Matrix Holdings Limited released its audited results for the year ended 31 December 2025.
• Revenue increased 5.8% year-on-year to HK$483.22 million, driven mainly by stronger sales of toys and lighting products in the US market.
• Gross profit fell 14.0% to HK$131.02 million as inventory write-downs of HK$23.00 million reduced the gross margin to 27.1% (2024: 33.4%).
• Distribution and selling expenses declined 19.2% to HK$146.23 million and administrative expenses dropped 17.3% to HK$132.44 million following cost-control initiatives.
• Operating loss narrowed to HK$155.89 million (2024: HK$271.48 million). After finance costs of HK$6.28 million and tax of HK$0.98 million, the Group posted a net loss attributable to shareholders of HK$163.60 million, a 45.2% improvement from the prior year’s HK$298.57 million loss.
• Basic and diluted loss per share improved to HK21.6 cents (2024: HK39.5 cents).
• Other gains and losses swung to a HK$36.81 million gain, primarily from net foreign-exchange gains and a HK$18.34 million profit on asset disposals.
• Total assets stood at HK$637.10 million, while total liabilities rose to HK$349.90 million. Net assets declined 41.9% to HK$287.19 million.
• Cash and bank balances were HK$54.27 million against combined lease liabilities, director loans and other borrowings of HK$199.18 million (HK$113.26 million classified as current).
• The auditor drew attention to a material uncertainty related to going concern, citing recurring losses, negative operating cash flow and significant short-term liabilities. Management’s mitigation plans include cost controls, new banking facilities of about HK$11 million (HK$5 million already drawn in February 2026), shareholder loan support totalling HK$84.59 million, and targeted revenue growth from incremental orders.
• Capital expenditure during the year totaled HK$16.69 million; outstanding capital commitments were HK$1.38 million at year-end.
• An interim dividend of HK1.0 cent per share (paid earlier in 2025) was the only distribution for the year. The board will not recommend a final dividend.
• The annual general meeting is scheduled for 22 May 2026; the share register will be closed from 15 May to 22 May 2026 for entitlement to attend and vote.
Operationally, the Group reported improved sales of Original Design Manufacturing lines such as “CAT” and “SpongeBob SquarePants,” as well as Original Brand products “Fart Ninjas,” “Might Fleet” and “Gazillion.” Management highlighted ongoing investments in automation at its Vietnam plant and continued exploration of property development opportunities in Danang City, Vietnam.
The board remains cautious amid geopolitical tensions, tariff risks and a challenging consumer environment, focusing on product innovation, cost optimisation and diversification to sustain operations in 2026.