Earnings release
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– 1 – * For identification purposes only 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. FAR EAST CONSORTIUM INTERNATIONAL LIMITED ʮ̡ * (Incorporated in the Cayman Islands with limited liability) Website: http://www.fecil.com.hk (Stock Code: 35) USD360,000,000 Senior Guaranteed Perpetual Capital Notes (Stock Code: 5781) ANNOUNCEMENT OF RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 BUSINESS UPDATE • For the first six months ended 30 September 2025 (“1H FY2026”), the Group continued its strategic initiatives, including the monetisation of non-core assets and divestment of non-core businesses, which enhanced liquidity and improved capital deployment efficiency. These initiatives reflect management’s commitment to maintaining financial discipline and positioning the Group for sustainable growth in a volatile global landscape. • As at 30 September 2025, the Group’s total bank loans, notes and bonds decreased by HK$1,426 million to HK $23,945 million; and net debt decreased by HK $1,246 million to HK $20,247 million, reflecting improved capital management and disciplined financial execution. The adjusted net gearing ratio (i) , a non-GAAP financial measure, was reduced to 64.9%, further strengthening the Group’s statement of financial position. • In 1H FY2026, revenue decreased by 27.4% to approximately HK $3.8 billion as compared to the six months ended 30 September 2024 (“1H FY2025”). Adjusted revenue (i), a non-GAAP financial measure, reflecting the Group’s revenue together with the attributable revenue contributions from joint venture (“JV”) property development projects, decreased by 5.9% to approximately HK$4.9 billion. The main reason was that fewer residential property development was completed and settled compared with the same period last year. Despite the lower recognition of revenue from property development, performance from the Group’s core businesses remained largely similar as compared to 1H FY2025, demonstrating resilience and stability amidst market fluctuations.
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– 2 – • The Group’s adjusted revenue from property development (i), a non-GAAP financial measure, recorded a decrease of 10.3% to approximately HK $3,227 million for 1H FY2026, as compared with 1H F Y2025. Key revenue contributors include Aspen at Consort Place in London, United Kingdom (“UK”) which completed in July 2025, with handover activities continuing throughout 1H F Y2026; and Victoria Riverside (Tower B, Tower C and Bromley Street) in Manchester, the UK which completed and commenced the handover process in July 2025. Sales of completed inventories, including West Side Place in Melbourne, Australia, as well as Mount Arcadia in Hong Kong, were also key contributors to revenue during the 1H FY2026. JV property development projects, including The Pavilia Forest in Hong Kong and Dorsett Place Waterfront Subang (Towers A and B) in Malaysia were completed in August and September 2025, respectively, with both commencing handover process in September 2025. Meanwhile, Queen’s Wharf Residences (Tower 4) in Brisbane, Australia, continued ongoing handover progress and contributed to adjusted revenue from property development (i), a non-GAAP financial measure. • As at 30 September 2025, the cumulative attributable presales value of properties under development and unbooked contracted sales stood at approximately HK $9.3 billion. The Group launched a property development, 640 Bourke Street, in Melbourne in late March 2025. The project received a measured level of market interest, indicating steady demand for well-considered residential offerings within the central business district (“CBD”). In July 2025, the Group relaunched the remaining units of Queen’s Wharf Residences (Tower 5) with a further price increment and received a positive response. The Group continues to accelerate the completion of its development pipeline, including Victoria Riverside (Tower A) in Manchester, the UK, which is expected to be completed in 1H FY2027 and to contribute positively to revenue and cash flow. • Revenue from the Group’s hotel operations and management business increased by 9.6% to approximately HK$1,070 million for 1H FY2026, as compared with the same period in the prior year. The increase was mainly contributed by Dorsett Kai Tak in Hong Kong and the continued resilient performance in Malaysia and Australia. • Dorsett Canary Wharf London soft-opened in September 2025. Located in London’s CBD and the heart of Canary Wharf, the hotel offers 237 contemporary guest rooms and food and beverage services. In the same month, the Group opened HubX Shanghai, its first hostel in the city. The 115-room hostel is adjacent to Shanghai University. • Over the next 12 months, the Group is expected to open Dorsett Perth in Australia. This addition is anticipated to strengthen the Group’s recurring income portfolio and support long-term growth in both revenue and profitability.
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– 3 – • Revenue from car park operations and facilities management amounted to approximately HK $343 million, representing a decrease of 9.7% as compared with 1H FY2025. The decrease was primarily attributable to the discontinuation of underperforming assets and monetised matured car parks which is part of the Group’s strategic initiatives to continue to enhance the quality of its car park portfolio. In parallel, the Group secured new contracts in both car park operations and facilities management, contributing to portfolio expansion and supporting improvements in operational efficiency. • The Group’s gaming business is operated under Palasino Holdings Limited (“Palasino”; Stock Code: 2536; collectively with its subsidiaries, the “Palasino Group”). The Group maintained a controlling stake of 71.62% in Palasino as at 30 September 2025. Revenue from the Gr oup’s gaming business for 1H FY 2026 increased by 11.4% to appr oximately HK $218 million as compared with the same period last year. This was primarily driven by increased visits following successful marketing campaign launched in Austria. • The integrated resort under the joint developments at Queen’s Wharf Brisbane, Brisbane, Queensland, Australia (the “QWB Project”), in which the Group owns a 25% stake, had its soft opening on 29 August 2024. A hotel and gaming facilities with premium gaming rooms were unveiled with positive responses. Other facilities such as food and beverage outlets, retail and dining spaces and two hotels will be launched in phases in the near future. • On 12 August 2025, the Group, together with Chow Tai Fook Enterprises Limited (“CTFE”) (“JV Partner”, and collectively with the Group, the “JV Partners”) entered into an implementation deed (“Implementation Deed”) with The Star Entertainment Group (“The Star”) which will, subject to satisfaction of relevant conditions precedent, result in increasing the Group’s stake to 50% of the QWB Project integrated resort in an orderly fashion and in accordance with agreed transition principles. Destination Brisbane Consortium (“DBC”), the entity responsible for developing the QWB Project, is currently owned 50% by The Star, 25% by CTFE, and 25% by the Group. Upon completion of the transaction, DBC will be jointly owned by the JV Partners, with each holding a 50% interest. For details, please refer to the announcements of the Company dated 12 August 2025 and 17 November 2025. • The Group continued to implement its deleveraging strategy through the monetisation of non-core assets and businesse s, with the objective of reducing debt and reallocating capital to projects with higher return p otential. In 1H FY2026, the Group monetised approximately HK $1.0 billion of non-core assets and businesses in aggregate. As at 30 September 2025, total bank loans, notes and bonds decreased by approximately HK $1,426 million or 5.6% to HK$23,945 million, reflecting the Group’s disciplined approach to capital management.
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– 4 – • As part of these initiatives, the Group completed the disposal of its interest in a mortgage portfolio in Hong Kong on 27 May 2025 for an initial consideration of approximately HK $485 million. The portfolio was comprised of mortgage loans secured on Hong Kong properties developed by the Group. In connection with the disposal, the Group entered into a participation agreement in May 2025, under which it retains an economic interest in the mortgage portfolio. Taking into account the transaction under the participation agreement, the net proceeds received by the Group amounted to approximately HK $344 million. For details, please refer to the announcements of the Company dated 22 May 2025, 27 May 2025 and 1 August 2025. • In addition, on 2 July 2025, the G roup completed the sale of its 53.21% stake in BC Investment Group Holdings Limited (“BC Invest”) for an initial consideration of approximately AU D106 million (equivalent to approximately HK $513 million). Simultaneously, all outstanding Class R debentures of approximately AUD8.3 million and Class S participating shares of approximately GBP2.3 million held by the Group were redeemed by BC Invest or its subsidiaries prior to or in conjunction with the completion of the transaction. For details, please refer to the announcements of the Company dated 28 February 2025, 2 May 2025 and 2 July 2025. FINANCIAL HIGHLIGHTS • The adjusted revenue (i) , a non-GAAP financial measure, decreased by 5.9% to HK$4,940 million in 1H FY2026. • The Group’s profitability for the period was primarily impacted by various impairment losses during the period, partially offset by growth in recurring income business, lower finance costs and the gain from disposal of its stake in BC Invest. As a result, the Group’s net loss attributable to shareholders was recorded at HK $988 million in 1H F Y2026. Impairment losses that affected the Group’s profitability include: – impairment loss on properties for sale amounted to approximately HK $193 million; – impairment loss recognised on deposits for acquisition of property, plant and equipment amounted to approximately HK$88 million; – share of impairment loss recognised by a JV of approximately HK$530 million; and – share of impairment loss recognised by an associate of approximately HK$110 million. • As at 30 September 2025 the adjusted cash profit (i), a non-GAAP financial measure, increased by 509.8% to appr oximately HK $203 million and the Group’s adjusted total equity (i) , a non-GAAP financial measure, slightly decreased by 1.9% to approximately HK$31,192 million. • Loss per share in 1H F Y2026 increased by 18.3% to HK32.3 cents. The Board resolved not to declare an interim dividend for 1H FY2026 (1H FY2025: HK1.0 cent per share).
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– 5 – • The Group has continued to prudently manage its capital structure by refinancing some of its shorter-term debts through the bank market and continued to monetise its non-core assets and businesses in an effort to reduce its debt level and optimise the Group’s capital structure. Adjusted net gearing ratio (i) , a non-GAAP financial measure, decreased to 64.9% and proforma adjusted net gearing ratio, before impairment loss on properties for sale, impairment loss under recognised on deposits for acquisition of property, plant and equipment, share of impairment loss recognised by a JV and share of impairment loss recognised by an associate, decreased to 63.0%, reflecting improved capital management and disciplined financial execution. Net debt to adjusted total assets (i), a non-GAAP financial measure, was maintained at a healthy level of 34.1% as at 30 September 2025. • The Group’s net debt dropped to approximately HK$20.2 billion as at 30 September 2025 as compared with approximately HK $21.5 billion as at 31 March 2025. The Group’s liquidity position stood at approximately HK$3.7 billion, with a comfortable level of cash and marketable securities available as at 30 September 2025. Furthermore, the Group had five unencumbered hotel assets valued at HK$1.3 billion as at 30 September 2025. • Adjusted net asset value per share (i), a non-GAAP financial measure, decreased by 2.0% to approximately HK$9.13 as at 30 September 2025 as compared to HK$9.32 as at 31 March 2025. POST PERIOD END EVENT • In November 2025, the Group entered into a non-binding term sheet to dispose certain interest in a company which indirectly holding Ritz-Carlton Perth, and received the first instalment of AUD20 million. For details, please refer to the announcement of the Company dated 11 November 2025. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) HIGHLIGHTS • As a Hong Kong-listed company, the Group remains committed to complying with evolving ESG disclosure requirements, recognising its responsibility to foster sustainable development and deliver long-term value to stakeholders. To enhance transparency in environmental data, the Group has adopted an automated carbon reporting tool to improve the accuracy and efficiency of emissions monitoring. Looking ahead, the Group will continue to embed ESG considerations into its strategic planning and risk management frameworks, leveraging sustainable finance and digital innovation to advance its decarbonisation journey and strengthen climate resilience. Note: (i) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below.
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– 6 – INTERIM RESULTS The board of directors (the “Board”) of Far East Consortium International Limited (the “Company”) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended 30 September 2025. These unaudited consolidated financial statements have been reviewed by the Company’s audit committee (the “Audit Committee”) prior to recommending them to the Board for approval. Financial year ended or ending 31 March is referred to as “FY” throughout this announcement. INTERIM DIVIDEND The Board resolved not to declare an interim dividend for the six months ended 30 September 2025 (six months ended 30 September 2024: HK1.0 cent per share).
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– 7 – CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 Six months ended 30.9.2025 30.9.2024 NOTES HK$’000 HK$’000 (unaudited) (unaudited) Revenue 3,755,780 5,171,742 Cost of sales and services (2,317,870) (3,439,682) Depreciation and impairment of hotel and car park assets (246,226) (226,658) Impairment loss on properties for sales (193,296) – Gaming tax (79,702) (71,727) Gross profit 918,686 1,433,675 Other income 66,970 48,156 Other gains and losses 5 112,995 (331,044) Administrative expenses – Hotel operations and management (251,077) (241,297) – Others (326,174) (343,643) Pre-operating expenses – Hotel operations and management (5,453) (14,217) Professional fees in relation to listing of a subsidiary – (1,949) Selling and marketing expenses (187,887) (269,769) Share of results of associates (217,128) (238,317) Share of results of joint ventures (402,905) (207,067) Finance costs 6 (373,344) (496,598) Loss before tax (665,317) (662,070) Income tax expense 7 (138,843) (2,029) Loss for the period 8 (804,160) (664,099) Attributable to: Shareholders of the Company (988,420) (769,907) Owners of perpetual capital notes 183,045 103,321 Other non-controlling interests 1,215 2,487 184,260 105,808 (804,160) (664,099) Loss per share 9 – Basic (HK cents) (32.3) (27.3) – Diluted (HK cents) (32.3) (27.3)
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– 8 – CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 Six months ended 30.9.2025 30.9.2024 HK$’000 HK$’000 (unaudited) (unaudited) Loss for the period (804,160) (664,099) Other comprehensive income (expense) for the period Items that may be subsequently reclassified to profit or loss: Exchange differences arising on translation of foreign operations 684,984 944,000 Fair value change on debt instruments at fair value through other comprehensive income (“FVTOCI”) 6,375 67 Reclassification adjustment on disposal of debt instruments at FVTOCI (318) 21,122 Impairment loss under expected credit loss (“ECL”) model recognised on debt instruments at FVTOCI – 9,372 Share of other comprehensive expense of an associate (20,201) (12,248) Deferred taxation on revaluation gain of properties under property, plant and equipment upon transfer to investment properties (21,523) – Revaluation gain of properties under property, plant and equipment upon transfer to investment properties 86,092 – Item that will not be reclassified to profit or loss: Fair value change on equity instruments at FVTOCI (8,233) (120,895) Other comprehensive income for the period 727,176 841,418 Total comprehensive (expense) income for the period (76,984) 177,319 Total comprehensive (expense) income attributable to: Shareholders of the Company (256,710) 68,964 Owners of perpetual capital notes 183,045 103,321 Other non-controlling interests (3,319) 5,034 (76,984) 177,319
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– 9 – CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2025 30.9.2025 31.3.2025 NOTE HK$’000 HK$’000 (unaudited) (audited) Non-current Assets Investment properties 5,942,996 5,825,232 Property, plant and equipment 12,891,520 12,502,779 Goodwill 68,400 68,400 Interests in associates 1,541,171 1,711,669 Interests in joint ventures 1,215,809 2,231,075 Investment securities 315,415 328,853 Deposits for acquisition of property, plant and equipment 13,933 92,640 Amounts due from joint ventures 2,589,857 2,202,234 Amounts due from associates 347,384 99,817 Amount due from an investee company 119,995 119,995 Loan receivables 688,002 622,627 Pledged deposits 4,752 4,980 Deferred tax assets 124,537 148,744 Other assets 66,130 155,133 Other receivables 11 – 38,220 Restricted bank deposits 20,018 17,911 25,949,919 26,170,309 Current Assets Properties for sale Completed properties 3,776,161 3,810,392 Properties under development 5,690,297 6,506,517 Other inventories 14,011 14,470 Debtors, deposits and prepayments 11 592,331 598,537 Customers’ deposits under escrow 335,093 360,277 Contract assets 579,515 556,450 Contract costs 193,712 171,159 Amounts due from joint ventures 26,847 41,612 Amounts due from associates 24,463 19,084 Amount due from a shareholder of non-wholly owned subsidiary 23,682 22,739 Tax recoverable 112,674 104,306 Investment securities 767,175 806,246 Loan receivables 24,905 19,997 Derivative financial instruments – 2,385 Restricted bank deposits 108,576 348,401 Pledged deposits 87,680 90,128 Cash and cash equivalents 2,486,112 2,377,354 14,843,234 15,850,054 Assets classified as held for sale 262,516 522,993 15,105,750 16,373,047
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– 10 – 30.9.2025 31.3.2025 NOTE HK$’000 HK$’000 (unaudited) (audited) Current Liabilities Creditors and accruals 12 1,990,185 1,831,703 Contract liabilities 591,215 653,680 Lease liabilities 48,865 47,923 Amount due to a related company 1,220 1,180 Amounts due to associates 7,745 7,137 Amount due to a director 69,882 69,882 Amount due to joint ventures 131,625 145,123 Amounts due to shareholders of non-wholly owned subsidiaries 29,082 27,856 Tax payable 431,137 336,393 Bank and other borrowings 10,727,342 11,596,159 14,028,298 14,717,036 Net Current Assets 1,077,452 1,656,011 Total Assets less Current Liabilities 27,027,371 27,826,320 Non-current Liabilities Lease liabilities 266,742 273,451 Notes 517,581 516,426 Bank and other borrowings 12,699,656 13,258,803 Deferred tax liabilities 698,442 676,240 Other liabilities 2,963 2,852 14,185,384 14,727,772 Net Assets 12,841,987 13,098,548
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– 11 – 30.9.2025 31.3.2025 NOTE HK$’000 HK$’000 (unaudited) (audited) Capital and Reserves Share capital 305,904 305,904 Share premium 5,106,778 5,106,778 Reserves 4,155,146 4,411,363 Equity attributable to shareholders of the Company 9,567,828 9,824,045 Owners of perpetual capital notes 13 2,972,430 2,969,455 Other non-controlling interests 301,729 305,048 3,274,159 3,274,503 Total Equity 12,841,987 13,098,548
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– 12 – NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 1. GENERAL The Company was incorporated as an exempted company with limited liability in the Cayman Islands. The shares of the company have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). 2. BASIS OF PREPARATION The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 (“HKAS 34”) “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants as well as with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. 3. PRINCIPAL ACCOUNTING POLICIES The condensed consolidated financial statements have been prepared on the historical cost basis except for investment properties and certain financial instruments which are measured at fair values. Excepted as below, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 September 2025 are the same as those presented in the Group’s annual consolidated financial statements for the year ended 31 March 2025. Property, plant and equipment If a property becomes an investment property because its use has changed as evidenced by end of owner occupation, any difference between the carrying amount and the fair value of that item (including the relevant leasehold land classified as right-of-use assets) at the date of transfer is recognised in other comprehensive income and accumulated in revaluation reserve. Application of amendments to HKFRS Accounting Standards In the current interim period, the Group has applied the following amendments to HKFRS Accounting Standards issued by the HKICPA, for the first time, which are mandatorily effective for the Group’s annual period beginning on 1 April 2025 for the preparation of the Group’s condensed consolidated financial statements: Amendments to HKAS 21 Lack of Exchangeability 4. SEGMENT INFORMATION The Group determines its operating segments based on internal reporting about components that are regularly reviewed by the chief operating decision makers. Information reported to the Group’s chief operating decision makers, who are the executive directors of the Company, for the purposes of resource allocation and assessment of performance is mainly focused on the different management teams of the related business operations by various geographical locations stated as below: – Property development (including investment properties developed and managed by the same management team) – Property investment
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– 13 – 4. SEGMENT INFORMATION – CONTINUED – Hotel operations and management (including the investment properties which are an integral part of the hotel buildings and which are managed by the hotel management team as well as securities investments made and monitored by the same team) – Car park operations and facilities management – Gaming operations (including investment in The Star Entertainment Group which is engaged in the gaming business in Australia and is classified as equity instruments at FVTOCI) – Securities and financial product investments – Provision of mortgage services (including securities investment made and monitored by the same team) The following is an analysis of the Group’s revenue and results by reportable and operating segment. Segment revenue Segment profit (loss) Six months ended Six months ended Six months ended Six months ended 30.9.2025 30.9.2024 30.9.2025 30.9.2024 HK$’000 HK$’000 HK$’000 HK$’000 (unaudited) (unaudited) (unaudited) (unaudited) Property development – Australia 805,171 846,428 290,111 42,117 – Hong Kong (“HK”) (note 1) 143,362 897,672 (789,065) 39,199 – Malaysia – – 36,939 33,676 – Other regions in the People’s Republic of China excluding HK (“PRC”) 11,356 4,847 10,253 (7,703) – Singapore 2,955 574,479 12,190 51,520 – United Kingdom (“UK”) 1,079,416 1,196,011 183,218 180,124 2,042,260 3,519,437 (256,354) 338,933 Property investment – Australia 16,085 13,835 14,018 11,923 – HK 19,869 21,910 (110,936) (48,352) – PRC 19,479 19,971 7,846 (64,135) – UK 2,359 3,751 178 4,156 57,792 59,467 (88,894) (96,408) Hotel operations and management – Australia 286,370 257,308 7,501 (34,683) – HK 369,600 292,242 (21,701) (63,640) – Malaysia 91,276 87,788 14,875 18,223 – PRC 90,537 109,007 (59,935) 11,892 – Singapore 57,954 58,239 13,728 15,793 – UK 87,596 86,050 8,097 10,710 – Europe (other than UK) 86,772 85,974 (4,391) 8,755 1,070,105 976,608 (41,826) (32,950) Car park operations and facilities management – Australia and New Zealand 267,840 288,879 29,995 38,374 – UK 52,735 59,502 1,338 (13,578) – Europe 2,869 17,449 244 (1,523) – Malaysia 19,870 14,182 2,985 524 343,314 380,012 34,562 23,797
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– 14 – Segment revenue Segment profit (loss) Six months ended Six months ended Six months ended Six months ended 30.9.2025 30.9.2024 30.9.2025 30.9.2024 HK$’000 HK$’000 HK$’000 HK$’000 (unaudited) (unaudited) (unaudited) (unaudited) Gaming operations – Australia (note 2) – – (211,555) (237,860) – Czech Republic 218,447 196,118 42,051 41,632 218,447 196,118 (169,504) (196,228) Securities and financial product investments in HK 19,055 13,595 84,335 6,178 Provision of mortgage services – Australia 1,789 17,267 262,356 19,978 – HK 3,018 9,238 1,617 9,133 4,807 26,505 263,973 29,111 Segment revenue/segment (loss) profit 3,755,780 5,171,742 (173,708) 72,433 Unallocated corporate income and expenses and other gains and losses (61,408) (71,247) Net foreign exchange loss (56,857) (166,658) Finance costs (373,344) (496,598) Loss before tax (665,317) (662,070) Notes: 1. Included in the segment loss of HK is a write-down of inventories of approximately HK$530,000,000 (2024: HK$217,125,000) recorded by a joint venture, which is engaged in property development in HK, and shared by the Group. 2. Included in the segment loss of Australia is an impairment loss of approximately HK$110,368,000 (2024: HK$204,385,000) recorded by an associate, which is engaged in gaming operations in Australia, and shared by the Group. None of the segments derived any revenue from transactions with other segments. No revenue from any single customer contributed over 10% of the total revenue of the Group. Segment profit (loss) represents the profit earned by (loss from) each segment without allocation of central administration costs, certain bank interest income, other interest income, other gains and losses, net foreign exchange loss, professional fees in relation to listing of a subsidiary, directors’ emoluments and finance costs. This is the measure reported to the chief operating decision makers for the purposes of resource allocation and performance assessment. 4. SEGMENT INFORMATION – CONTINUED
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– 15 – 4. SEGMENT INFORMATION – CONTINUED Segment assets The following is an analysis of the Group’s assets by reportable segment as at the end of the reporting period. Segment assets represent assets held by each segment without allocation of certain assets, which are mainly cash and cash equivalents. As at 30.9.2025 As at 31.3.2025 HK$’000 HK$’000 (unaudited) (audited) Property development – Australia 3,442,864 4,110,673 – HK 4,637,298 5,351,584 – Malaysia 319,341 281,734 – PRC 2,575,365 2,454,821 – Singapore 611,595 605,314 – UK 5,255,133 5,828,482 16,841,596 18,632,608 Property investment – Australia 396,562 362,060 – HK 2,666,120 2,773,171 – PRC 6,675 8,849 – UK 35,097 35,959 3,104,454 3,180,039 Hotel operations and management – Australia 4,936,000 4,664,222 – HK 4,935,002 5,013,922 – Malaysia 724,005 697,001 – PRC 1,954,563 1,925,428 – Singapore 590,537 569,002 – UK 1,953,746 1,688,598 – Europe (other than UK) 258,618 245,583 15,352,471 14,803,756 Car park operations and facilities management – Australia and New Zealand 792,892 811,165 – Europe 138,184 135,604 – Malaysia 126,517 126,556 1,057,593 1,073,325 Gaming operations – Australia 37,047 43,153 – Czech Republic 204,286 156,399 241,333 199,552 Securities and financial product investments in HK 1,000,751 1,008,093 Provision of mortgage services – Australia 534 353,386 – HK 718,595 647,820 719,129 1,001,206 Segment assets 38,317,327 39,898,579 Unallocated corporate assets 2,738,342 2,644,777 Total assets 41,055,669 42,543,356
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– 16 – 4. SEGMENT INFORMATION – CONTINUED Segment assets – continued Information about segment liabilities are not regularly reviewed by the chief operating decision makers. Accordingly, segment liabilities information is not presented. 5. OTHER GAINS AND LOSSES Six months ended 30.9.2025 30.9.2024 HK$’000 HK$’000 (unaudited) (unaudited) Change in fair value of investment properties (76,591) (132,649) Gain (loss) on disposal of debt instruments at FVTOCI 318 (21,122) Gain on disposal of interests in joint venture (Note) 270,555 – Change in fair value of financial assets at fair value through profit or loss (“FVTPL”) 58,780 2,013 Change in fair value of derivative financial instruments 4,462 44 (Loss) gain on disposal of property, plant and equipment (1,769) 2,168 Net foreign exchange loss (56,857) (166,658) Impairment loss under ECL model recognised on debt instruments at FVTOCI – (9,372) Impairment loss under ECL model recognised on trade debtors (7,523) (5,468) Impairment loss recognised on deposits for acquisition of property, plant and equipment (88,427) – Reversal of impairment loss under ECL model on amount due from a joint venture 10,047 – 112,995 (331,044) Note: In the current interim period, the Group completed the sale of its entire 53.21% interest in BC Investment Group Holdings Limited (“BC Group”), a joint venture of the Group, comprising 12,149,864 shares, to BCSIHC Pty Ltd (as trustee for the BCSIHC Trust), an independent third party resulting in a gain of HK$270,555,000. Prior to the transaction, BCSIHC Pty Ltd was also a shareholder of BC Group. The initial consideration was Australian dollar (“A$”) 8.75 per share, amounting to A $106,311,310 (equivalent to approximately HK $547,370,000), plus a Per Share Earn-Out Payment, as detailed in the Company’s announcement published on 28 February 2025.
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– 17 – 6. FINANCE COSTS Six months ended 30.9.2025 30.9.2024 HK$’000 HK$’000 (unaudited) (unaudited) Interest on: Bank borrowings 592,927 856,988 Other loans 2,352 34 Interest on notes 14,581 12,826 Interest on lease liabilities 6,352 7,463 Amortisation of front-end fee 14,557 14,939 Others 16,921 4,689 Total interest costs 647,690 896,939 Less: amounts capitalised to: – properties for sale (properties under development) (221,845) (304,748) – property, plant and equipment (owned properties) (52,501) (95,593) 373,344 496,598 7. INCOME TAX EXPENSE Six months ended 30.9.2025 30.9.2024 HK$’000 HK$’000 (unaudited) (unaudited) The income tax expense (credit) comprises: Current tax: Hong Kong Profits Tax 28,028 62,580 PRC Enterprise Income Tax (“PRC EIT”) 3,938 6,783 PRC Land Appreciation Tax (“PRC LAT”) 3,761 41 Australia Income Tax 12,869 – Malaysia Income Tax 3,491 2,029 UK income tax 33,375 – Czech Republic Income Tax 5,268 6,173 90,730 77,606 Dividend withholding tax and interest withholding tax 53,882 7,656 (Over) under provision in prior years: Hong Kong Profits Tax (3,333) 4,256 PRC LAT (31) – Australia Income Tax – (2,141) Malaysia Income Tax – (566) 141,248 86,811 Deferred taxation (2,405) (84,782) 138,843 2,029
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– 18 – 7. INCOME TAX EXPENSE – CONTINUED Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profits for the period of each individual company comprising the Group less tax losses brought forward where applicable. PRC EIT is calculated in accordance with the EIT Law and Implementation Regulations of the EIT Law at the rate of 25%. PRC LAT is levied at the deemed levying rates in accordance with the relevant PRC tax laws and regulations. The domestic statutory tax rate of Australia, Malaysia, Singapore, UK and Czech Republic is 30%, 24%, 17%, 25% and 21% (31.3.2025: 30%, 24%, 17%, 25% and 21%) of the es timated assessable profit, respectively. 8. LOSS FOR THE PERIOD Six months ended 30.9.2025 30.9.2024 HK$’000 HK$’000 (unaudited) (unaudited) Loss for the period has been arrived at after charging: Depreciation of property, plant and equipment (including depreciation of leased properties of HK$21,023,000 (six months ended 30.9.2024: HK$25,769,000)) 241,098 234,967 Impairment loss on – property, plant and equipment included in “depreciation and impairment of hotel and car park assets” 15,912 – – properties for sale 193,296 – and after crediting (included in other income): Bank interest income 13,075 16,664 Government grants 10,812 59 9. LOSS PER SHARE The calculation of the basic and diluted loss per share attributable to the shareholders of the Company is based on the consolidated loss for the period attributable to the shareholders of the Company of HK$988,420,000 (six months ended 30.9.2024: HK$769,907,000) and the number of shares calculated as follows: Six months ended 30.9.2025 30.9.2024 ’000 ’000 (unaudited) (unaudited) Weighted average number of ordinary shares for the purpose of basic and diluted loss per share 3,059,040 2,817,604 At 30 September 2025, 20,000,000 granted shares options underlying scheme were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti- dilutive.
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– 19 – 10. DIVIDENDS Six months ended 30.9.2025 30.9.2024 HK$’000 HK$’000 (unaudited) (unaudited) Dividends recognised as distribution during the period: Final dividend for the year ended 31 March 2024 of HK10 cents – 281,760 The directors do not recommend payment of final dividend for the year ended 31 March 2025. No dividends were paid, declared or proposed during the interim period. The directors of the Company have determined that no dividend will be paid in respect of the interim period. 11. DEBTORS, DEPOSITS AND PREPAYMENTS 30.9.2025 31.3.2025 HK$’000 HK$’000 (unaudited) (audited) Trade debtors – Contracts with customers 169,813 146,053 – Lease receivables 69,422 63,315 Less: allowance for expected credit loss (88,197) (80,674) 151,038 128,694 Utility and other deposits 26,816 31,994 Prepayment and other receivables 369,703 392,891 Other tax recoverable 9,475 16,997 Consideration receivables 35,299 66,181 592,331 636,757 Analysed for reporting purpose as: Non-current assets – 38,220 Current assets 592,331 598,537 592,331 636,757 Trade debtors mainly represent receivables from renting of properties, use of hotel facilities and sales of properties. Rentals are payable on presentation of demand notes. Hotel room revenue is normally settled by cash or credit card. The Group allows an average credit period of 14 to 60 days to its corporate customers and travel agents. Proceeds from sales of properties are settled according to the payment terms of the sale and purchase agreements.
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– 20 – 11. DEBTORS, DEPOSITS AND PREPAYMENTS – CONTINUED The following is an aged analysis of trade debtors and lease receivables, net of allowance for expected credit loss, based on the invoice date at the end of the reporting period, which approximates the respective revenue recognition date except lease receivables and receivables from sales of properties recognised over time: 30.9.2025 31.3.2025 HK$’000 HK$’000 (unaudited) (audited) 0–60 days 138,034 113,728 61–90 days 5,699 2,607 Over 90 days 7,305 12,359 151,038 128,694 12. CREDITORS AND ACCRUALS 30.9.2025 31.3.2025 HK$’000 HK$’000 (unaudited) (audited) Trade creditors – Construction cost and retention payable for properties for sale 361,733 279,738 – Others 88,401 100,471 450,134 380,209 Construction cost and retention payable for capital assets 681,559 583,307 Rental deposits and rental receipts in advance 105,015 99,489 Other tax payables 158,888 165,003 Other payables and accrued charges 594,589 603,695 1,990,185 1,831,703 The following is an aged analysis of the trade creditors, based on the invoice date: 30.9.2025 31.3.2025 HK$’000 HK$’000 (unaudited) (audited) 0–60 days 417,249 370,334 61–90 days 18,901 2,090 Over 90 days 13,984 7,785 450,134 380,209
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– 21 – 13. PERPETUAL CAPITAL NOTES On 12 September 2019, 16 September 2019 and 24 February 2020, FEC Finance Limited (“FEC Finance”), an indirect wholly owned subsidia ry of the Group, issued US D250,000,000, USD50,000,000 and USD60,000,000 7.375% guaranteed perpetual capital notes ( “2019 Perpetual Capital Notes”) at an issue price of 100 per cent of the aggregate nominal amount of the 2019 Perpetual Capital Notes. Any amount payable arising from distribution or redemption were unconditionally and irrevocably guaranteed by the Company under the USD 1,000,000,000 guaranteed medium term note programme. Distribution on 2019 Perpetual Capital Notes are payable semi-annually in arrears on April and October each year (“Distributions Payment Date”) and can be deferred at the discretion of FEC Finance and is not subject to any limit as to the number of times distributions. The 2019 Perpetual Capital Notes have no fixed maturity and are redeemable at FEC Finance’s option on 18 October 2024 or any Distributions Payment Date at their principal amounts. While any distributions are unpaid or deferred, the Company cannot declare or, pay dividends or make distributions or similar periodic payments in respect of, or repurchase, redeem or otherwise acquire any securities of lower or equal rank, which includes the ordinary shares of the Company. On 18 October 2024, in accordance with the agreement, the settlement of principal on the perpetual capital notes was deferred. As a result, the interest rate applicable to the notes stepped up from 7.375% to 12.814%. The perpetual capital notes holders endorsed modifications to the provisions of the 2019 Perpetual Capital Notes in 2024. These changes allow FEC Finance to opt for redemption of a minimum cumulative principal of US D20,000,000 of the 2019 Perpetual Capital Notes. The redemption can be executed by providing the holders with an advance notification that is both non-revocable and falls within a timeframe of no fewer than 15 days and no more than 30 days prior to the redemption date, which is set on a specific date of each month at the discretion of FEC Finance. There is no redemption of 2019 Perpetual Capital Notes during the current interim period. The 2019 Perpetual Capital Notes are classified as equity instrument. Any distributions made by FEC Finance to the holders are recognised in equity in the condensed consolidated financial statements of the Group. 14. EVENTS AFTER THE REPORTING PERIOD 1) Subsequent to the reporting period, the Group has entered into a term sheet in respect of a possible disposal of certain interest in the company holding the title or other rights in respect of The Ritz Carlton Hotel in Perth, Australia to an independent third party. Further details of the transaction are set out in the Company’s announcement dated 11 November 2025. 2) Subsequent to the announcement dated 12 August 2025 in respect of the transaction with The Star Entertainment Group (“STAR”), the Company issued a supplemental announcement on 17 November 2025. In c onsideration, the Group and Chow Tai Fook Enterprises Limited (“CTFE”) agreed to pay STAR a cash amount of A $18,000,000 (equivalent to approximately HK$91,980,000) and an earn-out payment, which is contingent upon the financial performance of Destination Brisbane Consortium Integrated Resort Holdings Pty Ltd (“DBC”) in the year of 2030. Additionally, an interest-free loan of A$35,000,000 (equivalent to approximately HK$778,850,000) will be provided by the Group and CTFE to Destination Gold Coast Consortium Pty Ltd (“DGCC”) and prepaid to STAR as an advance on future proceeds from the sales of properties, with repayment contingent upon the completion. As at 30 September 2025, the Group has provided guarantees for debt facilities held by DBC amounting to A $400,000,000 (equivalent to approximately HK $2,044,000,000). Upon completion of the aforementioned transaction, STAR will be released from its bank guarantee in respect of DBC’s loan facility. The Group and CTFE, as the continuing shareholders of DBC, have undertaken to provide guarantees and financial support to DBC to ensure the ongoing funding and development of the Queen’s Wharf Brisbane project. As at the date of approval for issuance of the condensed consolidated financial statements, the transaction has not yet been completed. Further details of the transaction are set out in the Company’s announcements dated 12 August 2025 and 17 November 2025. 15. COMPARATIVE FIGURES Certain comparative figures have been reclassified in these condensed consolidated financial statements, which have no material effect on previously reported profit and equity, to conform with the current year’s presentation.
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– 22 – MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW 1. Profit and loss analysis The Company’s consolidated revenue for 1H FY2026 was approximately HK$3.8 billion, a decrease of 27.4% as c ompared with 1H FY 2025, with less property deve lopment revenue recognition during the period. Adjusted gross profit (i), a non-GAAP financial measure, came in at approximately HK $1.3 billion, as compared with approximately HK$1.6 billion for 1H FY2025. A breakdown of the Group’s revenue and gross profit is set out below: Property development Hotel operations and management Car park operations and facilities management Gaming operations Others Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 1H FY2026 Revenue 2,042,260 1,070,105 343,314 218,447 81,654 3,755,780 Gross profit 446,692 268,997 60,749 85,668 56,580 918,686 Depreciation – 163,848 (ii) 8,323 (ii) 6,910 – 179,081 Impairment 193,296 15,912 – – – 209,208 Adjusted gross profit (i) 639,988 448,757 69,072 92,578 56,580 1,306,975 Adjusted gross profit margin (i) 31.3% 41.9% 20.1% 42.4% 69.3% 34.8% 1H FY2025 Revenue 3,519,437 976,608 380,012 196,118 99,567 5,171,742 Gross profit 943,239 258,009 81,897 78,133 72,397 1,433,675 Depreciation – 166,419 (ii) 11,137 (ii) 3,453 – 181,009 Adjusted gross profit (i) 943,239 424,428 93,034 81,586 72,397 1,614,684 Adjusted gross profit margin (i) 26.8% 43.5% 24.5% 41.6% 72.7% 31.2% Notes: (i) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below. (ii) Excludes depreciation of leased properties under HKFRS 16.
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– 23 – Revenue from property development business amounted to approximately HK $2.0 billion in 1H F Y2026, a decrease of 42.0% as compared with 1H F Y2025. Adjusted revenue from property development (i), a non-GAAP financial measure, which accounted for the attributable revenue contributions from JV property development projects, stood at approximately HK$3.2 billion, representing a decrease of 10.3% as co mpared with approximately HK$3.6 billion in 1H FY2025. Major contributors to the adjusted revenue from property development (i), a non-GAAP financial measure, included Victoria Riverside (Towers B, C and Bromley Street) in Manchester, the UK, Aspen at Consort Place in London, West Side Place in Melbourne and Mount Arcadia in Hong Kong; as well as JV projects, The Pavilia Forest in Hong Kong, Dorsett Waterfront Subang in Malaysia and Queen’s Wharf Residences (Tower 4) in Brisbane, Australia. Adjusted gross profit (i), a non-GAAP financial measure, of approximately HK $640 million was recorded during 1H FY2026, representing a 31.3% adjusted gross profit margin (i), a non-GAAP financial measure, an increase as compared with 1H F Y2025 due to higher gross profit margin recorded from properties sales in Australia and the UK during 1H FY2026. Revenue from hotel operations and management continued its growth, increasing by 9.6% as compared with the same period last year to approximately HK $1,071 million in 1H FY2026. Adjusted gross profit margin (i), a non-GAAP financial measure, for the Group’s hotel operations decreased from 43.5% in 1H FY2025 to 41.9% in 1H FY2026, partly due to the performance of Dorsett Kai Tak, Hong Kong not yet being fully optimised. Car park operations and facilities management revenue amounted to approximately HK$343 million during 1H FY2026, a decrease of 9.7% as compared with 1H FY2025. Adjusted gross profit (i), a non-GAAP financial measure, of approximately HK$69 million was recorded for 1H F Y2026. Adjusted gross profit margin (i) , a non-GAAP financial measure, decreased to 20.1% in 1H FY2026 from 24.5% in 1H FY2025, primarily driven by the disposal of a car park in Boundary Farm, Manchester, the UK in September 2024 and the increase in property holding cost, including land tax. Revenue from gaming business increased by 11.4% to approximately HK $218 million in 1H FY2026 as compared with 1H F Y2025. Adjusted gross profit (i) , a non-GAAP financial measure, was approximately HK $93 million in 1H F Y2026. Adjusted gross profit margin (i), a non-GAAP financial measure, increased to 42.4% in 1H FY2026 from 41.6% in 1H FY2025. The increase was driven by increased visits following successful marketing campaign launched in Austria. The Group’s overall profitability in 1H F Y2026 was primarily impacted by various impairment losses during the period, partially offset by growth in recurring income business, lower finance costs and the gain from disposal of its stake in BC Invest. As a result, loss attributable to shareholders of the Company was recorded at HK$988 million in 1H FY2026, an increase of 28.4% as compared with HK$770 million in 1H FY2025. While the profitability reflected the impact of non-cash impairment losses, adjusted cash profit (i), a non-GAAP financial measure, was approximately HK$203 million in 1H FY2026, an increase of 509.8% from HK$33 million recorded in 1H FY2025. Note: (i) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below.
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– 24 – 2. Liquidity, financial resources, and net gearing The following table sets out the Group’s bank and cash balances, investment securities (which are considered as cash equivalent items due to their easily monetisable nature), bank loans and borrowings and obligations under finance leases and equities as at 30 September 2025. Consolidated statement of financial position As at 30 September 2025 As at 31 March 2025 HK$’million HK$’million Bank loans, notes and bonds Due within 1 year (ii) 10,727 11,596 Due 1–2 years 7,546 5,294 Due 2–5 years 4,552 7,368 Due more than 5 years 1,120 1,113 Total bank loans, notes and bonds 23,945 25,371 Investment securities 1,083 1,135 Bank and cash balances (iii) 2,615 2,743 Liquidity position 3,698 3,878 Net debts (iv) 20,247 21,493 Carrying amount of the total equity (v) 12,842 13,099 Add: hotel revaluation surplus (vi) 18,350 18,681 Adjusted total equity (i) 31,192 31,780 Adjusted net gearing ratio (i) (net debts to adjusted total equity (i)) 64.9% 67.6% Proforma adjusted net gearing ratio before impairment (vii) 63.0% 65.8% Net debt to adjusted total assets (i) 34.1% 35.1%
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– 25 – Notes: (i) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below. (ii) Includes an amount of approximately HK $10,727 million, which is reflected as liabilities due within one year even though such a sum is not repayable within one year, as the relevant banks and/ or financial institutions have discretionary rights to demand immediate repayment. (iii) Represents total restricted bank deposits, deposits in financial institutions and bank balances and cash. (iv) Represents total bank loans, notes and bonds less investment securities and bank and cash balances. (v) Includes 2019 Perpetual Capital Notes. (vi) Based on the independent valuations carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025. (vii) Excludes the effect on impairment loss recognised on properties for sale, impairment loss recognised on deposits for acquisition of property, plant and equipment, share of impairment loss recognised by a JV and share of impairment loss recognised by an associate. To better manage the Group’s liquidity position, the Group allocates a portion of its cash position in marketable and liquid investment securities. Investment securities shown on the consolidated statement of financial position represent primarily fixed-income securities and investments in fixed-income funds; investments in the listed shares and investments in notes. The liquidity position of the Group as at 30 September 2025 was approximately HK$3,698 million. The Group’s adjusted total equity (i), a non-GAAP financial measure, as at 30 September 2025 was approximately HK$3 1,192 mi llion, adjusting for the unrecognised hotel revaluation surplus of approximately HK $18,350 million, which is based on independent valuations carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025, and includes the 2019 Perpetual Capital Notes. The Group’s adjusted net gearing ratio (i) , a non-GAAP financial measure, decreased to 64.9% as at 30 September 2025 as compared with 67.6% as at 31 March 2025. In 1H FY2026, var ious non-cash impairment losses impacted the profitability and the adjusted net gearing ratio (i), a non-GAAP financial measure. To highlight the Group’s debt reduction efforts, the proforma adjusted net gearing ratio before impairment which excludes the effect on impairment loss on properties for sale, impairment loss under recognised on deposits for acquisition of property, plant and equipment, share of impairment loss recognised by a JV and share of impairment loss recognised by an associate, decreased to 63.0% as at 30 September 2025. This reflects the Group’s strong commitment to enhancing liquidity, reducing debt levels and improving the gearing and financial position. Note: (i) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below.
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– 26 – To strengthen the Group’s financial position, the Group has implemented a series of debt reduction initiatives to reduce its finance costs: • accelerating the completion of property development projects – the Group expedited the completion of several major developments during the period. Victoria Riverside comprises Towers A, B, C and Bromley Street. Towers B and C, together with Bromley Street, with a combined expected gross development value (“GDV”) of approximately HK $1,053 million, were completed and commenced handover process in July 2025 and were substantially settled in 1H FY2026. This facilitated the full settlement of the construction loan for the entire development, including Tower A, within the same period. Tower A, with an expected GDV of approximately HK $1,045 million, is scheduled for completion in 1H F Y2027. Upon its completion and settlement, the Group anticipates further cash inflow and continued improvement in its gearing and liquidity position. • actively monetising inventory – the Group continued to drive cash inflows during 1H FY2026 by actively pursuing the sales of existing inventory, including Mount Arcadia in Hong Kong, Aspen at Consort Place in London, the UK, as well as West Side Place in Melbourne, Australia. Upon completion of The Pavilia Forest in Hong Kong in September 2025, the Gr oup’s existing inventory was valued at approximately HK $10.0 billion as at 30 September 2025. The Group intensified its sales effort to monetise its existing inventory, supported by active selling campaigns across Hong Kong, the UK and Australia. • divesting non-core asset and business – the Group completed two non-core asset and business disposals, including (i) a mortgage portfolio in Hong Kong; and (ii) the Group’s equity interest in BC Invest during 1H FY2026, generating aggregate proceeds of approximately HK $1.0 billion. The proceeds were used for general working capital and contributed to improve liquidity and gearing ratio. In addition, the Group entered into a non-binding term sheet to dispose certain interest in a company which indirectly holding Ritz-Carlton Perth (“Target Company”) and received the first instalment of AU D20 million in November 2025. The Group intends to jointly own the Target Company upon completion. For details, please refer to the announcement of the Company dated 11 November 2025.
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– 27 – • optimising hotel portfolio for sustainable growth – the Group strategically aligned hotel openings with the economic recovery cycle, ensuring a well-timed ramp-up and revenue contribution. Dorsett Kai Tak, the Group’s flagship hotel in Hong Kong, soft opened in September 2024 and delivering strong contributions, reinforcing the Group’s market presence in Hong Kong, which remains one of the major sources of hotel revenue for the Group. Dorsett Canary Wharf London in London, the UK, soft-opened in September 2025. The hotel strategically located in Canary Wharf, one of London’s CBDs, the hotel is well-positioned to capture both corporate and leisure demand, leveraging the advantages of its prime location. Dorsett Perth in Australia which is scheduled to open within the next 12 months, this hotel further enhances the Group’s recurring income streams. Collectively, these initiatives strengthen revenue contribution, generate additional liquidity from operating cash flow, and advance the Group’s diversification strategy. As at 30 September 2025 As at 31 March 2025 HK$ million HK$ million The Company’s notes 518 516 Unsecured bank loans 3,650 4,576 Secured bank loans – Property development and investment 6,172 6,664 – Hotel operations and management 13,218 13,230 – Car park operations and facilities management 298 288 – Gaming operations 49 54 – Others 40 43 Total bank loans, notes and bonds 23,945 25,371 As at 30 September 2025, total bank loans, notes and bonds amounted to approximately HK$23.9 billion, a decrease of approximately HK $1,426 million or 5.6% as compared with 31 March 2025. The reduction was primarily due to repayment of project loans and unsecured loans with cashflow from disposal of non-core assets and the settlement of certain projects, including Victoria Riverside in Manchester, Aspen at Consort Place in London and West Side Place in Melbourne. As at 30 September 2025, the Group’s bank loans, notes and bonds which were due within one year was approximately HK $10,727 million. Of this amount, (i) approximately HK$5,819 million were secured corporate, hospitality and car park loans, expected for rollover or refinancing to longer maturities; (ii) approximately HK$780 million were in secured development loans, mostly to be repaid from the presales proceeds upon settlement; (iii) approximately HK $2,703 million were unsecured corporate loans; (iv) approximately HK$639 million will be repaid in accordance with the repayment schedule; and (v) approximately HK $786 million were in relation to bank loans with a repayable on demand clause and therefore being classified as current liabilities.
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– 28 – Bank loans, notes and bonds, denominated in: As at 30 September 2025 As at 31 March 2025 HKD 69.1% 68.0% AUD 10.8% 11.9% SGD 4.5% 4.2% GBP 6.3% 7.7% RMB 8.3% 7.4% Others 1.0% 0.8% 100% 100% As at 30 September 2025, the primary currency of indebtedness for the Group’s bank loans, notes and bonds was Hong Kong dollar, representing approximately 69.1% of the Group’s total bank loans, notes and bonds. Other significant currency debts included Australian dollar, Singapore dollar, Great British pound and Renminbi, accounting for approximately 10.8%, 4.5%, 6.3% and 8.3%, respectively. Following interest rate cut by the US Federal Reserve since the fourth quarter of 2024, including two reductions between September and October 2025, a downward trend in interest rates has emerged. Given Hong Kong’s linked exchange rate system, the Group expects local interest rates to follow, which would help reduce average interest rate and ease overall finance costs. As at 30 September 2025, the Group had 94.8% bank loans, notes and bonds with floating rates (as at 31 March 2025: 97.1%) while the remaining had fixed rates. In 1H FY2026, the average interest rate for bank loans decreased to 5.03% from 6.12% as compared with FY2025. As at 30 September 2025, the Group’s undrawn banking facilities, other than those used for treasury function, stood at approximately HK $904 million. Of this amount, approximately HK $129 million is allotted to development/construction facilities while the balance of approximately HK$775 million is for the Group’s general corporate use. When combined with presales to be recognised from the Group’s ongoing property development projects, the unutilised banking facilities place the Group in a good financial position to fund not only its existing business and operations, but also its sustainable growth going forward. In addition, the Group has other assets such as five unencumbered hotel assets amounting to approximately HK $1,292 million. These can be used as collateral for further bank borrowings which could provide additional liquidity for the Group, should this be necessary. The Group executed a fixed interest rate swap on a portion of its outstanding debt, effectively fixing the finance costs in May 2025. It remains committed to a proactive approach of recycling capital and monetising assets and businesses to maintain relatively stable indebtedness ratios and prevent financing costs from becoming an excessive drag on operating results.
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– 29 – 3. Foreign exchange management In 1H FY2026, the contribution from the Group’s non-Hong Kong operations was affected by the movement of foreign currencies against the Hong Kong dollar. The table below denotes the exchange rates of the Hong Kong dollar against the local currencies of countries in which the Group has significant operations. Rate As at 30 September 2025 As at 31 March 2025 Change HK$/AUD 5.11 4.87 4.9% HK$/RMB 1.09 1.07 1.9% HK$/MYR 1.84 1.75 5.1% HK$/GBP 10.43 10.05 3.8% HK$/CZK 0.38 0.34 11.8% HK$/SGD 6.03 5.79 4.1% Average rate for 1H FY2026 1H FY2025 Change HK$/AUD 4.99 5.22 (4.4%) HK$/RMB 1.08 1.10 (1.8%) HK$/MYR 1.80 1.77 1.7% HK$/GBP 10.24 10.11 1.3% HK$/CZK 0.36 0.34 5.9% HK$/SGD 5.91 5.93 (0.3%) The Group adopts a practice whereby investments in its non-Hong Kong operations are hedged by borrowings in the local currency of the countries where such investments are made. The impact of movements in the above currencies to the Group’s loss attributable to shareholders for 1H FY2026 is analysed below: Increase to the Group’s loss attributable to shareholders for 1H F Y2026 assuming exchange rates of the following currencies against the Hong Kong dollar remained constant during the period: HK$ million AUD (0.5) RMB 0.3 MYR (1.1) GBP (1.7) CZK (0.6) SGD 0.1 Total impact (3.5)
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– 30 – The movement in foreign currencies also had an impact on the consolidated statement of financial position of the Group. As net assets of the Group’s non-Hong Kong operations are translated into Hong Kong dollars for consolidation purposes, the movements in foreign currencies have affected the value in Hong Kong dollar-equivalent of such net assets and therefore the Group’s net asset position. The Group’s net asset value would have been approximately HK $571 million lower as at 30 September 2025 assuming exchange rates remained constant during 1H FY2026. 4. Net asset value per share As at 30 September 2025 As at 31 March 2025 HK$ million HK$ million Equity attributable to shareholders of the Company 9,568 9,824 Add: Hotel revaluation surplus 18,350 18,681 Adjusted net asset value attributable to shareholders (i) 27,918 28,505 Number of shares issued (million) 3,059 3,059 Adjusted net asset value per share (i) HK$9.13 HK$9.32 After adjusting for the revaluation surplus on hotel assets of approximately HK$18,350 million based on independent valuations assessed as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain area were reclassified as investment property as at 30 September 2025, adjusted net asset value attributable to shareholders (i), a non-GAAP financial measure, was approximately HK $27,918 million. Adjusted net asset value per share (i), a non-GAAP financial measure, for the Company as at 30 September 2025 was approximately HK$9.13. Note: (i) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below.
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– 31 – 5. Capital expenditures The Group’s capital expenditure primarily went towards acquisitions, development and construction and refurbishment of hotel properties, plant and equipment and investment properties. In 1H FY2026, the Group’s capital expenditures amounted to approximately HK $206 million, primarily attributable to (i) Dorsett Perth in Australia; (ii) Dorsett Canary Wharf London in the UK; and (iii) Palasino Mikulov in Czech Republic. The capital expenditure was funded through a combination of borrowings and internal resources. 6. Capital commitments The Group continued to carefully monitor its capital commitments in order to optimise its investments and spending. The table below provides a summary of the Group’s capital commitments: As at 30 September 2025 As at 31 March 2025 HK$ million HK$ million Capital expenditures contracted but not provided in the consolidated financial statements in respect of: Acquisition, development and refurbishment of – hotel properties 117 302 – hotel properties to a JV 69 76 – investment properties 399 60 Commitment to provide capital injection to an associate 433 412 Commitment to provide credit facility to a JV – 504 Capital injection to investment funds 22 33 1,040 1,387 As at 30 September 2025, the Group’s capital commitments amounted to approximately HK$1,040 million, primarily attributable to investment properties including the long lease residential development in Baoshan, Shanghai and the following hotel developments: (i) Dorsett Perth in Australia; and (ii) The Star Residences – Epsilon on the Gold Coast in Australia. The capital commitments will be financed through a combination of borrowings and internal resources. All of these hotel developments are in the final stage of construction. It is expected that their capital expenditure will be substantially reduced in the coming financial year.
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– 32 – BUSINESS REVIEW 1. Property division The Group’s property division includes property development and property investment. Property development The Group has a diversified portfolio of residential property developments in Australia, the UK, Hong Kong, Singapore, Malaysia and Chinese Mainland, which are largely focused on the mass residential market. The Group’s strong regional diversification reduces volatility and allows us to take advantage of different property cycles. The Group has established strong local teams to carry out property development in each of these markets, as their presence allows the Group to identify trends and source the most attractive opportunities, such as the partnership with Manchester City Council (“MCC”). These land acquisition strategies have resulted in a land banking strategy comprising of a relatively low land cost base for the Group’s development projects and little capital kept idle. Total cumulative attributable presales value of the Group’s residential properties under development and unbooked contracted sales amounted to approximately HK$9.3 billion as at 30 September 2025. Most presales proceeds are not reflected in the Group’s consolidated statement of profit and loss until the relevant projects are completed.
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– 33 – The following table sets out a breakdown of the Group’s total cumulative attributable presales value and the cumulative unbooked contracted sales of residential properties as at 30 September 2025. Developments Location Attributable presales Expected financial year of completion HK$ million Projects under presales Queen’s Wharf Residences (Tower 5) (i) Brisbane 2,146 FY2029 The Star Residences – Epsilon (Tower 2) (ii) Gold Coast 530 FY2027 640 Bourke Street Melbourne 1,235 FY2029 Victoria Riverside – Crown View (Tower A) Manchester 1,033 FY2027 Collyhurst Village Manchester 287 FY2026 – FY2027 Red Bank Riverside – Falcon Manchester 554 FY2028 Red Bank Riverside – Kingfisher Manchester 755 FY2028 Sub-total 6,540 Developments Location Attributable contracted sales HK$ million Contracted sales of completed projects The Towers at Elizabeth Quay Perth 15 West Side Place (Towers 1 and 2) Melbourne 191 West Side Place (Towers 3 and 4) Melbourne 120 Aspen at Consort Place London 163 Victoria Riverside – Park View (Tower C) Manchester 131 Victoria Riverside – Bromley Street Manchester 62 Dorsett Place Waterfront Subang – Tower A (i) (iii) Subang Jaya 51 Dorsett Place Waterfront Subang – Tower B (i) (iii) Subang Jaya 43 Royal Riverside (Tower 5) Guangzhou 1 King’s Manor Shanghai 17 Mount Arcadia Hong Kong 42 Marin Point Hong Kong 5 The Pavilia Forest (i) Hong Kong 1,883 Sub-total 2,724 Total 9,264 Notes: (i) The Group has 50% interest in the development. (ii) The Group has 33.3% interest in the development. (iii) Excludes contract presales already recognised as revenue up to 30 September 2025. As at 30 September 2025, the expected attributable GDV of the Group’s active residential property development projects under various stages of development across the regions was approximately HK$61.8 billion.
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– 34 – Details of the Group’s current pipeline are shown below: Developments Attributable saleable floor area(i) Expected attributable GDV(ii) Launched/ expected launch Expected financial year of completion Sq. ft. HK$ million Pipeline developments Melbourne 640 Bourke Street 519,000 3,954 Launched FY2029 Brisbane Queen’s Wharf Residences (iii) – Tower 5 350,000 2,815 Launched FY2029 – Tower 6 169,000 1,225 Planning FY2029 Gold Coast The Star Residences (iv) – Tower 2 – Epsilon 109,000 543 Launched FY2027 – Towers 3 to 5 374,000 1,859 Planning Planning Hong Kong Lam Tei, Tuen Mun 383,000 6,320 Planning Planning Ho Chung, Sai Kung (v) 19,000 472 FY2027 FY2027 Sai Ying Pun (vi) 75,000 1,717 FY2027 FY2028 Yau Kom Tau 235,000 3,050 Planning Planning London Ensign House 296,000 3,546 Planning Planning Ensign House – Affordable Housing 108,000 431 Planning Planning Manchester MeadowSide (Plot 4) 244,000 1,274 Planning Planning Victoria North (vii) – Victoria Riverside – Crown View (Tower A) 207,000 1,045 Launched FY2027 – Collyhurst Village 138,000 413 Launched FY2026 – FY2027 – Collyhurst Village Social/ Affordable Housing 53,000 183 Launched FY2026 – FY2027 – Red Bank Riverside • Falcon 131,000 708 Launched FY2028 • Kingfisher 230,000 1,271 Launched FY2028 • NT02-NT04 721,000 4,054 Planning FY2028 – FY2030 – Network Rail 1,532,000 8,613 Planning Planning – Others 967,000 5,438 Planning Planning
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– 35 – Developments Attributable saleable floor area(i) Expected attributable GDV(ii) Launched/ expected launch Expected financial year of completion Sq. ft. HK$ million Trafford 421,000 2,034 Planning Planning Trafford Affordable Housing 147,000 522 Planning Planning Malaysia Dorsett Place Waterfront Subang (viii) – Tower C 167,000 275 Planning Planning Total developments pipeline as at 30 September 2025 7,595,000 51,762 Developments Attributable saleable floor area(i) Expected attributable GDV(ii) Sq. ft. HK$ million Completed developments available for sale Melbourne West Side Place – Towers 1 and 2 76,000 374 – Towers 3 and 4 59,000 267 Brisbane Queen’s Wharf Residences – Tower 4 (iii) 1,000 8 Perth The Towers at Elizabeth Quay 79,000 561 London Aspen at Consort Place 157,000 2,037 Hornsey Town Hall 11,000 97 Manchester Victoria North – Victoria Riverside • Park View (Tower C) 34,000 157 • Bromley Street 31,000 140
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– 36 – Developments Attributable saleable floor area(i) Expected attributable GDV(ii) Sq. ft. HK$ million Malaysia Dorsett Place Waterfront Subang(viii) – Tower A 38,000 131 – Tower B 77,000 178 Shanghai King’s Manor 8,000 53 The Royal Crest II 2,000 14 District 17A 5,000 27 Guangzhou Royal Riverside 6,000 18 Hong Kong Marin Point 44,000 521 Manor Parc 17,000 247 Mount Arcadia 12,000 271 Mount Arcadia (4 houses) 13,000 293 The Pavilia Forest (ix) 223,000 4,607 Total completed developments available for sale as at 30 September 2025 893,000 10,001 Total pipeline and completed developments available for sale as at 30 September 2025 8,488,000 61,763 Notes: (i) The figures represent approximate saleable floor area which may vary subject to finalisation of development plans. (ii) The amounts represent expected GDV attributable to the Group, which may change subject to market conditions. (iii) Total saleable floor area of this development is approximately 1,544,000 sq. ft.. The Group has 50% interest in the development. (iv) The Group has 33.3% interest in these developments. (v) Total saleable floor area of this development is approximately 58,000 sq. ft.. The Group has 33.3% interest in the development.
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– 37 – (vi) The total saleable floor area and GDV figures are estimated figures and subject to approval from Urban Renewal Authority (“URA”). (vii) The total saleable floor area and GDV figure is estimated based on land already acquired and expected number of units to be built. As the master developer of Victoria North, the Group is expecting further land acquisitions, which will increase both saleable floor area and GDV for this development. (viii) Total saleable floor area of this development is approximately 1,054,000 sq. ft.. The Group has 50% interest in the development. (ix) Total saleable floor area of this development is approximately 508,000 sq. ft.. The Group has 50% interest in the development. Australia Melbourne West Side Place is a mixed-use residential development located in the Central Business District (“CBD”) of Melbourne. The project consists of four towers with two hotels, including a luxury Ritz-Carlton hotel of 257 rooms in Tower 1 and a Dorsett-branded hotel of 316 rooms in Tower 3. Towers 1 and 2 comprise a total of 1,377 apartments with a total saleable floor area of approximately 1.1 million sq. ft. and an expected total GDV of approximately HK$4.9 billion. The development is completed. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK $374 million, of which approximately HK$191 million was recorded as contracted sales. Sales and settlements are expected to continue in the second half of FY2026. Towers 3 and 4 comprise a total of 1,519 apartments which feature a total saleable floor area of approximately 1.1 million sq. ft. with an expected total GDV of approximately HK$5.1 billion. The development is completed. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK $267 million, of which approximately HK $120 million was recorded as contracted sales. Sales and settlements are expected to continue in the second half of FY2026. 640 Bourke Street, located in Melbourne and adjacent to West Side Place and Upper West Side, is a mixed-use development. The project will reach 68 levels, featuring high-end 1-, 2-, and 3- bedroom apartments. The development consists 606 residential units with a total saleable floor area of approximately 519,000 sq. ft., and an expected total GDV of approximately HK $4.0 billion, as well as 430 sq. m. of retail space and 296 car park bays. Upon the launch of the development in late February 2025, approximately HK$1,235 million worth of units were presold as at 30 September 2025. The development is expected to be completed in F Y2029. Together with West Side Place and Upper West Side, 640 Bourke Street will form a continuous stretch of mixed- use developments across three consecutive city blocks, significantly contributing to the revitalisation of the western edge of the CBD.
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– 38 – Perth Perth Hub, the first phase of the Perth City Link project, is a mixed-use development adjacent to the Perth Arena. It consists of Lots 2 and 3 of the Perth City Link and features 314 residential apartments and a 260-room Dorsett hotel, with a total expected GDV of approximately HK $816 million. The development is completed and all units have been settled as at 30 September 2025. After being selected as the preferred proponent of the Perth City Link projects, the Group secured Lots 4, 9 and 10 of the Perth City Link projects. These three lots will host a wide range of boutique apartments and an integrated retail, entertainment, commercial and hospitality complex. This project is currently in the planning stage. The Towers at Elizabeth Quay is a two-tower mixed-use flagship development project which consists of approximately 371,000 sq. ft. in total saleable floor area of residential apartments and a luxury Ritz-Carlton hotel of 205 rooms. As at 30 September 2025, the expected GDV of the completed stocks available for sale was approximately HK $561 million. Of this amount, approximately HK$15 million has been recorded as contracted sales. Brisbane Queen’s Wharf Residences is a development in which the Group holds a 50% stake. Located adjacent to the QWB Project, it comprises three towers with a total of 1,829 apartments and a saleable floor area of approximately 1.5 million sq. ft.. The development has an expected total GDV of approximately HK$11.1 billion (attributable GDV of approximately HK$5.6 billion). Tower 4 is the only residential tower directly connected to the QWB Project and features 667 residential apartments, with a total saleable floor area of approximately 506,000 sq. ft. and total GDV of approximately HK$3.0 billion (attributable GDV of approximately HK$1.5 billion). The development has been completed and the handover process commenced in March 2025. As at 30 September 2025, the expected attributable GDV of the completed stocks available for sale was approximately HK$8 million. Tower 5 initially comprises 819 residential apartments with a total saleable floor area of approximately 701,000 sq. ft., with all units fully presold. Due to rising costs and strong demand for residential units in Brisbane, the Group offered revised agreements with a price increment to original buyers in December 2024, with over 60% of buyers accepting the agreements within three months. In addition, the Group secured planning approval for the inclusion of 28 additional units, increasing the total saleable floor area to approximately 701,000 sq. ft. and raising the expected total GDV to approximately HK$5.6 billion (attributable GDV of approximately HK $2.8 billion). The remaining units have re-launched on the market in July 2025 with a further price increment. As at 30 September 2025, the Group presold approximately HK$4.3 billion (attributable GDV of approximately HK $2.1 billion) worth of units. Completion of the development is expected to be in FY2029.
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– 39 – Tower 6 is a residential tower and features 315 re sidential apartments, with a total saleable floor area of approximately 337,000 sq. ft. and an expected total GDV of approximately HK$2.5 billion (attributable GDV of approximately HK$1.2 billion). The project is in planning stage and is expected to be completed together with Tower 5 in FY2029. Gold Coast The Star Residences – Epsilon (Tower 2), which the Group has a 33.3% stake, features 437 residential apartments with a total saleable floor area of approximately 327,000 sq. ft. and an expected total GDV of approximately HK $1.6 billion (attributable GDV of approximately HK$543 million). It also features the first Andaz Hotel in Australia with 202 rooms. As at 30 September 2025, the Group presold approximately HK$1.6 billion (attributable GDV of approximately HK$530 million) worth of units. Completion of the development is expected to be in FY2027. United Kingdom London Aspen at Consort Place is a mixed-use development site located at Marsh Wall, Canary Wharf in London. It comprises 502 residential units, 139 affordable housing units, a 237- room hotel and commercial spaces, spanning a total saleable floor area of approximately 482,000 sq. ft.. The development was completed in July 2025. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK$2.0 billion, of which approximately HK$163 million was recorded as contracted sales. Sales and settlements are expected to continue in the second half of FY2026. In North London, Hornsey Town Hall is a mixed-use redevelopment project entailing the transformation of an existing town hall into a hotel/serviced apartment tower with communal areas, alongside a residential segment. It comprises 135 residential units and 11 social/affordable units, spanning a total saleable floor area of approximately 114,000 sq. ft.. The development is completed. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK $97 million, which will be launched for sale following the hotel and other facilities within the development being operational and fulfilling their intended community purpose. Ensign House in Canary Wharf, London, which is adjacent to Aspen at Consort Place, is intended to evolve into a residential tower comprising over 400 residential units and approximately 120 affordable housing units. It features a total saleable floor area of approximately 296,000 sq. ft. for residential units, with a total expected GDV of approximately HK$3.5 billion. The project is in planning stage.
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– 40 – Manchester Victoria North is one of the UK’s largest regeneration projects spanning more than 390 acres (equivalent to 17 million sq. ft.) through a JV between the Group and MCC. The development is designed to deliver approximately 20,000 new homes over the next ten to fifteen years, integrating high-quality housing and social infrastructure to support city centre expansion. Recently recognised by the UK Government in September 2025 as one of twelve potential New Towns, the project is acknowledged as nationally significant. To support the progression of the new Metrolink stop at Sandhills, the Ministry of Housing Communities and Local Government recently awarded GB P1.5 mi llion to Transport for Greater Manchester to advance the outline business case. This strategic transport infrastructure will integrate Victoria North and its residents into a broader range of economic opportunities within Greater Manchester, while also serving as a catalyst for rental and capital value growth. Further capital funding has been allocated by the Department for Transport to support the construction of the new Metrolink station at Sandhills, as part of the integrated transport settlement to the Greater Manchester Combined Authority. The station is targeted to be built and operational by 2030. Initial phases of development within Victoria North are underway, with additional projects progressing as part of the long-term development pipeline and the creation of investible propositions. Victoria Riverside, located in Red Bank, comprises three towers with 596 units and 38 townhouses, spanning a total saleable floor area of approximately 460,000 sq. ft. with an expected total GDV of approximately HK$2.0 billion. Tower A (Crown View) features 275 residential units with approximately 207,000 sq. ft. of total saleable floor area and an expected total GDV of approximately HK$1.0 billion. Total presold value of approximately HK$1.0 billion was recorded as at 30 September 2025. It is expected to be completed in 1H FY2027. Tower B (City View) consists of 128 affordable housing units, was presold to Trafford Housing Trust, part of L&Q, one of England’s largest housing associations, for a consideration of GBP26 million. It was completed and settled in July 2025 and is now managed by the Group’s in-house operator, Found. Tower C (Park View) features 193 residential units with a total saleable floor area of approximately 129,000 sq. ft. and an expected total GDV of approximately HK $602 million. It was completed and commenced the handover process in July 2025, supporting the full repayment of the development loan. As at 30 September 2025, the expected GDV of the completed stocks available for sale was approximately HK$157 million. Of this amount, approximately HK$131 million has been recorded as contracted sales.
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– 41 – Further completions took place at Bromley Street which consists of 38 townhouses with a total saleable floor area of approximately 39,000 sq. ft. and an expected total GDV of approximately HK$177 million. As at 30 September 2025, the expected GDV of the completed stocks available for sale was approximately HK$140 million. Of this amount, approximately HK$62 million has been recorded as contracted sales. Collyhurst Village forms part of the initial phases of the Victoria North masterplan, comprising 144 private residential units with a total saleable floor area of approximately 153,000 sq. ft. and an expected total GDV of approximately HK$455 million. The first phases of homes for open market sale were completed in July 2025. A total presold value of approximately HK $287 million was recorded as at 30 September 2025. The development also includes 130 affordable housing units with a total saleable floor area of approximately 104,000 sq. ft.. The first phase of affordable housing was completed in September 2025 with a total remaining GDV of approximately HK$183 million. Further phased completions are expected throughout the second half of FY2026 to FY2027. The future pipeline in Manchester is concentrated in Red Bank Riverside, adjacent to the Group’s Victoria Riverside development. This phase comprises seven buildings, ranging from 6 to 34 storeys, and is expected to deliver approximately 1,551 homes across a total saleable floor area of approximately 1,082,000 sq. ft. with an expected total GDV of approximately HK $6.0 billion. The development also includes a new high street featuring approximately 20,000 sq. ft. of commercial and retail space. Remediation ground works are expected to complete in March 2026, with phased plot completions between FY2028 and FY2030. Falcon, one of the residential towers within the Red Bank Riverside, was launched in March 2024. The development features 189 residential units with a total saleable floor area of approximately 131,000 sq. ft. and an expected total GDV of approximately HK$708 million. As at 30 September 2025, the Group presold approximately HK$554 million worth of units. Remaining units will be launched upon completion. Kingfisher, another residential tower within Red Bank Riverside, was launched in August 2024. The development features 322 residential units with a total saleable floor area of approximately 230,000 sq. ft. and an expected total GDV of approximately HK$1.3 billion. The Group presold approximately HK$755 million worth of units as at 30 September 2025. At MeadowSide, the Group’s first major residential development in Manchester, three of the four plots (Plots 2, 3 and 5) were completed and fully settled. Plot 4 received planning permission for a 40-storey residential building; however, the Group continues to assess opportunities to increase gross floor area and enhance GDV, leveraging the location’s evolving market dynamics. In August 2024, a 50/50 public-private partnership was formalised to deliver the redevelopment of the former Greater Manchester Police Headquarters site on Chester Road in Old Trafford. The Group, as a private sector partner, retains 50% interest, while Trafford Metropolitan Borough Council (25%) and Greater Manchester Combined Authority (25%) acted as public sector partners.
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– 42 – Situated in a prime area near Manchester United Football Club and Old Trafford Cricket Ground, the site carried an estimated GDV of approximately GB P322 million. The development aims to deliver approximately 1,200 new homes, including affordable housing units, a 250-room hotel and approximately 30,000 sq. ft. of ground-floor commercial space, complemented by new public open spaces to support the new community. The development is currently being designed and a planning application is anticipated in Spring 2026. Chinese Mainland The Group has been developing California Garden, a premier township development in Shanghai, over the years. The development is comprised of a diversified portfolio of residences, including low-rise and high-rise apartments as well as townhouses. As at 30 September 2025, the expected GDV of completed stocks available for sale of King’s Manor was approximately HK$53 million; and the expected GDV of completed stocks available for sale of Royal Crest II was approximately HK$14 million. Royal Riverside in Guangzhou is a 5-tower residential development. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK$18 million. Hong Kong The Group built its development pipeline in Hong Kong over the years through the acquisition of redevelopment sites, participating in government tenders and participating in URA tenders. Mount Arcadia is a residential development site situated on Tai Po Road, featuring 62 apartments and 4 houses with a total saleable floor area of approximately 84,000 sq. ft. and an expected GDV of approximately HK$1.8 billion. The development has been completed. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK$271 million, of which approximately HK$42 million was secured as contracted sales. The 4 houses, with an expected total GDV of approximately HK$293 million, are planned to be launched for sale in the near term. In November 2021, the Group formed a JV which is held as to 50% by the Group to acquire a Kai Tak site for residential development – The Pavilia Forest. The residential development features 1,305 residential apartments with a total saleable floor area of approximately 508,000 sq. ft. and an expected total GDV of approximately HK $10.4 billion. The development was completed in August 2025 and commenced the handover process in September 2025. As at 30 September 2025, the expected attributable GDV of the completed stocks available for sale was approximately HK$9.2 billion (attributable GDV of approximately HK$4.6 billion) worth of units. Of this amount, approximately HK$1.9 billion has been recorded as contracted sales. A majority of buyers opted for a cash payment plan, benefitting the Group by reducing finance costs.
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– 43 – Manor Parc is a residential development at Tan Kwai Tsuen consisting of 24 town houses with approximately 50,000 sq. ft. in total saleable floor area. The development has been completed. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK$247 million. The remaining units will be sold on a completed basis. Marin Point is a residential development at Sha Tau Kok. This development is made up of 261 low-rise apartments with approximately 103,000 sq. ft. in total saleable floor area. The development has been completed. As at 30 September 2025, the expected GDV of completed stocks available for sale was approximately HK$521 million. Of this amount, approximately HK$5 million have been secured as contracted sales. The remaining units will be sold on a completed basis. The Group acquired a site in Lam Tei, Tuen Mun in June 2021. The project is currently in planning stage, with an expected total GDV estimated at HK$6.3 billion and a total saleable floor area of approximately 383,000 sq. ft.. The project is currently under planning stage. The Group formed a JV, in which the Group holds a 33.3% stake, to acquire a residential site in Ho Chung, Sai Kung, in September 2021. The development features 26 high-end houses with total saleable floor area of approximately 58,000 sq. ft. and an expected total GDV of approximately HK $1.4 billion (attributable GDV of approximately HK$472 million). Construction has commenced and is slated to complete in FY 2027. The development is expected to be launched for sales in F Y2027, subject to market condition. In September 2022, the G roup acquired the development right, through a tender conducted by URA, for a land that covers a site area of about 1,077.3 sq. m. at Sai Ying Pun, Hong Kong. It is a mixed-use residential and commercial development, featuring an expected saleable floor area of approximately 75,000 sq. ft. for residential units and 2,800 sq. ft. for commercial spaces. The development has obtained building plan approval. Foundation works of the project have been completed, and superstructure construction is underway. The development is slated for launch in FY 2027 and is expected to be completed in FY2028. The Group obtained planning approval for a site in Yau Kom Tau, Tsuen Wan, designated for mixed-use residential development. The project has a total expected GDV of approximately HK$3.1 billion and an expected saleable floor area of approximately 235,000 sq. ft.. The development is currently at the planning stage. Malaysia Dorsett Place Waterfront Subang, adjacent to the esteemed 5-star hotel Dorsett Grand Subang, is a development which the Group holds a 50% int erest. The development consists of three blocks and will offer 1,989 fully-serviced suites. The development was completed in September 2025. The revenue of Towers A and B has been rec ognised according to the progress of development and handover process of Towers A and B was commenced in September 2025. As at 30 September 2025, the expected attributable GDV of the completed stocks available for sales for Towers A and B was approximately HK$309 million. Of this amount, approximately HK $94 million was recorded as contracted sales. Tower C has not been launched and the Group is evaluating changing its use for long-term income purpose.
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– 44 – Singapore Cuscaden Reserve is a residential development site in the prime area of District 9 in Singapore. The Group has a 10% interest in the development. It is expected to provide approximately 17,000 sq. ft. in attributable saleable floor area. As at 30 September 2025, the development has been completed and fully settled. Property investment The Group’s property investments comprise investments in retail and office buildings primarily situated in Hong Kong, Chinese Mainland, Singapore, the UK and Australia. In 1H FY2026, a fair value loss on investment properties of approximately HK$77 million was recorded. As at 30 September 2025, the valuation of investment properties was approximately HK$5.9 billion (as at 31 March 2025: approximately HK$5.8 billion). Previously, the Group acquired two sites in Baoshan, Shanghai slated for the development of residential blocks designated for leasing purposes. One of the sites is completed with a lettable floor area of approximately 573,000 sq. ft., delivering approximately 1,700 units. Leasing operation is expected to commence in the second half of F Y2026. And the other site is initiating ground work. The site is expected to provide approximately 2,600 accommodation units. Completion of this site is expected in FY2029. 2. Hotel operations and management The Group owns and operates its hotel portfolio, Dorsett Hotels and Resorts through four distinct lines of business, which focus on the three to four-star hotel segment. These include the “Dorsett” core brand; the contemporary and lifestyle-focused “Dao by Dorsett” hotel brand; the “d.Collection” brand, which features boutique hotels with unique identities; and the “Silka” brand, which are value-led branded hotels for streamlined and cost-efficient stays. As at 30 September 2025 the Group owned a total of 38 hotels including the wholly- owned Dorsett Group, the Ritz-Carlton hotels in Perth and Melbourne, HubX Shanghai, the partially-owned Palasino Group, Dorsett Gold Coast and The Star Grand in Australia, as well as Dorsett Changi City and Dao by Dorsett AMTD in Singapore. There are approximately 9,700 rooms distributed across Chinese Mainland, Hong Kong, Malaysia, Singapore, Australia, the UK and Continental Europe.
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– 45 – On 23 September 2025, the Group soft-launched Dorsett Canary Wharf London in London, the UK. The hotel offers 237 contemporary guest rooms, versatile conferencing facilities and food and beverage servers. It is strategically located in the heart of Canary Wharf, one of London’s CBDs catering to both corporate and leisure demand. On 29 September 2025, the Group opened HubX Shanghai in Chinese Mainland, the 115-room hotel is adjacent to the Shanghai University, which has over 40,000 full-time students. This is the Group’s first hostel in Shanghai. The operating performance of the Group’s owned hotels summarised by region for 1H FY2026 is as follows. The results of hotels by region are expressed in the respective local currency (“LC”) and Hong Kong dollars. Occupancy rate (“OCC”) Average room rate (“ARR”) Revenue per available room (“RevPAR”) Revenue 1H FY2026 1H FY2025 1H FY2026 1H FY2025 % Change 1H FY2026 1H FY2025 % Change 1H FY2026 1H FY2025 (LC) (LC) (LC) (LC) (LC’million) (LC’million) Hong Kong (HK$) 83.4% 80.8% 685 645 6.2% 571 521 9.6% 370 292 Malaysia (MYR) 63.1% 62.9% 234 224 4.5% 148 141 5.0% 51 49 Chinese Mainland (RMB) 55.4% 64.9% 355 354 0.3% 197 230 (14.3%) 84 99 Singapore (SGD) (i) 83.5% 84.7% 195 198 (1.5%) 163 168 (3.0%) 10 10 United Kingdom (GBP) 79.4% 86.1% 135 130 3.8% 107 112 (4.5%) 9 9 Australia (AUD) (ii) 68.8% 62.9% 368 351 4.8% 253 221 14.5% 57 49 (HK$) (HK$) (HK$) (HK$) (HK$ million) Dorsett Group Total (iii) 72.9% 72.7% 784 745 5.2% 572 542 5.5% 983 891 Palasino Group 58.8% 58.4% 722 713 1.3% 428 420 1.9% 87 86 Notes: (i) Excludes Dao by Dorsett AMTD Singapore and Dorsett Changi City Singapore which are equity accounted. (ii) Excludes Dorsett Gold Coast and The Star Grand which are equity accounted. (iii) Excludes Palasino Group but includes Ritz-Carlton Perth, Ritz-Carlton Melbourne and HubX Shanghai.
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– 46 – In 1H FY2026, D orsett Group recorded a total revenue of approximately HK $983 million, representing an increase of 10.3% fro m approximately HK$891 million in 1H FY2025. OCC stood at 72.9%, marking a slight increase of 0.2 percentage points as compared with 72.7% in 1H FY2025. ARR increased by 5.2% to approximately HK$784 from approximately HK $745 as compared with the same period last year. As a result, RevPAR increased by 5.5% to appr oximately HK $572 per night in 1H FY2026 from approximately HK$542 per night in 1H FY2025. The Group also recorded a growth in rental, food and beverage, and other income in addition to the increase in room revenue. Looking ahead, the Dorsett Group will pursue its strategic growth and geographic resilience by transitioning toward an asset-light model. Hong Kong The Group’s hotel operations in Hong Kong experienced a moderate increase in 1H FY2026 in both OCC and ARR. Overall OCC increased by 2.6 percentage points to 83.4% in 1H FY2026, as compared to 80.8% in 1H FY2025. ARR also rose by 6.2% to approximately HK $685 from approximately HK $645 in 1H FY2025. As a re sult, total revenue for the Group’s Hong Kong hotels increased 26.5% to approximately HK$370 million in 1H FY2026, as compared to the same period last year. Performance in the Hong Kong’s hospitality sector reflects a competitive landscape where hotels are adapting pricing strategies to balance occupancy gains amid rising operational costs and regional rivalry. The sector grapples with challenges such as cost- conscious spending from Chinese Mainland visitors, a strong Hong Kong dollar curbing affordability, and evolving patterns where short-stay trips favour Shenzhen alternatives. Bolstered by supportive government policies, including the Tourism Blueprint 2.0 with HK$1.2 billion allocated for implementation and expanded Individual Visit Scheme to 59 cities in Chinese Mainland, the Group is confident in Hong Kong’s strong outlook as Asia’s events capital. Looking ahead, the Group will continue strategic initiatives to drive OCC and revenue, including targeted marketing, partnerships with attractions such as Kai Tak Sports Park, and innovative offerings tailored to evolving leisure and business traveller preferences. Malaysia In 1H FY2026, Malaysia’s tourism and hotel industries demonstrated strong momentum, driven by a steady influx of both domestic and international visitors. This growth was propelled by the extended mutual visa-free policy with Chinese Mainland, alongside similar exemptions for Indian nationals. During 1H F Y2026, revenue from the Group’s hotels in Malaysia increased 4.2% to approximately MYR51 million as compared with 1H FY2025. The OCC reached 63.1%, reflecting a slight increase of 0.2 percentage points from 62.9% in the same period last year. ARR experienced an increase of 4.5%, rising to approximately MY R234 as compared with approximate ly MYR224 in 1H FY2025. Re vPAR continued its upward trend, rising 5.0% to approximately MY R148 in 1H FY2026 from approximately MYR141 in 1H FY2025. This indicates strengthening demand for accommodations as more tourists choose Malaysia as their preferred destination.
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– 47 – The outlook for Malaysia’s tourism and hotel sectors remains robust. Ongoing infrastructure upgrades, enhanced connectivity, and promotion of eco-cultural experiences will drive sustained growth. The Group remains committed to delivering outstanding service and innovative hospitality solutions, ensuring its hotels thrive in this revitalising market and positioning them for sustained success in the years ahead. Chinese Mainland In 1H FY2026, Chinese Mainland’s domestic tourism remained strong, fuelled by longer holidays and government vouchers for cultural and rural travel. However, Chinese Mainland’s hospitality sector is highly competitive due to the rapid expansion of domestic and foreign hotel brands. In addition, rising price sensitivity and economic caution limited consumers’ discretionary spending, while a shift in travel consumption patterns, with travellers increasingly favouring short-haul and budget-friendly options, further diluted demand. At the same time, expanded visa-free entry and a surge in outbound travel shifted demand overseas. This triple pressure – domestic spending restraint, changing travel habits, and outbound flow impacted the profitability of the Group’s hotels in Chinese Mainland. In 1H FY2026, OCC decreased 9.5 percentage points to 55.4% as compared with 64.9% in 1H FY2025. However, ARR experienced a slight increase of 0.3% to approximately RMB355 from approximately RMB354 in the same period last year. As a result, RevPAR decreased 14.3% to approximately RMB197 per night in 1H FY2026 from approximately RMB230 per night in 1H FY2025. Overall, the revenue for the Group’s hotels in Chinese Mainland decreased 15.4% to approximately RMB84 million in 1H FY2026 as compared with approximately RMB99 million in 1H FY2025. Despite softer results, the Group remains optimistic about prospects. Visa-free access extended to 46 countries, 240- hour transit exemptions, RMB590 billion in railway upgrades, and domestic stimulus via subsidies and digital platforms is expected to drive inbound and domestic demand, supporting stronger performance ahead. Singapore Singapore’s tourism sector delivered a mixed performance in 1H F Y2026. Visitor arrivals in the first quarter were broadly in line with previous year, while the second quarter recorded year-on-year growth. The improvement was supported by key demand drivers, including the World Aquatics Championships, the local university graduation season and school holidays in China. Key factors affecting the overall 1H FY2026 results included tariff tensions that began in April 2025, the strong Singapore dollar relative to currencies of neighbouring countries, and an oversupply of hotel rooms. The latter was particularly acute in the Chinatown area, which saw an increase of nearly 1,000 rooms, impacting both OCC and ARR for hotels.
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– 48 – Amid this, the Group’s hotel in Singapore reported a decrease in OCC of 1.2 percentage points to 83.5% as compared with 1H FY2025. ARR also experienced a slight decrease of 1.5% to approximately SG D195 from approximately SG D198 in 1H FY2025. This contributed to 3.0% reduction in RevPAR to approximately SGD163 per night. Overall, total revenue from the Group’s hotel in Singapore dropped slightly to approximately SGD10 million. Looking ahead, the Group remains optimistic that ongoing investments in tourism infrastructure, stronger MICE (Meetings, Incentives, Conferences, Exhibitions) business, corporate travel recovery and anticipated growth in regional leisure arrivals will drive improved occupancy and revenue momentum in the coming periods. UK In 1H FY2026, the UK hospitality sector demonstrated a negative trajectory, driven by the slight decline of both domestic and international travellers. Amid challenges such as rising operational costs and ongoing competition from other European cities, the OCC of the Group’s hotels in London decreased 6.7 percentage points to 79.4% as compared with 86.1% in 1H FY2025. ARR experienced an increase of 3.8% to approximately GBP135, while RevPAR recorded a decrease of 4.5% to approximately GB P107 per night from approximately GBP112 per night in 1H FY2025. Overall, total revenue from the Group’s hotels in the UK dropped slightly to approximately GBP8 million, at a level similar to the same period last year. The stable revenue was mainly attributable to corporate contracts as well as wholesale groups and strong summer holiday demand in the region. The Group soft-opened Dorsett Canary Wharf London on 23 September 2025. The hotel is at its ramp-up phase and when fully opened, it is expected to contribute to the Group’s UK hotels’ performance. The addition is strategically planned to strengthen the Group’s presence in the region, addressing the growing demand for quality accommodations in London’s dynamic urban centre. Australia The Group currently owns four operating hotels in Australia. The Ritz-Carlton Perth, The Ritz-Carlton Melbourne and Dorsett Melbourne are fully owned, while Dorsett Gold Coast is owned through a JV with 33.3% stake. During 1H F Y2026, overall OCC of the Group’s hotels in Australia improved by 5.9 percentage points to 68.8% from 62.9% in 1H FY2025, and ARR surged by 4.8% to approximately AU D368 from approximately AU D351 in 1H FY2025, resulting in an increase in RevPAR by 14.5% to approximately AU D253 per night, as compared with the same period last year. Demand recovery drove growth in general and all major cities in Australia recorded an improvement in hotel occupancy.
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– 49 – While other leisure-centric cities experienced contraction as Australians opted for international travel or returned to major cities, the performance of the Group’s hotels in Melbourne remained resilient in terms of OCC. Overall, the Group’s hotels in Australia generated total revenue of approximately AUD57 million in 1H FY2026, reflecting an increase of 16.4% as compared to 1H FY2025. With several major sporting events on the cards across the country, performance is poised for a positive run. Looking ahead, the Group is set to launch a new hotel in Perth, further expanding its footprint in Australia. This expansion will not only strengthen the Dorsett brand in the region but also position the Group for continued growth and success in the competitive hospitality landscape. 3. Car park operations and facilities management The Group’s car park operations and facilities management business, including the “Care Park” and Australian Property Management brands, with a portfolio of car park bays owned or managed amounting to approximately 107,000 car park bays as at 30 September 2025. Among the 313 car parks, 22 are self-owned with 6,172 car park bays and one is JV owned with 383 car park bays. The remaining car park bays in Australia, New Zealand, the UK, Hungary and Malaysia are under management contracts with third-party car park owners. Revenue from car park operations and facilities management was approximately HK$343 million, a 9.7% decrease as compared with 1H F Y2025. The decrease in revenue is attributed to the continued strategic phase out of underperforming car parks and the adjusted gross profit margin (i), a non-GAAP financial measure, decreased to 20.1% in 1H FY2026, which is primarily driven by the disposal of a car park in Boundary Farm, Manchester, the UK in September 2024 and the increase in property holding cost, including land tax. The Group launched a mobile application (“Care Park Application”) to enhance user experience and operational efficiency. The third phase of the Care Park Application is currently in final testing and will be launched in the next quarter. The Group has invested in new technology that incorporates the Care Park Application and noting an increase in yield management and positive customer feedback. As part of the Group’s monetisation strategy, the Group entered into an agreement to dispose a car park in Sydney, Australia in October 2025 and the transaction is expected to be completed in January 2026. Note: (1) Represents a non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “non-GAAP financial measures” section below.
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– 50 – 4. Gaming operations and facilities management Palasino Group The Group operates its portfolio of one integrated land-based casino and two full- service land-based casinos in the Czech Republic under Palasino Group which features slot machines and gaming tables. Palasino Group was separately listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on 26 March 2024. The Group currently owns 71.62% of Palasino Group. Revenue from the Group’s gaming business in 1H F Y2026 were approximately HK$218 million, an increase of 11.4%, compared to approximately HK $196 million in 1H FY2025. The increase was primarily due to increased visitation as a result of the successful marketing campaign launched in Austria. The following tables set forth certain operating data of Palasino’s casinos for the period ended 30 September 2025: As at 30 September 2025 As at 31 March 2025 Number of slot machines 638 630 Number of tables 57 57 1H FY2026 1H FY2025 Slots revenue (HK$ million) 171 158 Table game revenue (HK$ million) 47 38 Average slot win per machine per day (HK$) (i) 1,510 1,524 Table games hold percentage (ii) 26.9% 23.6% Notes: (i) Average slot win per machine per day is defined as divide the total slot machine gross win by the average number of slot machines on opening and closing and subsequently divide by the number of days the machines were operational. (ii) Table hold percentage is defined as total gross win in table game divided by the table games drop.
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– 51 – Investments in QWB Project The Group together with its JV partner has partnered with The Star to establish DBC for the QWB Project in Brisbane. This development features three world-class hotels, a high-end casino with private gaming areas, food and beverage outlets, more than 6,000 sq. m. of retail and dining space, and thousands of car parking spaces. DBC holds a 99-year casino license in Brisbane, which includes a 25-year exclusivity within 60 kilometre of Brisbane CBD. DBC has also received approval for up to 2,500 electronic gaming machines and unlimited gaming tables, including electronic derivations. The initial phase of the high-end casino, The Star Brisbane, opened to the public on 29 August 2024, with The Star serving as the casino operator under the casino management agreement. This phase features the main gaming floor and premium gaming rooms housing approximately 1,600 slot machines and 180 gaming tables. It also includes The Star Grand with 340 rooms, an event centre, Sky Deck, car parks, public spaces, and food and beverage outlets. The development is connected to the Neville Bonner pedestrian bridge. Further food and beverage venues and the leisure deck will be opened progressively throughout FY2026 and FY2027. On 12 August 2025, the Group entered into an Implementation Deed with The Star, such that the Group’s stake in the QWB Project will increase up to 50% upon the completion of the transaction. For details, please refer to the announcements of the Company dated 12 August 2025 and 17 November 2025.
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– 52 – ENVIRONMENTAL, SOCIAL AND GOVERNANCE The Group remains committed to advancing a sustainable future by transforming climate change initiatives into long-term business opportunities. Building on prior efforts, the Group is progressing the development of its net zero strategy roadmap, ensuring alignment with the latest climate science, internationally recognised standards, and best practices. Emissions Projections are being refined to support both near-term and long-term target setting. In 1H FY2026, the Group further strengthened its ESG agenda, reinforcing resilience and sustainable value creation for shareholders. Leveraging the task force on climate-related financial disclosures framework, the Group expanded its climate risk assessment by conducting additional scenario analyses and deepening stakeholder engagement to identify material risks and opportunities across its operations. The operational and financial implications of these findings have been integrated into the Group’s risk management and strategic planning processes, ensuring preparedness for evolving regulatory requirements and positioning the Group to capture opportunities in the transition to a low-carbon economy. At the same time, the Group enhanced its monitoring and reporting capabilities through the continued deployment of its AI-enabled carbon reporting tool. This system has improved the frequency, efficiency, and granularity of emissions data collection and analysis, providing management with actionable insights to support decision-making. Collectively, these initiatives underscore the Group’s determination to drive meaningful progress, strengthen resilience, and inspire broader participation in the journey toward a sustainable and climate-resilient future. OUTLOOK The past six months have been marked by a challenging operating environment. Elevated interest rates and persistent macroeconomic volatility continued to exert pressure on financial performance. In response, the Group remains focused on cost control and debt reduction, with the monetisation of non-core assets and businesses remaining a central strategic objective. The Group has demonstrated strong discipline in managing its capital structure. As at 30 September 2025, net debt decreased by approximately 5.8% to HK$20,247 million, and the adjusted net gearing ratio (i), a non-GAAP financial measure, declined to 64.9% from 67.6% compared with 31 March 2025. This improvement reflects the Group’s commitment to prudent financial management and disciplined capital allocation. Looking ahead, the Group will continue to prioritise the reduction of net debt and further improvement of its gearing position through active portfolio refinement, monetisation of non-core assets, and careful deployment of capital. In property development, the expected attributable GDV of the Group’s active residential property development projects across various stages was approximately HK$61.8 billion as at 30 September 2025. This pipeline is considered sufficient to support revenue growth over the next six to eight years. Accordingly, the Group does not anticipate urgent need of immediate land replenishment and will continue to adopt a selective and disciplined approach to future land acquisitions.
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– 53 – In March 2025, the Group launched 640 Bourke Street in Melbourne. Market reception was strong, reinforcing the Group’s near-to-medium-term revenue pipeline. The Group may consider launching its Sai Ying Pun project in Hong Kong and a 33.3% JV project in Ho Chung, Sai Kung, Hong Kong during FY2027, subject to market condition. As at 30 September 2025, the cumulative attributable presales value and unbooked contracted sales stood at approximately HK$9.3 billion, providing considerable visibility and capital for the future development. The Group’s long-lease development in Baoshan, Shanghai was completed and is expected to commence leasing operations in the second half of FY2026. This project will introduce a new stream of recurring cash inflows and further strengthen the Group’s financial position. In hotel operation and management business, Dorsett Kai Tak, Hong Kong, which is adjacent to the Kai Tak Sports Park, is expected to continue to benefit from the increased visitor traffic following the commencement of major events. Revenue contribution from this flagship property is anticipated to stabilise and materialise during the year and beyond. The Group currently has four hotels in the development pipeline. Dorsett Perth is scheduled to open within the next 12 months. The addition is expected to enhance the Group’s overall hotel performance. Looking ahead, the Group maintains a positive outlook for sustained growth in the hospitality sector, supported by rising demand from both corporate and leisure travellers. In car park operations, the Group continues to review its portfolio and remains committed to divesting or discontinuing underperforming or mature assets to streamline operations. Concurrently, the Group is actively pursuing new management contracts as part of its transition towards an asset-light model. Investments in digital transformation are also underway to improve user experience and operational efficiency across the portfolio. Within the gaming segment, Palasino Group is actively exploring opportunities to expand its footprint into Asia. Plans are underway to launch a new casino in Mikulov, Czech Republic, in the second half of FY2026 or the first half of FY2027. The Group’s investment in the QWB project, which had its soft opening in August 2024, is expected to deliver long-term value despite initial expenses. The Group remains confident in the project’s growth prospects, particularly in light of the 2032 Olympic Games in Brisbane, which is anticipated to drive tourism and economic expansion. The Group has entered into the Implementation Deed to restructure its investment in QWB, which is expected to unlock opportunities for operational improvement and portfolio optimisation. The Group continues to monetise non-core assets and businesses to generate cash inflows. It is also evaluating the potential capitalisation of hotel revaluation surplus to enhance financial flexibility. During the 1H FY2026, the Group continued to undertake material impairments as part of its prudent financial adjustments. These measures are expected to lay the foundation for improved future performance and ensure the Group remains well-positioned for sustainable growth.
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– 54 – To preserve a strong financial position, the Group remains committed to optimising its balance sheet, refining its portfolio, and executing monetisation strategies for non-core assets and businesses to support debt repayment and reduce overall leverage amid ongoing market volatility. With several landmark projects approaching completion and handover, the Group expects visible cash inflows that will contribute to further improvements in gearing and capital structure. Despite the uncertain economic environment, the Group continues to adopt a prudent and disciplined approach to financial management. Note: (i) Rep resents a Non-GAAP financial measure which is defined and reconciled to the nearest comparable GAAP measures in the “Non-GAAP financial measures” section below. NON-GAAP FINANCIAL MEASURES To supplement the consolidated results of the Group prepared in accordance with HKFRS, non-GAAP financial measures of adjusted cash profit, adjusted cash profit margin, adjusted gross profit, adjusted gross profit margin, adjusted net asset value attributable to shareholders, adjusted net asset value per share, adjusted total assets, adjusted net gearing ratio, adjusted total equity, adjusted revenue and adjusted revenue from property development have been presented in this announcement. The Company’s management believes that the non-GAAP financial measures provide investors with clearer view on the Group’s financial results, and with useful supplementary information to assess the performance of the Group’s strategic operations by excluding certain non-cash items and certain impact from non-recurring activities and minority interests. Nevertheless, the use of these non-GAAP financial measures has limitations as an analytical tool. These unaudited non-GAAP financial measures should be considered in addition to, and not as a substitute for, analysis of the Group’s financial performance prepared in accordance with HKFRS. In addition, these non-GAAP financial measures may be defined differently from similar terms used by other companies. Adjusted cash profit represents the loss attributable to shareholders of the Company before (i) change in fair value of financial assets at fair value through profit or loss (“FVTPL”); (ii) loss on disposal of debt instruments at fair value through other comprehensive income (“FVTOCI”); (iii) change in fair value of derivative financial instruments; (iv) reversal of impairment loss on amount due from a JV; (v) change in fair value of investment properties (after tax); (vi) impairment loss under expected credit loss (“ECL”) model recognised on trade debtors; (vii) impairment loss under ECL model recognised on debt instruments at FVTOCI; (viii) impairment loss recognised on deposits for acquisition of property, plant and equipment; (ix) impairment loss on properties for sale; (x) share of impairment loss recognised by a JV; (xi) share of impairment loss recognised by an associate; and (xii) depreciation and impairment; and adjusted for minority interests. We do not believe said items are reflective of our core cash profit from our operating performance during the periods presented.
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– 55 – Adjusted cash profit margin represents the adjusted cash profit (as defined above) which represents the loss attributable to shareholders of the Company before (i) change in fair value of financial assets at FVTPL; (ii) loss on disposal of debt instruments at FVTOCI; (iii) change in fair value of derivative financial instruments; (iv) reversal of impairment loss on amount due from a JV; (v) change in fair value of investment properties (after tax); (vi) impairment loss under ECL model recognised on trade debtors; (vii) impairment loss under ECL model recognised on debt instruments at FVTOCI; (viii) impairment loss recognised on deposits for acquisition of property, plant and equipment; (ix) impairment loss on properties for sale; (x) share of impairment loss recognised by a JV; (xi) share of impairment loss recognised by an associate; and (xii) depreciation and impairment; and adjusted for minority interests divided by the revenue. We do not believe said items are reflective of our core cash profit margin from our operating performance during the periods presented. Adjusted gross profit represents gross profit before depreciation and excludes depreciation of leased properties under HKFRS 16. We do not believe said items are reflective of our core cash profit from our operating performance during the periods presented. Adjusted gross profit margin represents the adjusted gross profit which represents the gross profit before depreciation and excludes depreciation of leased properties under HKFRS 16 divided by the revenue. We do not believe said items are reflective of the Group’s core cash profit margin from the Group’s operating performance during the periods presented. Adjusted net asset value attributable to shareholders represents the equity attributable to shareholders of the Company after accounting the hotel revaluation surplus which was based on independent valuation carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the a djustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025 and was not recognised in the Group’s consolidated financial statements. We believe the adjustment of hotel revaluation surplus brings a more meaningful and useful information of the asset value of the Group. Adjusted net asset value per share represents the adjusted net asset value attributable to shareholders after adjusting for the hotel revaluation surplus which was based on independent valuation carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025 and was not recognised in the Group’s consolidated financial statements divided by the number of shares issued as at 30 September 2025, respectively. We believe the adjustment of hotel revaluation surplus brings a more meaningful and useful information of the asset value of the Group. Adjusted total assets represent the total assets after accounting for the hotel revaluation surplus which was based on independent valuation carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025 and was not recognised in the Company’s consolidated financial statements. We believe the adjustment of hotel revaluation surplus brings a more meaningful and useful information of the asset value of the Group.
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– 56 – Adjusted total equity represents the total equity includes the 2019 Perpetual Capital Notes and after accounting for the hotel revaluation surplus which was based on independent valuation carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025 and was not recognised in the Group’s consolidated financial statements. We believe the adjustment of hotel revaluation surplus brings a more meaningful and useful information of the asset value of the Group. Adjusted net gearing ratio represents the net debts (total bank loans, notes and bonds less investment securities, restricted bank deposits, deposits in financial institutions, bank balances and cash) to adjusted total equity which includes the 2019 Perpetual Capital Notes and after accounting for the hotel revaluation surplus which was based on independent valuation carried out as at 31 March 2025, ex cept for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025 and was not recognised in the Group’s consolidated financial statements. We believe the adjustment of hotel revaluation surplus brings a more meaningful and useful information of the asset value of the Group. Adjusted revenue represents the consolidated revenue after adjusting for the sales generated from JV residential property projects, including The Pavilia Forest in Hong Kong, Dorsett Place Water from Subang in Malaysia and Queen’s Wharf Residences (Tower 4) in Brisbane, Australia, which is not presented as the consolidated revenue in the financial statements and accounted in the share of results from JVs by equity accounting which is not presented as the consolidated revenue in the financial statements. It enhances the overall understanding of the Group’s core operating performance during the year presents. Adjusted revenue from property development represents the segment revenue of property development after adjusting for the sales generated from JV residential property projects, including The Pavilia Forest in Hong Kong, Dorsett Place Water from Subang in Malaysia and Queen’s Wharf Residences (Tower 4) in Brisbane, Australia, which is not presented as the consolidated segment revenue of property development in the financial statements and accounted in the share of results from JVs by equity accounting which is not presented as the consolidated segment revenue of property development in the financial statements. It enhances the overall understanding of the Group’s core operating performance during the year presents.
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– 57 – The following tables set forth the reconciliations of the Group’s non-GAAP financial measures for the years ended 30 September 2025 and comp arative figures to the nearest measures prepared in accordance with HKFRS: 1H FY2026 1H FY2025 HK$’000 HK$’000 Loss attributable to shareholders of the Company (988,420) (769,907) Less: Change in fair value of financial assets at FVTPL (58,780) (2,013) (Gain)/loss on disposal of debt instruments at FVTOCI (318) 21,122 Change in fair value of derivative financial instruments (4,462) (44) Reversal of impairment loss under ECL model on amount due from a JV (10,047) – Add: Change in fair value of investment properties (after tax) 85,412 115,953 Impairment loss under ECL model recognised on trade debtors 7,523 5,468 Impairment loss under ECL model recognised on debt instruments at FVTOCI – 9,372 Impairment loss recognised on deposits for acquisition of property, plant and equipment 88,427 – Impairment loss on properties for sale 193,296 – Share of impairment loss recognised by a JV 530,000 217,125 Share of impairment loss recognised by an associate 110,368 204,385 Depreciation and impairment of property, plant and equipment (i) 250,325 231,881 Adjusted cash profit (Non-GAAP) 203,324 33,342 Adjusted cash profit margin (Non-GAAP) 5.4% 0.6% 1H FY2026 1H FY2025 HK$’000 HK$’000 Gross profit 918,686 1,433,675 Depreciation (ii) 179,081 181,009 Impairment 209,208 – Adjusted gross profit (Non-GAAP) 1,306,975 1,614,684 Adjusted gross profit margin (Non-GAAP) 34.8% 31.2%
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– 58 – As at 30 September 2025 As at 31 March 2025 HK$’million HK$’million Equity attributable to shareholders of the Company 9,568 9,824 Hotel revaluation surplus (iii) 18,350 18,681 Adjusted net asset value attributable to shareholders (Non-GAAP) 27,918 28,505 Number of shares issued (million) 3,059 3,059 Adjusted net asset value per share (Non-GAAP) HK$9.13 HK$9.32 As at 30 September 2025 As at 31 March 2025 HK$’million HK$’million Total assets 41,056 42,543 Hotel revaluation surplus (iii) 18,350 18,681 Adjusted total assets (Non-GAAP) 59,406 61,224 As at 30 September 2025 As at 31 March 2025 HK$’million HK$’million Total equity 12,842 13,099 Hotel revaluation surplus (iii) 18,350 18,681 Adjusted total equity (Non-GAAP) 31,192 31,780 Net debts 20,247 21,493 Adjusted net gearing ratio (net debts to adjusted total equity) (Non-GAAP) 64.9% 67.6%
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– 59 – 1H FY2026 1H FY2025 HK$’000 HK$’000 Revenue 3,755,780 5,171,742 Attributable sales from JV residential projects 1,184,264 76,466 Adjusted revenue (Non-GAAP) 4,940,044 5,248,208 1H FY2026 1H FY2025 HK$’000 HK$’000 Revenue from property development 2,042,260 3,519,437 Attributable sales from JV residential projects 1,184,264 76,466 Adjusted revenue from property development (Non-GAAP) 3,226,524 3,595,903 Notes: i. Represents the aggregate amount of depreciation expense recognised in cost of sales and administrative expenses for the year but excludes any minority interests. ii. Represents the depreciation expense recognised in cost of sales but excludes the depreciation expenses of leased properties under HKFRS 16. iii. Based on the independent valuations carried out as at 31 March 2025, except for (i) Lushan Resort, HubX Shanghai and Dorsett Canary Wharf London which were accounted for based on independent valuations assessed after 31 March 2025; and (ii) the adjustment in Dorsett Wuhan, where certain areas were reclassified as investment property as at 30 September 2025. EMPLOYEES AND REMUNERATION POLICIES As at 30 September 2025, the Group had approximately 4,200 employees. The Group provides its employees with comprehensive benefit packages and career development opportunities, including medical benefits, both internal and external trainings appropriate for various level of staff roles and functions. COMPLIANCE WITH CORPORATE GOVERNANCE CODE Throughout the six months ended 30 September 2025, the Company has complied with the code provisions (the “Code Provisions”) set out in the Corporate Governance Code (the “CG Code”) contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange, except for the deviation from Code Provision C.2.1 described below. Pursuant to Code Provision C.2.1 of the CG Code, the roles of chairman and chief executive should be separate and should not be performed by the same individual. Currently Tan Sri Dato’ David CHIU assumes the roles of both the Chairman and Chief Executive Officer of the Company. The Board believes that this structure provides the Group with strong and consistent leadership and allows for more effective and efficient business planning and decisions as well as execution of long-term business strategies. As such, it is beneficial to the business prospects of the Group.
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– 60 – PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES During the six months ended 30 September 2025, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities (including treasury shares). As at 30 September 2025, there were no treasury shares held by the Company. AUDIT COMMITTEE The Audit Committee, comprising all of the Company’s three independent non-executive directors, namely Mr. Wai Hon Ambrose LAM, Mr. Kwong Siu LAM and Mr. Lai Him Abraham SHEK, has reviewed the accounting principles, standards and practices adopted by the Company, and discussed matters relating to auditing, risk management and internal control and financial reporting, including the review of the unaudited consolidated interim results of the Group for the six months ended 30 September 2025. PUBLICATION OF THE INTERIM RESULTS AND INTERIM REPORT This results announcement is published on the website of the Stock Exchange at www.hkexnews.hk and on the website of the Company at www.fecil.com.hk . The Interim Report of the Company for the six months ended 30 September 2025 will be despatched to the Shareholders (if necessary) and published on the websites of the Stock Exchange and the Company in due course. SUPPLEMENTAL INFORMATION IN RELATION TO 2025 ANNUAL REPORT Reference is made to the annual report of the Company for the year ended 31 March 2025 (the “2025 Annual Report”). The Board would like to provide the following additional information to the section headed “CONTINUING CONNECTED TRANSACTIONS” in the Directors’ Report of the 2025 Annual Report. Unless otherwise defined, capitalised terms used in this section shall have the same meanings as those defined in the section headed “CONTINUING CONNECTED TRANSACTIONS” in the Directors’ Report of the 2025 Annual Report. The annual cap of aggregate fees receivable by the Group from the New Hotel Management Contracts and Trademark License Agreements for the year ended 31 March 2025 was set at HK$4,500,000. The aggregate fees recognised from the New Hotel Management Contracts and Trademark License Agreements for the year ended 31 March 2025 amounted to approximately HK$3,781,000. By order of the Board of Far East Consortium International Limited Wai Hung Boswell CHEUNG Company Secretary Hong Kong, 27 November 2025 As at the date of this announcement, the Board comprises six executive directors, namely Tan Sri Dato’ David CHIU, Mr. Cheong Thard HOONG, Mr. Dennis CHIU, Mr. Craig Grenfell WILLIAMS, Ms. Wing Kwan Winnie CHIU and Ms. Jennifer Wendy CHIU; and three independent non-executive directors, namely Mr. Kwong Siu LAM, Mr. Wai Hon Ambrose LAM and Mr. Lai Him Abraham SHEK.