Financial Data and Key Metrics Changes - Group operating earnings before fair value movements decreased by 8% year on year to HKD 5.2 billion [7] - Total earnings decreased by 5% to HKD 5.6 billion [7] - EBITDAF was down by 5% to HKD 12.4 billion compared to the same period last year [9] - Capital investments of over CHF 8 billion were lower than last year [10] - Total interim dividends declared for the first half of 2025 remained at $1.26 per share, same as last year [10] Business Line Data and Key Metrics Changes - Hong Kong business maintained solid core earnings with capital expenditures standing at HKD 4.5 billion, primarily for growth initiatives [12] - Mainland operations saw a 15% reduction in earnings due to market challenges [13] - Energy Australia faced intense retail competition leading to margin compression and a decrease in customer accounts [16] Market Data and Key Metrics Changes - Competitive market conditions in Australia resulted in a reduction in customer numbers [7] - Lower tariffs in the Mainland impacted operating earnings from the nuclear portfolio [14] - The energy transition in the Mainland is expected to add significant renewable capacity, with over 270 gigawatts added in the first half [26] Company Strategy and Development Direction - The company is focused on investing in foundational growth in its core Hong Kong regulated business while targeting opportunities in fast-growing energy transition markets [24] - The strategy includes a GBP 52.9 billion five-year development plan to deliver reliable power and advance decarbonization efforts [25] - The company aims to maintain discipline in investment decisions, ensuring projects meet return thresholds [47] Management's Comments on Operating Environment and Future Outlook - Management acknowledged specific market headwinds in the Mainland and Australia affecting performance but emphasized strong fundamentals [5] - The company is closely monitoring the introduction of Policy Document 136 and will evaluate its renewable portfolio to maximize value [15] - Management expects to continue improving margins in Australia through cost optimization and recontracting efforts [44] Other Important Information - Free cash flow generation was CHF 7.1 billion, down CHF 0.9 billion compared to the first half of 2024 [21] - The company has a strong liquidity position of close to CHF 30 billion despite an increase in net debt [22] - The company is actively exploring renewable energy opportunities in Taiwan and Vietnam while remaining disciplined in capital commitments [33] Q&A Session Summary Question: Outlook for Australian business margins - Management expects improved margins in the second half due to government price increases and recontracting opportunities [44] Question: Expected returns for new renewable projects in China - Management maintains a target of achieving 6 gigawatts by 2029 but will be selective in project identification due to market uncertainties [46] Question: Changes in overseas business strategy - Management noted weaker performance in overseas markets but emphasized ongoing investments in reliability and flexibility of generation assets [48] Question: Funding for renewable projects in Australia - Management confirmed that Energy Australia has strong cash flow generation and plans to fund small CapEx through its balance sheet while larger projects will be project financed [61] Question: Dividend policy and potential increases - Management reiterated a commitment to a reliable dividend policy, with any increases dependent on sustainable growth in underlying business performance [68]

Financial Data and Key Metrics Changes - Group operating earnings before fair value movements decreased by 8% year on year to HKD 5.2 billion [7] - Total earnings decreased by 5% to HKD 5.6 billion [7] - EBITDAF was down by 5% to HKD 12.4 billion compared to the same period last year [9] - Capital investments of over CHF 8 billion were lower than last year [10] - Total dividends per share declared for the first half of 2025 remained at $1.26, the same as last year [10] Business Line Data and Key Metrics Changes - Hong Kong business maintained solid core earnings with capital expenditures standing at HKD 4.5 billion, primarily for growth initiatives [13] - Mainland operations saw a 15% reduction in earnings due to market challenges [14] - Energy Australia faced intense retail competition leading to margin compression and a decrease in customer accounts, resulting in operating earnings of HKD 167 million [17] Market Data and Key Metrics Changes - Competitive market conditions in Australia resulted in a reduction in customer numbers [7] - Lower tariffs in the Mainland impacted operating earnings from the nuclear portfolio [15] - The Mainland's renewable earnings were lower due to reduced wind resources and higher curtailment [15] Company Strategy and Development Direction - The company is focused on investing in foundational growth in its core Hong Kong regulated business while targeting opportunities in fast-growing energy transition markets [26] - The five-year development plan of GBP 52.9 billion aims to deliver safe and reliable power while advancing decarbonization efforts [28] - The company is pursuing a disciplined capital allocation strategy based on risk-return principles [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged specific market headwinds in the Mainland and Australia but emphasized the strength of the core business [5] - The company is committed to operational excellence and building energy infrastructure to drive decarbonization [6] - Management expressed confidence in improving margins in Australia through recontracting and cost optimization initiatives [46] Other Important Information - The company has a strong balance sheet and a recently affirmed A stable rating by S&P [6] - Free cash flow generation was CHF 7.1 billion, down CHF 0.9 billion compared to the first half of 2024 [23] - The company is actively evaluating renewable energy opportunities in Taiwan and Vietnam [35] Q&A Session All Questions and Answers Question: Regarding the Australian business and forward prices - Management indicated that while forward prices may trend downward, there are opportunities for improved margins in the second half due to government price increases and recontracting efforts [46] Question: About the China business and operational renewable capacity targets - Management maintained the target of raising operational renewable capacity in China to 6 gigawatts by 2029 but emphasized a selective approach due to market uncertainties [49] Question: Overall overseas business strategy and performance - Management acknowledged weaker performance in the first half due to headwinds in China and Australia but highlighted strong generation business performance [50] Question: On Energy Australia's funding and CapEx - Management confirmed that Energy Australia has strong cash flow generation and plans to fund small CapEx through its balance sheet while larger projects will be project financed [63] Question: About the clean energy transmission system and CapEx for imports - Management stated that the clean energy transmission system is nearing completion, but significant CapEx will be required for future imports to meet energy targets [94] Question: On dividend policy and potential increases - Management reiterated a commitment to a reliable and consistent dividend policy, with any increases dependent on sustainable growth in the underlying business [96]

Core Viewpoint - Morgan Stanley reports that CLP Holdings (00002) has a mid-year net profit of HKD 5.6 billion, a 6% decrease from HKD 6 billion in the same period last year [1] Financial Performance - Excluding a fair value loss of HKD 35 million from EnergyAustralia, the operating profit stands at HKD 5.2 billion, reflecting an 8% year-on-year decline [1] - The interim dividend per share for CLP remains unchanged at HKD 1.26 [1] Regional Performance - Operating profit from CLP's Hong Kong business increased by 6% to HKD 4.6 billion year-on-year [1] - Operating profit from mainland China decreased by 12% to HKD 870 million, attributed to low electricity prices in Yangjiang and weaker wind resources leading to reduced renewable energy generation [1] Australian Operations - Operating profit from the Australian business fell by 73% to HKD 167 million, due to intense retail competition impacting profit margins, the end of coal compensation in 2024 leading to increased coal costs, and reduced generation from the Mount Piper and Yallourn coal-fired power plants due to outages [1]

Core Viewpoint - Morgan Stanley reported that CLP Holdings (00002) experienced a mid-year net profit of HKD 5.6 billion, a 6% decrease from HKD 6 billion in the same period last year [1] Financial Performance - Operating profit, excluding a fair value loss of HKD 35 million from EnergyAustralia, was HKD 5.2 billion, down 8% year-on-year [1] - The interim dividend per share for CLP remained stable at HKD 1.26, unchanged from the previous year [1] Regional Performance - CLP's operating profit in Hong Kong increased by 6% year-on-year to HKD 4.6 billion, while operating profit in mainland China decreased by 12% to HKD 870 million [1] - The decline in mainland China was attributed to lower electricity prices in Yangjiang and weaker wind resources leading to reduced renewable energy generation [1] Australia Operations - Operating profit from the Australian business fell by 73% to HKD 167 million [1] - Contributing factors included intense retail competition affecting profit margins, the end of coal compensation in 2024 leading to increased coal costs, and reduced generation due to outages at Mount Piper and Yallourn coal-fired power plants in New South Wales [1]

Group 1: Company Performance and Strategy - The CEO of CLP Holdings stated that the data center sector in Hong Kong is experiencing strong growth, aligning with the city's goal to become a technology hub, with 18 data centers expected to be operational from 2024 to 2028, of which 6 are already in operation [1] - The electricity demand from data centers increased by 6.7% in the first half of the year, accounting for over 6% of CLP's total electricity sales, indicating robust demand growth [1] - In mainland China, while electricity demand continues to grow, the pace has slowed compared to expectations, with sales growth estimated at 5% to 6% for the year [1] Group 2: Regulatory and Market Environment - A new electricity pricing mechanism in mainland China requires renewable energy projects to participate in market trading, which may have a limited short-term impact on CLP's existing assets but introduces uncertainty for future investment decisions [2] - The company plans to be more selective in investment decisions, focusing on regions with higher growth demand and electricity prices, while considering the potential for lower power supply constraints [2] Group 3: Market Conditions and Future Outlook - Global geopolitical uncertainties are impacting commodity prices, particularly international fuel prices, which have decreased from 46.3 HK cents to 43 HK cents since the beginning of the year [3] - CLP will closely monitor fuel price trends and adjust pricing mechanisms accordingly [3]

Financial Performance - Operating earnings before fair value movements decreased by 8% to HK$5,227 million compared to HK$5,683 million in 1H2024[20, 85] - Total earnings decreased by 5% to HK$5,624 million compared to HK$5,951 million in 1H2024[20, 85] - Interim dividend remained stable at HK$0.63 per share, with a total 1H2025 dividend of HK$1.26 per share and a dividend yield of 48%[20] - Capital investment reached HK$8,213 million, a 21% increase from HK$6,809 million in 1H2024[25] Business Unit Performance - Hong Kong energy and related activities saw a 6% increase in operating earnings, reaching HK$4,568 million[27] - Chinese Mainland operating earnings decreased by 12% to HK$870 million due to lower market prices and curtailments[27] - EnergyAustralia experienced a significant 73% decrease in operating earnings to HK$167 million due to retail margin compression and the end of coal price caps[27] - Apraava Energy's operating earnings decreased by 61% to HK$79 million, impacted by one-offs from the KMTL transmission asset[27] Financial Structure and Liquidity - Net debt increased to HK$624 billion, resulting in a net debt to total capital ratio of 350%[53] - The company maintains a strong liquidity position with HK$266 billion in undrawn bank facilities and HK$30 billion in bank balances[53] Strategic Growth Plan - CLP aims to achieve approximately 6GW of renewable energy capacity in the Chinese Mainland by 2029[70] - Apraava Energy targets approximately 8GW of non-carbon investments by 2029[72] - EnergyAustralia aims for approximately 16GW of flexible capacity by 2030[75] Hong Kong Market - Local electricity sales decreased by 17% due to high base effect from temperature in 1H24[31] - The company is supporting customers and communities with over HK$200 million from the CLP Community Energy Saving Fund[31]

Core Insights - The company reported a slight decline in total revenue for the first half of 2025, amounting to HKD 42.854 billion, a decrease of 2.8% year-on-year, primarily due to a drop in customer business revenue from EnergyAustralia [2] - Total profit for the period was HKD 5.624 billion, reflecting a year-on-year decline of 5.5% [2] - Operating profit before fair value changes was HKD 5.227 billion, down 8.0% year-on-year, mainly attributed to reduced contributions from businesses outside Hong Kong, particularly from EnergyAustralia and nuclear and renewable energy assets in mainland China, although strong performance in Hong Kong partially offset the decline [2]

Core Viewpoint - China Electric Power Holdings (00002.HK) announced that it will distribute the second interim dividend of HKD 0.63 per share on September 15, 2025 [1] Group 1 - The company will pay a second interim dividend of HKD 0.63 per share [1]

中电控股(00002)发布公告，该公司将于2025年9月15日派发第二期中期股息每股0.63港元。 ...

2025年上半年，市场环境多变，全球能源需求波动，地缘政治局势愈趋紧张。面对这些外部挑战，公司 致力为香港维持稳健可靠的能源供应，并为这座城市的长远发展作出投资;于中国内地、印度及澳洲， 公司在拓展可再生能源及灵活发电容量资产组合方面亦继续取得进展。 中电控股(00002)发布截至2025年6月30日止6个月业绩，集团收入428.54亿港元，同比减少2.79%;股东应 占盈利56.24亿港元，同比减少5.49%;每股盈利2.23港元;第二期中期股息每股0.63港元。 除上述发展外，公司亦积极推展以客为本的数码平台，包括支援香港不断扩展的电动车充电网络。公司 亦签订合作备忘录，为香港引入配备充电服务的重型电动吊臂货车。这些举措有助减少交通和建造业的 碳排放，与政府的宏观政策重点一致。 除了利用人工智能技术，透过智能管理系统实时监察及掌握电网情况以提升决策效率外，公司亦扩大无 人机在巡检方面的应用，以提升安全管理及营运效率，这亦是香港政府支持低空经济"监管沙盒"试点项 目的其中一项。 在公司扎根的香港，卓越的营运及高度可靠的电网为业务提供了坚实的支持。随着燃料价格回落，2025 年上半年平均净电价下调1.9%。鉴 ...