Financial Performance - For the three months ended March 31, 2022, the group recorded unaudited revenue of approximately HKD 38.6 million, a decrease of about HKD 8.2 million or 17.5% compared to HKD 46.8 million for the same period in 2021[4] - The unaudited loss for the three months ended March 31, 2022, was approximately HKD 8.8 million, compared to a loss of HKD 9.1 million for the same period in 2021[4] - Basic and diluted loss per share for the three months ended March 31, 2022, was HKD 0.67, compared to HKD 0.81 for the same period in 2021[4] - Gross profit for the three months ended March 31, 2022, was HKD 21.1 million, down from HKD 26.3 million in the same period of 2021, reflecting a decrease of approximately 19.8%[6] - Operating loss for the three months ended March 31, 2022, was HKD 8.7 million, slightly improved from HKD 8.8 million in the same period of 2021[6] - Total comprehensive loss for the three months ended March 31, 2022, was HKD 8.8 million, compared to HKD 8.9 million for the same period in 2021[6] - The group reported a pre-tax loss of HKD 8,822,000 for the three months ended March 31, 2022, compared to a pre-tax loss of HKD 9,073,000 for the same period in 2021[23] - The loss attributable to equity shareholders for the quarter was approximately HKD 8.8 million, a decrease from a loss of about HKD 9.1 million in Q1 2021, mainly due to savings in sales and distribution costs[43] Revenue Breakdown - Total revenue for the three months ended March 31, 2022, was HKD 38,603,000, a decrease of 17.4% compared to HKD 46,780,000 for the same period in 2021[20] - Revenue from furniture and home accessories sales was HKD 29,740,000, down 25.8% from HKD 40,086,000 in the previous year[17][19] - Revenue from project and hotel services was HKD 3,852,000, compared to HKD 2,815,000 in the previous year, reflecting an increase of 36.8%[17][19] - Revenue from furniture and home accessories leasing was HKD 5,011,000, a decrease from HKD 3,879,000 in the previous year[17][19] - Revenue from external customers in Hong Kong was HKD 24,760,000, down 13.8% from HKD 28,723,000 in 2021[20] - The company's online business revenue fell by 23.3% compared to the same period in 2021, primarily due to the reduction in the scale of the rental business in Shanghai[36] - The furniture rental business revenue increased by approximately 29.2% from about HKD 3.9 million in the first quarter of 2021 to about HKD 5.0 million in the first quarter of 2022[36] Expenses and Cost Management - The group’s total operating expenses for the three months ended March 31, 2022, were HKD 27,527,000, compared to HKD 31,293,000 in the same period of 2021[23] - Management and other operating expenses decreased by approximately 20.6% from about HKD 26.6 million in Q1 2021 to about HKD 21.1 million in Q1 2022, primarily due to reduced legal and professional fees and lower employee costs following a mid-2021 restructuring[41] - Financial expenses included a net present value of lease payments for property leases amounting to approximately HKD 162,000, down from HKD 229,000 in Q1 2021[42] Equity and Shareholder Information - As of March 31, 2022, the total equity attributable to owners of the company was HKD 75.9 million[9] - As of March 31, 2022, John Warren MCLENNAN and Jennifer Carver MCLENNAN collectively hold 31.40% of the company's shares, amounting to 414,500,000 shares[47] - The total number of shares issued as of March 31, 2022, was 1,320,000,000, excluding any shares that may be issued upon the exercise of options under the company's share option scheme[47] - Double Lions Limited holds a total of 414,500,000 shares, representing 31.40% of the total shares outstanding[51] - The company has a stock option plan with a maximum issuance limit of 100,000,000 shares, which is 30% of the total issued share capital[55] - As of March 31, 2022, there are 24,640,000 stock options that remain unexercised[57] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors, ensuring proper oversight of financial reporting[65] - The board of directors includes four executive directors, one non-executive director, and five independent non-executive directors, maintaining a balanced governance structure[67] - The company has confirmed no direct or indirect interests in competing businesses among its directors and controlling shareholders[64] - The company has complied with the corporate governance code as per GEM Listing Rules, despite a deviation regarding the dual role of the chairman and CEO[67] - The chairman and CEO, John Warren McLennan, holds both positions to enhance operational efficiency and business strategy execution[67] Future Plans and Utilization of Proceeds - The company plans to focus on product and service development in various regions, including expanding B2C design services and project markets in Hong Kong and the Middle East[31] - The company plans to expand its retail network in mainland China and the UAE, utilizing approximately HKD 18.7 million of the net proceeds, with an expected completion by the end of December 2023[46] - An additional HKD 6.55 million is allocated to enhance the company's online store and IT capabilities, with a completion target by the end of December 2023[46] - The company has earmarked approximately HKD 5.54 million for hiring new employees to support retail expansion in mainland China and the UAE, with an expected completion by the end of December 2023[46] - The company has not fully utilized the net proceeds from the listing due to the fluctuating business environment caused by the COVID-19 pandemic[45]
PACIFIC LEGEND(08547) - 2022 Q1 - 季度财报