Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoev er for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HKT Trust (a trust constituted on 7 November 2011 under the laws of Hong Kong and managed by HKT Management Limited) and HKT Limited (incorporated in the Cayman Islands with limited liability) (Stock Code: 06823) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The directors of HKT Management Limited (in its capacity as the trustee -manager of the HKT Trust) (the “Trustee-Manager”) and HKT Limited (the “Company” or “HKT”) are pleased to announce the unaudited consolidated results of the HKT Trust and of the Company together with the Company’s subsidiaries (collectively the “Group”) for the six months ended 30 June 20 26. This condensed consolidated interim financial information has not been audited, but has been reviewed by the Audit Committee of the Trustee- Manager and of the Company and, in accordance with the Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Hong Kong Institute of Certified Public Accountants, by the Group’s independent auditor, PricewaterhouseCoopers. • Consolidated market leadership in broadband, with FTTH connections growing by 4% to 1.101 million; continued customer upgrades driving 68% expansion in 2500M customer segment; • 5G customer base expanded by 16% to 2.2 million ; together with sustained growth in roaming revenue, drove 5% increase in Mobile services revenue; • Enterprise business maintained strong momentum, delivering 8% revenue growth in the first half of 2026; secured new project wins worth more than HK$2.2 billion, underpinning further growth; • Total revenue increased by 8% to HK$18,685 million; total revenue excluding Mobile product sales rose by 3% to HK$16,831 million; • Total EBITDA grew by 3% to HK$ 6,586 million, bolstered by efficiency and productivity improvements resulting from AI adoption; • Adjusted funds flow also climbed by 3% to HK$2,639 million; • Profit attributable to holders of Share Stapled Units increased by 4% to HK$ 2,153 million; basic earnings per Share Stapled Unit was 28.41 HK cents; and • Interim distribution per Share Stapled Unit of 34.80 HK cents.
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2 LETTER TO HOLDERS OF SHARE STAPLED UNITS Dear Holders of Share Stapled Units, During the first half of 2026, Hong Kong ’s economy continued to improve amidst a gradually strengthening business environment on the back of more positive consumer sentiment, though this momentum was tempered by geopolitical turbulence. Against this backdrop, HKT once again demonstrated resilienc e, underpinned by our artificial intelligence (“AI”)-ready infrastructure, disciplined execution and relentless focus on innovation. Our comprehensive business portfolio and strong operational capabilities fuelled further growth across our key business segments, while our emphasis on cost efficiency and pru dent capital management further strengthened our financial performance, with total revenue expanding by 8% to HK$18,685 million, EBITDA rising by over 3% to HK$6,586 million, and most importantly, adjusted funds flow (“AFF”) increasing by 3% to HK$2,639 million. Unleashing the Power of AI As AI increasingly reshapes industries and customer experiences, HKT is committed to integrating AI into every aspect of its business to capitalise on the opportunities presented by this structural shift. Over the past six months, we have accelerated the incorporation of AI into our network and operational processes, and embedded AI into our services for both consumer and enterprise customers, thereb y enhancing productivity, service quality and creating new growth opportunities. We envision the central role that HKT can play in unleashing the power of AI by harnessing our existing assets and capabilities. A key to this is our unparalleled network infrastructure consisting of fibre rich coverage across Hong Kong and extensive international subsea cable portfolio which we will continue to invest in through pre- funded capital expenditure from anchor customers to support the increasing capacity requirements of AI data centres. HKT will also play an aggregator role to offer a trusted single AI interface to consumers and SMEs enabling us to retain a direct customer relationship to drive average revenue per user (“ARPU”) uplift and customer stickiness. Finally, HKT will be an enabl er of AI-powered solutions to enterprises leveraging the accumulated expertise from our own internal AI deployments. Capturing the Infrastructure Supercycle At the core of HKT’s AI ecosystem lies its advanced network infrastructure. Building on our territory-wide 100G network, as well as our existing 800G AI Superhighway, we recently introduced an ultra -low latency 3.2Tbps AI Data Centre Inter-connect (“DCI”) Superhighway linking major data centre clusters in Hong Kong – the first of its kind in the city. This 3.2Tbps AI DCI Superhighway compr ises advanced hollow core fibre upgrades connecting the Lok Ma Chau Loop cluster with the Tseung Kwan O cluster, and will be further extended to Fo Tan and Kwai Chung as well as to the Sandy Ridge cluster once it becomes operational. This will offer AI infrastructure providers and academic institutions, such as universities and research labs, ultra - fast and seamless access to computing resources across multiple data centres to meet the demands of next - generation AI workloads. Within our mobile network, HKT is leveraging AI to automate network performance assurance during major events as well as real -time, scenario-based automated traffic balancing to mitigate periods of exceptionally high demand, safeguard network stability, and ensure a consistently superior customer experience. HKT has also deployed AI-assisted optimisation at all MTR stations, significantly improving 5G network performance. The quality of our network infrastructure was once again recognised through our success at the recent Ookla® Speedtest® Awards, where HKT was awarded the Best and Fastest Fixed Network in Hong Kong as well as East Asia. We were also designated as Hong Kong’s Most Consistent Fixed Network, underscoring our unwavering commitment to network excellence, reliability and superior customer experience.
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3 LETTER TO HOLDERS OF SHARE STAPLED UNITS (Continued) Delivering a Premium Consumer Experience As AI-powered digital services become increasingly prevalent, consumers place even greater value on access to HKT’s advanced, secure and reliable network infrastructure. During the first half of 2026, we continued to upgrade customers to our 2500M broadband service, with the customer subscriptions growing by 68% year- on-year and generating an ARPU uplift of around HK$ 70. Penetration of the 2500M customer segment has now reached almost 12 % of our fibre -to-the-home (“FTTH”) base. Our 5G mobile customer base also continued to expand, increasing by 16% year-on-year to 2.2 million users as at the end of June 2026, with a growing number also using our high-quality roaming services to support their needs while travelling. In order to further elevate the consumer experience, we have paired our consumer offering with 1O1O’s cus tomer service excellence to offer the 1O1O HOME premium service. This customer segment grew by 26% year-on- year, highlighting the appeal of our premium proposition and smart lifestyle experience. We also recently launched HKT.AI, which is a single, unified platform, providing consumers with access to all of the leading third party AI models in the market. This will strengthen HKT’s relationship with its customers, providing a compelling AI proposition that can be bundled with other services to drive ARPU uplift and enhance customer stickiness. The FIFA World Cup 2026 ™ recently concluded, and our exclusive broadcast was one of the highlights of the first half of 2026. The event provided opportunities to up -sell and cross -sell tailored promotions, while attracting new customers, particularly non -HKT customers, through sp ecially designed World Cup content and service offerings, showcasing the strength of our quad-play capabilities. These efforts will generate further positive spillover effects across our pay TV, mobile, and broadband businesses. Now TV has also successfully extended its exclusive Premier League broadcasting right to 2031, reinforcing our commitment to delivering world-class football coverage to customers. The 1O1O HOME premium service and recent FIFA World Cup 2026™ event offerings are examples of some of our upselling and cross -selling initiatives. By harnessing our unique data assets and enhanced AI capabilities, we continue to strengthen our ability to deliver hyper -personalised offerings to consumers, thereby improving the effectiveness and conversion rates of these initiatives. This strategy has yielded significant results, with the number of customers using multiple HKT services continuing to grow; subscriptions to three or mo re products recorded a year -on-year increase of 20%. As we further enrich our service offerings, including through The Club, we are confident that customers will continue to choose HKT for more of their digital lifestyle services. Driving AI Transformation Across Enterprise Customers HKT continues to assist enterprise customers with their AI transformation through the implementation of our AI-powered solutions across multiple industries, helping our clients to elevate the customer experience, enhance productivity and automate operation s. During the past six months, we built AI security operation centres for top-tier customers in the banking, finance and retail sectors, providing proactive threat detection and response capabilities. We also deployed AI Firewall solutions to more than 500 SME customers, further reinforcing their cybersecurity resilience. Additionally, we deployed sector-specific AI applications, including AI-powered contact centre solutions for clients in the insurance and community service sectors, an AI-powered marketing video scanning solution for a healthcare group to streamline compliance checks, and AI -powered workflow automation solutions supporting various government departments. These AI transformation solutions, together with numerous other mission-critical enterprise solutions, helped us deliver 8% growth in Enterprise revenue during the period as well as secure multiple project wins in the first half of 2026, with the total contract value exceeding HK$2.2 billion.
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4 LETTER TO HOLDERS OF SHARE STAPLED UNITS (Continued) AI is also driving growing demand for international connectivity and enterprise solutions beyond Hong Kong. Given Hong Kong’s crucial role as a key international gateway, we have been supporting numerous global OTT (“over-the-top”) players – both from Chinese Mainland and the West – in expanding their global footprint as they enhance the interconnectivity of their data centre infrastructure across the region. I would like to thank our holders of Share Stapled Units for their continued support, and the team for delivering such a strong start to the year. Barring any unforeseen circumstances, I am confident that the momentum seen in our business will drive strong results for the full year. Susanna Hui Group Managing Director Hong Kong, 29 July 2026
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5 FINANCIAL REVIEW BY SEGMENT For the six months ended HK$ million 30 Jun 2025 31 Dec 2025 30 Jun 2026 Better/ (Worse) y-o-y Revenue TSS 12,527 12,601 12,913 3% - Local TSS Services 8,714 9,071 9,014 3% - International Telecommunications Services 3,813 3,530 3,899 2% Mobile 5,200 7,494 6,248 20% - Mobile Services 4,189 4,968 4,394 5% - Mobile Product Sales 1,011 2,526 1,854 83% Other Businesses 570 311 568 – Eliminations (975) (1,175) (1,044) (7)% Total revenue 17,322 19,231 18,685 8% Total revenue (excluding Mobile Product Sales) 16,311 16,705 16,831 3% Cost of sales (9,021) (10,119) (10,248) (14)% Net operating costs before depreciation, amortisation, and gains on disposal of property, plant and equipment and right-of-use assets (1,921) (1,258) (1,851) 4% EBITDA1 TSS 4,421 5,300 4,508 2% Mobile 2,412 3,156 2,532 5% - Mobile Services 2,409 3,151 2,527 5% - Mobile Product Sales 3 5 5 67% Other Businesses (453) (602) (454) – Total EBITDA1 6,380 7,854 6,586 3% TSS EBITDA1 Margin 35% 42% 35% Mobile EBITDA1 Margin 46% 42% 41% - Mobile Services EBITDA1 Margin 58% 63% 58% Total EBITDA1 Margin 37% 41% 35% Total EBITDA1 Margin (excluding Mobile Product Sales) 39% 47% 39% Depreciation and amortisation (2,757) (3,080) (2,984) (8)% Net gains on disposal of property, plant and equipment and right-of-use assets 1 4 2 100% Net other gains/(losses) & others 4 57 (25) NA Net finance costs (885) (835) (768) 13% Share of results of associates and joint ventures (31) (58) (14) 55% Profit before income tax 2,712 3,942 2,797 3%
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6 ADJUSTED FUNDS FLOW3 For the six months ended HK$ million 30 Jun 2025 31 Dec 2025 30 Jun 2026 Better/ (Worse) y-o-y Total EBITDA1 6,380 7,854 6,586 3% Less cash outflows in respect of capital expenditures, customer acquisition costs and licence fees2: Capital expenditures (1,008) (969) (981) 3% Customer acquisition costs and licence fees (686) (1,126) (805) (17)% Fulfilment costs (320) (367) (344) (8)% Right-of-use assets (710) (633) (603) 15% Adjusted funds flow3 before tax paid, net finance costs paid and changes in working capital 3,656 4,759 3,853 5% Adjusted for: Net finance costs paid (764) (809) (752) 2% Tax payment (196) (34) (445) (127)% Changes in working capital (134) (279) (17) 87% Adjusted funds flow3 2,562 3,637 2,639 3% KEY OPERATING DRIVERS4 30 Jun 31 Dec 30 Jun Better/(Worse) 2025 2025 2026 y-o-y h-o-h Exchange lines in service (’000) 2,070 2,026 2,008 (3)% (1)% Business lines (’000) 1,088 1,069 1,062 (2)% (1)% Residential lines (’000) 982 957 946 (4)% (1)% Total broadband access lines (’000) 1,657 1,661 1,670 1% 1% (Consumer, business and wholesale) Retail consumer broadband access lines (’000) 1,482 1,488 1,497 1% 1% Retail business broadband access lines (’000) 158 156 156 (1)% – Mobile subscribers (’000) 4,875 4,817 4,923 1% 2% Post-paid subscribers (’000) 3,478 3,494 3,522 1% 1% Prepaid subscribers (’000) 1,397 1,323 1,401 – 6% Pay TV installed base (’000) 1,448 1,464 1,490 3% 2% The Club members (’000) 4,070 4,148 4,226 4% 2%
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7 Note 1 EBITDA represents earnings before interest income, finance costs, income tax, depreciation and amortisation, gains/losses on disposal of property, plant and equipment, interests in leasehold land, right-of-use assets and intangible assets , net other gains/losses, losses on property, plant and equipment, restructuring costs, impairment losses on goodwill, tangible and intangible assets and interests in associates and joint ventures, and the Group’s share of results of associates and joint ventures. While EBITDA is commonly used in the telecommunications industry worldwide as an indicator of operating performance, leverage and liquidity, it is not presented as a measure of operating performance in accordance with the HKFRS Accounting Standards and should not be considered as representing net cash flows from operating activities. The computation of the Group’s EBITDA may not be comparable to similarly titled measures of other companies. Note 2 Group capital expenditures represent additions to property, plant and equipment and interests in leasehold land. Fulfilment costs and right -of-use assets are considered as part of customer acquisition costs and capital expenditures, respectively, for the p urpose of adjusted funds flow calculation. Note 3 Adjusted funds flow is defined as EBITDA less capital expenditures, customer acquisition costs and licence fees paid, taxes paid, finance costs and interest expense paid, and adjusted for interest income received and changes in working capital. It is not presented as a measure of leverage or liquidity in accordance with HKFRS Accounting Standards and should not be considered as representing net cash flows or any other similar measures derived in accordance with HKFRS Accounting Standards, or an alternative to cash flow from operations or a measure of liquidity. The Group’s adjusted funds flow is computed in accordance with the above definition using financial information derived from the Group’s unaudited condensed consolidated interim financial information. The adjusted funds flow may be used for debt repayment and the repurchase of Share Stapled Units. Note 4 Figures are stated as at the period end. Note 5 Gross debt refers to the principal amount of short-term borrowings and long-term borrowings.
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8 Telecommunications Services For the six months ended HK$ million 30 Jun 2025 31 Dec 2025 30 Jun 2026 Better/ (Worse) y-o-y TSS Revenue Local TSS Services 8,714 9,071 9,014 3% International Telecommunications Services 3,813 3,530 3,899 2% ¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯ Total TSS Revenue 12,527 12,601 12,913 3% Cost of sales (7,052) (6,602) (7,404) (5)% Operating costs before depreciation and amortisation (1,054) (699) (1,001) 5% ¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯ Total TSS EBITDA1 4,421 5,300 4,508 2% ========= ========= ========= TSS EBITDA1 margin 35% 42% 35% ========= ========= ========= Revenue from Local TSS Services grew by 3% to HK$9,014 million for the six months ended 30 June 2026, underpinned by a 6% increase in Local Data Services revenue to HK$ 7,265 million. Local Data Services constitutes the largest component of the Local TSS Services segment, accounting for 81% of revenue. Pay TV Services revenue rose to HK$1,169 million, while Local Telephony Services revenue was HK$ 853 million. During the period, revenue from International Telecommunications Services increased by 2% to HK$3,899 million. As a result, total TSS revenue expanded by 3% to HK$12,913 million. Local Data Services. Revenue from Local Data Services, which comprises broadband revenue and local data revenue, increased by 6% year-on-year to HK$7,265 million for the six months ended 30 June 2026. Broadband revenue grew by 3% during the period, underpinned by sustained demand for our high-speed, ultra- low latency fibre services as households increasingly require high-bandwidth and enhanced network reliability to support digital entertainment, hybrid work, smart home applications and AI -powered services. HKT’s comprehensive broadband portfolio, spanning 1G to 50G fibre services, continues to deliver seamless, high- bandwidth and uninterrupted connectivity to address the evolving digital needs of households across Hong Kong. Our FTTH connections reached 1.101 million at the end of June 2026, representing a net increase of 46,000 or 4% growth from a year earlier and accounting for 74% of our consumer broadband base of 1.4 97 million. As AI-powered digital services become increasingly prevalent, consumers place even greater value on access to HKT’s advanced, secure and reliable network infrastructure. During the first half of 2026, we continued to upgrade customers to our 2500M broadband service , with this customer segment growing by 68% year -on- year to 129,00 0 subscribers and generating an ARPU uplift of around HK$70. Penetration of the 2500M customer segment has now reached almost 12% of our FTTH base. In order to further elevate the consumer experience, we have paired our consumer offering with 1O1O ’s customer service excellence to offer the 1O1O HOME premium service. This customer segment grew by 26% year-on-year, highlighting the appeal of our premium proposition and smart lifestyle experience. The quality of our network infrastructure was once again recognised through our success at the recent Ookla® Speedtest® Awards, where HKT was awarded the Best and Fastest Fixed Network in Hong Kong as well as East Asia. We were also designated as Hong Kong’s Most Consistent Fixed Network. These accolades highlight the sustained quality, reliability and performance of our network.
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9 Telecommunications Services (Continued) As a trusted partner to both public and private enterprises, HKT leverages its robust connectivity platform – combined with 5G, IoT, cloud, cybersecurity, data analytics and AI technologies – to provide end -to-end solutions that help enterprises to achieve operational transformation, improve efficiency, and create new value in the rapidly evolving digital economy. Consequently, our enterprise business continued to achieve robust growth in the first half of 2026, with local data revenue increasing by 8% year-on-year. During the period, we delivered a number of key projects. These included the deployment of an integrated 5G telecommunications system for a public hospital, comprising advanced mobile infrastructure, communications systems and a cloud-enabled mobile application platform to support healthcare operations, as well as a fully fibre-optic network with 5G Advanced infrastructure and Wi -Fi solution s for a landmark commercial development in the Central Business District to enhance the digital experience for tenants and visitors. We also completed a network and security modernisation project for a large retail chain with over 180 stores in Hong Kong and Macao, and upgraded a mission-critical communications system for a leading power utility. In addition, we upgraded the critical network infrastructure and implemented modern workspace solutions for numerous customers in the banking and finance sector. HKT continued to expand the adoption of AI-enabled enterprise solutions across a broad range of industries, helping our clients to elevate customer experience, enhance productivity and automate operations. During the first half of the year , we implemented AI security operation centres for top-tier customers in the banking, finance and retail sectors, providing proactive threat detection and response capabilities. We also deployed AI Firewall solutions to more than 500 SME customers , further reinforcing their cybersecurity resilience. Additionally, we delivered a range of industry-specific AI applications, including AI-powered contact centre solutions for clients in the insurance and community service sectors, an AI-powered marketing video scanning solution for a healthcare group to streamline compliance checks, and AI -powered workflow automation solutions supporting various government departments. Beyond Hong Kong, we continued to capture the growth opportunities in Chinese Mainland and the Greater Bay Area (“GBA”) through continuous penetration of our integrated connectivity and digital solutions, driving sustained growth in our business from Chinese Mainland enterprise customers, with revenue expanding by 6% year-on-year. We continued to support Hong Kong enterprises and multinational corporations in expanding their operations across the Chinese Mainland, while assisting Chinese Mainland enterprises pursuing global growth opportunities. These AI deployments, together with our broader portfolio of mission-critical enterprise solutions, helped us secure multiple project wins in the first half of 2026, with the total contract value exceeding HK$2.2 billion. Pay TV Services. Pay TV Services revenue increased by 1% to HK$1,169 million for the six months ended 30 June 2026, up from HK$1,160 million a year earlier, despite intense competition from an expanding array of free and paid entertainment services. The FIFA World Cup 2026 ™ recently concluded, and our exclusive broadcast was one of the highlights of the first half of 2026. The event provided opportunities to up -sell and cross -sell tailored promotions , while attracting new customers, particular ly non-HKT customers, through specially designed World Cup content and service offerings, showcasing the strength of our quad-play capabilities. These efforts will generate further positive spillover effects across our pay TV, mobile , and broadband businesses. Recently, Now TV successfully secured an extension of its exclusive Premier League broadcasting rights to 2031, reinforcing our commitment to delivering world-class football coverage to customers. The total installed base of Now TV expand ed by 3% to 1.490 million as at the end of June 2026 , up from 1.448 million a year earlier. The OTT segment grew by 18% year-on-year, highlighting continued demand for flexible, multi-platform content consumption.
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10 Telecommunications Services (Continued) Local Telephony Services. Revenue from Local Telephony Services recorded a decline of 10% to HK$853 million for the six months ended 30 June 2026, compared with HK$953 million a year earlier , reflecting the ongoing migration from traditional voice services to mobile and data offerings, as well as continued softness in the SME market, particularly in the retail and food & beverage sectors. The total number of fixed lines in service decreased to 2.008 million at the end of June 2026 from 2.070 million in the previous year. International Telecommunications Services. Revenue from International Telecommunications Services grew by 2% to HK$3,899 million for the six months ended 30 June 2026, compared with HK$3,813 million for the same period last year. The increase in revenue was driven by higher data and wholesale global voice revenues, alongside growing customer demand for Console Connect, our software defined cloud connectivity platform. In particular, we witnessed healthy growth in demand from Chinese Mainland OTT customers with their revenue growing by over 50%. The TSS business achieved EBITDA growth of 2% year-on-year to HK$ 4,508 million. This growth was fuelled by further improvements in operating efficiency during the period, though it was partially offset by a change in the revenue mix of the TSS business, resulting in an EBITDA margin of 35%.
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11 Mobile For the six months ended HK$ million 30 Jun 2025 31 Dec 2025 30 Jun 2026 Better/ (Worse) y-o-y Mobile Revenue Mobile Services 4,189 4,968 4,394 5% Mobile Product Sales 1,011 2,526 1,854 83% ¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯ Total Mobile Revenue 5,200 7,494 6,248 20% ======== ======== ======== Mobile EBITDA1 Mobile Services 2,409 3,151 2,527 5% Mobile Product Sales 3 5 5 67% ¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯ Total Mobile EBITDA1 2,412 3,156 2,532 5% ======== ======== ======== Mobile EBITDA1 margin 46% 42% 41% Mobile Services EBITDA1 margin 58% 63% 58% ======== ======== ======== Mobile business continued to deliver growth during the six months ended 30 June 2026, with services revenue increasing by 5% to HK$4,394 million, driven by sustained growth in roaming services, an expanding 5G post-paid customer base and increasing demand for mobile solutions from enterprise customers. To meet growing demand for seamless travel connectivity, we continued to enhance our roaming services with innovative features, including travel protection benefits integrated into selected roaming packages. Supported by strong outbound travel demand and i ncreasing visitor arrivals to Hong Kong, our consumer outbound roaming and inbound roaming revenues recorded healthy growth of 11% and 28% respectively in the first half of 2026, resulting in total roaming revenue growth of 8% year-on-year. During the period , we added two destinations to our “Golden Roaming” service , which now covers 10 destinations across the Asia -Pacific region with 13 leading mobile partners. Overall, the Mobile business reported a net gain of 4 4,000 year -on-year in its post -paid customer base , reaching 3.522 million as at the end of June 202 6. This was achieved despite continued intense market competition, particularly in the price-sensitive segment s. The customer base for our core 1O1O and csl segment further expanded by 2% year-on-year during the period. Our 5G mobile customer base also continued to expand, increasing by 16% year-on-year to 2.2 million users as at the end of June 2026, representing 62% of our total post-paid base. Customer retention remained strong during the period, with the post-paid churn rate of our core 1O1O and csl customer base further improving to 0.6%, reflecting the continued effectiveness of our customer engagement and retention strategies, including initiatives offered through The Club. The newly launched HKT.AI should further strengthen the relationship with customers, helping to drive ARPU uplift and customer stickiness. Mobile product sales increased by 83% year-on-year to HK$1,854 million for the six months ended 30 June 2026, driven by higher demand for the latest flagship handsets, which became available towards the end of 2025. Sales were further supported by The Club, which provides customers with a convenient digital shopping experience. Mobile services EBITDA rose by 5% to HK$2,527 million during the period, maintaining a stable EBITDA margin of 58%. Total Mobile EBITDA for the period also increased by 5% to HK$2, 532 million, up from HK$2,412 million a year earlier, resulting in an EBITDA margin of 41% due to the higher contribution from lower-margin Mobile product sales.
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12 Other Businesses Other Businesses primarily comprises businesses including our loyalty platform, The Club, and corporate support functions. These businesses complement our core telecommunications services by strengthening customer engagement and supporting the broader digital lifestyle ecosystem . For the six months ended 30 June 202 6, revenue from Other Businesses remained stable at HK$568 million, compared with HK$570 million a year earlier. The Club’s membership base expanded by 4% to 4.23 million in the first half of 2026, up from 4.07 million a year earlier. The platform continued to expand its ecosystem of merchant offerings across a broad range of lifestyle categories, while further deepening customer engagement through its AI-powered digital ecosystem, leveraging real-time social listening, autonomous content generation and hyper-personalised communications. By combining telco insights, localisation capabilities and merchant integration, The Club delivers highly targeted experiences that enhance member engagement, customer loyalty and merchant values. The Club also recently launched an AI CMO marketing engine that can assist our over 2,000 merchant brands to deepen their engagement with customers. At Tap & Go, we have revitalised the service through the launch of a pay-safe, Single Use Card that has a number of unique features to ensure card users do not suffer unnecessary losses from online shopping scams, stolen credit card details and AI agent hallucinations. Our healthtech platform, DrGo, recorded a 2% year-on-year rise in registered users , reaching 416,000 as at the end of June 202 6. Following the launch of the DrGo One Wellness subscription service in 2025, we introduced the DrGo Travel Pass to further enhance customer retention and lifetime value through an integrated health and travel proposition. The service combines telemedicine consultations, overseas and GBA medical support, worldwide travel insurance and 24/7 emergency assistance, offering travellers greater convenience, more comprehensive coverage, and peace of mind. Eliminations Eliminations were HK$ 1,044 million for the six months ended 30 June 20 26, compared with HK$975 million a year earlier, reflecting the increased collaboration across HKT’s business segments. Cost of Sales Cost of sales for the six months ended 30 June 2026 increased by 14% year-on-year to HK$10,248 million, reflecting a change in the revenue mix and the significant growth in Mobile product sales during the period. General and Administrative Expenses HKT has been reshaping its workflows and network management through AI deployment, yielding notable enhancements in operating efficiency and cost optimisation . Together with the Group’s continued efforts in IT platform modernisation, the overall net operating costs before depreciation, amortisation, and gains on disposal of property, plant and equipment and right -of-use assets (“operating costs”) improved by 4% year- on-year to HK$ 1,851 million for the six months ended 30 June 202 6. As such, overall operating costs -to- revenue ratio for the period reached 9.9%, compared with 11.1% a year earlier. For the six months ended 30 June 202 6, total depreciation and amortisation expenses increased by 8% to HK$2,984 million. Lower depreciation expenses reflected our recent level of capital expenditure spending , while higher amortisation costs are linked to increased investments in research and development and intellectual property for the various diversified enterprise projects including AI, automation and cybersecurity. As a result of the above, general and administrative expenses increased by 3% to HK$4,833 million for the six months ended 30 June 2026, compared with HK$4,677 million a year earlier.
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13 EBITDA1 Reflecting the growth in TSS and Mobile services revenue and further operating efficiencies, total EBITDA excluding Mobile product sales for the six months ended 30 June 2026 increased by 3% to HK$6,581 million with a margin of 39%. Total EBITDA also increased by 3% year-on-year to HK$6,586 million with a margin of 35% during the period. The economic benefits of AI have yet to be fully realised, as the dual costs associated with the new platform and parallel operation of the legacy system were incurred. These benefits are expected to materialise progressively as the transition is completed and AI-enabled revenue growth gains momentum. Net Finance Costs Net finance costs for the six months ended 30 June 202 6 decreased by 13% to HK$ 768 million from HK$885 million a year earlier, driven by the downward trend in HIBOR during the period. The average cost of debt was 3.75% during the period, compared to 3.96% a year earlier. Income Tax Income tax expense for the six months ended 30 June 20 26 was HK$ 411 million, compared with HK$414 million a year earlier. The effective tax rate for the period remained relatively steady at 14.7%, compared with 15.3% for the same period last year. Profit Attributable to Non-controlling Interests Profit attributable to non-controlling interests of HK$233 million (30 June 2025: HK$228 million) comprised the net profits/losses attributable to the non-controlling shareholders of the Group’s subsidiaries. Profit Attributable to Holders of Share Stapled Units/Shares of the Company Profit attributable to holders of Share Stapled Units/shares of the Company for the six months ended 30 June 2026 increased by 4% to HK$2,153 million (30 June 2025: HK$2,070 million). LIQUIDITY AND CAPITAL RESOURCES The Group actively and regularly reviews and manages its capital structure to maintain a balance between shareholder return and sound capital position. Adjustments are made, when necessary, to maintain an optimal capital structure in light of changes in economic conditions and to reduce the cost of capital. In June 2026, HKT issued US$650 million 10-year senior unsecured notes under the US$3 billion guaranteed medium term note programme to pre-finance the US$750 million 10-year senior unsecured notes due in July. As a result, HKT’s gross debt 5 increased to HK$48,161 million as at 30 June 20 26 (31 December 20 25: HK$4 4,750 million). Cash and short -term deposits increased to HK$3,227 million as at 30 June 20 26 (31 December 2025: HK$ 2,432 million). HKT’s gross debt 5 to total assets was 39% as at 30 June 2026 (31 December 2025: 37%). As at 30 June 2026, HKT had ample liquidity in the form of banking facilities totalling HK$47,594 million, of which HK$23,328 million remained undrawn.
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14 CREDIT RATINGS OF HONG KONG TELECOMMUNICATIONS (HKT) LIMITED As at 30 June 2026, Hong Kong Telecommunications (HKT) Limited, an indirect wholly -owned subsidiary of the Company, had investment grade ratings with Moody’s Investors Service Hong Kong Limited (Baa2) and S&P Global Ratings (BBB). CAPITAL EXPENDITURE2 Capital expenditure including capitali sed interest for the six months ended 30 June 2026 was HK$1,042 million (30 June 2025: HK$1,075 million). Capital expenditure relative to revenue was 5.6% for the six months ended 30 June 2026 (30 June 2025: 6.2%). Capital expenditure for HKT’s Mobile business was 2% lower during the period, reflecting the efficiency gains from capacity upgrades and network maintenance. TSS capital expenditure was 3% lower during the period, with investments largely to support growing demand for our integrated fixed -mobile solutions for enterprise customers as well as AI related network infrastructure. HKT will continue to invest in further upgrading its network infrastructure and building digital capabilities to support its existing businesses and enable its growth in new areas , with pre -funding support from anchor customers and taking into account the prevailing market conditions using assessment criteria including internal rate of return, net present value and payback period. ADJUSTED FUNDS FLOW3 AFF increased by 3% to HK$ 2,639 million for the six months ended 30 June 202 6, up from HK$2,562 million for the six months ended 30 June 2025. Notably, our operating AFF in the first half of 2026 increased by 5% driven by the 3% expansion in EBITDA, disciplined capital expenditure investments and lower right -of-use assets payments. These positive factors were partially offset by increases in customer acquisition costs and fulfilment costs to serve our growing base of consumer and enterprise customers. Benefitting from the downward trend in HIBOR, our net finance costs paid declined by 2% year-on-year. After accounting for higher tax payments and continuous improvement in working capital management, total AFF increased by 3% during the period. The amounts presented in the AFF calculation represent the respective cash flows to the Group during the period, which may be different from the related corresponding amounts recognised in the consolidated income statement due to various reasons such as non-cash items recognised in the consolidated income statement and timing difference between accounting recognition and actual cash flows.
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15 HEDGING Market risk arises from foreign currency and interest rate exposure related to investments and financing. As a matter of policy, HKT continues to manage the market risk directly relating to its operations and financing and does not undertake any speculative derivative trading activities. The Finance and Management Committee, a sub -committee of the Executive Committee of the board of directors of the Company, determines the appropriate risk management activities with the aim of prudently managing the market risk associated with transactions undertaken in the normal course of the Group’s business. All treasury risk management activities are carried out in accordance with polic ies and guidelines approved by the Finance and Management Committee, which are reviewed on a regular basis. More than three quarters of HKT’s consolidated revenue and costs are denominated in Hong Kong dollars. For those operations with revenues denominated in foreign currencies, the related costs and expenses are usually denominated in the same foreign currencies and hence provide a n atural hedge against each other. Therefore, the Group is not exposed to significant foreign currency fluctuation risk from operations. A significant portion of the Group’s financing is denominated in foreign currencies including United States dollars. Accordingly, the Group has entered into forward and swap contracts in order to manage its exposure to adverse fluctuations in foreign currency exchange rates and interest rates. These instruments are executed with creditworthy financial institutions. As at 30 June 2026, the majority of the forward and swap contracts were designated as cash flow hedges for the related financing of the Group. As a result, the impact of these operational and financial risks to HKT is considered not material. CHARGE ON ASSETS As at 30 June 2026, no assets of the Group (31 December 2025: nil) were pledged to secure loans and banking facilities of the Group. CONTINGENT LIABILITIES As at As at 31 Dec 2025 30 Jun 2026 HK$ million (Audited) (Unaudited) Performance guarantees 883 846 Others 2 1 885 847 The Group is subject to certain corporate guarantee obligations to guarantee the performance of its subsidiaries in the normal course of their businesses. The amount of liabilities arising from such obligations, if any, cannot be ascertained but the directors are of the opinion that any resulting liability w ill not materially affect the financial position of the Group. HUMAN RESOURCES HKT had over 12,600 employees as at 30 June 2026 (30 June 2025: 12,500) located in 22 countries and cities. About 64% of these employees work in Hong Kong and the others are based mainly in Chinese Mainland, the United States, the United Kingdom and the Philippines. HKT has established performance -based bonus and incentive schemes designed to motivate and reward employees at all levels to achieve business performance targets. Payment of performance bonuses is generally based on achievement of revenue, EBITDA and free cash flow targets for HKT as a whole and for each of the individual business units and performance ratings of employees.
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16 INTERIM DIVIDEND/DISTRIBUTION The board of directors of the Trustee -Manager declared an interim distribution by the HKT Trust in respect of the Share Stapled Units, of 34.80 HK cents per Share Stapled Unit (after deduction of any operating expenses permissible under the trust deed dated 7 November 2011 constituting the HKT Trust (the “Trust Deed”)), in respect of the six months ended 30 June 2026 (and in order to enable the HKT Trust to pay that distribution, the board of directors of the Company declare d an interim dividend in respect of the ordinary shares in the Company held by the Trustee -Manager, of 34.80 HK cents per ordinary share, in respect of the same period) to holders of Share Stapled Units. The board of directors of the Trustee-Manager has confirmed, in accordance with the Trust Deed, that (i) the auditor of the Group has performed limited assurance procedures in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information issued by the Hong Kong Institute of Certified Public Accountants to review and verify the Trustee-Manager’s calculation of the above distribution entitlement per Share Stapled Unit and (ii) having made all reasonable enquiries, immediately after making t he above distribution to the registered unitholders of the HKT Trust, the Trustee-Manager will be able to fulfil, from the Trust Property (as defined in the Trust Deed), the liabilities of the HKT Trust as they fall due. CLOSURE OF BOOKS The record date for the interim distribution will be Tuesday, 18 August 2026. The register of registered holders of Share Stapled Units, the register of holders of units, the principal and Hong Kong branch registers of members of the Company and the register of beneficial interests as maintained by the Trustee -Manager and the Company in accordance with the provisions of the Trust Deed will all be closed from Monday, 17 August 2026 to Tuesday, 18 August 2026 (both days inclusive), in order to determine entitlements to the interim distribution. During such period, no transfer of Share Stapled Units will be effected. In order to qualify for the interim distribution, all transfers of Share Stapled Units accompani ed by the relevant certificates in respect of the Share Stapled Units must be lodged with the Share Stapled Units Registrar, Computershare Hong Kong Investor Services Limited, Transfer Office, Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong, for registration no later than 4.30pm on Friday, 14 August 2026. Distribution warrants will be d espatched to holders of Share Stapled Units on or around Thursday, 3 September 2026. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES During the six months ended 30 June 2026, none of the HKT Trust (including the Trustee -Manager), the Company or the Company’s subsidiaries purchased, sold or redeemed any Share Stapled Units. AUDIT COMMITTEE The Trustee-Manager’s Audit Committee and the Company’s Audit Committee have reviewed the accounting policies adopted by the Group and the Trustee -Manager, the unaudited condensed consolidated interim financial information of the HKT Trust and HKT Limited for the six months ended 30 June 2026 and the unaudited condensed interim financial information of the Trustee-Manager for the same period. Such financial information of the HKT Trust and HKT Limited and of the Trustee -Manager has not been audited but ha s been reviewed by the independent auditor of the Trustee-Manager and the Company.
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17 CORPORATE GOVERNANCE CODE The HKT Trust, the Trustee -Manager and the Company are committed to maintaining a high standard of corporate governance, the principles of which serve to uphold a high standard of ethics, transparency, responsibility and integrity in all aspects of their businesses, and to ensure that their affairs are conducted in accordance with applicable laws and regulations. The HKT Trust and the Company have applied the principles, and complied with all relevant code provisions of the Corporate Governance Code (the “CG Code”) in each case as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the six months ended 30 June 2026, save and except for the code provisions set out below. The requirement to establish a separate Remuneration Committee with written terms of reference for the Trustee -Manager under the code provision E.1.2 of the CG Code is not relevant to the Trustee-Manager as its directors are not entitled to any remuneration under the Trust Deed, and therefore has not been complied with. In addition, given the unique circumstances of the HKT Trust i.e., the fact that the Trust Deed requires that the directors of the Company and the directors of the Trustee -Manager must always be the same individuals, the establishment of a separate Nomination Committee with written terms of reference for the Trustee-Manager as required by code provision B.3.1 of the CG Code is not relevant to the Trustee-Manager, and therefore has not been complied with. PUBLICATION OF RESULTS ANNOUNCEMENT AND INTERIM REPORT This announcement is published on the websites of the Company ( www.hkt.com/ir) and Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk). The 2026 interim report will be despatched to holders of Share Stapled Units and available on the above websites in due course. By order of the boards of HKT Management Limited and HKT Limited Cheung Hok Chee, Vanessa Group General Counsel and Company Secretary Hong Kong, 29 July 2026
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18 CONSOLIDATED INCOME STATEMENT OF HKT TRUST AND OF HKT LIMITED For the six months ended 30 June 2026 (In HK$ million except for earnings per Share Stapled Unit/share of the Company) 2025 2026 Note(s) (Unaudited) (Unaudited) Revenue 2 17,322 18,685 Cost of sales (9,021) (10,248) General and administrative expenses (4,677) (4,833) Other gains/(losses), net 4 (25) Finance costs, net (885) (768) Share of results of associates (29) (7) Share of results of joint ventures (2) (7) Profit before income tax 2, 3 2,712 2,797 Income tax 4 (414) (411) Profit for the period 2,298 2,386 Profit attributable to: Holders of Share Stapled Units/shares of the Company 2,070 2,153 Non-controlling interests 228 233 Profit for the period 2,298 2,386 Earnings per Share Stapled Unit/share of the Company 6 Basic 27.32 cents 28.41 cents Diluted 27.32 cents 28.40 cents
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19 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF HKT TRUST AND OF HKT LIMITED For the six months ended 30 June 2026 (In HK$ million) 2025 2026 (Unaudited) (Unaudited) Profit for the period 2,298 2,386 Other comprehensive (loss)/income Item that will not be reclassified subsequently to consolidated income statement: Changes in fair value of a financial asset at fair value through other comprehensive income (225) (10) Items that have been reclassified or may be reclassified subsequently to consolidated income statement: Translation exchange differences: - exchange differences on translating foreign operations of subsidiaries - exchange differences on translating foreign operations of joint ventures 127 13 (3) 2 Cash flow hedges: - effective portion of changes in fair value (110) 249 - transfer from equity to consolidated income statement (396) (110) Costs of hedging 5 (25) Share of other comprehensive income/(loss) of an associate 7 (1) Other comprehensive (loss)/income for the period (579) 102 Total comprehensive income for the period 1,719 2,488 Attributable to: Holders of Share Stapled Units/shares of the Company 1,491 2,255 Non-controlling interests 228 233 Total comprehensive income for the period 1,719 2,488
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20 CONSOLIDATED STATEMENT OF FINANCIAL POSITION OF HKT TRUST AND OF HKT LIMITED As at 30 June 2026 (In HK$ million) As at As at 31 December 30 June 2025 2026 Note (Audited) (Unaudited) ASSETS AND LIABILITIES Non-current assets Property, plant and equipment 29,618 30,249 Right-of-use assets 2,553 2,770 Interests in leasehold land 143 139 Goodwill 49,813 49,812 Intangible assets 20,656 21,486 Fulfilment costs 2,298 2,446 Customer acquisition costs 951 876 Contract assets 236 228 Interests in associates 437 438 Interests in joint ventures 507 508 Financial assets at fair value through other comprehensive income 105 95 Financial assets at fair value through profit or loss 21 642 Derivative financial instrument 121 – Deferred income tax assets 731 678 Other non-current assets 843 805 109,033 111,172 Current assets Inventories 1,546 1,699 Prepayments, deposits and other current assets 4,019 4,127 Contract assets 673 744 Trade receivables, net 7 2,549 2,522 Amounts due from related companies 650 655 Financial assets at fair value through profit or loss 21 10 Derivative financial instruments 40 222 Tax recoverable 2 17 Restricted cash 187 177 Short-term deposits 475 480 Cash and cash equivalents 1,957 2,747 12,119 13,400
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21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION OF HKT TRUST AND OF HKT LIMITED (CONTINUED) As at 30 June 2026 (In HK$ million) As at As at 31 December 30 June 2025 2026 Note (Audited) (Unaudited) Current liabilities Short-term borrowings (5,884) (7,721) Trade payables 8 (9,762) (10,752) Accruals and other payables (6,339) (7,124) Derivative financial instruments (17) (30) Carrier licence fee liabilities (384) (387) Amount due to a fellow subsidiary (1,167) (1,519) Amounts due to related companies (84) (78) Advances from customers (313) (309) Contract liabilities (1,659) (1,471) Lease liabilities (891) (924) Current income tax liabilities (1,954) (1,635) (28,454) (31,950) Non-current liabilities Long-term borrowings 9 (38,691) (40,330) Derivative financial instruments (814) (555) Deferred income tax liabilities (6,290) (6,538) Carrier licence fee liabilities (3,494) (3,342) Contract liabilities (937) (1,050) Lease liabilities (1,619) (1,610) Amount due to a non-controlling interest (337) (305) Other long-term liabilities (2,122) (1,867) (54,304) (55,597) Net assets 38,394 37,025 CAPITAL AND RESERVES Share capital 8 8 Reserves 36,813 35,441 Equity attributable to holders of Share Stapled Units/shares of the Company 36,821 35,449 Non-controlling interests 1,573 1,576 Total equity 38,394 37,025
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22 NOTES 1. BASIS OF PREPARATION AND PRESENTATION The HKT Trust (the “HKT Trust”) is constituted by a Hong Kong law governed trust deed as supplemented, amended or substituted from time to time (the “Trust Deed”), entered into between HKT Management Limited (in its capacity as the trustee -manager of the H KT Trust) (the “Trustee - Manager”) and HKT Limited (the “Company”). In accordance with the Trust Deed, the HKT Trust and the Company are each required to prepare their own interim financial information on a consolidated basis. The HKT Trust unaudited condensed consolidated interim financial information for the six months ended 30 June 20 26 comprises the unaudited condensed consolidated interim financial information of the HKT Trust, the Company and its subsidiaries (together the “Group”), and the Group’s interests in associate s and joint ventures. The HKT Limited unaudited condensed consolidated interim financial information for the six months ended 30 June 20 26 comprises the unaudited condensed consolidated interim financial information of the Company and its subsidiaries (together the “HKT Limited Group”) and the HKT Limited Group’s interests in associate s and joint ventures. The HKT Trust controls the Company and the sole activity of the HKT Trust during the six months ended 30 June 2026 was investing in the Company. Therefore, the consolidated financial results and financial position that would be presented in the unaudited condensed consolidated interim financial information of the HKT Trust are identical to the consolidated financial results and financial position of the Company with the only differences being disclosures of the capital of the Company . The directors of the Trustee-Manager and the directors of the Company believe therefore that it is clearer to present the unaudited condensed consolidated interim financial information of the HKT Trust and of the Company together. The unaudited condensed consolidated interim financial information of the HKT Trust and the unaudited condensed consolidated interim financial information of the Company are presented together to the extent they are identical and are hereinafter referred to as the “HKT Trust and HKT Limited unaudited condensed consolidated interim financial information”. The Group and the HKT Limited Group are referred to as the “Groups”. The share stapled units (the “Share Stapled Units”) structure comprises: (a) a unit in the HKT Trust; (b) a beneficial interest in a specifically identified ordinary share in the Company which is “linked” to the unit and held by the Trustee-Manager as legal owner in its capacity as the trustee -manager of the HKT Trust; and (c) a specifically identified preference share in the Company which is “stapled” to the unit. The Share Stapled Units, which are jointly issued by the HKT Trust and the Company, are listed on the Main Board of The Stock Exchange of Hong Kong Limited. The HKT Trust and HKT Limited unaudited condensed consolidated interim financial information has been prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard (“HKAS”) 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”). The HKT Trust and HKT Limited unaudited condensed consolidated interim financial information should be read in conjunction with the annual consolidated financial statements of the HKT Trust and HKT Limited for the year ended 31 December 2025. The HKT Trust and HKT Limited unaudited condensed consolidated interim financial information is presented in Hong Kong dollars, unless otherwise stated. The HKT Trust and HKT Limited unaudited condensed consolidated interim financial information was approved for issue on 29 July 2026.
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23 1. BASIS OF PREPARATION AND PRESENTATION (CONTINUED) The HKT Trust and HKT Limited unaudited condensed consolidated interim financial information has been reviewed by the Audit Committee of the Trustee-Manager and of the Company and, in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the HKICPA, by the Groups’ independent auditor. The financial information of the Trustee-Manager relating to the year ended 31 December 2025 that is included in this interim results announcement as comparative information does not constitute the Trustee-Manager’s statutory annual financial statements for that year but is derived from those financial statements. Further information relating to those statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows: - The Trustee -Manager’s financial statements combined with the HKT Trust and HKT Limited consolidated financial statements for the year ended 31 December 202 5 have been delivered to the Registrar of Companies. - The Trustee-Manager’s auditor has reported on those financial statements of the Trustee-Manager. The auditor’s report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance (Cap. 622). The preparation of the HKT Trust and HKT Limited unaudited condensed consolidated interim financial information in conformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses on a year -to-date basis. Actual results may differ from these estimates. In preparing this unaudited condensed consolidated interim financial information, the significant judgements made by management in applying the Groups’ accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2025. The accounting policies , basis of presentation and methods of computation used in preparing the HKT Trust and HKT Limited unaudited condensed consolidated interim financial information are consistent with those followed in preparing the Groups’ annual consolidated financial statements for the year ended 31 December 20 25, except for the adoption of the following amended HKFRS Accounting Standards which are first effective for accounting periods beginning on or after 1 January 2026 as described below. The following amended HKFRS Accounting Standards are adopted for the financial year beginning 1 January 2026, but have no material effect on the Groups’ reported results and financial position for the current and prior accounting periods. - Hong Kong Financial Reporting Standard (“HKFRS”) 7 (Amendments), Financial Instruments: Disclosures - HKFRS 9 (Amendments), Financial Instruments - Annual Improvements to HKFRS Accounting Standards – Volume 11 The Groups have not early adopted any new or amended HKFRS Accounting Standards that are not yet effective for the current accounting period.
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24 1. BASIS OF PREPARATION AND PRESENTATION (CONTINUED) As at 30 June 2026, the current liabilities of the Groups exceeded their current assets by HK$18,550 million. After considering the Groups’ ability to generate net operating cash inflows and raise additional debt financing, and the un drawn banking facilities available as at 30 June 202 6, management considers the Groups are able to meet their liabilities as and when they fall due within the next 12 -month period . Accordingly, this unaudited condensed consolidated interim financial information has been prepared on a going concern basis. 2. SEGMENT INFORMATION The chief operating decision-maker (the “CODM”) is the Groups’ senior executive management. The CODM reviews the Groups’ internal reporting in order to assess performance and allocate resources and the segment information is reported below in accordance with this internal reporting. The CODM considers the business from the product perspective and assesses the performance of the following segments: - Telecommunications Services (“TSS”) is the leading provider of technology and telecommunications and related services including enterprise solutions, total home solutions, and media entertainment. It operates primarily in Hong Kong, and also serves customers in Chinese Mainland and other parts of the world. - Mobile includes the Groups’ mobile telecommunications businesses in Hong Kong. - Other businesses of the Groups (“Other Businesses”) primarily comprise other new businesses such as The Club’s loyalty platform, HKT Financial Services and healthtech services, as well as corporate support functions. The CODM assesses the performance of the operating segments based on a measure of adjusted earnings before interest, tax, depreciation and amortisation (“EBITDA”). EBITDA represents earnings before interest income, finance costs, income tax, depreciation and amorti sation, gains/losses on disposal of property, plant and equipment, interests in leasehold land, right-of-use assets and intangible assets, net other gains/losses, losses on property, plant and equipment, restructuring costs, impairment losses on goodwill, tangible and intangible assets and interests in associates and joint ventures, and the Groups’ share of results of associates and joint ventures. Segment revenue, expense and segment performance include transactions between segments. Inter-segment pricing is based on similar terms to those available to other external parties for similar services. The revenue from external parties reported to the CODM is measured in a manner consistent with that in the consolidated income statement.
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25 2. SEGMENT INFORMATION (CONTINUED) Information regarding the Groups’ reportable segments as provided to the Groups’ CODM is set out below: For the six months ended 30 June 2025 (In HK$ million) TSS (Unaudited) Mobile (Unaudited) Other Businesses (Unaudited) Eliminations (Unaudited) Consolidated (Unaudited) Revenue External revenue 11,914 4,861 547 – 17,322 Inter-segment revenue 613 339 23 (975) – Total revenue 12,527 5,200 570 (975) 17,322 External revenue from contracts with customers: Timing of revenue recognition At a point in time 3,153 864 506 – 4,523 Over time 8,723 3,997 41 – 12,761 External revenue from other sources: Rental income 38 – – – 38 11,914 4,861 547 – 17,322 Results EBITDA 4,421 2,412 (453) – 6,380 For the six months ended 30 June 2026 (In HK$ million) TSS (Unaudited) Mobile (Unaudited) Other Businesses (Unaudited) Eliminations (Unaudited) Consolidated (Unaudited) Revenue External revenue 12,283 5,862 540 – 18,685 Inter-segment revenue 630 386 28 (1,044) – Total revenue 12,913 6,248 568 (1,044) 18,685 External revenue from contracts with customers: Timing of revenue recognition At a point in time 2,900 1,658 467 – 5,025 Over time 9,340 4,204 73 – 13,617 External revenue from other sources: Rental income 43 – – – 43 12,283 5,862 540 – 18,685 Results EBITDA 4,508 2,532 (454) – 6,586
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26 2. SEGMENT INFORMATION (CONTINUED) A reconciliation of total segment EBITDA to profit before income tax is provided as follows: Six months ended 30 June 30 June 2025 2026 In HK$ million (Unaudited) (Unaudited) Total segment EBITDA 6,380 6,586 Gains on disposal of property, plant and equipment and right-of-use assets, net 1 2 Depreciation and amortisation (2,757) (2,984) Other gains/(losses), net 4 (25) Finance costs, net (885) (768) Share of results of associates and joint ventures (31) (14) Profit before income tax 2,712 2,797 3. PROFIT BEFORE INCOME TAX Profit before income tax was stated after charging the following: Six months ended 30 June 30 June 2025 2026 In HK$ million (Unaudited) (Unaudited) Cost of inventories sold 4,240 4,850 Cost of sales, excluding inventories sold 4,781 5,398 Impairment loss for trade receivables 151 135 Depreciation of property, plant and equipment 519 409 Depreciation of right-of-use assets 640 593 Amortisation of land lease premium – interests in leasehold land 6 4 Amortisation of intangible assets 823 1,094 Amortisation of fulfilment costs 230 196 Amortisation of customer acquisition costs 539 688 Finance costs on borrowings 826 814
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27 4. INCOME TAX Six months ended 30 June 30 June 2025 2026 In HK$ million (Unaudited) (Unaudited) Current income tax: Hong Kong profits tax 141 89 Overseas tax 19 22 Movement of deferred income tax 254 300 414 411 Hong Kong profits tax is provided at the rate of 16.5% (2025: 16.5%) on the estimated assessable profits for the period. Overseas tax is calculated on the estimated assessable profits for the period at the rates of taxation prevailing in the respective jurisdictions. In December 2021, the Organisation for Economic Co-operation and Development released the Global Anti-Base Erosion rules, also known as Pillar Two, aimed at reforming international corporate taxation. Hong Kong passed legislation to implement Pillar Two, with the Hong Kong minimum top-up tax and Income Inclusion Rule effective retroactively from 1 January 2025. The Groups are within the scope of this legislation. Following the amendments to HKAS 12 Income Taxes issued by the HKICPA in July 2023, the Groups have applied the mandatory temporary exception under paragraph 4 of the amendments to HKAS 12 and have not recognised or disclosed deferred income tax assets and liabilities related to Pillar Two Income Taxes. For the six months ended 30 June 2026, the Groups have completed their assessment and have not identified any material current Pillar Two tax exposure. 5. DISTRIBUTIONS/DIVIDENDS a. Distribution/Dividend attributable to the interim period Six months ended 30 June 30 June 2025 2026 In HK$ million (Unaudited) (Unaudited) Interim distribution/dividend declared after the end of the interim period of 34.80 HK cents (2025: 33.80 HK cents) per Share Stapled Unit/ ordinary share of the Company 2,562 2,639 At meetings held on 29 July 2026, the directors of the Trustee-Manager and the Company declared an interim distribution/dividend of 34.80 HK cents per Share Stapled Unit/ordinary share of the Company for the year ending 31 December 202 6. This interim distribution/dividend is not recognised as a liability in the HKT Trust and HKT Limited unaudited condensed consolidated interim financial information.
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28 5. DISTRIBUTIONS/DIVIDENDS (CONTINUED) b. Distribution/Dividend approved and paid during the interim period Six months ended 30 June 30 June 2025 2026 In HK$ million (Unaudited) (Unaudited) Final distribution/dividend declared in respect of the previous financial year, approved and paid during the interim period of 47.97 HK cents (2025: 45.88 HK cents) per Share Stapled Unit/ ordinary share of the Company 3,478 3,637 Less: distribution/dividend for Share Stapled Units/ ordinary shares of the Company held by the Share Stapled Unit award schemes (2) (1) 3,476 3,636 6. EARNINGS PER SHARE STAPLED UNIT/SHARE OF THE COMPANY The calculations of basic and diluted earnings per Share Stapled Unit/share of the Company were based on the following data: Six months ended 30 June 30 June 2025 2026 (Unaudited) (Unaudited) Earnings (in HK$ million) Earnings for the purpose of basic and diluted earnings per Share Stapled Unit/share of the Company 2,070 2,153 Number of Share Stapled Units/shares of the Company Weighted average number of Share Stapled Units/ordinary shares of the Company 7,579,776,147 7,582,398,399 Effect of Share Stapled Units held under the Share Stapled Unit award schemes (3,429,785) (3,705,543) Weighted average number of Share Stapled Units/ordinary shares of the Company for the purpose of basic earnings per Share Stapled Unit/share of the Company 7,576,346,362 7,578,692,856 Effect of Share Stapled Units awarded under the Share Stapled Unit award schemes 1,788,048 1,722,213 Weighted average number of Share Stapled Units/ordinary shares of the Company for the purpose of diluted earnings per Share Stapled Unit/share of the Company 7,578,134,410 7,580,415,069
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29 7. TRADE RECEIVABLES, NET The ageing of trade receivables based on the date of invoice is set out below: As at As at 31 December 30 June 2025 2026 In HK$ million (Audited) (Unaudited) 1 – 30 days 1,448 1,652 31 – 60 days 438 189 61 – 90 days 197 200 91 – 120 days 129 115 Over 120 days 458 486 2,670 2,642 Less: loss allowance (121) (120) Trade receivables, net 2,549 2,522 As at 30 June 202 6, included in trade receivables, net were amounts due from related parties of HK$228 million (as at 31 December 2025: HK$129 million). The Groups’ normal credit period for customers is ranging up to 30 days from the date of invoice unless there is a separate mutual agreement on extension of the credit period. The Groups maintain a well-defined credit policy and individual credit evaluatio ns are performed on all customers requiring credit over a certain amount. These evaluations focus on the customer’s past history of making payments when due and current ability to pay, and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. Debtors who have overdue balances are requested to settle all outstanding balances before any further credit is granted. 8. TRADE PAYABLES The ageing of trade payables based on the date of invoice is set out below: As at As at 31 December 30 June 2025 2026 In HK$ million (Audited) (Unaudited) 1 – 30 days 3,697 4,893 31 – 60 days 2,816 3,182 61 – 90 days 1,159 657 91 – 120 days 1,065 744 Over 120 days 1,025 1,276 9,762 10,752 As at 30 June 202 6, included in trade payables were amounts due to related parties of HK$128 million (as at 31 December 2025: HK$186 million).
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30 9. LONG-TERM BORROWINGS On 10 June 2026, HKT Capital Limited, an indirect wholly-owned subsidiary of the Company, issued US$650 million 5.125% notes due 2036 under the US$3 billion guaranteed medium term note programme, which are listed on the Singapore Exchange Securities Trading Limited. The notes are irrevocably and unconditionally guaranteed by HKT Group Holdings Limited (“HKTGH”) and Hong Kong Telecommunications (HKT) Limited (“HKTL”), both being wholly-owned subsidiaries of the Company, and rank pari passu with all other outstanding unsecured and unsubordinated obligations of HKTGH and HKTL. 10. CHANGE IN INTERESTS IN SUBSIDIARIES WITHOUT A LOSS OF CONTROL On 30 March 2026, the Company’s indirect wholly -owned subsidiary, Apex Link Communications Holdings Limited (the “Seller”), entered into a share purchase agreement with Pegasus Investment BidCo Limited (the “Purchaser”). The Purchaser is controlled and managed by China Merchants Capital Holdings Co., Ltd.*, which controls and manages another company holding 40% of the issued share capital of Regional Link Telecom Services Holdings Limited (the “Target”), an indirect non - wholly owned subsidiary of the Company. Pursuant to the agreement, the Purchaser shall purchase (i) 9% of the entire issued share capital of the Target as at completion; and (ii) a receivable in the amount of 9% of the total amounts owing from Fiber Link Global Limited, an indirect non -wholly owned subsidiary of the Company, to the Seller and the initial investor (a company controlled and managed by China Merchants Capital Holdings Co., Ltd. *) outstanding as at the completion date, for a total consideration of US$209,452,500 (the “Transaction”). As at 30 June 2026, the Transaction has not been completed, subject to the satisfaction or waiver of certain conditions. * For identification purpose only
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31 INCOME STATEMENT OF HKT MANAGEMENT LIMITED For the six months ended 30 June 2026 (In HK$’000) 2025 2026 (Unaudited) (Unaudited) Management fee income 32 32 General and administrative expenses (32) (32) Result before income tax – – Income tax – – Result for the period – – STATEMENT OF COMPREHENSIVE INCOME OF HKT MANAGEMENT LIMITED For the six months ended 30 June 2026 (In HK$’000) 2025 2026 (Unaudited) (Unaudited) Result for the period – – Other comprehensive income – – Total comprehensive income for the period – –
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32 STATEMENT OF FINANCIAL POSITION OF HKT MANAGEMENT LIMITED As at 30 June 2026 (In HK$’000) As at As at 31 December 30 June 2025 2026 (Audited) (Unaudited) ASSET AND LIABILITIES Current asset Amount due from a fellow subsidiary 729 761 729 761 Current liabilities Accruals and other payables (58) (87) Amounts due to fellow subsidiaries (671) (674) (729) (761) Net assets – – CAPITAL AND RESERVES Share capital – – Reserves – – Total equity – –
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33 As at the date of this announcement, the directors of the Trustee-Manager and the Company are as follows: Executive Directors: Li Tzar Kai, Richard (Executive Chairman) and Hui Hon Hing, Susanna (Group Managing Director) Non-Executive Directors: Peter Anthony Allen; Chung Cho Yee, Mico; Tang Yongbo and Zhao Xingfu Independent Non-Executive Directors: Chang Hsin Kang; Aman Mehta; Frances Waikwun Wong; Charlene Dawes and Ng Wai Lun Forward-Looking Statements This announcement may contain certain forward -looking statements. These forward -looking statements include, without limitation, statements relating to revenues , earnings and prospects. The words “believe”, “intend”, “expect”, “anticipate”, “project”, “estimate”, “predict”, “is confident”, “has confidence” and similar expressions are also intended to identify forward -looking statements. These forward -looking statements are not historica l facts. Rather, the forward -looking statements are based on the current beliefs, assumptions, expectations, estimates and projections of the directors and management of HKT relating to the business, industry and markets in which HKT operates.