About LUXXU GROUP Company

We are the leading domestic watch brand owner and leading analog quartz watch OEM manufacturer of economical analog quartz watches in China. According to data from industry research reports, for the year ended December 31, 2013, Time2U was the leading domestic watch brand in China's economical analog quartz watch division in terms of retail value; in terms of retail value, we are also one of the top five analog quartz watch manufacturers in China. We were founded in 1994, initially as a manufacturer of watches and related products. With over ten years of experience in watch manufacturing, we began designing, manufacturing and selling watches under our own brands Time2U and Rongkai in 2010, and then launched our main sub-brand Color in mid-2012. With a trendy design and an affordable price for the mainstream mass market, we position the watch as a “fast fashion” product to grasp the latest consumer trends. We have two main business lines, namely manufacturing and selling watches according to OEM standards and manufacturing and selling watches under proprietary brands and major sub-brands (i.e. Time2U, Rongkai and Color). Our watches produced according to OEM standards are accompanied by a corporate logo or brand specified by the OEM customer. An OEM customer is a company that directly purchases for itself or a trading and procurement company that purchases on behalf of the end customer. As far as OEM watches are concerned, we mainly manufacture watches based on customer designs and specifications. Furthermore, from time to time, we participate in the design and development of watches according to OEM customer concepts, requirements and standards, and provide recommended designs developed by our in-house design team. We believe that our ability to design and develop watches makes us stand out from OEM competitors. With our design and production capabilities, we successfully launched the branded watch business in 2010. We fully manage the design, development and production of branded watches. Under the “fast fashion” theme, we develop and promote several unique brands and sub-brands. The product characteristics, domestic pricing, and target markets of these brands are all unique. Time2U is our flagship brand. In terms of retail value, it has become the leading domestic brand in China's economical analog quartz watch market. Rongkai is our high-end brand, aimed at more mature and sophisticated consumers. Color is our main sub-brand under Time2U, aimed at young and fashionable consumers. As far as OEM watches are concerned, we sell directly to OEM customers located in China, Europe, America and Asia (excluding China, etc.). On the other hand, our branded watches sold domestically are sold to distributors on a wholesale basis. Distributors then resell our brand watches to (i) consumers at various points of sale and online stores they operate, or (ii) their wholesale customers, who then resell our branded watches to consumers through their respective retail channels. As of April 30, 2014, we had 28 distributors in 24 provinces, autonomous regions and municipalities in China. Since 2013, we have also exported branded watches to overseas customers on a wholesale basis. As brand owners, we focus on using different marketing activities to increase the visibility of our brand. Since 2010, we have been increasing our marketing expenses to enhance the visibility and image of our exclusive brand. We adopt a multi-pronged marketing strategy, including attending exhibitions, advertising on television and print media, and conducting online marketing activities.