DL Holdings Announces 2022 Interim Results

Financial Segment Records Significant Growth with Development in both Investment and Acquisition

Results Highlights

• The Group recorded a revenue of approximately HK$125.2 million with gross profit of approximately HK$66.1 million. The Group recorded loss for the period of approximately HK$30.2 million.
• The segment revenue for provision of financial services of licensed business was approximately HK$88.7 million and segment profit was approximately HK$22.1 million. The provision of financial services of licensed business remains the major revenue contributor during the Reporting Period.
• The Group is continuing to expand its market share in Asia-Pacific region and announced the acquisition of 45% equity interest in its related company, DL Family Office (HK) Limited, and 100% equity interest in Emerald Wealth Management Limited at the consideration of HK$63.0 million and HK$15.5 million respectively.
• Construction of "ONE Carmel", the Group's first luxury real estate project, is commenced in Q4 2022.

HONG KONG, Nov. 30, 2022 /PRNewswire/ -- DL Holdings Group Limited ("DL Holdings" or the "Company" and its subsidiaries (together, the "Group"), Stock Code: 1709.HK) is pleased to announce its unaudited consolidated interim results for the six months ended 30 September 2022 (the "1H FY2022").

Over the past year, the continued spread of COVID-19 epidemic, and a series of major events around the world have caused the fluctuation in global capital market and undermined the confidence. Hong Kong is under pressure from both sluggish economy and the loss of foreign investment. Its finance market is undergoing the biggest challenge in the past 20 years. Despite the challenges, the Group continued to expand its financial services of licensed business.

During the Reporting Period, the Group recorded a revenue of approximately HK$125.2 million and the gross profit of the Group was approximately HK$66.1 million. The Group recorded loss for the period of approximately HK$30.2 million. The loss was mainly attributable to the segment revenue for the Apparel Business decreased to approximately HK$16.2 million from approximately HK$69.1 million for the six months ended 30 September 2021, and the fair value losses on financial assets at fair value through profit or loss of approximately HK$40.6 million for the Reporting Period compared to fair value gains of approximately HK$11.0 million for the six months ended 30 September 2021. Total comprehensive expense attributable to owners of the Company was approximately HK$30.7 million for the Reporting Period. 

As the global epidemic is coming to an end, the Mainland China and Hong Kong governments are gradually relaxing their epidemic prevention measures to promote the economic recovery, and the Hong Kong capital markets are gradually recovering. The growth in financial services customers and the expanded scale of asset management will bring stronger impetus to the Group's revenue growth.

During the Reporting Period, the provision of financial services of licensed business remains the major revenue contributor to the Group. The segment revenue was approximately HK$88.7 million, representing an increase of approximately 11.7% (2021: HK$79.4 million). The segment profit was approximately HK$22.1 million (2021: 44.9 million). The increase in segment revenue was mainly attributable to the increase in revenue from financial advisory services in relation to placing of securities while the decrease in segment profit was due to increase in cost of services in relation to the licensed business of the Group, mainly the sub-placing commission in placing of securities.

During the Reporting Period, the segment revenue for provision of money lending services was approximately HK$8.3 million, which represents an increase of approximately 2.5%. The segment profit was approximately HK$5.7 million. Due to the COVID-19 outbreaks which were still rampant in Asia (particularly in China) and international trade conflicts, both the sourcing activities and business development opportunities for the garment business had been adversely affected. Therefore, the segment revenue for the Apparel Business decreased to approximately HK$16.2 million and the segment loss for the Reporting Period was approximately HK$5.2 million. The Group's enterprise solutions services business contributed segment revenue of approximately HK$12.0 million.

Continued expansion of the financial services of licensed business during adversity

Despite the ongoing impact of COVID-19, the Group continued to expand its financial services of licensed business. During the Reporting Period, the Group has provided financial advisory services to its clients from different industry sectors, including communications, industrial, consumer, technology and financial sectors, of which approximately 24.8% are companies listed on The Stock Exchange of Hong Kong Limited.

As at 30 September 2022, the Group has 355 securities brokerage clients. During the Reporting Period, the transaction amount for the securities trading and brokerage services amounted to approximately HK$2,745 million with total customer asset size for brokerage services amounted to approximately HK$1,538 million.

Seizing market opportunity and becoming one of the first listed company operating Multi Family Office business in Hong Kong

In May this year, the Group announced the acquisition of 45% equity interest in its related company, DL Family Office (HK) Limited ("DL Family Office HK"), at a consideration of HK$63.0 million, and completed the acquisition of Emerald Wealth Management Limited ("Emerald Wealth") on 18 October 2022 at a consideration of HK$15.5 million, in a total of 78.5 million. DL Family Office HK is principally engaged in provision of wealth inheritance financial services of licensed businesses including securities advisory services and asset management services with over US$2.1 billion assets under management (AUM) and asset under advisory (AUA). Emerald Wealth is a licensed insurance intermediary which provides insurance and wealth planning related services to the Group's clients.

In recent years, Hong Kong government has dedicated to support Hong Kong to become a family office hub in Asia. Established in 2012, DL Family Office, has a history of over 10 years. It is one of the first licensed Multi Family Office recognized by the government in Hong Kong. Headquartered in Hong Kong, DL Family Office has offices in mainland China, Singapore, North America, and Japan.

DL Family Office is principally engaged in provision of financial services of licensed businesses including securities advisory services and asset management services. It is a licensed corporation under the SFO and is permitted to carry on Type 4 regulated activity (advising on securities) and Type 9 regulated activity (asset management) which can provide ultra-high-net-worth clients with series of financial services such as asset management and investment, family constitution, identity planning, impacting investment, insurance services, charitable funds, education consulting, and health consulting. The core team of DL Family Office comes from internationally renowned private banks, investment banks and wealth management institutions, with more than 20 years of experience on average.

Through the acquisition of the family office business, the Group will become one of the first listed company operating multi family office business in Hong Kong. It will facilitate DL Holdings' wealth management and impact investment pipeline in Singapore and North American markets, and expand its asset management scale and business scope. It will accelerate the Group's transformation into a full-service multi family office and asset management business, and continue to expand its market share in the Asia-Pacific region and maintain its rapid growth momentum.

ONE Carmel – the Group's first luxury real estate project in North America Bay Area

On 21 August 2020, DL Investment Holdings US, LLC, a wholly owned subsidiary of the Company has agreed to subscribe for, 27.06% of the interest at Carmel Reserve LLC at the consideration of US$5,000,000 (equivalent to approximately HK$39,000,000). The Subscription represents the first luxury real estate investment in North America Bay Area of the Group, "ONE Carmel". This gated luxury community occupies 891-arce land (3.6 square kilometers) with an exclusive collection of 73 world-class estate homes. As at 30 September 2022, the fair value of the investment amounted to approximately HK$107.0 million, which represents approximately 13.4% of the total assets of the Group. It is expected that the project will make a significant contribution to the Group's revenue and form a broader and deeper base of top-tier clients for the Group.

Looking forward, Mr. Andy Chen, Chairman of the Board, Executive Director and Chief Executive Officer of DL Holdings, said, "Family office services have always been the core and foundation of the Group. We are committed to serving and helping outstanding entrepreneurs through all business cycles, from the beginning to keeping of their businesses. It is because of this trust and companionship that DL has been able to grow and thrive in this highly volatile market environment. Pioneering in the industry, DL acquired DL Family Office HK with a unique vision of being the only listed company in Hong Kong to link family offices, investment banks and alternative investments together. I am confident that the acquisition will lead to another record performance.

Meanwhile, the Group's real estate investment in the US has also achieved huge progress during the Reporting Period. Following the commencement of construction, this project will become one of the anchor investments of the Group, and will help to attract more international investors and buyers which will eventually generate higher returns to the Group and all the Shareholders. With more talents joining the Group, the Group believes that the opportunities and market shares will grow naturally and rapidly which will make the Group a leading multi-family office and investment platform in the Asia-Pacific region. We will actively overcoming the uncertainty, adapting to the economic environment and pursuing higher returns to all the Shareholders of the Group."

About DL Holdings Group Limited

DL Holdings Group Limited (1709.HK) is a listed main board company on the Hong Kong Stock Exchange, which including investment banking services, securities trading, financial advisory, multi-strategy investment fund management, investment research, and financial loans. DL Securities, a holder of Hong Kong Securities and Futures Commission licenses, can engage in Type 1 (Dealing in Securities), Type 4 (Advising on Securities) and Type 6 (Advising on Corporate Financing) regulated activities. DL Capital mainly provides asset management services and is licensed by HKSFC to engage in Type 4 (Advising on Securities) and Type 9 (Asset Management) regulated activities. ONE Advisory provides one-stop, individually customized and comprehensive global residency planning consulting services for high-net-worth individuals and families. DL Holdings (1709.HK) also holds a Singapore RFMC fund license, a Cayman Islands SIBL fund license and owns more than 18 Hong Kong limited partnership funds (LPF) for investing Private Equity. And Seazon Pacific Limited, a subsidiary of the Group, as an apparel company that provides innovative supply chain management solutions to our customers.

This press release is issued by Joint PR Consultants Limited on behalf of DL Holdings Group Limited.

SOURCE DL HOLDINGS GROUP LIMITED