Financial Performance - For the year ended December 31, 2023, the group's revenue was approximately HKD 250.6 million, an increase of about HKD 46.6 million or 22.8% compared to the revenue of approximately HKD 204.0 million for the year ended December 31, 2022[9]. - The group's loss (after tax) for the year ended December 31, 2023, was approximately HKD 33.4 million, which included a non-current asset impairment loss of HKD 9.2 million, compared to a loss of approximately HKD 47.9 million for the year ended December 31, 2022, which included a non-current asset impairment loss of approximately HKD 21.3 million[9]. - The gross profit rose from approximately HKD 106.4 million to about HKD 127.1 million, representing a growth of approximately 19.5%[20]. - Revenue from furniture sales decreased by approximately 11.7% to about HKD 130.9 million, primarily due to declines in retail and franchise sales in Hong Kong and Dubai[27]. - Furniture rental revenue increased by approximately 22.8% to about HKD 25.3 million, driven by new leasing contracts with several embassies in the UAE[30]. - Project engineering revenue surged over twofold to approximately HKD 94.4 million, significantly boosted by multiple completed projects in Hong Kong[31]. - The overall gross margin decreased from approximately 52.2% to about 50.7%, mainly due to the increased proportion of project engineering revenue, which has a lower profit margin[32]. - Other income, gains, and losses decreased by approximately 72.4% from about HKD 9.8 million to approximately HKD 2.7 million due to increased fair value losses on financial assets and reductions in various subsidies and rent concessions[34]. - Sales and distribution costs increased by approximately 7.4% from about HKD 47.4 million to approximately HKD 50.9 million, primarily due to increased commission expenses related to project engineering business volume[35]. - Management and other operating expenses rose by approximately 6.9% from about HKD 87.1 million to approximately HKD 93.1 million, mainly due to increased director remuneration[36]. - The company recorded a loss of approximately HKD 35.9 million for the year, an improvement from a loss of about HKD 47.9 million in the previous year[40]. Sustainability and Innovation - The company has committed to sustainability measures, integrating responsible sourcing and energy-saving practices throughout its operations[14]. - The company will further enhance its environmental practices and explore renewable energy alternatives as part of its sustainability commitment[15]. - The company aims to invest in innovative solutions utilizing technology, including artificial intelligence and virtual reality, to enhance the shopping experience[15]. Market Strategy and Expansion - The company intends to expand into new markets and selectively grow its physical presence while strengthening its online capabilities[15]. - The company plans to shift its focus in Hong Kong and the UAE towards project engineering and furniture rental businesses due to challenging retail conditions[20]. - The company aims to explore organic growth opportunities and potential acquisitions to further expand its business in the UAE and Hong Kong[22]. - The Hong Kong government announced the cancellation of demand management measures for residential properties starting February 28, 2024, which is expected to increase demand for home decoration and renovation services[22]. Capital and Financing - The company completed three share placements in 2023, raising net proceeds of HKD 13.4 million, HKD 17.6 million, and HKD 1.7 million respectively[20]. - The company raised approximately HKD 13.39 million from the January 2023 placement, with a net price of HKD 0.051 per share[56]. - The June 2023 placement raised approximately HKD 17.59 million, with a net price of HKD 0.076 per share[57]. - The August 2023 placement raised approximately HKD 1.67 million, with a net price of HKD 0.194 per share[58]. - The company has revised the allocation of the unused proceeds, with specific amounts designated for retail network expansion in mainland China and the UAE totaling HKD 28.38 million[55]. - The company plans to enhance its online store and IT capabilities with an allocation of HKD 3.89 million[55]. - The company has no significant capital commitments or contingent liabilities as of December 31, 2023[50][52]. Governance and Compliance - The company appointed Zhongzhixin (Hong Kong) CPA Limited as the new auditor effective March 18, 2024, following the resignation of Dahua Ma Shiyun CPA Limited[82]. - The company has established a governance framework to assess and manage risks effectively[162]. - The board has confirmed compliance with the GEM listing rules regarding the independence of non-executive directors[159]. - The company is committed to high standards of corporate governance and compliance with regulatory requirements[195]. - The company has not established an internal audit function this year, relying instead on an external risk consulting firm to review internal control systems[193]. Employee and Management - As of December 31, 2023, the total employee cost was approximately HKD 72.8 million, an increase from HKD 62.2 million in the previous year[65]. - The group has a total of 156 employees as of December 31, 2023, a slight decrease from 159 employees in the previous year[65]. - Approximately 45% of the company's employees, including senior management, are women, reflecting the company's commitment to gender diversity[175]. - The board consists of 5 executive directors, 1 non-executive director, and 5 independent non-executive directors, ensuring a balanced governance structure[177]. Shareholder Information - The company has at least 25% of its issued shares held by the public, meeting the GEM listing rules requirement[148]. - The largest customer accounts for 20% of total sales, while the top five customers together account for 43% of total sales[146]. - The largest supplier accounts for 16% of total cost of sales, and the top five suppliers together account for 44% of total cost of sales[146]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting[200].
PACIFIC LEGEND(08547) - 2023 - 年度财报