年 報 2021 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。 有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承受較大的市場波動風險， 同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表 示概不就因本報告全部或任何部份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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供有關直通電訊控股有限公 司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資料共同及個別承擔全部責任。各董事作出一切合理查 詢後確認，就彼等所知及所信：(1)本報告所載資料在各重大方面均準確完整，並無誤導或欺詐成分；及(2)並無遺 漏任何其他事項，以致本報告或當中所載任何陳述產生誤導。 | 目錄 | | --- | | 公司 ...

Financial Performance - For the nine months ended September 30, 2021, the company's revenue was approximately HKD 128,465,000, a decrease of about 21.9% compared to the same period in 2020[4]. - The loss attributable to shareholders for the nine months ended September 30, 2021, was approximately HKD 10,311,000, a reduction of about 49.0% compared to the same period in 2020[4]. - The gross profit for the nine months ended September 30, 2021, was HKD 1,639,000, down from HKD 3,063,000 in the same period of 2020[5]. - Operating loss for the nine months ended September 30, 2021, was HKD 10,454,000, compared to HKD 19,534,000 in the same period of 2020[5]. - The company reported a net loss before tax of HKD 10,501,000 for the nine months ended September 30, 2021, compared to HKD 19,593,000 in the same period of 2020[5]. - The total comprehensive loss attributable to shareholders for the nine months ended September 30, 2021, was HKD 10,145,000, compared to HKD 20,064,000 in the same period of 2020[5]. - The basic and diluted loss per share for the nine months ended September 30, 2021, was HKD 5.58, compared to HKD 10.94 in the same period of 2020[5]. - Other income for the nine months decreased to approximately HKD 26,000, a decline of about 96.6% from approximately HKD 770,000 in the previous year, mainly due to reduced interest income from bank deposits[46]. - The company recorded a loss attributable to equity shareholders of approximately HKD 10.31 million, a decrease of about 49.0% from HKD 20.22 million in the same period last year, attributed to a significant reduction in trade receivables impairment losses[49]. Revenue Breakdown - For the three months ended September 30, 2021, revenue from telecommunications services was HKD 805,000, down from HKD 6,898,000 in the same period of 2020[12]. - Revenue from distribution business for the three months ended September 30, 2021, was HKD 42,171,000, compared to HKD 49,172,000 in the same period of 2020[12]. - Revenue from telecommunications services decreased by approximately 58.6% to about HKD 1,583,000 for the nine months ended September 30, 2021, compared to HKD 3,827,000 in the same period last year[29]. - Distribution business revenue in Hong Kong generated approximately HKD 70,251,000, a decrease of about 10.5% from HKD 78,450,000 year-on-year[31]. - Revenue from mobile and data recharge services in China fell by approximately 69.4% to about HKD 7,851,000, down from HKD 25,645,000 in the previous year[34]. - The distribution business for mobile phones and electronic products in China reported revenue of approximately HKD 2,163,000, a decrease of about 44.9% from HKD 3,928,000 year-on-year[36]. - Revenue from mobile and data recharge distribution in Singapore decreased by approximately 11.6% to about HKD 46,569,000, down from HKD 52,689,000 in the same period last year[37]. - Revenue from telecommunications services and distribution business accounted for approximately HKD 9.48 million and HKD 118.98 million, representing 7.4% and 92.6% of total revenue, respectively[45]. Cost Management - Employee costs for the three months ended September 30, 2021, were HKD 830,000, a decrease of 26.5% from HKD 1,130,000 in 2020[6]. - Depreciation expenses for owned properties, plants, and equipment amounted to HKD 388,000 for the three months ended September 30, 2021, down from HKD 522,000 in 2020, representing a 25.6% decrease[6]. - The company is implementing strict cost control measures to improve its business and financial performance while exploring suitable business opportunities and investment prospects in the telecommunications sector[43]. - The company is actively seeking to lower unit costs for call time and mobile data to enhance competitiveness and reduce prepaid product prices[31]. Business Strategy and Development - The company operates as a mobile virtual network operator, purchasing call time and mobile data from various network operators for resale[28]. - The company plans to expand its distribution network overseas to attract more users during their travels[31]. - The company has adopted stricter credit risk standards to mitigate credit risks associated with distributors[36]. - The company remains cautiously optimistic about medium to long-term business development despite ongoing challenges from the COVID-19 pandemic[39]. - The company is monitoring the impact of COVID-19 on its financial condition and operational performance, taking necessary actions to maintain business stability[39]. - The company entered into a framework agreement with Micass (Shenzhen) Telecommunications Co., Ltd. to establish a joint venture in Hong Kong focused on providing comprehensive digital solutions for various industries and government entities globally[40]. - The joint venture will leverage Micass's integrated chips and solutions for 5G small cell radio units, aiming to expand opportunities in the global 5G infrastructure market[42]. Shareholder Information - The company did not recommend any dividend payment for the nine months ended September 30, 2021[4]. - The company did not recommend any dividends for the nine months ended September 30, 2021, consistent with the previous year[22]. - As of September 30, 2021, the company’s major shareholder, New Everich, holds approximately 56.49% of the shares, with Mr. Li Jiancheng owning 104,437,500 shares[62]. - The company has not proposed any dividends for the nine months ending September 30, 2021, consistent with the previous year[59]. Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the nine months ended September 30, 2021[73]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited results for the nine months ended September 30, 2021, and found them to comply with applicable accounting standards[83]. - The company has established a risk management and internal control system, which has been confirmed as effective by management as of September 30, 2021[81]. - The company has not purchased, sold, or redeemed any of its shares during the nine months ended September 30, 2021[75]. Share Option Plan - The company has adopted a new share option plan effective from May 11, 2016, with a duration of 10 years[69]. - The maximum number of shares that may be issued under the share option plan is 18,487,500 shares, representing 10% of the issued shares as of September 30, 2021[70]. - No share options have been granted or cancelled under the share option plan during the nine months ended September 30, 2021[72]. - The company aims to attract and retain talented employees through the share option plan, rewarding contributions to long-term development[69]. RF-SIM Business - The company allocated approximately HKD 12,300,000 for the development and implementation of the RF-SIM business plan in Hong Kong and Macau, with about HKD 4,300,000 already utilized[54]. - The company faced challenges in promoting RF-SIM applications due to the dominance of a stored-value smart card system in the electronic wallet and payment market in Hong Kong[54]. - After three years of efforts, the company decided to shift the application of RF-SIM technology to smart living, targeting large residential property management companies in Hong Kong[54]. - The development and implementation of the RF-SIM business remain a key agenda for the company, with ongoing internal research to explore different application scenarios[56]. - The company will closely monitor the development of its RF-SIM business and consider further changes to the allocation of IPO proceeds if necessary[56]. - The company has exclusive licensing rights for RF-SIM intellectual property in Hong Kong and Macau, while another entity holds rights outside these regions[80]. - The company has a non-compete agreement in place to prevent conflicts with its business operations in Hong Kong and Macau[80].

[Financial Highlights](index=3&type=section&id=Highlights) [Summary of Interim Results for 2021](index=3&type=section&id=Unaudited%20Interim%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202021) For the six months ended June 30, 2021, the company's revenue decreased by 21.2% year-on-year, while loss attributable to shareholders significantly narrowed by 56.4%, with the Board deciding not to declare an interim dividend Key Interim Financial Indicators for 2021 | Metric | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 85,489,000 | -21.2% | | Loss Attributable to Shareholders | 7,280,000 | -56.4% | | Interim Dividend | Not Declared | - | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2021, the company experienced a year-on-year decline in both revenue and gross profit, yet significantly narrowed its operating and period losses due to a substantial reduction in administrative and other operating expenses, leading to a decrease in basic loss per share from 9.02 HK Cents to 3.94 HK Cents Core Profit or Loss Data (For the Six Months Ended June 30) | Item | 2021 (HKD Thousands) | 2020 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 85,489 | 108,516 | -21.2% | | Gross Profit | 835 | 1,494 | -44.1% | | Operating Loss | (7,374) | (16,790) | +56.1% | | Loss Attributable to Shareholders for the Period | (7,280) | (16,682) | +56.4% | | Basic Loss Per Share (HK Cents) | (3.94) | (9.02) | +56.3% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, the company's total assets and net assets slightly decreased compared to the end of 2020, maintaining a healthy net current assets position of HKD 55.95 million, despite a reduction in cash and cash equivalents Core Financial Position Data | Item | June 30, 2021 (HKD Thousands) | December 31, 2020 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 8,375 | 9,163 | -8.6% | | Total Current Assets | 64,236 | 67,181 | -4.4% | | Total Current Liabilities | 8,289 | 4,933 | +68.0% | | Net Assets | 62,836 | 69,860 | -10.1% | | Cash and Cash Equivalents | 28,192 | 37,154 | -24.1% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2021, the company's total equity decreased from approximately HKD 69.86 million at the beginning of the year to approximately HKD 62.84 million, primarily due to a loss of HKD 7.28 million recorded during the period - The total comprehensive loss for the period was **HKD 7,024,000**, primarily comprising a loss for the period of **HKD 7,280,000** and other comprehensive income of **HKD 256,000**[10](index=10&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2021, the Group experienced a net cash outflow from operating activities of HKD 8.53 million, resulting in a net decrease in cash and cash equivalents of HKD 9.16 million, with the period-end cash balance at HKD 28.19 million Core Cash Flow Data (For the Six Months Ended June 30) | Item | 2021 (HKD Thousands) | 2020 (HKD Thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (8,531) | (16,209) | | Net Decrease in Cash and Cash Equivalents | (9,156) | (16,483) | | Cash and Cash Equivalents at End of Period | 28,192 | 39,781 | [Notes to the Interim Financial Report](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [Revenue and Segment Information](index=11&type=section&id=5.%20Revenue%20and%206.%20Segment%20Information) The Group's total revenue is primarily derived from two business segments: distribution business and telecommunications services, accounting for 89.9% and 10.1% of total revenue respectively, both experiencing a decline compared to the prior period, with telecommunications services dropping by 61.6%, and Hong Kong remaining the main revenue source at 55.6% of total revenue Revenue by Business Segment (For the Six Months Ended June 30) | Business Segment | 2021 (HKD Thousands) | 2020 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Telecommunications Services | 8,677 | 22,621 | -61.6% | | Distribution Business | 76,812 | 85,895 | -10.6% | | **Total** | **85,489** | **108,516** | **-21.2%** | Revenue by Geographical Region (For the Six Months Ended June 30) | Region | 2021 (HKD Thousands) | 2020 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hong Kong | 47,535 | 49,426 | -3.8% | | Mainland China | 9,267 | 22,798 | -59.4% | | Singapore | 28,687 | 36,292 | -21.0% | | **Total** | **85,489** | **108,516** | **-21.2%** | [Analysis of Loss Before Tax](index=16&type=section&id=8.%20Loss%20Before%20Tax) A key factor in the narrowed loss for the current period is the absence of impairment losses on trade receivables, which amounted to HKD 7.92 million in the corresponding period last year - For the six months ended June 30, 2021, impairment loss on trade receivables was **HKD 0**, while in the same period of 2020 it was **HKD 7,920,000**, which is a primary reason for the significant decrease in administrative expenses and the overall narrowed loss[34](index=34&type=chunk) [Dividends](index=17&type=section&id=10.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[36](index=36&type=chunk) [Share Capital Movements](index=23&type=section&id=18.%20Share%20Capital) On January 20, 2021, the company completed a share consolidation, merging every 20 ordinary shares of HKD 0.01 par value into 1 ordinary share of HKD 0.20 par value, reducing the number of issued ordinary shares from 3,697,500,000 to 184,875,000 - Pursuant to the resolution passed at the Extraordinary General Meeting on January 18, 2021, the company implemented a "Share Consolidation," consolidating every **20 shares into 1 share**, effective January 20, 2021[53](index=53&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=29&type=section&id=Business%20Review%20and%20Outlook) The Group's business faces ongoing challenges due to the COVID-19 pandemic, severely impacting Hong Kong's telecommunications services with a 71.5% revenue decline due to reduced tourism, while Mainland China's top-up and distribution businesses also fell by 60.4% and 53.3% respectively, and Singapore's distribution business decreased by 21.0%, prompting the Group to implement cost controls and explore overseas markets with cautious optimism for medium to long-term development - The COVID-19 pandemic led to a significant reduction in overseas tourists, particularly from Mainland China, adversely affecting the Group's sales of prepaid roaming products[68](index=68&type=chunk) - The Hong Kong mobile phone and electronic product distribution business performed stably, with revenue slightly increasing by **0.2%** to approximately **HKD 46.74 million**[70](index=70&type=chunk) - Revenue from mobile and data top-up services in Mainland China decreased by **60.4%** year-on-year due to intense competition and the pandemic's impact[73](index=73&type=chunk) - Revenue from mobile and data top-up distribution business in Singapore decreased by **21.0%** year-on-year to approximately **HKD 28.69 million**[76](index=76&type=chunk) - Looking ahead, the Group will implement strict cost controls, accelerate business model transformation, and explore the extension of information services centered on MaaS (Mobility as a Service), maintaining cautious optimism for medium to long-term development[78](index=78&type=chunk) [Financial Review](index=34&type=section&id=Financial%20Review) In the first half of 2021, the Group's revenue decreased by 21.2% to HKD 85.49 million, and gross profit declined by 44.1%; however, due to a substantial reduction in administrative expenses (primarily from the absence of a large trade receivables impairment loss present in the prior period) and a decrease in net other losses, the loss attributable to shareholders significantly narrowed by 56.4%, from HKD 16.68 million to HKD 7.28 million - Administrative and other operating expenses decreased by **50.8%** year-on-year, mainly due to the absence of impairment loss on trade receivables in the current period, which amounted to **HKD 7.92 million** in the prior period[83](index=83&type=chunk) - Net other losses decreased by **95.0%** year-on-year, primarily due to reduced exchange losses and the absence of a **HKD 1.90 million** fair value change loss on contingent consideration in the prior period[81](index=81&type=chunk) - As a result of these factors, loss attributable to shareholders decreased by **56.4%** year-on-year[83](index=83&type=chunk) [Other Information](index=35&type=section&id=Other%20Information) This section covers IPO fund utilization, capital structure, liquidity, shareholders' equity, and corporate governance, noting that HKD 8 million of IPO funds remain unused for RF-SIM business, the company has no bank borrowings and a stable capital structure despite a decreased current ratio, and it complies with corporate governance codes while disclosing director and major shareholder holdings - As of June 30, 2021, approximately **HKD 8 million** of the approximately **HKD 69.2 million** IPO proceeds remained unutilized, primarily allocated to the RF-SIM business plan, expected to be fully utilized by the end of 2022[86](index=86&type=chunk)[88](index=88&type=chunk) Liquidity Indicators | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Net Current Assets | Approx. 55,947,000 HKD | Approx. 62,248,000 HKD | | Cash and Cash Equivalents | Approx. 28,192,000 HKD | Approx. 37,154,000 HKD | | Current Ratio | 7.7 times | 13.6 times | - As of June 30, 2021, the Group had no outstanding loans or borrowings[92](index=92&type=chunk) - For the six months ended June 30, 2021, the company complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[115](index=115&type=chunk)

DIRECTEL HOLDINGS LIMITED 直通電訊控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8337） 第一季度業績報告 二零二一 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供 有關直通電訊控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資 料共同及個別承擔全部責任。各董事作出一切合理查詢後確認，就彼等所知及所信：(1) 本報告所載資料在各重大 ...

[Chairman's Statement](index=6&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [Annual Results and Review](index=6&type=section&id=%E5%B9%B4%E5%BA%A6%E6%A5%AD%E7%B8%BE%E8%88%87%E5%9B%9E%E9%A1%A7) In 2020, the Group's total revenue decreased by 12.7% year-on-year, while loss attributable to equity holders significantly narrowed by 98.9%, primarily due to a sharp decline in telecommunications services revenue 2020 Key Performance Indicators | Indicator | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 213.8 million | HKD 244.8 million | -12.7% | | Loss attributable to equity holders | HKD 0.668 million | HKD 59.076 million | -98.9% | | Basic and diluted loss per share | HKD 0.36 cents | HKD 34.00 cents (restated) | -98.9% | - Telecommunications services revenue significantly decreased by **41.2%** from HKD 61.723 million to **HKD 36.292 million**, a primary factor in the Group's overall weak performance[11](index=11&type=chunk) - Distribution business (mobile phones, electronic products, and top-up vouchers) revenue was approximately **HKD 177.5 million**, a slight decrease of **3.1%** year-on-year, expected to remain the Group's main revenue source in the future[11](index=11&type=chunk) [Outlook](index=6&type=section&id=%E5%89%8D%E6%99%AF) The Group maintains cautious optimism for the future, anticipating a recovery in tourism and demand for roaming products with widespread vaccine adoption - The Group expects its roaming products and services to regain market demand with the recovery of global tourism[12](index=12&type=chunk) - The future strategic core is "Mobile as a Service" (MaaS), aiming to establish partnerships with the tourism, hotel, airline, and insurance industries to provide mobile communication services for travelers in the Greater Bay Area and Southeast Asia[12](index=12&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review and Outlook](index=8&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%89%8D%E6%99%AF) This year, the Group's operations faced challenges across all markets, leading to significant revenue shifts and strategic adjustments towards "Mobile as a Service" (MaaS) with strict cost control [Hong Kong Operations](index=8&type=section&id=%E6%96%BC%E9%A6%99%E6%B8%AF%E7%9A%84%E6%A5%AD%E5%8B%99) Hong Kong operations were severely impacted by the COVID-19 pandemic, leading to an 80.7% year-on-year reduction in telecommunications services revenue, while mobile phone and electronic product distribution business grew by 7.4% - Due to the sharp decline in tourists caused by COVID-19, the Group's prepaid roaming product sales were severely hit, with telecommunications services revenue significantly decreasing by **80.7%** from HKD 22.668 million in the prior year to **HKD 4.374 million**[18](index=18&type=chunk) - Mobile phone and electronic product distribution business became the main revenue source in Hong Kong, with annual revenue of approximately **HKD 103.8 million**, a year-on-year increase of approximately **7.4%**[19](index=19&type=chunk) [China Operations](index=9&type=section&id=%E6%96%BC%E4%B8%AD%E5%9C%8B%E7%9A%84%E6%A5%AD%E5%8B%99) China operations faced intense competition and pandemic-related impacts, resulting in a 16.8% decline in mobile and data top-up services revenue and a 71.2% drop in mobile phone and electronic product distribution revenue - Mobile and data top-up services revenue was approximately **HKD 31.855 million**, a year-on-year decrease of approximately **16.8%**, primarily due to intense industry competition and operator tariff adjustments[22](index=22&type=chunk) - Mobile phone and electronic product distribution business revenue was approximately **HKD 4.63 million**, a significant year-on-year decrease of approximately **71.2%**, mainly due to customer order cancellations and increased credit risk from some distributors due to the pandemic[23](index=23&type=chunk) [Singapore Operations](index=10&type=section&id=%E6%96%BC%E6%96%B0%E5%8A%A0%E5%9D%A1%E7%9A%84%E6%A5%AD%E5%8B%99) Singapore's mobile and data top-up distribution business remained stable with a slight 1.8% year-on-year decrease, but the goodwill from acquisition was fully impaired due to underperformance - Mobile and data top-up distribution business revenue was approximately **HKD 69.045 million**, a slight year-on-year decrease of **1.8%**[27](index=27&type=chunk) - Goodwill of approximately **HKD 5.942 million** arising from the acquisition of South Data, the Singapore business, was fully impaired during the year due to its actual performance falling short of expectations[28](index=28&type=chunk) [Financial Review](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For FY2020, total revenue decreased by 12.7% to HKD 213.8 million, but gross profit increased by 52.9%, and a significant net other income of HKD 36.405 million from the elimination of contingent consideration led to a 98.9% reduction in loss attributable to equity holders 2020 Financial Performance Summary (HKD thousand) | Item | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 213,786 | 244,823 | -12.7% | | Cost of sales | (211,892) | (243,584) | -13.0% | | Gross profit | 1,894 | 1,239 | +52.9% | | Net other income/(loss) | 36,405 | (2,626) | N/A | | Administrative and other operating expenses | (38,799) | (57,784) | -32.9% | | Loss attributable to equity holders | (668) | (59,076) | -98.9% | - Net other income significantly increased, primarily due to a gain of approximately **HKD 35.21 million** from the elimination of contingent consideration payable for the acquisition of Sun Tai Investment[40](index=40&type=chunk) - Administrative expenses decreased mainly because impairment losses on goodwill and intangible assets significantly reduced from approximately **HKD 30.5 million** last year to approximately **HKD 5.94 million**, though partly offset by an increase in impairment losses on trade receivables[41](index=41&type=chunk) [Other Information](index=14&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) As of the end of 2020, approximately HKD 61.2 million of the total HKD 69.2 million IPO proceeds had been utilized, with about HKD 8 million allocated for RF-SIM business in Hong Kong and Macau remaining unutilized due to slower progress Use of IPO Proceeds (As of December 31, 2020) (HKD million) | Use | Original Allocation | Revised Allocation | Actual Use | | :--- | :--- | :--- | :--- | | Expand Asia Pacific business | 22.7 | 22.7 | 22.7 | | Upgrade telecommunications facilities | 20.8 | 12.8 | 12.8 | | Develop RF-SIM business | 18.9 | 12.3 | 4.3 | | Overseas mobile phone distribution | – | 12.1 | 12.1 | | Working capital | 6.8 | 9.3 | 9.3 | | **Total** | **69.2** | **69.2** | **61.2** | - The unutilized balance of approximately **HKD 8 million** allocated for the RF-SIM business plan is currently held as interest-bearing deposits in banks due to slower-than-expected business development progress[48](index=48&type=chunk)[50](index=50&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=15&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintained a robust capital structure with no outstanding loans or borrowings at year-end, holding net current assets of approximately HKD 62.25 million and a current ratio of 13.6 times - As of December 31, 2020, the Group had no outstanding loans or borrowings, and the gearing ratio was not applicable[51](index=51&type=chunk) Liquidity Indicators (At Year-End) | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Net current assets | HKD 62.248 million | HKD 89.314 million | | Cash and cash equivalents | HKD 37.154 million | HKD 56.625 million | | Current ratio | 13.6 times | 12.1 times | [Employees and Remuneration Policy](index=17&type=section&id=%E5%93%A1%E5%B7%A5%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of the end of 2020, the Group had 23 employees, an increase of one from the previous year, with total employee remuneration decreasing to approximately HKD 4.632 million Employee Distribution and Remuneration | Item | 2020 | 2019 | | :--- | :--- | :--- | | Total number of employees | 23 | 22 | | Total employee remuneration | HKD 4.632 million | HKD 5.125 million | [Directors' Report](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) [Principal Businesses and Risks](index=18&type=section&id=%E4%B8%BB%E8%A6%81%E6%A5%AD%E5%8B%99%E5%8F%8A%E9%A2%A8%E9%9A%AA) The Group, primarily an investment holding company with subsidiaries providing mobile telecommunications and distribution services, faces key risks including intense market competition, reliance on third-party service providers, and cybersecurity threats - Key risks include: - **Intense Competition**: The market is characterized by price pressure, potentially leading to market share loss - **Reliance on Service Providers**: As a mobile virtual network operator, business relies on third-party network infrastructure - **Information Systems/Technology**: Business stability depends on the protection and stable operation of information technology systems - **Development Strategy**: Expanding into overseas markets poses risks related to unfamiliar regulatory environments - **Cybersecurity**: Handling large volumes of customer data makes the Group vulnerable to cyber threats - **Financial Risks**: Exposure to credit, interest rate, foreign exchange, and liquidity risks[70](index=70&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) [Financial Information and Dividends](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E5%8F%8A%E8%82%A1%E6%81%AF) The Board does not recommend a final dividend for the year, consistent with the previous year, with approximately HKD 53.5 million in distributable reserves available as of December 31, 2020 - The Board does not recommend the payment of a final dividend for the year ended December 31, 2020[85](index=85&type=chunk) - As of December 31, 2020, the Company had approximately **HKD 53.496 million** in reserves available for distribution to equity holders[90](index=90&type=chunk) [Major Customers and Suppliers](index=22&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E5%8F%8A%E4%BE%9B%E6%87%89%E5%95%86) The Group exhibits high concentration in both its customer and supplier bases, with the top five customers accounting for 74.3% of total revenue and the top five suppliers for 76.1% of total purchases in 2020 Customer and Supplier Concentration (2020) | Item | Percentage | | :--- | :--- | | Revenue from largest customer | 32.3% | | Revenue from top five customers | 74.3% | | Purchases from largest supplier | 32.6% | | Purchases from top five suppliers | 76.1% | [Events After Reporting Period](index=23&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) In January 2021, the Company completed a share consolidation, merging every twenty HKD 0.01 par value ordinary shares into one HKD 0.20 par value consolidated share, resulting in 184,875,000 issued shares - The Company completed a share consolidation on January 20, 2021, on a "20-for-1" basis[96](index=96&type=chunk) [Share Capital and Interests](index=27&type=section&id=%E8%82%A1%E6%AC%8A%E5%8F%8A%E6%AC%8A%E7%9B%8A) As of the end of 2020, Chairman Mr. Li Kin Shing beneficially owned approximately 59.23% of the Company's shares, and a non-competition undertaking was in place to address potential conflicts of interest related to the RF-SIM business - Chairman Mr. Li Kin Shing is deemed to hold approximately **59.23%** of the Company's shares (**56.49%** through controlled corporations and **2.74%** beneficially owned)[114](index=114&type=chunk) - Controlling shareholder Mr. Li Kin Shing and his associated companies have potential competition with the Group in the RF-SIM business in China (excluding Hong Kong and Macau), but a non-competition undertaking deed has been signed[121](index=121&type=chunk)[125](index=125&type=chunk) [Share Option Scheme](index=30&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a 10-year share option scheme in 2016, with no share options granted or cancelled during 2020, and no outstanding share options at year-end - No share options were granted or cancelled during the year, and as of December 31, 2020, there were no outstanding share options under the share option scheme[130](index=130&type=chunk) [Corporate Governance Report](index=32&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Board and Committees](index=32&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) The Company adheres strictly to corporate governance codes, with an eight-member Board ensuring power balance and three independent non-executive director-chaired committees assisting in fulfilling responsibilities - The Board comprises **8** directors, including **3** independent non-executive directors, meeting the GEM Listing Rules requirements[140](index=140&type=chunk)[141](index=141&type=chunk) - The roles of Chairman (Mr. Li Kin Shing) and Chief Executive Officer (Mr. Pang Kwok Chau) are separated, ensuring a balance of power[150](index=150&type=chunk) - The Company has established an Audit Committee, a Nomination Committee, and a Remuneration Committee, all chaired by Independent Non-executive Director Ms. Li Man Yee[159](index=159&type=chunk)[164](index=164&type=chunk)[181](index=181&type=chunk) [Shareholders' Rights and Investor Relations](index=46&type=section&id=%E8%82%A1%E6%9D%B1%E6%AC%8A%E5%88%A9%E5%8F%8A%E6%8A%95%E8%B3%87%E8%80%85%E9%97%9C%E4%BF%82) The Company prioritizes shareholder communication through various channels and outlines procedures for shareholders to convene extraordinary general meetings, make inquiries, and propose resolutions, safeguarding their participation rights - Shareholders holding not less than one-tenth of the paid-up share capital carrying the right to vote at general meetings may request to convene an extraordinary general meeting[190](index=190&type=chunk) [Biographies of Directors and Senior Management](index=48&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4%E5%B1%A5%E6%AD%B7) This section provides detailed background, industry experience, and responsibilities within the Group for the Company's Board members and senior management [Independent Auditor's Report](index=51&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) [Audit Opinion](index=51&type=section&id=%E5%AF%A9%E8%A8%88%E6%84%8F%E8%A6%8B) KPMG issued an unmodified opinion on the Company's consolidated financial statements for the year ended December 31, 2020, affirming their fair presentation in accordance with International Financial Reporting Standards and Hong Kong Companies Ordinance - The auditor believes that the consolidated financial statements fairly and truly reflect the Group's financial position and performance in accordance with International Financial Reporting Standards[207](index=207&type=chunk) [Key Audit Matters](index=51&type=section&id=%E9%97%9C%E9%8D%B5%E5%AF%A9%E8%A8%88%E4%BA%8B%E9%A0%85) The auditor identified goodwill impairment testing and revenue recognition as key audit matters, focusing on significant management estimates for goodwill and accounting treatment for telecommunications and distribution business revenues - **Goodwill Impairment Testing**: Focus on the impairment assessment of goodwill arising from the acquisition of the Singapore business, as it involves significant estimates and judgments regarding future cash flow forecasts[211](index=211&type=chunk) - **Revenue Recognition**: - **Telecommunications Services**: Revenue derived from a large volume of low-value transactions and involves estimates of customers' "unused rights," posing subjectivity and risk of error - **Distribution Business**: Revenue is a key performance indicator, with a risk of revenue being recorded in incorrect periods to meet financial targets[215](index=215&type=chunk)[220](index=220&type=chunk) [Audited Consolidated Financial Statements](index=57&type=section&id=%E7%B6%93%E5%AF%A9%E6%A0%B8%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=57&type=section&id=%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The statement shows 2020 revenue at HKD 213.8 million, a 12.7% year-on-year decrease, but the annual loss significantly narrowed to HKD 0.668 million from HKD 59.076 million in 2019 due to a substantial increase in net other income Consolidated Statement of Profit or Loss Summary (HKD thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 213,786 | 244,823 | | Gross profit | 1,894 | 1,239 | | Net other income/(loss) | 36,405 | (2,626) | | Profit/(loss) before tax | 220 | (58,816) | | Loss for the year attributable to equity holders | (668) | (59,076) | [Consolidated Statement of Financial Position](index=58&type=section&id=%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of the end of 2020, total assets decreased significantly to HKD 76.344 million from HKD 115.8 million, primarily due to full goodwill impairment and lower cash balances, while total liabilities decreased to HKD 6.484 million mainly due to the elimination of contingent consideration Consolidated Statement of Financial Position Summary (HKD thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Non-current assets | 9,163 | 18,479 | | Current assets | 67,181 | 97,335 | | **Total assets** | **76,344** | **115,814** | | Current liabilities | 4,933 | 8,021 | | Non-current liabilities | 1,551 | 38,191 | | **Total liabilities** | **6,484** | **46,212** | | **Total equity** | **69,860** | **69,602** | [Consolidated Statement of Cash Flows](index=60&type=section&id=%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In 2020, the Group experienced a net cash outflow from operating activities of HKD 19.04 million, compared to a net inflow of HKD 9.623 million in the prior year, primarily due to changes in working capital, resulting in a year-end cash balance of HKD 37.154 million Consolidated Statement of Cash Flows Summary (HKD thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net cash from operating activities | (19,040) | 9,623 | | Net cash from investing activities | 202 | 249 | | Net cash from financing activities | (1,055) | 31,561 | | Net (decrease)/increase in cash and cash equivalents | (19,893) | 41,433 | | Cash and cash equivalents at beginning of year | 56,625 | 15,711 | | **Cash and cash equivalents at end of year** | **37,154** | **56,625** | [Notes to the Financial Statements](index=61&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed supplementary information to the financial statements, covering key accounting policies, segment information, asset and liability breakdowns, related party transactions, financial risk management, and significant accounting estimates and judgments - Segment information indicates that the distribution business contributed the vast majority of revenue (**HKD 177.5 million**), while telecommunications services revenue was **HKD 36.29 million**[319](index=319&type=chunk) - Goodwill impairment loss of **HKD 5.942 million** due to underperformance of Singapore operations; goodwill of **HKD 28.061 million** was impaired in 2019 due to underperformance of China operations[357](index=357&type=chunk)[364](index=364&type=chunk) - Loss allowance for trade receivables significantly increased from **HKD 3.765 million** to **HKD 18.362 million**, reflecting increased credit risk[407](index=407&type=chunk) [Five-Year Financial Summary](index=124&type=section&id=%E4%BA%94%E5%B9%B4%E6%A6%82%E8%A6%81) This section provides a summary of the Group's key financial data for five consecutive fiscal years from 2016 to 2020, illustrating trends in performance and financial position, showing revenue peaking in 2018 before two consecutive years of decline, and a significant narrowing of loss in 2020 after a substantial loss in 2019 Five-Year Financial Summary (HKD thousand) | Item | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 213,786 | 244,823 | 256,279 | 59,096 | 6,415 | | (Loss)/Profit attributable to equity holders | (668) | (59,076) | (1,778) | (6,222) | 3,243 | | Total assets | 76,344 | 115,814 | 144,233 | 142,577 | 114,140 | | Total equity | 69,860 | 69,602 | 98,059 | 100,622 | 106,620 |

DIRECTEL HOLDINGS LIMITED 直通電訊控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8337） 第三季度業績報告 二零二零 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供 有關直通電訊控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資 料共同及個別承擔全部責任。各董事作出一切合理查詢後確認，就彼等所知及所信：(1) 本報告所載資料在各重大 ...

DIRECTEL HOLDINGS LIMITED 直通電訊控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8337） 中期業績報告 二零二零 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供 有關直通電訊控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資 料共同及個別承擔全部責任。各董事作出一切合理查詢後確認，就彼等所知及所信：(1) 本報告所載資料在各重大方面 ...

DIRECTEL HOLDINGS LIMITED 直通電訊控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8337） 第一季度業績報告 二零二零 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供 有關直通電訊控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資 料共同及個別承擔全部責任。各董事作出一切合理查詢後確認，就彼等所知及所信：(1) 本報告所載資料在各重大 ...

年 報 2019 ANNUAL REPORT 年報 2019 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市的公司帶有較高投資風 險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承受較大的市場波動 風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並 明確表示概不就因本報告全部或任何部份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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供有關直通電訊控股有 限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資料共同及個別承擔全部責任。各董事作出 一切合理查詢後確認，就彼等所知及所信：(1)本報告所載資料在各重大方面均準確完整，並無誤導或欺詐成 分；及(2)並無遺漏任何其他事項，以致本報告或當中所載任何陳述產生誤導 ...

DIRECTEL HOLDINGS LIMITED 直通電訊控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8337） 第三季度業績報告 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報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。 本報告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供 有關直通電訊控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資 料共同及個別承擔全部責任。各董事作出一切合理查詢後確認，就彼等所知及所信：(1) 本報告所載資料在各重大方面均屬準確完整，並無誤導或欺詐成分；及(2)並無遺漏任 何 ...