Okay. Good afternoon, ladies and gentlemen.

Welcome investors to Hong Kong Broadband 2026 interim results announcement. Hong Kong Broadband has been upholding three growth strategies to shape the future and reshape the industry.

We are in Hong Kong and we have unique advantages. We are creating digital service independent battle to drive the digital development of GBA.

We are working steadily onto the international stage. We have strengthened our network capability.

We have even more adequate investment resources and we are more aggressive in expanding our blueprint. We are upgrading our services.

We are working on copper to fiber transformation and we are deepening our intellectualization and digitalization. We are incorporating AI into different scenarios.

Since September last year, Hong Kong BN and China Mobile are creating bigger customer value in five major co-creations. In terms of customer synergy, we are integrating our customer bases to expand our footprint.

For business synergy, we are deepening fixed and mobile integration to enrich our product portfolio. In terms of synergy of services, we are offering cross-border telecom and also cloud network integration.

We incorporated our computing network and also our fiber capabilities, and we make use of our economies of scale to lower our operating cost. In first half 2026, we saw that revenue was up 5.1% year on year at 6.029 billion, EBITDA up 14.2%, net profit was up 108 million, up 20%, for other operating expenses down 2.8% at 1.499 billion, deleveraging from 4.79 down to 4.58.

EPS, or dividend per share, 15.5 Hong Kong cents. Network all along has been our way to service our customers and for creating customer shareholder value.

Network upgrading and quality enhancing has been important for us. We are expanding our network.

We are upgrading fiber equipment to enhance customer experience. We increased annual Capex so as to cover more buildings this year.

For a number of customers covered, it's up 2% at 2.66 million. At the same time, we upgraded our fiber to offer very high speed network.

Many customers have been encouraged to upgrade to gigafast, so that we can introduce and promote our extension services. We are introducing our copper to fiber transformation so as to enhance customer experience.

Then for our core network, we have the 100G 10 times upgrading. This is for AI, cloud, supercomputing and also huge amounts of use of data.

Among successful cases in different regions, many customers are integrated into the 100G network, and then they are integrated into global internet. There is now lower latency, overall reliability and stability is enhanced.

For innovative customers in GBA as well as fintech customers in Singapore and also cloud ecology customers in Japan, through private lines, they are integrated into our 100G network so that they can be linked to multiple platforms and data center. We are improving our core capabilities when there is huge amounts of data demands.

At the same time, we are strengthening the cross-border network hub status in Asia Pacific so that we can have a very mega bandwidth, so that there is high computing power applications. Then for upgrading our quality, we are synergizing and bettering user experience.

We strengthen network quality monitoring system. We adopt China Mobile Group's broadband quality standards.

We build end-to-end observable model and we establish a perceptible and visualizable network quality system. We optimize content distribution and deployment, improve localized content distribution efficiency and rich CDN, OTT resources, reduce application latency and jitter.

For enhancing end-user experience, we leverage China Mobile Group's extensive resources and industry chain advantages, improve connectivity quality between Hong Kong and the GBA and optimize Chinese mainland gaming experience. You can see that we have already seen results, and localized traffic scheduling accuracy is increased by 36%, localized traffic volume increased by 30% for use on Douyin and Xiaohongshu.

The latency was reduced from 32 millisecond to 5 ms, 65% reduction in latency for mainstream Chinese mainland games. We have already enhanced the speed and traffic performance of Chinese mainland network access.

We're faster and more reliable, empowering enterprises to connect efficiently to the mainland network. Northern Metropolis network strategy, it is our forward-looking vision for the future, and Northern Metropolis accounts for one-third of Hong Kong's land area in future population.

It is a new engine for Hong Kong strategic development, substantial economic value and growth potential, creating large-scale employment and boosting productivity, with high-speed private network. For various business areas, we offer dedicated networks.

At the Northern Metropolis, network covering up to 350,000 residential households. Now let me talk about the performance of our enterprise solutions.

Revenue was up 10.5% at 2.817 billion. SI revenue up 11.1% at 433 million, two gigabps and above GigaFast broadband customers over 18,000, up 2.1 times year on year, average monthly churn rates came down to 1.1% from 1.3% last year, building coverage was up 1% at 8,266 buildings.

For our enterprise solutions, the base is GigaFast, and through three directions, we are increasing our growth. Solution upgrades.

We are enhancing our upgrades. Chinese governments and also overseas enterprise markets are our focus.

Besides, together with our partners, we have co-created sci-tech ecosystem. This can drive our overall business development, including cybersecurity, AI, cloud, IT infrastructure and digitalized application.

All these have been our integrated solutions. GigaFast business broadband.

Through one year's time, we have increased 2.1 times in terms of customers number, and then 70% is the router bundling rate, and then there are 18,000 GigaFast customers for SMEs. We have value-added services for diverse business needs.

In the past, we worked for retail, F&B, general business, property management sectors. This year, we have newly introduced smart education solutions.

It is a one-stop solution, covering AI teaching, computer equipment, AI software, smart mailbox, and AI CCTV. Besides, we have got this endpoint solution security.

In first half 2026, there is average monthly fee increased by 25-plus percent, new average monthly fee, $800. Number of new value-added package subscribers, 7,000-plus, total new contract value, 150 million, up 11% year on year.

Then for large and medium enterprises, in the first half, project value exceeded 95 million, up 17% year on year. We delivered more than 350 projects.

We converge telecom and tech enterprise expertise, meeting complex digital needs of large and medium enterprises across industries. We offer unified multi-cloud management and connectivity, customized multi-branch private network, critical infrastructure end-to-end services, security, and derivatives, market connectivity and professional applications.

We successfully served multinational corporations, major Hong Kong enterprises, financial regulators, government and quasi-government bodies, retail chains, and other customers. We deliver comprehensive, scalable connectivity solutions.

For system integration business, our performance is outstanding. We power enterprise digital transformation.

In the first half, revenue was up 11% year on year at 433 million. Gross profit was up 16% at 83 million.

It is a core technology partner leading enterprise digital transformation. We are Hong Kong’s leading cloud and managed services operator, revenue was up 16%.

Then we are also an IT operations and security management expert. We have brought in exclusive authorization from vendors, enhanced data security and system upgrade maintenance capabilities.

We are also a trusted AI application partner. We build end-to-end reliable AI environments to deliver tailored solutions for enterprises.

Hong Kong Broadband, ITEA, builds an IT ecosystem. We collaborate for shared success.

We launched in 2025 referring to this alliance, and it brings together leading technology solution providers across sectors. In first half 2026, we have newly signed agreement with H3C, Yunke China, Yonyou, Integrity Tech, Lark, and so on, so as to give us better developments and business opportunities.

There are signing with exclusive partners to enhance our profit margin. For growing computing power, we drive AI services towards stable recurring revenue.

Computing services growth, 13-plus percent year on year. Intelligent services growth, 30-plus percent year on year.

When we face different smart organizations, we offer different services. For government departments, we provide intelligent solutions to strengthen unified management of public assets.

For trading platforms, we establish sustainable intelligent operating systems to support long-term stability of critical systems. For social service organizations, we construct end-to-end enterprise intelligent systems covering budgeting, financial data flows and user processes.

There is clear enterprise demand for AI, fueling future computing power developments. We build high-power computing portals.

We expand computing power capacity to meet AI and high-performance computing demand. We adopt a dual-track approach of in-house development and resale, balancing long-term control with near-term scaling.

Computing-powered smart business models, deeply embedding computing power and AI agents into enterprise system integration and delivery, integrating proprietary AI agents as a core capability into platform delivery, deep integration with China Mobile's product ecosystem. We expand application scenarios through smart operations and deep platform integration, covering IoV, low-altitude economy, IoT platform, 5G, and AI platform, mobile cloud, and more.

End-to-end AI solutions. It is tailored for industry scenarios, powering customer digital transformation.

We have strong capabilities, deep industry experience, and proven customer cases. We help businesses across sectors achieve AI-driven digital transformation.

For governments, agencies, and logistics companies, we have built knowledge-based AI agent for unified asset management, intelligent workflow queries, and for insurance, banks, and other operators, we build omnichannel contact AI agents. Then for trading platforms, logistics companies, entertainment, we have built data intelligence core for data integration and analytics and embed AI into workflows.

We are the first to launch OpenClaw AI solution as a telco. We are guided by philosophy: education first, application for all.

We offer professional installation services, practical skills training, and enterprise-grade network protection. The first workshop was successfully held on 23rd March 2026.

More sessions will be launched with overwhelming response. For international data business, we can see year-on-year growth reflecting strong cross-border demand.

In first half, revenue increased to 143 million, up 20% year on year. With strong customer relations, local network advantage, and deep collaboration with overseas carriers, our fixed network business offers customized connectivity solutions to meet diverse needs of various industries.

We offer high bandwidth service and also private line and international private network. We focus on innovation and technology development, on R&D, and also on quantum secure private line.

We redefine data transmission security. Quantum secure transmission can eliminate eavesdropping and prevent decryption.

There are three advantages: ultimate security, ultra-low latency, and bandwidth on demand. Application scenarios include finance, healthcare, aviation, enterprise compute network, and energy.

Next, our residential solutions. Residential telecom revenue was up 3.8% year on year at 1.241 billion.

Residential ARPH up 2.8% year on year at 218 dollars. 2G and above GigaFast broadband subscriptions year on year increased 42.7% at 114,000.

Broadband subscriptions up 1.8% year on year at 960,000. Total homes passed, 2.66 million, up 1.7% year on year.

For our residential solutions, GigaFast is our core, and there are three major directions to drive growth. For fixed-mobile convergence, there is one-stop service, and then Infinite-Play, we bundle value-added services to enhance customer loyalty and renewal rates.

Network upgrades, we accelerate fiber network coverage, driving fiber in, copper out, elevating user experience. We can satisfy customer different needs, including OTT content, expansion, and home infinity service.

There are also healthcare services and solutions. For our residential 2G and above, annual growth is 43% year on year at 114,000.

At the same time, 80% of customers are bundled with our routers. 10% of our customers are using higher-grade 5G or 10G service.

Then there is even smarter and more convenient lifestyle convenience. There is voice, global SIM, OTT service, broadband, Wi‑Fi, security, insurance, and healthcare.

Altogether there are 11 different types of services to satisfy customers’ needs. Those using 4 and above Infinite-Play solution, there are already more than 27% of such customers.

It is now at 218 dollars in terms of residential ARPH. Through Infinite-Play package, we cover e-sports, OTT, AI users, and also working from home.

OTT subscription business enjoys steady growth. We are Hong Kong's number one telco partner in Netflix, iC, Disney Plus, and MyTV Gold.

This year we introduced WeTV and KKBOX. For our ARPU is up 14% year-on-year, paid subscriptions grew 12% year-on-year.

As a result, our overall revenue was up more than 26%. Then mobile services is our core this year.

At the moment, we see a lot of market opportunities from different households and also from mobile customer base. At the same time, there is significant potential to upgrade or switch to broadband times mobile bundle services.

Our market advantages are high-speed, low-latency cross-border connectivity, integrated Hong Kong-China mainland communication solutions for cross-border and high-net-worth customers. We will strengthen dual-brand synergy.

We will strengthen broadband times mobile service integration, improving renewal rates, ARPU and value-added service revenue. Comparing with last year, in 2026, average monthly fee is up 7% year-on-year.

In March, we increased our marketing efforts, telecom service residential customers increased over 100%. Gerontech Solutions.

We safeguard seniors for aging in place. This is very important.

Elder Buddy includes home safety, daily care and outdoor smart devices. For high-risk carers and families, we're offering Gerontech solutions.

The above is our result presentation. Thank you.

Thank you, management. I am Andy.

I have a question. Looking at your international business growth is quite good, up 20%.

What's are the reasons? Thank you.

Looking at the growth of 20% for international business, there are a few reasons. First, our customers actually can see that there will be more and more going abroad and overseas development, and then companies which use Hong Kong as their international headquarters, there are more and more such companies.

In the past, our customers are based in Hong Kong and then gradually they expand to Southeast Asia, Middle East. Of course recently, business was lower in Middle East, and for these areas there is the need for international carrier lines.

The second angle or perspective is that right now, as said earlier, there is more and more ecosystem alliance like ITEA. With Mainland, Hong Kong, Chinese solution companies, they are also looking for overseas development opportunities.

When we collaborate in Hong Kong, we also work together in a lot of projects and solutions in Southeast Asia. Regarding overseas development, especially going out from Mainland, Hong Kong serves as the headquarters to drive our growth.

Some time ago in the market, interest rate level was at a rather high level, and right now it is coming down, the trend is a downward one. At present, it is at a relatively stable stage.

Recently, if you look at Hong Kong HIBOR, it is at around 2.5. I believe, on one hand, market interest rates will come down or stabilize.

At the same time, in terms of financing, we are making a lot of arrangements to lower cost. We expect that to us finance cost will be more and more favorable.

That will be the outcome.

Actually, for Hong Kong Broadband, we basically focus on local resources. All our resources are in Hong Kong.

We are talking about our network resources. At the same time, on the Mainland we also have human resources because a large number of people are doing ISI business on the Mainland, and there are also some Mainland Chinese companies going abroad.

As mentioned earlier, there are also some Mainland local businesses. These are done on the Mainland.

At the same time, we work with China Mobile Group. We work with the Mainland departments, and our resources are being integrated to get more business opportunities.

For example, Hong Kong companies going into Mainland, or Mainland companies going overseas via Hong Kong. These are things that we can do.

It's like a door opening on two sides. As long as things go through Hong Kong, we can do it.

This is going to be a big development opportunity in the future. Thank you.

Let me emphasize Capex growth is within our range of control, and there are directions for the investment. It all depends on where market opportunities are.

Now in the Hong Kong market, more market opportunities are related to AI and also smart services. These are important areas where we invest our Capex.

At the same time, we will have to see where customer needs are in the market. For broadband network access and also integrated services, they have demand.

This is another focus of our Capex, and then our own company's development direction. For old and broken equipment, we will invest capex to upgrade our equipment and technology.

These are the three areas. Thank you.

Let me answer this question. In the AI area, where just now you might have seen from our results, SI, system integration, accounts for around 20 to 25 percent of total ES revenue.

It is difficult to say which part is AI and which is not out of this 20 to 25 percent. Regarding customers' demands and also network bundling, they are related to AI.

When we announced results, there is not an item specifically about AI. Regarding our moves on AI, today you can see that there are many moves in relation to AI.

Just now Mr. Li also said that in relation to our capex, we also take into consideration some capex related to computing power.

In May, on the 7th of May, we will make a new move, and that is on AI plus network. We are going to have a new initiative.

Actually, we can see that most of Hong Kong enterprises now are looking at how to make use of AI to deliver faster and better experience. For our future positioning, it is AI plus network plus AI development.

Please stay tuned.

Hong Kong Broadband performs quite well. I think we have a very professional and engaged team.

We are all united together, and we are delivering more services for customers and for the market.

Thank you. In Mr.

Li's presentation, he mentioned that there are five areas of synergy, and these five areas of synergy will be deeper and deeper, and the empowerment of Hong Kong Broadband will get stronger. Regarding customer services, content, and foundation of customer services, there will be big enhancement, and then the room in the market will be broader.

Thank you,

Let me take this question. In 2026 first half, we proposed to pay 0.155 Hong Kong dollar of dividend.

It seems to be flat as compared to same period last year, that is first half last year. It doesn't mean that our dividend policy is going to be flat.

In our results announcement, we already gave a very clear guidance. We will try our best to create stable and sustainable return for all shareholders.

That's our strategy. Then for our external dividend guidance, under usual circumstances, we'll look at adjusted free cash flow.

Based on not less than 75 percent dividend will be paid out, not less than 75 percent of the adjusted free cash flow. Of course, the board will actively evaluate our dividend policy and dividend payouts.

As usually we will consider our company's results and performance, and also just now our management already said or talked about an increase in our capex. We will have to consider our future capital and investment needs, and at the same time, there are debts that we need to repay, and we will also consider future development needs.

We will take into consideration all these factors in determining our dividend policies and dividend payouts. Thank you, management.