HKBN (1310) investor relations material

Executive summary

• Revenue increased 5.1% year-on-year to HKD 6.029 billion in the first half of 2026, with EBITDA up 14.2% and net profit up 20% to HKD 108 million.

• Strategic focus on digital transformation, AI integration, copper-to-fiber network upgrades, and global expansion, including Greater Bay Area integration.

• Enhanced collaboration with China Mobile and five co-creation synergies driving customer, business, and service transformation.

• Strong enterprise and residential business growth, with digital and AI solutions fueling transformation.

• Enhanced network coverage and quality, with 2.66 million residential households covered, up 2% year-on-year.

Financial highlights

• Revenue reached HKD 6.029 billion, up 5.1% year-on-year; EBITDA at HKD 1.257 billion, up 14.2%; net profit at HKD 108 million, up 20%.

• Operating expenses decreased 2.8% to HKD 1.499 billion year-on-year.

• Dividend per share maintained at HKD 0.155, flat year-on-year.

• CapEx increased 13% year-on-year, focused on AI, smart services, and network upgrades.

• Adjusted free cash flow at HKD 157 million, up 24.5% year-on-year.

Outlook and guidance

• Dividend payout policy targets at least 75% of adjusted free cash flow, with ongoing review based on capital needs and performance.

• Expectation of lower finance costs due to declining and stabilizing interest rates.

• Continued expansion in AI, network integration, and international business, with new AI+network initiatives planned.

• Focus on expanding GigaFast broadband services and advancing “Fibre In, Copper Out” upgrades.

• Residential strategy to deepen “Infinite-Play” offerings into gerontechnology, insurance, healthcare, and smart living.