Thank you very much for attending the live webcast of CK Hutchison 2021 interim results presentation. Today our speakers are Mr. Victor Li, our Chairman and Group Co-Managing Director, Mr. Canning Fok, Group Co-Managing Director, Mr. Frank Sixt, Group Finance Director and Deputy Managing Director. Mr. Dominic Lai, Deputy Managing Director and Group Managing Director of A.S. Watson Group, and Malina Ngai, CEO of Asia & Europe of A.S. Watson and Group COO of A.S. Watson Group. During the presentation, please feel free to raise your question in the chat box, which is at the lower right-hand side of your screen. The Q&A session will follow the presentation. Before I hand over to Canning, please also pay attention to our disclaimer, which you can find on page two of the presentation. We can start now, Canning. Okay. Thank you, Carl. Good afternoon, everybody, and good morning to those in Europe, and good morning to Frank, he is in Europe. I think the first half of the year for CK Hutchison is quite pleasing. If you turn to page four, revenue went up by 12% and at HKD 212.4 billion, EBITDA went up by 18%, it's HKD 55.6 billion, and EBIT went up by 23%, HKD 32.8 billion. Of course, it's about time we got some help from foreign exchange. If you take out the foreign exchange, revenue went up by 4%, EBITDA by 10%, and EBIT by 15%. Net earning for the six months period is HKD 18.4 billion, recorded a 40% increase. If you just take away the foreign exchange, then it's 32% increase. Of course, earning per share, HKD 4.75, a 41% increase. I'm very pleased to say that the board resolved to pay an increased dividend, which is HKD 0.80 per share. Represent a 30% increase from same period last year. Of course, one of the more pleasing result is that in the first half, we were able to complete a few of our tower transactions, we received the cash. It's in our pocket. Our debt ratio now is 19.9, which is lowest for a long time. We are very happy that it go down into teens figure. If you go to page five, we talk about the EBITDA. EBITDA went up by 18% at HKD 55.6 billion. If you talk about local currency, it's 10% in take away the foreign exchange gain. If you look at the figure, the circles in the far left. You saw that the circle have two rings. Actually the outer ring is where does the profit come from because we have the tower transactions. 70% come from U.K. and Europe. If you take away this one off and it is 59% from Europe and 6% from mainland China and 5% from Hong Kong, China, 20% from Asia, Australia and Canada. Of course, because we classify Husky, our oil companies, Cenovus now changed as a head office. It's no longer one of our core business. It's classified in the head office. Head office become bigger at 8%. You go to the right-hand side, in the middle of the page. More to the right-hand side, you saw the waterfall chart. Go from last year to this year to HKD 46.9 billion to HKD 55.5 billion. How you make up of? Last year we have a one-off from the merger of TPG. If you take that away, it become HKD 41 billion, the blue color. If you look at that, the port went up by HKD 1.1 billion. Actually, in the port side, which I will go through that in detail, but it went up everywhere. Port has a excellent time in the first half. Retail went up by HKD 1.6 billion. Actually, it also went up everywhere except that PARKnSHOP in normal time doesn't do as good as COVID time because people go out more often than stay home. Otherwise, it went up everywhere against last year. Infrastructure EBITDA actually went down by HKD 566 million. The reason being that a lot of the projects are under reset. It's in the new reset. However, they just announced yesterday, actually, their net profit after tax actually went up in the first six months. Okay. On the Three Group. Actually, Three Group has a very, I won't say stable, but have a everywhere is more or less the same as last year in terms of business with Italy fell behind because this year, it's the first half that we witnessed a change in one of our MVNO, that is, Iliad. Because they have built their network, then they start using the network. We saw that the income come less. I will go into more detail in the Telecom sections. Also on HAT, it's more or less the same with Indonesia. It's under quite severe COVID-19 situation, so that there is a shortfall in revenue. However, even in Vietnam and Sri Lanka, these two small operations are doing quite well. They all improved and show positive figures. That is a very small figure. Of course, the finance and investment, the major increase represent the return from a major loss from Husky last year into a profit. No loss in the Cenovus situation, with some profit. This is why it showed almost HKD 2.5 billion positive. The foreign exchange, as I said, comprised of HKD 3.9 billion. This year, we got a strengthening of our European currencies. Everywhere the currency went up against U.S. dollar. It's quite happy. Of course, that gave up to the HKD 49 billion. This year we recorded a major gain from the finalization of the tower transaction in Italy. What we did is that we took a profit, and then we actually did not recognize all the profit. We actually make provisions against the goodwill of Italy so that we only recognize HKD 6.2 billion finally. That is how the EBITDA was therefore charged. Before I go further, we have to go for the page six on the operating free cash flow. I will ask Frank to go through the detail. At the operating level, cash flow management continued to be pretty solid during the year. Operating free cash flow, which is here presented as the EBITDA of our subsidiaries. The dividends received from our associates, less CapEx, less investments at HKD 17.7 billion is lower than in 2020's first half. That is entirely due to increases in spending. Bear in mind that these numbers are presented on underlying operations, they're not taking account of the cash inflows from, for example, a towers transaction or anything else that's a one-off. The spending increase really has been driven by the sensible need to deploy capital. We'll go to that in a little bit more detail in the subsequent slides. I don't take anything adverse from that. Indeed, I look at it the other way, which is that you have healthy increases in the EBITDA from subsidiaries as well as in the dividends that we've received from our associates. The circles on the right just split that out by contribution by division. Pretty self-explanatory, right? The retail contribution, if you look at it year-on-year, if you look at last year's slide presentation, obviously is significantly up in free cash flow terms as well. That is, of course, because the early stages of the pandemic hit the mainland very hard with very major part of retail's businesses in the first half last year. They've had some steady recovery as we've gone through the first half of this year. Moving to the next slide. This just splits it by division in exactly the same way. You have on the far right for the totals, you have exactly the same numbers as you saw on the previous page. The important ones being the HKD 32,890 of really cash available from ordinary operations. The HKD 15.2 of spending and another HKD 4.7 of discretionary spending, but on licenses. You go through it's pretty obvious just from the pictures, that everybody is living well within their means. The real investment increases that are coming from the Telecoms businesses. HAT has been a bit of a consumer this year as it has rolled out network and so on in pretty difficult operating environments in Indonesia. All in all, everybody's living within their means. Actually, if you parse the financial statements, you'll find that everybody is pretty well living within their CapEx envelope. Sorry, their depreciation envelope as well, with the exception of CK Hutchison Group Telecom and Hutchison Asia Telecom, where we are investing above our current depreciation rates. Finally, moving from operating cash flow to real free cash flow. In doing that, you have to take away interest paid. You have to take away working capital. You have to take away things that we decided to do. We decided to voluntarily prepay some license fees that would've been due in subsequent years in order to save effectively interest costs associated with those balances. We bought some new Telecoms licenses. That gets you down to an underlying free cash flow of HKD 1.4 billion. Of course, you add on to that the cash from the tower proceeds, which is HKD 38.425 billion. The cash generation in the first half, obviously very healthy. What's quite interesting, if you look at the waterfall on the right-hand side, you quickly find that working capital management was very good. Again, I'd single out the Retail Group here for having done a superb job in the first half of continuing to manage working capital tightly. That's not easy as businesses are opening and closing and partially opening and partially closing all around the world, which Dominic will no doubt be talking a lot more about. Working capital changes year-on-year have actually been positive. All of the stuff which is driving the negative bars is by and large discretionary stuff. It's the prepayment that we made on the license. It's how much more CapEx we decided to invest, and we'll get to that, but that's primarily in the Telecoms businesses. Indeed, how much we decided to buy in terms of new licenses supporting our Telecoms businesses. Overall, I think, a very healthy cash management profile, which leads me to the next page. That is reflected in a pretty healthy debt maturity profile. HKD 190 billion of cash and cash equivalents against a total outstanding principal debt of HKD 351.1 billion. That, as Canning mentioned, takes our net debt to net total capital ratio down to 19.9%, which is certainly a recent memory low and a very good thing, I think, in still, to some extent, uncertain times. A good, I think, maturity profile. We have an average maturity of 4.9 years. Our cost of debt has continued to decline, so it averages at 1.6%. Our return on treasury assets is low because most of those have been kept in liquid deposits. 40 basis points return. There is a spread between our cost of debt and our liquidity, but it's still a very manageable number overall. The only other thing that I would say is that we have changed the mix of our debt after swaps, so that we are much less in floating rates and much more in fixed rates for that 4.9 years duration than we were at the end of last year. I think I'll stop there, and Canning, send it back to you to talk about ports. Well, as I said before, ports goes up everywhere. If you look at the TEUs, it went up by 11%. You look at the EBITDA, it went up by 26%. Even if you take away the foreign currency gain, it went up by 21%. It's quite a happy first half following the good business from the last half in the second half of 2020. If you look at the waterfall chart on the right-hand column, top column, you see that it go from last year's EBITDA to this year. You can see that everywhere is blue color except the mainland one. Why it is red color? Because we actually have less ownership in Shanghai port. We have 20% less, we have less earning when you own less. We sold 20% last year. Another worth mentioning is Asia. Australia is really good improvement. Why do I mention that? This year we lost the Damietta Port, so with one part less, they are still doing good, so we are quite happy with that. The last thing I would like to mention in the port business is that we make a partnership with COSCO because they are one of our biggest customer, and then we invested in the company. That give us very, very good return. That is reflected in the HKD 412 million in the corporate cost and other. It's a good first half. I will turn over the page to page 11, and then I will ask Dominic. He is our head of Dominic Lai, our head office director, but he's in charge of the retail. I would like him to report. This is all his work. Okay. Well, thank you, Canning. Retail. The retail division has staged a robust recovery year-on-year and reported a solid first half, with active management of the pandemic impact continuing. Total sales for first half was HKD 82.6 billion, a 12% increase in reported currency or 5% in local currency. The core health and beauty business reported an 8% sales increase in local currency, with strong growth of 17% also in local currency in the second quarter. With over 16,200 stores, the division remains the world's largest international health and beauty retailer, operating in 27 markets with a strong loyalty member base reaching 140 million, and member sales participation high at 66%. That means 66% of total sales came from loyalty members, indicating the strong stickiness of our loyalty programs. Exclusive sales, which include our own brands and exclusive brands, the sales participation increased 2 percentage point to reach 36%, creating strong differentiation for the retail business. On our O+O business model, i.e. offline plus online, it is working out nicely to help build market position and brand uniqueness. For your information, our CRM data shows that customers who shop with us both offline and online buys 3 times more than the customers who shop with us only in our physical stores. These observations form the business case for our O+O strategy. On store numbers in the middle chart, we continue to open new stores during the pandemic, and 317 net new stores have been added year on year, bringing the total store numbers to 16,206 as at end of June. Around 80% of new stores opened are in China and Asia. Average payback period for the new health and beauty stores, which represent the great majority, remains healthy at 12 months. We have a short payback. The split of these 16,000 odd stores is 50/50 between Europe and Asia. On EBITDA is reported at HKD 6.725 billion, represent an increase of 45% in reported currency, or 35% increase in local currencies. The EBITDA split is 54% in Europe and 46% in Asia. The EBITDA growth chart on the top right shows a very healthy EBITDA growth of 35% from HKD 4.63 billion in the first half of last year to HKD 6.73 billion this year. This number also includes a favorable foreign exchange translation gain of HKD 481 million. If you look across the bar chart, all divisions shows positive growth except other retail. Like what Canning said, predominantly representing the PARKnSHOP supermarket business in Hong Kong, which had an exceptionally strong first half last year due to panic buying, which does not recur this year. For the core health and beauty business, which account for 94% of the total division's EBITDA, the year-on-year growth rate is a strong 52% in local currencies. Let me go through it one by one. First, for Health and Beauty China, the first half sales achieved a growth of 21% versus China's retail market sales growth of 11%. We are doing better than the market. In the meantime, online sales continue its growth momentum at 80% versus the market growth of 23%. This increase in sales has resulted in year-on-year EBITDA increase as shown of HKD 494 million, a strong 53% growth in local currency. Next, for Health and Beauty Asia. Despite the resurgence of the pandemic in recent months in some countries, this division also recorded an EBITDA increase of HKD 117 million, a growth of 19% in local currencies, with Malaysia, Thailand and the Philippines as our key contributors amid movement restrictions, demonstrating resilience of the Asia businesses. For Health and Beauty Western Europe, this division's major operations are considered essential retail by the government, which allows stores to remain open during the lockdown periods. This has enabled the Western Europe division to deliver a very strong EBITDA increase of EUR 1.04 billion, representing a very high growth rate of 82% in local currency, primarily from the Benelux countries and Germany. For Health and Beauty Eastern Europe, it also reported a EUR 276 million EBITDA increase, reporting a growth of 39%. The predominant contributor to this EBITDA increase is Rossmann Poland, which also enjoyed the essential retail status and have its stores remain open during lockdowns. With all these good contributing results, the total Health and Beauty business reported a strong EBITDA increase of almost HKD 2 billion if you add all the increases together, representing a year-on-year growth of 52% in local currencies, as I mentioned earlier. We turn to the EBITDA margin chart on the bottom right. With the increase in EBITDA, the EBITDA margins also increased correspondingly. For Health and Beauty China, the EBITDA margin increased 2 percentage points year-on-year, from 11% last year to this year's 13%. For Asia, the EBITDA margin also increased from 7% in the first half last year to 8% this year. For Western Europe, from 4% to 7%, so it's quite a respectable increase. For Eastern Europe, from 10% to 12%. As a result, the overall EBITDA margin for the core Health and Beauty business has increased 2 percentage points year-on-year from 7% last year to 9% this year. In summary, the robust year-on-year recovery of the retail division under the pandemic is attributed to the successful strategic decision to drive further digital transformation in accelerating the integration of the physical store portfolio and online channels to offer a seamless O+O experience to the customers, resulting in good increases in sales and margin. This crucial O+O strategy is working out well and will continue. From here, I will pass it back to Frank to talk about infrastructure. Good. Thanks, Dominic. I'm not going to dwell too much on slide 12. Obviously, CKA announced their results yesterday, and will have done a very good job of explaining the puts and the takes. Obviously, the major sort of anomaly in the first half was the deferred tax charges and deferred tax credits, right? Which related to changes in U.K. tax rates, which will be introduced in 2022, I believe, and involve a substantial increase. Nevertheless, even including that, showed a 5% increase, right, in earnings, which is very healthy. Obviously, if you exclude the effect of deferred tax charges and credits, a double digit, right, level increase in earnings. That's quite satisfying when you consider that the company is already taking in the impact of resets that took place in 2019 sorry, in 2020, and in the second quarter of this year, on I think it's about five of the assets. The chart on the lower right-hand side shows you where reset effects, right, will come into play, right? Some of those have already been absorbed, obviously, in the results announced for the first half. I think, overall, very steady as she goes, and very happy results from CK Infrastructure. Of course, a debt ratio and a credit rating that are completely supportive of CKHH's own, right, debt ratios and credit ratings. I'll stop there and pass it on to Canning to talk about Telecoms. Okay. On the Telecom side, it has a solid first half, revenue went up by 7%. Although the subscriber, actually active subscriber went down by 2% to 38 million, the ARPU is doing quite well. Not only EBITDA went up by 1%, because data usage is quite a lot, + 30%, that give the solid foundation to the business. The EBITDA for the year, for the first half is HKD 14.7 billion. If you look where does it come from? That I would like to refer to the left-hand side and the right-hand side of the page. You got the 2020 EBITDA, you take off in order to make the two half year comparable, you take off the tower contributions. No. The tower expenses. To make the 2020 figure comparable to the 2021 figures. You saw that U.K. has a small increase, and then Sweden has a small increase, and then Denmark, Austria, and Ireland, they all have a small decrease. I would say that is all due to margin. I expand a little bit higher here and there, and you will see in the next page. The thing that it shows a bigger figure is Italy. If you look at Italy for the last few years, the strategy was to take the income from the wholesale business, especially with Iliad, and then let them take away our low ARPU customers, because we earn more money from the wholesale business than keeping those subscribers. As a result, we saw that the result in the last few years was very solid. Our strategy worked very well. The gross margin for all those years, while the market has been so competitive, we have been able to stable and increase a little bit. On this year, it is the first year we saw that now Iliad has built their network and then they channeled a portion of the business back to the network, especially in the cities. As we saw that the first time that we saw that the wholesale income from Iliad has reduced. However, we are quite ready because our second brand has actually taken off from second half of last year to this year. We have quite a substantial base now, and so that actually if you've seen in our second quarter result, our base performance is actually quite pleasing. Not only is stable, we increase a little bit. The first half results shows the financial effects of less wholesale income and then to a certain extent, offset that by our cost saving and also we won some settlement with another competitor our EBITDA dropped by HKD 564 million. Of course, if you go to the far right, then we have a foreign exchange gain in this division because the European currency has performed quite flatly. Then the EBITDA percentage change that shows the picture and the margin is quite healthy. Italy is still 45%, with Sweden and Denmark at 32% and Austria 43%. You can move to page 14. This page 14 shows the detailed calculation that this is simple, just a representative of what I just described. With this, I turn to page 15. Frank, and you. Yeah. Just an update on the tower sales. Just to recap, in 2020, we completed the sales in Austria, Denmark, and Ireland, which brought in proceeds of €2.2 billion, and a gains on the disposals of €1.7 billion. In the first half of this year, we completed Sweden, and we completed Italy for total proceeds of €4.1 billion and total gains, included in the numbers that we're looking at today, of €2.6 billion. That leaves the U.K. to be done. It is in the CMA regulatory process. As everybody knows, it has gone into phase II. For those who don't know the competition process in the U.K., it's really very different from the competition process in Europe. Put in a nutshell, in Europe, if you go into phase II, you essentially have to convince the same team who put you into phase II that they were wrong in their conclusions on phase I. You're always dealing with the same team, and you're dealing with the same decision makers. In the U.K., in phase II, a panel is empaneled of independent experts that are brought in. Both the CMA and Cellnex will make their case to that panel. We think that in that context, the position that Cellnex is in is very solid. We remain confident that approval will be forthcoming. I suppose the only thing that it does is leave some question as to whether approval comes before the end of this year or whether it slips into the first half of next year. Given the strictures on the regulatory process in the U.K., it can't go past the first half of next year. Of course, given all of the ructions and so on that the pandemic has caused, it may be a little slower than it might otherwise be. We will see what the timing is. I continue to believe that the outcome will be good. Under our contracts, assuming that the regulatory approvals are obtained, which they were in all the other countries where we needed to obtain them, including Italy, we would be getting proceeds of EUR 3.7 billion, and looking at a gain of EUR 2.6 billion to go into the numbers either for the second half or for the first half of 2022. One of the things that you start to see in the Telecoms reported figures is that we are normalizing when we do period comparisons. When you compare to the prior year's quarter for the impact right on EBITDA of the tower sales because obviously, they are paying money to Cellnex, and it is important to understand how much that is. Of course, they were not paying money to Cellnex in the first half of last year, and that will continue to be the case as we look forward. We look at the, quote, "normalized numbers" to get fair period-on-period comparisons for the Telecom operations. The impact in the first half of 2021 was really very small. It was about EUR 50 million across all of the countries that had been completed in December 2020. Of course, Italy completed on the 30th of June, so had no impact but will have in the second half. No change at all to the original announcement in terms of the use of proceeds. Obviously, we have applied some of these funds already to reduce gross debt and net debt. With that, I would turn it back to Canning to talk about HAT. HAT has a difficult environment to work on. Basically, HAT is in Indonesia, Sri Lanka, and Vietnam. As I think most of you must well know, in the first half of 2021, these three places are really hit quite hard by COVID-19. We have about 60.4 million active mobile subscribers. In the first half, we show a reduction in EBITDA from HKD 872 million to HKD 800 million. Basically, if you look at Vietnam and then Sri Lanka, actually survives quite well. They actually do a little bit better than last year's similar period. Indonesia, actually, the performance is quite well. In spite of the fact that revenue and margin went down, actually, we did very good controlling cost, and then we make it back by tighter operations and all those, so that it shows HKD 100 million difference between this year and last year's similar period. I would say that is a good result in a difficult situation. I think everybody want to know about our discussions with Indosat on the merging. I must say that we have a deadline, yeah, in middle of August. I am cautiously optimistic. I hope that we can have an announcement by that time. Okay. Now go to sustainability. Frank, can you do this? Yeah. This is an area which has been, over the last several years, gaining focus and prominence across the group. I must say, very satisfactorily. If you go to page 18. We released our 2020 sustainability report. I really do hope that you have had the chance to read it and that you will read it, because I think it's very revealing about just how much is going on on all fronts across all of the divisions and geographies in this group in various coherent directions in terms of sustainability. Just to put a rough number on that, if you exclude, because it's very difficult to allocate what we're spending in 5G development. We've spent about $1.8 billion in the last three years across the board on sustainability initiatives around the group. That's a number that we're going to be tracking going forward because it is very important. If you look at what ports are doing, they're deploying smart port technology, all sorts of electrification, which is reducing their carbon footprint quite rapidly and quite successfully. Self-driving trucks are now part of the state-of-the-art new port development approach. Trialing hydrogen-powered port equipment. Indeed, in the U.K., where the port has been designated as a freeport, it's also part of the government's Green Agenda, and with a view to becoming a, in effect, showcase for hydrogen-powered ports operations, which would be extremely environmentally friendly and might set a standard for port operations going forward. In retail, you see just a plethora of efforts and commitments in the areas of, in particular, the circular economy. Getting stuff on the shelves that doesn't just consume resources, but that consumes resources that can be brought back into the world's resource base, which is a goal and objective that is probably right up there with decarbonization and the initiatives related to climate change that you're seeing across the board. Infrastructure. The CKI group is really leading edge in terms of what they're doing. Particularly in terms of the hydrogen economy. Trailing delivery through natural gas pipelines of hydrogen offtakes and trialing hydrogen-based energies in homes to substitute for natural gas. Trailing, as I understand it, a hydrogen powered train. About 50% of the trains in the U.K. are electrified, and so there's scope potentially for hydrogen powered rail. It's really quite remarkable. In terms of the EV universe, planning ahead in the electricity distribution businesses for when and where it will be necessary to provide additional grid capacity and to support charging points and so on. Really across the board, what CKI is doing in sustainability is, I think when you read the report you'll find very, very impressive. Of course, in Telecoms, we are part of the CDP. We publish every year. We have targets in terms of our own emissions and decarbonization targets. We're also involved in a lot of projects looking at how 5G technology can support smart technologies, smart city technologies, and so on, that will have meaningful environmental impacts. For the group as a whole, we've adopted for 2021 and 2022, of course, we've endorsed the UN Sustainable Development Goals, but we've also adopted out of those, four key actions for this year. 1 is to continue to up our game on climate change, so make progress in terms of understanding our Scope 3 emissions, as they're called, but also make progress in terms of target setting division by division and over time. The second is seizing the opportunity of sustainability. That's really what I've been talking about in terms of investing in new technology that either works towards decarbonization or new technology that supports the circular economy. Creating great places to work, that's very important. The work environment has been really highlighted during the pandemic, and how you deal with your people is the starting point, I think, of what kind of company you are. One of the things that's happening there is that the workplace metrics are starting to be woven into short-term and long-term incentive calculation metrics for managers. We're really taking seriously the need to make sure we're achieving the right things in terms of diversity and inclusion, and the way that we handle our workplaces. Lastly, of course, as we did from the beginning of the pandemic, and we will continue to do, just a whole plethora of things to support employees, support communities, support stakeholders through the pandemic. That's happening in all of our divisions. It will continue in the rest of 2021 and into 2022. As I said, I'd encourage you to read our sustainability report and to keep an eye on this area, because I think it's an area that is necessary, both from a capital markets point of view and a customer facing point of view. It is also an area that is rich in opportunity potentially for our group for the future across all of our lines of business. I'll stop there, and I think that takes us to Q&A. Thank you very much. We will now begin the Q&A session. Once again, please feel free to raise your question in the chat box, which is at the lower right-hand side of your screen. The first question is: Is there more specific information about the breakdown of proceeds from tower sales among share buyback, debt reduction, others, if any? We've started the share buyback plan, and we've started paying down the debt. Remember, the biggest part of the cash proceeds just from the completion of the Italian tower sale, which only took place at the end of June. We don't exactly have a lot of time to use those yet. I think all of them we'll be active pursuing. Thank you, Chairman. The next question is: What is the priority of the company's capital allocation? Well, it's a couple things. The top priorities, I think if we engage in earnings and cash flow accretive Telecom deals, hopefully engaging in in-market consolidation. That would be very good for the group. The second one would be retail stores, because they have a pretty good payback period. Continuing new investment in recurrent income in CKI, be it utility or steady income project, that would also be a priority. The two new areas would be debt repayment and share buyback. Those two together with the earlier three, the five priorities will be our focus. Thank you, Chairman. The following question is, what is a comfortable given level that will prompt increased return to shareholders? The world is pandemic and political issues are continuing and uncertainty seems to be the word in the next coming one year. I think the only guidance I have is that we have to maintain our gearing ratios to make sure that we can maintain our credit rating. We intend to stay in A class for our credit rating. Okay. Thank you, Chairman. The next question is about Telecom. Much we expect to see commencement of the revenue source from 5G. Canning, You're on mute, Canning. Am I? Yeah. We can hear you. Yeah. Okay. We are now building up 5G infrastructure everywhere: U.K., Italy, Hong Kong, Sweden, Denmark, and Austria. We are building all this out and actually, the one that we saw is that they provide exceptional speed. Then I think what we have received as one of the best weapon, to provide consumer with what we call the fixed wireless access. It is just a device to produce Wi-Fi at home at a speed even faster than fixed wire. Actually, I use it myself. That we are selling this fixed wireless access, started selling it, and the result is very pleasing. The income for Although we are still building, but we are also able to derive revenue from this new infrastructure. Thank you, Canning. The next question is on retail. Do you expect A.S. Watson will maintain double-digit year-on-year growth rates in EBITDA and EBIT in the second half? Canning. In last year, 2020, the recovery of the retail business was pretty good. We have a very good second half in 2020 against 2019. This year, I think we will continue to have good business. Of course, we hope that the COVID-19 in Asia, in the recent outbreak in the Mainland, will be over pretty soon. We still have strong belief that we can maintain growth against last year. I think I would like to be a little bit more conservative, but this business has been going strong since the beginning of this year. Yeah. Thank you, Canning. The following question is on sustainability. With the progress noted in your recently issued sustainability report, will sustainability be the key focus of the group in this area going forward? I think, we've covered already quite a lot. Frank have mentioned a lot, and also in the Chairman's statement, we've said a lot about our focus in the sustainability area. One thing I maybe want to highlight is that for a lot of other companies, sustainability may be a compliance issue, whereas for Hutch and CK Hutch and also the subsidiary, it's a new business opportunity. We've always been doing that. If you look at, for example, I use something close to home, Hong Kong Electric. The change from coal to gas and hopefully later on to renewable energies and the transmission of it is our active business. We're no longer only in the business of generating electricity. We're in the business of generating cleaner air. It's a new opportunity. It's a new product. That's Hong Kong Electric. If you look at CKI, we've been in solar, we've been in wind turbines, and we're looking at wind turbines that potentially can compete with gas. We are in the business of generation of hydrogen, looking at it as a hydrogen is like a battery, storing the power from be it nuclear or wind or solar that is not being used at the time of generation. If you look at electrical vehicles, most people look at the cars. I look at all the chargers that are necessary to charge up all the vehicles. If you have to charge up all the vehicles, you have to build a whole new distribution network with transformers and everything to charge so many vehicles. That's wonderful business for CK and Hutch. We're not looking at it only as compliance. We're looking at it as good business. Thank you, Chairman. Okay. The next two questions are about retail, what is the progress of the O+O strategy, and what is the sales participation of the O and O shoppers in Watsons China and ASW as a whole? Can I refer that question to Dominic then? Okay. Well, thank you, Victor. The O+O strategy has been working out very well. Just to remind everybody, our O+O strategy is not O to O. With the physical network that we have built together with the technology on the online capabilities, we have incremental business when a customer shop with us both offline and online. On our offline side, we promote the online products and categories and vice versa. On the online, we introduce, for example, coupons that they can use in physical stores. We are talking about incremental. This is a retail model for the future for A.S. Watson. Right now, I think the O+O sales participation is around, say, 18% for the group, and for health and beauty is 21%. We are growing. Just imagine that we have identified there's three times more spending for O+O customers than the physical store customers. The room for growth is tremendous. This is something that we are working on and is working out very well with feedback from the customers, with feedback in our CRM data. Canning, you have other things to add? Just one more point. Today, only around 9% of our base are doing O+O. The growth here was about 30%+. I think one of our strategy is to work on our CRM. To make sure, try to increase the participation of our CRM base to do not only shop in our shops, but also shop through our online channels. I think this is a way that can increase our sales revenue quite drastically. Yeah. Because this is a model that the customer wants. We are not imposing on them. That's why we have this 34% growth Canning mentioned. The O+O model is working out fine with good increase in growth. Also, Canning mentioned that the member, for example, in our entire portfolio, A.S. Watson, we have only 9% of our customer base is O+O. There's huge potential to convert them to do O+O. Okay. Malina, what is our latest number on the total customers on CRM? At the moment, it's HKD 140 million, which is HKD 4 million more than last year same time. This is a clear indicator of the good progress of our O+O strategy. The more members we recruit, the more opportunities we can get. Thank you. If I may also mention about China, I think the question also covered China. In terms of China, O+O sales participation reached 40%. The opportunities is, again, as Canning said, we are going to recruit more of the members. The current base is only 12% base of the 63 million members that we have in China. They're shopping O+O. We continue to convert more of them, and there's huge opportunities ahead of us. Thank you. Thank you. The other question about retail is, what is the payback period of opening new stores in China, and are you still considering opening new stores in China? Canning, do you want to pick up that question? Actually, it's more for Dominic, but let Dominic correct me. Okay. I think our job is the opening store. We open the store and then the payback. From head office, I only look at the return point of view. It has been because of the COVID-19, has been a slower payback, but still, 17 months payback, which is a damn good return. Yeah on our capital employed. do more, Dominic. Yeah. Well, in fact, it's very rewarding. Even under the pandemic, the payback period is only 17 months. For the health and beauty as a whole is 12 months. We got some quick payback in, for example, in Asia and say, Eastern Europe. This is good investment if you look at the return on capital. It's not only China. We're achieving similar results in Southeast Asian countries also. Yes. Yes. I mean, China is a wonderful market, but it is not China only. Actually, you go into other countries, the payback is that only 12 months. Okay. Yeah other companies is better. Yeah. Dominic, can you comment on that? Yeah. The payback definitely on average health and beauty is 12 months. China, 17 months, and Asia is nine months. Eastern Europe was nine months, and then Western Europe is less than a year. All these payback shows that we select the size correctly, and then the O+O model also helps t he footfall of customers coming to our physical stores and our conversion rate on our online. Yeah. Okay. Other questions? Thank you. The next question is on infrastructure. What are the opportunities to acquire new assets from CKI? Sorry, I couldn't hear that last sentence. Yeah. What are the opportunities to acquire new assets by CKI? Well, we're looking at new assets all the time. Other than in terms of acquisitions, but in terms of the traditional infrastructure, we're looking also into building infrastructure. One division that's been doing extremely well, especially during this pandemic, is all the water heaters in Ontario. It's not the infrastructure that we traditionally see as roads or highways or electricity. It is as essential as other infrastructure in other people's homes. I think we're the largest player in Ontario giving people hot water. Imagine in Ontario winter, you don't have hot water for your bath. I think that is a very good steady income. Now we are also moving into air conditioning. We are, again, providing air conditioning to all these homes. Now that CKI is working together with CKA and CK Hutchison doing this. In the meantime, we're also expanding in areas of meterings. In continental Europe, using our base in Germany, we're expanding into other countries. None of these are major sort of acquisitions, like big deals that we're to announce. It's like every week or every two weeks, we're making new deals, buying sort of a small neighborhood there, another neighborhood there on market share. In all of these markets, we're growing in market shares without making big announcements. Cumulatively, they are quite respectable. Infrastructure that doesn't look like traditional infrastructure will be something that we'd like to work more on. I can go on and on. Garbage collection. Sorry, I shouldn't use that word. Waste to energy. Yeah. Thank you, Chairman. Okay. The next question is about ports division. What is the outlook of throughput growth in the second half of 2021? Again, am I allowed to make profit projections, Frank? Well, we can talk about throughput, I suppose a bit, Chairman. I think I can talk about the first half. I think the growth in port is clear and strong. In the first half 2021, it's very strong momentum. You look at Yantian. It's, if I'm correct, 21% year-on-year growth. Frank, correct me if I'm wrong on numbers. It's 21% growth year-over-year in throughput. Even during this time in June, I think they have a scary experience with COVID-19. Given that, it's still 21%. I think I'm generally optimistic about second half. That's what I can say. The momentum seems to be continuing. Okay. Thank you, Chairman. Okay. Due to the time constraint, we are going to have the two last questions. They are all about Telecom division. The first one is, how will CKHH and Cellnex address the competition concerns of CMA? Frank? Chairman, I think I already addressed that. This CMA process is a normal process. It's actually Cellnex's process. They're the guys who are acquiring and need to get approval in light of the impact on their position overall in the market. It's a new situation in the sense that in the U.K. at least, nobody has owned as many towers as Cellnex owns today or indeed would own on completion of this. I think that they make the case very, very well. That that is not an adverse impact on competition, but actually it's probably pro-competitive in the sense that they are opening to the market assets that were off the market when they were exclusively used by existing MNOs. That's their case to make. As I said before, the good news here is that the U.K. process is not like the European process. You are convincing a new panel. The CMA staff make their case. Cellnex makes its case. We support that case in terms of facts relating to us that may be brought to bear. I think overall, I'm quite optimistic that it's a process that we will get through. As I say, we have gotten through it in five other countries, including in Italy, where the concentration is at least not dissimilar to the concentration that Cellnex would have in the U.K. Thank you, Frank. The last question is about Indonesia. What is the current status on the merger with Indosat? Canning? Okay. Frank? You are working on this. I have reported earlier when Michael put Indosat so that we are positive about this merger. Is there anything that you want to add, Frank? Just to say that both, all sides actually, because it clearly involves Ooredoo, it involves Indosat, which is a separate public company, and ourselves. All sides are working towards meeting that August 15th deadline, and I share Canning's optimism. Nothing is ever done until it's done. Hopefully we'll be in a position to make a good announcement on the 15th of August. I think maybe I can add my comment on this is, the synergy is quite obvious. I think there is good intent on both parties to conclude this. We're now really on the nitty-gritty and the logistics of it. Don't forget, Indonesia is now going through a really hard time during this pandemic. Staff safety and everything, I think we have to take a priority on this also. Frank, on one hand, we want a deal, on the other hand, we have to look at it from a human level. Yes. We're talking about lives here. It's very difficult operating in Indonesia now. People cannot travel. People cannot even move between neighborhoods. To conclude a deal in these circumstances, I think it's quite a challenge. Yes. Yes. I just want to share the human side with our investors that other than the numbers, which makes absolute good sense. Maybe a couple of days earlier, a couple of days later, is not the end of the world. We hope to make an announcement on the 15th. I hope. I hope so too. Yeah. Okay. Ladies and gentlemen, thank you very much for attending the presentation today. Due to the time constraint, we have to conclude our live broadcast today. I and our department will answer the remaining question very soon. Thank you very much for joining. No, I just want to say thank you to all the attendees, and I really look forward to seeing all of you in person in the not too distant future, because if I can see you, that means this pandemic is gone and business is good. I really look forward to seeing all of you. Thank you. Good health. Thank you. Bye-bye.