Matrix Holdings posts HKD 305.23 million H1-2026 revenue, returns to profit but withholds interim dividend amid liquidity pressure

Bulletin Express
09/11

Matrix Holdings Limited reported a 28.20 % year-on-year rise in consolidated revenue to HKD 305.23 million for the six months ended 30 June 2026, driven chiefly by stronger U.S. toy demand and larger orders from a key OEM customer. Gross margin improved to 39.0 % from 38.1 % a year earlier.

The group achieved a profit attributable to shareholders of HKD 4.90 million, marking a turnaround from the HKD 12.24 million loss posted in the comparable 2025 period. Management cited “rigorous cost control” and better absorption of fixed overheads as the primary contributors to the profit swing.

Geographically, the United States remained the dominant market, accounting for 73.1 % of total revenue (2025: 68.6 %). Europe generated 14.7 %, Canada 7.8 %, and Australia & New Zealand 1.8 %.

Operating cash flow stayed negative at HKD 20.71 million, narrowing from a HKD 26.29 million outflow a year earlier. Cash and bank balances fell to HKD 21.69 million, while total lease liabilities, director loans, and bank and other borrowings stood at HKD 194.74 million, of which HKD 118.32 million are current. The board flagged “liquidity challenges” and acknowledged a material uncertainty over going-concern status, reliant on renewing a HKD 11 million banking facility due November 2026, continued shareholder financial support, tighter cost controls, and anticipated sales growth.

Net assets edged up 1.60 % to HKD 291.80 million. Capital expenditure during the period reached HKD 5.67 million, funded mainly by internal resources. Property, plant and equipment closed at HKD 71.23 million after depreciation and disposals.

Despite the earnings rebound, directors adopted a conservative cash stance and did not declare an interim dividend (H1-2025: HKD 0.01 per share). The company emphasised ongoing investment in automation and product innovation, with a focus on licensed and OEM product segments to sustain growth in a still-uncertain macro-economic environment.

Matrix Holdings also reiterated plans to expand into Vietnam’s property market through land acquisitions in Da Nang, although progress has been delayed by government restructuring. No significant disposals or post-period events were reported.

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