Good afternoon. My name is Gerald Ma.

To my right are Mr. Simon Man and Mr.

Seng Chiu, two of my fellow Exco members. We are your presenters for the CK Asset Holdings Limited 2026 interim results.

We will also be taking on your submitted questions after the presentation. Let's get right to it.

Interim results highlights: underlying profit up 5%, and the dividend per share increased to 41 cents per share. If you take the $6.6 billion of underlying profits, or $1.90 per share, setting off against various adjusting items such as change in fair values in our REITs, change in fair values in investment properties, reduction in value of an associate, and disposal gains of UKPN and UK rail, will give you the profit attributable to shareholders of $8.7 billion, or $2.48, up 37.8%.

Dividend per share up 5.1%, corresponding to the increase in underlying profits, and net book value up almost 1% to $114.31. Principal activities analysis: Property sales revenue gone up three times to $21.6 billion, but profit contribution was only $765 million.

More on that later. If you look at all the other divisions: property rental, hotel and serviced suite operation, property and project management, pub operation, infrastructure and utility asset operations, revenues were all up, and profit contribution were all up with the exception of the infrastructure and utility asset operation division, mainly because of the disposal of the two joint ventures that we had.

Total revenue was $54.5 billion, and profit contribution $9.5 billion. 60% of our revenue, or $32.85 billion, was recurrent in the first half, and 92% of profit contribution, or $8.7 billion, is also deemed recurrent in the first half.

Profit contribution by region: Hong Kong was 35%, the UK almost 34%, Germany 9%, Australia and Canada and the US are 8% respectively, and other European countries, mainly our operations under ista, $453 million, accounting for almost 5%, and the mainland was 1.6%. Very well diversified.

If we look at the individual divisions: Property sales, again revenue $21.6 billion, profit contribution $765 million. The booking of Blue Coast 1 and 2 lifted revenue to over $21 billion.

Overall development margin was still quite low, 3.5% in the first half. If you look at the different regional contribution: Hong Kong gave us $626 million of profit contribution, margin was 3%.

The mainland was somewhat irrelevant in the first half, very few bookings and very few projects sold, only $48 million of contribution. The UK, namely Chelsea Waterfront, had $300 million of revenue and almost $100 million of contribution.

Margin was healthy, 32.3%. Others is mainly a piece of agricultural land in Queensland, Australia, which we sold at a negative margin.

Major contributors from Blue Coast $332 million, Borrett Road Phase 1 gave us $130 million, and Chelsea Waterfront just over $100 million. We still have over $6 billion of contracted sales not yet recognized, of which a little bit over half is scheduled for recognition in 2026.

Turning to the rental division: The performance in the first half was quite resilient. $3 billion of revenue, profit contribution $2.4 billion, and margin 78.5%.

All three metrics went up a little bit. If you look at the revenue by use of property: Retail, we still had a bit of negative reversion, was down 4.8%.

Office, because of the contribution of CKC2, went up 4.8%. Industrial buildings had a pullback as well, but more than compensated by our contribution from the social infrastructure sector, up 6.1% to $712 million.

Others are mainly the residential and car parks revenue contribution. Major contributors from Cheung Kong Center $464 million, Hutchison Logistics Centre $308 million, and the Whampoa retail complex $299 million.

We have a total of 24 million square feet of investment properties. We recorded a decrease in fair value of investment properties of $2.1 billion.

This is before tax and before MI. If you look at the change in fair value net of tax and MI, the numbers on the right about $1.5 billion, and the bulk of that came from a write-down of Upper West Shanghai, both the office and commercial.

Altogether that's over $900 million. Hotel and serviced suite operation: We had a solid contribution from this sector in the first half.

Room rate had decent positive movement. The daily hotels went up by about 8%, and serviced suites went up by about 4% in terms of average room rates.

Occupancy was very steady, 88% for hotel rooms and 90% for serviced suites, giving us a good revenue increase of 6.3%. Profit contribution went up by 7.9%, and margin also improved slightly.

Property and project management: 246 million square feet under management, very steady revenue and profit contribution, and margins always healthy 40+%. Pub operation: We have a total of roughly 2,500 pubs, about 1,500 of them are what we call managed pubs under pub company, about 1,000 of them are under the pub partners division, what we call tenanted pubs or franchised pubs, and then we have two breweries, one in Scotland, one in England, producing and distributing our beers.

On the back of still very tough macro conditions in the UK, the division actually delivered a decent performance in the first half, mainly because we had a one-off brand disposal. We sold a brand called Old Speckled Hen to a Spanish brewer, which gave us a bit of a boost, as well as a few asset disposal.

The profit contribution went up 14.3% compared to the first half of 2025. The next few pages I will defer to my colleague, Seng.

Thank you, Gerald. We have delivered a very solid performance across our infrastructure business.

The profit contribution, it's essentially flat to 2025 and it comes in at about $4.6 billion. This is despite we only have 4 months of contribution from UK Power Networks, which was disposed during the year, and also bearing in mind that we have not captured in this number the interest income that we earn on the proceeds that we got from UKPN and also from Eversholt disposal.

Overall, I think most of our businesses actually has performed very well and as planned, benefiting really from the positive inflation environment, and also we have positive foreign exchange movement in our favor also during this period. Talking a little bit more on the disposal of Eversholt UK Rails and also UK Power Networks: Both were done obviously in the first half.

For Eversholt, which is our rail leasing business in the UK, we sold the whole business for £1.1 billion, of which our share is 20%, and that result in a gain of HK$826 million from the transaction. For UK Power Networks, as you all know, it's a major transaction for the group, the overall equity value that we disposed that was close to £11 billion, of which £2.1 billion it's CK A share.

That result in our profit of disposal from the transaction HK$8.9, almost HK$9 billion. There's no any further update on other divestment at this point.

We obviously did both of these deals to realize shareholder value from these investment, and also bring us proceeds that we're looking to invest obviously subject to meeting our return requirements.

Simon will go through the next few pages for us.

Okay. At 30th of June 2026, the group's interest in the three listed real estate investment trusts remain about the same: 35.1% in the Hui Xian REIT, which own and manage 11.8 million square feet of hotel and serviced suites, office and retail properties on the mainland; 25.5% in the Fortune REIT, which own and manage 3 million square feet of retail properties in Hong Kong and Singapore; 17.2% in the Prosperity REIT, which own and manage 1.3 million square feet of office, retail, and industrial properties in Hong Kong.

Hui Xian REIT is an associate, and the group's share in net rental of $96 million, net rental profit of $96 million for the first half in 2026. It was $77 million for the same period last year, and received a distribution of $7 million this year, whereas only $3 million in the first half 2025.

Distribution received from Fortune REIT and Prosperity REIT amounted to $104 million this year. It was $107 million in the first half 2025, and were all recognized as investment income.

For gearing and maturity profile: At the interim period end day, the gross bank and other loans balance amounted to $43.8 billion, a decrease of $7.6 billion when compared with the balance at the year-end date of 2025. Maturity spread was $10.1 billion repayable within 1 year, $29 billion within 2 to 5 years, and $4.7 billion beyond 5 years.

Taking into account the gross bank balance and deposits of $65.7 billion on hand, the group had a net cash position of $21.9 billion. We have credit rating from Moody's, A2 stable, and from Standard & Poor's, single A, stable.

The group had a total landbank of 125 million square feet: 63 million square feet was under development, of which 6 million square feet located in Hong Kong, 54 million square feet on the mainland, 3 million square feet overseas; 24 million square feet was held for rental, of which 13 million was in Hong Kong, and 6 million on the mainland, 5 million overseas; 9 million square feet was held for hotel and serviced suite operation, with 8 million square feet in Hong Kong and 1 million square feet on the mainland; and 26 million square feet was held for pub operation in the United Kingdom. Overall, we have 27 million square feet of landbank in Hong Kong, and 61 million square feet of landbank on the mainland, and 34 million square feet overseas, mainly in the United Kingdom.

That's the formal presentation that we've done. Thank you, Simon and Seng, for helping out.

We now will begin our Q&A session. Again, the three of us will divide the work, and I know Sophia has been organizing the questions.

Sophia, you ask the questions to the three of us, and I will try to direct traffic if I'm not answering the questions myself.

Thank you very much, Gerald. While I collate the question, may I start with the first one?

How would you comment on your first half 2026 results?

I guess overall, we can say that the group is in a very strong position from a balance sheet perspective. However, macro trends and geopolitical developments are really becoming increasingly unpredictable.

This really calls for caution in our approach to everything, from how we manage our existing businesses, to how we assess any and all new opportunities. It really seems like abrupt changes in the macroeconomic environment and political environment, it's the only constant at the moment.

Personally I would say at times I do feel quite helpless. How can one plan for the future?

How do we run our businesses and project forward? It's very, very difficult.

We will manage our privileged position very carefully, while we continue to look for ways to enhance value for shareholders. Having said that, the underlying profit for the group increased by 5% year-over-year.

It does highlight the resilience of our recurrent income amidst all the uncertainties that we see, and demonstrates that our conservative and diversified approach is shielding us from excessive volatilities. The focus is on maximizing the performance of all of our group businesses, and cautiously move forward.

Next question.

I'll now start by asking question on the property division. Given the group's net cash position, what are your current thoughts on your preferred use of capital or choice of investments?

Seng, maybe help?

Sure. I think we, first of all, I think having, as Gerald mentioned, in his previous answer, we have a privileged position of having that cash, but at the same time, I think there is a lot of uncertainty right now in the market.

I think we we we look at the cash and want to put it into good use, and at the same time maintain our financial and investment discipline. I think that's very, very important.

I think we continue to look for investment with recurring income stream. I think that's, investment mainly, asset-heavy investments, long contracted cash flow, developed market, and, with a stable legal environment.

That's always has been our our our investment discipline. On top of that, I think opportunistically, we will try to proactively evaluate kind of opportunities in in Hong Kong and in Hong Kong properties, landbank in Hong Kong as well as in in China.

I think all being said, I think with the, uncertainty in the overall environment, we just need to try to make sure, the investment that we make meets our our our our our risk profile and also meets our return expectations.

Thanks, Seng. I I see the next few questions, if I if I may, the next three questions, maybe let Simon help me out a little bit.

Go ahead, Sophia.

Okay. Going into our principal activities.

What is your view on Hong Kong's property market?

We have seen a solid improvement in both volume and price for residential transactions in the first half of 2026. There is still good demand for high-end projects, like the one at Borrett Road, which continues to set record price.

While the market has been supported by strong local demand and purchases from the mainland, the momentum may slow down if the price of oil continues to be volatile, and the level of interest rates stays high or further increase. 其中影響樓市同經濟嘅因素呢，不明朗嘅因素呢仍然都喺度，都多嘅。

Thank you, Mr. Man.

Continuing on with questions on the property division: your development profit has dropped by 57%, even though revenue almost doubled, with development margins at 3.5%. How should we think about this, and what are your expectation on margins going forward?

For the first half-year results, the overall development contribution and margin were impacted by the low margin of Blue Coast 1 and Blue Coast 2, which were acquired at a high land cost. Projects like Borrett Road continue to give heavy margins.

Margin for other projects under development may be less than what we previously anticipated if prices stay at the current levels. Okay.

Could you comment on your mainland property sales activities?

The mainland property market was still difficult in the first half. We have launched Regency Garden Phase 5B in the second quarter, and the market response was positive.

We will continue to promote our projects with incentives to encourage sales. Somehow, it is still a purchaser's market.

都好多選擇嘅。

Okay. Next question is a very interesting one.

Do you have any comment on the potential impact on the property market from the recent announcements related to tax on offshore income from the mainland?

Maybe I'll take on this one and the next one. I think at a high level, these rules and regulations have always been there, it's not something new.

The recent announcement, I think, really provided a very clear guidance on compliance. That's what I would say on that.

The next question, please.

The next question is about our rental portfolio. The rental portfolio seems to be quite resilient.

Any further comments on that? Also, the Hong Kong office market sentiment seems to be improving.

What is the current occupancy rate for Cheung Kong Center Phase 2, CKC2? What are the trends in relation to Central Grade A office rents?

The strength of this division is mainly due to in the past 2, 3 years, due to our expansion and investment into the social infrastructure sector overseas, mainly in the UK, Germany, and Sweden. For CKC2, our our balance sheet strength and and lower cash cost for this project have allowed us to be a bit more patient than others in the last couple years when the market was not in a good place, the Central market was not in a good place.

I know a lot of you might have seen articles commenting on CKC2's latest occupancy being over 60%. I guess we can confirm that we are seeing decent demand, and CKC2 is beginning to provide a solid contribution to our rental income.

Hopefully, in Central, better days all for CKC2, better days are ahead. In general, there is a bit of momentum in Central, and landlords of quality buildings are beginning to be able to be more selective on the mix of tenants and asking rents.

Having said that, outside Central, it is still a very difficult market. Depending on the inflationary pressure, movement movement of interest rates, let's let's see.

It can it can go it can get better or or or not.

The next question is about our social infrastructure portfolio. How has your social infrastructure portfolio performed?

Are there plans to expand in the social infrastructure sector in other countries?

Seng, please.

Sure. I think when we say social infrastructure portfolio, these are basically in contrast to the Hong Kong rental segment, these are very long-dated contracts with inflation-linked rental adjustment every year.

We do benefit from the now higher than normal inflation in these different markets. Overall, the segment now contribute more than HK$750 million in the first half, which is a positive for us, because it does help offset some of the weaknesses we see in Hong Kong.

We have been looking for more opportunity obviously in the sector, and we look at the different types of assets in different countries. We try to stick to our investment thesis of trying to invest in triple net lease portfolio.

However, I would say overall, from our experience is that it is a difficult market, a lot of uncertainty. Despite our net cash position, we try to be actually very, very cautious, even when we're looking at this relatively more stable segment.

There are new opportunities, but we just need to continue to be very, very careful.

The next question is around our hotel and serviced suites. Hotel and serviced suites contribution have increased by 8%.

What were the main growth drivers, and would you consider converting some of your rooms to student accommodation, like other peers have been doing?

Seng, please.

Sure. I think Gerald mentioned in the presentation that the occupancy of our hotel and serviced suite segment is actually very stable, approximately 88%, 90% respectively.

It's obviously has achieved very, very steady growth in average room rate during this period. I think specifically on the whole student accommodation, it seems like it's a trend, as a fashion kind of trend that a lot of people are converting existing properties to meet the increased demand.

We have actually been serving this education sector overall with our serviced suites offering for a long period of time. Especially you can imagine our portfolio around the Hong Kong area, that's squarely right next to a lot of the schools.

I think overall, I think we're seeing this segment, I guess, indirectly also benefiting from the student accommodation demand, and we're happy to see that the division overall is performing very, very well.

Thank you. On to the pub operation division.

The pub division recorded an increase in contribution of 14%. What is your outlook for the pub industry, and should we expect more impairment at the end of the year?

I'll take on this one. This division had a decent result in the first half again, because we had some one-off gains.

The market environment in the UK continues to be very challenging for Greene King. There's inflationary cost pressures, softer market volume, dropping or lowering of level of disposable income, and changing policies.

We have to commend the team. Our cost rationalization and estate optimization programs and efficiency programs had improved our overall standard and the level of efficiency across the entire group.

There's more work to be done. We're nowhere near the finish line.

While if you look at on the policy front, the recently announced 20% reduction in business rates will definitely help the sector. On the other hand, what other people may not be paying attention to, there are other policy changes that were announced much earlier coming into effect, I think, very soon, I think in April, such as deposit return scheme.

We have to return used bottles or cans, or else we can't get our deposit back. There's a cost to it.

There's administrative burden and cost to it. There are changes made to the Employment Right Acts, which will put further cost pressure on the industry again.

We are really hoping there will be more good news in the coming budget announcement. This is a good example of what I meant earlier by unpredictability.

New policies in many, not just in the UK, but many countries trying to manage the national debt burden, the cost of living issue, and also how to increase investments in the UK, and then you also have other geopolitical events that are happening. It's very, very hard to draw up a medium-term plan to run the business right now.

即係用中文講，想預測都預測唔到，想估都未必估到將來會發生咩事，所以係小心為重。In terms of impairment, which was your other question, we'll know in a few months after discussing with our auditors regarding the long-term outlook for the sector, and the level and direction of travel of the UK gilt rates, which is the issue for the sector and the country.

Thank you. Please comment on the result of your infrastructure portfolio.

What are the longer-term plans for the sector, and would you consider selling other assets in your portfolio?

Yue Seng.

I think I cover when we go through the slides, the key message is that the infrastructure portfolio, it's performing very well, very resilient. $4.6 billion in profit contribution, despite only having 4 months of UKPN and not including the impact of the interest income from the cash we received.

The portfolio is performing very, very well. On the question on whether we'll be selling other assets, I think, as our group, we always will look for the best value for shareholder.

Like UKPN, like UK Rails, if we receive a good offer that delivers shareholder value, we will definitely consider. At this point, we don't have any kind of further update in terms of any divestment.

On the flip side, obviously, as I mentioned, we are looking at whether it's social infrastructure or core infrastructure, we're looking at trying to deploy new capital to these investments, while being, as I mentioned, I feel like I've said it three times already, that we try to be very, very disciplined despite our net cash position. We're definitely looking at new things, but being very, very careful at the same time.

I see that we have two more questions relevant to the proceedings. I'll invite Simon to answer the last two questions for us.

Right. The next question is about write-down.

A write-down of HK$6 billion was recorded in relation to Hui Xian REIT. Could you please explain the rationale for this, please?

The booking of the impairment was mainly because the market value of Hui Xian units has been well below the group's book carrying amount. After our assessment, it was determined that a write-down was necessary, but it was a non-cash item.

Thank you, Mr. Man.

The next question: CKA's interim dividend per share increased by 5.1%, while no special dividend was declared. What are your comments on capital return to shareholders, and any share buyback on the horizon?

The increase in interim dividend per share is consistent with our stated approach to link dividend payout to the overall financial results and outlook. Considering the interim results reported, the board has not decided to make a special dividend on the back of the disposal gain of the two UK joint ventures.

As for buyback of shares, it is one of the ways to deliver long-term value to shareholders, and we will remain opportunistic in our approach.

I believe we've answered most, if not all, of the questions submitted. We thank you for joining our presentation and Q&A session as usual.

We will see you next time. Thank you very much.