G HUISEN GROUP Huisen Household International Group Limited 匯 森 家 居 國 際 集 團 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代號：2127 第二份中期報告 2024 24 17 21 22 24 25 27 Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY1-1111 Cayman Islands 26 28 2806 Conyers Trust Company (Cayman) Limited Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY1-1111 Cayman Islands 2024 2 3 2127 www.huisengufen.cn 2024 管理 層 討論及分析 338 2 33 3301-04 Conyers Dill & Pearman 市場回顧 中 美 間 貿 易 關 稅 繼 續 影 響 本 集 團 利 潤。即 使 受 到 全 球 經 濟 下 行 影 響,我 們 仍 對 行 ...

Financial Performance - The group's revenue for the twelve months ending December 31, 2024, was approximately RMB 1.01 billion, a decrease of about 72.3% compared to approximately RMB 3.64 billion for the twelve months ending December 31, 2023[3]. - The loss for the twelve months ending December 31, 2024, was approximately RMB 1,682.5 million, a significant decrease of about 928.79% compared to a profit of approximately RMB 203.0 million for the twelve months ending December 31, 2023[3]. - The basic and diluted loss per share for the twelve months ending December 31, 2024, was RMB 0.46, compared to a basic and diluted earnings per share of RMB 0.07 for the twelve months ending December 31, 2023[3]. - The group reported a gross loss of RMB 200.22 million for the twelve months ending December 31, 2024, compared to a gross profit of RMB 483.31 million for the same period in 2023[5]. - The company reported a net loss of RMB 168.25 million, a significant increase of 928.79% compared to the same period in 2023[53]. - The company's profit before tax for the year ending December 31, 2024, was RMB (1,680,105) thousand, compared to RMB 249,345 thousand for 2023, indicating a significant decline in profitability[30]. Assets and Liabilities - The total assets as of December 31, 2024, were RMB 4.90 billion, down from RMB 6.63 billion as of December 31, 2023[6]. - The net current assets as of December 31, 2024, were RMB 576.15 million, a decrease from RMB 1.97 billion as of December 31, 2023[6]. - The total liabilities as of December 31, 2024, were RMB 1.17 billion, compared to RMB 1.27 billion as of December 31, 2023[6]. - The company's equity attributable to owners as of December 31, 2024, was RMB 3.62 billion, down from RMB 5.25 billion as of December 31, 2023[7]. - The company's total inventory as of December 31, 2024, was RMB 527,267 thousand, a decrease from RMB 877,757 thousand in 2023[39]. - Trade receivables as of December 31, 2024, amounted to RMB 906,602 thousand, down from RMB 1,586,313 thousand in 2023, indicating improved collection or reduced sales[40]. - The company's trade payables decreased to RMB 155,018 thousand as of December 31, 2024, from RMB 434,071 thousand in 2023, suggesting improved cash flow management[44]. Revenue Breakdown - Revenue from external customers for the year ended December 31, 2024, was RMB 1,008,525 thousand, a decrease of 72.3% compared to RMB 3,640,712 thousand for the year ended December 31, 2023[17]. - The revenue breakdown by product for the year ended December 31, 2024, included RMB 717,399 thousand from panel furniture, RMB 231,486 thousand from soft furniture, and RMB 10,354 thousand from sports and custom furniture[21]. - Revenue from the United States for the year ended December 31, 2024, was RMB 460,776 thousand, a decrease of 80.1% from RMB 2,290,770 thousand in 2023[17]. - Sales to the United States accounted for 45.7% of total revenue in 2024, down from 62.9% in 2023, representing a decline of 17% in market share[59]. - Revenue from the top five customers totaled RMB 640.4 million, which is 63.5% of total sales, a decrease of approximately 8.1% from the previous year[61]. Expenses and Costs - The distribution and selling expenses increased to RMB 286.21 million for the twelve months ending December 31, 2024, compared to RMB 73.66 million for the same period in 2023[5]. - Research and development costs for the year ended December 31, 2024, were RMB 68,253 thousand, a decrease of 55.3% compared to RMB 152,602 thousand in 2023[24]. - The cost of materials consumed decreased by 64.9% to RMB 921.3 million in 2024 from RMB 2,626.5 million in 2023, primarily due to reduced furniture sales[65]. - The total sales cost decreased by 61.7% to RMB 1,208.7 million in 2024 from RMB 3,157.4 million in 2023, attributed to lower sales volume and reduced material costs[65]. Cash Flow and Liquidity - The group reported a net cash outflow from operating activities of RMB 327.4 million for the year ended December 31, 2024, compared to an outflow of RMB 93.7 million in 2023, indicating a worsening cash flow situation[67]. - As of December 31, 2024, the group had cash and bank balances of approximately RMB 5.59 million, indicating a tight liquidity position[67]. - The company’s cash and bank balances significantly decreased to RMB 45,468 thousand as of June 30, 2024, from RMB 463,355 thousand as of December 31, 2023[104]. Corporate Governance and Future Plans - The company is committed to maintaining high standards of corporate governance and has adopted the corporate governance code as per listing rules[94]. - The company plans to continue expanding markets outside the U.S. and strengthen its ODM capabilities to enhance market share and long-term business development[81]. - The group plans to enhance its core competitiveness by closely monitoring market conditions and taking necessary measures to improve operational performance[50].

Revenue and Financial Performance - Revenue for the reporting period was RMB 840 million, a decrease of 43.6% compared to the same period in 2023, with a net loss of RMB 380 million, a decrease of 336.3% year-on-year[7] - Total revenue from all product categories was RMB 836.6 million, with a gross margin of -22.1%, reflecting a 43.6% decline compared to the same period in 2023[8] - Revenue for the first half of 2024 decreased to RMB 836.569 million, a significant drop from RMB 1,482.052 million in the same period of 2023[58] - Gross loss for the first half of 2024 was RMB 184.956 million, compared to a gross profit of RMB 195.906 million in 2023[58] - Net loss attributable to the company's owners for the first half of 2024 was RMB 404.684 million, compared to a profit of RMB 161.328 million in 2023[58] - Total revenue from external customers fell to RMB 836.569 million in 2024 from RMB 1.482 billion in 2023[78] - The company's pre-tax profit for the six months ended June 30, 2024, was RMB -380.133 million, compared to RMB 183.716 million in the same period last year[89] - The company's basic and diluted earnings per share for the six months ended June 30, 2024, were RMB -0.11, compared to RMB 0.053 in the same period last year[92] Product Sales and Revenue Breakdown - ODM product sales accounted for over 80% of total sales during the reporting period, maintaining a consistent high proportion over the years[5] - Panel furniture revenue decreased by 52.6% to RMB 666.6 million, with a negative gross margin of 24.3%, primarily due to reduced demand from overseas markets like the US[8][9] - Soft furniture revenue increased by 289.6% to RMB 147.5 million, but gross margin declined to -17.2% due to lower average selling prices[8][10] - Revenue from sports furniture (e.g., ping pong tables, billiard tables) decreased by 73.1% to RMB 10.4 million due to reduced orders and lower product prices[12] - Revenue from panel furniture decreased to RMB 666.579 million in 2024 from RMB 1.405 billion in 2023[82] - Revenue from soft furniture increased to RMB 147.461 million in 2024 from RMB 37.846 million in 2023[82] - Revenue from sports furniture declined to RMB 10.353 million in 2024 from RMB 38.554 million in 2023[82] - Revenue from IT solution services was RMB 12.173 million in 2024, a new addition compared to no revenue in 2023[82] Market and Geographic Revenue - Total revenue from the US market decreased by 52.1% to RMB 425.5 million, with its share of total revenue dropping from 59.9% to 50.9%[12] - Revenue from external customers in the United States decreased to RMB 425.509 million in 2024 from RMB 887.552 million in 2023, a significant decline[78] - Revenue from China dropped to RMB 69.804 million in 2024 from RMB 99.993 million in 2023[78] Costs and Expenses - Total sales cost decreased by 20.6% to RMB 1.02 billion, primarily due to reduced material costs and the elimination of outsourcing fees[18] - Bank and other borrowing interest expenses increased to RMB 17.187 million in 2024 from RMB 9.601 million in 2023[84] - Depreciation expenses for property, plant, and equipment rose to RMB 83.211 million in 2024 from RMB 59.175 million in 2023[84] - R&D costs increased to RMB 44.590 million in 2024 from RMB 27.576 million in 2023[84] - Depreciation of property, plant, and equipment increased to RMB 83,211 thousand in 2024 from RMB 59,175 thousand in 2023[66] Cash Flow and Financial Position - Operating cash flow before working capital changes showed a loss of RMB 203.7 million, a 193% decline compared to the previous year's profit of RMB 219.1 million[21] - Cash and bank balances as of June 30, 2024, amounted to approximately RMB 45.5 million[23] - Trade receivables (net of impairment provisions) as of June 30, 2024, stood at approximately RMB 1,206.6 million, with impairment provisions of RMB 0.6 million during the reporting period[24] - Total assets decreased to RMB 5,931.803 million as of June 30, 2024, from RMB 6,634.296 million at the end of 2023[61] - Cash and bank balances dropped significantly to RMB 45.468 million as of June 30, 2024, from RMB 463.355 million at the end of 2023[61] - Trade receivables decreased to RMB 1,206.597 million as of June 30, 2024, from RMB 1,526.525 million at the end of 2023[61] - Total liabilities decreased to RMB 1,007.645 million as of June 30, 2024, from RMB 1,379.715 million at the end of 2023[61][62] - Operating cash flow for the six months ended June 30, 2024, was a net outflow of RMB 286,648 thousand, compared to a net outflow of RMB 218,879 thousand in the same period in 2023[66] - Investment activities resulted in a net cash outflow of RMB 82,723 thousand in 2024, compared to a net cash outflow of RMB 332,893 thousand in 2023[68] - Cash and cash equivalents decreased by RMB 417,887 thousand in 2024, compared to a decrease of RMB 581,224 thousand in 2023[68] - The company's cash and bank balances stood at RMB 45,468 thousand as of June 30, 2024, down from RMB 924,584 thousand as of June 30, 2023[68] - The company repaid borrowings of RMB 450,047 thousand in 2024, compared to RMB 80,784 thousand in 2023[68] Capital and Share Issuance - Net proceeds from the global offering amounted to approximately HKD 1,280.69 million, with an additional HKD 121.06 million from the partial exercise of the over-allotment option[30] - The company fully utilized the net proceeds from the global offering, with 45.4% allocated to establishing new production workshops and 33.0% to the second phase of the factory in Ganzhou, Jiangxi[30] - The company successfully placed 306,910,000 shares at HKD 0.13 per share, raising a net amount of HKD 39.3 million, which will be fully utilized for purchasing raw materials (e.g., timber) for ODM product manufacturing[32] - The company completed a subscription of 306,908,000 shares at HKD 0.135 per share, raising a net amount of HKD 40.8 million, also allocated for purchasing raw materials for ODM product manufacturing[34] - As of June 30, 2024, the company had fully utilized the HKD 39.3 million raised from the placement for raw material purchases[32] - As of June 30, 2024, the company had fully utilized the HKD 40.8 million raised from the subscription for raw material purchases[34] - The company issued new shares worth RMB 72.734 million during the first half of 2024[64] - The company issued and fully paid 3,682,908 thousand ordinary shares with a par value of HKD 0.1 per share as of June 30, 2024[112] Shareholder and Ownership Structure - Mr. Zeng Ming, a director, holds a 55.55% interest in the company through controlled corporate interests, representing 2,045,750,000 shares[36] - Chun Bai Limited, wholly owned by Mr. Zeng Ming, holds 2,045,750,000 shares, representing 55.55% of the issued shares[39] - Yggles World Pte. Ltd. holds 306,910,000 shares, representing 8.33% of the issued shares[39] - Kwok Property Pte. Ltd. holds 306,910,000 shares, representing 8.33% of the issued shares[39] - The company adopted a share option plan on December 2, 2020, allowing eligible participants including suppliers, customers, shareholders, and consultants to participate[42] - As of June 30, 2024, the total number of share options granted but not yet exercised under the plan was 214,836,300, with an exercise price of HKD 1.878 per share[47] - The total number of share options available for grant under the plan at the beginning and end of the reporting period was 85,163,700[50] - All 214,836,300 share options granted to external consultants were canceled during the period ending June 30, 2024[113] Operational and Strategic Developments - The company completed the main structure construction of a new production facility in Longnan and is progressing with internal decoration and equipment procurement[5] - The company is advancing the second phase of its Ganzhou Nankang factory and has made progress in smart home R&D, with patent applications underway[5] - The company plans to expand markets outside the U.S., strengthen ODM capabilities, and increase market share in the second half of 2024[28] - The company's capital expenditure on property, plant, and equipment for the six months ended June 30, 2024, was RMB 212.5425 million, a decrease from RMB 335.434 million in the same period last year[94] - The company's inventory as of June 30, 2024, was RMB 921.983 million, an increase from RMB 877.757 million as of December 31, 2023[98] - The company's trade receivables as of June 30, 2024, were RMB 1.206597 billion, a decrease from RMB 1.526625 billion as of December 31, 2023[100] - The company's subsidiaries in China benefit from a preferential corporate income tax rate of 15% due to their location in the Western Development Zone and their status as high-tech enterprises[89] - The company's right-of-use assets as of June 30, 2024, were RMB 53.667 million, a decrease from RMB 55.05 million as of December 31, 2023[95] - The company's lease liabilities as of June 30, 2024, were RMB 2.418 million, a decrease from RMB 3.255 million as of December 31, 2023[98] - Prepayments increased significantly to RMB 57,869 thousand as of June 30, 2024, compared to RMB 4,017 thousand as of December 31, 2023[102] - Recoverable VAT increased to RMB 279,117 thousand as of June 30, 2024, from RMB 243,336 thousand as of December 31, 2023[102] - Trade payables decreased to RMB 201,869 thousand as of June 30, 2024, from RMB 263,071 thousand as of December 31, 2023[106] - Bank loans due within one year decreased to RMB 631,160 thousand as of June 30, 2024, from RMB 733,596 thousand as of December 31, 2023[109] - Total borrowings decreased to RMB 720,410 thousand as of June 30, 2024, from RMB 823,596 thousand as of December 31, 2023[109] - Other payables and accrued expenses decreased to RMB 4,000 thousand as of June 30, 2024, from RMB 35,456 thousand as of December 31, 2023[107] - Accrued expenses decreased to RMB 23,443 thousand as of June 30, 2024, from RMB 39,595 thousand as of December 31, 2023[107] - Other payable taxes decreased to RMB 6,862 thousand as of June 30, 2024, from RMB 8,906 thousand as of December 31, 2023[107] Corporate Governance and Compliance - The company maintains a public float of not less than 25% as required by the listing rules[53] - The audit committee reviewed the interim financial statements and found no disagreements with management[56] - The company's registered office is located in the Cayman Islands, and its primary business location is in Longnan Economic and Technological Development Zone, Jiangxi Province, China[70] Miscellaneous - The company's property and equipment with a book value of approximately RMB 562.23 million were used as collateral for bank loans as of June 30, 2024[24] - The company had no significant capital commitments or contingent liabilities as of June 30, 2024[24] - The company did not hedge foreign exchange risks during the reporting period, with most revenues settled in USD, exposing it to potential currency depreciation impacts[25] - The company employed 3,470 staff as of June 30, 2024, with total employee costs of approximately RMB 118.0 million[27] - No interim dividend was recommended for the reporting period[28] - The company sold a subsidiary, resulting in a reduction of RMB 22.731 million in equity[64] - The company acquired intangible assets and prepayments for property, plant, and equipment amounting to RMB 31,848 thousand in 2024, compared to RMB 745,568 thousand in 2023[68]

Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 840 million, a decrease of about 43.6% compared to RMB 1.48 billion for the same period in 2023[1]. - The loss for the six months ended June 30, 2024, was approximately RMB 380.4 million, a decline of about 336.3% compared to a profit of RMB 161 million for the same period in 2023[1]. - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB 0.11, compared to a basic and diluted earnings per share of RMB 0.05 for the same period in 2023[1]. - Gross profit for the six months ended June 30, 2024, was a loss of RMB 184.96 million, compared to a gross profit of RMB 195.91 million for the same period in 2023[3]. - The operating profit before tax for the six months ended June 30, 2024, was a loss of RMB 380,133,000, compared to a profit of RMB 183,716,000 for the same period in 2023[25]. - The company reported a basic and diluted loss per share of RMB (11.0) for the six months ended June 30, 2024, compared to a profit of RMB 5.3 for the same period in 2023[27]. - The group's revenue for the reporting period was RMB 840 million, a decrease of 43.6% compared to the same period in 2023, with a net loss of RMB 380 million, a reduction of 336.3%[46]. - Total revenue for the six months ended June 30, 2024, was RMB 809.80 million, a decline of 45.0% compared to RMB 1,471.27 million in the prior year[55]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 5.93 billion, down from RMB 6.63 billion as of December 31, 2023[4]. - Current assets as of June 30, 2024, totaled RMB 2.51 billion, a decrease from RMB 3.24 billion as of December 31, 2023[4]. - The company's cash and bank balances as of June 30, 2024, were RMB 45.47 million, significantly reduced from RMB 463.36 million as of December 31, 2023[4]. - The company's non-current liabilities totaled RMB 100.58 million as of June 30, 2024, down from RMB 108.81 million as of December 31, 2023[5]. - The company's equity attributable to owners was RMB 4.92 billion as of June 30, 2024, compared to RMB 5.25 billion as of December 31, 2023[5]. - The company reported a significant decrease in trade receivables, which were RMB 1.21 billion as of June 30, 2024, down from RMB 1.53 billion as of December 31, 2023[4]. - Trade receivables as of June 30, 2024, amounted to RMB 1,265,723 million, down from RMB 1,586,313 million as of December 31, 2023, indicating a decline of about 20.2%[34]. - The total borrowings as of June 30, 2024, were RMB 720,410 million, down from RMB 823,596 million as of December 31, 2023, representing a decrease of approximately 12.5%[39]. Revenue Breakdown - Revenue from the United States was RMB 425,509 thousand, down 52.0% from RMB 887,552 thousand in the previous year[13]. - Revenue from the furniture segment was RMB 666,579 thousand, representing a decline of 52.5% from RMB 1,405,459 thousand in the same period last year[17]. - The company reported a new revenue stream of RMB 12,173 thousand from IT solutions services, which was not present in the previous year[17]. - ODM product sales accounted for over 80% of total sales during the reporting period, highlighting the group's strong design capabilities[46]. - The revenue from the U.S. market decreased by 52.1%, contributing 50.9% to total sales, down from 59.9% in the same period last year[51]. - The revenue from soft furniture increased by approximately 289.6% during the reporting period[49]. - ODM sales for the six months ended June 30, 2024, were RMB 740.15 million, accounting for 91.4% of total sales, a decrease of 39.5% from RMB 1,223.44 million in the same period of 2023[55]. - OEM sales for the same period were RMB 69.65 million, representing 8.6% of total sales, down 71.9% from RMB 247.83 million year-over-year[55]. Expenses and Costs - The company incurred research and development costs of RMB 44,590,000 for the six months ended June 30, 2024, compared to RMB 27,576,000 for the same period in 2023[20]. - The interest expense on bank and other borrowings was RMB 17,187,000 for the six months ended June 30, 2024, compared to RMB 9,601,000 for the same period in 2023[6]. - The income tax expense for the six months ended June 30, 2024, was RMB 292,000, significantly lower than RMB 22,757,000 for the same period in 2023[25]. - The company reported a total depreciation expense of RMB 94,701,000 for the six months ended June 30, 2024, compared to RMB 63,143,000 for the same period in 2023[20]. - Total expenses for property, plant, and equipment during the reporting period amounted to RMB 212,542,500, compared to RMB 335,434,000 for the six months ended December 31, 2023[29]. - Cost of materials consumed decreased by 21.6% to RMB 853.52 million from RMB 1,088.71 million in the previous year[57]. - Total sales costs fell by 20.6% to RMB 1,021.53 million from RMB 1,286.15 million year-over-year[57]. Market and Strategic Outlook - The company remains optimistic about the industry despite global economic downturns and continues to invest in R&D for better future planning[44]. - The ongoing trade tariffs between China and the U.S. continue to impact the company's profits, highlighting the need for strategic adjustments[44]. - The company has noted a decrease in domestic economic growth and consumer spending willingness, which may affect future performance[44]. - The company plans to enhance its market strategies and product development in response to the current economic challenges[44]. - The company expects the real estate market to stabilize and the furniture market to rebound in the second half of 2024, creating a favorable external environment[75]. - The group is actively expanding sales to mainland China and other regions to reduce reliance on the U.S. market[51]. - The company aims to continuously strengthen its ODM capabilities and expand its market share[75]. Corporate Governance and Management Changes - The financial statements are prepared in accordance with Hong Kong Accounting Standards and are unaudited[10]. - The company has not adopted any new accounting standards that would have a significant impact on its financial policies[10]. - The company has not declared any interim dividend for the six months ended June 30, 2024[26]. - The company does not recommend declaring any interim dividends for the reporting period, with no dividends declared as of June 30, 2023[76]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim performance without any dissenting opinions[89]. - The company has adopted corporate governance practices in compliance with the corporate governance code[84]. - The resignation of the executive director, Mr. Zeng Ming, will take effect on August 30, 2024, to allow him to focus on his professional development[91]. - Mr. Wu Runlu has been appointed as the chairman of the board effective August 30, 2024, to fill the vacancy left by Mr. Zeng's resignation[92].

Financial Performance - In the fiscal year 2023, the company's revenue was RMB 3.64 billion, an increase of 20.7% compared to RMB 3.02 billion in 2022, while net profit decreased by 39.3% due to trade tariffs between China and the US[45]. - The total sales cost for the fiscal year 2023 increased by 27.8% to approximately RMB 3.16 billion, up from RMB 2.47 billion in 2022, primarily due to increased sales[12]. - The cost of consumed materials rose by 37.3% to RMB 2.63 billion in 2023, compared to RMB 1.91 billion in 2022[12]. - Operating profit before changes in working capital was RMB 435.88 million in 2023, a decrease of 21.3% from 2022[76]. - The gross margin for panel furniture decreased to 13.2% in 2023 from 18.0% in 2022, attributed to price reductions amid the appreciation of the US dollar against the RMB[46]. - The company reported a net foreign exchange gain of RMB 32.07 million in 2023, down from RMB 80.62 million in 2022[13]. - In 2023, the company's revenue increased by 20.7%, while net profit decreased by 39.3% due to global economic downturns and the impact of trade tariffs between China and the US[53]. Customer and Market Insights - Revenue from the top five customers accounted for 77.1% of total sales in 2023, a decrease of 6.5 percentage points from 83.6% in 2022, with total sales to these customers increasing by 11.4% year-over-year[15]. - Revenue from the US accounted for 62.9% of total sales, up from 61% in 2022, while revenue from mainland China decreased from 7.2% in 2022 to 6.7% in 2023[32]. - The company has expanded its product sales to 46 countries in 2023, a decrease of 10 countries compared to 2022, while maintaining its market share in the US[32]. - The company is actively pursuing market expansion outside the US, including in African countries[32]. - The company anticipates a gradual recovery in furniture market demand in 2024 as developed economies, led by the US, ease interest rate hikes[33]. Investment and Use of Proceeds - The net proceeds from the global offering amounted to approximately HKD 1,280.69 million, with an additional HKD 121.06 million from the partial exercise of the over-allotment option[3]. - The company plans to utilize HKD 463 million (33.0%) of the proceeds for the second phase of its factory project in Ganzhou, Jiangxi Province, expected to be completed by June 30, 2024[4]. - The company has allocated HKD 140 million (10.0%) for general working capital and other corporate purposes[4]. - The company aims to enhance its product design and R&D capabilities with an investment of HKD 93 million (6.6%) from the proceeds[4]. Research and Development - The company has increased its research and development investment, with ODM product sales accounting for over 80% in the fiscal year 2023[44]. - The company plans to leverage its four R&D centers to enhance product innovation and market expansion in the smart home sector[53]. - The company aims to attract high-end R&D talent and deepen product innovation in panel and soft furniture[53]. Employee and Governance - The group employed a total of 3,075 employees as of December 31, 2023, with total employee costs approximately RMB 300.7 million, an increase from RMB 283.6 million in the previous year[181]. - The company is committed to providing competitive compensation and fostering a strong cultural value among employees, emphasizing loyalty and service[141]. - The board of directors maintained a 100% attendance rate at the annual general meeting, reflecting strong governance practices[129]. - The company has a continuous professional development program for its directors to ensure compliance with relevant training requirements[98]. Risk Management and Compliance - The company has implemented multiple risk management procedures and guidelines to identify potential risks affecting its operations and financial processes[91]. - The internal audit department reported risk issues to management, including strategic environment risks and operational risks[92]. - The company has adopted various risk management procedures to monitor and control risks effectively[90]. - The company has taken measures to prevent delays in performance announcements by enhancing early communication with banks and financial institutions during the audit process[94]. Shareholder Communication and Equity - The company has established a shareholder communication policy to ensure timely access to comprehensive information for shareholders[115]. - The financial reserves available for distribution to shareholders as of December 31, 2023, were detailed in the consolidated financial statements[143]. - The group has capital commitments of approximately RMB 681 million for the acquisition of intangible assets and property, plant, and equipment as of December 31, 2023, compared to RMB 114 million as of December 31, 2022[179]. - The group completed the acquisition of 100% equity in Jiangxi Bashen for RMB 191 million, with the payment made by December 31, 2023[182]. Future Outlook - The outlook for 2024 indicates a gradual recovery in consumer willingness to spend on furniture, supported by economic recovery and rising disposable income[187]. - The company plans to enhance product design and brand development to meet consumer demands for improved aesthetics and user experience[187]. - The company aims to strengthen management and expand international retail partnerships while continuing to innovate in research and development[187].

Financial Position and Borrowings - The company's short-term borrowings increased to RMB 734 million as of December 31, 2023, compared to RMB 294 million in the same period last year, while long-term borrowings decreased to RMB 90 million from RMB 100 million[3] - The company's current ratio decreased to 2.6 as of December 31, 2023, from 7.8 in the previous year, while the capital gearing ratio increased to 15.7% from 8.1%[10] - The company's total assets pledged as collateral increased to RMB 567.60 million as of December 31, 2023, from RMB 427.25 million in the previous year[18] - Trade receivables of RMB 221.285 million were pledged as collateral for bank financing as of December 31, 2023[108] Trade Receivables and Impairment - The company's trade receivables (net of impairment provisions) increased to RMB 1,526.53 million as of December 31, 2023, from RMB 773.16 million in the previous year, with impairment losses on trade receivables rising to RMB 59.79 million from RMB 16.82 million[17] - Trade receivables increased to RMB 1.527 billion in 2023 from RMB 773.158 million in 2022, with a credit period extended to 150 days for export and domestic sales customers[33] - Trade receivables increased to RMB 1,586,313,000 in 2023 from RMB 789,976,000 in 2022, with an impairment provision of RMB 59,788,000[77] Capital Commitments and Investments - The company's capital commitments for the acquisition of intangible assets and property, plant, and equipment amounted to RMB 681 million as of December 31, 2023, a significant increase from RMB 114 million in the previous year[19] - The company invested RMB 636 million in establishing new production workshops for panel and soft furniture, with 45.4% of the total funds allocated to this project[130] - The company's R&D and product design capabilities were enhanced with an investment of RMB 93 million, representing 6.6% of the total funds[130] - The company's factory in Longnan completed the main structure construction and is undergoing internal decoration and equipment procurement[132] - The company's factory in Ganzhou Nankang is in the land leveling phase, with progress in smart home R&D and patent applications[132] Share Issuance and Financing - The company successfully placed 306,910,000 new shares at HKD 0.13 per share, raising net proceeds of approximately HKD 39.3 million[14] - The company issued 306,908,000 new shares at HKD 0.135 per share, raising net proceeds of approximately HKD 40.8 million[15] - The company's global offering net proceeds amounted to approximately HKD 1,280.69 million after deducting underwriting commissions and other expenses[155] Employee Costs and Workforce - The company's total employee cost increased to RMB 300.7 million as of December 31, 2023, from RMB 283.6 million in the previous year, with a total of 3,028 employees[23] - Employee costs rose to RMB 300.697 million in 2023, compared to RMB 283.643 million in 2022[66] Inventory and Impairment - The company's inventory impairment provision decreased to RMB 0 million as of December 31, 2023, from RMB 28 million in the previous year[5] - Inventory decreased to RMB 877.757 million in 2023 from RMB 1.042 billion in 2022[39] - Total inventory decreased to RMB 877,757,000 in 2023 from RMB 1,070,210,000 in 2022, with no inventory impairment provision in 2023[76] Revenue and Profit - Revenue for the 2023 fiscal year was approximately RMB 3,641 million, an increase of 20.75% compared to RMB 3,015 million in 2022[52] - Net profit for the 2023 fiscal year was approximately RMB 203 million, a decrease of 39.30% compared to RMB 334 million in 2022, primarily due to the impact of trade tariffs between China and the US[52] - Gross profit for 2023 was RMB 483.313 million, down from RMB 544.774 million in 2022[53] - Revenue from the United States in 2023 was RMB 2,290.770 million, accounting for the largest share of external customer revenue[62] - Revenue increased by 20.7% to RMB 3.641 billion in 2023, while net profit decreased by 39.3% due to the impact of trade tariffs between China and the US[121] - Total revenue increased to RMB 3,640,712,000 in 2023 from RMB 3,015,191,000 in 2022, with panel furniture contributing RMB 3,434,603,000[80] - Revenue from major customers increased to RMB 2,791,097,000 in 2023 from RMB 2,520,923,000 in 2022, with Customer A contributing RMB 811,560,000[78] - Total sales revenue increased by 24.09% to RMB 3,607,946 thousand in 2023 compared to RMB 2,993,389 thousand in 2022[142] - Sales cost rose by 27.8% to RMB 3,157,399 thousand in 2023, primarily due to increased sales[153] - Material consumption costs increased by 37.3% to RMB 2,626,545 thousand in 2023[143] - Outsourcing processing fees surged by 77.7% to RMB 35,536 thousand in 2023[143] Cash Flow - Operating profit before working capital changes decreased by 21.3% to RMB 435.877 million in 2023 compared to RMB 553.745 million in 2022[30] - Net cash used in operating activities decreased by 39.4% to RMB 93.662 million in 2023 from RMB 154.536 million in 2022[30] - Net cash used in investing activities slightly decreased by 0.6% to RMB 1.345 billion in 2023 from RMB 1.353 billion in 2022[30] - Net cash from financing activities significantly increased by 421.6% to RMB 396.410 million in 2023 from a net cash used of RMB 123.244 million in 2022[30] - Cash and cash equivalents decreased to RMB 465.355 million as of December 31, 2023, from RMB 1.506 billion as of December 31, 2022[30] Acquisitions and Investments - The company completed the acquisition of 100% equity in Jiangxi Bashen for RMB 191 million, which primarily provides IT solutions to furniture manufacturers[24] - The company acquired Jiangxi Bashen Data Technology Co., Ltd. for RMB 191.737 million, contributing RMB 14.821 million in revenue and RMB 2.838 million in profit since the acquisition[117][114] - The company added assets worth approximately RMB 1,628,997,000 in 2023, a significant increase from RMB 453,210,000 in 2022[75] - The company's total assets increased to RMB 191.737 million in 2023, up from RMB 46.324 million in 2022[104] - The company's intangible assets increased to RMB 60.200 million in 2023[96] Tax and Earnings - Income tax expense decreased to RMB 46,338,000 in 2023 from RMB 55,523,000 in 2022, with current tax in China at RMB 36,695,000[83] - The company's two Chinese subsidiaries qualified as high-tech enterprises, enjoying a preferential corporate income tax rate of 15% for 2023[85] - Basic and diluted earnings per share decreased to RMB 0.0675 in 2023 from RMB 0.1091 in 2022, with net profit attributable to shareholders at RMB 207,103,000[88] - Basic and diluted earnings per share for 2023 were RMB 6.75 cents, down from RMB 10.91 cents in 2022[52] - The weighted average number of ordinary shares for calculating basic earnings per share was 3,069,090,000 for both 2023 and 2022[72] Market and Customer Trends - The company expects a recovery in furniture consumption in 2024 due to economic recovery and increased disposable income, with a positive impact on Chinese furniture exporters from the slowdown in interest rate hikes in developed economies[28] - The company's board furniture revenue increased by 21.7% in 2023, but gross margin declined due to price reductions in response to the appreciation of the US dollar against the RMB[122] - Soft furniture revenue decreased by 0.6% in FY2023, with a decline in gross margin due to product price reductions amid the appreciation of the USD against the RMB[123] - Sports and custom furniture revenue was RMB 96 million in FY2023, a decrease of 2.3% compared to FY2022, with gross margin also declining due to price reductions[123] - US sales accounted for 62.9% of total revenue in FY2023, increasing by 24.4% compared to FY2022, driven by higher order volumes[124] - Total revenue in FY2023 was RMB 3.64 billion, a 20.7% increase from FY2022, with significant improvements in performance due to increased product upgrades and R&D investments[124] - The company's ODM product sales accounted for over 80% of total sales in FY2023, maintaining a high proportion for multiple years[134] - Revenue from the top five customers increased by 11.4% in FY2023, accounting for 77.1% of total revenue, down from 83.6% in FY2022[141] - ODM product sales accounted for 83.5% of total furniture product revenue in 2023, maintaining a share above 80% for multiple years[151] Research and Development - Research and development costs increased significantly to RMB 152.602 million in 2023, up from RMB 57.318 million in 2022[66] - The company aims to expand international large retail chain customers and strengthen R&D innovation for long-term growth[158] Exchange Gains and Losses - Exchange gains decreased to RMB 32.071 million in 2023 from RMB 80.620 million in 2022[50] Dividends and Shareholder Returns - The company did not recommend paying a final dividend for the 2023 fiscal year[52] Asset Sales and Gains - The company sold assets with a net book value of RMB 19.563 million, resulting in a net gain of RMB 12.706 million[89] Trade Payables and Credit Terms - The company's trade payables increased to RMB 263.071 million in 2023, up from RMB 188.720 million in 2022[109] - The company's credit terms with customers generally range from 30 to 150 days, compared to 30 to 90 days in 2022[106] New Customers and Market Expansion - The company added two new customers, Baoyi International Trading Co., Ltd. and Hong Kong Ruichangli International Trading Co., Ltd., in 2023[120] Share Trading and Suspension - The company's shares were suspended from trading on the Hong Kong Stock Exchange starting April 2, 2024, and resumed trading on April 23, 2024[170] Corporate Structure and Tax Rates - The company's non-current assets are all located in China as of December 31, 2023[47] - The company's Chinese subsidiaries are subject to a corporate income tax rate of 25%, with a preferential rate of 15% for those located in the Western Development region[68][69] Product Design and Brand Building - The company plans to enhance product design and brand building to meet evolving consumer demands[146] Securities Transactions - The company did not purchase, redeem, or sell any of its listed securities during the 2023 fiscal year[159]

1月27日晚间，汇森家居发布公告，董事会建议对公司英文名称进行更改，由“Huisen Household International Group Limited”更改为“Huisen Shares Group Limited”。同时，中文双重外文名称也将由“汇森家居国际集团有限公司”更改为“汇森股份集团有限公司”。 这一提议的实施，需在即将召开的股东特别大会上通过特别决议案。并且，还需得到开曼群岛公司注册处处长的批准，通过发出更改名称注册证书才能正式生效。 ...

Financial Performance - The company's revenue for the six months ended June 30, 2023, was RMB 1.48 billion, a decrease of 24.5% compared to RMB 1.96 billion in the same period of 2022[2][9]. - Net profit for the same period was RMB 160 million, down 46.0% from the previous year's net profit[2]. - Revenue from panel furniture decreased from approximately RMB 1.85 billion to about RMB 1.41 billion, a decline of 24.2% due to reduced demand in overseas markets[3]. - The company's top five customers accounted for 84.7% of total revenue, with a total revenue of RMB 1.25 billion, down 25.5% year-on-year[5]. - Revenue from soft furniture, primarily sofas, decreased by approximately 29.6% due to reduced demand from the slowing real estate market in Europe and the United States[51]. - Revenue from sports furniture, including table tennis and billiard tables, was RMB 38.6 million, down 28.5% compared to the same period in 2022[52]. - Gross profit for the same period was RMB 195,906 thousand, down 52.0% from RMB 407,671 thousand in the previous year[154]. - Profit before tax was RMB 183,716 thousand, a decline of 47.5% from RMB 349,121 thousand in the prior year[154]. - The net profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 161,328, down from RMB 298,008 in the same period last year[70]. - Basic and diluted earnings per share decreased to RMB 5.3 from RMB 9.7 year-on-year[70]. Cash Flow and Financial Position - The company's cash flow from operating activities showed a net outflow of RMB 218.9 million, a decrease of 133.3% compared to the previous year[19]. - The company's short-term borrowings were approximately RMB 316.3 million as of June 30, 2023, an increase from RMB 293.8 million at the end of 2022[20]. - The current ratio as of June 30, 2023, was 5.05, down from 7.8 as of December 31, 2022[59]. - The capital debt ratio was approximately 7.4% as of June 30, 2023, compared to 8.1% as of December 31, 2022[59]. - The company's cash and cash equivalents decreased to RMB 924,584 thousand from RMB 1,505,808 thousand, a decline of about 38.5%[177]. - The trade receivables rose significantly to RMB 1,310,628 thousand from RMB 773,158 thousand, an increase of approximately 69%[177]. - Current liabilities increased to RMB 680,178 thousand from RMB 549,262 thousand, reflecting a rise of approximately 24%[177]. - The net asset value decreased from RMB 3,707,665 thousand to RMB 2,755,906 thousand, a decline of about 26%[177]. - Cash used in operating activities was RMB 218,879 thousand, a significant decline compared to cash generated of RMB 657,734 thousand in the previous year[182]. - Cash flow from investing activities showed a net outflow of RMB 332,893 thousand, compared to RMB 917,863 thousand in the prior period, indicating increased investment activity[182]. Operational Highlights - Revenue from the ODM segment was RMB 1.22 billion, representing 83.2% of total revenue, while OEM revenue was RMB 248 million, accounting for 16.8%[12]. - The group's sales cost decreased by 17.3% from approximately RMB 1.56 billion in the first half of 2022 to approximately RMB 1.29 billion in the first half of 2023, primarily due to a reduction in furniture product sales[27]. - The company aims to continuously expand markets outside the United States and strengthen ODM capabilities to enhance core competitiveness and market share[67]. - The group expects a stable real estate market and a rebound in the furniture market in the second half of 2023, benefiting from the end of the interest rate hike cycle in developed countries[83]. - The group continues to strengthen its original design manufacturing capabilities amid a challenging market environment[44]. Investments and Acquisitions - The company is in the process of acquiring 100% equity of Jiangxi Bashen for RMB 160 million, with a payment of RMB 57.3 million made as of June 30, 2023[23]. - The group has agreed to acquire 100% equity of Jiangxi Bashen Data Technology Co., Ltd. for RMB 160 million[41]. - The company incurred capital expenditures of RMB 335,434,000 on property, plant, and equipment during the reporting period, compared to RMB 115,422,000 in the same period last year[79]. - The group has no significant investments or acquisitions planned that would constitute more than 5% of total assets[109]. Employee and Operational Costs - The group has a total of 3,001 employees as of June 30, 2023, with total employee costs approximately RMB 142.4 million, a slight decrease from RMB 145.4 million in the same period of 2022[107]. - The company reported a decrease in distribution and selling expenses to RMB 29,949 thousand from RMB 40,519 thousand, a reduction of 26.0%[154]. - Administrative expenses decreased to RMB 63,349 thousand from RMB 75,140 thousand, reflecting a 15.7% reduction[154]. Shareholder and Equity Information - As of June 30, 2023, the major shareholder, Chun Pak Limited, holds 2,045,750,000 shares, representing 66.65% of the issued shares[127]. - The total equity attributable to owners of the company increased to RMB 5,210,334 thousand from RMB 5,049,006 thousand, representing a growth of approximately 3.19%[178]. - The total number of share options granted under the company's plans during the reporting period was 85,163,700, representing 7% of the weighted average number of shares issued[158]. Legal and Regulatory Matters - The group is actively seeking legal measures to oppose a liquidation petition amounting to HKD 7.5 million filed against it[102]. - The company maintained a public float of at least 25% as required by listing rules[161].

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。 Huisen Household International Group Limited 匯森家居國際集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2127） 有關本公司截至2022年12月31日止年度年度報告的補充公告 茲提述匯森家居國際集團有限公司（「本公司」）於2023年4月27日刊發的截至2022 年12月31日止年度的年度報告（「2022年年報」）。除另有界定者外，本公告所用詞 彙與2022年年報所界定者具有相同涵義。 除2022年年報所載董事會報告「購股權計劃」一節及綜合財務報表附註41所披露 者外，本公司謹根據上市規則第17.07及17.09條向本公司股東及潛在投資者提供 以下有關本公司購股權計劃的額外資料。 董事會報告「購股權計劃」一節應列示如下： 購股權計劃 ...

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。 Huisen Household International Group Limited 匯 森 家 居 國 際 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2127） 截至2023年6月30日止六個月 的中期業績公告 財務摘要 • 本集團於截至2023年6月30日止六個月的收益為約人民幣14.8億元，較截至2022年 6月30日止六個月的約人民幣19.6億元減少約24.5%。 • 截至2023年6月30日止六個月的溢利約為人民幣161.0百萬元，較截至2022年6月30 日止六個月的約人民幣298.0百萬元減少約46.0%。 • 截至2023年6月30日止六個月本公司每股股份（「股份」）的基本及攤薄盈利為人民幣 0.05元，而截至2022年6月30日止六個月為人民幣0.10元。 ...