Financial Performance - The group recorded revenue of approximately HKD 150,555,000 for the year ended December 31, 2023, a decrease of about 0.9% compared to the previous year[7]. - The loss attributable to equity shareholders for the year was approximately HKD 9,935,000, a reduction of about 19.3% from the previous year's loss of HKD 12,317,000[7]. - Basic and diluted loss per share for the year was 5.37 HKD cents, compared to 6.66 HKD cents for the year ended December 31, 2022[7]. - Total revenue for the year ended December 31, 2023, was approximately HKD 150,555,000, a decrease of about 0.9% from HKD 151,976,000 in the previous year[26]. - The cost of sales for the year was approximately HKD 146,317,000, a decrease of about 1.0% from HKD 147,805,000 year-on-year[28]. - The group's gross profit increased by approximately 1.6% to about HKD 4,238,000 compared to approximately HKD 4,171,000 in the same period last year[30]. - Other income decreased by approximately 27.2% to about HKD 225,000 from approximately HKD 309,000 due to the absence of one-time government subsidies[31]. - Net other income increased approximately 4.1 times to about HKD 164,000 from approximately HKD 32,000, primarily due to increased foreign exchange gains[32]. - Administrative and other operating expenses decreased by approximately 13.5% to about HKD 14,729,000 from approximately HKD 17,021,000, mainly due to reduced operating lease expenses[33]. - Financial costs decreased by approximately 21.5% to about HKD 51,000 from approximately HKD 65,000, attributed to lower interest on lease liabilities[34]. Revenue Breakdown - Revenue from telecommunications services increased significantly by approximately 1.8 times to about HKD 7,365,000, compared to HKD 2,619,000 in the previous year[8]. - For the year ended December 31, 2023, revenue from telecommunications services was approximately HKD 7,318,000, an increase of about 190% compared to HKD 2,564,000 in the same period last year[14]. - Revenue from the distribution business decreased by approximately 4.1% to about HKD 143,190,000, down from HKD 149,357,000 in the previous year[8]. - The distribution business in Hong Kong generated revenue of approximately HKD 89,948,000, an increase of about 8.2% from HKD 83,114,000 year-on-year[17]. - Revenue from the distribution business in China decreased by approximately 21.4% to HKD 9,546,000, down from HKD 12,140,000 in the previous year[19]. - Revenue from mobile and data recharge distribution in Singapore decreased by approximately 19.2% to HKD 43,696,000, down from HKD 54,103,000 year-on-year[22]. Business Outlook and Strategy - The group is cautiously optimistic about medium to long-term business development, anticipating an increase in customer usage of roaming products and services as travel demand recovers[9]. - The group 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[11]. - The adjustment of COVID-19 measures by the Hong Kong government and the resumption of cross-border travel are expected to positively impact the group's roaming services[9]. - The company is actively seeking distributors to expand into overseas markets, aiming to provide lower-priced mobile data services to overseas travelers[14]. - The company plans to continue focusing on core telecommunications services while exploring other 5G business development opportunities[18]. - The company maintains a cautiously optimistic outlook for medium to long-term business development, closely monitoring market trends and expanding market channels[23]. - The company aims to transform its business development model to create new synergies across various business segments, focusing on Mobility as a Service (MaaS)[25]. Competition and Market Challenges - The group continues to face intense competition in the mobile communications sector, particularly regarding prepaid products and similar roaming offerings[13]. - The group faces significant competition in the market, leading to price pressures and potential loss of market share[58]. - The group has established long-term relationships with service providers to minimize disruptions in service[61]. Corporate Governance and Compliance - The company is committed to high standards of corporate governance and has adhered to the GEM Listing Rules Corporate Governance Code for the fiscal year ended December 31, 2023[137]. - The independent non-executive directors' independence has been confirmed and is in compliance with GEM Listing Rules as of the report date[141]. - The company has implemented a code of conduct for securities trading by directors, ensuring compliance with the required standards[138]. - The company has a robust risk management and internal control system in place, overseen by the board of directors[139]. - The company has adopted a training program to reinforce ethical and integrity standards among employees[137]. - The board is responsible for overseeing compliance with legal and regulatory requirements, as well as corporate governance policies[187]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ending December 31, 2023, and no dividend was paid for the year ending December 31, 2022[75]. - The total distributable reserves available to equity shareholders as of December 31, 2023, amounted to zero HKD, unchanged from the previous year[80]. - Shareholders can request a special general meeting if they hold at least 10% of the voting shares, with specific procedures outlined for such requests[197]. - Shareholders can submit inquiries to the board at any time, with a designated process for submitting proposals at the annual general meeting[199][200]. Employee and Management Information - The total employee compensation for 2023 was approximately HKD 4,552,000, compared to approximately HKD 4,480,000 in 2022[48]. - The company emphasizes the importance of employee development and regularly reviews compensation and benefits policies[73]. - The company has established a compensation committee to review the remuneration policies for all directors and senior management based on operational performance and market practices[103]. - The remuneration committee consists of one non-executive director and two independent non-executive directors, with the chairperson being an independent director[182]. Risk Management - The group is exposed to various financial risks, including credit risk, interest rate risk, and foreign exchange risk, with no current hedging policies in place for foreign exchange[66]. - The group emphasizes the importance of data security, as breaches could adversely affect its operations and reputation[65]. - The group recognizes the impact of macroeconomic conditions on its business, with global economic slowdowns potentially reducing demand for its services[67]. - The group relies on skilled management and technical personnel, with potential turnover posing risks to its operations[68]. Environmental and Social Responsibility - The group is committed to environmental sustainability, focusing on energy conservation and recycling initiatives[69].
直通电讯(08337) - 2023 - 年度财报