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

Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties and lower finance costs, partially offset by impairment provisions of four development properties [3][4] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion, with underlying earnings per share up 0.5% to HKD 7.54 and reported earnings per share up 1.2% to HKD 6.65 [4][5] - The group's net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% in December [5][6] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [4] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio and a 3.2% decrease from the Mainland portfolio [4][14] - The hotel business recorded an operating profit of HKD 615 million, down from HKD 650 million in FY 2024 [5][26] Market Data and Key Metrics Changes - The group's total land bank in Hong Kong was about 57.4 million square feet, including 37.7 million square feet of completed properties and 19.7 million square feet under development [9] - Contracted sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [21] Company Strategy and Development Direction - The company aims to maintain a stable base of recurring income while leveraging its quality brand and products to drive sales [7][31] - Future projects include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, with a focus on high asset turnover in property development [32][42] - The company plans to adopt a proactive leasing approach and strengthen relationships with tenants to enhance competitive edge [31][43] Management Comments on Operating Environment and Future Outlook - The management noted that the global environment remains volatile, but monetary easing and a growing tourism industry in Hong Kong are expected to drive moderate economic growth [30] - The residential market in Hong Kong is showing signs of stabilization, with expectations of improved buyer confidence and transaction volumes [30][38] - The company remains confident in the long-term prospects of both the Mainland and Hong Kong markets, supported by proactive fiscal and monetary measures [46][47] Other Important Information - The group achieved a significant reduction in net finance costs by 24% year-on-year, driven by lower debt and borrowing costs [6] - The company has been recognized for its commitment to ESG, with an upgraded ESG rating to AA [27] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the residential market is nearing a bottom, with low interest rates and rising rents encouraging renters to become buyers [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at RMB 30 billion, with several projects planned for launch [55] Question: Expectations for government policy support measures - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [58] Question: Land banking appetite and preferences - The company is focused on acquiring residential land in prime locations while also considering commercial investments [59] Question: Prioritization between new investment, debt repayment, and shareholder returns - The company will focus on paying down debt while looking for the right opportunities for investment [64] Question: Dividend policy and share buyback considerations - The company maintains a policy of paying 50% of underlying profit as dividends and does not currently plan for share buybacks [65] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [66] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy [81]

Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties, alongside lower finance costs, partially offset by impairment provisions of HKD 4 billion on development properties [2] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion [2] - Underlying earnings per share rose by 0.5% to HKD 7.54, while reported earnings per share increased by 1.2% to HKD 6.65 [3] - The net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% [4][5] - Interest coverage improved to around six times compared to 4.6 times a year ago, with net finance costs dropping by 24% year-on-year [5] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [3] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio [3] - The hotel business recorded an operating profit of HKD 615 million, unchanged from FY 2024 [4] - The Group's total operating profit for FY 2025 was slightly down to about HKD 32.2 billion [4] Market Data and Key Metrics Changes - The Group's total land bank in Hong Kong was about 57.4 million square feet, with 37.7 million square feet completed and 19.7 million square feet under development [7] - Recognized property sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [9] - Contracted sales not yet recognized amounted to HKD 35.6 billion, with around HKD 30.1 billion expected to be recognized in FY 2026 [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [20] Company Strategy and Development Direction - The Group aims to maintain a stable base of recurring income and leverage its quality brand and products to drive sales [6] - The strategy includes a proactive leasing approach to strengthen competitive edge and cultivate long-term relationships with tenants [30] - New projects in Hong Kong include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, while in Shanghai, three ITC projects are under development [31][44] Management's Comments on Operating Environment and Future Outlook - The global economic environment is expected to remain volatile, but monetary easing and lower interest rates may favor economic growth [29] - In Hong Kong, the residential market shows signs of stabilization, with rising home rents and improved buyer confidence anticipated [29] - The Mainland economy is expected to maintain steady growth supported by proactive fiscal and monetary measures [29] - The Group remains confident in the long-term prospects of both the Mainland and Hong Kong markets [44] Other Important Information - The Group's ESG initiatives have been recognized, with an upgrade to AA in the MSGI ESG rating [27] - The Group has introduced innovative retail formats and family-friendly facilities in its malls to enhance shopper experience [15][16] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the market is nearing a bottom due to low interest rates and rising rents, which may lead renters to become buyers [50] - Upcoming launches may see more aggressive pricing, especially for projects like Koolen and Sky [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at HKD 30 billion, influenced by potential uncertainties in project approvals [54] Question: Expectations for government policy support - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [56] Question: Land banking appetite and focus - The Group is interested in acquiring residential land, particularly in prime locations, while also considering commercial investments [57] Question: Prioritization between new investments, debt repayment, and shareholder returns - The focus is currently on paying down debt and improving liquidity, with land acquisition prioritized when opportunities arise [62] Question: Dividend policy and share buyback considerations - The Group maintains a policy of paying 50% of underlying profit as dividends and does not plan to initiate share buybacks at this time [63] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [63] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy, and management is in talks with potential new tenants for vacant spaces [80][81]

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

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

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

Financial Data and Key Metrics Changes - Revenue for the first half reached approximately RMB 2.63 billion, representing a 20.9% increase compared to the same period last year [1] - Profit attributable to equity holders reached approximately RMB 117 million, a significant increase of 55.9% year on year [1][3] - Free cash flow was approximately RMB 117 million, down 12.3% year on year, but maintaining a healthy level [2] Business Line Data and Key Metrics Changes - Revenue in the mature business segment, oilfield technical services, showed strong growth, contributing to the overall revenue increase [3] - New business ventures expanded into oil and gas development, natural gas utilization, and AI-enabled operations, stabilizing the integrated service model [4] Market Data and Key Metrics Changes - In Iraq, the company achieved comprehensive coverage, establishing a business ecosystem that enhances market influence [5] - The company successfully entered the Southeast Asian market with a customized natural gas commercialization project in Malaysia [5] Company Strategy and Development Direction - The company aims to build a leading global green energy technology services company, focusing on sustainable growth and operational efficiency [9][10] - A dual strategy of dividend distribution and share buybacks has been adopted to enhance shareholder value [7] - The company plans to establish Dubai as its global headquarters and operational hub, with various centers in Egypt, India, Mainland China, and Hong Kong to support global deployment [6] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of early indicator management to drive sustainable corporate growth and enhance predictability in revenue realization [12] - The company remains committed to improving operational efficiency and generating healthy cash flow while focusing on emerging markets for long-term growth [9][24] Other Important Information - The company was honored as a China excellence management company and selected for the S&P sustainable yearbook China edition 2025, recognizing its management capabilities and sustainability efforts [8] - The company has reduced its total US dollar debt to zero, optimizing its financial structure [2] Q&A Session Summary Question: Can management provide a detailed introduction about the company's ten-year growth strategy? - Management clarified that the strategy is a five-year plan aiming for tenfold growth, focusing on improving development and utilization efficiency for customers [17][19] Question: What is the input and timeline for the return of new businesses? - Management stated that the natural gas utilization will follow a life asset development strategy, focusing on technology input rather than capital [29] Question: What is the outlook for orders in the second half of the year? - Management indicated that orders are larger and longer-term compared to the previous year, which will enhance profit predictability [33] Question: What is the reason for the decrease in gross margin? - Management noted that the decrease in gross margin is temporary, attributed to expansion into new markets and lower-margin services, but expects stabilization in the future [36]

Financial Data and Key Metrics Changes - The company's total revenue increased by 13.1% year on year, from $4.9 billion in 2024 to $5.5 billion in 2025 [21] - Adjusted net profit reached $156 million in 2025, representing a 147% increase from $63 million in the first half of last year [30] - Gross profit margin declined from 11% to 9.8% due to competitive pressures in the China market [21] Business Line Data and Key Metrics Changes - In Southeast Asia, revenue increased by 29.6% year on year, from $1.5 billion in 2024 to $2 billion in 2025 [22] - In China, revenue grew by 4.6% year on year to $3.1 billion, with revenue per parcel decreasing from $0.34 to $0.30 [25] - New markets achieved a revenue increase of 24.3% year on year, from $292 million in 2024 to $362 million in 2025 [28] Market Data and Key Metrics Changes - The parcel volume in Southeast Asia reached 3.23 billion parcels, a year on year increase of 58% [10] - In China, parcel volume reached 10.6 billion parcels, representing a year on year increase of 20% [13] - New markets saw parcel volume reach 170 million parcels, a year on year increase of 22% [15] Company Strategy and Development Direction - The company aims to focus on continuous cost reduction and developing non-ecommerce platform customers to enhance profitability [12] - The strategy includes leveraging automation and digitalization to improve operational efficiency and customer experience [17] - The company plans to maintain its strategic position as a third-party logistics provider in Latin America, capitalizing on the growth of e-commerce platforms [40] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenges posed by geopolitical conflicts and uncertainties in international trade policies [7] - There is optimism regarding the growth potential in Southeast Asia and new markets, with expectations for continued parcel volume growth [17] - The management noted that the anti-involution policy in China may lead to price recovery and improved earnings in the future [37] Other Important Information - The company achieved adjusted EBITDA breakeven in new markets for the first time, indicating improved operational efficiency [28] - The company has deployed over 900 autonomous delivery vehicles to enhance last-mile delivery efficiency [95] - The total cash balance as of June 30, 2025, was $1.7 billion, indicating strong cash generation capabilities [32] Q&A Session Summary Question: Thoughts on domestic policy and its impact on earnings - Management noted that price recovery has been observed in certain provinces due to anti-involution policies, which may lead to improved earnings [37] Question: Outlook for Latin American market performance - Management expressed optimism about the growth potential in Latin America, citing successful partnerships and a significant increase in parcel volume [40] Question: Update on non-ecommerce platform businesses in Southeast Asia - Management confirmed ongoing development of non-ecommerce customers, which, while growing slower than e-commerce parcels, contribute higher margins [45] Question: Capacity to handle strong volume growth in Southeast Asia - Management stated that current capacity can handle over 30 million parcels daily, with plans for continued upgrades to meet future demand [49] Question: Cost reduction and efficiency improvements - Management highlighted ongoing efforts to reduce costs through fleet expansion, automation, and network optimization [55] Question: Growth expectations and market expansion plans - Management indicated that the e-commerce market in Southeast Asia is expected to grow rapidly, and they are evaluating potential new markets for expansion [63] Question: Cooperation with MercadoLibre - Management shared that collaboration with MercadoLibre is progressing well, with significant potential for future growth [92] Question: Initiatives for embracing AI technologies - Management mentioned ongoing deployment of autonomous delivery vehicles and plans to localize automated sorting equipment in new markets [96]

Financial Data and Key Indicators Changes - The operating income for the first half of 2025 was CNY 1,000 billion, an increase of 2.95% compared to the previous year [4] - Net fee and commission income reached CNY 65.2 billion, up by 4% [82] - Net profit provisions increased to CNY 239.4 billion, reflecting a growth of 3.37% [5] - The gross loans to customers amounted to CNY 40 trillion, a rise of 6.2% [6] - The net interest margin (NIM) stood at 1.4%, with a return on assets (ROA) of 0.77% and return on equity (ROE) of 10.08% [6] - The capital adequacy ratio (CAR) was reported at 19.51% [6] Business Line Data and Key Indicators Changes - Loans to technology-related industries reached CNY 5 trillion, increasing by 16% [11] - The balance of inclusive loans to SMEs was CNY 3.74 trillion, up by 9.8% [14] - Personal consumption loans rose to CNY 614.2 billion, marking an increase of CNY 86 billion from the end of the previous year [17] - The balance of green finance reached CNY 5.72 trillion, an increase of 14.88% [12] Market Data and Key Indicators Changes - The loans to private enterprises totaled CNY 6.59 trillion, up by 9.92% [16] - The cross-border RMB settlement reached CNY 3 trillion, reflecting a growth of 23% [18] - The total asset of institutions in the RCEP region exceeded CNY 200 billion [19] Company Strategy and Development Direction - The company aims to focus on five priorities, including enhancing comprehensive financial services and supporting key infrastructure projects [24] - There is a commitment to high-quality development and optimizing operational strategies, particularly in asset and liability management [25] - The company plans to strengthen customer engagement and product portfolio to enhance market competitiveness [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the stable economic progress and sound macroeconomic measures in the first half of 2025 [70] - The company will continue to monitor credit policies and enhance risk control capabilities to maintain stable asset quality [71] - The outlook for the second half of 2025 includes a focus on supporting the real economy and optimizing credit policies [71] Other Important Information - The company has maintained a leading position in the industry with a cost-to-income ratio of 23.72%, outperforming peers [9] - The non-performing loan (NPL) ratio was reported at 1.33%, down by one basis point from the previous year [21] - The provision coverage ratio increased by 5.8% to 239.4% [22] Q&A Session Summary Question: What are the drivers behind the improvement in revenue and the outlook for profits this year? - Management noted marginal improvements in all business and profit indicators, with operational income and profit before provision showing positive growth [28] - Measures taken include improved capability to balance volume and price, fostering new drivers for noninterest income, and enhancing cost management [29][32] Question: Can you discuss the NIM outlook given recent rate cuts? - The NIM was reported at 1.4%, with a narrowing decline compared to previous quarters, but still leading in the industry [35] - Management indicated that while there may be further pressure on NIM due to rate cuts, proactive management will help maintain industry-leading levels [40] Question: What are the key areas for loan issuance and infrastructure loans? - The company executed guidelines to support the real economy, with corporate loans increasing significantly [42] - Infrastructure loans remain a pillar for the company, with expectations for better results in the second half due to national projects [46] Question: How does the company plan to manage bond investments amid market fluctuations? - The company has increased its bond investment to CNY 11 trillion, focusing on national, local, and corporate bonds [52] - A proactive strategy is in place to optimize bond investment structure and maintain a leading position in the market [56] Question: What measures are being taken to increase deposits in a low-interest environment? - The company reported a deposit increase of CNY 760 billion, with a focus on expanding the customer base and innovative products [60] - Strategies include leveraging technology for customer engagement and adapting to market dynamics [64] Question: What is the outlook for asset quality in the second half? - The NPL ratio was stable at 1.33%, with management committed to enhancing risk control capabilities [68] - The company plans to implement measures to mitigate risks and maintain stable asset quality indicators [71] Question: What progress has been made in fintech and digital economy initiatives? - The company has strengthened its digital ecosystem and improved customer experience through enhanced mobile services [76] - Significant progress has been made in AI technology, improving operational efficiency and customer service capabilities [74]

Financial Data and Key Metrics Changes - The company's parcel volume reached 13.99 billion parcels, a year-on-year increase of 27% [8] - Revenue increased to $5.5 billion, representing a year-on-year growth of 13% [8] - Adjusted net profit rose to $160 million, a significant year-on-year increase of 147% [8][30] - Gross profit margin declined from 11% to 9.8% due to competitive pressures in the China market [21] Business Line Data and Key Metrics Changes - In Southeast Asia, parcel volume reached 3.23 billion parcels, a year-on-year increase of 58%, with market share rising to 32.8% [9] - Revenue in Southeast Asia increased by 29.6% year-on-year to $2 billion, with adjusted EBIT growing by 74% [22] - In China, parcel volume reached 10.6 billion parcels, a year-on-year increase of 20%, but revenue per parcel decreased to $0.30 [13][25] - New markets saw parcel volume increase to 170 million parcels, a year-on-year growth of 22%, achieving positive EBITDA for the first time [15][27] Market Data and Key Metrics Changes - Southeast Asia's market share increased by 5.4 percentage points year-on-year, solidifying the company's leadership position [9] - The new markets segment achieved a significant turnaround, with a market share increase of 6.2% [15] Company Strategy and Development Direction - The company focuses on continuous cost reduction and developing non-ecommerce platform customers to enhance profitability [11] - Plans to replicate China's cost reduction experience in Southeast Asia and new markets [16] - Emphasis on investing in network capacity and automation to improve operational efficiency [16][28] Management's Comments on Operating Environment and Future Outlook - The global economic environment remains volatile, with geopolitical conflicts and trade uncertainties posing challenges [7] - Management expressed confidence in future growth, particularly in Southeast Asia and Latin America, driven by strong local partnerships [16][39] - The company aims to maintain a long-term focus on value creation amidst competitive pressures [17] Other Important Information - The company achieved a strong cash flow, with net cash flow from operating activities amounting to $421 million, an increase of 21.8% [30][32] - Total cash and cash equivalents reached $1.7 billion as of June 30, 2025 [32] Q&A Session Summary Question: Impact of domestic policy on earnings and performance in Latin America - Management noted price recovery in certain provinces due to anti-involution policies, which may improve earnings [36] - The Latin American market is expected to grow further, supported by partnerships with platforms like TikTok and MercadoLibre [39] Question: Update on non-ecommerce platform businesses and operational capacity in Southeast Asia - Non-ecommerce business accounts for less than 10% of total parcels but contributes higher margins [44] - Current capacity in Southeast Asia can handle over 30 million parcels daily, with ongoing investments in capacity expansion [47] Question: Cost reduction potential and market share expansion plans - Transportation and sorting costs per parcel have decreased, with ongoing efforts to further reduce costs [51] - The company is evaluating potential new markets for expansion, with a focus on maintaining leadership in Southeast Asia [60] Question: Unit economics guidance and franchise model adoption - The company aims to balance parcel volume growth with ASP strategy, maintaining stable EBIT per parcel [72] - The network partner model is being implemented across Southeast Asia, with 30% of the network run by partners [77] Question: Cooperation with MercadoLibre and AI technology initiatives - Collaboration with MercadoLibre is progressing well, with significant potential for growth [90] - The company has deployed over 900 autonomous delivery vehicles in China, enhancing last-mile delivery efficiency [94]