Financial Performance - Revenue decreased by 27.4% to HKD 2,343 million (2023: HKD 3,228 million) [1] - Shareholders' loss amounted to HKD 158 million (2023: profit of HKD 112 million) [1] - Basic and diluted loss per share was HKD 5.73 (2023: profit of HKD 4.04) [2] - The company reported a net loss of HKD 157,282 million for the period [3] - The group reported a pre-tax loss of HKD 555,920,000 for the six months ended June 30, 2024, compared to a profit of HKD 501,492,000 in the same period of 2023 [24] - The group reported a loss attributable to equity holders of HKD 158,433,000, compared to a profit of HKD 112,178,000 in the same period last year [58] Revenue Breakdown - Revenue for the wireless telecommunications network systems and services segment was HKD 2,261,115 thousand, while the operator telecommunications services segment generated HKD 82,340 thousand, totaling HKD 2,343,455 thousand for the six months ended June 30, 2024 [14] - Revenue for the six months ended June 30, 2024, was HKD 2,343,455,000, a decrease of 27.5% compared to HKD 3,228,189,000 for the same period in 2023 [19] - Revenue from domestic customers in China was HKD 1,576,903,000, down 25.8% from HKD 2,125,601,000 in the previous year [15] - Revenue from the Asia-Pacific region (excluding China) was HKD 291,351,000, a decline of 38.7% from HKD 475,562,000 [15] - Revenue from major customers accounted for 18.2%, 12.5%, and 5.4% of total group revenue, compared to 19.3%, 16.3%, and 6.6% in the previous year [17] Cost and Expenses - The cost of goods sold and services provided was HKD 1,665,066,000, down from HKD 2,349,923,000, reflecting a decrease of 29.1% [24] - Total other income and gains decreased to HKD 65,232,000 from HKD 186,821,000, a decline of 65.1% [22] - The group’s employee benefits expenses increased to HKD 555,920,000 from HKD 501,492,000, reflecting a rise of 10.8% [24] - The financing costs for the six months ended June 30, 2024, totaled HKD 13,505,000, a decrease of 55.2% compared to HKD 30,107,000 for the same period in 2023 [26] - The total tax expense for the six months ended June 30, 2024, was HKD 14,610,000, significantly lower than HKD 56,520,000 for the same period in 2023, reflecting a reduction of 74.1% [28] Assets and Liabilities - Non-current assets totalled HKD 2,222,996 million as of June 30, 2024, down from HKD 2,578,197 million [4] - Current assets decreased to HKD 6,507,240 million from HKD 6,830,828 million [4] - Total equity attributable to shareholders decreased to HKD 3,274,258 million from HKD 3,581,530 million [5] - Non-current liabilities increased to HKD 515,441 million from HKD 315,650 million [5] - Total assets amounted to HKD 8,730,236 thousand, with segment assets for wireless telecommunications at HKD 8,139,914 thousand and operator telecommunications at HKD 1,019,573 thousand [14] Operational Highlights - The company is engaged in research, development, manufacturing, and sales of wireless telecommunications network systems and services, as well as providing related engineering services and telecommunications services [1] - The company has maintained its accounting policies consistent with those used in the annual financial statements for the year ended December 31, 2023 [9] - The company has not reported any impact from the adoption of revised Hong Kong Financial Reporting Standards on its financial position or performance [10] Market and Strategic Developments - The company continues to upgrade its 5G network solutions to meet evolving market demands despite global uncertainties [42] - The company has maintained a leading position in the base station antenna market through continuous R&D innovation and patent inventions, enhancing key technologies and product competitiveness [62] - The company has upgraded its new generation 2.0 version of the "Green Antenna Solution" to meet the demand for low-carbon network construction, covering various scenarios including urban and rural areas [63] - The company has introduced a series of indoor distribution coverage products that have gained growth in multiple global regions, helping operators significantly reduce construction costs and system power consumption [65] - The group actively expanded its international market presence, focusing on innovative product development and maintaining stable partnerships with key international mobile operators [70] Employee and Governance - The company employed approximately 4,800 employees as of June 30, 2024, down from 5,100 employees as of December 31, 2023 [83] - The company provided training to employees to enhance their skills and professional knowledge [83] - The company has adopted a competitive compensation plan for its employees in accordance with industry practices and regulations [83] - The audit committee reviewed the accounting standards and practices adopted by the company and found no objections regarding the interim financial statements [88] - The company has complied with all relevant corporate governance codes and standards during the period [86]
京信通信(02342) - 2024 - 中期业绩