Financial Data and Key Metrics Changes - The group reported net revenues of €2,740 million, up 9% versus H1 2024 at constant FX, with a drag from FX of 160 basis points, leading to an increase of 8% at current exchange rates [19] - Retail sales for the period reached €2,450 million, up 10% versus H1 2024 at constant FX [19] - EBIT adjusted reached €619 million in H1 2025, with a margin of 22.6%, showing steady profitability versus H1 2024 [20] - Net income reached €386 million, in line with the same period last year [25] - Cash flow from operations reached €696 million, and the net cash position stood at €352 million [20][28] Business Line Data and Key Metrics Changes - Retail sales for the Prada brand were down 2% in the semester, while Miu Miu saw a 49% retail sales growth in the semester [21][22] - Wholesale was down 1% versus H1 2024, impacted by some degree of phasing [20] - Churches brand reported a 4% increase in retail sales in the semester [22] Market Data and Key Metrics Changes - Retail sales in Asia Pacific were up 10% in the semester, while Europe was up 9%, with Q2 impacted by lower tourist spending [23] - The Middle East delivered the best performance of the semester, up 26% in H1 [24] - Japanese retail sales decelerated against exceptionally high tourist flows in 2024, particularly in Q2 [24] Company Strategy and Development Direction - The company is focused on maintaining strong relationships with consumers and investing in new products and collections [6][10] - There is an emphasis on elevating the customer experience and enhancing the in-store experience [20][26] - The company aims to navigate the resetting luxury market by offering unique and personalized products [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a cyclical downturn and geopolitical factors affecting tourism [7][8] - There is a cautious optimism regarding the second half of the year, with expectations of improved performance despite ongoing uncertainties [30][42] - The management is focused on long-term growth and maintaining brand desirability through strategic investments [20][25] Other Important Information - Significant investments were made in sustainability initiatives, including lower impact raw materials and diversity and inclusion programs [16][17] - The company is preparing for the integration of Versace, with expectations for completion between September and November [56] Q&A Session Summary Question: Insights on American and Chinese clusters in Q2 - Chinese demand was subdued but stable, while North American demand improved slightly [38] Question: Outlook for Q3 and easier comps - Q3 is expected to be softer, but there are easier comps compared to Q2 [41][42] Question: Prada brand's new collection and pricing strategy - The focus is on maintaining credibility at higher price points while offering a balanced collection [50][51] Question: Operating leverage in H1 - The company maintained stable profitability despite increased investments in customer-facing activities [53][54] Question: Versace acquisition timeline and management plans - The acquisition is expected to finalize between September and November, with careful management of the brand's identity [56] Question: Market share gains for the Prada brand - The brand is focused on maintaining its creative identity and enhancing retail KPIs to gain market share [64] Question: Future growth for Miu Miu - The focus remains on leather goods, with plans for store expansions and maintaining brand positioning [68][70] Question: Gross margin sustainability - The gross margin is expected to remain around 80%, supported by a positive sales mix [72] Question: Profitability comparison between Miu Miu and Prada - Miu Miu is on a positive trajectory but still requires investment to catch up with Prada [110] Question: Drivers of organic growth for the group - Growth will depend on geographical opportunities and product category expansions, particularly in leather goods [114]

Financial Data and Key Metrics Changes - The company reported net revenues of €2,740 million, up 9% versus H1 2024 at constant FX, with a drag from FX of 160 basis points, leading to an increase of 8% at current exchange rates [17] - Retail sales reached €2,450 million, up 10% versus H1 2024 at constant FX [18] - EBIT adjusted reached €619 million in H1 2025, with a margin of 22.6%, showing steady profitability compared to H1 2024 [19] - Net income for the period was €386 million, in line with the same period last year [24] - Cash flow from operations reached €696 million, and the net cash position stood at €352 million [19][26] Business Line Data and Key Metrics Changes - Retail sales for the Prada brand were down 2% in the semester, primarily impacted by Japan and Europe due to lower tourist flows [20] - Miu Miu experienced a 49% retail sales growth in the semester and 40% in Q2, now contributing to 32% of group retail sales compared to 23% in H1 2024 [21] - Churches brand saw a 4% increase in retail sales for the semester and 6% in Q2 [21] Market Data and Key Metrics Changes - Retail sales in Asia Pacific were up 10% in the semester, with stable trends between quarters [22] - Europe saw a 9% increase, with Q2 impacted by lower tourist spending [22] - The Americas showed improvement in Q2, with both local and traveler spending increasing [22] - The Middle East delivered the best performance, up 26% in H1 [23] Company Strategy and Development Direction - The company is focused on maintaining strong brand desirability and investing in new products and collections [8][9] - There is an emphasis on enhancing customer relationships and hospitality, exemplified by the opening of a new men's store on Fifth Avenue [9] - The company is navigating a resetting industry and is committed to long-term growth despite current challenges [28][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a cyclical downturn led by tourism and a resetting luxury market after years of growth [6][7] - There is cautious optimism about the second half of the year, with expectations of improved performance as comparisons ease [39][40] - The company is focused on maintaining full-price sales and improving operational efficiencies [30] Other Important Information - The company is advancing its environmental strategy, including lower impact raw materials and responsible chemical management [15] - Significant investments have been made in diversity and inclusion initiatives, as well as ocean literacy and preservation efforts [15][16] Q&A Session Summary Question: Insights on American and Chinese clusters in Q2 - The Chinese market was softer than Q1, with subdued local demand and weaker travel transactions. North America showed low single-digit growth with improving local demand but weakening traveler spending [34][35] Question: Outlook for Q3 and easier comparisons - Q3 is expected to be softer, with tourism traffic likely to break even in August. There are easier comparisons in Q3 versus Q2 [39][40][118] Question: Prada brand's new collection and pricing strategy - The focus is on maintaining credibility at higher price points while ensuring a well-balanced collection. The company aims to improve customer engagement and hospitality [46][47] Question: Operating leverage in H1 and expectations for H2 - The company is pleased with the trajectory but emphasizes the importance of ongoing investments for long-term growth, expecting to maintain EBIT growth if top-line growth continues [50][52] Question: Versace acquisition timeline and management plans - The acquisition is expected to finalize between September and November, with careful management of the brand's identity and positioning [54][55] Question: Retail KPIs and areas for improvement - The company acknowledges a gap in retail culture and commercial attitude compared to the best in the industry, indicating ongoing efforts to improve customer interaction and service [74][75] Question: Trends in product categories and pricing - Ready-to-wear and shoes have been the strongest categories, while leather goods have gained market share despite overall market weakness [78][79] Question: Miu Miu's growth strategy - Miu Miu is underpenetrated in many markets, with plans for geographical expansion and product category growth, particularly in leather goods [110] Question: Impact of tourism on Prada brand - Q3 is expected to see continued cyclical demand pressure related to tourism, with a share of tourist spending roughly 30% globally [119][120] Question: Marketing costs and future expectations - Marketing costs were up 16% year-on-year, with significant phasing expected to normalize throughout the year [121][122]

Financial Data and Key Metrics Changes - The core rental business saw a decline of 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [7][8] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down 6% [8] - The Mainland China rental revenue decreased by 1% in renminbi terms, but due to RMB depreciation, it was down by 2% in Hong Kong dollars [9][10] - Hong Kong rental revenue decreased by 4%, with the core rental business representing 94% of total operations [10][11] - Net gearing stood at 33.5%, with a slight increase of 0.1% compared to December [35] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China improved from a decline of 4% in 2024 to a decline of 1% in 2025 [11] - Retail business remained flat compared to a decline of 3% in 2024, with seven out of ten projects showing positive growth [12] - The hotel business was reclassified under property, contributing to the overall revenue decline [10] - New letting increased by 36%, indicating strong demand despite market challenges [17] - The occupancy rate improved from 83% to 88% in certain properties, reflecting effective management strategies [19] Market Data and Key Metrics Changes - The retail landscape in Mainland China has evolved, with athleisure brands performing better than luxury brands [16] - The company is focusing on enhancing customer experience through events and tenant management to adapt to changing consumer behavior [16] - The luxury retail segment saw a decline of 12%, while other segments showed resilience [90] Company Strategy and Development Direction - The company aims to leverage its strengths and adapt to market changes, focusing on customer-centric strategies and enhancing tenant offerings [16][18] - Plans to launch a national program to improve operational efficiency and attract foot traffic in second-tier cities [16] - The company is exploring hybrid models for expansion, particularly in cities where it already has a presence [61] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability and potential uplift in the market, with expectations for mild growth in the second half of the year [6][62] - The sentiment in the property sector has stabilized, contributing to improved occupancy and traffic [66] - Management acknowledged the challenges posed by competition and the need for differentiation in the retail space [76] Other Important Information - The company is committed to sustainability, with 80% of projects in Mainland China powered by renewable energy [39] - The company is focusing on maintaining a strong balance sheet and managing finance costs effectively [36][38] Q&A Session Summary Question: Future expansion using high room property models - Management indicated that expansion will only occur when there is demand and synergy with existing projects [60] Question: Tenant sales trend in the next twelve months - Management anticipates a potential improvement from negative sales to mild growth in the second half of the year [62] Question: Reasons for improvement in the second quarter - Factors included improved occupancy, traffic, and external market conditions stabilizing [66] Question: Dividend guidance for the full year - Management intends to maintain a flat dividend, with discussions ongoing regarding future cash dividends [83][84] Question: Potential issuance of convertible bonds - Management is cautious about dilutive instruments and is monitoring the market but does not plan to issue convertible bonds at this time [72][73] Question: Transition progress in specific projects - Management reported improvements in occupancy and traffic, with a focus on enhancing the tenant mix and customer experience [74][75]

Financial Data and Key Metrics Changes - The core rental business revenue decreased by 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [8][10] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down by 6% [9][10] - The net gearing of Hang Lung Properties stood at 33.5%, reflecting a slight increase of 0.1% compared to December [35] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China decreased by 1% in the first half of 2025, an improvement from a 4% decline in 2024 [12][10] - Retail business remained flat compared to a 3% decline in 2024, with seven out of ten projects showing positive revenue growth [13][14] - The office segment continued to face challenges, with a decline of 4% in rental revenue [28][30] Market Data and Key Metrics Changes - Hong Kong's rental revenue saw a decline of 4%, but residential and service apartment rentals improved by 11% [32][30] - The overall sales in Hong Kong decreased by 2%, which is better than the market average decline of 4% [33][32] - The luxury retail segment reported a decline of 12%, while non-luxury sales increased by 8% [97] Company Strategy and Development Direction - The company is focusing on enhancing its retail offerings and tenant management to adapt to the evolving retail landscape [17][19] - A national program is being launched to improve operational efficiency and attract customers in second-tier cities [17] - The company is exploring hybrid models for expansion, particularly in cities where it already has a presence [65] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability and potential uplift in the market, particularly in the second half of the year [6][10] - The sentiment in the property sector has stabilized, which may lead to mild growth in tenant sales [66][71] - The company is committed to maintaining its dividend policy, with intentions to return to a cash dividend structure after the Westlake 66 Mall opens [88][89] Other Important Information - The company has increased its focus on renewable energy, with 80% of its projects in Mainland China now powered by renewable sources [41] - The company is actively working on several projects, including the Westlake 66 Mall, which is expected to enhance its market position [44][49] Q&A Session Summary Question: Future expansion using asset-light models - Management indicated that future expansions will depend on demand and synergy with existing projects, emphasizing a holistic approach [64][65] Question: Tenant sales trends in the next twelve months - Management anticipates a potential improvement in tenant sales, moving from a negative trend to mild growth in the second half of the year [66][71] Question: Reasons for improvement in the second quarter - The improvement was attributed to increased occupancy and traffic, along with external factors such as stock market stabilization [70][71] Question: Dividend policy for the full year - Management intends to maintain the current dividend structure, with a focus on not cutting dividends unless absolutely necessary [76][88] Question: Thoughts on issuing convertible bonds - The CFO expressed caution regarding dilutive instruments, noting that the company is not considering issuing convertible bonds at this time [78][79] Question: Progress on transitioning properties - Management reported improvements in occupancy rates and is focused on enhancing the tenant mix to attract customers [79][82]

Financial Data and Key Metrics Changes - The core rental business revenue decreased by 3%, which was anticipated at the beginning of the year [7][9] - Mainland China rental revenue in renminbi terms decreased by 1%, but due to renminbi depreciation, it fell by 2% in Hong Kong dollars [9][10] - Overall, the company declared the same dividend for both Hang Lung Properties and Hang Lung Group [9] Business Line Data and Key Metrics Changes - The hotel and sales business accounted for 33% of total revenue, down by 6% [9] - Retail business revenue remained flat compared to a 3% decline in 2024, with base rent increases offsetting sales rent drops [12][13] - New letting increased by 36%, with first-in-town brands up by 57% compared to 2024 [18][20] Market Data and Key Metrics Changes - Hong Kong rental revenue decreased by 4%, while residential and service apartment rentals improved by 11% [33] - The office segment saw a decline from -6% to -5%, with significant pressure in Shanghai due to high supply [29][30] - The overall sales in Hong Kong were down by only 2%, compared to the market's 4% decline [33] Company Strategy and Development Direction - The company is focusing on enhancing customer experience and differentiating its offerings in a changing retail landscape [17][20] - Plans to launch a national program to improve efficiency and attract foot traffic in second-tier cities [17] - The company aims to maintain a cautious but optimistic outlook for the second half of the year, hoping for stability and potential growth [6][62] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability of the market and potential for growth in the second half of the year [6][62] - The company noted that external factors, such as improved stock market sentiment, contributed to better performance in the second quarter [67] - Management acknowledged the challenges in the office segment but emphasized the retention of quality tenants [30][32] Other Important Information - The company is at the peak of its CapEx cycle, with expectations for a decline in capital expenditures moving forward [36] - The net gearing ratio stood at 33.5%, with a slight increase of 0.1% compared to December [36] - The company is committed to sustainability, with 80% of projects in Mainland China powered by renewable energy [40] Q&A Session Summary Question: Future hybrid property models for retail expansion - Management indicated that hybrid models would be considered only when there is demand and synergy with existing projects [60] Question: Tenant sales trends in the next twelve months - Management anticipates a potential improvement from negative sales to mild growth in the second half of the year [62] Question: Improvement in second quarter despite trade war concerns - Management attributed the improvement to occupancy and traffic increases, as well as external factors stabilizing the market [67] Question: Dividend policy and potential return to cash dividends - Management stated that a return to cash dividends is possible after the Westlake 66 Mall opens, but it will depend on board discussions [83] Question: Rationale behind declassifying luxury and non-luxury tenants - Management explained the decision to avoid binary classifications to better reflect customer behavior and contributions from various tenant categories [85][88] Question: Drivers for tenants willing to pay higher base rent - Management noted that positive reversion is seen in seven out of ten malls, with the potential for improved sales driving higher base rents [92]

Financial Data and Key Metrics Changes - The core rental business saw a decline of 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [7][9] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down 6% [9] - The net gearing of Hang Lung Properties stood at 33.5%, reflecting a slight increase of 0.1% compared to December [37] - The average borrowing cost decreased to 3.9%, a decline of around 40 basis points from the previous year [39] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China decreased by 1% in the first half, an improvement from a 4% decline in 2024 [12] - Retail business remained flat compared to a 3% decline in 2024, with base rent increases offsetting sales rent drops [13] - Office rental revenue continued to face challenges, with a decline of 4% [12] - New letting increased by 36%, indicating a strong demand for new tenants despite market challenges [19] Market Data and Key Metrics Changes - Hong Kong's rental revenue decreased by 4%, while residential and service apartment rentals improved by 11% [34] - The retail sector in Hong Kong saw a decline of 7%, but the overall sales were down by only 2% compared to the market's 4% decline [34] - The Mainland retail landscape is evolving, with some athleisure brands performing better than luxury brands [17] Company Strategy and Development Direction - The company is focusing on enhancing its retail offerings through events and tenant management to adapt to the changing retail landscape [18] - A national program is being launched to improve operational efficiency and attract foot traffic in second-tier cities [18] - The company is exploring hybrid property models to expand its retail business in cities where it already has a presence [64] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about stability and potential growth in the second half of the year, with expectations for mild growth in retail sales [6][66] - The company is committed to maintaining its dividend policy, aiming for stability rather than frequent resets [75] - Management acknowledged the challenges in the office rental market but emphasized the retention of quality tenants as a key strategy [30] Other Important Information - The company has increased its exposure to renminbi-denominated loans, which helps manage finance costs and provides a natural hedge [39] - The company is committed to sustainability, with 80% of projects in Mainland China powered by renewable energy [43] Q&A Session Summary Question: Future of hybrid property models for retail expansion - Management indicated that hybrid models will be considered when there is demand and synergy with existing projects [64][65] Question: Tenant sales trends for the next twelve months - Management anticipates a potential improvement from negative sales to mild growth in the second half of the year [66] Question: Improvement in the second quarter despite trade war concerns - Management attributed the improvement to increased occupancy and traffic, along with external factors like stock market stabilization [70][72] Question: Dividend policy for the full year - Management intends to maintain a flat dividend, with no plans for cuts unless circumstances change [75] Question: Potential issuance of convertible bonds - Management is cautious about dilutive instruments and currently does not consider issuing convertible bonds [76][77] Question: Progress on transitioning properties in Shenyang and Wuhan - Management reported improvements in occupancy and traffic, with a focus on enhancing the tenant mix to attract customers [78][79]

Financial Data and Key Metrics Changes - The company's total revenue for the first half of 2025 reached RMB 20.8 billion, with revenue from continuing operations growing 24.2% year over year to RMB 20.4 billion [7] - Adjusted non-IFRS net profit increased 44.4% year over year to RMB 6.31 billion, with a non-IFRS net profit margin of 30.4% [7][26] - The adjusted IFRS gross profit margin improved from 41.6% in 2024 to 44.5% in the first half of 2025 [26] Business Line Data and Key Metrics Changes - WuXi Chemistry's CRDMO revenue grew 33.5% year over year to RMB 16.3 billion, with an adjusted non-IFRS gross profit margin of 49% [12] - The small molecule DNM business revenue grew 17.5% year over year to RMB 8.68 billion [13] - WuXi Testing revenue slightly declined to RMB 2.69 billion in the first half, while lab testing revenue reached RMB 1.89 billion, almost flat year over year [19][20] - WuXi Biology revenue increased 7.1% year over year to RMB 1.25 billion, with a gross profit margin of 36.4% [23] Market Data and Key Metrics Changes - Revenue from US companies grew 38.4% year over year, while European companies grew 9.2% and Japan, Korea, and other regions grew 7.6% [9][10] - China experienced a decline in revenue, indicating a diversified revenue stream that supports financial stability [10] Company Strategy and Development Direction - The company focuses on enhancing core capabilities and expanding capacity to meet customer needs, with a record backlog for continuing operations growing 37.2% year over year [8][30] - The company is committed to sustainability, achieving a triple A rating from MSCI and validating emissions reduction targets [11] - The full-year guidance for continuing operations revenue has been raised to a growth rate of 13% to 17% for 2025, up from the previous 10% to 15% [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic global macro environment with uncertainties but remains confident in the demand for enabling services [30] - The company expects to further improve the adjusted non-IFRS net profit margin in 2025 and anticipates free cash flow to increase from RMB 5 billion to RMB 6 billion [32] - Management emphasizes the importance of retaining top talent and enhancing business resilience [34] Other Important Information - The company distributed a total of RMB 3.84 billion in cash dividends in 2025, including a special cash dividend [33] - The company completed share repurchases worth RMB 1.1 billion in the first half and plans additional repurchases [33][34] Q&A Session Summary Question: What are the key drivers for the second quarter revenue and earnings exceeding expectations? - Management attributes the strong performance to high execution efficiency rather than customer front-loading orders due to tariffs [39] Question: What considerations led to the raised full-year guidance? - The guidance was raised due to operational momentum and expectations of near double-digit growth in the second half despite external uncertainties [40] Question: How should new order growth be interpreted? - New orders signed in Q2 increased by approximately 12% year over year, indicating strong growth momentum [44] Question: What is the impact of tariffs on customer behavior? - There have not been significant changes in customer behavior due to tariffs, as the global pharmaceutical supply chain remains complex [57] Question: What is the outlook for early-stage project demand? - Early-stage lab services remain stable, with robust demand for new orders despite overall challenges in the biotech funding environment [54] Question: How does the company view the growth potential of its pipeline? - The company has several promising projects in its pipeline, including those in the GLP-1 category, which are expected to drive future growth [49][51]

Financial Data and Key Metrics Changes - The company's total revenue for H1 2025 reached RMB 20.8 billion, with revenue from continuing operations growing 24.2% year over year to RMB 20.4 billion [7] - Adjusted non-IFRS net profit increased 44.4% year over year to RMB 6.31 billion, with a net profit margin of 30.4% [7][25] - The adjusted IFRS gross profit margin improved from 41.6% in 2024 to 44.5% in H1 2025 [25] Business Line Data and Key Metrics Changes - WuXi Chemistry's revenue grew 33.5% year over year to RMB 16.3 billion, with an adjusted non-IFRS gross profit margin of 49% [11] - Revenue from the small molecule DNM business grew 17.5% year over year to RMB 8.68 billion [12] - WuXi Testing revenue slightly declined to RMB 2.69 billion in H1 2025, with lab testing services revenue reaching RMB 1.89 billion, almost flat year over year [18][19] - WuXi Biology revenue increased 7.1% year over year to RMB 1.25 billion, with a gross profit margin of 36.4% [22] Market Data and Key Metrics Changes - Revenue from US companies grew 38.4% year over year, while revenue from European companies grew 9.2% and revenue from Japan, Korea, and other regions grew 7.6% [8] - China experienced a decline in revenue, indicating a diversified revenue stream that supports financial stability [9] Company Strategy and Development Direction - The company focuses on enhancing core capabilities and expanding capacity to meet customer needs, with a record backlog for continuing operations growing 37.2% year over year [8][10] - The company aims to accelerate global expansion and capacity building while promoting lean management and operational efficiency [29] - Full year guidance for continuing operations revenue has been raised to a growth rate of 13% to 17% [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic and complex global macro environment but expresses confidence in the company's operational execution and customer demand [29] - The company anticipates continued growth in late-stage clinical and commercial projects, contributing to sustained business growth [29][31] Other Important Information - The company achieved a triple-A rating from MSCI for the first time, marking a significant milestone in sustainability efforts [10] - Cash dividends distributed in 2025 totaled RMB 3.84 billion, with share repurchases amounting to RMB 1.1 billion in the first half [32][33] Q&A Session Summary Question: What are the key drivers for the second quarter revenue and earnings exceeding expectations? - Management clarified that the outperformance was due to high operational efficiency and not customer front-loading orders due to tariffs [38] Question: What considerations led to the raised full year guidance? - The company noted that despite uncertainties, operational momentum and capacity validation were key factors in raising guidance [39] Question: How should new order growth be interpreted? - New orders signed in Q2 increased by approximately 12% year over year, indicating strong growth momentum [43] Question: What is the outlook for margin improvement in the second half? - Management expects margin improvement due to increased delivery of large late-stage and commercial orders, along with the divestiture of loss-making businesses [47] Question: How is the company addressing pricing impacts in the testing business? - The company maintains competitive pricing while emphasizing the need for high-quality services, despite price competition in the market [70] Question: What is the impact of tariffs on customer behavior? - Management has not observed significant changes in customer behavior due to tariffs, focusing instead on delivering high-quality services [57]

Financial Data and Key Metrics Changes - The group achieved revenue of approximately US$837.6 million for the first half of 2025, with a year-on-year growth of 31.7% and a half-on-half growth of 6.1% [17] - The group's gross margin was 40.3%, up 121 basis points half-on-half but down 65 basis points year-on-year [18] - Adjusted net profit reached HKD218.1 million, up 95.7% half-on-half, but down 12.2% year-on-year [19][20] - For Q2 2025, revenue totaled approximately US$436.1 million, an increase of 8.9% quarter-on-quarter and 1.8% year-on-year [22] Business Line Data and Key Metrics Changes - Advanced Packaging (AP) revenue contributed around 39% of the group's total revenue, approximately US$326 million, driven by strong demand for thermal compression bonding (TCB) tools [8][9] - Semiconductor Solutions segment revenue grew to US$257.6 million in Q2 2025, up 1% quarter-on-quarter and 20.9% year-on-year [25] - SMT Solutions segment delivered revenue of US$178.5 million in Q2 2025, a 22.6% increase quarter-on-quarter but a 17.2% decline year-on-year [28] Market Data and Key Metrics Changes - China accounted for 36.7% of group revenue, with strong growth driven by AI demand [31] - The automotive end market contributed 15% to group revenue, supported by electric vehicle demand in China [30] - The computer end market became the largest contributor to group revenue, accounting for 30%, driven by AI-related applications [21] Company Strategy and Development Direction - The company expects sustained growth in Advanced Packaging, particularly benefiting from AI tailwinds and technological leadership [32] - The group aims to solidify its TCB market leadership in both memory and logic applications, projecting a total addressable market of US$1 billion by 2027 [32] - The mainstream business will be supported by momentum in China and emerging demand for AI data centers, although automotive and industrial markets are expected to remain soft [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for AI-related applications, particularly in the semiconductor sector [5][6] - The company acknowledged uncertainties related to tariff policies but emphasized its global presence as a means to navigate potential impacts [33] - Management noted that the group has maintained a gross margin above 40% despite foreign exchange headwinds [7] Other Important Information - The group has maintained a diversified customer base, with the top five customers accounting for approximately 24.8% of total revenue in the first half of 2025 [31] - The company has an existing dividend policy of distributing about 50% of annual profits as dividends, with a recommended dividend of HKD0.26 per share for the first half of 2025 [20] Q&A Session Summary Question: Booking trend into the third quarter across different businesses - Management expects Q3 bookings to be slightly down quarter-on-quarter but up double digits year-on-year, with AI-related applications driving demand [38][40] Question: SMT bookings recovery in the second quarter - SMT bookings showed strong recovery due to bulk orders, but future orders may not be as material as those in Q2 [42] Question: Order opportunities for HBM in the next 12-18 months - Management is confident in continued order opportunities for HBM, particularly with the introduction of new AI chips [50][51] Question: Differentiation in hybrid bonding tools - The company believes its second-generation hybrid bonding tools will be competitive, addressing customer pain points effectively [103] Question: Sustainability of tax credits - Management indicated that the tax credits received in Q2 are a one-off and not expected to recur in the near term [82]

Financial Data and Key Metrics Changes - The group achieved revenue of approximately US$837.6 million for the first half of 2025, representing a year-on-year growth of 31.7% and a half-on-half growth of 6.1% [15] - The group's gross margin was 40.3%, up 121 basis points half-on-half but down 65 basis points year-on-year [16] - Adjusted net profit for the first half was HKD218.1 million, up 95.7% half-on-half but down 12.2% year-on-year [18] - For Q2 2025, revenue totaled approximately US$436.1 million, an increase of 8.9% quarter-on-quarter and 1.8% year-on-year [21] - The group's bookings reached US$912.8 million for the first half, showing a growth of 10.5% half-on-half and 12.4% year-on-year [15] Business Line Data and Key Metrics Changes - Advanced Packaging (AP) revenue contributed approximately 39% of the group's total revenue, amounting to around US$326 million, driven by strong demand for thermal compression bonding (TCB) tools [6][7] - The Semiconductor Solutions segment's revenue grew to US$257.6 million in Q2 2025, up 1% quarter-on-quarter and 20.9% year-on-year [24] - SMT Solutions segment revenue was US$178.5 million in Q2 2025, a 22.6% increase quarter-on-quarter but a decline of 17.2% year-on-year [27] Market Data and Key Metrics Changes - The computer end market became the largest contributor to group revenue, accounting for 30%, driven by AI-related applications [20] - The automotive end market contributed 15% to group revenue, supported by electric vehicle demand in China [20] - Revenue from China increased to 36.7% of group revenue, with strong growth driven by AI demand [31] Company Strategy and Development Direction - The company expects revenue for Q3 2025 to be between US$445 million and US$505 million, indicating confidence in sustained AP revenue and improvement in SMT revenue [32] - The group aims to solidify its TCB market leadership in both memory and logic applications, projecting a total addressable market of US$1 billion by 2027 [32] - The mainstream business will be supported by momentum in China and emerging demand for AI data centers, although automotive and industrial markets are expected to remain soft in the near term [33] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand driven by AI tailwinds across various markets, particularly in advanced packaging and mainstream businesses [4][5] - The company acknowledged uncertainties related to tariff policies but emphasized its global presence as a means to navigate potential impacts [33] - Management expressed confidence in maintaining gross margins above 40% despite foreign exchange headwinds [6] Other Important Information - The group maintained a diversified customer base, with the top five customers accounting for approximately 24.8% of total revenue in the first half of 2025 [31] - The company has an existing dividend policy of distributing about 50% of annual profits as dividends, recommending a dividend of HKD0.26 per share for the first half of 2025 [19] Q&A Session Summary Question: Booking trend into the third quarter across different businesses - Management expects Q3 bookings to be slightly down quarter-on-quarter but up double digits year-on-year, with strong momentum in AI-related bookings [38][40] Question: SMT bookings recovery in the second quarter - SMT bookings showed recovery due to bulk orders, but future orders may not be as material as those in Q2 [42] Question: Order opportunities within HBM and competition - Management is confident in their HBM market position and expects to continue winning orders due to their technological advantages [51][52] Question: Market share in hybrid bonding - The company is well-positioned in the hybrid bonding market with competitive features in their second-generation tools [103] Question: China revenue and localization trends - The company is seeing increased demand from the consumer market and electric vehicles in China, with a competitive pricing and margin profile [106]