|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
HK$000
|
|
|
HK$000
|
|
Profit attributable to equity shareholders
|
|
|
3,700,288
|
|
|
|
313,915
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
Number
|
|
|
Number
|
|
|
|
of shares
|
|
|
of shares
|
|
|
|
000
|
|
|
000
|
|
Issued ordinary shares at the beginning of the year
|
|
|
771,912
|
|
|
|
764,997
|
|
Effect of share options exercised
|
|
|
12,164
|
|
|
|
3,810
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares at the end of the year (basic)
|
|
|
784,076
|
|
|
|
768,807
|
|
Incremental shares from assumed exercise of share options
|
|
|
11,511
|
|
|
|
23,992
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares at the end of the year (diluted)
|
|
|
795,587
|
|
|
|
792,799
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
HK471.9 cents
|
|
|
|
HK40.8 cents
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
HK465.1 cents
|
|
|
|
HK39.6 cents
|
|
|
|
|
|
|
|
|
|
|
- 18 -
The
majority of the Groups accounts receivable are due within 30 days from the date of billings. Customers with receivable that are more than 3 months overdue are requested to settle all outstanding balance before further credit is granted.
The aging analysis of the accounts receivable is as follows:
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
HK$000
|
|
|
HK$000
|
|
Current30 days
|
|
|
573
|
|
|
|
44,949
|
|
3160 days
|
|
|
565
|
|
|
|
16,417
|
|
6190 days
|
|
|
94
|
|
|
|
6,861
|
|
Over 90 days
|
|
|
79
|
|
|
|
10,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,311
|
|
|
|
78,529
|
|
Less
: Allowance for doubtful debts
|
|
|
|
|
|
|
(6,530
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
1,311
|
|
|
|
71,999
|
|
|
|
|
|
|
|
|
|
|
The
aging analysis of the accounts payable is as follows:
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
HK$000
|
|
|
HK$000
|
|
Current 30 days
|
|
|
2,920
|
|
|
|
11,719
|
|
3160 days
|
|
|
315
|
|
|
|
245
|
|
6190 days
|
|
|
84
|
|
|
|
733
|
|
Over 90 days
|
|
|
2,052
|
|
|
|
4,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,371
|
|
|
|
17,419
|
|
|
|
|
|
|
|
|
|
|
- 19 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
|
|
|
Share
|
|
|
Share
|
|
|
Capital
|
|
|
redemption
|
|
|
Retained
|
|
|
Exchange
|
|
|
Revaluation
|
|
|
Other
|
|
|
|
|
|
controlling
|
|
|
Total
|
|
|
|
|
|
|
capital
|
|
|
premium
|
|
|
reserve
|
|
|
reserve
|
|
|
profits
|
|
|
reserve
|
|
|
reserve
|
|
|
reserve
|
|
|
Total
|
|
|
interest
|
|
|
equity
|
|
|
|
Note
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
|
HK$000
|
|
At 1 September 2011
|
|
|
|
|
|
|
77,191
|
|
|
|
1,083,495
|
|
|
|
23,759
|
|
|
|
7
|
|
|
|
607,783
|
|
|
|
5,146
|
|
|
|
|
|
|
|
|
|
|
|
1,797,381
|
|
|
|
|
|
|
|
1,797,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,700,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,700,288
|
|
|
|
(2,414
|
)
|
|
|
3,697,874
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,146
|
)
|
|
|
|
|
|
|
|
|
|
|
(5,146
|
)
|
|
|
|
|
|
|
(5,146
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,700,288
|
|
|
|
(5,146
|
)
|
|
|
|
|
|
|
|
|
|
|
3,695,142
|
|
|
|
(2,414
|
)
|
|
|
3,692,728
|
|
Final dividend paid in respect of previous year
|
|
|
8
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(115,901
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(115,901
|
)
|
|
|
|
|
|
|
(115,901
|
)
|
Special dividend paid in respect of current year
|
|
|
8
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,022,542
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,022,542
|
)
|
|
|
|
|
|
|
(2,022,542
|
)
|
Interim dividend paid in respect of current year
|
|
|
8
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(119,674
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(119,674
|
)
|
|
|
|
|
|
|
(119,674
|
)
|
Shares issued upon exercise of share option
|
|
|
|
|
|
|
3,711
|
|
|
|
104,510
|
|
|
|
(33,044
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,177
|
|
|
|
|
|
|
|
75,177
|
|
Equity settled share-based transactions
|
|
|
6
|
(d)
|
|
|
|
|
|
|
|
|
|
|
10,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,480
|
|
|
|
|
|
|
|
10,480
|
|
Share options lapsed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,195
|
)
|
|
|
|
|
|
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of investment properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
165,156
|
|
|
|
|
|
|
|
165,156
|
|
|
|
|
|
|
|
165,156
|
|
Contributions from non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,450
|
|
|
|
2,450
|
|
Acquisition of non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,826
|
)
|
|
|
(1,826
|
)
|
|
|
(36
|
)
|
|
|
(1,862
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 August 2012
|
|
|
|
|
|
|
80,902
|
|
|
|
1,188,005
|
|
|
|
|
|
|
|
7
|
|
|
|
2,051,149
|
|
|
|
|
|
|
|
165,156
|
|
|
|
(1,826
|
)
|
|
|
3,483,393
|
|
|
|
|
|
|
|
3,483,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 September 2010
|
|
|
|
|
|
|
76,500
|
|
|
|
1,074,997
|
|
|
|
21,064
|
|
|
|
7
|
|
|
|
513,208
|
|
|
|
2,763
|
|
|
|
|
|
|
|
|
|
|
|
1,688,539
|
|
|
|
|
|
|
|
1,688,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
313,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
313,915
|
|
|
|
|
|
|
|
313,915
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,383
|
|
|
|
|
|
|
|
|
|
|
|
2,383
|
|
|
|
|
|
|
|
2,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
313,915
|
|
|
|
2,383
|
|
|
|
|
|
|
|
|
|
|
|
316,298
|
|
|
|
|
|
|
|
316,298
|
|
Final dividend paid in respect of previous year
|
|
|
8
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(103,735
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(103,735
|
)
|
|
|
|
|
|
|
(103,735
|
)
|
Interim dividend paid in respect of current year
|
|
|
8
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(115,605
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(115,605
|
)
|
|
|
|
|
|
|
(115,605
|
)
|
Shares issued upon exercise of share option
|
|
|
|
|
|
|
691
|
|
|
|
8,498
|
|
|
|
(1,957
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,232
|
|
|
|
|
|
|
|
7,232
|
|
Equity settled share-based transactions
|
|
|
6
|
(d)
|
|
|
|
|
|
|
|
|
|
|
4,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,652
|
|
|
|
|
|
|
|
4,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 August 2011
|
|
|
|
|
|
|
77,191
|
|
|
|
1,083,495
|
|
|
|
23,759
|
|
|
|
7
|
|
|
|
607,783
|
|
|
|
5,146
|
|
|
|
|
|
|
|
|
|
|
|
1,797,381
|
|
|
|
|
|
|
|
1,797,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 20 -
BUSINESS REVIEW
FY2012 is an exciting and remarkable year for City Telecom, not only because we celebrated our 20th anniversary, it was also the turning point to begin a completely new era in the multimedia industry. On
30 May 2012, we completed the very substantial disposal transaction of the entire Telecom Business, including Fixed Telecommunications Network Services business (FTNS) and International Telecommunications business (IDD),
since then, the Multimedia Business becomes the principle focus of the Group, which includes the production, sales and distribution of Cantonese TV drama series, news programmes and other TV programmes. It will also include the offering of free TV
programming services in Hong Kong, subject to the grant of the domestic free television programme service licence by the Chief Executive in Council.
While our first 9 months financial results were mainly contributed by the Telecom Business, we have been actively building our foothold in the Multimedia Business in Hong Kong since FY2011. In FY2011
Chairmans Statement, our Chairman, Mr. Ricky Wong clearly stated our vision for this new business to unleash the creativity potential of drama production in Hong Kong, and to nurture hundreds of writers in the coming eight to
ten years, bringing Hong Kong back into the position of Asian drama production hub. With this clear direction in mind, we are running the talk now:
Reversing the Creative Direction
City Telecom is reputable in leading change
in an industry and in fighting the Goliath, and our management team is distinctive at execution to make our dream come true. All of these have been well proved in our 20-year history in the telecommunications industry. Now, we are stepping into a
new arena to drive for a revolution change here, our first change is to enable a much larger room for creativity and possibility which we consider as one of the key determining factors to encourage variety and to unleash the creativity
potential for drama production. In long run, we aim to prolong the creative period from approximately 3 months to approximately 6 months to further enhance the quality.
Strong Production Momentum
Since mid-2011, we embarked a large scale
head-hunting process to recruit the top tier talents in the multimedia industry from creative directors to post production professionals, we now have a professional team of more than 500 talents together with about 220 artistes.
All of us are gear-up in full speed to prepare for the battle since April 2012, we started to produce our weapons at present, we have completed shooting for 4 TV drama series with 4 others in progress (ranging from
1030 hours per series).
Our another focus is on infotainment and variety programmes we expect to produce a wide spectrum of
programmes with no boundary on subjects and locations, ranging from world class production, such as Challenge to execute impossible missions including chasing the hurricane in the United States, climbing into a live volcano in Vanuatu,
etc., and to programmes introducing domestic local culture, such as Secret of Food.
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Upon the disposal of the Telecom Business, the news production operation unit remained with the Group which
will continue to provide news content to the Telecom Business for their bbTV broadcasting use under a licensing arrangement. Once our broadcasting start, our news production operation unit will fully support the news programme production.
Apart from the above self-produced programmes, we also purchased popular and high quality contents from Japan, Korea and Mainland China
including TV drama series and cartoons. To adapt to local audiences, we maintain a professional dubbing team for the post production process, including dubbing to local language and subtitling. As of 31 August 2012, we have more than 850
episodes of purchased content in our library.
With the assumption that we can start broadcasting in the second half of 2013, we intend to
double our 2012 production output on TV drama series, and on infotainment and variety programmes in 2013.
Top Tier Hardware
We understand hardware is an inevitable component to link talents and creativity together for high quality output. Hence, we are committed
to invest resources to provide top tier facilities:
1.
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TV & Multimedia Production and Distribution Centre in Tseung Kwan O Industrial Estate (the Centre)
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After our ground breaking ceremony in February 2012, the Centre reached its milestone in October 2012 by completing the foundation work
and is now under the tendering stage on superstructural works. The Centre will possess gross floor area of approximately 500,000 sq. ft. and consists of 12 studios, including an 18,000 sq. ft. studio which is the largest in Hong Kong and smaller
studios with 3,000 sq. ft. each. Construction works are expected to be completed in FY2014 and the Centre will become our headquarter.
2.
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Hollywood movie graded production equipment
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While we mentioned we are aiming at quality production, we are the first in the Hong Kong free TV platform to use Hollywood movie graded ARRI cameras for TV drama series production. Moreover, according to
our plan, we will also have the post production facilities in the Centre to equip with pioneering technology, compatible for 3D, 4k and even 8k super-high standards. In short, our hardware would be future-proofed not only for todays
production.
Audience Engagement
City Telecom is well known to be a pioneer, and we are not going to position ourselves same as the incumbent our aim is clear to have our high quality production to go beyond the traditional
free TV platform. Nowadays, it is almost impossible to capture 100% of our audiences eyeballs back to the TV screen because of the competition from the companion devices which are an indefeasible equipment in our daily life.
Ridding on our expertise on communication technology, we are going to create an integrated interactive multi-screen viewer experience, so as to engage the companion device users to stick with our productions, no matter on TV
screen or on the companion device screen.
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In short, our whole team consisting over 700 professionals are all excited about this new multimedia venture
in Hong Kong more important, we share the same vision as our Chairman, Mr. Ricky Wong we want to enhance the quality and increase the variety to our Hong Kong people, so as to bring Hong Kong back into the position of Asian drama
production hub.
FINANCIAL REVIEW
FY2012 was an extraordinary year in terms of cashflow due to the disposal of the Telecom Business during the year which has secured our funding flexibility to develop the Multimedia Business. While we are
at the start-up stage preparing for the TV programme library, no material revenue was generated from the Multimedia Business during the year. Most of the resources were mainly invested into producing weapons for the battle to be
declared.
Continuing operations
Continuing operations mainly include Multimedia Business as well as corporate functions. A net loss of HK$73.8 million was recorded in FY2012 versus a net loss of HK$32.1 million in FY2011 mainly due to
the uncapitalised expenses from Multimedia Business which represented the talent costs expensed to profits and loss before resources being fully deployed to the production during the year, and the maintenance of full corporate functions after the
disposal of Telecom Business.
There were HK$3.8 million turnover generated in FY2012 (FY2011: HK$Nil) mainly represented the licence fee
received from the Telecom Business to broadcast the news content produced by the news production operation unit, and the income received from artiste management functions.
As at 31 August 2012, we invested HK$87.6 million into programme costs which mainly represented the capitalisation of talent costs and production overheads which were directly attributable to
programme production and purchased contents during the year (FY2011: HK$Nil).
Discontinued operations
On 11 April 2012, the Group announced to dispose our telecommunications business (the Discontinued Operations) in Hong Kong and in Canada
to enable us to focus on the Multimedia Business. The Group subsequently received the final consideration of HK$4,873.6 million on 30 May 2012 to conclude our 20-year legend in the FTNS and IDD landscape. This transaction has brought to us a
gain on sale of Discontinued Operations of HK$3,520.1 million, together with the 9 months operation results from the Telecom Business before the disposal, the total net profits generated from the Discontinued Operations were HK$3,771.7 million.
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LIQUIDITY AND CAPITAL RESOURCES
The Group continued to be in a strong financial position for the year under review, in particular after receiving the final consideration of HK$4,873.6 million (a net cash inflow of HK$4,655.4 million
after netting transaction costs of HK$183.4 million and HK$34.8 million represented the cash and cash equivalents disposed of) from the sale of Telecom Business during the year. A special dividend of HK$2,022.5 million (i.e. at HK$2.5 per ordinary
share) was distributed on 29 June 2012. The remaining cash will be used to fund the continuing development and expansion of the Groups Multimedia Business. Pending such use of the funds, consistent with the overall treasury objectives and
policy, the Group will undertake treasury management activities with respect to its surplus cash assets. As and when cash is expected to be required to fund the continuing development and expansion of the Multimedia Business, the investments will be
realised as appropriate.
As of 31 August 2012, the Group had total cash at bank and in hand and term deposits amounting to HK$2,627.1
million (31 August 2011: HK$409.0 million) and outstanding borrowing of HK$3.3 million (31 August 2011: HK$1.2 million), which led to a net cash position of HK$2,623.8 million (31 August 2011: HK$407.8 million). As of 31 August 2012, the Group
has utilised HK$2.0 million banking facilities mainly for providing bank guarantees to utility vendors in lieu of utility deposits (31 August 2011: HK$6.9 million), leaving HK$21.3 million available for future utilisation.
As of 31 August 2012, we only had long-term liability of obligations under finance leases which amounted to HK$0.2 million (31 August 2011: HK$0.3
million). Our total cash and cash equivalents consisted of cash at bank and in hand and term deposits. There is no pledged bank deposit as at 31 August 2012 and 31 August 2011.
The debt maturity profiles of the Group as of 31 August 2012 and 31 August 2011 were as follows:
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2012
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2011
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HK$000
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HK$000
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Repayable within one year
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3,111
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950
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Repayable in the second year
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90
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105
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Repayable in the third to fifth year
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70
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183
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Total
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3,271
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1,238
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As of 31 August 2012, our outstanding borrowings bear fixed or floating interest rate and are all denominated in
Hong Kong dollars. As the Group was in net cash position for both FY2012 and FY2011, no gearing ratio is presented.
In FY2012, we spent
HK$462.4 million on capital expenditure versus HK$449.2 million in FY2011. Among this amount, HK$178.8 million was incurred for the Multimedia Business mainly for the construction of the Centre and for the set-up of production facilities for TV
drama series and Infotainment and variety programme. The remaining of HK$283.6 million was for the disposed Telecom Business.
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For the construction of the Centre and the expansion into the Multimedia Business pending the grant of
licence, our capital expenditure outlook for FY2013 is expected to be about HK$700.0 million, which is expected to be funded by internal resources retained from the consideration received from the disposal of Telecom Business, and banking facilities
within the Group. Overall, the Groups financial position remains sound for continuous business expansion.
Charge on Group Assets
As of 31 August 2012, the Group has not been required for any pledged deposits to secure its banking facilities.
Exchange Rates
All the Groups
monetary assets and liabilities are primarily denominated in either Hong Kong dollars or United States dollars. Given the exchange rate of the Hong Kong dollar to the United States dollar has remained close to the current pegged rate of HKD7.80 =
USD1.00 since 1983, management does not expect significant foreign exchange gains or losses between the two currencies.
Contingent
Liabilities
As of 31 August 2012, the Group had total contingent liabilities in respect of guarantees provided to utility vendors in
lieu of payment of utility deposits of HK$2.0 million (31 August 2011: HK$5.6 million) and HK$Nil to suppliers (31 August 2011: HK$1.3 million).
Save as disclosed above, there are no material contingent liabilities or off-balance-sheet obligations.
PROSPECTS
From this year onward, City Telecom is a 100% devoted multimedia company in Hong
Kong. While we are in the start-up stage, when transparency is low and subject to wider business variance and the granting of the free domestic television programme service licence, our preliminary key metrics are planned below but are subject to
change as business and market condition evolves:
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Self-produced content will scale up and plan to double the production output in 2012 with a budget of approximately HK$1.0 million per hour for TV drama series
production in 2013. We expect that majority of the production related costs and overheads will be capitalised until airing of programmes, expected some 69 months after the free domestic television programme service licence grant.
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Capital expenditure of about HK$700.0 million, majority of which will be for the new multimedia production and distribution centre under construction in Tseung Kwan O
Industrial Estate, New Territories. The latest announced construction cost budget is expected to be not less than HK$800.0 million to FY2014.
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DIVIDEND
In line with the guidance given in FY2011 annual report, the Board is recommending a final dividend of HK15 cents per ordinary share, together with the interim dividend paid at HK15 cents per ordinary
share, this will bring a total of HK30 cents per ordinary share to our shareholders for FY2012 (FY2011: HK30 cents per ordinary share).
In
addition to the above, because of the sale of the Telecom Business, part of the consideration from the transaction has been returned to our shareholders via a special dividend on 29 June 2012 at HK$2.5 per ordinary share.
Going forward, given the start up of the Multimedia Business which may have a wider variance, it is estimated that the Group will be in the investment
stage in the next three years and do not expect there will be dividend payout until we start to generate profit. By then, we shall review our dividend policy based on the balance sheet position, profit generating ability as well as the development
plans ahead.
TALENT REMUNERATION
Including the directors of the Group, as at 31 August 2012, the Group had 537 permanent full-time Talents versus 3,080 as of 31 August 2011. The total Talent-related cost was HK$553.0 million in
FY2012 versus HK$566.7 million in FY2011. The decrease in headcount was mainly due to the sale of Telecom Business during the year.
The Group
provides remuneration package consisting of basic salary, bonus and other benefits. Bonus payments are discretionary and dependent on both the Groups and individual performances. The Group also provides comprehensive medical insurance
coverage, competitive retirement benefits schemes, staff training programmes and operates share option schemes.
PURCHASE, SALE OR
REDEMPTION OF LISTED SECURITIES
Neither the Company nor any of its subsidiaries has purchased, sold nor redeemed any of the Companys
listed securities during the year ended 31 August 2012.
COMPLIANCE WITH CODE ON CORPORATE GOVERNANCE PRACTICES
The Company has complied with the applicable code provisions of the Code on Corporate Governance Practices as set out in former Appendix 14 to the Listing
Rules from 1 September 2011 to 31 March 2012 and has complied with the applicable code provisions as set out in Corporate Governance Code and Corporate Governance Report to the existing Appendix 14 of the Listing Rules from 1 April
2012 to 31 August 2012.
CODE OF CONDUCT FOR SECURITIES TRANSACTIONS BY DIRECTORS
The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuer (the Model Code) contained in Appendix 10 to
the Listing Rules as the code of conduct for securities transactions by Directors (the Company Code).
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Having made specific enquiry with the Directors, all of the Directors confirmed that they had complied with
the required standard set out in the Model Code and the Company Code throughout the year ended 31 August 2012.
REVIEW BY AUDIT
COMMITTEE
The Audit Committee has reviewed and discussed with the management of the Company the audited final results for the year ended
31 August 2012.
The Audit Committee comprises three Independent Non-executive Directors, namely Mr. Lee Hon Ying, John (the
Chairman of the Audit Committee), Dr. Chan Kin Man and Mr. Peh Jefferson Tun Lu.
FINAL DIVIDEND
The Board has recommended to pay a final dividend of HK15 cents per ordinary share in respect of the year ended 31 August 2012 (2011: HK15 cents per
ordinary share). Subject to the approval of the Companys shareholders at the forthcoming Annual General Meeting, the proposed final dividend will be distributed on or about 24 January 2013 to the shareholders whose names appear on the
register of members of the Company as at the close of business on 8 January 2013.
CLOSURE OF REGISTER OF MEMBERS
The register of members of the Company will be closed during the following periods:
(i)
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from 27 December 2012 to 31 December 2012, both days inclusive, for the purpose of ascertaining shareholders entitlement to attend and vote at the 2012
Annual General Meeting. In order to be eligible to attend and vote at the 2012 Annual General Meeting, all transfer documents accompanied by the relevant share certificates must be lodged for registration with the Companys Share Registrar,
Computershare Hong Kong Investor Services Limited at Shops Nos. 1712-1716, 17th Floor, Hopewell Centre, 183 Queens Road East, Wanchai, Hong Kong not later than 4:30 p.m. on 24 December 2012; and
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(ii)
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from 7 January 2013 to 8 January 2013, both days inclusive, for the purpose of ascertaining shareholders entitlement to the proposed final dividend. In
order to establish entitlements to the proposed final dividend, all transfer documents accompanied by the relevant share certificates must be lodged for registration with the Companys Share Registrar, Computershare Hong Kong Investor Services
Limited at Shops Nos. 1712-1716, 17th Floor, Hopewell Centre, 183 Queens Road East, Wanchai, Hong Kong not later than 4:30 p.m. on 4 January 2013.
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ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held on 31 December 2012. Notice of the Annual General Meeting together with the Companys Annual Report will be published and dispatched in the
manner as required by the Listing Rules in due course.
By Order of the Board
Wong Nga Lai, Alice
Executive Director, Chief Financial Officer and
Company Secretary
Hong Kong, 21 November 2012
As at the date of this announcement, the executive directors
of the Company are Mr. Wong Wai Kay, Ricky (Chairman), Mr. Cheung Chi Kin, Paul (Vice Chairman), Ms. To Wai Bing (Chief Executive Officer), Ms. Wong Nga Lai, Alice (Chief Financial Officer); the non-executive director is
Dr. Cheng Mo Chi, Moses; and the independent non-executive directors are Mr. Lee Hon Ying, John, Dr. Chan Kin Man and Mr. Peh Jefferson Tun Lu.
Where the English and the Chinese texts conflicts, the English text prevails
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