Review of Operations Six months ended Year ended 30th June 31st December 2023 2022(2) 2022 HK$M HK$M HK$M Restated Revenue Gross Rental Income derived from Offices 2,960 3,046 6,003 Retail 3,510 2,986 5,849 Residential 207 183 374 (1) Other Revenue 55 50 114 Property Investment 6,732 6,265 12,340 Property Trading 89 383 921 Hotels 476 262 565 Total Revenue 7,297 6,910 13,826 Operating Profit/(Losses) derived from Property investment From operations 4,254 4,081 7,702 Sale of interests in investment properties – 31 571 Valuation (losses)/gains on investment properties (1,332) 701 801 Property trading (12) 218 209 Hotels (37) (137) (259) Total Operating Profit 2,873 4,894 9,024 Share of Post-tax Profit from Joint Venture and Associated Companies 524 480 1,455 Profit Attributable to the Company’s Shareholders 2,223 4,348 7,980 (1) Other revenue is mainly estate management fees. (2) Following a change in accounting policy resulting from the agenda decision approved by the IFRS Interpretation Committee on “Lessor Forgiveness of Lease Payments (IFRS 9 and IFRS 16)”, the comparative figures for the six months ended 30th June 2022 have been restated. Refer to note 2(e) to the financial statements for further details. Additional information is provided in the following section to reconcile reported and underlying profit attributable to the Company’s shareholders. These reconciling items principally adjust for the net valuation movements on investment properties and the associated deferred tax in the Chinese Mainland and the U.S.A., and for other deferred tax provisions in relation to investment properties. In Hong Kong and the U.S.A., the Group’s investment properties recorded net property valuation losses of HK$2,028 million and HK$81 million respectively in the first half of 2023. In the Chinese Mainland, investment properties recorded net property valuation gains of HK$461 million. There are further adjustments to remove the effect of the movement in the fair value of the liability in respect of a put option in favour of the owner of a non- controlling interest and remeasurement gains on interests in joint venture companies which became subsidiary companies after completion of acquisition. Amortisation of right-of-use assets classified as investment properties is charged to underlying profit. 17