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]
PACIFIC LEGEND(08547) - 2021 Q1 - 季度财报