4. Focus principally on Hong Kong and the While we will continue to concentrate on Hong Kong Chinese Mainland and the Chinese Mainland, we intend to expand selectively in South East Asia. In Hong Kong, we will continue to focus on reinforcing our existing investment property assets and on seeking 5. Manage our capital base conservatively new sites suitable for transformative developments We intend to maintain a strong balance sheet with a and for residential projects. view to investing in and financing our projects in a We aim to replicate in the Chinese Mainland our disciplined and targeted manner. success in Hong Kong. We intend to take a measured We aim to maintain exposure to a range of debt approach to land purchases in the Chinese Mainland maturities and a range of debt types and lenders. Our and will focus on developments where we can secure current debt profile reflects a mix of revolving and term sites through early engagement with local bank loans and medium term notes. governments who recognise our strengths in developing large-scale mixed-use projects. In implementing the above strategies, the principal risks We will seek residential development opportunities in and uncertainties facing the Group are that the economies the Chinese Mainland. These are likely to be ancillary in which it operates (in particular Hong Kong and the to our mixed-use developments. However, in the right Chinese Mainland) will not perform as well in the future as locations and cities we may also consider standalone they have in the past and the uncertainties as to whether residential development opportunities. Our residential this will happen. developments will be aimed at buyers of luxury and high quality properties, where we believe we have a competitive advantage. 29 SWIRE PROPERTIES ANNUAL REPORT 2022