Financial Data and Key Metrics Changes - The group's underlying profit for the six months ended December 2025 was HKD 12.2 billion, a year-on-year increase of 16.7% driven by higher profits from trading and investment properties and lower finance costs [2][3] - Reported profit increased to HKD 10.2 billion, reflecting a 36.2% year-on-year growth [3] - The underlying earnings per share was HKD 4.21, while reported earnings per share was HKD 3.54 [3] - An interim dividend of HKD 0.98 per share was declared, marking a 3.2% increase from HKD 0.95 last year [3] - Net debt stood at HKD 83.6 billion with an improved gearing ratio of 13.5% compared to 15.1% in June 2025 [4][5] Business Segment Data and Key Metrics Changes - In property development, profit reached approximately HKD 4.9 billion, a substantial increase of 94.9% primarily due to higher profit recognition from Mainland projects [3] - The hotel business recorded an operating profit of HKD 428 million, up from HKD 377 million in the same period last year [4] - Profit from other business segments decreased by 11.7% year-on-year to about HKD 2.3 billion [4] - The group's total operating profit for the first half of fiscal year 2026 was HKD 16.5 billion, representing a 14.3% increase year-on-year [4] Market Data and Key Metrics Changes - The Hong Kong primary residential market saw higher transaction volumes and a modest price recovery, with contracted sales of about HKD 17.4 billion during the period [8][9] - The group's gross rental income in Hong Kong remained stable at around HKD 8.8 billion, with an overall average occupancy of approximately 92% [10] - The Mainland rental portfolio's gross rental income held steady at about RMB 3.1 billion, with a slight decrease of 0.8% in RMB terms [13] Company Strategy and Development Direction - The company aims to maintain a strong financial position to seize land opportunities in Hong Kong while focusing on prudent financial management [5][17] - The strategy includes leveraging a reputable brand to drive premium sales and ongoing portfolio reviews to enhance returns [5][17] - The company plans to continue launching new residential projects and unsold units while enhancing the competitiveness of its property investment portfolio [17][18] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the Hong Kong market's recovery, supported by robust IPO activities and favorable mortgage conditions [16][17] - The company anticipates continued strong demand for residential properties, driven by low mortgage rates and improving supply-demand dynamics [35][36] - The management highlighted the importance of adapting to new circumstances and leveraging technology to enhance property quality and services [18] Other Important Information - The group has a total land bank in Hong Kong of about 57.3 million sq ft and in Mainland China of 64.6 million sq ft [6][12] - The International Gateway Centre (IGC) is positioned as a key commercial landmark with high connectivity and sustainability credentials [23][24] - The company is committed to sustainability initiatives and enhancing the quality of living through its developments [16] Q&A Session All Questions and Answers Question: What is your view and outlook for the Hong Kong property home price? - Management noted that the Hong Kong residential market is entering a new phase of recovery, with positive rental carry attracting investors and end users [34] Question: Can we have an update on the leasing progress for the IGC and Artist Square Towers? - Management indicated strong interest in IGC, with leasing progressing well, particularly from the financial services sector [41][42] Question: What is your latest pricing strategy for residential projects in Hong Kong? - The company adheres to current market conditions, with moderate price increases to achieve sales targets while balancing volume and margin [54] Question: Any plans for asset disposal or changes in dividend policy? - Management stated there are no current plans for further asset disposals beyond Dynasty Court, and the dividend policy remains at 40%-50% of profits [57][93]

Core Insights - TOWNPLACE, a premium rental brand under Sun Hung Kai Properties, has joined The Point, Hong Kong's largest shopping mall membership program, marking a significant innovation in the residential leasing sector [2][16] - The collaboration aims to enhance the living experience by seamlessly integrating residential living with daily consumption through a digital platform, connecting residents to a vast network of nearly 30 shopping malls and 3,000 merchants [2][5] Group 1: Brand and Offerings - TOWNPLACE is designed specifically for global executives and professionals, offering high-quality rental solutions and continuing the legacy of luxury leasing associated with Sun Hung Kai Properties [3][17] - The brand features three major projects located in prime areas, providing nearly 1,300 units, with the flagship TOWNPLACE WEST KOWLOON offering unobstructed views of Victoria Harbour and proximity to key transport links [3][17] - The rental experience is enhanced by a digital access pass that connects residents to the extensive Sun Hung Kai ecosystem, allowing for a luxurious lifestyle that includes dining, shopping, and entertainment options [5][16] Group 2: Innovative Features - TOWNPLACE offers a unique TRIO club access experience, allowing residents to enjoy facilities across three premium locations, totaling 7,700 square meters, all within a 15-minute reach of central business districts [9][18] - The brand emphasizes a customized living experience, creating a community that fosters social connections and wellness through curated events and partnerships with renowned brands [14][18] - Residents can earn rewards through The Point program, with significant incentives for signing new leases or referring friends, enhancing the overall value proposition of living in TOWNPLACE [6][19]

Core Viewpoint - Sun Hung Kai Properties expresses deep sorrow over the serious casualties caused by the fire at Hong Kong's Tai Po Hong Fuk Court and announces a donation of HKD 20 million for emergency support [1] Group 1: Emergency Response and Support - The company will provide 160 hotel rooms for disaster victims in need of temporary accommodation [1] - The "The Point" membership program encourages members to donate points to social welfare organizations for disaster relief, with the company matching donations in points [1] - Various business units of the company responded immediately on the day of the fire, including keeping nearby shopping centers open overnight for residents [1] Group 2: Logistics and Communication Support - Yata quickly transported emergency supplies to the disaster area [1] - SmarTone's Tai Po store extended service hours to provide emergency communication support [1] - The company's volunteer team has arranged for volunteers to assist affected residents with various services [1]