ANNUAL REPORT 2025 07 LETTER TO UNITHOLDERS remote control quay cranes. In addition, six quay cranes at YANTIAN were heightened to strengthen its capability as a pivotal logistics hub and serve the growing trend in mega vessels deployment. These upgrades positioned HPH Trust to capture new business opportunities and deliver another year of strong operational performance. Following a record-breaking 2024, YANTIAN set a new annual throughput record for the second consecutive year. Throughout 2025, monthly throughput surpassed the corresponding month’s historical record 10 times, with the highest monthly throughput in YANTIAN’s history achieved in August. These results are particularly noteworthy given that the port faced a record 10 typhoons during the year. Vessel and barge handling productivity remained strong, underpinning sustained growth in cargo volumes. Meanwhile, in Hong Kong, Kwai Tsing Container Terminals set a new productivity record in April during a large-scale transshipment operation. The operation deployed 10 quay cranes to handle 12,000 containers across the 399-metre OOCL Scandinavia and the 366-metre OOCL Egypt within 70 hours. This achievement highlighted Hong Kong’s competitive advantage as an international transshipment hub and a key catch-up port, enabling vessels to maintain schedule reliability at subsequent ports. Regarding capacity enhancement, construction of East Port Phase I at YANTIAN continued to progress, with three fully automated berths designed with 3 million TEU annual handling capacity to handle vessels exceeding 200,000 tons in displacement – equivalent to a capacity of more than 24,000 TEU, and scalable to 32,000 TEU. PIONEERING AI AND SMART OPERATIONS HPH Trust continued to invest in smart port operations in 2025, with the adoption of advanced automation, 5G-enabled technology and AI solutions. In Hong Kong, following a series of proof-of-concept trials and real-world safety testing of eco-friendly electric-powered autonomous trucks (“ATs”), HIT committed to integrating ATs into operations in 2026 by ordering six trucks and commencing civil work upgrades in 2025. These trucks are equipped with built-in AI, multidimensional sensors, high-definition cameras and GPS guidance. Moreover, they can operate alongside conventional traffic, running on the same roads as other vehicles. This mixed-mode operation will enhance efficiency and safety while bringing decarbonisation to the port. In addition, both Kwai Tsing Container Terminals and YANTIAN leveraged AI technology to enhance gatehouse efficiency and safety management. HIT improved drivers’ and workers’ experiences at gates by enabling contactless entry and exit flows using 5G and optical character recognition, eliminating manual processes and cardbased systems, while YANTIAN applied AI to automate container seal detection in gate inspection procedures. For yard and safety management, HIT introduced drones with AI capability to conduct inspections in dangerous cargo zones, while YANTIAN is progressing the development of real-time AI-based compliance monitoring and tracking across the container yard which is expected to be implemented in 2026. Together, these advancements demonstrate HPH Trust’s technological leadership and commitment to innovation, positioning its terminals at the forefront of smart, safe and efficient port operations. DRIVING THE LOW-CARBON TRANSITION HPH Trust continued to advance its decarbonisation journey in 2025. With the dedication and support of its colleagues, the Trust achieved a 29% reduction in carbon emissions intensity compared to 2021, close to its target of a 30% reduction by 2030 set in 2023. Today, the Trust’s terminals collectively operate more than 1,000 units of equipment powered by electricity or LNG. At Kwai Tsing Container Terminals, sustainability initiatives in recent years have included converting hybrid yard cranes to electric models, installing solar photovoltaic systems and transitioning from fossil‑fuel‑powered vehicles to electric fleets. In 2025, HIT further upgraded 13 yard cranes from hybrid to electric, launched a sustainability awareness workshop engaging over 500 participants, including around 100 key vendors to align suppliers with its environmental commitments. It also became a founding sponsor of The Mariners, a club facility launched by the Sailors Home and Mission to Seafarers, reaffirming its support for the maritime community and seafarer services. YANTIAN also made parallel strides in decarbonisation. Its electric truck fleet expanded from 83 vehicles in 2024 to 256 vehicles in 2025. Shore power infrastructure now covers all berths, with total capacity increasing from 24 MVA to 29 MVA. During the year, YANTIAN set a new annual record, supplying over 29 million kWh of shore power across more than 1,200 vessel connections – representing year-on-year increases of 17% and 18%, respectively. LNG bunkering volume also rose by more than 78% compared with 2024. These achievements underscore growing adoption of cleaner, shore‑based energy among visiting vessels and reaffirm HPH Trust’s commitment to leading the industry’s low‑carbon transition and supporting our customers’ sustainability goals. TARGETING SUSTAINABLE GROWTH The global market outlook remains complex and volatile, with ongoing uncertainties in trade flows, tariff negotiations and consumer sentiment. Financially, interest expenses are expected to increase, as the last of maturing debts drawn at the low end of interest rate cycles five years ago will be refinanced in 2026 and additional cashflow is expected to be directed towards interest servicing. Looking ahead, HPH Trust remains focused on maintaining stability, enhancing operational efficiency and driving sustainable growth in a dynamic environment. Continued investments in strategic infrastructure and innovation have well positioned the Trust to adapt effectively to changing market conditions, while our commitment to excellence and collaboration underpins long‑term resilience and stakeholder confidence. The Trust will continue to monitor overall macroeconomic developments closely and remain disciplined in execution, innovative in operations and proactive in partnership. While trade patterns may remain erratic in the near term, our core strengths will support sustained value creation and strengthen HPH Trust’s position as a trusted and leading gateway for global trade. Mr. LAI Kai Ming, Dominic Chairman
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