Dear Shareholders,

For the year ended 31 March 2026, we began to see signs of improvement across our core property markets after several brutal years. In Chinese Mainland, recovery is emerging, although unevenly, with higher-tier cities showing greater momentum. In Hong Kong, conditions are gradually finding a floor.

While these developments are encouraging, none of this has shown up in our numbers yet. Revenue and earnings were lower, primarily due to the expected decline in development property sales, only partially offset by stronger leasing income. Property valuation adjustments hit us again, although the declines in values began to ease in the second half. The one bright spot, shareholders’ equity remained intact, and net assets per share attributable to shareholders held up well. It matters, but we aren’t ready to start cheering.

RESILIENCE IN OUR CORE MARKETS

This was another challenging year for our property businesses in both Hong Kong and Chinese Mainland. The operating environment continues to be shaped by several powerful forces. Interest rates have remained higher for longer than many anticipated. Capital is available, but increasingly selective. At the same time, geopolitical tensions between the United States and China continue to influence investment decisions. Tariffs, technology restrictions and strategic competition are altering global capital flows and supply chains in ways that are likely to persist for years.

In China, policymakers have taken meaningful steps to support the economy and property market, including easing purchase restrictions, reducing mortgage rates and implementing measures to stimulate demand. These actions have helped stabilize transaction volumes. However, consumer and investor confidence is rebuilt over time, not overnight. That’s just how people work.

Hong Kong’s office market remains oversupplied and super competitive. Rental levels in prime locations have generally stabilized, while secondary markets remain under pressure. Retail activity has improved and residential transactions have increased, but a broad-based recovery in commercial real estate will likely be gradual.

Within our affiliated businesses, Chinney Alliance Group delivered mixed results. While its aviation systems business saw lower earnings, it continues to demonstrate significant long-term potential. Chinney Kin Wing’s foundations business remained robust in 2025, although the broader construction sector in Hong Kong weakened during the year and is expected to remain subdued in 2026.

Against this backdrop, our businesses demonstrated resilience. Teams across the Group are taking decisive actions to navigate current conditions, restore profitability, and position for long-term growth.

ARTICULATING OUR VISION

Here’s the reality check: many of the challenges facing the property sector today are not merely cyclical. Some are structural. Markets evolve. Industries change. Successful companies adapt. That’s why we’ve made the call to pursue a broader and more ambitious vision for the Group.

Our strategy comes down to two things:

• To maximize value and returns from our existing property and related businesses; and

• To leverage our capabilities to develop complementary businesses that we believe can generate durable long-term shareholder value.

As the property industry evolves, new opportunities are emerging. We are increasingly deploying digital technologies to improve efficiency, strengthen asset management capabilities and enhance competitiveness.

At the same time, we are making deliberate moves into adjacent sectors where we see long-term potential, including intelligent automation, AI infrastructure, and digital solutions. These areas are attracting significant investment globally and are becoming increasingly important to the future competitiveness of businesses across industries.

Making this work means changing how we operate, upgrading our talent, and being more disciplined about where we put our capital. We’ve already started:

• Optimizing performance and returns across our property portfolio;

• Rationalizing business units to improve efficiency and strengthen earnings;

• Actively evaluating investment opportunities in strategic growth sectors; and

• Strengthening internal systems, governance and operating disciplines to support execution.

Transformation is never accomplished through vision alone . It requires consistent execution over time . We believe these initiatives will strengthen the Group’s competitive position and create new avenues for long-term growth . I look forward to updating shareholders on our progress throughout the coming year.

STRENGTHENING OUR LEADERSHIP TEAM

A strategy is only as good as the people responsible for executing it. During the year, we strengthened our leadership team to ensure we have the depth of experience and capability required for the opportunities and challenges ahead.

Mr. Raymond Chow joined the Group as Managing Director with responsibility for enhancing the performance of our existing businesses while helping drive expansion into new growth areas. Raymond brings extensive experience across the Hong Kong property sector, as well as expertise in complex operating and corporate environments.

We also welcomed Mr. Winfred Fan as Finance Director. Having served as an Independent non-Executive Director since 2019, Winfred assumed an executive role during the year. His financial expertise, combined with his experience in technology-related businesses, will be valuable as we prepare the Group for an increasingly digital and AI-driven future.

In addition, Mr. Donald Lam has continued to make strong progress at Hon Kwok Land, improving portfolio performance and enhancing shareholder value following his transition to Managing Director.

LOOKING FURTHER AHEAD

Last year I said we looked like we’d stabilized on revaluation losses and trading performance. Broadly speaking, that assessment remains valid.

While geopolitical tensions have intensified in various parts of the world, economic conditions have evolved largely as anticipated.

China’s policy measures have helped provide stability during a period of uncertainty, supporting confidence in both the Mainland and Hong Kong economies. We expect the Mainland’s growth to stay on a steady path. Better external trade and continued policy support should help consumer confidence recover gradually.

Hong Kong’s commitment to infrastructure is going to pay off for us down the road. And Hong Kong keeps cementing its place as a top global financial center. There’s a real sense of long overdue optimism building across the Territory right now.

Technology and data infrastructure are going to keep pulling in capital. Every business is going to have to engage with this next wave of innovation, and we intend to be right in the middle of it. We’re not waiting around for the future to happen to us. We’re going after it.

The future will belong to organizations that are adaptable, disciplined and willing to invest through periods of uncertainty. Our vision reflects that belief, and we are committed to building the Group accordingly.

APPRECIATION

On behalf of the Board, I would like to thank my fellow Directors for their guidance and stewardship during the year. I also extend my sincere appreciation to our management team and employees for their commitment, professionalism and hard work in a demanding environment.

Finally, I would like to thank our shareholders, customers and business partners for their continued trust and support.

Our focus remains unchanged: protecting and growing shareholder value over the long term. We approach the future with confidence, discipline and a clear sense of purpose.

James Sing-Wai Wong
Chairman
Hong Kong, 29 June 2026