Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties and lower finance costs, partially offset by impairment provisions of four development properties [3][4] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion, with underlying earnings per share up 0.5% to HKD 7.54 and reported earnings per share up 1.2% to HKD 6.65 [4][5] - The group's net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% in December [5][6] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [4] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio and a 3.2% decrease from the Mainland portfolio [4][14] - The hotel business recorded an operating profit of HKD 615 million, down from HKD 650 million in FY 2024 [5][26] Market Data and Key Metrics Changes - The group's total land bank in Hong Kong was about 57.4 million square feet, including 37.7 million square feet of completed properties and 19.7 million square feet under development [9] - Contracted sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [21] Company Strategy and Development Direction - The company aims to maintain a stable base of recurring income while leveraging its quality brand and products to drive sales [7][31] - Future projects include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, with a focus on high asset turnover in property development [32][42] - The company plans to adopt a proactive leasing approach and strengthen relationships with tenants to enhance competitive edge [31][43] Management Comments on Operating Environment and Future Outlook - The management noted that the global environment remains volatile, but monetary easing and a growing tourism industry in Hong Kong are expected to drive moderate economic growth [30] - The residential market in Hong Kong is showing signs of stabilization, with expectations of improved buyer confidence and transaction volumes [30][38] - The company remains confident in the long-term prospects of both the Mainland and Hong Kong markets, supported by proactive fiscal and monetary measures [46][47] Other Important Information - The group achieved a significant reduction in net finance costs by 24% year-on-year, driven by lower debt and borrowing costs [6] - The company has been recognized for its commitment to ESG, with an upgraded ESG rating to AA [27] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the residential market is nearing a bottom, with low interest rates and rising rents encouraging renters to become buyers [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at RMB 30 billion, with several projects planned for launch [55] Question: Expectations for government policy support measures - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [58] Question: Land banking appetite and preferences - The company is focused on acquiring residential land in prime locations while also considering commercial investments [59] Question: Prioritization between new investment, debt repayment, and shareholder returns - The company will focus on paying down debt while looking for the right opportunities for investment [64] Question: Dividend policy and share buyback considerations - The company maintains a policy of paying 50% of underlying profit as dividends and does not currently plan for share buybacks [65] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [66] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy [81]

Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties, alongside lower finance costs, partially offset by impairment provisions of HKD 4 billion on development properties [2] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion [2] - Underlying earnings per share rose by 0.5% to HKD 7.54, while reported earnings per share increased by 1.2% to HKD 6.65 [3] - The net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% [4][5] - Interest coverage improved to around six times compared to 4.6 times a year ago, with net finance costs dropping by 24% year-on-year [5] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [3] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio [3] - The hotel business recorded an operating profit of HKD 615 million, unchanged from FY 2024 [4] - The Group's total operating profit for FY 2025 was slightly down to about HKD 32.2 billion [4] Market Data and Key Metrics Changes - The Group's total land bank in Hong Kong was about 57.4 million square feet, with 37.7 million square feet completed and 19.7 million square feet under development [7] - Recognized property sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [9] - Contracted sales not yet recognized amounted to HKD 35.6 billion, with around HKD 30.1 billion expected to be recognized in FY 2026 [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [20] Company Strategy and Development Direction - The Group aims to maintain a stable base of recurring income and leverage its quality brand and products to drive sales [6] - The strategy includes a proactive leasing approach to strengthen competitive edge and cultivate long-term relationships with tenants [30] - New projects in Hong Kong include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, while in Shanghai, three ITC projects are under development [31][44] Management's Comments on Operating Environment and Future Outlook - The global economic environment is expected to remain volatile, but monetary easing and lower interest rates may favor economic growth [29] - In Hong Kong, the residential market shows signs of stabilization, with rising home rents and improved buyer confidence anticipated [29] - The Mainland economy is expected to maintain steady growth supported by proactive fiscal and monetary measures [29] - The Group remains confident in the long-term prospects of both the Mainland and Hong Kong markets [44] Other Important Information - The Group's ESG initiatives have been recognized, with an upgrade to AA in the MSGI ESG rating [27] - The Group has introduced innovative retail formats and family-friendly facilities in its malls to enhance shopper experience [15][16] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the market is nearing a bottom due to low interest rates and rising rents, which may lead renters to become buyers [50] - Upcoming launches may see more aggressive pricing, especially for projects like Koolen and Sky [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at HKD 30 billion, influenced by potential uncertainties in project approvals [54] Question: Expectations for government policy support - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [56] Question: Land banking appetite and focus - The Group is interested in acquiring residential land, particularly in prime locations, while also considering commercial investments [57] Question: Prioritization between new investments, debt repayment, and shareholder returns - The focus is currently on paying down debt and improving liquidity, with land acquisition prioritized when opportunities arise [62] Question: Dividend policy and share buyback considerations - The Group maintains a policy of paying 50% of underlying profit as dividends and does not plan to initiate share buybacks at this time [63] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [63] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy, and management is in talks with potential new tenants for vacant spaces [80][81]