Hong Kong PCCW Limited is in an advanced stage of discussions with China Network Communications Group Corporation (China Netcom) regarding strategic and business opportunities, Jack So, deputy chairman and group managing director of the company, said Thursday.

"Further to our announcement in May on the discussions of potential co-operation opportunities with China Netcom, we have been working very closely with China Netcom in the past few months and have made significant progress in the negotiation." said so at the press conference.

He said that there is no definitive agreement as yet.

PCCW Limited, the largest communications provider in Hong Kong, reported stable consolidated revenue and a higher attributable profit for the first six months of 2004.

Net profit attributable to shareholders for the first six months of 2004 was 805 million Hong Kong dollars (US$103 million), a 15 percent increase from the same period last year. Revenue was maintained at 10.726 billion Hong Kong dollars (US$1.375 billion), according to the company.

In the absence of unforeseen circumstances, the directors intend to declare an interim dividend of 0.055 Hong Kong dollars per ordinary share payable in November 2004, it said.

(Xinhua News Agency August 27, 2004)