Disclaimer The information, statements and opinions contained in this Presentation and subsequent discussion do not constitute an offer to sell or solicitation of any offer to subscribe for or purchase any securities or other financial instruments or any advice or recommendation in respect of such securities or other financial instruments. Potential investors and shareholders of the Hutchison Telecommunications Hong Kong Holdings Limited ("the Company") (the "Potential Investors and Shareholders") are remin ...

Market Performance - The Hang Seng Index closed at 27,027, up 1.76% with a year-to-date increase of 5.45% [1] - The Hang Seng Tech Index rose by 1.34% to 5,417, but is down 1.78% year-to-date [1] - The Shanghai Composite Index increased by 1.41% to 4,123, with a year-to-date rise of 3.89% [4] - The Dow Jones Index reached a new high, closing at 50,135, up 0.04% [4] Currency Trends - The Renminbi Index stands at 98.340, with a 1-month increase of 0.36% and a 6-month increase of 1.44% [2] - The Euro to USD exchange rate is at 1.187, reflecting a 1-month increase of 1.98% [2] Commodity Prices - Brent crude oil is priced at $67.630 per barrel, up 7.71% over the past month [3] - Gold has seen a significant increase of 11.38% in the last month, priced at $5,022.91 per ounce [3] - Silver prices have surged by 2.49% to $81.850 per ounce, with a remarkable 117.60% increase over the past six months [3] Company Financials - Hong Kong Telecom (06823) reported a 4% increase in EBITDA for the year ending December 31, 2025, with total revenue rising by 5% to HKD 365.53 billion [9] - The number of 5G plan users in Hong Kong Telecom's postpaid customer base exceeded 2 million, accounting for 60% of the total [9][10] - Local data service revenue grew by 6% to HKD 143.10 billion, contributing to a 3% increase in overall telecommunications service revenue [10] Mortgage Insurance Trends - In January, new mortgage insurance applications in Hong Kong fell by 8.7% to 460 cases, marking a 7-year low [11] - The demand for high loan-to-value mortgage insurance has decreased significantly due to relaxed mortgage policies [12] Economic Indicators - The New York Fed reported a decrease in inflation expectations to 3.1% for the next year, down from 3.4% in December [13][14] - The Federal Reserve's outlook on the U.S. fiscal situation and economic growth remains optimistic, with expectations of a significant GDP growth boost [15]

Financial Performance and Key Metrics - Total revenues in Q4 2025 increased by 7.1%, with mobile service revenue growing by 7% and fixed services by 5.4% [6][7] - EBITDA grew by 8.1% year-over-year, with a margin of 42.9%, while excluding concession migration effects, EBITDA advanced by 17.7% [6][20] - Net income for 2025 reached BRL 7.2 billion, reflecting a double-digit growth, and free cash flow increased by 11.4% to BRL 9.2 billion [6][23] - The company paid out BRL 6.4 billion to shareholders in 2025, achieving a payout ratio of 103.4% [7][24] Business Line Performance - The postpaid mobile segment saw a 6.5% year-over-year increase, reaching 70.8 million customers, representing 69% of the mobile base [5][10] - Fiber connections reached 7.8 million, with a footprint extending to 31 million homes, and FTTH accesses grew by 12% year-over-year [11][12] - New businesses generated a 27% revenue increase, now accounting for 12.1% of total revenues, with significant contributions from B2C and B2B solutions [9][14] Market Performance - The mobile customer base reached 103 million, with a 0.7% year-over-year increase, and 5G customers grew to 23.1 million, improving the take-up ratio to 27.8% [10][11] - B2B revenues amounted to BRL 13.5 billion, up 13.7% year-over-year, with digital B2B growing by 29.5% [14][15] - The fiber market share increased from 18.8% to 19.3% year-over-year, with a net addition of 834,000 customers [77] Company Strategy and Industry Competition - The company focuses on convergence, with 62.7% of FTTH customers being convergent, and aims to drive more customers to the Vivo Total offering [86][89] - The competitive environment in the fiber market remains fragmented, with potential for consolidation to improve sustainability [78][79] - The company is committed to maintaining a disciplined capital allocation strategy while exploring opportunities for M&A to strengthen its fiber footprint [93][96] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about future net income growth, driven by stable EBITDA growth and reduced depreciation starting in mid-2026 [30][31] - The company is leveraging AI to enhance operational efficiency and customer engagement, with expectations for significant cost savings [90][91] - The management remains focused on optimizing CapEx and improving the ratio of CapEx to revenues while continuing to invest in infrastructure [36][37] Other Important Information - The company achieved recognition for its sustainability efforts, ranking among the top companies in various global assessments [16][17] - The board approved a new share buyback program of up to BRL 1 billion, to be executed until February 2027 [25] Q&A Session Summary Question: Distribution strategy for 2026 - Management discussed the mix between buybacks, interest on capital, and capital reduction, emphasizing a commitment to distribute at least 100% of net income [27][28] Question: CapEx outlook for 2026 - Management highlighted ongoing CapEx optimization efforts and the importance of maintaining a balance between infrastructure investment and revenue growth [35][36] Question: Competitive environment in mobile - Management noted a stable mobile market share and emphasized the importance of retaining customers and growing ARPU without engaging in price wars [94][95] Question: Lease expenses reduction - Management explained the reduction in lease expenses due to ongoing renegotiations and expressed optimism about future trends [50][54] Question: Growth in B2B segment - Management confirmed strong growth in B2B revenues and highlighted the importance of digital services in driving future growth [68][69]

Recent Events - The company reported its Q4 2025 earnings on January 29, 2026, with adjusted earnings per share of $0.84, exceeding market expectations of $0.75, while revenue was $32.31 billion, slightly below expectations [2] - The company experienced a loss of 181,000 broadband users, but gained 364,000 mobile users, and the paid subscribers for its streaming platform Peacock increased to 44 million [2] - The company has spun off several cable networks, including CNBC, to form an independent publicly traded company named Versant, which could unlock approximately $30 billion in value, equating to about $8 per share according to Wolfe Research analyst Peter Supino [2] Future Developments - In response to competition in the broadband sector from companies like Verizon and T-Mobile's 5G services, the company is shifting its focus towards mobile business growth, with investors advised to monitor user data and new market strategies in 2026 [3] - Analysts suggest that further separation of the media, entertainment, and theme park businesses could act as a catalyst for stock price appreciation, with Moffett Nathanson analyst Craig Moffett maintaining a "buy" rating and a target price of $53 [3] - As of February 4, 2026, the company's stock price was $30.5, reflecting a 9.09% decline over the past 52 weeks, with a dividend yield close to 5% and approximately 5% of shares repurchased in the last 12 months, indicating a low valuation (P/E ratio around 6 times) that may attract long-term investors [3]

Group 1 - Lianqi Technology (澜起科技) debuted on the Hong Kong Stock Exchange on February 9, 2023, with a closing price of HKD 175 per share, marking a 63.72% increase on its first day of trading [1] - The company focuses on providing innovative, reliable, and high-efficiency interconnect solutions for cloud computing and AI infrastructure, with IPO proceeds aimed at R&D, commercialization, strategic investments, and general corporate purposes [1] - The strong market response reflects the company's technological barriers and the benefits of its sector, aligning with the demand for computing infrastructure upgrades [1] Group 2 - Tongcheng New Materials (彤程新材) has submitted a listing application to the Hong Kong Stock Exchange, with Cathay Pacific Securities as the exclusive sponsor [2] - The company is a leading comprehensive new materials service provider in China, focusing on advanced chemical products, including electronic materials and biodegradable materials [2] - The listing is expected to enhance R&D investment and global production capacity expansion, leveraging its first-mover advantage in domestic photolithography resin [2] Group 3 - China Nuclear International (中核国际) announced a positive earnings forecast, expecting revenue to reach at least HKD 2.46 billion and gross profit to increase to at least HKD 260 million in 2025 [3] - This represents a significant increase from the 2024 expected revenue of approximately HKD 1.841 billion and gross profit of HKD 234 million, driven by increased uranium trading volumes [3] - The company's growth is supported by its unique position within the China National Nuclear Corporation and the rigid demand from domestic nuclear power expansion [3] Group 4 - Hong Kong Telecommunications (香港电讯) reported a 5% year-on-year increase in total revenue for 2025, reaching HKD 36.553 billion [4] - EBITDA grew by 4% to HKD 14.234 billion, while profit attributable to shareholders increased by 4% to HKD 5.286 billion [4] - The steady growth is attributed to robust performance in 5G and data services, reinforcing its position as a leading utility provider in Hong Kong [4] Group 5 - The Hang Seng Index closed at 27,027.16, up 1.76% on February 9, 2023 [5] - The Hang Seng Tech Index rose by 1.34% to 5,417.60, while the Hang Seng Composite Index increased by 1.52% to 9,168.33 [5]

Core Viewpoint - Hong Kong Telecommunications-SS (06823) reported a profit attributable to shareholders of HKD 5.286 billion for the year ending December 31, 2025, representing a year-on-year increase of 4.26% [1] Financial Performance - Basic earnings per share unit were HKD 0.6976 [1] - The final dividend per share unit was HKD 0.4797, with total annual dividends amounting to HKD 0.8177, compared to HKD 0.788 in the previous year [1] - Total revenue reached HKD 36.553 billion, reflecting a year-on-year growth of 5.18% [1] - Total revenue excluding sales of mobile communication products was HKD 33.016 billion, showing a year-on-year increase of 3.08% [1] - EBITDA totaled HKD 14.234 billion, up 3.57%, primarily benefiting from efficiency and productivity improvements driven by artificial intelligence applications [1] Customer Growth - The company's 5G customer base grew by 20% to 2.096 million [1] - Increased roaming revenue contributed to a 5% growth in mobile communication service revenue [1]

Core Viewpoint - Hong Kong Telecommunications-SS (06823.HK) reported growth in multiple key financial metrics for the year ending December 31, 2025, driven by core business momentum, cost efficiency, and prudent capital management [1] Financial Performance - Total revenue increased by 5% to HKD 36.553 billion [1] - EBITDA rose by 4% to HKD 14.234 billion [1] - Adjusted funds flow also grew by 4% to HKD 6.199 billion [1] - Profit attributable to shareholders increased by 4% to HKD 5.286 billion [1] - Basic earnings per share were HKD 0.6976 [1] - Total dividend for the year was HKD 0.8177, equivalent to the adjusted funds flow for the year [1] Business Growth - Maintained leadership in the broadband market with fiber-to-home connections increasing by 4% to 1.086 million [1] - Customer base for upgraded fiber services expanded by 93% [1] - 5G customer base grew by 20% to 2.096 million [1] - Mobile communication service revenue increased by 5%, supported by higher roaming revenue [1] - Enterprise business achieved an 8% revenue growth in 2025 [1] - Secured new project orders exceeding HKD 5 billion, supporting future business growth [1]

Financial Data and Key Metrics Changes - The company reported over 4% growth in consolidated Adjusted EBITDA during Q4 2025, with Adjusted EBITDA margins expanding by 20 basis points [19] - Adjusted EPS grew by over 20% in Q4 to $0.52 and nearly 9% for the year to $2.12, exceeding the 2025 guidance [20] - Full year free cash flow was $16.6 billion, which grew by over $1 billion and was towards the higher end of the 2025 guidance [20][21] Business Line Data and Key Metrics Changes - The company achieved over 1.5 million postpaid phone net adds for the fifth consecutive year and over 1 million AT&T Fiber net adds for the eighth consecutive year [4] - The fiber convergence rate climbed 200 basis points year-over-year to 42%, indicating strong growth in customers who use both fiber and wireless services [9] - The company expects to reach over 40 million customer locations with fiber services by the end of 2026, up from 32 million at the end of 2025 [7] Market Data and Key Metrics Changes - The company continues to expand its fiber reach, planning to ramp up annual fiber construction from 3 million new locations in 2025 to 4 million by the end of 2026 [6] - The company expects total wireless service revenue growth in the 2%-3% range annually over the next three years, driven by growth in consumer and business customer relationships [25] - Advanced home internet service revenues are expected to grow organically by over 20% annually through 2028 [27] Company Strategy and Development Direction - The company aims to become the best advanced connectivity provider in America, focusing on 5G and fiber subscriber growth [4] - Plans to adopt new segment reporting beginning in Q1 2026, separating Advanced Connectivity results from Legacy operations to provide better transparency [17][24] - The company is committed to discontinuing a large majority of copper-based services by the end of 2029, managing the Legacy segment to achieve this outcome [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive federal policy for market-based investment in advanced networks, anticipating increased demand for dense fiber networks [18] - The company expects to return over $45 billion to shareholders through dividends and share repurchases over the next three years [16] - Management highlighted the importance of maintaining a disciplined approach to pricing and customer acquisition in a competitive market [78] Other Important Information - The company achieved over $1 billion in cost savings in 2025 and expects to achieve an additional $4 billion in annual cost savings by the end of 2028 [30] - The company plans to close its acquisition of fiber assets from Lumen during Q1 2026, which will add approximately $900 million of annualized fiber revenues [28] Q&A Session Questions and Answers Question: What is the expected convergence rate for fiber customers over time? - Management expects the convergence rate to continue improving, aiming for 50% and potentially higher in the long term [43][44] Question: What are the drivers behind the slowdown in consumer wireline revenue growth? - Management indicated that pricing adjustments and strategic decisions to bundle services have contributed to the slowdown, but they remain optimistic about future growth [48][49] Question: Are there plans for additional spectrum investments? - Management confirmed that they have reserved capacity for strategic options and will be judicious in future spectrum investments [57][58] Question: How is AT&T responding to competitive promotional changes? - Management stated that they are focused on maintaining financial performance through disciplined pricing and targeting under-penetrated segments [78][80]

Core Viewpoint - The European Union (EU) has increased unreasonable discriminatory measures against Chinese enterprises, exacerbating global trade frictions in a complex international trade environment [1][3]. Group 1: EU Measures Against Chinese Enterprises - The EU has intensified its anti-subsidy and anti-dumping investigations, surpassing the US in the amount of trade friction measures, which now exceed the latter's for the first time in 16 months [1]. - The trade friction index related to China reached 101 in January, indicating a high level of tension, with the EU having the highest index among 19 countries [1]. - The EU's carbon border adjustment mechanism (CBAM) has set significantly high default values for carbon emissions from Chinese products, disregarding China's achievements in green and low-carbon development [3]. Group 2: Chinese Response and Investment Outlook - The Chinese Ministry of Commerce criticized the EU's use of non-technical standards to restrict Chinese enterprises, claiming it distorts the market and threatens supply chain security [3][4]. - Chinese enterprises are optimistic about "going global," with a projected 7.1% increase in foreign direct investment by 2025, maintaining a top-three position globally for nine consecutive years [5]. - A survey indicates that nearly 80% of Chinese enterprises intend to expand or maintain their foreign investment, with 90% showing an increased willingness to use RMB for overseas investments [5][6]. Group 3: Support for Chinese Enterprises - The China Council for the Promotion of International Trade (CCPIT) is enhancing services for enterprises going abroad, including organizing business negotiations and improving the overseas service system [5][6]. - The CCPIT aims to create a comprehensive digital service ecosystem for enterprises, leveraging big data and artificial intelligence to support their international expansion [6].

Group 1 - The core viewpoint of the article highlights that the number of 5G users in China has exceeded 1.2 billion [2] Group 2 - The announcement was made during a press conference by the spokesperson of the Ministry of Industry and Information Technology, Xie Cun [2] - The press conference took place on January 21, organized by the State Council Information Office [2]