中信国际电讯(01883) - 2022 - 年度财报

Global Network and Subsidiary Achievements - The company's global network nodes exceed 160, covering over 150 countries and regions, connecting more than 600 operators and serving over 3,000 multinational enterprises and 40,000 local businesses[3] - The company's subsidiary, Acclivis, obtained an Internet Service Provider (ISP) license in Indonesia in May 2022[7] - The company's global traffic trading platform, "DataMall Free Travel," launched a targeted data package using DPI (Deep Packet Inspection) technology in June 2022[7] - The company's subsidiary, CPC, won the "Outstanding Information and Communication Technology Service Provider 2021" award at the Hua Fu Financial Outstanding Enterprise Awards 2021[7] - The company's subsidiary, Macau Telecom, signed a 5G application cooperation agreement with the Macau Live Streaming Association in February 2022[6] - The company's subsidiary, Acclivis, won the "2021 IBM Innovation Award (Build)" for its collaboration with IBM Cloud Satellite[7] - The company's subsidiary, CPC, received the "Best Innovative Value-Added Service Provider" award at the CC-Global Awards 2022[7] - The company's subsidiary, CPC, was awarded the "Excellence in Network Security Management Services and Cloud Solutions" at the Capital Excellence E-Commerce Awards 2022[7] - The company's subsidiary, Acclivis, won the "2021 Business Partner Award" at the Red Hat ASEAN Partner Synergy Awards[7] - The company's subsidiary, CPC, won the "Artificial Intelligence and Data Center Project" award at the 2022 Singapore Business Review Excellence in Technology Awards for its DataHOUSE™ AI-AR solution[7] Financial Performance - 2022 net profit attributable to shareholders was HKD 1.191 billion, a year-on-year increase of 10.7%[12] - Total dividends per share for 2022 were 24.5 HK cents, a year-on-year increase of 8.9%[12] - Net debt as of December 31, 2022, was HKD 2.534 billion, a decrease of 30.6% compared to the previous year[12] - Telecom service revenue for 2022 was HKD 8.831 billion, an increase of 11.7% year-on-year[14] - Sales revenue from mobile phones and equipment decreased by 19.0% to HKD 1.280 billion in 2022[14] - EBITDA for 2022 was HKD 2.657 billion, a year-on-year increase of 5.9%[14] - Basic earnings per share increased by 10.2% to 32.3 HK cents in 2022[14] - Total assets decreased by 1.1% to HKD 18.181 billion in 2022[14] - Shareholders' equity attributable to the company increased by 2.8% to HKD 10.373 billion in 2022[14] - Net gearing ratio decreased by 7.0% to 20% in 2022[14] - Total revenue for 2022 reached HKD 10.111 billion, a 6.6% increase compared to HKD 9.486 billion in 2021[17] - Net profit attributable to shareholders in 2022 was HKD 1.191 billion, up 10.7% from HKD 1.076 billion in 2021[17] - Basic earnings per share for 2022 were 32.3 HK cents, a 10.2% increase from 2021[17] - Total annual dividend per share for 2022 was 24.5 HK cents, an 8.9% increase from the previous year[17] - Group profit increased by 10.6% year-on-year to HKD 1.224 billion, with profit attributable to shareholders rising by 10.7% to HKD 1.191 billion[41] - Total revenue grew by 6.6% to HKD 10.111 billion, with telecom service revenue increasing by 11.7% to HKD 8.831 billion[41][45] - Mobile phone and equipment sales revenue decreased by 19.0% to HKD 1.280 billion due to pandemic-related supply disruptions[45] - Internet business revenue increased by 7.1% to HKD 1.331 billion, driven by higher demand for digital transformation and internet services[48] - International telecom business revenue surged by 40.3% to HKD 992 million, with messaging service revenue growing by 52.4% to HKD 2.558 billion[49] - Enterprise business revenue declined by 3.0% to HKD 3.069 billion due to pandemic-related disruptions in Macau, partially offset by growth in mainland China and Southeast Asia[50] - Fixed-line voice business revenue decreased by 15.2% to HKD 151 million, in line with global trends of declining fixed-line usage[51] - Depreciation and amortization expenses for the year ended December 31, 2022, totaled HKD 914 million, a year-on-year increase of 1.9%, with HKD 7 million related to 5G equipment depreciation following the launch of 5G mobile services in Macau in November 2022[56] - Employee costs increased by 8.0% or HKD 87 million to HKD 1.169 billion, primarily due to higher average wages and an increase in the number of employees[57] - Other operating expenses rose by 10.9% or HKD 53 million to HKD 541 million, mainly due to increased trade receivables and appropriate bad debt provisions[57] - Financial costs remained stable at HKD 269 million, despite a significant rise in overall bank borrowing rates, as the company repaid bank loans during the year[58] - Income tax for the year was HKD 272 million, an increase of HKD 24 million compared to the previous year, with an effective tax rate of 15.5% for 2022[59] - Basic and diluted earnings per share grew by 10.2% and 10.6% respectively to 32.3 HK cents, with a total dividend per share of 24.5 HK cents, an 8.9% increase year-on-year[60] - Cash generated from operations was HKD 2.723 billion, a 13.7% increase from the previous year, while net cash outflow for the year was HKD 141 million[61][62] - Total capital expenditure for the year was HKD 325 million, including HKD 51 million invested in 5G and HKD 15 million in data center development[63] - Unfulfilled capital commitments as of December 31, 2022, amounted to HKD 116 million, primarily for 5G development, data center expansion, and network upgrades[64] - Net debt decreased to HKD 2.534 billion, with the net capital gearing ratio dropping from 27% in 2021 to 20% in 2022[67][69] - Total committed and non-committed financing amounts to HKD 5,470 million, with HKD 4,547 million drawn and HKD 923 million undrawn[72] - The company issued USD 450 million (approximately HKD 3,510 million) in 6.1% guaranteed bonds due March 5, 2025[76] - The company's cash and deposits totaled HKD 1,986 million, with 99.8% held in institutions with strong credit ratings[82] - Fixed-rate borrowings accounted for 78.7% of total borrowings (excluding interest payable) as of December 31, 2022[77] - The actual interest rate for total borrowings was 6.0% in 2022, up from 4.4% in 2021[78] - The company's top five customers accounted for 5.0% of trade receivables and contract assets as of December 31, 2022, down from 16.3% in 2021[81] - The company provided guarantees totaling HKD 436 million for subsidiaries' financing facilities as of December 31, 2022[76] - The company's liquidity risk management includes maintaining sufficient cash reserves and committed credit facilities to meet short-term and long-term liquidity needs[73] - The company has no significant contingent liabilities as of December 31, 2022[75] - The company's foreign currency risk is mitigated by the peg between HKD and USD, and between MOP and HKD[80] - The company's operations and financial performance are significantly impacted by the economic conditions in Hong Kong, Macau, and Mainland China, with potential negative effects from reduced international tourism and roaming service demand[83] - The company faces operational risks due to potential system failures, data processing errors, and rapid technological changes in the telecommunications industry, which could lead to reputational damage and financial losses[84] - Security or privacy breaches could result in significant financial penalties, reputational damage, and reduced service usage, with potential impacts from regulations like GDPR and PIPL[85] - Increased competition in the telecommunications market, particularly from new entrants and technological advancements, could lead to price reductions, margin compression, and market share loss[86] - The company is exposed to legal and regulatory risks across different jurisdictions, which could impact its financial performance and operational efficiency[87] - Adoption of new accounting standards by the Hong Kong Institute of Certified Public Accountants could have significant effects on the company's financial statements and operational results[88] - Rising protectionism and unilateralism could lead to increased regulatory challenges and risks for the company's business development and revenue growth[89] - The company's data centers and infrastructure are critical for service provision, and any damage or destruction could lead to significant repair costs and operational disruptions, potentially harming revenue and business prospects[90] - The COVID-19 pandemic has posed challenges to the company's operations in the Asia-Pacific region, potentially leading to reduced service usage by customers[90] - Total revenue for 2022 was HKD 10,111 million, showing an increase from HKD 9,486 million in 2021[92] - Net profit attributable to the company's shareholders in 2022 was HKD 1,191 million, up from HKD 1,076 million in 2021[92] - Basic earnings per share (EPS) for 2022 were 32.3 HK cents, compared to 29.3 HK cents in 2021[92] - Total dividends per share for 2022 were 24.5 HK cents, an increase from 22.5 HK cents in 2021[92] - The company's net borrowing decreased to HKD 2,534 million in 2022 from HKD 3,653 million in 2021[91] - The company's total equity increased to HKD 10,471 million in 2022 from HKD 10,176 million in 2021[91] - The company declared an interim dividend of 6.0 HK cents per share for the year ended December 31, 2022, an increase from 5.5 HK cents in 2021[164] - The company proposed a final dividend of 18.5 HK cents per share for the year ended December 31, 2022, up from 17.0 HK cents in 2021, subject to shareholder approval at the Annual General Meeting on May 24, 2023[164] 5G and Broadband Development - 5G users exceeded 150,000 as of March 15, 2023, with 10,000 users on the first day of commercial launch and 50,000 within the first month[17] - Macau's broadband download speed ranked first globally at 262.74Mbps in 2022, up from 7th place in 2021[17] - Macau Telecom's mobile market share reached 45.7% by the end of 2022, with over 554,000 subscribers, including 62,000 5G users[25] - Macau Telecom's broadband market share stood at 97.1%, with residential fiber broadband penetration reaching 99.1%[28] - Macau's average broadband download speed ranked first globally at 262.74 Mbps[28] - Macau Telecom expanded 5G international roaming coverage to 78 countries and regions, partnering with 80 overseas network operators[25] - Macau Telecom, under the leadership of Mr. Pan Fuxi, obtained the first 5G license in Macau and launched 5G services within a week in 2022[161] - Mr. Pan Fuxi has been instrumental in driving the "Digital Macau" initiative, extending Macau Telecom's services to the Greater Bay Area and Hengqin Deep Cooperation Zone[161] Research and Development - R&D team expanded to 334 members by the end of 2022, a 17% year-on-year increase[18] - Obtained 1 invention patent, filed 8 new patent applications, and submitted 3 software copyright applications in 2022[18] - Successfully acquired ISP business license in Indonesia and registered "Pacific Internet" trademark in Vietnam[18] - Secured new ICT infrastructure construction contracts in Malaysia, with project delivery progress exceeding 50%[18] Corporate Social Responsibility and Pandemic Response - The company provided over 120 million free pandemic-related messages to Macau citizens and over 140 million to Hong Kong citizens during the pandemic[19] - The company donated approximately HKD 1,000,000 to charity during the year, consistent with the previous year's donation[166] Strategic Initiatives and Market Expansion - The company aims to enhance its ICT-MiiND strategy, focusing on AI and big data application development to strengthen competitiveness[21] - The company plans to expand into new markets, particularly Southeast Asia, leveraging opportunities in the Greater Bay Area and the Belt and Road Initiative[23] - The company is committed to building an international "three first-class" talent team, including management, business, and engineering R&D teams[22] - The company will continue to optimize its 5G network resources and industry applications to support Macau's smart city development[20] - The company emphasizes investor relations, ensuring stable dividends and maintaining investor confidence through transparent communication[19] - The company has strengthened its information security services and improved customer service quality, maintaining high customer satisfaction levels[19] - The company participated in the 2022 World Internet Conference and co-hosted the Cross-Strait and Hong Kong-Macau Internet Development Sub-Forum[19] - The company is focusing on transforming patent achievements into products and solutions to enhance its market position[21] - The company is actively exploring development opportunities in the Guangdong-Macau In-Depth Cooperation Zone in Hengqin[20] Cloud and Network Services - CPC's cloud and network security services achieved double-digit growth in 2022[38] - CPC's TrueCONNECT™ virtual private network service now covers over 160 countries and regions[36] - CPC launched 11 cloud computing solutions, supported by 21 cloud service centers and 2 security operation centers worldwide[38] - CPC's SmartCLOUD™ container service expanded to mainland China, Hong Kong, Singapore, and Europe[35] - CPC established 60 SD-WAN gateways globally, with 43 in Greater China and 7 in ASEAN countries[36] Corporate Governance and Board Structure - The company has strengthened its risk monitoring and management mechanisms, including risk identification, assessment, and control measures[90] - The company is committed to maintaining high standards of corporate governance and has appointed a new independent non-executive director to comply with regulatory requirements[94] - The Board of Directors consists of 2 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring independence and objectivity[95] - 89% of directors do not hold board positions in other listed companies outside the CITIC Group, allowing them to dedicate sufficient time to the company[97] - The attendance rate for board and committee meetings in 2022 was high, with most directors attending all meetings[99] - The Board of Directors is responsible for approving business strategies, policies, and plans, while daily operations are delegated to management[101] - The Board is composed of 3 executive directors and 6 non-executive directors, with 3 being independent as per listing rules[102] - The company aims to appoint at least one female director by December 31, 2024, to promote gender diversity at the board level[102] - Independent non-executive directors make up more than one-third of the Board, ensuring a balanced governance structure[104] - The company has received confirmation from independent non-executive directors regarding their independence as per listing rules[104] - Directors are required to retire and be re-elected every three years, ensuring regular renewal and accountability[104] - The company has a diverse board with expertise in telecommunications, engineering, accounting, economics, and management, supporting effective governance[102] - Independent non-executive director Mr. Lam Yiu Kin is eligible and willing to be re-elected at the upcoming annual general meeting, with the nomination committee and board confirming his ability to dedicate sufficient time to his duties[105] - The board is responsible for setting the company's overall strategy, monitoring performance, and overseeing risk and internal controls[106] - The board held five meetings in 2022, reviewing key matters including financial statements, dividend proposals, and ESG-related issues[108] - Mr. Xin Yuejiang serves as the chairman, responsible for leading the board and ensuring good corporate governance practices, while Mr. Cai Dawei serves as the CEO, overseeing daily management and strategy implementation[109] - The company is seeking a suitable candidate for the CEO position following Mr. Cai Dawei's resignation effective March 31, 2023[110] - Directors receive monthly updates on the group's performance, status, and prospects, and are encouraged to participate in continuous professional development[111] - All directors participated in continuous professional development programs in 2022, including attending seminars, reading updates on regulatory developments, and reviewing monthly performance updates[112] - The company's Board of Directors has established various committees, including the Remuneration Committee, Audit Committee, Nomination Committee, and Finance Committee, each with specific roles and responsibilities[113] - The Remuneration Committee reviewed and approved the remuneration for newly appointed executive directors and revised the remuneration policy for senior management and general employees[115][116] - The total remuneration paid to senior management (excluding directors) in 2022 ranged from HKD 0 to HKD 15,000,000, with one executive in each of the following brackets: HKD 0-3,000,000, HKD 3,000,001-6,000,000, and HKD 12,000,001-15,000,000[118] - The Audit Committee oversees the company's financial reporting, risk management, and internal control systems, including the internal audit function and whistleblowing arrangements[120] - The Audit Committee held two meetings in 2022, with the CFO, external auditors, and internal auditors attending to discuss key audit matters and related procedures[120] -