香港通讯国际控股(00248) - 2024 - 年度业绩

Financial Performance Overview This section provides an overview of the Group's financial performance, highlighting revenue growth and the expansion of its annual loss Consolidated Statement of Comprehensive Income The Group's consolidated statement of comprehensive income for the year ended March 31, 2024, shows a 4% year-on-year revenue increase to HK$176,302 thousand, but the annual loss expanded to HK$21,968 thousand, primarily due to fair value loss on investment properties and increased finance costs. Basic and diluted loss per share was 1.76 HK cents Key Data from Consolidated Statement of Comprehensive Income | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 176,302 | 169,524 | 6,778 | 4.0% | | Cost of sales | (130,929) | (140,883) | 9,954 | -7.1% | | Gross profit | 45,373 | 28,641 | 16,732 | 58.4% | | Fair value loss on investment properties | (18,090) | (9,621) | (8,469) | 88.0% | | Finance costs | (9,690) | (4,864) | (4,826) | 99.2% | | Loss before tax | (21,992) | (19,568) | (2,424) | 12.4% | | Loss for the year attributable to owners of the Company | (21,968) | (19,568) | (2,400) | 12.3% | | Loss per share - basic and diluted (HK cents) | (1.76) | (1.57) | (0.19) | 12.1% | Financial Position Overview This section presents an overview of the Group's financial position, detailing changes in assets, liabilities, and key financial ratios Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets slightly decreased, with non-current assets declining while current assets increased. Current liabilities saw a minor rise, leading to a significant improvement in net current assets, but net assets and total equity decreased Key Data from Consolidated Statement of Financial Position | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | | | | | | Investment properties | 165,200 | 193,000 | (27,800) | -14.4% | | Financial assets at fair value through other comprehensive income | – | 9,854 | (9,854) | -100.0% | | Current assets | | | | | | Contract assets | 119,553 | 78,344 | 41,209 | 52.6% | | Cash and bank balances | 22,699 | 35,463 | (12,764) | -36.0% | | Current liabilities | | | | | | Bank borrowings | 159,031 | 140,478 | 18,553 | 13.2% | | Key Ratios | | | | | | Net current assets | 18,168 | 953 | 17,215 | 1806.4% | | Net assets | 242,361 | 263,328 | (20,967) | -8.0% | Notes to Financial Statements This section provides detailed explanations and disclosures regarding the Group's accounting policies, financial performance, and position Basis of Preparation The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, complying with the Listing Rules. The statements are prepared under the historical cost convention, with certain financial instruments and investment properties measured at fair value, presented in HK dollars - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, complying with the Listing Rules[8] - The statements are prepared under the historical cost convention, with certain financial instruments and investment properties measured at fair value, and all values are presented in HK dollars and rounded to the nearest thousand[8] Accounting Standards and Policy Changes Several new and revised Hong Kong Financial Reporting Standards were first applied this year, but they had no significant impact on the Group's financial performance and position. New guidelines from the HKSAR Government on abolishing the MPF offsetting mechanism against long service payments also had no material effect on the Group - Several new and revised Hong Kong Financial Reporting Standards were first applied this year, including amendments to HKFRS 17, HKAS 1, HKAS 8, and HKAS 12[9] - The application of new and revised standards had no significant impact on the Group's financial performance and position for the current and prior periods[9] - New guidelines from the HKSAR Government on abolishing the MPF offsetting mechanism against long service payments (effective May 1, 2025) are not expected to have a significant impact on the Group's results and financial position for the current or prior periods[10][13] Segment Information The Group's operating segments include the sale of mobile phones in Hong Kong, sale of IoT solutions in Hong Kong, sale of IoT solutions in Mainland China and Southeast Asia, and property investment. In FY2024, IoT solutions segment revenue grew significantly, while mobile phone sales and property investment revenue decreased - The Group's reportable segments include: sale of mobile phones in Hong Kong, sale of IoT solutions in Hong Kong, sale of IoT solutions in Mainland China and other Southeast Asian countries, and property investment[17] FY2024 Segment Results In FY2024, revenue from the sale of IoT solutions in Hong Kong reached HK$142,859 thousand, contributing HK$1,039 thousand in profit; while revenue from the sale of mobile phones in Hong Kong significantly decreased to HK$29,047 thousand, recording a loss of HK$5,670 thousand FY2024 Segment Revenue and Results | Segment | External Revenue (HK$ thousand) | Segment (Loss) Profit (HK$ thousand) | | :--- | :--- | :--- | | Sale of mobile phones in Hong Kong | 29,047 | (5,670) | | Sale of IoT solutions in Hong Kong | 142,859 | 1,039 | | Sale of IoT solutions in Mainland China and other Southeast Asian countries | 3,168 | 3,688 | | Property investment | 1,228 | (2,627) | | Total | 176,302 | (3,570) | - In FY2024, the sale of IoT solutions in Hong Kong segment recorded HK$142,859 thousand in external revenue and achieved a profit of HK$1,039 thousand[19] - The sale of IoT solutions in Mainland China and other Southeast Asian countries segment recorded HK$3,168 thousand in external revenue and achieved a profit of HK$3,688 thousand[19] FY2023 Segment Results In FY2023, the sale of mobile phones in Hong Kong was the primary revenue source, reaching HK$74,962 thousand, but the sale of IoT solutions in Mainland China and Southeast Asia recorded a loss of HK$8,930 thousand FY2023 Segment Revenue and Results | Segment | External Revenue (HK$ thousand) | Segment (Loss) Profit (HK$ thousand) | | :--- | :--- | :--- | | Sale of mobile phones in Hong Kong | 74,962 | (3,325) | | Sale of IoT solutions in Hong Kong | 82,617 | 2,193 | | Sale of IoT solutions in Mainland China and other Southeast Asian countries | 10,079 | (8,930) | | Property investment | 1,866 | (39) | | Total | 169,524 | (10,101) | - In FY2023, the sale of mobile phones in Hong Kong segment recorded HK$74,962 thousand in external revenue, while the sale of IoT solutions in Mainland China and other Southeast Asian countries segment recorded HK$10,079 thousand in external revenue but incurred a loss of HK$8,930 thousand[21] Geographical Revenue and Assets Hong Kong is the Group's primary revenue source, contributing HK$173,023 thousand in external customer revenue in FY2024, and also the main location for non-current assets. Revenue and non-current assets in Mainland China and Singapore both decreased Geographical Revenue and Non-current Assets | Region | 2024 External Customer Revenue (HK$ thousand) | 2023 External Customer Revenue (HK$ thousand) | 2024 Non-current Assets (HK$ thousand) | 2023 Non-current Assets (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 173,023 | 159,007 | 214,191 | 231,196 | | Mainland China | 581 | 6,463 | 199 | 257 | | Singapore | 2,698 | 4,054 | 500 | 11,973 | | Total | 176,302 | 169,524 | 214,890 | 243,426 | - Hong Kong is the Group's primary revenue source, with external customer revenue from Hong Kong totaling HK$173,023 thousand in FY2024, accounting for the vast majority of total revenue[24] Segment Reconciliation In FY2024, the total reported segment loss was HK$3,570 thousand, and after adjusting for fair value loss on investment properties and changes in fair value of financial assets, the consolidated loss before tax was HK$21,992 thousand Reconciliation of Reported Segment Profit/Loss Before Tax | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total reported segment loss | (3,570) | (10,101) | | Fair value loss on investment properties | (18,090) | (9,621) | | Fair value (loss) gain on financial assets at fair value through profit or loss | (332) | 154 | | Consolidated loss before tax | (21,992) | (19,568) | - In FY2024, the total reported segment assets were HK$405,345 thousand, and with unallocated corporate assets of HK$9,840 thousand, the consolidated total assets amounted to HK$415,185 thousand[25] Other Income and Major Customers In FY2024, the Group's total other income, gains, and losses amounted to HK$1,818 thousand, a significant decrease from the prior year, mainly due to reduced government grants. Customer A was a major customer, contributing HK$106,442 thousand in revenue Other Income, Gains and Losses | Other Income, Gains and Losses | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | 491 | 270 | 221 | 81.9% | | Dividend income | 1,378 | 1,378 | 0 | 0.0% | | Government grants | 31 | 1,756 | (1,725) | -98.2% | | Total | 1,818 | 3,423 | (1,605) | -46.9% | - In FY2024, revenue from Customer A was HK$106,442 thousand, accounting for over 10% of the Group's total revenue, primarily from the sale of IoT solutions in Hong Kong segment[26] - Government grants significantly decreased from HK$1,756 thousand in 2023 to HK$31 thousand in 2024, primarily because 2023 included subsidies from the HKSAR Government's "Employment Support Scheme"[26] Finance Costs and Loss Before Tax Analysis In FY2024, finance costs doubled year-on-year to HK$9,690 thousand, primarily due to increased interest on bank borrowings. Loss before tax was net of several expenses, including significantly increased employee benefit expenses and impairment losses on trade receivables and contract assets Finance Costs | Finance Costs | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 9,373 | 4,651 | 4,722 | 101.5% | | Total finance costs | 9,690 | 4,864 | 4,826 | 99.2% | Items Deducted From (Credited To) Loss Before Tax | Items Deducted From (Credited To) Loss Before Tax | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total staff costs | 22,758 | 21,406 | 1,352 | 6.3% | | Impairment loss on trade receivables | 440 | 68 | 372 | 547.1% | | Impairment loss on contract assets | 1,952 | 383 | 1,569 | 409.7% | | Write-down of inventories | 18 | 297 | (279) | -94.0% | Taxation The Group did not generate assessable profits in Hong Kong, Mainland China, Singapore, or Thailand, thus no provision for profits tax was made in FY2024 and FY2023, with only HK$24 thousand in tax recognized - As the Group did not generate assessable profits in Hong Kong, Mainland China, Singapore, or Thailand, no provision for profits tax was made for FY2024 and FY2023[29] - Hong Kong profits tax operates under a two-tiered system, with the first HK$2,000,000 of assessable profits for qualifying entities taxed at 8.25% and the remainder at 16.5%. Corporate income tax rates are 25% in Mainland China, 17% in Singapore, and 20% in Thailand[29] Loss Per Share Basic and diluted loss per share for FY2024 was 1.76 HK cents, an increase from 1.57 HK cents in FY2023. Due to the net loss incurred, unexercised share options had an anti-dilutive effect and were not included in the diluted loss per share calculation Loss Per Share | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (21,968) | (19,568) | | Loss per share - basic and diluted (HK cents) | (1.76) | (1.57) | - As the Group incurred a net loss, unexercised share options had an anti-dilutive effect and were therefore not included in the calculation of diluted loss per share[31] Dividend Policy For the year ended March 31, 2024, and subsequent to the reporting period, the Company neither paid nor proposed any dividends - For the year ended March 31, 2024, and subsequent to the reporting period, the Company neither paid nor proposed any dividends[32] Contract Assets and Trade Receivables In FY2024, contract assets significantly increased to HK$119,553 thousand, primarily from smart system construction services, with a corresponding increase in loss provisions. Gross trade receivables rose to HK$25,056 thousand, but loss provisions decreased Contract Assets | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Contract assets | 121,735 | 79,083 | 42,652 | 53.9% | | Less: provision for loss | (2,182) | (739) | (1,443) | 195.3% | | Net contract assets | 119,553 | 78,344 | 41,209 | 52.6% | Trade Receivables | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross trade receivables | 25,056 | 22,196 | 2,860 | 12.9% | | Less: provision for loss | (1,260) | (2,921) | 1,661 | -56.9% | | Net trade receivables | 23,796 | 19,275 | 4,521 | 23.5% | Ageing Analysis of Trade Receivables | Ageing of Trade Receivables | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 19,085 | 11,497 | | 31 to 60 days | 670 | 4,857 | | 61 to 90 days | 2,560 | 435 | | 91 to 180 days | 1,057 | 1,024 | | 181 to 365 days | 400 | 525 | | Over 365 days | 1,284 | 3,858 | | Total | 25,056 | 22,196 | Trade Payables and Accruals In FY2024, total trade payables and accruals amounted to HK$7,641 thousand, a decrease from the prior year. The average credit period for trade payables is 30 to 60 days, and the Group has established risk management policies to ensure timely settlement Trade Payables, Accruals and Other Payables | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 2,160 | 4,164 | (2,004) | -48.1% | | Accruals and deposits received | 5,481 | 7,237 | (1,756) | -24.3% | | Total | 7,641 | 11,401 | (3,760) | -33.0% | Ageing Analysis of Trade Payables | Ageing of Trade Payables | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 943 | 3,360 | | 31 to 60 days | 187 | 3 | | 61 to 90 days | 155 | 32 | | Over 90 days | 875 | 769 | | Total | 2,160 | 4,164 | - The average credit period for product purchases is 30 to 60 days, and the Group has established financial risk management policies to ensure all payables are settled within the credit terms[39] Management Discussion and Analysis This section provides management's perspective on the Group's consolidated performance, business segment results, future prospects, and financial resources Consolidated Performance Overview For the year ended March 31, 2024, the Group's turnover increased by 4% to HK$176,000 thousand, but the loss attributable to owners of the Company expanded to HK$22,000 thousand - Turnover for FY2024 increased by 4% to HK$176,000 thousand (2023: HK$170,000 thousand)[41] - Loss attributable to owners of the Company expanded from HK$20,000 thousand in 2023 to HK$22,000 thousand in 2024[41] Business Segment Performance In FY2024, mobile phone sales significantly decreased due to weak demand, resulting in a loss. IoT solutions sales grew substantially and turned profitable. Property investment rental income decreased, and losses expanded - Mobile phone sales turnover decreased from HK$75,000 thousand to HK$29,000 thousand, with segment loss expanding from HK$3,000 thousand to HK$6,000 thousand[42] - IoT solutions sales turnover increased from HK$93,000 thousand to HK$146,000 thousand, with the segment turning from a loss of HK$7,000 thousand to a profit of HK$5,000 thousand[43] - Property investment rental income decreased from HK$1,900 thousand to HK$1,200 thousand, with segment loss expanding from HK$100 thousand to HK$3,000 thousand[44] Business Prospects Mobile phone sales are expected to remain weak, while IoT solutions sales are projected to be stable with the development of innovative products. Property investment rental income will depend on the successful leasing of vacant properties - Mobile phone business sales are expected to remain weak in the coming year due to declining demand[45] - The IoT solutions segment will develop novel and innovative products to meet market demand, with sales expected to remain stable[45] - Weak demand in the property investment segment's leasing market affects occupancy rates, and next year's rental income depends on the successful leasing of vacant properties[45] Liquidity and Financial Resources As of March 31, 2024, the Group's cash and bank balances decreased, while bank borrowings increased. The gearing ratio rose to 66%. The Board believes the Group has sufficient liquidity to meet operational needs Liquidity Position | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and bank balances | 25,000 | 38,000 | (13,000) | -34.2% | | Bank borrowings | 159,000 | 140,000 | 19,000 | 13.6% | - The gearing ratio (total borrowings as a percentage of shareholders' equity) increased from 53% in 2023 to 66% in 2024[48] - The Board believes the Group has sufficient cash balances and bank credit facilities to meet its commitments and working capital needs, and has secured additional bank loans to finance new projects within the next two years[46] Capital Structure There were no changes in the Group's capital structure for the year ended March 31, 2024 - There were no changes in the Group's capital structure for the year ended March 31, 2024[49] Capital Expenditure During the year, the Group's capital expenditure on property, plant, and equipment amounted to HK$1,300 thousand - The Group's expenditure on property, plant, and equipment during the year amounted to HK$1,300 thousand[50] Employee Information As of March 31, 2024, the Group employed 100 staff, with total employee remuneration of HK$18,000 thousand. The Company maintains good employee relations, and remuneration is determined by individual merit and performance Employee Data | Indicator | 2024 | 2023 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total staff | 100 | 99 | 1 | 1.0% | | Total employee remuneration (HK$ thousand) | 18,000 | 17,000 | 1,000 | 5.9% | - Employee remuneration and bonuses are determined based on each employee's individual merit and performance, and are reviewed at least annually[51] Pledge of Assets As of March 31, 2024, the Group's bank credit facilities were secured by leasehold land and buildings, investment properties, bank deposits, and financial assets at fair value through profit or loss - As of March 31, 2024, the Group's general bank credit facilities were secured by leasehold land and buildings with a total carrying amount of HK$47,783 thousand, investment properties with a total fair value of HK$165,200 thousand, bank deposits of HK$2,765 thousand, and financial assets at fair value through profit or loss with a total fair value of HK$9,206 thousand[52] Foreign Exchange Risk Management The Group's assets and liabilities are primarily denominated in HK dollars, RMB, and Singapore dollars, and it is not exposed to significant foreign currency exchange rate fluctuation risks. The Group does not engage in foreign currency hedging or financial derivative instruments - The Group's assets and liabilities are primarily denominated in HK dollars, RMB, and Singapore dollars, with income and expenses from operations in China and Singapore primarily denominated in RMB and Singapore dollars, respectively[53] - The Group is not exposed to significant risks from foreign currency exchange rate fluctuations, has not made hedging arrangements for foreign currencies, and is not involved in financial derivative instruments[53] Contingent Liabilities As of March 31, 2024, the Company provided a corporate guarantee of HK$138,000 thousand for general bank credit facilities granted to its subsidiaries - As of March 31, 2024, the Company provided a corporate guarantee of HK$138,000 thousand (2023: HK$118,000 thousand) as security for general bank credit facilities granted to its subsidiaries[54] Other Important Information This section covers various corporate governance matters, auditor's review, and administrative details related to the Company's operations Share Transfer Registration The Company will suspend share transfer registration from August 21 to August 23, 2024, to determine shareholders' eligibility to attend and vote at the Annual General Meeting - The Company will suspend share transfer registration from Wednesday, August 21, 2024, to Friday, August 23, 2024[56] - To be eligible to attend and vote at the upcoming Annual General Meeting, all transfer documents, together with the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar by 4:30 p.m. on Tuesday, August 20, 2024[56] Corporate Governance The Company complied with the Corporate Governance Code in Appendix 14 of the Listing Rules in FY2024, with exceptions for the roles of Chairman and CEO being held by the same person, and some Independent Non-executive Directors' absence from the AGM - The Company complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules for the year ended March 31, 2024, with two exceptions[57] - The roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Chan Chung Ngai), which the Board believes provides strong and consistent leadership to the Group[57] - Two Independent Non-executive Directors (Mr. Chiu Nga Ying and Dr. Chu Chor Lik) were unable to attend the Annual General Meeting held on August 25, 2023, due to other commitments[57] Auditor's Review The Group's auditor, Shinewing (HK) CPA Limited, has reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements, but this work does not constitute an assurance engagement, thus no assurance opinion is expressed - The auditor, Shinewing (HK) CPA Limited, has reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements[58] - The related work performed by the auditor does not constitute an assurance engagement as defined by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance opinion is expressed on the preliminary announcement[58] Model Code for Securities Transactions by Directors The Company has adopted the Model Code set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance during FY2024 - The Company has adopted the Model Code set out in Appendix 10 of the Listing Rules as its own code of conduct for directors' securities transactions[60] - Each Director confirmed compliance with the required standards set out in the Model Code for the year ended March 31, 2024[60] Audit Committee The Audit Committee reviewed the interim and annual financial statements during the year and discussed the audit plan, accounting policies, and internal control systems with management and external auditors - The Audit Committee reviewed the unaudited condensed interim financial statements for the six months ended September 30, 2023, and the audited consolidated financial statements for the year ended March 31, 2024[61] - The Audit Committee discussed the audit plan, accounting policies and practices, and financial reporting matters with management and external auditors, and reviewed the Group's internal control systems[61] Listed Securities Transactions During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[62] Acknowledgement The Board expresses its sincere gratitude to shareholders, business partners, and all management and staff for their contributions and support during the year - The Board extends its sincere gratitude to the Company's shareholders, business partners, and all management and staff of the Group for their contributions and continuous support during the year[63] Annual General Meeting and Annual Report The Company's Annual General Meeting is scheduled for August 23, 2024, and the annual report and notice of meeting will be published on the Company's and HKEX websites and dispatched to shareholders in due course - The Company's Annual General Meeting is scheduled to be held on Friday, August 23, 2024[64] - The annual report for the year ended March 31, 2024, and the notice of the Annual General Meeting will be published on the websites of the Company and Hong Kong Exchanges and Clearing Limited, and dispatched to the Company's shareholders in due course[64] Board of Directors As of the announcement date, the Board of Directors comprises six Executive Directors (including Mr. Chan Chung Ngai as Chairman) and four Independent Non-executive Directors - As of the announcement date, the Board of Directors includes Executive Directors Mr. Chan Chung Ngai (Chairman), Mr. Chan Chung Yin, Mr. Chan Ming Him, Mr. Wu Kwok Lam, Mr. Yip Man Hon, and Mr. Lam Man Hau[65] - Independent Non-executive Directors include Mr. Chiu Nga Ying, Dr. Chu Chor Lik, Dr. Law Ka Keung, and Mr. Wong Kwok Leung[65]