DL Holdings Group (1709) H2 2023 earnings summary

Executive summary

• Revenue rose 5.9% year-over-year to HK$202.4 million, with gross profit up 27.1% to HK$130.5 million and gross margin improving to 64.5% from 53.7%.

• Net profit reached HK$99.9 million, reversing a prior year loss of HK$49.2 million; EPS was 7.17 HK cents (basic).

• Acquisition of the remaining 55% of DL Family Office HK expanded the Group's financial services platform and contributed to revenue growth.

• Final dividend proposed at HK1.98 cents per share, up from HK1.03 cents, totaling HK$30.1 million.

Financial highlights

• Financial services segment revenue increased to HK$151.0 million (from HK$136.9 million), driven by higher management and performance fees.

• Money lending revenue declined 15.6% to HK$14.1 million, with segment loss due to higher ECL provisions.

• Apparel business revenue dropped 78.5% to HK$4.8 million, with segment loss narrowing to HK$5.4 million.

• Enterprise solutions revenue rose to HK$16.3 million, with segment profit up to HK$33.9 million, aided by fair value gains.

• Net other gains of HK$99.3 million, mainly from a HK$68.0 million remeasurement gain on step acquisition and HK$23.0 million fair value gains.

Outlook and guidance

• Group expects a challenging environment due to global economic uncertainty and high interest rates, especially for the apparel segment.

• Focus remains on expanding financial services, particularly family office and asset management in Asia-Pacific.

• Plans to develop digital family office services and broaden investor base through standardized investment schemes.