Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was ¥3,208.3 million, a decrease of 9.4% year-over-year and 3.7% sequentially [11] - Total GMV for the quarter was ¥7,929.5 million, reflecting challenges in the macro environment and competition [11] - Non-GAAP net income was ¥502.8 million, with a non-GAAP net margin of 15.7%, down from 18.3% the previous year [12] Business Line Data and Key Metrics Changes - Net revenue from franchisee tea houses was ¥2,811.6 million, accounting for 87.6% of total net revenue [11] - Net revenue from company-owned tea houses increased by 63.8% to ¥396.7 million, representing 12.4% of total revenue [11] - The average monthly GMV per tea house in Greater China was ¥378,506, showing a year-over-year decline [11] Market Data and Key Metrics Changes - GMV in Greater China decreased by 6.2% year-over-year to ¥7,629.2 million [11] - Overseas markets showed substantial progress, with GMV increasing 75.3% year-over-year to ¥300.3 million [11] - The company added a net 54 stores overseas, bringing the total to 262 stores as of September 30, 2025 [11] Company Strategy and Development Direction - The company focuses on high-quality development, emphasizing user value and community building [6][8] - Strategic expansion includes entering new markets like the Philippines and Vietnam, while maintaining a healthy pace of store openings [11][13] - The company aims to enhance product quality and user experience, moving beyond beverages to create distinctive cultural experiences [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the global tea beverage market's potential and the company's unique cultural and quality-driven path [8] - The company is committed to maintaining premium brand integrity despite competitive pressures [11] - Future strategies include product innovation, operational efficiency, and enhancing market presence [12][13] Other Important Information - The company achieved its 11th consecutive quarter of profitability, with GAAP net income of ¥397.9 million [12] - A special cash dividend of $0.92 per ordinary share was approved, totaling approximately $177 million [12] - The company ended the quarter with roughly ¥9,142 million in cash and cash equivalents, providing a solid financial foundation [12] Q&A Session Summary Question: How will the high-quality development strategy be executed? - The strategy will focus on brand building, product quality, customer experience, and channel expansion [13] Question: Can you share more about the overseas market network expansion? - The company entered the Philippines and Vietnam, with strong local operations and successful product launches in Southeast Asia [13]

Financial Data and Key Metrics Changes - Total revenue increased by 2% year-over-year to RMB 95.5 billion in Q3 2025 [19] - Cost-of-revenue ratio increased by 12.9 percentage points year-over-year to 73.6% due to higher courier incentives and increased overseas operational costs [19] - Selling and marketing expenses ratio increased by 16.7 percentage points year-over-year to 35.9% driven by increased investments in promotion and user incentives [19] - Adjusted net loss was RMB 16 billion, with a total segment operating loss of RMB 15.3 billion [20] Business Line Data and Key Metrics Changes - Food delivery business saw both DAU and MTU reach all-time highs, with a significant increase in user engagement [7] - The in-store business experienced nearly 20% year-over-year growth in both merchant and user bases, with increased transaction frequency [11] - New initiative segment revenue grew by 15.9% year-over-year to RMB 28 billion, driven by grocery retail and overseas business expansion [23] Market Data and Key Metrics Changes - The competitive landscape in food delivery has intensified, with a noted decrease in industry subsidies post-peak season [29] - Meituan maintained a leading position in GTV market share for mid to high AOV orders, with over 70% market share for orders above RMB 30 [29] - The company expanded its presence in the Middle East and Brazil, with Keeta achieving profitability in Hong Kong ahead of schedule [60][63] Company Strategy and Development Direction - The company is focused on enhancing service quality and operational efficiency while avoiding price wars [28][32] - Meituan aims to leverage technology and AI to empower merchants and improve user experience [18][56] - The strategy includes expanding the Meituan membership program to increase user engagement and transaction frequency [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the competitive landscape and emphasized the importance of sustainable growth over aggressive subsidies [24][32] - The company anticipates that irrational competition will transition to a more rational phase, focusing on quality and innovation [34] - Long-term targets remain unchanged, with a goal of reaching 100 million high-quality daily orders [34] Other Important Information - The company has committed an additional RMB 2 billion in merchant support funds to empower restaurant partners [22] - Investments in AI have led to the development of various tools aimed at enhancing operational efficiency for merchants [17][55] Q&A Session Summary Question: Changes in the competitive landscape of food delivery - Management noted a decrease in industry subsidies and highlighted the importance of focusing on higher AOV sectors to maintain market share [29][30] Question: Strategy for Meituan Instant Shopping - Management emphasized the competitive edge in Quick Commerce and plans to continue investing in supply-side operations while enhancing user experience [41][42] Question: Impact of new initiatives on in-store business - Management highlighted the unique operational strategy and consumer trust built over time, asserting confidence in maintaining market leadership despite competition [46][49] Question: Progress of AI initiatives - Management shared ongoing developments in AI capabilities and plans to integrate AI agents into the Meituan App for enhanced user experience [55][56] Question: Performance of Keeta in new markets - Management confirmed Keeta's profitability in Hong Kong and expressed optimism for similar trajectories in other markets, including the GCC and Brazil [60][63]

Financial Data and Key Metrics Changes - Total revenue increased by 2% year-over-year to RMB 95.5 billion in Q3 2025 [19] - Cost-of-revenue ratio increased by 12.9 percentage points year-over-year to 73.6% due to higher courier incentives and increased overseas operational costs [19] - Selling and marketing expenses ratio increased by 16.7 percentage points year-over-year to 35.9% driven by increased investments in promotion and user incentives [19] - Adjusted Net Loss was RMB 16 billion, with a total segment operating loss of RMB 15.3 billion [20][21] - Cash generated from operating activities turned negative at RMB 22.1 billion due to intensified competition investments [21] Business Line Data and Key Metrics Changes - Food delivery business saw a decline in average order value due to intensified competition, impacting commission revenue growth [21] - Both Daily Active Users (DAU) and Monthly Transacting Users (MTU) for food delivery hit an all-time high [7] - New user growth and core user purchase frequency for Meituan Instant Shopping increased in Q3 [8] - In-store business experienced nearly 20% year-over-year increase in both merchant and user base [11] Market Data and Key Metrics Changes - GTV market share for orders with a net AOV above RMB 15 is more than two-thirds, while above RMB 30 is over 70% [29] - The grocery retail segment revenue grew by 15.9% year-over-year to RMB 28 billion [23] Company Strategy and Development Direction - Company aims to maintain leadership in food delivery and quick commerce through technology and service quality improvements [18] - Focus on high-quality selections and sustainable growth rather than engaging in price wars [32] - Expansion into new markets like Brazil and GCC countries is part of the long-term strategy [64] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic competitive environment and emphasized the importance of service quality and operational efficiency [24] - The competitive landscape is expected to transition from capital-driven to efficiency-driven and ultimately to innovation-driven [32] - Long-term target remains to reach 100 million high-quality daily orders [34] Other Important Information - The company has committed an additional RMB 2 billion in merchant support funds to empower restaurant partners [22] - The Meituan membership program has been enhanced to drive user engagement and transaction frequency [16] Q&A Session Summary Question: Changes in the competitive landscape of food delivery - Management noted a temporary decrease in industry subsidies and highlighted a rebound in market share for order volume [29] Question: Competitive edge in Quick Commerce - Management emphasized strong competitive advantages in Quick Commerce through native supply and infrastructure upgrades [38] Question: Impact of new initiatives on profitability - Management confirmed that Keeta in Hong Kong has turned profitable ahead of schedule and expects similar trajectories in other markets [57][64]

Financial Data and Key Metrics Changes - Total revenue increased by 2% year-over-year to RMB 95.5 billion in Q3 2025 [17] - Cost-of-revenue ratio increased by 12.9 percentage points year-over-year to 73.6%, primarily due to higher courier incentives and increased overseas operational costs [18] - Selling and marketing expenses ratio increased by 16.7 percentage points year-over-year to 35.9% due to higher investments in promotion and user incentives [18] - Adjusted net loss for the quarter was RMB 16 billion, with a total segment operating loss of RMB 15.3 billion [18] Business Line Data and Key Metrics Changes - Food delivery business saw both DAU and MTU reach all-time highs, with a significant increase in user engagement [6] - The in-store business experienced nearly 20% year-over-year growth in both merchant and user bases, with increased transaction frequency [11] - New initiative segment revenue grew by 15.9% year-over-year to RMB 28 billion, driven by grocery retail and overseas business expansion [22] Market Data and Key Metrics Changes - The competitive landscape in food delivery has intensified, leading to a drop in average order value and negative growth in delivery service revenue [19] - The company maintained a leading position in GTV market share for mid to high AOV orders, with over two-thirds market share for orders above RMB 15 [26] - The company reported a rebound in market share in order volume, particularly in high-quality incremental orders [28] Company Strategy and Development Direction - The company is focused on maintaining leadership in the food delivery sector while investing in technology and service quality to drive sustainable growth [31] - The strategy includes enhancing the Meituan membership program to boost user engagement and transaction frequency [15] - The company aims to leverage its strengths in service quality and operational efficiency to navigate a dynamic competitive environment [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the food delivery market despite current losses, emphasizing a shift from capital-driven to efficiency-driven growth [30] - The company is committed to supporting small and mid-sized merchants and enhancing courier welfare as part of its long-term strategy [25] - Management noted that irrational competition is expected to transition to a more rational phase, allowing for sustainable growth [31] Other Important Information - The company has expanded its courier welfare program, including pension insurance and educational funds for couriers' children [7] - The Meituan Instant Shopping segment is positioned to lead rapid growth in the quick commerce space, with new user growth and purchase frequency increasing [9] - The company has launched several AI initiatives to enhance operational efficiency and improve user experience [16] Q&A Session Summary Question: Changes in the competitive landscape of food delivery - Management noted that competition has intensified, with a temporary decrease in industry subsidies and a focus on higher AOV sectors [26][28] Question: Strategy for Meituan Instant Shopping - Management highlighted the competitive edge in Quick Commerce and plans to deepen partnerships with brands while investing in supply-side operations [32][36] Question: Impact of new initiatives on profitability - Management confirmed that Keeta in Hong Kong has turned profitable ahead of schedule and expects similar trajectories in other markets [46][49] Question: Future plans for AI integration - Management discussed ongoing AI developments, including the integration of AI agents into the Meituan App to enhance user experience [44][45]

Financial Data and Key Metrics Changes - The group's revenue increased by 25.6% to HKD 6.8 billion compared to the same period last year [3] - Operating profit margin rose by 1.6 percentage points to 11.4%, boosting operating profits by 45.4% to HKD 518 million [4] - Profit attributable to equity holders increased by 42.5% to HKD 619 million, with basic earnings per share rising by 41.9% to HKD 1.05 [4] - Gross profit increased by 33.2% to HKD 2.37 billion, with overall gross margin reaching a record high of 34.7% [5][4] - Net borrowings increased by 282% to around HKD 1.1 billion, primarily due to increased gold losses [6] Business Line Data and Key Metrics Changes - Retailing revenue increased by 12.8% to HKD 5.26 billion, accounting for 76.8% of total revenue [8] - Wholesale revenue rose significantly by 119.6% to HKD 1.12 billion, turning a profit of HKD 108 million [9] - Licensing income increased by 16.6% to HKD 471 million, contributing 6.9% of total revenue [9] Market Data and Key Metrics Changes - Revenue from the Hong Kong/Macau/Overseas market increased by 9.9% to HKD 3.86 billion, accounting for 56.4% of total revenue [6] - Revenue from the mainland market surged by 54.2% to HKD 2.98 billion, representing 43.6% of total revenue [8] - Retailing revenue in the mainland increased by 23.6% to HKD 1.5 billion, but recorded a selling loss of HKD 14 million due to gold hedging losses [13] Company Strategy and Development Direction - The company has initiated a three-year corporate strategy focusing on overseas market expansion, market-oriented products, and operational efficiency enhancement [17] - Plans to enter at least three additional countries and add a net of 50 overseas shops within three years [18] - The company aims to optimize product mix and enhance product differentiation to meet diverse customer needs [20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite geopolitical tensions and rising gold prices, the group's performance remained strong across all regions [3] - The company expects double-digit growth in simple sales to continue in the second half of the financial year [40] - Management remains optimistic about future growth and network expansion, particularly in overseas markets [66] Other Important Information - The average international gold price increased by nearly 91% year-on-year, impacting sales by weight but increasing gross margins [10] - The company has integrated ESG principles into its corporate planning and operational decision-making processes [26] Q&A Session Summary Question: Can you compare November sales momentum versus October? - Management indicated that overall simple sales growth for the mainland market exceeded 30% in November, with fixed-price jewelry products growing faster than gold sales by weight [36] Question: What is the guidance for simple sales growth for the second half? - Management expects double-digit growth to continue in the second half, despite a higher base from the previous year [40] Question: What is the outlook for gold loan hedging loss for the second half? - Management stated that hedging loss is not expected to significantly impact overall performance, as revenue and profit are rising [50] Question: What are the drivers behind the strong performance in wholesale revenue? - The shift in strategy to include exclusive and promotional products in the wholesaling business has driven significant revenue growth [56] Question: What are the plans for entering new markets? - Management has plans to enter new markets in Europe and Southeast Asia, with at least two new countries expected next year [72]

Financial Data and Key Metrics Changes - The group's revenue increased by 25.6% to HKD 6.8 billion compared to the same period last year [3] - Operating profit margin rose by 1.6 percentage points to 11.4%, boosting operating profits by 45.4% to HKD 518 million [4] - Profit attributable to equity holders increased by 42.5% to HKD 619 million, with basic earnings per share rising by 41.9% to HKD 1.05 [4] - Gross profit increased by 33.2% to HKD 2.37 billion, while operating expenses rose by 12.4% to around HKD 1.3 billion [5] - The overall gross margin increased by 2 percentage points to 34.7%, marking a record high for both interim and annual results [4][5] Business Line Data and Key Metrics Changes - Retailing revenue increased by 12.8% to HKD 5.26 billion, accounting for 76.8% of total revenue [8] - Wholesale revenue rose significantly by 119.6% to HKD 1.12 billion, turning a profit of HKD 108 million [9] - Licensing income increased by 16.6% to HKD 471 million, contributing 6.9% of total revenue [9] Market Data and Key Metrics Changes - Revenue from the Hong Kong/Macau/Overseas market increased by 9.9% to HKD 3.86 billion, accounting for 56.4% of total revenue [6] - Revenue from the mainland market surged by 54.2% to HKD 2.98 billion, representing 43.6% of total revenue [8] - Retailing revenue in the mainland increased by 23.6% to HKD 1.5 billion, but recorded a selling loss of HKD 14 million due to gold hedging losses [13] Company Strategy and Development Direction - The company has set a new three-year corporate strategy focusing on overseas market expansion, market-oriented products, and operational efficiency enhancement [17] - Plans to enter at least three additional countries and add a net of 50 overseas shops within three years [18] - The company aims to optimize product mix and enhance product differentiation to meet diverse customer needs [20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite geopolitical tensions and rising gold prices, the group's performance remained strong across all regions [3] - The company expects double-digit growth to continue in the second half of the financial year [40] - Management is optimistic about future growth and network expansion, particularly in overseas markets [66] Other Important Information - The company experienced a net decrease of 174 shops globally, including 173 Luk Fook shops and one 3DG Jewelry shop [4] - The average international gold price increased by nearly 91% year-on-year, impacting sales by weight [10] - The company has integrated ESG principles into its corporate planning and operational decision-making processes [26] Q&A Session Summary Question: Can you compare November sales momentum versus October? - Management indicated that overall sales growth in the mainland market exceeded 30% in November, with fixed-price jewelry products growing faster than gold sales by weight [36] Question: What is the guidance for simple sales growth for the full year of FY 2026? - Management expects double-digit growth to continue in the second half of the year, despite a higher base [40] Question: What is the outlook for gross profit margin next year? - Management stated that if gold prices stabilize, the gross margin would return to standard levels, but they anticipate maintaining a record high gross margin in the second half [44][48] Question: What are the drivers behind the strong performance in wholesale revenue? - The company shifted exclusive and promotional products into the wholesaling business, leading to significant revenue increases [56] Question: How long will the current trend of store closures in mainland China continue? - Management expects a net reduction of around 200 shops for the full year, with fewer closures anticipated in the second half [65]

Financial Data and Key Metrics Changes - The group's revenue increased by 25.6% to HKD 6.8 billion compared to the same period last year [3] - Operating profit margin rose by 1.6 percentage points to 11.4%, boosting operating profits by 45.4% to HKD 518 million [4] - Profit attributable to equity holders increased by 42.5% to HKD 619 million, with basic earnings per share rising by 41.9% to HKD 1.05 [4] - Overall gross margin increased by 2 percentage points to 34.7%, marking a record high for both interim and annual results [4][5] - Inventory balance grew to around HKD 12.3 billion, with inventory turnover days increasing by over 60 days year-on-year [5][6] Business Line Data and Key Metrics Changes - Retailing revenue increased by 12.8% to HKD 5.26 billion, accounting for 76.8% of total revenue [8] - Wholesale revenue rose significantly by 119.6% to HKD 1.12 billion, turning selling profit from a loss to a profit of HKD 108 million [9] - Licensing income increased by 16.6% to HKD 471 million, driven by improved sales in the mainland [9] Market Data and Key Metrics Changes - Revenue from the Hong Kong/Macau/Overseas market increased by 9.9% to HKD 3.86 billion, accounting for 56.4% of total revenue [6] - Revenue from the mainland market surged by 54.2% to HKD 2.98 billion, accounting for 43.6% of total revenue [7] - Retailing revenue in the mainland increased by 23.6% to HKD 1.5 billion, despite selling losses due to gold hedging [13] Company Strategy and Development Direction - The company has set a new three-year corporate strategy focusing on overseas market expansion, market-oriented products, and operational efficiency enhancement [17] - Plans to enter at least three additional countries and add a net of 50 overseas shops within three years [18][19] - Emphasis on product differentiation and optimizing product mix to cater to both premium and affordable luxury segments [20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite geopolitical tensions and rising gold prices, the group's performance remained strong across all regions [3] - The company expects to see continued double-digit growth in simple sales for the second half of the financial year [36] - Management is optimistic about future growth and network expansion, particularly in overseas markets [45] Other Important Information - The company experienced a net decrease of 174 shops globally, including 173 Luk Fook shops and one 3DG Jewelry shop [4] - The average international gold price increased by nearly 91% year-on-year, impacting sales by weight [10] - The company has integrated ESG principles into its corporate planning and operational decision-making processes [26] Q&A Session Summary Question: Can you compare November sales momentum versus October? - Management indicated that overall simple sales growth for the mainland market exceeded 40% from October to November, with self-operated shops showing mid-teen growth and licensed shops over 40% [32] Question: What is the sales momentum by products for November? - Fixed-price jewelry products are growing faster than gold sales by weight, with gold sales by weight increasing faster in November compared to fixed-price jewelry [33][34] Question: What is the guidance for simple sales growth for the full year of FY 2026? - Management expects double-digit growth to continue in the second half, despite a higher base in the second half compared to the first [36] Question: What is the outlook for gross profit margin next year? - Management anticipates maintaining a high gross margin due to the new VAT policy and lower cost inventory, with expectations for a record high margin in the second half [39] Question: What are the drivers behind the strong performance in wholesale revenue? - The shift in strategy to include exclusive and promotional products in the wholesaling business has driven significant revenue growth [41]

Financial Data and Key Metrics Changes - Adjusted revenue reached HKD 4.9 billion, with cash profits of HKD 203 million, despite a net loss attributable to shareholders of HKD 988 million due to non-cash adjustments [3][5][11] - The adjusted gross profit margin increased by 3.6 percentage points to 34.8%, driven mainly by property sales [11][12] - The net gearing ratio improved to 64.9%, down 2.7 percentage points compared to the end of March [6][13] Business Line Data and Key Metrics Changes - Property development revenue was HKD 3.2 billion, with a profit margin increase from 31.3% to 36.8% [25][26] - Hotel revenue increased by 10% to nearly HKD 1 billion, with significant contributions from the newly opened Dorset Kai Tak [4][35] - Car park revenue decreased by 10% to HKD 343 million, while gaming revenue increased by 11% to HKD 2,018 million [43][45] Market Data and Key Metrics Changes - The company reported strong sales momentum in Manchester, with prices increasing from GBP 380 to over GBP 580 per sq ft, reflecting over 50% growth [27] - In Hong Kong, the Pavilion Forest project has seen strong sales, with over 700 units sold out of 1,300 [32] - The hotel market in Hong Kong is showing improvement, with occupancy rates trending upwards [35] Company Strategy and Development Direction - The company aims to accelerate project completions to optimize cash flow and reduce debt levels, maintaining a robust development pipeline of approximately HKD 62 billion [25][28] - There is a focus on divesting non-core assets and transitioning towards an asset-light business model [8][50] - The company is also looking to enhance its hotel portfolio and expand its presence in key markets [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the Hong Kong property market and the potential for further sales growth [53][54] - The company is focused on reducing bank loans and improving financial health before addressing perpetual bond issues [60][61] - Future cash flow visibility is strong, with HKD 9.3 billion in pre-sales and contracted sales expected to contribute significantly [49] Other Important Information - The company has entered into agreements to dispose of certain non-core assets, including car parks and hotel interests, to unlock capital for future investments [8][21] - The company is actively involved in community support initiatives following a recent tragedy, demonstrating its commitment to social responsibility [24][56] Q&A Session Summary Question: Any further impairment expected for the Sai Ying Pun project? - Management does not foresee further material impairment, citing recent sales performance and market stabilization [53][54] Question: What is the company's strategy regarding sustainability? - The company is converting more loans to sustainability-focused financing and emphasizes its commitment to social impact through various initiatives [55][56] Question: What are the plans for the perpetual bonds? - The priority remains on reducing bank loans, with no immediate plans for land replenishment unless attractive opportunities arise [60][61]

Financial Data and Key Metrics Changes - Adjusted revenue reached HKD 4.9 billion, with cash profits of HKD 203 million, primarily driven by property development revenue of HKD 3.2 billion [3][5] - Net loss attributable to shareholders was HKD 988 million, influenced by non-cash adjustments including impairment losses totaling HKD 281 million [5][6] - The adjusted net gearing ratio improved to 64.9%, down 2.7 points compared to the end of March [6][13] Business Line Data and Key Metrics Changes - Property development revenue decreased to HKD 3.2 billion from HKD 3.6 billion year-on-year, but profit margin increased from 31.3% to 34.9% [25][26] - Hotel revenue increased by 10% to nearly HKD 1 billion, with significant contributions from Dorsett Kai Tak [4][35] - Car park revenue decreased by 10% to HKD 343 million, while gaming revenue increased by 11% to HKD 2,018 million [43][45] Market Data and Key Metrics Changes - The company reported strong sales momentum in Manchester, with prices increasing from GBP 380 to over GBP 580 per sq ft, reflecting over 50% growth [27] - In Hong Kong, the Pavilion Forest project has seen strong sales, with over 700 units sold out of 1,300 [32] - The hotel market in Hong Kong is showing improvement, with occupancy rates trending upwards [35] Company Strategy and Development Direction - The company aims to accelerate project completions to optimize cash flow and reduce debt levels, maintaining a robust development pipeline of approximately HKD 62 billion [25][28] - Focus on divesting non-core assets and transitioning towards an asset-light business model [49] - The company is restructuring investments in Queensland and expects to increase its stake in the Queens Wharf Brisbane project to 50% [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Hong Kong property market stabilization and anticipated no further material impairments [51][52] - The company expects to further reduce its gearing ratio and improve cash flow visibility from pre-sales and completed projects [47][48] - Future hotel revenue is projected to grow with the stabilization of new hotels and ongoing operational improvements [49] Other Important Information - The company has entered into agreements to dispose of non-core assets, including a car park in Chatswood, Sydney, for AUD 3.7 million [8][43] - The company is actively involved in community support efforts following a recent fire incident in Hong Kong [1][24] Q&A Session Summary Question: Any plans for the Yaru project and potential impairments? - Management hopes for no further impairments, citing recent sales performance in the Pavilion Forest project [51] Question: What is the company's strategy regarding perpetual bonds? - The priority is on reducing bank loans, with a focus on leveraging the HKD 61 billion development pipeline [59]

Financial Data and Key Metrics Changes - Adjusted revenue reached HKD 4.9 billion, with cash profits of HKD 203 million, despite a net loss attributable to shareholders of HKD 988 million due to impairment losses [4][6][12] - The adjusted gross profit margin increased by 3.6 percentage points to 34.8%, driven mainly by property sales [12][13] - The net gearing ratio improved to 64.9%, down 2.7 percentage points compared to the end of March [7][14] Business Line Data and Key Metrics Changes - Property development revenue was HKD 3.2 billion, with a profit margin increase from 31.3% to 36.8% [25][26] - Hotel revenue increased by 9.5% to nearly HKD 1 billion, with occupancy rates improving significantly [36] - Car park revenue decreased by 10% to HKD 343 million, attributed to holding costs [45] - Gaming revenue increased by 11% to HKD 2,018 million, with an adjusted gross profit margin of 42% [46] Market Data and Key Metrics Changes - The company reported strong sales momentum in Manchester, with prices increasing over 50% in recent years [27] - In London, the Aspen at Consort Place project is expected to benefit from a housing supply shortage [29] - The Melbourne market showed strong performance with Westside Place selling out 1,400 units [31] Company Strategy and Development Direction - The company aims to accelerate project completions to optimize cash flow and reduce debt levels, maintaining a robust development pipeline of approximately HKD 62 billion [25][28] - There is a focus on divesting non-core assets and transitioning towards an asset-light business model [52] - The company plans to unlock hotel revaluation surplus and continue to enhance its hotel portfolio [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the Hong Kong property market and the potential for no further material impairments [55][56] - The company is focused on reducing bank loans and maintaining a healthy financial position, with plans to complete ongoing projects [62][63] - Future cash flow visibility is strong, with HKD 9.3 billion in pre-sales and contracted sales expected to contribute to revenue [51] Other Important Information - The company has entered into agreements to dispose of certain non-core assets, including a car park in Sydney for AUD 3.7 million [9][45] - The company is actively involved in community support following a recent tragedy, demonstrating its commitment to social responsibility [2][24] Q&A Session Summary Question: Is there a risk of further impairment for the Sai Ying Pun project? - Management does not foresee further impairment, citing recent market stabilization and strong sales performance in the Pavilion Forest project [55][56] Question: What is the company's strategy regarding sustainability? - The company is converting loans to sustainability-focused financing and emphasizes its commitment to social impact through various initiatives [57][58] Question: What are the plans for the perpetual bonds? - The priority is on reducing bank loans, with no immediate rush to address the high coupon rates of perpetual bonds [62][63]