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].

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].