(Extracted From Annual Report 2025)

In a year marked by shifting trade dynamics and geopolitical instability, HPH Trust demonstrated resilience while navigating industry challenges. YANTIAN achieved record throughput for the second straight year, buoyed by European, Mediterranean and transshipments demand, while Kwai Tsing Container Terminals remained focused at the crossroads of market rationalisation impacted by volatility, uncertainty and complexity.

Despite mixed volume trends, the Trust overall delivered solid financial results in 2025, and fortified its financial position through disciplined cost control and deleveraging. This is supported by the prudent financial stewardship, the ongoing port infrastructure investments, and the ability to capture business opportunities under the volatile market – laying a stronger foundation for continued value creation in 2026 and beyond.

Resilience Amid Uncertainty

During the year under review, HPH Trust’s total throughput increased by 3% year-on-year to 23.0 million TEU. YANTIAN reaffirmed its role as a pivotal national logistics hub and one of the key preferred ports of call in 2025. During the year under review, YANTIAN handled over 16.1 million TEU, representing an increase of 7% compared with 2024. This performance was underpinned by a 14% increase in exports to Europe and the Mediterranean, along with a 33% growth in transshipment volumes and higher inbound empty cargoes, which offset a 10% decline in exports to the United States, reflecting shifting trade flows and demand patterns due to the prevalent fluctuating US-China tensions throughout 2025.

Meanwhile, Kwai Tsing Container Terminals faced a more challenging operating environment due to the longer than anticipated recovery of Hong Kong’s cargo volumes. Throughput decreased by 6% year-on-year, reflecting competitive dynamics within the GBA under the volatile global trade headwinds and ongoing shifts in shipper preferences. Despite this, Kwai Tsing Container Terminals persevered and upheld its determination to highlight its position as an international transshipment hub and a key catch-up port. Key focus at Kwai Tsing Container Terminals included ongoing strategic investments in smart and green port infrastructure, forging closer collaboration across the GBA, in particular the Shenzhen-Hong Kong Connect port cluster launched in 2024 and pursuing new value-creation opportunities.

Average revenue per TEU at YANTIAN was lower than that in 2024 in view of higher transshipment volume, while Kwai Tsing Container Terminals maintained stable average revenue per TEU. Over the year, revenue and other income totalled HK$11,863.0 million, an increase of 3% from HK$11,567.3 million in 2024.

Profit Growth with Improved Operating Performance

The cost of services rendered in 2025 was HK$3,672.9 million, reflecting a 2% increase compared to HK$3,600.7 million in 2024 due to higher operational demand to support throughput growth. Staff costs at HK$260.6 million, was comparable to 2024. Depreciation and amortisation totalled HK$2,778.0 million in 2025, which was 2% lower than HK$2,824.4 million in 2024.

Other operating income in 2025 was HK$68.5 million, an increase of HK$8.0 million compared to HK$60.5 million in 2024. Other operating expenses totalled HK$486.7 million, which was lower than HK$564.0 million in 2024, mainly due to debts recovered in 2025, and exchange loss and provision for bad debts recognised in 2024.

Total operating profit reached HK$4,733.3 million, a rise of HK$355.2 million or 8% compared to HK$4,378.1 million in 2024. Profit for the year was HK$2,453.8 million, a jump of HK$280.6 million or 13% compared to HK$2,173.2 million in 2024. Profit attributable to unitholders was HK$748.3 million, representing an increase of HK$98.3 million or 15% compared to HK$650.0 million in 2024.

Strong Financial Foundation with Disciplined Strategies

HPH Trust maintained a robust financial position throughout 2025, ending the year with a cash balance of HK$8.8 billion, compared to HK$8.1 billion at the end of 2024.

Debt management remained a key focus, with 52% of the Trust’s debt maintained at fixed interest rates as at 31 December 2025. To further deleverage, HPH Trust continued its debt repayment programme. Total consolidated debt dropped to HK$24.3 billion from HK$25.2 billion at end of 2024. During the year, the Trust issued new guaranteed notes of HK$3.9 billion in February and reduced external borrowings by HK$4.8 billion. Overall, with a focused determination to deleverage since 2017, net attributable debt of HPH Trust continued to fall to HK$17.9 billion by year-end, a 6% decrease from 2024.

Furthermore, finance costs dropped to HK$803.3 million from HK$854.9 million in 2024, largely attributed to lower average Hong Kong Interbank Borrowing Rate in 2025 and external loan repayments which lowered the Trust’s consolidated debt by HK$1.4 billion compared to the beginning of 2024, despite higher interest rate upon refinancing in 2025. However, while easing of interest rate is expected in 2026, HPH Trust will likely incur relatively higher interest cost upon refinancing in 2026 of the remaining maturing debts that were taken out at low interest rates.

HPH Trust recommended a total payout of HK$1,001.8 million for 2025, resulting in a distribution per unit (“DPU”) of 11.5 HK cents. Despite the higher profit, DPU was down by 0.7 HK cent compared to 2024, mainly due to the increase in statutory reserve set aside in 2025 for YANTIAN pursuant to the revised Company Law of the People’s Republic of China. Based on the US$0.22 market price as at 31 December 2025, the distribution yield stands at 7%.

Building on Strategic Strengths

In 2026, with the continuing US-China trade tension and possible changes in shipping schedules by shipping alliances in response to the evolving market situation, the global supply chain and the port industry could expect another year of challenging and uncertain operating and business conditions. However, these conditions also present unique prospects for experienced and major port operators like HPH Trust to build on their strengths to identify and capture business opportunities.

HPH Trust’s resilient technological and financial foundations, together with strategically located terminals supported by well-established intermodal network, allow the Trust to stay focus on the fundamentals it can control – operational efficiency, network connectivity and service reliability – to bring great value to its stakeholders. Guided by stringent capital management and steady investments and upgrades, the Trust is well positioned to adapt and transform uncertainties into opportunities.