股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Paliburg Holdings Limited (百利保控股有限公司) (於百慕達註冊成立之有限公司) 呈交日期: 2025年9月4日 FF301 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00617 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,114,585,474 | | 0 | | 1,114,585,474 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 1,114,585,474 | | 0 | | 1,114, ...

NOTIFICATION LETTER 2nd September, 2025 (Stock Code : 617) Dear Non-Registered Holder (Note 1), If you for any reason have difficulty in receiving email notification or gaining access to the Website Version of the Corporate Communications and would like to receive the Current Corporate Communications and all future Corporate Communications in printed form, please complete, sign the enclosed Request Form and return it to the Company's branch share registrar in Hong Kong, Tricor Tengis Limited ("Branch Share ...

The English and Chinese versions of the Company's Current Corporate Communication are now available on the Company's website at www.paliburg.com.hk and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk respectively (the "Website Version"). The Company strongly recommends you to access the Website Version of the Current Corporate Communication and all future Corporate Communications (Note 1). If you have elected to receive the Corporate Communications in printed ...

此乃要件 請即處理 閣下如對本通函任何方面或應採取之行動有任何疑問，應諮詢 閣下之股票經紀或其他註 冊證券商、銀行經理、律師、專業會計師或其他專業顧問。 閣下如已將名下之Paliburg Holdings Limited之證券全部售出或轉讓，應立即將本通函送 交買主或承讓人，或經手買賣或轉讓之銀行、股票經紀或其他代理商，以便轉交買主或承 讓人。 香港交易及結算所有限公司及香港聯合交易所有限公司對本通函之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不對因本通函全部或任何部份內容而產生 或因倚賴該等內容而引致之任何損失承擔任何責任。 買賣交易已根據上市規則第14.44條經股東書面批准以代替舉行百利保之股東大會，前提是 有關批准僅於批准買賣交易之決議案已於世紀城市股東特別大會上獲正式通過後生效。本 通函寄發予百利保股東僅供參考用途。 二零二五年九月二日 | 釋義 | i | | --- | --- | | 百利保董事會函件 | 1 | | 附錄一 － 財務資料 | 15 | | 附錄二 － 一般資料 | 19 | 釋 義 於本通函內，除非文義另有所指，否則下列詞彙具有以下涵義： | 「聯繫人」 ...

Core Viewpoint - The company reported a decline in revenue and a narrowed loss for the first half of 2025, indicating ongoing challenges in its financial performance [1] Financial Performance - The company achieved revenue of HKD 1.186 billion, representing a year-on-year decrease of 14.8% [1] - The loss attributable to equity holders of the parent company was HKD 613 million, which is a 9.3% reduction compared to the previous year [1] - The basic loss per share was HKD 0.59 [1]

Core Viewpoint - The company reported a decline in revenue and a narrowed loss for the first half of 2025, indicating ongoing challenges in its financial performance [1] Financial Performance - The company achieved revenue of HKD 1.186 billion, representing a year-on-year decrease of 14.8% [1] - The loss attributable to equity holders of the parent company was HKD 613 million, which is a 9.3% reduction compared to the previous year [1] - The basic loss per share was HKD 0.59 [1]

Core Viewpoint - The company reported a decline in revenue and gross profit for the six months ending June 30, 2025, indicating ongoing financial challenges [1] Financial Performance - Revenue for the period was HKD 1.186 billion, a decrease of 14.8% year-on-year [1] - Gross profit amounted to HKD 404 million, reflecting a year-on-year decrease of 2.5% [1] - The loss attributable to equity holders of the parent company was HKD 613 million, an improvement from a loss of HKD 676 million in the same period last year [1] - Basic loss per share was HKD 0.59 [1]

[Financial and Business Summary](index=1&type=section&id=Financial%20and%20Business%20Summary) This summary presents key financial and business indicators for the six months ended June 30, 2025, compared to the same period in 2024, showing a decrease in revenue but a narrowed loss attributable to owners of the parent Financial and Business Summary for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 (HKD million) | Six Months Ended June 30, 2024 (HKD million) | % Change | | :--- | :--- | :--- | :--- | | Revenue | 1,186.0 | 1,392.0 | -14.8% | | Gross Profit | 403.8 | 414.2 | -2.5% | | Profit/(Loss) from Operating Activities Before Depreciation, Finance Costs and Tax | (24.7) | 78.0 | Not Applicable | | Loss Attributable to Owners of the Parent | (613.4) | (676.3) | -9.3% | | Basic Loss Per Ordinary Share Attributable to Owners of the Parent | HKD (0.59) | HKD (0.64) | -7.8% | | **At Period End** | **As at June 30, 2025** | **As at December 31, 2024** | **% Change** | | Book Value of Net Asset Value Per Ordinary Share Attributable to Owners of the Parent | HKD 7.13 | HKD 7.61 | -6.3% | | Adjusted Net Asset Value Per Ordinary Share Attributable to Owners of the Parent | HKD 12.57 | HKD 13.12 | -4.2% | [Overall Performance Overview](index=2&type=section&id=Overall%20Performance%20Overview) This section outlines the Group's financial performance, key business segments, and future outlook for the first half of 2025, showing narrowed overall loss despite reduced property income due to market downturn, with stable hotel operations and active non-core asset disposals [Financial Results](index=2&type=section&id=Financial%20Results) The Group's consolidated loss attributable to shareholders decreased in the first half of 2025, driven by stable hotel growth but offset by lower property segment income and fair value losses on investment properties - For the six months ended June 30, 2025, the Group recorded a consolidated loss attributable to shareholders of **HKD 613.4 million**, a narrowing from **HKD 676.3 million** in the same period of 2024[5](index=5&type=chunk)[6](index=6&type=chunk) - Property segment revenue decreased compared to the same period in 2024, primarily due to the sluggish real estate market conditions in Hong Kong and Mainland China[5](index=5&type=chunk)[6](index=6&type=chunk) - Hotel business performance was stable, with increased revenue contribution compared to the previous comparative period[5](index=5&type=chunk)[6](index=6&type=chunk) - Gross profit was **HKD 403.8 million** (2024: HKD 414.2 million), with an operating loss of **HKD 24.7 million** (2024: profit of HKD 78.0 million), primarily impacted by fair value losses on investment properties and impairment losses on properties held for sale totaling approximately **HKD 200.8 million**[5](index=5&type=chunk)[6](index=6&type=chunk) - Depreciation expenses for Hong Kong hotel properties amounted to **HKD 335.4 million**, adversely affecting reported results but having no impact on cash flow[5](index=5&type=chunk) [Business Review](index=4&type=section&id=Business%20Review) The Group comprises four listed companies with diversified business interests including property, hotels, aircraft ownership and leasing, and financial asset investments, conducted through Regal Hotels International Holdings Limited and P&R Holdings Limited - The Group consists of four listed companies with diversified business interests, including property, hotels, aircraft ownership and leasing, and financial assets and other investments[9](index=9&type=chunk) - The Group directly holds approximately **69.3%** controlling interest in Regal Hotels International Holdings Limited, which in turn holds approximately **74.9%** of the fund units in Regal Real Estate Investment Trust[9](index=9&type=chunk) - The Group conducts its Hong Kong property development and investment business through P&R Holdings Limited, a **50/50** joint venture with Regal[9](index=9&type=chunk) - P&R also holds a beneficial controlling interest in Cosmopolitan International Holdings Limited, which primarily engages in property development in China[10](index=10&type=chunk) [Outlook](index=6&type=section&id=Outlook) Despite anticipated challenging economic conditions, management is actively planning to dispose of certain non-core assets to strengthen the Group's financial foundation - Management is taking proactive steps, planning to dispose of certain non-core assets held by the Group across various segments[17](index=17&type=chunk) - The objective is to strengthen the Group's financial foundation, despite the overall economic environment potentially remaining challenging[17](index=17&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's diversified business segments, including property development and investment, construction, hotel ownership and management, aircraft leasing, and financial asset investments, analyzing market conditions and operational updates for various projects and subsidiaries [Business Review](index=6&type=section&id=Business%20Review) The Group's core businesses encompass property development and investment, construction, hotel ownership and management, asset management, aircraft ownership and leasing, and other investments, primarily conducted through its listed subsidiaries Regal, Regal REIT, and Cosmopolitan, with P&R Holdings Limited as a key property joint venture - The Group's significant investments and principal businesses include property development and investment, construction and building-related businesses, hotel ownership, hotel operation and management, asset management, aircraft ownership and leasing, and other investments[18](index=18&type=chunk) - Regal, a major listed subsidiary of the Group, has business interests including hotel ownership (through Regal REIT), hotel operation and management, asset management, property development and investment (through P&R), and aircraft ownership and leasing[18](index=18&type=chunk) - Cosmopolitan, a listed subsidiary held through P&R, primarily engages in property development and investment in China, as well as other investments[19](index=19&type=chunk) [Property](index=5&type=section&id=Property) The Group's property business faces challenges in Hong Kong and China, yet the Hong Kong residential market shows stable signs, with ongoing residential and commercial projects, active disposal of remaining units and non-core overseas assets, and retention of some properties for recurring income [P&R Holdings Limited (P&R) Property Projects](index=7&type=section&id=P%26R%20Holdings%20Limited%20(P%26R)%20Property%20Projects) P&R, a key entity for the Group's Hong Kong property development, continues sales of the luxury residential project Mount Regalia, holds properties like We Go MALL and iclub Mong Kok Hotel for recurring income, and plans new commercial/residential developments in Shau Kei Wan and Castle Peak Road - Overall demand in the Hong Kong residential property market remains relatively stable, with continuous growth in total sales transactions and a narrowing trend in property price declines[11](index=11&type=chunk) - Mount Regalia (Kau To, Sha Tin) has sold or agreed to sell **21 garden houses** and **77 apartment units**, generating total sales of **HKD 5,218.5 million**, with **3 houses** and **59 apartment units** currently remaining for sale[24](index=24&type=chunk) - P&R holds properties such as We Go MALL (Ma On Shan, Sha Tin), iclub Mong Kok Hotel, and iclub AMTD Sheung Wan Hotel (P&R holds **50%** interest) to generate recurring and operating income[12](index=12&type=chunk)[21](index=21&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - P&R owns two commercial/residential development sites in Kam Wa Street, Shau Kei Wan, and Castle Peak Road, with the Castle Peak Road project having successfully consolidated **100%** ownership and currently in discussions with the government for a conservation and development proposal[12](index=12&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Regal Hotels International Holdings Limited](index=9&type=section&id=Regal%20Hotels%20International%20Holdings%20Limited) Regal Hotels International Holdings Limited successfully operates Regala Skycity Hotel in Hong Kong and achieved strong sales for The Alto residential project, while actively disposing of overseas properties in London and Lisbon to optimize its asset portfolio - Regala Skycity Hotel (Hong Kong International Airport) officially opened in April 2023, featuring **1,208 rooms and suites**, and has received BEAM Plus Gold and EarthCheck Design Gold certifications[30](index=30&type=chunk) - The remaining **123 residential units** at The Alto (Queen's Road West, Hong Kong) were relaunched for sale, with **120 units** sold or agreed to be sold to date, generating total sales of **HKD 898.7 million**[31](index=31&type=chunk) - Regal Group retains **8 garden houses** at Regalia Bay (Stanley, Hong Kong), with some continuing to be offered for sale[33](index=33&type=chunk) - Regal Group has entered into a conditional agreement to dispose of its wholly-owned subsidiary holding the property at **41 Kingsway, London, UK**, for a purchase price of **GBP 19.5 million** (approximately **HKD 204.1 million**), with the transaction pending shareholder approval[35](index=35&type=chunk) - Regal Group has entered into an agreement to dispose of its project company holding the property at **Rua Dos Fanqueiros 156, Lisbon, Portugal**, for a cash consideration of **EUR 9.3 million** (approximately **HKD 83.9 million**), expected to complete by May 2026[36](index=36&type=chunk) [Cosmopolitan International Holdings Limited](index=11&type=section&id=Cosmopolitan%20International%20Holdings%20Limited) Cosmopolitan International Holdings Limited continues sales of remaining commercial and parking units at its China property developments in Chengdu and Tianjin, albeit slowly due to subdued market demand, while its Xinjiang project involves afforestation for future real estate development land acquisition - Sales of commercial units and parking spaces at the Chengdu project – Regal International Plaza – are ongoing but progressing relatively slowly; internal construction of the hotel has been completed and property ownership certificates obtained[38](index=38&type=chunk)[39](index=39&type=chunk) - Sales of commercial units at the Tianjin project – Regal New Gate – continue, with a total area of **16,050 square meters** sold for approximately **RMB 374.1 million**; the overall Tianjin real estate market, particularly for commercial properties, remains weak[40](index=40&type=chunk)[41](index=41&type=chunk) - The Xinjiang project involves afforestation on approximately **4,300 mu** of land to acquire about **1,843 mu** for real estate development, with the Group having the right to participate in bidding and receive compensation for afforestation costs[42](index=42&type=chunk) [Construction and Building-Related Businesses](index=13&type=section&id=Construction%20and%20Building-Related%20Businesses) The Group's wholly-owned Paliburg Engineering Limited serves as the main contractor for P&R's residential projects and the Group's Hong Kong hotel projects, providing construction management services, while the development consultancy division offers professional support for internal projects from feasibility to completion - Paliburg Engineering Limited provides main contractor services for P&R's residential projects and the Group's Hong Kong hotel projects, and is responsible for construction management[43](index=43&type=chunk) - The development consultancy division offers professional services such as development appraisal, project management, construction, interior design, quality control, and quantity surveying to support development projects of Group member companies[43](index=43&type=chunk) [Financial Assets and Other Investments](index=13&type=section&id=Financial%20Assets%20and%20Other%20Investments) The Group maintains a substantial investment portfolio encompassing listed securities, investment funds, private equity, bonds, and treasury products, which recorded a net loss during the review period - The Group holds a substantial investment portfolio, including listed securities and other investments, covering investment funds, private equity, bonds, and treasury products[44](index=44&type=chunk) - During the review period, the Group recorded a net loss in its financial asset investment business[44](index=44&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) This section reviews the Group's financial position, including asset valuation, capital resources, cash flow, debt levels, and gearing ratios, highlighting the impact of revaluing Hong Kong hotel properties on adjusted net asset value and outlining funding strategies and asset pledges [Asset Values](index=14&type=section&id=Asset%20Values) The Group's Hong Kong hotel properties are accounted for at cost less accumulated depreciation, but their market value significantly exceeds book value; for reference, the Group presents an adjusted net asset value per ordinary share of **HKD 12.57** after revaluing hotel properties to market value - The total market value of the Group's hotel properties in Hong Kong significantly exceeds their total book value, due to the requirement to account for accumulated depreciation[8](index=8&type=chunk)[45](index=45&type=chunk) Unaudited Adjusted Net Asset Value Attributable to Owners of the Parent | Metric | As at June 30, 2025 (HKD million) | Per Ordinary Share (HKD) | | :--- | :--- | :--- | | Book Value of Net Asset Value Attributable to Owners of the Parent | 7,952.5 | 7.13 | | Adjustment for Revaluation of the Group's Hong Kong Hotel Property Portfolio to Market Value and Reversal of Related Deferred Tax Liabilities | 6,056.2 | 5.44 | | Unaudited Adjusted Net Asset Value Attributable to Owners of the Parent | 14,008.7 | 12.57 | [Capital Resources and Funding](index=14&type=section&id=Capital%20Resources%20and%20Funding) The Group adopts prudent funding and financial policies, primarily using internal funds and bank loans for property development projects, and periodically reviews interest rate hedging instruments and considers foreign exchange hedging for overseas investments to manage risks - The Group's overall business operations consistently adopt prudent funding and financial policies, with cash balances primarily held as bank deposits[46](index=46&type=chunk) - Funding for Hong Kong property development projects is partly from internal resources, with the remainder provided through bank loans covering a portion of land premiums and most construction costs[46](index=46&type=chunk) - Funding for China and overseas development projects primarily utilizes internal funds and proceeds from pre-sale units, with project loans potentially arranged[46](index=46&type=chunk) - Management reviews the use of interest rate hedging instruments based on business and operational needs and may consider using USD or HKD to hedge part or all of overseas investment amounts to control foreign exchange fluctuation risks[47](index=47&type=chunk) [Cash Flow](index=15&type=section&id=Cash%20Flow) During the review period, the Group's net cash flow from operating activities significantly increased, while net interest expenses decreased - Net cash flow from operating activities was **HKD 198.3 million** (2024: HKD 21.0 million)[48](index=48&type=chunk) - Net interest expenses were **HKD 472.9 million** (2024: HKD 593.5 million)[48](index=48&type=chunk) [Debt and Gearing Ratio](index=15&type=section&id=Debt%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's cash and bank balances decreased, leading to an increase in debt net of cash and a higher gearing ratio; however, the adjusted gearing ratio is lower when total assets are adjusted by revaluing Hong Kong hotel properties to market value - Cash and bank balances together with time deposits amounted to **HKD 982.6 million** (December 31, 2024: HKD 1,404.2 million)[49](index=49&type=chunk) - Debt net of cash and bank balances together with time deposits was **HKD 18,524.7 million** (December 31, 2024: HKD 18,332.2 million)[49](index=49&type=chunk) - The gearing ratio was **52.8%** (December 31, 2024: 50.8%)[49](index=49&type=chunk) - After adjusting for the revaluation of Hong Kong hotel properties to market value, the adjusted gearing ratio was **40.4%** (December 31, 2024: 38.9%)[49](index=49&type=chunk) [Lease Liabilities](index=15&type=section&id=Lease%20Liabilities) As of June 30, 2025, the Group's lease liabilities slightly decreased compared to December 31, 2024 - Lease liabilities amounted to **HKD 9.2 million** (December 31, 2024: HKD 10.8 million)[51](index=51&type=chunk) [Pledged Assets](index=16&type=section&id=Pledged%20Assets) A significant portion of the Group's properties under development, property, plant and equipment, investment properties, right-of-use assets, properties held for sale, time deposits, and bank balances are pledged to secure bank loans and related bank guarantees - As of June 30, 2025, a total of **HKD 28,511.3 million** in properties under development, property, plant and equipment, investment properties, right-of-use assets, properties held for sale, time deposits, and bank balances were pledged to secure bank loans and lease guarantees[52](index=52&type=chunk) - Certain ordinary shares held by a listed subsidiary with a market value of **HKD 54.2 million**, along with equity interests in certain property-holding companies and other assets, were also pledged to secure other debts[52](index=52&type=chunk)[53](index=53&type=chunk) [Capital Commitments](index=16&type=section&id=Capital%20Commitments) Details of the Group's capital commitments as of June 30, 2025, will be presented in the interim financial statements - Details of capital commitments are contained in the condensed consolidated financial statements in the Company's interim report for the six months ended June 30, 2025, to be published on or before September 30, 2025[54](index=54&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) Details of the Group's contingent liabilities as of June 30, 2025, will be presented in the interim financial statements - Details of contingent liabilities are contained in the interim financial statements[55](index=55&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board of Directors resolved not to declare an interim dividend for the financial year ending December 31, 2025 - The Board of Directors resolved not to declare an interim dividend for the financial year ending December 31, 2025 (2024: nil)[56](index=56&type=chunk) [Interim Results](index=17&type=section&id=Interim%20Results) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the income statement, statement of comprehensive income, and statement of financial position, with detailed notes on accounting policies, segment information, revenue analysis, finance costs, taxation, and post-reporting date events [Condensed Consolidated Income Statement](index=17&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group recorded a loss attributable to owners of the parent of **HKD 613.4 million**, an improvement from the prior year, despite a decrease in revenue, primarily due to significantly reduced finance costs Key Data from Condensed Consolidated Income Statement | Metric | Six Months Ended June 30, 2025 (HKD million) | Six Months Ended June 30, 2024 (HKD million) | | :--- | :--- | :--- | | Revenue | 1,186.0 | 1,392.0 | | Gross Profit | 403.8 | 414.2 | | Other Income and Gains (Net) | 15.4 | 112.2 | | Fair Value Loss on Investment Properties (Net) | (168.0) | (101.7) | | Operating Loss | (370.8) | (278.6) | | Finance Costs | (521.4) | (651.9) | | Loss Before Tax | (894.0) | (933.5) | | Loss Attributable to Owners of the Parent | (613.4) | (676.3) | [Condensed Consolidated Statement of Comprehensive Income](index=19&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive loss was **HKD 839.9 million**, a narrowing from the prior year, mainly influenced by exchange differences and fair value changes in cash flow hedges Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HKD million) | Six Months Ended June 30, 2024 (HKD million) | | :--- | :--- | :--- | | Loss for the Period | (899.4) | (1,021.3) | | Other Comprehensive Income/(Loss) | 59.5 | (52.3) | | Total Comprehensive Loss for the Period | (839.9) | (1,073.6) | | Attributable to Owners of the Parent | (566.7) | (711.6) | - Exchange differences on translation of overseas operations resulted in a gain of **HKD 107.5 million** (2024: loss of HKD 61.6 million)[61](index=61&type=chunk) [Condensed Consolidated Statement of Financial Position](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets, as well as net current assets, decreased compared to December 31, 2024, reflecting changes in the asset and liability structure Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Total Non-Current Assets | 25,988.6 | 26,893.0 | | Total Current Assets | 9,066.3 | 9,227.8 | | Total Current Liabilities | (7,965.0) | (7,697.1) | | Net Current Assets | 1,101.3 | 1,530.7 | | Net Assets | 12,698.7 | 13,479.8 | | Equity Attributable to Owners of the Parent | 7,952.5 | 8,484.9 | - Properties under development (current assets) decreased from **HKD 1,868.9 million** to **HKD 657.7 million**[62](index=62&type=chunk) - Properties held for sale increased from **HKD 5,211.4 million** to **HKD 6,322.8 million**[62](index=62&type=chunk) [Notes](index=22&type=section&id=Notes) These notes provide detailed explanations and supplementary information for the condensed consolidated financial statements, covering accounting policies, segment information, revenue composition, finance costs, taxation, earnings per share calculation, and significant post-reporting date events [Accounting Policies and Basis of Preparation](index=22&type=section&id=Accounting%20Policies%20and%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34, adopting revised HKFRS for the first time, with HKAS 21 amendments on lack of exchangeability having no impact, and are based on a going concern assumption considering future cash flows, asset disposal plans, and refinancing arrangements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[64](index=64&type=chunk) - The amendments to HKAS 21 'Lack of Exchangeability' have no impact on the condensed consolidated financial statements, as all the Group's transaction currencies are exchangeable[65](index=65&type=chunk) - The condensed consolidated financial statements are prepared on the assumption that the Group can continue as a going concern, considering estimated cash flows for the next twelve months, contracted sales of property assets, plans for disposal of non-core assets, and bank loan refinancing arrangements[66](index=66&type=chunk)[67](index=67&type=chunk) [Segment Information](index=23&type=section&id=Segment%20Information) The Group's operations are categorized into seven segments: property development and investment, construction and building-related businesses, hotel operation and management and hotel ownership, asset management, financial asset investment, aircraft ownership and leasing, and other businesses, with management monitoring each segment's performance based on adjusted profit/loss before tax - The composition of the Group's business units is classified based on the products and services of each business unit, totaling **seven** operating business segments[68](index=68&type=chunk)[70](index=70&type=chunk) - Segment performance is assessed based on the profit/(loss) of the reported segment, which measures adjusted profit/(loss) before tax[68](index=68&type=chunk) Revenue and Segment Results Before Depreciation by Business Segment | Segment | 2025 H1 Sales to External Customers (HKD million) | 2024 H1 Sales to External Customers (HKD million) | 2025 H1 Segment Results Before Depreciation (HKD million) | 2024 H1 Segment Results Before Depreciation (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Property Development and Investment | 248.4 | 491.0 | (204.8) | (117.1) | | Construction and Building-Related Businesses | 15.4 | 8.8 | (8.1) | (4.3) | | Hotel Operation and Management and Hotel Ownership | 878.8 | 841.2 | 248.6 | 251.2 | | Asset Management | – | – | (6.6) | (6.5) | | Financial Asset Investment | 0.8 | 2.4 | (0.5) | (65.4) | | Aircraft Ownership and Leasing | – | 11.8 | – | 78.2 | | Other | 42.6 | 36.8 | 1.0 | 2.3 | | **Total** | **1,186.0** | **1,392.0** | **29.6** | **138.4** | [Analysis of Revenue, Other Income and Gains (Net)](index=25&type=section&id=Analysis%20of%20Revenue%2C%20Other%20Income%20and%20Gains%20(Net)) The Group's total revenue decreased primarily due to a significant reduction in property sales revenue, despite growth in hotel operation and management services income, while other income and gains net significantly declined due to lower gains from disposal of property, plant and equipment and reduced interest and dividend income Revenue Source Analysis | Revenue Source | 2025 H1 (HKD million) | 2024 H1 (HKD million) | | :--- | :--- | :--- | | Proceeds from Property Sales | 216.6 | 455.7 | | Hotel Operation and Management Services | 848.6 | 808.7 | | Construction and Building-Related Revenue | 11.1 | 4.5 | | Property Management Fees | 4.3 | 4.3 | | Other Businesses | 42.6 | 36.8 | | Rental Income (Hotel Properties, Investment Properties, Aircraft, Other) | 59.6 | 77.1 | | Interest Income (Financial Assets, Finance Leases) | 2.6 | 3.3 | | Dividend Income from Listed Investments | 0.8 | 1.6 | | Loss on Disposal of Listed Investments (Net) | (0.2) | – | | **Total Revenue** | **1,186.0** | **1,392.0** | Analysis of Other Income and Gains (Net) | Source | 2025 H1 (HKD million) | 2024 H1 (HKD million) | | :--- | :--- | :--- | | Bank Interest Income | 6.1 | 12.7 | | Other Interest Income | 8.0 | 11.2 | | Dividend Income from Unlisted Investments | 5.1 | 9.6 | | Loss on Disposal of Unlisted Investments | (5.5) | – | | Gain on Disposal of Property, Plant and Equipment Items | 0.1 | 69.2 | | Other | 1.6 | 9.5 | | **Total** | **15.4** | **112.2** | [Analysis of Profit from Property Sales and Depreciation](index=26&type=section&id=Analysis%20of%20Profit%20from%20Property%20Sales%20and%20Depreciation) The Group's net profit from property sales slightly decreased, and the total depreciation of property, plant and equipment and right-of-use assets also saw a minor reduction - Net profit from property sales was **HKD 73.7 million** (2024: HKD 77.0 million)[75](index=75&type=chunk) - Depreciation of property, plant and equipment was **HKD 176.1 million** (2024: HKD 184.1 million)[75](index=75&type=chunk) - Depreciation of right-of-use assets was **HKD 170.0 million** (2024: HKD 172.5 million)[75](index=75&type=chunk) [The Group's Finance Costs](index=27&type=section&id=The%20Group%27s%20Finance%20Costs) The Group's total finance costs significantly decreased, primarily due to a reduction in interest on bank loans Finance Cost Analysis | Item | 2025 H1 (HKD million) | 2024 H1 (HKD million) | | :--- | :--- | :--- | | Interest on Bank Loans | 475.8 | 608.6 | | Interest on Other Debts | 15.5 | 15.9 | | Interest Expense on Contract Revenue | 0.7 | 2.5 | | Interest on Lease Liabilities | 0.2 | 0.3 | | Amortization of Debt Establishment Costs | 24.9 | 25.8 | | Fair Value Change of Derivative Financial Instruments – Cash Flow Hedges | 2.9 | (3.9) | | Other Loan Costs | 1.4 | 2.8 | | **Total Finance Costs** | **521.4** | **651.9** | [Income Tax Expense for the Period](index=28&type=section&id=Income%20Tax%20Expense%20for%20the%20Period) The Group's income tax expense for the period significantly decreased, mainly due to a negative adjustment for China Land Appreciation Tax and the impact of deferred tax Income Tax Expense Analysis | Item | 2025 H1 (HKD million) | 2024 H1 (HKD million) | | :--- | :--- | :--- | | Current – Hong Kong Tax Expense for the Period | 12.5 | 11.3 | | Current – China and Overseas Tax Expense for the Period | – | 7.6 | | Underprovision in Prior Years | 0.3 | – | | China Land Appreciation Tax | (3.0) | 78.6 | | Deferred Tax | (4.4) | (9.7) | | **Total Tax Expense for the Period** | **5.4** | **87.8** | - Provision for Hong Kong profits tax is calculated at the applicable tax rate of **16.5%**[77](index=77&type=chunk) - China Land Appreciation Tax is levied at progressive rates ranging from **30% to 60%**, except for sales of ordinary residential properties where the appreciation value does not exceed **20%** of the total deductible items[78](index=78&type=chunk) [Dividends](index=29&type=section&id=Dividends) No dividends were paid or declared by the Group during the six months ended June 30, 2025, nor have any been declared subsequent to the reporting period end - No dividends were paid or declared during the six months ended June 30, 2025, and no dividends have been declared subsequent to the end of the reporting period (2024: nil)[79](index=79&type=chunk) [Loss Per Ordinary Share Attributable to Owners of the Parent](index=18&type=section&id=Loss%20Per%20Ordinary%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the period ended June 30, 2025, the basic loss per ordinary share attributable to owners of the parent was **HKD (0.59)**, an improvement from the prior year, with no dilution adjustment as there were no potentially dilutive ordinary shares - The basic loss per ordinary share for the period ended June 30, 2025, was **HKD (0.59)** (2024: HKD (0.64))[4](index=4&type=chunk)[59](index=59&type=chunk) - The loss calculation has been adjusted for accrued distributions of **HKD 39.5 million** (2024: HKD 39.6 million) attributable to Regal Group's perpetual securities[79](index=79&type=chunk) - As the Company has no ordinary shares issued that would have a potential dilutive effect, no adjustment has been made to the basic loss per ordinary share[79](index=79&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=29&type=section&id=Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, the Group's trade receivables from customers slightly increased, with most aged within three months; the Group maintains strict control over outstanding amounts and does not have excessive credit risk concentration - Trade receivables from customers amounted to **HKD 118.0 million** (December 31, 2024: HKD 113.7 million)[79](index=79&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Within 3 months | 98.3 | 93.2 | | 4 to 6 months | 9.7 | 8.1 | | 7 to 12 months | 6.8 | 8.7 | | Over 1 year | 12.6 | 16.2 | | **Total** | **127.4** | **126.2** | | Impairment | (9.4) | (12.5) | | **Net** | **118.0** | **113.7** | - Trade receivables from customers generally have credit terms of **30 to 90 days** and are recognized and carried at their original invoice amounts less impairment[80](index=80&type=chunk) [Trade and Other Payables](index=30&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's trade payables to debtors significantly decreased, with most aged within three months - Trade payables to debtors amounted to **HKD 41.0 million** (December 31, 2024: HKD 77.1 million)[80](index=80&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Within 3 months | 37.7 | 71.2 | | 4 to 6 months | 1.2 | 5.4 | | 7 to 12 months | 1.9 | 0.1 | | Over 1 year | 0.2 | 0.4 | | **Total** | **41.0** | **77.1** | - Trade payables to debtors are non-interest bearing and generally have repayment terms within **90 days**[80](index=80&type=chunk) [Events After the Reporting Period](index=30&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, Regal Group entered into an agreement with an independent third-party buyer to dispose of its wholly-owned subsidiary (owning a London property) for a total purchase price of **GBP 19.5 million**, pending approval from the ultimate listed parent company's shareholders - On July 29, 2025, Regal Group entered into a share purchase agreement with an independent third-party buyer to dispose of its wholly-owned subsidiary (owning the property at **41 Kingsway, London, UK**) for a total purchase price of **GBP 19.5 million** (equivalent to approximately **HKD 204.1 million**)[80](index=80&type=chunk) - The completion of this transaction is subject to, among other things, the passing of relevant resolutions by the shareholders of the Group's ultimate listed parent company, Century City International Holdings Limited[80](index=80&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) This section covers the company's listed securities transactions, review of interim results, compliance with corporate governance (including the unseparated roles of Chairman and CEO), and the composition of the Board of Directors during the reporting period [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[81](index=81&type=chunk) [Review of Results](index=31&type=section&id=Review%20of%20Results) The Group's condensed consolidated financial statements for the six months ended June 30, 2025, though unaudited, have been reviewed by external auditor Ernst & Young and the Audit Committee - The Group's condensed consolidated financial statements for the six months ended June 30, 2025, are unaudited but have been reviewed by the Company's external auditor, Ernst & Young[82](index=82&type=chunk) - The Audit Committee has reviewed the Group's condensed consolidated financial statements with the Company's external auditor, including the accounting standards and practices adopted[82](index=82&type=chunk) [Corporate Governance](index=31&type=section&id=Corporate%20Governance) The Company has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited during the six months ended June 30, 2025, with the exception of the unseparated roles of Chairman and Chief Executive Officer, which is due to the practical needs of the Group's corporate operational structure - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the six months ended June 30, 2025[83](index=83&type=chunk) - The roles of Chairman and Chief Executive Officer are not segregated and are not performed by two separate individuals, which is due to the practical needs of the Group's corporate operational structure[83](index=83&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises executive and independent non-executive directors, with Mr. Lo Yuk Sui serving as Chairman and Chief Executive Officer - The Board of Directors includes executive directors and independent non-executive directors[84](index=84&type=chunk)[85](index=85&type=chunk) - Mr. Lo Yuk Sui serves as Chairman and Chief Executive Officer[85](index=85&type=chunk)

Core Viewpoint - The company anticipates a shareholder's attributable comprehensive loss of approximately HKD 613 million for the six months ending June 30, 2025, an improvement from a loss of HKD 676 million in the same period of 2024 [1] Group 1: Business Performance - The company's two main business segments are property and hotel operations [1] - The property segment has experienced a decline in revenue compared to the same period in 2024 due to a sluggish real estate market in both Hong Kong and mainland China [1] - The hotel business, conducted through Regal Hotels International Holdings Limited, has shown stable performance, with revenue contributions increasing compared to the previous period [1]

Core Viewpoint - The company expects a shareholder's attributable comprehensive loss of approximately HKD 613 million for the six months ending June 30, 2025, an improvement from a loss of HKD 676 million in the same period of 2024 [1] Group 1: Business Performance - The company's two main businesses are property and hotel operations [1] - The property segment has seen a decline in revenue compared to the same period in 2024 due to a sluggish real estate market in both Hong Kong and mainland China [1] - The hotel business, conducted through Regal Hotels International Holdings Limited, continues to perform steadily, contributing increased revenue compared to the previous period [1]