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].
MATRIX HOLDINGS(01005) - 2023 - 年度业绩