CK Asset Holdings Limited

Good afternoon. My name is Gerald Ma. To my right, Mr. Simon Mann and Mr. Yu-Seng Chu, two of my fellow ICCO members. We are your presenters for the CK Asset Holdings Limited 2026 interim results. We will also be taking on the submitted questions after the presentation. So let's get right to it. Income results highlights underlying profits up 5% and deep dividend per share increased to $0.41 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 REIT, change in fair values, investment properties, reduction in value of an associate, and disposal gains of UKPN and UK Rail will give you the underlying, or 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, the profit contribution was only $765 million, more on that later. If you look at all the other divisions, property rental, hotel and service suite operation, property and project management, pop operation, infrastructure and utility asset operations, revenues were all up and proper 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 8% respectively, and other European countries. mainly our operations under ISTA, 453 million, accounting for almost 5%, and the mainland was 1.6%. So very well diversified. If we look at the individual divisions, property sales, again, revenue 21.6 billion, proper 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. It's 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%. And Others is really an agricultural land, mainly a piece of agricultural land in Queensland, Australia, which we sold at a slight negative margin. Major contribution or contributors from the Blue Coast, $332 million. Ford Road Phase 1 gave us $130 million and Chelsea Waterfront just over $100 million. we still have over six 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. Three 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%. Offers, because of the contribution of CKC2, went up 4.8%. And Industrial buildings had a pullback as well, but more than compensated by our contribution from the social infrastructure sector of 6.1% to $712 million. Others are mainly the residential and car parks contribution or revenue or contribution. are major contributors from Cheng Kong Center, $464 million, Hutcherson Logistics Center, $308 million, and the Wampoa 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 are about $1.5 billion. And the bulk of that came from a write-down of Upper West Shanghai, both the office and commercial. So altogether, that's over $900 million. Hotel and service suite operation. We had a solid contribution from this sector in the first half. Room rate had a decent positive movement. The daily hotels went up by about 8% and service suites went up by about 4% in terms of average room rates. Occupancy was very steady, 88% for hotel rooms and 90% for service 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 proper contribution, and margins always healthy 40-plus percent. 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 franchise pubs. And then we have two breweries, one in Scotland, one in England, producing and distributing our beers. And 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 disposals. So the profit contribution went up 14.3% compared to the first half of 2025. So the next few pages out, I will defer to my colleague, Yusheng. Thank you, Gerald.

We have delivered 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 four 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 UKP and also from Evershaw's disposals. 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 Evershaw, 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 resulted in a gain of HK$826 million from the transaction. And for UK Power Networks, as you all know, it's a major transaction for the group. The overall equity value that we disposed at was close to 11 billion pounds, of which 2.1 billion is CKA's share. That results in our profit of disposal from the transaction 8.9, almost 9 billion Hong Kong dollars. There's no really further, any further update on other divestment at this point. We obviously did both of these deals to realize shareholder value from these investments and also bring us proceeds that we're looking to invest, obviously subject to meeting our return requirements.

So Simon will go through the next two pages for us.