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].

Financial Performance - Revenue for the fiscal year ended June 30, 2022, was HKD 6,957 million, representing a 4% increase from HKD 6,720 million in 2021[11] - Profit attributable to shareholders decreased by 5% to HKD 423 million, down from HKD 445 million in the previous year[11] - Total revenue increased by 4% to HKD 6,957 million, compared to HKD 6,720 million in 2020/21, driven by growth in 5G services and recovery in roaming income[24] - The company's profit attributable to shareholders for the year was $423 million, a decrease of 5% compared to last year's $445 million, while profit actually grew by 16% year-on-year when excluding government subsidies[20] - Basic earnings per share for 2022 was HKD 0.38, compared to HKD 0.40 in 2021, reflecting a decline of 5%[131] - Total comprehensive income for the year amounted to HKD 421,965,000, compared to HKD 458,040,000 in the previous year, reflecting a decline of 7.8%[151] Assets and Liabilities - Total assets increased by 18% to HKD 12,581 million, compared to HKD 10,650 million in 2021[12] - Total liabilities increased significantly to HKD 7,427,348,000 from HKD 5,553,951,000, marking a rise of 33.7%[156] - The total equity attributable to shareholders was HKD 5,153,784,000, a slight increase from HKD 5,097,108,000 in the previous year[156] - Current assets rose to HKD 3,401,405,000, up from HKD 3,187,936,000, indicating an increase of 6.7%[154] Cash Flow - Net cash inflow from operating activities was HKD 2,036 million, a decrease of 16% from HKD 2,420 million in 2021[14] - The net cash generated from operating activities was HKD 2,036,156,000, down from HKD 2,420,431,000, a decrease of 15.8%[157] - Cash outflows from investing activities totaled HKD 2,621,638,000, compared to HKD 1,135,953,000 in the previous year, indicating a significant increase in investment spending[158] Customer Engagement and Services - SmarTone 5G LAB attracted approximately 400,000 visitors since its opening, showcasing various 5G applications[15] - SmarTone Home 5G broadband service targets three customer segments, including those facing slow internet speeds and those needing additional connectivity for remote work[17] - The proportion of 5G users (excluding virtual network operator customers) increased to approximately 28% as of June 30, 2022, contributing to ARPU growth, although the recovery pace remains slow[20] - Customer satisfaction ratings have improved, with a reported increase of 10% in positive feedback from users[114] Corporate Governance - The board consists of three executive directors, five non-executive directors, and seven independent non-executive directors as of June 30, 2022, ensuring a balanced governance structure[35] - All directors are required to retire at least once every three years and be re-elected by shareholders at the annual general meeting[36] - The company has established a policy for independent non-executive directors who have served more than nine years to be subject to a separate resolution for reappointment[36] - The board meets at least four times a year to discuss overall strategy, operational and financial performance, and significant acquisitions or disposals[38] Risk Management and Compliance - The group maintained an effective risk management and internal control system for the year ending June 30, 2022[54] - The company emphasizes the importance of compliance with legal and regulatory requirements, having adhered to all significant laws and regulations affecting its operations as of June 30, 2022[64] - The audit committee's responsibilities include ensuring the accuracy and fairness of the group's financial reporting and compliance with corporate governance regulations[47] Shareholder Information - The target dividend payout ratio is generally set at 75% of the group's annual profit attributable to shareholders[58] - The total dividend for the year is proposed to be HKD 0.30 per share, consistent with the previous year, which includes an interim dividend of HKD 0.155 and a final dividend of HKD 0.145[64] - The company repurchased a total of 5,364,500 shares during the fiscal year ending June 30, 2022, with 5,196,500 shares canceled before this date[101] Strategic Initiatives - The company plans to continue investing in world-class digital infrastructure to support Hong Kong's development as a technology hub and integration with mainland China and the Greater Bay Area[22] - The company is committed to building a 5G network in underserved areas, completing urgent construction work within two weeks during the peak of the pandemic[129] - The company is investing $50 million in R&D for new technologies aimed at enhancing customer experience[117] Community Engagement - The company provided free SIM cards and additional local data services to frontline healthcare workers during the pandemic, ensuring seamless communication[129] - The company supports community initiatives, including the "Smart Elderly Digital Support Program," providing smartphones and free communication services to seniors[128] - The company has engaged in charitable activities, providing free data cards and 5G broadband services to underprivileged families during the pandemic[130]

Financial Performance - Shareholder profit for the period was HK$251 million, a decrease of 6% compared to HK$267 million in the same period last year[14]. - Service revenue increased by 3%, with mobile service ARPU rising by 4% to HK$210[14]. - The group's profit attributable to shareholders slightly decreased to HK$251 million, compared to HK$267 million in the same period last year[20]. - Service revenue increased by 3% to HK$2,242 million, driven by strong growth in 5G customer base and home broadband services[20]. - Total revenue rose by 17% to HK$3,792 million, primarily due to growth in local service revenue and mobile device sales[20]. - Mobile device and accessory sales increased by 44% to HK$1,549 million, attributed to strong sales of 5G flagship devices[20]. - Operating profit for the period was HKD 390,905, representing a 2.3% increase from HKD 380,015 in the previous year[59]. - Net profit after tax was HKD 252,077, a decrease of 4.8% compared to HKD 264,841 in the same period of 2020[60]. - Total comprehensive income for the period was HKD 249,716, compared to HKD 273,480 in the previous year[62]. - Total revenue for the six months ended December 31, 2021, was HKD 3,791,522, an increase of 16.9% from HKD 3,244,313 in the same period of 2020[59]. 5G Services and Infrastructure - Approximately 20% of SmarTone's postpaid customers are currently using 5G services, which offer a significant premium over 4G plans[14]. - The 5G home broadband service has shown strong customer growth, providing faster and more affordable internet options compared to existing providers[14]. - SmarTone's 5G network now covers 99% of the population in Hong Kong, including all major transport routes and quarantine centers[15]. - The company successfully acquired additional spectrum at a reasonable price, resulting in the highest per-customer spectrum resources among all operators[15]. - Over 90% of trial customers for the 5G home broadband service opted for long-term contracts, indicating strong market acceptance[15]. - SmarTone's 5G LAB has attracted around 400,000 visitors, showcasing the potential of 5G applications in business and daily life[5]. - SmarTone has established 5G networks at ten community isolation treatment facilities to support healthcare workers and isolated citizens[52]. - The company implemented a "5G STEM Classroom" initiative to educate local students on 5G applications[54]. Customer Service and Community Support - SmarTone received multiple awards for its customer service, including "Best Quality Service Retailer - Telecommunications" and "Best Store Technology Application - Silver Award" in 2021[8]. - The company provided additional local data, unlimited local calls, and free services to frontline healthcare workers during the pandemic[52]. - SmarTone's team delivered 5G Wi-Fi routers and free local data cards to healthcare workers in isolation facilities[52]. - The company has expanded its community support initiatives, including providing smartphones and free communication services to elderly individuals[53]. Financial Position and Investments - As of December 31, 2021, the group reported total equity of $5,167 million and total borrowings of $1,546 million, maintaining a strong financial position[23]. - Cash and bank balances stood at $2,101 million as of December 31, 2021, slightly up from $2,095 million on June 30, 2021[23]. - The group generated a net cash inflow from operations of $1,060 million during the period, with major outflows for fixed asset purchases and bank loan repayments[23]. - The company is actively investing in building world-class 5G and digital infrastructure, viewing it as key to Hong Kong's development as a technology hub[18]. - Spectrum costs are expected to exceed HK$400 million for the year, with a total of HK$7 billion paid or provided since 2011[18]. Employee and Management Information - Employee costs rose by 28% to HK$320 million, primarily due to the absence of government wage subsidies during the period[20]. - The group had 1,702 full-time employees as of December 31, 2021, with total employee costs amounting to $320 million for the period[29]. - The company has a strong focus on employee development, offering diverse training and career advancement opportunities[55]. - The total remuneration for key management personnel was HKD 11,176,000 for the six months ended December 31, 2021, down from HKD 18,398,000 in the same period of 2020, representing a decrease of approximately 39%[116]. Corporate Governance - The company has a strong commitment to corporate governance, with members actively participating in various committees and boards within the industry[37]. - The board includes members with extensive experience in finance and management, enhancing the company's governance and strategic direction[37]. - The company continues to maintain a strong governance structure with various committees, including audit and remuneration committees[40][43]. - The audit committee reviewed the interim financial statements for the six months ended December 31, 2021, and found the accounting policies and calculations appropriate and consistent with industry standards[140]. - All directors confirmed full compliance with the standard code of conduct for securities transactions during the six months ended December 31, 2021[144]. Shareholder Information - The company plans to continue paying a mid-term dividend of HK$0.145 per share, maintaining the same level as last year[18]. - The company declared an interim dividend of 14.5 cents per share, consistent with the previous year, amounting to HKD 160,767,000[100]. - The company is controlled by Cellular 8 Holdings Limited, which owns 68.72% of the shares, with the remaining 31.28% widely held[115]. - The company reported a significant decrease in performance guarantees from HKD 2,388,884,000 as of June 30, 2021, to HKD 798,383,000 as of December 31, 2021, indicating a reduction of approximately 67%[114].

Financial Performance - Total revenue for the year ended June 30, 2021, was HKD 6,720 million, a decrease of 4% compared to HKD 6,986 million in 2020[11]. - Profit attributable to shareholders increased by 17% to HKD 445 million, up from HKD 379 million in the previous year[11]. - Basic earnings per share rose by 18% to HKD 0.40, compared to HKD 0.34 in 2020[11]. - Service revenue decreased by 5% to HKD 4,339,000,000, with roaming revenue down 58% due to travel restrictions, partially offset by a 2% increase in local service revenue[27]. - Total revenue declined by 4% to HKD 6,720,000,000, mainly attributed to the drop in roaming income[27]. - EBITDA rose by HK$30,000,000 or 1% to HK$2,460,000,000, while operating profit increased by 30% to HK$674,000,000[29]. - The company’s financial performance for the year ending June 30, 2021, is detailed in the consolidated income statement on page 58[77]. - The company reported a profit of HKD 378,985 for the year, compared to HKD 339,617 in 2020, representing an increase of approximately 11.6%[178]. - The total comprehensive income for the year ended June 30, 2021, was HKD 460,023,000, compared to HKD 458,040,000 for the previous year, reflecting a slight increase[181]. Cash Flow and Assets - Net cash inflow from operating activities was HKD 2,420 million, representing a 20% increase from HKD 2,017 million in 2020[13]. - Cash and bank balances stood at HKD 2,095,000,000 as of June 30, 2021, down from HKD 2,251,000,000 a year earlier[30]. - The group maintained a net cash position of HK$994,000,000 as of June 30, 2021, compared to HK$604,000,000 in the previous year[30]. - The operating cash flow for the year ended June 30, 2021, was HKD 2,637,102, an increase from HKD 2,298,821 in 2020, representing a growth of approximately 14.7%[175]. - The total assets amounted to HKD 10,650 million, with current liabilities of HKD 2,660 million, resulting in net assets of HKD 7,990 million[153]. - The total number of shares held by directors and senior management as of June 30, 2021, includes 5,162,337 shares held by Chairman Guo Binglian, representing 0.46% of the issued voting shares[88]. 5G and Digital Transformation - The company launched a 5G bus service in collaboration with KMB, providing passengers with access to SmarTone's 5G network[15]. - SmarTone Solutions is integrating 5G and the latest technologies into end-to-end enterprise solutions to drive digital transformation[17]. - The company has invested significantly in building a world-class 5G network, achieving 99% population coverage in Hong Kong, with independent testing confirming it as the best 5G network in the region[21]. - The 5G Lab, opened in May 2021, attracted approximately 200,000 visitors in three months, including CEOs from major companies, showcasing the potential of 5G technology[22]. - The company anticipates accelerated customer upgrades to 5G services, which will be a key growth driver, alongside increased demand for enterprise application solutions[25]. - New services such as network security and 5G home broadband are expected to generate additional revenue streams for the company[25]. - The company is collaborating with various operators to develop telemedicine services and Smart Health solutions for elderly care providers, indicating a focus on innovative applications of 5G technology[24]. Governance and Board Structure - The board consists of 2 executive directors, 5 non-executive directors, and 6 independent non-executive directors, ensuring a balanced governance structure[39]. - All directors are required to retire at least once every three years and are subject to re-election by shareholders[40]. - The company held 4 board meetings and 1 annual general meeting during the year ending June 30, 2021, with attendance rates of 100% for most directors[43]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring compliance with governance standards[39]. - The company has arranged appropriate liability insurance for its directors, which is reviewed annually[39]. - The board meets at least four times a year to discuss overall strategy, operational and financial performance, and significant acquisitions or disposals[42]. - The chairman and president roles are held by different individuals to enhance independence and accountability[41]. - The board comprises members from diverse age groups and backgrounds, ensuring a balanced representation[53]. Risk Management and Compliance - The company maintained an effective risk management and internal control system for the year ended June 30, 2021[55]. - The audit committee is satisfied with the independence and objectivity of PwC as the external auditor for the company[59]. - The company emphasizes the importance of accurate revenue recognition due to inherent risks in the telecommunications industry, identifying it as a significant audit risk[161]. - The auditor identifies and assesses risks of material misstatement in the financial statements and designs audit procedures to address these risks[165]. - The group faces significant risks including intense market competition, reliance on effective IT systems, and compliance with regulatory requirements[72]. - The group has established a risk management framework to address all critical operational risks[72]. Shareholder Returns and Dividends - The company plans to pay a final dividend of HK$0.155 per share, resulting in a total annual dividend of HK$0.30 per share, based on a 75% payout ratio[25]. - The proposed final dividend for the year ending June 30, 2021, is $0.155 per share, an increase from $0.15 per share in 2019/20, resulting in a total dividend of $0.30 per share for the year[78]. - The total dividend declared was HKD 333 million, marginally up from HKD 331 million in the previous year[152]. - The group aims for a target dividend payout ratio of 75% of the annual profit attributable to shareholders[69]. Employee Relations and Development - The group emphasizes employee relations, providing training and development opportunities, and fostering communication[75]. - The company has not made any charitable or other donations during the year, consistent with the previous year[82]. - The company provides training records for directors, ensuring they are informed about their responsibilities and the company's operations[46]. Share Options and Incentives - The company has a stock option plan that allows for the issuance of up to 10% of the total issued shares at the time of adoption, with a maximum of 30% of the total issued shares available for issuance upon exercise of all outstanding options[100]. - The stock options granted to directors and employees are subject to a vesting schedule, with a maximum of 30% exercisable after one year, 60% after two years, and the remainder after three years[106]. - The share incentive plan was adopted on June 29, 2018, with a maximum limit of 10% of the total shares issued as of the adoption date, which is 1,124,269,277 shares[111]. Community Engagement - The company has been actively involved in community engagement through various activities, including the introduction of a "5G STEM Mobile Classroom" for local students[149].