2025-08-07 10:45Financial Data and Key Metrics Changes - The underlying profit for the company was $5.5 billion, and the recurring underlying profit was $4.7 billion, remaining close to the prior year [10][12] - Statutory profits decreased to $815 million due to changes in the value of investment properties [10] - The company declared a 4% increase in ordinary dividend per A share to HKD 130 [7][10] Business Line Data and Key Metrics Changes - The Property division saw a 15% growth in underlying profit, driven by higher disposal gains, while recurring profit was down 4% [15][16] - In Beverages, revenue from the Chinese Mainland increased by 3%, with EBITDA margin improving to 12.8% [22][26] - Aviation division's recurring profit increased by 40%, with Cathay Pacific's passenger revenue up 14% [28][29] Market Data and Key Metrics Changes - The retail market in the Chinese Mainland is performing well, offsetting softness in the Hong Kong office market [8][20] - The Chinese Mainland's attributable gross rental income has shown a healthy CAGR of 11% from 2016 to 2024 [20] - Revenue from the Chinese Mainland and Hong Kong grew, while revenue declined slightly in Taiwan and Vietnam due to market challenges [26] Company Strategy and Development Direction - The company is committed to investing HKD 100 billion over the next ten years, with 67% of that already committed [3][16] - There is a strong pipeline of projects in the Chinese Mainland, with several major developments underway [17][20] - The company is focusing on sustainability, with significant investments in renewable energy across its core divisions [13] Management's Comments on Operating Environment and Future Outlook - The management expects continued uncertainty in core markets, particularly in Hong Kong's office sector and Southeast Asia's beverage market [34][35] - The aviation sector is anticipated to maintain robust travel demand, while cargo market conditions remain uncertain [36] - The company is optimistic about the performance of its healthcare investments, particularly in Indonesia and Shanghai [32][51] Other Important Information - The company has completed significant land sales in Miami, contributing to its capital recycling strategy [15] - The beverage division is expanding production capacity with new plants in China and Vietnam [6][21] Q&A Session Summary Question: Regarding beverage ASP growth in Mainland China and outlook - Management noted that revenue grew by 3% and profit by 8% in the Chinese Mainland, driven by pricing initiatives, with a positive sparkling growth rate of 2.7% [40][41] - The company remains cautious about the outlook in China, focusing on long-term strategic initiatives to adapt to consumer trends [42] Question: On Southeast Asia challenges and share buyback plans - Management acknowledged the challenges in Southeast Asia but did not provide a specific timeline for a turnaround [39] - The share buyback program was completed, with a focus on long-term strategic investments over short-term solutions [43][44] Question: Strategic outlook for the next three to five years - The company has a strong pipeline of investments across core divisions, particularly in aviation and property, with a focus on the Chinese Mainland [49][50] - In healthcare, the company is taking a cautious approach, focusing on existing investments before pursuing new opportunities [52]