JAJ Group: Half-year Financial Report for the 2024/2025 financial year

HALF-YEAR FINANCIAL REPORT

AS OF SEPTEMBER 30, 2024

JAJ GROUP SA

25 RUE DE ROMAINVILLE

93100 MONTREUIL

592 013 155 00128

SUMMARY OF THE ANNEX OF THE HALF-YEAR ACCOUNTS

1. Characteristic facts

2. Accounting rules and methods

3. Tableaux :

4. • Fixed assets

   • Depreciation

   • Provisions recorded on the balance sheet

   • Status of due dates for receivables and debts

   • Detailed variation of stocks and outstandings

   • Products to receive

   • Details of accrued charges

   • Details of prepaid expenses

   • Composition du capital social

   • Change in equity

   • Turnover

   • Breakdown of the result

   • Average workforce

   • Financial commitments

   • Fees of the Statutory Auditors

SOCIAL ANNEX

The assessment presented to you has a duration of 6 months and covers the period from 1is April 2024 to September 30, 2024. The notes and tables presented below are an integral part of the half-year accounts.

1. Characteristic facts

The first half of the 2024/2025 financial year shows a decrease in turnover going from 13.4 million euros to 11.7 million euros, or a 13% decrease. This decrease is explained by delays in deliveries of winter products as well as the sluggishness of the market due to current affairs.

2. Accounting Rules and Methods

(Decree No. 83-1020 amended from 11/29/1983 – articles 7, 21, 24 beginnings, 24-1, 24-2 and 24-3)

The accounts for the closed financial year have been prepared and presented in accordance with accounting rules in compliance with the principles provided for in articles 121-1 and 121-5 et seq. of the 2014 General Accounting Plan.

The basic method used for valuing items recorded in the accounts is the historical cost method.

The accounting conventions were applied, in accordance with the provisions of the commercial code, the accounting decree of 11/29/83 as well as ANC regulation 2014-03 relating to the rewriting of the general accounting plan applicable at the close of the financial year. .

2.1 – TANGIBLE AND INTANGIBLE ASSETS:

Intangible and tangible assets comply on the one hand with CRC regulation 04-06 relating to the definition, recognition and valuation of assets, and on the other hand with CRC regulation

02-10 (amended by CRC regulation 03-07) relating to amortization and depreciation of assets.

Fixed assets are valued at their acquisition cost and the rule of breakdown by components has been applied.

The depreciation period used is the useful life of the asset. Assets are depreciated on a straight-line basis, except for office equipment which is subject to decreasing depreciation.

The useful lives retained for the different categories of fixed assets are as follows:

The goodwill for a value of €641,820 consists of the goodwill of the Rivieras boutique for €351,820 and the acquisition of the Panorama customer base for €290,000.

Goodwill is valued at acquisition cost. The method used to analyze the depreciation of the goodwill is a usual method which consists of comparing the value of the goodwill to 90% of the annual turnover including tax and to the value of the goodwill of the surrounding sectors.

2.2 – FINANCIAL ASSETS:

Financial assets are analyzed as follows:

a) Equity securities

BRED equity securities are held by Groupe JAJ as of 09/30/24.

b) Deposits and guarantees

Deposits and surety bonds are essentially security deposits on rental contracts and stores.

2.3 – STOCKS :

a) Merchandise stocks

Goods in stock were valued at their acquisition cost using the FIFO method.

The gross value of the goods includes the purchase cost and incidental costs. Storage costs are not taken into account for this evaluation.

b) Stocks of finished products

Finished products in stock were valued at cost using the FIFO method.

The gross value of finished products includes the cost of purchasing raw materials and manufacturing subcontracting, incidental costs and collection costs. Storage costs are not taken into account for this evaluation.

This year, there is no inventory depreciation. Indeed, a partnership with the company “Mick Shoes” has been concluded, stipulating that it undertakes to take back our remaining stocks at a preferential rate which allows us to destock the products at a profit. On the other hand, remaining stocks are put on sale in the Talange store.

c) Production in progress

Models made with a view to a clothing collection presented and offered for sale during the following financial year are valued and recognized as production in progress at

closing of the financial year in the amount of the design costs that were incurred. These costs include external and internal style costs (salaries and social charges paid to staff participating in the creation).

As of 09/30/2024, production outstanding amounts to €494,509.

2.4 – RECEIVABLES AND DEBTS:

Receivables and debts are valued at their nominal value. Receivables are, where applicable, depreciated to take into account the risks of irrecoverability.

Customer receivables subject to litigation are depreciated at 50% of the amount excluding tax.

2.5 – FACTORING:

As of 09/30/2024, customer receivables assigned to “BNP Factor” amount to €(3,573,259).

In other receivables, the retention of security from “BNP Factor” amounts to €418,873, unavailable assignments for €311,011 and outstanding amounts to €(308,104).

There are two factoring contracts with BNP Factor for domestic (national territory) for an amount of €4,000,000 and export (outside France) for an amount of €3,000,000. These contracts are renewed by tacit agreement.

2.6- RECEIVABLES AND DEBTS REPRESENTED BY COMMERCIAL INSTRUMENTS:

2.7– TRANSACTIONS IN FOREIGN CURRENCIES:

Debts to suppliers of goods are essentially assessed on the basis of the coverage rate resulting from purchases of currency forward contracts for the financial year following the closing.

Cash and uncovered term debts are valued based on the closing exchange rate.

The difference resulting from the discounting of receivables and debts is entered in the balance sheet as a “conversion difference”.

2.8- EXCHANGE RISKS:

As of 09/30/2024, the company’s position regarding exchange rate risk can be summarized as follows: