[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Regal Home Holdings Limited announced its unaudited interim results for the six months ended June 30, 2025, reporting a 44.2% year-on-year revenue decrease but a 67.1% reduction in loss for the period, primarily due to a one-off provision in the prior year, with no interim dividend recommended | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 41.9 | 75.1 | -44.2% | | Gross Profit | 11.2 | 20.3 | -44.8% | | Loss for the Period | (30.4) | (92.3) | -67.1% | | Basic Loss Per Share | (0.97 cents) | (3.45 cents) | -71.9% | | Interim Dividend | Nil | Nil | - | [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the company's unaudited condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing revenue, cost of sales, gross profit, various expenses, finance costs, and loss for the period, with comparative figures Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 41,915 | 75,092 | | Cost of Sales | (30,719) | (54,831) | | Gross Profit | 11,196 | 20,261 | | Other Income and Gains | 436 | 106 | | Provision for Expected Credit Losses on Financial Assets, Net | (217) | (61,111) | | Selling and Distribution Expenses | (8,399) | (20,977) | | Administrative Expenses | (22,050) | (22,328) | | Other Expenses and Losses | (346) | (233) | | Finance Costs | (10,973) | (8,029) | | Loss Before Tax | (30,353) | (92,311) | | Income Tax | – | – | | Loss for the Period | (30,353) | (92,311) | | Exchange Differences on Translation of Financial Statements | 324 | 716 | | Total Comprehensive Loss for the Period | (30,029) | (91,595) | Loss and Total Comprehensive Loss Attributable to Owners of the Company (RMB thousand) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (28,886) | (92,311) | | Loss Attributable to Non-controlling Interests | (1,467) | – | | **Total** | **(30,353)** | **(92,311)** | | Total Comprehensive Loss Attributable to Owners of the Company | (28,571) | (91,595) | | Total Comprehensive Loss Attributable to Non-controlling Interests | (1,458) | – | | **Total** | **(30,029)** | **(91,595)** | Loss Per Share (RMB cents) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic Loss Per Share | (0.97) | (3.45) | | Diluted Loss Per Share | (0.97) | (3.45) | [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the company's unaudited condensed consolidated statement of financial position as of June 30, 2025, including key financial data such as non-current assets, current assets, current liabilities, non-current liabilities, and deficiency in equity, with comparative figures as of December 31, 2024 Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,872 | 1,601 | | Right-of-use Assets | 19,776 | 22,789 | | **Total Non-current Assets** | **21,648** | **24,390** | | **Current Assets** | | | | Inventories | 14,961 | 19,031 | | Trade Receivables | 9,916 | 16,734 | | Prepayments, Deposits and Other Receivables | 9,385 | 12,970 | | Amounts Due from Related Companies | 119,542 | 120,040 | | Pledged Bank Deposits | 21 | 21 | | Restricted Bank Balances | 119 | 165 | | Cash and Cash Equivalents | 4,778 | 3,999 | | **Total Current Assets** | **158,722** | **172,960** | | **Current Liabilities** | | | | Trade Payables | 30,797 | 28,872 | | Contract Liabilities | 2,487 | 3,356 | | Other Payables and Accrued Expenses | 53,915 | 40,179 | | Amounts Due to Related Companies | 45,093 | 45,281 | | Shareholder Loans | 108,497 | 118,675 | | Interest-bearing Bank and Other Borrowings | 68,252 | 78,242 | | Warranty Provisions | 60 | 459 | | Lease Liabilities | 8,384 | 11,406 | | Convertible Loans | 29,608 | 29,833 | | Income Tax Payable | 2,888 | 2,932 | | **Total Current Liabilities** | **349,981** | **359,235** | | **Net Current Liabilities** | **(191,259)** | **(186,275)** | | **Total Assets Less Current Liabilities** | **(169,611)** | **(161,885)** | | **Non-current Liabilities** | | | | Lease Liabilities | 15,209 | 19,143 | | Interest-bearing Bank and Other Borrowings | 53,696 | 53,696 | | **Total Non-current Liabilities** | **68,905** | **72,839** | | **Net Liabilities** | **(238,516)** | **(234,724)** | | **Deficiency in Equity** | | | | Share Capital | 23,156 | 19,212 | | Reserves | (259,290) | (253,006) | | Deficiency in Equity Attributable to Owners of the Company | (236,134) | (233,794) | | Non-controlling Interests | (2,382) | (930) | | **Total Deficiency in Equity** | **(238,516)** | **(234,724)** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering the basis of preparation, changes in accounting policies, segment and geographical information, major customers, revenue breakdown, loss before tax details, income tax, loss per share, dividends, trade receivables/payables, and share capital, offering deeper context and details for financial statement understanding [1. Basis of Preparation and Going Concern](index=6&type=section&id=1.%20Basis%20of%20Preparation%20and%20Going%20Concern) This interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, consistent with the accounting policies used in the 2024 annual financial statements, despite significant going concern uncertainties addressed by management's plans for financial support, external financing, and cost control - The Group incurred a **loss attributable to owners of the Company of approximately RMB 28,886,000** for the six months ended June 30, 2025, and as of June 30, 2025, had **net current liabilities of approximately RMB 191,259,000** and **net liabilities of approximately RMB 238,516,000**, raising significant doubt about its ability to continue as a going concern[11](index=11&type=chunk)[66](index=66&type=chunk) - The controlling shareholder, Mr. Tse Kam Pang, has provided an unsecured loan facility of up to **HK$200,000,000**, with approximately **HK$61,424,000** unutilized as of June 30, 2025, and has committed not to demand repayment of his loan of approximately **RMB 108,497,000** within the next twelve months[11](index=11&type=chunk)[66](index=66&type=chunk) - Management plans to secure external funding, enhance cost control, and accelerate the collection of trade and other receivables to improve working capital, liquidity, and cash flow[16](index=16&type=chunk)[68](index=68&type=chunk) - Despite the Board's belief that the going concern assumption is appropriate, significant uncertainties related to the Group's ability to continue as a going concern remain due to the uncertain outcome of these plans and measures[13](index=13&type=chunk)[69](index=69&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=7&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The revised HKFRS accounting standards effective January 1, 2025, adopted during this interim period, have no significant impact on the Group's financial position, performance, or disclosures - The accounting policies adopted for the preparation of the unaudited interim results are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of revised HKFRS accounting standards effective January 1, 2025[14](index=14&type=chunk) - The application of HKAS 21 (Amendment) “Lack of Exchangeability” has no significant impact on the Group’s financial position and performance and/or disclosures in these unaudited condensed consolidated financial statements for the current and prior periods[15](index=15&type=chunk) [3. Segment Information](index=8&type=section&id=3.%20Segment%20Information) The Group's operating segments are retail and manufacturing, with the manufacturing segment contributing most external revenue but both segments recording losses, reflecting its dominant position in segment assets and liabilities Segment Revenue and Loss (RMB thousand) | Indicator | Retail Segment (2025) | Retail Segment (2024) | Manufacturing Segment (2025) | Manufacturing Segment (2024) | Total (2025) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Sales Revenue | 4,166 | 22,205 | 37,749 | 52,887 | 41,915 | 75,092 | | Segment Loss | (7,767) | (5,805) | (16,112) | (81,828) | (23,879) | (87,633) | Segment Assets and Liabilities (RMB thousand) | Indicator | Retail Segment (June 30, 2025) | Retail Segment (December 31, 2024) | Manufacturing Segment (June 30, 2025) | Manufacturing Segment (December 31, 2024) | Consolidated (June 30, 2025) | Consolidated (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Segment Assets | 13,573 | 22,365 | 129,566 | 137,777 | 143,139 | 160,142 | | Segment Liabilities | 35,980 | 38,433 | 316,031 | 326,376 | 352,011 | 364,809 | - All assets and liabilities are allocated to operating segments, except for certain right-of-use assets, prepayments, deposits and other receivables, amounts due from related companies, cash and cash equivalents, other payables and accrued expenses, amounts due to related companies, shareholder loans, lease liabilities, and convertible loans[23](index=23&type=chunk) [Geographical Information](index=10&type=section&id=Geographical%20Information) The Group's revenue primarily originates from Europe, the United States, China (including Hong Kong), and other regions, with significant declines in China and the US, while non-current assets are mainly located in China, the US, and Cambodia Revenue from External Customers (RMB thousand) | Region | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | People's Republic of China (including Hong Kong) | 7,867 | 25,022 | | Europe | 13,349 | 15,305 | | United States of America | 6,361 | 25,353 | | Other | 14,338 | 9,412 | | **Total** | **41,915** | **75,092** | Non-current Assets (RMB thousand) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | China (including Hong Kong) | 5,517 | 2,289 | | United States | 11,830 | 17,900 | | Cambodia | 4,301 | 4,201 | | **Total** | **21,648** | **24,390** | [Information on Major Customers](index=10&type=section&id=Information%20on%20Major%20Customers) During the reporting period, two major customers (Customer 1 and Customer 3) accounted for over 10% of the Group's revenue, all belonging to the manufacturing segment, contrasting with Customer 2 in the prior period Major Customer Revenue (RMB thousand) | Customer | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Customer 1 | 10,232 | Not Applicable* | | Customer 2 | Not Applicable* | 15,764 | | Customer 3 | 13,215 | Not Applicable* | * Revenue below 10% of the Group's total revenue. - All major customers belong to the manufacturing segment[28](index=28&type=chunk) [4. Revenue, Other Income and Gains](index=11&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) The Group's revenue, primarily from manufacturing and selling sofas, sofa covers, and other furniture products, decreased year-on-year, while other income and gains, including interest, government grants, and exchange gains, increased Analysis of Revenue, Other Income and Gains, Net (RMB thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | | | | Manufacturing and sales of sofas, sofa covers and other furniture products | 41,915 | 75,092 | | **Other Income and Gains** | | | | Interest income | 6 | 4 | | Government grants | 29 | 13 | | Exchange gains | 208 | – | | Others | 193 | 89 | | **Subtotal** | **436** | **106** | [5. Loss Before Tax](index=11&type=section&id=5.%20Loss%20Before%20Tax) This section details the key expenses and gains contributing to the loss before tax, including cost of inventories sold, depreciation, salaries, retirement plan contributions, share-based payment expenses, inventory provisions, expected credit loss provisions, warranty provisions, convertible loan interest, lease liability interest, and exchange losses Items Deducted From/(Credited To) Loss Before Tax (RMB thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 30,719 | 54,510 | | Depreciation of property, plant and equipment | 504 | 2,361 | | Depreciation of right-of-use assets | 2,929 | 10,966 | | Salaries, wages and benefits in kind | 13,847 | 22,510 | | Contributions to retirement benefit schemes | 2,032 | 2,076 | | Equity-settled share-based payment expenses | 555 | 337 | | Provision for obsolete and slow-moving inventories | 3,263 | 321 | | Provision for expected credit losses on financial assets measured at amortised cost, net | 217 | 61,111 | | Reversal of provision for product warranties, net | (399) | (613) | | Interest on convertible loans | 1,645 | 1,267 | | Interest on lease liabilities | 1,044 | 1,494 | | Exchange losses | – | 277 | [6. Income Tax](index=12&type=section&id=6.%20Income%20Tax) The Group is exempt from income tax in the Cayman Islands and BVI, with Hong Kong applying a two-tiered profits tax and Chinese subsidiaries a 25% corporate income tax, but no tax provision was made due to the absence of taxable profits - The Group is **not subject to any income tax** in the Cayman Islands and the British Virgin Islands[33](index=33&type=chunk) - Hong Kong operates a two-tiered profits tax rate regime, where the first **HK$2,000,000 of assessable profits** for qualifying entities is taxed at **8.25%**, and the remainder at **16.5%**[33](index=33&type=chunk) - During the period, the PRC subsidiaries are subject to PRC Enterprise Income Tax at a rate of **25%**[33](index=33&type=chunk) - No tax provision was made for the six months ended June 30, 2025, and 2024, as no taxable profits were generated[35](index=35&type=chunk) [7. Loss Per Share Attributable to Owners of the Company](index=12&type=section&id=7.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic and diluted loss per share attributable to owners of the Company are calculated based on the loss for the period and the weighted average number of ordinary shares, both at RMB 0.97 cents, showing an improvement from the prior period Loss Per Share Calculation Data (RMB thousand/thousand shares) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company for the purpose of calculating basic and diluted loss per share | (28,886) | (92,311) | | Weighted average number of ordinary shares for the purpose of calculating basic and diluted loss per share (after deducting treasury shares) | 2,990,210 | 2,674,188 | - The diluted loss per share for the periods ended June 30, 2025, and 2024, is **the same as the basic loss per share**[37](index=37&type=chunk) [8. Dividends](index=13&type=section&id=8.%20Dividends) No interim dividend was paid, declared, or recommended for the six months ended June 30, 2025, consistent with the prior corresponding period - No interim dividend was paid, declared, or recommended for the six months ended June 30, 2025 (2024: Nil)[38](index=38&type=chunk) [9. Trade Receivables](index=13&type=section&id=9.%20Trade%20Receivables) The Group's trade receivables, primarily from third parties, decreased to RMB 9,916 thousand net at period-end, with credit terms generally one to two months, extendable for major customers, and no collateral held Trade Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (from third parties) | 47,082 | 53,890 | | Less: Provision for expected credit losses | (37,166) | (37,156) | | **Net** | **9,916** | **16,734** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 5,505 | 9,857 | | 4 to 6 months | 3,327 | 5,023 | | 7 to 12 months | 1,084 | 1,854 | | **Total** | **9,916** | **16,734** | - The Group's trade accounts with customers are primarily on credit, with credit periods generally ranging from **one to two months**, extendable to a maximum of **three to six months** for major customers, and trade receivables are non-interest bearing[39](index=39&type=chunk) [10. Trade Payables](index=13&type=section&id=10.%20Trade%20Payables) The Group's trade payables, primarily to third parties, slightly increased to RMB 30,797 thousand at period-end, typically settled within 30 to 180 days, and are non-interest bearing Trade Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables to third parties | 30,797 | 28,872 | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 3,234 | 8,686 | | 2 to 3 months | 6,370 | 3,006 | | 4 to 6 months | 4,935 | 737 | | Over 6 months | 16,258 | 16,443 | | **Total** | **30,797** | **28,872** | - Trade payables are non-interest bearing and are normally settled within **30 to 180 days**[41](index=41&type=chunk) [11. Share Capital](index=14&type=section&id=11.%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital comprised 3,300,000,000 ordinary shares of USD 0.001 each, equivalent to RMB 23,156 thousand, an increase from the end of 2024 Share Capital (USD thousand/RMB thousand) | Item | June 30, 2025 (USD thousand) | June 30, 2025 (RMB thousand) | December 31, 2024 (USD thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Authorised share capital (10,000,000,000 ordinary shares of USD 0.001 each) | 10,000 | - | 10,000 | - | | Issued and fully paid share capital (3,300,000,000 ordinary shares of USD 0.001 each) | 3,300 | 23,156 | 2,750 | 19,212 | [12. Comparative Figures](index=14&type=section&id=12.%20Comparative%20Figures) Certain comparative figures have been reclassified to conform to the current year's presentation - Certain comparative figures have been reclassified to conform to the current year's presentation[43](index=43&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's detailed discussion and analysis of the company's performance, financial position, and future outlook, highlighting revenue decline due to complex global consumer sentiment and macroeconomic challenges, but a significant narrowing of net loss through strategic adjustments and cost control, alongside progress in going concern efforts, human resources, share schemes, future prospects, and corporate governance [Business Review](index=15&type=section&id=Business%20Review) During the reporting period, complex global consumer sentiment, tariff uncertainties, inflation, and economic ambiguity led to a 44.2% year-on-year decline in orders and total revenue, prompting the Group to adopt flexible production strategies, expand beyond China, shift to online sales, and optimize supply chain and cost management - The consumer sentiment in major markets (Europe, China, and the United States) remained volatile, impacted by tariff uncertainties and inflationary pressures, leading to an **overall decrease in demand**[44](index=44&type=chunk) - The Group's total revenue decreased by **44.2% to approximately RMB 41.9 million**, while net loss decreased by **67.1% to approximately RMB 30.4 million**[45](index=45&type=chunk) - To address challenges, the Group expanded its production footprint beyond China (new Southeast Asian factories), shifted from traditional offline retail to online sales platforms, optimized its supply chain, logistics, and cost structure, and strengthened cost control and operational efficiency[46](index=46&type=chunk) [Business Development in Europe, the United States, and Other Potential Markets](index=16&type=section&id=Business%20Development%20in%20Europe%2C%20the%20United%20States%20and%20Other%20Potential%20Markets) Europe remains the largest market, contributing 31.8% of total revenue despite cautious ordering, while the US market share declined to 15.2% due to tariff concerns, prompting the Group to diversify production and expand into other regions like Mexico, Canada, Australia, and Dubai, which saw a 52.3% year-on-year revenue increase to 34.2% of total - Europe remains the **largest market**, contributing **31.8% of total revenue**, though customers remain cautious in placing orders[47](index=47&type=chunk) - The US market contributed **15.2% of total revenue** (33.8% in the same period of 2024), affected by reciprocal tariff policies, leading to some order backlogs[48](index=48&type=chunk) - Other regions (Mexico, Canada, Australia, and Dubai) contributed **34.2% of total revenue**, representing a **52.3% year-on-year increase**[49](index=49&type=chunk) - The Group established a team in the first half of 2025 dedicated to developing online business and participating in renowned export online platforms[49](index=49&type=chunk) [Retail Business Development in China and Hong Kong](index=16&type=section&id=Retail%20Business%20Development%20in%20China%20and%20Hong%20Kong) The Group strategically reallocated resources by terminating all retail operations in China and Hong Kong in June 2025 to fully focus on an export-oriented business model, aiming to enhance operational efficiency and capitalize on international market opportunities - The Group terminated all its retail businesses in China and Hong Kong in June 2025, shifting its focus entirely to an **export-oriented business model**[50](index=50&type=chunk) - This strategic move aims to **enhance operational efficiency** and seize international market opportunities[50](index=50&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) During the reporting period, the Group's revenue decreased by 44.2% to RMB 41.9 million due to macroeconomic factors, with a slight gross margin decline to 26.7%, but net loss significantly reduced by 67.1% to RMB 30.4 million, primarily due to the absence of a prior-year one-off provision for related company receivables, while selling and distribution expenses decreased and finance costs increased Key Financial Indicators Change (RMB million) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 41.9 | 75.1 | -44.2% | | Gross Profit | 11.2 | 20.3 | -44.8% | | Gross Profit Margin | 26.7% | 27.0% | -0.3pp | | Net Loss | (30.4) | (92.3) | -67.1% | | Cost of Sales | 30.7 | 54.8 | -44.0% | | Other Income and Gains | 0.4 | 0.1 | +300% | | Selling and Distribution Expenses | 8.4 | 21.0 | -60.0% | | Administrative Expenses | 22.1 | 22.3 | -0.9% | | Finance Costs | 11.0 | 8.0 | +37.5% | - The reduction in net loss is primarily due to a **one-off provision of approximately RMB 60.6 million** made by the Group for amounts due from related companies for the six months ended June 30, 2024, which did not recur in the current period[52](index=52&type=chunk)[53](index=53&type=chunk) - The significant decrease in selling and distribution expenses is mainly attributable to the **scaling down of the Hong Kong retail segment**, including reduced depreciation of right-of-use assets related to retail stores, and lower sales representative salaries and delivery costs due to store closures[58](index=58&type=chunk) - The increase in finance costs is primarily due to **higher interest on bank and other borrowings and shareholder loans** for the six months ended June 30, 2025[60](index=60&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group had high interest-bearing bank and other borrowings and shareholder loans, resulting in a net liability position and an inapplicable gearing ratio, with no significant contingent liabilities and ongoing monitoring of foreign exchange risk for potential hedging Borrowing Status (RMB million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interest-bearing bank and other borrowings | 121.9 | 131.9 | | Shareholder loans | 108.5 | 118.7 | - The annual interest rates for borrowings range from **5.0% to 8.0%**[61](index=61&type=chunk) - The Group has fallen into a **net liability position**, rendering the gearing ratio inapplicable[63](index=63&type=chunk) - The Group has **no significant contingent liabilities**[64](index=64&type=chunk) - The Group faces foreign exchange risk from fluctuations in the USD against the RMB and will continue to monitor this closely, implementing hedging arrangements when appropriate[65](index=65&type=chunk) [Going Concern](index=20&type=section&id=Going%20Concern) The Group faces significant going concern uncertainties due to its loss for the period and net liability position, but management has implemented plans including financial support from the controlling shareholder, external financing, and enhanced cost control and receivables collection, which the Board deems appropriate for the going concern basis, despite remaining uncertainties regarding their ultimate success - The Group incurred a **loss attributable to owners of the Company of approximately RMB 28,886,000** for the six months ended June 30, 2025, and as of June 30, 2025, had **net current liabilities of approximately RMB 191,259,000** and **net liabilities of approximately RMB 238,516,000**, raising significant doubt about its ability to continue as a going concern[66](index=66&type=chunk) - The controlling shareholder, Mr. Tse Kam Pang, has provided an unsecured loan facility of up to **HK$200,000,000**, with approximately **HK$61,424,000** unutilized as of June 30, 2025, and has committed not to demand repayment of his loan of approximately **RMB 108,497,000** within the next twelve months[66](index=66&type=chunk) - Management plans to secure external funding, enhance cost control, and accelerate the collection of trade and other receivables to improve working capital, liquidity, and cash flow[68](index=68&type=chunk) - Despite the Board's belief that the going concern assumption is appropriate, significant uncertainties related to the Group's ability to continue as a going concern remain due to the uncertain outcome of these plans and measures[69](index=69&type=chunk)[71](index=71&type=chunk) [Human Resources Management](index=21&type=section&id=Human%20Resources%20Management) The Group values its employees as indispensable assets, offering continuous development through regular training and corporate culture education, providing competitive compensation and benefits, and regularly reviewing human resources and remuneration policies, employing 270 staff with total salary and related costs of approximately RMB 15.9 million for the period - The Group provides continuous training and career development opportunities to its employees through regular comprehensive training and corporate culture education[70](index=70&type=chunk) - As of June 30, 2025, the Group employed **270 staff** (December 31, 2024: 220 staff)[70](index=70&type=chunk) - Total salaries and related costs (excluding directors' emoluments) for the six months ended June 30, 2025, amounted to approximately **RMB 15.9 million** (same period in 2024: approximately RMB 24.6 million)[70](index=70&type=chunk) [Share Schemes](index=22&type=section&id=Share%20Schemes) The Company operates a share option scheme and a restricted share award scheme to incentivize employees, with no options granted or exercised during the period, and the trustee of the restricted share award scheme holding 75,812,000 shares as treasury shares, representing 2.30% of issued shares [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on December 10, 2016, to incentivize eligible individuals, with no options granted or outstanding under the scheme from its adoption date through June 30, 2025 - The Company adopted a share option scheme on **December 10, 2016**, to grant options to eligible persons as an incentive or reward for their contributions[72](index=72&type=chunk) - No share options were granted by the Company under the share option scheme from its adoption date up to and including June 30, 2025, and there were **no outstanding share options** under the scheme as of January 1, 2025, and June 30, 2025[73](index=73&type=chunk) [Restricted Share Award Scheme](index=22&type=section&id=Restricted%20Share%20Award%20Scheme) The Company adopted a restricted share award scheme on August 29, 2019, for employee retention and incentive, with the trustee not acquiring any shares in the first half of 2025 and holding 75,812,000 shares as treasury shares, representing 2.30% of issued shares, as of June 30, 2025 - The Company adopted a restricted share award scheme on **August 29, 2019**, as an incentive to retain and motivate employees[74](index=74&type=chunk) - The trustee of the share award scheme **did not acquire any shares** during the first half of 2025[74](index=74&type=chunk) - As of June 30, 2025, **75,812,000 shares** acquired and held by the trustee under the share award scheme were treated as treasury shares, representing **2.30% of the issued shares**[74](index=74&type=chunk) [Outlook and Prospects](index=22&type=section&id=Outlook%20and%20Prospects) For the second half of 2025, the Group anticipates continued uncertainty in the furniture market and plans to implement a multi-channel sales strategy, integrating online and offline platforms, enhancing online visibility, and actively participating in B2B e-commerce platforms, with new management focused on optimizing cost control, maintaining robust cash flow, and strengthening R&D for sustainable growth - The furniture market is expected to face **continued uncertainty and significant challenges** in the second half of 2025[75](index=75&type=chunk) - The Group will leverage a **strong multi-channel sales strategy**, integrating online and offline platforms, enhancing online visibility, and has registered as an online exhibitor on B2B e-commerce platforms[75](index=75&type=chunk) - The core of the company's strategy is driven by a dynamic new management team committed to **optimizing cost control, maintaining robust cash flow, and strengthening R&D capabilities** to achieve sustainable growth[76](index=76&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section discloses that during the reporting period, the Company and its subsidiaries neither purchased, redeemed, nor sold any listed securities, nor made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures, held any significant investments, or had any board-authorized plans for major investments or capital asset increases - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[77](index=77&type=chunk) - For the six months ended June 30, 2025, the Group made **no significant acquisitions or disposals** of any subsidiaries, associates, or joint ventures[78](index=78&type=chunk) - As of June 30, 2025, the Group held **no significant investments** other than those disclosed in this announcement[79](index=79&type=chunk) - As of the date of this announcement, the Board has **not authorized any plans for significant investments** or additions to capital assets[80](index=80&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules, and all current directors have confirmed full compliance during the reporting period - The Company has adopted the **Standard Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules[81](index=81&type=chunk) - All current directors have confirmed their **full compliance** with the required standards for directors' securities transactions as set out in the Standard Code during the reporting period[81](index=81&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The Company is committed to maintaining high corporate governance standards to protect shareholder interests, with the Board reviewing practices and confirming compliance with all code provisions and recommended best practices of the Corporate Governance Code, except for management not providing monthly updates to the Board - The Company is committed to maintaining **high standards of corporate governance** to safeguard the interests of its shareholders and enhance corporate value and accountability[82](index=82&type=chunk) - The Board has reviewed the Company's corporate governance practices and is satisfied that, save for management not providing monthly updates to the Board, the Company has complied with **all code provisions and recommended best practices** of the Corporate Governance Code during the reporting period and up to the date of this announcement[82](index=82&type=chunk)[83](index=83&type=chunk) [Audit Committee and Review of Unaudited Interim Results](index=24&type=section&id=Audit%20Committee%20and%20Review%20of%20Unaudited%20Interim%20Results) The Company's Audit Committee, comprising four independent non-executive directors, has reviewed the Group's unaudited interim results and report for the six months ended June 30, 2025, with management, deeming them compliant with applicable accounting standards, Listing Rules, and legal requirements, and adequately disclosed - The Audit Committee comprises **four independent non-executive directors**, with at least one member possessing recognized professional accounting qualifications and/or extensive experience in auditing and accounting[84](index=84&type=chunk) - The Audit Committee, together with the Company's management, has reviewed the Group's unaudited interim results and interim report for the six months ended June 30, 2025, and is satisfied that they comply with applicable accounting standards, the Listing Rules, and legal requirements, and that **adequate disclosures have been made**[84](index=84&type=chunk) [Interim Dividend](index=24&type=section&id=Interim%20Dividend) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board has resolved **not to declare any interim dividend** for the six months ended June 30, 2025 (June 30, 2024: Nil)[85](index=85&type=chunk) [Events After Reporting Period](index=25&type=section&id=Events%20After%20Reporting%20Period) No significant events have occurred after the reporting period up to the date of this announcement - No significant events have occurred after the reporting period up to the date of this announcement[86](index=86&type=chunk) [Publication of Unaudited Interim Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20Unaudited%20Interim%20Results%20Announcement%20and%20Interim%20Report) This unaudited interim results announcement has been published on the HKEXnews website and the Company's website, with the unaudited interim report for the reporting period to be dispatched to shareholders and published on these websites by September 30, 2025 - This unaudited interim results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.theregalpartners.com)[87](index=87&type=chunk) - The Company's unaudited interim report for the reporting period will be dispatched to the Company's shareholders and published on the aforementioned websites on or before **September 30, 2025**[87](index=87&type=chunk) [Acknowledgement](index=25&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the management team and staff for their contributions and dedication, and thanks shareholders and business partners for their strong support of the Group - The Board extends its sincere gratitude to the management team and staff for their contributions and dedication, and thanks shareholders and business partners for their strong support of the Group[88](index=88&type=chunk) [Board of Directors](index=25&type=section&id=Board%20of%20Directors) As of the announcement date, the executive directors include Mr. Chuang Tsz Yee (Chairman), Mr. Tse Woon Cheung, Mr. Tse Hok Kan, and Mr. Chan Wing Kit, while the independent non-executive directors are Professor Sit Wing Hung, Professor Lee Chack Fan, Professor Kwan Pun Fong, and Ms. Chan Kin Wah - The executive directors are Mr. Chuang Tsz Yee (Chairman), Mr. Tse Woon Cheung, Mr. Tse Hok Kan, and Mr. Chan Wing Kit[89](index=89&type=chunk) - The independent non-executive directors are Professor Sit Wing Hung, Professor Lee Chack Fan, Professor Kwan Pun Fong, and Ms. Chan Kin Wah[89](index=89&type=chunk)

Group 1 - The company, Aifenda (301575.SZ), plans to issue 21.67 million shares in its initial public offering (IPO), with an initial strategic placement of 4.334 million shares [1] - The preliminary inquiry date is set for August 26, 2025, and the subscription date is September 1, 2025 [1] - Aifenda is a high-tech enterprise specializing in the research, design, production, and sales of HVAC home products, including bathroom towel racks and HVAC components such as temperature control valves and magnetic filters [1] Group 2 - The company's net profit attributable to the parent company is projected to be 93.11 million yuan, 164 million yuan, and 118 million yuan for the fiscal years 2022, 2023, and 2024, respectively [1] - The funds raised from the IPO, after deducting issuance costs, are planned to be invested in the technological upgrade project for an annual production capacity of 1.3 million towel racks, the construction of an automated production line for 1 million towel racks, and to supplement working capital [1] - The expected investment from the raised funds is 666 million yuan [1]

Core Viewpoint - The company, Huangting Zhijia (01575.HK), anticipates a significant reduction in net loss for the six months ending June 30, 2025, compared to the previous period ending June 30, 2024 [1] Financial Performance - The expected net loss attributable to the owners of the company for the six months ending June 30, 2025, is approximately RMB 33.6 million, a decrease from the net loss of approximately RMB 92.3 million for the six months ending June 30, 2024 [1] - The reduction in loss is primarily attributed to a one-time provision of approximately RMB 60.6 million made for receivables from related companies during the six months ending June 30, 2024, which will not recur in the subsequent period [1]

Core Viewpoint - The company expects a significant reduction in net loss attributable to shareholders for the six months ending June 30, 2025, compared to the same period in 2024, primarily due to a one-time provision related to receivables from connected companies [1] Financial Performance - The anticipated net loss attributable to shareholders for the six months ending June 30, 2025, is approximately RMB 33.6 million, a decrease from approximately RMB 92.3 million for the same period in 2024 [1] - The reduction in loss is mainly attributed to a one-time provision of approximately RMB 60.6 million made for receivables from connected companies during the six months ending June 30, 2024 [1]

Core Viewpoint - The company, Huangting Zhijia (01575), anticipates a significant reduction in net loss attributable to shareholders for the six months ending June 30, 2025, projecting a loss of approximately RMB 33.6 million, compared to a loss of about RMB 92.3 million for the same period ending June 30, 2024 [1] Financial Summary - The expected reduction in loss is primarily due to a one-time provision of approximately RMB 60.6 million made for receivables from related companies during the six months ending June 30, 2024, which will not recur in the relevant period [1]

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的內容概不 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倚賴該等內容而引致的任何損失承擔任何責 任。 REGAL PARTNERS HOLDINGS LIMITED 由 於 本 公 司 仍 在 落 實 本 集 團 於 相 關 期 間 的 未 經 審 核 綜 合 中 期 業 績，本 公 告 所 載資料僅基於董事會目前所得資料及董事會對本集團相關期間的未經審核管 理 賬 目 的 初 步 審 閱 而 得 出，有 關 賬 目 未 經 本 公 司 獨 立 核 數 師 及╱或 董 事 會 的 審 核 委 員 會 審 閱 或 審 核。本 集 團 於 相 關 期 間 的 實 際 財 務 業 績 可 能 有 別 於 本 公 告 所 披 露 的 資 料。股 東 及 有 意 投 資 者 務 請 細 閱 本 公 司 有 關 本 集 團 相 關 期 間 的 中 期 業 績 公 告，預 期 公 告 會 根 據 上 市 規 則 的 規 定 在2025年8月29日 刊 發。 – ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 第 1 頁 共 10 頁 v 1.1.1 FF301 致：香港交易及結算所有限公司 公司名稱: 皇庭智家控股有限公司（於開曼群島註冊成立的有限公司） 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01575 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | | 0.001 USD | | | 10,000,000 | | 增加 / 減少 (-) | | | | | | USD | | | | | 本月底結存 | | | 10,000, ...

Group 1 - The core viewpoint of the news highlights the recent performance of the Hang Seng Index and the significant increase in the stock price of Huangting Zhijia, despite its substantial decline over the past month and year [1][2]. Group 2 - As of May 8, the Hang Seng Index rose by 0.37%, closing at 22,775.92 points [1]. - Huangting Zhijia's stock price closed at 0.059 HKD per share, marking a 31.11% increase with a trading volume of 572.2 million shares and a turnover of 31.18 million HKD, while experiencing a volatility of 37.78% [1]. - Over the past month, Huangting Zhijia has seen a cumulative decline of 42.31% and a year-to-date decline of 26.23%, underperforming the Hang Seng Index by 13.12% [2]. - Financial data indicates that for the year ending December 31, 2024, Huangting Zhijia achieved total revenue of 120 million HKD, a year-on-year decrease of 36.42%, and a net profit attributable to shareholders of -87.656 million HKD, a decrease of 254.48% [2]. - The company's gross profit margin stands at 23.3%, with a debt-to-asset ratio of 218.94% [2]. - Currently, there are no institutional investment ratings for Huangting Zhijia [3]. - The average price-to-earnings (P/E) ratio for the household appliances and goods industry is 13.18 times, with a median of 3.94 times, while Huangting Zhijia's P/E ratio is -1.57 times, ranking 75th in the industry [3]. - Other companies in the industry have P/E ratios such as Lian Nian International at 1.55 times, Kaifushan Group Holdings at 1.61 times, Huaxun at 3.07 times, Shengnuo Group at 3.87 times, and Kuangshi Fragrance at 4.02 times [3]. - Huangting Zhijia Holdings Limited is a Hong Kong-listed company (stock code: 01575) that integrates design, production, sales, and marketing business models [3].

Financial Performance - Revenue decreased by approximately 36.4% to approximately RMB119.5 million in 2024 compared to RMB188.0 million in 2023[14] - Gross profit for the Group was approximately RMB27.9 million in 2024, down from approximately RMB69.5 million in 2023[14] - The Group's loss for the year increased by approximately 239.5% to approximately RMB88.6 million in 2024, compared to RMB26.1 million in 2023[14] - Basic loss per share was approximately RMB3.28 cents in 2024, compared to RMB0.92 cents in 2023[14] - The Group's total revenue decreased by 36.4% year-on-year to approximately RMB 119.5 million, primarily due to weakening disposable incomes in European and American households amid persistent inflation[79] - The Group's net loss amounted to approximately RMB 88.6 million, compared to a net loss of approximately RMB 26.1 million in 2023[79] - Gross profit decreased to approximately RMB27.9 million in 2024, down approximately 60.0% from RMB69.5 million in 2023, with the gross profit margin declining from 37.0% to 23.3%[99] - The Group's basic and diluted loss per ordinary share was approximately RMB3.28 cents for 2024, compared to RMB0.92 cents in 2023[97] Strategic Initiatives - The Company adopted a dual production base strategy to mitigate operational risks, with production in both domestic and overseas locations[17] - Construction of the new production facility in Southeast Asia was completed, and trial production commenced in the second half of 2024[17] - The newly established overseas factory received positive customer feedback, evidenced by an increase in orders, including from new customers[17] - The company plans to phase out retail operations of its in-house sofa brand to reduce marketing expenses while focusing on export OEM business[21] - The Group established a joint venture with a local renowned furniture brand in the U.S. to enhance market exposure and leverage their sales capabilities[84] - The Group's strategic focus on product quality and innovative designs has helped to consolidate existing customer bases and penetrate new markets despite challenging economic conditions[86] - The Group's strategic adjustments aimed to bolster competitiveness and capture additional market share amid significant market challenges[82] Market Conditions - The Company faced significant economic challenges in major markets, particularly in the U.S., Europe, and China, due to high home prices and elevated mortgage rates[16] - The global household market is projected to reach USD 1,087.5 billion by 2032, with significant demand for personalized home decor products in the United States[25] - Southeast Asia has seen a continuous uptrend in furniture exports throughout 2024, supported by government policies aimed at fostering the furniture industry[20] - The consumer price index in China hit a decade-low, while the GDP growth rate reached 5%, aligning with the national target, indicating a challenging economic backdrop[78] - Challenges in the U.S. economy include budget deficits, public debt, and labor market issues, which have adversely impacted the Group's business due to changing trade policies with China[180] - The Group has assessed the business risks arising from changes in U.S.-China trade policies and is exploring various means to mitigate these risks[181] Corporate Governance - The Company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[183] - The Board of Directors is responsible for overseeing management and financial performance, holding regular meetings to discuss business operations[189] - The composition of the Board includes both executive and independent non-executive Directors, with specific roles and responsibilities outlined[194] - The board of directors consists of 3 executive directors, 2 non-executive directors, and 4 independent non-executive directors[196] - Independent non-executive directors represent more than one-third of the board, ensuring adequate control and balance for shareholder interests[200] - The independent non-executive directors provide independent and objective opinions to protect the overall interests of shareholders[199] Financial Management - The company has implemented prudent financial management practices, refraining from acquiring additional bank loans to maintain a robust financial position[26] - The Group's liquidity policy ensures sufficient cash reserves and committed funding lines to meet short and long-term liquidity requirements[168][172] - The Group's interest rate risk is monitored continuously, adjusting bank deposits and borrowings as necessary[176] - The Group's credit risk is primarily from trade receivables, with the five largest customers accounting for approximately 60.2% of total trade receivables as of December 31, 2024[174][175] Management and Leadership - The company is led by Chairman Tse Kam Pang, who holds approximately 74.86% of the issued share capital[40] - CEO Chong Tsz Ngai has over ten years of experience in corporate finance and was appointed as an executive director on October 17, 2022[41][47] - Zou Gebing, who served as chairman and CEO from 2016 to 2022, resigned on January 8, 2024[43][48] - The management team includes individuals with extensive backgrounds in international trade and corporate finance, enhancing strategic decision-making[42][47] Operational Challenges - The Group incurred a loss attributable to owners of the Company of approximately RMB 87,656,000 for the year ended 31 December 2024[134] - As of 31 December 2024, the Group had net current liabilities of approximately RMB 186,275,000 and net liabilities of approximately RMB 234,724,000[134] - The auditors were unable to obtain sufficient appropriate audit evidence regarding the balances with Zou Entities as at 31 December 2024 and 2023[139] - The management acknowledges the qualified opinion issued by the auditors due to the uncooperative attitude of the Zou Entities[145] - The company is exploring various solutions to recover amounts due from ZOU Entities, facing substantial difficulties due to the financial condition of ZOU Entities and suspected debt evasion[153] Employee and Operational Metrics - As of December 31, 2024, the Group employed 220 employees, a decrease from 338 employees as of December 31, 2023[161][163] - The total annual salary and related costs for 2024 were approximately RMB 37.8 million, down from RMB 53.8 million in 2023[161][163]

Group 1 - The Hang Seng Index closed down 1.91% at 21,056.98 points on April 16 [1] - Huangting Smart Home (01575.HK) closed at HKD 0.044 per share, up 29.41%, with a trading volume of 7.79 million shares and a turnover of HKD 301,100, showing a volatility of 29.41% [1] - Over the past month, Huangting Smart Home has seen a cumulative decline of 67.62%, and a year-to-date decline of 44.26%, underperforming the Hang Seng Index by 7.01% [1] Group 2 - For the fiscal year ending December 31, 2024, Huangting Smart Home reported total revenue of HKD 120 million, a year-on-year decrease of 36.42%, and a net profit attributable to shareholders of -HKD 87.656 million, a year-on-year decrease of 254.48% [1] - The gross profit margin stands at 23.3%, with a debt-to-asset ratio of 218.94% [1] - Currently, there are no institutional investment ratings for Huangting Smart Home [2] Group 3 - The average price-to-earnings (P/E) ratio for the household appliances and goods industry is 12.51 times, with a median of 3.94 times [2] - Huangting Smart Home has a P/E ratio of -1.19 times, ranking 81st in the industry [2] - Other companies in the industry include Lian International (09918.HK) with a P/E of 1.48 times, Kaifushan Group Holdings (08512.HK) at 1.63 times, and Huaxun (00833.HK) at 3.07 times [2]