电讯首科(03997) - 2025 - 年度财报

Chairman's Report The group experienced a significant decline in revenue and gross profit in FY2025, leading to an increased annual loss, primarily due to intense market competition and an impairment loss on investment properties FY2025 Performance Overview | Indicator | FY2025 (HKD) | FY2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. 44,223,000 | Approx. 54,387,000 | -18.7% | | Gross Profit | Approx. 3,532,000 | Approx. 11,251,000 | -68.6% | | Annual Loss | Approx. 13,405,000 | Approx. 9,174,000 | +46.1% | - The decline in performance was primarily due to intense competition in the mobile and consumer electronics repair service market, leading to reduced repair service revenue. Additionally, a narrower gross profit margin and an impairment loss on investment properties exacerbated the annual loss[9] - Despite volatile macroeconomic conditions and intensified market competition, the Group remains focused on delivering quality services and strengthening customer relationships. Looking ahead, the Group is optimistic about the long-term demand for electronic and mobile devices and will actively explore new business opportunities for diversification[10][11] Chief Executive's Report The report highlights global and local economic volatility, increased industry competition, and the Group's strategic focus on operational efficiency and service quality - During the reporting period, global and local economic volatility, monetary tightening, geopolitical tensions, and stock market fluctuations challenged the business environment, intensifying industry competition and generally narrowing retail gross margins[15] - Faced with uncertainties, the Group focused on core strengths and long-term strategies, prioritizing improved operational efficiency and service quality. The Group is cautiously optimistic about the future, anticipating new growth opportunities from advancements in 5G and artificial intelligence[15] - Moving forward, the Group will strive to streamline operations and manage costs to enhance productivity, while exploring new value-added services and business opportunities to achieve diversified operations and sustainable profitability goals[16][17] Management Discussion and Analysis This section provides an overview of the industry, a review of the Group's business and financial performance, and details on financial assets, liquidity, and employee policies Industry Overview The global smartphone market grew in 2024, driven by mid-to-low-end models, while Hong Kong's repair and refurbishment market remains highly competitive - The global smartphone market experienced overall growth in 2024, primarily driven by strong demand for mid-to-low-end phones in China and emerging markets[20] - The Hong Kong mobile phone repair and refurbishment market is highly competitive, but the Group maintains its market position through industry experience, customer relationships, and a skilled technical team[20] Business Review In the current fiscal year, the Group's revenue decreased by 18.7% to approximately HKD 44.22 million, gross profit fell to approximately HKD 3.53 million, and annual loss expanded to approximately HKD 13.41 million, primarily due to reduced repair service revenue, narrower gross margins, and impairment losses on investment properties FY2025 Key Performance Indicators | Indicator | FY2025 (HKD) | FY2024 (HKD) | | :--- | :--- | :--- | | Revenue | Approx. 44,223,000 | Approx. 54,387,000 | | Gross Profit | Approx. 3,532,000 | Approx. 11,251,000 | | Annual Loss | Approx. 13,405,000 | Approx. 9,174,000 | Financial Review The Group's total revenue decreased this fiscal year, mainly due to an 18.8% reduction in repair service income, while sales costs decreased by 5.7% Revenue Composition | Revenue Category | FY2025 (HKD) | FY2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Repair Service Revenue | 44,019,000 | 54,195,000 | -18.8% | | Sales of Accessories and Support Services | 204,000 | 192,000 | +6.3% | Cost of Sales Composition | Cost Category | FY2025 (HKD) | FY2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Total Cost of Sales | 40,691,000 | 43,136,000 | -5.7% | | Cost of Inventories Sold | 12,470,000 | 13,474,000 | -7.5% | | Direct Labor Costs | 28,221,000 | 29,662,000 | -4.9% | - The annual loss expanded to HKD 13.41 million, primarily due to a significant decrease in gross profit and an increase in impairment loss on investment properties to HKD 4.89 million. Positive factors included a one-off gain of HKD 1.45 million from the disposal of financial assets and no fair value change loss on financial assets this year (compared to a loss of HKD 4.75 million last year)[28] Investment in Financial Assets As of March 31, 2025, the Group had sold all its financial assets, specifically 39,440 shares of HKEX, realizing a gain of approximately HKD 1.45 million Financial Asset Disposal Details (HKEX 00388.HK) | Indicator | Amount (HKD thousands) | | :--- | :--- | | Investment Cost | 15,785 | | Fair Value as of March 31, 2024 | 8,984 | | Gain on Disposal for the Year Ended March 31, 2025 | 1,448 | Liquidity and Financial Resources As of March 31, 2025, the Group maintained a sound liquidity position with approximately HKD 18.76 million in current assets and HKD 6.39 million in current liabilities Liquidity Indicators (as of March 31, 2025) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Current Assets | 18,758,000 | 31,370,000 | | Current Liabilities | 6,392,000 | 12,639,000 | | Cash and Cash Equivalents | 5,702,000 | 3,811,000 | | Unutilized Banking Facilities | 10,200,000 | - | Employees and Remuneration Policy As of March 31, 2025, the Group employed 93 full-time employees, a decrease from 109 last year, with remuneration based on performance, experience, and market standards - As of March 31, 2025, the Group's number of full-time employees was 93, a decrease of 16 from 109 in 2024[38] Directors and Senior Management This section provides detailed biographies of the company's board members and senior management, including their roles, professional backgrounds, and academic qualifications - This section details the personal biographies of the company's board members and senior management, including their age, position, responsibilities, professional background, academic qualifications, and appointments within the Group and other companies[40][41][42][43][44][45][46][47] Corporate Governance Report This report outlines the Group's corporate governance framework, including the board of directors, various committees, accountability, audit functions, and shareholder rights Board of Directors The Board comprises three non-executive, one executive, and three independent non-executive directors, meeting listing rule requirements, with distinct roles for Chairman and CEO - The Board currently consists of 7 members, including 3 non-executive directors, 1 executive director, and 3 independent non-executive directors, complying with listing rules requiring at least one-third independent non-executive directors[52] - The roles of Chairman (Mr. Cheung King Shek) and Chief Executive Officer (Mr. Cheung King Fung) are held by different individuals, in compliance with the Corporate Governance Code[59] - During the reporting period, Independent Non-Executive Director Ms. Kwok Yuen Man resigned, and Ms. Wong Wai Yee was appointed to ensure the company's continued compliance with listing rules regarding board composition, audit committee membership, and gender diversity[57][58] Board Committees The company has established Audit, Remuneration, and Nomination Committees, all composed of independent non-executive directors, to oversee financial reporting, compensation, and board structure - The Audit Committee comprises three independent non-executive directors, with Mr. Cho Ka Yee as Chairman, primarily responsible for reviewing financial statements, monitoring internal control systems, and recommending external auditors[67][68] - The Remuneration Committee consists of three independent non-executive directors, with Mr. Fong Ping as Chairman, responsible for advising the Board on remuneration policies and structures for directors and senior management[69][70] - The Nomination Committee is primarily composed of independent non-executive directors, responsible for reviewing the Board's structure, size, and composition, and making recommendations on director appointments and succession planning[73] Accountability and Audit The Board affirms its responsibility for preparing true and fair financial statements on a going concern basis, with external audit services provided by Shinewing (HK) CPA Limited Auditor's Remuneration (Reporting Period) | Service Type | Fee (HKD) | | :--- | :--- | | Audit Services | Approx. 530,000 | | Non-Audit Services | Approx. 130,000 | - The Board is responsible for preparing true and fair consolidated financial statements on a going concern basis[89] - The Board has reviewed the effectiveness of the Group's internal control systems, covering financial, operational, and compliance controls, and considers them effective and adequate[93][94] Shareholders' Rights This report clarifies shareholders' key rights, including procedures for convening general meetings and nominating individuals for election as directors - 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 in writing[99] - Shareholders have the right to nominate individuals for election as directors at general meetings, subject to specific written notice procedures within designated deadlines[100] Environmental, Social and Governance Report This report details the Group's commitments and performance in environmental protection, employment practices, operational conduct, and key performance indicators Environmental Protection The Group is committed to environmental protection, adhering to regulations, managing emissions and waste, conserving resources, and addressing climate change risks - Greenhouse gas emissions primarily originate from Scope 2 (purchased electricity) and Scope 3 (waste paper disposal), with the Group implementing energy-saving and waste paper recycling measures to reduce emissions[125] - The Group classifies and manages waste, recycling general office waste and waste paper, and entrusting hazardous waste (e.g., batteries, electronic waste) to qualified companies for proper disposal[126][127] - The Group has established a framework for addressing climate change, with the Board overseeing climate-related risks and developing internal guidelines and contingency plans for extreme weather events like typhoons and heavy rain[132][133][134] Employment and Labor Practices The Group prioritizes employee rights, adheres to labor laws, implements non-discriminatory employment policies, and provides comprehensive health, safety, and training programs - The Group strictly complies with labor laws such as the Employment Ordinance, adopts a zero-tolerance non-discrimination policy, and prevents illegal child labor through identity document verification[137] - The Group is committed to ensuring employee health and safety, establishing emergency measures, and distributing safety leaflets covering electrical safety, fire prevention, and proper working postures. No work-related fatalities have been reported in the past three years[141][142] - The Group provides employees with induction training, brand-oriented skills training, and customer service training to enhance professional skills and service quality[143] Operating Practices The Group focuses on supply chain management, product quality, customer privacy, and anti-corruption in its operations, ensuring ethical and responsible business conduct - Supply Chain Management: The Group has supplier approval and evaluation procedures, prioritizing environmental protection, employee management, and social governance performance, and prefers local or nearby suppliers to reduce carbon footprint[145][146] - Product Quality and Customer Service: Procedures include incoming inspection, segregation of non-conforming products, and customer complaint handling. No product recalls due to safety or health reasons, nor any product quality-related complaints, were received this year[147] - Anti-Corruption: The Group strictly complies with the Prevention of Bribery Ordinance, implementing internal guidelines, codes of conduct, and reporting channels. No corruption-related legal proceedings against the Group or its employees were reported this year[150][151] Key Performance Indicators This section quantifies the Group's environmental and social performance, showing decreases in greenhouse gas emissions and energy consumption, but an increase in hazardous waste generated Environmental Key Performance Indicators | Environmental Indicator | 2024/25 | 2023/24 | | :--- | :--- | :--- | | Total Greenhouse Gas Emissions (tonnes of CO2 equivalent) | 107 | 120 | | Total Hazardous Waste Generated (kg) | 45 | 0 | | Total Non-Hazardous Waste Generated (tonnes) | 29 | 30 | | Total Energy Consumption (MWh) | 267 | 287 | | Total Plastic Consumption (kg) | 1,062 | 2,113 | Social Key Performance Indicators | Social Indicator | 2024/25 | 2023/24 | | :--- | :--- | :--- | | Total Employees (Hong Kong) | 139 | 289 | | - Full-time | 89 | 105 | | - Part-time | 50 | 184 | | Employee Turnover Rate (Hong Kong) | 114% | 45% | | Number of Suppliers (Hong Kong) | 63 | 78 | Directors' Report This report covers the Group's principal risks, dividend policy, concentration of major customers and suppliers, and details of connected transactions Principal Risks and Uncertainties The Group faces key risks including market competition, technological changes, cybersecurity threats, regulatory compliance, strategic growth, and financial exposures - The Group has identified five major risks: - Market Risk: Intense industry competition with widespread after-sales service support[173] - Technology Risk: Operations rely on technological innovation and face cybersecurity threats[174] - Regulatory and Legal Risk: Business must comply with laws and regulations across multiple jurisdictions[175] - Strategic Risk: Existing business model targets growth, involving internal expansion or external acquisitions[176] - Financial Risk: Detailed in Note 6 to the consolidated financial statements[177][178] Dividend Policy The company has adopted a dividend policy where declarations are determined by the Board based on performance, financial position, and future needs, with no preset payout ratio - This fiscal year, the Board declared a second-quarter dividend of HKD 0.02 per share on November 28, 2024, and a fourth-quarter dividend of HKD 0.02 per share on June 27, 2025[182] Major Customers and Suppliers The Group exhibits high customer and supplier concentration, with the top five customers accounting for 58.4% of total revenue and the top five suppliers for 99.8% of inventory costs Customer and Supplier Concentration | Category | Percentage | | :--- | :--- | | Top Five Customers' Share of Revenue | 58.4% | | Largest Customer's Share of Revenue | 25.5% | | Top Five Suppliers' Share of Inventory Costs | 99.8% | | Largest Supplier's Share of Inventory Costs | 80.0% | Connected Transactions The Group's connected transactions primarily involve Telecom Digital Holdings Limited and its subsidiaries, with actual transaction amounts exceeding HKD 3 million this fiscal year - The actual amount of connected transactions with Telecom Digital Holdings Group for this fiscal year was approximately HKD 3,452,000 (2023/24: approximately HKD 4,046,000)[218] - The independent non-executive directors have reviewed the continuing connected transactions and confirmed that they were entered into in the ordinary course of the Group's business on normal commercial terms, in the overall interest of shareholders[219][221] Independent Auditor's Report Shinewing (HK) CPA Limited, the auditor, confirms that the consolidated financial statements fairly represent the Group's financial position and performance in accordance with HKFRS and the Hong Kong Companies Ordinance - The auditor, Shinewing (HK) CPA Limited, believes that the consolidated financial statements truly and fairly reflect the Group's consolidated financial position as of March 31, 2025, and its financial performance and cash flows for the year then ended, and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[230] - A key audit matter is the "Valuation of Trade Receivables". The auditor reviewed the reasonableness of management's methodology and assumptions for assessing Expected Credit Losses (ECL) and evaluated for signs of management bias. As of March 31, 2025, trade receivables amounted to HKD 7,502,000, with no expected credit losses recognized[232][233][234] Consolidated Financial Statements This section presents the Group's consolidated financial statements, including the statement of profit or loss and other comprehensive income, statement of financial position, and statement of cash flows Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended March 31, 2025, the Group reported revenue of HKD 44.22 million, an 18.7% decrease year-on-year, with the annual loss expanding to HKD 13.41 million Consolidated Statement of Profit or Loss Summary (For the Year Ended March 31) | Indicator (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 44,223 | 54,387 | | Gross Profit | 3,532 | 11,251 | | Loss Before Tax | (13,511) | (9,234) | | Annual Loss | (13,405) | (9,174) | | Total Comprehensive Expense for the Year | (13,736) | (9,299) | | Basic and Diluted Loss Per Share (HKD) | (0.1044) | (0.0715) | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets decreased to HKD 61.86 million from HKD 85.62 million last year, with total liabilities also decreasing to HKD 7.43 million Consolidated Statement of Financial Position Summary (as of March 31) | Indicator (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 43,099 | 54,246 | | Current Assets | 18,758 | 31,370 | | Total Assets | 61,857 | 85,616 | | Liabilities and Equity | | | | Current Liabilities | 6,392 | 12,639 | | Non-current Liabilities | 1,034 | 2,243 | | Total Liabilities | 7,426 | 14,882 | | Net Assets | 54,431 | 70,734 | | Total Equity | 54,431 | 70,734 | Consolidated Statement of Cash Flows For the year ended March 31, 2025, the Group reported a net cash outflow from operating activities of HKD 0.87 million, a net cash inflow from investing activities of HKD 10.66 million, and a net cash outflow from financing activities of HKD 7.90 million Consolidated Statement of Cash Flows Summary (For the Year Ended March 31) | Indicator (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash From Operating Activities | (868) | 215 | | Net Cash From Investing Activities | 10,659 | (269) | | Net Cash From Financing Activities | (7,900) | (728) | | Net Increase (Decrease) in Cash and Cash Equivalents | 1,891 | (782) | | Cash and Cash Equivalents at Year End | 5,702 | 3,811 | Notes to the Consolidated Financial Statements This section provides detailed notes supporting the consolidated financial statements, covering revenue, segment information, investment properties, and related party transactions Revenue The Group's revenue is entirely derived from contracts with customers and recognized in Hong Kong, with repair services being the predominant source Revenue by Major Product or Service Line | Category (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Repair Service Revenue | 44,019 | 54,195 | | Sales of Accessories and Support Services | 204 | 192 | | Total | 44,223 | 54,387 | Segment Information The Group operates a single business segment, providing repair and refurbishment services for mobile phones and other personal electronic devices, along with related accessory sales - The Group operates a single segment, with all operations and assets located in Hong Kong, thus no geographical segment information is presented[397][398] Major Customer Revenue | Customer (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Customer I | 11,294 | 14,831 | | Customer II | 6,800 | 10,345 | | Customer III | 6,256 | 7,056 | Investment Properties As of March 31, 2025, the Group's investment properties had a carrying value of HKD 39.50 million, a decrease from HKD 46.40 million last year, with an impairment loss of HKD 4.89 million recognized this year Investment Property Carrying Value Movement (HKD thousands) | Item | Amount | | :--- | :--- | | Carrying Value as of March 31, 2024 | 46,400 | | Depreciation Provision for the Year | (2,008) | | Impairment Loss for the Year | (4,892) | | Carrying Value as of March 31, 2025 | 39,500 | - The fair value of investment properties is assessed by an independent valuer using the income approach, with significant unobservable inputs including current market rent and reversionary yield[424][427] Related Party Transactions and Balances The Group engages in various transactions with related parties, primarily companies beneficially owned by directors, including logistics fees, lease payments, and repair services Major Related Party Transactions (HKD thousands) | Transacting Party | Nature of Transaction | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Telecom Logistics Network Limited | Payment for Logistics Fees | 940 | 1,029 | | Onpo International Limited | Payment for Lease Fees | 1,936 | 1,672 | | Telecom Digital Info Limited | Receipt of Repair Service Revenue | 504 | 550 | - The total annual remuneration for key management personnel (including directors and senior executives) was HKD 5,273,000, an increase from HKD 4,758,000 last year[469] Five-Year Financial Summary This section provides a five-year overview of the Group's financial performance, highlighting trends in revenue, gross profit, annual profit/loss, assets, and liabilities Five-Year Financial Performance Summary (For the Year Ended March 31) | Indicator (HKD thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Performance | | | | | | | Revenue | 44,223 | 54,387 | 51,381 | 34,757 | 38,350 | | Gross Profit | 3,532 | 11,251 | 11,385 | 13,435 | 15,325 | | Annual (Loss) Profit | (13,405) | (9,174) | (7,115) | (1,007) | 9,573 | | Assets and Liabilities | | | | | | | Total Assets | 61,857 | 85,616 | 89,107 | 97,047 | 100,122 | | Total Liabilities | (7,426) | (14,882) | (9,074) | (9,732) | (4,341) | | Equity Attributable to Owners | 54,431 | 70,734 | 80,033 | 87,315 | 95,781 | - From the five-year data, the Group's revenue peaked in 2024 before declining in 2025. Gross profit has been continuously decreasing since 2021. After reporting a profit in 2021, the Group has recorded losses for four consecutive years, with the loss in 2025 being the highest in five years. Total assets and shareholders' equity also show a declining trend year-on-year[481]