About LUXXU GROUP Company

We are the leading domestic watch brand owner and leading analog quartz watch OEM manufacturer of cheap analog quartz watches in China. According to the industry research report, for the year ending December 31, 2013, Time2U is the leading domestic watch brand in China's economic analog quartz watch segment 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 10 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 stylish and trendy designs and affordable prices for mainstream mass markets, we position watches as “fast fashion” products to grasp the latest consumer trends. We have two main lines of business, namely manufacturing and selling watches according to OEM benchmarks and manufacturing and selling watches under proprietary brands and major sub-brands (namely Time2U, Rongkai and Color). Our watches are manufactured to OEM standards and carry the corporate logo or brand specified by the OEM customer. An OEM customer is a company that purchases directly for itself or a trading and purchasing company that purchases on behalf of an 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 in accordance with the concepts, requirements and standards of OEM customers, as well as providing recommended designs developed by our in-house design team. We believe our watch design and development capabilities set us apart from our 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 economic analog quartz watch market. Rongkai is our high-end brand, aimed at more mature and experienced consumers. Color is our main sub-brand of Time2U, aimed at young and fashionable consumers. As far as OEM watches are concerned, we sell directly to OEM customers located in China and Europe, America and Asia (excluding China, etc.). On the other hand, the branded watches we sell domestically are sold to distributors on a wholesale basis. The distributors then resell our brand watches to (i) consumers at the various points of sale and online stores they operate, or (ii) their wholesale customers, who in turn resell our brand watches to consumers through their respective retail channels. As of April 30, 2014, we have 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 raise the awareness of our brand. Since 2010, we have been increasing our marketing expenses to enhance the popularity and image of our exclusive brand. We adopt a multi-pronged marketing strategy, including attending exhibitions, advertising on television and print media, and carrying out online marketing activities.