Earnings release
Page 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 . THE HONGKONG AND SHANGHAI HOTELS , LIMITED 香港 上海 大 酒店 有限公司 ( Incorporated in Hong Kong with limited liability ) ( Stock Code : 45 ) website : www.hshgroup.com THE HONGKONG ANDA HOTELS , LIMITED 2026 Interim Results FINANCIAL SUMMARY HK $ m Revenue from operations ^ Revenue Operating EBITDA ^ EBITDA Profit / ( loss ) attributable to shareholders Underlying loss attributable to shareholders For the six months ended 30 June For the six months ended 30 June 2026 2025 change 3,534 3,281 8 % 3,929 3,281 20 % 772 643 20 % 770 643 20 % 23 ( 289 ) n / a ( 17 ) ( 216 ) 92 % As at As at 31 30 June December 2026 2025 36,309 36,110 1 % 21.78 21.66 1 % 26.09 25.98 0 % 22 % 23 % ( 1pp ) • Net assets attributable to shareholders Net assets per share ( HK $ ) Adjusted net assets per share ( HK $ ) Net external debt to total assets ^ Excluding the results from the sale of The Peninsula London Residences . Disciplined strategic execution : We made clear progress in delivering our " Vision 2035 : Perform and Transform ” agenda : strengthening operating momentum , hotel performance and brand recognition today , while advancing the guest experience , asset renewal and capital discipline that will shape the future . Strong RevPAR growth in key regions , external recognitions including La Liste , and the upcoming renovation projects at The Peninsula Hong Kong and The Peninsula Tokyo reflect the current performance of the business , the strength of the brand and our commitment to long - term relevance . Return to profitability : The group returned to profitability in 1H 2026 , with profit attributable to shareholders of HK $ 23 million , compared with a HK $ 289 million loss in 1H 2025. Consolidated revenue and consolidated EBITDA both rose by 20 % , driven principally by stronger hotel performance in Greater China and the US , the continued ramp - up of our newer European properties , together with disciplined pricing and careful cost control . Our Commercial Properties and Peak Tram , Retail and Others divisions continued to provide balance and resilience to the group . Optimistic for the future : We enter the second half of the year with improved momentum and a clearer strategic agenda , while remaining agile amid geopolitical uncertainty , currency volatility and uneven luxury demand . As we continue to invest selectively in our assets , people and guest experience , we remain committed to building on The Peninsula's reputation as a purveyor of timeless luxury - preserving the magnificent heritage of our past while helping define the future of luxury for generations to come . -1-
Page 2
-2- FINANCIAL HIGHLIGHTS For the six months ended 30 June 2026 For the six months ended 30 June 2025 2026 vs 2025 PROFIT OR LOSS HIGHLIGHTS (HK$m) Revenue from operations^ 3,534 3,281 8% Revenue 3,929 3,281 20% Operating EBITDA^ 772 643 20% EBITDA 770 643 20% Profit/(loss) attributable to shareholders 23 (289) n/a Profit/(loss) per share (HK$) 0.01 (0.17) n/a Underlying loss attributable to shareholders* (17) (216) 92% Cash interest cover (times) ** 2.8x 1.9x 49% Weighted average interest rate 3.7% 4.3% (0.6pp) As at 30 June 2026 As at 31 December 2025 2026 vs 2025 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (HK$m) Total assets 54,675 55,051 (1%) Net assets attributable to shareholders 36,309 36,110 1% Adjusted net assets attributable to shareholders # 43,492 43,307 0% Net assets per share (HK$) 21.78 21.66 1% Adjusted net assets per share (HK$)# 26.09 25.98 0% Net external borrowings 11,946 12,693 (6%) Funds from operations to net external debt ## 13% 13% 0pp Net external debt to equity attributable to shareholders 33% 35% (2pp) Net external debt to total assets 22% 23% (1pp) For the six months ended 30 June 2026 For the six months ended 30 June 2025 2026 vs 2025 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (HK$m) Net cash generated from operating activities 1,043 610 71% Capital expenditure on operating assets (181) (496) 64% Capital injection into a joint venture (49) (79) 38% SHARE INFORMATION (HK$) Highest share price 7.00 6.20 Lowest share price 5.19 5.18 Period end closing share price 5.26 5.50 ^ Excluding the results from the sale of The Peninsula London Residences. * Underlying loss is calculated by excluding the post-tax effects of unrealised property revaluation movements and impairment provisions, if any, and other non-recurring expenses. ** Cash interest cover is calculated based on EBITDA less lease payments divided by net interest on bank loans paid. # Adjusted net assets attributable to shareholders and adjusted net assets per share are calculated by adjusting the group ’s hotels and golf course to fair market value based on the valuation conducted by independent property valuers, net of tax. ## Being annualised EBITDA as a percentage of net external debt. pp Denotes percentage points.
Page 3
-3- CEO REVIEW The Hongkong and Shanghai Hotels, Limited delivered an improved first-half performance in 2026, returning to profitability and recording stronger revenue, EBITDA and key operating metrics. This represented a meaningful recovery in earnings and operating momentum from the same period last year, and reflects the resilience of global luxury travel, stronger demand in key hotel markets, the enduring strength of The Peninsula brand and the dedication of our colleagues around the world. Profit attributable to shareholders was HK$23 million for the first half, compared with a loss of HK$289 million a year earlier. Combined revenue increased by 8% year-on-year to HK$3,951 million before contribution from The Peninsula London Residences, while combined EBITDA rose by 22% to HK$853 million. Including The Peninsula London Residences, revenue was HK$4,346 million, reflecting the sale of two residential apartments during the period. The improvement was led by the Hotels division, particularly in Greater China and the United States, supported by stable earnings from Commercial Properties. These results should be viewed in the context of the strategic review completed in 2025 and the Vision 2035 framework now guiding the business. Our near-term focus is to execute the “Perform and Transform ” strategic agenda, strengthening the fundamentals of our existing hotel portfolio across brand, service and revenue management, while embracing operational excellence in all our properties. We are preparing the group for its next phase through disciplined capital allocation, selective reinvestment in our core assets and partnership-led opportunities. The dedication of our teams is also reflected in the recognition our hotels continue to receive. The Peninsula Shanghai and The Peninsula Chicago were ranked joint number one in La Liste ’s World’s Best Hotels 2026, while The Peninsula Paris was named among La Liste ’s Top 100 Hotels. These accolades are a tribute to the passion, care and commitment our colleagues bring to every guest experience. The macro travel environment remains uneven, but the luxury sector continues to show resilience, particularly where demand is driven by highly personalised, experience-led travel. The World Travel and Tourism Council expects global travel and tourism to grow faster than the wider economy in 2026 and over the next decade, while recent studies by Bain, McKinsey and Deloitte have highlighted a structural shift towards luxury experiences, personalisation, wellness, cultural connection and destination-led stays. This external context is consistent with what we are seeing in our own business: demand is strongest where luxury is experiential, personal and deeply connected to the destination. This evolving luxury travel environment aligns closely with The Peninsula ’s long-standing strengths. Across the group, we are continuing to develop distinctive experiences that bring together destination, culture and service, including Peninsula Academy, Peninsula Time, Peninsula Signature Events, bespoke motoring journeys, the Pen 1 yacht experience in Istanbul and carefully choreographed arrival experiences across our hotels. These initiatives deepen guest engagement, strengthen emotional connection to our brand and support our strategy to place memorable, highly personalised experiences at the heart of our luxury positioning. Against this backdrop, the following section sets out the performance of our three divisions, with stronger momentum in Hotels, stable earnings from Commercial Properties and a continued focus on enhancing The Peak and our related operating businesses.
Page 4
-4- BUSINESS PERFORMANCE Our group comprises three key divisions – Hotels, Commercial Properties and Peak Tram, Retail and Others. 1. Hotels Division The Peninsula Hotels RevPAR (HK$) 1H 2026 1H 2025 2026 vs 2025 Greater China 3,006 2,330 29% Europe 6,756 6,101 11% USA 5,288 4,573 16% Asia (excluding Greater China) 2,712 2,695 1% The Hotels division was the principal driver of the group ’s first-half improvement, with all key indicators showing significant progress compared with the same period last year. Hotels revenue increased by 10% year-on-year to HK$3,116 million, while hotels EBITDA rose by 24% to HK$579 million. This performance reflected stronger occupancy, higher average rates, improved RevPAR and careful cost management, with particularly encouraging contributions from North Asia and the United States, together with the growing impact of our newer European hotels. Greater China Greater China delivered a strong first-half performance, with average RevPAR increasing by 29% compared with the same period last year. The improvement reflected higher occupancy, stronger average rates, increased overseas visitors and disciplined cost control across the region. The Peninsula Hong Kong continued to demonstrate the value of its heritage, location and loyal customer base in a competitive market, with The Peninsula Arcade benefiting from recovering luxury footfall and high-quality tenant demand, while the Office Tower was managed carefully against a challenging leasing backdrop. The Peninsula Shanghai performed strongly, supported by individual travellers and a more international guest mix, and The Peninsula Beijing benefited from diplomatic delegations, MICE groups and renewed demand from international travel partners and corporate groups. Europe Europe made a stronger contribution to the group ’s first-half performance, with average RevPAR increasing by 11% compared with the same period last year. The improvement was supported by The Peninsula London ’s growing market presence, continued pricing discipline at The Peninsula Paris and encouraging progress at The Peninsula Istanbul, despite geopolitical uncertainty in the wider Middle East region affecting travel sentiment. The Peninsula London continued to establish itself among the city ’s leading luxury hotels, while the sale of two residences contributed to overall revenue for the period. The Peninsula Istanbul strengthened occupancy and market positioning, and The Peninsula Paris maintained its resilience in a competitive luxury market. Our focus remains on building sustainable long-term performance across the European portfolio.
Page 5
-5- USA The United States delivered a strong first-half performance, with average RevPAR increasing by 16% compared with the same period last year. The improvement was supported by resilient domestic demand, higher average rates and healthy group and leisure segments. The Peninsula New York continued to benefit from its recent renovation, The Peninsula Beverly Hills achieved strong rooms performance, and The Peninsula Chicago was supported by a solid group base as it marked its 25th anniversary in June 2026, a meaningful milestone for both the hotel and the city. Asia (excluding Greater China) Asia, excluding Greater China, recorded a modest improvement in the first half, with average RevPAR increasing by 1% compared with the same period last year. Performance was supported by stronger occupancy in The Peninsula Bangkok and The Peninsula Manila, while The Peninsula Tokyo maintained its leading market position and commanded strong rates, despite softer overall demand to Japan. The Peninsula Manila also marked its 50th anniversary during the period. 2. Commercial Properties 1H 2026 1H 2025 2026 vs 2025 Occupancy (%) Average monthly rent per square foot (HK$) Occupancy (%) Average monthly rent per square foot (HK$) Occupancy (pp) Average monthly rent per square foot (%) Residential 97 48 96 46 1pp 4% Arcades 93 63 86 63 7pp – Office 72 64 87 67 (15pp) (4%) The Commercial Properties division continued to provide a stable earnings base for the group, with improved margins during the period. Revenue for the first half was HK$486 million, up 7% year-on-year, while EBITDA increased by 13% to HK$262 million. Residential occupancy remained high at 97%, while the arcades benefited from improved luxury footfall and tenant demand. Office leasing in Hong Kong remained challenging, and we continued to manage this part of the portfolio carefully. The Repulse Bay performed well, underpinned by robust residential occupancy, a quality tenant base and continued initiatives to enhance its appeal as a distinctive lifestyle destination. Curated cultural and community-led activations supported footfall, tenant engagement and the long-term relevance of the property. The Peak Tower delivered year-on-year growth in the first half, supported by disciplined cost management and commercial initiatives, including a major collaboration with HSBC Life to create an Illumination and 3D mapping spectacle for visitors. This helped offset softer visitor traffic and adverse weather during the period, particularly in June. We continue to enhance The Peak as one of Hong Kong ’s most distinctive visitor destinations through targeted partnerships and experience-led initiatives.
Page 6
-6- 3. Peak Tram, Retail and Others Peak Tram, Retail and Others recorded modest year-on-year revenue growth of 2% to HK$349 million in the first half, supported by disciplined cost management and stronger contributions from selected operating businesses. Overall performance was also partly offset by softer trading conditions at The Peak and Peninsula Merchandising during the second quarter. The Peak Tram remains one of Hong Kong ’s most recognisable and enduring visitor experiences. While performance during the period was affected by softer visitor demand to the Peak due to adverse weather, we continued to build the appeal of The Peak Tram through targeted partnerships and destination-led activations designed to enhance the visitor experience. Peninsula Merchandising continued to operate in a cautious retail environment. During the period, we rationalised the retail store network in Japan and China, allowing the business to focus more clearly on product elevation, hotel destination retail, and opportunities that are more closely aligned with The Peninsula brand experience. We are also seeing encouraging wholesale opportunities for our confectionery items, which offer a more scalable way to extend selected Peninsula products while protecting brand quality and margins. The Quail, our hotel and golf club property in Carmel, California, delivered a steady performance in the first half of 2026, supported by its distinctive positioning as a wedding venue, loyal leisure demand and excellent reputation within the luxury motoring community. The business continued to benefit from its strong brand equity, high-quality partnerships and preparations for its signature August event, The Quail by The Peninsula, A Motorsports Gathering . Peninsula Clubs and Consultancy Services, which manages The Hong Kong Club, Hong Kong Bankers Club and The Refinery, also contributed positively through higher management fees. We continued to build our standalone food and beverage and lifestyle capabilities, including Primo Posto in Sheung Wan, Hong Kong. We are also developing other brand-led experiences and initiatives that are consistent with our strategy to extend the Peninsula experience beyond the traditional hotel stay and to create more reasons for guests and local communities to engage with us. 4. Our People Our colleagues remain at the heart of everything we do. The first quarter of the year began with a goal alignment exercise, through which comprehensive Key Performance Indicators (KPIs) were cascaded from the Executive Committee to global leaders and managers. This company-wide exercise aligns performance with defined strategic business goals across financial performance, guest experience and brand, operational efficiency, our people and Corporate Responsibility and Sustainability. In the same spirit, the company bonus plan for leaders and key management teams will align rewards with financial performance and the cascaded KPIs on our Balanced Scorecard. We also continued to strengthen governance and management discipline through the Board-level Finance and Investment Committee, which supports more rigorous oversight of capital allocation, investment priorities and long-term value creation.
Page 7
-7- The Workforce Inclusion and Diversity Policy was introduced in March 2026, formalising our commitment to maintaining a respectful, safe and inclusive work environment. The new policy details non-discriminatory principles across talent management processes, including recruitment, training, compensation, promotion, transfer and termination. In addition, our compliance training on sexual harassment in the workplace was refreshed and rolled out to colleagues globally in April to strengthen workplace safety. Demonstrating our continued commitment to innovation, our talent acquisition team was recognised by LinkedIn in March as the Best Talent Acquisition Team in the AI Hiring category, and as the AI Pioneer for the Hong Kong and Macau region. Our Learning and Talent Development team is also expanding the e-learning tools available to our colleagues through LinkedIn Learning and the curation of thematic training pathways for our global colleagues. As of 30 June 2026, there were 7,563 full-time employees in the group. 5. Sustainable Luxury We continued to advance our commitment to sustainable luxury by embedding sustainability more deeply into governance, operations and the guest experience. For me, this commitment is inseparable from the way we think about long-term stewardship. Luxury need not be wasteful, and the enduring value of our assets depends on disciplined investment, thoughtful design, responsible operations and respect for the communities in which we operate. The Board-level Sustainability Committee was established in May, strengthening governance and formalising oversight of sustainability and climate-related issues. It ensures alignment between sustainability objectives, key decision-making and capital allocation to support long-term value creation for the company. The Committee held its inaugural meeting in June and is due to convene at least twice a year. At the operational level, we launched an employee engagement campaign during Earth Day this year to encourage colleagues to discover and celebrate sustainability efforts at each property. This initiative aims to deepen understanding of our efforts and the impact created, and how these initiatives align with the company ’s values in supporting our guests, our employees and our communities. We continued to progress on our Sustainable Luxury goals. The Peninsula Chicago joined as the fifth property in the group to source 100% renewable electricity, contributing to the group ’s decarbonisation goals as one of our key efforts in mitigating climate change impact. In London, we delivered a BREEAM “Show & Tell ” event in partnership with the Energy & Environment Alliance, showcasing The Peninsula London as a case study for the opportunities of sustainability and luxury in hospitality real estate. The event reinforced our commitment to sustainable luxury at the outset from design and build to operations, to ensure our assets can yield long-term benefits and are able to endure and stand the test of time. More details of our achievements in the past year are available in our 2025 CRS Report.
Page 8
-8- 6. Outlook We enter the second half of 2026 with improved operating momentum, stronger EBITDA and a materially better earnings position than a year ago. The external environment remains mixed, with global travel continuing to grow and luxury hospitality benefiting from a structural shift towards experiences and hyper-personalisation. However, geopolitical uncertainty, currency volatility, cautious luxury retail spending and higher operating costs continue to require careful management. For Hotels, we expect demand to remain positive in the second half, supported by continued international travel recovery, resilient luxury demand and a growing preference for highly personalised experiences. We will remain focused on capturing high-quality demand, strengthening direct and relationship-led business, improving operating efficiency, and innovating particularly with our restaurant offering, while recognising that some markets may continue to be affected by geopolitical developments, currency movements and shorter booking windows. For Commercial Properties, we expect residential leasing to remain resilient and our retail offering to benefit from improving visitor flows and lifestyle demand as a result of our targeted marketing campaigns. Office leasing in Hong Kong is showing signs of improvement in core locations, but overall market conditions remain competitive. Our focus will therefore be on maintaining the quality of our tenant base, enhancing the appeal of our assets and managing occupancy and rental levels with discipline. For Peak Tram, Retail and Others, we expect second-half performance to be supported by disciplined cost management, new commercial partnerships and increased seasonal demand. At The Peak, our new campaigns and experiences will continue to strengthen its appeal as one of Hong Kong ’s leading visitor destinations. Peninsula Merchandising will focus on improving sales conversion and margin quality through hotel retail, selected wholesale channels and the important Mid-Autumn mooncake season. Across the group, our priorities for the remainder of the year are clear: to drive revenue, protect profitability through operational discipline, deepen guest engagement and invest selectively in the assets, people, technology and experiences that will strengthen The Peninsula brand over the long term. This is also a year of meaningful milestones. As HSH marks its 160th anniversary, The Peninsula Manila its 50th anniversary, The Peninsula Beverly Hills its 35th anniversary and The Peninsula Chicago its 25th anniversary, these occasions remind us of the depth of our heritage and the responsibility we have to keep evolving for the future. Looking further ahead, the Board has approved renovation projects for The Peninsula Hong Kong and The Peninsula Tokyo, with an estimated budget of HK$2.1 billion. These capital expenditure programmes reflect our confidence in the long-term value of our owned portfolio and our responsibility to ensure that our hotels remain relevant, distinctive and competitive for future generations. The first-half results give us confidence that the actions we are taking are moving the group in the right direction. I would like to thank the Board for its trust, our colleagues around the world for their dedication and care, our guests and partners for their loyalty, and our shareholders for their continued support as we build the next chapter of HSH. Benjamin Vuchot 5 August 2026
Page 9
-9- FINANCIAL REVIEW The Directors hereby announce the unaudited interim results of the group for the six months ended 30 June 2026. The Interim Financial Report has been reviewed by the company ’s Audit Committee. The Interim Financial Report is unaudited but has been reviewed by the company ’s auditor, KPMG, in accordance with the Hong Kong Standard on Review Engagements 2410, Review of interim financial information performed by the independent auditor of the entity , issued by the Hong Kong Institute of Certified Public Accountants (HKICPA), whose unmodified review report is included in the Interim Report. Basis of preparation The group ’s Interim Financial Report has been prepared in accordance with Hong Kong Accounting Standard 34, Interim financial reporting, issued by the Hong Kong Institute of Certified Public Accountants. Summary For the six months ended 30 June 2026, the group reported consolidated revenue of HK$3,929 million and consolidated EBITDA of HK$770 million. These results represent a 20% increase in both metrics compared to the same period last year, a reflection of the execution of our “Perform and Transform ” strategic vision. The group achieved growth across all business segments. Notably, the group ’s hotels division recorded robust performance across the portfolio, driven by properties in Greater China and the United States. Combined revenue for the division increased by 10% year-on-year, while EBITDA grew by 24%. The commercial properties division also delivered solid results, with The Repulse Bay continuing to benefit from improved occupancy, complemented by the stable performance of The Peak Tower. This resulted in a combined revenue increase of 7% and an EBITDA increase of 13% over the prior-year period, excluding contributions from The Peninsula London Residences, where two additional units were sold during the period. Overall, all core business segments achieved EBITDA margin expansion compared to the same period last year. This strong flow-through underscores our continued focus on cost discipline and operational efficiency. After accounting for depreciation, net financing charges, share of results of joint ventures and associates, and a gain on the revaluation of investment properties of HK$66 million (2025: loss of HK$61 million), the group recorded a profit attributable to shareholders of HK$23 million for the six months ended 30 June 2026. This represents a turnaround from a loss of HK$289 million for the same period last year. Excluding the impact from the revaluation of investment properties and non-recurring expenses, the group ’s underlying loss attributable to shareholders narrowed significantly to HK$17 million, compared to HK$216 million for the same period last year. As at 30 June 2026, the group ’s net assets attributable to shareholders amounted to HK$36 billion, and the group ’s net debt to total assets remained stable at 22%. The group ’s undrawn committed facilities amounted to HK$1.9 billion. Together with cash and bank balances of HK$951 million, total available funds amounted to HK$2.8 billion. The directors believe that the group has sufficient financial resources to meet operational working capital requirements and its capital commitments.
Page 10
-10- The group ’s underlying profit or loss attributable to shareholders Our operating results are mainly derived from the operation of luxury hotels, leasing and sale of residential apartments, leasing of office and retail properties, operation of the Peak Tram, and retail merchandising. We manage the group ’s operations with principal reference to their underlying operating cash flows and recurring earnings. However, to comply with the applicable accounting standards, we are required to include non-recurring and non-operating items, such as any changes in the fair value of investment properties, in our consolidated statement of profit or loss. To reflect the underlying operating performance of the group, we have provided a calculation of the underlying profit or loss attributable to shareholders. This is determined by excluding the post-tax effects of the revaluation movements of investment properties and other non-recurring items. The group ’s underlying loss attributable to shareholders for the six months ended 30 June 2026 amounted to HK$17 million, compared to an underlying loss of HK$216 million in the same period last year. Reconciliation of the group ’s profit/(loss) attributable to shareholders to underlying loss is set out below: For the six months ended 30 June HK$m 2026 2025 Profit/(loss) attributable to shareholders 23 (289) (Less)/add back: Revaluation (gain)/loss of investment properties* (45) 73 Non-recurring expenses** 5 – Underlying loss (17) (216) * Including the group ’s share of revaluation movement of The Peninsula Shanghai ’s retail arcade and residential apartments, and net of tax and non-controlling interests. ** Non-recurring expenses are unrelated to the group ’s operating hotels and properties and are non-recurring in nature. The amounts incurred in 2026 primarily relate to costs associated with the closure of the merchandising business at the Shanghai Xintiandi location.
Page 11
-11- Statement of profit or loss The following table summarises the key components of the group ’s profit/(loss) attributable to shareholders. This table should be read in conjunction with the commentary of this Financial Review. For the six months ended 30 June 2026 vs 2025HK$m 2026 2025 Revenue – operations 3,534 3,281 8% – residential sales 395 – n/a Total revenue 3,929 3,281 20% Operating costs – operations (2,762) (2,638) (5%) – residential sales (392) – n/a EBITDA before non-recurring expenses 775 643 21% Non-recurring expenses* (5) – n/a EBITDA 770 643 20% Depreciation and amortisation (352) (358) 2% Net financing charges (327) (362) 10% Share of results of joint ventures (29) (61) 52% Share of results of associates 4 (3) n/a Increase/(decrease) in fair value of investment properties 66 (61) n/a Taxation (110) (87) (26%) Profit/(loss) for the period 22 (289) n/a Non-controlling interests 1 – n/a Profit/(loss) attributable to shareholders 23 (289) n/a * Non-recurring expenses are unrelated to the group ’s operating hotels and properties and are non-recurring in nature. The amounts incurred in 2026 primarily relate to costs associated with the closure of the merchandising business at the Shanghai Xintiandi location. The decrease in net financing charges was driven by a reduction in the group ’s average borrowing rate. The increase in tax expense was primarily driven by improved profitability, as well as an increase in deferred tax charges attributable to temporary differences arising from unrealised revaluation gains on investment properties.
Page 12
-12- Statement of other comprehensive income The following table summarises the key components of the group ’s total comprehensive income attributable to shareholders. For the six months ended 30 June 2026 vs 2025HK$m 2026 2025 Profit/(loss) for the period 22 (289) n/a Other comprehensive income for the period, net of tax – Exchange differences on translation of the financial statements of overseas operations 173 457 (62%) – Net movement of cash flow hedges 3 (62) n/a 176 395 (55%) Total comprehensive income for the period 198 106 87% During the six months ended 30 June 2026, the group reported a net exchange gain of HK$173 million on the financial statements of the group ’s overseas operations, compared to a gain of HK$457 million in the same period last year. The group utilises interest rate swaps and cross currency interest rate swaps for cash flow hedge purposes. During the period, a net gain of HK$3 million was recognised on these instruments, primarily driven by an increase in fair value due to market interest rate expectations. Overall, the group reported a net other comprehensive income of HK$176 million for the six months ended 30 June 2026, compared to HK$395 million last year. After accounting for the profit of HK$22 million reported in the statement of profit or loss, the group ’s total comprehensive income for the six months ended 30 June 2026 amounted to HK$198 million, compared to HK$106 million in the same period last year. Revenue The group ’s hotel revenue is derived from our twelve luxury hotels under The Peninsula brand in Greater China, Europe, US and Asia (excluding Greater China), two of which are held by the group ’s associates and two by joint ventures. In addition to the hotels division, the group also operates a commercial properties division which is engaged in the development and sale or leasing of luxury residential apartments and leasing of office and retail buildings in prime city-centre locations in Greater China and Europe. The group ’s third business division is engaged in the operation of the Peak Tram, retail and other services, including operation of The Quail. For the six months ended 30 June 2026, the group ’s consolidated revenue amounted to HK$3,929 million. Combined revenue, which includes the group ’s effective share of revenue from associates and joint ventures, grew by 19% year-on-year to HK$4,346 million. These figures include HK$395 million generated from the sales of two additional units at The Peninsula London Residences during the period (2025: nil).
Page 13
-13- A breakdown of the group ’s total revenue, including its effective share of revenue of associates and joint ventures, by business segment and geographical segment is set out in the following tables. Revenue by business segment For the six months ended 30 June 2026 vs 2025HK$m 2026 2025 Group ’s subsidiaries Associates and joint ventures (effective share) Combined total Group’s subsidiaries Associates and joint ventures (effective share) Combined total Hotels 2,699 417 3,116 2,483 362 2,845 10% Commercial Properties (Leasing) 486 – 486 455 – 455 7% Peak Tram, Retail and Others 349 – 349 343 – 343 2% 3,534 417 3,951 3,281 362 3,643 8% Commercial Properties (Sale of Residences) 395 – 395 – – – n/a 3,929 417 4,346 3,281 362 3,643 19% Revenue by geographical segment For the six months ended 30 June 2026 vs 2025HK$m 2026 2025 Group ’s subsidiaries Associates and joint ventures (effective share) Combined total Group’s subsidiaries Associates and joint ventures (effective share) Combined total Greater China 1,518 133 1,651 1,350 106 1,456 13% Europe (Hotel and Leasing) 474 206 680 437 188 625 9% US 801 78 879 723 68 791 11% Asia (excluding Greater China) 741 – 741 771 – 771 (4%) 3,534 417 3,951 3,281 362 3,643 8% Europe (Sale of Residences) 395 – 395 – – – n/a 3,929 417 4,346 3,281 362 3,643 19% The hotels division remains the largest contributor to the group ’s combined revenue, achieving HK$3,116 million for the six months ended 30 June 2026, an increase of 10% compared to the same period last year. The division delivered strong results across the portfolio, led by our properties in Greater China and the United States, driven by improved occupancy and rates. In Asia (excluding Greater China), revenue normalised against an exceptionally high base set last year by The Peninsula Tokyo, resulting in a minor revenue drop for the region, although strong improvements from our other properties offset the impact.
Page 14
-14- Revenue from the Commercial Properties division increased by 94% to HK$881 million, driven primarily by the sales of two additional units at The Peninsula London Residences, generating revenue of HK$395 million. Excluding the revenue from sales of The Peninsula London Residences, the division ’s revenue increased by 7% to HK$486 million. This growth was mainly driven by The Repulse Bay Complex, which benefited from improved occupancy and continues to be the largest contributor to our leasing operations. Performance at The Peak Tower remained resilient despite adverse weather, driven mainly by sponsorship income. These increases were partially offset by a decrease in contribution from The Landmark Vietnam, as the group concluded its management of the property on 15 January 2026 upon the expiration of the joint venture period. Revenue from the Peak Tram, Retail and Others division increased by 2% to HK$349 million, driven by the solid performance of The Peak Tram and The Quail. EBITDA and EBITDA margin The breakdown of the group ’s combined EBITDA (earnings before interest, taxation, depreciation and amortisation) before non-recurring expenses, by business segment and by geographical segment, is set out in the following tables. EBITDA by business segment For the six months ended 30 June 2026 vs 2025HK$m 2026 2025 Group ’s subsidiaries Associates and joint ventures (effective share) Combined total Group’s subsidiaries Associates and joint ventures (effective share) Combined total Hotels 498 81 579 412 54 466 24% Commercial Properties (Leasing) 262 – 262 232 – 232 13% Peak Tram, Retail and Others 12 – 12 (1) – (1) n/a 772 81 853 643 54 697 22% Commercial Properties (Sale of Residences) 3 – 3 – – – n/a 775 81 856 643 54 697 23%
Page 15
-15- EBITDA by geographical segment For the six months ended 30 June 2026 vs 2025HK$m 2026 2025 Group ’s subsidiaries Associates and joint ventures (effective share) Combined total Group’s subsidiaries Associates and joint ventures (effective share) Combined total Greater China 507 41 548 401 27 428 28% Europe (Hotel and Leasing) 57 21 78 46 14 60 30% US 32 19 51 21 13 34 50% Asia (excluding Greater China) 176 – 176 175 – 175 1% 772 81 853 643 54 697 22% Europe (Sale of Residences) 3 – 3 – – – n/a 775 81 856 643 54 697 23% EBITDA margin For the six months ended 30 June 2026 2025 Group’s subsidiaries Associates and joint ventures (effective share) Combined total Group ’s subsidiaries Associates and joint ventures (effective share) Combined total Hotels 18% 19% 19% 17% 15% 16% Commercial Properties (Leasing) 54% – 54% 51% – 51% Commercial Properties (Sale of Residences) 1% – 1% – – – Peak Tram, Retail and Others 3% – 3% – – – Overall EBITDA margin 20% 19% 20% 20% 15% 19% By region Greater China 33% 31% 33% 30% 26% 29% Europe (Hotel and Leasing) 12% 10% 11% 11% 7% 10% Europe (Sale of Residences) 1% – 1% – – – US 4% 24% 6% 3% 19% 4% Asia (excluding Greater China) 24% – 24% 23% – 23% For the six months ended 30 June 2026, the group delivered a combined EBITDA of HK$856 million, an increase of 23% compared to the same period in 2025. Alongside this growth, our EBITDA margin improved across all of the group ’s business and geographical segments. This uplift in profitability, reflecting positive flow-through from top-line growth to EBITDA, validates our commitment to prudent cost management and operational excellence throughout the business.
Page 16
-16- Share of results of joint ventures The group, through its joint venture The Peninsula Shanghai Waitan Hotel Company Limited (PSW), owns a 50% interest in The Peninsula Shanghai Complex which comprises The Peninsula Shanghai hotel and retail arcade and the adjoining Peninsula Residences apartment tower. The group also owns a 50% interest in The Peninsula Istanbul through PIT İ stanbul Otel İşletmeciliğ i Anonim Ş irketi (PIT), a joint venture incorporated in Türkiye. The group ’s share of net loss from these joint ventures for the six months ended 30 June 2026 amounted to HK$29 million (2025: HK$61 million). Share of results of associates The group has a 20% interest in each of The Peninsula Paris and The Peninsula Beverly Hills. The group ’s share of net profit from these hotels for the six months ended 30 June 2026 amounted to HK$4 million (2025: loss of HK$3 million). Fair value of investment properties The investment properties of the group were revalued as at 30 June 2026 by independent firms of valuers using the income capitalisation approach. The net revaluation surplus of HK$66 million was primarily driven by an increase in the appraised market values of the Repulse Bay Complex and The Peak Tower. The group ’s adjusted net asset value In the consolidated statement of financial position, the group ’s hotels (other than retail arcades and offices within the hotels) and golf course are stated at depreciated cost less accumulated impairment losses, if any, but not at fair value. If these assets were to be stated at fair value, the group ’s net assets attributable to shareholders would increase by 20% to HK$43,492 million as indicated in the table below. HK$m As at 30 June 2026 As at 31 December 2025 Net asset value attributable to shareholders 36,309 36,110 Adjusting the value of hotels and golf course to fair value 7,183 7,197 Adjusted net assets attributable to shareholders 43,492 43,307 Net assets per share (HK$) 21.78 21.66 Adjusted net assets per share (HK$) 26.09 25.98
Page 17
-17- Statement of financial position The key components of the group ’s assets and liabilities as at 30 June 2026 and 31 December 2025 are set out in the table below. As at 30 June 2026, the group ’s shareholders ’ funds amounted to HK$36,309 million, representing a per share value of HK$21.78 compared to HK$21.66 as at 31 December 2025. HK$m As at 30 June 2026 As at 31 December 2025 2026 vs 2025 Fixed assets 48,841 49,065 (0%) Properties held for sale 836 1,229 (32%) Other long-term assets 3,022 3,000 1% Derivative financial instruments 22 32 (31%) Cash at banks and in hand 951 762 25% Other assets 1,003 963 4% 54,675 55,051 (1%) Interest-bearing borrowings (12,897) (13,455) 4% Lease liabilities (2,642) (2,671) 1% Derivative financial instruments (60) (61) 2% Other liabilities (2,717) (2,706) (0%) (18,316) (18,893) 3% Net assets 36,359 36,158 1% Represented by: Shareholders ’ funds 36,309 36,110 1% Non-controlling interests 50 48 4% Total equity 36,359 36,158 1% Summary of hotel, commercial and other properties The group has interests in twelve Peninsula hotels in Greater China, Europe, US and Asia (excluding Greater China). In addition to these properties, the group owns residential apartments, office towers and commercial buildings for rental purposes. A summary of the group ’s hotel, commercial and other properties showing both the book value and the fair value as at 30 June 2026 is set out in the table on the next page.
Page 18
-18- 30 June 2026 31 December 2025 Value of 100% of the property (HK$m) Group’s interest Fair value valuation Book value Fair value valuation Book value Hotel properties* # The Peninsula Hong Kong 100% 12,142 9,636 12,196 9,700 The Peninsula Beijing 76.6%∆ 832 826 846 839 The Peninsula Shanghai^ 50% 2,766 1,914 2,674 1,878 The Peninsula London 100% 11,471 8,087 11,564 8,214 The Peninsula Istanbul^ 50% 2,301 2,023 2,349 1,916 The Peninsula Paris^ 20% 4,816 3,792 4,917 3,957 The Peninsula New York 100% 2,270 1,919 2,270 1,925 The Peninsula Chicago 100% 1,239 938 1,239 941 The Peninsula Beverly Hills^ 20% 2,838 286 2,838 301 The Peninsula Tokyo 100% 1,451 846 1,491 872 The Peninsula Bangkok 100% 667 566 703 599 The Peninsula Manila 77.4% 48 15 51 20 42,841 30,848 43,138 31,162 Commercial properties The Repulse Bay Complex 100% 18,482 18,482 18,408 18,408 The Peak Tower 100% 1,787 1,787 1,747 1,747 St. John ’s Building 100% 965 965 991 991 The Peninsula Shanghai Residences 100% 466 466 375 375 21 avenue Kléber 100% 761 761 739 739 The Landmark 70%∆∆ – – – – 22,461 22,461 22,260 22,260 Other properties The Quail and vacant land 100% 285 282 284 281 Vacant land in Thailand 100% 104 104 108 108 Other properties for own use 100% 317 161 320 167 706 547 712 556 Properties under development The Peninsula Yangon 70% n/a – n/a – n/a – n/a – Total market/book value 66,008 53,856 66,110 53,978 * The hotel properties (other than retail arcades and offices within the hotels) and golf course are stated at cost less accumulated depreciation and any provision for impairment losses in the financial statements. Revaluation of these assets is conducted on an annual basis. The directors consider that the fair values of these assets as at 30 June 2026 were not materially different from those as at 31 December 2025. # Including the retail arcades and offices within the hotels. ^ These properties are held by associates/joint ventures. ∆ The group owns 100% economic interest of The Peninsula Beijing with a reversionary interest to the PRC partner in 2033 upon expiry of the joint venture period. ∆∆ The group owns 50% economic interest of The Landmark, subject to a reversionary interest to the Vietnamese partner upon the expiry of the joint venture period in 2026. On 15 January 2026, the joint venture period expired, and the group concluded its management of the property.
Page 19
-19- Properties held for sale The group owns a 100% interest in The Peninsula London Complex which comprises a 190-room Peninsula hotel and 24 Peninsula-branded residences. As at 30 June 2026, 20 residences have been sold (31 December 2025: 18). Properties held for sale as at 30 June 2026 represented the cost of the remaining 4 unsold residences. Other long-term assets The other long-term assets as at 30 June 2026 of HK$3,022 million (31 December 2025: HK$3,000 million) comprised mainly the group ’s 50% interest in The Peninsula Shanghai, the group ’s 50% interest and the value of trademark for The Peninsula Istanbul (PIT), the group ’s 20% interest and the value of its operating right in The Peninsula Paris, and the group ’s 20% interest and the value of its operating right in The Peninsula Beverly Hills. Derivative financial instruments Derivative financial instruments represent the fair value of interest rate and cross currency interest rate swap contracts entered into by the group with financial institutions for hedging purposes. Under the interest rate swap arrangements, the group receives floating interest income and pays fixed interest expense. Under the cross currency interest rate swap arrangements, the group exchanges principal and interest payments denominated in different currencies.
Page 20
-20- Statement of cash flows The following table summarises the key cash movements for the first six months of 2026. For the six months ended 30 June HK$m 2026 2025 Operating activities EBITDA 770 643 Tax paid (43) (45) Net cash generated from operating activities before changes in working capital 727 598 Changes in working capital relating to The Peninsula London Residences sold 385 – Changes in other working capital (69) 12 Net cash generated from operating activities 1,043 610 Investing activities Capital injection into a joint venture (49) (79) Capital expenditure on operating assets (181) (496) Purchase of apartments from a joint venture (134) – Receipts from joint venture, associates and others 150 4 Disposal of an apartment 122 – Net cash used in investing activities (92) (571) Financing activities Net interest and other financing charges (241) (291) Net withdrawal/(placement) of interest-bearing bank deposits with maturity of more than three months 77 (88) Net decrease in bank borrowings (443) (623) Proceeds from issuance of bonds – 869 Lease payment (86) (87) Net cash used in financing activities (693) (220) Net increase/(decrease) in cash and cash equivalents 258 (181) Cash and cash equivalents at 1 January 496 710 Effect of changes in foreign exchange rates 8 31 Cash and cash equivalents at 30 June 762 560 The group ’s EBITDA for the six months ended 30 June 2026 increased by 20% to HK$770 million. After tax payment and changes in working capital, the group ’s net cash inflow from operating activities amounted to HK$1,043 million, representing a 71% increase over the same period last year. With the improvement in overall cash position, bank borrowings of HK$443 million were repaid during the period.
Page 21
-21- Treasury management The group ’s treasury activities are centrally managed and controlled at the corporate level, where liquidity, currency and interest rate risk exposures are monitored. The company manages its liquidity risk by constantly monitoring its loan portfolio and ensuring there are sufficient borrowing facilities to meet its obligations and commitments. The company is in a robust funding position with HK$1.9 billion of unused committed facilities as at end of June 2026. During the period, net borrowings, excluding lease liabilities, decreased to HK$11.9 billion (31 December 2025: HK$12.7 billion) with average committed facility maturity at 1.7 years (31 December 2025: 1.8 years). As at 30 June 2026, the group ’s net external debt to total assets has improved to 22% (31 December 2025: 23%). As at the end of June 2026 the company is rated A from both Japan Credit Rating Agency, Ltd and Rating and Investment Information, Inc. for long-term foreign currency and local currency denominated debts. As at the end of June 2026, 58% of our total committed facilities are classified as green loans or sustainability-linked loans. The company is committed to sustainable luxury and will continuously look for opportunities to establish green financing. In addition to the group ’s consolidated borrowings, The Peninsula Beverly Hills (20% owned), The Peninsula Shanghai (50% owned) and The Peninsula Paris (20% owned) have non-recourse bank borrowings, which are not consolidated in the statement of financial position as the entities owning the assets are not subsidiaries of the company. Including the group ’s share of the gross debt of these non-consolidated entities, total gross borrowings, excluding lease liabilities, would amount to HK$14.0 billion at 30 June 2026 (31 December 2025: HK$14.4 billion). As at 30 June 2026, the group ’s fixed-to-floating interest rate ratio was at 43% (31 December 2025: 59%). The weighted average gross interest rate for the period decreased to 3.7% (31 December 2025: 3.9%) after taking hedging activities into account.
Page 22
-22- Liquidity and capital commitments As at 30 June 2026, the group ’s undrawn committed facilities and cash at banks and in hand amounted to HK$1.9 billion and HK$951 million respectively. Given the group ’s liquidity position, the directors believe that the group will be able to meet the working capital requirements of its existing operations as well as the group ’s capital commitments which are estimated to be HK$2.5 billion as at 30 June 2026. Dividends The company ’s dividend policy is to seek to provide its shareholders with a stable and sustainable dividend stream. The annual dividend payout ratio is based on the company ’s underlying profit, as well as additional commercial factors set out below. The company ’s practice is to offer dividends on a half-yearly basis either in cash or in scrip. Additional commercial factors to be considered in setting the level of dividends include: • current and future cash flows • the level of borrowings, gearing and the cost of financing • requirements for planned investments, acquisitions, and divestments • the macro environment and the business outlook No interim dividend was declared and paid by the company for the six months ended 30 June 2026 (2025: nil). The Board has carefully considered the group ’s financial position and future funding needs and has resolved not to recommend a dividend. The dividend decision made by the Board is in line with the company ’s dividend policy.
Page 23
-23- CONSOLIDATED STATEMENT OF PROFIT OR LOSS – UNAUDITED (HK$m) For the six months ended 30 June Note 2026 2025 Revenue 3 3,929 3,281 Cost of inventories (593) (199) Staff costs and related expenses (1,463) (1,427) Rent and utilities (246) (249) Other operating expenses (857) (763) Operating profit before interest, taxation, depreciation and amortisation (EBITDA) 770 643 Depreciation and amortisation (352) (358) Operating profit 418 285 Interest income 7 7 Financing charges 4 (334) (369) Net financing charges (327) (362) Profit/(loss) after net financing charges 5 91 (77) Share of results of joint ventures (29) (61) Share of results of associates 4 (3) Increase/(decrease) in fair value of investment properties 9(b) 66 (61) Profit/(loss) before taxation 132 (202) Taxation Current tax 6 (82) (73) Deferred tax 6 (28) (14) Profit/(loss) for the period 22 (289) Profit/(loss) attributable to: Shareholders of the company 23 (289) Non-controlling interests (1) – Profit/(loss) for the period 22 (289) Earnings/(loss) per share, basic and diluted (HK$) 7 0.01 (0.17)
Page 24
-24- CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME – UNAUDITED (HK$m) For the six months ended 30 June 2026 2025 Profit/(loss) for the period 22 (289) Other comprehensive income for the period, net of tax: Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of – financial statements of overseas subsidiaries 22 313 – financial statements of joint ventures 167 43 – financial statements of and loans to an associate (8) 50 – hotel operating rights and trademarks (8) 51 173 457 Cash flow hedges: – effective portion of changes in fair values 10 (26) – cost of hedging (3) 2 – transfer from equity to profit or loss (4) (38) 3 (62) Other comprehensive income 176 395 Total comprehensive income for the period 198 106 Total comprehensive income attributable to: Shareholders of the company 199 106 Non-controlling interests (1) – Total comprehensive income for the period 198 106
Page 25
-25- CONSOLIDATED STATEMENT OF FINANCIAL POSITION – UNAUDITED (HK$m) Note As at 30 June 2026 As at 31 December 2025 Non-current assets Investment properties 33,347 33,211 Other properties, plant and equipment 15,494 15,854 9 48,841 49,065 Interest in joint ventures 11 1,986 1,933 Interest in associates 12 445 462 Hotel operating rights and trademarks 13 438 453 Derivative financial instruments 14 7 – Deferred tax assets 153 152 51,870 52,065 Current assets Properties held for sale 10 836 1,229 Derivative financial instruments 14 15 32 Inventories 129 138 Trade and other receivables 15 874 825 Cash at banks and in hand 951 762 2,805 2,986 Current liabilities Trade and other payables 16 (1,753) (1,802) Derivative financial instruments 14 (58) (38) Interest-bearing borrowings 17 (4,664) (5,504) Current taxation (92) (57) Lease liabilities (174) (173) (6,741) (7,574) Net current liabilities (3,936) (4,588) Total assets less current liabilities 47,934 47,477 Non-current liabilities Interest-bearing borrowings 17 (8,233) (7,951) Trade and other payables 16 (135) (139) Derivative financial instruments 14 (2) (23) Net defined benefit retirement obligations (22) (22) Deferred tax liabilities (715) (686) Lease liabilities (2,468) (2,498) (11,575) (11,319) Net assets 36,359 36,158 Capital and reserves Share capital 18 5,947 5,947 Reserves 30,362 30,163 Total equity attributable to shareholders of the company 36,309 36,110 Non-controlling interests 50 48 Total equity 36,359 36,158
Page 26
-26- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY – UNAUDITED (HK$m) Attributable to shareholders of the company Reserves Share capital Hedging reserve* Exchange and other reserves Retained profits Total reserves Total Non– controlling interests Total equity Balance at 31 December 2024 and 1 January 2025 5,947 123 (72) 29,403 29,454 35,401 45 35,446 Changes in equity for the six months ended 30 June 2025 Loss for the period – – – (289) (289) (289) – (289) Other comprehensive income – (62) 457 – 395 395 – 395 Total comprehensive income for the period – (62) 457 (289) 106 106 – 106 Capital contribution from a non-controlling shareholder of a subsidiary – – – – – – 4 4 Balance at 30 June 2025 and 1 July 2025 5,947 61 385 29,114 29,560 35,507 49 35,556 Changes in equity for the six months ended 31 December 2025 Profit/(loss) for the period – – – 609 609 609 (5) 604 Other comprehensive income – (53) 47 – (6) (6) – (6) Total comprehensive income for the period – (53) 47 609 603 603 (5) 598 Dividends paid to non-controlling interests – – – – – – (4) (4) Capital contribution from a non-controlling shareholder of a subsidiary – – – – – – 8 8 Balance at 31 December 2025 and 1 January 2026 5,947 8 432 29,723 30,163 36,110 48 36,158 Changes in equity for the six months ended 30 June 2026 Profit/(loss) for the period – – – 23 23 23 (1) 22 Other comprehensive income – 3 173 – 176 176 – 176 Total comprehensive income for the period – 3 173 23 199 199 (1) 198 Capital contribution from a non-controlling shareholder of a subsidiary – – – – – – 3 3 Balance at 30 June 2026 5,947 11 605 29,746 30,362 36,309 50 36,359 * Included in hedging reserve as at 30 June 2026 was a debit balance of HK$4.1 million in respect of the group ’s cost of hedging (31 December 2025: credit balance of HK$0.4 million).
Page 27
-27- CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS – UNAUDITED (HK$m) For the six months ended 30 June 2026 2025 Operating activities EBITDA 770 643 Tax paid (43) (45) Net cash generated from operating activities before changes in working capital 727 598 Changes in working capital relating to The Peninsula London Residences sold 385 – Changes in other working capital (69) 12 Net cash generated from operating activities 1,043 610 Investing activities Capital injection into a joint venture (49) (79) Capital expenditure on operating assets (181) (496) Purchase of apartments from a joint venture (134) – Receipts from a joint venture 134 – Receipts from associates 13 – Capital contribution from a non-controlling shareholder of a subsidiary 3 4 Disposal of an apartment 122 – Net cash used in investing activities (92) (571) Financing activities Interest received 8 7 Interest and other financing charges (249) (298) Net withdrawal/(placement) of interest-bearing bank deposits with maturity of more than three months 77 (88) Net decrease in bank borrowings (443) (623) Proceeds from issuance of bonds – 869 Capital element of lease rentals paid (6) (17) Interest element of lease rentals paid (80) (70) Net cash used in financing activities (693) (220) Net increase/(decrease) in cash and cash equivalents 258 (181) Cash and cash equivalents at 1 January 496 710 Effect of changes in foreign exchange rates 8 31 Cash and cash equivalents at 30 June (note) 762 560 Note Analysis of cash and cash equivalents As at 30 June 2026 2025 Interest-bearing bank deposits 354 441 Cash at banks and in hand 597 391 Total cash at banks and in hand 951 832 Less: Interest-bearing bank deposits with maturity of more than three months (189) (272) Cash and cash equivalents in the condensed consolidated statement of cash flows 762 560 Total cash at banks and in hand at the end of the reporting period includes cash at banks and deposits with banks of HK$459 million (31 December 2025: HK$421 million) held by subsidiaries in Mainland China which are subject to prevailing regulations on profit repatriation and foreign exchange restrictions.
Page 28
-28- Notes to the unaudited interim financial report 1. Basis of preparation The unaudited Interim Financial Report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and in compliance with Hong Kong Accounting Standard (HKAS) 34, Interim financial reporting , issued by the Hong Kong Institute of Certified Public Accountants (HKICPA). It was authorised for issue by the Board of Directors of the company on 5 August 2026. The Interim Financial Report has been prepared in accordance with the same accounting policies adopted in the 2025 annual financial statements, except for the accounting policy changes that are first effective for the current accounting period of the group. Details of these relevant changes in accounting policies are set out in note 2. The preparation of an interim financial report in conformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year-to-date basis. Actual results may differ from these estimates. The Interim Financial Report contains condensed consolidated financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the group since the 2025 annual financial statements. The condensed consolidated interim financial statements and notes thereon do not include all of the information required for a full set of financial statements prepared in accordance with the HKFRS Accounting Standards. The Interim Financial Report is unaudited, but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, Review of interim financial information performed by the independent auditor of the entity , issued by the HKICPA. The financial information relating to the financial year ended 31 December 2025 that is included in the Interim Financial Report as comparative information does not constitute the company ’s statutory annual consolidated financial statements for that financial year, but is derived from those financial statements. Further information relating to these statutory financial statements disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows: The company has delivered the financial statements for the year ended 31 December 2025 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance. The company ’s auditor has reported on those financial statements. The auditor ’s report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under section 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance.
Page 29
-29- 2. Changes in accounting policies The HKICPA has issued a number of amendments to HKFRS Accounting Standards that are first effective for the current accounting period. None of these developments have had a material effect on the group ’s financial statements. The group has not applied any new standard or interpretation that is not yet effective for the current accounting period. 3. Segment reporting (HK$m) The group is organised on a divisional basis. In a manner consistent with the way in which information is reported internally to the group ’s senior executive management for the purposes of resource allocation and performance assessment, the group ’s reportable segments are as follows: Hotels This segment includes revenue generated from operating hotels, leasing of commercial retail arcades and office premises located within the hotel buildings. Commercial Properties This segment is engaged in the development, leasing and sale of luxury residential apartments, leasing of retail and office premises (other than those in hotel properties), as well as operating food and beverage outlets in such premises. Peak Tram, Retail and Others This segment is engaged in the operation of the Peak Tram, wholesaling and retailing of food and beverage products, The Quail, laundry services, and the provision of management and consultancy services for clubs. No operating segments have been aggregated to form a reportable segment.
Page 30
-30- 3. Segment reporting (HK$m) continued (a) Segment results (HK$m) The results of the group ’s reportable segments for the six months ended 30 June 2026 and 2025 are set out as follows: Hotels Commercial Properties Peak Tram, Retail and Others Consolidated For the six months ended 30 June 2026 2025 2026 2025 2026 2025 2026 2025 Reportable segment revenue 2,699 2,483 881 455 349 343 3,929 3,281 Reportable segment operating profit/(loss) before interest, taxation, depreciation and amortisation (EBITDA) 498 412 265 232 12 (1) 775 643 Depreciation and amortisation (290) (297) (9) (8) (53) (53) (352) (358) Segment operating profit/(loss) before non-recurring expenses 208 115 256 224 (41) (54) 423 285 Non-recurring expenses – – – – (5) – (5) – Segment operating profit/(loss) 208 115 256 224 (46) (54) 418 285
Page 31
-31- 3. Segment reporting (HK$m) continued (a) Segment results (HK$m) continued Analysis of segment revenue: 2026 2025 Recognise at a point in time Recognise over time Rental income on leases Total Recognise at a point in time Recognise over time Rental income on leases Total Hotels – Rooms – 1,482 – 1,482 – 1,334 – 1,334 – Food and beverage 732 – – 732 664 – – 664 – Retail arcades and offices – 17 269 286 – 17 260 277 – Others 122 77 – 199 143 65 – 208 854 1,576 269 2,699 807 1,416 260 2,483 Commercial Properties – Residential properties 13 35 224 272 – 36 217 253 – Offices – 7 26 33 – 6 39 45 – Retail arcades and others 108 17 56 181 96 22 39 157 – Sales of London residential apartments 395 – – 395 – – – – 516 59 306 881 96 64 295 455 Peak Tram, Retail and Others – Golf club 29 51 – 80 29 46 – 75 – Peak Tram operation 180 – – 180 171 – – 171 – Peninsula Merchandising 57 – – 57 64 – – 64 – Others 29 3 – 32 30 3 – 33 295 54 – 349 294 49 – 343 Total 1,665 1,689 575 3,929 1,197 1,529 555 3,281
Page 32
-32- 3. Segment reporting (HK$m) continued (b) Segment assets (HK$m) Segment assets include all tangible and intangible assets and current assets held directly by the respective segments. The group ’s segment assets and unallocated assets as at 30 June 2026 and 31 December 2025 are set out as follows: As at 30 June 2026 As at 31 December 2025 Reportable segment assets Hotels 28,911 29,306 Commercial properties 23,497 23,672 Peak Tram, Retail and Others 1,141 1,127 53,549 54,105 Unallocated assets Derivative financial instruments 22 32 Deferred tax assets 153 152 Cash at banks and in hand 951 762 Consolidated total assets 54,675 55,051 4. Financing charges (HK$m) For the six months ended 30 June 2026 2025 Interest on bank borrowings 260 340 Interest on lease liabilities 80 70 Other borrowing costs 27 16 367 426 Derivative financial instruments: – cash flow hedges, transfer from equity (33) (57) 334 369
Page 33
-33- 5. Profit/(loss) after net financing charges (HK$m) Profit/(loss) after net financing charges is arrived at after charging: For the six months ended 30 June 2026 2025 Cost of inventories – Residential apartments 385 – – Others 208 199 Amortisation 7 7 Depreciation – owned properties, plant and equipment 321 326 – right-of-use assets 24 25 6. Taxation (HK$m) For the six months ended 30 June 2026 2025 Current tax Hong Kong profits tax 51 43 Overseas tax 31 30 82 73 Deferred tax Increase in net deferred tax liabilities relating to revaluation of overseas investment properties 16 1 Decrease in deferred tax assets relating to tax losses recognised – 3 Increase in net deferred tax liabilities relating to other temporary differences 12 10 28 14 110 87 The provision for Hong Kong profits tax is calculated at 16.5% (six months ended 30 June 2025: 16.5%) of the estimated assessable profits for the period. Taxation for subsidiaries outside Hong Kong is calculated at the current tax rates applicable in the relevant jurisdictions.
Page 34
-34- 7. Earnings/(loss) per share (a) Earnings/(loss) per share – basic For the six months ended 30 June 2026 2025 Profit/(loss) attributable to shareholders of the company (HK$m) 23 (289) Weighted average number of shares in issue (million shares) 1,667 1,667 Earnings/(loss) per share (HK$) 0.01 (0.17) 2026 2025 (million shares) (million shares) Issued shares at 1 January 1,667 1,667 Weighted average number of shares in issue at 30 June 1,667 1,667 (b) Earnings/(loss) per share – diluted There were no potential dilutive ordinary shares in existence during the periods ended 30 June 2026 and 2025 and hence the diluted earnings/(loss) per share is the same as the basic earnings/(loss) per share. 8. Dividends No dividends were approved or paid to shareholders of the company during the periods ended 30 June 2026 and 2025. 9. Investment properties, other properties, plant and equipment (HK$m) (a) Acquisitions and disposals During the six months ended 30 June 2026, the group acquired two apartment units from PSW at HK$134 million. Items of properties, plant and equipment disposed of during the six months ended 30 June 2026 were mainly related to an apartment in Mainland China of carrying amount of HK$96 million. (b) Valuation of investment properties All investment properties of the group were revalued as at 30 June 2026 by applying a capitalisation rate to the expected rental income adjusted for the quality and location of the building. The changes in fair value of the investment properties during the period were accounted for in the consolidated statement of profit or loss. The valuations were carried out by valuers independent of the group, who have staff with recent and relevant experience in the location and category of the properties being valued. Discussions have been held with the valuers on the valuation assumptions and valuation results when the valuation is performed at the reporting date. As a result of the revaluation, a net revaluation gain of HK$66 million (six months ended 30 June 2025: deficit of HK$61 million) has been included in the consolidated statement of profit or loss.
Page 35
-35- 10. Properties held for sale The group owns a 100% interest in The Peninsula London Complex which comprises a 190-room Peninsula hotel and twenty-four luxury Peninsula-branded Residences. The land area of the overall site is approximately 67,000 square feet and the gross floor area of the Peninsula Residences is approximately 119,000 square feet. Two units of Peninsula London Residences were sold during the six months ended 30 June 2026 (six months ended 30 June 2025: nil). As at 30 June 2026, a total of twenty Peninsula London Residences were sold. Properties held for sale as at 30 June 2026 represented the cost of the remaining four unsold Residences. 11. Interest in joint ventures (HK$m) As at 30 June 2026 As at 31 December 2025 Share of net assets 1,662 1,475 Loans to a joint venture (note 11(b)) 324 458 1,986 1,933 (a) Details of the joint ventures are as follows: Company name Form of business structure Place of incorporation and operation Particulars of issued and paid up capital Group’s effective interest Principal activity The Peninsula Shanghai Waitan Hotel Company Limited (PSW)* Incorporated PRC RMB808,953,750 (31 December 2025: RMB808,953,750) 50% Hotel investment and apartments held for sale PIT İstanbul Otel İşletmeciliğ i Anonim Şirketi (PIT)** Incorporated Türkiye TRY7,340,485,638 (31 December 2025: TRY6,814,197,428) 50% Hotel investment * PSW holds a 100% interest in The Peninsula Shanghai. ** PIT holds a 100% interest in The Peninsula Istanbul. (b) The loans to The Peninsula Shanghai (BVI) Limited, holding company of PSW, are denominated in US dollar, unsecured, interest free and have no fixed repayment terms. (c) PSW has pledged its properties inclusive of the land use rights as security for a loan facility amounting to RMB904 million (HK$1,043 million) (31 December 2025: RMB1,220 million (HK$1,357 million)). As at 30 June 2026, the loan drawn down amounted to RMB904 million (HK$1,043 million) (31 December 2025: RMB914 million (HK$1,016 million)). The net carrying amount of these pledged assets amounted to RMB1,942 million (HK$2,241 million) (31 December 2025: RMB2,004 million (HK$2,228 million)).
Page 36
-36- 12. Interest in associates (HK$m) As at 30 June 2026 As at 31 December 2025 Interest in associates 445 462 (a) Details of the principal unlisted associates, which are accounted for using the equity method in the group ’s consolidated financial statements, are as follows: Company name Form of business structure Place of incorporation and operation Particulars of issued and paid up capital Group ’s effective interest* Principal activity 19 Holding SAS (19 Holding)** Incorporated France EUR1,000 20% Investment holding Majestic EURL (Majestic) Incorporated France EUR80,000,000 20% Hotel investment and investment holding Le 19 Avenue Kléber Incorporated France EUR100,000 20% Hotel operation The Belvedere Hotel Partnership (BHP) # Partnership United States of America US$46,500,000 20% Hotel investment * The group ’s effective interest is held indirectly by the company. ** 19 Holding holds a 100% direct interest in Majestic which owns The Peninsula Paris. # BHP holds a 100% interest in The Peninsula Beverly Hills. (b) Included in the balance of interest in associates are unsecured long-term loans to 19 Holding of HK$390 million (31 December 2025: HK$404 million). The loans were made pro rata to the group ’s shareholding in 19 Holding; bear interest rates at 2.9% (2025: 2.9%) and are repayable in December 2027. (c) Majestic has pledged its hotel property as security for a loan facility amounting to EUR227 million (HK$2,032 million) (31 December 2025: EUR227 million (HK$2,075 million)). As at 30 June 2026, the loan drawn down amounted to EUR227 million (HK$2,032 million) (31 December 2025: EUR227 million (HK$2,075 million)). As at 30 June 2026, the net carrying amount of these pledged assets amounted to EUR424 million (HK$3,797 million) (31 December 2025: EUR432 million (HK$3,949 million)). (d) BHP has pledged its hotel property to an independent financial institution as security for BHP ’s loan facility, amounting to US$97 million (HK$757 million) (31 December 2025: US$110 million (HK$858 million)). As at 30 June 2026, the loan drawn down amounted to US$97 million (HK$757 million) (31 December 2025: US$100 million (HK$780 million)). As of 30 June 2026, the net carrying amount of the pledged assets amounted to US$37 million (HK$289 million) (31 December 2025: US$37 million (HK$289 million)).
Page 37
-37- 13. Hotel operating rights and trademarks (HK$m) 2026 Cost At 1 January 724 Exchange adjustments (11) At 30 June 713 Accumulated amortisation At 1 January (271) Exchange adjustments 3 Amortisation for the period (7) At 30 June (275) Net book value 438 Hotel operating rights and trademarks represent the cost attributable to securing the group ’s rights to operate The Peninsula Beverly Hills and The Peninsula Paris as well as the cost of acquisition of certain trademarks for The Peninsula Istanbul. Hotel operating rights and trademarks are amortised on a straight-line basis over the terms of the relevant operating periods of The Peninsula Beverly Hills, The Peninsula Paris and The Peninsula Istanbul respectively. The amortisation charge for the period is included in “Depreciation and amortisation ” in the consolidated statement of profit or loss. 14. Derivative financial instruments (HK$m) As at 30 June 2026 As at 31 December 2025 Assets Liabilities Assets Liabilities Cash flow hedges: Interest rate swaps 19 (2) 32 (23) Cross currency interest rate swaps 3 (58) – (38) 22 (60) 32 (61) Less: Portion to be settled within one year Cash flow hedges: Interest rate swaps (12) – (32) – Cross currency interest rate swaps (3) 58 – 38 (15) 58 (32) 38 Amount to be settled after one year 7 (2) – (23)
Page 38
-38- 15. Trade and other receivables (HK$m) As at 30 June 2026 As at 31 December 2025 Trade debtors 400 403 Rental deposits, payments in advance and other receivables 469 414 Tax recoverable 5 8 874 825 The amount of the group ’s trade and other receivables expected to be recovered or recognised as expenses after more than one year is HK$178 million (31 December 2025: HK$166 million). The remaining trade and other receivables are expected to be recovered or recognised as expenses within one year. The group has no concentrations of credit risk in view of its large number of customers. The group maintains a defined credit policy to ensure that credit is given only to customers with an appropriate credit history. In respect of the group ’s rental income from operating leases, rentals are normally received in advance and sufficient rental deposits are held to cover potential exposure to credit risk. As such, the group normally does not obtain collateral from its customers. The ageing analysis of trade debtors is as follows: As at 30 June 2026 As at 31 December 2025 Current 342 354 Less than one month past due 31 22 One to three months past due 23 15 More than three months but less than twelve months past due 4 12 Amounts past due 58 49 400 403 Trade debtors are normally due within 30 days from the date of billing. The group is actively monitoring the past due receivables and various measures are being taken to reduce the group ’s potential bad debts.
Page 39
-39- 16. Trade and other payables (HK$m) As at 30 June 2026 As at 31 December 2025 Trade creditors 158 205 Interest payable 9 21 Accruals for properties, plant and equipment 79 128 Tenants ’ deposits 361 356 Guest deposits and gift vouchers 314 271 Provision for bonus and other staff costs 276 356 VAT and other taxes payable 160 159 Contract liabilities 91 9 Other payables 440 436 Financial liabilities measured at amortised cost 1,888 1,941 Less: Non-current portion of trade and other payables (135) (139) Current portion of trade and other payables 1,753 1,802 The amount of trade and other payables of the group expected to be settled or recognised as income after more than one year is HK$135 million (31 December 2025: HK$139 million). The remaining trade and other payables are expected to be settled or recognised as income within one year or are repayable on demand. The ageing analysis of trade creditors is as follows: As at 30 June 2026 As at 31 December 2025 Less than three months 153 191 Three to six months 3 11 More than six months 2 3 158 205
Page 40
-40- 17. Interest-bearing borrowings (HK$m) As at 30 June 2026 As at 31 December 2025 Total facilities available: Term loans and revolving credits 13,897 14,515 Guaranteed bonds 775 796 Uncommitted facilities, including bank overdrafts 285 248 14,957 15,559 Utilised at 30 June/31 December: Term loans and revolving credits 12,009 12,533 Guaranteed bonds 775 796 Uncommitted facilities, including bank overdrafts 149 168 12,933 13,497 Less: Unamortised financing charges (36) (42) 12,897 13,455 Represented by: Long-term bank loans and bonds, repayable within one year 4,664 5,504 Short-term bank loans and overdrafts, repayable on demand – – 4,664 5,504 Long-term bank loans and bonds, repayable: Between one and two years 5,090 1,178 Between two and five years 3,179 6,566 Over five years – 249 8,269 7,993 Less: Unamortised financing charges (36) (42) Non-current portion of long-term bank loans and bonds 8,233 7,951 Total interest-bearing borrowings 12,897 13,455 Interest-bearing borrowings are carried at amortised cost. The non-current portion of long-term bank loans and bonds is not expected to be settled within one year and all borrowings are unsecured.
Page 41
-41- 18. Share capital At 30 June 2026 At 31 December 2025 No. of shares (million) HK$m No. of shares (million) HK$m Ordinary shares, issued and fully paid At 1 January and 30 June 2026/31 December 2025 1,667 5,947 1,667 5,947 All ordinary shares issued during the period rank pari passu in all respects with the existing shares in issue. All shareholders are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company ’s residual assets. 19. Fair value measurement of financial instruments (a) Financial instruments carried at fair value HKFRS 13, Fair value measurement requires disclosure of the fair value of the group ’s financial instruments measured at the end of the reporting period on a recurring basis, categorised into the three-level fair value hierarchy. The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows: • Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available. • Level 3 valuations: Fair value measured using significant unobservable inputs. All derivative financial instruments carried at fair value are categorised as falling under Level 2 of the fair value hierarchy.
Page 42
-42- 19. Fair value measurement of financial instruments continued (b) Fair values of financial instruments carried at other than fair value Financial instruments are carried at amounts not materially different from their fair values as at 30 June 2026. The carrying amounts of the loans to an associate (note 12) approximate their fair values. The loans to a joint venture (note 11) are unsecured, interest free and have no fixed repayment terms. Given these terms, it is not meaningful to disclose its fair value. 20. Commitments (HK$m) Capital commitments outstanding as at 30 June 2026 not provided for in the Interim Financial Report were as follows: As at 30 June 2026 As at 31 December 2025 Contracted for Authorised but not contracted for Total Contracted for Authorised but not contracted for Total Capital commitments of the group 76 2,371 2,447 104 746 850 The group ’s share of capital commitments of joint ventures and associates 8 60 68 1 71 72 84 2,431 2,515 105 817 922 The group ’s capital commitments include planned capital expenditures of HK$2.1 billion for renovations at The Peninsula Hong Kong and The Peninsula Tokyo. 21. Material related party transactions During the six months ended 30 June 2026, the group did not enter into any material related party transactions other than those consistent with the disclosures in the group ’s annual financial statements for the year ended 31 December 2025. The purchase of two apartment units from PSW for a total consideration of USD17.1 million (HK$134 million), which was previously disclosed in the group ’s annual financial statements for the year ended 31 December 2025, was completed in April 2026.
Page 43
-43- CORPORATE GOVERNANCE AND OTHER INFORMATION Corporate Governance The Board of Directors believes that our corporate culture, in alignment with our purpose, values, and strategic objectives, is fundamental to the group ’s long-term success, strong reputation, and sustainable growth. The Board of Directors sets and promotes company culture based on the principle of “doing the right thing ”, and expects senior and middle-level management to actively promote and live by this principle. With that in mind, the Board leads a governance framework that embeds and reinforces this corporate culture across the group through clear strategic direction, established policies and mandatory training programmes, ensuring that integrity, accountability and respect for our people remain central to how the group operates. The Governance section in the 2025 Annual Report reinforces the commitment of the Board of Directors and senior management to high levels of governance, acting with integrity and practicing accountability and transparency in our business operations. The Stock Exchange ’s Corporate Governance Code, set out in Appendix C1 of the Listing Rules (CG Code), forms the foundation of the HSH Corporate Governance Code. The Board of Directors recognises the principles of the CG Code and has applied them to our governance framework and practices, as disclosed in the Governance section of the 2025 Annual Report. Throughout the six months ended 30 June 2026, the company has complied with all of the code provisions and recommended best practices in the CG Code, save for the publication of quarterly financial results and disclosure of individual senior management remuneration, as set out in the Corporate Governance Report on page 157 of the 2025 Annual Report. In addition, the Board has considered the recommended best practice regarding the appointment of a lead independent non-executive director ( “INED”). The Board considers such appointment not necessary at present, as the existing communication and engagement channels enable effective dialogue among the INEDs, the Board and shareholders. These include regular interactions between the Chairman and the INEDs, as well as engagement with shareholders through investor meetings. Risk Management and Internal Control The Board oversees the group ’s risk management and internal control systems with the support of the Audit Committee, the Group Risk Committee and the Audit and Risk Management Department. The group maintains a comprehensive risk management framework, guided by the “Three Lines Model ”, to identify, manage and mitigate risks within the group ’s defined risk appetite. Principal and operational risks are reviewed biannually, taking into account both financial and non-financial impacts. Details of the group ’s approach to risk governance and principal risks have been disclosed in the Governance section of the 2025 Annual Report. The Board of Directors has considered and confirmed the Audit Committee ’s assessment of the effectiveness of the risk management and control systems in the group. These systems operate efficiently to identify, manage and mitigate risks, safeguard the group ’s assets, prevent fraud and misconduct, minimise losses, ensure financial accuracy, and maintain regulatory compliance. Throughout the first half of 2026, no areas of concern were identified that could materially affect the effectiveness of the group ’s operational, financial reporting and compliance controls. The Board confirms that the existing risk management and internal control systems remained effective and adequate during the first half of 2026.
Page 44
-44- Corporate Responsibility and Sustainability Our 2025 Corporate Responsibility and Sustainability Report (CRS Report) provides information on our strategic approach in managing sustainability issues, reviews our progress towards Sustainable Luxury Vision 2030 goals, and shares related initiatives and programmes. The CRS Report and Climate-related Disclosures have been prepared in accordance with the Environmental, Social and Governance Reporting Code (ESG Code) set out in Appendix C2 of the Listing Rules. To align with international best practices and provide deeper insights into industry-specific and sustainability topics, we reference the Global Reporting Initiative Sustainability Reporting (GRI) Standards, the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, the Sustainability Accounting Standards Board (SASB) Standards, and the International Sustainability Standards Board (ISSB) ’s International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures. KPMG was commissioned to perform a limited assurance engagement and provide an independent conclusion on selected information within the CRS Report. The CRS Report and Climate-related Disclosures are available on the websites of the company and the Stock Exchange. Purchase, Sale or Redemption of Listed Securities There was no purchase, sale or redemption of the company ’s listed securities by the company or any of its subsidiaries during the six months ended 30 June 2026. Dealings in Company Securities All Directors conduct their dealings in compliance with the company ’s Code for Dealing in the Company ’s Securities by Directors (Securities Code), which imposes standards no less stringent than those set out in the Stock Exchange ’s Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules (Model Code). Directors are required to seek prior approval before undertaking any dealings. All Directors confirmed full compliance with the standards set out in the Model Code and the Securities Code during the six months ended 30 June 2026. A similar code to our Securities Code applies to specified employees including senior management and leaders of key functions who may from time to time have access to inside information. All such employees have also confirmed their full compliance with the requirements of the adopted Code for Dealing in the Company ’s Securities by Specified Employees. Interim Dividend The Board of Directors resolved not to declare an interim dividend for the six months ended 30 June 2026 (2025: nil) having considered the company ’s financial position and future funding needs, and in line with our dividend policy. Interim Report The Interim Report will be published on the websites of the company and the Stock Exchange on or about 18 August 2026. Printed copies of the Interim Report will be dispatched on or about 19 August 2026, in accordance with the company ’s corporate communications arrangement. By Order of the Board Till Lembke Company Secretary Hong Kong, 5 August 2026
Page 45
-45- As at the date of this announcement, the Board of Directors of the company comprises the following Directors: Non-Executive Chairman The Hon. Sir Michael Kadoorie Non-Executive Deputy Chairman Philip Lawrence Kadoorie Executive Director Chief Executive Officer Benjamin Julien Arthur Vuchot Non-Executive Directors Nicholas Timothy James Colfer Andrew Clifford Winawer Brandler James Lindsay Lewis Diego Alejandro González Morales Peter Camille Borer Independent Non-Executive Directors Patrick Blackwell Paul Dr Rosanna Yick Ming Wong Dr Kim Lesley Winser Ada Koon Hang Tse Kalpana Desai Adrian David Man Kiu Li Philippe Pierre Rainham Ward