(Hong Kong - 27 October 2026) HKBN Ltd. (“HKBN” or the “Company”; SEHK stock code: 1310) today announced its operational and financial results for the twelve months ended 31 August 2026. The Group demonstrated exceptional business resilience and strategic execution. Despite continued geopolitical uncertainties and a challenging macroeconomic environment, the Group delivered steady growth, underscoring the strength of its diversified business portfolio and robust operational capabilities.

ANNOUNCEMENT HIGHLIGHTS

• Total revenue showed a robust performance, increasing by 6% to $11,821 million. Notably, after excluding handsets and other products sales, core revenue grew by 8%.
• EBITDA recorded at $2,487 million, representing an increase of 1%. This includes annual salary review and discretionary bonus aimed at enhancing employee service quality. Excluding those factors, the growth would be 4%.
• Adjusted free cash flow (“AFF”) grew by 1% to $681 million, attributable to improved EBITDA and reduced bank loan interest payments, partially offset by an increase in capital expenditure and working capital outflows.
• Net profit increased by 53% to $317 million. During the period, the financing structure was optimised. Although the early retirement of banking facilities incurred a one-off expense, interest expenses were significantly reduced, while the core business remained resilient with strong profitability.
• In view of the change in the financial year end date in the current year, under which two interim reports and an annual report will be published in the current financial year, the Board has resolved not to declare a second interim dividend for the twelve months ended 31 August 2026. The final dividend will be determined in accordance with the dividend policy after the year end closing (2025: final dividend of 18.9 cents per share).

Ms Shi Xiaoping, HKBN Chairman of the Board and Executive Director, said, “This year marks the opening year of the nation’s 15^th Five-Year Plan, and the HKSAR Government has also published its first Five-Year Plan. We must seize the growth opportunities. Guided by our direction of 'Rooted in Hong Kong, Connected to the Greater Bay Area, Reaching the World', we will advance our ‘Strengthening Network Foundation, Driving Full-Stack Innovation’ strategy, strengthening our network capabilities and customer experience, while transforming our network and technology into a digital bridge connecting Hong Kong, Chinese Mainland and overseas markets. By driving deeper integration of AI into our business, we aim to serve households across the community, empower various industries, and support Hong Kong's integration into and service for the overall national development.”

Mr. Li Xin, HKBN Executive Director and Group Chief Executive Officer, said, “This year, with a clear strategy, a strong business foundation, and close collaboration with China Mobile, HKBN has captured market opportunities and delivered sustainable growth. We will continue to invest decisively in high-speed networks and 'HKBN AI+' development – raising service quality and operational efficiency across the business, contributing to Hong Kong's digital intelligence transformation, and aligning with the nation's development strategy.”

Enterprise Solutions: AI Empowerment and High-Speed Networks Drive Revenue Growth

Enterprise Solutions business continued to serve as the Group's core growth engine, with revenue growing by 11% to $8,167 million, reflecting strong market demand for HKBN's solutions. As AI reshapes enterprise operating models, HKBN's expertise in AI is creating significant value, further consolidating its market leadership and unlocking new growth opportunities.

The number of enterprise customers rose to 101,000, among which the number of enterprise customers using GigaFast¹ broadband services exceeded 26,000, more than doubling year-on-year. High-speed enterprise broadband helps support high-performance AI computing, underpinning enterprise customers' business expansion.

During the period, the Group launched "HKBN AI+" service, marking HKBN as the first telecommunications service provider in Hong Kong to offer a complete enterprise-grade AI service platform. The platform combines leading domestic computing power, advanced large language models, professional AI agents, and high-performance network infrastructure, enabling enterprises to deploy AI securely, easily, and more extensively.

Residential Solutions: GigaFast and "Infinite-Play" Drive Experience Upgrades

Residential Solutions business remained stable, with revenue remaining steady at $2,301 million. The total number of residential broadband subscriptions reached 928,000, and network coverage further expanded by 2% to 2.69 million households across Hong Kong, reinforcing HKBN's leadership in Hong Kong's residential broadband market.

The number of residential GigaFast broadband customers increased by 40% year-on-year to nearly 133,000. HKBN continues to comprehensively advance the "Fibre In, Copper Out" network upgrade initiative, focusing on helping customers upgrade from copper networks to 2.5Gbps fibre networks. This not only significantly enhances customer satisfaction but also effectively reduces network maintenance costs.

HKBN continues to deepen its "Infinite-Play" strategy, combining technological innovation with lifestyle and entertainment to create smarter, more convenient living experiences for residential customers. The "Infinite-Play" offering continues to expand into new areas such as gerontechnology, insurance, healthcare and smart living, further integrating into customers' daily lives. This not only enhances user engagement and loyalty, but also drove a 0.5% increase in average revenue per household to $218.

For details of HKBN's FY2026 second interim results, please refer to the announcement: Click here

Photo caption: HKBN delivered strong results during the period, driven by a solid operating foundation and strategic synergies.

¹ GigaFast refers to broadband service plans with bandwidth speeds of 2Gbps or above.