Financial Performance - Total revenue for the year 2023 was HKD 1,986,000, a decrease of 36.3% compared to HKD 2,707,000 in the previous year[14]. - For the fiscal year ending December 31, 2023, the company's revenue was approximately HKD 250.6 million, an increase of about HKD 46.6 million or 22.8% compared to approximately HKD 204.0 million for the fiscal year ending December 31, 2022[30]. - The company's loss attributable to owners for the fiscal year was approximately HKD 33.4 million, compared to a loss of approximately HKD 46.4 million in the previous year[41]. - The gross profit for the fiscal year increased to approximately HKD 127.1 million, representing a growth of about 19.5% from approximately HKD 106.4 million in the previous year[41]. - Revenue from furniture sales decreased by approximately HKD 17.3 million or 11.7% to about HKD 130.9 million, primarily due to declines in retail and franchise sales in Hong Kong and Dubai[48]. - Furniture rental revenue increased by approximately HKD 4.7 million or 22.8% to about HKD 25.3 million, mainly from new leasing contracts with several embassies in the UAE[51]. - Project engineering revenue surged over twofold to approximately HKD 94.4 million from about HKD 35.2 million, driven by the completion of multiple projects in Hong Kong[52]. - The group's gross profit rose by approximately HKD 20.7 million or 19.5% to about HKD 127.1 million, with an overall gross margin of approximately 50.7%, down from about 52.2% the previous year[53]. - The group recorded a loss of approximately HKD 35.9 million for the year, down from HKD 47.9 million in the previous year[61]. Audit and Compliance - The audited annual performance for the year ending December 31, 2023, has been reviewed by the board of directors and the audit committee[3]. - The audit procedures have addressed unresolved matters related to debtors, creditors, and bank confirmations, ensuring the accuracy of financial data[5]. - The company has engaged independent valuers to assess its assets, ensuring compliance with relevant accounting standards[11]. - The financial report indicates adjustments related to the fair value of financial assets and liabilities, impacting overall financial performance[17]. - The board does not recommend the distribution of a final dividend for the fiscal year ending December 31, 2023[30]. - The company appointed a new auditor, Zhongzhixin (Hong Kong) CPA Limited, following the resignation of its previous auditor[103]. - The Audit Committee reviewed the consolidated financial statements for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and GEM listing rules[200]. Strategic Focus and Future Plans - The company is focusing on strategic adjustments in management expenses and revenue recognition to enhance financial stability[17]. - Future strategies include a customer-centric approach, investment in innovative solutions, and expansion into new markets while enhancing online capabilities[36]. - The company aims to leverage technology such as AI, virtual reality, and augmented reality to enhance the shopping experience[36]. - The company strategically shifted its focus in Hong Kong and the UAE from retail to project engineering and furniture leasing due to market challenges[40]. - The group plans to manage cash flow prudently and may consider not renewing existing retail leases while exploring new locations[43]. - The group anticipates increased demand for residential properties in Hong Kong following the government's announcement to lift demand management measures starting February 28, 2024[43]. Operational Adjustments - Management and other operating expenses increased to HKD 96,089,000 from HKD 93,090,000, reflecting a rise of 3.2%[14]. - The provision for expected credit losses decreased significantly to HKD 3,453,000 from HKD 9,652,000, a reduction of 64.2%[14]. - The impairment loss for the year was HKD 9.2 million, a decrease from HKD 21.3 million in the previous year[58]. - Trade receivables increased to HKD 38.1 million from HKD 16.4 million year-on-year, attributed to new trade receivables from confirmed sales in Dubai projects[62]. - The company's cash and cash equivalents increased to approximately HKD 23.3 million from HKD 17.8 million year-on-year[65]. - The debt-to-equity ratio increased to approximately 30.1% from 19.2% due to increased bank loans for UAE projects[66]. Shareholder and Capital Management - 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[41]. - The company raised approximately HKD 13.39 million from the placement of 264,000,000 new shares at a net price of HKD 0.051 per share in January 2023[77]. - In June 2023, the company raised approximately HKD 17.59 million from the placement of 230,700,000 new shares at a net price of HKD 0.076 per share[78]. - The August 2023 placement raised approximately HKD 1.67 million from the placement of 8,610,000 new shares at a net price of HKD 0.194 per share[79]. - The company has not utilized approximately HKD 23.6 million of the net proceeds from its listing as of December 31, 2023[74]. Governance and Compliance - The company has established a governance framework to assess and manage risks effectively[183]. - The board consists of experienced members, with an average service time of 4 years among executive directors and senior management[182]. - The company has complied with all corporate governance code provisions during the reporting period[176]. - The independent non-executive directors must constitute at least one-third of the board, with at least one possessing relevant professional qualifications[193]. - The company has received annual confirmations from all directors stating that they have not engaged in any competitive activities with the group, ensuring no conflicts of interest exist[147]. - The company has established a framework to protect its interests in the UAE, ensuring compliance with local regulations while maintaining operational control[153]. Environmental and Social Responsibility - The company is committed to sustainability and has implemented measures to reduce its environmental footprint, including responsible sourcing and energy-saving practices[35]. - The environmental policy and compliance with relevant laws and regulations are discussed, highlighting the company's commitment to stakeholders[119]. - The company emphasizes the importance of diversity in its workforce, attracting and retaining talent from a broad talent pool[197]. - The company has achieved a gender diversity ratio of approximately 45% female and 55% male employees as of December 31, 2023[196].
PACIFIC LEGEND(08547) - 2023 - 年度业绩