Financial Highlights<strong>2012</strong> 2011HK$’000 HK$’000 % changeTurnover (from continuing and discontinued operations) 554,689 680,057 -18%EBITDA (from continuing and discontinued operations) 15,077 393 +3,736%Net Assets 213,522 225,593 -5%Cash and Bank Balances 121,186 121,866 -1%Turnover(HK$’000)EBITDA(HK$’000)800,000769,748680,057554,68920,00015,077400,00010,0003,492393002010 2011 <strong>2012</strong> 2010 2011 <strong>2012</strong>Net Assets(HK$’000)Cash and Bank Balances(HK$’000)250,000212,020225,593213,522200,000 174,502121,866121,186125,000100,000002010 2011 <strong>2012</strong> 2010 2011 <strong>2012</strong>e-<strong>KONG</strong> <strong>Group</strong> currently has a portfolio of business interests in the telecommunications and information technologysectors in the United States, China, Hong Kong and Singapore and is actively pursuing other opportunities that arecomplementary to its existing operations or have high growth potential, ability to generate healthy cashflows andcapabilities to produce optimum return on capital. The Company is listed on the main board of the Hong Kong StockExchange (SEHK: 524) and maintains a sponsored Level 1 ADR programme through The Bank of New York Mellon(Ticker Symbol: EKONY).<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong> 3
e-<strong>KONG</strong> GROUP LIMITEDChairman’s Statement<strong>2012</strong> was a defining year for the <strong>Group</strong>. Over the past few years, the <strong>Group</strong> has been relatively successful in leveragingits existing assets and capitalising on technological advances as well as improvements in operating efficiency to maintainits core voice business and to progressively introduce new related products and services without making significantinvestments. However, in an ever-changing and competitive industry landscape, growing its business through incrementaldevelopments may no longer be sufficient to ensure long-term sustainability. Material transformation and diversificationthat keep abreast with rapid market changes are required in order to deliver step-function advancements in operatingresults and longer term benefits. In <strong>2012</strong>, rather than continuing on a maintenance and incremental growth path, the<strong>Group</strong> made the concerted decision to be totally committed to a transformative strategy whereby it will make sizeablecapital and operating investments to aggressively expand into the more lucrative and high growth segments of theInformation and Communications Technologies (ICT) industry. In the short term, as each of the <strong>Group</strong> businesses gothrough this investment phase its financial performance is likely to be impacted, nevertheless we believe that thebusinesses being built today will deliver long-term shareholder value in the coming years.In the US, the <strong>Group</strong>’s jointly-controlled entity ANZ Communications LLC, following the successful completion of itsmerger and integration process, accelerated its efforts to reform its organisational set up, human resources structureand operating model as it prepares itself to launch a world class suite of next generation, cloud-based solutions to boththe corporate and carrier markets. A well-experienced and innovative executive team now in place is working in unisonto execute on the ANZ’s business plan that encompasses a comprehensive product, marketing and sales strategy fullysupported by an integrated, scalable and customisable technology platform. In building and deepening its corporateculture and identity that is well aligned with its business vision, ANZ has also introduced a new corporate logo ( ),a new tagline (Collaborate, Innovate, Deliver) and launched its new website (www.anpi.com). While there remainspotential execution and sector risks, ANZ’s management believes double-digit organic growth rates over the next fewyears is possible considering the large market size in the United States and that the market is just now reaching thestage of mainstream adoption of the targeted services.In Asia, ZONE Singapore’s transition entails a two-prong strategy consisting of organically building its broadbandconnectivity business while augmenting its data and voice business through the acquisition of a domain name registrationand web / data hosting business assets. ZONE is committed to delivering broadband access, applications and servicesthat meet the mounting demand of both individual and business customer segments. While much work has yet to bedone, ZONE has now established a strong foundation for it to execute on fulfilling its vision to be the leading alternativecommunications service provider in Singapore.The <strong>Group</strong>’s transformation initiatives continue to capitalise on those growth opportunities that are driven by the threemajor market trends, namely, the migration from fixed telephony to broadband, the rapid adoption of IP access andservices in place of the legacy services and the transition from mobile voice to mobile data. Such initiatives include theintroduction of a suite of IP-based hosted solutions to replace traditional PABX and the availability of OTT-styled mobileapplications as part of the services bundled with the hosted solution to enable customers on mobile devices to accessto our suite of applications and services. The <strong>Group</strong> will continue to expand its service offerings in alignment with theabove market trends, particularly those related to mobile connectivity and applications.4<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>
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