Financial Performance - For the fiscal year ended December 31, 2021, the group recorded revenue of approximately HKD 244.3 million, an increase of approximately HKD 24.4 million or 11.1% compared to HKD 219.9 million for the fiscal year ended December 31, 2020[10]. - The group reported a loss (after tax) of approximately HKD 28.2 million for the fiscal year ended December 31, 2021, which included an impairment loss of non-current assets of HKD 17.1 million, compared to a loss of approximately HKD 43.8 million for the previous year[10]. - Overall gross profit decreased by approximately HKD 5.8 million or 4.3% to about HKD 130.3 million, with the overall gross margin dropping from 61.9% to 53.3%[23]. - Other income and gains fell significantly from approximately HKD 15.2 million to about HKD 7.6 million, mainly due to a one-time government subsidy received in the previous year[24]. - Selling and distribution costs decreased by approximately 20.1% to about HKD 44.7 million, primarily due to reduced employee costs and advertising expenses[25]. - Management and other operating expenses decreased by approximately 12.6% to about HKD 103.6 million, mainly due to reduced depreciation of certain non-current assets[26]. - The company's loss attributable to equity shareholders for the year was approximately HKD 28.2 million, a decrease from a loss of HKD 43.8 million in the previous year, primarily due to cost savings totaling HKD 27.0 million and a reduction in non-current asset impairment losses by HKD 2.0 million[30]. Market Outlook - The company anticipates challenges in the Hong Kong market for the next fiscal year due to uncertainties related to the COVID-19 pandemic and the global economic and political environment[14]. - The company expects revenue from markets outside of Hong Kong to continue improving as restrictions related to COVID-19 are eased globally[14]. - The company plans to continue developing products and services in various regions, including increasing in-store and online B2C design services, to stand out in the market[14]. Business Segments - The group operates primarily in three business segments: furniture and home decor sales, furniture leasing, and project and hotel services[16]. - The company experienced significant improvement in corporate sales and project engineering, particularly in the United Arab Emirates, during the second half of the fiscal year[13]. - Furniture sales revenue slightly decreased from approximately HKD 167.4 million to HKD 165.6 million year-on-year, with retail sales in Hong Kong dropping by about 7.9%[18]. - Retail revenue from two stores in Dubai increased by 13.7% year-on-year, attributed to ongoing inventory optimization[18]. - The company's franchise business in Saudi Arabia recorded a sales revenue growth of 19.9%, reflecting increased demand for Indigo products[21]. - Corporate sales in Hong Kong saw a significant decrease of 25.5%, while corporate sales in the UAE improved by 66.0%[21]. - Project engineering business revenue surged by approximately 88.9% from about HKD 31.8 million to approximately HKD 60.1 million[22]. Cost Management - The company has implemented cost reduction measures in the Hong Kong market to simplify operations and align with strategic development plans[14]. - The total employee cost was approximately HKD 68.3 million, a decrease from HKD 74.7 million in the previous year, with the number of employees reduced from 196 to 168[50]. Shareholder Information - The board of directors did not recommend the distribution of a final dividend for the fiscal year ended December 31, 2021[10]. - The company reported a reserve available for distribution to shareholders of HKD 44,921,000 as of December 31, 2021, compared to HKD 36,080,000 in 2020, representing an increase of approximately 24.9%[75]. - The company did not recommend the payment of a final dividend for the year[67]. Governance and Compliance - The company has established a consistent action agreement among its major shareholders regarding their holdings in Double Lions Limited[92]. - The company has received annual confirmations from its controlling shareholders regarding compliance with non-competition commitments[97]. - The company has confirmed compliance with GEM Listing Rules regarding related party transactions and has received an exemption from strict adherence to certain disclosure requirements[106][107]. - The company has maintained compliance with all corporate governance codes during the reporting period[124]. - The board consists of ten members, including four executive directors and six non-executive directors[126][127]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers performance in environmental protection, social engagement, stakeholder participation, and sustainable development for the year 2021[165]. - The company is committed to integrating sustainability into its ESG strategy and daily operations, addressing climate change impacts[171]. - Total greenhouse gas emissions for the year ended December 31, 2021, were 466.00 tons CO2 equivalent, a decrease from 563.67 tons in 2020, representing a reduction of approximately 17.3%[187][188]. - The company generated 1.71 tons of non-hazardous waste from discarded furniture in 2021, significantly down from 112.22 tons in 2020, indicating a reduction of approximately 98.5%[194]. - The company advocates for a green and sustainable work environment, adhering to the "Four Rs" principle (Reduce, Reuse, Recycle, Replace) to minimize waste generation[195]. Future Plans - The company plans to expand its retail network in mainland China and the UAE, with an expected expenditure of HKD 28.4 million, of which HKD 6.4 million has been utilized[42]. - The company aims to enhance its online store and IT capabilities with an investment of HKD 3.9 million, of which HKD 3.6 million has been utilized[42].
PACIFIC LEGEND(08547) - 2021 - 年度财报