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]

Financial Performance - Revenue for the year ending December 31, 2024, decreased by approximately 36.4% to about RMB 119.5 million, compared to RMB 188.0 million in 2023[5] - Basic loss per share for 2024 is approximately RMB 3.28, compared to a basic loss per share of approximately RMB 0.92 in 2023[5] Announcement Clarification - The announcement clarifies that all other information in both the Chinese and English versions remains unchanged[6]

Financial Performance - Revenue for the year ended December 31, 2024, increased by approximately 36.4% to RMB 119.5 million compared to RMB 88.0 million in 2023[4] - Gross profit for 2024 was approximately RMB 27.9 million, down from RMB 69.5 million in 2023[4] - The net loss for 2024 increased by approximately 239.5% to RMB 88.6 million, compared to RMB 26.1 million in 2023[4] - Basic loss per share for 2024 was approximately RMB 3.28, compared to RMB 0.92 in 2023[6] - The group reported a pre-tax loss of RMB 88,643 thousand in 2024, compared to a pre-tax loss of RMB 26,130 thousand in 2023[25] - The company's loss before tax for 2024 was approximately RMB 87,656,000, compared to RMB 24,728,000 in 2023, indicating a significant increase in losses[49] - The net loss for the group was approximately RMB 88.6 million, compared to RMB 26.1 million in 2023[63] - The company's total revenue for 2024 was approximately RMB 119.5 million, a decrease of about 36.4% compared to RMB 188.0 million in 2023[70] Dividends and Shareholder Returns - The board of directors did not recommend any final dividend for the year ended December 31, 2024, consistent with 2023[4] - The board of directors did not recommend any dividend for the year ended December 31, 2024, consistent with the previous year[50] - No final dividend is recommended for the year ending December 31, 2024, consistent with the previous year[115] Assets and Liabilities - Total assets decreased from RMB 240.9 million in 2023 to RMB 172.96 million in 2024[7] - Current liabilities decreased from RMB 365.5 million in 2023 to RMB 359.2 million in 2024[7] - As of December 31, 2024, the company's total non-current liabilities amounted to RMB 72,839,000, an increase from RMB 71,054,000 in the previous year[8] - The company's net debt stood at RMB 234,724,000 as of December 31, 2024, compared to RMB 152,531,000 in the previous year, indicating a significant increase in leverage[8] - The company's total equity deficit was RMB 234,724,000, reflecting a deterioration from RMB 152,531,000 in the previous year[8] - The total current liabilities increased from RMB 351,969,000 to RMB 365,456,000 after reclassification adjustments[20] - The net current liabilities increased from RMB (111,024,000) to RMB (124,511,000) after adjustments[20] - The total non-current liabilities decreased from RMB 84,541,000 to RMB 71,054,000 following the reclassification[20] Cash Flow and Financing - The company plans to secure external funding to improve its working capital and cash flow situation[14] - The major shareholder has committed to providing up to HKD 200,000,000 in unsecured loans to support the company's operations[14] - The company completed a placement of 550,000,000 shares at HKD 0.051 per share, raising approximately HKD 27,801,000 net of expenses[14] - The group successfully obtained additional external financing to improve cash flow[19] - The group has initiated a restructuring plan to address financial difficulties, with 20% of the total outstanding loans already paid to China Merchants Bank[55] Operational Performance - The company reported a significant increase in selling and distribution expenses, totaling RMB 32.98 million in 2024 compared to RMB 48.74 million in 2023[5] - The cost of goods sold decreased to RMB 91,166,000 in 2024 from RMB 146,132,000 in 2023, reflecting a reduction of approximately 37.7%[7] - Sales and distribution expenses decreased by approximately 32.2% to RMB 33.0 million from RMB 48.7 million in 2023, reflecting the closure of certain subsidiaries in the US and UK[77] - Administrative expenses were reduced by approximately 29.4% to RMB 45.8 million from RMB 64.9 million in 2023, primarily due to the closure of subsidiaries in the US and UK[78] - The group strengthened cost control and accelerated the collection of trade and other receivables, generating positive operating cash flow[19] Market and Revenue Breakdown - Retail segment revenue decreased to RMB 36,144 thousand in 2024 from RMB 58,644 thousand in 2023, a decline of 38%[25] - Production segment revenue decreased to RMB 83,363 thousand in 2024 from RMB 129,331 thousand in 2023, a decline of 36%[25] - Total revenue for the group fell to RMB 119,507 thousand in 2024, down 36% from RMB 187,975 thousand in 2023[25] - Revenue from customers in the People's Republic of China (including Hong Kong) was RMB 42,311 thousand in 2024, down 36% from RMB 65,947 thousand in 2023[32] - Revenue from the United States decreased to RMB 28,209 thousand in 2024 from RMB 60,471 thousand in 2023, a decline of 53%[32] - Revenue from the production and sale of sofas and other furniture products for 2024 was RMB 119,507,000, a decrease of 36.5% compared to RMB 187,967,000 in 2023[36] Legal and Governance - Legal advice is being sought by the group regarding claims and is preparing to vigorously defend against them[59] - The group has recognized a provision of RMB 3 million for claims related to a civil lawsuit[58] - The audit committee agrees with management's view regarding the auditors' qualified opinion due to insufficient evidence related to the Zhao entity[100] - The company is committed to resolving audit issues and has been cooperating with auditors to obtain necessary evidence[101] - The company has established a share option plan to reward eligible individuals for their contributions to the group, adopted on December 10, 2016[106] Employee and Corporate Governance - The company has a total of 220 employees as of December 31, 2024, down from 338 employees as of December 31, 2023[105] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[119] - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[111] - The company will continue to review its corporate governance practices to meet the growing expectations of shareholders and investors[112] Future Outlook and Strategy - The company plans to operate under a light asset model to reduce operational pressure and risks while expanding into existing markets, including the US, Europe, and mainland China[107] - The company is considering legal actions and other recovery measures to retrieve amounts owed by the Zhao entity[101] - The group is actively expanding its manufacturing presence in Southeast Asia, with new factories expected to start production in the second half of the year[64] - The group has developed innovative sofa products designed for efficient space utilization and transportation, addressing rising logistics costs[65] - The group has committed to sustainability by launching stylish sofas made from eco-friendly leather materials[65]

Incentive Plan - The fair value of share awards granted under the incentive plan for the year ended December 31, 2023, is RMB 3,070,000, with individual share prices of HKD 0.13 and HKD 0.12 for awards granted on October 2, 2023, and August 2, 2023, respectively [2]. - The company recognized an expense of RMB 498,000 related to the incentive plan for the year ended December 31, 2023 [2]. - The purchase price for share awards granted under the incentive plan was set at HKD 0.18 per share, considering the closing prices of HKD 0.182 and HKD 0.175 on August 1, 2023, and September 29, 2023, respectively [1]. - The incentive plan aims to reward employees based on their contributions and potential long-term growth for the company [2]. Board of Directors - The company’s board of directors includes executive directors Mr. Xie Jinpeng and Mr. Zhuang Ziyi, and independent non-executive directors such as Professor Xue Yongheng and Professor Li Zhuofen [4].

Financial Performance - Revenue decreased by approximately 15.9% to approximately RMB 75.1 million for the six months ended 30 June 2024 (2023: approximately RMB 89.3 million) [6] - Gross profit recorded in the amount of approximately RMB 20.3 million for the six months ended 30 June 2024 (2023: approximately RMB 25.6 million) [6] - The Group recorded a loss of approximately RMB 92.3 million for the six months ended 30 June 2024 (2023: approximately RMB 14.6 million) [6] - Basic loss per share was approximately RMB 3.45 cents for the six months ended 30 June 2024 (2023: approximately RMB 0.52 cent) [6] - The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2024 (2023: Nil) [6] - Total comprehensive loss for the period was RMB 91,595,000, compared to RMB 9,896,000 in the same period last year [15] - The company reported a basic loss per share of RMB (3.45) for the six months ended June 30, 2024, compared to RMB (0.52) in the prior year [15] - The company reported a loss attributable to ordinary equity holders of RMB 92,311,000 for the six months ended June 30, 2024, compared to a loss of RMB 13,797,000 for the same period in 2023 [73] Market Trends and Challenges - The global home furnishing industry faced challenges due to high interest rates, inflation, and a slowdown in consumer spending [8] - The increasing focus on sustainable living practices and smart home technologies is shaping demand for innovative home furnishings [8] - The global home goods industry faced significant challenges during the reporting period, with the U.S. economy slowing more than expected due to weakened consumer spending and high inflation [9] - The company faced substantial operational pressures due to high interest rates, inflation, and increased competition from e-commerce platforms [127] Strategic Initiatives - The company expanded its production capacities by establishing new facilities in Southeast Asia, specifically Cambodia, with full production expected to commence in the latter half of 2024 [10] - The newly established overseas factory aims to serve key markets in Europe and the U.S., responding to significant tariffs imposed on imported goods from China [10] - The company has diversified its market presence by entering Australia, Ireland, and Japan, with Australia showing promising market reception and a steady influx of orders [10] - The company has incorporated eco-friendly materials into its sofa production to align with growing consumer interest in environmental protection and energy efficiency [10] - The company developed innovative modular sofa products to optimize space utilization and transportation efficiency in response to rising logistic costs [129] - Marketing and sales efforts were increased in key European markets including the United Kingdom, France, Norway, Spain, and Ireland during the reporting period [132] Financial Position and Liquidity - Current liabilities totaled RMB 389,987,000, an increase from RMB 351,969,000 as of December 31, 2023 [16] - Total non-current assets decreased to RMB 30,000,000 from RMB 43,034,000, indicating a reduction in long-term asset holdings [16] - Cash and cash equivalents increased to RMB 7,487,000 from RMB 4,753,000, showing improved liquidity [16] - The company reported no additional bank loans during the reporting period, demonstrating a robust financial standing that supports future growth [12] - The Group incurred a net loss of approximately RMB 92.3 million during the six months ended 30 June 2024, with current liabilities exceeding current assets and total liabilities exceeding total assets by approximately RMB 208.1 million [141] Operational Efficiency - The company has implemented stringent inventory management practices to prevent overstocking and reduce transportation costs, aiming for positive cash flow for long-term sustainability [10] - The Group's cost of sales decreased by approximately 14.0%, from approximately RMB 63.7 million for the six months ended 30 June 2023 to approximately RMB 54.8 million for the corresponding period in 2024 [139] - Selling and distribution expenses slightly decreased by approximately 3.7%, from approximately RMB 21.8 million for the six months ended 30 June 2023 to approximately RMB 21.0 million for the six months ended 30 June 2024 [139] - Administrative expenses increased by approximately 12.1%, from approximately RMB 19.9 million for the six months ended 30 June 2023 to approximately RMB 22.3 million for the six months ended 30 June 2024 [139] Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [157] - The management will continue to review corporate governance practices to comply with regulatory requirements and meet shareholder expectations [158] - The company has complied with all code provisions of the Corporate Governance Code during the reporting period [159] - The audit committee comprises non-executive directors, ensuring compliance with the Listing Rules regarding independent non-executive directors [160] Shareholder Information - Mr. Tse Kam Pang holds 1,300,038,000 shares, representing approximately 47.27% of the company's shareholding [172] - The company maintained a public float of more than 25% of its issued share capital as required under the Listing Rules as of the report date [191] - The largest supplier accounted for around 13.3% of total purchases during the same period [184] Future Outlook - The company maintains a cautious yet optimistic outlook for the second half of 2024, anticipating potential interest rate cuts and focusing on operational excellence [12] - The company is committed to resilience and adaptability in navigating the evolving business environment, focusing on developing innovative products tailored to customer needs [152] - Future investments will focus on enhancing the technical skills of factory employees and expanding production lines to introduce stylish products that resonate with market trends [156]

Financial Performance - Revenue for the six months ended June 30, 2024, decreased by approximately 15.9% to approximately RMB 75.1 million, compared to RMB 89.3 million for the same period in 2023[1] - Gross profit for the same period was approximately RMB 20.3 million, down from RMB 25.6 million in 2023[1] - The company recorded a loss of approximately RMB 92.3 million for the six months ended June 30, 2024, compared to a loss of approximately RMB 14.6 million in 2023[1] - Basic loss per share for the period was approximately RMB 3.45, compared to RMB 0.52 in 2023[1] - Total revenue for the group was RMB 75,092 thousand, a decline of 16% from RMB 89,255 thousand for the same period in 2023[10] - The group recorded a loss before tax of RMB 92,311 thousand, compared to a loss of RMB 14,634 thousand in the same period last year[10] - The net loss for the company increased to RMB 92.3 million, compared to a net loss of RMB 14.6 million in 2023, primarily due to a 200% increase in shipping costs and a one-time provision of RMB 60.6 million for receivables[34] - Basic loss per share for the six months ending June 30, 2024, is approximately RMB 3.45, compared to RMB 0.52 in 2023, with total losses attributable to ordinary equity holders amounting to RMB 92.3 million[35] Assets and Liabilities - Non-current assets decreased to RMB 30.0 million as of June 30, 2024, from RMB 43.0 million as of December 31, 2023[5] - Current assets totaled RMB 181.9 million as of June 30, 2024, down from RMB 240.9 million as of December 31, 2023[5] - Current liabilities increased to RMB 390.0 million as of June 30, 2024, compared to RMB 352.0 million as of December 31, 2023[5] - The company reported a net liability of RMB 243.8 million as of June 30, 2024, compared to RMB 152.5 million as of December 31, 2023[6] - The group’s total liabilities increased to RMB 455,659 thousand as of June 30, 2024, compared to RMB 436,510 thousand as of December 31, 2023[12] - The company is facing significant uncertainty regarding its ability to continue as a going concern, with current liabilities exceeding current assets by approximately RMB 208.1 million as of June 30, 2024[45] Segment Performance - For the six months ended June 30, 2024, the retail segment generated external sales of RMB 22,205 thousand, a decrease of 46% compared to RMB 41,030 thousand for the same period in 2023[10] - The production segment reported external sales of RMB 52,887 thousand, down 9% from RMB 48,225 thousand in the previous year[10] - Retail segment assets decreased to RMB 23,873 thousand as of June 30, 2024, from RMB 29,677 thousand as of December 31, 2023[12] - Production segment assets fell to RMB 143,550 thousand as of June 30, 2024, down from RMB 216,186 thousand as of December 31, 2023[12] Cost Management - The cost of goods sold for the first half of 2024 was RMB 54,510 thousand, down from RMB 63,934 thousand in the same period of 2023, reflecting a reduction of 14.7%[19] - Sales cost decreased by approximately 14.0% from about RMB 63.7 million for the six months ending June 30, 2023, to approximately RMB 54.8 million for the same period in 2024[36] - Other income and gains significantly dropped from approximately RMB 7.9 million in 2023 to about RMB 0.1 million in 2024, primarily due to a one-time reversal of excess severance provisions in 2023 amounting to RMB 6.6 million[37] - Selling and distribution expenses slightly decreased by about 3.7% from approximately RMB 21.8 million in 2023 to about RMB 21.0 million in 2024[38] - Administrative expenses increased by approximately 12.1% from about RMB 19.9 million in 2023 to approximately RMB 22.3 million in 2024[39] - Financing costs rose by approximately 56.9% from about RMB 5.1 million in 2023 to approximately RMB 8.0 million in 2024, mainly due to an increase in bank and other borrowings by about RMB 56.2 million[40] Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[1] - The company established a factory in Cambodia, expected to commence production in the second half of the year, to mitigate the impact of tariff restrictions on Chinese manufactured products[33] - The company actively participated in the High Point Market in the U.S., which contributed 33.8% of total revenue, to strengthen its market position[31] - The company is expanding its marketing and sales efforts in Europe, particularly in the UK, France, Norway, Spain, and Ireland, which collectively contributed 20.4% of revenue[31] - The company is focusing on product innovation, including modular sofa products designed for better space utilization and shipping efficiency[30] - The company is addressing the growing market demand for sustainable furniture by creating stylish sofas made from eco-friendly leather materials[30] - The company aims to enhance long-term competitiveness through strategic measures despite the challenging market environment[33] Employee and Corporate Governance - As of June 30, 2024, the company employed 337 employees, a decrease from 350 employees as of December 31, 2023[47] - Total salary and related costs (excluding director remuneration) for the six months ended June 30, 2024, amounted to approximately RMB 24.6 million, compared to RMB 23.2 million for the same period in 2023, reflecting an increase of 6.0%[47] - The company has not granted any stock options under the stock option plan since its adoption on December 10, 2016, and there were no unexercised stock options as of June 30, 2024[48] - The audit committee, consisting of four independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and regulations[55] Dividends and Shareholder Information - The board of directors did not recommend any interim dividend for the six months ended June 30, 2024[1] - No interim dividend has been recommended for the six months ending June 30, 2024, compared to no dividend for the same period in 2023[24] - The company maintains a sufficient public float of over 25% of its issued share capital as required by the listing rules[58] - The board expresses gratitude to the management team and employees for their contributions and to shareholders and business partners for their support[59]