Financial Performance - Revenue decreased by 13% to HKD 5.809 billion, primarily due to weaker-than-expected sales performance in mobile and other products. However, core business segments, including fixed-line telecommunications services, technology solutions, and consulting services, showed stable growth of 1% year-on-year [4]. - EBITDA decreased by 4% to HKD 1.151 billion, mainly attributed to soft sales performance in mobile and other products, although operational improvements helped mitigate some of the decline in operating expenses [4]. - Net profit for the six-month period fell by 93% to HKD 2 million, a significant improvement compared to a net loss of HKD 1.267 billion in the previous fiscal year, primarily due to ongoing efforts to enhance core business performance and operational efficiency [4]. - Adjusted free cash flow decreased by 66% to HKD 124 million, impacted by the current high-interest environment, leading to a 51% increase in net interest payments during the review period [4]. - Total revenue for the six months ended February 29, 2024, was 5,809,091 thousand, a decrease of 13% compared to 6,707,216 thousand in the same period of 2023 [9]. - Adjusted net profit for the same period was 85,508 thousand, down 16% from 102,208 thousand in 2023 [9]. - The company reported a significant decline in mobile and other products revenue, which fell by 36% to 1,365,472 thousand from 2,122,087 thousand [9]. - The adjusted free cash flow decreased by 66% to 124,248 thousand compared to 367,648 thousand in the previous year [9]. - Profit attributable to equity shareholders decreased by 93% to HKD 2 million [16]. - Total comprehensive income for the six months ended February 29, 2024, was 6,379 thousand, a decrease of 71.2% from 22,148 thousand in the same period in 2023 [35]. Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.15 per share, down from HKD 0.20 per share in the previous year [4]. - The interim dividend for the first half of 2024 is set at HKD 0.15 per share, down from HKD 0.20 per share in February 2023 [26]. - The total proposed interim dividend amount for 2024 is 196,740 thousand, down from 262,320 thousand for the previous period [69]. - The approved and paid final dividend per ordinary share for the previous fiscal year was 20 cents, consistent with the previous period [70]. - The total amount for the approved final dividend for the previous fiscal year remains at 262,320 thousand [70]. Operational Developments - The company continues to transform its enterprise solutions business into an ICT industry leader, successfully attracting new customers in the public sector and large enterprises to increase market penetration [6]. - New innovative solutions such as Easy IT and AegisConnect have been well received by enterprise customers, enhancing the company's market position in the SME sector [6]. - The company launched a new travel lifestyle communication service brand, N mobile, complementing existing virtual mobile network operator services, providing comprehensive local and roaming communication options [7]. - A strategic alliance with Nokia has been established to pre-sell Hong Kong's first 25Gbps fiber network, expected to enhance market share and revenue from high-margin core services over the next 12 to 18 months [8]. - The company launched new IT solutions like OFFICE-IN-A-BOX and SHOP-IN-A-BOX to address specific industry challenges [14]. Cost Management and Efficiency - The company remains committed to prudent resource management and allocation to maximize growth returns while improving operational and capital expenditure efficiency [8]. - Network costs and sales costs decreased by 18% to HKD 3.772 billion, primarily due to lower inventory costs [15]. - Operating expenses decreased by 7% to HKD 1.628 billion, attributed to cost simplification and reduced depreciation [15]. - Financing costs increased by 24% to HKD 401 million, mainly due to rising bank loan interest rates [15]. - Capital expenditures decreased by 33% to (204,240) thousand from (304,234) thousand year-over-year [9]. Employee and Workforce Changes - The company experienced a 14% reduction in total full-time employees, decreasing from 4,428 to 4,159 [10]. - The group had 4,159 permanent full-time employees as of February 29, 2024, a decrease from 4,428 employees on August 31, 2023 [24]. Financial Position and Debt Management - As of February 29, 2024, the total cash and cash equivalents amounted to HKD 804 million, down from HKD 1,017 million on August 31, 2023 [18]. - Total debt as of February 29, 2024, was HKD 11,461 million, a decrease from HKD 11,589 million on August 31, 2023, resulting in a net debt level of HKD 10,657 million [18]. - The debt-to-equity ratio as of February 29, 2024, was 4.1 times, compared to 3.8 times on August 31, 2023 [18]. - The average cost of financing increased to 6.5% as of February 29, 2024, from 5.3% on August 31, 2023 [18]. - The company is considering refinancing options to improve its capital structure amid economic uncertainty [17]. Market and Revenue Insights - Enterprise solutions revenue declined by 4% to HKD 3.262 billion, while enterprise service revenue (excluding international telecom services) grew by 3% [13]. - Residential solutions revenue slightly decreased by 1% to HKD 1.182 billion, with a focus on enhancing partnerships to improve service offerings [14]. - Average revenue per user (ARPU) for residential services increased by 1% to HKD 181 [15]. - The group's revenue from telecommunications services for the six months ended February 29, 2024, was HKD 2,902,869, a decrease of 4.1% compared to HKD 3,027,861 for the same period in 2023 [47]. - Revenue from product sales for the same period was HKD 2,317,164, down 26.7% from HKD 3,161,818 in 2023 [47]. - The contribution of a single customer accounted for 22.5% of the total revenue for the group during the six months ended February 29, 2024 [49]. Compliance and Governance - The audit committee has reviewed the unaudited interim results for the first half of 2024, ensuring compliance with accounting principles and internal controls [29]. - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange regulations during the first half of 2024 [30]. - No significant events occurred after the reporting period [30]. - The interim report for the first half of 2024 will be published on the Hong Kong Stock Exchange and the company's website [30].
香港宽频(01310) - 2024 - 中期业绩