Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 238,025,000, representing a 22.5% increase from HKD 194,250,000 in the same period of 2024[4] - Gross profit for the same period was HKD 90,631,000, up 20.9% from HKD 74,925,000 year-on-year[4] - The company reported a loss before tax of HKD 11,644,000, significantly improved from a loss of HKD 84,423,000 in the previous year[4] - Total comprehensive loss for the period was HKD 35,326,000, compared to HKD 95,644,000 in the same period last year, indicating a reduction of 63.1%[5] - The basic and diluted loss per share for the period was HKD 1.62, compared to HKD 11.11 in the previous year, indicating a significant improvement[5] - The group recorded a loss of HKD 11,871,000 for the six months ended June 30, 2025, compared to a loss of HKD 84,423,000 for the same period in 2024[13][19] - The group reported a pre-tax loss of HKD 11,644,000 for the six months ended June 30, 2025, compared to a pre-tax loss of HKD 84,423,000 for the same period in 2024[19] - The group reported a loss attributable to shareholders of HKD 12,240,000 for the six months ended June 30, 2025, compared to a loss of HKD 84,008,000 in the same period of 2024[29] - The group reported a loss attributable to owners of approximately HKD 12,240,000, a significant reduction of 85.4% compared to a loss of HKD 84,008,000 in the same period last year[34] Assets and Liabilities - Non-current assets totaled HKD 244,062,000 as of June 30, 2025, compared to HKD 229,851,000 at the end of 2024, showing a growth of 6.2%[6] - Current assets amounted to HKD 477,652,000, slightly up from HKD 464,310,000 at the end of 2024[6] - The total equity attributable to owners of the company decreased from HKD 507,013,000 as of December 31, 2024, to HKD 464,861,000 as of June 30, 2025, a decline of approximately 8.3%[7] - The group’s total liabilities included lease liabilities of HKD 94,927,000 as of June 30, 2025, compared to HKD 61,746,000 as of December 31, 2024, indicating an increase of approximately 53.7%[7] - The net asset value of the group was HKD 451,675,000 as of June 30, 2025, down from HKD 494,562,000 as of December 31, 2024, a decrease of approximately 8.6%[7] - The total assets of the group amounted to HKD 721,714,000, with classified assets of HKD 717,956,000[20] - The total liabilities of the group as of June 30, 2025, were HKD 270,039,000, with classified liabilities of HKD 256,910,000[20] Cash Flow and Financial Support - The company’s cash and cash equivalents decreased to HKD 46,085,000 from HKD 56,834,000, a decline of 18.9%[6] - The group's cash and cash equivalents decreased from HKD 57,733,000 as of December 31, 2024, to HKD 46,085,000 as of June 30, 2025, a reduction of approximately 20.2%[13] - The group received financial support of HKD 38,000,000 from the ultimate controlling party to ensure operational continuity for the next 15 months[13] Operational Highlights - The group has reclassified its operational segments to focus on manufacturing toys and lighting products as a single reportable segment[17] - The group’s trade receivables as of June 30, 2025, were HKD 112,643,000, up from HKD 74,701,000 as of December 31, 2024[30] - The group’s non-current assets in Vietnam decreased to HKD 154,072,000 as of June 30, 2025, from HKD 184,334,000 as of December 31, 2024[22] - The group’s depreciation expenses for property, plant, and equipment were HKD 9,112,000 for the six months ended June 30, 2025, compared to HKD 15,918,000 in the same period of 2024[25] - The group’s net foreign exchange loss for the six months ended June 30, 2025, was HKD 25,438,000, compared to a loss of HKD 601,000 in the same period of 2024[25] - Sales of original brand manufacturing products like "Fart Ninjas" and "Gazillion" increased, offsetting declines in other product lines, contributing to improved profitability for the six months ending June 30, 2025[55] - The company is focusing on maintaining customer loyalty in North America and Canada through a rich product offering and optimized inventory management[56] - The main manufacturing base is located in Vietnam, where the company is enhancing supply chain efficiency to reduce production costs[57] - The company has acquired land in Da Nang, Vietnam, to strengthen its local presence and support its diversification strategy in the real estate market[58] - The company is implementing cost control measures and advancing automation to improve competitiveness despite a challenging operating environment[56] Corporate Governance and Compliance - The board has adopted a corporate governance code based on the Hong Kong Stock Exchange rules, ensuring compliance throughout the year[66] - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2025, confirming compliance with applicable accounting standards[69] - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website[70] - The board consists of five executive directors and three independent non-executive directors as of the announcement date[71] - The chairman of the board is Zheng Rongbin, with the announcement dated August 26, 2025[72] Dividends and Shareholder Information - The group declared an interim dividend of HKD 0.01 per share, down from HKD 0.045 per share in 2024[26] - The interim cash dividend declared is HKD 0.01 per share for the six months ended June 30, 2025, down from HKD 0.045 in 2024[64] - The company has not purchased, sold, or redeemed any of its shares during the six months ending June 30, 2025[65] Economic and Market Conditions - The company faces economic uncertainty due to government spending cuts and high tariffs affecting imports, leading to reduced consumer spending, particularly on essential goods[54] - The group plans to focus on innovation and licensed products to adapt to economic and geopolitical uncertainties[62] - No significant investments or acquisitions were reported for the period ending June 30, 2025[51] - No major sales or important corporate events were noted for the period ending June 30, 2025[52] Environmental and Social Responsibility - The company is committed to environmental responsibility through various green office initiatives and plans to implement further environmental measures in its operations[59] - The company emphasizes compliance with applicable laws and regulations, ensuring employee welfare and maintaining strong relationships with stakeholders[60][61] Cost Management - Distribution and selling costs decreased by approximately 23.5% to about HKD 58,873,000, primarily due to reduced advertising expenses[39] - Administrative expenses decreased by approximately 17.0% to about HKD 65,731,000, including reductions in salaries, office rent, and depreciation[40]
MATRIX HOLDINGS(01005) - 2025 - 中期业绩