HKT(HK:06823)2023-03-31 08:465G and Telecommunications Growth - 5G customers accounted for over 50% of postpaid customer base, indicating strong market readiness for smart city development [12] - The number of 5G mobile communication users surpassed 1 million, with postpaid customers accounting for 32% of the total, exceeding year-end targets and driving ARPU growth [18] - The company became the first operator to extend 5G coverage to the East Rail Line and provide comprehensive coverage along the MTR, enhancing user experience [20] - Hong Kong Telecom's 5G network coverage has expanded to the East Rail Line underwater section, making it the first mobile service operator to cover all MTR lines with 5G [54] - The company is focused on enhancing broadband service transmission speeds and improving mobile network coverage and speed [79] Revenue and Financial Performance - Total revenue for the year was HKD 30.501 billion, reflecting a 2% increase [45] - EBITDA totaled HKD 13.064 billion, marking a 3% growth [45] - For the year ended December 31, 2022, the service revenue of the mobile communications business increased by 2% to HKD 7.942 billion, driven by higher adoption of 5G services and an expanded postpaid customer base [196] - Total revenue (excluding mobile communication product sales) rose by 2% to HKD 30.501 billion, reflecting strong demand for reliable high-speed broadband services and digital transformation projects for enterprise customers [197] - EBITDA for the year increased by 3% to HKD 13.064 billion, supported by improved operational efficiency and a 12% reduction in operating costs [199] Digital Transformation and Innovation - The enterprise solutions division utilizes 5G technology to drive digital transformation across various industries, including aviation and real estate [13] - The digital investment business supports the digital economy through the Tap & Go mobile wallet, enhancing customer interaction and personalized experiences [14] - The company launched the metaverse virtual world "Futurera" in partnership with The Sandbox, featuring interactive games and training for Web3.0 technology [12] - The company established a metaverse classroom to prepare for future applications in Web 3.0, showcasing its commitment to innovation [196] - The company is exploring opportunities in the metaverse, partnering with The Sandbox to launch the Web3.0 virtual world Futurera, enhancing user engagement [19] Customer Engagement and Services - HKT Home offers comprehensive smart living solutions, enhancing user experience with high-speed broadband services like Wi-Fi 6E and fiber-to-the-room [13] - The DrGo telehealth platform expanded its services to include chronic disease prevention, alleviating pressure on the public healthcare system [14] - Tap & Go's customer spending surged by 55% year-on-year, with merchant transaction volume increasing by 68% [36] - The number of registered users for the health tech platform DrGo reached 352,000, with video consultation sessions increasing by 1,500% [37] - Now TV's advertising revenue increased by 52% in the second half of 2022, boosted by the FIFA World Cup Qatar 2022 and relaxed social distancing measures [26] Corporate Governance and Leadership - The company emphasizes the importance of corporate governance and compliance through its various committees led by experienced directors [73] - The board includes independent non-executive directors with significant backgrounds in finance and management, enhancing corporate governance [65] - The company has implemented a corporate governance code in compliance with the Hong Kong Stock Exchange listing rules, ensuring transparency and accountability [81][83] - The board's diverse expertise includes telecommunications, finance, and international business, which supports the company's growth strategy [70] - The company has established a systematic evaluation process for the board's performance, which includes self-assessment questionnaires filled out by all directors [106] Risk Management and Compliance - The company emphasizes a strong risk management culture to ensure informed decision-making processes [152] - The group conducts regular assessments of its risk management and internal control systems, with evaluations occurring at least annually [166] - The risk management framework is aligned with ISO 31000:2018 principles, guiding the overall approach to managing business and operational risks [164] - The company has implemented a "Know-Your-Transaction" framework to mitigate money laundering risks in cryptocurrency transactions [180] - The company has established a whistleblowing policy to address any misconduct transparently and efficiently [156] Strategic Partnerships and Alliances - The company has partnered with Mastercard to expand cooperation through the Priceless Planet Coalition to build sustainable smart cities [50] - HKT and New World Development formed a strategic alliance to accelerate digital transformation in the Guangdong-Hong Kong-Macao Greater Bay Area [54] - The company signed a USD 2 billion sustainable performance-linked loan to support climate change initiatives [39] - The company has a strategy to leverage internal knowledge and industry expertise for potential mergers or strategic investments in the telecommunications and technology markets [184] - The company has diversified its supply chain and collaborates with multiple service providers to reduce reliance on a single supplier [182]