Financial Performance - For the fiscal year 2021, Huisen Group achieved revenue of RMB 5.14 billion, representing a growth of approximately 31.9% compared to the fiscal year 2020[15]. - The net profit for the fiscal year 2021 exceeded RMB 800 million, marking an increase of about 64.2% year-over-year[15]. - Sales from new products launched in the fiscal year 2021 reached approximately RMB 950 million, accounting for 18.5% of total revenue[15]. - Revenue from the United States accounted for approximately 67.3% of total sales, making it the largest market for the company[15]. - Revenue growth from Singapore, mainland China, Malaysia, Vietnam, and Canada was approximately 34.9%, 13.8%, 33.4%, 44.7%, and 74.2% respectively[16]. - The group's revenue for the fiscal year 2021 was approximately RMB 5,139 million, representing a year-on-year increase of about 31.9% from RMB 3,896 million in 2020[30]. - Net profit increased by approximately 64.2% compared to the fiscal year 2020, primarily due to rising average selling prices and overall sales growth, which improved the overall gross margin[30]. - The total revenue for the fiscal year 2021 was RMB 5,139,157 thousand, a 31.9% increase compared to RMB 3,895,548 thousand in the fiscal year 2020[34]. - Sales in the U.S. accounted for 67.3% of total revenue in fiscal year 2021, with a year-on-year growth of approximately 32.3%[37]. - The five largest customers contributed a total revenue of RMB 4,461,130 thousand in fiscal year 2021, which is about 86.8% of total revenue, reflecting a growth of approximately 33.4% compared to the previous year[40]. Product and Market Development - ODM product sales accounted for over 82% of the group's revenue in the fiscal year 2021, up from approximately 80% in the previous year, marking four consecutive years of growth in this segment[27]. - The revenue from panel furniture increased by approximately 33.9% in the fiscal year 2021, reaching RMB 4,829,553 thousand, driven by significant demand growth in the European and American markets[32]. - The revenue from upholstered furniture was approximately RMB 155,134 thousand, representing a growth of about 19.4% in the fiscal year 2021, primarily due to increased customer demand[33]. - The company anticipates continued growth in furniture consumption driven by rising vaccination rates and economic development in various countries, particularly in developed regions like Europe, the US, Japan, and South Korea[71]. - The company plans to strengthen management and expand its international retail customer base in the fiscal year 2022, focusing on its core competitive advantages[72]. Operational Efficiency and Investments - The group ceased production of outdoor leisure furniture in the fiscal year 2021, reallocating resources to increase the efficiency of production facilities for panel and soft furniture[23]. - The group plans to continue enhancing production efficiency by upgrading machinery and equipment in existing factories while accelerating the construction of the new Longnan factory[23]. - Huisen Group plans to enhance research and development and production capabilities as part of its investment projects[17]. - The group established a strategic cooperation agreement with Jiangxi University of Science and Technology to enhance research and development in smart furniture, including the establishment of a "Smart Furniture Research Institute"[28]. - The group acquired land use rights for approximately 233,736 square meters in Longnan City for the construction of a new manufacturing plant focused on panel and soft furniture production, at a cost of RMB 20,802,600[28]. Financial Management and Liquidity - The net cash generated from operating activities was RMB 875.613 million, representing a 34.5% increase from RMB 650.890 million in 2020[52]. - As of December 31, 2021, the bank balance and cash amounted to approximately RMB 3,137 million, up from RMB 2,648 million in 2020[52]. - The company's short-term borrowings were approximately RMB 366 million as of December 31, 2021, compared to RMB 323 million in 2020[54]. - The trade receivables (net of impairment) increased to approximately RMB 1,291.17 million as of December 31, 2021, from RMB 1,186.09 million in 2020[58]. - The company's liquidity ratio was approximately 5.5 as of December 31, 2021, compared to 5.1 in 2020[54]. - The capital debt ratio was approximately 10.5% as of December 31, 2021, down from 14.6% in 2020[54]. Corporate Governance - The board does not recommend a final dividend for the fiscal year 2021, compared to a final dividend of HKD 0.079 per share (approximately RMB 0.07) for the fiscal year 2020[67]. - The board has complied with listing rules by appointing at least three independent non-executive directors, constituting at least one-third of the board[95]. - The company emphasizes the importance of corporate governance and has established various committees to oversee different aspects of governance[123]. - The company has adopted a board diversity policy that emphasizes the importance of diverse perspectives in maintaining competitive advantage[127]. - The independent non-executive directors ensure high standards of regulatory reporting and balance board power for effective independent judgment[102]. Future Outlook and Strategic Plans - The company is preparing for the fiscal year 2022 with expectations of continued growth in consumer demand for furniture due to increased disposable income and vaccination rates[17]. - Future outlook includes potential market expansion and the introduction of new products and technologies to meet consumer demands[176]. - The management team is actively involved in monitoring market trends and adjusting strategies accordingly to maintain competitive advantage[176]. - The leadership team is dedicated to fostering innovation and improving product offerings to drive future growth[176]. Use of Proceeds from Global Offering - The net proceeds from the global offering amounted to approximately HKD 1,280.69 million after deducting underwriting commissions and other expenses[197]. - As of December 31, 2021, the actual amount utilized from the net proceeds was HKD 246 million, leaving HKD 1,156 million unutilized[197]. - 45.4% of the net proceeds (approximately HKD 636 million) is allocated for establishing a new production workshop for panel furniture and soft furniture[197]. - The company plans to enhance its product design and R&D capabilities with an allocation of HKD 93 million, which is 6.6% of the net proceeds[197]. - General working capital and other corporate purposes received an allocation of HKD 140 million, representing 10.0% of the net proceeds[197].

Financial Performance - For the first half of 2021, Huisen Group reported revenue of approximately RMB 2.4 billion, representing a year-on-year growth of about 47.3%[12]. - The net profit for the same period was approximately RMB 420.8 million, reflecting a year-on-year increase of about 75.9%[12]. - Total revenue for the first half of 2021 was RMB 2.4 billion, up 47.3% from RMB 1.63 billion in the same period of 2020[17]. - Revenue for the six months ended June 30, 2021, was RMB 2,402,415 thousand, representing a 47.2% increase from RMB 1,630,742 thousand in the same period of 2020[63]. - Gross profit for the same period was RMB 630,489 thousand, up 72.0% from RMB 366,288 thousand year-over-year[63]. - The operating profit before income tax for the six months ended June 30, 2021, was RMB 488,585 thousand, compared to RMB 282,034 thousand for the same period in 2020, reflecting a 73.2% increase[108]. - Basic and diluted earnings per share increased to RMB 0.14 from RMB 0.11, reflecting a 27.3% growth[63]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2021, was RMB 420,772,000, up from RMB 239,195,000 in the same period of 2020, indicating a growth of 76%[116]. Revenue Breakdown - Revenue from panel furniture accounted for 94.0% of total revenue, with a significant increase of 50.5% compared to the same period in 2020[13]. - Panel furniture revenue increased from RMB 1.5 billion to approximately RMB 2.3 billion, a rise of about 50.5%[14]. - Upholstered furniture revenue grew by approximately 27.3% compared to the same period in 2020[15]. - Revenue from the furniture segment was RMB 2,257,760 thousand, a significant increase from RMB 1,499,899 thousand in the previous year[105]. - Revenue contribution from original design manufacturing products increased to approximately 82.5%, up from 79.0% in the previous year[10]. - Sales to the US accounted for 66.8% of total revenue, despite a 39.5% increase in sales compared to 2020, indicating a decrease in market share from 70.5%[17]. - Revenue from the United States was RMB 1,603,946 thousand, up 39.4% from RMB 1,150,142 thousand in the previous year[102]. Cost and Expenses - Total sales costs rose by 40.1% to approximately RMB 1.77 billion, consistent with revenue growth trends[21]. - The cost of goods sold for the six months ended June 30, 2021, was RMB 1,771,926 thousand, an increase from RMB 1,264,454 thousand in 2020[106]. - The company reported a tax expense of RMB 67,813 thousand for the six months ended June 30, 2021, compared to RMB 42,839 thousand for the same period in 2020[106]. - The company’s interest expenses on bank and other borrowings decreased to RMB 19,012 thousand from RMB 21,613 thousand in the previous year[105]. Cash Flow and Liquidity - Net cash generated from operating activities decreased by 23.9% to RMB 399,390,000, down from RMB 524,696,000 year-on-year[24]. - Cash and cash equivalents rose significantly to RMB 3,060,225 thousand from RMB 2,647,848 thousand, marking a 15.5% increase[66]. - The company’s financing activities generated a net cash inflow of RMB 71,560 thousand, contrasting with a net outflow of RMB 63,622 thousand in the same period last year[72]. - The company raised RMB 101,249 thousand through the exercise of over-allotment options related to its IPO, contributing to financing activities[72]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 5,467,185 thousand, compared to RMB 4,983,659 thousand at the end of 2020, indicating a 9.7% increase[66]. - Current assets increased to RMB 4,514,673 thousand from RMB 4,036,661 thousand, a rise of 11.8%[66]. - Total liabilities decreased to RMB 1,221,088 thousand from RMB 1,043,310 thousand, a reduction of 17.1%[67]. - The company reported a significant increase in inventory, which rose to RMB 240,240 thousand from RMB 150,361 thousand, a 59.8% increase[66]. - Trade receivables (net of impairment) amounted to approximately RMB 1.2 billion as of June 30, 2021, with an impairment provision of approximately RMB 11.8 million during the reporting period[27]. Strategic Initiatives - The company ceased production of outdoor leisure equipment to optimize production space for panel and soft furniture[10]. - Huisen Group has established a strategic cooperation agreement with Jiangxi University of Science and Technology to enhance research and development in smart furniture[11]. - The company has entered into a land use rights agreement for RMB 20.8 million to acquire land for a new manufacturing facility focused on panel and soft furniture[11]. - The group plans to continue expanding its market presence outside the U.S. and enhance its original design manufacturing capabilities in response to potential risks in the real estate market[36]. - The group aims to invest in smart home product development to achieve better growth and expand its business coverage[37]. Corporate Governance - The board did not recommend any interim dividend for the six months ended June 30, 2021[38]. - The company has established an audit committee consisting of three independent non-executive directors, with Mr. Sun Duo Wei as the chairman[52]. - The company's auditor, Hong Kong Lixin Dehao CPA Limited, reviewed the interim financial statements for the six months ending June 30, 2021, confirming compliance with applicable accounting standards and regulations[53]. - The company has adopted a share option scheme effective from December 2, 2020, aimed at rewarding selected participants contributing to the group's success[55]. - The total number of shares available for issuance under the share option scheme is 300,000,000 shares, representing 9.77% of the company's issued share capital[56]. Market Conditions - The demand for furniture products surged due to the recovery of the real estate market in Europe and the United States, as well as the growth of the "stay-at-home economy"[8]. - The company plans to continue leveraging its operational efficiencies and market expansion strategies to drive future growth[99].

t 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 HSEN GROUP 年 報 2020 layout [For 目錄 公司資料 02 主席致辭 04 管理層討論及分析 08 企業管治報告書 18 董事及高級管理層簡歷 34 董事會報告 38 獨立核數師報告 49 only] 綜合損益及其他全面收入表 54 綜合財務狀況表 55 綜合權益變動表 57 綜合現金流量表 58 綜合財務報表附註 60 四年財務概要 122 匯森家居國際集團有限公司 薪酬委員會 孫多偉先生（主席） 劉正揚先生 蘇鑫林先生 企業管治委員會 風險管理委員會 曾明先生（主席） 曾明蘭女士 高建華先生 02 公司資料 執行董事 曾明先生（主席） 曾明蘭女士 吳潤陸先生 蘇鑫林先生 獨立非執行董事 孫多偉先生 劉正揚先生 高建華先生 審核委員會 孫多偉先生（主席） 劉正揚先生 高建華先生 提名委員會 劉正揚先生（主席） 孫多偉先生 曾明先生 孫多偉先生（主席） 劉正揚先 ...