[年报]迪阿股份(301177):2023年年度报告（英文版）
原标题:迪阿股份:2023年年度报告（英文版） TheBoardofDirectors,theSupervisoryCommitteeandtheDirectors,SupervisorsandseniormanagementofDRCOwarrantthattheinformationofthisannualreportistrue,accurateandcompletewithoutanyfalsestatements,misleadingstatementsormaterialomissions,andtheyshallassumeindividualandjointlegalresponsibility. Both Zhang Guotao, the legal representative of DRCO and Huang Shuirong, the head of the financialdepartmentinchargeofthecorporateaccountingconfirmthefinancialstatementscontainedintheannualreportaretrue,accurateandcomplete. Alldirectorshaveattendedtheboardmeetingatwhichthisreportwasdeliberated.DespitethesteadygrowthacrossChina’sjewelryindustryDuringtheReportingPeriod,thediamondmarketwasdefinitelyinfluencedbyaggravatedstructuraldifferentiation,intensecompetition,sluggishdemandsfordiamondjewelryasconsumerdiscretionaryandobviouslyincreasinggoldsafe-havendemands.AccordingtostatisticsfromtheGems&JewelryTradeAssociationofChina,thediamondproductsmarketdeclinedabout 27% year-on-year in 2023. With a fully self-managed sales model and diamond jewelry as themainstay,theCompany’soperatingrevenuedropped40.78%year-on-year in2023,whichwasconsistentwiththediamondmarkettrend. Incontextofstrategicbrandupgrading,DRCOhasadjustedcorporatechannelstrategyandoptimizedthechannel layout to enhance brand image and service experience. Some low-potential stores and thoseincompatible with the brand image were closed, relocated or replaced. According to the AccountingStandardsforBusinessEnterprisesandtheCompany’saccountingpolicies,DRCOmadeprovisionsforasset impairment on stores that showed signs of impairment, and made bad debt provision for leasedepositsthatcouldnotberecoveredduetoearlyclosureofthestores,basedontheprudenceprincipleofaccounting.Theabove-mentionedmattershadamajorimpactontheCompany’sperformanceinnetprofitsduringthereportingperiod,withthenetprofitsattributabletoshareholdersdownby90.54%year-on-year.Infaceofever-changingmarket,DRCOwillmakeactiveresponseandproactivelyadjuststrategiestoboostbrandpotentialandproductcompetitiveness.Inparticular,wewillfocusonsoundbusinessoperationandstore profitability, and take actions to reduce costs and increase efficiency, with a view to promoting sustainableandstabledevelopmentoftheCompany. Duringthereportingperiod,therewereneithermaterialadversechangesinDRCO'sprincipalbusinessandcorecompetitiveness,norovercapacityorpersistentdeclineinthejewelryindustrywithoutanysignificantriskstosustainableoperationoftheCompany(seedetailsin“I.Industrialsituationduringthereportingperiod”,“II.DRCOmainbusinessduringthereportingperiod”and“III.Analysisofcorecompetitiveness”underPartIII.ManagementDiscussionandAnalysis). Any forward-lookingstatementsinthisreportthataddressfutureplansandobjectivesdonotconstitutematerialcommitmentsbyDRCOtoinvestorsandinvestorsandrelatedpartiesshouldbeawareoftherisksinvolvedandshouldunderstandthedifferencesbetweenplans,projectionsandcommitments.Self-disciplinarySupervisionGuidelinesNo.3forCompaniesListedonShenzhenStockExchange-IndustryInformationDisclosure. According to the profit distribution plan approved by the Board of Directors, a cash dividend ofRMB5.00(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 DocumentsAvailableforInspection I FinancialstatementssignedandsealedbyDRCO'slegalrepresentative,andtheheadofthefinancialdepartmentinchargeofthecorporateaccounting; II Original copy of the auditors’ report sealed by the accounting firm, and signed and sealed by the certifiedpublicaccountants; III All original copies of DRCO’s announcements and documents publicly disclosed on the websitesdesignatedbyChinaSecuritiesRegulatoryCommission(CSRC)inthereportingperiod;IV Originalcopyofthe2023annualreport,whichhasbeensignedbyDRCO’slegalrepresentative;V Otherdocumentsavailableforinspection. Theabove-mentioneddocumentsarekeptattheBoardSecretaryOfficeofDRCO.Terminology
I. BasicInformation
AccountingfirmengagedbyDRCO
V. KeyAccountingDataandFinancialIndicators WhetherDRCOneedstoretroactivelyadjustorrestatetheaccountingdataofthepreviousyears□Yes ?No
□Yes ?No ThelowerofDRCO'snetprofitbeforeorafterdeductionofnon-recurringprofitorlossisnegative.?Yes□No
Unit:RMB
indicatorsdisclosedintheDRCO’squarterlyorsemi-annualreports.□Yes ?No VII. DifferencesinAccountingDataUnderDomesticandInternationalAccountingStandards1. The differences in net profit and net assets disclosed in financial reports prepared according to InternationalFinancialReportingStandards(IFRS)andChineseAccountingStandards(CAS).□Applicable?Notapplicable ThisreportispreparedinaccordancewithChineseAccountingStandardsanddoesnotincludedifferencesinnetprofitandnetassetsdisclosedduringthereportingperiodunderbothInternationalFinancialReportingStandards(IFRS)andChineseAccountingStandards. 2. ThedifferenceinnetprofitandnetassetsdisclosedinfinancialreportspreparedaccordingtobothoverseasaccountingstandardsandChineseaccountingstandards. □Applicable?Notapplicable ThisreportispreparedinaccordancewithChineseAccountingStandardsanddoesnotincludedifferencesinnetprofitandnetassetsdisclosedduringthereportingperiodunderbothOverseasFinancialReportingStandardsandChineseAccountingStandards. VIII.Non-recurringProfit/LossItemsandAmounts ?Applicable□Notapplicable Unit:RMB
DRCOhasnootheritemsinlinewiththedefinitionofnon-recurringgains/losses.Explanation on defining the non-recurring items listed in Interpretative Announcement No. 1 on theDisclosureofInformationbyCompaniesIssuingSecuritiesPublicly—Non-recurringGainsandLossesasrecurringitems ? Applicable□Notapplicable
I. Industrialsituationduringthereportingperiod DRCO is required to comply with the disclosure requirements for "jewelry-related business" and "retail industry" specifiedintheSelf-disciplinarySupervisionGuidelinesNo.3-IndustryInformationDisclosureofcompanieslistedontheShenzhenStockExchange. (I) Overviewofmacroeconomicenvironmentandmarketconditions In2023,worldeconomicrecoverywasweak,inflationremainedatahighlevelglobally,thespillovereffectsoftightenedmonetarypoliciesinmajoreconomiesbecameprominent,de-globalizationandgeopoliticalrisksincreased. The external environment became increasingly complex and severe.The domestic economicrecovery process is volatile, affected by the slowdown of China's economic growth and the lack ofconsumptionpowercausedbytherealestatemarketenteringthedownwardperiod,theoverallrecoveryspeedoftheconsumerindustryislessthanthemarketexpectations.AccordingtoaninvestigationofthePeople’sBankofChina(PBOC),thewillingnesstosaveofChinesedepositorsstayedatanall-timehighin2023,which,coupledwithasetbackinconsumerconfidence,ledtotheamountofnewdepositssubstantiallyexceedingthatofnewloansforthesecondconsecutiveyear.Nevertheless,consumptionstillshowedstrongresilienceamongthethreedriversofgrowth.In2023,China'sGDPgrewby5.2%overthepreviousyear,with 4.3% of the growth fueled by final consumption expenditure, making it the principal driver of the economicrecovery.AfurtherbreakdownofthedataontotalretailsalesofconsumergoodssuggestsawidedisparityintherecoveryofdifferentconsumptiontypesinChina.Theconsumptionofcateringserviceswasbetter than that of commodities, and the consumption of consumer staples was stronger than that ofconsumerdiscretionary.Theconsumptionstructureexhibitedadividedtrend.“Recoveryandexpandingconsumption”remainedkeywordsthroughouttheyear.Toboostconsumption,diversifiedconsumptionscenarioswerereopenedanddevelopedinamoreorderlyfashion.Respondingtothe strategy of expanding domestic demand, relevant policies gave full play to the fundamental role of consumption in economic development and continued to enhance the lasting power of high-qualitydevelopment.Forinstance,theNationalDevelopmentandReformissuedthe“MeasurestoRestoreandExpandConsumption”,whichproposed20specificmeasurestostabilizespendingonbig-ticketitemsandexpand service consumption and formed a policy package. Several authorities proposed to stimulateconsumptionwithafocusonresidentincome,financialservicesandtheconsumptionenvironment,etc.,andspecificinitiativesrepresentedbyconsumptionvoucherswerelaunchedoneafteranother.Theconsumermarketisbecomingincreasinglycomplexanddiversified.Theconsumersarebothemotionalandrationalindecision-making. In particular, as the quality of life improves, people tend to pursue individualized and customizedconsumption.Consumptionisgettingmoreandmorediversifiednomatterintermsofinnovativeproductdesign,individualizedmarketingstrategyorcross-industryintegrateddevelopment.(II) Overviewofthedevelopmentofthejewelryindustry In2023,theglobaljewelrymarketwasUS$353.26billion,inwhichtheAsia-Pacificjewelrymarketaccountedfor59.9%.Thishugemarketsharewasmainlyattributedtothehighdemandforjewelryindenselypopulatedcountries. As a major player in the global jewelry market, China's jewelry industry has entered a new business cycle.Accordingtothe“2023DevelopmentReportofChina's JewelryIndustry”issuedby theGems&JewelryTradeAssociationofChina,thetotalmarketsizeofChina'sjewelryindustryin2023wasapproximately RMB820 billion, an increase of 14% over 2022. The gold products market stood atapproximatelyRMB518billion,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%and11.3%,suggestingaweakmarketdemandfornaturaldiamond.Accordingtothe“DiamondInsightReport2023”ofDeBeers,China'smiddleclassisgrowingdramaticallyfromoneinfive(21%)in2010tooneintwo(51%)in2022,andpossiblytotwo-thirdsby2030.ThediamondindustryinChinamaybenefitfromthiswithRMB140billionofbusinessopportunities. In short, the jewelry industry is undergoing an unprecedented reform with the development of globaleconomyandthechangeofconsumptionconcepts.Thedevelopmentofdigitizationinthejewelryindustry,the growing concern about sustainable development, and the pursuit of individualization and spiritual satisfactionaredrivingmulti-dimensionalupgradingofthejewelryindustry.China,asthemostpromisingconsumermarketforjewelry,willseeanewdevelopmentpattern.Thediamondjewelryindustryhasbegunacyclicaladjustmentfilledwithchallengesandtests,andtheleadingplayersthatwouldcontinuetoimprovetheir core competitiveness and brand potential could seize the opportunity of industry adjustment to exchangetimeforspaceandgainabiggermarketshare. 1.Increaseinresidentsdisposalincomedrivessteadygrowthoftheindustry,andthecombinedemergenceofdiversifiedconsumerdemandsandcustomerbehaviors ConsumptionhasbecomeakeydriverofChina’seconomicgrowthinwhichtheresidentsdisposalincomelevelisanimportantfactor.In2023,thepercapitadisposableincomeinChinawasRMB39,218,up6.1%fromthepreviousyear,whichwasfasterthanthegrowthofGDP.Thegrowthindisposalincomelaysthefoundationforincreasingthepenetrationrateofdiamondjewelryasconsumerdiscretionary.Inthemid-andlong-run,thereismuchroomforthepenetrationrateandpercustomertransactionofdiamondjewelrytoriseinChina.AccordingtodatafromWorldJewelryAssociationasquotedbyForward(QianzhanIndustrialResearchInstitute),thepenetrationratesofdiamondjewelryintier-1,tier-2,andtier-3citiesandbelowwererespectively61%,48%and37%,lowerthan thepenetrationratesofgoldand platinum.The“DiamondInsightReport2023”showedthatthepenetrationrateofdiamondconsumption,percapitaannualspendingondiamond,andpercapitalpossessionofdiamondinChinawerelessthan50%ofthoseintheUSandJapan.Thisshowsthatwiththecontinuousimprovementofpercapitadisposalincomeandpenetrationrateislikelytospurtheexpansionofthejewelryindustry. InChina,oneofthelargestconsumermarketsintheworld,thereisastrongdemandfordiversifiedandinnovative products and services. The ever-changing preferences and behavioral patterns of Chineseconsumers bring tremendous opportunities and challenges for jewelry brands. With a middle-incomepopulationof470million,Chinaisgoingthroughaconsumertransitionfromfocusoncostperformancetofocus on appearance to focus on psychological satisfaction. In addition to the asset preservation and appreciation function of jewelry, diversified consumption demands and consumer behaviors emerge incombinationastheconsumergroupandconsumptionscenariosexpand.AccordingtostatisticsfromtheGems&JewelryTradeAssociationofChinaandErnst&Young,femaleconsumersareprimarilyinterestedinthedesignofjewelry.Therefore,theabilitytothoroughlyunderstandtheemotionalandscenariodemandsofconsumers,theresearch,developmentanddesignability,andthevalueandmeaningconveyedwillbeincreasinglyimportantforbrandsincompetition. 2.Marketfluctuationacceleratesindustryreshuffle,andtheriseofself-ownedbrandsleadstomarketconcentrationtowardstopbrands Afterthepublichealthemergencyandthewithdrawalofcapitalfromconsumergoods,thetransformationandupgradingoftraditionaljewelersthatrelyonextensivechannelcoveragetobuildbarrierstocompetitionandgainmarketsharewithstoresacceleratetheexitofsmallandmedium-sizedjewelrybrandsandtheconcentrationofmarketresourcestowardsthetopcompanies.Jewelerswithbrandappealandinfluencemayintegrateupstreamanddownstreamresourcesandenlargetheirmarketsharemoreefficiently,leadingthemarkettomovetowardsthetopbrands.AccordingtodatafromEuromonitor,China’sjewelryindustryshowedatendencyofconcentrationtowardsthetopbrandsduring2016-2023,withCR10increasingfrom19.1%toalmost35.6%,anddespitearelativelyfragmentedcompetitionlandscape,thetopcompaniesstillhaveroomtofurtherraisetheirmarketshare.AresearchconductedbyMcKinseyforChowTaiFookin2022suggestedthatthesalesofChinesebrandeddiamondwouldgrowat10%-14%annuallyinthecomingyears.The continuous improvement in the concentration of jewelry brands is inseparable from the deepinvolvement of China's self-owned brands in globalization. The diversification of brand innovation, the developmentofnewconsumerbrandsandthecreationofbrandconsumptionatmosphereallfueltheriseofself-ownedbrands.Inthecompetitionwithinternationalbrands,self-ownedbrandscontinuetoaccumulateproductinnovationabilityandbrandpower.Accordingtothe“DiamondInsightReport2023”ofDeBeers,establishedbrandsrepresentedastaggering92%ofalldiamondjewelrypurchasesin2022,whilein2016,thepercentagewasonly 44%.Amongthem,Chinesebrandsledthepurchaseofdiamondjewelryandcontributedapproximately80%ofthetotalpurchases,indicatingthatconsumersbuydiamondjewelryforthebrandculture,emotionalconnotations,extensiverecognitionandbrandinfluence.ThisphenomenonwherebrandisthevehicleandcultureisthelanguagereflectsthedeepfusionofChinesecultureandmodernconsumerism. In2023,catalyzedbymultiplefactorssuchasthesustainedsurgeingoldpricesintheshorttomidterm,thefurtherbroadeningofconsumptionscenarios,andtheiterationandupgradingofnewcraftsanddesigns,thegoldjewelryindustryshowedarelativelyimpressiveperformanceamongconsumerdiscretionary.DatafromtheNationalBureauofStatisticsshowsthatthetotalretailsalesofconsumergoodsin2023wasRMB47.15trillion,anincreaseof7.2%overthepreviousyear.Theretailsalesofgoldandsilverjewelryintheconsumermarketwasstrong,withthetotalretailsalesofgoldandsilverjewelryabovethedesignatedsizeamountingtoRMB331billion,up13.3%year-on-year,whichwasthesecondfastestgrowth.Goldisapreciousmetalstronglycorrelatedwiththemonetarysystem,theeconomiccycle,andtheglobaleconomy.Basedonitsinherentmonetaryattributes,goldcontinuestobeasafehavenofassetsforChineseconsumers. According to the latest statistics released by China Gold Association, the whole countryconsumed1,089.69tonsofgoldin2023,anincreaseof8.78%comparedwiththesameperiodin2022,including706.48tonsofgoldjewelry,ayear-on-yearincreaseof7.97%;299.60tonsofgoldbarsandcoins,ayear-on-yearincreaseof15.70%;and83.61tonsofgoldforindustrialandotherpurposes,ayear-on-yeardecrease of 5.50%. Benefiting from the continuous rise in gold prices and the increasing demand ofresidentsforvaluepreservationandriskhedging,investmentinphysicalgoldattractedgreaterattentionandtheconsumptionofgoldbarsandcoins,whichhaverelativelylowpremiums,showedaquantitativegrowth.However,thedemandfordiamond,whichalsobelongstojewelry,experiencedcyclicaladjustments.IDEXdatashowedthattheclosingpriceofthefinisheddiamondpriceindexattheendofDecember2023was16.53%lowerthanthatattheendofDecember2022,whiletheannualdropin2022was6.4%.Moreover,according to customs statistics for Shanghai Diamond Exchange, diamond transactions at ShanghaiDiamondExchangetotaledUS$3.109billionduringJanuary-December2023,adecreaseof29.7%year-on-year. Meanwhile, the emergence of lab grown diamonds aroused public discussion on the "value ofdiamond", and consumers misunderstood the scarcity and uniqueness of natural diamonds to varyingdegrees as a result of publicity by some We Media accounts. However, quite a number of industrypractitionersbelievethatlabgrowndiamondsandnaturaldiamondsaretwocompletelydifferentmarketsandsegments,andthatlabgrowndiamondsprovideanewoptionforthediamondconsumermarket,whichwillhelptoexpandthevolumeofthediamondmarketasawhole.Frost&Sullivanprojectedthattheglobaldiamondmarketwouldseeasupply-demandgapof159millioncaratsby2030.Hence,someseniorindustryanalystsbelievethatthedeclineinnaturaldiamondsisessentiallyacorrectionoftherapidriseindiamondpricesbetween2020and2021.Asdiamondproductionfalls,thelong-termscarcityofdiamondswillberestoredandthepriceindexwillgraduallypickup. 4.Thetransitionfrom“channelmodel”to“newretailmodel”promotesdigitaltransformationoftheindustry Inthepast,consumersdecidedwhetherabrandwasreliablemainlybasedonthesizeofitschannels,sopopular jewelry brands penetrated the market mostly by expanding their channels to reach as manyconsumers as possible. In recent years, however, as the "aesthetic consciousness" awakens, generalconsumerscanhardlyformanindependentconsumerpreferencethroughrepeatedpurchasesofjewelry,whichishigh-pricedlow-frequencyconsumergoods,makingexternalreputationparticularlyimportant.Asaresult,brandoperatorsthatfocusonterminalmarketing,productinnovationanddigitalcapacitybuildingaremore likely to gain new growth momentum in the new consumer environment, which accelerates thetransitionofthejewelryindustryfromthe"channelmodel"tothe"newretailmodel".Meanwhile,therapiddevelopmentofonlinemediainfluencestransmissionefficiency,whichgivesconsumersenoughoptionsandselective power. Thus, jewelry brands must accurately grasp the end consumer demands and respondquickly.theimportanceofthewhole-linkdigitalcapacityisincreasinglyhighlightedinthedemand-ledstage.Inthedemand-ledstage,digitalcapabilityacrossthechainbecomesincreasinglyimportant.Overthepastthreeyears,changesinconsumers,media,andbrandshaveshapedanewdirectionforonlineandofflineintegration.Digitaltransformationenablesjewelrycompaniestodeliverpersonalizedservicesandcustomizedproductsbetter,andtheycanunderstandconsumerpreferencesandneedsmoreaccuratelybasedondatacollectionandanalysis.Inadditiontoimprovementsinproductdevelopment,designandothertangibleaspects,consumerexperienceandexperientialconsumptionarebecomingessentiallinksintheconsumptionchain.Accordingtothe"2024ConsumerandMediaTrendsReport"issuedbyGroupM,84%ofconsumers would experience a product before making a purchase offline, in which 31% would view aproductonlineandthenexperienceandbuyitoffline.Theinfluenceofrecommendationsandco-brandingonconsumers'finalpurchasesincreasedby25%year-on-yearin2023.Thepercentageofconsumerswhosearchedformoreinformationbeforemakinganonlinepurchasegrewfrom58%in2022to65%in2023.Theconsumerbuyingbehaviorsshowthat,moreandmoreconsumerstendtobuyfromchannelssuchasofficialwebsite,miniprogramandprivatetrafficpoolofshoppingguides,andconsumersareincreasinglyinfluencedbytherecommendationsofcelebritiesandopinionleadersonWeMediaplatforms.5.Deepinsightintoconsumerneedsisstillakeyfactorinthelong-termdevelopmentofthejewelryindustry China'sconsumermarketischangingrapidly,withthecoreelementofcompetitionshiftingfromproductionandchannelstotheconsumer'smentality.Itiscrucialforbrandstogaindeepinsightsintoconsumerneeds,secureafavorablepositioninconsumers'minds,andbuildacognitiveadvantagethroughadifferentiatedpositioning.In2023,somejewelrybrandscombinedtraditionalcraftsmanship,weddingcultureandChineseandWesternaestheticelementsintotheirjewelrydesignbasedonathoroughunderstandingoftraditionalweddingcultureandmodernconsumerneeds,anddevelopeduniquelydifferentiatedproductsthatwontheheartsofconsumers.Furthermore,brandimpressionthatrepresentstheproductsisthekeytoconsumerrecognition. It requires jewelry brands to make prospective arrangements in terms of design conceptplanning,selectionofsuitabletechnology,andcultivationofculturalconnotations.Giventhestronglinkbetweenjewelrybrandandconsumertrust,quality,personaltasteandstyle,brandhasbecomeasignificant driverof consumers'purchasing decisions. Jewelry brands that have accumulatedcertainbrandassetstendtobemoreinfluential.Accordingtothe"2023JewelryConsumerTrendsReport",56%ofrespondentsinChinaassociatedjewelrybrandswithtrustandquality,while53%associatedbrandswiththeexpressionofpersonaltasteandstyle.ConsumersontheChinesemainlandweremorebrand-consciousthantheirHongKongcounterparts,asthereportfoundthat86%ofrespondentsontheChinesemainlandattachedmoreimportancetobrand.Thus,thecredibilityandqualityofjewelrybrandsplayapivotalroleininfluencingpurchasedecisions.Moreover,consumersexpecttoseevaluesandemotionsconsistentwiththeirownintheimage,storyandunderlyingphilosophyofthebrandtheychoose,sojewelrybrandswithemotional connotations, value propositions, attitudes and tonality are likely to further broaden their consumptionscenarios.Accordingtothe"2023JewelryConsumerTrendsReport",thevaluepropositionofnatural diamond is multifaceted and not limited to its scarcity and value preservation function. Chinese consumers associate natural diamond with significant moments in their lives, anniversaries, love and achievements.Femalerespondents showed themoststrikingemotionalconnection todiamond.82%offemale consumers believed that diamond represented eternal love/true love or symbolised constantcommitmentandfidelityinaproposal. II. DRCOmainbusinessduringthereportingperiod DRCOabidesbythedisclosurerequirementsforjewelry-relatedbusinessandretailindustryspecifiedintheSelf-disciplinarySupervisionGuidelinesNo.3-IndustryInformationDisclosureofCompaniesListedontheShenzhenStockExchange. (I) MainbusinessofDRCO Insistingonthecorporatevisionofgloballeaderintrueloveculture”,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'sTop 500 Brands" by World Brand Lab, “Brand of the Year” by JNA Awards, and “Best InternationalEngagementRingBrandoftheYear”byHKCT,forseveralconsecutiveyears.Duringthereportingperiod,the Company was listed into Top 100 Luxury Goods Enterprises for 2023 by Deloitte. 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.TheCompanyisdedicatedtocreatinghigh-qualityinnovativeproductsandprovidingsuperlativeservicesto offereachcustomerauniqueexperienceoftruelove.Ourmainproductscurrentlyincludeengagementrings, weddingrings,anniversarygifts,andgoldbridalgifts.Duringthereportingperiod,theCompanycollaborated withrenowneddomesticandinternationalcraftsmen,whopaytributetothedeterminationtoloveforever with a deep dedication to craftsmanship. With a unique aesthetic attitude and stringent craftsmanship standards,theymeticulouslycraftedeachpieceofjewelryrepresenting"thesoletrueloveinonelife".(III) AnOverviewoftheOperationalStatus（未完）  |