Financial Performance - The company's consolidated revenue for the fiscal year ended December 31, 2024, decreased by 36.1% to approximately HKD 456.86 million from HKD 714.49 million in 2023[20]. - The gross profit fell by 50.6% to HKD 152.37 million, resulting in a gross margin of 33.4%, down from 43.2% in the previous year[13]. - The loss attributable to the company's owners increased by 191.0% to HKD 298.57 million compared to a loss of HKD 102.60 million in 2023[20]. - Basic loss per share was HKD 39.5 cents, a 190.4% increase from HKD 13.6 cents in the prior year[13]. - The mid-term dividend paid was HKD 1.5 cents, a decrease of 70% from HKD 5.0 cents in the previous year[13]. - The company recorded a consolidated revenue of approximately HKD 456,859,000 for the year 2024, a decrease of about HKD 257,627,000 or 36.1% compared to HKD 714,486,000 in 2023[24]. - The loss attributable to the company's owners was approximately HKD 298,573,000, an increase of 191.0% from last year's loss of HKD 102,604,000, primarily due to the decline in revenue[24]. - Gross profit decreased by approximately 50.6% to about HKD 152,366,000 due to reduced sales[28]. - Distribution and selling costs decreased by approximately 6.7% to about HKD 181,074,000, mainly due to a reduction in royalty fees[29]. - Administrative expenses increased by 2.5% to HKD 160,096,000, which includes salaries, rent, and depreciation[30]. - Financial expenses increased by approximately 17.7% to about HKD 4,473,000 due to higher interest on bank loans and lease liabilities[31]. - As of December 31, 2024, the total assets of the group were approximately HKD 694,161,000, a decrease of about 32.6% from HKD 1,031,356,000 in 2023[40]. - The capital debt ratio rose to 16.3%, up from 5.8% in 2023, indicating a significant increase in leverage[13]. Strategic Focus and Operations - The company plans to focus on improving operational efficiency and optimizing organizational structure to maintain market position amid economic uncertainties[21]. - The company aims to enhance product innovation and marketing strategies to adapt to rapidly changing market conditions[21]. - The company has strategically expanded its development in Vietnam's real estate market through land acquisition in Da Nang[47]. - The group plans to engage in property development in Vietnam in 2024, considering various local conditions and strategic priorities[48]. - The company will continue to enhance automation in manufacturing to improve efficiency and maximize long-term returns for shareholders[54]. - The group is implementing flexible strategies to expand its product range and strengthen its customer base amid global economic uncertainties[53]. - The company has reduced capital investments in related development projects due to delays in land acquisition and a decline in core manufacturing operations[56]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) matters for sustainable development, integrating these principles into its mission[21]. - The group is focused on environmental responsibility by implementing green office measures and considering further eco-friendly practices in its operations[50]. - The company aims to minimize its environmental impact through resource management and efficiency measures[121]. - The total greenhouse gas emissions for the business in 2024 amounted to 12,160.93 tons of CO2 equivalent, a decrease from 12,421.81 tons in 2023[127]. - The annual emission density in 2024 was 0.0991 tons of CO2 equivalent per square meter, down from 0.1012 tons in 2023[130]. - The company implemented energy efficiency measures that resulted in a reduction of 17.760 tons of CO2 equivalent emissions in 2024, compared to 39.970 tons in 2023[131]. - The group has obtained certifications for social compliance standards, promoting safety and fair labor practices[121]. - The group has implemented various environmental protection measures to minimize greenhouse gas emissions, although climate change risks currently do not significantly impact business operations[140]. - The group actively promotes water-saving measures, including the installation of water meters and automatic valves to prevent wastage[138]. - The group has not reported any significant environmental incidents during the reporting period, indicating effective management of potential pollution risks[139]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, ensuring at least one-third of the board is independent[67]. - The company has adopted a corporate governance code in compliance with the Hong Kong Stock Exchange listing rules, reflecting its commitment to best practices[65]. - The independent non-executive directors have confirmed their independence according to the relevant listing rules, ensuring effective independent judgment[68]. - The company has a strong focus on risk management, identifying key risks and implementing appropriate measures and monitoring systems[66]. - The board is responsible for strategic development decisions and monitoring the management of the group's business and affairs[66]. - The company has established various committees, including audit, remuneration, and nomination committees, to assist the board in fulfilling its responsibilities[66]. - The independent non-executive directors possess appropriate professional qualifications and expertise in accounting and financial management[67]. - The company has a policy for directors to retire and seek re-election at least once every three years, promoting accountability[68]. - The board is committed to continuous review and enhancement of governance policies to align with regulatory changes and best practices[65]. - The company has a diverse board with members having extensive experience in finance, asset management, and corporate governance[69]. - The company held 32 board meetings during the year, with all directors receiving sufficient information to make informed decisions[71]. - The remuneration policy for executive directors and senior management is linked to performance, service tenure, and experience, with regular reviews based on market practices[76]. - The Nomination Committee is responsible for reviewing the board's structure and composition annually to ensure diversity in age, expertise, skills, experience, independence, knowledge, and gender[79]. - All directors participated in continuous professional development to stay updated on their responsibilities and the latest developments in laws and regulations applicable to the company[73]. - The company has adopted a code governing securities trading by directors, ensuring compliance with the required standards[72]. - The Remuneration Committee's primary role is to review the remuneration policies and structures for directors and senior management, ensuring the ability to attract and retain a high-quality team[74]. - The company’s chairman and CEO roles are held by different individuals, ensuring effective governance and operational management[70]. - The Nomination Committee evaluates the independence of independent non-executive directors and makes recommendations for appointments and reappointments[78]. - All members of the Remuneration Committee attended all meetings during the year, ensuring active participation in decision-making[75]. - The company provides directors with access to independent professional advice when necessary, with costs covered by the company[71]. - The board consists of six male directors and two female directors, meeting the minimum requirement set by rule 13.92[86]. - The company aims to maintain at least one female director over the next four years to enhance board diversity[86]. - The nomination committee will annually review measurable diversity goals and report progress to the board[85]. - The audit committee is responsible for reviewing the appointment of external auditors and ensuring their independence[89]. - The audit committee members include qualified accountants, ensuring compliance with accounting standards and regulations[90]. - The audit committee has conducted mid-year and year-end financial reviews, ensuring adherence to accounting policies and legal requirements[93]. - The company emphasizes transparency and fairness in the nomination process for board members[84]. - The nomination committee will focus on attracting diverse talent across various backgrounds to foster a more inclusive environment[85]. - The financial statements for the year ending December 31, 2024, have been reviewed by the audit committee and audited by external auditor KPMG (Hong Kong) with no significant uncertainties affecting the company's ability to continue as a going concern[94]. - The company paid approximately HKD 1,800,000 for statutory audit services provided by KPMG (Hong Kong) and around HKD 1,821,000 for audit and non-audit services to overseas subsidiaries[105]. - The internal audit function has been established since 2015, focusing on risk management and internal controls, with a dedicated internal audit team consisting of two members[102]. - The audit committee has conducted a review of the effectiveness of the internal control system, finding it to be effective and sufficient without any significant concerns affecting the company's financial status or operational performance[104]. - The company has implemented appropriate monitoring procedures to safeguard assets and ensure compliance with relevant regulations and accounting standards[100]. - The audit committee received reports on the performance of the internal audit function and identified key risks, ensuring that appropriate follow-up actions were taken[99]. - The board is responsible for maintaining proper accounting records and ensuring timely preparation of financial statements[96]. - The company actively enhances transparency and communication with shareholders and potential investors through mandatory interim and annual reports[109]. - The audit committee has established a whistleblowing policy to allow employees and stakeholders to report any misconduct, ensuring prompt and transparent investigations[103]. - The company has adopted various policies to assess and improve the effectiveness of its internal control and risk management functions[104]. - The company conducted a review of its shareholder communication policy, ensuring effective implementation during the review year[110]. - The annual general meeting provided a platform for shareholders to engage with the board, with all directors present except for two[112]. - The company expects to consider multiple factors when declaring dividends, including financial performance and capital needs[117]. Employee Relations and Workforce - The company operates four factories in Vietnam and employs approximately 2,200 staff across various regions including Hong Kong, China, and the US[7]. - As of December 31, 2024, the group has approximately 2,200 employees, a decrease from 2,310 in 2023, and offers competitive compensation aligned with market trends[49]. - The total number of employees as of December 31, 2024, was approximately 2,200, with 2,081 being factory employees, all of whom are full-time[141]. - The annual turnover rate for employees aged 18-25 was 21.2%, slightly up from 21.12% in the previous year, while the turnover rate for those aged 46-55 decreased from 21.19% to 12.50%[143]. - The total training hours for factory employees increased to 8 hours per employee in 2024, compared to 4 hours per employee in 2023[150]. - The number of work-related injuries resulting in lost workdays was 1 in 2024, down from 2 in 2023, with a total of 23 lost workdays compared to 45 in the previous year[147]. - The group has implemented strict measures to prevent child and forced labor in compliance with labor laws[154]. - The group maintains good relationships with suppliers to ensure stable services and product quality[155]. - There were no significant complaints regarding product quality and delivery during the reporting period[157]. - The group has approximately 500 suppliers across Hong Kong, China, and Vietnam[154]. Innovation and Product Development - The group is committed to providing innovative and quality products, investing significant resources in new equipment to enhance competitiveness[159]. - The group will continue to purchase energy-efficient appliances and materials, and review supplier sources[164]. - The group encourages reporting of any misconduct or fraud, ensuring confidentiality for whistleblowers[162]. - The top five customers accounted for approximately 59.0% of the group's revenue, with the largest customer representing about 32.8%[170]. - The total cash dividends paid during the year amounted to approximately HKD 34,029,000, with a proposed final dividend of HKD 0.01 per share, totaling around HKD 7,562,000[171]. - The company's distributable reserves as of December 31, 2024, were approximately HKD 186,137,000, a decrease from HKD 400,779,000 in 2023[175]. - The total remuneration for the eight directors amounted to HKD 10,812,000, with the highest individual remuneration being HKD 4,035,000[183]. - As of December 31, 2024, the company had issued shares totaling 538,573,569, with the largest shareholder holding 71.22% of the issued share capital[191]. - The company did not purchase, redeem, or sell any of its listed shares during the year[174]. - The board of directors has the discretion to recommend dividends based on various factors, including corporate governance considerations[172]. - There were no warrants or stock-linked agreements issued during the year[176]. - The company has no provisions regarding preemptive rights in its articles of association[177]. - The company has not entered into any management contracts related to its overall business during the year[178]. - Smart Forest holds 71.22% of the company's issued ordinary shares, totaling 538,573,569 shares[193]. - The company has received revised financing letters from banks for a total amount not exceeding HKD 70,000,000, effective from September 18, 2020[197]. - The company confirms that at least 25% of its issued shares are held by the public prior to the publication of the annual report[196]. - The company has established a remuneration committee to review the remuneration policy based on group performance and market statistics[194]. - The company appointed KPMG as the new auditor on October 24, 2024, following the resignation of another firm[199]. - The company has not changed its external auditor in the past three years, with KPMG auditing the financial statements for the fiscal year 2024[199]. - The company has disclosed that its controlling shareholder must maintain at least 51% ownership to avoid default on revised financing terms[197]. - The board has adopted corporate governance codes and has complied with them, except for a specific disclosure regarding independent non-executive directors' tenure[195]. - The company has not made any arrangements for its directors or their associates to benefit from the purchase of shares or debentures[192]. - The company has confirmed that there are no other known interests or short positions in its issued share capital as of December 31, 2024[193].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of HKD 456,859,000, a decrease of 36% compared to HKD 714,486,000 in 2023[3] - The gross profit for the same period was HKD 152,366,000, down 50.7% from HKD 308,680,000 in the previous year[3] - The operating loss increased to HKD 271,477,000 from HKD 94,827,000, reflecting a significant decline in operational performance[3] - The net loss for the year was HKD 298,731,000, compared to a net loss of HKD 102,940,000 in 2023, indicating a worsening financial situation[4] - The company reported a basic and diluted loss per share of HKD 39.5, compared to HKD 13.6 in the previous year, indicating increased losses per share[4] - The loss attributable to shareholders for 2024 was approximately HKD 298,573,000, an increase of 191.0% from a loss of HKD 102,604,000 in 2023[19] - Gross profit decreased by approximately 50.6% to about HKD 152,366,000 due to reduced sales[25] - The group reported a loss of HKD 298,731,000 for the year ending December 31, 2024, with bank deposits and cash decreasing from HKD 181,202,000 to HKD 57,733,000[9] Assets and Liabilities - Total assets decreased to HKD 558,067,000 from HKD 883,592,000, showing a reduction in the company's asset base[6] - The company's cash and bank balances fell to HKD 56,834,000 from HKD 181,202,000, highlighting liquidity challenges[5] - Non-current liabilities, specifically lease liabilities, increased to HKD 61,746,000 from HKD 30,620,000, indicating rising financial obligations[6] - The company's equity attributable to owners decreased to HKD 507,013,000 from HKD 863,734,000, reflecting a significant drop in shareholder value[6] - Trade receivables and notes receivable decreased by approximately 31.7% to about HKD 77,591,000, mainly due to reduced sales[29] - Trade payables decreased by approximately 10.9% to about HKD 27,007,000, primarily due to reduced raw material purchases[30] - Total assets as of December 31, 2024, approximately HKD 694,161,000, down from HKD 1,031,356,000 in 2023, with total liabilities at HKD 199,599,000[38] Cash Flow and Financial Support - The group received financial support of HKD 20,000,000 from the ultimate controlling party to ensure operational continuity for the next 15 months[9] - The group’s interest income from bank deposits decreased to HKD 1,106,000 in 2024 from HKD 3,348,000 in 2023[16] - The group’s total other income for the year ending December 31, 2024, was HKD 11,319,000, down from HKD 26,652,000 in the previous year[16] - Cash flow significantly decreased, but bank borrowings maintained at a minimum level[33] - As of December 31, 2024, bank cash and deposits balance approximately HKD 57,733,000, down from HKD 181,202,000 in 2023[34] Operational Changes and Strategies - The company is primarily engaged in the manufacturing and trading of toys and lighting products, as well as property development, which may impact future growth strategies[7] - The group has reclassified its operational segments to focus on manufacturing toys and lighting products as a single reportable segment[14] - The company plans to distribute a final dividend of HKD 0.01 per share for the year ending December 31, 2024[18] - The company plans to pay an interim dividend of HKD 1.5 per share for the year ending December 31, 2024, down from HKD 2.0 in 2023[53] - The total dividend for the year will amount to HKD 2.5 per share, compared to HKD 5.0 in 2023[53] - The company will continue to invest in automation to enhance efficiency and maximize long-term returns for shareholders[51] - The company aims to expand its product range and strengthen its customer base in response to global economic uncertainties[51] - The company is focusing on real estate investments in Vietnam to capitalize on growth opportunities in Southeast Asia[52] Governance and Compliance - The group did not apply any new accounting standards or interpretations that have not yet come into effect during the year[12] - The group has implemented new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on financial performance[11] - The independent auditor's report indicated that the financial statements reflect the group's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[63] - The prior auditor's opinion was modified due to concerns regarding the commercial substance of the horse management service income[67] - The board believes that the agreement constitutes financial assistance from a related party and has favorable commercial terms, qualifying as a fully exempt related transaction under listing rules[68] - The board has adopted a corporate governance code based on the principles outlined in the Hong Kong Stock Exchange Listing Rules[56] Employee and Market Conditions - Employee count decreased to approximately 2,200 from 2,310 in 2023, with competitive compensation policies in place[46] - The U.S. toy industry is expected to experience stagnant growth by 2025 due to economic and consumer behavior factors[50] - Sales of proprietary brands and original design manufacturing brands decreased due to cautious inventory management by customers[42] - New licensed products and proprietary brands launched to expand supply and maintain customer loyalty[43] - The company will implement flexible strategies to adapt to challenges and opportunities in the market[51] Miscellaneous - The company will hold its annual general meeting on May 15, 2025, at 2:30 PM[59] - Share transfer registration will be suspended from May 9 to May 15, 2025, to determine the rights of shareholders attending the annual general meeting[60] - The company confirmed that all documents related to share registration must be submitted by May 8, 2025, at 4:30 PM[60] - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2024[61] - The independent auditor's report was prepared by KPMG (Hong Kong) for the year ended December 31, 2024[62] - As of September 2024, the company has reduced capital investments in related development projects due to delays in land acquisition and a decline in core manufacturing operations[69] - The company has temporarily suspended horse racing operations, which has helped alleviate related concerns[69] - Audit adjustments related to the previous year have been resolved as of December 31, 2024, except for factors that may affect comparable data for 2024[69] - The company's annual report and shareholder meeting notice will be sent to shareholders and published on the exchange website at the appropriate time[70] - The board of directors currently includes executive directors Zheng Rongbin, Zheng Jingzhang, Ye Xiaoxia, and Shirley Marie Price, as well as independent non-executive directors Mai Zhaozhong, Xing Jiawei, and Cui Jiaxing[71]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，且明確表示，概不對因本公佈全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 司計劃在開發項目中建造一個賽馬中心，同時配備大型景觀花園和其他設施。 MATRIX HOLDINGS LIMITED 美力時集團有限公司* (於百慕達註冊成立之有限公司) (股份代號 : 1005) 有關二零二三年年報的補充公告 茲提述本公司於二零二四年七月十七日發放的二零二三年年報（「二零二三年年報」）。除 非文義另有所指，本文所用詞彙與二零二三年年報所界定者俱有相同涵義。 本公司謹此向其股東及潛在投資者提供二零二三年年報第 13 至 14 頁 「審計保留意見的說 明」一節中提及的審計保留意見的補充資料，具體如下: 公司對審計保留意見的看法和立場 核數師要求的資訊和解釋包括能夠使其滿意的文件，涉及但不限於接受獎金是否為賽馬行業 的一般做法、業務理由以及在簽訂協議前馬匹管理服務安排是否得到適當授權，以及相關支 持證據。 審計保留意見是由於核數師與公司管理層在解釋關連人士向集團子公司提供馬匹借貸安排 方面 ...

. . . . ' . 。 | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|------------------|-------| | | | | | | MOT | | | | | Matrix Holdings Limited 美 力 時 集 團 有 限 公 司 (於百慕達註冊成立之有限公司) . "股份代號：1005 . . 。 · . 。 。 . · • . . . . . . . 。 · . . · . ● . . · . 。 | | 2024 中 期 報 告 | | | | | | | . . • 宗旨 • 提供符合世界安全標準之優質產品， 提高客戶滿意度 • 為員工提供安全及舒適之工作環境， 成為有社會責任感之僱主 • 循環再造及遵守國際環保 ...

Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of HKD 194,250,000, a decrease of 41.8% compared to HKD 332,795,000 for the same period in 2023[1] - Gross profit for the same period was HKD 74,925,000, down 51.2% from HKD 153,867,000 year-on-year[1] - The company recorded a net loss attributable to owners of HKD 84,008,000, compared to a profit of HKD 414,000 in the previous year[2] - Total comprehensive loss for the period was HKD 95,644,000, compared to a comprehensive income of HKD 3,291,000 in the same period last year[2] - The operating loss for the group was HKD 27,821,000, with a pre-tax loss of HKD 84,423,000 for the reporting period[11] - The company reported a basic and diluted loss per share of HKD 11.11 for the period, compared to earnings of HKD 0.05 per share in the previous year[2] - The group reported a total revenue of HKD 194,250,000 for the six months ended June 30, 2024, compared to HKD 332,795,000 for the same period in 2023, representing a decline of approximately 41.7%[13] - The company's net asset value decreased by 13.9% to approximately HKD 732,900,000 as of June 30, 2024[38] Assets and Liabilities - The company's total assets decreased to HKD 928,641,000 as of June 30, 2024, down from HKD 1,031,356,000 at the end of 2023[3] - Current liabilities amounted to HKD 140,886,000, a decrease from HKD 147,764,000 at the end of 2023[3] - The company's cash and cash equivalents decreased significantly to HKD 84,493,000 from HKD 181,202,000 at the end of 2023[3] - Non-current assets increased slightly to HKD 531,082,000 from HKD 520,293,000 at the end of 2023[3] - The company’s equity attributable to owners decreased to HKD 745,915,000 from HKD 863,734,000 at the end of 2023[4] - Trade receivables, net of provisions, were HKD 73,732,000 as of June 30, 2024, down from HKD 113,521,000 as of December 31, 2023[21] Revenue Breakdown - Revenue from toys amounted to HKD 186,193,000, while lighting products generated HKD 8,057,000 in the first half of 2024[13] - The group’s geographical revenue breakdown showed significant contributions from the US (HKD 224,096,000) and Europe (HKD 43,664,000) for the first half of 2024[11] - In the first half of 2024, the group's revenue from the US market decreased by HKD 101,744,000 or 45.4% to HKD 122,352,000 compared to the same period last year[43] - Revenue from the European market fell by HKD 11,645,000 or 26.7% to HKD 32,019,000 in the first half of 2024 compared to the previous year[44] - The Canadian market's revenue decreased by HKD 11,663,000 or 36.2% to HKD 20,572,000 in the first half of 2024 compared to the same period last year[46] - Revenue from the Mexican market declined by HKD 1,125,000 or 25.5% to HKD 3,292,000 in the first half of 2024 compared to the previous year[47] - The Australian and New Zealand markets saw a revenue drop of HKD 3,901,000 or 25.0% to HKD 11,684,000 in the first half of 2024 compared to the same period last year[48] - The group’s total revenue from other regions was HKD 6,964,000, contributing to the overall revenue[11] Expenses and Costs - Distribution and selling costs increased by approximately 4.2% to about HKD 76,933,000, primarily due to higher advertising expenses[28] - Administrative expenses rose by approximately 4.8% to around HKD 79,226,000, mainly due to increased salaries and related costs[29] - Research and development expenses decreased by about 8.8% to approximately HKD 10,586,000 due to reduced resources allocated to toy product development[31] - The group’s financial expenses for the period were HKD 2,126,000, reflecting the cost of financing operations[11] - Depreciation expenses for the reporting period were HKD 30,152,000, indicating ongoing investment in fixed assets[11] Strategic Initiatives - The company is optimizing production technology and capacity while managing operational costs prudently in response to global economic challenges[25] - The group continues to maintain strong business relationships with major clients, including Walmart and Amazon, despite the revenue declines[43][46] - The group has launched new products under the "TEENAGE MUTANT NINJA TURTLES" and "CAT" brands, aiming to diversify its product offerings[42] - The group is focusing on cost control and enhancing customer relationships to improve competitiveness and reduce operational risks[40] - The group is leveraging automation and skill enhancement in its manufacturing facilities in Vietnam to improve production efficiency[41] - The company plans to invest in real estate in Vietnam to capitalize on growth opportunities in Southeast Asia[55] - The company aims to enhance its product portfolio by developing sustainable and technology-driven products[54] Compliance and Governance - The company emphasizes maintaining healthy relationships with stakeholders and fulfilling social responsibilities[51] - The company is committed to adhering to applicable laws and regulations, ensuring compliance through internal monitoring[52] - The company has adopted a set of conduct rules for directors regarding securities trading, ensuring compliance with the standards outlined in the Listing Rules Appendix C3[61] - The Audit Committee has reviewed the unaudited interim results for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and legal requirements[63] - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website, with the interim report to be sent to shareholders at the appropriate time[64] Employee and Operational Metrics - Employee count as of June 30, 2024, is approximately 2,300, a slight decrease from 2,310 on December 31, 2023[56] - The company incurred a tax expense of HKD 96,000 for the six months ended June 30, 2024, compared to HKD 20,000 in the same period last year[16] - Capital expenditures for the period amounted to approximately HKD 21,514,000, aimed at expanding and enhancing production capacity[37] - The company declared an interim dividend of HKD 1.5 cents per share, down from HKD 2.0 cents per share in the previous year[18] - The mid-term dividend declared is HKD 0.015 per share, down from HKD 0.020 per share in the previous year[57]

Financial Performance - The company's consolidated revenue for the fiscal year ended December 31, 2023, was approximately HKD 714,486,000, a decrease of about 27.5% from HKD 986,094,000 in 2022[11]. - The company reported a loss attributable to shareholders of approximately HKD 102,604,000, a decline of 1,747.5% compared to a profit of HKD 6,228,000 in the previous year[11]. - Gross profit decreased by approximately 24.1% to about HKD 308,680,000 due to reduced sales[29]. - The operating cash flow for the year was approximately HKD 32,219,000, significantly lower than HKD 229,171,000 in the previous year[42]. - The company's total assets decreased by approximately 17.8% to about HKD 851,230,000, while total liabilities decreased to about HKD 180,126,000[45]. - The company maintained a cash balance of approximately HKD 181,202,000, down from HKD 258,959,000 the previous year[40]. Dividends - The mid-term dividend paid was HKD 0.05 per share, an increase of 25% from HKD 0.04 per share in the previous year[11]. - The proposed final dividend for 2023 is zero, a decrease of 100% from HKD 0.08 per share in 2022[11]. - The company announced an interim dividend of HKD 0.03 per share, compared to no dividend in the previous year[27]. - The company’s dividend policy considers various factors including financial performance, shareholder interests, and capital requirements[154]. Liquidity and Financial Ratios - The company maintained a current ratio of 3.5 and a quick ratio of 2.2, indicating stable liquidity positions[11]. - The capital debt ratio improved slightly to 0.5% from 0.6% in the previous year, indicating a reduction in leverage[11]. Market Challenges - The company faced significant challenges due to global economic conditions, including high inflation and cautious inventory management by customers[23]. - The company continues to face challenges in the North American and European markets due to high inflation and geopolitical uncertainties[49]. Revenue by Region - Revenue from Canada decreased by approximately HKD 17,773,000 or 21.1% to about HKD 66,298,000 this year[54]. - Revenue from Europe increased by approximately HKD 6,587,000 or 8.1% to about HKD 88,384,000 this year[56]. - Revenue from Mexico decreased by approximately HKD 2,404,000 or 17.5% to about HKD 11,349,000 this year[59]. - Revenue from Australia and New Zealand decreased by approximately HKD 921,000 or 2.3% to about HKD 38,932,000 this year[60]. - Revenue from South America increased by approximately HKD 812,000 or 6.4% to about HKD 13,414,000 this year[61]. Environmental, Social, and Governance (ESG) Initiatives - The company plans to continue focusing on environmental, social, and governance (ESG) initiatives as part of its sustainable development strategy[24]. - The total greenhouse gas emissions for the group in 2023 were 12,421.81 tons of CO2 equivalent, a decrease of 30.2% from 17,800.27 tons in 2022[167]. - The main source of emissions was indirect emissions from purchased electricity, accounting for 99.74% of total emissions in 2023, compared to 99.82% in 2022[171]. - The group’s energy consumption was 18,829,903 kWh in 2023, down from 27,003,081 kWh in 2022, reflecting a commitment to energy efficiency[180]. - The group implemented measures that eliminated 39.970 tons of CO2 equivalent emissions in 2023 through energy-saving initiatives, compared to 60.549 tons in 2022[172]. - The group has implemented water-saving measures, including the installation of water meters and employee training on water conservation[182]. Corporate Governance - The company has adopted a corporate governance code in compliance with the Hong Kong Stock Exchange's listing rules, ensuring adherence to best practices[93]. - The board consists of three executive directors and four independent non-executive directors, meeting the requirement of at least one-third independent members[94]. - The independent non-executive directors have confirmed their independence according to the applicable listing rules, maintaining their ability to make independent judgments[96]. - The board believes it has the necessary skills and experience to act in the best interests of the company[97]. - The roles of the Chairman and CEO are separated, with Mr. Zheng Rongbin as Chairman and Ms. Ye Xiaoxia as CEO, ensuring effective governance and operational management[99]. Internal Controls and Audit - The board is committed to addressing the auditor's concerns regarding the qualified opinion by hiring external experts and enhancing internal controls[77]. - The Audit Committee has conducted regular meetings to review the effectiveness of the internal control systems, including financial, operational, and compliance monitoring, as well as risk management functions[134]. - The internal audit function has been established since 2015, focusing on risk management and internal control systems, with a dedicated internal audit team[138]. - The external auditor's independence and objectivity have been reviewed, ensuring compliance with relevant accounting standards and regulations[129]. Workforce and Employment - As of December 31, 2023, the group employed approximately 2,310 full-time employees, all factory workers, compared to 3,275 in 2022[185]. - The annual employee turnover rate improved, with rates of 21.12% for ages 18-25, 29.27% for ages 26-35, and 28.15% for ages 36-45 in 2023, down from 32.50%, 35.78%, and 20.11% respectively in 2022[187]. - The group provided a total of 4 hours of training per factory employee in both 2023 and 2022, with a total of 2,310 factory employees trained in 2023[195]. Future Outlook - The global economic outlook for 2024 is cautiously optimistic, with signs of recovery from challenges posed by the pandemic, high inflation, and high interest rates[67]. - The company plans to invest in property in Vietnam to capitalize on the growth in the Southeast Asian market[70]. - The company aims to enhance automation to improve efficiency and maximize long-term returns for shareholders[71].

Financial Performance - The company reported a revenue of HKD 714,486,000 for the year ended December 31, 2023, a decrease of 27.5% from HKD 986,094,000 in 2022[31]. - Gross profit for the year was HKD 308,680,000, down from HKD 406,635,000 in the previous year, reflecting a gross margin decline[31]. - The company incurred a net loss of HKD 102,940,000 for the year, compared to a profit of HKD 1,831,000 in 2022, indicating a significant downturn in performance[31]. - Total comprehensive income for the year was reported at HKD (108,915,000), a substantial decrease from HKD (15,783,000) in the prior year[32]. - Basic loss per share was HKD (13.6) compared to earnings of HKD 0.8 per share in the previous year, highlighting a shift to losses[33]. - The group reported a loss before income tax of HKD 98,628,000, with unallocated company expenses amounting to HKD 178,114,000[77]. - The company reported a loss attributable to shareholders of approximately HKD 102,604,000, a decrease of 1,747.5% compared to a profit of HKD 6,228,000 last year[142]. Revenue by Market - Revenue from the US market decreased by approximately HKD 253,324,000 or 34.4% to about HKD 483,592,000 from approximately HKD 736,916,000 last year[6]. - Revenue from the European market increased by approximately HKD 6,587,000 or 8.1% to about HKD 88,384,000 from approximately HKD 81,797,000 last year[9]. - Revenue from the South American market increased by approximately HKD 812,000 or 6.4% to about HKD 13,414,000 from approximately HKD 12,602,000 last year[13]. - The group experienced a decline in sales across various markets, including a 21.1% decrease in Canada, with revenue dropping from approximately HKD 84,071,000 to about HKD 66,298,000[157]. Dividends - The company declared an interim dividend of HKD 2.0 cents per share, down from HKD 4.0 cents last year, and a second interim dividend of HKD 3.0 cents for the current year[19]. - Total dividends for the year amount to HKD 5.0 cents per share, down from HKD 12.0 cents last year[19]. - The company declared an interim dividend of HKD 0.03 per share for the year ending December 31, 2023[91]. Assets and Liabilities - The company's total equity decreased to HKD 851,230,000 from HKD 1,035,765,000, reflecting a decline in shareholder value[35]. - The total assets of the group amounted to 1,263,221 thousand HKD, while total liabilities were 227,456 thousand HKD, resulting in a net asset value of 1,035,765 thousand HKD[65][66]. - Non-current liabilities decreased to HKD 32,362,000 from HKD 46,862,000, indicating a reduction in long-term financial obligations[35]. - The group's total liabilities included bank borrowings of 4,234 thousand HKD, down from 5,945 thousand HKD in the previous year, indicating a reduction in debt[68]. - The group's cash and cash equivalents decreased to 181,202 thousand HKD from 258,959 thousand HKD, reflecting cash flow challenges[68]. - Total assets as of December 31, 2023, were approximately HKD 1,031,356,000, a decrease of about 18.4% from HKD 1,263,221,000 in the previous year[127]. Operational Strategies - The company continues to maintain its major brand licensing business and enrich other product lines while maintaining existing distributors and customers[7]. - The company is enhancing its automation in production to improve capacity and quality, thereby maintaining competitiveness[5]. - The company aims to diversify its product portfolio and strengthen customer diversification while managing its financial and cash position prudently[167]. - The group plans to adopt new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which may impact future financial reporting[72][73]. - The company is committed to maintaining operational efficiency and exploring strategic partnerships to enhance its market position[31]. Future Outlook - The economic outlook for 2024 is cautiously optimistic, with signs of recovery from challenges posed by the pandemic, high inflation, and high interest rates[17]. - Future outlook includes potential market expansion and new product development initiatives to recover from the current losses[31]. - The group plans to diversify its product line by launching new licensed brand products "TEENAGE MUTANT NINJA TURTLES" while continuing cost control and automation efforts[186]. Cost Management - Distribution and selling costs decreased by approximately 0.6% to about HKD 194,134,000, primarily due to reduced employee salaries and transportation expenses[121]. - Administrative expenses decreased by approximately 2.7% to about HKD 149,866,000, attributed to lower depreciation and reduced office staff salaries[122]. - Financial expenses decreased by approximately 12.0% to about HKD 3,801,000 due to lower interest on lease liabilities[123]. Cash Flow Management - The company has a cash flow management strategy in place to address the financial challenges faced during the year[31]. - Net cash generated from operating activities was approximately HKD 32,222,000, significantly lower than HKD 229,171,000 in the previous year[126]. - The group maintained a healthy cash flow, with bank borrowings at a minimum level of approximately HKD 4,234,000 as of December 31, 2023, down from HKD 5,945,000 last year[150]. Market and Product Development - The company has not reported any significant new product launches or technological advancements during the period[74]. - There were no acquisitions or major market expansions mentioned in the conference call[74]. - The company continues to review its operational segments and resource allocation regularly[74]. - Research and development expenses decreased by approximately 1.9% to about HKD 20,237,000 due to fewer resources allocated for toy product development this year[145].

Financial Performance - For the six months ended June 30, 2023, the group's revenue decreased to HKD 332.8 million, down 42.4% from HKD 577.2 million in the same period of 2022[9]. - The net profit for the period was HKD 387, a significant decrease of 99.5% compared to HKD 71.3 million in the previous year[9]. - The company reported a total comprehensive income of HKD 3.3 million for the period, compared to HKD 61.2 million in 2022[9]. - The profit attributable to the owners of the company for the same period was approximately HKD 414,000, a decrease of 99.4% compared to HKD 71,997,000 in the previous year[24]. - The company's revenue for the six months ended June 30, 2023, decreased by 42.3% to approximately HKD 332,795,000 from HKD 577,164,000 in the same period last year[24]. - The total comprehensive income for the period was 61,186 thousand HKD, a decrease from 71,997 thousand HKD in the previous year, showing a decline of approximately 15.5%[50]. - The group's consolidated revenue for the six months ended June 30, 2023, decreased by approximately HKD 244,369,000 or 42.3% to HKD 332,795,000 compared to the same period last year[137]. Revenue Breakdown - The company's largest market, the United States, accounted for approximately 67.3% of total revenue, down from 78.4% in 2022[7]. - Revenue from the toy segment was HKD 320,392 thousand, down 43.5% from HKD 566,174 thousand in the previous year[76]. - Revenue in the US market decreased by HKD 228,535,000 or 50.5% to HKD 224,096,000 compared to the same period last year[196]. - Revenue in Canada decreased by HKD 11,214,000 or 25.8% to HKD 32,235,000 in the first half of 2023 compared to the same period last year[177]. - Sales in the Australian and New Zealand markets fell by HKD 1,360,000 or 8.0% to HKD 15,585,000 in the first half of 2023 compared to the same period last year[179]. - The overall revenue in Europe declined due to poor sales performance in France, Spain, Sweden, Italy, and Switzerland, despite good performance in Belgium, Czech Republic, Denmark, Germany, Croatia, Portugal, and the UK[176]. Profitability Metrics - The gross profit for the same period was HKD 153.9 million, representing a gross margin of 46.2%, compared to HKD 239.9 million and a gross margin of 41.5% in 2022[9]. - The basic and diluted earnings per share for the period were HKD 0.05, a decrease from HKD 9.52 in the same period last year[9]. - The basic earnings per share dropped to HKD 0.05, down 99.5% from HKD 9.52 in the prior year[24]. - The gross profit margin improved to 46.2%, up from 41.6%, reflecting an increase of 11.1%[24]. Cash Flow and Assets - For the six months ended June 30, 2023, the net cash generated from operating activities was (36,649) thousand HKD, compared to 147,559 thousand HKD in the same period of 2022, indicating a significant decline[51]. - The total assets decreased to HKD 1,017.6 million from HKD 1,082.6 million in the previous year[11]. - Cash and cash equivalents decreased by 120,165 thousand HKD during the first half of 2023, compared to an increase of 65,498 thousand HKD in the same period of 2022[51]. - The total assets as of June 30, 2023, amounted to 1,263,221 thousand HKD, while total liabilities were 227,456 thousand HKD, resulting in a net asset position[73]. - The total assets of the group as of June 30, 2023, were approximately HKD 1,180,790,000, a decrease from HKD 1,263,221,000 as of December 31, 2022[190]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 2.0 per share, a reduction of 50% from HKD 4.0 in the previous year[24]. - The total dividend paid in June 2023 was HKD 60,496,000, an increase from HKD 45,372,000 paid in June 2022, representing a growth of 33.3%[121]. - The company declared an interim cash dividend of HKD 0.02 per share for the six months ended June 30, 2023, down from HKD 0.04 per share in the previous year[156]. Operational Strategy and Market Focus - The company is focusing on optimizing production technology and capacity while managing operational costs prudently[25]. - The company continues to focus on the manufacturing and trading of toys and lighting products, with no significant changes in operational strategy reported[52]. - The group aims to optimize production technology and capacity, expand product and customer portfolios, and manage operational costs prudently in response to challenges posed by rapid technological advancements, particularly in AI[173]. - The company aims to maintain its licensing business for major brands and enrich other product lines[197]. - The overall performance indicates a need for strategic adjustments in product offerings and market focus[196][199]. Economic Outlook - The overall economic outlook remains challenging due to rising inflation and increased uncertainty, impacting the company's sales performance[157]. - The outlook for 2023 is challenging due to persistent high inflation and rising interest rates, which will continue to impact sales in major markets, particularly in the US and Europe[182].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，且明確表示，概不對因本公佈 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 MATRIX HOLDINGS LIMITED 美 力 時 集 團 有 限 公 司 * （於百慕達註冊成立的有限公司） （股份代號：1005） 二 零 二 三 年 中 期 業 績 公 佈 美力時集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核 簡明綜合中期業績連同二零二二年同期之比較數字。 簡明綜合損益及其他全面收入報表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 營業額 4 332,795 577,164 銷售成本 (178,92 8) (337,28 9) 毛利 153,867 239,875 ...

Intangible Assets and Impairment - The company recognizes intangible assets acquired independently with a finite useful life, such as patents, at cost less accumulated amortization and any accumulated impairment losses[1]. - Intangible assets with indefinite useful lives, such as trademarks, are reported at cost less any subsequent accumulated impairment losses[1]. - The carrying amount of trademarks at the reporting period end was approximately zero, with an impairment loss of HKD 9,278,000 recognized, compared to HKD 2,499,000 in 2021[66]. - The company assesses non-financial assets for impairment at each reporting date, recognizing any impairment loss in the income statement[23]. - The impairment loss for cash-generating units is first allocated based on goodwill and then proportionately to other assets of the cash-generating unit[49]. Financial Assets and Credit Risk - The company measures financial assets at amortized cost if the investment is held to collect solely principal and interest payments[8]. - Trade receivables are recognized at amortized cost less credit loss allowances, using the effective interest method[10]. - Expected credit loss provisions for financial assets are updated at each reporting date to reflect changes in credit risk since initial recognition[24]. - The group evaluates the credit risk of financial instruments to determine if there has been a significant increase in credit risk since initial recognition[51]. - The company considers a financial asset to have low credit risk if it has an external credit rating of "investment grade" or an internal rating of "good"[29]. - If a financial asset is overdue by more than 90 days, it is considered a default event unless there is reliable information to support a more lenient standard[31]. - The group assesses expected credit losses based on the difference between all contractual cash flows expected to be received and the cash flows expected to be collected[66]. Taxation - The company recognizes deferred tax liabilities based on the tax rates expected to apply when the liabilities are settled[21]. - The group must pay income tax in multiple jurisdictions, and significant estimates are required in determining income tax provisions[63]. - The income tax for the year ended December 31, 2022, was HKD 16,888,000, compared to HKD 16,279,000 in 2021[41]. Property, Plant, and Equipment - The carrying amounts of property, plant, and equipment as of December 31, 2022, were HKD 155,881,000 and HKD 235,626,000, respectively, compared to HKD 176,148,000 and HKD 258,463,000 in 2021[64]. - The economic useful life and residual value of property, plant, and equipment are estimated based on current market prices and other economic factors[39]. - The company's capital expenditure for property, plant, and equipment was approximately HKD 32,270,000, aimed at enhancing production capacity[184]. Revenue and Profitability - The company's consolidated revenue for 2022 decreased by approximately HKD 96,543,000 or 8.9% to about HKD 986,094,000 compared to the previous year[128]. - The profit attributable to the company's owners was approximately HKD 6,228,000, a decrease of 88.7% from the previous year's profit of approximately HKD 55,092,000[128]. - The gross profit for the year decreased by about 8.0% to approximately HKD 406,635,000 due to reduced sales[133]. - The company's revenue for the fiscal year ended December 31, 2022, was approximately HKD 986,094,000, a decrease of about 8.9% from HKD 1,082,637,000 in the previous year[152]. - The net profit attributable to the company's owners was approximately HKD 6,228,000, down 88.7% from HKD 55,092,000 in the previous year[152]. - Revenue from the United States decreased by approximately HKD 77,178,000 or 9.5%, totaling around HKD 736,916,000[187]. - Revenue from the European market decreased by approximately HKD 7,134,000 or 8.0%, totaling around HKD 81,797,000[169]. - Revenue from Mexico increased by approximately HKD 961,000 or 7.5%, reaching about HKD 13,753,000[171]. Corporate Governance - The board of directors held five meetings during the year, with all members receiving sufficient information to make informed decisions[76]. - The company has adopted a code of conduct for securities trading by directors, in compliance with the listing rules[79]. - The company reported a significant focus on enhancing corporate governance practices in line with the Hong Kong Stock Exchange's guidelines, ensuring compliance as of December 31, 2022[104]. - The board consists of five executive directors and three independent non-executive directors, meeting the requirement of having at least one-third independent members[106]. - The remuneration committee is responsible for reviewing the compensation policies for directors and senior management, ensuring the company can attract and retain high-quality talent[111]. - The company has introduced director development programs to ensure board members are well-informed and skilled[113]. Operational Performance and Strategy - The company operates four factories in Vietnam and employs around 3,000 staff across various regions including Hong Kong, China, and the United States[122]. - The company aims to enhance its product portfolio and diversify its customer base despite economic uncertainties and geopolitical risks[115]. - The company will continue to manage its financial and cash position prudently to strengthen its ability to respond to adverse business conditions[115]. - The company plans to increase automation to improve efficiency and maximize long-term returns for shareholders[115]. - The company launched a new vehicle product "Rocket Alliance" in the third quarter of 2022 to enrich its product portfolio[149]. - The company launched a new toy car product "Rocket League" in the third quarter to enrich its product portfolio[185]. - The company continues to focus on improving product and inventory management to retain customers amid the negative impacts of the pandemic[198]. - New toy product brands "CAT," "Fart Ninjas," and "Bright Fairy Friends" are being introduced with new sales plans[198]. Financial Position and Cash Flow - The company maintained a strong cash flow position, with cash and bank balances of approximately HKD 258,959,000 as of December 31, 2022, compared to HKD 164,076,000 in the previous year[158]. - The operating cash flow for the year was approximately HKD 229,171,000, an increase from HKD 207,747,000 in the previous year[159]. - The current ratio improved to 3.5, up from 3.2 in the previous year, mainly due to a decrease in trade payables[143][157]. - Trade payables decreased by approximately 59.6% to about HKD 29,085,000, primarily due to reduced procurement of raw materials[135]. - The company implemented cost control measures and automation to manage financial and cash flow challenges in a difficult operating environment[185]. - The company's total assets decreased by approximately 8.1% to about HKD 1,263,221,000 from HKD 1,416,142,000 in the previous year[184]. Market Conditions - Consumer purchasing power has been weakened due to soaring electricity and food prices, with new job creation and spending on goods and services slowing down[198]. - The revenue breakdown by market shows that the United States accounted for 74.7% and Europe for 8.3% of total revenue in 2022[126]. - Research and development expenses decreased by approximately 4.2% to about HKD 20,624,000 due to fewer resources allocated for toy product development[156]. - The company declared a final dividend of HKD 0.08 per share, up from HKD 0.06 per share in the previous year, resulting in a total dividend of HKD 0.12 per share for the year[178].