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].
MATRIX HOLDINGS(01005) - 2024 - 中期财报