Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 525.6 million, a decrease of 36.5% compared to RMB 827.9 million in 2023[19]. - The company recorded a loss attributable to equity holders of RMB 334.4 million, a reduction of 12.4% from RMB 381.5 million in the previous year[10]. - The group reported a net loss of approximately RMB 348 million for the year ending December 31, 2024[86]. - Cash and cash equivalents decreased to RMB 20.5 million from RMB 29.3 million year-on-year[26]. - Current liabilities exceeded current assets by approximately RMB 699 million as of December 31, 2024[86]. - The company’s distributable reserves as of December 31, 2024, were RMB 872,728,000[131]. Gross Margin and Expenses - The overall gross margin improved from 3.2% in 2023 to 6.7% in 2024, primarily due to a slight improvement in the furniture business's gross margin[19]. - Sales and distribution expenses decreased by 39.4% to approximately RMB 100.2 million, primarily due to a significant reduction in promotional and exhibition activities[20]. - Financing costs increased by 18.7% to RMB 171.7 million, attributed to higher average borrowings and interest rates[21]. - Inventory decreased by 10.3% to approximately RMB 271.4 million, primarily due to provisions for slow-moving inventory[24]. Business Operations - The hotel business in Zengcheng District, Guangzhou, saw a revenue increase of approximately 30.2% year-on-year[10]. - The company closed three directly operated stores, resulting in a one-time impairment provision but stopped ongoing monthly losses from these stores[9]. - The number of sales outlets increased by 0.1% year-on-year to 1,960, despite a decrease in orders from dealers[9]. - The company aims to leverage its brand and new spokesperson to expand sales channels and enhance operational efficiency[11]. Corporate Governance - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors as of December 31, 2024[41]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance shareholder value[36]. - The audit committee held four meetings in 2024 to ensure the accuracy of the company's financial statements, including the review of the financial performance for the year ending December 31, 2023, and the interim results for the six months ending June 30, 2024[67]. - The company has adopted a code of conduct for directors' securities trading that meets or exceeds the standards set forth in the listing rules[37]. Shareholder Engagement - The company has adopted a shareholder communication policy to maintain effective communication channels, including annual general meetings and the company website[93]. - The annual general meeting serves as a platform for constructive engagement with shareholders, allowing them to raise concerns and suggestions[94]. - Shareholders holding at least one-tenth of the paid-up capital have the right to request the board to convene a special general meeting[98]. - The company emphasizes transparent communication with institutional investors to enhance transparency and gather feedback, ensuring equal access to information for all shareholders[103]. Risk Management - The company identifies significant risks related to its financial condition and operational performance, particularly the reliance on the Chinese furniture market, which may adversely affect business performance if the market remains sluggish[138]. - The board has reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2024, and found them to be effective and appropriate[92]. Management and Leadership - The management team includes experienced individuals with over 30 years in international trade and corporate management, enhancing the company's strategic direction[106][107]. - The company has a strong management team with diverse backgrounds in finance and investment, enhancing its strategic decision-making capabilities[112][113][114]. - The CEO, Lin Ru Hai, also serves as the chairman, providing strong and stable leadership for the group[45]. Future Outlook - The company anticipates continued implementation of stable growth policies by the Chinese government, including further easing of real estate market restrictions and promoting technological innovation[34]. - The management remains optimistic about future engineering project developments despite a slight decline in project business due to overall weak commercial activity[10]. - By 2025, the group plans to optimize its financial structure and will consider asset sales to repay bank loans, aiming to reduce debt and financial costs[34]. Employee Relations - The company emphasizes the importance of sustainable relationships with employees, customers, and business partners, ensuring a fair and safe work environment and competitive compensation[136]. - The company is committed to providing sufficient training and development resources to employees to enhance their performance and self-worth[136]. Share Capital and Securities - As of December 31, 2024, the company has a total of 2,598,561,326 shares issued, with a significant portion (74.86%) held by Mr. Xie Jinpeng and related entities[148][154]. - The performance share award plan allows for a maximum of 5% of the total issued shares, equating to 129,928,066 shares[164]. - The trustee has purchased and held a total of 120,690,000 shares under the performance share award plan, representing approximately 4.64% of the total issued shares[169].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 ROYALE HOME HOLDINGS LIMITED 皇朝家居控股有限公司* （於開曼群島註冊成立之有限公司） （股份代號：1198） 截至二零二四年十二月三十一日止年度全年業績 業 績 皇 朝 家 居 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 四 年 十 二 月 三 十 一 日 止 年 度 之 綜 合 業 績 連 同 截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 年 度 之 比 較 數 字。截 至 二 零 二 四 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 已 經 由 本 公 司 審 核 委 員 會 審 閱。 * 僅供識別 – 1 – 綜合損益表 截至二零二四年十二月三十一日止年度 | | ...

릴朝家尼 0 [ 2024 中期報告 U U 皇朝家居控股有限公司* |* 股份代號: 1198 *值供磁別 ..... ● ● ● ● ● ● 皇朝家居控股有限公司 二零二四年中期報告 公司資料 | --- | --- | |---------------------------------------------------------|---------------------------------------------------------------------------------| | | | | 董事 | 提名委員會 | | 執行董事 | 劉智傑先生 （主席） | | 林如海先生 （主席兼首席執行官） 謝錦鵬先生 （聯席主席） | 余文耀先生 陳永德先生 | | 非執行董事 | 公司秘書 | | 吳中明先生 | 徐思禮先生 | | 陶穎先生 姚景銘先生 | 核數師 | | 楊瑩女士 | 安永會計師事務所 | | 獨立非執行董事 | 有關香港法例的法律顧問 | | 劉智傑先生 余文耀先生 | 麥振興律師事務所 | | 陳永德先生 | 主要往來銀行 | | 審核委員會 | | | 余文耀先 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 ROYALE HOME HOLDINGS LIMITED 皇朝家居控股有限公司* （於開曼群島註冊成立之有限公司） （股份代號：1198） 中期業績 截至二零二四年六月三十日止六個月 業 績 皇 朝 家 居 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）公 佈 本 公 司 及 其 附 屬 公 司 （統 稱「本 集 團」）截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月（「期 內」）之 未 經 審 核 中 期 簡 明 綜 合 業 績 連 同 二 零 二 三 年 同 期 之 比 較 數 字。期 內 中 期 業 績 已 經 由 本 公 司 審 核 委 員 會 審 閱，並 獲 董 事 會 批 准。 * 僅供識別 – 1 – 簡明綜合損益表 截至二零二四年六月三十日止六個月 截至六月三十日止六個月 二零二四年 二零二三年 ...

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a sales revenue decline of 43.4% to RMB 827.9 million[13]. - The gross profit margin decreased significantly from 14.4% to 3.2% year-on-year[13]. - The company recorded a net loss attributable to shareholders of RMB 381 million for the year[13]. - The company recorded revenue of RMB 827.9 million for the year ended December 31, 2023, a decrease of 43.3% compared to RMB 1,461.0 million in 2022 due to the termination of the merchandise trading business[18]. - The overall gross profit margin fell from 14.4% in 2022 to 3.2% in 2023, with the furniture business gross profit margin decreasing from 24.6% to 7.4%[18]. - The company reported a loss of RMB 386.0 million for the year, a significant decline of 3,727.5% compared to a profit of RMB 10.6 million in 2022[18]. - Selling and distribution expenses increased by 44.9% to approximately RMB 165.4 million, primarily due to increased promotional activities[18]. - Administrative expenses rose by 20.6% to RMB 157.2 million, mainly due to increased consulting and guarantee fees related to bank and other borrowings[18]. - Financing costs increased by 20.8% to RMB 144.7 million due to higher average borrowings and interest rates[18]. - The company reported a pre-tax loss of RMB 419,118 thousand for the year ended December 31, 2023, compared to a loss of RMB 96,334 thousand in the previous year[163]. - The company incurred financing costs of RMB 144,670 thousand, an increase from RMB 119,795 thousand in the previous year[153]. Business Operations - The number of sales outlets increased by 1.7% year-on-year to 1,942[12]. - The company has deepened its collaboration with strategic shareholder Science City Group, leading to significant growth in furniture project sales[12]. - The company has adjusted product pricing and combinations to maintain competitiveness amid a slowdown in the real estate market[12]. - The hotel in Zengcheng, Guangdong, underwent upgrades and re-entered the market, with expectations for improved gross profit margins in the future[12]. - The company has focused on developing a comprehensive range of home products to meet current market demands[12]. - The company has increased discount promotions significantly, impacting gross margins and operating expenses[12]. - The group is focusing on developing a one-stop comprehensive home product line to meet current market demands[20]. - The group has terminated its commodity trading business, resulting in a significant reduction in revenue due to structural changes[21]. - The group has provided guarantees amounting to RMB 333 million during the year, secured by a 40% equity stake in an associate company[27]. - The company plans to actively pursue collaborations with commercial clients and participate in more government-led projects to expand its furniture engineering business[14]. Financial Position and Liquidity - As of December 31, 2023, the group's cash and cash equivalents were RMB 29.3 million, down from RMB 356.8 million in 2022, indicating a significant decrease in liquidity[23]. - The group's current ratio decreased to 0.96 as of December 31, 2023, compared to 1.16 in 2022, reflecting a decline in short-term financial health[23]. - The debt-to-asset ratio increased to 66% as of December 31, 2023, up from 56% in 2022, indicating a higher level of financial leverage[24]. - Current liabilities exceeded current assets by approximately RMB 96 million as of December 31, 2023[60]. - The company has bank and other loans amounting to RMB 1,816 million guaranteed by Science City, which has agreed to continue providing guarantees for existing and new loans up to RMB 2,000 million[60]. - The company successfully renewed or obtained new bank and other loans totaling RMB 356 million after the fiscal year-end[60]. - The company plans to seek opportunities to sell certain equity interests to improve liquidity[171]. - The company aims to improve operational performance and accelerate the collection of outstanding sales proceeds and other receivables[60]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance shareholder value[30]. - The board of directors consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors as of December 31, 2023[35]. - The company emphasizes the importance of effective internal controls and risk management measures in its corporate governance practices[30]. - The company has a governance structure that allows for effective decision-making and implementation of business strategies, with the roles of Chairman and CEO currently held by the same individuals[37]. - The board has established procedures to address potential conflicts of interest, ensuring independent directors are present to handle such matters[40]. - The company has a policy of rotating directors at least every three years, in accordance with its articles of association[41]. - The company has arranged appropriate liability insurance to indemnify directors and management against legal claims, with no claims reported during the year[46]. - The Audit Committee consists of three independent non-executive directors and met twice in 2023 to ensure the accuracy of the company's financial statements[51]. - The company has adopted a shareholder communication policy, utilizing various channels including annual general meetings and the company website to maintain effective communication with shareholders[64]. Market Conditions and Strategic Outlook - The company recognizes the challenges in the economic recovery path but believes in its ability to tap into the potential of the entire home furnishing industry in China, developing more effective and flexible business models[29]. - The government has proposed to address real estate risks and maintain economic stability, which is expected to stimulate the recovery of the home furnishing industry and related sectors[28]. - The company adopted a more cautious expansion strategy due to slow recovery in consumer demand and a weak real estate market in China[84]. - The company is focused on diversifying its business to enhance overall competitiveness and maximize shareholder value[29]. - The company will continue to integrate dealer management, tailoring strategies to regional characteristics to enhance resource sharing and improve sales network efficiency and profitability[29]. Shareholder Information - The company will not declare a final dividend for the year ended December 31, 2023, compared to a final dividend of HKD 0.01 per share in 2022[16]. - The board may declare dividends in the future based on the group's operating, profit, financial condition, cash needs, and other relevant factors, with the amount subject to shareholder approval[69]. - The company has a commitment to ensuring compliance with the Cayman Islands company law and its own articles of association regarding dividend payments[69]. - The company’s future dividend declarations may not reflect past practices and will be at the board's discretion[69]. Risk Management - The company has established a comprehensive risk management system, continuously monitoring and assessing risks based on past annual evaluations[62]. - The internal audit department conducts regular independent checks to identify any violations and risks, reporting major findings to management[62]. - The company has implemented measures to prevent non-compliance incidents, including legal consultations and enhanced internal communication policies[63]. - The company has identified various financial and operational risks, particularly related to the performance of the Chinese furniture market[92]. Human Resources - The group employed 1,358 people as of December 31, 2023, a decrease from 1,490 in 2022[122]. - The compensation for senior management (excluding directors) ranged from zero to RMB 2.5 million, with a total of four individuals falling within specified salary ranges[123]. - The company has not set measurable targets for implementing its diversity policy within the board and employee team[59]. - The board consists of 8 male directors and 1 female director, with a gender ratio of approximately 3:2 among employees[59]. Financial Reporting and Compliance - The consolidated financial statements for the year ended December 31, 2023, were audited by Ernst & Young, who will retire at the upcoming annual general meeting[137]. - The company has complied with the disclosure requirements under Chapter 14A of the Listing Rules regarding related party transactions[133]. - The company has adopted new and revised Hong Kong Financial Reporting Standards for the fiscal year ending December 31, 2023, with no significant impact on the financial statements[177]. - The company will recognize any changes in the fair value of contingent consideration at the acquisition date in the profit and loss statement[183].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 827,916 thousand, a decrease of 43.3% compared to RMB 1,461,037 thousand in 2022[2] - Gross profit for the year was RMB 26,117 thousand, down 87.6% from RMB 210,812 thousand in the previous year[2] - The company reported a loss for the year of RMB 385,971 thousand, compared to a profit of RMB 10,640 thousand in 2022[2] - The group reported a pre-tax loss from continuing operations of RMB 419,118,000, compared to a loss of RMB 96,334,000 in the previous year[21] - The group reported a loss of RMB 386.0 million for the year, a significant decline of 3,727.5% compared to a profit of RMB 10.6 million in 2022, attributed to decreased gross margin and increased operating expenses[43] - The group reported a pre-tax loss of RMB 186,991,000 in 2023, compared to a loss of RMB 203,719,000 in 2022, reflecting an improvement of approximately 8.2%[29] Assets and Liabilities - Total assets less current liabilities as of December 31, 2023, were RMB 3,048,914 thousand, down from RMB 3,584,510 thousand in 2022[6] - Non-current assets, including property, plant, and equipment, totaled RMB 797,143 thousand, a decrease from RMB 824,154 thousand in the previous year[5] - The company’s total liabilities increased to RMB 2,256,885 thousand from RMB 1,832,442 thousand in 2022, reflecting a significant rise in current liabilities[5] - Current liabilities exceeded current assets by approximately RMB 96 million as of December 31, 2023[10] - Total assets as of December 31, 2023, amounted to RMB 5,305,799,000, while total liabilities were RMB 3,519,275,000[21] Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 29,270 thousand from RMB 356,829 thousand in the previous year[5] - Cash and cash equivalents amounted to RMB 29 million at the end of the reporting period[10] - As of December 31, 2023, the group's cash and cash equivalents amounted to RMB 29.3 million, a decrease from RMB 356.8 million in 2022[50] - The current ratio as of December 31, 2023, decreased to 0.96 from 1.16 in 2022, with net current liabilities of RMB 96.1 million compared to net current assets of RMB 284.0 million in 2022[50] Financing and Debt - The company’s financing costs rose to RMB 144,670 thousand from RMB 119,795 thousand in 2022, indicating increased borrowing costs[2] - The total amount of interest-bearing bank and other borrowings as of December 31, 2023, was RMB 2,389.9 million, an increase from RMB 2,250.4 million in 2022[50] - The debt-to-asset ratio as of December 31, 2023, was 66%, up from 56% in 2022[51] - The group aims to reduce debt expenses by converting high-interest short-term debt into lower-interest long-term debt[53] Operational Performance - The company is implementing measures to improve operational performance and accelerate the collection of receivables[11] - The group aims to capture market demand by developing a comprehensive range of home furnishing products and optimizing its offline distribution network, resulting in a 1.7% increase in sales points to 1,942[45] - The group is actively collaborating with strategic shareholder Science City Group to expand its furniture engineering project sales, alleviating some of the declines in distributor sales[46] Segment Performance - The furniture manufacturing segment generated revenue of RMB 782,825,000, while the hotel business contributed RMB 12,838,000, and the trading segment accounted for RMB 32,253,000[21] - The group’s total revenue from hotel operations decreased from RMB 36,442,000 in 2022 to RMB 12,838,000 in 2023, indicating a significant decline in this segment[25] - The furniture manufacturing segment's performance showed a gross profit of RMB 57,857,000, while the hotel business reported a loss of RMB 32,847,000[21] Shareholder and Governance - The board has resolved not to declare a final dividend for the year ended December 31, 2023[70] - The company has complied with the corporate governance code except for certain deviations regarding the roles of the chairman and CEO[64] - The audit committee consists of three independent non-executive directors and has reviewed the consolidated financial statements for the year ended December 31, 2023[68] Future Outlook - The group recognizes the challenges in the economic recovery path but believes in its ability to tap into the potential of the Chinese home furnishing industry[53] - The company is committed to continuous investment in the development project, aiming to secure future returns and enhance its market position[58] Employee and Training - The group employed approximately 1,358 employees as of December 31, 2023, and offers competitive compensation packages along with performance-based stock rewards[61] - The company is focused on improving employee skills and professional knowledge through training programs, enhancing overall workforce capability[61]

Financial Performance - For the six months ended June 30, 2023, the group's revenue decreased by 19.3% to approximately HKD 573.4 million, while the gross profit margin increased from 17.2% to 19.8%[8] - The group recorded a loss attributable to equity holders of HKD 82.6 million for the period, compared to a loss of HKD 73.8 million in the same period last year[8] - The gross profit for the same period was HKD 113,718,000, down from HKD 122,158,000, reflecting a decline of 6.0%[47] - The company incurred a loss of HKD 85,384,000 for the six months ended June 30, 2023, compared to a loss of HKD 79,267,000 in the prior year, representing an increase in loss of 7.1%[48] - The total comprehensive loss for the six months ended June 30, 2023, was HKD 184,248,000, compared to a loss of HKD 206,060,000 for the same period in 2022, representing a decrease of approximately 10.5%[49] - The total comprehensive loss attributable to owners of the parent was HKD 175,273,000 for the six months ended June 30, 2023, compared to HKD 194,079,000 for the same period in 2022, indicating an improvement of about 9.7%[49] Assets and Liabilities - As of June 30, 2023, the group's net current assets were HKD 125.3 million, down from HKD 326.8 million as of December 31, 2022[10] - The company's total liabilities decreased to HKD 3,426,043,000 as of June 30, 2023, from HKD 3,707,718,000 as of December 31, 2022, representing a reduction of about 7.6%[51] - The company's equity attributable to owners of the parent decreased to HKD 2,074,855,000 as of June 30, 2023, from HKD 2,281,474,000 as of December 31, 2022, reflecting a decline of approximately 9.1%[51] - The company's interest-bearing bank and other borrowings amounted to HKD 2,315.1 million as of June 30, 2023, down from HKD 2,547.0 million as of December 31, 2022[22] - The debt-to-equity ratio was 59% as of June 30, 2023, an increase from 56% as of December 31, 2022[23] Cash Flow and Liquidity - The group had cash and cash equivalents of approximately HKD 320 million and restricted cash of about HKD 230 million as of mid-August 2023, indicating sufficient liquidity to support operations[10] - The company's cash and cash equivalents decreased to HKD 15,267,000 at the end of the reporting period, down from HKD 127,147,000 at the end of June 30, 2022, indicating a significant reduction in liquidity[53] - The net cash outflow from operating activities was HKD 101,140,000 for the six months ended June 30, 2023, compared to HKD 86,628,000 for the same period in 2022, indicating a decline in cash flow from operations[53] - The company reported a net cash outflow from financing activities of HKD 175,403,000 for the six months ended June 30, 2023, compared to a cash inflow of HKD 55,048,000 in the same period of 2022, highlighting a significant change in financing strategy[53] Business Strategy and Operations - The group plans to optimize its business operations and expand its furniture product sales network, focusing on the younger generation market[11] - The group aims to enhance project cooperation with commercial clients to expand its engineering project business scope[12] - The group will implement a centralized procurement system to better manage and optimize manufacturing costs in the second half of the year[12] - The group is committed to leveraging its established brand and prudent management model to seize market opportunities and enhance overall strength[12] Shareholder Information - The company has a total of 1,945,391,280 shares, representing 74.86% of the issued share capital, held by a group of concert parties including Mr. Xie Jinpeng[19] - Mr. Xie directly beneficially owns 282,948,047 shares, equivalent to 10.89% of the issued share capital[15] - The performance share award plan has a total of 129,928,066 shares authorized for grant, representing 5% of the issued shares[21] - During the reporting period, 2,842,000 shares were purchased under the performance share award plan[21] Employee and Management Information - The total number of employees as of June 30, 2023, was approximately 1,459, a decrease from 1,490 as of December 31, 2022[34] - The total remuneration for key management personnel was 5,994 thousand HKD for the six months ended June 30, 2023, down from 6,290 thousand HKD in the same period of 2022[84] - The chairman and CEO roles are held by the same individual, which the company believes provides strong leadership and effective decision-making[35] Future Outlook and Commitments - The company has a commitment of up to RMB 1.532 billion related to a joint venture for a land acquisition in Guangzhou, with a maximum shareholder loan amount of RMB 732 million[41] - The group has provided guarantees totaling HKD 346,080,000 (equivalent to RMB 320,000,000) during the period[32] - There are no significant future investment or capital asset plans disclosed as of June 30, 2023[28] Market and Segment Performance - The furniture products segment reported a profit before tax of HKD 23,535,000, while the property investment and development segment incurred a loss of HKD 76,155,000 for the same period[61] - The group’s total sales to external customers for the six months ended June 30, 2023, were HKD 573,424,000, with significant contributions from the furniture products and trading segments[61] - The group recorded a total loss before tax from continuing operations of HKD 85,384,000 for the six months ended June 30, 2023[60] - There were no sales to a single customer that accounted for 10% or more of the group's revenue during the reporting period[64]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 573,424,000, a decrease of 19.4% compared to HKD 710,995,000 for the same period in 2022[2] - Gross profit for the same period was HKD 113,718,000, down 6.0% from HKD 122,158,000 in 2022[2] - The company reported a loss of HKD 85,384,000 for the six months ended June 30, 2023, compared to a loss of HKD 79,267,000 in the prior year, representing a 7.7% increase in loss[2][3] - Basic loss per share for the period was HKD 3.324, compared to HKD 2.966 in the same period last year, indicating a 12.0% increase in loss per share[2] - The segment performance showed a loss of HKD 70,706,000 for the total operations, compared to a loss of HKD 59,453,000 in the previous year, indicating a worsening performance[14] - The company reported a loss attributable to equity holders of HKD 82,603,000 for the six months ended June 30, 2023, compared to a loss of HKD 73,781,000 in the same period of 2022[19] - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to a special dividend of HKD 0.04 per share in the previous year[21] Assets and Liabilities - Total assets less current liabilities as of June 30, 2023, were HKD 3,740,326,000, down from HKD 4,059,969,000 as of December 31, 2022[5] - Non-current liabilities, including interest-bearing bank and other borrowings, amounted to HKD 1,058,507,000 as of June 30, 2023, compared to HKD 1,303,360,000 at the end of 2022[5] - The company's total equity decreased to HKD 2,205,216,000 as of June 30, 2023, from HKD 2,420,810,000 at the end of 2022, reflecting a decline of 8.9%[6] - Cash and cash equivalents as of June 30, 2023, were HKD 15,267,000, down from HKD 403,863,000 at the end of 2022, indicating a significant liquidity reduction[4] - As of June 30, 2023, the group's net current assets were HKD 125.3 million, a decrease from HKD 326.8 million as of December 31, 2022[32] - The current ratio (current assets/current liabilities) was 1.07 as of June 30, 2023, down from 1.16 as of December 31, 2022[35] Revenue and Income - The company reported a decrease in other income and gains to HKD 27,859,000 from HKD 41,770,000 in the previous year, a decline of 33.4%[2] - Total revenue from external customers for the six months ended June 30, 2023, was HKD 573,424,000, a decrease from HKD 710,995,000 in the same period of 2022, representing a decline of approximately 19.4%[14] - Revenue decreased by 19.3% to approximately HKD 573.4 million, while gross margin increased from 17.2% to 19.8%[30] Operational Strategy - The company plans to focus on market expansion and new product development to improve future performance[1] - The company plans to relaunch a hotel in Guangdong with a new brand image to capture the recovering domestic tourism market[30] - The group aims to optimize its business operations and expand its sales network for furniture products, accelerating store expansion and enhancing operational efficiency[33] - The group plans to strengthen its internal systems and optimize manufacturing costs in response to favorable government policies, focusing on enhancing asset returns[33] - The group will actively pursue commercial customer project collaborations to expand its business scope in engineering projects[33] Accounting and Compliance - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which will impact the accounting policy disclosures in the annual consolidated financial statements[9] - The group has applied the amendments to HKAS 12 regarding deferred tax assets and liabilities related to leases, effective from January 1, 2022, with no cumulative impact on retained earnings[10] - The group has not reported any significant changes in its financial position or performance due to the adoption of the new accounting standards[10] - The group has not disclosed any significant tax risks related to the second pillar income tax as it does not fall under the scope of the new regulations[11] - The company has maintained compliance with the corporate governance code, with no significant deviations reported[37] Employee and Management - The total number of employees as of June 30, 2023, was approximately 1,459, a slight decrease from 1,490 as of December 31, 2022[36] - The group has established a performance share award plan to incentivize eligible employees, although no shares were granted under this plan as of June 30, 2023[36] - The company has appointed Mr. Yang Jun as both Chairman and Chief Executive Officer, effective June 9, 2023, to provide strong and stable leadership[44] Miscellaneous - The group has confirmed deferred tax assets related to all deductible temporary differences associated with lease liabilities as of January 1, 2022[10] - The group’s management monitors the performance of each operating segment to make resource allocation decisions[12] - The group has not engaged in any purchase, sale, or redemption of its securities during the period ending June 30, 2023[41] - The company has proposed amendments to its Articles of Association to establish a dual chairman structure, which was approved at the special general meeting on June 9, 2023[43] - The company will publish its interim report, including the condensed consolidated financial statements, on its website and the stock exchange's website[45]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 ROYALE HOME HOLDINGS LIMITED 皇朝家居控股有限公司* （於開曼群島註冊成立之有限公司） （股份代號：1198） 有關截至二零二二年十二月三十一日止年度之 年報的補充公告 茲 提 述 皇 朝 家 居 控 股 有 限 公 司（「本公司」）於 二 零 二 三 年 四 月 二 十 七 日 刊 發 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 年 報（「年 報」）。除 文 義 另 有 所 指 外，本 公 告 所 用 詞 彙 與 年 報 所 界 定 者 具 有 相 同 涵 義。 除 年 報 所 載 資 料 外，董 事 會 謹 此 向 本 公 司 股 東 及 潛 在 投 資 者 提 供 以 下 補 充 資 料。 業績股票獎勵計劃 接納價 經選定人士於接納根據業績股票獎勵計劃授予的獎勵股份時無須支付任何價 格。 ...

Financial Performance - For the year ended December 31, 2022, the company recorded a sales revenue of HKD 1,702.9 million, representing an increase of 11.6% year-on-year[14]. - The gross profit margin decreased from 20.8% to 14.4% compared to the previous year[14]. - The net profit attributable to the owners of the parent company was HKD 5.586 million, a significant decline from HKD 76.897 million in the previous year[14]. - Profit for the year was HKD 12.4 million, a decrease of 86.0% from HKD 88.3 million in 2021, with profit attributable to equity holders of the parent down 92.7% to HKD 5.6 million[23]. - Revenue for the year 2022 was HKD 1,702,936 thousand, an increase of 11.5% from HKD 1,526,506 thousand in 2021[198]. - Gross profit decreased to HKD 245,716 thousand from HKD 318,226 thousand, reflecting a decline of 22.7%[198]. - The net profit for the year was HKD 12,403 thousand, down from HKD 88,300 thousand, representing a decrease of 86.0%[200]. - Basic earnings per share for the parent company shareholders dropped to HKD 0.225 from HKD 2.999, a decline of 92.5%[198]. Operational Developments - The number of retail points for the company's distributors increased by 10.2% year-on-year to 1,909 sales points[14]. - The company plans to further enhance its brand influence and expand its sales network for customized furniture and sofas in response to market changes[16]. - The company has successfully entered the list of designated furniture suppliers for Huawei Group and is competing for multiple furniture projects worth billions[16]. - A joint venture project with Kong Lung China Real Estate Group in Guangzhou has begun pre-sales, offering interior design and full-house furniture solutions[16]. - The group anticipates significant improvement in 2023 due to the recovery of the real estate market and the expansion of the consumer market, particularly in the home furnishing sector[39]. - The hotel operated by the group in Guangdong has signed a management cooperation agreement with Junlan Hotel brand and is undergoing property upgrades, expected to re-enter the market in 2023[39]. Financial Stability and Dividends - The board proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2022, consistent with the previous year's final dividend[20]. - The company aims to maintain financial stability and sufficient cash flow while consistently distributing dividends to shareholders[21]. - The board may declare dividends based on the company's operating, financial condition, and other relevant factors, with future dividends not necessarily reflecting past declarations[97]. - The company reported a final dividend of HKD 0.01 per share for the fiscal year, consistent with the previous year's final dividend of HKD 0.01 and a special dividend of HKD 0.04 per share[113]. Governance and Board Structure - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors as of December 31, 2022[47]. - The Chairman and CEO roles are held separately by Mr. Xie Jinpeng and Mr. Yang Jun, ensuring clear division of responsibilities[48]. - Independent non-executive director Mr. Liu Zhijie was reappointed for a fixed term of three years on June 6, 2022[55]. - The board has established formal procedures for decision-making and is responsible for overseeing management's identification of opportunities and risks[57]. - The company ensures that all directors receive timely and relevant information to facilitate effective decision-making[50]. - The board meets at least four times a year, with additional meetings as necessary, ensuring active engagement from all members[50]. Audit and Compliance - The audit committee, composed of three independent non-executive directors, met twice in 2022 to ensure the accuracy of the company's financial statements[69]. - The audit committee reviewed the effectiveness of the internal control system, covering financial, operational, and compliance monitoring, and confirmed its adequacy[72]. - The consolidated financial statements for the year ended December 31, 2022, were audited by Ernst & Young, reflecting a true and fair view of the group's financial position[180]. - The company maintains high standards of corporate governance as outlined in its corporate governance report[173]. Shareholder Relations - The company has adopted a shareholder communication policy, utilizing various channels including annual general meetings and the company website to ensure effective communication with shareholders[89]. - Shareholders have the right to request the convening of a special general meeting if they hold at least 10% of the voting rights[93]. - The company encourages inquiries from shareholders and investors through designated contact methods, including email and phone[99]. Market and Strategic Outlook - The company is expanding its market presence in Southeast Asia, targeting a 20% increase in sales in that region over the next year[106]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and is expected to generate $10 million in cost savings annually[105]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 25% over the next five years[106]. Employee and Compensation Policies - The group employed 1,490 people as of December 31, 2022, an increase from 1,328 employees in the previous year[161]. - The group’s compensation policy aims to reflect competitive levels to retain high-performing employees, with sufficient flexibility to adapt to future changes in the business environment[76]. - The total amount of shareholder loans and guarantees provided to the joint venture amounted to HKD 1,117.8 million (approximately RMB 987.6 million)[164].