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].
PACIFIC LEGEND(08547) - 2019 Q1 - 季度财报