For the six months ended 30 June 2026, Kowloon Development Company Limited (KOWLOON DEV) reported profit attributable to shareholders of HK$131 million, a 4.8% increase from HK$125 million a year earlier. Interim earnings per share were unchanged at HK$0.10.
Revenue declined 51.1% year on year to HK$1.19 billion, reflecting a lower volume of Hong Kong property completions. Underlying profit, which excludes fair-value movements on investment properties and interests in property development, dropped 59.6% to HK$126 million. The fair-value swing on investment properties moved from a HK$187 million loss in 1H 2025 to a HK$6 million gain in 1H 2026, cushioning the headline bottom line.
Segment performance • Property development revenue fell 50.4% to HK$0.82 billion; segment profit was HK$249.60 million (–49.9%). • Property investment generated HK$131 million in rental income (–0.8%) and HK$5.51 million in segment profit. • “Other businesses”, including property management and treasury operations, contributed HK$238.55 million in revenue and HK$1.22 million in profit.
Balance sheet and liquidity • Total bank borrowings declined slightly to HK$18.31 billion (31 Dec 2025: HK$18.53 billion), of which HK$11.47 billion is due within 12 months. • Cash and bank balances stood at HK$1.16 billion, placing net bank debt at HK$17.15 billion. • Gearing ratio (net bank borrowings/total equity) was 97.1%, down from 98.8% at end-2025. • Net assets were HK$17.67 billion (31 Dec 2025: HK$17.56 billion).
Dividend The board declared an interim dividend of HK$0.10 per share, payable on 6 January 2027 to shareholders on the register as of 15 December 2026.
Operational highlights • Hong Kong: Upper Manor obtained its occupation permit in April 2026; delivery of 60 sold units generated HK$456 million in recognised proceeds (Group share: HK$334 million). Remaining 51 units were delivered after period-end. • Mainland China: Presales and sales totalled RMB437 million (Group share: RMB377 million). • Development pipeline: 2.7 million sq m of attributable GFA under planning/construction, including major projects at Clear Water Bay Road (Hong Kong, 201,000 sq m GFA) and The Gardenia (Shenyang, 2.00 million sq m GFA).
Cash flow and capital deployment • Construction outlays reached approximately HK$869 million during the period. • Disposals of non-core Mainland China assets since prior years have generated over HK$700 million, supporting debt reduction. • Upcoming presales of the Clear Water Bay Road project are expected to enhance liquidity; management is negotiating refinancing of a syndicated project loan maturing in 1H 2027.
Outlook Management expects second-half revenue to be driven by the full recognition of Upper Manor sales and recurring rental income. Segment launches at Clear Water Bay Road, Foshan and Tianjin developments are planned, while construction in Hong Kong and key Mainland projects continues on schedule.
No shares were repurchased or issued during the period. The company affirmed compliance with Hong Kong’s Corporate Governance Code, noting two disclosed deviations relating to board chair/CEO duality and AGM attendance.