Core Viewpoint - UBS report indicates that the mid-year performance of Wharf Real Estate Investment Company met expectations, with basic earnings remaining flat year-on-year at HKD 3.1 billion, which is 4% lower than the bank's forecast [1] Financial Performance - Basic earnings for the first half of the year were HKD 3.1 billion, unchanged from the previous year [1] - Interim dividend per share is HKD 0.66, representing a 3% year-on-year increase, in line with expectations [1] Management Outlook - Management maintains a cautious stance on retail rental income, anticipating a potential negative shift in rental returns [1] - Expected rental adjustments for Harbour City are projected to show a low single-digit decline, a reversal from positive adjustments seen in the first half of the year [1] Future Plans - Management revealed plans for significant asset enhancement or complete reconstruction of the Marco Polo Hotel, with construction expected to start after 2025 [1] - If it is an asset enhancement initiative (AEI), the required capital expenditure is approximately HKD 2 billion, with a disruption period of only two years, expected to have limited financial impact [1] - In the case of a complete reconstruction, concerns arise regarding the impact on luxury tenants on Canton Road due to increased competition from high-end malls like K11 MUSEA in Tsim Sha Tsui [1] Rating and Target Price - UBS maintains a "Neutral" rating on Wharf Real Estate Investment Company with a target price of HKD 20 [1]

Market Overview - In July, Hong Kong's new property market remained active with over 2,000 transactions, representing a month-on-month increase of over 30% [2] - New World Development reported strong business momentum at the beginning of the new fiscal year, with excellent sales results from various projects in mainland China and Hong Kong, leading to steady cash flow [2] Mainland Business - The high-end residential project Tianhui Xi in Shanghai successfully delivered all 448 units, selling out after two rounds of sales [5] - In Guangzhou, the new landmark project Yaosheng New World Plaza is delivering residential, commercial, and Grade A office spaces, showcasing New World's strong delivery capabilities [5] - The K11 ECOAST in Shenzhen launched multiple summer activities and added nearly 20 new brands, enhancing tenant diversity and customer experience [5] Awards and Recognition - Shanghai K11 ELYSEA and Ningbo THEPARK by K11Select won multiple awards at the BETTER FUTURE Hong Kong Design Awards 2025 for their architectural excellence [6] - New World Development's sustainability efforts were recognized with awards for the Hangzhou New World City Art Center and the "2030+ Sustainable Development Vision" [6] Hong Kong Business - The luxury residential project DEEP WATER PAVILIA滶晨II in Hong Kong sold 82 out of 88 units in its first round, achieving a sales rate of 93% [8] - The new landmark luxury residential project 柏蔚森 in Kai Tak has sold over 600 units since its launch, generating over HKD 4.2 billion in sales [9] - The core cultural landmark luxury project STATE PAVILIA皇都 sold out all units in the "皇都维港珍藏大宅" series, with an average price of nearly HKD 40 million [9] Events and Promotions - New World Development hosted two major international events at K11 MUSEA during the summer, including the "CHIIKAWA DAYS" exhibition and the CR7® LIFE Museum, attracting significant visitor traffic [10]

Group 1 - New World Development Company Limited has reached a new bank financing and unified bank financing agreement covering approximately HKD 88.2 billion of existing unsecured financial debt [1] - The company's financial management strategy focuses on reducing liabilities and improving cash flow, while continuing to fulfill existing financial responsibilities [1] - The recovery of the real estate market in Hong Kong and mainland China, along with the growth in demand for high-end residential properties, has led to the successful launch of several "phenomenal" hot-selling projects [1] Group 2 - As of June 25, the company has achieved its contract sales target of HKD 26 billion for the fiscal year 2024/2025 [1] - In the mainland market, projects in Guangzhou and Shenyang have led sales, with Shenyang's project topping the residential sales chart in May [1] - In Hong Kong, the super luxury project "滶晨" has sold over 330 units at a maximum price of over HKD 538,000 per square meter, attracting both local and overseas buyers [2]