Dear Shareholders,
In 2025, the global economy faced multiple challenges, including uncertain trade policies, tense geopolitical situations and persistent inflationary pressures, with a volatile and uneven outlook. Hong Kong’s business environment remained under pressure, as the trend of residents traveling north for consumption persisted. The retail sector was significantly affected by changes in consumer behavior; although visitor arrivals to Hong Kong rebounded compared with 2024, both residents and visitors remained cautious about high-value spending. Meanwhile, the nation is firmly implementing its strategy to expand domestic demand, and the tourism industry has become a vital force in boosting consumption and driving growth. Against this backdrop, the Group adhered to a prudent business policy, closely followed the national development strategy with its “Tourism+” development strategy, relied on its foundation in the Guangdong-Hong Kong-Macao Greater Bay Area (the “GBA”), and made steady progress in its four core business segments — property, hospitality and leisure, transportation and investment — maintaining resilience amid volatility.
Deepen Core Segments and Consolidate Development Foundation
The Group has consistently aligned itself with national policies, actively seizing the opportunities presented by the “14th Five-Year Plan” to participate in the high-quality development of the GBA and promote the integrated development of culture and tourism. Our “Tourism+” strategy is unlocking the potential of the GBA by seamlessly integrating high-speed transport, lifestyle hospitality, and cultural experiences to build a differentiated, high-value ecosystem.
Embracing a qualitative transformation, our transportation division is intensifying efforts to optimize extensive multi-modal transport resources while reinventing its offerings to meet the evolving dynamics of the travel and tourism sector.
Our recent collaboration with Shenzhen Airport Group exemplifies our long-standing commitment to developing a more expansive and integrated transportation network for the region. With Shenzhen Bao’an International Airport being earmarked as a key international hub by advancing multimodal transport integration, new opportunities have emerged for us to explore the areas for future business endeavors in yacht economy and low-altitude economy outlined in the “15th Five-Year Plan”. These efforts further contribute to positioning the GBA as a world-class region for living, working, and traveling, driving its high-quality development.
In the hospitality and leisure sector, our wholly-owned subsidiary — Artyzen Hospitality Group (“AHG”) has deeply integrated its hotels with culture, commerce, and art. In 2025, AHG achieved a turnaround from loss to profit in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) through prudent operations, marking an important milestone and confirming the resilience of the lifestyle hotel model. AHG signed an agreement with Xi’an Yang’s Real Estate to introduce the “Artyzen Hotels and Resorts” luxury lifestyle hotel brand to Xi’an, realizing the brand’s first layout in this historic city and reflecting the Group’s confidence in long-term market demand. Supported by the continuous expansion of national visa-free policies, the Group’s hotels in Macao and Hong Kong enhanced the multi-destination experience, with occupancy rates and demand steadily rebounding. In addition, Artyzen Habitat Hengqin Zhuhai was awarded the “Five-Leaf Green Hotel” certification by National Green Hotel Committee. NEW BUND 31 continued to consolidate its position as a cultural landmark, achieved stable performance through large-scale events, and its affiliated hotel won numerous industry awards, confirming the core value of experience-driven projects.
Meanwhile, the Group adhered to high-quality development and optimized asset management. The Group’s luxury residential projects in Singapore demonstrated strong resilience; some deferred units of Les Maisons Nassim and Park Nova were sold at significant premiums after completion, fully reflecting the long-term attractiveness of high-quality assets in prime locations. In Hengqin, the integration with Macao and the GBA continued to accelerate, with cross-border visitor numbers maintaining strong year-on-year growth. The Group sold part of the premises of Hengqin Integrated Development, which will be repurposed into a hotel facility. This move can benefit from the relevant policy promoting the high-quality development of the hotel industry in Guangdong-Macao In-Depth Cooperation Zone in Hengqin, as well as facilitate the coordinated development of the cultural tourism, convention and exhibition, and commercial and trade industries between Hengqin and Macao. In the leasing business, demand for high-grade office in first-tier cities in Chinese Mainland has slowed due to corporate cost control and operational adjustments by multinational companies. Despite the difficulties, the existing investment portfolio maintained effective management, and the rental income of the leasing portfolio in Shanghai, Beijing, Guangzhou and Hengqin remained stable. Although Hong Kong’s retail leasing market was under pressure, the Group maintained its occupancy rate through lease renewals and tenant mix optimization.
Anchor National Strategy and Plan for Long-Term Development
Financial discipline remained essential to our approach. For the year ended 31 December 2025, the Group recorded an overall loss attributable to shareholders amounted to HK$478 million (2024: HK$824 million). Basic loss per share for the year was HK15.8 cents (2024: HK27.3 cents). Having considered the Group’s financial performance, cash flow position and future capital requirements, the Board does not recommend the payment of any final dividend in respect of the year ended 31 December 2025. No interim dividend was declared during the year.
Looking ahead, although the national economy faces challenges such as real estate adjustment and domestic demand recovery, and the Group remains cautiously optimistic about the long-term prospects of its business in the Chinese Mainland, the “15th Five-Year Plan” clearly proposes improving the modern comprehensive transportation system and promoting in-depth integration of culture and tourism. Coupled with the deepening of reform and opening-up and the development of new-quality productive forces, the long-term positive trend remains unchanged. The Group is particularly confident about the prospects of the GBA as the “15th Five-Year Plan” reinforces the commitment to deepening the development of the GBA, providing further support for Macao’s role as a world center of tourism and leisure, and for Hong Kong’s evolution into the East-meets-West center for international cultural exchange. We believe this strategic direction will unlock significant opportunities for the Group in the region. The Group will continue to respond to the national development strategy, further strengthen the multimodal transportation network to create a seamless travel experience; advance the “Adventure Zone” project at Ocean Park Hong Kong as planned, cooperate with AJ Hackett International group to create innovative tourism products, and continuously release the cultural tourism potential of the GBA. At the same time, it will integrate sustainable development into all links of operations, empower high-quality development through technology, and build a more resilient long-term growth platform.
On behalf of the Board, I sincerely thank all shareholders, business partners and stakeholders for their consistent trust and support, and thank the Group’s management team and all colleagues for their dedicated efforts. The Group will continue to rely on the advantages of the GBA, deepen the “Tourism+” development strategy, firmly support national development goals, consolidate its position as an integrated cultural tourism enterprise, and prudently and steadily advance various businesses to create greater long-term value for shareholders.
Thank you.
By order of the Board
Pansy Ho
Group Executive Chairman and Managing Director
30 March 2026