Financial Performance - The group recorded revenue of approximately HKD 151,976,000 for the year ended December 31, 2022, representing an increase of about 1.1% compared to the previous year[9]. - The loss attributable to equity shareholders decreased by approximately 13.3% to about HKD 12,317,000, compared to a loss of approximately HKD 14,205,000 in the previous year[9]. - Revenue from telecommunications services significantly decreased by approximately 76.4% to about HKD 2,619,000, down from approximately HKD 11,096,000 in the previous year[10]. - The distribution business generated revenue of approximately HKD 149,357,000, an increase of about 7.3% from approximately HKD 139,175,000 in the previous year[10]. - Revenue from telecommunications services decreased by approximately 19.4% to about HKD 2,564,000 compared to the previous year, with a reduction of approximately HKD 3,182,000[17]. - The distribution business generated revenue of approximately HKD 83,114,000, a decrease of about 11.2% from approximately HKD 93,607,000 in the previous year[20]. - Revenue from mobile and data recharge services in China was zero, down from approximately HKD 7,851,000 in the previous year due to intense competition and market challenges[22]. - Revenue from mobile phone and electronic product distribution in China increased approximately 3.5 times to about HKD 12,140,000, compared to approximately HKD 2,682,000 in the previous year[23]. - Revenue from mobile and data recharge distribution in Singapore increased by approximately 26.2% to about HKD 54,103,000, up from approximately HKD 42,886,000 in the previous year[26]. - The group's revenue for the year ended December 31, 2022, was approximately HKD 151,976,000, an increase of about 1.1% from HKD 150,271,000 in the previous year[33]. - The revenue from telecommunications services and distribution was approximately HKD 2,619,000 and HKD 149,357,000, accounting for 1.7% and 98.3% of total revenue, respectively[33]. - The group's gross profit increased by approximately 36.0% to about HKD 4,171,000, compared to HKD 3,068,000 in the previous year, mainly due to improved gross margins in distribution business in China[37]. - Other income for the year was approximately HKD 309,000, a 55.3% increase from HKD 199,000 in the previous year, primarily due to a one-time wage subsidy from the Hong Kong government[38]. - The group's administrative and other operating expenses decreased by approximately 4.6% to about HKD 17,021,000 from HKD 17,845,000 in the previous year[40]. Business Outlook and Strategy - The company anticipates a gradual recovery in the operating environment as travel demand rebounds following the easing of COVID-19 restrictions[11]. - The group maintains a cautiously optimistic outlook for medium to long-term business development, expecting increased customer usage of roaming products and services[11]. - The company plans to continue focusing on Mobility as a Service (MaaS) and is actively seeking partnerships in the Greater Bay Area and Southeast Asia to provide mobile communication services[14]. - The company is actively seeking distributors to expand overseas markets and enhance competitiveness by lowering the prices of prepaid products[18]. - The company plans to continue investing resources to increase the variety of mobile phones and electronic products offered, aiming to broaden revenue sources and improve business performance[20]. - The company is optimistic about the recovery of the tourism industry and expects to reintroduce roaming products and services to the market as travel demand rebounds[27]. - The company is preparing for a return to normal operations and is closely monitoring market developments to expand its business channels in various regions[27]. - The company aims to enhance its market position and increase revenue through the introduction of multiple prepaid products in a competitive telecommunications market[18]. - The group is actively exploring suitable business opportunities and investment prospects in the telecommunications sector while implementing strict cost control measures to improve business and financial performance[33]. - The group aims to accelerate its business development model by promoting synergy across various business segments, focusing on Mobility as a Service (MaaS) to extend its services into higher-value information services[31]. Financial Position and Assets - As of December 31, 2022, the total equity attributable to equity holders was approximately HKD 40,993,000, a decrease from HKD 55,979,000 as of December 31, 2021[50]. - The group's current assets net value was approximately HKD 36,426,000 as of December 31, 2022, down from HKD 51,355,000 as of December 31, 2021, with cash and cash equivalents of about HKD 15,858,000 compared to HKD 29,524,000 in the previous year[51]. - The current ratio as of December 31, 2022, was 6.3 times, lower than 8.5 times as of December 31, 2021[51]. - The total employee compensation for 2022 was approximately HKD 4,480,000, a decrease from HKD 4,958,000 in 2021[61]. - The group had no significant acquisitions, disposals, or major investments during the review year[56]. - As of December 31, 2022, the group had no outstanding loans or borrowings, resulting in a capital debt ratio that was not applicable[50]. - The group had a performance guarantee deposit of HKD 200,000 as of December 31, 2022, which was the same as the previous year[53]. - The group employed 20 staff members as of December 31, 2022, down from 21 in the previous year[59]. - The group has no derivative instruments for hedging currency risks as of December 31, 2022[52]. Corporate Governance and Compliance - The board does not recommend the payment of a final dividend for the year ended December 31, 2022[88]. - The company confirmed compliance with the disclosure requirements of GEM Listing Rules[99]. - The company has established a remuneration committee to review the remuneration policies and arrangements for all directors and senior management based on the group's performance and market practices[116]. - No remuneration was paid to directors or the five highest-paid employees as an incentive to join the group or as bonuses or severance payments during the year ended December 31, 2022[117]. - The company has arranged suitable liability insurance policies for its directors and senior management[112]. - There were no major contracts entered into by the company or its subsidiaries with controlling shareholders related to the group's business during the review period[113]. - The company has maintained a public float of no less than 25% of the total issued share capital as of December 31, 2022[144]. - The company has adopted a corporate governance report in compliance with the GEM Listing Rules, ensuring high standards of corporate governance to protect shareholders' interests[147]. - The company has established a code of conduct for directors regarding securities trading, confirming compliance with the required standards[148]. - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with GEM listing rules[151]. - The company has implemented a mechanism to ensure independent opinions are provided to the board, which is reviewed annually by the board and the nomination committee[152]. - The roles of the chairman and the CEO are separated, with Li Jiancheng as chairman and Peng Guozhou as CEO, ensuring independence and accountability[162]. - The company has obtained annual independence confirmations from independent non-executive directors, affirming their compliance with GEM listing rules[151]. - The board meets at least four times a year to determine overall strategic direction and approve financial results[154]. - The company has established a non-competition agreement with its shareholders, prohibiting them from engaging in any competing business in Hong Kong and Macau related to the RF-SIM business[163]. - The company has provisions for shareholders to assist in acquiring business opportunities that may compete with the group, ensuring favorable terms for the company[170]. Risk Management and Sustainability - The group faces various financial risks, including credit risk, interest rate risk, foreign exchange risk, and liquidity risk, and regularly reviews its capital structure[80]. - The group is committed to environmental sustainability and has implemented various eco-friendly measures without receiving any complaints regarding environmental issues during the review period[63]. - The group is committed to environmental protection and requires suppliers to comply with relevant environmental regulations[83]. - The company implemented a whistleblowing policy to promote compliance and ethical conduct, with no significant fraud or misconduct reported affecting financial statements for the year ending December 31, 2022[195]. - The company has adopted an anti-corruption policy as part of its corporate governance framework, emphasizing integrity and ethical conduct in business operations[198]. - The anti-corruption policy includes specific behavioral guidelines for employees and business partners to combat corruption, reflecting the company's commitment to ethical business practices and compliance with applicable laws[198]. Shareholder Relations and Communication - The company maintains a shareholder communication policy to ensure timely access to comprehensive and equal information for shareholders and potential investors[200]. - The company believes that maintaining high transparency is key to strengthening investor relations, consistently disclosing company information to shareholders and investors[200].
直通电讯(08337) - 2022 - 年度财报