HKT(HK:06823)2024-04-02 08:45Revenue and Financial Performance - The total revenue for the company reached HKD 31.37 billion, with an EBITDA of HKD 13.4 billion and an adjusted free cash flow of HKD 5.798 billion[43]. - Total revenue (excluding mobile communication product sales) rose by 3% to HKD 31.370 billion, reflecting strong demand for digital transformation projects from enterprise and government clients[191]. - EBITDA increased by 3% to HKD 13.400 billion, with adjusted cash flow also rising by 3% to HKD 5.798 billion, despite financing costs increasing by 77% during the year[191]. - The profit attributable to unit holders increased by 2% to HKD 4.991 billion, with basic earnings per unit at HKD 0.6589[194]. - The final distribution per unit for the fiscal year is proposed at HKD 0.4444, leading to a total annual distribution of HKD 0.7649 per unit[194]. - Total revenue for 2023 increased by 1% to HKD 34,330 million compared to HKD 34,125 million in 2022[197]. - Adjusted cash flow for 2023 improved by 16% to HKD 7,663 million from HKD 6,613 million in 2022[198]. - Financing costs increased by 34% to HKD 2,134 million in 2023 compared to HKD 1,589 million in 2022[197]. Customer Growth and Service Expansion - The number of 5G customers reached nearly 1.4 million, accounting for 41% of postpaid customers and over 50% of csl and 1O1O customers[21]. - The customer base for 5G services reached nearly 1.4 million by the end of December 2023, representing 41% of the total postpaid customer base[190]. - The number of registered users on the DrGo telemedicine platform increased by 50%, with a total of 386,000 video consultations conducted[41]. - The Club membership program expanded to 3.85 million members, enhancing user engagement and brand awareness[43]. - The Tap & Go payment platform achieved 3.77 million accounts, facilitating cross-border retail payments between Hong Kong and Thailand[43]. - The number of postpaid users increased by 3% to 3,428 thousand in the second half of 2023 compared to 3,323 thousand in the same period of 2022[199]. - The number of installed pay TV users increased by 2% to 1,429 thousand in the second half of 2023 compared to 1,398 thousand in the same period of 2022[199]. Technological Advancements and Digital Transformation - The penetration rate of 5G customers in the postpaid segment increased to 41%, with the application of 5G standalone (SA) and mmWave technology during the National Day fireworks live broadcast[13]. - The company aims to support digital transformation across various industries by leveraging emerging technologies such as 5G, AI, IoT, and cloud computing[8]. - The company is prepared to adopt advanced technologies like generative AI to improve efficiency and service quality[17]. - The company is actively integrating advanced technologies such as AI and blockchain to enhance operational efficiency and market responsiveness[37]. - The company is driving digital transformation through the use of artificial intelligence tools to create sustainable future opportunities[176]. - The company has implemented a comprehensive risk management strategy to address technology risks, including cybersecurity threats, by establishing the Group Information and Cybersecurity Council (GICSC) to monitor all cybersecurity measures and investments[172]. Network and Service Infrastructure - The 10G broadband network currently covers over 2.4 million households, with the popular 2500M broadband service demonstrating strong demand for high-speed internet[13]. - The company completed the installation of dedicated fiber optic cables to remote areas, improving 5G reception and broadband speed for residents and businesses[25]. - The launch of 1O1O HOME in early 2024 marks a significant milestone, expanding premium services across mobile, broadband, pay TV, and smart home offerings[13]. - The company is committed to improving network access in remote areas, evidenced by the installation of fiber cables on Lamma Island with government support[13]. Corporate Governance and Management - The company is focused on expanding its market presence and enhancing its service offerings through strategic appointments and governance improvements[66]. - The board includes independent directors with diverse backgrounds in finance, engineering, and telecommunications, enhancing strategic oversight[64]. - The company aims to enhance operational efficiency and financial performance through improved governance and strategic initiatives[66]. - The board of directors is committed to high standards of corporate governance, ensuring compliance with applicable laws and regulations[78]. - The company has adopted a code of conduct that covers areas such as corporate responsibility, equal opportunity, and workplace health and safety[79]. - The company has received confirmations of independence from all five independent non-executive directors as of the report date[101]. Risk Management and Compliance - The company maintains effective risk management and internal control systems to ensure compliance with applicable rules and regulations[91]. - The group has established a clear organizational structure for risk management, with responsibilities and reporting procedures defined[154]. - The internal audit department adopts a risk-based audit approach, covering major risks affecting operations and business units[158]. - The group has implemented multiple policies and procedures to enhance the effectiveness of enterprise risk management and internal control systems, requiring management to conduct evaluations at least annually[160]. - The audit committee regularly reviews risk management procedures and reports significant findings to the board[156]. - The group has developed appropriate policies and controls to protect assets and comply with relevant regulations[154]. Market Trends and Competitive Landscape - The competitive landscape has intensified in 2023 due to technological innovations such as artificial intelligence, prompting the company to leverage its strengths in product quality and market experience[176]. - The company is expanding its business portfolio into other industries such as fintech and health tech to mitigate potential financial and strategic risks due to geopolitical uncertainties and currency fluctuations[178]. - The risk level trends for 2023 indicate a stable risk level with some new risks emerging, while the company continues to monitor and adapt to changes in the political environment[178].