提名委員會職權範圍 定義 「董事會」指本公司的董事會； 「本公司」指香港寬頻有限公司； HKBN Ltd. 「公司秘書」指本公司的公司秘書； 香 港 寬 頻 有 限 公 司 （ 於開曼群島註冊成立的有限公司） （「本公司」） 「董事」指董事會的成員； 「本集團」指本公司及其附屬公司； 「上市規則」指聯交所證券上市規則（ 經不時修訂 ）； 「提名委員會」指按董事會決議根據本職權範圍書設立的提名委員會； 「股東」指本公司不時的股東；及 「聯交所」指香港聯合交易所有限公司。 組建 2. 提名委員會於2015年2月6日由董事會決議設立。 成員 – 1 – 1. 在本職權範圍書（「職權範圍書」）內： 「章程」指本公司章程（ 經不時修訂 ）； 3. 提名委員會的成員應由董事會從董事中委任，成員不少於三名，其中大多數 應為獨立非執行董事。會議的法定人數為兩名成員，其中至少一名應為獨立 非執行董事。 4. 提名委員會的主席應由董事會委任，並應為獨立非執行董事或董事會主席。 5. 提名委員會成員之組成如有任何偏離者，本公司應於年報和中期報告中予以 說明原因。 6. 提名委員會的組成應遵守上市規則的規定。 會議 股東周年大會 1 ...

EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合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 公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。 | | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 香港寬頻有限公司 | | 股份代號 | 01310 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至2024年8月31日止年度全年業績公告 | | 公告日期 | 2024年10月31日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 末期 | | 股息性質 | 普通股息 | | 財政年末 | 2024年8月31日 | | 宣派股息的報告期末 | 2024年8月31日 | | 宣派股息 | 每 股 0.165 HKD | | 股東批准日期 | 2024年12月12日 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | 每 股 0.165 HKD | | 匯率 | 1 HKD : 1 H ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 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，且 表 明 不 會 就 本 公 告 全 部 或 任 何 部 分 內 容 所 導 致 或 因 依 賴 該 等 內 容 而 產 生 的 任 何 損 失 承 擔 任 何 責 任。 HKBN Ltd. 香港寬頻有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1310） 截 至2024年8月31日 止 年 度 力 創 佳 績！ 在 充 滿 挑 戰 的 時 期，香 港 寬 頻 仍 堅 定 不 移，力 創 佳 績。 全 年 業 績 公 告 （除 另 有 說 明 外，本 公 告 所 載 全 部 財 務 數 字 均 以 港 元 列 示。） 香 港 寬 頻 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（「本 集 團」）截 至2024年8月31日 止 年 度（「2024財 年」）的 綜 合 業 績。 公 告 摘 要 – 1 – • 不 計 手 機 銷 售 ...

Financial Performance - Total revenue for the six months ended February 29, 2024, was HKD 5,809,091, a decrease of 13% compared to HKD 6,707,216 for the same period in 2023[14]. - Adjusted net profit for the period was HKD 85,508, down 16% from HKD 102,208 in the prior year[14]. - The company reported a 93% decline in profit for the period, amounting to HKD 1,534 compared to HKD 23,238 in the previous year[14]. - The adjusted free cash flow decreased by 66% to HKD 124,248 from HKD 367,648 year-on-year[14]. - Total revenue for the six months ended February 29, 2024, decreased by 13% to HKD 5.809 billion compared to the same period last year[17]. - The company reported a total comprehensive income of HKD 6,379 for the period, down from HKD 22,148 in the previous year[97]. - The company reported a net cash outflow from investing activities of HKD 190,184 for the six months ended February 29, 2024, compared to HKD 286,988 for the same period in 2023, indicating a reduction in investment spending[102]. - The company’s retained earnings as of February 29, 2024, were reported at HKD (197,822), reflecting a significant decrease from HKD 96,428 as of August 31, 2023[101]. - The company reported a loss of HKD 1,290,646 for the six months ended August 31, 2023, indicating a challenging financial environment[100]. Revenue Breakdown - The enterprise solutions segment generated revenue of HKD 2,310,418, down 2% from HKD 2,348,457 year-on-year[14]. - The residential solutions segment reported revenue of HKD 1,181,509, a slight decrease of 1% from HKD 1,196,941 in the previous year[14]. - Mobile and other products revenue fell significantly by 36% to HKD 1,365,472 from HKD 2,122,087[14]. - Revenue from residential solutions was HKD 1,181,509, down 1.3% from HKD 1,196,941 in the previous year[114]. - Revenue from enterprise solutions was HKD 2,310,418, a decrease of 1.6% compared to HKD 2,348,457 in 2023[114]. - Revenue from mobile and other products dropped significantly to HKD 1,365,472, down 35.6% from HKD 2,122,087[114]. Cost and Expenses - Operating costs decreased by 18% to HKD 3.772 billion, primarily due to a reduction in inventory costs[18]. - Financing costs increased by 24% to HKD 401 million, mainly due to rising interbank rates[20]. - Financing costs increased to HKD 400,712, up 23.5% from HKD 324,445 in the previous year[121]. - Talent costs amounted to HKD 704,670,000, down from HKD 759,156,000, indicating a decrease of approximately 7.2%[125]. - Advertising and marketing expenses increased to HKD 34,985,000 from HKD 32,864,000, reflecting a rise of about 6.4%[124]. Strategic Initiatives - The company launched innovative solutions such as OFFICE-IN-A-BOX and SHOP-IN-A-BOX to enhance market penetration in the enterprise sector[10]. - A strategic alliance with Nokia aims to introduce the first 25Gbps fiber network in Hong Kong, expected to enhance market share and revenue in the next 12 to 18 months[12]. - The company aims to expand its market position by enhancing partnerships and targeting public institutions and large enterprises[17]. - The company continues to advocate for digital transformation, offering solutions like OFFICE-IN-A-BOX to enhance operational efficiency for businesses[35]. - The company launched the OFFICE-IN-A-BOX platform to promote hybrid work models, integrating communication, collaboration, and cybersecurity technologies with cloud productivity tools[36]. Employee and Workforce - The number of permanent full-time employees decreased by 14% to 4,159[15]. - The company has 4,159 full-time employees as of February 29, 2024, a decrease from 4,428 employees on August 31, 2023[27]. - The total remuneration for key management personnel for the six months ended February 29, 2024, was HKD 35,120,000, compared to HKD 21,792,000 for the same period in 2023, indicating an increase of approximately 60.8%[172]. - The company emphasized a healthy work-life balance by providing attractive benefits and flexible working arrangements[67]. Customer Experience and Satisfaction - The average revenue per household (ARPH) continues to improve due to the unlimited service strategy and the introduction of a new mobile service brand, N mobile[11]. - The average revenue per user (ARPU) for residential services increased by 1% to HKD 181[15]. - Customer satisfaction score for new broadband customers was 4.7 out of 6, while installation/repair service scored 5.74 out of 6[84]. - Customer satisfaction for residential solutions averaged 5.82 out of 6 across various service channels[84]. - The average response rate for customer service hotline during the reporting period was 92%[84]. Debt and Liquidity - As of February 29, 2024, the total cash and cash equivalents amounted to HKD 804 million, down from HKD 1,017 million on August 31, 2023[22]. - Total debt as of February 29, 2024, was HKD 11,461 million, a slight decrease from HKD 11,589 million on August 31, 2023[22]. - The debt-to-equity ratio increased to 4.1 times as of February 29, 2024, compared to 3.8 times on August 31, 2023[22]. - The average financing cost rose to 6.5% as of February 29, 2024, up from 5.3% on August 31, 2023[22]. - The group reported current liabilities exceeding current assets by approximately HKD 273 million as of February 29, 2024[106]. Environmental and Social Responsibility - The company aims to assist 62 small and medium-sized enterprise suppliers in improving their environmental, social, and governance performance based on the results of its first ESG assessment conducted in January 2024[92]. - The company is committed to reducing its environmental impact by implementing energy audits in offices and data centers to improve energy efficiency[85]. - The company collected over 1,600 items through its Free2Share program, promoting the reuse of second-hand goods within the community[85]. - The company organized two interactive sessions to enhance youth awareness of online safety, focusing on social media knowledge and risks associated with deepfake technology[87]. Shareholder and Corporate Governance - The company appointed three accomplished women as independent non-executive directors to enhance board diversity[75]. - The company has issued a total of 1,311,599,356 ordinary shares as of February 29, 2024, unchanged from the previous year[150]. - The company declared an interim dividend of HKD 0.15 per ordinary share for the six months ended February 29, 2024, totaling HKD 196,740,000, a decrease from HKD 262,320,000 for the same period in 2023[151]. - The company has complied with all covenants related to bank loans as of February 29, 2024, and August 31, 2023[147].

Financial Performance - Revenue decreased by 13% to HKD 5.809 billion, primarily due to weaker-than-expected sales performance in mobile and other products. However, core business segments, including fixed-line telecommunications services, technology solutions, and consulting services, showed stable growth of 1% year-on-year [4]. - EBITDA decreased by 4% to HKD 1.151 billion, mainly attributed to soft sales performance in mobile and other products, although operational improvements helped mitigate some of the decline in operating expenses [4]. - Net profit for the six-month period fell by 93% to HKD 2 million, a significant improvement compared to a net loss of HKD 1.267 billion in the previous fiscal year, primarily due to ongoing efforts to enhance core business performance and operational efficiency [4]. - Adjusted free cash flow decreased by 66% to HKD 124 million, impacted by the current high-interest environment, leading to a 51% increase in net interest payments during the review period [4]. - Total revenue for the six months ended February 29, 2024, was 5,809,091 thousand, a decrease of 13% compared to 6,707,216 thousand in the same period of 2023 [9]. - Adjusted net profit for the same period was 85,508 thousand, down 16% from 102,208 thousand in 2023 [9]. - The company reported a significant decline in mobile and other products revenue, which fell by 36% to 1,365,472 thousand from 2,122,087 thousand [9]. - The adjusted free cash flow decreased by 66% to 124,248 thousand compared to 367,648 thousand in the previous year [9]. - Profit attributable to equity shareholders decreased by 93% to HKD 2 million [16]. - Total comprehensive income for the six months ended February 29, 2024, was 6,379 thousand, a decrease of 71.2% from 22,148 thousand in the same period in 2023 [35]. Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.15 per share, down from HKD 0.20 per share in the previous year [4]. - The interim dividend for the first half of 2024 is set at HKD 0.15 per share, down from HKD 0.20 per share in February 2023 [26]. - The total proposed interim dividend amount for 2024 is 196,740 thousand, down from 262,320 thousand for the previous period [69]. - The approved and paid final dividend per ordinary share for the previous fiscal year was 20 cents, consistent with the previous period [70]. - The total amount for the approved final dividend for the previous fiscal year remains at 262,320 thousand [70]. Operational Developments - The company continues to transform its enterprise solutions business into an ICT industry leader, successfully attracting new customers in the public sector and large enterprises to increase market penetration [6]. - New innovative solutions such as Easy IT and AegisConnect have been well received by enterprise customers, enhancing the company's market position in the SME sector [6]. - The company launched a new travel lifestyle communication service brand, N mobile, complementing existing virtual mobile network operator services, providing comprehensive local and roaming communication options [7]. - A strategic alliance with Nokia has been established to pre-sell Hong Kong's first 25Gbps fiber network, expected to enhance market share and revenue from high-margin core services over the next 12 to 18 months [8]. - The company launched new IT solutions like OFFICE-IN-A-BOX and SHOP-IN-A-BOX to address specific industry challenges [14]. Cost Management and Efficiency - The company remains committed to prudent resource management and allocation to maximize growth returns while improving operational and capital expenditure efficiency [8]. - Network costs and sales costs decreased by 18% to HKD 3.772 billion, primarily due to lower inventory costs [15]. - Operating expenses decreased by 7% to HKD 1.628 billion, attributed to cost simplification and reduced depreciation [15]. - Financing costs increased by 24% to HKD 401 million, mainly due to rising bank loan interest rates [15]. - Capital expenditures decreased by 33% to (204,240) thousand from (304,234) thousand year-over-year [9]. Employee and Workforce Changes - The company experienced a 14% reduction in total full-time employees, decreasing from 4,428 to 4,159 [10]. - The group had 4,159 permanent full-time employees as of February 29, 2024, a decrease from 4,428 employees on August 31, 2023 [24]. Financial Position and Debt Management - As of February 29, 2024, the total cash and cash equivalents amounted to HKD 804 million, down from HKD 1,017 million on August 31, 2023 [18]. - Total debt as of February 29, 2024, was HKD 11,461 million, a decrease from HKD 11,589 million on August 31, 2023, resulting in a net debt level of HKD 10,657 million [18]. - The debt-to-equity ratio as of February 29, 2024, was 4.1 times, compared to 3.8 times on August 31, 2023 [18]. - The average cost of financing increased to 6.5% as of February 29, 2024, from 5.3% on August 31, 2023 [18]. - The company is considering refinancing options to improve its capital structure amid economic uncertainty [17]. Market and Revenue Insights - Enterprise solutions revenue declined by 4% to HKD 3.262 billion, while enterprise service revenue (excluding international telecom services) grew by 3% [13]. - Residential solutions revenue slightly decreased by 1% to HKD 1.182 billion, with a focus on enhancing partnerships to improve service offerings [14]. - Average revenue per user (ARPU) for residential services increased by 1% to HKD 181 [15]. - The group's revenue from telecommunications services for the six months ended February 29, 2024, was HKD 2,902,869, a decrease of 4.1% compared to HKD 3,027,861 for the same period in 2023 [47]. - Revenue from product sales for the same period was HKD 2,317,164, down 26.7% from HKD 3,161,818 in 2023 [47]. - The contribution of a single customer accounted for 22.5% of the total revenue for the group during the six months ended February 29, 2024 [49]. Compliance and Governance - The audit committee has reviewed the unaudited interim results for the first half of 2024, ensuring compliance with accounting principles and internal controls [29]. - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange regulations during the first half of 2024 [30]. - No significant events occurred after the reporting period [30]. - The interim report for the first half of 2024 will be published on the Hong Kong Stock Exchange and the company's website [30].

Company Transformation and Services - HKBN Ltd. has transformed from a telecommunications company to an ICT leader, providing essential services across various aspects of modern life[7]. - The company launched Hong Kong's first large-scale 100Mbps internet service in 2004 and became the first city globally to offer 1000Mbps fiber broadband in 2005[8]. - HKBN serves approximately 1 million residential customers and over 100,000 enterprise clients, enhancing their living and operational experiences[20]. - HKBN's services include high-speed fiber broadband, mobile communication services, and various ICT solutions tailored for both residential and enterprise customers[29]. - The company aims to transform from a broadband service provider to a comprehensive ICT service provider, enhancing its market presence[53]. Strategic Focus and Market Expansion - The company aims to maintain competitiveness by continuously enhancing its ICT solutions, including 5G, cloud computing, and AI technologies[8]. - HKBN's strategic focus includes expanding its market presence in Hong Kong, Macau, and mainland China[20]. - Market expansion plans include entering two new regions, aiming for a 25% increase in market share within the next 18 months[46]. - The company is considering strategic acquisitions to bolster its technology capabilities, with a budget of $300 million allocated for potential deals[47]. Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[46]. - User data showed a total of 5 million active subscribers, an increase of 10% compared to the previous quarter[47]. - The company provided guidance for the next quarter, expecting revenue to reach between $1.25 billion and $1.3 billion, indicating a growth rate of 10-15%[49]. - The company reported a net profit margin of 18%, up from 15% in the previous year, reflecting improved operational efficiency[46]. - The company reported a significant increase in revenue, with a year-over-year growth of 15% in Q4 2023[52]. Investments and R&D - The company is investing $200 million in technology research and development to enhance service offerings and improve customer experience[49]. - The company is investing $20 million in R&D for new technologies aimed at enhancing user experience[52]. Sustainability and ESG Initiatives - The company achieved an AAA rating from MSCI for its ESG performance and was upgraded to AA+ by the Hang Seng Sustainable Development Index, ranking in the top 10% among over 500 companies in Hong Kong[36]. - The board of directors emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2025[49]. - The company aims to reduce electricity consumption by 14% in FY2024 compared to FY2022, linking executive compensation to this ESG target[59]. - The company supports the United Nations' 2030 Sustainable Development Goals, integrating these goals into its operations[65]. Management and Leadership - Elinor Shiu has been appointed as the CEO of Hong Kong Broadband, leading the residential market strategy, which contributes 25% to the group's revenue[53]. - Kenneth She has joined as the Business Transformation President, focusing on creating synergies between residential and enterprise business segments[54]. - The management team emphasizes the importance of digital transformation and a multi-channel customer experience strategy[53]. Customer Engagement and Satisfaction - The company emphasizes a mission-driven approach, focusing on delivering customer satisfaction and improving overall business performance[22]. - A new marketing strategy was introduced, focusing on digital channels, expected to increase customer engagement by 30%[51]. - The overall satisfaction score in the talent care survey reached 69%, an increase of 4% from FY2022[60]. Product Launches and Innovations - The launch of Aegis Connect includes AI diagnostics and DDoS protection, enhancing network health awareness for businesses[34]. - The company introduced the world's first residential "fiber broadband dual guarantee" service, covering speeds from 100M to 2000M, with a refund guarantee[35]. - The company launched its first ESG-related solution for corporate clients in the year[60]. - The company launched the Smart Connect: Energy Monitoring ESG solution, enabling businesses to track electricity usage and make informed decisions for cost reduction and sustainability[103]. Employee and Talent Development - The company has a strong focus on talent development and has appointed Catherine Cheng as the Chief Talent Officer to drive HR strategies[54]. - The company plans to increase the proportion of women in technical positions to 27% or above, up from the previous target of 18%[60]. - The company is actively reviewing and comparing its compensation packages to enhance competitiveness in attracting talent[73]. Legal and Compliance - The company has a robust legal and compliance framework, with Sophia Yap leading the legal department and overseeing risk management[54]. - The company has complied with all relevant laws and regulations affecting its operations, including the Telecommunications Ordinance and the Competition Ordinance[106][110]. Shareholder and Financial Governance - The proposed final dividend for the year ending August 31, 2023, is HKD 0.20 per share, consistent with the previous year[113]. - The company aims to distribute dividends of at least 75% of adjusted free cash flow[113]. - The company has not made any charitable donations during the year ending August 31, 2023, consistent with 2022[115].

Revenue Performance - Revenue increased by 1% year-on-year to HKD 11.692 billion, driven by growth in international direct dialing services and a 9% increase in enterprise solutions revenue to HKD 4.825 billion[4] - The company reported total revenue of HKD 11,692,176 thousand for the year ending August 31, 2023, representing a 1% increase from HKD 11,626,164 thousand in the previous year[10] - Total revenue for the year ended August 31, 2023, was HKD 11,692,176, a slight increase from HKD 11,626,164 in 2022, representing a growth of 0.57%[42] - Revenue from fixed telecommunications services was HKD 4,670,790,000, down 0.6% from HKD 4,697,959,000 in the previous year[57] - International telecommunications services revenue increased significantly to HKD 1,117,214,000, up 48.9% from HKD 750,192,000 in 2022[57] - Revenue from technology solutions and consulting services was HKD 1,061,536,000, a slight increase from HKD 1,037,159,000 in 2022[57] - Revenue from product sales was HKD 4,474,348,000, down 6.1% from HKD 4,765,564,000 in the previous year[57] - The residential segment generated revenue of HKD 2,392,820,000, a decrease from HKD 2,433,159,000 in the previous year[57] - The enterprise segment revenue increased to HKD 4,825,008,000, up from HKD 4,427,441,000 in 2022[57] Financial Performance - Adjusted EBITDA decreased by HKD 320 million or 12% to HKD 2.290 billion, primarily due to a 5% increase in network and sales costs to HKD 7.525 billion[4] - The adjusted net profit for the year was HKD 194,634 thousand, a significant decrease of 78% compared to HKD 904,875 thousand in the prior year[10] - The company recorded a loss of HKD 1.267 billion, which included a 194% increase in financing costs (HKD 702 million) and a goodwill impairment of HKD 1.2 billion[4] - The adjusted free cash flow decreased by 33% to HKD 763,249 thousand from HKD 1,133,253 thousand in the previous year[10] - The company reported a significant increase in financing costs to HKD 702,303 from HKD 239,204 in the previous year, indicating a rise of approximately 194%[42] - The company reported a net loss before tax of 1,231,331 thousand HKD in 2023, compared to a profit of 712,216 thousand HKD in 2022[65] - Basic loss per share for 2023 was 1,267,408 thousand HKD, compared to a profit of 553,321 thousand HKD in 2022, indicating a significant downturn[74] Operational Developments - The company aims to transition from traditional telecommunications to becoming a leader in Information and Communications Technology (ICT) by leveraging past investments in fixed-line infrastructure[5] - The introduction of AegisConnect aims to enhance core telecommunications services with AI diagnostics and DDoS protection, targeting mid-sized enterprises[6] - The management team has made significant progress in strengthening operations following the acquisition of Jardine One Solution, which faced integration challenges due to the pandemic[5] - The company continues to strengthen its position as a leading OTT entertainment operator in Hong Kong through partnerships with major content platforms[7] - The company accelerated the transformation of its enterprise business, providing comprehensive digital transformation solutions[15] - New contracts signed during the year generated strong momentum, offsetting revenue declines from previous years[15] Market and Customer Insights - The overall market for broadband services is expected to grow in line with population growth, as penetration rates have reached maturity[5] - The company provides customized services to 1,000 large enterprise clients and productized services to mid-sized and small enterprises, emphasizing its competitive market scale[6] - The company shifted its focus in residential business from customer acquisition through discounts to increasing ARPU through price hikes[15] - The company expects it will take 2 to 3 years for the increased ARPU to fully reflect in its overall contract base[15] - Broadband users decreased by 2% to 117,000, while voice users fell by 6% to 388,000[11] - The number of enterprise customers decreased by 4% to 101,000, while residential broadband users increased by 3% to 920,000[11] - The residential ARPU decreased by 3% to 179 HKD from 184 HKD year-over-year[11] Dividend and Shareholder Information - The adjusted free cash flow is considered a good indicator of cash-generating ability, with a proposed final dividend of HKD 0.20 per share, down 33% from the previous year[4] - The company plans to maintain a consistent dividend policy, ensuring that adjusted free cash flow remains at least 75% of the dividend payout ratio[4] - The company plans to distribute a final dividend of HKD 0.20 per share for the year ended August 31, 2023, consistent with the previous year[32] - The proposed final dividend per ordinary share for the year ended August 31, 2023, is also 20 cents, consistent with the previous year[80] Employee and Corporate Governance - The total number of full-time employees decreased by 9% to 4,428 from 4,864[11] - The group reported a 9% decrease in permanent full-time staff, with 4,428 employees as of August 31, 2023, down from 4,864 in 2022[29] - The company has adopted four restricted share unit plans to attract and retain skilled talent since its listing[30] - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations[38] - There have been no significant events occurring after the reporting period[40] Financial Position and Debt Management - As of August 31, 2023, the group's cash and cash equivalents totaled HKD 1.017 billion, down from HKD 1.129 billion in 2022, while total debt was HKD 11.589 billion, compared to HKD 11.865 billion in 2022[22] - The net debt level as of August 31, 2023, was HKD 10.572 billion, a decrease from HKD 10.736 billion in 2022, resulting in a debt-to-equity ratio of 3.8 times, up from 2.4 times in 2022[22] - The group's net debt to EBITDA ratio was approximately 5.1 times as of August 31, 2023, compared to 4.6 times in 2022, with an average cost of financing at 5.3%, up from 2.7% in 2022[23] - The group has established interest rate swap arrangements totaling HKD 3.9 billion to mitigate interest rate risks, maintaining the risk at an annual level of 0.399%[24] - The management anticipates that cash inflows from operations, along with the ability to utilize existing bank loans, will be sufficient to meet the obligations as they come due[49]

Financial Performance - Total revenue for the six months ended February 28, 2023, was HKD 6,707,216, a decrease of 1.4% from HKD 6,803,050 in the same period last year[17]. - The adjusted net profit for the period was HKD 102,208, down 78.7% from HKD 479,790 year-on-year[17]. - The adjusted free cash flow for the period was HKD 367,648, a significant decrease from HKD 715,990 in the previous year[17]. - The company reported a 92% decline in profit for the period, amounting to HKD 23,238 compared to HKD 304,330 in the prior year[17]. - For the six months ended February 28, 2023, revenue decreased by 1% to HKD 67.07 billion, adjusted EBITDA decreased by 6% to HKD 11.96 billion, and adjusted free cash flow decreased by 49% to HKD 3.68 billion[22]. - The company reported a profit before tax of HKD 11,042 for the six months ended February 28, 2023, down from HKD 384,687 in the previous year[149]. - The company’s external customer reportable segment profit was HKD 1,132,008, a decrease of 13.2% from HKD 1,304,642[149]. - The company recorded a financing cost of HKD 324,445, significantly higher than HKD 106,420 in the previous year[149]. - The company’s total product revenue was HKD 3,161,818, down from HKD 3,287,782, a decrease of 3.8%[143]. Revenue Segments - The corporate solutions segment generated revenue of HKD 2,348,457, an increase of 2.5% from HKD 2,290,870 year-on-year[17]. - The mobile and other products segment saw revenue rise to HKD 2,122,087, up 6.5% from HKD 1,992,865 in the previous year[17]. - Enterprise solutions revenue increased by 3% to HKD 23.48 billion, primarily due to an increase in wholesale IDD revenue[22]. - Residential solutions revenue slightly decreased by HKD 27 million or 2% to HKD 11.97 billion amid intense market competition[22]. - Fixed telecommunications network services revenue was HKD 2,326,218, slightly up from HKD 2,322,403, reflecting a growth of 0.03%[143]. - International telecommunications services revenue increased by 17.5% to HKD 519,777 from HKD 442,584 year-on-year[143]. Cost and Expenses - Financing costs increased by 205% year-on-year to HKD 3.24 billion, mainly due to changes in fair value of interest rate swaps and increased interest expenses[22]. - Adjusted net profit decreased by 79% to HKD 1.02 billion, primarily due to increased financing costs and losses from joint ventures[23]. - The company incurred advertising and marketing expenses of HKD 186,987,000 for the six months ended February 28, 2023, compared to HKD 172,472,000 in the previous year, representing an increase of approximately 8.8%[151]. - The company’s depreciation expense for property, plant, and equipment was HKD 368,175,000 for the six months ended February 28, 2023, compared to HKD 355,454,000 in the same period of 2022, indicating an increase of about 3.5%[153]. Employee and Talent Management - The total number of permanent full-time employees increased by 3% to 4,834[22]. - The company has 4,834 full-time employees as of February 28, 2023, a slight decrease from 4,864 employees on August 31, 2022[29]. - The company organized 8 different recruitment days in collaboration with various NGOs to enhance diversity in hiring[79]. - The overall employee satisfaction rate increased to 65%, a 7% rise from the previous survey conducted in December 2021[73]. - The company emphasizes a culture of lifelong learning, offering tailored training programs to support career development[75]. - During the reporting period, the company provided approximately 39,000 hours of training to ensure employees are equipped with necessary skills and knowledge[76]. Customer Experience and Service Quality - Customer service hotline achieved an average response rate of 89% during the reporting period[102]. - The average time from customer request to installation completion was 1.1 days, with 99.96% of repair appointments scheduled within two working days[100]. - Customer satisfaction score for residential service channels averaged 5.78 out of 6 during the reporting period[103]. - The company implemented a complaint management system to address unresolved cases, aiming to resolve complaints within six working days[104]. - The average customer satisfaction score during the reporting period was 5 out of 6[107]. ESG and Community Engagement - The company achieved an MSCI ESG rating upgrade to AAA, placing it among the top 9% of telecommunications companies globally[16]. - The company aims to enhance its corporate and residential customer ESG capabilities, which is expected to create more opportunities[15]. - The company is committed to continuous improvement and innovation in its service offerings to adapt to the competitive landscape[44]. - The company provided 500 free broadband internet connections for 24 months to underprivileged groups through partnerships with three social welfare organizations[90]. - A free cybersecurity risk assessment was conducted for 50 social welfare organizations, revealing that 32% faced medium to high risks of cyberattacks[87]. Network and Infrastructure Development - The company has invested hundreds of billions of HKD in network infrastructure since 1995, enhancing its competitive advantage in the ICT sector[6]. - The company aims to enhance its network infrastructure and service coverage to provide superior connectivity and value to customers[34]. - The company expanded its fiber network coverage by adding 30,186 residential units and 27 commercial buildings during the reporting period, bringing total coverage to approximately 2,543,000 households and over 8,000 commercial buildings[120]. - The company upgraded its GPON platform to enhance service sustainability and is developing XGS (10G) PON for new services[121]. Strategic Initiatives and Future Outlook - The company expects a J-shaped recovery trend to continue, with significant improvements anticipated in the second half of 2023 compared to the first half[24]. - The company aims to create a one-stop ecosystem for customers, allowing them to enjoy integrated billing benefits through a diverse range of services and products[45]. - The company is collaborating with OpenRice to enhance its O2O dining technology services, facilitating expansion into other Asia-Pacific markets, including Singapore and Japan[52]. - The company anticipates growth opportunities in mainland China following the lifting of COVID-19 restrictions, with plans to recruit new talent and establish offices in major cities[57]. Governance and Compliance - The company has established a strict policy regulating the collection, use, and management of customer data, ensuring confidentiality and compliance with privacy regulations[111]. - The company received a warning from the Hong Kong Privacy Commissioner in January 2023 regarding a privacy-related case and has taken necessary actions to prevent future occurrences[112]. - The company ensures that all marketing materials comply with relevant laws and regulations, with prior approval from legal and senior management teams[106]. - The company has implemented a supplier code of conduct since December 2020, ensuring compliance with governance, labor conditions, health and safety standards, and environmental protection[130].

Revenue and Profitability - Revenue for the six months ended February 28, 2023, was HKD 6.707 billion, with a year-on-year growth rate of 2% excluding the sale of subsidiaries[4] - Revenue for the six months ending February 28, 2023, was HKD 6,707,216, a decrease of 1% compared to HKD 6,803,050 for the same period in 2022[18] - Adjusted net profit for the same period was HKD 102,208, down 79% from HKD 479,790 in the previous year[18] - The company reported a revenue decrease of 1% to HKD 6.707 billion for the first half of 2023[23] - Adjusted EBITDA decreased by 6% to HKD 1.196 billion[23] - Profit attributable to equity shareholders decreased by 92% to 23 million, reflecting a significant reduction in pre-tax profit[25] - Adjusted net profit decreased by 79% to 102 million, primarily due to increased financing costs and losses from joint ventures[25] - Basic earnings per share for the period were HKD 0.0618, compared to HKD 0.232 in the same period last year[51] Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.20 per share, down from HKD 0.40 per share in the same period last year[4] - The board has declared an interim dividend of HKD 0.20 per share for the first half of 2023, down from HKD 0.40 per share in the same period of 2022[42] - The company aims to distribute at least 75% of adjusted free cash flow as dividends, considering financial performance, investment needs, and market conditions[42] Financial Position and Cash Flow - The company reported a significant decline in free cash flow, which was HKD 367,648, down 49% from HKD 715,990 in the previous year[18] - Adjusted free cash flow fell by 49% to HKD 368 million[23] - As of February 28, 2023, total cash and cash equivalents amounted to 980 million, down from 1.129 billion on August 31, 2022[27] - The net debt level was 10.765 billion, with a debt-to-equity ratio of 2.5 times as of February 28, 2023[27] - The company reported a current liability exceeding current assets by approximately 285 million HKD, indicating potential liquidity concerns[57] - The company anticipates sufficient cash inflows from operations and existing bank financing capabilities to meet its obligations as they come due[57] Business Segments and Revenue Sources - The main business segments include fixed telecommunications services, international telecommunications services, mobile communications services, and system integration services[59] - Revenue is derived from providing services to residential and enterprise customers, with a focus on telecommunications and related products[60] - For the six months ended February 28, 2023, total revenue from telecommunications services was HKD 3,027,861, an increase from HKD 2,948,243 in the same period of 2022, representing a growth of approximately 2.8%[61] - International telecommunications services revenue increased to HKD 519,777, up 17.5% from HKD 442,584 in the previous year[61] - Revenue from mobile and other products rose to HKD 2,122,087, reflecting an increase of 6.5% compared to HKD 1,992,865 in the prior year[62] Operational Performance and Costs - Adjusted EBITDA was HKD 1.196 billion, representing a year-on-year decrease of 6%[4] - The company incurred financing costs of HKD 324,445, significantly higher than HKD 106,420 in the previous year[51] - Total operating expenses amounted to 1,746,248 thousand, down from 1,839,751 thousand, representing a decrease of about 5.1%[68] - The cost of goods sold was reported at 3,004,833 thousand, slightly down from 3,087,159 thousand, indicating a decrease of approximately 2.7%[71] Employee and Talent Management - The total number of full-time employees increased by 3% to 4,834[20] - The group has implemented four shareholding plans to attract and retain skilled talent, with the latest plan (Plan IV) adopted on October 21, 2021[39] - The group provides a comprehensive medical coverage and competitive retirement benefits plan for its employees[34] Market Strategy and Future Outlook - The strategy involves leveraging system integration to drive growth in the telecommunications business, positioning the company as a leader in the ICT industry[6] - The company aims to assist clients in planning their ICT budgets for the next three years, with SI expenditures typically 10 to 20 times higher than pure telecommunications spending[6] - The company plans to expand its telecommunications and technology services in regions including mainland China, Macau, Singapore, and Malaysia[65] - The company is focusing on enhancing its product offerings and technology solutions to drive future growth and market expansion[64] Governance and Compliance - The company has complied with all corporate governance codes as outlined in the listing rules during the first half of 2023[46] - The company’s external auditors have reviewed the interim financial results for the first half of 2023 in accordance with the relevant auditing standards[45]

Financial Performance - Revenue for the fiscal year reached HKD 11.6 billion, representing a 1% growth[4] - Adjusted net profit increased by 2%, with EBITDA growth of 20%[4] - Revenue for the last quarter was reported at $200 million, representing a 15% increase compared to the previous quarter[39] - The company has set a future outlook with a revenue guidance of $850 million for the next fiscal year, indicating a projected growth of 10%[38] - The company reported a significant increase in user data, with a year-over-year growth of 25% in active subscribers, reaching 1.5 million users[36] - The company reported a significant increase in user data, with a growth rate of 15% year-over-year in active subscribers[41] - The management team highlighted a revenue increase of 20% for the fiscal year, reaching HKD 1.5 billion[41] - Total revenue for the year ended August 31, 2022, was HKD 11,626,164, representing a 1% increase from HKD 11,463,745 in the previous year[78] - Adjusted net profit increased by 20% to HKD 904,875 from HKD 755,975 year-over-year[78] - Adjusted EBITDA rose by 2% to HKD 2,609,053 compared to HKD 2,568,507 in the prior year[79] Market Position and Strategy - The residential broadband service market share was 34% as of July 31, 2022, while the commercial broadband service market share was 37%[4] - The company achieved a customer base covering over 2.5 million households, including 8,000 commercial buildings[4] - The total IT spending in the enterprise market in Hong Kong is estimated to be approximately HKD 87 billion, indicating significant market potential for the company's services[25] - The company aims to enhance its ICT service offerings across Hong Kong, Macau, mainland China, Singapore, and Malaysia[11] - The company is actively pursuing market expansion strategies, targeting a 20% increase in market share within the next two years[35] - Future outlook includes an expansion strategy targeting a 25% increase in market share over the next three years[46] - The company has successfully integrated New World Telecom, WTT, and JOS, positioning itself as the second-largest telecommunications and a strong ICT system integration service provider in the market[25] - The company expects its mainland business to potentially double in the next three years under a solid growth strategy[26] Innovation and Technology - The company provides a comprehensive range of services, including high-speed fiber broadband, Wi-Fi management, and digital solutions for both residential and enterprise customers[19][20] - Research and development investments have increased by 30%, focusing on innovative technologies to improve service delivery[34] - The company is investing in new technology development, with a budget allocation of HKD 200 million for R&D in the upcoming fiscal year[47] - The company is focusing on innovation and technology development, investing significantly in R&D to enhance product offerings and customer experience[169] - The company is establishing a new "professional as a service" model to meet the increasing demand for IT services, including device repair and network troubleshooting[158] Customer Experience and Satisfaction - The company aims to achieve a customer satisfaction rate of 90% by the end of the fiscal year[46] - A new customer loyalty program is set to launch, expected to increase customer retention rates by 15% over the next year[37] - The company is committed to continuous improvement in customer service and is prepared to offer innovative solutions to support business growth[108] - The company is actively enhancing customer experience through digital services and innovative solutions to meet evolving customer demands[108] Environmental, Social, and Governance (ESG) - The management team emphasized the importance of environmental, social, and governance (ESG) initiatives, aiming for a 40% reduction in carbon emissions by 2025[38] - The company aims to achieve a cumulative success rate of at least 88% in the special reward program related to ESG, focusing on talent sharing and risk-sharing[57] - The company plans to increase the proportion of women in technical positions to 18% or above[57] - New ESG-themed solutions will be launched annually to address market needs[57] - The company has established a new advisory board to enhance strategic decision-making, comprising industry experts with over 25 years of experience[39] - The company adheres to the reporting principles outlined in the ESG guidelines and SASB standards, ensuring transparency and accountability in its disclosures[61] - The board of directors oversees the overall ESG strategy and performance, with members receiving annual training to enhance their knowledge in this area[63] - The ESG committee is responsible for reviewing and monitoring the company's ESG strategies and risk management policies[64] Employee Engagement and Culture - Employee satisfaction score reached 65% in the talent care survey[5] - The representation of women in technical positions stands at 12.5%[6] - The company emphasizes a unique culture of shared interests and risk, fostering a collaborative environment among its talent[14] - The company is focused on maintaining strong relationships with stakeholders and providing professional development opportunities for its talent[103] - The company has adopted four employee share plans to attract and retain skilled talent, with the latest plan (Plan IV) adopted on October 21, 2021[126] - The company’s unique stock ownership culture offers employees a chance to benefit as shareholders, aligning their interests with the company's objectives[195] - The company emphasizes fair and competitive compensation, with annual reviews to align salaries with employee performance and market trends[199] Acquisitions and Partnerships - The company is exploring potential mergers and acquisitions to enhance its competitive position, with a budget of $100 million allocated for this purpose[36] - HKBN has established a strategic partnership with StarHub, acquiring 60% stakes in HKBN JOS Singapore and HKBN JOS Malaysia, enhancing competitiveness through cross-selling and additional sales skills[163] - The company aims to strengthen partnerships with world-class suppliers to expand coverage in key market segments and accelerate business growth[88] - The company has engaged in a series of acquisitions, including cloud solution experts and top system integrators, to enhance its technology and infrastructure capabilities[160] Operational Efficiency - The company is focused on transforming its enterprise business and enhancing system integration capabilities[82] - The company is adjusting internal workflows to make processes faster, more accurate, and more efficient to meet growth demands[157] - The company has implemented internal controls and training to ensure compliance with various applicable laws and regulations, including the Telecommunications Ordinance and the Competition Ordinance[110][113] - The company has established a framework for monitoring supplier performance and addressing any issues proactively[109]