电讯数码控股(06033) - 2025 - 年度财报

Chairman's Statement Performance and Business Review The Group's FY2025 performance faced challenges with declines in both revenue and net profit amidst macroeconomic volatility and a cautious Hong Kong retail environment, while product business remained the primary revenue source and property investment provided stable rental returns Key FY2025 Performance Indicators | Metric | FY2025 (Million HKD) | FY2024 (Million HKD) | | :--- | :--- | :--- | | Revenue | 1,331.60 | 1,372.77 | | Net Profit | 22.62 | 56.38 | - The Group primarily operates in four business segments: (i) sales of electronic devices and consumer goods, (ii) provision of operating services to associate New Mobile Communications, (iii) property investment in Hong Kong, and (iv) paging and other telecommunication services[11] - The product business segment is the main revenue source, with annual revenue of approximately 1,040.60 million HKD, accounting for 78.1% of total revenue, and the Group operates 69 retail stores in Hong Kong[11] - Operating services segment revenue decreased by approximately 17.9% to 251.35 million HKD year-on-year, primarily due to intense competition in the telecommunications industry[11] - The property investment segment continued to provide stable rental returns, with the revitalized industrial building in Kwun Tong contributing consistent rental income[12] Outlook Looking ahead, despite a moderate economic recovery in Hong Kong, the retail sector faces uncertainties, and the Group plans to consolidate its market position by streamlining operations, seeking growth opportunities, expanding its retail footprint and product offerings, and actively exploring new business ventures for sustainable growth - The Group will closely monitor market trends, respond swiftly to challenges, and expand its retail footprint and product offerings to meet customer demands[13] - Future efforts will focus on optimizing operating models, enhancing operational efficiency, and actively exploring new business opportunities and diversification initiatives aligned with the Group's strategic objectives[13] CEO's Review Operational Review and Future Outlook During the reporting period, despite a stable economic recovery in Hong Kong, consumer sentiment remained subdued due to a weak property market, yet the Group demonstrated resilience through its network of 69 retail stores, and moving forward, it will focus on strengthening core competitive advantages, vigorously developing the "Mango Mall" e-commerce platform, investing in talent development to enhance service quality, and exploring new business opportunities for long-term success - Despite macroeconomic uncertainties, the integration of artificial intelligence and 5G technologies is expected to drive growth in the telecommunications and smart electronics industries[16] - Future plans include further developing the "Mango Mall" e-commerce platform by enhancing brand awareness, expanding product categories, and upgrading platform functionalities to cater to local consumer needs[19] - The Group recognizes the importance of talent and will continue to invest resources in employee development and retention to improve service quality and operational performance[19] Management Discussion and Analysis Industry Overview and Business Review The Hong Kong telecommunications industry experienced stable growth driven by 5G, with significant increases in mobile communication service subscriptions and data usage, indicating market potential; however, the Group's business still faced challenges, with total revenue decreasing by 3.0% to 1,332 million HKD and net profit declining by 59.9% to 22.62 million HKD, while operating four main businesses and completing the renovation of its Kwun Tong revitalized industrial building, with approximately 70% of its area leased - The Hong Kong telecommunications market continues to grow, with mobile communication service subscriptions reaching 27.23 million and a penetration rate of 351.3% as of February 2025, and mobile data usage increasing by 19.1% year-on-year[21] FY2025 Performance Overview | Metric | FY2025 (Million HKD) | FY2024 (Million HKD) | | :--- | :--- | :--- | | Revenue | 1,331.60 | 1,372.77 | | Net Profit | 22.62 | 56.38 | Financial Review This fiscal year's financial performance was influenced by multiple factors, including a slight 3.0% decrease in total revenue, where product business growth of 1.7% was offset by a 17.9% decline in operating services, and a significant 59.9% drop in net profit primarily due to the absence of property disposal gains (38.10 million HKD last year) and reduced gross profit, partially mitigated by positive fair value changes in financial assets and a substantial 123.9% increase in share of results of associates Segment Analysis Total revenue slightly decreased by 3.0% year-on-year to 1,332 million HKD, with product business revenue growing by 1.7% to 1,041 million HKD remaining the primary revenue source, while operating services revenue declined by 17.9% to 251 million HKD due to intense market competition, and property investment and other segments maintained relatively stable or slightly decreased revenue Revenue by Business Segment (Year Ended March 31) | Business Segment | 2025 (Thousand HKD) | % of Total | 2024 (Thousand HKD) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Product Business | 1,040,602 | 78.1 | 1,023,360 | 74.6 | | Operating Services | 251,353 | 18.9 | 306,297 | 22.3 | | Property Investment | 21,339 | 1.6 | 21,981 | 1.6 | | Other Segments | 18,302 | 1.4 | 21,129 | 1.5 | | Total Revenue | 1,331,596 | 100.0 | 1,372,767 | 100.0 | - Operating services segment revenue decreased by 17.9%, primarily due to intense competition in the mobile communication services market[24] Profit Variation Analysis Profit attributable to owners of the Company for the year was 22.62 million HKD, a significant decrease of 59.9% year-on-year, primarily due to the absence of property disposal gains (38.10 million HKD in the prior year) and reduced gross profit, partially offset by fair value gains on financial assets, increased share of results of associates, and reduced operating expenses and finance costs - Other income and gains significantly decreased by 82.2%, mainly because approximately 38.10 million HKD in property disposal gains were recorded in the prior year, with no such gains in the current year[25] - Share of results of associates (primarily New Mobile Communications) increased by 123.9% year-on-year to 20.62 million HKD, mainly due to reduced cost of sales at New Mobile Communications[27] - Other operating expenses decreased by 12.3% year-on-year, primarily due to lower information fees and reduced rental expenses resulting from a decrease in the number of retail stores (from 73 to 69)[26] - The decline in profit was influenced by multiple factors, including: (i) no property disposal gains; (ii) a shift from loss to gain in fair value of financial assets; (iii) reduced gross profit; (iv) increased share of results of associates; (v) reduced operating expenses and finance costs; and (vi) reduced income tax expense[31] Financial Asset Investment and Liquidity The Group held financial assets at fair value through profit or loss of approximately 34.76 million HKD, primarily listed equities in Hong Kong Exchanges and Clearing and China Merchants Bank; regarding liquidity, the Group had a net current liability position of 493 million HKD at the end of the reporting period but possessed 243 million HKD in unutilized banking facilities, providing sufficient liquidity for ongoing operations, and the gearing ratio slightly decreased from 121.0% to 120.1% Major Listed Equity Securities Investments (As of March 31, 2025) | Stock Name | Hong Kong Exchanges and Clearing | China Merchants Bank | | :--- | :--- | :--- | | Fair Value (Thousand HKD) | 21,281 | 13,480 | | % of Group's Total Assets | 1.8% | 1.1% | | Annual Dividend Income (Thousand HKD) | 658 | 794 | Liquidity and Financial Position (As of March 31, 2025) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Current Liabilities (Million HKD) | 492.73 | 503.39 | | Cash and Cash Equivalents (Million HKD) | 22.69 | 27.33 | | Current Ratio | 0.30 | 0.29 | | Gearing Ratio (%) | 120.1 | 121.0 | | Unutilized Banking Facilities (Million HKD) | 242.85 | - | Dividends and Outlook The Board declared a fourth-quarter interim dividend of 0.02 HKD per share for the year ended March 31, 2025, and looking ahead, the Group maintains a cautiously optimistic outlook on the economic prospects, focusing on cost control and operational efficiency while pursuing business expansion, and actively exploring new business opportunities for sustainable development - The Board declared a fourth-quarter interim dividend of 0.02 HKD per share, compared to 0.04 HKD per share in the prior year[41] - Outlook: The Group will remain cautiously optimistic, focusing on cost control and operational efficiency, enhancing customer experience, and actively exploring new business opportunities and diversification initiatives[46] Directors and Senior Management Board and Executive Members This section details the backgrounds and responsibilities of the company's Board of Directors and senior management members, where the executive director team primarily consists of members of the Cheung family with decades of extensive experience in the telecommunications industry, responsible for the Group's strategic planning, financial management, and operations, while independent non-executive directors provide independent opinions on corporate governance with expertise in accounting, engineering, and real estate - The Executive Board comprises Mr. Cheung King Shing (Chairman), Mr. Cheung King Shan, Mr. Cheung King Chuen, Mr. Cheung King Fung (CEO), Mr. Wong Wai Man, and Ms. Mok Ngan Chu, with the core members being the four Cheung brothers[47][48][49][50] - The Independent Non-Executive Directors are Mr. Lam Yu Lung, Mr. Lau Hing Wah, and Mr. Lo Kam Wing, who possess extensive experience in accounting, engineering, and property investment, respectively[52][53][54] - Senior management includes Ms. Li Wing Chee, Chief Financial Officer, who has extensive experience in financial management and taxation[55] Corporate Governance Report Board and Committees The company is committed to high standards of corporate governance, with a Board of Directors comprising six executive directors and three independent non-executive directors, ensuring at least one-third independence, and the roles of Chairman and Chief Executive Officer are held by different individuals; the company has established Audit, Remuneration, and Nomination Committees, primarily composed of independent non-executive directors, to oversee key areas such as financial reporting, remuneration policies, and director nominations, and during the reporting period, all committees held meetings to fulfill their duties, and all directors actively participated in continuous professional development - The Board of Directors consists of 9 directors, including 6 executive directors and 3 independent non-executive directors, complying with Listing Rules requirements[59][60] - The roles of Chairman (Mr. Cheung King Shing) and Chief Executive Officer (Mr. Cheung King Fung) are clearly separated and held by different individuals[66] - Three committees are established: Audit, Remuneration, and Nomination Committees; the Audit Committee and Remuneration Committee are composed entirely of independent non-executive directors, while the Nomination Committee recently added an executive director, Ms. Mok Ngan Chu, to enhance diversity[76][80][84][85] Board and Committee Meeting Attendance Record During the Reporting Period | Committee | Number of Meetings | Independent Non-Executive Director Attendance Rate | | :--- | :--- | :--- | | Board | 4 | 100% | | Audit Committee | 2 | 100% | | Remuneration Committee | 2 | 100% | | Nomination Committee | 1 | 100% | Accountability, Audit and Internal Control The Board confirms its responsibility for preparing true and fair financial statements, with Shinewing (HK) CPA Limited serving as the external auditor, whose audit service fees were approximately 1 million HKD during the reporting period; the Group has established an effective internal control system and formulated anti-corruption and whistleblowing policies to ensure compliant operations and timely disclosure of inside information Auditor's Remuneration (During Reporting Period) | Service Type | Fee (HKD) | | :--- | :--- | | Audit Services | Approximately 1,000,000 | | Non-Audit Services | Approximately 200,800 | - The Board is responsible for fulfilling corporate governance functions, including formulating and reviewing corporate governance policies, and monitoring director training and compliance[103][105] - The Group has established an internal control system and formulated anti-corruption, anti-bribery, and whistleblowing policies, allowing employees to raise concerns confidentially regarding irregularities[107] Shareholder Rights and Communication The company values communication with shareholders and has established a shareholder communication policy, ensuring timely access to information through various channels such as interim/annual reports, general meetings, and the company website, and the report clearly outlines shareholders' rights and procedures for convening general meetings, nominating director candidates, and submitting inquiries - Shareholders holding not less than one-tenth of the company's paid-up capital have the right to request the Board to convene an extraordinary general meeting[112] - Shareholders have the right to nominate individuals for election as directors at general meetings, subject to submitting written notice according to prescribed procedures[113] Environmental, Social and Governance Report ESG Governance and Strategy The Board bears ultimate responsibility for the Group's ESG matters, overseeing strategy, risk management, and report review; this year, the Group engaged an independent consultant for stakeholder engagement and materiality assessment, identifying key ESG issues such as energy management, waste management, employment compliance, customer privacy protection, and anti-corruption - The Board is responsible for overseeing the Group's ESG management, formulating strategies, and reviewing annual reports, while management is responsible for implementing relevant policies[121] - Key ESG issues identified through materiality assessment include: energy management, waste management, employment compliance, remuneration and benefits, customer privacy protection, information security, and anti-corruption[126] Environmental Protection The Group is committed to environmental protection, complying with relevant regulations, and setting specific targets for emissions, waste, energy, and water resources; key measures include managing vehicle exhaust emissions, promoting low-carbon commuting, setting up recycling bins, adopting energy-efficient equipment (such as LED lights), implementing paperless office practices, and addressing climate change risks; total greenhouse gas emissions for the year were 1,237 tonnes CO2e, an increase year-on-year - The Group has set environmental targets covering four areas: emissions, waste, energy, and water resources, aiming to reduce greenhouse gas emission intensity and optimize resource efficiency[131] Environmental Performance Indicators (2024/25 vs 2023/24) | Metric | 2024/25 | 2023/24 | | :--- | :--- | :--- | | Total GHG Emissions (Tonnes CO2e) | 1,237 | 1,112 | | Total Non-Hazardous Waste Generated (Tonnes) | 57 | 44 | | Total Energy Consumption (MWh) | 3,100 | 2,694 | | Total Water Consumption (Cubic Meters) | 1,760 | 1,255 | - To address climate change, the Group has developed response procedures and strategies for physical risks such as typhoons and transitional risks like policy changes[145] Employment and Labor Practices The Group regards employees as valuable assets, strictly adheres to labor laws, prohibits all forms of discrimination, and eliminates child and forced labor; it provides competitive remuneration and benefits, a safe working environment, and comprehensive development and training opportunities for employees; this year, the employee turnover rate was 19%, a significant improvement from 32% last year - During the reporting period, the Group found no violations of employment and labor standards-related laws and regulations, including those concerning child labor and forced labor[150] - No lost workdays due to work-related injuries were recorded during the reporting period, and there have been no work-related fatalities in the past three years[154] Employee Turnover Rate (By Year) | Metric | 2024/25 | 2023/24 | | :--- | :--- | :--- | | Total Turnover Rate | 19% | 32% | Employee Training Statistics (2024/25) | Metric | Data | | :--- | :--- | | Percentage of Employees Trained | 82% | | Average Training Hours Per Employee | 11 Hours | Operating Practices The Group upholds high standards of business ethics in its operations; in supply chain management, it has established a supplier evaluation mechanism and prioritizes environmentally friendly suppliers; regarding business conduct, the Group strictly protects customer personal data and intellectual property rights, ensures the truthfulness of advertising content, and firmly opposes any form of corruption, with a whistleblowing policy in place - The Group has established an approved supplier list and prioritizes purchasing products with environmental labels and selecting geographically closer suppliers to reduce its carbon footprint[158] - Strict compliance with personal data protection and intellectual property-related regulations, with no relevant violations during the reporting period[160][161] - During the reporting period, no products were recalled due to safety and health reasons, nor were any significant customer complaints received[163] - The Group has formulated anti-corruption and whistleblowing policies, and no concluded corruption litigation cases were reported during the period[164][165] Directors' Report Business and Risks This report outlines the Group's principal businesses, risks, and compliance status; its main business is investment holding, with subsidiaries engaged in product sales, operating services, property investment, and communication services; the Group faces key risks including operational risks, technology risks (such as information security), regulatory risks, human resources risks, and financial risks, and during the reporting period, the Group complied with all material laws and regulations - The Group's principal businesses include: product business, operating services, property investment, and paging and other communication services[179] - Key identified risk factors include: operational risks, information security and cybersecurity threats, regulatory and legal risks, human resources risks, and financial risks[183][184] Shareholders' Equity and Connected Transactions The report details the shareholdings of directors, senior management, and major shareholders, with the controlling shareholders, the Cheung brothers, indirectly holding approximately 54.49% of the company's shares through trusts; additionally, the report lists ongoing connected transactions with East-Asia Group, Sun Asia Group, and Telecom Digital Holdings, all of which have complied with the reporting and review requirements of the Listing Rules, and independent non-executive directors have confirmed that the transaction terms are fair and reasonable - The controlling shareholders, the Cheung brothers, indirectly hold 220,000,000 shares of the company through KW Cheung Family Trust and CKK Investment, representing 54.49% of the issued share capital[210][213][214] - The controlling shareholders have confirmed compliance with the non-competition undertaking[205] Major Continuing Connected Transaction Amounts for FY2025 | Counterparty | Transaction Amount (Million HKD) | | :--- | :--- | | East-Asia Group | 12.88 | | Sun Asia Group | 8.78 | | Telecom Digital Holdings | 3.45 | - The independent auditor has reviewed the continuing connected transactions and issued an unqualified opinion letter, and the independent non-executive directors have also confirmed that the transaction terms are fair and reasonable[229][232] Independent Auditor's Report Audit Opinion and Key Matters Shinewing (HK) CPA Limited, the independent auditor, issued an unqualified opinion on the Group's consolidated financial statements for the year ended March 31, 2025, deeming them to present a true and fair view of the Group's financial position and performance; during the audit, "Valuation of Inventories" was identified as a key audit matter due to the significant management judgment and estimation involved - The auditor's opinion is unqualified, stating that the consolidated financial statements present a true and fair view of the Group's financial position and performance[240] - The key audit matter is "Valuation of Inventories," as identifying the net realizable value and obsolete items of inventories involves significant judgment and estimation; as of March 31, 2025, the carrying amount of inventories was approximately 86.31 million HKD[242][243][244] Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended March 31, 2025, the Group's revenue was 1,332 million HKD, a slight decrease of 3.0% from 1,373 million HKD last year; due to the absence of property disposal gains from the prior year and a decrease in gross profit, profit for the year attributable to owners of the Company significantly declined by 59.9%, from 56.38 million HKD to 22.62 million HKD, with basic earnings per share at 0.06 HKD Consolidated Income Statement Summary (Year Ended March 31) | Metric (Thousand HKD) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 1,331,596 | 1,372,767 | | Profit Before Tax | 26,870 | 71,368 | | Profit for the Year Attributable to Owners of the Company | 22,617 | 56,379 | | Basic Earnings Per Share (HKD) | 0.06 | 0.14 | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets were 1,208 million HKD, total liabilities were 721 million HKD, and total equity was 486 million HKD, with all indicators remaining relatively stable compared to the previous year; non-current assets constituted the major portion of total assets, approximately 998 million HKD, and notably, the Group remained in a net current liability position of 493 million HKD Consolidated Statement of Financial Position Summary (As of March 31) | Metric (Thousand HKD) | 2025 | 2024 | | :--- | :--- | :--- | | Assets | | | | Non-Current Assets | 997,793 | 1,019,140 | | Current Assets | 209,836 | 206,249 | | Total Assets | 1,207,629 | 1,225,389 | | Liabilities and Equity | | | | Current Liabilities | 702,563 | 709,636 | | Non-Current Liabilities | 18,581 | 22,081 | | Total Liabilities | 721,144 | 731,717 | | Total Equity | 486,485 | 493,672 | | Net Current Liabilities | (492,727) | (503,387) | Consolidated Statement of Cash Flows This fiscal year, the Group generated 124 million HKD in net cash from operating activities, a decrease from 189 million HKD last year; net cash outflow from investing activities was 4.84 million HKD; net cash outflow from financing activities was 123 million HKD, primarily used for loan repayments and dividend payments; cumulatively, cash and cash equivalents at year-end decreased by 4.59 million HKD to 22.69 million HKD Consolidated Cash Flow Statement Summary (Year Ended March 31) | Metric (Thousand HKD) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash From Operating Activities | 123,643 | 188,886 | | Net Cash (Used in) From Investing Activities | (4,842) | 86,039 | | Net Cash Used in Financing Activities | (123,395) | (277,437) | | Net Decrease in Cash and Cash Equivalents | (4,594) | (2,512) | | Cash and Cash Equivalents at Year-End | 22,691 | 27,331 | Financial Summary Five-Year Financial Summary This summary presents the Group's key financial data over the past five years, showing that revenue has declined for two consecutive years after peaking in 2023, annual profit has shown a fluctuating downward trend after reaching a high in 2021, total assets have slightly decreased this year after significant growth in recent years, while total equity has maintained steady growth Five-Year Financial Performance Summary (Year Ended March 31) | Metric (Thousand HKD) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,331,596 | 1,372,767 | 1,535,452 | 1,505,079 | 1,038,946 | | Annual Profit | 22,617 | 56,379 | 75,580 | 113,059 | 135,218 | | Total Assets | 1,207,629 | 1,225,389 | 1,372,235 | 851,011 | 645,276 | | Total Equity | 486,485 | 493,672 | 448,293 | 410,303 | 382,121 |