Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities, nor is it calculated to invite any such offer or invitation. In particular, this announcement does not const itute and is not an offer to sell or a solicitation of any offer to buy securities in Hong Kong, the United States or elsewhere. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U. S. Securities Act of 1933. Any public offering of securities to be made in the United States will only be made by means of a prospectus that may be obtained from the issuer or selling security holder and that contains detailed information regarding the issuer a nd management as well as financial information. There is no intention to make a public offering of the securities referred to in this announcement in the United States. Shui On Land Limited 瑞安房地產有限公司* (Incorporated in the Cayman Islands with limited liability) (Stock code: 272) HIGHLIGHTS ➢ Profit recovery: Despite challenging business conditions, the Group recorded core earnings of RMB403 million in the first half of 2026 (“1H 2026”), while profit attributable to shareholders increased to RMB2 23 million. These represented year-on-year growth of 53% and 337% respectively, supported in part by prudent cost management and solid growth in rental income. ➢ Positive momentum in commercial property performance : Total rental and related income (including joint ventures and associates) increased by 4% year -on-year to RMB1,856 million in 1H 2026, driven by solid performance from the established Shanghai portfolio and additional contributions from Xintiandi Dongtaili and KIC Park in Wuhan, both of which opened in 2025. Retail sales and shopper traffic maintained strong growth, recording year-on-year increases of 20% and 17% respectively. ➢ Proactive capital management supporting financial stability: Including the full repayment of USD400 million aggregate principal amount of senior notes in 1H 2026, as of 26 August 2026, the Group has repaid total offshore debt (gross amount) of RMB51.5 billion since 2021. The Group also successfully issued senior notes due 2029 with an aggregate principal amount of USD450 million, demonstrating its solid credit standing amongst investors. As of 30 June 2026, the net gearing ratio had increased slightly to 56%. ➢ Global recognition of sustainable urban development: The Group has been named among TIME's inaugural "World's Most Impactful Companies" list for 2026, making it the first and only Chinese real estate developer to receive this prestigious recognition. The accolade affirms the Group’s Xintiandi community as a global benchmark for urban development. At the project level, Hong Shou Fang earned the 2026 ULI Asia Pacific Award for Excellence for its success in heritage-led regeneration and placemaking. ➢ Special dividend declared: To commemorate the 20th anniversary of the Group’s listing on the Main Board of The Stock Exchange of Hong Kong Limited and having considered the Group’s financial performance during the period, the Board has resolved to declare a special dividend of HKD0.04 per share. Website: www.shuionland.com Announcement of 2026 Interim Results
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Page 2 PERFORMANCE HIGHLIGHTS Note: 1 Including rental income from joint ventures and associates. Year-on-Year 1H 2026 1H 2025 Growth/ (Decline) Total rental and related income (RMB’million)1 1,856 1,781 4% Contracted sales (RMB’million) 2,961 3,473 (15%) Subscribed sales (RMB’million) 464 699 (34%) Selected Financial Information (RMB’million) Revenue 1,711 2,074 (18%) Property sales recognised as revenue 7 145 (95%) Rental and related income (excluding associates and joint ventures) 1,038 965 8% Gross profit 1,167 1,369 (15%) Profit for the period 243 81 200% Profit attributable to shareholders of the Company 223 51 337% Core earnings 403 263 53% Selected Financial Ratios Gross profit margin 68% 66% 2ppt Net profit margin 14% 4% 10ppt Earnings per share (basic), RMB cents 2.78 0.64 337% 30 June 2026 31 December 2025 Changes Selected Balance Sheet Data (RMB’million) Total assets 84,598 82,577 2% Cash and bank deposits 6,142 6,451 (5%) Total indebtedness 27,851 26,294 6% Net debt 21,709 19,843 9% Total equity 38,678 38,230 1% Net gearing (Net debt-to-equity ratio) 56% 52% 4ppt Landbank (GFA, million sq.m.) Total leasable and saleable landbank 5.6 5.4 4% Attributable leasable and saleable landbank 3.4 3.4 -
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Page 3 BUSINESS REVIEW Shui On Land is a leading urban solutions provider, principally engaged in property development, property investment and management across China, anchored by a prime city centre portfolio in Shanghai. As a pioneer in developing and operating sustainable premium urban communities, the Group specialises in urban regeneration, cultural rejuvenation as well as the development and operation of communities that prioritise culture, social engagement and sustainability, providing different urban solutions to the cities in China. Shui On Xintiandi (“SXTD”), a wholly-owned subsidiary of Shui On Land, is a leading investor and manager of premium commercial properties in China with the mission to build vibrant, inclusive and sustainable communities. With businesses spanning the top-tier cities across China including Shanghai, Wuhan, Chongqing, Foshan and Nanjing, it is one of the largest private commercial property managers in Shanghai. As of 30 June 2026, it managed a total portfolio of RMB78.4 billion in office and retail premises in Shanghai, including its flagship project Xintiandi Shikumen Block. KEY ACHIEVEMENTS IN 1H 2026 ➢ The Group recorded contracted sales of RMB2,961 million, comprising residential property sales of RMB2,440 million and commercial property sales of RMB521 million. Total locked-in sales, including those of joint ventures and associates, amounted to RMB19,433 million, and are scheduled for delivery and recognition in the second half of 2026 (“2H 2026”) and beyond. ➢ Our commercial property portfolio delivered robust rental income growth. Including properties held by joint ventures and associates, total rental and related income increased by 4% year-on-year to RMB1,856 million in 1H 2026, with 78% contributed by our Shanghai portfolio, which recorded stronger growth. The increase was further supported by the opening of Xintiandi Dongtaili and KIC Park in 2025. Retail sales and shopper traffic growth maintained strong momentum in 1H 2026, rising by 20% and 17% year-on-year respectively. ➢ In January 2026, the Group announced the acquisition of the first residential land lot in Zhaolou Xintiandi, located in Minhang District, Shanghai, for a consideration of RMB664.3 million. The Group holds a 60% interest in the project, which is positioned as an urban retreat integrating cultural heritage, natural landscapes and modern living. The first residential site has a gross floor area (“GFA”) of approximately 24,000 sq.m., further enriching the Group’s residential saleable resources. ➢ In January and June 2026, the Group fully repaid an aggregate principal amount of USD400 million of senior notes. This demonstrates the Group’s commitment to fulfilling its financial obligations. The repayment was funded by the successful issuance in January and April 2026 of senior notes due 202 9, with an aggregate principal amount of USD450 million, thereby extending the Group’s overall debt maturity profile and providing additional liquidity. ➢ In February 2026, the Group entered into a cooperation agreement with Manulife LP , China Life Trustees Limited, Haikou Vision Co-Creation No. 1 Fund LP (“Dajia LP”) and Dajia GP to restructure the investment holding structure of the 5 Corporate Avenue and Xintiandi Hubindao through the formation of a limited partnership and an equity transfer. The equity transfer was completed in May 2026. The restructuring facilitates onshore financing, resulting in finance cost savings while mitigating foreign exchange risk. ➢ The Group has been named among TIME's inaugural "World's Most Impactful Companies" list for 2026, making it the first and only Chinese real estate developer to receive this prestigious recognition . The accolade serves as a testament to the Group’s long-standing commitment to sustainable development and affirms the Group’s Xintiandi community as a global benchmark for urban development by sustainably balancing historical heritage, future development needs with environmental sustainability. ➢ Our sustainability efforts continued to receive broad external recognition, with Hong Shou Fang earning the prestigious 2026 ULI Asia Pacific Award for Excellence and KIC Corporate Avenue in Wuhan’s Optics Valley achieving WELL Platinum certification, setting a new benchmark for healthy, people-centric office environments in Wuhan. Separately, all owned operational properties within KIC Shanghai transitioned to 100% renewable electricity from January 2026, marking further progress towards our decarbonisation goals.
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Page 4 PROPERTY SALES PERFORMANCE Recognised Property Sales For 1H 2026, total recognised property sales were RMB 748 million (after deduction of applicable taxes), compared to RMB1,193 million in the first half of 202 5 (“1H 2025”), reflecting a lower level of residential completion during the period. The average selling price (“ASP”) (excluding carparks) increased by 48% to RMB27,000 per sq.m. compared to 1H 2025, as a higher proportion of sales was recorded from projects in Shanghai with higher ASPs. The table below summarises by project the recognised property sales (stated after the deduction of applicable taxes) for 1H 2026 and 1H 2025: 1H 2026 1H 2025 Project Sales revenue GFA sold ASP1 Sales revenue GFA sold ASP1 RMB’ million sq.m. RMB per sq.m. RMB’ million sq.m. RMB per sq.m. Riverville 220 1,200 200,000 - - - Ruihong Xintiandi Retail (Lot 1) - - - 44 900 53,300 Retail (Lot 167A) - - - 52 1,000 56,000 Wuhan Xintiandi Residential - - - 14 300 50,000 KIC Wuhan Residential 55 4,400 13,800 306 20,100 16,600 Retail 4 600 7,000 82 6,100 14,700 Office - - - 43 3,700 12,500 Wuhan Changjiang Tiandi Residential 386 17,700 24,200 - - - Lingnan Xintiandi Retail - - - 3 2,400 1,300 Chongqing Tiandi3 Residential2 - - - 506 27,900 24,100 Office (Loft) 52 5,400 10,600 4 400 10,000 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Subtotal 717 29,300 27,000 1,054 62,800 18,300 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Carparks 31 139 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Grand Total 748 29,300 28,000 1,193 62,800 20,800 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Recognised as: - Property sales in revenue of the Group 7 145 - Revenue of associates 61 562 - Revenue of joint ventures 680 486 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Grand Total 748 1,193 = = = = = = = = = = = = = = = = = = = = Notes: 1 The calculation of ASP per sq.m. is based on gross sales revenue before deducting applicable taxes. 2 ASP of Chongqing residential sales is based on net floor area, a common market practice in the region. 3 Chongqing Tiandi partnership portfolio is a project developed by associates of the Group. The Group holds a 19.8% interest in the partne rship portfolio.
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Page 5 Contracted Property Sales, Subscribed Sales, and Locked-in Sales The Group’s contracted property sales for 1H 2026 decreased by 15% to RMB2,961 million compared to 1H 2025, with residential property sales accounting for 8 2% and the remainder contributed by the sale of commercial units. The ASP for residential property sales was RMB50,400 per sq.m. in 1H 2026, compared to RMB71,700 per sq.m. in 1H 2025. The decreases in contracted property sales and in the ASP for residential property sales were partly due to changes in project mix. In 1H 2026, a lower proportion of contracted property sales was generated from higher ASP projects in Shanghai. We target more launches in 2H 2026 and beyond, mainly in Shanghai and Wuhan (subject to construction progress and the timing of government pre-sale approval). As of 30 June 2026: i) total subscribed sales were RMB464 million, with RMB355 million contributed by Riverville in Shanghai. These were subject to formal sales and purchase agreements in the coming months. ii) total locked -in sales of RMB19,43 3 million were recorded and available for delivery to customers and to be recognised in the Group’s financial results in 2H 2026 and beyond. The table below provides an analysis by project of contracted sales (stated before the deduction of applicable taxes) for 1H 2026 and 1H 2025: 1H 2026 1H 2025 Project Contracted amount GFA sold ASP Contracted amount GFA sold ASP RMB’ million sq.m. RMB per sq.m. RMB’ million sq.m. RMB per sq.m. Residential property sales: Shanghai Xintiandi Lakeville VI (Lot 122) 1,028 2,800 367,100 1,930 6,100 316,400 Riverville 249 1,300 191,500 380 1,900 200,000 Wuhan Xintiandi 496 14,300 34,700 15 300 50,000 KIC Wuhan 172 11,400 15,100 266 16,500 16,100 Wuhan Changjiang Tiandi 445 18,600 23,900 543 20,700 26,200 Chongqing Tiandi1, 2 - - - 8 400 24,400 Carparks 50 148 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Subtotal 2,440 48,400 50,400 3,290 45,900 71,700 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Commercial property sales: Shanghai Xintiandi Lakeville VI (Lot 122) 407 2,300 177,000 - - - Ruihong Xintiandi Retail (Lot 1)3 41 1,100 37,300 48 900 53,300 Retail (Lot 167A)4 - - - 56 1,000 56,000 KIC Wuhan 65 7,500 8,700 8 900 8,900 Chongqing Xintiandi Retail - - - 63 11,400 5,500 Chongqing Tiandi1 Office (Loft) 3 300 10,000 - - - Lingnan Xintiandi - - - 3 2,400 1,300 Carparks 5 5 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Subtotal 521 11,200 46,500 183 16,600 11,000 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Grand Total 2,961 59,600 49,700 3,473 62,500 55,500 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Notes: 1 Chongqing Tiandi partnership portfolio is a project developed by associates of the Group. The Group holds a 19.8% interest in the partnership portfolio. 2 ASP of Chongqing residential sales is based on net floor area, a common market practice in the region. 3 The Group holds 49.5% of the property. 4 The Group holds 80% of the property.
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Page 6 Residential GFA Available for Sale and Pre-sale in 2H 2026 The Group has approximately 125,900 sq.m. of residential GFA spanning five projects available for sale and pre-sale in 2H 2026, as summarised below: Project Product Available for sale and pre-sale in 2H 2026 GFA in sq.m. Group’s interests Attributable GFA in sq.m. Lakeville VI (Lot 122)1 Townhouses 6,200 50% 3,100 Riverville Townhouses 10,100 60% 6,100 Nanqiao Tiandi High-rises 13,900 5% 700 KIC Wuhan High-rises 22,500 50% 11,300 Wuhan Changjiang Tiandi High-rises 73,200 50% 36,600 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Total 125,900 57,800 ================= ================ Note: 1 Including saleable commercial villas and townhouses. By way of a cautionary note, the actual market launch dates depend on, and will be affected by, factors such as construction progress, changes in the market environment and government regulations. PROPERTY DEVELOPMENT Residential Development Saleable Resources as of 30 June 2026 Notes: 1 This table represents saleable resources not yet recorded as contracted sales as of 30 June 2026. 2 Including 1,700 sq.m. and 32,000 sq.m. GF A of saleable commercial villas and townhouses in Lakeville VI and Yong Xin Li, respectively. 3 Excluding 5,000 sq.m. and 10,000 sq.m. GF A of underground space in Nanqiao Tiandi and Yong Xin Li, respectively. 4 Figures are preliminary estimates subject to further revision of the project plan. Project Approximate saleable residential GFA Estimated gross saleable resource The Group’s interests Estimated attributable sales sq.m. RMB’ billion RMB’ billion Lakeville VI (Lot 122)2 11,200 3.6 50% 1.8 Riverville 10,100 2.0 60% 1.2 Nanqiao Tiandi3 67,000 2.7 5% 0.1 Zhaolou Xintiandi 24,000 1.5 60% 0.9 Yong Xin Li2,3,4 187,000 37.9 15% 5.7 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Shanghai Subtotal 299,300 47.7 9.7 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Wuhan Changjiang Tiandi4 665,200 24.4 50% 12.2 KIC Wuhan 87,700 1.4 50% 0.7 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Other Cities Subtotal 752,900 25.8 12.9 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Grand Total 1,052,200 73.5 22.6 ================== ================== ==================
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Page 7 Residential Properties under Development Shanghai Xintiandi - Lakeville VI (Lot 122) was acquired in June 2021 with a total GFA of 8 6,000 sq.m. (including 5,000 sq.m. GFA of underground space) for residential use and a GFA of 1 8,000 sq.m. (including 3,200 sq.m. GFA of underground space) for retail. In September 2024, the Group successfully launched the first phase. A total of 108 units, representing a total GFA of 57,000 sq.m., was fully subscribed on the launch day. The Group subsequently launched the pre-sale of villas and townhouses with a GFA of 13,200 sq.m. in 2025 and all villas and townhouses with pre-sale permits were contracted. A total of five units were launched in 1H 2026 . The remaining units have generated significant buyer enthusiasm and are ready for sales contracts to be signed as soon as the pre -sale permits are secured. Handover is scheduled to commence from the fourth quarter of 2027. The Group holds a 50% interest in the development. Riverville - The site was acquired in December 2022 with a total GFA of 30,000 sq.m. (including 8,500 sq.m . GFA of underground space) for residential use. This heritage preservation and development project involves the creation of a high-end, low-density residential community comprising 90 units, with unit sizes ranging from 160 to 410 sq.m. . The project was completed in the second half of 2025. The project saw solid sales momentum in the second quarter of 2026. As of 30 June 2026, nearly two-thirds of units have been contracted and subscribed, with 40 units delivered to buyers . The Group holds a 60% interest in the development. Zhaolou Xintiandi - The acquisition of the first residential site was announced in January 2026, comprising a total GFA of approximately 24,000 sq.m.. The site will be developed into low -density residential products within the urban regeneration project located in Shanghai’s Minhang District. The project has a total planned GFA of approximately 223,000 sq.m., including approximately 150,000 sq.m. of residential GFA. Positioned as an urban retreat, Zhaolou Xintiandi will integrate cultural heritage, natural landscapes and modern living to create a mixed -use community. Construction for the first residential phase is expected to commence in the 2H 2026. Pre -sale is expected in 2027. The overall project is expected to complete from 2032 onwards. The Group holds a 60% interest in the development. Wuhan Xintiandi - The final phase, LaValle (Lot B2) with a total residential GFA of 38,600 sq.m ., was launched in November 2025 and delivered remarkable sales performance. Despite the market downturn, it achieved the highest price and fastest sales pace in its area. All units were fully contracted by the second quarter of 2026, with handover scheduled to commence from the fourth quarter of 2027. KIC Wuhan - The site was acquired in 2017. The residential units in Lots R7 and R8, with a total GFA of 73,000 sq.m, have been fully sold and delivered to buyers as of 30 June 2026. The latest residential phase, KIC Wuhan • The Moment (Lot R2) has a total GFA of 32,300 sq.m.. In late June, a total GFA of 14,800 sq.m. was launched, with approximately 77% of units contracted and subscribed by the month end. Handover is scheduled to commence from the third quarter of 2027. The Group holds a 50% interest in the development. Wuhan Changjiang Tiandi - The site was originally acquired in December 2021. According to the latest masterplan, the site has an es timated GFA of 761,000 sq.m. for residential use. Lot B4, with a total residential GFA of 135,000 sq.m., started pre-sale in September 2023 and was completed in the second half of 2025. As of 30 June 2026, a total aboveground GFA of 96,700 sq.m., involving 632 units has been contracted, of which 613 units have been delivered to buyers . The Group holds a 50% interest in the development.
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Page 8 Commercial Properties under Development and for Future Development as of 30 June 2026 Office GFA Retail GFA Total GFA The Group’s interests Attributable GFA Project sq.m. sq.m. sq.m. sq.m. Xintiandi Liuheli (Lot 122) - 11,000 11,000 50% 5,500 Yong Xin Li - 23,000 23,000 15% 3,500 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Shanghai Subtotal - 34,000 34,000 9,000 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Wuhan Xintiandi 70,000 3,000 73,000 100% 73,000 KIC Wuhan 187,000 281,000 468,000 50% 234,000 Wuhan Changjiang Tiandi - 126,000 126,000 50% 63,000 Lingnan Xintiandi 450,000 107,000+80,0001 637,000 100% 637,000 Chongqing Tiandi 228,000 65,000+25,0001 318,000 19.80% 63,000 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Other Cities Subtotal 935,000 687,000 1,622,000 1,070,000 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Grand Total 935,000 721,000 1,656,000 1,079,000 ================== ============================ ================== ================== Note: 1 Hotel use. LANDBANK As of 30 June 2026, the Group’s landbank was 7.6 million sq.m. (comprising 5.6 million sq.m. of leasable and saleable area and 2.0 million sq.m . for clubhouses, car parking spaces and other facilities) spanning 18 development projects located in the prime areas of five major cities in China, namely Shanghai, Nanjing, Wuhan, Foshan and Chongqing. The leasable and saleable GFA attributable to the Group was 3.4 million sq.m.. Of the total leasable and saleable GFA of 5.6 million sq.m., approximately 2.8 million sq.m. was completed and held for sale and/or investment, approximately 0.8 million sq.m. was under development and the remaining 2.0 million sq.m. was held for future development.
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Page 9 The Group’s total landbank as of 30 June 2026, including that of its joint ventures and associates, is summarised below: Approximate/Estimated leasable and saleable GFA Project Residential Office Retail Hotel/ serviced apartments Subtotal Clubhouse, carpark, and other facilities Total sq.m. sq.m. sq.m. sq.m. sq.m. sq.m. sq.m. Completed properties: Shanghai Xintiandi1 - 277,000 213,000 - 490,000 198,000 688,000 Ruihong Xintiandi2 - 145,000 296,000 - 441,000 264,000 705,000 KIC Shanghai3 - 164,000 67,000 22,000 253,000 142,000 395,000 Hongqiao Xintiandi - 90,000 173,000 - 263,000 72,000 335,000 Panlong Xintiandi - - 42,000 - 42,000 75,000 117,000 Riverville 16,000 - - - 16,000 19,000 35,000 Hong Shou Fang - 48,000 14,000 - 62,000 21,000 83,000 Inno KIC - 41,000 4,000 - 45,000 18,000 63,000 Wuhan Xintiandi - 165,000 238,000 - 403,000 285,000 688,000 KIC Wuhan - 94,000 56,000 - 150,000 203,000 353,000 Wuhan Changjiang Tiandi 43,000 - - - 43,000 42,000 85,000 Lingnan Xintiandi - 16,000 157,000 43,000 216,000 55,000 271,000 Chongqing Xintiandi4 - - 117,000 - 117,000 137,000 254,000 Chongqing Tiandi9 - 3,000 98,000 - 101,000 112,000 213,000 Nanjing IFC - 72,000 28,000 - 100,000 18,000 118,000 Subtotal 59,000 1,115,000 1,503,000 65,000 2,742,000 1,661,000 4,403,000 Properties under development: Shanghai Xintiandi5 86,000 - 18,000 - 104,000 55,000 159,000 Nanqiao Tiandi6 72,000 - - - 72,000 40,000 112,000 Yong Xin Li7 165,000 - 55,000 - 220,000 150,000 370,000 Zhaolou Xintiandi8 24,000 - - - 24,000 18,000 42,000 Wuhan Xintiandi 39,000 - - - 39,000 16,000 55,000 KIC Wuhan 32,000 - - - 32,000 17,000 49,000 Wuhan Changjiang Tiandi 85,000 - 1,000 - 86,000 41,000 127,000 Chongqing Tiandi9 - 228,000 - 25,000 253,000 17,000 270,000 Subtotal 503,000 228,000 74,000 25,000 830,000 354,000 1,184,000 Properties for future development: Wuhan Xintiandi - 70,000 3,000 - 73,000 - 73,000 KIC Wuhan 65,000 187,000 281,000 - 533,000 - 533,000 Wuhan Changjiang Tiandi 542,000 - 125,000 - 667,000 - 667,000 Lingnan Xintiandi 28,000 450,000 107,000 80,000 665,000 - 665,000 Chongqing Tiandi9 - - 65,000 - 65,000 - 65,000 Subtotal 635,000 707,000 581,000 80,000 2,003,000 - 2,003,000 Total landbank GFA 1,197,000 2,050,000 2,158,000 170,000 5,575,000 2,015,000 7,590,000 Notes: 1 The Group has 99.00% interests in all the remaining lots, except for Xintiandi Shikumen Block, Shui On Plaza including Xintiandi Plaza, 15 th floor of Shui On Plaza, 5 Corporate Avenue and Xintiandi Hubindao, CPIC Xintiandi Commercial Centre and Lot 116, in which the Group has effective interests of 100.00%, 80.00%, 100.00%, 44.55%, 25.00%, and 98.00%, respectively. 2 The Group has 99.00% effective interests in all the remaining lots, except for The Palette, Hall of the Stars, Hall of the Moon, Parkview, Hall of the Sun and Ruihong Corporate Avenue, in which the Group has effective interests of 49.50% and Lot 167A, in which the Group has an effective interest of 80 .00%. 3 The Group has an effective interest of 46.33% in the project. 4 The Group has an effective interest of 99.00%. 5 The Group has a 50.00% interest in Lakeville VI and Xintiandi Liuheli (Lot 122). 6 The Group has a 5.00% interest in the project. 7 The Group has a 15% interest in the project. 8 The Group has a 60% interest in the project. 9 The Group has an effective interest of 19.80%.
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Page 10 INVESTMENT PROPERTIES Valuation of Investment Properties As of 30 June 2026, the carrying value of the Group’s investment properties at valuation (excluding hotels for operation and self-use properties), as valued by independent valuer, was RMB96,970 million with a total GFA of 2,666,000 sq.m.. The properties located in Shanghai contributed 80% of the carrying value with the remainder attributable to properties in other cities in China. The Group recorded a decrease of RMB 381 million in the fair value of the investment properties (including those held by joint ventures and associates) in 1H 2026, representing 0.4% of the total carrying value as of 30 June 2026. The decrease reflected prevailing market conditions, particularly in the subdued office market, which continued to experience a decline in rental reversions amidst oversupply and downward pressure on market rents. The table below summarises the carrying value of the Group’s investment properties at valuation as of 30 June 2026, together with the change in fair value for 1H 2026: Portfolio Leasable GFA Increase /(decrease) in fair value for 1H 2026 Carrying value as of 30 June 2026 Fair value gain/(loss) to carrying value Attributable carrying value to the Group sq.m. RMB’million RMB’million % RMB’million Completed investment properties at valuation Shanghai 1,589,000 (234) 77,831 (0.3%) 43,375 Office 780,000 (298) 41,885 (0.7%) 19,395 Retail 809,000 64 33,619 0.2% 22,629 Carparks - - 2,327 - 1,351 Other Cities 823,000 (147) 17,379 (0.8%) 17,007 ───── ───── ───── ───── Subtotal 2,412,000 1 (381) 95,210 (0.4%) 60,382 ───── ───── ───── ───── Investment properties under development at valuation Subtotal 254,000 - 1,760 - 1,760 ───── ───── ───── ───── Grand Total 2,666,000 (381) 96,970 (0.4%) 62,142 ============== ============= ============= ============= Note: 1 Self-use properties (total GF A 11,000 sq.m. with carrying value of RMB619 million) are classified as property and equipment in the consolidated statement of financial position, and the respective leasable GF A and carrying value are excluded from this table.
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Page 11 SXTD: The Group’s Flagship Commercial Business Unit SXTD invests in and manages premium commercial properties in China. With over two decades of experience in investing and operating in China, we have built landmark communities over the years including our flagship project Xintiandi Shikumen Block. With hig h-quality services and constant innovation, we aim to build landmark communities that combine culture, heritage and lifestyle. Commercial Properties Portfolio Our retail portfolio continued to achieve a high average occupancy rate of 94% as of 30 June 2026. In 1H 2026, overall sales in our portfolio increased by 20%, and shopper traffic rose by 17%, driven by both local and international visitors drawn to the high -quality community offerings and the vibrant lifestyle experiences delivered by our Xintiandi communities. Meanwhile, amidst ongoing shifts in consumption patterns, the portfolio recorded an overall negative rental reversion. Demand in office markets in core cities has shown early signs of recovery, although competition remains intense. Against this backdrop, our mature Shanghai office portfolio achieved a high occupancy rate of 94% as of 30 June 2026, an increase from 93% as of 31 December 2025, supported by a refined leasing strategy and the high quality of our assets and services. This compared to the overall Grade A office occupancy rate of 76.5% in Shanghai reported by Jones Lang LaSalle (“JLL”). Rental reversion remained negative as of 30 June 2026, reflecting ongoing market pressure on rents, although the pace of decline has moderated. Rental and related income for the Group increased by 8% to RMB1,038 million in 1H 2026 compared to RMB965 million in 1H 2025. The increase partly reflected improved occupancy rates. Including the rental and related income from joint venture and associate properties, the total rental and related income grew 4% year-on-year to RMB1,856 million in 1H 2026, driven by solid performance from the established Shanghai portfolio and additional contributions from Xintiandi Dongtaili in Shanghai and KIC Park in Wuhan, both of which opened in the second half of 2025. Of the total rental and related income, 78% was contributed by the portfolio in Shanghai, with the remainder coming from other cities in China. Meanwhile, the retail portfolio accounted for 62% of the total rental income in 1H 2026, excluding rental-related income. Rental and related income 1H 2026 1H 2025 Change RMB’million RMB’million Shanghai 1,456 1,384 5% Other cities 400 397 1% ───── ───── Total 1,856 1,781 4% ============ ============
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Page 12 The table below summarises the occupancy rate of the Group’s investment properties: Project Product Leasable GFA Occupancy rate sq.m. 30 June 2026 Shanghai Xintiandi Xintiandi Shikumen Block Office/ Retail 54,000 96% Xintiandi Style Retail 26,000 96% Shui On Plaza and Xintiandi Plaza Office / Retail 53,000 96% 5 Corporate Avenue, Xintiandi Hubindao Office / Retail 79,000 97% CPIC Xintiandi Commercial Centre Office / Retail 271,000 66% Ruihong Xintiandi Office / Retail 441,000 88% Hongqiao Xintiandi Office/ Retail 263,000 93% KIC Shanghai Office/ Retail 253,000 96% Inno KIC Office/ Retail 45,000 89% Panlong Xintiandi Retail 42,000 99% Hong Shou Fang Office/ Retail 62,000 96% Wuhan Xintiandi Office/ Retail 401,000 75% Lingnan Xintiandi Office/ Retail 158,000 96% Chongqing Xintiandi Retail 117,000 97% Nanjing IFC Office/Retail 100,000 82% Wuhan KIC Park Retail 47,000 90% ───────── Grand Total 2,412,0001 ============ Note: 1 A total GF A of 11,000 sq.m. located at Shanghai Shui On Plaza, Wuhan Xintiandi and Lingnan Xintiandi was occupied by the Group and was excluded from the above table.
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Page 13 Real Estate Asset Management To complement our Asset-Light strategy, we also work as a trusted partner to other asset owners and provide real estate asset management services for commercial projects. The real estate asset management services include but are not limited to feasibility studies, tenancy positioning, leasing, marketing and branding, as well as account and finance management. As of 30 June 2026, our asset management projects include 5 Corporate Avenue , Xintiandi Hubindao, commercial properties in Ruihong Xintiandi, CPIC Xintiandi Commercial Centre, Hong Shou Fang, KIC Shanghai and Wuhan KIC Park. The total valuation of these projects amounted to RMB54.6 billion as of 30 June 2026, with a total leasable GFA of 1,153,000 sq.m.. We will continue to extend our services and look for more opportunities to work with other organisations, utilising our experience and knowledge to build sustainable premium communities. Our Projects and Latest Updates Shanghai Xintiandi: Shanghai Xintiandi is a large -scale, flagship community project in the heart of Shanghai. It was developed to preserve the region’s historical architecture while transforming the area to meet urban development needs. Located in Huangpu District, the project is connected by Shanghai Metro Lines 1, 8, 10, 13 and 14, fronting the popular Huaihai Middle Road business district. The Group began the multi -phase development of Shanghai Xintiandi in 1996, comprising various commercial, office and residential plots, including Xintiandi Shikumen Block, Xintiandi Style, Shui On Plaza, Xintiandi Plaza, 5 Corporate Avenue, Xintiandi Hubindao and CPIC Xintiandi Commercial Centre. Our flagship project, Xintiandi Shikumen Block, is at the heart of the Shanghai Xintiandi. Featuring the preservation of cultural heritage, Xintiandi Shikumen Block has been successfully established as an iconic landmark that offers a carefully blended e xperience of old Shanghai culture and modern lifestyles that has made the community a premier lifestyle destination for both residents of Shanghai and visitors. Not only does Xintiandi Shikumen Block continue to attract consumers and new tenants from across the world, it also serves as a popular venue for hosting international fe stivals and local events, such as Shanghai Fashion Week and the XINTIANDI Performing Arts Festival. The CPIC Xintiandi Commercial Centre is a commercial complex with three towers of premium Grade A office buildings and a street style all -weather shopping and leisure/entertainment area. The project includes three lots, namely Lot 123, Lot 124 and Lot 132, with a total GFA of 271,000 sq.m.. Lot 132 (CPIC Life Tower), with a total GFA of 30,000 sq.m. of office, was completed and handed over to CPIC in 2023. Lot 123 (Tower 2) and Lot 124 (Tower 1) were completed in 2024. Xintiandi Dongtaili, the retail podium of Lot 123 and Lot 124, officially opened for operations in December 2025. This innovative space redefines urban living with 82,000 sq.m. of open-air shops, offering a rich mix of dining, art, and lifestyle experiences. By celebrating local culture and hosting cultural events, Xintiandi Dongtaili aims to revive the city’s vibrancy and become a lively urban hub . Rental and related income at Shanghai Xintiandi grew strongly, up 1 6% year- on-year in 1H 2026, driven by the strong performance of Xintiandi Shikumen Block and Xintiandi Style, together with the rental contribution from Xintiandi Dongtaili. Hongqiao Xintiandi: Located in the heart of the Hongqiao central business district (“CBD”), Hongqiao Xintiandi is the only commercial complex that is directly connected to the Hongqiao Transportation Hub, offering convenient access to major transportation nodes such as the Shanghai High-Speed Rail Terminal, Shanghai Hongqiao International Airport, five underground metro lines, the long-haul bus station and the future maglev terminal. Hongqiao Xintiandi features four office towers, a Xintiandi commercial zone, a shopping facility and a performance and exhibition centre. Rental and related income declined by 1% year-on-year in 1H 2026, reflecting continued decline in the office re ntal reversion despite the higher occupancy rate. Strategically located in Hongqiao CBD, the gateway to the Yangtze River Delta region, Hongqiao Xintiandi has attracted regional headquarters and branch offices of leading companies from various industries, including Fortune 500 companies. Ruihong Xintiandi: Ruihong Xintiandi is a mixed -use, large -scale masterplan community project covering retail, office, entertainment, cultural and residential space. The property is located in the Hongkou District of Shanghai, in close proximity to several leading universities and the CBD. It enjoys excellent connectivity to Lujiazui CBD and Pudong commercial district via four metro lines (Metro Lines 4, 8, 10 and 12) and two tunnels, Xinjian Road Tunnel and Dalian Road Tunnel. Ruihong Xintiandi comprises various commercial and office properties, including the Hall of the Moon, the Hall of the Stars, The Palette, the Hall of the Sun and Ruihong Corporate Avenue. Rental and related income rose by 4% year-on-year in 1H 2026, supported by the project’s repositioning as a fashionable urban living destination.
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Page 14 Panlong Xintiandi: Panlong Xintiandi comprises residential sites, culture and recreation areas, restaurant and hotel development, as well as greenery and open space for the public. The project is located in Shanghai’s Qingpu District, part of the Hongqiao CBD. It is next to Panlong Station on Shanghai Metro Line 17 and just two train stops or 3 km away from the Hongqiao Transportation Hub. The retail facilities were opened at the end of April 2023, and it is one of Shanghai’s most successful urban village transformations. The project has welcomed over 71 million visitors since opening. Panlong Xintiandi has been widely recognised with multiple industry accolades. The project earned recognition as a national-level tourism and leisure block from the Ministry of Culture and Tourism in 2025. Panlong Xintiandi has become a new cultural landmark for the Yangtze River Delta area and a new destination combining cultural heritage, modern lifestyle and community engagement. Rental and related income increased by 2% year-on-year in 1H 2026, supported by a higher occupancy rate and positive rental reversion. KIC Shanghai: KIC Shanghai is a mixed-use technology innovation and knowledge community strategically located in Wujiaochang in Yangpu District, in the immediate vicinity of major universities and colleges, including Fudan University, Shanghai University of Finance and Economics and Tongji University. The project combines office space with research and development, education, training, investment and incubator services, tailored to the needs of tenants in knowledge-based industries. In addition to office space and services, KIC comprises retail and mixed -use areas, including University Avenue and the KIC Village Zone, which offe r the community a wide selection of gourmet cuisine, coffee shops, bookstores, galleries and creative retail stores. Through the KIC project, we have facilitated the transformation of the Yangpu District from an industrial and manufacturing area into a com munity for knowledge and innovation. The KIC project has thus been regarded as a landmark of innovation and entrepreneurship in Shanghai. In November 2024, the Group entered into a cooperation agreement with the existing shareholders of KIC Shanghai to restructure its investment holding structure through the formation of a limited partnership and an equity transfer. Following the equity transfer completion in December 2024, the Group holds an effective interest of 46.33% in the project. In 1H 2026, rental a nd related income was 13% lower than in 1H 2025 as the impact of continued decline in the office rental reversion more than offset the benefit of a higher occupancy rate. Inno KIC: Located adjacent to KIC Shanghai in the Xinjiangwan CBD of Yangpu District, I nno KIC is one of the first projects created by SHUI ON WORKX, our multiform office solution aiming to provide a complete life-cycle workspace solution for start-ups as well as small -to-medium and large enterprises. The complex introduces a new business socia l platform that integrates work, entrepreneurship, learning and leisure, with the aim of delivering flexible business solutions and providing a diversified working ecosystem that promotes the growth and development of enterprises. In 1H 2026, rental and related income decreased by 10% year-on-year, driven by lower occupancy. Hong Shou Fang: The Hong Shou Fang project is an urban regeneration project located at the gateway of Changshou Road, the most popular commercial street in Shanghai’s Putuo District. The site is only 2 km from Nanjing West Road, one of the most prominent CBDs in Shanghai, and is directly linked to Changshou Road Station, the interchange station of Metro Lines 7 and 13. The project encompasses a commercial complex with 48,000 sq.m. GFA of Grade A office and 14,000 sq.m. of entertainment, restaurants and retail area achieved through the restoration of the exis ting historic buildings. Since its opening in September 2023, Hong Shou Fang has established itself as a local landmark, marking a significant milestone in our neighbourhood community product line -up. The project company has become a joint venture project after the completion of the disposal of 65% equity interest in January 2024. Rental and related income remained stable compared to 1H 2025.
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Page 15 Wuhan Xintiandi: Wuhan Xintiandi is a large -scale, mixed -use community project comprising office, retail, food and beverage and entertainment facilities. It sits in the city centre of Hankou District, occupying a prime location on the Yangtze River waterfront and providing unparalleled views of the Yangtze River and the scenic Jiangtan Park. With a tenant mix and food and beverage offerings that focus on young premium customers, Wuhan Xintiandi has become a retail and social destination in Wuhan that offers lifestyle experiences to this clientele. The project also includes 1 Corporate Avenue, a high -rise Grade A office building spanning 73 stories completed in September 2021. Rental and related income at Wuhan Xintiandi remained stable year-on-year in 1H 2026. Wuhan KIC Park: Located within KIC Wuhan and directly connected to Metro Line 11, KIC Park is the first commercial park located in a knowledge community in Wuhan, with a total retail GFA of 47,000 sq.m.. Set within generous green space, KIC Park integrates commercial space with nature and features a brand mix that targets young professionals and innovators in Optics Valley, strengthening the positioning of KIC Wuhan as a social and entertainment destination in the area. Following the opening in September 2025, KIC Park made its first full-period contribution to the Group’s rental income in 1H 2026. Occupancy remained high at 90% as of 30 June 2026. Lingnan Xintiandi: Lingnan Xintiandi is a large-scale, integrated urban retreat community comprising retail, office, hotel, cultural facilities and residential complexes. Strategically located in the old town centre of the central Chancheng District, the project enjoys good connectivity, being the location of two stations on the Guangzhou-Foshan metro line. The project preserves traditional Lingnan -style architecture , while blending cosmopolitan elements and modern facilities into a lifestyle destination, offering the city’s residents and tourists a wide selection of dining, retail, leisure and cultural experiences. Rental and related income recorded a slight year-on-year decline of 2% in 1H 2026. In August 2025, the Group completed the transfer of its 100% interest in Fo Shan Shui On Property Development Co., Ltd. and Fo Shan An Ying Property Co., Ltd. (collectively, “Foshan Project Companies ”) to Qingdao Ruijian Private Equity Investment Fund Partnership (Limited Partnership), a fund in which the Group holds a 57.63% of the partnership interest. Chongqing Xintiandi: Chongqing Xintiandi is situated on the south bank of the Jialing River in the Yuzhong District of Chongqing, one of the most populous cities in the world and the leading industrial and commercial hub of southwest China. It has a unique landscape and creates a commercial and residential community around a man-made lake within the surrounding hillsides. The project achieved a high occupancy rate of 97% as of 30 June 2026. It offers a wide range of retail, food and beverages as well as entertainment facilities that target a young premium clientele, while serving office tenants and residents in the neighbourhood. Nanjing IFC: Nanjing IFC is a mixed-use Grade A landmark property in Nanjing. It is predominantly an office building occupied by a diverse mix of high-quality tenants, including MetLife and KFC. Rental and related income was 6% lower year-on-year in 1H 2026 due to lower occupancy.
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Page 16 STRATEGY GOING FORWARD Since 2016, the Group has pursued an Asset-Light strategy to propel its growth in a more effective and productive way. Under this approach, the Group has been progressively introducing financial investors for its mature commercial assets to recycle capital. We also undertake new development projects through partnerships in which we hold a minority stake, while providing professional management services for the development, sales and marketing, asset management and operations of the projects. Through this strategy, the Group can fully leverage and capitalise on its brands, including the community brand, “Xintiandi” and the luxury residential brand, “Lakeville”, as well as on its expertise in project development and asset management . This is enabling us to expand the business amidst a highly volatile market, while creating new revenue streams from various management fee income sources. As of 30 June 2026, the Group had participated in four Asset-Light projects in Shanghai, which are expected to support the Group’s growth over the coming years. The table below summarises the details of these projects: Note: 1 Including 32,000 sq.m. GF A of saleable commercial villas and townhouses . Yong Nian Li: Yong Nian Li is an urban renewal project located in the heart of Shanghai’s Huangpu District. Comprising three plots, the development will feature super high-rise and high-rise residences, heritage-inspired villas and a lane-style retail area and benefit from its location within the Greater Xintiandi Community. The project encompasses approximately 105,000 sq.m. of residential GFA and 5 0,000 sq.m. of commercial GFA. Construction is expected to commence in the fourth quarter of 2026. Completion is expected in 203 2 and pre-sale after 2027. The project is being jointly developed by Shanghai Yongye Enterprise (Group) Co., Ltd, holding a 98% interest, and China Overseas Group, holding a 2% interest. Entrusted by its partners, the Group will provide full -cycle professional management services spanning strategic positioning, development management, marketing and sales, asset management and operations. Project Product Estimated residential GFA Estimated commercial GFA Estimated project periods The Group’s interests sq.m. sq.m. Yong Nian Li, Shanghai Mixed-use development 105,000 50,000 2025 - 2032 - Nanqiao Tiandi, Shanghai Mixed-use development 325,000 98,000 2025 - 2031 5% Yong Xin Li, Shanghai Mixed-use development 165,000 55,0001 2025 - 2031 15% Sanlin Xintiandi, Shanghai Mixed-use development 633,000 92,000 2026 - 2035 13.26% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - ───────────── ── ─────────────── Grand total 1,228,000 295,000 ================== ==================
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Page 17 Nanqiao Tiandi: A collaboration with the Shanghai Fengxian District Government, Nanqiao Tiandi is an urban village renovation project located in the heart of the old Nanqiao town in the Fengxian District. The project aims to support Fengxian ’s vision to become an innovation and service hub in southern Shanghai. Comprising a total planned GFA of approximately 423,000 sq.m., including around 325,000 sq.m. of residential GFA and 98, 000 sq.m. of commercial and ancillary facilities, the project is scheduled for phased development, currently expected to run through to 2031. In August 2024, the Group secured a 5% interest in the project and has been entrusted to provide full -cycle development and asset management services. Since April 2025, the project company has acquired land lots with a total GFA of approximately 71,800 sq.m. (including 4,800 sq.m. GFA of underground space) for residential and cultural uses. Construction work is in progress. Pre -sale for the first phase of residential development, with a total GFA of 13, 900 sq.m., is expected to commence in late 2026 or early 2027. Yong Xin Li: This is a mixed-use urban regeneration project located to the east of Xint iandi Shikumen Block in Shanghai’s Huangpu District. It will offer premium residences under the Lakeville brand and commercial space operated under the “Xintiandi” brand, strengthening the Group’s presence within the Greater Xintiandi Community. The project comprises a total planned GFA of approximately 2 20,000 sq.m., including 1 65,000 sq.m. of residential GFA (including 9,800 sq.m. GFA of underground space) and 5 5,000 sq.m. of commercial GFA. Construction commenced in the second quarter of 2026. Completion is expected in 2031 and pre-sale in 2027. In June 2025, the Group formed a new 30/70 joint venture with Tian An China Investments Company Limited to participate in the project. The capital commitment in relation to this joint venture to be borne by the Group is expected to be no more than RMB1,047 million. This joint venture succeeded in acquiring a 50% equity interest in a company owned by Shanghai Yongye Enterprise (Group) Co., Ltd. which holds three land parcels for the project. The Group holds a 15% effective interest in the project. Sanlin Xintiandi: Sanlin Xintiandi is an urban village renewal project located at Sanlin in the Pudong New Area of Shanghai, enjoying proximity to the Qiantan CBD and the Sanlin Riverside. The project will expand the Group’s urban renewal product line into one of Shanghai ’s most dynamic districts. The project has a planned GFA of approximately 725,000 sq.m., comprising 633,000 sq.m. of residential GFA and 92,000 sq.m. of commercial GFA. The overall development period is estimated to span from 2026 to 2035. In November 2025, the Group entered into an agreement with Shanghai Lujiazui (Group) Co., Ltd., Shanghai Pudong New Area Real Estate (Group) Co., Ltd. and Shanghai Sanlin Asset Management (Group) Co., Ltd. for carrying out the project. The Group’s effective funding commitment for the project amounts to approximately RMB1,215 million. The Group holds a 13.26% effective interest in the project. Looking ahead, we will continue to pursue business expansion in a prudent and disciplined manner through our Asset - Light strategy while maintaining liquidity and financial stability. Our investment focus will remain on opportunities in first-tier and stron g second-tier cities in the Yangtze River Delta and Greater Bay Area, where we can leverage our expertise in urban regeneration, with Shanghai continuing to serve as our strongest foothold. Our long -term goal is to achieve a “best in class” leadership position in selective markets and across the various products we create, delivering sustainable profit growth through a strategy balanced between property development and asset management.
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Page 18 FINANCIAL REVIEW The Group’s revenue for the six months ended 30 June 2026 (“1H 2026”) was RMB1,711 million (for the six months ended 30 June 2025 (“1H 2025”): RMB2,074 million). There was no new residential completion among the Group ’s consolidated projects in the period under review. Property sales in 1H 202 6 comprised sales of carpark inventories at different projects, and amounted to RMB7 million (1H 2025: RMB145 million). Under our Asset-Light strategy, property sales are increasingly from joint ventures and associates. Rental and related income from property investment for 1H 202 6 increased by 8% to RMB 1,038 million (1H 202 5: RMB965 million). Of this, RMB652 million (1H 2025: RMB637 million) was contributed by the Group’s Shanghai properties, accounting for 63% of the total and representing a 2% year-on-year growth, supported by improved occupancy rates. The rental and related income from the Group’s properties outside Shanghai advanced to RMB 386 million in 1H 2026 (1H 2025: RMB328 million), mainly from the consolidation of a mixed used project. Property management income for 1H 2026 grew moderately to RMB291 million (1H 2025: RMB281 million), of which RMB209 million (1H 2025: RMB200 million) was from services rendered to commercial properties, with the remaining income of RMB82 million (1H 2025: RMB81 million) attributable to residential properties. Construction income generated by the construction business decreased to RMB97 million in 1H 202 6 (1H 202 5: RMB286 million). The decrease was due mainly to lower construction service income from the Group's joint ventures, including Riverville, which was completed in the second half of 2025. Other revenue, primarily comprising asset management fee income, management services fee income from Asset-Light projects and hotel operation income, declined to RMB 278 million in 1H 202 6 (1H 202 5: RMB 397 million). Management services fee income is recognised and collected in accordance with the development progress of Asset-Light projects. Gross profit in 1H 2026 fell 15% to RMB1,167 million (1H 2025: RMB1,369 million) in line with the lower Group’s revenue, while gross profit margin rose slightly to 68% (1H 2025: 66%). Selling and marketing expenses in 1H 2026 decreased 19% to RMB43 million (1H 2025: RMB53 million), with lower sales commission incurred. General and administrative expenses , which comprise staff costs, depreciation charges and advisory costs incurred, remained stable at RMB381 million in 1H 2026 (1H 2025: RMB382 million). Decrease in the fair value of investment properties totalled RMB110 million in 1H 2026 (1H 2025: RMB133 million). The investment property portfolio in Shanghai recorded a valuation gain of RMB38 million (1H 2025: RMB40 million), which was offset by a revaluation loss of RMB 148 million (1H 2025: RMB173 million) in the investment property portfolio outside Shanghai. Net other income recorded a net gain of RMB472 million in 1H 2026 (1H 2025: net gain of RMB173 million), comprised of: 1H 2026 1H 2025 RMB’million RMB’million Interest income from banks 26 31 Interest income from loan to a joint venture 15 14 Government grants 4 4 Gain on derecognition of financial liabilities - 38 Net loss on disposal of investment properties - (10) Others * 427 96 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total 472 173 = = = = = = = = = = = = ============ * Included a gain of RMB356 million from purchase of interest in subsidiaries during six months ended 30 June 2026.
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Page 19 Share of results of associates and joint ventures recorded a net loss of RMB 34 million in 1H 2026 (1H 2025: net loss of RMB 73 million). The net loss arising from commercial properties totalled RMB 44 million (1H 202 5: net loss of RMB105 million) which included a net revaluation loss of RMB68 million (1H 2025: net loss of RMB76 million). The loss was partially offset by the gains from property sales of RMB10 million (1H 2025: RMB32 million) which were mainly from Riverville. In comparison, net gains from residential projects in 1H 202 5 were mainly from KIC Wuhan amounting to RMB31 million. Finance costs, inclusive of exchange differences , totalled RMB752 million in 1H 2026 (1H 2025: RMB888 million), comprising finance costs of RMB 761 million (1H 2025: RMB801 million) and a net exchange gain of RMB9 million (1H 2025: net exchange loss of RMB8 7 million). Total interest costs receded by 4% to RMB 793 million (1H 202 5: RMB823 million) attributable to lower average cost of debt of 5.38% in 1H 202 6 (1H 202 5: 5. 67%). Of the abovementioned interest costs, 4% (1H 2025: 3%) or RMB32 million (1H 2025: RMB22 million) was capitalised as the cost of property development, with the remaining 96% (1H 2025: 97%) of interest costs relating to mortgage loans on completed properties and borrowings for general working capital purposes being accounted for as expenses. Taxation was recorded at RMB76 million in 1H 202 6 (1H 2025: credit amount of RMB68 million). The change was primarily due to the increase in deferred tax. Chinese mainland enterprise income tax has been provided for at the applicable income tax rate of 25% on the assessable profits during the year. Land appreciation tax was levied at progressive rates ranging from 30% to 60% based on the appreciation value, which is the proceeds of property sales less deductible expenditures, including costs of land, development, and construction. Profit for the period 1H 2026 was RMB243 million (1H 2025: RMB81 million). Profit attributable to shareholders of the Company for 1H 2026 was RMB223 million (1H 2025: RMB51 million). The core earnings of the Group were as follows: Six months ended 30 June 2026 RMB'million 2025 RMB'million Change % Profit attributable to shareholders of the Company 223 51 337% Decrease in fair value of investment properties, net of tax 108 123 Share of results of associates and joint ventures - decrease in fair value of investment properties, net of tax 68 76 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 176 199 Non-controlling interests 4 13 -------------------------------------------- -------------------------------------------- Net effect of changes in the valuation 180 212 -------------------------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Profit attributable to shareholders of the Company before revaluation 403 263 53% -------------------------------------------- -------------------------------------------- Core earnings of the Group 403 263 53% = = = = = = = = = = = = ============ Earnings per share for 1H 2026 were RMB2.78 cents, calculated based on a weighted average of approximately 8,009 million shares in issue in 1H 202 6 (1H 2025: earnings per share of RMB0. 64 cents, calculated based on a weighted average of approximately 8,009 million shares in issue). Dividends payable to shareholders of the Company must comply with certain covenants under the senior notes and bank borrowings. In August 2026, the Group obtained the consents from the holders of the senior notes with respect to the proposed amendments to certain covenants. Details of the consent solicitations were set out in the announcements of the Company dated 27 July and 4 August 2026. The modified covenants better reflect our Asset-Light strategy and give additional flexibility to the Group. To commemorate the 20th anniversary of the Group’s listing on the Main Board of The Stock Exchange of Hong Kong Limited and having considered the Group’s financial performance during the period, the Board has resolved to declare a special dividend of HKD0.04 per share.
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Page 20 Major Transaction In February 2026, the Group entered into a cooperation agreement with Manulife LP , China Life Trustees Limited, Haikou Vision Co-Creation No. 1 Fund LP (“Dajia LP”) and Dajia GP to restructure the investment holding structure of 5 Corporate Avenue and Xintiandi Hubindao through the formation of a limited partnership and equity transfer . The transaction was accounted for as a financing arrangement and the Group still holds 44.55% of the partnership interests of 5 Corporate Avenue and Xintiandi Hubindao upon completion. For details, please refer to the announcements issued by the Company dated 6 February 2026 and 17 March 2026. Liquidity, Capital Structure, and Gearing Ratio During 1H 2026, the following major financing matters were completed: 1) The Group issued an aggregate principal amount of USD450 million senior notes due 202 9 with a coupon rate of 9.75% per annum. 2) The Group fully repaid an aggregate principal amount of USD400 million of senior notes. 3) In March 2026, the Group redeemed early all outstanding receipts under securitisation arrangements amounting to RMB4,285 million. The structure of the Group’s borrowings as of 30 June 2026 is summarised below: Total Due within one year Due in more than one year but not exceeding two years Due in more than two years but not exceeding five years Due in more than five years RMB'million RMB'million RMB'million RMB'million RMB'million Bank and other borrowings – RMB 22,743 1,562 2,877 5,844 12,460 Bank borrowings – USD 1,985 1,985 - - - Senior notes – USD 3,123 - - 3,123 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total 27,851 3,547 2,877 8,967 12,460 ============ ============ ============ ============ ============ Cash and bank deposits as of 30 June 2026 totalled RMB6,142 million (31 December 2025: RMB6,451 million), which included RMB 1,082 million (31 December 202 5: RMB 1,816 million) of deposits pledged to banks and RMB 2,664 million (31 December 20 25: RMB2,390 million) of restricted bank balances which can only be applied to designated projects of the Group. As of 30 June 2026, the Group’s net debt (excess of the sum of senior notes and bank and other borrowings net of bank balances and cash including pledged bank deposits and restricted bank deposits) was RMB21,709 million (31 December 2025: RMB19,843 million), and its total equity was RMB38,678 million (31 December 2025: RMB38,230 million). The Group’s net gearing ratio was 56% as of 30 June 2026 (31 December 2025: 52%), calculated based on the net debt over the total equity. As of 30 June 202 6, total USD borrowings (including both hedged and unhedged positions) amounted to RMB 5,108 million (31 December 2025: RMB5,120 million), accounting for 18% of total borrowings (31 December 2025: 19%). The total undrawn banking facilities available to the Group amounted to approximately RMB3,170 million as of 30 June 2026 (31 December 2025: RMB4,015 million). Pledged Assets As of 30 June 2026, the Group had pledged investment properties, properties under development for sale, property and equipment, right-of-use assets, receivables, bank deposits and the equity interests in a subsidiary totalling RMB 40,797 million (31 December 202 5: RMB39,121 million) to secure the Group’s borrowings totalling RMB 19,205 million (31 December 2025: RMB18,765 million).
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Page 21 Capital and Other Development Related Commitments As of 30 June 202 6, the Group had contracted commitments for development costs, capital expenditure and other investments of RMB 6,705 million (31 December 202 5: RMB7,358 million). Excluding the non -controlling interest's share, total capital commitment attributable to the Group was RMB4,367 million (31 December 2025: RMB5,005 million). Cash Flow Management and Liquidity Risk Management of cash flow is the responsibility of the Group’s treasury function at the corporate level. The Group’s commitment is to maintain a balance between continuity of funding and flexibility through a combination of internal resources, bank borrowings and debt financing, as appropriate. Cash flow forecasting is performed in the operating entities of t he Group and aggregated by the treasury. The treasury function monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements. As of 30 June 2026, debt due within one year amounted to RMB3,547 million (31 December 2025: RMB6,894 million), accounting for 13% of total borrowings (31 December 2025: 26%). The Group will continue to take a very prudent approach to capital management, with healthy cashflow a top priority for its liquidity management. Exchange Rate and Interest Rate Risks The Group’s revenue is denominated in RMB. Thus, the coupon payments and repayment of the principal amounts of the RMB bank and other borrowings do not expose the Group to any exchange rate risk. However, a portion of the revenue is converted into other currencies to meet foreign -currency-denominated debt obligations, such as bank borrowings and senior notes issued in 202 6 denominated in USD. Thus, to the extent that the Group has a net currency exposure, there is exposure to fluctuations in foreign exchange rates. As of 30 June 202 6, the Group had entered into USD254 million of cross currency swaps to hedge the USD currency risk against the RMB. The Group continues to monitor its exposure to exchange rate risk closely. It may consider employing additional derivative financial instruments to hedge against its remaining exposure to exchange rate risk, if necessary. The Group’s exposure to interest rate risk results from fluctuations in interest rates. Most of the Group’s bank borrowings consist of variable-rate debt obligations with original maturities ranging from one to 15 years. Increases in interest rates would raise interest expenses relating to the outstanding variable rate borrowings and the cost of new debt. Fluctuations in interest rates may also lead to significant fluctuations in the fair value of the debt obligations. As of 30 June 2026, the Group had various outstanding loans that bear variable rates of interest linked to the Secured Overnight Financing Rate (“SOFR”), Offshore RMB Hong Kong Inter-bank Offered Rates and the Loan Prime Rate. The Group has hedged against the variability of cash flow arising from interest rate fluctuations by entering into cross currency swaps in which the Group received interest at variable rates at SOFR and paid interest at fixed rates, based on the notional amount of USD 104 million. The Group continues to monitor its exposure to interest rate risk closely. It may consider employing additional derivative financial instruments to hedge against its remaining exposure to interest rate risk, if necessary. Save as disclosed above, as of 30 June 202 6, the Group does not hold any other derivative financial instruments linked to exchange rates or interest rates. The Group continues to monitor its exposure to exchange rate and interest rate risks closely and may employ derivative financial instruments to hedge against risk.
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Page 22 The Board of Directors (the “Board”) of Shui On Land Limited (the “Company” or “Shui On Land”) hereby announces the unaudited consolidated results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2026 as follows: INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Six months ended Six months ended Notes 30 June 2026 (Unaudited) 30 June 2025 (Unaudited) HKD'million RMB'million HKD'million RMB'million (Note 2) (Note 2) Revenue 4 1,946 1,711 2,253 2,074 Cost of sales (619) (544) (766) (705) --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Gross profit 1,327 1,167 1,487 1,369 Net other income 5 537 472 188 173 Selling and marketing expenses (49) (43) (58) (53) General and administrative expenses (433) (381) (415) (382) Decrease in fair value of the investment properties (125) (110) (144) (133) Share of results of associates and joint ventures (39) (34) (79) (73) Finance costs, inclusive of exchange differences 6 (855) (752) (965) (888) --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Profit before tax 7 363 319 14 13 Tax 8 (86) (76) 74 68 --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Profit for the period 277 243 88 81 =============== =============== =============== =============== Attributable to: Shareholders of the Company 254 223 55 51 --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Non-controlling shareholders of subsidiaries 23 20 33 30 --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- 277 243 88 81 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =============== =============== Earnings per share attributable to 10 shareholders of the Company -Basic HKD3.16 cents RMB2.78 cents HKD0.70 cents RMB0.64 cents = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = -Diluted HKD3.16 cents RMB2.78 cents HKD0.70 cents RMB0.64 cents = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = ================
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Page 23 INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months ended Six months ended 30 June 2026 (Unaudited) 30 June 2025 (Unaudited) HKD'million RMB'million HKD'million RMB'million (Note 2) (Note 2) Profit for the period 277 243 88 81 --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations 66 58 20 18 The effective portion of changes in the fair value of hedging instruments designated as cash flow hedges (81) (71) (23) (21) Reclassification from hedge reserve to profit or loss arising from hedging instruments 55 48 3 3 Share of other comprehensive income/(expense) of an associate and a joint venture 33 29 (13) (12) --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Other comprehensive income/(expense) for the period 73 64 (13) (12) --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Total comprehensive income for the period 350 307 75 69 =============== =============== =============== =============== Total comprehensive income attributable to: Shareholders of the Company 327 287 42 39 --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- Non-controlling shareholders of subsidiaries 23 20 33 30 --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- 350 307 75 69 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =============== ===============
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Page 24 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Notes 30 June 2026 31 December 2025 RMB'million (Unaudited) RMB'million (Audited) Non-current assets Investment properties 42,475 40,160 Interests in associates 11,877 11,888 Interests in joint ventures 11,560 12,282 Property and equipment 748 780 Right-of-use assets 24 26 Receivables, deposits, and prepayments 11 190 220 Pledged bank deposits 666 841 Loans to a non-controlling shareholder of a subsidiary 13 18 Deferred tax assets 302 301 Other non-current assets 68 60 -------------------------------------------------- -------------------------------------------------- 67,923 66,576 -------------------------------------------------- -------------------------------------------------- Current assets Properties under development for sale 3,450 3,227 Properties held for sale 466 470 Receivables, deposits, and prepayments 11 629 607 Amounts due from associates 144 150 Loans to/amounts due from joint ventures 4,534 3,949 Loan to a non-controlling shareholder of a subsidiary - 3 Amounts due from related companies 376 390 Contract assets 50 45 Pledged bank deposits 416 975 Bank balances and cash 5,060 4,635 Assets classified as held for sale 1,550 1,550 -------------------------------------------------- -------------------------------------------------- 16,675 16,001 -------------------------------------------------- -------------------------------------------------- Current liabilities Accounts payable, deposits received, and accrued charges 12 3,143 3,786 Contract liabilities 1,265 522 Bank and other borrowings 3,547 4,040 Senior notes - 2,809 Receipts under securitisation arrangements - 45 Tax liabilities 1,135 2,836 Amounts due to non-controlling shareholders of subsidiaries 29 9 Amounts due to associates 161 61 Amounts due to joint ventures 29 15 Amounts due to related companies 331 331 Lease liabilities 3 3 Derivative financial instruments 54 37 -------------------------------------------------- -------------------------------------------------- 9,697 14,494 -------------------------------------------------- -------------------------------------------------- Net current assets 6,978 1,507 -------------------------------------------------- -------------------------------------------------- Total assets less current liabilities 74,901 68,083 ============= =============
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Page 25 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION - CONTINUED Notes 30 June 2026 31 December 2025 RMB'million (Unaudited) RMB'million (Audited) Non-current liabilities Bank and other borrowings 21,181 15,160 Senior notes 3,123 - Receipts under securitisation arrangements - 4,240 Deferred tax liabilities 2,764 2,681 Accounts payable, deposits received, and accrued charges 12 526 507 Loans from an associate 5,810 5,735 Loans from joint ventures 2,706 1,484 Loans from non-controlling shareholders of subsidiaries 14 - Lease liabilities 45 46 Derivative financial instruments 54 - -------------------------------------------------- -------------------------------------------------- 36,223 29,853 -------------------------------------------------- -------------------------------------------------- Capital and reserves Share capital 146 146 Reserves 36,618 36,331 -------------------------------------------------- -------------------------------------------------- Equity attributable to shareholders of the Company 36,764 36,477 -------------------------------------------------- -------------------------------------------------- Non-controlling interests 1,914 1,753 -------------------------------------------------- -------------------------------------------------- Total equity 38,678 38,230 -------------------------------------------------- -------------------------------------------------- Total equity and non-current liabilities 74,901 68,083 = = = = = = = = = = = = = =============
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Page 26 Notes to the interim condensed consolidated financial information: 1. General The interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting issued by the International Accounting Standards Board and the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited . The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements. It should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. 2. Presentation The Hong Kong dollar figures presented in the interim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income are shown for reference only. They are based on the exchange rate of RMB1.000 to HKD1.1374 for the six months ended 30 June 2026 and RMB1.000 to HKD1.0865 for the six months ended 30 June 2025, being the average exchange rates that prevailed during the respective periods. 3. Changes in Accounting Policies and Disclosures The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended IFRS Accounting Standards for the first time for the current period’s financial information. Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Annual Improvement to IFRS Accounting Standards – V olume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 The nature and impact of the amended IFRS Accounting Standard are described below: Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity’s rights to the contractual cash flows expire or are transferred, while a financial lia bility is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Since the Group’s accounting policy for the derecognition of financial assets and liabilities in prior years aligned with the amendments and the Group did not have the financial assets that were addressed by the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. Annual Improvements to IFRS Accounting Standards – V olume 11 set out narrow scope amendments to IFRS 1, IFRS 7(and the accompanying Guidance on implementing IFRS 7), IFRS 9, IFRS 10 and IAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding IFRS Accounting Standards. The amendments did not have any impact on the interim condensed consolidated financial information.
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Page 27 4A. Revenue Information Set out below are disaggregation of revenue from contracts with customers and the reconciliation of the revenue from contracts with customers to the amounts disclosed in the segment information. Six months ended 30 June 2026 2025 RMB'million RMB'million (Unaudited) (Unaudited) Property development: Property sales 7 145 _______ _______ Property management: Property management fee income 291 281 _______ _______ Construction 97 286 Others 278 397 _______ _______ Revenue from contracts with customers 673 1,109 _______ _______ . Geographical markets: Shanghai 450 757 Wuhan 107 226 Foshan 72 74 Chongqing 28 30 Nanjing 16 22 _______ _______ 673 1,109 _______ _______ Timing of revenue recognition At a point in time 7 145 Over time 666 964 _______ _______ 673 1,109 _______ _______ Property investment: (property investment segment) Rental income from investment properties 900 856 Rental-related income 138 109 _______ _______ 1,038 965 _______ _______ Total 1,711 2,074 _______ _______
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Page 28 4B. Segmental Information The Group is organised based on its business activities and has the following four major reportable segments: Property development - development and sale of properties Property investment - offices and commercial/mall leasing Property management - provision of daily management service of properties Construction - construction, interior fitting-out, renovation and maintenance of building premises Six months ended 30 June 2026 (Unaudited) Property development Property investment Property management Construction Reportable segment total Others Consolidated RMB'million RMB'million RMB'million RMB'million RMB'million RMB'million RMB'million SEGMENT REVENUE Segment revenue of the Group 7 1,038 291 97 1,433 278 1,711 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = SEGMENT RESULTS Segment results of the Group (64) 666 68 (2) 668 152 820 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Share of results of associates and joint ventures (34) Finance costs, inclusive of exchange differences (752) Net other income 472 Unallocated expenses (187) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Profit before tax 319 ==========
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Page 29 4B. Segmental Information - continued Six months ended 30 June 2025 (Unaudited) Property development Property investment Property management Construction Reportable segment total Others Consolidated RMB'million RMB'million RMB'million RMB'million RMB'million RMB'million RMB'million SEGMENT REVENUE Segment revenue of the Group 145 965 281 286 1,677 397 2,074 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = SEGMENT RESULTS Segment results of the Group 77 575 55 17 724 265 989 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Share of results of associates and joint ventures (73) Finance costs, inclusive of exchange differences (888) Net other income 173 Unallocated expenses (188) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Profit before tax 13 = = = = = = = = = = Segment results represent the profit earned or loss incurred by each segment without allocation of central administration costs, directors’ salaries, share of results of associates and joint ventures, finance costs inclusive of exchange differences, net other income and other unallocated expenses. This is the measure reported for resource allocation and performance assessment.
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Page 30 5. Net Other Income Six months ended 30 June 2026 2025 RMB'million RMB'million (Unaudited) (Unaudited) Interest income from banks 26 31 Interest income from loans to a joint venture 15 14 Government grants 4 4 Gain on derecognition of financial liabilities - 38 Net loss on disposal of investment properties - (10) Others * 427 96 ---------------------------------------------- ---------------------------------------------- 472 173 = = = = = = = = = = = = ============ * Included a gain of RMB356 million from purchase of interest in subsidiaries during six months ended 30 June 2026. 6. Finance Costs, Inclusive of Exchange Differences Six months ended 30 June 2026 2025 RMB'million RMB'million (Unaudited) (Unaudited) Interest on bank and other borrowings 520 491 Interest on receipts under securitisation arrangements 38 92 Interest on loans from an associate and joint ventures 39 37 Interest on senior notes 142 131 Interest expenses from lease liabilities - 1 ---------------------------------------------- ---------------------------------------------- Total interest costs 739 752 Less: Amount capitalised to investment properties under construction or development and properties under development for sale (32) (22) ---------------------------------------------- ---------------------------------------------- Interest expenses charged to profit or loss 707 730 Net exchange (gain)/loss (9) 87 Others 54 71 ---------------------------------------------- ---------------------------------------------- 752 888 = = = = = = = = = = = = ============
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Page 31 7. Profit Before Tax The Group’s profit before tax is arrived at after charging/(crediting): Six months ended 30 June 2026 2025 RMB'million RMB'million (Unaudited) (Unaudited) Depreciation of property and equipment 36 37 Depreciation of right-of-use assets 2 2 Employee benefit expenses Directors' emoluments Fees 2 2 Salaries, bonuses and other benefits 11 13 ---------------------------------------------- ---------------------------------------------- 13 15 ---------------------------------------------- ---------------------------------------------- Other staff costs Salaries, bonuses and other benefits 371 377 Retirement benefit costs 24 24 ---------------------------------------------- ---------------------------------------------- 395 401 ---------------------------------------------- ---------------------------------------------- Total employee benefit expenses 408 416 Less: Amount capitalised to investment properties under construction or development and properties under development for sale (16) (15) ---------------------------------------------- ---------------------------------------------- 392 401 ---------------------------------------------- ---------------------------------------------- Lease payments relating to short-term leases and low-value leases 3 2 ---------------------------------------------- ----------------------------------------------
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Page 32 8. Tax Six months ended 30 June 2026 2025 RMB'million RMB'million (Unaudited) (Unaudited) Chinese mainland enterprise income tax (“EIT”) - Charge for the period 9 44 Deferred tax - Charge/ (credit) for the period 98 (97) Chinese mainland land appreciation tax (“LAT”) - Credit for the period (37) (24) Chinese mainland withholding tax - Charge for the period 6 9 --------------------------------------------- --------------------------------------------- 76 (68) = = = = = = = = = = = = ============ Chinese mainland EIT was provided for at the applicable income tax rate of 25% on the estimated assessable profits of the Group’s subsidiaries established in the Chinese mainland during the period. The provision of LAT of Chinese mainland is estimated according to the requirements as stipulated in the relevant tax laws and regulations. The LAT has been provided for at progressive rates of the appreciation value, with certain allowable deductions, including land costs, borrowing costs, and the relevant property development expenditures. 9. Dividends Six months ended 30 June 2026 2025 RMB'million RMB'million (Unaudited) (Unaudited) No final dividend in 2025 (2025: final dividend paid in respect of 2024 of HKD0.036 per share) - 268 --------------------------------------------- --------------------------------------------- To commemorate the 20th anniversary of the Group’s listing on the Main Board of The Stock Exchange of Hong Kong Limited and having considered the Group’s financial performance during the period, the Board has resolved to declare a special dividend of HKD0.04 per share.
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Page 33 10. Earnings Per Share The calculation of the basic and diluted earnings per share attributable to shareholders of the Company is based on the following data: Six months ended 30 June 2026 2025 RMB'million RMB'million Earnings (Unaudited) (Unaudited) Earnings for basic/diluted earnings per share, being profit for the period attributable to shareholders of the Company 223 51 ---------------------------------------------- ---------------------------------------------- Six months ended 30 June 2026 2025 'million 'million Number of shares (Unaudited) (Unaudited) The weighted average number of ordinary shares for basic earnings per share (note (a)) 8,009 8,009 Effect of dilutive potential ordinary shares ------------------------------------------ - ------------------------------------------- - ---------------------------------------------- ---------------------------------------------- The weighted average number of ordinary shares for diluted earnings per share 8,009 8,009 = = = = = = = = = = = = = = = = = = = = = = = = Basic earnings per share (note (b)) RMB2.78 cents RMB0.64 cents HKD3.16 cents HKD0.70 cents = = = = = = = = = = = = = = = = =============== Diluted earnings per share (note (b)) RMB2.78 cents RMB0.64 cents HKD3.16 cents HKD0.70 cents = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Notes: (a) The weighted average number of ordinary shares shown above has been arrived at after deducting 17,710,250 (six months ended 30 June 2025: 17,710,250) shares held by a share award scheme trust. (b) The figures expressed in Hong Kong dollars presented above are shown for reference only and were arrived at based on the exchange rates of RMB1.000 to HKD 1.1374 for the six months ended 30 June 202 6 and RMB1.000 to HKD1.0865 for the six months ended 30 June 2025, being the average exchange rates during the respective periods.
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Page 34 11. Receivables, Deposits, and Prepayments Notes: (a) As of 30 June 2026 and 31 December 2025, trade receivables with issuance of debit notes to the tenants amounted to RMB44 million and RMB32 million, respectively. As of 30 June 2026 and 31 December 2025, trade receivables from contracts with customers amounted to RMB154 million and RMB166 million, respectively. (b) As of 30 June 202 6 and 31 December 202 5, other deposits and prepayments amounted to RMB125 million and RMB85 million, respectively. Included in the Group's receivables, deposits, and prepayments are trade receivable balances of RMB460 million (2025: RMB507 million), of which 67% (2025: 64%) are not yet past due, 10% (2025: 15%) are past due less than 90 days, and 23% (2025: 21%) are past due over 90 days, as compared to when revenue was recognised. Out of the past due balances, RMB108 million (2025: RMB106 million) has been past due 90 days or more and is not considered as in default since the directors of the Company consider that such balances could be recovered based on repayment history, the financial conditions and the current credit worthiness of each customer. 30 June 2026 RMB'million (Unaudited) 31 December 2025 RMB'million (Audited) Trade receivables (note (a)) 460 507 Prepayments of relocation costs - 17 Other deposits, prepayments, and other assets (note (b)) 335 295 Value-added tax recoverable 24 8 --------------------------------------------- 819 --------------------------------------------- 827 Less: non-current portion (190) (220) --------------------------------------------- --------------------------------------------- 629 607 --------------------------------------------- ---------------------------------------------
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Page 35 12. Accounts Payable, Deposits Received, and Accrued Charges Note: Included in the Group's accounts payable, deposits received, and accrued charges are trade payable balances of RMB865 million (2025: RMB1,288 million), of which 80% (2025: 81%) are aged less than 30 days, 9% (2025: 3%) are aged between 31 and 90 days, and 11% (2025: 16%) are aged more than 90 days, based on the invoice date. 30 June 2026 RMB'million (Unaudited) 31 December 2025 RMB'million (Audited) Current portion comprises: Trade payables (note) 865 1,288 Deed tax and other tax payables 45 56 Deposits received in advance for the rental of investment properties 409 390 Value-added tax payables 70 83 Value-added tax arising from contract liabilities 76 31 Cash received in respect of land resumption 870 870 Other payables and accrued charges 808 1,068 --------------------------------------------- 3,143 --------------------------------------------- 3,786 --------------------------------------------- --------------------------------------------- Non-current portion comprises: Deposits received in advance for the rental of investment properties 426 407 Other payables 100 100 --------------------------------------------- 526 --------------------------------------------- 507 --------------------------------------------- ---------------------------------------------
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Page 36 Market Outlook The global political and economic environment became increasingly complex in the first half of 2026, as widening geopolitical conflicts and rising trade barriers continued to reshape global trade, investment and supply chains. In particular, the conflict i n the Middle East drove up energy and commodity prices, renewing inflationary pressures and constraining the scope for monetary easing. Although these headwinds weighed on economic activity, their impact was partly offset by sustained investment in artific ial intelligence (AI) and related technology infrastructure, allowing the global economy to maintain moderate expansion. The International Monetary Fund currently projects global growth of 3.0% in 2026, below the average pace recorded over the previous two years. While further adoption of AI could provide additional support to productivity and growth, the sustainability of the current investment cycle remains uncertain. Looking ahead, persistent geopolitical uncertainty, greater trade fragmentation, elevate d public debt and increasingly constrained policy space are likely to weigh on the outlook and add further complexity to the global operating environment. China’s economy grew by 4.7% year-on-year in the first half of 2026, as its structural transformation continued amid an increasingly pronounced K-shaped divergence. On the upward side, new quality productive forces continued to advance, with technological innovation, export-oriented industries and advanced manufacturing providing important support to growth. AI in particular is increasingly reshaping China’s growth momentum through investment, industrial upgrading and productivity enhancement. However, these new growth drivers have yet to translate fully into broad -based improvements in employment, household income expectations and consumption. Domestic demand remained subdued, while the ongoing property market adjustment continued to weigh on household wealth and market confidence. In response, the 15th Five -Year Plan and the newly introduced plan to expand consumption place gre ater emphasis on strengthening household consumption capacity and the social safety net, reflecting a longer -term effort to rebalance the growth model. Within this uneven economic landscape, China’s residential property market remained in a prolonged bottoming -out process during the first half of 2026. Nationwide sales of new commodity properties by gross floor area declined by 11.6% year-on-year, while real estate development investment fell by 18.0%, reflecting continued weakness in market demand and developer confidence. As the market adjusts towards a new supply -demand balance, differentiation across cities is becoming increasingly pronounced, with dem and likely to become more concentrated in cities supported by stronger economic fundamentals, sustained population and talent inflows, and greater capacity for wealth creation. Recent commentaries in the official publication Qiushi have highlighted the property sector’s broad linkages to domestic demand, household balance sheets and financial stability. Against this backdrop, the Political Bureau of the CPC Central Committee called in April for efforts to “stabilise the real estate market and solidly advance urban renewal”. This reflects a policy focus on stabilising the market in the near term, while facilitating the industry’s longer-term transition towards a new development model centered on urban renewal, the revitalisation of existing assets and the delivery of “good houses”. Shanghai’s Grade A office market showed marginal improvement amid continued adjustment in the first half of 2026. According to JLL, citywide net absorption reached approximately 433,000 sq.m., significantly higher than a year earlier, while the vacancy rate declined to 23.5%. Leasing activity improved moderately, with cost-driven relocations and moves to higher-quality office space remaining the primary sources of demand. The rental decline also slowed, although citywide rents still fell by 9.4% year-on-year. Looking ahead, a substantial pipeline of new completions will keep supply pressure elevated over the next two to three years. Over the longer term, however, supply-side policy is shifting towards controlling new supply, optimising existing stock and revitalising underutilised commercial properties. On the demand side, the outlook remains cautiously positive, supported by the continued development of industries associated with new quality productive forces and Shanghai’s established strengths in high-end services. Nevertheless, the market will remain tenant- favourable and highly differentiated, with negotiating margins likely to narrow first for well -occupied, high-quality projects in core locations, while competition remains intense in supply-heavy submarkets. Shanghai’s retail property market is entering a new normal characterised by modest recovery and pronounced divergence. According to JLL, vacancy rates in prime and decentralised retail areas stood at 8.1% and 13.7%, respectively, with prime locations showi ng greater resilience due to their stronger footfall and concentration of consumer spending. Rents remained under adjustment, although the pace of decline moderated. Looking ahead, vacancy rates are expected gradually to improve, while a broad -based stabilisation in rents will take longer, with prime retail areas likely to recover earlier. Performance also varied significantly across retail categories. Sportswear, collectible toys, consumer electronics and affordable dining remained active, while leading brands accelerated the rollout of large flagship and experiential stores. This reflects the continuing transformation of physical retail from a place of transaction into a platform for brand expression, social interaction and lifestyle experiences. In line w ith these trends, the Group’s Xintiandi commercial portfolio will further strengthen its cultural programming, community engagement and placemaking capabilities, capturing growing demand for flagship formats, experiential consumption and service -oriented offerings, while reinforcing its differentiated positioning through refined operations.
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Page 37 Shanghai’s economy maintained solid growth in the first half of 2026, with GDP expanding by 5.6% year-on-year. Beyond the headline growth, the city’s broader momentum was supported not only by technological innovation and advanced manufacturing, but also b y its strong financial and high -end service sectors. The output of Shanghai’s three leading industries—integrated circuits, AI and biomedicine —rose by 14.6%, while financial sector value added increased by 10.2%. Rooted in Shanghai’s high level of openness and its capacity to allocate global capital, technology and talent, these service functions also provide an enabling platform for the commercialisation and scaling-up of innovation. Major global platforms such as the World Artificial Intelligence Conference further demonstrate the city’s convening power and international connectivity. Together, these mutually reinforcing capabilities are strengthening Shanghai’s overall development momentum and its position as a leading global city. A marked acceleration in industrial production drove Wuhan’s economic growth of 5.7% year-on-year in the first half of 2026. Value added of industrial enterprises above designated size increased by 15.4%, while high -tech manufacturing surged by 65.7%, supp orted by rapid growth in electronic information, civilian drones, integrated circuits and other technology industries. These expanding industrial clusters are strengthening Wuhan’s momentum in advanced manufacturing and innovation. Domestic demand, however, remained subdued. Retail sales and fixed asset investment declined by 0.7% and 5.3%, respectively, while service sector value added grew by 4.2%, indicating that growth remained concentrated in the secondary sector. Looking ahead, the continued development of major clusters such as Optics Valley and Auto Valley should support industrial upgrading, although a broader transmission into employment, consumption and services will be important for achieving more balanced growth. Chongqing’s economy grew by 4.2% year -on-year in the first half of 2026, maintaining steady expansion even though the pace moderated. The service sector provided the main support for growth, expanding by 5.3%, compared with 2.2% growth in the secondary sector. Manufacturing nevertheless remained broadly stable, supported by the city’s intelligent equipment, electronic information and automotive industries. Retail sales increased moderately by 2.3%, with sports and entertainment products and communication eq uipment remaining relatively active. Fixed asset investment edged down by 0.4%. Cultural tourism and inbound travel emerged as more visible areas of strength. Nearly 1.5 million cross-border passenger movements were recorded at Chongqing Jiangbei International Airport, up 39.5% year -on-year, with particularly strong growth in foreign passenger traffic. Together, Chongqing’s diversified industrial base and expanding external connectivity underpin business activity, while modern services, cultural tourism and rising visitor flows provide additional support for the city’s commercial vitality. Nanjing recorded steady economic growth in the first half of 2026, with GDP expanding by 5.3% year -on-year. The service sector grew by 6.3%, outpacing the 3.0% growth in the secondary sector, while high-tech manufacturing increased by 14.5%, reflecting con tinued momentum in advanced industries. Consumption and investment remained relatively weak. Retail sales declined by 0.5%, while fixed asset investment fell by 11.8%. Industrial investment nevertheless increased by 10.2%, indicating that investment continued to shift towards industrial upgrading and new growth drivers. Over the medium to long term, deeper integration within the cross -provincial Nanjing metropolitan area, together with the city’s targets of exceeding 10 million permanent residents and increasing the share of residents aged below 35 to over 35%, could broaden its consumer catchment and talent base, providing longer-term support for office and retail demand. Foshan’s economy remains at a critical stage in the transition between old and new growth drivers. In the first half of 2026, GDP edged up by 0.2% year -on-year amid continued pressure on property -related industries and traditional manufacturing, while the service sector grew by 2.9%. Despite subdued overall growth, there were positive signs of continued industrial transformation. Value added in high-tech manufacturing above designated size increased by 11.6%, while the output of lithium-ion batteries and industrial robots rose by 41.0% and 27.6%, respectively. However, growth in emerging industries has yet to fully offset the slowdown in traditional source of growth. Over the longer term, Foshan’s market-oriented business culture, the integration of smart manufacturing and services, Greater Bay Area cooperation and its positioning as a centre of Lingnan culture should continue to support the city’s value proposition. Its permanent population increased by approximately 93,000 to 9.79 million in 2025, providing a stable base for consumer demand. Chancheng, Foshan’s political, economic and cultural centre, can further leverage Lingnan culture, performances, sporting events and the night -time economy to enrich the urban experience and convert visitor flows into sustained commercial spending. Looking ahead, China’s structural transformation is likely to remain marked by K-shaped divergence. Technological and industrial upgrading will continue to generate new growth, but their transmission into employment, household confidence and consumption wi ll take time. In the property sector, policy support should help stabilise expectations, although the recovery is likely to remain gradual and uneven as the market moves towards a new supply -demand balance. City and project differentiation will therefore r emain a defining feature, favouring locations with stronger economic and demographic fundamentals and developments that offer genuine product quality and customer value. Over the longer term, urban renewal, the revitalisation of existing assets, the delive ry of “good houses” and the creation of high -quality integrated communities will increasingly shape the industry’s transition towards a more sustainable development model.
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Page 38 SPECIAL DIVIDEND The Board of Directors of the Company (the “Board”) has declared a special dividend of HKD0.04 per share, amounting to approximately HKD321 million in aggregate, which is payable on or about 18 September 2026 to shareholders whose names appear on the register of members of the Company on 10 September 2026, being the record date for determining shareholders’ entitlement to the special dividend. Currently, there is no treasury share held by the Company (whether held or deposited in the Central Clearing and Settlement System or otherwise). To qualify for the special dividend, all transfer documents accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong for registration not later than 4:30 p.m. on 10 September 2026. PURCHASE, SALE, OR REDEMPTION/CANCELLATION OF LISTED SECURITIES On 29 June 2021, Shui On Development (Holding) Limited (“SODH”) issued USD400 million in 5.50% senior notes due 2026 (the “2026 SODH Notes”). On 19 January 2026, SODH commenced the Tender Offer to the Eligible Holders of 2026 SODH Notes. On 27 January 2026, the Company determined to accept USD295,218,000 in aggregate principal amount of the 2026 SODH Notes validly submitted for the Tender Offer, representing 73.80% of the total aggregate principal amount of the outstanding 2026 SODH Notes. Following the settlement of the Tender Offer and cancellation of the 2026 SODH Notes purchased pursuant to the Tender Offer, the outstanding aggregate principal amount of the 2026 SODH Notes was USD104,782,000. On 29 June 2026, SODH fully repaid the principal amount of the outstanding 2026 SODH Notes and the accrued and unpaid interest upon its maturity date. Save as disclosed above, neither the Company nor its subsidiaries have purchased, sold, or redeemed any of the Company’s listed securities during the six months ended 30 June 2026. CORPORATE GOVERNANCE The Company reviews its corporate governance practices from time to time to ensure they comply with all the applicable code provisions set out in the Corporate Governance Code (the “CG Code”) contained in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”). During the six months ended 30 June 202 6, the Company has applied the principles of and complied with all the applicable code provisions of the CG Code except for a deviation as stated below. Code provision C.1.5 of the CG Code stated that independent non-executive directors and other non-executive directors should also attend general meetings to gain and develop a balanced understanding of the views of shareholders. Ms. Ya Ting WU, an Independent Non-executive Director (“INED”) of the Company, could not attend the annual general meeting of the Company held on 27 May 2026 (the “2026 AGM”) due to other business engagements. Save for the above, all the INEDs attended the 2026 AGM. The Audit and Risk Committee has reviewed the Group’s unaudited condensed consolidated financial statements for the six months ended 30 June 2026, including the accounting principles and practices and internal control system adopted by the Group. The Audit and Risk Committee does not disagree with the accounting treatments adopted.
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Page 39 COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 of the Listing Rules as the code of conduct regarding securities transactions by the Directors. Following specific enquiries by the Company, all Directors have confirmed that they have complied with the required standard set out in the Model Code during the six months ended 30 June 2026. EMPLOYEES AND REMUNERATION POLICY As of 30 June 2026, the number of employees in the Group was 2 ,793 (31 December 2025: 2,776); which included the headcount of the property management business at 1,4 95 ( 31 December 202 5: 1 ,480), and the headcount of the construction and fitting out business at 106 (31 December 202 5: 106). The Group provides a comprehensive benefits package for all employees as well as career development opportunities. This includes retirement schemes, long-term incentive schemes, medical insurance, other insurances, in -house training, on -the-job training, external seminars, and programs organised by professional bodies and educational institutes. The Group strongly believes in the principle of equality of opportunity. The remuneration policy of the Group for rewarding its employees is based on their performance, qualifications and competency displayed in achieving our corporate goals. SCOPE OF WORK OF MESSRS. ERNST & YOUNG The figures in respect of the Group’s condensed consolidated statement of financial position as of 30 June 202 6, the condensed consolidated statement of profit or loss, the condensed consolidated statement of comprehensive income, and the related notes thereto for the period then ended as set out in the preliminary announcement have been extracted from the Group’s unaudited condensed consolidated financial statements for the period, which has been reviewed by the Group’s auditor, Messrs. Ernst & Young in accordance with Hong Kong Standards on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified Public Accountants. APPRECIATION TO ALL OUR STAKEHOLDERS The year 2026 marks the 20 th anniversary of the Group's listing on the Stock Exchange of Hong Kong, a significant milestone that reflects two decades of resilience, growth and unwavering trust from our shareholders. To express our sincere gratitude for this steadfast support and show our commitment to sharing our success with those who have been part of our story, the Board has resolved to declare a 20th anniversary special dividend of HKD0.04 per share. Finally, I wish to thank the many other stakeholders who have contributed to our success, especially my fellow Board members, our employees and all our business partners. Our prudence and far -sightedness have enabled us to navigate a period of great uncertainty. With signs that the market is beginning to turn around, we can look forward to better times ahead and will make the most of the opportunities that arise. By Order of the Board Shui On Land Limited Vincent H. S. LO Chairman Hong Kong, 27 August 2026
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Page 40 At the date of this announcement, the executive directors of the Company are Mr . Vincent H. S. LO (Chairman), Ms. Stephanie B. Y . LO (Vice Chairman), Ms. Jessica Y. WANG (Chief Executive Officer), and Mr. Douglas H. H. SUNG (Chief Financial Officer and Chief Investment Officer); and the independent non-executive directors of the Company are Mr. Anthony J. L. NIGHTINGALE, Mr . Shane TEDJARATI, Ms. Ya Ting WU, Mr . Albert K. P . NG, Ms. Randy W. S. LAI, Mr. Clement K. M. KWOK and Mr . Stuart MERCIER. This announcement contains forward-looking statements, including, without limitation, words and expressions such as “expect,” “believe,” “plan,” “intend,” “aim,” “estimate,” “project,” “anticipate,” “seek,” “predict,” “may,” “should,” “will,” “would” and “could” or similar words or statements, in particularly statements about future events, our future financial, business or other performance and development, strategy, plans, objectives, goals, and targets, the future development of our industry and the future development of the general economy of our key markets and globally. These statements are based on numerous assumptions regarding our present and future business strategy and the environment in which we will operate. These forward -looking statements reflect our current views concerning future events, are not a guarantee of future performance, and are subject to certain risks, uncertainties, and assumptions, including with respect to the following: ▪ changes in laws and PRC governmental regulations, policies, and approval processes in the regions where we develop or manage our projects; ▪ changes in economic, political and social conditions and competition in the cities we operate in, including a downturn in the property markets; ▪ our business and operating strategies; ▪ our capital expenditure plans; ▪ various business opportunities that we may pursue; ▪ our dividend policy; ▪ our operations and business prospects; ▪ our financial condition and results of operations; ▪ the industry outlook generally; ▪ our proposed completion and delivery dates for our projects; ▪ changes in competitive conditions and our ability to compete under these conditions; ▪ catastrophic losses from fires, floods, windstorms, earthquakes, or other adverse weather conditions, diseases or natural disasters; ▪ our ability to further acquire suitable sites and develop and manage our projects as planned; ▪ availability and changes of loans and other forms of financing; ▪ departure of key management personnel; ▪ performance of the obligations and undertakings of the independent contractors under various construction, building, interior decoration, and installation contracts; ▪ exchange rate fluctuations; ▪ currency exchange restrictions and ▪ other factors beyond our control. This list of important factors is not exhaustive. Additional factors could cause the actual results, performance, or achievements to differ materially. We do not make any representation, warranty, or prediction that the results anticipated by such forward -looking statements, which speak only as of the date of this announcement, will be achieved. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Subject to the requirements of applicable laws, rules, and regulations, we do not have any obligation to update or otherwise revise any forward-looking statements. You should not place undue reliance on any forward-looking information. * For identification purposes only