Core Insights - The luxury residential market in Hong Kong continues to perform well, with over 100 transactions of properties priced above 50 million HKD recorded in the fourth quarter to date [1][3] - The total number of transactions has increased by approximately 12% compared to the third quarter, surpassing the second quarter's figures and setting a new high for the past four quarters [1][3] - The market is expected to challenge the record of 140 transactions in the fourth quarter of 2024 [1] Transaction Breakdown - Among the 103 transactions above 50 million HKD, the Kai Tak area recorded the highest number with 37 transactions, accounting for about 35.9% of the total [3] - The second highest area was Mid-Levels West with 28 transactions, representing approximately 27.2% [3] - Other areas included North Point with 8 transactions, Ho Man Tin and Ap Lei Chau with 7 and 6 transactions respectively, and Mid-Levels Kowloon with 4 transactions [3] Notable Developments - The top-selling new development in the fourth quarter was Kai Tak's The Sky, Phase 2, with 18 transactions [3] - The second place was taken by Mid-Levels West's The Peak, with a total of 16 transactions [3] - The third was Kai Tak's The Residences, which recorded 11 transactions [3] Highest Transaction Values - The highest transaction recorded was for a top-floor connected mansion in Mid-Levels Kowloon, sold for approximately 580 million HKD [3] - The second highest was a top-floor triplex unit in Jardine's Lookout, sold for about 420 million HKD [3] - Additionally, two other transactions exceeded 300 million HKD, with prices of approximately 352 million HKD and 338 million HKD for properties in The Peak and Kowloon Tong respectively [3]

Core Viewpoint - The company remains optimistic about the long-term economic outlook for Hong Kong and mainland China, despite facing significant short-term challenges in the overall economy and real estate market [1][5]. Financial Performance - In the first half of 2025, the company reported a consolidated revenue of HKD 99.54 billion, a 65% year-on-year increase, while net profit decreased by 22% [1][2]. - The property sales revenue surged 176% to HKD 64.2 billion, but rental income from properties and hotels declined by 6% and 3%, respectively [1][9]. - The basic earnings per share fell to HKD 0.42, down 22% from HKD 0.54 in the same period last year [5]. Mainland Operations - The company’s mainland property division recorded a consolidated revenue of HKD 31.43 billion, down from HKD 39.87 billion year-on-year, with a consolidated profit of HKD 16.95 billion, also lower than the previous year's HKD 21.03 billion [5][6]. - The decline in revenue was attributed to a decrease in confirmed sales of development properties, with a significant drop in revenue from development properties confirmed sales [5][6]. Hong Kong Operations - In contrast, the company’s Hong Kong property division achieved a consolidated revenue of HKD 68.11 billion, a substantial increase from HKD 20.52 billion year-on-year, with a consolidated profit of HKD 9.98 billion, up from HKD 6.17 billion [11][12]. - The growth was primarily driven by increased sales confirmations from development properties, which reached HKD 62.46 billion, compared to HKD 14.41 billion in the previous year [12][13]. Market Challenges - The company faces ongoing challenges in the commercial property market, with a 5% decline in rental income due to economic uncertainties and oversupply in the office market [10][11]. - The hotel business also saw a decline in revenue, with a reported income of HKD 10.12 billion, down from HKD 10.50 billion year-on-year [11]. Future Outlook - The company plans to gradually release remaining units from four projects based on market conditions, while also preparing to convert a warehouse into residential development [16]. - Analysts maintain a positive outlook, with expectations for recovery in pre-sales for the Shanghai Jinling project, which is crucial for the company's future performance [16].