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].

Financial Performance - For the six months ended June 30, 2019, the group recorded unaudited revenue of approximately HKD 126.3 million, an increase of about HKD 7.2 million or 6.0% compared to HKD 119.1 million for the same period in 2018[5] - The unaudited loss (after tax) for the six months ended June 30, 2019, was approximately HKD 15.6 million, an improvement from a loss of HKD 17.0 million for the same period in 2018[5] - Basic and diluted loss per share for the six months ended June 30, 2019, was HKD 1.56, compared to HKD 2.27 for the same period in 2018[5] - The group reported a gross profit of HKD 74.5 million for the six months ended June 30, 2019, compared to HKD 71.6 million for the same period in 2018, reflecting a gross margin improvement[7] - The total comprehensive loss for the period was HKD 15,574 thousand, a slight improvement from a loss of HKD 15,583 thousand in the previous year[13] - The group reported a loss attributable to equity shareholders of approximately HKD 15.6 million in the first half of 2019, compared to a loss of approximately HKD 17.0 million in the same period of 2018[76] Revenue Breakdown - For the three months ended June 30, 2019, external revenue from furniture and home decor sales was HKD 37,025, a decrease of 9.9% from HKD 41,059 in 2018[32] - For the six months ended June 30, 2019, external revenue from furniture and home decor sales was HKD 82,841, down 5.7% from HKD 87,550 in 2018[32] - Revenue from project and hotel services increased significantly to HKD 16,808 for the three months ended June 30, 2019, compared to HKD 9,870 in 2018, representing a growth of 70.5%[32] - Revenue from external customers in Hong Kong for the six months ended June 30, 2019, was HKD 95,045, up from HKD 81,152 in 2018, reflecting a growth of 17.1%[35] - Revenue from project engineering increased by approximately 71.2% to about HKD 34.0 million in the first half of 2019, up from approximately HKD 19.8 million in the same period of 2018[69] Assets and Liabilities - Total current assets as of June 30, 2019, amounted to HKD 202.4 million, an increase from HKD 190.2 million as of December 31, 2018[10] - The total liabilities of the group increased to HKD 131.5 million as of June 30, 2019, compared to HKD 64.6 million as of December 31, 2018[11] - The net asset value of the group decreased to HKD 123.8 million as of June 30, 2019, from HKD 137.6 million as of December 31, 2018[11] - The company’s total assets as of June 30, 2019, were HKD 123,789 thousand, reflecting a decrease from HKD 137,596 thousand at the start of the year[13] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 11,308 thousand for the six months ended June 30, 2019, compared to a net outflow of HKD 16,793 thousand in the same period of 2018[14] - The company’s financing activities resulted in a net cash outflow of HKD 15,395 thousand for the six months ended June 30, 2019, compared to HKD 13,531 thousand in the previous year[14] - The group’s cash and cash equivalents as of June 30, 2019, were HKD 64.1 million, down from HKD 70.2 million as of December 31, 2018[10] - The group’s debt-to-equity ratio increased to 4.7% as of June 30, 2019, compared to 3.7% as of December 31, 2018, primarily due to increased use of import financing tools[81] Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2019[5] - The company paid a dividend of HKD 26.3 million to its sole shareholder, Double Lions, on January 4, 2018[103] - The board does not recommend any interim dividend for the six months ending June 30, 2019[104] - Double Lions Limited holds a significant stake of 634,500,000 shares, representing 63.45% of the total issued shares[98] - John Warren McLennan holds 40.48% of Double Lions Limited, while Tracy-Ann Fitzpatrick holds 20.00%[99] Employee and Operational Costs - Employee costs for the six months ended June 30, 2019, totaled HKD 42,252, an increase from HKD 36,640 in 2018[39] - Management and other operating expenses increased by approximately 11.5% from about HKD 53.9 million in the first half of 2018 to about HKD 60.1 million in the first half of 2019[73] - Total employee costs, share-based payments, and sales commissions amounted to approximately HKD 42.3 million in the first half of 2019, compared to approximately HKD 36.6 million in the same period of 2018[89] Stock Options and Corporate Governance - The stock option plan allows for a maximum of 100,000,000 shares to be issued, which is capped at 30% of the company's total issued share capital[105] - The stock option plan was adopted on June 19, 2018, to reward eligible participants for their contributions[105] - A total of 45,000,000 stock options were granted under the stock option plan as of August 30, 2018[108] - As of June 30, 2019, there were 44,500,000 unexercised stock options remaining, with 500,000 options having lapsed during the six-month period[108] - The company has adhered to corporate governance principles as outlined in the GEM listing rules and has not provided any loans to entities or pledged shares[120]

Financial Performance - For the three months ended March 31, 2019, the group recorded unaudited revenue of approximately HKD 67.8 million, an increase of approximately HKD 5.0 million or 8.0% compared to HKD 62.8 million for the same period in 2018[4]. - The unaudited loss for the three months ended March 31, 2019, was approximately HKD 5.3 million, compared to a loss of approximately HKD 6.4 million for the same period in 2018[4]. - Basic and diluted loss per share for the three months ended March 31, 2019, was HKD 0.53, compared to HKD 0.85 for the same period in 2018[4]. - The group reported a gross profit of HKD 39.4 million for the three months ended March 31, 2019, compared to HKD 37.7 million for the same period in 2018[6]. - Operating loss for the three months ended March 31, 2019, was HKD 4.7 million, an improvement from an operating loss of HKD 6.2 million for the same period in 2018[6]. - Total comprehensive loss attributable to equity shareholders for the three months ended March 31, 2019, was HKD 5.15 million, compared to HKD 6.22 million for the same period in 2018[7]. - The group reported a pre-tax loss of HKD 5,223,000 for the three months ended March 31, 2019, compared to a pre-tax loss of HKD 6,219,000 for the same period in 2018, indicating an improvement in financial performance[24][26]. Revenue Breakdown - Total revenue for the three months ended March 31, 2019, was HKD 67,762,000, an increase from HKD 62,759,000 for the same period in 2018, representing an increase of approximately 8%[27]. - Revenue from furniture and home accessories sales was HKD 45,816,000, while rental income from furniture and home accessories was HKD 4,777,000, and project and hotel services contributed HKD 17,169,000[24]. - Revenue from external customers in Hong Kong was HKD 54,284,000, up from HKD 45,943,000 in 2018, reflecting a growth of approximately 18%[27]. - Furniture sales revenue decreased by approximately 1.5% to about HKD 45.8 million in Q1 2019 from approximately HKD 46.5 million in Q1 2018[39]. - The company recorded franchise sales revenue of HKD 2.1 million in Saudi Arabia, doubling from HKD 1.0 million in the same period last year[41]. - Project engineering revenue increased by approximately 72.1% to about HKD 17.2 million in Q1 2019 from approximately HKD 10.0 million in Q1 2018[41]. - The company experienced a 24.1% decline in furniture rental revenue, dropping to approximately HKD 4.8 million in Q1 2019 from about HKD 6.3 million in Q1 2018[41]. - Same-store sales in Hong Kong decreased from HKD 21.9 million in Q1 2018 to HKD 18.9 million in Q1 2019[39]. Dividend and Shareholder Information - The group did not recommend the payment of an interim dividend for the three months ended March 31, 2019[4]. - The company did not declare any interim dividend for the three months ended March 31, 2019, compared to HKD 26.25 million in the same period of 2018[35][36]. - As of March 31, 2019, Double Lions Limited holds a beneficial interest of 634,500,000 shares, representing 63.45% of the total issued ordinary shares[58]. - The major shareholders include John Warren McLennan with 40.48% and Tracy-Ann Fitzpatrick with 20.00% of Double Lions Limited[60]. - The total number of issued shares as of March 31, 2019, is 1,000,000,000[60]. - Great Metro Limited holds a beneficial interest of 69,075,000 shares, representing 6.91% of the total issued shares[58]. Expenses and Costs - Sales and distribution costs rose by approximately 23.4% from about HKD 12.1 million in Q1 2018 to approximately HKD 14.9 million in Q1 2019, primarily due to increased employee costs and transportation expenses[44]. - Management and other operating expenses increased by approximately 10.1% from about HKD 26.8 million in Q1 2018 to approximately HKD 29.5 million in Q1 2019, with non-recurring listing expenses of HKD 6.2 million incurred in Q1 2018 not repeated in 2019[45]. - Employee costs (excluding sales team) increased by approximately HKD 2.3 million, including HKD 0.9 million related to share-based payments for employee stock options[47]. - The increase in rental expenses of approximately HKD 0.8 million was mainly related to new store openings in Yuen Long, Hong Kong, and Al Wasl Road, Dubai[47]. - The company incurred bank interest expenses of approximately HKD 44,000 in Q1 2019 due to the use of imported loan financing starting from Q2 2018[46]. Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting[77]. - The company has complied with GEM listing rules regarding loans to entities and has not provided any loans to associated companies[78]. - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the required standards[73]. - There are no competitive interests held by directors or major shareholders that could conflict with the company's business[74]. - The company did not grant any rights to directors for acquiring shares or debt securities during the reporting period[71]. Share Options and Securities - A total of 45,000,000 share options were granted under the share option scheme, with an exercise price of HKD 0.22 per share[66]. - No share options were issued, cancelled, or lapsed during the three months ended March 31, 2019, leaving 45,000,000 unexercised options as of that date[68]. - The share option scheme allows for a maximum of 100,000,000 shares to be issued, which is capped at 10% of the issued share capital at the time of approval for any increase[64]. - The fair value of the stock options granted was estimated at HKD 0.137 per share, with an exercise price of HKD 0.22[70]. - The expected volatility used in the binomial model was 51.10%, and the average expected term was 3.88 years[70]. - The expected dividend yield for the stock options is 0%[70]. - The risk-free interest rate used in the valuation was 2.15%, based on Hong Kong Exchange Fund notes[70]. Future Outlook and Strategy - The company anticipates improved performance in Dubai corporate sales in Q2 2019 due to new business developments[41]. - The company plans to continue expanding its project work in all regions and enhance its online capabilities to strengthen competitiveness[37].

Financial Performance - The company recorded revenue of approximately HKD 278.1 million for the year ended December 31, 2018, a slight decrease of HKD 0.5 million or 0.2% compared to HKD 278.6 million for the year ended December 31, 2017[8]. - The company's loss after tax for the year ended December 31, 2018, was approximately HKD 17.4 million, compared to a profit of approximately HKD 3.1 million for the year ended December 31, 2017[8]. - Furniture sales revenue increased by approximately 0.4% to about HKD 191.3 million, up from approximately HKD 190.5 million in the previous year[15]. - The company did not recommend the distribution of dividends for the year ended December 31, 2018[8]. - The overall market conditions in 2018 were challenging, influenced by global economic uncertainties and the impact of the US-China trade war[10]. - Same-store sales revenue in Hong Kong decreased from HKD 88.5 million to HKD 84.3 million, primarily due to renovations and a reduced store size at the Sha Tin location[18]. - Retail revenue at the Sheikh Zayed Road store in Dubai declined by 29.6% year-on-year, attributed to a weak retail market in Dubai[19]. - Revenue from furniture leasing decreased by approximately 18.2% to about HKD 23.1 million, mainly due to the expiration of leasing contracts since 2016[21]. - Project engineering revenue increased by approximately 6.3% to about HKD 63.6 million, driven by an increase in projects in Hong Kong[21]. - Gross profit rose by approximately HKD 3.4 million or about 2.1% to approximately HKD 165.3 million, despite a slight decline in overall revenue[22]. Operational Developments - The company successfully listed on the GEM of the Hong Kong Stock Exchange on July 18, 2018, marking a significant milestone[9]. - The implementation of a new ERP system, Netsuite, is expected to yield higher efficiencies across multiple business areas[11]. - The company plans to continue developing products and services, including enhancing in-store and online B2C design services, to stand out in the market[11]. - The company aims to expand its market share through the development of the Sonder Living@Indigo brand for both retail and B2B markets[11]. - The company is actively seeking suitable retail locations in China, contingent on finding appropriate sites[16]. - The company successfully piloted the use of RFID technology to enhance operational efficiency, with plans for further implementation in Hong Kong[41]. - Seven new employees were hired to support design services and e-commerce activities, with a focus on growth potential areas[43]. - New products were launched to refocus on the Indigo children's brand, including the introduction of the new Pedder series on Tmall[43]. Financial Position - As of December 31, 2018, the company's cash and cash equivalents amounted to approximately HKD 70.2 million, an increase from HKD 45.9 million as of December 31, 2017[30]. - The total bank borrowings as of December 31, 2018, were approximately HKD 5.0 million, compared to none as of December 31, 2017[30]. - The company's debt-to-equity ratio as of December 31, 2018, was 3.7%, indicating a new use of import financing tools for trade payments[31]. - The net proceeds from the share issuance amounted to approximately HKD 48.5 million, with planned allocations including HKD 28.4 million for retail network expansion[38]. - The remaining net proceeds as of December 31, 2018, were deposited in interest-bearing accounts in Hong Kong banks[44]. - The company reported a reserve available for distribution to shareholders of HKD 47,561,000 as of December 31, 2018, compared to a loss of HKD 6,556,000 in 2017[81]. Governance and Management - The company has a commitment to providing independent opinions to the board through its independent non-executive directors[57][60]. - The company completed a restructuring in May 2018 to prepare for its listing on the GEM of the Stock Exchange, with shares listed on July 18, 2018[70]. - The company appointed four new directors during the year, including John Warren McLennan and Tracy-Ann Fitzpatrick, who are eligible for re-election at the next annual general meeting[89]. - The company has established a share option plan, with options granted to certain directors, as detailed in the financial statements[103]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in board composition[160]. - The average tenure of the executive directors and senior management is approximately ten years, indicating a stable leadership team[152]. - The company emphasizes the importance of continuous professional development for all directors, encouraging participation in relevant training programs[158]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to improving its environmental, social, and governance (ESG) performance and has integrated sustainability into its daily operations[184]. - The company aims to reduce waste and protect the environment for future generations, aligning with regulatory expectations on environmental issues[184]. - The company has reported its first ESG report, outlining its performance in environmental protection, social engagement, and stakeholder participation[179]. - Total greenhouse gas emissions for the reporting period amounted to 675.70 tons of CO2 equivalent, with direct emissions from vehicle fuel combustion at 66.50 tons and indirect emissions from purchased electricity at 609.20 tons[195]. - The company generated a total of 87.00 tons of non-hazardous waste from discarded furniture and 2.16 tons from photocopy paper during the reporting period[198]. - The company has not recorded any significant non-compliance incidents related to environmental regulations during the reporting period[190]. - The company has implemented measures to minimize paper usage in administrative processes, including default double-sided printing settings[199]. Compliance and Risk Management - The company has complied with the GEM Listing Rules and has appointed a compliance advisor to ensure adherence to applicable laws and regulations[170]. - The company has established internal control systems across governance, operational management, human resources, and finance, and has conducted annual reviews of these systems[170]. - The company has not established an internal audit function but has engaged an external risk consulting firm to review its internal control systems[170]. - The audit committee is responsible for overseeing the financial reporting process, internal controls, and risk management systems[162].