Financial Performance - Revenue for the fiscal year 2024 reached HKD 10.7 billion[4] - Revenue for the fiscal year 2024 was HK11.69 billion in 2023[64] - Enterprise solutions revenue remained stable at HK4.83 billion in 2023[64] - Residential solutions revenue slightly decreased to HK2.39 billion in 2023[64] - Mobile and other products revenue dropped significantly to HK2.54 billion in 2023[64] - Net profit for 2024 was HK1.27 billion in 2023[64] - Adjusted EBITDA increased to HK2.29 billion in 2023[64] - Adjusted free cash flow decreased to HK763.25 million in 2023[64] - Net profit for the year increased significantly from a loss of 1,267,408 in 2023 to a profit of 10,277 in 2024, representing a change of over 100%[66] - Goodwill impairment decreased by 100% from 1,200,000 in 2023 to 0 in 2024[66] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased slightly from 2,289,914 in 2023 to 2,364,759 in 2024[66] - Adjusted free cash flow decreased from 763,249 in 2023 to 620,145 in 2024[66] - Residential ARPU (Average Revenue Per User) increased by 2% from 182 in 2024[68] - Total revenue for the fiscal year 2024 decreased by 9% to 10.651 billion[71] - Enterprise solutions revenue decreased slightly by 1% to 6.675 billion, with enterprise service revenue (excluding international telecom services) growing by 1%[71] - Residential solutions revenue decreased by 2% to 2.344 billion, with a strategic focus on direct subscriptions and reducing resale business[73] - The company achieved a profit of 10 million yuan in FY2024, reversing a loss of 1.267 billion yuan in FY2023[74] - EBITDA increased by 3% year-on-year to 2.365 billion yuan, driven by operational improvements and reduced operating expenses[74] - Adjusted free cash flow decreased by 19% year-on-year to 620 million yuan, mainly due to increased net interest paid and reduced operating cash inflows[75] - Cash and cash equivalents totaled 1.217 billion yuan as of August 31, 2024, with total debt at 11.528 billion yuan, resulting in a net debt level of 10.311 billion yuan[79] - The company's net debt to EBITDA ratio was 4.9x as of August 31, 2024, compared to 5.1x in the previous year[80] - The company proposes a final dividend of 16.5 cents per share for the fiscal year ending August 31, 2024, compared to 20 cents per share in the previous year[98] - The company's distributable reserves as of August 31, 2024, amounted to 4,802,950,000 HKD, down from 4,870,698,000 HKD in 2023[101] - The company will pay 27,608,165 HKD to the holders of the seller loan notes based on the final dividend of 16.5 cents per share[99] ESG and Sustainability - Electricity consumption decreased by 14% compared to the fiscal year 2022[5] - Scope 1 and Scope 2 emissions were reduced by 19.24% compared to the fiscal year 2022[6] - The company successfully reduced electricity consumption by 14% in FY2024 compared to FY2022, aligning with ESG goals[43] - The proportion of women in technical roles reached 25.7%, close to the target of 27% by FY2025[43] - The average failure rate in phishing assessments was 1.49% in FY2024, below the target of 2%[43] - Residential network service downtime decreased by 11.3% in FY2024 compared to FY2022, nearing the 14% reduction target[45] - The company launched Aegis Intelligence, an upgraded network monitoring platform to enhance cybersecurity and governance[43] - 70% of general service contracts were processed electronically in FY2024, improving customer experience[43] - The company distributed ESG questionnaires to selected SME suppliers in FY2024 to assess their ESG performance[45] - The company's climate action targets were approved by the Science Based Targets initiative (SBTi)[43] - The overall care score in the employee care survey reached 66% satisfaction in FY2024, approaching the 70% target[43] - The company aims to increase female representation on the board to over 50% in the coming years[45] - The company maintained an AAA rating in the MSCI ESG Ratings since December 2022, placing it among the top 14% of global telecommunications companies[47] - The company achieved a AA+ rating in the Hang Seng Sustainability Index, reinforcing its position as a leader in ESG in Hong Kong[47] - The company successfully reduced electricity consumption by 14% in FY2024 compared to FY2022, meeting its ambitious target[53] - The company's ESG governance is integrated across all levels, including the Board of Directors, ESG Committee, and ESG Working Group[52] - The company's ESG strategy is executed by business departments, which coordinate and review progress across various ESG areas[54] - The company engages with stakeholders through multiple channels, including customer satisfaction surveys, investor meetings, and community projects[56] - The company's ESG reporting adheres to the ESG Reporting Guide of the Listing Rules, SASB Telecommunications Standards, and TCFD recommendations[50] - The company aligns its work with the United Nations' 2030 Sustainable Development Goals (SDGs) to contribute to long-term prosperity for people and the planet[50] - The company's Board of Directors oversees and is responsible for the ESG strategy, development, and performance[55] - The company's ESG Committee provides recommendations on ESG-related frameworks and business models, and oversees communication and disclosure matters[52] - The company's recent science-based carbon reduction targets have been approved by SBTi[58] - The board's gender diversity has improved, with female representation exceeding 50% at the time of the report[58] - The company has completed its first physical and transitional climate scenario analysis, identifying climate-related risks and opportunities[59] - The company achieved a 14% reduction in electricity usage in FY2024 compared to FY2022, aligning with senior management's ESG-related compensation goals[195] Network and Service Expansion - The company's network coverage reached 2.6 million households and 200 commercial buildings, including 100% Grade A and Grade B properties[4] - The company launched Hong Kong's first 25Gbps broadband service, enhancing its ICT solutions for enterprise customers[2] - The company launched 10Gbps to 25Gbps services in its high-margin FTNS business, offering speed and latency guarantees to meet regulatory requirements and enhance customer acquisition and retention[11] - The company introduced a diversified IT services portfolio, including hybrid and multi-cloud solutions, and the HKBNCare+ IT-as-a-Service plan for enterprise customers[11] - In the residential market, the company focused on increasing Average Revenue Per Household (ARPH) by offering OTT video content, home insurance, and healthcare services[11] - The company expanded its competitive edge by providing data card services to 7.5 million citizens in Hong Kong, avoiding direct competition with traditional mobile operators[11] - Introduced the latest 25G PON technology, bringing Hong Kong into a new era of high-speed connectivity[32] - Transformed the internal network operations center into a Network Operations Center as a Service provider, benefiting Hong Kong's digital community and enterprises[32] - Successfully led the transformation from a broadband service provider to a popular quadruple-play service provider in Hong Kong[35] - Managed 25% of the company's Hong Kong residential business revenue as the "District CEO" for the Kowloon East region[35] - Launched Hong Kong's first 25Gbps fiber broadband service, offering speeds 25 to 250 times faster than current standards, enabling seamless experiences for Wi-Fi 8, 8K video, AI, AR, and VR applications[163] - Introduced Aegis Intelligence, an upgrade to the AegisInsight network performance monitoring platform, integrating generative AI for real-time network diagnostics and proactive management, serving over 1,000 companies and institutions[164] - Launched Multi-Cloud Connect, Hong Kong's first comprehensive cloud delivery service, providing high-speed, secure, and visible connections to major public clouds, addressing operational complexity and cost efficiency for 98% of enterprises adopting multi-cloud strategies[165] - Became Hong Kong's first certified Alibaba Cloud Landing Zone partner, offering tailored cloud solutions for efficient cloud navigation, security compliance, and cost control[166] - SHOP-IN-A-BOX solution introduced, providing retailers with a one-stop IT solution for simplified network connectivity, enhanced security, and improved operational efficiency through IoT and advanced applications[168] - OFFICE-IN-A-BOX solution enhances hybrid work efficiency with advanced communication and productivity tools, focusing on meeting room and digital communication equipment, secure data storage, physical security, and network security[169] - HKBNCare+ sold nearly 40,000 tokens in FY2024, equivalent to approximately 40,000 hours of IT services, supporting SMEs with comprehensive IT services[170] - Hong Kong Broadband Network became the first in Asia to achieve all seven professional certifications under Fortinet's Engage program, enhancing digital transformation support capabilities[171] - AegisConnect AI, launched in November 2023, leverages Palo Alto Networks' Cortex XDR technology to provide advanced network protection and threat response[172] - RUCKUS AI Wi-Fi managed service reduces problem resolution time by up to 70% and IT staff handling time by 60%, offering enhanced network performance and seamless user experience[174] - The exclusive four-in-one medical service plan, in partnership with Bowtie, offers unlimited video consultations, home delivery of medicines, annual health check-ups, flu vaccinations, and bi-annual dental services for HK248 per month[177] - N mobile, launched in December 2023, offers flexible data plans and innovative "pay-after-use" roaming data services to meet evolving consumer needs[178] - N mobile offers comprehensive mobile communication services for both local and overseas needs, providing a one-price solution with various partner benefits[179] - Hong Kong Broadband pioneered the first 100Mbps service in Hong Kong and launched the world's first 1Gbps residential broadband service in 2005, revolutionizing internet speed standards[181] - Hong Kong Broadband will launch Hong Kong's first 25Gbps broadband service in 2024, with full coverage expected by 2025, marking a significant leap in internet speed[182] - The 25Gbps service will enable ultra-smooth 8K video streaming, instant large file downloads, and zero-latency online gaming, transforming home entertainment and smart home operations[183] - For businesses, the 25Gbps service will redefine operations across industries, enabling real-time collaboration, AI, machine learning, and big data analytics to drive innovation and expansion[184] - Hong Kong Broadband's "Infinite One" strategy integrates fiber broadband, home phone, mobile, and OTT services, serving nearly 1 million residential customers, or one-third of Hong Kong households[186] - The company has partnered with AXA to offer home insurance as part of its service bundle, simplifying the moving process and providing additional home security[186] - Hong Kong Broadband introduced a comprehensive healthcare service plan, including unlimited video consultations, drug delivery, dental care, and vaccinations, starting at $99 per month[187] - The healthcare plan, developed in collaboration with Bowtie, redefines affordable and comprehensive health coverage, setting a new standard in the market[188] - N mobile offers customizable 5G and 4G plans tailored for travelers, providing competitive pricing and user rewards, revolutionizing the mobile communication landscape[189] - Priority Plus home Wi-Fi solution integrates TP-Link's Aginet network management platform with 2000M fiber broadband, ensuring seamless connectivity and advanced remote monitoring[190] Leadership and Organizational Changes - Samuel Hui led the launch of Hong Kong Broadband's mobile services in 2016, marking the company's first major expansion beyond broadband[28] - Hong Kong Broadband's mobile services became the fastest-growing mobile operator in Hong Kong, achieving over 2% penetration in the competitive postpaid mobile market within two years[28] - Samuel Hui was appointed as Digital Transformation President in 2020, leading the company's group-wide digital transformation strategy[28] - In 2021, Samuel Hui integrated Jardine One Solutions (JOS) into Hong Kong Broadband, combining strengths to offer comprehensive ICT solutions to enterprise customers[28] - By 2023, Samuel Hui was promoted to Strategy President - Enterprise Solutions, driving the productization and commercialization of Hong Kong Broadband's technical capabilities[28] - In 2024, Samuel Hui was appointed as Operations President, leading the ICT Beyond Strategy for Hong Kong Broadband's enterprise solutions[29] - Gabriel Leung, with over 30 years of experience in ICT, led Hewlett Packard Enterprise (HPE) Hong Kong and Macau to achieve significant revenue growth and won the HPE Asia Pacific Region of the Year Award in 2022[30] - Gabriel Leung successfully transformed Hong Kong Telecommunications International Holdings Limited from a telecom business to an innovative ICT services provider, achieving double-digit growth in 2016[31] - During his tenure at EMC Corporation from 1999 to 2015, Gabriel Leung contributed to a tenfold increase in company revenue[31] - Appointed as the Group President and COO in 2024, focusing on enhancing customer and shareholder experiences through innovation[38] - Previously served as Global Senior Vice President at EMC Corporation and Dell, leading strategic expansion in Greater China[38] Employee and Compensation Initiatives - Female representation in technical roles increased to 5.7%[5] - The company trained approximately 10,000 employees through free cybersecurity phishing email drills[6] - The proportion of women in technical roles reached 25.7%, close to the target of 27% by FY2025[43] - The overall care score in the employee care survey reached 66% satisfaction in FY2024, approaching the 70% target[43] - 58.4% of managerial-level or above employees participated in the revised Co-Ownership Plan IV (CO4) by August 31, 2024, with incentives tied to company performance[196] - The company emphasizes fair and competitive compensation, including performance bonuses, retirement plans, and health benefits, aligned with market standards[197] - Initiatives to enhance employee well-being and work-life balance include mental health support and fostering a joyful workplace culture, with progress tracked against FY2025 goals[198] - The company celebrated its office relocation to Kwun Tong with a partnership with WEDO Global, supporting social enterprises and recognizing long-serving employees[200] Shareholder and Investment Information - Canada Pension Plan Investment Board holds 182,405,000 shares, representing approximately 13.91% of the company's total issued share capital[111] - GIC Private Limited holds 91,913,760 shares, representing approximately 7.01% of the company's total issued share capital[111] - TPG GP A, LLC holds 144,966,345 shares, representing approximately 11.05% of the company's total issued share capital[111] - Michael ByungJu KIM and Bryan Byungsuk MIN each hold 144,966,345 shares, representing approximately 11.05% of the company's total issued share capital[111] - GIC Private Limited holds 91,913,760 shares, representing approximately 7.0% of the company's total issued shares[112] - TPG Group entities hold 144,966,345 directly issued shares and 83,661,106 related shares (due to convertible instruments)[112] - Michael ByungJu KIM and Bryan Byungsuk MIN each hold 144,966,345 directly issued shares and 83,661,106 related shares through Twin Holding Ltd[113] - As of August 31, 2024, the company has issued a total of 5,251,862 reward shares under the Co-Investment Plan II, representing 0.40% of the weighted average number of issued shares[127] - 414,804 shares remain available for future grants under Co-Investment Plan II, representing approximately 0.03% of total issued shares as of August 31, 2024[122] - The company allocated 5,666,666 shares (0.43% of total issued shares) to the trustee of Co-Investment Plan II at the time of listing[122] - Co-Investment Plan II has a matching ratio of 7:3 (7 shares purchased for 3 restricted share units granted)[123] - No restricted share units were granted, canceled, vested, or lapsed during the year ending August 31, 2024 under Co-Investment Plan II[127] - Co-Investment Plan III Plus expired in October 2023 without any restricted share units being granted, forfeited, or vested[128] - The purpose of Co-Investment Plan III Plus included supporting charitable projects in Hong Kong and aligning with the company's mission of "Building a Better Home"[129] - The maximum number of shares available for issuance under the Co-ownership Plan III Plus is 44,367,647 shares, representing 3.0% of the issued shares at the time of approval[134] - No restricted share units have been granted under the Co-ownership Plan III Plus since its inception, and as of the report date, 0% of the issued shares are available for issuance under this plan[134] - The Co-ownership Plan III Plus expired in October 2023, and no restricted share units were granted, forfeited, vested, or lapsed due to the company's cumulative adjusted distributable cash per share falling below the minimum level of HKD 2.53 for the 2019-2021 fiscal years[139] - The revised and restated Co-ownership Plan IV allows for a maximum of 36,973,039 shares, representing approximately 2.50% of the issued shares on a fully
香港宽频(01310) - 2024 - 年度财报