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]
PACIFIC LEGEND(08547) - 2020 Q3 - 季度财报