MANAGEMENT DISCUSSION & ANALYSIS | REVIEW OF OPERATIONS Underlying Profit MOVEMENT IN HK$M UNDERLYING PROFIT 10,000 9,532 -859 -73 +153 -47 8,706 8,000 Underlying profit nrease in profit 6,000 in 2021 (Restated) fro property trading 4,000 Derease in profit nrease in losses fro diestent fro otels 2,000 Derease in profit Underlying profit fro property in 2022 inestent 0 2022 2021 Our reported profit attributable to shareholders in 2022 was portfolio was generally resilient, with solid occupancy. HK$7,980 million, compared to a profit of HK$7,112 million The retail portfolio was adversely affected by COVID-19 in in 2021. the early part of the year. Footfall and tenants’ sales Underlying profit attributable to shareholders (which gradually recovered from the second quarter of 2022, as principally adjusts for changes in valuation of investment COVID-19 related social distancing measures were properties) decreased by HK$826 million from HK$9,532 adjusted. The HKSAR Government’s consumption voucher million in 2021 to HK$8,706 million in 2022. The decrease scheme also helped. mainly reflected the reduction in profit from the sale of car In the Chinese Mainland, the six shopping malls were parking spaces in Hong Kong. affected to varying degrees by COVID-19 and related Recurring underlying profit (which excludes the profit from measures from the second quarter of 2022. divestments) was HK$7,176 million in 2022, compared with In the U.S.A., retail sales and gross rental income were solid. HK$7,143 million in 2021. The underlying profit from property trading in 2022 mainly Recurring underlying profit from property investment reflected the completion of sales of 27 units at EIGHT STAR decreased in 2022. This mainly reflected lower office rental STREET in Hong Kong and the share of profits from sales at income from Hong Kong and lower retail rental income The River project in Vietnam. from the Chinese Mainland. The hotel businesses in Hong Kong and the Chinese In Hong Kong, despite a weak office market due to the Mainland were adversely affected by COVID-19 associated economic uncertainty and increased supply, the office travel restrictions. The hotels in the U.S.A. performed better. VALUATION OF HK$M INVESTMENT 300,000 PROPERTIES 250,000 200,000 150,000 Completed 100,000 Under development 50,000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 34