Financial Performance - The company reported a decline in revenue due to intense competition from internet video and application services, particularly affecting the television segment's advertising and subscription income [8]. - The company's revenue for the year ended December 31, 2018, decreased by approximately HKD 95 million or 8% to about HKD 1,163 million, compared to HKD 1,258 million in 2017 [122]. - Operating expenses for the same period decreased by approximately HKD 50 million to about HKD 1,652 million, down from HKD 1,702 million in 2017 [122]. - The company reported an operating loss of approximately HKD 489 million for the year, an increase of about 10% compared to the operating loss of HKD 444 million in 2017 [122]. - Revenue from the television segment decreased by approximately 10% to about HKD 813 million due to declines in subscriber and advertising revenue [125]. - The EBITDA loss for the television segment was approximately HKD 302 million, compared to a loss of about HKD 270 million in 2017 [125]. - The company recorded a net loss of approximately HKD 456 million for the year, compared to a net loss of HKD 363 million in 2017 [123]. - Basic and diluted loss per share for the year was approximately HKD 0.073, compared to HKD 0.101 in 2017 [123]. - As of December 31, 2018, the group's cash and bank balances were approximately HKD 178 million, a decrease of about 69.7% from HKD 568 million in 2017 [129]. - The group's debt-to-equity ratio increased to approximately 68.4% in 2018 from 43.8% in 2017, indicating a rise in debt levels [129]. - The group's net asset value decreased by approximately 36% to HKD 724 million in 2018 from HKD 1,130 million in 2017 [129]. Subscriber and Market Trends - New subscriber growth was achieved, with a slight increase in broadband service users compared to the previous fiscal year [9]. - In 2018, the total number of television subscribers decreased to 800,000 from 850,000 in 2017, while the number of broadband subscribers increased to 155,000 from 149,000 [21]. - The advertising revenue from pay television declined due to intense competition from OTT services and digital media, impacting overall financial performance [19]. - The company continues to face significant competition in the television industry, with changing viewer habits and the rise of new platforms impacting its operations [31]. - The group reported a decline in advertising and subscriber revenue due to competition from free television, digital platforms, and OTT services [141]. Strategic Initiatives and Partnerships - The company secured a five-year contract with MTR Corporation to supply content and act as the exclusive advertising agent for MTR train carriage television starting January 1, 2019 [9]. - A network development agreement was signed with China Mobile Hong Kong to enhance telecommunications and media value-added services, marking a significant step in future development [12]. - Strategic partnerships were established with Guangdong Provincial Radio and Television Network and Guangdong Radio and Television Station to enhance business development and technology [12]. - The company plans to invest in properties, facilities, and equipment as well as explore market opportunities to enhance profitability [16]. - The company is evaluating partnerships or the sale of loss-making businesses to reduce cash flow losses as part of its strategic review [147]. Content and Service Development - The launch of the Hong Kong International Finance Channel and the rebranding of the Wonderful TV channel are part of the company's strategy to provide new entertainment and information programming [8]. - The company introduced new sports, entertainment, lifestyle, and news channels to its pay television platform to enhance content offerings [28]. - The company has expanded its business to include English news and Mandarin finance channels, launching the Hong Kong International Finance Channel on July 30, 2018 [148]. - The company launched a new free English television channel in July 2018 and rebranded its free television channels to "Hong Kong Open TV" in October 2018 to enhance its market presence [22]. Cost Management and Restructuring - The company is undergoing restructuring to improve financial performance, including cost-saving measures and a revised rights issue proposal to strengthen its capital base [13]. - The company is implementing a cost-saving plan and evaluating potential restructuring of its business portfolio to improve profitability and financial performance [22]. - The company aims to improve its financial performance through cost-saving plans and the introduction of new programs and channels [147]. Corporate Social Responsibility and ESG - The group is committed to corporate social responsibility, implementing various environmental measures and creating a positive work environment for employees [41]. - The group has established an environmental, social, and governance (ESG) working group to oversee ESG strategies and ensure effective risk management [43]. - Key ESG issues identified include service commitment, employee health and safety, supply chain management, and environmental impact management [52]. - The group emphasizes stakeholder engagement to align long-term sustainability goals with current vision and mission [46]. - The group plans to continue developing corporate social responsibility initiatives with the support of employees [52]. Employee and Workplace Safety - The total number of employees decreased from 1,876 in 2017 to 1,714 in 2018, with a notable reduction in male employees from 1,298 to 1,177 [101]. - The employee turnover rate increased from 24.0% in 2017 to 35.4% in 2018, indicating a rise in employee departures [102]. - The company provided over 55 training courses to 2,501 employees in 2018, totaling 76,450 training hours, a significant increase from 42,659 hours in 2017 [103]. - The occupational injury rate decreased from 0.0119 in 2017 to 0.0087 in 2018, indicating improved workplace safety [67]. - The company conducted annual fire drills and regular occupational safety training to enhance employee awareness of workplace safety [65]. Environmental Impact and Sustainability - Total greenhouse gas emissions decreased from 12,341 tons in 2017 to 9,486 tons in 2018, reflecting the company's commitment to reducing its environmental impact [79]. - Nitrogen oxide emissions reduced from 2.2 tons in 2017 to 1.84 tons in 2018, demonstrating progress in air quality management [78]. - The company has over 70% of its suppliers based in Hong Kong, supporting local economy and reducing carbon emissions in the supply chain [71]. - The company reduced paper usage by implementing a paperless office initiative, including electronic leave applications and payslips [82]. - In 2018, the company recycled 35 tons of paper products, a 29.6% increase from 27 tons in 2017 [83]. - Water consumption decreased by 37% from 4,396 cubic meters in 2017 to 2,761 cubic meters in 2018 due to ongoing education and conservation efforts [89]. - The company monitored energy consumption and implemented measures to improve efficiency, resulting in a reduction of electricity usage from 17,994,843 kWh in 2017 to 17,226,533 kWh in 2018 [90]. Governance and Compliance - The company has adhered to all applicable corporate governance codes during the fiscal year ending December 31, 2018, with one noted deviation [156]. - The board consists of ten directors, including one executive director, five non-executive directors, and four independent non-executive directors [160]. - The company has arranged training for directors to ensure they are updated on regulatory changes and their responsibilities [191]. - The Audit Committee consists of three members, including two independent non-executive directors, ensuring compliance with corporate governance standards [198]. - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors, as well as approving their remuneration and terms of engagement [200].
有线宽频(01097) - 2018 - 年度财报