Principal Activities

The principal activities are property investment, management and development.

Latest Results

The Group's profit attributable to shareholders for the year ended 31-12-2025 amounted to HKD 840.0 million, an increase of 85.4% compared with previous corresponding period. Basic earnings per share was HKD 0.3067. A dividend of HKD 0.81 per share was declared. Turnover amounted to HKD 3.46 billion, an increase of 1.6% over the same period last year, gross profit margin down 0.9% to 80.2%. (Announcement Date: 26 Feb 2026)

Business Review - For the year ended December 31, 2025

Retail

Hong Kong Portfolio

Turnover increased by 1.5% to HK$1,704 million (2024: HK$1,678 million), including turnover rent of HK$118 million (2024: HK$127 million).

As at 31 December 2025, retail occupancy increased to 95% (2024: 92%). Rental reversion rate on renewals, rent reviews and new lettings was predominantly positive during 2025.

During the year, Hong Kong’s retail market remained under pressure from the ongoing trend in cross- border shopping and cautious tourist spending. Nevertheless, the market showed signs of stabilisation, supported by a gradual improvement in market momentum. Tourist arrivals grew, especially in the third quarter of the year, due to the HKSAR Government’s promotion of mega-events and world-class concerts aimed at attracting international visitors and increasing tourist spending. We expect that the recovery in tourism numbers and improved consumer sentiment will sustain further growth in the retail market in 2026.

During this encouraging period of market stabilisation, we elevated our retail portfolio with expanded flagship maisons of the luxury brands to offer more distinctive customer experiences. We worked closely with our anchor tenants to create a refreshed, more dynamic retail atmosphere, strengthening Lee Gardens’position as a premier retail destination and enhancing the overall appeal of the precinct.Towards that end, new fine dining restaurants were launched to broaden the culinary options available to visitors.

Another significant addition during the year was the introduction of over 50 new brands to the Lee Gardens precinct that complement our existing portfolio. By diversifying our retail mix, we cater for a wider range of consumer preferences and lifestyles within Lee Gardens. Hysan Place welcomed the new brands with a series of pop-up stores and engaging events, all of which contributed to the vibrant, ever- evolving retail environment of the precinct. This combination of new brands, pop-up stores and curated events reinforced Lee Gardens’reputation as a destination that offers novel and compelling shopping experiences.

Significant progress was also made on Lee Gardens rejuvenation, which is being carried out in phases, as well as construction of Lee Garden Eight and the integrated pedestrian walkway system. These initiatives will elevate the overall shopping experience at Lee Gardens and make the neighbourhood more accessible with heightened engagement and participation by retailers.

Through thoughtfully curated retail options and innovations, Hysan has created a distinctive retail environment that meets the evolving expectations of consumers while providing a dynamic platform on which both established and emerging brands can thrive.

Mainland Portfolio

In Mainland China, we have positioned Lee Gardens Shanghai as a business and social hub for the surrounding office precinct. It achieved a retail leasing occupancy of 72% as at 31 December 2025 (2024:41%).

The retail segment generated rental income of HK$23 million (2024: HK$6 million). Despite macro-market challenges from new supply in the area and structural shifts in consumer behaviour, leasing activity at Lee Gardens Shanghai is expected to grow steadily. This will enable us to further diversify our tenant mix, strengthen our resilience and drive sales performance.

Marketing Initiatives and Loyalty Programmes During the year, we aligned our marketing initiatives in Hong Kong with the gradual return of inbound tourism and steady local consumption. To capture renewed consumer demand, we launched a series of thematic high-impact campaigns that reinforced our portfolio’s image as“A Place for All”. Blending cultural and lifestyle elements that transcend traditional promotions, these immersive experiences helped promote community engagement and increase commercial performance.

Notable headline events included our culturally immersive Chinese New Year street festival and the“hy! Up Your Balance”wellness campaign combining modern fitness concepts with traditional lion dance classes and rooftop martial arts displays. Another noteworthy event was the“hy! Chill Fest”, developed in partnership with ComplexCon, an annual global festival of pop culture, featuring an exhibition of limited edition sneakers and pop-up stores.

We further reinforced Hysan Place’s position as a trendsetting urban culture hub with our“hy! & Seek”summer campaign, featuring the viral Mamuang cartoon character by Thai comic artist, Wisut Ponnimit.By showcasing the unique character of Hong Kong’s culture alongside global trends, these engaging campaigns highlighted our commitment to integrating art and culture into the retail experience.

Other events included collaborations with a variety of tenants. These included the“Celebrate Every Bite”dining campaign promoting authentic global flavours, the“Threads of Beauty”campaign celebrating self- love with a diverse range of cosmetic brands, and the“Shining Moments”campaign aimed at stimulating spending on luxury brands, attracting over 600 high-value customers joining our VIP shopping night.

We also collaborated with international celebrities as part of our marketing strategy. They included holding exclusive pop-up events with Korean artist Jisoo and with the sensational drama series, Squid Game. For our year-end Christmas campaign, we transformed Urban Park at Hysan Place into an art carnival, immersing visitors in the artistic universe of Japanese contemporary artist Takashi Murakami.For this event, exclusive merchandise available at Hysan Place and a festive light installation spanning Lee Garden One and Two were featured. Enthusiastically received by the community, these campaigns generate significant increase in visitor numbers and sales, strengthening the image of the Lee Gardens area as a trendsetting hub.

In 2025, we achieved a significant breakthrough in our engagement strategy with valued customers by forming strategic partnerships with banks and wealth management firms. The aim of this collaboration was to attract potential high spenders by targeting premier banking clients and pre-qualifying them for our Club Avenue tiers. As a result of this member acquisition programme, we converted over 1,500 individuals into the Club Avenue programme, directly expanding our high-potential member base and showcasing the effectiveness of our targeted outreach model.

Adhering to our commitment to innovation, we will continue to expand the immersive marketing experiences we create by combining popular new trends and Gen Z-inspired themes with traditional cultural elements. We believe that through authentic storytelling and engagement, we will continue to connect with diverse audiences across generations.

Office

Hong Kong Portfolio

Turnover decreased by 2.3% to HK$1,407 million, compared with HK$1,440 million in 2024. This includes a turnover rent of HK$9 million (2024: HK$9 million).

Hong Kong’s office market remained challenging throughout the year, with leasing activity driven by the continued shift in preference towards prime locations and well-equipped office buildings. We responded with flexible rental packages, fit-out support and early renewals, and highlighted our enhanced offerings of fully furnished office space for immediate use and sustainable amenities.

The average rental reversion rate on renewals, rent reviews and new lettings for Hysan’s Lee Gardens portfolio remained negative. Nevertheless, occupancy increased to 94% as at 31 December 2025 (2024:90%), underscoring the resilience of Hysan’s office portfolio amid market headwinds.

The Lee Garden Eight show suite received positive feedback during the ongoing pre-marketing phase.Featuring expansive floorplates, high efficiency, and advanced sustainability features, this new development is well positioned to attract the interest of institutional and professional tenants.

Office demand is anticipated to grow as the financial sector recovers and initial public offerings remain active. Boasting Grade A facilities, exceptional retail amenities and professional management services, the Lee Gardens precinct with its prime location has created a compelling, fully-fledged ecosystem. These offerings, combined with our flexible leasing strategies and sector-focused outreach, will help attract and retain quality multinational and local tenants, while supporting Hysan’s long-term growth strategy in the premium office sector.

Mainland Portfolio

Lee Gardens Shanghai achieved a strong ramp-up, securing commitments by quality tenants for 81% of its total office space. Turnover of the Mainland’s office portfolio increased to HK$101 million (2024:HK$67 million), due primarily to the improvement in occupancy to 72% (2024: 66%). In Mainland China’s competitive office leasing market, we have been pursuing new tenancies and continuously refining our tenant mix to enhance our portfolio’s appeal in the market.

Residential

Hong Kong’s luxury residential leasing market showed steady growth in 2025, driven by an influx of foreign talent that included expatriates relocated to Hong Kong and new arrivals through various talent admission schemes. The increasing number of executives, professionals and graduates entering Hong Kong are representatives of a wide range of sectors including but not limited to financial services.

Hysan’s residential leasing portfolio turnover saw a 5.0% increase to HK$229 million (2024: HK$218 million). Occupancy was 87% as at 31 December 2025 (2024: 73%). The average rental reversion in the sector was positive for renewals, rent reviews and new lettings.

The Group’s capital recycling programme currently encompasses the phased disposal of two blocks of Bamboo Grove, which comprises 124 apartments. This was well received due to improved sentiment in the market. As at 31 December 2025, a total of 92 units had been contracted.

Core Expansion & Strategic Pillars

Commercial Property Development–Lee Garden Eight Superstructure works for Lee Garden Eight, a strategic joint venture with Chinachem Group at Caroline Hill Road, made satisfactory progress during the year with a topping-out ceremony held in November 2025. The project remains on schedule for completion in 2026–an important milestone in our long-term growth plans. Once completed, it will bolster the Lee Gardens precinct’s reputation as one of Hong Kong’s most unique and attractive destinations.

In recognition of our commitment to excellence and sustainable design for a next-generation workplace and retail centrepiece, Lee Garden Eight won“Best Mixed-Use Development (Hong Kong)”and“Best Sustainable Commercial Development (Hong Kong)”in the prestigious Asia Pacific Property Awards 2025- 2026, which is part of the International Property Awards. It also won a Silver Award in the Best New Development category at the MIPIM Asia Awards 2025.

The project also earned numerous design awards from various professional institutions, including the Grand Award for“Projects Under Construction and/or Design–Commercial”in the New Buildings category of the Green Building Award 2025, a Merit Award for“Excellence in Master Landscape Planning/Study”in the Hong Kong Institute of Landscape Architects Award 2024, and a Merit Award for“Excellence in Projects (Sustainability)”in the Hong Kong Institute of Surveyors QS Awards 2024.

With the Lee Garden Eight project, Hysan was named one of Hong Kong’s Top 10 Developers at the Hubexo Asia Awards 2025. All of these recognitions are testament to our vision of creating an urban oasis and a vibrant community in which to live, work and thrive.

Lee Garden Eight is included under“investment properties”in our consolidated statement of financial position.

Residential Property Development–VILLA LUCCA in Tai Po and To Kwa Wan Residential Project VILLA LUCCA, our joint-venture luxury residential development in Tai Po, comprises 262 garden houses and apartments. As at 31 December 2025, a total of 164 units of the project had been contracted.

Market sentiment in Hong Kong’s luxury residential sector improved in 2025, driven by relaxed mortgage loan-to-value ratios and declining interest rates. Favourable government policies, such as lowering the Capital Investment Entrant Scheme threshold for residential properties, created significant interest among Mainland China buyers.

In 2025, cumulative sales and leases remained on track at VILLA LUCCA, reflecting sustained demand for both typical apartments and high-value villa houses. Pricing strategies and incentives supported sales momentum.

The luxury residential market is expected to remain active but selective in 2026. Ongoing economic and geopolitical uncertainties may continue to influence buyer sentiment, resulting in a market characterised by value-driven decisions and a focus on premium product differentiation. We will continue to respond to buyer sentiment and price sensitivity with flexible packages and targeted discounts, particularly for larger lump-sum transactions.
In the mass residential market, Hysan owns a 25% stake in a joint venture to develop the Urban Renewal Authority (URA)’s residential project at Bailey Street/Wing Kwong Street in Kowloon’s To Kwa Wan district. This quality site will be redeveloped into three 24-storey buildings, covering a total area of over 700,000 square feet. The project is a comprehensive mixed-use development, integrating commercial, residential and public components. Hysan will oversee the design and operation of the retail portion of this project.

The development, spearheaded by the URA in collaboration with prominent developers, is one of eight projects in the innovative“District-based Redevelopment New Community”plan for To Kwa Wan. The collective vision is to foster synergy among the projects by creating an accessible and vibrant new community within the older fabric of the area. It also seeks to co-create the Victoria Cove Area, as outlined in the“To Kwa Wan Harbourfront Study”launched by the URA.

By participating in this initiative, the To Kwa Wan Residential Project will establish a new benchmark for future urban renewal strategies and contribute to extending our expertise to other areas in Hong Kong.

During the year, the project’s superstructure construction progressed on schedule, with the topping-out milestone for the residential towers targeted for the first quarter of 2026. The anticipated timeframe for obtaining the occupation permit is around the fourth quarter of 2026 to the first quarter of 2027. Presale consent approval for the residential units was secured from the government in the fourth quarter of 2025, and preparations for the presale are now underway.

The Villa Lucca Project and To Kwa Wan Residential Project are included under“investments in joint ventures”in our consolidated statement of financial position.

Shanghai Investment Property–Grand Gateway 66 This investment property, in which Hysan owns a 26% stake, demonstrated resilient performance during the year. The investment is included in“investments in associates”under our consolidated statement of financial position.

Greater Bay Area Flex–Joint Venture with IWG plc All IWG flexible workspace brands in Hong Kong and the Greater Bay Area are exclusively operated under a Hysan-IWG joint venture.

Demand for flexible working space continued throughout the year, as reflected by the joint venture’s strong and stable occupancy rate and business performance. Leveraging our partnership with IWG, the world’s leading flexible workspace platform, we are optimistic about the growth prospects of the Greater Bay Area Flex business.

As of the end of 2025, the joint venture operated a total of 47 centres across the Greater Bay Area. With this expanding footprint, the joint venture is well-positioned to capture the increasing demand for flexible workspace solutions in various cities across the Greater Bay Area.

The investment is included under“investments in joint ventures”in our consolidated statement of financial position.

Medical and Health–New Frontier Group

New Frontier Group is a leading private healthcare services provider based in Mainland China. It operates a comprehensive healthcare ecosystem, ranging from premium hospitals and clinics to rehabilitation and home healthcare services across the country.

Benefitting from national policies, New Frontier Group’s growth momentum continued in 2025. Its territory-wide hospital and clinical network is now present in 19 cities across the Mainland, while its home healthcare services have extended to 45 cities. New Frontier Group is also actively developing new growth drivers towards emerging opportunities, including integrated oncology centres, health insurance, international medical services, clinical trials and contract research organisations.

Hysan’s minority stake investment in New Frontier Group provides strategic exposure to the Mainland’s fast-growing healthcare sector, where demand for premium healthcare services is on the rise.

The investment is included as part of the“other financial investments”in our consolidated statement of financial position.

Capital Recycling

The Group initiated a HK$8 billion capital recycling programme through the strategic divestment of non- core assets over a 5-year period. The program aligns with our disciplined capital allocation strategy, strengthens our financial position, and positions us to create greater sustainable value. The targeted assets primarily comprise two blocks within the Bamboo Grove, together with built-to-sell units from the VILLA LUCCA and the To Kwa Wan Residential Project. Riding on the improving market sentiment in the luxury residential sector, the Group has made good progress towards the target. As at 31 December 2025, the Group had collected HK$2.1 billion, or 26% of its HK$8 billion capital recycling target. As of 31 December 2025, an additional HK$1.6 billion sales proceed has been contracted and due for completion in 2026. The Group will prioritise deleveraging and redeploying capital toward strategic priorities.

Business Outlook - For the year ended December 31, 2025

Looking ahead, 2026 will present its own set of challenges, yet we are battle-proven and ready. We are confident in our ability to navigate changes and seize opportunities, and that our shared expertise and spirit will carry us forward. Our rich heritage and commitment to bringing unique experience, innovation and sustainability to the community will position us well for continued growth.As always, we adhere to our prudent financial management. Our capital recycling programme, which enables us to unlock value from mature residential assets and redeploy capital towards our strategic priorities, puts us in a strong position to optimise our capital structure through deleveraging. We have made good progress towards the HK$8 billion capital recycling target with 26% achieved during the year riding on the improving market sentiment in the luxury residential sector. While carrying out this programme, we will remain agile, disciplined and purpose-driven to shape the future of Lee Gardens and contribute to Hong Kong’s ongoing development as a global city.

Source: Hysan Development (00014) Annual Results Announcement