（股份代號：2262） 董事會會議通告 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的內容概不負責，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倚賴 該等內容而引致的任何損失承擔任何責任。 STEVE LEUNG DESIGN GROUP LIMITED 梁志天設計集團有限公司 （於開曼群島註冊成立的有限公司） 主席 許興利 香港，2025年8月12日 於本公告日期，本公司執行董事為梁志天先生（銅紫荊星章）、蕭文熙先生（首席 執行官）及葉玨鴻先生（首席財務官）；非執行董事為許興利先生（主席）、丁敬勇 先生及黃文熙先生；及獨立非執行董事為劉珝先生、曾浩嘉先生及王婉君女士。 1. 省覽及批准本集團截至2025年6月30日止六個月期間的未經審核綜合業績 （「2025年中期業績」）及批准根據香港聯合交易所有限公司證券上市規則將 予發佈的2025年中期業績公告的初稿； 2. 考慮建議派發中期股息（如有）； 3. 考慮暫停辦理本公司股東過戶登記手續（如有需要）；及 4. 處理任何其他事務。 STEVE LEUNG DESIGN GROUP LIMITED梁志天設計 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 梁志天設計集團有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02262 | 說明 | 梁志天設計集團 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.01 | HKD | | 40,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.01 | HKD | | 40,000,000 | 本 ...

Group 1 - The stock price of Steve Leung Design Group Limited (02262.HK) closed at HKD 1.310 on June 6, remaining flat compared to the previous trading day, with an intraday high of HKD 1.320, marking a new high in nearly a year [1] - On the same day, the net capital flow showed an inflow of HKD 35,550 and an outflow of HKD 402,570, resulting in a net outflow of HKD 367,000 [1] Group 2 - Steve Leung Design Group Limited, founded by renowned designer Steve Leung in 1997, officially entered the domestic market in 2000 and was listed on the Hong Kong Stock Exchange in 2018, becoming the first publicly listed company in Hong Kong to provide pure design services [2] - The company has dual headquarters in Hong Kong and Shanghai, with branches in Beijing and Guangzhou, employing over 500 elite team members, making it one of the largest interior design companies in Asia [2] - The company has completed design projects in over 130 cities globally and has won more than 210 international design and corporate awards [2] - Since 2016, the company has been ranked first globally in the residential category by the authoritative magazine "Interior Design" and was ranked 21st overall in 2021 [2] - The company offers a diverse range of high-quality design services through its 12 brands, including model homes, sales centers, clubs, luxury residences, serviced apartments, hotels, restaurants, commercial and office spaces, as well as healthcare and elderly care facilities [2] - Notable projects include the Shangri-La Hotel in London, Park Mansion in Tokyo, Atlantis The Palm in Dubai, and various high-profile developments in China [2] - The company's business scope extends from interior design and furnishing services to product design, collaborating with several internationally renowned home brands to launch various product designs [2]

Group 1: Market Entry and Expansion - CHAGEE opened its first store in North America at Westfield Century City in Los Angeles, showcasing modern tea drinks and attracting long queues [1] - The new tea beverage industry in China is experiencing rapid growth, with brands like ChaPanda, MIXUE, HEYTEA, and CHAGEE expanding internationally [3] - Several tea companies, including MIXUE, have successfully listed in Hong Kong, indicating a trend of Chinese retail brands going global [4] Group 2: Factors Driving International Expansion - The global expansion of brands is driven by the need for internationalization, competitive domestic markets, and the growing overseas Chinese population [4][5][6] - Establishing physical stores abroad enhances brand visibility and can attract investment, which may lead to better domestic store locations in the future [5] - The increasing number of overseas Chinese consumers creates demand for Chinese products, which are often perceived as cost-effective [4] Group 3: Key Markets for Chinese Brands - Hong Kong is a significant market for brands due to its proximity to mainland China, making it easier for brands with established retail networks in southern China to enter [7] - Southeast Asia, particularly Singapore, is a competitive market for Chinese brands, driven by a large Chinese population [8] - European cities like London and Paris are viewed as essential for brands aiming for international recognition, although cultural differences pose challenges [9] Group 4: Challenges in International Markets - Chinese brands face challenges in gaining local consumer recognition and adapting to cultural differences, particularly in Europe [17] - Supply chain and logistics issues require careful planning before entering new markets [18] - High operational costs in markets like Singapore and Europe necessitate thorough financial planning [18] Group 5: Localization Strategies - Successful market entry requires understanding local consumer habits and preferences, with brands needing to adjust their offerings accordingly [19][20] - Brands should focus on high-traffic areas for store locations to maximize visibility and customer engagement [19] - The importance of local partnerships for smooth market entry and operations is emphasized, as they can help navigate local regulations and consumer preferences [18]

Financial Performance - The company achieved profitability in the fiscal year ending December 31, 2024, despite a challenging economic environment[9]. - The group recorded total revenue of approximately HKD 367.7 million for the year ending December 31, 2024, representing an increase of about 3.3% compared to HKD 355.8 million for the previous year[26]. - Gross profit increased to approximately HKD 146.8 million, with a gross margin rising from 39.2% to 39.9% due to effective cost control measures[26]. - The group achieved a turnaround from a loss of approximately HKD 20.0 million in the previous year to a net profit of approximately HKD 1.2 million after tax for the current year[26]. - The company reported a year-on-year decline of 10.6% in national real estate development investment growth as of December 2024[20]. - The company has successfully turned losses into profits despite a turbulent market and intensified competition in the interior design industry[23]. Market Strategy and Expansion - New contract signings and contract amounts continued to grow, indicating a broader project scope and potential for future development[9]. - The company plans to expand its brand influence through a strategy of "youthfulness, diversification, and internationalization" in 2025[10]. - The company aims to focus on "youthfulness, diversity, and internationalization" to transform into a cross-disciplinary lifestyle brand[13]. - The company plans to expand its design business beyond real estate and private residences, targeting potential overseas markets in Southeast Asia, the Middle East, and Europe[13]. - The company is actively exploring overseas markets and other business sectors, including hotels and high-end membership clubs, to mitigate risks associated with over-reliance on the Chinese residential market[24]. - The company aims to leverage its established foundation to face new challenges and achieve mutual benefits with industry partners[10]. Cost Management and Efficiency - The company is focusing on enhancing core competitiveness and implementing cost reduction strategies to adapt to market changes[10]. - The company has implemented cost-reduction and efficiency-enhancement measures to navigate increased operational costs and financial pressures[23]. - The group implemented cost control measures that led to a reduction in selling and administrative expenses, contributing to improved profitability[26]. - Sales expenses decreased from approximately HKD 20.8 million to about HKD 19.4 million, a reduction of approximately 6.7% due to efficiency improvements and cost-saving measures[42]. - Administrative expenses decreased from approximately HKD 107.2 million to about HKD 105.8 million, a reduction of approximately 1.3% attributed to ongoing cost control and workforce optimization[43]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the year and up to the report date[97]. - The board of directors is responsible for leading and managing the group, overseeing business strategies and performance[98]. - The company has adopted a corporate governance manual to ensure adherence to the corporate governance code[96]. - The board consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2024[102]. - The company has established various board committees to oversee specific responsibilities[98]. - The company has a clear directive for management to report to the board before making any significant decisions[101]. Risk Management - The company is committed to enhancing its internal risk management functions, with the Risk Management Committee reviewing market, operational, and legal risks[142]. - The board is responsible for evaluating the acceptability of risks associated with achieving strategic objectives[153]. - The company continues to enhance internal controls and risk management procedures in response to market risks[156]. - The board has confirmed the effectiveness of the risk management and internal control systems, stating they are effective and adequate[154]. Environmental, Social, and Governance (ESG) Initiatives - The company’s environmental, social, and governance (ESG) report reflects its commitment to sustainable development and includes data from its expanded operational scope, including Shenzhen[170]. - The company emphasizes the importance of effective environmental, social, and governance (ESG) management for sustainable business development[178]. - The company conducted an ESG survey this year to engage various stakeholders, including senior management, employees, customers, and suppliers[183]. - The company is committed to monitoring identified environmental, social, and governance issues to allocate resources effectively[196]. - Total harmless waste decreased by 4% compared to the previous year[200]. Employee and Stakeholder Engagement - The total employee compensation for the year was approximately HKD 166.3 million, a decrease from HKD 171.2 million in the previous year, due to ongoing cost-saving measures[66]. - 53% of employees are female, and 59% have been with the company for 5 years or more[200]. - 71% of employees participated in internal training, with an average training time of 3.78 hours[200]. - The company encourages shareholders to submit inquiries and concerns in writing to facilitate effective communication[164]. - The company aims to create value for stakeholders by understanding and addressing their core concerns through effective communication[183].

Core Viewpoint - The article highlights a food safety incident involving Yang Guo Fu Spicy Hot Pot in Suzhou, where a rat was found in the food display area, leading to immediate regulatory action and increased scrutiny on food safety practices [1][2][3]. Group 1: Incident Details - On March 21, the Suzhou Industrial Park Market Supervision Administration reported a rat sighting in a Yang Guo Fu Spicy Hot Pot store, prompting an immediate inspection and a business suspension [1]. - The store claimed the rat came from an adjacent establishment and stated that all affected food items were removed, with daily sanitation measures being implemented [4]. - Previous incidents were noted, including a complaint in May 2024 from a consumer in Zhongshan, Guangdong, regarding a live rat found in the food area, which led to regulatory intervention and mandated rectification [5]. Group 2: Regulatory Response - The local market supervision authority plans to enhance food safety oversight to ensure public health protection [2]. - Yang Guo Fu Spicy Hot Pot was listed as the top entity on the black list in the 2024 annual offline dining institution rankings by Hei Mao Complaints, indicating ongoing issues with food safety [6].

Financial Performance - For the year ended December 31, 2024, the company reported revenue of HKD 367.7 million, an increase of 3.3% from HKD 355.8 million in 2023[3]. - The profit attributable to equity holders of the company for 2024 was HKD 1.8 million, a significant recovery from a loss of HKD 18.8 million in 2023[3]. - Basic earnings per share for 2024 was HKD 0.16, compared to a loss per share of HKD 1.65 in the previous year[10]. - The company's gross profit for 2024 was HKD 146.8 million, up from HKD 139.3 million in 2023, reflecting a gross margin improvement[8]. - The total comprehensive expense for the year was HKD 1.999 million, a significant improvement from HKD 23.1 million in 2023[10]. - The company reported a pre-tax profit of HKD 10,281,000 for 2024, compared to a pre-tax loss of HKD 17,285,000 in 2023, marking a turnaround[47]. - The company's net profit attributable to equity holders was HKD 1,805,000 for 2024, recovering from a loss of HKD 18,841,000 in 2023[68]. - The company's profit for the year was approximately HKD 1.2 million, a turnaround from a loss of about HKD 20.0 million in the previous year[119]. Revenue Breakdown - The group's total revenue for the year ended December 31, 2024, was HKD 367,695,000, representing an increase of 3.5% from HKD 355,803,000 in 2023[37]. - Service revenue accounted for HKD 269,225,000 in 2024, up from HKD 261,969,000 in 2023, reflecting a growth of 2.4%[37]. - Trade revenue increased to HKD 96,892,000 in 2024 from HKD 91,357,000 in 2023, marking a rise of 6.0%[37]. - Revenue from the China market was HKD 318,424,000 in 2024, contributing significantly to the overall revenue[39]. - Revenue from external customers in Hong Kong increased to HKD 23,957,000 in 2024 from HKD 17,415,000 in 2023, a growth of 37.5%[52]. - Revenue from external customers in China was HKD 318,424,000 in 2024, slightly down from HKD 324,781,000 in 2023, a decrease of 1.1%[52]. Contractual Obligations - As of December 31, 2024, the total remaining contract value was approximately HKD 507.1 million, an increase from HKD 454.1 million in 2023[5]. - The total contract liabilities as of December 31, 2024, amounted to HKD 507,144,000, compared to HKD 454,086,000 in 2023, indicating a growth of 11.7%[43]. - The group expects to recognize revenue from performance obligations of HKD 507,144,000 over the next one to two years[43]. - The remaining contract total for the SLD division increased from approximately 250.6 million HKD to about 285.8 million HKD, while the SLL division's remaining contracts rose from about 114.5 million HKD to 146.4 million HKD[110]. Financial Position - The company held cash and bank balances of approximately HKD 140.9 million as of December 31, 2024, down from HKD 148.9 million in the previous year[6]. - The net asset value per share remained stable at approximately HKD 0.28 as of December 31, 2024, unchanged from the previous year[4]. - Total assets were valued at approximately HKD 497.4 million as of December 31, 2024, with current assets at HKD 382.3 million, representing a current ratio of 2.6 times[99]. - The current ratio as of December 31, 2024, was approximately 2.6 times, compared to 2.5 times as of December 31, 2023, indicating a stable liquidity position[127]. Cost Management - The financing costs decreased to HKD 3,574,000 in 2024 from HKD 4,431,000 in 2023, a reduction of 19.3%[59]. - The company's total employee costs decreased to HKD 150,282,000 in 2024 from HKD 158,983,000 in 2023[64]. - Sales expenses decreased by approximately 6.7%, from about HKD 20.8 million last year to HKD 19.4 million this year, due to efficiency improvements and cost-saving measures[115]. - Administrative expenses decreased by about 1.3%, from approximately HKD 107.2 million last year to about HKD 105.8 million this year, due to ongoing cost control measures[116]. Credit and Risk Management - The company reported a decrease in expected credit loss on trade receivables and contract assets, from HKD 24.7 million in 2023 to HKD 6.4 million in 2024[8]. - The expected credit loss under trade receivables and contract assets for 2024 was HKD 6,446,000, down from HKD 24,724,000 in 2023, indicating a significant improvement[47]. - The company has implemented a credit risk management policy requiring certain clients to provide upfront deposits of 10% to 20% of the total contract value[77]. Corporate Governance and Future Plans - The company is committed to maintaining high standards of corporate governance to ensure transparent operations and protect shareholder interests[149]. - The company plans to diversify its business by expanding into overseas markets and other sectors such as hotels and high-end membership clubs[95]. - The company plans to focus on "youthfulness, diversification, and internationalization" in its future development strategy, including establishing offices overseas and exploring new markets in Southeast Asia and the Middle East[124]. Market Conditions - The global economic environment remains uncertain, with the U.S. Federal Reserve cutting interest rates three times in 2024, impacting market conditions[87]. - China's real estate development investment growth rate declined by 10.6% year-on-year as of December 2024, indicating ongoing challenges in the sector[89]. - The company is actively monitoring geopolitical tensions and their potential impact on market conditions, particularly in the context of U.S.-China relations and the ongoing Russia-Ukraine conflict[87].

Financial Performance - Total revenue for the period increased by approximately 3.9% to about HKD 164.5 million, compared to HKD 158.4 million in the previous period[11] - Gross profit rose by approximately 5.8% to about HKD 63.9 million, up from HKD 60.4 million in the previous period, resulting in a gross margin increase from approximately 38.1% to 38.8%[11] - Net loss narrowed to approximately HKD 7.4 million from HKD 17.8 million in the previous period, attributed to reduced operating costs and impairment loss provisions[11] - Total comprehensive loss for the period was HKD 8,264,000, compared to HKD 23,563,000 in the same period last year, indicating a reduction of 64.9%[63] - The company reported a loss before tax of HKD 4,588,000, significantly improved from a loss of HKD 17,070,000 in the previous year[63] - Basic and diluted loss per share improved to HKD 0.54 from HKD 1.52 in the previous year[63] Revenue Breakdown - The company reported a total of HKD 101.0 million in revenue from residential projects, representing 61.4% of total revenue for the period[19] - The revenue breakdown by segment shows SLD generated HKD 99,811,000, SLL contributed HKD 39,583,000, and JHD accounted for HKD 25,120,000, totaling HKD 164,514,000 from external customers[76] - Service revenue for the same period was HKD 128,032,000, up from HKD 123,209,000, indicating a growth of 3.2%[74] - Trade revenue increased to HKD 35,740,000 from HKD 33,859,000, reflecting a growth of 5.5%[74] - Revenue from interior design services to related parties increased to HKD 3,610,000 for the six months ended June 30, 2024, compared to HKD 1,973,000 for the same period in 2023[99] Contractual Obligations - The total remaining contract amount as of June 30, 2024, was approximately HKD 538.3 million, compared to HKD 454.1 million as of December 31, 2023[12] - The remaining contract total for residential projects was HKD 366.5 million, accounting for 68.1% of the total remaining contracts[16] - The remaining contracts for commercial projects totaled HKD 51.1 million, representing 9.5% of the total remaining contracts[16] - The total new contracts signed during the period decreased by approximately 14.2% from about HKD 340.7 million to about HKD 292.3 million, primarily due to the absence of a significant contract in the hotel and catering sector[16] Market Conditions - The domestic real estate market in China saw a cumulative development investment decrease of 10.1% year-on-year as of June 30, 2024[8] - Funding for real estate development companies decreased by 22.6% during the same period[8] - Approximately 61 Chinese listed companies in the real estate sector forecasted mid-term performance, with 41 expecting net losses, including 21 that shifted from profit to loss[10] Cost Management - Sales expenses decreased by about 12.5% to approximately HKD 7.7 million, mainly due to optimized human resources[28] - Administrative expenses reduced by about 8.8% to approximately HKD 51.5 million, driven by ongoing cost control measures[28] - The company continues to focus on cost management, with administrative expenses reduced to HKD 51,507,000 from HKD 56,512,000[63] Cash Flow and Liquidity - Cash and bank balances as of June 30, 2024, were approximately HKD 99.6 million, down from HKD 148.9 million as of December 31, 2023, primarily due to slower cash inflows and loan repayments[12] - The current ratio as of June 30, 2024, is approximately 2.6, slightly up from 2.5 on December 31, 2023[31] - The company incurred a net cash outflow from financing activities of HKD 21,535,000, compared to HKD 12,059,000 in the previous year[67] Debt and Equity - The total debt ratio as of June 30, 2024, is approximately 4.3%, down from 6.0% on December 31, 2023[31] - The net debt ratio is about 6.7% as of June 30, 2024, compared to 9.9% on December 31, 2023[31] - The company’s total equity as of June 30, 2024, was HKD 297,552,000, a decrease from HKD 304,538,000 at the beginning of the year[65] Employee and Compensation - The total employee compensation for the period was approximately HKD 82.2 million, down from HKD 87.8 million in the previous period[39] - The company had 399 full-time employees as of June 30, 2024, a decrease from 409 employees as of June 30, 2023[39] Share Options and Capital Structure - The total number of issued shares as of June 30, 2024, is 1,141,401,000[47] - The total number of share options outstanding as of January 1, 2024, was 28,694,400[50] - The company has not exercised any share options during the reporting period[102] Legal and Compliance - The company recognized a provision of HKD 2,240,000 related to legal disputes, which may impact future financial performance[84] - The company has no contingent liabilities as of June 30, 2024, compared to approximately HKD 1.7 million due to legal disputes on December 31, 2023[33] - The external auditor conducted a review of the interim financial statements, resulting in an unqualified review report[61]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 164.5 million, an increase of 3.0% compared to HKD 158.4 million for the same period in 2023[1]. - The group reported a loss of HKD 7.4 million for the six months ended June 30, 2024, significantly improved from a loss of HKD 17.8 million in the same period of 2023[1]. - Basic loss per share improved to HKD 0.54 from HKD 1.52 year-on-year[3]. - Gross profit for the period was HKD 63.9 million, compared to HKD 60.4 million in the previous year, reflecting a gross margin improvement[2]. - The company reported a loss before tax of HKD 4,588,000 for the six months ended June 30, 2024, a significant improvement from a loss of HKD 17,070,000 in the same period of 2023[12]. - The company reported a total income of HKD 164.5 million for the current period, with residential projects accounting for 61.4% of total revenue[39]. - The company reported a loss of approximately HKD 7.4 million, significantly down from HKD 17.8 million in the previous period, with basic loss per share improving to about HKD 0.54[50]. Revenue Breakdown - Service revenue for the six months ended June 30, 2024, was HKD 128,032,000, up from HKD 123,209,000 in 2023, indicating a growth of about 3.0%[9]. - Trade revenue increased to HKD 35,740,000 for the six months ended June 30, 2024, compared to HKD 33,859,000 in 2023, marking a growth of approximately 5.5%[9]. - The SLD segment generated HKD 99,811,000 in revenue, while SLL and JHD segments contributed HKD 39,583,000 and HKD 25,120,000, respectively, for the six months ended June 30, 2024[11]. - The SLD division contributed approximately 60.7% of the group's revenue, with a slight increase in revenue from about HKD 96.2 million to about HKD 99.8 million, a rise of about 3.7%[40]. - The SLL division's revenue increased by approximately 5.9% to about HKD 39.6 million, contributing around 24.0% to the group's total revenue[40]. - JHD contributed approximately 15.3% of the total revenue for the period, with revenue slightly increasing by 1.2% to about HKD 25.1 million[41]. Assets and Liabilities - The total remaining contract amount as of June 30, 2024, was approximately HKD 538.3 million, up from HKD 454.1 million as of December 31, 2023[1]. - Cash and bank balances decreased to approximately HKD 99.6 million as of June 30, 2024, compared to HKD 148.9 million as of December 31, 2023[2]. - Total assets decreased to HKD 358.3 million as of June 30, 2024, from HKD 377.0 million as of December 31, 2023[4]. - The group’s net asset value per share was approximately HKD 0.27 as of June 30, 2024, slightly down from HKD 0.28 as of December 31, 2023[1]. - The group recognized estimated liabilities of approximately HKD 2,265,000 due to legal disputes as of June 30, 2024[28]. - Unsecured bank loans amounted to HKD 20,000,000 as of June 30, 2024, down from HKD 30,000,000 as of December 31, 2023[29]. Operational Efficiency - The company incurred administrative expenses of HKD 51,507,000 for the six months ended June 30, 2024, compared to HKD 56,512,000 in 2023, marking a reduction of approximately 8.8%[12]. - Selling expenses decreased by approximately 12.5% to about HKD 7.7 million, due to optimized human resources[47]. - The group experienced a significant decrease in contracts signed in the hotel, restaurant, and hospitality sector, which had a one-time contract of approximately HKD 41.9 million in the previous period[37]. Market and Strategic Focus - The group continues to focus on expanding its market presence in the residential sector through its various brands, including Steve Leung Design and Steve Leung Lifestyle[10]. - The company plans to diversify its business in the hotel and restaurant sectors and explore potential acquisition opportunities to enhance service value and expand its customer base[51]. - The group is actively seeking diversification opportunities to expand revenue sources and will regularly assess market risks[58]. Legal and Compliance - The group has not reported any impact from the recent amendments to accounting standards on its consolidated financial statements[8]. - The company recognized a provision of HKD 2,240,000 related to a legal dispute during the period, reflecting ongoing operational challenges[16]. - The restricted bank balance as of June 30, 2024, was approximately HKD 2.265 million, up from HKD 1.723 million as of December 31, 2023, due to legal disputes[30]. Employee and Compensation - As of June 30, 2024, the group had 399 full-time employees, a decrease from 409 employees as of June 30, 2023[60]. - Total employee compensation during the period was approximately HKD 82.2 million, down from HKD 87.8 million in the previous period, primarily due to resource reallocation and cost optimization[60].

Financial Performance - The overall revenue of the company continued to decline compared to the previous year, reflecting the complex economic environment and increased competition [7]. - The company's revenue decreased by approximately 6.6% compared to the previous year due to cautious consumer purchasing attitudes and a slowdown in the domestic real estate industry [24]. - The group recorded total revenue of approximately HKD 355.8 million, a decrease of about 6.6% from HKD 381.0 million in the previous year [28]. - Total revenue decreased from approximately HKD 381.0 million in 2022 to approximately HKD 355.8 million in 2023, with service revenue dropping from HKD 280.4 million to HKD 262.0 million, accounting for about 73.6% of total revenue [42]. - The company recorded a loss of approximately HKD 20.0 million for the year, a significant improvement from a loss of HKD 59.9 million in the previous year [54]. Profitability and Cost Management - The gross profit margin increased, and operating cash flow returned to positive levels, indicating successful internal adjustments and cost reduction efforts [8]. - The gross profit margin improved from 36.6% in the previous year to 39.2% in the current year, attributed to cost reduction measures [24]. - Loss for the year narrowed significantly from HKD 59.9 million to HKD 20.0 million, attributed to cost-cutting measures and reduced foreign exchange losses [28]. - The company continues to focus on cost reduction and efficiency improvement measures to enhance profitability [32]. - Selling expenses decreased by approximately 21.5% from HKD 26.5 million to HKD 20.8 million, attributed to efficiency measures and cost-saving initiatives [51]. Contracts and Market Position - The new contract amount and remaining contract amount increased compared to the end of the previous year, demonstrating market trust and support for the company's future development [8]. - The total remaining contract amount increased to approximately HKD 454.1 million as of December 31, 2023, compared to HKD 429.5 million in the previous year [25]. - New contracts signed in 2023 totaled approximately HKD 559.8 million, up from HKD 551.8 million in 2022 [45]. - The company has established business relationships with several well-known enterprises in the hotel, private club, and catering industries to diversify its business and reduce reliance on the residential market [25]. Strategic Focus and Future Outlook - The company aims to enhance innovation and competitiveness by providing higher quality and personalized professional design services [8]. - Future development will emphasize improving design creativity and adapting to market dynamics while investing in new ideas and technologies [12]. - The company has a cautious yet optimistic outlook for the upcoming year, focusing on exploring strategic partnerships and new investment opportunities [60]. - The outlook for 2024 remains cautious, with expectations of continued downward pressure on the real estate market and potential declines in sales [58]. Corporate Governance - The company is committed to maintaining a high level of corporate governance to ensure stable, effective, and transparent operations, attracting investments and protecting shareholder interests [115]. - The corporate governance policies are based on the Corporate Governance Code as outlined in the Listing Rules of the Stock Exchange, adopted in January 2017 [115]. - The company has appointed independent non-executive directors with extensive experience in corporate governance and financial management [105]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2023 [122]. Risk Management - The company has established a risk management framework that includes a clear governance structure and reporting mechanisms to manage risks across its business segments [176]. - The risk management committee identified and prioritized risk factors affecting the company's ability to achieve its business objectives, developing response strategies accordingly [176]. - The company has implemented a governance policy that includes regular training and professional development for directors and senior management [156]. Employee and Operational Efficiency - The total employee compensation for the year was approximately HKD 171.2 million, a decrease from HKD 224.8 million in the previous year, due to ongoing cost-saving measures [79]. - The company had 400 full-time employees as of December 31, 2023, down from 442 on December 31, 2022 [79]. - The company implemented various internal efficiency measures, including optimizing staff structure and developing an internal electronic platform to improve overall efficiency [24]. Shareholder Communication and Dividend Policy - The company emphasizes the importance of transparent communication with shareholders, maintaining high transparency through annual reports and other corporate announcements [186]. - The company aims to maintain sufficient operating capital while providing stable and sustainable returns to shareholders through its dividend policy [190]. - Dividend payments are contingent upon the company's ability to receive dividends from its Chinese subsidiaries, which are subject to specific legal and accounting regulations [190].