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].

Group 1 - The performance of US stocks has lagged behind other major markets in 2023, with the Dow Jones up 3.64%, Nasdaq up 5.48%, and S&P 500 up 5.50%, while the KOSPI index surged 28.04% [1] - The MSCI Emerging Markets Index rose nearly 14% in the first half of the year, marking its best performance since 2017, indicating a shift of funds from the US to Europe and China [1] - The US dollar index experienced its largest decline in over 50 years, dropping more than 10% in the first half of the year, which has negatively impacted the performance of US stocks [1] Group 2 - The IMF has downgraded the global GDP growth forecast for 2025 to 2.8%, with the US GDP growth revised down from 2.7% to 1.8% and the Eurozone GDP growth from 1% to 0.8% [2] - The proposed "Beautiful Act" primarily extends existing tax cuts, which may have limited economic stimulus effects, while increasing long-term debt supply pressure [2] - The trade policies of the US are expected to slow global economic growth and reignite inflation, with a 40% chance of recession in the US in the second half of the year [7] Group 3 - Analysts suggest that the current US trade policies are undermining the capital circulation system, leading to a decline in confidence in US assets and a shift towards lower-valued markets in Europe and China [3][4] - The S&P 500 index's forward P/E ratio has risen above 23, indicating that US stocks may be overvalued compared to earnings expectations, which could deter investor interest [5] - The upcoming earnings season for US stocks is expected to be challenging, with potential profit margin pressures due to increased tariffs [7] Group 4 - The market is experiencing a shift towards regionalization, with central banks diversifying their foreign exchange reserves and reassessing traditional trade and supply chain structures [3] - Non-US assets have received strong liquidity support in the first half of the year, with international funds favoring markets in China and Europe [10] - The outlook for the Chinese equity market remains positive, with expectations of revenue and profit growth for the CSI 300 index in 2025 and 2026 [10]

Core Viewpoint - The major shareholder of Amer Sports, FountainVest Partners, is planning to sell half of its stake in the company, raising concerns about the sustainability of growth for the high-end outdoor brand Arc'teryx, especially after the company's stock price has reached new highs [2][6]. Company Overview - Amer Sports, known for its high-end brands like Arc'teryx, Salomon, and Wilson, has seen significant growth in the Chinese outdoor sports market, although it remains less known in China compared to other brands [3]. - The acquisition of Amer Sports in 2018 by a consortium led by Anta Sports and FountainVest Partners was a landmark case of Chinese capital globalization, with a total purchase price of €4.6 billion [4][5]. Financial Performance - Amer Sports reported a revenue of $5.183 billion in 2024, a year-on-year increase of 18%, with outdoor functional apparel, particularly Arc'teryx, contributing significantly to this growth [5][11]. - The company's market capitalization has surged from approximately €4.6 billion at the time of acquisition to over $20 billion by June 2025, reflecting nearly a fourfold increase [6]. Market Dynamics - The high-end consumer market is undergoing structural changes post-pandemic, with consumers becoming more critical of product quality and value for money, leading to increased scrutiny of premium brands like Arc'teryx [7][10]. - Complaints regarding product quality have risen, with numerous reports of durability issues, which could impact brand reputation and consumer trust [9]. Competitive Landscape - The competitive environment in the high-end outdoor apparel sector is intensifying, with brands like Lululemon and Descente ramping up marketing efforts to capture market share [12]. - Amer Sports is initiating a multi-faceted transformation, including the launch of a footwear division and targeting the female market to drive future growth [13][14].

Financial Performance - The company reported a profit of HK$7,121 million, a 74% increase compared to HK$4,096 million in FY2020[9, 192] - Recurring profit increased by 1% to HK$7,152 million in FY2021 from HK$7,089 million in FY2020[9, 113] - Underlying profit decreased by 25% to HK$9,541 million in FY2021, compared to HK$12,679 million in FY2020[9, 113] - The company aims for mid-single-digit annual dividend growth[9, 11] - The full year dividend per share (DPS) for FY2021 was HK$0.95, a 4.4% increase compared to HK$0.91 in FY2020[9, 123, 192] Portfolio Performance - The Hong Kong office portfolio maintained a high overall occupancy of 97%[9] - The Hong Kong retail portfolio is almost fully let[9] - Chinese Mainland retail portfolio experienced a 30% attributable retail sales growth[9] - Chinese Mainland overall portfolio contributed 37% attributable gross rental income in FY2021[46, 47] - Taikoo Li Qiantan achieved approximately 90% occupancy since opening in September 2021[49, 66, 256] Strategic Investments and Capital Management - The company plans to make over HK$100 billion in strategic investments over the next 10 years[9, 11, 13, 188] - The company has sales proceeds of over HK$6.3 billion from EDEN, Singapore and Reach & Rise, Miami[9] - The company's gearing ratio increased to 3.5% in Dec 2021 from 2.3% in Dec 2020[128, 192]

Financial Data and Key Metrics Changes - The company reported a recurring underlying profit of HKD 6.5 billion, a decrease of 11% year on year, primarily due to higher net finance charges and reduced office rental income in Hong Kong [4][23] - Attributable gross rental income decreased slightly by 2% year on year [4][24] - The full year dividend per share was declared at HKD 1.10, an increase of 5% [5][25] - The valuation of investment properties at the end of 2024 was RMB 271.5 billion, a 3% decrease compared to the end of 2023 [27][28] Business Line Data and Key Metrics Changes - In Hong Kong, gross rental income for the office sector decreased by 4% year on year, while retail gross rental income decreased by 3% [24][12] - The Chinese Mainland retail portfolio achieved a 2% increase in gross rental income in Hong Kong dollar terms and a 4% increase in renminbi terms [24][13] - The office portfolio in the Chinese Mainland had a steady performance with a 1% increase in gross rental income in renminbi terms [17][25] Market Data and Key Metrics Changes - The Hong Kong office market remains soft due to oversupply, with overall occupancy at 93% [10][11] - Retail sales growth in the Chinese Mainland stabilized in Q4 2024, with an overall decline of 7% in retail sales, except for Taiguli Tian Tan in Shanghai, which reported positive sales growth [14][15] - In Miami, retail sales increased by 3% year on year, with occupancy at 100% [18] Company Strategy and Development Direction - The company aims to achieve long-term growth targets through an active capital recycling strategy and a diverse development pipeline [6][7] - The company plans to invest HKD 100 billion across three core markets, with 67% already committed [7][9] - The strategy includes maintaining a balanced portfolio mix between retail and office sectors to support sustainable annual dividend growth [7][36] Management Comments on Operating Environment and Future Outlook - Management described the outlook as positive despite market headwinds, emphasizing the resilience of the business [36][39] - The company anticipates a gradual recovery in the premium office sector and expects improved consumer sentiment in the Chinese Mainland retail market [38][39] - Management remains cautious about the Hong Kong office market due to high vacancy rates and new supply pressures [58][59] Other Important Information - The company achieved the number one ranking in the global Dow Jones Best in Class World Index, reflecting its commitment to sustainability [5][31] - The green financing ratio increased to approximately 70%, exceeding the 2025 target of 50% [30] Q&A Session Summary Question: About the buyback program and Mainland China retail outlook - Management confirmed the buyback program will be assessed closer to May, considering market conditions and liquidity [44] - Retail sales in the Chinese Mainland showed mild positive growth in Q1 2025, with expectations for positive rental reversions over time [46] Question: Confidence in luxury retailers' commitments and remuneration structure - Management expressed confidence in luxury brands' commitment to new developments, emphasizing strong partnerships [51] - There are no current plans to change the remuneration structure, maintaining a balance between financial and operational incentives [52] Question: Capital allocation and Hong Kong office market outlook - Management highlighted significant cash flow from residential projects expected in 2025 and 2026, supporting capital allocation [56] - The outlook for the Hong Kong office market remains under pressure, with expectations for stronger demand in 2026 and 2027 [59] Question: Payout ratio and capital recycling - The cumulative payout ratio since listing is 50%, with a commitment to maintain this ratio despite current high levels [65] - Management is actively pursuing capital recycling opportunities to support future investments [67] Question: Asset held for sale and CapEx rationale - The transfer of investment properties to assets held for sale relates to Miami and a project in Hong Kong, with active divestment opportunities being explored [75] - The long-term gearing target is around 20%, with confidence in maintaining credit ratings while managing capital commitments [76]