Revenue and Profitability - Revenue for the year ended June 30, 2023, increased by 12% to HKD 2,346 million, driven by demand from "hyperscale" customers for data center space and price increases for existing customers[2] - Profit attributable to shareholders increased by 7% to HKD 905 million, indicating solid profitability growth[2] - The group's revenue increased by 12% year-on-year to HKD 2.346 billion, driven by demand from existing and new customers in data center and IT facilities[16] - Revenue from data center and IT facilities rose by 11% to HKD 2.161 billion, supported by new contracts signed in the 2022/23 fiscal year[16] - Operating profit increased by 14% year-on-year to HKD 1.192 billion, with EBITDA rising by 12% to HKD 1.677 billion, maintaining a strong EBITDA margin of 71%[16] - The company reported a pre-tax profit of HKD 1,083,694,000 for the year ended June 30, 2023, compared to HKD 1,012,865,000 for the previous year[39] Investments and Projects - The company plans to invest over HKD 1.5 billion in the MEGA IDC project, which will more than double the existing design power capacity of approximately 100 MW[4] - The MEGA IDC facility is expected to be operational next year, with significant customer interest already secured[5] - The company has acquired sufficient land to meet growth demands for the next four years, with the upcoming MEGA IDC providing an additional 700,000 square feet of data center space[8] - The MEGA IDC flagship project will provide around 1.2 million square feet of total floor area and support up to 180 megawatts of IT power capacity, with the first phase expected to be completed in Q4 2023[12] - The company is investing in new data center projects to enhance capacity in response to increasing data demands, indicating a commitment to long-term capital investment[17] Financial Position and Equity - The total equity of the group as of June 30, 2023, is HKD 4.7 billion, which could increase to HKD 29.8 billion based on independent property valuations[6] - The adjusted debt-to-equity ratio could significantly decrease to 45% (including shareholder loans) and 32% (excluding shareholder loans) based on market valuations[6] - As of June 30, 2023, total equity amounted to HKD 4,655,821,000, an increase from HKD 4,591,536,000 as of June 30, 2022, reflecting a growth of approximately 1.4%[24] - The company’s retained earnings reached HKD 1,753,006,000 as of June 30, 2023, up from HKD 1,684,299,000 a year earlier, representing an increase of approximately 4.1%[24] Costs and Expenses - The company is taking measures to manage rising costs, particularly in labor, construction, and equipment, while maintaining a focus on cost discipline[5] - The company is facing ongoing inflationary pressures, with rising operational costs including wages and construction materials, which have increased financing costs due to high interest rates[12] - Financing costs rose by 266% to HKD 109 million due to increased loan rates and levels[16] - The company’s total financial costs for 2023 were 108,772 thousand HKD, significantly higher than 29,715 thousand HKD in 2022, marking an increase of about 265.5%[45] Dividends - The proposed final dividend for the year ended June 30, 2023, is HKD 0.112 per share, with a payout ratio of approximately 50%, down from around 100% in recent years[4] - The company declared a final dividend of HKD 787,313,000 for the year, consistent with the previous year's distribution[24] - The total dividend for the year ending June 30, 2023, is HKD 0.112 per share, compared to HKD 0.208 per share for the previous year[59] Customer Demand and Market Position - There is strong demand for "hyperscale" capacity, particularly from major cloud service providers, with increased inquiries and contract renewals from existing customers[5] - The company is strategically positioned to capitalize on the increasing demand for high-density power from cloud service providers and new economy companies[10] - The company has received multiple customer commitments for the MEGA IDC, indicating strong demand for its data center services[12] Employee and Operational Metrics - The company employed 461 full-time employees as of June 30, 2023, focusing on employee health and safety while maintaining high service standards[19] - The total employee compensation for 2023 was 279,392 thousand HKD, up from 252,784 thousand HKD in 2022, reflecting an increase of approximately 10.5%[45] Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules for the year ending June 30, 2023[64] - The company's financial statements for the year ending June 30, 2023, have been reviewed by the audit committee and audited by Deloitte, with an unmodified opinion issued[63] Accounting Standards and Regulations - The company applied revised Hong Kong Financial Reporting Standards for the first time in the current year, which did not significantly impact its financial position or performance[28] - The company expects that the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[29] - The amendments to HKAS 12 regarding international tax reform require separate disclosure of current tax expenses/income related to the second pillar tax during the reporting period starting on or after January 1, 2023[30]

Financial Performance - Revenue increased by 11% year-on-year to HKD 1,108 million for the six months ended December 31, 2022, driven by new and existing customer demand for data center services[6] - EBITDA rose by 11% year-on-year to HKD 805 million, reflecting strong operational performance[5] - Profit attributable to shareholders increased by 6% year-on-year to HKD 433 million[5] - Revenue increased by 11% year-on-year to HKD 1.108 billion, driven by demand from existing and new customers in data center and IT facilities[16] - Operating profit rose by 11% year-on-year to HKD 558 million, with EBITDA also increasing by 11% to HKD 805 million, maintaining a strong EBITDA margin of 73%[16] - Gross profit for the same period was HKD 630,619, representing a gross margin of 56.8%, compared to HKD 585,272 and a margin of 58.8% in the prior year[46] - Operating profit increased to HKD 558,156, up 10.7% from HKD 504,112 year-on-year[46] - Profit attributable to shareholders for the period was HKD 433,124, a rise of 5.5% from HKD 410,338 in the previous year[46] - Basic earnings per share for the period was HKD 0.1067, compared to HKD 0.1011 in the same period last year, reflecting a 5.5% increase[46] - Total comprehensive income for the period was HKD 433,153, slightly up from HKD 410,327 in the previous year[47] Business Growth and Expansion - The data center business generated HKD 815.9 million in EBITDA, indicating robust growth in this segment[4] - Strong demand from cloud service providers continues, with several clients expanding their capacity in the company's facilities[7] - The completion of MEGA Gateway adds approximately 200,000 square feet of floor area and 20 megawatts of power capacity, with over 60% of the space already committed by customers[9] - The total floor area of data centers in Hong Kong will expand from 1.5 million square feet as of December 31, 2022, to nearly 3 million square feet after the completion of MEGA Gateway and MEGA IDC[12] - The power capacity of the data centers will increase from 80 megawatts to over 280 megawatts following the full operation of the new facilities[12] - MEGA IDC's first phase, targeting 500,000 square feet, is expected to be operational by Q4 2023, with a second phase of approximately 700,000 square feet planned for 2026[12] - The MEGA Gateway and MEGA IDC projects are part of a robust growth plan, positioning the group to benefit from the ongoing demand for data centers in Asia and Hong Kong[10] Sustainability and Efficiency - The company is investing in energy efficiency projects to reduce operational costs and carbon footprint amid rising inflation and energy prices[7] - The group is committed to investing in energy-efficient equipment and infrastructure for its data centers, achieving top ratings in green building certifications[9] - The group declared and distributed dividends totaling HKD 844,287,000, an increase of 7.2% from HKD 787,313,000 in the previous year[82] Capital Structure and Financing - The company is managing its capital structure prudently during the current interest rate hike cycle to ensure cost-effective financing[7] - The group’s net bank loans increased by 15% to approximately HKD 8.968 billion as of December 31, 2022[18] - The group’s debt ratio (net debt to equity) was 306%, which would drop to 215% when excluding a long-term unsecured shareholder loan of HKD 3.8 billion[18] - The company has considered various funding sources for future liquidity, including internal resources and available bank credit lines[53] - New bank loans raised during the period totaled HKD 1,150,000,000, a substantial increase from HKD 400,000,000 in the previous year[52] Legal and Regulatory Matters - The company has received a favorable final judgment regarding a legal case related to the Tseung Kwan O Industrial Estate, which supports a competitive environment in the data center industry[8] - The company confirmed compliance with the corporate governance code during the six-month period ending December 31, 2022[114] - All directors confirmed adherence to the standard code of conduct for securities trading during the same period[113] Management and Governance - The company reported a director's fee of HKD 52,500 and total compensation of approximately HKD 8,908,000 for the CEO for the fiscal year ending June 30, 2022[22] - The company’s COO received a director's fee of HKD 45,000 and total compensation of approximately HKD 4,929,000 for the fiscal year ending June 30, 2022[25] - The company emphasizes annual reviews of executive compensation based on market levels and individual contributions[22] - The board of directors consists of five executive directors, six non-executive directors, and six independent non-executive directors as of the report date[114] Shareholder Information - Major shareholders include Sunco Resources Limited and HSBC Trustee (C.I.) Limited, holding a combined total of 3,441,594,000 shares, representing 147.14% of the issued share capital[107] - The company has authorized a total of 233,905,733 stock options under the 2022 plan, effective from November 1, 2022[104] - The company holds 963,536,900 shares in Vivid Synergy Limited, representing 20.00% of the issued shares as of December 31, 2022[99] Operational Metrics - The company reported a financial cost of HKD 38,160, significantly higher than HKD 13,687 in the prior year, indicating increased borrowing costs[46] - The company incurred a net cash outflow from investing activities of HKD 883,126,000, compared to HKD 618,196,000 in the prior period, indicating a significant increase in capital expenditures[52] - The total amount of property, plant, and equipment additions was approximately HKD 1,225,215,000, significantly higher than HKD 853,722,000 in the previous year, showing increased investment in assets[71]

Financial Performance - Revenue for the period ending June 30, 2022, was HKD 2,085,845, an increase from HKD 1,873,950 in the previous year, representing a growth of approximately 11%[6] - EBITDA for the data center business reached HKD 786,035, reflecting an increase from HKD 747,046 in the previous year, which is a growth of about 5%[6] - The company reported a net profit attributable to shareholders of HKD 436,493 for the period, up from HKD 410,338 in the previous year, marking an increase of about 6%[6] - Operating profit for the period was HKD 538,468, compared to HKD 504,112 in the previous year, indicating a growth of approximately 7%[6] - Revenue for the year ended June 30 increased by 11% to HKD 2.086 billion, driven by demand from existing and new customers for data centers[15] - EBITDA rose by 10% to HKD 1.501 billion, or 11% when excluding COVID-19 related subsidies[16] - Profit attributable to shareholders increased by 8% to HKD 847 million, or 9% when excluding COVID-19 related subsidies[16] - The group reported a revenue increase of 11% year-on-year to HKD 2.086 billion, driven by demand from existing and new customers in data centers and IT facilities[29] - The operating profit rose by 8% year-on-year to HKD 1.043 billion, with data center and IT facilities contributing to a 9% increase in operating profit before corporate expenses, interest, and tax[29] - The EBITDA increased by 10% year-on-year to HKD 1.501 billion, maintaining a strong EBITDA margin of 72% due to economies of scale and cost efficiency improvements[29] Data Center Operations - The total floor area of data centers is approximately 3 million square feet, with a market share of around 26%[8] - The company operates 6 data centers, with a total floor area of 1.5 million square feet, contributing significantly to its revenue stream[8] - Two new data centers are under construction, with a total floor area of 1.4 million square feet and power capacity increasing from 80 MW to over 280 MW[10] - The company plans to expand its data center capabilities, leveraging government-designated land for high-end data center use in Tseung Kwan O[8] - Demand for "hyperscale" capacity remains strong, with most cloud service customers expanding their capacity in the company's data centers[16] - The company has a strong growth plan, with total data center floor area in Hong Kong expected to expand from 1.5 million square feet to nearly 3 million square feet after the completion of new projects[19] - Power capacity will increase from the current 80 MW to over 280 MW to meet growing customer demand[19] - MEGA IDC, the flagship project in Tseung Kwan O, aims to become the largest single data center in Hong Kong with a first phase floor area of approximately 500,000 square feet, targeting a 2023 opening[19] - The second phase of MEGA IDC will have a floor area of approximately 700,000 square feet, with a target opening in 2026[19] - The company is recognized as the largest telecommunications-neutral and cloud-neutral data center operator in Hong Kong, well-positioned to benefit from the ongoing demand growth in the data center market[20] Financial Position and Debt - Total assets as of June 30, 2022, were HKD 18,142,782, with total liabilities of HKD 13,551,246, resulting in total equity of HKD 4,591,536[7] - As of June 30, 2022, the group's bank balance and deposits were HKD 310 million, with bank loans totaling HKD 8.087 billion, resulting in net bank loans of approximately HKD 7.777 billion, a 7% increase from HKD 7.292 billion on December 31, 2021[31] - The group's debt ratio (net debt to equity attributable to shareholders) was 253% as of June 30, 2022; excluding the HKD 3.8 billion long-term unsecured shareholder loan from Sun Hung Kai Properties, the ratio was 170%[32] - The adjusted debt ratio, considering the fair value of completed data centers, would significantly reduce to 42% and 28% with and without shareholder loans, respectively[33] - The financing costs increased by 33% year-on-year to HKD 30 million, primarily due to higher loan levels[29] - The group successfully secured a HKD 3 billion 5-year term loan and revolving loan financing in November 2021 to fund multiple data center projects[32] Shareholder and Dividend Information - The company plans to distribute a final dividend of HKD 0.208 per share, subject to approval at the annual general meeting[17] - The company proposed a final dividend of HKD 0.208 per share for the year ended June 30, 2022, an increase from HKD 0.194 per share in 2021, totaling HKD 0.208 for the full year[61] - The board of directors emphasized a stable dividend policy, contingent on the group's financial performance, capital needs, and overall economic conditions[61] Corporate Governance and Management - The board of directors is responsible for the overall leadership and strategic direction of the company, ensuring compliance with corporate governance standards[130] - The company emphasizes high business ethics and corporate governance standards as a key objective to enhance shareholder value[128] - The board consists of 17 members, including 2 female directors, representing approximately 12% of the board[132] - The company aims to increase the proportion of female members on the board when suitable candidates are available[132] - The company has established formal service agreements for executive and non-executive directors, ensuring clarity in their roles and responsibilities[134] - The company has mechanisms in place to ensure the board receives independent viewpoints, enhancing the board's independence and decision-making[133] - The company has a code of conduct that outlines standards for employees to perform their duties with honesty and integrity[159] Risk Management - The company has implemented a risk management policy to effectively identify, assess, mitigate, report, and monitor key business risks across all business units[153] - The risk management committee identifies risks that could adversely affect the achievement of business objectives at least once a year[153] - The ongoing COVID-19 pandemic poses a risk of operational disruptions, particularly if there are strict lockdowns affecting data center operations and staff availability[154] - The political instability from the US-China trade war is creating uncertainty for the company's clients and future business prospects[154] Employee and Director Compensation - The company reported a director's remuneration of HKD 52,500 for the position of Vice Chairman and committee member as of the fiscal year ending June 30, 2022[37] - The CEO's total compensation, including basic salary, bonuses, and retirement benefits, amounted to approximately HKD 8,908,000 for the fiscal year ending June 30, 2022[38] - The company has a discretionary bonus system that considers overall group performance and individual contributions when determining bonuses[94] - The company provides medical, provident fund, and vacation benefits to ensure basic needs for employees[93] Shareholder Transactions and Interests - The company engaged in several transactions with Sun Hung Kai Properties and its affiliates during the year, with certain directors abstaining from voting to avoid conflicts of interest[70] - The company has identified significant related party transactions during the fiscal year, which are disclosed in the financial statements[101] - Major shareholders include Sunco Resources Limited and HSBC Trustee (C.I.) Limited, holding 1,719,427,500 shares each, representing approximately 147.02% and 147.11% of the issued share capital respectively[99][100]

Financial Performance - Revenue for the six months ended December 31, 2021, increased by 8% to HKD 995 million compared to HKD 923 million in the same period of 2020[5]. - EBITDA rose by 10% to HKD 728 million, up from HKD 662 million, excluding COVID-19 related subsidies[5]. - Profit attributable to shareholders increased by 6% to HKD 410 million from HKD 389 million[5]. - The group's revenue increased by 8% year-on-year to HKD 995 million, driven by a 9% rise in data center and IT facility revenue to HKD 935 million[15]. - Operating profit rose by 7% year-on-year to HKD 504 million, with data center and IT facility operating profit increasing by 9% to HKD 523 million[15]. - EBITDA increased by 10% year-on-year to HKD 728 million, with an EBITDA margin improvement from 72% to 73%[15]. - The company reported a net profit of HKD 410,338,000 for the six months ended December 31, 2021, up from HKD 388,661,000 in the same period of 2020, indicating a growth of approximately 5.5%[69]. - The company reported a total comprehensive income of HKD 410,327,000 for the period, compared to HKD 388,631,000 in the previous year[48]. Data Center Operations - Data center business revenue grew by 9% to HKD 935 million, compared to HKD 856 million in the previous year[5]. - The demand for data center services remains strong, driven by high usage of online applications such as video conferencing and e-commerce[7]. - The company’s data centers, including MEGA Two and MEGA Plus, provide advanced infrastructure and quality services to meet increasing customer demands[7]. - All data centers are owned by the company, ensuring long-term service stability without rental expenses, positively impacting EBITDA quality[7]. - The company expects continued demand for "hyperscale" capacity, unaffected by geopolitical tensions[7]. - The EBITDA quality of the company is considered superior to many industry peers that rely on rented data center facilities[7]. - The company has benefited from the expansion of cloud service providers in Hong Kong, enhancing its service offerings[7]. - New data centers MEGA Gateway and MEGA IDC are set to launch in the second half of 2022 and the first half of 2023, respectively, significantly increasing service capacity[9]. - Total floor area of data centers in Hong Kong will expand from 1.4 million square feet to nearly 3 million square feet, with power capacity increasing from 70 MW to 280 MW[9]. - MEGA Fanling, the eighth data center, is fully leased to a cloud service provider and will soon commence operations[9]. - The company aims to achieve a cooling performance coefficient of 5 or above by 2030, significantly reducing carbon intensity in data center cooling[9]. - The company has received strong demand from major clients for the new MEGA Gateway and MEGA IDC facilities, indicating robust market interest[9]. Financial Stability and Investments - Net bank loans increased by 6% to approximately HKD 72.92 billion as of December 31, 2021[17]. - The debt-to-equity ratio was 272%, which would be 179% excluding a long-term unsecured shareholder loan of HKD 3.8 billion[17]. - The company continues to receive strong support from major shareholders and banks for its expansion financing needs[9]. - Financing of HKD 3 billion was successfully secured for new and existing data center projects[17]. - The group secured a new long-term bank financing of HKD 3,000,000,000 during the period, with unused bank financing totaling HKD 2,600,000,000 as of December 31, 2021[79]. Corporate Governance and Executive Compensation - The company has established a remuneration committee to determine the director's annual salary based on contributions and market benchmarks[21]. - The company is committed to annual reviews of executive compensation based on market levels and individual contributions[24][25]. - The company has a governance committee to oversee corporate governance practices[20]. - The CEO received a total compensation of approximately HKD 9,240,000, including a director's fee of HKD 52,500 for the fiscal year ending June 30, 2021[21]. - The total remuneration for key management personnel during the period was HKD 14,340,000, compared to HKD 8,004,000 in 2020, reflecting an increase of approximately 79%[88]. Compliance and Audit - The independent directors have no relationships with any major shareholders or executives of the company[40][41]. - The company’s board of directors is responsible for the preparation and presentation of the financial data in accordance with applicable standards[44]. - Deloitte conducted a review of the company’s financial data as of December 31, 2021, and found no significant issues[44]. - The interim financial results for the six months ending December 31, 2021, were reviewed by Deloitte, confirming compliance with Hong Kong accounting standards[109]. Shareholder Information - The company has issued 4,073,833,000 shares as of December 31, 2021, reflecting a slight increase from 4,435,223,000 shares as of June 30, 2021[49]. - The company’s shareholding in related corporations, such as Sun Hung Kai Properties, accounted for 18.73% of the issued share capital as of December 31, 2021[96]. - The company’s shareholding in SmarTone Telecommunications Holdings Limited represented 1.08% of the issued share capital as of December 31, 2021[98]. - As of December 31, 2021, the total number of shares held by directors and senior management represented approximately 1.57% of the issued share capital[94]. Employee and Operational Metrics - The group employed 388 full-time employees as of December 31, 2021, focusing on employee health and safety amid the ongoing pandemic[18]. - Total employee compensation for the period was HKD 127,921,000, compared to HKD 103,570,000 in the previous year, marking an increase of about 23.5%[67]. - The company has implemented strict health and safety measures across all data centers to ensure uninterrupted service during the COVID-19 pandemic[10].

Financial Performance - Revenue from continuing operations increased by 13% year-on-year to HKD 923 million for the period ending December 31, 2020[7]. - EBITDA rose by 17% year-on-year to HKD 662 million for the same period[6]. - Basic profit attributable to shareholders increased by 16% year-on-year to HKD 389 million[6]. - Operating profit for the period was HKD 470 million, compared to HKD 401 million in the same period last year[5]. - Total revenue for the first half of the fiscal year was HKD 923 million, up from HKD 819 million in the previous year[6]. - The group's revenue from continuing operations increased by 13% year-on-year to HKD 923 million, driven by the expansion of hyperscale and cloud customers in the data center business[15]. - Operating profit from continuing operations rose by 17% year-on-year to HKD 470 million, with EBITDA increasing by 17% to HKD 662 million, resulting in an EBITDA margin improvement from 69% to 72%[15]. - Profit before tax was HKD 459,396,000, compared to HKD 380,560,000 in the prior period, reflecting a growth of 20.7%[46]. - Profit attributable to shareholders from continuing operations was HKD 388,661,000, up from HKD 320,812,000, marking a 21.1% increase[46]. - Basic earnings per share from continuing operations was HKD 0.0959, compared to HKD 0.0793 for the same period last year, an increase of 21.0%[46]. - Total comprehensive income for the period was HKD 388,631,000, slightly down from HKD 409,173,000 in 2019[49]. Data Center Business - The data center business experienced strong growth driven by increased demand for network connectivity and cloud services during the COVID-19 pandemic[8]. - MEGA-i data center has become a major hub for network connectivity in Asia, with significant demand from digital industry companies[8]. - The company has established strong relationships with leading cloud service providers, anticipating further growth as cloud applications develop[8]. - The company is focused on high-quality data center services for enterprise and cloud customers, expecting continued demand post-pandemic[8]. - The total floor area of the group's data centers will increase by 100% from 1.4 million square feet to 2.8 million square feet following the completion of new projects in Tsuen Wan and Tseung Kwan O[10][12]. - The group's total power capacity will increase by 200% from approximately 70 MW to over 200 MW, addressing the growing demand for power capacity from customers[10][12]. - The MEGA-i data center's power capacity has been increased by 40% following optimization works, enhancing the group's network connectivity business growth potential[12]. - The group is actively expanding its floor space and power capacity to meet the increasing demand for data center services driven by digitalization and the rollout of 5G applications[10][12]. Financial Position - The group held cash of HKD 303 million as of December 31, 2020, with long-term bank loans amounting to HKD 7.184 billion, resulting in net bank loans of approximately HKD 6.881 billion, a 27% increase from HKD 5.414 billion on June 30, 2020[17]. - The debt ratio as of December 31, 2020, was 254%; excluding the HKD 3.3 billion long-term unsecured shareholder loan from Sun Hung Kai Properties, the ratio would be 171%[17]. - The company's total equity as of December 31, 2020, was HKD 4,029,484, down from HKD 4,325,223 as of June 30, 2020, indicating a decrease of about 6.8%[51]. - The company’s retained earnings increased by HKD 1,225,715 during the period, contributing to the overall equity position[51]. - The company reported a net cash outflow from investing activities of HKD 1,255,295, which is a significant increase from HKD 878,854 in the previous year, indicating a rise of approximately 43%[54]. - The company reported a profit of HKD 388,661 for the six months ended December 31, 2020, compared to HKD 409,738 for the same period in 2019, reflecting a decrease of about 5.1%[51]. - The non-current assets, including property, machinery, and equipment, increased to HKD 15,330,871 from HKD 14,422,719, marking an increase of approximately 6.3%[50]. - The company’s total liabilities decreased to HKD 10,804,430 from HKD 9,401,288, indicating a rise of approximately 14.9%[50]. Employee and Management Compensation - The group employed 387 full-time employees as of December 31, 2020, emphasizing employee health and safety measures in response to the COVID-19 pandemic[18]. - The company incurred total employee compensation of 103,570,000 HKD, an increase from 89,644,000 HKD in 2019, indicating an increase of about 15%[68]. - The total remuneration for key management personnel was HKD 8,004,000 for the period, down 13.1% from HKD 9,208,000 in 2019[104]. - Mr. Fung received HKD 52,500 as remuneration for serving as Vice Chairman and a member of the Board's remuneration and corporate governance committees for the fiscal year ending June 30, 2020[21]. - Mr. Tong, the CEO, received approximately HKD 9,245,000 in total compensation, including HKD 52,500 as director's fee for the fiscal year ending June 30, 2020[22]. - Mr. Chen, as the Executive Director and COO, receives an annual director's fee of HKD 45,000 and a fixed cash remuneration of HKD 2,770,000[25]. - Ms. Liu, as the Executive Director and Business Director, receives an annual director's fee of HKD 45,000 and a fixed cash remuneration of HKD 2,660,000[26]. Corporate Governance and Compliance - The interim results for the six months ending December 31, 2020, were unaudited but reviewed by Deloitte, confirming compliance with Hong Kong accounting standards[126]. - The audit committee consists of four members, including three independent non-executive directors, ensuring adherence to corporate governance codes[127]. - The company confirmed full compliance with the corporate governance code during the six-month period, except for the absence of the chairman at the annual general meeting[129]. - No arrangements were made for directors to benefit from the subscription of shares or bonds during the six-month period ending December 31, 2020[122]. Acquisitions and Disposals - The company completed the acquisition of Branhall Investments Limited for a total consideration of HKD 2,242,534,000, primarily engaged in property investment[89]. - The company also acquired STT Limited for HKD 65,000,000, with non-current assets including property, plant, and equipment valued at HKD 64,691[93]. - The company sold Riderstrack Development Limited for HKD 1,053,568,000, with the main asset being investment properties located in Hong Kong[96]. - The sale of Multi-well Investments Limited generated HKD 754,451,000, also involving investment properties[96]. - The total net assets of the sold subsidiaries amounted to HKD 1,808,019,000, with a loss on sale of HKD 1,100,000[101]. Market and Business Development - The group is actively pursuing new business development and market expansion strategies in response to changing customer and market conditions[16]. - The company has not disclosed any new product developments or market expansion strategies in the current report[46]. - There were no significant mergers or acquisitions reported during the period[46].

Financial Performance - The company's profit attributable to shareholders for the fiscal year ending June 30, 2019, was HKD 865.2 million, an increase of 11%[20] - The underlying profit, excluding other income, rose by 10% to HKD 670.2 million, an increase of HKD 58.7 million[20] - EBITDA increased by 20% year-on-year to HKD 1.0564 billion[20] - Total revenue for the fiscal year was HKD 1.6251 billion, compared to HKD 1.3648 billion in 2018[17] - The operating profit for the fiscal year was HKD 434.5 million, compared to HKD 394.7 million in 2018[12] - The company reported a pre-tax profit of HKD 521.9 million for the fiscal year[14] - The group reported a revenue increase to HKD 8.052 billion, driven by a 19% growth in data center business revenue, primarily from new customer contracts and existing customer revenue growth[21] - EBITDA increased by HKD 1.794 billion, with data center EBITDA rising 22% to HKD 10.070 billion[21] - The company reported a total sales contract value of approximately HKD 145.2 million for ultra-low voltage and ICT systems in the fiscal year[28] - The company reported a profit of HKD 865,194,000 for the year, which is an increase from HKD 776,373,000 in the previous year, marking a growth of about 11.4%[160] Assets and Liabilities - The total assets as of June 30, 2019, were HKD 13.6365 billion, up from HKD 7.0939 billion in 2018[17] - The total liabilities increased to HKD 9.4454 billion from HKD 3.1662 billion in 2018[17] - The company’s total assets as of June 30, 2019, amounted to HKD 10,330,770,000, an increase from HKD 6,147,634,000 in 2018, representing a growth of approximately 68%[159] - The total liabilities were reported at HKD 6,139,625,000, compared to HKD 2,219,899,000 in 2018, reflecting a significant rise of approximately 176%[159] Cash Flow and Financing - The group has cash holdings of approximately HKD 467.8 million and total bank loans of HKD 4.7527 billion, resulting in a debt-to-equity ratio of 103%[21] - The company held cash of approximately HKD 467.8 million as of June 30, 2019, with net loans totaling approximately HKD 4.2849 billion, an increase of 182% year-on-year[29] - The company’s borrowings increased to HKD 2,180,153,000 from HKD 1,983,333,000, reflecting a rise of approximately 10%[159] - Financing activities generated a net cash inflow of HKD 5,375,235,000, compared to HKD 412,683,000 in the previous year, indicating a substantial increase in financing[162] Dividends - The board proposed a final dividend of HKD 0.165 per share, up from HKD 0.151 per share in the previous fiscal year[21] - The company reported a final dividend of HKD 0.165 per share for the year ending June 30, 2019, an increase from HKD 0.151 per share in 2018, totaling HKD 0.165 for the full year[57] - The company's dividend policy aims to provide stable dividend distributions, contingent on financial performance, capital needs, future investment plans, cash flow, and overall business and economic conditions[57] Operational Expansion - The company operates over 280,000 square feet of data center space and has 11 operational data centers[9] - The group is expanding its data center capacity with new land acquisitions (TWTL 428 and TKOTL 131) to meet rising customer demand for high-quality facilities[23] - MEGA-i expansion is progressing well, aimed at providing more data center facilities and power supply to meet increasing customer demand[22] - The company is constructing two new data centers that will add a total of 1.4 million square feet of floor area to its portfolio[27] - The company is expanding its MEGA-i facility to provide more rack space and increase power supply to meet rising demand from new and existing customers[27] Governance and Leadership - The company emphasizes its commitment to environmental, social, and governance practices in line with Hong Kong Stock Exchange regulations[23] - The company has established a service contract with the Executive Director since March 1, 2003, which continues to be effective, reflecting long-term commitment[39] - The company emphasizes performance-based remuneration, with bonuses determined by operational performance and individual contributions[38] - The company has established committees for audit, remuneration, and nomination, enhancing its corporate governance structure[50][51] - The board consists of 14 members, including the chairman, three executive directors, five non-executive directors, and five independent non-executive directors[111] Risk Management - The company has implemented a risk management policy to effectively identify, assess, mitigate, report, and monitor key business risks across all business units[134] - Major risks identified include cybersecurity threats, project progress in data center services, competitive pressures, and talent retention challenges[135] - The audit committee and management reviewed the effectiveness of the risk management and internal control systems for the fiscal year ending June 30, 2019, and found them to be effective and sufficient[137] Compliance and Regulations - The company faced various legal compliance requirements, including the Employment Ordinance and the Personal Data (Privacy) Ordinance, emphasizing the importance of regulatory adherence[59] - The company has implemented specific resources for internal controls and approval processes to ensure compliance with applicable laws and regulations[59] - The company has adopted revised and restated articles of association to align with relevant regulations and reflect changes from transferring its listing from the Growth Enterprise Market to the Main Board[144] Accounting and Financial Reporting - The company has adopted new accounting standards, including HKFRS 15, which did not have a significant impact on the financial performance for the year[169] - The company recognizes revenue upon the transfer of control of goods or services to customers, in accordance with HKFRS 15[193] - Revenue is confirmed over time based on the output method, measuring the value of goods or services transferred relative to the total promised[194] - The company recognizes short-term employee benefits as expenses when the employee provides the service[200]

Financial Performance - The company reported a revenue increase of 18% to HKD 760.015 million for the six months ending December 31, 2018, compared to HKD 641.365 million in the same period last year[5]. - The operating profit rose by HKD 37.6 million to HKD 394.671 million, with EBITDA increasing by 19% to HKD 488.961 million[6]. - The net profit attributable to shareholders was HKD 411.487 million, reflecting a 5% increase from HKD 392.174 million year-on-year[5]. - The company reported a profit attributable to shareholders of HKD 411.5 million for the first half of 2018, benefiting from the growth in its core data center business[9]. - The company reported a total comprehensive income of HKD 411,018,000 for the period, compared to HKD 391,098,000 in the previous year, an increase of 5.1%[37]. - The net profit for the period was HKD 411,487,000, representing a significant increase compared to the previous year's profit of HKD 392,174,000, which is an increase of approximately 4.9%[41]. - The basic earnings per share increased to 10.17 HK cents, up from 9.70 HK cents, marking a 4.8% growth[35]. - The company achieved a profit before tax of HKD 477,428,000 for the same period, after accounting for unallocated corporate expenses and financial costs[72]. Assets and Liabilities - The company held cash of approximately HKD 432.3 million and long-term bank loans of HKD 2.5687 billion as of December 31, 2018[6]. - Total assets as of December 31, 2018, were HKD 6,834,240,000, compared to HKD 6,308,534,000 as of June 30, 2018, indicating a 8.3% increase[38]. - Current liabilities increased to HKD 1,158,698,000 from HKD 946,299,000, representing a 22.4% rise[38]. - The company’s total liabilities exceeded its current assets by HKD 282,808,000 as of December 31, 2018, indicating a need for careful liquidity management going forward[45]. - The company reported a total of HKD 1,030,548,000 in business and other payables as of December 31, 2018, compared to the previous period[89]. Debt and Financing - The debt-to-equity ratio, calculated based on net loans relative to shareholders' equity, was 57%[6]. - The company has secured a six-year unsecured loan of HKD 3.8 billion from Sun Hung Kai Properties for future investments[10]. - The company raised bank loans totaling HKD 582,750,000 during the period, with total outstanding unsecured bank loans at approximately HKD 2,568,699,000 as of December 31, 2018, up from HKD 1,983,333,000 on June 30, 2018[92]. Business Growth and Investments - The data center business saw significant growth, with EBITDA rising 22% to HKD 465.869 million[6]. - The company successfully acquired a site in Tseung Kwan O for a new data center, expected to double its total floor area to approximately 2.8 million square feet[6]. - The company plans to continue investing in enhancing existing facilities and expanding the high-end data center MEGA-i to meet growing customer demand[6]. - The company is actively investing in existing and new infrastructure to drive long-term business development, with a total data center area expected to reach approximately 2.8 million square feet after the completion of new projects[9]. Governance and Management - The company has a governance committee that includes the vice chairman as a member[13]. - The company has established service contracts for its executives that require annual review and are subject to performance evaluations[16]. - The board of directors comprises four executive directors and ten non-executive directors, ensuring a diverse governance structure[120]. - The company emphasizes the importance of independent oversight in its governance structure[26][27][28][29]. Revenue Recognition and Accounting Standards - The company adopted HKFRS 15, which replaced HKAS 18 and HKAS 11, impacting revenue recognition from contracts with customers[48]. - The application of HKFRS 15 did not have a significant impact on the timing and amount of revenue recognized for the six months ended December 31, 2018[51]. - The group recognizes expected credit losses (ECL) for financial assets, including business receivables and contract assets, under HKFRS 9, with the amount updated at each reporting date to reflect changes in credit risk since initial recognition[60]. Shareholding and Stock Options - The company has a stock option plan that allows for options to be exercised after specific time frames, with a total of 19,420,000 options remaining as of December 31, 2018[112]. - The total number of shares held by major shareholders, including Sunco Resources Limited and HSBC Trustee, exceeds 1.7 billion shares, indicating significant ownership concentration[116]. - The company has not granted any stock options under the 2012 stock option plan during the six months ending December 31, 2018[111]. Employee and Talent Management - The company has hired 262 full-time employees as of December 31, 2018, and continues to focus on talent retention and development[11]. - The company’s management compensation amounted to HKD 5,846,000 during the period, compared to HKD 4,342,000 in the previous year[96].