Earnings release
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –1– 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 liabilit y whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 九 龍 建 業 有 限 公 司 KOWLOON DEVELOPMENT COMPANY LIMITED (Incorporated in Hong Kong with limited liability) (Stock Code: 34) 2026 INTERIM RESULTS ANNOUNCEMENT HIGHLIGHTS For the six months ended 30 June 2026, the unaudited profit of the Group attributable to Shareholders amounted to HK$131 million, compared t o HK$125 million in the corresponding period of 2025, representing an increase of 4.8%. The interim earnings per share for 2026 remained at HK$0.10, the same as HK$0.10 for 2025. Interim dividend for 2026 amounts to HK$0.10 per share (2025: HK$0.10). INTERIM RESULTS AND DIVIDEND For the six months ended 30 June 2026, the unaudited profit of Kowloon Development Company Limited (the “Company”) and its subsidiaries (colle ctively, the “Group”) attributable to shareholders of the Company (“Shareholders”) amount ed to HK$131 million, compared to HK$125 million in the corresponding period of 2025, representing an increase of 4.8%. The interim earnings per share for 2026 remained at HK$0.10, the same as HK$0.10 for 2025. The fair value of the Group’s investment properties remained broadly stable in the first half of 2026, recording revaluation gains of HK$6 million, compared to revaluation losses of HK$187 million recorded in the corresponding period of 2025. Excluding the effects of such revaluation on investment properties and fair value changes on interests in the property development, the Group’s underlying profit attributable to Sharehold ers for the first half of 2026 amounted to HK$126 million, compared to HK$312 million in the corresponding period of 2025, representing a decrease of 59.6%. The underlying interim earnin gs per share for 2026 was HK$0.10, compared to HK$0.239 for 2025.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –2– The Board of Directors of the Company (the “Board”) has declared an interim dividend of HK$0.10 per share for 2026 (2025: HK$0.10). The interim di vidend will be payable on Wednesday, 6 January 2027 to shareholders whose nam es appear on the register of members of the Company on Tuesday, 15 December 2026. MARKET OVERVIEW AND BUSINESS REVIEW In the first half of 2026, the overall residential property market in Hong Kong showed signs of bottoming out, stabilising and staging a modest rec overy. Favourable factors, including the US Federal Reserve maintaining interest rate stability and local banks offering relatively low mortgage rates during the period, attracted buyers to the ma rket. At the same time, the continuous influx of top talent and robust inelastic housing demand in Hong Kong drove residential rents to extend their upward trajectory seen since late last year, further stimulating tenants to transition from renting to buying and spurring long-term investors to enter the market. According to the latest figures released by the Rating and Valuation Department, the residential property price index for June stood at 323.2, with property prices rising by over 7.8% from the beginning of the year to the end of June. During the first half of the year, th e residential property market overall exhibited momentum in both price and transaction volume growth, with purchasing power being released in an orderly manner. As for commercial buildings, the office market rema ined under pressure from new supply in the first half of the year. Fortunately, net absorptio n bounced back and vacancy rates moderated, and office rents in core business districts also edged up slightly, whereas rents in non-core business districts stayed under pressure. On the retail sho p front in the first half of the year, benefiting from the sustained recovery in inbound tourism and the revival of local consumer sentiment, leasing demand and rental levels in prime retail di stricts stayed relatively stable, with modest growth recorded in certain new leases. In Mainland China, the Central Government introduce d a series of policies to stabilise the real estate market, aimed at exerting a positive impact on the market. During the period, transaction volumes of secondary residential properties in majo r cities picked up. Nevertheless, overall market confidence remained at a low level and was i n a stage of gradual recovery. It is hoped that more proactive policy measures on the real est ate front will be rolled out by the Central Government in the second half of 2026 to further co nsolidate the foundation for the market to bottom out and stabilise.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –3– Development Property Sales In Hong Kong, Upper Manor, a residential and commercial development project located on High Street in Sai Ying Pun in which the Group holds a 6 0% interest, was completed with the Occupation Permit issued in April 2026. For the pe riod under review, 60 of the total 111 sold- out residential units at the project were delivered to buyers. Total sale proceeds from the Group’s development projects of approximately HK$456 millio n were recognised, which included the Group’s attributable share of sale proceeds of appr oximately HK$334 million from the 60 delivered units at Upper Manor. At present, the re maining 51 sold residential units at Upper Manor have also been delivered, and the correspondi ng sale proceeds will be recognised in the second half of the year. In Mainland China, total presales/sales from the Gr oup’s development projects amounted to approximately RMB437 million for the six months end ed 30 June 2026, with presales/sales attributable to the Group of approximately RMB377 million based on its interests. Property Development As at 30 June 2026, the Group’s landbank for development amounted to approximately 2.7 million sq m of attributable gross floor area (“GFA”). The Group’s major property projects under planning and development are set out as follows: Major Property Projects under Planning and Development Property Project District/City Usage Approx. Total Site Area (sq m) Approx. GFA (sq m) Approx. GFA Booked ※ (sq m) Group’s Interest Project Status Expected Date of Completion Hong Kong Clear Water Bay Road Ngau Chi Wan, Kowloon Residential & commercial 22,400 201,000 — 100% Superstructure works in progress 2027 – 2029 Fuk Chak Street Tai Kok Tsui, Kowloon Residential & commercial 500 4,600 — 50% Foundation works in progress First quarter 2029 Mainland China Le Cove City (Shenyang) 江灣城 （瀋陽） Hun Nan District, Shenyang Residential & commercial 165,000 630,000 381,000 100% Modification of planning for Phase 5A (approx. GFA of 40,000 sq m) in progress Phase 5A to be determined The Gardenia (Shenyang) 翠堤灣 （瀋陽） Shenhe District, Shenyang Residential & commercial 1,100,000 2,000,000 701,000 100% Design approval for Phase 4 (approx. GFA of 249,000 sq m) in progress Phase 4 to be determined
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –4– Major Property Projects under Planning and Development (Continued) Property Project District/City Usage Approx. Total Site Area (sq m) Approx. GFA (sq m) Approx. GFA Booked ※ (sq m) Group’s Interest Project Status Expected Date of Completion Mainland China (Continued) The Lake (Foshan) 山語湖 （佛山） Nanhai District, Foshan Residential & commercial 4,021,000 1,600,000 1,085,000 50% Construction works for Phase 5 (approx. GFA of 83,000 sq m) completed Remaining development to be determined City Plaza (Tianjin) 城市廣場 （天津） Hedong District, Tianjin Residential, commercial & office 136,000 850,000 477,000 49% Superstructure works for Phase 3B (approx. GFA of 280,000 sq m) in progress Phase 3B end-2027 Yangpu (Shanghai) 楊浦 （上海） Yangpu District, Shanghai Residential, commercial & office 21,000 75,000 — 40% Design modification plan in progress End-2029 Polytec Luxury Mansion (Shanxi) 保利達 •貴府 （山西） Jiexiu Residential & commercial 181,000 463,000 81,000 100% Construction of Phase 2 (approx. GFA of 143,000 sq m) residential segment expected to commence in third quarter 2026 Phase 2 residential segment 2028 Hengda Guangchang (Zhuhai) 亨達廣場 （珠海） Xiangzhou District, Zhuhai Commercial, office & apartment 38,000 199,000 — 70% Interior fitting-out works for Phase 1 (approx. GFA of 66,000 sq m) in progress Phase 1 third quarter 2026 ※ Approx. GFA booked and recognised in the financial statements. Note: A property project in Hong Kong, namely Upper Manor, was completed during the period under review. Property Investment Gross rental income generated from the Group’s inve stment property portfolio in Hong Kong amounted to HK$131 million in the first six months of 2026, compared to HK$132 million in the corresponding period of 2025, representing a decrease of 0.8%.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –5– PROSPECTS In Hong Kong, structural works for the superstructure of the Group’s Phase 1 development located at No. 33 Clear Water Bay Road are approaching comp letion. Sales preparations are currently in place, with the Group striving to launch sales t o the market by the end of the third quarter of this year. As the Group’s current core development project with a GFA of over 2,000,000 sq ft, it will provide more than 2,000 residential units a longside a large modern shopping arcade, representing a rare large-scale new development in the district. Situated in a prime location in East Kowloon with excellent transport connectivity, the project is directly connected to Choi Hung MTR Station and is expected to be well received by the market. The Phase 1 development is scheduled for completion and delivery to buyers between the second and third quarters of 2027. Foundation works for the Group’s 50%-owned joint de velopment project located on Fuk Chak Street in Tai Kok Tsui are currently in progress. In Mainland China, the design plan for the Phase 4 development of The Gardenia in Shenyang is currently in the approval stage. In Jiexiu, Shanxi, over 700 residential units in th e Phase 1 development of Polytec Luxury Mansion have been substantially sold out, with satisfactory sales results, while planning approval for the Phase 2 development has been granted, under which construction of the residential segment is scheduled to commence in the third quarter of 2026, with completion expected in 2028. In Zhuhai, the Phase 1 development of Hengda Guangc hang, comprising apartments and three- storey retail shops, was granted the Completion and Acceptance Filing Certificate in July 2026. The retail segment is close to completing all presa les, while interior fitting-out works for the apartments are currently underway. In-depth collab oration with a renowned hotel brand to upgrade part of the project area into a hotel is planned, which is expected to provide long-term and stable income in the future. The sale of the remaining units of the Group’s join t development projects in Foshan and Tianjin will continue during the year. The construction wo rks for the Phase 5 development of The Lake (Foshan) have been completed. As for City Plaza (T ianjin), the superstructure works for the Phase 3B development are in progress, with completion expected by the end of 2027. The Yangpu project in Shanghai is the Group’s 40%-o wned joint development project. The preliminary construction licence has been obtained, site formation works have also been completed and the design modification plan is currently underway. Le Cove City, the Group’s development project in Wu xi, has been fully completed, with sales activities progressing steadily. All of the Group’s projects in Mainland China are c urrently advancing in a prudent manner, with sales of the remaining residential units, retail shops and parking spaces continuing.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –6– In the first half of 2026, the Group recorded only modest profit growth due to fewer sales projects eligible for revenue recognition in Hong Kong. Loo king ahead to the second half of the year, following the phased sales launch of the Clear Wate r Bay Road development project, if sales proceed smoothly, the substantial cash inflows generated are expected to significantly improve the Group’s gearing ratio and further drive its future earnings growth. Barring unforeseen circumstances, the Group anticip ates that in Hong Kong, sales revenue from Upper Manor (which is fully sold out with an Occupation Permit issued), together with the Group’s rental income, will serve as the primary sources of results and revenue in the second half of 2026. I hereby express my deepest gratitude to the member s of the Board for their foresight and full support, as well as our staff for their dedication and hard work!
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –7– INTERIM RESULTS The unaudited consolidated results of the Group for the six months ended 30 June 2026 together with the comparative figures for 2025 are as follows: Consolidated Statement of Profit or Loss Six months ended 30 June 2026 2025 Note HK$’000 HK$’000 (unaudited) (unaudited) Revenue 3 1,186,355 2,428,801 Cost of sales (717,663 ) (1,275,466) Other revenue 22,488 13,276 Other net income/(expenses) 78,965 (582) Depreciation and amortisation (5,680 ) (6,184) Staff costs (250,476 ) (302,600) Selling, marketing and distribution expenses (62,610 ) (359,402) Other operating expenses (55,509 ) (70,832) Fair value changes on investment properties 6,199 (186,798) Fair value changes on interests in property development (762) (293) Profit from operations 201,307 239,920 Finance costs 4( a) (37,996 ) (73,965) Share of profits of associated companies 9,095 6,315 Share of (losses)/ profits of joint ventures (2,345) 23,531 Profit before taxation 4 170,061 195,801 Income tax 5 (41,764 ) (80,680) Profit for the period 128,297 115,121 Attributable to: Shareholders of the Company 130,697 124,556 Non -controlling interests (2,400 ) (9,435) Profit for the period 128,297 115,121 Earnings per share – Basic and Diluted 6 HK$0.10 HK$0.10
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –8– Consolidated Statement of Profit or Loss and Other Comprehensive Income Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Profit for the period 128,297 115,121 Other comprehensive income for the period Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of financial statements of subsidiaries outside Hong Kong 40,970 20,012 Share of other comprehensive income of joint ventures and associated companies 132,031 79,171 173,001 99,183 Total comprehensive income for the period 301,298 214,304 Attributable to: Shareholders of the Company 301,900 223,038 Non -controlling interests (602 ) (8,734) Total comprehensive income for the period 301,298 214,304
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –9– Consolidated Statement of Financial Position At 30 June 2026 At 31 December 2025 Note HK$’000 HK$’000 (unaudited) (audited) Non -current assets Investment properties 13,267,178 13,186,630 Property, plant and equipment 206,546 209,114 Interests in property development 8 761,306 762,068 Interest in joint ventures 1,654,309 1,605,797 Interest in associated companies 2,565,916 2,442,825 Trade and other receivables 9 65,892 65,819 Loans and advances 9 109,152 147,384 Deferred tax assets 283,269 294,942 18,913,568 18,714,579 Current assets Inventories 19,775,774 19,390,724 Interests in property development 8 780,099 780,099 Trade and other receivables 9 622,164 589,982 Loans and advances 9 8,142 14,818 Other financial assets 7,012 7,947 Amount due from a related company – 758,767 Amount due from a joint venture 56,675 56,675 Cash and bank balances 1,159,651 1,172,587 22,409,517 22,771,599
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –10– Consolidated Statement of Financial Position (continued) At 30 June 2026 At 31 December 2025 Note HK$’000 HK$’000 (unaudited) (audited) Current liabilities Trade and other payables 10 2,356,390 2,525,255 Amount due to an associated company 45,616 43,865 Bank loans 11,472,828 1,685,978 Current taxation 288,238 274,018 14,163,072 4,529,116 Net current assets 8,246,445 18,242,483 Total assets less current liabilities 27,160,013 36,957,062 Non -current liabilities Loan from a related company 2,235,747 2,112,220 Bank loans 6,835,246 16,840,811 Deferred tax liabilities 420,831 447,596 9,491,824 19,400,627 NET ASSETS 17,668,189 17,556,435 Capital and reserves Share capital 9,307,169 9,307,169 Reserves 8,2 77,575 8,158,544 Total equity attributable to the shareholders of the Company 17,584,744 17,465,713 Non -controlling interests 83,445 90,722 TOTAL EQUITY 17,668,189 17,556,435
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –11– Notes 1 BASIS OF PREPARATION The interim results set out in the announcement do not constitute the Group’s interim report for the s ix months ended 30 June 2026 but are extracted from that report. The unaudited interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard (“HKAS”) 34, “In terim financial reporting”, issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA” ). The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2025 annual financial statements, except for the account ing policy changes that are expected to be reflecte d in the 2026 annual financial statements. Details of these changes in accounting policies are set out in note 2. The preparation of an interim financial report in c onformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect t he application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates. The financial information relating to the financial year ended 31 December 2025 that is included in th is announcement of interim results as comparative info rmation does not constitute the Company’s statutory annual consolidated financial statements for that financia l year but is derived from those financial statemen ts. Further information relating to these statutory financial s tatements disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap.622) is as follows: The Company has delivered the financial statements for the year ended 31 December 2025 to the Registra r of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance. The Company’s auditor has reported on those financial statements. The auditor’s report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; a nd did not contain a statement under sections 406(2), 407(2) or (3) of the Companies Ordinance. 2 CHANGES IN ACCOUNTING POLICIES The HKICPA has issued a number of amendments to HKF RS Accounting Standards that are first effective fo r the current accounting period. Of these, only the amend ments to HKFRS 9, “Financial instruments” and HKFRS 7, “Financial instruments: Disclosures – Amendments to the classification and measurement of financial instruments, are relevant to the Group’s financial statements”. The Group has not applied any new standard or inter pretation that is not yet effective for the current accounting period.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –12– 3 SEGMENT REPORTING The Group manages its business by a mixture of both business lines and geography. In a manner consistent with the way in which information is reported internally to the Group’s top management for the purposes of asse ssing segment performance and allocating resources between segments, the Group has identified the following reportable segments. – Property development segment (Hong Kong/Mainland China): the development and sale of properties and interests in property development. Given the import ance of the property development division to the Gr oup, the Group’s property development business is segreg ated further into two reportable segments on a geographical basis. – Property investment segment: the leasing of prope rties to generate rental income and to gain from th e appreciation in the properties’ values in the long term. – Other businesses segment: mainly includes the pro vision of property management services, the provisi on of finance services and treasury operations. Revenue comprises mainly rental income from propert ies, gross proceeds from sale of properties, income from interests in property development, property management service income and interest income. Reportable segment profit represents profit before taxation by excluding fair value changes on interests in property development and investment properties, finance costs and head office and corporate income/expenses. Reportable segment assets include all tangible and current assets with the exception of deferred tax assets, cash and bank balances and other corporate assets.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –13– 3 SEGMENT REPORTING (CONTINUED) (a) Segment results and assets Information regarding the Group's reportable segmen ts as provided to the Group's top management for th e purposes of resource allocation and assessment of segment performance for the period is set out below. Six months ended 30 June 2026 Property development Total Hong Kong Mainland China Property investment Others (Remark 1) HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Revenue 1,186,355 455,690 360,880 131,231 238,554 Reportable segment profit 250,237 123,796 5,508 119,716 1,217 Fair value changes on investment properties 6,199 – – 6,199 – Fair value changes on interests in property development (762) – (762) – – Head office and corporate expenses (47,617) Finance costs (37,996) Profit before taxation 170,061 Share of profits of associated companies 9,095 – 9,095 – – Share of (losses)/profits of joint ventures (2,345) – (2,384) – 39 Remark 1: Others included revenue from property management services of HK$162,888,000 (six months ended 30 June 2025: HK$194,268,000) and the relevant segment prof it of HK$907,000 (six months ended 30 June 2025: segment loss of HK$19,541,000) respectively.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –14– 3 SEGMENT REPORTING (CONTINUED) (a) Segment results and assets (continued) Six months ended 30 June 2025 Property development Total Hong Kong Mainland China Property investment Others (Remark 1) HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Revenue 2,428,801 1,419,027 600,249 132,151 277,374 Reportable segment profit/(loss) 498,697 364,467 46 ,460 102,532 (14,762) Fair value changes on investment properties (186,798) – – (186,798) – Fair value changes on interests in property development (293) – (293) – – Head office and corporate expenses (41,840) Finance costs (73,965) Profit before taxation 195,801 Share of profits of associated companies 6,315 – 6,315 – – Share of profits of joint ventures 23,531 – 23,531 – – At 30 June 2026 Property development Total Hong Kong Mainland China Property investment Others (Remark 2) HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Reportable segment assets 39,809,549 16,097,254 9,921,505 13,273,635 517,155 Deferred tax assets 283,269 Cash and bank balances 1,159,651 Head office and corporate assets 70,616 Total assets 41,323,085 Interest in associated companies 2,565,916 – 2,565,916 – – Interest in and amount due from joint ventures 1,710,984 130,267 1,580,376 – 341 Remark 2: Others included reportable segment assets of proper ty management services amounting to HK$133,558,000 (31 December 2025: HK$120,192,000).
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –15– 3 SEGMENT REPORTING (CONTINUED) (a) Segment results and assets (continued) At 31 December 2025 Property development Total Hong Kong Mainland China Property investment Others (Remark 2) HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Reportable segment assets 39,949,338 15,587,295 10, 609,625 13,203,815 548,603 Deferred tax assets 294,942 Cash and bank balances 1,172,587 Head office and corporate assets 69,311 Total assets 41,486,178 Interest in associated companies 2,442,825 – 2,442, 825 – – Interest in and amount due from joint ventures 1,662,472 133,017 1,528,911 – 544 4 PROFIT BEFORE TAXATION Profit before taxation is arrived at after charging/(crediting) the amounts as set out below. (a) Finance costs Six months ended 30 June 2026 2025 HK$’000 HK$’000 Interest on bank loans 305,786 377,164 Interest on loan from a related company 34,899 45,692 Less: Amount capitalised (Remark) (302,689) (348,891) 37,996 73,965 Remark: Borrowing costs were capitalised at rates of 2.98% – 4.18% (six months ended 30 June 2025: 1.89% – 6.9 8%) per annum.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –16– 4 PROFIT BEFORE TAXATION (CONTINUED) (b) Other items Six months ended 30 June 2026 2025 HK$’000 HK$’000 Depreciation and amortisation 5,680 6,184 Interest income (8,464) (12,095) 5 INCOME TAX Taxation in the consolidated statement of profit or loss represents: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Current tax Provision for profits tax – Hong Kong 37,045 75,780 – Outside Hong Kong 13,161 9,188 50,206 84,968 Land appreciation tax (“LAT”) 593 20 Withholding tax - 13,830 Deferred tax (9,035) (18,138) 41,764 80,680 The provision for Hong Kong Profits Tax is calculat ed at 16.5% (six months ended 30 June 2025: 16.5%) of the estimated assessable profits for the six months ended 30 June 2026. Tax levied in jurisdictions outsi de Hong Kong is charged at the appropriate current rates of taxation ruling in relevant jurisdictions. Under the Provisional Regulations on LA T in Mainlan d China, all gains arising from the transfer of rea l estate property in Mainland China are subject to LA T at progressive rates ranging from 30% to 60% on the appr eciation of land value, being the proceeds of sale of properties less deductible expenditure including cost of land use rights, borrowing costs and all property development expenditure.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –17– 6 EARNINGS PER SHARE (a) Basic earnings per share The calculation of basic earnings per share are based on the profit attributable to shareholders of the Company of HK$130,697,000 (six months ended 30 June 2025: HK$124,556,000) and the weighted average number of ordinary shares in issue during the period of 1,306,206,058 (six months ended 30 June 2025: 1,306,206,058). (b) Diluted earnings per share There were no dilutive potential shares in existence during the six months ended 30 June 2026 and 2025. 7 Dividends Six months ended 30 June 2026 2025 HK$’000 HK$’000 Interim dividend declared after the interim period of HK$0.10 (six months ended 30 June 2025: HK$0.10) per share 130,621 130,621 The interim dividend declared after the interim per iod has not been recognised as a liability at the i nterim period end date. 8 INTERESTS IN PROPERTY DEVELOPMENT Interests in property development represent the Gro up’s interests in the development of various proper ties located at Huizhou and Zhuhai in Mainland China under co-in vestment agreements with a related company, Polytec Holdings International Limited. As at 30 June 2026, interests in property development of HK$780,099,000 (31 December 2025: HK$780,099,000) was expected to be recoverable within one year and was classified as current assets.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –18– 9 TRADE AND OTHER RECEIV ABLES/LOANS AND ADV ANCES The following is an ageing analysis (based on the due date) of trade receivables and loans and advances (net of loss allowance): At 30 June 2026 At 31 December 2025 HK$’000 HK$’000 Current 230,851 290,800 Within 3 months 32,574 34,424 3 months to 6 months 1,860 608 More than 6 months 12,111 18,318 Trade receivables and loans and advances 277,396 344,150 Utility and other deposits 15,226 14,587 Prepaid tax 96,683 89,393 Other receivables and prepayments 416,045 369,873 805,350 818,003 Representing: Non -current assets 175,044 213,203 Current assets 630,306 604,800 805,350 818,003 The Group maintains a defined credit policy. An age ing analysis of trade receivables and loans and adv ances is prepared on a regular basis and is closely monitore d to minimise any credit risk associated with recei vables and loans and advances. 10 TRADE AND OTHER PAYABLES The following is an ageing analysis (based on the due date) of trade payables: At 30 June 2026 At 31 December 2025 HK$’000 HK$’000 Not yet due or on demand 1,376,862 1,504,405 Within 3 months 129 243 Trade payables 1,376,991 1,504,648 Rental and other deposits 81,864 79,380 Other payables and accrued expenses 456,461 434,867 Contract liabilities – deposits received on sale of properties 441,074 506,360 2,356,390 2,525,255
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –19– FINANCIAL REVIEW Financial resources and bank borrowings As at 30 June 2026, the Group’s total bank borrowin gs amounted to HK$18,308 million, a reduction from HK$18,527 million in 2025, comprisin g of HK$11,473 million repayable within one year and HK$6,835 million repayable after one y ear. Included in short-term borrowings is a syndicated project loan granted for the development of the Clear Water Bay Road project. This loan has been reclassified as current liabilities d ue to its maturity falling in the first half of 202 7. The Group has maintained proactive, continuous and close communication with the syndicate banks. Benefiting from the project’s prime locatio n with direct access to key transportation hubs, with confidence in the current residential market i n Hong Kong together with the Group’s long and well established creditability, the syndicate b anks remain supportive of the loan facility. Looking ahead, upon the launch of presales for Phase 1 of the Clear Water Bay Road project, the Group’s financial position will be further strength ened and the management is confident to complete the refinancing smoothly before the maturity of the said syndicated project loan. With cash and bank balances totalling HK$1,160 mill ion, the Group’s net bank borrowings have reduced to HK$17,148 million as at 30 June 2026. L oan from a related company is recorded at HK$2,236 million as at the same date. The Group’s gearing ratio (calculated on the basis of net bank borrowings over total equity) was 97.1% as at 30 June 2026 (31 December 2025: 98.8%). During the period, sales of the property projects i n Hong Kong contributed cash inflows of approximately HK$421 million to the Group, mainly f rom sales and presales of Manor Hill and Upper Manor. Furthermore, the Group recorded appro ximately HK$367 million cash inflows from presales and sales of various development projects in Mainland China, mainly from sales of Le Cove City, Wuxi and Polytec Luxury Mansion, Shanxi. Over the past few years, the Group has continued to prioritise the reduction of its gearing ratio as part of its financial management strategy. To supp ort this objective, the Group has implemented various initiatives, including the disposal of non- core assets. During the years, the Group disposed of certain offices, shops and car parking spaces in its residential projects in Mainland China. In total, non-core assets amounting to over HK$700 million were realised during the years, further strengthening the Group’s financial position. By divesting these non-core assets, the Group is able to sharpen its focus on core business, which not only helps to reduce debt levels but also enhances cash flow and supports long-term value creation for shareholders. In addition, with the Group’s upcoming launch of presales for its large-scale residential project on Clear Water Bay Road in Hong Kong, together with the presales a nd sales of various projects in Mainland China, further cash inflows are expected to be gene rated in the near term. These cash inflows will further strengthen the Group’s liquidity and overall financial position, and the Group’s gearing ratio is expected to improve in due course. During the period, the Group has advanced its development projects in Hong Kong and Mainland China and expended a total of approximately HK$869 million for construction costs.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –20– All the Group’s borrowings are arranged on a floating rate basis. The Group will closely monitor and manage its exposure to interest rate fluctuatio ns and will consider engaging in relevant hedging arrangements when appropriate. With the investments in Mainland China, the Group is exposed to exchange fluctuations in RMB. Since revenue generated from the development projec ts in Mainland China funds local development costs which are also denominated in RMB , it serves as a natural hedge against the exchange rate risk of RMB. With the financing facilities in place, recurrent i ncome from investment properties, cash inflows from presales/sales of the Group’s development proj ects and the financial support from a related company, the Group has sufficient financial resourc es to satisfy its commitments and future funding requirements. Capital commitments As at 30 June 2026, the Group had commitments mainl y in connection with the Group’s investment properties amounting to HK$231 million. Pledge of assets As at 30 June 2026, properties having a value of HK $27,276 million and deposits of HK$26 million were pledged to banks and insurance compani es mainly to secure banking facilities and performance bonds extended to the Group. Contingent liabilities As at 30 June 2026, the Group had given guarantees to financial institutions in respect of performance bonds entered into by a subsidiary to the extent of HK$40 million. OTHER INFORMATION Review of Interim Financial Report The Audit Committee of the Company has reviewed the unaudited interim financial report of the Group for the six months ended 30 June 2026. The G roup’s independent auditor, KPMG, Certified Public Accountants, has conducted a review of the interim financial report in accordance with Hong Kong Standard 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.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –21– Compliance with the Corporate Governance Code Throughout the six months ended 30 June 2026, the C ompany has complied with all the code provisions set out in Part 2 of Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listi ng Rules”), with the exception of Code Provisions C.2.1 and F.1.3 as explained below: Code Provision C.2.1 Mr Or Wai Sheun has performed the combined role as the chairman of the Board and the chief executive taking charge of the overall operations o f the Group. The reason for deviation from the code provision was disclosed in the Annual Report 2025. Code Provision F.1.3 Mr Or Wai Sheun, the chairman of the Board, was una ble to attend the Annual General Meeting of the Company held on 3 June 2026 (the “2026 AGM”) due to the need for eye treatment and care. In his absence, an Executive Director of the Company was invited to chair the 2026 AGM and was available to answer questions at the 2026 AGM. Purchase, Sale or Redemption of the Company’s Listed Securities Neither the Company nor any of its subsidiaries has purchased, sold or redeemed any listed securities of the Company during the six months ended 30 June 2026. Closure of Register of Members For the purpose of determining shareholders’ entitl ement to the interim dividend, the register of members of the Company will be closed from Monday, 14 December 2026 to Tuesday, 15 December 2026, both dates inclusive. During the af orementioned period, no transfer of shares will be registered. In order to qualify for the in terim dividend, all transfer forms accompanied by the relevant share certificates must be lodged w ith the Company’s share registrar, 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 pm (Hong Kong time) on Friday, 11 December 2026. The interim dividend will be payable to shareholders whose names appear on the register of members of the Company on Tuesday, 15 December 2026, being the record date for determination of entitlement to the interim dividend.
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KOWLOON DEVELOPMENT COMPANY LIMITED – Interim Resul ts Announcement 21 August 2026 –22– Publication of Interim Report The Interim Report 2026 containing all the informat ion as required by the Listing Rules will be published on the website of “HKEXnews” at www.hkexn ews.hk and the website of the Company at www.kdc.com.hk by the end of September 2026, whi le printed copies will be sent to Shareholders as requested. By Order of the Board Kowloon Development Company Limited Or Wai Sheun Chairman Hong Kong, 21 August 2026 As at the date of this announcement, the Directors of the Company are Mr Or Wai Sheun (Chairman), Mr Lai Ka Fai, Mr Or Pui Kwan and Mr La m Yung Hei as Executive Directors; Ms Ng Chi Man and Mr Yeung Kwok Kwong as Non-executive Directors; and Mr Li Kwok Sing, Aubrey, Mr Lok Kung Chin, Hardy and Mr Hsu Duff Kar man as Independent Non-executive Directors.