Financial Performance - Total revenue for the six months ended February 28, 2023, was HKD 6,707,216, a decrease of 1.4% from HKD 6,803,050 in the same period last year[17]. - The adjusted net profit for the period was HKD 102,208, down 78.7% from HKD 479,790 year-on-year[17]. - The adjusted free cash flow for the period was HKD 367,648, a significant decrease from HKD 715,990 in the previous year[17]. - The company reported a 92% decline in profit for the period, amounting to HKD 23,238 compared to HKD 304,330 in the prior year[17]. - For the six months ended February 28, 2023, revenue decreased by 1% to HKD 67.07 billion, adjusted EBITDA decreased by 6% to HKD 11.96 billion, and adjusted free cash flow decreased by 49% to HKD 3.68 billion[22]. - The company reported a profit before tax of HKD 11,042 for the six months ended February 28, 2023, down from HKD 384,687 in the previous year[149]. - The company’s external customer reportable segment profit was HKD 1,132,008, a decrease of 13.2% from HKD 1,304,642[149]. - The company recorded a financing cost of HKD 324,445, significantly higher than HKD 106,420 in the previous year[149]. - The company’s total product revenue was HKD 3,161,818, down from HKD 3,287,782, a decrease of 3.8%[143]. Revenue Segments - The corporate solutions segment generated revenue of HKD 2,348,457, an increase of 2.5% from HKD 2,290,870 year-on-year[17]. - The mobile and other products segment saw revenue rise to HKD 2,122,087, up 6.5% from HKD 1,992,865 in the previous year[17]. - Enterprise solutions revenue increased by 3% to HKD 23.48 billion, primarily due to an increase in wholesale IDD revenue[22]. - Residential solutions revenue slightly decreased by HKD 27 million or 2% to HKD 11.97 billion amid intense market competition[22]. - Fixed telecommunications network services revenue was HKD 2,326,218, slightly up from HKD 2,322,403, reflecting a growth of 0.03%[143]. - International telecommunications services revenue increased by 17.5% to HKD 519,777 from HKD 442,584 year-on-year[143]. Cost and Expenses - Financing costs increased by 205% year-on-year to HKD 3.24 billion, mainly due to changes in fair value of interest rate swaps and increased interest expenses[22]. - Adjusted net profit decreased by 79% to HKD 1.02 billion, primarily due to increased financing costs and losses from joint ventures[23]. - The company incurred advertising and marketing expenses of HKD 186,987,000 for the six months ended February 28, 2023, compared to HKD 172,472,000 in the previous year, representing an increase of approximately 8.8%[151]. - The company’s depreciation expense for property, plant, and equipment was HKD 368,175,000 for the six months ended February 28, 2023, compared to HKD 355,454,000 in the same period of 2022, indicating an increase of about 3.5%[153]. Employee and Talent Management - The total number of permanent full-time employees increased by 3% to 4,834[22]. - The company has 4,834 full-time employees as of February 28, 2023, a slight decrease from 4,864 employees on August 31, 2022[29]. - The company organized 8 different recruitment days in collaboration with various NGOs to enhance diversity in hiring[79]. - The overall employee satisfaction rate increased to 65%, a 7% rise from the previous survey conducted in December 2021[73]. - The company emphasizes a culture of lifelong learning, offering tailored training programs to support career development[75]. - During the reporting period, the company provided approximately 39,000 hours of training to ensure employees are equipped with necessary skills and knowledge[76]. Customer Experience and Service Quality - Customer service hotline achieved an average response rate of 89% during the reporting period[102]. - The average time from customer request to installation completion was 1.1 days, with 99.96% of repair appointments scheduled within two working days[100]. - Customer satisfaction score for residential service channels averaged 5.78 out of 6 during the reporting period[103]. - The company implemented a complaint management system to address unresolved cases, aiming to resolve complaints within six working days[104]. - The average customer satisfaction score during the reporting period was 5 out of 6[107]. ESG and Community Engagement - The company achieved an MSCI ESG rating upgrade to AAA, placing it among the top 9% of telecommunications companies globally[16]. - The company aims to enhance its corporate and residential customer ESG capabilities, which is expected to create more opportunities[15]. - The company is committed to continuous improvement and innovation in its service offerings to adapt to the competitive landscape[44]. - The company provided 500 free broadband internet connections for 24 months to underprivileged groups through partnerships with three social welfare organizations[90]. - A free cybersecurity risk assessment was conducted for 50 social welfare organizations, revealing that 32% faced medium to high risks of cyberattacks[87]. Network and Infrastructure Development - The company has invested hundreds of billions of HKD in network infrastructure since 1995, enhancing its competitive advantage in the ICT sector[6]. - The company aims to enhance its network infrastructure and service coverage to provide superior connectivity and value to customers[34]. - The company expanded its fiber network coverage by adding 30,186 residential units and 27 commercial buildings during the reporting period, bringing total coverage to approximately 2,543,000 households and over 8,000 commercial buildings[120]. - The company upgraded its GPON platform to enhance service sustainability and is developing XGS (10G) PON for new services[121]. Strategic Initiatives and Future Outlook - The company expects a J-shaped recovery trend to continue, with significant improvements anticipated in the second half of 2023 compared to the first half[24]. - The company aims to create a one-stop ecosystem for customers, allowing them to enjoy integrated billing benefits through a diverse range of services and products[45]. - The company is collaborating with OpenRice to enhance its O2O dining technology services, facilitating expansion into other Asia-Pacific markets, including Singapore and Japan[52]. - The company anticipates growth opportunities in mainland China following the lifting of COVID-19 restrictions, with plans to recruit new talent and establish offices in major cities[57]. Governance and Compliance - The company has established a strict policy regulating the collection, use, and management of customer data, ensuring confidentiality and compliance with privacy regulations[111]. - The company received a warning from the Hong Kong Privacy Commissioner in January 2023 regarding a privacy-related case and has taken necessary actions to prevent future occurrences[112]. - The company ensures that all marketing materials comply with relevant laws and regulations, with prior approval from legal and senior management teams[106]. - The company has implemented a supplier code of conduct since December 2020, ensuring compliance with governance, labor conditions, health and safety standards, and environmental protection[130].
香港宽频(01310) - 2023 - 中期财报