Financial Performance - Telecom service revenue increased by 11.3% to HKD 4,025 million compared to HKD 3,615 million in the previous period[31] - The company's profit attributable to shareholders increased by 0.2% to HKD 512 million, up from HKD 511 million[31] - EBITDA decreased by 1.6% to HKD 1,232 million from HKD 1,252 million[31] - For the six months ended June 30, 2020, the company's total revenue was HKD 4.384 billion, a slight increase of 0.2% compared to HKD 4.375 billion in the same period of 2019[52] - The company's net profit attributable to shareholders was HKD 512 million, a marginal increase of HKD 1 million compared to HKD 511 million in the same period of 2019[58] - The total comprehensive income for the period was HKD 500 million, down from HKD 507 million in the previous year, indicating a decrease of about 1.38%[109] - The net profit for the period was HKD 519 million, unchanged from the same period in 2019[105] - The group's operating profit before tax was HKD 631 million, remaining stable compared to HKD 632 million in the previous year[103] Revenue Breakdown - Mobile phone and equipment sales revenue decreased by 52.8% to HKD 359 million from HKD 760 million[31] - Revenue from telecommunications services rose by 11.3% to HKD 4,025 million compared to the same period last year[39] - Internet business revenue was HKD 552 million, an increase of HKD 22 million or 4.2% compared to the same period in 2019, driven by a 3.0% increase in average broadband users to over 194,000[64] - International telecom business revenue increased by 39.0% or HKD 327 million, with voice business revenue at HKD 588 million, up 6.1% from the previous year[65] - Corporate business revenue rose by 13.3% to HKD 1.718 billion in the first half of 2020, compared to HKD 1.516 billion in the same period of 2019[66] Operational Highlights - The company completed the first phase of 5G network construction, achieving outdoor full coverage in Macau[26] - The company launched a multi-number SIM service (SIMN) for cross-border mobile applications and banking services[24] - The number of residential fiber users increased by 3.7% and business fiber users grew by 1.6% compared to the end of last year[41] - The average monthly revenue per residential and business user increased by 1.8% and 5.4%, respectively, contributing to higher internet business revenue growth[41] - The company has established new network points in multiple locations in China and Vietnam to enhance its international market presence[41] - The cloud computing service has developed eight major solutions supported by 18 service centers across various regions, including Greater China, North America, and Europe[41] - The company is expanding its ICT services in Southeast Asia, with the "Pacific Internet" brand gaining significant influence in the region[43] Cash Flow and Capital Expenditure - Cash inflow from operating activities was HKD 1.376 billion, an increase of 6.8% compared to HKD 1.288 billion in 2019[75] - The group recorded a net cash inflow of HKD 40 million for the six months ended June 30, 2020[76] - Total capital expenditure for the six months ended June 30, 2020, was HKD 479 million, with HKD 268 million invested in 5G and HKD 73 million for data center renovations[77] - Cash generated from operating activities was HKD 1,433 million, an increase of 9.4% compared to HKD 1,310 million in the same period of 2019[112] Shareholder Information - The interim dividend remained consistent at 5.0 HKD cents per share, unchanged from the same period last year[32] - The company plans to declare an interim dividend of HKD 0.05 per share, consistent with the previous year, resulting in a total of HKD 183 million[145] - The company paid dividends of HKD 550 million to shareholders, an increase from HKD 511 million in the previous year, representing a rise of approximately 7.64%[113] Debt and Liquidity - Net borrowings decreased to HKD 48.23 billion, with the net debt-to-equity ratio dropping from 35% as of December 31, 2019, to 34% as of June 30, 2020[81] - Total borrowings as of June 30, 2020, were HKD 61.68 billion, with HKD 3.41 billion due within the next twelve months[84] - The group maintained cash reserves sufficient to cover HKD 341 million in upcoming borrowings and HKD 265 million in contracted capital commitments[85] - The group plans to manage liquidity risks by maintaining adequate cash reserves and accessing committed credit facilities[88] Employee and Corporate Governance - The group has over 2,500 employees and operates in 21 countries and regions, connecting over 600 operators globally[6] - The group maintained a stable employee count of 2,526 as of June 30, 2020, with 524 employees in Hong Kong and 1,677 in mainland China and Macau[99] - The company is committed to maintaining high standards of corporate governance to enhance investor confidence[177] - The audit committee reviewed the interim report and recommended its adoption by the board[177] COVID-19 Impact - The impact of the COVID-19 pandemic on the group's business and performance has not been significant at this stage, with measures implemented to monitor and mitigate effects[19] - The group will continue to closely monitor the development of the COVID-19 pandemic and evaluate its impact on financial conditions and operational performance[19] - The group has established a pandemic response leadership team to ensure employee safety and health during the COVID-19 crisis[99]
中信国际电讯(01883) - 2020 - 中期财报