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FY26Second Interim Results AnnouncementEmpowering LivesReshaping BusinessesInspiring Innovations © HKBN Ltd. 2026. All Rights Reserved.
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DisclaimerThese materials have been prepared by HKBN Ltd. (the “Company”) solely for use at this presentation and have not been independently verified. No representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions presented or contained in these materials.It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial or trading positions or prospects of the Company. None of the Company or any of its respective directors, officers, employees, agents, affiliates, advisers or representatives accepts any liability whatsoever in negligence or otherwise for any loss howsoever arising from any information or opinions presented or contained in these materials or otherwise arising in connection with these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.Statements that are not historical facts, including statements about the beliefs and expectations of the Company, are forward-looking statements. These statements are based on current plans, estimates and projections, and undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and the Company has no obligation to update any of them publicly in light of new information or future events. Forward-looking statements involve inherent risks, uncertainties and assumptions. The Company cautions that if these risks or uncertainties ever materialise or the assumptions prove incorrect, or if a number of important factors occur or do not occur, actual results of the Company may differ materially from those expressed or implied in any forward-looking statement.This document does not constitute, and should not be construed as constituting or forming part of, any advertisement of, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares of the Company or of any of its controlled entities or affiliates, in any jurisdiction. Neither this document, nor any part of it, shall form the basis of or may be relied upon in connection with, any contract, investment decision or commitment whatsoever, nor does it constitute a recommendation regarding the shares or securities of the Company. 2
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Mr. LI XinHKBN Executive Director andGroup Chief Executive OfficerDr. Denis YIPHKBN President andGroup Chief Operating OfficerMr. SHEN QingyiHKBN Executive DirectorandChiefFinancial Officer Management Present 3 HKBN Board Chairman andExecutive Director Ms. SHI Xiaoping
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Overview
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FY26 Second Interim Results:Solid Growth withForward-Looking Capital Deployment(From September 2025 to August 2026) 5 Revenue$11,821M▲ YoY +6.2% Net Profit$317M▲ YoY +53.0% CAPEX$692M▲ YoY +35.6% OPEX ▼YoY -1.5% Deleveraging4.66xto4.44x EBITDA ▲ YoY +1.5%*$2,487M $3,077M All financial information contained in this presentation is presented in Hong Kong dollars (HK$), unless otherwise specified. * EBITDA includes annual salary review and discretionary bonus aimed at enhancing employee service quality. Excluding this factor, the growth would be 4.1%.
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Dividend 6 In view of the change in the financial year end date in the current year, the Group has published two interim reports and an annual report in the current financial year. The Company distributed the first interim dividend in April and has resolved not to declare a second interim dividend for the twelve-month period ended 31 August 2026. After the current financial year closing, the Company will continue to adhere to its dividend policy, distributing dividends in an amount of not less than 75% of the adjusted free cash flow.
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7 Upgraded the MetroNet from 100Gbps to 400Gbps,achieving full coverage of data centres across Hong Kong,establishing 11 self-operated AI data centre nodes,and connecting cloud platforms and enterprise customers Network Upgrade Enhanced network efficiency and reliability to support high-value applications such as AI, supercomputing, cloud computing, real-time trading and medical imagingApplicationEnablement Expanding the high-value enterprise and AI customer markets to drive ARPU growth and margin expansionBusiness Impact $100M Investment * Based on publicly available information as of 4 August 2026 (the launch date of HKBN AI+). 35% Increase in CAPEX, With a Focus on Upgrading Network and AI Computing Interconnect Infrastructure to Build Capacity for the Future ConnectivityUnlocking Computing PowerAIEmpowering Network Computing PowerDriving AI Innovation StrengtheningNetwork Foundation Strengthening Our Network LeadershipSeizing AI Opportunities Market Position Self-built Metro Fibre Backbone Network HKBN is Hong Kong’s first telecoms service provider to offer a comprehensive enterprise-grade AI service platform* AI ApplicationsFrom ready-to-use to tailor-made AI solutionsDomestic AI ComputeProprietary GPU computing power, secure and compliant Network Infrastructure AI ∞ Connectivity ∞ Computing Power: Leading Digital IntelligenceTransformation and Driving Business Growth DrivingFull-Stack Innovation
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8 8,320Commercial Buildings▲ YoY +100(100% coverage of Grade A andB or above premises) 2.69M Homes Passed▲ YoY +48kTarget for Full-Fibre Coverage Across NetworkElevating Digital Customer Experience for the AI EraResidential and Enterprise Broadband 10G-PON Fibre Coverage 98% Network Coverage Approx. 133K▲ YoY +40% 2Gbps andAbove BroadbandSubscriptionsResidential SolutionsEnterprise SolutionsApprox. 26K▲ YoY+106% Industry-Leading Benchmark Continuous Investment in High-Speed Networks:Delivering Fibre-to-the-Home and Bringing AI into Everyday Life
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Significantly increased Chinese Mainland direct-connect bandwidthin collaboration with China MobileEstablished comparative network monitoring from eight major Mainland cities to Hong Kong, with continuous optimisationPriority optimisation of gaming experience,improving average game latency by 59%Before vs. AfterHonor of Kings Tencent Smite Genshin Impact Improved73.0% Improved30.3% Improved70.8% Improved62.4%20252026 To meet rising demands, we deployed more resources and expanded international and local bandwidth to ensure smooth user experience CitiesHKBNPeerBeijing45.693.1Shanghai35.4103.3Guangzhou13.427.8Shenzhen15.339.2Wuhan38.3145.9Hangzhou38.447.4Chengdu41.8106.7Suzhou42.5103.4 Chinese Mainland Capacity ExpansionQuality MonitoringUser Experience Optimisation (Unit: ms) Enhanced local backbone capacity and increased bandwidth with local and overseas carriers 20252026 Local andOverseasNetwork Optimisation Stable Growth in Access to Local and Overseas Applications, with Accelerating Demands for Chinese Mainland ApplicationsTo address customers' cross-border latency and stability pain points, HKBN has implemented two major upgrades to its cross-border network services, enhancing quality and optimising the user experienceLocal andOverseas: Enhanced ResourcesExpanded Chinese Mainland direct-connect bandwidth, guiding platform traffic to local distribution in Hong Kong and driving overall traffic growth;Traffic to individual platforms (such as Xiaohongshu) increased by 275% Chinese Mainland Connectivity: Substantially Optimised, Lower Cost, Higher Efficiency ▲ Increased by 10%▲ Increased by 53% Network Service Upgrade: Optimising Local and Overseas Connectivity, Expanding Chinese Mainland Direct-Connect Bandwidth 9 55% better than competitors
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Synergy Achievements Strengthening Collaboration with China Mobile: Integrating Resource Strengths to Unlock Growth Momentum 10 Enhanced Customer ReachHKBN's 928k broadband customers + CMHK’s 6 million mobile customersAccelerated Business ExpansionGrowth in MVNO customers and residential broadband resale customers Mobile Base StationBackhaul Line LeasingAI Data Centre Leasing Services Growth in Return-to-Chinese-Mainland Network Bandwidth China Mobile Security SolutionsGrowth in contract customersChina Mobile Cloud ProductsSelf-developed multi-cloud management platform + China Mobile Cloud + Cloud PC Platform AdvantageHong Kong's first telecoms service provider to offer a comprehensive enterprise-grade AI service platformTeam AdvantageCertified professionals and developers to provide systemintegration and deliveryEcosystem AdvantageHKBN iTEA+ HK-SHINEResource AdvantageGovernment and enterprise customer reach + shared enterprise broadband resources Market SynergiesBroadband resale,Mobile service resaleNetwork SynergiesResource sharing,Advanced network tech enablement,Interconnected network foundations,Dedicated cross-border network optimisation Solutions & ProductsSynergiesDiversified MVNO packages, Residential & enterprise broadband solutions,Cloud-network & cybersecurity products,Complementary project delivery capabilities Safeguard MechanismsJoint talent pool development, Compliance & operational assurance Market Collaboration China Mobile Product EmpowermentTransmission Resource CollaborationAI Solutions
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Enterprise Solutions
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Enterprise Business:Steady Revenue Growth and Enhanced Customer Value 12 $6,234M▲ YoY +13% 109K▲ YoY+2% Large Enterprise System Integration (SI)▲YoY +29%Reflecting Strong Cross-Border Connectivity Capabilities Enterprise Services RevenueEnterprise CustomersBroadband Subscriptions Small and Medium Enterprise Customers~85,000Technology Business Revenue in Chinese Mainland andMacaoReached $1,200M▲ YoY +12.8% 101K▲ YoY +1% Overseas Business Growth“Going Global” Communications Services RevenueNew Project Wins with Total Contract Value▲ YoY+85%Annual Revenue▲ YoY +19%Small and Medium EnterpriseCustomersARPU▲YoY+4%
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End-to-End Enterprise AI Platform: First in Hong Kong, Powering a Complete Ecosystem 13 Enterprise AI Application Layer AI Model Service LayerMulti-Model AggregationandCapabilityIntegrationSecurity andGovernance Layer Compute Management LayerCubeRouter | Intelligent Workload OrchestrationCompute Infrastructure LayerDomestic Computing PowerDeployed LocallyNetwork Infrastructure LayerMetroNet | GigaFast Broadband Ready-to-Use Solutions for SMEs,Customised Solutions for Large Enterprises Not Leased, Not SharedEnd-to-End Network Foundation Intelligent LLM Backend: Automatic Allocation By TaskKimiDeepSeekQwen Domestic Compute Local Deployment Dedicated and Shared GPU Resource Pools Available TOKENS AI Integrated into Existing Enterprise Applications Fully Flexible Systems with Usage-Based Billing FinanceMarketingLegal HRSalesOperations System Integration 100+ Pre-Built AI Agents and SkillsEnablement andTrainingToken-as-a-Service Ready-to-Use for SMEsTailor-Made for Large Enterprises MiniMaxOthers AI ApplicationsAI InfrastructureNetwork Infrastructure Data SecurityandCompliance Management HKBNES NetworkSelf-Built Metro Fibre Backbone
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Enterprise-Grade AI Platform Solution: Intelligent Process Automation, Reshaping Ways of Working Top-Tier GPUsIntroducing Chinese Mainland’s advanced computing resourcesLocal Computing PowerComputing facilities hosted in Hong Kong data centresSecure and CompliantMeeting data privacy and compliance requirements Proprietary GPU Compute InfrastructureProviding AI Computing Power Dual-Service ModelFlexible billing via Token-as-a-Service and Agent-as-a-ServiceSME SolutionsHKBN WorkMate, ready out of the boxLarge Enterprise SolutionsSystem and data integration to build customers' AI foundations Flexible Service ModelTailored AI Services for Enterprises Strategic AlliancesCollaborating with computing and cloud partners to build a smart ecosystemDefence ArchitectureBuilding cybersecurity and data security mechanismsHKBN InnoTech Ecosystem Alliance (iTEA)Bringing together leading international and Chinese Mainland technology partners to build an AI+ ecosystem Strategic Partner EcosystemAI Ecosystem Collaboration 14 HKBN AI+ : A One-Stop Enterprise-Grade AI EcosystemEmpowering Enterprises to Achieve Secure AI Transformation Launched in August 2026Reached 1,960 Users, Revenue Exceeded $20M
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Large Enterprises*: AI-Driven Transformation Across the Board * Including large enterprises, mid-markets and carriers. Enhancing Customer Experience: Real-time AI responses to common enquiriesOptimisingService Processes:Automatic conversation summarisation and service order generationDeep Information Integration: A unified operating interface Improving Frontline Efficiency:Instant access to key operational informationCross-Segment Data Integration: Connecting enterprise and partner platformsStrengthening Operational Coordination: AI-assisted decision-making and resource deployment Accelerating Case Management: Automatic speech-to-text transcription and record generationEnhancing Service Quality: Intelligent summarisation of key informationStrengthening Service Outcomes: AI case analysis and trend tracking AI Application Case Studies Across Key IndustriesCommercialCustomers GovernmentDepartments Charitable Organisations AI Opportunities from Large Enterprise Customers$600M 15
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Small andMedium Enterprises:One-Stop Solutions to Enhance Customer Value Broadband ServicesSingle Value-Added Application FY2023Basic ConnectivityEssential Digital Services ~$500 FY2026 ~$700 FY2024 “IT Simplified”Expanded withUltra-High-Speed broadband, IT Support, and Router Bundles Integrated Business SolutionsFY2025 ~$900“Biz in Motion”Expanded with Smart Office, Security, and Digital OperationsSolutions Smart Workplace Industry-Specific Digitalisation Solution Digital Payment AI-Powered Solutions $1,000+ LegalHR SalesOperations “HKBN AI+”100+ Pre-BuiltAI Agents and SkillsCustomer-Centric, Continuously Expanding Diversified Services to Drive Steady Growth in ARPU Cybersecurity FinanceMarketing 16
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NetworkHighly Reliable, Low-LatencyEnterprise-Grade Connectivity System IntegrationIndustry Application Development and Integration, Translating Technology and Delivery Capabilities Into Business Value Computing PowerGPU and Edge Computing Supporting Everything from Training to Real-Time Inference SecurityEnd-to-End Defence from Network and Data to Application Layers DataHigh-Quality Data Governance, Integration, Analytics and Backup CloudFlexible Management of Hybrid Multi-Cloud Architectures Across Public and Private Clouds Established in 2025, iTEA Brings 25 Leading Technology Solution Providers Together, Including 14 Exclusive Distribution PartnersLeveraging HKBN’s Core Network and System Integration Capabilities, iTEA Has Secured Contracts Valued at $130M, Representing a 3x YoY Growth HKBN InnoTech Ecosystem Alliance (iTEA):Building an AI+ Ecosystem Together 17
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Chinese Mainland and Macao Presence:Cultivating Regional Markets, Driving Customer Growth Across Northern and Northeastern China Across Eastern and Central China Across the Greater Bay Area and Southwestern China Seizing Opportunities from Enterprises Expanding Northward and Overseas to Acquire High-Value CustomersHong Kong Enterprises Expanding Northward: Deepening Customer Penetration and Capturing Northward Expansion OpportunitiesMultinational Corporations in Chinese Mainland: Increasing the Proportion of High-Value Enterprise CustomersHigh-Value Customer Segments Expansion: Focusing on Gaming Industry, Government, Banking and UtilitiesStrengthening Presence in Macao: Consolidating Regional Leadership and Enhancing Market InfluenceChinese Mainland Enterprises Going Global: Seizing the Wave of Expansion to Unlock New Growth in Cross-Border Business 18 Chinese Mainland and Macao Technology Business FY26 Revenue$1,200M ▲12.8%
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Driven by the Global AI Wave: Significant Growth in International Connectivity Demands 19 The Global AI Wave Drives Cross-Regional Data Traffic Surge, Pushing Enterprise Demands for International Connectivity Business CoverageOver 20Countries and RegionsSupporting Enterprise Cross-Border and AI Application Deployment YoY Growth29%Reflecting Strong Cross-Border Connectivity Capabilities International Data Revenue $316M 20252026 +202%Hyperscale Cloud Service ProvidersTotal Contract Value in FY26 $63M E-commerce & Tech Companies Financial Info Platforms Manufacturers and Factories Import and Export Trading Mobile Gaming & Game Publishing FinTech
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Residential Solutions
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$2,418M▲ YoY +1.2% 2.69M▲ YoY +1.8% $218▲ YoY +0.5% 928K▲ YoY +2.2% ▲ YoY Improved by 14% Residential RevenueResidentialARPH*TotalHomes Passed Broadband SubscriptionsCustomer Loyalty *Average revenue per household. Residential Business: Steady Revenue Growth, Continued Growth in Broadband Subscriptions 21
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80%2pp Ahead of the Market* * Based on OFCA figures released in Jun 2026: https://www.ofca.gov.hk/filemanager/ofca/tc/content_293/cus_isp_c.pdf ▲ YoY +123%FibreBroadband CustomersCopperBroadband Customers Customers Upgraded from 100Mbps Copper Broadband to 1Gbps Fibre Broadband Exceeded 35K “Infinite-Play” CustomersSubscribing to 4+ Services 33% vs23% 31%Fibre Broadband Customers Generate Higher Revenue than Copper Broadband Customers1Gbps or Above Penetration Rate “Fibre In, Copper Out” Benefits of “Fibre In, Copper Out”Higher Average Customer Value Strengthening Customer Loyalty Market-Leading Fibre Penetration “Fibre In, Copper Out” Delivers Results: Revenue on an Upward Trend, Higher Customer Revenue 22
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Leading High-Speed Broadband Penetration:Expanding Customer Base and Sustained Revenue Growth 23 133K▲ YoY +40%Market-Leading Position ~40%▲ YoY +59% “Infinite-Play” CustomersSubscribing to 4+ Services GigaFast BroadbandCustomersFibre Broadband Customers 46% vs33% GigaFast Broadband Customers Generate Higher Revenue than Fibre Broadband Customers45%Strong Growth in 2Gbps or Above GigaFast Broadband AdoptionGigaFast Broadband Subscriptions Strong GigaFast Broadband Adoption Select2 out of Every 5 New Customers Benefits of GigaFast Broadband Strengthening Customer Loyalty Driving Higher Average Customer Revenue
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Comprehensive High-Speed Broadband Upgrade:Leading the Ultra-Fast Era with Premium Priority Experience 24 World's First Triple GuaranteeGigaFastPriorityFibre-to-the-Room (FTTR)High-Speed GuaranteeLow-Latency GuaranteeChinese Mainland Connectivity Latency Guarantee Premium Priority NetworkPriority Customer ServiceSame-Day Repair Commitment5G Broadband Dual Assurance Providing premium service experience for 5Gbps and 10Gbps broadband customers to strengthen customer loyalty Extending fibre connectivity into rooms, delivering high-speed, stable and low-latency experience Enhanced External Network ConnectivityUpgraded Indoor Connectivity ExperienceEnhanced Overall Service Value Ensuring stableandseamlessconnectivity to meet the demands of daily work and entertainment
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Operational Excellence, Quality Service:Comprehensive Experience Upgrade, Enhanced Customer Loyalty 25 Service Quality Improved, Customer Complaints Down18% YoY Customer Satisfaction Up6ppPortion of customers who like HKBN Customer Loyalty Up14% YoY Store Network Expansion to Reach Potential Customers Enhanced Support for Safeguarding Seniors through Technology Intelligent Diagnostics and Proactive Monitoring for Rapid Identification and Follow-Up on Network Issues 5G Broadband Resilience Support,Ensuring Uninterrupted Service
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“Infinite-Play” Value-Added Services: Driving Business Growth through Diverse Applications 26 Mobile Servicese-Commerce Shopping AI ApplicationsWi-Fi SolutionsHealthcare Services Travel & Home InsuranceGlobal SIM OTT Streaming PlatformsNew Subscriptions Rising Popularity ofChinese MainlandContent DrivingNew SubscriptionsSenior Market Business GrowthTotal Contract Value+114%2H FY2026 vs1H FY2026 +24% Residential Broadband Customers Subscribing to 4+ “Infinite-Play” Services +32K +6%YoY YoY OTT&Music EntertainmentVoice Communications Premium Home Network Solutions High-Speed Fibre BroadbandCybersecurity Gerontechnology
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Deepening Collaboration with CMHK:A Powerful Alliance Driving Broadband Growth 27 Leveraging CMHK’s Strong Mobile Customer Base to Drive Residential Broadband Business Growth Rising demands among tenants and new occupants for 5G plug-and-play services, expected to drive 5G residential broadband growth CMHK’s Mobile Customer Base 6M YoY +5.1x YoY+9% Exchange of Network Resources and Product TechnologyNew Sales of HKBN Residential Broadband Resold by CMHK High-Speed Broadband Penetration Rate 5G Broadband Market Demand Reaching New Customer Segments Driving Cross-Selling Boosting Residential Broadband Revenue Growth
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FY26Second Interim Results AnnouncementEmpowering LivesReshaping BusinessesInspiring Innovations © HKBN Ltd. 2026. All Rights Reserved.
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