Financial Data and Key Metrics Changes - The company reported a cash balance of $1.8 billion at the end of the quarter, following an interim dividend payment of approximately $82 million [16][63] - Cash operating costs were A$93 per ton, consistent with the previous year and within the guidance range of A$89–97 per ton [4][16] - The company is tracking to be in the upper half of the production guidance range of 35 to 39 million tons for the full year [4][63] Business Line Data and Key Metrics Changes - The company produced 15.8 million tonnes of ROM coal, translating to 12.3 million tonnes of salable coal, with an attributable share of 9.3 million tonnes [7][10] - Attributable sales volume increased by 31% compared to the June quarter, reaching 10.7 million tonnes [5][11] - The two Hunter Valley open cut mines performed well, with a 14% increase in attributable salable coal over the June quarter [9] Market Data and Key Metrics Changes - International coal prices remained under pressure, with average realized prices for thermal coal at A$130 per ton and metallurgical coal at A$195 per ton [15] - The average prices for the indices improved marginally, with the API 5 index averaging $69 per ton and the Global Coal Newcastle index averaging $109 per ton [14] - Total global seaborne trade is down 11% year-to-date, with Australian exports down 9% due to poor geological conditions [12][13] Company Strategy and Development Direction - The company aims to maximize operational performance and drive value generation for shareholders [3] - The focus remains on maintaining controllable cost discipline while navigating external cost pressures [4][16] - The company is evaluating opportunities for growth, particularly during cyclical downturns in the market [42][63] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging coal market conditions but expressed optimism about the company's strong operational performance and financial position [63] - The company is well-positioned for an upswing in coal prices due to its tier-one assets operating in the bottom quartile of the cost curve [63] - Management expects to deliver production in the upper half of the guidance range, which would be the best performance in many years [63] Other Important Information - The company has encountered external and temporary cost pressures through the Port of Newcastle, impacting second-half cash operating costs [4][16] - The company is focused on achieving sales volumes that were delayed in the previous quarter due to disruptions [11][28] Q&A Session Summary Question: How is the breakdown of cash costs looking right now, particularly transportation costs? - The CFO noted that cash operating costs remain consistent, with some savings from diesel, but transportation costs have seen temporary increases due to wet weather and port issues [20][22] Question: How much inventory remains unsold at the end of the September quarter? - The company is in a comfortable position regarding unsold inventory and is focused on achieving sales while monitoring vessel arrivals closely [28] Question: What is the outlook on Queensland royalties? - The CFO stated that there are no anticipated changes to Queensland royalties at this time [58] Question: Has there been any change in the view on per tonne production costs? - Management confirmed that while external pressures are affecting costs, they still expect to be around the midpoint of the guidance range for the full year [45] Question: What is the expected profit for the upcoming quarter? - The company does not provide profit forecasts but offers guidance on production, cost, and capital expenditure ranges [51]

Financial Data and Key Metrics Changes - The company is tracking to be in the upper half of the production guidance range of 35-39 million tons for the full year, potentially reaching the upper quartile [4] - Cash operating costs were AUD 93 per ton at the half-year, consistent with the guidance range of AUD 89–AUD 97 per ton [4][16] - The company ended the quarter with a cash balance of $1.8 billion after paying an interim dividend of approximately $82 million [16] Business Line Data and Key Metrics Changes - The company produced 15.8 million tons of ROM coal, translating to 12.3 million tons of salable coal, with an attributable share of 9.3 million tons, all in line with forecasts [7][9] - Attributable sales volume was 10.7 million tons, which was 31% higher than the June quarter, recovering from previous delays [11] Market Data and Key Metrics Changes - International coal prices remained under pressure, with average realized prices for thermal coal at AUD 130 per ton and metallurgical coal at AUD 195 per ton [15] - The average prices for the indices improved marginally, with the API 5 index averaging $69 per ton and the Global Coal Newcastle index averaging $109 per ton [14] Company Strategy and Development Direction - The company aims to maximize operational performance and drive value generation for shareholders, focusing on maintaining controllable cost discipline [3][4] - The company is exploring opportunities for growth, particularly during cyclical downturns, while maintaining a strong financial position [42] Management Comments on Operating Environment and Future Outlook - Management acknowledged external and temporary cost pressures affecting cash operating costs but remains optimistic about maintaining costs within the guidance range [4][16] - The company is positioned well for an upswing in coal prices, with a strong operational performance and disciplined cost control [62] Other Important Information - The company has achieved a downward trend in total recordable injury frequency rate, which was 5.71% at the end of September, below the industry average [6] - The company is maintaining a strong financial position with no interest-bearing debt and good access to debt markets [62] Q&A Session Summary Question: Breakdown of cash costs and transportation costs - The CFO indicated that cash operating costs remain consistent, with some savings from diesel, but transportation costs are impacted by wet weather and port usage [20][22] Question: Inventory levels and sales recovery - The company reported that sales volumes were recovered in Q3 due to previous delays, and they are in a comfortable position regarding unsold inventory [28] Question: Capital expenditure for the third quarter - The CFO confirmed that capital expenditure is consistent with guidance and is primarily driven by fleet upgrades and heavy equipment [33] Question: Changes in production cost expectations - Management noted that while they previously hoped to move below the midpoint of the cost guidance, they now expect to remain around the midpoint due to external pressures [44] Question: Outlook on Queensland royalties - The CFO stated that there are no anticipated changes to Queensland royalties at this time [57] Question: Potential mergers and acquisitions - Management reiterated that they do not comment on specific scenarios but are exploring opportunities in the context of the current market conditions [55][56]

Financial Data and Key Metrics Changes - The company reported a cash balance of $1.8 billion at the end of the quarter, following an interim dividend payment of approximately $82 million, with no interest-bearing debt remaining [15][36] - Cash operating costs were A$93 per ton, consistent with the previous year, and the company aims to maintain costs around the midpoint of the A$89–97 per ton guidance range for the full year [4][15][40] Business Line Data and Key Metrics Changes - The company produced 15.8 million tonnes of ROM coal, translating to 12.3 million tonnes of salable coal, with an attributable share of 9.3 million tonnes, all in line with forecasts [6][9] - Attributable sales volume increased by 31% compared to the June quarter, reaching 10.7 million tonnes, recovering from previous delays due to disruptions at the Port of Newcastle [5][11] Market Data and Key Metrics Changes - International coal prices remained under pressure, with average realized prices for thermal coal at A$130 per ton and metallurgical coal at A$195 per ton, resulting in an overall average realized sales price of A$140 per ton, slightly down from A$142 per ton in the prior quarter [14][46] - The API 5 index averaged $69 per ton, and the Global Coal Newcastle index averaged $109 per ton during the quarter, with some improvement noted in the indices [13][14] Company Strategy and Development Direction - The company is focused on maximizing operational performance and driving value generation for shareholders, with expectations to deliver production in the upper half of the guidance range for the year [3][55] - The management emphasized maintaining cost discipline and operational efficiency as a competitive advantage, particularly in a challenging market environment [55] Management Comments on Operating Environment and Future Outlook - The management acknowledged external and temporary cost pressures affecting the sector, particularly through the Port of Newcastle, but remains optimistic about returning to normal operating conditions [4][40] - There is cautious optimism regarding the coal market, with indications that prices may have reached cyclical lows, and the company is well-positioned for potential upswing in coal prices [55] Other Important Information - The company has a strong financial position with $1.8 billion in cash and good access to debt markets, allowing for the evaluation of growth opportunities [55] - The company is actively assessing potential mergers and acquisitions, particularly during the cyclical downturn, while maintaining a disciplined approach to capital allocation [36][38] Q&A Session Summary Question: How is the breakdown of cash costs looking, particularly transportation costs? - The CFO indicated that cash operating costs remain consistent, with some savings from diesel, but transportation costs have seen temporary increases due to wet weather and port issues [18][20] Question: What is the current inventory situation and sales outlook? - The company reported a comfortable sales position, having recovered delayed sales volumes from Q2, and is maintaining a focus on logistics to ensure timely deliveries [24][25] Question: What is the outlook for capital expenditure? - The company confirmed that capital expenditure is on track within the guidance range of A$750 to A$900 million, primarily driven by fleet upgrades and heavy equipment investments [28][51] Question: What is the expected profit for the upcoming quarter? - The company does not provide profit forecasts but maintains guidance on production, cost, and capital expenditure ranges [43] Question: Any updates on Queensland royalties? - The company does not anticipate changes to Queensland royalties at this time [50]

Financial Data and Key Metrics Changes - The company reported a cash balance of AUD 1,800,000,000 at the end of the quarter, following the payment of an interim dividend of approximately AUD 82,000,000, and remains free of interest-bearing debts [20][21][75] - Cash operating costs were AUD 93 per tonne at the half-year mark, which is in the middle of the guidance range of AUD 89 to AUD 97 per tonne [5][20] - The company is tracking to be in the upper half of its production guidance range of 35,000,000 to 39,000,000 tonnes for the full year [4][75] Business Line Data and Key Metrics Changes - The company produced 15,800,000 tonnes of ROM coal, translating to 12,300,000 tonnes of saleable coal, with an attributable share of 9,300,000 tonnes, all in line with forecasts [7][8][12] - Saleable coal production increased by 14% compared to the previous quarter, despite wet weather disruptions [11][12] - Attributable sales volume was 10,700,000 tonnes, which is 1% higher than the previous quarter [14] Market Data and Key Metrics Changes - International coal prices remained under pressure, with average realized prices for thermal coal at AUD 130 per tonne and metallurgical coal at AUD 195 per tonne [18] - The average overall realized sales price was AUD 140 per tonne, slightly down from AUD 142 per tonne in the prior quarter [18] - Total global seaborne trade is down 11% year-to-date, with Australian exports down 9% due to poor geological conditions [16] Company Strategy and Development Direction - The company aims to maximize operational performance and drive value generation for shareholders, focusing on maintaining controllable cost discipline [4][75] - The management is optimistic about the potential for recovery in coal prices, emphasizing the company's strong financial position and ability to explore opportunities during cyclical downturns [49][75] - The company is committed to maintaining a strong operational performance and cost control, which is seen as a competitive advantage [74][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external and temporary cost pressures affecting cash operating costs but expects to deliver unit costs around the midpoint of the guidance range for the full year [5][20] - There is cautious optimism regarding the coal market, with indications that prices may have reached cyclical lows [18][75] - The company is closely monitoring the impact of weather conditions and logistics on sales and production [14][41] Other Important Information - The company has a strong balance sheet and good access to debt markets, allowing for the evaluation of potential growth opportunities [75] - The management highlighted the importance of maintaining a low-risk sales position and the ability to take advantage of spot opportunities in the market [32] Q&A Session Summary Question: How is the breakdown of cash costs looking, particularly transportation costs? - The CFO noted that transportation costs are largely fixed and will be supported by increased production, but temporary increased costs from the Port of Newcastle are expected due to weather disruptions [23][26][27] Question: What is the current inventory situation and outlook for sales recovery? - The Executive General Manager of Marketing and Logistics stated that the company is in a comfortable low-risk scenario regarding sales and is focused on recovering delayed sales volumes from the previous quarter [32] Question: What is the capital expenditure incurred in the third quarter? - The CFO confirmed that capital expenditure is consistent with guidance and is primarily driven by fleet upgrades and heavy equipment investments [36][37] Question: Is there any change in the view on per tonne production costs? - Management acknowledged that while there were hopes to move below the midpoint of the cost guidance, current expectations are to remain around the midpoint due to external pressures [51][52] Question: What is the outlook on Queensland royalties? - Management indicated that there are no anticipated changes to Queensland royalties at this time [68] Question: What is the expected profit for the upcoming quarter? - The company does not provide profit forecasts but offers guidance on production, cost, and capital expenditure ranges [58] Question: What are the implications of potential mergers and acquisitions? - Management reiterated that they do not comment on specific scenarios but emphasized the company's strong financial position to explore opportunities [66][67]

Financial Data and Key Metrics Changes - In Q3 2025, the average market spot rates for Handysize and Supramax vessels were approximately $11,600 and $14,300 net per day, reflecting a decrease of 1% and an increase of 4% respectively compared to the same period in 2024 [5] - The average TCE earnings for Handysize and Supramax vessels were $11,680 and $13,410, representing a year-on-year decrease of 15% for Handysize and an increase of 10% for Supramax [8] - The company has utilized approximately $26 million of its announced $40 million share buyback program, completing about 65% of the targeted buyback [20] Business Line Data and Key Metrics Changes - The core business generated average TCE earnings of $11,680 for Handysize and $13,410 for Supramax in Q3 2025, with performance against market indices showing a $90 per day outperformance for Handysize but a $100 per day underperformance for Supramax [8][9] - Operating activities generated a daily average margin of $750 over 6,830 operating days in Q3 [10] Market Data and Key Metrics Changes - Global mined bulk loadings rose 4% year-on-year, driven by bauxite, fertilizers, and mined ores, while grain loadings decreased by 9% [5][6] - Coal earnings reduced by 6% year-on-year due to weaker demand from major markets, with China’s coal imports falling by 15% [7] - The combined global fleet of Handysize and Supramax vessels is estimated to grow by 4.3% in 2025, with newbuilding deliveries accounting for 4.4% of this growth [13] Company Strategy and Development Direction - The company aims to strategically renew and grow its fleet, maintaining fixed price purchase options on 13 long-term chartered vessels and planning to take delivery of newbuildings in 2026 [15] - The focus remains on expanding growth optionality while managing fleet renewal in a disciplined manner [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dry bulk market, anticipating steady minor bulk demand growth and potential supply disruptions that could support tighter freight market conditions [21] - The company is prepared for ongoing macroeconomic and industry uncertainties, leveraging its financial strength and agile business model to navigate challenges [21] Other Important Information - The company has taken proactive steps to comply with new port tariffs, including transferring vessels to Singapore ownership to mitigate potential impacts [16][18] - The company does not believe it is subject to special tariffs under U.S. and Chinese regulations, as it maintains a diverse shareholder base [17][18] Q&A Session Summary Question: Can you elaborate on congestion and disruptions related to port tariffs? - Management noted that while there are concerns about congestion, the market has improved since summer, and strategic leadership has shifted to Singapore to align with regulatory definitions [28][29] Question: What is the expectation from the ongoing IMO meeting regarding supply dynamics? - Management expressed hope for regulations on decarbonization, which could positively impact the business and support new building initiatives [33] Question: How is the company managing disruptions from new port fees? - Management acknowledged that disruptions create inefficiencies, which could positively impact the market in the short term, while emphasizing the need for clarity on regulations [39][84] Question: What is the outlook for the spot market and outperformance in Q4? - Management indicated a positive outlook for the market, driven by demand growth and seasonal factors, while acknowledging the typical lag in performance during rising markets [56][58] Question: What are the CapEx plans and new building market expectations? - Management outlined a cautious approach to CapEx, focusing on share buybacks and monitoring the secondhand market, while noting that newbuilding orders remain low due to market uncertainties [72][76]

Financial Data and Key Metrics Changes - The company reported a parcel volume of 468 million pieces in Q3 2025, representing a 31.8% increase year-on-year and a total year-on-year increase of 25.6% for the first nine months [2][3] - The gross market in Southeast Asia and China saw significant growth, with South Asia experiencing a year-on-year increase of 78.7% for the first nine months, totaling 586 million pieces [2][3] - In China, the parcel volume reached 5.85 billion pieces in Q3, marking a year-on-year increase of 47% [3][4] Business Line Data and Key Metrics Changes - The e-commerce platform customers have increased their investments, driving rapid growth in business volume through promotional activities [3] - Non-platform shipments are also growing, contributing to order volume, although they account for less than 10% of total shipments [3] - The company achieved a year-on-year increase of 67% in new markets, with 270 billion pieces of parcels processed [4] Market Data and Key Metrics Changes - The South Asian market has shown strong growth, with a 63% increase in parcel volume [2] - Brazil has seen strong growth due to new customer entries, while Mexico faces challenges due to increased tariffs [4][10] - The overall industrial growth in China has slowed down, with a 12% decrease noted in August and September [11] Company Strategy and Development Direction - The company aims to maintain a growth guidance of 40% in new markets, with Brazil performing particularly well [10] - The strategy includes focusing on high-quality customers and optimizing operational efficiency in emerging markets [25][44] - The company is positioning itself to take advantage of the consolidation in the express delivery market as competitors withdraw [3][19] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining growth momentum in South Asia, expecting Q4 growth to exceed initial guidance [7][8] - The company is cautious about profitability in the second half of the year due to industry price increases and cost pressures [11][42] - The management views the China market as a training ground for operational efficiency and talent recruitment, aiming for sustainable growth [25][44] Other Important Information - The company does not disclose quarterly financial figures, maintaining guidance provided in August [5] - The logistics index has improved, enhancing the brand image among high-quality customers [4] Q&A Session Summary Question: Growth trend in South Asia and profitability expectations - Management expects growth in South Asia to continue exceeding guidance, with a competitive market dynamic making precise predictions challenging [7][8] Question: Impact of price increases in China - Price increases have led to a slowdown in parcel volume growth, particularly affecting low-margin customers, while high-end customers remain less sensitive to price changes [34][42] Question: Future potential in South Asia and emerging markets - Management is confident in maintaining growth momentum in South Asia, with ongoing investments in operational capabilities [36][38] Question: Strategy adjustments in China - The company plans to focus on high-quality customers and improve profitability, viewing the current market as a learning opportunity [25][44]

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]