Financial Performance - Total revenue for 2021 was HKD 5,385 million, an increase of 18% from HKD 4,545 million in 2020[4] - Local service revenue rose to HKD 2,980 million, reflecting a 2% growth compared to HKD 2,917 million in the previous year[4] - EBITDA decreased by 12% to HKD 1,477 million from HKD 1,672 million in 2020[4] - EBIT fell significantly by 67% to HKD 132 million, down from HKD 403 million in 2020[4] - Shareholders' profit attributable dropped to HKD 4 million, a 99% decline from HKD 361 million in the prior year[4] - Earnings per share plummeted to HKD 0.08, a decrease of 99% from HKD 7.49 in 2020[4] - Total revenue for 2021 increased by HKD 840 million or 18% to HKD 5.385 billion, driven by a 70% growth in hardware and other product revenues and a 35% increase in enterprise solutions revenue[13] - EBITDA decreased by HKD 195 million or 12% compared to the previous year, primarily due to increased network costs from investments in advanced 5G technology and network expansion[13] - EBIT fell by HKD 271 million or 67%, impacted by a 6% increase in depreciation and amortization due to network expansion and 5G rollout[13] - Net profit attributable to shareholders dropped by 99% to HKD 4 million, with earnings per share at HKD 0.08, largely due to the factors affecting EBITDA and EBIT[13] Dividends and Shareholder Returns - The company declared a special interim dividend of HKD 0.198 per share, with an annual dividend of HKD 0.2729 per share, representing a 264% increase from HKD 0.749 in 2020[4] - The board proposed a final dividend of HKD 0.0521 per share, maintaining the same level as the previous year, resulting in a total annual dividend of HKD 0.2729 per share, an increase of 264% compared to HKD 0.0749 in 2020[14] - The company distributed a special interim dividend of HKD 954 million in September 2021, reducing cash and bank balances from HKD 5,416 million to HKD 3,975 million by year-end[34] Customer Metrics - Total customer base in Hong Kong and Macau decreased to approximately 3.2 million as of December 31, 2021, down from 3.3 million a year earlier[13] - Monthly postpaid customer churn rate remained healthy at 1.2%, while local postpaid service net ARPU increased by 4% to HKD 159[13] - The total number of customers as of December 31, 2021, was approximately 3.2 million, a decrease of 2% from 3.3 million in 2020[36] - The number of prepaid customers decreased by 5% to 1.76 million in 2021, down from 1.85 million in 2020[35] - The monthly churn rate for postpaid customers was 1.2%, slightly up from 1.1% in 2020, indicating a healthy retention level[36] Investments and Technology - The company has invested over HKD 30 billion since 2019 to expand its mobile network and develop 5G technology[9] - 3 Hong Kong has invested over HKD 3 billion since 2019 to expand its mobile and 5G networks, demonstrating its commitment to reliable network services and establishing leadership in 5G services[21] - The number of 5G base stations increased by 43% since Q3 2020, achieving 99% population coverage for 5G networks by the end of 2021[21] - 3 Hong Kong launched 5G broadband services in 2021, providing flexible, plug-and-play solutions without the need for wired installations[23] - The company plans to continue driving digitalization and introduce innovative solutions, with a focus on expanding its 5G broadband services for homes and businesses[15] Market and Competitive Landscape - The group faces intense competition in its operating market, which may lead to pricing pressure and affect customer acquisition and retention costs, ultimately impacting service revenue and financial performance[55] - Rapid technological advancements in the telecommunications industry may intensify competition, and failure to develop or acquire new technologies could harm customer relationships and market position[56] Regulatory and Compliance Risks - Regulatory changes and government policies may pose risks to the group's financial condition and operational performance, including changes in tax regulations and telecommunications laws[61] - The group is subject to scrutiny by regulatory authorities, and any adverse actions could significantly impact its financial condition and operational performance[63] - The company is committed to maintaining compliance with all regulatory requirements related to shareholder disclosures and related party transactions[109] Corporate Governance - The company has a strong focus on corporate governance, with independent directors actively participating in key committees[81] - The board consists of nine members, including a non-executive chairman and three independent non-executive directors, meeting the one-third independence requirement[128] - The company has established a trust structure involving Li Ka-Shing, which influences the ownership of shares but does not affect the operational control of the company[113] - The company has adopted a set of corporate governance principles emphasizing a strong board, effective risk management, and transparent communication with stakeholders[123] Sustainability and Social Responsibility - The company is committed to sustainable development and seeks to understand its business impact on the environment while maximizing long-term value for stakeholders[15] - A new sustainability initiative has been launched, targeting a 30% reduction in carbon emissions by 2025[73] - The group made charitable donations of approximately HKD 1.8 million in the year, down from HKD 2.7 million in 2020[100] Future Outlook - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion[74] - The company is investing $500 million in research and development for new technologies aimed at enhancing customer experience[75] - Market expansion efforts include entering two new countries in Southeast Asia, expected to contribute an additional $200 million in revenue[76] Risk Management - The company has established an Enterprise Risk Management (ERM) framework to systematically identify, assess, and manage risks, including sustainability risks, across all business levels[160] - The audit committee reviewed the effectiveness of the group's risk management and internal control systems, including sustainable development risks[154] - The internal audit department is responsible for assessing the effectiveness of the group's risk management and internal control systems, reporting directly to the audit committee[178]

Financial Performance - Total revenue for the first half of 2021 was HKD 2,565 million, a 29% increase compared to HKD 1,982 million in the same period of 2020[5] - EBITDA for the first half of 2021 decreased by 4% to HKD 747 million, down from HKD 778 million in the previous year[5] - The total EBIT dropped by 37% to HKD 92 million, compared to HKD 147 million in the same period last year[5] - Shareholders' profit attributable to the company was HKD 31 million, a 79% decrease from HKD 146 million year-on-year[5] - Local service revenue increased by 4% to HKD 1,503 million, up from HKD 1,443 million year-on-year[5] - Hardware revenue surged by 194% to HKD 935 million, driven by a significant increase in net mobile phone sales, which rose by 355% to HKD 769 million[10] - The net profit attributable to shareholders for the same period was HKD 31 million, a decrease of 78.8% from HKD 146 million in 2020[53] - Basic and diluted earnings per share were HKD 0.64, down from HKD 3.03 in the previous year[53] Customer Metrics - The total number of customers in Hong Kong and Macau decreased by 2% to approximately 3.2 million as of June 30, 2021[7] - Monthly postpaid customer churn rate remained stable at 1.1%, consistent with the first half of 2020[7] - The total number of customers as of June 30, 2021, was approximately 3.23 million, a decrease of 2% from 3.31 million in the same period of 2020[12] - The net ARPU for postpaid customers increased by 1% to HKD 171, while the local net ARPU rose by 7% to HKD 160, driven by increased contributions from the enterprise segment and more customers upgrading to 5G services[12] Dividends - The board declared an interim dividend of HKD 2.28 per share, unchanged from the previous year, and a special interim dividend of HKD 19.80 per share[8] - The total dividend for the first half of 2021 was HKD 0.2208 per share, amounting to HKD 1.064 billion[9] - The interim dividend per share was HKD 0.0228, totaling HKD 110 million, and a special interim dividend of HKD 0.198, totaling HKD 954 million, resulting in a total dividend of HKD 1,064 million for the six months ended June 30, 2021[69] Financial Position - The company maintained a strong financial position with total cash reserves of HKD 5.106 billion as of June 30, 2021[9] - As of June 30, 2021, the group's cash balance was HKD 5.106 billion, down from HKD 5.251 billion at the end of 2020[13][20] - The company’s total equity decreased to HKD 11,827 million from HKD 12,047 million at the end of 2020[54] - Total liabilities were HKD 7,269 million, with current liabilities at HKD 6,108 million[54] Operational Costs - Operating expenses rose by 2% to HKD 936 million, primarily due to network expansion and the adoption of 5G technology[11] - Employee costs for the first half of 2021 totaled HKD 160 million, slightly down from HKD 165 million in the first half of 2020[27] - The group incurred a total depreciation and amortization expense of HKD 655 million for the six months ended June 30, 2021, compared to HKD 631 million in 2020[87] Investments and Capital Expenditures - Capital expenditures related to property, plant, and equipment increased by 209% to HKD 324 million, accounting for 20% of service revenue, mainly due to investments in 5G infrastructure[14] - The cost of property, plant, and equipment purchased during the period was HKD 324 million, significantly higher than HKD 105 million for the same period in 2020[70] Corporate Governance and Sustainability - The group established a sustainability committee at the board level in 2020 to enhance corporate governance and reporting frameworks related to sustainability initiatives[28] - The sustainability framework is built on four pillars: environment, social, governance, and sustainable business models, evolving from the previous four pillars established in the 2020 annual report[28] - The company emphasizes a high level of corporate governance to enhance shareholder value and protect stakeholder interests[46] - The company has complied with all provisions of the corporate governance code during the six months ending June 30, 2021[47] Market Outlook - The company is optimistic about returning to a stable operational performance as the economy recovers post-pandemic[9] - The company is focusing on expanding its market presence and enhancing its product offerings in the telecommunications sector[50] COVID-19 Impact - The company has implemented measures to mitigate the impact of the COVID-19 pandemic on its business, particularly affecting roaming revenues since Q2 2020[58] - The company continues to monitor the developments related to COVID-19 and assess its impact on financial performance and operational results[58] Miscellaneous - The group provided performance, financial, and other guarantees totaling HKD 512 million as of June 30, 2021, an increase from HKD 330 million at the end of 2020[23] - The group confirmed a spectrum usage fee of approximately HKD 1.54 billion for the 1800 MHz band, payable in 15 annual installments starting from September 2021[83] - The independent auditor's review report for the interim financial statements will be included in the interim report for the six months ending June 30, 2021[29]

Financial Performance - Revenue for 2018 was HKD 7,912 million, an increase of 17% compared to HKD 6,752 million in 2017[4] - Hardware revenue rose by 47% to HKD 4,250 million, while service revenue decreased by 5% to HKD 3,662 million[4] - EBITDA for 2018 was HKD 1,157 million, down 9% from HKD 1,267 million in 2017[4] - Shareholders' profit from recurring operations increased by 82% to HKD 404 million, compared to HKD 222 million in 2017[4] - The company declared a special interim dividend of HKD 0.80 per share, not applicable in the previous year[4] - Total annual dividend per share increased by 921% to HKD 86.30 from HKD 8.45 in 2017[4] - Profit attributable to shareholders was HKD 4.04 billion, a 92% decrease compared to HKD 47.66 billion in 2017[36] - EBITDA decreased by 9% to HKD 11.57 billion in 2018, down from HKD 12.67 billion in 2017[36] - Operating expenses and employee costs decreased by 3% to HKD 2.627 billion, reflecting improved efficiency and cost control[74] - Capital expenditures (excluding spectrum licenses) were HKD 522 million, a slight decrease of 2% from HKD 533 million in 2017[65] Customer Metrics - The total number of customers in Hong Kong and Macau remained stable at approximately 3.3 million, with 46% being postpaid customers[37] - The postpaid customer churn rate remained stable at 1.3% for both 2017 and 2018[37] - The overall postpaid ARPU decreased by 5% from HKD 230 in 2017 to HKD 219 in 2018[37] - Total customer base as of December 31, 2018, was approximately 3.3 million, with postpaid customers accounting for 46% of the total[84] - Monthly churn rate for postpaid customers remained stable at 1.3%[84] - Postpaid ARPU decreased by 5% from HKD 230 in 2017 to HKD 219 in 2018[84] Digital Transformation and Innovation - The company is focused on digital transformation projects to enhance operational efficiency and customer experience[35] - New innovative local and roaming products and services were launched to improve overall customer experience[35] - The digital transformation project aims to streamline and automate internal business processes, focusing on customer relationship management and data analysis to improve customer experience and operational efficiency[47] - The company is investing $500 million in research and development for new technologies aimed at enhancing customer experience and operational efficiency[161] - The company is investing approximately $200 million in research and development for new technologies aimed at enhancing user experience[172] Network and Infrastructure - The group acquired spectrum resources in the 900 MHz and 1800 MHz bands for a total cost of HKD 20.40 billion, marking a significant investment in network infrastructure to enhance mobile communication services amidst increasing data demand[54] - The group is committed to enhancing network efficiency by reorganizing its spectrum, having completed the restructuring of the 2100 MHz band to improve 4.5G network capacity and coverage[53] - The company has completed outdoor 5G network testing in the 3.5 GHz and 28 GHz bands, becoming the first operator in Hong Kong to conduct outdoor live broadcasts using 5G technology[54] - The narrowband IoT network has been expanded across Hong Kong since its launch in 2017, enabling various commercial applications and partnerships with technology firms to develop IoT solutions[51] Environmental and Social Responsibility - Total greenhouse gas emissions decreased from 69,273 metric tons CO2 equivalent in 2017 to 61,008 metric tons CO2 equivalent in 2018, representing a reduction of approximately 12.5%[155] - Electricity consumption reduced by 12% from 125,791,648 kWh in 2017 to 111,277,682 kWh in 2018[144] - The intensity of total greenhouse gas emissions per thousand HKD revenue improved from 0.010 metric tons CO2 equivalent in 2017 to 0.008 metric tons CO2 equivalent in 2018, a decrease of 20%[155] - Total energy consumption intensity decreased from 18.7 kWh per thousand HKD revenue in 2017 to 14.1 kWh per thousand HKD revenue in 2018, a reduction of approximately 24.6%[155] - Paper consumption decreased from 72 metric tons in 2017 to 60 metric tons in 2018, a reduction of approximately 16.7%[155] - The amount of recycled paper increased significantly from 18 metric tons in 2017 to 40 metric tons in 2018, an increase of 122.2%[155] - Water consumption decreased from 25,181 cubic meters in 2017 to 6,791 cubic meters in 2018, a reduction of approximately 73%[155] - The company donated approximately HKD 1.4 million in cash and in-kind contributions to community projects in 2018, with HKD 1.3 million allocated to charitable organizations[151] Future Outlook and Strategic Initiatives - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[160] - Market expansion efforts include entering three new countries in Southeast Asia, expected to contribute an additional $200 million in revenue by the end of the next fiscal year[162] - The company has completed a strategic acquisition of a local telecom firm for $1 billion, enhancing its market share and service offerings[163] - New product launches are anticipated to increase market penetration by 20%, with a focus on 5G services and IoT solutions[164] - The company aims to reduce operational costs by 5% through efficiency improvements and technology upgrades in the next year[158] Governance and Management - The group maintains ongoing communication with stakeholders, including employees and customers, to gather feedback and assess important areas of concern[121] - Effective talent management is crucial for long-term success, and the group aims to be an employer of choice through recruitment, training, and fostering an inclusive work environment[122] - The group employed a total of 1,180 full-time employees as of December 31, 2018, demonstrating a commitment to talent acquisition and retention in a competitive labor market[124] - The group received the "9th Asia's Best Employer Brand Award" in 2018, highlighting its dedication to talent retention and employee development[126] - The group emphasizes the importance of integrating environmental, social, and governance (ESG) principles into daily operations to enhance long-term value for shareholders[118] Risks and Challenges - The group faces significant competition in the telecommunications market, which may impact service revenue and customer retention[104] - The group’s financial performance is influenced by the economic conditions in Hong Kong, which could affect customer consumption and usage[103] - The rapid development of technology in the telecommunications industry increases competition, and failure to develop or acquire new technologies may lead to loss of customers and market share, adversely affecting profitability[109] - Key network elements are critical for operations, and any damage to these elements could significantly impact the ability to provide mobile telecommunications services to most customers[110] - The group has not experienced severe structural damage from natural disasters, but future occurrences could adversely affect financial condition and operational performance[111]