香港通讯国际控股(00248) - 2025 - 年度业绩

Company Information and Disclaimer This section outlines the company's annual results announcement and the disclaimer regarding the content's accuracy and completeness Company Overview This report presents the audited annual results announcement for Hong Kong Communications International Holdings Limited (Stock Code: 248) for the year ended March 31, 2025 - Hong Kong Communications International Holdings Limited (Stock Code: 248) released its audited annual results announcement for the year ended March 31, 2025[2] Disclaimer Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, or completeness, and any losses arising from its reliance - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content, accuracy, or completeness of this announcement, and disclaim liability for any losses arising from its reliance[1] Consolidated Financial Statements This section presents the company's consolidated statement of comprehensive income and financial position, highlighting key financial performance and position changes Consolidated Statement of Comprehensive Income For the year ended March 31, 2025, the company's revenue significantly decreased by 51.47% to HK$'85,561 thousand, gross profit declined by 30.04% to HK$'31,698 thousand, and loss for the year expanded by 21.76% to HK$'26,748 thousand, with basic and diluted loss per share increasing to (2.15) HK cents Consolidated Statement of Comprehensive Income Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 85,561 | 176,302 | -51.47% | | Cost of sales | (53,863) | (130,929) | -58.86% | | Gross profit | 31,698 | 45,373 | -30.04% | | Other income, gains and losses | 782 | 1,818 | -56.99% | | Fair value loss on investment properties | (18,300) | (18,090) | +1.16% | | Loss before tax | (26,748) | (21,992) | +21.63% | | Loss for the year attributable to owners of the Company | (26,748) | (21,968) | +21.76% | | Loss per share – Basic and diluted (HK cents) | (2.15) | (1.76) | +22.16% | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets and total equity both decreased, with non-current assets falling by 8.9% to HK$'204,374 thousand and current assets by 18.0% to HK$'156,504 thousand, while total equity declined by 10.3% to HK$'217,396 thousand Consolidated Statement of Financial Position Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current assets | 204,374 | 224,332 | -8.90% | | Current assets | 156,504 | 190,853 | -18.00% | | Liabilities | | | | | Current liabilities | 143,433 | 172,685 | -16.94% | | Non-current liabilities | 49 | 139 | -64.75% | | Equity | | | | | Total equity | 217,396 | 242,361 | -10.30% | Notes to the Consolidated Financial Statements This section details the basis of financial statement preparation, application of new HKFRSs, segment information, and specific financial account analyses Basis of Preparation The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, complying with the Listing Rules, presented in HKD under the historical cost convention, with certain financial instruments and investment properties measured at fair value - The financial statements comply with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Companies Ordinance, also adhering to the Listing Rules[6] - The statements are prepared on a historical cost basis, with certain financial instruments and investment properties measured at fair value, presented in HKD[6] Application of New and Revised HKFRSs This year saw the initial application of several revised Hong Kong Financial Reporting Standards, including those for lease liabilities in sale and leaseback transactions, liability classification, non-current liabilities with covenants, and supplier finance arrangements, which the Board assessed to have no material impact on the Group's financial performance or position - This year marks the first application of several revised Hong Kong Financial Reporting Standards, including those for lease liabilities in sale and leaseback transactions, liability classification, non-current liabilities with covenants, and supplier finance arrangements[7] - The Board expects that the applied and not yet effective new and revised standards will have no material impact on the Group's results and financial position[7][8] Segment Information The Group's operating segments are categorized by product and service type, primarily including sales of mobile phones in Hong Kong, sales of IoT solutions in Hong Kong, sales of IoT solutions in Mainland China and Southeast Asia, and property investment, with all assets (except financial assets at fair value through profit or loss) and liabilities (except deferred tax liabilities) allocated to reporting segments - The Group's operating segments are classified by product and service type, encompassing sales of mobile phones in Hong Kong, sales of IoT solutions in Hong Kong, sales of IoT solutions in Mainland China and Southeast Asian countries, and property investment[9][10][11] - All assets, except financial assets at fair value through profit or loss, and all liabilities, except deferred tax liabilities, are allocated to the respective reporting segments[11] Segment Revenue and Results In FY2025, external revenue from sales of mobile phones and IoT solutions in Hong Kong significantly decreased, while external revenue from IoT solutions in Mainland China and Southeast Asia slightly declined, and property investment revenue saw a modest increase, with all segments recording losses, and losses for sales of mobile phones in Hong Kong and IoT solutions in Mainland China and Southeast Asia intensifying Segment Revenue and Results Summary | Segment | 2025 External Revenue (HK$'000) | 2024 External Revenue (HK$'000) | YoY Change (%) | 2025 Segment (Loss) Profit (HK$'000) | 2024 Segment (Loss) Profit (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of mobile phones in Hong Kong | 5,921 | 29,047 | -79.62% | (4,235) | (5,670) | | Sales of IoT solutions in Hong Kong | 75,018 | 142,859 | -47.49% | 483 | 1,039 | | Sales of IoT solutions in Mainland China and other Southeast Asian countries | 3,129 | 3,168 | -1.23% | (4,126) | 3,688 | | Property investment | 1,493 | 1,228 | +21.58% | (575) | (2,627) | | Total | 85,561 | 176,302 | -51.47% | (8,453) | (3,570) | Geographical Information In FY2025, external customer revenue from Hong Kong significantly decreased by 52.24% but remained the primary source of income, while external customer revenue from Mainland China and Singapore both declined, and non-current assets were primarily concentrated in Hong Kong Geographical Information Summary | Region | 2025 External Customer Revenue (HK$'000) | 2024 External Customer Revenue (HK$'000) | YoY Change (%) | 2025 Non-current Assets (HK$'000) | 2024 Non-current Assets (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 82,432 | 173,023 | -52.24% | 194,313 | 214,191 | | Mainland China | 1,124 | 581 | +93.46% | 133 | 199 | | Singapore | 2,005 | 2,698 | -25.76% | 151 | 500 | | Total | 85,561 | 176,302 | -51.47% | 194,597 | 214,890 | Reconciliation of Segment Profit/Loss and Assets/Liabilities In FY2025, the total reported segment loss increased to HK$'8,453 thousand, with fair value loss on investment properties and fair value gains (losses) on financial assets at fair value through profit or loss significantly impacting the consolidated loss before tax, while both total assets and total liabilities decreased Reconciliation of Segment Profit/Loss and Assets/Liabilities Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Total reported segment loss | (8,453) | (3,570) | | Fair value loss on investment properties | (18,300) | (18,090) | | Fair value gains (losses) on financial assets at fair value through profit or loss | 5 | (332) | | Consolidated loss before tax | (26,748) | (21,992) | | Total reported segment assets | 350,603 | 405,345 | | Unallocated corporate assets | 10,275 | 9,840 | | Consolidated total assets | 360,878 | 415,185 | | Total reported segment liabilities | 143,433 | 172,775 | | Deferred tax liabilities | 49 | 49 | | Consolidated total liabilities | 143,482 | 172,824 | Major Customer Information In FY2025, revenue contribution from Customer A significantly decreased by 70% but remained a major customer, while Customer B emerged as a new major customer, contributing HK$'18,286 thousand in revenue Major Customer Revenue | Customer | 2025 Revenue (HK$'000) | 2024 Revenue (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Customer A | 31,984 | 106,442 | -70.00% | | Customer B | 18,286 | Not applicable | New major customer | - Major customer revenue is derived from the sales of IoT solutions in Hong Kong segment[18] Other Income, Gains and Losses In FY2025, total other income, gains, and losses significantly decreased by 56.99% to HK$'782 thousand, primarily due to a sharp drop in dividend income from HK$'1,378 thousand to HK$'3 thousand, while government grants slightly increased Other Income, Gains and Losses Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 453 | 491 | -7.74% | | Dividend income | 3 | 1,378 | -99.78% | | Loss on disposal of property, plant and equipment | (119) | (54) | +120.37% | | Exchange gains (losses) | 215 | (80) | From loss to gain | | Government grants | 47 | 31 | +51.61% | | Total | 782 | 1,818 | -56.99% | Finance Costs In FY2025, total finance costs decreased by 28.05% to HK$'6,972 thousand, mainly attributable to a significant reduction in interest on bank borrowings Finance Costs Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 6,484 | 9,373 | -30.82% | | Interest on lease liabilities | 23 | 12 | +91.67% | | Bank charges | 465 | 305 | +52.46% | | Total | 6,972 | 9,690 | -28.05% | Loss Before Tax In FY2025, the loss before tax expanded to HK$'26,748 thousand, with total staff costs slightly decreasing but inventory write-downs significantly increasing Loss Before Tax Components | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration | 620 | 703 | -11.81% | | Depreciation | 1,984 | 1,931 | +2.75% | | Total staff costs | 21,136 | 22,758 | -7.13% | | Write-down of inventories | 212 | 18 | +1077.78% | | Net rental income from investment properties under operating leases | (716) | (483) | +48.24% | - Inventory write-downs significantly increased to HK$'212 thousand, primarily due to certain inventories no longer being suitable for use[19] Taxation No assessable profits were generated in FY2025 and FY2024, thus no provision was made for Hong Kong Profits Tax, PRC Enterprise Income Tax, Singapore Corporate Tax, or Thailand Corporate Tax - The Group had no assessable profits in Hong Kong, Mainland China, Singapore, or Thailand, hence no tax provision was made[20][21] - Hong Kong Profits Tax operates under a two-tiered system, with the first HK$'2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[20] Loss Per Share The basic and diluted loss per share for FY2025 was (2.15) HK cents, an increase from (1.76) HK cents in FY2024, with unexercised share options having an anti-dilutive effect and thus not included in the diluted loss per share calculation due to the net loss recorded Loss Per Share Details | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HK$'000) | (26,748) | (21,968) | | Weighted average number of ordinary shares (shares) | 1,245,331,256 | 1,245,331,256 | | Basic and diluted loss per share (HK cents) | (2.15) | (1.76) | - Unexercised share options were not included in the diluted loss per share calculation due to their anti-dilutive effect[23] Dividends No dividends were paid or proposed for the year ended March 31, 2025, or after the reporting period - No dividends were paid or proposed for FY2025 or after the reporting period[24] Contract Assets As of March 31, 2025, total contract assets amounted to HK$'104,324 thousand, a 12.74% decrease from 2024, primarily stemming from smart system construction services, with a slight reduction in loss allowance Contract Assets Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Smart system construction services | 106,270 | 121,735 | -12.71% | | Less: Loss allowance | (1,946) | (2,182) | -10.82% | | Total | 104,324 | 119,553 | -12.74% | Trade Receivables and Ageing Analysis As of March 31, 2025, total trade receivables significantly decreased by 41.85% to HK$'13,838 thousand compared to 2024, with an average credit period of 7 days to 1 month, though longer terms are granted to customers with good credit, and receivables over 365 days increased significantly Trade Receivables Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables | 15,056 | 25,056 | -39.99% | | Less: Loss allowance | (1,218) | (1,260) | -3.33% | | Net amount | 13,838 | 23,796 | -41.85% | Trade Receivables Ageing Analysis | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 9,069 | 19,085 | -52.58% | | 31 to 60 days | 864 | 670 | +28.96% | | 61 to 90 days | 833 | 2,560 | -67.46% | | 91 to 180 days | 102 | 1,057 | -90.35% | | 181 to 365 days | 1,012 | 400 | +153.00% | | Over 365 days | 3,176 | 1,284 | +147.35% | - The average credit period ranges from 7 days to 1 month, with longer credit terms offered to customers with good credit standing[27] Trade Payables, Accruals and Other Payables and Ageing Analysis As of March 31, 2025, total trade payables increased by 43.01% to HK$'3,091 thousand compared to 2024, while accruals and deposits received significantly decreased, and the average credit period for product purchases is 30 to 60 days Trade Payables, Accruals and Other Payables Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 3,091 | 2,160 | +43.01% | | Accruals and deposits received | 1,242 | 5,481 | -77.31% | | Total | 4,333 | 7,641 | -43.29% | Trade Payables Ageing Analysis | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 1,873 | 943 | +98.62% | | 31 to 60 days | 284 | 187 | +51.87% | | 61 to 90 days | 1 | 155 | -99.35% | | Over 90 days | 933 | 875 | +6.63% | - The average credit period for product purchases is 30 to 60 days, with the Group implementing financial risk management policies to ensure timely settlement[30] Management Discussion and Analysis This section provides an overview of the company's financial performance, segment analysis, future outlook, and details on liquidity, capital, and human resources Overall Performance Review In FY2025, turnover decreased by 51% year-on-year to HK$'86,000 thousand, and loss attributable to owners of the Company expanded to HK$'27,000 thousand, primarily due to reduced revenue and gross profit Overall Performance Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 86,000 | 176,000 | -51.14% | | Loss attributable to owners of the Company | 27,000 | 22,000 | +22.73% | - The increase in loss is primarily attributed to a decline in revenue and gross profit[31] Segment Performance Analysis All major business segments faced challenges in FY2025, with sales of mobile phones and IoT solutions experiencing significant turnover declines and recording losses, while property investment, despite increased rental income, remained in a loss-making state - All major business segments faced challenges, with a general decline in turnover and expanding losses[32][33][34] Sales of Mobile Phones In FY2025, turnover from sales of mobile phones significantly decreased by 79.31% to HK$'6,000 thousand due to weak demand, resulting in a segment loss of HK$'4,000 thousand Sales of Mobile Phones Performance | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 6,000 | 29,000 | -79.31% | | Segment loss | 4,000 | 6,000 | -33.33% | - Weak demand led to a significant decline in turnover from sales of mobile phones[32] Sales of IoT Solutions In FY2025, turnover from IoT solutions decreased by 46.58% to HK$'78,000 thousand, with the segment turning from profit to a loss of HK$'4,000 thousand Sales of IoT Solutions Performance | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 78,000 | 146,000 | -46.58% | | Segment (loss) profit | (4,000) | 5,000 | From profit to loss | Property Investment In FY2025, property investment rental income grew by 25% to HK$'1,500 thousand, but the segment still recorded a loss of HK$'600 thousand, which was a narrower loss compared to the previous year Property Investment Performance | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Rental income | 1,500 | 1,200 | +25.00% | | Segment loss | 600 | 2,600 | -76.92% | Outlook The Group anticipates continued weakness in the mobile phone business due to declining demand, ongoing market uncertainty for IoT solutions necessitating strict cost controls, and pressure on occupancy rates and rental income in the property investment segment from weak leasing market demand - The mobile phone business is expected to remain weak due to an overall decline in demand[35] - Market uncertainty for IoT solutions persists, and the Group will implement strict cost controls[35] - The property investment segment faces pressure on occupancy rates and rental income due to weak demand in the leasing market[36] Liquidity and Financial Resources As of March 31, 2025, cash and bank balances decreased to HK$'12,000 thousand, and bank borrowings fell to HK$'133,000 thousand, with the Board confident that the Group possesses sufficient cash balances and bank facilities to meet operational needs Liquidity and Financial Resources Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 12,000 | 25,000 | -52.00% | | Bank borrowings | 133,000 | 159,000 | -16.35% | - The Board believes the Group has sufficient cash balances and bank facilities to meet its commitments and working capital requirements[37] Gearing Ratio As of March 31, 2025, the gearing ratio (total borrowings as a percentage of shareholders' equity) decreased to 61% from 66% in 2024 Gearing Ratio Summary | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Gearing ratio | 61% | 66% | Capital Structure There were no changes in the Group's capital structure for the year ended March 31, 2025 - The Group's capital structure remained unchanged in FY2025[39] Capital Expenditure During the year, the Group's capital expenditure on property, plant, and equipment amounted to HK$'100 thousand Capital Expenditure Summary | Item | 2025 (HK$'000) | | :--- | :--- | | Capital expenditure on property, plant and equipment | 100 | Employees As of March 31, 2025, the Group's total number of employees decreased to 83 (2024: 100), and total employee remuneration (excluding directors' emoluments) decreased to HK$'17,000 thousand, with the Group maintaining good relations with its employees Employee Statistics | Indicator | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total number of employees | 83 | 100 | -17.00% | | Total employee remuneration (HK$'000) | 17,000 | 18,000 | -5.56% | - Employee remuneration and bonuses are determined based on individual merit and performance, reviewed at least annually[41] Share Option Scheme The share option scheme, adopted on August 26, 2022, aims to incentivize directors and eligible employees and is set to expire on August 26, 2032, with the number of unexercised share options decreasing to 73,992,000 shares, representing 6% of issued shares, as of March 31, 2025 - The share option scheme aims to incentivize directors and eligible employees, valid until August 26, 2032[42] Share Option Scheme Details | Indicator | March 31, 2025 | March 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of unexercised share options | 73,992,000 | 88,280,000 | -16.18% | | Percentage of issued shares | 6% | 7% | -1% | Pledge of Assets As of March 31, 2025, the Group's general banking facilities were secured by leasehold land and buildings, investment properties, bank deposits, and financial assets at fair value through profit or loss Pledged Assets | Type of Pledged Asset | 2025 Carrying/Fair Value (HK$'000) | 2024 Carrying/Fair Value (HK$'000) | | :--- | :--- | :--- | | Leasehold land and buildings | 46,691 | 47,783 | | Investment properties | 146,900 | 165,200 | | Bank deposits | 2,765 | 2,765 | | Financial assets at fair value through profit or loss | 9,340 | 9,206 | Foreign Exchange Fluctuations The Group's assets, liabilities, income, and expenses are primarily denominated in HKD, RMB, and SGD, and while not exposed to significant foreign currency exchange rate fluctuation risks, it does not engage in hedging or financial derivative instruments but closely monitors financial markets - The Group's assets, liabilities, and operating activities primarily involve HKD, RMB, and SGD[44] - The Group is not exposed to significant foreign currency exchange rate fluctuation risks and does not engage in hedging or financial derivative instruments[44] Contingent Liabilities As of March 31, 2025, the Company provided corporate guarantees of HK$'138,000 thousand for general banking facilities granted to its subsidiaries, an amount consistent with the previous year Contingent Liabilities Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Corporate guarantees | 138,000 | 138,000 | Other Information This section covers corporate governance, auditor's review, compliance, share transactions, and arrangements for the Annual General Meeting Closure of Register of Members The Company's register of members will be closed from August 27 to August 29, 2025, to determine eligibility for attending and voting at the Annual General Meeting - The register of members will be closed from August 27 to August 29, 2025, to determine eligibility for voting at the Annual General Meeting[46] Corporate Governance The Group complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules in FY2025, with exceptions noted for the Chairman and Chief Executive Officer being the same person and two independent non-executive directors' absence from the 2024 Annual General Meeting, though the Board believes the combined role provides strong and consistent leadership - The Group complied with the Corporate Governance Code, with exceptions for the Chairman and Chief Executive Officer being the same person and two independent non-executive directors' absence from the Annual General Meeting[47] - The Board believes that the arrangement of having the Chairman and Chief Executive Officer as the same person provides strong and consistent leadership[47] Independent Auditor's Review The auditor, Shinewing (HK) CPA Limited, has reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement, and thus no assurance opinion is expressed - The auditor has reconciled the financial figures in the preliminary announcement with the audited statements but does not express an assurance opinion[48] Compliance with Model Code The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix 10 of the Listing Rules, and all Directors confirmed compliance with the Code during FY2025 - The Company adopted the Model Code in Appendix 10 of the Listing Rules, and all Directors confirmed compliance[49] Audit Committee The Audit Committee has reviewed the interim and annual consolidated financial statements and discussed the audit plan, accounting policies, and financial reporting matters with management and external auditors - The Audit Committee reviewed the financial statements and discussed the audit plan, accounting policies, and financial reporting matters[50] Share Transactions Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during FY2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed shares during FY2025[51] Acknowledgements The Board extends its sincere gratitude to the shareholders, business partners, and all management and staff of the Group - The Board expresses its sincere gratitude to shareholders, business partners, and all staff for their contributions and support[52] Annual General Meeting and Despatch of Annual Report The Annual General Meeting is scheduled for August 29, 2025, with the annual report and notice of meeting to be published on the Company's and HKEX websites and dispatched to shareholders in due course - The Annual General Meeting is scheduled for August 29, 2025, and the annual report and notice of meeting will be published on the Company's and HKEX websites[53] Board of Directors As of the announcement date, the Board of Directors comprises 7 executive directors and 4 independent non-executive directors, with Mr. Chan Chung Yee as Chairman - The Board of Directors consists of 7 executive directors and 4 independent non-executive directors, with Mr. Chan Chung Yee serving as Chairman[54][55]