Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this 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. KWG Living Group Holdings Limited (Incorporated in the Cayman Islands with limited liability) (Stock Code: 3913) ʮ̡ (1) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 AND (2) CHANGE OF PRINCIPAL PLACE OF BUSINESS IN HONG KONG SUMMARY OF INTERIM RESULTS • Revenue for the six months ended 30 June 2026 amounted to approximately RMB1,570.2 million, representing a decrease of approximately 5.3% as compared with the corresponding period in 2025. • Gross profit for the six months ended 30 June 2026 amounted to approximately RMB351.7 million, representing a decrease of approximately 16.0% as compared with the corresponding period in 2025. • Loss for the six months ended 30 June 2026 amounted to approximately RMB155.0 million, representing a decrease of approximately 44.0% as compared with the corresponding period in 2025. (1) UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “ Board”) of directors (the “ Directors”) of KWG Living Group Holdings Limited (the “ Company”) announces its unaudited condensed consolidated financial results of the Company and its subsidiaries (the “ Group”, “ we”, “ us” or “our”) for the six months ended 30 June 2026, together with the corresponding comparative figures for the six months ended 30 June 2025. The unaudited condensed consolidated interim financial information for the six months ended 30 June 2026 (the “ Interim Financial Information ”) has been reviewed by the audit committee of the Company (the “ Audit Committee ”).
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– 2 – CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) REVENUE 4 1,570,188 1,658,137 Cost of sales (1,218,497) (1,239,313) Gross profit 351,691 418,824 Other income and gains 5 5,870 7,473 Selling and distribution expenses (1,995) (2,261) Administrative expenses (193,033) (206,665) Other expenses, net (287,059) (370,291) Finance costs (6,926) (11,082) Share of profit and loss of: Joint ventures (910) (278) Associates 392 93 LOSS BEFORE TAX 6 (131,970) (164,187) Income tax expenses 7 (23,061) (112,439) LOSS FOR THE PERIOD (155,031) (276,626) Attributable to: Owners of the parent (152,357) (268,121) Non-controlling interests (2,674) (8,505) (155,031) (276,626) LOSSES PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT: Basic (expressed in RMB cents per share) 8 (7.52) (13.23) Diluted (expressed in RMB cents per share) 8 (7.52) (13.23)
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– 3 – CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) LOSS FOR THE PERIOD (155,031) (276,626) OTHER COMPREHENSIVE INCOME/(LOSS) Other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods: Exchange differences on translation of foreign operations 55,232 (58,304) Other comprehensive (loss)/income that will not be reclassified to profit or loss in subsequent periods: Exchange differences on translation of the Company (86,865) 45,424 OTHER COMPREHENSIVE LOSS FOR THE PERIOD (31,633) (12,880) TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (186,664) (289,506) Attributable to: Owners of the parent (183,990) (281,001) Non-controlling interests (2,674) (8,505) (186,664) (289,506)
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– 4 – CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 27,437 27,122 Investment properties 3,265 3,265 Goodwill 9 553,793 630,120 Other intangible assets 287,630 317,867 Investment in joint ventures 28,620 29,530 Investment in associates 1,585 7,139 Deferred tax assets 260,766 239,774 Other non-current assets 2,842 2,842 Total non-current assets 1,165,938 1,257,659 CURRENT ASSETS Trade receivables 10 2,818,367 2,742,282 Prepayments, other receivables and other assets 755,794 696,241 Restricted cash 68,603 60,561 Cash and cash equivalents 992,212 1,219,248 Total current assets 4,634,976 4,718,332 CURRENT LIABILITIES Trade payables 11 777,695 684,734 Other payables and accruals 1,152,348 1,159,162 Contract liabilities 4 279,946 291,326 Lease liabilities 5,185 6,577 Interest-bearing bank and other borrowings 85,962 140,357 Tax payable 537,188 542,455 Total current liabilities 2,838,324 2,824,611 NET CURRENT ASSETS 1,796,652 1,893,721 TOTAL ASSETS LESS CURRENT LIABILITIES 2,962,590 3,151,380
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– 5 – As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT LIABILITIES Lease liabilities 3,916 6,027 Interest-bearing bank and other borrowings 287,733 273,975 Deferred tax liabilities 69,911 77,986 Total non-current liabilities 361,560 357,988 Net assets 2,601,030 2,793,392 EQUITY Share capital 17,568 17,568 Reserves 2,303,739 2,487,134 Equity attributable to owners of the parent 2,321,307 2,504,702 Non-controlling interests 279,723 288,690 Total equity 2,601,030 2,793,392
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– 6 – NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 1. CORPORATE AND GROUP INFORMATION The Company is a limited liability company incorporated in the Cayman Islands on 11 September 2019. The registered office of the Company is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. The Company is an investment holding company. During the six months ended 30 June 2026, the Group was involved in the provision of residential property management services and non-residential property management and commercial operational services in the People’s Republic of China (the “PRC”). In the opinion of the Directors, the immediate and ultimate holding company of the Company was Plus Earn Consultants Limited, which was incorporated in the British Virgin Islands (“ BVI”). 2.1 BASIS OF PRESENTATION The interim condensed financial information for the six months ended 30 June 2026 has been prepared in accordance with Hong Kong Accounting Standard (“ HKAS”) 34 Interim Financial Reporting . The Interim Financial Information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025, which have been prepared in accordance with HKFRS Accounting Standards (which include all Hong Kong Financial Reporting Standards (“HKFRSs” ), HKASs and Interpretations). 2.2 ADOPTION OF AMENDMENTS TO HKFRS The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended HKFRS Accounting Standards for the first time for the current period’s financial information. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to HKFRS Accounting Standards — Volume 11 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The adoption of the above new and amended HKFRS Accounting Standards has had no significant financial effect on the financial information and reference of the Group.
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– 7 – 3. OPERATING SEGMENT INFORMATION For management purposes, the Group is organised into two reportable operating segments as follows: (a) Residential property management services; and (b) Non-residential property management and commercial operational services. Management monitors the results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit, which is a measure of adjusted profit before tax. The adjusted profit before tax is measured consistently with the Group’s profit before tax except that interest income, finance costs, as well as head office and corporate income and expenses are excluded from such measurement. The revenue from external customers reported to management is measured as segment revenue, which is the revenue derived from the customers in each segment. No analysis of segment assets and segment liabilities is presented as this information is not regularly provided to the management for review. The following is an analysis of the Group’s revenue and results by operating and reportable segment: Six months ended 30 June 2026 Residential property management services Non-residential property management and commercial operational services Total RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) Segment revenue 820,816 749,372 1,570,188 Segment result 124,141 103,939 228,080 Reconciliation: Interest income and unallocated income 5,870 Unallocated expenses (358,994) Finance costs (6,926) Loss before tax (131,970) Income tax expenses (23,061) Loss for the period (155,031)
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– 8 – Six months ended 30 June 2025 Residential property management services Non-residential property management and commercial operational services Total RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) Segment revenue 833,961 824,176 1,658,137 Segment result 167,143 101,795 268,938 Reconciliation: Interest income and unallocated income 7,473 Unallocated expenses (429,516) Finance costs (11,082) Loss before tax (164,187) Income tax expenses (112,439) Loss for the period (276,626) Geographical information The Group’s revenue from customers is derived solely from its operations and services rendered in Chinese Mainland, and the non-current assets of the Group are mainly located in Chinese Mainland. Information about major customers For the six months ended 30 June 2026 and 2025, approximately RMB118,845,000 and RMB135,765,000 of revenue were derived from KWG Group Holdings Limited and its subsidiaries, joint ventures and associates, respectively.
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– 9 – 4. REVENUE AND CONTRACT LIABILITIES Revenue from contracts with customers Revenue comprised proceeds from residential property management services and non-residential property management and commercial operational services for the six months ended 30 June 2026 and 2025. An analysis of revenue is as follows: (a) Disaggregated revenue information Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Types of services by segment: Residential property management services Pre-sale management services 20,125 34,875 Property management services 726,898 725,983 Community value-added services 73,793 73,103 820,816 833,961 Non-residential property management and commercial operational services Pre-sale management services 2,429 5,093 Property management services 680,222 748,674 Commercial operational services 26,006 25,183 Other value-added services 40,715 45,226 749,372 824,176 Total revenue from contracts with customers 1,570,188 1,658,137 Timing of revenue recognition Revenue from contracts with customers recognised over time 1,528,274 1,590,221 Revenue from contracts with customers recognised at a point in time 41,914 67,916 Total 1,570,188 1,658,137
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– 10 – (b) Performance obligations Information about the Group’s performance obligations is summarised below: For residential property management services and non-residential property management and commercial operational services, the Group recognised revenue in the amount that equals to the rights to invoices which corresponds directly with the value to the customers of the Group’s performance to date. The Group has elected the practical expedient for not to disclose the remaining performance obligations for these types of contracts because the performance obligation is part of a contract that has an original expected duration of one year or less, and there was unsatisfied performance obligation at the end of the respective periods. Contract liabilities The Group recognised the following revenue-related contract liabilities: As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Third parties 277,102 288,533 Related parties 2,844 2,793 279,946 291,326 Contract liabilities of the Group mainly arise from the advance payments received from customers for services yet to be provided. 5. OTHER INCOME AND GAINS Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Interest income 637 1,040 Government grants 1,828 2,038 Gains on disposal of items of property, plant and equipment, net 467 80 Late penalty income 1,390 2,408 Tax incentives on value-added tax 1,365 1,178 Others 183 729 5,870 7,473
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– 11 – 6. LOSS BEFORE TAX The Group’s loss before tax is arrived at after charging/(crediting): Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Cost of services provided 1,218,497 1,239,313 Depreciation of property, plant and equipment* 5,715 14,479 Amortisation of other intangible assets** 31,599 38,239 Gain on disposal of items of property, plant and equipment, net (467) (80) Employee benefit expense (excluding Directors’ and chief executive’s remuneration)* Wages and salaries 449,016 506,763 Share-based compensation expenses 595 595 Pension scheme contributions 45,149 51,763 Other employee benefits 46,230 53,964 540,990 613,085 Impairment losses on property, plant and equipment*** — 28,775 Impairment losses on goodwill*** 76,327 84,450 Net impairment losses recognised on financial assets: Trade receivables*** 194,192 237,196 Prepayments, other receivables and other assets*** 12,347 14,589 * The depreciation of property, plant and equipment and employee benefit expense are included in “Cost of sales” and “Administrative expenses” in the condensed consolidated statement of profit or loss. ** The amortisation of other intangible assets is included in “Administrative expenses” in the condensed consolidated statement of profit or loss. *** Impairment losses on property, plant and equipment, impairment losses on goodwill and net impairment losses recognised on trade receivables, and prepayments, other receivables and other assets are included in “Other expenses, net” in the condensed consolidated statement of profit or loss. 7. INCOME TAX EXPENSES The Group is subject to income tax on an entity basis on profits arising in or derived from the tax jurisdictions in which members of the Group are domiciled and operate. Pursuant to the rules and regulations of the Cayman Islands and the BVI, the entities within the Group incorporated in the Cayman Islands and the BVI are not subject to any income tax. The Group’s subsidiaries incorporated in Hong Kong are not liable for income tax as they did not generate any assessable profits arising in Hong Kong during the six months ended 30 June 2026.
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– 12 – The income tax provision of the Group’s subsidiaries established in the PRC in respect of its operation in Chinese Mainland was calculated at the tax rate of 25% on their assessable profits for the six months ended 30 June 2026, if applicable, based on the existing legislation, interpretations and practice in respect thereof. Certain subsidiaries of the Group operating in the PRC enjoyed a preferential corporate income tax rate of 15% during the six months ended 30 June 2026. Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Current 52,129 59,571 Deferred (29,068) 52,868 23,061 112,439 8. LOSSES PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary equity holders of the parent of approximately RMB152,357,000 for the six months ended 30 June 2026 (for the six months ended 30 June 2025: approximately RMB268,121,000), and the weighted average number of shares of 2,025,858,916 (for the six months ended 30 June 2025: 2,025,858,916) in issue during the six months ended 30 June 2026. 9. GOODWILL 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) At beginning of the period/year: Cost 1,743,159 1,743,159 Accumulated impairment (1,113,039) (1,029,263) Net carrying amount 630,120 713,896 Net carrying amount at beginning of the period/year 630,120 713,896 Impairment during the period/year (76,327) (83,776) Net carrying amount at end of the period/year 553,793 630,120 At end of the period/year: Cost 1,743,159 1,743,159 Accumulated impairment (1,189,366) (1,113,039) Net carrying amount 553,793 630,120
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– 13 – Impairment testing of goodwill For the purpose of impairment testing, goodwill acquired through business combination is allocated to each of the cash-generating units (“ CGUs”), or groups of CGUs. The goodwill allocated to each of the CGUs is as follows: As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) CGU Guangdong Gangyu Enterprise Management Co., Ltd.* 134,718 134,718 Guangzhou Runtong Property Management Co., Ltd.* 125,490 125,490 Shanghai Shenqin Property Management Service Co., Ltd.* 439,567 439,567 Guangdong Telijie Environment Engineering Co., Ltd.* 135,678 135,678 Living Technology Co., Ltd.* 907,706 907,706 1,743,159 1,743,159 * The English name represents the best efforts made by the directors of the Company to translate the Chinese name as it does not have any official English name. Impairment test on the goodwill should be performed annually or when the management is aware of events and circumstance changes that might be identified as goodwill impairment indicators. Impairment losses on goodwill for the six months ended 30 June 2026 amounted to approximately RMB76,327,000 (for the six months ended 30 June 2025: approximately RMB84,450,000). 10. TRADE RECEIVABLES As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Related parties 2,524,917 2,415,255 Third parties 1,866,796 1,721,268 Trade receivables 4,391,713 4,136,523 Less: Allowance for impairment of trade receivables (1,573,346) (1,394,241) 2,818,367 2,742,282
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– 14 – An ageing analysis of the trade receivable as at the end of the reporting period, based on the invoice date and net of loss allowance, is as follows: As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 year 955,347 1,012,294 1 to 2 years 538,669 492,639 2 to 3 years 504,403 606,560 Over 3 years 819,948 630,789 2,818,367 2,742,282 11. TRADE PAYABLES As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Related parties 18,583 21,114 Third parties 759,112 663,620 777,695 684,734 An ageing analysis of the trade payables as at the end of the reporting period, based on the invoice date, is as follows: As at 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 year 600,929 549,765 1 to 2 years 123,086 89,380 2 to 3 years 32,318 25,843 Over 3 years 21,362 19,746 777,695 684,734 12. DIVIDENDS The Board has resolved not to declare any interim dividend for the six months ended 30 June 2026 (for the six months ended 30 June 2025: Nil).
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– 15 – CHAIRMAN’S STATEMENT Dear Shareholders, Thanks for your continued support for the Group’s development. I am pleased to present the interim results of the Group for the six months ended 30 June 2026. In the first half of 2026, the pace of global economic recovery diverged, while geopolitical developments and fluctuations in international trade continued to create multiple external uncertainties, resulting in a generally cautious market. China’s economy recovered steadily and remained generally stable. However, the domestic market still requires sustained stimulus, and market participants across sectors have been proactively adjusting and building momentum. The traditional growth model of the property management services industry, which relied on property developers’ project deliveries to drive scale expansion, has now evolved, with the focus of industry competition returning to the fundamental value of service. As the public’s demand for high-quality living and urban services continues to rise, alongside the ongoing implementation of urban renewal and the standardised upgrading of public supporting services, the scope of value delivered by property management services continues to expand, presenting clear and considerable long-term growth potential for the industry. Against the backdrop of industry transformation, the Group has leveraged its all-format service system to build development resilience, while steadfastly adhering to the operating principles of placing customer needs as the core and service quality as the foundation. Affected by factors including the profound adjustment of the upstream real estate sector and intensifying market competition, the Group’s operating performance came under period-specific pressure. For the six months ended 30 June 2026, the Group recorded revenue of approximately RMB1,570.2 million and a net loss of approximately RMB155.0 million. In response to short-term operational pressures, the Group has continued to enhance the quality and efficiency of internal management, coordinate the deployment of various resources, and comprehensively enhance its refined operational capabilities across all projects. At the same time, the Group has steadily cultivated independent and sustainable drivers of long-term growth, laying a stronger foundation for steady and high-quality development. I. Adhering to a market-oriented development strategy and building regional competitive advantages As the industry enters an era of competition for existing market share, market- oriented expansion and deeper penetration of core city clusters have become two key paths for the Group to achieve independent and sustainable development. Third- party market-oriented business is an important pillar supporting the Group in broadening its growth channels and establishing a distinct growth trajectory. The Group has actively participated in tenders for a diverse range of market-oriented projects and continued to expand the scale of its third-party business through its
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– 16 – well-established integrated service solutions. For the six months ended 30 June 2026, revenue from third-party accounted for 92.0% of the Group’s total revenue, further demonstrating the continued progress of the Group’s independent market development capabilities. In terms of regional deployment, leveraging its long- established local operational resources and market reputation, the two core strategic regions, the Greater Bay Area and the Yangtze River Delta, generated approximately 63.8% of the Group’s revenue in aggregate, with the regional cluster effect continuing to materialise. Market-oriented expansion and deeper penetration of key regions reinforce and complement each other, continuously refining the Group’s overall business footprint and laying a solid foundation for steady operations and growth over the medium to long term. II. Unleashing the potential of diversified business formats and enhancing comprehensive operational capabilities Building on its long-term strategy of providing integrated operational services across the full spectrum of urban spaces, the Group has established tailored and specialised operating systems for each business segment, continuously strengthening differentiated core service capabilities. The commercial segment focuses on full life- cycle asset operations and management, iterating operating solutions around diverse consumption scenarios to invigorate customer traffic in commercial districts and support the steady operation of merchants. The public property segment has established a standardised integrated facilities operation and maintenance system, providing refined and intensive logistics support services across diverse scenarios, including government agencies, educational institutions, medical institutions and industrial parks. The Group promotes the sharing of operational experience and service resources among its various business segments, leveraging its integrated comprehensive service capabilities across different scenarios to capture incremental market opportunities and diversify its revenue mix. Looking ahead, the Group will continue to unlock synergies across business segments, refine professional operating standards for each segment, consolidate its industry competitiveness through its advantages in integrated comprehensive services, and strengthen the foundation for the Group’s high-quality development. III. Strengthening internal organisational capabilities and building momentum for business development Against the backdrop of profound industry transformation, a lean and efficient organisational system provides an essential foundation for enterprises to advance steadily. The Group has taken coordinated measures across three dimensions: talent cultivation, organisational efficiency and cultural development, to comprehensively strengthen its operational resilience. In respect of talent development, the Group has established a systematic, tiered and categorised cultivation mechanism, providing targeted professional capability-building programmes based on business development needs and developing a multidisciplinary professional talent pool to provide solid
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– 17 – talent support for market-oriented expansion and all-format operations. At the organisational management level, the Group adheres to performance-oriented and efficiency-driven, continuously optimising internal operating processes and fully activating the organisation’s internal dynamism. Meanwhile, the Group regularly promotes its corporate culture, upholding the core values centred on service-first and pragmatic excellence, while improving employee incentive and care mechanisms to foster shared commitment among all employees and strengthen team cohesion and collective drive. Going forward, the Group will continue to implement the upgrading of lean management and establish a synergistic talent, organisation and culture system, supporting the Group’s long-term and stable development with solid organisational strength. IV. Future Outlook Looking ahead to the second half of 2026, the global macroeconomic environment is expected to remain complex and volatile, while the domestic economy will continue to undergo in-depth industrial adjustment. The property management services industry will continue to face multiple structural challenges, including homogeneous competition, continuously rising customer service expectations and escalating rigid costs. The Group will remain committed to prudent operations, uphold the long- term development philosophy, and steadfastly pursue high-quality and sustainable development. We thank all shareholders, partners and employees for their trust and support. The Group will continue to create value through professional services and looks forward to joining hands with all parties, leveraging collective strengths and embarking on a new journey together.
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– 18 – MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW The first half of 2026 coincided with the first year of the 15th Five-Year Plan. During the period, the “Implementation of Property Service Quality Improvement Initiative” was incorporated into a number of national-level plans, with policy requirements for service quality and professional capabilities in the industry becoming more stringent. Meanwhile, the property management industry has been rapidly shifting from a scale-oriented model towards one that prioritises quality and efficiency, while property owners continue to demand higher service quality and a closer alignment between service quality and value. Facing multiple challenges, including a moderate recovery in the macroeconomy, the continued contraction of the real estate industry chain and rising operating costs in the industry, the Group has adhered to a prudent operating approach, focused on refined management and the optimisation of its business structure, and prudently advanced its various business layouts. However, due to the combined effects of uncertainty in the external environment and strategic adjustments to certain businesses, the Group’s operating results came under period-specific pressure during the period. For the six months ended 30 June 2026, the Group recorded total revenue of approximately RMB1,570.2 million, representing a year-on-year decrease of 5.3%, and a net loss of approximately RMB155.0 million, representing a year-on-year decrease of approximately 44.0%. Core Business Resilience Under Pressure In the first half of 2026, demand in the residential property management market continued its weak momentum. The number of property sales offices served by the Group further declined compared with the corresponding period last year, while clients continued to slow the pace of their project launches, resulting in a corresponding decrease in demand for preliminary property services. During the reporting period, revenue from residential property management services decreased by 1.6% year-on-year to approximately RMB820.8 million. Nevertheless, the Group maintained high-quality service standards for its existing residential projects under management. Through continued efforts to enhance property owners’ satisfaction and its refined service capabilities, the revenue from residential property management services and the revenue from value-added services remained broadly stable year-on-year. Looking ahead, the Group will continue to regard its core business as the foundation of its development and maintain prudent operations while keeping risks under control.
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– 19 – Strategic Optimisation and Contraction In response to structural challenges, including persistent operating losses and price pressures at certain public properties, the Group has continuously improved its project risk assessment mechanism and carried out systematic reviews and optimisation of its existing project portfolio. During the period, the Group conducted in-depth risk assessments of certain public property projects and, taking into account their operating conditions, cash flow performance and long-term profitability prospects, proactively exited certain projects that continued to incur losses or showed no prospect of improved profitability, thereby enhancing the overall quality of its project portfolio. Revenue from non-residential property management and commercial operation services decreased by 9.1% year-on-year to approximately RMB749.4 million during the reporting period. Looking ahead to the second half of the year, the Group will continue to optimise the quality and structure of the projects, strictly implement project admission standards and periodic review mechanisms, and ensure the quality of profitability and the soundness of cash flows of its existing project portfolio. Impact of Impairment of Certain Assets (i) For the six months ended 30 June 2026, the Group recognised an impairment provision of approximately RMB194.2 million in respect of trade receivables. The provision was mainly attributable to the continuous downturn in China’s real estate industry and the significant changes in the market environment, including weakening demand and downward pressure on housing prices, which posed challenges on the overall business environment and resulted in slower recovery of trade receivables due to the Group. Accordingly, the Group prudently assessed the amount of impairment provisions for trade receivables and made reasonable accounting estimates; (ii) For the six months ended 30 June 2026, the Group recognised an impairment loss on goodwill of approximately RMB76.3 million. This was mainly attributable to intense market competition, which resulted in the non-renewal of certain contracts of subsidiaries acquired by the Group in prior periods. The expansion of the new customer bases of such subsidiaries fell short of expectations, which coupled with the increase in costs for service quality enhancement, led to a decline in the revenue and operating profit of such subsidiaries. Notwithstanding the reported decline in their operating profits, such subsidiaries still recorded net operating profits during the period.
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– 20 – Continuous Increase in Business Independence In the first half of 2026, against the backdrop of volatility in the macroeconomic environment and pressures arising from industry adjustment, the Group continued to deepen its market-oriented strategy, focusing on third-party market expansion to further enhance its business independence and risk-resilience. During the reporting period, the proportion of revenue derived from independent third parties further increased from 91.5% in the corresponding period of 2025 to 92.0%, reflecting the Group’s substantive progress in reducing its reliance on related-party business and expanding external markets. As the Group’s brand recognition and comprehensive service capabilities improved, the Group will remain focused on core city clusters and strengthen its differentiated competitive advantages to establish a sustainable and independent operating model. Structural Optimisation and Stronger Foundations In the first half of 2026, in response to the divergence in economic vitality and industrial structure across different regions, the Group remained committed to its strategy of deepening its presence in key regions. During the reporting period, revenue from the Greater Bay Area and the Yangtze River Delta, being the two major regions, accounted for 63.8% of the Group’s revenue, providing stable support for its revenue structure. The ongoing optimisation of the Group’s regional footprint not only helps to control operating costs and improve resource utilisation efficiency, but also lays a foundation for advancing centralised management and enhancing regional brand influence in the future.
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– 21 – The Group has consistently regarded customer satisfaction as its core objective. Through refined operations, enhanced full life-cycle and all-factor management, digital and intelligent transformation, and the development of talent mechanisms, the Group promotes the optimisation of its revenue structure and enhancement of service capabilities, driving long-term value creation. Looking ahead, the Group will remain focused on improving the quality of its operations. On the basis of safeguarding the operating quality and long-term health of its projects, the Group will accelerate the transition of its business structure from scale-driven to value-driven and strengthen the foundation for sustainable growth. BUSINESS MODEL The Group generates revenue primarily from two principal business segments: (i) residential property management services; and (ii) non-residential property management and commercial operational services. Residential Property Management Services The Group provides residential property management services and introduces a range of services meeting the needs of households and residents in the communities, including: • pre-sale management services such as cleaning, security and maintenance services for pre-sale display units and sales offices to property developers during their pre-sale activities. The Group charges a fixed service fee for such services; • property management services such as cleaning, security, gardening and repair and maintenance services to (i) property developers for the undelivered portion of the properties; and (ii) property owners, property owners’ associations or residents for properties sold and delivered. The Group charges property management fees for such services; and • community value-added services such as (i) home-living services — the provision of a wide range of services catered to the personalised needs of owners through the integration of industrial and ecological resources; (ii) property agency services — property agency services provided to property owners, residents and property developers; and (iii) common area value-added services — aiming to provide daily-living convenience to property owners and residents and enhance the owners’ sense of pleasant accommodation by utilising the community space. The Group typically charges a commission fee or a fixed fee depending on the nature of services rendered.
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– 22 – Non-residential Property Management and Commercial Operational Services The Group manages and operates a diversified portfolio of non-residential properties, provides property management and commercial operational services to commercial properties such as shopping malls, office buildings and industrial parks, and provides property management services to schools, hospitals, government authorities and other public properties. The Group’s services include: • pre-sale management services such as cleaning, security and maintenance services for pre-sale display units and sales offices to property developers. The Group charges a fixed service fee for such services; • property management services such as file management, cleaning, security, gardening and repair and maintenance services to property owners or tenants. The Group charges property management fees for such services; — property management services for commercial properties: the Group charges property management fees for property management services provided to commercial properties (including shopping malls and office buildings); — public property services and urban services: the Group charges corresponding management fees for property management services provided to public properties (including schools, hospitals, government authorities, industrial parks and transportation hubs) and for urban cleaning services provided to urban spaces (including urban roads, rivers and others); • commercial operational services such as preliminary planning and consultancy services, tenancy sourcing services, tenancy management services and marketing and promotion services to property owners and property developers. The Group typically charges (i) a commission-based fee with respect to the operation of shopping malls; (ii) a profit mark-up on top of the costs with respect to the operation of office buildings; and (iii) a fixed service fee on a per square metre basis for its preliminary planning and consultancy services and tenancy sourcing services; and • other value-added services such as primarily common area value-added services. The Group typically charges a commission-based fee or a fixed fee depending on the nature of services rendered.
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– 23 – Breakdown of Total Revenue by Business Segments and Regions The table below sets forth the breakdown of the Group’s total revenue by business segments for the reporting periods indicated: Six months ended 30 June 2026 2025 RMB’000 % RMB’000 % Residential property management services Pre-sale management services 20,125 1.3 34,875 2.1 Property management services 726,898 46.3 725,983 43.8 Community value-added services 73,793 4.7 73,103 4.4 Sub-total 820,816 52.3 833,961 50.3 Non-residential property management and commercial operational services Pre-sale management services 2,429 0.1 5,093 0.3 Property management services 680,222 43.3 748,674 45.2 Commercial operational services 26,006 1.7 25,183 1.5 Other value-added services 40,715 2.6 45,226 2.7 Sub-total 749,372 47.7 824,176 49.7 Total 1,570,188 100.0 1,658,137 100.0
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– 24 – Residential Property Management Services For the six months ended 30 June 2026, the revenue of the Group’s residential property management services segment decreased by 1.6% year-on-year to approximately RMB820.8 million from approximately RMB834.0 million for the corresponding period in 2025. The decrease in revenue was mainly attributable to pressure in the real estate market, which resulted in a decrease in the number of sales offices of residential properties under the Group’s management and, consequently, a decrease in revenue from pre-sale management services in the residential segment. During the six months ended 30 June 2026, although the Group’s revenue from the residential property management services segment was affected by the pressure on the real estate market, the Group maintained its focus on the core regions and continued to deepen its presence in economically developed regions. The distribution of revenue from the residential segment across four regions remained basically stable, among which the proportion of revenue from the Greater Bay Area and the Yangtze River Delta region reached 58.9%. The table below sets forth a breakdown of the Group’s total revenue generated from residential property management services for the periods indicated by regions: Six months ended 30 June 2026 2025 RMB’000 % RMB’000 % Greater Bay Area 310,351 37.8 315,437 37.8 Yangtze River Delta (1) 172,823 21.1 158,170 19.0 Midwest China and Hainan (2) 301,252 36.7 318,157 38.1 Bohai Economic Rim (3) 36,390 4.4 42,197 5.1 Total 820,816 100.0 833,961 100.0 Notes: (1) Include Shanghai, Zhejiang Province, Anhui Province and Jiangsu Province. (2) Include Sichuan Province, Yunnan Province, Shaanxi Province, Hubei Province, Hunan Province, Jiangxi Province, Guangxi Zhuang Autonomous Region, Guizhou Province, Henan Province, Fujian Province, Hainan Province, Xinjiang Uygur Autonomous Region and Chongqing. (3) Include Beijing, Tianjin and Shandong Province
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– 25 – Non-residential Property Management and Commercial Operational Services For the six months ended 30 June 2026, the revenue of the Group’s non-residential property management and commercial operational services segment decreased by approximately 9.1% year-on-year to approximately RMB749.4 million from approximately RMB824.2 million for the corresponding period in 2025. Such decrease was primarily due to the continuous strategic contraction of the public property services business, combined with the failure to renew certain expiring property management service agreements as a result of intense market competition during the six months ended 30 June 2026. The table below sets forth a breakdown of the Group’s total revenue generated from non-residential property management and commercial operational services for the periods indicated by regions: Six months ended 30 June 2026 2025 RMB’000 % RMB’000 % Greater Bay Area 237,001 31.6 308,170 37.4 Yangtze River Delta (1) 281,163 37.5 270,102 32.8 Midwest China and Hainan (2) 93,957 12.5 111,412 13.5 Bohai Economic Rim (3) 137,251 18.4 134,492 16.3 Total 749,372 100.0 824,176 100.0 Notes: (1) Include Shanghai, Zhejiang Province, Anhui Province and Jiangsu Province. (2) Include Sichuan Province, Chongqing, Hubei Province, Hunan Province, Henan Province, Inner Mongolia Autonomous Region, Shaanxi Province, Jiangxi Province, Yunnan Province, Guizhou Province, Guangxi Zhuang Autonomous Region and Hainan Province. (3) Include Beijing, Tianjin, Shandong Province and Liaoning Province.
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– 26 – FINANCIAL REVIEW Revenue The Group derived its revenue from two business segments, namely the residential property management service segment and non-residential property management and commercial operational service segment. The table below sets forth the breakdown of revenue of the Group by business segments for the periods indicated: Six months ended 30 June 2026 2025 RMB’000 % RMB’000 % Residential property management services 820,816 52.3 833,961 50.3 Non-residential property management and commercial operational services 749,372 47.7 824,176 49.7 Total 1,570,188 100.0 1,658,137 100.0 Residential Property Management Services The following table sets forth a breakdown of the Group’s revenue from residential property management services by service line for the periods indicated: Six months ended 30 June 2026 2025 RMB’000 % RMB’000 % Pre-sale management services 20,125 2.5 34,875 4.2 Property management services 726,898 88.5 725,983 87.0 Community value-added services 73,793 9.0 73,103 8.8 Total 820,816 100.0 833,961 100.0
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– 27 – Pre-sale Management Services Revenue generated from pre-sale management services under the Group’s residential property management service segment decreased from approximately RMB34.9 million for the six months ended 30 June 2025 to approximately RMB20.1 million for the six months ended 30 June 2026. Such decrease was primarily due to the decrease in the number of sales offices of residential properties under the Group’s management during the six months ended 30 June 2026. Property Management Services Revenue generated from property management services under the Group’s residential property management service segment slightly increased from approximately RMB726.0 million for the six months ended 30 June 2025 to approximately RMB726.9 million for the six months ended 30 June 2026. Such increase was primarily due to the combined effect of an increase in the Group’s gross floor area under management for residential properties and a reduction in unit prices of property management fee for certain existing projects under management. Community Value-added Services Revenue generated from community value-added services under the Group’s residential property management service segment slightly increased from approximately RMB73.1 million for the six months ended 30 June 2025 to approximately RMB73.8 million for the six months ended 30 June 2026. Non-residential Property Management and Commercial Operational Services The following table sets forth a breakdown of the Group’s revenue from non-residential property management and commercial operational services by service line for the periods indicated: Six months ended 30 June 2026 2025 RMB’000 % RMB’000 % Pre-sale management services 2,429 0.3 5,093 0.6 Property management services 680,222 90.8 748,674 90.8 Commercial operational services 26,006 3.5 25,183 3.1 Other value-added services 40,715 5.4 45,226 5.5 Total 749,372 100.0 824,176 100.0
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– 28 – Pre-sale Management Services Revenue generated from pre-sale management services under the Group’s non-residential property management and commercial operational service segment decreased from approximately RMB5.1 million for the six months ended 30 June 2025 to approximately RMB2.4 million for the six months ended 30 June 2026. Such decrease was primarily due to the decrease in the number of sales offices of non-residential properties under the Group’s management during the six months ended 30 June 2026. Property Management Services Revenue generated from property management services under the Group’s non-residential property management and commercial operational service segment decreased from approximately RMB748.7 million for the six months ended 30 June 2025 to approximately RMB680.2 million for the six months ended 30 June 2026. Such decrease was primarily due to the continuous strategic contraction of the public property services business, combined with the failure to renew certain expiring property management service agreements as a result of intense market competition during the six months ended 30 June 2026. Commercial Operational Services Revenue generated from commercial operational services under the Group’s non-residential property management and commercial operational service segment slightly increased from approximately RMB25.2 million for the six months ended 30 June 2025 to approximately RMB26.0 million for the six months ended 30 June 2026. Other Value-added Services Revenue generated from other value-added services under the Group’s non-residential property management and commercial operational service segment decreased from approximately RMB45.2 million for the six months ended 30 June 2025 to approximately RMB40.7 million for the six months ended 30 June 2026. Such decrease was primarily due to the weak macroeconomic environment, leading to a decrease in customers’ demand for value-added services.
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– 29 – Cost of Sales The Group’s cost of sales represents costs and expenses directly attributable to the provision of its services, which comprises (i) labour costs; (ii) subcontracting costs; (iii) utilities costs; (iv) office expenses; (v) cleaning expenses; (vi) rent and management fees for staff dormitory and car parks; (vii) security expenses; and (viii) others. For the six months ended 30 June 2026, the total cost of sales of the Group was approximately RMB1,218.5 million, which decreased by approximately RMB20.8 million or 1.7% as compared to approximately RMB1,239.3 million for the corresponding period in 2025. The cost reduction was smaller than the revenue decline, which was mainly because the Group reduced unit prices of property management fee for certain projects under management and increased cost to further improve service quality during the six months ended 30 June 2026, in order to maintain the Group’s market competitiveness. Gross Profit and Gross Profit Margin The gross profit of the Group decreased by approximately RMB67.1 million or 16.0% to approximately RMB351.7 million for the six months ended 30 June 2026 from approximately RMB418.8 million for the six months ended 30 June 2025. The Group reported gross profit margin of approximately 22.4% for the six months ended 30 June 2026 (for the six months ended 30 June 2025: approximately 25.3%). Other Income and Gains The other income and gains of the Group decreased by approximately RMB1.6 million or 21.3% to approximately RMB5.9 million for the six months ended 30 June 2026 from approximately RMB7.5 million for the six months ended 30 June 2025, and mainly comprised government grants, late penalty income and tax incentives on value-added tax of approximately RMB1.8 million, RMB1.4 million and RMB1.4 million, respectively. Administrative Expenses Administrative expenses mainly consist of (i) salaries and allowances for the Group’s administrative and management personnel; (ii) depreciation and amortisation costs; and (iii) office expenses. For the six months ended 30 June 2026, the administrative expenses of the Group were approximately RMB193.0 million, which decreased by approximately RMB13.7 million or 6.6% as compared to approximately RMB206.7 million for the corresponding period in 2025. Such decrease was primarily due to certain other intangible assets arising from acquisition of subsidiaries in previous year had been fully amortised or impaired in 2025. In addition, the decrease in administrative expenses also reflected the Group’s continuous improvement in management efficiency.
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– 30 – Other Expenses, Net For the six months ended 30 June 2026, the other expenses of the Group was approximately RMB287.1 million, representing a decrease of 22.5% from approximately RMB370.3 million for the six months ended 30 June 2025 and mainly comprised impairment losses on trade receivables of approximately RMB194.2 million and impairment losses on goodwill of approximately RMB76.3 million. After taking into consideration of the credit risk and market environment, the Group recorded appropriate impairment provisions for trade receivables in view of the slow pace of recovery of trade receivables for the six months ended 30 June 2026. In addition, the impairment loss on goodwill recognised by the Group primarily stemmed from intense market competition, resulting in the non-renewal of certain contracts by subsidiaries acquired in previous years and the expansion of new customer base falling short of expectations. The decrease in other expenses was primarily due to the decreases in impairment losses on trade receivables, goodwill and property, plant and equipment of the Group of approximately RMB43.0 million, RMB8.1 million and RMB28.8 million, respectively. Income Tax Expenses For the six months ended 30 June 2026, the income tax expenses of the Group were approximately RMB23.1 million, which decreased by approximately RMB89.3 million or 79.4% as compared to approximately RMB112.4 million for the corresponding period in 2025. Such decrease was primarily due to the reduction in the derecognition of previously recognised deferred tax assets for certain subsidiaries, from approximately RMB94.4 million for the six months ended 30 June 2025 to approximately RMB1.2 million for the six months ended 30 June 2026. Based on the current challenging market environment and the existing operational arrangements, the Group expects that such subsidiaries will not have sufficient taxable profits in future periods to utilise the benefits of the deductible temporary differences. Net Loss As a result of the foregoing, the Group recorded a net loss of approximately RMB155.0 million for the six months ended 30 June 2026 (for the six months ended 30 June 2025: approximately RMB276.6 million).
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– 31 – FINANCIAL POSITION AND CAPITAL STRUCTURE Total Assets, Total Liabilities and Current Ratio As at 30 June 2026, the total assets of the Group was approximately RMB5,800.9 million (as at 31 December 2025: approximately RMB5,976.0 million), and the total liabilities was approximately RMB3,199.9 million (as at 31 December 2025: approximately RMB3,182.6 million). As at 30 June 2026, the current ratio of the Group was 1.63 (as at 31 December 2025: 1.67). Cash and Cash Equivalents As at 30 June 2026, the Group’s cash and cash equivalents amounted to approximately RMB992.2 million, representing a decrease of approximately 18.6% as compared with approximately RMB1,219.2 million as at 31 December 2025. All of the Group’s cash and cash equivalents were denominated in RMB except for approximately RMB0.1 million which were denominated in Hong Kong dollars (“ HK$”) and United States dollars. Borrowings and Charges on the Group’s Assets As at 30 June 2026, the Group’s total borrowings were approximately RMB373.7 million. Among which, approximately RMB86.0 million will be repayable within 1 year and approximately RMB287.7 million will be repayable between 2 and 3 years. The Group’s bank and other borrowings were secured by trade receivables, other receivables and property, plant and equipment of the Group with total carrying value of approximately RMB16.6 million, and equity interest of a subsidiary of the Group. The carrying amounts of all the Group’s bank and other borrowings were denominated in RMB. All of the Group’s bank and other borrowings were charged at floating interest rates except for loan balance of approximately RMB6.0 million which were charged at fixed interest rates of 6.82% per annum as at 30 June 2026. Trade Receivables The Group’s trade receivables mainly represent receivables from residential property management services and non-residential property management and commercial operational services. The Group’s trade receivables as at 30 June 2026 amounted to approximately RMB2,818.4 million, representing an increase of approximately RMB76.1 million or 2.8% as compared to approximately RMB2,742.3 million as at 31 December 2025. Due to the lack of improvement in the external environment during the six months ended 30 June 2026, the pace of recovery of trade receivables continued to be slow. At the same time, the Group had made appropriate impairment provisions during the six months ended 30 June 2026.
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– 32 – Trade Payables The Group’s trade payables as at 30 June 2026 amounted to approximately RMB777.7 million, representing an increase of approximately RMB93.0 million or 13.6% as compared to approximately RMB684.7 million as at 31 December 2025. In order to improve the efficiency of working capital, the Group actively negotiated with certain third-party suppliers to extend the term of payment, resulting in an increase in trade payables as at 30 June 2026. Gearing Ratio Gearing ratio is calculated by the net debt (total debt net of cash and cash equivalents and restricted cash) divided by total equity. As the Group was in a net cash position as at 30 June 2026 and 31 December 2025 , the gearing ratio was not applicable to the Group. Contingent Liabilities As at 30 June 2026 and 31 December 2025, the Group did not have any material contingent liabilities. Foreign Exchange Risk The Group mainly operates in the PRC and most of its operations are denominated in RMB. The Group will closely monitor the fluctuations of the RMB exchange rate and give prudent consideration as to entering into currency swap arrangement as and when appropriate for hedging corresponding risks. During the first half of 2026, the Group had not engaged in hedging activities for managing foreign exchange rate risk. SIGNIFICANT INVESTMENTS HELD, MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES, AND FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS During the six months ended 30 June 2026, there were no significant investments held, no material acquisitions or disposals of subsidiaries, associates and joint ventures by the Group, nor was there any plan authorised by the Board for other material investments or additions of capital assets as at the date of this announcement. USE OF NET PROCEEDS FROM THE LISTING The shares of the Company were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”) on 30 October 2020 by way of Global Offering (as defined in the prospectus of the Company dated 19 October 2020, the “Prospectus ”), raising the total net proceeds (after deducting professional fees, underwriting commissions and other related listing expenses) of approximately
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– 33 – HK$2,913.1 million (the “ Net Proceeds ”). For details of the original proposed allocation of the Net Proceeds, please refer to the section headed “Future Plans and Use of Proceeds — Use of Proceeds” in the Prospectus. On 29 June 2021, the Group resolved to revise the allocation of the Net Proceeds. Details of the re-allocation are set out in the Company’s announcement dated 29 June 2021. On 10 January 2022, the Board resolved to further adjust the allocation proportion of the Net Proceeds as set out in the announcement of the Company dated 10 January 2022 (the “ Announcement ”). An analysis of the utilisation of the Net Proceeds during the six months ended 30 June 2026 is as follows: Use of the Net Proceeds as set out in the Announcement Revised allocation as stated in the Announcement Unutilised or unplanned Net Proceeds as at 1 January 2026 Utilised or planned Net Proceeds during the six months ended 30 June 2026 Unutilised or unplanned Net Proceeds as at 30 June 2026 HK$ million HK$ million HK$ million HK$ million To pursue strategic acquisitions and investment opportunities 2,703.4 — — — To upgrade the intelligent service systems: — to purchase and upgrade hardware, establish smart terminal equipment and Internet of Things Platform 84.2 69.0 1.5 67.5 — to develop and upgrade the intelligence service systems 36.4 — — — Diversification into value-added services: — to cooperate with companies that provide complementary community products and services 36.4 36.4 — 36.4 For general corporate purposes and working capital 52.7 — — — Total 2,913.1 105.4 1.5 103.9 Due to the current rapid iteration of hardware and smart terminal technologies and the weak economic recovery leading to lower-than-expected demand for value-added services, the Company has decided to further defer the relevant plans in order to utilise the Net Proceeds prudently. As of the date of this announcement, the Company expects that the unutilised or unplanned Net Proceeds will be fully utilised on or before 31 December 2027. However, the actual timing for utilising the Net Proceeds is subject to change.
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– 34 – EMPLOYEES AND REMUNERATION POLICY As at 30 June 2026, the Group had 10,409 employees (as at 31 December 2025: 12,244 employees). Compensation for employees of the Group is made with reference to the market as well as individual performance and contributions, and extensive use of bonuses to link performance with reward is adopted. For the six months ended 30 June 2026, employees benefit expense amounted to approximately RMB541.0 million (30 June 2025: approximately RMB613.1 million). The Group reviews the remuneration policies and packages on a regular basis and make necessary adjustments that accommodate the pay levels in the industry. In addition to basic salaries, the Group also provides comprehensive benefit packages and career development opportunities, including performance-based bonus payments, share options, share awards, retirement schemes, medical benefits, and both internal and external training appropriate to individual needs. INTERIM DIVIDEND The Board has resolved not to declare any interim dividend for the six months ended 30 June 2026 (for the six months ended 30 June 2025: Nil). CORPORATE GOVERNANCE The Group is committed to maintaining high standards of corporate governance to safeguard the interests of the shareholders of the Company (the “ Shareholders ”) and to enhance corporate value and accountability. During the six months ended 30 June 2026, the Company has applied the principles of good corporate governance and complied with the code provisions as set out in the Corporate Governance Code contained in Part 2 to Appendix C1 (the “ CG Code ”) to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”), save for the deviations for reasons set out below. The Company will continue to review and monitor its corporate governance practices to ensure the compliance with the CG Code. Code provision F.1.1 of Part 2 of the CG Code stipulates that independent non-executive directors and other non-executive directors should attend general meetings and code provision F.1.3 of the CG Code stipulates that the chairman of the Board (the “Chairman ”) should attend the annual general meeting. Mr. KONG Jianmin, a non-executive Director and the Chairman, was unable to attend the annual general meeting of the Company convened and held on 3 June 2026 due to his other business engagements. In the absence of Mr. KONG Jianmin from the annual general meeting, Mr. KONG Jiannan, an executive Director, acted as the chairman of the annual general meeting to ensure an effective communication with the Shareholders. Mr. KONG Jianmin has also followed up with Mr. KONG Jiannan for any opinions or concerns of the Shareholders expressed at the annual general meeting afterwards.
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– 35 – MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules (the “ Model Code ”) as its own code of conduct regarding Directors’ securities transactions. In response to specific enquiry made by the Company, all Directors have confirmed that they have complied with the Model Code during the six months ended 30 June 2026. In addition, the Company is not aware of any non-compliance of the Model Code by senior management of the Group during the six months ended 30 June 2026. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES Neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares, as defined under the Listing Rules) during the six months ended 30 June 2026. As at 30 June 2026, the Company did not hold any treasury shares. AUDIT COMMITTEE The Audit Committee comprises three members who are independent non-executive Directors. The Audit Committee has reviewed the Interim Financial Information. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD There were no significant events of the Group subsequent to 30 June 2026 and up to the date of this announcement.
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– 36 – INTERIM REPORT The 2026 interim report of the Company containing all the financial and other related information of the Group required by the Listing Rules will be published on the Company’s website (www.kwgliving.com) and the HKEXnews website (www.hkexnews.hk), and printed copies will be sent to the Shareholders (if requested) before the end of September 2026. (2) CHANGE OF PRINCIPAL PLACE OF BUSINESS IN HONG KONG The board of directors of the Company announces that the principal place of business of the Company in Hong Kong will be changed to Room 3505, 35/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong with effect from 28 August 2026. The Company’s telephone number and facsimile number will remain unchanged. By order of the Board KWG Living Group Holdings Limited KONG Jianmin Chairman Hong Kong, 28 August 2026 As at the date of this announcement, the Board comprises Mr. KONG Jianmin (Chairman) as Non-executive Director; Mr. KONG Jiannan and Mr. CHEN Wende as Executive Directors; and Ms. LIU Xiaolan, Mr. FUNG Che Wai, Anthony and Ms. NG Yi Kum as Independent Non-executive Directors.