Financial Data and Key Metrics Changes - Revenue from leasing decreased by 1% year-on-year, primarily due to the depreciation of the renminbi, while operating profit increased by 1% and underlying profit improved by 3% [9][10] - The net gearing ratio decreased to 32.7%, lower than the previous year, aided by a scrip dividend arrangement and reduced capital expenditures [30][66] Business Line Data and Key Metrics Changes - Mainland rental revenue remained flat year-on-year, with retail revenue up by 1% while office revenue faced headwinds, down by 8% overall [11][20] - In Hong Kong, rental revenue decreased by 2%, an improvement from a 4% decline in the first half of the year [10][24] - New letting increased by 15% and renewals by 5%, indicating effective tenant management [17] Market Data and Key Metrics Changes - The retail sector in Mainland China showed resilience, with a 3% increase in the second half of the year, while the office market continues to face challenges due to oversupply [11][20] - Hong Kong's retail market is stabilizing, with a notable improvement from a -9% to -2% decline in 2025 [23][24] Company Strategy and Development Direction - The company is focusing on its V3 strategy, which aims to expand with minimal capital expenditure and faster project execution, leveraging existing resources and relationships [4][7][36] - The company plans to enhance its presence in key cities like Shanghai, Hangzhou, Wuxi, and Kunming, aiming for increased market share and community engagement [5][36] Management's Comments on Operating Environment and Future Outlook - Management noted a mix of structural and cyclical corrections in the Hong Kong and Mainland markets, with cautious optimism for recovery in retail sales, particularly in non-luxury segments [8][56] - The company anticipates continued challenges in the office market for the next 18-24 months due to high supply levels [21][22] Other Important Information - The company achieved record-high footfall and sales in Q4, driven by effective tenant management and promotional events [18][19] - The company is preparing for its 66th anniversary with a focus on consumer engagement and experiential marketing [55] Q&A Session Summary Question: CEO's succession and qualities sought in a new CEO - The current CEO expressed a personal goal to retire at 55, emphasizing the importance of family time and confirming that the board has been informed well in advance [45][47] - The company is actively searching for a successor, with no specific timeline announced yet [46][52] Question: Outlook for Mainland China retail and tenant sales - Management remains cautiously optimistic about tenant sales growth, noting strong performance in non-luxury segments and a record-breaking Q4 [53][56] - January sales figures are expected to be comparable to last year, with the Chinese New Year falling later this year, which may positively impact sales [59]

Financial Data and Key Metrics Changes - Revenue from core leasing business decreased by 1% due to depreciation of the renminbi, while operating profit increased by 1% and underlying profit improved by 3% compared to 2024 [8][9] - Overall proceeds from properties reached HKD 1.6 billion, the highest in the last eight years, with HKD 264 million booked in revenue [24][25] - Net gearing ratio decreased to 32.7%, lower than the previous year, aided by a scrip dividend arrangement and reduced CapEx [31][67] Business Line Data and Key Metrics Changes - Mainland rental revenue remained flat year-on-year, with retail revenue up by 1% and office revenue facing headwinds, down by 8% [10][19] - In Hong Kong, overall revenue decreased by 2%, with retail impacted by a single tenant's lease expiration [22][23] - New letting increased by 15% and renewal increased by 5%, indicating effective tenant management [15] Market Data and Key Metrics Changes - The mainland office market is expected to face challenges for another 18-24 months due to high supply and tenant bargaining power [20][21] - Hong Kong retail is seen as more structural, with a slower recovery expected compared to the cyclical nature of mainland retail [64][66] - Footfall and occupancy rates reached record highs, particularly in Q4, indicating a positive trend despite overall cautious outlook [57][59] Company Strategy and Development Direction - The company is focusing on its V3 strategy, which aims to expand with minimal capital expenditure and faster project execution [4][6] - Emphasis on enhancing existing properties and leveraging established teams and relationships to increase market share in key cities like Shanghai, Hangzhou, Wuxi, and Kunming [5][6] - The company plans to continue diversifying its retail offerings, focusing on non-luxury segments to capture growth opportunities [57][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing corrections in both Hong Kong and mainland markets, with a mix of structural and cyclical shifts [7] - There is cautious optimism for 2026, with expectations for tenant sales to improve, particularly in non-luxury segments [47][55] - The company is preparing for potential foreign investment returns to China, which could positively impact the market [22] Other Important Information - The company is committed to sustainability, achieving its 25/25 ESG goals and aiming for net-zero emissions by 2030 [35][36] - The company is planning significant expansions in key locations, with a projected RMB 1 billion investment for V3 projects [38][39] Q&A Session Summary Question: CEO succession plans and qualities sought in a new CEO - The current CEO plans to retire at 55, emphasizing personal goals and family time, with the board already informed a year in advance [48][50] - The board is actively seeking a successor, with no specific timeline announced yet [54] Question: Outlook for Mainland China retail in 2026 - Management remains cautiously optimistic, noting strong Q4 performance but still cautious about luxury brand recovery [55][56] - January sales are expected to be stable, with potential for good performance due to the timing of Chinese New Year [61] Question: Leasing strategy for 2026 and performance stabilization in Wuhan and Shenyang - The company plans to continue adding experiential, non-luxury spaces while monitoring luxury performance [76] - Stabilization in underperforming markets is anticipated by 2026 or 2027, with ongoing repositioning efforts [76] Question: Dividend considerations with lower gearing and CapEx - Future dividend increases will depend on earnings recovery, with no specific scenarios outlined yet [76]