Financial Data and Key Metrics Changes - Third quarter Adjusted EBITDA was $575 million compared to $844 million in the prior period, reflecting lower ownership in three businesses following the partial sale of Anktrus and including $77 million of tax benefits [15] - Adjusted EFO for the quarter was $284 million, benefiting from lower current tax expense and reduced interest expense due to decreased corporate borrowings [15] Business Line Data and Key Metrics Changes - The industrial segment generated third quarter Adjusted EBITDA of $316 million compared to $500 million in the prior period, with a 17% increase in performance when including tax benefits [16] - The business services segment's Adjusted EBITDA was $188 million compared to $228 million last year, impacted by the sale of a partial interest in dealer software and technology services [17] - The infrastructure services segment generated Adjusted EBITDA of $104 million compared to $146 million during the same quarter last year, reflecting the sale of offshore oil services and a partial interest in work access services [18] Market Data and Key Metrics Changes - The broader global economy has remained resilient, with public markets at record highs and transaction activity increasing due to declining global interest rates [7][8] - The company has seen a significant increase in its consolidated market cap by nearly $1 billion following the announcement of a corporate structure simplification [5] Company Strategy and Development Direction - The company is focused on capital recycling, having generated over $2 billion in proceeds and repaid $1 billion of borrowings, while also investing $525 million in strategic growth acquisitions [4] - Plans to simplify corporate structure aim to improve trading liquidity and increase demand for shares from index investors [5] - The company is leveraging AI to enhance operational capabilities and drive value creation [6][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism heading into the fourth quarter, noting strong operational performance and a robust investment environment [7][45] - The company remains focused on organic growth and operational improvements rather than pursuing new concessions in the BRK business [24] Other Important Information - The company has a pro forma liquidity of approximately $2.9 billion at the corporate level, providing flexibility for growth and capital allocation [19] - A buyback program has been launched, allowing for the repurchase of an additional 8 million units and shares [19] Q&A Session Summary Question: Regarding BRK and potential IPO - Management confirmed that an IPO is one option for monetizing BRK, but the capital markets environment in Brazil remains challenging [22] Question: On La Trobe's regulatory issues - Management clarified that the issues are primarily disclosure-related and have not impacted the underlying fundamentals of the business [26] Question: On DexKo's performance outlook - Management indicated that DexKo is performing well, with signs of recovery in market demand, and expressed optimism for the coming year [46]

Core Insights - WuXi AppTec is strategically divesting non-core businesses to focus on its competitive CRDMO model, aiming to enhance operational efficiency and shareholder value [2][10][12] Financial Performance - In the first three quarters of 2025, the company reported a 22.5% year-on-year increase in revenue from continuing operations and a 43.4% increase in adjusted Non-IFRS net profit [3][4] - The total shareholder return plan for 2025 amounts to nearly 7 billion RMB, including regular dividends of approximately 2.83 billion RMB and special dividends of about 1.01 billion RMB [5][7] Strategic Divestitures - The sale of the ATU business was a pragmatic decision to eliminate losses and improve overall profitability, enhancing gross and net profit margins [13][14] - The divestiture of shares in WuXi XDC and clinical operations is part of a capital recycling strategy, providing funds to reinvest in the core CRDMO business [14][15][16] Operational Excellence - The company has significantly improved its operational efficiency, reducing the time required to ramp up new facilities from two years in 2017 to just two months in 2024 [20] - A proprietary digital management system optimizes production scheduling across multiple sites, enhancing asset utilization and minimizing errors [21][22] Future Outlook - WuXi AppTec is building a self-reinforcing business model that leverages operational excellence to ensure stable order flow and strong cash flow, which will be reinvested into the core CRDMO platform [23][24]

Core Viewpoint - A significant capital cycle is forming in Silicon Valley, involving major players like Nvidia, OpenAI, Oracle, and AMD, raising concerns about the sustainability of this capital game based on future revenue projections rather than actual demand [1] Group 1: Key Transactions - Nvidia invests in OpenAI, which subsequently purchases computing power from Oracle [1] - Oracle then buys chips from Nvidia, creating a closed loop of transactions among these companies [1] - OpenAI signs an agreement with AMD to purchase chips, acquiring a 10% stake in the company [1] - OpenAI also announces a similar agreement with Broadcom just before the video release [1] Group 2: Criticism and Concerns - Critics argue that these transactions resemble a capital performance based on imagined future revenues rather than genuine market demand [1] - The intricate relationships among Silicon Valley AI capital players may signal the beginning of a potential bubble [1]

Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties, alongside lower finance costs, partially offset by impairment provisions of HKD 4 billion on development properties [2] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion [2] - Underlying earnings per share rose by 0.5% to HKD 7.54, while reported earnings per share increased by 1.2% to HKD 6.65 [3] - The net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% [4][5] - Interest coverage improved to around six times compared to 4.6 times a year ago, with net finance costs dropping by 24% year-on-year [5] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [3] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio [3] - The hotel business recorded an operating profit of HKD 615 million, unchanged from FY 2024 [4] - The Group's total operating profit for FY 2025 was slightly down to about HKD 32.2 billion [4] Market Data and Key Metrics Changes - The Group's total land bank in Hong Kong was about 57.4 million square feet, with 37.7 million square feet completed and 19.7 million square feet under development [7] - Recognized property sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [9] - Contracted sales not yet recognized amounted to HKD 35.6 billion, with around HKD 30.1 billion expected to be recognized in FY 2026 [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [20] Company Strategy and Development Direction - The Group aims to maintain a stable base of recurring income and leverage its quality brand and products to drive sales [6] - The strategy includes a proactive leasing approach to strengthen competitive edge and cultivate long-term relationships with tenants [30] - New projects in Hong Kong include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, while in Shanghai, three ITC projects are under development [31][44] Management's Comments on Operating Environment and Future Outlook - The global economic environment is expected to remain volatile, but monetary easing and lower interest rates may favor economic growth [29] - In Hong Kong, the residential market shows signs of stabilization, with rising home rents and improved buyer confidence anticipated [29] - The Mainland economy is expected to maintain steady growth supported by proactive fiscal and monetary measures [29] - The Group remains confident in the long-term prospects of both the Mainland and Hong Kong markets [44] Other Important Information - The Group's ESG initiatives have been recognized, with an upgrade to AA in the MSGI ESG rating [27] - The Group has introduced innovative retail formats and family-friendly facilities in its malls to enhance shopper experience [15][16] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the market is nearing a bottom due to low interest rates and rising rents, which may lead renters to become buyers [50] - Upcoming launches may see more aggressive pricing, especially for projects like Koolen and Sky [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at HKD 30 billion, influenced by potential uncertainties in project approvals [54] Question: Expectations for government policy support - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [56] Question: Land banking appetite and focus - The Group is interested in acquiring residential land, particularly in prime locations, while also considering commercial investments [57] Question: Prioritization between new investments, debt repayment, and shareholder returns - The focus is currently on paying down debt and improving liquidity, with land acquisition prioritized when opportunities arise [62] Question: Dividend policy and share buyback considerations - The Group maintains a policy of paying 50% of underlying profit as dividends and does not plan to initiate share buybacks at this time [63] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [63] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy, and management is in talks with potential new tenants for vacant spaces [80][81]

Core Viewpoint - The performance of Swire Properties in 1H25 met market expectations, with a revenue increase of 20% year-on-year to HKD 8.72 billion, while the recurring net profit attributable to shareholders decreased by 4% to HKD 3.42 billion, but increased by 15% to HKD 4.42 billion when considering asset disposal gains [1][2] Financial Performance - Revenue for 1H25 rose by 20% to HKD 8.72 billion - Recurring net profit attributable to shareholders decreased by 4% to HKD 3.42 billion - Basic profit attributable to shareholders increased by 15% to HKD 4.42 billion, aligning with market expectations - Interim dividend declared at HKD 0.35 per share, a 3% increase year-on-year, corresponding to a current dividend yield of 1.66% [1] Operational Highlights - Retail sales in mainland shopping centers improved, with a 1% year-on-year increase in 1H25, compared to a decline of 7% in 1H24 - Notable retail sales growth in Shanghai Taikoo Hui (+14%) and Beijing Sanlitun Taikoo Li (+7%) - Rental income from mainland shopping centers increased by 2% to HKD 2.27 billion in 1H25 - Hong Kong office rental income decreased by 5% to HKD 2.46 billion, with an occupancy rate of 88% [1][2] Asset Disposal and Financial Strategy - The company recorded asset disposal gains of HKD 1 billion in 1H25, primarily from the Miami shopping center and adjacent land, with a total consideration of up to USD 760 million - The net debt ratio remained stable at 15.7% compared to the end of 2024 [2] Investment Plans - The company has a HKD 100 billion investment plan, with HKD 50 billion allocated to the mainland market, of which HKD 46 billion is already earmarked - Upcoming projects include the phased opening of Guangzhou Julong Bay Taikoo Li by the end of 2025, the opening of Sanya Taikoo Li in 2026, and the completion of Xi'an Taikoo Li in 2027 [2] Shareholder Returns and Financial Safety - The company reiterated its guidance for a mid-single-digit annual growth in dividends, supported by asset disposals and residential sales - The company has confirmed or planned asset disposals for the second half of the year, including the Miami site and the sale of the 43rd floor of the Eastern Island Center [2] Earnings Forecast and Valuation - Earnings forecasts remain largely unchanged, with expected recurring net profit for 2025 and 2026 projected to decrease by 5% and increase by 17% to HKD 6.17 billion and HKD 7.20 billion, respectively [2] Rating and Target Price - The company maintains an outperform rating with a target price of HKD 23.8 per share, implying a 30% target NAV discount and a 4.8% target dividend yield for 2025, indicating a 13% upside potential [3]

Financial Data and Key Metrics Changes - The company reported an underlying profit of HKD 4.4 billion, an increase of 15% year on year, primarily due to capital recycling of non-core assets in Miami [4] - Recurring underlying profit decreased by 4% to HKD 3.4 billion, largely due to softness in the Hong Kong office market, offset by resilient rental income from the retail portfolio and contributions from the Chinese Mainland [5][20] - The interim dividend per share was declared at HKD 0.35, a 3% increase from the previous year, marking nine consecutive years of sustainable dividend growth [5][23] - The valuation of the investment properties portfolio stood at HKD 169.4 billion, reflecting a 1% decrease from December 2024, primarily due to fair value losses in Hong Kong and the Chinese Mainland [24] Business Line Data and Key Metrics Changes - The Hong Kong office sector saw a 5% decline in attributable gross rental income, reflecting ongoing market headwinds and pressure from new supply, with overall occupancy at 91% [11][21] - The retail portfolio in Hong Kong maintained 100% occupancy, with a slight 2% decrease in attributable gross rental income year on year [12][22] - In the Chinese Mainland, retail rental income increased by 1% in renminbi terms, with a steady CAGR of 11% over the past decade, now contributing 42% of the company's attributable gross rental income [13][22] Market Data and Key Metrics Changes - The office market in Hong Kong remains challenging due to oversupply, but there are signs of a capital markets-led recovery, with increased inquiries, especially at Pacific Place [10][11] - Retail sales in the Chinese Mainland grew by 1% year on year, significantly ahead of 2019 levels, with high occupancy rates across the portfolio [15][16] - The hotel portfolio performance has improved, particularly in the Chinese Mainland, despite a slower recovery in Hong Kong [19] Company Strategy and Development Direction - The company is focused on active capital recycling and has committed 67% of its HKD 100 billion investment plan across core markets, with a strong pipeline of retail-led mixed-use projects [9][28] - The strategy includes maintaining a balanced portfolio with a focus on premium residential projects in Hong Kong, Shanghai, and Southeast Asia [10][17] - The company aims to enhance shareholder value through sustainable dividend growth and continuous investment in core markets [35][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite the uncertain operating environment, highlighting the strength of the balance sheet and quality of properties [35] - The retail business in the Chinese Mainland is expected to stabilize, with improved consumer sentiment anticipated [36] - The office sector is expected to remain subdued, but the company is focused on tenant retention and anticipates a recovery for premium office space in the medium term [37] Other Important Information - The company has achieved significant sustainability milestones, including being named number one globally in the Dow Jones Best in Class Wealth Index 2024 and reaching the top 1% in the S&P Global CSA score [29][30] - The company is committed to achieving net zero emissions by 2050 and has made substantial progress in reducing carbon emissions [30] Q&A Session Summary Question: Future capital recycling plans - Management confirmed ongoing efforts in capital recycling, including the divestment of non-core assets in Hong Kong and Miami [41][43] Question: Share buyback strategy - Management emphasized that share buybacks are part of a broader capital allocation strategy, prioritizing sustainable dividend growth [45][46] Question: Investment plan and project completions - Management indicated a focus on quality execution of projects under the HKD 100 billion investment plan, with ongoing evaluations for opportunities in Shenzhen and Hong Kong [49][51] Question: Tenant sales performance in Mainland China - Management noted strong retail sales performance in the Chinese Mainland, attributing it to effective management and continuous upgrades to shopping malls [56] Question: Hong Kong office inquiries - Management reported a 30% increase in inquiries, with interest coming from various sectors, including financial services and retail [62] Question: Upcoming new Mainland retail malls - Management highlighted strong interest from luxury brand partners for new retail centers, with positive developments expected in Sanya [71][72]

Financial Data and Key Metrics Changes - The company reported an underlying profit of HKD 4.4 billion, an increase of 15% year on year, primarily driven by capital recycling of non-core assets in Miami [4] - Recurring underlying profit decreased by 4% to HKD 3.4 billion, largely due to softness in the Hong Kong office market, offset by resilient rental income from the retail portfolio and contributions from the Chinese Mainland [5][18] - The interim dividend per share was declared at HKD 0.35, a 3% increase from the previous year, marking nine consecutive years of sustainable dividend growth [5][21] - The valuation of the investment properties portfolio stood at HKD 169.4 billion, reflecting a 1% decrease from December 2024, primarily due to fair value losses from office properties in Hong Kong and the Chinese Mainland [22] Business Line Data and Key Metrics Changes - The Hong Kong office sector experienced a 5% decline in attributable gross rental income, with overall occupancy at 91% across the office portfolio [10][19] - The retail portfolio in Hong Kong maintained 100% occupancy, with a slight 2% decrease in attributable gross rental income year on year [11][20] - In the Chinese Mainland, retail rental income increased by 1% in renminbi terms, with a steady CAGR of 11% over the past decade [12][20] - The hotel portfolio showed steady performance, with occupancy and rates improving in the Chinese Mainland [17] Market Data and Key Metrics Changes - The office market in Hong Kong remains challenging due to oversupply, but there are signs of a capital markets-led recovery [9] - Retail sales in the Chinese Mainland grew by 1% year on year, significantly ahead of 2019 levels, with high occupancy rates across the portfolio [14] - The company anticipates a stabilization in the retail market in the Chinese Mainland as consumer sentiment improves [33] Company Strategy and Development Direction - The company is committed to a HKD 100 billion investment plan, with 67% already committed, focusing on retail-led mixed-use projects in Tier one and emerging Tier one cities in the Chinese Mainland [8] - The strategy includes active capital recycling and continuous investment in core markets to deliver sustainable dividend growth [32] - The company aims to maintain a balanced portfolio with a focus on premium residential projects in Hong Kong, Shanghai, and Southeast Asia [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite the challenging operating environment, supported by a strong balance sheet and quality properties [32] - The outlook for the Hong Kong office sector remains subdued, but there is an increase in inquiries, particularly at Pacific Place [34] - The residential market sentiment in Hong Kong is gradually improving, supported by policy measures [34] Other Important Information - The company has made significant progress in sustainability, achieving top rankings in global sustainability indices and committing to net zero emissions by 2050 [27][28] - The company has a robust liquidity position, with cash on hand increasing to RMB 24.3 billion and a stable gearing ratio of 15.7% [25][24] Q&A Session Summary Question: Future capital recycling plans - Management confirmed ongoing efforts in capital recycling, including the divestment of non-core assets in Hong Kong and Miami [41][42] Question: Share buyback program considerations - Management emphasized that share buybacks are part of a broader capital allocation strategy, prioritizing sustainable dividend growth [43][44] Question: Investment plan and project completions - Management indicated a focus on execution quality for the HKD 100 billion investment plan, with potential for accelerated acquisitions if opportunities arise [49][50] Question: Tenant sales performance in Mainland China - Management noted strong retail sales performance in the Chinese Mainland, attributing it to effective management and continuous upgrades to shopping malls [54] Question: Office inquiries and cap rates - Management reported a 30% increase in inquiries, with interest from various sectors, and explained the rationale behind the reduction in cap rates for certain office properties [60][63] Question: Asset held for disposal and Miami redevelopment - Management clarified that the asset held for disposal relates to the 40 Third Floor of 1 Island East, and they are evaluating options for the Mandarin Oriental site in Miami [67][68]

2025 INTERIM RESULTS | ANALYSTS BRIEFING 7TH AUGUST 2025 DISCLAIMER This presentation has been prepared by Swire Properties Limited (the "Company", together with its subsidiaries, the "Group") solely for information purposes and the information contained herein 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 correctness of the information or opinions presented h ...

Group 1 - The event highlighted the release of the "Guan Valley 2025" Gazelle Selected Enterprises list, showcasing over 100 high-growth technology companies and attracting more than 30 investment and financial institutions [1] - The "Guan Valley Gazelle" enterprises are characterized as high-potential companies with strong technological breakthroughs and market expansion capabilities, forming a vital part of the economic landscape in the Guan Valley [1] - The "Guan Valley Innovation Development Research Institute" released a list of 100 selected gazelle enterprises, while the "Guan Valley Financial Holdings Group" announced 20 potential star enterprises [1][2] Group 2 - Ten listed companies reached financing cooperation intentions with financial investment institutions, and five companies conducted financing roadshows during the event [2] - The average proportion of R&D personnel in the selected gazelle enterprises exceeds 50%, with each company having raised over 6 million yuan in equity financing over the past three years [2] - The current national capital market reforms aim to create a closed-loop innovation ecosystem, enhancing growth opportunities for hard-tech enterprises and guiding social capital towards early-stage, high-risk core technology R&D [2] Group 3 - The Guan Valley has established a service system for discovering, selecting, and precisely nurturing gazelle enterprises, having recognized and nurtured 1,862 gazelle enterprises, including 26 listed companies and 8 unicorns [3] - The focus will be on addressing the growth pain points of enterprises and further integrating policies, funding, and service resources to enhance the precision, professionalism, and internationalization of the nurturing work [3]

Core Viewpoint - The Guangdong merger and acquisition (M&A) market is experiencing significant growth and activity, driven by new regulations and policies that enhance capital circulation and support for companies engaging in M&A transactions [1][2][3]. Group 1: M&A Activity and Achievements - Since the introduction of the "M&A Six Guidelines," Guangdong has seen 227 new M&A transactions disclosed by listed companies, totaling 78 billion yuan [1]. - Guangdong leads the nation with over 20 major asset restructuring transactions completed, including significant cases like the first 10 billion-level "A acquiring H" and cross-industry transformation [2]. - TCL Technology has successfully executed two major acquisitions worth over 10 billion yuan within six months, enhancing its production capacity and technological capabilities [2]. - Songfa Co. has transitioned from traditional ceramics to high-end ship manufacturing through a major asset swap and acquisition of 100% equity in Hengli Heavy Industry, resulting in improved operational metrics [2]. - Hanlan Environment's acquisition of Yuefeng Environmental has increased its waste incineration capacity from 45,050 tons/day to 97,590 tons/day, marking a growth of approximately 117% [2]. Group 2: Policy and Regulatory Support - Guangdong has issued measures to enhance the capital market, encouraging local governments to support M&A activities, particularly for technology and traditional industries [3]. - The establishment of a specialized working mechanism by the Guangdong Securities Regulatory Bureau aims to provide tailored support for listed companies' M&A progress and challenges [3]. - A comprehensive service platform, the "Guangdong Capital Market M&A Alliance," has been formed to facilitate collaboration among various stakeholders, including government departments and financial institutions [4]. Group 3: Market Environment and Future Outlook - Companies in the Guangdong-Hong Kong-Macao Greater Bay Area are increasingly pursuing overseas acquisitions to mitigate risks and expand their global presence [5]. - The region boasts a strong foundation of quality listed companies with deep industry knowledge, enabling effective use of M&A tools for industry expansion [5]. - Guangdong's government-led funds and a robust venture capital industry provide substantial support for companies engaging in M&A activities [6]. - Future initiatives will focus on aligning with national policies to enhance the quality of listed companies and accelerate the modernization of Guangdong's industrial system [6].