[Performance Highlights and Chairman's Report](index=1&type=section&id=I.%20Performance%20Highlights%20and%20Chairman's%20Report) [Performance Highlights](index=1&type=section&id=1.1%20Performance%20Highlights) This section outlines the unaudited results for the six months ended June 30, 2025, including revenue, EBITDA, EBIT, reported profit, underlying profit, and interim dividend per share, compared to the same period last year, providing data under both IFRS 16 post-adoption and pre-adoption accounting standards 2025 H1 Key Financial Data (Post-IFRS 16) | Metric | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 240,663 | 232,644 | - | | Total EBITDA | 56,983 | 63,422 | - | | Total EBIT | 23,161 | 30,955 | - | | Reported Profit (Underlying) | 11,321 | 10,205 | +11% | | Reported Profit (One-off Items) | (10,469) | - | - | | Reported Profit (Total) | 852 | 10,205 | -92% | | Reported Earnings Per Share | 0.22 | 2.66 | -92% | | Interim Dividend Per Share | 0.710 | 0.688 | +3% | 2025 H1 Key Financial Data (Pre-IFRS 16) | Metric | 2025 (HKD million) | 2024 (HKD million) | Change (Reported Currency) | Change (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 240,663 | 232,644 | +3% | +3% | | Total EBITDA | 44,998 | 52,201 | -14% | -15% | | Total EBIT | 20,487 | 28,843 | -29% | -30% | | Reported Profit | 440 | 10,192 | -96% | -98% | - The Group has adopted International Financial Reporting Standard 16 'Leases' ('IFRS 16') for its statutory reporting, while its management reporting continues to adopt the previous leasing accounting standard, International Accounting Standard 17 'Leases' ('IAS 17')[2](index=2&type=chunk) [Chairman's Report](index=2&type=section&id=1.2%20Chairman's%20Report) The Chairman's Report highlights a challenging economic environment in the first half of 2025, yet the Group achieved robust underlying profit growth, primarily driven by the merger of its UK telecom business with Vodafone, and strong performance in the Ports, Retail, and Infrastructure divisions, also noting a one-off non-cash loss and interim dividend distribution [Macroeconomic Environment and Group Performance](index=2&type=section&id=1.2.1%20Macroeconomic%20Environment%20and%20Group%20Performance) The economic environment in the first half of 2025 was challenging due to escalating geopolitical and trade tensions and weak consumer sentiment, with the Group's performance favorably impacted by exchange rate fluctuations but unfavorably by commodity prices, achieving a robust 11% growth in underlying profit net on a pre-IFRS 16 basis - The economic situation in the first half of **2025** was challenging, with escalating geopolitical and trade tensions, coupled with weak consumer sentiment[3](index=3&type=chunk) - Overall, exchange rate fluctuations had a favorable impact on performance, while commodity price movements did not[3](index=3&type=chunk) 2025 H1 Underlying Profit Growth (Pre-IFRS 16) | Metric | 2025 H1 (HKD million) | 2024 H1 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Underlying Net Profit | 11,362 | 10,192 | +11% | | Underlying EBITDA | 55,920 | 52,201 | +7% | | Underlying EBIT | 31,409 | 28,843 | +9% | - Growth was driven by enhanced performance in the Ports division, improvements in the Retail division, increased contributions from the Infrastructure division, and strong performance from CK Hutchison Group Telecom and treasury operations[3](index=3&type=chunk) [UK Telecom Business Merger](index=2&type=section&id=1.2.2%20UK%20Telecom%20Business%20Merger) The Group completed the merger of its UK telecom business with Vodafone UK in May 2025, recognizing a one-off non-cash loss but receiving approximately GBP 1.3 billion in net cash proceeds - The Group completed a major strategic transaction in May **2025**, the merger of its UK telecom business with Vodafone UK ('UK Merger')[3](index=3&type=chunk) - On a pre-IFRS **16** basis, the Group recognized a one-off non-cash loss and related impact of **HKD 10.922 billion** from the UK Merger[4](index=4&type=chunk) - The Group also received net cash proceeds of approximately **GBP 1.3 billion** from the merger[4](index=4&type=chunk) Impact of UK Merger on Reported Profit | Metric | 2025 H1 (HKD million) | 2024 H1 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Reported Profit (Pre-IFRS 16) | 440 | 10,192 | -96% | | Reported Profit (Post-IFRS 16) | 852 | 10,205 | -92% | | Reported Earnings Per Share (Post-IFRS 16) | 0.22 | 2.66 | -92% | [Dividend Policy](index=2&type=section&id=1.2.3%20Dividend%20Policy) The Board recommended an interim dividend of HKD 0.71 per share, representing an increase from the same period last year Interim Dividend Per Share | Metric | 2025 H1 (HKD) | 2024 H1 (HKD) | Change | | :--- | :--- | :--- | :--- | | Interim Dividend Per Share | 0.710 | 0.688 | +3% | - The Board recommended an interim dividend to be paid on Thursday, September **25**, **2025**, to shareholders whose names appear on the Company's register of members on Tuesday, September **16**, **2025**[5](index=5&type=chunk) [Business Segment Performance](index=3&type=section&id=II.%20Business%20Segment%20Performance) [Ports and Related Services](index=3&type=section&id=2.1%20Ports%20and%20Related%20Services) The Ports and Related Services division reported a 9% year-on-year increase in revenue, with EBITDA and EBIT growing by 10% and 12% respectively in the first half of 2025, driven by higher throughput, increased storage income, and effective cost management, with significant full-year profit growth expected Ports and Related Services Division 2025 H1 Performance | Metric | 2025 H1 (HKD million) | 2024 H1 (HKD million) | Change | Change (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 23,597 | 21,594 | +9% | +10% | | EBITDA | 8,719 | 7,938 | +10% | +8% | | EBIT | 6,508 | 5,785 | +12% | +11% | | Throughput (million TEUs) | 44.0 | 42.3 | +4% | - | - The increase in throughput was mainly driven by Yantian Port, Shanghai Port, and container terminals in Asia and the Middle East[7](index=7&type=chunk) - Storage income from Mexico and European ports surged by **27%**[7](index=7&type=chunk) - The Ports division made significant progress in reducing its environmental footprint, with Scope **1** and **2** emissions per TEU decreasing by nearly **4%** year-on-year, and diesel consumption reducing by **5%** year-on-year[37](index=37&type=chunk) [Retail](index=4&type=section&id=2.2%20Retail) The Retail division's total revenue grew by 8%, with EBITDA and EBIT increasing by 12% and 14% respectively in the first half of 2025, primarily driven by significant growth in health and beauty businesses in the UK, Poland, and the Philippines, though China's business was affected by weak consumer demand, with future growth strategies focusing on optimizing store locations, expanding online presence, and enhancing customer experience Retail Division 2025 H1 Performance | Metric | 2025 H1 (HKD million) | 2024 H1 (HKD million) | Change | Change (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 98,840 | 91,469 | +8% | +6% | | EBITDA | 7,974 | 7,089 | +12% | +8% | | EBIT | 6,180 | 5,433 | +14% | +9% | | Number of Stores | 16,935 | 16,548 | +2% | - | - Significant growth was observed in the health and beauty businesses in the UK, Poland, and the Philippines[9](index=9&type=chunk) - The China health and beauty business continued to underperform due to weak consumer demand, resulting in a **4%** reduction in store count[9](index=9&type=chunk)[39](index=39&type=chunk) - The number of dark stores for the China health and beauty business increased from **131** as of December **31**, **2024**, to **394** as of June **30**, **2025**, further enhancing online business capabilities[39](index=39&type=chunk) - The

Core Viewpoint - The China Securities Hong Kong 300 Communication Services Index has shown significant growth, with a 35.47% increase year-to-date, indicating a strong performance in the communication services sector in Hong Kong [1][2]. Group 1: Index Performance - The China Securities Hong Kong 300 Communication Services Index reported a value of 1613.72 points, with a monthly increase of 8.87% and a quarterly increase of 19.14% [1]. - The index is designed to reflect the overall performance of different industries in the Hong Kong market, based on the China Securities industry classification standards [1]. Group 2: Index Composition - The top ten holdings of the index include Tencent Holdings (15.4%), NetEase-S (14.3%), China Mobile (13.8%), Baidu Group-SW (13.04%), Kuaishou-W (11.78%), Cheung Kong (7.32%), China Telecom (4.52%), China Unicom (3.28%), Bilibili-W (2.89%), and China Tower (2.88%) [1]. - The index is fully composed of stocks listed on the Hong Kong Stock Exchange, with a 100% allocation [1]. Group 3: Industry Breakdown - The industry composition of the index shows that digital media accounts for 46.81%, telecommunications services for 30.27%, cultural entertainment for 16.22%, communication technology services for 2.88%, data centers for 1.97%, communication equipment for 1.06%, and marketing and advertising for 0.79% [2]. - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2].

Core Viewpoint - The ongoing port transaction involving Li Ka-shing's CK Hutchison Holdings and China COSCO Shipping Group has raised significant concerns, particularly regarding the sale of key Panama Canal ports to a U.S. consortium led by BlackRock, amidst geopolitical tensions and regulatory scrutiny [1][3][5]. Group 1: Transaction Details - CK Hutchison Holdings announced plans to sell global port assets, including two critical ports in Panama, for $22.8 billion [1]. - The transaction has faced scrutiny from Chinese regulatory authorities, with the State Administration for Market Regulation indicating it would conduct a legal review of the deal [3][5]. - On April 22, CK Hutchison confirmed the sale of Balboa and Cristobal ports to the U.S. consortium, which are strategically located at the Panama Canal [3][5]. Group 2: Regulatory and Geopolitical Implications - The Chinese market regulator halted the transaction on April 23, citing concerns under the Anti-Monopoly Law, coinciding with U.S. military exercises in the canal area [5][9]. - The involvement of the Chinese government in reviewing the deal suggests heightened sensitivity to foreign control over critical infrastructure [5][9]. - The U.S. military's actions during this period indicate a potential geopolitical dimension to the transaction, raising questions about the implications for U.S.-China relations [9]. Group 3: Strategic Moves by Companies - China COSCO Shipping Group is seeking at least a 20% stake in the port transaction, but it appears that it will not acquire shares in the two Panama Canal ports [5][7]. - CK Hutchison's reluctance to allow a state-owned enterprise to hold stakes in the two key ports suggests a strategic maneuver to maintain control over valuable assets [7]. - The situation reflects a broader trend of Chinese companies navigating complex international transactions amid regulatory and geopolitical challenges [7].

Group 1 - The core index of the CSI Hong Kong-Shenzhen 500 Communication Services Index reported a value of 2130.47 points, with a monthly increase of 12.14%, a three-month increase of 18.91%, and a year-to-date increase of 24.37% [1] - The CSI Hong Kong-Shenzhen 500 Communication Services Index is categorized into 11 industries, reflecting the overall performance of different industry companies' securities [1] - The top ten weighted stocks in the index include Tencent Holdings (14.04%), China Mobile (13.1%), and Xinyi Technology (8.37%) among others [1] Group 2 - The industry composition of the CSI Hong Kong-Shenzhen 500 Communication Services Index shows that telecommunications services account for 36.87%, communication equipment for 27.08%, and digital media for 26.09% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Special circumstances may lead to temporary adjustments of the index samples, such as delisting or corporate actions like mergers and acquisitions [2]

Core Viewpoint - Li Ka-shing, a prominent Chinese businessman, is rapidly divesting his assets in China, leading to a shift in public perception and speculation about his motivations [2][6]. Group 1: Asset Divestment - In July, Li Ka-shing's Cheung Kong Group sold 400 residential units across four projects, marking a significant asset liquidation [3]. - The lowest entry-level property was priced at approximately 400,000 yuan, which is about one-third of the down payment for similar-sized residences in Hong Kong [4]. - By early August, many Cantonese-speaking Hong Kong buyers were reportedly rushing to purchase remaining units, indicating a strong demand despite the market conditions [6]. Group 2: Market Strategy and Historical Context - Historically, Li Ka-shing has been adept at acquiring land during market downturns and selling at peaks, but his current actions during a market low raise questions about his strategy [6][8]. - The case of the South City Hub project in Chengdu exemplifies his strategy of land hoarding and delayed development, where he purchased land in 2004 for over 2.1 billion yuan and later profited significantly from its eventual sale [10][11]. - By 2020, the average residential price for the land he acquired had soared to 24,000 yuan per square meter, yielding substantial profits from his long-term holding strategy [15]. Group 3: Regulatory Environment and Future Implications - The tightening of real estate regulations in China post-2015 has impacted Li Ka-shing's land hoarding tactics, leading to increased scrutiny and penalties for such practices [26]. - The shift in policy indicates a move towards promoting a healthier real estate market, which may challenge the viability of Li's previous investment strategies [27][28]. - The changing landscape suggests that the era of "time for space" strategies may be coming to an end, necessitating a reevaluation of capital operations in the real estate sector [27][28].

Core Points - The 2025 Shanghai Cooperation Organization (SCO) Finance Ministers and Central Bank Governors meeting was held on June 3 in Beijing, focusing on deepening regional financial cooperation [1][3] - The meeting discussed global and regional economic and financial challenges, sharing policy practices related to fiscal and monetary issues, green transformation, and financial development [3] Group 1 - The meeting supported actions to enhance regional financial cooperation, including the establishment of the SCO Development Bank and the creation of an SCO financial think tank network [3] - Discussions included improving local currency settlement arrangements and deepening digital inclusive finance cooperation [3] - The meeting emphasized the need for member countries to uphold multilateralism and strengthen macroeconomic policy coordination [3] Group 2 - The current global landscape is characterized by rapid changes, including a new round of technological revolution and industrial transformation, presenting new cooperation opportunities for SCO member countries [3] - Challenges such as trade protectionism, globalization backlash, geopolitical conflicts, and climate change pose significant threats to global and regional economic stability [3] - The meeting aimed to foster a closer SCO community and contribute to a new phase of financial cooperation among member states [3]

Market Overview - The Hang Seng Index (HSI) closed at 24,793.53, down by 113.28 points or 0.45% on August 11 [1] - The index reached a high of 24,931.26 and a low of 24,760.85 during the trading session [1] Major Blue-Chip Stocks - HSBC Holdings closed at HKD 100.791, up by 0.84% compared to the Hong Kong close [2] - Tencent Holdings closed at HKD 558.587, down by 0.43% compared to the Hong Kong close [2] ADR Performance - Tencent Holdings (ADR) decreased by 2.413 HKD, or 0.43%, with an ADR price of USD 71.160 [3] - Alibaba Group (ADR) fell by 2.088 HKD, or 1.76%, with an ADR price of USD 118.640 [3] - HSBC Holdings (ADR) increased by 0.841 HKD, or 0.84%, with an ADR price of USD 64.200 [3] - Other notable movements include: - Xiaomi Group (ADR) down by 0.483 HKD, or 0.95% [3] - AIA Group down by 0.185 HKD, or 0.25% [3] - Meituan down by 0.983 HKD, or 0.82% [3] - BYD Company down by 0.740 HKD, or 0.66% [3]

Core Points - Chen Yong, the chairman of Shahe Co., Ltd., has resigned due to work adjustments, effective immediately, and will no longer hold any position within the company [2][4] - The company will promptly complete the election of a new director and chairman [2] - Shahe Co., Ltd. has faced significant business contraction, with Q1 revenue of only 7.94 million, a 96.23% year-on-year decline, and a net loss of 9.538 million, a 120.56% year-on-year decrease [5] Company Background - Shahe Co., Ltd. was established in July 1987, primarily engaged in real estate development and property management, with actual control by the Shenzhen State-owned Assets Supervision and Administration Commission [5] - Chen Yong has a strong background in real estate management, having held various positions within the industry before becoming chairman in July 2023 [4] Performance Challenges - The company is expected to report a net loss of 18 to 20 million for the first half of the year, compared to a profit of 54.11 million in the same period last year [5] - The decline in performance is attributed to a decrease in the area and revenue from real estate project handovers [5] - Market analysts indicate that Chen Yong's departure comes at a critical time for the company, which is under pressure from both performance issues and industry adjustments [5]

金融界8月11日消息，上证指数上涨0.34%，中证港股通TMT主题指数 (港股通 TMT，931026)报4636.77 点。 数据统计显示，中证港股通TMT主题指数近一个月上涨5.56%，近三个月上涨14.05%，年至今上涨 36.12%。 据了解，中证港股通TMT主题指数从港股通范围内选取50只TMT主题领域的上市公司证券作为指数样 本，以反映相关行业主题上市公司证券的整体表现。该指数以2014年11月14日为基日，以3000.0点为基 点。 从指数持仓来看，中证港股通TMT主题指数十大权重分别为：腾讯控股（14.76%）、中国移动 （13.61%）、小米集团-W（12.78%）、快手-W（8.13%）、中芯国际（8.02%）、长和（4.72%）、联 想集团（3.22%）、中国电信（2.95%）、金蝶国际（2.13%）、中国联通（2.12%）。 从中证港股通TMT主题指数持仓的市场板块来看，香港证券交易所占比100.00%。 从中证港股通TMT主题指数持仓样本的行业来看，通信服务占比56.62%、信息技术占比43.38%。 资料显示，指数样本每半年调整一次，样本调整实施时间分别为每年6月和12月的第二个星 ...

Core Points - The Shanghai Composite Index increased by 0.34%, while the China Securities Hong Kong 300 Communication Services Index (H300 Communication) reported a value of 1578.18 points [1] - The H300 Communication Index has seen a rise of 4.79% over the past month, 16.90% over the past three months, and 32.48% year-to-date [1] Group 1: Index Overview - The China Securities Hong Kong 300 Industry Index series classifies securities based on the China Securities Industry Classification Standard, reflecting the overall performance of different sectors in the Hong Kong market [1] - The base date for the index is December 31, 2004, with a base point of 1000.0 [1] Group 2: Top Holdings - The top ten holdings of the H300 Communication Index are Tencent Holdings (15.07%), NetEase-S (13.89%), China Mobile (13.81%), Baidu Group-SW (12.96%), Kuaishou-W (12.72%), Cheung Kong (7.38%), China Telecom (4.5%), China Unicom (3.24%), China Tower (2.93%), and Bilibili-W (2.79%) [1] Group 3: Sector Composition - The sector composition of the H300 Communication Index includes Digital Media (47.10%), Telecom Services (30.30%), Cultural Entertainment (15.78%), Communication Technology Services (2.93%), Data Centers (2.03%), Communication Equipment (0.99%), and Marketing & Advertising (0.86%) [2] Group 4: Sample Adjustment - The index sample is adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Weight factors are adjusted in accordance with the sample changes, and any temporary adjustments will follow the same protocol as the index sample adjustments [2]