Financial Performance - The company's revenue for the six months ended June 30, 2021, was approximately HKD 484,463,000, representing a 24.3% increase from HKD 389,611,000 in the same period last year[10]. - The profit attributable to the company's owners was approximately HKD 33,337,000, a significant turnaround from a loss of HKD 37,108,000 in the previous year, marking an increase of 189.8%[10]. - Basic earnings per share improved to HKD 0.04, compared to a loss of HKD 0.05 per share in the prior year, reflecting a 180% increase[10]. - The gross profit margin increased to 38.6%, up from 30.2% in the previous year, indicating a 27.8% improvement[9]. - The company reported a total comprehensive income of HKD 28,798,000 for the period, compared to a loss of HKD 44,409,000 in the previous year[13]. - The company reported a pre-tax loss of HKD 38,756,000 for the six months ended June 30, 2021[67]. - Gross profit increased by approximately 58.8% to about HKD 187,096,000 due to higher sales[107]. Market Performance - The United States continued to be the largest market for the company, accounting for approximately 73.3% of total revenue, down from 76.4% in the previous year[11]. - Other significant markets included Europe at 10.2%, Canada at 10.1%, and Australia at 3.3%[11]. - Revenue from the U.S. market increased by HKD 57,358,000 or 19.3% to HKD 355,022,000 in the first half of 2021 compared to the same period last year[129]. - European revenue rose by HKD 17,494,000 or 55.0% to HKD 49,324,000 in the first half of 2021, driven by improved consumer sentiment and lifted restrictions[130]. - Canadian revenue increased by HKD 15,841,000 or 47.7% to HKD 49,061,000 in the first half of 2021, attributed to strong sales of "Gazillion" products and "CAT" toy vehicles[131]. - Revenue in the Australia and New Zealand market increased by HKD 3,384,000 or 26.6% to HKD 16,120,000 in the first half of this year compared to the same period last year[133]. - Revenue in the South America market surged by HKD 2,193,000 or 105.5% to HKD 4,271,000 in the first half of this year compared to the same period last year[134]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.02 per share, a 33.3% increase from HKD 0.015 per share in the previous year[9]. - The company paid dividends amounting to HKD 30,248,000 during the period, compared to HKD 22,686,000 in the previous year, representing an increase of 33.4%[35]. - The company declared an interim cash dividend of HKD 0.02 per share for the six months ended June 30, 2021, compared to HKD 0.015 per share in the previous year[105]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 1,365,339,000, a slight decrease from HKD 1,374,342,000 as of December 31, 2020[16]. - The company reported a total equity of HKD 1,114,190,000 as of June 30, 2021, compared to HKD 1,115,640,000 at the end of 2020, reflecting a minor decrease of 0.13%[16]. - The company’s total liabilities decreased to HKD 251,149,000 from HKD 258,702,000, a reduction of 2.0%[16]. - The company's trade receivables amounted to HKD 162,237,000 as of June 30, 2021, down from HKD 233,000,000 at the end of 2020[86]. - The total liabilities, including trade and other payables, were HKD 152,972,000 as of June 30, 2021, compared to HKD 147,423,000 at the end of 2020[89]. Operational Efficiency - The company has implemented measures to enhance efficiency and strengthen cost control to mitigate the impact of the COVID-19 pandemic on operations[10]. - Distribution and selling costs decreased by approximately 3.4% to about HKD 63,313,000, primarily due to reduced marketing expenses[108]. - Administrative expenses decreased by approximately 2.8% to about HKD 76,698,000, mainly due to a reduction in employee salaries[109]. - The company aims to reduce operational costs by 15% through efficiency improvements in the supply chain[169]. Future Outlook and Strategy - The company plans to continue focusing on high-margin products and diversify its product portfolio to meet growing customer demand[141]. - The company will implement strict cost control measures to reduce labor costs and enhance production capacity through higher levels of automation[141]. - New products under the "CAT" brand and other toy lines such as "Herodrive," "Fart Ninjas," and "Bright Fairy Friends" will be launched to enrich the product range[142]. - The company aims to strengthen its online distribution channels to cater to increasing customer needs[141]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[169]. - Strategic acquisitions are planned to enhance product offerings, with an estimated investment of HKD 500 million[169]. - The company is investing in research and development, allocating 10% of its revenue towards new technology advancements[169]. - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% year-over-year[169]. Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and were approved for publication on August 26, 2021[43]. - The financial report is unaudited, which is a standard practice for interim financial statements[43]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2021, and found them compliant with applicable accounting standards and legal requirements[168]. - The company is listed on the Hong Kong Stock Exchange, indicating its commitment to transparency and regulatory compliance[41]. Employee and Stakeholder Relations - The total number of employees remains stable at approximately 6,000 as of June 30, 2021[143]. - The company is committed to maintaining healthy relationships with stakeholders and fulfilling its social responsibilities[138].
MATRIX HOLDINGS(01005) - 2021 - 中期财报