Financial Data and Key Metrics Changes - In Q4 2025, the company reported a net sales increase of 2.2% on a reported basis and approximately 1% on a constant currency basis, marking a return to positive growth [3][4] - Gross margin improved to 60.3%, a 10 basis point increase from the previous year, attributed to regional mix and effective tariff mitigation [4][30] - Adjusted EBITDA margin for Q4 was 20.3%, maintaining strong performance while investing in new store openings [31] Business Line Data and Key Metrics Changes - The direct-to-consumer (D2C) business saw significant growth, with D2C e-commerce up 12% and D2C blended sales up 5.2% [11] - The non-travel category grew by 6.7% year-over-year, now representing 37.6% of total sales [12] - Travel sales experienced a slight decrease of 2.2% compared to the previous year, but showed sequential improvement from a decline of 5.3% [13] Market Data and Key Metrics Changes - The Asia region showed a strong recovery with 5.1% growth on a constant currency basis in Q4, driven by improvements in China, Korea, India, and Japan [7][8] - North America experienced sequential improvements, although still facing challenges from prior year comparisons [8] - Europe maintained steady growth at 1% for both quarters, with strong D2C performance particularly in Q4 [8] Company Strategy and Development Direction - The company plans to focus on four strategic pillars: amplifying brand awareness, winning in digital, seizing opportunities in lifestyle bags, and enhancing product development [14][15] - Increased marketing spend is planned, targeting 6.5% of net sales in 2026 to support brand awareness and long-term growth [16][40] - The company is preparing for a potential dual listing in the U.S. to enhance shareholder value [28][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth driven by travel demand and strategic execution, despite uncertainties from geopolitical conflicts [38][40] - The company anticipates Q1 2026 net sales to be flat on a constant currency basis due to the impact of the Middle East conflict [38] - Management highlighted the importance of maintaining strong gross margins and effective supplier relationships to navigate cost pressures [30][49] Other Important Information - The company generated strong adjusted free cash flow of $246 million for the year, with a healthy balance sheet showing a net debt position of approximately $1.1 billion [35] - The company received recognition for sustainability efforts, ranking 74th in Time's World's Best Companies in Sustainable Growth for 2025 and 2026 [23][24] Q&A Session Summary Question: Performance by market and resilience trends - Management noted sequential improvement across all business areas, with specific impacts in the Middle East and resilience in Japan, Korea, and China [47][48] Question: Cost pressures from Middle East conflicts - Management acknowledged early signs of cost impacts, particularly in shipping and raw materials, but emphasized their ability to manage margins effectively [49][50] Question: Margin expectations for Q1 and store expansion plans - Margins are expected to remain stable in Q1, with store expansions focused on Asia and Europe, particularly for TUMI [54][56] Question: Revenue trends in North America and wholesale customer sentiment - North America showed improving trends, although wholesale customers remain cautious in their purchasing [60][62] Question: Shareholder return expectations post dual listing - The company plans to maintain a dividend payout ratio of around 45% of adjusted net income and will evaluate share buybacks after the dual listing [63][64]

Financial Data and Key Metrics Changes - The company achieved a revenue of CNY 3.76 billion in 2025, representing a year-on-year increase of 57.7% with a comprehensive gross margin of 64.5% [35][70] - The adjusted operating loss was CNY 2.37 billion, primarily due to increased R&D investments [37][72] - The net loss reported was CNY 10.5 billion, compared to a net profit of CNY 2.0 billion in the previous year, mainly driven by an increase in the fair value of certain convertible bonds [73] Business Line Data and Key Metrics Changes - Revenue from automotive solutions surged by 144% to CNY 1.62 billion, accounting for 43% of total revenue, up from 28% in 2024 [41][70] - The automotive grade SoC solution annual shipments exceeded 4 million units, with a year-on-year growth of about 39% [19] - Revenue from licensing and services increased by 17.4% year-on-year to CNY 1.94 billion [46][71] Market Data and Key Metrics Changes - The penetration rate of intelligent assisted driving in China's passenger car market reached 68% in 2025, with advanced models accounting for 43% of all intelligent vehicles [4][5] - Horizon Robotics captured 44% of the market share in the NOA segment among Chinese domestic brands [16][17] - The company secured mass nominations from 11 automakers for over 40 overseas models, with a cumulative lifecycle export nominations reaching 2 million units [29][33] Company Strategy and Development Direction - The company aims to help Chinese domestic brands go global, assist joint venture brands in the domestic market, and support overseas brands in their intelligent transformation [29][31] - Horizon Robotics is focusing on the democratization of intelligent assisted driving, with plans to expand into the mainstream market priced around CNY 100,000 [10][12] - The company is committed to increasing R&D investments to enhance its AI foundation models and develop L4 and L5 level autonomous driving technologies [39][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a high gross margin above 60% due to the high-margin business model of SoC plus software licensing [100][107] - The company anticipates a strong product cycle and a full pipeline for nominations, projecting a revenue growth rate of around 60% for the next few years [50][81] - The management highlighted the importance of achieving a critical mass of intelligent driving mileage to transition to a subscription model for HSD [26][125] Other Important Information - Horizon's HSD solution entered mass production in November 2025, quickly surpassing 22,000 units in shipments [22] - The company plans to launch a full vehicle AI Agentic SoC and OS, aiming to provide a comprehensive intelligent driving experience [54][60] - Horizon Robotics is not focused on competing directly with Qualcomm in the mature cockpit market but aims to innovate through technological advancements [56][122] Q&A Session Summary Question: What drives the strong revenue growth and how can it sustain a 60% CAGR? - Management indicated that the automotive segment's revenue growth will accelerate to around 60% in 2026, driven by increased shipping volumes and higher ASPs [81][82] Question: What is the shipment target for HSD in 2026? - The company estimates HSD shipments will reach about 400,000 units in 2026, with significant progress in negotiations with top-tier automakers [92] Question: What is the outlook on gross margin performance? - Management is confident in maintaining a gross margin above 60% due to the high-margin nature of their business model [100][107] Question: How is Horizon addressing memory price hikes? - The company has locked in memory supply prices and believes that fluctuations will not significantly impact gross margins [101][102]

Financial Data and Key Metrics Changes - The company achieved a revenue of CNY 3.76 billion in 2025, representing a year-on-year increase of 57.7% with a gross margin of 64.5% [28][49] - The adjusted operating loss was CNY 2.37 billion, primarily due to increased R&D investments [29][51] - The net loss reported was CNY 10.5 billion, compared to a net profit of CNY 2.0 billion in the previous year, mainly driven by fair value changes of convertible bonds [51] Business Line Data and Key Metrics Changes - Revenue from automotive solutions surged by 53.9%, with product solutions revenue increasing by 144% to CNY 1.62 billion [48][49] - The proportion of SoC solutions supporting NOA functions reached 45% of total shipments, contributing over 80% of revenue [34] - The automotive grade SoC solution annual shipments exceeded 4 million units, with a year-on-year growth of about 39% [18] Market Data and Key Metrics Changes - The penetration rate of intelligent assisted driving in China's passenger car market reached 68%, with advanced models accounting for 43% of all intelligent vehicles sold [4][5] - Horizon Robotics captured 44% of the market share in the domestic brand NOA market, ranking first [15][16] - The sales share of NOA level models in the price range under CNY 200,000 rose from 5% to over 50% [6] Company Strategy and Development Direction - The company aims to help Chinese domestic brands go global, assist joint venture brands in the domestic market, and support overseas brands in their transition to intelligent driving [25] - Horizon Robotics is focusing on the democratization of intelligent assisted driving, expanding its market presence in the mass market [9][10] - The company plans to launch the Agentic Car SoC and Agentic Car OS, aiming to provide a comprehensive intelligent driving experience [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a high gross margin above 60% due to the high-margin nature of their business model [72][77] - The company anticipates a revenue growth rate of around 60% for the coming years, driven by strong product cycles and a robust pipeline of nominations [37][60] - The management highlighted the importance of R&D investment in maintaining technological leadership and preparing for future advancements in autonomous driving [31][50] Other Important Information - Horizon's HSD solution has become a significant factor in consumer car-buying decisions, with 83% of top-tier models featuring HSD [21] - The company has secured mass nominations from 11 automakers for over 40 overseas models, indicating strong global expansion efforts [25][27] - The company is actively negotiating with top-tier Chinese automakers for HSD production nominations, expecting a significant increase in shipments [67] Q&A Session Summary Question: What drives the strong revenue growth and how can it sustain a 60% CAGR? - Management indicated that the growth is driven by increased shipping volumes and higher average selling prices (ASP) of advanced SoCs, with expectations for continued strong performance in 2026 [55][59] Question: What is the shipment target for HSD in 2026? - The company estimates HSD shipments will reach about 400,000 units in 2026, with significant progress in negotiations with major automakers [67] Question: What is the outlook on gross margin performance? - Management is confident in maintaining a gross margin above 60%, citing the high-margin nature of their SoC and software licensing business model [71][77] Question: How is the company addressing memory price hikes? - The company has locked in memory supply prices and does not expect fluctuations to impact gross margins significantly, focusing on SoC and software rather than other hardware [73][74]

Financial Data and Key Metrics Changes - The company achieved a revenue of CNY 3.76 billion in 2025, representing a year-on-year increase of 57.7% with a gross margin of 64.5% [27][48] - The adjusted operating loss was CNY 2.37 billion, primarily due to increased R&D investments [28][51] - The automotive solutions revenue surged by 53.9%, with product solutions revenue increasing by 144% to CNY 1.62 billion [48][49] Business Line Data and Key Metrics Changes - The automotive grade SoC solution annual shipments exceeded 4 million units, with a year-on-year growth of about 39% [16] - The market share for advanced intelligent assisted driving models reached 14.4%, nearly tying with Huawei [14] - The proportion of SoC shipments supporting NOA functions reached 45%, nearly five times the shipments during the same period in 2024 [16][18] Market Data and Key Metrics Changes - The penetration rate of intelligent assisted driving in China's passenger car market reached 68%, with advanced models accounting for 43% of all intelligent vehicles [4][5] - In the price range under CNY 200,000, domestic brands captured a significant market share, with NOA level models rising from 5% to over 50% [6][15] Company Strategy and Development Direction - The company aims to help Chinese domestic brands go global, assist joint venture brands in the domestic market, and support overseas brands in their transition to intelligent driving [23][25] - The focus is on democratizing intelligent assisted driving and expanding into higher price ranges with advanced solutions [6][19] - The company plans to launch the Agentic Car SoC and OS, aiming to provide a comprehensive intelligent driving experience [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a high gross margin above 60% due to the high-margin nature of the SoC and software licensing business model [71][76] - The company anticipates a strong growth momentum with a projected revenue growth rate of around 60% for the coming years [36][59] - The management highlighted the importance of R&D investment in maintaining technological leadership and preparing for future autonomous driving capabilities [29][50] Other Important Information - The company has secured nominations from 11 automakers for over 40 overseas models, indicating strong global expansion efforts [23] - The HSD solution has become a significant factor in consumer car-buying decisions, with 83% of top-tier models featuring HSD [20][21] Q&A Session Summary Question: What drives the strong revenue growth and how can it sustain a 60% CAGR? - Management indicated that the growth is driven by increased shipping volumes and higher average selling prices (ASP), with expectations for continued strong performance in 2026 [55][59] Question: What is the shipment target for HSD in 2026? - The company estimates HSD shipments will reach about 400,000 units in 2026, with significant progress in negotiations with top-tier automakers [66] Question: What is the outlook on gross margin performance? - Management is confident in maintaining gross margins above 60% due to the high-margin nature of their business model and locked-in memory supply prices [69][76] Question: How is the company addressing memory price hikes? - The company has locked in memory supply prices and believes that fluctuations will not significantly impact gross margins, focusing on innovation and cost efficiency [72][76] Question: What differentiates Horizon from competitors like Qualcomm and NVIDIA? - Horizon's integrated hardware and software solutions provide a competitive edge, allowing for a seamless transition from intelligent driving to cockpit integration, unlike competitors who struggle with comprehensive solutions [84][86]

Financial Data and Key Metrics Changes - The company reported a net profit after tax of $787 million for the year ended December 31, 2025, down from $924 million in 2024, but underlying profit rose 18% to $746 million, the highest in its history [4][19] - Total revenues and other income increased by 2% to $2.6 billion in 2025, with total assets at $26.3 billion and net assets per share of $9.86 [5][22] - The company achieved a capital expenditure (CapEx) of $4.2 billion, slightly above the guided expectation of $4 billion [5] Business Line Data and Key Metrics Changes - Operating lease rental income rose to $1.9 billion, reflecting an improvement in lease rate factor to 10.3% [19] - Finance lease revenue increased by 25% to $271 million, driven by strong finance lease receivables [19] - Gains on aircraft sales surged by 81% to $230 million, attributed to robust demand for used aircraft [20] Market Data and Key Metrics Changes - Global passenger traffic rose nearly 4% in January 2026, although growth in Asian markets was tempered by the timing of the Lunar New Year [8] - The value of global aircraft deliveries increased by 28% to $100 billion, marking the first time this level has been achieved since 2018 [6] - The company anticipates a total of 16% growth in delivered aircraft value in 2026, with expectations of an 80% increase in the value of new aircraft deliveries by 2030 [7] Company Strategy and Development Direction - The company aims to achieve $40 billion in assets by 2030, supported by a delivery pipeline of 337 aircraft and $19 billion in committed capital expenditure [8][16] - The company is focused on digitalization and data analytics to enhance operational efficiency and agility [15][16] - The company has increased its dividend payout policy to up to 40% of reported net profit after tax, reflecting confidence in long-term growth [5][54] Management's Comments on Operating Environment and Future Outlook - Management noted that airlines have not yet fully felt the impact of rising jet fuel prices, with the average price per barrel expected to be $88 [9][31] - The company is well-positioned with over $8 billion in committed liquidity to support airline customers amid potential financing needs [10][24] - Management expressed optimism about the demand for new aircraft and the company's ability to capitalize on industry trends [25][26] Other Important Information - The company maintained a 100% lease rate for its aircraft and engines, the only major lessor to achieve this metric [13] - The weighted average age of the owned portfolio was five years, with 84% of the fleet being the latest technology and most fuel-efficient aircraft [13][16] - The effective tax rate rose to 15.9% in 2025 due to new minimum corporate tax rules [22] Q&A Session Summary Question: Impact of Middle East situation on credit risk and exposure - Management confirmed exposure of 25 aircraft with six airlines in the Middle East, all current on lease payments and fully insured [30][31] Question: Engine maintenance costs and risks - Management acknowledged rising maintenance costs but noted improvements in engine durability and supply chain stabilization [37][38] Question: Aircraft delivery deferrals due to Middle East conflict - Management stated there have been no delivery issues or deferrals reported as of now [46] Question: M&A activity in the leasing sector - Management sees ongoing consolidation in the industry as logical and is open to considering opportunities if they arise [48] Question: Dividend payout trajectory and CapEx targets - Management expressed comfort with increasing the dividend payout and the ability to leverage debt for growth opportunities [54][55]

Financial Data and Key Metrics Changes - The company reported a net profit after tax of $787 million for the year ended December 31, 2025, down from $924 million in 2024. However, the underlying profit rose 18% to $746 million, marking the highest recorded in the company's history [4][5] - Total revenues and other income increased by 2% to $2.6 billion in 2025, with total assets at $26.3 billion and net assets per share of $9.86 [5][23] - The company achieved a final dividend of $0.3061 per share, representing an enhanced policy of paying up to 40% of reported net profit after tax [5] Business Line Data and Key Metrics Changes - Operating lease rental income rose to $1.9 billion, reflecting an improvement in lease rate factor to 10.3% [20] - Finance lease revenue increased by 25% to $271 million, with finance lease receivables exceeding $4.1 billion [20] - Gains on aircraft sales surged by 81% to $230 million, driven by the sale of 35 aircraft compared to 29 in the previous year [21] Market Data and Key Metrics Changes - Global passenger traffic rose almost 4% in January 2026, although growth in Asian markets was tempered by the timing of the Lunar New Year holiday [9] - The International Air Transport Association (IATA) forecasts a global profit of $41 billion for 2026, based on an average jet fuel price of $88 per barrel [9] - The company has 25 aircraft with six different airlines in the Middle East, representing about 8.7% of its fleet, all with strong airlines up to date on lease payments [31] Company Strategy and Development Direction - The company expects the value of new aircraft deliveries to rise by close to 80% between 2025 and 2030, supporting long-term growth targets [8] - The company aims to achieve $40 billion in assets by 2030, with a current order book of 337 aircraft and a committed capital expenditure of $19 billion [8][12] - The company is focused on digitalization and enhancing operational efficiency through state-of-the-art IT systems and data analytics [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while jet fuel prices have risen, airlines have not yet fully felt the impact due to pricing structures based on previous months [31] - The company is well-positioned with over $8 billion in committed liquidity to support airline customers amid rising fuel costs [10] - Management expressed confidence in the ability to capitalize on growth opportunities, particularly in light of strong demand for new aircraft and a robust order book [26] Other Important Information - The company maintained a 100% lease rate for its aircraft and engines, with a weighted average age of owned aircraft at 5 years [14] - The effective tax rate rose to 15.9% in 2025 due to new minimum corporate tax rules [22] - The company engaged in various CSR activities, with nearly 90% of employees participating in community events [18] Q&A Session Summary Question: Impact of Middle East situation on credit risk and exposure - Management confirmed exposure to the Middle East is limited to 25 aircraft with strong airlines, all current on lease payments, and all aircraft are fully insured [31] Question: Engine maintenance costs and risks - Management acknowledged rising maintenance costs but noted improvements in engine durability and supply chain stabilization may mitigate future increases [38] Question: Aircraft delivery deferrals due to Middle East conflict - Management stated there have been no delivery issues or deferrals reported as of now, but future developments depend on the duration of the conflict [45] Question: M&A activity in the leasing sector - Management sees ongoing consolidation in the industry as logical and is open to considering opportunities if they arise, although growth has been organic to date [48] Question: Financing plans for 2026 - Management indicated strong cash flow and liquidity will support upcoming financing needs, with a focus on evaluating market conditions for optimal funding strategies [70]

Financial Data and Key Metrics Changes - The company reported a net profit after tax of $787 million for the year ended December 31, 2025, down from $924 million in 2024, but underlying profit rose 18% to $746 million, marking the highest in the company's history [4][5] - Total revenues and other income increased by 2% to $2.6 billion in 2025, with total assets at $26.3 billion and net assets per share of $9.86 [5][23] - The company achieved a final dividend of $0.3061 per share, representing an enhanced policy of paying up to 40% of reported net profit after tax [5] Business Line Data and Key Metrics Changes - Operating lease rental income rose to $1.9 billion, with a lease rate factor improvement to 10.3% [20] - Finance lease revenue increased by 25% to $271 million, driven by over $4.1 billion in finance lease receivables [20] - Gains on aircraft sales surged by 81% to $230 million, attributed to strong demand for used aircraft and an increase in sales margin [21] Market Data and Key Metrics Changes - Global passenger traffic rose nearly 4% in January 2026, although growth in Asian markets was tempered by the timing of the Lunar New Year [8] - The International Air Transport Association (IATA) forecasts a 4.9% growth in global passenger traffic for 2026, but this may be challenged by recent developments in the Middle East [8][9] - Jet fuel expenses represented about 26% of IATA members' cost base, with airlines currently reporting limited effects from rising fuel prices due to hedging [9][10] Company Strategy and Development Direction - The company expects the value of new aircraft deliveries to rise by close to 80% between 2025 and 2030, supporting long-term growth targets [7] - The company has a delivery pipeline of 337 aircraft, with purchase commitments for an additional 160 aircraft scheduled for delivery between 2025 and 2032 [7] - The company is focused on digitalization and enhancing operational efficiency through state-of-the-art IT systems and data analytics [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on opportunities arising from the current operating environment, particularly in supporting airline customers amid rising jet fuel prices [32] - The company is well-positioned with around $8 billion in available liquidity to meet funding needs and capitalize on growth opportunities [26][27] - Management noted that the demand for new aircraft remains strong, driven by traffic growth and the need to replace an aging global fleet [26] Other Important Information - The company maintained a 100% lease rate for its aircraft and engines, with a weighted average age of owned aircraft at 5 years [14] - The effective tax rate rose to 15.9% in 2025 due to new minimum corporate tax rules [22] - The company has engaged in sustainability initiatives, including promoting the use of sustainable aviation fuel [18] Q&A Session Summary Question: Impact of Middle East situation on credit risk and airline customers - Management confirmed exposure to the Middle East is limited to 25 aircraft with strong airlines, all current on lease payments, and emphasized that all aircraft are fully insured [31][32] Question: Engine maintenance costs and their impact - Management acknowledged rising maintenance costs but noted improvements in engine durability and supply chain stabilization may mitigate future increases [36][38] Question: Aircraft delivery deferrals due to Middle East conflict - Management stated there have been no delivery issues or requests for deferrals as of now, but future developments depend on the duration of the conflict [46] Question: M&A activity in the leasing sector - Management sees ongoing consolidation in the industry as logical and is open to considering opportunities if they arise, although growth has been organic to date [48][49] Question: Dividend policy and CapEx targets - Management is comfortable with increasing the dividend payout to 40% of net profit after tax and has the capacity to leverage up to 3.5 times debt to equity if needed [54][56]

Financial Data and Key Metrics Changes - Revenue increased to HKD 85.85 billion, up 19.9% year-over-year [1] - Profit before investment property revaluation was HKD 11.96 billion, or HKD 3.42 per share, up 2.7% [1] - Profit attributable to shareholders decreased to HKD 10.85 billion, or HKD 3.10 per share, down 20.3% due to an investment property revaluation deficit of HKD 1.11 billion [1][2] - Final dividend declared was HKD 1.39, leading to a full-year dividend of HKD 1.78, up 2.3% from last year [2] Business Line Data and Key Metrics Changes - Property sales revenue rose to HKD 20.545 billion, up 105.3%, with profit contribution after provisions at HKD 2.7 billion, up 24% [3] - Property rental revenue slightly decreased by 1.9% to just over HKD 6 billion, with profit contribution at HKD 4.6 billion, down 2.2% [4] - Hotel and service suite operations generated HKD 4.6 billion in revenue, up 6%, with profit contribution stable at 0.4% [7] - The pub division recorded a revenue increase of 7.4% to HKD 26.23 billion, but profit contribution post-impairment fell to HKD 313 million, down 41.9% [9] Market Data and Key Metrics Changes - Geographic revenue contribution: 31% from Hong Kong, 11% from mainland China, and 58% from overseas [2] - The company has a total land bank of 122 million sq ft, with 27 million sq ft in Hong Kong, 61 million sq ft on the mainland, and 34 million sq ft overseas [25] Company Strategy and Development Direction - The company aims to focus on creating long-term value for shareholders and becoming a better operator across all business segments [33] - The proposed sale of UK Power Networks is seen as an opportunity to unlock value and strengthen the balance sheet [34] - The company is cautious about investments, prioritizing opportunities that meet minimum return thresholds while managing risks [35] Management's Comments on Operating Environment and Future Outlook - The geopolitical environment is volatile, and inflation is expected to rise, impacting interest rates [32] - Management noted that transaction volumes in the Hong Kong property market are improving, indicating a potential bottoming out of the market [36] - The company is optimistic about the performance of its social infrastructure portfolio, which has helped offset challenges in the Hong Kong and mainland markets [46] Other Important Information - The company achieved a 38% reduction in Scope 1 and 2 emissions from 2019 levels, reflecting its commitment to sustainability [28] - The company has a net debt of only HKD 9.7 billion, with a net debt to net total capital ratio of approximately 2.3% [25] Q&A Session Summary Question: What is the rationale behind the proposed sale of UK Power Networks? - The sale is driven by an attractive offer for a quality asset, which will unlock value for shareholders and strengthen the balance sheet [34] Question: Why were there few deals in Hong Kong last year? - The company is keen on investing in Hong Kong but focuses on opportunities that meet return thresholds without a must-win mentality [35] Question: What is the outlook for Hong Kong's property market? - Recent improvements in transaction volumes suggest the market may be bottoming out, with confidence in upcoming project launches [36] Question: How should development margins be viewed? - Development margins are under pressure due to selling expensive inventory from the past, with a conservative approach to provisions [39] Question: What is the impact of increased stamp duty on luxury units? - The impact is expected to be minimal as the super luxury market is a small segment of the overall market [40] Question: How will the company drive sales in the mainland market? - The company is seeing increased interest from Hong Kong buyers in mainland properties, which is a positive sign [41] Question: What is the strategy for the office market? - The sentiment in the office market is improving, and the company plans to market its properties effectively as the market recovers [42] Question: Will there be a correlation between dividends and recurrent income? - The company will continue to link dividend payouts to overall financial results and outlook, remaining opportunistic regarding stock buybacks [62]

Financial Data and Key Metrics Changes - Revenues for 2025 increased by 6% compared to 2024, with 2% attributed to foreign exchange differences and 4% being underlying growth, amounting to approximately HKD 19 billion [2][3] - Net earnings on an underlying basis rose by 7%, equating to an increase of HKD 1.5 billion compared to 2024 [3] - The underlying EBITDA increased by HKD 9.4 billion, approximately 9%, with 7% being fully underlying and 2% driven by favorable foreign exchange [5][6] - The consolidated total net debt to net total capital ratio improved to 13.9% from 16.2% at the end of 2024 [6][22] Business Line Data and Key Metrics Changes - Ports division revenue reached HKD 48.9 billion, an 8% increase over 2024, with throughput increasing by 3% to 90.1 million TEUs [24] - Retail division revenue grew by 10% to HKD 209.3 billion, with EBITDA increasing by 11% to HKD 18.2 billion [30][31] - CK Hutchison Group Telecom saw underlying EBITDA grow by 6% in local currency, with U.K. operations experiencing a 19% EBITDA growth [40][41] Market Data and Key Metrics Changes - The ports division's geographical diversification helped mitigate impacts from geopolitical risks, with expectations of trade route shifts due to conflicts in the Middle East [27][28] - Retail operations in the U.K. and Europe showed leading sales and margin growth, while Health and Beauty Asia provided significant growth opportunities [70] Company Strategy and Development Direction - The company aims to unlock asset value and strengthen its financial position through strategic corporate actions, such as the disposal of UKPN [54][56] - There is a focus on achieving scale in operations to enhance productivity and cost improvements, particularly in the context of AI advancements [55] - The company is committed to maintaining financial resilience while exploring value-accretive transactions and sustainable growth opportunities [67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the group's ability to navigate challenges posed by geopolitical tensions and economic volatility, emphasizing the importance of maintaining a strong financial profile [66][67] - The ports division is expected to face slower global trade growth but is well-positioned to adapt due to its diversified portfolio [27][28] - The retail division is focusing on enhancing online capabilities and optimizing store networks to drive growth despite economic headwinds [34] Other Important Information - The group's cash and liquid assets amounted to HKD 151 billion, providing a strong liquidity position amid volatile markets [23] - The average cost of debt decreased from 3.6% in 2024 to 3.3% in 2025, reflecting improved financial management [22][23] Q&A Session Summary Question: What are the drivers behind recent corporate actions? - The recent corporate actions reflect a consistent strategy to unlock asset value and strengthen financial position, with a focus on recycling capital efficiently [54] Question: What are the group's thoughts on the stake in Cenovus? - The energy sector has historically been a good asset despite volatility, and the scale of Cenovus post-MEG acquisition enhances its stability [57][58] Question: What impacts are expected on HPH's operations from escalating conflict in the Middle East? - Vessel calls at UAE ports are expected to reduce, but there has been an increase in requests for ad hoc calls at other ports, mitigating overall impact [60][61] Question: What is the progress on the larger transaction in Panama? - Ongoing legal proceedings are being addressed, and discussions on the larger transaction continue, with the business performing well despite challenges [64][65] Question: What is the capital allocation strategy moving forward? - The company aims to maintain financial resilience while exploring value-accretive opportunities, with dividend payouts and share buybacks being board decisions [66][67]

Financial Data and Key Metrics Changes - Revenues for 2025 increased by 6% compared to 2024, with 2% attributed to foreign exchange differences and 4% representing underlying growth, amounting to approximately HKD 19 billion [2][3] - Net earnings on an underlying basis rose by 7%, translating to an increase of about HKD 1.5 billion compared to 2024 [3] - The underlying EBITDA increased by HKD 9.4 billion, approximately 9%, with 7% being fully underlying and 2% driven by favorable foreign exchange tailwinds [5] - The consolidated total net debt to net total capital ratio improved to 13.9% from 16.2% at the end of 2024 [6][23] - Operating free cash flow increased by 4% to HKD 40.5 billion [13] Business Line Data and Key Metrics Changes - Ports division revenue reached HKD 48.9 billion, an 8% increase over 2024, with throughput increasing by 3% to 90.1 million TEUs [27] - Retail division revenue grew by 10% to HKD 209.3 billion, with EBITDA increasing by 11% to HKD 18.2 billion [35][36] - CK Hutchison Group Telecom saw underlying EBITDA grow by 6% in local currency, with UK operations benefiting from the merger with Vodafone UK [50] Market Data and Key Metrics Changes - The ports division's EBITDA increased by 8% in reported currency, with significant contributions from Europe and Asia [27][28] - Retail division's EBITDA split showed 24% from Asia and 76% from Europe, indicating a strong performance in both regions despite challenges in specific markets [36][38] Company Strategy and Development Direction - The company aims to unlock asset value and strengthen its financial position through strategic corporate actions, such as the disposal of UK Power Networks [67] - There is a focus on achieving scale in operations to enhance productivity and cost efficiency, particularly in the context of AI advancements [68] - The company is committed to maintaining a strong financial profile while exploring value-accretive transactions [85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ports division's resilience despite geopolitical risks and trade tensions, expecting to mitigate impacts through geographical diversification [31][32] - The retail division is poised for growth despite economic headwinds, with strategies in place to enhance product offerings and optimize store networks [39] - The telecommunications division is expected to deliver stable performance through customer base growth and cost efficiency initiatives following the merger [50] Other Important Information - The group's cash and liquid assets amounted to HKD 151 billion, providing a strong liquidity position amid volatile financial markets [24] - The average cost of debt decreased from 3.6% in 2024 to 3.3% in 2025, reflecting improved financial management [24] Q&A Session Summary Question: What are the drivers behind recent corporate actions? - The recent corporate actions reflect a consistent strategy to unlock asset value and strengthen financial position, with a focus on recycling capital efficiently [67] Question: What are the group's thoughts on the stake in Cenovus? - The energy sector has been a good asset despite volatility, with Cenovus's recent acquisition enhancing production levels significantly [70] Question: What impacts are expected from the escalating conflict in the Middle East? - Vessel calls at UAE ports are expected to reduce, but there has been an increase in requests for ad hoc calls at other ports, mitigating overall impact [78] Question: What is the update on the Panama transaction? - Ongoing legal proceedings are in place to protect the group's interests, and discussions regarding the larger transaction continue [81] Question: What is the capital allocation strategy post-asset sale? - The focus remains on maintaining financial resilience and exploring value-accretive opportunities, with dividend payouts and share buybacks being board decisions [85]