Interim Report 2025-2026

2025/2026

INTERIM REPORT

中期報告

Stock Code 00480

VIDEO PHOTO

Contents

Business and Financial Highlights

Apr

• Opening of the Group's first Corporate Gallery in Shanghai

• VILLA LUCCA, low-density seaview luxury residences on Tai Po hillside, unveiled onsite furnished units

• The 18thDiscovery Bay Beach Egg Hunt cum Carnival set record-breaking participation

May

• Launched Discovery Bay Pet-friendly Bus Service

• DBee Oasis, Hong Kong's first urban oasis project for pollinators, was officially launched

Jun

• Announced 2024/25 Annual Results

• HKRI Taikoo Hui welcomed The Louis, a bespoke concept landmark by Louis Vuitton

Jul

• TheNextwave XX25 Beach Music Festival, Hong Kong's largest beach music festival, returned to Discovery Bay

• Hotel Kanronomori in Hokkaido was added to the Group's hospitality portfolio

Aug

• Conducted the 2025 Annual General Meeting

• All sold units of River One, Shanghai, were handed over to purchasers

Sep

• Unveiled the sales gallery and show flats of Sienna One, in Jiaxing, Zhejiang

• Occupation Permit for Discovery Bay Phase 19-1 and 19-2B was obtained

• Completed the disposal of the Group's entire interests in public car park and various car parking spaces at Tuen Mun Central Square

• Discovery Bay's inaugural Wellness Day was successfully held

  FINANCIAL HIGHLIGHTS Six months ended 30 September

  Year ended 31 March

  	2025 HK$'M	2024 HK$'M	2025 HK$'M
  Results
  Revenue	1,925.5	852.5	1,753.4
  Loss attributable to owners of the Company	(478.6)	(474.3)	(786.0)
  Basic loss per share (HK cents)	(32.2)	(31.9)	(52.9)

  30 September 31 March

  	2025 HK$'M	2024 HK$'M	2025 HK$'M
  Financial Position
  Total assets	43,264.0	43,029.2	43,192.8
  Total liabilities	18,290.1	17,097.1	17,912.9
  Equity attributable to owners of the Company	22,210.9	23,209.2	22,475.9
  Net asset value per share (HK$)	15.0	15.6	15.1

  Management Discussion and Analysis

  The Board of Directors (the "Board") of HKR International Limited (the "Company") announces the results of the Company and its subsidiaries (the "Group") for the six months ended 30 September 2025 (the "Period").

  INTERIM RESULTS

  The Group's revenue for the Period amounted to HK$1,925.5 million, which increased by 125.9% from HK$852.5 million in the last corresponding period primarily owing to sales completion of a new project, River One in Chinese Mainland which generated sales revenue of HK$1,125.8 million during the Period while no completion of new projects in the last corresponding period. The Group posted an increase of 283% in underlying profit of HK$45.4 million from underlying loss of HK$24.8 million in last corresponding period. With the inclusion of the Group's attributable share of net unrealised losses on fair value change of investment properties held by the Group and its joint venture amounting to HK$352.7 million and non-recurring asset impairment provisions of HK$171.3 million on the property development projects held by the Group and its joint venture, the Group recorded a loss attributable to owners of the Company of HK$478.6 million, a slight increase of HK$4.3 million from a loss attributable to owners of the Company of HK$474.3 million for the last corresponding period.

  INTERIM DIVIDEND

  The Board has resolved not to declare any interim dividend to its shareholders for the Period. There was also no interim dividend paid by the Company to its shareholders for the last corresponding period.

  BUSINESS REVIEW

  (Save as otherwise stated below, all projects and operations are 100% owned by the Group)

  PROPERTY DEVELOPMENT AND INVESTMENT

  The Group's revenue from property development and investment for the Period, including proportionate shares of joint ventures and associates of HK$690.3 million, was HK$2,206.9 million. The contribution of property development and investment in the Period, including proportionate shares of joint ventures and associates of HK$92.7 million, totalled HK$19.6 million.

  Property Development

  Hong Kong

  During the Period, Hong Kong's primary residential property market demonstrated moderate resilience, underpinned by a combination of policy adjustments, easing interest rates, and a revival in buyer demand. Despite macroeconomic headwinds surrounding U.S. tariffs and unsold inventory exerting pressure on prices, competitive pricing in primary sales coupled with mortgage rates falling below 3%, have provided a relatively stable foundation for the real estate market.

  Investor sentiment in residential properties was further buoyed by the reduction of the transaction price threshold from HK$50 million to HK$30 million in the New Capital Investment Entrant Scheme, which is expected to benefit the luxury housing segment.

  The Group's flagship project in Discovery Bay ("DB"), in which the Group holds a 50% interest, continued to advance under the DB 2.0 Blueprint during the Period. Under the Master Plan 7.0E, the residential development in DB North will add over 1.3 million square feet of gross floor area ("GFA"), delivering more than 1,400 units within a green setting featuring a central park. In regard to the first phase of this hillside development, comprising 320 units, an occupation permit was obtained in September 2025, and sales are tentatively scheduled in the first quarter of 2026.

  The Town Planning Board has approved future residential developments at DB Area 6f, offering panoramic sea views, and DB Area 10b, featuring a 350-metre waterfront promenade adjacent to Lantau Yacht Club ("LYC"), an international yacht club, solidifying the Group's future development. Studies for these residential developments are progressing and will be integrated into a revised master plan for submission to the government.

  As part of our commitment to building a better community under the DB 2.0 Blueprint, enhancement works at Discovery Bay Golf Club ("DBGC") and Club Siena are underway. To offer diverse indoor and outdoor leisure and sporting facilities, a new multi-recreation complex is also under construction, with main contract works expected to commence in the fourth quarter of 2025. For the master plan to expand the site area for Discovery Bay International School and ESF Discovery College, official government approval is anticipated in the first quarter of 2026, paving the way for enhanced education facilities in DB.

  To cultivate a distinct resort lifestyle and attract potential homebuyers seeking quality residences, DB has been evolved into a vibrant community with a variety of events and amenities catering to diverse customer profile. During the Period, signature events include Hong Kong's largest beach music event, "TheNextwave XX25 Beach Music Festival", alongside iconic family-friendly events "DB Easter Egg Hunt on the Beach" and "DB Summer Splashtopia" brought energy and excitement to the community. A large range of sports events, including the "Action SPRINT Trail Series, DB", "DB Open Water Race", "ITF Beach Tennis World Tour", as well as the regular Sunday Markets, new initiatives of DB Wellness Day and the popular Pet Bus Service, have further enriched the unique resort-style experience for both residents and visitors.

  VILLA LUCCA, a luxury residential project in Tai Po (a 40:60 joint venture with Hysan Development Company Limited), continued to record solid local demand while attracting heightened interest from Chinese Mainland and overseas buyers.

  The Hollywood Road and Upper Lascar Row project is being developed into a premium serviced apartments, comprising approximately 26,500 square feet of GFA with 55 units. Construction is scheduled for completion by mid-2026.

  The Group's residential projects in Hong Kong are summarised below:

  Projects Status as of 30 September 2025

  Poggibonsi, DB

  (50% owned)

  • Total units: 196

  • Units sold: 196 (1 sold during the Period)

  • Sales proceeds generated during the Period: HK$34 million

  • Revenue of 1 sold unit recognised during the Period

  IL PICCO, DB

  (50% owned)

  VILLA LUCCA, Tai Po

  (40% owned)

  • Total units: 21 garden houses

  • Units sold: 11 (1 sold during the Period)

  • Sales proceeds generated during the Period: HK$49 million

  • Revenue of 1 sold unit recognised during the Period

  • Total units: 262

  • Units sold: 139 (27 sold during the Period)

  • Sales proceeds generated during the Period: HK$815 million

  • Revenue of 28 sold units recognised during the Period

    Chinese Mainland

    During the Period, the Central Government continued to provide policy support to the real estate sector through the relaxation of restrictions and favourable mortgage conditions. Although these measures have helped to stabilise the market, the recovery remained gradual and uneven across cities.

    The Group continues to focus on addressing market shifts by prioritising major cities, premium products and agile marketing initiatives. It is advancing a diversified sales strategy, complemented by selective light asset management portfolios, with investment decisions guided by a disciplined and prudent approach.

    Sienna One, a premium apartment development in Jiaxing, achieved topping-out stage in May 2025. The sales gallery and four fully furnished show flats were unveiled in September 2025, with the first phase of sales scheduled in the fourth quarter of 2025.

    At IN One, an upscale low-density project in Hangzhou, occupancy for all sold units commenced in April 2024. As of 30 September 2025, cumulative sales proceeds totalled approximately RMB216 million.

    At River One, the low-density residences in Shanghai, the handover of all sold units was completed by the end of August 2025. As of 30 September 2025, cumulative sales proceeds totalled approximately RMB1,238 million.

    The Group's current key Chinese Mainland residential projects are:

    Projects GFA (sq. ft.) Status as of 30 September 2025 Jiaxing, Zhejiang

    Sienna One 1,415,000 ‧ 727 residential units (plot ratio of 2.1)

    • Structure topping-out completed in May 2025

    • Sales gallery and show flats unveiled in September 2025

    • First phase is scheduled to launch in the fourth quarter of 2025

      Hangzhou, Zhejiang

IN One 430,000 ‧ 295 residential units (plot ratio of 1.2)

River One 350,000 ‧ 262 residential units (plot ratio of 1.1)

Hong Kong

During the Period, the office and retail markets remained under pressure, with modest price declines highlighting a slower than anticipated recovery. Local consumption was weighed down by fluctuating economic conditions, a strong currency, evolving consumer behavior, the rising trend of Chinese Mainland-bound tourism.

Tenant retention remains a cornerstone of the Group's leasing strategy. In response to the changing market conditions and increasingly discerning consumer preferences, the Group is evolving beyond conventional landlord-tenant relationships to cultivate collaborative partnerships that proactively support tenants' success. This approach will enable sustained occupancy and foster long-term, mutually beneficial relationships.

The Group's investment properties in DB (in which the Group maintains a 50% interest), comprising DB Plaza and its extension along with DB North Plaza, recorded an average occupancy rate of approximately 78% during the Period. The Group continues to identify new business opportunities through tenant reconfiguration, enhancing a diverse mix of F&B and retail outlets tailored to reflect the community's evolving lifestyle preferences.

CDW Building in Tsuen Wan maintained an average occupancy rate of approximately 86%. Amid a notable downturn in the retail market, retail sales and foot traffic are pressured across the industry. The 8½ retail arcade demonstrated commendable resilience, achieving an average occupancy rate of 89%, a noteworthy achievement in the current challenging climate.

The United Daily News Centre in To Kwa Wan recorded an average occupancy rate of 88%. Approval for land use conversion from industrial to residential has been received, with land premium terms pending finalisation.

West Gate Tower in Cheung Sha Wan recorded an average occupancy rate of 80%. The Wellgan Villa residential property in Kowloon Tong demonstrated strong leasing performance, sustaining a robust average occupancy rate of 99%.

Chinese Mainland

In Shanghai, the office towers, namely HKRI Centre One and HKRI Centre Two at HKRI Taikoo Hui ("HTH") (in which the Group holds a 50% interest), attained a combined average occupancy rate of approximately 93% for the Period, significantly outpacing market expectations amid challenging operational conditions and fierce competition.

During the Period, through a strategic repositioning of HTH and an optimised tenant mix, HTH has solidified its status as a premier luxury and lifestyle destination. The introduction of new luxury brands contributed to a 50% increase in foot traffic and boosted retail occupancy to 89%, further fortifying its market leadership.

With regard to the upgrade works, the completion of the first phase of renovations in the North Piazza of HTH greatly enhanced connectivity, facilitating the successfully arrival of "The Louis" by Louis Vuitton during the Period, a bespoke concept landmark that sparked excitement both locally in Shanghai and nationwide. This milestone further cements HTH's position as a premier hub for cultural expression and brand innovation.

The Hangzhou office market continued to experience adjustment during the Period, primarily attributed to a persistent oversupply of office space. Despite this challenging environment, HKR International Centre, comprising 156 office units and usage rights for 62 parking lots, maintained an average occupancy rate of 88%, reflecting operational resilience and effective asset management. Nevertheless, the Group remains affected by the broader market trend of ongoing decline in rental rates, which continues to exert downward pressure across the city.

In Tianjin, The Exchange (in which the Group holds a 15% interest) achieved an average occupancy rate of around 89% during the Period.

DB's transportation operations, comprising ferry, bus and tunnel services, are managed by the Group's various subsidiaries (in which the Group maintains a 50% interest). Demand for ferry and bus services remained stable during the Period, although passenger volumes fluctuated due to adverse summer weather conditions in 2025. Rising fuel costs and a shortage of skilled labour continued to pose operational challenges, despite government aid for ferry services and the provision of import quotas for bus drivers.

The five-year DB ferry service licence was renewed on 1 April 2025. As part of our ongoing fleet enhancement programme, the main engines of a mono-hull vessel were replaced in April 2025. Concurrently, the main engine replacement for a catamaran is on track, with completion expected in the fourth quarter of 2025.

Licensing for a new single-deck electric bus is currently underway, with deployment expected in the fourth quarter of 2025. Additionally, the introduction of three new electric midi-buses is scheduled for the second quarter of 2026. The Hong Kong Applied Science and Technology Research Institute has commissioned an autonomous bus trial between DB North and Sunny Bay, with deployment targeted for the first quarter of 2026.

During the Period, the Group's property management services in DB and across Hong Kong sustained solid performance, receiving multiple recognitions for sustainability and service excellence.

DB was honoured with a number of accolades at the Hong Kong Green and Sustainability Contribution Awards 2025 organised by Hong Kong Quality Assurance Agency. These included the "Outstanding Award for Excellent Contribution to Sustainable Property (Property Management) - Promote Environmental Protection", "Pioneer Award Excellence for ESG Connect", "Gold Pioneer for ESG Connect" for the three categories of Environmental, Social and Governance, as well as a "Gold Seal for Contribution to Sustainable Property - Promote Environmental Protection". These recognitions underscored the Group's commitment to advancing industry-leading, sustainable property management practices.

Throughout the Period, the Group's operations in Hong Kong, Shanghai and Bangkok demonstrated remarkable resilience by adeptly adapting to market changes and evolving consumer preferences.

Hong Kong

In 2025, Hong Kong's tourism sector faced challenges. Despite a nearly 15% year-on-year increase in inbound visitors, overall recovery remained subdued due to fewer overnight stays, stronger outbound travel trends, fluctuating occupancies and room rates, and macroeconomic uncertainties. Additional hotel supply on Lantau Island further diluted hotel demand in the area.

To enhance occupancy rate and foster guest loyalty, Auberge Discovery Bay Hong Kong (in which the Group holds a 50% interest) has implemented a multifaceted strategy. This included targeted outreach to cultivate long-stay customers, supported by cross-selling initiatives across the Group's leisure brands, and initiatives to capture the MICE sector through trade missions to major expos in Asia. Tailored stay packages and curated experiences aligned with seasonal and festive demand also received positive response from the market.

Brand visibility was elevated through partnerships with global travel agencies, wholesalers and airlines, complemented by agile digital marketing campaigns.

Chinese Mainland

During the Period, Chinese Mainland's hospitality sector sustained its growth trajectory, supported by robust inbound travel demand and favourable visa policies. Premium hotels in key metropolitan markets reported high occupancy rates, driven by a balanced mix of international and domestic guests. In this competitive landscape, guests increasingly prioritise distinctive experiences and personalised services.

The Sukhothai Shanghai and Upper House Shanghai (the Group holds a 50% interest in both) optimised revenue through advanced dynamic pricing and a focus on guest-centric experiences, including curated unique local offerings and elevated service standards. Cost optimisation measures were implemented to ensure profitability amid rising operational costs.

Looking ahead, The Sukhothai Shanghai will continue to solidify its distinctive brand identity through innovative products, enhanced direct booking initiatives, loyalty programmes and integration of sustainable practices.

Thailand

In 2025, Thailand's tourism sector faced headwinds from softer international arrivals, an appreciation of Thai Baht and regional geopolitical tensions, which tempered visitors spend and occupancies.

Despite this backdrop, The Sukhothai Bangkok outperformed its peers by broadening customer segments through proactive sales outreach, targeted campaigns, elevated culinary offerings at signature restaurants, and strategic partnerships with leading global travel and luxury brands. The strategy emphasises compelling brand storytelling and the strengths of the hotel and The Sukhothai Spa, underpinned by consistent commitment to service excellence.

DB's premium leisure portfolio encompasses four membership clubs: Discovery Bay Recreation Club ("DBRC"), Club Siena, DBGC, LYC, and DB Ice Rink ("DBIR"). These facilities (in which the Group maintains a 50% ownership) are establishing industry leadership through innovative design, superior infrastructure and operational excellence.

LYC has distinguished itself as Hong Kong's first yacht club to receive the prestigious "5 Gold Anchor Platinum Marina" accreditation from the Marina Industries Association and remains the city's only "Superyacht Ready Marina". It has successfully expanded into the wedding and events segment, earning recognitions for its exceptional hospitality, culinary excellence and outstanding service standards.

LYC further strengthened its market position by hosting the third boat show in October 2025, showcasing the potentials of yacht tourism through curating premium yachts and luxury lifestyle experiences.

At DBGC, all membership transactions have been managed exclusively by the Club since 1 April 2025 to uphold the integrity of membership pricing and ensure that prospective members receive full value from their memberships. Club enhancements are anticipated to be completed by the fourth quarter of 2025, creating a more enjoyable environment for members.

DBIR solidified its status as an international ice sports competition venue and elite skating academy. In support of youth development in speed skating, DBIR partnered with the Hong Kong Speed Skating Academy and the Hong Kong Skating School to provide training facilities. Leisure skating activities, such as "Frozen Canvas" and "Snow Resort", were organised to engage the community in ice sports.

As of 30 September 2025, the Group proudly employed a diverse and talented workforce of 1,513 individuals. In response to the ever-changing human capital market, the Group remains focused on advancing its human capital strategies. Key initiatives included fostering personal and professional development through structured learning workshops and programmes, reinforcing employee well-being through engaging activities and regular corporate culture surveys as well as continuously introducing best practices in various Human Resources areas. These efforts reflect the Group's commitment to cultivating a supportive and cohesive workplace culture where employees can thrive.

The global economic environment remains marked by both volatility and transformation. Geopolitical tensions and shifting trade dynamics, particularly between the U.S. and China, continue to bring uncertainty to global markets, challenging the resilience of businesses worldwide.

In Hong Kong, these macroeconomic pressures have resulted in stock market fluctuations and dampened market sentiment. While recent interest rate adjustments have offered some relief to the property sector, a full recovery remains challenging.

Against this backdrop, the necessity to build sustainable, long-term growth has never been more important. The Group is actively advancing its DB 2.0 Blueprint, a forward-looking strategy designed to cultivate a vibrant, resort-inspired community. The upcoming launch of the first phase of residential development of Toscana (Phase 19-1 of the development of DB City), DB's new Italian-inspired large-scale sea-view luxury residential development, marks a significant milestone in this journey. Over time, DB has evolved into a distinctive lifestyle destination in Asia, enriched by a curated calendar of festivals, family- and pet-friendly activities, and sports and wellness events - all aimed at fostering a dynamic and inclusive community.

In Chinese Mainland, the property market is showing signs of recovery, supported by the Central Government's targeted policy initiatives in key urban centres. The Group remains committed to reinforcing its long-term investment in the Yangtze River Delta area, a region of strategic importance.

Simultaneously, consumer preferences are shifting towards experiential and culturally resonant retail environments. Over the years, HTH has deepened its strategic partnerships with premium brands, exemplified by the debut of Louis Vuitton's "The Louis" during the Period - a landmark that not only enhances Shanghai's cultural landscape but also reinforces the Group's leadership in the high-end retail sector.

In response to the evolving market conditions, the Group has implemented rigorous cost control measures, reprioritised its projects, and streamlined its operational efficiency. The Group remains steadfast in its commitment to resilience and synergy across its businesses. Leveraging its strong fundamentals and a robust balance sheet, the Group will continue to pursue carefully evaluated, value-driven opportunities that deliver sustainable long-term growth.

The segment result of property development segment recorded a loss of HK$229.2 million for the Period (six months ended 30 September 2024: loss of HK$240.3 million). The improvement in segment result was attributed to: (i) sales completion of a new project, River One in Chinese Mainland which generated sales revenue of HK$1,125.8 million during the Period while no completion of new projects in the last corresponding period; but netted off by (ii) further provisions made for impairment losses on property development projects held by the Group and its joint venture. As at 30 September 2025, the Group has HK$147.9 million contracted but unrecognised property sales.

The segment result of property investment segment declined by 12.7% to HK$248.8 million for the Period (six months ended 30 September 2024: HK$285.1 million). During the Period, the segment recorded overall decline on rental revenues generated from its investment portfolios due to lowered occupancies for the Group's major commercial/retail properties since the second half of 2024. The Group's share of result of the joint venture, HTH also slightly decreased from HK$126.4 million to HK$121.0 million.

The segment result of transportation services and property management segment increased by 86.1% for the Period to HK$30.9 million (six months ended 30 September 2024: HK$16.6 million). Although the average daily ridership of bus and ferry services was slightly lower than the last corresponding period due to adverse weather during the Period, this impact was offset by the Group's successful reduction in fuel costs and the implementation of various cost control measures.

The hotel operations segment recorded an overall segment loss of HK$39.0 million for the Period (six months ended 30 September 2024: loss of HK$30.7 million). Despite improvements in room occupancies, Auberge Discovery Bay Hong Kong has been facing continued pressure for lower room rates due to budget-conscious behavior of visitors during the Period.

The leisure businesses segment, which primarily includes DBRC, Club Siena, DBGC, LYC and DBIR, recorded segment profit of HK$0.3 million for the Period (six months ended 30 September 2024: loss of HK$2.0 million). The segment performance has remained stable since second half of 2024.

As at 30 September 2025, the Group had total bank balances and cash of HK$2,824.8 million (31 March 2025: HK$2,049.5 million) and a net debt of HK$10,721.8 million (31 March 2025: HK$10,141.3 million) after deducting total bank and other loans of HK$13,546.6 million (31 March 2025: HK$12,190.8 million).

As at 30 September 2025, about 51% of the Group's bank balances and cash were denominated in Hong Kong dollars, 30% in Renminbi, 8% in U.S. dollars, 9% in Japanese Yen and the remaining were mainly in Singapore dollars and Thai Baht.

As at 30 September 2025, the Group's debt portfolio comprised of primarily bilateral and syndicated bank loans to finance its general working capital and the development projects. The unlisted notes of HK$300 million was issued under Medium Term Note programme in May 2021.

The maturity profile of bank and other loans were 25.6% (31 March 2025: 19.8%) falling within one year, 19.9% (31 March 2025: 9.8%)

falling between one and two years, 52.3% (31 March 2025: 67.9%) falling between two and five years and 2.2% (31 March 2025: 2.5%) falling over 5 years.

As at 30 September 2025, 94.1% of bank loans were on floating rate basis whereas 5.9% of which was on fixed rate basis and the unlisted notes were with fixed coupon rate. Within the Group's total bank and other loans, 96.0% were denominated in Hong Kong dollars where 4.0% were denominated in Renminbi.

As at 30 September 2025, the shareholders' fund of the Group decreased by HK$265.0 million to HK$22,210.9 million (31 March 2025: HK$22,475.9 million).

The Group's gearing ratio was 48.3% (31 March 2025: 45.1%) as calculated by the Group's net debt to the shareholders' fund as at 30 September 2025.

Total available loan facilities as at 30 September 2025 were HK$15,126.1 million (31 March 2025: HK$18,715.0 million), of which 78.2% were committed.

As at 30 September 2025, the unutilised credit facilities were approximately HK$1,546.2 million (31 March 2025: HK$6,484.2 million). The Group closely monitors its liquidity requirements and arranges financing for its development projects and operations as and when appropriate.

During the Period, the average financing cost was at 3.5% per annum as compared to 5.7% per annum in the last corresponding period.

With the ample internal resources, unutilised loan facilities, and the ready access to the loan and debt capital markets, the Group has sufficient financial resources to fund its current commitments and future potential investment opportunities ahead.

The Group has centralised treasury functions and adopted a conservative approach for its treasury management. The Group closely reviews and monitors its foreign currency exposure. To manage foreign currency exposure in certain overseas investments, the Group maintains certain naturally hedged positions and will make any swap or future arrangements as appropriate. The Group's banking facilities are principally on floating rate basis and interest rate swaps will be employed to manage interest rate risk for its short- to medium-term borrowings when appropriate and necessary.

The use of derivative financial instruments is strictly controlled and are primarily used for management of interest rate and currency exposures. It is the policy of the Group to restrict the use of financial derivatives for speculative purpose.

Having completed the disposal of the Group's interests in public car park at Tuen Mun Central Square in September 2025, the net consideration of HK$177.7 million was received in October 2025.

As at 30 September 2025, the Group pledged certain properties held for/under development for sale at a total carrying value of HK$8,222.1 million (31 March 2025: HK$7,781.8 million) to secure banking facilities granted to the Group.

As at 31 March 2025, the loans advanced to a joint venture by the Group including interest payable amounting to approximately HK$1,978.9 million were subordinated to banks to secure a banking facility granted to the joint venture for financing the development project in Tai Po. The related bank loans were fully repaid in June 2025 and the corresponding subordination of the loan advance was released subsequently.

The Company provided a corporate guarantee in proportionate share to banks for securing a banking facility granted to a joint venture to finance the development project in Tai Po. The bank loan balance in proportionate share of 40% was HK$202.0 million as at 31 March 2025. The related bank loans were fully repaid in June 2025.

Save as disclosed above, the Group did not have other significant financial guarantee contracts as at 30 September 2025.

Other Information

As at 30 September 2025, the interests or short positions of the Directors and their respective associates in the shares, underlying shares and debentures of the Company or any associated corporation (within the meaning of Part XV of the Securities and Futures Ordinance (the "SFO")) as recorded in the register required to be kept under Section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") set out in Appendix C3 to the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") and adopted by the Company were as follows:

1. LONG POSITIONS IN THE SHARES OF THE COMPANY OF HK$0.25 EACH

   Name of director	Capacity	Personal interests	Other interests	Total	Approximate percentage of issued share capital
   Victor CHA	Beneficial owner and beneficiary	1,254,278	791,896,8951	793,151,173	53.40
   Madeline WONG	of discretionary trusts Founder and/or beneficiary of	-	789,684,8822,3	789,684,882	53.17
   Johnson CHA	discretionary trusts Beneficiary of discretionary trusts	-	790,469,6471	790,469,647	53.22
   Benjamin CHA	Beneficiary of discretionary trusts	-	780,233,5991	780,233,599	52.53
   TANG Moon Wah	Beneficial owner	148,720	-	148,720	0.01
   Martin LEE	Beneficial owner	28,480	-	28,480	0.002

   1The shares belonged to certain but not identical discretionary trusts of which CCM Trust (Cayman) Limited ("CCM Trust") and LBJ Regents (PTC) Limited ("LBJ Regents") are the corporate trustees and the relevant Directors are among the members of the classes of discretionary beneficiaries.

   2635,627,031 shares belonged to certain but not identical discretionary trusts of which CCM Trust and LBJ Regents are the corporate trustees and the Director is among the members of the classes of discretionary beneficiaries.

   3The Director is, under two separate discretionary trusts of which CCM Trust and LBJ Regents are the corporate trustees, the founder and member of the classes of discretionary beneficiaries thereof. Such trusts are deemed to be interested in 154,057,851 shares in aggregate.

2. SHARE OPTIONS

Directors have been granted share options of the Company, details of which are set out in the paragraph headed "Share Option Schemes" below.

Save as disclosed above and for certain Directors holding non-beneficial interests in the share capital of some of the subsidiaries of the Company as the nominee shareholders, as at 30 September 2025, none of the Directors or their respective associates had any interests or short positions in any shares, underlying shares and debentures of the Company or any associated corporations (within the meaning of the SFO) as recorded in the register required to be kept under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code contained in the Listing Rules.

The Company's former share option scheme was adopted by the Company on 8 September 2011 and was terminated on 27 August 2021 (the "2011 Scheme") but the share options granted prior to the termination continue be valid and exercisable in accordance with the 2011 Scheme.

The existing share option scheme of the Company was approved and adopted by shareholders of the Company on 25 August 2021 (the "2021 Scheme") and the listing status of shares to be granted under the 2021 Scheme was granted by the Listing Committee of the Stock Exchange on 27 August 2021. Under the 2021 Scheme, options may be granted, inter alia, to Directors, full-time employees, and any consultants (employed on a contract basis) of the Company and its subsidiaries. The total number of the shares available for issue under the 2021 Scheme is 148,530,180 shares, which represents 10% of the issued share capital of the Company at the date of this interim report (i.e. 19 November 2025).

During the Period, 2,080,000 share options were lapsed and no share options were granted, exercised or cancelled in accordance with the terms of the 2021 Scheme. As at 1 April 2025 and 30 September 2025, the number of share option available for grant under the 2021 Scheme was 68,685,180 and 70,765,180, respectively. As at 30 September 2025, the number of shares potentially requiring to be issued in respect of share options granted under the 2021 Scheme was 77,765,000, representing approximately 5.24% of the total issued shares of the Company as at the date of this interim report (i.e. 1,485,301,803 shares).

In addition, 220,000 share options were lapsed and no share options were exercised or cancelled in accordance with the terms of the 2011 Scheme during the Period. As at 30 September 2025, the number of shares potentially requiring to be issued in respect of share options granted under the 2011 Scheme was 34,870,000, representing approximately 2.35% of the total issued shares of the Company as at the date of this interim report.

Details of the movements of share options during the Period and the outstanding share options as at 30 September 2025 under the 2021 Scheme and 2011 Scheme, respectively were as follows:

1. SHARE OPTIONS UNDER THE 2021 SCHEME Number of share option

   Name or Category of participant	Date of grant4,5	Exercise price per share HK$	Balance as at 1 April 2025	Lapsed during the Period	Balance as at 30 September 2025
   Victor CHA	24 November 2021	3.028	9,500,000	-	9,500,000
   	4 October 2023	1.636	9,500,000	-	9,500,000
   TANG Moon Wah	24 November 2021	3.028	6,000,000	-	6,000,000
   	4 October 2023	1.636	6,000,000	-	6,000,000
   Martin LEE	24 November 2021	3.028	600,000	-	600,000
   	4 October 2023	1.636	600,000	-	600,000
   NGAN Man Ying	24 November 2021	3.028	3,000,000	-	3,000,000
   	4 October 2023	1.636	3,000,000	-	3,000,000
   Madeline WONG	24 November 2021	3.028	3,500,000	-	3,500,000
   	4 October 2023	1.636	3,500,000	-	3,500,000
   Johnson CHA	24 November 2021	3.028	2,400,000	-	2,400,000
   	4 October 2023	1.636	2,400,000	-	2,400,000
   Benjamin CHA	4 October 2023	1.636	2,400,000	-	2,400,000
   Linus CHEUNG	24 November 2021	3.028	1,200,000	-	1,200,000
   	4 October 2023	1.636	1,200,000	-	1,200,000
   Henry FAN	24 November 2021	3.028	1,200,000	-	1,200,000
   	4 October 2023	1.636	1,200,000	-	1,200,000
   Barbara SHIU	24 November 2021	3.028	600,000	-	600,000
   	4 October 2023	1.636	1,200,000	-	1,200,000
   TANG Kwai Chang	24 November 2021	3.028	1,200,000	-	1,200,000
   	4 October 2023	1.636	1,200,000	-	1,200,000
   Ex-directors6	24 November 2021	3.028	7,200,000	600,000	6,600,000
   Ex-director7	4 October 2023	1.636	4,500,000	-	4,500,000
   Employees	24 November 2021	3.028	2,050,0008	740,000	1,310,000
   	4 October 2023	1.636	4,695,0009	740,000	3,955,000
   Total			79,845,000	2,080,000	77,765,000

   4Share options granted on 24 November 2021 are exercisable during the period from 24 November 2021 to 23 November 2026 and the share options vested immediately on the date of grant.

   5Share options granted on 4 October 2023 are subject to vetting conditions (50% of the options granted were vested on 4 October 2024 and the remaining balance were vested on 4 October 2025) and early termination and are exercisable up to 3 October 2028.

   6Include four Directors resigned or retired with effect from 24 August 2022, 23 August 2023, 20 September 2024 and 1 January 2025 respectively.

   7Include two Directors resigned with effect from 20 September 2024 and 1 January 2025 respectively.

   8600,000 share options were reclassified upon the appointment of an employee as Director.

   9600,000 share options were reclassified upon the appointment of an employee as Director.

2. SHARE OPTIONS UNDER THE 2011 SCHEME

10Share options granted on 28 February 2017 are exercisable during the period from 28 February 2017 to 27 February 2027. Share options

granted on 12 March 2018 are exercisable during the period from 12 March 2018 to 11 March 2028.

11The share options vested immediately on the respective dates of grant.

12Include four Directors resigned or retired with effect from 31 March 2018, 1 April 2021, 24 August 2022 and 23 August 2023 respectively.

13Include six Directors resigned or retired with effect from 31 March 2018, 1 April 2021, 24 August 2022, 23 August 2023, 20 September

2024 and 1 January 2025 respectively.

As at 30 September 2025, the following persons (other than the Directors) had interests or short positions in the shares and underlying shares of the Company as recorded in the register required to be kept under Section 336 of the SFO:

CCM Trust (Cayman) Limited Corporate trustee 715,617,96914 48.17

LBJ Regents (PTC) Limited Corporate trustee 101,084,28015 6.81

Mingly Corporation Interest of controlled corporation 144,606,56816 9.73

OEI Kang Eric Interest of controlled corporations/ Interest held jointly with another person

90,405,600176.08

Claudio Holdings Limited Interest of controlled corporations 83,500,80018 5.62

14These share interests comprise 571,011,401 shares held directly by CCM Trust and 144,606,568 held indirectly through a wholly-owned subsidiary of Mingly Corporation ("Mingly"), which CCM Trust is interested in 91.39% equity interest. CCM Trust holds the above share interests as corporate trustee of certain but not identical discretionary trusts of which members of the classes of discretionary beneficiaries comprise the late Dr CHA Chi Ming's issue.

15The shares are held by LBJ Regents as corporate trustee of certain but not identical discretionary trusts of which members of the classes of discretionary beneficiaries comprise the late Dr CHA Chi Ming's issue.

16The shares are held indirectly by Mingly through its wholly-owned subsidiary.

17As at 27 February 2024 as disclosed to the Stock Exchange, 6,904,800 shares are held jointly by OEI Kang Eric with another person and 83,500,800 shares are held by corporations (including Claudio Holdings Limited) controlled by OEI Kang Eric.

18As at 27 February 2024 as disclosed to the Stock Exchange, the shares are held by, through corporations controlled by, Claudio Holdings Limited.

Save as disclosed above, as at 30 September 2025, no other interests or short positions in the shares or underlying shares of the Company were recorded in the register required to be kept by the Company under Section 336 of the SFO.

There was no grant to, and no exercise by, the Directors of the Company of any share options of the Company during the Period.

Save as disclosed under the heading "Share Option Schemes" above, at no time during the Period was the Company or any of its subsidiaries a party to any arrangement to enable the Directors to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the Period.

The Company is dedicated to maintaining good corporate governance, which it considers fundamental to the success of its businesses and operations. Throughout the Period, the Company has complied with the code provisions of the Corporate Governance Code ("CG Code") as set out in Appendix C1 to the Listing Rules, except for Code Provision F.1.3 of the CG Code which stipulates that the chairman of the board should attend the annual general meeting. The Chairman of the Board, Mr CHA Mou Zing Victor, was not present at the Company's 2025 annual general meeting due to other engagement. In his absence, the Managing Director chaired the meeting, and the chairman of the Audit Committee, the Nomination Committee and the Corporate Governance Committee, and a member of the Remuneration Committee were also present to address shareholders' questions.

The Company has adopted the Model Code set out in Appendix C3 to the Listing Rules (including amendments as effected from time to time) as its own code of conduct to regulate securities transactions by Directors and specified employees who, by reference to their positions and duties, are likely to be in possession of inside information of the Group. All Directors have confirmed, following specific enquiry by the Company, that they have complied with the required standards set out in the Model Code throughout the Period.

Mr Martin LEE was appointed as an Executive Director of the Company on 18 June 2025.

In accordance with the continuing obligations set out in rule 13.21 of Chapter 13 of the Listing Rules, the following are the details of the loan agreements with covenants relating to specific performance on the controlling shareholders of the Company as at the date of this interim report pursuant to rule 13.18 thereof. There exists no reporting obligation by the Company under rules 13.17 and 13.19 of the Listing Rules accordingly:

1. The Company is the borrower of a loan agreement entered into on 6 September 2021 (the "Loan Agreement I") for a term and revolving loan facility in an aggregate principal amount of HK$600 million with final maturity date falling five years from the date of the Loan Agreement I.

2. The Company is the borrower of a loan agreement entered into on 29 April 2022 (the "Loan Agreement II") for a term and revolving loan facility in an aggregate principal amount of HK$2,400 million with final maturity date falling five years from the date of the Loan Agreement II.

Under the Loan Agreement I and Loan Agreement II (collectively, the "Loan Agreements"), among others, an event of default is triggered when the existing largest shareholder of the Company (together with his associate(s)) holding the largest shareholding (direct or indirect) in the Company on the date of the respective Loan Agreements ceases to be the Company's largest shareholder at any time during the term of the respective Loan Agreements unless the situation can be remedied within a prescribed timeframe pursuant to the respective Loan Agreements.

In the Company's case, 816,702,249 shares (representing approximately 54.98% of the Company's issued share capital as at the date of this interim report) are owned by corporate trustees of certain, but not identical, discretionary trusts of which members of the classes of discretionary beneficiaries include the late Dr CHA Chi Ming's issue are together treated as the existing largest shareholder collectively holding the largest shareholding in the Company. This has been the continuing status since the signing of each of the Loan Agreements.

In accordance with the requirements of rules 13.20 and 13.22 of Chapter 13 of the Listing Rules, the following were the details of financial assistances and guarantees given for facilities granted to affiliated companies of the Company as at 30 September 2025 pursuant to rules 13.13 and 13.16 thereof:

1. A joint venture, Gainwick Limited ("Gainwick"), which is indirectly owned by the Company (effective shareholding interest of 40%) and Hysan Development Company Limited ("Hysan", effective shareholding interest of 60%), was formed for the purpose of a residential property development in Tai Po, New Territories. As at 30 September 2025, the Company in proportion to its effective shareholding interest in Gainwick provided Gainwick with HK$2,040.9 million advances in the form of unsecured with no fixed terms of repayment, in which HK$69.1 million as working capital loan is charged with an interest rate of 2% per annum over 1-month Hong Kong Interbank Offered Rate ("HIBOR") whereas the remaining advances are interest-free.

   In addition, for purpose of provision of mortgage loan financing to the purchasers of the development and for working capital purpose, the Group provided advances to Gainwick Mortgage Limited ("GML"), in which the Group and Hysan hold indirectly 40% and 60% respective effective shareholding interests. As at 30 September 2025, the Group advanced HK$82.9 million to GML and the advances are unsecured with no fixed terms of repayment, and at an interest rate of 2% per annum over 1-month HIBOR.

   As of 30 September 2025, the loan amount provided to Gainwick under the banking facilities arranged by a syndicate of financial institutions in Hong Kong was fully repaid, and the related guarantee issued by the Company for the principal amount of up to HK$1,000 million in favor of the financial institutions as security for Gainwick's obligations was subsequently released.

2. As at 30 September 2025, the Group advanced to Dazhongli Properties Limited and its subsidiaries ("Dazhongli group") an aggregate amount of HK$4,440.3 million. Dazhongli group is engaged in the operation of investment properties and hotel properties in Jing'an District, Shanghai, the People's Republic of China in which the Group has 50% interest. The advances were provided by the Group in the form of equity and loans in proportion to its shareholding interest therein, for the purpose of financing the development expenditure of Dazhongli group. The advances are unsecured, non-interest bearing and have no fixed terms of repayment.

3. As at 30 September 2025, the Group also advanced to and provided guarantees for other several affiliated companies an aggregate amount of HK$647.3 million. The Group has interests ranging from 31% to 50% in these affiliated companies.

As at 30 September 2025, the aggregate amount of advances provided to and guarantees given for these affiliated companies by the Group amounted to HK$7,211.4 million representing 16.7% of the consolidated total assets of the Group of HK$43,264.0 million as at 30 September 2025.

A pro forma combined statement of financial position of these affiliated companies and the Group's attributable interests in these affiliated companies as at 30 September 2025 were as follows:

The interim results of the Group for the Period have not been audited, but have been reviewed by the Audit Committee of the Company and the Group's Auditor, Messrs PricewaterhouseCoopers.

On behalf of the Board CHA Mou Zing Victor Executive Chairman

Hong Kong

19 November 2025

Report on Review of

Condensed Consolidated Financial Statements

(Incorporated in the Cayman Islands with limited liability)

We have reviewed the condensed consolidated financial statements set out on pages 19 to 44, which comprise the condensed consolidated statement of financial position of HKR International Limited (the "Company") and its subsidiaries (together, the "Group") as at 30 September 2025 and the condensed consolidated statement of profit or loss, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the six-month period then ended, and selected explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on the condensed consolidated financial statements to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 "Interim Financial Reporting" as issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"). The directors of the Company are responsible for the preparation and presentation of these condensed consolidated financial statements in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" as issued by the HKICPA. Our responsibility is to express a conclusion on these condensed consolidated financial statements based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" as issued by the HKICPA. A review of the condensed consolidated financial statements consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements of the Group are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" as issued by the HKICPA.

Certified Public Accountants Hong Kong, 19 November 2025

18

HKR International Limited Interim Report 2025/2026

Condensed Consolidated Statement of Profit or Loss

For the six months ended 30 September 2025

19

HKR International Limited Interim Report 2025/2026

Condensed Consolidated Statement of

Profit or Loss and Other Comprehensive Income

For the six months ended 30 September 2025

20

HKR International Limited Interim Report 2025/2026

Condensed Consolidated Statement of Financial Position

At 30 September 2025

21

HKR International Limited Interim Report 2025/2026

Condensed Consolidated Statement of Financial Position

At 30 September 2025

22

HKR International Limited Interim Report 2025/2026

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 September 2025

23

HKR International Limited Interim Report 2025/2026

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 September 2025

24

HKR International Limited Interim Report 2025/2026

Transfer to investment property revaluation reserve relating to unrealised net fair value loss during

the period - 321.6 (321.6) - - - - - - - - -At 30 September 2024 (unaudited) 371.3 13,476.9 7,811.8 1,537.9 61.8 30.1 (62.4) (21.3) 3.1 23,209.2 2,722.9 25,932.1

Notes:

1. Investment property revaluation reserve represents the Group's accumulated post-tax unrealised net fair value gain on the investment properties of subsidiaries and a joint venture recognised in profit or loss, which is transferred from accumulated profits to investment property revaluation reserve. Upon disposal of the relevant investment property, the relevant unrealised net fair value gain will be transferred to accumulated profits.

2. Capital redemption reserve is the amount equivalent to the nominal value of the shares cancelled upon repurchase of the Company's shares which was transferred from accumulated profits. The reserve may be applied by the Company in paying up its unissued shares to be allotted to members of the Company as fully paid bonus shares in accordance with the articles of association of the Company and the Companies Law of the Cayman Islands.

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 September 2025

25

HKR International Limited Interim Report 2025/2026

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 September 2025

1. BASIS OF PREPARATION

   The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA") and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

2. MATERIAL ACCOUNTING POLICIES

   The condensed consolidated financial statements have been prepared on historical cost basis, except for certain properties and financial instruments, which are measured at fair values, as appropriate.

   The accounting policies used in the preparation of the condensed consolidated financial statements for the six months ended 30 September 2025 are consistent with those set out in the annual report for the year ended 31 March 2025 except as described in note 2(a) below.

   1. AMENDMENTS TO HKFRS ACCOUNTING STANDARDS ADOPTED BY THE GROUP

      In the current interim period, the Group has applied, for the first time, the following amendments to HKFRS Accounting Standards and interpretation issued by the HKICPA which are mandatory effective for the annual period beginning on or after 1 April 2025 for the preparation of the Group's condensed consolidated financial statements:

      Amendments to HKAS 21 Lack of Exchangeability

      The adoption of the above amended standards and interpretations has no material effect on the results and financial position of the Group.

   2. NEW AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE

      Certain new and amendments to standards and interpretations have been published that are not mandatory for the current reporting period and have not been early adopted by the Group. The adoption may have an impact on the presentation and disclosures of the financial statements but does not expect to have significant impact to the results of operation and financial position of the Group.

      26

      HKR International Limited Interim Report 2025/2026

      Notes to the Condensed Consolidated Financial Statements

      For the six months ended 30 September 2025

3. REVENUE AND SEGMENT INFORMATION

The Group is organised into five operating divisions: property development, property investment, transportation services and property management, hotel operations and leisure businesses. Each of the operating divisions represents an operating and reportable segment.

27

HKR International Limited Interim Report 2025/2026

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 September 2025

28

HKR International Limited Interim Report 2025/2026