Core Insights - The ICT service export from South Korea reached $6.37 billion in the first half of the year, marking a year-on-year growth of 19.3% [1] - The import value during the same period was $4.8 billion, reflecting a growth of 12.3%, resulting in a trade surplus of $1.57 billion [1] - The primary driver of the overall surplus was the $1.57 billion surplus in intellectual property rights usage fees [1] - The ICT service export has maintained an average annual growth rate of 10.1% over the past five years [1] - Factors contributing to the continued growth include the popularity of AI and cloud services, increased global recognition of K-content, and rising demand for platform-based software [1]

Core Insights - China Software International (00354) is a leading IT service provider in China and a deep partner of Huawei, with over 40% of its revenue contributed by Huawei [1] Group 1: Business Performance - The cloud intelligence business shows significant growth, with full-stack AI products highlighting growth potential [1] - The cornerstone business, ICT services, is the main source of revenue and profit, with a recovery in revenue expected in the second half of 2024 [1] - The total number of employees is rebounding, and the number of major clients has reached the second highest level since 2020, indicating effective client expansion [1] Group 2: Strategic Partnerships - The company is a top-level partner of Huawei Cloud and is expected to benefit from the development of the HarmonyOS ecosystem [1] - The partnership with Huawei began in 2009, and the company has been deeply involved in Huawei's various strategic layouts, making it one of Huawei's core IT service outsourcing providers in China [1] - The company is closely tied to the construction of the Harmony IoT ecosystem, with expectations for further collaboration in 2024 [1]

(1)基石业务：ICT服务是公司的基石业务，贡献主要收入和利润，2024年下半年基石业务营收修复，公 司员工总人数回暖，大客户数达到2020年来第二高，大客户拓展效果显著。(2)云智能业务：疫情引发 的市场波动已回归常态，随着云计算与原生人工智能、大模型以及算力资源的深度整合，下游需求将快 速增长。公司在行业场景化领域占据优势，深度合作华为云能力，拓展全栈AI产品落地可能性，2024 年公司全栈AI产品收入达9.57亿元，增长曲线初步显现，未来将加速云智能业务增长。 华为最高级别合作伙伴，有望受益于鸿蒙生态发展 (1)公司是华为云"同舟共济"合作伙伴：公司与华为于2009年开始合作，深入参与华为各领域布局，是 华为在国内最核心的IT服务外包商之一。(2)深度绑定鸿蒙物联生态建设：2024年华为终端业务业绩修 复，原生鸿蒙发布、鸿蒙PC发布后"1+8+N"物联生态实现闭环，软件生态重构需求快速增长。原生鸿蒙 软件重构、智能物联网设备持续发展，推动鸿蒙生态需求激增。公司是开源鸿蒙生态的核心服务商，推 出了适合开源鸿蒙开发者的工具，联合深圳市天使母基金等机构助力创业鸿蒙开发者。公司占据鸿蒙生 态先发优势，有望持续受 ...

Core Insights - Artificial intelligence is reshaping the entire digital trade value chain and significantly impacting the global digital services trade landscape [1][15] - The global digital services trade is projected to reach $4.64 trillion in 2024, reflecting an 8.3% growth [2] - Digital services trade now accounts for 53.4% of global services trade, although it has slightly decreased from 53.8% in 2023 due to a strong recovery in tourism services [2][3] Digital Services Trade Growth - The global digital services trade has shown resilience and potential for long-term growth, with a 64.7% increase from 2019 to 2024, outpacing goods trade growth of 28.5% [1][2] - The share of digital services in global services trade has increased by 8.8 percentage points since 2019 [1] Country Rankings and Export Dynamics - The top ten countries in digital services trade remained unchanged in 2024, with the United States leading, followed by Ireland, the United Kingdom, and others [6] - The U.S. accounts for 15.3% of global digital services exports, while ASEAN countries collectively represent only 6% [7] E-commerce and Sector Performance - Global B2C cross-border e-commerce is expected to reach $1.167 trillion in 2024, growing by 22.2% [8] - ICT services, financial services, and intellectual property fees are the high-growth segments within digital services, collectively accounting for 52.8% of the sector [8] China's Digital Services Trade - China's digital services trade is projected to reach $385.76 billion in 2024, growing by 5.2% [9][13] - Digital services account for 36.7% of China's service trade, indicating significant room for growth compared to the global average of 53.4% [9][13] Sector Contributions and Trends - In China, ICT services dominate the digital services trade, contributing 59.7% to growth, with computer services showing strong international competitiveness [13] - The personal entertainment sector in China has seen remarkable growth, with exports increasing by 37.5% [14] Impact of Artificial Intelligence - The report highlights the transformative role of artificial intelligence in enhancing global trade across various dimensions [15]

Core Insights - The global digital services trade is experiencing significant growth, with a projected scale of $4.64 trillion in 2024, marking an 8.3% increase from the previous year [2] - Digital services now account for 53.4% of global service trade, although this is a slight decrease from 53.8% in 2023 due to a strong recovery in tourism services [2][7] - The United States leads in digital services exports, holding a 15.3% share of the global market, followed by the UK and Ireland [7] Digital Services Trade Growth - The digital services trade has expanded by 64.7% from 2019 to 2024, significantly outpacing the growth of goods trade (28.5%) and overall service trade (37.5%) during the same period [1] - The resilience and potential of digital services trade are highlighted, as it continues to grow despite fluctuations in traditional goods and services trade due to various global challenges [2] China's Digital Services Trade - China's digital services trade reached $385.76 billion in 2024, growing by 5.2%, with exports increasing by 6.1% and imports by 3.5% [9][13] - Digital services account for 36.7% of China's service trade, indicating room for further growth compared to the global average of 53.4% [9][13] - China ranks 7th globally in digital services trade, maintaining a net export surplus of $55.37 billion [13] Sector Performance - The ICT services sector is the largest contributor to China's digital services trade, accounting for $133.76 billion, with a growth contribution rate of 59.7% [13] - Personal entertainment services have shown remarkable growth, with export growth reaching 37.5% and imports at 27.9% [14] - Cross-border e-commerce is rapidly expanding, with a projected scale of $1.167 trillion in 2024, growing by 22.2% [8][14] Impact of Artificial Intelligence - The integration of artificial intelligence is reshaping digital trade across various dimensions, enhancing both supply and demand sides [14] - The potential for AI to significantly boost service trade growth rates is acknowledged, with optimistic scenarios suggesting increases of up to 18% by 2040 [14]

Group 1: Market Overview - On September 18, the Hong Kong stock market experienced fluctuations, with the Hang Seng Index falling by 1.35%, the Hang Seng China Enterprises Index down by 1.46%, and the Hang Seng Tech Index decreasing by 0.99% [1] - The robotics sector led the market, with Shoucheng Holdings rising over 13% at one point and closing up by 5.91%, marking a year-to-date increase of over 130% [1] Group 2: Kaisa Capital - Kaisa Capital's stock price surged over 380% during intraday trading on September 18, closing at 0.51 HKD per share, reflecting a gain of 174.19% with a trading volume of 11.47 million HKD and a total market capitalization of 541 million HKD [2] - The company announced a strategic transformation on September 17, leveraging shareholder resources and technological expertise in the Web3.0 space to explore digital financial innovations within a compliant regulatory framework in Hong Kong [3] - Kaisa Capital has partnered with a licensed virtual asset trading platform to advance the tokenization of real-world assets (RWA) [3] - Historically, Kaisa Capital's stock has been volatile, reaching a peak of 3.68 HKD per share in July 2015 and a low of 0.099 HKD per share in April this year [5] - The company reported a revenue of 225 million HKD for 2024, a year-on-year decline of 5%, and a net loss attributable to shareholders of 115 million HKD, reversing from profit [5] Group 3: Hong Kong Broadband - Hong Kong Broadband's stock price rose over 77% during intraday trading on September 18, closing up by 68.55% at 8.63 HKD per share, with a trading volume exceeding 3.2 billion HKD and a total market capitalization of over 12.7 billion HKD [6] - China Mobile Hong Kong has become the largest shareholder of Hong Kong Broadband, holding 78.08% of the shares following a successful takeover bid [7] - The acquisition is expected to integrate China Mobile's 5G network resources and cloud computing infrastructure with Hong Kong Broadband's telecommunications services, enhancing its capabilities for enterprise digital transformation [7] - Hong Kong Broadband provides a range of ICT services to residential and enterprise customers, including high-speed fiber broadband, communication services, and digital transformation solutions [9]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached over NT$56 billion, marking a 4.8% year-over-year increase, driven mainly by the expansion of the ICT business and higher sales revenue [22][30] - Operating income and net income rose by 5.2% and 3.5% respectively compared to the same period last year, supported by growth in the Internet data center business and steady performance from subsidiaries [22][30] - Earnings per share increased from NT$1.27 to NT$1.31, reflecting consistent profitability and effective cost control, with EPS reaching the highest levels in nine years for the second quarter [22][30] - EBITDA increased by 3.5% year over year, reaching NT$22.58 billion, with an EBITDA margin of 39.8%, remaining broadly stable compared to last year [23][30] Business Line Data and Key Metrics Changes - Mobile service revenue grew approximately 2% year over year, with a mobile ARPU increase of 38% as more users upgraded to 5G [9] - Fixed broadband revenue increased by 1.8% year over year, driven by strategic bundle plans and symmetrical uplink/downlink speeds for services above 300 Mbps [10] - Enterprise ICT revenue increased by 27% year over year, with core service pillars like IDC, AIoT, and cloud showing robust growth of 40%, 75%, and 140% respectively [14] Market Data and Key Metrics Changes - Mobile market share rose to 40.7% as of June, achieving a new high, with the highest subscriber share among peers at 39.1% [8] - Southeast Asia market delivered double-digit revenue growth driven by demand for ICT services from high-tech companies [18] Company Strategy and Development Direction - The company continues to execute its "sea, land, and sky" strategy to enhance network resilience and seize future opportunities, including investments in undersea cables and satellite services [6][7] - The focus remains on innovation and operational excellence, with a commitment to governance and sustainability recognized by receiving the highest MSCI ESG rating of AAA [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum of core businesses and highlighted the importance of strategic investments in ICT and satellite services to support future growth [5][6] - The company remains cautious about global market sentiment amid ongoing uncertainties but continues to invest strategically for long-term growth [18] Other Important Information - The company received the 2025 Taiwan Data Center Service Competitive Strategy Leadership Award from Frost Sullivan, recognizing its AI-ready data center capabilities [7] - Total assets increased by 1.9% as of June 30, 2025, primarily driven by an increase in current monetary assets [25] Q&A Session Summary - No specific questions were recorded during the Q&A session, and the call concluded without further inquiries from participants [33][34]

Financial Data and Key Metrics Changes - Net service revenue increased slightly year on year, with gross revenue reaching $27.9 billion, up 2% from last year [4] - EBITDA grew by 2% to $7.9 billion, driven by strength in fiber and ICT segments, along with prudent cost management [4][11] - Telco core income was recorded at $8.8 billion, down 6% year on year due to increased depreciation linked to strategic investments [4][12] - Core income remained steady year on year, supported by Maya's positive contribution, which turned profitable this quarter [12][13] Business Line Data and Key Metrics Changes - Home segment revenue rose by 4% year on year to $15.2 billion, with fiber now accounting for 97% of home revenues, up from 92% in 2024 [5][8] - Enterprise segment total revenue remained steady at $11.9 billion, with corporate data and ICT revenues slightly up by 1% [5][9] - ICT revenue grew by 16% year on year, now accounting for over 22% of enterprise revenues, up from 19% a year ago [6][9] - Mobile revenues decreased slightly due to lower packet Wi-Fi usage, but 5G adoption and data traffic are on the rise, indicating potential for future growth [6][11] Market Data and Key Metrics Changes - Mobile data, fiber, corporate data, and ICT now account for 89% of total revenues, up from 88% in 2024 [7] - 5G data traffic surged by 81% year on year, with 5G device adoption growing by 60% quarter on quarter [11] - The churn rate remains below 2%, one of the lowest in the industry, reflecting effective customer retention strategies [8][59] Company Strategy and Development Direction - The company aims to pursue steady revenue growth, disciplined expense management, asset monetization, and prudent capital allocation [5] - PLDT is focusing on expanding its fiber footprint and enhancing its digital infrastructure, including the launch of the Asia Direct Cable to improve international connectivity [22][24] - Maya, the fintech driver, is positioned for sustainable growth with its all-in-one ecosystem combining payment, banking, and lending services [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position despite near-term challenges, supported by strong operational fundamentals and strategic investments [33] - The company anticipates continued growth in the home segment and is optimistic about the enterprise segment recovering as new capacities come online [36][40] - Management highlighted the importance of maintaining a strong focus on customer experience and product innovation to drive future growth [72] Other Important Information - PLDT's net debt stood at $270.7 billion, with a net debt to EBITDA ratio of 2.48 times, slightly improved from the previous year [15] - The company retains investment-grade credit ratings, underscoring investor confidence in its financial health [17] - PLDT is committed to generating positive free cash flow by 2026 and reducing leverage to around a 2.0x net debt to EBITDA ratio over the medium term [17] Q&A Session Summary Question: What is the outlook for the enterprise segment regarding Pogo-related revenue pressures? - Management indicated that the impact from Pogo cancellations is expected to continue until at least Q3, but efforts are being made to mitigate revenue loss [38] Question: Can you provide updates on VITRO's capacity take-up and profitability contributions? - A significant hyperscale customer has already signed for 4 megawatts of capacity, with ongoing discussions for further capacity fill [40] Question: What is the profit momentum expected for Maya for the rest of the year? - Management expects steady and gradual margin improvement rather than a sharp increase, as operating leverage continues to strengthen [42] Question: How is the mobile business expected to perform in the second quarter? - Management noted that while the market has softened, they continue to see growth in traffic, which is expected to help monetize demand [44] Question: What is the current water usage rate for VITRO Santa Rosa? - Water usage is currently at normal levels, with expectations for an increase as AI workloads ramp up [47] Question: What is the target loan to deposit ratio for Maya? - There is no specific target, but the company aims to maintain a conservative loan to deposit ratio compared to traditional banks [50] Question: How does the company plan to improve working capital efficiency? - Strategies include asset monetization, consolidation of central offices, and seeking strategic partners in data centers [82]