Financial Performance - The group's revenue for the year ended March 31, 2024, was approximately HKD 1,372.77 million, a decrease of about 10.6% compared to HKD 1,535.45 million in 2023[30] - For the fiscal year ending March 31, 2024, total revenue was approximately HKD 1,372.77 million, a decrease of about 10.6% from HKD 1,535.45 million in 2023[50] - The net profit for the same period was approximately HKD 56.38 million, down from HKD 75.58 million in 2023, reflecting a decline of 25.4%[69] - Profit attributable to owners of the company was approximately HKD 56.38 million, a decrease of about 25.4% from HKD 75.58 million in 2023[55] - Revenue from the operations services segment declined by approximately 5.81% to about HKD 306.30 million due to intensified competition in the Hong Kong telecommunications market[20] - Product business revenue accounted for 74.6% of total revenue, amounting to HKD 1,023.36 million, down from 76.2% or HKD 1,169.36 million in the previous year[50] - Share of profits from associates decreased by approximately 18.7% to HKD 9.21 million, attributed to a decline in revenue from New Mobile Communications[53] - Other income and gains rose significantly by approximately 150.5% to HKD 43.39 million, driven by property sales gains of HKD 38.10 million[52] - Rental income from investment properties increased by approximately 47.4% to HKD 21.98 million, primarily due to rental income from a building acquired in May 2022[51] Operational Efficiency and Strategy - The group aims to refine its business model and enhance performance while actively seeking potential opportunities for business diversification[22] - The company plans to enhance operational efficiency and leverage its strong retail network of 73 stores to meet changing consumer demands[48] - The company aims to continue its digital transformation and innovation in 5G infrastructure and artificial intelligence[48] - The company operated 73 retail stores as of March 31, 2024, a reduction from 77 stores in 2023, contributing to decreased rental expenses[72] Environmental, Social, and Governance (ESG) Initiatives - The group has established environmental goals and will regularly review progress to continuously improve its environmental performance[4] - The group recognizes the increasing frequency of extreme weather events and is committed to reducing greenhouse gas emissions to address climate change[34] - The board is responsible for overseeing the management of environmental, social, and governance (ESG) strategies and ensuring compliance with relevant regulations and trends[3] - The company emphasizes the importance of environmental sustainability in its operations and strictly adheres to environmental laws and regulations, including the Environmental Protection Law of China and the Air Pollution Prevention and Control Law[83] - The company is committed to reducing greenhouse gas emissions intensity and ensuring that newly procured electronic office equipment meets the highest energy efficiency standards[90] - The company aims to optimize resource efficiency and recycle renewable resources wherever possible to avoid waste[90] - The company has engaged an independent third-party environmental, social, and governance (ESG) consultant to identify key ESG issues and provide recommendations on performance[112] - The environmental, social, and governance report includes quantitative key performance indicators related to the company's activities in Hong Kong and China[196] - The content of the environmental, social, and governance report is based on stakeholder engagement and materiality assessments[197] Financial Management and Governance - The financing costs have significantly increased since Q2 2022 due to bank borrowings primarily used for acquiring a building at a cost of approximately HKD 735.44 million[33] - Interest expenses on bank and other borrowings amounted to approximately HKD 39.34 million, an increase from HKD 23.06 million in 2023[73] - The company maintained a net current liability of approximately HKD 503.39 million, down from HKD 620.08 million in 2023[79] - Cash and cash equivalents were approximately HKD 27.33 million, a slight decrease from HKD 30.37 million in 2023[79] - The company has established several policies to enhance its internal control system, including anti-corruption and whistleblowing policies[185] - The board of directors is responsible for ensuring the effectiveness of the internal control system, which has been reviewed and deemed effective during the reporting period[183] - The company has confirmed compliance with the standard code of conduct for securities trading throughout the reporting period[129] - The independent auditor's fees for audit and non-audit services during the reporting period amounted to approximately HKD 1,000,000 and HKD 229,600 respectively[181] Stakeholder Engagement and Employee Relations - The management team expresses gratitude to stakeholders for their support and commits to ensuring the group's sustainable development for reasonable returns to shareholders[43] - The company aims to enhance stakeholder engagement to gather constructive feedback and improve governance practices[78] - The company values its employees as its most valuable asset and complies with labor laws, providing training and career opportunities[106] - The company has committed significant resources to meet employee needs and protect their rights and interests[108] - The company emphasizes a non-discrimination policy in all employment activities, ensuring equal opportunities for all employees[108] - The employee composition includes 299 males (54%) and 255 females (46%), reflecting the company's commitment to gender diversity[137] - The company is committed to regular reviews of gender equality and implementing corrective measures to improve gender balance[137] Board Structure and Committees - The board consists of nine directors, three of whom are independent non-executive directors, ensuring compliance with governance regulations[100] - The company has established three board committees (audit, remuneration, and nomination) to oversee specific aspects of group affairs[131] - The audit committee includes three independent non-executive directors, with a focus on maintaining financial integrity[132] - The nomination committee has established criteria for selecting and nominating directors, ensuring a balanced skill set and diverse perspectives[136] - The company has a continuous professional development program for its directors to enhance their skills and knowledge[127] - The chairman and CEO roles are separated to ensure a clear distinction of responsibilities[126] - The board regularly reviews stakeholder communication channels to ensure effective communication and monitoring of the annual ESG report[112] - The board consists of a mix of executive and independent non-executive directors, ensuring a balance of power and oversight[121] - The audit committee's responsibilities include reviewing financial statements and overseeing the risk management and internal control systems[147] Compliance and Reporting - The company emphasizes timely and accurate disclosure of inside information to the public[159] - The company has a shareholder communication policy to ensure equal and timely access to information for shareholders[161] - The company encourages shareholders to attend the annual general meeting and submit inquiries in advance[162] - The company reviewed its shareholder communication policy and found it effective during the year[163] - The company has revised its articles of association to align with the core shareholder protection levels effective from January 1, 2022[193]
电讯数码控股(06033) - 2024 - 年度财报