Good afternoon, everyone, and welcome to CLP Holdings' 2026 interim results briefing. My name is Marissa Wong, Head of Investor Relations, and it's a pleasure to have you with us today.

I'm joined by our Chief Executive Officer, Mr. T.K.

Chiang, and our Chief Financial Officer, Mr. Alex Keisser.

Our interim results was announced with the Hong Kong Exchange at midday today. Both that announcement and today's presentation are now available on the CLP IR website.

Today's session is being recorded. The archive will be posted on our website shortly after we conclude.

Before we begin, I'll direct your attention to the disclaimer on slide 2. Today's agenda will start with T.K.

providing our first-half highlights. Alex will then talk us through the financial results, and T.K.

will return to share our strategic outlook. We will then move to a Q&A session, and we very much welcome your questions and engagement.

With that, I'll now hand over to T.K. to begin the briefing.

Over to you, T.K.

Thank you, Marissa. Good afternoon, everyone, and thank you for joining us.

Now, the first half of 2026 was a strong start to the year, set against continued global energy market volatility and evolving market conditions. The group delivered solid earnings growth while positioning itself to capture the opportunities reshaping our sector: rising demand from data centers and accelerating energy transition.

Our performance reflects three consistent themes. First, a strong earnings performance led by our regulated Hong Kong business, where continued capital investment is driving stability and growth, alongside improved contributions from every region.

Second, we made tangible progress on portfolio value creation and capital discipline. We delivered a decarbonization milestone with the sale of Jhajjar coal plant.

We delivered capital-efficient funding through our inaugural Panda bond issuance, enabling self-funded structure for our Chinese Mainland renewables platform. We continued to direct gross capital towards enabling infrastructure for the energy transition with a clear focus on returns.

Third, our operational excellence and transformation remain at our core. Our group-wide efficiency and digitalization agenda is delivering recurring benefits, while our transformation programs are building leaner businesses, positioning us for the next phase of performance.

Now, turning to the highlights. Financially, the group's operating earnings before fair value movements were up 10% to over HK$5.7 billion.

Total earnings have risen 7% to nearly $6 billion on the gain of Jhajjar sale. The board has recommended a second interim dividend of 63 cents per share, bringing total interim dividends to $1.26 per share.

Safety remains our highest priority. Following the loss of a contractor working at Castle Peak Power Station in May, actions from the investigation are being implemented across the group.

Total recordable injury rate improved during the half as we continue to strengthen critical risk management and safety controls. Reliability, measured by unplanned customer minutes lost, was slightly impacted by extreme weather and power supply incidents in Hong Kong.

Nevertheless, Hong Kong's network reliability stood at 99.999%, which remains exceptional by world standards. On the customer front, we added more accounts in Hong Kong, while competitive dynamics in Australia led to a decline in numbers.

In terms of generation, electricity sent out and capacity declined marginally, a result of our exit from Jhajjar. I'll now hand over to Alex for the financial results.

Thank you, T.K., and good afternoon. A summary of the key metrics.

Earnings before interest, taxes, depreciation, and amortization, and fair value movements, or EBITDAF, increased by 9% year-on-year to HK$13.6 billion. Operating earnings before fair value movements increased by 10% to $5.7 billion.

Adjusted for the fair value movements and items affecting comparability, total earnings were close to $6 billion, an increase of 7%. Capital investments of $7.3 billion was lower despite higher Hong Kong SoC capex, reflecting disciplined capital allocation across our businesses outside of Hong Kong, where we continue to invest selectively.

Total dividends per share declared for the first half 2026 was $1.26, same as last year. Let's go now into the details.

The group performance was anchored by a strong Hong Kong business performance and supported by improved contributions from every region. Corporate cost allocation optimization improved our unallocated expenses by 17%, coming into a fourth consecutive year of savings.

Below the line, fair value movements on EnergyAustralia's forward energy contracts were less favorable compared to a year ago. Together with a $356 million contribution in items affecting comparability, primarily the gain on Jhajjar divestment, total earnings rose to nearly $6 billion.

I'll now take you through the detailed performance and outlook for each business unit. All variances will exclude foreign exchange to reflect underlying performance of the business.

Beginning with Hong Kong. Hong Kong delivered another strong result with operating earnings up 6% to $4.8 billion.

Earnings growth reflected continued capital investments, expanding the asset base, together with lower interest costs on a lower-rate environment and proactive refinancing. We invested $4.8 billion of capex, the majority in transmission and distribution, supporting Northern Metropolis development, data center expansion, and grid upgrades.

On demand, local electricity sales rose 3.6%, reflecting stronger economic demand. Data center demand grew close to 12%, and transport electrification continued to accelerate, reinforcing their roles as key structural growth drivers.

Looking forward, our HK$52.9 billion development plan remains on track. Near term, we are expanding infrastructure for the Northern Metropolis and data center connections alongside continuous grid reinforcement.

As the Hong Kong government developed its first five-year plan, electricity will be central to Hong Kong's long-term growth and energy security. On decarbonization, we completed the clean energy transmission system upgrade and continue to work with government to expand zero-carbon imports over time.

On supply security and tariffs, our policy remains resilient despite global volatility, underpinned by a diversified fuel mix. Higher international fuel costs have led to an increase of 4% in average net tariff, and we will continue to support customer affordability through a special fuel rebate for eligible customers from August to October.

Turning to the Chinese Mainland. The sector is in transition: tariff reform, a supply-demand imbalance amid softer economic demand, and renewables building out ahead of grid and storage capacity.

Against this backdrop, operating earnings held broadly stable at $899 million, as nuclear reliability and renewable capacity additions absorbed tariff pressures and renewable curtailment. Nuclear contributed positively with strong generation and reliable operation at Daya Bay and Yangjiang.

Renewables also contributed positively, as five new projects offset higher curtailment and lower tariffs, as well as weaker resources. Our minority coal portfolio saw stable dispatch at lower tariffs, reflecting market competition, partially offset by lower coal costs.

Looking ahead, we executing our transformation program, which T.K. will cover later in the presentation.

We do expect continued market exposure to weigh on Yangjiang's earnings, as well as renewable and coal-fired tariffs. We are actively managing our gross development of renewable investment in national load centers.

Growth is self-funded, anchored in our Panda bond program and a clean energy fund now in development. New earnings will be underpinned by long-term fixed revenues through mechanized tariffs, corporate PPA, and green energy certificates.

The pipeline remains healthy with close to 1 gigawatt in execution, including CLP China's largest wind projects to date. To EnergyAustralia.

Operating earnings were up 22% to $223 million. EnergyAustralia benefited from strong retail recovery that was partially offset by the energy business due to a softer market condition.

On the energy side, good commercial availability across Yallourn, Mount Piper, and the gas portfolio helped mitigate softer wholesale prices and lower price volatility. Higher fuel costs and the non-repeat of last year's Lake Lyell gain also shaped the results.

The customer business saw improved margin on the carry-through of last year's repricing and recontracting, as well as lower bad and doubtful debt, notwithstanding softer customer demand and continued competitive intensity. Enterprise costs were higher, as anticipated, reflecting continued investment into the multi-year transformation program, including the Tata Consultancy Services partnership.

On outlook, we expect conditions to remain challenging. Wholesale prices and volatility have softened materially over the past six months, reflecting additional renewable and storage capacity, milder weather, and fewer supply disruptions across the NEM.

We expect the retail environment to remain competitive with margins aligned with this year's DMO and VDO determinations. Near term, current conditions will weigh on earnings, though our long-term views remains constructive, underpinned by electrification, data center load, and the pace of coal exit.

Against that backdrop, the reliability and flexibility of our portfolio and our transformation program are central to mitigating the changing market conditions. The transformation program is a deliberate cost-out, targeting around $250 million of enterprise cost savings by 2027 from the current cost base, excluding customer platform transformation costs and benefits.

On flexible capacity, we advancing close to a gigawatt of new battery and pumped hydro, with Wooreen and Hallett batteries under construction. Moving to Apraava.

The completion of Jhajjar sale marked a strategic milestone. Our Indian non-carbon platform continues to scale, with operating earnings up 41% to $205 million, though lifted by one-off items.

Thermal contribution was lower, as Jhajjar contributing for only part of the period ahead of the March divestment. Renewable platform performance was affected by softer wind resources and generation.

Transmission was the largest contributor to growth, reflecting reliable operations and the non-repeat of last year's KMTL impairment. AMI earnings held steady, but with lower than planned revenue realization due to delayed project executions.

Group adjustments and corporate expenses were lower, reflecting interest income received on delayed payments thanks to the resolution of the non-operational Paguthan dispute. With Jhajjar now exited, Apraava's earnings mix shifts fully to non-carbon, contracted, regulated, and scaling into India's energy transition.

In renewables, near-term generation will be shaped by monsoon season. Across renewables and transmission, we continue to build out our portfolio.

Post period end, we secured two new transmission projects of roughly HK$4.5 billion, adding to our platform of long-dated revenues. Finally, smart metering continues to scale, with nearly 3.7 million meters installed, with rollout continuing across seven states.

Turning to Taiwan Region and Southeast Asia. 我们再来看看台湾地区和东南亚。运营利润达到了7,100万，增加了5,200万，主要是因为和平电厂的煤电发电带来的增益。那这些增益呢，受到了公司开支上升的影响，因为我们需要在本地区继续的去执行增长策略。展望未来，和平的利润可能会在第二季开始放缓，我们会继续的去评估各个 [unclear].

Beyond the existing portfolio, we continue to build towards a regional growth platform, with near-term execution focused on long-term contracted renewables in Taiwan Region. Turning to cash flow.

Cash inflow were healthy at $8.8 billion, up $1.7 billion, driven by higher EBITDAF from all business units across the portfolio, together with proceeds from the Jhajjar divestment. Total cash outflow were $11.8 billion, made up of $7 billion of capital investment and $4.9 billion of dividends payment.

Of the capital investment, $5.3 billion was directed to our Hong Kong SoC business and $1.6 billion mainly to renewable projects in the Chinese Mainland. Cash payment for dividends was higher as a result of the higher final dividends for 2025 financial year.

Finally, our financial structure remains strong. Net debt was higher than at the end of 2025, reflecting our dividend payment cycle with the higher final dividends paid in the first half, and was broadly in line with the level of the end of the first half of 2025.

Liquidity remains sound with around $20 billion of available facilities. We were active in the debt markets.

The team successfully refinanced around HK$9 billion banking facility and medium-term notes for the Hong Kong SoC business at competitive credit spread. CLP China issued its inaugural three-year 1 billion RMB Panda bond to fund renewable growth.

EnergyAustralia refinanced into a larger A$600 million syndicated facility. Our debt profile remains well-structured.

Maturities are well-spread, with a balanced mix of 50% fixed and 50% floating rate. Our prudent financial management continues to be recognized by rating agencies.

S&P's and Moody's reaffirmed our strong investment-grade rating for CLP Holdings, CLP Power, and CAPCO, all with stable outlook. Our financial situation provides a solid foundation to fund our growth and returns.

I'll pass it now over to T.K. for the strategy update.

Thanks, Alex. Now, the results Alex has walked you through show a group delivering with resilience.

That's the foundation from which we are executing our strategy. Now, let me start with our regulated business in Hong Kong.

Our approach is consistent and deliberate: invest in long-life infrastructure funded with discipline and grow our regulated asset base in step with the structural demand of a modern economy. Three things that define that strategy.

First, a stable regulatory regime. The Scheme of Control framework has stood for over 60 years, providing predictable returns and dependable earnings that are fundamental to our strength.

Second, long-term infrastructure investment. The HK$52.9 billion five-year development plan anchors the capex and Hong Kong's growth agenda, with a major focus on expanding the power system to meet demand from data centers and investment of HK$2.5 billion for the initial phase of Northern Metropolis buildout.

Third, operational excellence as the enabler. Sustaining a world-class electricity system is fundamental to how we invest and grow, underpinning our reliability, cost discipline, and safety.

More broadly, the policy backdrop remains constructive, with electricity recommended as a strategic and economic infrastructure in the government's first five-year plan, reinforcing the long-term durability of our Hong Kong business. Now, building on that foundation, we are continuing to grow on the Chinese Mainland, and doing it with discipline.

We are mindful of the near-term environment: reform-driven tariff pressure, a supply-demand imbalance, and integration lacking the pace of renewables growth. We are calibrating to these conditions, focusing on three things to lift the quality of the platform as we execute towards 5 gigawatts by 2030.

First, transformation to enhance returns and drive sustainable growth. We are centralizing operations to strengthen efficiency, with a deeper presence in Beijing and a new business center in Shanghai.

At the same time, we are driving cost optimization through a more streamlined operating model, targeting around HK$100 million of saving from our current cost base. Second, and this is the heart of our discipline: value over volume.

Every project must clear a minimum return hurdle, a low double-digit equity IRR. We are deliberate about where we build, targeting locations with strong demand and lower curtailment risk, and locking in fixed long-term tariffs to secure that return.

Third, our self-funding model is well-advanced to be in place by the end of the year. The inaugural Panda bond gives us a low-cost onshore funding and a clean energy fund in development with further enhanced capital efficiency.

The national energy transition is a powerful tailwind: 240 to 320 gigawatts of renewable energy per year, RMB5 trillion of grid investment, and 300 gigawatts of storage by 2030. Our shift towards a disciplined, self-funded, and return-led platform positions us to capture that opportunity.

Now, in India, Apraava's growth is now about scaling a non-carbon platform in one of the world's fastest-growing energy markets. With Jhajjar now sold, our earnings mix is built firmly around renewables, transmission, and smart metering, while we continue to explore adjacencies like C&I and batteries.

Our ambition is around 9 gigawatts of non-carbon capacity by 2030, building into India's national target of 500 gigawatts. Progress has been sound in a highly competitive market.

No new bids were won in the first half, but post period end, we secured two new transmission awards, roughly 800 megawatts equivalent. Now, that is in line with our ambition of roughly a gigawatt of growth a year, and it reflects our discipline: we bid only where returns and risk meet our thresholds.

Growth is funded through a disciplined capital stack of self-generated cash and capital recycling, with projects targeting minimum low to mid double-digit equity returns. The result is a contracted and predictable earnings base secured by long-term agreements: 35 years regulated tariffs for transmission, 25 years for renewables, 10 years for smart meters.

Apraava remains a capital-efficient platform that enhances our earnings and long-term growth profile. Let's turn to Australia, where growth of flexible asset is central to delivering value and earnings resilience as the market transitions.

As renewables enter the system ahead of coal retirements, flexible, dispatchable capacity becomes increasingly valuable to firm renewable outputs, capture the widening daytime-to-evening price spread, and support reliability through the peak. We have an executable pipeline of high-quality projects, targeting around 3 gigawatts by 2030, delivering across four dimensions.

We build our existing sites, making use of land, grid connections, and workforce already in place, which reduces lead times and capital intensity. Execution is supported by our repeated success in winning under the federal Capacity Investment Schemes, which supports project economics.

Our partnership models on large projects delivers capital efficiency and enhanced returns, targeting minimum of high single-digit equity returns and enabling EnergyAustralia's energy transition on its own balance sheet. EnergyAustralia's transformation program is building a more efficient and competitive business, improving customer outcomes, and lowering costs over time.

In the first half, Orana battery reached commercial operations, adding 200 megawatts of flexible capacity through an offtake arrangement. Hallett and Wooreen batteries are under construction, and Mount Piper battery is progressing towards final investment decision.

That brings me to a longer-term opportunity at the Yallourn site. While the retirement of Yallourn in 2028 marks the end of coal-fired generation on the site, it also gives us the option to repurpose it.

The hardest and most expensive parts of an energy project are already in place: around 5,500 hectares of freehold land, existing high-voltage transmissions at 220 and 500 kilovolts, secure water access, and a skilled labor workforce. We are exploring a range of development pathways, centers on the growth in large-scale data center demand.

The initial configuration includes up to two 1-gigawatt data centers with scope to expand over time as demand develops. Supporting energy infrastructure would be developed progressively, including battery storage and dispatchable firming generation using infrastructure already in place.

Now, these are early stage: planning approvals and community consultations are still ahead. We'll assess each pathway on its own merits.

The value in Yallourn is optionality: a way to extend the infrastructure we owned beyond the coal plant's life, and as and when the economics supports it. Now, before I hand over, let me bring this together in terms of what we believe makes CLP a compelling investment.

Our proposition rests on four pillars, built by a simple idea: we are anchored in Hong Kong and growing across Asia-Pacific energy transition. Earnings resilience is the foundation.

Our regulated Hong Kong business provides a stable core, and our regional platforms building towards sustained earnings growth over time. The second is portfolio value creation and efficient capital growth through asset rotation, portfolio management, and investing in the infrastructure enabling the region's energy transition while remaining firmly focused on returns.

The third is operational excellence and transformation: cost optimization, digitalization, and our transformation programs in Australia and the Mainland, building structural efficiencies and more competitive businesses, and helping to self-funded our growth. The fourth is shareholder returns: a commitment to consistent, sustainable dividends supported by resilient earnings, balance sheet strength, and disciplined capital allocation.

Taken together, these principles guide how we run the business, providing stability today and positioning CLP to create long-term value as the region's energy transition accelerates. I'll now hand it over to Marissa.

Thank you, T.K. Thank you, Alex.

We will now move to the Q&A portion of today's briefing. For those analysts joining us on the Zoom platform, please use the raise hand function to ask a question live.

For those webcast participants, please submit your questions using the Q&A box located at the bottom right-hand corner of your screen. With that, let's begin, and we'd love to hear from you, Pierre.

If you can hear me, go ahead and ask your question.

Hi. Thanks, T.K., Alex, and Marissa.

Thanks for giving me the opportunity to ask questions. Firstly, congratulations for your first-half results.

I have three questions. The first one is about dividend.

I can see that in first half this year, you reduced your capex by 11% year-on-year. Free cash flow also increased year-on-year.

It seems without increase your DPS. Why don't you increase your DPS in the first half?

I remember in the last two year, you also increased the DPS by 5 cents, but mostly in the fourth quarter. Are you going to do the same thing this year?

Second questions is about your Australian retail business. It's good that seeing your retail customer business turned profitable in first half this year.

On page 12 of your presentation material, you mentioned that the retail electricity price in Australia will be lower because of the regulatory reform in 2026-2027. Are we expecting the improvement of the retail customer business in the first half should be relatively short term, and then second half this year or 2027 would become worse again?

The last question is about your Australian business as well, but for the wholesale energy business. On page 43 of your presentation material, you showed the wholesale price there.

It seems that the wholesale price keep declining. Are we expecting your wholesale energy business earnings will continue to drop in the second half, or you can expect some capex mentioned by your management earlier that the contributions from the new project will be able to offset the reductions or the negative impact from the wholesale price?

Thank you.

Thank you, Pierre, for the questions. I think for the dividend, our dividend policy has always been providing consistent and steadily growing dividend, provided that the underlying business can be sustainably growing.

At the end, it will be the board's decision on determining the level of dividend. Our target, obviously, is to hopefully to grow the business and then providing an increasing dividend.

I think you'll see in the coming quarters what kind of dividend we will provide. For Australia, I think you rightly pointed out several challenges ahead of us.

Firstly, in terms of the retail business, the VDO and the DMO coming out has been reduced. Now, but that's because of the reduction in the wholesale market.

That's why the VDO and DMO actually came down. More importantly, I think for retail business is all the competition between the retailers.

We do see there are increasing pressure of competition. In the second half of the year, we do see pressure on it.

More importantly, I think, is how do we improve our business. We are now undergoing transformation by outsourcing our back-end office to Tata Consultancy Services.

Last year and this year are period where we are doing the transformation, and we do see benefits coming out this year. Then more benefit will materialize next year and in '28.

Regarding your point about wholesale price, I think that could even be more important because I think in terms of the changes in the market regarding weather condition being much milder this winter, more storage projects has come online. The demand has been reduced and the volatility of the wholesale market has also reduced.

Then at the same time, the generation plants are all quite reliable, coal generation, renewable energy generation. We do see this quite significant reduction in the wholesale forward price.

In the coming few months or maybe even in '27, I think this will continue. Over medium to longer term, I think because of the retirement of coal generation, we do see support to the wholesale price.

Our flexible fleet, I think the value actually would be more during that situation. As I mentioned, for transformation, EnergyAustralia is going to become more competitive.

We are also looking at different capital kind of efficient structure. For example, for our Wooreen battery project, we've successfully found a partner to invest in the project.

Then at the same time, we have a PPA arrangement from the asset owner to EnergyAustralia. That not only make the capital more efficient from EnergyAustralia perspective, but also help us obtain more opportunity to increase the return in this market.

Thanks, T.K. Next questions from our analysts is from J.P.

Morgan, Ventor. If you can hear me, go ahead and ask your question.

Hello. Can you hear me?

Yep, can.

Okay. Thank you, T.K., Alex, and also Marissa.

Congratulations on the results as well. I have also three questions.

My first question would be on the Hong Kong business. Just wondering do we have any updates on discussion or planning on the next development plan starting from 2028?

Also, do we have any updates on our view on the potential Mainland nuclear investment by CLP? That's the first question.

On the second question, we saw from our first-half results Chinese Mainland results. For the wind business, although we saw some curtailment and tariff impact, we actually see meaningful increase in the operating earnings of the wind segment.

Going into second half or into next year, how should we think about the renewables profits from Chinese Mainland? The third question would be on our nuclear plants in China.

We saw there was slight improvement in Daya Bay plant, and Yangjiang saw some impact from tariff decline. What should we think about the nuclear outlook into second half and also next year?

Thank you.

Thank you. Now, for Hong Kong, I think for the development plan, the current plan covers the period from '24 to '28.

The process under the Scheme of Control is that for the next development plan, we're going to discuss with the government probably in early '28, if not late '27. I think right now, I would not have any particular information that I can share.

Now, regarding the potential nuclear imports, I think that's more longer term to achieve the 2035 decarbonization target as set out by the Hong Kong government in the Climate Action Plan 2050. By 2035, we need to achieve 60% to 70% zero-carbon energy in our generation fuel mix.

The idea is to bring zero-carbon energy from the Mainland to Hong Kong, which consists of mainly nuclear, but also with some renewable energy. Now, I think the studies still continue.

I think it also depends on the government dialogue with the Mainland authorities. At the same time, you may be aware that the Area 136 in Tseung Kwan O, which is basically a piece of land with reclamation to be carried out, will be used or it has been earmarked for building the receiving station for that kind of zero-carbon energy from the Mainland.

For that particular project, I understand the government is about to start the reclamation, and we are working very closely with the government on progressing the project. Regarding China, now for wind resources or wind generation, because in China, we have a few new wind projects coming online, so that adds to the revenue as well as profit.

At the same time, overall speaking, there is, I would say, more serious curtailment issues in China because of the supply-demand imbalance situation right now. The overall curtailment percentage in the first half is about 15%, which compares 9% last year.

We do see some increase in curtailment, which would be due to either so-called technical reason because of the grid constraint or because of supply-demand imbalance. Going forward, actually in China, our focus is to make our business more competitive.

We are now also doing a transformation in China, basically optimizing the cost, centralizing operations with a shared service structure. We would enhance our presence, as I mentioned, in Beijing office, and we'll set up a new office in Shanghai so that we can be more closer to the authorities, to our stakeholders, to our partners, and also to our customers.

At the same time, we will be going over value than volume. We'll be focusing markets or provinces that are having higher growth, higher tariff level, lower curtailment risk.

Some of them actually we are also looking at more expansion project where our cost will be lower so that we can, overall speaking, we can increase our return. At the same time, we are also looking at some more capital-efficient way of doing the business.

For example, Alex also mentioned the Panda bond. That gives us actually a low-cost funding source.

We are also exploring what we call the clean energy fund, which is also another platform that we can not only enhance our return, but also make our capital more efficient. The third question, I think, is more on nuclear.

Now, nuclear, Daya Bay and Yangjiang are quite different. Daya Bay is more like a cost-based return because there's a PPA signed with CLP Power.

Basically, it's a cost-plus approach. It depends on the performance of the plant.

There could be some slight adjustment, but mainly it would be a cost-plus approach. Now, for Yangjiang, because of higher reliability in the first half, we can see there are more generation, but which is offset by the lower tariffs in Guangdong.

There's a slight downward adjustment of the nuclear business. Now, going forward, I think the nuclear business will be relatively stable in the second half because we foresee the generation will be more or less follow the same kind of reliability level.

Thank you. We've got Yonghua from HSBC on the line.

Yonghua, go ahead and unmute yourself and ask your question.

Thank you. Can you hear me?

Yes, we can. Thank you.

Thank you. Congratulation for your good results.

I would like to ask two question. I would like to ask about EA's plan to monetize the Yallourn portfolio.

Currently, EA operates only in Australia's retail and wholesale markets. In the longer term, is EA looking to expand business beyond traditional utilities into area like property development or EPC services?

The second question is, could you please provide update for your new business entrance into the Vietnamese power market you discussed in the previous honest report? Can I add one more?

If possible, could you please provide any breakdown in the current SoC capex for the Northern Metropolis project? If possible, could you please provide SoC capex outlook for the Northern Metropolis project in the future?

Thank you.

Thank you. Thank you, Yonghua.

Now, for EA, I think for the Yallourn Energy Security Precinct, that is a piece of land with all the infrastructure ready: transmission connections, water access. It is a I would say very good site that we can develop into a powered land for data center.

That's the current thinking. The initial phase could be building two 1-gigawatt kind of a scale of data center, together with battery storage because we will basically power the data center with renewable energy that we purchase, and then combined with the battery storage, we make it a firmed renewable energy supply.

At the same time, we're also thinking about gas generation, which can provide fast response and also backup capacity to further support the power supply for the data center developments. I think that's more the current thinking.

I think currently is still in a very early stage. We have not worked out the so-called business model for this one.

We are now planning to do kind of market sounding and try to collect more feedback from the market what the market wants. Now, I think the second question is more the new investment, right, in the region, their growth market.

I think near term, we are more focusing on Taiwan Region because in Taiwan, the regime is very mature. We have PPAs with Taipower.

We have also corporate PPAs with big corporations, in particular TSMC. That would be the more near-term focus.

For Vietnam or for Laos, I think it's more medium term because I think doing business in those markets will take some time. Also, for example, in Vietnam, I think the market it's also developing.

There are new regulations that are favoring corporate PPAs, which we think is good. We are also monitoring the development of the regulation closely.

I think the third one on capex, yeah, for Northern Metropolis, I think within the current development plan, the total capex is about HK$2.5 billion. It basically span across the whole development plan period from '24 to '28.

Beyond '28, it will be the next development plan, which as I mentioned at the beginning, we still have not so-called started the preparation yet. I think the discussion with the government will only be carried out in early '28 or if not end '27.

I don't have any particular information that I can share.

Yonghua, if you refer on slide 18, that gives you the breakdown: 72% into T&D for the SoC capex for this development plan. We've got a question from JiQiang from Huatai.

Qi, if you can hear us, please go ahead and ask your question.

Thanks, T.K., Alex, and Marissa. I appreciate the opportunity to ask questions, and it is encouraging to see CLP's results grow in the first half of 2026.

I have a question related to the Hong Kong business. Could you please provide further details regarding the Tseung Kwan O zero-carbon power receiving terminal?

We would like to know the projected capex scale of the power terminal, the expected year to commence capital spending, and the types of electricity to be imported in the future. Specifically, can we confirm whether the imported power will be 100% nuclear power?

Can we understand that project capex will likely to be covered under the capital expenditure envelope of the next five-year SoC development plan? Could you advise whether this view holds?

Thanks.

Okay. Thank you.

Thank you for the question. Now, for the so-called zero-carbon receiving station in Tseung Kwan O, that will be built in the Area 132.

As I mentioned, because this is to fulfill the target set by the Hong Kong government in the Climate Action Plan 2050, by 2035, we need to have that zero-carbon energy. That means it's still quite long time ahead.

Building such kind of facility, the building time actually may not be that long. More importantly actually is the design, the planning, as well as the permitting for such project because this is a cross-border kind of project from Guangdong to Hong Kong.

Now, obviously, for this development plan, that would not be any significant capex. There could be some studies that will be done.

Then maybe even in next D plan from 20 2029 to 2033, I think that would be the time that will capture most of the capex of the project, if there are any, because the commissioning year probably will be 2035. In terms of the types of import, again, if you look at government's Climate Action Plan 20 2050, out of the 60% to 70% zero-carbon energy, majority will be nuclear, but then the government also specify about 7.5% to 10% will be renewables.

Some of those renewable energy will be from local. For example, Hong Kong government is developing the waste-to-energy facilities in Hong Kong.

CLP is also doing feed-in tariff, we have actually more than 400 megawatts rooftop solar already in Hong Kong. All these are like local renewables.

In order to fulfill the 7.5% to 10% renewable energy, we need additional projects. That could be fulfilled either locally or through this new zero-carbon import.

For example, actually, a few years back, CLP did propose building the offshore wind farm in Sai Kung. Now, at that time, the government thinks that the cost of that wind farm is still high and they foresee cost will come down over time.

That's one possibility. Obviously, importing renewable energy from the Mainland could also be another option.

We'll see when we have more information. For renewable energy import, actually, the lead time is even shorter because, for example, building a wind farm, it could be two to three years.

Importing renewables from the Mainland, also the lead time will be shorter. I think the focus is more importing nuclear rather than talking about renewable in the short to medium term.

We have Rob Koh, Morgan Stanley. Thanks for joining us from Australia.

Go ahead and ask your question.

Hello. Can you hear me?

We can. Thank you.

Yes. Thank you very much.

Congratulations on the result. My first question is in relation to the EnergyAustralia transformation program, and I guess you had previously flagged the Tata back office side to that, and I hope that's going well.

Is there any update on billing platform for EnergyAustralia? Then my second question is in relation to the Yallourn data center precinct that you have announced, which looks very exciting.

I guess just to try to understand the opportunity for CLP in that opportunity, could you maybe comment on whether developing the data center helps you to defer rehabilitation or is it mainly about the power development that comes with that, seeing as Australia has a bring-your-own-power requirement coming? Then finally, if it's very early days, but if you could comment on availability of fiber in that area, and if you are proposing to join, I guess, the Telstra Aurora network?

Okay. Thank you for the question.

Now, for the EnergyAustralia transformation, I would say the progress has been good. It's pretty much on track.

Our plan is to basically spending some cost last year and also this year, and then generate benefits from this year onwards. Majority of the benefit will come next year and '28.

Our current assessment is that this transformation can bring down the back-office costs, the overheads, by about HK$250 million in basically next year based on the current cost base. I think that's pretty much on track.

Now, for the billing platform, we are in advanced stage of developing this. The current plan is to come to a conclusion on the solution towards Q4 this year.

With that decided, then the project will take about 2.5 years to complete. The benefit actually will only materialize when the project is completed.

That's about transformation. Now, for the Yallourn Energy Security Precinct, I'm also very excited about it.

As I mentioned, I think it's still in a very early stage. The initial idea obviously is the development of the site itself is already something that can add value to the business.

As I just mentioned, what would be the business model with data center operators at this moment, we do not have any particular idea yet. We have some options in mind, and we are going to do some market sounding exercise and hear feedback from the market.

I think at least, as you mentioned, providing power, for example, through long-term PPAs, definitely is a core value to this project. Whether there would be other opportunity, I think we'll do more study to try to identify.

On the question of whether it delays the exit of Yallourn?

Oh, no. At this moment, I don't think there would be any so-called delay of exit of Yallourn.

We have an agreement with the Victorian government on closing Yallourn in middle of 2028, and there has been no discussion about so-called extending or delaying the closure of the power station.

We have Pierre Lau with a follow-up question from Citi. Pierre, go ahead.

Hi. Thank you for the time.

Just one simple questions. Regarding the data center projects potential to be built at the Yallourn site, may I confirm that it will not be invest by CLP?

It will be invest by third party. Is it correct?

Thank you, Pierre. No, as I mentioned, the business model, we still have not come to so-called conclusion.

It's still in a very early stage. We are going to do some market sounding.

EA being a electricity, I would say, utility, obviously, we will be looking at the electricity service first. I think we will keep an open mind about the business model of the data center developments.

We do have one question online from Otis Fan, Bloomberg Intelligence. He's asked about nuclear, which I think we've answered quite comprehensively, but maybe a position on where we are for the business in terms of geopolitics and impact from the Iran war.

Can you provide a response to that?

You mean the whole overall CLP business, right? Okay.

Now, I think the Middle East conflicts or war basically resulted in very volatile international fuel markets prices. In different markets, actually, there are I would say different impacts.

Now, in Hong Kong will be more relevant because Hong Kong, all the fuels are imported from outside Hong Kong. Right now, we have from generation fuel mix perspective, more than 50% from gas, one-third from nuclear, and then the rest coal.

Gas will be the major fuels for generation in Hong Kong, and the gas price is linked with oil price. The way how we try to mitigate is first, we have to ensure that we have sufficient gas for Hong Kong.

Right now, we have three sources of gas: two from the Mainland and one through LNG from the global market. In terms of supply, I would say we are slightly impacted because of the LNG supply, there have been some issue.

Overall speaking, we do not have any problem of having sufficient supply for generation in Hong Kong. Now, in terms of price, because of the linkage with Brent oil price, there will be some changes in the gas price.

Because of the design of those contracts, they are taking rolling average of the oil price. There will be some lagging effect and smoothing effect of the gas price out of this volatile oil price market.

At the same time, we will also pass through all the costs to the Hong Kong customers through a monthly fuel cost adjustment mechanism. From that angle, actually, we are pretty much protected in the Hong Kong market.

We'll ensure that we'll continue to ensure sufficient supply to ensure reliable electricity supply. Now, in Australia, we do not see any particular volatility in the wholesale market because of this Middle East war.

At the same time, we're also mindful about the potential impact on gas. In Australia, we have our gas contract, which has oil exposure, basically pretty much hedged already, at least in the coming few years.

We do not see any particular issue. Now, for China and India, they are not exposed to this so-called oil or international fuel price issue, so.

Thank you. Thank you, T.K.

Thank you, Alex. I think that's all the questions that we have.

Thank you all very much for the very good questions and for taking your time to join us. Should you have any other follow-up questions, my team and I will be available after this briefing to assist.

With that, we will conclude today's session. Thank you all, and goodbye.