Financial Data and Key Metrics Changes - Revenue, EBITDA, net profits, and AFF all showed growth, with EBITDA growing by 5% year-on-year, which is among the best in the market [3][4][35] - Net income for the first half reached $108 million, with a stable AFF growth of 2% [36] - Cash increased by 34% to over $1 billion, and the net leverage ratio improved to 4.79, a reduction of more than 0.5 compared to the previous year [37][38] Business Line Data and Key Metrics Changes - Enterprise Solutions revenue grew by 4%, with Core Telecom revenue increasing by 2% and System Integration ICT business growing by 10% [6][34] - Residential Solutions saw core telecom revenue grow by 1%, with ARPU increasing by 3% and average revenue per household (ARPH) growing by 5% to $212 [9][10][34] - The total backlog for Residential Solutions grew by 8%, indicating a healthy business outlook [10] Market Data and Key Metrics Changes - The enterprise business is experiencing strong demand for tailored solutions, with significant growth in international data average monthly fees by 40% [15] - The Gigafast campaign has led to an 80% increase in uptake of two gig plus customers in the residential segment [22] - The market for fixed broadband remains robust, with a low churn rate of below 1% for residential customers [50] Company Strategy and Development Direction - The company emphasizes three key drivers for sustainable growth: recession resistance, recurrent revenue, and robust operations [4][52] - The strategy includes bundling telecom services with ICT solutions to enhance customer value and increase margins [8][12] - The company is focusing on expanding its international presence and supporting Chinese companies in their global expansion efforts [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against geopolitical issues and macroeconomic downturns, citing the utility-like nature of the broadband business [45][46] - The company is positioned to grow in the enterprise sector, with less than 20% market share, indicating significant room for expansion [51] - Management remains focused on generating strong cash flow and continuing EBITDA growth of over 5% in the long term [40] Other Important Information - The company has successfully refinanced a $6.75 billion syndicated loan, with strong support from relationship lenders [41][42] - The introduction of new solutions, such as CyberSafe for cybersecurity, is part of the strategy to enhance service offerings and customer stickiness [20][30] Q&A Session Summary Question: To what extent do you think the current trade war affects HKBN's business? - Management stated that there is no significant impact on the business, emphasizing its robust and recession-resilient nature [62] Question: Has the acquisition of TPG's stake by China Mobile impacted your strategy? - Management indicated that the transaction is not yet complete and that the company continues to operate as usual, focusing on growth and improving cash position [70][71]

Core Viewpoint - The stock market has experienced significant volatility, with the S&P 500 down nearly 13% and the Nasdaq down almost 17%, primarily due to recession concerns driven by tariffs. Amid this environment, investing in resilient companies like Enterprise Products Partners (EPD) can help protect portfolios during market downturns [1][2]. Group 1: Recession Resistance - Enterprise Products Partners is one of the largest energy midstream companies in the U.S., operating critical infrastructure for energy commodities, which tends to have stable demand even during economic downturns [3]. - The company has a demand-based business model, with most assets under long-term, fixed-rate contracts or government-regulated rate structures, ensuring consistent cash flows that are resilient during recessions [4]. Group 2: Inflation Protection - Concerns about stagflation due to tariffs are mitigated by Enterprise Products Partners' business model, as approximately 90% of its long-term contracts include escalation provisions that protect cash flow from inflation [5]. Group 3: Financial Profile - Enterprise Products Partners has a strong financial profile, being the only midstream energy company with an A-rated credit, allowing it to borrow at lower costs and better terms compared to competitors [7]. - The company maintains a low leverage ratio of 3.1, providing financial flexibility to capitalize on opportunities during downturns [8]. Group 4: Cash Distributions - The company generates resilient, inflation-protected cash flows, enabling it to offer a distribution yield of 7.2%, significantly higher than the S&P 500's yield of less than 1.5% [9]. - Enterprise Products Partners has raised its distribution payment for 26 consecutive years, demonstrating the durability of its business model through various economic cycles [10]. - The company has $7.6 billion in major capital projects under construction, with $6 billion expected to enter commercial service this year, which will support future distribution growth [11].