Financial Data and Key Metrics Changes - The company reported a loss attributable to shareholders of HKD 16.3 billion for FY 2025, with a second-half loss of approximately HKD 9.7 billion, which exceeded the first half's loss of HKD 6.6 billion, primarily due to noncash provisions and one-off losses [18][19][71] - Core operating profit decreased by 13% year on year, while segment results declined by 4% year on year [17] - Total debt decreased by HKD 5.7 billion from HKD 151.6 billion in June 2024 to HKD 146 billion in June 2025, and net debt fell by HKD 4.5 billion [22][26] Business Line Data and Key Metrics Changes - The property business achieved annual sales of HKD 26 billion, meeting its target despite market uncertainties [6] - The investment properties segment recorded a 24% year-on-year growth in overall segment results, with K11 segment results also growing by 24% [45] - In Hong Kong, attributable contracted sales for FY 2025 reached HKD 11 billion, with strong performance from multiple projects [28] Market Data and Key Metrics Changes - The company noted improvements in market sentiment and transaction volume for Hong Kong real estate in the latter half of FY 2025, although property prices remained weak [19] - In Mainland China, the group’s contracted sales reached RMB 14 billion, exceeding adjusted annual targets [41] Company Strategy and Development Direction - The company will continue to focus on its core business, actively manage finances, and enhance operational efficiency [8] - Plans include advancing asset disposal, enhancing rental returns, and unlocking the value of farmland holdings [13][14] - The company aims to leverage market improvements and maintain prudent operations amid ongoing uncertainties [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and emphasized the importance of cash flow recovery and debt reduction [9][60] - The company acknowledged the impact of interest rate cuts on financing costs, projecting significant savings with further rate reductions [87] Other Important Information - The company has temporarily suspended dividend payments to preserve cash [15][54] - A significant refinancing of HKD 88.2 billion was completed, enhancing liquidity and extending loan maturities [24][55] Q&A Session All Questions and Answers Question: What are the company's concrete goals for debt reduction and timetable? - The company aims for steady progress in reducing total debt and net debt, having already achieved initial success in FY 2025 [58][59] Question: When will the company resume payments for deferred perpetual bonds? - The company will adhere to contractual terms and make announcements at appropriate times regarding coupon payments [61][62] Question: How does the new bank loan align with the goal of reducing indebtedness? - The new bank loan will be used to meet debt-related needs, and the company has successfully controlled net debt, indicating improved cash flow [65][66] Question: Will the majority shareholder consider injecting capital? - There are currently no plans for capital injection from the majority shareholder [68] Question: What is the company's outlook on achieving profitability? - Management indicated that profitability improvements depend on market conditions and ongoing operational efficiency enhancements [71][72] Question: How will recent rate cuts affect interest expenses? - A 1% decrease in interest rates could save the company around HKD 800 million in annual interest expenses [87]

Financial Data and Key Metrics Changes - The Adjusted Operating Profit (AOP) for FY2025 increased by 7% year on year to $4.5 billion, and excluding two businesses, it rose by 9% to $4.5 billion [10][11] - Profit attributable to shareholders increased by 4% year on year to $2.2 billion [17] - Cash on hand amounted to $20.2 billion, with total available liquidity close to $30 billion [18] - The net gearing ratio was 37%, remaining stable compared to the previous year [18][21] Business Line Data and Key Metrics Changes - Roads segment AOP decreased by 8% year on year to $1.4 billion, but excluding four roads with expired concessions, it increased by 1% [11][30] - Financial services segment AOP rose by 29% to $1.24 billion, driven by the rebranding and expansion of services [11][30] - Logistics business AOP increased by 3% to $740 million, with occupancy rates in Hong Kong logistics properties at 80% [11][36] - Construction segment AOP was $790 million, slightly decreasing by 7% when excluding YQ due to project completions [11] Market Data and Key Metrics Changes - The proportion of government-related projects in the construction segment increased from 40% to 61% [14][41] - The backlog of contracts increased by 24% to $38 billion, indicating a strong pipeline for future work [40] Company Strategy and Development Direction - The company is focusing on portfolio optimization, including divestments and acquisitions, to strengthen its business segments [6][9] - The financial services segment aims to leverage the Chow Tai Fook brand to enhance wealth management offerings [9][30] - The logistics segment will target undervalued assets in the Greater Bay Area and Yangtze River Delta [8][13] - The construction segment will continue to focus on government projects, especially in light of recent policy initiatives [14][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining stable results despite geopolitical tensions and economic challenges [9] - The company anticipates continued growth in various segments, particularly in financial services and logistics, to offset potential declines in toll road revenues [70] - The management emphasized the importance of strategic acquisitions to enhance cash flow and profitability [70] Other Important Information - The company maintained a progressive dividend policy, with total dividends for the year amounting to $0.95 per share [17][23] - The company has issued convertible bonds to enhance liquidity and restore public float [20][24] Q&A Session Summary Question: Updates on the roads segment and potential disposals - Management indicated that while there have been approaches regarding toll road assets, there are no immediate plans for disposals unless the price is right [57] Question: Impact of not investing further in toll roads on the dividend policy - Management reassured that the next major toll road concession expiry is in 2029, and they expect to replenish lost cash flow through growth in other segments [70][71] Question: Logistics occupancy targets and market conditions - Management acknowledged that reaching 90% occupancy in Hong Kong will be challenging but expressed confidence in achieving 85% [61][64] Question: Strategic value of Sunshine Esther acquisition - Management highlighted that the acquisition enhances competitive bidding capabilities and allows for more accurate cost calculations in tenders [66][68]

Financial Data and Key Metrics Changes - The Adjusted Operating Profit (AOP) for FY 2025 increased by 7% year on year to $4.5 billion, and excluding the Free Duty and YQ businesses, AOP rose by 9% to $4.5 billion [10][18] - Adjusted EBITDA increased by 1% to $7.3 billion, while profit attributable to shareholders rose by 4% to $2.2 billion [18] - The total dividend for the year amounted to $0.95 per share, maintaining an attractive dividend yield of 8.3% based on the latest closing price [18][19] - Cash on hand was $20.2 billion, with total available liquidity close to $30 billion, indicating a healthy financial position [19][20] Business Segment Data and Key Metrics Changes - The financial services segment, rebranded from insurance, saw AOP increase by 29% to $1.24 billion [11][30] - The logistics business AOP rose by 3% to $740 million, while the construction segment reported AOP of $790 million, slightly decreasing by 7% when excluding YQ [11][12] - The facilities management segment reported AOP of $89 million, with a 16% increase when excluding Free Duty [11] - Strategic investments surged over 1,000% to $237 million, reflecting aggressive portfolio optimization [12] Market Data and Key Metrics Changes - The occupancy rate for logistics properties in Hong Kong decreased from 96% to 80%, attributed to the renewal of a major client's lease [35] - The occupancy rate for the seven logistics properties in China was maintained at 87%, while the occupancy rate for the Suzhou property dropped to 40% due to tenant termination [35][36] - The construction segment's backlog increased by 24% to $38 billion, with newly awarded contracts rising by 9% to $23.9 billion [39] Company Strategy and Development Direction - The company aims to enhance its diversified business portfolio through acquisitions and disposals, focusing on the fast-growing wealth management business [3][9] - The logistics segment will target undervalued assets in the Greater Bay Area and Yangtze River Delta, seeking properties with strong cash flow [8][13] - The construction segment will focus on government-related projects, which now account for 61% of the total projects in progress [16][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining stable results despite geopolitical tensions and economic challenges, highlighting operational excellence across diversified business lines [9][12] - The financial services segment is expected to leverage the Chow Tai Fook brand to enhance service delivery and expand its wealth management platform [9][30] - The company anticipates continued growth in AOP and cash flow, with strategic acquisitions planned to replenish profits lost from expiring toll road concessions [67][68] Other Important Information - The company has maintained a progressive dividend policy for 22 consecutive years, with a commitment to consistent dividend distribution [10][23] - The company has shifted a substantial portion of its debt to lower-cost renminbi borrowing, resulting in a decline in average borrowing costs from 4.7% to 4.1% [20][21] - The company has implemented an ESG strategy, achieving a 19% reduction in Scope 1 and 2 emissions compared to FY 2023 [47][49] Q&A Session Summary Question: Updates on the roads and potential disposals - Management indicated that while there have been inquiries about toll road assets, there are no immediate plans for disposal unless the price is right [56] Question: Impact of not investing further in toll roads - Management confirmed that without further investment, the concession period will decrease, but they are confident in replenishing profits through other business segments [67][68] Question: Logistics occupancy targets - Management expressed confidence in reaching an occupancy rate of 85% in Hong Kong, with a longer-term goal of exceeding 90% [60][62] Question: Strategic value of Sunshine Esther acquisition - Management highlighted that integrating Sunshine Esther into the construction group enhances competitive bidding capabilities, particularly for design and build contracts [63][65]

Financial Data and Key Metrics Changes - The Adjusted Operating Profit (AOP) for FY25 increased by 7% year on year to $4.5 billion, and excluding the Free Duty and YQ businesses, AOP rose by 9% to $4.5 billion [10][18] - Adjusted EBITDA increased by 1% to $7.3 billion, while profit attributable to shareholders rose by 4% year on year to $2.2 billion [18] - The total dividend for the year amounted to $0.95 per share, maintaining an attractive dividend yield of 8.3% based on the latest closing price [18][19] Business Segment Data and Key Metrics Changes - The financial services segment, rebranded from insurance, saw AOP increase by 29% to $1.24 billion [11][32] - The logistics business AOP rose by 3% to $740 million, while the construction segment reported AOP of $790 million, a slight decrease of 7% when excluding YQ [11][12] - The facilities management segment recorded AOP of $89 million, with a 16% increase when excluding Free Duty [11] Market Data and Key Metrics Changes - The occupancy rate for ATL in Hong Kong decreased to 80%, but the average rental increased by 8% [37] - The occupancy rate for the seven logistics properties was maintained at 87%, while the occupancy rate for the Shuzhou property decreased to 40% due to tenant issues [37][39] - The construction segment's backlog increased by 24% to $38 billion, with newly awarded contracts rising by 9% to $23.9 billion [40] Company Strategy and Development Direction - The company aims to enhance its financial services segment by leveraging the Chow Tai Fook brand and expanding its wealth management platform [9][13] - The logistics segment will focus on acquiring undervalued assets in the Greater Bay Area and Yangtze River Delta [8][39] - The construction segment will prioritize government-related projects, which now account for 61% of the total projects in progress [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining stable results despite macroeconomic headwinds, with a focus on optimizing the business portfolio [9][23] - The company plans to continue its progressive dividend policy and aims to enhance shareholder value through strategic acquisitions and optimizations [10][24] - Management highlighted the importance of domestic consumption recovery for the logistics segment's performance in the coming year [65] Other Important Information - The company has maintained a strong cash position with $20.2 billion in cash on hand and a net gearing ratio of 37% [19][22] - The company has issued convertible bonds and exchangeable bonds to enhance liquidity and public float [25][28] - The ESG initiatives have progressed, with 39% of bonds and loan facilities coming from green financing and a 19% reduction in Scope 1 and 2 emissions [48][50] Q&A Session Summary Question: Updates on the roads segment and potential disposals - Management indicated that while there have been inquiries about toll road assets, there are no immediate plans for disposals unless the price is right [58] Question: Impact of not investing further in toll roads on the dividend policy - Management reassured that continued growth in other business segments would compensate for any potential loss in cash flow from toll roads, maintaining the dividend policy [70][71] Question: Insights on the construction business and Sunshine Esther acquisition - Management explained that the acquisition enhances competitive bidding capabilities and allows for more accurate cost calculations in tenders [66][68]

Financial Data and Key Metrics Changes - The Adjusted Operating Profit (AOP) for FY2025 increased by 7% year on year to $4.5 billion, and excluding two businesses, it rose by 9% to $4.5 billion [9][16] - Profit attributable to shareholders increased by 4% year on year to $2.2 billion [16] - Cash on hand amounted to $20.2 billion, with total available liquidity close to $30 billion [17] - The net gearing ratio was 37%, remaining stable compared to the previous year [17][20] Business Segment Data and Key Metrics Changes - Roads segment AOP decreased by 8% year on year to $1.4 billion, but excluding four roads with expired concession periods, AOP increased by 1% [10][29] - Financial services segment AOP increased by 29% to $1.24 billion, driven by the rebranding and expansion of services [10][30] - Logistics business AOP rose by 3% to $740 million, with occupancy rates in Hong Kong logistics properties targeted to increase from 80% to above 85% [10][36] - Construction segment AOP was $790 million, with a 24% increase in backlog to $38 billion [10][41] Market Data and Key Metrics Changes - The occupancy rate for ATL in Hong Kong decreased from 96% to 80% due to tenant changes, but is expected to recover [36] - The average rental for logistics properties increased by 8% [36] - The proportion of government-related projects in the construction segment increased from 40% to 61% [13][42] Company Strategy and Development Direction - The company aims to enhance its financial services segment by leveraging the Chow Tai Fook brand and expanding its wealth management platform [8][12] - The logistics segment will focus on acquiring undervalued assets in the Greater Bay Area and Yangtze River Delta [12][39] - The construction segment will prioritize government-related projects, especially in light of recent policy initiatives [13][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining stable results despite macroeconomic headwinds and emphasized the importance of operational excellence across diversified business portfolios [7][8] - The company plans to continue optimizing its portfolio and exploring creative acquisitions to sustain growth [8][71] - Management highlighted the potential for growth in the financial services and logistics segments, driven by strong cash flow generation [20][71] Other Important Information - The company maintained a sustainable and progressive dividend policy, with a total dividend of $0.95 per share for the year [16][21] - The company has issued convertible bonds to enhance liquidity and restore public float [19][23] - The company reported a significant increase in strategic investments, up over 1,000% to $237 million [10] Q&A Session Summary Question: Updates on the roads segment and potential disposals - Management indicated that while there have been inquiries about toll road assets, there are no immediate plans for disposals unless the price is right [58] Question: Impact of not investing further in toll roads on the concession period - Management acknowledged that without further investment, the concession period will decrease, but they are confident in replenishing profit and cash flow through other segments [71] Question: Challenges in increasing logistics occupancy from 85% to 90% - Management noted that while reaching 90% occupancy is challenging, they are optimistic about recovering occupancy rates due to strategic positioning and market conditions [62] Question: Strategic value added by the acquisition of Sunshine Esther - Management explained that the acquisition enhances competitive advantage in project bidding, particularly for design and build contracts, allowing for more accurate cost calculations [66][68]

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]

Financial Data and Key Indicator Changes - The bank achieved a net operating income of RMB 169.9 billion, a year-on-year decrease of 1.73% [5] - Net profit attributable to shareholders was RMB 74.9 billion, reflecting a year-on-year increase of 0.25% [5] - Return on average assets (ROAA) and return on average equity (ROAAE) were 1.21% and 13.85% respectively, maintaining industry-leading levels [6] - Net interest margin (NIM) was 1.88%, a decrease of 12 basis points year-on-year [6] - Non-interest income was RMB 63.8 billion, a year-on-year decrease of 6.77% [6] Business Line Data and Key Indicator Changes - Retail loans accounted for 51.68% of total loans, a decrease of 1.23 percentage points [10] - Net operating income from retail business accounted for 56.6% of total, representing a year-on-year increase of 1.12 percentage points [11] - Wealth management fee and commission income increased by 11.89% year-on-year, reversing a downward trend since 2022 [6] Market Data and Key Indicator Changes - Total assets amounted to RMB 12.66 trillion, an increase of 4.16% [7] - Total loans and advances reached RMB 7.12 trillion, up by 3.31% [8] - Total deposits from customers were RMB 9.42 trillion, an increase of 3.58% [9] Company Strategy and Development Direction - The bank will continue to advance its value creation strategy, focusing on quality, profitability, and scale [31] - Emphasis will be placed on enhancing asset and liability management and optimizing resource allocation [32] - The bank aims to strengthen its retail finance position and expand its wealth management business [32][33] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges such as low interest rates and intensified competition but expressed confidence in achieving steady progress in the second half of the year [40] - The bank plans to balance business development across different lines and improve wealth and fee-based income [40] - Management highlighted the importance of technology and AI in enhancing operational efficiency and customer service [46][48] Other Important Information - The bank's capital adequacy ratios showed slight declines, with CET1 CAR at 14%, Tier 1 CAR at 17%, and total CAR at 18.56% [11] - The non-performing loan (NPL) ratio was 0.93%, a decrease of 0.02 percentage points [12] Q&A Session Summary Question: Can CMB continue its positive growth trend in the second half? - Management expressed confidence in maintaining steady progress and achieving budget goals despite challenges in the first quarter [39] Question: How will CMB carry out its retail strategy amidst challenges? - Management emphasized focusing on deposit and settlement services, enhancing technology integration, and applying AI to improve efficiency in retail banking [44][46] Question: What is the outlook for NIM and funding costs? - Management noted that while NIM is under pressure, it remains higher than the industry average, and efforts will be made to manage funding costs effectively [56][58] Question: How does the anti-evolution policy impact the bank's operations? - Management indicated that the anti-evolution policy aims to stabilize competition and improve asset quality, which is beneficial for the bank's sustainable development [74][75] Question: What opportunities exist in corporate finance amidst market recovery? - Management highlighted the bank's strong customer base and unique financing perspectives, indicating potential growth in M&A and restructuring opportunities [78][80]

Financial Data and Key Indicators Changes - The bank achieved a net operating income of RMB 169.9 billion, a year-on-year decrease of 1.73% [6] - Net profit attributable to shareholders was RMB 74.9 billion, reflecting a year-on-year increase of 0.25% [6] - Return on average assets (ROAA) and return on average equity (ROAAE) were 1.21% and 13.85% respectively, maintaining industry-leading levels [7] - Net interest margin (NIM) was 1.88%, a decrease of 12 basis points year-on-year [7] - Non-interest income was RMB 63.8 billion, a year-on-year decrease of 6.77% [7] - Cost-to-income ratio remained stable at 30.11% [8] Business Line Data and Key Indicators Changes - Retail loans accounted for 51.68% of total loans, a decrease of 1.23 percentage points [12] - Net operating income from retail business accounted for 56.6% of total, representing a year-on-year increase of 1.12 percentage points [13] - Wealth management fee and commission income increased by 11.89% year-on-year, reversing a downward trend since 2022 [7] - The balance of retail wealth management products (WMP) increased by 8.84% [25] Market Data and Key Indicators Changes - Total assets amounted to RMB 12.66 trillion, an increase of 4.16% [8] - Total loans and advances reached RMB 7.12 trillion, up by 3.31% [9] - Total deposits from customers were RMB 9.42 trillion, an increase of 3.58% [11] - The number of retail customers increased by 2.86% to 216 million [16] Company Strategy and Development Direction - The bank aims to enhance refined management practices and optimize customer base [35] - Focus on differentiated development to expand core competitive advantages, particularly in retail finance [36] - Plans to enhance global and integrated operation capabilities, particularly in overseas markets [38] - Emphasis on innovation-driven growth and digital transformation, leveraging AI technology [39] Management Comments on Operating Environment and Future Outlook - The banking industry faces challenges such as low interest rates and intensified competition, but China's economy shows signs of recovery [35] - Management expressed confidence in achieving steady progress in the second half of the year despite external pressures [44] - The bank will continue to balance business development across different lines and improve cost control [44] Other Important Information - The bank's capital adequacy ratio experienced a slight decline, with CET1 CAR at 14% [13] - Non-performing loan (NPL) ratio was 0.93%, a decrease of 0.02 percentage points [14] - The bank's overseas institutions saw total assets increase by 6.56% [28] Q&A Session All Questions and Answers Question: Can CMB continue to have a positive growth trend in the second half? - Management indicated that while the first quarter faced significant pressure, the second quarter showed improvement, and they expect steady progress in the second half [44] Question: How will CMB carry out its retail strategy amidst challenges? - Management highlighted three major areas of focus: enhancing settlement and clearing services, integrating AI into retail banking, and optimizing team structures to improve efficiency [48][50] Question: How will the bank manage NIM in the current interest rate environment? - Management noted that while they face pressure on NIM, they maintain a leading position in the industry and are focused on managing costs and optimizing asset allocation [60][62] Question: What are the implications of the anti-evolution policy for the bank? - Management explained that the anti-evolution policy aims to stabilize competition and improve asset quality, which they believe will benefit the bank's operations [81]

Financial Data and Key Indicators Changes - The bank achieved a net operating income of RMB 169.9 billion, a year-on-year decrease of 1.73% [6] - Net profit attributable to shareholders was RMB 74.9 billion, reflecting a year-on-year increase of 0.25% [6] - Return on average assets (ROAA) and return on average equity (ROAAE) were 1.21% and 13.85% respectively, maintaining industry-leading levels [7] - Net interest margin (NIM) was 1.88%, a decrease of 12 basis points year-on-year [7] - Non-interest income was RMB 63.8 billion, a year-on-year decrease of 6.77% [7] - Cost-to-income ratio remained stable at 30.11% [8] Business Line Data and Key Indicators Changes - Retail loans accounted for 51.68% of total loans, a decrease of 1.23 percentage points [12] - Net operating income from retail business accounted for 56.6% of total, representing a year-on-year increase of 1.12 percentage points [13] - Wealth management fee and commission income increased by 11.89% year-on-year, reversing a downward trend since 2022 [7] - The balance of retail wealth management products (WMP) increased by 8.84% [25] Market Data and Key Indicators Changes - Total assets amounted to RMB 12.66 trillion, an increase of 4.16% [8] - Total loans and advances reached RMB 7.12 trillion, up by 3.31% [9] - Total deposits from customers were RMB 9.42 trillion, an increase of 3.58% [11] - The number of retail customers increased by 2.86%, totaling 216 million [16] Company Strategy and Development Direction - The bank aims to advance its value creation strategy, focusing on quality, profitability, and scale [5] - Plans to enhance refined management practices and optimize customer base [35] - Emphasis on differentiated development in retail finance and wealth management [36] - Focus on global and integrated operations, particularly in overseas markets [38] Management Comments on Operating Environment and Future Outlook - The banking industry faces challenges such as low interest rates and intensified competition, but China's economy shows signs of recovery [35] - Management expressed confidence in achieving steady progress in the second half of the year despite external pressures [44] - The bank will continue to implement strategies to manage costs and improve non-interest income [44] Other Important Information - The bank's capital adequacy ratio experienced a slight decline, with CET1 CAR at 14% [13] - Non-performing loan (NPL) ratio was 0.93%, a decrease of 0.02 percentage points [14] - The bank is enhancing its digital transformation and technology capabilities, implementing AI across various business areas [32] Q&A Session Summary Question: Can CMB continue its positive growth trend in the second half? - Management believes that despite pressures in the first quarter, the second quarter showed improvement and expects steady progress in the second half [44] Question: How will CMB carry out its retail strategy amidst challenges? - Management highlighted a focus on deposit and settlement services, technology integration, and AI application to enhance retail banking [48][49] Question: How will the anti-evolution policy affect CMB's NIM and asset quality? - Management indicated that the anti-evolution policy aims to stabilize competition and improve asset quality, which could benefit the bank's NIM [79] Question: What opportunities does the recovery in the capital market present for corporate finance? - Management noted that CMB has a strong customer base and unique financing perspectives, positioning it well to capitalize on opportunities in corporate finance [81]