Matrix Holdings Limited provided unaudited consolidated earnings guidance for the six months ended 30 June 2023. For the period, the company expects a decrease in the net profit of the Group attributable to the owners of the Company for the Period by not less than 99% of approximately HKD 72.0 million compared with the corresponding period of last year. The Board considers that the decrease in the net profit of the Group attributable to the owners of the Company for the Period was mainly due to decrease in revenue for the Period as compared to the corresponding period of last year as high inflation and fears of lagging economic growth have deterred consumer spending and led to slow down of economic growth in early 2023.

The integration of advanced automation within the Group's production process has resulted in a shift in the structure and design of products. This alteration has consequently led to adjustments in the Group's customer portfolio. Additionally, it is worth noting that decrease in sales could have been attributed to the presence of high inventory levels among the customers, which were influenced by the challenges posed by the poor global economy.

Therefore, customers generally adopted a cautious approach in inventory management and placing orders in the first half of 2023.