Financial Performance Highlights - The company achieved a revenue increase of 11% to HKD 7.6 billion, with operating EBITDA rising by 43% to HKD 1.7 billion, marking a return to profitability with an underlying profit of HKD 105 million compared to a loss of HKD 176 million last year [3][6][7] - Net cash from operations increased by 69% to HKD 839 million, reflecting improved earnings quality and sustainability [3][9] - The balance sheet remains solid with net external debt stable at 23% of total assets and an A credit rating from both JCR and R&I [3][10] Business Line Performance - The hotel division saw a 13% revenue increase, driven by strong performances in New York, London, Istanbul, and record-breaking results in Tokyo [4][7] - The commercial properties division's revenue increased by 5% to HKD 929 million, supported by high occupancy rates at The Repulse Bay and improved tenant mix at the Peak Tower [7] - Revenue from the Peak Tram, Retail, and Others division rose by 6% to HKD 1 billion, benefiting from increased patronage and successful brand collaborations [8] Market Performance - In Greater China, hotel performance was stable, with RevPAR increasing by 8%, while European operations saw a 14% increase in RevPAR, supported by strong demand in London and Istanbul [12][14] - The U.S. portfolio improved with a 13% increase in RevPAR, aided by strong domestic travel and the post-renovation rebound of the New York property [14] - Tokyo achieved record-breaking metrics due to robust inbound travel during the sakura season [15] Company Strategy and Industry Competition - The company is focusing on a strategic review to enhance operational and financial performance, with a vision for 2035 that includes increasing portfolio growth through partnerships and diversifying into resorts and residences [20][21] - The strategy emphasizes reinventing flagship properties and expanding the brand beyond traditional hotel offerings into unique experiences [36][38] - The luxury hospitality landscape is evolving, with increasing competition and changing expectations from a new generation of luxury travelers [25][26] Management's Comments on Operating Environment and Future Outlook - The management remains cautiously optimistic about the outlook for 2026, citing a recovery in luxury travel demand and sustained appetite for personalized luxury hospitality [18][19] - The company acknowledges geopolitical tensions affecting the travel industry but believes its geographical balance mitigates potential impacts [44][45] - The focus will be on intentional growth, ensuring that expansion does not dilute the exclusivity of the Peninsula brand [54][56] Other Important Information - The company issued its debut private samurai bond for JPY 16 billion, becoming the first Hong Kong hospitality company to do so, and successfully refinanced its GBP Green Club Loan [10] - The company is exploring new experiences and resort ideas while maintaining a focus on the Peninsula brand [49][50] Q&A Session Summary Question: What is the company's plan to improve F&B profitability across the group? - The company aims to treat F&B as a strong business pillar, revisiting existing concepts and investing in talent to enhance performance [40][41] Question: Is there any disruption from the war in the Middle East to hotel operations? - Geopolitical tensions have impacted the travel industry, leading to some cancellations, but the company is monitoring the situation closely [44][45] Question: Will the more partnership and less ownership approach apply to existing hotels? - The company currently has a mix of ownership and partnership models and will evaluate future projects based on geography and expertise [46][47] Question: What is the company's dividend plan based on the new strategic plan? - The dividend policy aims to provide a stable and sustainable stream, determined by underlying earnings and commercial factors [60][65] Question: Is the group considering disposing of any existing assets? - While the company has a comprehensive collection of assets, it may reconsider some disposals in the future as part of its strategic review [67]

Financial Performance - The company achieved a significant turnaround with a return to profitability, reporting an underlying profit of HKD 105 million compared to an underlying loss of HKD 176 million last year [3][6] - Revenue from operations increased by 11% to HKD 7.6 billion, while operating EBITDA rose by 43% to HKD 1.7 billion, reflecting strong revenue growth and disciplined cost management [3][6] - Net cash from operations increased by 69%, indicating improved quality and sustainability of earnings [3][9] Business Line Performance - The hotel division saw a 13% increase in revenue, driven by strong performances in New York, London, Istanbul, and record-breaking results in Tokyo [4][7] - The commercial properties division reported a 5% revenue increase to HKD 929 million, supported by high occupancy rates at The Repulse Bay [7][8] - Revenue from the Peak Tram, Retail, and Others division increased by 6% to HKD 1 billion, benefiting from increased patronage and successful brand collaborations [8][14] Market Performance - In Greater China, hotel performance was stable, with RevPAR increasing by 8%, while European operations saw a 14% increase in RevPAR [12][13] - The US portfolio delivered a 13% increase in RevPAR, supported by strong domestic travel and the post-renovation rebound of the New York property [13] - Tokyo achieved record-breaking metrics due to robust inbound travel during the sakura season [14] Company Strategy and Industry Competition - The company is focusing on a new strategy called Vision 2035, which aims to enhance operational and financial performance, accelerate portfolio growth through partnerships, and reinvent flagship properties [18][19] - The luxury hospitality market is expected to continue growing, driven by rising global wealth and demand for personalized luxury experiences [20][24] - The company aims to balance its asset-heavy and asset-light models, focusing on branded residences and diversifying its portfolio [30][45] Management Comments on Operating Environment and Future Outlook - The management remains cautiously optimistic about the outlook for 2026, citing a recovery in luxury travel demand and sustained appetite for personalized luxury hospitality [17] - The company acknowledges challenges from geopolitical tensions affecting travel but believes its geographical balance mitigates risks [42][43] - The management emphasizes the importance of adapting to evolving guest expectations and the competitive landscape in luxury hospitality [24][36] Other Important Information - The company issued its debut private samurai bond for JPY 16 billion, becoming the first Hong Kong hospitality company to do so [10] - The company is exploring new experiences and resort concepts while maintaining a focus on the Peninsula brand [47][48] Q&A Session Summary Question: What is the company's plan to improve F&B profitability across the group? - The company aims to treat F&B as a strong business pillar, revisiting existing concepts and investing in talent to enhance performance [38][39] Question: Is there any disruption from the war in the Middle East to hotel operations? - Geopolitical tensions have impacted the travel industry, leading to some cancellations, but the company is monitoring the situation closely [42][43] Question: Will the less ownership, more partnership approach apply to existing hotels? - The company is already engaged in shared ownership for some properties and will evaluate partnerships based on project specifics [44] Question: What is the company's dividend plan based on the new strategic plan? - The dividend policy aims to provide a stable and sustainable stream, influenced by underlying earnings and cash flow considerations [62] Question: Is the group considering disposing of any existing assets? - While the company has a comprehensive collection of assets, it may reconsider asset disposals as part of its strategic review [63]