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. (Incorporated in Bermuda with limited liability) (Stock Code: 563) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board of directors (the “ Board”) of Shanghai Industrial Urban Development Group Limited (the “ Company”) is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the “ Group”) for the six months ended 30 June 2026 (the “ Period”), together with the comparative figures for the corresponding period in 2025, as follows:
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– 2 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2026 2026 2025 (Unaudited) (Unaudited) Notes HK$’000 HK$’000 REVENUE Goods and services 4 853,775 1,463,008 Leases 417,929 364,827 Total revenue 1,271,704 1,827,835 Cost of sales (931,962) (1,557,961) Gross profit 339,742 269,874 Other income 26,881 33,150 Other expenses, gains and losses, net, including expected credit losses on financial assets (30,260) (63,501) Fair value loss on investment properties, net (60,480) (151,069) Distribution and selling expenses (196,565) (101,616) General and administrative expenses (189,690) (197,546) Finance costs 5 (294,580) (284,560) Share of results of associates (34,082) 609 Share of results of joint ventures (16,352) 13,410 Loss before tax (455,386) (481,249) Income tax expense 6 (33,700) (81,178) LOSS FOR THE PERIOD 7 (489,086) (562,427) Loss for the period attributable to: Owners of the Company 8 (414,448) (492,139) Non-controlling interests (74,638) (70,288) (489,086) (562,427) LOSS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY FOR THE PERIOD Basic and diluted (HK cents) 8 (8.67) (10.29)
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– 3 – 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss in subsequent periods: Exchange differences on translation from functional currency to presentation currency 801,320 643,733 Items that will not be reclassified to profit or loss: Exchange differences on translation from functional currency to presentation currency (121,254) (118,089) Changes in fair value on equity instruments designated at fair value through other comprehensive income, net of tax (1,844) 1,448 OTHER COMPREHENSIVE INCOME FOR THE PERIOD,NET OF TAX 678,222 527,092 TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD 189,136 (35,335) Attributable to: Owners of the Company 97,713 (72,342) Non-controlling interests 91,423 37,007 189,136 (35,335)
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– 4 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 JUNE 2026 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes HK$’000 HK$’000 NON-CURRENT ASSETS Investment properties 9 22,562,033 21,784,418 Property, plant and equipment 1,681,880 1,670,581 Right-of-use assets 480,029 479,356 Goodwill — 23,604 Intangible assets 59,139 56,993 Interests in associates 1,659,409 1,632,286 Interests in joint ventures 2,525,473 2,449,488 Equity instruments at fair value through other comprehensive income 24,625 26,135 Restricted and pledged bank deposits 178,063 149,180 Deferred tax assets 92,569 93,121 Total non-current assets 29,263,220 28,365,162 CURRENT ASSETS Inventories 586 438 Properties under development for sale and properties held for sale 16,117,775 12,737,528 Trade and other receivables 10 917,636 929,471 Amounts due from related companies 6,259 1,710 Prepaid income tax and land appreciation tax 528,218 492,979 Restricted and pledged bank deposits 5,032 9,485 Bank balances and cash 4,455,544 4,571,721 Total current assets 22,031,050 18,743,332
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– 5 – 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes HK$’000 HK$’000 CURRENT LIABILITIES Trade and other payables 11 4,215,844 4,325,142 Amounts due to related companies 588,982 579,597 Pre-sale proceeds received on sales of properties 921,605 509,437 Bank and other borrowings 12 4,993,696 8,123,276 Lease liabilities 17,356 17,214 Income tax and land appreciation tax payables 783,536 803,636 Dividends payable 23,641 23,641 Total current liabilities 11,544,660 14,381,943 NET CURRENT ASSETS 10,486,390 4,361,389 TOTAL ASSETS LESS CURRENT LIABILITIES 39,749,610 32,726,551 NON-CURRENT LIABILITIES Deferred revenue 11 26,471 25,808 Bank and other borrowings 12 18,008,571 11,234,605 Lease liabilities 106,463 113,981 Deferred tax liabilities 2,631,331 2,548,339 Total non-current liabilities 20,772,836 13,922,733 NET ASSETS 18,976,774 18,803,818 CAPITAL AND RESERVES Share capital 191,217 191,217 Reserves 12,603,527 12,463,890 Equity contributable to owners of the Company 12,794,744 12,655,107 Non-controlling interests 6,182,030 6,148,711 Total equity 18,976,774 18,803,818
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– 6 – NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 JUNE 2026 1. BASIS OF PREPARATION The interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with HKAS 34 Interim Financial Reporting . The interim condensed consolidated 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. The consolidated financial statements are presented in Hong Kong dollars (“ HK$”), and all values are rounded to the nearest thousand except when otherwise indicated, which is different from the Company’s functional currency of Renminbi (“ RMB”), as the Company is listed on the Stock Exchange and most of its investors are located in Hong Kong. 2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES 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
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– 7 – The nature and impact of the amended HKFRS Accounting Standards are described below: (a) Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity’s rights to the contractual cash flows expire or are transferred, while a financial liability is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Since the Group’s accounting policy for the derecognition of financial assets and liabilities in prior years aligned with the amendments and the Group did not have the financial assets that were addressed by the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. The Group will provide additional disclosures for its equity investments designated at fair value through other comprehensive income in the Group’s consolidated financial statements for the year ending 31 December 2026. (b) Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity clarify the application of the “own-use” requirements for in-scope contracts and amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts. The amendments also include additional disclosures that enable users of financial statements to understand the effects these contracts have on an entity’s financial performance and future cash flows. As the Group did not have any contracts that are in the scope of the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. (c) Annual Improvements to HKFRS Accounting Standards — Volume 11 set out narrow scope amendments to HKFRS 1, HKFRS 7 (and the accompanying Guidance on implementing HKFRS 7), HKFRS 9, HKFRS 10 and HKAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding HKFRS Accounting Standards. The amendments did not have any impact on the interim condensed consolidated financial information. 3. SEGMENT INFORMATION Information reported to the directors of the Company, being the chief operating decision makers, for the purposes of resource allocation and performance assessment focuses on revenue analysis. No other discrete financial information is provided other than the Group’s results and financial position as a whole. Accordingly, only entity-wide disclosures, major customer and geographic information are presented. The Group’s operations are located in the Chinese mainland. All revenue and non-current assets of the Group, except for certain property and equipment, are generated from and located in the Chinese mainland. No revenue from a single customer amounted to over 10% of the total revenue of the Group for the six months ended 30 June 2026 and 2025.
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– 8 – 4. REVENUE (i) Disaggregation of revenue from contracts with customers For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Types of goods or services Sales of properties 737,860 1,336,687 Hotel operations 105,986 119,528 Property management 9,929 6,793 Total 853,775 1,463,008 Timing of revenue recognition At a point in time 737,860 1,336,687 Over time 115,915 126,321 853,775 1,463,008 All the revenue of the Group generated from contracts with customers was originated in the Chinese mainland. (ii) Leases For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Revenue arising from operating leases 417,929 364,827 5. FINANCE COSTS For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Interest on bank and other borrowings 292,243 283,734 Interest on amounts due to related companies 344 5,394 Interest on lease liabilities 2,224 2,793 Total finance costs 294,811 291,921 Less: Amounts capitalised into properties under development for sale (231) (7,361) 294,580 284,560
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– 9 – 6. INCOME TAX For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Current tax: PRC Corporate Income Tax 38,006 26,962 PRC Land Appreciation Tax 4,761 82,810 42,767 109,772 Deferred tax (9,067) (28,594) Income tax for the period 33,700 81,178 7. LOSS FOR THE PERIOD The Group’s loss before tax is arrived at after charging/(crediting): For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Cost of properties held for sale recognised as an expense 695,347 1,312,537 Impairment loss recognised on goodwill 23,604 — Impairment of financial assets: Impairment of amounts due from a related company 296 44,183 Reversal of impairment of trade and other receivables (102) (137) Depreciation for property, plant and equipment 58,655 65,259 Depreciation of right-of-use assets 14,379 33,933 Interest income on bank deposits (6,009) (7,401) Exchange differences, net 3,222 10,284
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– 10 – 8. LOSS PER SHARE The calculation of the basic loss per share attributable to owners of the Company is based on the following data: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Loss Loss for the purpose of calculating basic loss per share: Loss for the period attributable to owners of the Company (414,448) (492,139) For the six months ended 30 June 2026 2025 ’000 ’000 Number of shares Weighted average number of ordinary shares for the purpose of calculating basic loss per share 4,780,415 4,780,415 9. INVESTMENT PROPERTIES The fair values of the Group’s investment properties as at 30 June 2026 have been arrived at on the basis of valuation carried out on the respective dates by Jones Lang LaSalle Corporate Appraisal and Advisory Limited (“ JLL”), an independent qualified professional valuer. JLL has appropriate qualification and recent experience in the valuation of similar properties in the relevant locations. The fair value is determined mainly using the income approach by taking into account the net rental income of the properties derived from the existing leases and/or achievable in the existing market with due allowance for the reversionary income potential of the leases, which have been then capitalised to determine the fair value at an appropriate capitalisation rate. The resulting net decrease in fair values of the Group’s investment properties of HK$60,480,000 (six months ended 30 June 2025: HK$151,069,000) was recognised directly in profit or loss for the six months ended 30 June 2026. During the six months ended 30 June 2026, the Group has no expenditures on certain investment properties under development (six months ended 30 June 2025: HK$234,000). During the six months ended 30 June 2026, the management of the Group changed the intention from selling the commercial units of several residential property projects to lease them out for rental. Accordingly, properties held for sale with a carrying amount of HK$18,457,000 (six months ended 30 June 2025: HK$2,313,000) were transferred to investment properties upon inception of lease agreements with the tenants. In the opinion of the management of the Group, the fair value gain or loss in respect of these properties at the date of transfer was considered to be insignificant. The Group did not dispose of any investment properties during the six months ended 30 June 2026 and 2025.
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– 11 – 10. TRADE AND OTHER RECEIVABLES 30 June 2026 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Trade receivables — Contracts with customers Sales of properties 323,032 310,400 Hotel operations and others 21,665 24,532 — Lease receivables 13,670 39,503 358,367 374,435 Less: expected credit losses (“ ECLs”) allowance (96) (93) 358,271 374,342 Other receivables 261,360 277,150 Receivable from a former subsidiary 427,175 411,764 Advance payments to contractors 19,931 21,290 Prepaid other taxes 276,480 254,628 Deposits and prepayments 1,594 2,061 1,344,811 1,341,235 Less: ECLs allowance (427,175) (411,764) 917,636 929,471 The following is an ageing analysis of trade receivables, net of ECL allowance, presented based on the date of billing at the end of the reporting period: 30 June 2026 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Within 90 days 37,238 54,332 Within 91 days to one year 38,449 53,757 Over one year 282,584 266,253 358,271 374,342
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– 12 – 11. TRADE AND OTHER PAYABLES AND DEFERRED REVENUE 30 June 2026 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Trade and other payables recognised as current liabilities Trade payables 967,015 989,161 Accrued expenditure on properties under development for sale 2,108,705 2,607,566 Rental deposits and receipts in advance from tenants 252,729 222,942 Payables to the Shanghai government department 8,952 8,626 Accrued charges and other payables 704,216 351,749 Other taxes payable 174,227 145,098 4,215,844 4,325,142 Deferred revenue recognised as non-current liabilities Deferred revenue 26,471 25,808 The following is an ageing analysis of the Group’s trade payables presented based on the invoice date at the end of the reporting period: 30 June 2026 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Within one year 467,511 779,881 Over one year 499,504 209,280 967,015 989,161 12. BANK AND OTHER BORROWINGS During the six months ended 30 June 2026, the Group obtained new bank and other borrowings of HK$9,929,023,000 (six months ended 30 June 2025: HK$3,737,793,000). As at 30 June 2026, the bank and other borrowings carried variable interest at rates ranging from 2.11% to 3.50% (31 December 2025: 1.99% to 6.69%) per annum and are payable from three months to over five years (31 December 2025: three months to over five years). The borrowings have been obtained for the purpose of property development projects and general working capitals of the Group. During the six months ended 30 June 2026, the Group repaid the bank and other borrowings of HK$7,018,525,000 (six months ended 30 June 2025: HK$3,814,550,000).
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– 13 – MANAGEMENT DISCUSSION AND ANALYSIS PROPERTY MARKET REVIEW In the first half of 2026, China’s property market was in a phase of bottoming out and adjustment. With concerted efforts from both the policy and market sides, some cities showed signs of stabilisation, though polarisation between cities remained pronounced. The central government adhered to the principles of “housing being for living but not for speculation” and “city-specific policies”, continuing to refine the new model for property development. Supportive policies, such as those relating to mortgages and taxes, continued to take effect, leading to the orderly release of rigid and upgrading housing demand. Urban renewal, urban village renovations, the construction of affordable housing and the acquisition of existing commodity housing progressed steadily, whilst substantial progress was made in addressing industry risks, such as the debt restructuring of property developers and guaranteed delivery of property projects. At the market level, the new-build market continued to recover and the secondary market remained active; first-tier and core second-tier cities were the first to stabilise, whilst ordinary second-tier cities as well as third- and fourth-tier cities continued to face pressure to reduce inventory. According to the National Bureau of Statistics, in the first half of 2026, national property development investment fell by 18.0% year-on-year, whilst total sales and gross floor area sold for newly-constructed commodity housing declined by 13.6% and 11.6% year-on-year, respectively. Looking ahead, the industry is expected to achieve more robust and sustainable development as supply-demand dynamics improve, risks are resolved in an orderly manner, and the development model undergoes transformation. BUSINESS REVIEW Overview In the first half of 2026, the property sector entered a period of profound transformation, with product quality and operational capabilities becoming the competitive barriers that enable companies to weather market cycles. In response to changes in the market environment, the Group proactively fostered its strategic upgrade, focusing on the three key directions of “urban renewal, asset operation and capital operation”. It took the lead in implementing the “3+4+4” standard system for good communities, creating comprehensive communities through “good housing, good amenities and good services”, thereby continuously enhancing operational resilience. During the period, the construction of two flagship projects — Xi’an ARIA and Shanghai Industrial Yunxiu — duly commenced, marking the transition of the “good communities” standard system from planning to implementation. Among key projects, Ocean Times in Shanghai, Qiyuan in Xi’an, Felicity Mansion in Yantai, Summitopia in Tianjin, Ocean One in Shanghai and Cloud Vision in Shanghai all demonstrated robust sales performance, continuing to contribute to the Group’s revenue. The Group will adhere to its development direction of “centering on urban renewal and focusing on core cities”, deepening its presence in Shanghai and other core first- and second-tier cities, whilst striving to enhance profitability and comprehensive strengths to further consolidate the Group’s leading market position.
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– 14 – Contract Sales During the six months ended 30 June 2026, the Group’s contract sales from commodity housing increased by 87.1% year-on-year to RMB1,289,520,000 (six months ended 30 June 2025: RMB689,140,000). Total contract sales in terms of G.F.A. were 75,000 sq.m., up 82.9% year-on-year, with a total average selling price of approximately RMB17,200 per sq.m. This was mainly attributable to the higher proportion of sales in second-tier cities during the period. During the period, the Group’s key projects for sale were Ocean Times in Shanghai, Qiyuan in Xi’an, Felicity Mansion in Yantai, Summitopia in Tianjin, Ocean One in Shanghai and Cloud Vision in Shanghai, which accounted for approximately 40.9%, 27.3%, 11.6%, 8.1%, 7.3% and 2.9% of total contract sales, respectively. Land Bank During the six months ended 30 June 2026, the Group’s land bank was developed into 28 property projects located in 10 major cities in China, including Shanghai, Beijing, Tianjin, Xi’an, Chongqing, Wuxi, Shenyang, Yantai, Shenzhen and Wuhan, and comprised medium to high class residential and commercial properties, most of which were completed or still under development. The Group has a land bank with a future saleable planned G.F.A. of approximately 3,179,000 sq.m. to support its development for the next three to five years. In the first half of 2026, China’s land market continued to follow the trend of “quantity reduction and quality enhancement”, with both the overall transaction volume and market activity declining, and property developers generally adopting a cautious approach to land acquisition. However, prime land parcels in core cities remained highly sought after, and the intensity of bidding showed no sign of abating. Adhering to a prudent land acquisition strategy, the Group carefully selected suitable land parcels and precisely secured scarce resources in prime locations. During the period, the Group successfully acquired a land parcel in the Lingyun Community of Xuhui District, Shanghai at approximately RMB2,675,000,000. With a site area of 27,571 sq. m., the land parcel is for a mixed-use development and may be developed into approximately 75% of residential development with 25% commercial facilities, adding high-quality reserves for future project development.
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– 15 – Property Development During the six months ended 30 June 2026, the Group had five projects with a total G.F.A. of 758,000 sq.m. under construction, which primarily included Ocean Times in Shanghai, Originally in Xi’an, TODTOWN in Shanghai, Felicity Mansion in Yantai and Qiyuan in Xi’an. The Group delivered a total G.F.A. of 29,000 sq.m., which mainly comprised Ocean Times in Shanghai, Ocean One in Shanghai, Summitopia in Tianjin and Felicity Mansion in Yantai. In the first half of 2026, the rollout of favourable policies for the property sector continued. The Group capitalised on this market opportunity to accelerate the sales launch of several residential projects in a timely manner. Projects such as Ocean Times in Shanghai, Qiyuan in Xi’an, Felicity Mansion in Yantai, Summitopia in Tianjin, Ocean One in Shanghai and Cloud Vision in Shanghai have received enthusiastic response and strong recognition from the market since their launches. Notably, Ocean Times in Shanghai was the Group’s largest sales contributor. Investment Properties During the six months ended 30 June 2026, the Group had a number of completed commercial projects in seven cities of major development, namely Shanghai, Beijing, Tianjin, Chongqing, Shenyang, Xi’an and Shenzhen. The investment properties held by the Group had a total G.F.A. of approximately 1,324,000 sq.m. During the period, the overall rental income of the Group increased by 14.6% year-on-year to HK$417,929,000 (six months ended 30 June 2025: HK$364,827,000). In line with its strategy of focusing on both leasing and sales, the Group continued to deepen its presence in residential leasing, with its long-term rental brand “U CHANGE” having established a solid market position. The three major communities — U CHANGE • Hui community, U CHANGE • Xin community and U CHANGE • Neo community — collectively provide 5,500 units of high-quality properties to the market, serving nearly 10,000 tenants with consistently industry-leading occupancy rates, firmly establishing it among the top brands for affordable rental housing in Shanghai. Furthermore, the Group has expanded its business footprint to Hong Kong, establishing its presence through the operation of student hostel. This expansion will help to optimise the Group’s geographical footprint, broaden its revenue base and strengthen its competitive position in the region.
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– 16 – FINANCIAL REVIEW Revenue During the six months ended 30 June 2026, the Group’s revenue decreased by 30.4% year-on-year to HK$1,271,704,000 (six months ended 30 June 2025: HK$1,827,835,000), mainly due to lower sales delivered by a number of projects compared with the same period last year. During the period, property sales remained as the Group’s main source of revenue and amounted to HK$737,860,000 (six months ended 30 June 2025: HK$1,336,687,000), accounting for 58.0% (six months ended 30 June 2025: 73.1%) of the Group’s total revenue. Revenue contributions from Ocean Times in Shanghai, Ocean One in Shanghai, Summitopia in Tianjin and Felicity Mansion in Yantai accounted for 45.0%, 24.3%, 13.8% and 10.0% of property sales revenue, respectively. Revenue from leasing, property management and hotel operations continued to provide stable revenue sources for the Group, contributing HK$417,929,000, HK$9,929,000 and HK$105,986,000 (six months ended 30 June 2025: HK$364,827,000, HK$6,793,000 and HK$119,528,000) respectively and accounting for 32.9%, 0.8% and 8.3% (six months ended 30 June 2025: 20.0%, 0.4% and 6.5%) of the total revenue, respectively. Gross Profit and Gross Profit Margin For the six months ended 30 June 2026, the Group’s gross profit amounted to HK$339,742,000, representing an increase of 25.9% as compared to that of the same period in 2025. The gross profit margin was 26.7%, an increase of 11.9 percentage points from the same period in 2025. This was mainly attributable to a higher proportion of high-margin projects delivered during the period compared with the same period last year. Investment Property Revaluation For the six months ended 30 June 2026, the Group recorded a net loss on the revaluation of investment properties of approximately HK$60,480,000 (six months ended 30 June 2025: loss of HK$151,069,000), primarily attributable to a slight decline in the fair value of several investment properties. Distribution and Selling Expenses For the six months ended 30 June 2026, the Group’s distribution and selling expenses increased by 93.4% year-on-year to HK$196,565,000 (six months ended 30 June 2025: HK$101,616,000), which was mainly attributable to enhanced sales promotion during the period.
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– 17 – General and Administrative Expenses For the six months ended 30 June 2026, the Group’s general and administrative expenses decreased by 4.0% year-on-year to HK$189,690,000 (six months ended 30 June 2025: HK$197,546,000). This was mainly attributable to the continual stringent implementation of effective cost control measures during the period. Other Expenses, Gains and Losses, Net For the six months ended 30 June 2026, the Group recorded a net loss of approximately HK$30,260,000 in other expenses, gains and losses (six months ended 30 June 2025: net loss of HK$63,501,000) primarily due to the goodwill impairment of a subsidiary. Loss for the Period During the six months ended 30 June 2026, the Group recorded a loss of HK$489,086,000 (six months ended 30 June 2025: loss of HK$562,427,000), mainly attributable to a decrease in sales from several projects. The loss attributable to owners of the Company amounted to approximately HK$414,448,000 (six months ended 30 June 2025: loss of HK$492,139,000), and the basic losses per share amounted to 8.67 HK cents (six months ended 30 June 2025: losses of 10.29 HK cents). Liquidity and Capital Resources The Group manages its capital to ensure that entities within the Group will be able to operate on a going concern while maximising the return to shareholders through optimisation of the debt and equity balance. The Group’s overall strategy remains unchanged from prior year. The capital structure of the Group consists of net debt, which includes bank and other borrowings, cash and cash equivalents, and equity attributable to owners of the Company (comprising issued share capital and reserves). As at 30 June 2026, bank balances and cash of the Group were HK$4,455,544,000 (31 December 2025: HK$4,571,721,000). The net debt to total equity of the Group (net debt (total bank and other borrowings less bank balances and cash and restricted and pledged bank deposits) to total equity) increased from 77.8% as at the end of last year to 96.8%, primarily due to the successful bidding of a land parcel during the period. Current ratio was 1.9 times (as at 31 December 2025: 1.3 times). As at 30 June 2026, the total borrowings of the Group, including bank borrowings, other borrowings, advanced bonds, medium term notes and domestic corporate bonds, amounted to approximately HK$23,002,267,000 (31 December 2025: HK$19,357,881,000), which included the short-term borrowings from a subsidiary of Shanghai Industrial Holdings Limited of RMB360,000,000 (31 December 2025: RMB600,000,000). The Group will continue to optimise the RMB-denominated and HKD-denominated borrowings based on its business needs.
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– 18 – The Group maintained sufficient cash balance. The management believes that the Group’s financial resources and future revenue will be sufficient to support the current working capital requirements and future expansion of the Group. Foreign Exchange Risks During the period, most of the Group’s revenue and operating costs were denominated in Renminbi. Except for the bank deposits and loans denominated in foreign currencies, the Group’s operating cash flow or liquidity is not directly subject to any other material exchange rate fluctuations. The Group did not enter into any foreign exchange hedging arrangements to control its exposure to exchange rate fluctuations as at 3 0 June 2026. However, the Group will adopt necessary measures whenever appropriate to minimize the impact arising from exchange rate fluctuations. HUMAN RESOURCES AND REMUNERATION POLICIES As at 30 June 2026, the Group employed 685 employees (including Hong Kong and PRC offices). The remuneration policies for the employees of the Group are determined according to the performance, qualification, experience and competence of the employees. The emoluments of the directors of the Company (the “ Directors”) are determined by the remuneration committee of the Company, having regard to the operating results of the Group, individual performance and comparable market statistics. Staff benefits include discretionary bonus payments which are linked to the profitability of the Group and individual performances and contributions to the Mandatory Provident Fund Schemes. During the six months ended 30 June 2026, the Group provided training programs relating to work to employees. Activities aiming at building up team spirit were regularly organised for employees, so as to enhance the human capital of the Group and the sense of belonging of the staff. OUTLOOK Looking ahead to the second half of 2026, stabilising the property market will remain the core direction of macroeconomic policy, whilst economic efforts will continue to centre on expanding domestic demand. The property sector not only meets people’s housing needs but also bridges the investment and consumption sectors; its stable development provides fundamental support for the overall functioning of the economy. With the full implementation of the “15th Five-Year Plan for Urban Renewal”, the sector has officially entered an era of quality enhancement in the existing assets. Although the market is currently still bottoming out and the pattern of polarisation remains unchanged, with policies continuing to provide support on both the supply and demand sides, and key initiatives such as the construction of “good housing”, urban renewal and the revitalisation of existing assets progressing in an orderly manner, market confidence is expected to rise gradually, paving the way for a more stable and healthy development landscape.
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– 19 – At the age of thirty, SIUD will capitalise on its solid foundation to comprehensively accelerate the pace of its transformation. The Group will maintain Shanghai as its primary base for development whilst expanding in an orderly manner into other core first- and second-tier cities. Aligning closely with national policy directions and guided by the “3+4+4” standard for good communities, the Group will continue to deepen its involvement in urban renewal, refine and optimise its residential leasing business, and also drive the development of high-quality property projects, striving to create a high-quality lifestyle characterised by “good housing” for residents. Furthermore, the Group will steadily foster its transformation towards asset securitisation, focusing on strengthening its capital operation capabilities, enhancing capital efficiency, optimising its debt structure and unlocking asset value. This will ensure the improvement in the quality and efficiency of state-owned assets, thereby laying a foundation for long-term, stable returns for shareholders. INTERIM DIVIDEND Taking into account the future plans, the financial position and cash flow position of the Company, the Board does not recommend the payment of any interim dividend for the six months ended 30 June 2026 (for the six months ended 30 June 2025: Nil). SHARE CAPITAL The Company’s issued and fully paid share capital as at 30 June 2026 amounted to HK$191,216,607.56 divided into 4,780,415,189 ordinary shares of HK$0.04 each. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities during the six months ended 30 June 2026. PRE-EMPTIVE RIGHTS There are no provisions for pre-emptive rights under the Company’s Bye-laws, or the laws of Bermuda, which would oblige the Company to offer new shares on a pro-rata basis to the existing shareholders of the Company (the “ Shareholders ”). CORPORATE GOVERNANCE During the six months ended 30 June 2026, the Company has complied with the code provisions as set out in the Corporate Governance Code contained in Appendix C1 to the Rules Governing the Listing of Securities (the “ Listing Rules ”) on The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”).
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– 20 – MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted its own code of conduct regarding dealings in the securities of the Company by the Directors and the relevant employees (who are likely to be in possession of inside information relating to the Company or its securities) (the “Guidelines for Securities Transactions by Relevant Employees ”) on terms no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”) as set out in Appendix C3 to the Listing Rules. All Directors have confirmed, following specific enquiry by the Company, that they have complied with the required standards as set out in the Model Code and its code of conduct regarding directors’ securities transactions throughout the six months ended 30 June 2026. In addition, no incident of non-compliance of the Guidelines for Securities Transactions by Relevant Employees by the relevant employees of the Group was noted by the Company throughout the six months ended 30 June 2026. AUDIT COMMITTEE AND REVIEW OF INTERIM RESULTS The audit committee of the Company (the “ Audit Committee ”) currently consists of three independent non-executive Directors, namely Mr. Li Ka Fai, David, M.H. (Committee Chairman), Mr. Doo Wai-Hoi, William, B.B.S., J.P. and Dr. Fan Ren Da, Anthony. The Audit Committee is primarily responsible for reviewing the accounting principles and practices adopted by the Group; reviewing the financial reporting process, risk management and internal controls system of the Group; and reviewing the independence and objectivity of the external auditor, the scope of audit services and related audit fees payable to the external auditor. During the six months ended 30 June 2026, the Audit Committee has reviewed the independence and objectivity of the external auditor, the scope of audit services and related audit fees payable to the external auditor for the Board’s approval. The Audit Committee has also reviewed the unaudited interim financial statements of the Group for the six months ended 30 June 2026 and discussed with the management and the auditor of the Company on the accounting principles and practices adopted by the Group, risk management and internal controls matter, final results and financial statements and the terms of reference for the Audit Committee. The Group’s external auditor, Ernst & Young, has reviewed the Company’s unaudited condensed consolidated financial statements for the six months ended 30 June 2026 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.
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– 21 – PUBLICATION OF INTERIM RESULTS AND INTERIM REPORT ON THE WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY This results announcement is published on the websites of the Stock Exchange (www.hkex.com.hk) and the Company (www.siud.com). The interim report of the Company for the six months ended 30 June 2026 containing all the applicable information required by the Listing Rules will be despatched to the Shareholders as well as published on the above websites in due course. APPRECIATION I would like to express my sincere gratitude to the Board, our management and all our staff for their dedicated efforts as well as to our customers, suppliers, business partners and Shareholders for their continued enthusiastic support to our Group. By order of the Board of Shanghai Industrial Urban Development Group Limited Huang Haiping Chairman Hong Kong, 26 August 2026 As at the date of this announcement, the Board comprises Mr. Huang Haiping, Mr. Li Zhonghui and Ms. Zhou Yadong as executive Directors and Mr. Doo Wai-Hoi, William, B.B.S., J.P. , Dr. Fan Ren Da, Anthony, Mr. Li Ka Fai, David, M.H. and Dr. Chan Ho Wah, Terence as independent non-executive Directors.