格隆汇8月6日丨京信通信(02342.HK)宣布，公司将于2025年8月19日（星期二）举行董事会会议，藉以 （其中包括）批准刊发公司及其附属公司截至2025年6月30日止六个月的中期业绩公告，以及考虑派发 中期股息（如有）。 ...

香港交易及結算所有限公司 、 香港聯合交易所有限公司及新加坡證券交易所有限公司對 本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 承董事會命 京信通信系統控股有限公司 執行董事 張飛虎 香港，二零二五年八月六日 於本公告刊發日期，董事會由以下執行董事組成：霍東齡先生、張躍軍先生、霍欣茹女 士及張飛虎先生；由以下非執行董事組成：易磊先生；及由以下獨立非執行董事組成： 伍綺琴女士、王洛琳女士及張智強先生。 COMBA TELECOM SYSTEMS HOLDINGS LIMITED （香港股份代號：2342） （新加坡股份代號：STC） 董事會會議召開日期 京信通信系統控股有限公司（「本公司」）之董事會（「董事會」）謹此宣 佈，本公司將於二零二五年八月十九日（星期二）舉行董事會會議，藉以（其 中包括）批准刊發本公司及其附屬公司截至二零二五年六月三十日止六個月之 中期業績公告，以及考慮派發中期股息（如有）。 京 信 通 信 系 統 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 4,528.3 million, a decrease of 24.3% from HKD 5,981.9 million in 2023[22]. - Gross profit for 2024 was HKD 1,171.1 million, down 29.5% from HKD 1,662.7 million in 2023, resulting in a gross margin of 25.9%, a decline of 1.9 percentage points[22]. - The operating loss for 2024 was HKD 509.2 million, compared to an operating profit of HKD 108.6 million in 2023, indicating a significant decrease in operational performance[22]. - Net loss attributable to shareholders for 2024 was HKD 564.2 million, a substantial drop from a profit of HKD 6.7 million in 2023, reflecting a net profit margin of -12.5%[22]. - Total assets decreased by 17.7% to HKD 7,439.6 million in 2024 from HKD 9,039.5 million in 2023[23]. - The company reported an average return on equity of -18.8% in 2024, down from 0.2% in 2023, indicating a decline in profitability[23]. - Revenue from China Mobile Group decreased by 32.8% to HKD 747,056,000, accounting for 16.5% of total revenue[46]. - Revenue from China Unicom Group decreased by 76.1% to HKD 178,750,000, representing 3.9% of total revenue[46]. - Revenue from China Telecom Group increased by 9.2% to HKD 440,063,000, making up 9.7% of total revenue[47]. - International revenue decreased by 7.9% to HKD 2,208,117,000, but still accounted for 48.8% of total revenue[47]. - Revenue from base station antennas and subsystems decreased by 25.3% to HKD 1,912,775,000, accounting for 42.2% of total revenue[49]. - Revenue from network systems decreased by 21.7% to HKD 874,837,000, representing 19.3% of total revenue[49]. - Revenue from services decreased by 42.9% to HKD 935,042,000, making up 20.7% of total revenue[49]. - Other income and gains decreased by 25.7% to HKD 129,351,000, accounting for 2.9% of total revenue[51]. - The company will not declare a final dividend for the year, consistent with the previous year[59]. Innovation and Product Development - The company launched the ComFlex MAX low-power product, achieving significant order growth in multiple international markets[26]. - The company introduced the Green Antenna 2.0, receiving high recognition from domestic operators and winning the first centralized procurement project for green base station antennas in China[27]. - The newly launched green antenna FPTP2.0 improved energy conversion efficiency by over 20%[42]. - The company introduced the industry's first passive IoT system prototype and networking solution, leading innovation in 5G-A technology[32][42]. - The group launched the industry-leading high-frequency, high-power indoor distribution coverage series products, enabling low-cost and efficient simultaneous upgrades of multi-operator network signals[63]. - The group is actively exploring new business opportunities in the 5G sector, including the launch of a full range of mobile robots and unmanned forklift products, with applications in key industries such as 3C, pharmaceuticals, automotive, and textiles[68]. - The group has established a comprehensive smart computing platform, FLeX5, integrating 5G networks, IoT, MEP, and AI, providing tailored solutions for various industries, including smart mining and smart warehousing[64]. Corporate Governance - The board consists of seven directors, with four being executive directors and three independent non-executive directors, ensuring a balance of skills and experience relevant to the company's operations[115]. - The company has adopted the standards for securities trading by directors as outlined in the Hong Kong Listing Rules, confirming compliance from January 1, 2024, to the date of the report[114]. - The audit committee reviews the effectiveness of the internal control system annually, concluding that the risk management and internal control systems are effective and adequate[113]. - The company emphasizes high standards of corporate governance to ensure transparency and accountability, which is crucial for protecting shareholder interests[112]. - The company has established a robust governance framework, with all members of the nomination, remuneration, and audit committees being independent non-executive directors to ensure independence in decision-making[112]. - The company has been recognized for its commitment to corporate governance principles and has adhered to the relevant codes and guidelines since January 1, 2024[112]. - The company’s senior management team has significant industry experience, with members holding various professional qualifications and leadership roles in industry associations[109]. - The company has a clear division of responsibilities between the chairman and the CEO[121]. - The independent non-executive directors are appointed for a fixed term of no more than three years[122]. - The board aims to maintain a minimum female representation of 27% and increase it to approximately 33% by 2033[134]. - The company has set measurable goals for board diversity and will review these annually to ensure effectiveness[132]. Employee and Safety Management - The total number of employees is 4,349, with 3,069 males and 1,280 females, leading to a female representation of about 29%[133]. - The employee turnover rate for those under 30 years old is 4.87%, while for those aged 31-40 it is 7.30%[190]. - The company has achieved zero work-related fatalities in the past three years, including the reporting period[194]. - A total of 1,115 employees received fire safety training, significantly improving their safety awareness[194]. - The company conducted 49 health and safety training sessions in 2024, enhancing overall employee safety awareness[197]. - The organization has established a long-term incentive framework to enhance employee satisfaction with compensation[184]. - The employee benefits package includes competitive salaries, insurance contributions, and statutory leave entitlements[184]. - The group has established a comprehensive safety management system, including procedures for safety and environmental protection, with 100% of responsible persons signing safety responsibility agreements[198]. - The group emphasizes long-term career development for employees, providing dual career paths and linking compensation and promotions to experience, ability, and performance[199]. - In 2024, the training participation rate for male and female employees across all levels reached 100%[199]. Environmental and Social Responsibility - The company aims to integrate sustainable development and social responsibility into its corporate culture[165]. - The company achieved EcoVadis silver rating in the 2024 corporate social responsibility assessment, reflecting its commitment to sustainable development[174]. - The company has implemented an ISO14001 environmental management system to ensure compliance with environmental regulations and control emissions[175]. - The company has maintained zero fines for air emissions and ensures that all production areas comply with environmental impact assessments[175]. - The company categorizes waste into hazardous and non-hazardous types, ensuring 100% compliance in the disposal of non-hazardous waste[176]. - The company actively engages with stakeholders through various communication channels to enhance transparency and confidence in its sustainable development efforts[171]. - The company focuses on reducing environmental impacts throughout the product lifecycle and integrates green, low-carbon development concepts into all operational processes[170]. - The company has not reported any significant violations of laws regarding emissions and waste disposal during the reporting period[174]. - The company emphasizes the importance of energy conservation and environmental protection in its operational management strategies[170]. - The company collaborates with partners, customers, and suppliers to seek sustainable green and low-carbon business environments[170]. - Greenhouse gas emissions increased by 150.34% to 1,892 thousand tons in 2024 from 756 thousand tons in 2023[177]. - Energy consumption decreased by 19% year-on-year, while water consumption decreased by 14% year-on-year[179]. - The company achieved a total of 2.03 million kWh of green electricity generation in 2024, resulting in a cost reduction of approximately 1.84 million HKD[179]. - Non-hazardous waste increased by 52.64% to 722 tons in 2024 from 473 tons in 2023[177]. - The company aims to halve total greenhouse gas emissions by 2030 in accordance with SBTi standards[178]. - The company implemented a distributed photovoltaic power generation project, enhancing renewable energy usage[179]. - The company is focusing on reducing energy consumption through technological innovations and improving product efficiency[178]. - The company is actively responding to climate change issues and enhancing its carbon emission management capabilities[183].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 4.53 billion, a decrease of 24.5% from HKD 5.98 billion in 2023[5] - Gross profit was HKD 1.17 billion, down 29.5% from HKD 1.66 billion in 2023, with a gross margin of 25.9%, compared to 27.8% in the previous year[5] - Shareholders' loss amounted to HKD 564.19 million, a significant decline from a profit of HKD 6.70 million in 2023[5] - Operating cash flow was HKD 339.44 million, down 30.9% from HKD 492.72 million in 2023[5] - Total assets decreased by 17.7% to HKD 7,439.6 million in 2024 from HKD 9,039.5 million in 2023[34] - The average return on equity was -18.8% in 2024, a decline of 19.0 percentage points from 0.2% in 2023[34] - The group achieved total sales revenue of HKD 452,826,000 in 2024, a decrease of 24.30% compared to HKD 598,197,000 in 2023[189] Revenue Breakdown - Revenue from China Mobile decreased by 32.8% to HKD 747,056,000, accounting for 16.5% of total revenue, down from 18.6%[58] - Revenue from China Unicom decreased by 76.1% to HKD 178,750,000, representing 3.9% of total revenue, down from 12.5%[58] - Revenue from China Telecom increased by 9.2% to HKD 440,063,000, accounting for 9.7% of total revenue, up from 6.7%[59] - International revenue accounted for 48.8% of total revenue, despite a 7.9% decrease to HKD 2,208,117,000[59] Research and Development - The company has applied for approximately 5,900 patents globally, indicating a strong focus on R&D[15] - R&D expenses decreased by 8.2% to HKD 409,436,000, representing 9.0% of total revenue, up from 7.5%[64] - The company launched the ComFlex MAX low-power product, achieving significant order growth across multiple markets[37] - The company aims to enhance new business development and maintain product innovation to meet evolving market demands[72] Corporate Governance - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balance of skills and experience suitable for the company's business[127] - The company emphasizes high levels of corporate governance to ensure transparency and accountability, which is crucial for the development of the group and the protection of shareholder interests[124] - The audit committee reviews the effectiveness of the internal control system annually, concluding that the risk management and internal control systems are effective and sufficient[125] - The company has adopted the standard code of conduct for securities trading by directors as per the Hong Kong Listing Rules, with all directors confirming compliance[126] Environmental, Social, and Governance (ESG) Initiatives - The company aims to minimize environmental impact throughout the entire product lifecycle, focusing on green and low-carbon development[182] - The company has committed to aligning its operations with science-based carbon targets (SBTi) to address climate change[182] - The company received the EcoVadis silver medal in the 2024 corporate social responsibility assessment[186] - The group aims to achieve a 50% reduction in total greenhouse gas emissions by 2030, in line with the SBTi standards[190] Employee and Workforce Management - The total number of employees is 4,349, with 3,069 males and 1,280 females, resulting in a female representation of approximately 29%[145] - The company aims to maintain a minimum female representation of 27% at the board level and 30% at the employee level, with targets to increase to approximately 33% and 35% by 2033[146] - The management structure in 2024 includes 332 middle management, 234 lower management, and 28 entry-level positions[199] - The company is committed to enhancing its employee diversity and inclusion strategies moving forward[199] Strategic Partnerships and Market Expansion - The company aims to expand its market presence through innovative technologies and strategic partnerships, including AI smart traffic projects[46] - The company continues to strengthen its stable cooperation with international mobile operators and leading telecom equipment manufacturers to provide advanced 5G application solutions globally[79] - The company is actively exploring innovative business opportunities in the "5G + vertical industry applications" sector to contribute to revenue growth[80] Financial Management and Cost Control - Total employee cost for the year was HKD 1,130,918,000, an increase from HKD 1,070,859,000 in the previous year[100] - Financing costs decreased significantly by 42.7% to HKD 31,264,000, making up 0.7% of total revenue[67] - Cost management strategies have been implemented, resulting in a reduction of operational expenses by K%[109] Shareholder Engagement - The company has adopted a shareholder communication policy to enhance transparency and accountability since March 19, 2012[164] - The company encourages shareholder participation in general meetings and allows proxy voting[171] - The company held a total of eight board meetings and one annual general meeting during the year, with all directors achieving high attendance rates[128]

Comba 股份代號 Stock Code : 香港 Hong Kong : 2342 新加坡 Singapore : STC Persistent Focus 繼往開來 凝心聚力 Innovation Brilliant 創新發展 再創煇煌 5G 2024 Interim Report 中期報告 目錄 2 公司資料 3–25 管理層討論與分析 26 中期綜合損益表 27 中期綜合全面收入表 28–29 中期綜合財務狀況表 30–31 中期綜合權益變動表 32–34 中期綜合現金流量表 35–80 中期簡明綜合財務報表附註 (6 a 5G 公司資料 | --- | --- | |---------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------| | 董事會 執行董事 霍東齡 （主席） ...

Financial Performance - Revenue decreased by 27.4% to HKD 2,343 million (2023: HKD 3,228 million) [1] - Shareholders' loss amounted to HKD 158 million (2023: profit of HKD 112 million) [1] - Basic and diluted loss per share was HKD 5.73 (2023: profit of HKD 4.04) [2] - The company reported a net loss of HKD 157,282 million for the period [3] - The group reported a pre-tax loss of HKD 555,920,000 for the six months ended June 30, 2024, compared to a profit of HKD 501,492,000 in the same period of 2023 [24] - The group reported a loss attributable to equity holders of HKD 158,433,000, compared to a profit of HKD 112,178,000 in the same period last year [58] Revenue Breakdown - Revenue for the wireless telecommunications network systems and services segment was HKD 2,261,115 thousand, while the operator telecommunications services segment generated HKD 82,340 thousand, totaling HKD 2,343,455 thousand for the six months ended June 30, 2024 [14] - Revenue for the six months ended June 30, 2024, was HKD 2,343,455,000, a decrease of 27.5% compared to HKD 3,228,189,000 for the same period in 2023 [19] - Revenue from domestic customers in China was HKD 1,576,903,000, down 25.8% from HKD 2,125,601,000 in the previous year [15] - Revenue from the Asia-Pacific region (excluding China) was HKD 291,351,000, a decline of 38.7% from HKD 475,562,000 [15] - Revenue from major customers accounted for 18.2%, 12.5%, and 5.4% of total group revenue, compared to 19.3%, 16.3%, and 6.6% in the previous year [17] Cost and Expenses - The cost of goods sold and services provided was HKD 1,665,066,000, down from HKD 2,349,923,000, reflecting a decrease of 29.1% [24] - Total other income and gains decreased to HKD 65,232,000 from HKD 186,821,000, a decline of 65.1% [22] - The group’s employee benefits expenses increased to HKD 555,920,000 from HKD 501,492,000, reflecting a rise of 10.8% [24] - The financing costs for the six months ended June 30, 2024, totaled HKD 13,505,000, a decrease of 55.2% compared to HKD 30,107,000 for the same period in 2023 [26] - The total tax expense for the six months ended June 30, 2024, was HKD 14,610,000, significantly lower than HKD 56,520,000 for the same period in 2023, reflecting a reduction of 74.1% [28] Assets and Liabilities - Non-current assets totalled HKD 2,222,996 million as of June 30, 2024, down from HKD 2,578,197 million [4] - Current assets decreased to HKD 6,507,240 million from HKD 6,830,828 million [4] - Total equity attributable to shareholders decreased to HKD 3,274,258 million from HKD 3,581,530 million [5] - Non-current liabilities increased to HKD 515,441 million from HKD 315,650 million [5] - Total assets amounted to HKD 8,730,236 thousand, with segment assets for wireless telecommunications at HKD 8,139,914 thousand and operator telecommunications at HKD 1,019,573 thousand [14] Operational Highlights - The company is engaged in research, development, manufacturing, and sales of wireless telecommunications network systems and services, as well as providing related engineering services and telecommunications services [1] - The company has maintained its accounting policies consistent with those used in the annual financial statements for the year ended December 31, 2023 [9] - The company has not reported any impact from the adoption of revised Hong Kong Financial Reporting Standards on its financial position or performance [10] Market and Strategic Developments - The company continues to upgrade its 5G network solutions to meet evolving market demands despite global uncertainties [42] - The company has maintained a leading position in the base station antenna market through continuous R&D innovation and patent inventions, enhancing key technologies and product competitiveness [62] - The company has upgraded its new generation 2.0 version of the "Green Antenna Solution" to meet the demand for low-carbon network construction, covering various scenarios including urban and rural areas [63] - The company has introduced a series of indoor distribution coverage products that have gained growth in multiple global regions, helping operators significantly reduce construction costs and system power consumption [65] - The group actively expanded its international market presence, focusing on innovative product development and maintaining stable partnerships with key international mobile operators [70] Employee and Governance - The company employed approximately 4,800 employees as of June 30, 2024, down from 5,100 employees as of December 31, 2023 [83] - The company provided training to employees to enhance their skills and professional knowledge [83] - The company has adopted a competitive compensation plan for its employees in accordance with industry practices and regulations [83] - The audit committee reviewed the accounting standards and practices adopted by the company and found no objections regarding the interim financial statements [88] - The company has complied with all relevant corporate governance codes and standards during the period [86]

Financial Performance - The company's total revenue for 2023 was HK$5,981.97 million, a decrease of 6.01% compared to HK$6,364.68 million in 2022[27] - The company repurchased a total of 39,858,000 shares in 2023, with a total payment of HKD 59,722,000[139] - The company recorded goodwill of HKD 233 million and intangible assets of HKD 420 million[187] - Inventory provision accounts for 14% of total assets, with significant management judgment involved in estimating obsolete and slow-moving inventory[158] - Trade receivables represent 37% of total assets as of December 31, 2023, with impairment assessed using a forward-looking expected credit loss model[158] - The company conducts annual impairment tests on goodwill, with future cash flow assumptions reviewed and key assumptions like discount rates and terminal growth rates tested[164] - The company evaluates the appropriateness of changes in the useful life of assets annually[163] Environmental Impact and Sustainability - Greenhouse gas emissions in 2023 were 756,000 tons of CO2 equivalent, an increase of 61.25% compared to 1,384,000 tons in 2022[27] - The company's greenhouse gas emission intensity decreased by 41.77% to 1.26 tons per HK$10,000 of revenue in 2023[27] - The company's air pollutant emissions decreased by 10.87% for nitrogen oxides (NOx) but increased by 14.94% for sulfur dioxide (SOx) and 39.08% for particulate matter (PM) in 2023 compared to 2022[27] - The company's wastewater discharge increased by 40.07% to 149,501 tons in 2023 compared to 106,736 tons in 2022[27] - The company's hazardous waste disposal increased by 100% to 12 tons in 2023 compared to 6 tons in 2022[27] - The company's direct greenhouse gas emissions decreased by 9.66% in 2023 compared to 2022[27] - The company's energy-related indirect greenhouse gas emissions decreased by 30.82% in 2023 compared to 2022[27] - The company's other indirect greenhouse gas emissions decreased by 45.59% in 2023 compared to 2022[27] - The company does not discharge industrial wastewater during production and manages waste by categorizing it into non-hazardous and hazardous waste, with hazardous waste being professionally recycled by qualified companies[48] - The company measures greenhouse gas emissions using models such as EMFAC-HK and MOBILE6, covering direct emissions (Scope 1), indirect emissions from energy consumption (Scope 2), and other indirect emissions (Scope 3)[49] - The company focuses on controlling electricity consumption growth by increasing daily inspection frequency and organizing energy-saving activities to reduce excess lighting and improve employee awareness of energy conservation[51] - The company closely monitors extreme weather conditions such as typhoons and extreme cold, upgrading and optimizing eco-friendly products to mitigate the impact of climate change on product performance and operations[54] - The company adheres to green and low-carbon development principles, using low-loss, high-efficiency network technologies and eco-friendly materials to provide green 5G macro station solutions[75] - The company has implemented specific energy-saving and emission-reduction measures, promoting green office practices and using new technologies, materials, and processes to reduce energy consumption[83] - The company has set scientific environmental and energy consumption goals, continuously evaluating and improving its operations to enhance compatibility with the environment[84] - The company actively responds to the national "dual carbon" strategy, focusing on climate change issues and implementing measures to improve climate risk management[85] Employee Management and Development - The company's workforce consisted of 3,566 male and 1,518 female employees as of December 31, 2023, with a female ratio of approximately 30%[6] - The company adjusts its annual incentive model to enhance employee satisfaction, particularly for core positions, by improving the long-term incentive system and optimizing flexible benefits[56] - The company conducted 5 emergency drills in 2023, including fire drills and training for heatstroke and food poisoning, to improve employee emergency response capabilities[62] - The company provides comprehensive onboarding training for new employees, covering occupational health and safety, corporate culture, and business knowledge to help them integrate quickly[66] - The company uses a three-tier training system, including on-the-job training and skill competitions, to enhance employee professional capabilities and support business stability[68] - The company has achieved zero workplace fatalities and zero fire incidents in the past three years, significantly improving employee safety[90] - The company has established a comprehensive safety management system, including procedures for construction project safety, fire safety, and transportation safety[91] - The company provides employees with competitive compensation and benefits, including insurance and enterprise annuity systems, and ensures compliance with employment-related laws and regulations[87][88] - The company offers dual career development paths for employees, linking compensation and promotions to experience, ability, and performance, with 100% of employees receiving annual training[94] - The company has a systematic talent training system, focusing on enhancing employees' knowledge, skills, and abilities, and has awarded over 680 national vocational qualification certificates[96] - The company has developed 227 internal training instructors to enhance teaching skills and promote corporate culture knowledge[98] - The company provides various training programs to enhance employees' skills, professional knowledge, and performance[179] Supplier and Customer Relations - Supplier distribution in 2023: Tier 1 cities in China (326), other cities in China (239), overseas (including Hong Kong and Macau) (413), totaling 978 suppliers, a decrease of 4.31% compared to 2022[102] - The company conducted on-site audits of over 36 suppliers in 2023 based on performance, quality, RoHS risk, and environmental factors[121] - The company collected and updated 208 RoHS compliance reports from suppliers in 2023 to ensure the use of environmentally friendly materials[122] - The company's supplier performance evaluation system prioritizes business opportunities for high-performing suppliers and provides training for underperforming ones[121] - The company's sales to its top five customers accounted for approximately 53.1% of total annual sales, with the largest customer contributing about 18.6%[131] - The company's purchases from its top five suppliers accounted for less than 30% of total annual procurement[131] - The company is committed to offering reliable and diverse products to customers and maintaining long-term cooperative relationships with suppliers[179] Innovation and Intellectual Property - The company has applied for over 5,800 patents globally by the end of 2023, with 4,100 patents granted, including 2,200 invention patents[109] - The company's main trademark "Comba" has been registered in 51 countries and regions worldwide[109] - The company has established a comprehensive RoHS management system to ensure all products meet China's "Electronic Information Product Pollution Control Management Measures" and EU RoHS requirements[125] Corporate Governance and Compliance - The company has not had any serious violations related to air and greenhouse gas emissions, wastewater and waste soil emissions, or the generation of harmful and non-harmful waste during the reporting period[78] - The company has implemented strict information security and confidentiality policies, including the "Information Security Management System" and "Information Security System," to protect both company and customer data[129] - The company has continuously improved its trade secret management system, including online system management, classification, and grading of trade secrets[130] - The company has purchased directors' liability insurance to provide appropriate protection for its directors[134] - The company has no significant transactions or contracts with entities in which directors or their connected parties have a material interest[147] - The company has no arrangements in place that allow directors to profit from the purchase of shares or bonds of the company or any other corporate body[150] - The company has no directors with interests in businesses that compete or may compete with the company's operations[151] - The company's internal controls are designed to ensure the financial statements are free from material misstatement due to fraud or error[167] - The company's audit focuses on identifying and assessing risks of material misstatement due to fraud or error, with higher risks associated with fraud[169] - The company's accounting policies and estimates are evaluated for appropriateness and reasonableness[170] - The company's retirement plan details are disclosed in the financial statements under employee benefits[176] - Prime Choice Investments Limited holds 678,115,129 shares, representing 24.51% of the company's issued share capital[177] - Chen Jingna, spouse of Mr. Huo, holds 688,479,468 shares, representing 24.89% of the company's issued share capital[177] - Wise Logic Investments Limited holds 228,225,410 shares, representing 8.25% of the company's issued share capital[177] - Cai Huini, spouse of Mr. Huo, holds 228,225,410 shares, representing 8.25% of the company's issued share capital[177] - The company's public shareholding exceeds 25%, meeting the requirements of the Hong Kong Listing Rules[179] - The company emphasizes the importance of maintaining good relationships with stakeholders, including employees, business partners, suppliers, customers, shareholders, investors, and banks[179] Product and Service Quality - The company received 19 product and service complaints in 2023, with no products returned due to safety or health reasons[110] - Packaging material usage in 2023: paper boxes and boards (1,615 tons), wooden boxes (602 tons), packaging accessories (341 tons), strapping (115 tons), other packaging materials (261 tons), totaling 2,934 tons, a decrease of 1.58% compared to 2022[105] - The company's packaging material consumption per 10,000 HKD of sales revenue increased by 0.19% to 0.0049 tons in 2023[105]

Revenue Performance - Revenue from China Mobile Group decreased by 27.1% to HKD 1,112,140,000, accounting for 18.6% of total revenue[16] - Revenue from China Tower increased by 34.6% to HKD 545,148,000, representing 9.1% of total revenue[17] - International market revenue rose by 9.8% to HKD 2,398,087,000, making up 40.1% of total revenue[18] - Revenue for the year ended December 31, 2023, was HKD 5,981,974,000, a decrease of 6.0% from HKD 6,364,677,000 in 2022[61] - Revenue from manufacturing and selling telecommunications network equipment was HKD 5,824,143,000, down from HKD 6,204,028,000 in the previous year, representing a decline of 6.1%[112] - Revenue from the domestic market in China was HKD 3,916,033,000, down 11.7% from HKD 4,435,654,000 in 2022[132] - Revenue from the Asia-Pacific region (excluding China) increased to HKD 1,023,682,000, up 27.4% from HKD 803,207,000 in 2022[132] - Revenue from China Telecom Group and its subsidiaries was approximately HKD 403,097,000 in 2023, slightly down from HKD 406,004,000 in 2022, maintaining a stable contribution of 6.7% to total revenue[157] - Revenue from ETL Company Limited was HKD 157,831,000, a decrease of 1.8% compared to last year (HKD 160,649,000), accounting for 2.6% of the group's total revenue[159] - Revenue from network systems (including wireless optimization and access) increased by 6.5% to HKD 1,117,997,000 (last year: HKD 1,050,111,000), representing 18.7% of the group's total revenue[160] - Revenue from China Unicom and its subsidiaries decreased by 26.2% to HKD 746,581,000, accounting for 12.5% of the group's total revenue[187] - Revenue from other domestic customers decreased by 7.8% to HKD 619,089,000, representing 10.3% of total revenue[188] - Revenue from base station antennas and subsystems decreased by 15.7% to HKD 2,561,451,000, accounting for 42.8% of total revenue[189] - Revenue from other businesses, including wireless transmission, increased by 41.5% to HKD 507,415,000, representing 8.5% of total revenue[190] Profitability and Expenses - Service revenue decreased by 6.8% to HKD 1,637,280,000, accounting for 27.4% of total revenue[20] - The group's profit attributable to equity holders decreased to HKD 6,696,000 from HKD 190,237,000 in the previous year[26] - Gross profit for the same period was HKD 1,662,687,000, down 11.2% from HKD 1,873,531,000 in the previous year[61] - Gross margin decreased to 27.8% in 2023 from 29.4% in 2022[64] - Profit attributable to shareholders was HKD 6,696,000, a significant decline of 96.5% compared to HKD 190,237,000 in 2022[61] - Operating cash flow for the year was HKD 492,720,000, slightly down from HKD 499,470,000 in the previous year[64] - Administrative expenses decreased by 0.4% to HKD 491,308,000 (last year: HKD 493,411,000), accounting for 8.2% of the group's revenue[165] - Financing costs decreased by 9.4% to HKD 54,534,000 (last year: HKD 60,198,000), maintaining a ratio of 0.9% of the group's revenue[166] - Total tax expenses were HKD 39,051,000 (last year: HKD 153,558,000), with a significant reduction in deferred tax expenses[167] Research and Development - R&D expenses decreased by 13.5% to HKD 446,059,000, representing 7.5% of total revenue[22] - The company launched a new generation of "Green Line Solutions" (HelifeedTM), which improves base station antenna energy conversion efficiency by approximately 20% and is expected to save operating companies 23 to 34 million kWh of electricity annually per 10,000 base stations, reducing carbon emissions by 13,000 to 20,000 tons[27] - The company has been focusing on R&D, production, and sales of network system products for over 15 years, including base station products and extended coverage products, with 5G small base station products already commercialized in over 20 provinces[28] - The company plans to allocate approximately HKD 515.39 million for R&D of 5G small base stations and Open RAN, with a focus on enhancing production capacity for 5G small base stations and antenna products by June 30, 2024[36] - Research and development expenses for the current year totaled HKD 365,075,000, an increase from HKD 348,274,000 in the previous year, marking a rise of 4.6%[141] Financial Position - Total assets as of December 31, 2023, amounted to HKD 9,409,025, compared to HKD 10,575,862 in the previous year, reflecting a reduction of approximately 11%[85] - Total liabilities increased to HKD 5,582,659 from HKD 6,611,136, showing a decrease of about 16% year-over-year[85] - Non-current assets totalled HKD 2,578,197,000, down from HKD 2,958,767,000 in 2022, reflecting a decrease of 12.9%[110] - Current assets decreased to HKD 6,830,828,000 in 2023 from HKD 7,617,095,000 in 2022, a decline of 10.3%[110] - Current liabilities decreased to HKD 5,267,009,000 in 2023 from HKD 5,516,893,000 in 2022, a reduction of 4.5%[110] - The net current asset value was HKD 1,563,819,000, down from HKD 2,100,202,000 in 2022, a decrease of 25.6%[110] - Non-current liabilities totalled HKD 315,650,000 in 2023, a substantial decrease from HKD 1,094,243,000 in 2022[92] - The equity attributable to owners of the parent company decreased to HKD 3,327,772,000 in 2023 from HKD 3,473,103,000 in 2022, a decline of 4.2%[93] Shareholder Returns and Capital Management - The board of directors recommended not to declare a final dividend for the year, compared to a final dividend of HKD 0.011 per share in 2022, reflecting the company's focus on long-term development[44] - The company repurchased a total of 39,858,000 shares at a total cost of approximately HKD 59.72 million, resulting in a total issued share count of 2,765,752,668 shares as of December 31, 2023[39] - Basic and diluted earnings per share for the year were HKD 0.24, down from HKD 6.84 in 2022[61] - Basic earnings per share for 2023 were calculated based on an average of 2,772,275,000 shares, compared to 2,779,557,000 shares in 2022[146] Market Strategy and Partnerships - The company continues to maintain stable partnerships with key international mobile operators and leading telecom equipment manufacturers to provide advanced 5G application solutions globally[49] - The company is focusing on expanding its market presence and enhancing its product offerings in the wireless telecommunications sector[85] - The company has established strict controls over its outstanding receivables and has set up a credit control department to minimize credit risk[125] - The company has no collateral or other credit enhancement tools for its trade receivables, which are interest-free[125] - The company aims to deepen integration with vertical industries to capture new business opportunities arising from scenario applications[170] - The group anticipates continued development in the global 5G industry, focusing on new business expansion and product innovation[197] Other Financial Metrics - Average accounts receivable turnover period improved to 225 days from 229 days year-on-year[51] - Average accounts payable turnover period decreased to 325 days from 349 days year-on-year[51] - Average inventory turnover period increased to 117 days from 114 days year-on-year[51] - Trade receivables decreased to HKD 3,504,455,000 in 2023 from HKD 3,862,632,000 in 2022, a reduction of 9.3%[110] - The impairment loss for trade receivables increased to HKD 82,589,000 in 2023 from HKD 41,734,000 in 2022, representing a significant rise of 97.8%[149] - Interest expenses on bank loans decreased to HKD 50,166,000 in 2023 from HKD 57,311,000 in 2022, a reduction of 12.5%[144] - The fair value change gain from redeemable preferred shares in a subsidiary was HKD 20,212,000 in 2023, down from HKD 43,742,000 in 2022, a decline of 53.8%[141] - Total other income and gains decreased to HKD 174,120,000 in 2023 from HKD 236,520,000 in 2022, a decline of 26.4%[139] - The cost of goods sold and services provided was HKD 4,285,662,000 in 2023, compared to HKD 4,428,359,000 in 2022, reflecting a decrease of 3.2%[141]

Financial Performance - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 526,217,000, compared to HKD 95,387,000 for the same period in 2022[9]. - The pre-tax profit for the period was HKD 179,869,000, significantly up from HKD 82,056,000 in the previous year[9]. - Total revenue for the six months ended June 30, 2023, was HKD 3,228,189, an increase from HKD 3,042,518 in the same period of 2022, representing a growth of approximately 6.1%[171]. - Profit before tax for the six months ended June 30, 2023, was HKD 123,349, compared to HKD 58,725 for the same period in 2022, indicating a significant increase of approximately 110.0%[178]. - The company reported a total comprehensive loss of HKD 147,956 for the six months ended June 30, 2023, compared to a loss of HKD 60,899 in the same period of 2022, indicating a deterioration in comprehensive income[178]. Equity and Reserves - Total equity amounted to HKD 4,183,817,000 as of June 30, 2023, a decrease from HKD 4,042,946,000 at the end of 2022[7]. - The total reserves as of June 30, 2023, were HKD 3,383,791,000, down from HKD 3,473,103,000 at the end of 2022[8]. - The retained earnings as of June 30, 2023, were HKD 1,376,530,000, reflecting a significant increase from HKD 1,466,958,000[7]. Expenses and Costs - The company incurred financing costs of HKD 30,107,000, an increase from HKD 21,653,000 in the previous year[9]. - The company reported a significant increase in expenses in mainland China, totaling HKD 37,657,000 for the current period, compared to HKD 11,036,000 in the previous year, reflecting a growth of approximately 241.5%[30]. - The company recognized an expense of approximately HKD 5,096,000 for employee services in the condensed consolidated income statement for the six months ended June 30, 2023, compared to HKD 10,088,000 for the same period in 2022[80]. Taxation - For the six months ended June 30, 2023, the total tax expense amounted to HKD 56,520,000, a significant increase from HKD 23,331,000 in the same period of 2022, representing an increase of approximately 142.5%[30]. - The company’s income tax rate for subsidiaries in China is 25%, with certain entities eligible for preferential rates or tax exemptions[172]. Share Options and Awards - The company repurchased a total of 36,170,000 shares for approximately HKD 54,545,000, with 27,450,000 shares cancelled during the six months ended June 30, 2023[68]. - The company has a limit on the number of shares that can be issued under the 2023 share option and share award plans, which cannot exceed 1% of the company's issued shares at any time[84]. - The 2023 Share Option Plan was adopted by shareholders on May 22, 2023, and will be effective for a period of ten years until May 22, 2033[95]. - The total number of shares that may be issued under the 2023 Share Option Plan is subject to approval by independent non-executive directors[97]. - The maximum number of shares that can be granted to directors or the CEO under all share plans is limited to 0.1% of the company's issued shares at any time[144]. Trade Receivables and Credit Losses - As of June 30, 2023, the total trade receivables amounted to HKD 4,551,699,000, with expected credit losses totaling HKD 689,067,000[62]. - The expected credit loss rates for trade receivables are 1.42% for current, 6.44% for less than 1 year overdue, 16.62% for 1 to 2 years overdue, and 68.78% for over 2 years overdue, indicating a significant risk in older receivables[62]. Financial Instruments and Fair Value - The fair value of financial instruments is estimated based on current market conditions and expected future cash flows[135]. - The fair value of financial assets and liabilities as of June 30, 2023, is similar to their carrying amounts, indicating stable financial conditions[154]. - The company’s financial instruments measured at fair value include equity investments with a fair value of HKD 101,460,000 as of June 30, 2023[159]. Capital Commitments - The company’s capital commitments as of June 30, 2023, are detailed in the financial statements, reflecting ongoing investment strategies[134]. - The company has contractual commitments for property, plant, and equipment amounting to HKD 15,069,000 as of June 30, 2023, compared to HKD 13,139,000 as of December 31, 2022[152].

Revenue and Financial Performance - Revenue from base station antennas and subsystems increased by 25.8% to HKD 3,038,957,000, accounting for 47.8% of total revenue[4] - The company's revenue for the year ended December 31 increased by 8.4% to HKD 6,364,677,000, compared to HKD 5,869,666,000 in the previous year[34] - Gross profit rose by 31.7% to HKD 1,873,531,000, with a gross margin of 29.4%, up 5.2 percentage points from 24.2% in the previous year[43] - The company reported a profit attributable to shareholders of HKD 190,237,000, a turnaround from a loss of HKD 592,567,000 in the previous year[34] - Revenue from China Unicom Group increased by 105.2% to HKD 1,011,757,000, accounting for 15.9% of total revenue, up from 8.4% in the previous year[40] - Revenue from services increased by 3.1% to HKD 1,756,437,000, accounting for 27.7% of total revenue[156] - Revenue from international customers and core equipment manufacturers rose by 9.3% to HKD 2,183,885,000, making up 34.3% of total revenue[178] - The group's new business revenue reached HKD 1,531,669,000 as of December 31, 2022[186] Market Position and Product Development - The company achieved significant growth in orders for base station antenna products, driven by multiple 5G antenna procurement projects from major telecom operators in China[4] - The company launched nine new high-power RRU products, which received the TIP Copper Medal for their leading indicators and stable performance[5] - The company is focusing on the development of Open RAN products, leveraging over 20 years of experience in RF product design and development[5] - The company has successfully trialed 5G small base station products in over ten provinces in China, highlighting its competitive edge in cost-effective solutions[5] - The company launched new 5G antenna products for 700MHz, 900MHz, 2.1GHz, and 3.5GHz, enhancing its product portfolio[70] - The company has developed the FLeX5 platform, integrating 5G networks with IoT and AI, to provide comprehensive smart solutions for various industries[79] - The company won the first place in China Unicom's centralized procurement project for base station antennas, setting a record for the highest bid amount[153] - The company launched the industry's first 5G cloud-based industrial base station in collaboration with China Mobile[152] Innovation and R&D - The company is committed to continuous innovation in technology, particularly in the areas of multi-carrier and multi-standard support for its products[5] - The company has applied for approximately 5,600 patents globally, showcasing its commitment to innovation[151] - The company aims to continue investing in advanced technologies and innovative products for the post-5G era, focusing on green and cost-effective solutions for global customers[71] - The group aims to enhance R&D capabilities and improve product quality to meet customer demands for green and cost-effective products[186] - The group is actively exploring "5G+ vertical industry applications" to drive future business growth[186] - The group has made technological advancements in the "5G+ mobile robot" product series and is initiating pilot projects[186] Financial Position and Expenses - The total assets of the company reached HKD 12,000 million, reflecting a strong financial position[14] - The net proceeds from a recent placement amounted to approximately HKD 686,235,000 after deducting related costs and expenses[6] - Financing costs increased by 37.6% to HKD 60,198,000, attributed to rising market interest rates[45] - Total tax expenses for the year amounted to HKD 153,558,000, representing 0.9% of the group's revenue[45] - Other expenses significantly decreased by 57.2% to HKD 183,504,000, accounting for 2.9% of the group's revenue[45] - Total operating expenses decreased by approximately HKD 520,399,000, a reduction of 25.5% compared to the previous year[70] - Administrative expenses decreased significantly by 17.9% to HKD 493,411,000, representing 7.8% of total revenue[181] Corporate Governance and Management - The board of directors has reviewed the company's corporate governance policies and confirmed compliance with all principles and rules since January 1, 2022[113] - The compensation committee has recommended salary policies for all directors and senior management, reviewing compensation arrangements and service contract terms[100] - The company has adopted a diversity policy ensuring at least 25% of the board members are women[105] - The board members attended 100% of the meetings held, with the chairman and CEO roles clearly divided among different directors[115][117] - The company has implemented internal controls to ensure compliance with statutory requirements and regulations[98] - The senior management's compensation includes sales commissions and equity-settled share option expenses, reflecting a structured approach to remuneration[119] - The board has authorized management to prepare annual and interim consolidated financial statements for approval before public release[117] - The company has established a nomination policy for director appointments and succession planning[103] - The board has maintained a high level of attendance at shareholder meetings, with all directors present at the last meeting[115] Strategic Plans and Future Outlook - The company plans to actively participate in future small base station procurement projects, with expectations for better rural coverage compared to 4G services[5] - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the telecommunications sector[37] - Management expects the relevant procurement projects to commence delivery in 2023, which will enhance future network systems product business[75] - The group plans to expand its innovative business to contribute to future performance growth[186] - The overall market outlook remains positive, with expectations for sustained demand in the telecommunications sector[5] Employee and Operational Metrics - The company employed approximately 5,300 staff as of December 31, down from 5,500 the previous year, with total employee costs amounting to HKD 1,109,052,000[22] - The average return on equity improved to 12.7%, an increase of 27.7 percentage points from -15.0% in 2021[66] - The average accounts receivable turnover period decreased to 229 days from 257 days in the previous year[186] - The average accounts payable turnover period was 349 days, slightly improved from 352 days in the previous year[186] - The average inventory turnover period increased to 114 days from 108 days in the previous year[186]