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].
PACIFIC LEGEND(08547) - 2020 - 年度财报