Business summary

The Group is a network of vertically integrated wholesalers and retailers of jewellery, strategically composed of seven retail stores operating under the “Chuanghui Jewelry” brand in Kowloon, Hong Kong and the New Territories. The Group has a method to control the diversification, quality and pricing of its own jewelry designs created by its own production facilities in Shenzhen, Guangdong Province, China. The Group is also involved in wholesaling its jewellery products to other customers (including other jewellery retailers) and trading in recycled gold products. The Group's main products are jewellery products, including gem-encrusted jewellery products and pure gold products (such as earrings, rings, pendants, necklaces, bracelets); the general target market is the medium to high-end jewellery market (i.e. products with retail prices between HK$2,000 and HK$100,000 each).

Competitive advantage

The vertically integrated business model allows the group to effectively control its operations and

costs

The Group is already proud of its efforts to build a loyal customer base in Hong Kong, as well as a deeply rooted business history and a trusted brand reputation

An experienced production team helps to produce high-quality and complex fine jewelry

Risk Factors

Fluctuations in the prices of jewellery raw materials for the Group's jewelry products may have a significant adverse effect on its business

The group may not be able to renew retail store leases, which may have an impact on its business and operations when the relevant leases expire or end

The group may not be able to sustain its profitability