Interim Financial Statements for the Quarter ended 31st December 2025

Revenue from contracts with customers

Cost of Sales

2025

Unaudited Rs.

503,415,322

(157,408,230)

2024

Unaudited Rs.

495,857,916

(166,277,012)

Variance

%

2%

(5%)

2025

Unaudited Rs.

1,250,429,650

(431,706,374)

2024

Unaudited Rs.

1,187,729,789

(431,557,888)

Variance

%

5%

0%

31 March 2025 Audited

Rs.

1,816,868,919

(597,013,218)

Gross Profit

346,007,092

329,580,904

5%

818,723,276

756,171,901

8%

1,219,855,701

Other Income and Gains

1,158,470

1,595,975

(27%)

3,517,627

40,890,678

(91%)

80,731,982

Administrative Expenses

(160,035,968)

(146,970,762)

9%

(435,605,343)

(381,387,628)

14%

(540,068,740)

Other Operating Expenses

(129,155,167)

(122,985,101)

5%

(372,607,053)

(366,197,555)

2%

(492,330,929)

Selling and Marketing Expenses

(11,776,482)

(17,202,679)

(32%)

(41,019,486)

(51,422,305)

(20%)

(64,402,003)

Operating profit/ (Loss)

46,197,945

44,018,337

(5%)

(26,990,979)

(1,944,909)

1288%

203,786,011

Finance Income

595,105

5,882,606

(90%)

6,646,129

8,478,061

(22%)

14,218,101

Finance Costs

(70,663,099)

(93,939,974)

(25%)

(226,113,737)

(307,651,109)

(27%)

(395,439,841)

Share of Loss of Investment in Associate

27,358,374

-

0%

41,730,314

(5,778,352)

(822%)

24,754,911

Loss Before Tax

3,488,325

(44,039,031)

(108%)

(204,728,273)

(306,896,309)

(33%)

(152,680,818)

Income Tax Expenses

(1,337,961)

5,688,732

(124%)

161,729,707

(182,441)

(88748%)

(34,234,747)

Loss for the period/ year

2,150,364

(38,350,299)

(106%)

(42,998,566)

(307,078,750)

(86%)

(186,915,565)

Loss Attributable to;

Equity Holders of the Parent

17,929,305

22,406,189

(20%)

41,234,530

(213,540,894)

(119%)

(163,704,249)

Non-Controlling Interest

(15,778,941)

(60,756,489)

(74%)

(84,233,096)

(93,537,857)

(10%)

(23,211,316)

2,150,364

(38,350,299)

(42,998,566)

(307,078,751)

(186,915,565)

Other Comprehensive Income/ (Loss)

Other comprehensive income not to be reclassified to profit or loss in subsequent periods

Revaluation of land and building

Income tax effect on revaluation of land and buildings

Actuarial gain/ (loss) on defined benefit plan Income tax effect on defined benefit plan Share of other comprehensive income of

associate

-

-

-

-

1,232,382

-

-

-

-

-

-

-

-

-

1,232,382

-

-

-

-

-

135,770,004

(40,731,002)

(790,397)

237,119

1,130,884

Total Other Comprehensive Income/ (Loss) for the period/ year, net of tax

1,232,382

-

1,232,382

-

95,616,608

Total Comprehensive Loss for the period/

year, net of tax

3,382,746

(38,350,299)

(109%)

(41,766,184)

(307,078,750)

(86%)

(91,298,957)

Total Comprehensive Loss Attributable to;

Equity Holders of the Parent

19,161,687

22,406,189

(14%)

42,466,912

(213,540,894)

(120%)

(102,661,843)

Non-Controlling Interest

(15,778,938)

(60,756,489)

(74%)

(84,233,096)

(93,537,857)

(10%)

11,362,887

3,382,746

(38,350,299)

(41,766,184)

(307,078,750)

(91,298,955)

Loss per share - Basic (Rs.)

0.03

0.08

0.08

(0.75)

0.31

Revenue from contracts with customers

Cost of Sales

2025

Unaudited Rs.

175,332,543

(43,091,684)

2024

Unaudited Rs.

157,972,470

(50,521,374)

Increase / (Decrease) %

11%

(15%)

2025

Unaudited Rs.

412,816,358

(127,910,169)

2024

Unaudited Rs.

381,284,835

(134,667,962)

Increase / (Decrease) %

8%

(5%)

31 March 2025 Audited

Rs.

596,721,807

(178,920,171)

Gross Profit

132,240,860

107,451,096

23%

284,906,188

246,616,873

16%

417,801,636

Other Income and Gains

496,836

49,351,002

(99%)

9,589,784

76,888,696

(88%)

77,923,163

Administrative Expenses

(59,867,717)

(57,200,145)

5%

(162,092,169)

(137,688,001)

18%

(193,316,136)

Other Operating Expenses

(34,226,836)

(36,558,583)

(6%)

(99,065,778)

(102,089,350)

(3%)

(143,458,636)

Selling and Marketing Expenses

(7,806,094)

(8,136,446)

(4%)

(23,742,401)

(21,597,169)

10%

(27,211,390)

Operating Profit/ (Loss)

30,837,048

54,906,923

(44%)

9,595,624

62,131,050

(85%)

131,738,636

Finance Income

10,119,420

13,898,326

(27%)

32,413,613

31,842,543

2%

45,062,725

Finance Costs

(32,589,185)

(43,562,190)

(25%)

(98,783,943)

(147,721,526)

(33%)

(184,535,126)

Share of profit/ (Loss) of Investment in Associate *

27,358,374

-

41,730,314

(5,778,352)

(822%)

24,754,911

Profit/ (Loss) Before Tax

35,725,658

25,243,059

42%

(15,044,392)

(59,526,284)

(75%)

17,021,146

Income Tax Reversal / (Expenses)

(1,337,961)

5,688,732

161,523,841

-

(34,756,413)

Profit/ (Loss) for the period/ year

34,387,697

30,931,791

11%

146,479,448

(59,526,284)

(346%)

(17,735,267)

Other Comprehensive Income/ (loss)

Other comprehensive income not to be reclassified to profit or loss in subsequent Revaluation Gain on Land and Building Income Tax effect on Revaluation of Land and Building

Actuarial Gain on Defined Benefit Plan Income Tax effort on defined benefit plan

Share of other comprehensive income of associate

-

-

-

-

1,232,382

-

-

-

-

-

-

-

-

-

1,232,382

-

-

-

-

-

24,318,367

(7,295,511)

(1,490,710)

447,213

1,130,884

Total Other Comprehensive Income for the

period/ year, net of tax

1,232,382

-

1,232,382

-

17,110,244

Total Comprehensive Income/ (Loss) for the period/ year, net of tax

35,620,079

30,931,791

15%

147,711,830

(59,526,284)

(348%)

(625,024)

Loss per share - Basic (Rs.)

0.06

0.11

0.27

(0.21)

(0.03)

Hikkaduwa Beach Resort PLC and Its Subsidiary

STATEMENT OF FINANCIAL POSITION

Group

Company

As at

ASSETS

Non Current Assets Property, Plant & Equipment Investment Properties

Right-of-use Assets Investment In Associate Investment in Subsidiary

Other receivables - related parties

31 Dec 2025

31 Mar 2025

31 Dec 2025

31 Mar 2025

Unaudited

Audited

Unaudited

Audited

Rs.

Rs.

Rs.

Rs.

7,007,931,787

7,112,093,821

1,592,863,401

1,611,657,258

639,266,966

639,266,966

639,266,966

639,266,966

170,691,369

172,210,875

170,691,369

172,210,875

2,312,519,703

2,269,557,006

2,312,519,703

2,269,557,006

-

-

1,907,939,435

1,990,739,335

-

-

429,186,983

379,186,983

10,130,409,825

10,193,128,668

7,052,467,857

7,062,618,422

Current Assets

Inventories

Trade and Other Receivables Other Current Financial Assets Tax Receivables

Advances and Prepayments

Cash and Bank Balances

58,161,585

52,268,748

16,736,408

15,606,458

155,715,183

306,010,764

173,590,509

178,303,682

15,934,500

13,350,100

15,934,500

13,350,100

5,667,300

5,549,477

5,245,356

5,245,355

107,280,428

29,097,422

11,072,934

6,748,738

75,212,558

165,392,824

22,778,022

105,533,104

417,971,554

571,669,335

245,357,729

324,787,436

TOTAL ASSETS

10,548,381,379

10,764,798,003

7,297,825,586

7,387,405,859

EQUITY AND LIABILITIES

Capital and Reserves

Stated Capital

5,526,201,686

5,526,201,686

5,526,201,686

5,526,201,686

Revaluation Reserve

2,271,510,068

2,270,084,996

666,481,489

665,056,417

Merger Reserve

332,134,791

332,134,791

332,134,791

332,134,791

Accumilated Losses

(3,720,218,973)

(3,747,876,337)

(1,312,956,907)

(1,459,243,664)

Equity attributable to equity holders of the pare

4,409,627,572

4,380,545,137

5,211,861,060

5,064,149,231

Non-controlling Interest

962,471,852

942,342,235

-

-

Total Equity

5,372,099,424

5,322,887,371

5,211,861,060

5,064,149,231

Non-Current Liabilities

Interest Bearing Loans and Borrowings Retirement Benefit obligation

Deferred Tax Liability

Other Payables - Related Parties

2,474,959,556

2,391,540,247

764,239,555

944,586,177

35,681,646

33,797,247

24,076,955

23,103,497

1,288,823,465

1,450,553,172

386,477,427

548,001,268

272,930,109

325,430,109

272,930,109

325,430,109

4,072,394,776

4,201,320,775

1,447,724,046

1,841,121,050

Current Liabilities

Trade and Other Payables

Interest Bearing Loans and Borrowings Contract Liabilities

515,246,208

503,610,973

145,152,266

128,277,336

522,167,037

654,851,613

428,692,285

277,010,102

66,473,934

82,127,271

64,395,930

76,848,141

1,103,887,179

1,240,589,857

638,240,481

482,135,579

TOTAL EQUITY & LIABILITIES

10,548,381,379

10,764,798,003

7,297,825,586

7,387,405,859

………..………………

Kaushika Ranasinghe

Group Head of Finance

………..………………

P. C. B. Talwatte

Director/ Group CEO

………..………………

P. L. P Withana

Director

15 Feb 2026

Colombo

Hikkaduwa Beach Resort PLC and Its Subsidiary

STATEMENT OF CHANGES IN EQUITY

Attributable to Equity holders of the Parent

Stated Capital

Revaluation

Reserve

Retained

Earnings

Merger

Total

Reserve

Rs

Rs

Rs

Rs

Rs

Non-Controlling

Interest

Rs

Total

Rs

Balance as at 01 April 2024 4,624,023,566 2,208,273,419 (3,536,381,151) 332,134,791 3,628,050,625 266,490,557 3,894,541,181

Issue of Ordinary Shares under Right Issue 902,178,120 - - - 902,178,120 - 902,178,120 Adjustment on changes to non-controlling interest in subsidiaries - (545,930,170) 478,321,022 - (67,609,148) 685,076,168 617,467,020 Total comprehensive Loss for the period, net of tax - - (213,540,894) - (213,540,894) (93,537,857) (307,078,750)

Balance as at 31 December 2024 5,526,201,686 1,662,343,249 (3,271,601,023) 332,134,791 4,249,078,704 858,028,868 5,107,107,571

Balance as at 01 April 2025 5,526,201,686 2,270,084,996 (3,747,876,337) 332,134,791 4,380,545,136 942,342,235 5,322,887,371

Adjustment on changes to non-controlling interest in subsidiaries - - (13,384,476) - (13,384,476) 104,362,713 90,978,237 Total comprehensive Loss for the period, net of tax - - 41,234,530 - 41,234,530 (84,233,096) (42,998,566) Share of Other comprehensive income of associate,net of taxes - 1,425,072 (192,691) - 1,232,382 - 1,232,382

Balance as at 31 December 2025 5,526,201,686 2,271,510,068 (3,720,218,973) 332,134,791 4,409,627,572 962,471,852 5,372,099,424

Stated

Capital

Rs.

Revaluation

Reserves

Rs.

Merger

Reserve

Rs.

Retained

Earnings

Rs.

Total

Rs.

Balance as at 01 April 2025

Total comprehensive Loss for the period, net of tax

Share of Other comprehensive income of associate,net of taxes

5,526,201,686

-

-

665,056,417

-1,425,072

332,134,791

-

-

(1,459,243,664)

146,479,448

(192,691)

5,064,149,230

146,479,448

1,232,382

Balance as at 31 December 2025

5,526,201,686

666,481,489

332,134,791

(1,312,956,907)

5,211,861,060

2025

2024

Unaudited

Unaudited

Rs.

Rs.

Cash flows from/(used in) operating activities

Loss before income tax expense

(204,728,273)

(306,896,309)

Adjustments for :

Depreciation

137,899,701

146,812,915

Provision for defined benefit plans

4,494,158

4,754,014

Depreciation of right-of-use assets

1,519,506

1,519,506

Finance income

(3,451,942)

(33,586,569)

Finance costs

226,364,422

332,759,617

Dividend Income

(860,472)

(538,262)

Fair value (gain)/ loss on financial assets at fair value

(2,584,400)

-

Impairment of trade receivables

(70,171)

-

(Gain)/ Loss on disposal of subsidiary's shares

-

(48,066,175)

(Gain)/ loss on disposal of property plant & equipment

-

(26,963,449)

Share of (profit)/ loss from investment in associate

(41,730,314)

5,778,352

Operating profit/ (loss) before working capital changes

116,852,214

75,573,640

Increase in inventories

(5,892,837)

(5,468,955)

(Increase)/ decrease in trade and other receivables

71,966,954

(25,538,311)

(Increase)/ decrease in advances and prepayments

(78,183,006)

560,246

Increase/ (decrease) in contract liabilities

(15,653,337)

219,180,865

Increase/ (decrease) in trade and other payables

37,416,310

(219,843,341)

Cash flow from/ (used) in operations

126,506,298

44,464,143

Finance cost paid

(206,965,664)

(260,496,953)

Defined benefit plan cost paid

(2,609,760)

(4,506,843)

Net cash flow from/ (used) in operating activities

(83,069,126)

(220,539,651)

Cash flows from/(used in) investing activities

Acquisition of property, plant and equipment

(33,737,667)

(12,219,446)

Net proceed from disposal of subsidiary's shares

90,978,137

500,993,211

Proceeds from sale of fixed assets

-

42,150,000

Net financed to related parties

1,280,822

94,412,195

Dividend received

860,472

538,262

Finance income received

1,920,435

19,288,529

Net cash flow used in investing activities

61,302,200

645,162,751

Cash flows from/(used in) financing activities

Proceeds from interest bearing loans and borrowings

263,500,000

964,899,073

Repayment of interest bearing loans and borrowings

(208,227,868)

(1,351,286,462)

Proceeds from issue of shares

-

133,558,079

Proceeds from shares issue to non-controlling shareholders

-

116,473,810

Net Finance from/ (to) related parties

(19,148,072)

336,278,928

Net cash flows from/ (used in) financing activities

36,124,060

199,923,428

Net increase / (decrease) in cash and cash equivalents

14,357,134

624,546,526

Cash and cash equivalents at the beginning of the period

(55,749,472)

(329,929,512)

Cash and cash equivalents at the end of the period (note A)

(41,392,338)

294,617,014

Note A

Analysis of Cash and cash equivalents

Cash and Bank Balances

75,212,558

426,423,697

Short term deposits with original maturity less than three months

-

30,824,311

Bank Overdrafts

(116,604,897)

(162,630,994)

Total cash and cash equivalents

(41,392,338)

294,617,014

2025

2024

Unaudited

Unaudited

Rs.

Rs.

(15,044,392)

(59,526,285)

29,917,992

33,824,324

2,700,000

2,700,000

1,519,506

1,519,506

(28,968,741)

(31,304,281)

98,783,943

147,721,526

(860,472)

(538,262)

(2,584,400)

-

(183,136)

-

(8,178,237)

(48,066,175)

-

(26,963,449)

(41,730,314)

5,778,352

35,371,749

25,145,256

(1,129,950)

(5,457,620)

(45,103,692)

(54,059,881)

(4,324,197)

(1,796,029)

(12,452,213)

107,135,531

(35,625,070)

(108,717,331)

(63,263,373)

(37,750,074)

(79,952,025)

(108,114,307)

(1,726,542)

(2,609,770)

(144,941,940)

(148,474,150)

(11,124,135)

(2,261,665)

90,978,137

500,993,211

-

42,150,000

27,964,852

94,412,195

860,472

538,262

1,003,888

1,841,813

109,683,215

637,673,815

100,000,000

964,899,073

(137,903,798)

(901,331,458)

-

133,558,079

-

-

(18,831,918)

(106,391,678)

(56,735,716)

90,734,016

(91,994,441)

579,933,682

23,642,319

(207,084,929)

(68,352,122)

372,848,753

22,778,022

395,278,294

-

-

(91,130,144)

(22,429,542)

(68,352,122)

372,848,753

Hikkaduwa Beach Resort PLC and Its Subsidiary

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1

Corporate Information

Hikkaduwa Beach Resort PLC, is a public limited liability company incorporated and domiciled in Sri Lanka listed on the

Colombo Stock Exchange.

2

Interim Condensed Financial Statements

The financial statements for the quarter ended 31 December 2025 includes "the Company" referring to Hikkaduwa Beach

Resort PLC as the holding company and "the Group" referring to the companies whose accounts have been consolidated therein.

3

Approval of Financial Statements

The interim condensed financial statements of the Group and the Company for the quarter ended 31 December 2025 were

authorised for issue by the Board of Directors on 15 February 2026.

4

Basis of preparation and Group's accounting policies

The interim condensed consolidated financial statements for the quarter ended 31 December 2025 have been prepared in accordance with LKAS 34 Interim Financial Reporting.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 March 2025.

The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.

5

Events Subsequent to the Reporting Date

There have been no events subsequent to the reporting date, which require disclosure in the interim condensed financial

statements.

6

Contingencies

There has not been a significant change in the nature of the contingent liabilities, which were disclosed in the Annual Report for the year ended 31 March 2025.

7

Deferred Tax

The Company reviewed the deferred tax position during the quarter and have appropriately adjusted amounts to reflect the

position as of the period end.

Hikkaduwa Beach Resort PLC and Its Subsidiary

NOTES TO THE INTERIM FINANCIAL STATEMENTS

8

Share information

8.4

Stated Capital

Quarter Ended

2025

Date Price (Rs.)

Quarter Ended 2024

Date Price (Rs.)

26.11.2025 4.70

03.11.2025 3.40

31.12.2025 4.10

07.10.2024 4.30

25.10.2024 3.30

31.12.2024 3.50

31 Dec 2025

31 Mar 2025

Number Rs.

Number

Rs.

542,663,531 5,526,201,689

284,898,354 4,624,023,566

257,765,177 902,178,123

542,663,531 5,526,201,689

542,663,531 5,526,201,689

8.1

Basic Profit / (Loss) Per Share (Rs.)

Quarter Ended

Quarter Ended

2025

0.03

0.06

2024

0.08

0.11

Group

Company

8.2

Net Assets Per Share (Rs.)

As at

As at

2025

8.13

9.60

2024

8.07

9.33

Group

Company

8.3

Market Price Per Share (Rs.)

Highest

Lowest

Last Traded

As at

Issued and fully-paid - ordinary shares

As at beginning of the year

Issue of shares

As at end of the year/ period

8.5

The percentage of the shares held by public as at 31 December 2025 is 36.0790% (31 December 2024 was 24.562%) and the number of public

shareholders was 4,542 (As at 31 December 2024 was 3,535).

Hikkaduwa Beach Resort PLC and Its Subsidiary

NOTES TO THE INTERIM FINANCIAL STATEMENTS

8.6

The number of shares held by the Board of Directors and CEO are as follows,

Mr. S. A. Ameresekere

Seylan Bank PLC/ Mr. R. Seneviratne

Mr. P. V. S. Premawardhana

Mr. S. M. A. D. S Sugathapala

Mr. P. L. P Withana

Mr. P. N Mahawatte

Mr. S. P. S. Ranatunge

-

212,749

-

464,394

-

-

-

-

212,749

-

464,394

-

-

-

8.7

Twenty Largest Ordinary Shareholders of the Company as follows;

Serial

No.

Shareholder

As at 31 Dec 2025

No of Shares

%

1

Citrus Leisure PLC

346,164,134

63.79%

2

Mr. K.V. Hewavitarne

10,500,000

1.93%

3

Hatton National Bank PLC/Ravindra Erle Rambukwelle

5,425,000

1.00%

4

Mr. A.M. Weerasinghe

5,000,000

0.92%

5

Citizens Development Business Finance PLC/S.Vasudevan

5,000,000

0.92%

6

Mr. T.G. Thoradeniya

4,080,156

0.75%

7

Mrs. K.M. Goonewardene

3,647,054

0.67%

8

DFCC Bank PLC/B.R. Fernando

3,122,532

0.58%

9

Mr. A. Lukmanjee

2,858,836

0.53%

10

Mr. R.E. Rambukwelle

2,847,600

0.52%

11

Dialog Finance PLC/S.D.M. Hemajith & R.A.N. Udani

2,287,304

0.42%

12

Emarketingeye (Pvt) Ltd

2,285,181

0.42%

13

Merchant Bank Of Sri Lanka & Finance PLC 01

2,247,143

0.41%

14

Seylan Bank PLC/Gladstone Capital (Private) Limited

2,085,436

0.38%

15

Mr. W.M.L. Tissera

1,976,497

0.36%

16

Mr. M.A.M. Azlam

1,976,266

0.36%

17

Mr. C. Yatawara

1,622,464

0.30%

18

Mr. H.P.K.C.J. Kumara

1,610,000

0.30%

19

Mr. K.A.D.D. Perera

1,500,000

0.28%

20

Seylan Bank PLC/Phantom Investments (Pvt) Ltd

1,458,493

0.27%

Sub Total

407,694,096

75.13%

Others

134,969,435

24.87%

Total

542,663,531

24.87%

NAME OF COMPANY

Hikkaduwa Beach Resort PLC

LEGAL FORM

Public Quoted Company with limited liability Incorporated in Sri Lanka.

NOMINATION COMMITTEE

Mr. P.N. Mahawatte (Chairman)

Mr. S.P.S. Ranatunga

Mr. S.A. Ameresekere

RELATED PARTY TRANSACTIONS REVIEW COMMITTEE

Mr. P.L.P. Withana (Chairman)

Mr. S.P.S. Ranatunga

Mr. S.A. Ameresekere

STOCK EXCHANGE LISTING

The issued ordinary shares of the Company are listed on Colombo Stock Exchange of Sri Lanka.

COMPANY REGISTRATION NO.

PB 4520 PQ

COMPANY SECRETARIES

P W Corporate Secretarial (Pvt) Ltd

No.3/17, Kynsey Road

Colombo 08

REGISTERED OFFICE

No: 56/1, Kynsey Road, Colombo 08

Telephone : 0117-755-388

Fax 0115 470000

E-mail : direct@citrusleisure.com

Website : https://www.citrusleisure.com

AUDITORS

Ernst & Young

Chartered Accountants

Rotunda Towers

No. 109, Galle Road

Colombo 03

BANKERS

Sampath Bank PLC

Commercial Bank of Ceylon PLC

Pan Asia Banking Corporation PLC

Nations Trust Bank PLC

Hatton National Bank PLC

People's Bank

National Development Bank PLC

NDB Wealth Management Ltd

BOARD OF DIRECTORS

Mr. S. P. S. Ranatunga (Chairman)

Mr. S.A. Ameresekere

Mr. P. L. P Withana

Mr. R.G Seneviratne

Mr. S. M. A. D. S Sugathapala

Mr. P. C. B. Talwatte

Mr. R.M. Mahawatte

CHIEF EXECUTIVE OFFICER

Mr. P. C. B. Talwatte

SUBSIDIARY

Waskaduwa Beach Resort PLC (PB 4242 PQ )

INVESTOR RELATIONS

Please contact Group Head of Finance Ms. Kaushika Ranasinghe

+94775700473

kaushika@citrusleisure.com

REMUNERATION COMMITTEE

Mr. P.N. Mahawatte (Chairman)

Mr. P.L.P. Withana

Mr. S.A. Ameresekere

AUDIT COMMITTEE

Mr. P.L.P. Withana (Chairman)

Mr. S.P.S. Ranatunga

Mr. P.N. Mahawatte