KWIH Announces 2026 Interim Results - Financial Position Remains Solid; Business Development Maintains Steady Momentum

(Hong Kong - 27 August 2026) – K. Wah International Holdings Limited (“KWIH” or the “Group”) (Stock Code: 00173) today announced its unaudited interim results for the six months ended 30 June 2026. Leveraging its robust business strategies and flexible responsiveness to market changes, the Group has maintained steady development and a sound financial position, laying a solid foundation for future growth.

Mr. Francis Lui, Chairman of KWIH, said,

“During the period under review, the Group continued to execute its sales strategy for premium residential projects. The attributable contracted sales amounted to approximately HK$6.1 billion. As of 30 June 2026, the Group’s unrecognised attributable contracted sales amounted to approximately HK$5.6 billion, which are expected to be recognised within the next one to two years, providing us with a stable income stream. During the period under review, the Group recorded attributable revenue of approximately HK$7.5 billion, representing an increase of 4% year-on-year. Major recognised projects included Avenir in Shanghai and two joint-venture projects in Hong Kong, namely KT Marina and Grand Mayfair, as well as rental income from Shanghai K. Wah Centre. In addition, the Group maintained a high-quality portfolio of investment properties, with rental income from investment properties, including hotels and serviced apartments, amounting to approximately HK$350 million during the period under review. The Group recorded profit attributable to equity holders of approximately HK$80 million. The Board remains confident in the Group’s long-term development prospects and recommends an interim dividend of 2 HK cents per share, reflecting the Group’s continued commitment to rewarding shareholders.

In the first half of 2026, Hong Kong’s property market recovered at a faster pace. Supported by persistently low interest rates and continued inflows of talent and capital, market activity remained robust, driving steady growth in overall property prices. While the Mainland property market is still bottoming out and stabilising, the Central Government has intensified its implementation of a coordinated policy package to ‘control new supply, reduce inventory and optimise supply’, with first-tier cities showing early signs of stabilisation. Nevertheless, evolving consumption patterns and intensifying competition continue to pose potential challenges to the sector. In the face of a market environment where prospects are gradually improving, but challenges remain, we have continued to uphold our core strategy of prudent financial management, stable business operations and agile responses to market conditions, maintaining steady development momentum. At the same time, we have adjusted our sales strategy in line with policy and market developments, and key projects in both Hong Kong and the Mainland have continued to record stable sales performance.

KWIH adheres to a prudent financial management philosophy, maintaining a healthy and robust financial position while continuing to strengthen its capital structure. During the period under review, the Group actively implemented debt reduction measures, while proceeds from property sales increased. As of 30 June 2026, the Group’s net gearing ratio remained at a relatively low level of 9%, representing a decline of 8% from 17% at the end of last year. Total bank borrowings decreased significantly by HK$2.5 billion, from HK$13.7 billion as at 31 December 2025 to HK$11.2 billion. This fully reflects the Group’s strong liquidity position, more resilient balance sheet, and commitment to maintaining sound financial health, while providing the Group with ample financial flexibility to respond to market changes and investment needs. Cash and bank deposits amounted to approximately HK$7.3 billion, with undrawn bank loans of approximately HK$18.7 billion. The Group has robust liquidity and a healthy balance sheet, and will continue to respond to market changes prudently and capture investment opportunities at an opportune time.

Looking ahead to the second half of the year, although the external environment remains challenging, the property markets in both Hong Kong and the Mainland continue to demonstrate resilience. Globally, geopolitical developments, energy prices and the trajectory of US interest rates continue to create uncertainty for the macroeconomic outlook. In addition, market attention has increasingly focused on the Mainland’s enhanced enforcement of existing offshore tax regulations. However, the current arrangements do not cover residential properties, and further developments will continue to be monitored. Nevertheless, the positive sentiment in Hong Kong’s property market and the gradual stabilisation of the Mainland market are instilling greater confidence in the industry, while demand for underlying and upgraded housing remains stable. The Group will leverage the launch of the national 15th Five-Year Plan as an opportunity to align with national development strategies, capitalise on its distinctive strengths as a Hong Kong-rooted company and remain cautiously optimistic about the medium- to long-term outlook for the property markets in Hong Kong and the Mainland.

The Group will continue to maintain financial prudence and strategic flexibility while proactively adapting to evolving consumer trends. Upholding its steadfast commitment to quality, innovation and pragmatism and the ‘K. Wah Plus’ principle, the Group will pursue steady progress amid changing market conditions, continue to develop distinctive, premium properties and create long-term value for customers, shareholders and society.”

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