Financial Performance - Total revenue for the six months ended June 30, 2019, was approximately HKD 50.6 million, a decrease of about 24.0% compared to HKD 66.5 million in the same period of 2018[11] - Gross profit for the same period was approximately HKD 7.8 million, down about 51.8% from HKD 16.1 million in 2018, resulting in a gross margin of 15.4%, down from 24.2%[11] - The company reported a loss attributable to owners of approximately HKD 7.3 million for the six months ended June 30, 2019, compared to a profit of HKD 0.3 million in 2018[11] - The adjusted EBITDA for the period was approximately (HKD 5.2 million), compared to HKD 1.8 million in 2018[12] - For the three months ended June 30, 2019, the total comprehensive loss was HKD 5,947,000, compared to a loss of HKD 4,061,000 for the same period in 2018, representing an increase of 46.4%[31] - The basic loss per share for the six months ended June 30, 2019, was HKD 1.22, a decrease from HKD 0.80 in the same period of 2018[31] - For the six months ended June 30, 2019, the company recorded a total loss attributable to owners of HKD (7,268,000), significantly higher than a profit of HKD 285,000 in the same period of 2018[78] Project and Revenue Details - The number of projects completed and in progress decreased by 14.3% to 42 projects in 2019 from 49 projects in 2018[6] - The average revenue per project decreased by 7.7% to approximately HKD 1.2 million in 2019 from HKD 1.3 million in 2018[8] - The company secured contracts totaling over HKD 92.2 million, with some projects expected to commence in the third quarter of 2019[8] - The number of office projects decreased by 25.7% to 26 in 2019, while commercial projects increased by 71.4% to 12[6] - The company's revenue from design and decoration services for the six months ended June 30, 2019, was HKD 50,564,000, a decrease of 24% compared to HKD 66,499,000 for the same period in 2018[66] - The revenue from external customers in Hong Kong for the six months ended June 30, 2019, was HKD 50,564,000, down from HKD 66,499,000 in the same period of 2018, representing a 24% decline[67] - The top five customers accounted for approximately 68% of the total revenue for the six months ended June 30, 2019, compared to 56% in 2018[67] Expenses and Liabilities - For the six months ended June 30, 2019, the group's total operating expenses were approximately HKD 14.8 million, a decrease from HKD 15.3 million in the same period of 2018, primarily due to reduced advertising and marketing expenses[14] - The adjusted EBITDA for the six months ended June 30, 2019, was a loss of approximately HKD 5.2 million, compared to a profit of approximately HKD 1.8 million in the same period of 2018, mainly due to decreased revenue and overall gross margin decline[14] - Total liabilities as of June 30, 2019, were approximately HKD 85.5 million, down from approximately HKD 105.3 million as of December 31, 2018[15] - Current liabilities decreased significantly to HKD 46,546,000 from HKD 83,843,000 in the previous period, indicating a reduction of 44.5%[35] - The company’s current liabilities exceeded current assets, with current liabilities at HKD 46,546,000 and current assets at HKD 7,772,000[44] Cash Flow and Assets - As of June 30, 2019, the group had cash and cash equivalents of approximately HKD 18.0 million, down from approximately HKD 20.7 million as of December 31, 2018[15] - Cash and bank balances at the end of June 30, 2019, were HKD 18,006,000, down from HKD 20,681,000 at the end of 2018, a decrease of 12.9%[33] - The net cash used in operating activities for the six months ended June 30, 2019, was HKD 16,088,000, slightly improved from HKD 17,941,000 in the same period of 2018[40] - The company reported a net cash inflow from investing activities of HKD 4,913,000 for the six months ended June 30, 2019, compared to HKD 27,800,000 in the previous year, indicating a significant decrease of 82.3%[40] - The total equity attributable to owners of the company decreased to HKD 63,676,000 as of June 30, 2019, from HKD 70,944,000 at the end of 2018, a decline of 10.3%[35] - The company’s total assets less current liabilities were HKD 60,711,000 as of June 30, 2019, down from HKD 113,254,000 in the previous period, a decrease of 46.3%[35] Employee and Operational Details - The group had 40 employees as of June 30, 2019, compared to 43 employees as of December 31, 2018[26] - Total employee costs for the six months ended June 30, 2019, were approximately HKD 9.8 million, compared to approximately HKD 9.6 million for the same period in 2018[26] - The company has been actively recruiting high-quality talent to strengthen its capabilities and has updated its IT infrastructure to support business growth[103] - The company has a stock option plan effective for 10 years, aimed at attracting and retaining competent personnel[125] Corporate Governance and Compliance - The company has adhered to all corporate governance codes as per GEM Listing Rules Appendix 15 for the six months ended June 30, 2019[140] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial information and interim report for the six months ended June 30, 2019[143] - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the six months ended June 30, 2019[142] Market and Strategic Initiatives - The company anticipates that the market conditions and economic environment for the remainder of 2019 remain uncertain, with a focus on enhancing customer value and optimizing productivity[9] - The company continues to invest in marketing efforts, including advertising in MTR stations and donations to charities to enhance its corporate image[105] - The company allocated a total of HKD 57,000,000 for various strategic initiatives, with 27% (HKD 15,225,000) dedicated to recruiting high-quality talent[121] - 24% (HKD 13,587,000) of the total budget is earmarked for developing new business categories and potential business collaborations or acquisitions[121] - Market expansion efforts received 19% (HKD 10,788,000) of the total allocation[121] - The company aims to enhance marketing effectiveness and brand awareness, with an investment of HKD 4,860,000, which is 8% of the total[121] - General working capital is set at HKD 5,700,000, accounting for 10% of the total budget[121] Risks and Challenges - The company faces significant risks, including the inability to secure new contracts, which could materially impact financial performance[123] - The reliance on management team performance and project management personnel is critical for operational success[123]

Financial Performance - Total revenue for the three months ended March 31, 2019, increased by approximately 4.5% to about HKD 34.5 million compared to HKD 33.0 million in the same period of 2018[10] - Revenue for the three months ended March 31, 2019, was HKD 34.671 million, an increase from HKD 33.579 million for the same period in 2018[22] - The average revenue per project decreased from approximately HKD 1.27 million in 2018 to about HKD 1.15 million in 2019[8] - Gross profit for the three months ended March 31, 2019, was approximately HKD 5.3 million, a decline of about 36.9% from HKD 8.4 million in 2018[13] - The gross profit margin dropped from approximately 25.2% in 2018 to about 15.3% in 2019 due to increased subcontracting costs from larger commercial projects[13] - Adjusted EBITDA for the three months ended March 31, 2019, was approximately -HKD 1.7 million, compared to HKD 1.1 million in the same period of 2018[14] - The company recorded a loss attributable to owners of approximately HKD 2.9 million for the three months ended March 31, 2019, compared to a profit of about HKD 4.3 million in 2018[14] - The group reported a loss of HKD 2.898 million for the three months ended March 31, 2019, compared to a profit of HKD 4.345 million for the same period in 2018[22] - Basic loss per share for the period was HKD (0.49), compared to earnings of HKD 0.89 for the same period in 2018[22] - For the three months ended March 31, 2019, the company reported a loss attributable to shareholders of HKD (2,905,000), compared to a profit of HKD 4,254,000 for the same period in 2018, representing a year-over-year decline of 168.3%[34] - Basic loss per share for the first quarter of 2019 was HKD (0.49), down from HKD 0.89 in the same quarter of 2018, indicating a decrease of 154.9%[34] Project and Client Activity - The number of projects increased by approximately 15.4% from 26 to 30 projects year-over-year[6] - The company has secured multiple projects totaling approximately HKD 85.9 million, which are expected to contribute to total revenue later in 2019[8] - The company continues to gain projects from existing and new clients, enhancing its reputation and competitive advantage in the market[13] - The group’s primary service revenue included design and renovation services totaling HKD 34.304 million for the three months ended March 31, 2019, compared to HKD 32.992 million in 2018[28] Operating Expenses and Financial Position - Operating expenses for the three months ended March 31, 2019, were approximately HKD 7.5 million, a decrease from HKD 7.8 million in the same period of 2018[13] - As of March 31, 2019, the group had cash and cash equivalents of approximately HKD 15.0 million, down from HKD 20.7 million as of December 31, 2018[16] - The current ratio as of March 31, 2019, was approximately 1.8 times, unchanged from December 31, 2018[16] - Total liabilities as of March 31, 2019, were approximately HKD 104.6 million, a slight decrease from HKD 105.3 million as of December 31, 2018[16] - The capital-to-debt ratio was approximately 70.8% as of March 31, 2019, compared to 66.9% as of December 31, 2018[16] Shareholder Information - Major shareholder Legend Investments International Limited holds 144,004,000 shares, representing 24.2% of the issued voting shares[59] - Climb Up Limited, another major shareholder, holds 115,000,000 shares, also representing 19.3% of the issued voting shares[59] - The weighted average number of ordinary shares increased from 480,000,000 in 2018 to 595,000,000 in 2019, reflecting a growth of 24%[34] Corporate Governance - The company has confirmed compliance with all corporate governance codes as per GEM Listing Rules Appendix 15 during the reporting period[63] - There were no arrangements made that would allow directors or major shareholders to acquire any securities of the company or its affiliates during the reporting period[60] - The company’s operations remain independent from Ace Architectural and Interior Design Limited, a non-wholly owned subsidiary, ensuring no direct competition[62] - The audit committee was established on June 15, 2016, and consists of three independent non-executive directors[67] - The audit committee reviewed the unaudited financial information and the first quarter report for the period ended March 31, 2019[67] Dividends and Acquisitions - The group did not declare any interim dividends for the three months ended March 31, 2019, consistent with the previous year[19] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the three months ended March 31, 2019[20] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ended March 31, 2019[65] Stock Options - The company has a stock option plan effective from July 12, 2016, for a duration of 10 years, aimed at attracting and retaining competent personnel[36] - As of March 31, 2019, there were no unexercised, granted, cancelled, exercised, or lapsed stock options[36]

Financial Performance - The total revenue for the year was approximately HKD 162.4 million, representing an increase of about 36.9% compared to 2017[13]. - The gross profit for the year was approximately HKD 19.6 million, a decrease of about 37.0% compared to 2017, with a gross profit margin dropping from approximately 26.2% to about 12.1%[13]. - The company recorded a loss attributable to owners of approximately HKD 35.2 million, compared to a profit of about HKD 2.5 million in 2017[13]. - Revenue for the year ended December 31, 2018, was approximately HKD 162.4 million, representing a 36.9% increase compared to HKD 118.7 million in 2017[30]. - Gross profit for the same period was approximately HKD 19.6 million, a decrease of about 37.0% from HKD 31.2 million in 2017, resulting in a gross margin decline from 26.2% to 12.1%[30]. - Adjusted EBITDA for the year was approximately (HKD 13.6 million), compared to HKD 4.6 million in 2017, indicating operational challenges[30]. - The adjusted EBITDA for the year was approximately HKD -13.6 million, down from HKD 4.6 million in 2017, attributed to increased operating expenses and a decline in overall gross margin[36]. Project and Market Development - The number of projects increased by 27.1% compared to 2017, excluding maintenance and after-sales service projects[13]. - The average revenue per project (excluding maintenance and after-sales service) increased by approximately 8.6% to about HKD 2.65 million[13]. - The company has secured projects valued at approximately HKD 90.5 million, which are expected to contribute to total revenue in 2019 and beyond[14]. - The commercial project segment saw a significant revenue increase of 920.0%, from HKD 5.0 million in 2017 to HKD 51.0 million in 2018[27]. - The company aims to explore new business lines and expand its core business into different markets to strengthen its market position[10]. - The management remains optimistic about the future development of the interior design and renovation industry in Hong Kong due to the revitalization of industrial buildings[22]. Acquisitions and Investments - In June 2018, the company completed the acquisition of a 49% stake in Primo Group (BVI) Limited, which provides interior design and renovation solutions for luxury residences and offices in Hong Kong[14]. - The company acquired a 60% stake in Ace Architectural and Interior Design Limited and a 49% stake in Primo, enhancing its service offerings in interior design and renovation solutions[23]. - The group reported a significant acquisition of 49% of Primo's shares for HKD 75 million, completed on June 20, 2018[111]. Financial Position and Liabilities - As of December 31, 2018, the company had cash and cash equivalents of approximately HKD 20.7 million, down from HKD 57.9 million at the end of 2017[50]. - The current ratio as of December 31, 2018, was approximately 1.8 times, compared to 2.9 times at the end of 2017[50]. - Total liabilities as of December 31, 2018, were approximately HKD 105.3 million, up from HKD 40.6 million in 2017, primarily due to trade and other payables and borrowings[50]. - The capital-to-debt ratio was approximately 66.9% as of December 31, 2018, reflecting the issuance of promissory notes related to the acquisition of Primo[50]. Corporate Governance and Management - The company has maintained a strong commitment to corporate governance principles and practices[155]. - The board consists of six directors, including three executive directors and three independent non-executive directors[157]. - The company has established an Audit Committee to oversee financial reporting, risk management, and internal control procedures, with four meetings held during the year[180]. - The Remuneration Committee reviewed the remuneration of executive directors and senior management, providing recommendations to the board[186]. - All independent non-executive directors confirmed their independence according to GEM Listing Rules, ensuring compliance with governance standards[174]. Employee and Operational Insights - The total number of employees decreased to 43 as of December 31, 2018, from 49 the previous year[67]. - The company reported a total employee cost of approximately HKD 20.3 million for the year, up from HKD 17.6 million in the previous year, primarily due to enhanced compensation packages[67]. - The company has a diverse board of directors with expertise in finance, engineering, and design, contributing to strategic decision-making[80]. Social Responsibility and Community Engagement - The company continues to receive recognition for its corporate social responsibility efforts, including awards for being a caring company and a happy enterprise[17]. - The company has a strong commitment to community service and environmental sustainability, utilizing eco-friendly materials and practices[73]. - Charitable donations made by the group during the year totaled HKD 40,000, down from HKD 125,700 in 2017[115].