Aiden Fung: Good afternoon, ladies and gentlemen, and thank you for joining The Hongkong and Shanghai Hotels 2026 Interim Results Presentation. I'm Aiden Fung, General Manager, Corporate Finance and Investor Relations. The interim results announcement was released earlier today through the Hong Kong Stock Exchange website. Joining me today are Christobelle Liao, Chief Corporate and Governance Officer; Keith Robertson, Chief Financial Officer. With that, let's begin. Our presentation will cover the key messages, financial results, operational highlights and outlook for the remainder of 2026, followed by a Q&A session. I will now hand over to Christobelle.

Yi Ching Liao: Good afternoon, ladies and gentlemen. Welcome to our analyst presentation. We're pleased to announce that the first half of 2026 marked another step forward in our recovery and growth journey. While the broader travel environment stayed uneven through the first half, demand at the top of the market proved resilient and HSH, with its iconic assets, heritage and focus on service excellence, is well placed to benefit from this. Our firm focus on driving top line performance resulted in growth in key markets with strong double-digit RevPAR gains in Greater China and United States. Firmer trading and improved hotel margins carried the group back into the black, delivering a HKD 23 million profit attributable to shareholders in the first half of 2026 compared to a loss of HKD 289 million in the first half of 2025. We're also delivering on our Vision 2035: Perform and Transform strategy. We're seeking to unlock the full potential of our existing assets while shaping our future. We are reinventing our flagship properties with the Board having approved an aggregate investment of over HKD 2 billion for The Peninsula Hong Kong and The Peninsula Tokyo renovations. On the financial highlights, you will see that we delivered strong improvements across all of our key financial indicators. As mentioned earlier, the group returned to profitability with HKD 23 million attributable to shareholders versus a loss of HKD 289 million in 2025. Revenue from operations increased by 8% year-on-year. Operating EBITDA increased by a much larger percentage of 20%, reflecting strong flow-through from revenue growth and disciplined cost management. Cash generation remained healthy with net operating cash flow before working capital movements increasing by 22%. Our balance sheet remains strong with net external debt stable at 22% of total assets and an A credit rating from both JCR and R&I. We also continued to make progress on residential sales at The Peninsula London. As part of our long-term growth strategy, we are undertaking a HKD 2 billion plus strategic investment program focused on 2 of our most important flagship assets, The Peninsula Hong Kong and The Peninsula Tokyo. These projects are designed to enhance guest experiences, modernize key facilities and reinforce the long-term competitiveness of both hotels whilst preserving the heritage and character of what defines The Peninsula brand. We view these investments as an important commitment to future growth, ensuring that our flagship properties continue to deliver exceptional guest experiences and create value for shareholders over the long term. Turning to performance by division. The earnings recovery was broad based. In hotels, we achieved RevPAR growth across all regions, led by Greater China, up 29%, the United States, up 16% and Europe, up 11%. Performance was supported by stronger occupancy, improved average room rates and continued cost discipline across the portfolio. Commercial properties also continued to provide a stable earnings base, supported by robust leasing at The Repulse Bay and improved performance at The Peak Complex. Peak Tram, retail and others continued to grow modestly. The Peak Tram's performance was affected by softer visitor demand due to adverse weather this year. At Peninsula Merchandising, retail network optimization enhanced strategic focus and profitability, helping to strengthen the business and position it for sustainable long-term growth. I'll now hand over to Keith to discuss the financial performance in greater detail.

Keith Robertson: Thank you, Christobelle, and good afternoon, ladies and gentlemen. All figures presented are in Hong Kong dollars, unless otherwise specified. The revenue from operations increased 8% to HKD 3.5 billion. Including Peninsula London residential sales, total revenue reached HKD 3.9 billion. EBITDA increased 20% to HKD 770 million and lower financing costs and improved contributions from JVs and associates further supported the earnings. As a result, profit attributable to shareholders improved to HKD 23 million compared with a loss of HKD 289 million in the prior year period. Underlying loss also narrowed substantially, demonstrating the significant progress made during the first half of the year. Growth was broad based across the group. Hotels delivered the strongest increase in both revenue and EBITDA of 9% and 21%, respectively, reflecting stronger performance across most markets and a continued recovery in international luxury travel. Commercial properties continued to provide a stable earnings foundation, supported by healthy occupancy and leasing activity. Revenue from commercial properties, excluding the sales of The Peninsula London Residences, increased 7% to HKD 486 million. Revenue from The Peak Tram, retail and others divisions increased more modestly by 2%. The overall improvement was partially offset by softer trading at The Peak due to inclement weather and the Peninsula Merchandising in the second quarter. Notably, all divisions delivered positive flow-through to EBITDA. Since first half of 2024, revenue has grown at a compound annual growth rate of 10%. Over the same period, EBITDA has grown at a compound annual growth rate of 40%. EBITDA margins have increased from 13.6% to 21.8%. This really demonstrates our ability to convert revenue growth into meaningful earnings expansion through disciplined cost management and operational efficiencies. The improvement in profitability also translated into stronger cash generation. Net cash generated from operating activities before working capital movements increased 22% to HKD 727 million. This primarily reflects improved EBITDA performance across the group. Our balance sheet remains a key strength and continues to provide the financial flexibility to support both our operations and long-term investment plans. The group's consolidated net debt was at HKD 11.9 billion. Our credit metrics remain healthy with net debt-to-total assets of 22% and HKD 1.9 billion of undrawn committed facilities, providing ample liquidity. We further improved our debt profile, reducing our weighted average gross interest rate from 3.9% to 3.7%, while maintaining an average debt maturity of 1.7 years. Approximately 43% of our borrowings are at fixed rates. During the period, we continued preparations for the refinancing of our HKD 6.5 billion club loan, targeting for completion in the second half of 2026. Finally, we maintained our A credit ratings from JCRA and R&I with 58% of committed facilities classified as green or sustainability linked. We will regularly review the capital structure to ensure there's ample headroom for obligations and our commitments. Next, I'll talk you through the operational highlights. Operational performance improved across all regions. Greater China especially delivered a strong first half performance with RevPAR increasing by 29% year-on-year. The improvement reflected higher occupancy, stronger average rates, increased overseas visitation and disciplined cost control across the region. The Peninsula Hong Kong continued to demonstrate the value of its heritage, location and loyal customer base in a competitive market with The Peninsula Arcade benefiting from recovering luxury footfall and high-quality tenant demand. The Peninsula Shanghai performed strongly, supported by individual travelers and a more international guest mix. Peninsula Beijing benefited from diplomatic delegations, MICE groups and a renewed demand from international travel partners and corporate groups. The United States delivered a strong first half performance with RevPAR increasing by 16%. This improvement was supported by resilient domestic demand, high average rates and healthy group and leisure segments. The Peninsula New York continued to benefit from its recent renovation. Peninsula Beverly Hills achieved strong rooms performance, and The Peninsula Chicago was supported by a solid group base as it marked its 25th anniversary in June 2026, a meaningful milestone for both the hotel and for the city of Chicago. Europe made a stronger contribution to the group's first half performance with RevPAR increasing by 11%. This improvement was supported by The Peninsula London's growing market presence, continued pricing discipline at The Peninsula Paris and encouraging progress at The Peninsula Istanbul, despite geopolitical uncertainty in the wider Middle East region affecting travel sentiment. Asia, excluding Greater China, recorded a modest improvement in the first half with RevPAR increasing by 1%. Performance was supported by stronger occupancy in Bangkok and Manila, while The Peninsula Tokyo maintained its leading market position and commanded stronger rates despite softer overall demand to Japan. The Commercial properties division continued to provide a stable earnings base for the group. The Repulse Bay performed well, underpinned by robust residential occupancy at 97%, a quality tenant base and continued initiatives to enhance its appeal as a distinctive lifestyle destination. Curated cultural and community-led activations supported footfall, tenant engagement and the long-term relevance of the property. The Peak Tower delivered year-on-year growth in the first half, supported by disciplined cost management and commercial initiatives, including a major collaboration with HSBC Life to create an illumination and 3D mapping spectacle for visitors. This helped offset softer visitor traffic and adverse weather during the period, particularly in the month of June. The Peak Tram remains one of Hong Kong's most recognizable and enduring visitor experiences. While performance during the period was affected by softer visitor demand to The Peak due to the weather, we continued to build the appeal of The Peak Tram through targeted partnerships and destination-led activations designed to enhance the visitor experience. Peninsula Merchandising continued to operate in a cautious retail environment. During the period, we rationalized the retail store network in Japan and China, allowing the business to focus more clearly on product elevation, hotel destination retail and opportunities that are more closely aligned with the Peninsula brand experience. We're also seeing encouraging wholesale opportunities for our confectionery items, which offer a more scalable way to extend selected Peninsula products while protecting brand quality and margins. I will now hand you back over to Christobelle to discuss the outlook for 2026.

Yi Ching Liao: We enter the second half of 2026 with improved operating momentum, stronger EBITDA and a materially better earnings position than a year ago. The external environment remains mixed with global travel continuing to grow and luxury hospitality benefiting from a structural shift towards experiences and hyper personalization. However, geopolitical uncertainty, currency volatility, cautious luxury retail spending and higher operating costs continue to require careful management. For hotels, we expect demand to remain positive in the second half, supported by continued international travel recovery, resilient luxury demand and a growing preference for highly personalized experiences. We will remain focused on capturing high-quality demand, strengthening direct and relationship-led business, improving operating efficiency and innovating, particularly with our restaurant offerings, while recognizing that some markets may continue to be affected by geopolitical developments, currency movements and shorter booking windows. For commercial properties, we expect residential leasing to remain resilient. Office leasing in Hong Kong is showing signs of improvement in core locations, but overall market conditions remain competitive. Our focus will, therefore, be on maintaining the quality of our tenant base, enhancing the appeal of our assets and managing occupancy and rental levels with discipline. For Peak Tram, retail and others, we expect second half performance to be supported by disciplined cost management, new commercial partnerships and increased seasonal demand. We will continue to execute the ambitious Vision 2035: Perform and Transform agenda. Across the group, our priorities for the remainder of the year are clear: to drive revenue, to protect profitability through operational discipline, to deepen guest engagement and invest selectively in the assets, people, technology and experiences that will strengthen the Peninsula brand over the long term. We're happy to take any questions that you might have.

Aiden Fung: Thank you, Christobelle. We will now move on to the Q&A session. If you do have any questions, please feel free to type that into the Q&A box. So we have our first question. Under your strategic plan, one of the key pillars is transform. Can you give us an update of that transform progress?

Keith Robertson: I'll take that one. Yes. When it comes to expansion, I think our approach has always been to grow intentionally. Any new opportunity must meet our financial, strategic and our brand criteria. We're prepared to be patient and take time necessary to identify, obviously, the right locations, the right assets and, more importantly, the right partner. I think in parallel, transformation is not only about adding new hotels, it's also about enhancing the existing portfolio through selective investment, elevating the guest experiences, leveraging technology, obviously and creating new partnerships that strengthen our expansion and brand relevance. I think our HKD 2.1 billion investment program at The Peninsula Hong Kong and The Peninsula Tokyo is a clear example of this approach, ensuring our flagship properties remain competitive and relevant for this next-generation of luxury travelers to come.

Aiden Fung: Thank you, Keith. Second question. How would the company control or protect the brand quality under the transform strategy, especially some of them will be asset-right or asset-light?

Yi Ching Liao: Sorry, how will the...

Aiden Fung: The company control or protect the brand quality.

Yi Ching Liao: I think as Keith was saying earlier, really sort of the selection of any new locations or new hotels is really about getting the right location, the right partners, meeting the criteria that we have set internally on sort of the transformation process in identifying the right opportunity. And of course, it goes to -- sort of goes to our negotiations and ensuring that we protect the brand, whether it's sort of -- it's hardware as well as our service level as well.

Aiden Fung: Thank you, Christobelle. Another question on The Peninsula London Residences. Given we have generated HKD 395 million of sales, but the margin appears to be quite low. Can you explain a little bit more on this point?

Keith Robertson: So we have in total 24 London residences, of which there's now 4 remaining for sale. Our approach has always been disciplined. We assess sort of each case on a sale-by-sale basis. And I think you have to take into account the specific unit. I think you have to take into account the proceeds over all 20 units sold to date and obviously, the 4 remaining. Obviously, we want to be competitive. London is a testing market at the moment for residential sales. But we do assess each sale on an asset-by-asset basis. And also in addition to that, when we did build the property, we put a significant amount of capital expenditure into those assets as well. So it is very much on a case-by-case basis as to how we assess the profitability of each sale.

Aiden Fung: Thank you, Keith. Next question. The Repulse Bay give us a good proportion of our fair value in terms of our total portfolio. But in terms of yield, it's relatively not as high as we think. So how does the management think the role of The Repulse Bay in the company's total portfolio?

Keith Robertson: The Repulse Bay is an extremely important asset for Hong Kong and for ourselves in terms of bottom line profitability. Obviously, at a 97% occupancy, it's extremely important from a liquidity and cash flow point of view as well as a bottom line EBITDA point of view. We're constantly enhancing the product, as you've probably seen, if you've been to The Repulse Bay recently. There's a lot of capital expenditure being spent to enhance the look and feel of the product, and we'll continue to do that. It's an extremely important asset for us.

Aiden Fung: Thank you, Keith. Next question. EBITDA margin for the company has been improving. Is there a target EBITDA margin that the company expects to achieve? And what is the expectation of EBITDA margin growth for the next few years?

Keith Robertson: We do expect EBITDA to grow. I think if you look at 2025, I think it was over 40%. It's now currently 20% plus. We do expect it to grow in the future. We have targets under the strategic plan and Vision 2035 to achieve certain levels of EBITDA. I won't disclose what those numbers are, but they will grow substantively, we hope, over the coming years.

Aiden Fung: Thank you, Keith. If you do have any more questions, feel free to e-mail to the company Investor Relations mailbox. Thank you for attending this presentation for today. Thank you.