HKBN Expands Co-Ownership to 871 with Incremental Investment of HK$290 Million for Co-Ownership III Plus

HONG KONG,Feb. 27,2020 -- HKBN Ltd. ("HKBN" or the "Company"; SEHK stock code: 1310) is ecstatic to announce today that its Co-Ownership Plan III Plus ("CO3+") has garnered overwhelming participation from Talents,including many former WTT and JOS employees who were integrated after being acquired by HKBN. Through this development – the combined number of Co-Owners under Co-Ownership Plans I,II,and III Plus now totals at 871,including 790 with an incremental investment of HK$290 million for the latest CO3+ tranche. HKBN's LUCA (Legal Unfair Competitive Advantage) is that majority of its supervisors-and-above-level Talents are Co-Owners with full alignment for long term shareholder value creation by investing their own savings into buying HKBN shares under the Co-Ownership Plan.

Question – What is the best way to ensure a bridge is built safely? Answer – Simply get the builders and their families to live underneath the bridge after it is built. This is the living-under-the-bridge voluntary commitment made by 871 Co-Owners.

CY Chan,HKBN Co-Owner and Chief Talent & Purpose Officer added some perspective,"Our CO3+ tranche has a 3-year cumulative performance target with bonus share returns up to 1.33 times of the purchased shares by our Co-Owners,plus a 1-year cooling off period before we grant the bonus shares; this 4-year period allows us to focus on long-term value creation beyond the immediate market challenges. The fact that we are investing HK$290 million of our family savings into CO3+ is clear evidence of our confidence in the long-term future of our company."

Unlike legacy practices that give free stock options to a handful of selected senior executives without requiring skin in the game,HKBN's CO3+ is open to its supervisors-and-above-level Talents. Looking at the take-up profile by seniority,it is very clear that HKBN's senior executives are leading by example.

Take-up rate for Co-Ownership 1,2 and 3+

Seniority

Take-up rate (%)

Management Committee

100%

Director

100%

Associate Director

100%

Manager

77%

Supervisor

51%

Total eligible for Co-Ownership

59%*

* Includes 790 who invested into the most recent CO3+ tranche. In total,HKBN has about 6,000 Talents.

William Yeung,HKBN Co-Owner and Executive Vice-chairman and NiQ Lai,HKBN Co-Owner and Group CEO concluded,"As 871 leaders,don't listen to our words,rather follow our family bank accounts."

For full CO3+ details,please refer to the announcement:

https://reg.hkbn.net/WwwCMS/upload/pdf/en/e_CO3Plus_CompletionAnnouncement_2020_1stBatchPurchase.pdf

Almira Chan,Co-Owner & Chief Strategy Officer,who now heads our Beyond-HK operations,added,"This current CO3+ Planis designed for our Hong Kong related business; we will shortly complete our pain/GAIN Co-Ownership for our Beyond-HK business which will see further deepening of our overall Co-Ownership Plan."

Achieving Purpose and distributed wealth-creation in tandem

Mirroring the Company's purpose-driven objective to create a lasting community impact wherever it operates,a majority of the 790 CO3+ Co-Owners have pledged to donate some of their bonus shares to the HKBN Talent CSI Fund if the KPIs are achieved. HKBN's Executive Directorshave personally donated 4 million HKBN shares worth over HK$57 million at today's valuation as seed funding to kick things off. Collectively,this remarkable commitment from HKBN's Co-Owners will endow the HKBN Talent CSI Fund with perpetual capital (includes twice-a-year share dividends) to sustainably fuel its purposeful initiatives in communities where HKBN operates.

As the value of this fund is tied with the performance of HKBN,this lock-step gives HKBN Co-Owners Purpose to continually outperform. Established in 2015 through a HK$5 million seeding donation made by Co-Ownership Plan I Co-Owners,the HKBN Talent CSI Fund is an independently run charity.

William and NiQ added,"As a company with a core purpose to 'Make our Home a Better Place to Live',we're exhilarated that such a large number of our Co-Owners have pledged to donate part of their bonus shares upside and use growth of our share price to benefit our local communities."

The following is a sample of what HKBN's Co-Owners are saying:

"Becoming a Co-Owner is like signing up for a great exploration journey. I joined for the stable dividend returns and to share the potential upside when HKBN outperforms. I believe in what we do,so I invested in what I believe."

-- Anthony Fung,Co-Owner & Deputy Financial Controller

"Putting my own saving is more than an investment,and being a Co-Owner is more than just a new identity. This investment compels me to make the right decisions,drive change and deliver extraordinary business value like entrepreneurs,not employees."

-- Brandon Tang,Co-Owner & Assistant Manager – Digital

"Risk and opportunity are always aligned. I will focus on the opportunities ahead and create the momentum for my teammates to work on and exceed our targets."

-- Desmond Chan,Co-Owner & Senior Manager – Network Development,Enterprise Solutions (Former WTT Talent)

"I've been with HKBN for about 10 years... I know our company's operations and management's strategy very well and have full confidence on our growth prospects."

-- Kelvin Leung,Co-Owner & Senior Telemarketing Supervisor,Residential Solutions

"I will do my best to help the company achieve our AFF targets. We must be more proactive and innovative. We can't just wait for instructions. I believe that as Co-Owners we can make HKBN grow,and I would like also make our home a better place to live."

-- Yoyo Szeto,Co-Owner & HKBN JOS Assistant Manager – Learning and Development (Former JOS Talent)

For the full list of HKBN Co-Owners,please click the link below:

https://reg.hkbn.net/WwwCMS/upload/pdf/en/20200227_Co-Owner-list-en.pdf

About HKBN Ltd.

HKBN Ltd. (SEHK Stock Code: 1310,together with its subsidiaries,"HKBN" or the "Group") is an investment holding company. Headquartered in Hong Kong with operations spanning across Hong Kong,Singapore,Malaysia,mainland China and Macau,the Group is a leading integrated telecom and technology solutions provider. Through three core brands,Hong Kong Broadband Network,HKBN Enterprise Solutions and JOS,the Group offers comprehensive one-stop Information and Communications Technology ("ICT") solutions that include broadband,data connectivity,managed Wi-Fi,integrated cloud solutions,information security,mobile,voice communications,IoT,big data,enterprise applications,data centre facilities,business continuity,system integration and OTT entertainment. HKBN's extensive tri-carrier fibre infrastructure covers 2.4 million residential homes and over 7,200 commercial buildings and facilities across Hong Kong. Committed to creating a lasting positive impact to wherever it operates,HKBN embraces a Core Purpose to "Make our Home a Better Place to Live". The Group is managed by around870 of Co-Owners (supervisory and management level Talents in the Group) who invested their savings to buy shares of HKBN Ltd.

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