Financial Performance - For the fiscal year ended December 31, 2021, the group recorded revenue of approximately HKD 244.3 million, an increase of approximately HKD 24.4 million or 11.1% compared to HKD 219.9 million for the fiscal year ended December 31, 2020[10]. - The group reported a loss (after tax) of approximately HKD 28.2 million for the fiscal year ended December 31, 2021, which included an impairment loss of non-current assets of HKD 17.1 million, compared to a loss of approximately HKD 43.8 million for the previous year[10]. - Overall gross profit decreased by approximately HKD 5.8 million or 4.3% to about HKD 130.3 million, with the overall gross margin dropping from 61.9% to 53.3%[23]. - Other income and gains fell significantly from approximately HKD 15.2 million to about HKD 7.6 million, mainly due to a one-time government subsidy received in the previous year[24]. - Selling and distribution costs decreased by approximately 20.1% to about HKD 44.7 million, primarily due to reduced employee costs and advertising expenses[25]. - Management and other operating expenses decreased by approximately 12.6% to about HKD 103.6 million, mainly due to reduced depreciation of certain non-current assets[26]. - The company's loss attributable to equity shareholders for the year was approximately HKD 28.2 million, a decrease from a loss of HKD 43.8 million in the previous year, primarily due to cost savings totaling HKD 27.0 million and a reduction in non-current asset impairment losses by HKD 2.0 million[30]. Market Outlook - The company anticipates challenges in the Hong Kong market for the next fiscal year due to uncertainties related to the COVID-19 pandemic and the global economic and political environment[14]. - The company expects revenue from markets outside of Hong Kong to continue improving as restrictions related to COVID-19 are eased globally[14]. - The company plans to continue developing products and services in various regions, including increasing in-store and online B2C design services, to stand out in the market[14]. Business Segments - The group operates primarily in three business segments: furniture and home decor sales, furniture leasing, and project and hotel services[16]. - The company experienced significant improvement in corporate sales and project engineering, particularly in the United Arab Emirates, during the second half of the fiscal year[13]. - Furniture sales revenue slightly decreased from approximately HKD 167.4 million to HKD 165.6 million year-on-year, with retail sales in Hong Kong dropping by about 7.9%[18]. - Retail revenue from two stores in Dubai increased by 13.7% year-on-year, attributed to ongoing inventory optimization[18]. - The company's franchise business in Saudi Arabia recorded a sales revenue growth of 19.9%, reflecting increased demand for Indigo products[21]. - Corporate sales in Hong Kong saw a significant decrease of 25.5%, while corporate sales in the UAE improved by 66.0%[21]. - Project engineering business revenue surged by approximately 88.9% from about HKD 31.8 million to approximately HKD 60.1 million[22]. Cost Management - The company has implemented cost reduction measures in the Hong Kong market to simplify operations and align with strategic development plans[14]. - The total employee cost was approximately HKD 68.3 million, a decrease from HKD 74.7 million in the previous year, with the number of employees reduced from 196 to 168[50]. Shareholder Information - The board of directors did not recommend the distribution of a final dividend for the fiscal year ended December 31, 2021[10]. - The company reported a reserve available for distribution to shareholders of HKD 44,921,000 as of December 31, 2021, compared to HKD 36,080,000 in 2020, representing an increase of approximately 24.9%[75]. - The company did not recommend the payment of a final dividend for the year[67]. Governance and Compliance - The company has established a consistent action agreement among its major shareholders regarding their holdings in Double Lions Limited[92]. - The company has received annual confirmations from its controlling shareholders regarding compliance with non-competition commitments[97]. - The company has confirmed compliance with GEM Listing Rules regarding related party transactions and has received an exemption from strict adherence to certain disclosure requirements[106][107]. - The company has maintained compliance with all corporate governance codes during the reporting period[124]. - The board consists of ten members, including four executive directors and six non-executive directors[126][127]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers performance in environmental protection, social engagement, stakeholder participation, and sustainable development for the year 2021[165]. - The company is committed to integrating sustainability into its ESG strategy and daily operations, addressing climate change impacts[171]. - Total greenhouse gas emissions for the year ended December 31, 2021, were 466.00 tons CO2 equivalent, a decrease from 563.67 tons in 2020, representing a reduction of approximately 17.3%[187][188]. - The company generated 1.71 tons of non-hazardous waste from discarded furniture in 2021, significantly down from 112.22 tons in 2020, indicating a reduction of approximately 98.5%[194]. - The company advocates for a green and sustainable work environment, adhering to the "Four Rs" principle (Reduce, Reuse, Recycle, Replace) to minimize waste generation[195]. Future Plans - The company plans to expand its retail network in mainland China and the UAE, with an expected expenditure of HKD 28.4 million, of which HKD 6.4 million has been utilized[42]. - The company aims to enhance its online store and IT capabilities with an investment of HKD 3.9 million, of which HKD 3.6 million has been utilized[42].

香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供上市之市場。有意投資者應了解 投資於該等公司的潛在風險，並應經審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣的證券承受較大的市場波 動風險，同時亦無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示概不會就因本報告全部或任何部分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。 本報告原文乃以英文編製，其後翻譯成中文。中英文版本如有任何歧義，概以英文版為準。本報告已於本公 司網站www.pacificlegendgroup.com登載。 目錄 | 財務摘要 | 3 | | --- | --- | | 簡明綜合損益及其他全面收益表 | 4 | | 簡明綜合權益變動表 | 5 | | 簡明綜合財務報表附註 | 6 | | 管理層討論與分析 | 12 | | 企業管治與其他資料 | 18 | 3 2021 第三季度業績報告 財務摘要 • ...

Financial Performance - For the six months ended June 30, 2021, the group recorded unaudited revenue of approximately HKD 96.5 million, a decrease of about HKD 0.5 million or 0.6% compared to HKD 97.0 million for the same period in 2020[4] - The unaudited loss (after tax) for the six months ended June 30, 2021, was approximately HKD 22.7 million, compared to a loss of HKD 24.2 million for the same period in 2020[4] - Basic and diluted loss per share for the six months ended June 30, 2021, was HKD 1.95, compared to HKD 2.42 for the same period in 2020[4] - The group reported a gross profit of HKD 53.67 million for the six months ended June 30, 2021, down from HKD 58.52 million for the same period in 2020, representing a decrease of approximately 8.5%[6] - The group’s operating loss for the six months ended June 30, 2021, was HKD 22.21 million, compared to an operating loss of HKD 23.42 million for the same period in 2020[6] - The company experienced a pre-tax loss of HKD 22,659,000 for the six months ended June 30, 2021, compared to a loss of HKD 24,150,000 in the same period of 2020[19] - For the six months ended June 30, 2021, the company reported a pre-tax loss of HKD 22,659,000, compared to a loss of HKD 24,186,000 for the same period in 2020, representing a decrease of 6.3%[29] - Loss attributable to equity shareholders narrowed to HKD 22.7 million in the first half of 2021 from HKD 24.2 million in the same period of 2020[57] Revenue Breakdown - Total revenue for the six months ended June 30, 2021, was HKD 96,446,000, a slight decrease of 0.6% from HKD 96,982,000 in the same period of 2020[19] - Revenue from furniture and home accessories sales for the six months ended June 30, 2021, increased by 8.3% to HKD 77,558,000 from HKD 71,684,000 in 2020[19] - Revenue from project and hotel services for the six months ended June 30, 2021, decreased by 28.8% to HKD 11,424,000 from HKD 16,005,000 in 2020[19] - The company reported a significant decrease in revenue from furniture and home accessories rental, which fell to HKD 7,464,000 for the six months ended June 30, 2021, down from HKD 9,293,000 in 2020[19] - Revenue from external customers in Hong Kong decreased to HKD 60,834,000 for the six months ended June 30, 2021, compared to HKD 75,533,000 in 2020, reflecting a decline of 19.5%[20] - Retail revenue in Dubai improved significantly by 40.8% compared to the same period in 2020, aided by the gradual easing of COVID-19 restrictions[49] - The company's online business declined by 20.8% in the first half of 2021 compared to the same period in 2020[51] - Revenue from furniture leasing decreased by 19.7% from approximately HKD 9.3 million in the first half of 2020 to approximately HKD 7.4 million in the first half of 2021[51] - Project engineering revenue fell by approximately 28.6% from HKD 16.0 million in the first half of 2020 to approximately HKD 11.4 million in the first half of 2021[51] Cash and Assets - Total assets less current liabilities as of June 30, 2021, amounted to HKD 89.95 million, down from HKD 102.02 million as of December 31, 2020[7] - The group's cash and cash equivalents decreased to HKD 46.42 million as of June 30, 2021, from HKD 64.49 million as of December 31, 2020[7] - The group’s total equity as of June 30, 2021, was HKD 77.94 million, a decrease from HKD 89.12 million as of December 31, 2020[7] - Cash and cash equivalents decreased to HKD 46,419,000 as of June 30, 2021, down from HKD 52,395,000 at the end of 2020[10] - Non-current assets as of June 30, 2021, totaled HKD 20,997,000, a decrease from HKD 23,540,000 as of December 31, 2020[21] - Trade receivables as of June 30, 2021, amounted to HKD 16,499,000, up from HKD 8,470,000 as of December 31, 2020, indicating a significant increase of 94.5%[34] - Trade and other receivables increased to HKD 42.4 million as of June 30, 2021, compared to HKD 36.3 million as of December 31, 2020[59] Employee and Operational Costs - Employee costs for the six months ended June 30, 2021, totaled HKD 39,300,000, an increase of 2.8% from HKD 38,245,000 in the same period of 2020[29] - The number of employees, including executive directors, decreased to 178 as of June 30, 2021, down from 196 as of December 31, 2020, indicating a reduction of approximately 9.2%[74] - Management and other operating expenses slightly decreased by about 1.5% to HKD 57.2 million in the first half of 2021 from HKD 58.1 million in the same period of 2020[55] - Sales and distribution costs decreased by approximately 18.3% to HKD 22.8 million in the first half of 2021 from HKD 27.9 million in the same period of 2020[54] Dividends and Shareholder Information - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2021[4] - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[30] - No interim dividend was recommended for the six months ended June 30, 2021, consistent with the previous year[89] - As of June 30, 2021, John Warren MCLENNAN and related parties held a total of 414,500,000 shares, representing 34.54% of the company[76] - Double Lions Limited holds 414,500,000 shares, representing 34.54% of the total shares outstanding[87] - As of June 30, 2021, the total number of issued shares was 1,200,000,000[87] Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting[101] - The company has adhered to GEM listing rules and corporate governance codes, with no loans provided to any entities or affiliates[102] - The board believes that having the same individual serve as both chairman and CEO enhances operational efficiency and business strategy execution[102] - The board composition will include three executive directors, one non-executive director, and four independent non-executive directors after the resignation of the executive director and CEO[102] Future Outlook and Strategic Initiatives - The company plans to focus on supplier, product, and service development across regions to stand out in the market[46] - The company anticipates that changes made will gradually show results in the third quarter, maintaining an optimistic outlook for future business directions[46] - The new TRIBE BY INDIGO product line was successfully launched, targeting smaller residential units in Hong Kong[48] - The company closed a store in Yuen Long and is reviewing existing leases for other locations, exploring opportunities for pop-up stores[48] Stock Options and Securities - A total of 45,000,000 stock options were granted under the stock option plan, with 8,480,000 options lapsing during the six months ended June 30, 2021[93] - As of June 30, 2021, there were 26,970,000 stock options outstanding, of which 17,803,600 were exercisable[93] - The estimated fair value of the stock options ranged from HKD 0.119 to HKD 0.137[95] - The exercise price for the stock options is set at HKD 0.22[95] - The expected volatility used in the option pricing model was 51.10%[95] - The company did not purchase, sell, or redeem any of its securities during the six months ended June 30, 2021[97] - No rights were granted to directors or their family members to acquire shares or debentures of the company during the reporting period[96] - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the trading standards as of June 30, 2021[98]

Financial Performance - For the three months ended March 31, 2021, the group recorded unaudited revenue of approximately HKD 46.8 million, an increase of approximately HKD 7.5 million or 19.0% compared to HKD 39.3 million for the same period in 2020[4] - The unaudited loss (after tax) for the three months ended March 31, 2021, was approximately HKD 9.1 million, a significant improvement from a loss of approximately HKD 18.6 million for the same period in 2020[4] - Basic and diluted loss per share for the three months ended March 31, 2021, was HKD 0.81, compared to HKD 1.86 for the same period in 2020[4] - The group reported a gross profit of HKD 26.3 million for the three months ended March 31, 2021, compared to HKD 24.1 million for the same period in 2020, reflecting a gross margin improvement[6] - The group’s operating loss for the three months ended March 31, 2021, was HKD 8.8 million, a decrease from an operating loss of HKD 18.2 million for the same period in 2020[6] - Total comprehensive loss attributable to equity shareholders for the three months ended March 31, 2021, was HKD 8.9 million, compared to HKD 18.6 million for the same period in 2020[6] - The company reported a pre-tax loss of HKD 9,073,000 for the three months ended March 31, 2021, compared to a pre-tax loss of HKD 18,524,000 for the same period in 2020, indicating a reduction in losses by approximately 51%[20] Revenue Breakdown - Revenue from furniture and home accessories sales was HKD 40,086,000, while rental income from furniture and home accessories was HKD 3,879,000, and project and hotel services contributed HKD 2,815,000[15] - The geographical revenue breakdown showed that revenue from Hong Kong was HKD 28,723,000, down from HKD 29,614,000 in 2020, while revenue from the UAE increased to HKD 11,655,000 from HKD 7,295,000, and revenue from China rose to HKD 6,402,000 from HKD 2,417,000[18] Expenses and Costs - The company incurred total operating expenses of HKD 38,057,000, which included sales and distribution costs of HKD 11,420,000 and management expenses of HKD 26,637,000[15] - Employee costs totaled HKD 18,862,000, slightly down from HKD 19,765,000 in the previous year, indicating a reduction of about 5%[20] - The company's sales and distribution costs decreased by approximately 21.4% to about HKD 11.4 million in Q1 2021 from about HKD 14.5 million in Q1 2020[38] - Management and other operating expenses decreased by approximately 6.0% to about HKD 26.6 million in Q1 2021 from about HKD 28.3 million in Q1 2020[39] Shareholder Information - The company issued 200,000,000 shares on February 4, 2021, raising approximately HKD 11.3 million for general working capital, aimed at enhancing financial stability and expanding the shareholder base[27] - As of March 31, 2021, the company had a total of 1,200,000,000 shares issued, excluding any shares that may be issued upon the exercise of options under the company's share option scheme[47] - Major shareholders include Double Lions Limited, holding 634,500,000 shares, which is 52.87% of the total shares[52] - The company’s major shareholders have entered into a concert party agreement, confirming their collective action regarding their shareholdings[54] Dividend Information - The board did not recommend the payment of an interim dividend for the three months ended March 31, 2021[4] - The company did not declare any interim dividend for the three months ended March 31, 2021, consistent with the previous year[26] Future Plans - The company plans to launch a new furniture brand, TRIBE, in Hong Kong in Q2 2021, targeting the growing compact living market segment[28] - The company plans to expand its retail network by opening new retail stores, utilizing approximately HKD 28,382,000, which accounts for 58.6% of the total funds raised[43] - The enhancement of online stores and improvement of IT capabilities will consume around HKD 3,893,000, representing 8.0% of the total funds raised[43] - The company has hired additional employees at a cost of HKD 5,545,000, which is 11.4% of the total funds raised[43] - The company has allocated HKD 5,056,000, or 10.4%, for increasing inventory[43] - General working capital has been allocated HKD 4,043,000, which is 8.4% of the total funds raised[43] Stock Options - A total of 45,000,000 stock options were granted under the stock option plan as of August 30, 2018[60] - As of March 31, 2021, 4,990,000 stock options lapsed, with no options exercised, issued, or canceled during the three months[60] - The total number of unexercised stock options as of March 31, 2021, is 30,460,000, of which 20,103,600 are exercisable[60] - The fair value of the stock options granted is estimated between HKD 0.119 and HKD 0.137[62] - The exercise price for the stock options is set at HKD 0.22[62] - The expected volatility used in the binomial model for option valuation is 51.10%[62] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors[68] - The company has complied with GEM Listing Rules regarding corporate governance and has not provided any loans to entities or affiliates[69] - No rights to acquire shares or debentures were granted to any directors or their associates during the three months ended March 31, 2021[63]

Financial Performance - For the year ended December 31, 2020, the group recorded revenue of approximately HKD 219.9 million, a decrease of approximately HKD 87.8 million or 28.6% compared to the revenue of approximately HKD 307.7 million for the year ended December 31, 2019[9]. - The group reported a loss (after tax) of approximately HKD 43.8 million for the year ended December 31, 2020, which includes a non-current asset impairment loss of HKD 19.1 million, compared to a loss of approximately HKD 7.8 million for the year ended December 31, 2019[9]. - The overall gross profit decreased by HKD 40.1 million or 22.7% to approximately HKD 136.1 million, while the overall gross profit margin increased from 57.3% to 61.9%[20]. - The group's financial loss attributable to equity shareholders was approximately HKD 43.8 million, an increase from HKD 7.8 million in the previous year[28]. - Revenue from furniture sales decreased by approximately 17.2% to about HKD 167.4 million, primarily due to the impact of the COVID-19 pandemic on retail operations in various regions[17]. - The group's project engineering business revenue decreased by approximately 61.7% to about HKD 31.8 million, attributed to project delays and the impact of lockdown measures[19]. - The company's distributable reserves as of December 31, 2020, were HKD 36,080,000, down from HKD 48,966,000 in 2019, representing a decrease of approximately 26.5%[82]. Market Conditions - The overall market conditions in 2020 were challenging due to the COVID-19 pandemic, leading to increased losses compared to 2019, particularly affecting retail sales in the first half of the year[12]. - The upcoming fiscal year is expected to be challenging due to intense competition and market uncertainties caused by the COVID-19 pandemic, which may negatively impact performance in the first half of 2021[13]. - Retail sales revenue in Hong Kong fell by approximately 9.5% due to the pandemic and related restrictions, significantly affecting the first quarter's performance[17]. - Retail revenue from two stores in Dubai declined by 17.6%, also impacted by the pandemic, prompting the group to focus on inventory clearance and marketing activities[18]. Strategic Initiatives - The company plans to launch a new furniture brand in Hong Kong targeting the growing compact living market segment[13]. - The company aims to continue developing products and services to stand out in the market, including enhancing in-store and online B2C design services[13]. - The company will continue to actively reduce costs and simplify operations to align with strategic development plans and seize regional growth opportunities[13]. - The group operates primarily in three business segments: furniture and home decor sales, furniture rental, and project and hotel services[16]. Cost Management - The company has no plans for significant investments or capital assets beyond what was disclosed in the prospectus[47]. - The total employee count as of December 31, 2020, was 196, down from 223 in the previous year[49]. - Total employee costs for the year were approximately HKD 74.7 million, compared to HKD 82.5 million in the previous year, reflecting a decrease of about 9.4%[49]. Corporate Governance - The board consists of seven members, including three independent non-executive directors, meeting GEM listing rules requirements[142]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with GEM listing rules[140]. - The independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[126]. - The company has established a nomination policy to ensure a balanced skill set and diverse perspectives on the board[154]. Environmental, Social, and Governance (ESG) Initiatives - The company has committed to improving its environmental, social, and governance (ESG) strategies, integrating sustainability into daily operations[186]. - The ESG report covers performance from January 1, 2020, to December 31, 2020, and complies with GEM listing rules[180]. - The company is committed to reducing waste and protecting the environment in response to regulatory expectations[186]. - Total nitrogen oxides emissions decreased from 444,866 grams in 2019 to 385,045.12 grams in 2020, representing a reduction of approximately 13.4%[200]. Shareholder Communication - The company has implemented various channels for communication with shareholders, including annual general meetings and reports published on the GEM and company website[172]. - The company has a formal procedure for shareholders to submit written requests to the board for inquiries and proposals[170]. Future Outlook - The company aims to expand its retail network after the COVID-19 pandemic is controlled and the global economy recovers[76]. - The company continues to evaluate its business objectives and may adjust plans based on changing market conditions to ensure growth[45].

Financial Performance - For the nine months ended September 30, 2020, the group recorded unaudited revenue of approximately HKD 165.4 million, a decrease of about HKD 43.4 million or 20.8% compared to HKD 208.8 million for the same period in 2019[5] - The unaudited loss (after tax) for the nine months ended September 30, 2020, was approximately HKD 20.9 million, compared to a loss of HKD 13.4 million for the same period in 2019[5] - Basic and diluted loss per share for the nine months ended September 30, 2020, was 2.09 HK cents, compared to 1.34 HK cents for the same period in 2019[5] - The group reported a gross profit of HKD 100.8 million for the nine months ended September 30, 2020, down from HKD 122.1 million in the same period of 2019, reflecting a decrease of 17.4%[7] - Operating loss for the nine months ended September 30, 2020, was HKD 19.8 million, compared to an operating loss of HKD 11.4 million for the same period in 2019[7] - Total comprehensive loss for the nine months ended September 30, 2020, was HKD 21.2 million, compared to a total comprehensive loss of HKD 13.2 million for the same period in 2019[7] - The group reported other income and gains of HKD 9.1 million for the nine months ended September 30, 2020, compared to HKD 2.1 million for the same period in 2019, indicating a significant increase[7] - The total revenue for the nine months ended September 30, 2020, was HKD 165.4 million, a decrease of 20.8% from HKD 208.8 million in the same period of 2019[24] - Revenue from the furniture sales business decreased by approximately 13.4% from HKD 139.7 million in the first three quarters of 2019 to HKD 121.0 million in 2020[38] - The company reported a pre-tax loss of HKD 20.9 million for the nine months ended September 30, 2020, compared to a loss of HKD 13.4 million for the same period in 2019[32] Dividend and Shareholder Information - The board did not recommend the payment of an interim dividend for the nine months ended September 30, 2020[5] - The board of directors did not recommend any dividend payment for the nine months ended September 30, 2020, consistent with the previous year[33] - No interim dividend has been proposed for the nine months ending September 30, 2020, consistent with the previous year[59] - As of September 30, 2020, John Warren holds 634,500,000 shares, representing 63.45% of the company's total shares[51] - The total number of issued shares as of September 30, 2020, is 1,000,000,000[53] - Major shareholders include Double Lions Limited, which holds 634,500,000 shares, also representing 63.45%[57] - The company has a significant concentration of ownership, with major shareholders collectively holding 63.45% of the shares[56] - The beneficial ownership of Double Lions Limited is distributed among several key individuals, including John Warren and Tracy-Ann, with respective stakes of 40.48% and 20.00%[54] - The company has not disclosed any other individuals or entities with significant shareholdings beyond those mentioned[58] Business Operations and Strategy - The company continues to focus on furniture and home decor sales, rental, and design consulting services as its main business activities[10] - The company successfully applied for the Hong Kong government's "Employment Support Scheme," which will contribute to the financial statements for the third and fourth quarters of 2020[35] - The second store in Shanghai Jing'an District opened in September 2020, which is expected to generate additional revenue through retail, corporate sales, franchising, and distribution in China[35] - The company plans to continue implementing cost-cutting measures established at the beginning of the year to mitigate potential impacts on fourth-quarter performance[35] - The company is actively expanding its product range to combat increasing market competition[38] Revenue Breakdown - For the three months ended September 30, 2020, total revenue was HKD 68.4 million, a decrease of 16.9% compared to HKD 82.4 million in the same period of 2019[24] - The sales revenue from furniture and home accessories was HKD 49.3 million, down 13.3% from HKD 56.9 million year-on-year[24] - The revenue from project and hotel services was HKD 12.8 million, down 34.7% from HKD 19.6 million in the same period of 2019[24] - Revenue from external customers in Hong Kong for the three months ended September 30, 2020, was HKD 48.8 million, a decrease of 18.7% from HKD 60.1 million in 2019[26] - Franchise sales in Saudi Arabia decreased by 26.5% to HKD 5.2 million in the first three quarters of 2020, attributed to COVID-19's impact on the local market[40] - Project engineering revenue fell approximately 46.3% from HKD 53.6 million in the first three quarters of 2019 to about HKD 28.8 million in 2020[40] Cost and Expenses - Selling and distribution costs decreased by approximately 10.9% to HKD 41.4 million in the first three quarters of 2020[44] - Management and other operating expenses slightly decreased by about 1.0% to HKD 88.2 million in the first three quarters of 2020[45] Stock Options and Corporate Governance - The company has granted stock options to Ms. Molly Hien, amounting to 9,980,000 options[52] - The company operates under a stock option plan, which is detailed in the report[53] - The company has established a unified action agreement among its major shareholders, indicating coordinated control over their holdings[60] - The company adopted a share option plan on June 19, 2018, allowing the board to grant options to eligible participants, with a maximum issuance of 100,000,000 shares, representing 30% of the issued share capital[62] - As of September 30, 2020, a total of 45,000,000 options were granted under the plan, with 9,050,000 options having lapsed during the nine months ending September 30, 2020[64] - The number of unexercised options as of September 30, 2020, was 35,450,000, of which 23,397,000 were exercisable[64] - The exercise price for the options is set at HKD 0.22, which is the highest of the share's par value, the closing price on the offer date, or the average closing price over the five trading days prior to the offer date[63] - The estimated fair value of the options granted is between HKD 0.119 and HKD 0.137, with an expected volatility of 51.10% and a risk-free interest rate of 2.15%[67] - The company has not purchased, sold, or redeemed any of its securities during the nine months ending September 30, 2020[69] - The board has confirmed compliance with the trading code for directors during the reporting period, with no known violations[70] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial information in the report[73] - The company has adopted the corporate governance code and confirmed compliance with its principles and provisions[75] - No options were granted to directors or their immediate family members during the nine months ending September 30, 2020[68] Market Impact - Retail performance in Dubai stores declined by 17.0% in the first three quarters of 2020, with ongoing impacts from COVID-19 restrictions[39] - Online business showed slight growth compared to the same period in 2019, as customers shifted to online shopping due to the pandemic[40]

Financial Performance - For the six months ended June 30, 2020, the group recorded unaudited revenue of approximately HKD 97.0 million, a decrease of about HKD 29.3 million or 23.2% compared to HKD 126.3 million for the same period in 2019[5] - The unaudited loss (after tax) for the six months ended June 30, 2020, was approximately HKD 24.2 million, compared to a loss of HKD 15.6 million for the same period in 2019[5] - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD 2.42, compared to HKD 1.56 for the same period in 2019[5] - The group reported an operating loss of HKD 23.418 million for the six months ended June 30, 2020, compared to an operating loss of HKD 14.245 million for the same period in 2019[7] - The group experienced a decrease in gross profit to HKD 58.518 million for the six months ended June 30, 2020, from HKD 74.476 million for the same period in 2019[7] - The company reported a pre-tax loss of HKD 24,150,000 for the six months ended June 30, 2020, compared to a loss of HKD 15,417,000 in 2019, representing a 56.4% increase in losses[28] - The company's loss attributable to equity shareholders for the first half of 2020 was approximately HKD 24.2 million, compared to a loss of HKD 15.6 million in the same period of 2019[67] Assets and Liabilities - The total assets less current liabilities as of June 30, 2020, amounted to HKD 129.354 million, down from HKD 151.168 million as of December 31, 2019[8] - The group's total equity as of June 30, 2020, was HKD 108.956 million, down from HKD 132.428 million as of December 31, 2019[10] - Cash and cash equivalents decreased to HKD 52,395,000 as of June 30, 2020, down 18.2% from HKD 64,079,000 at the end of June 2019[13] - Trade receivables decreased from HKD 19,405,000 on December 31, 2019, to HKD 14,811,000 on June 30, 2020, representing a reduction of approximately 23.5%[12] - Trade payables decreased from HKD 25,763,000 on December 31, 2019, to HKD 20,133,000 on June 30, 2020, a decline of about 21.8%[45] - The total bank loans amounted to approximately HKD 3.7 million as of June 30, 2020, compared to HKD 5.4 million as of December 31, 2019[73] - The debt-to-equity ratio was 3.4% as of June 30, 2020, a decrease from 4.1% as of December 31, 2019, indicating reduced reliance on imported financing tools[74] Revenue Breakdown - Total revenue for the six months ended June 30, 2020, was HKD 96,982,000, down 23.2% from HKD 126,340,000 in the same period of 2019[28] - The furniture and home accessories sales segment generated revenue of HKD 71,684,000 for the six months ended June 30, 2020, a decline of 13.4% from HKD 82,841,000 in 2019[28] - Revenue from Hong Kong for the six months ended June 30, 2020, was HKD 75,533,000, a decrease of 20.6% compared to HKD 95,045,000 in 2019[29] - Revenue from the United Arab Emirates for the six months ended June 30, 2020, was HKD 13,593,000, down 32.5% from HKD 20,097,000 in 2019[29] - Revenue from project engineering business dropped by approximately 52.9% to about HKD 16.0 million in the first half of 2020, down from HKD 34.0 million in the same period of 2019[60] Cash Flow and Expenses - For the six months ended June 30, 2020, the net cash generated from operating activities was HKD 1,916,000, a decrease of 83.1% compared to HKD 11,308,000 in 2019[13] - The company incurred financing activities cash outflow of HKD 16,596,000 for the six months ended June 30, 2020, compared to HKD 15,395,000 in 2019, indicating a 7.8% increase in financing costs[13] - The total cash outflow from investing activities was HKD 4,412,000 for the six months ended June 30, 2020, compared to HKD 2,041,000 in 2019, reflecting a 116.5% increase in investment expenditures[13] - Management and other operating expenses decreased by approximately 3.4% to HKD 58.1 million in the first half of 2020, down from HKD 60.1 million in the same period of 2019[65] Employee Costs and Government Support - The total employee costs for the six months ended June 30, 2020, were HKD 38,245,000, a decrease of 10.5% from HKD 42,616,000 in 2019[33] - The company received a government subsidy of HKD 3,383,000 under the "Employment Support Scheme" in July 2020 to support employee costs for the third quarter[54] - The company recognized a rental payment reduction of HKD 2,100,000 during the reporting period due to COVID-19 related rent concessions[18] Shareholder Information - As of June 30, 2020, John Warren holds 634,500,000 shares, representing 63.45% of the company[83] - The total number of issued shares as of June 30, 2020, is 1,000,000,000[87] - Great Metro Limited holds 65,075,000 shares, accounting for 6.51% of the issued share capital[91] - The company has a stock option plan under which Molly Hien has been granted options totaling 9,980,000 shares, representing 1.00%[86] - Double Lions Limited, a major shareholder, holds 634,500,000 shares, equivalent to 63.45%[91] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial information in the report, although it has not been audited by the company's auditors[108] - The company has complied with the GEM Listing Rules and has not provided any loans to any entities or pledged any shares[109] - The company has established a code of conduct for directors regarding securities trading, confirming compliance with the required standards[104]

Financial Performance - For the three months ended March 31, 2020, the group recorded unaudited revenue of approximately HKD 39.3 million, a decrease of approximately HKD 28.4 million or 42.0% compared to HKD 67.8 million for the same period in 2019[4] - The unaudited loss (after tax) for the three months ended March 31, 2020, was approximately HKD 18.6 million, compared to a loss of approximately HKD 5.3 million for the same period in 2019[4] - Basic and diluted loss per share for the three months ended March 31, 2020, was HKD 1.86, compared to HKD 0.53 for the same period in 2019[4] - The group experienced an operating loss of HKD 18.2 million for the three months ended March 31, 2020, compared to an operating loss of HKD 4.7 million for the same period in 2019[6] - The group’s total comprehensive loss attributable to equity shareholders for the three months ended March 31, 2020, was HKD 18.6 million, compared to HKD 5.3 million for the same period in 2019[7] - The group’s gross profit for the three months ended March 31, 2020, was HKD 24.1 million, down from HKD 39.4 million for the same period in 2019[6] - The company reported a pre-tax loss of HKD 18,524,000 for the three months ended March 31, 2020, compared to a pre-tax loss of HKD 5,223,000 for the same period in 2019[20] - The company incurred a loss attributable to equity shareholders of approximately HKD 18.6 million in Q1 2020, compared to a loss of about HKD 5.3 million in Q1 2019[45] Revenue Breakdown - Total revenue for the three months ended March 31, 2020, was HKD 39,326,000, a decrease of 42% compared to HKD 67,762,000 for the same period in 2019[20] - The furniture and home decor sales segment generated HKD 30,031,000, down 34% from HKD 45,816,000 year-over-year[20] - The furniture rental segment earned HKD 4,155,000, consistent with the previous year's HKD 4,777,000[20] - The project and hotel services segment revenue fell to HKD 5,140,000 from HKD 17,169,000, marking a decline of 70% year-over-year[20] - Revenue from external customers in Hong Kong decreased to HKD 29,614,000 from HKD 54,284,000, a drop of 45%[23] - Revenue from furniture sales decreased by approximately 34.5% to about HKD 30.0 million in Q1 2020, down from approximately HKD 45.8 million in Q1 2019[35] - Same-store retail sales in Hong Kong dropped from HKD 22.4 million in Q1 2019 to HKD 14.6 million in Q1 2020, reflecting a significant impact from social unrest and the COVID-19 pandemic[35] - Retail revenue from the Dubai stores declined by 32.5% in Q1 2020 compared to the same period in 2019, due to economic disruptions caused by the pandemic and falling oil prices[36] - The company's online business decreased by 11.3% compared to the same period in 2019, primarily due to the impact in Hong Kong[38] - The project engineering business revenue fell by approximately 70.1% to about HKD 5.1 million in Q1 2020, down from approximately HKD 17.2 million in Q1 2019[39] Dividend and Share Options - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2020[4] - The company did not declare any interim dividend for the three months ended March 31, 2020, consistent with the previous year[30] - No interim dividend was recommended for the three months ended March 31, 2020[61] - A total of 45,000,000 share options were granted under the share option scheme as of August 30, 2018[66] - As of March 31, 2020, there were 44,500,000 unexercised share options, with 14,685,000 options being exercisable[66] - The exercise price for the share options is set at HKD 0.22, with a maximum issuance limit of 100,000,000 shares under the scheme[65] - The estimated fair value of the granted share options ranges from HKD 0.119 to HKD 0.137[69] - The expected volatility used in the binomial model for option valuation is 51.10%[69] - No share options were issued, cancelled, or lapsed during the three months ended March 31, 2020[66] Company Operations and Strategy - The group primarily engages in the sale and rental of furniture and home accessories, as well as providing design consulting services related to indoor furniture arrangement[12] - Employee costs decreased to HKD 19,765,000 from HKD 21,207,000, reflecting a reduction in salaries and benefits[25] - The company faced challenges in retail and corporate sales due to the COVID-19 pandemic, impacting performance across all business segments[32] - The company plans to utilize the net proceeds of approximately HKD 48.5 million from its IPO for purposes disclosed in the prospectus dated June 29, 2018[46] - The company plans to expand its retail network by opening new retail stores, allocating approximately HKD 28,382,000, which accounts for 58.6% of the total funds used[47] - Investment in enhancing online stores and improving IT capabilities amounts to HKD 3,893,000, representing 8.0% of the total funds used[47] - The company has hired additional employees, with an expenditure of HKD 5,545,000, which is 11.4% of the total funds used[47] - For the planned new store openings, the company allocated HKD 1,556,000 for hiring, which is 3.2% of the total funds used[47] - Inventory increase accounted for HKD 5,056,000, representing 10.4% of the total funds used[47] - General working capital was fully utilized with an allocation of HKD 4,043,000, which is 8.4% of the total funds used[47] - As of March 31, 2020, the total net funds used amounted to HKD 48,475,000, with HKD 19,265,000 already utilized and HKD 29,210,000 remaining[47] Governance and Leadership - Major shareholders include Double Lions Limited, holding 634,980,000 shares, which is 63.50% of the total shares[56] - John Warren McLennan and Jennifer Carver McLennan each hold 634,980,000 shares, representing 63.50% ownership[49] - The total number of issued shares as of March 31, 2020, was 1,000,000,000[51] - The audit committee consists of three independent non-executive directors, ensuring proper financial oversight[76] - The company has complied with the GEM Listing Rules regarding securities trading by directors[72] - The board of directors includes executive directors John Warren MCLENNAN, Tracy-Ann FITZPATRICK, and Mo Li-Hsien, along with non-executive and independent directors[78] - Tracy-Ann FITZPATRICK serves as the Executive Director, Vice Chairman, and CEO of Pacific Legend Group Limited[78] - The report is dated May 12, 2020, indicating the company's ongoing commitment to transparency and communication with stakeholders[78] - The board composition reflects a mix of executive and independent directors, which may enhance governance and decision-making processes[78] - The presence of independent directors suggests a focus on accountability and oversight within the company's operations[78] - The company is likely to continue pursuing strategic initiatives under the leadership of its executive team[78] - The report highlights the importance of collaboration among board members to drive company performance[78] - The executive team's experience may contribute to effective market strategies and operational efficiency[78] - The board's diverse expertise could facilitate better risk management and strategic planning[78] - The ongoing leadership structure aims to support the company's growth and adaptability in a changing market environment[78]

Financial Performance - For the year ended December 31, 2019, the group recorded revenue of approximately HKD 307.7 million, an increase of approximately HKD 29.6 million or 10.6% compared to HKD 278.1 million for the year ended December 31, 2018[8]. - The group's loss (after tax) for the year ended December 31, 2019, was approximately HKD 7.8 million, a decrease from a loss of approximately HKD 17.4 million for the year ended December 31, 2018[8]. - Overall gross profit increased by HKD 10.9 million or 6.6% to approximately HKD 176.2 million, despite a decline in overall gross margin from 59.4% to 57.3%[23]. - The company reported a loss attributable to equity shareholders of approximately HKD 7.8 million, a decrease from the previous year's loss of HKD 17.4 million[33]. - The company reported a reserve available for distribution to shareholders of HKD 48,980,000 as of December 31, 2019, compared to HKD 47,561,000 in 2018, reflecting an increase of approximately 3%[87]. - The company did not recommend the payment of a final dividend for the year[78]. Revenue Sources - Revenue from furniture sales increased by approximately 5.7% to about HKD 202.2 million, primarily due to growth in corporate sales in Hong Kong[16]. - Same-store retail sales revenue in Hong Kong decreased from HKD 78.8 million to HKD 74.1 million, mainly due to renovations and a reduction in store size at the Sha Tin location[16]. - Retail revenue from Hong Kong decreased due to social unrest, with online sales increasing by 22.9% year-over-year[17]. - Retail revenue from Dubai's Sheikh Zayed Road store declined by 34.1%, while Al Wasl Road store's sales increased overall by 9.1%[18]. - Sales in Shanghai's Anfu Road store dropped by approximately 21.2% to HKD 10.1 million, attributed to increased competition and weakened consumer sentiment[18]. - Corporate sales in Hong Kong rose significantly from HKD 35.4 million to HKD 41.8 million due to innovative solutions provided to property developers[19]. - Furniture rental revenue decreased by approximately 2.8% to about HKD 22.5 million, primarily due to the expiration of rental contracts[20]. - Project engineering revenue increased by approximately 30.5% to about HKD 83.0 million, driven by a significant hotel project completed in Dubai[20]. Operational Challenges - The overall market environment remains challenging, with expectations of negative impacts on performance due to COVID-19 and ongoing social unrest in Hong Kong[12]. - The company aims to simplify operations and reduce costs to align with strategic development plans[12]. - The company’s mission for 2020 is to enhance customer experiences through continuous product and service development[12]. Strategic Developments - The company plans to open a new store in a prominent location in Shanghai later in the year[12]. - The company plans to open a second retail location in Shanghai in the second quarter of 2020, although this plan has faced delays due to current market conditions[50]. - A new customer management system and marketing automation software are set to launch in the second quarter of 2020, aimed at improving website functionality and customer engagement[50]. - The company has successfully piloted the use of RFID technology to enhance operational efficiency, with plans for further implementation in 2020[50]. Financial Position - As of December 31, 2019, the group's cash and cash equivalents amounted to approximately HKD 71.6 million, an increase from HKD 70.2 million as of December 31, 2018[40]. - The group's total bank borrowings were approximately HKD 5.4 million as of December 31, 2019, compared to HKD 5.0 million as of December 31, 2018[40]. - The debt-to-equity ratio increased to 4.1% as of December 31, 2019, from 3.7% as of December 31, 2018, primarily due to increased use of import financing tools for trade payments[41]. Corporate Governance - The company has established a risk management and internal control system, which was reviewed by the audit committee during the year[170]. - The board consists of seven members, including three independent non-executive directors, meeting the GEM listing requirements[156]. - The independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance[138]. - The company has adopted a set of securities trading guidelines for directors, adhering to the GEM listing rules[151]. - The company has established multiple communication channels with shareholders, including annual general meetings and reports published on the GEM and company website[187]. Management and Personnel - The total number of employees in the group was 223, an increase from 210 in 2018[57]. - Total employee costs for the year were approximately HKD 82.5 million, compared to HKD 77.8 million in the previous year, reflecting a year-over-year increase of about 9%[57]. - The average tenure of the executive directors and senior management is eleven years, indicating a stable management team[157]. Compliance and Regulations - The company has confirmed compliance with GEM Listing Rules regarding related party transactions and has received a waiver from strict adherence to certain disclosure requirements[128]. - The company has appointed a compliance advisor to ensure adherence to GEM listing rules and relevant regulations[180]. - The auditor for the year was Tien Cheung Hong Kong CPA Limited, which will be proposed for reappointment at the upcoming annual general meeting[148].

Financial Performance - For the nine months ended September 30, 2019, the group recorded unaudited revenue of approximately HKD 208.8 million, an increase of approximately HKD 28.7 million or 15.9% compared to HKD 180.1 million for the same period in 2018[5]. - The unaudited loss (after tax) for the nine months ended September 30, 2019, was approximately HKD 13.4 million, a significant improvement from a loss of approximately HKD 24.0 million for the same period in 2018[5]. - Basic and diluted loss per share for the nine months ended September 30, 2019, was 1.34 HKD cents, compared to 2.94 HKD cents for the same period in 2018[5]. - The group reported a gross profit of approximately HKD 122.1 million for the nine months ended September 30, 2019, compared to HKD 109.1 million for the same period in 2018, reflecting a gross margin improvement[7]. - Operating loss for the nine months ended September 30, 2019, was approximately HKD 11.4 million, a reduction from an operating loss of approximately HKD 23.9 million for the same period in 2018[7]. - Total comprehensive loss attributable to equity shareholders for the nine months ended September 30, 2019, was approximately HKD 13.2 million, compared to a loss of approximately HKD 23.9 million for the same period in 2018[8]. - The group’s total equity as of September 30, 2019, was approximately HKD 126.6 million, reflecting a decrease from HKD 137.6 million as of January 1, 2019[10]. Revenue Breakdown - Revenue for the three months ended September 30, 2019, was HKD 82,412,000, an increase of 35.3% compared to HKD 60,915,000 for the same period in 2018[28]. - Revenue for the nine months ended September 30, 2019, reached HKD 208,752,000, up 15.9% from HKD 180,054,000 in the previous year[28]. - Sales from furniture and home decor for the three months ended September 30, 2019, were HKD 56,908,000, a 37.0% increase from HKD 41,549,000 in 2018[28]. - Revenue from external customers in Hong Kong for the three months ended September 30, 2019, was HKD 60,067,000, a 30.9% increase from HKD 45,871,000 in 2018[31]. - Revenue from furniture sales increased by approximately 8.2% to about HKD 139.7 million in the first three quarters of 2019, driven by the completion of several show flats[44]. - Corporate sales in Hong Kong surged approximately 65.7% in the third quarter due to the completion of multiple show flats[46]. - Online business revenue grew by 17.6% compared to the first three quarters of 2018[48]. - Project engineering revenue increased by approximately 63.3% to about HKD 53.6 million in the first three quarters of 2019, partly due to a large hotel project in the U.S.[50]. Expenses and Costs - Sales and distribution costs increased by approximately 13.5% from about HKD 40.9 million in the first three quarters of 2018 to about HKD 46.5 million in the first three quarters of 2019, primarily due to new store operations and rising employee costs[52]. - Management and other operating expenses rose by approximately 7.9% from about HKD 82.6 million in the first three quarters of 2018 to about HKD 89.1 million in the first three quarters of 2019, with no listing expenses recorded in 2019[53]. - The group incurred bank interest expenses of approximately HKD 189,000 in the first three quarters of 2019, compared to HKD 66,000 in the same period of 2018[54]. Dividends and Shareholder Information - The group did not recommend the payment of an interim dividend for the nine months ended September 30, 2019[5]. - The company did not recommend any dividend distribution for the nine months ended September 30, 2019[38]. - Double Lions Limited holds 634,500,000 shares, representing 63.45% of the total shares outstanding[68]. - John Warren McLennan, Tracy-Ann Fitzpatrick, Alison Siobhan Bailey, John Martin Rinderknecht, and James Seymour Dickson Leach collectively own 100% of Double Lions Limited through a concerted action agreement[69]. - The company paid a dividend of HKD 26.3 million to its sole shareholder, Double Lions, on January 4, 2018[73]. Stock Options and Employee Costs - A total of 45,000,000 stock options were granted under the stock option plan, with 500,000 options having expired during the nine-month period ending September 30, 2019[78]. - As of September 30, 2019, there are 44,500,000 unexercised stock options remaining, with 29,815,000 options exercisable after September 30, 2019[79]. - Employee costs (excluding sales team) increased by approximately HKD 4.6 million, including share-based payments of HKD 2.3 million related to employee stock options[55]. - The company experienced a foreign exchange loss of HKD 1.1 million, primarily due to the depreciation of the Renminbi in 2019[55]. Compliance and Governance - The company has adopted a code of conduct for directors regarding securities trading, which complies with GEM Listing Rules[85]. - The audit committee consists of three independent non-executive directors with appropriate accounting and financial management expertise[88]. - The company has complied with GEM Listing Rules and has not provided any financial assistance or guarantees to associated companies[90].