Financial Performance - Total revenue for the year ending December 31, 2024, is reported at HKD 902.316 million, a decrease of 10.5% from HKD 1,008.101 million in the previous year[2]. - Gross profit for the same period is HKD 120.939 million, down 6.6% from HKD 129.565 million year-over-year[2]. - The net profit attributable to equity holders for the year is HKD 18.884 million, a decline of 14.5% compared to HKD 22.168 million in the previous year[2]. - Basic and diluted earnings per share decreased to HKD 2.36 from HKD 2.77, reflecting a 15.1% drop[2]. - The group's profit before tax for the year 2024 was HKD 18,884,000, down from HKD 22,168,000 in 2023, reflecting a decrease of about 14.5%[21]. - Basic earnings per share for 2024 were HKD 2.36, compared to HKD 2.77 in 2023, representing a decline of approximately 14.8%[21]. Expenses and Income - Administrative expenses decreased to HKD 63.295 million from HKD 71.023 million, a reduction of 10.9%[2]. - Other income decreased to HKD 1.332 million from HKD 2.295 million, a decline of 41.9%[2]. - Financial income increased to HKD 194 million from HKD 92 million, a growth of 110.9%[2]. - The group incurred a total expense of HKD 323,338,000 for distribution costs in 2024, compared to HKD 440,229,000 in 2023, indicating a reduction of about 26.6%[17]. - Financial costs increased by approximately 12.6%, totaling about HKD 35.375 million for the year ending December 31, 2024, compared to approximately HKD 31.417 million for the previous year[31]. Assets and Liabilities - Total assets increased to HKD 1,065,422,000 in 2024 from HKD 870,322,000 in 2023, representing a growth of approximately 22.4%[3]. - Total liabilities rose to HKD 845,386,000 in 2024 compared to HKD 669,170,000 in 2023, indicating an increase of about 26.3%[4]. - The company's cash and cash equivalents reached HKD 57,862,000 in 2024, up from HKD 42,391,000 in 2023, reflecting a growth of approximately 36.5%[3]. - The total equity attributable to the company's owners increased to HKD 220,036,000 in 2024 from HKD 201,152,000 in 2023, marking an increase of about 9.4%[3]. - The company's retained earnings grew to HKD 123,530,000 in 2024, compared to HKD 104,646,000 in 2023, which is an increase of approximately 18.0%[3]. - The company's total borrowings amounted to HKD 477,412,000 in 2024, up from HKD 437,992,000 in 2023, reflecting an increase of about 9.0%[4]. - The group's asset-liability ratio as of December 31, 2024, is approximately 66.3%, slightly down from 66.5% as of December 31, 2023[43]. - The group's current ratio as of December 31, 2024, is approximately 1.1, compared to 1.2 as of December 31, 2023[43]. Market Outlook and Strategy - The company plans to focus on market expansion and new product development in the upcoming fiscal year[2]. - Future guidance indicates a cautious outlook due to market conditions and competition[2]. - The group anticipates that 2025 will be a challenging year for winning new tenders in the existing renovation industry in Hong Kong due to ongoing economic recovery and growth constraints[36]. - The group plans to invest necessary resources to develop its core business and explore potential opportunities while maintaining cost control and strategic flexibility[37]. - The board remains cautiously optimistic about the long-term prospects of the group's core business and will closely monitor operational cash management and potential product development opportunities[38]. Shareholder Information - The proposed final dividend for the year ending December 31, 2024, is HKD 0.0167 per share, totaling HKD 13,360,000, pending approval at the upcoming annual general meeting[23]. - The board has proposed a final dividend of HKD 0.0167 per share for the year ending December 31, 2024, totaling HKD 13,360,000, pending shareholder approval at the upcoming annual general meeting[51]. - The annual general meeting for 2024 is scheduled to be held on a date determined by the board, with a notice to be published on the stock exchange and the company's website[60]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to review internal controls, risk management, and financial reporting matters[59]. - The independent auditor confirmed that the figures in the preliminary announcement are consistent with the draft consolidated financial statements for the year ending December 31, 2024[61]. - The company has adhered to corporate governance standards as per the listing rules, ensuring a balance of power between the board and management[55]. - There have been changes in the board of directors, with Dr. Ho Ka Yan appointed as an independent non-executive director and Mr. Yip Siu Chan resigning from the same position[56]. Employee and Operational Information - Employee benefit expenses, including director remuneration, amounted to approximately HKD 100,595,000 for the year ended December 31, 2024, down from HKD 119,216,000 for the year ended December 31, 2023[47]. - The group has a total of 233 employees as of December 31, 2024, a decrease from 238 employees as of December 31, 2023[45]. - The group entered into a lease agreement for a property with a present value of approximately HKD 21 million, effective from September 2, 2024, to August 31, 2029[48]. Miscellaneous - The company has not experienced any significant events after the reporting period that would impact its financial position[50]. - The company has not granted any stock options under the stock option plan during the review year[58]. - The company has no significant investments, acquisitions, or disposals as of December 31, 2024[49]. - The company has not implemented any interest rate hedging policies and is closely monitoring interest rate risks[40]. - The company expresses gratitude to shareholders, customers, suppliers, subcontractors, banks, and professionals for their continued support[63].

Financial Performance - The revenue for the six months ended June 30, 2024, was approximately HK$404,683,000, representing a decrease of approximately 22.2% compared to HK$520,216,000 for the same period in 2023[7]. - The gross profit for the same period was approximately HK$55,843,000, with a gross profit margin of approximately 13.8%, an increase from 11.2% in 2023[8]. - Profit attributable to owners of the Company decreased by approximately 43.3% to HK$4,272,000 for the six months ended June 30, 2024, down from HK$7,528,000 in 2023[16]. - Excluding a non-recurring subsidy of approximately HK$2,295,000 in 2023, the adjusted profit for that period would be approximately HK$5,233,000, indicating an 18.4% decrease in profit for 2024[17]. - The profit attributable to owners for the six months ended June 30, 2024, was approximately HK$4,272,000, representing a decrease of about 43.3% from HK$7,528,000 in 2023[19]. - The company reported a profit and total comprehensive income for the period attributable to owners of HK$4,272,000, down from HK$7,528,000, a decrease of about 43%[69]. - Basic earnings per share for the six months ended June 30, 2024, was HK$0.53, down from HK$0.94 for the same period in 2023, representing a decrease of 43.6%[129]. Revenue Breakdown - For the six months ended June 30, 2024, the Group's revenue from fitting-out services was HK$403,075,000, a decrease of 22.4% compared to HK$519,311,000 in the same period of 2023[113]. - Revenue from repair and maintenance services increased to HK$1,608,000, up 77.5% from HK$905,000 in the prior year[113]. - Total revenue for the six months ended June 30, 2024, was HK$404,683,000, compared to HK$520,216,000 for the same period in 2023, reflecting a decline of 22.1%[113]. Expenses and Costs - Finance costs increased by approximately 13.0%, amounting to HK$17,451,000 for the six months ended June 30, 2024, compared to HK$15,443,000 in 2023[16]. - The increase in gross profit margin was attributed to improved cost control and project management during the review period[12]. - Employee benefit expenses for the six months ended June 30, 2024, amounted to approximately HK$52,229,000, a decrease from approximately HK$58,599,000 for the same period in 2023[36]. - The Group's profit for the period was impacted by subcontracting fees of HK$251,826,000, which increased from HK$236,571,000 in the previous year[124]. Financial Position - The Group's total debts, including bank borrowings and lease liabilities, were approximately HK$470,773,000 as of June 30, 2024, compared to approximately HK$444,341,000 as of December 31, 2023[27]. - The gearing ratio of the Group was approximately 66.4% as of June 30, 2024, slightly down from approximately 66.5% as of December 31, 2023[33]. - The current ratio of the Group was approximately 1.1 as of June 30, 2024, compared to approximately 1.2 as of December 31, 2023[33]. - Current liabilities increased to HK$769,475,000 from HK$668,957,000, an increase of about 15%[74]. Cash Flow - For the six months ended June 30, 2024, net cash generated from operating activities was HK$19,596,000, compared to HK$2,987,000 in the same period of 2023, representing a significant increase[79]. - The net cash used in investing activities was HK$9,105,000 for the first half of 2024, a decrease from HK$14,641,000 in the prior year, indicating improved cash management[79]. - Net cash generated from financing activities was HK$4,981,000, down from HK$12,986,000 in the previous year, reflecting changes in financing strategies[79]. - The total cash and cash equivalents at the end of the period increased to HK$57,863,000 from HK$51,795,000 year-over-year, showing a positive liquidity position[79]. - The company reported a net increase in cash and cash equivalents of HK$15,472,000 for the six months ended June 30, 2024, compared to HK$1,332,000 in the same period of 2023, highlighting strong cash flow performance[79]. Corporate Governance - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[50]. - All existing Directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended June 30, 2024[50]. - The Group complied with the Corporate Governance Code provisions applicable for the six months ended June 30, 2024[51]. - The interim condensed consolidated financial information was approved by the Board on 28 August 2024, ensuring timely reporting and governance[162]. Shareholder Information - As of June 30, 2024, Mr. Ng and Ms. Zhao each hold a long position of 600,000,000 shares, representing 75% of the issued share capital of Space Plus Investment Company Limited[54]. - The total number of shares available for issue under the Share Option Scheme is 76,000,000, which represents 9.5% of the issued shares[62]. - No options granted under the Share Option Scheme remained outstanding as of June 30, 2024[62]. - Space Plus is identified as a substantial shareholder with a beneficial ownership of 600,000,000 shares, representing a long position[59]. Future Outlook - The Group anticipates a challenging second half of 2024 due to high interest rates, inflation, and talent shortages, but expects long-term stability in the fitting-out industry in Hong Kong[26]. - The Group plans to continue developing and applying its technologies and technical solutions in a diversified manner to unlock new business opportunities[24]. - The Group will closely monitor its working capital management and adjust its business strategies as necessary[25].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 404,683,000, a decrease of 22.1% compared to HKD 520,216,000 for the same period in 2023[1] - Gross profit margin decreased to 13.6% from 11.2% year-on-year, with gross profit of HKD 55,843,000 compared to HKD 58,112,000 in the previous year[1] - Net profit attributable to owners of the company for the period was HKD 4,272,000, down 43.5% from HKD 7,528,000 in the same period last year[1] - Basic and diluted earnings per share decreased to HKD 0.53 from HKD 0.94 year-on-year[1] - For the six months ended June 30, 2024, the group's revenue from renovation services was HKD 403,075,000, a decrease of 22.4% compared to HKD 519,311,000 for the same period in 2023[10] - Revenue from maintenance and repair services for the same period was HKD 1,608,000, an increase of 77.5% from HKD 905,000 in 2023[10] - The total comprehensive income attributable to owners for the six months ended June 30, 2024, and June 30, 2023, was approximately HKD 4,272,000 and HKD 7,528,000, a decrease of about 43.3%[26] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 974,899,000, an increase of 12.0% from HKD 870,322,000 as of December 31, 2023[2] - Total liabilities increased to HKD 769,475,000, up 15.0% from HKD 669,170,000 at the end of 2023[3] - Trade receivables increased to HKD 127,322,000 from HKD 114,855,000 year-on-year, reflecting a growth of 10.5%[2] - Trade payables as of June 30, 2024, amounted to HKD 107,938,000, compared to HKD 75,689,000 as of December 31, 2023[20] - Total liabilities, including bank borrowings and lease liabilities, were approximately HKD 470,773,000 as of June 30, 2024, compared to HKD 444,341,000 as of December 31, 2023[30] - The company's asset-liability ratio is approximately 66.4% as of June 30, 2024, compared to 66.5% on December 31, 2023[31] - The current ratio of the company is approximately 1.1 as of June 30, 2024, down from 1.2 on December 31, 2023[31] Operational Insights - The company plans to expand its renovation services for residential and commercial properties in Hong Kong[4] - The company is focused on enhancing its operational efficiency and exploring new market opportunities[4] - The company experienced a decrease in material costs to HKD 53,616,000 for the six months ended June 30, 2024, from HKD 178,828,000 in the previous period[6] - The company’s interest expenses on borrowings increased to HKD 17,351,000 for the six months ended June 30, 2024, compared to HKD 15,263,000 for the same period in 2023[6] - The company’s performance was impacted by project delays due to client requests during the review period[22] - The group anticipates facing challenges in the second half of 2024 due to high interest rates, inflation, and talent shortages[29] - The group plans to invest necessary resources to further enhance its market share in the renovation industry in Hong Kong[29] - The group is focused on digital transformation by integrating technology and solutions with artificial intelligence and big data[29] Taxation and Accounting - The income tax expense for the six months ended June 30, 2024, was HKD 1,872,000, a decrease of 22.4% compared to HKD 2,413,000 for the same period in 2023[12] - The group’s income tax is calculated at a rate of 8.25% on the first HKD 2 million of estimated taxable profits, and 16.5% on the remaining amount[12] - The group has adopted new and revised standards effective from January 1, 2024, but does not need to change its accounting policies or make retrospective adjustments[7] - The group is currently evaluating the overall impact of new accounting standards that have been announced but are not yet mandatory[9] - The group has only one operating segment that meets the criteria for reportable segments under the Hong Kong Financial Reporting Standards[10] - The group’s financial statements are prepared based on historical cost convention, with insurance contract investments measured at the cash surrender value[8] Corporate Governance and Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with no dividend declared for the same period in 2023[17] - The company has no significant investments, acquisitions, or disposals as of June 30, 2024[34] - There are no major capital commitments as of June 30, 2024[36] - The company has no significant contingent liabilities as of June 30, 2024[37] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[39] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ended June 30, 2024[39] - The company has adhered to corporate governance standards and has no significant deviations from the rules as of June 30, 2024[41] - The company's share option plan was adopted on June 16, 2020, and is effective until June 15, 2030, aimed at recognizing contributions from eligible participants[42] - As of June 30, 2024, there are no unexercised share options granted under the share option plan[42] - The interim financial results have not been audited or reviewed by the company's auditors but have been reviewed by the audit committee[43] - The audit committee and management have reviewed the accounting principles adopted by the group and found no objections[43] - The interim results announcement will be published on the Hong Kong Stock Exchange website and the company's website[44] - The interim report for the six months ending June 30, 2024, will be available on the aforementioned websites and sent to shareholders upon request[44] - The company expresses gratitude to shareholders, customers, suppliers, and employees for their continued support and contributions[45]

Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$1,008,101,000, representing an increase of approximately 23.0% compared to HK$819,302,000 in 2022[13]. - The net profit for the year ended December 31, 2023, was approximately HK$22,168,000, a decrease of approximately 21.0% from HK$28,065,000 in 2022[13]. - Excluding the exceptional item from the previous year, the adjusted net profit for 2022 would be approximately HK$15,887,000, indicating a 39.5% increase in net profit for 2023 compared to this adjusted figure[13]. - The Group's gross profit for the year ended December 31, 2023, was approximately HK$129,565,000, an increase of approximately 13.6% from approximately HK$114,023,000 in 2022[24]. - The profit attributable to owners of the Company for the year ended December 31, 2023, was approximately HK$22,168,000, a decrease of approximately 21.0% from approximately HK$28,065,000 in 2022[40]. - The Group's other income decreased by approximately 81.5%, from approximately HK$12,405,000 in 2022 to approximately HK$2,295,000 in 2023, primarily due to the absence of subsidies from the Employment Support Scheme[26]. Business Development and Technology - The Group launched the "Oodles Smart Solution" in March 2023, which utilizes artificial intelligence for real-time interior design modifications[15]. - The patented "Cubicles and Smart Washroom Solution" and "Oodles Transformer" were also successfully launched, enhancing the Group's technology offerings[15]. - The Group aims to diversify its business through the realization of opportunities arising from new technologies and technical solutions[15]. - The Group has launched new technology solutions, including "Oodles Smart Solution" and "Cubicles and Smart Washroom Solution," to enhance its service offerings and market position[20]. Market Outlook - The Group expects 2024 to be a challenging year due to slow post-pandemic economic recovery, high interest rates, inflation, and talent shortages[50]. - The Group plans to increase its market share in the fitting-out industry in Hong Kong as supported by the government's development of land resources to meet housing demand[51]. Corporate Governance - The Board is committed to achieving a high standard of corporate governance and has complied with all applicable code provisions as set out in the Corporate Governance Code[89]. - The Board currently comprises five members, including two executive Directors and three independent non-executive Directors[101]. - The Company has established mechanisms for independent non-executive directors to express their views openly and provide independent professional judgments on the Group's development and risk management[107]. - The Company has mechanisms in place to deal with conflicts of interest through physical Board meetings rather than written resolutions[115]. - The Company has adopted a Board Diversity Policy to ensure a balanced mix of expertise, skills, and perspectives among board members[135]. Employee and Workforce Management - The Group employed a total of 238 employees as of December 31, 2023, a decrease from 272 employees as of December 31, 2022[68]. - Employee benefit expenses, including Directors' emoluments, amounted to approximately HK$119,216,000 for the year ended December 31, 2023, compared to approximately HK$116,827,000 in 2022, representing an increase of about 2.4%[76]. - Contributions to the MPF Scheme charged to the Group's consolidated statement of comprehensive income during the year ended December 31, 2023, were approximately HK$5,831,000, an increase from approximately HK$3,821,000 in 2022, reflecting a rise of about 52.6%[75]. Risk Management and Internal Control - The Group's risk management and internal control procedures aim to safeguard assets against misappropriation and ensure reliable accounting records[199]. - The Directors acknowledged their responsibility for preparing consolidated financial statements that accurately reflect the Group's state of affairs as of December 31, 2023[192]. - There were no material uncertainties regarding events or conditions that could significantly doubt the Company's ability to continue as a going concern[193]. Committees and Meetings - The Audit Committee held three meetings during the year ended December 31, 2023, to review the Group's financial results and audit plans[154]. - The Remuneration Committee also held three meetings for the year ended December 31, 2023[179]. - The Nomination Committee held three meetings during the year ended December 31, 2023[163].

Financial Performance - Revenue for the year 2023 was HKD 1,008,101, an increase of 23.1% from HKD 819,302 in 2022[1] - Gross profit for 2023 was HKD 129,565, compared to HKD 114,023 in 2022, reflecting a growth of 13.6%[1] - The company reported a pre-tax profit of HKD 57,258, up from HKD 49,268 in the previous year, an increase of 16.4%[1] - The net profit attributable to the company's owners for the year was approximately HKD 22,168,000, a decrease of about 21.0% from HKD 28,065,000 in 2022[52] - Basic and diluted earnings per share for 2023 were HKD 2.77, down from HKD 3.51 in 2022, a decline of 21%[1] - Basic earnings per share for 2023 were HKD 2.77, down from HKD 3.51 in 2022, reflecting a decrease of approximately 21%[29] Expenses and Liabilities - Administrative expenses decreased to HKD 71,023 in 2023 from HKD 74,602 in 2022, a reduction of 4.8%[1] - The company's total liabilities increased to HKD 669,170 in 2023, up from HKD 620,142 in 2022, representing an 7.9% rise[3] - Trade payables increased to HKD 75,689 in 2023 from HKD 52,706 in 2022, marking a rise of 43.5%[3] - The income tax expense for 2023 was HKD 3,765, a decrease from HKD 4,789 in 2022, representing a reduction of approximately 21.4%[25] - Financial costs increased by approximately 90.7%, from HKD 16,473,000 in 2022 to HKD 31,417,000 in 2023, mainly due to higher bank borrowing and interest rates[61] Assets and Equity - The total equity and liabilities amounted to HKD 870,322 in 2023, compared to HKD 799,126 in 2022, indicating a growth of 8.9%[3] - The total assets of the group as of December 31, 2023, amounted to HKD 870,322,000, an increase of 8.9% from HKD 799,126,000 in the previous year[102] - The group's equity attributable to owners was HKD 201,152,000, reflecting a growth of 12.3% compared to HKD 178,984,000 in the prior year[102] - The group's debt-to-equity ratio as of December 31, 2023, was approximately 66.5%, slightly improved from 66.8% on December 31, 2022[71] Revenue Sources - Major customer revenues for 2023 included Customer A at HKD 203,252, Customer B at HKD 174,833, and Customer C at HKD 144,234, with Customer B showing a decrease from HKD 230,599 in 2022[21] - Other income decreased significantly by approximately 81.5%, from HKD 12,405,000 in 2022 to HKD 2,295,000 in 2023, primarily due to the absence of government subsidies under the "Employment Support Scheme" in Hong Kong[53] Employee and Operational Insights - Employee costs, including director remuneration, were approximately HKD 119,216,000 for the year ended December 31, 2023, compared to HKD 116,827,000 in 2022[80] - The group employed a total of 238 employees as of December 31, 2023, down from 272 employees a year earlier[93] - The number of ongoing renovation projects increased to 51 in 2023 from 46 in 2022, with a total contract value of approximately HKD 4,129 million compared to HKD 3,822 million in 2022[65] Future Outlook and Strategy - The company anticipates that 2024 will be a challenging year due to high interest rates, inflation, and talent shortages, but expects stable long-term growth in the renovation sector in Hong Kong[58] - The company plans to continue leveraging big data and artificial intelligence to enhance project management efficiency and create long-term value for stakeholders[67] - The board maintains a cautiously optimistic outlook for the group's long-term business prospects, emphasizing careful monitoring of operational cash management for sustainable development in 2024[68] Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to review internal controls, risk management, and financial reporting matters[126] - The company has complied with all corporate governance code provisions as of December 31, 2023[123] - The independent auditor confirmed that the figures in the preliminary announcement are consistent with the draft consolidated financial statements for the year ending December 31, 2023[120] Dividends and Share Options - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[35] - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[83] - As of December 31, 2023, there are no unexercised options granted under the share option scheme[117] - The share option scheme was adopted on June 16, 2020, and is effective until June 15, 2030, aimed at recognizing contributions from eligible participants[116]

Financial Performance - The revenue for the six months ended June 30, 2023, was approximately HK$520,216,000, representing an increase of approximately 67.1% compared to HK$311,235,000 for the same period in 2022[9]. - The gross profit for the same period was approximately HK$58,112,000, an increase of approximately 59.0% from HK$36,546,000 in 2022, with a stable gross profit margin of approximately 11.2%[11]. - The profit attributable to owners of the Company for the period was approximately HK$7,528,000, a turnaround from a loss of approximately HK$9,246,000 in the same period of 2022[23]. - Basic and diluted earnings per share for the period were HK$0.94, compared to a loss per share of HK$1.16 in the previous year[107]. - The Group's profit attributable to owners for the period was HK$7,528,000, compared to a loss of HK$9,246,000 in the same period of 2022, marking a turnaround[160]. - The Group's total comprehensive income for the period was HK$7,528,000, marking a recovery from the total comprehensive loss of HK$9,246,000 in the prior year[114]. Revenue and Project Management - The increase in revenue was attributed to the acceleration of project progress requested by customers in the post-pandemic era[10]. - As of June 30, 2023, the Group had 46 fitting-out projects on hand with a total contract sum of approximately HK$3,891 million, including 30 projects with a total contract sum of approximately HK$3,549 million[26]. - For the six months ended June 30, 2023, the Group's revenue from fitting-out services was HK$519,311,000, an increase of 67.7% compared to HK$309,418,000 in the same period of 2022[147]. Financial Position and Assets - Total assets as of June 30, 2023, amounted to HK$833,993,000, an increase from HK$799,126,000 as of December 31, 2022[109]. - Trade receivables decreased to HK$111,807,000 from HK$187,491,000, indicating improved cash flow management[109]. - Contract assets rose to HK$476,542,000 from HK$419,791,000, reflecting growth in ongoing projects[109]. - The Group's total debts, including bank borrowings and lease liabilities, increased to approximately HK$448,533,000 as of June 30, 2023, compared to approximately HK$413,396,000 as of December 31, 2022[39]. - The Group's total equity attributable to owners of the Company increased to HK$186,512,000 from HK$178,984,000 at the end of 2022[112]. Expenses and Costs - Finance costs increased significantly by approximately 165.9%, reaching approximately HK$15,443,000, primarily due to increased usage of bank borrowings and rising interest rates[22]. - For the six months ended June 30, 2023, employee benefit expenses amounted to approximately HK$58,599,000, an increase of 9.4% compared to approximately HK$53,723,000 for the same period in 2022[53]. - Administrative expenses remained relatively stable at approximately HK$33,803,000 for the six months ended June 30, 2023, compared to approximately HK$36,586,000 in 2022[13]. Corporate Governance and Compliance - The Group has complied with the Corporate Governance Code provisions during the reporting period, except for the separation of the roles of chairman and chief executive officer[70]. - The interim results for the six months ended June 30, 2023, have been reviewed by the Audit Committee and comply with applicable accounting standards[100]. - The Company has appointed a new independent non-executive director effective July 17, 2023, enhancing governance[105]. Market Outlook and Strategy - The Group plans to increase its market share in the fitting-out industry in Hong Kong by allocating necessary resources when appropriate[32]. - The Group expects 2023 to be a challenging year due to uncertainties such as high inflation and rising interest rates[31]. - The Group is integrating big data and artificial intelligence into home design and fitting-out projects to enhance efficiency and reduce costs[33]. Shareholder Information - The Board does not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2023[66]. - The Group's issued capital was HK$8,000,000 with 800,000,000 ordinary shares as of June 30, 2023[43]. - As of June 30, 2023, Mr. Ng and Ms. Zhao each hold 600,000,000 shares in Fate Investment, representing a 75% shareholding[81][82][89]. Investments and Acquisitions - The Group did not have any significant investments, material acquisitions, or disposals for the six months ended June 30, 2023, and there were no formal plans authorized by the Board for such activities[54]. - The company invested HK$15,169,000 in purchasing insurance contracts, a decrease from HK$19,693,000 in the previous year, suggesting a strategic shift in investment focus[117]. Risk Management - The Group does not have any material foreign exchange risk exposure as most transactions are denominated in Hong Kong Dollars[46]. - The Group will continue to monitor its working capital management closely to ensure corporate sustainability in 2023[34].

Financial Performance - The Group's revenue for the year ended December 31, 2022, was approximately HK$819,302,000, compared to approximately HK$798,108,000 for 2021, indicating stability [10]. - The net profit for the year ended December 31, 2022, was approximately HK$28,065,000, representing an increase of approximately 122.8% from HK$12,597,000 in 2021 [10]. - Excluding the COVID-19 related subsidy of approximately HK$12,178,000, the adjusted net profit for 2022 would be approximately HK$15,887,000, reflecting a 32.0% increase compared to the adjusted profit for 2021 [10]. - The gross profit for 2022 was approximately HK$114,023,000, with a gross profit margin of approximately 13.9%, compared to HK$102,298,000 and 12.8% in 2021, respectively [23]. - Other income for 2022 was approximately HK$12,405,000, a significant increase of approximately 1,875.3% from approximately HK$628,000 in 2021, primarily due to government subsidies [24]. - Profit and total comprehensive income attributable to owners of the Company for the year ended December 31, 2022, was approximately HK$28,065,000, representing an increase of approximately 122.8% from approximately HK$12,597,000 in 2021 [36]. - Excluding the exceptional item under COVID-19, the adjusted profit for 2022 would be approximately HK$15,887,000, reflecting an increase of approximately 32.0% compared to the adjusted figure for 2021 [37]. Expenses and Costs - Administrative expenses remained stable at approximately HK$74,602,000 for 2022, compared to approximately HK$76,547,000 in 2021 [26]. - Finance costs increased by approximately 54.9%, amounting to approximately HK$16,473,000 in 2022, up from approximately HK$10,638,000 in 2021 [27]. - Employee benefit expenses, including Directors' emoluments, amounted to approximately HK$116,827,000 for the year ended December 31, 2022, compared to approximately HK$109,865,000 in 2021 [71]. - Contributions to the defined contribution retirement scheme charged to the Group's consolidated statement of comprehensive income during the year ended December 31, 2022, were approximately HK$3,821,000, up from approximately HK$3,558,000 in 2021 [70]. Debt and Financial Position - Total debts of the Group, including bank borrowings and lease liabilities, were approximately HK$413,396,000 as of December 31, 2022, compared to approximately HK$272,185,000 in 2021 [50][53]. - The Group's gearing ratio as of December 31, 2022, was approximately 66.8%, an increase from approximately 57.4% as of December 31, 2021 [63]. - The current ratio of the Group remained stable at approximately 1.2 as of December 31, 2022, consistent with the previous year [63]. Business Strategy and Future Prospects - The Group successfully launched technologies and technical solutions, including virtual reality technology and digital design services, to diversify its business [12]. - The Group aims to capitalize on opportunities arising from its new technologies to enhance value and expand its market presence [12]. - The Group plans to integrate technologies and big data into home design and fitting-out projects to create a one-stop home furnishings solution aimed at cost savings and efficiency improvements [48]. - The Group expects stable long-term business prospects in the fitting-out industry in Hong Kong, supported by government initiatives to develop land resources to meet housing demand [47]. - The Group will adopt a cautious approach to ensure corporate sustainability in 2023, closely monitoring working capital management and potential commercialization of its technologies [49]. Corporate Governance - The Board is committed to achieving high standards of corporate governance and maintaining transparent management practices [90]. - The Company complied with all applicable code provisions set out in the Corporate Governance Code for the year ended December 31, 2022 [91]. - The Board currently comprises six members, including two executive Directors, one non-executive Director, and three independent non-executive Directors [103]. - The Company has mechanisms for independent non-executive directors to express their views openly and provide independent professional judgments on the Group's development and risk management [109]. - Regular Board meetings are held at least four times a year, with additional meetings as deemed appropriate by the Board [117]. - The Company complied with the Listing Rules regarding the independence of non-executive directors for the year ended December 31, 2022 [126]. - All directors are subject to retirement by rotation at least once every three years, ensuring regular re-evaluation of the Board's composition [128]. - The Nomination Committee is responsible for reviewing the Board's structure and monitoring the appointment and succession planning of directors [129]. Diversity and Inclusion - The Board consists of six Directors, including one female executive Director, reflecting the company's commitment to gender diversity [143]. - The company has established a Board Diversity Policy to achieve a balance of expertise, skills, experience, and perspectives [141]. - The company recognizes the value of gender diversity and will explore channels to increase female representation in its workforce [148]. - The company aims to increase the representation of women across all levels of the organization without setting specific gender targets [154]. Audit and Risk Management - The Audit Committee is responsible for maintaining relationships with the auditor and reviewing financial information and internal control systems [152]. - The Audit Committee held three meetings during the year ended December 31, 2022, to discuss the group's financial results and audit plans [160]. - The Group's risk management and internal control procedures include a management structure with clearly defined lines of responsibility and limits of authority [200]. - The primary aim is to provide reasonable assurance that assets are safeguarded against misappropriations [200]. - The procedure is designed to identify, evaluate, and manage risks effectively [200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損 失承擔任何責任。 Superland Group Holdings Limited 德 合 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：368） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 年 度 業 績 公 告 德合集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年 度之經審核綜合業績，連同截至二零二一年十二月三十一日止年度同期 之比較數字如下： 綜合全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 5 819,302 798,108 服務成本 (705,279) (695,810) 毛利 114,023 102,298 其他收入 6 12,405 628 其他虧損淨額 (2,466) (57) 行政費用 (74,602 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HK$311,235,000, compared to HK$327,838,000 for the same period in 2021, indicating stability [21]. - Gross profit for the six months ended June 30, 2022, was approximately HK$36,546,000, with a gross profit margin of approximately 11.7%, compared to HK$34,887,000 and 10.6% in 2021 [21]. - The loss attributable to owners of the Company for the six months ended June 30, 2022, was approximately HK$9,246,000, representing an increase of approximately 18.1% from HK$7,826,000 in 2021 [21]. - Revenue for the six months ended June 30, 2022, was HK$311,235,000, a decrease of 5.1% from HK$327,838,000 in the same period of 2021 [127]. - Gross profit for the same period was HK$36,546,000, representing a gross margin of 11.7% compared to 10.6% in 2021 [127]. - Loss attributable to owners of the Company for the period was HK$9,246,000, compared to a loss of HK$7,826,000 in 2021, indicating a 18.1% increase in loss [127]. - Basic and diluted loss per share was HK$1.16, compared to HK$0.98 in the previous year, reflecting a 18.4% increase in loss per share [127]. Revenue Breakdown - For the six months ended June 30, 2022, the Group's revenue from fitting-out services was HK$309,418,000, a decrease of 5.3% from HK$326,839,000 in the same period of 2021 [165]. - Revenue from repair and maintenance services increased significantly to HK$1,817,000, compared to HK$999,000 in the previous year, marking an increase of 81.8% [165]. - The Group's total revenue for the six months ended June 30, 2022 was HK$311,235,000, down from HK$327,838,000 in 2021, reflecting a decrease of 5.1% [165]. Expenses and Costs - Other income decreased by approximately 97.2%, from HK$564,000 in 2021 to HK$16,000 in 2022, primarily due to reduced subsidies from the Hong Kong government [21]. - Administrative expenses remained stable at approximately HK$36,586,000 in 2022, compared to HK$38,496,000 in 2021 [21]. - Employee benefit expenses for the six months ended June 30, 2022, totaled approximately HK$53,033,000, slightly up from approximately HK$52,305,000 for the same period in 2021 [49]. - The Group's employee benefit expenses for the period were HK$53,723,000, an increase from HK$52,305,000 in the previous year, representing a rise of 2.7% [178]. - Finance costs were approximately HK$5,808,000 in 2022, slightly up from HK$5,348,000 in 2021, indicating stability [21]. - The Group's interest expenses on borrowings increased to HK$5,725,000 from HK$5,117,000, reflecting an increase of 11.9% [178]. Assets and Liabilities - The Group's total debt, including bank borrowings and lease liabilities, was approximately HK$335,849,000 as of June 30, 2022, compared to approximately HK$272,185,000 as of December 31, 2021 [37]. - The gearing ratio of the Group was approximately 66.3% as of June 30, 2022, up from approximately 57.4% as of December 31, 2021 [43]. - Total assets as of June 30, 2022, were HK$659,797,000, a slight increase from HK$648,814,000 as of December 31, 2021 [131]. - Total equity attributable to owners of the Company decreased to HK$141,673,000 from HK$150,919,000, a decline of 6.1% [131]. - Trade receivables increased to HK$110,575,000 from HK$92,059,000, representing a growth of 20.1% [131]. - Cash and cash equivalents decreased to HK$53,405,000 from HK$62,317,000, a decline of 14.5% [131]. - Borrowings increased to HK$332,199,000 from HK$265,186,000, indicating a rise of 25.2% [134]. Market Position and Strategy - The Group plans to increase its market share in the fitting-out industry in Hong Kong, supported by the government's commitment to develop land resources [29]. - The Group's technologies and technical solutions are aimed at creating a one-stop home furnishings solution to improve cost savings and efficiency [35]. - The Group will closely monitor its working capital management and adjust business strategies as necessary in response to market conditions [36]. - The Group expects to face ongoing challenges due to the impact of the COVID-19 pandemic, despite recent stabilization [31]. - The Group will assess opportunities arising from the application of its technologies and technical solutions to the general public [38]. Shareholder Information - The Group's issued capital was HK$8,000,000 with 800,000,000 ordinary shares as of June 30, 2022 [41]. - As of June 30, 2022, Mr. Ng and Ms. Zhao each hold 600,000,000 shares, representing a 75% long position in the company [82]. - Mr. Ng is deemed to be interested in the entire issued share capital of Fate Investment Company Limited, which holds the same number of shares [84]. - The company's share option scheme was adopted on June 16, 2020, and is valid until June 15, 2030, aimed at motivating eligible participants and retaining business relationships [103]. - The Company granted 4,000,000 share options at an exercise price of HK$0.712 per share on 1 April 2021 [105]. - As of 30 June 2022, all 4,000,000 share options granted under the Share Option Scheme were cancelled [113]. - The Directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the same period in 2021 [185]. Corporate Governance - The Company’s Audit Committee reviewed the interim results for the six months ended 30 June 2022, ensuring compliance with applicable accounting standards [123]. - Ms. Ho Nga Ling resigned as an executive Director effective 31 August 2022, following a mutual decision not to renew her service contract [122]. - The Group did not have any significant related party transactions during the six months ended June 30, 2022 [72]. - There were no significant contingent liabilities as of June 30, 2022, consistent with the position as of December 31, 2021 [64]. Cash Flow - Net cash used in operating activities was $(50,559) thousand, compared to $(22,049) thousand in the previous period [143]. - Net cash used in investing activities totaled $(19,693) thousand, an increase from $(11,474) thousand in the prior period [143]. - Net cash generated from financing activities was $61,340 thousand, up from $29,166 thousand year-over-year [143]. - Cash and cash equivalents at the end of the period were $53,405 thousand, compared to $49,771 thousand at the end of the previous period [143]. - The company reported a net decrease in cash and cash equivalents of $(8,912) thousand, compared to $(4,357) thousand in the prior period [143]. Compliance and Accounting - The financial statements were prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 for interim financial reporting [150]. - Management is assessing the impact of new accounting standards effective from January 1, 2023, which have not been early adopted [160].

Financial Performance - The Group's revenue for the year ended December 31, 2021, was approximately HK$798,108,000, representing an increase of approximately 17.3% compared to HK$680,212,000 in 2020[14]. - The net profit for the year ended December 31, 2021, was approximately HK$12,597,000, a decrease of approximately 30.2% from HK$18,049,000 in 2020[14]. - Excluding one-off and non-recurring items, the adjusted profit attributable to owners for 2021 would be approximately HK$12,033,000, reflecting an increase of approximately 17.7% compared to the adjusted figure for 2020[14]. - The gross profit for the year ended December 31, 2021, was approximately HK$102,298,000, with a gross profit margin of approximately 12.8%, compared to HK$93,197,000 and 13.7% in 2020[29]. - Other income decreased significantly by approximately 96.0%, from approximately HK$15,797,000 in 2020 to approximately HK$628,000 in 2021[31]. - Administrative expenses increased by approximately 11.3%, from approximately HK$68,792,000 in 2020 to approximately HK$76,547,000 in 2021[33]. - Finance costs decreased by approximately 27.4%, from approximately HK$14,647,000 in 2020 to approximately HK$10,638,000 in 2021[45]. - Profit attributable to owners of the Company for the year ended December 31, 2021, was approximately HK$12,597,000, representing a decrease of approximately 30.2% from HK$18,049,000 in 2020[46]. Project and Contract Information - The Group had a total of 43 fitting-out projects on hand as of December 31, 2021, with an aggregate total contract sum of approximately HK$3,221 million[56]. - Among the projects on hand, 25 projects had a total contract sum of approximately HK$2,865 million, an increase from 23 projects amounting to approximately HK$2,597 million in 2020[56]. - As of December 31, 2021, the Group had a total of 43 renovation projects with a total contract value of approximately HK$3,221 million[59]. - Among these, 25 projects had a contract value of approximately HK$50 million or more, totaling approximately HK$2,865 million, an increase from 23 projects valued at approximately HK$2,597 million as of December 31, 2020[59]. Debt and Financial Ratios - The Group's total debt, including bank borrowings and lease liabilities, was approximately HK$272,185,000 as of December 31, 2021, compared to approximately HK$235,276,000 as of December 31, 2020[65]. - The gearing ratio of the Group was approximately 57.4% as of December 31, 2021, compared to approximately 56.4% as of December 31, 2020[72]. - The current ratio of the Group remained stable at approximately 1.2 as of December 31, 2021, consistent with the previous year[72]. Technology and Business Strategy - The Group is leveraging first-mover advantages in technologies such as virtual reality, digital design services, and three-dimensional laser scanning to drive business growth and diversification[22]. - The Group aims to realize and commercialize its existing and future technologies to create new opportunities and enhance value[22]. - The Group is focusing on diversifying its technology and solutions, including virtual reality technology and digital design services, to create new opportunities and enhance business growth[28]. - The Group intends to commercialize its existing technologies and technical solutions to create new opportunities and enhance cost savings[64]. - The Group has successfully launched certain technologies and aims to solidify their development for industry participants and end users[66]. Employee and Management Information - As of December 31, 2021, the Group employed a total of 264 employees, an increase from 254 employees in 2020[81]. - Employee benefit expenses, including Directors' emoluments, amounted to approximately HK$109,865,000 for the year ended December 31, 2021, compared to approximately HK$99,302,000 in 2020, representing an increase of about 10%[86][91]. - Contributions to the defined contribution retirement scheme for the year ended December 31, 2021, were approximately HK$3,558,000, up from approximately HK$3,467,000 in 2020[83][85]. Corporate Governance - The Board is responsible for corporate policy formulation, business strategic planning, risk management, and significant operational and financial matters[113]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance by all Directors for the year ended December 31, 2021[114]. - The Board comprises seven members, including three executive Directors, one non-executive Director, and three independent non-executive Directors[122]. - Each executive Director has a service contract for a term of two or three years, while non-executive Directors have a three-year appointment[125]. - The Board has established various committees, including the Remuneration Committee, Nomination Committee, and Audit Committee, to delegate specific responsibilities[118]. - The Company provides appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[121]. - The Board continuously reviews and improves corporate governance practices to create long-term value for shareholders[114]. - Independent non-executive Directors provide independent professional judgments on the Group's development and risk management[123]. - The Company ensures that all Directors have access to Board papers and can seek independent professional advice at the Company's expense[119]. - The Board is committed to maintaining high levels of corporate governance and transparency in management practices[114]. - The Board chairman and independent non-executive Directors met at least once without the presence of other executive Directors for the year ended December 31, 2021[193]. - Regular Board meetings are held at least four times annually, with additional meetings as deemed appropriate by the Board[197]. - Meeting papers are sent to Directors at least 3 days before meetings to keep them informed of the Group's latest developments and financial position[199]. Future Outlook - The fifth wave of COVID-19 is expected to impact the overall economy of Hong Kong in the short term, affecting the Group's future prospects[57]. - The Group will adopt a cautious approach to ensure corporate sustainability in 2022 and closely monitor working capital management[65]. IPO and Capital Management - The net proceeds raised from the IPO were approximately HK$79.4 million, with HK$59.8 million utilized by December 31, 2021, leaving HK$19.6 million unutilized[87][90]. - The Group did not have any significant investments, material acquisitions, or disposals for the year ended December 31, 2021[95][100]. - There were no significant capital commitments as of December 31, 2021[97][102]. - The Group did not anticipate any changes to the plan regarding the use of IPO proceeds as of the date of the annual report[88][92]. Risk Management - The Group closely monitors its foreign currency exposure and has not employed any financial instruments for hedging purposes as of December 31, 2021[80][84].