Financial Performance - For the six months ended June 30, 2021, the group recorded unaudited revenue of approximately HKD 96.5 million, a decrease of about HKD 0.5 million or 0.6% compared to HKD 97.0 million for the same period in 2020[4] - The unaudited loss (after tax) for the six months ended June 30, 2021, was approximately HKD 22.7 million, compared to a loss of HKD 24.2 million for the same period in 2020[4] - Basic and diluted loss per share for the six months ended June 30, 2021, was HKD 1.95, compared to HKD 2.42 for the same period in 2020[4] - The group reported a gross profit of HKD 53.67 million for the six months ended June 30, 2021, down from HKD 58.52 million for the same period in 2020, representing a decrease of approximately 8.5%[6] - The group’s operating loss for the six months ended June 30, 2021, was HKD 22.21 million, compared to an operating loss of HKD 23.42 million for the same period in 2020[6] - The company experienced a pre-tax loss of HKD 22,659,000 for the six months ended June 30, 2021, compared to a loss of HKD 24,150,000 in the same period of 2020[19] - For the six months ended June 30, 2021, the company reported a pre-tax loss of HKD 22,659,000, compared to a loss of HKD 24,186,000 for the same period in 2020, representing a decrease of 6.3%[29] - Loss attributable to equity shareholders narrowed to HKD 22.7 million in the first half of 2021 from HKD 24.2 million in the same period of 2020[57] Revenue Breakdown - Total revenue for the six months ended June 30, 2021, was HKD 96,446,000, a slight decrease of 0.6% from HKD 96,982,000 in the same period of 2020[19] - Revenue from furniture and home accessories sales for the six months ended June 30, 2021, increased by 8.3% to HKD 77,558,000 from HKD 71,684,000 in 2020[19] - Revenue from project and hotel services for the six months ended June 30, 2021, decreased by 28.8% to HKD 11,424,000 from HKD 16,005,000 in 2020[19] - The company reported a significant decrease in revenue from furniture and home accessories rental, which fell to HKD 7,464,000 for the six months ended June 30, 2021, down from HKD 9,293,000 in 2020[19] - Revenue from external customers in Hong Kong decreased to HKD 60,834,000 for the six months ended June 30, 2021, compared to HKD 75,533,000 in 2020, reflecting a decline of 19.5%[20] - Retail revenue in Dubai improved significantly by 40.8% compared to the same period in 2020, aided by the gradual easing of COVID-19 restrictions[49] - The company's online business declined by 20.8% in the first half of 2021 compared to the same period in 2020[51] - Revenue from furniture leasing decreased by 19.7% from approximately HKD 9.3 million in the first half of 2020 to approximately HKD 7.4 million in the first half of 2021[51] - Project engineering revenue fell by approximately 28.6% from HKD 16.0 million in the first half of 2020 to approximately HKD 11.4 million in the first half of 2021[51] Cash and Assets - Total assets less current liabilities as of June 30, 2021, amounted to HKD 89.95 million, down from HKD 102.02 million as of December 31, 2020[7] - The group's cash and cash equivalents decreased to HKD 46.42 million as of June 30, 2021, from HKD 64.49 million as of December 31, 2020[7] - The group’s total equity as of June 30, 2021, was HKD 77.94 million, a decrease from HKD 89.12 million as of December 31, 2020[7] - Cash and cash equivalents decreased to HKD 46,419,000 as of June 30, 2021, down from HKD 52,395,000 at the end of 2020[10] - Non-current assets as of June 30, 2021, totaled HKD 20,997,000, a decrease from HKD 23,540,000 as of December 31, 2020[21] - Trade receivables as of June 30, 2021, amounted to HKD 16,499,000, up from HKD 8,470,000 as of December 31, 2020, indicating a significant increase of 94.5%[34] - Trade and other receivables increased to HKD 42.4 million as of June 30, 2021, compared to HKD 36.3 million as of December 31, 2020[59] Employee and Operational Costs - Employee costs for the six months ended June 30, 2021, totaled HKD 39,300,000, an increase of 2.8% from HKD 38,245,000 in the same period of 2020[29] - The number of employees, including executive directors, decreased to 178 as of June 30, 2021, down from 196 as of December 31, 2020, indicating a reduction of approximately 9.2%[74] - Management and other operating expenses slightly decreased by about 1.5% to HKD 57.2 million in the first half of 2021 from HKD 58.1 million in the same period of 2020[55] - Sales and distribution costs decreased by approximately 18.3% to HKD 22.8 million in the first half of 2021 from HKD 27.9 million in the same period of 2020[54] Dividends and Shareholder Information - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2021[4] - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[30] - No interim dividend was recommended for the six months ended June 30, 2021, consistent with the previous year[89] - As of June 30, 2021, John Warren MCLENNAN and related parties held a total of 414,500,000 shares, representing 34.54% of the company[76] - Double Lions Limited holds 414,500,000 shares, representing 34.54% of the total shares outstanding[87] - As of June 30, 2021, the total number of issued shares was 1,200,000,000[87] Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting[101] - The company has adhered to GEM listing rules and corporate governance codes, with no loans provided to any entities or affiliates[102] - The board believes that having the same individual serve as both chairman and CEO enhances operational efficiency and business strategy execution[102] - The board composition will include three executive directors, one non-executive director, and four independent non-executive directors after the resignation of the executive director and CEO[102] Future Outlook and Strategic Initiatives - The company plans to focus on supplier, product, and service development across regions to stand out in the market[46] - The company anticipates that changes made will gradually show results in the third quarter, maintaining an optimistic outlook for future business directions[46] - The new TRIBE BY INDIGO product line was successfully launched, targeting smaller residential units in Hong Kong[48] - The company closed a store in Yuen Long and is reviewing existing leases for other locations, exploring opportunities for pop-up stores[48] Stock Options and Securities - A total of 45,000,000 stock options were granted under the stock option plan, with 8,480,000 options lapsing during the six months ended June 30, 2021[93] - As of June 30, 2021, there were 26,970,000 stock options outstanding, of which 17,803,600 were exercisable[93] - The estimated fair value of the stock options ranged from HKD 0.119 to HKD 0.137[95] - The exercise price for the stock options is set at HKD 0.22[95] - The expected volatility used in the option pricing model was 51.10%[95] - The company did not purchase, sell, or redeem any of its securities during the six months ended June 30, 2021[97] - No rights were granted to directors or their family members to acquire shares or debentures of the company during the reporting period[96] - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the trading standards as of June 30, 2021[98]
PACIFIC LEGEND(08547) - 2021 - 中期财报