Hi,
Well, it's you who said you wanted to remove the old orders:
(with removing old orders)
So I was answering to that.
The order number is generated from the order_id. The order_id is automatically incremented for each new order created. For the order number to start at 1 in the new year, it means that the order_id also need to start at 1 and thus the order table has to be emptied.
If you want to reset the order number at 1 every year without deleting all the orders, it requires the development of a plugin.
You would have to implement the event onBeforeOrderNumberGenerate(&$data, &$result) in your custom plugin.
In it, you would first load the maximum order_number of all the orders already created since the 1st day of the current year with a MySQL query, and then increment it by 1 and set $result with that new number.