Financial Performance - For the fiscal year ending December 31, 2023, the company reported a revenue of HKD 355.8 million, a decrease of 6.3% from HKD 381.0 million in 2022[2]. - The net loss for the year was HKD 20.0 million, significantly improved from a net loss of HKD 59.9 million in the previous year, representing a reduction of approximately 66.7%[3]. - The basic loss per share improved to HKD 1.65 from HKD 5.47, indicating a recovery in financial performance[4]. - The company reported a total operating loss before tax of HKD 17,285,000 for 2023, compared to a loss of HKD 59,726,000 in 2022, showing an improvement of approximately 71.1%[40]. - The group reported a net loss of HKD 17,285,000 before tax for 2023, compared to a loss of HKD 59,726,000 in 2022, showing an improvement in financial performance[53]. - The company reported a net loss of HKD 18,841,000 for the year 2023, compared to a net loss of HKD 62,441,000 in 2022, indicating a significant improvement[59]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, was HKD 355,803,000, an increase from HKD 381,002,000 in 2022, representing a decrease of approximately 6.6%[32]. - Service revenue amounted to HKD 261.97 million in 2023, down from HKD 280.39 million in 2022, reflecting a decline of 6.6%[30]. - Trading revenue for the year was HKD 91.36 million, compared to HKD 97.72 million in the previous year, indicating a decrease of 6.5%[30]. - Revenue from the Hong Kong market in 2023 was HKD 17,415,000, down from HKD 23,628,000 in 2022, a decrease of approximately 26.4%[33]. - Revenue from the China market for 2023 was HKD 324,781,000, compared to HKD 330,045,000 in 2022, showing a slight decrease of about 1.6%[33]. - The service revenue decreased from approximately HKD 280.4 million to about HKD 262.0 million, representing about 73.6% of total revenue[109]. Cost Management - The company experienced a significant reduction in administrative expenses, which decreased to HKD 107.2 million from HKD 136.5 million, a decline of approximately 21.5%[3]. - The company's administrative expenses totaled HKD 107,238,000 for 2023, down from HKD 136,519,000 in 2022, representing a decrease of approximately 21.5%[40]. - Selling expenses decreased by approximately 21.5%, from approximately HKD 26.5 million to approximately HKD 20.8 million[116]. - The gross profit margin improved from 36.6% in the previous year to 39.2% in the current year, reflecting the effectiveness of cost-reduction measures[88]. - The gross profit for the year was HKD 139,269,000, up from HKD 139,250,000 in the previous year, reflecting a marginal increase of 0.014%[40]. Assets and Liabilities - Total assets decreased from HKD 365,213 million in 2022 to HKD 347,406 million in 2023, a decline of approximately 4.4%[6]. - Current assets decreased from HKD 253,499 million in 2022 to HKD 226,574 million in 2023, a decline of about 10.6%[6]. - Total liabilities decreased from HKD 157,870 million in 2022 to HKD 150,449 million in 2023, a decline of about 4.5%[7]. - Shareholders' equity decreased from HKD 326,421 million in 2022 to HKD 304,538 million in 2023, a decrease of approximately 6.7%[7]. - The company reported a decrease in trade receivables from HKD 174,515 million in 2022 to HKD 136,106 million in 2023, a decline of approximately 22%[6]. Market Conditions - The group faced challenges in economic recovery due to rising raw material and transportation costs, impacting overall market conditions[80]. - The National Bureau of Statistics reported that the real estate market index peaked at 94.71 in April 2023 but fell to 93.36 by December 2023, indicating a declining market sentiment[84]. - The government implemented nearly 600 regulatory policies across over 200 provinces and cities in 2023 to stabilize the real estate market[85]. - In 2023, the company's revenue decreased by approximately 6.6% compared to the previous year due to a cautious consumer attitude towards home purchases[87]. Future Outlook - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[3]. - The group aims to explore new market development opportunities and strategic partnerships to enhance growth prospects[126]. - The group has a cautious yet optimistic outlook for the real estate market in 2024, focusing on long-term stability and growth[124]. - The company actively expanded into hotel, private club, and dining sectors to diversify its business and reduce reliance on the residential market[91]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to attract investment and protect shareholder interests[149]. - The audit committee has reviewed the financial data and annual performance of the group for the year[151]. - The board does not recommend the payment of a final dividend for the current year[146].

Real Estate Market Performance - As of June 30, 2023, the cumulative sales area of commercial housing was 595.15 million square meters, a decrease of 5.3% compared to the same period in 2022[7]. - The sales revenue of commercial housing during the same period was RMB 630.92 billion, reflecting a modest increase of 1.1% year-on-year[7]. - Real estate development investment amounted to RMB 585.50 billion, down 7.9% from the previous period, with residential investment decreasing by 7.3% to RMB 444.39 billion[7]. - The new construction area of residential properties saw a significant decline of 24.9%, totaling approximately 360 million square meters[7]. - The real estate development prosperity index was recorded at 94.06 in June 2023, indicating a challenging environment for the industry[11]. - Funding for real estate developers decreased by 9.8% compared to the previous period, highlighting ongoing financial difficulties[13]. - The scale of domestic and foreign debt maturities for the real estate sector in 2023 is estimated at RMB 1.99 trillion and USD 77 billion, representing increases of 13.3% and 31.4% respectively from 2022[13]. - The number of defaulted bonds in the real estate sector reached 188, with a total outstanding amount of RMB 212.38 billion as of June 9, 2023[13]. - Consumer sentiment towards property purchases remains cautious, impacting the indoor design industry negatively[14]. - The hotel industry is undergoing transformation, with many operators exiting the market due to financial difficulties, affecting related interior design business[14]. Company Financial Performance - Total revenue decreased by approximately 10.9% to about HKD 158.4 million, down from HKD 177.8 million in the previous period[17]. - Gross profit increased by approximately 9.0% to about HKD 60.4 million, resulting in a gross margin rise from approximately 31.2% to about 38.1% due to effective cost control measures[17]. - The net loss narrowed to approximately HKD 17.8 million from a net loss of HKD 36.1 million in the previous period[17]. - The total remaining contract amount increased to approximately HKD 526.5 million as of June 30, 2023, up from HKD 429.5 million as of December 31, 2022[19]. - Cash and cash equivalents were approximately HKD 111.4 million as of June 30, 2023, down from HKD 153.3 million as of December 31, 2022[17]. - The company maintained a current ratio of approximately 2.7 times, compared to 2.6 times at the end of the previous period[17]. - New contracts signed during the period totaled approximately HKD 340.7 million, compared to HKD 315.5 million in the previous period[19]. - The JHD brand's revenue decreased by approximately 35.6% compared to the previous period, significantly impacting overall revenue performance[22]. - The SLD division contributed approximately 60.7% of the group's revenue, down from 58.4% in the previous period, with revenue decreasing from approximately HKD 103.8 million to HKD 96.2 million, a decline of about 7.3%[24]. - The SLL division's revenue increased by approximately 5.4% to about HKD 37.4 million, contributing around 23.6% to the group's total revenue, up from 20.0% in the previous period[25]. - The JHD division's revenue significantly dropped by approximately 35.6% to about HKD 24.8 million, contributing about 15.7% to the group's revenue, down from 21.7% in the previous period[29]. - The group's total revenue decreased by approximately HKD 19.4 million or 10.9% to about HKD 158.4 million, primarily due to slowed project progress[30]. - The group's gross profit increased by approximately HKD 5.0 million or 9.0% to about HKD 60.4 million, with a gross profit margin rising to approximately 38.1% from 31.2% in the previous period[33]. - The group's trade receivables and contract assets impairment loss was approximately HKD 9.8 million, an increase from HKD 9.0 million in the previous period, due to increased uncertainty in customer payments[35]. - The group's selling expenses decreased by approximately 30.2% to about HKD 8.8 million, attributed to the reallocation of human resources and workforce reduction measures[38]. - The group's administrative expenses decreased by approximately 14.3% to about HKD 56.5 million, mainly due to ongoing cost control and workforce reduction measures[39]. - The group's financing costs increased by approximately 23.5% to about HKD 2.1 million, primarily due to rising bank loan interest rates[40]. - The group's loss for the period decreased from approximately HKD 36.1 million to about HKD 17.8 million, as cost savings exceeded the revenue decline[41]. Market Conditions and Consumer Sentiment - In July 2023, new loans and social financing in China reached a five-year low, indicating weak consumer and investment confidence[43]. - The overall satisfaction of Chinese residents regarding living conditions decreased to 72.3 points in 2023, down 2.7 points from 2022, reflecting a growing demand for improved living quality[46]. - Credit risk remains high, with a reported decline of over 30% in contract sales among China's top 100 real estate companies in July 2023[54]. - The company aims to expand its market share in the interior design and furnishing industry in China by investing in talent, processes, and technology[47]. - The company is actively seeking opportunities to diversify its business and broaden its customer base to enhance revenue sources[46]. - The company anticipates that favorable policies in the real estate market will continue to be implemented to restore market confidence[45]. - The company recognizes the significant challenges in the interior design industry but is confident in overcoming them through quality service and innovative design solutions[46]. Credit and Receivables Management - As of June 30, 2023, total trade receivables amounted to approximately HKD 252.1 million, a decrease from HKD 263.9 million as of December 31, 2022[57]. - Contract assets increased to approximately HKD 97.7 million from HKD 83.5 million as of December 31, 2022, resulting in total trade receivables and contract assets of approximately HKD 349.8 million, up from HKD 347.4 million[57]. - Cumulative credit loss provisions reached approximately HKD 113.0 million, up from HKD 106.1 million as of December 31, 2022, with an average loss rate of approximately 32.3%[58]. - The average loss rate for trade receivables was approximately 37.8%, an increase from 33.9% as of December 31, 2022[58]. - The expected credit loss on trade receivables and contract assets amounted to HKD 9,758,000, indicating a focus on managing credit risk[144]. Employee and Corporate Governance - The company has approximately 409 full-time employees as of June 30, 2023, down from 550 employees a year earlier, with total employee compensation of approximately HKD 87.8 million[63]. - The total employee compensation decreased from HKD 122.1 million in the previous period, primarily due to resource reallocation and cost optimization[63]. - The company has not made any significant investments or acquisitions during the reporting period[64][65]. - The board does not recommend the distribution of an interim dividend for the period[69]. - The company is actively seeking opportunities to diversify project types and business to expand revenue sources[61]. - Management will continue to monitor the recoverability of trade receivables and contract assets in response to the increasingly uncertain market conditions[59]. - The company has maintained sufficient public float as required by the listing rules as of the report date[95]. - The company has adopted and complied with the corporate governance code as per the listing rules[98]. - The audit committee, composed of three independent non-executive directors, has reviewed and discussed the interim performance of the group[101]. - The company is committed to maintaining high standards of corporate governance to attract investment and protect shareholder interests[97]. Share Options and Capital Management - As of June 30, 2023, Eagle Vision Development Limited holds 598,500,000 shares, representing 52.44% of the company's issued share capital[73]. - Sino Panda Group Limited owns 256,500,000 shares, accounting for 22.47% of the company's issued share capital[73]. - The total number of shares issued by the company as of June 30, 2023, is 1,141,401,000[73]. - The company has a pre-IPO share option plan that was adopted on June 11, 2018, aimed at recognizing contributions from senior management and employees[79]. - The exercise price for shares under the pre-IPO share option plan is set at 50% discount from the IPO price, amounting to HKD 0.44[80]. - A total of 28,694,400 share options were granted under the pre-IPO share option plan, with no options exercised or forfeited during the period[85]. - The maximum number of shares that may be issued upon exercise of all options granted under the pre-IPO share option plan is capped at 10% of the shares issued as of the listing date, which is 114,000,000 shares[81]. - The company has not granted or agreed to grant any other share options under the pre-IPO share option plan during the reporting period[85]. - The company has no knowledge of any other individuals holding shares or related interests apart from the major shareholders as of June 30, 2023[78]. - The company’s board has the discretion to grant options to any eligible person under the share option plan during its duration[86]. - The company has a maximum limit of 30% for the total number of shares that can be issued upon full exercise of stock options granted under the stock option plan[88]. - The total number of shares that may be issued upon exercise of all stock options granted under the stock option plan cannot exceed 10% of the total number of shares issued at the time of listing, which is approximately 114,000,000 shares[88]. - Any stock options granted to directors, key executives, or major shareholders must be approved by independent non-executive directors[89]. - The stock option plan is valid for a period of 10 years starting from June 11, 2018, with no stock options granted, exercised, canceled, or lapsed during this period[91]. - The options can be exercised at any time after acceptance and must be exercised within 10 years from the date they are granted[91]. - The company has a policy of forfeiting options granted to employees who have resigned, as evidenced by the forfeiture of 121,200 options during the reporting period[189]. - The share option plan was adopted to recognize contributions made by senior management, employees, and other contributors to the company's development[186]. - The company has replaced the previous share swap plan with the current share option plan, terminating all rights and claims under the former plan[186].

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） （股 份 代 號：2262） 截 至2023年6月30日 止 六 個 月 期 間 的 中 期 業 績 公 告 財 務 摘 要 截至6月30日止 六個月期間 2023年 2022年 （未經審核） （未經審核） 業績： 期內收入（百萬港元） 158.4 177.8 期內虧損（百萬港元） (17.8) (36.1) 每股基本虧損（港仙） (1.52) (3.24) 資產價值淨額： 於2023年6月30日，本 集 團 的 每 股 資 產 價 值 淨 額 約 為0.28港 元（2022 年12月31日：0.30港 元）。 剩 餘 合 同 總 額： 於2023年6月30日，本集團的剩餘合同總額約為526.5百萬港元（2022 年12月31日：429 ...

Financial Performance - The company reported a challenging year due to the COVID-19 pandemic, with significant impacts from the Omicron variant and related lockdowns, resulting in no profits for the year[10]. - The company recorded total revenue of approximately HKD 381.0 million for the year, a decrease of about 16.3% compared to HKD 455.0 million in the previous year[31]. - Gross profit fell to approximately HKD 139.3 million, down about 26.3% from HKD 188.9 million, resulting in a gross margin decline from approximately 41.5% to 36.6%[31]. - The company reported a loss of approximately HKD 59.9 million for the year, compared to a profit of about HKD 1.6 million in the previous year, primarily due to COVID-19 disruptions[31]. - The company's total assets were valued at approximately HKD 523.1 million as of December 31, 2022, down from HKD 649.8 million a year earlier[32]. - The company does not recommend the distribution of a final dividend for the year, compared to a special dividend of HKD 0.05 per share in the previous year[32]. - The company's total revenue decreased by approximately 74.0 million HKD or 16.3% to about 381.0 million HKD from the previous year's 455.0 million HKD[44]. - The gross profit decreased by approximately 49.6 million HKD or 26.3% to about 139.3 million HKD, with a gross profit margin of approximately 36.6% compared to 41.5% in the previous year[44]. - The company reported a basic loss per share of approximately 5.47 HK cents, a decrease of about 5.73 HK cents compared to a profit of 0.26 HK cents in the previous year[55]. Market Conditions - The real estate sector faced increased pressure from regulatory measures aimed at curbing speculation and limiting developer debt, particularly under the "three red lines" policy[10]. - In 2022, the top 100 real estate developers in China recorded sales of RMB 7.6 trillion, a decline of 41.3% compared to 2021[26]. - China's GDP growth in 2022 was only 3%, marking the second lowest growth rate in nearly half a century[26]. - The Chinese government announced a series of measures in November 2022 to stabilize the real estate sector, including lowering the minimum mortgage rates and hinting at relaxing the "three red lines" policy[26]. - The company anticipates a rebound in GDP growth to 5% in 2023, supported by incentives for the real estate sector and a more relaxed financing environment[27]. - In 2023, the residential market in China is showing signs of improvement, with new residential sales area increasing by over 20% year-on-year during the New Year holiday, particularly in Beijing, Shanghai, and Guangzhou, which saw increases of 80%, 131%, and 74% respectively[58]. Strategic Initiatives - Despite the difficulties, the company remains cautiously optimistic, noting that the worst may be over as anti-epidemic measures have been lifted, injecting new vitality into the economy[11]. - The company emphasizes its commitment to high-quality and sustainable development, aligning with its long-term growth strategy[11]. - The company aims to expand its market presence beyond China, inspired by the concept of "design without boundaries"[15]. - The company plans to expand its design brand "Si Lu Design" to cater to the growing mid-to-high-end residential market in China[30]. - The company is actively seeking opportunities to diversify its project types and business to expand revenue sources[72]. - The company plans to leverage its brand strength to capitalize on the growing importance of interior design as a differentiating factor in the market[27]. Design and Innovation - The company has achieved recognition as one of the largest design firms in Asia, with notable projects including the McDonald's CUBE concept, which won the DFA Asia Design Award[14]. - The company aims to provide practical solutions through design, ensuring that projects enhance the quality of life, work, or entertainment for clients and end-users[14]. - The company has established various design services, including hotel design and health-focused interior design, to cater to diverse market needs[21]. - The company has been awarded the WELL Health-Safety Rating for its headquarters office in Hong Kong, emphasizing its commitment to health and wellness in design[20]. - The company has a commitment to innovation in design and architecture, as evidenced by its leadership roles in various industry committees[85][92]. Corporate Governance - The company is committed to maintaining a high level of corporate governance to ensure stable, effective, and transparent operations, which is essential for attracting investments and protecting shareholder interests[116]. - The board consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors[123]. - The company held only two regular board meetings during the year, deviating from the corporate governance code which recommends at least four meetings annually[116]. - The management team is led by experienced professionals, with the board retaining decision-making authority on significant matters, including overall strategy and budget[122]. - The company has adopted a corporate governance manual to comply with the corporate governance code, which is available on its website[116]. - The board has established various committees to oversee specific responsibilities, ensuring effective management and compliance with applicable laws[118]. Risk Management - The company has established a clear governance structure and risk management system to manage risks across its business segments[175]. - The risk management committee identifies and prioritizes risk factors affecting business objectives, developing response strategies accordingly[176]. - The company is closely monitoring foreign exchange risks and has no hedging arrangements in place for foreign currencies or interest rates[65]. - The company has engaged independent consultants to improve internal control measures and assist in ongoing monitoring of the internal control system[175]. - The Risk Management Committee held one meeting this year and reviewed the group's internal risk management policies and procedures, including market, operational, and legal risks[160]. Community and Social Responsibility - The pandemic highlighted the importance of nurturing the next generation, leading to the establishment of the Leung Scholarship to support overseas study programs focused on design[11]. - The company is actively involved in community service and industry development through various associations and committees[85][86]. Employee and Leadership - The total number of full-time employees decreased to approximately 442 as of December 31, 2022, down from 562 in the previous year, with total employee compensation amounting to approximately HKD 224.8 million, a decrease from HKD 233.7 million[76]. - The company has a strong leadership team with over 30 years of experience in architecture and interior design, including CEO Mr. Hsiao and CFO Mr. Yip[88][89]. - The financial director, Ms. Gao, has over 15 years of experience in auditing, accounting, financing, and corporate governance, enhancing the company's financial oversight[108].

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） （股 份 代 號：2262） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 財 務 摘 要 截 至12月31日 止 年 度 2022年 2021年 （經 審 核） （經 審 核） 業 績： 收 入（百 萬 港 元） 381.0 455.0 年 內（虧 損）溢 利（百 萬 港 元） (59.9) 1.6 本 公 司 股 權 持 有 人 應 佔 年 內（虧 損） 溢 利（百 萬 港 元） (62.4) 2.9 財 務 資 料： 每 股（虧 損）盈 利（港 仙） ...

Financial Performance - Total revenue decreased by approximately 16.4% to about HKD 177.8 million, compared to HKD 212.8 million in the same period last year[16]. - Gross profit fell by 30.6% to approximately HKD 55.4 million, down from HKD 79.8 million in the previous period, resulting in a gross margin decline from about 37.5% to 31.2%[16]. - The company recorded a net loss of approximately HKD 36.1 million, compared to a profit of HKD 4.1 million in the same period last year[16]. - The company reported a pre-tax loss of HKD 34,847,000 for the six months ended June 30, 2022, compared to a profit in the same period of the previous year[163]. - The company reported a loss attributable to equity holders of HKD 36,931,000 for the six months ended June 30, 2022, compared to a profit of HKD 3,609,000 in the same period of 2021, indicating a significant decline in performance[183]. - Basic loss per share for the period was approximately HKD 3.24, a decrease from a profit of HKD 0.32 per share in the previous period[34]. - The total comprehensive loss for the period was HKD 47,298 thousand, significantly worse than the comprehensive income of HKD 7,911 thousand in 2021[107]. - The company reported a net loss of HKD 34,847,000 for the six months ended June 30, 2022, reflecting the impact of increased costs and reduced revenue[163]. Revenue Breakdown - Interior design service revenue fell by about 11.1% to HKD 141.1 million, accounting for approximately 79.4% of total revenue[22]. - Interior furnishing service revenue decreased by approximately 32.4% to HKD 35.5 million, representing about 20.0% of total revenue[23]. - Revenue from interior design services was HKD 141,125,000, while revenue from interior furnishing services was HKD 35,477,000, and product design services generated HKD 1,231,000[163]. - The group’s revenue from interior decoration services was HKD 35,477,000 for the six months ended June 30, 2022[146]. - The group’s revenue from product design services and related franchise income totaled HKD 29,899,000 for the six months ended June 30, 2022[146]. Contractual Obligations - The total remaining contract amount as of June 30, 2022, was approximately HKD 458.4 million, an increase from HKD 422.2 million as of December 31, 2021[16]. - The remaining contract amount for the interior design service segment was approximately HKD 313.6 million as of June 30, 2022, up from HKD 294.6 million at the end of 2021[22]. - The remaining contract amounts for interior design services increased from approximately HKD 294.6 million to HKD 313.6 million, and for interior furnishing services from HKD 127.6 million to HKD 144.8 million[30]. Cash Flow and Liquidity - Cash and bank balances were approximately HKD 181.1 million as of June 30, 2022, down from HKD 246.7 million as of December 31, 2021[17]. - The current ratio was approximately 2.8 times, compared to 3.6 times as of December 31, 2021[17]. - The group held net cash of approximately HKD 131.5 million, down from HKD 227.2 million as of December 31, 2021, primarily due to special dividends paid and slower collection of receivables[41]. - The current ratio as of June 30, 2022, was approximately 2.8, down from 3.6 as of December 31, 2021, indicating a strong liquidity position[42]. Operational Challenges - The company faced significant challenges due to COVID-19, with multiple projects being delayed, suspended, or terminated[14]. - The company’s operations in Hong Kong and China were affected by extensive preventive control and quarantine measures, impacting project timelines[14]. - The overall performance was impacted by a decrease in new project signings and project progress delays due to the COVID-19 pandemic[26]. - Trade receivables and contract assets impairment losses increased to approximately HKD 9.0 million from HKD 5.0 million in the previous period, primarily due to increased uncertainty in customer payment situations[31]. Employee and Administrative Expenses - The total employee compensation for the period was HKD 122.1 million, an increase from HKD 116.7 million in the previous period, primarily due to higher average salaries[54]. - Administrative expenses rose to approximately HKD 78.5 million, an increase of about 9.2% from HKD 71.9 million[33]. Future Outlook and Strategy - The company remains optimistic about the long-term development of the Chinese real estate industry despite current economic challenges and intends to focus on retaining and acquiring customers[37]. - The company is actively seeking opportunities to diversify its project types and business to expand revenue sources[52]. - The company plans to focus on expanding its market presence and enhancing its service offerings in the upcoming periods[178]. Share Options and Corporate Governance - The company has a total of 28,815,600 share options granted under the pre-IPO share option scheme as of June 30, 2022[87]. - The exercise price for the share options is set at HKD 0.44, which is a 50% discount from the median price at the time of the IPO[82]. - The board has the discretion to grant options to qualified individuals, including executive directors and employees, to incentivize contributions to the company's growth[88]. - The company aims to attract and retain experienced personnel through the share option plan, which is designed to reward past contributions and encourage future performance[88]. - The company has adopted and complied with the corporate governance code as per the listing rules[103].

Financial Performance - The company reported a negative growth in sales for the first time since 2010, with financing for the top 100 real estate companies in China reaching a five-year low in 2021[23]. - The company anticipates continued challenges in the real estate market in 2022, with a focus on maintaining stability while seeking progress[25]. - The company acknowledges the impact of cautious attitudes from clients on revenue, new contracts, and project cash flow[23]. - The group recorded total revenue of approximately HKD 455.0 million, an increase of about 5.1% from the previous year's HKD 433.0 million[41]. - Profit attributable to equity holders dropped approximately 95.2% to about HKD 1.6 million from HKD 34.6 million in the previous year[41]. - The group's profit for the year was approximately HKD 1.6 million, a decrease of about HKD 33.0 million or approximately 95.4% compared to the previous year[71]. - Basic earnings per share for the year were approximately HKD 0.26, a decrease of about HKD 2.68 or 91.2% from the previous year[73]. - The company reported a significant increase in revenue, achieving a total of $XX million, representing a YY% growth compared to the previous year[101]. Revenue Breakdown - In 2021, the company's revenue from private residential projects increased to approximately HKD 31.6 million, representing a growth of about 7.8% from the previous year's HKD 29.3 million[38]. - Revenue from hotel and dining projects rose to approximately HKD 42.7 million, marking a growth of about 41.4% from the previous year's HKD 30.2 million[40]. - Revenue from commercial projects surged to approximately HKD 35.2 million, reflecting an increase of about 114.6% from the previous year's HKD 16.4 million[40]. - Revenue from interior design services increased to approximately HKD 338.8 million, accounting for about 74.5% of total revenue, up from 72.5%[46]. - Revenue from interior furnishing services decreased by approximately 6.3% to about HKD 108.9 million, representing about 23.9% of total revenue[49]. - The product design services segment generated revenue of approximately HKD 7.3 million, up from HKD 2.7 million in the previous year[51]. Strategic Initiatives - The company plans to leverage new growth points while aligning with health development policies in the industry[25]. - The company aims to create greater value for shareholders by exploring every business potential[26]. - The company established strategic cooperation with Hongxing Meikailong to enhance its influence in the private residential project market[38]. - The company aims to adapt to the competitive interior design market by focusing on quality and innovative design solutions[31]. - The company is actively seeking diversification opportunities to expand its revenue sources and enhance risk management strategies[86]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[101]. Market Conditions - The overall GDP growth in China was strong at 8.1% in 2021, despite challenges in the real estate sector[36]. - Financing for the top 100 real estate companies in China decreased by 26% to RMB 128.73 billion, marking the first negative growth in five years[36]. - The company anticipates ongoing impacts on performance due to increased material costs and global supply chain issues[60]. - The company aims to enhance market share and brand awareness amid market disruptions caused by the COVID-19 pandemic[75]. Corporate Governance - The company has maintained compliance with the corporate governance code, with the exception of holding only two regular board meetings instead of the required four due to the nature of its business[133]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2021[140]. - The company has established clear guidelines for management's authority, requiring board approval for significant transactions[139]. - The independent non-executive directors serve on various committees, including audit, remuneration, and nomination committees, ensuring oversight and accountability[142]. - The company regularly reviews its corporate governance practices to ensure compliance with relevant laws and regulations[134]. Risk Management - The company has established a risk management framework to identify, assess, and manage risks associated with achieving strategic objectives[193]. - The board is responsible for evaluating the nature and extent of acceptable risks in achieving the company's strategic goals[193]. - The company has adopted a corporate risk management system to provide effective risk identification and management solutions[193]. - The board confirmed its responsibility for preparing true and fair consolidated financial statements for the year[188]. - The company continues to adopt the going concern basis for preparing financial statements, with no significant uncertainties affecting its ability to continue as a going concern[188]. Employee and Compensation - The total employee compensation for the year was approximately HKD 233.7 million, an increase from HKD 188.7 million in the previous year, primarily due to government subsidies and increased discretionary bonuses[91]. - The company has approximately 562 full-time employees as of December 31, 2021, a slight increase from 560 in the previous year[91]. Investments - The company made significant investments in three funds: Cithara (HKD 30 million), Futec (USD 2.5 million), and Sino Opulence (USD 3.9 million), with an average return rate of 0.4%[92]. - The company’s investment in Cithara had a fair value of HKD 30.3 million as of December 31, 2021, with a return rate of 1.0%[92]. - The net proceeds from the global offering amounted to HKD 195 million, with various allocations planned for enhancing design services and IT systems[95]. - The company plans to utilize the unallocated net proceeds by the end of 2022 according to the proposed distribution[95].

Revenue and Growth - Total revenue increased by 13.9% to HKD 212.8 million, up from HKD 186.9 million in the previous period, driven by a 26.2% growth in new contract amounts [12]. - The remaining contract amount as of June 30, 2021, grew by 15.7% to HKD 571.0 million, compared to HKD 493.4 million on December 31, 2020 [12]. - The indoor design services segment's revenue rose to HKD 158.8 million, accounting for 74.6% of total revenue, with a remaining contract amount of HKD 333.9 million [15]. - The indoor furnishing services segment recorded a revenue increase of 10.8% to HKD 52.5 million, representing 24.7% of total revenue [16]. - Revenue for the six months ended June 30, 2021, was HKD 212,808,000, an increase from HKD 186,932,000 in the same period of 2020, representing a growth of approximately 13.0% [109]. - Service revenue increased to HKD 169,136,000, up from HKD 146,752,000, reflecting a growth of 15.3% year-over-year [129]. Financial Performance - The group's gross profit slightly decreased by about HKD 0.1 million or 0.1% to approximately HKD 79.8 million, with a gross profit margin of about 37.5% compared to 42.8% in the previous period [21]. - The group recorded other income of approximately HKD 5.4 million, compared to a loss of HKD 0.1 million in the previous period, mainly from fair value gains on financial assets and net exchange gains [26]. - The group's profit for the period was approximately HKD 4.1 million, a decrease of about HKD 2.3 million or 35.9% compared to HKD 6.4 million in the previous period [33]. - Basic earnings per share for the period were approximately HKD 0.32, a decrease of about HKD 0.21 or 39.6% from HKD 0.53 in the previous period [34]. - The pre-tax profit for the six months was HKD 11,197,000, down from HKD 14,128,000 in the previous year, reflecting a decline of approximately 20.5% [109]. - The net profit for the period was HKD 4,058,000, compared to HKD 6,433,000 in the prior year, a decrease of about 37.0% [109]. Cash and Liquidity - The company's cash and bank balances were approximately HKD 186.0 million as of June 30, 2021, down from HKD 275.3 million on December 31, 2020 [14]. - The net cash position decreased to approximately HKD 151.4 million as of June 30, 2021, down from HKD 256.5 million on December 31, 2020, primarily due to investments during the period [39]. - Cash used in operating activities was HKD (11,189,000) for the first half of 2021, compared to HKD (7,011,000) in the same period of 2020 [118]. - The company reported a net decrease in cash and cash equivalents of HKD 90,758,000, compared to a decrease of HKD 85,388,000 in the previous year [118]. - The company maintained a strong liquidity position with a current ratio of 3.1 as of June 30, 2021, compared to 3.4 on December 31, 2020 [40]. Expenses and Costs - Administrative expenses increased by approximately HKD 5.3 million or 8.0% to about HKD 71.9 million, primarily due to rising employee costs and the absence of government subsidies [31]. - The company’s financing costs were HKD 2,078,000, slightly up from HKD 2,059,000, indicating a marginal increase of about 0.9% [109]. - The company reported administrative expenses of HKD 71,915,000, an increase from HKD 66,637,000, representing a rise of approximately 7.3% [109]. Debt and Liabilities - The company's debt ratio and current ratio were maintained at low levels of 7.6% and 3.1 times, respectively [14]. - As of June 30, 2021, the total debt to total assets ratio was approximately 5.1%, up from 3.7% on December 31, 2020 [39]. - The company’s total liabilities increased to HKD 113,118,000, up from HKD 126,536,000, indicating a decrease in financial stability [111]. Shareholder Information - As of June 30, 2021, key executives held a total of 10,032,000 shares, representing approximately 0.88% of the company's issued share capital [59]. - The major shareholder Eagle Vision Development Limited holds 598,500,000 shares, representing 52.46% of the company's issued shares [61]. - Sino Panda Group Limited owns 256,500,000 shares, accounting for 22.48% of the total issued shares [61]. - The total number of issued shares as of June 30, 2021, is 1,140,918,000 [63]. Corporate Governance and Compliance - The company is committed to high standards of corporate governance to ensure transparency and protect shareholder interests [91]. - The company has complied with the corporate governance code and has established a securities trading code for directors and employees [92]. - The framework agreements with Jianghe Group and Jianghe Innovation for interior design services have proposed annual transaction caps of RMB 32,000,000 for three consecutive years, equivalent to approximately HKD 39,000,000 each year [95]. Future Outlook - The company anticipates market uncertainty in the second half of 2021 due to the unpredictable global environment and the impact of the COVID-19 Delta variant [35]. - The company plans to continue focusing on expanding its market presence and enhancing its service offerings in the interior design sector [138]. - The company is actively seeking diversification opportunities to expand its revenue sources [47].

SL D 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） 股份代號：2262 年度報告 2020 late 目錄 公司資料 2 主席報告 6 創始人報告 8 管理層討論及分析 12 董事及高級管理層履歷 25 企業管治報告 環境、社會及管治報告 董事會報告 獨立核數師報告 綜合損益及其他全面收益表 綜合財務狀況表 綜合權益變動表 綜合現金流量表 綜合財務報表附註 36 54 70 86 92 93 94 96 98 財務摘要 168 梁志天設計集團有限公司 年度報告 2020 葉玨鴻（首席財務官） 蕭文熙（首席執行官）（於2020年3月30日獲委任） 張樂庭（於2020年3月30日辭任） 公司資料 | --- | --- | |----------------------|---------------------------------------------------------------------------| | | | | 董事會 | 投資委員會 | | 執行董事 | 許興利（主席） | | 蕭文熙 ...

Financial Performance - For the six months ended June 30, 2020, the total revenue was HKD 186.9 million, with a gross profit of HKD 79.9 million, resulting in a gross margin of 42.8%[13] - Total revenue for the group decreased by approximately 15.6% to about HKD 186.9 million, while gross profit increased by approximately 3.4% to about HKD 79.9 million, resulting in a gross margin of approximately 42.8%[21] - Revenue for the six months ended June 30, 2020, was HKD 186,932 thousand, a decrease of 15.6% from HKD 221,468 thousand in 2019[92] - Gross profit increased to HKD 79,921 thousand, up 3.4% from HKD 77,335 thousand in the previous year[92] - The net profit for the period was HKD 6,433 thousand, a turnaround from a loss of HKD 8,461 thousand in the same period last year[92] Segment Performance - The interior design services segment generated revenue of HKD 138.7 million with a gross profit of HKD 62.4 million, achieving a gross margin of 45.0%[13] - The interior furnishing services segment reported revenue of HKD 47.4 million with a gross profit of HKD 16.8 million, resulting in a gross margin of 35.4%[13] - The interior design services segment revenue increased by approximately 5.9% to about HKD 138.7 million, accounting for approximately 74.2% of total revenue[16] - The interior furnishing services segment revenue decreased by approximately 46.9% to about HKD 47.4 million, representing about 25.4% of total revenue[19] Contracts and Backlog - The company maintained a stable level of new contracts signed during the first half of 2020 despite the challenges posed by COVID-19[10] - New contracts signed during the period totaled HKD 271.5 million, compared to HKD 372.0 million in the same period last year[15] - The remaining contract value at the end of the period was HKD 488.6 million, slightly down from HKD 498.5 million at the end of the previous period[15] - The total remaining contract amount for the interior design and furnishing services segments was approximately HKD 488.6 million as of June 30, 2020[21] Economic Environment - The company experienced a decline in the real estate market, with average sales area in 50 major cities in China dropping approximately 15% year-on-year[9] - The overall economic environment remains uncertain, impacting investment and consumer markets significantly[9] - The company acknowledges the challenges posed by the ongoing COVID-19 pandemic and the uncertainties related to the U.S. presidential election in November 2020[46] Cash Flow and Liquidity - Cash and cash equivalents were approximately HKD 185.5 million as of June 30, 2020, down from HKD 273.6 million at the end of 2019[24] - The cash conversion cycle increased to 160 days from 103 days in the previous period, primarily due to operational delays caused by city lockdowns[24] - The company's current ratio is 3.0 as of June 30, 2020, indicating strong liquidity[32] Cost Control and Expenses - Administrative expenses decreased by approximately 15.4% to about HKD 66.6 million due to cost control measures implemented during the challenging market conditions[23] - The group implemented strict cost control measures in response to the COVID-19 pandemic, reallocating certain employee costs and rental expenses to better assess segment performance[139] Shareholder Information - The board of directors does not recommend the distribution of an interim dividend for the period[48] - The total number of issued shares as of June 30, 2020, is 1,140,039,000[54] - The company has approximately 549 full-time employees as of June 30, 2020, a decrease from 603 employees a year earlier[41] Share Options and Corporate Governance - The company has adopted a pre-IPO share option scheme to recognize contributions from senior management and employees[61] - A total of 30,278,400 share options were granted under the pre-IPO share option plan, with no options exercised or cancelled during the reporting period[66] - The company emphasizes high standards of corporate governance to ensure effective operations and protect shareholder interests[79] Investment and Utilization of Proceeds - The net proceeds from the global offering amounted to HKD 195.0 million, with a planned allocation for various purposes as disclosed in the prospectus[84] - As of June 30, 2020, the total utilized net proceeds reached HKD 126.9 million, leaving HKD 68.1 million unutilized[84] - The unutilized net proceeds are expected to be fully utilized by the second quarter of 2021 according to the proposed allocation[84]