Financial Performance - Total revenue for the fiscal year ended March 31, 2025, was HKD 17,249,385, a decrease of 8.2% from HKD 18,798,633 in the previous year[4] - Gross profit for the fiscal year was HKD 6,844,162, down 5.6% from HKD 7,248,027 year-on-year[4] - Operating profit decreased to HKD 2,824,388, representing a decline of 7.7% compared to HKD 3,060,922 in the previous year[4] - Net profit for the year was HKD 2,154,808, a decrease of 10.1% from HKD 2,396,002 in the previous year[4] - Basic earnings per share for the year was HKD 53.19, down from HKD 59.09 in the previous year, reflecting a decline of 10.1%[5] - The company reported a total comprehensive income of HKD 1,857,918, an increase of 4.7% from HKD 1,774,530 in the previous year[4] - The company recorded a net loss of approximately HKD 541,062 thousand, compared to a loss of about HKD 304,195 thousand in the previous year, mainly due to fair value losses on financial assets and impairment losses[54] - Profit attributable to equity holders decreased by approximately 10.4% from about HKD 2,302,366,000 in FY2024 to about HKD 2,062,617,000 in FY2025, with the net profit margin declining from approximately 12.5% to about 12.2%[58] Assets and Liabilities - Total assets increased to HKD 20,023,592, up from HKD 19,807,520, indicating a growth of 1.1%[6] - Total equity rose to HKD 13,649,166, an increase of 4.4% from HKD 13,075,669 in the previous year[7] - Non-current liabilities decreased to HKD 260,386, down from HKD 304,216, a reduction of 14.4%[7] - As of March 31, 2025, the group's cash and bank balances were approximately HKD 4,006,314,000, an increase from about HKD 3,273,830,000 as of March 31, 2024[60] - The group's current ratio as of March 31, 2025, was approximately 1.4, compared to about 1.3 as of March 31, 2024[64] Revenue Breakdown - For the fiscal year ending March 31, 2025, total external sales reached HKD 16,902,634, with a significant contribution from sofas and related products at HKD 11,742,512, representing 69.4% of total sales[18] - Revenue from external customers in China (including Hong Kong and Macau) for 2025 is HKD 10,236,290, a decrease of 16.5% from HKD 12,257,665 in 2024[22] - North America revenue includes HKD 3,882,551 from the US and HKD 499,937 from Canada, with a slight increase in Canada from HKD 332,981 in 2024[23] - Revenue from the Chinese market fell by approximately 15.4% to about HKD 6,583,804 thousand, with sofa sales decreasing by about 10.6% to approximately 1,001 thousand sets[45] - Revenue from the North American market was 4,420,102 thousand HKD, an increase of 3.2% year-on-year, representing 26.2% of total operating revenue, up from 23.3%[41] - Revenue from European and other overseas markets increased by 22.9% year-on-year to 1,468,854 thousand HKD, accounting for 8.7% of total operating revenue, up from 6.5%[42] Segment Performance - The segment performance for the same period showed a total profit of HKD 3,259,059, with the sofa segment contributing HKD 2,268,828, accounting for 69.7% of the total segment profit[18] - The cost of inventory for the fiscal year ending March 31, 2025, was HKD 7,804,170, with the sofa segment accounting for HKD 4,365,414, which is 55.9% of the total inventory cost[21] - Employee benefits expenses for the fiscal year 2025 totaled HKD 3,055,078, with the sofa segment contributing HKD 1,957,905, representing 64.1% of total employee benefits expenses[21] Market Strategy and Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[20] - The group plans to enhance its domestic market potential by focusing on core cities and key regions, improving brand awareness and product sales through refined marketing strategies[77] - The group aims to increase R&D investment to launch more intelligent and environmentally friendly home products to meet consumer demand for high-quality living[77] - The group will continue to strengthen its market position in North America and Europe by expanding new sales channels and customer resources[78] Governance and Compliance - The company has adopted the corporate governance principles and applicable rules as per the listing rules, with a deviation from the principle C.2.1 regarding the separation of roles of Chairman and CEO[84] - Mr. Huang Minli serves as both the Chairman and CEO, overseeing the overall operations of the group, with the board believing this structure maintains a balance of power and responsibility[85] - The audit committee consists of four independent non-executive directors, ensuring compliance with the listing rules and providing diverse expertise[87] - The financial statements for the fiscal year ending March 31, 2025, have been reviewed and confirmed by the external auditor, PwC[91] Dividends and Shareholder Information - The company plans to declare a final dividend of HKD 0.12 per share for the year ending March 31, 2025, totaling approximately HKD 465,370[29] - The board proposed a final dividend of HKD 0.12 per share for FY2025, with total dividends for the year amounting to approximately 50.8% of profit attributable to equity holders[59] - Shareholders listed on the register as of July 10, 2025, will be eligible to receive the proposed final dividend, pending approval at the annual general meeting[90] - The proposed final dividend is expected to be paid on July 23, 2025, to shareholders registered as of July 10, 2025[90]

Investment Rating - The investment rating for the home furnishing sector is "Positive" [2] Core Insights - The report highlights that the national subsidy policy has begun to show effects, leading to a convergence in revenue decline and a differentiation in profitability within the industry. The real estate sector has gradually reached its bottom after a year of adjustment, with new home transactions stabilizing and second-hand home transactions recovering. The home decoration market is expected to maintain a "442" structure in 2024, with new homes accounting for 40%, existing homes for 40%, and second-hand homes for 20% [2][9] - Leading companies in the home furnishing sector are transitioning from store expansion to refined operations, focusing on cost reduction and exploring new market opportunities such as home renovation and e-commerce. For instance, Oppein has encouraged dealers to consolidate resources and close inefficient stores, significantly reducing various assessment indicators to focus on market advantages [2][3][9] Industry Overview - The national subsidy policy has normalized, positively impacting domestic sales. In Q4 2024, leading companies like Kuka and Zhijia showed revenue growth, with Kuka's domestic sales increasing by approximately 12.9% year-on-year in Q1 2025. The report anticipates that orders and revenues for leading companies will see tangible growth starting from Q2 2025 [3][10] - In terms of exports, companies like Kuka and Oppein are expected to maintain double-digit growth in overseas sales, with Oppein establishing a solid sales network in 146 countries and regions, achieving a revenue increase of 34.4% in overseas channels in 2024 [4][11] Segment Analysis - The core categories, particularly cabinets and wardrobes, are showing signs of recovery, with supporting categories also improving. Leading companies are actively implementing whole-home strategies and enhancing scene-based designs. For example, Oppein is building a more comprehensive supply chain system for home products and renovation materials [5][6] - The report notes that the profitability of leading companies is diverging, with Oppein achieving a gross margin of 34.3% in Q1 2025, while others like Zhijia experienced a decline in gross margin due to internal reforms and channel subsidies [7][9] Sales Channels - Retail channels are recovering first, while bulk channels are under pressure, with a general decline of over 20% in Q1 2025. The report indicates that the performance of single stores has improved, with leading companies like Oppein and Zhijia reporting year-on-year revenue increases of 10% and 43%, respectively [6][9]

Investment Rating - The report does not explicitly provide an investment rating for the smart bed industry Core Insights - The smart bed industry in China is experiencing significant growth, with the global market size increasing from approximately $1.328 billion in 2015 to around $5.531 billion in 2023, reflecting a compound annual growth rate (CAGR) of 19.52% [5][33] - The report highlights a concerning trend in sleep quality among the Chinese population, with the sleep quality index dropping to 62.61 in 2023, indicating a decline in overall sleep health [20][22] - The smart bed market is projected to reach a size of 4.5 billion yuan by 2027, driven by increasing awareness of sleep health and the aging population in China [26][37] Summary by Sections Industry Overview - The report investigates the current state and market size of the smart bed industry in China, focusing on market conditions and application scenarios [2] - There is a notable increase in sleep-related patents in China, with 2,734 and 2,867 new patents filed in 2020 and 2021, respectively, indicating a trend towards scientific and intelligent product development [5][19] - The report emphasizes the importance of understanding sleep cycles and quality for better health and quality of life [10][12] Industry Chain Analysis - The smart bed industry is in its early stages, with a stable growth trajectory as sleep health issues gain consumer attention [26] - The industry chain includes upstream suppliers of smart sleep solutions, midstream manufacturers, and downstream retailers and consumers [27][31] - The market is expected to expand significantly due to the aging population, with a projected demand for approximately 1.795 million smart beds by 2026 [35][37] Market Size and Trends - The global smart bed market is expected to exceed $6 billion in 2024, with North America leading in market share due to high acceptance of smart technology [5][33] - The report forecasts that the smart bed market in China will grow to 39.9 billion yuan by 2026, reflecting changing market demands and technological advancements [35][37] Consumer Insights - The primary demographic for smart bed consumers is young adults aged 22-40, who represent 80.9% of the market [40][41] - The report identifies a significant portion of insomnia sufferers as being well-educated and facing economic pressures, which may contribute to sleep issues [43]

Investment Rating - The report maintains an "Overweight" rating for the consumer discretionary sector [7] Core Insights - The escalation of tariffs is reshaping global supply chains, leading to a structural impact on China's exports, while domestic demand is expected to benefit [1][11] - Companies with high domestic sales ratios are positioned to capitalize on the emerging opportunities in the local market as domestic brands continue to rise [1] Summary by Sections Home Appliances - Major home appliance companies like Haier are leveraging localization and production in Mexico to mitigate tariff impacts, thereby strengthening their market share in the U.S. [2][15] - The black appliance sector is seeing a shift towards Mexican production to buffer supply chain pressures, with companies like Hisense and TCL benefiting from cost control [2][16] Cleaning Appliances - The U.S. market remains highly dependent on Chinese manufacturing for cleaning appliances, with significant price increases expected due to high tariffs on imports from China and Vietnam [3][20] - Chinese companies are rapidly iterating products to gain market share in the U.S., with brands like Roborock surpassing local competitors in revenue [25][26] Light Industry and Home Furnishings - Southeast Asian production is likely to face challenges due to increased tariffs, but Chinese companies are actively seeking to adapt by expanding export regions and enhancing price transmission capabilities [4][29] - The reliance on the U.S. market for home furnishings has decreased, with exports expected to recover post-tariff adjustments [30][31] Cross-Border E-commerce - The supply chain disruptions are evident, but the competitive landscape may improve as smaller sellers face greater pressure due to the cancellation of the $800 tax exemption policy [5][39] - Major players are expected to benefit from market share consolidation as smaller competitors exit the market [40][41]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a target price of 4.68 HKD, with a projected relative return of over 20% within six months [12]. Core Views - The company reported a revenue of 8.5 billion HKD for FY25H1, a decrease of 7.4% year-on-year, with specific declines in various product categories [12]. - The Chinese market is experiencing weak consumer growth, with a notable drop in consumer confidence compared to last year [12]. - The company anticipates a gradual recovery in the home furnishings market due to increased government support and consumer stimulus measures [12]. - The overseas market shows signs of recovery, with North American sales increasing by approximately 18%, despite a 10% decrease in average selling prices due to structural changes [12]. Summary by Sections Financial Performance - FY25H1 net profit attributable to shareholders was 1.14 billion HKD, a slight increase of 0.3%, with a net profit margin of 13.7% compared to 12.7% in FY24H1 [12]. - Revenue projections for FY25-27 are adjusted to 17.8 billion HKD, 18.5 billion HKD, and 19.9 billion HKD, with net profits expected to be 2.28 billion HKD, 2.42 billion HKD, and 2.62 billion HKD respectively [12]. Market Analysis - The report highlights that the penetration rate of functional sofas in the Chinese market has increased from 7.2% to 9.7% and is expected to exceed 13% within five years [12]. - The company is focusing on enhancing store operations and expanding into lower-tier markets, with a net increase of 280 brand stores during the review period [12]. Strategic Initiatives - The company is actively participating in exhibitions to expand new channels and improve talent development within its sales team [12]. - There is a strong emphasis on product development and upgrading in response to recovering overseas market demand [12].

Investment Rating - The report maintains a "Buy" rating for the company [10][8]. Core Insights - The company reported FY2025H1 results with revenue and net profit of HKD 83.05 billion and HKD 11.39 billion, respectively, reflecting a year-on-year decline of 7% in revenue but a slight increase of 0.3% in net profit [2][6]. - Domestic sales are under pressure, but recent government subsidies are expected to provide a recovery, while export sales continue to show strong growth [6][7]. - The company is building high barriers in brand, product, and supply chain, enhancing competitiveness through design marketing and channel transformation, and is expected to continue gaining market share in the soft furniture industry [8][7]. Revenue Summary - Domestic sales decreased by 17% in H1, with offline and online sales down 15% and 22%, respectively [6][7]. - The company added 280 brand specialty stores, increasing the total to 7,516, focusing on expanding coverage in lower-tier markets and enhancing same-store sales performance [6][7]. - Export sales increased by 14%, with North America and Europe growing by 6% and 38%, respectively [7]. Profitability Analysis - Gross margin and net profit margin improved in FY2025H1, attributed to lower raw material costs and effective cost control [7][8]. - The average unit costs for various materials decreased, with leather and steel down by 5.3% and 8.3%, respectively [7]. - Advertising and marketing expenses decreased by 33%, and management expenses fell by 31%, contributing to overall profitability [7]. Future Outlook - The company anticipates a recovery in domestic sales driven by government subsidies and an improved product matrix [8]. - For FY2025-2026, the company expects net profits of HKD 24.5 billion and HKD 27.8 billion, with corresponding PE ratios of 7.9x and 7.0x [8][13].

Revenue Performance - Revenue for the first half of fiscal year 2025 was approximately HKD 8,305.373 million, a decrease of 7.1% year-on-year[9] - Revenue from the Chinese market decreased by 16.8% to approximately HKD 5,047.547 million, with sofa sales volume down 9.9% and average selling price down 4.0%[10] - North American sales volume increased by 18%, but average selling price decreased by 10.2%, resulting in a 5.7% increase in revenue to approximately HKD 2,153.816 million[11] - Revenue from Europe and other overseas markets grew by 37.7% to approximately HKD 732.697 million[11] - China market sales revenue decreased by 17.2% YoY to approximately 4,975,209 thousand HKD, with a RMB-denominated decrease of 16.8%[22] - North America sales revenue increased by 5.7% YoY to approximately 2,153,816 thousand HKD, despite a 10.2% decrease in average selling price[25] - Europe and other overseas markets (excluding Home Group) revenue grew by 37.7% YoY to approximately 732,697 thousand HKD[25] - Home Group revenue increased by 24.5% YoY to approximately 371,313 thousand HKD, driven by European market demand[25] - Total revenue and other income decreased by 7.4% YoY to approximately 8,471,446 thousand HKD, with an overall gross margin of 39.5%[26] - Sofa and matching products revenue decreased by 5.8% YoY to approximately 5,816,974 thousand HKD, with a 15.6% decline in China market revenue[34] - Bedding and matching products revenue dropped by 18.9% YoY to approximately 1,208,846 thousand HKD, mainly due to consumer downgrading in China[29] - Other products revenue decreased by 7.8% YoY to approximately 835,902 thousand HKD, primarily due to lower sales of iron frames and smart furniture in China[30] - Other business revenue increased by 12.1% YoY to approximately 72,338 thousand HKD, driven by higher property rental income[32] - Revenue for the period 3.2.2021-2.2.2024 is $2,000 million[159] - Revenue for the period 3.2.2024-2.2.2026 is $19.78 billion[161] - Revenue for the period 16.2.2022-15.2.2024 is $11.1 billion[178] - Revenue for the period 16.2.2024-15.2.2026 is $13,600 million[180] - Revenue for the period 16.2.2022-15.2.2025 is $13,600 million[189] - Revenue for the period 16.2.2026-15.2.2028 is $11.1 billion[194] - Revenue for the period 16.2.2022-15.2.2026 is $13,200 million[196] - Revenue for the period 3.2.2021-2.2.2025 is $1,200 million[169] - Revenue for the period 16.2.2025-15.2.2027 is $11.1 billion[185] - Revenue for the period 3.2.2025-2.2.2027 is $5.06 billion[168] Profitability and Margins - Gross profit margin increased by 0.4 percentage points to approximately 39.5%, and net profit margin increased by 1 percentage point to approximately 13.7%[9] - Profit attributable to equity holders of the company was approximately HKD 1,138.925 million, a slight increase of 0.3%[9] - Net profit attributable to equity holders increased by 0.3% to approximately HKD 1,138,925 thousand in the first half of fiscal year 2025, with a net profit margin of 13.7%[70] Market Performance - The company added 280 new stores, bringing the total number of stores to 7,516 by the end of the reporting period[10] - The company's store closure rate remained low at 4.8%[10] - The company plans to continue expanding overseas markets, particularly in North America and Europe, while focusing on domestic market recovery through initiatives like "trade-in" and "upgrade your home" campaigns[17] - The company continues to focus on expanding its global market presence, particularly in North America and Europe, leveraging its production capacity and cost advantages[83] - The company's smart home products are expected to gain further traction in the Chinese market as consumer preferences shift towards quality, brand, and value-for-money products[84] Expenses and Costs - Sales and distribution expenses decreased by 5.6% to approximately HKD 1,513,891 thousand in the first half of fiscal year 2025, with the percentage of revenue increasing from 17.9% to 18.2%[63] - Administrative and other expenses decreased by 30.8% to approximately HKD 311,617 thousand in the first half of fiscal year 2025, mainly due to the settlement of a lawsuit with a former supplier[66] - Financial costs decreased by 25.6% to approximately HKD 73,114 thousand in the first half of fiscal year 2025, primarily due to lower loan interest expenses[68] - Income tax expenses increased by 6.6% to approximately HKD 244,796 thousand in the first half of fiscal year 2025, with the tax rate increasing from 16.2% to 17.0%[69] - Net loss from other items decreased to approximately HKD 109,203 thousand in the first half of fiscal year 2025, compared to HKD 142,290 thousand in the same period last year, primarily due to credit loss provisions for other receivables[62] Dividends and Shareholder Information - The company maintained a dividend payout ratio of around 50%, declaring an interim dividend of 15 HK cents per share, with a payout ratio of 51.1%[12] - The company declared an interim dividend of HK$0.15 per share, unchanged from the previous year[86] - The company's Chairman, Mr. Wong Man Li, holds a 62.30% stake in the company through controlled corporation interests[88] - The company's issued share capital as of September 30, 2024, was 3,877,745,600 shares[90] - Man Wah Holdings Limited's issued share capital as of September 30, 2024, is 3,877,745,600 shares[99] - Man Wah Investment Limited holds 2,415,782,400 shares, representing 62.30% of the company's issued share capital[96] - Mr. Wong Man Li holds 800 shares in Man Wah Investment Limited, representing 80% of the associated company's equity[92] - Ms. Hui Hui Qing holds 200 shares in Man Wah Investment Limited, representing 20% of the associated company's equity[92] - No further share options were granted under the 2010 and 2020 Share Option Plans after their expiration/termination[102] - The company adopted a Share Award Plan on June 24, 2024, but no awards were granted during the review period[102] - 23,600 share options granted on January 17, 2020, remain unexercised with an exercise price of HKD 6.53[102] - 18,400 share options granted on January 17, 2020, remain unexercised with an exercise price of HKD 6.53[102] - 39,200 share options granted on January 17, 2020, remain unexercised with an exercise price of HKD 6.53[102] - 22,400 share options granted on January 28, 2019, remain unexercised with an exercise price of HKD 3.91[122] Legal and Financial Settlements - The company settled a lawsuit with a former supplier, paying a compensation of USD 8,250 thousand (approximately HKD 64,420 thousand) and reversing a provision of USD 10,693 thousand (approximately HKD 83,826 thousand)[76] Investments and Acquisitions - The company did not make any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures in the first half of fiscal year 2025, but continues to seek opportunities for acquisitions in the furniture industry[80] Employee Information - The company had 27,246 employees as of September 30, 2024, a decrease from 29,837 employees on March 31, 2024[81] - Total employee costs for the first half of fiscal year 2025 were approximately HK$1,490,404 thousand, compared to HK$1,479,784 thousand in the same period of fiscal year 2024[81] Product Development and Market Trends - The company's "Zero Wall, Zero Gravity" functional sofa product underwent its second technical iteration in 2024, enhancing its position in the smart home market[83] - The functional sofa penetration rate in the Chinese market increased from 7.2% in 2023 to 9.7% in 2024, with Euromonitor predicting it could exceed 13% within five years[84] Cash and Financial Position - Cash and bank balances (excluding restricted bank balances) stood at approximately HKD 4,283,927 thousand as of September 30, 2024, with good working capital turnover[71] - Short-term and long-term bank borrowings were approximately HKD 4,614,287 thousand and HKD 917 thousand, respectively, as of September 30, 2024, with weighted average interest rates of 5.07% for floating rates and 2.46% for fixed rates[73] Share Transactions - The company did not engage in any purchase, sale, or redemption of its listed securities during the review period[87]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 6.30 [2][4]. Core Views - Despite facing macro challenges, the company has managed to improve profit margins and maintain stable dividends [2]. - The company is expected to continue expanding its market presence, particularly in the overseas markets, while addressing trade challenges through strategic manufacturing locations [2][4]. Financial Overview - For FY2025, the company reported total revenue of HKD 84.7 billion, a decrease of 7.4% year-on-year, with main revenue declining by 7.1% [2]. - The gross profit margin improved to 39.5%, benefiting from a reduction in raw material costs [2]. - The net profit attributable to shareholders was HKD 11.4 billion, with a net profit margin of 51.5% [2]. - The company plans to increase its store count in China by 500-600 stores [2]. Market Performance - The Chinese market saw a decline in revenue by 17.2%, while North American revenue increased by 5.7% [2]. - The company continues to lead in global functional sofa sales, with a significant increase in overseas market revenue [2]. - The average selling price (ASP) in the Chinese market decreased by 10%, impacting overall revenue [2]. Product Performance - Sofa sales in China decreased by 5.8%, while bedding sales grew by 26.6% [2]. - The company is focusing on new product development and enhancing its sales team to drive growth [2]. Future Outlook - The report anticipates that the decline in the Chinese market will narrow in the second half of the fiscal year, supported by government subsidies [2]. - The company is well-positioned to capitalize on long-term growth opportunities in the functional sofa market, which currently has low penetration in China [2].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [2][12]. Core Insights - The company reported a revenue of HKD 8.31 billion for the first half of FY25, a year-on-year decrease of 7.1%, while the net profit attributable to shareholders was HKD 1.14 billion, reflecting a slight increase of 0.3% year-on-year [3]. - The company continues to maintain a favorable dividend payout ratio of 51.1%, with a dividend of HKD 0.15 per share [3]. - Domestic sales faced pressure due to a downturn in the real estate market and weak consumer spending, while overseas sales, particularly in Europe and other regions, showed significant growth [3]. Financial Performance Summary - For FY25H1, domestic sales decreased by 17.2%, while North America and Europe saw increases of 5.7% and 37.7%, respectively [3]. - The company’s gross profit margin improved to 39.5%, up 0.4 percentage points year-on-year, primarily due to a decrease in raw material costs [3]. - The net profit margin increased by 1.0 percentage point to 13.7% in FY25H1 [3]. Future Outlook - The domestic furniture consumption subsidy policy is expected to improve sales, with furniture retail sales showing a year-on-year increase of 0.4% and 7.4% in September and October, respectively [3]. - The U.S. market is anticipated to benefit from interest rate cuts, which may boost the real estate sector, while the company’s overseas production capacity and manageable tariff risks position it well for continued growth [3]. - Earnings per share (EPS) forecasts for FY25, FY26, and FY27 are projected at HKD 0.59, HKD 0.64, and HKD 0.70, respectively, with corresponding price-to-earnings (P/E) ratios of 8X, 7X, and 7X [3][6].

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company reported a revenue of HK$8.305 billion for H1 of the fiscal year 24/25, representing a year-on-year increase of 7.08%, with a net profit of HK$1.139 billion, showing a slight increase of 0.3% [2] - The gross margin improved to 39.5%, up by 0.4 percentage points year-on-year, while the net margin increased to 13.7%, up by 1.0 percentage points, indicating a significant enhancement in profitability [2][6] - The company has a dividend payout ratio of 51.1%, with a current dividend yield of 6-7% [2] Domestic Sales - Revenue from the Chinese market was HK$4.975 billion, down 17.2% year-on-year (excluding real estate), primarily due to declining consumer confidence [3] - Offline store revenue decreased by 14.9% to HK$3.487 billion, despite an increase of 280 stores to a total of 7,516, focusing on lower-tier markets and new cities [3] - Online sales fell by 21.6% to HK$1.007 billion, with efforts to enhance brand influence through live streaming and collaborations with key influencers [3] International Sales - Revenue from the North American market reached HK$2.154 billion, up 5.7%, with sales volume increasing by 18% despite a price drop of 10.2% [4] - Revenue from Europe and other overseas markets surged by 37.7% to HK$733 million, driven by a decrease in raw material costs [4] Product Categories - Revenue from sofas and accessories was HK$5.817 billion, down 5.83%, with total sales volume of 908,000 units, a 3.0% increase year-on-year [5] - Domestic sofa revenue decreased by 15.6%, while export sales volume increased by 22.8% [5] - Revenue from bedding (entirely domestic) fell by 18.95% to HK$1.209 billion due to insufficient domestic consumption [5] Financial Metrics - The gross margin was 39.5%, up 0.4 percentage points, primarily due to declining raw material prices [6] - The total expense ratio decreased to 22.91%, down 1.1 percentage points year-on-year [6] - The net profit margin improved to 13.7%, exceeding expectations [6] Earnings Forecast and Valuation - The company is expected to achieve revenues of HK$17.647 billion, HK$18.698 billion, and HK$19.826 billion over the next three fiscal years, with a projected decline of 4% in the first year [7]