Core Insights - Hong Kong Telecommunications-SS (06823.HK) has expanded its leading position in the broadband market, with fiber-to-home connections increasing by 3% to 1.055 million [1] - The user base for 2.5G services has grown by 141%, while 5G customer base increased by 21% to 1.894 million [1] - Mobile communication service revenue rose by 5% due to higher roaming income, and enterprise business revenue grew by 11%, securing over HKD 2.2 billion in new project orders in the first half of 2025 [1] Financial Performance - Total revenue increased by 4% to HKD 17.322 billion, while total revenue excluding mobile communication product sales also rose by 4% to HKD 16.311 billion [1] - EBITDA grew by over 3% to HKD 6.380 billion, driven by the application of artificial intelligence to enhance workflow efficiency and optimize costs [1] - Adjusted cash flow increased by 3% to HKD 2.562 billion, and profit attributable to shareholders rose by 4% to HKD 2.070 billion [1] - Basic earnings per share were HKD 0.2732, with an interim dividend of HKD 0.3380 per share [1]

Core Viewpoint - Hong Kong Telecommunications-SS (06823) reported a 4% year-on-year increase in total revenue to HKD 17.322 billion for the mid-year 2025 results, driven by growth in local data services and telecommunications services [1] Financial Performance - Total revenue increased by 4% to HKD 17.322 billion [1] - EBITDA rose over 3% to HKD 6.380 billion [1] - Profit attributable to shareholders increased by 4% to HKD 2.07 billion [1] - Basic earnings per share were HKD 0.2732, with an interim dividend of HKD 0.3380 per share [1] Revenue Breakdown - Local data service revenue grew by 8% to HKD 6.867 billion, constituting 79% of local telecommunications service revenue [1] - Local telecommunications service revenue increased by 5% to HKD 8.714 billion [1] - Revenue from pay television services was HKD 1.16 billion, while local telephone service revenue was HKD 0.953 billion [1] - International telecommunications service revenue grew by 1% to HKD 3.813 billion [1] - Total telecommunications service revenue rose by 4% to HKD 12.527 billion [1] Mobile Communications Business - Service revenue from mobile communications increased by 5% to HKD 4.189 billion [1] - Growth was driven by increased roaming services, an expanding postpaid customer base, higher wholesale revenue, and rising demand for enterprise solutions utilizing 5G and IoT technologies [1]

Core Insights - Hong Kong Telecommunications-SS (06823) reported a 4% year-on-year increase in total revenue to HKD 17.322 billion for the mid-year 2025 [1] - EBITDA rose over 3% to HKD 6.380 billion, while profit attributable to shareholders increased by 4% to HKD 2.07 billion [1] - Basic earnings per share were HKD 0.2732, with an interim dividend of HKD 0.3380 per share [1] Revenue Breakdown - Local data service revenue grew by 8% to HKD 6.867 billion, driving local telecommunications service revenue up by 5% to HKD 8.714 billion [1] - Local data services accounted for 79% of local telecommunications service revenue [1] - Pay TV services generated revenue of HKD 1.16 billion, while local telephone service revenue was HKD 0.953 billion [1] - International telecommunications service revenue increased by 1% to HKD 3.813 billion, contributing to a total telecommunications service revenue increase of 4% to HKD 12.527 billion [1] Mobile Services Performance - Mobile communications service revenue grew by 5% to HKD 4.189 billion, driven by increased roaming services, an expanding postpaid customer base, rising wholesale revenue, and growing demand for enterprise solutions utilizing 5G and IoT technologies [1]

Core Viewpoint - Hong Kong Telecommunications-SS (06823) announced a mid-term dividend of HKD 0.338 per share, to be distributed on September 4, 2025 [1] Company Summary - The company will distribute a mid-term dividend of HKD 0.338 per share [1]

智通财经APP讯，香港电讯-SS(06823)发布公告，该公司将于2025年9月4日派发中期股息每股0.338港 元。 ...

EF001 免責聲明 EF001 發行人所發行上市權證/可轉換債券的相關信息 發行人所發行上市權證/可轉換債券 不適用 其他信息 備註： 1. 香港電訊信託是一個根據香港法律於2011年11月7日成立並由香港電訊管理有限公司（以其作為香港電訊信託託管人－ 經理身 份）（「託管人－經理」）管理的信託。 2. 香港電訊有限公司（「本公司」）是一家於開曼群島註冊成立的有限公司。 3. 每個香港電訊信託與香港電訊有限公司的股份合訂單位將下列證券或證券權益合併，而根據託管人－經理與本公司於2011年11 月7日簽立構成香港電訊信託的信託契約（經不時修訂、補充、取代或以其他方式更改的版本）（「信託契約」）的條文規定，有 關證券或證券權益僅可一併買賣，不得單獨或個別買賣： | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 香港電訊信託與香港電訊有限公司 | | | 股 ...

[Performance Summary](index=1&type=section&id=Performance%20Summary) [H1 2025 Performance Highlights](index=1&type=section&id=H1%202025%20Performance%20Highlights) HKT achieved robust H1 2025 growth in key financials, driven by expanding broadband, 5G, and strong enterprise business performance H1 2025 Key Financial and Operational Metrics | Metric | H1 2025 Performance | | :--- | :--- | | **Total Revenue** | HKD 17.322 billion (4% growth) | | **Total Revenue (excluding mobile product sales)** | HKD 16.311 billion (4% growth) | | **Total EBITDA** | HKD 6.380 billion (>3% growth) | | **Adjusted Funds Flow** | HKD 2.562 billion (3% growth) | | **Profit Attributable to Stapled Unitholders** | HKD 2.070 billion (4% growth) | | **Basic Earnings Per Stapled Unit** | 27.32 HK cents | | **Interim Distribution Per Stapled Unit** | 33.80 HK cents | | **Total Fiber-to-the-Home Connections** | 1.055 million lines (3% growth) | | **5G Customer Base** | 1.894 million (21% growth) | - Enterprise business achieved **11% revenue growth** and secured over **HKD 2.2 billion** in new project orders during the first half[3](index=3&type=chunk) [Letter to Stapled Unitholders](index=2&type=section&id=Letter%20to%20Stapled%20Unitholders) [Operating Environment and Overall Performance](index=2&type=section&id=Operating%20Environment%20and%20Overall%20Performance) Despite geopolitical instability and weak local consumption, the company achieved robust 4% total revenue and over 3% EBITDA growth, with adjusted funds flow expected to accelerate Key Financial Performance (H1 2025) | Financial Metric | Amount (HKD) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 17.322 billion | 4% | | EBITDA | 6.380 billion | >3% | | Adjusted Funds Flow | 2.562 billion | 3% | [AI Innovation Drives Growth](index=2&type=section&id=AI%20Innovation%20Drives%20Growth) AI integration across operations enhances efficiency, optimizes costs, and drives productivity, achieving 7% annual cost savings - The company is integrating AI into business operations to deliver superior services, expand enterprise offerings, and optimize internal processes, driving future growth[5](index=5&type=chunk) - By reshaping workflows with AI technologies like intelligent automation and predictive analytics, productivity has significantly improved, leading to **7% annual cost savings** overall[10](index=10&type=chunk) [Core Business Growth Drivers](index=2&type=section&id=Core%20Business%20Growth%20Drivers) Core businesses saw significant 5G and fiber subscriber growth, alongside strong enterprise performance with over HKD 2.2 billion in new orders Key Core Business Metrics | Business Metric | Performance | YoY Growth | | :--- | :--- | :--- | | 5G Mobile Customers | 1.894 million | 21% | | 2.5G Fiber Service Customers | N/A | 141% | - HKT Enterprise Solutions secured new project orders totaling over **HKD 2.2 billion** in the first half[9](index=9&type=chunk) - The company assisted mainland Chinese enterprises in establishing footholds in Southeast Asian markets like Thailand, Malaysia, Indonesia, and Vietnam via SD-WAN solutions[9](index=9&type=chunk) [Outlook](index=3&type=section&id=Outlook) Continued investment in AI innovation and global network connectivity will support Hong Kong's digital economy and create long-term value - The company plans to participate in developing the Pan Asia Express and Asia-Africa-Europe-2 submarine cable systems, expanding its global network through low-earth orbit satellite connectivity[9](index=9&type=chunk) - The company is committed to continuous investment in AI innovation to drive HKT's growth and enable customer success[12](index=12&type=chunk) [Financial and Operational Review](index=5&type=section&id=Financial%20and%20Operational%20Review) [Financial Summary](index=5&type=section&id=Financial%20Summary) The Group achieved 4% revenue growth and over 3% EBITDA increase in H1 2025, with profit attributable to unitholders also rising 4% due to lower finance costs Group Financial Summary | Metric (HKD million) | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 17,322 | 16,669 | 4% | | Total EBITDA | 6,380 | 6,168 | 3% | | Profit Before Tax | 2,712 | 2,334 | 16% | | Adjusted Funds Flow | 2,562 | 2,495 | 3% | [Operating Data Summary](index=6&type=section&id=Operating%20Data%20Summary) As of June 2025, total broadband lines slightly increased, postpaid mobile subscribers grew 1%, and The Club membership expanded 3% Key Operating Data | Operating Item (thousand) | June 30, 2025 | June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Telephone Lines | 2,070 | 2,168 | (5)% | | Total Broadband Lines | 1,657 | 1,646 | 1% | | Mobile Customers | 4,875 | 4,884 | ‒ | | - Postpaid Customers | 3,478 | 3,433 | 1% | | - Prepaid Customers | 1,397 | 1,451 | (4)% | | Installed Pay TV Customers | 1,448 | 1,430 | 1% | | The Club Members | 4,070 | 3,939 | 3% | [Segment Performance](index=8&type=section&id=Segment%20Performance) Both core telecommunications and mobile segments achieved year-on-year revenue and EBITDA growth, driven by local data services, roaming recovery, and 5G upgrades [Telecommunications Services](index=8&type=section&id=Telecommunications%20Services) Telecommunications services revenue grew 4% to HKD 12.527 billion and EBITDA 3% to HKD 4.421 billion, driven by local data services and strong enterprise business Telecommunications Services Segment Performance | Metric (HKD million) | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Local Telecommunications Services Revenue | 8,714 | 8,289 | 5% | | International Telecommunications Services Revenue | 3,813 | 3,774 | 1% | | **Total Telecommunications Services Revenue** | **12,527** | **12,063** | **4%** | | **EBITDA** | **4,421** | **4,296** | **3%** | - Local data services revenue increased **8%** year-on-year to **HKD 6.867 billion**, primarily driven by broadband and enterprise business growth[18](index=18&type=chunk)[19](index=19&type=chunk) - Fiber-to-the-home (FTTH) connections reached **1.055 million**, a **3%** year-on-year increase, while the 2.5G service customer base grew **141%** year-on-year[20](index=20&type=chunk) - Enterprise business local data revenue grew **11%** year-on-year, with new orders totaling over **HKD 2.2 billion** in the first half[21](index=21&type=chunk)[22](index=22&type=chunk) [Mobile](index=11&type=section&id=Mobile) Mobile business revenue grew 5% to HKD 5.200 billion and EBITDA 5% to HKD 2.412 billion, driven by roaming recovery, 5G upgrades, and enterprise solution demand Mobile Segment Performance | Metric (HKD million) | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Mobile Services Revenue | 4,189 | 3,990 | 5% | | Mobile Product Sales | 1,011 | 986 | 3% | | **Total Mobile Revenue** | **5,200** | **4,976** | **5%** | | **EBITDA** | **2,412** | **2,302** | **5%** | - Total roaming revenue increased **7%** year-on-year, with personal outbound roaming revenue reaching **141%** of pre-pandemic levels[26](index=26&type=chunk) - 5G postpaid subscribers reached **1.894 million**, a **21%** year-on-year increase, accounting for over **54%** of the postpaid customer base[26](index=26&type=chunk) - Postpaid ARPU increased to **HKD 193** (YoY +1%), with core business postpaid churn remaining low at **0.7%**[27](index=27&type=chunk) [Other Businesses and Cost Analysis](index=12&type=section&id=Other%20Businesses%20and%20Cost%20Analysis) Other business revenue slightly increased by 3%, while operating costs excluding depreciation and amortization decreased 4% year-on-year through AI and streamlined structures - Other business revenue increased **3%** to **HKD 570 million**, with The Club membership expanding **3%** to **4.07 million** members[28](index=28&type=chunk) - Cost of sales increased **6%** to **HKD 9.021 billion** due to changes in revenue mix[30](index=30&type=chunk) - Operating costs excluding depreciation and amortization decreased **4%** year-on-year to **HKD 1.921 billion** through measures like AI-driven workflow re-engineering[31](index=31&type=chunk) [Key Financial Metrics Analysis](index=13&type=section&id=Key%20Financial%20Metrics%20Analysis) Total EBITDA grew over 3% due to business expansion and cost optimization, while net finance costs significantly decreased 19%, leading to a 4% increase in profit attributable to unitholders - Total EBITDA increased over **3%** to **HKD 6.380 billion**, with the overall EBITDA margin remaining stable at **37%**[32](index=32&type=chunk) - Net finance costs significantly decreased **19%** from **HKD 1.092 billion** to **HKD 885 million**[33](index=33&type=chunk) - Profit attributable to stapled unitholders increased **4%** to **HKD 2.070 billion**[36](index=36&type=chunk) [Capital Management and Liquidity](index=13&type=section&id=Capital%20Management%20and%20Liquidity) [Capital Structure and Liquidity](index=13&type=section&id=Capital%20Structure%20and%20Liquidity) As of June 30, 2025, the Group maintained ample liquidity with HKD 1.940 billion cash and HKD 15.973 billion undrawn facilities, alongside investment-grade credit ratings Capital Structure and Liquidity Overview | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt | HKD 43.433 billion | HKD 41.723 billion | | Cash and Short-Term Deposits | HKD 1.940 billion | HKD 2.145 billion | | Undrawn Bank Facilities | HKD 15.973 billion | N/A | - The company maintains investment-grade credit ratings of Moody's "Baa2" and S&P "BBB"[38](index=38&type=chunk) [Capital Expenditure](index=14&type=section&id=Capital%20Expenditure) H1 2025 capital expenditure was HKD 1.075 billion (6.2% of revenue), a year-on-year decrease, focused on enterprise solutions and network efficiency - Capital expenditure was **HKD 1.075 billion**, a year-on-year decrease, with its revenue ratio falling from **6.6%** in the prior period to **6.2%**[39](index=39&type=chunk) [Adjusted Funds Flow Analysis](index=14&type=section&id=Adjusted%20Funds%20Flow%20Analysis) Adjusted funds flow increased 3% year-on-year to HKD 2.562 billion, with operating adjusted funds flow growing 8% due to expanded EBITDA and improved capital efficiency - Total adjusted funds flow increased **3%** from **HKD 2.495 billion** in the prior period to **HKD 2.562 billion**[40](index=40&type=chunk) - Operating adjusted funds flow (excluding tax paid, net finance costs paid, and working capital changes) increased **8%** in H1 2025[40](index=40&type=chunk) [Other Important Matters](index=15&type=section&id=Other%20Important%20Matters) [Risk Management and Human Resources](index=15&type=section&id=Risk%20Management%20and%20Human%20Resources) The Group manages foreign currency and interest rate risks with derivatives, has no material asset pledges, reduced contingent liabilities, and over 12,500 global employees - The Group manages foreign currency exchange rate and interest rate risks through forward and swap contracts, deeming their impact immaterial[41](index=41&type=chunk)[42](index=42&type=chunk) - As of June 30, 2025, the Group had no pledged assets, and contingent liabilities amounted to **HKD 799 million**[43](index=43&type=chunk)[44](index=44&type=chunk) - As of June 30, 2025, the Group employed over **12,500** staff globally[45](index=45&type=chunk) [Interim Distribution and Shareholder Matters](index=16&type=section&id=Interim%20Distribution%20and%20Shareholder%20Matters) The Board declared an interim distribution of 33.80 HK cents per stapled unit, with no purchases, sales, or redemptions of listed securities during the period - An interim distribution of **33.80 HK cents** per stapled unit was declared[46](index=46&type=chunk) - During the reporting period, neither HKT Trust, the company, nor its subsidiaries purchased, sold, or redeemed any stapled units[48](index=48&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, largely complying with the Code, with the Audit Committee reviewing interim financial information - The Audit Committee reviewed the accounting policies adopted by the Group and the Trustee-Manager, as well as the unaudited condensed consolidated interim financial information[49](index=49&type=chunk) - During the reporting period, the company applied the principles of the Corporate Governance Code and complied with all relevant code provisions, except for those related to establishing independent remuneration and nomination committees due to its unique trust structure[50](index=50&type=chunk) [Condensed Consolidated Financial Statements](index=18&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=18&type=section&id=Consolidated%20Income%20Statement) For H1 2025, profit for the period increased 15.4% to HKD 2.298 billion, with basic earnings per stapled unit rising to 27.32 HK cents Consolidated Income Statement Summary | Metric (HKD million) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 17,322 | 16,669 | | Profit Before Tax | 2,712 | 2,334 | | Profit for the Period | 2,298 | 1,992 | | Profit Attributable to Stapled Unitholders | 2,070 | 1,990 | | Basic Earnings Per Stapled Unit | 27.32 HK cents | 26.27 HK cents | [Consolidated Statement of Comprehensive Income](index=19&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Other comprehensive loss for the period was HKD 579 million, primarily due to fair value changes in financial assets and cash flow hedges, decreasing total comprehensive income - Other comprehensive loss for the period was **HKD 579 million**, mainly due to fair value changes in financial assets (loss of **HKD 225 million**) and net losses on cash flow hedges[53](index=53&type=chunk) [Consolidated Statement of Financial Position](index=20&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 118.499 billion, total liabilities HKD 80.619 billion, and net assets HKD 37.880 billion Consolidated Statement of Financial Position Summary | Metric (HKD million) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **118,499** | **116,813** | | - Non-Current Assets | 107,812 | 105,928 | | - Current Assets | 10,687 | 10,885 | | **Total Liabilities** | **80,619** | **77,168** | | - Non-Current Liabilities | 58,369 | 51,347 | | - Current Liabilities | 22,250 | 25,821 | | **Net Assets** | **37,880** | **39,645** | [Notes to the Financial Statements](index=22&type=section&id=Notes%20to%20the%20Financial%20Statements) Financial statements are prepared under HKAS 34 on a going concern basis, with detailed disclosures on segments, taxation, dividends, and receivables/payables aging - The financial statements are prepared on a going concern basis, as management believes the Group can meet its obligations maturing within the next 12 months, considering operating cash inflows and undrawn bank facilities[63](index=63&type=chunk) - The Group's operations are managed and assessed across three main segments: Telecommunications Services, Mobile, and Other Businesses[66](index=66&type=chunk) - The Group has assessed the impact of the Global Anti-Base Erosion (GloBE) rules (Pillar Two) and determined there are no significant tax risks as of the reporting date[71](index=71&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 4% growth in revenue, exceeding USD 2.2 billion, with EBITDA improving by 3% to USD 818 million [3][20] - The Adjusted Funds From Operations (AFF) grew by 3% to USD 328 million, leading to an interim dividend declaration of HKD 33.8 per share [3][20] Business Line Data and Key Metrics Changes - The enterprise segment saw an 11% year-on-year revenue growth, driven by a 14% increase in cloud projects and a 6% growth in high bandwidth fiber lines [11][20] - Mobile services revenue grew by 5%, with a significant increase in roaming revenue by 7%, reaching 104% of pre-pandemic levels [8][24] - Fixed broadband subscriber base grew by over 140%, contributing to a 3% overall growth in fiber users [10][21] Market Data and Key Metrics Changes - The China revenue grew by 13%, supported by demand for SD WAN services and data center uptake by Mainland Chinese entities [13] - The mobile business added 45,000 new customers, with a 21% increase in 5G subscribers, reaching a penetration rate of 54% [9][25] Company Strategy and Development Direction - The company is focusing on AI technology to enhance customer offerings and improve operational efficiency, achieving a 7% cost savings across the overall cost base [4][18] - Continued investment in digital infrastructure, including a 100 terabit core backbone network and expansion of 5G capabilities [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about enterprise growth, targeting 10% to 12% for the full year, supported by a healthy project pipeline and economic recovery in Hong Kong [35][36] - The company anticipates sustained growth in roaming revenue due to increased consumer outbound travel and commercial activities [37][38] Other Important Information - The company achieved a stable EBITDA margin of 37% and improved its gross debt to EBITDA ratio to 3.11x [20][31] - The company maintains a BBB investment grade rating and has sufficient liquidity to manage upcoming bond maturities [32][33] Q&A Session Summary Question: What is the guidance for interest costs in the second half? - Management expects full-year interest savings to be at least 25% to 30% assuming no significant spikes in interest rates [34] Question: Will enterprise growth of 11% be maintained for the full year 2025? - Management is optimistic about maintaining 10% to 12% growth for the full year, supported by a healthy pipeline and economic recovery [35][36] Question: Do you expect strong roaming revenue growth to be maintained for the remainder of 2025? - Management is positive about maintaining growth in roaming revenue due to increased consumer and commercial activities [37][38] Question: Is it possible to capitalize on low interest rates through refinancing into more floating debt? - Management indicated a willingness to leverage low rates while maintaining a prudent balance between fixed and floating debt [40] Question: What is the outlook for working capital in the second half? - Management expects better working capital management in the second half, as the first half typically requires higher funding [41] Question: Is there guidance for full-year growth in AFF? - Management is optimistic that AFF growth will exceed 3% for the full year [42]

Financial Data and Key Metrics Changes - The company reported a 4% growth in total revenue, exceeding USD 2.2 billion, with EBITDA improving by 3% to USD 818 million and AFF growing to USD 328 million [3][20][28] - The interim dividend declared was HKD 33.8 per share [3] - The gross debt decreased to USD 5.57 billion, improving the gross debt to EBITDA ratio to 3.11x [30] Business Line Data and Key Metrics Changes - The enterprise segment saw an 11% year-on-year revenue growth, driven by a 14% increase in cloud projects and a 6% growth in high bandwidth fiber lines [10][21] - Mobile services revenue grew by 5%, with a net addition of 45,000 customers and an ARPU increase to USD 193 [7][23] - Fixed broadband subscriber base grew by over 140%, contributing to a 3% increase in fiber users [9][21] Market Data and Key Metrics Changes - China revenue grew by 13%, supported by demand for SD WAN services and data center uptake [12] - Roaming revenue increased by 7%, reaching 104% of pre-pandemic levels, with active roaming penetration rising to 59% [7][23] - The number of 5G subscribers reached nearly 1.9 million, representing a 21% year-on-year increase [8][24] Company Strategy and Development Direction - The company is focusing on AI technology to enhance customer offerings and improve operational efficiency, achieving a 7% cost savings across the overall cost base [4][18] - Investments in digital infrastructure, including a 100 terabit core backbone network, are aimed at supporting high bandwidth requirements for AI and cloud computing [5][10] - The company is expanding its digital ecosystem through loyalty platforms and telemedicine services, targeting customer acquisition and retention [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about enterprise growth, targeting 10% to 12% for the full year, supported by a healthy project pipeline and economic recovery in Hong Kong [35][36] - The company anticipates continued growth in roaming revenue due to increased travel activities and mega events [37][38] - Management highlighted the positive impact of lower interest costs and a strengthened balance sheet on future growth prospects [18][34] Other Important Information - The company received an MSCI AA ESG rating for the fifth consecutive year, reflecting its commitment to sustainability and community engagement [17] - The company is actively managing its working capital, expecting improvements in the second half of the year [41] Q&A Session Summary Question: What is the guidance for interest costs in the second half? - Management expects full-year interest savings to be at least 25% to 30% [34] Question: Will enterprise growth of 11% be maintained for the full year 2025? - Management is optimistic, targeting 10% to 12% growth for the full year [35][36] Question: Do you expect strong roaming revenue growth to be maintained for the remainder of 2025? - Management is positive about maintaining growth in roaming revenue due to increased travel and events [37][38] Question: Is it possible to capitalize on low interest rates through refinancing into more floating debt? - Management indicated a willingness to leverage low rates while maintaining a prudent balance [39][40] Question: What is the outlook for working capital in the second half? - Management expects better working capital management in the second half [41] Question: Is there guidance for full-year growth in AFF? - Management is optimistic that growth will be better than 3% [42]

Core Insights - Stablecoins serve as a "dual currency" between decentralized digital currencies and fiat currencies, offering advantages in payment convenience, privacy protection, and value stability, thus becoming a low-cost, high-efficiency payment tool [1] - The recent regulatory policies in the US and Hong Kong have initiated a new "currency war," positioning the stablecoin market as a critical battleground for maintaining US dollar hegemony and promoting the internationalization of the Chinese yuan [1] Group 1: Definition and Mechanism of Stablecoins - Stablecoins are special digital currencies issued by stablecoin developers, large e-commerce companies, and licensed financial institutions, combining the advantages of digital currencies and fiat currencies [2] - The core technology of stablecoins is based on decentralized distributed ledger technology within blockchain systems, enabling direct payment transactions without traditional banking intermediaries [2] Group 2: Types and Issuance Mechanisms of Stablecoins - The main issuance mechanisms for stablecoins include fiat currency collateralized issuance, cryptocurrency collateralized issuance, high liquidity commodity collateralized issuance, and algorithmic uncollateralized issuance, with fiat and cryptocurrency collateralized issuance accounting for over 99.8% of the market [3][4] - Fiat currency collateralized stablecoins are pegged to a single currency or a basket of fiat currencies, while cryptocurrency collateralized stablecoins use cryptocurrencies as collateral, often employing over-collateralization to mitigate market risks [3][4] Group 3: Market Value and Growth of Stablecoins - Since 2020, the stablecoin market has grown from 5 billion to 250 billion USD, with an annual growth rate exceeding 100%, and transaction volumes approaching 37 trillion USD [7] Group 4: Regulatory Landscape and Market Analysis - The regulatory frameworks in China, Hong Kong, and the US differ significantly, with China prioritizing financial sovereignty, Hong Kong focusing on market development, and the US emphasizing the control of underlying technologies to maintain dollar dominance [11][8] - The US stablecoin market is dominated by USDT and USDC, which together account for over 80% of the market share [10] Group 5: Recent Regulatory Developments - The US Senate passed the "GENIUS Act" on May 19, 2025, establishing a federal regulatory framework for stablecoins, requiring issuers to obtain licenses and maintain a 1:1 collateralization ratio with high liquidity assets [14][15] - Hong Kong's "Stablecoin Ordinance," effective August 1, 2025, introduces a licensing regime for stablecoin issuers, ensuring 100% reserve requirements and enhancing market transparency [16][17] Group 6: Applications in Cross-Border Payments and E-commerce - Stablecoins are positioned as a solution to the inefficiencies of traditional cross-border payment systems, significantly reducing costs and transaction times [32] - Major e-commerce giants like JD.com and Ant Group are exploring the issuance of their own stablecoins to enhance financial capabilities and streamline cross-border transactions [35]