SLD GROUP (HKEX: 02262) released its audited results for the year ended 31 December 2025, reporting solid top-line growth and a sharp rebound in profitability.
Revenue and Earnings • Group revenue increased 15.00% year on year to HK$422.70 million (FY24: HK$367.70 million), driven mainly by stronger trading of interior decorative products and steady design service income. • Profit attributable to owners of the Company jumped to HK$11.20 million (FY24: HK$1.80 million). • Basic and diluted EPS rose to HK0.98 cent (FY24: HK0.16 cent). • Gross profit improved 9.90% to HK$161.33 million, while gross margin edged down to 38.2% (FY24: 39.9%) amid a larger revenue share from lower-margin trading activities.
Segment Highlights • SLD (interior design and licensing): revenue HK$242.77 million, +13.10% YoY; gross profit HK$100.56 million, 41.4% margin. • SLL (interior decorating & product trading): revenue HK$141.16 million, +32.20% YoY; gross profit HK$55.43 million, 39.3% margin. • JHD (PRC hospitality & commercial design): revenue HK$38.78 million, –16.20% YoY; gross profit HK$5.33 million, 13.7% margin.
Order Book and New Wins • Remaining contract sum rose 10.40% to HK$560.00 million (31 Dec 2024: HK$507.10 million). • New contracts signed during the year totalled HK$588.90 million, up from HK$564.30 million a year earlier, with the SLL segment and overseas hospitality projects contributing most of the growth.
Balance Sheet and Cash Flow • Net cash increased to HK$153.30 million (31 Dec 2024: HK$120.90 million) after full repayment of all bank borrowings. • Net asset value per share stood at HK$0.29 (31 Dec 2024: HK$0.28). • Current ratio improved to 2.9x (31 Dec 2024: 2.6x); the Group held no interest-bearing bank debt at year-end.
Costs and Provisions • Selling expenses edged up 6.7% to HK$20.66 million, reflecting higher business-development outlays. • Administrative expenses were broadly stable at HK$106.88 million (+1.0% YoY). • Impairment losses on trade receivables and contract assets increased to HK$15.96 million (FY24: HK$6.45 million), mirroring elongated collection cycles in the PRC real-estate market.
Dividend • In light of ongoing market uncertainties and a focus on liquidity, the Board proposed no final dividend for FY25 (FY24: nil).
Management Commentary and Outlook Management highlighted resilient demand for premium residential and hospitality design in Mainland China and accelerating opportunities in the Middle East and Japan. Strategic priorities for 2026 focus on “rejuvenation, diversification and internationalisation,” with emphasis on expanding product-trading revenues and overseas project wins while maintaining prudent cost and risk controls.