DL Holdings Group (1709) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 decreased by 18.1% year-over-year to HK$83.0 million, mainly due to lower financial services income.

• Gross profit rose 22.4% to HK$62.3 million, with gross margin improving to 75.0% from 50.2% due to higher-margin family office services.

• Net profit increased by 10.0% to HK$7.7 million, with EPS at HK0.52 cents (up from HK0.49 cents year-over-year).

• The group continued to expand its financial services, family office, and money lending businesses, while apparel and enterprise solutions segments faced ongoing challenges.

• No interim dividend was declared for the period.

Financial highlights

• Financial services revenue dropped 38.1% to HK$48.5 million, while family office services contributed HK$20.5 million.

• Money lending revenue was HK$6.0 million, down from HK$8.3 million, but segment profit increased to HK$3.5 million due to reversal of expected credit loss.

• Apparel business revenue fell to HK$1.8 million, with a segment loss of HK$1.7 million.

• Enterprise solutions revenue was HK$6.2 million, with a segment loss of HK$4.9 million.

• Other gains, mainly from fair value gains on financial assets, increased to HK$30.9 million.

Outlook and guidance

• The group aims to strengthen its position as a leading asset management and financial services platform in Asia-Pacific, focusing on family office and digital transformation.

• Plans include expanding AI-driven digital family office services and leveraging technology to enhance client experience and operational efficiency.

• The apparel business will continue a conservative strategy amid global uncertainties.

• Ongoing investment in research, technology, and new markets such as Japan and US real estate.