Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of HKD 456,859,000, a decrease of 36% compared to HKD 714,486,000 in 2023[3] - The gross profit for the same period was HKD 152,366,000, down 50.7% from HKD 308,680,000 in the previous year[3] - The operating loss increased to HKD 271,477,000 from HKD 94,827,000, reflecting a significant decline in operational performance[3] - The net loss for the year was HKD 298,731,000, compared to a net loss of HKD 102,940,000 in 2023, indicating a worsening financial situation[4] - The company reported a basic and diluted loss per share of HKD 39.5, compared to HKD 13.6 in the previous year, indicating increased losses per share[4] - The loss attributable to shareholders for 2024 was approximately HKD 298,573,000, an increase of 191.0% from a loss of HKD 102,604,000 in 2023[19] - Gross profit decreased by approximately 50.6% to about HKD 152,366,000 due to reduced sales[25] - The group reported a loss of HKD 298,731,000 for the year ending December 31, 2024, with bank deposits and cash decreasing from HKD 181,202,000 to HKD 57,733,000[9] Assets and Liabilities - Total assets decreased to HKD 558,067,000 from HKD 883,592,000, showing a reduction in the company's asset base[6] - The company's cash and bank balances fell to HKD 56,834,000 from HKD 181,202,000, highlighting liquidity challenges[5] - Non-current liabilities, specifically lease liabilities, increased to HKD 61,746,000 from HKD 30,620,000, indicating rising financial obligations[6] - The company's equity attributable to owners decreased to HKD 507,013,000 from HKD 863,734,000, reflecting a significant drop in shareholder value[6] - Trade receivables and notes receivable decreased by approximately 31.7% to about HKD 77,591,000, mainly due to reduced sales[29] - Trade payables decreased by approximately 10.9% to about HKD 27,007,000, primarily due to reduced raw material purchases[30] - Total assets as of December 31, 2024, approximately HKD 694,161,000, down from HKD 1,031,356,000 in 2023, with total liabilities at HKD 199,599,000[38] Cash Flow and Financial Support - The group received financial support of HKD 20,000,000 from the ultimate controlling party to ensure operational continuity for the next 15 months[9] - The group’s interest income from bank deposits decreased to HKD 1,106,000 in 2024 from HKD 3,348,000 in 2023[16] - The group’s total other income for the year ending December 31, 2024, was HKD 11,319,000, down from HKD 26,652,000 in the previous year[16] - Cash flow significantly decreased, but bank borrowings maintained at a minimum level[33] - As of December 31, 2024, bank cash and deposits balance approximately HKD 57,733,000, down from HKD 181,202,000 in 2023[34] Operational Changes and Strategies - The company is primarily engaged in the manufacturing and trading of toys and lighting products, as well as property development, which may impact future growth strategies[7] - The group has reclassified its operational segments to focus on manufacturing toys and lighting products as a single reportable segment[14] - The company plans to distribute a final dividend of HKD 0.01 per share for the year ending December 31, 2024[18] - The company plans to pay an interim dividend of HKD 1.5 per share for the year ending December 31, 2024, down from HKD 2.0 in 2023[53] - The total dividend for the year will amount to HKD 2.5 per share, compared to HKD 5.0 in 2023[53] - The company will continue to invest in automation to enhance efficiency and maximize long-term returns for shareholders[51] - The company aims to expand its product range and strengthen its customer base in response to global economic uncertainties[51] - The company is focusing on real estate investments in Vietnam to capitalize on growth opportunities in Southeast Asia[52] Governance and Compliance - The group did not apply any new accounting standards or interpretations that have not yet come into effect during the year[12] - The group has implemented new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on financial performance[11] - The independent auditor's report indicated that the financial statements reflect the group's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[63] - The prior auditor's opinion was modified due to concerns regarding the commercial substance of the horse management service income[67] - The board believes that the agreement constitutes financial assistance from a related party and has favorable commercial terms, qualifying as a fully exempt related transaction under listing rules[68] - The board has adopted a corporate governance code based on the principles outlined in the Hong Kong Stock Exchange Listing Rules[56] Employee and Market Conditions - Employee count decreased to approximately 2,200 from 2,310 in 2023, with competitive compensation policies in place[46] - The U.S. toy industry is expected to experience stagnant growth by 2025 due to economic and consumer behavior factors[50] - Sales of proprietary brands and original design manufacturing brands decreased due to cautious inventory management by customers[42] - New licensed products and proprietary brands launched to expand supply and maintain customer loyalty[43] - The company will implement flexible strategies to adapt to challenges and opportunities in the market[51] Miscellaneous - The company will hold its annual general meeting on May 15, 2025, at 2:30 PM[59] - Share transfer registration will be suspended from May 9 to May 15, 2025, to determine the rights of shareholders attending the annual general meeting[60] - The company confirmed that all documents related to share registration must be submitted by May 8, 2025, at 4:30 PM[60] - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2024[61] - The independent auditor's report was prepared by KPMG (Hong Kong) for the year ended December 31, 2024[62] - As of September 2024, the company has reduced capital investments in related development projects due to delays in land acquisition and a decline in core manufacturing operations[69] - The company has temporarily suspended horse racing operations, which has helped alleviate related concerns[69] - Audit adjustments related to the previous year have been resolved as of December 31, 2024, except for factors that may affect comparable data for 2024[69] - The company's annual report and shareholder meeting notice will be sent to shareholders and published on the exchange website at the appropriate time[70] - The board of directors currently includes executive directors Zheng Rongbin, Zheng Jingzhang, Ye Xiaoxia, and Shirley Marie Price, as well as independent non-executive directors Mai Zhaozhong, Xing Jiawei, and Cui Jiaxing[71]
MATRIX HOLDINGS(01005) - 2024 - 年度业绩