CLP (2) investor relations material

Executive summary

• Operating earnings before fair value movements rose 9.7% year-over-year to HK$5,733 million, with total earnings up 6.6% to HK$5,997 million, driven by regulated Hong Kong operations, improved regional performance, and the Jhajjar coal plant sale.

• Revenue was stable at HK$42,856 million, with Hong Kong remaining the largest earnings contributor due to robust electricity demand and infrastructure investment.

• Operational excellence, digital transformation, and cost optimisation initiatives delivered recurring benefits and advanced decarbonisation.

• Interim dividend declared at HK$1.26 per share, unchanged from last year.

Financial highlights

• EBITDAF increased 9% year-over-year to HK$13,575 million.

• Free cash flow reached HK$7,806 million, supported by strong operational inflows and dividends from associates.

• Net debt rose to HK$62.2 billion, with a net debt-to-total capital ratio of 34%.

• Dividend payments totaled HK$4.9 billion in 1H2026.

• Capital investments totaled HK$7,319 million, with a focus on Hong Kong transmission and distribution.

Outlook and guidance

• Hong Kong's HK$52.9 billion Development Plan remains on track, focusing on infrastructure for Northern Metropolis, data centre expansion, and transport electrification.

• Chinese Mainland to focus on grid-parity renewables, operational efficiency, and self-funded expansion via Panda bonds.

• Australia expects softer wholesale prices and increased competition, with transformation programs targeting cost savings and flexible capacity.

• India aims for non-carbon growth, expanding transmission and smart metering, with major wind and solar projects underway.

• Global fuel price volatility and regulatory changes remain key uncertainties.