Annual Financial Review

Non-controlling Interests Non-controlling interests of HK$14 million (2020: HK$16 million) mainly comprised the net profit attributable to the non-controlling shareholders of Sun Mobile Limited. Profit Attributable to Holders of Share Stapled Units/Shares of the Company Profit attributable to holders of Share Stapled Units/shares of the Company for the year ended December 31, 2021 was HK$4,808 million (2020: HK$5,303 million). LIQUIDITY AND CAPITAL RESOURCES The Group actively and regularly reviews and manages its capital structure to maintain a balance between shareholder return and sound capital position. Adjustments are made, when necessary, to maintain an optimal capital structure in light of changes in economic conditions and to reduce the cost of capital. HKT's gross debt6 was HK$43,886 million as at December 31, 2021 (December 31, 2020: HK$42,493 million). Cash and short-term deposits totaled HK$2,883 million as at December 31, 2021 (December 31, 2020: HK$2,630 million). HKT's gross debt to total assets was 40% as at December 31, 2021 (December 31, 2020: 41%). As at December 31, 2021, HKT had ample liquidity as evidenced by banking facilities totaling HK$32,209 million, of which HK$9,878 million remained undrawn. CREDIT RATINGS OF HONG KONG TELECOMMUNICATIONS (HKT) LIMITED As at December 31, 2021, Hong Kong Telecommunications (HKT) Limited, an indirect wholly-owned subsidiary of the Company, had investment grade ratings with Moody's Investors Service (Baa2) and S&P Global Ratings (BBB). CAPITAL EXPENDITURE² was Capital expenditure including capitalized interest for the year ended December 31, 2021 HK$2,458 million (2020: HK$2,437 million). Capital expenditure relative to revenue was 7.2% for the year ended December 31, 2021 (2020: 7.5%). Capital expenditure for HKT's Mobile business was steady in 2021 with spending focused on our 5G network expansion and enrichment. TSS capital expenditure dropped during the year, in line with the capital expenditure cycle of our extensive local fiber network and international cable systems. Overall capital expenditure increased slightly by 1% during the year due to the full-year impact of the integration of Now TV business with HKT. HKT will continue to invest in building digital capabilities to support its existing businesses and enable its growth in new areas, and prudently invest in expanding its 5G network, taking into account the prevailing market conditions, and using assessment criteria including internal rate of return, net present value and payback period. 12

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