SMARTONE TELE(HK:00315)2024-10-07 09:15Financial Performance - For the fiscal year ending June 30, 2024, the company reported a total revenue of HKD 6,221 million, a decrease of 7.99% from HKD 6,763 million in the previous year[7]. - The basic earnings per share increased to HKD 0.43 from HKD 0.24, reflecting an increase of 79.17%[7]. - The company's total equity attributable to shareholders increased to HKD 5,186 million from HKD 5,084 million, reflecting a growth of 2.01%[9]. - The company reported a profit attributable to shareholders of HK$470,000,000, representing a 75% increase compared to the previous year[27]. - Total revenue for the group is HKD 6.221 billion, an 8% decrease from HKD 6.763 billion last year, primarily due to a decline in mobile phone and accessory sales[34]. - Service revenue slightly decreased by 1% to HKD 4.509 billion, while service revenue excluding prepaid, mobile virtual network operator, and SMS business grew by 2%[34]. - The group maintains a strong financial position with total equity of HKD 5.186 billion as of June 30, 2024[37]. - The group generated operating cash flow of HKD 2.162 billion during the year, compared to HKD 2.254 billion in the previous year[37]. - The proposed final dividend is HKD 0.175 per share, totaling HKD 0.32 per share for the year[30]. - The company's distributable reserves amounted to $747,268,000, a decrease from $1,117,995,000 as of June 30, 2023[148]. Operational Highlights - The net cash inflow from operating activities was HKD 2,162 million, a decrease of 4.08% from HKD 2,254 million in the previous year[9]. - The company has fully upgraded its network to 5G-Advanced, supporting smart dynamic network slicing and AI resource management, enhancing service reliability for enterprise customers[11]. - The penetration rate of 5G service customers has risen to approximately 40%, with the ARPU for 5G services reaching twice that of 4G services[27]. - Revenue and EBITDA from the 5G home broadband service grew by 33% and 70% respectively compared to the previous year[27]. - The company has invested in 5G network construction at key locations, including the Hong Kong International Airport and major railway stations, to support government economic development plans[11]. - The company plans to enhance network coverage in all major country parks to improve safety and emergency response efficiency[11]. - The company has intercepted over 400 million nuisance calls since the launch of its "Call Guard" service, enhancing customer privacy and security[24]. - The new CARE mobile application features an upgraded personalized interface, improving customer experience and account management[25]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[45]. - The board consists of three executive directors, five non-executive directors, and six independent non-executive directors as of June 30, 2024[48]. - The company has arranged appropriate liability insurance for its directors to cover responsibilities arising from corporate activities[51]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[51]. - The company held four board meetings and one annual general meeting during the fiscal year ending June 30, 2024, with all executive directors attending all meetings[56]. - The chairman and CEO positions are held by different individuals to enhance independence and accountability[53]. - The remuneration committee reviewed executive directors' compensation, including performance bonuses, during the fiscal year ending June 30, 2024[61]. - All directors are required to participate in ongoing professional development to ensure they are well-informed about the company's operations and governance policies[57]. Risk Management and Compliance - The group has established a risk management and internal control system, which includes a comprehensive organizational structure and authorization system to ensure compliance with laws and regulations[71]. - An independent internal audit team consisting of five qualified professionals is in place, reporting directly to the audit committee and CEO, ensuring the effectiveness of risk management and internal controls[72]. - The board has conducted an annual review of the risk management and internal control system, confirming its appropriateness and effectiveness for the fiscal year ending June 30, 2024[72]. - The company has implemented various policies to ensure compliance with anti-corruption laws, with no significant legal issues reported during the review period[116][118]. - The company has established a whistleblowing policy to allow employees and external parties to report misconduct confidentially[116]. Environmental and Social Responsibility - The company aims to reduce greenhouse gas emissions and total energy consumption density annually, promoting environmental awareness and eco-friendly management practices[92]. - SmarTone achieved a 25% improvement in energy efficiency by modernizing base stations with the latest software and hardware[93]. - The company implemented AI-based network solutions that further enhanced energy efficiency by 11%, resulting in a total energy efficiency improvement of 36%[93]. - SmarTone partnered with HKBR to recycle over 90% of discarded lead-acid batteries from exchange and data centers, minimizing hazardous waste[93]. - The company promotes a healthy work environment through various employee wellness programs and flexible work arrangements[100]. - SmarTone's volunteer team engages in community service activities, including workshops for seniors on smartphone usage and distributing meals to vulnerable groups[125][126][127]. Employee and Training Initiatives - The total employee costs for the year ending June 30, 2024, were HKD 713 million, down from HKD 731 million in 2022/23[43]. - As of June 30, 2024, there were 1,756 full-time employees, a decrease from 1,830 employees as of June 30, 2023[43]. - The number of trained employees decreased to 818 for the year ending June 30, 2024, down from 1,034, indicating a 20.9% decline in training participation[135]. - The average training hours per ordinary employee decreased to 10.63 hours for the year ending June 30, 2024, compared to 16.07 hours the previous year, a reduction of 33.9%[135]. - The company actively engages in employee development through various interest classes to foster curiosity and personal growth[105]. Shareholder Engagement - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting, which must be conducted in physical format[77]. - Shareholders can submit written inquiries to the board, ensuring transparency and communication between shareholders and management[78]. - The company has revised its articles of association to comply with the latest legal and regulatory requirements, allowing for physical, electronic, or hybrid meetings for shareholder meetings[81]. - The company is committed to providing stable and sustainable returns to shareholders, with the board considering the group's financial performance and future prospects when determining dividend amounts[83].