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]

Economic Environment and Market Outlook - The company faced a challenging economic environment in 2019, with revenue growth slowing due to domestic and international pressures, including intensified US-China trade friction [11]. - Looking ahead to 2020, the company anticipates a more concerning economic downturn, with potential negative impacts on the real estate, construction, and interior design markets [13]. - The tightening of property regulations and reduced credit opportunities for developers have negatively impacted the real estate market, affecting the demand for design services [24]. - The group plans to closely monitor the impact of the COVID-19 pandemic on its performance, as the overall market impact remains unpredictable [78]. Financial Performance - In 2019, the total revenue of the company was approximately HKD 504.7 million, a slight increase of about 0.2% compared to HKD 503.9 million in the previous year [30]. - The gross profit decreased by approximately 14.1% to HKD 194.6 million, with a gross margin decline of 6.3 percentage points to 38.6% [30]. - Net profit for the year was approximately HKD 40.1 million, down from HKD 58.0 million in the previous year, resulting in a basic earnings per share of HKD 3.39 compared to HKD 5.70 [30]. - The group recorded other losses of approximately HKD 3.1 million this year, compared to other income of HKD 4.7 million in the previous year, primarily due to exchange losses from the depreciation of the Renminbi [51]. - The group's profit decreased to approximately HKD 40.1 million, down 30.9% from HKD 58.0 million in the previous year, attributed to stable total revenue and increased expenses [55]. Revenue Segmentation - The revenue contribution from the interior decoration services segment increased significantly from approximately HKD 119.1 million to HKD 176.7 million, accounting for about 35.0% of total revenue [26]. - Interior design service revenue decreased from approximately HKD 380.3 million to HKD 325.1 million, accounting for 64.4% of total revenue compared to 75.5% in the previous year [34]. - Interior furnishing service revenue increased by 48.4% year-on-year to approximately HKD 176.7 million, representing 35.0% of total revenue, up from 23.6% [36]. Cost Management and Financial Stability - The company is implementing various cost-saving measures internally to enhance financial stability amid ongoing economic challenges [13]. - Administrative expenses rose from approximately HKD 129.8 million to HKD 137.3 million, representing an increase of 5.8% due to higher average salaries and increased rental and marketing expenses [53]. - The group has adopted a prudent credit policy to mitigate credit risk, primarily dealing with reputable institutional clients [72]. Strategic Initiatives and Future Plans - The company aims to maintain steady development and leverage opportunities from relaxed real estate policies in certain regions through the new brand "Si Lu," which seeks to expand its design services [11]. - The group aims to expand its business into the Guangdong-Hong Kong-Macao Greater Bay Area, which has a population of over 71 million and contributes USD 1.6 trillion to China's GDP [62]. - The company plans to utilize the unallocated net proceeds before the second quarter of 2021 according to the revised distribution [88]. - The company aims to enhance its interior design services and develop its professional capabilities, with an original allocation of HKD 67.0 million, of which HKD 24.1 million was utilized [88]. Governance and Management - The company has a strong focus on corporate governance, with Mr. Zeng providing advice on governance matters [110]. - The roles of the chairman and the CEO are clearly separated, with Mr. Xu Xingli serving as chairman and Mr. Xiao Wenxi as CEO, ensuring balanced power distribution [157]. - The company has established a governance manual to align with the corporate governance code, ensuring compliance and transparency [142]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2019 [151]. Risk Management - The company has established a risk management framework to identify, assess, and respond to risks affecting its business objectives [73]. - The Risk Management Committee reviewed the company's foreign exchange and credit risk measures this year [187]. - The Audit Committee reviewed the group's risk management and internal control systems, as well as the use of proceeds from the global offering [171]. Operational Efficiency and Growth - The company reported a significant increase in operational efficiency, with a 15% reduction in operational costs year-over-year [98]. - User data showed a growth of 20% in active users, reaching a total of 1.2 million users by the end of the fiscal year [99]. - The company anticipates a revenue growth of 10% for the next fiscal year, projecting total revenues to reach approximately $120 million [100]. - New product launches are expected to contribute an additional $15 million in revenue, with a focus on sustainable design solutions [101]. Employee and Talent Management - As of December 31, 2019, the total employee compensation, including director remuneration, was approximately HKD 211.1 million, an increase from HKD 204.0 million in the previous year, attributed to an increase in employee numbers and average salaries [82]. - The design directors have been promoted within the company, indicating a strong internal growth strategy and talent retention [130][131]. - The management team has a diverse background in finance, design, and project management, contributing to the company's strategic direction [119].

Financial Performance - Total revenue for the six months ended June 30, 2019, was approximately HKD 221.5 million, a slight decrease of 0.9% compared to HKD 223.5 million for the same period in 2018[15]. - Gross profit decreased by 28.2% to approximately HKD 77.3 million, with a gross margin decline of 13.2 percentage points to 34.9% from 48.1% in the previous period[15]. - The profit attributable to equity holders turned from approximately HKD 24.9 million to a net loss of approximately HKD 8.6 million[15]. - The total revenue for the interior design services segment decreased from HKD 184.8 million to HKD 131.0 million, accounting for approximately 59.2% of total revenue in the current period, down from 82.7% in the previous period[24]. - The gross profit for the interior design services segment dropped significantly, resulting in a loss of HKD 8.1 million compared to a profit of HKD 39.4 million in the previous period[24]. - The company reported a loss of HKD 8.5 million for the period, a decrease of HKD 33.7 million compared to a profit of HKD 25.2 million in the previous period[21]. - The company reported a loss attributable to equity holders of HKD 8,617,000 for the six months ended June 30, 2019, compared to a profit of HKD 24,939,000 in the same period of 2018[181]. - The basic loss per share was HKD (0.76), compared to earnings per share of HKD 2.92 in the previous year[98]. Revenue Segmentation - The interior furnishing services segment saw a revenue increase of 148.1%, rising to HKD 89.3 million, which constituted 40.3% of total revenue[26]. - Service revenue decreased to HKD 140,069,000 from HKD 195,730,000, representing a decline of 28.3% year-over-year[163]. - Revenue from product design services was HKD 1,161,000, contributing to the total revenue[169]. - Revenue from interior design services in China was HKD 111,039,000, while interior furnishing services generated HKD 86,895,000[163]. Market Outlook and Strategy - The overall market outlook remains uncertain due to tightening real estate financing channels, but urbanization and demand for quality interior design in certain regions are expected to support business stability[10]. - The company plans to launch a new brand "SL2.0" aimed at the mid-to-high-end real estate market, focusing on innovative and competitive interior design services[9]. - The company aims to leverage its established reputation in the high-end market to capture market share in the mid-to-high-end segment[10]. - The company plans to expand its business into the Greater Bay Area, which contributed USD 1.6 trillion to China's economy in 2018, anticipating strong demand for quality interior design services[35]. - The company aims to launch a new brand "Si Lu" to cater to the rapidly changing real estate market in China, which is expected to drive future performance[34]. Operational Metrics - The company has over 600 employees and has served more than 390 clients globally, enhancing its international reputation and experience[13]. - The total amount of new contracts signed by the company as of June 30, 2019, was HKD 372.0 million, representing a year-on-year increase of 32.6% from approximately HKD 280.5 million in the previous period[34]. - The remaining contract value for the interior design services segment at the end of the period was approximately HKD 328.7 million, expected to be realized based on project completion[24]. Financial Position - The company's debt-to-asset ratio as of June 30, 2019, was approximately 0.9%, a decrease from 3.4% on December 31, 2018[39]. - The company held net cash of approximately HKD 241.2 million as of June 30, 2019, compared to net cash of approximately HKD 263.2 million on December 31, 2018[39]. - The company's current ratio as of June 30, 2019, was 2.8, down from 4.2 on December 31, 2018, indicating strong liquidity[40]. - The total employee compensation for the period was approximately HKD 89.3 million, an increase from HKD 69.6 million in the previous period, attributed to an increase in employee numbers and average salaries[48]. Corporate Governance - The audit committee, composed of three independent non-executive directors, reviewed and discussed the interim performance of the group[92]. - The interim financial results were reviewed by Deloitte, confirming compliance with Hong Kong Accounting Standards[96]. - The company has adopted corporate governance practices in line with the listing rules and has complied with mandatory provisions during the reporting period[88]. - The company is committed to high standards of corporate governance to attract investment and protect shareholder interests[87]. Shareholder Information - As of June 30, 2019, Mr. Siu Man-Hei holds 10,032,000 shares, representing approximately 0.880% of the company's issued share capital[54]. - Eagle Vision Development Limited holds 598,500,000 shares, accounting for 52.50% of the company's issued share capital[56]. - Sino Panda Group Limited owns 256,500,000 shares, which is 22.50% of the company's issued share capital[56]. - Gloryeild Enterprises Limited has a stake of 171,000,000 shares, representing 15.00% of the company's issued share capital[56]. - Health Capital Enterprises Limited also holds 171,000,000 shares, equivalent to 15.00% of the company's issued share capital[56]. - The total number of issued shares as of June 30, 2019, is 1,140,039,000[59]. Lease and Financial Reporting - The company recognized additional lease liabilities and right-of-use assets amounting to HKD 46,287,000 as of January 1, 2019, following the application of HKFRS 16[146]. - The total lease liabilities recognized related to operating leases amounted to HKD 44,697,000 after adjustments for short-term leases and low-value assets[149]. - The company has applied new Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial performance for the period[115].