Financial Performance - The group's revenue for the six months ended June 30, 2024, decreased by approximately 41.6% to about HKD 194,250,000, down from HKD 332,795,000 in the same period last year[6]. - The company reported a loss attributable to shareholders of approximately HKD 84,008,000, compared to a profit of HKD 414,000 in the previous year, marking a significant decline of 20,391.8%[5]. - The gross profit margin decreased to 38.6% from 46.2%, reflecting a drop of 5.5 percentage points year-on-year[5]. - Revenue for the six months ended June 30, 2024, was HKD 194,250,000, a decrease of 41.8% compared to HKD 332,795,000 in the same period of 2023[7]. - Gross profit for the same period was HKD 74,925,000, down 51.2% from HKD 153,867,000 year-over-year[7]. - The company reported a loss before tax of HKD 84,423,000, compared to a profit of HKD 407,000 in the prior year[7]. - Net loss for the period was HKD 84,519,000, a significant decline from a profit of HKD 387,000 in the previous year[7]. - Total comprehensive loss for the period amounted to HKD 95,644,000, compared to a comprehensive income of HKD 3,291,000 in the same period last year[7]. - Basic and diluted loss per share for the period was HKD (11.11), compared to earnings of HKD 0.05 per share in the previous year[7]. Market Performance - The United States remains the largest market for the group, accounting for approximately 63.0% of total revenue, down from 67.3% in the previous year[6]. - Other significant markets include Europe (16.5%), Canada (10.6%), and Australia/New Zealand (6.0%), with respective increases from 13.1%, 9.7%, and 4.7% in the previous year[6]. - In the first half of 2024, the company's revenue in the United States decreased by HKD 101,744,000 or 45.4% to HKD 122,352,000 compared to the same period last year[72]. - Revenue in Europe fell by HKD 11,645,000 or 26.7% to HKD 32,019,000 in the first half of 2024, impacted by inflation and energy price volatility due to the Russia-Ukraine conflict[72]. - Canadian revenue decreased by HKD 11,663,000 or 36.2% to HKD 20,572,000, with inflation trends and rising commodity prices contributing to the decline[72]. - Revenue in Mexico dropped by HKD 1,125,000 or 25.5% to HKD 3,292,000, primarily due to lower sales of "CAT" and "FART NINJAS" products[73]. - The company's revenue in Australia and New Zealand decreased by HKD 3,901,000 or 25.0% to HKD 11,684,000, despite growth in "CAT" and "FART NINJAS" sales[74]. - South America experienced a significant revenue decline of HKD 4,243,000 or 72.7% to HKD 1,591,000, with sales in several countries dropping sharply[74]. Operational Adjustments - The decline in sales is attributed to weak global economic growth, rising inflation, and increased uncertainty, leading to cautious inventory management by customers[6]. - The company is focusing on optimizing production technology and capacity while managing operational costs prudently in response to market challenges[6]. - The integration of advanced automation in production processes is leading to necessary adjustments in the customer portfolio[6]. - The company is enhancing production efficiency through automation and skill development in its manufacturing facilities in Vietnam[70]. - The company continues to focus on maintaining strong relationships with major distributors and customers, including Walmart and Amazon, despite the challenging market conditions[72]. Financial Position - Cash and cash equivalents decreased to HKD 84,493,000 from HKD 181,202,000 at the end of 2023, reflecting a decline of 53.3%[8]. - Inventory increased to HKD 211,478,000, up 11.7% from HKD 189,275,000 at the end of 2023[8]. - The company's total assets decreased to HKD 1,228,641,000 from HKD 1,431,355,000 at the end of 2023, indicating a reduction of 14.2%[8]. - The company's equity attributable to owners decreased to HKD 745,915,000 from HKD 863,734,000, a decline of 13.7%[8]. - The group's total assets were approximately HKD 928,641,000, down from HKD 1,031,356,000 as of December 31, 2023[67]. - The group's cash and cash equivalents were approximately HKD 84,493,000 as of June 30, 2024, compared to HKD 181,202,000 as of December 31, 2023[65]. - The group’s net asset value decreased by 13.9% to approximately HKD 732,900,000 as of June 30, 2024, down from HKD 851,230,000 as of December 31, 2023[67]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 1.5 cents per share, down 25.0% from HKD 2.0 cents in the previous year[5]. - The company paid dividends amounting to HKD 22,686,000, a significant decrease from HKD 60,496,000 in the previous year, indicating a reduction of 62.5%[14]. - As of June 30, 2024, Smart Forest Limited, owned by director Zheng Rongbin, holds 71.22% of the company's issued share capital[84]. - No stock options were granted, exercised, canceled, or lapsed during the six months ended June 30, 2024[82]. Future Outlook - The company is focusing on market expansion and product development to recover from the revenue decline experienced in the first half of 2024[35]. - The group acknowledges potential economic headwinds in the second half of 2024, including geopolitical instability and ongoing inflation pressures[77]. - The group plans to enhance its product portfolio by developing sustainable and technology-driven products while diversifying its customer base[78]. - The group aims to invest in property in Vietnam, capitalizing on the growth opportunities in the Southeast Asian market[78]. - The ongoing geopolitical tensions and inflationary pressures are expected to continue impacting the company's performance and market strategies[72].

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].

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 * （於百慕達註冊成立之有限公司） 1005 （股份代號： ） 二 零 二 二 年 末 期 業 績 公 佈 美力時集團有限公司（「本公司」）董事會（「董事」）欣然公佈本公司及其附屬公司 （統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績如 下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 營業額 4 986,094 1,082,637 銷售成本 (579,459) (640,660) 毛利 406,635 441,977 其他收入 6 16,424 14,456 其他收益及虧損 7 (1,918) (4,135) 無形資產減值虧損 (6,779) (7,000) 按金減值虧損 (11,000) – ...

Matrix Holdings Limited 美 力 時 集 團 有 限 公 司 ( 於百慕進註冊成立之有限公司 ) 股份代號：1005 2022 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法例， 務求所有生產過程均符合環保標準 • 不斷爭取業務增長、業務多元化及 提高生產力，為股東爭取最佳回報 公司資料 | --- | --- | |------------------------|------------------------------------------------------------------| | 董事會 | 註冊辦事處 | | 執行董事 | Victoria Place, 5th Floor | | 鄭榕彬 （主席） | 31 Victoria Street | | 鄭敬璋 | Hamilton HM 10 | | 曾松華 | Bermuda | | 謝錦華 | | | 葉曉霞 | 股份過戶登記處 | | 獨立非執行董事 | MUFG Fund Servic ...

Financial Performance - The company reported a revenue of HKD 1,082,637,000 for the year ended December 31, 2021, representing a 20.1% increase from HKD 901,141,000 in 2020[13] - Gross profit increased by 25.9% to HKD 441,977,000, up from HKD 351,159,000 in the previous year[13] - Net profit attributable to shareholders surged by 420.3% to HKD 55,092,000, compared to HKD 10,588,000 in 2020[13] - Basic earnings per share rose to HKD 0.07, a 600.0% increase from HKD 0.01 in the prior year[13] - The company declared a final dividend of HKD 0.06 per share, a 50.0% increase from HKD 0.04 in 2020[13] - The gross margin improved to 40.8%, up from 39.0% in the previous year, while the net margin increased to 5.1% from 1.2%[13] - The group's consolidated revenue for the fiscal year ended December 31, 2021, was approximately HKD 1,082,637,000, an increase of about HKD 181,496,000 or 20.1% compared to the previous year[21] - The profit attributable to the company's owners was approximately HKD 55,092,000, representing a significant increase of 420.3% from the previous year's profit of approximately HKD 10,588,000[21] - Gross profit increased by approximately 25.9% to about HKD 441,977,000 due to increased sales[25] Expenses and Costs - Distribution and selling costs rose by approximately 10.8% to about HKD 174,590,000, primarily due to increased royalty expenses[26] - Administrative expenses increased by approximately 21.9% to about HKD 154,169,000, mainly due to higher salaries, rent, and depreciation[27] - Research and development expenses decreased by approximately 6.6% to about HKD 21,529,000 due to fewer resources allocated for toy product development[31] Financial Ratios and Stability - The capital debt ratio decreased to 0.7%, down from 1.1%, indicating improved financial stability[13] - The current ratio was reported at 3.2, a decrease of 17.9% from the previous year, while the quick ratio fell to 1.7, down 26.1%[13] - Trade receivables decreased by approximately 20.4% to about HKD 185,482,000, attributed to faster collection of receivables[32] - The group's total assets as of December 31, 2021, were approximately HKD 1,416,142,000, an increase from HKD 1,374,342,000 in the previous year[42] - The capital debt ratio decreased to 0.7% from 1.1% in the previous year due to reduced bank borrowings[39] Market Performance - The group's revenue from the United States increased by approximately HKD 136,597,000 or 20.2% to about HKD 814,094,000 this year[51] - Revenue from the Canadian market rose by approximately HKD 22,435,000 or 30.5% to about HKD 95,983,000 this year[53] - European revenue increased by approximately HKD 10,281,000 or 13.1% to about HKD 88,931,000 this year[55] - Revenue from the South American market grew by approximately HKD 5,020,000 or 71.3% to about HKD 12,065,000 this year[62] Workforce and Operations - The company operates four factories in Vietnam and employs approximately 5,600 staff across various regions including Hong Kong, China, and the United States[8] - The group's employee count decreased to approximately 5,600 from 6,600 in the previous year[63] - The group continues to maintain existing distributors and customers, including Walmart, Costco Canada, and Amazon[54] - The group is focusing on new toy product brands such as "CAT," "Fart Ninjas," and "Bright Fairy Friends" with new sales plans[50] - The group is optimizing supply chain processes and increasing automation to enhance production capacity and quality[49] - The group aims to sustain its major brand licensing business while enriching other product lines[51] Environmental Commitment - The total greenhouse gas emissions for the reporting year amounted to 18,807.05 tons of CO2 equivalent, an increase from 15,309.21 tons in the previous year, representing a year-over-year increase of approximately 22.5%[164] - The primary source of greenhouse gas emissions was indirect emissions from purchased electricity, accounting for 99.79% of total emissions at 18,768.46 tons, compared to 99.7% in the previous year[165] - The company has implemented energy-saving measures, including the use of infrared nano heating barrel injection machines and hydraulic servo motors, to reduce carbon emissions[160] - The company is committed to enhancing the efficiency of energy, water, and material usage while adhering to local environmental regulations and international standards[161] - The company has established management mechanisms to minimize operational impacts on the environment and ensure sustainable development[160] - The company engages with stakeholders to gather feedback on environmental, social, and governance issues through various platforms[156] - The company’s board regularly reviews and supervises its environmental, social, and governance policies to align with relevant laws and regulations[157] Corporate Governance - The board of directors consists of five executive directors and three independent non-executive directors, with at least one-third being independent[86] - The company has adopted a corporate governance code in compliance with the Hong Kong Stock Exchange's listing rules[85] - The roles of the chairman and CEO are separated, with Zheng Rongbin as chairman and Ye Xiaoxia as CEO[92] - Independent non-executive directors have confirmed their independence according to applicable listing rules[89] - The company has established committees to assist the board in fulfilling its responsibilities[86] - The board is responsible for strategic development and monitoring business operations to enhance shareholder value[86] - The company ensures that all directors receive sufficient and reliable information for informed decision-making[93] - All directors participated in continuous professional development to ensure they are well-informed and can contribute effectively to the board[5] Safety and Labor Practices - The company maintains a strict policy against child and forced labor, adhering to applicable labor laws in Vietnam[197] - The number of work-related injuries resulting in more than 3 days off decreased to 9 in 2021 from 16 in 2020, representing a 43.75% reduction[190] - The total number of workdays lost due to injuries was 70 in 2021, down from 228 in 2020, indicating a significant improvement in workplace safety[190] - The total training hours per factory employee remained at 4 hours in both 2021 and 2020[193] - The total number of factory employees trained in 2021 was 4,940, down from 5,326 in 2020, indicating a reduction of approximately 7.25%[193] Supplier Management - The company has approximately 500 suppliers across regions including Hong Kong, China, and Vietnam[199] - Supplier evaluation criteria include production processes, quality management systems, compliance, operational capabilities, and pricing to ensure cost-effective procurement[200]