China Everbright (165) investor relations material

Executive summary

• Total assets under management reached HK$121.8 billion, with 66 funds and a diversified product portfolio and investor base across primary, secondary, and FoF investments.

• Principal Investments Business delivered a profit of HK$2,205 million, up 22.3% year-over-year, driven by successful exits and revaluation of technology investments.

• The Group faced a net loss attributable to shareholders of HK$2,060 million for the first half of 2026, compared to a profit of HK$399 million in the same period last year, mainly due to a HK$2.17 billion litigation provision and lower fund management income.

• Fund Management Business recorded a loss of HK$1,003 million, impacted by lower valuations and underperformance in certain projects, especially real estate.

Financial highlights

• Total income was HK$1,898 million, down 8.2% year-over-year; investment income fell 26.6% to HK$1,244 million.

• Income from contracts with customers fell 23.8% to HK$138 million, mainly due to lower management fees.

• Share of profits from associates rose to HK$477 million, mainly from Everbright Securities.

• Operating costs decreased by 5.2% year-over-year to HK$348 million.

• Interim dividend declared at HK$0.04 per share (2025: HK$0.05).

Outlook and guidance

• The Group expects macroeconomic policy to remain steady in the second half of 2026, with a focus on stabilizing expectations and promoting domestic demand.

• Management expects China's equity investment market to present structural opportunities, with a focus on AI, hard technology, and new quality productive forces.

• Plans to leverage state-owned enterprise background and cross-border platform to deepen industry empowerment, focus on hard technology, and enhance risk management.

• Strategic emphasis on compliance, long-term value creation, and sustainable returns for shareholders.