2023AnnualReport
DRCorporationLimited
April2024
2023AnnualReport
PartI.ImportantNotes,ContentsandTerminology
TheBoardofDirectors,theSupervisoryCommitteeandtheDirectors,SupervisorsandseniormanagementofDRCOwarrantthattheinformationofthisannualreportistrue,accurateandcompletewithoutanyfalsestatements,misleadingstatementsormaterialomissions,andtheyshallassumeindividualandjointlegalresponsibility.BothZhangGuotao,thelegalrepresentativeofDRCOandHuangShuirong,theheadofthefinancialdepartmentinchargeofthecorporateaccountingconfirmthefinancialstatementscontainedintheannualreportaretrue,accurateandcomplete.Alldirectorshaveattendedtheboardmeetingatwhichthisreportwasdeliberated.DespitethesteadygrowthacrossChina’sjewelryindustryDuringtheReportingPeriod,thediamondmarketwasdefinitelyinfluencedbyaggravatedstructuraldifferentiation,intensecompetition,sluggishdemandsfordiamondjewelryasconsumerdiscretionaryandobviouslyincreasinggoldsafe-havendemands.AccordingtostatisticsfromtheGems&JewelryTradeAssociationofChina,thediamondproductsmarketdeclinedabout27%year-on-yearin2023.Withafullyself-managedsalesmodelanddiamondjewelryasthemainstay,theCompany’soperatingrevenuedropped40.78%year-on-yearin2023,whichwasconsistentwiththediamondmarkettrend.Incontextofstrategicbrandupgrading,DRCOhasadjustedcorporatechannelstrategyandoptimizedthechannellayouttoenhancebrandimageandserviceexperience.Somelow-potentialstoresandthoseincompatiblewiththebrandimagewereclosed,relocatedorreplaced.AccordingtotheAccountingStandardsforBusinessEnterprisesandtheCompany’saccountingpolicies,DRCOmadeprovisionsforassetimpairmentonstoresthatshowedsignsofimpairment,andmadebaddebtprovisionforleasedepositsthatcouldnotberecoveredduetoearlyclosureofthestores,basedontheprudenceprincipleofaccounting.Theabove-mentionedmattershadamajorimpactontheCompany’sperformanceinnetprofitsduringthereportingperiod,withthenetprofitsattributabletoshareholdersdownby90.54%year-on-year.Infaceofever-changingmarket,DRCOwillmakeactiveresponseandproactivelyadjuststrategiestoboostbrandpotentialandproductcompetitiveness.Inparticular,wewillfocusonsoundbusinessoperationandstoreprofitability,andtakeactionstoreducecostsandincreaseefficiency,withaviewtopromotingsustainableandstabledevelopmentoftheCompany.Duringthereportingperiod,therewereneithermaterialadversechangesinDRCO'sprincipalbusinessandcorecompetitiveness,norovercapacityorpersistentdeclineinthejewelryindustrywithoutanysignificantriskstosustainableoperationoftheCompany(seedetailsin“I.Industrialsituationduringthereportingperiod”,“II.DRCOmainbusinessduringthereportingperiod”and“III.Analysisofcorecompetitiveness”underPartIII.ManagementDiscussionandAnalysis).Anyforward-lookingstatementsinthisreportthataddressfutureplansandobjectivesdonotconstitutematerialcommitmentsbyDRCOtoinvestorsandinvestorsandrelatedpartiesshouldbeawareoftherisksinvolvedandshouldunderstandthedifferencesbetweenplans,projectionsandcommitments.DRCOisrequiredtocomplywiththedisclosurerequirementsforjewelry-relatedbusinessspecifiedinthe
Self-disciplinarySupervisionGuidelinesNo.3forCompaniesListedonShenzhenStockExchange-IndustryInformationDisclosure.AccordingtotheprofitdistributionplanapprovedbytheBoardofDirectors,acashdividendofRMB5.00(includingtax)forevery10sharesandzerobonusshare(includingtax)toallshareholders,aswellaszerosharetobetransferredtoallshareholdersfromcapitalreserveforevery10shares.
TableofContents
PartI.ImportantNotes,ContentsandTerminology...................................................................1
PartII.CompanyProfileandKeyFinancialIndicators................................................................8
PartIII.ManagementDiscussionandAnalysis...........................................................................14
PartIV.CorporateGovernance......................................................................................................68
PartV.EnvironmentalProtectionandSocialResponsibility.................................................103
PartVI.ImportantMatters...........................................................................................................104
PartVII.ChangesinSharesandInformationofShareholders.................................................188
PartVIII.InformationaboutPreferredShares............................................................................204
PartX.FinancialReport................................................................................................................205
DocumentsAvailableforInspectionIFinancialstatementssignedandsealedbyDRCO'slegalrepresentative,andtheheadofthefinancialdepartmentinchargeofthecorporateaccounting;IIOriginalcopyoftheauditors’reportsealedbytheaccountingfirm,andsignedandsealedbythecertifiedpublicaccountants;IIIAlloriginalcopiesofDRCO’sannouncementsanddocumentspubliclydisclosedonthewebsitesdesignatedbyChinaSecuritiesRegulatoryCommission(CSRC)inthereportingperiod;IVOriginalcopyofthe2023annualreport,whichhasbeensignedbyDRCO’slegalrepresentative;VOtherdocumentsavailableforinspection.Theabove-mentioneddocumentsarekeptattheBoardSecretaryOfficeofDRCO.
Terminology
Terms
| Terms | Definition |
| Company,DRCOandDRCorporation | DRCorporationLimited |
| DarryCorporation | ShenzhenDarryJewelryCo.,Ltd.,thepredecessorofDRCorporationLimited |
| DRInvestment | DRInvestment(Zhuhai)Co.,Ltd.,formerlyknownasShenzhenDRInvestmentCo.,Ltd.,isthecontrollingshareholderofDRCO. |
| WendiNo.1 | GongqingchengWendiNo.1InvestmentManagementPartnership(LP),ashareholderofDRCO |
| WendiNo.2 | GongqingchengWendiNo.2InvestmentManagementPartnership(LP),ashareholderofDRCO |
| WendiNo.3 | GongqingchengWendiNo.3InvestmentManagementPartnership(LP),ashareholderofDRCO |
| DarryQianhai | ShenzhenDarryCommercialManagementServicesCo.,Ltd.,awholly-ownedsubsidiaryofDRCO |
| LoveOnlyAI | ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd.,awholly-ownedsubsidiaryofDRCO. |
| HaoduoDiamond | HaoduoDiamond(Shenzhen)Co.,Ltd.,awholly-ownedsubsidiaryofDRCO |
| ShanghaiDarry | ShanghaiDarryDiamondCo.,Ltd.,awholly-ownedsubsidiaryofDRCO. |
| ChongqingDarry | ChongqingDarryJewelryCo.,Ltd.,awholly-ownedsubsidiaryofDRCO |
| CoupleShenzhen | CoupleOnly(Shenzhen)JewelryCo.,Ltd.,awholly-ownedsubsidiaryofDRCO |
| He’erCulture | He’erCulture(Shenzhen)Co.,Ltd.,formerlyknownasShenzhenShechusheJewelryCo.,Ltd.,isawholly-ownedsubsidiaryofDRCO. |
| He’erCulture(Hainan) | He’erCulture(Hainan)Co.,Ltd.,afirst-tierwholly-ownedsubsidiaryofDRCO |
| DRLUXURYSingapore | DRLUXURY(SINGAPORE)PTE.LTD.,awholly-ownedsubsidiaryofHe’erCulture(Hainan)Co.,Ltd. |
| DRLUXURYNetherlands | DRLuxuryNetherlandsHoldingB.V.,awholly-ownedsubsidiaryofDRLUXURY(SINGAPORE)PTE.LTD. |
| LOVEMONTMalaysia | LOVEMONT（MALAYSIA）SDN.BHD.,awholly-ownedsubsidiaryofDRLUXURY(SINGAPORE)PTE.LTD. |
| DRLUXURYUSA | DRLUXURYUSAINC,awholly-ownedsubsidiaryofDRLuxuryNetherlandsHoldingB.V.' |
| LoveofMyLoveWedding | LoveofMyLoveWeddingPlanning(Shenzhen)Co.,Ltd.,afirst-tier |
Planning(Shenzhen)
| Planning(Shenzhen) | wholly-ownedsubsidiaryofDRCO |
| ShenzhenDRJewelrySales | ShenzhenDRJewelrySalesCo.,Ltd.,afirst-tierwholly-ownedsubsidiaryofDRCO |
| HappyLovePsychologicalResearchCenter | HappyLovePsychologicalResearchCenter(Shenzhen)Co.,Ltd.,afirst-tierwholly-ownedsubsidiaryofDRCO |
| LoveofMyLoveWeddingPlanning(Sanya) | LoveofMyLoveWeddingPlanning(Sanya)Co.,Ltd.,afirst-tierwholly-ownedsubsidiaryofDRCO |
| LovemontHongKong | LovemontHongKongLimited,awholly-ownedsubsidiaryofDRLUXURY(SINGAPORE)PTE.LTD. |
| HaoduoDiamondZhizao | HaoduoDiamondZhizao(Shenzhen)Co.,Ltd.,awholly-ownedsubsidiaryofHaoduoDiamond(Shenzhen)Co.,Ltd. |
| HongKongDRGROUP | DRGROUPCOMPANYLIMITED,awholly-ownedsubsidiaryofShenzhenLoveOnlyAICloudTechnologyCo.,Ltd. |
| HongKongDR | DARRYJEWELRY(HK)LIMITED,awhollyownedsubsidiaryofDRGROUPCOMPANYLIMITED |
| CoupleHongKong | CoupleOnlyJewelryHongKongCompanyLimited,awhollyownedsubsidiaryofDRGROUPCOMPANYLIMITED |
| FrenchDRJEWELRY | DRJEWELRY,awhollyownedsubsidiaryofDRGROUPCOMPANYLIMITED |
| QianhaiWendi | ShenzhenQianhaiWendiManagementConsultingCo.,Ltd. |
| EveryYearTravelPhotography | ShenzhenEveryYearTravelPhotographyCultureCo.,Ltd. |
| WendiDesign | ZhuhaiWendiDesignConsultingCo.,Ltd. |
| WendiTechnology | ZhuhaiWendiTechnologyCo.,Ltd. |
| ZhuhaiWendiNo.1 | ZhuhaiWendiNo.1InvestmentPartnership(LP) |
| DR | AjewelrybrandownedbyDRCorporationLimited |
| ReportingPeriod | January1,2023–December31,2023 |
| ArticlesofAssociation | ArticlesofAssociationofDRCorporationLimited |
| Listing | ListingandtradingofDRCO’ssharesontheShenzhenStockExchange |
| YuanorRMB | Renminbi,thelawfulcurrencyofthePRC |
| CSRC | ChinaSecuritiesRegulatoryCommission |
| SZSE | ShenzhenStockExchange |
| SDE | ShanghaiDiamondExchange |
| ShenzhenAdministrationforMarketRegulation | ShenzhenAdministrationforMarketRegulation |
| CompanyLaw | CompanyLawofthePeople'sRepublicofChina |
| SecuritiesLaw | SecuritiesLawofthePeople'sRepublicofChina |
| Carat(inCt) | Aunitofmass(weight)ofgems.Theweightofacaratofdiamondsisequalto200milligramsor0.2gramsofdiamonds.Onecaratcanbesubdividedinto100pointsforcalculationofsmallerdiamonds; |
therefore,a50-pointdiamondis0.5carat.
| therefore,a50-pointdiamondis0.5carat. | |
| FinishedDiamond | Thediamondaftercutting,polishingandotherprocessingthatcanbeusedtomakejewelries |
| Goldjewelry | Jewelrywithgoldasthemainrawmaterial |
| Goldlease | DRCOleasesphysicalgoldfromthebankforanagreedtermanduponexpiration,returnsphysicalgoldofthesamequantityandvarietyandpaysthebankagoldleasingfeeasagreed. |
| ㎡ | Squaremeter,aunittomeasurethearea |
| DTC | DirecttoCustomer,adirect-to-consumerbusinessmodel |
PartII.CompanyProfileandKeyFinancialIndicators
I.BasicInformation
Stockabbreviation
| Stockabbreviation | 迪阿股份 | StockCode | 301177 |
| Chinesename | 迪阿股份有限公司 | ||
| Chineseabbreviation | 迪阿股份 | ||
| Englishname(ifany) | DRCorporationLimited | ||
| Englishabbreviation(ifany) | DRCO | ||
| LegalrepresentativeofDRCO | ZhangGuotao | ||
| RegisteredAddress | Room306,WingBuildingofLuohuInvestmentHoldingBuilding,No.112Qingshuihe1stRoad,QingshuiheCommunity,QingshuiheStreet,LuohuDistrict,Shenzhen | ||
| Postalcode | 518023 | ||
| Historyofchangesinregisteredaddress | OnFebruary18,2022,theregisteredaddressofDRCOwaschangedfrom"Room1108-1115(Room8~15,11thfloor),FuGaParkBuildingatIntersectionofCuishanRoadandWenjinNorthRoad,DongxiaoStreet,LuohuDistrict,Shenzhen"to"Room306,WingBuildingLuohuInvestmentHoldingBuilding,No.112Qingshuihe1stRoad,QingshuiheCommunity,QingshuiheStreet,LuohuDistrict,Shenzhen” | ||
| Officeaddress | 12thand13thFloor,TowerC,ChinaResourcesLandBuilding,NanshanDistrict,Shenzhen | ||
| Postalcode | 518057 | ||
| Company’sglobalwebsite | http://www.darryringgroup.com | ||
| IR@darryring.com | |||
II.ContactInformation
| Boardsecretary | Securitiesaffairsrepresentative | |
| Name | HuangShuirong | WangTong |
| Address | 13thFloor,TowerC,ChinaResourcesLandBuilding,NanshanDistrict,Shenzhen | 13thFloor,TowerC,ChinaResourcesLandBuilding,NanshanDistrict,Shenzhen |
| Telephone | 0755-86664586 | 0755-86664586 |
| Fax | 0755-86725390 | 0755-86725390 |
| IR@darryring.com | IR@darryring.com |
III.InformationDisclosureandPlaceforInspection
WebsiteofthestockexchangeforpublishingDRCO’sannualreport
| WebsiteofthestockexchangeforpublishingDRCO’sannualreport | ShenzhenStockExchange(SZSE):www.szse.cn |
| Nameandwebsiteofmediadesignatedforpublishingtheannualreport | SecuritiesTimes,SecuritiesDaily,ChinaSecuritiesJournal,ShanghaiSecuritiesNews,www.cninfo.com.cn |
| PlaceforinspectionofDRCO’sannualreport | TheBoardSecretaryOfficeofDRCO. |
IV.OtherRelevantInformation
AccountingfirmengagedbyDRCO
| Nameofaccountingfirm | Ernst&YoungHuaMingLLP(SpecialGeneralPartnership) |
| Officeaddress | Room01-12,17thFloor,EYTower,OrientalPlaza,No.1EastChang'anStreet,DongchengDistrict,Beijing |
| Namesofsigningaccountants | LiJianguangandChenHuijin |
SponsorengagedbyDRCOtoperformcontinuingsupervisionduringthereportingperiod?Applicable□Notapplicable
| NameofSponsor | Officeaddress | Nameofsponsorrepresentative | Continuoussupervisionperiod |
| ChinaSecuritiesCo.,Ltd. | 35thFloor,ShenzhenMediaGroupTower,Pengcheng1stRoad,FutianDistrict,Shenzhen | HuFangxingandFangYifeng | December15,2021-December31,2024 |
FinancialadvisersengagedbyDRCOtoperformcontinuingsupervisionduringthereportingperiod
□Applicable?NotapplicableV.KeyAccountingDataandFinancialIndicatorsWhetherDRCOneedstoretroactivelyadjustorrestatetheaccountingdataofthepreviousyears
□Yes?No
| 2023 | 2022 | YoYChanges | 2021 | |
| OperatingRevenue(RMB) | 2,180,277,744.00 | 3,681,574,412.68 | -40.78% | 4,622,729,780.48 |
| Netprofitattributabletoshareholdersoftheparentcompany(RMB) | 68,957,568.40 | 729,241,946.67 | -90.54% | 1,301,768,398.86 |
| Netprofitattributabletoshareholdersoftheparentcompanyafter | -120,482,993.14 | 613,246,940.64 | -119.65% | 1,248,508,013.88 |
deductingnon-recurringgainsandlosses(RMB)
| deductingnon-recurringgainsandlosses(RMB) | ||||
| Netcashflowfromoperatingactivities(RMB) | 36,965,507.81 | 818,011,112.24 | -95.48% | 1,544,212,850.71 |
| Basicearningspershare(RMB/share) | 0.17 | 1.82 | -90.66% | 3.62 |
| Dilutedearningspershare(RMB/share) | 0.17 | 1.82 | -90.66% | 3.62 |
| Weightedaveragereturnonnetassets | 1.04% | 10.68% | -9.64% | 32.61% |
| Attheendof2023 | Attheendof2022 | YoYChangesprecedingyear | Attheendof2021 | |
| Totalassets(RMB) | 7,530,082,307.45 | 8,815,748,380.27 | -14.58% | 8,269,184,150.24 |
| Totalequityattributabletoshareholdersoftheparentcompany(RMB) | 6,472,637,841.96 | 6,803,046,203.96 | -4.86% | 6,866,575,701.17 |
Foreachofthepastthreefiscalyears,theannualnetprofitbeforeorafterdeductionofnon-recurringprofitorloss,whicheverislower,hasbeennegative;therecentyear'sauditreportindicatesuncertaintyaboutthecompany'sabilitytocontinueoperating.
□Yes?NoThelowerofDRCO'snetprofitbeforeorafterdeductionofnon-recurringprofitorlossisnegative.?Yes□No
| Item | 2023 | 2022 | Remarks |
| OperatingRevenue(RMB) | 2,180,277,744.00 | 3,681,574,412.68 | / |
| Revenuedeductions(RMB) | 6,520,708.61 | 31,393,058.65 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. |
| Revenueafterdeduction(RMB) | 2,173,757,035.39 | 3,650,181,354.03 | / |
VI.KeyFinancialIndicatorsonQuarterlyBasis
Unit:RMB
Q1
| Q1 | Q2 | Q3 | Q4 | |
| OperatingRevenue | 705,008,310.46 | 536,798,959.96 | 500,227,028.95 | 438,243,444.63 |
| Netprofitattributabletoshareholdersofthelistedcompany | 100,931,877.53 | -47,520,815.11 | 20,731,956.90 | -5,185,450.92 |
| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses | 50,459,166.64 | -99,820,334.06 | -18,185,975.49 | -52,935,850.23 |
| Netcashflowsfromoperatingactivities | 92,814,601.29 | -51,795,042.10 | -46,916,743.66 | 42,862,692.28 |
TheabovefinancialindicatorsortheiraggregateamountsdiffersignificantlyfromtherelevantfinancialindicatorsdisclosedintheDRCO’squarterlyorsemi-annualreports.
□Yes?NoVII.DifferencesinAccountingDataUnderDomesticandInternationalAccountingStandards
1.ThedifferencesinnetprofitandnetassetsdisclosedinfinancialreportspreparedaccordingtoInternationalFinancialReportingStandards(IFRS)andChineseAccountingStandards(CAS).
□Applicable?NotapplicableThisreportispreparedinaccordancewithChineseAccountingStandardsanddoesnotincludedifferencesinnetprofitandnetassetsdisclosedduringthereportingperiodunderbothInternationalFinancialReportingStandards(IFRS)andChineseAccountingStandards.
2.ThedifferenceinnetprofitandnetassetsdisclosedinfinancialreportspreparedaccordingtobothoverseasaccountingstandardsandChineseaccountingstandards.
□Applicable?NotapplicableThisreportispreparedinaccordancewithChineseAccountingStandardsanddoesnotincludedifferencesinnetprofitandnetassetsdisclosedduringthereportingperiodunderbothOverseasFinancialReportingStandardsandChineseAccountingStandards.VIII.Non-recurringProfit/LossItemsandAmounts?Applicable□Notapplicable
Unit:RMB
| Item | Amountin2023 | Amountin2022 | Amountin2021 | Description |
| Non-currentassetdisposal | 1,483,669.10 | 1,244,949.25 | -732,715.39 |
gainsorlosses(includingthewrite-offportionofpreviouslyrecognizedassetimpairmentprovisions)
| gainsorlosses(includingthewrite-offportionofpreviouslyrecognizedassetimpairmentprovisions) | ||||
| Governmentgrantsrecognizedinthecurrentperiod'sincome,excludingthosecloselyrelatedtothecompany'snormaloperations,conformingtonationalpolicyregulations,enjoyedunderestablishedcriteria,andpersistentlyimpactingthecompany'sincomeandexpenses | 17,239,801.74 | 23,433,558.47 | 11,022,474.28 | |
| Gainsandlossesonchangesinthefairvalueoffinancialassetsandliabilitiesheldbynon-financialenterprisesandgainsandlossesonthedisposaloffinancialassetsandliabilities,exceptforeffectivehedgingoperationsrelatedtoregularbusinessoperationsofDRCO | 232,611,194.40 | 128,297,407.98 | 59,197,417.83 | Gainsandlossesonchangesinfairvalueoffinancialassetsheldfortrading,andinvestmentincomefromwealthmanagementproductsduringthereportingperiod. |
| Reversalofprovisionforimpairmentofreceivablessubjecttoseparateimpairmenttest | 1,476,671.46 | 0.00 | 0.00 | Collectionoflongoverduepaymentsfromshoppingmallsduringthereportingperiod. |
| Othernon-operatingincomeorexpensesotherthantheaboveitems | -4,827,618.30 | 631,427.63 | -747,789.79 | Mainlyincreaseinliquidateddamagesarisingfromearlyclosureofstoresduringthereportingperiod. |
| Less:Incometaxeffect | 58,543,156.86 | 37,612,337.30 | 15,479,001.95 | |
| Total | 189,440,561.54 | 115,995,006.03 | 53,260,384.98 | -- |
Detailsofothergain/lossitemsthatmeetthedefinitionofnon-recurringgains/losses:
□Applicable?NotapplicableDRCOhasnootheritemsinlinewiththedefinitionofnon-recurringgains/losses.Explanationondefiningthenon-recurringitemslistedinInterpretativeAnnouncementNo.1ontheDisclosureofInformationbyCompaniesIssuingSecuritiesPublicly—Non-recurringGainsandLossesasrecurringitems?Applicable□Notapplicable
| Item | Amountinvolved(RMB) | Explanation |
| Thevalue-addedtaxrefundobtainedduetotheportionoftheactualtaxburdenondiamondimportsexceeding4%,which | 8,266,133.90 | Governmentgrantsthatcomplywithnationalpoliciesandcontinuetoenjoyinaccordancewithcertain |
qualifiesforimmediaterefund.
| qualifiesforimmediaterefund. | standardquotasorquantities | |
| VATexemptionforsmall-scaletaxpayerswithmonthlysalesnotexceeding100,000yuan(or300,000yuanforquarterlysalesifaquarterisataxperiod) | 1,118,925.88 |
PartIII.ManagementDiscussionandAnalysis
I.Industrialsituationduringthereportingperiod
DRCOisrequiredtocomplywiththedisclosurerequirementsfor"jewelry-relatedbusiness"and"retailindustry"specifiedintheSelf-disciplinarySupervisionGuidelinesNo.3-IndustryInformationDisclosureofcompanieslistedontheShenzhenStockExchange.(I)OverviewofmacroeconomicenvironmentandmarketconditionsIn2023,worldeconomicrecoverywasweak,inflationremainedatahighlevelglobally,thespillovereffectsoftightenedmonetarypoliciesinmajoreconomiesbecameprominent,de-globalizationandgeopoliticalrisksincreased.Theexternalenvironmentbecameincreasinglycomplexandsevere.Thedomesticeconomicrecoveryprocessisvolatile,affectedbytheslowdownofChina'seconomicgrowthandthelackofconsumptionpowercausedbytherealestatemarketenteringthedownwardperiod,theoverallrecoveryspeedoftheconsumerindustryislessthanthemarketexpectations.AccordingtoaninvestigationofthePeople’sBankofChina(PBOC),thewillingnesstosaveofChinesedepositorsstayedatanall-timehighin2023,which,coupledwithasetbackinconsumerconfidence,ledtotheamountofnewdepositssubstantiallyexceedingthatofnewloansforthesecondconsecutiveyear.Nevertheless,consumptionstillshowedstrongresilienceamongthethreedriversofgrowth.In2023,China'sGDPgrewby5.2%overthepreviousyear,with4.3%ofthegrowthfueledbyfinalconsumptionexpenditure,makingittheprincipaldriveroftheeconomicrecovery.AfurtherbreakdownofthedataontotalretailsalesofconsumergoodssuggestsawidedisparityintherecoveryofdifferentconsumptiontypesinChina.Theconsumptionofcateringserviceswasbetterthanthatofcommodities,andtheconsumptionofconsumerstapleswasstrongerthanthatofconsumerdiscretionary.Theconsumptionstructureexhibitedadividedtrend.“Recoveryandexpandingconsumption”remainedkeywordsthroughouttheyear.Toboostconsumption,diversifiedconsumptionscenarioswerereopenedanddevelopedinamoreorderlyfashion.Respondingtothestrategyofexpandingdomesticdemand,relevantpoliciesgavefullplaytothefundamentalroleofconsumptionineconomicdevelopmentandcontinuedtoenhancethelastingpowerofhigh-qualitydevelopment.Forinstance,theNationalDevelopmentandReformissuedthe“MeasurestoRestoreandExpandConsumption”,whichproposed20specificmeasurestostabilizespendingonbig-ticketitemsandexpandserviceconsumptionandformedapolicypackage.Severalauthoritiesproposedtostimulateconsumptionwithafocusonresidentincome,financialservicesandtheconsumptionenvironment,etc.,andspecificinitiativesrepresentedbyconsumptionvoucherswerelaunchedoneafteranother.Theconsumermarketisbecomingincreasinglycomplexanddiversified.Theconsumersarebothemotionalandrationalindecision-making.Inparticular,asthequalityoflifeimproves,peopletendtopursueindividualizedandcustomizedconsumption.Consumptionisgettingmoreandmorediversifiednomatterintermsofinnovativeproductdesign,individualizedmarketingstrategyorcross-industryintegrateddevelopment.(II)Overviewofthedevelopmentofthejewelryindustry
In2023,theglobaljewelrymarketwasUS$353.26billion,inwhichtheAsia-Pacificjewelrymarketaccountedfor59.9%.Thishugemarketsharewasmainlyattributedtothehighdemandforjewelryindenselypopulatedcountries.Asamajorplayerintheglobaljewelrymarket,China'sjewelryindustryhasenteredanewbusinesscycle.Accordingtothe“2023DevelopmentReportofChina'sJewelryIndustry”issuedbytheGems&JewelryTradeAssociationofChina,thetotalmarketsizeofChina'sjewelryindustryin2023wasapproximatelyRMB820billion,anincreaseof14%over2022.ThegoldproductsmarketstoodatapproximatelyRMB518billion,up26.3%year-on-year;thejademarketwasaroundRMB150billion,rising2%year-on-year;andthediamondproductsmarketwasaboutRMB60billion,down26.8%year-on-year.Withtheincreaseindisposableincome,theiterationofjewelrycraftsmanshipanddesign,aswellastheever-changingconsumerdemand,StatistaexpectsChina’sjewelrymarkettogrowatacompoundgrowthrate(CAGR)of4.39%from2024to2028,andthereisstillroomforgrowthinChina'sjewelrymarket.Bycategory,thenaturaldiamondmarketremainedsluggishin2023,andthepriceoffinisheddiamondwasdeclining.Duetosupplycontrolintheupstreamandproductioncutsinthemidstream,theB2Bpriceofnaturaldiamondreboundedvisiblyinthelasttwomonths,buttheRapaportDiamondPriceIndexshowedthatexceptfor0.30carat,theotherthreesegmentsalldecreasedin2023,respectivelyby25.9%,20.6%and
11.3%,suggestingaweakmarketdemandfornaturaldiamond.Accordingtothe“DiamondInsightReport2023”ofDeBeers,China'smiddleclassisgrowingdramaticallyfromoneinfive(21%)in2010tooneintwo(51%)in2022,andpossiblytotwo-thirdsby2030.ThediamondindustryinChinamaybenefitfromthiswithRMB140billionofbusinessopportunities.Inshort,thejewelryindustryisundergoinganunprecedentedreformwiththedevelopmentofglobaleconomyandthechangeofconsumptionconcepts.Thedevelopmentofdigitizationinthejewelryindustry,thegrowingconcernaboutsustainabledevelopment,andthepursuitofindividualizationandspiritualsatisfactionaredrivingmulti-dimensionalupgradingofthejewelryindustry.China,asthemostpromisingconsumermarketforjewelry,willseeanewdevelopmentpattern.Thediamondjewelryindustryhasbegunacyclicaladjustmentfilledwithchallengesandtests,andtheleadingplayersthatwouldcontinuetoimprovetheircorecompetitivenessandbrandpotentialcouldseizetheopportunityofindustryadjustmenttoexchangetimeforspaceandgainabiggermarketshare.
1.Increaseinresidentsdisposalincomedrivessteadygrowthoftheindustry,andthecombinedemergenceofdiversifiedconsumerdemandsandcustomerbehaviorsConsumptionhasbecomeakeydriverofChina’seconomicgrowthinwhichtheresidentsdisposalincomelevelisanimportantfactor.In2023,thepercapitadisposableincomeinChinawasRMB39,218,up6.1%fromthepreviousyear,whichwasfasterthanthegrowthofGDP.Thegrowthindisposalincomelaysthefoundationforincreasingthepenetrationrateofdiamondjewelryasconsumerdiscretionary.Inthemid-andlong-run,thereismuchroomforthepenetrationrateandpercustomertransactionofdiamondjewelrytoriseinChina.AccordingtodatafromWorldJewelryAssociationasquotedbyForward(QianzhanIndustrialResearchInstitute),thepenetrationratesofdiamondjewelryintier-1,tier-2,andtier-3citiesandbelowwererespectively61%,48%and37%,lowerthanthepenetrationratesofgoldandplatinum.The“DiamondInsightReport2023”showedthatthepenetrationrateofdiamondconsumption,percapitaannualspending
ondiamond,andpercapitalpossessionofdiamondinChinawerelessthan50%ofthoseintheUSandJapan.Thisshowsthatwiththecontinuousimprovementofpercapitadisposalincomeandpenetrationrateislikelytospurtheexpansionofthejewelryindustry.InChina,oneofthelargestconsumermarketsintheworld,thereisastrongdemandfordiversifiedandinnovativeproductsandservices.Theever-changingpreferencesandbehavioralpatternsofChineseconsumersbringtremendousopportunitiesandchallengesforjewelrybrands.Withamiddle-incomepopulationof470million,Chinaisgoingthroughaconsumertransitionfromfocusoncostperformancetofocusonappearancetofocusonpsychologicalsatisfaction.Inadditiontotheassetpreservationandappreciationfunctionofjewelry,diversifiedconsumptiondemandsandconsumerbehaviorsemergeincombinationastheconsumergroupandconsumptionscenariosexpand.AccordingtostatisticsfromtheGems&JewelryTradeAssociationofChinaandErnst&Young,femaleconsumersareprimarilyinterestedinthedesignofjewelry.Therefore,theabilitytothoroughlyunderstandtheemotionalandscenariodemandsofconsumers,theresearch,developmentanddesignability,andthevalueandmeaningconveyedwillbeincreasinglyimportantforbrandsincompetition.
2.Marketfluctuationacceleratesindustryreshuffle,andtheriseofself-ownedbrandsleadstomarketconcentrationtowardstopbrandsAfterthepublichealthemergencyandthewithdrawalofcapitalfromconsumergoods,thetransformationandupgradingoftraditionaljewelersthatrelyonextensivechannelcoveragetobuildbarrierstocompetitionandgainmarketsharewithstoresacceleratetheexitofsmallandmedium-sizedjewelrybrandsandtheconcentrationofmarketresourcestowardsthetopcompanies.Jewelerswithbrandappealandinfluencemayintegrateupstreamanddownstreamresourcesandenlargetheirmarketsharemoreefficiently,leadingthemarkettomovetowardsthetopbrands.AccordingtodatafromEuromonitor,China’sjewelryindustryshowedatendencyofconcentrationtowardsthetopbrandsduring2016-2023,withCR10increasingfrom
19.1%toalmost35.6%,anddespitearelativelyfragmentedcompetitionlandscape,thetopcompaniesstillhaveroomtofurtherraisetheirmarketshare.AresearchconductedbyMcKinseyforChowTaiFookin2022suggestedthatthesalesofChinesebrandeddiamondwouldgrowat10%-14%annuallyinthecomingyears.ThecontinuousimprovementintheconcentrationofjewelrybrandsisinseparablefromthedeepinvolvementofChina'sself-ownedbrandsinglobalization.Thediversificationofbrandinnovation,thedevelopmentofnewconsumerbrandsandthecreationofbrandconsumptionatmosphereallfueltheriseofself-ownedbrands.Inthecompetitionwithinternationalbrands,self-ownedbrandscontinuetoaccumulateproductinnovationabilityandbrandpower.Accordingtothe“DiamondInsightReport2023”ofDeBeers,establishedbrandsrepresentedastaggering92%ofalldiamondjewelrypurchasesin2022,whilein2016,thepercentagewasonly44%.Amongthem,Chinesebrandsledthepurchaseofdiamondjewelryandcontributedapproximately80%ofthetotalpurchases,indicatingthatconsumersbuydiamondjewelryforthebrandculture,emotionalconnotations,extensiverecognitionandbrandinfluence.ThisphenomenonwherebrandisthevehicleandcultureisthelanguagereflectsthedeepfusionofChinesecultureandmodernconsumerism.
3.Thejewelryindustryentersanewdevelopmentstage,andstructuraldifferentiationintensifies
In2023,catalyzedbymultiplefactorssuchasthesustainedsurgeingoldpricesintheshorttomidterm,thefurtherbroadeningofconsumptionscenarios,andtheiterationandupgradingofnewcraftsanddesigns,thegoldjewelryindustryshowedarelativelyimpressiveperformanceamongconsumerdiscretionary.DatafromtheNationalBureauofStatisticsshowsthatthetotalretailsalesofconsumergoodsin2023wasRMB47.15trillion,anincreaseof7.2%overthepreviousyear.Theretailsalesofgoldandsilverjewelryintheconsumermarketwasstrong,withthetotalretailsalesofgoldandsilverjewelryabovethedesignatedsizeamountingtoRMB331billion,up13.3%year-on-year,whichwasthesecondfastestgrowth.Goldisapreciousmetalstronglycorrelatedwiththemonetarysystem,theeconomiccycle,andtheglobaleconomy.Basedonitsinherentmonetaryattributes,goldcontinuestobeasafehavenofassetsforChineseconsumers.AccordingtothelateststatisticsreleasedbyChinaGoldAssociation,thewholecountryconsumed1,089.69tonsofgoldin2023,anincreaseof8.78%comparedwiththesameperiodin2022,including706.48tonsofgoldjewelry,ayear-on-yearincreaseof7.97%;299.60tonsofgoldbarsandcoins,ayear-on-yearincreaseof15.70%;and83.61tonsofgoldforindustrialandotherpurposes,ayear-on-yeardecreaseof5.50%.Benefitingfromthecontinuousriseingoldpricesandtheincreasingdemandofresidentsforvaluepreservationandriskhedging,investmentinphysicalgoldattractedgreaterattentionandtheconsumptionofgoldbarsandcoins,whichhaverelativelylowpremiums,showedaquantitativegrowth.However,thedemandfordiamond,whichalsobelongstojewelry,experiencedcyclicaladjustments.IDEXdatashowedthattheclosingpriceofthefinisheddiamondpriceindexattheendofDecember2023was
16.53%lowerthanthatattheendofDecember2022,whiletheannualdropin2022was6.4%.Moreover,accordingtocustomsstatisticsforShanghaiDiamondExchange,diamondtransactionsatShanghaiDiamondExchangetotaledUS$3.109billionduringJanuary-December2023,adecreaseof29.7%year-on-year.Meanwhile,theemergenceoflabgrowndiamondsarousedpublicdiscussiononthe"valueofdiamond",andconsumersmisunderstoodthescarcityanduniquenessofnaturaldiamondstovaryingdegreesasaresultofpublicitybysomeWeMediaaccounts.However,quiteanumberofindustrypractitionersbelievethatlabgrowndiamondsandnaturaldiamondsaretwocompletelydifferentmarketsandsegments,andthatlabgrowndiamondsprovideanewoptionforthediamondconsumermarket,whichwillhelptoexpandthevolumeofthediamondmarketasawhole.Frost&Sullivanprojectedthattheglobaldiamondmarketwouldseeasupply-demandgapof159millioncaratsby2030.Hence,someseniorindustryanalystsbelievethatthedeclineinnaturaldiamondsisessentiallyacorrectionoftherapidriseindiamondpricesbetween2020and2021.Asdiamondproductionfalls,thelong-termscarcityofdiamondswillberestoredandthepriceindexwillgraduallypickup.4.Thetransitionfrom“channelmodel”to“newretailmodel”promotesdigitaltransformationoftheindustryInthepast,consumersdecidedwhetherabrandwasreliablemainlybasedonthesizeofitschannels,sopopularjewelrybrandspenetratedthemarketmostlybyexpandingtheirchannelstoreachasmanyconsumersaspossible.Inrecentyears,however,asthe"aestheticconsciousness"awakens,generalconsumerscanhardlyformanindependentconsumerpreferencethroughrepeatedpurchasesofjewelry,whichishigh-pricedlow-frequencyconsumergoods,makingexternalreputationparticularlyimportant.Asa
result,brandoperatorsthatfocusonterminalmarketing,productinnovationanddigitalcapacitybuildingaremorelikelytogainnewgrowthmomentuminthenewconsumerenvironment,whichacceleratesthetransitionofthejewelryindustryfromthe"channelmodel"tothe"newretailmodel".Meanwhile,therapiddevelopmentofonlinemediainfluencestransmissionefficiency,whichgivesconsumersenoughoptionsandselectivepower.Thus,jewelrybrandsmustaccuratelygrasptheendconsumerdemandsandrespondquickly.theimportanceofthewhole-linkdigitalcapacityisincreasinglyhighlightedinthedemand-ledstage.Inthedemand-ledstage,digitalcapabilityacrossthechainbecomesincreasinglyimportant.Overthepastthreeyears,changesinconsumers,media,andbrandshaveshapedanewdirectionforonlineandofflineintegration.Digitaltransformationenablesjewelrycompaniestodeliverpersonalizedservicesandcustomizedproductsbetter,andtheycanunderstandconsumerpreferencesandneedsmoreaccuratelybasedondatacollectionandanalysis.Inadditiontoimprovementsinproductdevelopment,designandothertangibleaspects,consumerexperienceandexperientialconsumptionarebecomingessentiallinksintheconsumptionchain.Accordingtothe"2024ConsumerandMediaTrendsReport"issuedbyGroupM,84%ofconsumerswouldexperienceaproductbeforemakingapurchaseoffline,inwhich31%wouldviewaproductonlineandthenexperienceandbuyitoffline.Theinfluenceofrecommendationsandco-brandingonconsumers'finalpurchasesincreasedby25%year-on-yearin2023.Thepercentageofconsumerswhosearchedformoreinformationbeforemakinganonlinepurchasegrewfrom58%in2022to65%in2023.Theconsumerbuyingbehaviorsshowthat,moreandmoreconsumerstendtobuyfromchannelssuchasofficialwebsite,miniprogramandprivatetrafficpoolofshoppingguides,andconsumersareincreasinglyinfluencedbytherecommendationsofcelebritiesandopinionleadersonWeMediaplatforms.5.Deepinsightintoconsumerneedsisstillakeyfactorinthelong-termdevelopmentofthejewelryindustryChina'sconsumermarketischangingrapidly,withthecoreelementofcompetitionshiftingfromproductionandchannelstotheconsumer'smentality.Itiscrucialforbrandstogaindeepinsightsintoconsumerneeds,secureafavorablepositioninconsumers'minds,andbuildacognitiveadvantagethroughadifferentiatedpositioning.In2023,somejewelrybrandscombinedtraditionalcraftsmanship,weddingcultureandChineseandWesternaestheticelementsintotheirjewelrydesignbasedonathoroughunderstandingoftraditionalweddingcultureandmodernconsumerneeds,anddevelopeduniquelydifferentiatedproductsthatwontheheartsofconsumers.Furthermore,brandimpressionthatrepresentstheproductsisthekeytoconsumerrecognition.Itrequiresjewelrybrandstomakeprospectivearrangementsintermsofdesignconceptplanning,selectionofsuitabletechnology,andcultivationofculturalconnotations.Giventhestronglinkbetweenjewelrybrandandconsumertrust,quality,personaltasteandstyle,brandhasbecomeasignificantdriverofconsumers'purchasingdecisions.Jewelrybrandsthathaveaccumulatedcertainbrandassetstendtobemoreinfluential.Accordingtothe"2023JewelryConsumerTrendsReport",56%ofrespondentsinChinaassociatedjewelrybrandswithtrustandquality,while53%associatedbrandswiththeexpressionofpersonaltasteandstyle.ConsumersontheChinesemainlandweremorebrand-consciousthantheirHongKongcounterparts,asthereportfoundthat86%ofrespondentsontheChinesemainlandattachedmoreimportancetobrand.Thus,thecredibilityandqualityofjewelrybrandsplayapivotal
roleininfluencingpurchasedecisions.Moreover,consumersexpecttoseevaluesandemotionsconsistentwiththeirownintheimage,storyandunderlyingphilosophyofthebrandtheychoose,sojewelrybrandswithemotionalconnotations,valuepropositions,attitudesandtonalityarelikelytofurtherbroadentheirconsumptionscenarios.Accordingtothe"2023JewelryConsumerTrendsReport",thevaluepropositionofnaturaldiamondismultifacetedandnotlimitedtoitsscarcityandvaluepreservationfunction.Chineseconsumersassociatenaturaldiamondwithsignificantmomentsintheirlives,anniversaries,loveandachievements.Femalerespondentsshowedthemoststrikingemotionalconnectiontodiamond.82%offemaleconsumersbelievedthatdiamondrepresentedeternallove/trueloveorsymbolisedconstantcommitmentandfidelityinaproposal.II.DRCOmainbusinessduringthereportingperiodDRCOabidesbythedisclosurerequirementsforjewelry-relatedbusinessandretailindustryspecifiedintheSelf-disciplinarySupervisionGuidelinesNo.3-IndustryInformationDisclosureofCompaniesListedontheShenzhenStockExchange.(I)MainbusinessofDRCOInsistingonthecorporatevisionofgloballeaderintrueloveculture”,DRCOisaglobalizedpubliccompanyengaginginhigh-enddiamondsandjewelryandrelatedserviceswithtrueloveculture.Focusingonsuchbusinessscenariosasengagement,wedding,anniversariesandgoldbridalgifts,DRCOcontinuestodeliverworldwideconsumerswithhigh-qualityjewelryproductsanduniquetrueloveexperience&services.Withthemissionof"helpingmorepeopleexpressloveandmakinglovehappyforalongtime"andtohelpwidelyexpressloveandmakeloveforever,DRDiamondRing,thecompany'shigh-endjewelrybrand,isdedicatedtospreadingandwitnessingtruelovestoriesworldwide,andencourageseveryonetobravelyseektruelove,forgingaglobalbrandimagecharacterizedbyromance,love,fashionandsincerity.ThroughaglobalonlineandofflineDTC(DirecttoConsumer)retailnetwork,ourproductsareavailableinover200citiesatdomesticandoverseas(e.g.Paris,France,andHongKong,China).Empoweredbydifferentiatedpositioning,professionaldesignsanduniqueserviceexperience,DRhasbecomeoneofleadingbrandsintheworldwidemarketofdiamondrings,andreapedmanyauthoritativeinternationalawards,suchas"Asia'sTop500Brands"byWorldBrandLab,“BrandoftheYear”byJNAAwards,and“BestInternationalEngagementRingBrandoftheYear”byHKCT,forseveralconsecutiveyears.Duringthereportingperiod,theCompanywaslistedintoTop100LuxuryGoodsEnterprisesfor2023byDeloitte.Moreover,DRDiamondRingalsoreceivedtheprestigious"ChineseImageBrandsAward2023”fromCCTV.Atwhatevertime,everyonestillyearnsforalifetimeoftruelovedeepinhisheart,DRCondensesthemostdevoutandattitudeoftruelovebelief.Therefore,wesincerelyhopetohelpmorepeopleexpress,findandenjoytrueloveforever,andpromotesuchbeliefaroundtheworld,whichisoriginalintentionandaspirationforcreatingDRbrand.Tothisend,everyDRdiamondringiscustomizedforonlyoneperson.Andaroundtheuser'slifelongromancecontinuestoexpand,DRbrandoffers"Wedding+"servicescoveringweddingrings,proposal/weddingplanning,anniversarygifts,andweddingphotographyorportrait.ThebeginninganddestinationofDRbrandiscenteredonwitnessing,spreadingandservingtruelove.(II)MainproductsofDRCO
TheCompanyisdedicatedtocreatinghigh-qualityinnovativeproductsandprovidingsuperlativeservicestooffereachcustomerauniqueexperienceoftruelove.Ourmainproductscurrentlyincludeengagementrings,weddingrings,anniversarygifts,andgoldbridalgifts.Duringthereportingperiod,theCompanycollaboratedwithrenowneddomesticandinternationalcraftsmen,whopaytributetothedeterminationtoloveforeverwithadeepdedicationtocraftsmanship.Withauniqueaestheticattitudeandstringentcraftsmanshipstandards,theymeticulouslycraftedeachpieceofjewelryrepresenting"thesoletrueloveinonelife".
(III)AnOverviewoftheOperationalStatus
1.Customizedfullyself-operatedsalesmodelThecompanyadoptsanintegratedomni-channelapproach,providingconsumerswithaseamlessonlineandofflineshoppingexperience.Channelssuchastheofficialwebsite,mini-program,Tmall,andJDflagshipstoresserveasonlineplatformsforbrowsingandpurchasing,whileofflinestoresofferphysicalretailexperiences.Thisstrategyleveragestheefficiencyofonlineplatformsandthetactileexperienceofofflinechannels.Forbrandpromotion,imagebuilding,andunifiedmanagement,theDRbrandfollowsafullyself-operatedmodel,withallstoresmanagedandoperatedbythecompany.Bothonlineandofflineproductsareuniformlypriced,primarilyofferingcustomizedproductstocustomers.Underthecustomizationmodel,customersplaceordersandmakepayments(eitherdepositsorfullpayments)onlineoroffline.Thecompanythenarrangesproductionthroughoutsourcing,deliverstheproductsdirectlytocustomers'doorstepsafterreceivingthefinalpayment,orallowscustomerstocollecttheproductsfromdesignatedstores.
Toenhancetheromanticexperienceforcustomers,thecompanyoffersarangeofvalue-addedservices,includingthe"TrueLoveAgreement,""LoveConfirmationCertificate,"andco-hostingofmarriageproposalceremoniesatstores.Theseservicesenrichtheoverallconsumerexperience,furtherreinforcingthebrand'sidentityandemotionalconnectionwithcustomers.
(1)RevenuebybusinesssegmentduringthereportingperiodDuringthereportingperiod,theCompanyachievedrevenueofRMB2,180.28million,adecreaseof40.78%comparedtothesameperiodlastyear,andthecorrespondingorderquantitydecreasedby38.18%year-on-year.However,theaveragetransactionpriceremainedrelativelystable,adecreaseof3.28%year-on-year(excludingotherbusinesses).Intermsofbusinessmodelclassification,therevenuefromonlineself-operated,offlinedirectlyoperated,andofflinejointlyoperatedchannelsamountedtoRMB227.09million,RMB1,769.41million,andRMB177.26millionrespectively.Thisrepresentsdecreasesof42.45%,40.63%,and35.59%respectivelycomparedtothesameperiodlastyear.RevenuefromotherbusinessactivitiesamountedtoRMB6.52million,representingadecreaseof79.23%comparedtothesameperiodlastyear,mainlyduetoareductioninproductdisposalsduringthereportingperiod.Duringthereportingperiod,thecompany'scomprehensivegrossprofitmarginwas68.83%,adecreaseof
0.96percentagepointscomparedtothesameperiodlastyear.Bothonlineandofflinebusinessmodelsarethecompany'smainbusiness,accountingforover99%ofrevenue.Thegrossprofitmarginofthemainbusinessisbasicallyconsistentwiththecomprehensivegrossprofitmargin,andthelevelofgrossprofitmarginremainsrelativelystable.
Revenuebybusinesssegmentsduringthereportingperiod
Unit:RMB0’000
BusinessSegment
| BusinessSegment | 2023 | 2022 | YoYchangeinrevenue | YoYchangeingrossmargin | ||||
| Revenue | Operatingcost | Grossmargin | Revenue | Operatingcost | Grossmargin | |||
| OnlineSelf-Operated | 22,708.81 | 7,589.49 | 66.58% | 39,459.33 | 12,847.89 | 67.44% | -42.45% | -0.86% |
| OfflineDirect-Operated | 176,941.40 | 54,320.50 | 69.30% | 298,037.34 | 86,718.60 | 70.90% | -40.63% | -1.60% |
| OfflineJoint-Operated | 17,725.50 | 5,664.30 | 68.04% | 27,521.47 | 8,713.53 | 68.34% | -35.59% | -0.29% |
| OtherBusinesses | 652.07 | 381.03 | 41.57% | 3,139.31 | 2,947.23 | 6.12% | -79.23% | 35.45% |
| Total | 218,027.77 | 67,955.33 | 68.83% | 368,157.45 | 111,227.25 | 69.79% | -40.78% | -0.96% |
Note:Theabovefiguresareroundedtotwodecimalplaces.Someofthefiguresareslightlydifferentintheendingsduetoroundingandarenotcalculationerrors.
(2)Storesinthereportingperiod
①ChangesinnumberofstoresDuringthereportingperiod,thecompanyproactivelyadjusteditsstorechannelstrategytoadapttomarketchanges.Itconductedassessmentsofexistingstoresandoptimizedchannelsbasedonfactorssuchas
changesincommercialdistricts,alignmentwithcustomerdemographics,andbrandpositioning.Throughoutthereportingperiod,thecompanyopened24newstores(8inQ1,7inQ2,4inQ3,and5inQ4)andclosed184stores(9inQ1,18inQ2,86inQ3,and71inQ4),resultinginanetreductionof160stores.Asoftheendofthereportingperiod,thecompanyoperatedatotalof528stores,allofwhichwereself-operated.Thesestoreswerelocatedin209citiesacross31provinces/autonomousregions/municipalitiesinChina,with2non-mainlandstoreslocatedinParis,France,andHongKong,China.Themajorityofdomesticstoresweresituatedinthird-tiercitiesandabove,with330storeslocatedinfirstandsecond-tiercities,accountingforapproximately62.74%ofthetotal,and196storeslocatedinthird-tiercitiesandbelow,accountingforapproximately37.26%ofthetotal.
StoreMovements
Tierofcity
| Tierofcity | Classification | Openingnumber | Open | Close | Netchange | Closingnumber | ||
| New | Changeinbusinessmode | Closed | Changeinbusinessmode | |||||
| Tier-1andtier-2 | Direct--operated | 411 | 11 | 2 | 122 | 1 | -110 | 301 |
| Joint-operated | 38 | 1 | 1 | 9 | 2 | -9 | 29 | |
| Subtotal | 449 | 12 | 3 | 131 | 3 | -119 | 330 | |
| Tier-3,4andbelow | Direct--operated | 218 | 11 | - | 49 | 1 | -39 | 179 |
| Joint-operated | 19 | 1 | 1 | 4 | - | -2 | 17 | |
| Subtotal | 237 | 12 | 1 | 53 | 1 | -41 | 196 | |
| Overseas | Direct--operated | 2 | - | - | - | - | - | 2 |
| Joint-operated | - | - | - | - | - | - | - | |
| Subtotal | 2 | - | - | - | - | - | 2 | |
| Total | Direct--operated | 631 | 22 | 2 | 171 | 2 | -149 | 482 |
| Joint-operated | 57 | 2 | 2 | 13 | 2 | -11 | 46 | |
| Total | 688 | 24 | 4 | 184 | 4 | -160 | 528 | |
②NewlyopenedstoresDuringthereportingperiod,DRCOopened24newself-operatedstores,adecreaseof230YoY.Duringthereportingperiod,thenewlyopenedstoresrealizedrevenueofRMB34.19million,accountingfor1.57%ofthetotalrevenue;theirgrossprofitsreachedRMB23.91million.
Newlyopenedstores
Unit:RMB0’000
Mode
| Mode | Region | 2023 | 2022 | ||||||||
| Numberofstores | Area(m?) | Revenue | As%oftotalrevenue | Grossprofit | Numberofstores | Area(m?) | Revenue | As%oftotalrevenue | Grossprofit | ||
| Joint-operated | NorthChina | - | - | - | - | - | 6 | 413.00 | 1,409.48 | 0.38% | 986.49 |
| EastChina | - | - | - | - | - | 8 | 436.28 | 822.41 | 0.22% | 538.26 | |
| SouthChina | - | - | - | - | - | 1 | 65.00 | 378.43 | 0.10% | 265.26 | |
| CentralChina | 1 | 110.00 | 63.05 | 0.03% | 44.49 | 1 | 31.00 | 398.99 | 0.11% | 255.46 | |
| Northwest | 1 | 36.60 | 210.69 | 0.10% | 128.52 | - | - | - | - | - | |
| Subtotalofjoint-operatedstores | 2 | 146.60 | 273.74 | 0.13% | 173.00 | 16 | 945.28 | 3,009.31 | 0.82% | 2,045.47 | |
| Direct-operated | Northeast | 1 | 98.00 | 155.97 | 0.07% | 95.24 | 17 | 1,443.78 | 2,269.53 | 0.62% | 1,590.26 |
| NorthChina | 2 | 211.00 | 285.71 | 0.13% | 199.52 | 27 | 2,639.87 | 5,281.82 | 1.43% | 3,783.43 | |
| EastChina | 5 | 395.15 | 606.17 | 0.28% | 435.06 | 84 | 7,630.04 | 9,425.75 | 2.56% | 6,703.03 | |
| SouthChina | 3 | 334.33 | 462.18 | 0.21% | 326.37 | 25 | 2,561.07 | 3,133.24 | 0.85% | 2,229.32 | |
| CentralChina | 2 | 134.00 | 131.39 | 0.06% | 89.97 | 26 | 2,629.97 | 3,324.86 | 0.90% | 2,372.48 | |
| Northwest | 6 | 625.56 | 772.49 | 0.35% | 542.54 | 18 | 1,535.64 | 3,107.10 | 0.84% | 2,186.87 | |
| Southwest | 3 | 245.82 | 730.86 | 0.34% | 529.02 | 41 | 4,692.06 | 3,135.16 | 0.85% | 2,231.48 | |
| Subtotalofdirect-operatedstores | 22 | 2,043.86 | 3,144.78 | 1.44% | 2,217.72 | 238 | 23,132.43 | 29,677.45 | 8.06% | 21,096.87 | |
| Total | 24 | 2,190.46 | 3,418.52 | 1.57% | 2,390.72 | 254 | 24,077.71 | 32,686.77 | 8.88% | 23,142.34 | |
Note:Theabovefiguresareroundedtotwodecimalplaces.Someofthefiguresareslightlydifferentintheendingsduetoroundingandarenotcalculationerrors.
③ImpactofclosedstoresduringthereportingperiodIn2023,theCompanyactivelyadjustedandoptimizedthestorechannelstrategytofocusonimprovingthequalityandprofitabilityofthestores.Duringthereportingperiod,theCompanyclosed184stores,including171direct-operatedand13joint-operatedones.TheseclosedstoresearedrevenueofRMB226.25millionduringthereportingperiod.BasedontherevenueofRMB567.92millioninthesameperiodoftheprecedingyear,theimpactoftheclosedstoresonDRCO’srevenueduringthereportingperiodwasRMB-341.67million,representing-15.67%oftherevenueinthereportingperiod.
Analysisoftheimpactofclosedstoresonrevenueduringthereportingperiod
Unit:RMB0’000
| Mode | Region | Closed | Revenueduringthereporting | Revenueinthesameperiodofthepreceding | ImpactofclosedstoresonDRCO | Impactofclosedstoresasa%of |
period
| period | yearcreatedbystoresclosedduringthereportingperiod | duringthereportingperiod | revenueduringthereportingperiod | |||
| Joint-operated | Northeast | 1 | 143.64 | 404.14 | -260.50 | -0.12% |
| NorthChina | 1 | 99.31 | 315.99 | -216.68 | -0.10% | |
| EastChina | 6 | 493.88 | 1,225.73 | -731.85 | -0.34% | |
| SouthChina | 2 | 315.39 | 807.74 | -492.34 | -0.23% | |
| CentralChina | 2 | 130.48 | 275.92 | -145.44 | -0.07% | |
| Southwest | 1 | 122.50 | 388.57 | -266.07 | -0.12% | |
| Subtotalofjoint-operatedstores | 13 | 1,305.21 | 3,418.09 | -2,112.88 | -0.97% | |
| Direct-operate | Northeast | 7 | 628.98 | 1,209.68 | -580.70 | -0.27% |
| NorthChina | 16 | 2,445.51 | 6,164.20 | -3,718.69 | -1.71% | |
| EastChina | 81 | 8,886.44 | 22,583.06 | -13,696.62 | -6.28% | |
| SouthChina | 22 | 2,652.14 | 9,065.46 | -6,413.32 | -2.94% | |
| CentralChina | 12 | 2,102.24 | 5,221.35 | -3,119.10 | -1.43% | |
| Northwest | 12 | 1,886.99 | 4,426.82 | -2,539.83 | -1.16% | |
| Southwest | 21 | 2,717.32 | 4,703.26 | -1,985.94 | -0.91% | |
| Subtotalofdirect-operatedstores | 171 | 21,319.62 | 53,373.82 | -32,054.20 | -14.70% | |
| Total | 184 | 22,624.83 | 56,791.92 | -34,167.08 | -15.67% | |
Note1:ImpactofclosedstoresonDRCOduringthereportingperiod=Revenueofclosedstoresduringthereportingperiod-revenueofclosedstoresinthesameperiodofprecedingyearNote2:Theabovefiguresareroundedtotwodecimalplaces.Someofthefiguresareslightlydifferentintheendingsduetoroundingandarenotcalculationerrors.
④PerformanceanalysisforstoresduringthereportingperiodDuringthereportingperiod,fordirect-operatedstores,therevenueofasinglestorewasRMB3.03million,down47.24%fromthesameperiodoflastyear;thegrossprofitofasinglestorewasRMB2.10million,down48.43%fromthesameperiodoflastyear,andtheareaefficiencyofasinglestoreswasRMB0.03million,down46.29%fromthesameperiodoflastyear;forjoint-operatedstores,therevenueofasinglestorewasRMB3.41million,down39.31%fromthesameperiodoflastyear;thegrossprofitofasinglestorewasRMB2.32million,down39.57%fromthesameperiodoflastyear,andtheareaefficiencyofasinglestoreswasRMB0.05million,down39.13%fromthesameperiodoflastyear.Thisisprimarilyduetoanexcessivedensityofstoresincertaincities,leadingtorevenuedilutionforindividualstores.Thecompanyalsohadsignificantroomforimprovementandenhancementinchannellayout,siteselection,customerflowconversion,andstoreoperationmanagement.Afteradjustingandoptimizingchannelsinthesecondhalfoftheyear,thedecreaseinsingle-storerevenue,grossprofit,andsalespersquaremeter(efficiency)wasreducedcomparedtothefirsthalfoftheyear.Additionally,theimpactofexternalmacroeconomicconditions
andthediamond-studdedmarketonthegoldproductmarketledtoanoveralldeclineincompanysales,resultinginsignificantdecreasesinsingle-storerevenue,grossprofit,andefficiencycomparedtothesameperiodlastyear.
Storerevenueandgrossprofit
Unit:RMB0’000
Classificati
on
| Classification | 2023 | 2022 | YoYchange | ||||||||||
| Aver-agenumberofstores | Sing-le-storearea㎡ | Single-storerevenue | Single-storegrossprofit | Sing-le-storeareaefficiency | Aver-agenumberofstores | Single-storearea㎡ | Single-storerevenue | Single-storegrossprofit | Single-storeareaefficiency | Single-storeRevenue | Single-storegrossprofit | Single-storeareaefficiency | |
| Direct-operated | 584 | 89.11 | 302.98 | 209.97 | 3.40 | 519 | 91.00 | 574.25 | 407.17 | 6.33 | -47.24% | -48.43% | -46.29% |
| Joint-operated | 52 | 68.29 | 340.88 | 231.95 | 4.99 | 49 | 69.00 | 561.66 | 383.84 | 8.20 | -39.31% | -39.57% | -39.13% |
Note:Theaveragenumberofstoresreferstotheaverageofthenumberofstoresattheendofeachmonthofthereportingperiod(∑numberofshopsattheendofthemonth/numberofmonths)
⑤Top10storesintermsofrevenue
Unit:RMB0’000
| No. | StoreName | Openingtime | Mode | Businessarea(㎡) | Revenue | Operatingcost | Operatingprofit |
| 1 | DRStoreinGuangzhouTianheZhengjiaPlaza | 2017/11/11 | direct-operated | 266.00 | 1,267.19 | 403.44 | -79.92 |
| 2 | DRStoreinXi'anSAGAInternationalShoppingMall | 2018/7/28 | direct-operated | 168.00 | 1,262.19 | 399.07 | 317.94 |
| 3 | DRAStoreinLanzhouCenter | 2021/6/22 | joint-operated | 83.00 | 1,112.01 | 350.82 | 404.09 |
| 4 | DRStoreinChengduIFS | 2018/1/17 | direct-operated | 93.00 | 1,063.22 | 339.52 | 334.64 |
| 5 | DRStoreinBeijingIKEALivat | 2018/7/5 | direct-operated | 60.00 | 916.63 | 288.75 | 417.94 |
| 6 | DRStoreinFuyangYingzhouWandaPlaza | 2020/11/9 | direct-operated | 111.99 | 884.20 | 256.17 | 396.22 |
| 7 | DRStoreinJinhuaYiwuZhixin | 2018/4/18 | direct-operated | 122.00 | 860.46 | 268.33 | 380.68 |
| 8 | DRStoreinLangfangWandaPlaza | 2020/8/7 | direct-operated | 98.70 | 852.29 | 265.08 | 399.54 |
| 9 | DRStoreinFoshanWangfujingZiweigang | 2020/12/30 | direct-operated | 110.00 | 795.35 | 264.00 | 327.39 |
| 10 | DRGuojinStoreinChangshaWuyiSquare | 2017/10/2 | direct-operated | 74.00 | 788.48 | 242.11 | 289.20 |
Note:Operatingprofit=revenue-operatingcosts-storeexpenses,excludingexpensessharedwiththe
headquarters.
(3)OnlinesalesduringthereportingperiodDRCOonlinebusinessismainlycarriesoutthroughownsalesplatform(i.e.DRCOportal)andthird-partysalesplatforms.Duringthereportingperiod,DRCO'srevenuefromonlinebusinesswasRMB227.09million,down42.45%fromthesameperiodlastyearandaccountingfor10.42%oftheCompany’srevenues.Specifically,therevenuefromself-ownedsalesplatformwasRMB33.73million,down53.96%fromthesameperiodlastyear;andtherevenuefromthird-partysalesplatformswasRMB193.35million,down
39.82%fromthesameperiodlastyear.AccordingtoDRCO'spurchaserules,allcustomersfromthethird-partysalesplatformsneedtoregisteronDRCO'sself-ownedsalesplatform(i.e.DRCOportal).Asoftheendofthereportingperiod,theregisteredcustomersonDRCOportaltotaledabout12.21millionincludingaround1.55millionnewonesduringthereportingperiod.In2023,thepercustomertransactiononDRCOportalwasaboutRMB5,800,down7.94%fromthesameperiodlastyear.
OnlineSales
Unit:RMB0’000
Channel
| Channel | 2023 | 2022 | YoYchange | |||||
| Salesorderamount | Revenue | As%ofonlinerevenue | Salesorderamount | Revenue | As%ofonlinerevenue | Salesorderamount | Revenue | |
| Self-ownedsalesplatform | 3,461.84 | 3,373.47 | 14.86% | 7,983.61 | 7,327.52 | 18.57% | -56.64% | -53.96% |
| Third-partysalesplatforms | 21,555.97 | 19,335.34 | 85.14% | 34,988.44 | 32,131.81 | 81.43% | -38.39% | -39.82% |
| Total | 25,017.81 | 22,708.81 | 100.00% | 42,972.05 | 39,459.33 | 100.00% | -41.78% | -42.45% |
Note1:Theself-ownedsalesplatformisDRCOportal,andthethird-partysalesplatformsincludetheflagshipstoresonTmall.comandJd.com;Note2:Thesalesorderamountisthetax-inclusiveamountplacedbythecustomersduringthereportingperiod,andtheorderswhoseproductshavebeenreturnedareexcluded.
2.ConsignedproductionmodelThankstoabundantindustrialchainresourcesanddeepeningindustrialdivisionoflabor,thecompanyadoptsalight-assetoperationstrategy,employinganoutsourcedprocessingproductionmodelforallfinishedproducts.Ononehand,leveragingexternalproductioncapabilitiesenhancesoperationalefficiency,whileontheotherhand,thecompanyfocusesonbrandbuilding,channelexpansion,productdevelopment,andsupplychainintegration,contributingtofavorableoperationalperformance.Thecompanydynamicallyadjuststheallocationoforderstosuppliersbasedonevaluationcriteriasuchassuppliercapacity,productqualificationrate,anddeliverydelayratetoensureproductqualityanddeliverydeadlines.Thecompanyhasalwaysattachedgreatimportancetoproductquality,continuouslyimprovingtheproductqualitycontrolsystem.Itimplementsprofessionalqualityinspectionpersonnelorrelatedprofessionalequipmentcontrolinvariousstagessuchasrawmaterialprocurement,outsourcedproduction,andproductcirculation.
Additionally,allproductssoldtoendconsumersundergotestingbynational-levelthird-partyinspectionagenciesandareequippedwithrelevantprofessionalcertificates.
3.ProcurementmodeInordertoensurestandardizedandqualityrawmaterialprocurement,DRCO'ssupplychaindepartmentisfullyresponsibleforpurchasingrawmaterials,mainlyendproductdiamonds.DRCOformulatesandimplementsprocurementplansbasedonbusinessdemands,inventoryandshort-termmarketpricetrends.Duringthereportingperiod,theCompanyintroducednewservicesingoldleasingandplatinumprocurement.Forthegoldleasingservice,theCompanyleasesphysicalgoldfromabankforaspecifiedperiod,andreturnsgoldwiththesamequantityandtypetothebankandpaystheleasingfeesuponmaturityaspertheagreement.
(1)MajorprocurementsduringthereportingperiodDuringthereportingperiod,thetotalprocurementamountforthecompany'smainrawmaterialsandcommissionedprocessingwasRMB517.52million,adecreaseof59.79%comparedtothesameperiodlastyear.Thisdecreaseismainlyattributedtothedeclineincompanyperformanceandthedecreaseinnewstoreopenings,thedemandforgoodspreparationhasdecreased.Outofthistotal,goldprocurementamountedtoRMB58.59million,whichisgoldleasedbythecompanyfrombanks.DiamondprocurementamountedtoRMB252.14million,adecreaseof50.47%comparedtothesameperiodlastyear.ThetotalamountforcommissionedprocessingprocurementwasRMB200.23million,adecreaseof74.26%comparedtothesameperiodlastyear.Theproportionofcommissionedprocessingprocurementdecreasedby21.76%comparedtothesameperiodlastyear.Thisadjustmentismainlyduetothecompany'seffortstofurtherreduceprocurementcosts,improveprocurementefficiencyandeffectivenessbyrestructuringitsprocurement.Duringthereportingperiod,somejewelrymaterialsthatwerepreviouslyprovidedbyexternalprocessingvendorswerechangedtobesuppliedbythecompanytoexternalprocessingvendors.Additionally,thecompanytransitionedmostofthediamondswithaweightof0.03caratsandbelowfrombeingprovidedbyexternalprocessingvendorstobeingpurchaseddirectlybythecompany..Majorprocurementduringthereportingperiod
Unit:RMB0’000
Item
| Item | 2023 | 2022 | YoYchange | ||
| Purchaseamount | As%oftotalpurchases | Purchaseamount | As%oftotalpurchases | ||
| Diamond | 25,214.39 | 48.72% | 50,902.86 | 39.55% | -50.47% |
| Goldleasing | 5,858.99 | 11.32% | - | - | - |
| Platinum | 655.89 | 1.27% | - | - | - |
| Consignedprocessing | 20,022.91 | 38.69% | 77,796.66 | 60.45% | -74.26% |
| Total | 51,752.18 | 100.00% | 128,699.52 | 100.00% | -59.79% |
Note1:Thepurchaseamountinthetableisbasedonthepriceexcludingtax.Note2:Thepurchaseofdiamondsincludesbothfinishedandroughdiamond.
(2)PurchasechannelsandquantitiesofdiamondsandgoldasthemainrawmaterialduringthereportingperiodDuringthereportingperiod,DRCO'sfinisheddiamondsaremainlysourcedfromoverseasanddomesticmarkets,andallofthemwerecheckedbythesupplychaindepartmentbeforebeingstored.Foroverseaspurchases,HongKongDRGROUPisresponsibleforpurchasesfromoverseassuppliers,andthenShanghaiDarry,amemberofShanghaiDiamondExchange,isinchargeofthecustomclearance.DRCOalsopurchasesfinisheddiamondsdirectlyfromdomesticdiamondsuppliersortheiraffiliates,whicharemembersoftheShanghaiDiamondExchange.Duringthereportingperiod,thecompany'smainrawmaterialdiamondprocurementquantitywas42,334.59carats,adecreaseof36.97%comparedtothesameperiodlastyear.Thetotalamountofgoldpurchasedduringthereportingperiodwas148,000grams.Purchasechannelsandquantitiesofdiamondsandgoldasthemainrawmaterialduringthereportingperiod
Item
| Item | Unit | PurchaseChannel | 2023 | 2022 | YoYchange | ||
| Purchasequantity | As%oftotalpurchase | Purchasequantity | As%oftotalpurchase | ||||
| Diamond | Carat | Domesticmarket | 31,868.89 | 75.28% | 52,812.15 | 78.63% | -39.66% |
| Overseasmarkets | 10,465.70 | 24.72% | 14,350.32 | 21.37% | -27.07% | ||
| Total | 42,334.59 | 100.00% | 67,162.47 | 100.00% | -36.97% | ||
| Gold | Gram | Leasing | 148,000.00 | 100.00% | - | - | - |
| Platinum | Gram | Purchase | 33,284.10 | 100.00% | - | - | - |
Note:Thepurchaseofdiamondsincludesbothfinishedandroughdiamond.
(3)Purchasequantityforconsignedprocessingduringthereportingperiod.Duringthereportingperiod,thepurchasequantityofDRCO'sconsignedprocessingbusinessdroppedbecauseofthedeclineofDRCO’ssalesperformanceandlowerdemandfornewstores.
| Item | Unit | 2023 | 2022 | YoYchange | ||
| Purchasequantity | Purchasequantity | Purchasequantity | Purchasequantity | |||
| Consignedprocessing | Pieces | 302,042.00 | 100.00% | 616,308.00 | 100.00% | -50.99% |
Note:Theabovepurchasequantitydoesnotincludeproductaccessories(e.g.,earringnuts,chaintailtags).
(4)InventoriesduringthereportingperiodDuringthereportingperiod,thecompany'sinventoryconsistedofrawmaterials,workinprogress,finished
goods,materialsforcommissionedprocessing,goodsdispatched,andoperatingsupplies,withrawmaterialsandfinishedgoodsbeingthemaincomponents.Asoftheendofthereportingperiod,thebalanceofinventorywasRMB537.18million.Duringthereportingperiod,aprovisionforinventorydepreciationofRMB
10.24millionwasrecorded,resultinginanetbookvalueofinventoryofRMB526.94million.Theend-of-periodbalanceforrawmaterialswasRMB126.51million,adecreaseof6.06%comparedtothebeginningoftheperiod.Theend-of-periodbalanceforworkinprogresswasRMB4.02million,anincreaseof42.18%comparedtothebeginningoftheperiod,mainlyduetoanincreaseindismantledgoodsawaitingprocessing.Theend-of-periodbalanceforfinishedgoodswasRMB392.19million,adecreaseof24.00%comparedtothebeginningoftheperiod.Theend-of-periodbalanceformaterialsforcommissionedprocessingwasRMB11.43million,adecreaseof30.64%comparedtothebeginningoftheperiod,mainlyduetotheimpactofdecliningsalesperformance.Theend-of-periodbalanceforgoodsdispatchedwasRMB
0.32million,adecreaseof73.65%comparedtothebeginningoftheperiod,mainlyduetoareductionininventoryawaitingdeliverytocustomers.Theend-of-periodbalanceforoperatingsupplieswasRMB2.71million,adecreaseof47.66%comparedtothebeginningoftheperiod.InventoryBreakdownasoftheEndofReportingPeriod
Unit:RMB0’000
Item
| Item | December31,2023 | December31,2022 | YoYchange | ||
| Amount | % | Amount | % | ||
| Rawmaterials | 12,650.75 | 23.55% | 13,467.14 | 19.91% | -6.06% |
| Workinprocess | 401.57 | 0.75% | 282.43 | 0.42% | 42.18% |
| Finishedgoods | 39,219.00 | 73.01% | 51,604.41 | 76.29% | -24.00% |
| Outsourcedprocessingmaterials | 1,143.18 | 2.13% | 1,648.25 | 2.44% | -30.64% |
| Shippinggoods | 31.86 | 0.06% | 120.93 | 0.18% | -73.65% |
| Turnovermaterials | 271.32 | 0.51% | 518.34 | 0.77% | -47.66% |
| Total | 53,717.68 | 100.00% | 67,641.50 | 100.00% | -20.58% |
Note:Theabovefiguresareroundedtotwodecimalplaces.Someofthefiguresareslightlydifferentintheendingsduetoroundingandarenotcalculationerrors.III.AnalysisofCoreCompetitivenessWithoriginalaspirationofexpressionoftruelove,DRCOhasbuiltupthelong-termcompetitivenessonthestrategicpositioningofintegratingbrand,channelsandproducts.The"DR"brandrepresentstheconceptof"thesoletrueloveinonelife"andpurchaseintentionforeternallover,infusinguniqueemotionalassociationsandvaluepropositionintoengagementringsandhenceenjoyingspecialbrandadvantageintheindustry.Intheeraofnewretailing,DRCOseizestheopportunityofconsumptionandtechnologyupgradingtocreatea
modern,efficientandconsumer-orientedDTC(direct-to-consumer)operationmodelthroughmobileInternet.Wealsofullyleveragevariousnewmediasuchassocialplatforms,videomedia,e-commerceplatformsandsearchenginestoconveybrandconnotationstoconsumers.Inaddition,theCompanyplacesastrongemphasisonproductdesign,craftsmanship,andquality.WecollaboratewithrenownedjewelrydesignersfrombothdomesticandinternationalmarketsthroughourParisDesignCentertocreatetruelovejewelrypiecesforcustomersfromaglobalperspective.(I)AdvantageoftheemotionalconnotationofthebrandIn2023,theCompany'sbrandmissionwasupgradedfrom"EmpoweringMoreBeautifulLove"to"helpingmorepeopleexpresslove,makinglovelastforever".Inthisbustlingandrestlesstimeseekingforefficiency,wealthandvalue,theCompanystickstothevaluesof“thesoletrueloveinonelife”highlyinlinewiththepeople’pursuitofenduring,exclusive,andgenuinelove,whichresultsinuniqueemotionalconnotationofDRbrand.DRengagementringscanbeexclusivelyboundedwiththecouplesbyuploadingtheirIDinformationtoblockchaininsteadofjustengravingnames.Suchdiamondringsarekindoftestamenttotheoneandonlytrueloveandsatisfyconsumers’emotionalneedforfidelityandlifelongloveratherthansimpleestheticpreferencesforjewelry.Inthisway,theuniqueDRengagementringsevokespecialemotionalconnotationamongcustomersandhavedifferentiationcomparedtosimilarproducts.(II)AdvantageofbeinglovedbyfansDRbrandboastsahostofactivefanbase,includingover30millionfollowersfromwell-knownsocialplatformslikeWeibo,WeChat,TikTok,KuaishouandXiaohongshu,especiallyoverseasTikTokachievesmorethan580,000followers.Hence,DRbrandisevaluatedas"themostrecognizedjewelrybrandamongtheyouth".DRbrandiswellpositionedforloveandlifestyleinverticalsegmentsandattachesimportancetotheconsumer’sexperienceintruelove.Wedevotetodiversifyingandimprovingtheexperienceandceremonialsenseinconsumption.AgreatnumberoffansandconsumersspontaneouslyspreadourbrandphilosophybypostingtheirlovestoriesandhighlightmomentsthroughWeibo,WeChatMomentsandshortvideos,becomingourbrandspokespersonsandresultinginaviraleffectonDRbrandpromotion.(III)OperationalAdvantageofOmnichannelDTCTheCompanyisanomni-channelDTCmodelcombiningofflinestoreswithonlineoperation.Astotheofflinesales,DRCOadherestoproprietaryoperationtoensureconsistentlyexcellentconsumerexperience.Duringthereportingperiod,theCompanyactivelyadjustedandoptimizedthechannelstrategyinaccordancewiththechangesinbusinesscircles,matchingwithcustomerbasesandbrandpositioning.Ontheotherhand,DRCOseizestheopportunityofconsumptionandtechnologyupgradinginthenewretaileratoestablishonlinemodernandefficientbrandoperationmodelthroughmobileInternet.Byintegratingsocialplatforms,videomedia,E-platformsandsearchengines,weconstantlypushbrandpromotionandonlinebusinesstopublicizebrandproposition.Inaddition,DRCOTrueLoveecosystemhasbeenestablishedthroughDTCmodel,composingofcoreandmasscustomers,suppliersandpartners.It’saimedtodemonstrateidealjourneyoftrueloveandlaysolidfoundationforofferingproductsandservicesinalongruntothecorecustomers.
(IV)Advantageoflightcustomizationandlightasset
ThecustomizedmarketingisadoptedbyDRCO,enablingourcustomerstoselectfavoredjewelryanddefine4Csofdiamondquality(e.g.cut,color,clarity,andcarat),ringsettingmaterial,fingersize,personalizedengraving,etc.thiscustomizedmarketingcannotonlymeetthecouples’psychologicalneedforsolelove,butalsofacilitateustocontrolinventorylevel,keeplowercostsandsoundcashflow,andfinallyimprovebusinessoperatingefficiency.Asjewelryproductsaremoresensitivetofashiontrend,thecustomizedmarketingallowsDRCOtorapidlyrespondtomarketchangesandkeepupwithnewfashion.(V)AdvantageinproductdesignandinnovationWiththespiritofinnovationandcraftmanship,DRCOiscommittedtocreatinghigh-qualityproductsthathighlightsromance,maximalismandlongevity,anddeliveringmulti-dimensionalofferingsthatmergeandexpandwithemotional,fashionandbrandelements.InDRParisDesignCenter,alotofworldwidefamousjewelrymastersworktogetheratprecioustrue-lovejewelswiththeirglobalperspective,exceptionaldesigninspirationandskillfultechnique.Additionally,wecontinuoustoevolveproductqualityandprocessingbyconstantlydevelopingandoptimizingourpatentedproducts.DRCOhaswonahostofprestigiousdesignawardsathomeandabroad,andcurrentlypossessesmorethan200nationalpatents,faraheadoftheindustryaverage.
IV.AnalysisofMainBusiness
1.Overview(I)OverviewofoperatingperformanceinthereportingperiodIn2023,theCompany'snetprofitattributabletoshareholdersofthelistedcompanywasRMB68.96million,adecreaseof90.54%overthesameperiodofthepreviousyear,whichwasmainlybecause:1)affectedbythemarketsituationandconsumerdemand,theCompany'soperatingincomedroppedby40.78%toRMB2,180.28millionoverthesameperiodofthepreviousyear;and2)theCompanyproactivelyadjusteditschannelstrategyandclosed184storesduringthereportingperiod.Accordingtotheprincipleofprudence,theCompanymadeanassetimpairmentlossofRMB92.46millionforstoresshowingsignsofimpairmentbasedontheresultsofimpairmentcalculation,whichrepresentedanincreaseof282.34%overthesameperiodofthepreviousyear;meanwhile,duetotheearlyclosureofstores,thelossofleasedepositthatcouldnotberecoveredamountedtoRMB16.31million,representinganincreaseof3,956.16%overthesameperiodofthepreviousyear;(3)Theinvestmentincomeandgain/lossonchangesinfairvaluefrominvestmentinwealthmanagementproductsduringthereportingperiodwasRMB232.61million,representinganincreaseof81.31%overthesameperiodofthepreviousyear;4)theforegoingmatterscombinedresultedinadecreaseinthetotalprofitsascomparedwiththesameperiodofthepreviousyear,andtheCompanyaccruedcorporateincometaxexpenseofRMB43.87million,adecreaseof71.90%ascomparedwiththesameperiodofthepreviousyear.Duringthereportingperiod,theCompany'snetprofitsafternon-recurringgainsandlosseswasRMB-
120.48million,adecreaseof119.65%comparedwiththesameperiodofthepreviousyear.Theimpactofnon-recurringgainsandlossesontheCompany'snetprofitswasRMB189.44million,whichwasmainlythe
gainsandlossesonchangesinthefairvalueoftradingfinancialassetsandtheinvestmentincomefromwealthmanagementproducts.(II)Overviewofbusinessoperationmanagementduringthereportingperiod
(1)Constantlybuildbrandpowerwithoriginalaspiration
①TheTrueLovePublicWelfareInitiativecontinuesitsinfluence,triggeringnearly400millionengagementsworldwideandsettinganexampleoftruelove.Inearly2023,thecompanylaunchedapublicwelfareinitiativewithathemeof"Searchfor100DiamondWeddingCouplesAroundtheWorld".Bytheendoftheyear,wevisitedandpresentedthestoriesof100diamondweddingcouplesin26cities,andinvitedmanymediaandthepublictoparticipateinthistruelovejourney.Ittriggerednearly400millioninteractionsworldwide.Wedeeplybelievethateveryonedeservesauniqueandlifelonglove.Leveragingthegenuinestoriesofloveenduringthroughtheyears,weuseourbrand'sinfluencetocontinueadvocatingforthepositiveenergyoflove.ThroughthedelayedceremonialsensefromDRdiamondrings,wehelpedtheseelderlycouplesrealizetheirromancedreamthatwasimpossibleintheprevioustime.Throughourefforts,theywereabletorediscoverromanceintheirlateryears,feelingcareandrespectfromthecommunity.ItnotonlyhighlightsthesenseofsocialresponsibilityofDRasafamousbrand,butalsoconsolidatestheCompany'ssocialimageasa"globalleaderoftrueloveculture".Throughthispublicwelfareinitiative,theconceptof"thesoletrueloveinonelife"advocatedbytheCompanyhasalsobeenhighlyrecognizedinthesociety,andempowerstheyounggenerationwiththecourageandstrengthtopursuetrueloveintheimpatientera.Wewillcontinuetoworkhardtouseourproductsandservicestoconveytheconceptoftruelove,sothatmorepeoplecanfeelthebeautyandpoweroflove.
②TrueLoveAcademyjoinedhandswithFanshutoadvocatethetruelovepropositionDuringthereportingperiod,theCompany,byvirtueofitsleadingpositionintheindustryanddeep
accumulationofbrandresources,foundedtheTrueLoveAcademy,aimingatexploringandresearchingtheessenceoftruelove.Focusingonthecurrentsituationofmarriageanddatingandpayingattentiontosocialtopicssuchasthedifficultyofyoungpeopletofallinlove,theCompany,togetherwiththewell-knownreadingbrandFanshu(formerlyFanDengReadingClub),heldanofflineintimaterelationshipsharingsessionentitled"LoveisanAbility"forourfansinthehopeofexploringloveandmarriagewithamoreprofessionalandscientificattitudeandeasingthemodernpeople'sanxietiesanduneasinessabouttheirrelationships.ThesharingsessioninvitedLiangYongan,aprofessorfromFudanUniversity,tointeractwithChristopherMeng,theauthorofIntimacy,onthespot,aimingtohelpaddressyoungpeople'sloveconfusionbasedontheiractualneedssoastoprovidethemwithsomepracticalhelpthroughmorein-depthinteractiveexchangesoffline.Atthesametime,DRCOalsojoinedforceswithFanshutointroducealistaboutbooksontheintimaterelationships,sharingthecontentofMr.FanDeng'spersonalreadingaboutthebooksforfreeforalimitedperiodoftimetomoregroupswhoaretroubledbyintimaterelationships,inthehopethateverypairoflovecouplesthatshouldhavecometotheendoftimewillnotregretduetothescarcity,andwillreapthewisdomandcouragetoloveonepersonwiththeirwholelifethroughcontinuouslearningoftheabilitytoloveandtobeloved.
③OntheQixiFestival(ChineseValentine'sDay),DRCOprovidedemergencyrosesdomesticallyandinternationally,servingasaculturalambassadorbypromotingtraditionalChinesecultureworldwide.DuringtheQixiFestivalin2023,theCompanyprepared"EmergencyRoses"invariouslocationssuchastheEiffelTower,theLouvre,andalongtheSeineRiverinParis,France,aimingtoencouragingyoungcouplestoexpresstheirlovetoeachotherbravelyontheQixiDay.UsingemergencyrosesasamediumandpromotingQixiFestivalculture,theDRCObroughttheFrenchpeopleinanimmersiveexperienceoftheChineseValentine'sDay,conveyingthebrandconceptof"trueloveknowsnoboundaries."ThiseventshowcasedtheCompany'sbrandasabridgeforthespiritoftruelove,shoulderingtheresponsibilityofamajornationalbrand.TheeffortaimedtopromotetheChinesetraditionalculturalfestivals,facilitatetheglobalizationofChineseculture,andbringthebrandintotheinternationalspotlight.
④Constructingacliffauditoriumwiththeartofredthread,creatingtraditionalChineseaesthetics,andconveyingthefaithoftruelovewithcraftsmanshipDuringthereportingperiod,theCompanyinheritedandpromotedChinesecultureunderthethemeof"RedThread".OntheQixiFestival,theCompanyutilizedtheredthreadasamediumcloselyassociatedwithitsbrandtocreatetheDRcliffauditoriuminDali,blendingtraditionalChineseandWesternlovesymbols.Theconceptoftheredthreadconsistentlyembodiesthebeliefof"thesoletrueloveinonelife",continuouslyspreadingthebrand'strueloveconcept.Throughthehigh-profileofflinecheck-inactivities,theCompanyexpandeditsuserbase,demonstratingthebrand'sphilosophyof"thesoletrueloveinonelife".Thisstrategyenhanceduserengagementandexperience,reachingtheusersonadeeperlevelandincreasingbrandfavorability.TheDRcliffauditoriumpromotedthebrandbycombiningonlineandofflineactivities,providinguserswithatangibleandvirtualexperience.Therelatedtopicswereplayedformorethan27milliontimes,completingthetransitionofthebrandfromspiritualbuildingtophysicalarchitecture.Thisinitiativenotonlybecameoneofthebrand'stangibleassetsbutalsoestablishedanewandpowerfulsymbolinthebrand'smemory.
⑤Cultivatethemissionofthebrand,developinsightsintothenewmediatrends,andinnovatethemodeofshortvideosIn2023,theCompany'snewmediabaseshiftedfromaccountstoplatformstorisetothechallengeoflargermarkettrafficcapacity.OurtrafficcoversallmainstreamplatformssuchasDouyin,Kuaishou,Xiaohongshu,andWeChatVideoAccount.OntheWeChatVideoAccount,DRCoproducedseveralvideoswith100,000+likes,exposingourbrandformorethan1.1billiontimes.Ourbrandenjoysstrongloyaltyandstickiness.Inaddition,ourlivesalesontheDouyinplatformhitanewhigh,withaYoYgrowthofover300%in2023.
(2)Focusonimprovingtheoperationqualityofstores,andoptimizingandupgradingchannelsDuringthereportingperiod,basedontheupgradingoftheoverallbrandstrategy,theCompanytooktheinitiativetoadjustitschannelstrategytoenhanceourbrandimageandserviceexperience.Focusingonimprovingtheoperationqualityandprofitabilityofstores,theCompanyoptimizedandupgradedtheexistingchannels.Afterconductinganall-roundinventoryofallstores,theCompanytooktheinitiativetoclose,relocateandreplacesomestoreswithlowpotentialorinconsistentwiththebrandimagetofurtherimprovethechannelnetworkandoptimizethechannelupgrading,andmadeeveryefforttoconsolidateresourcestoenterhigh-potentialbusinesscirclesandcreateurbanbenchmarkflagshipstores,suchasXi'anSKPstoreandChangshaIFSstore.Toenhancebrandmomentum,attractonlineandofflinetraffic,andincreasetheinfluenceofindividualstoreswhileprovidingcustomerswithanimprovedserviceexperienceandabetterambiance,thecompanybeganimplementingaplaninthesecondhalfof2023tooptimizeandupgradeexistingstorespaceswithanewimage.Theprogramfocusedonthecultureoftrueloveandthesenseofbrandceremony,andusedthestorespaceasanimportanttouchpointforbrandcontent,interactiveceremonyandcustomerexperience,creatinganimmersivespacefortryingonandexperiencingtruelovebycreatingarelaxed,comfortableandenjoyablelightFrenchromanticdesignstyle.Atthesametime,thecompanyandotherbrandsjointlyheldonlineandofflineactivitiestoattractuserstoofflinestores:onlineactivitieshelpedpromoteprivatecommunityactivities,whileofflineactivitiesgeneratedtrafficandattracteduserstoonlinechannels.
(3)InnovateandupgradeproductcraftsmanshiptocreatetokensoflovewithusingutmostartisanalskillsPlacinghighimportanceonuserneeds,theCompanycollaborateswithrenownedinternationaljewelrydesignerstodevelopjewelryproductsandconsistentlydrivesinnovationandimprovementinproductcraftsmanship.Byenrichingandenhancingproductstructurescontinuously,DRCOmeticulouslycraftseachpieceoftrueloveworkwithauniqueaestheticapproachandstringentcraftsmanshipstandards.Intermsofmaterialinnovation,theCompanyinventedthedouble-layerelectroplatingprocessfor18Kwhitegold.Thistechniqueensuresthattheplatinglayerisfirmlyfixedtothe18Kbasematerial,whichreducesthewearoftheplatinglayerandguaranteesthedurabilityandcolorretentionoftheproduct.The18Kwhitegolddouble-layerelectroplatingprocesshasbeencertifiedbynationalauthoritativetestingagencies,anditsauthenticity,wearresistance,andresistancetoacidandalkalicorrosionmeetinternationallyrecognizedstandards.Duringthereportingperiod,theCompanycollaboratedwithmasterartisansfromtheFlorenceworkshopinItalytodeveloptheDRHEART"ItalianMasterpieceEngagementRing"seriescalled"TiAmo".ThecraftsmenoftheItalianworkshop,whohaveinherited60yearsofexcellenceinjewelrycraftsmanship,usedawovengoldcarvingtechniquetopresenttheancientartofgoldjewelryandcarvinginanartisticmanner,creatingengagementringswithastylereminiscentoftheRenaissanceperiod;in2023,theuniqueDSeriespieceswithdistinctiveDRbrandcharacteristicsweredevelopedandlaunched.Theentireseriesiscraftedwithhighqualitydiamondsandhasreceivednumerousawardsathomeandabroad,includingtheFrenchDesignAward,theMUSEGoldAward,andtheBronzePrizeofInternationalDesignAwards.DRBridalGoldinheritstheessenceofthetraditionalChineseweddingculture,andintegratesthedesignconceptsandadvancedtechnologyoffashionaljewelryintohigh-qualitygoldjewelry,witheachpiececontainingtheauspicioussymbolsoftraditionalculture.Duringthereportingperiod,theCompanycooperatedwithChengShumei,amastercraftsmanofintangibleculturalheritage,whosupervisedthecreationofthetimelessmasterpiece-goldseriesfeaturingthefiligreeinlayproductionskill,atechniqueofintangibleculturalheritage.ThisnewofferingdemonstratestheoriginalspiritoftheCompany'sbrand.
(4)Strengtheninformationsecurity,empowerbusinessdevelopmentwithAI,buildsmartstoresDuringthereportingperiod,theCompanyactivelyparticipatedinindustrysecurityoperationtrainingsessionsandseminars,andcontinuedtostrengtheninternalinformationsecurityconstruction,andsafeguardedtheCompany'sinformationsecurityanduserprivacyinallaspectsbycarryingouttrainingon
informationsecuritysystemandsecurityawareness,formulatingcodingsecurityspecifications,andholdingnetworkattackanddefensedrills.InaccordancewiththeMeasuresfortheAdministrationofMulti-LevelInformationSecurityProtection,theCompanyconductedanannualassessmentoftheprotectionofclassifiedinformation,andtherelevantapplicationsystemssuccessfullypassedtheLevel3protectionassessment.Followingthetrendofdigitalinnovationtechnology,theCompanycombinedthegenerativecapabilityoflargemodelswithofflineretailscenariostoprovidedigitalsupportforserviceprocessesofstorestherebyenhancingtheexpertise,memoryandcommunicationcapabilityofthestaffatstoresandenablingsmartstores;basedonthedemandforbusinessimprovementandefficiencyenhancement,theCompanyusedAItoempoweranumberofbusinesslinkssuchasthemultilingualAIcustomerservicetoolforoverseasbusiness.
(5)PromoteorganizationaltransformationandbuildtalentechelonDRCO’stalentechelonstrategyprovidessolidsupportforits"sustainable"and"high-quality"development.TheCompanycontinuallyenhancesitstalentassessmentsystem,utilizingamulti-dimensionalcompetencymodelfortalentevaluationandestablishinginnovativecriteriafortalentselectionandemployment.Mechanismshavebeenputinplacetoattract,develop,andretainadiverseanddedicatedworkforce.Duringthereportingperiod,inalignmentwithbusinessgrowth,theCompanycontinuouslyoptimizeditsorganizationalstructureandpersonnelcomposition,clearlydefiningdepartmentalresponsibilities,establishingmanagementincentivemechanisms,reducinghumanresourcemanagementcosts,andenhancingoverallorganizationalefficiency.InlinewiththeCompany’sfuturestrategicplanning,newbusinessdepartmentswererapidlyestablishedandputintooperation,whichprovidedalargetalentpoolforthenewdirectionsin2024therebydrivingtheCompany’srobustbusinessdevelopment.forthenewdirectionin2024toensureswiftprogressinbusinessdevelopment.
2.Revenueandcost
(1)CompositionofrevenueOverallrevenue
Unit:RMB
2023
| 2023 | 2022 | YoYchange | |||
| Amount | As%ofrevenue | Amount | As%ofrevenue | ||
| Totalrevenue | 2,180,277,744.00 | 100% | 3,681,574,412.68 | 100% | -40.78% |
| Byindustry | |||||
| Jewelry | 2,173,757,035.39 | 99.70% | 3,650,181,354.03 | 99.15% | -40.45% |
| Otherbusinesses | 6,520,708.61 | 0.30% | 31,393,058.65 | 0.85% | -79.23% |
| Byproduct | |||||
| Engagementdiamondrings | 1,699,139,354.11 | 77.93% | 2,902,464,272.49 | 78.84% | -41.46% |
| Weddingdiamondrings | 449,380,892.69 | 20.61% | 713,611,440.73 | 19.38% | -37.03% |
Otheraccessories
| Otheraccessories | 25,236,788.59 | 1.16% | 34,105,640.81 | 0.93% | -26.00% |
| Otherbusinesses | 6,520,708.61 | 0.30% | 31,393,058.65 | 0.85% | -79.23% |
EastChina
| EastChina | 744,028,070.54 | 34.13% | 1,330,407,724.72 | 36.14% | -44.08% |
| NorthChina | 322,536,502.42 | 14.79% | 494,723,176.92 | 13.44% | -34.80% |
| SouthChina | 301,661,875.55 | 13.84% | 569,475,102.89 | 15.47% | -47.03% |
| SouthwestChina | 255,457,360.25 | 11.72% | 403,596,567.80 | 10.96% | -36.70% |
| CentralChina | 204,328,898.81 | 9.37% | 385,624,889.68 | 10.47% | -47.01% |
| NorthwestChina | 175,768,057.06 | 8.06% | 254,084,920.53 | 6.90% | -30.82% |
| NortheastChina | 164,396,516.08 | 7.54% | 236,390,244.31 | 6.42% | -30.46% |
| HongKong,MacaoandTaiwan | 6,212,560.22 | 0.28% | 5,045,201.05 | 0.14% | 23.14% |
| Overseas | 5,887,903.07 | 0.27% | 2,226,584.78 | 0.06% | 164.44% |
OnlineSelf-Operated
| OnlineSelf-Operated | 227,088,072.66 | 10.42% | 394,593,297.77 | 10.72% | -42.45% |
| OfflineDirect-operated | 1,769,414,000.22 | 81.16% | 2,980,373,391.95 | 80.95% | -40.63% |
| OfflineJoint-Operated | 177,254,962.51 | 8.13% | 275,214,664.31 | 7.48% | -35.59% |
| Otherbusinesses | 6,520,708.61 | 0.30% | 31,393,058.65 | 0.85% | -79.23% |
(2)Industries,products,regions,andsalesmodelsthataccountformorethan10%ofDRCO'srevenueoroperatingprofit?Applicable□Notapplicable
Unit:RMB
| Revenue | Operatingcosts | Grossmargin | YoYchangeofrevenue | YoYchangeofoperatingcost | YoYchangeofgrossmargin | |
| Byindustry | ||||||
| Jewelry | 2,173,757,035.39 | 675,742,928.54 | 68.91% | -40.45% | -37.59% | -1.43% |
| Byproduct | ||||||
| Engagementdiamondrings | 1,699,139,354.11 | 506,538,634.64 | 70.19% | -41.46% | -38.14% | -1.60% |
| Weddingdiamondrings | 449,380,892.69 | 158,007,633.73 | 64.84% | -37.03% | -36.88% | -0.08% |
| Byregion | ||||||
| EastChina | 744,028,070.54 | 232,330,826.88 | 68.77% | -44.08% | -43.30% | -0.43% |
| NorthChina | 322,536,502.42 | 100,505,394.43 | 68.84% | -34.80% | -33.90% | -0.42% |
| SouthChina | 301,661,875.55 | 97,471,182.41 | 67.69% | -47.03% | -40.58% | -3.51% |
SouthwestChina
| SouthwestChina | 255,457,360.25 | 76,828,781.06 | 69.93% | -36.70% | -35.86% | -0.39% |
| Bysalesmodel | ||||||
| OnlineSelf-Operated | 227,088,072.66 | 75,894,918.38 | 66.58% | -42.45% | -40.93% | -0.86% |
| OfflineDirect-Operated | 1,769,414,000.22 | 543,205,041.64 | 69.30% | -40.63% | -37.36% | -1.60% |
IntheeventthatthestatisticalcaliberofDRCO'smainbusinessdataisadjustedduringthereportingperiod,DRCO'smainbusinessdataforthemostrecentyearhasbeenadjustedaccordingtothecaliberattheendofthereportingperiod
□Applicable?Notapplicable
(3)WhetherDRCO'ssalesrevenuefromphysicalgoodsismorethanthatfromservices?Yes□No
| Industryclassification | Item | Unit | 2023 | 2022 | YoYchange |
| Jewelry | Sales | Pieces | 360,990 | 517,656 | -30.26% |
| Production | |||||
| Inventory | Pieces | 225,982 | 284,930 | -20.69% | |
| Procurementvolume | Pieces | 302,042 | 616,308 | -50.99% |
ExplanationofthereasonsfortheYoYchangeofover30%inrelevantdata?Applicable□NotapplicableNote1:Theabovestatisticsdonotincludeproductaccessories(e.g.,earringnuts,chaintailtags),andsalesstatisticsincludeafter-salesandmoltengoldservices.Note2:Theprocurementvolumeduringthereportingperioddropped50.99%yearonyearduetothedecliningdemandsforinventoriesasaresultofthedecreaseinsales.
(4)PerformanceofmaterialsalescontractsandpurchasecontractssignedbyDRCOasofthereportingperiod
□Applicable?Notapplicable
(5)CompositionofoperatingcostIndustryandproductclassification
Unit:RMB
| Industryclassification | Item | 2023 | 2022 | YoYchange | ||
| Amount | As%ofoperatingcost | Amount | As%ofoperatingcost | |||
| Jewelry | Operatingcost | 675,742,928.54 | 99.44% | 1,082,800,171.20 | 97.35% | -37.59% |
Otherbusinesses
| Otherbusinesses | Operatingcost | 3,810,329.34 | 0.56% | 29,472,295.09 | 2.65% | -87.07% |
Unit:RMB
| Industryclassification | Item | 2023 | 2022 | YoYchange | ||
| Amount | As%ofoperatingcost | Amount | As%ofoperatingcost | |||
| Engagementdiamondring | Operatingcost | 506,538,634.64 | 74.54% | 818,862,367.00 | 73.62% | -38.14% |
| Weddingdiamondring | Operatingcost | 158,007,633.73 | 23.25% | 250,339,820.40 | 22.51% | -36.88% |
| Otheraccessories | Operatingcost | 11,196,660.17 | 1.65% | 13,597,983.80 | 1.22% | -17.66% |
| Otherbusinesses | Operatingcost | 3,810,329.34 | 0.56% | 29,472,295.09 | 2.65% | -87.07% |
Note:
ThetotaloperatingcostinthereportingperiodwasRMB680million,adecreaseof38.9%comparedwiththesameperiodlastyear,mainlyduetothedecreaseof40.78%inDRCO'srevenueinthereportingperiod.
(6)Whethertherewasachangeinthescopeofconsolidationduringthereportingperiod?Yes□NoDuringthereportingperiod,theCompanyestablished10newsubsidiaries/sub-subsidiariesanddissolved8subsidiaries.Detailsareasfollows:
| Companyname | Dateofestablishment/Deregistration | Methodforchangingtheconsolidationscope | Shareholdingratio |
| He’erCulture(Hainan)Co.,Ltd. | 2023/05/29 | Newin2023 | 100% |
| ShenzhenDRJewelrySales | 2023/07/21 | Newin2023 | 100% |
| ForeverTrueLoveWeddingPlanning(Shenzhen) | 2023/07/21 | Newin2023 | 100% |
| HappyLovePhycologyResearchCenter(Shenzhen) | 2023/10/19 | Newin2023 | 100% |
| ForeverTrueLoveWeddingPlanning(Sanya) | 2023/11/06 | Newin2023 | 100% |
DRLUXURY(SINGAPORE)PTE.LTD.
| DRLUXURY(SINGAPORE)PTE.LTD. | 2023/6/9 | Newin2023 | 100% |
| DRLuxuryNetherlandsHoldingB.V. | 2023/6/19 | Newin2023 | 100% |
| LOVEMONT（MALAYSIA）SDN.BHD. | 2023/6/20 | Newin2023 | 100% |
| DRLUXURYUSAINC | 2023/6/24 | Newin2023 | 100% |
| LOVEMONTHONGKONGLIMITED | 2023/7/27 | Newin2023 | 100% |
| ShangqiuDRJewelry | 2023/10/13 | Deregisteredin2023 | 100% |
| WuhanDRJewelry | 2023/10/26 | Deregisteredin2023 | 100% |
| NanchangDRJewelry | 2023/10/17 | Deregisteredin2023 | 100% |
| HandanDRJewelry | 2023/10/8 | Deregisteredin2023 | 100% |
| GuangzhouDRJewelry | 2023/10/23 | Deregisteredin2023 | 100% |
| LangfangDRJewelry | 2023/10/19 | Deregisteredin2023 | 100% |
| FoshanDRJewelry | 2023/12/27 | Deregisteredin2023 | 100% |
| UrumqiDRJewelry | 2023/12/25 | Deregisteredin2023 | 100% |
(7)SignificantchangesoradjustmentsinDRCO'sbusiness,productsorservicesduringthereportingperiod
□Applicable?Notapplicable
(8)KeysalescustomersandsuppliersMajorsalescustomersofDRCO
| Totalsalesamountofthetopfivecustomers(RMB) | 2,730,498.69 |
| Salestotopfivecustomersas%oftotalannualsales | 0.12% |
| Related-partysalesinthesalestotopfivecustomersas%oftotalannualsales | 0.00% |
InformationaboutTop5Customers
| No. | Customername | Sales(RMB) | As%oftotalannualsales |
| 1 | Xue* | 684,299.84 | 0.03% |
| 2 | AllGamers（Chengdu）NetworkTechnologyCoLtd | 566,037.74 | 0.03% |
| 3 | Zhang* | 542,725.65 | 0.02% |
| 4 | Ma* | 497,200.03 | 0.02% |
| 5 | Fu* | 440,235.43 | 0.02% |
| Total | -- | 2,730,498.691 | 0.12%2 |
Note:1.Thesalesfiguresinthetableareallexclusiveoftax.Note:2.Thenumbersinthetableareroundedtotwodecimalplaces.Duetorounding,theremaybeslightdifferencesinthefinaldigits,whicharenotcalculationerrors.Othernotesaboutkeycustomers.Note:3.Thisclientisoneoftheclientsofweddingplanning。
□Applicable?NotapplicableKeysuppliersofDRCO
| Totalpurchaseamountoftopfivesuppliers(RMB) | 265,471,439.41 |
| Totalpurchasesfromtopfivesuppliersas%oftotalannualpurchaseamount | 51.30% |
| Related-partypurchasesinthepurchasesfromtopfivesuppliersas%oftotalannualpurchases | 0.00% |
InformationaboutTop5Suppliers
| No. | Suppliername | Purchaseamount(RMB) | As%oftotalannualpurchase |
| 1 | Supplier1 | 131,149,993.84 | 25.34% |
| 2 | Supplier2 | 44,231,873.55 | 8.55% |
| 3 | ChinaMinshengBankingCorp.,Ltd.ShenzhenBranch | 30,579,877.69 | 5.91% |
| 4 | Supplier4 | 29,846,398.46 | 5.77% |
| 5 | Supplier5 | 29,663,295.87 | 5.73% |
| Total | -- | 265,471,439.411 | 51.30% |
Note1:Thepurchaseamountisthetax-exclusiveamount.Othernotesaboutkeysuppliers
□Applicable?Notapplicable
3.Expenses
Unit:RMB
2023
| 2023 | 2022 | YoYchange | Explanationofsignificantchanges | |
| Sellingexpenses | 1,228,761,165.59 | 1,422,037,537.50 | -13.59% | Thiswasmainlyduetothedecreaseinboththerent(commissionrent),measuredastheunrecognizedleaseliability,andplatformservicefeesasaresultofthedecreaseinrevenues,aswellasthedecreaseinadvertisingexpenses. |
| Administrativeexpenses | 151,996,111.88 | 164,205,877.87 | -7.44% | Thiswasmainlyduetothedecreaseinnon-deductibleinputtaxonintra-grouptransactionsduringthereportingperiod. |
| Financialexpenses | 25,770,104.86 | 21,536,754.47 | 19.66% | Thiswasmainlyduetothedecreaseininterestincomefromdemanddepositsduringthereportingperiodasthefund-raisingprojectswereputintouseandtheCompanypurchasedfixed-termfinancialproducts. |
| R&Dexpenditure | 21,715,215.75 | 17,944,132.37 | 21.02% | ThiswasmainlyduetoincreasingR&Dexpenditureduringthereportingperiod. |
4.R&Dexpenditure?Applicable□Notapplicable
| NameofkeyR&Dproject | Projectpurpose | Projectprogress | Intendedgoals | ImplicationsonDRCO'sfuturedevelopment |
| DREngagementProject | WhileDR'smainbusinesscontinuestogrow,weareexpandingourWedding+newbusiness,buildingtheWedding+platformtosupportbusinessdiversification,makinginternalcollaborationtransparentandefficient,andempoweringmerchantstodigitallymanagetheirbusinesssoastobuildastrongconnection. | UnderR&D | Coverscenariossuchasengagement/weddingplanningandweddingphotography.Conductrefinedmanagementofallaspectsrelatingtomerchantentry,solutionuploadinganddownloading,sales,delivery,merchantsettlement,etc.,whichhelpstheenterprisestandardizenewbusinessandimproveworkefficiency. | TheexpansionoftheDRWedding+willhelpimproveuserservice,expandtheuserbase,andincreasesalesrevenue. |
| SAPDiamondZhizaoSystemR&DProject | WiththedevelopmentoftheCompany'sbusiness,inordertoenhancetheCompany'scompetitiven | UnderR&D | BuildingtheDiamondZhizaoaccountanddevelopingrelatedbusinessprocessesbasedonbusiness | TheSAPDiamondZhizaoSystemwillenablethemanagementandoptimizationofthewholebusi |
ess,expandbusinesslinesandimproveefficiency,DRCOstartedtobuildacompletesetofbusinesslinescoveringthewholeprocessfromroughprocurementtodiamondprocessing,aimingtoshortentheprocurementcycleandreducecosts.
| ess,expandbusinesslinesandimproveefficiency,DRCOstartedtobuildacompletesetofbusinesslinescoveringthewholeprocessfromroughprocurementtodiamondprocessing,aimingtoshortentheprocurementcycleandreducecosts. | scenarioswillenableonlinesystematicmanagementoverdataandprocesses | nesschainfromroughprocurementtoroughdiamondprocessing,thusshorteningthediamondprocurementcycle,reducingbusinesscostsandinjectingnewvitalityintotheCompany'sfuturedevelopment. | ||
| ShopAssistantWorkstationProject | Thegoalistocreateanintegratedtouchpointplatformthatconnectsheadquarters,shopassistants,andusers,enablingtimelyresponsesandfeedbacktouserneeds.Throughthisplatform,operationalstaffatheadquarterscaninstantlypushpotentialcustomersandcontacttacticstoshopassistants. | UnderR&D | Usetheplatformtopushpotentialcustomersandcontacttacticstoshopassistantswhowillthencandirectlyreachuserstocreatemorebusinessopportunities.Meanwhile,thefeedbackswillbesenttothebackendofficefordatacollectionthatwillhelpdevelopoperationstrategies. | Theoperationstaffatheadquarterswillbeabletoaccuratelyidentifypotentialcustomersandtimelyinformshopassistantswhowilldirectlycontactpotentialcustomerstowinbusinessopportunities.Thiswillgreatlyimprovethesalesefficiencyandcustomersatisfaction,thuslayingasolidfoundationfortheCompany’sfuturedevelopment. |
| Ticketmanagementsystem | Departmentscollaboratefrequentlybothinternallyandexternally,butcollaborationlackssystematization,resultinginincreasedcommunicationcosts.Inordertoenhanceefficiency,itisplannedtoestablishaticketmanagementsystemtorealizereal-timetrackingandcomprehensiveclosed-loopmanagementofthecollaborationprocess. | UnderR&D | ThisprojectisdesignedtobuildaflexibleandconfigurableticketmanagementsystemaccordingtotheCompany'svariousbusinessscenarios,includingcollaborativeforms,processmodels,approvalnodes,datapermissionsandotherfunctions,soastosupporttheCompany'sdiversifiedandrapidlychangingbusinessdevelopmentneeds. | Theticketmanagementsystemwillenablethesystematicmanagementofthecollaborationprocess,soastostrengthentheteamworkwithintheenterpriseandimprovetheworkefficiency.Meanwhile,thesystemwillcollectandanalyzetheticketdataformanagerstomakeaccurateandcomprehensivebusinessdecisionsthussupportingtheCompany'scompetitivenessandsustainabledevelopment. |
| OverseasOfficialWebsiteProject | Thisprojectaimstobuildanoverseasbusinesssystemtoaddressthecurrentbusinesschallengesandlayasolidfoundationforfuturedev | UnderR&D | Thenewsystemwillbeflexibleandhighlycustomizabletomeetdynamicallychangingbusinessneeds.Systemfunctionswillincludethedis | TheprojectwillbuildaflexibleandefficientofficialwebsitesystemtoenhancetheoperationalefficiencyandcompetitivenessoftheCompany |
elopment.Byimprovingtheoperationalefficiencyandcompetitivenessoftheoverseasbusiness,theCompanywillbeabletocovermoremarketsandimprovecustomerservices.
| elopment.Byimprovingtheoperationalefficiencyandcompetitivenessoftheoverseasbusiness,theCompanywillbeabletocovermoremarketsandimprovecustomerservices. | playofofficialwebsitecontent,real-timeuploadingandunloadingofproducts,andthesmoothoperationoftheentirecustomershoppingprocess.Atthesametime,thesystemwillbescalableenoughtoadapttofuturebusinessdevelopmentneeds. | 'soverseasbusiness.Itwillprovidestrongsupportforfuturebusinessexpansionandlayasolidtechnicalfoundationforfutureinnovationandbusinessgrowth.Atthesametime,itwillprovidebroaderopportunitiesfortheCompanytoexpandoverseasmarketsandrealizethestrategicgoaloflong-termsustainabledevelopment. | ||
| Influencermanagementsystem | GiventheCompany'scontinuousbusinessgrowthandoverseasmarketexpansion,thisprojectistopromoteDRproductsbycooperatingwithinfluencersandtocomprehensivelyevaluatetheirperformance. | UnderR&D | InordertosupporttheexpansionoftheCompany'soverseasbusiness,thisprojectwillestablishasophisticatedinfluencermanagementsystem,includingthemanagementofprivatedomaininfluencerpools,themanagementofinfluencercooperationinformationandthereal-timemonitoringofinfluencers'performancedata. | Withtheinfluencermanagementsystem,theCompanywillbeabletocentralizethemanagementofprivatedomaininfluencerresourcesandachievecomprehensivecontrolovertheinfluencercooperationprocess.Thesystemwillrecordtheinformationofinfluencercooperationandcollecttheperformancedataofinfluencersonaregularbasis,establishtheperformancedatadashboardandrealizethereal-timemonitoringofinfluencers'inputsandoutputs.Thiswillprovideaccuratedatasupportformanagersandmarketerstomakebusinessdecisions,andfacilitatetheCompany'sfuturebusinessdevelopmentandbrandpromotion. |
| DataPlatformProject | ThedatavolumehasincreasedwiththeCompany'sbusinessgrowth.Inordertosupportthebusinessoperation,meetthedataneedsofvariousdepartments,andimprovethedecision-makingefficien | UnderR&D | Buildahighlyavailableandscalabledatastoragesystemtoensuredatasecurityandstability;buildanefficientdataprocessingandanalysissystemtosupportreal-timedataprocessingandbatchdatap | Anefficient,shared,secureandeasy-to-usedataplatformwillsupporttheoperationaldecision-making,businessinnovationandeconomicbenefitmanagement.Theplatformwillrealizecentralizedstor |
cy,theCompanyestablishedaunifieddataplatformtoprovidereliabledatasupport.
| cy,theCompanyestablishedaunifieddataplatformtoprovidereliabledatasupport. | rocessing;providerichdatavisualizationandreportgenerationfunctionstomeetusers'diversifieddatapresentationneeds. | age,processingandanalysisofdata,improvetheefficiencyofdatautilization,promotetheCompany'sdigitaltransformationofandenhancetheCompany'scompetitiveness.ThiswilllayasolidfoundationandprovidesustainablegrowthmomentumfortheCompany'sfuturedevelopment. | ||
| Middle-endPlatformforAppointment | Thisprojectistointroducenewmembershipcardcategoriestoencouragecustomerretentionandprovideuserswitharichpointsredemptionexperienceintheloyaltyrewardsstore. | UnderR&D | Settingupbackendmarketingcampaignconfigurationsandmonitoringuserdatafeedbackhelpenhanceuserexperience.Existingcustomerscaninvitenewcustomerstoredeemvouchers.Ifthenewcustomerssuccessfullyplaceanorderandredeemthevoucher,theexistingcustomerswillearnpointsthatcanbeusedtoredeemgiftsinthepointsredemptionstore. | Byconfiguringmarketingcampaignactivitiesonthemini-program,thecompanywillbeabletodrivecustomeracquisitionandretentionandenrichtheuserexperience.Thiswillhelpincreaseuserengagement,improveuserretention,andultimatelydrivebusinessgrowthandbrandimpact. |
| ConstructionoftheDiamondJewelryR&DDesignCenter | Improveproductdevelopmentanddesigncapabilitiestoaddressmarketcompetition;makemoreeffortstodesignclassicstyleproductstoenhancetheproductuniqueness;introducescarceIPstoenhancethebrandvalue. | UnderR&D | IncreaseinvestmentinR&Danddesign,expanditsin-housefull-timeR&Danddesignteam,andimproveDRCO'sindependentR&Danddesigncapabilities. | SatisfytheneedsofendconsumersandenhanceDRCO'sbrandinfluence. |
R&DStaffofDRCO
| 2023 | 2022 | Change | |
| NumberofR&Dstaff | 66 | 47 | 40.43% |
| R&Dstaffas%oflaborforce | 2.06% | 1.05% | 1.01% |
| EducationbackgroundofR&Dstaff | |||
| Bachelor’sdegree | 48 | 34 | 41.18% |
| Master’sdegree | 4 | 4 | 0.00% |
Juniorcollegeandbelow
| Juniorcollegeandbelow | 14 | 9 | 55.56% |
| AgedistributionofR&Dstaff | |||
| <30ys | 30 | 22 | 36.36% |
| 30-40ys | 33 | 24 | 37.50% |
| >40ys | 3 | 1 | 200.00% |
R&DexpenditureandPercentageinRevenueinLastThreeYears
| 2023 | 2022 | 2021 | |
| R&Dexpenditures(RMB) | 21,715,215.75 | 17,944,132.37 | 16,822,042.92 |
| R&Dexpendituresas%ofrevenue | 1.00% | 0.49% | 0.36% |
| CapitalizedR&Dexpenditures(RMB) | 0.00 | 0.00 | 0.00 |
| PercentageofcapitalizedR&Dexpenditure | 0.00% | 0.00% | 0.00% |
| CapitalizedR&Dexpenditureas%ofnetprofitinthecurrentperiod | 0.00% | 0.00% | 0.00% |
ReasonsandeffectofmaterialchangesinthecompositionofR&Dstaff
□Applicable?NotapplicableReasonsforthesignificantYoYchangeintheproportionofR&Dexpenditureinrevenue
□Applicable?NotapplicableReasonsandrationalityforsignificantchangeincapitalizationratioofR&Dexpenditures
□Applicable?Notapplicable
5.Cashflow
Unit:RMB
| Item | 2023 | 2022 | YoYchange |
| Subtotalofcashinflowsfromoperatingactivities | 2,363,975,825.01 | 4,047,355,144.09 | -41.59% |
| Subtotalofcashoutflowsfromoperatingactivities | 2,327,010,317.20 | 3,229,344,031.85 | -27.94% |
| Netcashflowsfromoperatingactivities | 36,965,507.81 | 818,011,112.24 | -95.48% |
| Subtotalofcashinflowsfrominvestingactivities | 8,574,936,260.32 | 5,412,132,131.53 | 58.44% |
| Subtotalofcashoutflowsfrominvestingactivities | 8,121,047,907.58 | 9,725,178,220.62 | -16.49% |
| Netcashflowsfrominvestingactivities | 453,888,352.74 | -4,313,046,089.09 | 110.52% |
| Subtotalofcashinflowfromfinancingactivities | 533,333,453.61 | 536,119,714.66 | -0.52% |
Subtotalofcashoutflowsfromfinancingactivities
| Subtotalofcashoutflowsfromfinancingactivities | 1,319,525,263.45 | 1,266,121,911.18 | 4.22% |
| Netcashflowsfromfinancingactivities | -786,191,809.84 | -730,002,196.52 | -7.70% |
| Netincreaseincashandcashequivalents | -294,661,419.66 | -4,219,885,422.83 | 93.02% |
ExplanationofkeyfactorsforsignificantYoYchangeofrelevantdata?Applicable□Notapplicable
(1)Thedecreaseincashinflowsfromoperatingactivitieswasmainlyduetothedecreaseinsalesrevenueduringthereportingperiod.
(2)ThedecreaseincashoutflowsfromoperatingactivitieswasmainlyduetothedecreaseinboththesalerevenueandthepurchasevolumeofDRCOaswellasthedeclineofcorrespondingtaxes.
(3)Theincreaseincashinflowsfrominvestingactivitieswasmainlyduetotherecoveryoftheprincipalfromwealthmanagementproductsdueandtheincreaseinincomefromwealthmanagementproductsduringthereportingperiod.
(4)Theincreaseincashoutflowsfrominvestingactivitieswasmainlyduetotheincreaseintheprincipalpaidtowealthmanagementproductsduringthereportingperiod.(5)ThedecreaseintheamountofcashinflowsfromfinancingactivitieswasmainlyduetoDRCO'sborrowingsforbilldiscountingduringthereportingperiodandtheproceedsraisedfromthepublicofferingofsharesinthesameperiodofthepreviousyear.
(6)Theincreaseincashoutflowsfromfinancingactivitieswasmainlyduetothedistributionofcash
dividendsandtherepaymentofborrowingsforbilldiscountingduringthereportingperiod.Explanationofreasonsforthesignificantdifferencebetweenthenetcashflowfromoperatingactivitiesduringthereportingperiodandthenetprofitforthecurrentyear?Applicable□Notapplicable
1.Depreciation,amortization,andprovisionforassetimpairmentforthecurrentyearamountedtoRMB731.08million.Thispartofthecostandexpensesreducedprofits,butnocashoutflowwasgenerated;
2.ThenetincomefrominvestmentandfinancingactivitiesisRMB209.54million(includingfinancialexpensesandincomefromwealthmanagementproducts),whichincreasesprofits.However,thecashflowgenerateddoesnotbelongtooperatingactivities;
3.ThenetdecreaseofoperatingreceivablesandpayableswasRMB553.54million(includingthenetdecreaseofnotesandaccountspayablebyRMB477.26million),whichincreasedthecashoutflow.Themainreasonisthattheoutstandingpurchasepaymentsandtaxespayableattheendofthepreviousyearwerepaidinthisperiod,andwithchangesinoperatingconditions,thispartofthepaymenthasalsosignificantlydecreasedattheendofthisperiod.
V.Non-primaryBusiness
?Applicable□Notapplicable
Unit:RMB
Amount
| Amount | As%oftotalprofit | Reasons | Whethersustainable | |
| Investmentincome | 201,459,628.10 | 178.55% | Itismainlytheinvestmentincomefromredeemingthematurewealthmanagementproductsfrombanks. | No |
| Gains/lossesfromchangesinfairvalue | 31,151,566.30 | 27.61% | Mainlygainsonchangesinfairvalueoffinancialassetsrecognizedduringthereportingperiod. | No |
| Assetimpairment | -105,342,656.15 | -93.37% | Mainlyincludetheprovisionforinventoryimpairmentlossandimpairmentoflong-termassets. | No |
| Non-operatingincome | 2,881,923.18 | 2.55% | MainlyincludecompensationsreceivedbyDRCO. | No |
| Non-operatingexpenses | 7,709,541.48 | 6.83% | Mainlyincludebreachpenaltiesandoverduefines. | No |
| Gainsondisposalofassets | 19,708,867.36 | 17.47% | Mainlygainsondisposaloflong-termassetsduringthereportingperiod. | No |
| Otherincomes | 26,746,998.56 | 23.71% | MainlyimmediaterefundofVATleviedondiamondimports,andgovernmentsubsidies. | 1.ImmediaterefundofVATleviedondiamondimports:sustainable.2.Governmentsubsidies:notsustainable. |
| Lossoncreditimpairment | -7,519,950.73 | -6.66% | Mainlytheprovisionforunrecoverableleasedepositsduetotheearlyclosureofloss-makingstores. | No |
VI.AnalysisofAssetsandLiabilities
1.Significantchangesinthecompositionofassets
Unit:RMB
| 2023 | 2023 | Changeinproportion | Explanationofsignificantchanges | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Cashand | 227,854,223.17 | 3.03% | 521,904,818.30 | 5.92% | -2.89% | Mainlyduetothe |
cashequivalents
| cashequivalents | factthattheCompanyboughtmorewealthmanagementproductsduringthereportingperiod. | |||||
| Accountsreceivable | 83,147,399.06 | 1.10% | 84,478,911.52 | 0.96% | 0.14% | |
| Inventories | 526,939,044.37 | 7.00% | 669,886,638.00 | 7.60% | -0.60% | |
| Fixedassets | 12,617,322.42 | 0.17% | 14,068,805.09 | 0.16% | 0.01% | |
| Right-of-useassets | 208,971,654.66 | 2.78% | 590,506,167.36 | 6.70% | -3.92% | Mainlyduetothedecliningnumberofstoresduringthereportingperiod. |
| Short-termborrowings | 389,995,277.14 | 5.18% | 433,993,449.44 | 4.92% | 0.26% | |
| Contractliabilities | 109,633,363.46 | 1.46% | 126,705,661.82 | 1.44% | 0.02% | |
| Leaseliabilities | 67,781,149.67 | 0.90% | 276,542,164.23 | 3.14% | -2.24% | Mainlyduetothedecliningnumberofstoresduringthereportingperiod. |
Foreignassetsaccountforarelativelyhighproportion.
□Applicable?Notapplicable
2.Assetsandliabilitiesmeasuredatfairvalue?Applicable□Notapplicable
Unit:RMB
| Item | Openingamount | Gainsandlossesonchangesinfairvalueforthecurrentperiod | Cumulativefairvaluechangerecognizedinequity | Impairmentaccruedduringthereportingperiod | Amountofpurchaseincurrentperiod | Amountofdisposalincurrentperiod | Otherchanges | Closingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 5,609,891,931.68 | 34,920,377.10 | 7,350,000,000.00 | 8,152,865,603.71 | 4,841,946,705.07 | |||
| Subtotalof | 5,609,891,931.68 | 34,920,377.10 | 7,350,000,000.00 | 8,152,865,603.71 | 4,841,946,705.07 | |||
financialassets
| financialassets | |||||||
| Total | 5,609,891,931.68 | 34,920,377.10 | 7,350,000,000.00 | 8,152,865,603.71 | 4,841,946,705.07 | ||
| Financialliabilities | 0.00 | -3,768,810.80 | 66,909,346.72 | 7,864,600.00 | 62,813,557.52 |
ContentsofotherchangesWhetherthereweresignificantchangesinthemajormeasurementattributesofDRCO'sassetsduringthereportingperiod.
□Yes?No
3.RestrictedrightstoassetsasoftheendofthereportingperiodAsatDecember31,2023,theGrouputilizedrestrictedcashtotalingRMB890,612.21(December31,2022:
RMB279,787.68),whichwasmainlyduetopreservationoflawissue（Asatthereportingdate,thepaymenthasbeenmade）orchangeofaccounttypes.VII.InvestmentStatusAnalysis
1.Overallsituation?Applicable□Notapplicable
| Investmentinthereportingperiod(RMB) | Investmentinthesameperiodoflastyear(RMB) | Change |
| 8,121,047,907.58 | 9,725,178,220.62 | -16.49% |
2.Significantequityinvestmentsacquiredduringthereportingperiod
□Applicable?Notapplicable
3.Significantnon-equityinvestmentspendingduringthereportingperiod
□Applicable?Notapplicable
4.Investmentinfinancialassets
(1)Investmentinsecurities
□Applicable?NotapplicableTherewerenosecuritiesinvestmentsduringthereportingperiod.
(2)Investmentsinderivatives
□Applicable?NotapplicableTherewerenoderivativeinvestmentsduringthereportingperiod.
5.Useofraisedfunds?Applicable□Notapplicable
(1)Overalluseofproceeds?Applicable□Notapplicable
Unit:RMB0’000
Yearoffundraising
| Yearoffundraising | Methodoffundraising | Totalproceeds | Totalamountofproceedsusedinthecurrentperiod | Accumulatedamountofproceedsused | Totalamountofproceedswhoseintendedusewaschangedduringthereportingperiod | Accumulatededamountproceedswhoseintendedusewaschanged | Percentageofaccumulatedamountproceedswhoseintendedusewaschanged | Totalamountofunusedproceeds | Useanddestinationofunusedproceeds | Amountofproceedsidleformorethantwoyears | Yearoffundraising |
| 2021 | Publicoffering | 467,636.88 | 444,380.28 | 132,371.85 | 281,952.14 | 0 | 0 | 0.00% | 162,428.14 | Investinintendedprojectsandreplenishworkingcapital | 0 |
| Total | -- | 467,636.88 | 444,380.28 | 132,371.85 | 281,952.14 | 0 | 0 | 0.00% | 162,428.14 | -- | 0 |
| Explanationoftheoveralluseoftheproceeds | |||||||||||
| 1.ActualamountandarrivaldateofproceedsInaccordancewiththeCSRC's"ApprovalonAgreeingtheRegistrationofDRCorporationLimitedforInitialPublicOfferingofShares(ZhengJianXuKeNo.[2021]3043)"andtheSZSE'sapproval,DRCOconductedaninitialpublicofferingof40,010,000ordinaryshares(Ashares)withanominalvalueofRMB1.00andanissuepriceofRMB116.88pershare,raisingproceedsofRMB4,676,368,800.Thesponsorshipandunderwritingfees(excludingVAT)fortheIPOwereRMB217,341,600.OnDecember10,2021,thetotalproceedsofRMB4,460,725,300afterdeductingtheunderwritingfees(excludingVAT)ofRMB215,643,500wereremittedbytheunderwriterChinaSecuritiestoDRCO'sspecialaccountforproceeds.ThetotalproceedsraisedbyDRCOviatheIPOwereRMB4,676,368,800,andthenetproceedswereRMB4,443,802,800afterdeductingsponsorshipandunderwritingfees(excludingVAT)ofRMB217,341,600,andotherissuancefees(excludingVAT)ofRMB15,224,300(including:auditandcapitalverificationfeesofRMB4,471,300,legalcounselfeesofRMB5,422,100,informationdisclosurefeesofRMB4,018,900,issuancefeesandotherfeesofRMB1,312,100).TheadditionalregisteredcapitalreplenishedbytheIPOhasbeenverifiedbyErnst&YoungHuaMingLLP(SpecialGeneralPartnership)thatissueda"CapitalVerificationReport"(Ernst&YoungHuaMing(2021)YanZiNo.61403707_H01).2.Amountusedinthecurrentyearandyear-endbalanceAsofDecember31,2023,theaccumulatedamountoftheproceedsusedbyDRCOwasRMB2,819.52million,ofwhichRMB1,209.52millionwasusedtoinvestincommitteditemsandRMB1,610millionwas | |||||||||||
usedtopermanentlysupplementtheworkingcapital.AsofDecember31,2023,thebalanceofidlefunds(includingsurplusproceeds)forcashmanagementwasRMB1725million.AsofDecember31,2023,thebalanceofDRCO'sspecialaccountfortheproceedswasRMB21.96million(includinginterestincomeandinvestmentincomeafterdeductingservicecharges).
(2)Thesituationoftheprojectoffund-raisingcommitment?Applicable□Notapplicable
Unit:RMB0'000
usedtopermanentlysupplementtheworkingcapital.AsofDecember31,2023,thebalanceofidlefunds(includingsurplusproceeds)forcashmanagementwasRMB1725million.AsofDecember31,2023,thebalanceofDRCO'sspecialaccountfortheproceedswasRMB21.96million(includinginterestincomeandinvestmentincomeafterdeductingservicecharges).
Committedinvestmentprojectsandinvestmentareasofsurplusproceeds
| Committedinvestmentprojectsandinvestmentareasofsurplusproceeds | Whethertheprojecthasbeenchanged(includingpartlychanged) | Totalcommittedinvestmentofproceeds | Adjustedtotalinvestment(1) | Amountinvestedinthereportingperiod | Cumulativeamountinvestedasoftheendoftheperiod(2) | Investmentprogressasoftheendoftheperiod(3)=(2)/(1) | Datewhentheprojectreachesitsintendedserviceablestate | Benefitsrealizedduringthereportingperiod | Cumulativebenefitsrealizedasoftheendofthereportingperiod | Whethertheexpectedbenefitsarerealized | Whetherthefeasibilityoftheprojecthaschangedsignificantly |
| Committedinvestmentprojects | |||||||||||
| Constructionofchannelnetwork | No | 73,921.4 | 73,921.4 | 14,226.72 | 73,921.4 | 100.00% | December31,2023 | -13,978.13 | 19,354.61 | No | No |
| Constructionofinformationsystem | No | 11,047.45 | 11,047.45 | 1,957.66 | 6,506.34 | 58.89% | December31,2026 | Notapplicable | No | ||
| ConstructionofR&D,CreativityandDesignCenterforDiamondJewelries | No | 5,389.93 | 5,389.93 | 1,187.47 | 2,476.95 | 45.96% | December31,2025 | Notapplicable | No | ||
| Replenishingworkingcapital | No | 38,000 | 38,000 | 0 | 38,047.45 | 100.12% | Notapplicable | No | |||
| Subtotalofcommittedinvestm | -- | 128,358.78 | 128,358.78 | 17,371.85 | 120,952.14 | -- | -- | -13,978.13 | 19,354.61 | -- | -- |
entprojects
| entprojects | |||||||||||
| Investmentareasofsurplusproceeds | |||||||||||
| Undetermineduseofsurplusproceeds | No | 132,021.5 | 132,021.5 | Notapplicable | No | ||||||
| Replenishingworkingcapital(ifany) | -- | 184,000 | 184,000 | 115,000 | 161,000 | 87.50% | -- | -- | -- | -- | -- |
| Subtotalofinvestmentsofsurplusproceeds | -- | 316,021.5 | 316,021.5 | 115,000 | 161,000 | -- | -- | -- | -- | ||
| Total | -- | 444,380.28 | 444,380.28 | 132,371.85 | 281,952.14 | -- | -- | -13,978.13 | 19,354.61 | -- | -- |
| Describethecircumstancesandreasonswhytheplannedprogressandexpectedbenefitshavenotbeenrealizedbyproject(includingthereasonfor"notapplicable"concerning"whethertheexpectedbenefitsarerealized") | 1.Channelnetworkconstructionproject:theprojectgeneratedcumulativebenefitsofRMB193.55millionbytheendofthereportingperiodof2023,andbenefitsofRMB-139.78millionduringthereportingperiod.Theprojectachievedtheestimatedbenefitsbytheendofthereportingperiodof2022,butfailedtodosobytheendofthecurrentreportingperiodmainlyduetolower-than-expectedsalesundertheinfluenceofthemacroenvironmentandmarketdemands.2.Informationsystemproject:onApril26,2023,DRCOconvenedthefifthmeetingofthesecondsessionoftheBoardofDirectorsandthefifthmeetingofthesecondsessionoftheBoardofSupervisorstoreviewtheProposalonPostponingCertainProceeds-fundedProjects.AccordinglyDRCOwasapprovedtoextendthedatefortheprojecttoreachthescheduledserviceabilitystatusoftheproceeds-fundedprojectfromDecember31,2023toDecember31,2024,withoutchangingtheimplementationentity,theimplementationmethod,theuseofproceedsandtheintendedinvestmentamount;Factorsasthemarketenvironmentandthebusinessexpansionandstricterrequirementsforcorporategovernancehaveresultedinhigherrequirementsfortheinformationsystemconstruction.Asaresult,DRCOneedstoconductadequatesurveysanddiscussionsbeforeimplementingtheinformationsystemconstructionproject,soastofacilitatethesalesgrowthortheincreaseoftheoperationalefficiency.Inordertobettermanagetheprogressoftheproject,onApril25,2024,DRCOconvenedtheninthmeetingofthesecondsessionoftheBoardofDirectorsandtheninthmeetingofthesecondsessionoftheBoardofSupervisorstoreviewtheProposalonPostponingCertainProceeds-fundedProjects.Accordingly,DRCOwasapprovedtoextendthecompletiondateoftheproceeds-fundedprojectfromDecember31,2024toDecember31,2026inordertomoreeffectivelyutilizetheproceeds.3.R&D,CreativityandDesignCenterforDiamondJewelries:ItisShenzhenDarryCommercialManagementServicesthatisresponsibleforconstructingtheproject,whichisdesignedtotakethreeyears.Asthemarketdemandshavebeenchanging,thecompanyneedstooptimizethisnon-profitprojecttobetteralignwiththeactualrequirementsandthecorporatedevelopmentstrategy,leadingtodelayedconstructionprocess.OnApril26,2023,DRCOconvenedthefifthmeetingofthesecondsessionoftheBoardofDirectorsandthefifthmeetingofthesecondsessionoftheBoardofSupervisorstoreviewtheProposalonPostponingCertainProceeds-fundedProjects.AccordinglyDRCOwasapprovedtoextendthecompletiondateoftheproceeds-funded | ||||||||||
projectfromDecember31,2023toDecember31,2025,withoutchangingtheimplementationentity,theimplementationmethod,theuseofproceedsandtheintendedinvestmentamount;
| projectfromDecember31,2023toDecember31,2025,withoutchangingtheimplementationentity,theimplementationmethod,theuseofproceedsandtheintendedinvestmentamount; | |
| Explanationofsignificantchangesinprojectfeasibility | Notapplicable.AsofJune30,2023,the"channelnetworkconstructionproject"hasbeenimplementedandreachedtheintendedusablestate,thesecondhalfoftheyearduetomacroenvironmentalfactorsandmarketdemand,resultinginprojectbenefitslessthanexpected. |
| Amount,useandprogressofuseofsurplusproceeds | Applicable |
| 1.OnDecember30,2021,DRCOheldthe14thmeetingofthefirstsessionoftheBoardofDirectorsandthesixthmeetingofthefirstsessionoftheBoardofSupervisors;onJanuary18,2022,DRCOheldthefirstExtraordinaryGeneralMeetingin2022,reviewingandapprovingthe"ProposalonCashManagementforPartofIdleProceedsandSelf-ownedFunds”.ThemeetingauthorizedDRCOtousenotmorethanRMB3,500,000,000ofidleproceeds(includingsurplusproceeds)andnotmorethanRMB4,000,000,000ofitsownfundsforcashmanagementforaperiodof12monthsfromthedateofreviewandapproval.Suchfundscanbeusedonarevolvingbasiswithintheaforesaidamountandterm;onDecember29,2022,DRCOheldthe4thmeetingofthesecondsessionoftheBoardofDirectorsandthe4thmeetingofthe2ndsessionoftheBoardofSupervisors,andonJanuary17,2023,DRCOheldthefirstExtraordinaryGeneralMeetingin2023,reviewingandapprovingthe“ProposalonCashManagementforPartofIdleProceedsandSelf-ownedFunds”.ThemeetingauthorizedDRCOtousenotmorethanRMB3,000,000,000ofidleproceeds(includingsurplusproceeds)andnotmorethanRMB6,000,000,000ofitsownfundsforcashmanagementforaperiodof12monthsfromthedateofreviewandapproval.Suchfundscanbeusedonarevolvingbasiswithintheaforesaidamountandterm;onDecember28,2023,theCompanyheldthe8thmeetingofthe2ndsessionoftheBoardofDirectorsandthe8thMeetingofthe2ndSessionoftheBoardofSupervisorsattheCompany’smeetingroom;onJanuary16,2024,theCompanyheldthefirstExtraordinaryGeneralMeetingin2024,reviewingandapprovingthe“ProposalonCashManagementforPartofIdleProceedsandSelf-ownedFunds”.ThemeetingauthorizedDRCOtousenotmorethanRMB1,800,000,000ofidleproceeds(includingsurplusproceeds)andnotmorethanRMB6,000,000,000ofitsownfundsforcashmanagementforaperiodof12monthsfromthedateofreviewandapproval.Suchfundscanbeusedonarevolvingbasiswithintheaforesaidamountandterm.AsofDecember31,2023,thebalanceofsurplusproceedsforcashmanagementwasRMB1,660,000,000.2.OnApril20,2022,DRCOheldthe15thmeetingofthefirstsessionoftheBoardofDirectorsandthe7thmeetingofthefirstsessionoftheBoardofSupervisors,whichconsideredandapprovedthe"ProposalonUsingPartoftheSurplusProceedstoPermanentlyReplenishWorkingCapital",andagreedthatDRCOmayuseRMB940,000,000ofsurplusproceedstopermanentlyreplenishtheworkingcapital,representing29.74%ofthetotalsurplusproceeds.Thisproposalwasdeliberatedandapprovedattheshareholders'meetingonMay20,2022;onApril26,2023,DRCOheldthe5thmeetingofthe2ndsessionoftheBoardofDirectorsandthe5thMeetingofthe2ndsessionoftheBoardofSupervisors,whichconsideredandapprovedthe"ProposalonUsingPartoftheSurplusProceedstoPermanentlyReplenishWorkingCapital",andagreedthatDRCOmayuseRMB900,000,000ofsurplusproceedstopermanentlyreplenishtheworkingcapital,representing28.48%ofthetotalsurplusproceeds;thisproposalwasdeliberatedandapprovedattheshareholders'meetingonMay26,2023.AsofDecember31,2023,DRCOhadtransferredRMB1,610,000,000fromitsspecialaccountfortheproceedstopermanentlysupplementtheworkingcapital. | |
| Changesintheimplementationlocationofprojectsfunded | Notapplicable |
bytheproceeds
| bytheproceeds | |
| Adjustmentoftheimplementationmethodofprojectsfundedbytheproceeds | Notapplicable |
| Earlyinvestmentandreplacementofprojectsfundedbytheproceeds | Applicable |
| OnApril20,2022,DRCOheldthe15thmeetingofthefirstsessionoftheBoardofDirectorsandthe7thmeetingofthefirstsessionoftheBoardofSupervisors,whichconsideredandapprovedthe"ProposalontheReplacementofSelf-raisedFundsInvestedinAdvanceandPaidforIssuanceExpenseswithProceeds",andagreedthatDRCOmayusetheproceedstoreplacetheself-raisedfundsofRMB370,182,800investedinadvanceandfundsofRMB5,455,000paidforissuanceexpenses,whichtotaledRMB375,637,800.Ernst&YoungHuaMing(SpecialGeneralPartnership)issuedthe"CapitalVerificationReportonDRCorporationLimited’sInvestmentsinIntendedProjectswithSelf-ownedFunds(Ernst&YoungHuaMing(2022)ZhuanZiNo.61403707_H01).BeforeMay10,2022,DRCOsuccessivelytransferredatotalofRMB366,804,400fromitsspecialaccountforproceedsforthereplacementpurpose,includingRMB361,349,400fortheinvestmentsinadvanceandRMB5,455,000forissuanceexpenses. | |
| Useidleproceedstotemporarilyreplenishworkingcapital | Notapplicable |
| Theamountandreasonsforthebalanceofproceedsafterprojectimplementation | Applicable |
| 1.Theremainingraisedfundsforthe"SupplementaryWorkingCapitalProject"amountedtoRMB553,600,andforthe"ChannelNetworkConstructionProject"amountedtoRMB16,159,900.2.Duringtheimplementationoftheraisedcapitalprojects,thecompanystrictlyadheredtotherelevantregulationsontheuseofraisedfundsandprudentlyutilizedthem.Whileensuringthattheimplementationoftheraisedcapitalinvestmentprojectswasnotaffectedandthattheraisedfundsweresecure,thecompanyengagedincashmanagementofidleraisedfundstoimprovetheefficiencyoftheirutilization.Thisresultedincertaininvestmentreturnsandinterestincomegeneratedduringtheperiodofdeposit. | |
| Useanddestinationofunusedproceeds | DRCO'sunusedproceedsareusedtopurchaseapprovedcashmanagementproductsanddepositedinaspecialaccount.AsofDecember31,2023,thebalanceofproceedsdepositedinthespecialaccountwasRMB21,960,000;thebalanceoftheidleproceeds(includingsurplusproceeds)forcashmanagementwasRMB1,725,000,000,consistingofRMB1,660,000,000asthebalanceofthewealthmanagementproductsboughtbysurplusproceedsandRMB65,000,000asthebalanceofthewealthmanagementproductsboughtbythecapitalofthecommittedinvestmentprojects. |
| Problemsorothercircumstancesintheuseanddisclosureofproceeds | Notapplicable |
(3)Changesinprojectsfundedbyproceeds
□Applicable?Notapplicable
ThereisnochangeintheprojectsfundedbyproceedsduringDRCO’sreportingperiod.
VIII.Disposalofmaterialassetsandequityinterests
1.Disposalofmaterialassets
□Applicable?NotapplicableDRCOdidnotdisposeofanymaterialassetsduringthereportingperiod.
2.Disposalofmaterialequityinterests
□Applicable?Notapplicable
IX.Analysisofmajorsubsidiariesandassociates
?Applicable□NotapplicableInformationaboutmajorsubsidiariesandassociatesthatmayinfluenceDRCO’snetprofitby10%ormore
Unit:RMB
Companyname
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Revenue | Operatingprofit | Netprofit |
| ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd. | Subsidiary | Informationtechnologyservices,overseassalesbusiness | 25,000,000.00 | 367,675,587.42 | 160,641,656.92 | 273,680,680.81 | 149,643,421.55 | 127,173,516.83 |
| ShenzhenDarryCommercialManagementServiceCo.,Ltd. | Subsidiary | Supplychainmanagement,R&Danddesign,customizedproductservicesandrelatedsupportingservices | 10,000,000.00 | 162,053,249.60 | 133,864,850.15 | 186,268,310.63 | 143,309,507.54 | 120,944,113.57 |
Theacquisitionanddisposalofsubsidiariesduringthereportingperiod?Applicable□Notapplicable
| Companyname | Methodofacquiringanddisposingofsubsidiariesduringthereportingperiod | Impactonoveralloperationandperformance |
| He’erCulture(Hainan)Co.,Ltd. | Fundtheestablishment | Nosignificantimpact |
| ShenzhenDRJewelrySales | Fundtheestablishment | Nosignificantimpact |
| ForeverTrueLoveWeddingPlanning(Shenzhen) | Fundtheestablishment | Nosignificantimpact |
| HappyLovePhycologyResearchCenter(Shenzhen) | Fundtheestablishment | Nosignificantimpact |
| ForeverTrueLoveWeddingPlanning(Sanya) | Fundtheestablishment | Nosignificantimpact |
| DRLUXURY(SINGAPORE)PTE.LTD. | Fundtheestablishment | Nosignificantimpact |
DRLuxuryNetherlandsHoldingB.V.
| DRLuxuryNetherlandsHoldingB.V. | Fundtheestablishment | Nosignificantimpact |
| LOVEMONT（MALAYSIA）SDN.BHD. | Fundtheestablishment | Nosignificantimpact |
| DRLUXURYUSAINC | Fundtheestablishment | Nosignificantimpact |
| LOVEMONTHONGKONGLIMITED | Fundtheestablishment | Nosignificantimpact |
| ShangqiuDRJewelry | Deregistered | Nosignificantimpact |
| WuhanDRJewelry | Deregistered | Nosignificantimpact |
| NanchangDRJewelry | Deregistered | Nosignificantimpact |
| HandanDRJewelry | Deregistered | Nosignificantimpact |
| GuangzhouDRJewelry | Deregistered | Nosignificantimpact |
| LangfangDRJewelry | Deregistered | Nosignificantimpact |
| FoshanDRJewelry | Deregistered | Nosignificantimpact |
| UrumqiDRJewelry | Deregistered | Nosignificantimpact |
Informationaboutmajorsubsidiariesandassociates
1.SubsidiaryLoveOnlyAIprimarilyengagesincompanyinformationtechnologyservicesandoverseassalesbusiness.Duringthereportingperiod,itachievedanetprofitofRMB127.17million,adecreaseof
47.45%comparedtothesameperiodlastyear.
2.SubsidiaryDarryQianhaiisprimarilyengagedincompanysupplychainmanagement,researchanddevelopmentdesign,customizedproductservices,andrelatedsupportingservices.Duringthereportingperiod,itachievedanetprofitofRMB120.94million,adecreaseof44.92%comparedtothesameperiodlastyear.X.StructuredentitiesunderthecontrolofDRCO
□Applicable?Notapplicable
XI.ProspectforDRCO’sfuturedevelopment(I)DevelopmentstrategyAlwaysputtinggreatimportanceonthelong-termdevelopment,DRCOfocusesonthedevelopmentstrategyof“diamondringasNo.1,multi-brandandmulti-category”andproposesthestrategicgoalof“becominganewluxurygroupwithmultiplebrands”.Centeringaroundtheoveralldevelopmentstrategy,DRCOwillseizetheimportantopportunitiesarisingfromtherapiddevelopmentofChineseandeventheglobaljewelryindustries.Byimprovingtheimageandinfluenceofthebrand,refiningR&Danddesigncapabilitiesandenhancingtheinfluenceininternationalmarkets,eachoftheCompany’sbrandswillbeabletofocusonthedifferentiatedvalueandleveragethecorecompetitivenessofthecompanypromotesthecoordinateddevelopmentofmulti-brands.(II)Businessdevelopmentplanfor2024Thecomplexityanduncertaintyofthemarketenvironment,fluctuationsintheglobaleconomy,changesinconsumerbehaviorandtheevolutionofthecompetitivelandscapehaveallhadaprofoundimpactonourbusiness.Againstthisbackdrop,we'verealizedthatonlythroughcontinuousinnovation,efficiencyimprovementandbrandvalueenhancementcanwemaintainourleadingpositioninthefiercelycompetitivemarketplace.In2024,theCompanywillcontinuetofocusonthecorebrandDRandadheringtotheconceptof"thesoletrueloveinonelife",enhanceourbrandvalueandmarketcompetitiveness,andactivelyrespond
tomarketchangesandchallengesthroughbrandbuildingandrefinedbusinessoperationandmanagement.
1.Brandpower
(1)Increasebrandvalue
①Upgradebrandimage:Optimizestandardstorespaces,innovateinthedevelopmentofdisplayprops;establishavisualmateriallibrary,unifyvisualstandards,andupgradethebrand'sprimarycolors;optimizepackagingmaterialsandvisualmaterialsforactivities;upgradebrandsymbolsandensurefull-channelcoverage;②Accumulatebrandassets:Frombrandstoriestoproductstories,establishbrandbackgroundandbrandparadigm,shoothigh-energybrandfilms,andcreativeshortfilmsthatrangefrombrandstoriestoproductstories;③Brandevents:activelyparticipateininternationalexchangesandcooperation,enhancethebrand’sinternationalawareness,createartexperiencespacesandloveexperiencespaces,organizeco-brandingactivitiesforboththebrandandproducts,pressreleasesforbrandupgradeandseason-specificloveevents,andsoon.
(2)OptimizebrandcommunicationExploreandguideuserneedsviathebrandconcept,lookformicro-momentsbetweenthebrandandusers,diversifythelanguageandcontentofbrandcommunication,refinethecoreofthebrandcommunication,alignthecontentswiththeproducts,strengthenthebrand'semotionalattributes,arousethedesireforthebrand,enhancethebrandmomentumandinfluence,gainpopularitybothonlineandoffline;createtheextremebrandreputationthroughprojectsassociatedwiththebrandconceptandthesocialvalue,improvethebrandcommunicationandthebrandimpact;setupaspecialcommunicationteamtoinnovatethecontentofthenewplatformsandthebrand'ssenseofceremonytoformnewtouchpoints;disseminatewarmandgroundedcontentwithpositiveenergyandcharacteristicsoftheeratoreflecttheattitudeandwarmthofthebrand.
2.ProductcompetitivenessDRCOalwaysrespondstomarketchangeswithemotionallyappealingproducts,uniqueemotionalexperiences,andanexclusiveservicesystemthatmatchesthestoresproducts,andusers.TheCompanycontinuouslyinnovatesanddevelopsproductsthatembodybrandidentityandtrueloveemotion,spreadsthebrand'strueloveconceptandempowerthebrandthroughhigh-qualityproductsthatbridgethecommunicationbetweenthebrandanduserstofurtherenhancethebrandimage.In2024,theCompanywillcontinuetoincreaseinvestmentinproductdesignandtechnologyresearchanddevelopment,explorethecombinationofjewelryandexpressionoflove.OurR&Dwillfocusonmaterials,design,technologyandotheraspectstopromoteproductinnovation,launchnewproductstomeetthemarketdemands,andcreatebrandidentityandclassicworksforbrandcommunicationtomeettheneedsofdifferentscenarios,differentusersanddifferentchannels.Wewillprovideconsumerswithmoreuniqueandhigh-qualitychoices,iterativelyupdatethecoreproductsoftheDRbrand,improveproductquality,diversifydesigns,andsetupaspecialteamforgoldtodesignandlaunchgold-themedweddingsuitsconsistingoffivegoldandonediamondproducts,soastoconsolidatethebrand'scorecompetitivenessintheweddingmarket;wewillrefinethe"Wedding+"platformbyincludingproposal/weddingplanning,wedding
photography,portraitsandothersupportingservices;wewillintegrateandpromoteprestigiousworks,createacross-departmentclosed-loopfromnewproductreleasetoretailsalessoastoenablethecoordinatedmanagementacrossthewholelifecycleoftheproductsandestablishadepartment-wideprocessandpoint-in-timeplanning;wewilltracediamondsinconjunctionwithindustrypartners,andcollaboratewithprofessionalorganizationsincludingNaturalDiamondCouncil,PlatinumGuildInternationalandIGItoboostthesustainabledevelopmentofthediamondindustry.
3.Saleschannels
(1)ExpandchannellayoutIn2024,theCompanywillcontinuetooptimizethechannelstructureandupgradethechannelhierarchy,maintainingflexibilityandsensitivitytothemarketatalltimes,soastoeffectivelyaddressexternalthreatsandseizetheopportunitiesinleadingchannelsinatimelymanner,andfurtherstrengthenthebrandpotentialandenhancetheoperationalefficiencythroughchanneloptimizationanddevelopment.Ontheonehand,wewillcontinuetocompletetheoptimizationofprojectsinfirst-andsecond-tiercitiesandthetailendofbusinesscircles,focusingourresourcesonbuildingthepotentialofleadingstoresandenhancingtheoverallfinancialbenefitsthecities;ontheotherhand,wewillgraduallyreturntothesingle-storemodelincitiesbelowthethird-tierlevel.Intermsofnewlyopenedstores,wewillfocusontheleadingcommercialprojectsincitieswherewehavenotyetentered,andplantobuildnewbrandflagshipstoreswithleadingcommercialrealestategroups;adheringtotheprincipleofprudentassessment,wewillenterintosomeimportanttier-3andtier-4citieswithoutourfootprints,soastofurtherimprovethechannellayout.Withtheeffectiveprogressofthechannellayoutadjustmentplanandthematurityoftheadvantageousnewlyopenedstores,theoverallbenefitsgeneratedbychannelswillbegreatlyimproved.
(2)OperationofstoresOfflinestoresarethewindowoffront-enduserexperience.In2023,theCompanyconductedahostofactivitiesduringholidayssuchasValentine'sDay,520,Qixi,NationalDay,ChristmasandNewYear'sDay.WelaunchedaseriesofDPchecking-inprojectsin52citiesnationwide,whichenhancedtheperceptionoftheDRbrandamongcustomersofrelatedshoppingmallsthroughbrand-specificdisplaysandguidedpassersbytosharetheirexperiences.In2024,wewillcontinuetooptimizestoreoperationsandmanagementtoenhancetheuserexperienceandprovidecustomerswithbettersolutionstoexpresstheirlove:
①Upgradetheoperationsystem:Enhancetheservicequalityandcustomerexperienceofstoresbyrefiningserviceprocessesandstrengtheningtheserviceskillsandprofessionalismofemployees;establishatrainingandknowledge-sharingplatformtoprovidetrainingcourses,managementexperiencesharing,andbestpracticecasestostoremanagersinadigitalmanner;optimizestorelayoutanddisplaystoenhanceproductpresentation,utilizevisualdisplaytoolssuchasshowcases,models,andposterstohighlightproductfeaturesandbrandimage,furthersolidifyingtheshoppingenvironmentguidedbyDreamWeddingvalues;improveinventorymanagementandsupplychaindistributioncapabilitiesofstores,utilizesalesdataandmarkettrendanalysisforsalesforecastinganddemandplanning,soastoincreaseinventoryturnoverrateandcapitalutilizationefficiency;strengthentheoperationandmanagementcapabilitiesofstoremanagers;
providestoremanagerswithdataanalysistoolsforthemtobetterunderstandthesalesdata,customerbehaviorsandmarkettrends.Developanintelligentuseropportunityidentificationsystemtobetteridentifytheneedsofusersforrings,manageandfollowtheinformation,shoppingrecordsandfeedbacksofcustomers.
②Classifytheoperationofstores:Implementhierarchicalmanagementbasedonfactorssuchasstoresize,geographiclocationandcustomerdemandtodevelopmoreaccuratestrategicplanningandoperationalstrategies,andprovidesupportandmanagementresourcestodifferentlevelsofstores;providetailoredtrainingandsupporttostoresatdifferentlevelstoimprovetheiroperatingresultsandcustomersatisfaction.
③Userservices:Designtargetedlinksandfocusesforuserexperienceservicebasedonthecharacteristicsandserviceexpectationsofdifferentusers,providecomprehensiveproductknowledgeandpersonalizedrecommendationservices,emphasizebrandawarenessandengagement,andcreatemoreopportunitiesforuserstodeepenunderstandingofworksandengageindialogue.Designandestablishamembershipsystemtoofferuniquemembershipbenefits;utilizeanalysisofmembershipdatatoimplementpersonalizedpromotionsandservices,enhancingcustomersatisfactionandshoppingexperience.(III)Risksincorporateoperationandcountermeasures
1.IndustryandmarketvolatilityrisksAsaconsumergoodwithastrongdiscretionaryattribute,diamondsaresensitivetoexternalmacroeconomicconditionsandthedisposableincomeofresidents.Inrecentyears,intensifiedcompetitionwithinthediamondindustry,insufficientdemandfordiamondjewelry,sloweconomicrecoveryandincreasingpreferenceforgoldasasafehavenhaveledtorisingdemandforgoldandadverseeffectsonthediamondjewelryindustry.TheCompany'srevenuessufferedasharpdeclineduetoourfullyself-operatedsalesmodelandmainbusinessfocusingondiamondjewelry.Inthefuture,ifexternaleconomicgrowthslowsorstagnatesandthedisposableincomeofthepopulationdeclines,thiscouldaffectconsumerbehaviorandfurtherconstrainmarketdemandfordiamonds.Inaddition,geopoliticalcrisesinrecentyearshaveheightenedinternationaltradetensions,whichcouldcreateuncertaintyforoverseasdiamondsourcing.TheCompanyhasalwaysfirmlybelievedthatalong-termperspectiveisessentialfornavigatingthrougheconomiccycles,andthatcompetitionintheindustryandfluctuationsinthemarketenvironmentpresentbothrisksandopportunities.Inresponsetotheaboverisks,theCompanywillrespondtomarketchanges,makestrategicadjustments,maintainourcorecompetitiveadvantages,strengthenbrandpower,productcompetitivenessandsaleschannels,andimprovecostcontrolandoperationalefficiency;andcontinuetopayattentiontothesituationofthegoldmarketandtimelydiversifyproductofferingstoactivelycopewiththeimpactbroughtbytheindustrycycleandfluctuationsinthemarketenvironment.Atthesametime,DRCOwillkeeppayingattentiontotheoverseasroughdiamondmarketsandtimelymakestructuralprocurementadjustments,soastoactivelyrespondtotheimpactsoffluctuationsintheupstreamsupplychain.
2.RiskofconsignedproductionAsDRCOadoptstheconsignedproductionmodel,anydelayindeliveryorsubstandardqualityoftheoutsourcedproductswilladverselyaffectDRCO'sinventorymanagement,brandreputationandeven
operatingresults.Sinceitsestablishment,DRCOhasalwaysplacedgreatimportanceonthequalityofitsproducts.Inthecourseofitsdailyoperations,DRCOwillcontinuetoexercisestrictqualitycontrolovertheprocurementofrawmaterials,consignmentprocessingandacceptanceintothewarehouse,furtherstrengthenqualificationreviewovernewsuppliersandotherindicatorsason-sitecheckandblindtestingofsamples,monitorthediamondcoloranamonthlybasisandconductsampletestingofthematerialsproducedbysuppliers,andensurethatthefullqualitycontrolsystemiseffectivelyimplementedinallaspects.
3.RiskofdecliningbrandinfluenceTheCompany'sbrandinfluencehasanimportantinfluenceonthesustainabledevelopmentofitsperformance.IntheeraofmobileInternet,consumptionhabitsandtrendsalsocontinuetoevolve,andnewbrandsandnewbusinessconceptscontinuetoemerge,asaresultofwhichtheCompanyisstillfacingtheriskofadecreaseintheattractivenessofitsbrandconcept.Asthesocialandnetworkenvironmentcontinuestoevolve,theriskofpublicopinionisalsoincreasing.IftheCompanyhasinternalmanagementproblemsinbrandpublicity,registeredtrademarkprotection,terminalstoreimage,productquality,productintellectualpropertyrightsandafter-salesservice,itwilldirectlyleadtoadeclineinbrandinfluenceandmayfacenegativepublicopinionreports,whichwillhaveanegativeimpactontheCompany'sbrandreputation,operatingresultsandabilitytosustainoperations.TheCompany'sbrandreputation,businessperformanceandsustainabilitywillbenegativelyimpacted.Inresponse,DRCOhastakenthefollowingmeasures:(1)strengthenbrandbuilding,extendthecreationandoutputofhigh-qualitycontentwithvaluableconnotationsbasedontheuniquebrandconcept,andenhanceandincreasethevalueandthepositiveinfluenceofthebrand;(2)IncreasetheinvestmentinproductdesignandtechnologyR&Dtoencourageproductinnovation,andcontinuetoenhancethecompetitivenessofproducts,andconsolidatethecorecompetitivenessofthebrandintheweddingmarket;(3)adjustchannelstrategiesinaccordancewithchangesinthebusinesscircles,thealignmentbetweencustomerbasesandbrandpositioning,andcontinuouslyoptimizethechannelstructuretoupgradethelevelsofchannels;(4)protectintellectualpropertyrightssuchastrademarksinvolvedinthecourseofbusinesstoprotecttheCompany’sinterestsandbrandimage.
4.RiskofstoreswithlowperformanceTheChinesemarketiscurrentlyatacriticalmomentofeconomicrecoveryandtransformation,andtherearealsoexternaluncertainties,leadingtoinsufficientdemandfordiscretionaryconsumergoods.Underthefullyself-operatedsalesmodel,theCompanymayfacelower-than-expectedsalesresultsandimpairmentrisk.Inresponse,DRCOhastakenthefollowingmeasures:(1)regularlyconductacomprehensiveinventorycheckofstores,andtaketheinitiativetoclose,relocateandreplaceunderperformingstoresorstoresthatareinconsistentwiththebrandimage;(2)focusresourcesoncreatingmomentumforoutperformingstorestoimprovetheoverallfinancialperformanceincities;(3)hireanexternalprofessionalconsultingteamtobuildanidealmodelofterminalstoresinallaspects,andimplementthecityoperationimprovementplanforthesingle-store-in-single-cityprojects;(4)refinestoremanagement,optimizeinternalprocesses,andstrengthenthecontrolofrentalcoststoreducefixedrentalcostsandimproveoperationalefficiency.
5.Risksoflargebalanceandwrite-downofinventories
Toensuretimelyresponsetoproductcustomizationdemands,thecompanymaintainsacertainnumberofrawmaterialsandinventorygoodsduringoperations.Inthefuture,iftherearesignificantfluctuationsinpricesofkeyrawmaterialssuchasdiamondsormarketpricesofinventorygoods,theCompanymayfacetheriskoffurtherprovisionforinventorywrite-down.Toaddressthisrisk,theCompanywillincreasethevalueaddedofandenhancethecompetitivenessofproductsbyimprovingandupgradingproductsaccordingtomarketdemand.Additionally,theCompanywillactivelyadjustprocurementstrategies,strengthensafeandstrategicinventorymanagement,accelerateinventoryturnover,dynamicallymonitorinventorysituations,andmitigatetheriskofinventorywrite-downs.
XII.Registrationformforsurveys,communication,interviewsandotheractivitiesduringthe
reportingperiod?Applicable□Notapplicable
Date
| Date | Place | Method | Typeofinterviewer | Interviewer | Maindiscussioncontentsandmaterialprovided | Date |
| January4,2023 | Onlinemeeting | Onlinecommunication | Institution | CaptialGroup,GFSecurities,NewChinaAssetManagement | Industryprospect,marketlandscape,currentsituationandprospectofDRCO’sbusinessoperation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonJanuary10,2023onwww.cninfo.com.cn |
| January5,2023 | Onlinemeeting | Onlinecommunication | Institution | GuolianSecurities,ChinaPost&CapitalFundManagement | ||
| January6,2023 | Company’smeetingroom | Fieldsurvey | Institution | Personnelfrom17institutionsincludingYinhuaFund,DongfangAlfaFundManagement,andInforeCapitalManagement | ||
| January10,2023 | Onlinemeeting | Onlinecommunication | Institution | Personnelfrominstitutionsincluding8SouthwestSecurities,SWSMUFundManagement,andBoseraFundManagement | Industryprospect,marketlandscape,currentsituationandprospectofDRCO’sbusinessoperation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonJanuary19,2023onwww.cninfo.com.cn |
| January11,2023 | Onlinemeeting | Onlinecommunication | Institution | Fidelity,SealandSecurities,CaitongFund |
Management,DongwuSecurities
| Management,DongwuSecurities | ||||||
| January11,2023 | Company’smeetingroom | Fieldsurvey | Institution | OceanLink | ||
| January12,2023 | Onlinemeeting | Onlinecommunication | Institution | WesternSecurity,HFTInvestmentManagement | ||
| January13,2023 | Company’smeetingroom | Fieldsurvey | Institution | Personnelfrom13institutionsincludingMorganStanleyHuaxinFundManagementCompany,MatthewsAsia,andPenghuaFundManagement | ||
| January18,2023 | Onlinemeeting | Onlinecommunication | Institution | GFSecurities,SWSMuFundManagement | ||
| January31,2023 | Company’smeetingroom | Fieldsurvey | Institution | CITICSecurities | Industryprospect,marketlandscape,currentsituationandprospectofDRCO’sbusinessoperation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonFebruary16,2023onwww.cninfo.com.cn |
| January31,2023 | Onlinemeeting | Onlinecommunication | Institution | Personnelfrom40institutionsincludingGoldmanSachs,Huatai-pinebridgeFundManagement,andCentennialInsuranceAssetManagement | ||
| February1,2023 | Onlinemeeting | Onlinecommunication | Institution | GuosenSecurities,SchroderInvestmentManagement | ||
| February1,2023 | Company’smeetingroom | Fieldsurvey | Institution | EssenceSecurities | ||
| February2,2023 | Onlinemeeting | Onlinecommunication | Institution | Personnelfrom43institutionsincludingSpringsCapital,FounderFubonFundManagementandSinolinkSecurities |
AssetManagement
| AssetManagement | ||||||
| February3,2023 | Company’smeetingroom | Fieldsurvey | Institution | GFSecurities,CaitongFundManagement | ||
| February7,2023 | Company’smeetingroom | Fieldsurvey | Institution | GFSecurities,NewChinaAssetManagement | ||
| February8,2023 | Company’smeetingroom | Fieldsurvey | Institution | Personnelfrom14institutionsincludingHuachuangSecurities,BaoyingFundManagementandJPMorganAssetManagement(China) | ||
| February9,2023 | Company’smeetingroom | Fieldsurvey | Institution | Personnelfrom8institutionsincludingEFundManagement,InforeCapitalManagementandCSOPAssetManagement | ||
| February10,2023 | Company’smeetingroom | Fieldsurvey | Institution | SealandSecurities,WudiInvestment | ||
| February13,2023 | Onlinemeeting | Onlinecommunication | Institution | TianfengSecurities,NingyongfuFundManagement | ||
| February14,2023 | Company’smeetingroom | Fieldsurvey | Institution | ShanghaiSecurities,TRowePriceGroup | ||
| February15,2023 | Company’smeetingroom | Fieldsurvey | Institution | Personnelfrom6institutionsincludingChinaLifePension,CyberAtlas,andChangjiangPension | ||
| April28,2023 | Onlinemeeting | Onlinecommunication | Institution,retailinvestor | Personnelfrom109institutionsincludingCITIC | 2022AnnualReportand2023Q1Reportpresentations | Fordetails,pleaserefertotherecordofinvestorrelations |
Securities,ChinaLifeAMPAssetManagementandFortuneFundManagement,aswellassomeretailinvestors
| Securities,ChinaLifeAMPAssetManagementandFortuneFundManagement,aswellassomeretailinvestors | activitiesdisclosedbyDRCOonMay4,2023onwww.cninfo.com.cn | |||||
| May6,2023 | Company’smeetingroom | Fieldsurvey | Institution | HuachuangSecurities,TaikangAssetManagement | Industryprospect,marketlandscape,currentsituationandprospectofDRCO’sbusinessoperation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonMay24,2023onwww.cninfo.com.cn |
| May12,2023 | Company’smeetingroom | Fieldsurvey | Institution | Brilliance | ||
| May15,2023 | Company’smeetingroom | Fieldsurvey | Institution | Personnelfrom6institutionsincludingGuotaiJunan,WanliFudaInvestment,WutongYinfengWealthManagement | ||
| May16,2023 | Company’smeetingroom | Fieldsurvey | Institution | ChinaMerchantsSecurities,EagleInvestment,FirstBeijing | ||
| May17,2023 | Company’smeetingroom | Fieldsurvey | Institution | TopWealthBuilding,BeyondInvestment | ||
| May22,2023 | Company’smeetingroom | Fieldsurvey | Institution | SangengAssetManagement | ||
| July14,2023 | Onlinemeeting | Onlinecommunication | Institution | point72 | Industryprospect,marketlandscape,currentsituationandprospectofDRCO’sbusinessoperation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonJuly24,2023onwww.cninfo.com.cn |
| July20,2023 | Onlinemeeting | Onlinecommunication | Institution | Personnelfrom30institutionsincludingCITICSecurities,GuoshengSecuritiesandGFSecurities | ||
| August29,2023 | Onlinemeeting | Onlinecommunication | Institution,retailinvestor | Personnelfrom83institutionsincludingHuitianfuFundManagement,Sequoia | 2023InterimReportPresentation | Fordetails,pleaserefertotherecordofinvestorrelationsactivities |
CapitalandChinaResourcesSZITICTrust,aswellassomeretailinvestors
| CapitalandChinaResourcesSZITICTrust,aswellassomeretailinvestors | disclosedbyDRCOonAugust31,2023onwww.cninfo.com.cn | |||||
| August30,2023 | Company’smeetingroom | Fieldsurvey | Institution | ChinaSouthernFundManagement,FounderSecurities | Industryprospect,marketlandscape,currentsituationandprospectofDRCO’sbusinessoperation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonSeptember6,2023onwww.cninfo.com.cn |
| September5,2023 | Company’smeetingroom | Fieldsurvey | Institution | TianfengSecurities,WutongYinfengCapital | ||
| September6,2023 | Company’smeetingroom | Fieldsurvey | Institution | YinhuaFund,ChangjiangSecurities | ||
| October27,2023 | Onlinemeeting | Onlinecommunication | Institution,retailinvestor | Personnelfrom62institutionsincludingAEONInsuranceAssetManagement,Springs(Beijing)Capital,GuohuaShiningAssetManagement,andsomeretailinvestors | 2023Q3ReportPresentation | Fordetails,pleaserefertotherecordofinvestorrelationsactivitiesdisclosedbyDRCOonOctober29,2023onwww.cninfo.com.cn |
XIII.Implementationof“QualityImprovement&ReturnIncrease”ActionPlan
WhethertheCompanydisclosedthe“QualityImprovement&ReturnIncrease”ActionPlan.
□Yes?No
PartIV.CorporateGovernanceI.BasicInformationofCorporateGovernanceInaccordancewithrelevantlaws,regulationsandnormativedocumentsincludingthecompanyLawofPRC,theSecuritiesLawofPRC,theCodeofCorporateGovernanceforListedCompanies,theRulesGoverningtheListingofSharesontheChiNextMarketoftheShenzhenStockExchange,theNo.2GuidelinesforSelf-disciplinedRegulationofListedCompanies-StandardizedOperationofListedCompaniesonChiNextMarket,aswellastherequirementsoftheCSRC,DRCOconstantlyimprovesourcorporategovernancestructurethroughestablishingandrefininginternalmanagementandcontrolsystems,promotingstandardizedoperationandenhancingcorporategovernance.DuringtheReportingPeriod,thegeneralmeeting,theboardofdirectorsanditsspecialcommittees,theboardofsupervisors,theseniormanagementandtheindependentdirectorsofDRCOwelldefinedpowerandresponsibilities;thegeneralmeeting,theboardofdirectorsanditsspecialcommittees,andtheboardofsupervisorsimplementedstandardizedoperation,andtheindependentdirectorsandthesecretaryoftheboardofdirectorswerediligentintheirduties.TheactualsituationofDRCO’sgovernancecompliedwiththerequirementsofrules,regulationsandnormativedocumentsreleasedbytheregulatorsincludingCSRCandSZSE.(I)CorporategovernancesystemDuringthereportingperiod,DRCOrevisedthe“ArticlesofAssociation”,the“RulesofProcedureoftheBoardofDirectors”,the“RulesofWorkoftheAuditCommittee”,the“WorkingRulesoftheNominationCommittee”,the“WorkingRulesoftheStrategyandSustainableDevelopmentCommittee”,the“WorkingRulesoftheRemunerationandAppraisalCommittee”,the“WorkingSystemoftheIndependentDirectors”,the“WorkingRulesoftheGeneralManager”,the“InternalAuditManagementSystem”,the“InvestorRelationsManagementSystem”,the“FinancingManagementSystem”,the“AdministrativeMeasuresforConnectedTransactions”,the“AdministrativeMeasuresforExternalInvestment”,andthe“ExternalGuaranteeManagementSystem”,andformulatedthe“ManagementSystemforSharesHeldbyDirectors,SupervisorsandSeniorManagersandChangesthereof”,aswellasthe“SystemforSpecializedMeetingsofIndependentDirectors”,therebyfurtherimprovingthecorporategovernancesystem.(II)ShareholdersandgeneralmeetingsDuringthereportingperiod,DRCOheldoneannualgeneralmeetingandoneextraordinarygeneralmeetings,bothofwhichwereconvenedbyDRCO'sboardofdirectors.Thegeneralmeetingsofshareholderswereheldinaccordancewithrelevantlawsandregulationstoperformdutiesandensurethatallshareholdersenjoyequalrights,facilitateshareholders'participationinthegeneralmeetingasfaraspossible,andenablethemtofullyexercisetheirrightsasshareholders.Theconveningmethod,procedure,votingmethodandresolutioncontentofDRCO'sgeneralmeetingofshareholdersareinlinewiththerequirementsofrelevantlawsandregulations,normativedocuments,articlesofassociation,rulesofshareholders'meetingoflistedcompaniesandrulesofprocedureofshareholders'meeting,andshallbewitnessedbylawyersonthespotandissuelegalopinions.Theconveningandresolutionofthegeneralmeetingofshareholdersarelegalandeffective.Thereisnoviolationofrelevantlawsandregulationstoexercisefunctionsandpowers.
(III)DirectorsandtheBoardofDirectorsDRCO'sboardofdirectorshas9directors,including3independentdirectors.Thenumberandcompositionoftheboardofdirectorssatisfytherequirementsofrelevantlaws,regulationsandtheArticlesofAssociation.Duringthereportingperiod,DRCOheldatotaloffourboardmeetings,allofwhichwereconvenedandheldinaccordancewiththeproceduresstipulatedintheArticlesofAssociation,theRulesofProcedureoftheBoardofDirectorsandotherrelevantlawsandregulations,votedandformedresolutionsinstrictaccordancewiththerelevantprovisions,submittedmattersrequiringconsiderationatgeneralmeetingsforconsiderationanddecisionatgeneralmeetings,effectivelyperformedthedutiesauthorizedbythegeneralmeetings,strictlyimplementedtheresolutionspassedbygeneralmeetings,diligentlyandconscientiouslycarriedoutvarioustasksandactivelysafeguardedtheinterestsofDRCOanditsshareholders.Theholdingofboardmeetingsandthecontentsofresolutionsofthecompanyarelegalandeffective,andthereisnoviolationofrelevantlawsandregulationstoexercisepower.Theindependentdirectorsconscientiouslyfulfilledtheirresponsibilitiesandgavefullplaytotheirfunctionsofparticipationindecision-making,supervisionandcounterbalance,andprofessionalconsultingontheBoardofDirectors,andremainedindependent,objective,andprudent,tosafeguardtheoverallinterestsofDRCOandthelegitimaterightsandinterestsofminorityshareholders.(IV)SupervisorsandtheBoardofSupervisorsDRCO'sBoardofSupervisorshas3supervisorsincluding1employeerepresentative.ThenumberandcompositionoftheBoardofSupervisorsmeettherequirementsofrelevantlaws,regulationsandtheArticlesofAssociation.Duringthereportingperiod,DRCO'sBoardofSupervisorsheldfourmeetingsinaccordancewiththerequirementsofrelevantlawsandregulations.ByattendingthegeneralmeetingsandtheBoardmeetings,supervisorsexercisedstrictsupervisionoverDRCO'sstandardizedoperation,businessactivities,materialmatters,financialpositionandtheperformanceofdutiesbydirectorsandseniormanagement,effectivelysafeguardingtheinterestsofshareholders.ThemeetingsoftheBoardofSupervisorswereconvenedinalawfulandvalidmanner,andtherewasnoviolationofrelevantlawsandregulationsbythesupervisorsinexercisingtheirpowers.(V)InformationDisclosureandTransparencyInstrictcompliancewiththeRulesGoverningtheListingofStocksonShenzhenStockExchange,theAdministrativeMeasuresforInformationDisclosureofListedCompany,andotherlaws,regulations,rulesandregulatorydocuments,aswellastheArticlesofAssociation,DRCOearnestlyfulfilledtheobligationofinformationdisclosureandappointedtheBoardSecretarytotakechargeoftheinformationdisclosureworkandensureinformationdisclosureinatruthful,accurate,timely,fairandcompletemanner.Duringthereportingperiod,DRCOdesignatedSecuritiesTimes,SecuritiesDaily,ChinaSecuritiesJournal,ShanghaiSecuritiesNewsandCNINFO(www.cninfo.com.cn)asthenewspapersandwebsitesforinformationdisclosuretoensureallshareholdershaveequalaccesstoinformation.(VI)ManagementofInvestorRelationsDRCOalwaysvaluesinvestorrelations,andcontinuestobuildandexploreaninvestorrelationsmanagementmodel,promotetwo-waycommunicationwithinvestors,andprotectinvestorinterests.During
thereportingperiod,DRCOstrictlyobservedrelevantlawsandregulationssuchastheGuidelinesonInvestorRelationsManagementforListedCompanies,andinternalsystemssuchasthe“ArticlesofAssociation”,andfollowedthebasicprinciplesof"fullcompliance,investorequality,proactivecommunication,honestyandgoodfaith",toensureallinvestorshadequalaccesstoitsinformation.DRCObuiltaperfectinvestorrelationsmanagementsystem,setupaspecialpostforinvestorrelationsmanagement,andcontinuouslystandardizedtheinvestorrelationsmanagementprocesstoenhancecommunicationwithexistingandpotentialinvestors,andimproveinvestors'understandingandrecognitionofthecompany.Smoothcommunicationwithinvestorswasensuredtothegreatestextentthroughhotline,newmediaplatforms,officialaccounts,emailandthe“InvestorRelations”columnonitswebsite,aswellason-sitereception.(VII)StakeholdersDRCOactivelyfulfillsitscorporatesocialresponsibility,fullyrespectsandsafeguardsthelegitimaterightsandinterestsofrelevantstakeholders,strivestoachieveaharmoniousbalanceamongtheinterestsofshareholders,employeesandsociety,andcontinuestopromotethesustainableandhealthydevelopmentofDRCO.Inaccordancewithrelevantlaws,regulationsandregulatorydocumentssuchasthe"TheNo.2GuidelinesoftheShenzhenStockExchangeforSelf-DisciplineandRegulationofListedCompanies-StandardizedOperationofCompaniesListedonChiNextMarket",DRCOhasissuedthe2023Environmental,SocialandGovernanceReport,asdetailedinthe“2023ESGReport”disclosedbyDRCOonwww.cninfo.com.cnon27April2024.Whetherthereisanysignificantdifferencebetweentheactualsituationofcorporategovernanceandthelaws,administrativeregulationsandtheprovisionsonthegovernanceoflistedcompaniesissuedbytheCSRC
□Yes?NoThereisnosignificantdifferencebetweentheactualsituationofcorporategovernanceandthelaws,administrativeregulationsandtheprovisionsonthegovernanceoflistedcompaniesissuedbytheCSRC.II.IndependenceofDRCOfromControllingShareholdersandActualControllersinAsset,Personnel,Finance,InstitutionandBusinessDRCOoperatesinaccordancewiththerequirementsofThecompanyLawofPRC,theSecuritiesLawandotherrelevantlawsandregulations,andtheArticlesofAssociation;andhasestablishedandimprovedthecorporategovernancestructure.Therefore,DRCOisindependentofthecontrollingshareholders,theactualcontrollersandotherenterprisescontrolledbythemintermsofassets,personnel,finance,institutionsandbusiness,andenjoysassetintegrityandindependenceofbusinessandtheabilitytooperateindependentlyinthemarket.(I)AssetintegrityDRCOhasthebusinesssystemandrelatedassetsrelatedtotheoperation,legallyownstheownershipoforrighttousethetrademarks,patentsandnon-patentedtechnologiesrelatedtotheoperation,andhasitsownrawmaterialprocurementsystemandproductsalessystem.DRCOhasclearandcompleteownershipofits
assets,andenjoysindependentcontrolanddominationoverallassets.DRCOhasnotprovidedguaranteesforthedebtsofshareholderswithitsassets,interestsorcreditworthiness,anddoesnothaveassetsorfundsbeingillegallyoccupiedbycontrollingshareholderstothedetrimentofDRCO'sinterestsandrelianceonshareholdersandotherinstitutions.(II)PersonnelindependenceThedirectors,supervisorsandseniormanagersofDRCOareelectedinstrictaccordancewiththerelevantprovisionsofDRCOLawandtheArticlesofAssociation;thegeneralmanager,thedeputygeneralmanager,thepersoninchargeoffinance,theBoardsecretaryandotherseniormanagersofDRCOneitherholdpositionsotherthandirectorandsupervisorinDRCO’scontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem,norreceiveremunerationfromDRCO’scontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem;thefinancialpersonnelofDRCOdonotworkpart-timeintheorganizationsofcontrollingshareholdersortheactualcontrollersandotherenterprisescontrolledbythem.(III)FinancialindependenceDRCOhassetupanindependentfinancialdepartmentwithfull-timeaccountingpersonnel,andestablishedanindependentfinancialaccountingsystemandfinancialmanagementpoliciestomakefinancialdecisionsindependentlyinstrictaccordancewithaccountinglawsandregulationsincludingtheAccountingLawofthePeople'sRepublicofChina.DRCOhasastandardizedfinancialaccountingsystemandfinancialmanagementpoliciesforbranchesandsubsidiaries;DRCOdoesn’tsharebankaccountswithcontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.(IV)InstitutionalindependenceDRCOhassetupanddefinedtheresponsibilitiesandrightsofthegeneralmeetingofshareholders,theBoardofDirectors,theBoardofSupervisorsandotherbodiesfordecision-making,operationmanagementandsupervision.andsupervision.Therefore,DRCOhasestablishedastandardizedandeffectivecorporategovernancestructure.Basedonthedevelopmentneeds,DRCOhasestablishedaseriesofinternaloperationandmanagementinstitutionsthatindependentlyexercisetherightofoperationandmanagement,andthereisnoinstitutionalmixingwiththecontrollingshareholders,theactualcontrollerandotherenterprisesundertheircontrol.(V)BusinessindependenceDRCOhasanindependentandcompleteresearchanddevelopment,design,procurementandsalesbusinesssystem,withtheabilitytodirectlyconductbusinessoperationbyitselfonthemarket.DRCO'sbusinessisindependentofthecontrollingshareholders,theactualcontrollersandotherenterprisesundertheircontrol.BetweenDRCOanditscontrollingshareholders,theactualcontrollersandotherenterprisesundertheircontrol,thereisneitherhorizontalcompetitionthathasamaterialadverseeffectontheissuer,noranyconnectedtransactionthatmateriallyimpactedtheindependenceandwasobviouslyunfair.III.HorizontalCompetition
□Applicable?Notapplicable
IV.AnnualGeneralMeetingsandExtraordinaryGeneralMeetingsHeldduringReportingPeriod
1.Generalmeetingsofshareholdersduringthereportingperiod
Session
| Session | Typeofmeeting | Percentageofattendinginvestors | Dateofconvening | Dateofdisclosure | Resolutionofmeeting |
| TheFirstExtraordinaryGeneralMeetingofShareholdersin2023 | ExtraordinaryGeneralMeetingofShareholders | 88.19% | January17,2023 | January17,2023 | Fordetails,pleaserefertotheAnnouncementontheResolutionoftheFirstExtraordinaryGeneralMeetingofShareholdersin2023publishedonwww.cninfo.com.cn(No.2023-003) |
| 2022AnnualGeneralMeetingofShareholders | Annualgeneralmeetingofshareholders | 88.18% | May26,2023 | May26,2023 | Fordetails,pleaserefertotheAnnouncementfortheResolutionofthe2022AnnualGeneralMeetingofShareholderspublishedonwww.cninfo.com.cn(No.2023-033) |
2.Preferredshareholderswhosevotingrightshavebeenrestoredrequesttoconveneanextraordinarygeneralmeetingofshareholders
□Applicable?NotapplicableV.WeightedVotingRightArrangement
□Applicable?Notapplicable
VI.CorporateGovernanceofRed-chipCompany
□Applicable?NotapplicableVII.Directors,SupervisorsandSeniorManagement
1.Basicinformation
Name
| Name | Gender | Age | Position | Employmentstatus | Startdateoftenure | Enddateoftenure | Numberofsharesheldatthebeginningoftheperiod(shares) | Numberofsharesincreasedduringthecurrentperiod(shares) | Numberofsharesincreasedduringthecurrentperiod(shares) | Otherincreasesordecreases(shares) | Numberofsharesheldatendofcurrentperiod(shares) | Reasonsforchangesinshares |
| ZhangGuotao | Male | 38 | Chairman | Incumbent | July11,2019 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| ZhangGuotao | Male | 38 | GeneralManager(President) | Appointmentandremoval | July11,2019 | August25,2023 | 0 | 0 | 0 | 0 | 0 | |
| LuYiwen | Female | 37 | Director | Incumbent | July11,2019 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| LuYiwen | Female | 37 | GeneralManager(Presiden | Appointmentand | August25,2023 | July7,202 | 0 | 0 | 0 | 0 | 0 |
t)
| t) | removal | 5 | |||||||||
| WeiQingxing | Male | 41 | Director,DeputyGeneralManager(VicePresident) | Resigned | July1,2019 | March31,2023 | 0 | 0 | 0 | 0 | 0 |
| HuangShuirong | Male | 49 | Director,DeputyGeneralManager(VicePresident),SecretaryoftheBoardandChiefFinancialOfficer | Incumbent | July11,2019 | July7,2025 | 0 | 0 | 0 | 0 | 0 |
| HuXiaoming | Male | 43 | Director | Incumbent | July11,2019 | July7,2025 | 0 | 0 | 0 | 0 | 0 |
| ChenQisheng | Male | 38 | Director | Incumbent | March8,2021 | July7,2025 | 0 | 0 | 0 | 0 | 0 |
| ZhaoRanran | Female | 34 | Director | Incumbent | May26,2023 | July7,2025 | 0 | 0 | 0 | 0 | 0 |
| LiYang | Male | 41 | Independent | Incumbent | January15, | July7,202 | 0 | 0 | 0 | 0 | 0 |
Director
| Director | 2020 | 5 | ||||||||||
| LiangJun | Male | 46 | IndependentDirector | Incumbent | January15,2020 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| ZhongMin | Male | 51 | IndependentDirector | Incumbent | November24,2020 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| HuangYingfeng | Female | 35 | ChairmanoftheBoardofSupervisors | Incumbent | July8,2022 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| ShenAi | Female | 34 | Supervisor | Incumbent | July8,2022 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| YinLuwen | Male | 44 | EmployeeRepresentativeSupervisor | Resigned | July11,2019 | April10,2023 | 0 | 0 | 0 | 0 | 0 | |
| WuWanhong | Female | 30 | EmployeeRepresentativeSupervisor | Incumbent | April10,2023 | July7,2025 | 0 | 0 | 0 | 0 | 0 | |
| Total | -- | -- | -- | -- | -- | -- | 0 | 0 | 0 | 0 | 0 | -- |
Whetheranydirectors,supervisorsandseniorofficersweredismissedduringthereportingperiod?Yes□No
1.OnMarch31,2023,theBoardofDirectorsreceivedaresignationinwritingfromMr.WeiQingxing,adirectorandseniorexecutiveofDRCO,whoappliedforresignationfromhispositionsasdirector,memberoftheRemunerationandAppraisalCommitteeanddeputygeneralmanager(vicepresident)forpersonal
reasons.Afterhisresignation,Mr.WeiQingxingwillnolongerholdanypositioninDRCO.
2.OnApril10,2023,theSupervisoryCommitteereceivedawrittenresignationfromMr.YinLuwen,whoappliedforresignationfromhispositionasEmployeeRepresentativeSupervisorasaresultofworkadjustment.Asattheendofthereportingperiod,henolongerheldanypositioninDRCO.
3.OnAugust25,2023,theBoardofDirectorsreceivedawrittenresignationfromMr.ZhangGuotao,whoappliedforresignationfromthepositionofGeneralManager(President)soastofocusmoreonDRCO'slong-termdevelopmentstrategyandplanning,buthewouldcontinuetoserveasChairmanoftheSecondSessionoftheBoardofDirectorsandChairmanoftheStrategyandSustainableDevelopmentCommittee.Changesindirectors,supervisorsandseniormanagementofDRCO?Applicable□Notapplicable
Name
| Name | Position | Type | Date | Reason |
| WeiQingxing | Director,DeputyGeneralManager(VicePresident) | Resigned | March31,2023 | Resignforpersonalreasons |
| YinLuwen | Employeerepresentativesupervisor | Resigned | April10,2023 | WorkAdjustment |
| WuWanhong | Employeerepresentativesupervisor | Elected | April10,2023 | Electedbytheemployeerepresentativemeeting |
| ZhaoRanran | Director | Elected | May26,2023 | Electedbythegeneralmeeting |
| ZhangGuotao | GeneralManager(President) | Dismissed | August25,2023 | WorkAdjustment |
| LuYiwen | GeneralManager(President) | Appointed | August25,2023 | AppointedbytheBoardofDirectors |
2.PositionsProfessionalbackgroundandcareerexperienceofDRCO'sincumbentdirectors,supervisorsandseniormanagementandtheircurrentmajorresponsibilitiesinDRCO.
(1)ProfilesoftheBoardmembers
①Mr.ZhangGuotaoMr.ZhangGuotao,ChairmanoftheBoard,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1985,heholdsanEMBAdegreefromCheungKongGraduateSchoolofBusinessandisthefounderofDRCO.Mr.Zhanghasreceivedawardsincludingthe"OutstandingYoungEntrepreneurAward(40yearsandbelow)"andthe"Top10LeadersofAsianBrands".HewastheexecutivedirectorandgeneralmanagerofDarryCorporationandnowactsasDRCO’schairman,aswellastheexecutivedirector&generalmanagerofDRInvestment,QianhaiWendi,WendiDesign,WendiTechnologyandEveryYearTravelPhotography.
②Ms.LuYiwenMs.LuYiwenisthedirectorofDRCO.SheisaChinesecitizenwithoutpermanentresidencepermitoutside
China.Bornin1987,sheholdsanEMBAdegreefromChinaEuropeInternationalBusinessSchool(CEIBS).AsthefounderofDRCO,shehasreceivedawardssuchas"Forbes30Under30China","HurunChinaUnder30sToWatch"and"Top10LeadersofAsianBrands".Ms.LuwaseverthevicepresidentandsupervisorofDarryCorporationandnowactsasthedirectorandgeneralmanager(president),thesupervisorofDRInvestment,thesupervisorofEveryYearTravelPhotography,thesupervisorofWendiDesignandWendiTechnology.
③Mr.HuangShuirongMr.HuangShuirong,thedirectorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1974,Mr.Huangreceivedhismaster’sdegreefromZhongnanUniversityofEconomicsandLaw,andheisasenioraccountant.Mr.HuangonceservedasthefinancialmanagerofGuangdong-basedJianlibaoGroup,thechieffinancialofficerofXilongChemicalCo.,Ltd.,thegeneralmanagerofthefinancialcenteratXilongChemicalCo.,Ltd.,,andthefinancialmanagerofTiandiNo.1BeverageInc.;sincejoiningDRCOin2018,hehasheldsuchpositionsasthevicepresidentandfinancialmanagerofDarryCorporationandnowisthedirector,deputygeneralmanager(vicepresident),BoardsecretaryandfinancialmanagerofDRCO.
④Mr.HuXiaomingMr.HuXiaoming,thedirectorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1980,hereceivedhisbachelor’sdegreefromShenzhenUniversity.Mr.HuusedtobetheplanningmanagerofGuangzhouHimalayanAdvertisingCo.,Ltd.,theseniorbrandplanningmanagerofJiaduobao(China)BeverageCo.,Ltd.,thebranddirectorofShenzhenShengziTechnologyCo.,Ltd.,andthedeputybranddirectorofYulongComputerCommunicationTechnology(Shenzhen)Co.,Ltd.SincejoiningDRCOin2016,hehasheldsuchpositionsasthebranddirectorandstrategydirectoratthemarketcenterofDarryCorporation,andnowheactsasthedirectorandstrategyheadatDRCO.
⑤Mr.ChenQishengMr.ChenQisheng,thedirectorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1986,hereceivedhisbachelor’sdegreeandholdstheCMAcertificate.HeonceworkedinChowTaiFookJewelry(Shenzhen)Co.,Ltd.,KingdeeSoftware(China)Co.,Ltd.andShenzhenJianjiaqinJewelryCo.,Ltd.SincejoiningDRCOin2015,hehaseverheldthepositionofaseniorfinancialmanagerandnowactsasthedirectorandtheresponsibleheadforbusinessandfinance.
⑥Ms.ZhaoRanranMs.ZhaoRanran,directorofDRCO,saChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1989,holdsabachelor'sdegreefromCentralChinaNormalUniversity.ShejoinedthecompanyinJuly2013andhaveservedasSeniorManagerandDeputyDirectorofUserOperations;FromJuly2019toJuly2022,servedastheChairmanofthefirstSupervisoryBoardofthecompany;shehavebeenservingastheheadofthecompany'sbrandcommunicationdepartmentsinceJuly2019.
⑦Mr.LiYang
Mr.LiYang,theindependentdirectorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1983,hereceivedhisPhDdegreefromColumbiaUniversityandisanAssociateProfessorofCheungKongGraduateSchoolofBusiness.Since2020,hehasbeenanindependentdirectorofDRCO,aswellasanindependentdirectorof360LudashiHoldingsCo.,Ltd.,WestingareaSupplyChain(Shanghai)Co.,Ltd.andNewTianliTechnologyCo.,Ltd.
⑧Mr.LiangJunMr.LiangJun,theindependentdirectorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1977,hereceivedhismaster'sdegreefromRenminUniversityofChina,andtheEMBAdegreefromChinaEuropeInternationalBusinessSchool.Mr.LiangusedtobethemarketingmanagerofconsumergoodssubsidiaryunderHumanwellHealthcare,theboardsecretaryofShenzhenSinobiowayXinpengBiomedicineCo.,Ltd.,theseniorpartnerandfundmanagerofShenzhen-basedRabbitFund;hehasbeenservingastheindependentdirectorofDRCOsince2020.
⑨Mr.ZhongMinMr.ZhongMin,theindependentdirectorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1973,hereceivedhisbachelor’sdegreefromHangzhouDianziUniversityandholdstheCPAcertificate.Mr.ZhongeverservedasaseniormanagerofShenzhenTongrenAccountingFirm,asalariedpartnerofShenzhenPengchengEnterpriseManagementConsultingCo.,Ltd.,thechieffinancialofficerofShenzhenYuezhongInvestmentHoldingsCo.,Ltd.,theindependentdirectorofGuangzhouFangbangElectronicsCo.,Ltd..HehasbeenactingastheindependentdirectorofDRCOsince2020,andalsoadirectorofShenzhenYuezhongInvestmentHoldingsCo.,Ltd.andanindependentdirectorofShenzhenXunfangTechnologyCo.,Ltd.
(2)ProfilesofthemembersoftheBoardofSupervisors
①Ms.HuangYingfengMs.HuangYingfeng,ChairmanoftheBoardofSupervisors,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1989,shereceivedhermaster'sdegreefromShenzhenUniversity.SheusedtobethescreenwriterofShenzhenAllThingsGrowthMediaCo.,Ltd.,thecontentdirectorofBeijingOctober5thFilmMediaCo.,Ltd,andthegeneralmanagerofShenzhenWeiwanDaixuTechnologyCo.,Ltd.;ShejoinedDRCOin2020andnowactsastheChairmanoftheBoardofSupervisorsandtheresponsibleheadforbrandcontentDepartment.
②Ms.ShenAiMs.ShenAi,thesupervisorofDRCO,isaChinesecitizenwithoutpermanentresidencepermitoutsideChina.Bornin1989,shereceivedherbachelor’sdegreefromShenzhenUniversity.SincejoiningDRCOin2012,shehasheldthepositionsincludingthecopywriter,copywritermanagerandcopywriterexpertatDarryCorporation(戴瑞有限).NowsheactsasthesupervisorandUCCoperationmanageratDRCO.
③Ms.WuWanhongMs.WuWanhong,theemployeerepresentativesupervisor,isaChinesecitizenwithoutpermanent
residencepermitoutsideChina.Bornin1993,shereceivedherbachelor’sdegreefromGuangzhouUniversity.SheeverworkedasanaccountantinMinhuaFurnitureManufacturing(Shenzhen)Co.,Ltd.SincejoiningDRCOin2017,Ms.Wuhasheldsuchpositionsastheretailaccountingmanagerandthesenioraccountingmanager.NowsheservesasthebusinessandfinancemanagerinDRCO.
(3)Profilesofseniormanagement
①Ms.LuYiwenMs.LuYiwencurrentlyservesasthedirectoranddeputygeneralmanager(vicepresident).Forherbiographies,pleaserefertothesection“ProfilesofBoardMembers”.
②Mr.HuangShuirongMr.HuangShuirongcurrentlyservesasthedirectoranddeputygeneralmanager(vicepresident).Forhisbiographies,pleaserefertothesection“ProfilesofBoardMembers”.Positionsinshareholderentity?Applicable□Notapplicable
Nameofemployee
| Nameofemployee | Nameofshareholderentity | Positionheldinshareholderentity | Startdateoftenure | EndDateoftenure | Whetherreceiveremunerationsinshareholderentity |
| ZhangGuotao | DRInvestment(Zhuhai)Co.,Ltd. | ExecutiveDirector,GeneralManager | November24,2015 | No | |
| ZhangGuotao | GongqingchengWendiNo.1InvestmentManagementPartnership(LP) | ExecutivePartner(withaproxyappointed) | December1,2017 | No | |
| ZhangGuotao | GongqingchengWendiNo.2InvestmentManagementPartnership(LP) | ExecutivePartner(withaproxyappointed) | December1,2017 | No | |
| ZhangGuotao | GongqingchengWendiNo.3Investment | ExecutivePartner(witha | December4,2017 | No |
ManagementPartnership(LP)
| ManagementPartnership(LP) | proxyappointed) | ||||
| LuYiwen | DRInvestment(Zhuhai)Co.,Ltd. | Supervisor | November24,2015 | No | |
| Descriptionofthepositionintheshareholderentity | Notapplicable | ||||
Positioninotherentity?Applicable□Notapplicable
| Nameofperson | Nameofotherentity | Positionheldinotherentity | Startdateoftenure | EndDateoftenure | Whetherreceiveremunerationsinotherentity |
| ZhangGuotao | ShenzhenQianhaiWendiManagementConsultingCo.,Ltd. | ExecutiveDirector,GeneralManager | September5,2017 | No | |
| ZhangGuotao | ZhuhaiWendiDesignConsultingCo.,Ltd. | ExecutiveDirector,Manager | July26,2021 | No | |
| ZhangGuotao | ZhuhaiWendiTechnologyCo.,Ltd. | ExecutiveDirector,Manager | July27,2021 | No | |
| ZhangGuotao | ShenzhenEveryYearTravelPhotographyCultureCo.,Ltd. | ExecutiveDirector,GeneralManager | August10,2021 | No | |
| LuYiwen | ShenzhenEveryYearTravelPhotographyCultureCo.,Ltd. | Supervisor | December13,2019 | No | |
| LuYiwen | ZhuhaiWendiTechnologyCo.,Ltd. | Supervisor | July27,2021 | No | |
| LuYiwen | ZhuhaiWendiDesignConsultingCo.,Ltd. | Supervisor | July26,2021 | No | |
| HuangShuirong | Shenzhen | Executive | March30, | No |
RongzhiLianchuangInvestmentEnterprise(LP)
| RongzhiLianchuangInvestmentEnterprise(LP) | Partner | 2015 | |||
| LiYang | 360LudashiHoldingsLimited | IndependentNon-ExecutiveDirector | June5,2019 | Yes | |
| LiYang | CheungKongGraduateSchoolofBusiness | AssociateProfessor | July1,2017 | Yes | |
| LiYang | WestingareaSupplyChain(Shanghai)Co.,Ltd. | IndependentDirector | February09,2022 | Yes | |
| LiYang | XintianliTechnologyCo.,Ltd. | IndependentDirector | July11,2022 | Yes | |
| ZhongMin | BeijingZhierxingCultureMediaCo.,Ltd. | Director | November14,2013 | No | |
| ZhongMin | ShenzhenYuezhongCultureGroupCo.,Ltd | Director | January16,2019 | September1,2023 | No |
| ZhongMin | ShenzhenYuezhongTianzeRealEstateDevelopmentCo.,Ltd. | Director | January5,2013 | May22,2023 | No |
| ZhongMin | ShenzhenYuezhongInvestment | Director | December26,2006 | Yes |
HoldingCo.,Ltd.
| HoldingCo.,Ltd. | |||||
| ZhongMin | ShenzhenBinhaiPenghuiFundManagementCo.,Ltd. | Chairman | November15,2018 | No | |
| ZhongMin | GuangzhouFangbangElectronicsCo.,Ltd. | IndependentDirector | December12,2016 | Yes | |
| Descriptionofpositioninotherentity | None | ||||
WhetherDRCO'scurrentandresigneddirectors,supervisorsandseniormanagementwerepenalizedbysecuritiesregulatorsinthepastthreeyears
□Applicable?Notapplicable
3.Remunerationsofdirectors,supervisorsandseniormanagement
?Decision-makingprocess,basisfordeterminationandactualpaymentofremunerationsfordirectors,
supervisorsandseniormanagementTheremunerationofDRCO'sdirectorsandsupervisorsisdeterminedinaccordancewiththefollowingprinciples:non-independentdirectorsdonotreceiveremunerationorallowancesfordirectorsbutarecompensatedaccordingtothespecificpositiontheyholdinDRCO;independentdirectorsreceiveallowances;supervisorsdonotreceiveremunerationorallowancesbutarecompensatedaccordingtothespecificpositiontheyholdinDRCO.TheremunerationofDRCO'sdirectors,supervisors,seniormanagementandothercorepersonnelconsistsmainlyofbasicsalary,positionbenefitsandperformance-basedincentives.TheremunerationplanfordirectorsaretobeconsideredandapprovedbytheBoardandreportedtothegeneralmeetingthroughtheBoardforconsiderationandapproval.Theremunerationplanforsupervisorsareconsideredandapprovedbythegeneralmeetings;theremunerationplanforseniormanagementisconsideredandapprovedbytheboardmeetings;theremunerationplanforothercorepersonnelwhodonotconcurrentlyserveasdirectors,supervisorsorseniormanagementisdeterminedaccordingtotheremunerationplanformulatedbyDRCO’smanagement.Duringthereportingperiod,theremunerationofDRCO'sdirectors,supervisorsandseniormanagementhasbeenpaidinfull.?Actualpaymentfortheremunerationofdirectors,supervisorsandseniormanagement
Unit:RMB0’000
Name
| Name | Positionosition | Gender | Age | Employmentstatus | Totalpre-taxcompensationreceivedfromDRCO | WhetherreceivecompensationfromanyconnectedpartyofDRCO |
| ZhangGuotao | Male | 38 | Chairman | Incumbent | 417.72 | No |
| LuYiwen | Female | 37 | Chairman,GeneralManager(President) | Incumbent | 190.8 | No |
| WeiQingxing | Male | 41 | Director,DeputyGeneralManager(VicePresident) | Resigned | 80.16 | No |
| HuangShuirong | Male | 49 | Director,DeputyGeneralManager(VicePresident),SecretaryoftheBoardandFinancialManager | Incumbent | 134.11 | No |
| HuXiaoming | Male | 43 | Director | Incumbent | 67.12 | No |
| ChenQisheng | Male | 38 | Director | Incumbent | 70.21 | No |
| ZhaoRanran | Female | 34 | Director | Incumbent | 56.05 | No |
| LiYang | Male | 41 | Independent | Incumbent | 10 | No |
Director
| Director | ||||||
| LiangJun | Male | 46 | IndependentDirector | Incumbent | 10 | No |
| ZhongMin | Male | 51 | IndependentDirector | Incumbent | 10 | No |
| HuangYingfeng | Female | 35 | ChairmanoftheBoardofSupervisors | Incumbent | 84.3 | No |
| ShenAi | Female | 34 | Supervisor | Incumbent | 43.26 | No |
| YinLuwen | Male | 44 | EmployeeRepresentativeSupervisor | Resigned | 12.11 | No |
| WuWanhong | Female | 30 | EmployeeRepresentativeSupervisor | Incumbent | 33.04 | No |
| Total | -- | -- | -- | -- | 1,218.88 | -- |
Othernotes?Applicable□NotapplicableDuringthereportingperiod,thepre-taxremunerationreceivedbyChairmanZhangGuotaofromDRCOincreasedascomparedto2022,whichwasmainlyduetoanincreaseintheexchangeratefortheremunerationinHongKongdollarsover2022.VIII.PerformanceofDutiesbyDRCODirectorsduringReportingPeriod
1.BoardofDirectorsinthereportingperiod
| Meeting | Dateofconvening | Dateofdisclosure | Resolutionofmeeting |
| 5thMeetingoftheSecondSessionofBoardofDirectors | April26,2023 | April28,2023 | Fordetails,pleaserefertotheAnnouncementfortheResolutionofthe5thMeetingoftheSecondSessionofBoardofDirectorspublishedonwww.cninfo.com.cn(No. |
2023-029)
| 2023-029) | |||
| 6thMeetingoftheSecondSessionofBoardofDirectors | August25,2023 | August29,2023 | Fordetails,pleaserefertotheAnnouncementfortheResolutionofthe6thMeetingoftheSecondSessionofBoardofDirectorspublishedonwww.cninfo.com.cn(No.2023-047) |
| 7thMeetingoftheSecondSessionofBoardofDirectors | October25,2023 | ReviewandpasstheResolutionontheThirdQuarterReport2023 | |
| 8thMeetingoftheSecondSessionofBoardofDirectors | December28,2023 | December30,2023 | Fordetails,pleaserefertotheAnnouncementfortheResolutionofthe8thMeetingoftheSecondSessionofBoardofDirectorspublishedonwww.cninfo.com.cn(No.2023-062) |
2.AttendanceofdirectorsattheBoardmeetingsandthegeneralmeetings
| AttendanceofdirectorsattheBoardmeetingsandthegeneralmeetings | |||||||
| Nameofdirector(s) | RequiredattendanceinBoardmeetingsduringtheyear | AttendanceinBoardmeetingsinperson | AttendanceinBoardmeetingsviacommunicationequipment | Attendancebyproxy | NumberofabsencesfromBoardmeetings | Absencefromtwoconsecutivemeetingsornot | Attendanceatgeneralmeetings |
| ZhangGuotao | 4 | 3 | 1 | 0 | 0 | No | 1 |
| LuYiwen | 4 | 3 | 1 | 0 | 0 | No | 1 |
| Wei | 0 | 0 | 0 | 0 | 0 | No | 1 |
Qingxing
| Qingxing | |||||||
| HuangShuirong | 4 | 4 | 0 | 0 | 0 | No | 2 |
| HuXiaoming | 4 | 4 | 0 | 0 | 0 | No | 2 |
| ChenQisheng | 4 | 4 | 0 | 0 | 0 | No | 2 |
| ZhaoRanran | 3 | 3 | 0 | 0 | 0 | No | 1 |
| LiYang | 4 | 0 | 4 | 0 | 0 | No | 2 |
| LiangJun | 4 | 1 | 3 | 0 | 0 | No | 2 |
| ZhongMin | 4 | 0 | 4 | 0 | 0 | No | 2 |
DescriptionofabsencefromtwoconsecutiveBoardmeetingsinpersonNotApplicable。
3.DissentofdirectorstocorporateissuesDissentofdirectorstorelevantissuesofDRCO
□Yes?NoDuringthereportingperiod,thedirectorsdidnotraiseanyobjectiontotherelevantmattersofDRCO.
4.OtherinformationondutyperformanceofdirectorsWhetherthesuggestionsofthedirectorsareadoptedornot?Yes□NoDescriptionsonwhetherthesuggestionsofthedirectorsareadoptedornotDuringthereportingperiod,alldirectorsofDRCOperformedtheirdutiesfaithfullyanddiligently,activelyattendedtheBoardmeetingsandgeneralmeetings,anddeliberatedallproposalsinaccordancewithrelevantlaws,regulationsandnormativedocumentsincludingDRCOLaw,theSecuritiesLaw,theRulesGoverningtheListingofStocksonShenzhenStockExchange,theNo.2GuidelinesoftheShenzhenStockExchangeforSelf-DisciplineandRegulationofListedCompanies-StandardizedOperationofCompaniesListedonChiNextMarket,theArticlesofAssociation,theRulesofProcedureoftheBoardofDirectors,andtheWorkSystemforIndependentDirectors.BasedontheactualsituationofDRCO,alldirectorshavemadein-depthdiscussionsonDRCO'sbusinessactivities,financialstatus,majorissuesandothermatterstomakesuggestionsforDRCO'sbusinessdevelopment,fullyconsidertheinterestsanddemandsofminority
shareholders,enhancethescientificdecision-makingoftheboardofdirectorsinatimelymanner,andpromotethesustainableandhealthydevelopmentofDRCO/soperations.IX.SpecialCommitteesundertheBoardofDirectorsduringReportingPeriod
Nameofcommittee
| Nameofcommittee | Members | Numberofmeetingsheld | Dateofconvening | Contentsofthemeetings | Importantopinionsandsuggestions | Otherdescriptionsondutyperformance | Detailsofobjections(ifany) |
| AuditCommittee | ZhongMin,LiangJun,HuangShuirong | 5 | January9,2023 | Reviewthe“Resolutiononthe4Q2022WorkReviewand2023WorkPlanofDRCO’sAuditDepartment | TheAuditCommitteereviewedthemattersunderconsiderationinstrictaccordancewiththeArticlesofAssociation,theRulesofWorkoftheAuditCommitteeandrelevantlawsandregulations,fullycommunicatedwithDRCOandtheauditorsandunanimouslyapprovedrelevantresolutionsafterdiscussion. | 1.GuidetheinternalauditworkandplaytheroleoftheAuditDepartmentin"improvingcorporategovernance,addingvalueandachievingobjectives”.2.Communicatewiththeaccountingfirmontheworkplanandarrangementsfortheannualauditin2023,theprioritiesthereinandothermatters. | |
| April25,2023 | 1.Reviewthe“Resolutionon | TheAuditCommittee | 1.Communicatewiththe |
the2022AnnualReportandItsSummary”;
2.Reviewthe"Resolutiononthe2023Q1QuarterlyResults”
3.Reviewthe“Resolutiononthe2022FinancialResults;
4.Reviewthe"Resolutiononthe2022InternalControlSelfassessmentReport";
5.Reviewthe“Resolutionon2022AnnualReportonDepositandUseofProceeds”
6.Reviewthe“ResolutionontheStorageandUseofFundsRaisedin1Q2023”;
7.Reviewthe“ResolutiononRenewingEngagementofAuditInstitutionin2023”
8.Reviewthe“ResolutionontheWorkofDRCO’sAuditDepartmentin1Q2023”
| the2022AnnualReportandItsSummary”;2.Reviewthe"Resolutiononthe2023Q1QuarterlyResults”3.Reviewthe“Resolutiononthe2022FinancialResults;4.Reviewthe"Resolutiononthe2022InternalControlSelfassessmentReport";5.Reviewthe“Resolutionon2022AnnualReportonDepositandUseofProceeds”6.Reviewthe“ResolutionontheStorageandUseofFundsRaisedin1Q2023”;7.Reviewthe“ResolutiononRenewingEngagementofAuditInstitutionin2023”8.Reviewthe“ResolutionontheWorkofDRCO’sAuditDepartmentin1Q2023” | reviewedthemattersunderconsiderationinstrictaccordancewiththeArticlesofAssociation,theRulesofWorkoftheAuditCommitteeandrelevantlawsandregulations,andunanimouslyapprovedrelevantresolutionsafterdiscussionwithrelatedparties. | accountingfirmtoensurethatthefinancialstatementsgiveatrue,fairandcompletereflectionoftheoverallfinancialpositionofDRCO;2.GuidetheinternalauditworkandplaytheroleoftheAuditDepartmentin"improvingcorporategovernance,addingvalueandachievingobjectives”. |
August24,2023
| August24,2023 | 1.Reviewthe“Resolutiononthe2023InterimReportandItsSummary”;2.Reviewthe“Resolutionon2023InterimReportonDepositandUseofProceeds”3.Reviewthe“ResolutiononRevisionoftheInternalAuditManagementSystem”;4.Reviewthe“Resolutiononthe2023Q2WorkofDRCO’sAuditDepartment” | TheAuditCommitteereviewedthemattersunderconsiderationinstrictaccordancewiththeArticlesofAssociation,theRulesofWorkoftheAuditCommitteeandrelevantlawsandregulations,andunanimouslyapprovedrelevantresolutionsafterdiscussionwithrelatedparties. | GuidetheinternalauditworkandplaytheroleoftheAuditDepartmentin"improvingcorporategovernance,addingvalueandachievingobjectives”. |
| October24,2023 | 1.Reviewthe"Resolutiononthe2023Q3QuarterlyResults”2.Resolutiononreviewingthe“2023Q3SpecialReportonDepositandUseof | TheAuditCommitteereviewedthemattersunderconsiderationinstrictaccordancewiththeArticlesofAssociation,theRulesofWorkoftheAuditCommitteeand | GuidetheinternalauditworkandplaytheroleoftheAuditDepartmentin"improvingcorporategovernance,addingvalueandachievingobjectives” |
Proceeds”
3.Reviewthe“Resolutiononthe2023Q3WorkofDRCO’sAuditDepartment”
| Proceeds”3.Reviewthe“Resolutiononthe2023Q3WorkofDRCO’sAuditDepartment” | relevantlawsandregulations,andunanimouslyapprovedrelevantresolutionsafterdiscussionwithrelatedparties. | ||||
| December28,2023 | Reviewthe“ResolutiononRevisionoftheInternalAuditManagementSystem” | TheAuditCommitteereviewedthemattersunderconsiderationinstrictaccordancewiththeArticlesofAssociation,theRulesofWorkoftheAuditCommitteeandrelevantlawsandregulations,andunanimouslyapprovedtheresolutionafterdiscussion. | |||
| StrategyandSustainableDevelopment | ZhangGuotao,LiYang, | 2 | April26,2023 | Reviewthe“Resolutiononthe | TheStrategyandSustainable |
Committee
| Committee | HuXiaoming | SustainableDevelopmentReportfor2022” | DevelopmentCommittee,instrictaccordancewiththeArticlesofAssociation,theWorkingRulesoftheStrategyandSustainableDevelopmentCommitteeandrelevantlawsandregulations,unanimouslyapprovedtheresolutionafterdiscussion. | ||
| December28,2023 | Reviewthe“ResolutiononFormulatingtheESGSystemofDRCO” | TheStrategyandSustainableDevelopmentCommittee,instrictaccordancewiththeArticlesofAssociation,theWorkingRulesoftheStrategyandSustainableDevelopmentCommitteeandrelevantlawsandregulations, |
unanimouslyapprovedtheresolutionafterdiscussion.
| unanimouslyapprovedtheresolutionafterdiscussion. | |||||
| RemunerationandAppraisalCommittee | LiangJun、ZhongMin | 1 | April25,2023 | 1.Reviewthe“ResolutiononthePlanforRemunerationandAllowanceofDirectors”;2.Reviewthe“ResolutiononthePlanforRemunerationandAllowanceofSeniorManagement”; | TheRemunerationandAppraisalCommittee,instrictaccordancewiththeArticlesofAssociation,theWorkingRulesoftheRemunerationandAppraisalCommitteeandrelevantlawsandregulations,unanimouslyapprovedrelevantresolutionsafterin-depthdiscussion. |
| NominationCommittee | LiYang,LuYiwen,ZhongMin | 2 | April26,2023 | Reviewthe"ResolutiononNominatingZhaoRanranasaNonIndependent | TheNominationCommitteeconsideredthemattersunderconsideration |
DirectorCandidatefortheSecondBoardofDirectors"
| DirectorCandidatefortheSecondBoardofDirectors" | instrictaccordancewiththeArticlesofAssociation,theWorkingRulesoftheNominationCommittee,andrelevantlawsandregulations,andconductedaseriousreviewofthequalificationsofdirectorcandidates.Afterdiscussion,relevantnominationswereunanimouslyapproved. | |
| August25,2023 | Reviewthe“ResolutionontheAppointmentofDRCO’sGeneralManager” | TheNominationCommitteeconsideredthemattersunderconsiderationinstrictaccordancewiththeArticlesofAssociation,theWorkingRulesoftheNomination |
Committee,andrelevantlawsandregulations,andconductedaseriousreviewofthequalificationsofgeneralmanagercandidate.Afterdiscussion,relevantnominationwasunanimouslyapproved.
X.WorkofBoardofSupervisorsWhethertheBoardforSupervisorsidentifiedanyrisktoDRCOthroughsupervisoryactivitiesduringthereportingperiod.
□Yes?NoTheBoardofSupervisorshadnoobjectiontothemattersunderitssupervisionduringthereportingperiod.XI.EmployeesofDRCO
1.Employeenumber,professionalcomposition,andeducationalbackground
Committee,andrelevantlawsandregulations,andconductedaseriousreviewofthequalificationsofgeneralmanagercandidate.Afterdiscussion,relevantnominationwasunanimouslyapproved.NumberofcurrentemployeesoftheparentCompanyasoftheendofthereportingperiod(persons)
| NumberofcurrentemployeesoftheparentCompanyasoftheendofthereportingperiod(persons) | 2,595 |
| Numberofcurrentemployeesofmajorsubsidiariesasoftheendofthereportingperiod(persons) | 602 |
| Totalnumberofcurrentemployeesasoftheendofthereportingperiod(persons) | 3,197 |
| Totalnumberofpaidemployeesinthecurrentperiod(persons) | 3,197 |
| Numberofretiredemployeesforwhomtheparentcompanyanditsmajorsubsidiariesareresponsiblefortheretirementbenefits(persons) | 0 |
| Professionalcomposition | |
Category
| Category | Numberofpersons |
| Salespersonnel | 2,890 |
| Technicalpersonnel | 88 |
| Financialpersonnel | 59 |
| Administrativepersonnel | 160 |
| Total | 3,197 |
| Educationbackground | |
| Category | Quantity(person) |
| Master'sdegreeandabove | 43 |
| Bachelor’sdegree | 661 |
| Juniorcollegebelow | 2,493 |
| Total | 3,197 |
2.RemunerationpolicyDRCOcontinuestoimprovetheremuneration-drivenincentivemechanismtoensurethecomplianceofvariousremunerationmanagementactivities,aswellasexternalcompetitivenessandinternalfairnessandeffectiveincentives.DRCOhasaperfectsalarysystemwiththecompensationstructureandrangematchingtheranksandpositionsbytakingintoaccounttheinternalandexternalremunerationcontexts.Stickingtothestrategyofsettingpositionsandsalariesbasedonskills,DRCOofferscompetitivecompensationtotoptalents.Performance-basedincentivesforemployeesalignwithDRCO’sbusinessresults,enablingallstafftosharethebenefitsofthecorporategrowth.Theworkingenvironmentwithequalemphasisonefficiencyandfairness,Enableemployeestoworkinalovingenvironmentandlaysafoundationfortheenthusiasmandstabilityforemployeestoachieveself-fulfillment.
3.TrainingprogramDuringthereportingperiod,DRCOcontinuedtoimproveitsstafftrainingprograminlinewiththeannualstrategicplanningandstaffdevelopmentrequirements.Itdevelopedseparatetrainingprogramsfornewandexistingstaff,andtailor-madetrainingcoursesagreeingwithitsbusinessobjectives,soastoimprovethecomprehensivequalityofemployeesandboostoveralloperationalresults.Onlinelearningandofflineintensivetrainingwereregularlyorganizedfornewemployeesinfunctionaldepartmentstohelpthembetterunderstandthecorporateculture,brand,productsandprocesses,andfitintotheworkplacequickly.Theprofessionalcompetencetrainingformanagersinfunctionaldepartmentsimprovedthemanagers’understandingoftheCompany’sstrategicprioritiesandenhancedtheirstrategicexecutionability.Trainingforretailstafffocusedonbrandconceptinterpretation,professionalimprovementofworks,andsalesserviceenhancement,andlearningsessionsofvariedformswerelaunchednationwide,whichraisedthe
professionalknowledgeofterminalstores,enhancedtheprofessionalism,abilitytoexplaintheworksandserviceconsciousnessofemployees,andimprovedcustomerexperience.DRCOlaunched“TrueLoveSettingSail”and“SettingSailPremium+”programsthroughcooperationwithexternalagenciestocultivatenewemployeesandhelpthempassthetransitionperiodandmeetpostrequirements.Acoupleofpracticalcoursesweredevelopedtoempoweremployeesintermsofvocationalpsychology,salesskillsandcontinuousdevelopment.TohelpstoremanagersfullyunderstandtheCompany’sdevelopmentstrategyandsalesplanning,DRCOworkedoutastoremanagertrainingprogramwithavarietyofspecializedcoursestohelpstoremanagerseffectivelymanagebusinessdataandimprovedecision-makingabilitythroughonlinelearningandofflinetutoring.Theabove-mentionedprogramsenhancedoverallqualificationandprofessionalskillsofDRCO’semployees,addressedtheneedsofitsstaffforselfimprovement,andpromotedcontinuousdevelopmentoftheCompany.
4.Laboroutsourcing?Applicable□Notapplicable
Totalworkinghoursforlabouroutsourcing
| Totalworkinghoursforlabouroutsourcing | 71,494.00 |
| Totalremunerationpaidforlabouroutsourcing(RMB) | 3,152,092.04 |
XII.ProfitDistributionPlanandPlantoConvertReservesintoShareCapitalFormulation,implementationoradjustmentofprofitdistributionpolicy,particularlycashdividendpolicy,duringthereportingperiod?Applicable□NotapplicableDRCOimplementstheprofitdistributionpolicyinstrictaccordancewiththerelevantprovisionsoftheArticlesofAssociationofDRCO.TheprofitdistributionplanduringthereportingperiodcompliedwiththeprovisionsoftheArticlesofAssociationandthereviewprocedures,fullyprotectingthelegitimaterightsandinterestsofallshareholdersofDRCO.OnMay26,2023,DRCOheldthe2022annualgeneralmeetingofshareholderstoconsiderandapprovetheResolutionontheProfitDistributionPlanfor2022.Basedonthetotalsharecapitalof400,010,000sharesasofDecember31,2022,DRCOdistributedRMB10.00incash(taxinclusive)forevery10sharestoallshareholders,amountingtoatotalcashdividendofRMB400,010,000(taxinclusive),Nobonusshareswereofferedandnocapitalreservewasconvertedintosharecapital.ThisprofitdistributionplanwascompletedonJune20,2023.
| Specialnotesoncashdividendpolicy | |
| WhethercomplieswiththeprovisionsoftheArticlesofAssociationortherequirementsoftheresolutionofthegeneralmeetingofshareholders: | Yes |
| Whetherthecriteriaandproportionofdividenddistributionareclearandunambiguous | Yes |
Whetherrelevantdecision-makingproceduresandmechanismsaresound:
| Whetherrelevantdecision-makingproceduresandmechanismsaresound: | Yes |
| Whetherindependentdirectorshaveperformedtheirdutiesandplayedtheirdueroles: | Yes |
| IfDRCOdoesnotdistributecashdividends,disclosespecificreasonsandproposemeasurestoincreaseinvestorreturns: | NotApplicable |
| Whetherminorityshareholdershavetheopportunitytofullyexpresstheiropinionsandrequirements,andwhethertheirlegitimaterightsandinterestsarefullyprotected: | Yes |
| Ifthecashdividendpolicyisadjustedorchanged,whethertheconditionsandproceduresarecompliantandtransparent: | NotApplicable |
DRCO'sprofitdistributionplanandplantoconvertreservesintosharecapitalduringthereportingperiodareincompliancewithDRCO'sArticlesofAssociationandadministrativemeasuresfordividends?Yes□No□NotapplicableDRCO'sprofitdistributionplanandplantoconvertreservesintosharecapitalduringthereportingperiodareincompliancewithDRCO'sArticlesofAssociationProfitdistributionandcapitalizationofcapitalreservefortheyear
| Numberofbonussharestobedistributedforeverytenshares(share) | 0 |
| Amounttobedistributedforeverytenshares(RMB)(taxinclusive) | 5 |
| Numberofsharestobeconvertedintosharecapitalforeverytenshares(share) | 0 |
| Sharecapitalbaseindistributionproposal(shares) | 400,010,000.00 |
| Amountofcashdividend(RMB)(includingtax) | 200,005,000.00 |
| Amountofcashdividendinotherforms(e.g.sharerepurchase)(RMB) | 0.00 |
| Totalcashdividends(includingothermethods)(RMB) | 200,005,000.00 |
| Distributiveprofit(RMB) | 1,146,144,024.77 |
Proportionoftotalcashdividends(includingothermethods)intotalprofitdistribution
| Proportionoftotalcashdividends(includingothermethods)intotalprofitdistribution | 100.00% |
| ProposedCashDividendDistribution | |
| IfDRCOisatitsgrowthstageofthedevelopmentwithsignificantcapitalexpenditureplanned,theminimumcashdividendshouldbeatleast20%oftheprofitdistribution. | |
| Detailsoftheprofitdistributionplanortheplantoconvertreservesintosharecapital | |
| AuditedbyErnst&YoungHuaMingCertifiedPublicAccountants(SpecialGeneralPartnership),thenetprofitattributabletoshareholdersofthelistedcompanyintheconsolidatedfinancialstatementsfortheyear2023amountedtoRMB68,957.568.40,ofwhichthenetprofitattributabletotheparentcompanywasRMB300,096,158.65.AccordingtotherelevantprovisionsoftheCompanyLawandtheCompany'sArticlesofAssociation,whendistributingthecurrentyear'safter-taxprofit,theCompanyshouldsetaside10%oftheprofitintothestatutorysurplusreserve.AsofDecember31,2023,thecumulativebalanceofthestatutorysurplusreservehasreached50%oftheCompany'sregisteredcapital,andnofurtherstatutorysurplusreservewillbewithdrawnin2023.AsofDecember31,2023,thecumulativeundistributedprofitsintheconsolidatedfinancialstatementsoftheCompanyamountedtoRMB1,408,207,801.55,andthecumulativeundistributedprofitsoftheparentcompanyamountedtoRMB1,146,144,024.77.Takingfullaccountofthecashflowsituationandensuringthenormaloperationandlong-termdevelopmentofthecompany,adheringtotheprincipleofcontinuousreturntoshareholdersandsharingthecompany'soperatingresultswithallshareholders,theproposedprofitdistributionplanfortheyear2023isasfollows:Basedonthetotalsharecapitalof400,010,000sharesoftheCompanyasofDecember31,2023,acashdividendofRMB5.00(includingtax)willbedistributedtoallshareholdersforevery10sharesheld,totalingacashdividendofRMB200,005,000.00(includingtax),withnobonussharesandnocapitalreservetobeconvertedintosharecapital.IfthereisachangeinthetotalsharecapitaloftheCompanybeforetheimplementationofthedistributionplan,theCompanywilladjustthedistributionratioaccordinglywhilekeepingthetotaldistributionamountunchanged. | |
DRCOrecordsprofitsandtheparentcompanyrecordsapositiveundistributedprofitduringthereportingperiodbutthereisnoresolutionforcashdividend
□Applicable?NotapplicableXIII.ImplementationofShareIncentiveScheme,EmployeeStockOwnershipSchemeorOtherIncentiveMeasuresforEmployees
□Applicable?NotapplicableTherearenoshareincentiveschemes,employeestockownershipschemesorotherincentivemeasuresforemployeesduringthereportingperiod.XIV.ConstructionandImplementationofInternalControlSystemduringReportingPeriod
1.ConstructionandimplementationofinternalcontrolsystemDuringthereportingperiod,inaccordancewiththeprovisionsoftheBasicStandardforEnterpriseInternal
Controlanditssupportingguidanceaswellastheotherlaws,regulationsandnormativedocuments,incombinationwiththeexternalenvironment,DRCO'sownoperatingconditionsandcorporategovernancerequirements,DRCOcomprehensivelysortedoutvariousbusinessmodulesandprocesses,furtherimproveditsinternalcontrolsystemandestablishedascientific,standardized,conciseandeffectiveinternalcontrolsystem.
(1)Withregardtothecorporategovernancestructure,theBoardofDirectorsofDRCOhasestablishedtheAuditCommitteewhichisresponsibleforthecommunicating,reviewingandsupervisingDRCO'sinternalandexternalaudits,andformonitoringandassessingDRCO'sinternalcontrols;DRCOhassetuptheBoardofSupervisorstomonitortheBoardofDirectorstodevelopandimplementtheinternalcontrolsystem.DRCOhassetupanauditdepartmentasaroutineoffice,whichexercisesitsfunctionsandpowersindependentlyundertheguidanceoftheAuditCommittee.TheauditdepartmentreviewsandmonitorstheestablishmentandimplementationofDRCO'sinternalcontrolsystemandtheauthenticityandintegrityofDRCO'sfinancialinformation.
(2)Asfortheinternalcontrolsystem,DRCOhasformulatedasoundinternalcontrolsystem,whichcoversthekeybusinessmodulesinDRCO'sbusinessactivities,including:capitalactivities,procurementbusiness,assetmanagement,supplychainmanagement,salesmanagement,engineeringprojects,financialreports,comprehensivebudget,contractandsealmanagement,humanresourcesmanagement,informationsystems,significantinvestments.
(3)Intermsoftheimplementationandsupervisionofinternalcontrol,DRCOstrengthensthecompliancetrainingofemployeesandenhancestheriskpreventionawarenessofbusinessdepartments.Inordertoensuretheeffectiveoperationofinternalcontrol,DRCOhasformedanend-to-endsupervisionmodeinvolvingtheRiskDepartment,LegalAffairsDepartmentandAuditDepartment.
2.Detailsofmajordeficienciesininternalcontrolidentifiedduringthereportingperiod
□Yes?NoXV.ManagementandControloverSubsidiariesDuringReportingPeriod
Companyname
| Companyname | Integrationplan | Progressofintegration | Problems | Countermeasures | Workingprogress | Follow-upresolution |
| Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable |
XVI.InternalControlSelf-AssessmentReportorInternalControlAuditReport
1.Internalcontrolself-assessmentreport
| DisclosuredateofthefulltextoftheInternalControlSelf-assessmentReport | April27,2024 |
DisclosureindexofthefulltextoftheInternalControlSelf-assessmentReport
| DisclosureindexofthefulltextoftheInternalControlSelf-assessmentReport | Pleaserefertoseethe"2023InternalControlSelf-EvaluationReport"disclosedbywww.cninfo.com.cn | |
| TotalassetsofentitiesincludedinthescopeofassessmentasapercentageoftotalassetsinDRCO'sconsolidatedfinancialstatements | 100.00% | |
| RevenueofentitiesincludedinthescopeofassessmentasapercentageofrevenueinDRCO'sconsolidatedfinancialstatements | 100.00% | |
| Criteriatoevaluatedeficiencies | ||
| Category | Financialreport | Non-financialreport |
| Qualitativecriteria | 1)Materialweakness:correctionofmaterialerrorsinpublishedfinancialreports;failureoftheauditcommitteeandtheauditdepartmenttooverseetheinternalcontrol;findingsoffraudinvolvingdirectors,supervisorsandseniormanagementofDRCO;materialmisstatementsincurrentfinancialreportsidentifiedbytheCPAbutnotbyDRCO'sinternalcontroldepartment.(2)Significantdeficiency:failuretoselectandapplyaccountingpoliciesinaccordancewithGAAP;failuretoestablishanti-fraudproceduresandcontrolmeasures;andoneormoredeficienciesofthefinancialreporting,forwhichthetruthfulnessandaccuracyofthefinancialstatementscannotbe | (1)Materialweakness:ViolationoftheState’slaws,regulationsorregulatorydocuments;lackofdecision-makingproceduresorunscientificdecision-makingprocessthatresultsinmaterialerrors;lackofsystemsorsystemicfailuresofthesystemforimportantbusinesses;failuretorectifymaterialweaknessidentifiedbytheinternalcontrolassessment.(2)SignificanterrorsresultingfromdeviationsofDRCO'sdecision-makingprocessfromtheobjectives;deficienciesinsignificantbusinesspoliciesorsystems;failuretocorrectsignificantdeficienciesidentifiedintheinternalcontrolassessment.(3)Generaldeficiency:InefficiencyofDRCO'sdecision-making |
reasonablyassured.
(3)Generaldeficiency:Othercontroldeficienciesrelatedtofinancialreportingthatdonotconstitutematerialweaknessorsignificantdeficiency.
| reasonablyassured.(3)Generaldeficiency:Othercontroldeficienciesrelatedtofinancialreportingthatdonotconstitutematerialweaknessorsignificantdeficiency. | process;deficienciesingeneralbusinesspoliciesorsystems;failuretocorrectgeneraldeficienciesidentifiedintheinternalcontrolassessment. | |
| Quantitativecriteria | 1.Lossesresultingorlikelytoresultfromdeficienciesininternalcontrolaremeasuredagainstconsolidatedrevenueiftheyhaveimpactsontheincomestatement.(1)Materialweakness:Misstatement≥2%ofconsolidatedrevenue.(2)Significantdeficiency:1%≤misstatement<2%ofconsolidatedrevenue.(3)Generaldeficiency:Misstatement<1%ofconsolidatedrevenue.2.Lossesresultingorlikelytoresultfromdeficienciesininternalcontrolsaremeasuredagainsttotalconsolidatedassetsiftheyhaveimpactsontheassetmanagement.(1)Materialweakness:Misstatement≥1%ofthetotalconsolidatedassets.(2)Significantdeficiency:0.5%≤misstatement<1%ofthetotalconsolidatedassets.(3)Generaldeficiency:misstatement<0.5%ofthetotalconsolidatedassets. | Directpropertylossesresultingfromdirectorpotentialnegativeimpactsofthedeficienciesininternalcontrolaremeasuredagainstthetotalconsolidatedassets.(1)Materialweakness:directpropertylosses≥1%ofthetotalconsolidatedassets.(2)Significantdeficiency:0.5%≤directpropertylosses<1%oftotalconsolidatedassets.(3)Generaldeficiency:directpropertylosses<0.5%oftotalconsolidatedassets. |
Numberofmaterialweaknessesinfinancialreporting(#)
| Numberofmaterialweaknessesinfinancialreporting(#) | 0 |
| Numberofmaterialweaknessesinnon-financialreporting(#) | 0 |
| Numberofsignificantdeficienciesinfinancialreporting(#) | 0 |
| Numberofsignificantdeficienciesinnon-financialreporting(#) | 0 |
2.InternalcontrolauditreportsorassurancereportsNotApplicableXVII.RectificationinSelf-InspectionRequiredBySpecialCampaigntoImproveGovernanceOfListedCompaniesNotApplicable
PartV.EnvironmentalProtectionandSocialResponsibilityI.MaterialEnvironmentalIssuesWhetherthelistedcompanyanditssubsidiariesareamongkeypollutant-dischargingentitiesannouncedbyenvironmentalprotectionauthorities
□Yes?NoAdministrativepenaltiesimposedforenvironmentalissuesduringthereportingperiod
NameofDRCOorsubsidiary
| NameofDRCOorsubsidiary | Reasonforpenalty | Violation | Penaltyresults | Impactontheproductionandoperationofthelistedcompany | Company'srectificationmeasures |
| Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable |
Refertootherenvironmentalinformationdisclosedbykeypollutant-dischargingentitiesNotapplicable.Measurestakentoreducecarbonemissionsduringthereportingperiodandtheireffect
□Applicable?NotapplicableReasonsfornotdisclosingotherenvironmentalinformationNotapplicableII.SocialResponsibilityFordetails,pleaserefertotheESGReportfor2023disclosedbyDRCOatwww.cninfo.com.cnonApril27,2024.IIIConsolidatingandExpandingAchievementsinPovertyAlleviationWhileRevitalizingRuralAreasNotapplicable
PartVI.ImportantMattersI.FulfillmentofCommitments
1.CommitmentsfulfilledduringthereportingperiodorsuspendedattheendofthereportingperiodbyDRCO'sdefactocontrollers,shareholders,relatedparties,acquirersandothercommittedparties?Applicable□Notapplicable
Reason
| Reason | Commitmentmaker | Commitmenttype | Description | Commitmenttime | Commitmentperiod | Statusoffulfillment |
| Commitmentsmadeintheacquisitionreportorequitychangereport | Notapplicable | |||||
| Commitmentsmadeduringassetrestructuring | Notapplicable | |||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd. | Commitmentstolock-up | 1.ThecompanysharesdirectlyorindirectlyheldbyDRCOpriortotheproposedofferingshallnotbetransferredorentrustedtoothers;orberepurchasedbyDRCO,foraperiodof36monthsfromthedateoflistingofDRCO'sshares.2.Iftheclosingpriceofthecompanysharesislowerthantheissuepricefortwenty | December15,2021 | December15,2021toJune15,2025 | Performing |
consecutivetradingdayswithinsixmonthsafterthelistingofDRCO;orislessthantheissuepriceattheendofthesixmonthsafterthelisting(June15,2022,extendedincaseofnon-tradingday),thelock-upperiodwhenthecompanysharesareheldbyDRCOshallbeautomaticallyextendedbysixmonths(subjecttoadjustmentinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).
3.Incaseofanybreachoftherelevantcommitments,DRCOwillpromptlyannounce
relevantfactsandreasons,andwillpubliclyapologizetotheshareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondcontrol.Anyprofitmadeasaresultofthenon-fulfillmentofthecommitmentswillbelongtoDRCO.ThecompanyshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitment.DRCOshallhavetherighttotemporarilywithholdthecashdividends(ifany)towhichthecompanyisentitleduntiladverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.Theabovecommitmentsshallnotbeterminateddue
tothefactthatthecompanystepsdownasthecontrollingshareholderofDRCO.
| tothefactthatthecompanystepsdownasthecontrollingshareholderofDRCO. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | GongqingchengWendiNo.1InvestmentManagementPartnership(LP),GongqingchengWendiNo.2InvestmentManagementPartnership(LP),GongqingchengWendiNo.3InvestmentManagementPartnership(LP) | Commitmentstolock-up | 1.ThecompanysharesdirectlyorindirectlyheldbyDRCOpriortotheproposedofferingshallnotbetransferredorentrustedtoothers;orberepurchasedbyDRCO,foraperiodof36monthsfromthedateoflistingofDRCO'sshares.2.IftheclosingpriceofthecompanysharesislowerthantheissuepricefortwentyconsecutivetradingdayswithinsixmonthsafterthelistingofDRCO;orislessthantheissuepriceattheendofthesixmonthsafterthelisting(June15,2022,extendedincaseofnon-tradingday),thelock-upperiodwhenthecompanysharesareheldbyDRCOshallbeautomaticallyextendedbysix | December15,2021 | December15,2021toJune15,2025 | Performing |
months(subjecttoadjustmentinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).
3.Incaseofanybreachoftherelevantcommitments,DRCOwillpromptlyannouncerelevantfactsandreasons,andwillpubliclyapologizetotheshareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondcontrol.Anyprofitmadeasaresultofthenon-fulfillmentofthecommitmentswillbelongtoDRCO.ThecompanyshallbeheldliableforcompensatingDRCOor
investorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitment.
| investorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitment. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | ZhangGuotaoandLuYiwen | Commitmentstolock-up | 1.ThecompanysharesdirectlyorindirectlyheldbyDRCOpriortotheproposedofferingshallnotbetransferredorentrustedtoothers;orberepurchasedbyDRCO,foraperiodof36monthsfromthedateoflistingofDRCO'sshares.2.IftheclosingpriceofthecompanysharesislowerthantheissuepricefortwentyconsecutivetradingdayswithinsixmonthsafterthelistingofDRCO;orislessthantheissuepriceattheendofthesixmonthsafterthelisting(June15,2022,extendedincaseofnon-tradingday),thelock-upperiodwhen | December15,2021 | December15,2021toJune15,2025 | Performing |
thecompanysharesareheldbymeshallbeautomaticallyextendedbysixmonths(subjecttoadjustmentinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).
3.Withinsixmonthsafterresignation,donottransferthecompanysharesdirectlyorindirectlyheldbyoneself;ifIresignwithinsixmonthsofDRCO'ssharesbeinglisted,IshallnottransferanyshareshelddirectlyorindirectlyinDRCOwithin18monthsofmyresignation;ifIresignbetweentheseventhandtwelfthmonthsofDRCO's
sharesbeinglisted,IshallnottransferanyshareshelddirectlyorindirectlyinDRCOwithin12monthsofmyresignation.
4.Incaseofanybreachoftherelevantcommitments,Iwillpromptlyannouncethefactsandreasonsforthebreachofcommitments,andwillpubliclyapologizetoDRCO'sshareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondmycontrol.Anyprofitmadeasaresultofthenon-fulfillmentoftherelevantcommitmentswillbelongtoDRCO.IshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments.DRCOshall
havetherighttotemporarilywithholdthecashdividends(ifany)towhichIamentitledandsuspendthepaymentofmyremunerationorallowancesduringmyemploymentwithDRCOuntiladverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.TheabovecommitmentshallnotterminateifIstepdownastheactualcontrollerofDRCOorifIchangemypositionorresignfromDRCO.
| havetherighttotemporarilywithholdthecashdividends(ifany)towhichIamentitledandsuspendthepaymentofmyremunerationorallowancesduringmyemploymentwithDRCOuntiladverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.TheabovecommitmentshallnotterminateifIstepdownastheactualcontrollerofDRCOorifIchangemypositionorresignfromDRCO. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd. | Commitmentstosharereduction | Incaseofreducingtheshareholdingwithintwoyearsaftertheexpiryoftheaforesaidlock-upperiod,DRCOwillexactlycomplywithrelevantregulationsoftheCSRCandtheSZSEonsharereduction,prudentlyformulateasharereductionplan;reduce | June16,2025 | June16,2025toJune15,2027 | Performing |
theshareholdingbylaw;makeanofficialannouncementthreetradingdayspriortothereduction;andfulfillinformationdisclosureobligationsinatimelyandaccuratemannerinaccordancewiththerulesoftheSZSE.Thepriceforthereductiontransactionshallnotbelowerthantheissueprice(subjecttoadjustmentsinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).Incaseofanybreachoftherelevantcommitments,DRCOwillpromptly
announcerelevantfactsandreasons,andwillpubliclyapologizetotheshareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondcontrol.Anyprofitmadeasaresultofthenon-fulfillmentofthecommitmentswillbelongtoDRCO.ThecompanyshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitment.DRCOshallhavetherighttotemporarilywithholdthecashdividends(ifany)towhichthecompanyisentitleduntiladverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.Theabovecommitmentsshallnotbe
terminatedduetothefactthatthecompanystepsdownasthecontrollingshareholder.
| terminatedduetothefactthatthecompanystepsdownasthecontrollingshareholder. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | GongqingchengWendiNo.1InvestmentManagementPartnership(LP),GongqingchengWendiNo.2InvestmentManagementPartnership(LP),GongqingchengWendiNo.3InvestmentManagementPartnership(LP) | Commitmentstosharereduction | Incaseofreducingtheshareholdingwithintwoyearsaftertheexpiryoftheaforesaidlock-upperiod,DRCOwillexactlycomplywithrelevantregulationsoftheCSRCandtheSZSEonsharereduction,prudentlyformulateasharereductionplan;reducetheshareholdingbylaw;makeanofficialannouncementthreetradingdayspriortothereduction;andfulfillinformationdisclosureobligationsinatimelyandaccuratemannerinaccordancewiththerulesoftheSZSE.Thepriceforthereductiontransactionshallnotbelowerthantheissueprice(subjecttoadjustmentsinaccordancewiththe | June16,2025 | June16,2025toJune15,2027 | Performing |
relevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).Incaseofanybreachoftheaforesaidcommitments,DRCOwillpromptlyannouncethefactsandreasonsforthebreachofcommitments,andwillpubliclyapologizetotheshareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondcontrol.Anyprofitmadeasaresultofthenon-fulfillmentoftherelevantcommitmentswillbelongtoDRCO.ThecompanyshallbeheldliableforcompensatingDRCOorinvestorsin
accordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments.
| accordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | Commitmentstoprofitdistributionpolicy | I.TreatmentofaccumulatedprofitsbeforetheofferingAccordingtotheresolutionoftheFourthExtraordinaryGeneralMeetingofShareholdersofDRCOin2020,theaccumulatedundistributedprofitsrealizedbeforetheproposedpublicofferingofshareswillbesharedbythenewandexistingshareholdersofDRCOaftertheoffering.II.DividenddistributionpolicyafterinitialpublicofferingAccordingtotheresolutionofDRCO'sFourthExtraordinaryGeneralMeetingofShareholdersin2020,DRCO’sprofitdistribution | December15,2021 | Permanentlyvalid | Performing |
policyaftertheofferingandlistingisasfollows:
1.PrinciplesofprofitdistributionDRCOimplementsacontinuousandstableprofitdistributionpolicythatattachesimportancetoprovidinginvestorswithareasonableandstablereturnontheirinvestmentandtakingintoaccountthelong-termandsustainabledevelopmentofDRCO.
2.FormofprofitdistributionDRCOmaydistributedividendsincash,stock,oracombinationofcashandstock.DRCOwillgiveprioritytopayingdividendsincash;ifDRCOisgrowingrapidly,dividendsmaybepaidinsharesoracombinationofcashandshares.
3.CashdividendpolicyInprinciple,DRCOmakesanannualcash
profitdistributioniftheconditionsforcashprofitdistributionaremet;DRCOmaymakeaninterimcashprofitdistributionifappropriate.IfDRCO'sdistributableprofitfortheyeararepositiveandtherearenosignificantinvestmentplansormaterialcashpayments,DRCO'sannualdistributionofprofitsincashshallnotbelessthan10%ofthedistributableprofitsrealizedfortheyear.Significantinvestmentplanormaterialcashpaymentmaybeoneofthefollowingcircumstances:
(1)DRCO'sproposedexternalinvestment,acquisitionofassetsorpurchaseofequipmentoverthenexttwelvemonthsmeetsorexceeds50%ofDRCO'slatestauditednetassetsandexceedsRMB50million;
(2)DRCO'sproposedexternalinvestment,acquisitionofassetsorpurchaseofequipmentoverthenexttwelvemonthsmeetsorexceeds30%ofDRCO'slatestauditedtotalassets.
| (2)DRCO'sproposedexternalinvestment,acquisitionofassetsorpurchaseofequipmentoverthenexttwelvemonthsmeetsorexceeds30%ofDRCO'slatestauditedtotalassets. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Commitmentsonhorizontalcompetition,connectedtransactions,andcapitalappropriation | I.Commitmentonavoidinghorizontalcompetition1.Asofthedateofthiscommitmentletter,exceptforthecompanyanditswholly-ownedorcontrolledsubsidiaries,thecompany/Iandotherenterprises,organizationsorentitiescontrolledbythecompany/mearenotcurrentlyengaged,directlyorindirectly,inanybusinessactivitiesthatconstitutecompetitionwiththemainbusinessofthecompanyanditswholly-ownedorcontrolledsubsidiaries;2.No | December15,2021 | Permanentlyvalid | Performing |
engagementorassociationwithothers,directlyorindirectly,isallowedinanybusinesswhichisthesameas,similartoorinanywaycompetitivewiththeissuer.
3.Allofeffortsshallbemadetoensureotheraffiliatesofthecommitmentmakersnottodealinanybusinessthatisthesameas,similartoorinanywaycompetitivewiththeissuer.
4.Noinvestmentshallbepermittedinacompany,enterpriseorotherentityororganizationwhosebusinessisthesameas,similartoorinanywaycompetitivewiththeissuer.
5.Anyknow-howorbusinesssecrets,suchassaleschannelsorcustomerinformation,shallbedisclosedtoanyothercompany,enterpriseorotherentity,
organizationorpersonwhosebusinessisthesameas,similartoorinanywaycompetitivewiththatoftheissuer.
6.If,inthefuture,thecompany/Igetanybusinessopportunityfromanythirdpartythatmaycompetewiththeissuerinthesamelineofbusiness,thecompany/Iwill,inaccordancewiththeprincipleofthepriorityoftheissuer,informtheissuerimmediatelyandassisttheissuertotheextentpossibleinobtainingsuchbusinessopportunity;
7.Ifthecompany/Ibreachtheabovecommitmentsandcausefinanciallosstotheissuer,thecompany/Ishallbejointlyandseverallyliableforalllossessufferedbytheissuerasaresult,andtheproceedsobtainedbyDRCO/Iasaresultofsuchbreachshall
accruetotheissuer.II.Commitmentonreducingandregulatingconnectedtransactions
1.Thecompany/IshalltrytoavoidorreducetheoccurrenceofconnectedtransactionswithDRCOandthesubsidiaryentities,andurgetheassociateparitiesofthecompanyandminetoavoidorreducetheconnectedtransactionswithDRCOandthesubsidiaryentities.
2.IfthetransactionsbetweenI/thecompanyorrelevantparitiesofmine/thecompanywithDRCOandthesubsidiaryentitiesarenecessaryandunavoidable,I/thecompanyundertakestooperateatarm'slengthinaccordancewithmarket-basedprinciplesandfairprices,andcomplywiththetransactionproceduresandinformation
disclosureobligationsinaccordancewiththerelevantlawsandregulations,regulatorydocuments,rulesofthestockexchangeandtheArticlesofAssociationofDRCO,andensurethatthelegitimaterightsandinterestsoftheissueranditsothershareholdersorstakeholdersarenotprejudicedbyconnectedtransactions.
3.IfI/thecompanyortheconnectedpartyofmine/thecompanybreachestheabovecommitment,I/thecompanyshallbeheldliableforalltheliabilitiesarisingtherefromandshallfullycompensateorindemnifyDRCOanditsshareholdersorstakeholdersforalllossescausedthereby.
4.Thiscommitmentlettershalltakeeffectfromthedateofthesignatureof
mine/thecompanyandshallexpireonthedatewhen12monthshaveelapsedsinceI/thecompanyceasetobeaffiliatedwithDRCO.
| mine/thecompanyandshallexpireonthedatewhen12monthshaveelapsedsinceI/thecompanyceasetobeaffiliatedwithDRCO. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | Commitmentstopost-IPOpricestabilization | If,withinthreeyearsafterthelistingofDRCO'sshares,theclosingpriceofDRCO(subjecttoadjustmentsinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCO)islowerthanDRCO'sauditednetassetvaluepershareinthemostrecentperiodfor20consecutivetradingdays(excludingthetradingdaysonwhichthetradingofDRCO'ssharesissuspendedforthewholeday,thesamebelow)not | December15,2021 | December15,2021toDecember14,2024 | Performing |
becauseofforcemajeurefactors(hereinafterreferredtoasthe"TriggeringCondition"),DRCOanditscontrollingshareholdersaswellasdirectors(otherthanindependentdirectors)andseniormanagementundertaketoimplementthefollowingpricestabilizationmeasuresinaccordancewiththelaws,regulationsandDRCO'sArticlesofAssociationwithoutaffectingthelistingconditionofDRCO:
1.WhentheTriggeringConditionismet,DRCOwillconvenetheBoardMeetingwithin10tradingdaystodiscussthesharerepurchaseproposal.Therepurchaseproposalincludes,butnotlimitedto,thenumberofsharestoberepurchased,therepurchasepricerange,thesourceoffunds
fortherepurchase,theimpactoftherepurchaseonDRCO'ssharepriceandDRCO'soperation,etc.AftertheproposalispassedbytheBoardMeeting,theshareholders'meetingwillbeconvenedinaccordancewithlawstoreviewtheproposalregardingsharebuybackandpassaresolutionthereon,whichmustbeapprovedbyaleast2/3ofthevotingrightsheldbytheshareholderspresentatthemeeting.ThespecificimplementationplanwillbeannouncedafterDRCOmakesaresolutionattheBoardmeetingandthegeneralmeetinginaccordancewithlaws.
2.Afterthegeneralmeetingofshareholdersdeliberatesandapprovesthesharerepurchase
plan,DRCOwillnotifythecreditorsinaccordancewithlaws,andsubmitrelevantmaterialstothesecuritiesregulators,thestockexchangeandothercompetentdepartmentsforapprovalorfilingprocedures.Thecorrespondingsharerepurchaseplanwillbeinitiated10tradingdaysafterthecompletionofallnecessaryapproval,filing,informationdisclosureandotherrelevantprocedures.Followingthesharerepurchase,DRCO'sequitydistributionwillcontinuetocomplywiththelistingrequirements.
3.TherepurchaseperiodshallnotexceedthreemonthsfromthedateofapprovalofthefinalsharerepurchaseplanbythegeneralmeetingortheBoardofDirectors.
4.DRCOwillrepurchasetheshareswithitsownfundsatapricenothigherthanthelatestauditednetassetvaluepershare(subjecttoadjustmentsinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOafterthebasedateoftheaudit),andthebuybackshallbemadebywayofcallauctiontrading,tenderofferorothermeansapprovedbythesecuritiesregulators.However,ifDRCO'ssharepricenolongermeetstheconditionsforinitiatingpricestabilizationmeasurespriortotheimplementationofthesharerepurchaseplan,DRCOmaydiscontinuethe
plan.
5.ThetotalamountoffundsusedbyDRCOtorepurchasesharesshallnotexceedthetotalamountoffundsraisedfromDRCO'sinitialpublicofferingofordinarysharesinRMB(Ashares),andtheamountoffundsusedtorepurchasesharesinasinglefiscalyearshallnotexceed20%oftheauditednetprofitattributabletoshareholdersoftheparentcompanyforthepreviousfiscalyear,andthenumberofsharesrepurchasedinasinglefiscalyearshallnotexceed2%ofthetotalsharecapitalofDRCO.
6.IfDRCObreachesanyoftheforegoingcommitments,itwillpromptlydisclosethefactsandreasonsforthebreachand,exceptofforcemajeureorotherreasonsbeyondDRCO's
control,willapologizetoDRCO'sshareholdersandpublicinvestorsandatthesametimeproposesupplementaryoralternativecommitmentstoprotecttheinterestsofinvestorsasfaraspossible.
| control,willapologizetoDRCO'sshareholdersandpublicinvestorsandatthesametimeproposesupplementaryoralternativecommitmentstoprotecttheinterestsofinvestorsasfaraspossible. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd. | Commitmenttopost-IPOpricestabilization | 1.WhentheTriggeringConditionforDRCOismet,thecompanywillincreaseourshareholdingsinDRCOinaccordancewithlawsandregulationsincludingtheMeasuresfortheAdministrationoftheTakeoverofListedCompaniesinanyofthefollowingcases:①TheclosingpriceoftheDRCOislowerthanitslatestnetassetvaluepershareforeachofthe10consecutivetradingdaysfromthedayafterDRCOcompletesitssharerepurchaseplan(subjecttoadjustmentsinaccordancewiththe | December15,2021 | December15,2021toDecember14,2024 | Performing |
relevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOafterthebasedateoftheaudit).②TheTriggeringConditionisagaintriggeredwithin3monthsfromthedayafterDRCOcompletestheimplementationofitssharerepurchaseplan.
③DRCOcannotimplementthesharerepurchaseplan.
2.WithintwotradingdaysaftertheTriggeringConditionissatisfied,thecompanywillnotifytheBoardofDirectorsofDRCOwhichwillthenpublishanannouncementontheincreaseofourholdings.Thecompany
willcommencetheincreaseonthedayfollowingtheannouncementandshallcompletetheincreasewithin30tradingdaysaftertherelevantlegalproceduresarefulfilled.
3.Tostabilizethestockprice,thecompanywillbuysharesofDRCOthroughauctiontradingonthesecondarymarketatapriceofnothigherthanthelatestauditednetassetvaluepershare(subjecttoadjustmentsinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOafterthebasedateoftheaudit).However,ifthesharepriceofDRCorporationLimitedno
longermeetstheconditionsforinitiatingpricestabilizationmeasureswithinthreetradingdaysafteritdisclosesoursharepurchaseplan,thecompanymaydiscontinuetheproposedsharepurchaseplan.
4.Theamountoffundsusedbythecompanyforeverysingleholdingincreaseshallnotbelessthan10%normorethan20%oftheaccumulatedcashdividendsreceivedfromDRCOinthelastthreefiscalyears;thetotalamountoffundsusedforholdingincreasesinasinglefiscalyearshallnotexceed50%oftheaccumulatedcashdividendsreceivedfromDRCOinthemostrecentthreefiscalyears;andthenumberofsharespurchasedinasinglefiscalyearshallnotexceed2%ofthetotalsharecapitalof
DRCO.Followingtheincreaseofourshareholding,theequitydistributionofDRCOwillcontinuetocomplywiththelistingrequirements.
5.Thecompanyundertakesnottoselltheadditionalshareswithinsixmonthsofcompletionoftheproposedincrease.
6.Ifthecompanybreachesanyoftheforegoingcommitments,DRCOwillpromptlydisclosethefactsandreasonsforthebreachand,exceptofforcemajeureorotherreasonsbeyondourcontrol,wewillapologizetoshareholdersandpublicinvestorsofDRCOwhohavetherighttotemporarilywithholdthecashdividends(ifany)thatthecompanyshouldenjoyuntilthecorrespondingmeasuresaretakenandimplementedas
committed.TheabovecommitmentsshallnotbeterminatedduetothefactthatthecompanysteppeddownasthecontrollingshareholderofDRCO.
| committed.TheabovecommitmentsshallnotbeterminatedduetothefactthatthecompanysteppeddownasthecontrollingshareholderofDRCO. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | ZhangGuotao,LuYiwen,WeiQingxing,HuangShuirong,HuXiaoming,ChenQishengandLinZhenghai | Commitmenttopost-IPOpricestabilization | 1.WhentheTriggeringConditionforDRCOismet,IwillincreasemyshareholdingsinDRCOinaccordancewithlawsandregulationsincludingtheMeasuresfortheAdministrationoftheTakeoverofListedCompaniesandtheRulesontheManagementofSharesHeldbytheDirectors,SupervisorsandSeniorManagementOfficersofListedCompaniesandtheChangesThereofinanyofthefollowingcases:①Theclosingpriceforeachofthe10consecutivetradingdaysfromthedayafterthecontrollingshareholder's | December15,2021 | December15,2021toDecember14,2024 | Performing |
shareholdingincreaseplanisimplementedislowerthanthelatestauditednetassetvaluepershare(ex-rightsandex-dividendtreatmentshallbemadeintheeventofequitydistribution,conversionofreservesintosharecapitalorrightsissueafterthebasedateoftheaudit).
②TheTriggeringConditionisagaintriggeredwithin3monthsfromthedayafterthecontrollingshareholdercompletesitsshareholdingincreaseplan.
③Thecontrollingshareholdercannotimplementthesharerepurchaseplan.
2.WithintwotradingdaysaftertheTriggeringConditionissatisfied,IwillnotifytheBoardofDirectorsofDRCOwhichwillthenpublishanannouncementonmy
shareholdingincrease.Iwillcommencetheincreaseonthedayfollowingtheannouncementandshallcompletetheincreasewithin30tradingdaysaftertherelevantlegalproceduresarefulfilled.
3.Tostabilizethestockprice,IwillbuysharesofDRCOthroughauctiontradingonthesecondarymarketatapriceofnothigherthanthelatestauditednetassetvaluepershare(ex-rightsandex-dividendtreatmentshallbemadeintheeventofequitydistribution,conversionofreservesintosharecapitalorrightsissueafterthebasedateoftheaudit).However,ifthesharepriceofDRCOnolongermeetstheconditionsforinitiatingpricestabilizationmeasureswithinthreetradingdaysafterDRCO
disclosesmysharepurchaseplan,Imaydiscontinuetheproposedsharepurchaseplan.Thefundsusedforasingleincreaseinshareholdingshallnotbelessthan20%ofthetotalafter-taxremunerationreceivedfromDRCOinthepreviousyear;thefundsusedtoincreaseshareholdingsinasinglefiscalyearshallnotbemorethan50%ofthetotalafter-taxremunerationreceivedfromDRCOinthepreviousyear;andthecumulativeincreaseinshareholdinginasinglefiscalyearshallnotexceed2%oftheenlargedsharecapitalofDRCO.
4.Iundertakesnottoselltheadditionalshareswithinsixmonthsofcompletionoftheproposedincrease,andguaranteethattheincreaseinmyshareholdingshallnotcausethe
shareholdingdistributionofDRCOtofailtomeetthelistingconditions.
5.IfIbreachanyoftheforegoingcommitments,DRCOwillpromptlydisclosethefactsandreasonsforthebreachand,exceptofforcemajeureorotherreasonsbeyondmycontrol,IwillapologizetoshareholdersandpublicinvestorsofDRCOwhowillceasetopaymeremunerationorallowanceswithinfivetradingdaysfromtheforegoing,andthesharesofDRCOhelddirectlyorindirectlybymeshallnotbetransferred.Meanwhile,DRCOshallhavetherighttotemporarilywithholdthecashdividends(ifany)thatIshouldenjoyuntilthecorrespondingmeasuresaretakenandimplementedascommitted.Theabove
commitmentwillnotbeterminatedduetothechangeofmypositionorresignation.
| commitmentwillnotbeterminatedduetothechangeofmypositionorresignation. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Commitmentstocompensatingtheissuerforpossiblelossesduetotheleasedproperty | Iftheissueranditssubsidiariesreceiveanoticeofcorrectionfromthecompetentadministrativeauthoritiesbecausethepropertiesleasedbythemhavenotbeenregisteredforleasefilinginaccordancewiththelaws,regulationsandnormativedocumentscurrentlyinforce,thecompany/Iwillactivelysupervisetheissueranditssubsidiariestomakerectificationinaccordancewiththerequirements.Intheeventthattheissueranditssubsidiariessufferfinanciallossesduetofailuretoregisterthelease,defectsinthetitleoftheleasedpropertyordefectsintherightsofthelessor,defectsinthepropertiesbuilt | December15,2021 | Permanentlyvalid | Performing |
ontheleasedcollectivelandoradministrativelyallocatedland,thecompany/Ishallagreetouseourownfundstofullycompensatetheissueanditssubsidiariessothattheydonotsufferanyfinanciallossesasaresult.
| ontheleasedcollectivelandoradministrativelyallocatedland,thecompany/Ishallagreetouseourownfundstofullycompensatetheissueanditssubsidiariessothattheydonotsufferanyfinanciallossesasaresult. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Commitmenttoretroactivepaymentofsocialsecuritycontributionsandhousingprovidentfund | Intheeventthattheissueroritssubsidiariesarerequiredbythecompetentauthoritiestomakeretroactivepaymentsduetofailuretomakefullpaymentofsocialsecuritycontributionsorhousingfundinaccordancewithlaws,thecompany/Ishallbefullyliablefortheretroactivepaymentsandshallensurethattheissueroritssubsidiariesshallnotsufferanyfinanciallossasaresult. | December15,2021 | Permanentlyvalid | Performing |
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | Bindingmeasuresincaseoffailuretofulfillcommitments | 1.Intheeventofabreachoftherelevantcommitments,DRCOwillpromptlydisclosethefactand | December15,2021 | Permanentlyvalid | Performing |
reasonsforthebreachand,exceptforforcemajeureorotherreasonsbeyondDRCO'scontrol,DRCOwillmakeapublicapologytoitsshareholdersandpublicinvestors;
2.Ifthefailuretofulfilltherelevantcommitmentscausedlossestoinvestors,DRCOshallcompensateinvestorsforlossesinaccordancewithlaws.
| reasonsforthebreachand,exceptforforcemajeureorotherreasonsbeyondDRCO'scontrol,DRCOwillmakeapublicapologytoitsshareholdersandpublicinvestors;2.Ifthefailuretofulfilltherelevantcommitmentscausedlossestoinvestors,DRCOshallcompensateinvestorsforlossesinaccordancewithlaws. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd. | Bindingmeasuresincaseoffailuretofulfillcommitments | 1.Intheeventofabreachoftherelevantcommitments,thecompanywillpromptlydisclosethefactandreasonsforthebreachand,exceptforforcemajeureorotherreasonsbeyondourcontrol,thecompanywillmakeapublicapologytoDRCO’sshareholdersandpublicinvestors.2.Anyprofitmadeasaresultofthenon-fulfillmentoftherelevant | December15,2021 | Permanentlyvalid | Performing |
commitmentswillbelongtothecompany.ThecompanyshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments.
3.Intheeventofabreachoftherelevantcommitments,DRCOshallbeentitledtowithholdthecashdividends(ifany)towhichthecompanyisentitleduntiltheadverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshasbeenfullyeliminated.
| commitmentswillbelongtothecompany.ThecompanyshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments.3.Intheeventofabreachoftherelevantcommitments,DRCOshallbeentitledtowithholdthecashdividends(ifany)towhichthecompanyisentitleduntiltheadverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshasbeenfullyeliminated. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | ZhangGuotao,LuYiwen,WeiQingxing,HuangShuirong,HuXiaoming,ChenQisheng,LiYang,LiangJun,ZhongMin,LinZhenghai,ZhaoRanran,YinLuwenand | Bindingmeasuresincaseoffailuretofulfillcommitments | 1.Intheeventofabreachoftherelevantcommitments,Iwillpromptlydisclosethefactandreasonsforthebreachand,exceptforforcemajeureorotherreasonsbeyondmycontrol,Iwillmakeapublicapologyto | December15,2021 | Permanentlyvalid | Performing |
WangTong
| WangTong | DRCO’sshareholdersandpublicinvestors;2.Anyprofitmadeasaresultofthenon-fulfillmentoftherelevantcommitmentswillbelongtoDRCO.TheobligatorshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments.3.Intheeventofabreachoftherelevantcommitments,DRCOshallbeentitledtowithholdthecashdividends(ifany)towhichIamentitledandsuspendthepaymentofmyremunerationorallowancesduringmyemploymentwithDRCOuntiltheadverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshasbeenfully |
eliminated.
| eliminated. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | CommitmentsrelatingtodisclosingshareholderinformationwhenapplyingforinitialpublicofferingandlistingontheChiNextMarket | 1.DRCOhasdisclosedtheinformationofshareholdersintheprospectusinatrue,completeandaccuratemanner;2.TherearenocasesofproxyshareholdingorfiduciaryshareholdinginDRCO'sdevelopmenthistory,andtherearenodisputesorpotentialdisputesoverequities,etc.3.Nostockholdersdirectlyorindirectlyholdsharesoftheissuer,whichisprohibitedbylawsandregulations.4.Nointermediaryparticipatingintotheofferingoritssupervisor,seniormanagementormanagerialpersonneldirectlyorindirectlyholdsharesoftheissuer.5.DRCOdoesnothaveanyimpropertransferofbenefitswiththeissuer's | December15,2021 | Permanentlyvalid | Performing |
equity.
6.IfDRCObreachestheabovecommitments,itwillbeliableforalllegalconsequencesarisingtherefrom.
| equity.6.IfDRCObreachestheabovecommitments,itwillbeliableforalllegalconsequencesarisingtherefrom. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | ZhangGuotaoandLuYiwen | Sharereductioncommitment | Aftertheexpiryofthelock-upcommitment,IwilldeclareannuallytoDRCOthesharesIhaveowneddirectlyorindirectlyinDRCOandanychangesthereinduringmytenureasadirector,supervisororseniormanagerofDRCO.Thesharestransferredeachyearwillnotexceed25%ofthetotalnumberofsharesIholddirectlyorindirectlyinDRCO.Incaseofreducingtheshareholdingwithintwoyearsaftertheexpiryofthelock-upperiod,IwillexactlycomplywiththerelevantregulationsoftheCSRCandtheSZSEonshareholdingreduction,prudently | June16,2025 | June16,2025toJune15,2027 | Performing |
formulateashareholdingreductionplan,reducetheshareholdingthroughlawfulmeans,andmakeanannouncementthroughDRCOthreetradingdayspriortothereduction,andfulfillinformationdisclosureobligationsinatimelyandaccuratemannerinaccordancewiththerulesoftheSZSE.Thereductionpriceshallnotbelowerthantheissueprice(subjecttoadjustmentsinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueofadditionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).Incaseofanybreachoftherelevant
commitments,Iwillpromptlyannouncethefactsandreasonsforthebreachofcommitments,andwillpubliclyapologizetoDRCO'sshareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondmycontrol.Anyprofitmadeasaresultofthenon-fulfillmentoftherelevantcommitmentswillbelongtoDRCO.IshallbeheldliableforcompensatingDRCOorinvestorsinaccordancewithlawsintheeventofanylossthatiscausedtoDRCOorinvestorsasaresultofthenon-fulfillmentoftherelevantcommitments.DRCOshallhavetherighttotemporarilywithholdthecashdividends(ifany)towhichIamentitledandsuspendthepaymentofmyremunerationorallowancesduringmyemployment
withDRCOuntiladverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.
| withDRCOuntiladverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | Sharerepurchasecommitment | If,asaresultofafalserecord,misleadingstatementormaterialomissionintheprospectusforDRCO'sproposedofferingandlisting,whichconstitutesamaterialandsubstantialeffectonthedeterminationofwhetherDRCOcomplieswiththeofferingconditionsasrequiredbylaws,within10workingdaysfromthedatesuchillegalfactsaredeterminedbytheCSRC,thestockexchangeoracompetentauthoritysuchasajudicialauthority,DRCOwillinitiatethesharerepurchaseprocedureinaccordancewithlawstorepurchaseallthenewsharesintheinitialpublicoffering. | December15,2021 | Permanentlyvalid | Performing |
TherepurchasepriceshallbenolessthantheissuepriceofDRCO'ssharesplusinterestondepositswithbanksforthesameperiodfromtheissueofthesharestothetimeofrepurchase(theabovepricewillbeadjustedaccordinglyintheeventofex-dividendorex-rightsactionssuchasdividendpayment,bonusissue,conversionofreservesintosharecapital,issuanceofadditionalsharesorrightsissueafterthelistingofDRCO).
| TherepurchasepriceshallbenolessthantheissuepriceofDRCO'ssharesplusinterestondepositswithbanksforthesameperiodfromtheissueofthesharestothetimeofrepurchase(theabovepricewillbeadjustedaccordinglyintheeventofex-dividendorex-rightsactionssuchasdividendpayment,bonusissue,conversionofreservesintosharecapital,issuanceofadditionalsharesorrightsissueafterthelistingofDRCO). | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Sharerepurchasecommitment | If,asaresultofafalserecord,misleadingstatementormaterialomissionintheprospectusforDRCO'sproposedofferingandlisting,whichconstitutesamaterialandsubstantialeffectonthedeterminationofwhetherDRCOcomplieswiththeofferingconditionsasrequiredby | December15,2021 | Permanentlyvalid | Performing |
laws,within10workingdaysfromthedatesuchillegalfactsaredeterminedbytheCSRC,thestockexchangeoracompetentauthoritysuchasajudicialauthority,thecompany/Iwillinitiatethesharebuybackprocedureinaccordancewithlawstobuybackallrestrictedshareshavingbeentransferred,andtheconsiderationforsuchbuybackwillnotbelowerthantheissuepriceofDRCOplustheinterestondepositswithbanksforthesameperiodfromthetimeofstockissuancetothetimeofbuyback(subjecttoadjustmentinaccordancewiththerelevantregulationsofCSRCandSZSEintheeventofex-rightsandex-dividendeventssuchasdividenddistribution,bonusissue,transferofshares,issueof
additionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).Atthesametime,thecompany/IwillurgeDRCOtorepurchaseallofitsnewsharesissuedduringtheIPO.
| additionalsharesorrightsissuebyDRCOduringtheabove-mentionedperiod).Atthesametime,thecompany/IwillurgeDRCOtorepurchaseallofitsnewsharesissuedduringtheIPO. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited,DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Commitmentstosharerepurchaseincaseoffraudulentofferingandlisting | 1.Thecompany/IundertakeandguaranteethatthereisnofraudintheproposedofferingandlistingofDRCO;2.IfDRCOdoesnotmeetthelistingconditions,butfraudulentlyobtainstheissuanceregistrationandhasbeenlisted,thecompany/IwilltakesharerepurchaseprocesstobuybackallnewstockspubliclyissuedbyDRCOwithin5daysafterconfirmedbycompetentauthoritieslikeCSRC. | December15,2021 | Permanentlyvalid | Performing |
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | Measuresforandcommitmentstocoverdilutedimmediatereturns | Theproposedpublicofferingmayleadtodilutionofinvestors'immediatereturns.In | December15,2021 | Permanentlyvalid | Performing |
ordertofurtherimplementtherelevantprovisionsoftheOpinionsoftheGeneralOfficeoftheStateCouncilonFurtherStrengtheningtheProtectionoftheLegitimateRightsandInterestsofSmallandMedium-sizedInvestorsintheCapitalMarket(GuoBanFa[2013]No.110),optimizetheinvestmentreturnmechanismandsafeguardthelegitimaterightsandinterestsofsmallandmedium-sizedinvestors,DRCOintendstotakefollowingmeasurestoenhanceDRCO'sprofitabilityandstrengthenDRCO'sabilitytosustainreturns:
1.StrengthenthemainbusinessandimprovingDRCO'ssustainableprofitability:
DRCOismainlyengagedinbrandoperation,customized
sales,R&Danddesignofjewelry,andcustomizeshigh-qualitydiamond-inlaidjewelrysuchasengagementandweddingrings.Toconsolidateitscorebusiness,DRCOwilltakeadvantageoftherapiddevelopmentofChina'sjewelryindustry.Throughtheproposedpublicofferingandlisting,DRCOwillenhanceitsbrandimageandinfluence,expanditsmarketingnetwork,strengthenitsinformationsystemsandimproveitscreativedesignabilityofdiamondjewelry.DRCOwillconsolidateitsindustryleadershipandsharpenitssustainableprofitabilitybyenhancingitscorecompetitivenessintermsofbrandstrength,capitalstrength,marketingnetworkcoverageandproductdesigncapability.
2.Accelerate
theinvestmentprogressofproceeds-fundedprojects,improvetheefficiencyofcapitalutilization,andstrivetoachievetheexpectedreturnsfromtheprojectssoonaspossibleTheproceeds-fundedprojectsincludemarketingnetworkconstruction,informationsystemconstruction,theR&Dandcreativedesigncenterfordiamondjewelryandworkingcapitalreplenishment,allofwhicharerelatedtoDRCO'smainbusiness.DRCOwillspeeduptheconstructionprogressoftheseprojectsandimprovethecapitalutilizationtoenhanceitsprofitabilityassoonaspossible.Meanwhile,theuseoftheproceedswillbestrictlymanagedtoensurethesmooth
progressoftheproceeds-fundedprojects.TheseprojectswillhelpDRCOfurtherenhanceitsmarketcompetitiveness,consolidateitsexistingsaleschanneladvantagesandR&Danddesigncapabilities,increaseexpandthemarketshareofitsmainbusiness,andincreasethereturnforshareholders.
3.Increasetheefficiencyofdailyoperations,reduceoperatingcosts,andimprovebusinessperformanceDRCOwillfurtherreduceitsoperatingcoststhroughreasonablemeans,andimproveinternalcontrol,operatingefficiencyandprofitability.Atthesametime,DRCOwillstrivetoimprovethehumanresourcesmanagementandthesupportingcompensation
systemtomotivateemployeesatalllevels,continuetoattracttoptalentsandstrengthentalenttraining,optimizethetalentpoolsandreducetheriskofbraindrain,hencelayingasolidfoundationforitsrapiddevelopment.
4.Refinetheprofitdistributionpolicy,andoptimizethereturnoninvestmentmechanismInordertoestablishacontinuous,stableandscientificmechanismforinvestorsregardingthereturnoninvestmentandtoensurethecontinuityandstabilityoftheprofitdistributionpolicythroughthesystematicinstitutionalarrangements,DRCOhas,inaccordancewiththerelevantrequirements,clarifiedthespecificconditions,ratioandformofprofit
distribution,improvedthedecision-makingproceduresandmechanismforprofitdistributionaswellastheprinciplesforadjustingtheprofitdistributionpolicy.DRCOwilldistributeprofitsinstrictaccordancewiththeArticlesofAssociationandotherregulations,formulateandimplementacontinuousandstablecashdividendplan,andfurtherimprovetheprofitdistributionsystem,especiallythecashdividendpolicywherenecessary,refinetheinvestorreturnmechanism,andeffectivelysafeguardthelegitimaterightsandinterestsofinvestorsandimprovethemechanismforprotectingtherightsandinterestsofminorityinvestors.
5.Furtherimprovingtheprotectionsystemfor
minorityinvestorsDRCOhasformulatedaseriesofsystemssuchastheInvestorRelationsManagementSystemandtheInformationDisclosureManagementSystemtofullyprotecttherightsofminorityinvestorstobeinformedandtoparticipateindecision-making,andsuchinstitutionalarrangementsensuretheirrightstoaccessthecorporateinformation,choosemanagementofficersandparticipateinmajordecisions.DRCOundertakestofurtherimprovetherelevantsystemsforprotectingminorityprotectorsinaccordancewiththeimplementationrulesorrequirementsissuedbyregulatoryauthoritiesincludingtheCSRCandthestockexchange
aswellasthecommonpracticesoflistedpeers.Theabove-mentionedmeasuresaredesignedtonotonlyensuretheeffectiveuseofthefundsraisedbyDRCOandbutalsopreventtheriskofdilutingtheimmediatereturnbytheproposedoffering,whichareconducivetosharpeningDRCO'scorecompetitivenessandsustainableprofitability,increasingitsfutureearningsandenhancingthereturnforshareholders.However,duetotheobjectiveexistenceofinternalandexternalrisksfacedbyDRCO,theimplementationoftheabovemeasuresdoesnotrepresentaguaranteeoffutureprofitsmadebyDRCO.
| aswellasthecommonpracticesoflistedpeers.Theabove-mentionedmeasuresaredesignedtonotonlyensuretheeffectiveuseofthefundsraisedbyDRCOandbutalsopreventtheriskofdilutingtheimmediatereturnbytheproposedoffering,whichareconducivetosharpeningDRCO'scorecompetitivenessandsustainableprofitability,increasingitsfutureearningsandenhancingthereturnforshareholders.However,duetotheobjectiveexistenceofinternalandexternalrisksfacedbyDRCO,theimplementationoftheabovemeasuresdoesnotrepresentaguaranteeoffutureprofitsmadebyDRCO. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingor | DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Commitmentstorecoveringdilutedimmediatereturns | 1.Thecompany/Ishallnotabusethepositionasacontrollingshareholder/actualcontroller, | December15,2021 | Permanentlyvalid | Performing |
refinancing
| refinancing | shallnotinterferewiththeoperationandmanagementactivitiesofDRCObeyondauthority,andshallnotencroachontheinterestsofDRCO.2.Thecompany/IwillactivelyurgeDRCOtoeffectivelyimplementtherelevantmeasurestorecovertheimmediatereturn.3.AftertheCSRCortheSZSEhasissuedseparateopinionsandimplementationrulesonmeasuresandcommitmentstocoverdilutedimmediatereturns,iftherelevantrulesofDRCOandthecommitmentsofthecompany/mearenotinlinewithsuchrules,thecompany/IundertaketopromptlymakeadditionalcommitmentsinaccordancewiththerulesoftheCSRCortheSZSEandactivelyurgeDRCOtomake |
newcommitmentstosatisfytherequirementsoftheCSRCortheSZSE;
4.Ifthecompany/IbreachtheabovecommitmentsandcauselossestoDRCOorinvestors,thecompany/IwillbeartheresponsibilitytocompensateDRCOorinvestorsinaccordancewithlaws.
| newcommitmentstosatisfytherequirementsoftheCSRCortheSZSE;4.Ifthecompany/IbreachtheabovecommitmentsandcauselossestoDRCOorinvestors,thecompany/IwillbeartheresponsibilitytocompensateDRCOorinvestorsinaccordancewithlaws. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | ZhangGuotao,LuYiwen,WeiQingxing,HuangShuirong,HuXiaoming,ChenQisheng,LiYang,LiangJun,ZhongMinandLinZhenghai | Commitmentstocoverdilutedimmediatereturns | 1.Ineithertransmitbenefitstootherentitiesorindividualswithoutcompensationoronunfairterms,norinanyotherwayharmtheinterestsofDRCO.2.Iexerciserestraintindutyconsumption.3.IshallnotuseDRCO'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtotheperformanceofmyduties.4.Iwillactivelypromotetheimprovementof | December15,2021 | Permanentlyvalid | Performing |
DRCO'sremunerationsystemtomakeitbettercomplywiththerequirementsofcoveringdilutedimmediatereturns;IwillsupporttheBoardofDirectorsorRemunerationCommitteeofDRCOinformulating,amendingandsupplementingDRCO'sremunerationsysteminlinewiththeimplementationofDRCO'smeasurestorecoverthereturns.
5.WhenpromotingDRCO'sshareincentivescheme(ifany),IwillactivelypromotethelinkbetweentheexercisetermsoftheshareincentiveandtheimplementationofDRCO'smeasurestorecoverthereturn.
6.AftertheCSRCortheSZSEhasissuedseparateopinionsandimplementationrulesonmeasuresandcommitmentsto
coverdilutedimmediatereturns,ifmycommitmentsarenotinlinewithsuchrules,IundertaketopromptlymakeadditionalcommitmentsinaccordancewiththerulesoftheCSRCortheSZSEtosatisfytherequirementsoftheCSRCortheSZSE;
7.IfIbreachtheabovecommitmentsandcauselossestoDRCOorinvestors,IwillbeartheresponsibilitytocompensateDRCOorinvestorsinaccordancewithlaws.
| coverdilutedimmediatereturns,ifmycommitmentsarenotinlinewithsuchrules,IundertaketopromptlymakeadditionalcommitmentsinaccordancewiththerulesoftheCSRCortheSZSEtosatisfytherequirementsoftheCSRCortheSZSE;7.IfIbreachtheabovecommitmentsandcauselossestoDRCOorinvestors,IwillbeartheresponsibilitytocompensateDRCOorinvestorsinaccordancewithlaws. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRCorporationLimited | Commitmentstoundertakingliabilityforcompensationinaccordancewithlaws | 1.TheprospectusforDRCO'sinitialpublicofferingandlistingontheChiNextMarketdoesnotcontainanyfalserecords,misleadingstatementsormaterialomissions,andDRCOshallbejointlyandseverallyliablefortheauthenticity,accuracyandcompletenessoftheinformation | December15,2021 | Permanentlyvalid | Performing |
thereof.
2.Ifaninvestorsufferslossinsecuritiestradingasaresultofafalsestatement,misleadingstatementormaterialomissioninDRCO'sprospectus,DRCOshallcompensatetheinvestorforthelossinaccordancewithlaws;
3.Intheeventofabreachoftherelevantcommitments,DRCOwillpromptlydisclosethefactandreasonsforthebreachand,exceptforforcemajeureorotherreasonsbeyondDRCO'scontrol,DRCOwillmakeapublicapologytoitsshareholdersandpublicinvestors.Iflossesarecausedtoinvestors,compensationwillbemadeinaccordancewithlaws.Meanwhile,DRCOwillmaketimelyrectificationinaccordancewiththe
requirementsoftheCSRCorthestockexchange.
| requirementsoftheCSRCorthestockexchange. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | DRInvestment(Zhuhai)Co.,Ltd.,ZhangGuotaoandLuYiwen | Commitmentstoundertakingliabilityforcompensationinaccordancewithlaws | 1.TheprospectusforDRCO'sinitialpublicofferingandlistingontheChiNextMarketdoesnotcontainanyfalserecords,misleadingstatementsormaterialomissions,andthecompany/Ishallbejointlyandseverallyliablefortheauthenticity,accuracyandcompletenessoftheinformationthereof.2.Ifaninvestorsufferslossinsecuritiestradingasaresultofafalsestatement,misleadingstatementormaterialomissioninDRCO'sprospectus,thecompany/Ishallcompensatetheinvestorforthelossinaccordancewithlaws;3.Incaseofanybreachoftheforesaidcommitments,DRCOwillpromptlydisclosethefactsand | December15,2021 | Permanentlyvalid | Performing |
reasonsforthebreachand,exceptofforcemajeureorotherreasonsbeyondourcontrol,thecompanywillapologizetoshareholdersandpublicinvestorsofDRCOwhoshallhavetherighttotemporarilywithholdthecashdividends(ifany)towhichthecompanyisentitleduntilsuchtimeasadverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.
| reasonsforthebreachand,exceptofforcemajeureorotherreasonsbeyondourcontrol,thecompanywillapologizetoshareholdersandpublicinvestorsofDRCOwhoshallhavetherighttotemporarilywithholdthecashdividends(ifany)towhichthecompanyisentitleduntilsuchtimeasadverseimpactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated. | ||||||
| Commitmentsmadeatthetimeoftheinitialpublicofferingorrefinancing | ZhangGuotao,LuYiwen,WeiQingxing,HuangShuirong,HuXiaoming,ChenQisheng,LiYang,LiangJun,ZhongMin,LinZhenghai,ZhaoRanran,YinLuwenandWangTong | Commitmentstoassumeliabilityforcompensationinaccordancewithlaws | 1.TheprospectusforDRCO'sinitialpublicofferingandlistingontheChiNextMarketdoesnotcontainanyfalserecords,misleadingstatementsormaterialomissions,andIshallbejointlyandseverallyliablefortheauthenticity,accuracyandcompletenessoftheinformationthereof.2.Ifaninvestorsufferslossinsecurities | December15,2021 | Permanentlyvalid | Performing |
tradingasaresultofafalsestatement,misleadingstatementormaterialomissioninDRCO'sprospectus,Ishallcompensatetheinvestorforthelossinaccordancewithlaws.
3.Incaseofanybreachoftherelevantcommitments,DRCOwillpromptlyannouncethefactsandreasonsforthebreachofcommitments,andwillpubliclyapologizetoDRCO'sothershareholdersandpublicinvestorsexceptofforcemajeureorotherreasonsbeyondmycontrol.DRCOshallhavetherighttotemporarilywithholdthecashdividends(ifany)towhichIamentitledandsuspendthepaymentofmyremunerationorallowancesduringmyemploymentwithDRCOuntilsuchtimeasadverse
impactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated.
| impactarisingfromthenon-fulfillmentoftherelevantcommitmentshavebeenfullyeliminated. | ||||
| Commitmentstoequityincentive | Notapplicable | |||
| OthercommitmentstominorityshareholdersofDRCO | Notapplicable | |||
| Othercommitments | Notapplicable | |||
| Whetherthecommitmentisfulfilledontime | Yes | |||
| Detailsofspecificreasonsandnextstepsforanyoutstandingdelayedcommitment | Notapplicable | |||
2.IfthereisaprofitforecastforDRCO'sassetsorprojectsandthereportingperiodisstillwithintheprofitforecastperiod,DRCOprovidesanexplanationoftheassetsorprojectsmeetingtheoriginalprofitforecastandthereasonsthereof
□Applicable?NotapplicableII.WhethertheControllingShareholdersandOtherAssociatesofDRCOHaveMisappropriatedDRCO’sFundsforNon-BusinessPurpose
□Applicable?NotapplicableNocontrollingshareholdersandotherassociatesofDRCOhavemisappropriatedDRCO’sfundsfornon-businesspurpose.
III.WhetherExternalGuaranteesAreProvidedinViolationofProvisions
□Applicable?NotapplicableDuringthereportingperiod,DRCOdidn’tprovideexternalguaranteesinviolationofprovisions.IV.StatementsoftheBoardofDirectorsonLatest"Non-standardAuditReport"
□Applicable?NotapplicableV.StatementsoftheBoardofDirectors,theBoardofSupervisorsandtheIndependentDirectors(ifany)onthe"Non-standardAuditReport"IssuedbytheAccountingFirmfortheReportingPeriod
□Applicable?NotapplicableVI.StatementsoftheBoardofDirectorsonAnyChangeinAccountingPoliciesandAccountingEstimatesorAnyCorrectionofSignificantAccountingErrorsduringReportingPeriod
□Applicable?NotapplicableVII.StatementsonChangesinScopeofConsolidatedFinancialStatementsComparedwithFinancialReportforthePrecedingYear?Applicable□NotapplicableDuringthereportingperiod,DRCOestablishedorcanceledsubsidiaries.Thedetailsareasfollows:
Companyname
| Companyname | Acquisitionanddisposalofsubsidiariesduringthereportingperiod | Whetherthisreportingperiodisincludedinthescopeofconsolidation |
| He’erCulture(Hainan)Co.,Ltd. | Investtoestablish | Yes |
| DRLUXURY(SINGAPORE)PTE.LTD. | Investtoestablish | Yes |
| DRLuxuryNetherlandsHoldingB.V. | Investtoestablish | Yes |
| LOVEMONT(MALAYSIA)SDN.BHD. | Investtoestablish | Yes |
| DRLUXURYUSAINC | Investtoestablish | Yes |
| ShenzhenDRJewelrySalesCo.,Ltd. | Investtoestablish | Yes |
| LoveofMyLoveWeddingPlanning(Shenzhen)Co.,Ltd. | Investtoestablish | Yes |
| LOVEMONTHONGKONGLIMITED | Investtoestablish | Yes |
HappyLovePsychologicalResearchCenter(Shenzhen)Co.,Ltd.
| HappyLovePsychologicalResearchCenter(Shenzhen)Co.,Ltd. | Investtoestablish | Yes |
| LoveofMyLoveWeddingPlanning(Sanya)Co.,Ltd. | Investtoestablish | Yes |
| ShangqiuDRJewelry | Cancellation | Yes |
| WuhanDRJewelry | Cancellatio | Yes |
| NanchangDRJewelry | Cancellatio | Yes |
| HandanDRJewelry | Cancellatio | Yes |
| GuangzhouDRJewelry | Cancellatio | Yes |
| LangfangDRJewelry | Cancellatio | Yes |
| FoshanDRJewelry | Cancellatio | Yes |
| UrumqiDRJewelry | Cancellatio | Yes |
Note:Overseascompaniesaresub-subsidiaries,andtheotheraresubsidiaries.VIII.AppointmentandDismissalofAccountingFirmsCurrentlyappointed
| Nameofdomesticaccountingfirm | Ernst&YoungHuaMingLLP(SpecialGeneralPartnership) |
| Remunerationofdomesticaccountingfirm(RMB0'000) | 228 |
| Numberofconsecutiveyearsofauditbydomesticaccountingfirm | 7years |
| Nameofcertifiedpublicaccountantsofdomesticaccountingfirm | LiJianguang,ChenHuijin |
| Numberofcontinuousyearsofauditservicesbycertifiedpublicaccountantsofdomesticaccountingfirm | 1year,2years |
Whethertochangetheaccountingfirm
□Yes?NoAppointmentofaccountingfirmforinternalcontrolaudit,financialadviserorsponsor
□Applicable?NotapplicableIX.RiskofDelistingafterDisclosureofAnnualReport
□Applicable?NotapplicableX.MattersRelatingtoBankruptcyandReorganization
□Applicable?NotapplicableNobankruptcyandreorganization-relatedmattersoccurredduringthereportingperiod.XI.MaterialLitigationsandArbitrations?Applicable□Notapplicable
Basicinformationonlitigation(arbitration)
| Basicinformationonlitigation(arbitration) | Amountinvolved(RMB0'000) | Whetherestimatedliabilitiesareformed | Progressoflitigation(arbitration) | Rulingresultsandimpacts | Enforcementofjudgment | Dateofdisclosure | Indexforinquiry |
| Therewere79casesthatdon'tmeetthecriteriafordisclosureofmateriallitigation(arbitration)andinwhichDRCOistheplaintiff/claimant,including66claimsbroughtbyDRCOforinfringementofintellectualpropertyrights. | 784.16 | No | Asoftheendofthereportingperiod,50oftheaforementionedcaseshadbeenclosedand29werepending. | Noimpact | Casesclosedattheendofthereportingperiodwereexecutedinaccordancewiththejudgments/rulingsorsettlementandmediationprograms. | Notapplicable | |
| Therearefourcases | 591.44 | No | Asoftheendofthe | Noimpact | Casesclosedat | Notapplicable |
thatdon'tmeetthecriteriafordisclosureofmateriallitigation(arbitration)andinwhichDRCOisthedefendant/respondent.
| thatdon'tmeetthecriteriafordisclosureofmateriallitigation(arbitration)andinwhichDRCOisthedefendant/respondent. | reportingperiod,3oftheaforementionedcaseshadbeenclosedand1werepending. | theendofthereportingperiodwereexecutedinaccordancewiththejudgments/rulingsorsettlementandmediationprograms. |
XII.PunishmentandRectification
□Applicable?NotapplicableTherewerenosignificantpunishmentorrectificationsduringthereportingperiod.XIII.IntegrityofDRCOandItsControllingShareholdersandActualControllers
□Applicable?NotapplicableXIV.MaterialConnectedTransactions
1.Connectedtransactionsrelatedtodailyoperation
□Applicable?NotapplicableTherewerenoconnectedtransactionsrelatedtodailyoperationduringthereportingperiod.
2.Connectedtransactionsrelatedtotheacquisitionordisposalofassetsorequityinterests
□Applicable?NotapplicableTherewerenoconnectedtransactionsrelatedtotheacquisitionordisposalofassetsorequityinterestsduringthereportingperiod.
3.Connectedtransactionsrelatingtocommonexternalinvestments
□Applicable?NotapplicableTherewerenoconnectedtransactionsrelatingtocommonexternalinvestmentsduringthereportingperiod.
4.Relatedcreditor’srightanddebttransactions
□Applicable?NotapplicableTherewerenorelatedcreditor’srightanddebttransactionsduringthereportingperiod.
5.Transactionswithfinancialcompanieswithconnectedrelationship
□Applicable?NotapplicableTherewerenodeposits,loans,creditfacilitiesorotherfinancialoperationsbetweenDRCOandconnectedpartiesorfinancialcompanieswithconnectedrelationships.
6.TransactionsbetweenfinancialcompaniescontrolledbyDRCOandconnectedparties
□Applicable?NotapplicableTherewerenodeposits,loans,creditfacilitiesorotherfinancialoperationsbetweenfinancialcompaniescontrolledbyDRCOandconnectedpartiesofDRCO.
7.Othermaterialconnectedtransactions
□Applicable?NotapplicableTherewerenoothermaterialconnectedtransactionsduringthereportingperiod.XV.ContractsofSignificanceandTheirExecution
1.Trust,contractingandleasingmatters
(1)Trust
□Applicable?NotapplicableTherewasnotrustduringthereportingperiod.
(2)Contracting
□Applicable?NotapplicableTherewasnocontractingduringthereportingperiod.
(3)Leasing?Applicable□NotapplicableDescriptionofleasingmattersDRCO’sleasedassetsaremainlyleasedforself-operatedstoreswhichhavebeenrecognizedasright-of-useassetsaccordingtothenewaccountingstandardsforlease,andtherearenoothersignificantleasedassets.Fordetails,pleasereferto11.Right-of-useAssets/VII.NotestotheConsolidatedFinancialStatement/PartXFinancialStatements.Projectswhosegains/lossesattributabletoDRCOaccountformorethan10%ofDRCO'stotalprofitforthereportingperiod
□Applicable?NotapplicableTherewerenoprojectswhosegains/lossesattributabletoDRCOaccountformorethan10%ofDRCO'stotalprofitforthereportingperiod.
2.Materialguarantees
?Applicable□Notapplicable
Unit:RMB0’000
ExternalguaranteesprovidedbyDRCOanditssubsidiaries(excludingguaranteesforsubsidiaries)
| ExternalguaranteesprovidedbyDRCOanditssubsidiaries(excludingguaranteesforsubsidiaries) | ||||||||||
| Debtor | Dateofdisclosureofannouncementonguaranteeamount | Guaranteeamount | Actualoccurrencedate | Actualamountofguarantee | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Guaranteeperiod | Whetherfulfilled | Whetheritisaguaranteeforarelatedparty |
| DRCO'sguaranteeforsubsidiaries | ||||||||||
| Debtor | Dateofdisclosureofannouncementonguaranteeamount | Guaranteeamount | Actualoccurrencedate | Actualamountofguarantee | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Guaranteeperiod | Whetherfulfilled | Whetheritisaguaranteeforarelatedparty |
| DRGroupCompanyLimited | 4,950 | 0 | Jointandseveralliability | No | No | No | No | |||
| HaoduoDiamond(Shenzhen) | April22,2022 | 20,000 | October26,2022 | 10,000 | Jointandseveralliability | No | No | 36months | Yes | No |
| BeijingDR | August29, | 700 | 0 | Jointandseveral | No | No | No | No | ||
Jewelry
| Jewelry | 2022 | liability | ||||||||
| BeijingHuazuanDRJewelry | August29,2022 | 350 | September1st,2022 | 169.96 | Jointandseveralliability | No | No | 7months | Yes | No |
| BeijingZhongzuanDRJewelry | August29,2022 | 500 | January31,2023 | 192.65 | Jointandseveralliability | No | No | 24months | No | No |
| ChengduDRJewelry | August29,2022 | 1,000 | 0 | Jointandseveralliability | No | No | No | No | ||
| ChengduDRJewelry | August29,2022 | 700 | 412.35 | Jointandseveralliability | No | No | 45months | No1 | No | |
| HangzhouDRJewelry | August29,2022 | 1,000 | February1st,2023 | 119.15 | Jointandseveralliability | No | No | 27months | No | No |
| HangzhouDRJewelry | August29,2022 | 550 | October1st,2022 | 162.74 | Jointandseveralliability | No | No | 12months | Yes | No |
| JinanDRJewelry | August29,2022 | 500 | September1st,2022 | 396.49 | Jointandseveralliability | No | No | 31months | No | No |
| KunmingDRJewelry | August29,2022 | 500 | February1st,2023 | 109.75 | Jointandseveralliability | No | No | 46months | No | No |
NingboDRJewelry
| NingboDRJewelry | August29,2022 | 600 | October29,2022 | 173.36 | Jointandseveralliability | No | No | 44months | No | No |
| NingboDRJewelry | August29,2022 | 600 | January1st,2023 | 95.97 | Jointandseveralliability | No | No | 47months | No | No |
| ShanghaiDRJewelry | August29,2022 | 600 | 0 | Jointandseveralliability | No | No | No | No | ||
| ShanghaiDRJewelry | August29,2022 | 500 | 0 | Jointandseveralliability | No | No | No | No | ||
| ShanghaiDRJewelry | August29,2022 | 450 | October1st,2022 | 237.37 | Jointandseveralliability | No | No | 41months | No | No |
| ShenzhenDRJewelry | August29,2022 | 400 | 0 | Jointandseveralliability | No | No | No | No | ||
| ShenzhenDRJewelry | August29,2022 | 400 | May1st,2023 | 242.08 | Jointandseveralliability | No | No | 34months | No | No |
| ShenyangDRJewelry | August29,2022 | 450 | September1st,2022 | 196.68 | Jointandseveralliability | No | No | 21months | No | No |
| ShenyangDR | August29, | 400 | 0 | Jointand | No | No | No | No |
Jewelry
| Jewelry | 2022 | severalliability | ||||||||
| SuzhouDRJewelry | August29,2022 | 450 | April1st,2023 | 28.99 | Jointandseveralliability | No | No | 12months | No | No |
| SuzhouZhongzuanDRJewelry | August29,2022 | 550 | 404.87 | Jointandseveralliability | No | No | 51months | No | No | |
| TianjinDRJewelry | August29,2022 | 750 | December1st,2022 | 319.64 | Jointandseveralliability | No | No | 17months | No2 | No |
| WuhanDRJewelry | August29,2022 | 250 | 0 | Jointandseveralliability | No | No | No | No | ||
| WuhanZhongzuanDRJewelry | August29,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| Xi'anDRJewelryAccessories | August29,2022 | 450 | October1st,2022 | 161.14 | Jointandseveralliability | No | No | 35months | No | No |
| Xi'anDRJewelry | August29,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| ChangshaDRJewelry | August29,2022 | 900 | September1st,2022 | 894.06 | Jointandseveral | No | No | 45months | No | No |
liability
| liability | ||||||||||
| ChangshaDRJewelry | August29,2022 | 100 | December1st,2022 | 85.25 | Jointandseveralliability | No | No | 31months | No | No |
| HenanDRJewelry | August29,2022 | 300 | 0 | Jointandseveralliability | No | No | No | No | ||
| ZhengzhouDRJewelry | August29,2022 | 350 | January1st,2023 | 141.9 | Jointandseveralliability | No | No | 45months | No | No |
| ChongqingDRJewelry | August29,2022 | 500 | September1st,2022 | 431.92 | Jointandseveralliability | No | No | 21months | No3 | No |
| ShenzhenDRJewelry | October28,2022 | 200 | 64.64 | Jointandseveralliability | No | No | 7months | Yes | No | |
| ChongqingDarryJewelry | October28,2022 | 530 | 476.66 | Jointandseveralliability | No | No | 40months | No | No | |
| YiwuDRJewelry | October28,2022 | 250 | 0 | Jointandseveralliability | No | No | No | No | ||
| ZhoukouDRJewelry | October28,2022 | 50 | January1st,2023 | 32.81 | Jointandseveralliability | No | No | 33months | No | No |
XiningDRJewelry
| XiningDRJewelry | October28,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| HezeDRJewelry | October28,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| DongguanDRJewelry | October28,2022 | 200 | January1st,2023 | 52.66 | Jointandseveralliability | No | No | 15months | No | No |
| NanchangDRJewelry | October28,2022 | 180 | 0 | Jointandseveralliability | No | No | No | No | ||
| YinchuanDRJewelry | October28,2022 | 160 | 0 | Jointandseveralliability | No | No | No | No | ||
| WeifangDRJewelry | October28,2022 | 300 | 0 | Jointandseveralliability | No | No | No | No | ||
| MianyangDRJewelry | October28,2022 | 140 | February1st,2023 | 117.83 | Jointandseveralliability | No | No | 32months | No | No |
| ShenzhenDRJewelry | October28,2022 | 140 | February1st,2023 | 90.06 | Jointandseveralliability | No | No | 14months | No | No |
| ShenyangDR | October28, | 150 | 0 | Jointand | No | No | No | No |
Jewelry
| Jewelry | 2022 | severalliability | ||||||||
| JiningDRJewelry | October28,2022 | 50 | April1st,2023 | 43.67 | Jointandseveralliability | No | No | 31months | No | No |
| LinyiDRJewelry | October28,2022 | 230 | 0 | Jointandseveralliability | No | No | No | No | ||
| FuyangDRJewelry | October28,2022 | 120 | 0 | Jointandseveralliability | No | No | No | No | ||
| ShangqiuDRJewelry | October28,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| GuangzhouDRJewelry | December31,2022 | 1,180 | 0 | Jointandseveralliability | No | No | No | No | ||
| HandanDRJewelry | December31,2022 | 120 | 0 | Jointandseveralliability | No | No | No | No | ||
| LangfangDRJewelry | December31,2022 | 150 | 0 | Jointandseveralliability | No | No | No | No | ||
| UrumqiDRJewelry | December31,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No |
BaodingDRJewelrySales
| BaodingDRJewelrySales | December31,2022 | 88 | 0 | Jointandseveralliability | No | No | No | No | ||
| GuiyangDRJewelry | December31,2022 | 162 | 0 | Jointandseveralliability | No | No | No | No | ||
| FoshanDRJewelry | December31,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| JiaxingDRJewelry | December31,2022 | 100 | 0 | Jointandseveralliability | No | No | No | No | ||
| DRGroupCompanyLimited | April28,2023 | 10,000 | 0 | Jointandseveralliability | No | No | No | No | ||
| HaoduoDiamond(Shenzhen)Co.,Ltd. | April28,2023 | 30,000 | October23,2023 | 10,000 | Jointandseveralliability | No | No | 36months | No | No |
| November1st,2023 | 8,000 | Jointandseveralliability | No | No | 36months | No | No | |||
| November2,2023 | 10,000 | Jointandseveralliability | No | No | 36months | No | No | |||
| Totalguarantee | 40,000 | Totalactual | 29,267.52 | |||||||
amountapprovedforsubsidiariesduringthereportingperiod(B1)
| amountapprovedforsubsidiariesduringthereportingperiod(B1) | guaranteeamountforsubsidiariesduringthereportingperiod(B2) | |||||||||
| Totalguaranteeamountapprovedforsubsidiariesasattheendofthereportingperiod | 63,850 | Balanceoftotalactualguaranteeamountforsubsidiariesasattheendofthereportingperiod | 33,195.39 | |||||||
| Guaranteesbysubsidiariesforsubsidiaries | ||||||||||
| Debtor | Dateofdisclosureofannouncementonguaranteeamount | Guaranteeamount | Actualoccurrencedate | Actualamountofguarantee | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Guaranteeperiod | Whetherfulfilled | Whetheraguaranteeforaconnectedparty |
| TotalguaranteeamountofDRCO(i.e.,thesumofthefirstthreeitems) | ||||||||||
| Totalamountofapprovedguaranteeduringthereportingperiod(A1+B1+C1) | 40,000 | Totalactualguaranteeamountincurredduringthereportingperiod(A2+B2+C2) | 29,267.52 | |||||||
| Totalguaranteeamountapprovedasattheendofthereportingperiod(A3+B3+C3) | 63,850 | Balanceoftotalactualguaranteeamountasattheendofthereportingperiod(A4+B4+C4) | 33,195.39 | |||||||
| Totalactualguaranteeamount(i.e., | 5.13% | |||||||||
A4+B4+C4)asapercentageofDRCO'snetassets
| A4+B4+C4)asapercentageofDRCO'snetassets | |
| Including: | |
| Balanceofguaranteesprovidedtoshareholders,actualcontrollersandtheirrelatedparties(D) | 0 |
| Balanceofdebtguaranteesprovided,directlyorindirectly,tothosewithagearingratioofmorethan70%(E) | 434.734 |
| Differencebetweentotalguaranteeamountand50%ofnetassets(F) | 0 |
| Total(D+E+F) | 434.73 |
| Detailsofthecircumstances,ifany,underwhichtheguaranteeliabilityaroseduringthereportingperiodorthereisevidenceofalikelihoodofjointandseveralliability,foroutstandingguaranteecontracts | Notapplicable |
| Detailsofexternalguaranteesagainstestablishedprocedures(ifany) | Notapplicable |
Note1:Asoftheendofthereportingperiod,RMB456,500oftheactualguaranteeamountforChengduDRJewelryCo.,Ltd.hadbeenhonored.Note2:Asattheendofthereportingperiod,RMB728,300oftheactualguaranteeamountforTianjinDRJewelryCo.,Ltd.hasbeenhonored.Note3:Asattheendofthereportingperiod,RMB1,434,400oftheactualguaranteeamountforChongqingDRJewelryCo.,Ltd.hasbeenhonored.Note4:Thebalanceofthisguaranteeisallguaranteesprovidedbythecompanytowholly-ownedsubsidiaries.Descriptionoftheuseofcompositeguarantee
3.Entrustedcashandassetsundermanagement
(1)Entrustedwealthmanagement?Applicable□Notapplicable
Overviewofentrustedwealthmanagementduringthereportingperiod
Unit:RMB0’000
Specifictype
| Specifictype | Sourceoffundsforentrustedwealthmanagement. | Entrustedwealthmanagementamount | Outstandingbalance | Amountoverdueandnotrecovered | Provisionforimpairmentofwealthmanagementamountoverdueandnotrecovered |
| Wealthmanagementproductsofbanks | Fundsraised | 289,500.00 | 172,500.00 | 0 | 0 |
| Wealthmanagementproductsofbanks | Proprietaryfunds | 310,850.23 | 293,571.33 | 0 | 0 |
| Wealthmanagementproductsofsecuritiesbrokers | Proprietaryfunds | 141,300.00 | 138,800.00 | 0 | 0 |
| Total | 741,650.23 | 604,871.33 | 0 | 0 | |
Detailsofhigh-riskentrustedwealthmanagementproductsfeaturinglargeamount,lowsafetyandilliquidity
□Applicable?NotapplicableEntrustedwealthmanagementnotexpectedtorecovertheprincipal,orothercircumstancesthatmayleadtoimpairment
□Applicable?Notapplicable
(2)Entrustedloans
□Applicable?NotapplicableTherewerenoentrustedloansduringthereportingperiod.
4.Othercontractsofsignificance
□Applicable?Notapplicable
Therewerenoothercontractsofsignificanceduringthereportingperiod.XVI.OtherImportantMatters
□Applicable?NotapplicableTherewerenoothersignificantmattersthatneedtobeexplainedduringthereportingperiod.XVII.SignificantMattersofDRCO'sSubsidiaries
□Applicable?Notapplicable
PartVII.ChangesinSharesandInformationofShareholdersI.ChangesinShares
1.Changesinshares
Unit:Shares
Beforethischange
| Beforethischange | Increaseordecreasefromthechange(+,-) | Afterthischange | |||||||
| Quantity | Percentage | Issueofnewshares | Bonusshare | Conversionofreserves | Other | Subtotal | Quantity | Percentage | |
| I.Sharessubjecttosellingrestrictions | 360,000,000 | 90.00% | 360,000,000 | 90.00% | |||||
| 1.Sharesheldbythestate | |||||||||
| 2.Sharesheldbystate-ownedlegalpersons | |||||||||
| 3.Sharesheldbyotherdomesticentities | 360,000,000 | 90.00% | 360,000,000 | 90.00% | |||||
| Including:sharesheldbydomesticlegalpersons | 360,000,000 | 90.00% | 360,000,000 | 90.00% | |||||
| Sharesheldbydomesticnaturalpersons | |||||||||
| 4.Sharesheldbyforeigninvestor | |||||||||
s
| s | |||||
| Including:Sharesheldbyoverseaslegalpersons | |||||
| Sharesheldbyoverseasnaturalpersons | |||||
| II.Sharesnotsubjecttosellingrestrictions | 40,010,000 | 10.00% | 40,010,000 | 10.00% | |
| 1.RMB-denominatedordinaryshares | 40,010,000 | 10.00% | 40,010,000 | 10.00% | |
| 2.Foreignshareslisteddomestically | |||||
| 3.Foreignshareslistedoverseas | |||||
| 4.Other | |||||
| III.Totalshares | 400,010,000 | 100.00% | 400,010,000 | 100.00% |
Reasonsforchangesinshares
□Applicable?NotapplicableApprovalofchangesinshares
□Applicable?NotapplicableTransferofchangesinshares
□Applicable?Notapplicable
ImpactofchangesinsharesonfinancialindicatorssuchasbasicanddilutedearningspershareandnetassetvaluepershareattributabletoDRCO'sholdersofordinarysharesforthemostrecentyearandthemostrecentperiod
□Applicable?NotapplicableOtherdisclosuredeemednecessarybyDRCOorrequiredbysecuritiesregulatoryauthorities
□Applicable?Notapplicable
2.Changesinrestrictedshares?Applicable□Notapplicable
Unit:shares
Nameofshareholder
| Nameofshareholder | Numberofrestrictedsharesatthebeginningoftheperiod | Increaseinthenumberofrestrictedsharesduringtheperiod | Numberofrestrictedsharesreleasedduringtheperiod | Numberofrestrictedsharesatendofperiod | Reasonforsellingrestriction | Dateofrelease |
| DRInvestment(Zhuhai)Co.,Ltd. | 342,000,000 | 0 | 0 | 342,000,000 | Pre-IPOshares | June16,2025 |
| GongqingchengWendiNo.1InvestmentManagementPartnership(LP) | 7,200,000 | 0 | 0 | 7,200,000 | Pre-IPOshares | June16,2025 |
| GongqingchengWendiNo.2InvestmentManagementPartnership(LP) | 7,200,000 | 0 | 0 | 7,200,000 | Pre-IPOshares | June16,2025 |
| GongqingchengWendiNo.3InvestmentManagementPartnership(LP) | 3,600,000 | 0 | 0 | 3,600,000 | Pre-IPOshares | June16,2025 |
| Total | 360,000,000 | 0 | 0 | 360,000,000 | -- | -- |
II.IssuanceandListingofSecurities
1.Issuanceofsecurities(excludingpreferredshares)duringthereportingperiod
□Applicable?Notapplicable
2.ChangesinthetotalnumberofsharesandshareholderstructureofDRCO,andchangesintheassetandliabilitystructureofDRCO
□Applicable?Notapplicable
3.Existinginternalemployeeshares
□Applicable?NotapplicableIII.ShareholdersandActualControllers
1.Numberofshareholdersandtheirshareholdings
Unit:shares
Totalnumberofholdersofordinarysharesasoftheendofthereportingperiod
| Totalnumberofholdersofordinarysharesasoftheendofthereportingperiod | 14,636 | Totalnumberofholdersofordinarysharesasoftheendofthepreviousmonthprecedingthedateofpublicationoftheannualreport | 13,824 | Totalnumberofholdersofpreferredshares(ifany)whosevotingrightswererestoredattheendofthereportingperiod(seeNote9) | 0 | Totalnumberofholdersofpreferredshares(ifany)whosevotingrightswererestoredattheendofthepreviousmonthprecedingthedateofpublicationoftheannualreport(seeNote9) | 0 | Totalnumberofshareholdersholdingspecialvotingshares(ifany) | 0 |
| Shareholdingsofshareholdersholding5%ormoreorofthetop10shareholders(excludingsharesborrowedviamarginfinancing) | |||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingratio | Numberofsharesheldattheendofthereportin | Increase/decreaseduringthereporting | Numberofsharesheldsubjecttoselling | Numberofsharesheldnotsubjectto | Pledged,markedorfrozen | ||
| Sharestatus | Quantity | ||||||||
gperiod
| gperiod | period | restrictions | sellingrestrictions | |||||
| DRInvestment(Zhuhai)Co.,Ltd. | Domesticnon-state-ownedlegalperson | 85.50% | 342,000,000 | 0 | 342,000,000 | 0 | Notapplicable | 0 |
| GongqingchengWendiNo.1InvestmentManagementPartnership(LP) | Domesticnon-state-ownedlegalperson | 1.80% | 7,200,000 | 0 | 7,200,000 | 0 | Notapplicable | 0 |
| GongqingchengWendiNo.2InvestmentManagementPartnership(LP) | Domesticnon-state-ownedlegalperson | 1.80% | 7,200,000 | 0 | 7,200,000 | 0 | Notapplicable | 0 |
| GongqingchengWendiNo.3InvestmentManagementPartnership(LP) | Domesticnon-state-ownedlegalperson | 0.90% | 3,600,000 | 0 | 3,600,000 | 0 | Notapplicable | 0 |
| ZhuhaiRunxinZhirongNo.1InvestmentPartnership(LP) | State-ownedlegalperson | 0.64% | 2,566,735 | 165,000 | 0 | 2,566,735 | Notapplicable | 0 |
| LiRongjun | Domesticnaturalperson | 0.16% | 637,500 | 604,600 | 0 | 637,500 | Notapplicable | 0 |
ChinaSecurities-CMB-ChinaSecuritiesDRNo.1StrategicPlacementCollectiveAssetManagementPlan
| ChinaSecurities-CMB-ChinaSecuritiesDRNo.1StrategicPlacementCollectiveAssetManagementPlan | Other | 0.15% | 594,544 | -211,908 | 0 | 594,544 | Notapplicable | 0 |
| HongKongSecuritiesClearingCompanyLtd. | Overseaslegalperson | 0.15% | 587,828 | 363,112 | 0 | 587,828 | Notapplicable | 0 |
| BankofChina－GFChinaSecuritiesPensionIndustryIndexInitiatedSecuritiesInvestmentFund | Other | 0.12% | 482,784 | 187,000 | 0 | 482,784 | Notapplicable | 0 |
| #WangHongming | Domesticnaturalperson | 0.11% | 428,255 | 253,221 | 0 | 428,255 | Notapplicable | 0 |
AnyStrategicinvestororgenerallegalpersonbecomesoneoftop10shareholderasaresultoftheplacementofnewshares(ifany)(seeNote4)
| AnyStrategicinvestororgenerallegalpersonbecomesoneoftop10shareholderasaresultoftheplacementofnewshares(ifany)(seeNote4) | ZhuhaiRunxinZhirongNo.1InvestmentPartnership(LP)hasbecomeoneofDRCO’stop10shareholdersasDRCOplaced2,566,735sharesthatwerelockedupfromDecember15,2021toDecember14,2022.TheseshareswerereleasedandtradedonthemarketfromDecember15,2022.ChinaSecurities-CMB-ChinaSecuritiesDRNo.1StrategicPlacementCollectiveAssetManagementPlanisaspecialassetmanagementplanthroughwhichDRCO’sseniormanagementandcoreemployeestookpartinthestrategicallotmentofDRCO’sinitialpublicoffering.Asaresult,thisassetmanagementplanbecameoneofDRCO’stop10shareholdersafterDRCOplaced978,952sharesthatwerelockedupfromDecember15,2021toDecember14,2022.TheseshareswerereleasedandtradedonthemarketfromDecember15,2022. | ||
| Relationshiporactinginconcertamongtheaforesaidshareholders | ZhangGuotaoandLuYiwen,theactualcontrollersofDRCO,holda100%stakeinDRInvestment(Zhuhai).DRInvestment(Zhuhai),GongqingchengWendiNo.1InvestmentManagementPartnership(LP),GongqingchengWendiNo.2InvestmentManagementPartnership(LP)andGongqingchengWendiNo.3InvestmentManagementPartnership(LP)arealltheenterprisescontrolledbyZhangGuotao,DRCO’sactualcontroller.Otherthanthat,DRCOisnotawareofanyconnectedrelationshipamongtheaforesaidshareholders,norisDRCOawareofanypartiesactinginconcert. | ||
| Whethertheabove-mentionedshareholdersexercisevotingrightsviaaproxyorasaproxy,orwaivetheirvotingrights | Notapplicable。 | ||
| Whethertop10shareholdershavespecialaccountsforsharerepurchase(ifany)(seeNote10) | Notapplicable。 | ||
| Shareholdingsofthetop10shareholdersofunrestrictedshares | |||
| Nameof | Numberofunrestrictedsharesheldattheend | Typeofshares | |
| Typeofshares | Quantity | ||
shareholder
| shareholder | ofthereportingperiod | ||
| ZhuhaiRunxinZhirongNo.1InvestmentPartnership(LP) | 2,566,735 | RMB-denominatedordinaryshares | 2,566,735 |
| LiRongjun | 637,500 | RMB-denominatedordinaryshares | 637,500 |
| ThesharesallottedtoChinaSecurities-CMB-ChinaSecuritiesDRNo.1StrategicPlacementCollectiveAssetManagementPlan | 594,544 | RMB-denominatedordinaryshares | 594,544 |
| HongKongSecuritiesClearingCompanyLtd. | 587,828 | RMB-denominatedordinaryshares | 587,828 |
| BankofChina－GFChinaSecuritiesPensionIndustryIndexInitiatedSecuritiesInvestmentFund | 482,784 | RMB-denominatedordinaryshares | 482,784 |
| #WangHongming | 428,255 | RMB-denominatedordinaryshares | 428,255 |
| LiXiuzhi | 405,400 | RMB-denominatedordinaryshares | 405,400 |
#HeGuixian
| #HeGuixian | 264,800 | RMB-denominatedordinaryshares | 264,800 |
| NiBirong | 231,199 | RMB-denominatedordinaryshares | 231,199 |
| ICBC－ChinaUniversalPrivateEnterpriseVitalityHybridSecuritiesInvestmentFund | 218,066 | RMB-denominatedordinaryshares | 218,066 |
| Relationshiporactinginconcertamongthetop10shareholdersofunrestrictedtradableshares,andbetweenthetop10shareholdersofunrestrictedtradablesharesandthetop10shareholders | DRCOisnotawareofanyconnectedrelationshipamongtheaforesaidtop10shareholdersofunrestrictedshares,orbetweenthetop10shareholdersofunrestrictedsharesandthetop10shareholders,norisDRCOawareofanypartiesactinginconcert. | ||
| Descriptionofshareholdersinvolvedinmarginfinancingandsecuritieslending(ifany)(seeNote5) | Amongthetop10shareholderswithouttradinglimitedcondition,WangHongmingholds4,700sharesthroughageneralsecuritiesaccountand423,555sharesthroughacustomercredittransactionguaranteesecuritiesaccountwithHuataiSecurities,altogether428,255shares;HeGuixianholds0sharesthroughageneralsecuritiesaccountand264,800sharesthroughacustomercredittransactionguaranteesecuritiesaccountwithCITICSecurities,altogether264,800shares. | ||
Sharelendingthroughmarginfinancingamongthetop10shareholders?Applicable□NotapplicableUnit:share
Sharelendingthroughmarginfinancingamongthetop10shareholders
| Sharelendingthroughmarginfinancingamongthetop10shareholders | ||||||||
| Shareholder(fullname) | Beginningnumberofsharesingeneralaccountandcreditaccount | Beginningnumberofshareslentthroughmarginfinancingandnotreturned | Endingnumberofsharesingeneralaccountandcreditaccount | Endingnumberofshareslentthroughmarginfinancingandnotreturned | ||||
| Totalshares | %oftotalequity | Totalshares | %oftotalequity | Totalshares | %oftotalequity | Totalshares | %oftotalequity | |
| ZhuhaiRunxinZhirongNo.1InvestmentPartnership(LimitedPartnership) | 2,401,735.00 | 0.60% | 165,000.00 | 0.04% | 2,566,735.00 | 0.64% | 0.00 | 0.00% |
Changesofthetop10shareholdersfromthepreviousperiod?Applicable□Notapplicable
Unit:share
| Changesofthetop10shareholdersfromthepreviousperiod | |||||
| Shareholder(fullname) | New/exitinthereportingperiod | Endingnumberofshareslentthroughmarginfinancingandnotreturned | Endingnumberofsharesingeneralaccountandcreditaccount,andshareslentthroughmarginfinancingandnotreturned | ||
| Totalshares | %oftotalequity | Totalshares | %oftotalequity | ||
| BankofChina－GuotaiJiangyuanAdvantageChoiceFlexibleConfigurationHybrid | Exit | 0 | 0.00% | 01 | 0.00% |
SecuritiesInvestmentFund
| SecuritiesInvestmentFund | |||||
| ChinaConstructionBank－HwabaoEcologicalChinaHybridSecuritiesInvestmentFund | Exit | 0 | 0.00% | 02 | 0.00% |
| ChinaAMC－NationalSocialSecurityFundPortfolio422 | Exit | 0 | 0.00% | 03 | 0.00% |
| AeonLife－TraditionalInsuranceProduct | Exit | 0 | 0.00% | 04 | 0.00% |
| BankofChina－GuotaiZhiyuanAdvantageHybridSecuritiesInvestmentFund | Exit | 0 | 0.00% | 05 | 0.00% |
| ChinaConstructionBank－HwabaoEventDrivenHybridSecuritiesInvestmentFund | Exit | 0 | 0.00% | 06 | 0.00% |
| Cigna&CMBLifeInsurance－Traditional | Exit | 0 | 0.00% | 07 | 0.00% |
| Bankof | Exit | 0 | 0.00% | 08 | 0.00% |
Communications－ZhonghaiAdvantageGrowthSecuritiesInvestmentFund
| Communications－ZhonghaiAdvantageGrowthSecuritiesInvestmentFund | |||||
| LiRongjun | New | 0 | 0.00% | 637,500 | 0.16% |
| HongKongSecuritiesClearingCompanyLtd. | New | 0 | 0.00% | 587,828 | 0.15% |
| BankofChina－GFChinaSecuritiesPensionIndustryIndexInitiatedSecuritiesInvestmentFund | New | 0 | 0.00% | 482,784 | 0.12% |
| WangHongming | New | 0 | 0.00% | 428,255 | 0.11% |
| LiXiuzhi | New | 0 | 0.00% | 405,400 | 0.10% |
| HeGuixian | New | 0 | 0.00% | 264,800 | 0.07% |
| NiBirong | New | 0 | 0.00% | 231,199 | 0.06% |
| ICBC－ChinaUniversalPrivateEnterpriseVitalityHybridSecuritiesInvestmentFund | New | 0 | 0.00% | 218,066 | 0.05% |
Note1:DRCOdoesnothavethedatabecausethe“BankofChina－GuotaiJiangyuanAdvantageChoiceFlexibleConfigurationHybridSecuritiesInvestmentFund”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note2:DRCOdoesnothavethedatabecausethe“ChinaConstructionBank－HwabaoEcologicalChina
HybridSecuritiesInvestmentFund”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note3:DRCOdoesnothavethedatabecausethe“ChinaAMC－NationalSocialSecurityFundPortfolio422”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note4:DRCOdoesnothavethedatabecausethe“AeonLife－TraditionalInsuranceProduct”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note5:DRCOdoesnothavethedatabecausethe“BankofChina－GuotaiZhiyuanAdvantageHybridSecuritiesInvestmentFund”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note6:DRCOdoesnothavethedatabecausethe“ChinaConstructionBank－HwabaoEventDrivenHybridSecuritiesInvestmentFund”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note7:DRCOdoesnothavethedatabecausethe“Cigna&CMBLifeInsurance－Traditional”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.Note8:DRCOdoesnothavethedatabecausethe“BankofCommunications－ZhonghaiAdvantageGrowthSecuritiesInvestmentFund”isnotonthelistofthetop200shareholdersasattheendofthereportingperiodissuedbyChinaSecuritiesDepositoryandClearingCorporation.DoesDRCOhaveweightedvotingrightarrangement
□Applicable?NotapplicableWhetherDRCO'stop10holdersofordinarysharesandtop10holdersofunrestrictedordinarysharesengagedinanyrepurchaseagreement-basedtransactionduringthereportingperiod.
□Yes?NoDRCO'stop10holdersofordinarysharesandtop10holdersofunrestrictedordinarysharesdidnotengageinanyrepurchaseagreement-basedtransactionduringthereportingperiod.
2.ControllingshareholdersofDRCONatureofcontrollingshareholder:naturalpersonTypeofcontrollingshareholder:legalperson
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Legalrepresentative/personinchargeofthe | Dateofestablishment | Organizationcode | Mainbusiness |
entity
| entity | ||||
| DRInvestment(Zhuhai)Co.,Ltd. | ZhangGuotao | November24,2015 | 914403003587652274 | Generalitems:investmentactivitieswithownfunds;businessmanagementconsulting;informationconsultingservices(excludinglicensinginformationconsultingservices);marketingplanning;corporateimageplanning;non-residentialrealestateleasing. |
| Shareholdingsofotherdomesticandforeignlistedcompaniescontrolledandparticipatedinbythecontrollingshareholdersduringthereportingperiod | Notapplicable。 | |||
Changesinthecontrollingshareholderduringthereportingperiod
□Applicable?NotapplicableherewasnochangeinthecontrollingshareholderofDRCOduringthereportingperiod.
3.DRCO'sactualcontrolleranditspartiesactinginconcertNatureofactualcontroller:domesticnaturalpersonTypeofactualcontroller:naturalperson
| Nameofactualcontroller | Relationshipwithactualcontroller | Nationality | Whetherpossesstherightofabodeinothercountriesorregions |
ZhangGuotao
| ZhangGuotao | Himself | China | No |
| LuYiwen | Herself | China | No |
| Mainoccupationandposition | ZhangGuotaoisthechairmanofDRCO,andLuYiwenisadirectorandthegeneralmanager(president)ofDRCO. | ||
| Domesticandforeignlistedcompaniesheldduringthepast10years | Notapplicable。 | ||
Changeinactualcontrollersduringthereportingperiod
□Applicable?NotapplicableTherewasnochangeintheactualcontrollerofDRCOduringthereportingperiod.OwnershipandcontrollingrelationshipbetweenDRCOandcontrollingshareholder
| 张国涛 | ZhangGuotao |
| 卢依雯 | LuYiwen |
| 深圳前海温迪管理咨询有限公司 | ShenzhenQianhaiWendiManagementConsultingCo.,Ltd. |
| 迪阿投资(珠海)有限公司 | DRInvestment(Zhuhai)Co.,Ltd. |
共青城温迪壹号投资管理合伙企业(有限合伙)
| 共青城温迪壹号投资管理合伙企业(有限合伙) | GongqingchengWendiNo.1InvestmentManagementPartnership(LP) |
| 共青城温迪贰号投资管理合伙企业(有限合伙) | GongqingchengWendiNo.2InvestmentManagementPartnership(LP) |
| 共青城温迪叄号投资管理合伙企业(有限合伙) | GongqingchengWendiNo.3InvestmentManagementPartnership(LP) |
| 迪阿股份有限公司 | DRCorporationLimited |
| 注：上图为截止2023年12月31日的控制关系图 | Note:ThecontrollingrelationshipasofDecember31,2023 |
TheactualcontrollercontrolsDRCOthroughtrustorotherassetmanagementmeans
□Applicable?Notapplicable
4.ThecumulativesharespledgedbythecontrollingshareholderorthelargestshareholderofDRCOanditspartiesactinginconcertaccountsfor80%oftheshareholdingstheyholdinDRCO
□Applicable?Notapplicable
5.Otherlegal-personshareholdersholdingmorethan10%ofDRCO’sshares
□Applicable?Notapplicable
6.Reductionofrestrictedsharesbycontrollingshareholders,actualcontrollers,restructuringpartiesandothercommitmententities
□Applicable?NotapplicableIV.ImplementationofShareRepurchaseduringReportingPeriodProgressofthesharerepurchases
□Applicable?NotapplicableProgressofthereductionofsharerepurchasedsharesbymeansofcallauctiontrading
□Applicable?Notapplicable
PartVIII.InformationaboutPreferredShares
□Applicable?NotapplicableTherearenopreferredsharesduringthereportingperiod.
PartXFinancialReportI.Auditor’sreport
Auditor’sopinion
| Auditor’sopinion | Unqualifiedopinion |
| Dateofsigning | April25,2024 |
| Auditor | Ernst&YoungHuaMingLLP |
| Reportdocumentnumber | Ernst&YoungHuaMing(2024)ShenZiNo.70031863_H01 |
| ChineseCertifiedPublicAccountant | LiJianguang,ChenHuijin |
Auditor’sReport(Body)TotheboardofdirectorsofDRCorporationLimited(I)OpinionWehaveauditedthefinancialstatementsofDRCorporationLimited(the“Company”),whichcomprisetheconsolidatedandcompanybalancesheetsasat31December2023,andtheconsolidatedandcompanyincomestatements,theconsolidatedandcompanystatementsofchangesinequityandtheconsolidatedandcompanystatementsofcashflowsfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandtheCompany’sfinancialpositionasat31December2023,andtheconsolidatedandtheCompany’sfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises(“ASBEs”).(II)BasisforopinionWeconductedourauditinaccordancewithChinaStandardsonAuditing(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport.WeareindependentoftheCompanyinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants(the“Code”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.(III)KeyauditmattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofo
urauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Foreachmatterbelow,ourdescriptionofhowourauditaddressedthematterisprovidedinthatcontext.Wehavefulfilledtheresponsibilitiesdescribedinthe“Auditor’sresponsibilitiesfortheauditofthefinancialstatements”sectionofourreport,includinginrelationtothesematters.Accordingly,ourauditincludedtheperformanceofproceduresdesignedtorespondtoourassessmentoftherisksofmaterialmisstatementofthefinancialstatements.Theresultsofourauditprocedures,includingtheproceduresperformedtoaddressthemattersbelow,providethebasisforourauditopinionontheaccompanyingfinancialstatements.
Keyauditmatters:
| Keyauditmatters: | Howourauditaddressedthematters: |
| Revenuerecognition | |
| Fortheyearended31December2023,theconsolidatedrevenueofDRCorporationLimitedanditssubsidiaries(hereinaftercollectivelyreferredtoasthe"Group")wasRMB2.18billion.TheGroup'scurrentbusinessmodelmainlyincludes:retaildirectlytotheendconsumersthroughofflinedirect-operatedstores,e-commerceplatformsandofflinejoint-operatedstores.AndtheGrouprecognizedrevenuewhentheendcustomersreceivedgoods.ThetotalamountofrevenueasaKPIismaterialtothefinancialstatementsasawholeandthereisahugevolumeofscatteredrevenuetransactions.Andthereisaninherentriskthatmanagementmaymanipulaterevenuetoachievespecificpurpose.Therefore,revenuerecognitionisidentifiedasakeyauditmatter.Forfurtherdisclosure,refertoNoteV.26RevenueandNoteVII..34Revenueandcostsofsales. | Ourproceduresinrelationtorevenuerecognitionmainlyincluded:1)Obtaininganunderstandingoftheaccountingpoliciesofrevenuerecognitionandreviewingmainsalescontracttermstoassesstheappropriatenessofrevenuerecognitionpolicies;2)Obtaininganunderstandingofandevaluatingtheinternalcontroloftransactionprocessofrevenuerecognition,andtestingtheoperationeffectivenessofrelevantcontrolwithinthereportingperiod;3)Performingtestsofdetailsandreviewingcustomers’orders,receiptrecords,expressdeliveryrecords,bankslipsandinvoices,etc.;4)Performingconfirmationproceduresforreceivables;5)ObtaininganunderstandingofthesettlementmethodbetweentheCompanyandcustomers,inspectingthecorrespondencebetweencashreceiptsandaccountsreceivableorcontractliabilities,andagreeingtothebankstatements;6)Performingrevenuecut-offprocedures,inspectingtheoutboundbillsandexpressdeliveryrecordsforonemonthbeforeorafterthebalancesheetdateandagreeingwiththevouchers,andcheckingwhethertheybelongedtothesameaccountingperiod;7)Performinganalyticalreviewproceduresforrevenue,includinganalysisofmonthlyrevenuetrendandanalysisofrevenuetrendsfordifferenttypesofproducts,etc. |
Keyauditmatters:
| Keyauditmatters: | Howourauditaddressedthematters: |
| Existenceofinventoryandvaluationofnetrealizablevalue | |
| Asat31December2023,theoutstandingbalanceoftheGroup'sinventorywasRMB537million(netofprovisionfordeclineinvalueofinventoriesofRMB10.24million).Atthebalancesheetdate,inventoriesarestatedatthelowerofcostandnetrealizablevalue.Theinventoriesarewrittendownbelowcosttonetrealizablevalueandthewrite-downisrecognizedinprofitorlossifthecostishigherthanthenetrealizablevalue.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes,whichinvolvessignificantmanagementestimation.Furthermore,theunitpriceofinventoryishighandthereisahigherinherentriskofeasytheftanddifficulttodistinguishauthenticity.Therefore,theexistenceofinventoryandvaluationofnetrealizablevalueisregardedasakeyauditmatter.FurtherdisclosurereferstoNoteV.14Inventories,NoteV.30OthersignificantaccountingpoliciesandaccountingestimatesandNoteVII.6Inventories. | Ourproceduresinrelationtoexistenceofinventoryandvaluationofnetrealizablevaluemainlyincluded:1)Obtaininganunderstandingofandevaluatinginternalcontrolrelatingtoinventoryprocurement,stocktakeandprovisionfordeclineinvalueofinventories,andtestingtheoperationeffectivenessofrelevantcontrolwithinthereportingperiod;2)Attendingtheannualphysicalinventorycount,inspectingtheCompany'sphysicalinventorycountplanandobservingwhethertheplanwasimplementedproperly;3)Performingstocktakingproceduresonasamplebasis,checkingthequantityandweightoftheinventories,inspectingthecertificatesoftheinventoriesandverifyingthecertificatenumberonthewebsiteoftheappraisalorganization;4)Comparingtheestimatedsellingpriceusedinthenetrealizablevaluewiththerecentpriceinthemarket,comparingestimatedsellingexpensesandrelatedtaxeswiththeactualsellingexpensesandtaxestoassesstheappropriateness;5)Retrospectivelycomparingprovisionforwrite-downofinventoriesinprioryearanditsmovementsincurrentyear,andobtainingthelistofdefectiveandobsoleteproductstoevaluatethesufficiencyoftheprovision. |
Keyauditmatters:
| Keyauditmatters: | Howourauditaddressedthematters: |
| Provisionforimpairmentlossesofstores’assetgroups | |
| TheassetgroupsoftheGroup’sstoresmainlyincludelong-termassetssuchaslong-termprepaidexpensesandright-of-useassets.Asat31December2023,thetotalcarryingamountoftheaboveassetswasRMB239million,includingRMB89.90millionofprovisionforimpairmentmadeforstores’assetgroupswhoserecoverableamountwaslowerthantheircarryingamount.Asstores’assetgroupsaresignificanttothesefinancialstatementsasawhole,andtheprovisionforimpairmentofstores’assetgroupsinvolvessignificantmanagementjudgmentsandestimates,weconsidertheprovisionforimpairmentofstores’assetgroupsmadebyDRCorporationLimitedasakeyauditmatter.Forfurtherdisclosure,refertoNoteV.20Impairmentoflong-termassets,NoteV.21Long-termprepaidexpenses,NoteV.29Leases,NoteV.30Othersignificantaccountingpoliciesandaccountingestimates,NoteVII.11Right-of-useassetsandNoteVII.13Long-termprepaidexpenses. | Ourproceduresinrelationtoprovisionforimpairmentofstores’assetgroupsmainlyincluded:1)Obtaininganunderstandingofandevaluatinginternalcontrolrelatingtoimpairmenttestingofstores’assetgroups;2)Discussingwithmanagementthebasisfordeterminingindicatorsofimpairmentofstores’assetgroups,andevaluatingwhethermanagement’sjudgmentonindicatorsofimpairmentofstores’assetgroupswasreasonable;3)Communicatingwithmanagementandinternalvaluationexpertstoevaluatekeyparametersofvaluation;evaluating,withtheassistanceofinternalvaluationexperts,thereasonablenessofmethods,assumptionsandestimatesusedtodiscountexpectedfuturecashflowsoftheassetgroupsbasedonASBErequirements;4)Evaluatingwhetherdisclosuresrelatedtoimpairmentofstores’assetgroupsinthesefinancialstatementsmetASBErequirements. |
(IV)OtherinformationThemanagementoftheCompanyisresponsibleforotherinformation.TheotherinformationcomprisestheinformationincludedintheAnnualReport,otherthantheconsolidatedfinancialstatementsandourauditor'sreportthereon.Ouropinionontheconsolidatedfinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedfinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthefact.Wehavenothingtoreportinthisregard.(V)ResponsibilitiesofthemanagementandthosechargedwithgovernanceforthefinancialstatementsThemanagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithASBEs,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccounting,unlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperationsorhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.(VI)Auditor’sresponsibilitiesfortheauditofthefinancialstatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanau
ditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandaregenerallyconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofr
audorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditprocedures
thatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofinternalcontrol.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountin
gand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedi
sclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Ernst&YoungHuaMingLLP
| Ernst&YoungHuaMingLLP | ChineseCertifiedPublicAccountant:LiJianguang(EngagementPartner) |
| ChineseCertifiedPublicAccountant:ChenHuijin | |
| Beijing,thePeople’sRepublicofChina | 25April2024 |
II.FinancialstatementsThenotestofinancialstatementsareexpressedinRenminbiYuan.
1.ConsolidatedbalancesheetPreparer:DRCorporationLimited
31December2023
Currency:RenminbiYuan
Account
| Account | 31December2023 | 31December2022 |
| Currentassets: | ||
| Currencyfunds | 227,854,223.17 | 521,904,818.30 |
| Financialassetsheldfortrading | 4,841,946,705.07 | 5,609,891,931.68 |
| Accountsreceivable | 83,147,399.06 | 84,478,911.52 |
| Prepayments | 34,724,152.09 | 74,226,434.15 |
| Otherreceivables | 5,614,656.53 | 8,184,551.61 |
| Inventories | 526,939,044.37 | 669,886,638.00 |
| Currentportionofnon-currentassets | 446,602,964.10 | 106,967,867.16 |
| Othercurrentassets | 131,984,050.79 | 73,454,925.61 |
| Totalcurrentassets | 6,298,813,195.18 | 7,148,996,078.03 |
| Non-currentassets: | ||
| Debtinvestments | 891,976,307.01 | 794,553,996.36 |
| Fixedassets | 12,617,322.42 | 14,068,805.09 |
| Right-of-useassets | 208,971,654.66 | 590,506,167.36 |
| Intangibleassets | 6,608,420.04 | 4,262,597.76 |
| Long-termprepaidexpenses | 50,207,871.43 | 169,750,383.92 |
| Deferredtaxassets | 15,293,850.94 | 8,191,216.36 |
| Othernon-currentassets | 45,593,685.77 | 85,419,135.39 |
| Totalnon-currentassets | 1,231,269,112.27 | 1,666,752,302.24 |
| Totalassets | 7,530,082,307.45 | 8,815,748,380.27 |
| Currentliabilities: | ||
| Short-termborrowings | 389,995,277.14 | 433,993,449.44 |
| Tradingfinancialliabilities | 62,813,557.52 | - |
| Notespayable | 47,986,785.70 | 466,527,730.97 |
| Accountspayable | 28,164,899.34 | 86,880,869.77 |
| Contractliabilities | 109,633,363.46 | 126,705,661.82 |
| Employeebenefitspayable | 52,933,070.66 | 68,736,988.33 |
| Taxespayable | 18,207,805.96 | 59,885,139.66 |
| Otherpayables | 44,381,542.05 | 102,563,944.81 |
| Currentportionofnon-currentliabilities | 195,515,150.71 | 351,516,900.54 |
| Othercurrentliabilities | 11,288,478.87 | 13,670,511.44 |
| Totalcurrentliabilities | 960,919,931.41 | 1,710,481,196.78 |
Non-currentliabilities:
| Non-currentliabilities: | ||
| Leaseliabilities | 67,781,149.67 | 276,542,164.23 |
| Provisions | 14,103,391.00 | 16,925,816.91 |
| Deferredtaxliabilities | 14,639,993.41 | 8,752,998.39 |
| Totalnon-currentliabilities | 96,524,534.08 | 302,220,979.53 |
| Totalliabilities | 1,057,444,465.49 | 2,012,702,176.31 |
| Equity: | ||
| Sharecapital | 400,010,000.00 | 400,010,000.00 |
| Capitalreserves | 4,459,965,139.16 | 4,459,777,716.81 |
| Accumulatedothercomprehensiveincome | 4,449,901.25 | 3,993,254.00 |
| Surplusreserves | 200,005,000.00 | 200,005,000.00 |
| Retainedearnings | 1,408,207,801.55 | 1,739,260,233.15 |
| Totalequityattributabletoshareholdersoftheparent | 6,472,637,841.96 | 6,803,046,203.96 |
| Totalshareholders’equity | 6,472,637,841.96 | 6,803,046,203.96 |
| Totalliabilitiesandshareholders’equity | 7,530,082,307.45 | 8,815,748,380.27 |
Legalrepresentative:ZhangGuotaoFinancialcontroller:HuangShuirongAccountingsupervisor:OuZhipeng
2.Parentcompany'sbalancesheet
Currency:RenminbiYuan
Account
| Account | 31December2023 | 31December2022 |
| Currentassets: | ||
| Currencyfunds | 195,314,775.95 | 219,622,694.30 |
| Financialassetsheldfortrading | 4,636,980,087.44 | 5,223,419,915.33 |
| Accountsreceivable | 107,234,146.13 | 84,598,028.47 |
| Prepayments | 28,159,458.09 | 66,437,718.07 |
| Otherreceivables | 224,498,084.63 | 270,167,536.46 |
| Including:Dividendsreceivable | 96,000,000.00 | 131,000,000.00 |
| Inventories | 517,950,509.71 | 668,791,848.75 |
| Currentportionofnon-currentassets | 347,035,401.68 | 105,561,584.41 |
| Othercurrentassets | 68,496,153.02 | 47,317,542.08 |
| Totalcurrentassets | 6,125,668,616.65 | 6,685,916,867.87 |
| Non-currentassets: | ||
| Debtinvestments | 787,775,721.47 | 650,014,736.30 |
| Long-termequityinvestments | 201,935,477.77 | 207,935,477.77 |
| Fixedassets | 7,674,038.14 | 10,265,370.22 |
| Right-of-useassets | 176,707,741.44 | 535,960,869.57 |
| Intangibleassets | 351,782.75 | 829,361.80 |
| Long-termprepaidexpenses | 45,849,747.57 | 163,000,773.79 |
| Deferredtaxassets | 12,146,753.43 | 5,365,472.60 |
| Othernon-currentassets | 42,891,321.87 | 81,537,896.29 |
| Totalnon-currentassets | 1,275,332,584.44 | 1,654,909,958.34 |
| Totalassets | 7,401,001,201.09 | 8,340,826,826.21 |
| Currentliabilities: | ||
| Short-termborrowings | 60,000,000.00 | - |
| Tradingfinancialliabilities | 62,813,557.52 | - |
| Notespayable | 359,262,543.58 | 857,478,959.01 |
| Accountspayable | 106,655,119.15 | 273,460,934.14 |
| Contractliabilities | 100,572,333.72 | 122,481,130.76 |
| Employeebenefitspayable | 36,167,620.75 | 54,833,838.35 |
| Taxespayable | 14,344,956.11 | 18,231,870.82 |
| Otherpayables | 192,424,646.39 | 102,895,296.16 |
| Currentportionofnon-currentliabilities | 173,309,407.81 | 311,609,516.04 |
| Othercurrentliabilities | 10,288,264.17 | 13,211,410.16 |
| Totalcurrentliabilities | 1,115,838,449.20 | 1,754,202,955.44 |
Non-currentliabilities:
| Non-currentliabilities: | ||
| Leaseliabilities | 52,972,065.86 | 255,560,231.06 |
| Provisions | 13,919,541.00 | 16,816,666.91 |
| Deferredtaxliabilities | 12,146,753.43 | 8,396,162.20 |
| Totalnon-currentliabilities | 79,038,360.29 | 280,773,060.17 |
| Totalliabilities | 1,194,876,809.49 | 2,034,976,015.61 |
| Equity: | ||
| Sharecapital | 400,010,000.00 | 400,010,000.00 |
| Capitalreserves | 4,459,965,366.83 | 4,459,777,944.48 |
| Surplusreserves | 200,005,000.00 | 200,005,000.00 |
| Retainedearnings | 1,146,144,024.77 | 1,246,057,866.12 |
| Totalshareholders’equity | 6,206,124,391.60 | 6,305,850,810.60 |
| Totalliabilitiesandshareholders’equity | 7,401,001,201.09 | 8,340,826,826.21 |
3.Consolidatedincomestatement
Currency:RenminbiYuan
Account
| Account | 2023 | 2022 |
| I.TotalRevenue | 2,180,277,744.00 | 3,681,574,412.68 |
| Including:Revenue | 2,180,277,744.00 | 3,681,574,412.68 |
| II.TotalCosts | 2,228,826,160.48 | 2,939,356,663.12 |
| Including:Costofsales | 679,553,257.88 | 1,112,272,466.29 |
| Taxesandsurcharges | 121,030,304.52 | 201,359,894.62 |
| Sellingexpenses | 1,228,761,165.59 | 1,422,037,537.50 |
| Administrativeexpenses | 151,996,111.88 | 164,205,877.87 |
| Researchanddevelopmentexpenses | 21,715,215.75 | 17,944,132.37 |
| Financeexpenses | 25,770,104.86 | 21,536,754.47 |
| Including:Interestexpenses | 22,148,238.97 | 23,830,354.96 |
| Interestincome | 8,288,198.44 | 21,912,750.27 |
| Add:Otherincome | 26,746,998.56 | 39,777,673.00 |
| Investmentincome(lossisexpressedwithnegativevalue) | 201,459,628.10 | 89,003,045.62 |
| Fairvaluegains(lossisexpressedwithnegativevalue) | 31,151,566.30 | 39,294,362.36 |
| Creditimpairmentlosses(lossisexpressedwithnegativevalue) | (7,519,950.73) | 1,793,479.08 |
| Impairmentlossesofassets(lossisexpressedwithnegativevalue) | (105,342,656.15) | (28,420,774.69) |
| Gainsondisposalofassets(lossisexpressedwithnegativevalue) | 19,708,867.36 | 1,244,949.25 |
| III.Operatingprofit(lossisexpressedwithnegativevalue) | 117,656,036.96 | 884,910,484.18 |
| Add:Non-operatingincome | 2,881,923.18 | 1,237,090.46 |
| Less:Non-operatingexpenses | 7,709,541.48 | 768,433.58 |
| IV.Profitbeforetax(totallossisexpressedwithnegativevalue) | 112,828,418.66 | 885,379,141.06 |
| Less:Incometaxexpenses | 43,870,850.26 | 156,137,194.39 |
| V.Profit(netlossisexpressedwithnegativevalue) | 68,957,568.40 | 729,241,946.67 |
1.Classifiedbycontinuityofoperation
| 1.Classifiedbycontinuityofoperation | ||
| (1)Profitfromcontinuingoperations(netlossisexpressedwithnegativevalue) | 68,957,568.40 | 729,241,946.67 |
| (2)Profitfromdiscontinuedoperations(netlossisexpressedwithnegativevalue) | - | - |
| 2.Classifiedbyownership | ||
| (1)Profitattributabletoshareholdersoftheparentcompany | 68,957,568.40 | 729,241,946.67 |
| (2)Lossattributabletonon-controllinginterests | - | - |
| VI.Othercomprehensiveincome/(loss),netoftax | 456,647.25 | 6,687,238.92 |
| Othercomprehensiveincome/(loss),netoftaxattributabletoownersoftheparent | 456,647.25 | 6,687,238.92 |
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | 456,647.25 | 6,687,238.92 |
| Exchangedifferencesontranslationofforeigncurrencyfinancialstatements | 456,647.25 | 6,687,238.92 |
| VII.Totalcomprehensiveincome | 69,414,215.65 | 735,929,185.59 |
| Totalcomprehensiveincomeattributabletoownersoftheparentcompany | 69,414,215.65 | 735,929,185.59 |
| Totalcomprehensiveincomeattributabletonon-controllinginterests | - | - |
| VIII.Earningspershare | ||
| 1.Basicearningspershare | 0.17 | 1.82 |
| 2.Dilutedearningspershare | 0.17 | 1.82 |
Legalrepresentative:ZhangGuotaoFinancialcontroller:HuangShuirongAccountingsupervisor:OuZhipeng.
4.Parentcompany'sincomestatement
Currency:RenminbiYuan
Account
| Account | 2023 | 2022 |
| I.Revenue | 2,010,592,757.73 | 3,534,932,354.30 |
| Less:Costofsales | 665,347,541.25 | 1,092,567,667.81 |
| Taxesandsurcharges | 108,051,410.12 | 194,895,366.29 |
| Sellingexpenses | 1,131,004,661.01 | 1,515,688,864.56 |
| Administrativeexpenses | 390,460,699.86 | 624,911,561.61 |
| Researchanddevelopmentexpenses | 0.00 | 71,920.44 |
| Financeexpenses | 17,217,940.04 | 17,360,792.79 |
| Including:Interestexpenses | 14,229,104.56 | 19,305,582.75 |
| Interestincome | 6,827,374.58 | 19,773,708.70 |
| Add:Otherincome | 9,632,263.68 | 22,208,183.65 |
| Investmentincome(lossisexpressedwithnegativevalue) | 653,594,748.45 | 560,828,577.30 |
| Fairvaluegains(lossisexpressedwithnegativevalue) | 29,656,965.02 | 40,995,261.08 |
| Creditimpairmentlosses(lossisexpressedwithnegativevalue) | (7,385,315.73) | 1,836,341.83 |
| Impairmentlossesofassets(lossisexpressedwithnegativevalue) | (100,643,050.35) | (28,017,790.85) |
| Gainsondisposalofassets(lossisexpressedwithnegativevalue) | 18,585,721.49 | 1,276,888.55 |
| II.Operatingprofit(lossisexpressedwithnegativevalue) | 301,951,838.01 | 688,563,642.36 |
| Add:Non-operatingincome | 1,837,867.01 | 1,150,898.78 |
| Less:Non-operatingexpenses | 6,706,248.93 | 627,988.18 |
| III.Profitbeforetax(totallossisexpressedwithnegativevalue) | 297,083,456.09 | 689,086,552.96 |
| Less:Incometaxexpenses | (3,012,702.56) | 54,932,406.16 |
| IV.Profit(netlossisexpressedwithnegativevalue) | 300,096,158.65 | 634,154,146.80 |
| Profitfromcontinuingoperations(netlossisexpressedwithnegativevalue) | 300,096,158.65 | 634,154,146.80 |
| VI.Totalcomprehensiveincome | 300,096,158.65 | 634,154,146.80 |
5.Consolidatedstatementofcashflows
Currency:RenminbiYuan
Account
| Account | 2023 | 2022 |
| I.CASHFLOWSFROMOPERATINGACTIVITIES: | ||
| Cashreceiptsfromthesaleofgoodsandtherenderingofservices | 2,278,366,294.04 | 3,968,278,134.60 |
| Receiptsoftaxesandsurchargesrefunds | 31,218,358.13 | 16,421,754.59 |
| Othercashreceiptsrelatingtooperatingactivities | 54,391,172.84 | 62,655,254.90 |
| Totalcashinflowsfromoperatingactivities | 2,363,975,825.01 | 4,047,355,144.09 |
| Cashpaymentsforgoodsandservices | 1,006,024,236.82 | 1,406,475,658.87 |
| Cashpaymentstoandonbehalfofemployees | 558,894,605.16 | 573,104,253.10 |
| Paymentsofalltypesoftaxesandsurcharges | 350,767,441.44 | 621,952,499.15 |
| Othercashpaymentsrelatingtooperatingactivities | 411,324,033.78 | 627,811,620.73 |
| Totalcashoutflowsfromoperatingactivities | 2,327,010,317.20 | 3,229,344,031.85 |
| Netcashflowsfromoperatingactivities | 36,965,507.81 | 818,011,112.24 |
| II.CASHFLOWSFROMINVESTINGACTIVITIES: | ||
| Cashreceiptsfromreturnsofinvestments | 8,403,748,941.31 | 5,328,462,790.68 |
| Cashreceiptsfromreturnsoninvestments | 171,066,968.49 | 83,386,608.45 |
| Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 120,350.52 | 282,732.40 |
| Totalcashinflowsfrominvestingactivities | 8,574,936,260.32 | 5,412,132,131.53 |
| Cashpaymentstoacquirefixedassets,intangibleassetsandotherlong-termassets | 77,196,087.26 | 155,426,398.41 |
| Cashpaymentsforinvestments | 8,043,851,820.32 | 9,569,751,822.21 |
| Totalcashoutflowsfrominvestingactivities | 8,121,047,907.58 | 9,725,178,220.62 |
| Netcashflowsfrominvestingactivities | 453,888,352.74 | (4,313,046,089.09) |
| III.CASHFLOWSFROMFINANCINGACTIVITIES: | ||
| Cashproceedsfrominvestmentsbyothers | 0.00 | 0.00 |
| Cashreceiptsfromborrowings | 517,721,409.20 | 525,418,991.66 |
| Othercashreceiptsrelatingtofinancingactivities | 15,612,044.41 | 10,700,723.00 |
Totalcashinflowsfromfinancingactivities
| Totalcashinflowsfromfinancingactivities | 533,333,453.61 | 536,119,714.66 |
| Cashrepaymentsfordebts | 559,721,849.22 | 94,320,809.11 |
| Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses | 408,807,640.15 | 800,397,477.89 |
| Including:Paymentsfordistributionofdividendsorprofitstonon-controllingshareholdersofsubsidiaries | ||
| Othercashpaymentsrelatingtofinancingactivities | 350,995,774.08 | 371,403,624.18 |
| Totalcashoutflowsfromfinancingactivities | 1,319,525,263.45 | 1,266,121,911.18 |
| Netcashflowsfromfinancingactivities | (786,191,809.84) | (730,002,196.52) |
| IV.EFFECTOFEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | 676,529.63 | 5,151,750.54 |
| V.NETINCREASEINCASHANDCASHEQUIVALENTS | (294,661,419.66) | (4,219,885,422.83) |
| Add:Cashandcashequivalentsatbeginningofperiod | 521,625,030.62 | 4,741,510,453.45 |
| VI.CASHANDCASHEQUIVALENTSATENDOFPERIOD | 226,963,610.96 | 521,625,030.62 |
6.Parentcompany'sstatementofcashflows
Currency:RenminbiYuan
Account
| Account | 2023 | 2022 |
| I.CASHFLOWSFROMOPERATINGACTIVITIES: | ||
| Cashreceiptsfromthesaleofgoodsandtherenderingofservices | 2,347,244,990.19 | 3,991,469,167.77 |
| Receiptsoftaxesandsurchargesrefunds | 22,840,647.61 | 56,556.06 |
| Othercashreceiptsrelatingtooperatingactivities | 399,867,497.80 | 265,606,344.91 |
| Totalcashinflowsfromoperatingactivities | 2,769,953,135.60 | 4,257,132,068.74 |
| Cashpaymentsforgoodsandservices | 1,011,624,072.25 | 1,495,604,940.61 |
| Cashpaymentstoandonbehalfofemployees | 459,678,315.90 | 484,718,641.12 |
| Paymentsofalltypesoftaxesandsurcharges | 222,211,813.20 | 474,368,886.96 |
| Othercashpaymentsrelatingtooperatingactivities | 1,323,785,442.55 | 1,405,354,651.27 |
| Totalcashoutflowsfromoperatingactivities | 3,017,299,643.90 | 3,860,047,119.96 |
| Netcashflowsfromoperatingactivities | (247,346,508.30) | 397,084,948.78 |
| II.CASHFLOWSFROMINVESTINGACTIVITIES: | ||
| Cashreceiptsfromreturnsofinvestments | 7,877,941,603.71 | 4,888,931,144.07 |
| Cashreceiptsfromreturnsoninvestments | 665,199,284.52 | 622,149,442.68 |
| Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 120,350.52 | 282,732.40 |
| Netcashreceiptsfromdisposalofsubsidiariesandotherbusinessunits | 14,008,195.97 | 0.00 |
| Othercashreceiptsrelatingtoinvestingactivities | 0.00 | 0.00 |
| Totalcashinflowsfrominvestingactivities | 8,557,269,434.72 | 5,511,363,319.15 |
| Cashpaymentstoacquirefixedassets,intangibleassetsandotherlong-termassets | 72,009,896.77 | 150,904,158.20 |
| Cashpaymentsforinvestments | 7,631,186,071.23 | 9,041,789,749.98 |
| Netcashpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 0.00 | 0.00 |
| Othercashpaymentsrelatingtoinvestingactivities | 0.00 | 0.00 |
| Totalcashoutflowsfrominvestingactivities | 7,703,195,968.00 | 9,192,693,908.18 |
| Netcashflowsfrominvestingacti | 854,073,466.72 | (3,681,330,589.03) |
vities
| vities | ||
| III.CASHFLOWSFROMFINANCINGACTIVITIES: | ||
| Cashproceedsfrominvestmentsbyothers | 0.00 | 0.00 |
| Cashreceiptsfromborrowings | 60,000,000.00 | 0.00 |
| Othercashreceiptsrelatingtofinancingactivities | 15,195,224.09 | 10,700,723.00 |
| Totalcashinflowsfromfinancingactivities | 75,195,224.09 | 10,700,723.00 |
| Cashrepaymentsfordebts | 0.00 | 0.00 |
| Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses | 400,122,500.00 | 800,020,000.00 |
| Othercashpaymentsrelatingtofinancingactivities | 306,542,100.91 | 350,987,128.44 |
| Totalcashoutflowsfromfinancingactivities | 706,664,600.91 | 1,151,007,128.44 |
| Netcashflowsfromfinancingactivities | (631,469,376.82) | (1,140,306,405.44) |
| IV.EFFECTOFEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | 0.00 | 0.00 |
| V.NETINCREASEINCASHANDCASHEQUIVALENTS | (24,742,418.40) | (4,424,552,045.69) |
| Add:Cashandcashequivalentsatbeginningofperiod | 219,342,906.62 | 4,643,894,952.31 |
| VI.CASHANDCASHEQUIVALENTSATENDOFPERIOD | 194,600,488.22 | 219,342,906.62 |
7.ConsolidatedstatementofchangesinequityForthecurrentperiod
Currency:RenminbiYuan
AttributabletoshareholdersoftheCompany
| AttributabletoshareholdersoftheCompany | Minorityinterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserves | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Subtotal | |||
| I.Balanceattheendoftheprioryearandthebeginningofyear | 400,010,000.00 | 4,459,777,716.81 | 3,993,254.00 | 200,005,000.00 | 1,739,260,233.15 | 6,803,046,203.96 | - | 6,803,046,203.96 |
| II.Changesfortheyear | ||||||||
| 1.Totalcomprehensiveincome | - | - | 456,647.25 | - | 68,957,568.40 | 69,414,215.65 | - | 69,414,215.65 |
| 2.Owners’contributionsandreductionincapital | ||||||||
| Amountofshare-basedpaymentsrecognizedinequity | - | 187,422.35 | - | - | - | 187,422.35 | - | 187,422.35 |
| 3.Profitdistribution | ||||||||
| Appropriationtosurplusreserve | - | - | - | - | - | - | - | - |
| Distributiontoshareholders | - | - | - | - | (400,010,000.00) | (400,010,000.00) | (400,010,000.00) | |
| III.Balanceatendofyear | 400,010,000.00 | 4,459,965,139.16 | 4,449,901.25 | 200,005,000.00 | 1,408,207,801.55 | 6,472,637,841.96 | 6,472,637,841.96 | |
Forthepriorperiod
Currency:RenminbiYuan
AttributabletoshareholdersoftheCompany
| AttributabletoshareholdersoftheCompany | Minorityinterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserves | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Subtotal | |||
| I.Balanceattheendoftheprioryearandthebeginningofyear | 400,010,000.00 | 4,459,216,399.61 | (2,693,984.92) | 179,210,032.06 | 1,830,833,254.42 | 6,866,575,701.17 | 6,866,575,701.17 | |
| II.Changesfortheyear | ||||||||
| 1.Totalcomprehensiveincome | - | - | 6,687,238.92 | - | 729,241,946.67 | 735,929,185.59 | - | 735,929,185.59 |
| 2.Owners’contributionsandreductionincapital | ||||||||
| Amountofshare-basedpaymentsrecognizedinequity | - | 561,317.20 | - | - | - | 561,317.20 | - | 561,317.20 |
| 3.Profitdistribution | ||||||||
| Appropriationtosurplusreserve | - | - | - | 20,794,967.94 | (20,794,967.94) | - | - | - |
| Distributiontoshareholders | - | - | - | - | (800,020,000.00) | (800,020,000.00) | (800,020,000.00) | |
| III.Balanceatendofyear | 400,010,000.00 | 4,459,777,716.81 | 3,993,254.00 | 200,005,000.00 | 1,739,260,233.15 | 6,803,046,203.96 | 0.00 | 6,803,046,203.96 |
8.Parentcompany'sstatementofchangesinequityForthecurrentperiod
Currency:RenminbiYuan
Sharecapital
| Sharecapital | Capitalreserves | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceattheendoftheprioryearandthebeginningofyear | 400,010,000.00 | 4,459,777,944.48 | 200,005,000.00 | 1,246,057,866.12 | 6,305,850,810.60 |
| II.Changesfortheyear | |||||
| 1.Totalcomprehensiveincome | - | - | - | 300,096,158.65 | 300,096,158.65 |
| 2.Owners’contributionsandreductionincapital | |||||
| Amountofshare-basedpaymentsrecognizedinequity | - | 187,422.35 | - | - | 187,422.35 |
| 3.Profitdistribution | |||||
| Appropriationtosurplusreserve | - | - | - | - | - |
| Distributiontoshareholders | - | - | - | (400,010,000.00) | (400,010,000.00) |
| III.Balanceatendofyear | 400,010,000.00 | 4,459,965,366.83 | 200,005,000.00 | 1,146,144,024.77 | 6,206,124,391.60 |
Forthepriorperiod
Currency:RenminbiYuan
Sharecapital
| Sharecapital | Capitalreserves | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceattheendoftheprioryearandthebeginningofyear | 400,010,000.00 | 4,459,216,627.28 | 179,210,032.06 | 1,432,718,687.26 | 6,471,155,346.60 |
| II.Changesfortheyear | |||||
| 1.Totalcomprehensiveincome | - | - | - | 634,154,146.80 | 634,154,146.80 |
| 2.Owners’contributionsandreductionincapital | |||||
| Amountofshare-basedpaymentsrecognizedinequity | - | 561,317.20 | - | - | 561,317.20 |
| 3.Profitdistribution | |||||
| Appropriationtosurplusreserve | - | - | 20,794,967.94 | (20,794,967.94) | 0.00 |
| Distributiontoshareholders | - | - | - | (800,020,000.00) | (800,020,000.00) |
| III.Balanceatendofyear | 400,010,000.00 | 4,459,777,944.48 | 200,005,000.00 | 1,246,057,866.12 | 6,305,850,810.60 |
III.GeneralinformationDRCorporationLimited(the“Company”)isalimitedliabilitycompanyregisteredinShenzhen,GuangdongProvinceofthePeople’sRepublicofChina.TheCompanywasestablishedon8April2010withatermofperpetualoperation.TheCompanyisregisteredinRoom306,WingBuildingofLuohuInvestmentHoldingBuilding,No.112Qingshuihe1stRoad,QingshuiheCommunity,QingshuiheStreet,LuohuDistrict,Shenzhen.TheCompanywasestablishedbyZhangGuotaoandJinChongwhocontributedacapitalofRMB15,300andRMB14,700withproportionofcontributionof51%and49%respectively.TheadditionofcapitalhasbeenverifiedbyShenzhenZhengshengAccountingFirmthatissueda“CapitalVerificationReport”(Shenzhengsheng(Internal)YanZi[2010]No.376).ThelegalrepresentativeisZhangGuotao,andthebusinessscopeismarketingplanning.TheCompanyobtainedthenamepre-approvalnotice(No.2583011[2010])fromShenzhenAdministrationForMarketRegulationandtheapprovednamewasShenzhenYinsaiteEnterpriseManagementConsultingCo.,Ltd.Accordingtotheresolutionoftheshareholders’meetingon11July2011,JinChongtransferredhis49%equityinteresttoLuYiwen.On20July2011,theshareholders’meetingofShenzhenYinsaiteEnterpriseManagementConsultingCo.,Ltd.madearesolutiontoapprovethechangeoftheCompany’snameto“ShenzhenDarryJewelryCo.,Ltd.”(“DarryCorporation”),andthebusinessscopewaschangedto“purchaseandsaleofjewelry,diamonds,platinum,gold,silverandrelatedaccessories,cosmetics,perfumes,leatherproducts,clothing,shoesandhats;domestictrade;importandexportofgoodsandtechnology.”On28July2011,theCompanycompletedthecorrespondingindustrialandcommercialchangeregistrationprocessatShenzhenAdministrationForMarketRegulationfortheequitytransferandthechangeoftheCompany’snameandbusinessscope.Accordingtotheresolutionoftheshareholders’meetingon5September2011,theCompanyappliedtoShenzhenAdministrationForMarketRegulationon6September2011forapprovalofincreasingtheregisteredcapitalfromRMB30,000toRMB1million,andthenewregisteredcapitalwasRMB970,000,ofwhichZhangGuotaosubscribedandpaidRMB494,700,LuYiwensubscribedandpaidRMB475,300.TheproportionofcontributionofZhangGuotaoandLuYiwenwere51%and49%respectively.TheadditionofcapitalhasbeenverifiedbyErnst&YoungHuaMingLLPthatissueda“CapitalVerificationReport”(Ernst&YoungHuaMing(2020)YanZiNo.61403707_H01).Accordingtotheresolutionoftheshareholders’meetingon1December2014,theCompanyappliedtoShenzhenAdministrationForMarketRegulationon10December2014forapprovalofincreasingtheregisteredcapitalfromRMB1milliontoRMB100million,ofwhichZhangGuotaosubscribedRMB50.49millionandLuYiwensubscribedRMB48.51million.On1April2015,2April2015and8June2015,ZhangGuotaopaidcapitalcontributionsofRMB5million,RMB5millionandRMB20millionrespectively,andthepaidincapitaloftheCompanyaftertheseseriesofcapitalcontributionwasRMB31million,andtheproportionofsubscribedcapitalofZhangGuotaoandLuYiwenremainedunchanged.PursuanttotheCompany’schangedecisionon18December2015,ZhangGuotaoandLuYiwentransferredtheir51%and49%equityinterestintheCompany
toDRInvestment(Zhuhai)Co.,Ltd.(“DRInvestment”),andon29January2016and7November2016,DRInvestmentpaidcapitalcontributionsofRMB18millionandRMB51million,respectively,andthepaidincapitaloftheCompanyaftertheseseriesofcapitalcontributionwasRMB100million.TheadditionofcapitalhasbeenverifiedbyErnst&YoungHuaMingLLPthatissueda“CapitalVerificationReport”(Ernst&YoungHuaMing(2020)YanZiNo.61403707_H02).Accordingtotheresolutionoftheshareholders’meetingon22November2017,DRInvestmenttransferredits5%equityinterestintheCompanytoGongqingchengWendiNo.1InvestmentManagementPartnership(LP)(“WendiNo.1”),GongqingchengWendiNo.2InvestmentManagementPartnership(LP)(“WendiNo.2”)andGongqingchengWendiNo.3InvestmentManagementPartnership(LP)(“WendiNo.3”)respectively.On24November2017,theaboveequitytransferwascompleted,andthethreelimitedpartnershipsheld2%,2%and1%oftheequityinterestsoftheCompanyrespectively.Accordingtotheresolutionoftheshareholders’meetingoftheCompanyon19June2019,theCompanychangedfromalimitedcompanytoacorporationlimitedcompanybasedontheauditednetassets.TheCompany’snamechangedfromShenzhenDarryJewelryCo.,Ltd.toDRCorporationLimitedandtheshareholdingratioofeachshareholderbeforeandafterthechangeremainedunchanged.Asof28February2019,theadjustednetassetsofthelimitedcompanywereRMB396,540,157.74,ofwhichRMB360,000,000.00wasconvertedinto360,000,000.00ordinarysharesofthecorporationlimitedcompany.TheregisteredsharecapitalwaschangedtoRMB360,000,000.00,withaparvalueofRMB1pershare.TheportionofnetassetsexceedingthesharecapitalofRMB36,540,157.74wasaccountedas“capitalreserve”andsharedbyallshareholders.InaccordancewiththeapprovaloftheListingCommitteeoftheGrowthEnterpriseMarketoftheShenzhenStockExchangeandtheCSRC’s“ApprovalonAgreeingtheRegistrationofDRCorporationLimitedforInitialPublicOfferingofShares(ZhengJianXuKeNo.[2021]3043)”on16September2021,theCompanyconductedaninitialpublicofferingof40,001,000ordinaryshares(Ashares)withanissuepriceofRMB116.88pershare.TheadditionalregisteredcapitalfromtheIPOhasbeenverifiedbyErnst&YoungHuaMingLLPthatissueda“CapitalVerificationReport”(Ernst&YoungHuaMing(2021)YanZiNo.61403707_H01).TheCompanywaslistedontheShenzhenStockExchangeon15December2021.TheparentandultimateparentcompanyoftheGroupisDRInvestment(Zhuhai)Co.,Ltd.,whichisincorporatedinthePeople’sRepublicofChina.Thefinancialstatementswereapprovedbyboardofdirectorson25April2024.IV.Basisofpreparationofthefinancialstatements
1.BasicofpreparationThesefinancialstatementshavebeenpreparedinaccordancewithAccountingStandardsforBusinessEnterprises-BasicStandardandspecificaccountingstandards,implementationguidance,interpretationsandotherrelevantprovisionsissuedsubsequentlybytheMinistryofFinance(the“MOF”)(collectivelyreferredtoa
s“ASBEs”).Inaddition,thefinancialstatementsalsodisclosedrelevantfinancialinformationinaccordancewiththeRulesforthePreparationandReportingofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReports.
2.GoingconcernThefinancialstatementshavebeenpreparedonagoingconcernbasis.V.Significantaccountingpoliciesandaccountingestimates
Tipsofspecificaccountingpoliciesandaccountingestimates:
TheGrouphasformulatedspecificaccountingpoliciesandaccountingestimatesbasedonthecharacteristicsofactualproductionandoperation,whicharemainlyreflectedinimpairmentallowanceforreceivables,inventoryvaluationmethod,provisionfordeclineinvalueofinventories,amortizationoflong-termprepaidexpenses,depreciationofright-of-useassets,impairmentoflong-termassets,revenuerecognitionandmeasurement,etc.
1.StatementofcompliancewithAccountingStandardsforBusinessEnterprises
ThefinancialstatementspresenttrulyandcompletelythefinancialpositionsoftheGroupandtheCompanyasat31December2023,andthefinancialperformanceandthecashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises.
2.Accountingyear
TheGrouphasadoptedthecalendaryearasitsaccountingyear,i.e.,from1Januaryto31December.
3.Operatingcycle
TheGrouphasadoptedanormaloperatingcycleof12monthsasthecriterionforclassifyingtheliquidityofitsassetsandliabilities.
4.Functionalcurrency
TheCompany’sfunctionalandpresentationcurrencyisRenminbiYuan(“RMB”).ThecurrencyunitisexpressedinRMBunlessotherwisestated.EachsubsidiaryoftheGroupdeterminesitsownfunctionalcurrencybasedontheprimaryeconomicenvironmentinwhichitoperates.Inpreparationofthefinancialstatements,theirfunctionalcurrenciesaretranslatedintoRMB.
5.Determinationmethodandselectionbasisforcriteriaforsignificance
?Applicable□Notapplicable
Items
| Items | Criteriaforsignificance |
| Significantrecoveryorreversalofimpairmentallowanceforreceivables | Theamountoftherecoveryorreversalaccountsformorethan10%ofthetotalimpairmentallowanceforreceivablesandtheamountismorethan5million |
| Significantactualwrite-offofreceivables | Theamountofthewrite-offaccountsformorethan10%ofthetotalimpairmentallowanceforreceivablesandtheamountismorethanRMB5million |
| Significantdebtinvestments | Theamountofthedebtinvestmentaccountsformorethan10%ofthetotaldebtinvestment |
Significantactualwrite-offofdebtinvestments
| Significantactualwrite-offofdebtinvestments | Theamountofthewrite-offaccountsformorethan10%ofthetotalofdebtinvestments |
| Assetgroupwithsignificantimpairmentamountforthecurrentyear | TheimpairmentamountofasinglestoreassetgroupismorethanRMB2million |
| Significantprepaymentsanddividendsreceivableagedoveroneyear | Theamountoftheprepaymentanddividendsreceivableagedoveroneyearaccountsformorethan10%ofthetotalofprepaymentsanddividendsreceivableandtheamountismorethanRMB5million |
| Significantcontractliabilitiesagedoveroneyear | Theamountofthecontractliabilityagedoveroneyearaccountsformorethan10%ofthetotalofcontractliabilities |
| Significantaccountspayableandotherpayablesoverdueoragedoveroneyear | Theamountoftheaccountpayableandotherpayableoverdueoragedoveroneyearaccountsformorethan10%ofthetotalofaccountspayableandotherpayablesandtheamountismorethanRMB5million |
| Significantoverdueshort-termborrowings | Theamountoftheoverdueshort-termborrowingaccountsformorethan10%oftotalofshort-termborrowings |
| Significantcashreceiptsorpaymentsrelatingtoinvestingactivities | Theamountofthecashreceiptorpaymentrelatingtoinvestingactivitiesaccountsformorethan10%oftotalofcashreceiptsorpaymentsrelatingtoinvestingactivitiesandisgreaterthanRMB5million |
| Significantsubsidiaries | Thenetprofitofthesubsidiaryaccountsformorethan10%oftheconsolidatednetprofitoftheGroup |
6.Accountingtreatmentofbusinesscombinationsinvolvingenterprisesundercommoncontrolandb
usinesscombinationsnotinvolvingenterprisesundercommoncontrolBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingentitiesundercommoncontrolandbusinesscombinationsnotinvolvingentitiesundercommoncontrol.
(2)Businesscombinationinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Theassetsandliabilities(includinggoodwillarisingfromtheultimatecontrollingparty’sacquisitionoftheentitybeingabsorbed)thatareobtainedbytheabsorbingentityinabusinesscombinationinvolvingentitiesundercommoncontrolshallbemeasuredonthebasisoftheircarryingamountsinthefinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregateface
valueofsharesissuedasconsideration)shallbeadjustedtocapitalpremiumundercapitalreserves.Ifthecapitalpremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.
(3)Businesscombinationnotinvolvingentitiesundercommoncontrol
Abusinesscombinationnotinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination.Theacquirershallmeasuretheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinthebusinesscombinationattheirfairvaluesontheacquisitiondate.Wherethecostofcombinationexceedstheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Wherethecostofthecombinationislessthantheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,theacquirerreassessesthemeasurementofthefairvaluesoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofthecombination.Ifafterthatreassessment,thecostofthecombinationisstilllessthantheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.
7.DeterminationcriteriaofcontrolandpreparationofconsolidatedfinancialstatementsThescopeoftheconsolidatedfinancialstatements,whichincludethefinancialstatementsoftheCompanyandallofitssubsidiaries,isdeterminedonthebasisofcontrol.AsubsidiaryisanentitythatiscontrolledbytheCompany(suchasanenterprise,adeemedseparateentity,orastructuredentitycontrolledbytheCompany).Thecontrolofaninvestoroveraninvesteeisachievedonlywhentherearethreeelements:theinvestorhaspowerovertheinvestee;hasrightstovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.IftheaccountingpoliciesoraccountingperiodsadoptedbythesubsidiaryareinconsistentwiththoseoftheCompany,necessaryadjustmentsshallbemadetothefinancialstatementsofthesubsidiaryinaccordancewiththeCompany’saccountingpoliciesandaccountingperiodswhenpreparingtheconsolidatedfinancialstatements.Allintra-groupassetsandliabilities,equity,income,expensesandcashflowsrelatingtotransactionsbetweenmembersoftheGroupareeliminatedinfullonconsolidation.Whentheamountoflossfortheperiodattributabletotheminorityshareholdersofasubsidiaryexceedstheminorityshareholders’portionoftheopeningbalanceofshareholdersequityofthesubsidiary,theexcessamountsarestillallocatedagainstminorityinterests.Forsubsidiariesacquiredthroughbusinesscombinationsnotinvolvingentitiesundercommoncontrol,thefinancialperformanceandcashflowsoftheacquireeshallbeconsolidatedfromthedateonwhichtheGroupo
btainscontrolandcontinuetobeconsolidateduntilthedatesuchcontrolceases.Whilepreparingtheconsolidatedfinancialstatements,theGroupshalladjustthesubsidiary’sfinancialstatements,onthebasisofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesrecognizedontheacquisitiondate.Forsubsidiariesacquiredthroughbusinesscombinationsinvolvingentitiesundercommoncontrol,thefinancialperformanceandcashflowsoftheentitybeingabsorbedshallbeconsolidatedfromthebeginningoftheperiodinwhichthecombinationoccurs.Whilepreparingthecomparativefinancialstatements,adjustmentsaremadetorelateditemsinthefinancialstatementsforthepriorperiodasifthereportingentityafterthecombinationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedthecontrol.TheGroupreassesseswhetherornotitcontrolsaninvesteeifanychangeinfactsandcircumstancesindicatesthattherearechangestooneormoreofthethreeelementsofcontrol.
8.RecognitioncriteriaofcashandcashequivalentsCashcomprisestheGroup’scashonhandandbankdepositsthatcanbereadilywithdrawnondemand.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandaresubjecttoaninsignificantriskofchangesinvalue.
9.Foreigncurrencytransactionsandforeigncurrencytranslation
TheGrouptranslatesforeigncurrencytransactionsintoitsfunctionalcurrency.Foreigncurrencytransactionsareinitiallyrecorded,oninitialrecognitioninthefunctionalcurrencyusingthespotexchangeratesprevailingatthedatesoftransactions,butthefundsinvestedbyinvestorsdenominatedinforeigncurrenciesaretranslatedatthespotexchangeratesprevailingatthedatesoftransactions.Monetaryitemsdenominatedinforeigncurrenciesaretranslatedatthespotexchangeratesrulingatthebalancesheetdate.Differencesarisingonsettlementortranslationofmonetaryitemsarerecognizedinprofitorloss,withtheexceptionofthoserelatingtoforeigncurrencyborrowingsspecificallyfortheconstructionandacquisitionofqualifyingassets,whicharecapitalizedinaccordancewiththeguidanceforcapitalizationofborrowingcosts.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangeratesuponinitialrecognition,andtheamountdenominatedinthefunctionalcurrencyisnotchanged.Non-monetaryitemsmeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatewhenthefairvaluewasmeasured.Theresultingexchangedifferencesarerecognizedinprofitorlossorothercomprehensiveincomedependingonthenatureofthenon-monetaryitems.Forforeignoperations,theGrouptranslatestheirfunctionalcurrencyamountsintoRMBwhenpreparingthefinancialstatementsasfollows:asatthebalancesheetdate,theassetsandliabilitiesaretranslatedusingthespotexchangerateatthebalancesheetdate;andequityitemsotherthan“unappropriatedprofit”aretranslatedatthespotexchangeratesatthedatesoftransactions;revenueandexpenseitemsinprofitorlossaretranslatedusingthespotexchangeratesprevailingatthedatesoftransactions.Theresultingexchangedifferencesarerecognizedinothercomprehensiveincome.Ondisposalofaforeignoperation,thecomponentofothercomprehensiveincomerelatingtothatparticularforeignoperationisrecognizedinprofitorloss.Ifthe
disposalonlyinvolvesaportionofaparticularforeignoperation,thecomponentofothercomprehensiveincomerelatingtothatparticularforeignoperationisrecognizedinprofitorlossonapro-ratabasis.Foreigncurrencycashflowsandthecashflowsofforeignsubsidiariesaretranslatedusingthespotexchangeratesprevailingonthedatesofcashflows.Theeffectofexchangeratechangesoncashisseparatelypresentedasanadjustmentiteminthestatementofcashflows.
10.Financialinstruments
Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.
(1)RecognitionandderecognitionTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfinancialassets)isprimarilyderecognized(i.e.,removedfromtheGroup’sconsolidatedbalancesheet)when:
①therightstoreceivecashflowsfromthefinancialassethaveexpired;or
②theGrouphastransferreditsrightstoreceivecashflowsfromthefinancialasset,orhasassumedanobligationtopaythereceivedcashflowsinfullwithoutmaterialdelaytoathirdpartyundera“pass-through”arrangement;andeitherhastransferredsubstantiallyalltherisksandrewardsofthefinancialasset,orhasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontrolofthefinancialasset.Afinancialliabilityisderecognizedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandarecognitionofanewliability,andthedifferencebetweentherespectivecarryingamountsisrecognizedinprofitorloss.Regularwaypurchasesandsalesoffinancialassetsarerecognizedandderecognizedusingtradedateaccounting.Regularwaypurchasesorsalesoffinancialassetsarepurchasesorsalesoffinancialassetsinaccordancewiththetermsofcontractsthatrequiredeliverywithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplace.ThetradedateisthedatethattheGroupcommittedtopurchaseorsellafinancialasset.
(2)ClassificationandmeasurementoffinancialliabilitiesTheGroup’sfinancialassetsareclassifiedatinitialrecognitionintofinancialassetsatfairvaluethroughprofitorlossandfinancialassetsatamortizedcost,basedontheGroup’sbusinessmodelformanagingfinancialassetsbyenterprisesandthecontractualcashflowcharacteristicsofthefinancialassets.
FinancialassetsaremeasuredatfairvalueoninitialrecognitionbutaccountsreceivableornotesreceivablearisingfromthesaleofgoodsorrenderingofservicesthatdonotcontainsignificantfinancingcomponentsorforwhichtheGrouphasappliedthepracticalexpedientofnotadjustingtheeffectofasignificantfinancingcomponentduewithinoneyear,areinitiallymeasuredatthetransactionprice.Forfinancialassetsatfairvaluethroughprofitorloss,relevanttransactioncostsaredirectlyrecognizedinprofitorloss,andtransactioncostsrelatingtootherfinancialassetsareincludedintheinitialrecognitionamounts.Thesubsequentmeasurementoffinancialassetsdependsontheirclassificationasfollows:
DebtinvestmentsmeasuredatamortizedcostTheGroupmeasuresfinancialassetsatamortizedcostifbothofthefollowingconditionsaremet:thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Interestincomeofsuchfinancialassetsisrecognizedusingtheeffectiveinterestmethod.Gainsandlossesarerecognizedincurrentprofitorlosswhentheassetisderecognized,modifiedorimpaired.
FinancialassetsatfairvaluethroughprofitorlossThefinancialassetsotherthantheabovefinancialassetsmeasuredatamortizedcostandfinancialassetsatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitorloss.Suchfinancialassetsaresubsequentlymeasuredatfairvaluewithnetchangesinfairvaluerecognizedinprofitorloss.
(3)ClassificationandmeasurementoffinancialliabilitiesOtherthanthosearisingfromthegoldleasingbusiness,theGroup’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesmeasuredatamortizedcost.Transactioncostsrelatingtothefinancialliabilitiesmeasuredatamortizedcostareincludedintheinitialrecognitionamounts.Thesubsequentmeasurementoffinancialliabilitiesdependsontheirclassificationasfollows:
FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.Financialliabilitiesdesignatedatfairvaluethroughprofitorlossaresubsequentlymeasuredatfairvalueandgainsorlossesarerecognizedinprofitorloss,exceptforthegainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincome.IfgainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincomewillleadtoorexpandaccountingmismatchinprofitorloss,theGroupwillincludeallthechangesinfairvalue(includingtheamountaffectedbychangesintheGroup’sowncreditrisk)ofsuchfinancialliabilitiesinprofitorloss.
Financialliabilitiesaredesignatedasuponinitialrecognitionatfairvaluethroughprofitorlossonlyifoneofthefollowingconditionsismet:
(1)Suchdesignationeliminatesorsignificantlyreducesaccountingmismatches;
(2)Acombinationoffinancialinstrumentsismanagedandevaluatedonafairvaluebasis,inaccordancewiththedocumentedriskmanagementorinvestmentstrategy,andinformationaboutthemisreportedtokeymanagementpersonnelonthatbasis;
(3)Ahybridinstrumentthatcontainsoneormoreembeddedderivatives,unlesstheseembeddedderivativesdonotsignificantlychangethecashflowsofthehybridinstrument,oritisapparentthattheseembeddedderivativesshouldnotbeseparatedfromtherelatedhybridinstrument;
(4)Ahybridinstrumentthatcontainsembeddedderivativesthatneedtobeseparatedbutcannotbemeasuredseparatelyonacquisitionoratthebalancesheetdate.Financialliabilitiesdesignatedasatfairvaluethroughprofitorlossuponinitialrecognitioncannotbereclassifiedasothercategoriesoffinancialliabilities;othercategoriesoffinancialliabilitiescannotbere-designatedasfinancialliabilitiesatfairvaluethroughprofitorlossafterinitialrecognition.Basedontheaboveconditions,suchfinancialliabilitiesdesignatedbytheGroupmainlyincludefinancialliabilitiesheldfortradingarisingfromthegoldleasingbusiness.
FinancialliabilitiesatamortizedcostAfterinitialrecognition,suchfinancialliabilitiesaremeasuredatamortizedcostusingtheeffectiveinterestmethod.
(4)ImpairmentoffinancialassetsBasedonexpectedcreditlosses,theGroupundertakesimpairmenttreatmentandrecognizeslossprovisionsforfinancialassetsmeasuredatamortizedcost.Forthereceivablesthatdonotcontainasignificantfinancingcomponent,theGroupappliesthesimplifiedapproachtorecognizealossallowancebasedonlifetimeECLs.Forfinancialassetsotherthanabovemeasuredbythesimplifiedapproach,theGroupevaluatesateachbalancesheetdatewhetherthecreditriskhassignificantincreasedsinceinitialrecognition.Ifthecreditriskhasnotsignificantlyincreasedsinceinitialrecognition(stage1),theGroupshallmeasurelossprovisionsbasedontheamountofexpectedcreditlossesforthenext12monthsandcalculateinterestincomeaccordingtotheoutstandingbalanceandeffectiveinterestrate;ifthecreditriskhassignificantlyincreasedsinceinitialrecognitionbutarenotcredit-impaired(stage2),theGroupshallmeasurelossprovisionsbasedontheamountofexpectedcreditlossesfortheentirelifetimeandcalculateinterestincomeaccordingtotheoutstandingbalanceandeffectiveinterestrate;ifthecreditimpairmenthasoccurredafterinitialrecognition(stage3),theGroupshallmeasurelossprovisionsbasedontheamountofexpectedcreditlossesfortheentirelifetimeandcalculateinterestincomeattheamortizedcostandeffectiveinterestrate.Atthebalancesheetdate,iftheGrou
ponlyhasfinancialinstrumentswithlowercreditrisk,theGroupassumesthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.TheGroupevaluatestheexpectedcreditlossesoffinancialinstrumentsonanindividualandportfoliobasis.TheGrouptakesintoaccountthecreditriskcharacteristicsofdifferentcustomersandevaluatestheexpectedcreditlossesofrelevantfinancialinstrumentsonthebasisoftheircommonriskcharacteristicsandtheagingportfolio.TheGroupdeterminestheagingaccordingtothebillingdate.TheGroupassessesECLsindividually,exceptforthoseoffinancialinstrumentsevaluatedbasedontheaboveportfolio.FortheGroup’sdisclosureofthecriteriafordeterminingthesignificantincreaseincreditriskandthedefinitionofassetsthathaveincurredcreditimpairment,pleaserefertoNoteXII.TheGroupmeasuresexpectedcreditlossesonafinancialinstrumentinawaythatreflects:anunbiasedandprobability-weightedamountthatisdeterminedbyevaluatingarangeofpossibleoutcomes;thetimevalueofmoney;andreasonableandsupportableinformationthatisavailablewithoutunduecostoreffortatthebalancesheetdateaboutpastevents,currentconditionsandforecastsoffutureeconomicconditions.WhentheGroupnolongerreasonablyexpectstocollectallorpartofthecontractualcashflowsofthefinancialasset,theGroupdirectlywritesdowntheoutstandingbalanceofthefinancialasset.
(5)OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetifthereisacurrentlyenforceablelegalrighttooffsettherecognizedamountsandthereisanintentiontosettleonanetbasis,ortorealizetheassetsandsettletheliabilitiessimultaneously.
(6)TransfersoffinancialassetsAfinancialassetisderecognizedwhentheGrouphastransferredsubstantiallyalltherisksandrewardsoftheassettothetransferee.AfinancialassetisnotderecognizedwhentheGroupretainssubstantiallyalltherisksandrewardsofthefinancialasset.WhentheGrouphasneithertransferrednorretainedsubstantiallyalltherisksandrewardsofthefinancialasset,iteitherderecognizesthefinancialassetandrecognizestheassetsandliabilitiescreatedinthetransferwhenithasnotretainedcontroloftheasset;orcontinuestorecognizethetransferredassettotheextentoftheGroup'scontinuinginvolvement,inwhichcase,theGroupalsorecognizesanassociatedliability.Continuinginvolvementthattakestheformofaguaranteeoverthetransferredfinancialassetismeasuredatthelowerofthecarryingamountofthefinancialassetandtheguaranteeamount.TheguaranteeamountisthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.TheCompanycomplieswiththedisclosurerequirementsofthe“JewelleryRelatedBusiness”inthe“Self-reg
ulatoryGuidelinesforListedCompaniesonShenzhenStockExchangeNo.3-DisclosureofIndustryInformation”.
11.Accountsreceivable
Themethodofdeterminingexpectedcreditlossesonaccountsreceivableandrelatedaccountingtreatmentcanbereferredtothepoliciesrelatingtofinancialinstruments.
12.Otherreceivables
Themethodofdeterminingexpectedcreditlossesonotherreceivablesandtheaccountingtreatmentcanbereferredtotheaccountingpoliciesregardingfinancialinstruments.
13.Contractassets
TheGrouppresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenthefulfillmentofperformanceobligationsandpaymentsfromcustomers.TheGrouppresentscontractassetsandcontractliabilitiesunderthesamecontractonanetbasisafteroffsettingthemagainsteachother.AcontractassetistherighttoconsiderationinexchangeforgoodsorservicesthattheGrouphastransferredtoacustomer,andthatrightisconditionedonsomethingotherthanthepassageoftime.FordetailsofhowtheGroupmeasuresandaccountsfortheECLsofacontractasset,refertoNoteV.10.
14.Inventories
TheCompanyisrequiredtocomplywiththedisclosurerequirementsforjewelry-relatedbusinessspecifiedintheSelf-disciplinarySupervisionGuidelinesNo.3forCompaniesListedonShenzhenStockExchange-IndustryInformationDisclosure.Inventoryincludesrawmaterials,workinprocess,finishedproducts,turnovermaterials,shippedcommoditiesandcommissionedprocessingmaterials.Inventoriesareinitiallycarriedatcost.Costofinventoriescomprisesallcostsofpurchase,manufactureoverheadandothercost.Theactualcostofinventoriesupondeliveryiscalculatedusingthespecificidentificationmethod.Turnovermaterialsincludelowvalueconsumablesandpackingmaterials,whichareamortizedusingtheimmediatewrite-offmethod.Theperpetualinventorysystemismaintainedforthestocksystem.Atthebalancesheetdate,inventoriesarestatedatthelowerofcostandnetrealizablevalue.Theinventoriesarewrittendownbelowcosttonetrealizablevalueandthewrite-downisrecognizedinprofitorlossifthecostishigherthanthenetrealizablevalue.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Inventoriesarewrittendownitembyitem.TheCompanyisrequiredtocomplywiththedisclosurerequirementsforretailindustryspecifiedintheSelf-di
sciplinarySupervisionGuidelinesNo.3forCompaniesListedonShenzhenStockExchange-IndustryInformationDisclosure.
15.DebtinvestmentsForthedeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofdebtinvestments,refertopoliciesrelatedtofinancialinstruments.
16.Long-termequityinvestments
Long-termequityinvestmentsincludeequityinvestmentsinsubsidiaries.Thelong-termequityinvestmentthattheCompanycancontroltheinvesteeisaccountedbycostmethodinindividualfinancialstatementsoftheCompany.Controlisthepowerovertheinvestee,exposureorrightstovariablereturnsfromitsinvolvementwiththeinvestee,andtheabilitytouseitspowerovertheinvesteetoaffectthenumberoftheinvestor'sreturns.Underthecostmethod,along-termequityinvestmentismeasuredatitsinitialinvestmentcost.Whenadditionalinvestmentismadeortheinvestmentisrecouped,thecostofthelong-termequityinvestmentisadjustedaccordingly.Cashdividendsorprofitdistributionsdeclaredbytheinvesteearerecognizedasinvestmentincomeinprofitorloss.Ondisposalofalong-termequityinvestment,thedifferencebetweenthecarryingamountandtheactualacquisitionpriceisrecognizedinprofitorlossfortheperiod.
17.Fixedassets
(1)RecognitioncriteriaAfixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Subsequentexpendituresincurredforafixedassetthatmeetstherecognitioncriteriashallbeincludedinthecostofthefixedasset,andthecarryingamountofthecomponentofthefixedassetthatisreplacedshallbederecognized.Otherwise,suchexpendituresarerecognizedinprofitorlossasincurred.Fixedassetsareinitiallymeasuredatcost.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relevanttaxesandanydirectlyattributableexpenditureforbringingtheassettoitsworkingconditionforitsintendeduse.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastateachyearend,andmakesadjustmentsifnecessary.
(2)Depreciationmethod
Category
| Category | Depreciationmethod | Depreciationperiod | Residualvaluerate(%) | Annualdepreciationrate(%) |
| Transportationfacilities | Straight-linemethod | 4years | 5% | 23.75% |
| Officeequipmentandotherfacilities | Straight-linemethod | 3-5years | 5% | 19.00%-31.67% |
18.Borrowingcosts
Theborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalized.Theamountsofotherborrowingcostsincurredarerecognizedasanexpenseintheperiodinwhichtheyareincurred.Borrowingcostsarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedgetsreadyforitsintendeduseorsale.Anyborrowingcostssubsequentlyincurredarerecognizedinprofitorloss.Duringthecapitalizationperiod,theamountofinteresteligibleforcapitalizationforeachaccountingperiodshallbedeterminedasfollows:
(1)wherefundsareborrowedspecificallyforthepurposeofobtainingaqualifyingasset,theamountofinteresteligibleforcapitalizationistheactualinterestcostsincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds;or
(2)wherefundsareborrowedgenerallyforthepurposeofobtainingaqualifyingasset,theamountofinteresteligibleforcapitalizationisdeterminedbyapplyingaweightedaverageinterestrateonthegeneralborrowingstotheweightedaverageoftheexcessofthecumulativeexpendituresontheassetovertheexpendituresontheassetfundedbythespecificborrowings.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallybyactivitiesotherthanthosenecessarytogettheassetreadyforitsintendeduseorsale,whenthesuspensionisforacontinuousperiodofmorethan3months.Borrowingcostsincurredduringtheseperiodsarerecognizedasanexpenseinprofitorlossuntiltheacquisition,constructionorproductionisresumed.
19.Intangibleassets
(1)Usefullifeanditsdeterminationbasis,estimation,amortizationmethodorreviewproceduresAnintangibleassetshallberecognizedonlywhenitisprobablethattheeconomicbenefitsassociatedwiththeassetwillflowtotheGroupprobablyandthecostoftheassetcanbemeasuredreliably.TheusefullifeofanintangibleassetisdeterminedonthebasisoftheperiodforwhichitwillprovideeconomicbenefitstotheGroup.AnintangibleassetisregardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.
Anintangibleassetwithafiniteusefullifeisamortizedusingthestraight-linemethodoveritsusefullife.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodatleastateachyearendandmakesadjustmentifnecessary.TheintangibleassetsoftheGrouparemainlysoftwareproductsandtrademarks,andtheyareamortizedusingthestraight-linemethodovertheirusefullives.Theirusefullivesareasfollows:
Category
| Category | Usefullife |
| Software | 1-5years |
| Trademark | 5years |
(2)Theaggregatescopeofresearchanddevelopmentexpenditureandrelevantaccountingtreatment
TheGroupclassifiestheexpendituresonaninternalresearchanddevelopmentprojectintoexpenditureontheresearchphaseandexpenditureonthedevelopmentphase.Expenditureontheresearchphaseisrecognizedinprofitorlossasincurred.ExpenditureonthedevelopmentphaseiscapitalizedonlywhentheGroupcandemonstrateallofthefollowing:(i)thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;(ii)theintentiontocompletetheintangibleassetanduseorsellit;(iii)howtheintangibleassetwillgenerateprobableeconomicbenefits(amongotherthings,theGroupcandemonstratetheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset);(iv)theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;and(v)theabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringthedevelopmentphase.Expenditureonthedevelopmentphasewhichdoesnotmeettheseabovecriteriaisrecognizedinprofitorlosswhenincurred.
20.Impairmentoflong-termassets
TheGroupdeterminestheimpairmentofassets,otherthantheimpairmentofinventories,deferredtaxassetsandfinancialassets,usingthefollowingmethods:
TheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatanassetmaybeimpaired.Ifanyindicationexiststhatanassetmaybeimpaired,theGroupestimatestherecoverableamountoftheassetandperformsimpairmenttesting.Therecoverableamountofanassetisthehigherofitsfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.TheGroupestimatestherecoverableamountonanindividualbasisunlessitisnotpossibletoestimatetherecoverableamountoftheindividualasset,inwhichcasetherecoverableamountisdeterminedfortheassetgrouptowhichtheassetbelongs.Identificationofanassetgroupisbasedonwhethermajorcashinflowsgeneratedbytheassetgrouparelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislessthanitscarryingamount,thecarryingamountisreducedtotherecoverableamountbytheGroup.Thereductioninthecarryingamountistreatedasani
mpairmentlossandrecognizedinprofitorloss.Aprovisionforimpairmentlossoftheassetisrecognizedaccordingly.Oncetheaboveimpairmentlossisrecognized,itcannotbereversedinsubsequentaccountingperiods.
21.Long-termprepaidexpensesLong-termprepaidexpensesareamortizedusingthestraight-linemethodasfollows:
Category
| Category | Amortizationperiod |
| Leaseholdimprovements | 1-5years |
| Others | 1-3years |
22.Contractliabilities
AcontractliabilityistheobligationtotransfergoodsorservicestoacustomerforwhichtheCompanyhasreceivedconsiderationoranamountofconsiderationisduefromthecustomer,suchasanamountofconsiderationthatanentityhasreceivedbeforethetransferofthepromisedgoodsorservices.
23.Employeebenefits
(1)Accountingtreatmentofshort-termemployeebenefitsDuringanaccountingperiodwhenemployeesrenderservicestotheentity,theamountofshort-termemployeebenefitsactuallyincurredshouldberecognizedasaliabilityandberecognizedinprofitorlossforthecurrentperiodorincostofrelatedassets.
(2)Accountingtreatmentofpost-employmentbenefitsTheemployeesoftheGroupparticipateinapensionschemeandunemploymentinsurancemanagedbythelocalgovernments,andthecorrespondingexpensesshallbeincludedinthecostofrelatedassetsorprofitorloss.
(3)Accountingtreatmentofterminationbenefits
TheGroupprovidesterminationbenefitstoemployeesandrecognizesanemployeebenefitsliabilityforterminationbenefits,withacorrespondingchargetoprofitorloss,attheearlierofwhentheGroupcannolongerwithdrawtheofferofthosebenefitsresultingfromanemploymentterminationplanoracurtailmentproposalandwhentheGrouprecognizescostsinvolvingthepaymentofterminationbenefits.
24.ProvisionsAnobligationrelatedtoacontingencyshallberecognizedbytheGroupasaprovisionwhen(i)theobligationisapresentobligationoftheGroup,(ii)itisprobablethatanoutflowofeconomicbenefitsfromtheGroupwillberequiredtosettletheobligation,and(iii)areliableestimatecanbemadeoftheamountoftheobligation,exceptforcontingentconsiderationsandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingentitiesundercommoncontrol.Aprovisionisinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyasawhole.Thecarryingamountofprovisionsisreviewedatthebalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.
25.Share-basedpayments
Ashare-basedpaymentisclassifiedaseitheranequity-settledshare-basedpaymentoracash-settledshare-basedpayment.Anequity-settledshare-basedpaymentisatransactioninwhichtheGroupreceivesservicesandusessharesorotherequityinstrumentsasconsiderationforsettlement.Anequity-settledshare-basedpaymentinexchangeforservicesreceivedfromemployeesismeasuredatthefairvalueoftheequityinstrumentsgrantedtotheemployees.Ifsuchequity-settledshare-basedpaymentcouldvestimmediately,relatedcostsorexpensesatanamountequaltothefairvalueonthegrantdatearerecognized,withacorrespondingincreaseincapitalreserves;ifsuchequity-settledshare-basedpaymentcouldnotvestuntilthecompletionofservicesforavestingperiod,oruntiltheachievementofaspecifiedperformancecondition,theGroupateachbalancesheetdateduringthevestingperiodrecognizestheservicesreceivedforthecurrentperiodasrelatedcostsandexpenses,withacorrespondingincreaseincapitalreserves,atanamountequaltothefairvalueoftheequityinstrumentsatthegrantdate,basedonthebestestimateofthenumberofequityinstrumentsexpectedtovest.Thefairvalueofequityinstrumentsisdeterminedbasedonanassessmentbyathird-partyindependentassetappraiser,asdescribedinNoteXV.Wherethetermsofanequity-settledshare-basedpaymentaremodified,asaminimumanexpenseisrecognizedasifthetermshadnotbeenmodified.Inaddition,anexpenseisrecognizedforanymodificationthatincreasesthetotalfairvalueoftheshare-basedpayments,orisotherwisebeneficialtotheemployeeasmeasuredatthedateofmodification.Whereanequity-settledshare-basedpaymentiscanceled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognizedforthepaymentisrecognizedimmediately.Ifanemployeeorotherpartiescanchoosewhethertomeetanon-vestingcondition,theGrouptreatstheemployee’sorotherparties'failuretomeetthatnon-vestingconditionduringthevestingperiodasacancellation.However,ifanewawardissubstitutedforthecanceledaward,andisdesignatedasareplacementonthedatethatitisgranted,thecanceledandnewawardsaretreatedasiftheywereamodificationoftheoriginalaward.Thecostofcash-settledtransactionsismeasuredatthefairvalueoftheliabilitywhichisdeterminedonthebasisofsharesorotherequityinstrumentsoftheGroup.
26.RevenueDisclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementbytypeofbusinessTheGrouprecognizesrevenuewhenithasfulfilleditsperformanceobligationsunderthecontract,thatis,whenthecustomerobtainscontroloftherelevantgoodsorservices.Theacquisitionofcontroloftherelevantgoodsorservicesisdefinedastheabilitytodominatetheuseofthegoodsortheprovisionoftheservicesandtoderivesubstantiallyalltheeconomicbenefitstherefrom.Contractsforthesaleofgoods
AcontractforthesaleofgoodsbetweentheGroupandthecustomerusuallyincludescommitmentstotransferthegoods,whichvarydependingontheagreementwiththecustomer.TheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringcontrolofthegoodstothecustomerisdeterminedasthetransactionpriceinaccordancewiththetermsofthecontractandincombinationwithpastbusinesspractices.TheprincipalbusinessoftheGroupistoretailgoodstocustomersusingtheself-operatedmodelthroughofflinedirect-operatedstores,offlinejoint-operatedstoresande-commerceplatforms.TheGrouprecognizesrevenueatthepointintheperformanceofeachindividualperformanceobligationtakingintoaccountacombinationoftheacquisitionofthecurrentrighttoreceivethegoods,thetransferofsignificantrisksandrewardsofownershipofgoods,thetransferoflegaltitletogoods,thetransferofphysicalpossessionofgoods,andthecustomer'sacceptanceofgoods.FortheOfflineJoint-Operatedbusinessmodel,cooperativeshoppingmallsprovidestoresorcounterstotheGroupforthesaleofgoods,andtheshoppingmallsreceiveacommissionaccordingtoacertainpercentageoftheturnover.Havingconsideredthelegalformofthecontractandrelevantfactsandcircumstances(theprimaryresponsibilityforthetransferofgoodstocustomers,theinventoryriskborebeforeorafterthetransferofgoods,andwhethertheGroupisentitledtodeterminethetransactionpriceofthegoods),theGroupconsidersthattheGroupundertakesprimaryresponsibilityforthetransferofgoodstocustomers,isentitledtodeterminethetransactionprice,andbearstheinventoryrisk.Therefore,theGroupisaprincipalandrecognizesrevenuebasedonthetotalconsiderationreceivedorreceivablewhencustomersreceivethegoods.Forsaleswitharightofreturn,theGrouprecognizestherevenueintheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringcontrolofthegoodstothecustomer,andrecognizestheamountexpectedtoberefundedasaresultofthesalesreturnasarefundliability.Atthesametime,anassetrecognizedforanentity’srighttorecovergoodsfromacustomeronsettlingarefundliabilityismeasuredbyreferencetothecarryingamountofthegoodslessanyexpectedcoststorecoverthegoods(includingpotentialdecreasesinthevalueofthereturnedgoods),thatis,right-of-returnassets,andrecognizedcostofsalesbasedonthecarryingamountofthetransferredgoodsatthetimeoftransferofthegoodslessthenetamountoftheassetcostabove.Ateachbalancesheetdate,theGroupre-estimatethefuturesalesreturnandremeasurestheassetsandliabilitiesabove.TheGroupprovidesawarrantyinconnectionwiththesaleofagoodinaccordancewiththecontractandtherelevantlawsandregulations,etc.TheGroupaccountsforassurance-typequalityassuranceinordertoassurecustomersthatthegoodssoldmeettheestablishedstandards,inaccordancewithNoteV.24Forservice-typequalityassurancethatprovidesaseparateserviceinadditiontotheestablishedstandardsforassuringthecustomerthatthegoodssoldmeettheestablishedstandards,theGroupapportionspartofthetransactionpricetotheservice-typequalityassuranceinproportiontotherelativeproportionoftheseparatesellingpricefortheprovisionofthequalityassuranceofgoodsandservices,andrecognizesrevenuewhenthecustomeracquirescontroloftheservice.Whenassessingwhetheraservice-typewarrantyprovidesacustomerwi
thaseparateserviceinadditiontotheassurancethatthegoodcomplieswithagreed-uponspecifications,theGroupconsiderswhetherthewarrantyisrequiredbylaw,thelengthofthewarrantycoverageperiodandthenatureofthetasksthattheGrouppromisestoperform,etc.Forcontractswithadditionalcustomerpurchaseoptions,theGroupevaluatestheoptiontoprovideamaterialrighttothecustomerwhenthecustomeracquirescontroloftherelevantgoods.Revenueisrecognizedonthebasisoftheamountofconsiderationexpectedtobeentitledtobereceivedasaresultofthetransferofgoodstothecustomer,andrevenueisapportionedtoeachindividualperformanceobligationbasedontherelativeproportiontotheindividualsellingpricesofthegoodscommittedtotheindividualperformanceobligations.DifferentrevenuerecognitionmethodsandmeasurementmethodsinvolvedindifferentoperatingmodelsadoptedbysimilarbusinessesTheCompanyshallcomplywiththedisclosurerequirementsof“retailindustry”inShenzhenStockExchangeGuidelineNo.3onSelf-MonitoringforListedCompanies–IndustryInformationDisclosure.TheCompanyshallcomplywiththedisclosurerequirementsof“jewelry-relatedbusiness”inShenzhenStockExchangeGuidelineNo.3onSelf-MonitoringforListedCompanies–IndustryInformationDisclosure.
27.Governmentgrants
Governmentgrantsarerecognizedwhenallattachingconditionswillbecompliedwithandthegrantswillbereceived.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasureatfairvalue;iffairvalueisnotreliablydeterminable,itismeasuredatanominalamount.Ifgovernmentdocumentsstipulatethatitisusedforthepurchase,construction,orotherformsoflong-termassets,itshallberegardedasgovernmentgrantsrelatedtoassets;Ifthegovernmentdocumentsarenotclear,thejudgmentshallbebasedonthebasicconditionsthatmustbemettoobtainthegovernmentgrant.Ifthebasicconditionsaretoformlong-termassetsthroughpurchase,constructionorothermeans,itshallberegardedasgovernmentgrantsrelatedtoassets,andotherwiseitshallberegardedasgovernmentgrantsrelatedtoincome.Agovernmentgrantrelatedtoincomeisaccountedforasfollows:(i)ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognizedasdeferredincome,andreleasedinprofitorlossoroffsetagainstrelatedexpensesovertheperiodsinwhichtherelatedcostsarerecognized;or(ii)ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,itisrecognizedimmediatelyinprofitorlossoroffsetagainstrelevantexpenses.Agovernmentgrantrelatingtoanassetshallbeoffsetagainstthecarryingamountsofrelevantassets,orrecognizedasdeferredincomeandamortizedinprofitorlossovertheusefullifeoftherelatedassetbyannual
installmentsinasystematicandrationalway(however,agovernmentgrantmeasuredatanominalamountisrecognizeddirectlyinprofitorloss).Wheretheassetsaresold,transferred,retiredordamagedbeforetheendoftheirusefullives,therestoftheremainingdeferredincomeisreleasedtoprofitorlossfortheperiodinwhichtherelevantassetsaredisposedof.
28.Deferredtaxassets/deferredtaxliabilitiesDeferredtaxisprovidedusingthebalancesheetliabilitymethod,onalltemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts,andtemporarydifferencesbetweenthetaxbasesandthecarryingamountsoftheitems,whichhaveataxbaseaccordingtorelatedtaxlawsbutarenotrecognizedasassetsandliabilities.Deferredtaxliabilitiesarerecognizedforalltaxabletemporarydifferences,except:
(1)whenthetaxabletemporarydifferencearisesfromtheinitialrecognitionofgoodwill,oranassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeoftransaction,affectsneitheraccountingprofitnortaxableprofitorloss,andnoequaltaxableanddeductibletemporarydifferencesariseoninitialrecognitionoftheassetandliabilityinsuchtransaction;
(2)inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventures,whenthetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture.Deferredtaxassetsarerecognizedforalldeductibletemporarydifferences,andthecarryforwardofunusedtaxlossesandanyunusedtaxcredits.Deferredtaxassetsarerecognizedtotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandunusedtaxcreditscanbeutilized,except:
(1)whenthedeductibletemporarydifferencearisesfromatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss,andnoequaltaxableanddeductibletemporarydifferencesariseoninitialrecognitionoftheassetandliabilityinsuchtransaction;
(2)inrespectofthedeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventures,thetemporarydifferenceswillbereversedintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilizedinthefuture.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled,inaccordancewiththerequirementsoftaxlaws.ThemeasurementofdeferredtaxassetsanddeferredtaxliabilitiesreflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichtheGroupexpects,atthebalancesheetdate,torecovertheassetsorsettletheliabilities.
Thecarryingamountofdeferredtaxassetsisreviewedatthebalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailableinfutureperiodstoallowthebenefitofdeferredtaxassetstobeutilized.Unrecognizeddeferredtaxassetsarereassessedatthebalancesheetdateandarerecognizedtotheextentthatithasbecomeprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassetstoberecovered.DeferredtaxassetsanddeferredtaxliabilitiesareoffsetifandonlyiftheGrouphasalegallyenforceablerighttosetoffcurrenttaxassetsandcurrenttaxliabilities,andthedeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasis,ortorealizetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtoberecovered.
29.Leases
(1)AccountingtreatmentforleasesaslesseeAtinceptionofacontract,theGroupassesseswhetherthecontractis,orcontains,alease.Ifapartyofthecontractconveystherighttocontroltheuseofanidentifiedassetoridentifiedassetsforaperiodoftimeinexchangeforconsideration,thecontractshallbealeasecontractorcontainslease.AslesseeTheGrouprecognizesright-of-useassetsandleaseliabilitiesforleases.
(1)Right-of-useassetsAtthecommencementdateoftheleaseterm,theGrouprecognizesitsrighttousetheleasedassetduringtheleasetermasaright-of-useassetandisinitiallymeasuredatcost.Right-of-useassetcostsinclude:theinitialmeasuredamountoftheleaseliability;theamountofleasepaymentspaidonorbeforethestartdateoftheleaseperiod(deducttheamountrelatedtotheleaseincentivealreadyenjoyed);initialdirectcostsincurredbythelessee;thecostsexpectedofthelesseetoincurtodismantleandremovetheleasedassets,restorethepremiseswheretheleasedassetsarelocated,orrestoretheleasedassetstothestateagreedinthetermsofthelease.WheretheGroupremeasuresaleaseliabilityasaresultofchangesinleasepayments,thecarryingamountoftheright-of-useassetisadjustedaccordingly.Theright-of-useassetsaredepreciatedonastraight-linebasissubsequentlybytheGroup.IftheGroupisreasonablycertainthattheownershipoftheunderlyingassetwillbetransferredtotheGroupattheendoftheleaseterm,theGroupdepreciatestheassetfromthecommencementdatetotheendoftheusefullifeoftheasset.Otherwise,theGroupdepreciatestheassetsfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheassetortheendoftheleaseterm.
(2)LeaseliabilitiesAtthecommencementdateofthelease,theGrouprecognizesthepresentvalueoftheunpaidleasepaymentsasaleaseliability.Leasepaymentsincludefixedandsubstantialfixedpaymentsnetofleaseincentives,
variableleasepaymentsdependingonindexorratio,amountsexpectedtobepayablebasedontheresidualvalueoftheguarantee,andtheexercisepriceofthepurchaseoptionortheamounttoberequiredtoexercisetheterminationoption,providedthattheGroupreasonablydeterminesthattheoptionorthetermoftheleasereflectstheGroup’sexerciseoftheoptiontoterminatethelease.Incalculatingthepresentvalueofleasepayments,theGroupusestheimpliedinterestrateoftheleaseasthediscountrate;Iftheinterestrateincludedintheleasecannotbedetermined,theinterestrateofthelessee’sincrementalborrowingshallbeusedasthediscountrate.TheGroupcalculatestheinterestexpenseoftheleaseliabilityduringeachperiodoftheleaseterminaccordancewiththeconstantperiodicrateofinterestandrecognizesitinprofitandlossforthecurrentperiod,exceptotherwisestipulatedinthecostofrelatedassets.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesarerecognizedinprofitorlossasincurred,exceptthoseinthecostsoftherelatedassetasrequired.Afterthecommencementdateofthelease,theGroupincreasesthecarryingamountoftheleaseliabilitywhenitrecognizesinterestandreducesthecarryingamountoftheleaseliabilitywhenitpaystheleasepayment.Afteraleasetermcommences,whenthereisachangeintheamountofin-substancefixedleasepayments,achangeintheamountsexpectedtobepayableunderaresidualvalueguarantee,achangeinfutureleasepaymentsresultingfromachangeinanindexorarateusedtodeterminethosepayments,achangeinassessmentofanoptiontopurchasetheunderlyingasset,reneworterminatethelease,orchangeintheactualexerciseofanoption,theGroupremeasuresthecarryingamountoftheleaseliabilitybydiscountingtherevisedleasepayments.
(3)Short-termleasesandleasesoflow-valueassetsTheGroupconsidersaleasethat,atthecommencementdateofthelease,hasaleasetermof12monthsorless,anddoesnotcontainanypurchaseoptionasashort-termlease;andaleaseforwhichthevalueoftheindividualunderlyingassetisnotmorethanRMB40,000orUSD5,000whenitisnewasaleaseoflow-valueassets.IftheGroupsubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.TheGrouphaschosentorecognizeright-of-useassetsandleaseliabilitiesforbothshort-termleasesandlow-valueassetleases.
30.Othersignificantaccountingpoliciesandaccountingestimates
Thepreparationofthefinancialstatementsrequiresmanagementtomakejudgments,estimatesandassumptionsthataffectthereportedamountsofrevenue,expenses,assetsandliabilities,andtheiraccompanyingdisclosures,andthedisclosureofcontingentliabilitiesatthebalancesheetdate.Uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountsoftheassetsorliabilitiesaffectedinthefuture.JudgmentsIntheprocessofapplyingtheGroup’saccountingpolicies,managementhasmadethefollowingjudgmentswhichhavethemostsignificanteffectontheamountsrecognizedintheconsolidatedfinancialstatements:
BusinessmodelTheclassificationoffinancialassetsatinitialrecognitiondependsontheGroup’sbusinessmodelformanagingfinancialassets.FactorsconsideredbytheGroupinjudgingthebusinessmodelincludeenterpriseevaluation,themethodofreportingtheresultsoffinancialassetstokeymanagementmembers,therisksaffectingtheresultsoffinancialassetsandthemethodformanagingsuchrisks,aswellastheformofremunerationreceivedbythemanagementpersonnelofthebusinessesconcerned.Inassessingwhetherthebusinessmodelisaimedatreceivingcontractualcashflows,theGroupisrequiredtoanalyzeandexercisejudgmentinrespectofthereasons,timing,frequencyandvaluesofanydisposalspriortomaturityofthefinancialassets.Whetheracontractis,orcontains,aleaseTheGroupenteredintoaserviceagreementunderOfflineJoint-Operatedbusinessmodel.TheGroupbelievesthat,basedontheagreement,thereisanidentifiedassetandtheGroupcontrolstherighttousetheassetduringtheleaseperiod.Therefore,theserviceagreementcontainsaleaseandtheGrouptreatsitasalease.EstimationuncertaintyThekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,whichhaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthefutureaccountingperiods,aredescribedbelow.ImpairmentoffinancialinstrumentsTheGroupusestheexpectedcreditlossmodeltoassesstheimpairmentoffinancialinstruments.Theapplicationoftheexpectedcreditlossmodelrequiressignificantjudgmentsandestimatesandconsiderationofallreasonableandsupportableinformation,includingforward-lookinginformation.Whenmakingsuchjudgmentsandestimates,theGroupinferstheexpectedchangesinthedebtor’screditriskbasedonhistoricalrepaymentdatacombinedwitheconomicpolicies,macroeconomicindicators,industryrisksandotherfactors.Differentestimatesmayaffecttheimpairmentprovision,andtheamountofimpairmentprovisionmademaynotequaltotheactualamountofimpairmentlossinthefuture.Impairmentofnon-currentassetsotherthanfinancialassetsTheGroupassesseswhetherthereareanyindicationsofimpairmentforallnon-currentassetsotherthanfinancialassetsatthebalancesheetdate.Othernon-currentassetsotherthanfinancialassetsaretestedforimpairmentwhenthereareindicationsthatthecarryingamountsmaynotberecoverable.Animpairmentexistswhenthecarryingamountofanassetorassetgroupexceedsitsrecoverableamount,whichisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromit.Thecalculationofthefairvaluelesscostsofdisposalisbasedonavailabledatafrombindingsalestransactionsinanarm’slengthtransactionofsimilarassetsorobservablemarketpriceslessincrementalcostsfordisposingoftheassets.Whenthecalculationsofthepresentvalueofthefuturecashflowsexpectedtobederivedfromanassetorassetgroupareundertaken,managementmustestimatetheexpectedfuturecas
hflowsfromtheassetorassetgroupandchooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.FurtherdetailsareincludedinNoteVII.44.DeferredtaxassetsDeferredtaxassetsarerecognizedforallunusedtaxlossestotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailableagainstwhichthelossescanbeutilized.Significantmanagementjudgmentisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognized,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.InventoryprovisiondeterminedonnetrealizablevalueInaccordancewiththeinventoryaccountingpolicy,theGroupmeasuresthelowerofcostandnetrealizablevalue,andmakesprovisionforinventorypricedeclinewhenthecostishigherthanthenetrealizablevalue.TheGroupre-estimatesateachbalancesheetdatewhetherthenetrealizablevalueofindividualinventoryitemsislowerthanthecostofinventory.FairvalueofwealthmanagementproductsandstructureddepositsThefairvaluemeasurementofnon-principalprotectedfloatingincomewealthmanagementproductsandstructureddepositslinkedtothespotexchangerateofEURtoUSDrequirestheGrouptoestimateprojectedfuturecashflows,creditriskvolatilityanddiscountrates,andisthereforeuncertain.ProvisionsforstorerecoveryAsthelessee,theGroupundertakestheobligationtorestoretheleasedassetstothestateagreedintheleasetermsinaccordancetheleasecontract.Themanagementestimatesprovisionsarisingfromthefulfillmentofrecoveryobligationsbasedonindustryconditionsandhistoricalexperience.Atthebalancesheetdate,managementreviewsthecarryingamountoftheprovisionsandmakesappropriateadjustmentstoreflectthecurrentbestestimates.Lessee’sincrementalborrowingrateIftheinterestrateimplicitintheleasecannotbereadilydetermined,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsdiscountedusingthelessee’sincrementalborrowingrate.Accordingtotheeconomicenvironment,theGrouptakestheobservableinterestrateasthereferencebasisfordeterminingtheincrementalborrowingrate,thenadjuststheobservableinterestratebasedonitsowncircumstances,underlyingassets,leasetermsandamountsofleaseliabilitiestodeterminetheapplicableincrementalborrowingrate.
31.Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Changesinsignificantaccountingpolicies
□Applicable?Notapplicable
(2)Changesinsignificantaccountingestimates
□Applicable?Notapplicable
(3)Itemsrelatedtoadjustmentofthefinancialstatementsasatthebeginningofthecurrentyearsincetheinitialapplicationofthenewaccountingstandardin2023
□Applicable?NotapplicableVI.Taxes
1.Majorcategoriesoftaxesandtaxrates
Category
| Category | Basis | Taxrate |
| Valueaddedtax | Differencebetweensalesamountandoutputtaxcalculatedatapplicabletaxrateafterdeductinginputtaxallowedtobededucted | 3%,6%,13%,20% |
| Excisetax | Salesoftaxableconsumergoods(advalorem) | 5% |
| Urbanmaintenanceandconstructiontax | Valueaddedtaxesandexcisetaxesactuallypaid | 5%,7% |
| Corporateincometax | Taxableincome | 15%,16.5%,17%,20%,21%,24%,25%,25.8%,28% |
| Educationalsurcharge | Valueaddedtaxesandexcisetaxesactuallypaid | 3% |
| Localeducationsurcharge | Valueaddedtaxesandexcisetaxesactuallypaid | 2% |
Disclosureofinformationontaxpayerswithdifferentcorporateincometaxrates
| Nameoftaxpayers | Incometaxrate |
| DRCorporationLimited | 25.00% |
| He’erCulture(Shenzhen)Co.,Ltd | 15.00% |
| ShenzhenDarryCommercialManagementServicesCo.,Ltd | 15.00% |
| ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd | 15.00% |
| DRGroupCompanyLimited | 16.50% |
| DARRYJEWELRY(HK)LIMITED | 16.50% |
| CoupleOnlyJewelryHongKongCompanyLimited | 16.50% |
| LOVEMONTHONGKONGLIMITED | 16.50% |
| DRLUXURY(SG)PTE.LTD | 17.00% |
| DRLUXURYUSAINC | 21.00% |
| LOVEMONT(MALAYSIA)SDN.BHD | 24.00% |
| ShanghaiDarryDiamondCo.,Ltd | 25.00% |
| HaoduoDiamond(Shenzhen)Co.,Ltd | 25.00% |
| DRLuxuryNLHoldingB.V. | 25.80% |
| DRJewelry | 28.00% |
| OthersubsidiariesoftheGroupincorporatedinChinesemainland | 20.00% |
2.Taxbenefits
(1)IncometaxbenefitsAccordingtotheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonExtendingthePreferentialPoliciesforEnterpriseIncomeTaxintheShenzhenQianhaiShenzhen-HongKongModernServiceIndustryCooperationZone(CaiShui[2021]No.30),from1January2021to31December2025,theenterpriseincometaxpolicyoftheShenzhenQianhaiShenzhen-HongKongModernServiceIndustryCooperationZonewillbecontinued,andeligibleenterpriseslocatedintheQianhaiShenzhen-HongKongModernServiceIndustryCooperationZonewillbesubjecttoenterpriseincometaxatareducedrateof15%.ShenzhenDarryCommercialManagementServiceCo.,Ltd.andHe’erCulture(Shenzhen)Co.,Ltd.,subsidiariesoftheCompany,areestablishedintheQianhaiShenzhen-HongKongModernServiceIndustryCooperationZone,andwillbesubjecttocorporateincometaxatareducedrateof15%in2023.AccordingtotheprovisionsoftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd.(hereinafterreferredtoas“LoveOnlyAI”),asubsidiaryoftheCompany,obtainedthequalificationofhigh-techenterpriseon16October2023,whichisvalidforthreeyears,andcanenjoyapreferentialincometaxrateof15%forhigh-techenterprisesfrom2023to2025.In2023,wewilllevycorporateincometaxatarateof15%.AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonthePreferentialIncomeTaxPolicyforSmallandMicroEnterprisesandIndividualIndustrialandCommercialEnterprises(No.6of2023),from1January2023to31December2027,theannualtaxableincomeofsmallandmicro-profitenterprisesdoesnotexceedRMB1million,onthebasisofthepreferentialpoliciesstipulatedinArticle2oftheAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherImplementationofthePreferentialIncomeTaxPolicyforSmallandMicroEnterprises(CaiShui[2022]No.1
3),corporateincometaxwillbereducedbyhalf.SomesubsidiariesoftheCompanywillmeettheconditionsofsmallandmicro-profitenterprisesin2023andapplythecorrespondingpreferentialpoliciesontheirown.
(2)VATtaxbenefitsAccordingtotheNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsandtheStateAdministrationofTaxationonAdjustingtheRelevantTaxPoliciesoftheDiamondandShanghaiDiamondExchange(CaiShui[2006]No.65),polisheddiamondsimportedthroughthecustomsdeclarationofthecompetentcustomsoftheDiamondExchangeshallbeleviedandrefundedimmediatelyiftheactualVATburdenexceeds4%attheimportstage.ShanghaiDarryDiamondCo.,Ltd.(hereinafterreferredtoas“ShanghaiDarry”),asubsidiaryoftheCompany,hasthemembershipoftheShanghaiDiamondExchangeandenjoysthetaxtreatmentofimmediaterefundforthepartoftheactualVATburdenintheimportprocessexceeding4%.AccordingtotheAnnouncementoftheStateAdministrationofTaxationonTaxCollectionandAdministrationMattersRelatingtoVATReliefandOtherPoliciesforSmall-scaleVATTaxpayers(SATAnnouncementNo.1[2023]),small-scaletaxpayerswhoengageinVATtaxablesalesandtheirtotalmonthlysalesdonotexceedRMB100,000(orRMB300,000ifonequarterisataxperiod)areexemptedfromVAT.AccordingtotheAnn
ouncementoftheStateAdministrationofTaxationoftheMinistryofFinanceonVATReliefPoliciesforSmall-scaleVATTaxpayers(AnnouncementNo.19of2023oftheStateAdministrationofTaxationoftheMinistryofFinance),small-scaleVATtaxpayerswithmonthlysalesoflessthanRMB100,000(inclusive)areexemptedfromVAT;forsmall-scaleVATtaxpayerssubjecttotaxablesalesincomeatalevyrateof3%,theVATatalevyrateof1%willbereduced;foritemssubjecttoa3%pre-levyrate,theprepaymentVATatapre-levyrateof1%willbereduced.SomeoftheCompany’sbranchesaresmall-scaletaxpayersandmeettheabovestandards,andwillbeexemptfromVATin2023.
(3)AdditionaltaxincentivesAccordingtotheAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherImplementingthe“SixTaxesandTwoFees”ReductionandReductionPolicyforSmallandMicroEnterprises(AnnouncementNo.10of2022oftheStateAdministrationofTaxationoftheMinistryofFinance),thepeople’sgovernmentsofprovinces,autonomousregionsandmunicipalitiesdirectlyundertheCentralGovernmentcandeterminethatsmall-scaletaxtaxpayersofvalue-addedtax,smallandmicro-profitenterprisesandindividualindustrialandcommercialenterprisesmayreduceresourcetax,urbanmaintenanceandconstructiontax,realestatetax,urbanlandusetax,stamptax(excludingsecuritiestransactionstamptax),farmlandoccupationtax,educationsurcharge,andlocaleducationsurchargewithina50%taxamountrange.In2023,someoftheCompany’sbranchesaresmallandmicro-profitenterprises,andsomeoftheCompany’sbranchesaresmall-scaletaxpayersandmeettheabovestandards,socorrespondingpreferentialpoliciesforreductionandexemptionwillbeapplied.AccordingtotheCircularoftheMinistryofFinanceandtheStateAdministrationofTaxationonExpandingtheScopeofExemptionforRelevantGovernmentFunds(CaiShui[2016]No.12),thescopeofeducationfeesurcharge,localeducationsurchargeandwaterconservancyconstructionfundwillbeexemptedbytheobligorwhosemonthlysalesorturnovercurrentlytaxedmonthlydoesnotexceedRMB30,000(quarterlysalesorturnoverthatpaysquarterlytaxdoesnotexceedRMB90,000).ExtendedtopayerswhosemonthlysalesorturnoverformonthlytaxdoesnotexceedRMB100,000(quarterlysalesorturnoverforquarterlytaxdoesnotexceedRMB300,000).SomebranchesoftheCompanymeettheabovestandardsandwillbeexemptedfromeducationsurcharge,localeducationsurchargeandwaterconservancyconstructionfundsin2023.
3.OthersVII.Notestotheconsolidatedfinancialstatements
1.Currencyfunds
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance |
| Cashonhand | 434,213.76 | 391,749.23 |
| Cashatbanks | 224,395,861.65 | 513,078,584.94 |
| Others | 3,024,147.76 | 8,434,484.13 |
| Total | 227,854,223.17 | 521,904,818.30 |
| Including:Totalamountsdepositedoverseas | 7,753,196.85 | 4,313,836.35 |
Otherdescriptions:
(1)TheGroup'sothercurrencyfundsmainlyincludedaccountbalancesonthird-partypaymentplatformssuchasWeChatpayandAlipay.
(2)Asat31December2023,theGroup’srestrictedcurrencyfundstotaledRMB890,612.21(31December2022:RMB279,787.68),whichwasmainlyduetopreservationoflawissue（Asatthereportingdate,thepaymenthasbeenmade）orchangeofaccounttypes.
(3)TheGroupobtainsinterestincomeonitsbankdepositsattheinterestratefordemanddeposits.
2.Financialassetsheldfortrading
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance |
| Financialassetsatfairvaluethroughprofitorloss | 4,841,946,705.07 | 5,609,891,931.68 |
| Including: | ||
| Structureddeposits | 445,437,534.25 | 330,189,591.78 |
| Wealthmanagementproducts | 4,396,509,170.82 | 5,279,702,339.90 |
| Including: | ||
| Total | 4,841,946,705.07 | 5,609,891,931.68 |
Otherdescriptions:
(1)ThestructureddepositsarecapitalprotectedfloatingincomebankstructureddepositinvestmentslinkedtotheCSI500index,CSI300indexandthespotexchangerateoftheeuroagainsttheUSdollar.
(2)Thewealthmanagementproductsarecapitalprotectedandnon-capitalprotectedfloatingincomewealthmanagementproducts.
3.Accountsreceivable
(1)Disclosedbyaging
Currency:RenminbiYuan
| Aging | Closingoutstandingbalance | Openingoutstandingbalance |
| Within1year,inclusive | 85,531,799.66 | 87,167,396.78 |
| 1to2years | 659,976.99 | 2,359,626.25 |
| Total | 86,191,776.65 | 89,527,023.03 |
(2)Disclosedbymethodofdeterminingprovisionforcreditlosses
Currency:RenminbiYuan
| Category | Closingbalance | Openingbalance | ||||||||
| Outstandingbalance | Provisionforbaddebts | Carryingamount | Outstandingbalance | Provisionforbaddebts | Carryingamount | |||||
| Amount | Percentage | Amount | Provisionratio | Amount | Percentage | Amount | Provisionratio | |||
| Accounts | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 1,476, | 1.65% | 1,476, | 100.0 | 0.00 |
receivableforwhichprovisionforbaddebtsisindividuallyassessed
| receivableforwhichprovisionforbaddebtsisindividuallyassessed | 671.46 | 671.46 | 0% | |||||||
| Including: | ||||||||||
| MallA | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 1,476,671.46 | 1.65% | 1,476,671.46 | 100.00% | 0.00 |
| Accountsreceivableforwhichprovisionforbaddebtsiscollectivelyassessed | 86,191,776.65 | 100.00% | 3,044,377.59 | 3.53% | 83,147,399.06 | 88,050,351.57 | 98.35% | 3,571,440.05 | 4.06% | 84,478,911.52 |
| Including: | ||||||||||
| AccountsreceivablefromPOSmachinesande-commerceplatforms | 29,797,960.89 | 34.57% | 0.00 | 0.00% | 29,797,960.89 | 22,630,287.88 | 25.28% | 0.00 | 0.00% | 22,630,287.88 |
| Accountsreceivablefromshoppingmalls | 56,393,815.76 | 65.43% | 3,044,377.59 | 5.40% | 53,349,438.17 | 65,420,063.69 | 73.07% | 3,571,440.05 | 5.46% | 61,848,623.64 |
| Total | 86,191,776.65 | 100.00% | 3,044,377.59 | 3.53% | 83,147,399.06 | 89,527,023.03 | 100.00% | 5,048,111.51 | 5.64% | 84,478,911.52 |
Impairmentallowancewhichisindividuallyassessed:0
Currency:RenminbiYuan
Name
| Name | Openingbalance | Closingbalance | ||||
| Outstandingbalance | Impairmentallowance | Outstandingbalance | Impairmentallowance | Percentage | Reasonsforprovision | |
| MallA | 1,476,671.46 | 1,476,671.46 | 0.00 | 0.00 | 0.00% | |
| Total | 1,476,671.46 | 1,476,671.46 | 0.00 | 0.00 | ||
Impairmentallowancewhichiscollectivelyassessed:3,044,377.59
Currency:RenminbiYuan
| Name | Closingbalance | ||
| Outstandingbalance | Impairmentallowance | Percentage | |
| AccountsreceivablefromPOSmachinesande-commerceplatforms | 29,797,960.89 | 0.00 | 0.00% |
| Accountsreceivablefromshoppingmalls | 56,393,815.76 | 3,044,377.59 | 5.40% |
| Total | 86,191,776.65 | 3,044,377.59 | |
Descriptionofthebasisfordeterminingthecombination:
ImpairmentallowancewhichisassessedbythecombinationofcreditriskcharacteristicsIftheGrouprecognizesimpairmentallowancebasedonthegeneralmodelofECLs:
□Applicable?Notapplicable
(3)Impairmentallowancerecognized,recoveredorreversedforthecurrentperiodImpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
| Category | Openingbalance | Changesfortheperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Write-offs | Others | |||
| Accountsreceivablefromshoppingmalls | 5,048,111.51 | 2,997,697.80 | 5,003,734.03 | 0.00 | 2,302.31 | 3,044,377.59 |
| Total | 5,048,111.51 | 2,997,697.80 | 5,003,734.03 | 0.00 | 2,302.31 | 3,044,377.59 |
Including:significantrecoveryorreversalofimpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
Nameofentity
| Nameofentity | Amountrecoveredorreversed | Reasonsforreversal | Methodsforreversal | Thebasisandrationalityofdeterminingtheratiofororiginalimpairmentallowance |
| MallA | 1,476,671.46 | Notapplicable | Currencyrecovery | Itisnotexpectedtoberecoveredbecausethemallhasbeeninarrearsforalongtime. |
| Total | 1,476,671.46 |
(4)Thetop5largestaccountsreceivableandcontractassetsatendofyearcategorizedbydebtor
Currency:RenminbiYuan
| Nameofentity | Closingbalanceoftradereceivables | Closingbalanceofcontractassets | Closingbalanceofaccountsreceivableandcontractassets | Proportionoftotalclosingbalanceofaccountsreceivableandcontractassets | Closingbalanceofimpairmentofaccountsreceivableandcontractassets |
| No.1 | 12,540,139.89 | 0.00 | 12,540,139.89 | 14.55% | 0.00 |
| No.2 | 5,483,230.73 | 0.00 | 5,483,230.73 | 6.36% | 0.00 |
| No.3 | 4,261,580.43 | 0.00 | 4,261,580.43 | 4.94% | 0.00 |
| No.4 | 2,736,504.30 | 0.00 | 2,736,504.30 | 3.17% | 147,728.12 |
| No.5 | 2,469,627.90 | 0.00 | 2,469,627.90 | 2.87% | 133,321.00 |
| Total | 27,491,083.25 | 0.00 | 27,491,083.25 | 31.89% | 281,049.12 |
4.Otherreceivables
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Otherreceivables | 5,614,656.53 | 8,184,551.61 |
| Total | 5,614,656.53 | 8,184,551.61 |
(1)Otherreceivables
1)Otherreceivablescategorizedbynature
Currency:RenminbiYuan
| Nature | Closingoutstandingbalance | Openingoutstandingbalance |
| Socialinsurancesandhousingfundbornebyemployees | 4,485,068.29 | 5,805,962.39 |
| Temporaryloansforemployees | 327,705.15 | 1,365,064.13 |
Others
| Others | 2,706,883.09 | 2,918,525.09 |
| Total | 7,519,656.53 | 10,089,551.61 |
2)Disclosedbyaging
Currency:RenminbiYuan
| Aging | Closingoutstandingbalance | Openingoutstandingbalance |
| Within1year,inclusive | 5,614,656.53 | 8,184,551.61 |
| 1to2years | 1,905,000.00 | |
| 2to3years | 1,905,000.00 | |
| Total | 7,519,656.53 | 10,089,551.61 |
3)Disclosedbymethodofdeterminingprovisionforcreditlosses
?Applicable□Notapplicable
Currency:RenminbiYuan
| Category | Closingbalance | Openingbalance | ||||||||
| Outstandingbalance | Provisionforbaddebts | Carryingamount | Outstandingbalance | Provisionforbaddebts | Carryingamount | |||||
| Amount | Percentage | Amount | Provisionratio | Amount | Percentage | Amount | Provisionratio | |||
| Accountsreceivableforwhichprovisionforbaddebtsisindividuallyassessed | 1,905,000.00 | 25.33% | 1,905,000.00 | 100.00% | 0.00 | 1,905,000.00 | 18.88% | 1,905,000.00 | 100.00% | 0.00 |
| Including: | ||||||||||
| Provisionforbaddebtswhichisassessedonaportfoli | 5,614,656.53 | 74.67% | 0.00 | 0.00% | 5,614,656.53 | 8,184,551.61 | 81.12% | 0.00 | 0.00% | 8,184,551.61 |
obasis
| obasis | ||||||||||
| Including: | ||||||||||
| Total | 7,519,656.53 | 100.00% | 1,905,000.00 | 25.33% | 5,614,656.53 | 10,089,551.61 | 100.00% | 1,905,000.00 | 18.88% | 8,184,551.61 |
Impairmentallowancewhichisindividuallyassessed:
Currency:RenminbiYuan
| Name | Openingbalance | Closingbalance | ||||
| Outstandingbalance | Provisionforbaddebts | Outstandingbalance | Provisionforbaddebts | Provisionratio | Reasonsforprovision | |
| CompanyA | 1,905,000.00 | 1,905,000.00 | 1,905,000.00 | 1,905,000.00 | 100.00% | Itisnotexpectedtoberecoveredduetodeterioratingoperationconditionofthecounterparty. |
IftheGrouprecognizesbaddebtprovisionbasedongeneralECLmodel:
Currency:RenminbiYuan
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| 12-Monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(Non-credit-impaired) | Lifetimeexpectedcreditlosses(Credit-impaired) | ||
| Balanceat1January2023 | 1,905,000.00 | 1,905,000.00 | ||
| Balanceat1January2023providedinthecurrentperiod | ||||
| Balanceat31December2023 | 1,905,000.00 | 1,905,000.00 |
BasisforthedivisionofeachstageandprovisionratioforimpairmentallowanceChangesinoutstandingbalancewithsignificantchangesintheamountoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
4)Impairmentallowancerecognized,recoveredorreversedforthecurrentperiod
Impairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
Category
| Category | Openingbalance | Changesfortheperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Transferorwrite-off | Others | |||
| Impairmentallowanceforotherreceivables | 1,905,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,905,000.00 |
| Total | 1,905,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,905,000.00 |
Including:significantreversalorrecoveryofimpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
| Nameofentity | Recoveryorreversal | Reasonsforreversal | Methodsforrecovery | Thebasisandrationalityofdeterminingtheratiofororiginalimpairmentallowance |
5)Thetop5largestotherreceivablesattheendoftheyearcategorizedbydebtor
Currency:RenminbiYuan
| Nameofentity | Natureofotherreceivables | Closingbalance | Aging | Proportionoftotalclosingbalanceofotherreceivables | Closingbalanceofimpairmentallowance |
| No.1 | Paymentsforfixedassets | 1,905,000.00 | Over1years | 25.33% | 1,905,000.00 |
| No.2 | Temporaryloansforemployees | 200,000.00 | Within1year | 2.66% | 0.00 |
| No.3 | Temporaryloansforemployees | 33,002.50 | Within1year | 0.44% | 0.00 |
| No.4 | Temporaryloansforemployees | 22,854.58 | Within1year | 0.30% | 0.00 |
| No.5 | Temporaryloansforemployees | 20,000.00 | Within1year | 0.27% | 0.00 |
Total
| Total | 2,180,857.08 | 29.00% | 1,905,000.00 |
5.Prepayments
(1)Prepaymentspresentedbyaging
Currency:RenminbiYuan
| Aging | Closingbalance | Openingbalance | ||
| Amount | Percentage | Amount | Percentage | |
| Within1year | 33,060,094.20 | 95.21% | 74,104,582.84 | 99.84% |
| 1to2years | 1,664,057.89 | 4.79% | 121,851.31 | 0.16% |
| Total | 34,724,152.09 | 74,226,434.15 | ||
Descriptionofthereasonwhysignificantprepaymentsagedoveroneyearwerenotsettledintime:
Asat31December2023,theGrouphadnosignificantprepaymentsagedoveroneyear(31December2022:nil).
(2)Thetop5largestprepaymentsatendofyearcategorizedbyreceivers
| Nameofentity | Closingbalance | Proportionoftotalclosingbalanceofprepayments | Remarks |
| No.1 | 1,856,560.99 | 5.35% | Consultancyfees |
| No.2 | 1,300,800.46 | 3.75% | Promotionfees |
| No.3 | 1,035,000.00 | 2.98% | Designfees |
| No.4 | 807,435.66 | 2.33% | Promotionfees |
| No.5 | 807,318.97 | 2.32% | Promotionfees |
| Total | 5,807,116.08 | 16.73% |
6.Inventories
WeathertheCompanyhasfollowedthedisclosurerequirementstorealestateindustryNo
(1)Categoryofinventories
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance | ||||
| Outstandingbalance | Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecosts | Carryingamount | Outstandingbalance | Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecosts | Carryingamount | |
| Rawmaterials | 126,507,534.93 | 126,507,534.93 | 134,671,437.41 | 134,671,437.41 | ||
| Goodsonhand | 392,190,024.81 | 10,237,764.15 | 381,952,260.66 | 516,044,105.23 | 6,528,401.70 | 509,515,703.53 |
Turnovermaterials
| Turnovermaterials | 2,713,164.17 | 2,713,164.17 | 5,183,351.50 | 5,183,351.50 | ||
| Goodsupondelivery | 318,575.15 | 318,575.15 | 1,209,323.01 | 1,209,323.01 | ||
| Semi-finishedproducts | 4,015,757.66 | 4,015,757.66 | 2,824,345.36 | 2,824,345.36 | ||
| Outsourcedprocessingmaterials | 11,431,751.80 | 11,431,751.80 | 16,482,477.19 | 16,482,477.19 | ||
| Total | 537,176,808.52 | 10,237,764.15 | 526,939,044.37 | 676,415,039.70 | 6,528,401.70 | 669,886,638.00 |
TheCompanyshouldcomplywiththedisclosurerequirementsabout“Jewelryrelatedbusiness“intheShenzhenStockExchangeforSelf-regulationofListedCompaniesNo.3–Industry-specificInformationDisclosure
Distributionofinventoriesattheendofreportingperiod
Currency:RMB10thousandYuan
| Item | Closingoutstandingbalanceofinventories | ||||||
| Semi-finishedproducts | Goodsonhand | Outsourcedprocessingmaterials | Rawmaterials | Turnovermaterials | Goodsupondelivery | Total | |
| Karatgoldjewelry | 348.23 | 37,178.30 | 43.76 | - | - | 23.63 | 37,593.92 |
| Platinumjewelry | 44.18 | 946.15 | 3.81 | - | - | 8.01 | 1,002.15 |
| Goldjewelry | - | 986.01 | 0.27 | - | - | 0.22 | 986.50 |
| Diamond | - | - | 1,095.11 | 12,618.41 | - | - | 13,713.52 |
| Turnovermaterials | - | - | - | - | 271.32 | - | 271.32 |
| Others | 9.16 | 108.54 | 0.23 | 32.34 | - | - | 150.27 |
| Total | 401.57 | 39,219.00 | 1,143.18 | 12,650.75 | 271.32 | 31.86 | 53,717.68 |
(2)Provisionfordeclineinvalueofinventoriesandimpairmentprovisionforcontractperformancecos
ts
Currency:RenminbiYuan
Item
| Item | Openingbalance | Increase | Decrease | Closingbalance | ||
| Provision | Other | Reversalorwrite-off | Other | |||
| Goodsonhand | 6,528,401.70 | 12,880,040.30 | 9,170,677.85 | 10,237,764.15 | ||
| Total | 6,528,401.70 | 12,880,040.30 | 9,170,677.85 | 10,237,764.15 | ||
Provisionfordeclineinvalueofinventorieswhichisassessedonaportfoliobasis
Currency:RenminbiYuan
| Name | Atendofperiod | Atbeginningofperiod | ||||
| Closingbalance | Provisionfordeclineinvalue | Provisionratiofordeclineinvalue | Openingbalance | Provisionfordeclineinvalue | Provisionratiofordeclineinvalue | |
| Goodsonhand | 392,190,024.81 | 10,237,764.15 | 2.61% | 516,044,105.23 | 6,528,401.70 | 1.27% |
| Total | 392,190,024.81 | 10,237,764.15 | 2.61% | 516,044,105.23 | 6,528,401.70 | 1.27% |
ThestandardofprovisionfordeclineinvalueofinventorieswhichisassessedonaportfoliobasisNetrealizablevalueofinventoriesistheestimatedsellingpriceofinventorieslessfurtherprocessingcosts,expectedsellingexpensesandrelatedtaxes.Thereasonforwrite-offoftheprovisionfordeclineinvalueofgoodsonhandisthatinventorieshavebeensoldordisposalofrelevantwrite-offoftheprovisionfordeclineinvalueofinventories.
7.Currentportionofnon-currentassets
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Debtinvestmentsduewithinoneyear | 390,061,500.32 | 66,085,379.00 |
| Otherdebtinvestmentsduewithinoneyear | 0.00 | 0.00 |
| Deposits | 63,410,461.50 | 41,240,679.30 |
| Baddebtprovisionforcurrentportionofnon-currentassets | -6,868,997.72 | -358,191.14 |
| Total | 446,602,964.10 | 106,967,867.16 |
(1)Debtinvestmentsduewithinoneyear
?Applicable□Notapplicable
1)Debtinvestmentsduewithinoneyear
Currency:RenminbiYuan
Name
| Name | Closingbalance | Openingbalance | ||||
| Outstandingbalance | Provisionforimpairment | Carryingamount | Outstandingbalance | Provisionforimpairment | Carryingamount | |
| Certificateofdepositwithamaturityofmorethanoneyearandduewithinoneyear | 390,061,500.32 | 0.00 | 390,061,500.32 | 66,085,379.00 | 0.00 | 66,085,379.00 |
| Total | 390,061,500.32 | 0.00 | 390,061,500.32 | 66,085,379.00 | 0.00 | 66,085,379.00 |
Changesinimpairmentprovisionforthecurrentperiodfordebtinvestmentsduewithinoneyear
Currency:RenminbiYuan
| Item | Openingbalance | Increase | Decrease | Closingbalance |
2)Importantdebtinvestmentsduewithinoneyearatendofperiod
Currency:RenminbiYuan
| Item | Parvalue | Couponrate | Maturitydate | Effectiveinterestrate | Overdueprincipal | ||
| Closingbalance | Openingbalance | Closingbalance | Openingbalance | ||||
| CertificateofdepositofBankofNingbo | 90,000,000.00 | 3.55% | 3December2024 | 3.42% | 0.00 | 0.00 | |
| CorporatecertificateofdepositofChinaMinshengBank | 50,000,000.00 | 3.65% | 07February2024 | 3.65% | 0.00 | 0.00 | |
| CorporatecertificateofdepositofChinaMinshengB | 50,000,000.00 | 3.65% | 19February2024 | 3.65% | 0.00 | 0.00 | |
ank
| ank | |||||||
| CertificateofdepositofPingAnBank | 50,000,000.00 | 3.65% | 20February2024 | 3.65% | 0.00 | 0.00 | |
| Total | 240,000,000.00 |
8.Othercurrentassets
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Returncostofreceivable | 151,973.99 | 272,853.07 |
| Wealthmanagementproducts | 85,819,724.44 | 31,378,714.16 |
| Prepaidincometax | 7,032,156.60 | 23,359,776.18 |
| InputVATtobecertified,deducted,andretained | 31,107,132.76 | 15,125,504.86 |
| Expensestobeamortized | 7,873,063.00 | 3,318,077.34 |
| Total | 131,984,050.79 | 73,454,925.61 |
Otherdescriptions:
9.Debtinvestments
(1)Detailsofdebtinvestments
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance | ||||
| Outstandingbalance | Provisionforimpairment | Carryingamount | Outstandingbalance | Provisionforimpairment | Carryingamount | |
| Certificateofdepositwithamaturityofmorethanoneyear | 891,976,307.01 | 0.00 | 891,976,307.011 | 794,553,996.36 | 794,553,996.36 | |
| Total | 891,976,307.01 | 0.00 | 891,976,307.01 | 794,553,996.36 | 794,553,996.36 | |
AsofDecember31,2023,thebalanceofbookdebtsinvestmentsmainlyconsistedoflargecertificatesofdepositwithamaturityperiodofmorethanoneyearacquiredbytheGroup,withmaturitydatesrangingfromFebruary2025toMarch2026,anddepositinterestratesrangingfrom3.10%to3.55%(December31,2022:
maturitydatesrangingfromFebruary2024toOctober2027,anddepositinterestratesrangingfrom3.30%to4.05%)
(2)Importantdebtinvestmentsatendofperiod
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance | ||||||||
| Parvalue | Couponrate | Effectiveinterestrate | Maturitydate | Overdueprincipal | Parvalue | Couponrate | Effectiveinterestrate | Maturitydate | Overdueprincipal | |
| CertificateofdepositofBankofDongguan | 100,000,000.00 | 3.55% | 3.55% | 8November2025 | 100,000,000.00 | 3.55% | 3.55% | 8November2025 | 0.00 | |
| CertificateofdepositofChinaMinshengBank | 100,000,000.00 | 3.30% | 3.30% | 06February2026 | ||||||
| CertificateofdepositofChinaCITICBank | 200,000,000.00 | 3.30% | 3.30% | 1March2026 | ||||||
| TimedepositsofChinaEverbrightBank | 150,000,000.00 | 3.25% | 3.25% | 14March2026 | ||||||
| Total | 550,000,000.00 | 100,000,000.00 | 0.00 | |||||||
10.Fixedassets
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance |
| Fixedassets | 12,617,322.42 | 14,068,805.09 |
| Total | 12,617,322.42 | 14,068,805.09 |
(1)Fixedassets
Currency:RenminbiYuan
| Item | Transportationequipment | Officeequipmentandothers | Total |
| I.Originalbookvalue: | |||
| 1.Openingbalance | 5,057,888.38 | 19,331,198.09 | 24,389,086.47 |
| 2.Increase | 16,433.15 | 4,611,716.20 | 4,628,149.35 |
| (1)Purchases | 16,433.15 | 4,610,381.30 | 4,626,814.45 |
| (2)Transfersfromconstructioninprogress | |||
| (3)Increasefrombusinesscombinations | |||
| Exchangedifferencesontranslationoffinancialstatementsdenominatedinforeigncurrency | 1,334.90 | 1,334.90 | |
| 3.Decrease | 359,869.85 | 359,869.85 | |
| (1)Disposalorretirement | 359,869.85 | 359,869.85 |
4.Closingbalance
| 4.Closingbalance | 5,074,321.53 | 23,583,044.44 | 28,657,365.97 |
| II.Accumulateddepreciation | |||
| 1.Openingbalance | 2,322,481.67 | 7,997,799.71 | 10,320,281.38 |
| 2.Increase | 768,004.07 | 5,240,940.31 | 6,008,944.38 |
| (1)Provision | 768,004.07 | 5,239,926.63 | 6,007,930.70 |
| Exchangedifferencesontranslationoffinancialstatementsdenominatedinforeigncurrency | 1,013.68 | 1,013.68 | |
| 3.Decrease | 289,182.21 | 289,182.21 | |
| (1)Disposalorretirement | 289,182.21 | 289,182.21 |
4.Closingbalance
| 4.Closingbalance | 3,090,485.74 | 12,949,557.81 | 16,040,043.55 |
| III.Provisionforimpairment |
1.Openingbalance
| 1.Openingbalance |
| 2.Increase |
| (1)Provision |
3.Decrease
| 3.Decrease |
| (1)Disposalorretirement |
4.Closingbalance
| 4.Closingbalance | |||
| IV.Carryingamount | |||
| 1.Closingcarryingamount | 1,983,835.79 | 10,633,486.63 | 12,617,322.42 |
| 2.Openingcarryingamount | 2,735,406.71 | 11,333,398.38 | 14,068,805.09 |
11.Right-of-useassets
(1)Right-of-useassets
Currency:RenminbiYuan
| Item | Buildings | Total |
| I.Originalbookvalue: | ||
| 1.Openingbalance | 1,050,335,607.36 | 1,050,335,607.36 |
| 2.Increase | 149,402,589.96 | 149,402,589.96 |
| (1)Increase | 148,955,722.58 | 148,955,722.58 |
| (2)Exchangedifferencesontranslationoffinancialstatementsdenominatedinforeigncurrency | 446,867.38 | 446,867.38 |
| 3.Decrease | 452,819,130.17 | 452,819,130.17 |
| (1)Disposal | 452,819,130.17 | 452,819,130.17 |
| 4.Closingbalance | 746,919,067.15 | 746,919,067.15 |
| II.Accumulateddepreciation | ||
| 1.Openingbalance | 436,053,985.67 | 436,053,985.67 |
| 2.Increase | 352,240,987.29 | 352,240,987.29 |
| (1)Provision | 351,904,368.67 | 351,904,368.67 |
| (2)Exchangedifferencesontranslationoffinancialstatementsdenominatedinforeigncurrency | 336,618.62 | 336,618.62 |
| 3.Decrease | 310,828,690.17 | 310,828,690.17 |
| (1)Disposal | 310,828,690.17 | 310,828,690.17 |
4.Closingbalance
| 4.Closingbalance | 477,466,282.79 | 477,466,282.79 |
| III.Provisionforimpairment |
1.Openingbalance
| 1.Openingbalance | 23,775,454.33 | 23,775,454.33 |
| 2.Increase | 57,013,861.16 | 57,013,861.16 |
| (1)Provision | 56,741,019.03 | 56,741,019.03 |
| (2)Exchangedifferencesontranslationoffinancialstatementsdenominatedinforeigncurrency | 272,842.13 | 272,842.13 |
| 3.Decrease | 20,308,185.79 | 20,308,185.79 |
| (1)Disposal | 20,308,185.79 | 20,308,185.79 |
4.Closingbalance
| 4.Closingbalance | 60,481,129.70 | 60,481,129.70 |
| IV.Carryingamount | ||
| 1.Closingcarryingamount | 208,971,654.66 | 208,971,654.66 |
| 2.Openingcarryingamount | 590,506,167.36 | 590,506,167.36 |
(2)Impairmenttestingofright-of-useassets
?Applicable□NotapplicableThenetrecoverableamountisdeterminedbyfairvaluelessdisposalexpenses
□Applicable?NotapplicableTherecoverableamountisdeterminedaccordingtothepresentvalueofthefuturecashflows?Applicable□Notapplicable
Currency:RenminbiYuan
| Item | Carryingamount | Recoverableamount | Impairedamount | Lengthofpredictionperiod | Keyparametersofpredictionperiod | Keyparametersofstableperiod | Basisfordeterminingkeyparametersofpredictionperiod |
| DRGuangzhouTianheCityPlazastore | 5,312,280.86 | 1,164,792.61 | 4,147,488.25 | Theearlieroftheexpirationdateoftheleasecontractandtheexpectedclosingdateofthestore | (1)Operatingincome:forecastsarebasedonthecompany'sstrategicobjectives,theexternalenvironment,consumerstimuluspoliciesintroducedbythestateandthehistoricalrevenuegrowthoftheshops;(2)Operatingcosts:calculatedbasedonhistorica | N/A | N/A |
laveragegrossmargins;
(4)Operatingexpenses:calculatedbasedonhistoricalexpensesasapercentag
eofoperatingincome.
(5)Pre-taxdiscountrate:14.4
8%
| laveragegrossmargins;(4)Operatingexpenses:calculatedbasedonhistoricalexpensesasapercentageofoperatingincome.(5)Pre-taxdiscountrate:14.48% | |||||||
| DRBeijingZhongguancunLinkShoppingCenterstore | 4,631,335.21 | 811,267.32 | 3,820,067.89 | Theearlieroftheexpirationdateoftheleasecontractandtheexpectedclosingdateofthestore | (1)Operatingincome:forecastsarebasedonthecompany'sstrategicobjectives,theexternalenvironment,consumerstimuluspoliciesintroducedbythestateandthehistoricalrevenuegrowthoftheshops;(2)Operatingcosts:calculatedbasedonhistoricalaveragegrossmargins;(3)Operatingexpenses:calculatedbasedonhistoricalexpensesasapercentageofoperatingincome.(4)Pre-taxdiscountrate:14.48% | N/A | N/A |
| DRKunmingPARK1903store | 2,812,014.82 | 0.00 | 2,812,014.82 | Theearlieroftheexpirationdateoftheleasecontractandtheexpectedclosingdateofthestore | (1)Operatingincome:forecastsarebasedonthecompany'sstrategicobjectives,theexternalenvironment,consumerstimuluspoliciesintroducedbythestateandthehistoricalrevenuegrowthoftheshops;(2)Operatingcosts:calculatedbasedonhistoricalaveragegrossmargins; | N/A | N/A |
(3)Operatingexpenses:
calculatedbasedonhistoricalexpensesasapercentageofoperatinginc
ome.
(4)Pre-taxdiscountrate:
14.48%
| (3)Operatingexpenses:calculatedbasedonhistoricalexpensesasapercentageofoperatingincome.(4)Pre-taxdiscountrate:14.48% | |||||||
| DRShanghaiGrandGatewayStore | 3,075,018.16 | 685,741.35 | 2,389,276.81 | Theearlieroftheexpirationdateoftheleasecontractandtheexpectedclosingdateofthestore | (1)Operatingincome:forecastsarebasedonthecompany'sstrategicobjectives,theexternalenvironment,consumerstimuluspoliciesintroducedbythestateandthehistoricalrevenuegrowthoftheshops;(2)Operatingcosts:calculatedbasedonhistoricalaveragegrossmargins;(3)Operatingexpenses:calculatedbasedonhistoricalexpensesasapercentageofoperatingincome.(4)Pre-taxdiscountrate:14.48% | N/A | N/A |
| Total | 15,830,649.05 | 2,661,801.28 | 13,168,847.77 |
ReasonsforclearlydifferencesbetweentheforegoinginformationandinformationorexternalinformationusedforimpairmenttestinginprioryearReasonsforclearlydifferencesbetweentheinformationusedforimpairmenttestinginprioryearbytheCompanyandactualconditionsinthatyearOtherdescriptions:
TheGroupusessinglestoresasanassetgroupandperformsimpairmenttestsoneachassetgroupwithindicatorsofimpairment.Therecoverablevalueofanassetgroupisdeterminedbasedonthepresentvalueoftheestimatedfuturecashflowsofindividualstoresovertheremainingleasetermortheestimatedoperatingperiod.Theimpairmentistheamountofcarringvaluelessingrecoverablevalue.Theaboveshowstheimpairmenttestoftheassetgroupforwhichtheamountofimpairmentissignificantinthecurrentyear,andthec
arryingvalueisthetotalamountoftheassetgroup'sright-of-useassetsandlong-termamortizationexpenses.
12.Intangibleassets
(1)Intangibleassets
Currency:RenminbiYuan
Item
| Item | Landuserights | Patents | Non-patenttechnology | Software | Trademarks | Total |
| I.Originalbookvalue: | ||||||
| 1.Openingbalance | 13,580,747.83 | 13,580,747.83 | ||||
| 2.Increase | 168,322.76 | 5,212,440.40 | 5,380,763.16 | |||
| (1)Purchases | 168,322.76 | 5,212,440.40 | 5,380,763.16 | |||
| (2)InternalR&D | ||||||
| (3)Increasefrombusinesscombinations |
3.Decrease
| 3.Decrease | 460,377.36 | 460,377.36 | ||
| (1)Disposal | 460,377.36 | 460,377.36 |
4.Closingbalance
| 4.Closingbalance | 13,288,693.23 | 5,212,440.40 | 18,501,133.63 | |
| II.Accumulatedamortization | ||||
| 1.Openingbalance | 9,318,150.07 | 9,318,150.07 | ||
| 2.Increase | 2,288,302.13 | 342,421.77 | 2,630,723.90 | |
| (1)Provision | 2,288,302.13 | 342,421.77 | 2,630,723.90 |
3.Decrease
(1)Disposal
| (1)Disposal | 56,160.38 | 56,160.38 |
4.Closingbalance
| 4.Closingbalance | 11,550,291.82 | 342,421.77 | 11,892,713.59 | |
| III.Provisionforimpairment | ||||
| 1.Openingbalance | ||||
| 2.Increase | ||||
| (1)Provision |
3.Decrease
| 3.Decrease |
| (1)Disposal |
4.Closingbalance
| 4.Closingbalance | ||||
| IV.Carryingamount | ||||
| 1.Closingcarryingamount | 1,738,401.41 | 4,870,018.63 | 6,608,420.04 | |
| 2.Openingcarryingamount | 4,262,597.76 | 4,262,597.76 |
Intangibleassetsarisingfrominternalresearchanddevelopmentattheendoftheyearaccountfor0.00%oftheintangibleassetsbalance.
13.Long-termprepaidexpenses
Currency:RenminbiYuan
| Item | Openingbalance | Increase | Amortization | Otherdecrease | Closingbalance |
| Expensesonimprovementoffixedassetsunderoperatingleases | 169,750,383.92 | 13,195,249.21 | 97,016,164.88 | 35,721,596.82 | 50,207,871.43 |
| Total | 169,750,383.92 | 13,195,249.21 | 97,016,164.88 | 35,721,596.82 | 50,207,871.43 |
Otherdescriptions:
(1)TheGroupusesasinglestoreasanassetgroup,andconductsanimpairmenttestontheassetgroupofthestoreshowinganyindicationofimpairment.Therecoverableamountoftheassetgroupisdeterminedaccordingtothepresentvalueoftheestimatedfuturecashflow.ThedetailsaredisclosedinnotesVll.11intheconsolidatedfnancialstatements.
(2)Accordingtotheresultofimpairmenttest,thecarryingamountofsomestoreassetgroupsislowerthantherecoverableamount,andthecorrespondingprovisionforimpairmentoflong-termprepaidexpensesisRMB35,721,596.82.
14.Deferredtaxassets/deferredtaxliabilities
(1)Deferredtaxassetsbeforeoffsetting
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
| Provisionforassetimpairment | 111,821,826.34 | 26,138,406.75 | 40,067,827.14 | 10,003,234.08 |
| Unrealizedprofitoninter-companytransactions | 3,658,302.65 | 914,575.66 | 7,326,359.23 | 1,831,589.81 |
| Deductiblelosses | 54,919,145.86 | 8,733,943.91 | 7,400,282.50 | 895,178.30 |
| Provisionforstorerestorationobligations | 10,493,433.70 | 2,623,358.43 | 8,561,231.41 | 2,140,307.85 |
| Differencebetweentaxandaccountingofleaseliability | 256,182,711.66 | 58,796,450.30 | 582,115,033.63 | 144,045,844.11 |
| Total | 437,075,420.21 | 97,206,735.05 | 645,470,733.91 | 158,916,154.15 |
(2)Deferredtaxliabilitiesbeforeoffsetting
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance | ||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
| Changesinfairvalueoffinancialassets | 94,022,539.08 | 23,211,068.90 | 62,891,931.68 | 15,568,533.63 |
| Accruedinterestoncertificatesofdeposit | 55,022,301.44 | 13,112,046.59 | 21,709,575.40 | 5,402,625.35 |
| Differencebetweentaxandaccountingofright-of-useassets | 269,452,784.36 | 60,229,762.03 | 560,020,830.90 | 138,506,777.20 |
| Total | 418,497,624.88 | 96,552,877.52 | 644,622,337.98 | 159,477,936.18 |
(3)Deferredtaxassetsorliabilitiesshowninthenetamountafteroffsetting
Currency:RenminbiYuan
| Item | Theoffsetamountofdeferredtaxassetsandliabilitiesatendofperiod | Closingbalanceofdeferredtaxassetsorliabilitiesafteroffsetting | Theoffsetamountofdeferredtaxassetsandliabilitiesatbeginningofperiod | Openingbalanceofdeferredtaxassetsorliabilitiesafteroffsetting |
| Deferredtaxassets | 81,912,884.11 | 15,293,850.94 | 150,724,937.79 | 8,191,216.36 |
| Deferredtaxliabilities | 81,912,884.11 | 14,639,993.41 | 150,724,937.79 | 8,752,998.39 |
(4)DetailsoftheGroup'sunrecognizeddeferredtaxassets
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Deductiblelosses | 190,916,873.26 | 31,521,098.68 |
| Unrecognizedprovisionforimpairment | 134,635.01 | 10,423,943.75 |
| Total | 191,051,508.27 | 41,945,042.43 |
(5)Deductiblelossesonunrecognizeddeferredtaxassetswillbecomedueinthefollowingyears
Currency:RenminbiYuan
Year
| Year | Closingbalance | Openingbalance | Remarks |
| 2023 | 0.00 | 0.00 | |
| 2024 | 0.00 | 100,839.02 | |
| 2025 | 1,207,915.36 | 1,930,613.69 | |
| 2026 | 2,014,907.27 | 2,500,649.53 | |
| 2027 | 1,479,152.70 | 2,508,965.13 | |
| 2028 | 159,995,313.06 | 0.00 | |
| Infinity | 26,219,584.86 | 24,480,031.31 | |
| Total | 190,916,873.26 | 31,521,098.68 |
Otherdescriptions:
DRJewelry,asubsidiaryestablishedinFrance,incurredacumulativelossofRMB26,219,584.87on31December2023(thecumulativelossincurredon31December2022wasRMB24,480,031.31),whichcanbemadeupindefinitelyinthefuture.Asat31December2023,thedeductibletaxlossesthatwerenotrecognizedbyDRCorporationLimitedasdeferredtaxassetswereRMB154,330,960.63(31December2022:Nil),whichwillexpirein2028.TheGroupcalculatesandrecognizesdeferredtaxassetsarisingfromdeductibletemporarydifferencesattheapplicabletaxratefortheperiodinwhichtheassetisexpectedtoberecoveredortheliabilityisliquidated,uptothetaxableincomethatislikelytobeacquiredinfutureperiodstooffsetdeductibletemporarydifferencesanddeductiblelosses.
15.Othernon-currentassets
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance | ||||
| Outstandingbalance | Provisionforimpairment | Carryingamount | Outstandingbalance | Provisionforimpairment | Carryingamount | |
| Deposit | 45,593,685.77 | 45,593,685.77 | 85,069,135.39 | 85,069,135.39 | ||
| Employeeborrowing | 350,000.00 | 350,000.00 | ||||
| Total | 45,593,685.77 | 45,593,685.77 | 85,419,135.39 | 85,419,135.39 | ||
Otherdescriptions:
Asat31December2023,theGroupassessedtheexpectedcreditlossratioaslowbasedonhistoricallossratesandforward-lookingmacroeconomicdata.
16.Assetswithrestrictedownershiporrightofuse
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance | ||||||
| Outstandingbalance | Carryingamount | Restrictedtype | Restrictions | Outstandingbalance | Carryingamount | Restrictedtype | Restrictions | |
| Currencyfunds | 890,612.21 | 890,612.21 | frozen | 279,787.68 | 279,787.68 | frozen | Nofeedbackonbankreconciliationresults,miscalculationofbanks,etc. | |
| Total | 890,612.21 | 890,612.21 | 279,787.68 | 279,787.68 | ||||
Otherdescriptions:
Asat31December2023,theGroup’srestrictedcurrencyfundstotaledRMB890,612.21(31December2022:RMB279,787.68),whichwasmainlyduetopreservationoflawissue（Asatthereportingdate,thepaymenthasbeenmade）orchangeofaccounttypes.
17.Short-termborrowings
(1)Classificationofshort-termborrowings
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Creditloans | 60,000,000.00 | |
| Discountedborrowingonbills | 329,995,277.14 | 433,993,449.44 |
| Total | 389,995,277.14 | 433,993,449.44 |
Descriptionofclassificationofshort-termborrowings:
Thediscountedborrowingonbillsreferstotheamountofbankacceptancebillsissuedbetweenaffiliatedcompanieswithinthescopeofconsolidationthathavebeendiscountedbutnotyetmaturedattheendoftheyear.Thecreditloanisashort-termborrowingobtainedbytheCompanyfromShenzhenHi-techZoneBranchofBankofChinaLimited.TheborrowingperiodisfromNovember2023toMay2024.Theinterestrateisafloatingrate,whichisre-pricedevery6months.Thefirstinstallmentistheone-yearloanmarketquotationinterestraterecentlyannouncedbytheNationalInterbankFundingCenterasoftheworkingdaybeforetheactualwithdrawaldateminus95basispoints(31December2023:2.5%).
18.Tradingfinancialliabilities
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance |
| Tradingfinancialliabilities | ||
| Including: |
Financialliabilitiesdesignatedatfairvaluethroughprofitorloss
| Financialliabilitiesdesignatedatfairvaluethroughprofitorloss | 62,813,557.52 | 0.00 |
| Including: | ||
| Goldleasing | 62,813,557.52 | 0.00 |
| Total | 62,813,557.52 | 0.00 |
Otherdescriptions:
TheCompanyborrowedgoldfrombanksforproductionandoperation.Beforematuritydate,theCompanywouldreturnthegoldtothebankswiththesamequantityandspecificationpurchasedthroughShanghaiGoldExchangeorborrowedfromthebanks,andpaytheagreedleaseinterest.Theleasetermiswithinoneyear(oneyearinclusive).Asat31December2023,thecostofthefinancialliabilitieswasRMB59,044,746.72andthechangeinfairvaluewasRMB-3,768,810.80(2022:Nil).
19.Notespayable
Currency:RenminbiYuan
| Category | Closingbalance | Openingbalance |
| Bankacceptancebills | 47,986,785.70 | 466,527,730.97 |
| Total | 47,986,785.70 | 466,527,730.97 |
ThetotalamountofnotespayabledueandunpaidatendofperiodwasRMB0.00.
20.Accountspayable
(1)Accountspayablearelistedasfollows
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Accountspayable | 28,164,899.34 | 86,880,869.77 |
| Total | 28,164,899.34 | 86,880,869.77 |
(2)Significantaccountspayableagedover1yearoroverdue
Currency:RenminbiYuan
| Item | Closingbalance | Reasonfornotbeingpaidorcarriedforward |
| Over1year | 3,485,224.98 | Thesupplierfailstoreachthesettlementconditionsasagreedinthecontract |
| Total | 3,485,224.98 |
Otherdescriptions:
21.Otherpayables
Currency:RenminbiYuan
Item
| Item | Closingbalance | Openingbalance |
| Otherpayables | 44,381,542.05 | 102,563,944.81 |
| Total | 44,381,542.05 | 102,563,944.81 |
(1)Otherpayables
1)Otherpayablescategorizedbynature
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Rentandpropertymanagementfeespayable | 13,469,448.60 | 11,248,679.47 |
| Renovationexpensespayable | 15,322,612.68 | 63,140,256.23 |
| Advertisementexpensespayable | 2,429,097.28 | 11,515,571.63 |
| Otherexpensesaccrued | 7,390,825.59 | 9,961,766.20 |
| Deposit | 2,334,052.80 | 1,639,911.88 |
| Others | 3,435,505.10 | 5,057,759.40 |
| Total | 44,381,542.05 | 102,563,944.81 |
2)Significantotheraccountspayableolderthan1yearorpastdue
| Item | Closingbalance | Reasonfornon-reimbursementorcarry-over |
3）Thetop5largestotherpayablesatendofperiodcategorizedbycounterpartyOtherdescriptions:
Asat31December2023,therewerenosignificantotherpayablesagedover1yearoroverdue(31December2022:Nil).
22.Contractliabilities
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Receiptinadvanceoforderpayment | 109,633,363.46 | 126,705,661.82 |
| Total | 109,633,363.46 | 126,705,661.82 |
Note:1ContractliabilitiesmainlyrepresentadvancereceiptscollectedfromcustomersbeforetheGroupfulfills
itsperformanceobligations.RevenuerelatingtothiscontractwillberecognizedwhentheGroupfulfilsitsperformanceobligations.Normally,whentheGroupreceivesadvancepaymentsfromcustomers,itwillnormallyfulfillitsperformanceobligationsandrecognizerevenuewithin30days.
Significantcontractliabilitiesagedover1year
Currency:RenminbiYuan
Item
| Item | Closingbalance | Reasonsforhavingnotbeenpaidorcarriedforward |
Theamountandreasonforsignificantchangesincarryingamountwithinthereportingperiod.
Currency:RenminbiYuan
| Item | Changes | Reasons |
23.Employeebenefitspayable
(1)Employeebenefitspayablearelistedasfollows
Currency:RenminbiYuan
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| I.Short-termemployeebenefits | 68,736,988.33 | 474,943,001.59 | 490,746,919.26 | 52,933,070.66 |
| II.Post-employmentbenefits-definedcontributionplan | 57,135,027.29 | 57,135,027.29 | ||
| III.Terminationbenefits | 11,012,658.61 | 11,012,658.61 | ||
| Total | 68,736,988.33 | 543,090,687.49 | 558,894,605.16 | 52,933,070.66 |
(2)Short-termemployeebenefitsareasfollows:
Currency:RenminbiYuan
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| 1.Salaries,bonuses,allowancesandsubsidies | 65,393,029.23 | 415,385,784.74 | 430,058,308.38 | 50,720,505.59 |
| 2.Staffwelfare | 3,154,849.89 | 8,732,618.74 | 10,728,427.93 | 1,159,040.70 |
| 3.Socialsecuritycontributions | 29,908,332.41 | 29,908,332.41 | ||
| Including:Medicalinsurance | 28,004,917.61 | 28,004,917.61 | ||
| Work-relatedinjuryinsurance | 1,085,367.16 | 1,085,367.16 | ||
| Maternityinsurance | 818,047.64 | 818,047.64 | ||
| 4.Housingfunds | 19,538,449.26 | 18,561,374.64 | 977,074.62 | |
| 5.UnionfundandEmployeeeducationfund | 189,109.21 | 1,377,816.44 | 1,490,475.90 | 76,449.75 |
| Total | 68,736,988.33 | 474,943,001.59 | 490,746,919.26 | 52,933,070.66 |
(3)Definedcontributionplanareasfollows:
Currency:RenminbiYuan
Item
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| 1.Basicpensioninsurance | 55,518,960.79 | 55,518,960.79 | ||
| 2.Unemploymentinsurancepremium | 1,616,066.50 | 1,616,066.50 | ||
| Total | 57,135,027.29 | 57,135,027.29 |
Otherdescriptions:
Asat31December2023,theGrouphadnoarrearsinthenatureofremunerationpayabletoemployees.
24.Taxespayable
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Valueaddedtax | 5,728,457.95 | 8,465,825.13 |
| Excisetax | 9,698,112.45 | 14,173,620.72 |
| Corporateincometax | 301,256.61 | 34,164,857.66 |
| Individualincometaxwithheld | 869,148.96 | 780,127.00 |
| Urbanmaintenanceandconstructiontax | 964,902.69 | 1,347,723.05 |
| Educationsurcharge | 375,449.44 | 549,380.64 |
| Localeducationsurcharge | 250,299.91 | 362,786.55 |
| Others | 20,177.95 | 40,818.91 |
| Total | 18,207,805.96 | 59,885,139.66 |
Otherdescriptions:
25.Currentportionofnon-currentliabilities
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| Leaseliabilitiesduewithin1year | 195,515,150.71 | 351,516,900.54 |
| Total | 195,515,150.71 | 351,516,900.54 |
Otherdescriptions:
26.Othercurrentliabilities
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| OutputVATtobetransferred | 11,288,478.87 | 13,670,511.44 |
| Total | 11,288,478.87 | 13,670,511.44 |
Note1:TheGrouphaspresentedtheoutputVATportionoftheadvancereceiptsastheamountofVATtoberesoldtax.
Changesinshort-termbondspayable:
Currency:RenminbiYuan
Name
| Name | Parvalue | Couponrate | Issuedate | Term | Issueamount | Openingbalance | Bondsissued | Accruedinterestatparvalue | Amortizationofpremiumordepreciation | Repayment | Closingbalance | Defaultornot |
Total
Otherdescriptions:
27.Leaseliabilities
Currency:RenminbiYuan
TotalItem
| Item | Closingbalance | Openingbalance |
| Leasepaymentspayable | 67,781,149.67 | 276,542,164.23 |
| Total | 67,781,149.67 | 276,542,164.23 |
Otherdescriptions:
28.Provisions
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance | Reasons |
| Provisionforreturns | 487,409.00 | 921,567.41 | Provisionforreturnsismadeforsalesofgoodswithsalesreturnconditions.TheGroupmakesprovisionforreturnsbasedonhistoricalexperiencedataandsales. |
| Shoprestorationobligations | 13,615,982.00 | 16,004,249.50 | ShoprestorationobligationsrepresentcoststhattheGroup,asthelessee,expectstoincurundertheleaseagreementtorestoretheleasedassetstotheconditionagreedunderthetermsofthelease.TheGroupestimatesrestorationcostsbasedonindustryconditionsandhistoricalexperience. |
| Total | 14,103,391.00 | 16,925,816.91 |
Otherdescriptions,includingdescriptionofsignificantassumptionsandestimatesrelatedtosignificantprovisions:
29.Sharecapital
Currency:RenminbiYuan
Openingb
alance
| Openingbalance | Movementsduringtheyear | Closingbalance | |||||
| Newsharesissued | Bonusissue | Housingfundtransferredtoshares | Others | Subtotal | |||
| Total | 400,010,000.00 | 400,010,000.00 | |||||
Otherdescriptions:
30.Capitalreserves
Currency:RenminbiYuan
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Sharepremium | 4,403,792,844.63 | 4,403,792,844.63 | ||
| Othercapitalreserves | -227.67 | -227.67 | ||
| Share-basedpaymentsincludedinthecapitalreserve | 26,344,118.97 | 187,422.35 | 26,531,541.32 | |
| Shareholdingsystemtransformation | 29,640,980.88 | 29,640,980.88 | ||
| Total | 4,459,777,716.81 | 187,422.35 | 4,459,965,139.16 |
Otherdescriptions,includingdescriptionofchangesfortheperiodandreasons:
31.Othercomprehensiveincome
Currency:RenminbiYuan
| Item | Openingbalance | Amountforthecurrentperiod | Closingbalance | |||||
| Amountincurredbeforeincometaxforthecurrentperiod | Less:Reclassificationfromothercomprehensiveincometoprofitorloss | Less:Reclassificationfromothercomprehensiveincometoretainedearnings | Less:Incometaxexpenses | Profitattributabletoshareholdersoftheparentcompanyaftertax | Attributabletonon-controllinginterestsaftertax | |||
| II.Othercomprehensiveincomethatmaybe | 3,993,254.00 | 456,647.25 | 4,449,901.25 | |||||
reclassifiedtoprofitorloss
| reclassifiedtoprofitorloss | |||||
| Exchangedifferencesontranslationofforeigncurrencyfinancialstatements | 3,993,254.00 | 456,647.25 | 4,449,901.25 | ||
| Totalothercomprehensiveincome | 3,993,254.00 | 456,647.25 | 4,449,901.25 |
Otherdescriptions,includingadjustmenttothetransferredeffectiveprofitorlossarisingfromcashflowhedgetoinitiallyrecognizedamountofthehedgeditem：
32.Surplusreserves
Currency:RenminbiYuan
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Statutorysurplusreserves | 200,005,000.00 | 200,005,000.00 | ||
| Total | 200,005,000.00 | 200,005,000.00 |
Descriptionofsurplusreserves,includingdescriptionofchangesfortheperiodandreasons:
AccordingtotheprovisionsoftheCompanyLawandtheCompany’sArticlesofAssociation,theCompanyappropriates10%oftheprofittothestatutorysurplusreserves.Wheretheaccumulatedamountofthesurplusreservesreaches50%ormoreoftheCompany’sregisteredcapital,furtherappropriationisnotrequired.
33.Retainedearnings
Currency:RenminbiYuan
| Item | Forthecurrentperiod | Forthepriorperiod |
| Balanceatbeginningofcurrentperiodafteradjustment | 1,739,260,233.15 | 1,830,833,254.42 |
| Add:Netprofitattributabletoshareholdersoftheparentcompanyforthecurrentperiod | 68,957,568.40 | 729,241,946.67 |
| Less:Appropriationtostatutorysurplusreserves | 0.00 | 20,794,967.94 |
| Declarationofdividendsono | 400,010,000.00 | 800,020,000.00 |
rdinaryshares
| rdinaryshares | ||
| Balanceatendofcurrentperiod | 1,408,207,801.55 | 1,739,260,233.15 |
Detailsofadjustmenttobalanceatbeginningofcurrentperiod:
1)NobalanceadjustmentofretainedearningsatbeginningofcurrentperiodwasmadeinrelatedtotheapplicationofAccountingStandardforBusinessEnterprisesandothernewregulations.
2)Nobalanceadjustmentofretainedearningsatbeginningofcurrentperiodwasmadeinrelatedtochangesinaccountingpolicies.
3)Nobalanceadjustmentofretainedearningsatbeginningofcurrentperiodwasmadeinrelatedtosignificantaccountingerrorcorrection.
4)Nobalanceadjustmentofretainedearningsatbeginningofcurrentperiodwasmadeinrelatedtochangesinscopeofbusinesscombinationunderthesamecontrol.
5)Nobalanceadjustmentofretainedearningsatbeginningofcurrentperiodwasmadeinrelatedtootheradjustments.
34.Revenueandcostofsales
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 2,173,757,035.39 | 675,742,928.54 | 3,650,181,354.03 | 1,082,800,171.20 |
| Otherbusiness | 6,520,708.61 | 3,810,329.34 | 31,393,058.65 | 29,472,295.09 |
| Total | 2,180,277,744.00 | 679,553,257.88 | 3,681,574,412.68 | 1,112,272,466.29 |
Whethertheloweroftheauditednetprofitbeforeandafterdeductingnon-recurringprofitorlossisnegative?Yes□No
Currency:RenminbiYuan
| Item | Currentyear | Detailsofdeductions | Prioryear | Detailsofdeductions |
| Revenueamount | 2,180,277,744.00 | / | 3,681,574,412.68 | / |
| Totalamountofrevenuedeductionitems | 6,520,708.61 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. | 31,393,058.65 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. |
| Proportionoftotalamountofrevenuedeductionitemsinrevenue | 0.30% | 0.85% | ||
| I.Revenueunrelatedtotheprincipal |
business
| business | ||||
| 1.Revenuefromotherbusinessotherthannormaloperatingbusiness.Forexample,therevenuefromleasingfixedassets,intangibleassetsandpackagingmaterials,sellingmaterials,exchangingnon-monetaryassetswithmaterials,andoperatingentrustedmanagementbusiness.Andtherevenueincludedintherevenuefromprincipalbusinessbutoutsidethenormalbusinessoperationoflistedcompanies. | 6,520,708.61 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. | 31,393,058.65 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. |
| Subtotalofrevenueunrelatedtoprincipalbusiness | 6,520,708.61 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. | 31,393,058.65 | Itismainlytherevenuefromweddingplanningbusiness,salesofproductstobedisposed,packagingmaterialsandotherrevenues. |
| II.Revenuewithoutcommercialsubstance | ||||
| Subtotalofrevenuewithoutcommercialsubstance | 0.00 | N/A | 0.00 | N/A |
| Amountofrevenueafterdeduction | 2,173,757,035.39 | / | 3,650,181,354.03 | / |
Disaggregationofrevenueandcostofsales:
Currency:RenminbiYuan
Categoryofcontra
cts
| Categoryofcontracts | Segment1 | Segment2 | Total | |||||
| Revenue | Costofsales | Revenue | Costofsales | Revenue | Costofsales | Revenue | Costofsales | |
| Typeofbusiness | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 | ||||
| Including: | ||||||||
| Engagementdiamondrings | 1,699,139,354.11 | 506,538,634.64 | 1,699,139,354.11 | 506,538,634.64 | ||||
| Weddingdiamondrings | 449,380,892.69 | 158,007,633.73 | 449,380,892.69 | 158,007,633.73 | ||||
| Otheraccessories | 25,236,788.59 | 11,196,660.17 | 25,236,788.59 | 11,196,660.17 | ||||
| Otherbusinesses | 6,520,708.61 | 3,810,329.34 | 6,520,708.61 | 3,810,329.34 | ||||
| Classifiedbyregionofoperation | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 | ||||
| Including: | ||||||||
| Mainland | 2,168,177,280.71 | 675,403,337.10 | 2,168,177,280.71 | 675,403,337.10 | ||||
| Overseas | 12,100,463.29 | 4,149,920.78 | 12,100,463.29 | 4,149,920.78 | ||||
| Marketorcustomertype | ||||||||
| Including: | ||||||||
Typeofcontract
| Typeofcontract |
| Including: |
Classifiedbytimeofgoodstransfer
| Classifiedbytimeofgoodstransfer | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 | |
| Including: | |||||
| Incomerecognizedatapointintime | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 | |
| Classifiedbycontractperiod | |||||
| Including: |
Classifiedbysaleschannel
| Classifiedbysaleschannel | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 | |
| Including: | |||||
| Self-employmentincome | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 | |
| Total | 2,180,277,744.00 | 679,553,257.88 | 2,180,277,744.00 | 679,553,257.88 |
Informationabouttheperformanceobligations:
| Item | Timeforfulfillmentofperformanceobligations | Significantpaymentterms | NatureofthegoodstheCompanycommitstotransfer | Whetheritistheprincipal | AmountassumedbytheCompanythatisexpectedtoberefundedtothecustomer | TypeofqualityassuranceprovidedbytheCompanyandrelatedobligations |
| Salesofgoods | whengoodsaredelivered | Undernormalcircumstances,theCompanydeliv | Jewelry | Yes | Thecustomerhastherighttoreturntheproductw | Generally,guaranteequalityassuranceisprovid |
ersthegoodswithin15-60daysaftertheconsumerhaspaidinadvancefortheorder.
| ersthegoodswithin15-60daysaftertheconsumerhaspaidinadvancefortheorder. | ithin15daysafterreceivingit,soitisnecessarytoestimatethereturnratebasedonthehistoricalsalessituationandcalculatetheprovisionforreturn,whichisdetailedinNoteVII.28. | edtothecustomer.RefertoNoteV.26fordetailsofaccountingassets |
OtherdescriptionsUndertheself-operatedbusiness,thecustomercompletestheperformanceobligationswhenreceivingthegoods.Undernormalcircumstances,forstoresdirectlyoperated,thegoodsaredeliveredwithin30daysafterreceivingthecontractprice;formallassociatesande-commerce,thecontractpriceisusuallyreceivedwithin15-60daysafterdelivery.Thecustomerhastherighttoreturntheproductwithin15daysafterreceivingit,soitisnecessarytoestimatethereturnratebasedonthehistoricalsalessituationandcalculatetheprovisionforreturn,whichisdetailedinNoteVII.28.Informationrelatingtothetransactionpriceallocatedtotheremainingperformanceobligations:
Attheendofthereportingperiod,theamountofrevenuecorrespondingtotheperformanceobligationsthathavebeensignedbuthavenotyetbeenfulfilledorcompletedwasRMB109,633,363.46.Amongthem,RMBisexpectedtoberecognizedin,RMBisexpectedtoberecognizedin,andRMBisexpectedtoberecognizedin.Informationaboutvariableconsiderationinthecontract:
Significantchangesinthecontractorsignificanttransactionpriceadjustments
Currency:RenminbiYuan
| Item | Accountingtreatment | Amountaffectedonrevenue |
Otherdescriptions:
35.Taxesandsurcharges
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Excisetax | 94,846,226.96 | 161,139,856.39 |
| Urbanmaintenanceandconstructiontax | 14,685,678.85 | 21,999,220.70 |
| Educationsurcharge | 6,012,263.70 | 9,396,015.92 |
| Resourcetax | 0.00 | 0.00 |
Propertytax
| Propertytax | 0.00 | 0.00 |
| Landusetax | 0.00 | 0.00 |
| Vehicleusetax | 4,620.00 | 4,300.00 |
| Stamptax | 1,469,675.40 | 2,556,251.77 |
| Localeducationsurcharge | 4,011,599.61 | 6,264,009.84 |
| Others | 240.00 | 240.00 |
| Total | 121,030,304.52 | 201,359,894.62 |
Otherdescriptions:
36.Administrativeexpenses
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Wagesorsalaries | 76,131,686.65 | 79,373,604.27 |
| Inputtaxnotdeductibleforintra-grouptransactions | 24,529,983.06 | 34,246,969.57 |
| Depreciationandamortization | 20,230,746.21 | 20,269,089.25 |
| Professionalagencyserviceexpenses | 15,193,056.82 | 12,916,862.65 |
| Officeexpenses | 4,384,275.67 | 5,786,187.86 |
| Propertymanagementandutilityexpenses | 3,898,623.79 | 4,008,808.69 |
| Travelingexpenses | 1,356,038.53 | 2,344,355.77 |
| Share-basedpaymentexpenses | 187,422.35 | 561,317.20 |
| Others | 6,084,278.80 | 4,698,682.61 |
| Total | 151,996,111.88 | 164,205,877.87 |
Otherdescriptions:
37.Sellingexpenses
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Wagesorsalaries | 447,166,997.01 | 474,286,451.10 |
| Marketingexpenses | 207,691,788.25 | 339,084,488.01 |
| Depreciationandamortization | 435,539,360.20 | 433,607,701.53 |
| Propertymanagementandutilityexpenses | 73,305,894.36 | 57,143,404.37 |
| Platformservicefees | 11,837,832.98 | 19,859,964.05 |
| Officeexpenses | 13,981,781.58 | 26,456,827.29 |
| Travelingexpenses | 8,109,667.15 | 9,990,373.37 |
| Professionalagencyserviceexpenses | 5,205,649.32 | 3,107,987.63 |
| Rentsexcludedintheleaseliabilities | 6,427,115.11 | 37,374,018.79 |
Courierexpenses
| Courierexpenses | 2,383,810.20 | 3,204,581.15 |
| Packagingexpenses | 1,043,861.83 | 3,421,251.49 |
| Others | 16,067,407.60 | 14,500,488.72 |
| Total | 1,228,761,165.59 | 1,422,037,537.50 |
Otherdescriptions:
38.Researchanddevelopmentexpenses
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Wagesorsalaries | 18,580,887.31 | 14,846,366.43 |
| Commissioneddevelopmentserviceexpenses | 2,596,996.98 | 2,294,282.27 |
| Depreciationandamortization | 536,909.46 | 544,874.10 |
| Others | 422.00 | 258,609.57 |
| Total | 21,715,215.75 | 17,944,132.37 |
Otherdescriptions:
39.Financeexpenses
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Interestexpenses | 22,148,238.97 | 23,830,354.96 |
| Less:Interestincome | 8,288,198.44 | 21,912,750.27 |
| Foreignexchangedifferences | 1,377,037.20 | 1,548,872.47 |
| Bankcharges | 10,533,027.13 | 18,070,277.31 |
| Total | 25,770,104.86 | 21,536,754.47 |
Otherdescriptions:
40.Otherincome
Currency:RenminbiYuan
| Sourceofotherincome | Amountforthecurrentperiod | Amountforthepriorperiod |
| Governmentgrantsrelatedtoroutineactivities | 17,239,801.74 | 23,433,558.47 |
| VATleviedandrefunded1 | 8,266,133.90 | 15,833,085.31 |
| Taxbenefits2 | 1,118,925.88 | 162,770.75 |
| Others | 122,137.04 | 348,258.47 |
Note1:AccordingtotheNoticeoftheGeneralAdministrationofCustomsoftheMinistryofFinanceandtheSt
ateAdministrationofTaxationonAdjustingtheRelevantTaxPoliciesoftheDiamondandShanghaiDiamondExchange(CaiShui[2006]No.65),polisheddiamondsimportedthroughthecustomsdeclarationofthecompetentcustomsoftheDiamondExchangeshallbeleviedandrefundedimmediatelyiftheactualVATburdenexceeds4%attheimportstage.ShanghaiDarry,asubsidiaryoftheCompany,hasthemembershipoftheShanghaiDiamondExchangeandenjoysthetaxtreatmentofimmediaterefundforthepartoftheactualVATburdenintheimportprocessexceeding4%.
Note2:AccordingtotheAnnouncementoftheStateAdministrationofTaxationontheExemptionofSmall-scaleTaxpayersfromVATCollectionandAdministration(SATAnnouncementNo.19[2023]),small-scaletaxpayerswhoengageinVATtaxablesalesandtheirtotalmonthlysalesdonotexceedRMB100,000(orRMB300,000ifonequarterisataxperiod).SomeoftheCompany’sbranchesaresmall-scaletaxpayersandmeettheabovestandards,andwillbeexemptfromVATin2023.
41.Fairvaluegains
Currency:RenminbiYuan
Sourceoffairvaluegains
| Sourceoffairvaluegains | Amountforthecurrentperiod | Amountforthepriorperiod |
| Financialassetsheldfortrading | 34,920,377.10 | 39,294,362.36 |
| Financialliabilitiesheldfortrading | -3,768,810.80 | 0.00 |
| Total | 31,151,566.30 | 39,294,362.36 |
Otherdescriptions:
42.Investmentincome
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Investmentincomeoffinancialassetsheld-for-tradingduringtheholdingperiod | 158,725,753.87 | 71,309,897.15 |
| Interestincomeearnedduringtheholdingperiodofdebtinvestment | 43,188,743.26 | 17,693,148.47 |
| Investmentincomereceivedfromdisposaloffinancialliabilitiesdesignatedatfairvaluethroughprofitorloss | -454,869.03 | 0.00 |
| Total | 201,459,628.10 | 89,003,045.62 |
Otherdescriptions:
43.Creditimpairmentlosses
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Impairmentlossforaccountsreceivable | 2,006,036.23 | 3,698,479.08 |
| Impairmentlossforotherreceivables | 0.00 | -1,905,000.00 |
| Impairmentlossfornon-currentassetsduewithinoneyear | -9,525,986.96 | 0.00 |
| Total | -7,519,950.73 | 1,793,479.08 |
Otherdescriptions:
44.Impairmentlossesofassets
Currency:RenminbiYuan
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| I.Lossesfromdeclineinvalueofinventoriesandlossesfromimpairmentofcontractperformancecost | -12,880,040.30 | -4,237,633.79 |
| XII.Others | -92,462,615.85 | -24,183,140.90 |
| Total | -105,342,656.15 | -28,420,774.69 |
Otherdescriptions:
Others:
Theamountfor2023,RMB-92,462,615.85,includesimpairmentlossoflong-termprepaidexpenses(RMB-35,721,596.82)andimpairmentlossofright-of-useassets(RMB-56,741,019.03);Theamountfor2022,RMB-24,183,140.90,includesimpairmentlossoflong-termprepaidexpenses(RMB-5,680,172.80)andimpairmentlossofright-of-useassets(RMB-18,502,968.10).
45.Gainsondisposalofassets
Currency:RenminbiYuan
| Sourceofgainsondisposalofassets | Amountforthecurrentperiod | Amountforthepriorperiod |
| Gainorlossondisposaloflong-termassets | 19,708,867.36 | 1,244,949.25 |
46.Non-operatingincome
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Compensation | 2,632,045.72 | 1,166,242.21 | 2,632,045.72 |
| Others | 249,877.46 | 70,848.25 | 249,877.46 |
| Total | 2,881,923.18 | 1,237,090.46 | 2,881,923.18 |
Otherdescriptions:
47.Non-operatingexpenses
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Liquidateddamagesandlatefees | 7,042,543.67 | 582,566.17 | 7,042,543.67 |
| Others | 666,997.81 | 185,867.41 | 666,997.81 |
| Total | 7,709,541.48 | 768,433.58 | 7,709,541.48 |
Otherdescriptions:
Theliquidateddamagesandlatefeesin2023weremainlytheliquidateddamagesarisingfromtheearlyclosureofstores.
48.Incometaxexpenses
(1)Statementofincometaxexpenses
Currency:RenminbiYuan
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Currenttax | 45,086,187.04 | 155,414,780.78 |
| Deferredtax | -1,215,336.78 | 722,413.61 |
| Total | 43,870,850.26 | 156,137,194.39 |
(2)Reconciliationofincometaxexpensestotheaccountingprofit
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod |
| Profitbeforetax | 112,828,418.66 |
| Taxatthestatutory/applicabletaxrate | 28,207,104.66 |
| Effectofdifferenttaxratesforsomesubsidiaries | -25,567,086.24 |
| Effectofadjustmentstoincometaxinrespectofpriorperiods | 1,605,343.32 |
| Effectofcost,expenseandlossnotdeductiblefortax | 1,653,345.92 |
| Effectofutilizingdeductiblelossnotrecognizedfordeferredtaxassetsforthepriorperiod | -111,694.40 |
| Effectofdeductibletemporarydifferenceordeductiblelossnotrecognizedfordeferredtaxassetsforthecurrentperiod | 40,333,986.11 |
| R&Dexpensesaresuper-deducted | -2,250,149.11 |
| Incometaxexpenses | 43,870,850.26 |
Otherdescriptions:
TheincometaxoftheGrouphasbeenprovidedattheapplicablerateontheestimatedassessabletaxableprofitsarisinginMainlandChina.Incometaxesonprofitsassessableelsewherehavebeencalculatedattheratesoftaxprevailinginthecountries/jurisdictionsinwhichtheGroupoperates,inaccordancewithexistinglaws,interpretationsandpractices.
49.OthercomprehensiveincomeRefertoNoteVII.31fordetails.
50.Itemsinthecashflowstatement
(1)CashrelatingtooperatingactivitiesOthercashreceiptsrelatingtooperatingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Recoverstorerenovationsandotherdeposits | 7,460,972.41 | 8,835,864.26 |
Receiptofplatformrebates
| Receiptofplatformrebates | 242,142.62 | 4,325,330.25 |
| Bankinterestincome | 8,288,198.44 | 20,667,425.02 |
| Governmentgrants | 17,239,801.74 | 23,433,558.47 |
| Others | 21,160,057.63 | 5,393,076.90 |
| Total | 54,391,172.84 | 62,655,254.90 |
Descriptionofothercashreceiptsrelatingtooperatingactivities:
Othercashpaymentsrelatingtooperatingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Paymentofrentcommission,propertymanagementandutilityexpenses | 76,949,766.73 | 82,717,265.80 |
| Paymentofmarketingexpenses | 217,121,618.34 | 352,347,629.80 |
| Paymentofofficeandtravelexpenses | 28,540,022.33 | 44,110,164.16 |
| Paymentofcourierexpenses | 6,627,529.76 | 10,942,674.44 |
| Paymentofpackagingexpenses | 12,469,544.20 | 37,612,628.87 |
| Paymentofcardfee | 10,986,186.41 | 18,070,277.46 |
| Paymentofrenovationandotherdeposits | 3,638,793.10 | 10,025,830.66 |
| Paymentofconsultationandtesting | 34,787,513.75 | 44,946,232.79 |
| Paymentofe-commerceplatformservicefee | 11,643,632.23 | 21,387,218.80 |
| Others | 8,559,426.93 | 5,651,697.95 |
| Total | 411,324,033.78 | 627,811,620.73 |
Othercashpaymentsrelatingtooperatingactivities
(2)Cashrelatingtoinvestingactivities
Othercashreceiptsrelatingtoinvestingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
Othersignificantcashreceiptsrelatingtoinvestingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Receiptofinvestmentsinbankfinancialproducts | 1,700,000,000.00 | 770,000,000.00 |
| Receiptofinvestmentsinstructureddeposits | 6,703,748,941.31 | 4,558,462,790.68 |
| Total | 8,403,748,941.31 | 5,328,462,790.68 |
Descriptionofothercashreceiptsrelatingtoinvestingactivities:
Othercashpaymentsrelatingtoinvestingactivities
Currency:RenminbiYuan
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
Significantcashpaymentsrelatingtoinvestingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Paymentofbankfinancialproductsinvestment | 1,610,000,000.00 | 1,385,000,000.00 |
| Paymentofstructureddepositinvestments | 6,433,851,820.32 | 8,184,751,822.21 |
| Total | 8,043,851,820.32 | 9,569,751,822.21 |
Descriptionofothercashpaymentsrelatingtoinvestingactivities
(3)Cashrelatingtofinancingactivities
Othercashreceiptsrelatingtofinancingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Receiptsofreturnedrentaldeposit | 12,925,343.87 | 5,435,963.01 |
| Receiptsofwithholdingdividendtax | 2,686,700.54 | 5,264,759.99 |
| Total | 15,612,044.41 | 10,700,723.00 |
Descriptionofothercashreceiptsrelatingtofinancingactivities:
Othercashpaymentsrelatingtofinancingactivities
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Paymentoffixedrent | 343,219,838.63 | 335,781,536.76 |
| Paymentofrentaldeposit | 5,089,234.91 | 30,357,327.43 |
| Paymentofwithholdingdividendbonustax | 2,686,700.54 | 5,264,759.99 |
| Total | 350,995,774.08 | 371,403,624.18 |
DescriptionofothercashpaymentsrelatingtofinancingactivitiesChangesinliabilitiesarisingfromfinancingactivities
□Applicable?Notapplicable
| Item | Openingbalance | Increase | Decrease | Closingbalance | ||
| cashmovements | Non-cashmovements | cashmovements | Non-cashmovements | |||
| Short-termborrowings | 433,993,449.44 | 517,721,40 | 561,719,581. | 389,995,27 | ||
9.20
| 9.20 | 50 | 7.14 | ||||
| Otherpayables | 102,563,944.81 | 15,612,044.41 | 406,809,907.87 | 414,585,843.32 | 66,018,511.72 | 44,381,542.05 |
| Leaseliabilities(Includingleaseliabilitiesduewithinoneyear) | 628,059,064.77 | 343,219,838.63 | 21,542,925.76 | 263,296,300.38 | ||
| Total | 1,164,616,459.02 | 533,333,453.61 | 406,809,907.87 | 1,319,525,263.45 | 87,561,437.48 | 697,673,119.57 |
51.Supplementtocashflowstatement
(1)Supplementtocashflowstatement
Currency:RenminbiYuan
| Supplementaryinformation | Amountforthecurrentperiod | Amountforthepriorperiod |
| 1.Reconciliationofprofit/(loss)tocashflowsfromoperatingactivities | ||
| Profit | 68,957,568.40 | 729,241,946.67 |
| Add:Provisionforimpairmentofassets | 105,342,656.15 | 28,420,774.69 |
| Depreciationoffixedassets,depletionofoilandnaturalgasassetsanddepreciationofbearerbiologicalassets | 6,007,930.70 | 3,974,151.64 |
| Depreciationofright-of-useassets | 351,904,368.67 | 355,607,929.93 |
| Amortizationofintangibleasset | 2,630,723.90 | 2,940,850.52 |
| Amortizationoflong-termprepaidexpenses | 97,016,164.88 | 91,898,732.79 |
| Lossondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsareexpressedwithnegativevalue) | -19,708,867.36 | -1,244,949.25 |
| Lossofretirementoffixedassets(gainsareexpressedwithnegativevalue) | ||
| Lossonfairvaluechanges(gainsareexpressedwithnegati | -31,151,566.30 | -39,294,362.36 |
vevalue)
| vevalue) | ||
| Financialexpenses(gainsareexpressedwithnegativevalue) | 23,070,045.62 | 24,133,902.03 |
| Investmentlosses(gainsareexpressedwithnegativevalue) | -201,459,628.10 | -89,003,045.62 |
| Decreaseindeferredtaxassets(increaseisexpressedwithnegativevalue) | -7,102,331.80 | -3,425,426.97 |
| Increaseindeferredtaxliabilities(decreaseisexpressedwithnegativevalue) | 5,886,995.02 | 4,146,880.41 |
| Decreaseininventories(increaseisexpressedwithnegativevalue) | 189,112,300.03 | -229,917,478.98 |
| Decreaseinoperatingreceivables(increaseisexpressedwithnegativevalue) | 19,295,931.37 | 861,877.87 |
| Increaseinoperatingpayables(decreaseisexpressedwithnegativevalue) | -577,721,730.54 | -63,635,737.18 |
| Others | 4,884,947.17 | 3,305,066.05 |
| Netcashflowsfromoperatingactivities | 36,965,507.81 | 818,011,112.24 |
| 2.Significantinvestmentandfinancingactivitiesnotinvolvingcashreceiptsandpayments | ||
| Debtstransferredtocapital | ||
| Convertiblecorporatebondsduewithinoneyear | ||
| Fixedassetsunderfinanceleases | ||
| 3.Netchangesincashandcashequivalents: | ||
| Cashatendofperiod | 226,963,610.96 | 521,625,030.62 |
| Less:Cashatbeginningofperiod | 521,625,030.62 | 4,741,510,453.45 |
| Add:Cashequivalentsatendofperiod | ||
| Less:Cashequivalentsatbegi |
nningofperiod
| nningofperiod | ||
| Netincreaseincashandcashequivalents | -294,661,419.66 | -4,219,885,422.83 |
(2)Compositionofcashandcashequivalents
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance |
| I.Cash | 226,963,610.96 | 521,625,030.62 |
| Including:Cashonhand | 434,213.76 | 391,749.23 |
| Bankdepositsondemand | 223,505,249.44 | 512,798,797.26 |
| Othercurrencyfundsondemand | 3,024,147.76 | 8,434,484.13 |
| III.Cashandcashequivalentsatendofperiod | 226,963,610.96 | 521,625,030.62 |
52.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Currency:RenminbiYuan
| Item | Closingbalancedenominatedinforeigncurrencies | Exchangerate | ClosingbalanceinRMB |
| Cashandbankbalances | |||
| Including:USD | 841,955.84 | 7.0827 | 5,963,320.63 |
| EUR | 47,495.39 | 7.8592 | 373,275.77 |
| HKD | 1,563,197.08 | 0.9062 | 1,416,600.46 |
Accountspayable
| Accountspayable | |||
| Including:USD | 30,245.26 | 7.0827 | 214,218.10 |
| HKD | 17,201.72 | 0.9062 | 15,588.54 |
Otherpayables
| Otherpayables | |||
| Including:HKD | 127,913.12 | 0.9062 | 115,917.43 |
| EUR | 7,467.81 | 7.8592 | 58,691.01 |
| USD | 10,032.97 | 7.0827 | 71,060.52 |
| SGD | 1,993.20 | 5.3772 | 10,717.84 |
Accountsreceivable
| Accountsreceivable | |||
| Including:USD | 69,652.10 | 7.0827 | 493,324.93 |
| EUR | |||
| HKD | 470,945.35 | 0.9062 | 426,780.10 |
Long-termborrowings
| Long-termborrowings |
| Including:USD |
| EUR |
| HKD |
Otherdescriptions:
Foreigncurrencymonetaryitemsrefertonon-RMBmonetaryitems.
(2)Descriptionofoverseasoperatingentities.Forkeyoverseasoperatingentities,theirmajoroversea
soperatingplace,functionalcurrenciesandselectionbasisshallbedisclosed.Incaseofanychangesinfunctionalcurrencies,thereasonsforsuchchangesshallalsobedisclosed.
□Applicable?Notapplicable
53.Leases
(1)TheCompanyasalessee?Applicable□NotapplicableVariableleasepaymentsnotincludedinthemeasurementofleaseliabilities(ifapplicable)?Applicable□NotapplicableAsalessee
| 2023 | 2022 | |
| Interestexpensesonleaseliabilities | 14,955,205.03 | 21,536,754.47 |
| Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(ifapplicable) | 6,427,115.11 | 37,374,018.79 |
| Cashoutflowsforfixedleasepayments | 343,219,838.63 | 335,781,536.76 |
| Totalcashoutflowforleases | 364,602,158.77 | 394,692,310.02 |
TheGrouphasleasecontractsforvariousitemsofbuildings,usedinitsoperations,andleasesareusuallyfor1to5years.LeasecontractsusuallystipulatethattheGroupcannotsubleasetheleasedassets,andsomeleasecontractsrequiretheGroup'sfinancialindicatorstobemaintainedatacertainlevel.Thereareseveralleasecontractsthatincludeextensionandterminationoptionsandvariableleasepayments.Referto“Potentialfuturecashoutflowsnotincludedinthemeasurementofleaseliabilities”fortheimpactofclausesrelatingtovariableleasepaymentsonfuturepotentialcashoutflows.PotentialfuturecashoutflowsnotincludedinthemeasurementofleaseliabilitiesTheGroup'spotentialfuturecashoutflowsnotincludedinthemeasurementofleaseliabilitiesaremainlyderivedfromvariableleasepayments,exposuretoleasesthathavebeencommittedbutnotyetcommenced.VariableleasepaymentsSomeofthepropertyleaseswithintheCompanycontainvariableleasepaymentclausesthatarelinkedtosalesgeneratedfromtheunderlyingstore.Theseclausesareused,whenpossible,inordertomatchleasepaymentswithstoresgeneratinghighercashflows.Asat31December2023,theleasingstatusoftheGroup'spremisesandbuildingswasasfollows:
Numberofshopsandoffices(pcs)
| Numberofshopsandoffices(pcs) | Fixedpayments | Variablepayments | Totalpayments | |
| Fixedpaymentsonly | 284 | 180,191,040.24 | 180,191,040.24 | |
| Variablepayments | 266 | 163,028,798.39 | 6,427,115.11 | 169,455,913.50 |
| Total | 550 | 343,219,838.63 | 6,427,115.11 | 349,646,953.74 |
IfthesalesofalltheGroup'sstoresincreaseby5%,thetotalleasepaymentsareexpectedtoincreaseby0.13%;IfthesalesofalltheGroup'sstoresdecreaseby5%,thetotalleasepaymentisexpectedtodecreaseby0.11%LeasesthathavebeenpromisedbutnotyetcommencedTheGroup'sexpectedfuturecashoutflowsforofleasesthathavebeenpromisedbutnotyetcommencedareasfollows:
| 2023 | 2022 | |
| Within1year,inclusive | 384,600.00 | 7,807,604.75 |
| 1to2years,inclusive | 1,056,600.00 | 11,664,137.21 |
| 2to3years,inclusive | 842,250.00 | 9,947,015.73 |
| Over3years | 540,000.00 | 3,088,983.25 |
| Total | 2,823,450.00 | 32,507,740.94 |
OtherinformationrelatingtoleasesForright-of-useassets,refertoNoteVII.11.Simplificationofrentalexpensesforshort-termleasesandlow-valueassetleases(ifapplicable)
□Applicable?NotapplicableSituationsinvolvingsaleandleasebacktransactions
(2)TheGroupasalessorOperatingleaseasalessor
□Applicable?NotapplicableOperatingleaseasalessor
□Applicable?NotapplicableAnnualundiscountedleasereceiptsforthenextfiveyears
□Applicable?NotapplicableReconciliationofundiscountedleasereceiptstonetleaseinvestments
(3)Recognizeprofitorlossonsalesoffinanceleasesasamanufacturerordealer
□Applicable?Notapplicable
VIII.Researchanddevelopmentexpenditure
Currency:RenminbiYuan
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Wagesandsalaries | 18,580,887.31 | 14,846,366.43 |
| Commissioneddevelopmentserviceexpenses | 2,596,996.98 | 2,294,282.27 |
| Depreciationandamortization | 536,909.46 | 544,874.10 |
| Others | 422.00 | 258,609.57 |
| Total | 21,715,215.75 | 17,944,132.37 |
| Including:researchanddevelopmentexpenses | 21,715,215.75 | 17,944,132.37 |
IX.Changesinscopeofconsolidation
1.ChangesinscopeofconsolidationcausedbyotherreasonsDescriptionofchangesinscopeofconsolidationcausedbyotherreasons(e.g.,establishmentandliquidationofsubsidiaries)andotherrelevantconditions:
| Nameofentity | Purposefortheestablishment/cancellation | Thewayofchangesinscopeofconsolidation | Impactonoverallperformance |
| He’erCulture(Hainan)Co.,Ltd | Businessneeds | Newin2023 | Notsignificant |
| ShenyangDRJewelrySalesCo.,Ltd | Businessneeds | Newin2023 | Notsignificant |
| LifetimeLoveWeddingPlanning(Shenzhen)Co.,Ltd | Businessneeds | Newin2023 | Notsignificant |
| HappyLovePsychologyResearchCenter(Shenzhen)Co.,Ltd | Businessneeds | Newin2023 | Notsignificant |
| LifetimeLoveWeddingPlanning(Sanya)Co.,Ltd | Businessneeds | Newin2023 | Notsignificant |
| DRLUXURY(SINGAPORE)PTE.LTD. | Businessneeds | Newin2023 | Notsignificant |
| DRLuxuryNetherlandsHoldingB.V. | Businessneeds | Newin2023 | Notsignificant |
| LOVEMONT(MALAYSIA)SDN.BHD. | Businessneeds | Newin2023 | Notsignificant |
| DRLUXURYUSAINC | Businessneeds | Newin2023 | Notsignificant |
| LOVEMONTHONGKONGLIMITED | Businessneeds | Newin2023 | Notsignificant |
| ShangqiuDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
| WuhanDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
| NanchangDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
| HandanDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
| GuangzhouDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
| LangfangDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
FoshanDRJewelryCo.,Ltd
| FoshanDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
| UrumqiDRJewelryCo.,Ltd | Businessadjustments | Canceledin2023 | Notsignificant |
X.Equityinotherentities
1.Equityinsubsidiaries
(1)Compositionofenterprisegroup
Currency:RenminbiYuan
| Nameofthesubsidiary | Registeredcapital | Principaloperationplace | Placeofincorporation | Natureofbusiness | Ownershipinterest(%) | Modeofacquisition | |
| Direct | Indirect | ||||||
| DRGroupCompanyLimited | 30,000,000.001 | HongKong,China | HongKong,China | StoresalesinHongKongandoverseasloosestoneprocurement | 100.00% | Setup | |
| ShanghaiDarryDiamondCo.,Ltd | 5,000,000.00 | Shanghai | Shanghai | MemberofShanghaiDiamondExchange,responsiblefortheprocurementandcustomsdeclarationofoverseasloosestone | 100.00% | Setup | |
| ChongqingDarryJewelryCo.,Ltd | 4,000,000.00 | Chongqing | Chongqing | StoresalesinChongqing | 100.00% | Setup | |
| ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd. | 25,000,000.00 | Shenzhen | Shenzhen | InformationTechnologyServices | 100.00% | Setup | |
| CoupleOnly(Shenzh | 5,000,000.00 | Shenzhen | Shenzhen | Sub-brandcultivation | 100.00% | Setup | |
en)JewelryCo.,Ltd.
| en)JewelryCo.,Ltd. | |||||||
| ShenzhenDarryCommercialManagementServiceCo.,Ltd | 10,000,000.00 | Shenzhen | Shenzhen | Supplychainmanagement,R&Ddesign,customizedproductservicesandrelatedsupportingservices | 100.00% | Setup | |
| DARRYJEWELRY(HK)LIMITED | 1,289,000.002 | HongKong,China | HongKong,China | Sub-brandcultivation | 100.00% | Setup | |
| CoupleOnlyJewelryHongKongCompanyLimited | 10,000,000.003 | HongKong,China | HongKong,China | Sub-brandcultivation | 100.00% | Setup | |
| DRJewelry | 1,000,000.004 | France | France | RegionalsalesinFrance | 100.00% | Setup | |
| He’erCulture(Shenzhen)Co.,Ltd | 10,000,000.00 | Shenzhen | Shenzhen | Creativeplanningservices | 100.00% | Setup | |
| HaoduoDiamond(Shenzhen)Co.,Ltd | 60,000,000.00 | Shenzhen | Shenzhen | Responsiblefordomesticbarestoneprocurement | 100.00% | Setup | |
| XiamenDRJewelryCo.,Ltd | 1,000,000.00 | Xiamen | Xiamen | StoresalesinXiamen | 100.00% | Setup | |
| ShenyangDRJewelryCo.,Ltd | 1,000,000.00 | Shenyang | Shenyang | StoresalesinShenyang | 100.00% | Setup | |
| TianjinDR | 5,000,000. | Tianjin | Tianjin | Storesale | 100.00% | Setup |
JewelryCo.,Ltd
| JewelryCo.,Ltd | 00 | sinTianjin | |||||
| ChengduDRJewelryCo.,Ltd | 5,000,000.00 | Chengdu | Chengdu | StoresalesinChengdu | 100.00% | Setup | |
| KunmingDRJewelryCo.,Ltd | 5,000,000.00 | Kunming | Kunming | StoresalesinKunming | 100.00% | Setup | |
| ShanghaiDRJewelryCo.,Ltd | 3,000,000.00 | Shanghai | Shanghai | StoresalesinShanghai | 100.00% | Setup | |
| SuzhouZhongzuanDRJewelryCo.,Ltd. | 3,000,000.00 | Suzhou | Suzhou | StoresalesinSuzhou | 100.00% | Setup | |
| JinanDRJewelryCo.,Ltd | 4,000,000.00 | Jinan | Jinan | StoresalesinJinan | 100.00% | Setup | |
| ShenzhenDRJewelryCo.,Ltd | 1,000,000.00 | Shenzhen | Shenzhen | StoresalesinShenzhen | 100.00% | Setup | |
| BeijingZhongzuanDRJewelryCo.,Ltd | 1,000,000.00 | Beijing | Beijing | StoresalesinBeijing | 100.00% | Setup | |
| SuzhouDRJewelryCo.,Ltd. | 1,000,000.00 | Suzhou | Suzhou | StoresalesinSuzhou | 100.00% | Setup | |
| ShenyangDRJewelryAccessoriesCo.,Ltd. | 3,000,000.00 | Shenyang | Shenyang | StoresalesinShenyang | 100.00% | Setup | |
| HangzhouDRJewelryCo.,Ltd. | 5,000,000.00 | Hangzhou | Hangzhou | StoresalesinHangzhou | 100.00% | Setup | |
| BeijingDRJewelryCo.,Ltd | 1,000,000.00 | Beijing | Beijing | StoresalesinBeijing | 100.00% | Setup | |
| WuhanZh | 1,000,000. | Wuhan | Wuhan | Storesale | 100.00% | Setup |
ongzuanDRJewelryCo.,Ltd
| ongzuanDRJewelryCo.,Ltd | 00 | sinWuhan | |||||
| Xi'anDRJewelryCo.,Ltd | 1,000,000.00 | Xi'an | Xi'an | StoresalesinXi'an | 100.00% | Setup | |
| ChengduDRTrueLoveJewelryCo.,Ltd | 1,000,000.00 | Chengdu | Chengdu | StoresalesinChengdu | 100.00% | Setup | |
| NingboDRJewelryCo.,Ltd | 5,000,000.00 | Ningbo | Ningbo | StoresalesinNingbo | 100.00% | Setup | |
| BeijingHuazuanDRJewelryCo.,Ltd | 1,000,000.00 | Beijing | Beijing | StoresalesinBeijing | 100.00% | Setup | |
| ChongqingDRJewelryCo.,Ltd | 4,000,000.00 | Chongqing | Chongqing | StoresalesinChongqing | 100.00% | Setup | |
| HangzhouDRTrueLoveJewelryCo.,Ltd | 5,000,000.00 | Hangzhou | Hangzhou | StoresalesinHangzhou | 100.00% | Setup | |
| HenanDRJewelryCo.,Ltd | 1,000,000.00 | Henan | Henan | StoresalesinHenan | 100.00% | Setup | |
| Xi'anZhongzuanDRJewelryCo.,Ltd | 3,000,000.00 | Xi'an | Xi'an | StoresalesinXi'an | 100.00% | Setup | |
| ZhengzhouDRJewelryCo.,Ltd. | 3,000,000.00 | Zhengzhou | Zhengzhou | StoresalesinZhengzhou | 100.00% | Setup | |
| ShenzhenDRJewelryCo.,Ltd | 1,000,000.00 | Shenzhen | Shenzhen | StoresalesinShenzhen | 100.00% | Setup | |
| ShenzhenDRJewelr | 1,000,000.00 | Shenzhen | Shenzhen | StoresalesinShenz | 100.00% | Setup |
yOrnamentCo.,Ltd
| yOrnamentCo.,Ltd | hen | ||||||
| ChangshaDRJewelryCo.,Ltd. | 5,000,000.00 | Changsha | Changsha | StoresalesinChangsha | 100.00% | Setup | |
| ShanghaiDRJewelryOrnamentCo.,Ltd | 1,000,000.00 | Shanghai | Shanghai | StoresalesinShanghai | 100.00% | Setup | |
| ShanghaiDRJewelrySalesCo.,Ltd | 1,000,000.00 | Shanghai | Shanghai | StoresalesinShanghai | 100.00% | Setup | |
| ZhoukouDRJewelryCo.,Ltd. | 1,000,000.00 | Zhoukou | Zhoukou | StoresalesinZhoukou | 100.00% | Setup | |
| YiwuDRJewelryCo.,Ltd. | 1,000,000.00 | Yiwu | Yiwu | StoresalesinYiwu | 100.00% | Setup | |
| HezeDRJewelryCo.,Ltd. | 1,000,000.00 | Heze | Heze | StoresalesinHeze | 100.00% | Setup | |
| DongguanDRJewelryCo.,Ltd. | 1,000,000.00 | Dongguan | Dongguan | StoresalesinDongguan | 100.00% | Setup | |
| XiningDRJewelryCo.,Ltd | 1,000,000.00 | Xining | Xining | StoresalesinXining | 100.00% | Setup | |
| LinyiDRJewelryCo.,Ltd | 1,000,000.00 | Linyi | Linyi | StoresalesinLinyi | 100.00% | Setup | |
| YinchuanDRJewelryCo.,Ltd | 1,000,000.00 | Yinchuan | Yinchuan | StoresalesinYinchuan | 100.00% | Setup | |
| WeifangDRJewelryCo.,Ltd | 1,000,000.00 | Weifang | Weifang | StoresalesinWeifang | 100.00% | Setup | |
| JiningDRJewelryCo.,Ltd | 1,000,000.00 | Jining | Jining | StoresalesinJining | 100.00% | Setup |
MianyangDRJewelryCo.,Ltd
| MianyangDRJewelryCo.,Ltd | 1,000,000.00 | Mianyang | Mianyang | StoresalesinMianyang | 100.00% | Setup | |
| FuyangDRJewelryCo.,Ltd | 1,000,000.00 | Fuyang | Fuyang | StoresalesinFuyang | 100.00% | Setup | |
| BaodingDRJewelrySalesCo.,Ltd | 1,000,000.00 | Baoding | Baoding | StoresalesinBaoding | 100.00% | Setup | |
| GuiyangDRJewelryCo.,Ltd | 1,000,000.00 | Guiyang | Guiyang | StoresalesinGuiyang | 100.00% | Setup | |
| HaoduoDiamondZhizao(Shenzhen)Co.,Ltd | 10,000,000.00 | Shenzhen | Shenzhen | Roughdiamondcutproduction | 100.00% | Setup | |
| JiaxingDRJewelryCo.,Ltd | 1,000,000.00 | Jiaxing | Jiaxing | StoresalesinJiaxing | 100.00% | Setup | |
| He’erCulture(Hainan)Co.,Ltd | 10,000,000.00 | Sanya | Sanya | Culturalandcreativeservices | 100.00% | Newlysetupinthecurrentyear | |
| ShenyangDRJewelrySalesCo.,Ltd | 10,000,000.00 | Shenzhen | Shenzhen | Jewelryretailbusiness | 100.00% | Newlysetupinthecurrentyear | |
| LifetimeLoveWeddingPlanning(Shenzhen)Co.,Ltd | 10,000,000.00 | Shenzhen | Shenzhen | Weddingplanningservices | 100.00% | Newlysetupinthecurrentyear | |
| HappyLovePsychologyResearchCenter(Shenzhen)Co.,Ltd | 5,000,000.00 | Shenzhen | Shenzhen | Happinessandloverelatedresearchandconsulting | 100.00% | Newlysetupinthecurrentyear | |
| DRLUXU | 10,000,00 | Singapore | Singapore | Responsib | 100.00% | Newlyset |
RY(SINGAPORE)PTE.LTD.
| RY(SINGAPORE)PTE.LTD. | 0.005 | leforoverseasinvestmentandsalesinSingapore | upinthecurrentyear | ||||
| DRLuxuryNetherlandsHoldingB.V. | 100,000.006 | TheNetherlands | TheNetherlands | InvestmentManagement | 100.00% | Newlysetupinthecurrentyear | |
| LOVEMONT(MALAYSIA)SDN.BHD. | 1.007 | Malaysia | Malaysia | RegionalsalesinMalaysia | 100.00% | Newlysetupinthecurrentyear | |
| DRLUXURYUSAINC | 75,000.008 | UnitedStateofAmerica | UnitedStateofAmerica | RegionalsalesintheUnitedStateofAmerica | 100.00% | Newlysetupinthecurrentyear | |
| LifetimeLoveWeddingPlanning(Sanya)Co.,Ltd | 5,000,000.00 | Sanya | Sanya | Weddingplanningservices | 100.00% | Newlysetupinthecurrentyear | |
| LOVEMONTHONGKONGLIMITED | 100,000.009 | HongKong,China | HongKong,China | Overseasloosediamondprocurement | 100.00% | Newlysetupinthecurrentyear |
Note:1.ItisdenominatedinHKD.
2.ItisdenominatedinUSD.
3.ItisdenominatedinHKD.
4.ItisdenominatedinEUR.
5.ItisdenominatedinSGD.
6.ItisdenominatedinEUR.
7.ItisdenominatedinMYR.
8.ItisdenominatedinUSD.
9.ItisdenominatedinUSD.
Descriptionofthereasonwhytheshareholdingproportionheldinsubsidiaryisdifferentfromthevotingrightproportion:
Notapplicable.
ThegroundsforcontrollingtheinvesteesofwhichtheGroupisholdinghalforlessthanhalfofthevotingrights,andthegroundsfornotcontrollingtheinvesteesofwhichtheGroupisholdingmorethanhalfofthevotingrights:
Notapplicable.Forsignificantstructuredentitiesincludedintothescopeofconsolidation,thebasisforcontrol:
Notapplicable.BasisfordeterminingwhethertheCompanyisanagentoraprincipal:
Notapplicable.Otherdescriptions:
Notapplicable.XI.Governmentgrants
1.Governmentgrantsrecognizedatamountsreceivableattheendofthereportingperiod
□Applicable?Notapplicable
Reasonsforfailingtoreceivetheestimatedamountofgovernmentgrantsattheestimatedtimepoint
□Applicable?Notapplicable
2.Liabilityitemsrelatingtogovernmentgrants
□Applicable?Notapplicable
3.Governmentgrantsincludedincurrentprofitorloss
?Applicable□Notapplicable
Currency:RenminbiYuan
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Recognizedinotherincome | 17,239,801.74 | 23,433,558.47 |
OtherdescriptionsXII.Financialinstrumentsandrelatedrisks
1.Risksarisingfromfinancialinstruments
(1)Financialinstrumentsbycategory
Carryingamountsofvariousfinancialinstrumentsatthebalancesheetdateareasfollows:
Asat31December2023,financialassetsatfairvaluethroughprofitorlosswereRMB4,841,946,705.07(31
December2022:RMB5,609,891,931.68),mainlylistedinfinancialassetsheldfortrading;financialassetsat
amortizedcostwereRMB1,782,123,891.79(31December2022:RMB1,627,082,032.11),mainlylistedincur
rencyfunds,accountsreceivable,otherreceivables,othercurrentassets,debtinvestments,currentportiono
fnon-currentassets,andothernon-currentassets;financialliabilitiesatfairvaluethroughprofitorlosswere
RMB62,813,557.52(31December2022:nil),mainlylistedinfinancialliabilitiesheldfortrading;financialliabi
litiesatamortizedcostwereRMB510,528,504.23(31December2022:RMB1,089,965,994.99),mainlylisted
inshort-termborrowings,notespayable,accountspayable,otherpayables.
(2)Risksoffinancialinstruments
TheGroupisexposedtovariousfinancialinstrumentrisksinitsday-to-dayactivities,mainlyincludingcreditrisk,liquidityriskandmarketrisk(includingexchangeraterisk).TheGroup'sriskmanagementpoliciesareoutlinedbelow.TheGroupdiversifiestheriskoffinancialinstrumentsthroughappropriatediversificationofinvestmentandbusinessportfolio,andreducestheriskofconcentrationonspecificcounterpartiesbyformulatingappropriateriskmanagementpolicies.Creditrisk
TheGrouptradesonlywithrecognizedandcreditworthythirdparties.AccordingtotheGroup'spolicy,acreditreviewisrequiredforallcustomerswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountsreceivabletoensurethattheGroupdoesnotfacesignificantbaddebtrisks.Thesefinancialinstrumentshavelowcreditriskbecausethecounterpartiesofcurrencyfundsandfinancialassetsheldfortradingarereputablebankswithhighcreditratings.OtherfinancialassetsoftheGroupincludeaccountsreceivable,otherreceivablesandothernon-currentassetswhosecreditriskderivesfromcounterpartydefaultsandwhosemaximumexposureisequaltothecarryingamountoftheseinstruments.SincetheGrouptradesonlywithrecognizedandcreditworthythirdparties,thereisnorequirementforcollateral.Creditriskiscentrallymanagedbyindustry.Asat31December2023,theGrouphadaspecificcreditriskconcentrationand66.76%oftheGroup'saccountsreceivable(31December2022:73.07%)wereshoppingmallsthatcollectedordersontheirbehalf.DeterminationofsignificantincreaseincreditriskAteachbalancesheetdate,theGroupassesseswhetherthecreditriskontherelevantfinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.Definitionofcredit-impairedfinancialassetsTheGroup'smaincriterionfordeterminingthatcreditimpairmenthasoccurredisthatthenumberofdayspastdueexceeds90days.However,insomecases,ifinternalorexternalinformationindicatesthatthecontractamountmaynotberecoveredinfullbeforeconsideringanycreditenhancementsheld,theGroupwillalsoconsideritascreditimpairment.Theimpairmentoffinancialassetsmaynotbenecessarilyduetoasinglediscreteevent,thecombinedeffectsofmultipleeventsmayresultinfinancialassetsbeingcredit-impaired.Liquidityrisk
TheGroup'sobjectiveistouseavarietyoffinancinginstrumentstomaintainabalancebetweenthecontinuityandflexibilityoffinancing.TheGroupfinancesitsoperationsthroughfundsfromoperationsandborrowings.Asat31December2023,theGrouphadnodebtmaturingformorethan1year(31December2022:nil).
ThetablesbelowsummarizethematurityprofileoftheCompany’sfinancialliabilitiesandleaseliabilitiesbasedonundiscountedcontractualcashflows:
Financialliabilitiesandleaseliabilities2023
Within1year
| Within1year | 1-3years | 3-5years | Over5years | Total | |
| Short-termborrowings | 390,632,777.14 | - | - | - | 390,632,777.14 |
| Notespayable | 47,986,785.70 | - | - | - | 47,986,785.70 |
| Accountspayable | 28,164,899.34 | - | - | - | 28,164,899.34 |
| Otherpayables | 44,381,542.05 | - | - | - | 44,381,542.05 |
| Provisions | 10,178,765.00 | 3,056,709.00 | 380,508.00 | 13,615,982.00 | |
| Currentportionofnon-currentliabilities | 201,537,017.35 | - | - | - | 201,537,017.35 |
| Leaseliabilities | - | 56,118,094.107 | 13,994,560.27 | 70,112,654.37 | |
| Total | 722,881,786.58 | 59,174,803.10 | 14,375,068.27 | 796,431,657.95 |
2022
| Within1year | 1-3years | 3-5years | Over5years | Total | |
| Short-termborrowings | 433,993,449.44 | - | - | - | 433,993,449.44 |
| Notespayable | 466,527,730.97 | - | - | - | 466,527,730.97 |
Accountspayable
| Accountspayable | 86,880,869.77 | - | - | - | 86,880,869.77 |
| Otherpayables | 102,563,944.81 | - | - | - | 102,563,944.81 |
| Provisions | 7,025,902.00 | 5,636,047.50 | 2,263,200.00 | 1,079,100.00 | 16,004,249.50 |
| Currentportionofnon-currentliabilities | 351,516,900.54 | - | - | - | 351,516,900.54 |
| Leaseliabilities | - | 256,890,726.07 | 17,947,797.81 | 1,703,640.35 | 276,542,164.23 |
| Total | 1,448,508,797.53 | 262,526,773.57 | 20,210,997.81 | 2,782,740.35 | 1,734,029,309.26 |
CurrencyriskTheGroupisexposedtotransactionalexchangerateriskresultingfromsalesorpurchasesmadebybusinessunitsincurrenciesotherthantheirfunctionalcurrency.InFY2023,approximately0.55%(2022:0.18%)oftheGroup'ssalesweredenominatedincurrenciesotherthanthefunctionalcurrencyofbusinessunitsinwhichthesalesoccurred,whileapproximately0.61%(2022:0.22%)ofthecostwasdenominatedincurrenciesotherthanthefunctionalcurrencyofbusinessunits.TheGroupdoesnotengageinforeignexchangehedging.ThetablebelowprovidesasensitivityanalysisofexchangerateriskandreflectstheimpactofpotentialreasonablechangesinUSD,EURandHKDexchangeratesonnetprofitorloss(duetochangesinthefairvalueofmonetaryassetsandmonetaryliabilities)andothercomprehensiveincome/(loss),netoftax,undertheassumptionthatallothervariablesremainunchanged.
2023
ChangeinUSD
rate
| ChangeinUSDrate | Netprofit/loss | Netothercomprehensiveincomeaftertax | Totalshareholders’equity | |
| Increase/(decrease) | Increase/(decrease) | Increase/(decrease) | Increase/(decrease) | |
| IfRMBweakensagainstUSD | 3% | 185,141.01 | - | 185,141.01 |
| IfRMBstrengthensagainstUSD | (3%) | (185,141.01) | - | (185,141.01) |
2022
| ChangeinUSDrate | Netprofit/loss | Netothercomprehensiveincomeaftertax | Totalshareholders’equity | |
| Increase/(decrease) | Increase/(decrease) | Increase/(decrease) | Increase/(decrease) | |
| IfRMBweakensagainstUSD | 3% | 1,233,808.76 | - | 1,233,808.76 |
| IfRMBstrengthensagainstUSD | (3%) | (1,233,808.76) | - | (1,233,808.76) |
1.Capitalmanagement
TheprimaryobjectivesoftheGroup’scapitalmanagementaretosafeguardtheGroup’sabilitytocontinueasagoingconcernandtomaintainhealthycapitalratiosinordertosupportitsbusinessandmaximizeshareholders’value.TheGroupmanagesandadjustsitscapitalstructureinresponsetochangesintheeconomicsituationandtheriskcharacteristicsoftheunderlyingassets.Tomaintainoradjustthecapitalstructure,theGroupmayadjustthedividendpaymenttoshareholdersorissuenewshares.TheGroupisnotboundbyanyexternallyimposedcapitalrequirements.In2023and2022,thecapitalmanagementobjectives,policiesorproceduresremainunchanged.TheGroupmonitorscapitalusingthedebt-to-assetratio,whichistotalliabilitiesdividedbytotalassets.ItistheGroup'spolicytomaintainareasonabledebt-to-assetratio.TheGroup’sdebt-to-assetratioatthebalancesheetdateisasfollows:
2023
| 2023 | 2022 | |
| Totalassets | 7,530,082,307.45 | 8,815,748,380.27 |
| Totalliabilities | 1,057,444,465.49 | 2,012,702,176.31 |
| Debt-to-assetratio | 14.04% | 22.83% |
XIII.Disclosureoffairvalue
1.Closingbalanceofassetsandliabilitiesmeasuredatfairvalue
Currency:RenminbiYuan
| Items | Closingbalance | |||
| FairvaluemeasurementswithinLevel1 | FairvaluemeasurementswithinLevel2 | FairvaluemeasurementswithinLevel3 | Total | |
| I.Recurringfairvaluemeasurements | -- | -- | -- | -- |
| (I)Financialassetsheldfortrading | 4,841,946,705.07 | 4,841,946,705.07 | ||
| 1.Financialassetsatfairvaluethroughprofitorloss | 4,841,946,705.07 | 4,841,946,705.07 | ||
| Totalassetsmeasuredatfairvalueonarecurringbasis | 4,841,946,705.07 | 4,841,946,705.07 | ||
| (VII)Financialliabilitiesdesignatedasbeingmeasuredatfairvalueandsubjecttocurrentgainsandlosses | 62,813,557.52 | 62,813,557.52 | ||
| Totalliabilitiesmeasuredatfairvalueonarecurringbasis | 62,813,557.52 | 62,813,557.52 | ||
| II.Non-recurringfairvaluemeasurements | -- | -- | -- | -- |
2.Basisofdeterminingthemarketpricesofrecurringandnon-recurringmeasurementswithinLevel1
ThefinancialliabilitiesatfairvaluethroughprofitorlossrefertothephysicalgoldleasedbytheCompanyfrombanks,andthereisanactivemarketforgold(i.e.,ShanghaiGoldExchange),andtheShanghaiGoldExchangepublishestheclosingpriceofgoldcontracttransactionsoneachtradingday.Attheendofthereporti
ngperiod,theCompanydeterminesthemarketpricebasedontheclosingpriceofgoldcontracttransactionspublishedbyShanghaiGoldExchangeonthesamedayorthelatestprevioustradingday.
3.Qualitativeandquantitativeinformationonthevaluationtechniquesusedandsignificantparameter
sinrecurringandnon-recurringmeasurementswithinLevel2Financialassetsatfairvaluethroughprofitorlossarebankfinancialproductswithfairvaluedeterminedusingexpectedfuturecashflowsexpectedtobeavailableinthemarketanddiscountedataninterestratedeterminedbasedonthebestestimateoftheexpectedlevelofrisk.
4.Qualitativeandquantitativeinformationonthevaluationtechniquesusedandsignificantparameter
sinrecurringandnon-recurringmeasurementswithinLevel3Norecurringandnon-recurringmeasurementswithinLevel3attheendofthereportingperiod.
5.ReconciliationinformationbetweenopeningandclosingcarryingamountsandsensitivityanalysisofunobservableparametersinrecurringmeasurementswithinLevel3Notapplicable
6.Foritemsmeasuredatfairvalueonarecurringbasis,disclosetheamountsofanytransfersbetweendifferentlevelsofthefairvaluehierarchy,thereasonsforthosetransfersandthepolicyfordeterminingwhentransfersbetweenlevelsaredeemedtohaveoccurred.Notransfersbetweendifferentlevelsoccurredduringthereportingperiod.
7.ChangesinvaluationtechniquesthatoccurredduringtheperiodandthereasonsforthechangesNovaluationtechniquesoccurredduringthereportingperiod.
8.Fairvalueoffinancialassetsandfinancialliabilitiesthatarenotmeasuredatfairvalue
TheCompanyhasassesseditscurrencyfunds,accountsreceivable,otherreceivables,othercurrentassets,notespayable,accountspayableandotherpayablesandthefairvalueisinlinewiththecarryingamountduetotheshortremainingperiod.
9.OthersXIV.Relatedpartyrelationshipsandtransactions
1.Parent
Nameoftheparent
| Nameoftheparent | Placeofincorporation | Natureofbusiness | Registeredcapital | ProportionofownershipinterestintheCompany(%) | ProportionofvotingpowerintheCompany(%) |
| DRInvestment(Zhuhai)Co.,Ltd. | Zhuhai | Businessmanagementconsulting,businessinformationconsulting,investmentmanagement,etc. | RMB50,000,000.00 | 85.50% | 85.50% |
InformationabouttheparentTheparent“ShenzhenDRInvestmentCo.,Ltd.”changeditsnametothecurrent“DRInvestment(Zhuhai)Co.,Ltd.”inJanuary2022.
TheultimatecontrollingpartyoftheCompanyisMr.ZhangGuotaoandMrs.LuYiwen.Otherdescriptions:
2.Subsidiary
InformationaboutthesubsidiariesoftheCompanyisdisclosedinNoteX.1.
3.Otherrelatedparties
Name
| Name | Relatedpartyrelationships |
| LuYiwen | TheactualcontrolleroftheCompany |
| ZhangGuotao | TheactualcontrolleroftheCompany |
| ShenzhenEveryYearTravelPhotographyCultureCo.,Ltd. | Awholly-ownedsubsidiaryofDRInvestment,theCompany'scontrollingshareholder;AnenterpriseindirectlycontrolledbytheactualcontrollersZhangGuotaoandLuYiwen |
| Director,generalmanagerandotherseniormanagementoftheCompany | KeymanagementpersonneloftheCompany |
Otherdescriptions:
4.Relatedpartytransactions
(1)LeasesbyrelatedpartiesTheCompanyasalessor:
Currency:RenminbiYuan
| Nameoflessee | Typeofleasedassets | Rentalincomerecognizedforthecurrentperiod | Rentalincomerecognizedforthepriorperiod |
TheCompanyasalessee:
Currency:RenminbiYuan
| Nameoflessor | Typeofleasedassets | Simplificationofrentalexpensesforshort-termleasesandlow-valueassetleases(ifapplicable) | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(ifapplicable) | Rentalpayment | Interestexpenseonleaseliabilitiesincurred | Increaseinright-of-useasset | |||||
| Amountforthecurrentperiod | Amountforthepriorperiod | Amountforthecurrentperiod | Amountforthepriorperiod | Amountforthecurrentperiod | Amountforthepriorperiod | Amountforthecurrentperiod | Amountforthepriorperiod | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| DRInvestment(Z | Operatingleases | 84,046.00 | 2,070.30 | ||||||||
huhai)Co.,Ltd.
Note:
InDecember2019,ShenzhenDarryCommercialManagementServicesCo.,Ltd.enteredintoanoperatingleaseagreementwithDRInvestment(Zhuhai)Co.,Ltd.(formerlyknownasShenzhenDRInvestmentCo.,Ltd.)atthemarketprice,withatotalleasecostofRMB1,539,077.98,theoriginalleaseperiodwasfrom13December2019to31December2022.Earlyterminationoftheleasedasseton28February2022bymakingscheduledrentalpayments.
(2)Compensationofkeymanagementpersonnel
Currency:RenminbiYuan
huhai)Co.,Ltd.Items
| Items | Amountforthecurrentperiod | Amountforthepriorperiod |
| Compensationofkeymanagementpersonnel | 12,556,600.01 | 13,606,393.29 |
| Including:share-basedpaymentexpenses | 367,807.31 | 356,652.33 |
XV.Share-basedpayment
1.Summary?Applicable□Notapplicable
Currency:RenminbiYuan
| Categoryofrecipient | Equityinstrumentsgrantedincurrentperiod | Equityinstrumentsexercisedincurrentperiod | Equityinstrumentsunlockedincurrentperiod | Equityinstrumentswhichbecameinvalidincurrentperiod | ||||
| Number | Amount | Number | Amount | Number | Amount | Number | Amount | |
| Managementpersonnel | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 288,000.00 | 516,361.18 |
| Total | 288,000.00 | 516,361.18 | ||||||
StockoptionsorotherequityinstrumentsissuedandoutstandingbytheCompanyatendofperiod?Applicable□Notapplicable
| Categoryofrecipient | StockoptionsissuedandoutstandingbytheCompanyatendofperiod | OtherequityinstrumentsissuedandoutstandingbytheCompanyatendofperiod | ||
| Rangeofexerciseprices | Remainingtermofthecontract | Rangeofexerciseprices | Remainingtermofthecontract | |
| Sales,ManagementandR&Dpersonnel | RMB1.67 | 0-0.89years | ||
Otherdescriptions:
(1)FirstequityincentiveschemeOn18January2017,theCompanyapprovedthe“ShenzhenDarryJewelryCo.,Ltd.EquityIncentivescheme”(the“Incentivescheme”)througharesolutionoftheshareholders’meeting,andtheCompany'sfirstequityincentiveschemegrantedtheCompanythenumberofrestrictedsharesto15incentiverecipientsthroughtheGongqingchengWendyNo.1InvestmentManagementPartnership(LimitedPartnership),theGongqingchengWendyNo.2InvestmentManagementPartnership(LimitedPartnership)andtheGongqingchengWendyNo.3InvestmentManagementPartnership(LimitedPartnership)1,150,000shares(aftertheCompany’sconversionintoajointstockcompany,thenumberofrestrictedsharesbecame4,140,000shares).Subsequently,theCompanysignedanequitygrantnoticewiththeincentiverecipientson20November2017,andthetermsandconditionsoftheagreementbetweentheenterpriseandtheemployeesonthesharepaymenthavebeenagreed,sothegrantpriceisRMB1.67pershare(whichhasbeenadjustedinproportiontothenumberofsharesaftertheCompany’sconversionintoajointstockcompany)with20November2017asthegrantdate.GongqingchengWendyNo.1InvestmentManagementPartnership(LimitedPartnership),GongqingchengWendyNo.2InvestmentManagementPartnership(LimitedPartnership)andGongqingchengWendyNo.3InvestmentManagementPartnership(LimitedPartnership)setrestrictiveconditions,thatis,onthelisteddateoftheCompany,theincentiveshareheldbytheincentiverecipientscanmeetthefeasiblerightsconditionsstipulatedintheincentivescheme,andtheCompany’ssharesheldbytheincentiverecipientsshallnotbetransferredwithinoneyearfromthedateoflistingontheShenzhenStockExchange.Share-basedpaymentexpensesforrestrictedstockgrantedunderthefirstequityincentiveschemewerefullyrecognizedin2021.
(2)SecondequityincentiveschemeOn20November2019,theCompanyapprovedthe“DRCorporationLimitedEquityIncentivescheme”throughtheresolutionofthesecondextraordinarygeneralmeetingofshareholdersin2019,andtheCompany’ssecondequityincentiveschemegranted2,412,000restrictedsharesoftheCompanyto12incentiverecipientsthroughtheGongqingchengWendyNo.1InvestmentManagementPartnership(LimitedPartnership)andtheGongqingchengWendyNo.2InvestmentManagementPartnership(LimitedPartnership),with20November2019asthegrantdate.ThegrantpriceisRMB1.67pershare.GongqingchengWendyNo.1InvestmentManagementPartnership(LimitedPartnership)andKomsomolskWendyNo.2InvestmentManagementPartnership(LimitedPartnership)setrestrictiveconditions,thatis,after5yearsfromthegrantdate,theincentiveshareheldbytheincentiverecipientscanmeetthefeasiblerightconditionsstipulatedintheincentivescheme,andtheCompany’ssharesheldbytheincentiverecipientscannotbetransferredwithinthreeyearsfromthedateoflistingontheShenzhenStockExchange.Thesecondequityincentiveschemeon20November2019alsostipulatesthatthisincentiveschemeisapplicabletotherecipientsofthefirstequityincentivescheme.Thischangeextendstheserviceperiodofthefirstequityincentiverecipients,whichisnotconducivetothechangeofincentiverecipients,sotheCompanystillrecognizesshare-basedpaymentexpensesforthefirstequityincentiveschemeinaccordancewiththefeasibleconditionsbeforetheamendment.
(3)ModificationofthesecondequityincentiveschemeandnewlygrantedrestrictedstockOn11March2020,theCompanypassedtheresolutionofthesecondextraordinarygeneralmeetingofshareholdersin2020,approvingtheamendmentofthesecondequityincentivescheme“DRCorporationLimitedEquityIncentiveScheme”,whichaddedthatinthecaseoftheincentiverecipientsleavingtheCompanywithin5yearsandtheCompanyhasbeenlisted,theincentiveshareheldbytheincentiverecipientsvestingafteryearsofservicesincethegrantdatemeetsthefeasiblerightconditions.Subjecttothefactthattheconditionsforlistingwithin5yearsoftheCompanycanbemet,theamendmentactsasanumberofseparateshare-basedpaymentschemes,recognizingshare-basedpaymentexpensesduringtheirrespectivevestingperiods.Atthesametime,pursuanttotherevisedsecondequityincentivescheme,theGroupgranted810,000newrestrictedsharestotwoincentiverecipientsthroughGongqingchengWendyNo.1InvestmentManagementPartnership(LimitedPartnership)on11March2020atagrantpriceofRMB1.67pershare.On14June2023and26July2023,twoincentiverecipientsoftheoriginalsecondequityincentiveschemelefttheCompany,andtherecognizedshare-basedpaymentexpenseofRMB516,361.18wasreversedin2023.BasedonthefairvalueofrestrictedstockatthetimeofgrantandtheestimatedexercisedateandturnoverrateassessedbythevaluationfirmengagedbytheCompanyaccordingtotheincomemethod,thetotalshare-basedpaymentexpensesrecognizedforthesecondequityincentiveschemein2023andthenewlygrantedrestrictedstockareRMB187,422.35(2022:RMB561,317.20).
2.Equity-settledshare-basedpayments
?Applicable□Notapplicable
Currency:RenminbiYuan
Methodologyfordeterminingthefairvalueofequityinstrumentsatthegrantdate
| Methodologyfordeterminingthefairvalueofequityinstrumentsatthegrantdate | Incomemethod |
| Significantparametersfordeterminingthefairvalueofequityinstrumentsatthegrantdate | Expectedincomegrowthrate,perpetualgrowthrateanddiscountrate |
| Basisfordeterminingthenumberofexercisableequityinstruments | Bestestimateofthenumberofequityinstrumentsexpectedtovest |
| Reasonsformaterialdifferencesbetweenthecurrentandpriorperiodestimates | Nil |
| Accumulatedamountchargedtocapitalreserveforequity-settledshare-basedpayments | 26,531,541.32 |
| Totalexpensesrecognizedforequity-settledshare-basedpaymentsduringthecurrentperiod | 187,422.35 |
Otherdescriptions:
3.Cash-settledshare-basedpayments
□Applicable?Notapplicable
4.Share-basedpaymentexpenses
?Applicable□Notapplicable
Currency:RenminbiYuan
Categoryofrecipient
| Categoryofrecipient | Equity-settledshare-basedpaymentexpenses | Cash-settledshare-basedpaymentexpenses |
| Managementpersonnel | 187,422.35 | |
| Total | 187,422.35 |
Otherdescriptions:
5.Modificationandterminationofshare-basedpayments
NoneXVI.Commitmentsandcontingencies
1.Significantcommitments
Significantcommitmentsexistingasatthebalancesheetdate
Asatthedateofapprovalofthesefinancialstatements,theGrouphadnocommitmentsrequiredtobediscl
osed.
2.Contingencies
(1)Materialcontingenciesexistingasatthebalancesheetdate
Asatthedateofapprovalofthesefinancialstatements,theGrouphadnocontingenciesrequiredtobediscl
osed.
(2)TostatethattheCompanyhasnomaterialcontingenciesrequiredtobedisclosed
TheGrouphadnomaterialcontingenciesrequiredtobedisclosed.
3.OthersXVII.Othersignificantevents
1.Segmentinformation
(1)Determinationbasisandaccountingpoliciesofreportingsegments
(2)Summarizedfinancialinformationofreportingsegment
Currency:RenminbiYuan
| Item | Eliminationamongsegments | Total |
(3)Reasonsshouldbeprovidedwhereacompanyhasnoreportingsegmentsorisunabletodiscloset
hetotalassetsandtotalliabilitiesofeachreportingsegment
ThemanagementoftheGroupconsiderstheinternalorganizationalstructure,managementrequirementsan
dinternalreportingsystemandotheraspectstobelievethatthebusinessesofthecompaniesintheGrouph
aveobvioussimilarities,allofwhichareinthejewelryretailindustry.ManagementregularlyreviewstheGro
up'soverallfinancialstatementsforresourceallocationandperformanceevaluation,andasaresult,accordi
ngtoAccountingStandardforBusinessEnterprisesNo.35-SegmentReporting,theGroup'soperationscon
stituteasingleoperatingsegmentandnosegmentreportinginformationisprepared.
(4)Otherdescriptions
Informationonproductsandservices
Incomefromexternaltransactions
Currency:RenminbiYuan
2023
| 2023 | 2022 | |
| Engagementdiamondrings | 1,699,139,354.11 | 2,902,464,272.49 |
| Weddingdiamondrings | 449,380,892.69 | 713,611,440.73 |
| Otheraccessories | 25,236,788.59 | 34,105,640.81 |
| Otherbusiness | 6,520,708.61 | 31,393,058.65 |
| Total | 2,180,277,744.00 | 3,681,574,412.68 |
GeographicinformationTheGroup'sgeographicaldivisionisrelativelyconcentrated,and99.64%oftheexternaltransactionincomewasattributabletotheChinesemainlandregionin2023(2022:99.80%);Asat31December2023,99.85%ofnon-currentassetswereattributabletotheChinesemainlandregion(31December2022:99.83%).InformationaboutmajorcustomersTheGroup'scustomersarerelativelyfragmentedandthereisnosinglecustomerwithmorethan10%oftheGroup'stransactionvolume.XVIII.NotestokeyitemsoftheCompany’sfinancialstatements
1.Accountsreceivable
(1)Disclosedbyaging
Currency:RenminbiYuan
| Aging | Closingoutstandingbalance | Openingoutstandingbalance |
| Within1year,inclusive | 109,571,866.94 | 87,242,136.25 |
| 1to2years | 659,976.99 | 2,359,626.25 |
| Total | 110,231,843.93 | 89,601,762.50 |
(2)Disclosedbymethodofdeterminingprovisionforcreditlosses
Currency:RenminbiYuan
Category
| Category | Closingbalance | Openingbalance | ||||||||
| Outstandingbalance | Impairmentallowance | Carryingamount | Outstandingbalance | Impairmentallowance | Carryingamount | |||||
| Amount | Percentage | Amount | Provisionratio(%) | Amount | Percentage | Amount | Provisionratio(%) | |||
| Accountsreceivableforwhichimpairmentallowanceisindividuallyassessed | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 1,476,671.46 | 1.65% | 1,476,671.46 | 100.00% | 0.00 |
| Including: | ||||||||||
| MallA | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 1,476,671.46 | 1.65% | 1,476,671.46 | 100.00% | 0.00 |
| Accountsreceivableforwhichimpairmentallowanceiscollectivelyassessed | 110,231,843.93 | 100.00% | 2,997,697.80 | 2.72% | 107,234,146.13 | 88,125,091.04 | 98.35% | 3,527,062.57 | 4.00% | 84,598,028.47 |
| Including: | ||||||||||
| Amountsduefromsubsidiaries | 31,063,668.50 | 28.18% | 0.00 | 0.00% | 31,063,668.50 | 2,071,189.38 | 2.31% | 0.00 | 0.00% | 2,071,189.38 |
| AccountsreceivablefromPOSmachinesande-commerceplatforms | 28,153,043.64 | 25.54% | 0.00 | 0.00% | 28,153,043.64 | 21,471,639.56 | 23.96% | 0.00 | 0.00% | 21,471,639.56 |
| Accountsreceivablefromthemall | 51,015,131.79 | 46.28% | 2,997,697.80 | 5.88% | 48,017,433.99 | 64,582,262.10 | 72.08% | 3,527,062.57 | 5.46% | 61,055,199.53 |
| Total | 110,231,843.93 | 100.00% | 2,997,697.80 | 2.72% | 107,234,146.13 | 89,601,762.50 | 100.00% | 5,003,734.03 | 5.58% | 84,598,028.47 |
Impairmentallowancewhichisindividuallyassessed:0
Currency:RenminbiYuan
Name
| Name | Openingbalance | Closingbalance | ||||
| Outstandingbalance | Impairmentallowance | Outstandingbalance | Impairmentallowance | Provisionratio(%) | Reasonsforprovision | |
| MallA | 1,476,671.46 | 1,476,671.46 | 0.00 | 0.00 | 0.00% | |
| Total | 1,476,671.46 | 1,476,671.46 | 0.00 | 0.00 | ||
Impairmentallowancewhichiscollectivelyassessed:2,997,697.80
Currency:RenminbiYuan
| Name | Closingbalance | ||
| Outstandingbalance | Impairmentallowance | Provisionratio(%) | |
| Accountsreceivablefromthemall | 51,015,131.79 | 2,997,697.80 | 5.88% |
| Total | 51,015,131.79 | 2,997,697.80 | |
Descriptionofthebasisfordeterminingthecollectiveassessment:
ImpairmentallowancebasedoncreditriskcharacteristicsIftheGrouprecognizesimpairmentallowancebasedonthegeneralmodelofECLs:
□Applicable?Notapplicable
(3)Impairmentallowancerecognized,recoveredorreversedforthecurrentperiodImpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
| Category | Openingbalance | Changesfortheperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Write-offs | Others | |||
| Accountsreceivablefromthemall | 5,003,734.03 | 2,997,697.80 | 5,003,734.03 | 0.00 | 0.00 | 2,997,697.80 |
| Total | 5,003,734.03 | 2,997,697.80 | 5,003,734.03 | 0.00 | 0.00 | 2,997,697.80 |
Including:significantrecoveryorreversalofimpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
Nameofentity
| Nameofentity | Amountrecoveredorreversed | Reasonforreversal | Methodsforreversal | Thebasisandrationalityofdeterminingtheratiofororiginalimpairmentallowance |
| MallA | 1,476,671.46 | Notapplicable | Recoveryincurrency | Itisnotexpectedtoberecoveredbecausethemallhasbeeninarrearsforalongtime. |
| Total | 1,476,671.46 |
(4)Thetop5largestaccountsreceivableandcontractassetsatendofperiodcategorizedbydebtor
Currency:RenminbiYuan
| Nameofentity | Closingbalanceofaccountsreceivable | Closingbalanceofcontractassets | Closingbalanceofaccountsreceivableandcontractassets | Proportionoftotalclosingbalanceofaccountsreceivableandcontractassets | Closingbalanceofimpairmentofaccountsreceivableandcontractassets |
| No.1 | 12,459,151.76 | 0.00 | 12,459,151.76 | 11.30% | 0.00 |
| No.2 | 6,279,055.21 | 0.00 | 6,279,055.21 | 5.70% | 0.00 |
| No.3 | 5,451,977.15 | 0.00 | 5,451,977.15 | 4.95% | 0.00 |
| NO.4 | 4,261,580.43 | 0.00 | 4,261,580.43 | 3.87% | 0.00 |
| No.5 | 2,736,504.30 | 0.00 | 2,736,504.30 | 2.48% | 147,728.12 |
| Total | 31,188,268.85 | 0.00 | 31,188,268.85 | 28.30% | 147,728.12 |
2.Otherreceivables
Currency:RenminbiYuan
| Item | Closingoutstandingbalance | Openingoutstandingbalance |
| Dividendsreceivable | 96,000,000.00 | 131,000,000.00 |
| Otherreceivables | 128,498,084.63 | 139,167,536.46 |
| Total | 224,498,084.63 | 270,167,536.46 |
(1)Dividendsreceivable
1)Categoryofdividendsreceivable
Currency:RenminbiYuan
| Item(orinvestee) | Closingbalance | Openingbalance |
ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd.
| ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd. | 81,000,000.00 | 0.00 |
| ShenzhenDarryCommercialManagementServiceCo.,Ltd | 15,000,000.00 | 31,000,000.00 |
| He’erCulture(Shenzhen)Co.,Ltd | 0.00 | 100,000,000.00 |
| Total | 96,000,000.00 | 131,000,000.00 |
2)Significantdividendsreceivableagedover1year
Currency:RenminbiYuan
| Item(orinvestee) | Closingbalance | Aging | Reasonsfornotbeingrecovered | Impairmentornotandbasisforjudgment |
3)Disclosedbymethodofdeterminingprovisionforcreditlosses
□Applicable?Notapplicable
(2)Otherreceivables
1)Otherreceivablescategorizedbynature
Currency:RenminbiYuan
| Nature | Closingbalance | Openingbalance |
| Amountsduefromsubsidiaries | 124,899,102.54 | 132,210,236.41 |
| Socialinsurancesandhousingfundbornebyemployees | 2,671,188.70 | 4,697,357.08 |
| Temporaryloansforemployees | 295,945.15 | 1,337,667.07 |
| Others | 2,536,848.24 | 2,827,275.90 |
| Total | 130,403,084.63 | 141,072,536.46 |
2)Disclosedbyaging
Currency:RenminbiYuan
| Aging | Closingoutstandingbalance | Openingoutstandingbalance |
| Within1year,inclusive | 128,498,084.63 | 139,167,536.46 |
| 1to2years | 0.00 | 1,905,000.00 |
| 2to3years | 1,905,000.00 | 0.00 |
| Total | 130,403,084.63 | 141,072,536.46 |
3)Disclosedbymethodofdeterminingprovisionforcreditlosses
Currency:RenminbiYuan
Catego
ry
| Category | Closingbalance | Openingbalance | ||||||||
| Outstandingbalance | Impairmentallowance | Carryingamount | Outstandingbalance | Impairmentallowance | Carryingamount | |||||
| Amount | Percentage | Amount | Provisionratio(%) | Amount | Percentage | Amount | Provisionratio(%) | |||
| Impairmentallowancewhichisindividuallyassessed | 1,905,000.00 | 100.00% | 1,905,000.00 | 100.00% | 0.00 | 1,905,000.00 | 100.00% | 1,905,000.00 | 100.00% | 0.00 |
| Including: | ||||||||||
| Impairmentallowancewhichiscollectivelyassessed | 128,498,084.63 | 100.00% | 0.00 | 0.00% | 128,498,084.63 | 139,167,536.46 | 100.00% | 0.00 | 0.00% | 139,167,536.46 |
| Including: | ||||||||||
| Total | 130,403,084.63 | 100.00% | 1,905,000.00 | 1.46% | 128,498,084.63 | 141,072,536.46 | 100.00% | 1,905,000.00 | 1.35% | 139,167,536.46 |
Impairmentallowancewhichisindividuallyassessed:
Currency:RenminbiYuan
| Name | Openingbalance | Closingbalance | ||||
| Outstandingbalance | Impairmentallowance | Outstandingbalance | Impairmentallowance | Provisionratio(%) | Reasonsforprovision | |
| CompanyA | 1,905,000.00 | 1,905,000.00 | 1,905,000.00 | 1,905,000.00 | 100.00% | Itisnotexpectedtoberecoveredduetodeteriorati |
ngoperationconditionofthecounterparty.
| ngoperationconditionofthecounterparty. | ||||||
| Total | 1,905,000.00 | 1,905,000.00 | 1,905,000.00 | 1,905,000.00 |
IftheGrouprecognizesimpairmentallowancebasedonthegeneralmodelofECLs:
Currency:RenminbiYuan
| Impairmentallowance | Stage1 | Stage2 | Stage3 | Total |
| 12-monthECLs | LifetimeECLs(Notcredit-impaired) | LifetimeECLs(Credit-impaired) | ||
| Balanceat31December2023 | 1,905,000.00 | 1,905,000.00 | ||
| Balanceat1January2023providedinthecurrentperiod | ||||
| Balanceat31December2023 | 1,905,000.00 | 1,905,000.00 |
BasisforthedivisionofeachstageandprovisionratioforimpairmentallowanceChangesinoutstandingbalancewithsignificantchangesintheamountoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
4)Impairmentallowancerecognized,recoveredorreversedforthecurrentperiodImpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
| Category | Openingbalance | Changesfortheperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Reversalorwrite-off | Others | |||
| Impairmentallowanceforotherreceivables | 1,905,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,905,000.00 |
| Total | 1,905,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,905,000.00 |
Including:significantreversalorrecoveryofimpairmentallowanceforthecurrentperiod:
Currency:RenminbiYuan
Nameofentity
| Nameofentity | Amountrecoveredorreversed | Reasonforreversal | Methodsforreversal | Thebasisandrationalityofdeterminingtheoriginalratioforimpairmentallowance |
5)Thetop5largestotherreceivablesatendofperiodcategorizedbydebtor
Currency:RenminbiYuan
| Nameofentity | Nature | Closingbalance | Aging | Proportionoftotalclosingbalanceofotherreceivables | Closingbalanceofimpairmentallowance |
| No.1 | Amountsduefromsubsidiaries | 88,165,382.48 | Within1year | 67.61% | 0.00 |
| No.2 | Amountsduefromsubsidiaries | 22,275,150.38 | Within1year | 17.08% | 0.00 |
| No.3 | Amountsduefromsubsidiaries | 7,015,514.31 | Within1year | 5.38% | 0.00 |
| No.4 | Amountsduefromsubsidiaries | 4,158,763.69 | Within1year | 3.19% | 0.00 |
| No.5 | Amountsduefromsubsidiaries | 1,750,180.83 | Within1year | 1.34% | 0.00 |
| Total | 123,364,991.69 | 94.60% | 0.00 |
3.Long-termequityinvestments
Currency:RenminbiYuan
| Item | Closingbalance | Openingbalance | ||||
| Outstandingbalance | Provisionforimpairment | Carryingamount | Outstandingbalance | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 201,935,477.77 | 201,935,477.77 | 207,935,477.77 | 207,935,477.77 | ||
| Total | 201,935,477.77 | 201,935,477.77 | 207,935,477.77 | 207,935,477.77 | ||
(1)Investmentsinsubsidiaries
Currency:RenminbiYuan
Investee
| Investee | Openingbalance(carryingamount) | Openingbalanceofprovisionforimpairment | Changesforthecurrentperiod | Closingbalance(carryingamount) | Closingbalanceofprovisionforimpairment | |||
| Additions | Reductions | Provisionforimpairment | Others | |||||
| ShanghaiDarryDiamondCo.,Ltd | 5,000,000.00 | 5,000,000.00 | ||||||
| ChongqingDarryJewelryCo.,Ltd | 4,000,000.00 | 4,000,000.00 | ||||||
| ShenzhenLoveOnlyAICloudTechnologyCo.,Ltd. | 25,000,000.00 | 25,000,000.00 | ||||||
| CoupleOnly(Shenzhen)JewelryCo.,Ltd. | 5,000,000.00 | 5,000,000.00 | ||||||
| ShenzhenDarryCommercialManagementServiceCo.,Ltd | 10,000,000.00 | 10,000,000.00 | ||||||
| He’erCulture(Shenzhen)Co.,Ltd | 9,935,477.77 | 9,935,477.77 | ||||||
| HaoduoDiamond | 60,000,000.00 | 60,000,000.00 | ||||||
(Shenzhen)Co.,Ltd
| (Shenzhen)Co.,Ltd | ||||||
| Othersubsidiaries | 89,000,000.00 | 8,000,000.00 | 14,000,000.00 | 83,000,000.00 | ||
| Total | 207,935,477.77 | 8,000,000.00 | 14,000,000.00 | 201,935,477.77 |
4.Revenueandcostofsales
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Primarybusiness | 2,005,711,510.45 | 662,886,503.09 | 3,504,011,054.08 | 1,059,821,992.30 |
| Otherbusiness | 4,881,247.28 | 2,461,038.16 | 30,921,300.22 | 32,745,675.51 |
| Total | 2,010,592,757.73 | 665,347,541.25 | 3,534,932,354.30 | 1,092,567,667.81 |
Disaggregationofrevenueandcostofsales:
Currency:RenminbiYuan
| Categoryofcontracts | Segment1 | Segment2 | Total | |||||
| Revenue | Costofsales | Revenue | Costofsales | Revenue | Costofsales | Revenue | Costofsales | |
| Typeofbusiness | ||||||||
| Including: | ||||||||
Classifiedbygeographicalregion
| Classifiedbygeographicalregion |
| Including: |
Marketortypeofcustomer
| Marketortypeofcustomer |
| Including: |
Typeofcontract
| Typeofcontract |
| Including: |
Classifiedbytimingoftransferofgoodsorservices
| Classifiedbytimingoftransferofgoodsorservices |
| Including: |
Classifiedbycontractduration
| Classifiedbycontractduration |
| Including: |
Classifiedbysaleschannel
| Classifiedbysaleschannel |
| Including: |
Total
Informationaboutitsperformanceobligations:
TotalItem
| Item | Timingofsatisfactionofperformanceobligation | Significantpaymentterms | Thenatureofthegoodsthattheentityhaspromisedtotransfer | Whetheritisaprincipal | Amountsexpectedtoberefundedtoacustomer | Typesofwarrantiesandrelatedobligations |
| Salesofgoods | whengoodsaredelivered | Normally,whentheCompanyreceivesanadvancepaymentfromacustomer,itwilldelivertheproductwithin15-60days.? | Jewelryandornaments | Yes | Customersareentitledtoreturnmerchandisewithin15daysofreceiptandthereforeareturnrateisestimatedandaprovisionforreturnsisrequiredbasedonhistoricalsales.ProvisionforreturnsmadeattheendoftheyearisdetailedinNoteVII.28. | Generally,guaranteequalityassuranceisprovidedtothecustomer.RefertoNoteV.26fordetailsofaccountingassets |
OtherdescriptionsUndertheself-operatedmodel,theperformanceobligationiscompletedwhenthecustomerreceivesthegoods.Typicallyfordirectstoreoperations,goodsaredeliveredwithin30daysofreceiptofthecontractprice;forassociatedstoresincooperationwithshoppingmallsande-commerceplatforms,thecontractpriceistypicallyreceivedwithin15-60daysofdeliveryofthegoods.Thecustomerhastherighttoreturntheproductwithin15daysafterreceivingit,soitisnecessarytoestimatethereturnratebasedonthehistoricalsalessituationandcalculatetheprovisionforreturn,whichisdetailedinNoteVII.28.
Informationrelatedtotransactionpriceallocatedtotheremainingperformanceobligation:
Attheendofthereportingperiod,theamountofrevenuecorrespondingtotheperformanceobligationsthathavebeencontractedbuthavenotyetbeenfulfilledorcompletelyfulfilledisRMB100,572,333.72yuan,ofwhich,revenueisexpectedtoberecognizedforRMBintheyearY,revenueisexpectedtoberecognizedforRMBintheyearY,revenueisexpectedtoberecognizedforRMBintheyearY.Significantvariationsincontractormaterialadjustmenttotransactionprice
Currency:RenminbiYuan
Item
| Item | Accountingtreatment | Effectofincome |
Otherdescriptions:
5.Investmentincome
Currency:RenminbiYuan
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Dividendincomeofasubsidiary | 470,008,243.54 | 480,000,000.00 |
| Investmentincomereceivedfromdisposalofheld-for-tradingfinancialassets | 149,403,162.82 | 65,266,805.97 |
| Investmentincomeearnedduringtheholdingperiodofdebtinvestment | 34,638,211.12 | 15,561,771.33 |
| Investmentincomereceivedfromdisposaloffinancialliabilitiesatfairvaluethroughprofitorloss | -454,869.03 | 0.00 |
| Total | 653,594,748.45 | 560,828,577.30 |
XIX.Supplementaryinformation
1.Breakdownofnon-recurringprofitorlossforthecurrentperiod
?Applicable□Notapplicable
Currency:RenminbiYuan
| Item | Amount | Description |
| Gainsorlossesondisposalofnon-currentassets | 1,483,669.10 | |
| Governmentgrants(exceptforgovernmentgrantswhicharecloselyrelatedtonormalbusinessoper | 17,239,801.74 |
ationsoftheCompany,areincompliancewithnationalpoliciesandregulations,areavailableatdeterminedstandardsandhavecontinuousimpactonthegainsorlossesoftheCompany)chargedtogainsorlossesfortheperiod
| ationsoftheCompany,areincompliancewithnationalpoliciesandregulations,areavailableatdeterminedstandardsandhavecontinuousimpactonthegainsorlossesoftheCompany)chargedtogainsorlossesfortheperiod | ||
| Gainsorlossesonchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldandgainsorlossesondisposaloffinancialassetsandfinancialliabilitiesbynon-financialenterprises,otherthanthoseusedintheeffectivehedgingactivitiesrelatingtonormaloperatingbusiness | 232,611,194.40 | Gainsorlossesarisingonchangesinfairvalueoffinancialassetsheldfortradingandinvestmentincomearisingonwealthmanagementproductsduringthereportingperiod. |
| Reversalofprovisionforaccountsreceivablethataretestedforimpairmentlossesindividually | 1,476,671.46 | Duringthereportingperiod,thelong-termoverduepaymentwasrecoveredfromtheshoppingmall. |
| Othernon-operatingincomeandexpensesotherthantheabove | -4,827,618.30 | Mainlyduetotheincreaseinliquidateddamagesarisingfromtheearlyclosureofstoresduringthereportingperiod. |
| Less:incometaxeffects | 58,543,156.86 | |
| Total | 189,440,561.54 | -- |
Detailsofotherprofitandlossitemsthatmeetthedefinitionofnon-recurringincomeandloss:
□Applicable?NotapplicableTheCompanyhadnootherspecificcircumstancesthatmeetthedefinitionofnon-recurringprofitandlossitems.Thenon-recurringprofitandlossitemslistedinExplanatoryAnnouncementNo.1onInformationDisclosurebyCompaniesOfferingSecuritiestothePublic–Non-RecurringProfitorLossaredefinedasregularprofitandlossitems:
?Applicable□Notapplicable
| Item | Amount(RMB) | Reason |
| VATrefunduponcollectionfortheactualtaxburdenondiamondimportsexceeding4% | 8,266,133.90 | GovernmentgrantswhicharecloselyrelatedtonormalbusinessoperationsoftheCompany,arein |
compliancewithnationalpoliciesandregulations,areavailableatdeterminedstandardsandhavecontinuousimpactonthegainsorlossesoftheCompany
| VATexemptionforsmall-scaletaxpayerswithmonthlysalesnotexceeding100,000yuan(or300,000yuanforquarterlysalesifaquarterisataxperiod) | 1,118,925.88 | compliancewithnationalpoliciesandregulations,areavailableatdeterminedstandardsandhavecontinuousimpactonthegainsorlossesoftheCompany |
2.Returnonnetassetsandearningspershare
| Profitforthereportingperiod | Weightedaverageofreturnonnetassets | Earningspershare | |
| Basicearningspershare(RMB/share) | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 1.04% | 0.17 | 0.17 |
| Netprofitafternon-recurringprofitorlossattributabletoordinaryshareholdersoftheCompany | -1.82% | -0.30 | -0.30 |
3.Differencesinaccountingdataunderdomesticandoverseasaccountingstandards
(1)DifferencesinnetprofitandnetassetsbetweenfinancialreportsundertheinternationalaccountingstandardsandtheChineseaccountingstandards.
□Applicable?Notapplicable
(2)DifferencesinnetprofitandnetassetsbetweenfinancialreportsundertheforeignaccountingstandardsandtheChineseaccountingstandards.
□Applicable?Notapplicable
(3)Reasonsfordifferencesinaccountingdataunderdomesticandforeignaccountingstandards.Whereadjustmentsaremadeforthedifferenceinthedataauditedbyanoverseasauditinstitution,thenameoftheoverseasinstitutionshallbeindicated.
□Applicable?Notapplicable