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. Shangri-La Asia Limited (Incorporated in Bermuda with limited liability) website: www.ir.shangri-la.com (Stock code: 00069) 2026 INTERIM RESULTS ANNOUNCEMENT The board of directors ( “Board”) of Shangri-La Asia Limited ( “Company ”) wishes to announce the unaudited interim results of the Company and its subsidiaries ( “Group”), and associates for the six months ended 30 June 2026. These results have been reviewed by the Company ’s auditor, PricewaterhouseCoopers, in accordance with the Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity ” and by the audit & risk committee of the Board. The review report of the auditor will be included in the interim report sent to the shareholders of the Company. For the six months ended 30 June 2026, consolidated profit attributable to owners of the Company before non-operating items was USD88.9 million, an increase of 74.7% or USD38.0 million, compared to USD50.9 million for the same period last year. Consolidated profit attributable to owners of the Company after accounting for non-operating items was USD89.0 million, an increase of 53.7% or USD31.1 million, compared to USD57.9 million for the same period last year. The Board has declared an interim dividend of HK5 cents (2025: HK5 cents) per ordinary share for 2026 payable on Friday, 9 October 2026, to shareholders whose names appear on the registers of members of the Company on Monday, 28 September 2026. The following table summarises the highlights of our financial results: Six months ended 30 June 2026 USD million 2025 USD million % change Consolidated revenue 1,124.0 1,056.1 6.4% Effective share of revenue (Note 1) of the Company, subsidiaries and associates 1,323.8 1,262.5 4.9% EBITDA (Note 2) of the Company and its subsidiaries 289.5 251.5 15.1% Effective share of EBITDA (Note 3) of the Company, subsidiaries and associates 404.9 369.5 9.6% Consolidated profit attributable to owners of the Company: – Operating items 88.9 50.9 74.7% – Non-operating items 0.1 7.0 -98.6% Total 89.0 57.9 53.7% Earnings per share (US cents per share) 2.50 1.63 53.4%
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2 As at 30 June 2026 31 December 2025 USD million USD million % change Net assets attributable to owners of the Company 5,358.9 5,324.4 0.6% Net assets per share attributable to owners of the Company (USD) 1.51 1.50 0.7% Notes: 1. Effective share of revenue is the aggregate total of the Company ’s revenue and the Group ’s share of revenue of subsidiaries and associates based on percentage of equity interests. 2. EBITDA, which is a non-HKFRS financial measure used to measure the Group ’s operating profitability, is defined as the earnings before finance costs, tax, depreciation and amortisation, gains/losses on disposal of fixed assets and non-operating items such as gains/losses on disposal of interest in investee companies; fair value gains/losses on investment properties and financial assets; and net impairment losses on fixed assets. 3. Effective share of EBITDA is the aggregate total of the Company ’s EBITDA and the Group ’s share of EBITDA of subsidiaries and associates based on percentage of equity interests. • Consolidated revenue for the six months ended 30 June 2026 was USD1,124.0 million, an increase of 6.4%, compared to USD1,056.1 million for the six months ended 30 June 2025. The increase was mainly due to increase in both consolidated revenue from Hotel Operations and Investment Properties on a year-on-year basis. • Effective share of revenue of the Company, subsidiaries and associates for the six months ended 30 June 2026 was USD1,323.8 million, an increase of 4.9%, compared to USD1,262.5 million for the six months ended 30 June 2025. The effective share of revenue increase was mainly driven by increased effective share of revenue from Hotel Operations. • Effective share of EBITDA of the Company, subsidiaries and associates for the six months ended 30 June 2026 was USD404.9 million, an increase of 9.6%, compared to USD369.5 million for the six months ended 30 June 2025. The effective share of EBITDA margin of the Company, subsidiaries and associates for the six months ended 30 June 2026 was 30.6%, increased by 1.3 percentage points compared to 29.3% for the same period last year. The increase in effective share of EBITDA and margin expansion was mainly driven by improved operating efficiency and effective share of revenue growth. • Consolidated profit attributable to owners of the Company before non-operating items was USD88.9 million for the six months ended 30 June 2026, an increase of 74.7%, compared to USD50.9 million for the six months ended 30 June 2025. This increase was mainly driven by increase in the effective share of EBITDA, savings in net interest expenses on a year-on-year basis, and foreign exchange gains in the period of 2026 compared to foreign exchange losses in the same period of 2025. • All in all, consolidated profit attributable to owners of the Company was USD89.0 million for the six months ended 30 June 2026, an increase of 53.7%, compared to USD57.9 million for the six months ended 30 June 2025 with lower net gains from non-operating items on a year-on-year basis. Such decrease in net gains from non-operating items was mainly due to effective share of net fair value losses from investment properties in the period of 2026 compared to effective share of net fair value gains in the same period of 2025 and impairment loss on a hotel property, but partially offset by fair value gains from financial instruments in the period of 2026 compared to fair value losses in the same period of 2025.
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3 CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (All amounts in US dollar thousands) As at 30 June 2026 31 December 2025 Note Unaudited Audited ASSETS Non-current assets Property, plant and equipment 3,732,903 3,788,656 Investment properties 1,828,786 1,827,112 Right-of-use assets 1,175,724 1,180,894 Intangible assets 101,610 102,367 Interest in associates 4,777,098 4,545,301 Deferred income tax assets 54,434 62,477 Financial assets at fair value through other comprehensive income 2,412 2,412 Financial assets at fair value through profit or loss 10,532 10,233 Derivative financial instruments – 2,092 Other receivables 9,524 9,734 11,693,023 11,531,278 Current assets Inventories 26,755 27,847 Properties for sale 47,818 49,012 Accounts receivable, prepayments and deposits 4 205,500 202,303 Amounts due from associates 93,891 56,908 Derivative financial instruments 11,645 15,251 Financial assets at fair value through profit or loss 12,013 13,748 Bank deposits with original maturities over 3 months 1,463,193 288,953 Cash and cash equivalents 1,263,753 2,241,234 3,124,568 2,895,256 Total assets 14,817,591 14,426,534
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4 As at 30 June 2026 31 December 2025 Note Unaudited Audited EQUITY Capital and reserves attributable to owners of the Company Share capital and premium 5 3,204,924 3,201,995 Shares held for share award schemes 5 (12,992) (10,180) Other reserves 350,703 366,765 Retained earnings 1,816,223 1,765,849 5,358,858 5,324,429 Non-controlling interests 276,289 275,666 Total equity 5,635,147 5,600,095 LIABILITIES Non-current liabilities Bank loans 4,657,566 4,508,410 Fixed rate bonds 1,892,945 1,683,047 Derivative financial instruments 15,302 10,721 Long-term lease liabilities 690,499 689,044 Loan from a non-controlling shareholder 38,452 38,452 Deferred income tax liabilities 333,277 337,164 7,628,041 7,266,838 Current liabilities Accounts payable and accruals 7 537,045 605,840 Contract liabilities 125,214 120,160 Short-term lease liabilities 64,228 64,207 Amounts due to non-controlling shareholders 80,292 53,337 Current income tax liabilities 28,186 22,448 Bank loans 410,013 664,682 Fixed rate bonds 274,087 – Derivative financial instruments 35,338 28,927 1,554,403 1,559,601 Total liabilities 9,182,444 8,826,439 Total equity and liabilities 14,817,591 14,426,534
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5 CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS (All amounts in US dollar thousands unless otherwise stated) Six months ended 30 June 2026 2025 Note Unaudited Unaudited Revenue 3 1,123,962 1,056,063 Cost of sales 8 (485,136) (466,243) Gross profit 638,826 589,820 Other gains – net 9 55,681 35,872 Marketing costs 8 (42,164) (40,798) Administrative expenses 8 (143,290) (142,093) Other operating expenses 8 (294,971) (281,032) Operating profit 214,082 161,769 Finance costs – net – Interest expense 10 (152,305) (149,212) – Foreign exchange gains/(losses) 10 3,656 (6,889) Share of profit of associates 11 83,312 99,057 Profit before income tax 148,745 104,725 Income tax expense 12 (47,477) (40,956) Profit for the period 101,268 63,769 Profit attributable to: Owners of the Company 88,982 57,914 Non-controlling interests 12,286 5,855 101,268 63,769 Earnings per share for profit attributable to owners of the Company during the period (expressed in US cents per share) – basic 13 2.50 1.63 – diluted 13 2.48 1.62
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6 CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (All amounts in US dollar thousands) Six months ended 30 June 2026 2025 Unaudited Unaudited Profit for the period 101,268 63,769 Other comprehensive income/(loss): Item that will not be reclassified subsequently to profit or loss Effect of hyperinflation 7,324 4,121 Items that may be reclassified subsequently to profit or loss Fair value changes of interest rate swap and cross-currency swap contracts – hedging (2,852) (19,349) Fair value gains of interest rate swap contract reclassified to profit or loss (13,725) – Currency translation differences – subsidiaries (136,422) 45,285 Currency translation differences – associates 128,478 38,872 Other comprehensive (loss)/income for the period (17,197) 68,929 Total comprehensive income for the period 84,071 132,698 Total comprehensive income attributable to: Owners of the Company 76,368 118,917 Non-controlling interests 7,703 13,781 84,071 132,698
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7 CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (All amounts in US dollar thousands) Unaudited Attributable to owners of the Company Share capital and premium Shares held for share award schemes Other reserves Retained earnings Total Non- controlling interests Total equity (Note 5) (Note 5) At 1 January 2026 3,201,995 (10,180) 366,765 1,765,849 5,324,429 275,666 5,600,095 Fair value changes of interest rate swap and cross-currency swap contracts – hedging – – (2,852) – (2,852) – (2,852) Fair value gains of interest rate swap contract reclassified to profit or loss – – (13,725) – (13,725) – (13,725) Currency translation differences – – (3,361) – (3,361) (4,583) (7,944) Effect of hyperinflation – – – 7,324 7,324 – 7,324 Other comprehensive (loss)/income for the period recognised directly in equity – – (19,938) 7,324 (12,614) (4,583) (17,197) Profit for the period – – – 88,982 88,982 12,286 101,268 Total comprehensive (loss)/income for the period – – (19,938) 96,306 76,368 7,703 84,071 Shares issued for share award schemes 2,929 (2,929) – – – – – Share-based compensation under share award schemes – – 3,997 – 3,997 – 3,997 Vesting of shares under share award schemes – 117 (121) 4 – – – Payment of 2025 final dividend – – – (45,936) (45,936) – (45,936) Dividend paid and payable to non-controlling shareholders – – – – – (7,118) (7,118) Injection of equity loans from non-controlling shareholders – – – – – 38 38 2,929 (2,812) 3,876 (45,932) (41,939) (7,080) (49,019) At 30 June 2026 3,204,924 (12,992) 350,703 1,816,223 5,358,858 276,289 5,635,147
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8 Unaudited Attributable to owners of the Company Share capital and premium Shares held for share award schemes Other reserves Retained earnings Total Non- controlling interests Total equity (Note 5) (Note 5) At 1 January 2025 3,201,995 (13,595) 279,984 1,715,142 5,183,526 253,644 5,437,170 Fair value changes of interest rate swap and cross-currency swap contracts – hedging – – (19,349) – (19,349) – (19,349) Currency translation differences – – 76,231 – 76,231 7,926 84,157 Effect of hyperinflation – – – 4,121 4,121 – 4,121 Other comprehensive income for the period recognised directly in equity – – 56,882 4,121 61,003 7,926 68,929 Profit for the period – – – 57,914 57,914 5,855 63,769 Total comprehensive income for the period – – 56,882 62,035 118,917 13,781 132,698 Shares purchased for share award schemes – (5,607) – – (5,607) – (5,607) Share-based compensation under share award schemes – – 5,086 – 5,086 – 5,086 Vesting of shares under share award schemes – 2,194 (2,401) 207 – – – Payment of 2024 final dividend – – – (45,802) (45,802) – (45,802) Dividend paid and payable to non-controlling shareholders – – – – – (4,110) (4,110) Injection of equity loans from non-controlling shareholders – – – – – 36 36 – (3,413) 2,685 (45,595) (46,323) (4,074) (50,397) At 30 June 2025 3,201,995 (17,008) 339,551 1,731,582 5,256,120 263,351 5,519,471
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9 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (All amounts in US dollar thousands unless otherwise stated) 1. General information The principal activities of the Group are the development, ownership and operation of hotel properties, the provision of hotel management and related services, the development, ownership and operation of investment properties and property development for sale. The Company is a limited liability company incorporated in Bermuda. The address of its registered office is Victoria Place, 5/F, 31 Victoria Street, Hamilton HM10, Bermuda. The Company has its primary listing on the Main Board of The Stock Exchange of Hong Kong Limited with secondary listing on the Singapore Exchange Securities Trading Limited. These condensed consolidated interim financial statements were approved by the Board for issue on 27 August 2026. These condensed consolidated interim financial statements have been reviewed by the Company ’s auditor in accordance with the Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity ”. 2. Basis of preparation and material accounting policies These unaudited condensed consolidated interim financial statements for the six months ended 30 June 2026 have been prepared in accordance with Hong Kong Accounting Standard ( “HKAS”) 34 “Interim Financial Reporting ” as issued by the Hong Kong Institute of Certified Public Accountants ( “HKICPA ”). The financial statements have been prepared under the historical cost convention except that certain financial assets, financial liabilities (including derivative financial instruments) and investment properties are stated at fair value. These condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with HKFRS Accounting Standards (collectively including Hong Kong Financial Reporting Standards ( “HKFRSs ”), HKASs and interpretations). The accounting policies and methods of computation used in the preparation of these condensed consolidated interim financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2025, except for the adoption of the following amendments to accounting standards which are relevant to the Group ’s operation and are mandatory for the financial year ending 31 December 2026: HKFRS 9 and HKFRS 7 (Amendments) Classification and Measurement of Financial Instruments HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 (Amendments) Annual Improvements to HKFRS Accounting Standards – Volume 11 The adoption of these amendments to accounting standards did not have material impact to the Group ’s financial statements. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.
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10 3. Revenue and segment information The Group owns/leases and operates hotels and associated properties; and provides hotel management and related services. The Group also owns investment properties for property rentals and engages in property sales. Most of the associates are engaged in hotel ownership, property rentals and property sales and these revenues of the associates are not included in the consolidated revenue of the Group. Revenue recognised in the condensed consolidated interim financial statements during the period are as follows: Six months ended 30 June 2026 2025 Revenue Hotel properties Revenue from rooms 564,822 516,910 Food and beverage sales 379,057 361,017 Rendering of ancillary services 49,369 51,254 Hotel management and related services 48,664 45,893 Property development for sale 3,095 5,581 Other business 5,628 7,371 Revenue from contracts with customers 1,050,635 988,026 Investment properties 73,327 68,037 Total 1,123,962 1,056,063 The Group is managed on a worldwide basis in the following main segments: i. Hotel properties – development, ownership and operation of hotel properties (including hotels under lease) – The People ’s Republic of China – Hong Kong – Chinese Mainland – Singapore – Malaysia – The Philippines – Japan – Thailand – France – Australia – United Kingdom – Mongolia – Sri Lanka – Other countries (including Fiji, Myanmar, Maldives, Indonesia, Turkey and Mauritius)
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11 ii. Hotel management and related services for Group-owned hotels and for hotels owned by third parties iii. Investment properties – development, ownership and operation of office properties, commercial properties and serviced apartments/residences for rental purpose – Chinese Mainland – Singapore – Malaysia – Mongolia – Sri Lanka – Other countries (including Australia and Myanmar) iv. Property developments for sale – development and sale of real estate properties The Group is also engaged in other business including wines trading, amusement park, retail business and restaurant operation outside hotels. This other business does not have a material impact on the Group ’s results. The chief operating decision maker assesses the performance of the operating segments based on a measure of the share of profit or loss after tax and non-controlling interests. This measurement basis excludes the effects of land cost amortisation and project expenses, corporate expenses and other non-operating items such as fair value gains or losses on investment properties, fair value adjustments on monetary items and impairments for any isolated non-recurring event.
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12 Segment profit or loss For the six months ended 30 June 2026 and 2025 (USD million) 2026 2025 Revenue Profit/(Loss) after tax Revenue Profit/(Loss) after tax (Note (b)) (Note (a)) (Note (b)) (Note (a)) Hotel properties The People ’s Republic of China Hong Kong 181.4 22.1 158.4 16.4 Chinese Mainland 312.0 (13.7) 298.1 (8.7) Singapore 124.7 8.9 119.3 9.7 Malaysia 60.1 3.2 54.3 3.8 The Philippines 87.4 10.3 83.3 12.4 Japan 31.6 5.0 30.9 5.2 Thailand 32.3 5.3 31.3 4.8 France 31.4 1.3 31.3 1.9 Australia 51.3 0.4 42.4 (0.4) United Kingdom 27.0 (5.8) 28.0 (8.8) Mongolia 9.6 – 9.6 (0.8) Sri Lanka 21.0 6.8 19.5 1.9 Other countries 23.5 2.0 22.8 – 993.3 45.8 929.2 37.4 Hotel management and related services 133.2 21.4 122.6 16.0 Sub-total 1,126.5 67.2 1,051.8 53.4 Investment properties Chinese Mainland 18.4 81.6 17.2 82.9 Singapore 8.6 6.4 7.6 6.1 Malaysia 2.5 0.4 2.4 0.3 Mongolia 21.1 7.9 19.6 6.4 Sri Lanka 15.2 7.3 13.8 7.1 Other countries 7.6 1.3 7.4 1.5 73.4 104.9 68.0 104.3 Property development for sale 3.1 1.3 5.6 1.3 Other business 5.6 (2.3) 7.4 (2.6) Total 1,208.6 171.1 1,132.8 156.4 Less: Hotel management and related services – Inter-segment revenue (84.6) (76.7) Total external revenue 1,124.0 1,056.1 Corporate finance costs (net of interest income) (76.3) (81.6) Land cost amortisation and project expenses (0.5) (3.4) Corporate expenses (12.1) (11.6) Exchange gains/(losses) of corporate investment holding companies 6.7 (8.9) Profit before non-operating items 88.9 50.9
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13 2026 2025 Profit/(Loss) after tax Profit/(Loss) after tax (Note (a)) (Note (a)) Profit before non-operating items 88.9 50.9 Non-operating items Share of net fair value (losses)/gains on investment properties (3.9) 10.7 Unrealised (losses)/gains on financial assets at fair value through profit or loss (1.0) 2.8 Impairment loss on a hotel property (5.4) – Fair value gains/(losses) on interest rate swap and cross-currency swap contracts – non-hedging 10.4 (7.5) Fair value adjustments on security deposits on leased premises 0.1 0.1 Loss on disposal of an associate (0.1) – Insurance claims recovered from property damage – 0.9 Total non-operating items 0.1 7.0 Consolidated profit attributable to owners of the Company 89.0 57.9 Notes: (a) Profit/(Loss) after tax includes net of tax results from associates and the Company and its subsidiaries after share of non-controlling interests. (b) Revenue excludes revenue of associates. 4. Accounts receivable, prepayments and deposits As at 30 June 2026 31 December 2025 Trade receivables 84,215 88,371 Less: Provision for impairment of receivables (9,726) (11,347) Trade receivables – net (Note (b)) 74,489 77,024 Other receivables 59,841 55,807 Prepayments and other deposits 71,170 69,472 205,500 202,303 There is no concentration of credit risk with respect to trade receivables, as the Group has a large number of customers, internationally dispersed. The maximum exposure to credit risk at the end of the reporting period is the carrying value of each class of receivables mentioned above.
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14 Notes: (a) The fair values of the trade and other receivables are not materially different from their carrying values. (b) A significant part of the Group ’s sales are by credit cards or against payment of deposits. The remaining amounts are with general credit term of 30 days. The Group has a defined credit policy. The ageing analysis of the trade receivables based on invoice date after provision for impairment is as follows: As at 30 June 2026 31 December 2025 0 – 3 months 66,429 67,323 4 – 6 months 5,392 5,491 Over 6 months 2,668 4,210 74,489 77,024 5. Share capital and premium and shares held for share award schemes Amount Number of shares Share capital Share premium Total (’000) Share capital and premium Authorised – Ordinary shares of HKD1 each At 1 January 2025, 31 December 2025 and 30 June 2026 5,000,000 646,496 – 646,496 Issued and fully paid – Ordinary shares of HKD1 each At 1 January 2025 and 31 December 2025 3,585,525 462,904 2,739,091 3,201,995 Shares issued for share award schemes 5,591 721 2,208 2,929 At 30 June 2026 3,591,116 463,625 2,741,299 3,204,924 Shares held for share award schemes At 1 January 2025 (18,528) (2,390) (11,205) (13,595) Shares purchased for share award schemes (10,000) (1,290) (4,317) (5,607) Vesting of shares under share award schemes 3,196 412 1,782 2,194 At 30 June 2025 (25,332) (3,268) (13,740) (17,008) Vesting of shares under share award schemes 10,177 1,313 5,515 6,828 At 31 December 2025 and 1 January 2026 (15,155) (1,955) (8,225) (10,180) Shares issued for share award schemes (5,591) (721) (2,208) (2,929) Vesting of shares under share award schemes 174 23 94 117 At 30 June 2026 (20,572) (2,653) (10,339) (12,992) As at 30 June 2026, except for shares held for share award schemes as shown above, 10,501,055 (31 December 2025: 10,501,055) ordinary shares in the Company were held by a subsidiary which was acquired in late 1999. The cost of these shares was recognised in equity in prior years.
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15 Share awards The shareholders of the Company approved the adoption of its 2025 Share Scheme, which included new share reward and options scheme, on 12 June 2025. During the six months ended 30 June 2026, the share award schemes of the Group issued 5,591,100 ordinary shares in the Company and 174,300 shares were transferred to the awardees upon vesting of the awarded shares. The remaining 20,571,900 shares were held in trust under the share award schemes as at 30 June 2026. Details of the share award schemes were disclosed in Note 6 to the condensed consolidated interim financial statements. Share options During the six months ended 30 June 2026, no share options were granted, vested, exercised, lapsed or cancelled. 6. Share Award Schemes The Group operates the share award schemes as part of the benefits for its employees and the Company ’s directors which allows shares of the Company to be granted to the awardees. The awarded shares are either newly issued by the Company or purchased on the open market and held in trust before vesting. Most of the awarded shares vest progressively over the vesting period after the awards are granted and the ultimate number of shares being vested is conditional upon the passage of time and/or is conditional on the satisfaction of performance conditions set by the management of the Group. The fair values of the awarded shares granted are based on the quoted market price of the Company on the grant dates which are amortised over the relevant vesting periods. During the six months ended 30 June 2026, a total of 174,300 shares were vested to the qualified awardees. There were no shares granted to the qualified awardees during the period. A total of 20,571,900 shares were held in trust under the share award schemes as at 30 June 2026. During the period, an expense of USD3,997,000 (2025: USD5,086,000) for the award shares granted was charged to the condensed consolidated interim statement of profit or loss.
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16 Details of the awarded shares granted and vested during 2026 and 2025 are as follows: Number of awarded shares vested Grant date Fair value per share Number of awarded shares granted Before 2025 For the year ended 31 December 2025 For the six months ended 30 June 2026 Vesting period In year 2022 6 May 2022 HKD5.85 12,458,000 6,754,000 2,879,000 – 6 May 2022 to 6 May 2025 Total for 2022 12,458,000 In year 2023 17 Jul 2023 HKD6.37 18,930,100 5,534,300 5,290,200 – 17 Jul 2023 to 17 Jul 2026 Total for 2023 18,930,100 In year 2024 2 Jan 2024 HKD5.36 522,900 – 174,300 174,300 2 Jan 2024 to 1 Jan 2027 5 Jul 2024 HKD5.49 15,390,300 – 5,029,100 – 5 Jul 2024 to 5 Jul 2027 2 Oct 2024 HKD5.64 247,700 – – – 2 Oct 2024 to 20 Feb 2027 Total for 2024 16,160,900 In year 2025 7 Jul 2025 HKD4.53 18,753,200 – – – 7 Jul 2025 to 7 Jul 2028 12 Dec 2025 HKD4.68 621,900 – – – 12 Dec 2025 to 7 Jul 2028 Total for 2025 19,375,100 Grand Total 66,924,100 12,288,300 13,372,600 174,300 Further details of the share award schemes are set out under the sections headed “2012 Share Award Scheme ” and “2025 Share Scheme ” of the Company ’s 2025 annual report.
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17 7. Accounts payable and accruals As at 30 June 2026 31 December 2025 Trade payables 56,486 83,116 Other payables and accrued expenses 480,559 522,724 537,045 605,840 The ageing analysis of the trade payables based on invoice date is as follows: As at 30 June 2026 31 December 2025 0 – 3 months 53,345 80,668 4 – 6 months 560 1,088 Over 6 months 2,581 1,360 56,486 83,116 8. Expenses by nature Expenses included in cost of sales, marketing costs, administrative expenses and other operating expenses are analysed as follows: Six months ended 30 June 2026 2025 Depreciation of property, plant and equipment 91,956 98,789 Amortisation of trademark, and website and system development 1,359 2,943 Depreciation of right-of-use assets 29,806 22,162 Provision for impairment loss on property, plant and equipment 5,389 – Employee benefit expenses excluding directors ’ emoluments 411,655 391,716 Cost of sales of properties 968 2,032 Cost of inventories sold or consumed in operation 132,067 127,416 Loss on disposal of property, plant and equipment and investment properties 1,197 709 Pre-opening expenses – 2,023 9. Other gains – net Six months ended 30 June 2026 2025 (Losses)/gains on short-term investments (869) 3,712 Fair value gains/(losses) on club debentures 299 (628) Fair value gains/(losses) on interest rate swap and cross-currency swap contracts 6,266 (12,406) Fair value gains on investment properties 6,198 5,864 Interest income 42,493 37,389 Dividend income from listed shares 596 593 Gain on sale of investment properties 789 424 Insurance claims recovered from property damage – 924 Loss on disposal of an associate (91) – 55,681 35,872
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18 10. Finance costs – net Six months ended 30 June 2026 2025 Interest expense on: – bank loans 107,992 118,086 – fixed rate bonds 28,060 29,564 – other loans 1,352 999 – interest rate swap contracts (4,149) (12,965) – lease liabilities 19,050 13,770 152,305 149,454 Less: Amount capitalised – (242) 152,305 149,212 Foreign exchange (gains)/losses (3,656) 6,889 148,649 156,101 The effective capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 3.7% (2025: 4.0%) per annum. 11. Share of profit of associates Six months ended 30 June 2026 2025 Share of profit before tax of associates before share of net fair value changes of investment properties 123,661 124,023 Share of net fair value changes of investment properties (7,539) 11,802 Share of profit before tax of associates 116,122 135,825 Share of tax before provision for deferred tax on net fair value changes of investment properties (34,695) (33,799) Share of provision for deferred tax on net fair value changes of investment properties 1,885 (2,969) Share of associates ’ taxation (32,810) (36,768) Share of profit of associates 83,312 99,057
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19 12. Income tax expense Six months ended 30 June 2026 2025 Current income tax – Hong Kong profits tax 5,713 – – overseas profits tax 24,111 19,755 – withholding tax 9,292 5,589 Deferred income tax 8,361 15,612 47,477 40,956 (a) Hong Kong profits tax is provided at a rate of 16.5% (2025: 16.5%) on the estimated assessable profits of group companies operating in Hong Kong. (b) Taxation outside Hong Kong includes withholding tax paid and payable on dividends from subsidiaries and overseas profits tax provided at the prevailing rates on the estimated assessable profits of group companies operating outside Hong Kong. (c) Pillar Two Income Taxes: The Group is within the scope of the Organisation for Economic Co-operation and Development (“OECD”) Pillar Two model rules, and it applies the HKAS 12 exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes for the six months ended 30 June 2026. The Group will incur top-up taxes due to the Pillar Two legislation that became effective 1 January 2025. Under the legislation, the Group is liable to pay a top-up tax for the difference between its Global Anti-Base Erosion rules ( “GloBE”) effective tax rate in each jurisdiction and the 15% minimum rate. For the six months ended 30 June 2026, the Group has estimated that the effective tax rates exceed 15% or qualified transitional safe harbour relief in all jurisdictions in which it operates, except for Fiji where the Group has operations. Considering the impact of specific adjustments in the Pillar Two legislation, the Group recognised a current income tax expense of USD302,000 for the six months ended 30 June 2026. This is included in income tax in the condensed consolidated interim statement of profit or loss. 13. Earnings per share Basic Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares in issue during the period after adjustment of those issued ordinary shares of the Company held by a subsidiary and the share award schemes. Six months ended 30 June 2026 2025 Profit attributable to owners of the Company (USD ’000) 88,982 57,914 Weighted average number of ordinary shares in issue (thousands) 3,560,036 3,553,758 Basic earnings per share (US cents per share) 2.50 1.63
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20 Diluted Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has the potential dilutive effect on the non-vested awarded shares under the share award schemes for the six months ended 30 June 2026 and 2025. The dilution effect on the earnings per share is as follows: Six months ended 30 June 2026 2025 Profit attributable to owners of the Company (USD ’000) 88,982 57,914 Weighted average number of ordinary shares in issue (thousands) 3,560,036 3,553,758 Adjustments (thousands) 33,418 28,998 Weighted average number of ordinary shares for diluted earnings per share (thousands) 3,593,454 3,582,756 Diluted earnings per share (US cents per share) 2.48 1.62 14. Dividends Six months ended 30 June 2026 2025 Interim dividend of HK5 cents (2025: HK5 cents) per ordinary share 23,052 22,967 Notes: (a) At a meeting held on 26 March 2026, the Board proposed a final dividend of HK10 cents per ordinary share for the year ended 31 December 2025, which was paid on 15 June 2026, and has been reflected as a charge against retained earnings for the six months ended 30 June 2026. (b) At a meeting held on 27 August 2026, the Board declared an interim dividend of HK5 cents per ordinary share for the year ending 31 December 2026. This declared dividend is not reflected as a dividend payable in these financial statements but reflected as an appropriation of retained earnings for the year ending 31 December 2026. The declared interim dividend of USD23,052,000 for the six months ended 30 June 2026 is calculated based on 3,591,116,156 shares of the Company in issue as at 27 August 2026, after elimination on consolidation the amount of USD68,000 for the 10,501,055 ordinary shares in the Company held by a subsidiary of the Company and USD49,000 for 7,628,300 ordinary shares held by the Company ’s share award trust for the share award schemes.
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21 15. Financial guarantees, contingencies and charges over assets (a) Financial guarantees The Group executed proportionate guarantees in favour of banks for securing banking facilities granted to certain associates. The utilised amount of such facilities covered by the Group ’s guarantees for these associates amounted to USD38,012,000 (31 December 2025: USD129,949,000). Guarantees are stated at their respective contracted amounts. The Board is of the opinion that it is not probable that the above guarantees will be called upon. (b) Contingent liabilities As at 30 June 2026 and 31 December 2025, there were no material contingent liabilities. (c) Charges over assets As at 30 June 2026 and 31 December 2025, there were no charges over assets for borrowings. 16. Commitments The Group ’s commitments for capital expenditure at the end of the reporting period but not yet incurred are as follows: As at 30 June 2026 31 December 2025 Existing properties – property, plant and equipment and investment properties – contracted but not provided for 12,682 12,975 – authorised but not contracted for 23,171 21,054 Development projects – contracted but not provided for 1,105 1,160 – authorised but not contracted for 46,662 49,010 Total 83,620 84,199
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22 DISCUSSION AND ANALYSIS The principal activities of the Group remained the same as in 2025. The Group ’s business is organised into four main segments: • Hotel Properties – development, ownership and operation of hotel properties (including hotels under lease) • Hotel Management and Related Services for Group-owned hotels and for hotels owned by third parties • Investment Properties – development, ownership and operation of office properties, commercial properties and serviced apartments/residences for rental purpose • Property Development for Sale – development and sale of real estate properties The Group continues to develop hotel properties, investment properties for rental purposes, and properties for sale for the above-mentioned business segments. The Group currently owns and/or manages hotels under the following brands: • Shangri-La Hotels and Resorts • Shangri-La Signatures • Kerry Hotels • JEN by Shangri-La • Traders Hotels The following table summarises the hotels and rooms of the Group as at 30 June 2026: Brands Owned/Leased Managed Total Operating Hotels Hotels Under Development Hotels Rooms (in ’000) Hotels Rooms (in ’000) Hotels Rooms (in ’000) Owned/ Leased Hotels Hotels under Management Contracts 75 30.9 16 5.2 91 36.1 2 3 1 0.1 – – 1 0.1 – – 3 1.6 – – 3 1.6 – – 8 3.0 1 0.4 9 3.4 – 1 1 0.5 2 0.9 3 1.4 – 3 Total 88 36.1 19 6.5 107 42.6 2 7
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23 Notes: (1) Shangri-La Kunming (45% equity interest owned by the Group) in Chinese Mainland opened for business in April 2026. (2) Subsequent to 30 June 2026, JEN Hangzhou by Shangri-La (a management hotel owned by a third party) in Chinese Mainland opened for business in August 2026. The following table summarises the total Gross Floor Area ( “GFA”) of the operating investment properties for rental owned by subsidiaries and associates: Total GFA of the operating investment properties as at 30 June 2026 (in thousand square metres) Group’s equity interest Office spaces Commercial spaces Serviced apartments/ residences Chinese Mainland 20.0-100.0% 1,069.1 726.2 266.5 Malaysia 52.78% 45.2 8.5 17.4 Singapore 44.6-100.0% 3.3 22.9 24.7 Australia 100.0% 0.5 11.4 – Mongolia 51.0% 58.0 39.6 27.5 Myanmar 55.86-59.28% 37.6 11.8 56.8 Sri Lanka 90.0% 59.9 79.5 3.5 Total 1,273.6 899.9 396.4
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24 CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS The following table shows the Group ’s profit or loss for the six months ended 30 June 2026 and 2025 presented in both the conventional financial statement format and the effective share format, respectively. Amounts presented in the conventional financial statement format refer to the aggregate total of the Company and its subsidiaries on a 100% basis less non-controlling interests and add the share of profit of associates to arrive at the Group ’s final reported profit or loss attributable to owners of the Company. The alternative presentation of the Group ’s profit or loss at effective share is a non-HKFRS financial presentation format and the amounts presented at effective share represent the aggregate total of the Company and the Group ’s share of subsidiaries and associates based on percentage of equity interests. Profit or loss for the six months ended 30 June 2026 Profit or loss for the six months ended 30 June 2025 % change (USD million) Financial statement format Effective share Financial statement format Effective share Financial statement format Effective share Revenue 1,124.0 1,323.8 1,056.1 1,262.5 6.4% 4.9% Cost of sales (485.1) (540.2) (466.3) (525.0) -4.0% -2.9% Gross profit 638.9 783.6 589.8 737.5 8.3% 6.3% Operating expenses (350.9) (379.7) (339.3) (368.8) -3.4% -3.0% Other gains – Operating items 1.5 1.0 1.0 0.8 50.0% 25.0% EBITDA 289.5 404.9 251.5 369.5 15.1% 9.6% Depreciation and amortisation (123.1) (136.5) (123.9) (135.7) 0.6% -0.6% Loss on disposal of fixed assets (1.1) (0.9) (0.7) (0.7) -57.1% -28.6% Interest income 42.5 43.6 37.4 37.8 13.6% 15.3% Other expenses – Non-operating items (5.4) (5.4) – – N/M N/M Other gains/(losses) – Non-operating items 11.7 4.9 (2.5) 10.8 N/M -54.6% Operating profit 214.1 310.6 161.8 281.7 32.3% 10.3% Finance cost – net – Interest expense – Operating items (152.4) (147.1) (149.3) (143.0) -2.1% -2.9% – Non-operating items 0.1 0.1 0.1 0.1 0.0% 0.0% – Foreign exchange gains/(losses) – Operating items 3.7 4.0 (6.9) (7.0) N/M N/M Share of profit of associates 83.3 – 99.1 – -15.9% N/M Profit before income tax 148.8 167.6 104.8 131.8 42.0% 27.2% Income tax expense – Operating items (45.9) (79.0) (39.5) (69.9) -16.2% -13.0% – Non-operating items (1.6) 0.4 (1.5) (4.0) -6.7% N/M Profit for the period 101.3 89.0 63.8 57.9 58.8% 53.7% Less: Profit attributable to non-controlling interests (12.3) – (5.9) – -108.5% N/M Profit attributable to owners of the Company 89.0 89.0 57.9 57.9 53.7% 53.7% N/M: not meaningful
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25 FINANCIAL HIGHLIGHTS – Consolidated revenue for the six months ended 30 June 2026 was USD1,124.0 million, an increase of 6.4%, compared to USD1,056.1 million for the six months ended 30 June 2025. The increase was mainly due to increase in both consolidated revenue from Hotel Operations and Investment Properties on a year-on-year basis. – Effective share of revenue of the Company, subsidiaries and associates for the six months ended 30 June 2026 was USD1,323.8 million, an increase of 4.9%, compared to USD1,262.5 million for the six months ended 30 June 2025. The effective share of revenue increase was mainly driven by increased effective share of revenue from Hotel Operations. – Effective share of EBITDA of the Company, subsidiaries and associates for the six months ended 30 June 2026 was USD404.9 million, an increase of 9.6%, compared to USD369.5 million for the six months ended 30 June 2025. The effective share of EBITDA margin of the Company, subsidiaries and associates for the six months ended 30 June 2026 was 30.6%, increased by 1.3 percentage points, compared to 29.3% for the same period last year. The increase in effective share of EBITDA and margin expansion was mainly driven by improved operating efficiency and effective share of revenue growth. – Effective share of operating profit for the six months ended 30 June 2026 was USD310.6 million, an increase of 10.3%, compared to USD281.7 million for the same period in 2025. The increase was primarily due to higher effective share of EBITDA. – Effective share of profit before income tax was USD167.6 million for the six months ended 30 June 2026, an increase of 27.2%, compared to USD131.8 million for the corresponding period in 2025. The increase was mainly due to higher effective share of EBITDA, net interest expense savings and foreign exchange gains for the six months ended 30 June 2026, compared to foreign exchange losses for the same period last year. – All in all, consolidated profit attributable to owners of the Company was USD89.0 million for the six months ended 30 June 2026, an increase of 53.7%, compared to USD57.9 million for the six months ended 30 June 2025.
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26 RESULTS OF OPERATIONS Consolidated Revenue Details of the segment revenue information are provided in Note 3 to the condensed consolidated interim financial statements included in this interim results announcement. Six months ended 30 June (USD million) 2026 2025 % change Hotel Properties 993.3 929.2 6.9% Hotel Management and Related Services Gross revenue (including revenue earned from subsidiaries) 133.2 122.6 8.6% Less: Inter-segment revenue elimination with subsidiaries (84.6) (76.7) -10.3% Net amount after elimination 48.6 45.9 5.9% Sub-total Hotel Operations 1,041.9 975.1 6.9% Investment Properties 73.4 68.0 7.9% Property Development for Sale 3.1 5.6 -44.6% Other Business 5.6 7.4 -24.3% Consolidated Revenue 1,124.0 1,056.1 6.4% – Consolidated revenue for the six months ended 30 June 2026 was USD1,124.0 million, an increase of 6.4%, compared to USD1,056.1 million for the six months ended 30 June 2025. The increase was mainly due to increase in both consolidated revenue from Hotel Operations and Investment Properties on a year-on-year basis. – Consolidated revenue from our Hotel Operations increased to USD1,041.9 million for the six months ended 30 June 2026, an increase of 6.9%, compared to USD975.1 million for the six months ended 30 June 2025. The growth was mainly driven by continued improvements of the Group ’s hotels in Hong Kong, Chinese Mainland, Singapore, Malaysia and Australia. – Consolidated revenue from our Investment Properties increased by 7.9% to USD73.4 million for the six months ended 30 June 2026 from USD68.0 million for the same period of 2025. The growth was primarily driven by continued improvements of the Group ’s Investment Properties in Chinese Mainland, Mongolia and Sri Lanka.
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27 (i) Hotel Properties For the six months ended 30 June 2026, the increase in consolidated revenue from our Hotel Properties was mainly driven by revenue increase in Hong Kong, Chinese Mainland, Singapore, Malaysia and Australia, but partially offset by revenue decrease in United Kingdom compared to the same period in 2025. Please refer to the following table for geographical breakdown of consolidated revenue from Hotel Properties for the six months ended 30 June 2026 and 2025: Six months ended 30 June (USD million) 2026 2025 % change The People ’s Republic of China Hong Kong 181.4 158.4 14.5% Chinese Mainland 312.0 298.1 4.7% Singapore 124.7 119.3 4.5% Malaysia 60.1 54.3 10.7% The Philippines 87.4 83.3 4.9% Japan 31.6 30.9 2.3% Thailand 32.3 31.3 3.2% France 31.4 31.3 0.3% Australia 51.3 42.4 21.0% United Kingdom 27.0 28.0 -3.6% Mongolia 9.6 9.6 0.0% Sri Lanka 21.0 19.5 7.7% Other countries 23.5 22.8 3.1% Consolidated revenue from Hotel Properties 993.3 929.2 6.9%
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28 The key performance indicators of the Group-owned hotels (including hotels under lease) on an unconsolidated basis (including both subsidiaries and associates) for the six months ended 30 June 2026 and 2025 are as follows: 2026 Weighted Average 2025 Weighted Average Destinations Occupancy Room Rate RevPAR Occupancy Room Rate RevPAR (%) (USD) (USD) (%) (USD) (USD) The People ’s Republic of China Hong Kong 81 305 248 82 271 222 Chinese Mainland 61 117 72 61 111 68 Tier 1 Cities 69 158 109 70 151 106 Tier 2 Cities 60 95 57 60 91 55 Tier 3+4 Cities 51 86 43 48 81 39 Singapore 78 256 200 77 248 192 Malaysia 61 147 91 64 134 86 The Philippines 65 209 136 61 216 131 Japan 72 752 545 77 697 537 Thailand 60 174 105 59 168 99 France 53 2,178 1,147 56 2,104 1,172 Australia 90 285 258 87 240 208 United Kingdom 75 658 496 73 686 498 Mongolia 38 242 91 37 251 93 Sri Lanka 52 140 73 44 147 65 Other countries 42 220 93 41 224 93 Non-Chinese Mainland weighted average 65 249 162 64 239 153 Total weighted average 63 177 111 62 169 105 The weighted average occupancy of our hotels was 63% for the six months ended 30 June 2026, an increase of 1 percentage point, compared to 62% for the six months ended 30 June 2025. The weighted average revenue per available room ( “RevPAR ”) was USD111 for the six months ended 30 June 2026, an increase of 6%, compared to USD105 for the same period in 2025. Excluding Chinese Mainland, weighted average occupancy was 65% for the six months ended 30 June 2026, an increase of 1 percentage point, compared to 64% for the six months ended 30 June 2025. RevPAR was USD162 for the six months ended 30 June 2026, an increase of 6%, compared to USD153 for the same period in 2025.
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29 Below are comments on hotel performances on selected geographies that had a significant impact on the overall results of our hotel properties: The People ’s Republic of China Hong Kong For Hong Kong, occupancy was 81% for the six months ended 30 June 2026, a decrease of 1 percentage point, compared to 82% for the same period in 2025. RevPAR was USD248 for the six months ended 30 June 2026, an increase of 12%, compared to USD222 for the six months ended 30 June 2025, largely driven by higher average daily rates supported by strong leisure demand from international visitor arrivals. Consequently, total revenue from Hong Kong hotel properties for the six months ended 30 June 2026 increased by 14.5% to USD181.4 million. Chinese Mainland The Group had equity interest in 51 operating hotels in Chinese Mainland as at 30 June 2026, compared to 48 as at 30 June 2025. For Chinese Mainland, occupancy was 61% for the six months ended 30 June 2026, remained flat, compared to the same period in 2025. RevPAR was USD72 for the six months ended 30 June 2026, an increase of 6%, compared to USD68 for the six months ended 30 June 2025, primarily driven by higher average daily rates. Below is the performance of our hotels in different tiered cities: • In Tier 1 cities, occupancy was 69% for the six months ended 30 June 2026, a slight decrease of 1 percentage point, compared to 70% for the same period in 2025. RevPAR was USD109 for the six months ended 30 June 2026, an increase of 3%, compared to USD106 for the six months ended 30 June 2025. The growth was mainly driven by higher average daily rates as our hotels benefited from the rising number of inbound travellers. • In Tier 2 cities, occupancy was 60% for the six months ended 30 June 2026, remained flat, compared to the same period in 2025. RevPAR was USD57 for the six months ended 30 June 2026, an increase of 4%, compared to USD55 for the six months ended 30 June 2025. • In Tier 3 and Tier 4 cities, occupancy was 51% for the six months ended 30 June 2026, an increase of 3 percentage points, compared to 48% for the same period in 2025. RevPAR was USD43 for the six months ended 30 June 2026, an increase of 10%, compared to USD39 for the six months ended 30 June 2025. The growth was mainly driven by strong leisure demand which drove both higher occupancy rate and average daily rates. Total revenue from Chinese Mainland hotel properties for the six months ended 30 June 2026 increased by 4.7% to USD312.0 million.
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30 Singapore For Singapore, occupancy was 78% for the six months ended 30 June 2026, an increase of 1 percentage point, compared to 77% for the same period in 2025. RevPAR was USD200 for the six months ended 30 June 2026, an increase of 4%, compared to USD192 for the six months ended 30 June 2025. Total revenue from Singapore hotel properties for the six months ended 30 June 2026 increased by 4.5% to USD124.7 million. Our hotels in Singapore started with strong momentum in the beginning of the year with growth in both occupancy rate and average daily rates. However, we saw some headwinds from the second quarter onwards, as the Middle East conflict resulted in less long-haul and transit international visitor arrivals. Malaysia For Malaysia, occupancy was 61% for the six months ended 30 June 2026, a decrease of 3 percentage points, compared to 64% for the same period in 2025. RevPAR was USD91 for the six months ended 30 June 2026, an increase of 6%, compared to USD86 for the six months ended 30 June 2025, primarily driven by leisure traveller with higher average daily rates. Total revenue from Malaysia hotel properties for the six months ended 30 June 2026 increased by 10.7% to USD60.1 million. The Philippines For the Philippines, occupancy was 65% for the six months ended 30 June 2026, an increase of 4 percentage points, compared to 61% for the same period in 2025. RevPAR was USD136 for the six months ended 30 June 2026, an increase of 4%, compared to USD131 for the six months ended 30 June 2025, largely driven by business travel demand but with relative lower average daily rates. Total revenue from hotel properties in the Philippines for the six months ended 30 June 2026 increased by 4.9% to USD87.4 million. Japan For Japan, occupancy was 72% for the six months ended 30 June 2026, a decrease of 5 percentage points, compared to 77% for the same period in 2025. RevPAR was USD545 for the six months ended 30 June 2026, an increase of 1%, compared to USD537 for the six months ended 30 June 2025. The RevPAR growth was mainly driven by higher average daily rates but offset by less leisure travellers from both local market and Chinese Mainland market. Total revenue from our Japan hotel property for the six months ended 30 June 2026 increased by 2.3% to USD31.6 million. France For France, occupancy was 53% for the six months ended 30 June 2026, a decrease of 3 percentage points, compared to 56% for the same period in 2025. RevPAR was USD1,147 for the six months ended 30 June 2026, a decrease of 2%, compared to USD1,172 for the six months ended 30 June 2025. The decline in occupancy rate was mainly due to less leisure travel demand and renovation in February. Total revenue from our France hotel property for the six months ended 30 June 2026 increased by 0.3% to USD31.4 million.
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31 Australia For Australia, occupancy was 90% for the six months ended 30 June 2026, an increase of 3 percentage points, compared to 87% for the same period in 2025. RevPAR was USD258 for the six months ended 30 June 2026, an increase of 24%, compared to USD208 for the six months ended 30 June 2025. Our hotels in Australia continued to benefit from strong growth in international visitor arrivals. Total revenue from Australia hotel properties for the six months ended 30 June 2026 increased by 21.0% to USD51.3 million. United Kingdom For United Kingdom, occupancy was 75% for the six months ended 30 June 2026, an increase of 2 percentage points, compared to 73% for the same period in 2025. RevPAR was USD496 for the six months ended 30 June 2026, a decrease of 0.4%, compared to USD498 for the six months ended 30 June 2025. The occupancy rate increase was mainly due to strong business travel demand. The slight RevPAR decline was dragged by lower average daily rates from change in customer mix. Total revenue from our United Kingdom hotel property for the six months ended 30 June 2026 decreased by 3.6% to USD27.0 million. (ii) Hotel Management and Related Services As at 30 June 2026, the Group managed a total of 107 hotels and resorts: – 83 Group-owned hotels – 5 hotels under lease – 19 hotels owned by third parties The 19 operating hotels (6,465 available rooms) owned by third parties are located in the following destinations: – Cambodia: Phnom Penh – Canada: Toronto – UAE: Abu Dhabi (2 hotels) and Dubai – Saudi Arabia: Jeddah – Malaysia: Kuala Lumpur – India: New Delhi and Bengaluru – Taiwan: Taipei and Tainan – Chinese Mainland: Shenzhen (2 hotels), Suzhou (2 hotels), Yiwu, Nanning, Shanghai and Beijing The overall weighted average occupancy of the hotels under third party hotel management agreements was 66% for the six months ended 30 June 2026, an increase of 1 percentage point, compared to 65% for the six months ended 30 June 2025. The RevPAR was USD111 for the six months ended 30 June 2026, a decrease of 3%, compared to USD115 for the six months ended 30 June 2025. The decline in RevPAR was mainly due to negative impact from middle east conflict, but partially offset by improvements in Chinese Mainland. Gross revenue for hotel management and related services was USD133.2 million for the six months ended 30 June 2026, an increase of 8.6%, compared to USD122.6 million for the six months ended 30 June 2025.
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32 After eliminating inter-segment revenue with subsidiaries, the net revenue for hotel management and related services was USD48.6 million for the six months ended 30 June 2026, increased by 5.9%, compared to USD45.9 million for the six months ended 30 June 2025. (iii) Investment Properties The table below shows the geographical breakdown of consolidated revenue derived from our Investment Properties: Six months ended 30 June (USD million) 2026 2025 % change Chinese Mainland 18.4 17.2 7.0% Singapore 8.6 7.6 13.2% Malaysia 2.5 2.4 4.2% Mongolia 21.1 19.6 7.7% Sri Lanka 15.2 13.8 10.1% Other countries 7.6 7.4 2.7% Consolidated revenue from Investment Properties 73.4 68.0 7.9% Our investment properties held by subsidiaries in Chinese Mainland, Mongolia and Sri Lanka saw significant revenue improvement: • In Chinese Mainland, revenue growth came from continued ramp-up of our wholly owned Shangri-La Centre, Fuzhou (Phase II of Shangri-La Fuzhou), which had its office component and commercial component opened in the second half of 2023 and the first half of 2024, respectively. • In Mongolia, our investment properties continued to perform strongly, supported by rental rates increase and occupancy rates remained close to full capacity. • In Sri Lanka, our investment properties recorded higher rental rates and occupancy rates in both the commercial component and the office component. As a result, consolidated revenue from our investment properties for the six months ended 30 June 2026 was USD73.4 million, an increase of 7.9%, compared to USD68.0 million for the six months ended 30 June 2025. (iv) Property Development for Sale Revenue from property development for sale by subsidiaries for the six months ended 30 June 2026 was USD3.1 million, a decrease of USD2.5 million, compared to USD5.6 million for the six months ended 30 June 2025 mainly driven by fewer residential unit sales in Sri Lanka.
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33 EBITDA and Aggregate Effective Share of EBITDA The following table summarises information related to the EBITDA of the Company and its subsidiaries and the aggregate effective share of EBITDA of the Company, subsidiaries and associates for the six months ended 30 June 2026 and 2025 by geographical areas and by business segments: EBITDA of the Company and its subsidiaries Effective share of EBITDA of the Company and its subsidiaries Effective share of EBITDA of associates Aggregate effective share of EBITDA (USD million) 2026 2025 2026 2025 2026 2025 2026 2025 Hotel Properties The People ’s Republic of China Hong Kong 47.2 38.2 43.3 35.4 – 0.6 43.3 36.0 Chinese Mainland 57.7 56.1 52.6 50.8 17.1 16.3 69.7 67.1 Singapore 26.5 21.1 26.5 21.1 2.8 2.8 29.3 23.9 Malaysia 12.4 10.2 6.7 5.6 2.4 3.3 9.1 8.9 The Philippines 23.7 23.3 23.3 22.8 6.7 7.4 30.0 30.2 Japan 10.2 9.5 10.2 9.5 – – 10.2 9.5 Thailand 10.4 10.1 7.7 7.5 – – 7.7 7.5 France 4.1 5.3 4.1 5.3 – – 4.1 5.3 Australia 9.6 7.1 9.6 7.1 – – 9.6 7.1 United Kingdom 4.0 0.8 4.0 0.8 – – 4.0 0.8 Mongolia 2.9 3.8 1.5 2.0 – – 1.5 2.0 Sri Lanka 7.0 5.9 6.3 5.4 – – 6.3 5.4 Other countries 6.1 3.6 4.8 2.6 2.2 3.2 7.0 5.8 221.8 195.0 200.6 175.9 31.2 33.6 231.8 209.5 Hotel Management and Related Services 37.3 26.7 37.3 26.7 – – 37.3 26.7 Sub-total Hotel Operations 259.1 221.7 237.9 202.6 31.2 33.6 269.1 236.2 Investment Properties Chinese Mainland 5.7 7.7 5.0 7.0 113.8 113.6 118.8 120.6 Singapore 5.0 4.6 5.0 4.6 2.7 2.9 7.7 7.5 Malaysia 1.0 0.9 0.5 0.5 – – 0.5 0.5 Mongolia 15.2 14.1 7.8 7.2 – – 7.8 7.2 Sri Lanka 10.0 9.0 9.0 8.1 – – 9.0 8.1 Other countries 3.1 3.4 1.8 2.0 – – 1.8 2.0 Sub-total Investment Properties 40.0 39.7 29.1 29.4 116.5 116.5 145.6 145.9 Property Development for Sale & Other Business 2.4 3.7 1.9 3.2 0.8 (1.3) 2.7 1.9 Sub-total 301.5 265.1 268.9 235.2 148.5 148.8 417.4 384.0 Corporate and project expenses (12.0) (13.6) (12.0) (13.6) (0.5) (0.9) (12.5) (14.5) Grand total 289.5 251.5 256.9 221.6 148.0 147.9 404.9 369.5
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34 The Group ’s aggregate effective share of EBITDA was USD404.9 million for the six months ended 30 June 2026, an increase of 9.6%, compared to USD369.5 million for the six months ended 30 June 2025. Below shows the breakdown by business segments: • Effective share of EBITDA from Hotel Properties for the six months ended 30 June 2026 was USD231.8 million, an increase of 10.6%, compared to USD209.5 million for the six months ended 30 June 2025. The increase was mainly due to improved operating efficiency and growth in RevPAR. • Effective share of EBITDA from Hotel Management and Related Services for the six months ended 30 June 2026 was USD37.3 million, an increase of 39.7%, compared to USD26.7 million for the six months ended 30 June 2025. The increase was mainly due to higher revenue and improved operating efficiency. • Effective share of EBITDA from Investment Properties for the six months ended 30 June 2026 was USD145.6 million, slightly decreased by 0.2%, compared to USD145.9 million for the six months ended 30 June 2025. The overall business of our Investment Properties remained stable during the period. • Effective share of EBITDA from Property Development for Sale & Other Business for the six months ended 30 June 2026 was USD2.7 million, an increase of USD0.8 million, compared to USD1.9 million for the six months ended 30 June 2025. The increase was mainly due to more residential unit sales in Chinese Mainland but partially offset by fewer residential unit sales in Sri Lanka.
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35 Consolidated Profit or Loss Attributable to Owners of the Company The following table summarises information related to the consolidated profit or loss attributable to owners of the Company before and after non-operating items for the six months ended 30 June 2026 and 2025 by geographical areas and by business segments: Six months ended 30 June (USD million) 2026 2025 % change Hotel Properties The People ’s Republic of China Hong Kong 22.1 16.4 34.8% Chinese Mainland (13.7) (8.7) -57.5% Singapore 8.9 9.7 -8.2% Malaysia 3.2 3.8 -15.8% The Philippines 10.3 12.4 -16.9% Japan 5.0 5.2 -3.8% Thailand 5.3 4.8 10.4% France 1.3 1.9 -31.6% Australia 0.4 (0.4) N/M United Kingdom (5.8) (8.8) 34.1% Mongolia – (0.8) N/M Sri Lanka 6.8 1.9 257.9% Other countries 2.0 – N/M 45.8 37.4 22.5% Hotel Management and Related Services 21.4 16.0 33.8% Sub-total Hotel Operations 67.2 53.4 25.8% Investment Properties Chinese Mainland 81.6 82.9 -1.6% Singapore 6.4 6.1 4.9% Malaysia 0.4 0.3 33.3% Mongolia 7.9 6.4 23.4% Sri Lanka 7.3 7.1 2.8% Other countries 1.3 1.5 -13.3% Sub-total Investment Properties 104.9 104.3 0.6% Property Development for Sale & Other Business (1.0) (1.3) 23.1% Consolidated profit from operating properties 171.1 156.4 9.4% Corporate finance costs (net of interest income) (76.3) (81.6) 6.5% Corporate and project expenses (12.6) (15.0) 16.0% Exchange gains/(losses) of corporate investment holding companies 6.7 (8.9) N/M Consolidated profit attributable to owners of the Company before non-operating items 88.9 50.9 74.7% Non-operating items 0.1 7.0 -98.6% Consolidated profit attributable to owners of the Company 89.0 57.9 53.7% N/M: not meaningful
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36 Consolidated profit attributable to owners of the Company after non-operating items for the six months ended 30 June 2026 was USD89.0 million, an increase of 53.7% or USD31.1 million, compared to USD57.9 million for the six months ended 30 June 2025. Below shows the breakdown by business segments: • Hotel Properties registered a profit of USD45.8 million for the six months ended 30 June 2026, an increase of 22.5% or USD8.4 million compared to USD37.4 million for the six months ended 30 June 2025. The increase was mainly due to higher profits from Hong Kong and Sri Lanka but partially offset by larger losses from Chinese Mainland and reduced profits from the Philippines. • Hotel Management and Related Services registered a profit of USD21.4 million for the six months ended 30 June 2026, an increase of 33.8% or USD5.4 million, compared to USD16.0 million for the six months ended 30 June 2025. The increase was mainly due to a higher gross revenue from Hotel Management and Related Services and improved operating efficiency. • Investment Properties ’ profit for the six months ended 30 June 2026 was USD104.9 million, an increase of 0.6% or USD0.6 million, compared to USD104.3 million for the six months ended 30 June 2025. Investment Properties continued to provide stable profit. • Property Development for Sale & Other Business registered a loss of USD1.0 million for the six months ended 30 June 2026, compared to USD1.3 million loss for the six months ended 30 June 2025. As a result, consolidated profit from operating properties increased by 9.4% to USD171.1 million for the six months ended 30 June 2026 from USD156.4 million for the same period in 2025. • Non-operating items for the six months ended 30 June 2026 was an aggregate gain of USD0.1 million, a decrease of 98.6% or USD6.9 million, compared to an aggregate gain of USD7.0 million for the six months ended 30 June 2025. Effective share of net fair value losses on investment properties of USD3.9 million was recognised for the six months ended 30 June 2026, compared to gains of USD10.7 million for the six months ended 30 June 2025. The Group recognised net fair value gains of USD9.4 million on financial instruments, compared to net fair value losses of USD4.7 million for the same period last year. In addition, the Group also recognised impairment loss of USD5.4 million for a hotel property during the period.
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37 CORPORATE DEBT AND FINANCIAL CONDITIONS As at 30 June 2026, the Group ’s net borrowings (total bank loans and fixed rate bonds less cash and bank balances and short-term fund placements) amounted to USD4,507.7 million, representing an increase of USD181.8 million from USD4,325.9 million as at 31 December 2025. The increase in net borrowings was primarily attributable to the utilisation of part of the Group ’s cash resources to repay borrowings of associates, as well as the increase in the translated US dollar value of the Group ’s borrowings resulting from the appreciation of the Renminbi during the period. As the majority of the Group ’s borrowings are denominated in Renminbi, the strengthening of the Renminbi against the US dollar resulted in a higher reported borrowing balance when translated into US dollars. Consequently, the Group ’s net borrowings to total equity ratio, i.e. the gearing ratio, increased to 80.0% as at 30 June 2026 from 77.2% as at 31 December 2025 reflecting the increase in net borrowings during the period. During the six months ended 30 June 2026, the Group continued to implement its treasury and funding strategy with a focus on refinancing existing borrowings at reduced interest costs and extending the maturity profile of its debt. The Group continued to increase its Renminbi debt portfolio as Renminbi funding costs were relatively lower, thereby helping to reduce its overall interest expense. The increased Renminbi borrowings also provided a natural hedge for the Group’s Renminbi-denominated assets and investments, strengthening the matching of the Group ’s assets and liabilities by currency and mitigating the potential impact of Renminbi exchange rate fluctuations. At the corporate level, the Group executed the following bank loan agreements for refinancing purposes: – Two 5-year bank loan agreements totalling RMB5,900 million (equivalent to USD866.3 million) – Two 4-year bank loan agreements totalling HKD800 million (equivalent to USD103.2 million) – One 6-year bank loan agreement of HKD500 million (equivalent to USD64.5 million) All of the above loan agreements may be drawn down in either Hong Kong dollars or Renminbi at the Group ’s discretion. The proceeds are primarily used to refinance existing borrowings carrying higher interest costs. At the subsidiary level, the Group executed the following bank loan agreements for refinancing borrowings at reduced interest costs: – Eight 5-year bank loan agreements totalling RMB1,527.9 million (equivalent to USD224.3 million) – Two 7.5-year bank loan agreements totalling RMB677 million (equivalent to USD99.4 million) – One 10-year bank loan agreement of RMB240 million (equivalent to USD35.2 million)
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38 In addition to the bank loan agreements, the Group also completed two issuances of Panda bonds totalling RMB3,200 million (equivalent to US$469.8 million) in Chinese Mainland during the period. The first issuance in April 2026 comprised RMB400 million of 3-year notes (with an option to extend the maturity by two years to five years) and RMB800 million of 5-year notes. The second issuance in June 2026 comprised RMB1,000 million of 3-year notes (with an option to extend the maturity by two years to five years) and RMB1,000 million of 5-year notes. The June 2026 Panda bond issuance achieved the Group ’s record-low coupon rates of 1.82% for the 3-year notes and 2.15% for the 5-year notes. The RMB1,000 million 5-year notes issuance also represented the largest single 5-year notes Panda bond issuance completed by the Group to date. These issuances further strengthened the Group ’s Renminbi funding base, diversified its financing sources and contributed to reducing its overall borrowing costs. The above refinancing activities are expected to support the Group ’s liquidity management, reduce its funding costs and extend the weighted average maturity of its borrowings. The Group maintains sufficient cash reserves and undrawn committed facilities to meet its refinancing requirements for debt maturities falling due over the next two to three years, with coverage extending into 2029. This strong liquidity position provides the Group with enhanced financial flexibility, supports proactive refinancing and strengthens its ability to secure competitive financing terms from diversified funding sources. The Group ’s treasury strategy is focused on maintaining an optimal balance among liquidity, funding costs and financial flexibility. Accordingly, the Group maintains sufficient cash buffers while prudently managing its debt portfolio. While both gross borrowings and cash balances have increased, net borrowings have remained broadly stable. Surplus cash is placed in interest-bearing deposits which generate yields broadly comparable to or higher than the Group ’s cost of borrowing. Accordingly, the additional interest income earned on such surplus cash mitigates the effect of higher gross debt levels and resulted in a reduction in the Group ’s net interest expense. The Group has not encountered any difficulty when drawing loans from committed banking facilities. None of the banking facilities were cancelled by the banks during the period or after 30 June 2026. The Group has satisfactorily complied with all covenants under its borrowing agreements. As at 30 June 2026, the adjusted total equity of the Group for financial covenants calculation purpose was USD9.4 billion and the resulting indebtedness ratio (Note) as calculated was 77.4%. Note: Indebtedness ratio is defined as the sum of consolidated total financial indebtedness and contingent liabilities totalling USD7.3 billion divided by the Group ’s adjusted total equity of USD9.4 billion.
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39 The analysis of borrowings outstanding as at 30 June 2026 is as follows: Maturities of Borrowings Contracted as at 30 June 2026 Repayment (USD million) Within 1 year In the 2nd year In the 3 rd to 5th year After 5 years Total Borrowings Corporate borrowings – unsecured bank loans 325.0 666.3 3,088.9 39.6 4,119.8 – fixed rate bonds 274.1 249.1 1,168.0 475.8 2,167.0 Bank loans of subsidiaries – unsecured 85.0 46.1 661.7 155.0 947.8 Total outstanding balance 684.1 961.5 4,918.6 670.4 7,234.6 % of total outstanding balance 9.5% 13.3% 68.0% 9.2% 100.0% Undrawn but committed facilities Bank loans 9.7 140.0 582.7 298.7 1,031.1 The currency mix of borrowings and cash and bank balances as at 30 June 2026 is as follows: (USD million) Borrowings Cash and bank balances (Note) In United States dollars 336.9 1,732.5 In Hong Kong dollars 197.5 88.5 In Singapore dollars 996.3 92.0 In Renminbi 5,597.9 484.5 In Japanese yen 103.6 27.8 In Fijian dollars 2.4 12.8 In Thai baht – 89.1 In Philippines pesos – 56.3 In Malaysian ringgit – 58.8 In Euros – 15.1 In Sri Lankan rupee – 39.3 In Australian dollars – 16.1 In British pounds – 8.2 In Mongolian tugrik – 3.2 In Myanmar kyat – 1.0 In other currencies – 1.7 Total 7,234.6 2,726.9 Note: Cash and bank balances as stated included short-term fund placements.
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40 The majority of the Group ’s borrowings, including the new Renminbi bank loans and fixed rate bonds issued at the corporate level, are carrying fixed interest rates. The remaining borrowings, which are subject to floating interest rates, are substantially hedged through interest rate swap contracts to mitigate medium-term interest rate risks. Further details are provided in the subsequent section. Details of financial guarantees, contingencies and charges over assets as at 30 June 2026 are disclosed in Note 15 to the condensed consolidated interim financial statements included in this interim results announcement. TREASURY POLICIES The Group ’s treasury policies are aimed at minimising interest and currency risks. The Group assesses the market environment and its financial position and adjusts its tactics from time to time. (A) Minimising Interest Risks The Group employs a comprehensive strategy to minimise interest risks across its diverse borrowing portfolio. The majority of the Group ’s borrowings are in Renminbi, US dollar, HK dollar and Singapore dollar with centralised management at the corporate level. Corporate bonds have been issued at fixed rates. The Group closely monitors the cash flow forecasts across all subsidiaries, and arranges the transfer of surplus cash to the corporate entity to optimise debt reduction. To minimise the overall interest cost, the Group has strategically shifted from HKD/USD bank loans at higher interest cost to Renminbi borrowings at lower interest cost. This strategy has yielded positive results, with the Group ’s average interest cost lowered to 3.7% per annum for the six months ended 30 June 2026 from 4.0% per annum for the same period last year. The Group has also implemented intra-group loan arrangements and Renminbi cash pooling in Chinese Mainland to efficiently allocate surplus cash from cash rich subsidiaries to meet the funding requirements of other group entities. These intra-group financing arrangements are subject to periodic review and adjustment in response to fluctuations in currency exchange rates and bank loan interest rates. To mitigate medium-term interest rate risks associated with the Group ’s bank loans, the Group has entered into fixed HIBOR and SOFR interest rate swap contracts to hedge its interest payment for HKD and USD bank loans. During the period, the Group repaid the USD600 million bank loan that was previously hedged under an interest rate swap contract. Following this loan repayment, the related USD600 million interest rate swap contract no longer qualifies for hedge accounting. As at 30 June 2026, the outstanding interest rate swap contracts were as follows: – HKD1,300 million (equivalent to USD167.7 million) at fixed rates ranging between 1.555% and 1.855% per annum maturing from July to August 2026, which qualifies for hedge accounting – HKD1,500 million (equivalent to USD193.5 million) at fixed rates ranging between 1.505% and 1.850% per annum maturing from July to August 2026, which does not qualify for hedge accounting – USD600 million at a fixed rate of 1.460% per annum maturing in March 2027, which does not qualify for hedge accounting
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41 The adoption of predominantly fixed rate Renminbi borrowings has not only contributed to lowering the average interest cost, but also enhanced the Group ’s fixed rate debt ratio. Taking into account the fixed rate bonds, fixed rate bank loans and the interest rate swap contracts (including the cross-currency swap contracts that fix the interest rates of certain bank borrowings), the Group has 78.1% of its outstanding borrowings at fixed interest rates as at 30 June 2026, a slight decrease from 79.5% as at 31 December 2025. (B) Minimising Currency Risks The Group employs a strategic approach of utilising local currency bank borrowings to finance capital expenditures and operational funding requirements for properties and development projects in their respective countries. This strategy aims to achieve natural hedging of the Group ’s assets against currency fluctuations. Given the Group ’s significant exposure to Renminbi assets, efforts have been made to increase Renminbi borrowings. This approach not only contributes to reducing the Group ’s average interest cost, as previously discussed, but also enhances the hedging ratio for Renminbi assets. To further mitigate currency risks associated with foreign currency borrowings, the Group strategically executes cross-currency swap contracts. As at 30 June 2026, the Group has the following cross-currency swap contracts: – 7-year term JPY8,000 million between Japanese yen and HK dollar to swap bank borrowings from Japanese yen at a floating interest rate to HK dollar at a fixed interest rate of 3.345% per annum maturing in July 2026 – 5-year term USD293.5 million between US dollar and Renminbi to swap bank borrowings from US dollar at floating interest rates to Renminbi at fixed interest rates ranging between 4.18% and 4.29% per annum maturing in December 2028 The majority of the Group ’s hotels denominate room tariffs in local currencies. The Group ’s policy, wherever and to the extent possible, is to quote tariffs in the major or stable currency and maintain bank balances in that currency, if legally permitted. This comprehensive approach to currency risk management demonstrates the Group ’s commitment to financial stability and prudent asset-liability matching across its diverse international portfolio.
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42 INVESTMENT PROPERTIES VALUATION Investment properties of subsidiaries and associates continue to be stated at fair value and are reviewed semi-annually (including those properties being constructed for future use as investment properties for which fair value becomes reliably determinable). The fair values of investment properties are based on opinions from independent professional valuers as obtained by the Group and the relevant associates which own the investment properties. All changes in the fair value of investment properties are recorded in the statement of profit or loss. For the six months ended 30 June 2026, the Group recorded an overall effective share of net fair value losses of USD3.9 million for its investment properties. The following table shows the fair value gains and losses of the investment properties, net of tax held by the Group ’s subsidiaries and associates for the six months ended 30 June 2026: Subsidiaries Associates Total (USD million) 100% Effective share 100% Effective share 100% Effective share Gains/(losses) 6.2 3.2 (26.6) (7.5) (20.4) (4.3) Deferred tax (1.6) (1.4) 6.6 1.8 5.0 0.4 Gains/(losses), net of tax 4.6 1.8 (20.0) (5.7) (15.4) (3.9) FINANCIAL ASSETS – TRADING SECURITIES As at 30 June 2026, the market value of the Group ’s investment portfolio was USD12.0 million, which mainly included 4,483,451 ordinary shares in Kerry Properties Limited amounting to USD10.4 million and 2,241,725 ordinary shares in KLN Logistics Group Limited amounting to USD1.6 million. The Group recorded a loss of USD1.7 million through profit or loss for the six months ended 30 June 2026. Dividend income of USD0.6 million was recognised during the current period.
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43 DEVELOPMENT PROGRAMMES Construction work on the following projects is on-going: (A) Hotel Developments Group’s equity interest Hotel rooms Projected opening Chinese Mainland Shangri-La Zhengzhou 45% 314 2027 Japan Shangri-La Kyoto 20% 77 2026 (B) Composite Developments and Investment Property Developments Group’s equity interest Total GFA upon completion (excluding hotel component) (approximate in square metres) Scheduled completionResidential Office Commercial Chinese Mainland Shenyang Kerry Centre – Phase III 25% 136,394 69,144 93,418 2026 onwards* Composite development project in Zhengzhou 45% – 58,946 – 2030 onwards* Total 136,394 128,090 93,418 * Being developed in phases
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44 The Group is currently reviewing the development plans of the following projects: Hotel development – Rome, Italy (wholly owned by the Group) – Lakeside Shangri-La, Yangon, Myanmar (55.86% equity interest owned by the Group) – Bangkok, Thailand (73.61% equity interest owned by the Group) Composite development – Accra, the Republic of Ghana (45% equity interest owned by the Group) The Group continues to review its asset portfolio and may sell assets it considers non-core at an acceptable price and introduce strategic investors for some of its operating assets/development projects. The Group adjusts its development plans and investment strategy from time to time in response to changing market conditions and to improve the financial position of the Group. MANAGEMENT CONTRACTS FOR HOTELS OWNED BY THIRD PARTIES JEN Hangzhou by Shangri-La, a hotel owned by a third party, commenced operations in early August 2026. At the same time, the hotel management agreement in respect of Shangri-La Bengaluru in India, which is also owned by a third party, will be terminated at the end of August 2026. As at the date of this announcement, the Group has management agreements in place for 19 operating hotels owned by third parties after excluding Shangri-La Bengaluru. During the six months ended 30 June 2026, the Group entered into two new hotel management agreements for third-party owned hotels currently under development in Harbin and Zhengzhou, Chinese Mainland. Both hotels will be managed under the Traders brand. As at the date of this announcement, the Group has management agreements in place for six third-party owned hotels under development, located in Wuxi (two hotels), Harbin and Zhengzhou (Chinese Mainland), Melbourne (Australia) and Bodrum (Turkey). The Group continues to review proposals it receives for management opportunities and intends to secure management agreements for third-party owned hotels that do not require capital commitment in locations/cities which it considers to be of long-term strategic interest. HUMAN RESOURCES As at 30 June 2026, the Company and its subsidiaries had approximately 24,000 employees. The number of people employed by Shangri-La Group, including all operating hotels, was 39,800. Remuneration policies, share award schemes and training schemes have been consistently applied by the Group as disclosed in 2025 annual report.
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45 PROSPECTS We delivered a solid set of results in the first half of 2026 despite headwinds arising from conflicts in the Middle East region. The Group ’s effective share of revenue grew by 4.9% year-on-year to USD1.3 billion. The effective share of EBITDA grew faster by 9.6% year-on-year to USD404.9 million with a 1.3 percentage point expansion in EBITDA margin from operational improvement and disciplined execution. Supported by our improved earnings performance and strong cash flow generation, we are pleased to declare an interim dividend of HK5 cents per share for the six months ended 30 June 2026. During the first six months of 2026, guided by our vision of becoming the best-loved hospitality group, we continued to advance our brand and portfolio strategy. In April 2026, we launched Shangri-La Kunming, completing the second phase of our first dual-brand development following the opening of JEN Kunming by Shangri-La in April 2024. The market response to our new Shangri-la product has been encouraging. The Silk Lakehouse, Shangri-La Hangzhou, our flagship property under the Shangri-La Signatures brand, as well as the dual-brand development of Shangri-La Hongqiao Airport and Traders Hongqiao Airport, Shanghai, both opened last year, have continued to receive positive feedback from guests and prospective hotel management agreement partners. The favorable response to Shangri-La ’s refreshed brand positioning and design concepts and financial performances has also helped us secure new management opportunities. As at the end of June 2026, we had several major hotel management agreements in our pipeline, including but not limited to a dual-brand Shangri-La and Traders hotels development in Wuxi, Chinese Mainland, as well as a new project in Bodrum, Turkey. These signings further support our asset-light growth strategy, leveraging our strong brand equity and operating expertise to expand our footprint in a capital-efficient manner. In addition, we are actively pursuing growth opportunities in China through the expansion of our refreshed Traders brand, supported by new product offerings and design concepts. In the first half of 2026, we successfully signed two hotel management agreements under the Traders brand in China. These signings will further strengthen our presence in the Chinese market and expand our customer base in the mass-market travel segment, positioning the Group to deliver sustainable growth and accelerate earnings growth over the medium term. Financial discipline, including the continuous enhancement of operating efficiency, remains a core pillar of our strategy. During the first half of 2026, we began to see initial results from several efficiency initiatives implemented across the Group, contributing to our EBITDA margin expansion year over year. In treasury management, we successfully completed the issuances of a RMB1.2 billion and RMB2.0 billion Panda Bond in April 2026 and June 2026, respectively, further reducing our borrowing costs and strengthening our funding profile. The successful issuances reflect the capital markets ’ continued confidence in our business fundamentals, financial discipline and long-term growth prospects. Looking ahead, we remain cautiously optimistic about the industry outlook for the second half of 2026. While travel demand continues to be supported by favorable long-term fundamentals, ongoing conflicts in the Middle East and extreme weather conditions in China could bring uncertainties and volatility for the operating environment in the near term. Nevertheless, these near-term headwinds do not alter our long-term strategy. We remain committed to strengthening our brands, advancing our asset-light growth initiatives, enhancing operational efficiency and maintaining prudent financial discipline. We believe these priorities will continue to strengthen the Group’s resilience, support sustainable value creation for our guests, partners and shareholders, and position us well to capture future growth opportunities as market conditions evolve.
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46 REPURCHASE, SALE OR REDEMPTION OF THE COMPANY ’S LISTED SECURITIES During the underlying six-month period, neither the Company nor any of its subsidiaries repurchased, sold or redeemed any of the listed securities of the Company (including any sale or transfer of treasury shares). During the underlying six-month period and as at the date of this announcement, the Company does not have any treasury shares (including any treasury shares held or deposited with the Central Clearing and Settlement System ( “CCASS ”)). CORPORATE GOVERNANCE The Company recognises the importance of transparency in governance and accountability to shareholders and that shareholders benefit from good corporate governance. The Company reviews its corporate governance framework on an ongoing basis to ensure compliance with best practices. The Board has adopted a composite handbook ( “Directors Handbook ”) comprising (amongst other things) a set of corporate governance principles of the Company, whose terms align with or are stricter than the requirements set out in the code provisions under the Corporate Governance Code (“CG Code ”) as contained in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, save for the provision in the Directors Handbook that the positions of the chairman and the chief executive officer of the Company may be served by the same person. The Directors Handbook serves as a comprehensive guidebook for all directors of the Company. The Company has complied with the CG Code throughout the underlying six-month period except for the deviation from Code Provision C.2.1 which provides that the roles of the chairman and the chief executive officer should be separate and should not be performed by the same individual. Ms KUOK Hui Kwong has served as both chairman and chief executive officer of the Company since her appointment as Group Chief Executive Officer on 1 August 2025. Ms KUOK has played a key leadership role in the Company since her appointment as an Executive Director in June 2016 and as Chairman in January 2017. She has been primarily responsible for formulating the Company ’s strategic priorities and steering the Company towards its goals. The combination of the roles of chairman and chief executive officer under the leadership of Ms KUOK enhances the Company ’s strategic cohesion and operational execution by ensuring a unified and consistent vision across all levels of leadership. An appropriate balance of power and authority is ensured by the Company ’s governance and internal controls framework, including the operation of the Board with active participation from Directors, a majority of the Board comprising Independent Non-Executive Directors ( “INEDs ”), and the Audit & Risk Committee and Remuneration & Human Capital Committee being chaired by INEDs. The Company will continue to review and monitor its practices for the purpose of complying with the CG Code and maintaining a high standard of corporate governance.
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47 QUALIFICATION FOR INTERIM DIVIDEND To qualify for the interim dividend, all share transfers accompanied by the relevant share certificates must be lodged for registration with the Company ’s branch share registrar in Hong Kong, Tricor Investor Services Limited of 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong SAR, no later than 4:30 pm on 28 September 2026. The Company will withdraw all treasury shares (if any) from CCASS, and either re-register them in its own name as treasury shares or cancel them, in each case before 28 September 2026. On behalf of the Board of Shangri-La Asia Limited KUOK Hui Kwong Chairman and Group Chief Executive Officer Hong Kong, 27 August 2026 As at the date hereof, the directors of the Company are: Executive directors Ms KUOK Hui Kwong (Chairman and Group Chief Executive Officer) Mr TEO Nee Chuan (Group Chief Financial Officer and Group Head of Investment and Asset Management (China)) Non-executive director Mr LIM Beng Chee Independent non-executive directors Professor LI Kwok Cheung Arthur Mr YAP Chee Keong Mr LI Xiaodong Forrest Mr ZHUANG Chenchao Ms KHOO Shulamite N K Mr CHUA Yuan Wen William