Financial Performance - Total revenue for the period decreased to HKD 79.4 million, down from HKD 89.6 million in 2023, representing a decline of approximately 13.5%[14] - Gross profit for the period was HKD 46.3 million, compared to HKD 51.4 million in 2023, reflecting a decrease of about 10.0%[14] - The net loss for the period was HKD 11.1 million, compared to a net loss of HKD 9.2 million in 2023, indicating a worsening of approximately 20.7%[14] - Basic loss per share was HKD 1.39, compared to HKD 1.14 in 2023, representing an increase of about 22.0%[14] - For the six months ended September 30, 2024, the company's revenue was HKD 79,375,000, a decrease from HKD 89,625,000 in the same period of 2023, representing a decline of approximately 11.3%[39] - The gross profit for the same period was HKD 46,264,000, down from HKD 51,368,000 in 2023, indicating a decrease of about 10%[39] - The company reported a pre-tax loss of HKD 11,114,000 for the six months ended September 30, 2024, compared to a pre-tax loss of HKD 9,156,000 in the previous year, reflecting a worsening of approximately 21.4%[39] - The group reported a pre-tax loss of HKD 11,114,000 for the six months ended September 30, 2024, compared to a loss of HKD 9,156,000 in the same period of 2023[65] Revenue Breakdown - Retail segment revenue was HKD 74.7 million, accounting for 94.1% of total revenue, down from 88.1% in 2023[14] - Revenue from "at • home" retail segment increased to HKD 20.1 million, up from HKD 15.8 million in 2023, marking a growth of approximately 27.3%[14] - Retail furniture revenue was HKD 74,664,000, down from HKD 78,902,000, reflecting a decline of 5.6%[57] - Wholesale furniture revenue decreased to HKD 3,708,000 from HKD 5,852,000, a drop of 36.6%[57] - Engineering project revenue fell to HKD 1,003,000 from HKD 4,871,000, representing a decline of 79.4%[57] - Other income increased to HKD 1,699,000 from HKD 1,779,000, a slight decrease of 4.5%[59] Assets and Liabilities - As of September 30, 2024, the company's cash and cash equivalents amounted to HKD 34,900,000, down from HKD 43,400,000 as of March 31, 2024, a decrease of about 19.4%[33] - The current assets and current liabilities were approximately HKD 90,800,000 and HKD 59,400,000, respectively, resulting in a current ratio of 1.5, slightly down from 1.6 as of March 31, 2024[35] - As of September 30, 2024, total non-current assets decreased to HKD 31,824,000 from HKD 39,473,000 as of March 31, 2023, representing a decline of approximately 19.5%[41] - Current assets totaled HKD 90,770,000, down from HKD 105,710,000, indicating a decrease of about 14.2%[41] - The company's current liabilities totaled HKD 59,379,000, down from HKD 64,988,000, indicating a decrease of approximately 8.5%[41] - Non-current liabilities decreased to HKD 9,618,000 from HKD 15,484,000, representing a decline of about 37.9%[41] Operational Strategy - The company continues to focus on expanding its online shopping platform to enhance market coverage and revenue[17] - The company aims to cater to both high-end and mass markets through its diverse product range, including mattresses and home furnishings[24] - The company plans to adopt a cautious expansion strategy due to the challenging retail market and conservative local consumer spending[32] Corporate Governance - The company has complied with all corporate governance codes as per the listing rules during the reporting period[90] - The company did not declare any interim dividend for the period, consistent with the previous year[37] - The group did not declare any interim dividends for the period, consistent with the previous year[63] Company Structure - The company operates a total of 24 sales points across Hong Kong as of September 30, 2024[25] - The company operates over 100 distributors in Hong Kong and Macau for its brands, including "欧化宝" and "斯林百蘭"[30] - The flagship store "欧化傢俬尊尚店" in Hung Hom has a total floor area of approximately 21,700 square feet, showcasing high-end furniture brands[26] - As of September 30, 2024, the company holds significant equity interests in various subsidiaries, including 4,121,416,834 shares (74.71%) in Emperor International Holdings Limited[83] - The company has a total of 600,000,000 shares (75.00%) held by Yang Shoucheng Investment Holdings in controlled corporations[86] - The company has not granted any stock options under its stock option plan since its adoption on January 8, 2018, with an available limit of 80,000,000 shares for future grants[89] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the reporting period[96]

Financial Performance - Total revenue for the six months ended September 30, 2024, decreased to HKD 79.4 million, down from HKD 89.6 million in 2023, representing a decline of approximately 12.4%[4] - Gross profit for the same period was HKD 46.3 million, compared to HKD 51.4 million in 2023, reflecting a decrease of about 10.0%[4] - Net loss for the period was HKD 11.1 million, compared to a net loss of HKD 9.2 million in 2023, indicating a worsening of approximately 20.7%[5] - Basic loss per share was HKD 1.39, compared to HKD 1.14 in 2023, reflecting an increase in loss per share of about 21.9%[5] - For the six months ended September 30, 2024, the group's revenue was HKD 79,375,000, a decrease of 11.4% compared to HKD 89,625,000 for the same period in 2023[29] - The gross profit for the same period was HKD 46,264,000, down from HKD 51,368,000, reflecting a decline in gross margin[29] - The group reported a pre-tax loss of HKD 11,114,000 for the six months ended September 30, 2024, compared to a loss of HKD 9,156,000 in the previous year[29] - The company reported a loss of HKD 11,114,000 for the six months ended September 30, 2024, compared to a loss of HKD 9,156,000 for the same period in 2023, indicating an increase in loss of approximately 21.4%[47] Revenue Breakdown - Retail segment revenue was HKD 74.7 million, accounting for 94.1% of total revenue, down from 88.1% in 2023[4] - The "European Furniture" and "European Furniture Prestige Store" retail revenue totaled HKD 35.2 million, representing 47.1% of total retail revenue, down from 53.2% in 2023[4] - "at home" retail revenue increased to HKD 20.1 million, up from HKD 15.8 million in 2023, marking a growth of approximately 27.3%[4] - Retail furniture sales contributed HKD 74,664,000, while wholesale furniture sales dropped significantly to HKD 3,708,000 from HKD 78,902,000 in the previous year[43] Assets and Liabilities - As of September 30, 2024, the group's cash and cash equivalents amounted to HKD 34,900,000, down from HKD 43,400,000 as of March 31, 2024[25] - Current assets decreased to HKD 90,770,000 from HKD 105,710,000, indicating a decline of 14.2%[32] - Total liabilities increased to HKD 59,379,000, compared to HKD 1,090,000 in the previous period, highlighting a significant rise in current liabilities[32] - The company's equity attributable to equity holders was HKD 53,597,000, down from HKD 64,711,000, reflecting a decrease of 17.2%[32] - Non-current assets totaled HKD 31,824,000 as of September 30, 2024, down from HKD 39,473,000 as of March 31, 2024[32] Operational Highlights - The company operates a total of 24 sales points in Hong Kong as of September 30, 2024, focusing on furniture products[7] - The company has established an online shopping platform for its brands to expand market coverage and revenue[8] - The company aims to enhance customer experience by offering a diverse range of furniture products tailored to different market segments[14] - As of September 30, 2024, the group operates 24 retail points in Hong Kong, including various store formats targeting mid to high-income customers[16] - The group plans to adopt a cautious expansion strategy due to the competitive retail market and conservative local consumer spending[23] - The group has opened new stores, including a "Slumberland" store in Shatin and a "Slumberland" department store in Tsuen Wan during the reporting period[16] Cost Management - The total employee cost for the period was HKD 22,500,000, a decrease from HKD 23,000,000 in the previous year[26] - The cost of goods sold for the period was HKD 33,111,000, down from HKD 38,257,000 in the prior period, reflecting a decrease of 13.5%[45] Governance and Compliance - The interim financial statements have not been reviewed or audited by the company's auditor but have been reviewed by the audit committee[54] - The company has complied with all corporate governance code provisions during the reporting period[54] - The board of directors consists of five executive directors and three independent non-executive directors, ensuring a diverse governance structure[58] Shareholder Information - The average number of ordinary shares in issue during the period remained constant at 800,000,000 shares[47] - The net loss attributable to equity holders of the parent company was reported, with no interim dividend declared for the period[46] Receivables and Payables - Trade receivables as of September 30, 2024, amounted to HKD 3,040,000, a decrease from HKD 3,901,000 as of March 31, 2024, reflecting a reduction of approximately 22.1%[51] - Trade payables and notes payable as of September 30, 2024, totaled HKD 2,355,000, an increase from HKD 2,285,000 as of March 31, 2024, representing a rise of approximately 3.1%[52] - The company maintains strict control over its outstanding receivables, with a credit period generally ranging from one to two months for wholesale and project clients[50] Market Position - The company continues to focus on its core business of retail and wholesale furniture, with no significant new product launches or market expansions reported[38] - The group continues to focus on enhancing brand awareness through diverse marketing strategies, including social media and promotional events[20]

Financial Performance - The Group's total revenue decreased to HK$171.6 million for the year ended 31 March 2024, down from HK$216.1 million in 2023, representing a decline of approximately 20.6%[11] - Gross profit for the year was HK$99.7 million, compared to HK$133.2 million in the previous year, indicating a decrease of about 25.2%[11] - The Group recorded a net loss of HK$25.0 million for the year, compared to a net loss of HK$21.0 million in 2023, reflecting an increase in losses of approximately 19%[13] - Basic loss per share was HK3.13 cents, compared to HK2.63 cents in the previous year, indicating a worsening of the loss per share[13] - Cash and cash equivalents decreased to HK$43.4 million in 2024 from HK$62.1 million in 2023[55] - Current assets were approximately HK$105.7 million, down from HK$128.2 million in 2023, while current liabilities decreased to HK$65.0 million from HK$69.9 million[56] - The current ratio declined to 1.6 in 2024 from 1.8 in 2023, and the quick ratio decreased to 1.0 from 1.2[56] - The Group maintained a zero gearing ratio, with no bank borrowings reported for both 2023 and 2024[55] - Total staff costs, including Directors' remuneration, were HK$43.6 million in 2024, down from HK$45.9 million in 2023[57] Retail Operations - Retail segment revenue amounted to HK$155.1 million, accounting for 90.4% of total revenue, a slight increase from 90.2% in 2023[12] - The aggregate retail sales revenue of "Ulferts" and "Ulferts Signature" was HK$78.0 million, contributing 50.3% to total retail revenue, down from 56.4% in 2023[12] - The Group operated a total of 24 points-of-sale in Hong Kong as of 31 March 2024, under various trade names including "Ulferts" and "at • home"[22] - The Group operates a total of 24 points of sale (POS) in Hong Kong as of March 31, 2024, including 1 "Ulferts Signature" store, 3 "Ulferts" stores, 5 "at • home" stores, 6 "Slumberland" stores, and 9 "Ulfenbo" stores[38] - "Ulferts Signature" flagship store has a gross floor area of approximately 21,700 square feet, featuring premium brands such as Cornelio Cappellini, Malerba, and Crystal Stone[39] - The Group offers over 50 furniture brands, including international brands like himolla, Gamma, MIDJ, egoitaliano, and MALERBA, focusing on both high-end and mass market segments[34] - "Slumberland" targets up-market customers with premium mattresses, while "Vono" caters to the mass market[32] - "Ulfenbo" has been recognized with the "Hong Kong Top Brand Mark" for ten consecutive years since 2014, focusing on affordable quality products for mass market consumers[33] - The Group's retail strategy includes a comprehensive sales channel with stores located in upscale residential areas and major shopping areas to attract substantial foot traffic[40] - The "at • home" stores are designed to meet the needs of young couples and new families, offering compact furniture suitable for small living spaces[30] Market Conditions - Market conditions remain challenging, with sluggish demand for furniture due to deepening competition and a gloomy property market[14] - The macro environment presents ongoing challenges, with a slow recovery expected in the local property and furniture markets[51] Online and Wholesale Operations - The Group is enhancing its online shopping platforms for "Ulferts", "at • home", and "Ulfenbo" to maximize market coverage and revenue[26] - The Group operates a wholesale business through over 100 dealers in Hong Kong and Macau, focusing on its own brand "Ulfenbo" and British brands "Slumberland" and "Vono" for mattresses and bedding products[44] Management and Governance - The company reported a significant increase in overall management and business strategies under the leadership of Executive Director and Managing Director Chan Chuen Yin, who has over 30 years of experience in operations and business development[63] - The company has a diverse management team with extensive experience across various sectors, including retail, property investment, and entertainment, enhancing its strategic capabilities[67] - The company is focused on corporate governance, with key members like Vanessa Fan overseeing overall corporate management and business strategy, ensuring effective operational policies[72] - The financial management is overseen by Wong Chi Fai, who has over 30 years of experience in finance and management, contributing to the company's strategic planning and development[68] - The company is committed to high standards of corporate governance to ensure accountability, responsibility, and transparency[169] - The Company has adopted a Board Diversity Policy to achieve a diverse Board with a balance of skills, experience, and perspectives[187] - The Board consists of seven Directors, including four Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a diverse mix of skills and experience[182] - The INEDs' term of appointment is subject to retirement by rotation and re-election provisions, maintaining independence[195] - The Board has established mechanisms to ensure independent views and input are available, enhancing governance effectiveness[183] Corporate Social Responsibility - The company is actively involved in community and youth development initiatives, led by its directors, which aligns with its corporate social responsibility goals[64] Shareholder Information - The Group did not pay any interim dividend to shareholders during the Year, and no final dividend was recommended for the Year[84] - As of March 31, 2024, Mr. Alex Yeung holds 600,000,000 shares, representing 75.00% of the issued voting shares of the Company[121] - The Company has a share option scheme with a mandate limit of 800,000,000 shares, unchanged throughout the year[128] - The remuneration of employees is determined based on individual responsibility, competence, skills, experience, performance, and market pay levels[117] - The Company has no equity-linked agreements other than the Share Option Scheme during the year[129] Compliance and Audit - The Company complied with the disclosure requirements regarding non-exempt continuing connected transactions as per Chapter 14A of the Listing Rules[152] - The independent auditor issued unqualified conclusions regarding the Group's non-exempt continuing connected transactions[154] - The independent non-executive Directors confirmed that the non-exempt continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[158] - Ernst & Young will retire, and a resolution for their reappointment as independent auditor will be proposed at the 2024 AGM[163] - The Company fully complied with all code provisions of the Corporate Governance Code during the Year[170] Workforce Diversity - As of March 31, 2024, the Board's gender diversity includes three female directors, representing 43% of the Board[193] - The total workforce comprises 56% female and 44% male, while senior management consists of 33% female and 67% male[194] - The Company aims to maintain a target of no less than 25% female directors on the Board, reflecting its commitment to gender diversity[193] - The board consists of seven members, with three women, representing 43% gender diversity, exceeding the target of at least 25%[197]

Revenue Performance - Retail segment revenue was HKD 155,100,000, a decrease from HKD 195,000,000 in 2023, accounting for 90.4% of total revenue[1] - Revenue from "European Furniture" and "European Furniture Prestige Store" totaled HKD 78,000,000, down from HKD 110,000,000 in 2023, representing 50.3% of total retail revenue[1] - Total revenue decreased to HKD 171.6 million for the year ended March 31, 2024, down from HKD 216.1 million in 2023, representing a decline of approximately 20.6%[43] - The group reported external customer revenue of HKD 171,638,000 for the year ended March 31, 2024, compared to HKD 216,148,000 for the previous year, indicating a decrease of approximately 20.6%[84] - Revenue from furniture sales decreased to HKD 171,638,000 in 2024, down 20.6% from HKD 216,148,000 in 2023[95] Profit and Loss - The group reported a total loss of HKD 25,006,000 for the year, compared to a loss of HKD 21,017,000 in 2023[16] - The company recorded a net loss of HKD 25 million for the year, compared to a net loss of HKD 21 million in 2023, reflecting an increase in losses of approximately 19%[55] - Basic loss per share was HKD 3.13, compared to HKD 2.63 in 2023, representing a deterioration of about 19.1%[55] - The group reported a pre-tax loss of HKD 25,006,000 for the year 2024, compared to a loss of HKD 21,017,000 in 2023, indicating an increase in losses of approximately 19%[101] Cost Management - The total employee cost for the year was HKD 43,600,000, a decrease from HKD 45,900,000 in 2023, with the number of employees reduced to 126 from 133[14] - The cost of goods sold decreased to HKD 71,979,000 in 2024 from HKD 82,964,000 in 2023, reflecting a reduction of approximately 13.2%[88] - Depreciation of property, plant, and equipment decreased to HKD 2,435,000 in 2024 from HKD 5,909,000 in 2023, a reduction of approximately 58.8%[88] - The group’s trade payables decreased to HKD 2,285,000 in 2024 from HKD 5,199,000 in 2023, reflecting a decrease of about 56.1%[107] Financial Position - Cash and cash equivalents were HKD 43,400,000, down from HKD 62,100,000 in 2023, with no bank borrowings reported[13] - The group maintained a zero debt ratio, indicating strong financial stability[13] - Current assets and current liabilities as of March 31, 2024, were approximately HKD 105,700,000 and HKD 65,000,000, respectively, resulting in a current ratio of 1.6, down from 1.8 in 2023[65] - Non-current assets decreased from HKD 68,052,000 in 2023 to HKD 39,473,000 in 2024, reflecting a reduction of approximately 42.2%[69] - The group’s net asset value decreased from HKD 89,717,000 in 2023 to HKD 64,711,000 in 2024, a decline of about 28%[71] Market and Brand Strategy - The company aims to enhance brand awareness through various promotional activities, including social media engagement and seasonal promotions[53] - The group has implemented a diversified marketing strategy to enhance its market presence and customer engagement[64] - The group’s "European Treasure" brand has been awarded the "Hong Kong Brand Logo" for ten consecutive years since 2014, indicating strong brand recognition in the market[61] - The company operates a total of 24 sales points under various brand names, focusing on furniture and bedding products[57] - The company has established over 100 distributors in Hong Kong and Macau for its wholesale business, covering its own brand and other international brands[54] Operational Developments - The group opened a new "European Treasure" store in Tuen Mun during the year, expanding its retail presence[10] - The flagship store "European Furniture Prestige Store" in Hung Hom has a total floor area of approximately 21,700 square feet[10] - The group operates a total of 24 retail outlets, including 3 "European Furniture" showrooms, 5 "at • home" stores, and 6 "Simmons" stores, along with 9 "European Treasure" stores and counters in department stores[63] - The group’s "at • home" store received the "Quality Service Leader Quarterly Award" for the furniture and home goods category from the Hong Kong Retail Management Association for the period from April to June 2023[75] Employee Incentives - The group has adopted a share option scheme to incentivize employees, details of which will be included in the annual report[25] - The group’s management emphasized strict control over overdue receivables, with senior management reviewing outstanding debts regularly[92] Market Challenges - The furniture retail sales value index has not fully recovered to normal levels, indicating ongoing challenges in market demand[56] - Other income and gains totaled HKD 4,271,000 in 2024, a decline of 36.7% from HKD 6,749,000 in 2023, primarily due to the absence of government subsidies received in the previous year[96] - Trade receivables, net of impairment, amounted to HKD 3,901,000 in 2024, an increase from HKD 3,085,000 in 2023, indicating a rise in overdue accounts[101]

Financial Performance - Total revenue for the six months ended September 30, 2023, decreased to HKD 89.6 million, down from HKD 118.1 million in 2022, representing a decline of approximately 24.2%[4] - Gross profit for the same period was HKD 51.4 million, compared to HKD 72.8 million in 2022, indicating a decrease of about 29.3%[4] - The company recorded a net loss of HKD 9.2 million for the period, compared to a net profit of HKD 0.509 million in 2022, resulting in a basic loss per share of HKD 1.14[5] - Revenue for the six months ended September 30, 2023, was HKD 89,625,000, a decrease of 24.4% compared to HKD 118,140,000 for the same period in 2022[27] - Gross profit for the same period was HKD 51,368,000, down 29.3% from HKD 72,762,000 in 2022[27] - The company reported a loss before tax of HKD 9,156,000 for the six months ended September 30, 2023, compared to a profit of HKD 509,000 in the previous year[27] - The company recorded a net loss of HKD 9,156,000 for the six months ended September 30, 2023, compared to a profit of HKD 509,000 in the same period of 2022[30] - The total equity as of September 30, 2023, was HKD 80,561,000, down from HKD 114,734,000 as of September 30, 2022, reflecting a decrease of 29.8%[30] - The company’s furniture retail revenue was HKD 78,902,000, down 25.3% from HKD 105,613,000 in the prior year[41] Operational Highlights - The retail segment revenue was HKD 78.9 million, accounting for 88.1% of total revenue, down from 89.4% in 2022[4] - The company operates 25 sales points in Hong Kong, with various retail lines including 1 "Europian Furniture Prestige Store," 3 "Europian Furniture" stores, and 10 "Europian Treasure" stores[13] - The flagship store "Europian Furniture Prestige Store" has a total floor area of approximately 21,700 square feet, showcasing high-end brands[13] - The company focuses on a diversified product range, offering over 50 furniture brands, including international names like himolla and Gamma[11] - The "Europian Treasure" brand targets the mass market, providing affordable bedding products to enhance customer sleep experiences[10] - The retail revenue from "Europian Furniture" and "Europian Furniture Prestige Store" combined was HKD 42 million, accounting for 53.2% of total retail revenue[4] - The company has established several online shopping platforms to expand market coverage[7] - The company plans to open a new "欧化宝" store in Tuen Mun New Town Plaza, indicating ongoing market expansion efforts[20] Cash Flow and Financial Position - As of September 30, 2023, the company's cash and cash equivalents were HKD 57,100,000, down from HKD 62,100,000 as of March 31, 2023[21] - The current ratio as of September 30, 2023, was 1.7, slightly down from 1.8 as of March 31, 2023[23] - The company has no bank borrowings as of September 30, 2023, maintaining a debt ratio of zero[21] - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 18,878,000, down from HKD 23,706,000 in 2022, representing a decline of 20.0%[32] - Cash and cash equivalents decreased by HKD 4,968,000 during the period, ending at HKD 57,091,000 compared to HKD 76,173,000 at the end of the same period in 2022[32] Employee and Management Information - Employee count decreased to 124 as of September 30, 2023, from 138 in the previous year, with total employee costs at HKD 23,000,000[24] - Total remuneration for key management personnel increased to HKD 3,346,000 from HKD 3,216,000 year-on-year[57] - There were changes in director information, with two new executive directors appointed and one resigning from a different company[68] Dividends and Shareholder Information - The company will not declare any interim dividend for the current period, consistent with the previous year[25] - The company reported no taxable profits in Hong Kong for the period, consistent with the previous year[45] - Major shareholders include Yang Shoucheng Investment Holdings Limited, holding 600,000,000 shares, representing 75% of the issued shares[63] Governance and Compliance - The company has adopted a stock option plan to attract and retain talented participants, with a total of 80,000,000 stock options available for grant during the reporting period[65] - The company has complied with all provisions of the corporate governance code as per the listing rules during the reporting period[66] - No purchases, sales, or redemptions of the company's listed securities were conducted by the company or its subsidiaries during the reporting period[70] - The interim financial statements included in the report have not been reviewed or audited by the company's auditor, but have been reviewed by the audit committee[69] Market Challenges - The company anticipates continued challenges in the local market due to macroeconomic factors and competition, affecting future performance[20]

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。 （於香港註冊成立之有限公司） （股份代號：1711） 2023/2024 年度之中期業績公告 歐化國際有限公司（「本公司」）之董事會（「董事會」或「董事」）宣佈本公司及其附屬公 司（統稱「本集團」）截至2023年9月30日止六個月（「本期間」）之未經審核簡明綜合業 績。 管理層討論及分析 業績 由於營商環境艱難，本集團於本期間的總收入不可避免地減少至89,600,000港元 （2022年：118,100,000港元）。毛利為51,400,000港元（2022年：72,800,000港元）。 零售分部收入為78,900,000港元（2022年：105,600,000港元），佔本集團總收入88.1% （2022年：89.4%）。「歐化傢俬」及「歐化傢俬尊尚店」之零售收入合共為42,000,000 港元（2022年：60,300,000港元），仍為主要收入來源，佔總零售收入53.2%（2022 年：57.1% ...

Financial Performance - The total revenue of the Group decreased to HK$216.1 million for the year ended March 31, 2023, down from HK$225.5 million in 2022, representing a decline of approximately 6.2%[9]. - Gross profit for the year was HK$133.2 million, compared to HK$142.6 million in 2022, indicating a decrease of about 6.5%[9]. - The Group recorded a net loss of HK$21.0 million for the year, compared to a net profit of HK$4.1 million in 2022, marking a significant turnaround in performance[11]. - Basic loss per share was HK2.63 cents, compared to basic earnings of HK0.52 cent per share in the previous year[11]. - The Group's cash and cash equivalents as of March 31, 2023, were HK$62.1 million, down from HK$76.8 million in 2022[53]. - The Group's current assets and current liabilities were approximately HK$128.2 million and HK$69.9 million, respectively, resulting in a current ratio of 1.8, up from 1.6 in 2022[54]. - The Group's total staff costs for the year were HK$45.9 million, an increase from HK$44.9 million in 2022[55]. - The Board does not recommend any payment of final dividend for the year ended March 31, 2023, compared to HK0.50 cent per share in 2022[57]. - The Group had no bank borrowings as of March 31, 2023, resulting in a debt ratio of zero, consistent with 2022[58]. - The current ratio and quick ratio improved to 1.8 and 1.2 respectively, from 1.6 and 1.0 in 2022[58]. - The Group's retained profits and accumulated losses movements are detailed on page 69 of the annual report[93]. Retail Segment Performance - Retail segment revenue amounted to HK$195.0 million, accounting for 90.2% of total revenue, down from 94.1% in the previous year[10]. - The retail sales revenue of "Ulferts" and "Ulferts Signature" was HK$110.0 million, contributing 56.4% to total retail revenue, a decrease from 64.3% in 2022[10]. - The Group's retail sales revenue from "Slumberland" and "Ulfenbo" increased to HK$48.2 million, accounting for 24.7% of total retail revenue, up from 14.9% in 2022[10]. - The Group operates 26 sales points in Hong Kong as of March 31, 2023, with specific retail lines including 1 "Ulferts Signature", 3 "Ulferts", 5 "at • home", 6 "Slumberland" stores, and 11 "Ulfenbo" outlets[34][35]. - "Ulferts" focuses on high-quality, stylish furniture targeting middle to high-mid income groups, while "Ulferts Signature" caters to up-market customers seeking luxury European tailor-made furniture[25][36]. - "at • home" stores are designed to meet the needs of young couples and new families, offering stylish and compact furniture suitable for small living spaces[30][32]. Market Conditions - The furniture market remained weak due to macroeconomic issues, including ongoing interest rate hikes and geopolitical tensions, impacting overall sales[15]. - The Group expects the demand for furniture to gradually pick up, despite current market challenges due to interest rate hikes and increased competition[48]. Corporate Governance and Structure - The Board consists of seven Directors, with four Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a diverse mix of skills and experience[180][184]. - The Board's gender diversity includes three female directors, representing 43% of the total, exceeding the target of at least 25% female representation[194][197]. - The Board has established mechanisms to ensure independent views are available, including annual meetings between the Chairman and all INEDs without the presence of other Directors[186]. - The Company adopted a Board Diversity Policy to achieve a balance of skills, experience, and perspectives relevant to its business nature[187][189]. - The Company is committed to a corporate culture focusing on customer centricity, excellence in products and services, people first, and positivity[170]. Employee and Director Remuneration - The remuneration of Directors is determined by the Board based on a written remuneration policy aligned with business strategy and shareholder interests[155]. - Employee remuneration includes basic salary, housing allowances, pension contributions, and performance-related bonuses[156]. - The Group's number of employees as of March 31, 2023, was 133, down from 144 in 2022[55]. Related Party Transactions - The Group had transactions with connected persons under the Master Leasing Agreement ("2020 MLA") for the term from April 1, 2021, to March 31, 2024[138]. - The independent auditor issued an unqualified letter regarding the Group's Disclosed Continuing Connected Transactions (CCTs) in accordance with the Listing Rules[150]. - The terms of each Definitive Leasing Agreement are to be on normal commercial terms or no less favorable than those offered by independent third parties[138]. Future Outlook and Strategy - The Group aims to enhance its market presence by enriching its product offerings and launching more vigorous promotions, including the addition of "Slumberland" and "Vono" to its portfolio[48]. - The Group has established multiple online shopping platforms to expand market coverage and reach a broader customer base[22].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 （於香港註冊成立之有限公司） 1711 （股份代號： ） 2022/2023 年度之全年業績公告 歐化國際有限公司（「本公司」）之董事會（「董事會」或「董事」）宣佈本公司及其附屬公司 （統稱「本集團」）截至2023年3月31日止年度（「本年度」）之綜合業績。 業績 由於營商環境艱難，本集團於本年度的總收入不可避免地減少至216,100,000港元（2022 年：225,500,000港元）。毛利為133,200,000港元（2022年：142,600,000港元）。 零售分部收入為195,000,000港元（2022年：212,200,000港元），佔本集團總收入90.2%（2022 年：94.1%）。「歐化傢俬」及「歐化傢俬尊尚店」之零售收入合共為110,000,000港元（2022 年：136,400,000港元），仍為主要收入來源，佔總零售收入56.4%（2022年：64.3%）。「 ...

Financial Performance - Total revenue increased by 9.6% to HKD 118,140,000 for the six months ended September 30, 2022, compared to HKD 107,821,000 in the same period of 2021[15]. - Gross profit rose to HKD 72,762,000, up from HKD 69,332,000 in the previous year[15]. - Net profit for the period was HKD 509,000, a decrease from HKD 562,000 in 2021, resulting in basic earnings per share of HKD 0.06 compared to HKD 0.07 in the prior year[18]. - The group reported revenue of HKD 118,140,000 for the six months ending September 30, 2022, an increase from HKD 107,821,000 in the same period of 2021, representing a growth of approximately 9.3%[42]. - Gross profit for the same period was HKD 72,762,000, compared to HKD 69,332,000 in 2021, indicating a gross margin improvement[42]. - The group reported a pre-tax profit of HKD 509,000 for the period, down from HKD 562,000 in the previous year, indicating a decrease of 9.4%[67]. - The cost of goods sold and services provided was HKD 44,807,000, compared to HKD 37,658,000 in the prior period, representing an increase of 19.3%[63]. Retail Segment Performance - Retail segment revenue was HKD 105,613,000, accounting for 89.4% of total revenue, with a slight increase from HKD 103,826,000 in 2021[15][17]. - The retail income from "Ulferts" and "Ulferts Prestige" was HKD 60,300,000, representing 57.1% of total retail income, down from 65.0% in 2021[17]. - "at • home" retail income remained stable at HKD 20,000,000, accounting for 18.9% of total retail income[17]. - The total retail income from "Slumberland" and "Ulferts" increased to HKD 25,400,000, representing 24.0% of total retail income, up from 15.5% in 2021[17]. - Retail furniture revenue reached HKD 105,613,000, up from HKD 103,826,000, reflecting a growth of 1.7% year-over-year[59]. - Wholesale furniture revenue increased significantly to HKD 6,560,000 from HKD 3,417,000, marking an increase of 92.5%[59]. Operational Highlights - The company operates 28 sales points in Hong Kong, focusing on high-quality European imported furniture[19]. - The company is the exclusive distributor for "Slumberland" and "Vono" in Hong Kong and Macau, targeting both high-end and mass markets[21][24]. - The product range includes over 50 furniture brands, with a focus on modern styles and high-quality materials to meet diverse customer needs[25]. - As of September 30, 2022, the group operates 28 retail points in Hong Kong, with flagship store "欧化傢俬尊尚店" covering approximately 21,700 square feet[29]. - The company has opened a "斯林百蘭" store-in-store at 德福廣場 and a dedicated counter in a department store in 深水埗, expanding its retail presence[29]. Financial Position - The group has maintained a zero debt ratio as of September 30, 2022, with cash and cash equivalents amounting to HKD 76,200,000[38]. - The current ratio improved to 1.8 from 1.6 as of March 31, 2022, reflecting better liquidity management[38]. - As of September 30, 2022, total assets amounted to HKD 143,456 thousand, a decrease from HKD 153,748 thousand as of March 31, 2022, representing a decline of approximately 6.4%[44]. - The total equity as of September 30, 2022, was HKD 111,243 thousand, down from HKD 114,734 thousand as of March 31, 2022, reflecting a decline of approximately 3.2%[44]. - Cash and cash equivalents at the end of the reporting period were HKD 76,173 thousand, a decrease from HKD 91,921 thousand at the end of the same period in 2021, representing a decline of about 17.1%[47]. - Current liabilities totaled HKD 78,479 thousand as of September 30, 2022, down from HKD 93,988 thousand as of March 31, 2022, indicating a reduction of approximately 16.5%[44]. - The company’s total liabilities decreased to HKD 113,365 thousand as of September 30, 2022, from HKD 138,752 thousand as of March 31, 2022, reflecting a reduction of about 18.4%[44]. - The company’s inventory as of September 30, 2022, was HKD 48,297 thousand, down from HKD 57,833 thousand as of March 31, 2022, indicating a decrease of approximately 16.5%[44]. Employee and Management Costs - The total employee cost for the period was HKD 24,100,000, up from HKD 23,200,000 in 2021, reflecting an increase in workforce investment[39]. - The total remuneration for key management personnel was HKD 3,216,000, an increase from HKD 3,088,000 in the previous period, reflecting a growth of 4.1%[78]. Dividends and Shareholder Information - The group has not declared any interim dividend for the period, consistent with the previous year[40]. - The company paid a final dividend of HKD 4,000 thousand during the period, compared to HKD 5,040 thousand in the previous year[45]. - The group did not declare any interim dividends for the period, consistent with the previous year[65]. - As of September 30, 2022, no directors or senior executives of the company held any interests or short positions in the company's shares, related shares, or debentures[81]. - Ms. Fan Min Cheung holds 10,500,000 shares (0.29%) in Emperor International Holdings Limited, a related corporation[82]. - Mr. Wong Chi Fai holds HKD 2,000,000 in debentures of Emperor International, a related corporation[82]. - Yang Shou Cheng Investment Holdings Limited owns 600,000,000 shares (75%) in the company, as recorded in the equity disclosure register[84]. - First Trust Management AG, as a trustee of a private discretionary trust, also holds 600,000,000 shares (75%) in the company[84]. Compliance and Governance - The company has adopted the European Securities Code for its directors' securities trading, ensuring compliance with the relevant regulations[88]. - No share options have been granted under the share option scheme since its adoption on January 8, 2018[89]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[94]. - The interim financial statements have not been reviewed or audited by the company's auditors but have been reviewed by the audit committee[93]. - The company has complied with all corporate governance code provisions during the reporting period[87]. Market Challenges - The group continues to face challenges from geopolitical tensions, inflation, and market volatility, impacting consumer confidence and furniture demand[36].

Financial Performance - For the year ended March 31, 2022, total revenue was HK$225,457,000, a decrease of 3.5% from HK$234,504,000 in the previous year[8]. - Retail revenue accounted for HK$212,166,000, down 2.7% from HK$216,979,000 year-on-year[8]. - Gross profit for the year was HK$142,637,000, representing a decline of 6.7% compared to HK$152,891,000 in the prior year[8]. - Net profit decreased significantly to HK$4,142,000, down 75.5% from HK$16,826,000 in the previous year[8]. - Basic earnings per share fell to HK$0.52 cents, a decrease of 75.2% from HK$2.10 cents year-on-year[8]. - Total dividends per share were HK$0.50 cents, down from HK$0.63 cents in the previous year, reflecting a reduction of 20.6%[8]. - The Group's total revenue decreased slightly to HK$225.5 million in 2022 from HK$234.5 million in 2021, representing a decline of approximately 3.8%[10]. - Gross profit decreased to HK$142.6 million in 2022 from HK$152.9 million in 2021, a decrease of about 6.7%[10]. - The Group's net profit was HK$4.1 million in 2022, down from HK$16.8 million in 2021, a decline of approximately 75.6%[10]. - Basic earnings per share decreased to HK0.52 cent in 2022 from HK2.10 cents in 2021[10]. - The proposed final dividend for the year is HK$0.50 per share, totaling approximately HK$4,000,000, down from HK$0.63 per share in the previous year[63]. Market Strategy and Future Outlook - The company plans to focus on enhancing retail operations and exploring new market opportunities to drive future growth[7]. - The board is committed to improving operational efficiency and cost management strategies in response to the challenging market conditions[7]. - Future outlook remains cautious due to ongoing market uncertainties, but the company aims to stabilize its performance in the upcoming fiscal year[7]. - The Group's focus on market expansion includes targeting both high-end and mass market segments through its various brands[20]. - The Group aims to strengthen its market presence by expanding its retail network to seize opportunities as the market revives[36]. Retail Operations - Retail segment revenue amounted to HK$212.2 million in 2022, accounting for 94.1% of total revenue, compared to 92.5% in 2021[10]. - The sales revenue of "Ulferts" and "Ulferts Signature" decreased to HK$136.4 million in 2022 from HK$151.4 million in 2021, accounting for 64.3% of total retail revenue[10]. - The sales revenue of "at Ć home" grew by 9.1% to HK$44.2 million in 2022, representing 20.8% of total retail revenue[10]. - The Group operates 28 points-of-sale in Hong Kong as of March 31, 2022, focusing on high-quality home furniture[12]. - The Group opened two "at Ć home" stores and three "Ulfenbo" stores, expanding market coverage with flagship stores occupying over 10,000 square feet and 2,000 square feet respectively[26]. Product Offerings and Partnerships - The Group became the sole agent of "Slumberland" and "Vono" in Hong Kong and Macau in February 2022, expanding its product offerings in the mattress segment[15]. - The mattress segment includes "Slumberland" for the high-end market, "Vono" for the middle-income group, and "Ulfenbo" for the mass market, enhancing product coverage[23]. - The Group's diverse product portfolio includes mattresses, pillows, sofas, and beds, catering to various consumer needs[20]. - The Group has been appointed as the sole agent for "Slumberland" and "Vono" mattresses in Hong Kong and Macau, further diversifying its product offerings[26]. Financial Management - Cash and cash equivalents decreased to HK$76.8 million from HK$93.7 million in 2021, with a zero gearing ratio[39]. - Current assets were approximately HK$153.7 million, while current liabilities increased to HK$94.0 million, resulting in a current ratio of 1.6, down from 2.0 in 2021[39]. - The Group will implement prudent financial and capital management policies to enhance operating efficiency amid external uncertainties[36]. - The Group's financial position as of March 31, 2022, was deemed sufficient for operations and future development plans[39]. Corporate Governance - The Company has a Share Option Scheme adopted on January 8, 2018, but no options were granted, exercised, canceled, or lapsed since its adoption[82]. - The Directors' biographical details and remuneration are documented in the annual report, providing transparency on leadership compensation[70]. - The Company has maintained permitted indemnity provisions for Directors and officers against potential liabilities associated with legal proceedings[70]. - The Company reviewed the structure, size, composition, and diversity of the Board during the year[165]. - The Company adopted a Board Diversity Policy to achieve a balance of skills, experience, and perspectives[170]. Risk Management and Internal Controls - Internal control policies and procedures are regularly updated to provide guidance on risk management and internal control systems, ensuring the safeguarding of assets and the accuracy of financial records[192]. - The management is responsible for designing and implementing internal control and risk management policies, ensuring effective execution in day-to-day operations[196]. - The Group's risk management strategies include identifying significant risks, including environmental, social, and governance (ESG) risks, to achieve strategic objectives[192]. - The internal audit department conducts independent appraisals of the adequacy and effectiveness of Control Systems, reporting findings to the Audit Committee and the Board regularly[196]. Quality Control and Procurement - Quality control measures include requiring suppliers to provide compliance evidence for products[200]. - The procurement team assesses new suppliers' workmanship and product quality before placing orders[200]. - Regular inspections and meetings are held to address quality issues with products[200]. - The company engages independent third parties to inspect products manufactured in China[200].