New Stock Update | Moganshan Home Delivery Form to Hong Kong Stock Exchange, serving as China's third largest green artificial board service provider.

According to the disclosure on January 16th by the Hong Kong Stock Exchange, Yunfeng Moganshan Ecological Home Furnishings Co., Ltd. (Moganshan Home Furnishings), has submitted its application for listing on the Main Board of the Hong Kong Stock Exchange, with CITIC SEC as its exclusive sponsor. According to industry data from Zhishi Consultancy, based on the revenue of the year 2024, the company is the third largest green engineered wood service provider in China, as well as one of the top fifteen green customized home furnishing providers in China. Company Profile The prospectus shows that Moganshan Home Furnishings is a green home furnishing comprehensive service provider, as well as a pioneer and advocate of the concept of "green and healthy living spaces". Founded at the foot of Moganshan in 1995, after more than thirty years of dedication and accumulation, the company has established "Moganshan" as a nationally renowned brand in China, and has gained widespread recognition and long-term trust from consumers with consistent focus on health, safety, and excellent quality. Starting with engineered wood boards, the company continuously expands its product and service boundaries, gradually building a diversified product system covering the core needs of green homes, establishing the company's market position as a one-stop green home furnishing comprehensive service provider. In the previous reporting period, Moganshan Home Furnishings focused on providing green engineered wood and customized home furnishing products and services. According to Zhishi Consultancy, based on the revenue of the year 2024, the company is the third largest green engineered wood service provider in China, as well as one of the top fifteen green customized home furnishing providers in China. The company has been actively participating in various national research and development projects since the 12th Five-Year Plan in China, focusing on key technologies to promote industrial upgrading and transformation, and conducting relevant application demonstrations. In addition, the company has obtained national honors and certifications such as National Intellectual Property Demonstration Enterprise, National Forestry Leading Enterprise, National Green Factory, National Green Supply Chain Demonstration Enterprise, 5G fully connected factory, among others. Moganshan Home Furnishings has been actively participating in the development and upgrade of industry standards for green home furnishing products. In the process of creating green home furnishing products, the company mainly uses wood materials from sustainable economic forests as raw materials, and relies on economies of scale formed by large-scale procurement to ensure the health and safety of products through a stable commercial return mechanism. This also supports reforestation and sustainable land use, motivating the continuous cultivation of forestry resources. At the same time, the company actively participates in various tree planting projects to promote ecological restoration and green circulation. In addition to these efforts in the upstream, the company also invests in research and development to promote continuous technological innovation, effectively reducing the formaldehyde emission levels of products. Currently, all products of the company have been upgraded to the HENF formaldehyde emission standard. Additionally, the company has been involved in drafting over 75 national and industry standards, including GB 18580-2025, to promote the systematic upgrade of green home furnishing product standards. The company is committed to integrating sustainable development into its daily operations to fulfill corporate social responsibility and promote the co-creation of social value. In 2023, the company released the "Dual Carbon Strategy Action Guide," identifying carbon reduction pathways and committing to achieving national key carbon reduction targets ahead of schedule, aiming to peak carbon emissions by 2028 and achieve carbon neutrality within the core operational boundaries by 2050. The company strictly implements this guide, releasing annual reports and developing zero-carbon engineered wood products. According to Zhishi Consultancy, the company was one of the first in the industry to propose a Dual Carbon Strategy and develop zero-carbon engineered wood products. The company has established an extensive sales and distribution network. As of September 30, 2025, Moganshan Home Furnishings has 875 dealers across all provinces in China and 45 overseas countries and regions. To further seize opportunities in overseas emerging markets, the company is actively implementing a comprehensive overseas business expansion plan, focusing on branding going international, aiming to present the brand to a wider range of global consumers, enhance the company's ecological position in the global industry value chain, and ultimately become a global green home furnishing comprehensive service provider. Financial Information Revenue In fiscal year 2023, fiscal year 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company achieved revenues of approximately RMB 3.394 billion, RMB 3.456 billion, RMB 2.549 billion, and RMB 2.519 billion, respectively. Gross Profit and Gross Profit Margin In fiscal year 2023, fiscal year 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded gross profits of approximately RMB 754 million, RMB 775 million, RMB 558 million, and RMB 646 million, respectively, with corresponding gross profit margins of 22.2%, 22.4%, 21.9%, and 25.7%. Net Profit In fiscal year 2023, fiscal year 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded net profits of approximately RMB 320 million, RMB 321 million, RMB 244 million, and RMB 280 million, respectively. Industry Overview Green engineered wood typically refers to sheet products that meet requirements for health, environmental protection, and sustainability in terms of raw material selection, manufacturing processes, and product performance. By using formaldehyde-free or low-formaldehyde adhesives, bio-based or recycled materials, and energy-saving and emission-reducing manufacturing processes, green engineered wood has significant advantages in reducing harmful substance emissions, improving indoor air quality, and enhancing resource utilization efficiency. With increasingly stringent environmental standards and a growing awareness of health and aesthetics among consumers, traditional engineered wood is rapidly upgrading towards green engineered wood products. The wider adoption of green engineered wood is expected to further drive the decoration and construction materials industry towards lower carbon emissions, circular utilization, and higher product quality, providing necessary support for green buildings and green home systems. The market size of China's green engineered wood sector increased from RMB 230.7 billion in 2019 to RMB 310.6 billion in 2024, with a compound annual growth rate of 6.1%. This market is expected to continue growing at a compound annual rate of 5.7% and reach RMB 409 billion by 2029. Green customized home furnishing refers to customized products primarily made of green engineered wood, where the concepts of energy saving, emission reduction, and sustainable development are integrated throughout the design, production, and delivery process. These products not only meet the functional and aesthetic requirements of living spaces, but also emphasize environmental performance and low-carbon manufacturing, representing an important development direction in the broader green home industry. Customized home furnishing, with its inherent advantages in material selection, space compatibility, and production modes, has favorable conditions for early green transformation. On one hand, custom home furnishing companies typically have strong control over raw material procurement and can prioritize the use of low-formaldehyde panels, eco-friendly adhesives, and other green materials to ensure product health and safety from the source. On the other hand, a flexible and scalable manufacturing model lays a solid foundation for integrating green manufacturing practices, helping improve energy efficiency and reduce waste generation. With the continuous advancement of China's "Dual Carbon" policy and the increasing awareness of consumer health and environmental protection, the focus of customized home furnishings is shifting from personalized design and spatial efficiency to environmental performance, green attributes, and sustainability. Therefore, green customized home furnishing is increasingly becoming a major development trend within the industry. The market size of China's green customized home furnishing sector increased from RMB 195.1 billion in 2019 to RMB 322 billion in 2024, with a compound annual growth rate of 10.5%. This market is expected to further expand at a compound annual growth rate of 9.4% and reach RMB 504.1 billion by 2029. Board of Directors Information The board of directors will consist of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors. Equity Structure As of the last practicable date, Ascendia Emerald Limited holds 53.87% of the company. Ascendia Emerald Limited is held by (i) Ascendia Sappire Limited (a holding tool fully owned by Mr. Xia) holding 0.38%; (ii) Ascendia Ruby Limited (a holding tool fully owned by Ms. Xia) holding 0.62%; and (iii) Ascendia Pearl Limited holding 99.0%, which is fully owned by Ascendia Amber Limited, and Ascendia Amber Limited is fully owned by Xia's family trust. Xia's family trust is a fully empowered trust established by Mr. Xia as the sole settlor and protector in the Cayman Islands, with Ascendia Ruby Limited as the beneficiary. The trustee of Xia's family trust is Maples Trustee Services (Cayman) Limited. Therefore, according to the Securities and Futures Ordinance, Mr. Xia, Xia's family trust, Ascendia Amber Limited, and Ascendia Pearl Limited are each considered to have an interest in the 53.87% shares held by Ascendia Emerald Limited. As of the last practicable date, Yufeng Onyx Limited is fully owned by Mr. Gu Shuixiang. According to the Securities and Futures Ordinance, Mr. Gu Shuixiang is considered to have an interest in the shares held by Yufeng Onyx Limited. Intermediary Team Exclusive Sponsor: CITIC SEC (Hong Kong) Limited Company Legal Counsel: Regarding Hong Kong laws and US laws: Paul Hastings (Hong Kong) Law Firm; Regarding Chinese laws: Guohao Law Firm (Hangzhou); Regarding Cayman Islands laws: Maples and Calder Law Firm (Hong Kong) Limited Exclusive Sponsor Legal Counsel: Regarding Hong Kong laws: Deacons Law Firm; Regarding Chinese laws: JT&N Law Firm Auditors and Reporting Accountants: KPMG LLP Industry Consultant: Zhishi Industry Consulting Co., Ltd. Compliance Consultant: ChoYiu Capital Limited Property Valuer: Colliers International Valuation and Consulting Services (Shanghai) Co., Ltd.