Revenue and Profitability - Revenue for the six months ended February 28, 2023, was HKD 6.707 billion, with a year-on-year growth rate of 2% excluding the sale of subsidiaries[4] - Revenue for the six months ending February 28, 2023, was HKD 6,707,216, a decrease of 1% compared to HKD 6,803,050 for the same period in 2022[18] - Adjusted net profit for the same period was HKD 102,208, down 79% from HKD 479,790 in the previous year[18] - The company reported a revenue decrease of 1% to HKD 6.707 billion for the first half of 2023[23] - Adjusted EBITDA decreased by 6% to HKD 1.196 billion[23] - Profit attributable to equity shareholders decreased by 92% to 23 million, reflecting a significant reduction in pre-tax profit[25] - Adjusted net profit decreased by 79% to 102 million, primarily due to increased financing costs and losses from joint ventures[25] - Basic earnings per share for the period were HKD 0.0618, compared to HKD 0.232 in the same period last year[51] Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.20 per share, down from HKD 0.40 per share in the same period last year[4] - The board has declared an interim dividend of HKD 0.20 per share for the first half of 2023, down from HKD 0.40 per share in the same period of 2022[42] - The company aims to distribute at least 75% of adjusted free cash flow as dividends, considering financial performance, investment needs, and market conditions[42] Financial Position and Cash Flow - The company reported a significant decline in free cash flow, which was HKD 367,648, down 49% from HKD 715,990 in the previous year[18] - Adjusted free cash flow fell by 49% to HKD 368 million[23] - As of February 28, 2023, total cash and cash equivalents amounted to 980 million, down from 1.129 billion on August 31, 2022[27] - The net debt level was 10.765 billion, with a debt-to-equity ratio of 2.5 times as of February 28, 2023[27] - The company reported a current liability exceeding current assets by approximately 285 million HKD, indicating potential liquidity concerns[57] - The company anticipates sufficient cash inflows from operations and existing bank financing capabilities to meet its obligations as they come due[57] Business Segments and Revenue Sources - The main business segments include fixed telecommunications services, international telecommunications services, mobile communications services, and system integration services[59] - Revenue is derived from providing services to residential and enterprise customers, with a focus on telecommunications and related products[60] - For the six months ended February 28, 2023, total revenue from telecommunications services was HKD 3,027,861, an increase from HKD 2,948,243 in the same period of 2022, representing a growth of approximately 2.8%[61] - International telecommunications services revenue increased to HKD 519,777, up 17.5% from HKD 442,584 in the previous year[61] - Revenue from mobile and other products rose to HKD 2,122,087, reflecting an increase of 6.5% compared to HKD 1,992,865 in the prior year[62] Operational Performance and Costs - Adjusted EBITDA was HKD 1.196 billion, representing a year-on-year decrease of 6%[4] - The company incurred financing costs of HKD 324,445, significantly higher than HKD 106,420 in the previous year[51] - Total operating expenses amounted to 1,746,248 thousand, down from 1,839,751 thousand, representing a decrease of about 5.1%[68] - The cost of goods sold was reported at 3,004,833 thousand, slightly down from 3,087,159 thousand, indicating a decrease of approximately 2.7%[71] Employee and Talent Management - The total number of full-time employees increased by 3% to 4,834[20] - The group has implemented four shareholding plans to attract and retain skilled talent, with the latest plan (Plan IV) adopted on October 21, 2021[39] - The group provides a comprehensive medical coverage and competitive retirement benefits plan for its employees[34] Market Strategy and Future Outlook - The strategy involves leveraging system integration to drive growth in the telecommunications business, positioning the company as a leader in the ICT industry[6] - The company aims to assist clients in planning their ICT budgets for the next three years, with SI expenditures typically 10 to 20 times higher than pure telecommunications spending[6] - The company plans to expand its telecommunications and technology services in regions including mainland China, Macau, Singapore, and Malaysia[65] - The company is focusing on enhancing its product offerings and technology solutions to drive future growth and market expansion[64] Governance and Compliance - The company has complied with all corporate governance codes as outlined in the listing rules during the first half of 2023[46] - The company’s external auditors have reviewed the interim financial results for the first half of 2023 in accordance with the relevant auditing standards[45]
香港宽频(01310) - 2023 - 中期业绩