Financial Data and Key Metrics Changes - The company reported a 4% growth in total revenue, exceeding USD 2.2 billion, with EBITDA improving by 3% to USD 818 million and AFF growing to USD 328 million [3][20][28] - The interim dividend declared was HKD 33.8 per share [3] - The gross debt decreased to USD 5.57 billion, improving the gross debt to EBITDA ratio to 3.11x [30] Business Line Data and Key Metrics Changes - The enterprise segment saw an 11% year-on-year revenue growth, driven by a 14% increase in cloud projects and a 6% growth in high bandwidth fiber lines [10][21] - Mobile services revenue grew by 5%, with a net addition of 45,000 customers and an ARPU increase to USD 193 [7][23] - Fixed broadband subscriber base grew by over 140%, contributing to a 3% increase in fiber users [9][21] Market Data and Key Metrics Changes - China revenue grew by 13%, supported by demand for SD WAN services and data center uptake [12] - Roaming revenue increased by 7%, reaching 104% of pre-pandemic levels, with active roaming penetration rising to 59% [7][23] - The number of 5G subscribers reached nearly 1.9 million, representing a 21% year-on-year increase [8][24] Company Strategy and Development Direction - The company is focusing on AI technology to enhance customer offerings and improve operational efficiency, achieving a 7% cost savings across the overall cost base [4][18] - Investments in digital infrastructure, including a 100 terabit core backbone network, are aimed at supporting high bandwidth requirements for AI and cloud computing [5][10] - The company is expanding its digital ecosystem through loyalty platforms and telemedicine services, targeting customer acquisition and retention [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about enterprise growth, targeting 10% to 12% for the full year, supported by a healthy project pipeline and economic recovery in Hong Kong [35][36] - The company anticipates continued growth in roaming revenue due to increased travel activities and mega events [37][38] - Management highlighted the positive impact of lower interest costs and a strengthened balance sheet on future growth prospects [18][34] Other Important Information - The company received an MSCI AA ESG rating for the fifth consecutive year, reflecting its commitment to sustainability and community engagement [17] - The company is actively managing its working capital, expecting improvements in the second half of the year [41] Q&A Session Summary Question: What is the guidance for interest costs in the second half? - Management expects full-year interest savings to be at least 25% to 30% [34] Question: Will enterprise growth of 11% be maintained for the full year 2025? - Management is optimistic, targeting 10% to 12% growth for the full year [35][36] Question: Do you expect strong roaming revenue growth to be maintained for the remainder of 2025? - Management is positive about maintaining growth in roaming revenue due to increased travel and events [37][38] Question: Is it possible to capitalize on low interest rates through refinancing into more floating debt? - Management indicated a willingness to leverage low rates while maintaining a prudent balance [39][40] Question: What is the outlook for working capital in the second half? - Management expects better working capital management in the second half [41] Question: Is there guidance for full-year growth in AFF? - Management is optimistic that growth will be better than 3% [42]

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]