Financial Performance - For the year ended December 31, 2022, the group recorded revenue of approximately HKD 204.0 million, a decrease of about HKD 40.3 million or 16.5% compared to HKD 244.3 million for the year ended December 31, 2021[9]. - The group's loss (after tax) for the year was approximately HKD 47.9 million, including a non-current asset impairment loss of HKD 21.3 million, compared to a loss of approximately HKD 28.2 million for the previous year[9]. - The group's revenue for the year ended December 31, 2022, was approximately HKD 204.0 million, a decrease of about HKD 40.3 million or 16.5% compared to HKD 244.3 million for the previous year[18]. - Furniture sales revenue for the year was HKD 148.2 million, down approximately 10.5% from HKD 165.6 million in the previous year, with retail sales in Hong Kong declining by about 19.1%[19]. - Online business performance decreased by 29.0% compared to the previous year, significantly impacted by the closure of two retail stores in Shanghai[21]. - The group's gross profit decreased by approximately HKD 24.7 million or 18.8% to about HKD 106.4 million, with a slight decline in overall gross profit margin from 53.7% to 52.2%[24]. - The group incurred a loss of approximately HKD 47.9 million for the year, an increase from a loss of HKD 28.2 million in the previous year, primarily due to decreased revenue and increased impairment losses[32]. Dividend and Shareholder Information - The company decided not to recommend the payment of a final dividend for the year ended December 31, 2022[9]. - The company reported a reserve available for distribution to shareholders of HKD 15,039,000 as of December 31, 2022, down from HKD 41,907,000 in 2021[73]. - The board does not recommend the payment of a final dividend for the year[64]. - The company has no predetermined dividend payout ratio, and past dividend distribution records do not serve as a reference for future dividends[166]. Business Development and Strategy - The company successfully launched a large number of furniture combinations for a leading property developer in Hong Kong, expected to be delivered in mid-2023[12]. - The company expanded its online business to a B2B model through the launch of the Indigo Trade website, offering exclusive products to wholesale customers[12]. - The company plans to explore and invest in products targeting local customers due to recent changes in Hong Kong's population structure[14]. - The company is seeking opportunities for new retail store openings and corporate sales in Dubai and Shanghai[14]. - The company anticipates potential growth in demand for interior design and renovation project management services in the coming years[14]. - The company closed its only store in Shanghai but retained its project and distribution business in China, awaiting opportunities for reopening after the economic recovery[12]. Financial Position and Capital Management - As of December 31, 2022, the group's trade and other receivables amounted to HKD 48.6 million, a decrease from HKD 54.9 million in 2021, with trade receivables increasing to HKD 16.4 million from HKD 14.5 million due to new sales from the Dubai project[33]. - The group's cash and cash equivalents were approximately HKD 17.8 million as of December 31, 2022, down from HKD 33.4 million in 2021, with total interest-bearing bank borrowings rising to HKD 7.7 million from HKD 0.9 million[35]. - The debt-to-equity ratio increased to 19.2% as of December 31, 2022, compared to 1.0% in 2021, primarily due to a new bank loan of approximately HKD 5.7 million and a significant loss affecting total equity[36]. - Trade payables decreased to HKD 17.6 million as of December 31, 2022, from HKD 19.8 million in 2021, reflecting a reduction in procurement volume[35]. - The net proceeds from the IPO amounted to approximately HKD 48.5 million, with HKD 24.8 million utilized by December 31, 2021, leaving HKD 23.7 million unutilized[43]. - The company plans to expand its retail network in mainland China and the UAE, allocating approximately HKD 12.3 million for this purpose, with an expected completion date by the end of December 2023[46]. Employee and Management Information - As of December 31, 2022, the group employed 159 individuals, a decrease from 168 in the previous year[49]. - Total employee costs for the year were approximately HKD 62.2 million, down from HKD 68.3 million in the prior year[49]. - The group regularly reviews compensation packages to ensure competitiveness in the market and to attract high-quality employees[49]. - The group contributes a certain percentage of employees' relevant income to the Mandatory Provident Fund (MPF) scheme as per local regulations[50]. - The group is obligated to make specified contributions to the national retirement benefit plans for employees in mainland China[50]. Corporate Governance - The board of directors consists of eleven members, including both executive and independent non-executive directors[128][129]. - The company has confirmed that at least 25% of its issued shares are held by the public, meeting GEM listing rules[119]. - All independent non-executive directors have confirmed their independence according to GEM listing rules[114][130]. - The company has adopted a set of trading rules for directors that comply with GEM listing standards[127]. - The board of directors has established various committees to oversee different responsibilities, ensuring effective management and strategic direction[132]. - The company has implemented a nomination policy to ensure a diverse board in terms of skills, experience, and perspectives[139]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers performance in environmental protection, social engagement, and sustainable development for the year 2022[169]. - The ESG report complies with GEM listing rules and follows international standards for key performance indicators[170]. - The company commits to the accuracy and completeness of the information disclosed in the ESG report[171]. - The company has integrated sustainability into its environmental, social, and governance (ESG) strategy and daily operations, emphasizing the importance of prudent management of environmental and social issues for long-term success[175]. - The company has identified key ESG issues impacting its sustainability, including greenhouse gas emissions, waste management, and energy consumption, and has prioritized these issues based on their significance to the business and stakeholders[180][182]. Risk Management - The company faced significant risks and uncertainties, detailed in the financial statements[66]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[153]. - The company is committed to maintaining effective risk management and internal control systems, which were deemed sufficient for the year[155].
PACIFIC LEGEND(08547) - 2022 - 年度财报