① Dragged down by overseas markets, Minhua Holdings' overall revenue grew negatively year on year. ② Since 2022, Huang Minjiao, the controlling shareholder of the company, has continued to increase his holdings. In the first half of 2023 alone, it increased its holdings by about 15 million shares.
Financial News Agency, November 15 (Reporter Ren Chaoyu) - Furniture leader Minhua Holdings (01999.HK) announced today its interim results for the six months ended September 30, 2023. The performance of the Chinese market is relatively good, and performance has increased. However, due to being dragged down by overseas markets, overall revenue increased negatively year over year.
According to financial data, Minhua Holdings' revenue for the first half of the year was about HK$8.938 billion, down about 3.8% from the previous year. Net profit attributable to equity owners of the company was approximately HK$1,136 million, an increase of approximately 4.0% over the previous year.
The company's main business revenue in the Chinese market was HK$6.05 billion, an increase of about 5.1% over the previous year. The local currency caliber of the RMB market increased by about 11.0%, and sofa sales increased by about 27.6%, from about 419,000 units to about 535,000 units.
In overseas markets, revenue from North America fell 20.5% year over year to HK$2,037 billion. Revenue in Europe and other overseas markets (excluding Home Group) declined by approximately 20.6% to HK$377 million. The Home Group's revenue rose approximately 6.7% year over year.
Minhua Holdings said that during the reporting period, the company did not charge customers any more shipping surcharges. Excluding the impact of shipping surcharges, the revenue in the North American market fell by about 5.4%.
(Source: Announcement)
According to a relevant research report released in May, demand for terminals in Europe and the US is still relatively weak, and it is expected that it is still in a period of adjustment. However, as the inventory level of overseas customers falls, export sales are expected to gradually recover.
The company said in the interim report that after more than a year of improving inflation, the North American market gradually removed high inventories and market demand began to return to normal.
According to the latest data released by the General Administration of Customs on November 7, the export value of furniture and its parts in October was 37.75 billion yuan, and the export value for January-October was 36.90 billion yuan. The cumulative decline in January-October compared to the same period last year was 2.5%.
Affected by factors such as the overall prosperity of the home furnishing industry, Minhua Holdings has underperformed in the capital market in recent years. The stock price has fallen by more than 50% in the past three years, and by about 17% in the past year.
However, Wind data shows that since 2022, Huang Minjiao, the controlling shareholder of the company, has continued to increase its holdings. The number of shares held has increased from 2.37 billion shares on March 22, 2022 to 2.42 billion shares on September 27, 2023.