香港通讯国际控股(00248) - 2025 - 年度财报

Company Information and Group Structure This section provides fundamental corporate details of Hong Kong Communications International Holdings Limited, including its board members, company secretary, registered office, principal place of business, share registrar, auditor, and principal bankers Company Information This section provides fundamental corporate details of Hong Kong Communications International Holdings Limited, including its board members, company secretary, registered office, principal place of business, share registrar, auditor, and principal bankers - The Chairman and Chief Executive Officer of the company is Mr Chan Chung Yee[4] - The company's auditor is Shinewing (HK) CPA Limited[4] - The company's stock code on the Hong Kong Stock Exchange is 248[5] Group Structure Hong Kong Communications International Holdings Limited operates as a top-tier investment holding company with wholly-owned subsidiaries engaged in diverse businesses, primarily IoT solutions, mobile phone sales, and property investment across Hong Kong, Macau, mainland China, Singapore, and Thailand - The Group's businesses operate through several wholly-owned subsidiaries, covering IoT solutions, mobile phone sales, and property investment[6] - Business geographical coverage includes Hong Kong, Macau, mainland China (Shanghai), Singapore, and Thailand[6] Management Discussion and Analysis This section analyzes the Group's financial performance, segment results, future outlook, liquidity, and human resources for the reporting period Overall Performance For the year ended March 31, 2025, the Group faced severe challenges, with turnover significantly declining by 51% and loss attributable to equity holders expanding to HKD27 million, primarily due to a substantial decrease in revenue and gross profit 2025 Financial Year Key Performance Indicators | Indicator | 2025 FY | 2024 FY | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover | HKD86 million | HKD176 million | -51% | | Loss attributable to equity holders | HKD27 million | HKD22 million | Loss widened by 22.7% | Segment Performance During the reporting year, all major business segments of the Group performed poorly, with mobile phone sales sharply declining due to weak demand, IoT solutions turning from profit to loss with halved turnover, and property investment recording a loss despite a slight increase in rental income Overview of Segment Results (2025 FY vs 2024 FY) | Business Segment | Turnover (HKD) | Segment Profit/(Loss) (HKD) | | :--- | :--- | :--- | | Sales of Mobile Phones | 6 million (2025) vs 29 million (2024) | (4 million) (2025) vs (6 million) (2024) | | Sales of IoT Solutions | 78 million (2025) vs 146 million (2024) | (4 million) (2025) vs 5 million (2024) | | Property Investment | 1.5 million (2025) vs 1.2 million (2024) | (0.6 million) (2025) vs (2.6 million) (2024) | Outlook The Group maintains a cautious outlook, anticipating continued weakness in the mobile phone business due to declining overall demand, ongoing market uncertainty for IoT solutions necessitating strict cost control, and sustained impact on occupancy and rental income in property investment from weak leasing market demand - Mobile phone business: As an authorized distributor for Nokia and vivo, sales are expected to remain weak in the coming year[12] - IoT solutions: Market uncertainty will continue to affect demand, leading to strict cost control measures[12] - Property investment: Weak demand in the leasing market will continue to impact occupancy rates and rental income[13] Liquidity and Financial Resources At the fiscal year-end, the Group's cash and bank balances decreased, while bank borrowings reduced, leading to a gearing ratio decline from 66% to 61%, with the Board confident in sufficient liquidity backed by pledged assets Financial Position Summary (as at March 31, 2025) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Cash and bank balances | HKD12 million | HKD25 million | | Bank borrowings | HKD133 million | HKD159 million | | Gearing ratio | 61% | 66% | - As at March 31, 2025, the Group's bank facilities were secured by leasehold land, investment properties, bank deposits, and financial assets totaling approximately HKD205.7 million[21] - The Group's assets and liabilities are primarily denominated in HKD, RMB, and SGD, with no significant foreign exchange risk or hedging arrangements[22] Employees and Dividends As of March 31, 2025, the Group's employee count decreased from 100 to 83, with a slight reduction in total remuneration expenses, and no dividends were recommended due to the annual loss Employee Information | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total employees | 83 persons | 100 persons | | Total employee remuneration | HKD17 million | HKD18 million | - For the year ended March 31, 2025, the company did not declare or propose any dividends[25] Biographies of Directors and Senior Management This section details the backgrounds of the company's executive and independent non-executive directors, highlighting the core management's decades of experience in the information, communication technology, and telecommunications industries, with Chairman and CEO Mr Chan Chung Yee being a key strategist since 1987 Biographies of Directors and Senior Management This section details the backgrounds of the company's executive and independent non-executive directors, highlighting the core management's decades of experience in the information, communication technology, and telecommunications industries, with Chairman and CEO Mr Chan Chung Yee being a key strategist since 1987 - Chairman and Chief Executive Officer Mr Chan Chung Yee joined the Group in 1987 and possesses over thirty years of experience in the information and communication technology industry[30] - The executive director team members have profound professional backgrounds and long-term experience in communication technology, accounting and finance, product development, smart systems, and human resource management[30][31] - The independent non-executive director team comprises professionals from accounting, medical, and technology fields, providing diverse external oversight and advice to the company[34][35] Corporate Governance Report This report outlines the company's adherence to the Listing Rules' Corporate Governance Code, noting two deviations: the combined roles of Chairman and CEO, and the absence of some independent non-executive directors from the 2024 AGM Corporate Governance Practices The company complied with the Listing Rules' Corporate Governance Code during the fiscal year, with two deviations: the combined roles of Chairman and CEO held by Mr Chan Chung Yee, and the non-attendance of some independent non-executive directors at the 2024 AGM due to other commitments - The roles of Chairman and Chief Executive Officer are not separated, both held by Mr Chan Chung Yee, which the Board believes provides strong and consistent leadership[37] - Two independent non-executive directors, Mr Chiu Nga Ying and Dr Chu Chor Lik, were unable to attend the Annual General Meeting on August 23, 2024[37] Board of Directors The Board comprises seven executive and four independent non-executive directors, held nine meetings during the reporting period with some directors having low attendance, and director appointments and re-elections follow the company's articles of association, requiring at least one-third of directors to retire by rotation at each AGM - The Board of Directors consists of 11 members, including 7 executive directors and 4 independent non-executive directors[39] Board Meeting Attendance Record (Partial) | Director Name | Position | Meetings Attended | | :--- | :--- | :--- | | Chan Chung Yee | Executive Director | 9/9 | | Yip Man Hon | Executive Director | 0/9 | | Chu Chor Lik | Independent Non-Executive Director | 0/9 | | Law Ka Hung | Independent Non-Executive Director | 0/9 | | Wong Kwok Leung | Independent Non-Executive Director | 0/9 | Board Committees The company maintains Remuneration, Nomination, and Audit Committees, all chaired by and predominantly composed of independent non-executive directors, responsible for remuneration policy, board structure review, and oversight of financial reporting and internal controls, respectively - The Remuneration Committee consists of three members, chaired by independent non-executive director Mr Chiu Nga Ying, and is responsible for determining the remuneration policy for executive directors[49] - The company adopted a share option scheme in 2022 to incentivize and retain talent; during the reporting period, 8 directors and 52 employees were granted and accepted 88,280,000 share options[49] - The Nomination Committee comprises three independent non-executive directors, chaired by Dr Chu Chor Lik, and is responsible for reviewing the Board's composition and nominating director candidates[54] - The Audit Committee consists of four independent non-executive directors, chaired by Mr Chiu Nga Ying, and is responsible for reviewing financial statements and discussing internal control matters[57] Internal Control and Auditor The Board is responsible for the Group's internal control system, annually reviewing its effectiveness to safeguard assets, ensure accurate accounting records, and comply with regulations, and this section also discloses audit and non-audit fees paid to auditor Shinewing (HK) CPA Limited - The Board is responsible for the Group's internal control system and has reviewed its effectiveness during the year under review, ensuring that major business risks are identified and managed[58][59] Auditor's Remuneration (For the year ended March 31, 2025) | Service Type | Amount ('000 HKD) | | :--- | :--- | | Audit Services | 620 | | Non-Audit Services | 44 | | Total | 664 | Environmental, Social and Governance Report This report details the Group's environmental initiatives, including resource sustainability and energy reduction, and its social responsibilities, such as fair labor practices, employee welfare, and community engagement Environmental (A) The Group's non-production-oriented business has minimal direct environmental impact, yet the company is committed to sustainable resource use through its 4R policy (Reduce, Reuse, Recycle, Replace) and has received waste reduction and energy-saving certificates from the Hong Kong Green Organisation, with total electricity consumption decreasing during the reporting period - The Group's operations do not involve significant emissions of exhaust gas, wastewater, or hazardous waste[71] - The company adopts a 4R policy to promote sustainable resource use and has obtained waste reduction and energy-saving certificates from the Hong Kong Green Organisation[72] Resource Consumption | Resource | 2025 | 2024 | | :--- | :--- | :--- | | Total Electricity Consumption (kWh) | 172,685 | 202,885 | | Total Water Consumption (cubic meters) | 383 | 378 | Social (B) In terms of social responsibility, the Group emphasizes integrity and fairness, strictly adheres to labor standards prohibiting child and forced labor, reported a 3% employee turnover rate (down from 5%), provides staff training and tuition reimbursement, and maintains robust supply chain management, product quality control, and anti-corruption policies, earning the "Caring Company" logo for over 15 consecutive years - As of the end of the reporting period, the Group had 83 employees, with approximately 41% aged 50 or above, and the staff turnover rate decreased from 5% last year to 3%[81] - The Group strictly adheres to labor standards, prohibiting the employment of child or forced labor, with no related violations reported during the period[84] - The company maintains a list of qualified suppliers and regularly reviews their product quality and safety[87] - The Group has been awarded the "Caring Company" logo by The Hong Kong Council of Social Service for over 15 consecutive years[92] Directors' Report This report outlines the Group's principal activities as an investment holding company, refers to the consolidated statement of comprehensive income for annual performance, states no dividends were recommended for the years ended March 31, 2025 and 2024, and notes the company's distributable reserves at the period-end Business and Performance This report outlines the Group's principal activities as an investment holding company, refers to the consolidated statement of comprehensive income for annual performance, states no dividends were recommended for the years ended March 31, 2025 and 2024, and notes the company's distributable reserves at the period-end - The Board does not recommend the payment of any dividend for the year ended March 31, 2025[98] - As at March 31, 2025, the company's distributable reserves amounted to HKD122,315,000, a slight decrease from HKD123,228,000 in the prior year[104] Directors and Interests The report discloses the current year's director list and those retiring by rotation and standing for re-election at the upcoming AGM, along with detailed interests of directors and chief executives in the company's shares, notably Chairman Mr Chan Chung Yee holding approximately 55.71% interest Major Directors' Shareholdings (as at March 31, 2025) | Director Name | Total Number of Shares Interested | Approximate Percentage of Interest | | :--- | :--- | :--- | | Chan Chung Yee | 693,752,246 | 55.71% | | Chan Chung Yin | 96,315,191 | 7.73% | - Ms Lau Man Ting (spouse of Mr Chan Chung Yee) and Ms Lau Wai Han (spouse of Mr Chan Chung Yin) are deemed to have interests in the relevant shares due to their spousal relationships[121][122] Major Customers and Suppliers In the current fiscal year, the Group exhibited very high customer concentration, with the top five customers contributing 87% of total revenue and the largest customer accounting for 59%, while supplier concentration was lower, with the top five suppliers representing 40% of total purchases - The top five customers accounted for approximately 87% of total revenue, with the largest customer contributing approximately 59% of total revenue[125] - The top five suppliers accounted for approximately 40% of total purchases, with the largest supplier contributing approximately 21% of total purchases[125] Independent Auditor's Report This report presents the auditor's opinion on the consolidated financial statements and highlights key audit matters that required significant attention during the audit process Auditor's Opinion Shinewing (HK) CPA Limited, the auditor, believes that the consolidated financial statements fairly present the Group's consolidated financial position as of March 31, 2025, and its financial performance for the year then ended, in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance - The auditor issued an unmodified opinion on the Group's consolidated financial statements[133] Key Audit Matters The auditor identified three key audit matters requiring particular attention due to significant management judgment and estimation: the valuation of investment properties, the impairment assessment of contract assets and trade receivables, and revenue recognition for smart system construction services - Valuation of Investment Properties: The fair value of the Group's investment properties, approximately HKD147 million, involves significant judgment and estimation, making it a key audit matter[137][138] - Impairment of Contract Assets and Trade Receivables: The measurement of expected credit losses requires the application of significant judgment and assumptions, thus identified as a key audit matter[141][142] - Revenue Recognition for Smart System Construction Services: Revenue recognition for this business involves measuring progress towards completion, relying on estimates of total expected costs, which entails significant management judgment, thus listed as a key audit matter[144][145] Consolidated Financial Statements This section presents the Group's consolidated financial performance and position, including the statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows Consolidated Statement of Comprehensive Income For the year ended March 31, 2025, the Group's revenue was HKD85.56 million, a 51% year-on-year decrease, and the annual loss expanded to HKD26.75 million due to lower gross profit and fair value loss on investment properties, resulting in a basic loss per share of 2.15 HK cents Consolidated Statement of Comprehensive Income Summary ('000 HKD) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 85,561 | 176,302 | | Gross Profit | 31,698 | 45,373 | | Loss before tax | (26,748) | (21,992) | | Loss for the year attributable to equity holders of the Company | (26,748) | (21,968) | | Basic loss per share (HK cents) | (2.15) | (1.76) | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets were HKD361 million, a decrease from the prior year, with net assets (total equity) at HKD217 million, down 10.3% year-on-year, where non-current assets primarily comprised investment properties and current assets included a significant portion of contract assets Consolidated Statement of Financial Position Summary ('000 HKD) | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 204,374 | 224,332 | | Current assets | 156,504 | 190,853 | | Total Assets | 360,878 | 415,185 | | Liabilities and Equity | | | | Current liabilities | 143,433 | 172,685 | | Non-current liabilities | 49 | 139 | | Total Liabilities | 143,482 | 172,824 | | Total Equity | 217,396 | 242,361 | Consolidated Statement of Changes in Equity During the reporting period, the Group's total equity decreased from HKD242 million at the beginning of the year to HKD217 million at year-end, primarily due to the HKD26.75 million loss for the year, partially offset by an increase of HKD1.78 million in exchange fluctuation reserve - Total equity decreased from HKD242,361 thousand to HKD217,396 thousand, mainly due to the annual loss of HKD26,748 thousand[169] Consolidated Statement of Cash Flows In the current fiscal year, the Group generated a net cash inflow of HKD19.31 million from operating activities, primarily due to a reduction in contract assets and trade receivables, while financing activities resulted in a net cash outflow of HKD21.75 million, mainly for bank loan repayments, leading to a net decrease of HKD2.99 million in cash and cash equivalents Consolidated Statement of Cash Flows Summary ('000 HKD) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 19,311 | (34,926) | | Net cash (used in) generated from investing activities | (557) | 20,191 | | Net cash (used in) generated from financing activities | (21,745) | 1,853 | | Net decrease in cash and cash equivalents | (2,991) | (12,882) | Notes to the Consolidated Financial Statements This section provides detailed notes to the consolidated financial statements, offering further insights into specific line items and accounting policies Note 7. Revenue Total revenue for the current year was HKD85.56 million, with HKD84.07 million derived from contracts with customers; smart system construction services were the largest revenue source, contributing HKD40.82 million, a significant decrease from HKD111 million last year, while sales of goods were the second largest source Revenue Composition ('000 HKD) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Smart System Construction Services | 40,815 | 111,488 | | Sales of Goods | 35,697 | 52,860 | | Maintenance Services | 6,909 | 8,705 | | Investment Property Rental | 1,493 | 1,228 | | Other Services | 647 | 2,021 | | Total | 85,561 | 176,302 | Note 8. Segment Information The Group segments its operations by business and geography, with IoT solutions in Hong Kong being the largest revenue contributor at HKD75.02 million, though all sales segments recorded losses, and geographically, Hong Kong accounts for the vast majority of revenue (HKD82.43 million) and non-current assets (HKD194 million) 2025 Financial Year Segment Results ('000 HKD) | Reporting Segment | External Revenue | Segment (Loss)/Profit | | :--- | :--- | :--- | | Sales of Mobile Phones in Hong Kong | 5,921 | (4,235) | | Sales of IoT Solutions in Hong Kong | 75,018 | 483 | | Sales of IoT Solutions in Mainland China and other Southeast Asian countries | 3,129 | (4,126) | | Property Investment | 1,493 | (575) | - Revenue from the largest single customer (Customer A) was HKD31.98 million, accounting for 37.4% of total revenue, a significant decrease from HKD106 million (60.4% of total revenue) last year, indicating a contraction in major customer business[334] Note 18. Investment Properties As of March 31, 2025, the Group's investment properties had a fair value of HKD147 million, a decrease from HKD165 million at the beginning of the year, with a HKD18.3 million fair value loss recorded for the year reflecting market value decline, and all properties are located in Hong Kong and pledged as collateral for the Group's bank facilities Investment Property Fair Value Movement ('000 HKD) | Item | Amount | | :--- | :--- | | At beginning of year (April 1, 2024) | 165,200 | | Fair value loss | (18,300) | | At end of year (March 31, 2025) | 146,900 | - All investment properties' fair value measurements are classified as Level 3, meaning their valuation relies on unobservable market data such as estimated market prices and rental yields[364][367] Note 29. Bank Borrowings At the fiscal year-end, the Group's total bank borrowings amounted to HKD133 million, comprising HKD123 million in bank loans and HKD10.58 million in bank overdrafts, all bearing floating interest rates and secured by the Group's properties, financial assets, and bank deposits, and despite some long-term repayment plans, all are classified as current liabilities due to demand clauses Bank Borrowings Composition ('000 HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank loans | 122,902 | 137,842 | | Bank overdrafts | 10,580 | 21,189 | | Total | 133,482 | 159,031 | - All bank term loans and mortgage loans, totaling approximately HKD123 million, contain repayment on demand clauses, thus classified as current liabilities in the statement of financial position[407] Five-Year Financial Summary This section presents the Group's key financial data over the past five years, showing a continuous decline in revenue since 2021 with a sharp drop in 2025, four consecutive years of increasing losses since 2022, and a consistent shrinkage in total assets and net assets (total equity) Five-Year Financial Summary This section presents the Group's key financial data over the past five years, showing a continuous decline in revenue since 2021 with a sharp drop in 2025, four consecutive years of increasing losses since 2022, and a consistent shrinkage in total assets and net assets (total equity) Five-Year Financial Data Summary ('000 HKD) | Item | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 217,122 | 199,096 | 169,524 | 176,302 | 85,561 | | Profit/(Loss) attributable to equity holders | 4,747 | (1,943) | (19,568) | (21,968) | (26,748) | | Total Assets | 391,729 | 380,668 | 427,496 | 415,185 | 360,878 | | Total Liabilities | (110,583) | (99,866) | (164,168) | (172,824) | (143,482) | | Net Assets | 281,146 | 280,802 | 263,328 | 242,361 | 217,396 | Property Details This section lists the Group's self-occupied and investment properties, all located in Hong Kong with 100% Group interest, including a commercial office in Wong Chuk Hang and a portfolio of commercial and residential investment properties in Mong Kok, Tseung Kwan O, Lockhart Road, and Wong Chuk Hang Property Details This section lists the Group's self-occupied and investment properties, all located in Hong Kong with 100% Group interest, including a commercial office in Wong Chuk Hang and a portfolio of commercial and residential investment properties in Mong Kok, Tseung Kwan O, Lockhart Road, and Wong Chuk Hang - All self-occupied and investment properties held by the Group are located in Hong Kong[450] - The investment property portfolio includes commercial (shops, offices) and residential units in locations such as Mong Kok and Tseung Kwan O[450]