直通电讯(08337) - 2022 Q3 - 季度财报

Performance Summary The company experienced a revenue decline and increased losses in the first nine months of 2022, leading to no interim dividend declaration Q3 Performance Highlights For the nine months ended September 30, 2022, total revenue decreased by 5.2% year-on-year, with loss attributable to shareholders expanding by 29.5%, resulting in no interim dividend Key Performance Indicators for the First Nine Months of 2022 | Indicator | First Nine Months 2022 | YoY Change | | :--- | :--- | :--- | | Revenue | Approx. HKD 121.788 million | Decrease approx. 5.2% | | Loss attributable to company shareholders | Approx. HKD 13.356 million | Increase approx. 29.5% | | Proposed dividend | Not declared | - | Financial Statements The Group's financial statements reflect a period of declining revenue, increased losses, and a reduction in total equity Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue slightly decreased, while operating and net losses expanded year-on-year due to increased administrative expenses, leading to higher loss per share Summary of Profit or Loss Statement (For the Nine Months Ended September 30) | Item (HKD '000) | 2022 (Unaudited) | 2021 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 121,788 | 128,465 | -5.2% | | Gross Profit | 1,059 | 1,639 | -35.4% | | Operating Loss | (13,504) | (10,454) | +29.2% | | Loss for the period | (13,359) | (10,311) | +29.6% | | Loss attributable to equity holders of the Company | (13,356) | (10,311) | +29.5% | | Loss per share (HK cents) | (7.22) | (5.58) | +29.4% | Condensed Consolidated Statement of Changes in Equity Total equity decreased from HKD 56.024 million to HKD 40.087 million due to period losses and negative comprehensive income items Changes in Total Equity (HKD '000) | Item | Amount | | :--- | :--- | | Balance at January 1, 2022 | 56,024 | | Total comprehensive income for the period | (15,937) | | Balance at September 30, 2022 | 40,087 | Notes to Financial Statements Detailed notes reveal a significant decline in telecommunication service revenue, stable distribution business, and a new impairment loss on trade receivables impacting profitability Revenue Analysis Total revenue is primarily from distribution business, which remained stable, while telecommunication services saw a nearly 90% decline Revenue by Business Segment (For the Nine Months Ended September 30) | Business Segment (HKD '000) | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Telecommunication Services | 1,090 | 9,482 | -88.5% | | Distribution Business | 120,698 | 118,983 | +1.4% | | Total | 121,788 | 128,465 | -5.2% | Key Expense Items for Loss Before Tax Loss before tax was significantly impacted by a new HKD 3.198 million impairment loss on trade receivables, absent in the prior period Key Expense Items (For the Nine Months Ended September 30) | Item (HKD '000) | 2022 | 2021 | | :--- | :--- | :--- | | Impairment loss on trade receivables | 3,198 | – | | Cost of inventories | 119,033 | 117,244 | | Salaries, wages and other benefits | 3,277 | 3,231 | Management Discussion and Analysis The Group's regional business performance varied, with challenges in Hong Kong and China's top-up services, but growth in China's distribution and Singapore's top-up businesses, alongside future strategic initiatives Business Review and Outlook Business performance varied by region, with declines in Hong Kong telecom services, suspension of China top-up services, but strong growth in China distribution and stable Singapore operations, with future focus on 5G and cost control Hong Kong Operations Hong Kong's telecom service revenue significantly decreased due to reduced tourism, and mobile phone distribution revenue also declined by 13.6% - Due to the COVID-19 pandemic, a significant reduction in overseas tourists (especially mainland Chinese tourists) adversely impacted prepaid roaming product sales, leading to a substantial 33.9% year-on-year decrease in telecommunication service revenue (from HKD 1.583 million to HKD 1.046 million, referring to specific telecom services, differing from the total telecom service revenue in Note 4)[32] - Revenue from mobile phone and electronic product distribution business was approximately HKD 60.67 million, a decrease of approximately 13.6% compared to the same period last year[34] China Operations China's mobile and data top-up services were suspended, but mobile phone and electronic product distribution revenue grew significantly by 2.7 times - Due to intense competition and low-profit margins, mobile and data top-up services have been suspended since Q3 2021, generating no revenue in the current period, compared to approximately HKD 7.851 million in the prior period[37] - Revenue from mobile phone and electronic product distribution business was approximately HKD 8.107 million, an increase of approximately 2.7 times compared to the same period last year[38] Singapore Operations Singapore's mobile and data top-up distribution business achieved steady growth of 11.5% year-on-year through e-commerce partnerships - Revenue from Singapore's mobile and data top-up distribution business was approximately HKD 51.921 million, an increase of approximately 11.5% compared to the same period last year[40] Outlook The Group is cautiously optimistic, focusing on a 5G joint venture, strict cost control, and business model transformation towards higher-value information services - The company has entered into a framework agreement with Micas (Shenzhen) Telecommunications Co., Ltd. to establish a joint venture in Hong Kong, aiming to explore global 5G infrastructure opportunities by providing integrated chips and solutions for 5G small cell radio frequency units[43][44] - The Group will implement strict cost control measures and accelerate the transformation of its business development model, shifting from traditional telecommunication services to higher-value information services[44][45] Financial Review Total revenue decreased by 5.2%, gross profit by 35.4%, and loss attributable to shareholders expanded by 29.5% due to a significant impairment loss on trade receivables - Revenue decreased by 5.2% to approximately HKD 122 million, primarily due to reduced revenue from telecommunication services and distribution business in Hong Kong[47] - Gross profit decreased by 35.4% to approximately HKD 1.059 million, mainly due to a deteriorating gross margin in Hong Kong's distribution business and telecommunication services[47] - Administrative and other operating expenses increased by 18.4%, primarily due to an impairment loss on trade receivables of approximately HKD 3.198 million recorded in the current period, with no such expense in the prior period[50] - Loss attributable to equity holders of the Company increased by 29.5% to approximately HKD 13.356 million, mainly due to a significant increase in impairment loss on trade receivables[51] Other Information This section covers the full utilization of IPO proceeds, details directors' and major shareholders' interests, and addresses potential competing interests with a non-competition undertaking Use of Proceeds from Initial Public Offering Approximately HKD 69.2 million from the 2010 IPO has been fully utilized, with some reallocations to overseas distribution businesses - Approximately HKD 69.2 million from the initial public offering proceeds had been fully utilized as of September 30, 2022[53] - According to announcements in 2018 and 2021, the use of a portion of the unutilized net proceeds was changed and reallocated to businesses such as overseas distribution of mobile phones and equipment[53][54] Directors' and Major Shareholders' Interests Chairman Mr. Li Kin Shing and his spouse hold approximately 59.23% equity, with New Everich Holdings Limited as the major controlling shareholder Major Shareholder Holdings (As of September 30, 2022) | Shareholder Name | Nature of Interest | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Li Kin Shing | Interest in controlled corporation and beneficial owner | 109,500,000 | 59.23% | | New Everich Holdings Limited | Beneficial owner | 104,437,500 | 56.49% | | Ms. Kwok King Wah | Interest in controlled corporation and spouse's interest | 109,500,000 | 59.23% | Competing Interests Potential competition from controlling shareholders' RF-SIM businesses outside Hong Kong and Macau is mitigated by a non-competition undertaking - Direct Telecom Limited and Shing Wah Telecom Limited, controlled by controlling shareholder Mr. Li Kin Shing and his spouse, whose businesses involve RF-SIM franchises in markets outside China (including Hong Kong and Macau), may have competing interests with the Group's business[75][76] - To avoid conflicts of interest, the controlling shareholders have signed a non-competition undertaking deed, pledging not to compete with the Group's RF-SIM business in Hong Kong and Macau, and to offer relevant business opportunities to the company first[78]