HGC Environmental Electric believes in "survival of the fittest" and is unafraid of China Mobile's acquisition of Hong Kong Broadband. It continues to expand its fiber optic layout in Southeast Asia to seek growth

The CEO of HGC Global Communications, Guo Yongbang, stated that the industry landscape may change following the acquisition of Hong Kong Broadband (1310) by China Mobile (941), but competition has always existed. HGC believes in "survival of the fittest" and will continue to maintain its own positioning. He also pointed out that HGC has been in contact with the Communications Authority and believes that the regulatory body will "seriously monitor the market for any anti-monopoly issues."

CEO Guo Yongbang: Confident in Communications Authority's Anti-Monopoly Regulation

Guo Yongbang noted that HGC and Hong Kong Broadband have always had different market positioning, including HGC serving more international corporate clients and planning to expand into overseas markets and locations. Therefore, he believes HGC "has a place to stand." Regarding the competition in home broadband, he mentioned that it has always existed, and HGC's average monthly fee pricing is also lower than that of its competitor, so they are not afraid of a price war. Additionally, he expressed confidence in the Communications Authority's anti-monopoly regulation.

Loss of Hong Kong's Submarine Cable Hub, Philippines Completes Connection for Service

In terms of development, HGC invested in fiber optic infrastructure in the Philippines last year and connected it to Hong Kong. Guo Yongbang indicated that the main submarine cable system has been completed, with thousands of branches connecting to different locations in Asia. He pointed out that in recent years, the number of submarine cables connecting to Hong Kong has decreased, while connections in Southeast Asia have been continuously increasing, which may affect services. "In the next one or two years, Hong Kong will have a maximum of 17 cables left, while Singapore is heading towards 40. We cannot just sit here," he said. Therefore, in addition to expanding in the Philippines, HGC has also acquired a Malaysian company with a fiber optic construction license, looking to further expand its hub along the Southeast Asian "golden corridor," including Thailand, Laos, Cambodia, and Vietnam, seeking business growth.

Southeast Asia M&A Research, Exporting Hong Kong's Soft Power

Guo Yongbang continued to state that HGC has not stopped looking for acquisition projects. Currently, in addition to Hong Kong, it is also focusing on Southeast Asia, mainly due to the rapid economic growth in the region and the cultural and developmental similarities with Hong Kong. "Using experience, capital, and relationships, we can leverage Hong Kong's soft power to expand into Southeast Asia, which is a valuable opportunity."

CFO Indicates Smooth Refinancing, Debt Ratio Will Significantly Decrease

HGC is refinancing for bank loans, and Chief Financial Officer Jiang Weijie pointed out that the progress is currently smooth, maintaining the original financing scale for the time being, with interest rates lower than the previous round. The company's financial track record and future plans continue to gain recognition from banks. He further stated that the company's debt ratio is currently similar to that of its listed peers and is expected to decrease significantly in the future.

HGC's data shows that the gross profit from its one-stop hosting service in the first nine months of this year was HKD 75.5 million, a year-on-year increase of 7.4%, while the gross profit from its cybersecurity business was HKD 15.9 million, a substantial increase of 53%, and bandwidth continues to improve