STOCK CODE:1883
ABOUT US
CITIC Telecom International Holdings Limited (the "Company", and together with its subsidiaries the "Group") was established in 1997 in Hong Kong and was listed on The Stock Exchange of Hong Kong Limited on 3 April 2007. The Group is an internet-oriented telecommunications enterprise providing comprehensive services.
T h e C o m p a n y ' s s e r v i c e s c o v e r i n t e r n a t i o n a l telecommunications services, providing mobile international roaming, international voice, international messaging, international data and international value-added telecommunications services, etc. to global carriers (including mobile operators, fixed line operators, virtual network operators, internet operators and OTT operators). The Company is one of the largest telecommunications hubs in Asia Pacific, with "DataMall 自由行", the world's first mobile trading platform and SIMN as our self- developed products. The Company owns the whole CITIC Telecom Tower (with a floor area of approximately 340,000 sq. ft.) and has established two large-scale data centres in Hong Kong.
The Company's wholly-owned subsidiary, Acclivis Technologies and Solutions Pte. Ltd. ("Acclivis"), is based in Singapore with businesses in Malaysia, Indonesia, Thailand and Philippines, etc. As one of the leading IT services providers in the region, Acclivis is the trusted advisor to government and enterprise to deliver digital transformation projects and smart solutions that harness our end-to-end ICT capabilities, with focus on cloud solutions, managed services and enterprise connectivity. Acclivis also owns the reputable internet service brand "Pacific Internet" in Singapore, Thailand, Indonesia, Philippines and Malaysia, and has established data centres and cloud computing centres across key cities in Southeast Asia.
Through its wholly-ownedsubsidiary, CITICTelecom International CPC Limited ("CPC"), the Groupprovides one-stopICT solutions to multinational and business enterprises, including private network solutions, EPL, SD-WAN, internet access, cloud computing,information
security, cloud data centre and a series of value-added services, etc. CPC is one of the most trusted partners of leading multinational and business enterprises in the Asia- Pacific region. CPC has gained a foothold in the Chinese mainland market through its subsidiary, China Enterprise ICT Solutions Limited ("CEC"), providing comprehensive ICT services for sizable multinational and business enterprises in Chinese mainland. CEC possesses various nationwide licenses in value-added telecommunications services in Chinese mainland, including nationwide Ethernet VPN, and has established cloud data centres in various cities such as Beijing, Shanghai and Guangzhou.
The Group holds 99% equity interest in Companhia de Telecomunicações de Macau, S.A.R.L. ("CTM"). CTM is one of the leading integrated telecommunications services providers in Macau, and is the only full telecommunications services provider in Macau (including mobile, internet, fixed line, data centre, enterprise ICT and international telecommunications services), as well as the major smart city operator of "Digital Macau". As a market leader, CTM has long provided quality telecommunications and ICT services to the residents, government and enterprises of Macau, and plays an important role in the ongoing development of Macau.
"Wisdom and Integrity for Fostering Prosperity" is the core value of the Group. The Group has established branch organisations in 22 countries and regions with more than 2,500 employees and almost 170 PoPs globally. The Group's business covers 160 countries and regions, and connects to over 600 operators in the world and serves over 3,000 MNCs and 40,000 local enterprises. The Group has R&D teams in various cities including Hong Kong, Macau, Zhuhai, Chengdu, etc. The Group has a number of ISO quality and network security accreditations, and also received awards and commendations from multiple organisations in recognition of caring to employees and environment for years.
CITIC Group Corporation, a large multinational conglomerate headquartered in China, is the ultimate holding company of the Company.
VISION
To become an internet-oriented telecommunications company; enabling connections anytime and anywhere, among people, among things, and among each other; enhancing the driving force for the advancement of society, development of enterprises and a higher quality of life.
MISSION
- Rooted in Chinese mainland market, taking Hong Kong and Macau as the base and connection, providing communications and ICT services with global coverage.
- Customer-oriented,with an acute observation of their needs, continuing to generate new value for our customers.
- Market-orientedand innovative, continuing to increase the Company's competitiveness.
- With value creation as our goal, providing sustainable return for our shareholders.
CONTENTS
Milestones | 2 | ||||||||||||||||||||||
Financial Highlights | 4 | ||||||||||||||||||||||
Chairman's Statement | 6 | ||||||||||||||||||||||
Financial Review | 14 | ||||||||||||||||||||||
Human Resources | 27 | ||||||||||||||||||||||
Condensed Interim Financial Report | 28 | ||||||||||||||||||||||
Consolidated Income Statement | 29 | ||||||||||||||||||||||
Consolidated Statement of | |||||||||||||||||||||||
Comprehensive Income | 30 | ||||||||||||||||||||||
Consolidated Statement of | |||||||||||||||||||||||
Financial Position | 31 | ||||||||||||||||||||||
Consolidated Statement of | |||||||||||||||||||||||
Changes in Equity | 33 | ||||||||||||||||||||||
Consolidated Cash Flow Statement | 34 | ||||||||||||||||||||||
Notes to the Unaudited Condensed | |||||||||||||||||||||||
Interim Financial Report | 35 | ||||||||||||||||||||||
Report on Review of Condensed Interim | |||||||||||||||||||||||
Financial Report | 53 | ||||||||||||||||||||||
Statutory Disclosure | 54 | ||||||||||||||||||||||
Corporate Information | 60 | ||||||||||||||||||||||
MILESTONES
Month | Events | |
January 2024 | • | China Enterprise ICT Solutions Limited ("CEC") won the "Energy Supply Chain - |
Digitalization Pioneer Award" jointly issued by the "Energy" Magazine and the Energy | ||
Enterprise Materials Procurement Supply Chain Development Alliance | ||
February 2024 | • | CEC received the Honorary Credential of "2023 Digitalization Service Innovation |
Leadership Award" issued by the Association of Chief Information Officers of Anhui | ||
Province | ||
• | Acclivis Technologies and Solutions Pte. Ltd ("Acclivis") was awarded the "2023 | |
Top Emerging Partner" by Tech Data (Singapore) Pte Ltd, one of the world's largest | ||
distributors of Information Technology products and services | ||
March 2024 | • | CITIC Telecom International Limited ("CITIC Telecom International") signed an agreement |
to join the GSMA Open Gateway initiative as a significant partner of GSMA in the Asia- | ||
Pacific region. Further enhanced platform capabilities to serve the development of the | ||
digital economy | ||
• | Companhia de Telecomunicações de Macau, S.A.R.L. ("CTM") and a business partner | |
signed a 5.5G Memorandum of Understanding to carry out in-depth cooperation in the | ||
field of 5.5G deployment, applications and the constructions of ecosystem, aiming to | ||
accelerate the development of "Digital Macau" smart city initiative | ||
• | CTM and Baidu signed the "Cooperation Agreement for the City Digital Economy (Macau) | |
Innovation Center" for introducing Baidu PaddlePaddle AI platform into Macau | ||
April 2024 | • | CITIC Telecom International CPC Limited ("CPC") became a Strategic Partner with |
Broadcom Inc. and listed as New VMware Cloud Service Provider (VCSP) - Pinnacle | ||
Tier Partner in the Broadcom Advantage Partner Program for multiple regions, including | ||
Hong Kong, Singapore and Japan, to help mutual enterprise customers to innovate by | ||
adopting VMware Cloud Foundation (VCF) as their private cloud infrastructure | ||
• | CPC's Research and Development team won the second prize in Innovation Application | |
Challenge with its "AIGC-Blockchain Integrated Solutions" in "XuperCore Open Source | ||
Blockchain Innovation Competition" which jointly organised by OpenAtom Foundation, | ||
Industry and Information Technology Department of Jiangsu and Baidu Online Network | ||
Technology (Beijing) Co., Ltd. | ||
• | CPC's "AI Databank" won the "CW Innovation Awards APAC 2024" organised by | |
Computer Weekly | ||
• | CEC's TrustCSI Managed Information Security Services won the "2023 Outstanding | |
Recommended Product for Intelligent Manufacturing" issued by e-works | ||
• | CEC won the "2023 Outstanding Supplier of Network Security" issued by e-works | |
• | CTM took the lead in applying 5.5G multi-network convergence technology, the world's | |
first use of SRv6 technology to provide mobile leased lines as backup for fixed leased | ||
line service, during the "6th Ministerial Conference of the Forum for Economic and Trade | ||
Co-operation between China and Portuguese-speaking Countries (Macau)" to ensure | ||
security of communications and network services | ||
2 CITIC Telecom International Holdings Limited | Interim Report 2024
MILESTONES
Month | Events | |
May 2024 | • | CPC's TrustCSI™ Managed Security Services (MSS) won the award in the "Managed |
Security Service" category and CPC is also the winner in the "Most Innovative | ||
Cybersecurity Company" category in the "2024 Cybersecurity Excellence Awards" | ||
organised by Cybersecurity Insiders | ||
• | CPC received the "Distinguished Enterprise Cybersecurity Provider" in the "Corporate | |
Brand Awards of Excellence 2024" organised by Hong Kong Economic Journal. It is the | ||
8th consecutive year that CPC has won the award | ||
• | CEC has been selected as one of the constituents in the "China Network Security | |
Industry Overview (11th Edition)" issued by AQNIU in "Network and Communication | ||
Security - Communication Transmission Security", "Network and Communication | ||
Security - SASE/SSE" and "Network Security Services - Security Operations & | ||
Maintenance and Managed Services" | ||
• | CTM's "5G Cross Regional Private Network Solution" won the "Innovation Award" issued | |
by the International Association of Portuguese-Speaking Communications | ||
June 2024 | • | CITIC Telecom International Holdings Limited (the "Company") won the "Best Innovative |
Solutions Partner Award - Technological Development" from a China operator. It is the | ||
17th consecutive year that the Company has won the award | ||
• | CITIC Telecom International won first prize in the GSMA Open Gateway Hackathon and | |
demonstrated its innovation capability and technological superiority in this field | ||
• | CPC received the "Cloud Service Innovator of the Year 2024" at the "Datacloud Global | |
Awards 2024" organised by the BroadGroup | ||
• | CEC won the "Best Digital Solution Service Provider" jointly issued by the China | |
Intelligent Manufacturing CIO Summit and Qinzhe Culture Communication (Shanghai) | ||
Co., Ltd. | ||
• | CEC won the "2023 Premier Digital Transformation Solution Provider" in the "Gold | |
Excellence Award" jointly issued by CIO TIMES and New Infrastructure Innovation | ||
Research Institute | ||
• | CEC won the "CIO Preferred Digital Service Provider" issued by CIO Association of | |
Guangdong | ||
• | At the 2024 Mobile World Congress held in Shanghai, CTM signed a Memorandum of | |
Understanding with GSMA to join and become a member of Open Gateway Initiative, | ||
working together with global operators and technology pioneers to accelerate the | ||
development of global digital services and applications | ||
• | CTM's Airport O&M Division won "Gold Award for the International Management | |
Certification Recognition for Macau Enterprises" issued by Macau Productivity and | ||
Technology Transfer Center | ||
• | CTM was awarded the "Best Network and Resources Partner Award - Global Roaming" | |
issued by a China operator | ||
CITIC Telecom International Holdings Limited | Interim Report 2024 | 3 |
FINANCIAL HIGHLIGHTS
Half year ended 30 June | |||
In HK$ million | 2024 | 2023 | |
Revenue | |||
Revenue from telecommunications services | 4,160 | 4,690 | Decrease 11.3% |
Sales of mobile handsets and equipment | 729 | 636 | Increase 14.6% |
4,889 | 5,326 | Decrease 8.2% | |
Profit attributable to equity shareholders of | |||
the Company | 455 | 721 | Decrease 36.9% |
EBITDA1 | 1,038 | 1,448 | Decrease 28.3% |
Earnings per share (HK cents) | |||
Basic | 12.3 | 19.5 | Decrease 36.9% |
Diluted | 12.3 | 19.5 | Decrease 36.9% |
Dividend per share (HK cents) | |||
Interim dividend | 6.0 | 6.0 | Same level as last period |
1 EBITDA represents earnings before interest, taxes, depreciation and amortisation.
Profit attributable to equity shareholders of the Company
HK$ million
1,0021,023
1,191
1,076
1,231
721
455
2019 | 2020 | 2021 | 2022 | 2023 | 1-6/2023 | 1-6/2024 |
4 CITIC Telecom International Holdings Limited | Interim Report 2024
FINANCIAL HIGHLIGHTS
30 June | 31 December | ||
In HK$ million | 2024 | 2023 | |
Total assets | 17,074 | 17,363 | Decrease 1.7% |
Total equity attributable to equity shareholders of | |||
the Company | 10,489 | 10,756 | Decrease 2.5% |
Total debt2 | 3,924 | 3,934 | Decrease 0.3% |
Less: Cash and deposits | (1,561) | (1,726) | Decrease 9.6% |
Net debt | 2,363 | 2,208 | Increase 7.0% |
Net gearing ratio3 | 18% | 17% | Increase 1.0% |
2
3
Total debt includes current and non-current bank and other borrowings.
Net debt
Net gearing ratio = Total capital x 100%
Total capital = Total equity attributable to equity shareholders of the Company + Net debt
Dividends payable to equity shareholders of the Company attributable to the year/interim period
HK$ million
733
905936
829
772
222222
2019 | 2020 | 2021 | 2022 | 2023 | 1-6/2023 | 1-6/2024 |
Note: The interim dividend payable for the year ending 31 December 2024 was based on the number of shares in issue as at 30 June 2024, which may differ from the number of shares at the closing date of the register of members.
CITIC Telecom International Holdings Limited | Interim Report 2024 | 5 |
CHAIRMAN'S STATEMENT
Dear Shareholders,
I am pleased to announce the operating and financial results of CITIC Telecom International Holdings Limited (the "Company", and together with its subsidiaries the "Group") for the first half of 2024.
In response to changes in various external factors, some customers made corresponding adjustments to their businesses since the second half of 2023. In the first half of 2024, there was a significant year-on-year decrease in revenue from messaging services in international telecommunications services, leading to a decrease in profit attributable to equity shareholders of the Company. In view of this, while the Company continues to consolidate its traditional telecommunications business, it is striving to seize the opportunity arising from the in-depth integration of the real economy and the digital economy driven by the next generation reform in information technology, deepen change and innovation, and facilitate business transformation and development through digitalisation and intelligentisation, so as to alleviate the impact.
6 CITIC Telecom International Holdings Limited | Interim Report 2024
CHAIRMAN'S STATEMENT
- FINANCIAL RESULTS
For the first half of 2024, total revenue of the Group amounted to HK$4,889 million, decreasing by 8.2% when compared to the corresponding period of the previous year; and the revenue from its principal business of telecommunications services amounted to HK$4,160 million, decreasing by 11.3% when compared to the corresponding period of the previous year.
Profit attributable to equity shareholders of the Company was HK$455 million, decreasing by 36.9% as compared to the corresponding period of the previous year. Excluding the effect of investment property revaluation, there would have been a decrease of 36.4% as compared to the corresponding period of the previous year.
Basic earnings per share for the first half of the year amounted to HK12.3 cents, representing a 36.9% decrease as compared to the corresponding period of the previous year.
The Board declared an interim dividend of HK6.0 cents per share for 2024, which is in line with corresponding period for the previous year.
- BUSINESS REVIEW
In response to the challenges, the Group has expedited its digital transformation, striving to improve capabilities in product R&D and innovation, and enrich its product portfolio. Also, the Group has made efforts to sustain its competitive edge in core businesses, optimise its business structure, and foster the growth of emerging businesses. During the first half of the year, the Group's revenue from mobile services amounted to HK$510 million, representing a year-on-year increase of 11.6%; revenue from internet services amounted to HK$737 million, representing a year-on-year increase of 4.5%; and enterprise solutions revenue was HK$1,608 million, representing a year-on- year increase of 6.8%, alleviating the downward pressure in revenue from international telecommunications services and demonstrating the Company's strong business resilience and growth potential.
Consolidating the scale advantages of "5G+Broadband", focusing on user value and technology upgrade
Driven by 5G, Companhia de Telecomunicações de Macau, S.A.R.L. ("CTM"), the Group's subsidiary, continued to capture more individual mobile users. As at the end of June 2024, CTM's share of the Macau mobile market reached 50.0%, firmly ranking first in the Macau market. The number of 5G users exceeded 620,000, with a penetration rate of 87.9%. In July 2024, CTM launched 5.5G commercial services, propelling Macau into the "5.5G Era" and making Macau become one of the first 5.5G commercialised cities in the world.
As at the end of June 2024, CTM launched bilateral 5G roaming services with 140 overseas network operators (covering 104 countries/regions), bilateral 4G roaming services with 392 overseas network operators (covering 221 countries/regions) and bilateral VoLTE roaming services with 39 overseas network operators (covering 44 countries/regions). By virtue of its high-quality roaming services, CTM serves as a source of assurance, facilitating Macau citizens' travel abroad and attracting visitors from all over the world to Macau.
CITIC Telecom International Holdings Limited | Interim Report 2024 | 7 |
CHAIRMAN'S STATEMENT
As for the internet business, CTM has been constantly promoting customer service upgrades with FTTR (Fiber- to-the-room) solutions. As at the end of June 2024, CTM maintained its top ranking in Macau's broadband services with approximately a 97.0% market share. According to the broadband network test report published by an international website cable.co.uk in July 2024, Macau ranked third in the world in terms of average fixed broadband downloading speed at the rate of 234.74Mbps.
Expanding and upgrading smart application scenarios to promote the development of smart city in Macau
CTM has fully committed to promoting the realisation of "Digital Macau" smart city development vision by leveraging the resource advantages offered by the "5G+ cloud network" to create smart application scenarios and solutions with rich variety, complete functions and competitive power, empowering customers from various sectors such as government affairs, enterprises, education, healthcare, and finance in pursuit of digitalisation upgrades.
In the first half of 2024, CTM launched "Dr. Easy", the one- stop smart healthcare solutions, for medical institutions, to promote the development of smart healthcare in Macau. In the field of smart education, CTM and Pui Ching Middle School Macau have entered a strategic cooperation to jointly build a leading smart campus, which comprehensively strengthens the information and network security of the school, enabling smart campus operation and AI teaching. By the end of June 2024, CTM has launched a total of 9 5G private network solutions and implemented 13 smart application scenarios, continuously contributing to the development of Macau's smart city. CTM has also actively deployed 50G PON, the next- generation optical network access technology, to support Macau's transition to the "10-Giga City" era and contribute to the high-quality development of Macau's digital economy.
Leveraging our position as a hub for international telecommunications services and expanding enterprise customers through changing existing sales model
The Group actively optimised the sales model of messaging services. While continuing to carry out the "wholesale" business, the Group introduced the "B2B direct sales" model to unleash the potential of the Group's internal enterprise customers, so that a wider range of customer groups can be reached and served more directly. Furthermore, the Group enhanced its platform capabilities through the use of various communication tools including SMS, MMS, RCS, WhatsApp Business, video messaging, 5G messages, etc., to meet the diverse demand of message delivery from customers in different scenarios, thereby enhancing the competitiveness of our products.
Facilitating the integration of "Cloud, Network, Intelligence and Security" and enhancing competitiveness by diversified products
CITIC Telecom International CPC Limited ("CPC"), the Group's subsidiary, provided customers with highly- integrated, flexible and efficient services by integrating existing network products with security services in an innovative way to improve the cyber security and operational efficiency of its customers' businesses. CPC facilitated the rapid development of new businesses and developed diversified revenue streams through cross- selling of "Cloud, Network, Intelligence and Security" products to customers.
Focusing on the strategy of "ICT - MiiND™", CPC integrates core technologies such as Large Language Model (LLM), AI and data algorithm platforms to enhance the intelligent and automation capabilities of existing core products and thus creates differentiated competitive advantages. By virtue of years of technology accumulation, CPC has developed an AI service platform to provide enterprise customers with comprehensive open services for data processing and model development, helping enterprises to efficiently train and develop AI models.
8 CITIC Telecom International Holdings Limited | Interim Report 2024