Group 1 - Forbes released its 40th annual Global Billionaires List, with a total of 3,428 billionaires, an increase of 400 from last year, marking a new high since the list's inception in 1987. The total wealth of billionaires reached $20.1 trillion (approximately 139.05 trillion RMB) [2] - The United States continues to lead with 989 billionaires, followed by mainland China with 539 and India with 229. Elon Musk retained his title as the world's richest person for the second consecutive year, with a net worth of approximately $839 billion (about 5.8 trillion RMB) [2] - BYD Group has joined IATF AISBL, aiming to assist in addressing challenges related to the electrification, intelligence, and globalization of the automotive industry [3] Group 2 - Porsche is facing challenges in its electric transformation, expecting a slight decline in revenue, with a maximum of €36 billion (approximately $41.9 billion). The company has incurred about €2.4 billion in costs related to its electric vehicle strategy [4][5] - Porsche plans to reduce management levels and structure, aiming to cut approximately 3,900 jobs by the end of 2030, including 2,000 temporary workers [5] - Tencent Cloud has clarified that recent user complaints regarding high fees associated with OpenClaw are related to historical model usage costs, not the installation of OpenClaw itself [6] Group 3 - Yika Technology's CEO Liu Yingqi announced plans to recruit 5,000 "digital employees" as AI evolves, indicating a shift in management philosophy towards a tree-like structure combining human managers and digital employees [7][8] - Tencent's CEO Ma Huateng shared updates on the company's "lobster" product matrix, which includes various AI tools, leading to a rise in Tencent's stock price and market capitalization returning to 5 trillion HKD [8] - Feishu's CEO Xie Xin emphasized the importance of security in AI agents, noting that errors in enterprise settings could lead to significant consequences [11] Group 4 - Mango TV has established an independent AIGC innovation content center, which will collaborate with its program production center and has already formed a team of about 40 members to create original content [14] - OpenAI is reportedly planning to integrate its AI video generator Sora into the ChatGPT platform, which may enhance user engagement but also increase operational costs [14] - NIO's CEO Li Bin expressed gratitude for the board's approval of a stock incentive plan, which will grant him approximately 248 million restricted shares tied to specific performance targets [15] Group 5 - Cathay Pacific announced a net profit of HKD 10.828 billion for 2025, a year-on-year increase of 9.5%, and plans to distribute bonuses equivalent to over 11 weeks of salary to employees [19] - The company attributed its profit growth to increased capacity, stable passenger volume, and strong cargo demand, while also acknowledging geopolitical factors affecting operations [19] - The Chinese automotive market saw a decline in new energy vehicle sales in February, with a total of 765,000 units sold, representing a year-on-year decrease of 14.2% [29]

Financial Data and Key Metrics Changes - The company is projecting a 10% year-on-year growth in passenger capacity for 2026, despite a fleet growth of only 4% in passenger aircraft [3] - Jet fuel prices have almost doubled compared to the previous two months, significantly impacting operational costs [4] Business Line Data and Key Metrics Changes - The company has suspended flights to the Middle East, specifically Dubai and Riyadh, and is reallocating that capacity to other popular routes, such as London and Zurich [6] - HK Express is set to receive five new narrow-body aircraft this year, with no major delays expected in fleet delivery [9] Market Data and Key Metrics Changes - Demand for flights to Europe has surged due to reduced operations from Middle Eastern carriers, with similar trends observed in long-haul flights to the U.S. and Australia [15][17] - The cargo yield has been normalizing over the past few years, with no significant short-term impact from the Middle East situation on cargo operations [20] Company Strategy and Development Direction - The company is implementing a fuel surcharge mechanism to mitigate the impact of rising fuel costs, with plans to increase surcharges for both travel and cargo [4] - HK Express differentiates itself through high on-time performance and a strong brand presence in the Greater Bay Area, capturing a significant portion of revenue from mainland cities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for a peaceful resolution to the current conflict affecting fuel prices and operational stability [4] - The company is adapting to dynamic market conditions, adjusting pricing based on supply and demand while monitoring competitor actions [5] Other Important Information - The company has hedged 30% of its fuel for 2026, focusing on crude oil rather than crack spreads [4] - The operational environment remains volatile, with ongoing adjustments to flight schedules and capacity deployment [5] Q&A Session Summary Question: What drives the projected 10% capacity growth? - Management indicated that the delivery of new aircraft and month-on-month growth leading up to December will contribute to this capacity increase [3] Question: How will the company address higher fuel costs? - The company plans to increase fuel surcharges and adjust ticket prices based on market conditions [4][5] Question: How is capacity from canceled Middle East flights being deployed? - The company is reallocating capacity to other routes, particularly increasing flights to London and upgrading aircraft for Zurich [6] Question: Are there any delays in fleet delivery for HK Express? - Management confirmed that there are no major delays expected in fleet delivery, with new aircraft arriving on schedule [9] Question: How does HK Express differentiate itself from other low-cost carriers? - HK Express focuses on on-time performance and brand strength, leveraging its position in the Greater Bay Area to capture market share [11][12] Question: What is the demand outlook for Cathay Pacific post-Middle East tensions? - There has been a short-term surge in demand for long-haul flights, particularly to Europe and the U.S., due to changes in travel patterns [15][17]

Financial Data and Key Metrics Changes - The company is projecting a 10% year-on-year growth in passenger capacity for 2026, despite a fleet growth of only 4% in passenger aircraft [3] - Jet fuel prices have almost doubled compared to the previous two months, significantly impacting operational costs [4] Business Line Data and Key Metrics Changes - The company is currently flying to two destinations in the Middle East, with plans to suspend flights until the end of March, reallocating capacity to other popular routes such as London and Zurich [6] - HK Express is set to receive five new narrow-body aircraft this year, with no major delays expected in fleet delivery [9] Market Data and Key Metrics Changes - Demand for long-haul flights, particularly to Europe and the U.S., has surged due to reduced operations from Middle Eastern carriers [15][17] - The Australian market has also seen increased demand as travelers reroute through Hong Kong instead of the Middle East [18] Company Strategy and Development Direction - The company is implementing a fuel surcharge mechanism to mitigate the impact of rising fuel costs, with plans to announce increases for both travel and cargo [4] - HK Express differentiates itself through high on-time performance and a strong brand presence in Hong Kong and the Greater Bay Area, capturing a significant portion of revenue from mainland cities [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in supply and demand due to the Middle East situation and is adapting pricing strategies accordingly [5] - The cargo yield has been normalizing, but the company has not seen a major impact from the Middle Eastern disruptions on its cargo operations [20] Other Important Information - The company has hedged 30% of its fuel for 2026, focusing on crude oil rather than crack spreads [4] - The company is actively monitoring competition and market dynamics to adjust its strategies [5] Q&A Session Summary Question: What drives the projected 10% capacity growth? - Management explained that the delivery of new aircraft and month-on-month growth leading up to December will contribute to this capacity increase [3] Question: How will the company address higher fuel costs? - Management confirmed that fare adjustments and increased fuel surcharges are being considered to mitigate rising fuel prices [2][4] Question: How is capacity from canceled Middle East flights being deployed? - Management stated that capacity is being redirected to other popular routes, such as London and Zurich, while flights to the Middle East are suspended [6] Question: Are there any delays in fleet delivery for HK Express? - Management indicated that there are no major delays expected in fleet delivery, with new aircraft arriving on schedule [9] Question: How does HK Express differentiate itself from other low-cost carriers? - Management highlighted their strong on-time performance and brand recognition in the Greater Bay Area as key differentiators [11][12] Question: Has passenger yield normalized since the Middle East tensions? - Management noted that while there has been a surge in demand for certain routes, it is still early to determine if yields have fully normalized [14][15]

Financial Data and Key Metrics Changes - The company achieved a record revenue of HKD 116.8 billion in 2025, marking the highest revenue in its 80-year history [27] - Consolidated profit for the year was HKD 10.8 billion, a significant increase from HKD 9.9 billion in 2024, driven by a 26% increase in capacity [28][29] - Return on Capital Employed exceeded 10% for three consecutive years, indicating strong financial performance [8] Business Line Data and Key Metrics Changes - Cathay Pacific's revenue increased by almost 16%, with capacity up by 26%, leading to a 10% decrease in yield [39] - Cathay Cargo's revenue remained stable compared to 2024, with capacity increases primarily from passenger aircraft bellies, while yields normalized [42] - HK Express experienced a capacity increase of over 30%, but revenue only grew by 7%, impacted by changing customer preferences and new destination maturity [45][46] Market Data and Key Metrics Changes - The company launched 20 new destinations in 2025, exceeding 100 destinations worldwide [10] - Load factors for Cathay Pacific improved progressively over the year, indicating better capacity utilization [40] - The cargo business saw a strong peak in Q4, despite uncertainties in global trade dynamics [44] Company Strategy and Development Direction - The company aims to sustain its success from the past three years while focusing on improving customer experience [5][9] - The strategic vision for 2026 to 2030 includes becoming the world's best premium airline and enhancing its lifestyle brand [12][13] - A significant investment of HKD 100 billion is planned for fleet modernization and product upgrades [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 10% increase in passenger capacity for 2026, despite geopolitical challenges [51][54] - The company acknowledged ongoing supply chain challenges and the impact of the Middle East conflict on operations [52] - Management emphasized the importance of maintaining a happy team to drive customer satisfaction and profitability [6][14] Other Important Information - The company has been recognized with multiple industry awards, including being ranked among the top three airlines globally by Skytrax [10][11] - A second interim dividend of HKD 0.64 per share was announced, reflecting a policy to distribute approximately 50% of profit after tax [38] Q&A Session Summary Question: What are the expectations for passenger capacity growth in 2026? - The company expects to grow passenger capacity by around 10% in 2026, subject to geopolitical challenges [51] Question: How is the company addressing fuel cost fluctuations? - The company has hedged about 30% of its fuel for 2026, but acknowledges that jet fuel prices have significantly increased recently [30][31] Question: What is the outlook for HK Express? - Despite being loss-making in 2025, HK Express is expected to improve fundamentals and has a path to profitability [47]

2 Agenda Ronald Lam Chief Executive Officer Rebecca Sharpe 2025 ANNUAL RESULTS | ANALYST BRIEFING 11 MARCH 2026 Disclaimer This document has been prepared by Cathay Pacific Airways Limited (the "Company", and together with its subsidiaries, the "Group") solely for information purposes and certain information has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correc ...

Core Viewpoint - Cathay Pacific reported a net profit of HKD 10.828 billion for the year 2025, representing a year-on-year increase of 9.5%, maintaining its position as the most profitable airline in China despite geopolitical challenges affecting the industry [3]. Group 1: Financial Performance - The company announced a profit-sharing scheme for employees, distributing over 11 weeks of eligible wages [3]. - The growth in profit is attributed to increased capacity, stable passenger volume, and strong cargo demand [3]. Group 2: Geopolitical Impact - The ongoing geopolitical situation, particularly in the Middle East, has led to unpredictable changes in passenger and cargo flow, as well as fluctuations in aviation fuel prices [4]. - Fuel prices have reportedly doubled in March compared to January and February, prompting the company to adjust fuel surcharges [4]. - Cathay Pacific is currently maintaining a 30% fuel hedging ratio to mitigate fuel price volatility [4]. Group 3: Operational Adjustments - The company has suspended flights to Dubai and Riyadh until the end of March and is reallocating capacity to other regions, particularly Europe, where flight frequencies to London are being increased [4]. - The shift in passenger routes is evident, with many travelers from the Middle East now opting to transit through Hong Kong to Europe instead [5]. - Cargo operations are also affected, with increased demand for shipments from Hong Kong and Southeast Asia to Europe, although operational adjustments are required due to changes in fuel loading practices [5]. Group 4: Market Outlook - Despite geopolitical tensions, the overall market demand in Hong Kong and the Greater Bay Area remains resilient, although e-commerce demand has slowed following the U.S. cancellation of small tax exemptions [5]. - The company plans to continue expanding its route network, expecting a 10% increase in passenger capacity, which will also support cargo capacity growth [5]. - There is a noted shift in passenger preferences towards premium travel options, prompting the company to invest in improving cabin products and customer experience [5].

Core Viewpoint - Cathay Pacific has reported strong profitability despite potential disruptions from the Middle East conflict, with expectations for double-digit growth in passenger capacity. Financial Performance - The company reported a net profit of HKD 10.83 billion (approximately USD 1.38 billion), a year-on-year increase of 9.5%, primarily due to a non-recurring gain of approximately HKD 878 million from a supplier settlement [1][6] - Annual revenue increased by 12% to HKD 116.77 billion, exceeding analyst expectations of HKD 9.32 billion in net profit and HKD 113.96 billion in revenue [5][1] - The second half of the year saw a strong net profit performance, growing 14% to HKD 7.18 billion, nearly doubling compared to the first half [2][7] Passenger and Cargo Metrics - Annual passenger revenue grew by 16%, with the passenger load factor increasing from 83.2% to 85.2% [3][8] - The company anticipates a 10% increase in passenger capacity by 2026, driven by increased flight frequencies and new destinations [9] Operational Outlook - Cathay Pacific plans to receive eight new narrow-body aircraft this year, although supply chain disruptions and cost inflation are expected to impact the delivery of new aircraft, cabin products, and components [9] - In response to rising fuel costs, the company will hedge part of its expected fuel consumption to mitigate exposure to short-term price fluctuations [9] - The chairman noted that the current global geopolitical environment is causing unexpected volatility in passenger and cargo traffic, as well as aviation fuel prices [9]

该行该行料国泰2025下半年经营利润同比增长18%，净利润则大致持平，因客运及货运需求韧性被香港 快运亏损，以及一笔单次性9亿港元供应商和解收益所抵消。 该行认为两间公司短期内可受票价高企及货运收益率上升支持，另一方面却被油价走势所抵消。虽然其 燃油对冲提供短期缓冲，但仍低于欧洲同业水平，在波动的燃油环境中限制了利润率保障。 智通财经APP获悉，摩根大通发布研报称，国泰航空(00293)将于今日(11日)公布去年业绩。维持对国泰 及新航的"增持"评级，目标价分别18港元及8.4坡元。伊朗冲突影响全球航空业，令旅客及托运人改为 转经新加坡、中国香港及其他亚洲枢纽。该行指国泰及新加坡航空股价均下跌，但两间航空公司可跑赢 其他全球同业，因其有强劲资产负债表、审慎燃油对冲、灵活航线网络，以及对关键航道的独特准入 权。 ...

Core Viewpoint - Morgan Stanley maintains an "overweight" rating for Cathay Pacific (00293) and Singapore Airlines, with target prices set at HKD 18 and SGD 8.4 respectively, despite the impact of the Iran conflict on the global airline industry [1] Group 1: Company Performance - Cathay Pacific is expected to report its performance for the previous year today [1] - The airline's operating profit is projected to grow by 18% year-on-year in the second half of 2025, while net profit is expected to remain roughly flat [1] - The resilience in passenger and cargo demand is offset by losses from Hong Kong Express and a one-time supplier settlement gain of HKD 900 million [1] Group 2: Market Conditions - The Iran conflict has led travelers and shippers to reroute through Singapore, Hong Kong, and other Asian hubs, impacting the global airline industry [1] - Both Cathay Pacific and Singapore Airlines have seen stock price declines, but are expected to outperform other global peers due to strong balance sheets, prudent fuel hedging, flexible route networks, and unique access to key corridors [1] Group 3: Financial Considerations - High ticket prices and rising cargo yield are expected to support both airlines in the short term, although these benefits may be offset by oil price trends [1] - While fuel hedging provides short-term cushioning, it remains below the levels of European peers, limiting profit margin protection in a volatile fuel environment [1]

Core Viewpoint - Cathay Pacific Airways reported a strong financial performance for the year 2025, with significant growth in revenue and profit, leading to an increase in dividends for shareholders [1] Financial Performance - The company achieved a revenue of HKD 116.766 billion, representing a year-on-year increase of 11.88% [1] - Shareholders' profit attributable to Cathay Pacific amounted to HKD 10.828 billion, reflecting a year-on-year growth of 9.51% [1] - Basic earnings per share were reported at HKD 1.655 [1] Dividend Distribution - The company proposed a second interim dividend of HKD 0.64 per ordinary share for the year ending December 31, 2025, an increase of 30.6% from HKD 0.49 in the same period last year [1] - The total annual dividend per share is set at HKD 0.84, which is a year-on-year increase of 21.7% [1]