香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本 公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示，概不對因本公告全部或任何部份內容而產生或因依賴該等內容而 引致的任何損失承擔任何責任。 PACIFIC LEGEND GROUP LIMITED （於開曼群島註冊成立的有限責任公司） （股份代號：8547） 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 期 間 之 未 經 審 核 第 三 季 度 綜 合 業 績 公 告 Pacific Legend Group Limited（「本公司」）董事會（「董事會」）欣然宣佈本公司及 其附屬公司截至二零二三年九月三十日止九個月期間之未經審核第三季 度 業 績。本 公 告 列 載 本 公 司 二 零 二 三 年 第 三 季 度 報 告 報 告 全 文，乃 符 合 聯交所GEM證券上市規則（「GEM上市規則」）中有關季度業績初步公告附 載的資料之相關規定。本公司二零二三年第三季度報告將於二零二三年 十 一 月 十 四 日 上 載 於 聯 交 所 網 站www.hkexnews.hk 及 本 公 司 的 網 站 www. ...

Financial Performance - For the six months ended June 30, 2023, the group recorded unaudited revenue of approximately HKD 135.9 million, an increase of approximately HKD 53.7 million or 65.3% compared to HKD 82.2 million for the same period in 2022[6]. - The unaudited loss after tax for the six months ended June 30, 2023, was approximately HKD 1.5 million, a significant improvement from a loss of approximately HKD 13.4 million for the same period in 2022[6]. - The basic and diluted loss per share for the six months ended June 30, 2023, was less than HKD 0.01, compared to HKD 1.01 for the same period in 2022[6]. - The group reported a gross profit of HKD 68.8 million for the six months ended June 30, 2023, representing a gross margin of approximately 50.7%, compared to HKD 48.3 million and a gross margin of 58.8% for the same period in 2022[8]. - The group’s operating loss for the six months ended June 30, 2023, was HKD 0.1 million, a significant improvement from an operating loss of HKD 13.0 million for the same period in 2022[8]. - The company reported a pre-tax profit of HKD 3,535,000, despite significant unallocated corporate expenses of HKD 34,411,000[23]. - The company reported a pre-tax loss of HKD 1,454,000 for the six months ended June 30, 2023, an improvement from a pre-tax loss of HKD 13,351,000 in the same period of 2022[29]. - The company's loss attributable to equity shareholders for the first half of 2023 was approximately HKD 70,000, a significant reduction from a loss of approximately HKD 13.4 million in the first half of 2022, primarily due to growth in gross profit[81]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was HKD 85,543,000, with contributions from furniture and home accessories sales at HKD 26,705,000, furniture and home accessories rentals at HKD 8,455,000, and project and hotel services at HKD 50,383,000[23]. - Revenue from furniture and home decor sales was HKD 61,688,000 for the first half of 2023, compared to HKD 35,855,000 for the same period in 2022, marking an increase of 72%[29]. - Revenue from furniture rental business increased by approximately 37.5% to HKD 12.8 million in the first half of 2023, driven by new rental contracts from several embassies in the UAE[73]. - Revenue from external customers in Hong Kong for the three months ended June 30, 2023, was HKD 63,397,000, up from HKD 27,786,000 in the same period of 2022, reflecting a growth of 128%[31]. - The company's project engineering revenue surged approximately 7.4 times to HKD 61.4 million in the first half of 2023, significantly contributing to the second quarter's profit and loss[73]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 110.6 million, a decrease from HKD 116.2 million as of December 31, 2022[9]. - The group’s net asset value increased to HKD 53.3 million as of June 30, 2023, compared to HKD 40.0 million as of December 31, 2022[9]. - The group’s cash and cash equivalents decreased to HKD 10.7 million as of June 30, 2023, from HKD 17.8 million as of December 31, 2022[9]. - The group’s total liabilities decreased to HKD 65.9 million as of June 30, 2023, from HKD 74.5 million as of December 31, 2022[9]. - As of June 30, 2023, trade and other receivables amounted to HKD 50.1 million, up from HKD 48.6 million as of December 31, 2022, with trade receivables increasing to HKD 18.5 million from HKD 16.4 million[82]. Shareholder Information - The company issued 230,700,000 new shares at a price of HKD 0.078 per share, raising approximately HKD 17.6 million net of expenses, with a premium of about 34.48% over the market price[64]. - Following the share consolidation on July 28, 2023, the total number of issued shares was reduced from 1,814,700,000 to 181,470,000[65]. - John Warren MCLENNAN holds 414,500,000 shares, representing 26.17% of the company, while Huang Yongwen holds 257,370,000 shares, representing 16.25%[100]. - The total number of issued shares as of June 30, 2023, was 1,584,000,000[100]. Corporate Governance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2023[6]. - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the GEM Listing Rules during the six-month period ending June 30, 2023[39]. - The board consists of four executive directors, one non-executive director, and five independent non-executive directors, ensuring a proper balance of power and oversight[116]. - The audit committee is composed of three independent non-executive directors, with Mr. Su Wei Cheng serving as the chairman, ensuring appropriate financial oversight[113]. - The company has complied with the corporate governance code as per GEM Listing Rules, although there is a deviation regarding the dual role of the chairman and CEO held by Mr. McLennan[116]. Future Outlook - The company is focusing on expanding its market presence in furniture and home accessories, alongside enhancing its project and hotel service offerings[14]. - Future outlook includes continued investment in new product development and technology to drive growth in the competitive market[14]. - The company plans to focus on customer needs in various regions and markets, developing products and services accordingly for the remainder of 2023[71].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本 公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示，概不對因本公告全部或任何部份內容而產生或因依賴該等內容而 引致的任何損失承擔任何責任。 PACIFIC LEGEND GROUP LIMITED （於開曼群島註冊成立的有限責任公司） （股份代號：8547） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 期 間 之 未 經 審 核 中 期 綜 合 業 績 公 告 Pacific Legend Group Limited（「本公司」）董事會（「董事會」）欣然宣佈本公司及 其附屬公司截至二零二三年六月三十日止六個月期間之未經審核中期業 績。本 公 告 列 載 本 公 司 二 零 二 三 年 中 期 報 告 報 告 全 文，乃 符 合 聯 交 所 GEM證券上市規則（「GEM上市規則」）中有關季度業績初步公告附載的資 料之相關規定。本公司二零二三年中期報告將於二零二三年八月十一日 上載於聯交所網站www.hkexnews.hk 及本公司的網站www.pacificlegendgroup.com ， 而本公司之二零 ...

Financial Performance - For the three months ended March 31, 2023, the group recorded unaudited revenue of approximately HKD 50.4 million, an increase of approximately HKD 11.8 million or 30.53% compared to HKD 38.6 million for the same period in 2022[5] - The unaudited loss for the three months ended March 31, 2023, was approximately HKD 5.0 million, a decrease from a loss of approximately HKD 8.8 million for the same period in 2022[5] - Basic and diluted loss per share for the three months ended March 31, 2023, was HKD 0.34, compared to HKD 0.67 for the same period in 2022[5] - The group reported a gross profit of HKD 26.9 million for the three months ended March 31, 2023, compared to HKD 21.1 million for the same period in 2022, reflecting an increase in gross margin[7] - Operating loss for the three months ended March 31, 2023, was HKD 4.2 million, significantly improved from an operating loss of HKD 8.7 million for the same period in 2022[7] - Total comprehensive loss for the three months ended March 31, 2023, was HKD 5.2 million, compared to HKD 8.8 million for the same period in 2022[8] - The company reported a pre-tax loss of HKD 4,989,000 for the three months ended March 31, 2023, compared to a pre-tax loss of HKD 8,822,000 for the same period in 2022, representing a 43.5% improvement[27] - The loss attributable to equity shareholders for Q1 2023 was approximately HKD 5.0 million, a decrease from a loss of HKD 8.8 million in Q1 2022, primarily due to gross profit growth and savings in management and operating expenses[45] Revenue Breakdown - Revenue from furniture and home accessories sales was HKD 34,983,000, while rental income from furniture and home accessories was HKD 4,380,000, and hotel services contributed HKD 11,027,000[20] - Revenue from external customers in Hong Kong was HKD 29,393,000, an increase of 18.6% from HKD 24,760,000 in 2022[24] - Revenue from the United Arab Emirates rose significantly to HKD 20,221,000, compared to HKD 10,898,000 in the previous year, marking an 85.5% increase[24] - Revenue from furniture sales increased by approximately 17.6% to about HKD 35.0 million in Q1 2023, compared to approximately HKD 29.7 million in Q1 2022[36] - The company's project business revenue rose to HKD 11.0 million in Q1 2023, up from approximately HKD 3.9 million in Q1 2022[39] Expenses and Costs - The company incurred total employee costs of HKD 15,905,000, up from HKD 15,159,000 in the previous year, reflecting a 4.9% increase[27] - Depreciation of property, plant, and equipment was HKD 849,000, down from HKD 974,000 in the same period last year, indicating a 12.8% decrease[27] - The company's sales and distribution costs rose by approximately 17.2% to about HKD 12.2 million in Q1 2023, compared to approximately HKD 10.4 million in Q1 2022[42] - Management and other operating expenses decreased by approximately 6.3% to about HKD 19.8 million in Q1 2023, down from approximately HKD 21.1 million in Q1 2022[43] - The financial expenses for Q1 2023 included approximately HKD 295,000 in bank interest for loans, compared to HKD 2,000 in Q1 2022, and lease liability interest expenses of HKD 449,000, up from HKD 162,000 in the same period last year[44] Shareholder Information - The group’s total equity as of March 31, 2023, was approximately HKD 48.2 million, reflecting an increase from HKD 39.9 million as of January 1, 2023[11] - The total number of issued shares as of March 31, 2023, was 1,584,000,000[50] - As of March 31, 2023, major shareholders included John Warren MCLENNAN and Jennifer Carver, each holding 26.17% of the company's shares[50] - Double Lions Limited holds a significant stake of 414,500,000 shares, representing 26.17% of the total shares issued as of March 31, 2023[55] - Century Great Investments Limited owns 215,050,000 shares, accounting for 13.50% of the total shares[55] - Zhang Weiqiang holds 132,000,000 shares, which is 8.33% of the total shares[55] Dividend and Securities Transactions - The group did not recommend the payment of an interim dividend for the three months ended March 31, 2023[5] - The company did not report any inter-segment revenue for the three months ended March 31, 2023, and 2022[23] - The board of directors did not recommend any interim dividend for the three months ended March 31, 2023[59] - No securities were purchased, sold, or redeemed by the company or its subsidiaries during the three months ended March 31, 2023[61] Future Plans and Investments - The company anticipates completing a large residential property development furniture package project in mid-2023, with related revenue expected to be recognized in Q2 or Q3 2023[34] - As of March 31, 2023, the company had utilized approximately HKD 11.8 million of the net proceeds, with plans to expand retail stores in mainland China and the UAE, and enhance online store capabilities by the end of December 2023[48] - The company plans to open additional retail stores in mainland China and the UAE, with an expected completion date by the end of December 2023[48] - The company aims to enhance its information technology capabilities with an investment of approximately HKD 3.0 million, with HKD 1.79 million already utilized[48] - The company has a strategic focus on potential mergers and acquisitions, utilizing unutilized proceeds from the placement for these opportunities[49] Governance and Compliance - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[68] - The audit committee has been established and is composed of three independent non-executive directors, enhancing financial oversight[65] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance with the GEM Listing Rules[63] - The company has not provided any financial assistance or guarantees to any entities or affiliates as of March 31, 2023[68]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本 公告全部或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 PACIFIC LEGEND GROUP LIMITED （於開曼群島註冊成立的有限責任公司） （股份代號：8547） 截至二零二三年三月三十一日止三個月期間之 未經審核第一季度綜合業績公告 Pacific Legend Group Limited（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附 屬公司截至二零二三年三月三十一日止三個月期間之未經審核第三季度業績。本 公告列載本公司二零二三年第一季度報告報告全文，乃符合聯交所GEM證券上市 規則（「GEM上市規則」）中有關季度業績初步公告附載的資料之相關規定。本公司 二零二三年第一季度報告報告將於二零二三年五月十二日上載於聯交所網站 www.hkexnews.hk及本公司的網站www.pacificlegendgroup.com，而本公司之二零二 三年第一季度報告之印刷版本將於上載後之可行時間內盡快寄發予本公司登記股 東。 承董事會 ...

Financial Performance - For the year ended December 31, 2022, the group recorded revenue of approximately HKD 204.0 million, a decrease of about HKD 40.3 million or 16.5% compared to HKD 244.3 million for the year ended December 31, 2021[9]. - The group's loss (after tax) for the year was approximately HKD 47.9 million, including a non-current asset impairment loss of HKD 21.3 million, compared to a loss of approximately HKD 28.2 million for the previous year[9]. - The group's revenue for the year ended December 31, 2022, was approximately HKD 204.0 million, a decrease of about HKD 40.3 million or 16.5% compared to HKD 244.3 million for the previous year[18]. - Furniture sales revenue for the year was HKD 148.2 million, down approximately 10.5% from HKD 165.6 million in the previous year, with retail sales in Hong Kong declining by about 19.1%[19]. - Online business performance decreased by 29.0% compared to the previous year, significantly impacted by the closure of two retail stores in Shanghai[21]. - The group's gross profit decreased by approximately HKD 24.7 million or 18.8% to about HKD 106.4 million, with a slight decline in overall gross profit margin from 53.7% to 52.2%[24]. - The group incurred a loss of approximately HKD 47.9 million for the year, an increase from a loss of HKD 28.2 million in the previous year, primarily due to decreased revenue and increased impairment losses[32]. Dividend and Shareholder Information - The company decided not to recommend the payment of a final dividend for the year ended December 31, 2022[9]. - The company reported a reserve available for distribution to shareholders of HKD 15,039,000 as of December 31, 2022, down from HKD 41,907,000 in 2021[73]. - The board does not recommend the payment of a final dividend for the year[64]. - The company has no predetermined dividend payout ratio, and past dividend distribution records do not serve as a reference for future dividends[166]. Business Development and Strategy - The company successfully launched a large number of furniture combinations for a leading property developer in Hong Kong, expected to be delivered in mid-2023[12]. - The company expanded its online business to a B2B model through the launch of the Indigo Trade website, offering exclusive products to wholesale customers[12]. - The company plans to explore and invest in products targeting local customers due to recent changes in Hong Kong's population structure[14]. - The company is seeking opportunities for new retail store openings and corporate sales in Dubai and Shanghai[14]. - The company anticipates potential growth in demand for interior design and renovation project management services in the coming years[14]. - The company closed its only store in Shanghai but retained its project and distribution business in China, awaiting opportunities for reopening after the economic recovery[12]. Financial Position and Capital Management - As of December 31, 2022, the group's trade and other receivables amounted to HKD 48.6 million, a decrease from HKD 54.9 million in 2021, with trade receivables increasing to HKD 16.4 million from HKD 14.5 million due to new sales from the Dubai project[33]. - The group's cash and cash equivalents were approximately HKD 17.8 million as of December 31, 2022, down from HKD 33.4 million in 2021, with total interest-bearing bank borrowings rising to HKD 7.7 million from HKD 0.9 million[35]. - The debt-to-equity ratio increased to 19.2% as of December 31, 2022, compared to 1.0% in 2021, primarily due to a new bank loan of approximately HKD 5.7 million and a significant loss affecting total equity[36]. - Trade payables decreased to HKD 17.6 million as of December 31, 2022, from HKD 19.8 million in 2021, reflecting a reduction in procurement volume[35]. - The net proceeds from the IPO amounted to approximately HKD 48.5 million, with HKD 24.8 million utilized by December 31, 2021, leaving HKD 23.7 million unutilized[43]. - The company plans to expand its retail network in mainland China and the UAE, allocating approximately HKD 12.3 million for this purpose, with an expected completion date by the end of December 2023[46]. Employee and Management Information - As of December 31, 2022, the group employed 159 individuals, a decrease from 168 in the previous year[49]. - Total employee costs for the year were approximately HKD 62.2 million, down from HKD 68.3 million in the prior year[49]. - The group regularly reviews compensation packages to ensure competitiveness in the market and to attract high-quality employees[49]. - The group contributes a certain percentage of employees' relevant income to the Mandatory Provident Fund (MPF) scheme as per local regulations[50]. - The group is obligated to make specified contributions to the national retirement benefit plans for employees in mainland China[50]. Corporate Governance - The board of directors consists of eleven members, including both executive and independent non-executive directors[128][129]. - The company has confirmed that at least 25% of its issued shares are held by the public, meeting GEM listing rules[119]. - All independent non-executive directors have confirmed their independence according to GEM listing rules[114][130]. - The company has adopted a set of trading rules for directors that comply with GEM listing standards[127]. - The board of directors has established various committees to oversee different responsibilities, ensuring effective management and strategic direction[132]. - The company has implemented a nomination policy to ensure a diverse board in terms of skills, experience, and perspectives[139]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers performance in environmental protection, social engagement, and sustainable development for the year 2022[169]. - The ESG report complies with GEM listing rules and follows international standards for key performance indicators[170]. - The company commits to the accuracy and completeness of the information disclosed in the ESG report[171]. - The company has integrated sustainability into its environmental, social, and governance (ESG) strategy and daily operations, emphasizing the importance of prudent management of environmental and social issues for long-term success[175]. - The company has identified key ESG issues impacting its sustainability, including greenhouse gas emissions, waste management, and energy consumption, and has prioritized these issues based on their significance to the business and stakeholders[180][182]. Risk Management - The company faced significant risks and uncertainties, detailed in the financial statements[66]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[153]. - The company is committed to maintaining effective risk management and internal control systems, which were deemed sufficient for the year[155].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本 公告全部或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 PACIFIC LEGEND GROUP LIMITED （於開曼群島註冊成立的有限責任公司） （股份代號：8547） 截至二零二二年十二月三十一日止年度之 經審核年度綜合業績公告 Pacific Legend Group Limited（「本公司」）董事會（「董事會」）欣然宣佈本公司及 其附屬公司截至二零二二年十二月三十一日止之經審核年度業績。本公告列載 本公司二零二二年年報全文，乃符合聯交所GEM證券上市規則（「GEM上市規 則」）中有關年度業績初步公告附載的資料之相關規定。本公司二零二二年年報 將於二零二三年三月三十日上載於聯交所網站www.hkexnews.hk及本公司的網 站www.pacificlegendgroup.com，而本公司之二零二二年之年報告印刷版本將於 上載後之可行時間內盡快寄發予本公司登記股東。 承董事會命 Pacific Legend Group Limit ...

Financial Performance - For the nine months ended September 30, 2022, the group recorded unaudited revenue of approximately HKD 143.0 million, a decrease of about HKD 27.7 million or 16.3% compared to HKD 170.7 million for the same period in 2021[4] - The unaudited loss (after tax) for the nine months ended September 30, 2022, was approximately HKD 17.7 million, compared to a loss of HKD 17.2 million for the same period in 2021[4] - Basic and diluted loss per share for the nine months ended September 30, 2022, was HKD 1.34, compared to HKD 1.45 for the same period in 2021[4] - The group reported a gross profit of HKD 77.8 million for the nine months ended September 30, 2022, down from HKD 93.2 million in the same period of 2021, reflecting a decrease of approximately 16.5%[6] - Operating loss for the nine months ended September 30, 2022, was HKD 17.0 million, compared to an operating loss of HKD 16.6 million for the same period in 2021[6] - Total comprehensive loss for the nine months ended September 30, 2022, was HKD 15.5 million, compared to a total comprehensive loss of HKD 17.0 million for the same period in 2021[6] - The group reported other income and gains of HKD 5.9 million for the nine months ended September 30, 2022, compared to HKD 4.8 million for the same period in 2021, representing an increase of approximately 21.5%[6] - The company reported a pre-tax loss of HKD 17,704 for the nine months ended September 30, 2022, compared to a loss of HKD 17,181 for the same period in 2021[32] Revenue Breakdown - For the three months ended September 30, 2022, total revenue was HKD 60,734, with furniture and home accessories sales contributing HKD 37,104, rental income HKD 7,288, and hotel services HKD 16,342[18] - For the nine months ended September 30, 2022, total revenue reached HKD 142,963, with furniture and home accessories sales at HKD 102,699, rental income HKD 16,621, and hotel services HKD 23,643[20] - The gross profit for the three months ended September 30, 2022, was HKD 28,282, with contributions from furniture and home accessories sales at HKD 18,618, rental income HKD 5,676, and hotel services HKD 3,988[18] - The gross profit for the nine months ended September 30, 2022, was HKD 74,162, with furniture and home accessories sales contributing HKD 53,558, rental income HKD 13,116, and hotel services HKD 7,488[20] - Revenue from Hong Kong for the three months ended September 30, 2022, was HKD 35,442 thousand, down 15.5% from HKD 41,727 thousand in 2021[27] - Revenue from the United Arab Emirates for the three months ended September 30, 2022, was HKD 22,638 thousand, slightly down from HKD 22,665 thousand in 2021[27] - Revenue from mainland China (excluding Hong Kong and Macau) for the three months ended September 30, 2022, was HKD 2,654 thousand, a significant decrease of 73.1% from HKD 9,879 thousand in 2021[27] Dividends and Shareholder Information - The board did not recommend the payment of an interim dividend for the nine months ended September 30, 2022[4] - The company did not declare any dividends for the nine months ended September 30, 2022, consistent with the same period in 2021[33] - As of September 30, 2022, John Warren MCLENNAN holds 414,500,000 shares, representing 31.40% of the total issued shares of 1,320,000,000[51] - Double Lions Limited, a major shareholder, also holds 414,500,000 shares, equating to 31.40% of the total issued shares[55] - Major shareholders include Tracy-Ann FITZPATRICK, David Frances BULBECK, and Alison Siobhan BAILEY, each holding 31.40% through various arrangements[55] - The shareholding structure indicates a significant concentration of ownership among a few key individuals and entities[54] Business Operations and Strategy - The company is primarily engaged in the sale and rental of furniture and home accessories, as well as providing design consultancy services related to interior furniture arrangements[9] - The company opened a new store in Dubai Hills Mall in September 2022, contributing to ongoing growth in the UAE market[35] - The company plans to focus on developing products and services in Hong Kong and Dubai, including enhancing B2C design services and expanding project markets in Hong Kong and the Middle East[35] - Cost-cutting measures have been effective in offsetting the impact of reduced revenue on performance, resulting in a loss for the third quarter of 2022 similar to that of 2021[35] - The company launched the Indigo Trade website to expand its online business to B2B customers, offering exclusive products different from retail channels[34] - The group plans to expand its retail network in China and the UAE, with an estimated allocation of approximately HKD 18.7 million for this purpose[49] Stock Options and Governance - The company has adopted a share option scheme allowing the issuance of up to 100,000,000 shares, which is capped at 30% of the company's issued share capital[60] - The share option plan is designed to reward eligible participants for their contributions to the group[60] - The company has established a consistent governance framework, as evidenced by the detailed disclosures regarding shareholdings and options[53] - The total number of shares held by major shareholders reflects a strong alignment of interests among the leadership and the company's performance[54] - The board of directors consists of four executive directors, one non-executive director, and five independent non-executive directors[72] - The company has adopted a code of conduct for directors' securities transactions, which complies with GEM Listing Rules[68] - The company believes that having the same individual serve as both chairman and CEO enhances operational efficiency and business strategy execution[72] Market Challenges - Retail sales revenue in Hong Kong dropped by approximately 18.8% in Q3 2022 compared to Q3 2021, impacted by increased COVID-19 cases and intense price competition[38] - The online business and franchise operations saw declines of approximately 21.2% and 2.2%, respectively, compared to Q3 2021, largely due to store closures in Shanghai[39] Stock Option Valuation - The estimated fair value of the stock options granted is between HKD 0.119 and HKD 0.137, with an exercise price of HKD 0.22[65] - The expected volatility used in the binomial model for valuing stock options is 51.10%[65] - The risk-free interest rate, based on Hong Kong Exchange Fund Bills, is 2.15%[65] - The stock option plan was adopted on June 19, 2018, and is valid for ten years[62] - As of September 30, 2022, a total of 35,450,000 stock options have expired, with no stock options issued or cancelled during the nine-month period[62]

Financial Performance - For the six months ended June 30, 2022, the group recorded unaudited revenue of approximately HKD 82.2 million, a decrease of about HKD 14.3 million or 14.8% compared to HKD 96.5 million for the same period in 2021[5] - The unaudited loss (after tax) for the six months ended June 30, 2022, was approximately HKD 13.4 million, compared to a loss of HKD 22.7 million for the same period in 2021[5] - Basic and diluted loss per share for the six months ended June 30, 2022, was HKD 1.01, compared to HKD 1.95 for the same period in 2021[5] - The group reported a gross profit of HKD 48.3 million for the six months ended June 30, 2022, down from HKD 53.7 million in the same period of 2021, reflecting a gross margin decrease[7] - The company reported a total comprehensive loss of HKD (12,439) thousand for the six months ended June 30, 2022, compared to a loss of HKD (22,502) thousand for the same period in 2021[10] - The loss attributable to equity shareholders for the first half of 2022 was approximately HKD 13.4 million, down from a loss of approximately HKD 22.7 million in the same period of 2021[70] Revenue Breakdown - Total revenue for the three months ended June 30, 2022, was HKD 43,626 thousand, with furniture and home accessories sales contributing HKD 35,855 thousand[21] - Revenue from furniture and home decor sales was HKD 65,595,000 for the six months ended June 30, 2022, compared to HKD 77,558,000 for the same period in 2021, reflecting a decrease of about 15.4%[27] - Revenue from hotel services for the six months ended June 30, 2022, was HKD 7,301,000, down from HKD 11,424,000 in the same period of 2021, a decrease of approximately 36.5%[27] - Revenue from external customers in Hong Kong for the six months ended June 30, 2022, was HKD 52,546,000, down from HKD 60,834,000 in 2021, a decrease of approximately 13.5%[29] - Revenue from the United Arab Emirates for the six months ended June 30, 2022, was HKD 24,754,000, an increase from HKD 22,221,000 in 2021, reflecting a growth of approximately 11.4%[29] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 121.5 million, a decrease from HKD 133.3 million as of December 31, 2021[8] - The net asset value of the group as of June 30, 2022, was HKD 76.3 million, down from HKD 88.7 million as of December 31, 2021[8] - The company’s total liabilities as of June 30, 2022, were HKD 19,898,000, slightly up from HKD 19,811,000 as of December 31, 2021[46] - The total bank borrowings as of June 30, 2022, were approximately HKD 6.4 million, an increase from HKD 0.9 million as of December 31, 2021[79] - The debt-to-equity ratio as of June 30, 2022, was 8.4%, up from 1.0% as of December 31, 2021, reflecting the increase in bank borrowings[81] Cash Flow and Investments - The group’s cash and cash equivalents decreased to HKD 14.7 million as of June 30, 2022, from HKD 33.4 million as of December 31, 2021[8] - The net cash used in investing activities for the six months ended June 30, 2022, was HKD (4,886) thousand, compared to HKD (452) thousand in the same period of 2021[11] - The company has invested HKD 6 million in non-listed funds and HKD 4 million in a non-refundable deposit for a proposed joint venture as of June 30, 2022[85] Operational Efficiency - The group’s operating loss for the six months ended June 30, 2022, was HKD 13.0 million, an improvement from HKD 22.2 million in the same period of 2021[7] - Management and other operating expenses significantly decreased from approximately HKD 57.2 million in the first half of 2021 to approximately HKD 42.9 million in the first half of 2022, a reduction of about 25.0%[68] - Sales and distribution costs decreased from approximately HKD 22.8 million in the first half of 2021 to approximately HKD 22.2 million in the first half of 2022, a reduction of about 2.7%[67] Shareholder Information - John Warren MCLENNAN and Jennifer Carver each hold 414,500,000 shares, representing 31.40% of the company[90] - Major shareholders include Double Lions Limited, which holds 31.40% of the issued ordinary shares[97] - The total number of issued shares as of June 30, 2022, was 1,320,000,000[91] Employee and Management - The total number of employees was 150, down from 168 as of December 31, 2021[88] - Total employee costs for the first half of 2022 were approximately HKD 32.1 million, compared to HKD 39.3 million in the same period of 2021, representing a decrease of about 18.3%[88] - The total compensation for key management personnel for the six months ended June 30, 2022, was HKD 3,198,000, down from HKD 8,828,000 in the same period of 2021[53] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the financial information in this report[113] - The company has adopted a code of conduct for directors regarding securities trading, which complies with GEM listing rules[111] - The board currently consists of four executive directors, one non-executive director, and five independent non-executive directors, ensuring an appropriate balance of power and oversight[115]

Financial Performance - For the three months ended March 31, 2022, the group recorded unaudited revenue of approximately HKD 38.6 million, a decrease of about HKD 8.2 million or 17.5% compared to HKD 46.8 million for the same period in 2021[4] - The unaudited loss for the three months ended March 31, 2022, was approximately HKD 8.8 million, compared to a loss of HKD 9.1 million for the same period in 2021[4] - Basic and diluted loss per share for the three months ended March 31, 2022, was HKD 0.67, compared to HKD 0.81 for the same period in 2021[4] - Gross profit for the three months ended March 31, 2022, was HKD 21.1 million, down from HKD 26.3 million in the same period of 2021, reflecting a decrease of approximately 19.8%[6] - Operating loss for the three months ended March 31, 2022, was HKD 8.7 million, slightly improved from HKD 8.8 million in the same period of 2021[6] - Total comprehensive loss for the three months ended March 31, 2022, was HKD 8.8 million, compared to HKD 8.9 million for the same period in 2021[6] - The group reported a pre-tax loss of HKD 8,822,000 for the three months ended March 31, 2022, compared to a pre-tax loss of HKD 9,073,000 for the same period in 2021[23] - The loss attributable to equity shareholders for the quarter was approximately HKD 8.8 million, a decrease from a loss of about HKD 9.1 million in Q1 2021, mainly due to savings in sales and distribution costs[43] Revenue Breakdown - Total revenue for the three months ended March 31, 2022, was HKD 38,603,000, a decrease of 17.4% compared to HKD 46,780,000 for the same period in 2021[20] - Revenue from furniture and home accessories sales was HKD 29,740,000, down 25.8% from HKD 40,086,000 in the previous year[17][19] - Revenue from project and hotel services was HKD 3,852,000, compared to HKD 2,815,000 in the previous year, reflecting an increase of 36.8%[17][19] - Revenue from furniture and home accessories leasing was HKD 5,011,000, a decrease from HKD 3,879,000 in the previous year[17][19] - Revenue from external customers in Hong Kong was HKD 24,760,000, down 13.8% from HKD 28,723,000 in 2021[20] - The company's online business revenue fell by 23.3% compared to the same period in 2021, primarily due to the reduction in the scale of the rental business in Shanghai[36] - The furniture rental business revenue increased by approximately 29.2% from about HKD 3.9 million in the first quarter of 2021 to about HKD 5.0 million in the first quarter of 2022[36] Expenses and Cost Management - The group’s total operating expenses for the three months ended March 31, 2022, were HKD 27,527,000, compared to HKD 31,293,000 in the same period of 2021[23] - Management and other operating expenses decreased by approximately 20.6% from about HKD 26.6 million in Q1 2021 to about HKD 21.1 million in Q1 2022, primarily due to reduced legal and professional fees and lower employee costs following a mid-2021 restructuring[41] - Financial expenses included a net present value of lease payments for property leases amounting to approximately HKD 162,000, down from HKD 229,000 in Q1 2021[42] Equity and Shareholder Information - As of March 31, 2022, the total equity attributable to owners of the company was HKD 75.9 million[9] - As of March 31, 2022, John Warren MCLENNAN and Jennifer Carver MCLENNAN collectively hold 31.40% of the company's shares, amounting to 414,500,000 shares[47] - The total number of shares issued as of March 31, 2022, was 1,320,000,000, excluding any shares that may be issued upon the exercise of options under the company's share option scheme[47] - Double Lions Limited holds a total of 414,500,000 shares, representing 31.40% of the total shares outstanding[51] - The company has a stock option plan with a maximum issuance limit of 100,000,000 shares, which is 30% of the total issued share capital[55] - As of March 31, 2022, there are 24,640,000 stock options that remain unexercised[57] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors, ensuring proper oversight of financial reporting[65] - The board of directors includes four executive directors, one non-executive director, and five independent non-executive directors, maintaining a balanced governance structure[67] - The company has confirmed no direct or indirect interests in competing businesses among its directors and controlling shareholders[64] - The company has complied with the corporate governance code as per GEM Listing Rules, despite a deviation regarding the dual role of the chairman and CEO[67] - The chairman and CEO, John Warren McLennan, holds both positions to enhance operational efficiency and business strategy execution[67] Future Plans and Utilization of Proceeds - The company plans to focus on product and service development in various regions, including expanding B2C design services and project markets in Hong Kong and the Middle East[31] - The company plans to expand its retail network in mainland China and the UAE, utilizing approximately HKD 18.7 million of the net proceeds, with an expected completion by the end of December 2023[46] - An additional HKD 6.55 million is allocated to enhance the company's online store and IT capabilities, with a completion target by the end of December 2023[46] - The company has earmarked approximately HKD 5.54 million for hiring new employees to support retail expansion in mainland China and the UAE, with an expected completion by the end of December 2023[46] - The company has not fully utilized the net proceeds from the listing due to the fluctuating business environment caused by the COVID-19 pandemic[45]