2024 Interim Report

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HKT Trust and HKT Limited interim report 2024

MESSAGE FROM THE CHAIRMAN

Hong Kong's economy recorded moderate growth in the first half of 2024, amid global inflationary pressures and geopolitical tensions. Against this backdrop, HKT supported the city as an international hub for innovation and technology by providing reliable services to promote digital transformation.

As a leading provider of mobile communications solutions, we are constantly advancing connectivity with cutting-edge technology, enabling customers to maintain contact even in remote areas. Our wide array of user-friendly roaming options served an increased number of travellers, spurring a total roaming revenue growth of 55% year-on-year and the full recovery of outbound roaming revenue to pre-COVID levels. A long-time champion of smart city development, our 5G subscribers now represent 46% of our post-paid base.

Readying ourselves for tomorrow's digital needs, we became the first telecom service provider in Hong Kong to adopt 50G PON technology. We complement the high speed and low latency with the city's widest selection of Wi-Fi 7 routers, optimising premium customers' at- home enjoyment including 8K video streaming, artificial intelligence ("AI") and virtual reality. Our use of XGSPON technology continues to set us apart by offering equally fast uploads and downloads at symmetrical speeds of 2.5G, 5G and 10G. Catering for varied needs, we evolve alongside customers towards a connected future.

While focusing on the latest technology, we have relentlessly pursued quality user experiences both within and outside the home. We upgraded the Now TV app with an over-the-top ("OTT") streaming option, allowing simultaneous viewing on different devices for the entire family to enjoy our diverse content anytime, anywhere. Our exclusive UEFA European Championship broadcasts this summer accelerated the rise in both subscription numbers and advertising revenue and helped food and beverage ("F&B") outlets capture business from the resulting nightlife boost. Addressing rising expectations for smart home integration, we deliver premium services across mobile, fibre, entertainment and Smart Living through 1O1O HOME.

Our Commercial business has been driving digital transformation in various sectors, both public and private. We have improved healthcare efficiency through advanced 5G systems and ICT infrastructure, enhanced safety

and reliability in public utilities worksites and upgraded communication systems in the hospitality industry. In the Greater Bay Area, we have modernised equestrian facilities and gaming venues. We assist Chinese enterprises in expanding into ASEAN countries, as well as Hong Kong and multinational companies venturing into the mainland. We also supported a pioneering transcontinental telesurgery with low-latency connectivity.

Our launch of the world's first cross-border telecom rewards programme in collaboration with six Asia-Pacific operators further strengthens regional connectivity. Leveraging our ecosystem, we brought together ViuTV under PCCW and our partners to stimulate the local economy through the "Reward Yourself, Recharge the City" campaign in support of the retail and F&B industries.

Our unwavering commitment to embracing digital evolution drives us to explore new opportunities while standing firmly alongside our stakeholders. We will continue to invest in technology and harness state-of-the-art applications to foster business growth and create shared value for society.

Richard Li

Chairman

25 July 2024

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HKT has been building upon its solid foundation to transform our business from a telecom service provider to a technology solutions enabler. Leveraging our unique integrated fibre and mobile network, we have extended our service from connectivity to a broad array of innovative solutions for our customers, whether they be individuals, households, or enterprises. Our strategic initiatives have enabled us to navigate the complex economic landscape whilst our continuous progression and latest technology applications provide the fuel for our future growth.

Premium consumer experience inside and outside the home

Our consumer business has seen remarkable growth, driven by increasing demand for high-speed connectivity. Household broadband usage requirement is now over 2Gbps, with a sustained rise that reflects the proliferation of bandwidth-intensive applications. In response, we have launched fibre plans ranging from symmetric 2.5G, 5G to 10G which, coupled with the latest Wi-Fi 7 routers, provide an unparalleled broadband experience that can be enjoyed via the latest high-capacity smart devices. Our fibre-to-the-home ("FTTH") connections now total 1.028 million, representing 70% of our consumer broadband base at the end of June 2024. Paving the way to a connected future, we were the first to market in March 2024 with a 50G PON service in Hong Kong. It allows us to pre-empt and address potential network issues to enhance service quality, in addition to future-proofing our network for next-generation applications such as 8K video streaming, virtual reality and artificial intelligence ("AI") that are available to a fast- growing number of consumers. To elevate the smart living experience, we launched 1O1O HOME in January 2024. This premium home solution integrates HKT's services, the latest connected devices, dedicated customer support as well as exciting lifestyle offers to provide a cohesive one-stop customer journey and foster loyalty.

Outside the home, HKT customers enjoy seamless connectivity with our 5G mobile service, which complements our robust fibre network. We have grown our 5G mobile customer base to 1.571 million, accounting for 46% of our post-paid base at the end of June 2024. These customers are able to efficiently and securely work, shop, bank as well as be entertained on our upgraded Now TV video streaming service while on the go. As travel activity continues to rebound, HKT customers can also enjoy a high-quality roaming experience with our partners, including members of the Bridge Alliance, through a wide selection of flexible plans. Our consumer outbound

roaming revenue now exceeds pre-COVID levels, driving total roaming revenue to grow 55% year-on-year. In anticipation of ever-moredata-heavy applications, our mobile network is evolving towards 5G Advanced with its ultra-high speed, stability and ultra-low latency showcased during recent mega events in Hong Kong. This enables us to deploy features such as network slicing to extend service capabilities to our enterprise customers.

As we plan to expand our physical network into the city's newly developed areas such as the Northern Metropolis and potentially into the Greater Bay Area ("GBA"), we announced a partnership with China Merchants Capital Holdings Co., Ltd.* (招商局資本控股有限責任公司) ("CMC") in June 2024. In addition to helping to share future capital expenditure, the partnership will enable HKT to strengthen resources in enhancing and broadening

its service offerings to consumers as well as providing innovative, advanced technology solutions to its enterprise customers.

Trusted partner to enterprises in their digital transformation

We are working with enterprises, both public and private, in Hong Kong and mainland China to deploy technology solutions that improve the online and offline experience for their customers, increase business process efficiencies and boost data analysis to gain better insights. In the healthcare sector, we are installing 5G infrastructure that provides the backbone for advanced smart healthcare applications which enhance patient experience and improve resource management. In the hospitality sector, we are enhancing the guest experience by upgrading hotels and clubhouses to Wi-Fi 7 and unified communications systems. We are improving enterprise operational performance by assisting with generative AI ("genAI") adoption. These successful wins as well as numerous others led to a healthy secured order book with a total contract value exceeding

HK$2.5 billion for the first half of 2024, an increase of 27% year-on-year, demonstrating the resilience of our business model in the face of lingering macroeconomic headwinds.

*  For identification purpose only

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HKT Trust and HKT Limited interim report 2024

HKT Trust and HKT Limited interim report 2024

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BOARD OF DIRECTORS

EXECUTIVE DIRECTORS

LI Tzar Kai, Richard

Executive Chairman

Mr Li, aged 57, was appointed the Executive Chairman and an Executive Director of HKT Limited (HKT) and HKT Management Limited, the trustee-manager of the HKT Trust, in November 2011.

He is the Chairman of HKT's Executive Committee and a member of the Nomination Committee of the HKT Board. Mr Li has also been an Executive Director and the Chairman of PCCW Limited (PCCW) since August 1999, the Chairman of PCCW's Executive Committee and a member of the Nomination Committee

of the board of directors of PCCW. He is also the Chairman and Chief Executive of the Pacific Century Group, a Director of FWD Group Holdings Limited, an Executive Director of Pacific Century Premium Developments Limited (PCPD), the Chairman of PCPD's Executive Committee, a member of PCPD's Remuneration Committee and Nomination Committee, the Chairman and an Executive Director of Singapore-based Pacific Century Regional Developments Limited (PCRD), and the Chairman of PCRD's Executive Committee.

Mr Li is a member of the Center for Strategic and International Studies' International Councillors' Group in Washington, D.C. He was awarded the Lifetime Achievement Award by the Cable & Satellite Broadcasting Association of Asia in November 2011.

HUI Hon Hing, Susanna

Group Managing Director

Ms Hui, aged 59, has been the Group Managing Director of HKT Limited (HKT) and HKT Management Limited (Trustee-Manager), the trustee-manager of the HKT Trust, since September 2018. She has also been an Executive Director of HKT and the Trustee-Manager since November 2011. She is a member of HKT's Executive Committee and holds directorships in various Group companies. She was the Group Chief Financial Officer of HKT from November 2011 to August 2018 primarily responsible for overseeing the financial matters of the Group. Ms Hui is also the Acting Group Managing Director, Group Chief Financial Officer and Executive Director of PCCW Limited (PCCW), and a member of PCCW's

Executive Committee.

Ms Hui joined Cable & Wireless HKT Limited (which was subsequently acquired by PCCW) in September 1999. Since then, she has served the PCCW Group in various capacities in the past 25 years, including as Director of Group Finance of the PCCW Group from September 2006 to April 2007, and the Director of Finance of the PCCW Group with responsibility for the telecommunications services sector and regulatory accounting. Ms Hui was also an Executive Director of Pacific Century Premium Developments Limited (PCPD) from May 2018 to December 2021 and the Chief Financial Officer of PCPD from July 2009 to November 2011.

Prior to joining Cable & Wireless HKT Limited, Ms Hui was the chief financial officer of

a listed company engaged in hotel and property investment and management.

Ms Hui graduated with a bachelor's degree in social sciences from the University of Hong Kong with first class honours. She is a qualified accountant and a member of both the Hong Kong Institute of Certified Public Accountants and the American Institute of Certified Public Accountants.

Ms Hui is a Board member of

Hong Kong Science and Technology Parks Corporation. She is also a fellow and council member of The Hong Kong Management Association and a vice-chairman of the Employers' Federation of Hong Kong. In addition, Ms Hui is a member of the Hong Kong Trade Development Council Belt and Road & Greater Bay Area Committee and its Greater Bay Area Task Force

on Innovation and Technology, a non-official member of the Digital Economy Development Committee of the Hong Kong Special Administrative Region (HKSAR) Government, and a Director

of Mox Bank Limited. In 2024, Ms Hui was awarded the Medal of Honour by the HKSAR Government in recognition of her dedicated and valuable community service, particularly in youth development and supporting underprivileged students.

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HKT Trust and HKT Limited interim report 2024

NON-EXECUTIVE DIRECTORS

Peter Anthony ALLEN

Non-Executive Director

Mr Allen, aged 69, was appointed

a Non-Executive Director of HKT Limited (HKT) and HKT Management Limited (Trustee-Manager), the trustee-manager of the HKT Trust, in November 2011. He is a member of HKT's Audit Committee and the Trustee-Manager's Audit Committee. Mr Allen also holds directorships in certain Group companies. He is an Executive Director and the Group Managing Director of Pacific Century Regional Developments Limited, an Executive Director and the Chief Financial Officer of the Pacific Century Group and Senior Advisor to

PCCW Limited (PCCW). He is also a Director of certain other companies controlled by Mr Li Tzar Kai, Richard, the Executive Chairman of HKT and the Trustee-Manager. Mr Allen was an Executive Director of PCCW from August 1999 to November 2011.

Prior to joining the Pacific Century Group, Mr Allen joined KPMG in 1976 before taking up an appointment at Occidental International Oil Incorporated in 1980. In 1983, he joined Schlumberger Limited and worked in various countries holding key management positions. In 1989, he moved to Singapore as Regional Financial Director of the Vestey Group.

Mr Allen joined Boustead Singapore Limited as the Group Operations Controller in 1992 before taking up an appointment with Morgan Grenfell Investment Management (Asia) Limited as a Director and Chief Operating Officer in 1995. He joined the Pacific Century Group in 1997.

Mr Allen was educated in England and graduated from the University of Sussex with a degree in economics. He is a Fellow of the Institute of Chartered Accountants in England and Wales, a Fellow Member of CPA Australia, a Fellow of the Hong Kong Institute of Directors and a Fellow of the Institute of Singapore Chartered Accountants.

CHUNG Cho Yee, Mico

Non-Executive Director

Mr Chung, aged 63, was appointed a Non-Executive Director of HKT Limited and HKT Management Limited, the trustee-manager of the HKT Trust,

in November 2011. Mr Chung was

a Non-Executive Director of PCCW Limited (PCCW) from May 2010 to November 2011. He was an Executive Director of

PCCW from November 1996 who was responsible for merger and acquisition activities and was re-designated to a Non-Executive Director of PCCW in May 2010. He joined the Pacific Century Group in March 1999.

Mr Chung graduated from University College London in the United Kingdom with a law degree in 1983.

Mr Chung is currently the Chairman and an Executive Director of CSI Properties Limited which he joined in 2004. He was an Independent Non-Executive Director of HKC (Holdings) Limited.

TANG Yongbo Non-ExecutiveDirector

Mr Tang, aged 50, was appointed a Non-Executive Director of HKT Limited (HKT) and HKT Management Limited, the trustee-manager of the HKT Trust, in August 2023. He is a member of HKT's Remuneration Committee, Nomination Committee and Executive Committee. Mr Tang became a Non-Executive Director and the Deputy Chairman of the board of directors of PCCW Limited (PCCW)

in August 2023. He is a member of PCCW's Executive Committee.

Mr Tang is a vice general manager of China United Network Communications Group Company Limited, a senior vice president of China United Network Communications Limited, a senior vice president of China Unicom (Hong Kong) Limited, and a director and a senior vice president of China United Network Communications Corporation Limited. In addition, he serves as a non-executive director of China Tower Corporation Limited and China Communications Services Corporation Limited.

Mr Tang was a deputy general manager and a general manager of Hunan Branch of China Unicom, and a general manager of marketing department of China United Network Communications Group Company Limited. He was a deputy to the 13th National People's Congress.

Mr Tang received a master's degree in Business Administration from Central South University. He has extensive experience in management and the telecommunications industry.

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BOARD OF DIRECTORS (CONTINUED)

INDEPENDENT NON-EXECUTIVE DIRECTORS

CHANG Hsin Kang

Independent Non-Executive Director Mr Chang, aged 84, was appointed an Independent Non-ExecutiveDirector of HKT Limited (HKT) and HKT Management Limited (Trustee-Manager),the trustee-managerof the HKT Trust, in November 2011. He is the Chairman of HKT's Regulatory Compliance Committee, a member of HKT's Audit Committee, Remuneration Committee and Nomination Committee, and a member of the Trustee-Manager'sAudit Committee.

Mr Chang was an Independent Non-Executive Director of PCCW Limited from October 2000 to November 2011.

Mr Chang became an Honorary Professor of Peking University in 2006 and an Honorary Professor of Tsinghua University in September 2007. He was the President and University Professor of City University of Hong Kong from 1996 to 2007.

Prior to that, he was the Dean of the School of Engineering at the University of Pittsburgh in the United States from 1994 to 1996, Founding Dean of the School of Engineering at Hong Kong University of Science and Technology from 1990 to 1994 and the Chairperson of the Department of Biomedical Engineering at the University of Southern California in the United States from 1985 to 1990.

Mr Chang is a Foreign Member of the Royal Academy of Engineering of the United Kingdom, a Member of International Eurasian Academy of Sciences; and Chevalier dans l'Ordre National de la Légion d'Honneur as well as Commandeur dans l'Ordre des Palmes Académiques of France. He was appointed Justice of the Peace in

July 1999 and awarded the Gold Bauhinia Star by the Hong Kong Government in July 2002.

Mr Chang obtained his bachelor's degree in civil engineering from the National Taiwan University, a master's degree

in structural engineering from Stanford University in the United States and a doctorate in biomedical engineering from Northwestern University in the United States.

Mr Chang was an Independent Non-Executive Director of Hang Lung Properties Limited, Hon Kwok Land Investment Company, Limited, Brightoil Petroleum (Holdings) Limited and Nanyang Commercial Bank, Limited.

Sunil VARMA

Independent Non-Executive Director Mr Varma, aged 80, was appointed an Independent Non-ExecutiveDirector of HKT Limited (HKT) and HKT Management Limited (Trustee-Manager),the trustee-managerof the HKT Trust, in November 2011. He is also the Chairman of both HKT's Audit Committee and the Trustee-Manager'sAudit Committee and a member of HKT's Nomination Committee, Remuneration Committee and Regulatory Compliance Committee.

Mr Varma is a certified chartered accountant as well as a cost and management accountant. He has extensive working experience of over 40 years including with Price Waterhouse Management Consultants and the IBM Consulting Group, specialising in management and business-problem consulting. He was the partner responsible for establishing and developing the Price Waterhouse consulting practice in Indonesia and was the Head of the Price Waterhouse consulting practice in Hong Kong until 1994. Mr Varma was the Vice President and Principal responsible for the IBM

Consulting Group in India between 1996 and 1998. He was the Interim Chief Financial Officer and Managing Director of Asia Online, Ltd. from 1999 to 2000 and was the Interim Chief Financial Officer of HCL - Perot Systems in India in 2003.

Mr Varma had previously worked in a number of countries in Africa and the Asia Pacific region including Australia, India, Indonesia, Hong Kong, Thailand and the PRC. He advised large multinationals as well as domestic companies in the areas of corporate governance, financial management, organisational strengthening, efficiency improvement, process re-engineering and business systems. He is experienced in a cross-section of industries including financial services, information technology, energy, fertilisers and steel. He had previously conducted several large assignments for public sector organisations, funded by World Bank, Asian Development Bank and other multi-lateral funding agencies. Mr Varma was a Lead Independent Director, the Chairman of Audit Committee and a member of various committees of

Dr. Lal PathLabs Limited in India.

Mr Varma obtained his Bachelor of Arts degree in mathematics and economics from Panjab University in July 1962. He has been an Associate member of the Institute of Chartered Accountants of India since August 1966 and a Fellow since June 1972, and an associate member

of the Institute of Cost and Management Accountants of India since September 1975.

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HKT Trust and HKT Limited interim report 2024

Aman MEHTA

Independent Non-Executive Director Mr Mehta, aged 77, was appointed an Independent Non-ExecutiveDirector of HKT Limited (HKT) and HKT Management Limited, the trustee-managerof the HKT Trust, in May 2014. He is the Chairman of HKT's Nomination Committee. Mr Mehta has been an Independent Non-ExecutiveDirector of PCCW Limited (PCCW) since February 2004. He is also the Chairman of the Audit Committee, the Nomination Committee and the Remuneration Committee of the board of directors of PCCW.

Mr Mehta joined the board of directors of PCCW following a distinguished career in the international banking community. Mr Mehta held the position of

Chief Executive Officer of The Hongkong and Shanghai Banking Corporation Limited (HSBC) until December 2003, when he retired.

Born in India in 1946, Mr Mehta joined HSBC group in Bombay in 1967.

After a number of assignments throughout HSBC group, he was appointed Manager - Corporate Planning at HSBC's headquarters in Hong Kong in 1985. After a three-year posting to Riyadh in Saudi Arabia, he was appointed Group General Manager in 1991, and General Manager - International the following year, with responsibility for overseas subsidiaries. He subsequently held senior positions in the United States, overseeing HSBC group companies in the Americas and later becoming responsible for HSBC's operations in the Middle East.

In 1998, Mr Mehta was reappointed General Manager - International,

after which he became Executive Director International. In 1999, he was appointed Chief Executive Officer, a position he held until retirement.

Following his retirement in December 2003, Mr Mehta took up residence in New Delhi. He is an Independent Non-Executive Director of Max Financial Services Limited in New Delhi, India. He was an Independent Non-Executive Director of Emaar MGF Land Limited, Jet Airways (India) Limited, Cairn India Limited, Vedanta Resources plc, Tata Consultancy Services Limited, Vedanta Limited, Godrej Consumer Products Limited, Tata Steel Limited and Wockhardt Limited; and an Independent Director on

the Supervisory Board of ING Groep N.V., a Netherlands company.

Mr Mehta is also a member of the Governing Board of Indian School of Business, Hyderabad.

Frances Waikwun WONG Independent Non-ExecutiveDirector Ms Wong, aged 62, was appointed an Independent Non-ExecutiveDirector of HKT Limited (HKT) and HKT Management Limited, the trustee-managerof the HKT Trust, in May 2015. She is the Chairwoman of HKT's Remuneration Committee. Ms Wong has been an Independent Non-ExecutiveDirector of PCCW Limited (PCCW) since March 2012 and is the Chairwoman of the Regulatory Compliance Committee and a member of the Nomination Committee and the Remuneration Committee of the board of directors of PCCW. She was an Independent Non-ExecutiveDirector of Pacific Century Regional Developments Limited from June 2013 to April 2023.

Ms Wong is currently a financial advisor of Good Harbour Finance Limited.

She began her career as a management consultant at McKinsey & Company in the United States. Ms Wong returned to Hong Kong and joined the Hutchison Whampoa group of companies in 1988, taking on various positions.

She was managing director of Weatherite Manufacturing Limited,

an air conditioning manufacturer. Later, Ms Wong became chief executive officer of Metro Broadcast Corporation Limited. Eventually, she became chief financial officer of Star TV, Asia's first satellite television company. After leaving the Hutchison Whampoa Group,

she became group chief financial officer for the Pacific Century Group. After she resigned from the Pacific Century Group, she founded the Independent Schools Foundation in Hong Kong in 2000.

Ms Wong was educated in the United States at Stanford University where she received a Bachelor of Science degree. She holds a Master of Science degree from the Massachusetts Institute of Technology. Ms Wong was a member of the Central Policy Unit, the Government of the Hong Kong Special Administrative Region (think tank). She has served

on many educational boards including the Canadian International School of Hong Kong, Hong Kong Metropolitan University and was a member of the Joint Committee on Student Finance of Student Financial Assistance Agency.

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