Financial Performance - The total revenue for the year was approximately HKD 67.1 million, a decrease of about 53.0% compared to 2019[11]. - The average revenue per project (excluding maintenance and after-sales services) decreased by approximately 54.1% to about HKD 1.02 million[11]. - The gross profit for the year was approximately HKD 15.1 million, down about 16.8% from 2019, with a gross margin increase from approximately 12.7% in 2019 to about 22.6% in 2020[11]. - The loss attributable to the owners of the company was approximately HKD 38.0 million, a decrease of about 32.6% compared to 2019[12]. - The company's revenue for the year ended December 31, 2020, was approximately HKD 67.1 million, a decrease of about 53.0% compared to HKD 142.7 million in 2019[31]. - The gross profit for the year was approximately HKD 15.1 million, down about 16.8% from HKD 18.2 million in 2019, with a gross margin increase from 12.7% to 22.6%[33]. - The average revenue per project decreased by approximately 54.1% to about HKD 1.02 million, compared to HKD 2.22 million in 2019[26]. - The company reported a loss attributable to shareholders of HKD 38.0 million for the year, an improvement from a loss of HKD 56.4 million in 2019[31]. - Adjusted EBITDA for the year was approximately -HKD 15.6 million, compared to -HKD 14.8 million in 2019, primarily due to a decline in total revenue[35]. - The loss attributable to the company's owners was approximately HKD 38.0 million, a reduction of about 32.6% from HKD 56.4 million in 2019[35]. Project and Market Development - The company has secured several projects valued at approximately HKD 77.6 million, which are yet to commence as of the report date[12]. - The number of completed and ongoing projects increased by 1.6% to 65 projects in 2020, compared to 64 projects in 2019[24]. - The company secured projects valued at approximately HKD 77.6 million that are expected to contribute to total revenue in 2021 and beyond[27]. - The number of residential projects increased significantly by 300% to 16 in 2020, compared to 4 in 2019[24]. - The company remains optimistic about the future development of the interior design and renovation industry in Hong Kong, anticipating growth as the political environment stabilizes and the economy recovers[21]. - The company plans to explore new business lines and expand its core business into different markets to maintain growth and enhance its reputation[30]. - The company has expanded its market coverage by relocating its office to Kwun Tong and enhancing its image through innovative design[47]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[96]. Cost Management and Operational Efficiency - The management has implemented extensive cost control measures to mitigate the impact of the pandemic on operations[10]. - The company will continue to implement cost control measures and negotiate with contractors to improve profitability amid challenging economic conditions[33]. - The group's total operating expenses for the year were approximately HKD 36.8 million, a decrease of about 0.5% from HKD 37.0 million in 2019[35]. - The total employee cost for the year was approximately HKD 18.5 million, a decrease from HKD 20.9 million in the previous year due to salary adjustments related to reduced revenue[76]. Corporate Governance and Management - The company has a strong commitment to environmental compliance, monitoring subcontractors to adhere to relevant laws and regulations[105]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules[177]. - The company is committed to maintaining good corporate governance practices, which are considered essential for managing business risks and achieving success[175]. - The board has a clear division of responsibilities, with the chairman focusing on effective leadership and the CEO responsible for formulating corporate strategies[182]. - The company has established a robust internal control system to review corporate governance practices and significant investments[182]. - All independent non-executive directors have issued annual confirmations of their independence according to GEM Listing Rule 5.09, and the company believes they all meet the independence guidelines[196]. Future Outlook and Strategic Initiatives - The demand for interior design services is expected to increase due to the COVID-19 pandemic, with a focus on adapting work environments to new safety protocols[16]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[92]. - New product development initiatives are underway, with an investment of HKD 50 million allocated for R&D in innovative design solutions[95]. - A strategic acquisition of a local design firm is expected to enhance service offerings and increase operational capacity by 30%[95]. - The company has implemented new sustainability strategies, aiming for a 40% reduction in carbon footprint by 2025[96]. Shareholder and Financial Management - The company focuses on maximizing shareholder returns while ensuring sustainable profit growth and considering business development needs[114]. - The company did not recommend a final dividend for the year, consistent with the previous year[119]. - The company has allocated sufficient resources and training to ensure compliance with applicable laws and regulations, with no significant violations reported during the year[109]. - The company has not entered into any equity-linked agreements during the year that would lead to the issuance of new shares[124]. - The company had cash and cash equivalents of approximately HKD 24.6 million as of December 31, 2020, compared to HKD 22.1 million as of December 31, 2019[58]. - The current ratio as of December 31, 2020, was approximately 1.3 times, down from 1.4 times in the previous year[58]. - The total liabilities amounted to approximately HKD 111.6 million as of December 31, 2020, compared to HKD 116.5 million in the previous year[58]. - The capital debt ratio increased to approximately 75.0% as of December 31, 2020, from 51.2% the previous year, primarily due to losses incurred during the year[59]. Employee and Talent Management - The company aims to attract top talent and continue to implement COVID-safe measures and technologies in the coming year[16]. - The group had 40 employees as of December 31, 2020, compared to 39 employees a year earlier[76]. - The company has a stock option plan effective from July 12, 2016, for a duration of 10 years, aimed at attracting and retaining qualified personnel[149][150]. - A total of 48,000,000 stock options were granted on October 9, 2020, with an exercise price of HKD 0.043 per share[151].

Financial Performance - Total revenue for the nine months ended September 30, 2020, was approximately HKD 44.8 million, a decrease of about 50.5% compared to HKD 90.4 million in the same period of 2019[12]. - Average revenue per project fell by 43.8% to approximately HKD 0.9 million from HKD 1.6 million in 2019[8]. - Gross profit for the nine months was approximately HKD 8.8 million, down about 42.0% from HKD 15.2 million in 2019, while the gross profit margin increased from 16.8% to 19.7%[14]. - The company reported an adjusted EBITDA of (HKD 7.2 million) for the nine months, compared to (HKD 4.0 million) in the previous year[12]. - Revenue for the three months ended September 30, 2020, was HKD 2,855,000, a decrease of 92.8% compared to HKD 39,885,000 for the same period in 2019[27]. - Revenue for the nine months ended September 30, 2020, was HKD 44,780,000, down 50.5% from HKD 90,449,000 in the same period of 2019[27]. - The operating loss for the three months ended September 30, 2020, was HKD 6,227,000, compared to an operating profit of HKD 531,000 in the same period of 2019[27]. - The net loss for the nine months ended September 30, 2020, was HKD 33,753,000, significantly higher than the loss of HKD 9,922,000 for the same period in 2019[27]. - Total comprehensive expenses for the nine months ended September 30, 2020, amounted to HKD 34,572,000, compared to HKD 10,033,000 in the same period of 2019[29]. - Basic loss per share for the nine months ended September 30, 2020, was HKD (4.74), compared to HKD (1.34) for the same period in 2019[29]. Project and Market Activity - The number of projects completed and in progress decreased by 15.8% from 57 to 48 projects year-over-year[5]. - The number of office projects increased by 9.1% from 33 to 36, while commercial projects saw a significant decline of 73.7% from 19 to 5[5]. - The company experienced a significant decline in commercial project revenue, which dropped by 95.7% from HKD 44.2 million to HKD 1.9 million[7]. - The company continues to receive projects from both existing and new clients, leveraging its strong reputation and industry experience[8]. - The company has secured contracts totaling over HKD 105.8 million, with some projects expected to commence in Q4 2020 and 2021[8]. Expenses and Losses - Total operating expenses for the nine months ended September 30, 2020, were approximately HKD 19.4 million, down from HKD 22.1 million in the same period of 2019[16]. - Adjusted EBITDA for the nine months ended September 30, 2020, was approximately HKD -7.2 million, compared to HKD -4.0 million in the same period of 2019, primarily due to a decrease in overall gross profit[16]. - The loss attributable to owners of the company for the nine months ended September 30, 2020, was approximately HKD 31.7 million, compared to HKD 8.0 million in the same period of 2019[16]. - The company reported a significant increase in other expenses, totaling HKD 7,228,000 for the nine months ended September 30, 2020, compared to HKD 6,825,000 in 2019[27]. - Financial costs for the nine months ended September 30, 2020, were HKD 3,756,000, slightly up from HKD 3,578,000 in the same period of 2019[27]. - The company recognized a loss from other (loss)/income of HKD (19,961,000) for the nine months ended September 30, 2020, compared to HKD 388,000 in 2019[27]. Assets and Liabilities - As of September 30, 2020, the group had cash and cash equivalents of approximately HKD 27.7 million, an increase from HKD 22.1 million as of December 31, 2019[17]. - The current ratio as of September 30, 2020, was approximately 1.3, down from 1.4 as of December 31, 2019[17]. - Total liabilities as of September 30, 2020, were approximately HKD 117.3 million, compared to HKD 116.5 million as of December 31, 2019[17]. - The debt-to-asset ratio as of September 30, 2020, was 67.5%, up from 51.2% as of December 31, 2019[17]. Shareholder and Corporate Governance - The company completed a placement of 141,400,000 shares at a price of HKD 0.037 per share, raising approximately HKD 5.2 million net of expenses[18][20]. - The total number of issued shares as of September 30, 2020, was 848,400,000, compared to 595,000,000 shares as of December 31, 2019[20]. - The company did not declare any interim dividend for the nine months ended September 30, 2020[22]. - Major shareholders include Baoting Management with 124,232,000 shares, representing 14.64% of total shares[58]. - Climb Up Limited holds 115,000,000 shares, accounting for 13.55% of total shares, with ownership split equally between Mr. Huang and Mr. Lin[59]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial information for the nine months ending September 30, 2020[67]. - The company confirmed compliance with all corporate governance codes as per GEM listing rules during the nine months ending September 30, 2020[63]. - The company has adopted a code of conduct for directors' securities trading, confirming compliance during the nine months ending September 30, 2020[64]. Future Outlook - The company aims to strengthen its market position and enhance productivity and efficiency amid ongoing economic uncertainty[9]. - The company has not provided specific guidance for future performance or new product developments in the current report[27].

Financial Performance - Total revenue for the six months ended June 30, 2020, was approximately HKD 41.9 million, a decrease of about 17.1% compared to HKD 50.6 million in the same period of 2019[12] - Gross profit for the same period was HKD 8.4 million, an increase from HKD 7.8 million in 2019, resulting in a gross margin of approximately 20.0%, up from 15.4%[12] - The company experienced a net loss attributable to owners of HKD 25.0 million for the period, compared to a loss of HKD 7.3 million in 2019[12] - Adjusted EBITDA for the six months ended June 30, 2020, was approximately HKD -2.3 million, an improvement from HKD -5.2 million in the same period of 2019, driven by an increase in overall gross profit and a decrease in total operating expenses[14] - The total comprehensive loss for the six months ended June 30, 2020, was HKD 27,088,000, compared to HKD 8,868,000 in 2019, reflecting a significant increase in losses[35] - The group reported a loss attributable to owners of the company of HKD 21,172,000 for the six months ended June 30, 2020, compared to a loss of HKD 4,363,000 in the same period of 2019[34] - The company reported a net loss of approximately HKD 26,438,000 for the six months ended June 30, 2020[49] - The group reported a net loss of HKD 18,652,000 for the six months ended June 30, 2020, compared to a loss of HKD 19,341,000 in the same period of 2019[58] Revenue and Projects - The number of projects completed decreased by 9.5% to 38 projects, down from 42 projects in the previous year[8] - Average revenue per project decreased by 8.3% to approximately HKD 1.1 million, compared to HKD 1.2 million in 2019[8] - The company secured contracts totaling over HKD 82.6 million, with some projects expected to commence in the third quarter of 2020[8] - The group reported a revenue of HKD 15,176,000 for the three months ended June 30, 2020, compared to HKD 15,893,000 for the same period in 2019, representing a decrease of approximately 4.5%[34] - For the six months ended June 30, 2020, the revenue was HKD 41,925,000, down from HKD 50,564,000 in 2019, indicating a decline of about 17.0%[34] - The group's revenue from design and renovation management services for the six months ended June 30, 2020, was HKD 41,925,000, a decrease of 17% compared to HKD 50,564,000 for the same period in 2019[55] Expenses and Costs - Total operating expenses for the six months ended June 30, 2020, were approximately HKD 12.9 million, a decrease from HKD 14.8 million in the same period of 2019, primarily due to reduced employee benefits and legal/professional fees[14] - Employee benefits expenses for the six months ended June 30, 2020, were approximately HKD 8,847,000, down from HKD 9,769,000 in the same period of 2019, showing a reduction of about 9.4%[34] - The total other operating expenses for the six months ended June 30, 2020, amounted to HKD 4,052,000, a decrease from HKD 4,764,000 in the same period of 2019[60] - The financial cost for the six months ended June 30, 2020, was HKD 2,593,000, compared to HKD 2,166,000 in 2019, indicating an increase of approximately 19.0%[34] Assets and Liabilities - The group had cash and cash equivalents of approximately HKD 25.1 million as of June 30, 2020, compared to HKD 22.1 million as of December 31, 2019[18] - The current ratio as of June 30, 2020, was approximately 1.3 times, down from 1.4 times as of December 31, 2019[18] - Total liabilities as of June 30, 2020, were approximately HKD 117.0 million, an increase from HKD 116.5 million as of December 31, 2019[18] - The debt-to-asset ratio as of June 30, 2020, was 62.9%, up from 51.2% as of December 31, 2019, primarily due to a decrease in total assets[18] - As of June 30, 2020, the total assets amounted to HKD 90,637,000, a decrease from HKD 95,344,000 as of December 31, 2019[37] - The company's equity attributable to owners was negative HKD 8,814,000 as of June 30, 2020, compared to positive HKD 14,411,000 at the end of 2019[38] - The total liabilities exceeded total assets by HKD 17,636,000 as of June 30, 2020[49] Impairment and Investments - The company confirmed an impairment of approximately HKD 17.3 million related to its investment in the Primo Group for the six months ended June 30, 2020, compared to no impairment in the same period of 2019[15] - The group incurred a loss of HKD 17,325,000 related to impairment losses on joint ventures for the six months ended June 30, 2020[58] - The company held significant investments amounting to approximately HKD 1.3 million in equity investments as of June 30, 2020[26] Corporate Governance and Management - The board did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[23] - The company is implementing strict measures to manage costs and expenses amid financial challenges[49] - The company is considering alternative financing and bank loans to meet its financial obligations and future capital expenditures[49] - The company has a stock option plan that was approved on June 15, 2016, and is effective for 10 years, aiming to attract and retain competent personnel[117] - The audit committee was established on June 15, 2016, and consists of three independent non-executive directors[129] - The audit committee's main responsibilities include recommending the appointment and dismissal of external auditors and reviewing financial statements[129] Shareholder Information - Major shareholders as of June 30, 2020, include Mr. Sun Fulin with 144,000,000 shares (20.37%), Climb Up Limited with 115,000,000 shares (16.27%), and Mr. Huang Yuqi with 115,000,000 shares (16.27%)[124] - The company has not entered into any arrangements that would allow directors or their associates to benefit from acquiring securities of the company or its affiliates during the six months ending June 30, 2020[125]

Financial Performance - Total revenue for the three months ended March 31, 2020, decreased by approximately 22.9% to about HKD 26.6 million compared to HKD 34.5 million in the same period of 2019[6] - The number of projects decreased by approximately 13.3%, from 30 projects in 2019 to 26 projects in 2020[6] - Average revenue per project decreased by approximately 11.3%, from HKD 1.15 million in 2019 to HKD 1.02 million in 2020[9] - Gross profit for the three months ended March 31, 2020, was approximately HKD 4.3 million, a decrease of about 19.2% from HKD 5.3 million in 2019[14] - The adjusted EBITDA for the three months ended March 31, 2020, was a loss of HKD 1.8 million compared to a loss of HKD 1.7 million in 2019[11] - The company incurred a loss attributable to owners of the company of HKD 3.9 million for the three months ended March 31, 2020, compared to a loss of HKD 2.9 million in 2019[11] - Adjusted EBITDA for the three months ended March 31, 2020, was approximately -1.8 million HKD, compared to -1.7 million HKD for the same period in 2019, primarily due to a decline in overall gross profit[15] - The company recorded a loss attributable to owners of approximately 3.9 million HKD for the three months ended March 31, 2020, compared to a loss of approximately 2.9 million HKD for the same period in 2019[15] - Basic loss per share for the three months ended March 31, 2020, was (0.65) HKD, compared to (0.49) HKD for the same period in 2019[25] - The net loss attributable to the company's owners for the three months ended March 31, 2020, was HKD 3,856,000, compared to a loss of HKD 2,905,000 in 2019, representing an increase in loss of 32.7%[38] - Basic loss per share for the three months ended March 31, 2020, was HKD (0.65), compared to HKD (0.49) for the same period in 2019, indicating a deterioration in performance[38] Revenue and Income - The group's main service revenue for the three months ended March 31, 2020, was HKD 26,632,000, a decrease of 22.5% compared to HKD 34,304,000 for the same period in 2019[31] - Other income for the same period in 2020 was HKD 91,000, down from HKD 176,000 in 2019, reflecting a decline of 48.7%[32] Expenses and Liabilities - Operating expenses for the three months ended March 31, 2020, were approximately HKD 7.1 million, down from HKD 7.5 million in 2019[14] - Total liabilities as of March 31, 2020, were approximately 118.3 million HKD, compared to 116.5 million HKD as of December 31, 2019[17] - The current ratio as of March 31, 2020, was approximately 1.3 times, down from 1.4 times as of December 31, 2019[17] - The capital-to-debt ratio increased to approximately 2,492.5% as of March 31, 2020, from 688.3% as of December 31, 2019, primarily due to losses reducing the net asset value[17] Project and Client Activity - The company has secured several projects since 2018, with a total project value of approximately HKD 80.9 million, which are expected to contribute to total revenue later in 2020[9] - The company continues to receive projects from existing and new clients, maintaining its competitive advantage in the market[9] Corporate Governance and Structure - The company has a significant shareholder structure, with Mr. Sun Fulin holding 144 million shares, representing 24.2% of the voting rights[46] - Climb Up Limited, controlled by Mr. Huang Yuqi and Mr. Lin Shengwei, holds 115 million shares, accounting for 19.3% of the voting rights[46] - The board believes the company has complied with all corporate governance codes as per GEM listing rules during the three months ending March 31, 2020[51] - The company has adopted a code of conduct for securities trading by directors, which is stricter than the GEM listing rules[52] Acquisitions and Dividends - The company completed the acquisition of YTO Limited for a total consideration of 4,480,000 HKD, paid through the issuance of 112,000,000 shares, representing approximately 15.84% of the enlarged issued share capital[23] - The company did not declare any interim dividend for the three months ended March 31, 2020, consistent with the previous year[22] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the three months ended March 31, 2020[23] Stock Options and Trading - The company has a stock option plan effective for 10 years from July 12, 2016, aimed at attracting and retaining competent personnel[40] - As of March 31, 2020, there were no unexercised, granted, canceled, exercised, or expired stock options[41] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending March 31, 2020[54] Audit and Financial Review - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial information for the three months ending March 31, 2020[55] - The group did not recognize any current tax expense for the three months ended March 31, 2020, compared to HKD 3,000 in 2019[36] - The group reported a fair value loss of HKD (664,000) on financial assets for the three months ended March 31, 2020, compared to a gain of HKD 609,000 in 2019[33] Company Operations - The company’s registered office is located in the Cayman Islands, and it operates in Hong Kong, focusing on interior design and renovation solutions[1] - The group is primarily engaged in providing project management services alongside its design and renovation offerings[1] - The company has not engaged in any competitive business activities that could conflict with its operations during the same period[50] - No new arrangements were made for the acquisition of shares or securities by directors or key executives during the three months ending March 31, 2020[49]

Financial Performance - Total revenue for the year was approximately HKD 142.7 million, a decrease of about 12.1% compared to 2018[13] - The average revenue per project (excluding maintenance and after-sales services) decreased by approximately 16.2% to about HKD 2.22 million[13] - Gross profit for the year was approximately HKD 18.2 million, down about 7.4% from 2018, with a gross margin increase from approximately 12.1% in 2018 to about 12.7% in 2019[13] - The company recorded a loss attributable to owners of approximately HKD 56.4 million, an increase of about 60.5% compared to 2018[14] - The main reasons for the loss included a decrease in revenue, increased operating expenses, and impairment losses on interests in associates and goodwill[14] - The adjusted EBITDA for the year was a loss of HKD 14.8 million, worsening from a loss of HKD 13.6 million in the previous year[29] - The company incurred a loss attributable to shareholders of HKD 56.4 million, compared to a loss of HKD 35.2 million in 2018[29] - Total operating expenses for the year were approximately HKD 37.0 million, an increase of about 5.4% from HKD 35.1 million in 2018[33] - The adjusted EBITDA for the year was approximately -HKD 14.8 million, compared to -HKD 13.6 million in 2018, due to increased operating expenses and a decline in total revenue[33] - The group recorded a loss attributable to the company's owners of approximately HKD 56.4 million, an increase of about 60.5% from approximately HKD 35.2 million in 2018[34] Project and Revenue Outlook - The company has several projects valued at approximately HKD 72.6 million that are expected to contribute to total revenue in 2020 and beyond[14] - The company continues to secure projects from existing and new clients, leveraging its strong reputation and industry experience[14] - The company aims to explore new business lines and expand its core business into different markets to maintain growth and enhance its reputation[28] - The company remains optimistic about the future development of the interior design and renovation industry in Hong Kong, despite current economic and political challenges[22] - The company plans to continue developing existing projects and open new revenue opportunities as economic activities gradually return to normal[18] Financial Position and Cash Flow - As of December 31, 2019, the company had a net cash and cash equivalents of approximately HKD 22.1 million, an increase from HKD 20.7 million as of December 31, 2018[54] - The current ratio as of December 31, 2019, was approximately 1.4 times, down from 1.8 times as of December 31, 2018[54] - Total liabilities as of December 31, 2019, were approximately HKD 116.5 million, compared to HKD 105.3 million as of December 31, 2018[54] - The capital debt ratio as of December 31, 2019, was approximately 688.3%, an increase from 66.9% as of December 31, 2018, primarily due to losses incurred during the year[54] Corporate Governance and Compliance - The board of directors is committed to maintaining good corporate governance practices and believes it is essential for managing business risks and leading the company to success[161] - The company has complied with all corporate governance codes as per GEM listing rules Appendix 15 during the year[162] - The board consists of six directors, including three executive directors and three independent non-executive directors[167] - Independent non-executive directors confirmed their independence according to GEM listing rules[128] - The company has established procedures for directors to seek independent professional advice when necessary[170] Employee and Talent Management - The total employee cost for the year was approximately HKD 20.9 million, an increase from HKD 20.3 million in the previous year, primarily due to enhanced compensation packages to retain talent[71] - The group values employee talent as its most valuable asset and provides a harmonious work environment to foster creativity[107] - The company has a stock option plan effective from July 12, 2016, for a duration of 10 years, aimed at attracting and retaining competent personnel[143] Strategic Initiatives and Investments - The company raised approximately HKD 57.0 million from its IPO, with 100% of the net proceeds allocated to various strategic initiatives[53] - 27% of the net proceeds from the IPO, amounting to HKD 15.225 million, were allocated to recruiting high-quality talent and strengthening company capabilities[53] - The company is investing $HH million in research and development to advance its product line and improve operational efficiency[84] Market and Competitive Landscape - The company faced challenges due to intense competition and the impact of social unrest in Hong Kong, affecting revenue projections for Primo[37] - The group has faced risks related to the inability to secure new contracts, which could significantly impact financial performance[111] Social Responsibility and Community Engagement - The company received multiple awards for corporate social responsibility, including the "Caring Company" logo from the Hong Kong Council of Social Service[16] - The group made charitable and other donations amounting to zero HKD in the current year, compared to 40,000 HKD in 2018[121]

Financial Performance - Total revenue for the nine months ended September 30, 2019, was approximately HKD 90.4 million, a decrease of about 15.9% compared to HKD 107.5 million in the same period of 2018[12]. - Gross profit for the same period was approximately HKD 15.2 million, down about 31.3% from HKD 22.1 million in 2018, resulting in a gross margin decline from 20.6% to 16.8%[12]. - Adjusted EBITDA for the nine months was approximately (HKD 4.0 million), compared to (HKD 3.7 million) in 2018[12]. - The adjusted EBITDA for the nine months ended September 30, 2019, was a loss of approximately HKD 4.0 million, compared to a loss of HKD 3.7 million for the same period in 2018, primarily due to a decrease in revenue and overall gross margin[15]. - The group recorded a loss attributable to the owners of the company of approximately HKD 8.0 million for the nine months ended September 30, 2019, compared to HKD 5.2 million for the same period in 2018[15]. - Basic loss per share for the nine months ended September 30, 2019, was HKD (1.34), compared to HKD (1.00) for the same period in 2018[43]. - The group reported a net loss attributable to owners of the company of HKD 720,000 for the three months ended September 30, 2019, compared to a loss of HKD 5,508,000 in the same period of 2018[43]. Revenue Breakdown - The number of projects decreased by 3.4% to 57 projects, compared to 59 projects in 2018[9]. - Average revenue per project decreased by approximately 11.1% to HKD 1.6 million from HKD 1.8 million in 2018[9]. - The company secured contracts totaling over HKD 60.5 million, with some projects expected to commence in the last quarter of 2019[9]. - The number of office projects decreased by 23.3% to 33, while commercial projects increased by 111.1% to 19[6]. - Revenue from office projects fell by 53.4% to HKD 42.9 million, while revenue from commercial projects surged by 1,033.3% to HKD 44.2 million[8]. - The group's main service revenue for the three months ended September 30, 2019, was HKD 39,095,000, a decrease of 2.8% from HKD 40,219,000 in the same period of 2018[36]. - For the nine months ended September 30, 2019, the total revenue was HKD 90,449,000, down 16.0% from HKD 107,503,000 in the same period of 2018[36]. Expenses and Liabilities - For the nine months ended September 30, 2019, the group's total operating expenses were approximately HKD 22.1 million, compared to HKD 22.2 million for the same period in 2018[15]. - As of September 30, 2019, the group had cash and cash equivalents of approximately HKD 19.0 million, down from HKD 20.7 million as of December 31, 2018[16]. - The current ratio as of September 30, 2019, was approximately 0.9 times, compared to 1.8 times as of December 31, 2018[16]. - Total liabilities as of September 30, 2019, were approximately HKD 97.2 million, down from HKD 105.3 million as of December 31, 2018[16]. - The capital-to-debt ratio as of September 30, 2019, was approximately 2.5%, significantly improved from 66.9% as of December 31, 2018[16]. Corporate Governance - The company was incorporated in the Cayman Islands and primarily engaged in providing interior design and renovation solutions in Hong Kong[31]. - The company has a stock option plan approved on June 15, 2016, which is effective for 10 years starting from July 12, 2016[45]. - As of September 30, 2019, there were no unexercised, granted, canceled, exercised, or expired stock options[46]. - Major shareholders include Mr. Sun Fu Lin with 144,000,000 shares (24.2%), and Climb Up Limited with 115,000,000 shares (19.3%)[54]. - The company has not received any notifications regarding interests or short positions in its shares from any persons other than directors or senior management as of September 30, 2019[55]. - The company has established an audit committee as of June 15, 2016, consisting of three independent non-executive directors[64]. - The audit committee reviewed the unaudited financial information and third-quarter report for the nine months ending September 30, 2019[64]. - The company has adopted a code of conduct for securities trading by directors, which is stricter than the GEM Listing Rules[61]. - The company has complied with all corporate governance codes as per GEM Listing Rules during the nine months ending September 30, 2019[60]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the nine months ending September 30, 2019[62]. - The company has no arrangements that would benefit directors or senior management in acquiring securities of the company or its affiliates as of September 30, 2019[57]. Market Outlook - The company anticipates continued market uncertainty and competition, focusing on enhancing market position and productivity[10]. - The company aims to leverage its reputation and experience to secure new projects and maintain competitive advantages in the market[13]. Other Information - The group did not declare any interim dividends for the nine months ended September 30, 2019, consistent with the previous year[20]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the nine months ended September 30, 2019[22]. - The group had no major contingent liabilities or capital commitments as of September 30, 2019[19]. - The group recorded a total tax expense of HKD 175,000 for the nine months ended September 30, 2019, consistent with the previous year[42]. - Other income for the three months ended September 30, 2019, was HKD 110,000, an increase of 80.3% from HKD 61,000 in the same period of 2018[37]. - The group experienced a net unrealized loss on listed securities of HKD (1,564,000) for the three months ended September 30, 2019[39]. - The group reported a total comprehensive loss of HKD (111,000) due to fair value changes in financial assets[39]. - The group has no tax liabilities in the Cayman Islands or British Virgin Islands[41].

Financial Performance - Total revenue for the six months ended June 30, 2019, was approximately HKD 50.6 million, a decrease of about 24.0% compared to HKD 66.5 million in the same period of 2018[11] - Gross profit for the same period was approximately HKD 7.8 million, down about 51.8% from HKD 16.1 million in 2018, resulting in a gross margin of 15.4%, down from 24.2%[11] - The company reported a loss attributable to owners of approximately HKD 7.3 million for the six months ended June 30, 2019, compared to a profit of HKD 0.3 million in 2018[11] - The adjusted EBITDA for the period was approximately (HKD 5.2 million), compared to HKD 1.8 million in 2018[12] - For the three months ended June 30, 2019, the total comprehensive loss was HKD 5,947,000, compared to a loss of HKD 4,061,000 for the same period in 2018, representing an increase of 46.4%[31] - The basic loss per share for the six months ended June 30, 2019, was HKD 1.22, a decrease from HKD 0.80 in the same period of 2018[31] - For the six months ended June 30, 2019, the company recorded a total loss attributable to owners of HKD (7,268,000), significantly higher than a profit of HKD 285,000 in the same period of 2018[78] Project and Revenue Details - The number of projects completed and in progress decreased by 14.3% to 42 projects in 2019 from 49 projects in 2018[6] - The average revenue per project decreased by 7.7% to approximately HKD 1.2 million in 2019 from HKD 1.3 million in 2018[8] - The company secured contracts totaling over HKD 92.2 million, with some projects expected to commence in the third quarter of 2019[8] - The number of office projects decreased by 25.7% to 26 in 2019, while commercial projects increased by 71.4% to 12[6] - The company's revenue from design and decoration services for the six months ended June 30, 2019, was HKD 50,564,000, a decrease of 24% compared to HKD 66,499,000 for the same period in 2018[66] - The revenue from external customers in Hong Kong for the six months ended June 30, 2019, was HKD 50,564,000, down from HKD 66,499,000 in the same period of 2018, representing a 24% decline[67] - The top five customers accounted for approximately 68% of the total revenue for the six months ended June 30, 2019, compared to 56% in 2018[67] Expenses and Liabilities - For the six months ended June 30, 2019, the group's total operating expenses were approximately HKD 14.8 million, a decrease from HKD 15.3 million in the same period of 2018, primarily due to reduced advertising and marketing expenses[14] - The adjusted EBITDA for the six months ended June 30, 2019, was a loss of approximately HKD 5.2 million, compared to a profit of approximately HKD 1.8 million in the same period of 2018, mainly due to decreased revenue and overall gross margin decline[14] - Total liabilities as of June 30, 2019, were approximately HKD 85.5 million, down from approximately HKD 105.3 million as of December 31, 2018[15] - Current liabilities decreased significantly to HKD 46,546,000 from HKD 83,843,000 in the previous period, indicating a reduction of 44.5%[35] - The company’s current liabilities exceeded current assets, with current liabilities at HKD 46,546,000 and current assets at HKD 7,772,000[44] Cash Flow and Assets - As of June 30, 2019, the group had cash and cash equivalents of approximately HKD 18.0 million, down from approximately HKD 20.7 million as of December 31, 2018[15] - Cash and bank balances at the end of June 30, 2019, were HKD 18,006,000, down from HKD 20,681,000 at the end of 2018, a decrease of 12.9%[33] - The net cash used in operating activities for the six months ended June 30, 2019, was HKD 16,088,000, slightly improved from HKD 17,941,000 in the same period of 2018[40] - The company reported a net cash inflow from investing activities of HKD 4,913,000 for the six months ended June 30, 2019, compared to HKD 27,800,000 in the previous year, indicating a significant decrease of 82.3%[40] - The total equity attributable to owners of the company decreased to HKD 63,676,000 as of June 30, 2019, from HKD 70,944,000 at the end of 2018, a decline of 10.3%[35] - The company’s total assets less current liabilities were HKD 60,711,000 as of June 30, 2019, down from HKD 113,254,000 in the previous period, a decrease of 46.3%[35] Employee and Operational Details - The group had 40 employees as of June 30, 2019, compared to 43 employees as of December 31, 2018[26] - Total employee costs for the six months ended June 30, 2019, were approximately HKD 9.8 million, compared to approximately HKD 9.6 million for the same period in 2018[26] - The company has been actively recruiting high-quality talent to strengthen its capabilities and has updated its IT infrastructure to support business growth[103] - The company has a stock option plan effective for 10 years, aimed at attracting and retaining competent personnel[125] Corporate Governance and Compliance - The company has adhered to all corporate governance codes as per GEM Listing Rules Appendix 15 for the six months ended June 30, 2019[140] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial information and interim report for the six months ended June 30, 2019[143] - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the six months ended June 30, 2019[142] Market and Strategic Initiatives - The company anticipates that the market conditions and economic environment for the remainder of 2019 remain uncertain, with a focus on enhancing customer value and optimizing productivity[9] - The company continues to invest in marketing efforts, including advertising in MTR stations and donations to charities to enhance its corporate image[105] - The company allocated a total of HKD 57,000,000 for various strategic initiatives, with 27% (HKD 15,225,000) dedicated to recruiting high-quality talent[121] - 24% (HKD 13,587,000) of the total budget is earmarked for developing new business categories and potential business collaborations or acquisitions[121] - Market expansion efforts received 19% (HKD 10,788,000) of the total allocation[121] - The company aims to enhance marketing effectiveness and brand awareness, with an investment of HKD 4,860,000, which is 8% of the total[121] - General working capital is set at HKD 5,700,000, accounting for 10% of the total budget[121] Risks and Challenges - The company faces significant risks, including the inability to secure new contracts, which could materially impact financial performance[123] - The reliance on management team performance and project management personnel is critical for operational success[123]

Financial Performance - Total revenue for the three months ended March 31, 2019, increased by approximately 4.5% to about HKD 34.5 million compared to HKD 33.0 million in the same period of 2018[10] - Revenue for the three months ended March 31, 2019, was HKD 34.671 million, an increase from HKD 33.579 million for the same period in 2018[22] - The average revenue per project decreased from approximately HKD 1.27 million in 2018 to about HKD 1.15 million in 2019[8] - Gross profit for the three months ended March 31, 2019, was approximately HKD 5.3 million, a decline of about 36.9% from HKD 8.4 million in 2018[13] - The gross profit margin dropped from approximately 25.2% in 2018 to about 15.3% in 2019 due to increased subcontracting costs from larger commercial projects[13] - Adjusted EBITDA for the three months ended March 31, 2019, was approximately -HKD 1.7 million, compared to HKD 1.1 million in the same period of 2018[14] - The company recorded a loss attributable to owners of approximately HKD 2.9 million for the three months ended March 31, 2019, compared to a profit of about HKD 4.3 million in 2018[14] - The group reported a loss of HKD 2.898 million for the three months ended March 31, 2019, compared to a profit of HKD 4.345 million for the same period in 2018[22] - Basic loss per share for the period was HKD (0.49), compared to earnings of HKD 0.89 for the same period in 2018[22] - For the three months ended March 31, 2019, the company reported a loss attributable to shareholders of HKD (2,905,000), compared to a profit of HKD 4,254,000 for the same period in 2018, representing a year-over-year decline of 168.3%[34] - Basic loss per share for the first quarter of 2019 was HKD (0.49), down from HKD 0.89 in the same quarter of 2018, indicating a decrease of 154.9%[34] Project and Client Activity - The number of projects increased by approximately 15.4% from 26 to 30 projects year-over-year[6] - The company has secured multiple projects totaling approximately HKD 85.9 million, which are expected to contribute to total revenue later in 2019[8] - The company continues to gain projects from existing and new clients, enhancing its reputation and competitive advantage in the market[13] - The group’s primary service revenue included design and renovation services totaling HKD 34.304 million for the three months ended March 31, 2019, compared to HKD 32.992 million in 2018[28] Operating Expenses and Financial Position - Operating expenses for the three months ended March 31, 2019, were approximately HKD 7.5 million, a decrease from HKD 7.8 million in the same period of 2018[13] - As of March 31, 2019, the group had cash and cash equivalents of approximately HKD 15.0 million, down from HKD 20.7 million as of December 31, 2018[16] - The current ratio as of March 31, 2019, was approximately 1.8 times, unchanged from December 31, 2018[16] - Total liabilities as of March 31, 2019, were approximately HKD 104.6 million, a slight decrease from HKD 105.3 million as of December 31, 2018[16] - The capital-to-debt ratio was approximately 70.8% as of March 31, 2019, compared to 66.9% as of December 31, 2018[16] Shareholder Information - Major shareholder Legend Investments International Limited holds 144,004,000 shares, representing 24.2% of the issued voting shares[59] - Climb Up Limited, another major shareholder, holds 115,000,000 shares, also representing 19.3% of the issued voting shares[59] - The weighted average number of ordinary shares increased from 480,000,000 in 2018 to 595,000,000 in 2019, reflecting a growth of 24%[34] Corporate Governance - The company has confirmed compliance with all corporate governance codes as per GEM Listing Rules Appendix 15 during the reporting period[63] - There were no arrangements made that would allow directors or major shareholders to acquire any securities of the company or its affiliates during the reporting period[60] - The company’s operations remain independent from Ace Architectural and Interior Design Limited, a non-wholly owned subsidiary, ensuring no direct competition[62] - The audit committee was established on June 15, 2016, and consists of three independent non-executive directors[67] - The audit committee reviewed the unaudited financial information and the first quarter report for the period ended March 31, 2019[67] Dividends and Acquisitions - The group did not declare any interim dividends for the three months ended March 31, 2019, consistent with the previous year[19] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the three months ended March 31, 2019[20] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ended March 31, 2019[65] Stock Options - The company has a stock option plan effective from July 12, 2016, for a duration of 10 years, aimed at attracting and retaining competent personnel[36] - As of March 31, 2019, there were no unexercised, granted, cancelled, exercised, or lapsed stock options[36]

Financial Performance - The total revenue for the year was approximately HKD 162.4 million, representing an increase of about 36.9% compared to 2017[13]. - The gross profit for the year was approximately HKD 19.6 million, a decrease of about 37.0% compared to 2017, with a gross profit margin dropping from approximately 26.2% to about 12.1%[13]. - The company recorded a loss attributable to owners of approximately HKD 35.2 million, compared to a profit of about HKD 2.5 million in 2017[13]. - Revenue for the year ended December 31, 2018, was approximately HKD 162.4 million, representing a 36.9% increase compared to HKD 118.7 million in 2017[30]. - Gross profit for the same period was approximately HKD 19.6 million, a decrease of about 37.0% from HKD 31.2 million in 2017, resulting in a gross margin decline from 26.2% to 12.1%[30]. - Adjusted EBITDA for the year was approximately (HKD 13.6 million), compared to HKD 4.6 million in 2017, indicating operational challenges[30]. - The adjusted EBITDA for the year was approximately HKD -13.6 million, down from HKD 4.6 million in 2017, attributed to increased operating expenses and a decline in overall gross margin[36]. Project and Market Development - The number of projects increased by 27.1% compared to 2017, excluding maintenance and after-sales service projects[13]. - The average revenue per project (excluding maintenance and after-sales service) increased by approximately 8.6% to about HKD 2.65 million[13]. - The company has secured projects valued at approximately HKD 90.5 million, which are expected to contribute to total revenue in 2019 and beyond[14]. - The commercial project segment saw a significant revenue increase of 920.0%, from HKD 5.0 million in 2017 to HKD 51.0 million in 2018[27]. - The company aims to explore new business lines and expand its core business into different markets to strengthen its market position[10]. - The management remains optimistic about the future development of the interior design and renovation industry in Hong Kong due to the revitalization of industrial buildings[22]. Acquisitions and Investments - In June 2018, the company completed the acquisition of a 49% stake in Primo Group (BVI) Limited, which provides interior design and renovation solutions for luxury residences and offices in Hong Kong[14]. - The company acquired a 60% stake in Ace Architectural and Interior Design Limited and a 49% stake in Primo, enhancing its service offerings in interior design and renovation solutions[23]. - The group reported a significant acquisition of 49% of Primo's shares for HKD 75 million, completed on June 20, 2018[111]. Financial Position and Liabilities - As of December 31, 2018, the company had cash and cash equivalents of approximately HKD 20.7 million, down from HKD 57.9 million at the end of 2017[50]. - The current ratio as of December 31, 2018, was approximately 1.8 times, compared to 2.9 times at the end of 2017[50]. - Total liabilities as of December 31, 2018, were approximately HKD 105.3 million, up from HKD 40.6 million in 2017, primarily due to trade and other payables and borrowings[50]. - The capital-to-debt ratio was approximately 66.9% as of December 31, 2018, reflecting the issuance of promissory notes related to the acquisition of Primo[50]. Corporate Governance and Management - The company has maintained a strong commitment to corporate governance principles and practices[155]. - The board consists of six directors, including three executive directors and three independent non-executive directors[157]. - The company has established an Audit Committee to oversee financial reporting, risk management, and internal control procedures, with four meetings held during the year[180]. - The Remuneration Committee reviewed the remuneration of executive directors and senior management, providing recommendations to the board[186]. - All independent non-executive directors confirmed their independence according to GEM Listing Rules, ensuring compliance with governance standards[174]. Employee and Operational Insights - The total number of employees decreased to 43 as of December 31, 2018, from 49 the previous year[67]. - The company reported a total employee cost of approximately HKD 20.3 million for the year, up from HKD 17.6 million in the previous year, primarily due to enhanced compensation packages[67]. - The company has a diverse board of directors with expertise in finance, engineering, and design, contributing to strategic decision-making[80]. Social Responsibility and Community Engagement - The company continues to receive recognition for its corporate social responsibility efforts, including awards for being a caring company and a happy enterprise[17]. - The company has a strong commitment to community service and environmental sustainability, utilizing eco-friendly materials and practices[73]. - Charitable donations made by the group during the year totaled HKD 40,000, down from HKD 125,700 in 2017[115].