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） 截至二零二二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 二 年 十 二 月 三 十 一 日 止 年 度 之 綜 合 業 績 連 同 截 至 二 零 二 一 年 十 二 月 三 十 一 日 止 年 度 之 比 較 數 字。截 至 二 零 二 二 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 截至二零二二年十二月三十一日止年度 二零二二 ...

Revenue and Profitability - Revenue increased by 60.7% to approximately HKD 711 million for the six months ended June 30, 2022, driven by an expanded dealer network and increased product sales [4]. - For the six months ended June 30, 2022, the company reported revenue of HKD 710.995 million, a 60.9% increase from HKD 442.479 million in the same period of 2021 [43]. - The gross profit for the same period was HKD 122.158 million, compared to HKD 67.087 million in 2021, reflecting a significant improvement in profitability [43]. - The group reported revenue from continuing operations of HKD 710,995,000 for the six months ended June 30, 2022, compared to HKD 442,479,000 for the same period in 2021, representing a 60.7% increase [70]. - The group’s other income and gains totaled HKD 41,770,000 for the six months ended June 30, 2022, compared to HKD 21,484,000 for the same period in 2021, indicating a 94.5% increase [70]. Losses and Financial Position - The group recorded a loss attributable to equity holders of HKD 73.8 million, an improvement from a loss of HKD 83.3 million in the same period last year [6]. - The company incurred a loss of HKD 79.267 million for the six months ended June 30, 2022, compared to a loss of HKD 87.292 million in the prior year, indicating a reduction in losses [44]. - The company reported a total comprehensive loss of HKD 206.060 million for the six months ended June 30, 2022, compared to a loss of HKD 61.933 million in the prior year [46]. - The company reported a loss attributable to ordinary shareholders of HKD 73,781,000 for the six months ended June 30, 2022, compared to a loss of HKD 83,279,000 for the same period in 2021, representing a decrease of approximately 6% in losses year-over-year [78]. Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 6,113.2 million, with net assets valued at HKD 2,216.933 million [41]. - The company's total liabilities were HKD 3,896.265 million, resulting in a net asset value of HKD 2,216.933 million [41]. - The company’s current liabilities totaled HKD 2,508.801 million, while non-current liabilities were HKD 705.464 million [41]. - As of June 30, 2022, cash and cash equivalents decreased by HKD 12,800,000, compared to an increase of HKD 646,787,000 in the same period last year [53]. - The company’s liabilities as of June 30, 2022, were HKD 1,081,099,000, reflecting a decrease from previous reporting periods [54]. Cash Flow - For the six months ended June 30, 2022, the net cash flow from operating activities was a negative HKD 86,628,000, compared to a positive HKD 555,013,000 for the same period in 2021 [53]. - The net cash flow from investing activities was HKD 18,780,000, an improvement from a negative HKD 721,773,000 in the previous year [53]. - The net cash flow from financing activities was HKD 55,048,000, down from HKD 813,547,000 in the prior year [53]. Inventory and Receivables - Inventory increased by 4.2% to HKD 264.7 million, while prepayments, deposits, and other receivables rose by 6.1% to HKD 501.2 million [6]. - Trade receivables as of June 30, 2022, amounted to HKD 231,654,000, an increase from HKD 187,062,000 as of December 31, 2021, reflecting a growth of approximately 23.7% [81]. Shareholder Information - The total number of shares available for performance stock awards was 110,740,000, representing approximately 4.26% of the issued shares as of June 30, 2022 [21]. - The company’s major shareholder, Science City Group, holds 1,945,391,280 shares, representing 74.86% of the issued share capital [16]. - The company’s major shareholders include Mr. Xie, who directly holds 282,948,047 shares, equivalent to 10.89% of the issued share capital [15]. Strategic Initiatives - The company plans to continue expanding its product lines into building materials and smart home solutions, aiming to create a comprehensive home supply chain [9]. - Strategic partnerships with large renovation design companies are being established to cater to the "move-in ready" residential market [9]. - The company is focusing on optimizing the operational efficiency of its dealer network to enhance brand influence and market share [8]. Social Responsibility - The company is committed to social responsibility, having donated 24,000 high-quality mattresses to support the construction of a temporary hospital in Hong Kong [4]. Financing and Borrowings - The company's interest-bearing bank and other borrowings amounted to HKD 2,585.9 million, an increase from HKD 2,341.1 million as of December 31, 2021 [22]. - The debt-to-equity ratio was 56% as of June 30, 2022, up from 51% as of December 31, 2021 [23]. Employee Information - The total number of employees increased to approximately 1,748 as of June 30, 2022, compared to 1,328 as of December 31, 2021, reflecting a growth of 31.6% [34].

Financial Performance - The company recorded a revenue increase of 5.8% year-on-year to HKD 1.5265 billion, with a gross profit margin rising from 11.0% to 20.8%[11]. - The net profit attributable to shareholders was HKD 76.897 million, a turnaround from a loss of HKD 18.38 million in the previous year[11]. - Profit for the year decreased by 87.5% to HKD 88.3 million, with profit attributable to shareholders down 89.2% to HKD 76.9 million due to prior year land recovery tax benefits[18]. - The overall gross profit margin improved from 11.0% in 2020 to 20.8% in 2021, with the furniture business gross margin rising from 17.6% to 37.9%[18]. - The company reported a net profit of HKD 88,300,000 for the year, a decrease of 87.48% from HKD 706,138,000 in 2020[143]. - The total comprehensive income for the year amounted to HKD 195.391 million, with a profit of HKD 76.897 million[147]. - The company’s financial position as of December 31, 2021, is detailed in the audited financial statements[84]. Dividends - The board proposed a final dividend of HKD 0.01 per share and a special dividend of HKD 0.04 per share, compared to HKD 0.04 and HKD 0.06 per share in the previous year[11][15]. - The company reported a final dividend of HKD 0.01 per share and a special dividend of HKD 0.04 per share for the fiscal year, compared to HKD 0.04 and HKD 0.06 per share in the previous year respectively[84]. - The board may declare dividends based on the group's operating, profit, financial condition, cash needs, and other relevant factors, with future dividends not necessarily reflecting past declarations[73]. Business Strategy and Growth - The company plans to strengthen support for distributors and enhance promotional efforts to capture growth in the mainland furniture market[12]. - Strategic partnerships with well-known home furnishing mall operators have been established to improve brand exposure[12]. - The company successfully launched an e-commerce business in home textiles, which is expected to continue growing[13]. - Future plans include expanding the product range to include more renovation materials and home decor items[12]. - The company aims to build a comprehensive supply chain for a one-stop home furnishing brand supply platform[12]. - The company is collaborating with renovation design companies to acquire more potential home customer resources at the source stage of home decoration[30]. - The company is developing a commercial and residential project in Guangzhou with its joint venture partner, Honglong China Real Estate Group[30]. Financial Position and Liabilities - Cash and cash equivalents as of December 31, 2021, were HKD 146.5 million, down from HKD 236.9 million in 2020[24]. - The debt-to-equity ratio increased to 51% as of December 31, 2021, compared to 24% in 2020[25]. - The company reported financing costs of HKD 123,532,000, a significant increase from HKD 31,121,000 in 2020, reflecting higher interest expenses[142]. - Non-current liabilities rose significantly to HKD 1,629,651,000 from HKD 665,729,000 in the previous year, reflecting increased borrowing[146]. - The company’s total borrowings increased to HKD 2,777,621 thousand in 2021 from HKD 237,494 thousand in 2020[151]. Governance and Management - The board of directors held a total of four regular meetings during the year, with all members attending at least 14 out of 14 meetings[39]. - The chairman and CEO roles are held separately by Mr. Xie Jin Peng and Mr. Yang Jun, respectively, with clearly defined responsibilities[37]. - The company ensures that all directors participate in ongoing professional development to maintain their knowledge and skills relevant to their roles[46]. - The company has established formal procedures for board decision-making and has delegated specific powers to its committees[43]. - The company has received annual confirmations of independence from its independent non-executive directors, affirming their independence[41]. Risk Management - The company has established a risk management framework to identify and manage risks effectively, with regular independent checks conducted by the internal audit department[66]. - The business is highly dependent on the performance of the Chinese furniture market, which poses a risk to its financial condition[96]. - The company has identified various financial risks, which are detailed in the financial statements[96]. Compliance and Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with all amounts adjusted to the nearest thousand[159]. - The group has implemented measures to ensure compliance with new accounting standards, which do not result in significant gains or losses from the changes[161]. - The company is committed to transparent communication with shareholders through annual reports, interim reports, and other disclosures, ensuring timely information dissemination[67]. Shareholder Information - Major customers accounted for approximately 43% of total sales, with the largest customer contributing 41% of that figure[91]. - The company’s distributable reserves as of December 31, 2021, were HKD 1,170,151,000[90]. - The public float of the company was approximately 25.02% after the sale of 66,000,000 shares by Mr. Xie and 64,600,000 shares by Science City Hong Kong in January 2021[112]. Investments and Acquisitions - The company has agreed to inject a total of RMB 300 million into Science City Financing Leasing, with a cash injection of RMB 100 million from its wholly-owned subsidiary, including RMB 90 million proportionate to its shareholding and RMB 10 million as a waiver[27]. - The company’s investment in Guangzhou Port Science Property Co., Ltd. has a book value of HKD 936,018,000, significantly up from HKD 366,048,000 in 2020, reflecting a strong growth in real estate investments[28]. - The group has subsidiaries with significant contributions to the overall performance, including Jiangxi Furun Furniture Co., Ltd. with an investment of $15 million and Tianjin Huangchao Furniture Co., Ltd. with an investment of RMB 150 million[156]. Inventory and Assets - Inventory decreased by 4.4% to approximately HKD 254.1 million, reflecting strict control over finished goods inventory levels[22]. - The total inventory amounted to approximately HKD 315 million, with an inventory provision balance of about HKD 61 million[134]. - The carrying value of investment properties was HKD 590 million as of December 31, 2021, with a recognized fair value gain of HKD 89.5 million during the year[135]. Audit and Internal Controls - The audit committee, composed of three independent non-executive directors, met twice during the year to review the financial performance and ensure the accuracy of financial statements[53]. - The audit committee reviewed the effectiveness of the internal control systems, covering financial, operational, and compliance monitoring[53]. - The group’s independent auditor, Ernst & Young, has issued an unqualified opinion on the financial statements for the year ended December 31, 2021[131].