Merchant House International's financial update and strategic changes

Merchant House International (ASX:MHI) has announced its financial results for the half-year ending 30 September 2024. The company reported a net profit of $6.466 million, marking a significant improvement from a net loss of $5.446 million in the previous corresponding period. Key changes include the closure of its American Merchant Inc. textile factory in the USA and the sale of its stake in Tianjin Tianxing Kesheng Leather Products Company Limited.

Overview and future outlook for Merchant House International

Merchant House International (ASX:MHI) has redefined its business strategy by focusing on asset sales and winding up operations. The company's financial turnaround is primarily attributed to discontinued operations. Moving forward, MHI plans to delist from the ASX and distribute the net proceeds from its asset sales to shareholders. The sale of its 33.79% interest in Tianjin Tianxing Kesheng Leather Products Company for approximately A$8.3 million and the planned sale of the American Merchant Inc. factory assets are pivotal in this transition. The company maintains its commitment to ASX corporate governance practices even as it prepares to cease operations, with the financial report reviewed on a liquidation basis by BDO Audit Pty Ltd.

Executive insights on Merchant House International's strategic decisions

The company has undertaken significant operational changes during this period, including the sale of its stake in Tianjin Tianxing Kesheng Leather Products Company Limited and the closure of the American Merchant Inc. textile factory in the USA.