Wharf Holdings reported a sharp drop in interim profit as weakness in mainland China property dragged on results, while the group used a strengthened balance sheet to signal continued confidence in shareholder returns and future Hong Kong investments. Profit attributable to shareholders for the six months ended June 2026 fell 91.03% year on year to HK$48 million, mainly because of revaluation losses on mainland China investment properties and about HK$547 million of impairments on development properties. Underlying net profit, which excludes revaluation losses and other non-recurring items, fell 16.61% to HK$1.7 billion, while revenue declined 5.73% to HK$5.34 billion. The company maintained a first interim dividend of HK$0.2 per share and added a HK$0.2 special interim dividend to mark its 140th anniversary, taking total interim payout to HK$0.4 per share, double the year-earlier level. Chairman and Managing Director Stephen Ng said Wharf had HK$6.2 billion in net cash at the end of June after monetizing HK$3.2 billion from long-term investments, and that Hong Kong property remains the first choice for reinvestment. Hong Kong residential development provided a key offset, with recognized revenue from development properties rising 183.2% to HK$1.34 billion and operating profit jumping 435.5% to HK$166 million, helped by the first recognized sale at 1 Plantation Road and sales of 198 units at Victoria Voyage in Kai Tak, where Wharf holds a 30% stake, generating HK$3.53 billion. Mainland China development property revenue fell 54% to HK$238 million and slipped to an operating loss of HK$3 million as the remaining inventory was concentrated in slow-moving non-residential projects, particularly offices facing oversupply. Ng said that imbalance is unlikely to improve soon. Elsewhere, mainland China investment property revenue rose 1% to HK$2.27 billion and operating profit increased 1% to HK$1.49 billion in Hong Kong dollar terms, though both fell 3% in local currency as retail and office rents remained soft. Logistics revenue was flat at HK$1.07 billion while operating profit dropped 19% to HK$111 million, and hotel revenue rose 4% to HK$323 million with the operating loss narrowing to HK$4 million. Looking ahead, Wharf said several Hong Kong residential projects are ready for launch in the second half and full-year sales could be solid if market absorption stays strong.