Market Overview - The Hong Kong stock market experienced a decline on August 1, with the Hang Seng Index falling by 1.07% to close at 24,507.81 points [1] - The Hang Seng Tech Index decreased by 1.02% to 5,397.40 points, while the National Enterprises Index dropped by 0.88% to 8,804.42 points [1] - The main board recorded a trading volume exceeding 254.6 billion HKD, with 608 stocks rising, 1,578 falling, and 972 remaining unchanged [1] Sector Performance - Most sectors saw declines, particularly in insurance, brokerage, biomedicine, and oil and gas [1] - Mixed performance was noted in banking, real estate, and coal sectors, while online retail, telecommunications services, and gold and precious metals sectors generally saw gains [1] Notable Stocks - Zijin Mining rose by 0.95%, while Shandong Gold fell by 0.21% [1] - NIO increased by 8.62%, and China Jinmao rose by 8.39% [1] - ZTO Express gained 7.44%, and Xiaomi Group increased by 0.47% [1] - China National Petroleum Corporation dropped by 5.87%, and Guotai Junan International fell by 10.78% [1] - In terms of significant gains, InnoCare Pharma surged by 30.91% [1] Top Traded Stocks - Tencent Holdings saw a decline of 2.73% with a trading volume exceeding 11.5 billion HKD [2] - Alibaba increased by 1.04%, with a trading volume over 8.8 billion HKD [2] - Meituan rose by 0.49%, with a trading volume exceeding 6.8 billion HKD [2]

Core Viewpoint - The company reported a revenue of HKD 18.922 billion for the six months ending June 30, 2025, representing a year-on-year increase of 6.92% and a narrowed shareholder loss of HKD 445 million, down 3.68% from the previous year [1] Financial Performance - Revenue for the first half of the year reached HKD 18.922 billion, up 6.92% year-on-year [1] - Shareholder loss was HKD 445 million, a reduction of 3.68% compared to the same period last year [1] - Basic loss per share was HKD 0.0575 [1] - Proposed interim dividend is HKD 0.0977 per share [1] Business Development - The company continues to enhance its penetration and user engagement in Southeast Asia through its Viu streaming service, which offers high-quality localized content [1] - Viu has reached 13.8 million paid users across 15 markets in Southeast Asia, the Middle East, and South Africa, with significant growth in Thailand, the Philippines, and Malaysia [1] - The flexible dual revenue model of Viu aims to expand and enrich content offerings to cater to diverse entertainment preferences of users and subscribers [1] Technological Advancements - The company is committed to becoming a leader in providing AI technologies and applications to individuals and businesses, leveraging its high bandwidth and low-latency fiber and mobile networks [1] - The application of AI is expected to reshape operations, drive business growth, and significantly enhance productivity [1] - Despite a challenging environment in the first half of the year, the company demonstrated resilience with revenue and EBITDA growth of 4% and 3% respectively, contributing to a 3% increase in adjusted cash flow [1]

Core Viewpoint - Hong Kong Telecommunications-SS reported a 4% year-on-year increase in total revenue for the first half of 2025, reaching HKD 17.322 billion, 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, making it the largest component of local telecommunications services, accounting for 79% of total 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 Services Performance - Mobile communications service revenue increased by 5% to HKD 4.189 billion, driven by growth in roaming services, an expanding postpaid customer base, increased wholesale revenue, and rising demand for enterprise solutions utilizing 5G and IoT technologies [1]

Group 1 - KX-826 1.0% treatment for androgenetic alopecia has completed patient enrollment in Phase III clinical trial with a total of 666 patients [1] - The Phase III trial is designed as a seamless II/III phase study, with the II phase achieving primary endpoints with statistical significance and clinical relevance [1] - The trial is multi-center, randomized, double-blind, and placebo-controlled, assessing the efficacy and safety of KX-826 1.0% and 0.5% in Chinese adult male AGA patients [1] Group 2 - Hong Kong Telecom reported a 4% increase in total revenue to HKD 17.322 billion for the first half of the year [2] - Qingdao Bank's net profit for the first half of the year reached CNY 3.065 billion, a year-on-year increase of 16.05% [2] - Green Tea Group expects a profit of CNY 230 million to 237 million for the first half of the year, representing a year-on-year growth of 32% to 36% [2] Group 3 - Hengrui Medicine received approval for clinical trials of HRS-5041 tablets and other drugs [3] - Hengrui also received approval for clinical trials of SHR-8068 injection, Adalimumab injection, and Bevacizumab injection [3] Group 4 - Lee's Pharmaceutical's Socazolimab has been approved for first-line treatment of extensive-stage small cell lung cancer in mainland China [4] - Yihua Holdings plans to sell a property in Weihai for CNY 64.1077 million [4] - Dexin Services Group intends to acquire 100% equity of Deqing Mogan Mountain Ruijun Real Estate [4]

Core Viewpoint - Hong Kong Telecommunications reported a 4% year-on-year increase in profit attributable to shareholders for the first half of 2025, driven by growth in local data services and telecommunications revenue [1] Financial Performance - Total revenue increased by 4% to HKD 17.322 billion [1] - EBITDA rose by over 3% to HKD 6.38 billion [1] - Profit attributable to shareholders increased by 4% to HKD 2.07 billion [1] - Basic earnings per share were HKD 0.2732 [1] - Interim dividend per share was HKD 0.3380 [1] Revenue Breakdown - Local data service revenue grew by 8% to HKD 6.867 billion [1] - Local telecommunications service revenue increased by 5% to HKD 8.714 billion [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 - The company has entered into an agreement to acquire all issued shares of Telecom Digital Securities Limited for HKD 40 million, aiming to diversify its business and revenue sources by entering the Hong Kong financial and securities market [1][2] Group 1: Acquisition Details - The acquisition is set to be completed by July 29, 2025, with the buyer being a wholly-owned subsidiary of the company [1] - The target company is licensed by the Securities and Futures Commission to conduct regulated activities under the Securities and Futures Ordinance, primarily providing agency services for securities and futures contract trading in Hong Kong [1] Group 2: Market Context - The acquisition is positioned to capitalize on the strong recovery of the capital market, with the average daily trading volume in the Hong Kong stock market exceeding HKD 200 billion since the beginning of 2025, driven by local and international investor participation [1] - The company holds a cautiously optimistic view on market prospects due to improved market liquidity, sentiment, and valuation recovery [1] Group 3: Synergies and Benefits - The acquisition is expected to create synergies with the company's existing business, enhancing the target company's operations and expansion through the company's financial strength and long-standing reputation in Hong Kong [2] - It will provide unique promotional opportunities, increasing the target company's brand awareness among the company's extensive customer base while promoting the company's telecom services to the target company's clients, thereby expanding market coverage for both entities [2]

Group 1 - Li Ka-shing's son, Li Zekai, founded FWD Group, which officially listed on the Hong Kong Stock Exchange on July 7, marking his fourth acquisition of a listed company [2] - Li Zekai has a bold investment style, having previously achieved a nearly 40-fold increase in stock price within a week after acquiring a company valued at over 300 million HKD [2] - He successfully acquired a 54% stake in Hong Kong Telecom for 13 billion USD, using the yet-to-be-acquired telecom as collateral, completing the largest merger in the Hong Kong market in just 18 days [2] Group 2 - Li Zekai aims to build an insurance company covering all of Asia, with acquisitions in Hong Kong, Vietnam, Japan, and Malaysia, making FWD Group the fastest-growing insurance giant in Southeast Asia [3] - From 2012 to the present, FWD Group has made over ten acquisitions, increasing its annual new premium to over 1.9 billion USD, more than five times the amount from ten years ago [3] - Despite the aggressive expansion, FWD Group's operational capabilities appear average, with only Hong Kong Telecom generating consistent profits, while the parent company, PCCW, has struggled financially [4] Group 3 - FWD Group's increasing debt, exceeding 3.6 billion USD as of April this year, has hindered its expansion into mainland China, delaying Li Zekai's Asian strategy [4] - To support FWD's listing and continued acquisitions, Li Zekai has engaged wealthy investors from the Middle East and Japan, indicating ongoing capital operations [4] - The strategy of burning cash for growth is expected to continue as FWD Group seeks to expand its market presence [4]

Core Viewpoint - The article highlights that state-owned enterprises (SOEs) in China, characterized by low valuations, high profitability, and substantial dividends, have become a safe haven for investors amid rising geopolitical tensions and market volatility [1][2]. Group 1: Market Performance - The Hang Seng China SOE Index has increased by over 4.5% since June 1, 2023, and nearly 20% over the past year, outperforming other indices [1]. - The index has risen by 21.08% since its launch on April 17, 2023, significantly surpassing the Hang Seng Index's 17.72% and the Shanghai Composite Index's 1.51% during the same period [2]. Group 2: Sector Analysis - The top three sectors by weight in the Hang Seng China SOE Index are finance (43.4%), energy (22.4%), and telecommunications (17.1%), all of which are high-dividend sectors [2]. - Major companies in the top ten weighted stocks include China Construction Bank, Industrial and Commercial Bank of China, China Mobile, China National Offshore Oil Corporation, and Semiconductor Manufacturing International Corporation [2]. Group 3: Policy and Reform - The upcoming Central Economic Work Conference in 2024 aims to enhance state-owned enterprise reforms, which are expected to provide new growth momentum and improve performance [2]. - The market anticipates that these reforms will lead to significant improvements in the operational efficiency and profitability of SOEs [2]. Group 4: Future Outlook - The current low valuation levels of SOEs, combined with accelerated mergers and acquisitions, are expected to raise the valuation center of these enterprises [3]. - The low interest rate environment may encourage long-term funds, such as insurance and pension funds, to increase their allocation to high-dividend SOEs [3]. - Improved liquidity in the Hong Kong stock market, driven by enhanced trading mechanisms and increased southbound capital inflows, is likely to benefit the Hang Seng China SOE Index [3].