Matrix Holdings turns to HK$4.99 million interim profit on 28.2% revenue jump; liquidity risks persist

Bulletin Express
08/25

Matrix Holdings reported an unaudited net profit of HK$4.99 million for the six months ended 30 June 2026, reversing a HK$11.87 million loss a year earlier. Revenue rose 28.2% year on year to HK$305.23 million, driven mainly by higher Original Equipment Manufacturing (OEM) sales, a new major customer and steady U.S. demand.

Gross profit expanded 31.5% to HK$119.18 million, lifting the gross margin by one percentage point to 39.1%. Cost discipline underpinned the rebound: distribution and selling costs fell 15.4% to HK$49.83 million, while administrative expenses declined 11.1% to HK$58.45 million. Finance costs eased 6.7% to HK$3.02 million.

The bottom-line turnaround was partly offset by a HK$1.75 million net other loss, compared with a HK$25.52 million gain in the prior-year period, reflecting a swing to foreign-exchange losses and the absence of prior gains from asset disposals. Income tax expense was negligible at HK$8,000.

Liquidity remained tight. At 30 June 2026, cash and bank balances stood at HK$21.69 million against total lease liabilities, director loans and bank borrowings of HK$194.74 million, of which HK$118.32 million are current. Operating activities consumed HK$20.71 million (1H 2025: HK$26.29 million outflow). The board highlighted “material uncertainty” over going-concern status, citing reliance on facility renewals and continued shareholder support; major shareholder and director Mr. Cheng had advanced HK$83.77 million by period-end and has agreed not to demand repayment until liquidity permits.

Total assets were broadly stable at HK$639.38 million, while total liabilities edged down to HK$347.58 million, leaving net assets at HK$291.80 million (31 December 2025: HK$287.19 million). The current ratio was 1.61 (end-2025: 1.63); the quick ratio remained at roughly 0.65.

No interim dividend was declared (1H 2025: HK1 cent). Management reiterated its focus on cost control, automation investment and securing additional orders, while cautioning that geopolitical and macroeconomic risks could affect demand and funding conditions.

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