Financial Performance - The turnover for the year 2020 was HK$464,908,000, a decrease of 43.2% from HK$817,141,000 in 2019[32]. - Gross profit for 2020 was HK$71,301,000, down 2.8% from HK$73,356,000 in 2019[32]. - The net loss for the year was HK$127,571,000, compared to a net loss of HK$115,643,000 in 2019, representing an increase in loss of 10.5%[32]. - The loss from operations was HK$122,923,000, slightly higher than the loss of HK$118,971,000 in 2019[32]. - Finance costs increased significantly to HK$17,069,000 in 2020 from HK$3,317,000 in 2019, marking a rise of 414.5%[32]. - Revenue from trading telecommunication products decreased by 75.2% year-on-year to approximately HK$115.8 million in 2020, down from HK$468.4 million in 2019[51]. - The Group's total revenue for 2020 was approximately HK$464.9 million, representing a decrease of 43.1% compared to HK$817.1 million in 2019[65]. - The net loss attributable to owners of the Company increased by 16.6% year-on-year to approximately HK$110.3 million in 2020, compared to HK$94.6 million in 2019[66]. - Revenue from other services decreased by 13.7% year-on-year to approximately HK$24.5 million in 2020, down from HK$28.4 million in 2019, primarily due to the impact of COVID-19[57]. Assets and Liabilities - The Group's net assets as of December 31, 2020, were HK$1,101.02 million, a decrease from HK$1,187.15 million in 2019[34]. - The Group's non-current assets increased to HK$3,151.82 million in 2020 from HK$2,226.41 million in 2019[34]. - Current liabilities rose to HK$2,050.77 million in 2020, compared to HK$1,291.51 million in 2019[34]. - Total assets increased to approximately HK$3,437.2 million in 2020 from HK$2,558.0 million in 2019, while total liabilities rose to approximately HK$2,336.2 million from HK$1,370.9 million, leading to a gearing ratio of approximately 68.0% in 2020 compared to 53.6% in 2019[78]. - The Group's interest-bearing borrowings rose to approximately HK$1,601.1 million as of December 31, 2020, up from HK$1,081.4 million in 2019[71]. - Current assets decreased to approximately HK$285.4 million in 2020 from HK$331.6 million in 2019, while current liabilities rose to approximately HK$2,050.8 million from HK$1,291.5 million, resulting in a current ratio decline from 0.26 to 0.14[77]. Business Operations - The Group plans to complete three new self-developed data centres in 2021, which is expected to significantly improve financial performance over the next two years[46]. - The trading of mobile device business in Hong Kong was ceased due to the lack of purchase orders and inability to secure 5G device supplies[47]. - The Group's trading business in mainland China was scaled down, with no revenue generated after the first quarter of 2020, leading to a full write-off of intangible assets related to this segment amounting to approximately HK$33.36 million[48]. - The Group's internet finance platform did not generate any revenue in 2020, maintaining the same status as in 2019[55]. - The Group's self-developed data centres generated HK$153.86 million in revenue, while leased server cabinets contributed HK$170.82 million in 2020[44]. Management and Governance - The directors confirmed the accuracy and completeness of the financial report, ensuring no misleading information is presented[5]. - The Group has acknowledged the risks associated with being listed on the GEM, which may affect market volatility and liquidity[2]. - The company has a diverse board with members holding qualifications in accounting, business management, and engineering, enhancing its strategic decision-making capabilities[130][137]. - The board includes members with significant experience in both local and international markets, which is crucial for the company's expansion strategies[130][137]. - The leadership team is well-equipped with a mix of technical and financial expertise, positioning the company for future opportunities in various sectors[130][137]. Legal and Compliance - The Group has not experienced any material difficulties due to fluctuations in currency exchange rates, and no hedging of exchange risk was deemed necessary during the year[104]. - The Directors believe that ongoing legal proceedings do not have any material impact on the operations of the Guangzhou Lotus Hill Data Centre[95]. - There were no material breaches of applicable laws and regulations that significantly impacted the Group's business during the year[163]. Shareholder Information - The Company does not recommend the payment of any dividend for the year ended December 31, 2020[149]. - The Group's dividend policy allows for distribution to shareholders based on various factors, including financial performance and liquidity position[145]. - As of December 31, 2020, the Company had no distributable reserves available for distribution to shareholders[165]. - The total number of outstanding share options under the New Scheme and Old Scheme as of December 31, 2020, is 302,300,000 and 6,840,000 respectively, representing approximately 3.17% and 0.07% of the total shares issued[200].
中国新电信(08167) - 2020 - 年度财报