Zoy Home Furnishing Co Ltd

Zhongyuan Home announced after market close on September 24 that its wholly-owned overseas subsidiary EBELLO HOME INC has recently received tax refunds from US Customs and Border Protection in batches, totaling 1.6952 million US dollars in returned tariffs and interest, equivalent to approximately 11.4404 million yuan, representing 40.49% of the absolute value of the company's most recent audited net profit attributable to the parent. The announcement shows that the tariff portion of this refund is 1.6239 million US dollars and the interest portion is 71,200 US dollars. The company stated that the above taxes have been recognized in current profit or loss and do not involve adjustments to prior years' profit or loss, but the figures are unaudited, and the specific accounting treatment and impact amount are subject to the annual audit confirmation. This refund stems from the US Supreme Court's February 2026 ruling that the reciprocal tariffs imposed by the US government under the International Emergency Economic Powers Act lacked statutory authorization, rendering the relevant tariff measures void from the outset and requiring refunds of collected tariffs to importers. US Customs and Border Protection has officially initiated the refund process. Zhongyuan Home is mainly engaged in the research, development, design, production and sales of sofas and other furniture products. In the first half of 2026, it achieved operating revenue of 1.011 billion yuan, a year-on-year increase of 39.70%, and net profit attributable to the parent of 3.3489 million yuan, turning losses into profits. Revenue from overseas brand retail business accounted for 66.27% of main business revenue.

Zhongyuan Home Furnishings disclosed its 2026 semi-annual report on August 29. In the first half, it achieved total operating revenue of 1.011 billion yuan, up 39.70 percent year on year. Net profit attributable to the parent company was 3.3489 million yuan, turning from a loss to a profit compared with the same period last year. Net profit after deducting non-recurring items was a loss of 6.3341 million yuan, compared with a loss of 14.6026 million yuan in the same period last year. The company plans to distribute a cash dividend of 0.49 yuan, tax included, for every 10 shares to all shareholders. During the reporting period, net cash flow from operating activities was 4.3351 million yuan, down 82.02 percent year on year. Net cash flow from financing activities was 31.9209 million yuan, and net cash flow from investing activities was negative 22.2071 million yuan. As of the end of the first half, the company's inventory book value was 372 million yuan, accounting for 72.89 percent of net assets, an increase of 145 million yuan from the end of last year.

Zhongyuan Home Furnishings disclosed an earnings forecast, expecting net profit attributable to shareholders of the parent company of 3.1 million yuan to 4.6 million yuan in the first half of 2026, compared with a loss of 9.5418 million yuan in the same period last year, achieving a turnaround. Deducted non-recurring net loss is expected to be 4.6 million yuan to 6.8 million yuan, compared with a loss of 14.6026 million yuan a year earlier. The company said that during the period, the scale of its overseas brand retail business grew steadily, overall operational efficiency improved significantly, and profitability continued to improve. However, foreign exchange rate fluctuations led to substantial exchange losses, and financial expenses rose year-on-year, squeezing profit margins, resulting in a small overall profit for the period.