At the annual general meeting held in Hong Kong on May 21, CKH HOLDINGS (00001) Chairman Victor Li addressed shareholders on recent transactions, financial prudence, business strategy, and the dividend policy. In response to investor inquiries, Li emphasized that while the group has successfully realized cash through several transactions executed at "the right price," it must remain highly cautious in a complex and unpredictable international environment, advocating a strategy of "waiting for the right moment and making precise decisions." He summarized the group's current approach with the statement: "The greater the storm, the firmer we must stand. In a nutshell, it's 'cash is king.'"

Li pointed out that CKH HOLDINGS has consistently maintained robust financial health, with its net debt ratio reduced to a low of 13.9%. He expects this ratio to decline further upon completion of several transactions, thereby enhancing the group's ability to withstand various challenges and seize high-quality new opportunities decisively. He stressed that, as a listed company, the group's primary responsibility is to maximize returns for shareholders. Therefore, when seeking new projects, the foremost considerations are project quality, stability, return rate, and sound financial planning. "As long as a project possesses good quality and attractive returns, regardless of location, the group will seriously consider it," he stated.

Regarding the special dividend arrangement following the sale of the UK telecommunications business Vodafone Three, Li responded that further arrangements would be made only after the group receives the transaction proceeds. "Once the transaction funds are in hand, the board will discuss the dividend arrangement as soon as possible," he said. He also noted that even without this transaction, the group has already announced an increase in dividends this year. Li emphasized that the group's goal is to create long-term value and maintain a predictable and stable dividend policy based on generating underlying earnings.

When asked about potential further sales in the telecommunications sector post the Vodafone Three deal, CKH HOLDINGS Executive Director and Co-Managing Director, Frank Sixt, clarified that the board currently has not made any decisions regarding transactions for the global telecommunications business. He underscored the group's steady strategy in this sector, with no hasty plans for asset disposals.

Addressing the recent takeover of the group's Panama port operations by the Panamanian government, Sixt stated that the group, alongside its legal advisors, is thoroughly examining the matter. Legal proceedings will be initiated locally in Panama, and the group will continue to explore all feasible avenues to protect its legitimate rights and interests. He added that the group would disclose relevant developments at an appropriate time.

Concerning geopolitical risks and the market environment of rising oil prices due to Middle East conflicts, Sixt pointed out that the group's highly diversified geographical business footprint provides flexibility in risk management. While some operations are affected, overall performance remains robust. Notably, the group's energy business, Cenovus, reported a significant increase in first-quarter net profit to C$1.57 billion from C$859 million in the same period last year, with dividends also rising by 10%, contributing substantially to the group's overall returns. Li added that Cenovus currently produces close to 1 million barrels of oil per day, highlighting the important role of the energy business within the group's overall strategy.

During the Q&A session, shareholders raised concerns about the increase in directors' fees and the reappointment of PwC as the auditor. Li explained that as the company had not adjusted directors' fees for over a decade and the group's operations have become more complex, a moderate adjustment was necessary to reflect the directors' responsibility and contribution to the group's operations and strategic decisions. Sixt further clarified that the auditors handling the accounts of China Evergrande were not involved in auditing CKH HOLDINGS' accounts. A PwC partner previously sanctioned by the Accounting and Financial Reporting Council was only responsible for quality review work for CKH from 2022 to 2024. After review, the group believes PwC has demonstrated proactive performance, extensive experience, and professional capability in auditing across diverse regions and businesses, making it competent for the group's complex audit needs. Following a comprehensive assessment by the audit committee and the company, the decision was made to reappoint PwC as the group's auditor.

The meeting also covered the group's future investment strategy and cash management policies. Li stated that in the face of global economic and geopolitical uncertainties, CKH HOLDINGS will continue to adhere to the principle of "cash is king," maintaining ample cash flow and a low debt level to act decisively when high-quality investment opportunities arise in the market. When selecting new projects, the group will focus on examining project quality, stability, and expected returns to ensure investment decisions are prudent and precise, avoiding reckless expansion.

Sixt emphasized that the group's highly diversified operations in energy, infrastructure, telecommunications, and other sectors, combined with flexible risk management and a diversified portfolio, enable it to maintain overall business stability even amid global market volatility. Particularly in the energy sector, Cenovus' outstanding performance, with significantly increased profits and dividends, provides solid support for the group's overall shareholder returns.

Regarding financial prudence and dividend policy, Li further noted that CKH HOLDINGS will continue to maintain a predictable and stable dividend policy based on generating underlying earnings, ensuring continuity and sustainability in shareholder returns. Simultaneously, he stated the group would flexibly respond to market changes, seize market opportunities under the premise of ensuring a robust financial structure, and achieve long-term value growth.

In his concluding remarks, Li emphasized that in the current complex and volatile international environment, CKH HOLDINGS will persist with a steady and prudent operational philosophy, with "cash is king" as the core strategy, while maintaining strategic flexibility and investment acumen to create long-term, stable returns for shareholders. "The greater the storm the group faces, the firmer we must stand. Only by maintaining financial robustness can we act decisively at the right moment to seize high-quality investment opportunities," he said.

Sixt added that the group will closely monitor global political and economic developments and industry trends, continuously optimizing its business structure and risk management system to ensure profitability and stable cash flow across different market environments. The management committed to transparent and timely disclosure of significant matters and progress in investment decisions, ensuring investors are fully informed about the group's operational strategies and development direction.