Core Viewpoint - The company, Kowloon Development Company Limited (01997), announced a mid-term dividend of HKD 0.66 per share to be distributed on September 11, 2025 [1] Summary by Category Company Announcement - Kowloon Development Company Limited will distribute a mid-term dividend of HKD 0.66 per share [1]

智通财经APP讯，九龙仓置业(01997)发布公告，该公司将于2025年9月11日派发中期股息每股0.66港 元。 ...

Core Viewpoint - The company reported a decline in revenue and a significant increase in shareholder losses for the first half of 2025, indicating challenges in the current market environment [1] Financial Performance - The company's revenue for the first half of 2025 was HKD 6.407 billion, a year-on-year decrease of 1.45% [1] - Shareholder losses amounted to HKD 2.406 billion, representing a year-on-year increase of 128.71% [1] - The loss per share was HKD 0.79, and the interim dividend declared was HKD 0.66 per share [1] Market Environment - The number of inbound tourists in Hong Kong increased by 12%, while local outbound tourism showed signs of adjustment [1] - Retail sales in Hong Kong experienced a narrowing decline, with preliminary positive growth recorded in May and June, ending a 14-month downward trend [1] Business Strategy - The company is enhancing experiential retail services to deepen customer engagement and drive sales in response to changing tourism and consumption patterns [1] Property Market - The office market continues to face weak demand and oversupply, but the company's office portfolio showed improvement in occupancy rates [1] - Hotel occupancy rates increased, although room rates are under pressure due to regional competition and consumer sentiment [1] Asset Management - The company's investment properties recorded impairment losses due to soft asset values in the current market [1] - The company maintained prudent financial management, reducing net debt to HKD 33.3 billion, the lowest level since its listing [1] - The average interest cost decreased to 4.4%, resulting in a 27% saving in borrowing costs, with a healthy debt ratio of 17.6% [1]

九龙仓置业(01997)发布2025年中期业绩，集团收入64.07亿港元，同比减少1.45%;股东应占亏损24.06亿 港元，同比扩大128.71%;每股亏损0.79港元;第一次中期股息每股0.66港元。 在资产价值疲软的市况下，集团的投资物业录得重估减值。 为应对波动的市场环境，集团维持审慎的财务管理措施。截至期末，债务净额进一步减至333亿港元， 是公司上市以来最低水平。平均利息成本降至4.4%，令借贷成本节省27%。负债比率维持在17.6%的健 康水平。 在香港，政府加大力度宣传本地盛事。入境旅客人数持续增长，录得12%升幅。本地出境旅游有回调迹 象。本港零售销售跌幅收窄，并于五月和六月录得初步正增长，结束了连续十四个月的跌势。因应不断 变化的旅游及消费模式，集团积极提升体验式零售服务，以深化顾客的参与并推动销售。 虽然写字楼市场仍然面对需求疲弱和供应过剩夹击的难题，但集团的写字楼组合在出租率改善的带动下 表现不俗。酒店入住率有所增长，惟受地区竞争和消费意欲影响，房价面临压力。 ...

Core Viewpoint - The company reported stable underlying net profit for the first half of 2025, with a slight decrease in revenue and operating profit compared to the previous year [1] Financial Performance - Underlying net profit for the first half of 2025 was HKD 3.119 billion, compared to HKD 3.123 billion in 2024, translating to earnings per share of HKD 1.03 [1] - Total revenue decreased by 1% to HKD 6.407 billion, while operating profit fell by 5% to HKD 4.684 billion [1] - Investment property revenue decreased by 3% to HKD 5.371 billion, with operating profit down 4% to HKD 4.528 billion [1] - Hotel revenue increased by 2% to HKD 766 million, with operating profit rising to HKD 47 million [1] - Development property revenue was HKD 58 million, resulting in an operating loss of HKD 1 million [1] Dividend Announcement - The first interim dividend declared is HKD 0.66 per share, an increase from HKD 0.64 in 2024, with a total payout of HKD 2.004 billion, representing 65% of the underlying net profit from investment properties and hotels [1] Impairment and Losses - The company recorded a net impairment loss on investment properties of HKD 5.118 billion, leading to a shareholder loss of HKD 2.406 billion for the first half of 2025, compared to a loss of HKD 1.052 billion in 2024 [1] - Basic loss per share was HKD 0.79 [1] Investment Income - Investment operating profit, primarily from dividend income, increased by 2% to HKD 143 million [1]

EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 九龍倉置業地產投資有限公司 | | 股份代號 | 01997 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 截至二○二五年六月三十日止半年度中期股息 | | | 公告日期 | 2025年8月7日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 中期（半年期） | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年6月30日 | | 宣派股息 | 每 股 0.66 HKD | | 股東批准日期 | 不適用 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | 每 股 0.66 HKD | | 匯率 | 1 HKD : 1 HKD ...

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) This section provides an overview of the Group's financial performance, interim dividend declaration, and key operational achievements for the period [Group Performance](index=1&type=section&id=Group%20Performance) For the six months ended June 30, 2025, the Group's underlying net profit remained stable at HKD 3.119 billion, consistent with the prior year, but a widened revaluation loss on investment properties of HKD 5.118 billion led to an increased loss attributable to shareholders of HKD 2.406 billion, with basic loss per share at HKD 0.79 H1 2025 Performance Overview | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Underlying Net Profit | HKD 3.119 billion | HKD 3.123 billion | | Net Revaluation Loss on Investment Properties | (HKD 5.118 billion) | (HKD 4.426 billion) | | Group Loss Attributable to Shareholders | (HKD 2.406 billion) | (HKD 1.052 billion) | | Basic Earnings Per Share | HKD 1.03 | HKD 1.03 | | Basic Loss Per Share | (HKD 0.79) | (HKD 0.35) | [Interim Dividend](index=1&type=section&id=Interim%20Dividend) The Board declared a first interim dividend of HKD 0.66 per share, a 3.1% increase from the prior year, totaling HKD 2.004 billion, representing 65% of underlying net profit from Hong Kong investment properties and hotels, reflecting consistent dividend policy Interim Dividend Details | Item | Amount/Date | | :--- | :--- | | First Interim Dividend | HKD 0.66 per share (2024: HKD 0.64) | | Total Dividend Payout | HKD 2.004 billion | | Payment Date | September 11, 2025 | [Performance Highlights](index=1&type=section&id=Performance%20Highlights) Despite declining investment property income and profit, and expanded revaluation losses, the Group achieved a 27% reduction in borrowing costs and a record-low gearing ratio of 17.6% through effective financial management, maintaining robust underlying net profit and increasing interim dividend payout - **Financial Optimization**: Borrowing costs reduced by **27%**, gearing ratio decreased to a new low of **17.6%**[6](index=6&type=chunk) - **Profitability**: Underlying net profit remained stable, but revaluation loss on investment properties widened[6](index=6&type=chunk) - **Shareholder Returns**: Consistent dividend policy maintained, with an increase in interim dividend per share[6](index=6&type=chunk) [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) This section reviews the market environment, performance of core properties, and the Group's strategic outlook [Market Environment and Financial Management](index=2&type=section&id=Market%20Environment%20and%20Financial%20Management) Amid geopolitical tensions and economic uncertainties, Hong Kong's retail market shows initial recovery, while office and hotel sectors remain under pressure; the Group's prudent financial management reduced net debt to a post-listing low and maintained a healthy gearing ratio of 17.6%, effectively navigating market volatility - **Market Trends**: Inbound tourist arrivals increased by **12%**, retail sales decline narrowed, with positive growth in the last two months; the office market faces dual pressures of weak demand and oversupply[7](index=7&type=chunk) - **Financial Strategy**: Maintained prudent financial management and actively reduced debt[7](index=7&type=chunk) Key Financial Management Indicators | Indicator | Period-End Data | | :--- | :--- | | Net Debt | HKD 33.3 billion (Lowest since listing) | | Average Interest Cost | 4.4% | | Borrowing Cost Savings | 27% | | Gearing Ratio | 17.6% | [Core Property Performance](index=2&type=section&id=Core%20Property%20Performance) During the period, Harbour City maintained stable overall revenue and operating profit with a 93% mall occupancy rate, while Times Square's overall revenue and operating profit declined by 15% and 19% respectively due to market conditions, though its mall occupancy rate rose to 96%; both properties actively introduced top brands and new concept stores to enhance competitiveness [Harbour City](index=2&type=section&id=Harbour%20City) Harbour City's overall revenue and operating profit, including hotels, remained largely flat; the mall maintained its market-leading position by introducing several top brands' first Hong Kong stores and expanding flagship stores, achieving a 93% occupancy rate, while the office occupancy rate remained at 90% but faced rental pressure due to market competition - **Overall Performance**: Revenue and operating profit changed by less than **1%**[9](index=9&type=chunk) - **Mall Leasing**: Attracted brands like Louis Vuitton (expansion), Canali, Urban Revivo, and Bacha Coffee to open their first Hong Kong stores or concept stores[10](index=10&type=chunk) - **Occupancy Rate**: Mall at **93%**, office at **90%**[11](index=11&type=chunk) [Times Square](index=3&type=section&id=Times%20Square) Times Square's overall revenue decreased by 15% and operating profit by 19%; to address challenges, the mall actively updated its tenant mix, introducing Louis Vuitton, expanding LOEWE, and opening Cristiano Ronaldo's first global CR7® flagship store, boosting its occupancy rate to 96%, while the office occupancy rate remained at 90% but faced rental pressure from new supply Times Square Performance Changes | Indicator | Year-on-Year Change | | :--- | :--- | | Overall Revenue | -15% | | Operating Profit | -19% | - **Mall Leasing**: Introduced Louis Vuitton and Cristiano Ronaldo's first global CR7® store, strengthening the luxury brand lineup[13](index=13&type=chunk) - **Occupancy Rate**: Mall increased to **96%**, office maintained at **90%**[14](index=14&type=chunk) [Outlook](index=3&type=section&id=Outlook) Despite macroeconomic challenges, the Group maintains cautious optimism for the Hong Kong market, anticipating that capital inflows into Hong Kong stocks, the opening of Kai Tak Sports Park, and major events will boost the economy and consumer sentiment; the Group will uphold proactive management strategies and a low leverage ratio to navigate adversities and seize opportunities - **Positive Factors**: Hong Kong stocks regaining upward momentum, the opening of Kai Tak Sports Park, and major events are expected to enhance Hong Kong's attractiveness[15](index=15&type=chunk) - **Group Strategy**: Maintain proactive management and a low leverage ratio, rigorously screen capital investments, and utilize robust cash flow to seize future opportunities[15](index=15&type=chunk) [Financial Review](index=4&type=section&id=Financial%20Review) This section provides a detailed review of the Group's interim financial results, liquidity, financial resources, capital commitments, and human resources [Interim Results Review](index=4&type=section&id=Interim%20Results%20Review) The Group's total revenue slightly decreased by 1% to HKD 6.407 billion, and operating profit fell by 5% to HKD 4.684 billion, primarily due to a decline in investment property segment revenue, while hotel business revenue and profit both grew; despite an expanded revaluation loss on investment properties leading to a HKD 2.406 billion loss attributable to shareholders, underlying net profit remained stable at HKD 3.119 billion after excluding non-cash items Revenue and Operating Profit by Business Segment (HKD million) | Business Segment | Revenue (2025) | Revenue (2024) | Operating Profit (2025) | Operating Profit (2024) | | :--- | :--- | :--- | :--- | :--- | | Investment Properties | 5,371 | 5,542 | 4,528 | 4,718 | | Hotels | 766 | 748 | 47 | 24 | | Property Development | 58 | 8 | (1) | 74 | | Investments | 143 | 140 | 143 | 140 | | **Group Total** | **6,407** | **6,501** | **4,684** | **4,915** | - **Investment Property Revaluation**: Generated a **2%** revaluation loss totaling **HKD 5.15 billion**, resulting in an unrealized revaluation loss attributable to shareholders of **HKD 5.118 billion**[18](index=18&type=chunk) - **Finance Costs**: Effective annual borrowing interest rate decreased from **5.7%** to **4.4%**, primarily due to a decline in HIBOR[20](index=20&type=chunk) [Liquidity, Financial Resources, and Capital Commitments](index=5&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Commitments) The Group's financial position is robust, with shareholders' equity at HKD 185.2 billion and total assets at HKD 234.2 billion as of period-end, 94% of which are in Hong Kong; net debt further decreased to HKD 33.3 billion, and the net debt to total equity ratio fell to 17.6%, with ample credit facilities and liquid investment portfolios, and future capital commitments primarily for Hong Kong investment properties and mainland development properties Key Financial Position Indicators (As of June 30, 2025) | Indicator | Amount/Ratio | Compared to December 31, 2024 | | :--- | :--- | :--- | | Shareholders' Equity | HKD 185.2 billion | Decreased by HKD 2.6 billion | | Total Assets | HKD 234.2 billion | Decreased by HKD 3.9 billion | | Net Debt | HKD 33.3 billion | Decreased by HKD 0.9 billion | | Net Debt to Total Equity Ratio | 17.6% | 17.8% | - **Asset Composition**: Investment property assets accounted for **93%** of operating assets, totaling **HKD 217.2 billion**[25](index=25&type=chunk) - **Credit Facilities**: Total available credit facilities and issued debt securities amounted to **HKD 44.1 billion**, with **HKD 9.4 billion** unused[32](index=32&type=chunk) - **Capital Commitments**: Estimated principal planned expenditures for the coming years are **HKD 936 million**, of which **HKD 240 million** has been committed[35](index=35&type=chunk) [Human Resources](index=8&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed approximately 2,900 staff, with remuneration policies determined by job responsibilities and market trends, including discretionary bonuses linked to individual and Group performance - **Number of Employees**: Approximately **2,900** staff[37](index=37&type=chunk) - **Remuneration Structure**: Fixed remuneration plus performance-linked variable bonuses[37](index=37&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated income statement, consolidated statement of comprehensive income, and consolidated statement of financial position [Consolidated Income Statement](index=9&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group recorded revenue of HKD 6.407 billion, a 1.4% year-on-year decrease; a HKD 5.15 billion decrease in fair value of investment properties resulted in a loss before tax of HKD 1.847 billion, with the ultimate loss attributable to company shareholders being HKD 2.406 billion Consolidated Income Statement Summary (HKD million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 6,407 | 6,501 | | Operating Profit | 4,684 | 4,915 | | Decrease in Fair Value of Investment Properties | (5,150) | (4,450) | | Loss Before Tax | (1,847) | (460) | | Loss Attributable to Company Shareholders | (2,406) | (1,052) | | Basic Loss Per Share | (HKD 0.79) | (HKD 0.35) | [Consolidated Statement of Comprehensive Income](index=10&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Loss for the period was HKD 2.475 billion, but positive impacts from fair value changes in equity investments, generating HKD 1.225 billion, and other foreign exchange differences, resulted in other comprehensive income of HKD 1.806 billion, narrowing the total comprehensive loss to HKD 669 million Consolidated Statement of Comprehensive Income Summary (HKD million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period | (2,475) | (1,067) | | Other Comprehensive Income for the Period | 1,806 | (1,123) | | Total Comprehensive Income for the Period | (669) | (2,190) | | Total Comprehensive Income Attributable to Company Shareholders | (777) | (2,052) | [Consolidated Statement of Financial Position](index=11&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 234.2 billion, total liabilities HKD 44.7 billion, and net assets HKD 189.5 billion, with investment properties as core assets valued at HKD 217.2 billion, and shareholders' equity at HKD 185.2 billion Consolidated Statement of Financial Position Summary (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets (primarily Investment Properties) | 231,084 | 234,808 | | Total Assets | 234,219 | 238,072 | | Total Liabilities | (44,728) | (46,088) | | Net Assets | 189,491 | 191,984 | | Shareholders' Equity | 185,229 | 187,820 | [Notes to Interim Financial Information](index=12&type=section&id=Notes%20to%20Interim%20Financial%20Information) This section provides detailed segment information and other key notes to the interim financial statements [Segment Information](index=13&type=section&id=Segment%20Information) The Group's business is divided into four segments: investment properties, property development, hotels, and investments, with investment properties being the core source of revenue and profit, contributing over 80% of revenue and the vast majority of operating profit; geographically, Hong Kong is the Group's primary focus, contributing over 94% of revenue and 96% of operating profit H1 2025 Revenue and Operating Profit by Business Segment (HKD million) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Investment Properties | 5,371 | 4,528 | | Property Development | 58 | (1) | | Hotels | 766 | 47 | | Investments | 143 | 143 | | **Group Total** | **6,407** | **4,684** | H1 2025 Revenue and Operating Profit by Geographical Region (HKD million) | Region | Revenue | Operating Profit | | :--- | :--- | :--- | | Hong Kong | 6,043 | 4,504 | | Outside Hong Kong | 364 | 180 | | **Group Total** | **6,407** | **4,684** | [Other Key Notes](index=16&type=section&id=Other%20Key%20Notes) This section provides further explanations of key financial statement items, noting that operating profit is stated after deducting staff costs of HKD 583 million and direct operating expenses for investment properties of HKD 817 million; total finance costs were HKD 853 million, including HKD 749 million in total interest expenses, and total income tax was HKD 628 million; the Board declared a first interim dividend of HKD 0.66 per share - **Composition of Finance Costs**: Total finance costs of **HKD 853 million** included interest expenses on bank and other borrowings of **HKD 749 million** and fair value losses on derivative financial instruments of **HKD 74 million**[54](index=54&type=chunk) - **Income Tax**: Income tax expense for the period was **HKD 628 million**, with Hong Kong profits tax provision at **HKD 595 million**[55](index=55&type=chunk) - **Trade Receivables**: The Group's credit period typically ranges from **0 to 60 days**, with the vast majority of trade receivables aged within **30 days**[60](index=60&type=chunk) Interim Dividend Declared | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interim Dividend Per Share | HKD 0.66 | HKD 0.64 | | Total Dividend | HKD 2.004 billion | HKD 1.943 billion | [Corporate Governance and Other Matters](index=21&type=section&id=Corporate%20Governance%20and%20Other%20Matters) This section outlines the Group's adherence to corporate governance principles, details on securities transactions, and key dates related to the interim dividend [Corporate Governance and Securities Transactions](index=21&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) During the reporting period, the Company complied with all applicable provisions of the Corporate Governance Code, with the sole exception of the Chairman and Chief Executive Officer roles being held by the same individual, which the Board believes is more effective for executing long-term strategies; neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - **Governance Code Compliance**: The Company complied with the Listing Rules' Corporate Governance Code, except for the Chairman and Chief Executive Officer roles being held by the same person[64](index=64&type=chunk) - **Securities Transactions**: No purchases, sales, or redemptions of the Company's listed securities occurred during the reporting period[65](index=65&type=chunk) [Interim Dividend Related Dates](index=21&type=section&id=Interim%20Dividend%20Related%20Dates) The Company announced the key timetable for interim dividend distribution, requiring shareholders to submit share transfer documents by 4:30 p.m. on August 27, 2025, with dividends to be paid on September 11 Interim Dividend Timetable | Event | Date | | :--- | :--- | | Ex-dividend Date | August 26, 2025 | | Record Date | August 27, 2025 | | Payment Date | September 11, 2025 |

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 九龍倉置業地產投資有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01997 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD 500 ...

Core Viewpoint - The China Securities Hong Kong 300 Real Estate Index has shown significant growth, with a year-to-date increase of 17.07% and a recent monthly rise of 1.92% [1] Group 1: Index Performance - The China Securities Hong Kong 300 Real Estate Index reported a value of 1044.32 points [1] - The index has increased by 10.68% over the past three months [1] - The index is based on a sample of securities classified according to the China Securities industry classification standards, reflecting the overall performance of different sectors in the Hong Kong market [1] Group 2: Index Holdings - The top ten weighted stocks in the index include: New World Development (14.53%), Beike-W (12.67%), Link REIT (12.16%), China Resources Land (11.15%), Cheung Kong Property (8.22%), China Overseas Land & Investment (6.34%), Wharf Real Estate Investment (4.86%), Henderson Land Development (4.35%), Longfor Group (2.99%), and China Resources Mixc Lifestyle (2.79%) [1] - The index's holdings are entirely composed of stocks listed on the Hong Kong Stock Exchange, with a 100% allocation [1] Group 3: Industry Composition - The industry composition of the index shows that real estate development accounts for 57.95%, real estate services for 21.50%, Real Estate Investment Trusts (REITs) for 13.05%, and real estate management for 7.50% [2] - The index sample is adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2] - Adjustments to the index sample occur in response to special events affecting sample companies, such as mergers or changes in industry classification [2]

Core Points - The China Securities Hong Kong 300 Real Estate Index (H300 Real Estate) has shown significant growth, with a 1.92% increase over the past month, 10.68% over the past three months, and 17.07% year-to-date [1] Group 1: Index Performance - The H300 Real Estate Index is currently at 1044.32 points [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 weighted stocks in the H300 Real Estate Index are: - Sun Hung Kai Properties (14.53%) - Beike-W (12.67%) - Link REIT (12.16%) - China Resources Land (11.15%) - Cheung Kong Property (8.22%) - China Overseas Land & Investment (6.34%) - Wharf Real Estate Investment (4.86%) - Henderson Land Development (4.35%) - Longfor Group (2.99%) - China Resources Mixc Lifestyle (2.79%) [1] - The index is fully composed of stocks listed on the Hong Kong Stock Exchange [1] Group 3: Sector Breakdown - The sector composition of the H300 Real Estate Index includes: - Real Estate Development: 57.95% - Real Estate Services: 21.50% - Real Estate Investment Trusts (REITs): 13.05% - Real Estate Management: 7.50% [2] Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Weight factors are generally fixed until the next scheduled adjustment, with temporary adjustments made in response to changes in the underlying index [2]