Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Financial Performance - SmarTone recorded a profit attributable to shareholders of HKD 256 million, a year-on-year increase of 4% excluding one-off items[23]. - Total revenue for the group was HKD 3,492,000,000, up 3% from HKD 3,390,000,000 in the same period last year, primarily due to increased sales of mobile phones and accessories[35]. - Shareholder profit attributable to the group was HKD 257,000,000, a 4% increase from HKD 246,000,000 in the first half of 2023/24[35]. - Operating profit for the same period was HKD 419,512,000, up 16.2% from HKD 360,835,000 year-over-year[105]. - Net profit attributable to shareholders for the six months was HKD 256,658,000, representing an increase of 4.3% from HKD 245,792,000 in the previous year[105]. - Basic and diluted earnings per share for the period were both HKD 23.3, compared to HKD 22.2 in the prior year, reflecting a growth of 4.9%[105]. - The company reported a profit of $256,658 for the six months ended December 31, 2024, compared to the previous period's profit[115]. - Profit before tax was HKD 256,658,000, compared to HKD 245,792,000 in 2023, reflecting a growth of 4.0%[146]. Customer Base and Services - The customer base has increased to 2,870,000, with a 40% penetration rate for 5G services, and the ARPU for 5G services is twice that of 4G services[23]. - Over 50% of users are currently utilizing SmarTone's roaming services, reflecting significant business growth in this area[24]. - The 5G home broadband service has seen an EBITDA growth of 20% year-on-year, driven by faster speeds, competitive pricing, and easy installation[24]. - SmarTone has launched the Home 5G x Wi-Fi 7 broadband plan, enhancing customer experience with superior Wi-Fi connectivity[17]. - The company has implemented a 24-hour free overseas hotline to support customers during their roaming periods[24]. Network and Technology - SmarTone's 5G network is powered by AI, optimizing resource allocation and ensuring excellent customer experience even in high-traffic areas[7]. - The company has successfully launched the latest 5G-Advanced network technologies, including network slicing and private 5G networks, in collaboration with major partners[25]. - The company has adopted 3.5GHz and 4.9GHz "5G golden spectrum" in key locations to ensure seamless network experience during major events[9]. - The average spectrum resources per user remain the highest in Hong Kong, ensuring optimal customer experience[28]. - The company is actively investing in world-class 5G networks, with a focus on enhancing coverage in rural and remote areas[31]. Financial Management and Investments - The cost of services provided decreased by HKD 13,000,000 or 5% to HKD 227,000,000, compared to HKD 240,000,000 in the first half of 2023/24, mainly due to improved gross margins in enterprise application solutions[35]. - The company plans to continue investing in new revenue sources to meet customer needs despite market challenges[30]. - The company recorded an expected credit loss of $50,000,000, reflecting changes in credit risk of financial assets measured at amortized cost[37]. - The company had cash and bank balances of $1,650,000,000 as of December 31, 2024, compared to $1,577,000,000 on June 30, 2024[38]. - The net cash generated from operating activities during the period was $968,000,000[38]. Corporate Governance and Leadership - The company has a diverse board with members having extensive experience in finance, technology, and corporate governance[60][62]. - The company is committed to employee development through diverse training and career advancement opportunities, enhancing professional skills and personal growth[95]. - Zou Jin Gen has been instrumental in leading the company's technology innovation and operational strategies since joining in 1993[58]. - Liu Ruo Hong has held various leadership roles in business development and corporate strategy prior to becoming CEO in February 2023[55]. - The company has complied with the corporate governance code, with the exception of two independent non-executive directors who were unable to attend the annual general meeting[184]. Environmental and Community Initiatives - SmarTone achieved a 36% overall energy efficiency improvement through advanced technology, smart cooling, and AI-driven network optimization, resulting in a reduction of 3,200 tons of CO2 emissions[84][87]. - The company has initiated a recycling program to reduce electronic waste, encouraging customers to recycle old devices and participate in environmental initiatives[92]. - SmarTone is actively involved in community support, including programs for elderly visits and smartphone training workshops to enhance convenience for seniors[93]. Shareholder Information - The company will pay an interim dividend of HKD 0.145 per share, consistent with last year[29]. - The interim dividend declared was 14.5 cents per share, consistent with the previous year[147]. - The company has engaged in share buybacks, repurchasing shares worth $1,410 during the period[115]. - The major shareholder, New World Development Company Limited, holds 806,362,555 shares, representing 73.18% of the voting rights[180].

Financial Performance - Shareholders' profit attributable to the company was HK$256,000,000, representing a 4% year-on-year increase, excluding one-off items[4] - The group reported a profit attributable to shareholders of $257,000,000, a 4% increase from $246,000,000 in the first half of 2023/24, excluding one-off items[15] - Profit attributable to shareholders was $256,658,000, up from $245,792,000, marking a growth of 4.03%[30] - Operating profit for the period was $419,512,000, representing a 16.24% increase from $360,835,000 in the previous year[30] - The actual tax expense was $97,000,000, with an effective tax rate of 27.5%, down from 28.7% in the first half of 2023/24[17] Revenue Growth - Total revenue for the group was $3,492,000,000, up 3% from $3,390,000,000 year-on-year, primarily due to increased sales of mobile phones and accessories[15] - For the six months ended December 31, 2024, total revenue was $3,491,538,000, an increase of 2.94% compared to $3,390,495,000 in the same period of 2023[30] - Revenue from mobile communication services was $2,303,422,000, slightly down from $2,303,463,000 in the previous year, indicating a decrease of about 0.002%[45] - Revenue from mobile phone and accessories sales increased to $1,188,116,000 from $1,087,032,000, reflecting a growth of approximately 9.3%[45] Cost Management - The total operating cost decreased by 2% year-on-year, allowing for more resources to be allocated to network upgrades and customer experience[7] - The cost of services provided decreased by $13,000,000 or 5% to $227,000,000, compared to $240,000,000 in the first half of 2023/24, attributed to improved gross margins in enterprise application solutions[15] - Employee costs increased by 1% to $357,000,000, reflecting annual salary adjustments, although the increase was offset by a reduction in employee numbers[15] Dividends and Shareholder Returns - The company proposed an interim dividend of HK$0.145 per share, consistent with the previous year[9] - The interim dividend declared for the six months ended December 31, 2024, is 14.5 cents per share, consistent with 2023[63] - The total amount of interim dividend payable is approximately $159,778,000, slightly down from $160,004,000 in 2023[63] Customer and Market Development - Customer base grew by 8.5% to 2,870,000, with a 40% penetration rate for 5G services[4] - Revenue from 5G home broadband services increased by 18%, while EBITDA rose by 20%[4] - Roaming revenue grew by 6% due to increased usage of international roaming products[4] - The enterprise application solutions business saw a 13% increase in profit contribution compared to the same period last year[6] Investments and Future Outlook - The company continues to invest in network performance and customer service to meet evolving customer needs[10] - The group plans to continue investing in network quality and coverage, particularly in remote areas, supported by government initiatives[11] - New AI applications are expected to emerge in the coming months, supported by the company's 5G network[10] - New workshops will be launched in the coming months to help users, both businesses and consumers, leverage technology for productivity and security[12] Financial Position - The group maintained a strong financial position with total equity of $5,248,000,000 as of December 31, 2024, including share capital of $110,000,000 and reserves of $5,138,000,000[19] - Cash and bank balances amounted to $1,650,000,000 as of December 31, 2024, compared to $1,577,000,000 on June 30, 2024[19] - Total non-current assets decreased to $7,767,682,000 from $8,152,969,000, a decline of 4.73%[34] - Total current assets increased to $3,173,084,000 from $3,025,306,000, reflecting a growth of 4.90%[34] - Total non-current liabilities decreased to $2,870,223,000 from $3,048,721,000, a reduction of 5.87%[36] - Total equity increased to $5,247,688,000 from $5,185,649,000, showing a growth of 1.20%[36] Governance and Compliance - The company’s audit committee reviewed the interim financial statements and found the accounting policies appropriate and consistent with industry standards[66] - The company is committed to maintaining high standards of corporate governance, adhering to the corporate governance code[69] - The interim financial statements for the six months ended December 31, 2024, have been reviewed by external auditors[67] Credit and Receivables - The group recorded an expected credit loss of $50,000,000, reflecting changes in credit risk of financial assets measured at amortized cost[17] - The accounts receivable as of December 31, 2024, amount to $435,479,000, an increase from $410,315,000 as of June 30, 2024[61] - The impairment loss on accounts receivable for the six months ended December 31, 2024, is $2,020,000, compared to $1,846,000 in 2023[61] - The accounts payable as of December 31, 2024, total $353,941,000, a decrease from $366,208,000 as of June 30, 2024[62] Share Repurchase - The company repurchased 345,000 shares during the six months ended December 31, 2024, at a total cost of $1,410,000[65] - The highest repurchase price per share was $4.19, while the lowest was $3.94[65]

Financial Performance - For the fiscal year ending June 30, 2024, the company reported a total revenue of HKD 6,221 million, a decrease of 7.99% from HKD 6,763 million in the previous year[7]. - The basic earnings per share increased to HKD 0.43 from HKD 0.24, reflecting an increase of 79.17%[7]. - The company's total equity attributable to shareholders increased to HKD 5,186 million from HKD 5,084 million, reflecting a growth of 2.01%[9]. - The company reported a profit attributable to shareholders of HK$470,000,000, representing a 75% increase compared to the previous year[27]. - Total revenue for the group is HKD 6.221 billion, an 8% decrease from HKD 6.763 billion last year, primarily due to a decline in mobile phone and accessory sales[34]. - Service revenue slightly decreased by 1% to HKD 4.509 billion, while service revenue excluding prepaid, mobile virtual network operator, and SMS business grew by 2%[34]. - The group maintains a strong financial position with total equity of HKD 5.186 billion as of June 30, 2024[37]. - The group generated operating cash flow of HKD 2.162 billion during the year, compared to HKD 2.254 billion in the previous year[37]. - The proposed final dividend is HKD 0.175 per share, totaling HKD 0.32 per share for the year[30]. - The company's distributable reserves amounted to $747,268,000, a decrease from $1,117,995,000 as of June 30, 2023[148]. Operational Highlights - The net cash inflow from operating activities was HKD 2,162 million, a decrease of 4.08% from HKD 2,254 million in the previous year[9]. - The company has fully upgraded its network to 5G-Advanced, supporting smart dynamic network slicing and AI resource management, enhancing service reliability for enterprise customers[11]. - The penetration rate of 5G service customers has risen to approximately 40%, with the ARPU for 5G services reaching twice that of 4G services[27]. - Revenue and EBITDA from the 5G home broadband service grew by 33% and 70% respectively compared to the previous year[27]. - The company has invested in 5G network construction at key locations, including the Hong Kong International Airport and major railway stations, to support government economic development plans[11]. - The company plans to enhance network coverage in all major country parks to improve safety and emergency response efficiency[11]. - The company has intercepted over 400 million nuisance calls since the launch of its "Call Guard" service, enhancing customer privacy and security[24]. - The new CARE mobile application features an upgraded personalized interface, improving customer experience and account management[25]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[45]. - The board consists of three executive directors, five non-executive directors, and six independent non-executive directors as of June 30, 2024[48]. - The company has arranged appropriate liability insurance for its directors to cover responsibilities arising from corporate activities[51]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[51]. - The company held four board meetings and one annual general meeting during the fiscal year ending June 30, 2024, with all executive directors attending all meetings[56]. - The chairman and CEO positions are held by different individuals to enhance independence and accountability[53]. - The remuneration committee reviewed executive directors' compensation, including performance bonuses, during the fiscal year ending June 30, 2024[61]. - All directors are required to participate in ongoing professional development to ensure they are well-informed about the company's operations and governance policies[57]. Risk Management and Compliance - The group has established a risk management and internal control system, which includes a comprehensive organizational structure and authorization system to ensure compliance with laws and regulations[71]. - An independent internal audit team consisting of five qualified professionals is in place, reporting directly to the audit committee and CEO, ensuring the effectiveness of risk management and internal controls[72]. - The board has conducted an annual review of the risk management and internal control system, confirming its appropriateness and effectiveness for the fiscal year ending June 30, 2024[72]. - The company has implemented various policies to ensure compliance with anti-corruption laws, with no significant legal issues reported during the review period[116][118]. - The company has established a whistleblowing policy to allow employees and external parties to report misconduct confidentially[116]. Environmental and Social Responsibility - The company aims to reduce greenhouse gas emissions and total energy consumption density annually, promoting environmental awareness and eco-friendly management practices[92]. - SmarTone achieved a 25% improvement in energy efficiency by modernizing base stations with the latest software and hardware[93]. - The company implemented AI-based network solutions that further enhanced energy efficiency by 11%, resulting in a total energy efficiency improvement of 36%[93]. - SmarTone partnered with HKBR to recycle over 90% of discarded lead-acid batteries from exchange and data centers, minimizing hazardous waste[93]. - The company promotes a healthy work environment through various employee wellness programs and flexible work arrangements[100]. - SmarTone's volunteer team engages in community service activities, including workshops for seniors on smartphone usage and distributing meals to vulnerable groups[125][126][127]. Employee and Training Initiatives - The total employee costs for the year ending June 30, 2024, were HKD 713 million, down from HKD 731 million in 2022/23[43]. - As of June 30, 2024, there were 1,756 full-time employees, a decrease from 1,830 employees as of June 30, 2023[43]. - The number of trained employees decreased to 818 for the year ending June 30, 2024, down from 1,034, indicating a 20.9% decline in training participation[135]. - The average training hours per ordinary employee decreased to 10.63 hours for the year ending June 30, 2024, compared to 16.07 hours the previous year, a reduction of 33.9%[135]. - The company actively engages in employee development through various interest classes to foster curiosity and personal growth[105]. Shareholder Engagement - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting, which must be conducted in physical format[77]. - Shareholders can submit written inquiries to the board, ensuring transparency and communication between shareholders and management[78]. - The company has revised its articles of association to comply with the latest legal and regulatory requirements, allowing for physical, electronic, or hybrid meetings for shareholder meetings[81]. - The company is committed to providing stable and sustainable returns to shareholders, with the board considering the group's financial performance and future prospects when determining dividend amounts[83].

Financial Performance - Shareholders' profit attributable to the company reached $470,000,000, an increase of 75% compared to last year[2] - The group reported a net profit attributable to shareholders of HKD 470,000,000, compared to HKD 269,000,000 last year, after accounting for expected credit losses of HKD 201,000,000[10] - Net profit attributable to shareholders for the year was $470,126, up from $268,846 in 2023, representing an increase of approximately 74.6%[22] - Basic and diluted earnings per share for the year were both 42.6 cents, compared to 24.3 cents in 2023, marking an increase of 75%[21] - The company's profit before tax for 2024 was $663,176,000, an increase from $453,383,000 in 2023, representing a growth of approximately 46.2%[35] - Total tax expense for 2024 was $193,050,000, compared to $184,537,000 in 2023, indicating an increase of 4.1%[35] Revenue and Sales - Service revenue grew by 2% after excluding income from virtual network operators, SMS, and prepaid services[2] - The group's total revenue for the year was HKD 6,221,000,000, an 8% decrease from HKD 6,763,000,000 last year, primarily due to a decline in mobile phone and accessory sales[10] - Total revenue for 2024 was HKD 6,221,251, a decrease of 8.0% from HKD 6,762,884 in 2023[30] - Revenue from mobile communication services was HKD 4,508,713, while mobile phone and accessories sales generated HKD 1,712,538 in 2024[30] - Mobile phone and accessories sales decreased significantly to $1,712,538 from $2,216,710 in 2023, reflecting a decline of about 22.7%[21] Customer and Market Growth - Customer base increased to 2,710,000, with a 5G service penetration rate approaching 40%[2] - Roaming revenue increased by 44%, with consumer market overseas roaming income recovering to 141% of pre-pandemic levels as of June 2024[2] - The 5G home broadband service has become a core growth driver, with revenue and EBITDA increasing by 33% and 70%, respectively[4] - The company is focusing on enhancing customer experience in roaming services, with roaming service penetration reaching double the pre-pandemic level[4] Dividends and Shareholder Returns - The company plans to pay a final dividend of 17.5 cents per share, totaling 32.0 cents for the fiscal year, consistent with the previous year[2] - The board proposed a final dividend of HKD 0.175 per share, totaling HKD 0.32 per share for the year[7] - The company proposed a final dividend of 17.5 cents per share for 2024, maintaining the same level as in 2023, with total dividends for the year amounting to 32.0 cents per share[46] Operational Efficiency and Costs - The cost of providing services increased by 5% to HKD 410,000,000, consistent with revenue growth in roaming and enterprise application services[10] - Total employee costs for the year were $713,000,000, a decrease from $731,000,000 in 2023, reflecting a decline of about 2.5%[19] - Network costs increased to HKD 568,023 in 2024 from HKD 533,434 in 2023, representing a rise of 6.5%[33] Investments and Infrastructure - The company is actively investing in network infrastructure to extend coverage to major parks and improve emergency response capabilities[5] - The group plans to continue investing in 5G home broadband services and enterprise application solutions to enhance performance[7] Financial Position and Assets - The group maintained a strong financial position with total equity of HKD 5,186,000,000 as of June 30, 2024[12] - Cash and bank balances amounted to HKD 1,577,000,000 as of June 30, 2024, up from HKD 1,155,000,000 the previous year[13] - Total non-current assets as of June 30, 2024, amounted to $8,152,969, a decrease from $8,496,421 in 2023, reflecting a decline of about 4.05%[23] - Total current assets increased to $3,025,306 from $2,402,522 in 2023, representing an increase of approximately 26%[23] Corporate Governance and Compliance - The audit committee reviewed the financial statements for the year ended June 30, 2024, and found the accounting policies appropriate and consistent with industry standards[51] - The company maintained effective risk management and internal control systems during the fiscal year[51] - The company adhered to the corporate governance code principles, with some exceptions regarding attendance at the annual general meeting[52] - The company is committed to high standards of corporate governance and will continue to monitor and review its practices[52] Share Repurchase - The company repurchased a total of 4,205,500 shares during the year ended June 30, 2024, at a total cost of $16,676,000[48] - The highest repurchase price per share was $4.10 in September 2023, while the lowest was $3.76 in April 2024[49] - The board believes that the share repurchase will enhance the company's earnings per share[50]

Financial Performance - The group reported a net profit attributable to shareholders of HKD 246 million for the first half of 2023/24, a decrease from HKD 256 million in the same period last year[20]. - Total revenue for the group was HKD 3.39 billion, down 11% from HKD 3.81 billion year-on-year, primarily due to a decline in mobile phone and accessory sales[20]. - Service revenue slightly decreased by 1% year-on-year, but excluding prepaid, mobile virtual network operator, and SMS business income, it showed a strong recovery with a growth of 3%[20]. - Operating profit for the period was HKD 360,835, a decrease of 7.8% compared to HKD 391,373 in the previous year[60]. - Profit attributable to shareholders for the period was HKD 245,792, down from HKD 255,832, representing a decline of 3.9%[61]. - Basic earnings per share for the period were 22.2 cents, compared to 23.1 cents in the same period last year[61]. - Total revenue for the six months ended December 31, 2023, was HKD 3,390,495, a decrease of 11% from HKD 3,809,011 in the same period of 2022[60]. - EBITDA for the six months ended December 31, 2023, was HKD 1,241,179, compared to HKD 1,279,065 for the same period in 2022, reflecting a decrease of about 3%[84][87]. Customer and Service Growth - Average revenue per user (ARPU) increased by 1% to HK$224, with total customer base reaching 2,650,000[14]. - 5G service customers now account for 38% of total customers, a 5% increase from December 2022[14]. - Roaming revenue surged by 64% year-on-year, recovering to 86% of pre-pandemic levels[14]. - The launch of SmarTone's home 5G broadband service has become a significant growth driver, offering faster speeds and lower costs[14]. - SmarTone's enterprise solutions business continues to show steady growth, with the SmartHome solution launched in December 2023[14]. - Service revenue grew by 3% excluding mobile virtual network operators (MVNOs) and SMS services[14]. Financial Position and Equity - The group maintained a strong financial position with total equity of HKD 5.13 billion as of December 31, 2023[22]. - Cash and bank balances amounted to HKD 1.05 billion as of December 31, 2023, down from HKD 1.16 billion on June 30, 2023[22]. - The group reported a total employee cost of HKD 353,000,000 for the period ending December 31, 2023, compared to HKD 361,000,000 for the first half of 2022/23, indicating a decrease of approximately 2.2%[29]. - Total equity rose from HKD 5,084,487,000 to HKD 5,128,181,000, an increase of approximately 1%[65]. Operational Efficiency and Investments - The company achieved a 36% overall energy efficiency improvement through modernization of base stations and AI network solutions[49]. - The company is committed to sustainable development and reducing energy consumption through advanced technology[49]. - The company has invested in enhancing its 5G network, including the installation of 850MHz 5G networks at railway stations[6]. - The company plans to enhance customer service and network experience while investing in advanced 5G infrastructure to support its vision of becoming a trusted digital life partner[17]. Shareholder and Dividend Information - The board declared an interim dividend of HKD 0.145 per share, consistent with the previous year[17]. - The interim dividend declared was 14.5 cents per share, consistent with the previous year, totaling $160,004,000 compared to $160,437,000 in 2022[100]. - Final dividend per share increased to 17.5 cents from 15.5 cents in the previous year, amounting to $193,117,000 compared to $171,325,000 in 2022[103]. Employee and Management Information - The group had 1,783 full-time employees, down from 1,830 employees as of June 30, 2023, reflecting a reduction of about 2.6%[29]. - The company continues to focus on employee training and development, providing both internal and external training opportunities[29]. - The total remuneration for the newly appointed CEO, Ms. Liu, from February 15, 2023, to June 30, 2023, amounted to HKD 2,174,000, including allowances and retirement plan contributions[33]. Risk Management and Compliance - The company faces foreign exchange risk primarily from receivables and payables denominated in USD, with some payables hedged through USD deposits[26]. - The financial risk management policies remained unchanged since the end of the previous fiscal year, addressing market, credit, and liquidity risks[78]. - The audit committee reviewed the interim financial statements for the six months ending December 31, 2023, and found the accounting policies appropriate and consistent with industry standards[144]. Stock Options and Share Repurchase - The company has adopted a share incentive plan to attract and retain suitable personnel, with no unvested incentive shares as of December 31, 2023[29]. - The company repurchased a total of 2,988,000 shares during the six-month period ending December 31, 2023, which were cancelled before the end of the reporting period[142]. - The company believes that the share repurchase will enhance earnings per share[143].

Financial Performance - The group's total revenue for the six months ended December 31, 2023, was $3,390,000,000, a decrease of 11% compared to $3,809,000,000 in the same period last year[9]. - Profit attributable to shareholders was $246,000,000, down from $256,000,000 in the first half of 2022/23[9]. - Service revenue showed a slight decline of 1%, while service revenue excluding prepaid, mobile virtual network operator, and SMS business grew by 3%[9]. - The company reported a profit of $245,792,000 for the six months ended December 31, 2023, a decrease of 3.9% compared to $255,832,000 for the same period in 2022[18]. - Total comprehensive income for the period was $248,103,000, slightly up from $246,947,000 in the previous year, indicating a growth of 0.6%[18]. - EBITDA for the six months ended December 31, 2023, was $1,241,179, compared to $1,279,065 in the same period of 2022, reflecting a decrease of about 3%[28]. - Operating profit for the six months ended December 31, 2023, was $360,835, down from $391,373 in the same period of 2022, indicating a decline of approximately 8%[28]. - Basic earnings per share for the six months ended December 31, 2023, was 22.2 cents, a decrease from 23.1 cents in the same period of 2022[34]. Revenue and Service Metrics - Service revenue increased by 3% excluding mobile virtual network operators, SMS, and prepaid services[2]. - Mobile service ARPU rose by 1% to HK$224, with customer base growing by 1% to 2,650,000; 5G service penetration reached 38%[3]. - Roaming revenue surged by 64%, recovering to 86% of pre-pandemic levels[3]. - The cost of services increased by $32,000,000 or 15% to $240,000,000, consistent with revenue growth in roaming and enterprise application services[9]. Dividends and Shareholder Returns - Interim dividend declared at HK$0.145 per share, consistent with the previous year[5]. - The interim dividend declared for the six months ended December 31, 2023, is 14.5 cents per share, unchanged from 2022, amounting to $160,004,000[38]. - The final dividend for the previous year was 17.5 cents per share, totaling $193,117,000 for the six months ended December 31, 2023, compared to $171,325,000 for the same period in 2022[39]. Assets and Liabilities - As of December 31, 2023, the group had total equity of $5,128,000,000, including share capital of $110,000,000 and reserves of $5,018,000,000[10]. - Cash and bank balances amounted to $1,048,000,000 as of December 31, 2023, down from $1,155,000,000 on June 30, 2023[10]. - The group had a total borrowing of $64,000,000 as of December 31, 2023, with no significant interest rate risk due to low borrowing levels[13]. - Non-current assets totaled $8,072,703,000 as of December 31, 2023, down from $8,496,421,000 on June 30, 2023, reflecting a decrease of 5.0%[19]. - Current assets decreased to $2,648,987,000 from $2,402,522,000, representing an increase of 10.2%[19]. - Total liabilities decreased from $5,110,456,000 on June 30, 2023, to $5,129,589,000, indicating a slight increase of 0.4%[20]. - The company's net assets increased to $5,128,181,000 as of December 31, 2023, compared to $5,084,487,000 on June 30, 2023, marking a growth of 0.9%[20]. - Total assets as of December 31, 2023, were $10,721,690, compared to $10,898,943 as of June 30, 2023, showing a decrease of about 1.6%[29]. - Total liabilities as of December 31, 2023, were $5,593,509, down from $5,814,456 as of June 30, 2023, indicating a reduction of approximately 3.8%[29]. Costs and Expenses - Employee costs and other operating expenses decreased by 2% and 3% to $353,000,000 and $487,000,000, respectively[9]. - Net financing costs decreased from $35,000,000 in the first half of 2022/23 to $16,000,000, primarily due to the full repayment of $1.4 billion guaranteed notes[9]. - Interest income from bank deposits for the six months ended December 31, 2023, was $35,071, compared to $41,968 in the same period of 2022, reflecting a decrease of about 16%[30]. - Interest expenses for the six months ended December 31, 2023, totaled $51,365, down from $77,376 in the same period of 2022, indicating a decline of approximately 34%[31]. - Income tax expense for the six months ended December 31, 2023, was $98,749, slightly down from $100,133 in the same period of 2022[33]. Strategic Initiatives - Significant investment in 5G network infrastructure, with spectrum fees paid to the government totaling approximately HK$270,000,000 in the past six months[7]. - Cumulative financial impact of non-deductible spectrum costs reached HK$538,000,000[7]. - The company aims to enhance customer service quality and maintain a stable network experience amid a challenging economic environment[5]. - New SmartHome solution launched in collaboration with Sun Hung Kai Properties, leveraging 5G technology[4]. - Continued focus on innovation and investment in digital applications to enhance customer experience[6]. - The company continues to focus on expanding its telecommunications services in Hong Kong and Macau, alongside selling mobile phones and accessories[21]. - The company is committed to ongoing research and development of new products and technologies to enhance market competitiveness[21]. Compliance and Governance - The company has adopted new accounting standards effective from July 1, 2023, which did not have a significant impact on the interim financial statements[23]. - The company’s audit committee reviewed the interim financial statements for the six months ended December 31, 2023, and found the accounting policies appropriate and consistent with industry standards[45]. - The company has complied with the corporate governance code, with some exceptions regarding attendance at the annual general meeting[47].

Financial Performance - Revenue for the year ended June 30, 2023, was HKD 6,763 million, a decrease of 3% compared to HKD 6,957 million in 2022[9] - Profit attributable to shareholders for the same period was HKD 269 million, down 36% from HKD 423 million in 2022[9] - Basic earnings per share decreased by 37% to HKD 0.24 from HKD 0.38 in the previous year[9] - Total assets as of June 30, 2023, were HKD 10,898 million, a decline of 13% from HKD 12,581 million in 2022[9] - Net cash inflow from operating activities increased by 11% to HKD 2,254 million from HKD 2,036 million in 2022[9] - The company reported a profit attributable to shareholders of HK$470,000,000, an increase of 4% compared to the previous year, despite facing intense market competition and spectrum costs peaking at HK$542,000,000[25] - Total revenue for the year was HK$6,763,000,000, down from HK$6,957,000,000 the previous year, reflecting weak demand for flagship smartphones[34] - Employee costs increased by 12% to HK$731,000,000 due to annual salary adjustments and increased investment in human resources in key growth areas[35] - The company’s service revenue rose by 1% to HK$4,546,000,000, primarily due to the recovery in roaming revenue[34] 5G and Technology Initiatives - SmarTone has achieved 5G coverage in all 23 major road tunnels and across all MTR stations in Hong Kong[12] - SmarTone's Home 5G broadband service is particularly appealing to households in village houses and tenement buildings facing slow internet speeds[17] - Revenue from roaming services increased by 49%, while revenue from 5G home broadband services grew by over 100%[25] - As of July 2023, 37% of the company's core monthly fee plan customers have switched to 5G services, representing a 9 percentage point increase from June 2022[25] - SmarTone launched the "SmarTone 5G Ednovation Smart Campus Program," integrating 5G technology into education with diverse solutions to enhance teaching efficiency and stimulate student interest in STEM learning[171] - The program includes a "5G Smart Hydroponic System" at Hong Kong SKH Holy Spirit Primary School, utilizing multiple 4K cameras and sensors for real-time monitoring and AI analysis of plant care[171] - SmarTone transformed a bus into a 5G classroom equipped with IoT devices, allowing automatic control of lighting, air conditioning, and projectors, enhancing students' understanding of 5G applications[172] Corporate Governance - The board proposed a final dividend of HK$0.175 per share, totaling HK$0.32 per share for the year, supported by a strong cash position of HK$1,100,000,000[30] - The board consists of 13 members, with 6 being independent non-executive directors, ensuring a balance of opinions and advice[56] - The company has arranged appropriate liability insurance for its directors, which is reviewed annually[57] - The chairman and CEO roles are held by different individuals to enhance independence and accountability[61] - The company has confirmed that all independent non-executive directors meet the independence criteria as per listing rules[58] - The board meets at least four times a year to discuss overall strategy, operational and financial performance[62] - The company has established a nomination policy to ensure a balanced skill set and diversity among directors to achieve corporate goals[85] Risk Management and Internal Controls - The group maintained an effective risk management and internal control system for the year ended June 30, 2023[90] - The Audit Committee reviewed the independence of the external auditor and ensured that non-audit services do not compromise their objectivity[91] - The group has established a risk management committee at the management level to oversee overall risk management functions[99] - The board has conducted an annual review of the effectiveness of the group's risk management and internal control systems, confirming they remain appropriate and effective as of June 30, 2023[102] Sustainability and Environmental Initiatives - SmarTone achieved a 25% improvement in energy efficiency through modernization of base station technology and an additional 11% improvement using AI-based network solutions, totaling a 36% overall energy efficiency enhancement[124] - The company has implemented a new generation of low-power radio base station equipment, contributing to a 30%-50% efficiency improvement in cooling systems at exchange centers[125] - SmarTone has partnered with HKBR to recycle over 90% of discarded lead-acid batteries from its exchange and data centers, minimizing hazardous waste[126] - The company has adopted a wireless customer management system across all retail locations, significantly reducing paper usage in sales processes[130] - SmarTone's commitment to sustainability includes a goal of reducing greenhouse gas emissions and total energy consumption year-on-year[123] - The company implemented energy-saving measures, including the use of LED lighting and smart air conditioning systems, to reduce energy consumption[133] Employee Engagement and Development - The company organized various health activities and workshops to promote employee well-being, including sessions on physical and mental health[141] - The company provides flexible working arrangements and quarterly paid family leave to support work-life balance for employees[140] - The total number of trained employees rose significantly to 1,034 in 2023, compared to 677 in 2022, marking an increase of 53%[185] - The employee turnover rate decreased to 28.8% in 2023 from 29.5% in 2022, indicating improved employee retention[185] - The average training hours per female employee increased to 12.00 hours in 2023 from 9.51 hours in 2022, an increase of 26%[185] Community Engagement and Social Responsibility - The company provided free roaming data, voice, and SMS services for 10 days to customers in Turkey and Syria affected by earthquakes, ensuring uninterrupted communication[173] - SmarTone's volunteer team actively participated in community service activities, including smartphone workshops for the elderly and food distribution for the underprivileged[176][179] - The company received recognition for its commitment to volunteer work, being awarded the "Caring Company" award annually since the 2002/03 fiscal year[176] - The group actively engages in corporate social responsibility by developing innovative products and services to meet societal communication and technology needs[169]

Financial Performance - Service revenue increased by 1% despite intense market competition [2] - Shareholders' profit attributable increased by 4% to $470,000,000 after excluding potential financial investment loss provisions of $201,000,000 [3] - Shareholders' profit decreased by $154 million to $269 million, primarily due to expected credit losses of $201 million [8] - Service revenue increased by 1% to $4,546 million, driven by a recovery in roaming income [8] - Total revenue decreased to $6,763 million from $6,957 million, reflecting weak demand for flagship smartphones [8] - Operating profit for the year was $702,434,000, a decline of 5.5% compared to $743,622,000 in 2022 [17] - Net profit attributable to shareholders was $268,846,000, down 36.5% from $423,170,000 in the previous year [17] - Basic and diluted earnings per share decreased to 24.3 cents from 38.2 cents in 2022 [17] Revenue Sources - ARPU for mobile service plans remained stable at $224; 5G service customer penetration reached 37% as of July 2023, up 9 percentage points from June 2022 [3] - Roaming revenue grew by 49%; revenue from 5G home broadband services increased by over 100% [2] - The 5G home broadband business is expected to continue its growth trajectory, driven by demand from households without fiber network coverage [4] Dividends and Shareholder Returns - The board proposed a final dividend of 17.5 cents per share, totaling 32.0 cents for the year, representing 75% of the company's basic profit [5] - The proposed final dividend for the year ending June 30, 2023, is 17.5 cents per share, an increase from 15.5 cents in 2022, bringing the total dividends for the year to 32.0 cents per share [49] - The company plans to pay the proposed final dividend on November 17, 2023, subject to shareholder approval at the upcoming annual general meeting [49] Financial Position - The company has a strong net cash position of $1,100,000,000 and robust operating cash flow supporting sustainable long-term growth [2] - Net cash flow from operating activities was $2,254 million, with net cash increasing by $459 million to $1,089 million [10] - The group maintained a strong financial position with total equity of $5,084 million as of June 30, 2023 [10] - Total current liabilities decreased to $2,704,204,000 from $4,091,428,000 in 2022 [20] - Total equity as of June 30, 2023, was $5,084,487,000, down from $5,153,784,000 in the previous year [20] Costs and Expenses - Cost of goods sold decreased by 8% to $2,199 million, attributed to reduced sales of smartphones and accessories [8] - Employee costs rose by 12% to $731 million, due to annual salary adjustments and increased investment in human resources [8] - The actual tax rate increased to 40.7% from 29.5%, influenced by non-deductible spectrum usage fees [9] - Total income tax expense for 2023 was $184,537,000, compared to $176,891,000 in 2022, reflecting an increase of about 4.7% [36] Credit and Risk Management - The expected credit loss recorded was $201 million, reflecting changes in credit risk of financial assets measured at amortized cost [9] - The expected credit loss for financial assets measured at amortized cost increased significantly to $201,257,000 in 2023 from $31,000,000 in 2022, highlighting a substantial rise in credit risk [35] - The impairment loss on accounts receivable for the year ending June 30, 2023, was $2,954,000, up from $1,284,000 in 2022 [46] - The company has maintained appropriate and effective risk management and internal control systems for the year ending June 30, 2023 [53] Future Outlook and Strategy - The company anticipates continued intense competition in the mobile communications industry and plans to invest in growth areas [6] - The company aims to leverage new technologies and collaborate closely with its parent company to accelerate smart city development [6] - The company expects no significant impact on its performance and financial position from the newly adopted accounting standards effective from January 1, 2023 [28] Asset Management - Total non-current assets as of June 30, 2023, were $8,496,421,000, a decrease from $9,179,727,000 in 2022 [19] - Total classified assets as of June 30, 2023, were $10,898,943,000, compared to $12,581,132,000 in 2022, reflecting a decrease of approximately 13.4% [32] - Total financing costs decreased to $132,693,000 in 2023 from $145,440,000 in 2022, representing a reduction of approximately 8.7% [34] Shareholder Actions - The company repurchased 359,500 shares during the year ending June 30, 2023, at a total cost of $1,463,000 [51] - The group issued 8 million new stock options during the year, with 1.2 million options exercised [15] Governance and Compliance - The company aims to continue monitoring and reviewing its corporate governance practices to ensure compliance with the corporate governance code [54] - The independent auditor's report for the consolidated financial statements for the year ending June 30, 2023, was unqualified, indicating no significant issues were found [48]

Financial Performance - The company's profit attributable to shareholders increased by 2% to HK$256 million compared to HK$251 million in the same period last year[11]. - The group reported a 2% increase in net profit attributable to shareholders, reaching HK$256 million for the first half of 2022/23, compared to HK$251 million in the same period last year[17]. - Total revenue increased by 1% to HK$3.809 billion, compared to HK$3.792 billion in the same period last year[17]. - The net profit attributable to shareholders for the period was HKD 255,832, up from HKD 252,077, indicating a growth of 1.1%[57]. - Basic and diluted earnings per share for the period were both HKD 23.1, compared to HKD 22.6 in the previous year, marking an increase of 2.2%[57]. - The total comprehensive income for the period was HKD 246,947, slightly down from HKD 249,716 in the same period last year, a decrease of 1.1%[60]. - The total tax expense for the six months ended December 31, 2022, was HK$100,133,000, up from HK$83,436,000 in 2021, representing an increase of 20.0%[95]. Revenue Growth - Service revenue grew by 4%, with the mobile service ARPU rising by 6% year-on-year, driven by the continuous increase in 5G users[11]. - Service revenue rose by 4% to HK$2.333 billion, driven by an increase in 5G users and recovering roaming revenue[17]. - Revenue recognized over time for the six months ended December 31, 2022, was HKD 2,333,030, compared to HKD 2,242,404 for the same period in 2021[81]. Customer Metrics - As of February 2023, 35% of the company's customers are using 5G services, with strong growth momentum continuing[11]. - The number of total customers in Hong Kong slightly decreased by 100,000 to 2.6 million, attributed to the impact of real-name registration requirements[17]. - The average revenue per user (ARPU) for mobile service plans increased by 6% to HK$223, up from HK$210 in the previous year[17]. 5G Network Expansion - The company has expanded its 5G network coverage to over 99% of the population in Hong Kong[6]. - The company is focused on upgrading customers to 5G services, which has positively impacted customer numbers and ARPU[11]. - The company's 5G home broadband service has seen significant growth, providing faster speeds at lower costs for households without fiber coverage[11]. Operational Investments - The company continues to invest in high-growth areas to enhance service and network quality despite rising operational costs[11]. - The company plans to continue investing in 5G infrastructure to enhance network quality and customer experience[14]. - The government has committed to supporting mobile communication investments, which is expected to help control operational costs[14]. Financial Position - As of December 31, 2022, the total equity of the group was $5,230,000,000, with total borrowings amounting to $1,495,000,000[20]. - The cash and bank balances, including short-term bank deposits, were $2,402,000,000 as of December 31, 2022, up from $2,141,000,000 on June 30, 2022[20]. - The net cash position of the group was $1,298,000,000 as of December 31, 2022, compared to $1,021,000,000 on June 30, 2022[20]. - The group generated a net cash inflow from operating activities of $1,245,000,000 for the period ending December 31, 2022[20]. Employee and Management Costs - The total employee costs for the period ending December 31, 2022, were $361,000,000, an increase from $320,000,000 in the same period of the previous year[27]. - As of December 31, 2022, the group had 1,865 full-time employees, an increase from 1,737 employees as of June 30, 2022[27]. - Total remuneration for key management personnel was HKD 14,011,000 for the six months ended December 31, 2022, compared to HKD 11,176,000 for the same period in 2021[126]. Corporate Governance - The audit committee reviewed the interim financial statements for the six months ending December 31, 2022, and found the accounting policies appropriate and consistent with industry standards[156]. - The company adhered to the corporate governance code principles during the six-month period, with a noted absence of some non-executive directors at the annual general meeting[158]. - All directors confirmed compliance with the standard code of conduct for securities transactions during the six-month period ending December 31, 2022[159]. Community and Employee Engagement - SmarTone is committed to community support through various activities aimed at helping those in need and fostering a harmonious society[51]. - The company offers diverse training and career development opportunities for employees, including cross-departmental exchanges and skill training[52]. - SmarTone promotes work-life balance by creating a relaxed work environment and organizing festive celebrations and care activities for employees[53]. Strategic Initiatives - The company has implemented a trial program for 40,000 customers to interact with staff via WhatsApp, receiving positive feedback and plans to expand the service[11]. - The company has partnered with Sun Hung Kai Properties' membership program "The Point," allowing customers to earn points on all spending for various benefits[11]. - The company is exploring international business development opportunities, particularly in the internet and technology sectors[33].