SLD GROUP (Steve Leung Design Group Limited) reported interim results for the six months ended 30 June 2026 showing tighter cost management offsetting weaker top-line growth.
Key financials • Revenue decreased 4.1 % year-on-year to HK$186.69 million, primarily due to a slowdown in the “JHD” hospitality and commercial operation in mainland China. • Gross profit rose 3.1 % to HK$75.29 million; gross margin improved to 40.3 % (H1 2025: 37.5 %) as employee optimisation and lower selling expenses cut costs. • Profit attributable to equity owners increased 46.3 % to HK$2.32 million; basic EPS climbed to HK0.20 cent from HK0.14 cent. • Net cash stood at HK$147.03 million (31 December 2025: HK$153.34 million); current ratio strengthened to 3.1. • The board declared no interim dividend.
Segment performance • “SLD” design services—focused mainly on residential projects—generated HK$119.29 million, up 2.0 % and accounting for 63.9 % of group revenue. • “SLL” lifestyle and product-trading activities contributed HK$57.99 million, up 4.5 %, representing 31.1 % of revenue. • “JHD” hospitality and commercial design revenue fell 57.5 % to HK$9.41 million, weighing down mainland performance.
Order book The remaining contract sum totalled HK$544.90 million at period-end (31 December 2025: HK$560.00 million), of which 84.9 % originates from mainland China. New awards in the half-year declined 35.1 % to HK$186.40 million as the group focused on “high-quality clients and projects”.
Operating metrics • Selling expenses almost halved to HK$5.27 million; administrative expenses edged up 4.9 % to HK$53.68 million due to one-off severance payments. • Impairment losses on receivables and contract assets were HK$10.22 million, reflecting longer collection cycles amid property-market weakness. • Finance costs dropped 54.7 % to HK$0.56 million after bank borrowings were fully repaid.
Management commentary The group noted continued restructuring in China’s real-estate sector, with business momentum shifting from new developments to renovation and urban-renewal projects. Strategic priorities remain “rejuvenation, diversification and internationalisation”, including expansion in the Middle East and Central Asia, disciplined client selection, and further cost optimisation.
No significant events after the reporting date were disclosed, other than ongoing minor legal contingencies and a HK$6.30 million capital commitment for fixed-asset purchases.