Financial Performance - The company's revenue for the six months ended June 30, 2020, was approximately HKD 389,611,000, a decrease of 33.8% compared to HKD 588,687,000 in the same period last year[8]. - The loss attributable to the company's owners was approximately HKD 37,108,000, a decline of 129.9% from a profit of HKD 124,274,000 in the previous year[9]. - The basic loss per share was HKD 0.05, compared to a profit of HKD 0.16 per share in the same period last year, representing a decrease of 131.3%[12]. - Total comprehensive loss for the period was HKD 44,409,000, compared to a comprehensive income of HKD 117,718,000 in the same period last year[12]. - The operating profit for the six months ended June 30, 2020, was HKD 29,483,000, compared to HKD 116,821,000 for the same period in 2019, indicating a decrease of about 74.8%[54]. - The company reported a pre-tax loss of HKD 38,756,000 for the six months ended June 30, 2020, compared to a pre-tax profit of HKD 122,365,000 for the same period in 2019[54]. - Gross profit decreased by 43.8% to approximately HKD 117,793,000 due to reduced sales[115]. Revenue Breakdown - The revenue from toys was HKD 368,714,000 for the six months ended June 30, 2020, down from HKD 549,410,000 in 2019, reflecting a decline of approximately 33%[70]. - The revenue from lighting products was HKD 20,897,000 for the six months ended June 30, 2020, compared to HKD 39,277,000 in 2019, showing a decrease of about 46.8%[70]. - Revenue in the US decreased by HKD 188,392,000 or 38.8% to HKD 297,664,000 in the first half of the year compared to the same period last year[136]. - Revenue in Europe fell by HKD 21,388,000 or 40.2% to HKD 31,830,000 in the first half of the year compared to the same period last year[137]. - Revenue in Canada increased by HKD 4,939,000 or 17.5% to HKD 33,220,000 in the first half of the year compared to the same period last year[140]. - Revenue in Mexico surged by HKD 4,894,000 or 147.4% to HKD 8,215,000 in the first half of the year compared to the same period last year[141]. - Revenue in Australia and New Zealand rose by HKD 797,000 or 6.7% to HKD 12,736,000 in the first half of the year compared to the same period last year[142]. - Revenue in South America decreased by HKD 340,000 or 14.1% to HKD 2,078,000 in the first half of the year compared to the same period last year[143]. Cost Management - The company implemented measures to enhance efficiency and strengthen cost control in response to the impact of the COVID-19 pandemic[9]. - The company reported a decrease in operating expenses, including marketing, sales, and administrative costs, due to the overall decline in revenue[9]. - Distribution and selling costs decreased by approximately 10.8% to about HKD 65,526,000, mainly due to reduced advertising and patent fees[116]. - Administrative expenses decreased by approximately 10.5% to about HKD 78,874,000, primarily due to lower employee salaries and professional fees[117]. - Research and development expenses for the period were HKD 10,225,000, down from HKD 13,700,000 in the previous year[12]. - Research and development expenses decreased by approximately 25.4% to about HKD 10,225,000, mainly due to fewer resources allocated for toy product development[120]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 1,305,967 thousand, a decrease from HKD 1,432,923 thousand as of December 31, 2019, representing a decline of approximately 8.8%[13]. - Total liabilities decreased to HKD 231,242 thousand from HKD 291,103 thousand, a reduction of approximately 20.6%[13]. - Non-current assets totaled HKD 626,316 thousand, slightly increasing from HKD 621,214 thousand, while current assets decreased from HKD 811,709 thousand to HKD 679,651 thousand, a reduction of about 16.2%[13]. - The company's equity attributable to owners decreased to HKD 1,079,658 thousand from HKD 1,144,966 thousand, reflecting a decline of approximately 5.7%[13]. - Cash and cash equivalents increased to HKD 160,594 thousand from HKD 133,832 thousand, marking an increase of about 20%[13]. - Trade receivables as of June 30, 2020, amounted to HKD 144,894,000, a decrease of 50.2% from HKD 290,564,000 as of December 31, 2019[91]. - Trade payables decreased from HKD 69,021,000 to HKD 46,955,000, a reduction of approximately 32%[93]. - Other payables and accrued expenses decreased from HKD 96,558,000 to HKD 80,783,000, a reduction of about 16%[93]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.015 per share, a decrease of 72.7% from HKD 0.055 in the previous year[8]. - The company paid dividends of HKD 22,686 thousand during the period, down from HKD 37,810 thousand in the previous year, a decrease of about 40%[23]. - As of June 30, 2020, Smart Forest Limited, owned by Zheng Rongbin, holds 548,573,569 shares, representing 72.54% of the company's issued share capital[170]. - The company has granted a total of 26,600,000 share options, which accounts for approximately 3.52% of the issued shares as of June 30, 2020[169]. Operational Changes - The group reported a decline in revenue and production capacity due to the impact of the COVID-19 pandemic, despite receiving some government subsidies[32]. - The company plans to focus on higher-margin products and diversify its offerings to meet growing customer demand[147]. - The company will continue to enhance online distribution channels and strictly control costs to improve profitability[147]. - The company aims to launch multiple new vehicle toys under the "CAT" brand and expand its product range[149]. - As of June 30, 2020, the company employed approximately 7,100 staff, a decrease from 7,700 at the end of 2019[150]. Accounting and Compliance - The financial report was approved for publication on August 27, 2020, and is unaudited[29][30]. - The group has adopted new accounting policies in accordance with the revised Hong Kong Financial Reporting Standards effective from January 1, 2020[39]. - The financial statements have been prepared based on historical cost principles, consistent with the previous year's annual financial statements[38]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2020, and found them to comply with applicable accounting standards and legal requirements[185].
MATRIX HOLDINGS(01005) - 2020 - 中期财报