Earnings release
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- 1 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this ann ouncement, 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. ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2026 FINANCIAL HIGHLIGHTS 2026 2025 Increase / HK$'M HK$'M (Decrease) Turnover 22,955 27,001 (15%) Revenue 22,022 24,443 (10%) Profit attributable to equity shareholders of the Company 3,214 4,031 (20%) HK$ HK$ Earnings per share 9.88 12.39 (20%) Dividend per share: Interim 0.70 0.60 Proposed final 2.90 2.90 Total 3.60 3.50 3% Equity per share attributable to equity shareholders of the Company 215.38 208.83 3%
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- 2 - RESULTS The consolidated results of Guoco Group Limite d (the “Company” or “Guoco”) and its subsidiaries (together the “Group”) for the financial year ended 30 June 2026 together with comparative figures for the previous year are as follows: CONSOLIDATED INCOME STATEMENT 2026 2025 Note HK$’000 HK$’000 Turnover 3 & 4 22,954,854 27,000,595 Revenue 3 & 4 22,022,425 24,443,169 Cost of sales (13,666,571) (14,704,370) Other attributable costs (963,930) (1,010,700) 7,391,924 8,728,099 Other revenue 299,353 344,687 Other net income 5 1,072,617 1,747,204 Administrative and other operating expenses (6,185,973) (4,985,463) Profit from operations before finance costs 2,577,921 5,834,527 Finance costs 3(b) & 6(a) (1,631,110) (2,088,547) Profit from operations 946,811 3,745,980 Valuation surplus on investment properties 484,223 47,931 Share of profits of associates 1,695,523 1,490,113 Share of profits/(losses) of joint ventures 211,768 (24,130) Profit for the year before taxation 3 & 6 3,338,325 5,259,894 Taxation 7 (417,395) (661,899) Profit for the year 2,920,930 4,597,995 Attributable to: Equity shareholders of the Company 3,213,711 4,030,678 Non-controlling interests (292,781) 567,317 Profit for the year 2,920,930 4,597,995 Earnings per share HK$ HK$ Basic 9 9.88 12.39 Diluted 9 9.88 12.39 Details of dividends payable to equity shareholders of the Company attributable to the profit for the year are set out in note 8.
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- 3 - CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2026 2025 HK$’000 HK$’000 Profit for the year 2,920,930 4,597,995 Other comprehensive income for the year (after tax and reclassification adjustments) Items that will not be reclassified to profit or loss: Equity investments at fair value through other comprehensive income ("FVOCI") - net movement in fair value reserve (non-recycling) 155,550 977,769 Actuarial gain/(loss) on defined benefit obligation 13,982 (1,287) 169,532 976,482 Items that may be reclassified subsequently to profit or loss: Exchange translation differences relating to financial statements of foreign subsidiaries, associates and joint ventures 30,191 4,549,679 Changes in fair value of cash flow hedge 28,842 (98,947) Changes in fair value on net investment hedge (145,042) 103,508 Share of other comprehensive income of associates (16,491) (265,121) (102,500) 4,289,119 Other comprehensive income for the year, net of tax 67,032 5,265,601 Total comprehensive income for the year 2,987,962 9,863,596 Total comprehensive income for the year attributable to: Equity shareholders of the Company 3,469,794 8,172,730 Non-controlling interests (481,832) 1,690,866 2,987,962 9,863,596
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- 4 - CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2026 2025 Note HK$’000 HK$’000 NON-CURRENT ASSETS Investment properties 42,207,367 42,084,161 Other property, plant and equipment 12,651,560 13,112,460 Right-of-use assets 6,656,465 6,662,073 Interest in associates 17,146,221 15,733,062 Interest in joint ventures 4,836,571 3,981,193 Equity investments at FVOCI 6,063,593 5,885,080 Deferred tax assets 608,437 630,571 Intangible assets 5,829,892 7,080,431 Goodwill 2,061,946 2,462,740 Pensions surplus 102,132 83,342 98,164,184 97,715,113 CURRENT ASSETS Development properties 9,037,432 13,535,033 Properties held for sale 1,108,313 1,331,280 Inventories 365,726 420,100 Contract assets 4,457,044 4,898,385 Trade and other receivables 10 1,727,886 3,037,908 Tax recoverable 47,859 23,173 Trading financial assets 11,077,789 9,539,059 Cash and short term funds 12,716,702 16,059,678 40,538,751 48,844,616 CURRENT LIABILITIES Contract liabilities 1,541,439 1,023,997 Trade and other payables 11 5,336,125 5,999,052 Bank loans and other borrowings 5,224,246 10,381,890 Taxation 273,036 190,838 Provisions and other liabilities 250,506 131,815 Lease liabilities 532,952 473,636 13,158,304 18,201,228 NET CURRENT ASSETS 27,380,447 30,643,388 TOTAL ASSETS LESS CURRENT LIABILITIES 125,544,631 128,358,501 NON-CURRENT LIABILITIES Bank loans and other borrowings 24,164,052 28,889,403 Amount due to non-controlling interests 2,556,435 2,844,440 Provisions and other liabilities 493,108 521,991 Deferred tax liabilities 901,391 812,632 Lease liabilities 8,563,889 8,554,405 36,678,875 41,622,871 NET ASSETS 88,865,756 86,735,630 CAPITAL AND RESERVES Share capital 1,290,180 1,291,504 Reserves 69,581,162 67,423,814 Total equity attributable to equity shareholders of the Company 70,871,342 68,715,318 Non-controlling interests 17,994,414 18,020,312 TOTAL EQUITY 88,865,756 86,735,630
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- 5 - Notes: 1. ACCOUNTING POLICIES AND BASIS OF PREPARATION (a) Statement of compliance Although not required under the Bye -Laws of the Company, the se financial statements have been prepared in accordance with all applicable H ong Kong Financial Reporting Standards ("HKFRS Accounting Standards "), which collective term includes all applicable individual Hong Kong Financial Reporting Standards (“HKFRSs”), Hong Kong Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). These financial statements also comply with the applicable disclosure provisions of the Hong Kong Companies Ordina nce and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The HKICPA has issued certain amendments to HKFRS Accounting Standards that are first effective or available for early adoption for the current accounting period of the Group. Note 2 provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current accounting period reflected in these financial statements. (b) Basis of preparation of the financial statements The consolidated financial statements for the year ended 30 June 20 26 comprise the Company and its subsidiaries and the Group's interest in associates and joint ventures. The measurement basis used in the preparation of the financial statements is the historical cost basis modified by the revaluation of investment properties and the marking to market of certain financial instruments. The preparation of financial statements in conformit y with HKFRS Accounting Standard s requires management to make judg ements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period , or in the period of the revision and future periods if the revision affects both current and future periods. (c) Hong Kong dollar amounts The consolidated financial statements of the Group are expressed in the United States dollars (“USD”), which is the funct ional currency of the Company. The Hong Kong dollar (“HKD”) figures presented in the sections entitled “FINANCIAL HIGHLIGHTS” and “RESULTS” above are the HKD equivalents of the corresponding USD figures in the consolidated financial statements, which are translated at the rates prevailing at the respective financial year ends for presentation purposes only (2026: US$1 = HK$7.8418, 2025: US$1 = HK$7.8499).
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- 6 - 2. CHANGES IN ACCOUNTING POLICIES The Group has applied amendments to H KAS 21, The effects of changes in foreign exchange rates - Lack of exchangeability issued by the HKICPA to these financial statements for the current accounting period. The amendments do not have a material impact on these financial statements as the Group has not entered into any foreign currency transactions in which the foreign currency is not exchangeable into another currency. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
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- 7 - 3. SEGMENT REPORTING In a manner consistent with the way in which information is reported internally to the Group's senior executive management, the Group has four reportable segments, as described below, which are the Group's strategic business units. The strategic business units engage in different business activities, offer different products and services and are managed separately. The following summary describes the operations in each segment: Other segments include a royalty entitlement from the Group’s Bass Strait's oil and gas production investment and the manufacture, marketing and distribution of health products through Manuka Health New Zealand Limited . None of these se gments met any of the quantitative thresholds for determining reportable segments in 2026 or 2025. Performance is evaluated on the basis of profit or loss from operations before taxation. Inter- segment pricing is determined on an arm's length basis. The Group's measurement methods used to determine reported segment profit or loss remain unchanged from the financial year 2024/25. Segment Business activities Operated by Principal investment: This segment covers debt, equity and direct investments as well as treasury operations and provision of investment advisory and management services, with trading and strategic investments in global capital markets. Subsidiaries and joint venture Property development and investment: This segment involves development of residential and commercial properties and holding properties for rental income in the key geographical markets of Singapore, China, Malaysia and Hong Kong. Subsidiaries, associates and joint ventures Hospitality and leisure: This segment owns, leases or manages hotels and operates gaming and leisure businesses in the United Kingdom and Spain. Subsidiaries Financial services: This segment covers commercial and consumer banking, Islamic banking, investment banking, life and general insurance, Takaful insurance, fund management and unit trust, corporate advisory services and stockbroking. Associate
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- 8 - 3. SEGMENT REPORTING (cont’d) Information regarding the Group's reportable segments for the year is set out below. (a) Reportable segment revenue and profit or loss Property Principal development Hospitality Financial investment and investment and leisure services Others Total HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Segment revenue and profit or loss For the year ended 30 June 2026 Turnover 1,724,239 8,475,943 12,362,409 - 392,263 22,954,854 Disaggregated by timing of revenue - Point in time 791,810 1,943,716 12,362,409 - 392,263 15,490,198 - Over time - 6,532,227 - - - 6,532,227 Revenue from external customers 791,810 8,475,943 12,362,409 - 392,263 22,022,425 Inter-segment revenue 38,707 11,410 - - - 50,117 Reportable segment revenue 830,517 8,487,353 12,362,409 - 392,263 22,072,542 Reportable segment operating profit 1,736,535 696,314 144,226 - 27,352 2,604,427 Finance costs (109,181) (907,727) (610,296) - (30,411) (1,657,615) Valuation surplus on investment properties - 484,223 - - - 484,223 Share of profits of associates - 20,106 - 1,675,416 - 1,695,522 Share of profits of joint ventures 13,668 198,100 - - - 211,768 Profit/(loss) before taxation 1,641,022 491,016 (466,070) 1,675,416 (3,059) 3,338,325
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- 9 - 3. SEGMENT REPORTING (cont’d) (a) Reportable segment revenue and profit or loss (cont’d) Property Principal development Hospitality Financial investment and investment and leisure services Others Total HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Segment revenue and profit or loss For the year ended 30 June 2025 Turnover 3,788,243 11,178,508 11,595,359 - 438,485 27,000,595 Disaggregated by timing of revenue - Point in time 1,230,817 3,603,521 11,595,359 - 438,485 16,868,182 - Over time - 7,574,987 - - - 7,574,987 Revenue from external customers 1,230,817 11,178,508 11,595,359 - 438,485 24,443,169 Inter-segment revenue 79,762 14,868 - - - 94,630 Reportable segment revenue 1,310,579 11,193,376 11,595,359 - 438,485 24,537,799 Reportable segment operating profit 2,645,274 1,509,354 1,690,159 - 58,442 5,903,229 Finance costs (248,817) (1,272,735) (587,208) - (48,489) (2,157,249) Valuation surplus on investment properties - 47,931 - - - 47,931 Share of profits of associates - 4,749 - 1,485,364 - 1,490,113 Share of profits/(losses) of joint ventures 6,790 (30,920) - - - (24,130) Profit before taxation 2,403,247 258,379 1,102,951 1,485,364 9,953 5,259,894
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- 10 - 3. SEGMENT REPORTING (cont’d) (b) Reconciliations of reportable segment revenue, finance costs and interest income Revenue 2026 2025 HK$’000 HK$’000 Reportable segment revenue 22,072,542 24,537,799 Elimination of inter-segment revenue (50,117) (94,630) Consolidated revenue (note 4) 22,022,425 24,443,169 Finance costs 2026 2025 HK$’000 HK$’000 Reportable finance costs 1,657,615 2,157,249 Elimination of inter-segment finance costs (26,505) (68,702) Consolidated finance costs (note 6(a)) 1,631,110 2,088,547 Interest income 2026 2025 HK$’000 HK$’000 Reportable interest income 500,063 672,096 Elimination of inter-segment interest income (26,505) (68,702) Consolidated interest income (note 4) 473,558 603,394
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- 11 - 4. TURNOVER AND REVENUE The Company is an investment holding and investment management company. The principal activities of the subsidiaries which materially aff ected the results or assets of the Group during the year include principal investment, property development and investment, and hospitality and leisure businesses. The amount of each significant category of turnover and revenue is as follows: 2026 2025 HK$'000 HK$'000 Revenue from sale of properties 6,474,410 9,292,401 Revenue from hospitality and leisure 12,345,691 11,573,481 Interest income 473,558 603,394 Dividend income 496,692 857,777 Rental income from properties 1,648,895 1,559,082 Revenue from sales of goods 392,200 438,359 Others 190,979 118,675 Revenue 22,022,425 24,443,169 Proceeds from sale of investments in securities 932,429 2,557,426 Turnover 22,954,854 27,000,595 5. OTHER NET INCOME 2026 2025 HK$'000 HK$'000 Net realised and unrealised gain on trading financial assets 985,957 1,476,965 Net realised and unrealised gain on derivative financial instruments 15,605 14,067 Net gain on foreign exchange contracts 90,730 22,027 Other exchange (losses)/gains (8,132) 154,854 Net gains/(losses) on disposal of property, plant and equipment 107,009 (65,562) Net losses on disposal of intangible assets - (71) Provision made during the year (145,936) (73,420) Gain on disposal of a subsidiary - 66,811 Gain on extinguishment of lease liabilities in relation to surrender of lease liabilities - 100,101 Others 27,384 51,432 1,072,617 1,747,204
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- 12 - 6. PROFIT FOR THE YEAR BEFORE TAXATION Profit for the year before taxation is arrived at after charging/(crediting): (a) Finance costs 2026 2025 HK$’000 HK$’000 Interest on bank loans and other borrowings 1,064,407 1,624,660 Interest on lease liabilities 503,240 440,172 Other borrowing costs 80,378 99,984 Total borrowing costs 1,648,025 2,164,816 Less: borrowing costs capitalised into:borrowing costs capitalised into: development properties (9,904) (14,718) investment properties (7,011) (61,551) Total borrowing costs capitalised (note) (16,915) (76,269) 1,631,110 2,088,547 Note: These borrowing costs have been capitalised at rates of 1.07% to 5.08% per annum (2025: 2.62% to 5.08%). (b) Staff cost 2026 2025 HK$’000 HK$’000 Salaries, wages and other benefits 3,727,898 3,796,250 Contributions to defined contribution retirement plans 126,206 127,120 Social security costs 355,461 286,355 Expenses recognised in respect of defined benefit retirement plans 2,337 3,211 Equity-settled share-based payment expenses 24,827 29,358 4,236,729 4,242,294
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- 13 - 6. PROFIT FOR THE YEAR BEFORE TAXATION (cont’d) (c) Other items 2026 2025 HK$'000 HK$'000 Depreciation - other property, plant and equipment 591,389 531,246 - right-of-use assets 365,373 311,302 Net impairment losses recognised/(reversed) - other property, plant and equipment (note a & b) 50,791 35,937 - intangible assets (note a) 993,752 2,630 - right-of-use assets (note a & b) 215,893 (738) - goodwill (note a & c) 303,039 92,251 Amortisation - customer relationship, licences and brand names 10,571 12,324 - casino licences and brand names 745 447 - Bass Strait oil and gas royalty 35,602 33,998 - other intangible assets 107,637 134,829 Net write down and allowance for foreseeable losses of development properties and properties held for sale (note d) 1,296,783 900,880 Cost of inventories recognised in cost of sales 197,888 202,966 Cost of development properties and properties held for sale recognised in cost of sales 6,521,108 8,057,416 Expense relating to short-term leases and other leases with remaining lease term ending within one year 2,078 2,143 Auditors' remuneration - audit services 34,700 34,045 - tax services 2,627 5,220 - other services 4,893 10,998 Donations 16,491 15,205 Gross rental income from investment properties (1,648,895) (1,559,082) Less: direct outgoings 394,999 357,561 Net rental income (1,253,896) (1,201,521)
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- 14 - 6. PROFIT FOR THE YEAR BEFORE TAXATION (cont’d) (c) Other items (cont’d) Notes: a. The Group identified impairment indicators in individual venues and clubs of The Rank Group Plc, notably the sustained decline in its market capitalisation and challenge from Remote Gaming Duty and increased operating costs. The recoverable amounts of the individual venues and clubs have been calculated with reference to its value -in-use. Value -in-use calculations are based upon estimates of future cash flows derived from the Group's strategic business plan, the pre-tax discount rate of 13% to 15% (2025: 12% to 15%) and growth rates of 2% to 4% (2025: 2% to 4%) used to extrapolate cash flow beyond the forecast period. Following impairment testi ng, the recoverable amount was determined to be lower than its carrying amount , and impairment losses on goodwill of HK$227.5 million (2025: Nil), intangible assets of HK$993.8 million (2025: HK$36.1 million), right -of-use assets of HK$113.8 million (2025: HK$15.7 million) and other property, plant and equipment of HK$5.5 million ( 2025: HK$65.2 million) of the cash generating units (“CGUs”) were recognised respectively at the end of the reporting period. On the other hand, on the same basis, reversals of previously impaired right-of-use assets of HK$62.6 million, other property, plant and equipment of HK$3.1 million (2025: reversals of previously impaired right -of-use assets of HK$41.5 million, other property and equipment of HK$33.2 million and intangible assets of HK$51.8 million) were recognised. The reversal was driven by better than anticipated performance, improved financial forecasts and higher multiples and improved growth rates in the identified venues. b. The Group has conducted the impairment testing of other property, plant and equipment and right-of-use assets of individual hotels. The assets of each hotel property have been identified as individual CGUs for impairment assessment. The Group estimates the recoverable amount of assets using the value -in-use derived from discounted cash flow projections of the CGUs. The estimation of value -in-use of hotel assets involves the assumption of occupancy and room rates over the next few years, the projection of earnings before interest, taxes, depreciation and amortisation forecasts, long term revenue growth rate of 2% (2025: 2%) and maintenance capital expenditure over a period, and discounting the income stream with a pre-tax discount rate of 4% to 18%. (2025: 9% to 16%). Based on the result of the impairment assessment as at 30 June 2025, a hotel property was written down to its recoverable amount, and accordingly, impairment losses on other property, plant and equipment of HK$48.6 million (2025: HK$3.9 million) and right -of-use assets of HK$164.7 million (2025: HK$25.1 million) were recognised in the year. c. Due to uncertainty in future performance outlook , driven by multiple challenges , including increased competitive pressures in key export markets and decline in international demand for premium honey products, the Group conducted an impairment assessment on Manuka Health New Zealand Limited . The recoverable a mount of the CGU was determined using a value-in-use calculation, based on discounted cash flow projections covering a five -year period. Key assumptions included forecast sales growth, gross margin expectations, and a pre-tax discount rate of 14%. As a result, an impairment loss on goodwill of HK$75.5 million (2025: goodwill of HK$92.3 million and intangible assets of HK$18.3 million) was recognised. d. The Group recognised an allowance for foreseeable losses of HK$1,296.8 million (202 5: HK$900.9 million) on development properties and properties held for sale, of which approximately HK$1,264.1 million related to its China development properties , taking into consideration the selling prices of comparable properties, timing of sale launches, location of property, expected net selling prices and development expenditure.
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- 15 - 7. TAXATION Taxation in the consolidated income statement represents: 2026 2025 HK$'000 HK$'000 Current tax Provision for the year 440,725 170,459 (Over)/under-provision in respect of prior years (118,239) 1,515 Pillar Two income tax 14,327 13,298 Over/(under)-provision in respect of prior yearsLand appreciation tax 3,874 (33,401) 340,687 151,871 Deferred tax Origination and reversal of temporary differences 76,708 515,940 Effect of changes in tax rate on deferred tax balances - (5,912) 76,708 510,028 417,395 661,899 The provision for Hong Kong Profits Tax is calculated at 16.5% (202 5: 16.5%) of the estimated assessable profits for the year ended 30 June 2026. Taxation for overseas subsidiaries is similarly charged at the appropriate current rates of taxation ruling in the relevant countries. Land appreciation tax is levied on properties developed by the Group for sale, at progressive rates ranging from 30% to 60% on the appreciation of land value, which under the applicable regulations is calculated based on the proceeds of sales of properties less deductible expenditures including lease charges of land use rights, borrowing costs and relevant property development expenditures. The ultimate holding company (“UHC”) and its subsidiaries (the “UHC Group”) of which the Group and the Company is a part of, is within the scope of the Organisation for Economic Co -operation and Development (“OECD”) Pillar Two model rules whereby top-up tax on profits is required in any jurisdictions in which it operates when the blended effective tax rate in each of those jurisdictions is lower than the minimum effective tax rate of 15%. The tax charge for the year includes a current tax change of HK$14,327,000 (2025: HK$13,298,000) relating to Pillar Two income taxes. The Group has applied the temporary mandatory exception from accounting for deferred taxes arising from any top-up tax due to the Pillar Two income taxes model rules.
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- 16 - 8. DIVIDENDS 2026 2025 HK$'000 HK$'000 Dividends payable/paid in respect of the current year: - Interim dividend of HK$0.70 (2025: HK$0.60) per ordinary share 228,408 197,133 - Proposed final dividend of HK$2.90 (2025: HK$2.90) per ordinary share 954,245 954,251 1,182,653 1,151,384 Dividends paid in respect of the prior year: - Final dividend of HK$2.90 (2025: HK$2.70) per ordinary share 949,517 885,667 The final dividend for the year ended 30 June 2026 of HK$954,245,000 (2025: HK$954,251,000) is calculated based on 329,051,373 ordinary shares (2025: 329,051,373 ordinary shares) in issue as at 30 June 2026. The final dividend proposed after the end of the reporting period has not been recognised as a liability at the end of the reporting period in the financial statements. 9. EARNINGS PER SHARE (a) Basic earnings per share The calculation of basic earnings per share is based on the profit attributable to equity shareholders of the Company of HK$3,213,711,000 (2025: HK$4,030,678,000) and the weighted average number of 325,224,511 ordinary shares (202 5: 325,224,511 ordinary shares) in issue during the year. (b) Diluted earnings per share The diluted earnings per share is equal to the basic earnings per share as there were no dilutive potential ordinary shares outstanding during the years ended 30 June 2026 and 2025.
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- 17 - 10. TRADE AND OTHER RECEIVABLES 2026 2025 HK$'000 HK$'000 Trade debtors 740,416 1,906,988 Other receivables, deposits and prepayments 859,414 1,036,094 Derivative financial instruments, at fair value 61,997 25,999 Interest receivables 66,059 68,827 1,727,886 3,037,908 Included in the Group's trade and other receivables is HK$69.0 million (202 5: HK$90.3 million) which is expected to be recovered after one year. As of the end of the reporting period, the ageing analysis of trade debtors (which are included in trade and other receivables), based on the invoice date and net of allowance for doubtful debts, is as follows: 2026 2025 HK$'000 HK$'000 Within 1 month 568,469 1,829,707 1 to 3 months 128,245 54,564 More than 3 months 43,702 22,717 740,416 1,906,988 11. TRADE AND OTHER PAYABLES 2026 2025 HK$'000 HK$'000 Trade creditors 836,250 1,161,425 Other payables and accrued operating expenses 4,299,933 4,455,999 Derivative financial instruments, at fair value 77,414 241,351 Amounts due to fellow subsidiaries 118,631 136,964 Amounts due to associates and joint ventures 3,897 3,313 5,336,125 5,999,052 Included in trade and other payables is HK$585.8 million (202 5: HK$626.4 million) which is expected to be payable after one year.
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- 18 - 11. TRADE AND OTHER PAYABLES (cont’d) As of the end of the reporting period, the ageing analysis of trade creditors (which are included in trade and other payables), based on the invoice date, is as follows: 2026 2025 HK$'000 HK$'000 Within 1 month 633,704 614,023 1 to 3 months 107,848 462,537 More than 3 months 94,698 84,865 836,250 1,161,425 The amounts due to fellow subsidiaries, associates and joint ventures are unsecured, interest free and have no fixed repayment terms.
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- 19 - DIVIDEND The board of directors of the Company (the “ Board”) will recommend to shareholders for approval at the forthcoming annual general meeting a final dividend for the financial year ended 30 June 2026 of HK$2.90 per share, totalling HK$954 million. Subject to shareholders’ approval at the forthcoming annual general meeting of the Company to be held on 13 November 2026, the final dividend will be payable on 2 December 2026 to the shareholders whose names appear on the Register of Members of the Company on 20 November 2026. MANAGEMENT DISCUSSION AND ANALYSIS Financial Results The Group recorded an audited consolidated profit attributable to equity holders of the Company of HK$3,213.7 million for the year ended 30 June 2026, representing a decline of 20% when compared to the prior year. Basic earnings per share amounted to HK$9.8 8 compared to HK$12.39 in the prior year. The Group’s operating businesses delivered mixed results for the year. The Principal Investment and Financial Services segments reported profits be fore taxation of HK$1,641.0 million and HK$1,675.4 million respectively. Property Development and Investment delivered profit before taxation of HK$491.0 million. This was after taking into account an allowance for foreseeable losses of HK$1,264.1 million in the year for its China development properties. The Hospitality and Leisure and Others segments delivered profits before taxation prior to net impairment provisions of HK$ 1,022.1 million and HK$7 2.4 million. However, these profits were partly offset by impairment provisions of HK$1, 488.2 million and HK$7 5.5 million on the two segments respectively to reflect the challenges in the performance outlook in the sectors, notably the impact from the UK Remote Gaming Duty. The Group’s revenue for the year ended 30 June 2026 decreased by 10% to HK$22.0 billion, primarily due to a decrease of HK$2.7 billion in revenue from the Property Developme nt and Investment segment, arising from the timing of progressive recognition of revenue from residential developments in Singapore. The decrease, however, was partially offset by an increase of HK$0.8 billion in revenue from the Hospitality and Leisure segment attributable to the continued growth of the business in the current year. Review of Operations Principal Investment Global equity markets delivered strong returns during the first half of the financial year, supported by expectations of an easing of monetary policy expectations in the United States , which did not materialise, resilient corporate earnings, and sustained investment in artificial intelligence infrastructure. Market conditions became more volatile in the second half of the year as geopolitical tensions in the Middle East intensified, raising concerns over energy prices, inflationary pressures, and the interest rate outlook. In Asia, regional market performance diverged, with Taiwan, South Korea, and Japan benefiting from continued strength in AI-related capital expenditure, while investor sentiment towards China remained cautious amid ongoing macroeconomic challenges. Meanwhile, European markets continued to face structural headwinds from elevated energy costs and subdued industrial activity, although fiscal support and defence spending provided some offset.
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- 20 - Our investment strategy, which prioritises capital allocation to companies with geographically diversified exposures and strong business fundamentals, mit igated part of the short-term market fluctuations driven by macroeconomic factors during the financial year. The Principal Investment segment recorded a pre -tax profit of HK$1,641.0 million for the year ended 30 June 2026, attributed to realised and unrealised gains on trading financial assets and dividend income received in the financial year. The Principal Investment segment remains focused on investing in high -quality companies expected to create long-term shareholder value, with the potential to produce tangible returns for the Group. As the investment portfolio is measured at fair value, the segment's reported results remain subject to fluctuations in market valuations and may therefore vary significantly between reporting periods. Amid heightened geopolitical tensions and volatile energy prices, central bank policy uncertainty and currency fluctuations challenged global financial markets. Group Treasury adopted proactive risk management and liquidity preservation approach to preserve a robust liqu idity position and maintain financial flexibility despite ongoing market uncertainty. Property Development and Investment GuocoLand Limited (“GuocoLand”) – 66.8% controlled by Guoco For the year ended 30 June 2026, GuocoLand’s revenue was S$1,434.0 million (approximately HK$8,748.9 million), down 25% when compared to the prior year. Revenue from GuocoLand’s property development business was S$1,073.0 million (approximately HK$6,546.4 million) for the year, as compared to S$1,565.2 million (approximately HK$9,549.4 million) in the prior year. This was mainly due to the timing of progressive recognition of revenue from residential developments in Singapore. The decrease in revenue was partially offset by an increase in recurring rental revenue from the property investment business. Revenue from property investment increased by 4% to S$292.5 million (approximately HK$1,784.5 million) for the year, supported by high committed occupancy from its Singapore commercial portfolio. The Lentor Modern mall, which officially opened in January 2026, adds to GuocoLand’s recurring income stream from the progressive lease commencements. With the market conditions in China remaining weak, GuocoLand reviewed the estimated net realisable value of its Chongqing projects. As a result, an allowance for foreseeable losses of S$207.2 million (approximately HK$1,264.1 million) was recognised in the year for its China development properties. Consequently, GuocoLand’s operating profit decreased by 59% to S$125.0 million (approximately HK$762.6 million) for the year. Fair value gains on investment properties recorded in the year increased by 40% to S$82.2 million (approximately HK$501.5 million), mainly driven by gains from the Singapore portfolio. Net finance costs fell by 29% to S$128.4 million (approximately HK$783.4 million) for the year, reflecting lower finance costs after net repayment of loans and borrowings. Supported by the strength of Singapore’s twin engines – property development and property investment, profit after t ax from Singapore grew by 13% to S$341.9 million (approximately HK$2,086.0 million) for the year, reflecting the resilience of GuocoLand’s core Singapore assets. After accounting for the losses from the China business, GuocoLand achieved profit attributable to equity holders of the Company of S$95.2 million (approximately HK$580.8 million) for the year, representing an 11% decline compared to the prior year. While the allowance for foreseeable losses for China’s property development business weighed on earn ings, a growing recurring income base from investment properties, stronger joint venture contributions, lower finance costs, and fair value gains bolstered GuocoLand’s overall performance for the year.
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- 21 - Hospitality and Leisure The Clermont Hotel Group (“CHG”) –100% controlled by Guoco CHG, our key hotel operating business unit in the United Kingdom ( “UK”), recorded a profit after tax of GBP21.8 million (approximately HK$228.8 million) for the year, compared to GBP43.8 million (approximately HK$459.8 mi llion) for the prior year . This result was achieved after taking impairment losses on other property, plant and equipment of GBP4.6 million (appro ximately HK$48.6 million) and right-of-use assets of GBP15.7 million (approximately HK$164.7 million). The London hotel market remained challenging during the financial year. Ongoing geopolitical tensions, economic uncertainty, and pressure on consumer spending contributed to a subdued demand environment, with marke t growth remaining modest. Nevertheless, CHG continued to outperform the market through effective revenue management, strong brand positioning, and disciplined execution of its commercial strategy. As a result, CHG registered growth in average room rates while maintaining the high level of occupancy as last year, contributing to a higher room revenue for the year. Total revenue, including food and beverage and meetings and events, increased to GBP 309.1 million (approximately HK$3,244.6 million). CHG continued to benefit from scale efficienc y at high occupancy levels whilst maintaining a strong focus on cost control through efficient workforce deployment, disciplined procurement processes, and ongoing operational improvements. These measures helped mitigate the impact of higher labour costs, inflationary pressures, and higher energy costs. CHG remained highly cash -generative during the year, enabling a further reduction in external debt and associated financing costs. At the same time, management continued to prioritise investment in hotel infrastructure and asset enhancement projects across the estate to preserve long-term asset value and support future growth. Significant progress was made on the refurbishment of The Tower Suite at The Tower Hotel, which re -opened in May 2026 and enhanced CHG's meetings and events proposition and contribute to future earnings growth. In addition, CHG's strategic partnership with Gordon Ramsay Restaurant Group advanced during the year, with the launch of the UK's first and only Hell's Kitchen restaurant at The Cumberland Hotel in April 2026. This investment broadens CHG's food and beverage offering and further strengthens the attractiveness of its hotel portfolio. CHG also continued to invest in technology, automation, and artificial intelligence initiatives to improve operational efficiency, strengthen commercial effectiveness, and enhance the guest experience. Looking ahead to the current financial year and beyond, uncertainty surrounding geopolitical developments and broader economic conditions is expected to persist. Nevertheless, CHG remains in a strong position to capitalise on opportunities through disciplined execution of its strategy, continued inve stment in its brands and estate, ongoing enhancement of its guest proposition, and a relentless focus on driving long-term sustainable growth. The Rank Group Plc (“Rank”) – 56.2% controlled by Guoco Rank’s net gaming revenue (“NGR”) increased by 5% to GBP835.0 million (approximately HK$8,764.9 million) for the year due to growth across all business units. However, operating profit decreased by 7% to GBP55.7 million (approximately HK$584.7 million), impacted by a loss of GBP6.5 million (approximately HK$68.2 million) as a result of a payment fraud in the Spanish businesses, and in the prior year there was an exceptional gain from the disposal of its non - proprietary business of GBP6.5 million (approximately HK $66.4 million). In addition, following an impairment assessment , net impairment losses of GBP21.7 million (approximately HK$227.5 million) on goodwill, GBP4.9 million (approximately HK$51.2 million ) on right -of-use assets, GBP0.2 million (approximately HK$2.4 million) on other property, plant and equipment and GBP94.7 million (approximately HK$993.8 million) on intangible assets were recorded.
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- 22 - In Grosvenor venues, the visitor numbers grew 2% and spend per visit increased by 3%. The rollout of 850 additional gaming machines permitted by the Gambling Act Review and ongoing performance optimisation have driven growth in the year. However, the performance in table gaming was impacted b y the conflict in the Middle East in the second half of the financial year. For Mecca venues, the number of customer visits was down by 2% but spend per visit increased by 6% for the year. In Spain, the number of customer visits to Enracha venues decreased by 1% but spend per visit increased by 8% in the year. The digital business faced significant headwinds in the year, including the UK statutory levy, maximum staking limit for online slots play, and an increase in the Remote Gaming Duty from 21% to 40% e ffective from 1 April 2026. Reflecting the challenges for the UK gaming sector, impairment provisions stated above were made in the year. To mitigate the challenges, Rank has implemented a targeted cost -reduction programme, covering the above -the-line marketing, supplier costs and headcount reductions. More effective marketing investment has been prioritised, with tailored offers to more clearly identified and higher value customer cohorts. In Spain, Rank has rolled out a series of improvements, including the new apps for YoBingo, YoCasino and YoSports, as well as new gaming product releases. In the third quarter of the financial year, Rank launched YoBingo in Portugal which becomes the first and only dedicated online bingo-led platform in the country. With market-leading brands and a strong balance sheet, Rank is well -placed to implement its future strategy, which will align around casino -led and bingo -led gaming , areas where Rank holds clear competitive strengths. Financial Services Hong Leong Financial Group Berhad (“HLFG”) – 25.4% owned by Guoco HLFG recorded a profit before tax of RM6,308.1 million (approximately HK$12,129.0 million) for the year ended 30 June 2026 as compared to RM6,102.7 million (approximately HK$10,978.3 million) in the last year, an increase of RM205.4 million (approximately HK$394.9 million) or 3.4%. The increase was due to higher contributions across all operating divisions. Hong Leong Bank Group recorded a profit before tax of RM5,480.5 million (approximately HK$10,537.7 million) for the year ended 30 June 2026 as compared to RM5,360.3 million (approximately HK$9,642.8 million) in the last year, an increase of RM120.2 million (approximately HK$231.1 mi llion) or 2.2%. This growth was driven primarily by a revenue increase of RM295.3 million (approximately HK$567.8 million) and a prior -year one -off net impact of RM8.6 million (approximately HK$16.5 million) from an associated company dilution loss and impairment write -back. These gains were partially offset by higher impairment provisions of RM63.6 million (approximately HK$122.3 million), increased operating expenses of RM34.7 million (approximately HK$66.7 million), and a lower share of profit from an as sociated company of RM85.4 million (approximately HK$164.2 million). HLA Holdings Group recorded a profit before tax of RM742.5 million (approximately HK$1,427.7 million) for the year ended 30 June 2026 as compared to RM667.2 million (approximately HK$1,200.2 million) in the last year, an increase of RM75.3 million (approximately HK$144.8 million) or 11.3%. The increase was mainly supported by rises in net investment income of RM44.8 million (approximately HK$86.1 million) and insurance service results of RM32.2 million (approximately HK$61.9 million), though slightly offset by a lower share of profit from an associated company of RM1.7 million (approximately HK$3.3 million). Hong Leong Capital Group recorded a profit before tax of RM85.4 million (approximately HK$164.2 million) for the year ended 30 June 2026 as compared to RM78.5 million (approximately HK$141.2 million) in the last year, an increase of RM6.9 million (approximately HK$13.3 million) or 8.8%. The increase was mainly due to higher contributio ns from the investment holding division and fund management division. This was partly offset by lower contributions from the investment banking division and stockbroking division.
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- 23 - Others The Group’s wholly -owned Manuka honey product producer and distributor, Manuka Health based in New Zealand, recorded improved results when compared to the prior year, primarily resulting from management’s optimisation of the business model. The business remains focused on driving sustainable growth through its premium pro duct strategy, operational efficiency, and targeted investments in strategic channels. The Bass Strait oil and gas business saw a decrease in its results for the year due to lower average crude oil prices and reduced oil production. GROUP FINANCIAL COMMENTARY Capital Management The consolidated total equity attributable to shareholders of the Company as at 30 June 20 26 amounted to HK$ 70.9 billion. Net debt, being total bank loans and other borrowings l ess cash and short-term funds as well as trading financial assets, amounted to HK$ 5.6 billion. The equity- debt ratio was 93:7 as at 30 June 2026. Liquidity and Financial Resources The Group’s total cash and short-term funds as well as trading financial assets were mostly denominated in USD (44%), HKD (21%), SGD (13%), GBP (9%) and RMB (5%) as at 30 June 2026. The Group’s total bank loans and other borrowings amounted to HK$ 29.4 billion as at 30 Jun e 2026, and were mostly denominated in SGD (80%), RMB (10%), HKD (3%), GBP (3%) and USD (1%). The Group has borrowings of HK$5.2 billion payable within one year or on demand. Certain of the Group’s bank loans and other borrowings are secured by pledges of various properties, fixed assets, trading financial assets and bank deposits with an aggregate book value of HK$41.6 billion at year end. Committed borrowing facilities available to the Group and not yet drawn as at 30 June 2026 amounted to approximately HK$10.6 billion. Interest Rate Exposure The Group’s interest rate risk arises from treasury activities and borrowings. The Group manages its interest rate exposure with a focus on reducing the Group’s overall cost of debt and exposure to changes in interest rates. The Group uses interest rate contracts to manage its interest rate exposure when considered appropriate. As at 30 June 2026, approximately 77% of the Group’s bank loans and other borrowings carried interest at floating rates and th e remaining 23% carried interest at fixed rates. The Group had outstanding interest rate contracts with a notional amount of HK$4.8 billion. Foreign Currency Exposure The Group from time to time enters into foreign exchange contracts, which are primarily over-the- counter derivatives, principally for hedging foreign currency exposure and investments. As at 30 June 20 26, there were outstanding foreign exchange contracts with a total notional amount of HK$ 3.1 billion entered into by the Group to primarily hedge foreign currency equity investments.
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- 24 - Equity Price Exposure The Group maintains an investment portfolio which mainly comprises public listed equities. Equity investments are subject to asset allocation limits. HUMAN RESOURCES AND TRAINING As at the year end, the Group had around 10, 300 staff. The Group continued to seek an optimal workforce. It is committed to providing its staff with ongoing development programmes to enhance productivity and work quality. The remuneration policy for the Group’s employees is reviewed on a regular basis. Remuneration packages are structured to take into account the level and composition of pay and market conditions in the respective countries and businesses in which the Group operates. Bonus and other merit payments are linked to the financial results of the Group and individual achievement to promote performance. In addition, share based award schemes are in place for granting share options and/or free shares to eligible employees to align th eir long term interests with those of the shareholders and for the purposes of staff motivation and talent retention. GROUP OUTLOOK Geopolitical tensions, trade policy shifts, commodity price volatility and broader macroeconomic uncertainty are expected to continue shaping the global business and operating environment. Equity markets are likely to remain sensitive to inflation and interest rate expectations, geopolitical developments and evolving investment trends, pointing to further volatility ahead. Despite this, the Group achieved results that reflect the strength and adaptability of our capabilities and strategic knowledge. Our diversified portfolio and broad geographic footprint across Western and Asian markets allow us to balance certain volatility through a wider set of opportunities, which enhances our resilience through various market cycles. Our businesses will stay focused on executing their strategic priorities, building the capacity to withstand headwinds. Supported by a strong financial p osition and balance sheet, we will continue to allocate capital judiciously to achieve excellence across the Group, whilst staying alert to structural trends and evolving market needs. Our focus remains to create lasting value for our stakeholders. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company, nor any of its other subsidiaries, purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares , if any ) during the year ended 30 June 2026. COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE The Board has adopted a Corporate Governance Code which is based on the principles set out in Appendix C1 (the “HKEX Code”) to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Company has complied throughout the year with all applicable provisions of the HKEX Code.
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- 25 - REVIEW OF FINANCIAL INFORMATION The Board Audit and Risk Management Committee reviewed the applicable accounting principles and practices adopted by the Company and discussed the auditing, risk management and internal controls and financial reporting matters including a review of the annual results announcement of the Company for the year ended 30 June 2026 with the auditors and management. The financial information in the annual results announcement of the Company for the year ended 30 June 2026 had been agreed by the Group’s external auditor, KPMG, to the amounts set out in the audited financial statements. CLOSURE OF REGISTER OF MEMBERS For ascertaining shareholders’ right to attend and vote at the forthcoming annual general meeting: Closure of register of members 10 November 2026 (Tuesday) (both days inclusive) to 13 November 2026 (Friday) Latest time to lodge transfers 4:30 p.m. on 9 November 2026 (Monday) Record date 13 November 2026 (Friday) Annual general meeting 13 November 2026 (Friday) For ascertaining shareholders’ entitlement to the proposed final dividend*: Closure of register of members 20 November 2026 (Friday) Latest time to lodge transfers 4:30 p.m. on 19 November 2026 (Thursday) Record date 20 November 2026 (Friday) Proposed final dividend payment date* 2 December 2026 (Wednesday) (*subject to shareholders’ approval at the annual general meeting) During the periods of the closure of Register of Members, no share transfers will be registered. For registration, all transfer documents accompanied by the relevant share certificates must be lodged with the Company’s Branch Share Registrar in Hong Kong, Compu tershare Hong Kong Investo r Service s Limited, at Shops 1712-16, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong before the aforesaid relevant latest time . By Order of the Board Stella Lo Sze Man Company Secretary Hong Kong, 28 September 2026 As at the date of this announcement, the Board comprises Mr. KWEK Leng Hai as Executive Chairman; Mr. Christian K. NOTHHAFT as Executive Director & CEO; Mr. KWEK Leng San as Non-executive Director; Mr. Lester G. HUANG, SBS, JP, Mr. Paul J. BROUGH and Ms. Melissa WU Mao Chin as Independent Non-executive Directors.