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].

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].