Samson : Financial Reporting Document

2022Interim Report

Contents

Corporate Profile

Corporate Profile

Corporate Information

Financial Highlights

Management Discussion and Analysis

Other Information

Independent Review Report

Interim Condensed Consolidated Statement of   Profit or Loss

Interim Condensed Consolidated Statement of   Comprehensive Income

Interim Condensed Consolidated Statement of   Financial Position

Interim Condensed Consolidated Statement of   Changes in Equity

Interim Condensed Consolidated Statement of   Cash Flows

Notes to Interim Condensed Consolidated   Financial Information

1. Since its establishment in 1995, Samson Group, including Samson Holding Ltd. (the "Company") and
2. its subsidiaries (the "Group" or "Samson"), has now become a fully vertically-integrated furniture company
3. and ranks as one of top 10 furniture wholesalers in
4. the United States of America (the "U.S."). We currently market a wide range of our furniture products through a

7 portfolio of brand names including Universal Furniture,

Legacy Classic Furniture, Legacy Classic Kids,

1. Craftmaster Furniture, Baker, Milling Road, McGuire, LacquerCraft Hospitality, Universal Furniture China and
2. Athome, and licensed with Paula Deen, Rachael Ray, Miranda Kerr, Nina Magon and Coastal Living in the
3. U.S..
   In May 2016, we have successfully acquired Grand
4. Manor Furniture Inc., a Lenoir North Carolina U.S. based manufacturer established in 1960s which specialises

in hospitality seating design and manufacturing. Its

1. major customers include but not limited to Marriott, Hilton, Grand Hyatt and Western hotel chains. In February 2017, we have successfully acquired Baker
2. Interiors Group, LTD. (formerly known as Kohler Interiors Group, LTD. ) and its subsidiaries (collectively referred to as "BIG"), which owns three global luxury
3. furniture brands, namely, "Baker", "Milling Road" and "McGuire", each with a history of leading design, quality and craftsmanship. BIG sells its products through showrooms in North America, England, and France, and furniture dealer locations across the U.S., Europe, Asia and the Middle East. BIG maintains relationships with interior designers who recommend the products to consumers worldwide.
   Our team of experienced executives, employees and sales force, comprising the U.S. market expertise, combining with Vietnam and the People's Republic of China (the "PRC" or "China") manufacturing know-how, creates a globally-integrated products and services logistics platform that brings forth effective means of business operations by which we strive to maximise ultimate benefits to our customers and shareholders.

Samson Holding Ltd. Interim Report 2022

1

Corporate Information

Executive Directors

Mr. Shan Huei KUO (Chairman)

Ms. Yi-MeiLIU (Deputy Chairman)

Mr. Mohamad AMINOZZAKERI

Non-Executive Director

Mr. Sheng Hsiung PAN

Independent Non-Executive Directors

Mr. Ming-Jian KUO

Mr. Siu Ki LAU

Mr. Sui-Yu WU

Audit Committee

Mr. Siu Ki LAU (Chairman)

Mr. Sheng Hsiung PAN

Mr. Sui-Yu WU

Remuneration Committee

Mr. Ming-Jian KUO (Chairman)

Mr. Sheng Hsiung PAN

Mr. Sui-Yu WU

Nomination Committee

Mr. Shan Huei KUO (Chairman)

Mr. Ming-Jian KUO

Mr. Sui-Yu WU

Company Secretary

Mr. Kwong Cho SHEUNG

Authorized Representatives

Ms. Yi-Mei LIU

Mr. Kwong Cho SHEUNG

Registered Office

Grand Pavilion

Hibiscus Way

802 West Bay Road

P.O. Box 31119, KY1-1205

Cayman Islands

Stock Code

The Stock Exchange of Hong Kong Limited: 531

Websites

http://www.samsonholding.com/

http://www.universalfurniture.com/

http://www.legacyclassic.com/

http://www.legacyclassickids.com/

http://www.cmfurniture.com/

http://www.lacquercrafthospitality.com/

https://www.bakerfurniture.com/

Principal Places of Business

Vietnam:

6th Road Tam Phuoc Industrial Zone,

Bien Hoa City, Dong Nai Province Vietnam

China:

China Timber Industry City Development Area

No. 2 Taicheng Road

Jia Shan County

Zhejiang Province

China, 314100

Unit 1007, 10th Floor, Haleson Building

1 Jubilee Street, Central,

Hong Kong

United States of America:

2575 Penny Road

High Point, NC 27265

U.S.A.

221 Craftmaster Road

Hiddenite, NC 28636

U.S.A.

1 Baker Way

Connelly Springs, NC 28612

U.S.A.

Auditor

Ernst & Young

Certified Public Accountants

Registered Public Interest Entity Auditor

Legal Adviser

TW Partners

Principal Bankers

CTBC Bank

UBP Bank

DBS Bank

Taishin International Bank

MEGA Bank

SINOPAC Bank

East West Bank

Share Registrars and Transfer Offices

Principal:

Royal Bank of Canada Trust Company (Cayman) Limited

4th Floor, Royal Bank House

24 Shedden Road, George Town

Grand Cayman KY1-1110

Cayman Islands

Hong Kong Branch:

Computershare Hong Kong Investor Services Limited

Shops 1712-16, 17/F

Hopewell Centre

183 Queen's Road East

Wanchai, Hong Kong

2 Samson Holding Ltd. Interim Report 2022

Financial Highlights

	Six months	Six months	Six months	Six months
	ended	ended	ended	ended
	30 June	30 June	30 June	30 June
	2022	2021	2022	2021
	US$'000	US$'000	HK$'000*	HK$'000*
Operating results
Revenue	278,995	237,342	2,176,161	1,851,268
Earnings before interest and tax	12,845	17,702	100,191	138,076
Profit for the period	8,473	14,353	66,089	111,953
Earnings per share attributable
to ordinary equity holders of the parent
(US/HK cent)	0.28	0.46	2.18	3.59
	As at	As at	As at	As at
	30 June	31 December	30 June	31 December
	2022	2021	2022	2021
	US$'000	US$'000	HK$'000*	HK$'000*
Financial position
Total assets	685,423	600,535	5,346,299	4,684,173
Net current assets	218,991	148,706	1,708,130	1,159,907
Shareholders' equity	317,894	323,624	2,479,573	2,524,267

• Exchange rate: US$1 to HK$7.8 (for reference only)

Revenue & profit/(loss) for the period

(US$ MN)

14.4

7.7

8.5

1.8

(16.6)279

228	237
	200
	172

2018-1H

2019-1H

2020-1H2021-1H2022-1H

Earnings/(loss) per share attributable to ordinary

equity holders of the parent

(US cent)

		0.46
0.25		0.28
	0.06	2020-1H
2018-1H	2019-1H	2021-1H2022-1H

(0.48)

Revenue

Profit/(loss) for the period

Samson Holding Ltd. Interim Report 2022

3

Management Discussion and Analysis

Business Review

Over the past decade, Samson has successfully transformed from an original equipment manufacturer to a leading furniture wholesaler with a strong brand-led business. Through our strategic acquisition of a luxury furnishing brand BIG in 2017, the Group has further enhanced the diversified brand portfolio covering mid to high-end markets. The Group has continued to expand production capacities by globalizing the supply chain from China to Vietnam, Bangladesh, Indonesia and the U.S.. Based on the effective strategies, Samson was able to record growing sales and margin for the six months ended 30 June 2022 (the "Period").

During the Period, as the effect of the COVID-19 was mitigated, the macroeconomy has recovered gradually from the pandemic. However, the bounce back in demand has stressed supply chains and caused inflation to rise. On demand front, the Federal Reserve Board ("FED") continued to follow tightened policy and has raised interest rate since March 2022, adding pressures to the market demand. Meanwhile, consumer price index has soared over the past year, leading to a tight grip on the U.S. economy outlook. On the supply side, as the logistic costs showed an upward trend resulting from an increased delivery expense, Samson has partnered with several shipping service providers to ensure container availability and cost reductions.

Despite the economy headwinds, the Company was able to capture the opportunity for further market penetration through its diverse product offerings and multi-distribution channels and recorded growth. Samson has been striving to expand by forming partnership with online retailers to enhance sales on e-commerce channel. For the traditional channel, High Point Market, the home furnishings trade show in the U.S. was postponed to June 2022, and the number of participants had increased comparing to last year, showing a stable demand for orders. Moreover, our mass merchant channels had been performing well throughout the Period, and it is expected to continue in the second half of 2022.

With a globalized supply chain, Samson has built up stronger production capabilities to cope with geopolitical instabilities and to improve cost controls. Samson's capacity across the Asia region including Vietnam and Bangladesh has enhanced through factory investment and acquisitions in the last three years. Samson is confident in continuing to improve manufacturing efficiency of its factories across Asia to further enhance the operation and management efficiency across the brands.

As Samson adopts a unique multi-brand strategy based on the successful transformation from a China-centric manufacturing base to a globally production base, it is able to leverage the synergies across diversified business lines to drive organic growth, with the business of BIG turning from operating loss to operating profit, and our business in casegoods, upholstery as well as hospitality recording double-digit growth in sales during the Period. In the future, Samson will focus on improving overall profitability based on higher cost efficiency and operating system optimization. The Group looks forward to unlocking the growth opportunities in the second half of 2022.

4 Samson Holding Ltd. Interim Report 2022