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].

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 2018 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 | 26 | | 企業管治報告 | 38 | | 環境、社會及管治報告 | 52 | | 董事會報告 | 62 | | 獨立核數師報告 | 78 | | 綜合損益及其他全面收益表 | 84 | | 綜合財務狀況表 | 85 | | 綜合權益變動表 | 86 | | 綜合現金流量表 | 88 | | 綜合財務報表附註 | 90 | | | | 財務摘要 160 梁志天設計集團有限公司 年度報告 2018 公司資料 | --- | --- | |---------------------------------------|--------------------- ...