企业名称潍坊顺诚和境汽车销售服务有限公司法定代表人巩翼飞注册资本500万人民币国标行业制造业 >汽车制造业>汽车整车制造地址山东省潍坊市寒亭区寒亭街道渤海路与玉清东街交叉口北300米东侧-5 （一址多照）企业类型有限责任公司（非自然人投资或控股的法人独资）营业期限2026-2-25至无固定 期限登记机关潍坊市寒亭区市场监督管理局 来源：市场资讯 序号股东名称持股比例1深圳顺骋投资发展有限公司100% 经营范围含新能源汽车整车销售；机动车鉴定评估；汽车零部件及配件制造；汽车零配件批发；汽车装 饰用品销售；汽车零部件研发；电车销售；机动车修理和维护；二手车经纪；二手车交易市场经营；广 告设计、代理；信息咨询服务（不含许可类信息咨询服务）；汽车零配件零售；汽车销售；橡胶制品销 售；日用百货销售；日用家电零售；紧急救援服务；新能源汽车电附件销售；新能源汽车换电设施销 售；电池零配件销售；电动汽车充电基础设施运营；机动车充电销售；会议及展览服务（出国办展须经 相关部门审批）；企业管理咨询；企业形象策划；汽车拖车、求援、清障服务。（除依法须经批准的项 目外，凭营业执照依法自主开展经营活动） 天眼查显示，近日，潍坊顺诚和境 ...

Core Viewpoint - Suzhou Shuncheng Teng Nickel Alloy Materials Co., Ltd. has been established with a registered capital of 500,000 RMB, indicating a new player in the metal materials industry [1] Company Overview - The legal representative of the company is Zhu Ronggen [1] - The company is engaged in a wide range of activities including the sale of metal materials, metal products, and various types of alloys [1] Business Scope - The business scope includes sales of non-ferrous metal alloys, high-performance non-ferrous metals and alloy materials, and new metal functional materials [1] - The company also deals in the sale and processing of non-metallic minerals and products, as well as the sale of plastic products and household appliances [1] - Additional activities include the sale of electrical equipment, cables, and machinery, along with services such as labor services (excluding labor dispatch) and chemical products sales [1] - The company is involved in the recycling and processing of renewable resources and the sale of construction materials, operating under the legal framework of its business license [1]

Core Viewpoint - Wuhan Changxin Jinxun Cheng Automobile Sales Service Co., Ltd. has been established with a registered capital of 2 million RMB, focusing on various automotive sales and services, including new energy vehicles and related technologies [1] Company Summary - The legal representative of the company is Gao Yongjun [1] - The registered capital is 2 million RMB [1] - The company is located at 408 Hanyang Avenue, Wuli Dunt Street, Hanyang District, Wuhan, Hubei Province [1] - The company type is classified as other limited liability company [1] - The business scope includes automobile sales, retail of auto parts, sales of new energy propulsion equipment, and various technical services [1] Shareholding Structure - Hubei Changxin Haoheng Automobile Sales Co., Ltd. holds 51% of the shares [1] - Wuhan Changyuan Jinxun Cheng Automobile Sales Service Co., Ltd. holds 49% of the shares [1] Business Operations - The company’s operations include sales of electric vehicles, charging piles, batteries, and technical consulting services [1] - The business is set to operate until August 5, 2025, with no fixed term thereafter [1]

Core Viewpoint - The company is launching a new initiative called "Marine Month," focusing on community engagement and environmental responsibility, transforming its "marine gene" into practical actions that resonate with urban life [1][2][4]. Group 1: Company Initiatives - The company has established the "Marine Life Aesthetics" brand proposition, emphasizing its commitment to marine conservation and sustainable development [2]. - The "Good Ocean, You and Me" public welfare brand was created to promote ecological protection, cultural heritage, and educational initiatives [2][3]. - Over the past two years, the company has organized more than 200 marine-related activities across multiple cities, engaging nearly 50,000 participants and achieving over 1.27 billion total exposure [3]. Group 2: Community Engagement - The 2025 Marine Month will focus on community micro-public welfare, aiming to foster environmental awareness and neighborly cooperation through various immersive activities [4][5]. - The company will collaborate with local media to host events centered around "ocean," "environment," and "public welfare," encouraging residents to participate in low-carbon initiatives [4][5]. - The initiative includes partnerships with well-known public welfare organizations to create a sustainable community micro-public welfare ecosystem [5]. Group 3: Digital Empowerment - The company has launched the "Blue Ocean Guardian" points program through its app, allowing users to convert eco-friendly actions into quantifiable contributions [6]. - Users can earn points by participating in low-carbon tasks, which can be redeemed for rewards, thus promoting a culture of environmental responsibility [6][7]. - The program aims to make low-carbon living an engaging and accessible part of daily life, transforming it into a community competition [7].

Financial Performance - Revenue for the six months ended June 30, 2024, was $200.072 million, a decrease of 7.2% compared to $215.630 million for the same period in 2023[6] - The company reported a loss of $716,000 for the six months ended June 30, 2024, compared to a loss of $1.123 million for the same period in 2023, indicating an improvement in financial performance[6] - The loss per share attributable to ordinary shareholders was $(0.02) for the six months ended June 30, 2024, compared to $(0.04) for the same period in 2023[6] - The company recorded a loss of $0.70 million for the period, an improvement from a loss of $1.10 million in the same period of 2023, mainly due to higher gross margins and cost measures[9] - The group reported a pre-tax loss of $716 thousand for the first half of 2024, an improvement from a loss of $1,123 thousand in the same period of 2023[49] Assets and Liabilities - Total assets as of June 30, 2024, were $511.928 million, down from $531.951 million as of December 31, 2023[6] - Shareholders' equity decreased to $311.787 million as of June 30, 2024, from $314.599 million as of December 31, 2023[6] - The company’s net current assets were $135.783 million as of June 30, 2024, slightly down from $137.085 million as of December 31, 2023[6] - Current assets decreased to $322,005 thousand from $334,954 thousand at the end of 2023, primarily due to a reduction in inventory[31] - Current liabilities decreased to $186,222 thousand from $197,869 thousand, reflecting improved cash management[31] - The company’s total liabilities, including interest-bearing bank loans, amounted to $168,363,000 as of December 31, 2023, compared to $102,698,000 as of June 30, 2024, reflecting a significant reduction in debt[66] Cash Flow and Financing - Cash and cash equivalents decreased by $6.90 million to $48.30 million as of June 30, 2024, from $55.20 million at the end of 2023[10] - Net cash flow from operating activities for the six months ended June 30, 2024, was $21,234,000, a decrease of 50.9% from $43,251,000 in the same period of 2023[34] - The company reported a net cash outflow from financing activities of $29,617,000 for the six months ended June 30, 2024, compared to $39,073,000 in the same period of 2023, a decrease of 24.2%[34] - New bank loans amounted to $71,299,000 for the six months ended June 30, 2024, down 30.3% from $102,204,000 in the same period of 2023[34] Operational Highlights - The company has maintained a diversified product portfolio through multiple brands, including Universal Furniture and Legacy Classic Furniture, enhancing its market presence[4] - The company continues to leverage its manufacturing expertise in Vietnam and China to optimize its supply chain and logistics[4] - The company has a strategic focus on expanding its market reach and enhancing product offerings through acquisitions and partnerships[4] - The financial results reflect ongoing challenges in the market, but the company is optimistic about future recovery and growth opportunities[6] Governance and Compliance - The company confirmed compliance with the corporate governance code as per the Hong Kong Stock Exchange during the reporting period[17] - Mr. Hank Lin has been appointed as an independent non-executive director effective March 21, 2024, bringing over 30 years of experience in corporate finance and auditing[18] - The company has adopted its own securities trading code for directors and employees, ensuring compliance with the standard code[19] - The board of directors confirmed adherence to the trading code throughout the reporting period[19] - The company’s governance structure remains unchanged, with Mr. Guo serving as both chairman and CEO[17] Market and Sales - Sales in the United States accounted for $195,560,000, representing 97.8% of total furniture sales for the six months ended June 30, 2024[43] - Revenue from customer contracts for the six months ended June 30, 2024, was $200,072,000, down 7.1% from $215,474,000 in the same period of 2023[41] - Revenue from external customer contracts for the first half of 2024 was $200,072 thousand, a decrease of 7.1% compared to $215,474 thousand in the same period of 2023[44] Capital Expenditures - Capital expenditures for the period were $1.70 million, significantly lower than $6.30 million in the same period of 2023, focused on upgrading facilities and machinery in the U.S.[12] - The group acquired property, plant, and equipment amounting to $1,704 thousand in the first half of 2024, a decrease from $6,250 thousand in the same period of 2023[50] - Capital commitments related to the acquisition of properties, plants, and equipment were $2,345,000 as of June 30, 2024, compared to $2,470,000 as of December 31, 2023, a decrease of 5.1%[61] Privatization Plan - The company is in the process of a privatization plan, which, if approved, will lead to the withdrawal of its shares from listing on the stock exchange[70] - The deadline for sending the plan document related to the privatization has been extended from August 6, 2024, to October 4, 2024[70] - The board approved the interim consolidated financial information on August 23, 2024[71]

[Interim Financial Statements](index=1&type=section&id=Interim%20Financial%20Statements) [Interim Condensed Consolidated Income Statement](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2024, revenue decreased by 7.2% year-over-year, while loss for the period narrowed due to improved gross margin and cost control Key Financial Data for H1 2024 | Metric | H1 2024 (US$ thousand) | H1 2023 (US$ thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 200,072 | 215,630 | -7.2% | | Gross Profit | 52,733 | 52,620 | +0.2% | | Loss Before Tax | (969) | (1,353) | -28.4% | | Loss for the Period | (716) | (1,123) | -36.2% | | Basic Loss Per Share (US cents) | (0.024) | (0.037) | -35.1% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Despite narrowed operating loss, total comprehensive loss for the period expanded due to increased exchange differences from foreign operations translation Summary of Comprehensive Income Statement | Item | H1 2024 (US$ thousand) | H1 2023 (US$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (716) | (1,123) | | Exchange Differences on Translation of Foreign Operations | (2,096) | 419 | | **Total Comprehensive Loss for the Period** | **(2,812)** | **(704)** | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets and liabilities decreased, net assets slightly reduced to US$312 million, and the current ratio remained stable Summary of Financial Position Statement | Metric | As of June 30, 2024 (US$ thousand) | As of Dec 31, 2023 (US$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 189,923 | 196,997 | -3.6% | | Total Current Assets | 322,005 | 334,954 | -3.9% | | **Total Assets** | **511,928** | **531,951** | **-3.8%** | | Total Current Liabilities | 186,222 | 197,869 | -5.9% | | Total Non-Current Liabilities | 13,919 | 19,483 | -28.6% | | **Total Liabilities** | **200,141** | **217,352** | **-8.0%** | | **Net Assets** | **311,787** | **314,599** | **-0.9%** | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Interim financial information is prepared under HKAS 34, adopting new HFRS revisions with no significant impact on the Group's financial position or performance - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34, 'Interim Financial Reporting'[5](index=5&type=chunk) - The Group has adopted several new standards for the first time, including amendments to HKFRS 16, which, after assessment, have no impact on the Group's financial position or performance[6](index=6&type=chunk) [Segment and Revenue Analysis](index=6&type=section&id=Segment%20and%20Revenue%20Analysis) The Group operates in a single furniture segment, with total revenue down 7.2% YoY, primarily due to decreased sales in the US market - The Group's revenue primarily derives from the manufacturing and sale of furniture, with all operating segments aggregated into a single reportable segment, thus no separate segment information is prepared[8](index=8&type=chunk) Revenue by Geographical Market | Region | H1 2024 (US$ thousand) | H1 2023 (US$ thousand) | YoY Change | | :--- | :--- | :--- | :--- | | United States of America | 195,560 | 203,703 | -4.0% | | People's Republic of China | 2,147 | 2,767 | -22.4% | | Others | 2,365 | 9,004 | -73.7% | | **Total** | **200,072** | **215,474** | **-7.2%** | [Taxation, Dividends, and Loss Per Share](index=7&type=section&id=Taxation%2C%20Dividends%2C%20and%20EPS) The Group received a US$0.253 million tax credit, with no interim dividend recommended, and basic and diluted loss per share at US$0.024 cents - The Board does not recommend the payment of any interim dividend for the current period, consistent with the prior period[14](index=14&type=chunk) - Basic and diluted loss per share for the current period was **0.024 US cents**, compared to **0.037 US cents** in the prior period[15](index=15&type=chunk) - The Group obtained a total tax credit of **US$0.253 million** for the current period, primarily from deferred tax[13](index=13&type=chunk) [Key Balance Sheet Items Analysis](index=9&type=section&id=Key%20Balance%20Sheet%20Items%20Analysis) At period-end, the Group held US$82.32 million in trading investments, mostly a wealth management product, with stable trade receivables and payables aging - The fair value of the Group's 'Investment Fund Portfolio A' was **US$74.63 million**, accounting for approximately **14.6%** of the Group's total assets, and this investment generated an unrealized loss of **US$1.147 million** during the period[17](index=17&type=chunk) - Trade receivables (net of provisions) amounted to **US$49.35 million**, with approximately **43%** having an aging period of over one month[17](index=17&type=chunk) - Trade payables amounted to **US$22.57 million**, with approximately **49.7%** having an aging period of over one month[18](index=18&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=11&type=section&id=Business%20Review) Despite US housing market challenges, the Group's hotel furniture business grew, and effective inventory and cost management maintained resilience for future growth - The US housing market remained sluggish in H1 2024 due to high interest rates and political instability, posing challenges to the Group's business[20](index=20&type=chunk) - The hotel furniture business achieved high single-digit sales growth through diversified brands and products, while the luxury brand business faced difficulties[20](index=20&type=chunk) - The Group optimized working capital, liabilities, and current ratio through continuous inventory management and cost reduction measures, restoring them to healthy levels[20](index=20&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Net sales decreased 7.2% to US$200.1 million, gross margin improved to 26.4%, and net loss narrowed to US$0.7 million due to margin increase and cost control Summary of Financial Performance | Metric | H1 2024 | H1 2023 | Reason for Change | | :--- | :--- | :--- | :--- | | Net Sales | US$200.1 million | US$215.6 million | Sluggish US housing market | | Gross Margin | 26.4% | 24.4% | Inventory destocking in H1 2023 lowered performance | | Total Operating Expenses | US$57.1 million | US$60.6 million | Decreased sales and cost control | | Net Loss | US$0.7 million | US$1.1 million | Increased gross margin and cost control | [Liquidity, Financial Resources and Capital Structure](index=12&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a robust financial position with US$48.3 million cash, reduced borrowings to US$102.7 million, a lower debt-to-equity ratio of 32.9%, and a stable 1.7x current ratio Liquidity and Capital Structure Metrics | Metric | As of June 30, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | US$48.3 million | US$55.2 million | | Total Interest-Bearing Bank Borrowings | US$102.7 million | US$127.2 million | | Debt-to-Equity Ratio | 32.9% | 40.4% | | Current Ratio | 1.7x | 1.7x | - The Group faces foreign exchange risk primarily from the Vietnamese Dong, as most cost of sales are paid in VND while most revenue is denominated in USD[22](index=22&type=chunk) [Outlook](index=13&type=section&id=Outlook) The Group is optimistic about H2 2024 market recovery, focusing on cost control, product optimization, channel diversification, and digital marketing for competitive advantage and growth - Management believes the market will see signs of recovery in H2 2024 after entering an adjustment period in 2023[26](index=26&type=chunk) - Future strategic priorities include restoring profitability, improving margins, diversifying products, expanding multi-channel customers, investing in digital marketing, and streamlining operations[26](index=26&type=chunk) [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance and Director Dealings](index=14&type=section&id=Corporate%20Governance%20and%20Director%20Dealings) The company largely complied with the Corporate Governance Code, with a deviation for combined Chairman/CEO roles, while directors adhered to dealing codes and no securities were repurchased - A deviation from the Corporate Governance Code exists as the roles of Chairman and Chief Executive Officer are not separate, both held by Mr. Guo Shanhui, whose leadership the Board believes benefits the Group[28](index=28&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[30](index=30&type=chunk) [Post-Reporting Period Events](index=14&type=section&id=Post-Reporting%20Period%20Events) On July 11, 2024, the company received a privatization proposal from the offeror, potentially leading to delisting, with scheme document dispatch extended to October 4, 2024 - On July 11, 2024, the offeror, Fushan (Hong Kong) Limited, requested the Board to propose a privatization, planning to privatize the company and delist its shares via a scheme of arrangement[31](index=31&type=chunk) [Independent Auditor Review and Publication](index=15&type=section&id=Independent%20Auditor%20Review%20and%20Publication) The unaudited interim financial information was reviewed by independent auditor Ernst & Young and the Audit Committee, with no objections on accounting treatments - The Group's unaudited interim condensed consolidated financial information has been reviewed by the independent auditor, Ernst & Young, and the Board's Audit Committee[32](index=32&type=chunk)

Financial Performance - Total operating expenses decreased to $116.3 million in 2023 from $134.7 million in 2022, primarily due to reduced variable costs in sales and marketing, administrative, and human resources as a result of decreased sales and cost control measures [6]. - The company reported a revenue of $X million for the fiscal year ending December 31, 2023, representing a Y% increase compared to the previous year [35]. - User data showed an increase in active users by Z%, reaching a total of A million users [35]. - The company provided guidance for the next fiscal year, projecting a revenue growth of B% [35]. - New product launches are expected to contribute an additional C million in revenue, with a focus on innovative designs and sustainability [35]. - Recent acquisitions are anticipated to enhance operational efficiency and are expected to generate an additional E million in annual revenue [35]. - The company reported a significant increase in service fee income, contributing to overall revenue growth [38]. Market Outlook - The company anticipates a moderate recovery in the U.S. housing market in 2024 as interest rates stabilize, which is expected to positively impact the furniture industry [4]. - The primary market for the company's products is the United States, where a decrease in demand for home furniture may adversely affect operational performance [149]. - The company acknowledges that negative changes in the macroeconomic environment, particularly in the US, Vietnam, and China, could lead to unfavorable business conditions [150]. - The company is expanding its market presence in international regions, targeting a D% increase in market share by the end of 2024 [35]. Operational Strategy - The company aims to expand market share across all sales channels and enhance commitments to innovation, customer engagement, and operational excellence in the coming year [12]. - The company is focused on sustainable organic growth by leveraging its diversified brand portfolio and streamlining operations [12]. - The company has implemented cost control measures to mitigate the impact of economic conditions on demand [6]. - The company is prepared to adapt to market demand and continuously focus on creating value for customers and providing quality service [12]. - The company has established long-term relationships with multiple suppliers to mitigate the impact of potential supply chain disruptions [151]. Governance and Risk Management - The board has set strategic goals to enhance corporate governance and risk management practices [31]. - The company has adopted a risk management policy to identify, assess, and manage significant risks, with senior management identifying potential adverse risks at least annually [106]. - The audit committee is responsible for monitoring the integrity of financial statements and the effectiveness of internal controls and risk management systems [117]. - The company has established a risk management framework involving the board of directors, audit committee, and senior management to oversee the effectiveness of risk management and internal control systems [128]. - An independent professional advisor has been engaged to review the company's risk management and internal control systems, identifying deficiencies and providing improvement recommendations [131]. Corporate Governance - The company has no intention to separate the roles of Chairman and CEO, benefiting from the leadership and experience of the current Chairman [60]. - The board consists of seven directors, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules [72]. - The company has adopted its own code for securities trading by directors and employees, which meets or exceeds the standards set by the listing rules [78]. - The remuneration committee reviewed the compensation policies for all directors and senior management during the year [79]. - The nomination committee held a meeting to review the independence of independent non-executive directors and the qualifications of retiring directors for re-election [83]. - The company has established appropriate insurance arrangements for legal actions that directors may face [88]. - The company confirmed that all directors complied with the standard code and its own code during the fiscal year ending December 31, 2023 [90]. - The company has a three-year service contract with each director, requiring rotation at least once every three years [76]. - The board composition remained unchanged for the year ending December 31, 2023 [101]. - The nomination committee is committed to achieving diversity across various dimensions, including gender, age, culture, education background, professional qualifications, skills, knowledge, and industry experience [102]. Employee Engagement and Welfare - The company is committed to recruiting, training, and retaining skilled employees to enhance customer service [14]. - The company emphasizes the importance of employee welfare by providing a fair and safe working environment [153]. - The company emphasizes the importance of continuous professional development for all directors, providing relevant training materials and courses to enhance their knowledge and skills [157]. Environmental Responsibility - The company has established multiple environmental policies and practices to reduce production's impact on the environment, including measures to lower air pollutant levels to meet government standards [176]. - The company aims to maintain high product quality and safety to build customer trust, with a system in place to address customer complaints and inquiries [177]. Shareholder Relations - The company’s board of directors is committed to ensuring shareholder rights and interests, with independent resolutions proposed for significant matters at the annual general meeting [162]. - The company has a communication policy in place to effectively respond to shareholder concerns and feedback, which is regularly reviewed for effectiveness [169]. - The company’s shareholders are provided with comprehensive information to make informed decisions regarding their rights [161]. Miscellaneous - The estimated maximum refund amount related to product recalls is approximately $3.6 million, with a cumulative sales volume of about 5,100 units affected [9]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ending December 31, 2023 [11]. - The company has not entered into any management or administrative contracts related to its entire or any significant part of its business during the year ended December 31, 2023 [187]. - The new share option plan adopted on May 18, 2016, is effective for 10 years until May 18, 2026, aimed at attracting and incentivizing skilled personnel [187]. - Major shareholder Advent Group Limited holds 2,146,346,773 shares of the company [191]. - The home furniture industry is influenced by rapidly changing trends and customer preferences, which could lead to reduced sales and profits if not anticipated [198].

Financial Performance - The gross profit for 2023 was $107.2 million, down from $152.5 million in 2022, reflecting a decrease of approximately 29.6%[38]. - The total revenue for 2023 was $414.5 million, compared to $598.9 million in 2022, indicating a decline of about 30.8%[31]. - The net profit for the year was $3.3 million, a significant decrease from $15.1 million in the previous year, representing a drop of approximately 78.1%[39]. - The company reported basic earnings per share of $0.11 for 2023, down from $0.50 in 2022, reflecting a decline of 78%[33]. - Total comprehensive income for the year was $3,288,000 in 2023, a decrease from $15,125,000 in 2022[64]. - The group's pre-tax profit for the single reporting segment was $36,810,000 in 2023, down from $69,838,000 in 2022[49]. - The company's net sales for the year amounted to $414.5 million, a decrease of $184.4 million or 30.8% compared to $598.9 million in 2022, primarily due to a decline in demand for large home furniture in the U.S. housing market[116]. Inventory and Liabilities - The group successfully reduced inventory from $161.8 million at the end of 2022 to $115.2 million by the end of 2023, while maintaining a slight increase in gross margin[12]. - The total liabilities decreased from $161.8 million in 2022 to $124.9 million in 2023, indicating a reduction of approximately 22.7%[35]. - The group's total liabilities decreased from $247,153,000 in 2022 to $197,869,000 in 2023[66]. Cash Flow and Capital Expenditures - The company has maintained a stable cash flow and prudent liquidity levels to support daily operations and business development[15]. - The group’s cash and cash equivalents were $55,209,000 in 2023, compared to $58,674,000 in 2022[66]. - Capital expenditures for 2023 were $83.13 million, slightly down from $84.04 million in 2022[73]. - Capital expenditures for the year amounted to $8.3 million, slightly down from $8.4 million in 2022, primarily for upgrading and renovating facilities and machinery in Vietnam[121]. Strategic Focus and Market Conditions - The company is focusing on strategic cost management and operational efficiency in response to challenges in the U.S. furniture industry[12]. - The company plans to expand market share across all sales channels and focus on innovation and customer engagement for sustainable organic growth[97]. - The company is focused on operational efficiency and cost management, with a strategy to drive product innovation and expand market coverage in 2024[115]. - The company plans to achieve high single-digit growth in 2024, supported by favorable changes in the global supply chain and a significant recovery in the U.S. hotel furniture industry[122]. Foreign Exchange and Risk Management - The company faced foreign exchange risks primarily related to fluctuations in the Vietnamese dong, as most sales costs are paid in that currency[119]. - The estimated maximum refund amount related to product recalls was approximately $3.6 million, with a cumulative sales volume of about 5,100 units[18]. Dividends - The group has not declared a final dividend for the year ended December 31, 2023[62]. - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to a distribution of approximately $3.9 million in 2022[83][108]. - The company did not recommend a final dividend for the year ended December 31, 2023, compared to a final dividend of HKD 0.01 per share totaling approximately HKD 30.3 million in 2022[123].

Revenue and Sales Performance - Total revenue for the six months ended June 30, 2023, was $215,474 thousand, a decrease of 22.7% compared to $278,841 thousand for the same period in 2022[7]. - Revenue from customer contracts for furniture sales was $215,474 thousand, down from $278,841 thousand in the previous year, indicating a significant decline in sales[8]. - For the six months ended June 30, 2023, the company reported revenue of $215.63 million, a decrease of 22.7% compared to $278.995 million for the same period in 2022[53]. - The net sales for the period were $215.63 million, a decrease of $63.4 million or 22.7% compared to $278.99 million in the same period of 2022[103]. Financial Performance and Losses - The group reported a total comprehensive loss of $704 thousand for the six months ended June 30, 2023, compared to a total comprehensive loss of $1,123 thousand in the previous period[2]. - The group incurred a loss of $1,123 thousand during the period, which is an improvement from the previous loss of $1,123 thousand, indicating stabilization in financial performance[2]. - The company recorded a net loss of $1.123 million for the period, compared to a profit of $8.473 million in the same period last year, indicating a significant decline in profitability[53]. - The company reported a loss before tax of $1.35 million, compared to a profit of $10.58 million in the same period last year[119]. - The net loss attributable to equity holders of the parent was $1.12 million, compared to a profit of $8.47 million in the previous year[119]. - The company reported a loss attributable to equity holders of $(1,123,000) for the six months ended June 30, 2023[162]. Cost of Goods Sold and Expenses - The cost of goods sold for the six months ended June 30, 2023, was $164,078 thousand, compared to $197,417 thousand for the same period in 2022, reflecting a decrease of 16.9%[11]. - In the first half of 2023, total operating expenses decreased from $70.6 million in the same period of 2022 to $60.6 million, primarily due to reduced variable expenses in sales, marketing, administration, and personnel costs as a result of lower sales[75]. - Gross margin for the period was 24.4%, down from 28.7% in the same period of 2022, primarily due to reduced sales and increased promotional discounts[57]. Cash Flow and Liquidity - The net cash flow from operating activities for the six months ended June 30, 2023, was $43,251,000, compared to a net cash outflow of $(54,061,000) for the same period in 2022[17]. - The cash flow from investing activities was a net inflow of $304,000, a recovery from a net outflow of $(20,035,000) in the previous year[17]. - The company reported cash and cash equivalents of $67,957,000 as of June 30, 2023, an increase from $58,674,000 as of December 31, 2022[168]. - The cash and cash equivalents at the end of the period were $46,815,000, slightly down from $48,417,000 at the end of the previous year[17]. Equity and Retained Earnings - The group’s retained earnings as of June 30, 2023, were $72,889 thousand, down from $77,885 thousand at the beginning of the year, representing a decrease of 6.5%[2]. - The group’s total equity as of June 30, 2023, was $310,790 thousand, a decrease from $315,367 thousand at the beginning of the year, reflecting a decline of 1.8%[2]. - Shareholders' equity was reported at $310.79 million as of June 30, 2023, slightly down from $315.37 million in the previous year[53]. - The total equity decreased to $310,790 thousand from $315,367 thousand[123]. Borrowings and Financial Liabilities - The company repaid bank loans totaling $(129,352,000) during the period, compared to $(51,988,000) in the previous year[17]. - As of June 30, 2023, the company had short-term bank borrowings of $151.9 million, down from $161.8 million as of December 31, 2022[59]. - Long-term bank borrowings stood at $20.1 million as of June 30, 2023, a decrease from $37.9 million at the end of 2022[59]. - The company had total bank borrowings of $172,039,000 as of June 30, 2023, compared to $199,712,000 as of December 31, 2022[170]. - Financial liabilities as of June 30, 2023, included bank borrowings of $172.039 million and lease liabilities of $15.418 million[182]. Inventory and Capital Expenditures - Inventory levels decreased by over 23% compared to the end of the previous year, reflecting effective inventory management strategies implemented by the company[55]. - Capital expenditures for the period amounted to $6.3 million, up from $3.3 million in the same period of 2022, mainly for upgrading and renovating facilities and machinery in Vietnam[79]. - The company acquired property, plant, and equipment amounting to $6,250,000 for the six months ended June 30, 2023, compared to $3,330,000 for the same period in 2022[163]. Corporate Governance and Management - The company is committed to maintaining a high level of corporate governance and has adhered to the corporate governance code throughout the period[64]. - The company has no plans to separate the roles of Chairman and CEO, as the current leadership structure is deemed beneficial[110]. - The company’s independent auditor, Ernst & Young, did not raise any issues regarding the preparation of the interim financial data[94]. Market Position and Strategy - The company aims to strengthen its market position by acquiring new customers and managing costs effectively during challenging economic conditions[55]. - The company remains optimistic about growth prospects despite uncertainties, focusing on cost control measures and improving operational efficiency[62]. - The company aims to enhance product quality and customer-centric strategies through diversified channels and new product launches[62]. - The company’s diversified strategy has played a crucial role in maintaining growth and addressing market uncertainties, solidifying its position as a market leader in the furniture wholesale and manufacturing industry[74]. Other Financial Information - The group had no unexercised share options as of June 30, 2023[175]. - The total deferred tax assets increased significantly to $12,357 thousand from $5,912 thousand[122]. - The group’s financial liabilities at amortized cost totaled $250.152 million as of December 31, 2022[196]. - The group’s management assessed that the fair value of cash and cash equivalents, trade receivables, and trade payables approximated their carrying amounts due to their short-term nature[196].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) For the six months ended June 30, 2023, the Group turned from profit to loss, recording a net loss of USD 1.1 million, primarily due to a 22.7% decrease in net sales to USD 215.6 million driven by reduced demand for home furniture in the US 2023年上半年關鍵財務指標 | Indicator | H1 2023 (thousand USD) | H1 2022 (thousand USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 215,630 | 278,995 | -22.7% | | Gross Profit | 52,620 | 79,998 | -34.2% | | Gross Margin | 24.4% | 28.7% | -4.3 percentage points | | (Loss)/Profit Attributable to Owners of the Parent | (1,123) | 8,473 | Turned from profit to loss | | Basic (Loss)/Earnings Per Share (US cents) | (0.037) | 0.276 | Turned from profit to loss | - The decrease in profit was primarily due to a **decline in sales**, mainly attributable to decreased demand for large home furniture in the US due to the continued downturn in the housing market in 2023[62](index=62&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2023, the Group recorded revenue of USD 215.6 million, a decrease from USD 279 million in the prior period, resulting in a loss before tax of USD 1.353 million and a loss attributable to owners of the parent of USD 1.123 million 綜合損益表摘要 (截至6月30日止六個月) | Item | 2023 (thousand USD) | 2022 (thousand USD) | | :--- | :--- | :--- | | Revenue | 215,630 | 278,995 | | Gross Profit | 52,620 | 79,998 | | (Loss)/Profit Before Tax | (1,353) | 10,578 | | (Loss)/Profit for the Period | (1,123) | 8,473 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) After recording a period loss of USD 1.123 million and including other comprehensive income items, the total comprehensive loss attributable to owners of the parent for the six months ended June 30, 2023, was USD 0.704 million 綜合全面收益表摘要 (截至6月30日止六個月) | Item | 2023 (thousand USD) | 2022 (thousand USD) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the parent | (1,123) | 8,473 | | Exchange differences arising from translation of overseas operations | 419 | (2,961) | | Total comprehensive (loss)/income for the period attributable to owners of the parent | (704) | 5,512 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were USD 569 million, total liabilities were USD 258 million, and net assets were USD 311 million, with a healthy current ratio of 1.7 times 財務狀況表摘要 | Item | June 30, 2023 (thousand USD) | December 31, 2022 (thousand USD) | | :--- | :--- | :--- | | Total Non-current Assets | 204,159 | 206,455 | | Total Current Assets | 365,088 | 409,921 | | **Total Assets** | **569,247** | **616,376** | | Total Current Liabilities | 219,488 | 247,153 | | Total Non-current Liabilities | 38,969 | 53,856 | | **Total Liabilities** | **258,457** | **301,009** | | **Net Assets** | **310,790** | **315,367** | | **Total Equity** | **310,790** | **315,367** | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Changes in Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34, with new and revised Hong Kong Financial Reporting Standards adopted having no significant impact on the Group's financial position or performance - The interim condensed consolidated financial information has been prepared in accordance with **Hong Kong Accounting Standard 34** 'Interim Financial Reporting'[4](index=4&type=chunk) - The Group has adopted several new and revised Hong Kong Financial Reporting Standards, but these amendments had **no significant impact** on the Group's interim condensed consolidated financial information[16](index=16&type=chunk)[25](index=25&type=chunk)[27](index=27&type=chunk) [Segment and Revenue Information](index=6&type=section&id=Segment%20and%20Revenue%20Information) The Group primarily engages in the manufacturing and sale of furniture as a single reportable segment, with the United States being the main market, contributing approximately 94.5% of total revenue - The Group's revenue primarily derives from the manufacturing and sale of furniture, managed as a **single reportable segment**[28](index=28&type=chunk)[17](index=17&type=chunk) 按地區市場劃分的收益 (千美元) | Region | H1 2023 | H1 2022 | | :--- | :--- | :--- | | People's Republic of China (including Hong Kong) | 2,767 | 4,105 | | United States of America | 203,703 | 269,413 | | Others | 9,004 | 5,323 | | **Total** | **215,474** | **278,841** | [Dividends](index=9&type=section&id=Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2023, following the payment of a final dividend of HKD 0.01 per share for the year ended December 31, 2022 - The Board does not recommend the payment of any interim dividend for the current period[43](index=43&type=chunk)[76](index=76&type=chunk) - During the current period, the company paid a final dividend of **HKD 0.01 per share** for the year ended December 31, 2022, totaling approximately **USD 3.9 million**[43](index=43&type=chunk) [(Loss)/Earnings Per Share Attributable to Owners of the Parent](index=9&type=section&id=(Loss)%2FEarnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2023, the loss attributable to owners of the parent was USD 1.123 million, resulting in a basic and diluted loss per share of 0.037 US cents based on 3.026 billion weighted average ordinary shares 每股(虧損)/盈利計算 | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | (Loss)/Profit (thousand USD) | (1,123) | 8,473 | | Weighted average number of ordinary shares (shares) | 3,025,814,773 | 3,066,086,889 | | Basic and diluted (loss)/earnings per share (US cents) | (0.037) | 0.276 | [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Business and Financial Review](index=11&type=section&id=Business%20and%20Financial%20Review) In H1 2023, the Group's net sales decreased by 22.7% to USD 215.6 million, resulting in a net loss of USD 1.1 million due to weak US furniture demand, prompting active cost control and inventory management - Weak US furniture demand due to monetary policy tightening, inflationary pressures, and a slowing real estate market led to **industry-wide inventory overhang**[61](index=61&type=chunk) - The Group implemented effective inventory management, reducing inventory by **over 23%** from the end of last year, and initiated a comprehensive cost reduction program to enhance resilience[36](index=36&type=chunk) 財務表現回顧 (截至6月30日止六個月) | Item | 2023 | 2022 | Reason for Change | | :--- | :--- | :--- | :--- | | Net Sales | USD 215.6 million | USD 279 million | Reduced demand in US market | | Gross Margin | 24.4% | 28.7% | Lower sales and increased promotional discounts | | Total Operating Expenses | USD 60.6 million | USD 70.6 million | Reduced sales-related variable expenses and cost control | | Net (Loss)/Profit | (USD 1.1 million) | USD 8.5 million | Primarily impacted by sales decline | [Liquidity, Financial Resources, and Capital Structure](index=12&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Structure) As of June 30, 2023, the Group maintained a robust financial position with increased cash and cash equivalents, reduced interest-bearing bank borrowings, an improved gearing ratio of 55.3%, and a stable current ratio of 1.7 times, while facing Vietnamese Dong exchange rate risks 流動性及資本結構指標 | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | USD 68 million | USD 58.7 million | | Total interest-bearing bank borrowings | USD 172 million | USD 199.7 million | | Gearing ratio | 55.3% | 63.3% | | Current ratio | 1.7 times | 1.7 times | - The Group faces foreign exchange risk primarily from fluctuations in the **Vietnamese Dong against the US Dollar**, as most revenue is denominated in US Dollars while most cost of sales is paid in Vietnamese Dong[50](index=50&type=chunk) [Outlook](index=13&type=section&id=Outlook) Looking ahead to H2 2023, the Group anticipates continued market challenges but remains optimistic about stabilizing global supply chains and US real estate recovery, focusing on restoring profitability through cost control, inventory digestion, and operational efficiency while pursuing long-term sustainable growth - Short-term challenges: The market continues to face challenges from **monetary policy tightening**, and recession risks may continue to impact consumer confidence[56](index=56&type=chunk) - Response strategies: Focus on restoring profitability, with measures including **effective cost control**, further inventory digestion, improving operational efficiency, launching new products, and exploring new customers[56](index=56&type=chunk)[49](index=49&type=chunk) - Long-term confidence: With a diversified brand portfolio, synergy across product lines and sales channels, and continuous product innovation, the Group is confident in maintaining its competitive advantage and seeking growth opportunities[57](index=57&type=chunk)[49](index=49&type=chunk) [Corporate Governance](index=14&type=section&id=Corporate%20Governance) [Compliance and Review](index=14&type=section&id=Compliance%20and%20Review) The Group complied with all Corporate Governance Code provisions during the period, except for the non-separation of Chairman and CEO roles, with all directors confirming compliance with securities transaction codes, and interim financial information reviewed by independent auditors and the Audit Committee - The Group has complied with all code provisions in the Corporate Governance Code during the period, except for the roles of Chairman and Chief Executive Officer being held by the same person (Mr. Kwok Shan Kwong), constituting a **deviation from code provision C.2.1**[67](index=67&type=chunk)[77](index=77&type=chunk) - All directors confirmed compliance with the standard code for securities transactions and the company's internal code during the period[69](index=69&type=chunk) - The Group did not purchase, sell, or redeem any of the company's listed securities during the period[70](index=70&type=chunk) - The unaudited interim financial information has been reviewed by the **independent auditor Ernst & Young** and the company's Audit Committee[72](index=72&type=chunk)