Corporate Transactions - The company completed a Share Exchange Agreement on December 21, 2020, acquiring Flower Crown Holding for the issuance of 25,913 shares of Common Stock [278]. - The company sold 100% ownership in Heyang Travel on October 8, 2023, which was previously a wholly-owned subsidiary [280]. - The company completed a stock purchase agreement on October 19, 2022, selling 20,000 shares of Hongri International for 31.8 million, a 60% decline from 2.7 million in 2023 from 7.6 million in 2023 from 3.0 million in 2023, compared to a loss of 58.3 million [460]. - The company reported a net margin of 9% for 2023, a significant improvement from -93% in 2022 [460]. - Administrative expenses dropped by 96% to 56.0 million in 2022, mainly due to the absence of share-based compensation expenses [457]. Shareholder and Stock Information - The company completed a share repurchase program, acquiring 152,000 shares of Common Stock for a total price of $1,780,000 [293]. - A 1-for-10 reverse stock split was implemented on April 26, 2023, allowing the Company's stock to trade above the minimum bid requirement, although compliance was not regained by the initial deadline [304]. - On May 23, 2023, Nasdaq confirmed the Company regained compliance with the minimum bid requirement, canceling the scheduled hearing for May 25, 2023 [305]. - The company has not established cash management policies for fund transfers among its subsidiaries or investors as of the date of the annual report [473]. - No dividends have been paid to shareholders, and future earnings are intended to finance business expansion [474]. Regulatory Environment - The Foreign Investment Law in China, effective January 1, 2020, governs foreign investments and provides national treatment to foreign investors outside the negative list [367][368]. - The Overseas Listing Trial Measures, effective March 31, 2023, require PRC domestic companies to fulfill filing procedures for overseas listings, impacting the company's ability to offer securities [373][378]. - The company is subject to fines ranging from RMB1,000,000 to RMB10,000,000 for failing to comply with the Overseas Listing Trial Measures [378]. - The Cybersecurity Law mandates network operators to ensure the integrity, confidentiality, and usability of network data, with obligations to prevent unauthorized access and data breaches [380]. - The Data Security Law establishes a classification system for data protection, requiring compliance for cross-border data transfers by critical information infrastructure operators [384]. Operational Strategies - The company emphasizes technology advancements and customer support as key strategies to maintain a competitive edge in the evolving travel industry [313]. - The company offers a software solution for tourism cross-border operations, which includes real-time inventory management and order processing capabilities, enhancing operational efficiency for business clients [329]. - The company has implemented an AI-based analysis program to identify emerging trends in tourism cross-border merchandise, enhancing product sourcing decisions [338]. - The company has adopted a unique approach to excess inventory management, allowing unsold merchandise to be shared among business clients, reducing risks associated with surplus inventory [340]. - The company specializes in sourcing high-quality tourism cross-border merchandise, including health care, personal care, and cosmetics products, from a diverse network of suppliers [336]. Employee and Tax Information - The company employs 134 individuals, including 57 full-time and 77 part-time employees, maintaining a competitive compensation package [343]. - The company is subject to a corporate income tax rate of 25% for resident enterprises and 10% for non-resident enterprises with no established offices in China [407]. - High-tech enterprises may benefit from a reduced income tax rate of 15% upon accreditation, reassessed every three years [408]. - Employers in China are required to contribute to social insurance plans, including pension and medical insurance, based on specified percentages of employee salaries [403]. - The company must comply with regulations regarding housing provident fund contributions, with fines for non-compliance ranging from RMB10,000 to RMB50,000 [404].
JX Luxventure(JXJT) - 2023 Q4 - Annual Report