Company Overview - The company holds a 99% stake in Macau Telecommunications Company, which is the only provider of comprehensive telecommunications services in Macau, significantly contributing to the region's development [3]. - As of December 31, 2020, the company operates in 21 countries and regions, employing over 2,500 staff and connecting with over 600 global operators, serving more than 3,000 multinational enterprises and over 40,000 local businesses [3]. - The company aims to provide global communication and ICT services, leveraging its base in mainland China and its operations in Hong Kong and Macau [4]. - The company is recognized as a trusted partner for multinational enterprises and commercial clients in the Asia-Pacific region [2]. Innovation and Technology - The company has developed the world's first mobile data traffic trading platform, "DataMall Free Travel," showcasing its innovation in telecommunications [2]. - The company’s subsidiary, Acclivis Technologies and Solutions, focuses on cloud solutions and has established a strong presence in Singapore, Malaysia, Indonesia, and Thailand [2]. - The company launched a 10Gbps high-speed home broadband service in September 2020, the only one of its kind in the Macau market, enhancing market competitiveness [32]. - The company expanded its global traffic trading platform DataMall, now covering nine countries including Hong Kong, Macau, Taiwan, Singapore, Thailand, South Korea, Indonesia, Malaysia, and Vietnam [32]. - The company launched the "DataHOUSE™ AR Remote Maintenance Service," which won the "Best Digital Transformation Project of the Year" at the Total Telecom Asia Communications Awards [16]. Financial Performance - The company's net profit attributable to shareholders for 2020 was HKD 1.023 billion, representing a year-on-year growth of 2.1% [20]. - The total dividend per share for 2020 was HKD 0.21, reflecting a year-on-year increase of 5.0% [20]. - The group's total revenue for the year ended December 31, 2020, was HKD 8.923 billion, with telecom service revenue increasing by 7.9% to HKD 7.978 billion compared to HKD 7.396 billion last year [60]. - The profit before tax for 2020 was HKD 1,263 million, compared to HKD 1,249 million in 2019, indicating an increase of about 1.1% [118]. - The company reported a significant increase in revenue, achieving a total of $X billion, representing a Y% growth compared to the previous year [188]. Debt and Capital Management - As of December 31, 2020, the group's net debt was HKD 4.349 billion, a decrease of 12.4% compared to the previous year [20]. - The net debt to equity ratio improved to 31% from 35% in 2019, indicating a reduction in financial leverage [23]. - The company repaid approximately 410 million in bank loans during 2020, reducing financial pressure and benefiting from lower interest rates [32]. - The group had a total credit facility of HKD 7,055 million, with HKD 5,902 million drawn and HKD 1,153 million undrawn as of December 31, 2020 [97]. Market Position and Competition - The overall mobile market share of Macau Telecommunications Company reached 44.4%, maintaining its leading position in the market [41]. - The broadband service market share stood at 97.1% by the end of 2020, with residential fiber penetration exceeding 94.7% [43]. - The telecommunications market in Hong Kong and China is becoming increasingly competitive, with new entrants potentially affecting the group's market share [113]. Corporate Governance and Management - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced governance structure [122]. - The company emphasizes accountability, with the board responsible for the overall strategy and long-term development, ensuring alignment with shareholder interests [129]. - The company has established a risk management and internal control system guided by the COSO framework, focusing on identifying and managing risks [158]. - The company is committed to sustainable development and accountability to shareholders and stakeholders [120]. Social Responsibility and Community Engagement - The company is committed to corporate social responsibility and sustainable development, actively participating in community activities and maintaining stable dividends for shareholders [32]. - Charitable donations for the year amounted to approximately HKD 889,000, a decrease from HKD 1,317,000 in 2019 [200]. - The company is committed to nurturing talent within the telecommunications sector in Macau [196]. Future Outlook and Strategic Initiatives - The group plans to expand its 5G network construction and application development, aiming for commercial deployment of 5G services in 2021 [33]. - The company is exploring partnerships to enhance service offerings, targeting G% growth in customer satisfaction metrics [188]. - The management highlighted a commitment to sustainability, aiming for a reduction in operational costs by F% through efficiency improvements [188]. - The company is actively collaborating with industry leaders to develop and provide new services to customers [161].

Financial Performance - Telecom service revenue increased by 11.3% to HKD 4,025 million compared to HKD 3,615 million in the previous period[31] - The company's profit attributable to shareholders increased by 0.2% to HKD 512 million, up from HKD 511 million[31] - EBITDA decreased by 1.6% to HKD 1,232 million from HKD 1,252 million[31] - For the six months ended June 30, 2020, the company's total revenue was HKD 4.384 billion, a slight increase of 0.2% compared to HKD 4.375 billion in the same period of 2019[52] - The company's net profit attributable to shareholders was HKD 512 million, a marginal increase of HKD 1 million compared to HKD 511 million in the same period of 2019[58] - The total comprehensive income for the period was HKD 500 million, down from HKD 507 million in the previous year, indicating a decrease of about 1.38%[109] - The net profit for the period was HKD 519 million, unchanged from the same period in 2019[105] - The group's operating profit before tax was HKD 631 million, remaining stable compared to HKD 632 million in the previous year[103] Revenue Breakdown - Mobile phone and equipment sales revenue decreased by 52.8% to HKD 359 million from HKD 760 million[31] - Revenue from telecommunications services rose by 11.3% to HKD 4,025 million compared to the same period last year[39] - Internet business revenue was HKD 552 million, an increase of HKD 22 million or 4.2% compared to the same period in 2019, driven by a 3.0% increase in average broadband users to over 194,000[64] - International telecom business revenue increased by 39.0% or HKD 327 million, with voice business revenue at HKD 588 million, up 6.1% from the previous year[65] - Corporate business revenue rose by 13.3% to HKD 1.718 billion in the first half of 2020, compared to HKD 1.516 billion in the same period of 2019[66] Operational Highlights - The company completed the first phase of 5G network construction, achieving outdoor full coverage in Macau[26] - The company launched a multi-number SIM service (SIMN) for cross-border mobile applications and banking services[24] - The number of residential fiber users increased by 3.7% and business fiber users grew by 1.6% compared to the end of last year[41] - The average monthly revenue per residential and business user increased by 1.8% and 5.4%, respectively, contributing to higher internet business revenue growth[41] - The company has established new network points in multiple locations in China and Vietnam to enhance its international market presence[41] - The cloud computing service has developed eight major solutions supported by 18 service centers across various regions, including Greater China, North America, and Europe[41] - The company is expanding its ICT services in Southeast Asia, with the "Pacific Internet" brand gaining significant influence in the region[43] Cash Flow and Capital Expenditure - Cash inflow from operating activities was HKD 1.376 billion, an increase of 6.8% compared to HKD 1.288 billion in 2019[75] - The group recorded a net cash inflow of HKD 40 million for the six months ended June 30, 2020[76] - Total capital expenditure for the six months ended June 30, 2020, was HKD 479 million, with HKD 268 million invested in 5G and HKD 73 million for data center renovations[77] - Cash generated from operating activities was HKD 1,433 million, an increase of 9.4% compared to HKD 1,310 million in the same period of 2019[112] Shareholder Information - The interim dividend remained consistent at 5.0 HKD cents per share, unchanged from the same period last year[32] - The company plans to declare an interim dividend of HKD 0.05 per share, consistent with the previous year, resulting in a total of HKD 183 million[145] - The company paid dividends of HKD 550 million to shareholders, an increase from HKD 511 million in the previous year, representing a rise of approximately 7.64%[113] Debt and Liquidity - Net borrowings decreased to HKD 48.23 billion, with the net debt-to-equity ratio dropping from 35% as of December 31, 2019, to 34% as of June 30, 2020[81] - Total borrowings as of June 30, 2020, were HKD 61.68 billion, with HKD 3.41 billion due within the next twelve months[84] - The group maintained cash reserves sufficient to cover HKD 341 million in upcoming borrowings and HKD 265 million in contracted capital commitments[85] - The group plans to manage liquidity risks by maintaining adequate cash reserves and accessing committed credit facilities[88] Employee and Corporate Governance - The group has over 2,500 employees and operates in 21 countries and regions, connecting over 600 operators globally[6] - The group maintained a stable employee count of 2,526 as of June 30, 2020, with 524 employees in Hong Kong and 1,677 in mainland China and Macau[99] - The company is committed to maintaining high standards of corporate governance to enhance investor confidence[177] - The audit committee reviewed the interim report and recommended its adoption by the board[177] COVID-19 Impact - The impact of the COVID-19 pandemic on the group's business and performance has not been significant at this stage, with measures implemented to monitor and mitigate effects[19] - The group will continue to closely monitor the development of the COVID-19 pandemic and evaluate its impact on financial conditions and operational performance[19] - The group has established a pandemic response leadership team to ensure employee safety and health during the COVID-19 crisis[99]

Business Development and Achievements - CITIC Telecom International reported a significant milestone in 2019, launching the DataMall 2.0 platform with soft SIM services[6]. - The company achieved a 99% ownership stake in Macau Telecom, a leading integrated telecom service provider in Macau, enhancing its market position[3]. - CITIC Telecom International's subsidiary, Acclivis, won the Business Eminence Award 2019 for its transformation into a comprehensive ICT service provider[7]. - The company expanded its international collaboration by initiating the "5G International Cooperation Alliance" with several renowned operators[10]. - CITIC Telecom International serves over 3,000 multinational enterprises and more than 40,000 local businesses, demonstrating its extensive market reach[3]. - The group operates in 21 countries and regions, with a network covering over 130 countries and connecting more than 600 operators[3]. - The launch of the new mobile phone authentication technology "IPification" aims to enhance security for smart applications in Macau[10]. - Acclivis Technologies and Solutions Pte. Ltd. is recognized as a trusted advisor for digital transformation projects in Southeast Asia[2]. - The company has established data centers and cloud computing centers in major Southeast Asian cities, supporting its regional operations[2]. - The company received multiple awards in 2019, including the "Best Cloud Service Partner of the Year" from VMware[15]. Financial Performance - The company's net profit attributable to shareholders for 2019 was HKD 1,002.2 million, representing a year-on-year increase of 5.4%[24]. - Total revenue for 2019 was HKD 9,014.0 million, a decrease of 4.8% compared to HKD 9,464.0 million in 2018[27]. - Telecommunications service revenue increased by 3.6% to HKD 7,396.4 million from HKD 7,139.1 million in the previous year[27]. - Mobile phone and equipment sales revenue decreased by 30.4% to HKD 1,617.6 million from HKD 2,324.9 million in 2018[27]. - EBITDA for 2019 was HKD 2,493.6 million, an increase of 13.7% from HKD 2,192.3 million in 2018[27]. - The company declared a total dividend of HKD 20.0 cents per share for 2019, reflecting an 11.1% increase from HKD 18.0 cents in 2018[24]. - As of December 31, 2019, the company's net debt was HKD 4,965.1 million, a reduction of 14.5% from HKD 5,808.4 million in the previous year[27]. - The net capital debt ratio decreased to 35% from 40% in the previous year[27]. - The total assets of the company increased by 2.4% to HKD 18,389.3 million from HKD 17,965.2 million in 2018[27]. - The group's profit attributable to shareholders was HKD 1.022 billion, a 5.4% increase from HKD 951 million in the previous year[32]. Market Position and Strategy - The group maintained a leading position in the Macau mobile market with a market share of 41% as of December 2019[45]. - The 4G+ customer penetration rate reached 99% by year-end 2019, providing a solid foundation for future 5G development[45]. - The group is actively participating in the construction of a smart city in Macau, focusing on 5G network development to enhance mobile communication services[40]. - The data center business is identified as a key strategic direction for future growth, with plans to enhance product and service offerings[40]. - The group aims to establish a comprehensive sales system for the data center business, including direct sales, agency channels, and cooperative development[40]. - The group is focused on building a first-class management, engineering, technology, and business team to drive growth and innovation[39]. - The group plans to expand into international markets while strengthening its presence in mainland China and the Greater Bay Area[39]. Risk Management and Compliance - The company is committed to enhancing its risk management mechanisms to identify and assess risks at all levels, particularly in light of challenges posed by the COVID-19 pandemic[117]. - The company has established a risk management policy to assist operational units in implementing risk management and internal control procedures[162]. - The risk management system is guided by the COSO framework and aims to enhance operational efficiency while ensuring compliance with relevant laws and regulations[161]. - The group faces operational risks related to system failures, data processing errors, and cybersecurity threats, which could negatively impact reputation and customer retention[111]. - Security or privacy breaches could lead to significant costs for corrective measures and damage the group's reputation, affecting revenue and business prospects[112]. - The group has implemented a risk alert mechanism to identify and assess emerging risks and significant changes from internal or external factors[162]. Corporate Governance - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced governance structure[125]. - The company emphasizes the importance of maintaining a high attendance rate at board meetings to ensure effective oversight of its operations[127]. - The company has established a policy for the re-election of directors, ensuring that one-third of the board stands for re-election at each annual general meeting[137]. - The board's role includes reviewing management performance and overseeing the group's risk and internal controls[138]. - The company emphasizes board diversity, considering various factors such as skills, experience, and gender in its composition[154]. - The company encourages continuous professional development for directors to enhance their knowledge and skills[143]. Innovation and Technology - The group is committed to digital transformation and upgrading, integrating AI and deep learning technologies to optimize business value and risk management capabilities[34]. - The group is actively exploring partnerships with various research institutions to develop innovative projects, including AR technology applications[34]. - The company is expanding its digital applications in various sectors, including e-health and e-government, to promote the "Digital Macau" initiative[194]. - The CEO has been instrumental in advancing the core network innovations, ensuring continuous development in Macau's network infrastructure[194]. - The company achieved 100% fiber network coverage in Macau by 2015, positioning it among the few advanced cities globally with full fiber network access[194]. Shareholder Engagement - The company emphasizes effective communication with shareholders to provide a clear assessment of its performance and accountability to the board[174]. - The annual general meeting provides a practical platform for direct communication between the board and shareholders[177]. - The company allows shareholders to propose resolutions for circulation at the annual general meeting if they meet certain criteria[182]. - Shareholders holding at least 5% of the total voting rights can request a general meeting under the Companies Ordinance[180].

Company Operations - The company operates in 21 countries and regions, serving over 3,000 multinational enterprises and more than 40,000 local businesses[3]. - The company holds a 99% stake in Macau Telecommunications, which is the only provider of comprehensive telecommunications services in Macau[2]. - Acclivis Technologies and Solutions Pte. Ltd. has expanded its operations in Southeast Asia, focusing on cloud solutions and digital transformation projects[2]. - The company has over 2,500 employees and connects with more than 600 operators globally[3]. Financial Performance - Total revenue for the company was HKD 4,375.2 million, a decrease of 11.0% from HKD 4,913.8 million year-on-year[15]. - Profit attributable to shareholders was HKD 511.1 million, reflecting a growth of 4.6% from HKD 488.8 million in the previous year[8]. - EBITDA increased by 15.8% to HKD 1,251.1 million, compared to HKD 1,080.6 million in the same period last year[8]. - Basic earnings per share rose to 14.1 HKD cents, up 2.2% from 13.8 HKD cents year-on-year[16]. - The interim dividend declared was 5.0 HKD cents per share, representing a 25.0% increase from 4.0 HKD cents in the previous year[16]. Revenue Breakdown - Telecommunications service revenue (excluding equipment and mobile phone sales) reached HKD 3.653 billion, a growth of 2.7% compared to the first half of 2018, driven by growth in almost all major business segments[22]. - The mobile business revenue decreased by 31.5% to HKD 1,376.5 million, primarily due to a significant drop in equipment and mobile phone sales[27]. - The internet business revenue, including data center income, was HKD 529.9 million, an increase of 8.3% or HKD 40.5 million year-on-year[29]. - Corporate business revenue increased by 3.7% to HKD 1.591 billion in the first half of 2019, driven by growth in Macau casino and resort project revenues and stable growth in mainland China corporate business[31]. Market Position - The group holds a 44.5% market share in the 4G market in Macau, with ongoing growth in roaming services[17]. - The group held approximately 42.9% market share in the Macau mobile market as of June 30, 2019, down from 43.7% at the end of 2018[29]. - The group’s broadband market penetration rate was approximately 88.2% as of June 30, 2019, slightly down from 89.0% at the end of 2018[29]. Assets and Liabilities - Total assets increased by 2.6% to HKD 18,434.3 million from HKD 17,965.2 million at the end of the previous year[11]. - The company reported a decrease in total liabilities to HKD 7,014,592 from HKD 6,922,626 in the previous year[66]. - The net capital debt ratio improved to 38%, down from 40% at the end of the previous year[11]. Cash Flow and Capital Expenditure - Operating cash inflow was HKD 1.288 billion, representing a 19.4% increase from HKD 1.079 billion in the same period last year[43]. - Total capital expenditure for the first half of 2019 was HKD 153.8 million, primarily for data center expansion and network system upgrades[44]. - Cash and bank deposits as of June 30, 2019, were HKD 1,164.7 million, sufficient to cover upcoming borrowings due within the next 12 months of HKD 357.9 million[51]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance investor confidence and protect shareholder interests[160]. - The company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2019, except for one instance of absence at the annual general meeting[160]. - The financial report for the six months ended June 30, 2019, was reviewed by the audit committee and independent auditors[160]. Technology and Innovation - The company has established a 5G International Cooperation Alliance with several international operators to enhance its 5G capabilities[5]. - The company launched the DataMall 2.0 platform, enhancing its mobile data services and prepaid card offerings[5]. - The company has implemented a new mobile phone authentication technology called "IPification" to enhance security for smart applications in Macau[5]. Environmental and Social Responsibility - The company emphasizes corporate social responsibility as a core strategy and has not made significant changes to its human resources management policies in the past six months[61]. - The company is committed to environmental protection and has established policies for sustainable development[61]. Stock Options and Shareholder Information - The company adopted a stock option plan on May 17, 2007, which remains effective until May 16, 2017, with a total limit of 333,505,276 shares, representing 10% of the issued shares as of the approval date[140]. - The company issued a total of 65,001,000 shares during the six months ended June 30, 2019, due to the exercise of stock options[159]. - Major shareholders include China CITIC Group Limited, holding 2,129,345,175 shares, representing 58.30% of the issued shares[157].

Company Operations and Services - The company operates in 21 countries and regions, serving over 3,000 multinational enterprises and more than 40,000 local businesses[4] - The company holds a 99% stake in Macau Telecommunications, which is the only provider of comprehensive telecommunications services in Macau[4] - The company has developed the world's first mobile data traffic trading platform, "DataMall Free Travel," and offers multi-number SIM cards[3] - Acclivis Technologies and Solutions Pte. Ltd. has been recognized as a leading IT service provider in the region, focusing on cloud solutions and managed services[3] - The company has expanded its mobile virtual network operator roaming coverage to Vietnam and launched 4G data package services[33] - The company has established data centers and cloud computing centers in major Southeast Asian cities, enhancing its service capabilities[3] - The company is committed to digital transformation projects and smart solutions for government and enterprises in the region[3] - Macau Telecom launched the DataMall 2.0 platform, enhancing 4G services for users[38] - Macau Telecom initiated 5G mobile network technology testing, aiming to provide commercial services by 2020[42] - Macau Telecom's data center in Hong Kong was officially opened, recognized as the only government-approved overseas data center in Macau[42] - Macau Telecom partnered with Tencent to deepen collaboration in cloud computing, big data, IoT, and AI applications[42] Financial Performance - The company's profit attributable to shareholders for 2018 was HKD 951 million, representing a year-on-year increase of 7.9%[46] - The total revenue for 2018 was HKD 9,464 million, an increase of 27.0% compared to the previous year[57] - The service revenue (excluding sales of equipment and mobile phones) increased by 12.6% year-on-year[57] - The basic earnings per share for 2018 was HKD 26.7, up 7.2% from 2017[57] - The company declared a total dividend of HKD 18.0 per share for 2018, an increase of 12.5% year-on-year[57] - Net debt as of December 31, 2018, was HKD 5,810 million, a decrease of 6.2% from the previous year[52] - The group achieved a 12.9% increase in fiber internet customers by the end of 2018, with commercial customer fiberization reaching 100% and residential broadband fiberization at 87%[59] - The number of cloud data centers reached 18 by the end of 2018, reflecting the group's accelerated global cloud data center development[59] - The revenue from the A2P SMS business saw significant growth compared to the previous year, contributing to the overall internetization of traditional telecom services[59] - The "DataMall Free Travel" platform's revenue exceeded 10 million, showcasing the success of the group's internet-based business systems[59] Market Position and Strategy - The group maintained a leading market share of 43.7% in the Macau mobile market as of December 2018, with a 4G customer penetration rate of 98%[71] - The group expanded its international roaming market, achieving 4G roaming coverage in 172 countries and regions, and established agreements with over 290 overseas operators for wholesale data roaming rates[72] - The group plans to expand its data center scale and enhance platform business efficiency in 2019, responding to market demand[60] - The group aims to become a one-stop ICT service provider in Southeast Asia, leveraging Singapore as a base to serve multinational enterprises in the region[60] - The group will focus on developing new technologies such as 5G, smart cities, IoT, AI, big data, and cloud computing to drive innovation and business transformation[61] - The group is positioned to capitalize on opportunities in the Greater Bay Area, aligning with the "Digital Macau" smart city initiative[60] Awards and Recognition - The company has received multiple awards, including "Outstanding ICT Service Provider 2017" from Huafu Finance and "Best IT Comprehensive Service Partner" from Sing Tao Daily[33] - Acclivis was awarded the "Best Strategic Partner Award" by Equinix, recognizing its collaboration in providing strategic insights[37] - CPC received multiple awards, including "Best Managed Service Provider" at the Telecom Asia Awards 2018[38] - CPC was recognized as one of the "Top 10 Best Data Center Service Companies" by APAC CIO Outlook in 2018[42] - CPC won the "Best Cloud Service Provider" award at the NetworkWorld Asia Readers' Choice Product Excellence Awards 2018[42] - Acclivis was named one of the business champions by Cisco in 2018, highlighting its excellence in the ICT sector[41] Governance and Corporate Structure - The board consists of four executive directors and five non-executive directors, with three being independent non-executive directors, ensuring a diverse governance structure[156] - The board's attendance rate for meetings was high, indicating strong engagement and commitment from directors[153] - The company emphasizes continuous improvement in corporate governance practices to align with the latest trends[145] - The company established a capital expenditure review committee to evaluate management's capital investment proposals[160] - The remuneration committee consists of four members, all of whom are non-executive directors, with three being independent non-executive directors[167] - The audit committee also comprises four members, with three being independent non-executive directors[167] - The company encourages all directors to participate in continuous professional development to enhance their knowledge and skills[165] Risk Management and Compliance - The company is committed to enhancing its risk management mechanisms to identify and assess risks at all levels, which is crucial for maintaining operational integrity[141] - The group has established a risk management policy to identify, assess, and mitigate various risks, including strategic, market, financial, legal, and operational risks[183] - The management conducts a semi-annual review of overall business risks and submits written reports to the audit committee regarding risk management effectiveness[187] - The group faces intense market competition, which may negatively impact revenue and profits, prompting a commitment to leverage new technologies for service transformation[185] - Cybersecurity threats are increasing, necessitating continuous updates to security controls and employee training on data security and privacy awareness[185] Shareholder Communication - The company emphasizes effective communication with shareholders to provide a clear assessment of its performance[196] - The company has adopted the "Code of Conduct for Securities Transactions by Directors" and all directors complied fully with the standards in 2018[192] - Shareholders holding at least 5% of the total voting rights can request a general meeting under the Companies Ordinance[197] - The company allows shareholders to submit queries and concerns to the board through the company secretary[199] - The company is committed to ensuring that no selective disclosure of price-sensitive information occurs[196]