Hkbn Stock

Good afternoon, everyone. On behalf of HKBN Limited, thank you all for joining the group's 2026 Interim Results Investor Presentation. First of all, allow me to introduce the management team attending today. Board Chairman and Executive Director, Mr. Ling Hao. Executive Director and Group Chief Executive Officer, Mr. Li Xin; Executive Director and Chief Financial Officer, Mr. Lei Liqun; President and Group Chief Operating Officer, Dr. Dennis Yip. Now may I invite Executive Director and Group CEO, Mr. Li Xin, to walk us through the group's overall performance. Mr. Li, please.

Good afternoon, ladies and gentlemen. Welcome, investors, to Hong Kong Broadband 2026 Interim Results Announcement. Hong Kong Broadband has been upholding 3 growth strategies to shape the future and reshape the industry. So we are in Hong Kong, and we have unique advantages. We are creating digital service independent battle to drive the digital development of GBA. So we are working steadily on to the international stage.

We have strengthened our network capability. We have even more adequate investment resources, and we are more aggressive in expanding our blueprint. We are upgrading our services. We are working on copper to fiber transformation, and we are deepening our intelligentization and digitization, we are incorporating AI into different scenarios.

Since September last year, Hong Kong BN and China Mobile are creating bigger customer value in 5 major co-creations. In terms of customer synergy, we are integrating our customer bases to expand our footprint. And for business synergy, we are deepening fixed and mobile integration to enrich our product portfolio. In terms of synergy of services, we are offering cross-border telecom and also cloud network integration. We incorporated our computing network and also our fiber capabilities, and we are making use of our economies of scale to lower our operating cost. In first half 2026, we saw that revenue was up 5.1% year-on-year at HKD 6.029 billion. EBITDA, up 14.2%. Net profit was up 108 million, up 20%. For other operating expenses, down 2.8% at HKD 1.499 billion, deleveraging from 4.79x down to 4.58x. So EPS or dividend per share, HKD 0.155.

Network all along has been our way to service our customers and for creating customer shareholder value. So network upgrading and quality enhancing has been important for us. We're expanding our network. We are upgrading fiber equipment to enhance customer experience. We increased annual CapEx so as to cover up more buildings. This year, for a number of customers covered, it's up 2% at 2.66 million. At the same time, we upgraded our fiber to offer very high-speed network. So many customers have been encouraged to upgrade to GigaFast so that we can introduce and promote our extension services. So we are introducing our copper to fiber transformation so as to enhance customer experience.

And then for our core network, we have the 100G 10x upgrading. So this is for AI, cloud, supercomputing and also a huge amount of use of data. So among successful cases in different regions, many customers are integrated into the 100G network, and then they are integrated into global Internet. So there is now lower latency. Overall reliability and stability is enhanced. So for innovative customers in GBA as well as fintech customers in Singapore and also cloud ecology customers in Japan. Through private lines, they are integrated into our 100G network so that they can be linked to multiple platforms and data center. So we are improving our core capabilities, when there is huge amount of data demand.

At the same time, we are strengthening the cross-border network hub status in Asia Pacific so that we can have a very mega bandwidth so that there is high computing power applications. And then for upgrading our quality, we are synergizing and bettering user experience. So we strengthen network quality monitoring system. We adopt China Mobile Group's broadband quality standards. We build end-to-end observable model, and we establish a perceptible and visualizable network quality system. We optimized content distribution and deployment, improved localized content distribution efficiency, enrich CDN/OTT resources, reduce application latency and jitter.

For enhancing end user experience, we leverage China Mobile Group's extensive resources and industry chain advantages, improve connectivity quality between Hong Kong and the GBA and optimize Chinese Mainland gaming experience. You can see that we have already seen results. And we localized traffic scheduling accuracy. It's increased by 36%. Localized traffic volume increased by 30% for use on Douyin and Red Nook, so the latency was reduced from 32 milliseconds to 5 ms, 65% reduction in latency for mainstream Chinese Mainland games.

We have already enhanced the speed and traffic performance of Chinese Mainland network access. We're faster and more reliable, empowering enterprises to connect efficiently to the Mainland network. So Northern Metropolis network strategy, it is our forward-looking vision for the future, and it accounts for -- Northern Metropolis accounts for 1/3 of Hong Kong's land area in future population. It is a new engine for Hong Kong strategic development, substantial economic value and growth potential, creating large-scale employment and boosting productivity. With high-speed private network, so for various business areas, we offer dedicated networks. At the Northern Metropolis, we will cover network covering up to 350,000 residential households.

Now let me talk about the performance of our enterprise solutions. Revenue was up 10.5% at HKD 2.817 billion. SI revenue, up 11.1% at RMB 433 million, 2 Gbps and above GigaFast broadband customers over 18,000, up 2.1x year-on-year. Average monthly churn rate came down to 1.1% from 1.3% last year. Building coverage was up 1% at 8,266 buildings. For our Enterprise Solutions, the base is GigaFast. And through 3 directions, we are increasing our growth.

So first of all, solution upgrades. So we are enhancing our upgrade. So Chinese governments and also overseas enterprise markets are our focus. Besides, together with our partners, we have co-created Cytek ecosystem. So this can drive our overall business development, including cybersecurity, AI, cloud, IT infrastructure and digitalized application. So all these have been our integrated solutions. GigaFast business broadband through 1 year's time, we have increased 2.1x in terms of customers number. And then 70% is the router bundling rate. And then there are 18,000 GigaFast customers. For SMEs, we have value-added services for diverse business needs. In the past, we work for retail, F&B, general business, property management sectors. This year, we have newly introduced smart education solutions. So it is a one-stop solution covering AI teaching, computer equipment, AI software, smart mailbox and AI CCTV.

Besides, we have got this NPontZafe endpoint solution, security. In first half 2026, there is average monthly fee increased by 25-plus percent. new average monthly fee, HKD 800, number of new value-added package subscribers, 7,000 plus. total new contract value, HKD 150 million, up 11% year-on-year. And then for large and medium enterprises in the first half, project value exceeded HKD 95 million, up 17% year-on-year. We delivered more than 350 projects. So we converged telecom and tech enterprise expertise, meeting complex digital needs of large and medium enterprises across industries.

We offer unified multi-cloud management and connectivity, customized multi-branch private network, critical infrastructure, [ NT DDoS ] services, securities and derivatives, market connectivity and professional applications. We successfully served multinational corporations, major Hong Kong enterprises, financial regulators, governments and Qusai government bodies, retail chains and other customers. We deliver comprehensive, scalable connectivity solutions.

For system integration business, our performance is outstanding. We power enterprise digital transformation. In the first half, revenue was up 11% year-on-year at HKD 433 million. Gross profit was up 16% at HKD 83 million. So it is a core technology partner, leading enterprise digital transformation. We are Hong Kong's leading cloud and managed services operator. Revenue was up 16%. And then we are also an IT operations and security management expert. We have brought in exclusive authorization from vendors, enhanced data security and system upgrade maintenance capabilities. We are also a trusted AI application partner. We build end-to-end reliable AI environments to deliver tailored solutions for enterprises.

Hong Kong Broadband ITEA builds an I&T ecosystem. We collaborate for shared success. We launched in 2025, referring to this alliance, and it brings together leading technology solution providers across sectors. In first half 2026, we have newly signed agreement with H3C, Yunke China, Yonyou, Integrity Tech, Lark and so on, so as to give us better development and business opportunities.

There are signing with exclusive partners to enhance our profit margin. For growing computing power, we drive AI services towards stable recurring revenue. computing services growth, 13-plus percent year-on-year, intelligent services growth, 30-plus percent year-on-year. When we face different smart organizations, we offer different services. For government departments, we provide intelligent solutions to strengthen unified management of public assets. For trading platforms, we establish sustainable intelligent operating systems to support long-term stability of critical systems. For social service organizations, we construct end-to-end enterprise intelligence systems covering budgeting, financial data flows and user processes.

So there is clear enterprise demand for AI fueling future computing power developments. We build high-power computing portals. We expand computing power capacity to meet AI and high-performance computing demand. We adopt a dual-track approach of in-house development and resale, balancing long-term control with near-term scaling. Computing-powered smart business models, deeply embedding computing power and AI agents into enterprise system integration and delivery, integrating proprietary AI agents as a core capability into platform delivery. Deep integration with China Mobile's product ecosystem.

We expand application scenarios through smart operations and deep platform integration, covering IoV, low-altitude economy, IoT platform, JiuTian AI platform, mobile cloud and more. End-to-end AI solutions is tailored for industry scenarios powering customer digital transformation. We have strong capabilities, deep industry experience and proven customer cases. We help businesses across sectors achieve AI-driven digital transformation. For government agencies and logistic companies, we have built knowledge-based AI agent for unified asset management, intelligent workflow queries and for insurance banks and other operators, we built omnichannel contact AI agents.

And then for trading platforms, logistics companies, entertainment, we have built data intelligence core for data integration and analytics and embed AI into workflows. We are the first to launch open cloud AI solution as a telco. We're guided by philosophy education first application for all. We offer professional installation services, practical skills training and enterprise-grade network protection. The first workshop was successfully held on 23rd March 2026. More sessions will be launched with overwhelming response.

For international data business, we can see year-on-year growth, reflecting strong cross-border demand. In first half, revenue increased to RMB 143 million, up 20% year-on-year with strong customer relations, local network advantage and deep collaboration with overseas carriers, our fixed network business offers customized connectivity solutions to meet diverse needs of various industries. So we offer high bandwidth service and also private line and international private network.

So we focus on innovation and technology development on R&D and also on quantum secure private line, we redefine data transmission security. Quantum secure transmission can eliminate e-stropping and prevent decryption. There are 3 advantages: ultimate security, ultra-low latency and bandwidth on demand. Application scenarios include finance, health care, aviation, enterprise compute network and energy.

Next, our Residential Solutions. Residential telecom revenue was up 3.8% year-on-year at HKD 1.241 billion. Residential ARPH, up 2.8% year-on-year at HKD 218. 2G and above GigaFast broadband subscriptions year-on-year increased 42.7% at 114,000 broadband subscriptions, up 1.8% year-on-year at 960,000. Total homes passed 2.66 million, up 1.7% year-on-year.

For our Residential Solutions, GigaFast is our core, and there are 3 major directions to drive growth. So for fixed mobile convergence, there is one-stop service. And then Infinite Play, we bundle value-added services to enhance customer loyalty and renewal rates. network upgrade, we accelerate fiber network coverage, driving fiber in, copper out, elevating user experience. So we can satisfy customer different needs, including OTT content expansion and home infinity service. There are also health care services and solutions.

So far, our residential 2G and above, annual growth is 43% year-on-year at 114,000. At the same time, 80% of our customers are bundled with our routers. 10% of our customers are using higher grade 5G or 10G service. And then there is even smarter and more convenient life style convenience. So there is voice, global SIM OTT service, broadband, WiFi, security, insurance and health care. So altogether, there are 11 different types of services to satisfy customers' needs.

Those using 4 and above Infinite Play solution, there are already more than 27% of such customers. So it is now at HKD218 in terms of residential ARPH. Through Infinite Play package, we cover esport, OTT, AI users and also working at home -- working from home. OTT subscription business enjoyed steady growth. So we are Hong Kong's #1 telco partner in Netflix, iQiyi, Disney+ and MyTV Gold. This year, we introduced WeTV and KKBox. ARPH's up 14% year-on-year. Paid subscriptions grew 12% year-on-year. As a result, our overall revenue was up more than 26%. And then mobile services is our core this year. At the moment, we see a lot of market opportunities from different households and also from mobile customer base.

At the same time, there is significant potential to upgrade or switch to broadband times mobile bundled services. Our market advantages are high-speed, low-latency cross-border connectivity, integrated Hong Kong, Chinese Mainland communication solutions for cross-border and high net worth customers. We will strengthen dual brand synergy. We will strengthen broadband times mobile service integration, improving renewal rates, ARPH and value-added service revenue. Comparing with last year, in 2026, average monthly fee is up 7% year-on-year. In March, we increased our marketing efforts. So telecom service residential customers increase over 100%. Gerontech Solutions, we safeguard seniors for aging in place. This is very important. Elder Buddy includes home safety, daily care and outdoor smart devices. For high-risk carers and families, we're offering Gerontech solutions. So the above is our result presentation. Thank you.

Thank you, Mr. Li, for the sharing. Now we will move on to Q&A. [Operator Instructions] We'll start with a question from the floor, then we'll take a question from the online participants. After that, we'll switch it up and go back and forth. [Operator Instructions] We welcome your questions in either Mandarin or English. May we invite the first question from the floor, please?

I am Andy. I have a question. So looking at your international business growth is quite good, up 20%. What are the reasons?

So looking at the growth of 20% for international business, there are a few reasons. First, our customers actually can see that there will be more and more going abroad and overseas development. And then companies which use Hong Kong as their international headquarters, there are more and more such companies. In the past, our customers are based in Hong Kong and then gradually, they expand to Southeast Asia, Middle East. Of course, recently, business was lower in Middle East. And for these areas, there is the need for international carrier lines.

The second angle or perspective is that right now, as I said earlier, there is more and more ecosystem alliance like ITEA. So with Mainland, Hong Kong, Chinese solution companies, where they are also looking for overseas development opportunities. When we collaborate in Hong Kong, we also work together in a lot of projects and solutions in Southeast Asia. So regarding overseas development, especially going out from Mainland, Hong Kong serves as the headquarters to drive our growth.

Thank you for the question. Thank you management for the answer. Next, we will take the next question from participants here.

Next question online is, so interest rate trend, what will be its impact on the company's finance cost?

So some time ago in the market, interest rate level was at a rather high level. And right now, it is coming down. The trend is a downward one. So at present, it is at a relatively stable stage. So recently, if you look at Hong Kong HIBOR, it is at around 2.5%. I believe on one hand, market interest rates will come down or stabilize. At the same time, in terms of financing, we are making a lot of arrangements to lower cost. So we expect that to us, finance cost will be more and more favorable. That will be the outcome.

Thank you for the questions from online investors. Once again, we'll pass the floor to online participants. So in the Mainland market, in terms of your expansion on the Mainland, what are your plans?

Actually, for Hong Kong Broadband, we basically focus on local resources. All our resources are in Hong Kong. We are talking about our network resources. At the same time, on the Mainland, we also have human resources because a large number of people are doing ISI business on the Mainland. And there are also some Mainland Chinese companies going abroad, as mentioned earlier. There are also some Mainland local businesses. These are done on the Mainland. At the same time, we work with China Mobile Group we work with the Mainland departments and our resources are being integrated to get more business opportunities.

For example, Hong Kong companies going into Mainland or Mainland companies going to overseas, going overseas via Hong Kong. These are things that we can do. So it's like a door opening on 2 sides. So as long as things go through Hong Kong, we can do it. This is going to be a big development opportunity in the future.

Thank you. Once again, questions from the floor, please. Back to online. In the interim results, CapEx was up 13% year-on-year. So what is the structure of CapEx input? So if raw materials like fiber increases in price, would that affect your CapEx plan?

Let me emphasize, CapEx growth. is within our range of control, and there are directions for the investment. It all depends on where market opportunities are. Now in the Hong Kong market, more market opportunities are related to AI and also smart services. These are important areas where we invest our CapEx. At the same time, we will have to see where customer needs are in the market. So for broadband, network access and also iterated services, they have demand. So this is another focus of our CapEx. And then our own company's development direction. So for old and broken equipment, we will invest CapEx to upgrade our equipment and technology. So these are the 3 areas.

This investor has asked another question. Regarding AI-related revenue, so how much is it? What do you think will be the drive to your business coming from computing needs of AI?

Let me answer this question. In the AI area, well, just now you might have seen from our results, SI system integration accounts for around 20% to 25% of total ES revenue. So it is difficult to say which part is AI and which is not out of this 20% to 25%. Regarding customers' demands and also network bundling, they are related to AI. So when we announce results, there is not an item specifically about AI. Regarding our moves on AI today, you can see that there are many moves in relation to AI. And just now Mr. Li also said that in relation to our CapEx, we also take into consideration some CapEx related to computing power.

So in May -- on the 7th of May, we will make a new move, and that is on AI plus network, we are going to have a new initiative. So actually, we can see that most of Hong Kong enterprises now are looking at how to make use of AI to deliver faster and better experience. So for our future positioning, it is AI plus -- network plus AI development. So please stay tuned.

Thank you. Next question from the floor, please. online question. Since September last year, after China Mobile had got into Hong Kong Broadband, well, how do you see Hong Kong Broadband's performance?

Well, Hong Kong Broadband performs quite well. I think we have a very professional and engaged team. So they're all united. We are all united together, and we are delivering more services for customers and for the market.

Next question. In the second half of the year and also in the future, regarding our cooperation with China Mobile, will there be further expansion? What is the outlook?

In Mr. Li's presentation, he mentioned that there are 5 areas of synergy. And these 5 areas of synergy will be deeper and deeper and the empowerment of Hong Kong Broadband will get stronger. Regarding customer services, content and foundation of customer services, there will be big enhancement. And then the room in the market will be broader.

Next, we'll continue with online questions. Regarding shareholder dividend policy, will there be any adjustments?

Let me take this question. In 2026 first half, we proposed to pay HKD 0.155 of dividend. So it seems to be flat as compared to same period last year, that is first half last year, but it doesn't mean that our dividend policy is going to be flat. In our results announcement, we already gave a very clear guidance. So we will try our best to create stable and sustainable return for all shareholders. That's our strategy.

And then for our external dividend guidance, under usual circumstances, we'll look at adjusted free cash flow. It will -- so based on not less than 75%, dividend will be paid out, not less than 75% of the free -- adjusted free cash flow. So of course, the Board will actively evaluate our dividend policy and dividend payout. As you know, usually, we will consider our company's results and performance and also -- just now, our management already said or talked about an increase in our CapEx.

So we will have to consider our future capital and investment needs. And at the same time, there are debts that we need to repay, and we will also consider future development needs. We will take into consideration all these factors in determining our dividend policies and dividend payout.

Thank you, management. Thank you, online investors. Now we will pass the floor back to on-site participants.

Once again, thank you, management. for the detailed answers and presentation. And thank you, investors, for the active participation. We'll conclude the Q&A session here. And also the results announcement is concluded here. Thank you very much. See you next time.

Good afternoon, everyone. On behalf of HKBN Limited, thank you all for joining the group's 2025 Annual Results Investor Presentation. [Foreign Language] First of all, allow me to introduce the management team attending today. [Foreign Language] Board Chairman and Executive Director, Mr. Ling Hao; [Foreign Language] Executive Director and Group Chief Executive Officer, Mr. Li Xin; [Foreign Language] Executive Director and Chief Financial Officer, Mr. Lei Liqun; President and Group Chief Operating Officer, Dr. Denis Yip. [Foreign Language] Mr. Li Xin?

Investors, friends, friends from the banking sector, good afternoon. I'm very happy to represent HKBN today to present the annual results. The theme this year is empowering lives, reshaping businesses, inspiring innovations. Just now, the management has been introduced to you. Now let me go through our performance.

First, for revenue this year. So HKD 11.129 billion. EBITDA, HKD 2.45 billion, up 4% year-on-year. Net profit, HKD 207 million, up 20x. Free cash flow up 9%, HKD 677 million. OpEx was down 3% at HKD 1.592 billion. And our deleveraging in 2024 was 4.93x and this year, 4.66x. So dividend per share, HKD 0.3443.

So the results that we have achieved rely on your support and also our customers' trust and encouragement. At the same time, we have to thank the effort of our employees. Besides, we have put in place the growth strategy. In 2025, our growth strategy is that there are value and infinite possibilities. And our core is our GigaFast. And source of revenue is also our main driving force for profit. We have both Enterprise Solutions and Residential Solutions. First, for Enterprise Solutions, GigaFast had driven the digitization for enterprises. At the same time, we have integrated system solutions, combining telecommunications and technological expertise, injecting core momentum into business growth. We have cybersecurity, AI cloud solutions, IT infrastructure and digitalization.

We have also established an ecosystem alliance to help enterprises to develop overseas markets. For residential, we have GigaFast, home broadband leading the entertainment business. So we are changing from ARPU to delivering integrated service to household. So with our Infinite-Play Solutions with OTT Entertainment, Home Infinity, Healthcare & Intelligent Solutions, we are able to serve diversified needs of customers. And besides, we offer unified effortless experience with seamless integration of fixed and mobile networks.

Next business highlights. For our enterprise business, we have HKD 2.688 billion of revenue for enterprise core telecom revenue, up 3%. And then next, we have HKD 770 million for Enterprise System Integration. And then we have more than 12,000 of customers for 2 gigabits -- and then for churn rate, we are down 0.2 percentage points at 1.2%, and we cover 8,220 commercial buildings and facilities, up 1% year-on-year. Our coverage is increasing, and our monthly churn rate is coming down. Our high-value users are increasing. Our overall revenue grew for our enterprise solutions. So this shows that our enterprise business has been stable.

For residential business, core telecom revenue, HKD 2.027 billion, up 2%. So here, you can see just now, we talked about residential ARPU up 2% at HKD 186. And then ARPH, HKD 217, up 5%. So for 2G and above customers 95,000, broadband subscribers 907,000. Total homes passed, up 2% at 265,000 households. So here, you can see our coverage is increasing. high-value customers are increasing. And then for revenue from smart solutions, that is also increasing. As a result, our residential business has grown.

Next, let me go into detail about our enterprise solutions, GigaFast broadband. So it is an important solution behind our rapid growth. In August 2024, it was launched. At that time, penetration was only 0.8%. In August this year, 13.1% already. For our GigaFast customers, we have more than 12,000 customers. For 5G and 10G contract value, their share is more than 20%. Besides, for different enterprises, we have provided different solutions for SMEs, where we have Biz-In-Motion and also Shop-in-a-Box all-in-one retail solutions. And then for products, we have one-stop IT service, Care+ and then [indiscernible] AegisInsight and CyberZafe as well. So for different types of customers, we offer different solutions. For retail and F&B, we offer Shop-In-a-Box, so that for customers' whole life cycle, we offer solutions.

And then we also offer electronic payment, omnichannel and also the queuing up system. And then we offer inventory management, online marketing solutions. And then for general business, we have the Biz-In-Motion, we have Microsoft and also the HR system, meeting system, e-claims and so on. So we can offer to customers whatever they need.

For property management, we offer Property-In-A-Box. So we can do Internet of Things. We offer digital operation platform, including surveillance and also booking platform. So in 2025 FY, total increase in number of customers is more than 13,500 and average monthly fee was up more than 20%.

Then for larger enterprises, we extended connectivity solutions and integrated telecom and technology expertise. We focus on cloud, customized private network and also cybersecurity to expand our revenue. So we have our DWDM ultra-low latency arrangement. So we are able to integrate the cloud and network, besides we support AI and also public cloud. And then we have dedicated cloud and network managed service with real-time connectivity monitoring. So we are able to offer integrated arrangement.

And then for customized private network, we can serve Customized Metro Ethernet. And then we offer corporate data security and comprehensive manageability. For critical infrastructure, we offer Anti-DDOS protection. And then there is Anti-DDOS Clean Pipe, 2-tier firewall protection and managed security services, offering to customers very good security.

There are more than 400-odd contracts being signed, contract value more than HKD 110 million. We cover technology, property, finance, logistics and utilities sectors. At the same time here, you can see that our SI business performs very well. Revenue this year was up 14%, gross profit up 16%. So in Hong Kong, this year, all these figures are very stellar performance. So on sports and entertainment organization, we offer next-gen critical infrastructure upgrades and management. We offer very high-quality, low-latency network. For financial institution, we provide future-proof global high-volume trading platform. Again, this is low latency and high usage network.

For outdoor event venue, we use the LiDAR technology to do crowd tracking and venue management system in order to enhance venue management efficiency. And then, of course, we want to satisfy customers' needs. So at the beginning of the year, we established the iTEA, we unlocked new partnerships and business opportunities. With leading technology solution providers, we help enterprise customers overcome technology challenges and accelerate business growth. We capitalize on our 1,000-plus service delivery engineers. That's our strength. And together with our partners, we empower enterprises with AI and innovation.

In second half 2025, total contract value exceeded HKD 50 million. And for all iTEA enterprises, we are in all industries. So we have leading database software and leading storage service and also big data operators. And then we have enterprise-based AI computing power provider, including end-to-end network management system and various service providers.

And then for cybersecurity, we work with both Hong Kong and Mainland service providers. On cloud infrastructure and backup solutions, we offer HRM and ERP. And then this year, for AF technology, we do not only work with AI software companies like Baidu Cloud of the Mainland, we also work with AI GPU provider from the Mainland. So we offer integrated solution from hardware to software.

At the same time, we focus on future technology development, and we work with Jiangsu Future Networks Innovation Institute. So we make good use of their first next-generation mega facility, and we are in more than 40 core cities. So for Hong Kong users, we offer AI computing power and also data algorithm so that we can offer possibilities for their AI development.

In this year's policy address, the CEO said that the government would advance the development of a competitive low-altitude economy ecosystem, positioning Hong Kong as an Asia Pacific hub for innovative low-altitude applications. So we work with Beijing Research Institute of Telemetry. By integrating telemetry technology with digital solutions, we aim to explore low-altitude economy applications and drive development of smart cities in the GBA.

Of course, all foundation is about our network. So we want to be able to help our customers to satisfy their customers' needs. So first of all, we have the fiber network all over Hong Kong. That's the foundation. Besides on this foundation, we have the TWM technology. So we have built the terabit-based -- terabit level technology. So we hope that we believe that DWDM together with our MetroNet, then for our enterprise customers, we are able to offer a convenient solution. So they can do AI and machine learning and also diversify synergy, IoT, video and also digital twin, 8K video and IoT and so on.

So we need to protect critical infrastructure. So protection of critical infrastructure computer systems ordinance will take place from 1st January 2025. It will take effect that day. So we will -- there will be cybersecurity management units to be established and regular conduct drills and risk assessments. So for our customers, there will be new requirements. And then we can see that Hong Kong cybersecurity market will continue to grow. In 2025, the scale is USD 850 million. By 2030, it will grow to USD 1.2 billion.

In the coming 3 years, our related revenue will also steadily rise by 3x. So here, you can see our 2025 data. In FY 2025, contract value totaled HKD 188 million, up 3.3x from 2024. We have diverse security partners. So together with Mainland working partners, we have actually achieved more than 12x in growth in new project value. So we have also more than 120-odd talents in our talent pool.

Next, Residential Solutions. So we are driving ARPU and ARPH with GigaFast Upgrades and Infinite Play bundles. Per customer, the growth is HKD 186, up 20% for each family, HKD 217 in revenue, up 5%. So you can see that our effectiveness is very fast. Our penetration rate last August was 7%. Total user number within a year grew 44%. Right now, for our GigaFast customers, there are 95,000 customers right now. And then 90% of the customers have chosen the bundle -- router bundle package. So that would be additional income for us for HKD 86.

So overall speaking, you can see that we have 90,700 total customers, 90 odd thousand are 2G plus customers. And then we have the Enhanced Infinite-Play Solutions. So that is to enhance our family income. We offer 3 tier of solutions. First, the telecom need; and second, the network need and third layer, the daily living need. So we have voice communications, high-speed fiber broadband, global SIM and so on. So for network need, we offer to them home network solutions with home, cybersecurity and WiFi. So for home entertainment and lifestyle, we offer OTT, music and entertainment, e-commerce shopping, travel and home insurance, sharing technology and health care services.

So last year, our residential income was up 5% at HKD 21.7 billion. Just now, we talked about 11 residential service products. And then those subscribing for services, it was up 10%; 5 services and above, up 3%. So this shows that our customers are more and more receptive of our solutions. And this shows the success of our Infinite Play Solution. So broadband, mobile, telecommunication, OTT, WiFi and also network security, these have promoted our revenue growth.

For OTT, our stand-alone OTT subscription is rising steadily. For global OTT working partners in Hong Kong, we have Netflix, Disney+ and myTV Gold. So these are telecom working partners, which are top sales achievers in Hong Kong. And in first quarter next year, we will introduce WeTV and KKBOX. After subscribing to OTT, our ARPU every year will be up 11%. And then OTT subscriptions last year grew 11% as well. So for subscriptions, we have a big increase in our revenue.

And then when it comes to premium customers, we introduced Home Infinity, which is bespoke home services. So we are building excellent customer experience. Based on different customer needs, we offer on-site maintenance; products include network, storage, surveillance and also smart home. And finally, we have to say that we have our ESG commitment. HKBN's inaugural syndicated sustainability-linked loan is such that interest rate adjustment mechanism is tied to sustainability performance targets.

Our target is to reduce carbon emission and average failure rate of phishing assessments for Hong Kong BN's staff should be lowered. And then we achieved The Asset Triple A Sustainable Infrastructure Awards 2025 Telecom Refinancing Deal of the Year. So we are within top 20% among telcos worldwide. And then we are also AA+ rated under Hang Seng Corporate Sustainability Index series. So we are within top 10% of Hong Kong rated companies.

I believe that we are able to -- and we are working very hard to offer even better quality services to Hong Kong society and Hong Kong customers. Thank you all.

Thank you, Mr. Li, for the sharing. So now we will set up the stage, and then we'll move on to Q&A session. [Foreign Language] We'll invite our management to the stage for the Q&A session, please.

So we have Mr. Ling, Mr. Li, Mr. Lei and Dr. Yip, please. So those of you on-site and online, you are most welcome to ask questions. We will first invite questions from those on site, and then we will read out questions that we have received online.

Here with us today, whether in person or joining through the webcast, feel free to ask any questions you have. We'll start with a question from the floor, then we'll take a question from online participants. After that, we'll switch it up and go back and forth. [Foreign Language] If you are here in person, just raise your hand and I will bring the microphone over to you. [Operator Instructions]

[Foreign Language]

First question on the phone please.

Greetings. I am Konya. First of all, congratulations on the excellent results. I have 2 questions. First, looking at the results announcement, so the theme is about growth. So can we -- can you share with us future growth highlights, for example, regarding Residential Solutions and Enterprise Solutions and regarding the parent company's support on HKBN. Where can we see such support?

My second question is about your dividend policy. So in the future, will there be any change to your dividend policy?

Let me take the first question first concerning growth in the coming year and our strategies. Actually, we focus on enterprise and residential growth. For enterprise business, if you take a look at 2025, for core business growth is already 7%. So just now, Mr. Li mentioned the total. So the growth is even bigger than that. So in relation to growth from enterprise, there are 2 things.

First, we launched new solutions like MetroNet 100G and also 2.5G Plus, 5G, 10G and so on. So these 2 within our investments are such that we have already made a lot of plans and solutions. So this is going to be an important highlight.

Next there is 14% growth and 16% growth in GP margin in SI. So when it comes to SI, in the coming 5 years in Hong Kong, there will be a big change in the past. So perhaps we use products from Europe and U.S. for SI in the coming 5 years in Hong Kong. Basically, there will be very good solutions at lower price. So they are Chinese solutions. So on this point, we have established iTEA. There are almost 30 different working partners in it already. So when it comes to growth from SI, we are highly confident.

In terms of overall, no matter whether we talk about telecom or SI, so I think our direction is very good. Of course, after China Mobile has come in, well, they have developed some products. And in the future, we will also take a look at how to make use of solutions from the headquarters of China Mobile and also China Mobile in Hong Kong, so as to accelerate our growth.

I will defer to Mr. Lei to talk about dividend.

Yes. Let me talk about dividend guidance. Thank you very much for your attention. All along, we have been striving to ensure that shareholders can share our results. So our policy is to have stable dividend. So adjusted net profit, it will be not less than 75% of that. And at appropriate times, we will review our dividend policy and dividend payout. And then the Board, we'll look at our company's profitability and operation and future capital needs, future business needs. And then at the same time, in terms of deleveraging and dividend payment, we will try to strike a balance between these 2 so that we are able to create long-term value for shareholders. Thank you.

Thank you for the detailed answer. Thank you for the questions. Next question is from online. Integrated asset management. Do you have any plan to help the company to lower financing cost?

So it seems that our liabilities are not low, but we are within a reasonable range in our industry. That's the first point. Secondly, regarding our company's development, we need reasonable capital to satisfy future investment needs. Of course, we will focus on enhancing management of our liabilities and financing costs. So after the entrance of China Mobile, there is good reputation and also various banks have confidence and recognition of Hong Kong AN. So they have given us big support. Today, we have just completed the HKD 10.75 billion refinancing arrangement. This arrangement will bring to our company a rather big savings in terms of our interest expenses. I won't give the exact number. Why? Because, well, that would affect our next year's earnings forecast.

So there are 2 factors that you need to consider. First, for financing contracts, one-off borrowing cost, it will have to be included in the next FY around HKD 140 million. For financing, it is arranged based on floating interest rates. So the final arrangement will depend on market change of the floating interest rate. That's why I won't give a definite guidance. Thank you.

Thank you management for the answer. Thank you for the online question. So next, we will take question from the floor.

The gentleman on the third row, please?

Yes, I'm from BOC Hong Kong. So after China Mobile has acquired HKBN, so 2 strong players are working together. In terms of telecom network, customer resources, R&D and so on, there are a lot of complementary basis. So in the future, how are you going to integrate the strengths of both parties in order to achieve co-sharing of resources so as to reach the goal of cost reduction and efficiency improvement?

Thank you for your question. All along, we have been looking into this matter. HKBN originally was in the process of M&A. And right now, there are 2 levels of network that need to be optimized and integrated. So basically, we have to maintain independence of each other. At the same time, we want to achieve synergy. The 2 companies will adopt market practice. So these are 2 independent legal entities working together.

And then for future network development, we believe that there would be a lot of synergy in our strategies. So we will be able to enhance quality. And for both teams, we are able to complement each other, and then we can learn together to achieve enhancement. I think if one team can come up with a good solution, then it will be shared with another team, especially about technology. As a result, there will be a good synergy effect.

Regarding concrete data, I cannot really give you some concrete numbers because both parties have to consider. At the same time, we have to go through HKBN's Board of Directors. So in the future, when we want to enhance the network, we need to see how much more money we need to invest and the market potential that can be generated and also possible cost increase. All these have to be considered to maintain value of the enterprise in approving and vetting the plan. So at this stage, the plan is not being scrutinized yet. Thank you.

Thank you for the answer. Next question is an online question. China Mobile has become your majority shareholder. After that, in the future, how will your company benefit from that?

Let me take this question. China Mobile Hong Kong has become the majority shareholder of our company. So the 2 companies will work together. We will complement each other with our strengths. We will make good use of China Mobile's and HKBN's strengths to cooperate and integrate. Now there are 3 areas of synergies. First, about market and service. We will make use of HKBN's foundation in the market and Hong Kong, China Mobile's leading ecosystem to offer complete solutions to customers. That's the first point.

Secondly, in terms of technology and resources, there will be synergy. As you all know, HKBN in terms of fiber network has strong advantages and strengths. And China Mobile Hong Kong in terms of 5G and computing power and high-tech areas also have strong strengths. So both parties can offer to customers better services and more competitive product choice.

Finally, there will be synergy in terms of strategies and also value. So we will look at markets with strong strategic value, and we will offer to Hong Kong government and Hong Kong residents products and services with better value.

Thank you for the answer. Because of time, we'll take the last question from the floor. Microphone to the investor who has put up his hand.

I am [ Jew from DBS Bank ]. My question is about the Mainland market. So we noticed that this year, HKBN is working with more and more companies and organizations on the Mainland. There is more and more integration with them. So I want to get some guidance from you in the future concerning revenue from the Mainland market. How much help will be delivered to the overall business growth and revenue growth?

I think there will be growth in a few areas. First, as we all know, going abroad, very often Mainland solution providers, when they bid on the Mainland, profit is relatively lower because it is highly competitive. So usually, they want to go abroad. And when they go abroad, they like to use Hong Kong as the international headquarters. So you can see that our SI revenue is growing. That is actually because of iTEA, we have brought in some solution providers, some are exclusive. And in Hong Kong, we can sell their products and services.

Besides, you mentioned the Mainland just now. So in our results announcement, so we have JOS, China and JOS Macau. So JOS is Jardine office system in the past. And later on, it was rebranded. So regarding JOS customers, they are mainly on the Mainland. And they can see 2 things. First, going abroad. So going overseas, for us, relatively speaking, our growth is very fast. So if you look at our data service, our overseas development is fast.

Besides, another point is related to the entrance of China Mobile Hong Kong, and that is about the layout in the GBA. So in the future, we can see that there is growth potential. So on many points, we are considering many areas. Today, we have China Mobile Hong Kong to help us. So we believe that in the future, our growth will be faster and better.

Okay. Thank you, management, for the detailed answer. Thank you, investors, for the questions. So we will conclude the Q&A session here, and our results announcement is also concluded here. Thank you for your long-term interest and support.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]