Ladies and gentlemen, good morning, welcome to Sembcorp Industries Half Year 2021 Results Presentation Webcast. I'm Lay San from Group Strategic Communications. The members of the panel for today's presentation are Group President and CEO, Wong Kim Yin, and Group CFO, Eugene Cheng. Without further delay, I will now hand over the time to Kim Yin to begin the results presentation. Kim Yin, please. Thank you, Lay San. Thank you, Lay San, again. Good morning, welcome to Sembcorp Industries' first half 2021 results briefing. In the first half of 2021, despite continued challenges due to the COVID-19 pandemic, Sembcorp continued to deliver essential products and services to our community. Our operations continued without disruption and delivered a resilient underlying performance. Now, let me briefly outline the key financial figures. In first half 2021, the group delivered a turnover of SGD 3.3 billion, up 26% from first half 2020. EBITDA was SGD 640 million, up 20%. Adjusted EBITDA was SGD 744 million, up 14%. Net profit before exceptional items was SGD 252 million, up 69%, while net profit was SGD 46 million compared to a net loss of SGD 42 million in first half 2020. Earnings per share, EPS, was SGD 0.026, and earnings per share before EI, before extraordinary items, was SGD 0.141. Group annualized ROE was 8.5%. The board has announced an interim dividend of SGD 0.02 per ordinary shares, which will be paid on August 24, 2021. Next, let me go through the key highlights for our different business segments. Focusing on the renewable segment of our sustainable solutions portfolio, net profit of the segment was SGD 24 million in first half 2021, compared to SGD 33 million in first half 2020. This was mainly due to low wind resource in India. Performance from our wind assets in China was steady, and the energy storage portfolio in the U.K. performed very well. For the first half of the year, we secured an additional 105 MW of renewable projects in Singapore and Vietnam, and continued to grow our renewables portfolio. In the first half of 2021, 78 MW of solar projects commenced operations in Singapore and Vietnam as well. Most notably, we successfully commissioned the 60 MWp floating solar farm at Tengeh Reservoir in Singapore. This is one of the world's largest inland floating solar photovoltaic systems, and it is a showcase of our solar capabilities as a leading homegrown renewable energy player. Our gross installed renewables capacity now stands at 2.7 GW, compared to 2.6 GW at the end of 2020. Next slide, please. The integrated urban solution segment has maintained steady profitability. Net profit before EI of the segment was SGD 63 million, compared to SGD 64 million in one half 2020. Net profit was SGD 69 million, compared to SGD 66 million the year before. Urban land sales was 68 hectares, and net order book was 238 hectares in first half 2021. Lower commercial and residential land sales in China and lower land sales in Indonesia resulted in lower contribution from the urban business, but this was offset by better performance from the waste business. The urban business continued to focus on building its land bank and platforms. In March, we received the investment license to develop a 481 hectare new industrial park in Quang Tri Province, central Vietnam. The province has been earmarked as a future economic hub, along with the East-West Economic Corridor linking Vietnam, Laos, Thailand, and Myanmar. In Singapore, in support of the Singapore Green Plan and our own decarbonization efforts, we launched Singapore's first solar-powered EV charging hub in July this year. We plan to open the hub for public use by other industrial vehicles by 2020. The conventional energy segment delivered a resilient underlying performance in first half 2021. Net profit before EI was SGD 185 million, up 46% compared to first half 2020. This is driven mainly by higher energy demand and margins in Singapore and India. The flexible generation assets in the U.K. also performed well. As announced on August 2nd, an exceptional item of negative SGD 212 million was recognized for the impairment of the Chongqing Songzao coal-fired power plant in China. Apart from losing its cost advantage as a mine mouth plant with the closure of the Chongqing mines, in the longer term, we also expect the asset to face competitive pressure from green energy. This is very much aligned with our underlying thesis for our brown to green transformation strategy. Including this exceptional item, net profit for conventional energy was negative SGD 27 million. In Singapore, we were appointed by EMA, the Energy Market Authority, as a new term liquefied natural gas importer in March. Our portfolio of energy solutions enables us to provide sustainable, competitive, and reliable energy for consumers in Singapore, where natural gas, the cleanest form of fossil fuel, continues to be a dominant energy source, even as we continue to grow our renewable business. In April, our utility service agreement with Eastman Chemical, a major customer on Jurong Island, that agreement ended, and we will no longer have profit contribution from Eastman in the second half of the year. In May this year, we unveiled our strategic plan to transform our portfolio from brown to green, and we laid out our strategic targets for 2025. This is just to remind you that these are our targets. Next slide, please. Now, this slide provides a snapshot of where we are as of first half 2021 against the strategic targets we set out for 2025. In 1/2 2021, we secured an additional 105 MW of renewable project pipeline and continue to look to building our pipeline across Southeast Asia, China, and India. Our in-stock renewable capacity grew to 2.7 GW. While the proportion of profit contribution from sustainable solutions may vary from one reporting period to the next, we are firmly on our transformation journey. We are focused on achieving our 2025 targets, leveraging our capabilities and partnerships with stakeholders, building on exclusive platforms so that we can be the leading Pan-Asian provider of sustainable solutions, delivering long-term value and growth to our stakeholders. Let me hand the time over to Eugene, who will take you through the group financial review. Thank you. Many thanks, Kim Yin, good morning and thank you, investment community, for joining Sembcorp Industries results briefing. I shall now take you through the group's financial performance for the 6th month ended June 30, 2021. As you remember, during our Investor Day on May 27 of this year, we unveiled the group's strategic plan to transform our portfolio from brown to green, with growth driven by the renewables and Integrated Urban Solutions businesses. I will now go through our financials under the new segments, which largely will be renewables and Integrated Urban Solutions, which collectively forms the Sustainable Solutions segment, which we have talked about, as well as the Conventional Energy and Other Businesses and Corporate segments. Sembcorp Industries achieved a turnover of SGD 3.3 billion for the first half of 2021, SGD 673 million or 26% higher than the corresponding period of SGD 2.6 billion. The higher turnover was driven mainly by the conventional energy segment, with improvement in the power demand as well as margins and spreads. Group EBITDA, which excludes major non-cash items, was SGD 640 million, or SGD 107 million, or 20% higher than the corresponding period last year. Including share of results from associates and JVs of SGD 104 million, our adjusted EBITDA was SGD 744 million, being SGD 93 million or 14% improved over the first half of 2020. Adjusted EBITDA growth was in line with the growth in turnover, though offset by lower contribution from urban's land sales and losses from the coal business in Chongqing Songzao, China. Net profit before extraordinary items in the first half of 2021 increased by SGD 103 million or 69% to SGD 252 million, driven by higher contribution from our conventional energy segment in line with turnover as well as EBITDA and adjusted EBITDA. The growth in adjusted EBITDA was enhanced further by the lower net finance cost offset by higher corporate tax, mainly due to U.K.'s increase in corporate tax rate as announced earlier this year. Year-on-year, net finance cost was lower by SGD 36 million through loan repayments and refinancing of the SGD 1.5 billion marine bonds, last year, and a lower interest rate through existing revolving credit facilities. The extraordinary item of a negative SGD 206 million for first half of 2021 comprises an impairment of SGD 212 million of the Chongqing Songzao power plant as announced on the 2nd of August 2021. That is offset by a gain of SGD 6 million from the divestment of Sembcorp Jingmen Water Co, which was completed in May of this year. Net profit from continuing operations was SGD 46 million for first half of 2021, SGD 88 million higher than the first half of 2020. Post the demerger with Sembcorp Marine in September 2020, financials of the marine business have, of course, been presented as discontinued operations. Earnings per share before extraordinary items for first half of 2021 was SGD 0.141, earnings per share was SGD 0.026. Annualized ROE for the group was 8.5% for first half of 2021, would have been closer to 14% before extraordinary items. The renewables segment recorded a turnover of SGD 146 million compared to SGD 137 million in the first half of 2020. The increase was driven by higher contribution from solar segment and also from the energy storage battery businesses in the U.K. Integrated urban solutions turnover of SGD 218 million was SGD 21 million or 11% higher than the corresponding period last year. This increase was mainly due to contribution from the businesses that is acquired by the waste management business last year, and that is offset by an absence of turnover from water businesses divested in the second half of 2020, namely our Panama as well as Chilean water assets. The urban business comprise largely associates or joint ventures, and that will be accounted for under the equity method, which we will touch on in the subsequent slide. The conventional energy segment recorded a turnover of SGD 2.8 billion, SGD 543 million or 25% higher than the corresponding period last year. The better performance was due to higher energy demand and margins in Singapore and India, as well as better operating performance of the U.K. flexible generation assets. Other businesses reported a turnover of SGD 117 million in the first half of 2021, an increase of SGD 100 million, mainly attributable to Sembcorp Specialised Construction. In the first half of 2020, SSC was impacted by the circuit breaker measures implemented in Singapore, resulting in labor constraints. That has resumed in the first half of 2021 this year. Now, this table shows the net profit contribution from the respective segments before and after exceptional items. The key highlights here are, we do have a lower renewables profit, and that's a result of lower wind resource in India, as well as we do have some start-up costs for the solar business in Vietnam as we focus on ramping up renewables growth in that place. Integrated Urban Solutions profit was lower due to lower contribution from land sales in the urban business, that is offset by higher contribution in the waste business. Improvement in conventional energy segment is due to the better performance in Singapore and India, and higher profit from other businesses, it was due to higher contribution from Sembcorp Specialised Construction, which was impacted by COVID-19 in the first half of 2020. This chart reconciles the group's net profit to net profit before extraordinary items from the first half of 2020 to the first half of 2021, and it shows the variances for each business segment on a year-on-year basis. Under Sustainable Solutions, which comprises the Renewables segment as well as the Integrated Urban Solution segment. Renewables performance in first half 2021 was impacted by low wind resource in India, as I previously discussed. For the integrated urban solutions, lower net profit is due to timing of land sales of our urban business, where we had lower recognition of land sales in the first half of 2021 compared to the first half of 2020. First half of 2021 also includes contribution from a waste business, which was acquired from Veolia, as announced last year in June 2020. The conventional energy segment saw stronger performance from Singapore, India, as well as the U.K. flexible generation assets as a result of higher demand as well as margins and spreads. This was partially offset by the Chongqing Songzao power plant turning into losses in the first half of 2021. In Singapore, just to highlight, there is also a net gain of SGD 13 million as a result of dynamic hedging activities that will unwind in the P&L in the subsequent periods on the delivery or sale of the underlying hedge items. In India, prior period recoveries net of expected credit loss provisions amounted to SGD 27 million contribution in the first half of 2021. In the other business segment, resumption of business activity for Sembcorp Specialised Construction, which was highlighted earlier on, was impacted by COVID-19 first half 2020, and business activities have resumed in this financial year. For the corporate segment, the improvement was driven largely by lower interest costs arising from refinancing of our SGD 1.5 billion bond with revolving credit facilities, and we have also tightened cost control across corporate spending in general. For the exceptional items, as mentioned earlier on, the first half 2021 exceptional items of negative SGD 206 million comprises SGD 6 million gain from the divestment of Sembcorp Jingmen Water Co and an impairment loss of SGD 212 million as a result of Chongqing Songzao power plant. This slide shows the capital expenditure of the group. Capital expenditure of SGD 176 million that was incurred in the first half of 2021 was mostly for new solar projects in Singapore and the U.K. battery facilities. The first half 2021 equity investment of SGD 4 million in renewables related to investments in our joint venture in Vietnam, particularly our Vietnam Singapore Smart Energy Solutions segment. Moving on to the next slide. First half 2021 cash flow from operating activities was SGD 480 million, or SGD 274 million higher as compared to the first half of 2020. This was mainly driven by improved operating performance and changes in working capital. Net cash flow used in investing activities was SGD 57 million, mainly for the purchase of property, plant, and equipment, partially offset by proceeds from the divestment of Shenzhen Chiwan Sembawang Engineering Co and Sembcorp Jingmen Water Co. Excluding expansionary CapEx, group free cash flow for first half of 2021 was SGD 562 million. As at 30th of June 2021, the group's net debt was SGD 6.6 billion, which is marginally lower than SGD 6.7 billion as at 31st December 2020. Total borrowings remained steady as decrease in long-term borrowings due to low repayment was offset by our very successful issuance of green bonds. As you know, in June 2021, we have successfully launched our inaugural SGD 400 million green bond offering, which was very competitively priced at 2.45% for a 10-year issuance. This is also the first certified green bond under the climate bond standards by the Singapore-based energy company. For the first half of 2021, gross debt to annualized EBITDA and annualized adjusted EBITDA was 6.0x and 5.2x respectively. While interest cover over EBITDA and adjusted EBITDA was 3.0x and 3.5 x respectively. This was an improvement over the respective ratios as at December 31st, 2020. This table highlights the maturity profile of the debt at the end of June 2021. The maturity profile has not changed substantially from the 31st December 2020, other than for the rolling forward of the six-month period ended 30th June 2021. As at June 30th, 2021, out of SGD 7.7 billion, 12% of our debt is due within a year, 43% between one to three years, and 31% of our debt is due after five years. Our debt has a weighted average maturity of 4.5 years and weighted average borrowing cost of 5.1%. If you will recall, during the Investor Day in May, we have highlighted the SGD 2 billion of corporate maturities coming due in years two and three. As discussed previously, the bulk of it relates to maturities in our revolving credit facilities that have been drawn to fund the redemption of the SGD 1.5 billion marine bonds last year, as well as other term MTN securities coming due. The intention, as highlighted during Investor Day, will be for us to tap on our access into the sustainability-linked instruments and traditional MTN bond markets to term out the maturities. At the end of June 2021, the group's cash and cash equivalents were SGD 1.2 billion, and our unutilized committed facilities were SGD 1.2 billion, an increase of SGD 400 million since December 31st, 2020, with the SGD 400 million Medium Term Notes, green bonds as issued in 2021. In total, the group had SGD 2.4 billion of cash equivalents, and unutilized committed facilities at the end of June 2021. The group also had unutilized uncommitted facilities and unutilized trade-related facilities of SGD 3.7 billion and SGD 818 million respectively. As mentioned during the Investor Day, our target would be to free up and maintain at least SGD 1.5 billion of committed RCF facilities to underpin our five-year strategy execution. As mentioned in the slide early on, we are in the process of terming out the maturities in our RCFs. Moving on to the business outlook for the rest of the year. Significant challenges remain for the economies around the world. Uncertainties continue to persist with regard to the COVID-19 pandemic, with the potential resurgence of infections globally. Underlying the performance of the group will also be negatively impacted by changes in the customer profile in the United Kingdom and Singapore, as well as loss of income from divested water assets in Panama and Chile. There are potential downside risks in the conventional energy segment across markets due to higher market volatility as well as higher fuel costs. In addition, there will be planned maintenance shutdowns in Singapore, Myanmar, and India in the second half of 2021. The group is continuing to transform its portfolio to focus on sustainable solutions that support the global energy transition and sustainable development. In the first half of 2021, 78 MW of renewable energy capacity was installed, and approximately 87 MW of renewable energy capacity is expected to come on stream by the end of 2021. We just want to point out other developments for noting. Performance of the second half of 2021 is expected to be impacted by planned maintenance shutdowns for the Singapore Energy from Waste plant, the Sembcorp Myingyan Power Plant in Myanmar, and for India's SEIL Project 1 and Project 2 power plants. There would be impact on earnings in Singapore and Vietnam as the natural gas contracts in Singapore approach expiry in 2028, as well as Phu My 3 Power Plant in Vietnam, as it faces reducing tariffs as its power purchase agreement approaches expiry in 2024. With this, I end my presentation, and we are happy to take any questions that you may have from here onwards. Thank you. Thank you, Eugene. Thank you, Kim Yin. We will now proceed to the Q&A session. Here are some quick instructions. To ask a question, please click the Raise Hand button located at the bottom of your Zoom window. If you would like to cancel your question, you may lower your raised hand with the same button. When it is your turn to ask your question, we will call upon you, and you will be prompted to unmute yourself to ask the question. Please repeat your name and state your company when you have been unmuted. If you are unable to ask your question in the webinar, you can email your questions to our investor relation mailbox at inveinvestorrelations@sembcorp.com, and the management will address them during the session. Thank you. Hello, I'm Terence from Phillip Securities Research. Thanks management for the presentation today and opportunity to ask a question. I was just wondering if management can provide more details on the impact of your earnings from the planned maintenance shutdowns for your Singapore plants and some of the India plants as well. Thank you. Eugene? In terms of the impact, in general, we do have a scheduled maintenance. It's just that for the second half of this year, some of our maintenance, particularly with the EfW plant in the first half, has been delayed into the second half. On a year-on-year basis, we do expect to have a slightly higher maintenance days compared to last half of this year. In general, the assets that will be impacted, as highlighted, will be our EfW plan in Singapore. Our Myingyan plant in Myanmar, as well as across both India P1 and P2 plant. In terms of the specific quantum of the impact, we are not able to disclose that, but suffice to say, there will be a greater impact in terms of plant maintenance shutdown compared to last time. Sorry, this may be a bit of a stupid question, but can I find out why the maintenance days seems to be a little bit higher than planned? In relation to that, both P1 and P2, in terms of the maintenance, they're undergoing their annual, kind of like a planned capacity overhaul. That's a little longer than a usual maintenance. Also mentioned earlier on, for our EfW plan t, this year, we are also doing the maintenance, but because there was a defer of some of the maintenance hours in the first half of this year into the second half. Compared to last year, we have a higher amount of downtime. Terence, if I may add, some of these, actually all of our maintenance regimes, it depends on very strict engineering requirements. Let's say gas-fired plant like Myingyan. Every X number of hours, you will have a different type of maintenance or overhaul. Myingyan plant is a relatively new plant, but it has hit the point where we have to do a hot gas path inspection. The hot gas path inspection is a major undertaking. We need to get 100 engineers or technical people that are not present in Myanmar into Myanmar to help us do this maintenance. I liken it to when you drive a car, your first 10,000 hours, they ask you to go in there, they just look at the engine oil, check the brakes, then they send you out. Takes two hours. If your car is already 50,000, the type of maintenance you do at 50,000 is different. They will need you to keep the car there for one day, two days, something like that. It just happened that we have a hot gas path inspection in Myanmar. Our EfW plan t's maintenance was, as Eugene mentioned, somewhat deferred. Our P1, P2, we knock against this particular milestone where we really need to take it down to examine some of the equipment. What is important is that I think while we cannot give you the exact number, compared to first half or rather second half 2020, we have all this maintenance that we didn't have last year. What we are pointing towards is that, because of that, these assets will not be in the position to contribute, at least during the period that they are down. These are not short. We're talking about 45 days here, 30 days there, and so on. I hope that sheds some color on it, although we don't provide all the details. Yeah. Thanks so much, Kim Yin and Eugene, for this. Maybe if I can nudge me in one more question. Can I get more color on the wind power situation in India in the first half of 2021? Maybe also, what's your outlook for the maybe rest of the year as well? Thanks. Eugene, you want to take a stab first? Yeah, I'll take the first stab. For the conventional power business for the first half of the year, compared to last year, where the first half was particularly hit by COVID, not that India is not still struggling with COVID right now, we did see about two to three months where demand for power was higher than last year. Generation did go up. As a result, the dark spreads, the tariffs and also dark spreads, particularly on the uncontracted portion, did go up. As a result, we did see a stronger performance out of India, for the conventional, the thermal business, both from a demand as well as a spread perspective. Now, coming into the second half, we're starting to see demand taper off a little bit. I think the second element to consider is also rising coal costs. As you would know, coal prices have been increasing fairly significantly. The uncontracted portion of our India coal business is affected as well. In general, we do see a tapering off of demand, and as a result of rising fuel costs, resulting in a compression of the dark spreads expected in the second half. Also, for a couple of months, we see the demand improving, and then spreads improving. India got hit with this very serious wave of COVID, if you remember, a few months ago. Yeah. Suddenly, the demand tapered off because economic activities are affected. Right now what we're seeing is that wave has more or less tapered in India, right? Second half, you like to think that maybe you will recover, but we haven't seen enough of it. That wave has actually rippled out in Southeast Asia. We're beginning to see more cases in Myanmar, especially, much closer to India, Indonesia, Malaysia, as you have observed. We think COVID will continue to be a significant impact to our business in the second half, even though you just can't tell. You don't know. For a while, Singapore was okay, Vietnam was okay, now you look at even China got so many cases. How is it going to impact? Depends on government actions, how much they shut down, and the impact on economic activities. We just want to be very cautious. Now, coming back then to India, other than conventional energy, there's of course the renewable energy. This is something that we, season after season, we watch very closely. We are very big in wind. I don't know whether, we can call up that slide with the wind resource in India, the historical one. Li San, are we able to flash that? If you see this is from 2000, right? If you just look at wind speed, of course, India is a very big place up, right? This is sort of a very grossed-up average, but it gives you a sense of if you are running a wind business in a place like India. Of course, in specific locations, we have got very detailed charts. For the purpose of this, you can see how historically this has changed in India. This is across seven states. Last year, 2020, we actually had a little bit of a very stressful time. It was historical low. This first half, we see it coming back a bit, but wind is wind, right? We hope that we have hit the trough. If you look at the trends, it goes up and down. We hope that we hit the trough, and that it is on its way up, right? This is not something that we can put any certainty behind. To put into perspective, I think since you asked about India specifically, and especially in terms of renewables, one of our biggest contributors and portfolio in terms of capacity is actually in India, our wind portfolio. This is something that we watch very carefully, very closely, and we are hoping that India wind, at least in terms of resource, has hit a trough and is on its way up. We'll only find out when the wind blows other than the pun. I just want to give that perspective, share that with you so that then every time we say that, "Hey, look, we're having low wind resource in India. Low wind resource in India." What does that mean? How do we think about it historically? How do we then even form a view moving forward? This hopefully at least provides some additional data. I hope that helps, Terence. Yeah. Eugene, thanks. That helps a lot. Can I just ask one last question? The land sales contribution from China was a little bit softer in the first half of 2021. I was just wondering if this is a little bit more one-off or you all see this as potential continuation for second half especially of the first half. I think in relation to that, Terence, it is more of a timing issue, right? Where in terms of the land sales timing, where it is a little slower compared to last year. I think, going into the second half, we do expect from the urban achieve to see the momentum of the land sales resume across China, Vietnam as well. This just really in relation of timing, I don't think we are really seeing a structural softening at this point in time. Of course, one point to take note is that the COVID-19 situation, depending on how the COVID-19 situation develop across our key markets will have an impact. In terms of land sales, many people actually would want to physically be able to look at the land and some of the properties as well. If the COVID restrictions continue to worsen, for example, and people find it difficult to travel, then there could be a further slowdown on the sales. In general, we do not see this land sale softening as being a structural softening. Yeah. No, certainly agree. As long as you have the land, you're holding it. Eventually, we have to time it properly so that we optimize the price outcome as well, right? In terms of, I think what is important is that we have to see whether we continue to have the ability to acquire new land bank, right? From time to time, are we able then to monetize it? Develop and monetize it. Holding it for a while, I think it's fair game, and depends a lot on short-term government restrictions, especially in the COVID-19 season. To be very honest, I'm not very worried about that at all. In fact, sometimes you think, if you hold it a bit longer, maybe, the uplift is much better, at the right time, you will use it. Thanks so much, Eugene, Kim Yin. That's all from me. Thank you. Thanks, Terence. Next in queue, we have Rahul Bhatia. Yeah. Thank you. Hi, good morning, everyone. I have a few questions. Maybe I'll take it one by one. Firstly, I think if we compare the China coal assets and India coal assets, we impaired the China coal asset this time. If we think about the reasons, right? Like short-term reason, the coal price is high, long-term reason, there is a transition to green energy. How these two assets are different that it led to an impairment in China but not in India, and specifically for the P2, which is uncontracted mostly. In the case of China, Rahul, what is happening is that that plant was built next to the mine, so that it can take advantage of the low cost of fuel, right? That provides the business and the plant with a very distinct advantage. Right. What happened is that with the closure of the mine, it has lost that distinct advantage. In fact, it is now in a disadvantage because it has to transport all that coal from other places in order to keep it running. At the same time, that part of China is on its path to really push ahead on decarbonizing. Chongqing, it is in the confluence, in a region where they have access to hydropower and increasing hydropower through transmission lines coming from Zhangjiajie. They are also building in the surrounding areas a lot of renewables, wind and solar. It can tap on the neighboring provinces like Sichuan, even Gansu. We can bring all that renewable power into Chongqing. When we look at impairment, and carrying value, the long-term prospects of the business is obviously most important, right? Short-term, things can come up and down season after season. Of course, it does impact earnings and profitability. More importantly is long-term value. In the case of Chongqing, with the loss of the mine and the mine mouth coal, it has lost its long-term competitive position, right? With the new sources coming in from transmission line hydros, renewables, we see that its long-term future is in fact more challenged than less. Right. Compared to P2 now. P2 doesn't have this loss of advantage. The long term, you can still see that there is, you can ascribe value to the long-term viability of the business. We share the concern, actually. When we think about these core assets, and you were there when we come out with our strategic plan, 2025 Brown to Green. We watched this very carefully between the China coal plant and India coal plants. In the case of P1, P2, what we monitor it closely to study the carrying value versus the long-term viability and value. One of the key indicators to the P2 and for that matter, PM P2 business, SEIL, we call it Sembcorp Energy India Limited, is whether or not we will be able to secure contracts. If we're able to secure long-term contracts, that's again, coming back, is an indication that there is value beyond the immediate term. Once you have that, there is some confidence and support to stand behind the carrying value on the books. Right. Just to summarize, answer to your question, between China and India, really it is, we look at long-term value. China, it lost its long-term competitiveness when it lost the mine and the source of coal. In the case of India, we have no such condition, number one. Number two, long-term value, we continue to watch it very closely with the brown to green considerations in our mind, while, as an indication of its long-term value is whether or not it would be able to secure longer-term contracts. Right. There are many other intricate considerations when people put together cash flows, discount rates, and so on. In a nutshell, the difference between China and India coal businesses, when we look at whether or not to impair, not to impair, this is a key difference. Right? Again, I want to emphasize that for India coal business, we are watching it very closely. We do share, for whatever it is worth, I think we care about it as much as you do, if not more so. I hope I sort of shed some light on how those decisions are made and the thinking behind them. Eugene, you have anything to add to that? Yes. Thanks, Kim Yin. I think, Rahul, in looking at, I obviously will give a slightly more technical answer. In looking at impairment, the key question is what are the triggers that will lead us to believe that there is a clear, long-term diminution in the value of the asset? As Kim Yin has already pointed out, the key trigger there is the fact that the coal mine has lost its mine mouth advantage. As Kim Yin has pointed out, the plant was designed and also contracted on the basis that it would be able to get this very advantageous and cheap coal out of our partner in Chongqing. With that advantage gone, it will have to then, number one, import coal from the regional provinces, therefore being exposed to market pricing of coal. The second thing, quite substantial coal logistics costs, such that the landed coal price foreseeable into the long term, coming into that plant is very much substantially lower. As a result of that, and also taking into account, as the closure of the mines really came out of government policies. We also considered whether there would be a clear articulation of long-term sustainable support from the Chongqing government into the longer term. I think at this point in time, the sufficiency and the clarity of that is not clear. The very fact that the very reason for the plant being there is really gone, and also the fact that there doesn't seem to be any long-term support and mitigating factors for the reason, the structural change, therein lies the trigger for the impairment. For India, as Kim Yin has already pointed out, at this stage, that's not there. Of course, we will be looking at the Indian assets very closely with those concerns in mind. Thank you. This is very clear. Thank you. Maybe I just want to move on and discuss about the divestment company of the SGD 5.5 billion, five-year investment plan. Why in your internal assumptions, you are including this impaired China coal asset as one of the components for divestment? Secondly, if I assume that you would be thinking about divesting the India coal assets in future or you are trying to right now, what is the key bottleneck you see? Will it be about finding a buyer, or would it be about getting the right price based on your book value? If I hear you correctly, Rahul, and correct me if I'm wrong. In the case of China, of course, having written it down, our main consideration will be to decarbonize. We are committed in our 2025 plan, that we need to reduce our carbon intensity. Also want to increase the contribution from our green sustainable solutions assets. I think those are the key considerations that will be driving our thinking in the next few years, to acquisition as well as divestment. All right. I just want to set that as the broad picture so that then you can see how our thinking will be guided by those priorities. Yeah. When it comes to India, to your question, whether or not it is the buyer, whether or not it is the assets, again, we are thinking about the key criteria is how are we going to increase the contribution from our green portfolio. How are we going to decarbonize the portfolio, bearing in mind that these assets are the ones that are giving us a very heavy carbon footprint, while at the same time they are also contributing to the earnings portfolio. Won't be able to tell you exactly what we're doing, because I think those are commercially sensitive. I hope you could understand who we're talking to, what type of structure we're talking to. Suffice to say, again, guiding our thinking at the end of the day is that slide with the donuts as well as the bar charts. I never stop flashing the slide in front of the board, in front of management, and also in front of you as I did just now, I think to align all the thinking that those are the driving priorities in our mind in terms of managing the portfolio moving forward. The fact that with this particular trigger, Chongqing Songzao, we have to write it down, which is by itself not a good thing. You have a write-down of such a magnitude. Every cloud has a silver lining. By having written it down, it does create a lot more flexibility and perhaps optionality as to how we may decarbonize from that point. Yeah. Just to supplement Kim Yin's point, Rahul, I think if you're talking about the SGD 5.5 billion, of which the expectation is about 50% is to be a mix of options, if you will recall. It's going to be funded from the operating cash flows coming from growth, from divestments, as well as capital recycling. I think, in terms of funding that portion, we do have a very significant portfolio of assets that will be reaching maturity at different points in time. Also, we have a stable solution segment as well. Clearly, when we think about capital recycling, we'll be cycling through those assets to see what is a suitable for recycling, for the factors that we have discussed during the investor day. We are not hinging clearly on just divestments alone, but on that part of that, it is a holistic look in terms of allocating operating cash flows, divestment, as well as capital recycling proceeds. Just to be clear. All right. Thank you. I think I'll pause for now. Maybe I'll come back later if there is a chance. I'll give chance to others. Thank you. Thanks, Rahul. Hi. Thanks for the opportunity. I have two questions, one on Singapore and another on India. I think in Singapore, you talked about in your presentation about how you're seeing some stronger demand and better margins as driving the Singapore earning. Could you just give a little bit more color on that front? As we go into second half where I can see that the USEP prices have spiked in July, how should we think about the profitability about your Singapore energy business? On India, I think, without sounding like an environmentalist, your wind speeds have been affecting your SGI earnings for about two consecutive years. Now, let's say the wind speeds don't improve from here. How would this impact your renewable strategy in India? Thanks. I'm going to touch on the stronger demand and better margins in the first half that impacted Singapore. I think in the first half, there are a couple of things that happened, right? That we see a slight better than last year in terms of electricity generation, right? In terms of spark spreads, we did achieve slightly better than expected spark spreads. Partly because of the advantages in tariff and also the fact that we are able to pass some of that Vesting Contract Debits and recover that from our end customers. In terms of the gas, the scheme, sales situation, as you would know, HSFO prices were high, higher than last year in the first half of this year. The combination of that did help the overall spark spreads as well as gas margins in the first half of this year. Coming into the second half of this year, I think the key thing that we see is that in terms of gas, JKM indices were going up coming into the second half. As a result of that, we do see that potentially impacting margins overall. Now, Kim Yin, do you have anything to comment? No, not on that. I was going to come in on India. Yes. I think the wind resource assessments, they are based on very technical, sophisticated studies. Right. Lay San, you can put up the slide also if you want. I think we've shown it before, but the point really is that we don't think wind will stop in India if we start. When you have a big enough portfolio, you would hopefully have more portfolio effect. That's number one, as we grow our portfolio. Number two is even across all of India, right? I showed you the gross top seven-state wind resource chart just now. There's also the historical ups and downs. If your question, and I read it very carefully, is that how does it impact the renewable strategy if wind speeds do not improve? I think the long term, or at least the engineering studies are suggesting that this is part of the ups and downs, right? It should be very given. Again, if we have the portfolio, and we have deployed mitigation measures, we should be able to ride the ups and downs. Right? That's the whole point about this. At this point, there is no desire to adjust our renewable strategy in India, because we have experienced a bad wind year or two bad wind years. Now, the next slide. Li San, can we have the next slide? Those, that's the existing portfolio. Moving forward in our new assets that we either build or we acquire, we have to look at the slide just now and this slide is trying to explain that there are many things that we get into in terms of assessing moving forward, and what type of wind we can expect. We hope we are sharpening our pencils and doing better on the one hand. On the other hand, we hope that based on all the studies that all the experts are able to show us, shows that there's going to be the ups and downs, and last year was a historical low. I'm not the expert, and I'm not able to obviously say, "Oh, it's going to stay there. It's climate change." Right. That's why we're not coming out to say that, "Oh, look, this is all due to climate change." If it's due to climate change, all that studies go haywire. We know that it's climate change, but there's the best of available assessments that we have, between us, the entire industry, is that this is cyclical and that if you, especially if you have a big enough portfolio, you'll be able to have the portfolio effect going into it. On our part, we have to sharpen our pencils, in terms of doing better in forecasting, doing better in terms of capturing, and then doing better in terms of mitigating some of these effects, right? I think in our investor day, and you were there, Zhiwei, we also spent a bit of time talking about what we would do to make sure that when the wind is blowing, we are available, instead of not being there, not being available because of maintenance or other reasons and not being able to capture it. Again, relative to some of the other players that we observe, relative to even ourselves, between self-operation and outsource operation, putting in this concept and driving people through this concept of energy-based availability has really helped us capture more wind than otherwise that if we were not looking at it. The point really is, in a very long-winded way, I went through all that, is that at the end of the day, the first short answer to your question, no, it doesn't change our wind strategy just because we have two low wind years. You can see that first half of the year is better than last year. I'm not willing to sit here and just tell you that second half is going to be better than last year second half for sure, but we'll see. Again, the wind studies, that is available to us, and we are deploying the best that is available. Also all the other mitigation measures that we have, and also the capabilities and knowledge that we are accumulating over time is helping us do better than the next guy. I think to some extent, it is relative. We are watching the Olympics now, right? It is always relative. You beat the next guy, you are good. Are we able to do better, however slightly, than our competitors in this game, then I think we will be fine. India will always have a wind industry. India will have to tap the wind resource as it goes on to its renewable, green journey, right? There is no doubts that wind industry will continue to be high growth as well as a very important source of energy for India. Because of that, we are already in India. We already have a critical mass and a good position to continue to want to play in that market. Like I say, it's like the Olympics. You have to run a bit faster, run a bit smarter, outlast, outsmart, outplay. As long as you have the ability to do a little bit better, if not a lot better, we'll be fine. Very clear. Thank you very much, Kim Yin and Eugene. I'll hand it over. Thanks, Zhiwei. Thank you. Next in queue, we have Cheryl Lee. Cheryl, you've been prompted to unmute yourself. Please proceed to ask your question. Hi. Morning. Thank you for the opportunity to ask questions. I have two. The first is actually about the conventional energy, and if we could get some color of the SGD 58 million improvement, the year-on-year breakdown. In terms of quantum, just to get a sense, was it driven to a bigger degree to changes in India or Singapore, for example? I guess the rationale for this question is just trying to get a sense of perhaps what is sustainable or some understanding of how much of this strength could be a bit more volatile versus from half year to half year. Thank you. Yeah. I would say, Cheryl, we aren't able to give you the outright breakdown between the two segments. What I can comment is that, for India, okay, a lot of the improvement that we see in the first half, as mentioned earlier, okay, came about as a result of there are some months in which we have saw higher than previous half in terms of demand and also a result of a dark spread. Going forward into the second half, as mentioned also earlier, there would be an increase in the coal cost and also a tapering of that demand. The demand really, it depends on how the COVID situation turns out. That would be the element in relation to India. Now, for Singapore side of things, the improvement came both from the energy as well as the gas business. Although on the Singapore side, there was a SGD 13 million gain, that is recorded in the books of the conventional energy side of things. That is in relation to hedging dynamic hedge gains that for this period, they were not hedge accounted for. Going forward, it will be. Generally for Singapore, the underlying improvement that we see in the first half, largely it's, as mentioned earlier on also, improvement in energy demand. We did see better spark spreads. We were able to recover more Vesting debit charges through our end customers. On the gas side of things, in the first half, also, we benefited from higher HSFO pool prices. There's another element to consider for Singapore in the first half. If you recall, last year we did say that one of our key customers, which is Eastman, was expected to exit by the end of 2020 without any contribution. Actually, Eastman did stay on till the end of the first quarter. That helped in performance for the first half. Of course, those contribution from the Eastman earnings are not expected to be in the second half. I would characterize the outperformance that way. We would not be able to share with you the breakdown of the SGD 58 improvement across the two countries. Okay. Thank you very much. Cheryl, if I may, I just add a little bit more color to that. I think the prospect statement actually was carefully crafted, and it says a lot, right? On the one hand, there are the one-time things that are not going to repeat itself, like Eastman. On the other hand, we have had continue this slowdown that one can expect coming from COVID and so on. We would want to be very cautious to think through whether or not the second half of the year will perform like the first half. I would caution against that. On top of that, we have the shutdowns that we mentioned. The last thing I want you to do is to take our first half earnings and then just extrapolate in the second half, it's not going to happen, okay? I think it is, on a serious note, to be very circumspect over the second half because seasonally, we usually have better first half than second half also. In the case of the U.K., for instance, there's the winter. The winter spikes really suits our fast response and battery portfolios very well. As we enter the summer months, the mildest seasons for the second half of the year, we shouldn't expect the same performance from the U.K. India and Singapore, it's very much minus all the one-time things and the shutdowns that one can anticipate. It is also how each economy can recover from COVID-19, what each government does. None of this we have any certainty or visibility. It just develops week by week. I wouldn't say day by day, but week by week. New measures are being put forth. Again, second half of the year, compared to the first half and compared to the last year, I wouldn't be counting on it doing as well. Okay, noted. No, thank you very much. That's actually very helpful. My actually second question is about Chongqing Songzao. Could I just clarify, you have a 49% stake. Could I just clarify issues such as management control, and how much say you have, given that you have the smallest stake? Things like your intentions to decarbonize or maybe change the structure of the plant or who's in the driver's seat and if you want to change the configurations and things like that, even the license, to what extent are you able to do this easily or not so? Short answer to your question. Short answer is that the partner actually has more say. In fact, they are also the owners of the coal mine. They're a state-owned company. We go in there, our role is currently to bring in some technical capabilities, to bring in the commercial discipline, financial discipline. That was what we contribute. In terms of, let's say, wanting to reconfigure, wanting to work with the government to recast the role of this plant, the partner will have to be in the lead and in the driver's seat. We could give suggestions. Of course, we can block it as 49%, as in any other 49% arrangement. The clear lead in that situation, in that business, is the local partner. Okay, understood. Thank you very much. That's all from me now. Thanks. Thanks, Cheryl. Siew Khee next, right? Next in queue is Siew Khee. Siew Khee, you've been prompted to unmute yourself. Please proceed to ask your question. Hi, good morning. Good afternoon. Good afternoon. Hi. I'll just go one by one, if it's possible. I do have quite a few questions. I try to keep it to this kind of big picture question, okay? There are still some detailed ones that I need to check with you. In the slides, you actually mentioned that there's credit loss of SGD 27 million in India. I remember there were also such recovery last year. Is this something that we can actually expect to recur? It's not credit loss, right? We're talking about late payment surcharges that is recovered. It's a recovery allowance. Yeah, recovery allowance for expected credit loss. Yeah. I think in India, in terms of the earnings, apart from the higher demand, there were also three key elements, I would say, that came up in the first half. One, we did have a positive capacity payment throughout, in relation to the last financial year, up to 31st March of 2021. That is for the actual financial year on the ground in India. Okay? That one, that element, I'm not able to give you the breakdown, but I'm just giving you highlights of some of the elements. That element, it depends from year to year on how the capacity of payments actually are throughout. Okay? The second element, which is, about at least half of what is coming out of India, is the late payment surcharges that is levied upon the DISCOM. That, from a quarter- to- quarter basis, the DISCOM actually reconciles the accounts receivables with us and late payment surcharges then agreed accordingly. That will take place from a quarter- to- quarter basis. Going forward, these conversations will continue to happen. The third element is slightly offset as a result of ECL charges. That will depend on the ECL assessment at the end of each financial period. It would be hard to say whether the ECL charges will recur or not. That will be assessed at any one point in time. I think in the very long answer to your question, Siew Khee, the key element is that a part of it will recur from time to time. That's particularly in relation to the late payment surcharges. Thank you. I suppose the ECL assessment will usually take place every quarter. You ought to actually, of course, by year-end of their books, you would actually assess it. I take it that you will also do it at group level when you have the report, right? All these three elements. Okay. Yes. Okay, thanks. That's very helpful. Just on India again, I know that there's a difference between Chongqing and India in terms of the outlook. Just wanted to check, because CEO mentioned that the reason why there's no impairment in India is because the long-term outlook is still there, and you're still hoping for long-term PPA. Are we actually close to hearing any long-term PPA coming up? Are there still long-term PPA being given out right now? What I'm trying to say is because in case something happens and then end of the year, you review the book, and then you decide to take a charge, like Chongqing. I wouldn't preclude that possibility. As I say, there is a very strict methodology and process we have. Right now, then to the other part of the question, whether or not there are long-term PPAs being discussed. Yes, there are. It's not just one, there are several. On top of that, there are also new possibilities coming up. For instance, the Indian government have put out this new bid called the round-the-clock bid. Which is out there that we potentially can participate. I'm not saying that we will, I'm not saying that we'll win, but to the point whether or not there are more long-term PPAs, there's this thing called round-the-clock bid, in which they're asking for proposals for renewable plus thermal as a combination round the clock because renewables are intermittent. That only certain hours, especially solar, will be available. They want to have that supplemented by thermal power. Together, one has to guarantee whoever is the winner of that bid, we have to guarantee certain availability of energy, be it coming from green and brown, a certain profile, a certain proportion must come from this and that. That bid will be coming up, we understand, in this half of the year, but we don't know exactly when. Again, we're not saying we'll participate. We're not saying we'll win. All we're saying is that, to answer your question, whether or not there are new contracts that are out there. Yes, there are, right? This is one example. Even if it's not the pure thermal. In the meantime, we're talking to several parties. The idea really is whether or not going back to the point that I think Rahul was also asking is, what's the difference? When do you take one, when you don't take one? I cannot recruit the possibility of us taking another one on India. Wanting to share with you how we think about it really is that, look, at the end of the day, as [dad] said, it's a long-term. When we look at the carrying value, it has to be based on a long-term prospect of it, not just the one year or two years. Then the long-term prospect really depends on whether or not this business has value, right? If the value of the business is, there's no prospect of it driving the value that we're carrying on our books, then by accounting principles and by commercial principles, one will have to take an impact. Again, in the case of Songzao, it's very clear. It lost its role. It lost its advantage. It lost its rightful place in the system. It's no longer competitive. Because of that, we have to take it out. In the case of India, till today, at least this season when we looked at it continues to have that ability to drive a value and a margin, right? Its competitiveness compared to where it was one year, two years, three years ago, has not materially deteriorated. Right. What we want to see is whether or not there is support. If this thing has value moving forward, it has its rightful place in the system, it continues to serve an important role, serving competitively priced power, notwithstanding it is coal, somebody is willing to sign you a contract. That is an indication that will provide the support to simply an assumption in cash flow. Those are the things that we're looking for as we think about it. Season after season, we look at this very closely. When we think about this, we also think about the fact that it is coal. In longer term, its competitiveness is going to erode as the value or rather the cost of carbon increases. As the cost of carbon over time, we cannot expect that to increase, especially in our strategy to go brown to green. As that burden, if you have to put that waste onto the coal-fired power station, in the long run, can it continue to survive? That is a very hard-nosed way of thinking about it. I hope I've given you some color, and again, how we think about this thing. I don't think I would sit here and say, "Don't worry, there's not going to be another one." The way we think about it is as such. There's a good reason, there's a trigger to Eugene's point in the case of Songzao. It has lost its role. This one, at least at this point, continues to look like it has its rightful role. Now, we are looking for validation, and we are looking for support and certainty. Thank you. That's very helpful. I guess, I just have to say sorry first in case next quarter I have to ask you this again. I guess it will just come up because we are also being asked- That's fair enough. by investors. That's fair enough. Don't worry. Okay. No, I accept the question. I'm more concerned than you are. I look at this thing and I say, "Hey, look, between you and me, if season after season, I come and take one, take one, take one like that, this is ugly. Yeah. We're dealing with very sophisticated analysts and investors, so we want to be very upfront, and we want to be clear. We do. At least we believe we're doing what's right. Okay. Sorry, Eugene, you wanted to say something? I was just saying that to add to Kim Yin's point, we are watching it very closely. We have a clear process for looking out for these impairment triggers and also a detailed way of analyzing how the triggers will factor in into assessment of the carrying values. I think the fact of the matter is, I understand from the financial markets, and also for yourself, as you keep to ask the question, but from our standpoint, we are focused and watching on it very closely. At the end of the day, it is a pretty sharp and critical assessment of the situation, as Kim Yin has pointed out, in relation to the long-term prospects. We are watching it very closely. Okay. Thank you. Sorry, this is my last question on India. You mentioned, I know you have actually given us a clear outlook in terms of how it would look like in second half for India and all the plants that actually have maintenance shutdown. This first half, of course, your conventional energy, which India has actually done quite well, with the recurring of the recoverability. Second half with the maintenance shutdown, will it be so long that it could be in a loss position for whole India? I guess not, right? Well, I think suffice to say for the entire India as a country, right now, we do not foresee, well, it wouldn't be in the position that you pointed out. Okay, thanks. I have just three last question. For U.K., how is it? You haven't mentioned anything. Was it good? Was it profitable? What's it going to be outlook? Yeah, I think for U.K. How was it this half? You said that it's a little stronger. Yeah. I think for U.K. for the first half, it's strong. It did do well. I think we did see some high demand periods. We saw good margins across both the battery feed as well as the flexible generation fleet. I think if you recall in the investor day, Andy did point out that we are getting our margins, particularly by deploying the battery in a Dynamic Containment market, where the response times are so fast that naturally it gravitate towards our battery feed. We did find an advantage there, and we are able to realize a lot of these benefits in the first half of the U.K. Now, having said that, for U.K. in the first half, we were hit by a fairly significant deferred tax charge. Total close to SGD 19 million of that. That is in relation to the legislated tax change from 19% to 25%, starting from 2023. That has already been decided upon by the tax authorities in U.K. All in all, U.K. did have a strong performance. I think also helped by the fact that impairments were taken in the past, so that a fixed depreciation and all that is also lower. Now going into the second half, I think, across the different markets, generally, what would be volatility. Some elements, which is structural, which is the fact that the battery portfolio did find markets in which they can deploy at better margins, that will probably carry through. Okay. Thank you so much. Just wanted to check on Singapore. Cogen is still in a loss position, I suppose. With the LNG contracts rolling off, what's your long-term plan for the assets in Singapore? Kim Yin, you want to comment on the long-term view in relation to our Sembcorp Cogen assets? Singapore Cogen, the government is moving quite decisively towards greening Singapore, right? There's the Singapore Green Plan, then recently they announced the government's own green initiatives. As part of that, you can see that there are some major shifts. For instance, they want to bring in quite a substantial amount of imports, right? That's a realistic prospect. They're also talking about, of course, maximizing the amount of renewables, right? Of course, gas will continue to play a role. I think, in anticipation of clearer policy directive from government, I think what we can say is that the Cogen business, we are positioning ourselves to meet the government's plans. Let's put it that way. If you look at it in terms of renewables, we're already the largest solar player in Singapore. In terms of imports, of course, we are also actively pursuing it. In terms of gas, our plants still have quite a number of years left in their life to go. I think we are in the good position to serve Singapore, and we're in a good position to address and answer to Singapore's call, to the government's call, in terms of meeting their Singapore Green Plan. Now, if you're asking me specifically whether or not, what are the life extension plans for Sakra or for Cogen, I think, I will defer that discussion for another couple of seasons in anticipation of some clarity from government. Okay. Thank you. I understand. My last question is, your outlook statement sounds quite full of concerns, your outlook statement. Is there anything that is exciting, positive, that you can share with us that will happen in second half? Okay. You can't tell me what you're bidding now, but I'm just saying that anything that we should be excited over. Okay. Kim Yin. Can we talk about that, Eugene? Okay. That's a good one. To give you a sense, Siew Khee, I think in the second half, in general, if you look at what the outlook statement, what we pointed out too, is largely in relation to our conventional asset performance. As you can see, our conventional asset performance in the first half was very strong. Okay? We just want to make sure that the market understands that going into the second half, there will be that tapering in demand. There would be potential pressures, particularly on the spreads and margins because input cost is going up, right? The full cost, right? There is a China Songzao situation, and also the fact that there will be a maintenance shutdown. On the renewables and sustainable solution side of things, I think, going into the second half, a couple of things to take note is that, like I rightly pointed out just now for the U.K., for example, the battery portfolio, we were able to find a higher margins market to deploy into the Dynamic Containment market. Going into the second half also, if you look at solar, right, I think for the first half it was really a story of ramping up in capacity, particularly in Singapore. We saw, for example, the Tengeh assets came out only in June, right? That asset will then continue to contribute into the full half in the second half. For the wind assets for India, we're going into the second half, right? We would see seasonally a strong typical within a year, higher wind within a year on a seasonal basis for Q3 right until Q4, it will pay off again. Also from urban, right, like I also mentioned earlier, from a land sales perspective-We did expect it to catch up in the second half, of course, barring unforeseen circumstances as a result of COVID-19. I think, while a lot of the guidance given were in relation to conventional business side of things, I think on the sustainable solutions side of things, right now, we do not see anything that is a particular concern of that kind of magnitude. I would just categorize it that way. Because if you look at our outlook statement, it did point out the conventional energy suite. We struggle a little bit because some things we don't have anything we can talk about here. I think to be frank, this is plowing season. We are not in harvesting phase in terms of our so-called transition plan. Yeah. A lot of plowing is going into it. The second half, we're still suffering a little bit from the lack of pipeline or the plowing that we didn't do in 2019, 2018. In the meantime, I think keeping fingers crossed, we may be able to, if we find some new projects, and some of those could be announced, then we can talk about them. May come from places like Singapore, may come from places like India. Our CEO of China is just about landing in China this month, we need to give him some time to start delivering. If you look, short answer, to be very honest, is that there's nothing I can tell you now that you couldn't announce. Okay. Ken, just a last question. Your other business is, you mentioned, it has actually recovered. This will remain other business, or would you be looking at divesting this other business to focus on renewable? Well, I think, at this point in time, Siew Khee, the other business segment is not a main contributor. Like I said, we will look at other business as well as a conventional portfolio, parts of the portfolio, with the idea of maximizing value out of it. Okay. To say, we'll definitely be divesting it, I think, I wouldn't say that. I can't right now say that. We will obviously be looking at optimizing and maximizing the value out of the other businesses as well. Sure. Okay. Thank you so much. Thanks, Siew Khee. Thank you. Next in queue, we have Peck Gek. Peck Gek, you've been prompted to unmute yourself. Please proceed to ask your question. Hello. Good afternoon. Could you hear me? Yes, we can hear you, Peck Gek. Thanks. Hi. I have three questions. Yeah. Thanks for explaining the low wind resource. That's very helpful. Actually, that actually began as one of my questions earlier. Do you see similar risk in other renewables, such as solar energy, for example, low solar resource? That's one question. Do you want me to list out all my questions first? Yeah. Perhaps it's better that way. The second question is, could you maybe talk more about the prospects for growth from new economy businesses? The third question is, just now Mr. Wong mentioned, there's hydropower in Chongqing. Not from Sembcorp. Does Sembcorp see any business opportunities in hydropower in Chongqing or other parts of China since the government is trying to decarbonize? These are all my questions. Thank you. Can I clarify, Peck Gek, when you say new economy, what do you have in mind? The renewables and your sustainable. Yeah, as Sembcorp is trying to go from brown to green by 2025 with a large proportion of your portfolio contributing from these, right? Yeah. Sembcorp seems to be at the mercy of the headwinds, I mean, pun intended, from the low wind resource. That is beyond human control. Yeah. Just low wind resource has cut the contribution by 27%. Yeah, you can't be at the mercy. Also, what are any specific, I mean, the prospects for growth from the new economy businesses? Thank you. Thanks, Peck Gek. First, solar resource, we do not see as much variability, right? Solar is, in terms of how much sunlight you get, how much of cloud you get. Cloud does make a big impact, but it is actually, over a long enough period of time, it is quite stable, right? Like, the type of solar panels you put on rooftops in Singapore versus the same solar panel on a rooftop in Australia. Australia gets much better energy generation. Those are quite known. Short answer, we don't see the same variability in solar. For the same reason in wind, because of the variability, then there is the differentiation between better players versus weaker players. That's something I would like to point out. Related to your second question, the variability, because right now even though our portfolio is not small, 1,700 MW and growing, in terms of wind in India, there's still that concentration risk. The short answer in my mind, may not be a absolute, a full bulletproof answer, is really grow out of it. When you have a big enough portfolio and have a more diversification, these variabilities you are in a better position to deal with, right? Because the left-hand side a bit lower, the right-hand side might be a bit higher. You only have two hands, both hands might be down. If you've got 10,000 hands, some of these will be up, some of them will be down. The size matters. Size does matter. Diversification does matter. By nature, they are actually quite spread out. Even then, India as a whole, as I showed you just now, over seven regions, we just have a historical low in 2020. In the longer term, what we hope for, that's why we say, look, we want to grow our portfolio of renewables from 2.6 gigs to 10 gigs. When we get to a bigger size, we hopefully will have much more stable outcome in terms of resource and in terms of financial performance. Right. For instance, the 10 gigs, other than India, it could come from China, it could come from Southeast Asia. Because of that, a low wind year in India might come together in combination with a high wind year in China. I hope that the growth and the size will help portfolio diversification. You asked about hydro in Chongqing. Yes, we wouldn't preclude that possibility, although I want to be frank right now, we don't have a strong lead in that department, right? That's why we are hoping that we work with our partner to see how that business, Songzao, could be restructured when they think about it in the bigger context of the province, in the bigger context of the China portfolio that our partner, because they are part of the SASAC under their own umbrella, they may have other optionalities that they can bring into the picture. That's why, to your colleague's earlier question, we said, look, we want to work with the partner to develop these options. Hydro may well be one of them, being very frank right now, we don't have a very good lead into hydro prospects for Chongqing. Did I miss any, Eugene, did I miss any one point that was asked by Keith? I think you have answered all the key questions. Okay. If you are okay, if that's not clear, let me know. That's clear. Thank you so much. Thank you. We do have some questions from the mailbox. I'll read them out. The question we have is from Mayank from Morgan Stanley. He has three questions. Number one, has SCI been able to refinance any more loans in 1H 2021? Also, any plans to reduce exposure to floating rates for the rest of 2021? How has LNG prices impacted 1H 2021, and how does management see impact if gas prices remain high? Thirdly, we have seen peers grow renewable portfolio in 1H 2021. Can you help us on SCI's progress on decarbonization plans and renewable capacity growth? Eugene, could you deal with, you're in a better position to answer the financing and the floating rate one, then I'll talk about LNG. Okay. Will do. Thanks for that question, Mayank. I think, in the first half of 2021, we were able to raise the SGD 400 million of bonds. Right? Actually, the bonds were quite instrumental in helping us to, well, I would say, pay out some of the RCF, supported CapEx, in relation to our solar in Singapore. Right. We were able to refinance part of those loans with the green bond. We were able to do some of that. Of course, there is still dry powder, from the SGD 400 million of the green bonds for deployment. Now, going into the second half, we will continue to look to refinance. I wouldn't go so far as to give you the timing of our refinancing plans. As you've heard me, Mayank, I've clearly said that we are firm believers that we have the ability to tap the sustainability link as well as the green bond markets. We will increasingly use that to do so to refinance and to clear out the RCFs. Clearly in a refinancing and clearing out our RCFs, which is, as in all RCFs are largely a floating rate interest. We would also be fixing a lot of interest in doing so, because we see that opportunity in the current environment in terming out a debt fixed rates. These are all in our plans, and we will be executing accordingly. In terms of specific timing, because these things are potentially market sensitive, we will not be guiding on any. Okay. Yes. I just want to double-emphasize that this plan, this question from Mayank, and it's a very good question, although, today he decided to be a bit shy and give us question in writing. I just want to double-emphasize that Eugene's priority is to reduce the amount of exposure to floating rate, right? That we are very encouraged by the fact that we are able to tap the market. After, I think it was in June, Eugene- Yes, in June. You issued the SGD 400 million, right? That has given us confidence, that validates our plan that it is available to us. In fact, the rates also, to me, that was a strong validation that we could also not just get availability of capital, but we could actually get it at very attractive rates. That has helped. This will be Eugene's priority. LNG prices are being higher. Very good question. We have got some downstream contracts that have been signed, and we benefit from the prices that are there. If we're able to source LNG at attractive rates, then we actually gain from that. Yes, if LNG prices remain high, gas prices remain high, it will reduce the opportunity for us to drive higher margin from our portfolio. That's the second question. PS grow renewable portfolio. I think to be fair, we did grow our portfolio from, even as we come out from May until now, this is two or three months from the day we told you about our Brown-to-Green Strategy. We have commissioned almost 80 MW in Singapore and Vietnam. We have secured another 100 MW of pipeline. I'm not, to be honest, we're not satisfied about this. We want to run much faster. We recognize that in order to reach our 2025 10 GW target, we're going to have to run faster. We also recognize that, look, initially, this is not an unexpected, a slow start as we mobilized and somewhat hampered a little bit by this COVID-19 situation. For instance, like I said, our CEO, China, Alex, whom you have met during Investor Day, he's only able to get to China this month. Even then, once he lands, he has to self-quarantine. These are little things that knock you back a few weeks here, a few weeks there, a couple of months here, a couple of months there. It's actually very frustrating for us. One thing to tell you that, we are, even though we have shown some limited progress, the 100 MW in terms of pipeline and the commission in terms of the 78 MW of commission capacity, those are way short of what we would like to see. That's why when Siew Khee asked the question just now about what are the price points in the second half, in my mind price point will have to be, we show you that, we show everybody that we could grow our renewables portfolio, and our urban portfolio, in the pace and perhaps exceeding the pace that we told you we were going to do. Again, notwithstanding this, one can expect a slow start. We are not happy with where we are in terms of the limited progress that we have. Although some would say, from May to August, there's at least something that's moving. Suffice to say, we're pushing very hard. Decarbonization plans and renewable capacity group, I thought those are, hopefully, added some color to it. We want to run much faster. We show some limited progress. If anything, again, I'm thinking aloud because Songzao taking the write-down now, in a crooked sense, in an ironic way, it provides a lot more optionality and hopefully will accelerate our decarbonization journey there. Thank you, Kim Yin. We now have more questions from the mailbox. This is from Joseph Tan, an individual investor. He has four questions. I will read them out now. Number 1, given the write-down in UKPR over the last few quarters, why were additional investments into battery technology? Is this a critical technology in your green portfolio? Number 2, exceptional items seem to be not as exceptional anymore given the recurring nature of those expenses impacting results. Given Sembcorp's investment in higher risk emerging markets, are there any lessons learned from those write-downs that management can share? Number 3, given the proliferation of hydrogen and your tie-up with BP in Teesside, U.K., can management share how hydrogen will share your green portfolio? Lastly, on the write-down of your gas oil reserves and inventory at Hin Leong, are there any updates? Okay. Let me deal with the first four and address the first point, and maybe Eugene can help me out with the fifth one. Batteries. U.K. is a market in which we have been in existence for quite a long time through Wilton. Of course, we made an acquisition a few years ago, and then we took the write down. Having done all that, we now, with a proper balance sheet, U.K. actually is a very good market to learn how the influx of intermittent renewable energy into a grid, to learn how to operate in that environment. We have the right assets. Batteries are one of the most important elements today in order to deal with that. I have said this before, just to remind everybody, U.K., in terms of renewables as a percentage of their entire in-stock capacity in the system, they're one of the highest in the world. U.K. has about 45% of their in-stock capacity in the system made up of renewables. Because of that, the intermittent nature of renewables is having to be dealt with, right? Batteries are there to smooth out the peaks and trough and to meet the shortages when suddenly some solar goes offline, some wind goes offline, right? We operate in markets, Southeast Asia, China, India, where we're focusing new investment into. These markets today, almost all of them have this percentage of renewables as part of the portfolio of the in-stock capacity, 20% or less. Eventually, they will get close to that level. I don't know eventually how they would be, but you look at all the aggressive plans to build up renewable infrastructure in Southeast Asia, China, India, they will reach the U.K. level. What is happening in the U.K., and our position there is helping us learn about and develop capabilities, how we can have an advantage and position ourselves better in our priority markets in Southeast Asia, China, and India. Specific to that, batteries is a very important part. In our battery portfolio today, we are one of the largest fleets of batteries in the U.K. system, and they are serving a very critical role, as Eugene Cheng mentioned just now. Normally, in the past, people talk about frequency response, voltage support, and so on. We were doing that. They evolved into this thing called Dynamic Containment that requires a much shorter response time, right? A fraction of what the market used to require. The batteries are serving that need. That hopefully sheds some color as to why we think we want to continue to play our role as the battery, using our battery portfolio and, when it makes sense for us to, in fact, expand that role. All right? It's not just for U.K. and not just in U.K. that we can create good value from. We could also bring that value into our priority markets in Southeast Asia, China, India. That's the first question. Exceptional items, I think, in the case of Songzao, so this season is the Songzao. I think we've taken a fair bit of time explaining why this happened, right? This was a business that we commissioned 2016, if I'm not wrong, right? There was a good reason for its existence. It has some of the cheapest cost of power in Chongqing. Because of that, it still has its role in the system. Right now, without the mine, without the cheap source of coal, it has lost its role. Without repeating that, I think, we have explained, I have at least tried to explain that this is something that is, in that sense, for the lack of a better adjective, it is indeed exceptional, right? It's not every day that you lose a mine supplying your coal plant. I hope that at least in our minds, that is a good reason why we have to take this impairment. In the past seasons, of course, there were also explanations. If it is asking whether or not there will be future items, it is part of managing a business on an ongoing basis, right? I respect your views that how you may or may not have confidence in how we look at these things, that I fully respect. I think, we are doing our level best to manage this professionally and looking at this with a full financial discipline. In terms of emerging markets, what we can learn from it and so on and so forth, as I mentioned just now, the portfolio really is helping us because, for instance, what we learn in the U.K. now is very applicable in emerging markets. For instance, in Singapore, as we try to bring in more renewables and in fact, also more imports. Regulators also, and the think tanks out here are very interested in what we do in the U.K. Right. Between the different markets in our portfolio, we are also learning things that we can cross-pollinate. Our ability to put up rooftop in Singapore, we are again able to bring that capability to Vietnam and put rooftop solar onto our industrial parks' rooftops. I don't know whether that addresses the question that was asked, if it is asking whether or not we should, I don't know whether it sounded like if we were to learn from high-risk emerging markets, are there any lessons we learned from those write-downs? Certainly, we learn from the fact that, in the case of Songzao, what is the reason for this write-down, right? I've explained that, and those, of course, will not be forgotten now. Are those reasons then for us to then give up, throw in the towel and walk away from those markets? Certainly, it's a resounding no. Right? I think there are things that we're also doing well, which we have applied the lessons that we learned, and I've given some examples of those given the breadth of our portfolio where we could draw the learnings from. Increasingly, we are leveraging on our capabilities and the things that we've learned to give ourselves a competitive advantage. Proliferation of hydrogen, and the tie-up with BP. Hydrogen is something that is very good prospects. It is one of those products that has a very high energy density, just like natural gas. Right? Depending on how it is produced, hydrogen can be green. Many people will see hydrogen as the fuel of the future, right, where one could generate hydrogen perhaps through renewables. Big solar farm in Northern Australia capture all the sun energy, solar energy, transform that into hydrogen, bottle it, and ship it to North Asia, to Japan, to Singapore, Korea. It is indeed the fuel of the future. That's why we are working with tying up with various parties, which would include, in this case, you saw the announcement with BP and so on. This, we are exploring, but we are also conscious that there is going to be a timeline before some of these businesses will start to be contributing. Right? Some of this would take time. Because in order for hydrogen to take on the entire supply chain has to be developed. We are looking at how we can position to benefit from that. If you ask me, when we think about our plans moving forward between now and 2025, our immediate strategic plan that we've announced, hydrogen doesn't feature very heavily in it now. Between now and 2030, maybe. Right. How that hydrogen could change our green portfolio, it could become a substitute for natural gas at the right time, for instance. It could become a way to help decarbonize, especially urban centers, high-value urban centers like Singapore and U.K. and London. Those are possibilities. Right. I think we can talk about this, and people have full conferences, half-day conferences talking about hydrogen and its potential. Suffice to say, we are monitoring, and we are watching, and we are participating where it makes sense to us. From the perspective of contribution, as I mentioned, between now and 2025, it doesn't feature. We shouldn't expect hydrogen business to be contributing significantly to our brown-to-green plan between now and 2025. Gas oil reserves on Hin Leong. Eugene, over to you. Yeah. I think in addition to the write-down of gas oil reserves and the inventory at Hin Leong, we have did that comprehensively last year. As of this point in time, there are no further risk of any write-downs in that area. In terms of the proceedings that's happening at Hin Leong, the investigations are still ongoing. We do not have any further elements to update in that respect Thank you, Eugene. Thank you, Kim Yin. We now have time for the last two questions from two participants, and that would be Credit Suisse, who submitted their questions online, as well as Cherlyn Lim, who has raised her hand. I'll start first with the Credit Suisse question from Shaun Tan. He asked three questions. Number one, could you share what we are seeing in Vietnam and China for the appetite for renewable capacity additions? Seems rather modest in 1H. Are we seeing more queries, or could we expect a potential ramp-up in 2H or into 2022? Second question, while we have fully impaired our stake in Chongqing coal power plant, should losses on the coal plant persist, would we be recording these losses in future periods? Thirdly, would it be possible to share the breakdown in net profit by country and for SEIL, please? Okay. I think I'll take the second and third questions first. On the third question, I think in terms of the breakdown of profits by country, I think as explained during the Investor Day, I think the key thing is that we are looking at our business portfolio going forward in terms of pillars of businesses for growth as well as businesses to manage for value. I think it's important for us to keep the market's focus on those pillars. I think in terms of disclosures by country, you will notice in our SGXNet and as well as going forward, we do disclose our revenues as well as our total assets. We do not have the intention to disclose our net profit by country and by specific assets. I guess the focus is really on the key pillars for growth, which is renewables, integrated urban solutions which forms the sustainable solutions segment, as well as the conventional energy, which we would, as stated, manage for value. On the second question, which is in relation to further operating losses for China Songzao. Given that we have fully written off the carrying value and also from the books, we would not be recording any further operating losses in relation to that asset. That I put an answer in the affirmative. On the first question, which in relation to our appetite on growth for Vietnam and China for renewable, which appears a little muted. Kim Yin, what do you think about that? Well, certainly for no lack of appetite. If it was up to Eugene and myself, we would say we want 10 times. We recorded a pipeline of 100 MW and commissioning 78 MW over the last three months, but we would like 10 times that. I think our balance sheet and our funding capacity allows us to do that. For whatever it is worth, I think this in relation to some of the earlier questions from Siew Khee as well as Mayank, how are we tracking in terms of the growth? I'm saying, just repeating it a little bit, that we obviously expected that the start will be a bit slower because we have to mobilize and organize ourselves and we're only beginning to put people on the ground. We expected a slightly slower start. We are also somewhat further slowed down because of COVID-19, really. The lack of ability to travel. For instance, I can't go. I've got many friends in China. I was just communicating with Alexander, my China CEO. As it turned out, many of the number one, number two people in the big Chinese energy companies, these are people that I've worked with in the past. Not being able to go see them and then start leveraging on those relationships is really hurting us. In that sense, first, in terms of appetite, definitely wants to do a lot more. In terms of speed, right now, from May, when we come out to announce our new strategy, the growth, the pace at which we would like to go much faster, we expected a slow start, but it is further slower because of COVID-19, and we're not happy about that. I think, should we expect to see a ramp-up? We definitely want to see a ramp-up. We're definitely working on a ramp-up. I cannot tell you here with forward-looking expectation that, oh, don't worry, there will be a ramp-up. I can tell you that we are working very hard to ramp up. Lisa? Yep, thank you. I think, Sherlyn, if you could unmute yourself and speak and ask your question. Thank you. Sorry, Sherlyn, you had a raised hand. Sherlyn Lim, would you like to unmute yourself and ask your question? Okay, I think the hand seems to have been lowered. Thank you very much, everybody, for your many questions. We thank you once again for joining us. Have a good weekend ahead. For those dialing in from Singapore, wishing you a wonderful National Day ahead too. Thank you. Thank you. Thank you, everyone. Thank you. Bye.