Dear Shareholder,

KWIH maintained steady development and a sound financial position through its robust business strategy and flexible market response capabilities, laying a solid foundation for future growth. Adhering to the principles of “impeccable quality” and “K. Wah Plus”, the Group steadily launched premium residential projects in Hong Kong and the Mainland. For the financial year ended 31 December 2025, the Group recorded attributable contracted sales of approximately HK$5.7 billion, and attributable revenue increased by 37% year-on-year to approximately HK$11.5 billion. The Group recorded a loss attributable to equity holders of approximately HK$870 million. The Board remains confident in the Group’s long-term development prospects and recommends a final dividend of 1 HK cent per share. Together with the interim dividend of 2 HK cents per share paid, total dividend for the year amounted to 3 HK cents per share, reflecting the Group’s continued commitment to rewarding shareholders.

In 2025, sentiment in the Hong Kong property market gradually stabilised. Benefiting from the interest rate cut cycle and capital inflows, transaction activities increased progressively in the second half of the year. The Mainland property market remained in an adjustment period, with the Central Government continuing to implement policies to stabilise the market and reduce inventory. Sales performance of key projects in both Hong Kong and the Mainland remained stable as the Group prudently adjusted its sales strategies in response to market conditions and policy changes.

In Hong Kong, transactions of KT Marina 1 increased, with over 660 units sold cumulatively. Another joint venture project in the Kai Tak runway area, Victoria Voyage 1A and 1B, was launched in the second half of 2025, with over 150 units sold. In addition, the solely-owned project Kabitat•Tin Hau on King’s Road, Tin Hau, was launched in January this year, with over 90% of units sold, receiving strong market response. The joint venture project La Mirabelle, Tseung Kwan O, was launched in March this year. The Group will continue to launch various premium projects, including the solely-owned project located on Hospital Road in Mid-levels West, the joint venture project on Po Shan Road, KT Marina 2, and Victoria Voyage 2A and 2B. In the Mainland, Cosmopolis, the residential portion of Phase I of Cosmo in Guangzhou, recorded cumulative sales of over 740 units. Projects including VETTA in Suzhou and J City in Jiangmen were launched as planned. The Group will continue to focus on Hong Kong and Tier 1 and Tier 2 cities in the Mainland, targeting upgraders, while flexibly responding to market changes as it makes plans to launch premium projects.

The Group will continue to prudently manage its land bank to ensure sustainability and flexibility for steady development. The Group’s land bank comprises a total attributable gross floor area of approximately 1.27 million sq. m. across Hong Kong and the Mainland, providing a solid foundation for future development.

The Group’s financial position has remained solid and positive. During the year under review, the Group actively implemented debt reduction measures. With a healthy balance sheet and sufficient funds, the Group will continue to respond to market changes prudently and capture investment opportunities at an opportune time.

Outlook

In 2026, global economic conditions remain uncertain amid ongoing geopolitical risks and market volatility. Nevertheless, there have been signs of gradual improvement in Hong Kong’s property market and increasing stability in the Mainland market under supportive policies. As a Hong Kong-rooted company, the Group will actively seize the opportunities arising from the commencement of the national 15th Five-Year Plan, integrating into the broader national development framework. The Group maintains a cautiously optimistic outlook on the medium- to long-term development of the property markets in Hong Kong and the Mainland. It will continue to maintain a stable cash flow and sound financial position while leveraging its extensive experience to develop premium properties through flexible development strategies, thereby creating long-term value for all stakeholders.

On behalf of the Board, I would like to take this opportunity to thank all our staff for their steadfast dedication and relentless efforts in fulfilling their duties despite ongoing challenges, and for the invaluable contributions they have made to the Group. I look forward to their continued collaboration with the Group to seize future opportunities for development and realise our vision for long-term and sustained business growth.

Francis Lui

Chairman

27 March 2026