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20230815 2023IR Eng v2 11.8.2023 [FINAL]

Stock Code: 01972 Interim Report 2023 www.swireproperties.com

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Contents 2 Company Profile 8 Financial Highlights 9 Chairman’s Statement 13 Chief Executive’s Statement 17 Review of Operations 45 Financing 51 Report on Review of Condensed Interim Financial Statements 52 Condensed Interim Financial Statements 57 Notes to the Condensed Interim Financial Statements 80 Supplementary Information 83 Glossary 84 Financial Calendar and Information for Investors

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COMPANY PROFILE Swire Properties Limited (the “Company”) is a leading developer, owner and operator of mixed-use, principally commercial, properties in Hong Kong and the Chinese Mainland, with a record of creating long-term value by transforming urban areas. Our business comprises three elements: property investment, property trading and hotel investment. 2 Swire Properties Limited Interim Report 2023

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Founded in Hong Kong in 1972, the Company is listed on The Stock Exchange of Hong Kong Limited and, with its subsidiaries, employs around 5,600 people. The Company’s shopping malls are home to more than 2,200 retail outlets. Its offices house a working population estimated to exceed 72,000. Our investment portfolio in Hong Kong comprises Taikoo Place, Pacific Place and Cityplaza. In the Chinese Mainland, the Company has six major commercial projects in operation in Beijing, Guangzhou, Chengdu and Shanghai. The Company has interests in the luxury and high quality residential markets in Hong Kong, Indonesia, Vietnam and Thailand. There are also land banks in Miami, U.S.A. Swire Hotels develops and manages hotels in Hong Kong, the Chinese Mainland and the U.S.A. 3

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CREATIVE TRANSFORMATION 4 Swire Properties Limited Interim Report 2023

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Captures what we do and how we do it. It underlines the creative mindset and long-term approach that enables us to seek out new perspectives, and original thinking that goes beyond the conventional. It also encapsulates our ability to unlock the potential of places and create vibrant destinations that can engender further growth and create sustainable value for our stakeholders. 5

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2023 FIRST HALF SUSTAINABLE DEVELOPMENT HIGHLIGHTS “Our vision is to be the leading sustainable development performer in our industry globally by 2030.” Guy Bradley, Chairman 6 Swire Properties Limited Interim Report 2023

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Included in the 1st edition of the “S&P Sustainability Yearbook (China)” and the only real estate company to make the Top 1% S&P Global ESG Score (China) for our ESG efforts. Recognised as Hong Kong’s Top 20 Most Attractive Employer at the Randstad Employer Brand Awards 2023. First Hong Kong company to issue “Green Dim Sum” Renminbi Public Bonds, totalling RMB 3.2 billion. 76 tenants committed to the Green Performance Pledge, representing approximately 40%* of office tenants. Tenant participation in Hong Kong jumped fivefold in just two years. 84 F&B outlets across Swire Properties’ Hong Kong and Chinese Mainland portfolios have received the Green Kitchen Award. Celebrated 15 years of partnership with Tsinghua University and announced our new commitment of investing RMB 15 million to fund research on energy saving and decarbonisation technologies to combat climate change. Taikoo Li Sanlitun’s two buildings piloted a Photovoltaics, Energy Storage, Direct Current and Flexible (“PEDF”) solution, which was awarded The Top 10 Building PEDF Best Practices at the first China PEDF Annual Conference in July 2023. Two Taikoo Place and Six Pacific Place are the first buildings in Hong Kong to be both WiredScore and SmartScore Platinum certified. * Measured by occupied lettable floor area (“LFA”) of wholly owned office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo Hui Guangzhou. 7

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Financial Highlights Six months ended 30th June 2023 2022(e) Note HK$M HK$M Change Restated Results Revenue 7,297 6,910 +6% Profit attributable to the Company's shareholders Underlying (a), (b) 3,901 4,169 -6% Recurring underlying (a), (b) 3,892 3,672 +6% Reported 2,223 4,348 -49% Cash generated from operations 4,221 3,933 +7% Net cash outflow before financing (3,387) (1,939) N/A HK$ HK$ Earnings per share Underlying (c), (d) 0.67 0.71 -6% Recurring underlying (c), (d) 0.67 0.63 +6% Reported (c), (d) 0.38 0.74 -49% Dividend per share First interim 0.33 0.32 +3% 30th June 31st December 2023 2022 HK$M HK$M Change Financial Position Total equity (including non-controlling interests) 288,399 292,258 -1% Net debt 29,514 18,947 +56% Gearing ratio (a) 10.2% 6.5% +3.7%pt. HK$ HK$ Equity attributable to the Company’s shareholders per share (a) 48.79 49.44 -1% Notes: (a) Refer to glossary on page 83 for definition. (b) A reconciliation between reported profit and underlying profit attributable to the Company’s shareholders is provided on page 18. (c) Refer to note 11 in the financial statements for the weighted average number of shares. (d) The percentage change is the same as the corresponding percentage change in profit attributable to the Company’s shareholders. (e) 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. In this connection, revenue for the six months ended 30th June 2022 has been increased by HK$212 million while underlying and reported profit has each been increased by HK$29 million. Refer to note 2(e) to the financial statements for further details. Six months ended 30th June 2023 2022 HK$M HK$M Restated Underlying profit/(losses) by segment Property investment 3,939 3,872 Property trading (37) (22) Hotels (10) (178) Recurring underlying profit 3,892 3,672 Divestment 9 497 Underlying profit 3,901 4,169 8 Swire Properties Limited Interim Report 2023

Chairman’s Statement Dear shareholders, In the second half of 2023, we look forward to reaching a major milestone with the completion of the latest phase As we reach the mid-point of a busy year, I am pleased to of our Taikoo Place redevelopment. report on the exceptional progress we have made so far in 2023. With approximately 40% of our HK$100 billion investment plan now committed to new investments, Profits and Sustained we are well on our way to charting a clear path for our Dividend Growth future growth. The relaxation of COVID-19 restrictions and the Our reported profit attributable to shareholders in the reopening of the border with the Chinese Mainland in first half of 2023 was HK$2,223 million, compared with January 2023 has been integral to the recovery in HK$4,348 million in the first half of 2022. Hong Kong. As Hong Kong recovers and reinforces Recurring underlying profit increased by HK$220 million its standing as a global financial hub, we will continue from HK$3,672 million in the first half of 2022 to to work closely with the HKSAR Government and our HK$3,892 million in the first half of 2023, which mainly business partners to contribute to this post-pandemic reflected the strong recovery of our retail portfolio and resurgence. hotels in Hong Kong and the Chinese Mainland. Our We are encouraged by the positive market sentiment, underlying profit attributable to shareholders decreased particularly with the rebound in our retail malls over the by HK$268 million from HK$4,169 million in the first half past six months. We remain well positioned to capture of 2022 to HK$3,901 million in the first half of 2023, growing demand. primarily due to the delay in sales of car parking spaces at our Taikoo Shing residential development in Hong Kong. Whilst challenges still lie ahead, particularly in the We declared a first interim dividend for 2023 of HK$0.33 Hong Kong office sector, we remain optimistic as our per share. This represents an increase of 3% from the first flagship developments in Hong Kong – Taikoo Place interim dividend paid in 2022. The first interim dividend and Pacific Place – continue to undergo a remarkable for 2023 will be paid on Thursday, 12th October 2023 to transformation, thanks to our original approach to shareholders registered at the close of business on the creative placemaking. record date, Friday, 8th September 2023. Shares of the In the Chinese Mainland, our Taikoo Li and Taikoo Hui Company will be traded ex-dividend from Wednesday, brands are recognised for providing quality experiences 6th September 2023. and innovative retail trends. We are moving forward with Our policy is to deliver sustainable growth in dividends our expansion plans in tier-one and emerging tier-one and to pay out approximately half of our underlying profit cities. Two large-scale investments are now well in ordinary dividends over time. With the benefit of our underway in Xi’an and Sanya. planned investments, we aim to deliver mid-single digit annual growth in dividends. 9

Chairman’s Statement Strengthening our Flagship With HK$30 billion allocated to our Hong Kong portfolio, Office Brands we will continue to invest in Taikoo Place. Our ownership of the Zung Fu Industrial Building and the Wah Ha The ongoing transformation of Taikoo Place has seen Factory Building, as well as a site on Tong Chong Street, the area evolve into a Global Business District, and will form part of our overall masterplan for the district. become one of the most sought-after business We are also making good progress on Six Pacific Place, addresses in Hong Kong. our newest triple Grade-A office tower within our Pacific In line with our HK$100 billion investment plan, we will Place portfolio in Admiralty. The tower is targeted to be continue to pursue our ambitious plans for Taikoo Place completed by the end of this year. Adjacent to this is Five to build a vibrant and sustainable community. Our latest Pacific Place, which we have upgraded to create a shared triple Grade-A tower, Two Taikoo Place, has been visual identity with Six Pacific Place, alongside shared well-received by the market, due to its industry leading amenities, including a sky garden, carpark spaces and ESG credentials. F&B offerings. Together, these buildings will strengthen the Pacific Place office brand and add diversity as we We are looking forward to launching new features from expand the portfolio further eastwards. later this year, including elevated walkways which will improve connectivity between the towers; Taikoo Square, part of our additional 70,000 square feet of Reinforcing Core Assets & green open space, which has been designed to promote Building Residential Pipelines biodiversity with water features and native vegetation; as well as diverse retail and al fresco dining concepts at Our Hong Kong malls have shown strong signs of street level, all activated by a range of community recovery over the past six months, following the lifting of engagement initiatives. COVID-19 travel restrictions and improved market Taikoo Place is a showcase of our commitment to sentiment. Riding on various large-scale campaigns creative placemaking. We have invested in a hosted by the HKSAR Government, we anticipate that people-centric masterplan for the area, focusing on footfall and sales will continue to improve for the rest of creating a working environment which promotes 2023. We remain focused on strengthening our tenant employees’ health and well-being. In the post-pandemic mix, improving our loyalty programmes and upgrading era, we believe this is the future of work, and we are our amenities. Diversity is key to our retail strategy, and confident that our vision for the district will stand us in we will continue to curate experiences in our malls which good stead. reflect new trends while addressing the needs of our customers, with a keen focus on wellness, sustainability, the arts and experiential retail. 10 Swire Properties Limited Interim Report 2023

With HK$20 billion allocated to our trading portfolio distinctive design which places the Small Wild Goose (including in South East Asia), we continue to develop our Pagoda as the focal point, alongside architectural residential plans, with an exciting pipeline of new projects features which pay tribute to the heritage of the site. In in our home market of Hong Kong, together with new addition, arts and cultural elements will be a key focus investments in South East Asia. We remain focused on as we develop our vision for this project. exploring opportunities in four key markets in South East Asia – Ho Chi Minh City, Jakarta, Singapore and Bangkok. Another major investment is our upcoming retail project Earlier this year, we announced our first investment in in Sanya, Hainan Province. Under the Hainan Free Trade Bangkok, Thailand, where we will be building a luxury Port Policy, Sanya is fast developing as an international residential development in the city’s central leisure destination and consumption hub. This project business district. marks our first-ever resort-style retail project, and our design concept will embrace Sanya’s coastline and history of traditional fishing settlements. Various New Investments in the sustainability and wellness elements, as well as art and Chinese Mainland cultural zones, have been incorporated to curate a unique, premium retail experience. We have allocated HK$50 billion of our investment plan In February, we obtained 100% ownership of to expanding our presence in the Chinese Mainland. Sino-Ocean Taikoo Li Chengdu after we completed We have made good progress on that front, with strategic the acquisition of the remaining interest in the project. investments in two new markets – Xi’an and Sanya. We are excited to announce the renaming of this Our goal is to double our gross floor area in the region by signature project in August. 2032. Last year, we announced Taikoo Li Xi’an, a large-scale, retail-led project which marks our first We remain focused on expanding our presence in the investment in the ancient city of Xi’an. The city has one Greater Bay Area. Leveraging the success of Taikoo Hui of the fastest growing economies in north-western China, in Guangzhou, we are keen to identify more investment with a predominantly young and affluent population. opportunities over the next decade. Currently we are The project is situated between the ancient Chang’an exploring major potential investments in Julong Wan in district and modern Xi’an city centre, and enjoys a prime Guangzhou, Pudong in Shanghai and Futian in location within the Small Wild Goose Pagoda historical Shenzhen. We have also announced a new hotel under and cultural zone – a UNESCO World Heritage site. The House Collective brand in the Nanshan district We intend to do justice to our surroundings, with a of Shenzhen. 11

Chairman’s Statement Leadership in Sustainable Conclusion Development As we plan ahead for the next decade of growth, it is As a responsible developer, we are increasingly looking to increasingly important that we accelerate our leadership demonstrate leadership in sustainability. This year, we in ESG and the digital transformation of our business. will pilot the adoption of internal carbon pricing to The world is changing at a rapid pace, and as new trends determine the potential impact of carbon emissions from emerge across our key markets, we need to remain agile our investments, and quantify carbon risks to our and ready to respond to this evolving landscape. business operations. This will take the form of an internal Looking ahead to the next six months, we expect to see carbon fee, which links each unit of carbon emissions to a continued recovery trends. The reopening of Hong Kong fixed cost, allowing us to reallocate capital towards and the border with the Chinese Mainland has marked a low-carbon investments. significant turning point in the region’s post-pandemic We are also the only company from Hong Kong and the recovery, and we are determined to play our part in Chinese Mainland to actively participate in the Taskforce helping to raise Hong Kong’s profile and competitiveness on Nature-related Financial Disclosures (TNFD). as a global financial centre and travel and tourism This global taskforce is developing a corporate risk destination. management and disclosure framework to help I should like to thank our shareholders, our partners and businesses identify and mitigate nature-related impacts the wider community for your continued support and and opportunities. We believe TNFD’s new draft engagement. My appreciation must also go to our framework is a pioneering tool to help address the employees for their creativity, hard work and dedication. challenges of global biodiversity loss, and we are pleased to play a role in spearheading this important new global initiative. Aside from our environmental initiatives, we remain committed to community care. We continue to focus on fostering arts and culture and youth development, and our staff volunteer programme – the Community Guy Bradley Ambassadors – are the pride of Swire Properties, with Chairman over 20 years of supporting our placemaking efforts and Hong Kong, 10th August 2023 caring for our communities. We will continue to leverage our experience and expertise to contribute positively to our local neighbourhoods. 12 Swire Properties Limited Interim Report 2023

Chief Executive’s Statement Dear shareholders, Underlying profit decreased by HK$268 million to HK$3,901 million in the first half of 2023, principally The first six months of 2023 has marked a period of reflecting a short-term delay in the sale of non-core recovery. We were pleased to see a strong rebound for assets in Hong Kong. our retail business, in both Hong Kong and the Chinese Mainland, as consumer confidence improved following Our Hong Kong retail portfolio has recovered remarkably the reopening of the border with the Chinese Mainland well, with an improvement in consumer sentiment, and the lifting of pandemic-related restrictions in thanks to the lifting of all travel restrictions and COVID-19 Hong Kong. related measures. Our investment in marketing and loyalty initiatives, together with digitally-advanced We have made significant progress with our HK$100 campaigns to interact with customers, have all driven billion investment plan, and we are focused on building significant business recovery in our malls in Hong Kong out our pipelines of new projects across our core markets over the past few months. Sales have improved and and in new cities. returned to pre-pandemic levels in some of our malls. We are delighted to be working side by side with the In Hong Kong, the office market is weak, given increased HKSAR Government as it welcomes a new era for the city. availability (due to vacancy and new supply), and We have every confidence in the Government’s various demand for office space remains subdued, reflecting initiatives to strengthen Hong Kong’s competitiveness as continued economic uncertainty. Nevertheless, our office a world-class international destination, and we are portfolio has been resilient, with solid occupancy rates. determined to support Hong Kong’s strategic role in the Leasing activity has picked up since the reopening of the development of the Greater Bay Area. border, with increased requests for viewing. We remain focused on the future. As we grow our In the Chinese Mainland, foot traffic has improved business, we will continue to demonstrate leadership in significantly and retail sales have exceeded sustainable development, as well as leveraging innovative pre-pandemic levels for many of our malls, since new technologies to ensure that we are ready for new pandemic-related restrictions were lifted. Our office challenges ahead. portfolio has been resilient despite a weak office market. We recorded a small underlying loss from our property Financial Results at a Glance trading activities in the first half of 2023 as a result of sales and marketing expenses incurred for several Our recurring underlying profit increased by HK$220 residential trading projects. million to HK$3,892 million in the first half of 2023. This mainly reflected higher retail rental income and higher Our hotel businesses in Hong Kong and the Chinese operating profit before depreciation from our hotels in Mainland recovered strongly following the lifting of Hong Kong and the Chinese Mainland, partly offset by COVID-19 restrictions and the reopening of the border. lower office rental income from Hong Kong. 13

Chief Executive’s Statement Our Future Prospects Looking at the office sector in Hong Kong, we expect it to remain weak for the balance of 2023, with increased The outlook for our retail business in Hong Kong remains vacancy rates, new supply, and an uncertain positive, given the strong recovery over the past six macro-economic outlook. In spite of the current months. The increase in inbound tourism as well as an challenges, the performance of our office portfolio has improvement in consumer confidence has bolstered our remained resilient, and we are making very good progress business, and we are seeing healthy footfall and sales with the transformation of Taikoo Place, which is nearing across our Hong Kong malls. As we look ahead, we are the latest phase of its redevelopment. Two Taikoo Place planning to improve our tenant mix and upgrade our is 56% committed, with 17 floors now handed over. amenities. We will strengthen connections with our Taikoo Garden has been officially opened, and customers, through our popular loyalty programmes, and anticipation is high for other new features, including the we will continue to collaborate with world-class partners remaining 70,000 square feet of green open space which to curate experiential campaigns for customers. will promote Hong Kong’s biodiversity, as well as our connecting walkways and new outdoor dining amenities. In the Chinese Mainland, we are seeing strong demand from major international brands to expand their presence Six Pacific Place is also making good progress. Together in the region. Our Taikoo Li and Taikoo Hui brands remain with Five Pacific Place, we are confident that these best-in-class, and we are focused on collaborating with projects will strengthen our flagship Pacific Place brand our partners to curate innovative retail experiences in in Admiralty. our malls. We will continue to focus our efforts on Taikoo Place and The Chinese Mainland remains a core market for our Pacific Place where our fundamentals remain strong, future growth, and we are optimistic about the future, thanks to our investment in digital transformation, solid with plans to double our GFA in the region under our ESG credentials and excellent amenity provisions which HK$100 billion investment plan. We will continue to appeal to a diverse tenant base. invest in tier-one cities such as Beijing, Shanghai and Guangzhou, and we are excited to be testing new waters On the residential front, we are making headway with an in new markets such as Xi’an and Sanya, where we have ambitious pipeline of six projects under development in two new large-scale retail projects under development. Hong Kong and South East Asia. Sales at EIGHT STAR Following our acquisition of the remaining 50% equity STREET in Hong Kong continue to perform well, interest in Sino-Ocean Taikoo Li Chengdu, we are also complementing our wider Pacific Place portfolio. In Wong exploring retail-led opportunities in Guangzhou, Shanghai Chuk Hang, our joint venture project was officially named and Shenzhen. “LA MONTAGNE” and has been launched for sale. There is more in the pipeline for Hong Kong, including our joint venture project in Chai Wan which is under construction and our latest project at 269 Queen’s Road East, which will strengthen our presence in the Wan Chai area. 14 Swire Properties Limited Interim Report 2023

In South East Asia, sales at The River and Empire City in introducing more initiatives, including the new Ho Chi Minh City have performed well, while in Jakarta, “GPP Academy” in collaboration with the Business Savyavasa has been launched for sale. We are also Environment Council, to help tenants meet and exceed excited to have announced our first project in Bangkok, their ESG commitments. which will help us to establish a meaningful presence in South East Asia. We are piloting a Photovoltaics, Energy Storage, Direct Current and Flexible (“PEDF”) solution in two buildings in Our hotel business has been making a significant Taikoo Li Sanlitun in Beijing, to explore more efficient recovery, with all our properties enjoying a strong ways to utilise renewable energy on-site. The installation rebound after the reopening of the international borders. was completed earlier this year, and we expect the project will significantly lower energy consumption and The team is making good progress with our plans to have a positive impact on our portfolio. expand The House Collective and EAST brands under a new, third-party management agreement model. Our employees are integral to realising our SD 2030 In addition to The House Collective properties under Strategy. We are seeking to prioritise wellness through construction in Shenzhen and Tokyo, we currently have a various programmes and related policies, as well as number of new hotels in the pipeline to expand both The fostering an inclusive workplace where they can thrive. House Collective and EAST brands. This is an ongoing journey, however we were pleased to be included in the 2023 Bloomberg Gender-Equality Index, which recognised our commitment to achieving Building Sustainable Partnerships gender equality in our workplace. Guy has written about some of the pioneering initiatives we have been involved in within the sustainability sector. Giving Back to Our Community As the threat of climate change increases, we need to embrace innovation and seek new solutions to increase The launch of Quarryside in June was an important our climate resilience, proactively manage risks, and milestone for our placemaking efforts in Quarry Bay. support the transition to a net zero economy. It also highlights the benefits of public and private partnerships between the government and the private Our Sustainable Development 2030 Strategy continues to sector. Along with the Swire Group Charitable Trust, lead us forward, while our focus on strengthening tenant we were very pleased to support St. James’ Settlement partnerships has underpinned our approach to advancing in developing this harbourfront site into a vibrant beyond our sustainability goals. Our proprietary Green community space, leveraging our placemaking Performance Pledge has been well-received since its experience and expertise. The site is now open to host launch in 2022, with over 70 tenants from our office various events for the enjoyment of the public. portfolio in Hong Kong now signed up. Building on this successful landlord-tenant collaboration, we will be 15

Chief Executive’s Statement In this spirit, we are delighted to be partnering with the Industry Council. In May, Ambassadors from seven cities Home Affairs department to host a three-day Summer joined a trip to Chengdu, where they supported Festival at Quarryside in August, in support of the HKSAR under-served community groups. This marks a new Government’s citywide “Happy Hong Kong” initiative. milestone in our community work in the wake of the We hope that by engaging community members, as well pandemic, as the borders reopen and our colleagues can as artists and business partners across different sectors, once again collaborate on new initiatives. we can contribute to Hong Kong’s resurgence and promote collaboration and engagement in our local communities. Conclusion Empowering youth remains a priority in our community Our business remains on a solid financial footing, work. This summer, we helped to launch the second anchored by the positive recovery trends we are seeing edition of the Bi-city Youth Cultural Leadership across most of our key markets. With a strong Programme, in collaboration with The Hong Kong Palace performance over the past six months, we remain Museum. Students in Hong Kong and Beijing are now optimistic about the rest of 2023 and beyond, and we will able to meet in person, and exchange knowledge and continue to focus on realising our HK$100 billion ideas. In addition, we are collaborating with the Eastern investment plan while pursuing an ambitious growth District of the HKSAR Government to engage secondary strategy across our core markets in Hong Kong, the students as part of our Swire Properties Placemaking Chinese Mainland and South East Asia. Academy (SPPA). The students will help to integrate digital innovation and arts elements at our annual Our achievements this year would not have been possible White Christmas Street Fair. We are keen to give the without the fantastic team at Swire Properties. I should younger generation more opportunities as they find like to thank all our dedicated employees, as well as our their place in the world, and we hope that programmes shareholders, partners and the wider community for your like the SPPA can help inspire them with a sense of place continued support. and community. Our longstanding 4,000-member strong volunteer initiative, the Community Ambassador Programme, continues to make a positive impact. Its signature programme “BOOKS for LOVE @ $10” won the Gold Award in the “Excellence in Construction Industry Volunteering Tim Blackburn Project” category at the Sixth Construction Industry Chief Executive Volunteer Awards, organised by the Construction Hong Kong, 10th August 2023 16 Swire Properties Limited Interim Report 2023

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

Review of Operations Six months ended Year ended 30th June 31st December Underlying Profit Reconciliation 2023 2022 2022 Note HK$M HK$M HK$M Restated Profit Attributable to the Company’s Shareholders per Financial Statements 2,223 4,348 7,980 Adjustments in respect of investment properties: Valuation losses/(gains) in respect of investment properties (a) 1,648 (755) (1,726) Deferred tax on investment properties (b) 347 213 1,402 Valuation gains realised on sale of interests in investment properties (c) 29 299 915 Depreciation of investment properties occupied by the Group (d) 11 11 22 Non-controlling interests’ share of valuation movements less deferred tax (14) 75 144 Movement in the fair value of the liability in respect of a put option in favour of the owner of a non-controlling interest (e) 4 20 49 Remeasurement gains on interests in joint venture companies which became subsidiary companies after completion of acquisition (f) (306) – – Less amortisation of right-of-use assets reported under investment properties (g) (41) (42) (80) Underlying Profit Attributable to the Company’s Shareholders 3,901 4,169 8,706 Profit from divestment (9) (497) (1,530) Recurring Underlying Profit Attributable to the Company’s Shareholders 3,892 3,672 7,176 Notes: (a) This represents the net valuation movements as shown in the Group’s consolidated statement of profit or loss and the Group’s share of net valuation movements of joint venture companies. (b) This represents deferred tax movements on the Group’s investment properties, plus the Group’s share of deferred tax movements on investment properties held by joint venture companies. These comprise deferred tax on valuation movements on investment properties in the Chinese Mainland and the U.S.A., and deferred tax provisions made in respect of investment properties held for the long term where it is considered that the liability will not reverse for some considerable time. It also includes certain tax adjustments arising from transfers of investment properties within the Group. (c) Prior to the implementation of HKAS 40, changes in the fair value of investment properties were recorded in the revaluation reserve rather than the consolidated statement of profit or loss. On sale, the valuation gains/(losses) were transferred from the revaluation reserve to the consolidated statement of profit or loss. (d) Prior to the implementation of HKAS 40, no depreciation was charged on investment properties occupied by the Group. (e) The value of the put option in favour of the owner of a non-controlling interest is calculated principally by reference to the estimated fair value of the portion of the underlying investment property in which the owner of the non-controlling interest is interested. (f) The remeasurement gains on interests in joint venture companies were calculated principally by reference to the estimated market value of the underlying properties portfolio of the joint venture companies, netting off with all related cumulative exchange difference. (g) HKFRS 16 amends the definition of investment property under HKAS 40 to include properties held by lessees as right-of-use assets to earn rentals or for capital appreciation or both, and requires the Group to account for such right-of-use assets at their fair value. The amortisation of such right-of-use assets is charged to underlying profit. 18 Swire Properties Limited Interim Report 2023

Underlying Profit Movement in Underlying Profit Underlying profit Increase in losses in the first half of 2022 from property trading Decrease in profit Decrease in losses from divestment from hotels Increase in profit from Underlying profit in property investment the first half of 2023 Our reported profit attributable to shareholders in the Recurring underlying profit from property investment first half of 2023 was HK$2,223 million, compared to a increased in the first half of 2023. This mainly reflected profit of HK$4,348 million in the first half of 2022. There higher retail rental income from Hong Kong and the were net fair value losses on investment properties in the Chinese Mainland, partly offset by lower office rental first half of 2023 of HK$1,648 million, compared with net income from Hong Kong. In Hong Kong, the retail fair value gains on investment properties of HK$755 portfolio has significantly recovered, following the lifting million in the first half of 2022 (primarily arising from fair of all travel restrictions and COVID-19 related measures, value gains in relation to certain properties held under together with the investment in marketing and loyalty development). initiatives. Despite a weak office market (reflecting subdued demand and increased supply), the office Underlying profit attributable to shareholders portfolio in Hong Kong was resilient, with solid (which principally adjusts for changes in valuation of occupancy. In the Chinese Mainland, foot traffic investment properties) decreased by HK$268 million improved significantly and retail sales strongly exceeded from HK$4,169 million in the first half of 2022 to pre-pandemic levels for many of our malls, after the HK$3,901 million in the first half of 2023. The decrease COVID-19 associated restrictions were lifted. principally reflected the reduction in profit from the sale of car parking spaces in Hong Kong. The small underlying loss from property trading in the first half of 2023 was primarily a result of sales and Recurring underlying profit in the first half of 2023 marketing expenses incurred for several residential (which excludes the profit from divestment) was trading projects. HK$3,892 million, compared with HK$3,672 million in the first half of 2022. The hotel businesses in Hong Kong and the Chinese Mainland recovered strongly following the lifting of COVID-19 measures and the reopening of the border. The hotels in the U.S.A. performed well. 19

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Review of Operations HK$100 Billion Capital commitment for secured new projects Investment Plan 39% COMMITTED Committed Remaining target In March 2022, the Company announced a plan to invest HK$100 billion over ten years in development projects in Hong Kong and the Chinese Mainland and in residential trading projects (including in South East Asia). The target allocation is HK$30 billion to Hong Kong, HK$50 billion to the Chinese Mainland and HK$20 billion to residential trading projects (including in South East Asia). At 4th August 2023 approximately HK$39 billion of the planned investments had been committed (HK$17 billion to the Chinese Mainland, HK$11 billion to Hong Kong and HK$11 billion to residential trading projects). Major committed projects include a retail-led mixed-use development in Xi’an, residential developments at Chai Wan Inland Lot No. 178 and at 269 Queen’s Road East in Hong Kong, a retail-led development in Sanya, office and other commercial use developments at 8 Shipyard Lane and at 1067 King’s Road in Hong Kong, and a residential development in Bangkok. Uncommitted projects include further retail-led mixed-use projects in Tier 1 and emerging Tier 1 cities in the Chinese Mainland, including Guangzhou, Shanghai and Beijing with a plan to double our gross floor area in the Chinese Mainland, further expansion at Pacific Place and Taikoo Place in Hong Kong as well as further residential trading projects in Hong Kong, the Chinese Mainland, Miami and South East Asia. 20 Swire Properties Limited Interim Report 2023

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Key Developments In July 2023, the Group obtained full ownership of Wah Ha Factory Building in Quarry Bay, Hong Kong. In December 2022, the Group entered into three Together with the adjacent wholly-owned Zung Fu conditional agreements with the Sino-Ocean group to Industrial Building, the two sites are intended to be acquire further interests in Sino-Ocean Taikoo Li redeveloped for office and other commercial uses. Chengdu. Under the first agreement (which was completed in December 2022), the Group’s interest in In July 2023, a joint venture company in which the Sino-Ocean Taikoo Li Chengdu increased from 50% to Group holds a 25% interest started the pre-sales of 65%. Under the second agreement (which was LA MONTAGNE, a residential development in completed in February 2023), the Group’s interest in Wong Chuk Hang, Hong Kong. Superstructure works of the property management of Sino-Ocean Taikoo Li the development are in progress. Chengdu increased to 100%. Under the third agreement (which was completed in February 2023), the Group’s interest in the investment properties of Portfolio Overview Sino-Ocean Taikoo Li Chengdu increased to 100%. The consideration was RMB1,000 million under the first The aggregate gross floor area (“GFA”) attributable to agreement, RMB59 million under the second the Group at 30th June 2023 was approximately 34.5 agreement and RMB4,491 million under the third million square feet. agreement. Of the aggregate GFA attributable to the Group, In February 2023, the Group acquired a 40% interest in approximately 30.6 million square feet are investment a site located on Wireless Road in Lumphini sub-district properties and hotels, comprising completed investment in Pathum Wan district, Bangkok for a consideration of properties and hotels of approximately 24.7 million approximately THB2.4 billion. In partnership with City square feet and investment properties under Realty Co. Ltd., the site is expected to be developed for development or held for future development of residential purposes with a site area of approximately approximately 5.9 million square feet. In Hong Kong, 136,000 square feet. the investment property and hotel portfolio comprises approximately 13.7 million square feet attributable to the In June 2023, the Group announced plans to develop a Group of primarily Grade-A office and retail premises, luxury residential project on Brickell Key in Miami, hotels, serviced apartments and other luxury residential which will include the redevelopment of the existing accommodation. In the Chinese Mainland, the Group has Mandarin Oriental Miami hotel. The project, called interests in eight major commercial developments in One Island Drive, will consist of two towers. The first prime locations in Beijing, Guangzhou, Chengdu, tower will comprise luxury private residences managed Shanghai, Xi’an and Sanya. These developments are by Mandarin Oriental. The second tower will comprise a expected to comprise approximately 14.8 million square new Mandarin Oriental hotel as well as private feet of attributable GFA when they are all completed. Of residences and hotel residences. Sales are expected to this, 10.6 million square feet has already been completed. launch in early 2024. Outside Hong Kong and the Chinese Mainland, the investment property portfolio comprises the Brickell City Centre development in Miami, U.S.A. 21

Review of Operations The tables below illustrate the GFA (or expected GFA) attributable to the Group of the investment property and hotel portfolio at 30th June 2023. Completed Investment Properties and Hotels (GFA attributable to the Group in million square feet) Residential/ Serviced Under (1) Apartments Planning Total Office Retail Hotels Hong Kong 9.5 2.6 0.8 0.6 – 13.5 Chinese Mainland 2.9 6.2 1.3 0.2 – 10.6 U.S.A. – 0.3 0.3 – – 0.6 Total 12.4 9.1 2.4 0.8 – 24.7 Investment Properties and Hotels Under Development or Held for Future Development (expected GFA attributable to the Group in million square feet) Residential/ Serviced Under (1) Apartments Planning Total Office Retail Hotels Hong Kong 0.2 – – – – 0.2 Chinese Mainland – 1.2 – – 3.0 4.2 U.S.A. – – – – 1.5(2) 1.5 Total 0.2 1.2 – – 4.5 5.9 Total Investment Properties and Hotels (GFA (or expected GFA) attributable to the Group in million square feet) Residential/ Serviced Under (1) Office Retail Hotels Apartments Planning Total Total 12.6 10.3 2.4 0.8 4.5 30.6 (1) Hotels are accounted for in the financial statements under property, plant and equipment and, where applicable, the leasehold land portion is accounted for under right-of-use assets. (2) This property is accounted for under properties held for development in the financial statements. The trading portfolio comprises completed units available for sale at EIGHT STAR STREET in Hong Kong and The River in Vietnam. There are six residential projects under development, three in Hong Kong, one in Indonesia, one in Vietnam and one in Thailand. There is a plan to develop a residential project on some available land banks in Miami, U.S.A. The table below illustrates the GFA (or expected GFA) attributable to the Group of the trading property portfolio at 30th June 2023. Trading Properties (GFA (or expected GFA) attributable to the Group in million square feet) Under Development Completed or Held for Development (1) Development Total Hong Kong 0.0 0.8 0.8 U.S.A. and elsewhere 0.0 3.1 3.1 Total 0.0 3.9 3.9 (1) Completed development in Hong Kong comprises EIGHT STAR STREET and completed development in U.S.A. and elsewhere comprises The River in Vietnam. 22 Swire Properties Limited Interim Report 2023

The charts below show the analysis of the Group’s completed investment properties GFA (excluding hotels), gross rental income and net assets employed by region on an attributable basis. Completed Investment Properties GFA (excl. Hotels) Hong Kong Chinese Mainland U.S.A. 30th June 2023 31st December 2022 Attributable Gross Rental Income Hong Kong Chinese Mainland U.S.A. Six months ended Year ended 30th June 2023 31st December 2022 Net Assets Employed Hong Kong Chinese Mainland U.S.A. and elsewhere 30th June 2023 31st December 2022 23

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Review of Operations Investment Properties – Hong Kong Offices Overview The completed office portfolio in Hong Kong comprises an aggregate of 10.0 million square feet of space on a 100% basis. Total attributable gross rental income from our office properties in Hong Kong was HK$2,933 million in the first half of 2023. At 30th June 2023, our office properties, completed and under development, in Hong Kong were valued at HK$186,547 million. Of this amount, the Group’s attributable interest was HK$176,959 million. Hong Kong Office Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 30th June 2023) Interest Pacific Place 2,186,433 97% 100% Taikoo Place – One Island East and One Taikoo Place 2,550,379 97% 100% Taikoo Place – Two Taikoo Place 994,545 56% 100% (1) Taikoo Place – Other Office Towers 3,136,717 93% 50%/100% (2) Others 1,158,595 85% 26.67%/50%/100% Total 10,026,669 (1) Including PCCW Tower, of which the Group owns 50%. (2) Others comprise One Citygate (26.67% owned), Berkshire House (50% owned), SPACES.8QRE (wholly-owned), Five Pacific Place (wholly-owned and formerly known as 28 Hennessy Road) and South Island Place (50% owned). Gross rental income from the Hong Kong office portfolio in the first half of 2023 was HK$2,778 million, a decrease of 2% from the same period in 2022. Demand remains subdued reflecting continued economic uncertainty. The office market was weak given increased availability (due to vacancy and new supply). However, our office portfolio was resilient. Leasing activity has picked up since the reopening of the border, with increased inspections. We believe that tenants value our amenity provision as well as our commitment to sustainability and to the wellbeing of occupants. At 30th June 2023, the office portfolio was 90% let. Excluding Two Taikoo Place (which was completed in September 2022), the office portfolio was 94% let. The chart below shows the mix of tenants of the office properties by the principal nature of their businesses (based on internal classifications) as a percentage of the office area at 30th June 2023. Office Area by Tenants’ Businesses (At 30th June 2023) Professional services (Accounting/ Real estate/Construction/ Banking/Finance/ Legal/Management consulting/ Property development/ Securities/ Corporate secretarial) Architecture Investment Trading Insurance Advertising and public relations Technology/Media/ Others Telecoms 24 Swire Properties Limited Interim Report 2023

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At 30th June 2023, the top ten office tenants (based on attributable gross rental income in the six months ended 30th June 2023) together occupied approximately 21% of the Group’s total attributable office area in Hong Kong. Hong Kong Office Market Outlook The office market in Hong Kong is expected to remain weak in the second half of 2023, on the back of increased availability. Increasing competition from Central and Kowloon East will continue to exert downward pressure on rents across the portfolio. The ‘flight-to-quality’ trend is expected to benefit the Group, as prospective tenants upgrade their premises and place a higher value on sustainability as well as the health and wellness of their workforce. Assuming improvements in the financial markets and an increase in economic activity, the demand for Grade-A office space, particularly from financial institutions and professional services companies, should recover. The following chart shows the percentage of attributable gross rental income from the office properties in Hong Kong, for the month ended 30th June 2023, derived from leases expiring in the periods with no committed renewals or new lettings. Tenancies accounting for approximately 3.8% of the attributable gross rental income in the month of June 2023 are due to expire in the second half of 2023, with tenancies accounting for a further 18.5% of such rental income due to expire in 2024. Office Lease Expiry Profile (At 30th June 2023) 25

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Review of Operations Retail Overview The completed retail portfolio in Hong Kong comprises an aggregate of 3.2 million square feet of space on a 100% basis. Total attributable gross rental income from our retail properties in Hong Kong was HK$1,324 million in the first half of 2023. At 30th June 2023, our retail properties in Hong Kong were valued at HK$54,832 million. Of this amount, the Group’s attributable interest was HK$45,903 million. The portfolio principally consists of The Mall at Pacific Place, Cityplaza at Taikoo Shing and Citygate Outlets at Tung Chung. The Mall at Pacific Place and Cityplaza are wholly-owned by the Group. The malls are managed by the Group. Following the lifting of all travel restrictions and COVID-19 related measures, and with the investment in marketing and loyalty initiatives, the Hong Kong retail portfolio has recovered significantly in the past few months. Sales have returned to pre-pandemic levels in some of our malls. There are still factors such as a strong US currency, a rebound in outbound travel and a high interest rate environment which might affect local consumptions. However, we remain confident that the sales momentum will continue and expect further improvement in Hong Kong retail businesses in the second half of 2023. During the first half, retail sales increased by 60%, 12% and 62% respectively at The Mall at Pacific Place, Cityplaza and Citygate Outlets. Hong Kong Retail Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 30th June 2023) Interest The Mall, Pacific Place 711,182 97% 100% Cityplaza 1,096,898 100% 100% Citygate Outlets 803,582 100% 26.67% (1) Others 549,558 99% 26.67%/60%/100% Total 3,161,220 (1) Others largely comprise Taikoo Shing neighbourhood shops and StarCrest retail premises (which are wholly-owned), Island Place retail premises (60% owned) and Tung Chung Crescent neighbourhood shops (26.67% owned). Gross rental income from the retail portfolio in Hong Kong was HK$1,230 million in the first half of 2023, an increase of 17% compared to the same period in 2022. The increase reflected the recovery after the lifting of all COVID-19 related measures and significant reduction in the rental concessions given to tenants. The malls were almost fully let throughout the period. 26 Swire Properties Limited Interim Report 2023

The chart below shows the mix of the tenants of the retail properties by the principal nature of their businesses (based on internal classifications) as a percentage of the retail area at 30th June 2023. Retail Area by Tenants’ Businesses (At 30th June 2023) Fashion and accessories Department stores Jewellery and watches Food and beverages Supermarkets Ice rink Cinemas Others At 30th June 2023, the top ten retail tenants (based on attributable gross rental income in the six months ended 30th June 2023) together occupied approximately 26% of the Group’s total attributable retail area in Hong Kong. Hong Kong Retail Market Outlook It is expected that footfall and tenants’ sales in Hong Kong will continue to improve despite uncertainty over economic environment and volatile stock market. With our strong marketing campaigns and loyalty programme initiatives, we expect that the sales momentum will carry on. The following chart shows the percentage of attributable gross rental income from the retail properties in Hong Kong, for the month ended 30th June 2023, derived from leases expiring in the periods with no committed renewals or new lettings. Tenancies accounting for approximately 11.3% of the attributable gross rental income in the month of June 2023 are due to expire in the second half of 2023, with tenancies accounting for a further 31.3% of such rental income due to expire in 2024. Retail Lease Expiry Profile (At 30th June 2023) 27

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Review of Operations Residential 983-987A King’s Road and 16-94 Pan Hoi Street The completed residential portfolio comprises Pacific In 2018, a joint venture company in which the Group Place Apartments at Pacific Place, EAST Residences in holds a 50% interest submitted a compulsory sale Quarry Bay, STAR STUDIOS in Wan Chai and a number of application in respect of this site in Quarry Bay. In August luxury houses on Hong Kong Island and Lantau Island, 2023, the Lands Tribunal granted the compulsory sale with an aggregate GFA of 0.6 million square feet. order for the site. Subject to the joint venture company The residential portfolio was approximately 77% let as at having successfully bid in the compulsory sale and in 30th June 2023. Demand for our residential investment accordance with applicable town planning controls, it is properties is primarily local and has been boosted by the expected that the site can be redeveloped for residential tenants from the Chinese Mainland and staying in Hong and retail uses with a GFA of approximately 440,000 Kong for business after the reopening of the border. square feet. Investment Properties Under Development 9-39 Hoi Wan Street and 33-41 Tong Chong Street Six Pacific Place In June 2022, the Group submitted a compulsory sale Planning permission to develop this site in Wan Chai for application in respect of this site in Quarry Bay. The gross office use was obtained in 2018. The site area is site area is approximately 20,060 square feet. Proceeding approximately 14,400 square feet. The development has with the development (the planning of which is being an aggregate GFA of approximately 223,000 square feet. reviewed) is subject to the Group having successfully bid Superstructure has been topped out. Interior fit out works in the compulsory sale. are in progress. Completion of development is expected Taikoo Shing Car Parking Spaces by the end of 2023. Since November 2020, the Group has offered 2,530 car Others parking spaces in the Taikoo Shing residential development in Hong Kong for sale. 2,114 of these car Wah Ha Factory Building, 8 Shipyard Lane and parking spaces had been sold at 4th August 2023. Sales of Zung Fu Industrial Building, 1067 King’s Road 1,460 car parking spaces had been recognised at 30th In 2018, the Group submitted compulsory sale June 2023, 8 of them in the first half of 2023. Sales of 654 applications in respect of these two sites in Quarry Bay. car parking spaces are expected to be recognised in the In March 2022, the Group acquired the remaining second half of 2023. interests in Zung Fu Industrial Building and obtained full ownership of the site. In July 2023, the Group acquired the remaining interests in Wah Ha Factory Building and obtained full ownership of the site. The two sites are intended to be redeveloped for office and other commercial uses with an aggregate GFA of approximately 779,000 square feet. 28 Swire Properties Limited Interim Report 2023

Investment Properties – Chinese Mainland Overview The property portfolio in the Chinese Mainland comprises an aggregate of 22.8 million square feet of space, 14.8 million square feet of which is attributable to the Group. Completed properties amount to approximately 14.1 million square feet, with 8.7 million square feet under development. Total attributable gross rental income from investment properties in the Chinese Mainland was HK$3,054 million in the first half of 2023. At 30th June 2023, the investment properties in the Chinese Mainland were valued at HK$106,027 million. Of this amount, the Group’s attributable interest was HK$76,780 million. Chinese Mainland Property Portfolio (1) GFA (sq. ft.) (100% Basis) Investment Under Attributable Total Properties Hotels Planning Interest Completed Taikoo Li Sanlitun, Beijing 1,789,000 1,619,537 169,463 – 100% (2) Sino-Ocean Taikoo Li Chengdu 1,654,565 1,461,428 193,137 – 100% Taikoo Hui, Guangzhou 3,782,327 3,272,893 509,434 – 97% INDIGO, Beijing 1,894,141 1,535,840 358,301 – 50% HKRI Taikoo Hui, Shanghai 3,731,964 3,155,381 576,583 – 50% Taikoo Li Qiantan, Shanghai 1,188,727 1,188,727 – – 50% Hui Fang, Guangzhou 90,847 90,847 – – 100% Others 2,917 2,917 – – 100% Sub-Total 14,134,488 12,327,570 1,806,918 – Under Development (3) INDIGO Phase Two, Beijing 4,045,514 – – 4,045,514 35% Taikoo Li Xi’an (4) 2,364,668 – – 2,364,668 70% Sanya (5) 2,233,401 2,233,401 – – 50% Sub-Total 8,643,583 2,233,401 – 6,410,182 Total 22,778,071 14,560,971 1,806,918 6,410,182 (1) Including hotels and properties leased for investment. (2) In February 2023, the Group acquired the remaining 35% interest in Sino-Ocean Taikoo Li Chengdu (to be renamed as Taikoo Li Chengdu with effect from 23rd August 2023). The Group’s interest increased from 65% to 100% after the transaction. (3) This is an office-led mixed-use development. The development scheme is being planned. The development is planned to be completed in two phases, in 2025 and 2026. (4) This is a retail-led mixed-use development. The development scheme is being planned. The development is planned to be completed in phases from late 2025. (5) This is a retail-led development. The development is planned to be completed in phases from 2025. Gross rental income from the Group’s investment property portfolio in the Chinese Mainland was HK$2,238 million in the first half of 2023, 26% higher than in the same period in 2022, reflecting the recovery of retail sales from the COVID-19 outbreak and share of incremental rental income arising from the acquisitions of additional interests in Sino-Ocean Taikoo Li Chengdu in late February 2023. 29

Review of Operations Retail The completed retail portfolio in the Chinese Mainland comprises an aggregate of 7.8 million square feet of space, 6.2 million square feet of which is attributable to the Group. Total attributable gross rental income from our retail properties in the Chinese Mainland grew by 13%, to HK$2,584 million, in the first half of 2023. Disregarding rental concessions and changes in the value of the Renminbi, total attributable gross rental income increased by 19%. At 30th June 2023, our completed retail properties in the Chinese Mainland were valued at HK$65,899 million. Of this amount, the Group’s attributable interest was HK$55,468 million. The portfolio consists of Taikoo Li Sanlitun in Beijing and Hui Fang in Guangzhou, which are wholly-owned by the Group, Taikoo Hui in Guangzhou, which is 97% owned, and INDIGO in Beijing, HKRI Taikoo Hui and Taikoo Li Qiantan in Shanghai, each of which is 50% owned, and Sino-Ocean Taikoo Li Chengdu, which has been wholly-owned by the Group after the completion of the acquisition of the remaining 35% interest in February 2023 and will be renamed as Taikoo Li Chengdu with effect from 23rd August 2023. Chinese Mainland Completed Retail Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 30th June 2023) Interest Taikoo Li Sanlitun, Beijing 1,619,537 97% 100% (1) Sino-Ocean Taikoo Li Chengdu 1,354,624 96% 100% Taikoo Hui, Guangzhou 1,529,392 100% 97% INDIGO, Beijing 946,769 100% 50% HKRI Taikoo Hui, Shanghai 1,107,220 96% 50% Taikoo Li Qiantan, Shanghai 1,188,727 95% 50% Hui Fang, Guangzhou 90,847 100% 100% Total 7,837,116 (1) In February 2023, the Group acquired the remaining 35% interest in Sino-Ocean Taikoo Li Chengdu (to be renamed as Taikoo Li Chengdu with effect from 23rd August 2023). The Group’s interest increased from 65% to 100% after the transaction. In the Chinese Mainland, foot traffic improved significantly and retail sales strongly exceeded pre-pandemic levels for many of our malls, following the lifting of COVID-19 related restrictions. Our retail sales (excluding sales by vehicle retailers) on an attributable basis in the Chinese Mainland in the first half of 2023 increased by 41%. Retail sales at Taikoo Li Sanlitun in Beijing, Sino-Ocean Taikoo Li Chengdu, Taikoo Hui in Guangzhou, INDIGO in Beijing, HKRI Taikoo Hui and Taikoo Li Qiantan in Shanghai increased by 29%, 27%, 16%, 34%, 72% and 169% respectively in the first half of 2023. National retail sales increased by 8% in the first half of 2023 compared to the same period in 2022. The Group’s gross rental income from retail properties in the Chinese Mainland increased by 30%, to HK$2,042 million, in the first half of 2023. Disregarding rental concessions and changes in the value of the Renminbi, gross rental income increased by 37%. 30 Swire Properties Limited Interim Report 2023

The chart below shows the mix of the tenants of the retail properties by the principal nature of their businesses (based on internal classifications) as a percentage of the retail area at 30th June 2023. Retail Area by Tenants’ Businesses (At 30th June 2023) Fashion and accessories Cinemas Jewellery and watches Food and beverages Supermarkets Others 24.2% At 30th June 2023, the top ten retail tenants (based on Retail sales and gross rental income at Taikoo Hui in attributable gross rental income in the six months ended Guangzhou increased by 16% and 4% respectively in the 30th June 2023) together occupied approximately 21% first half of 2023 as compared with the first half of 2022, of the Group’s total attributable retail area in the Chinese reflecting the recovery from the COVID-19 outbreak. Mainland. There were improvements to the tenant mix. The mall was 100% let at 30th June 2023. Retail sales at Taikoo Li Sanlitun in Beijing increased by 29% following the lifting of COVID-19 related restrictions Retail sales at INDIGO in Beijing increased by 34% and the reopening of the Workers’ Stadium. Foot traffic in the first half of 2023. The mall was 100% let at recovered to 2021 levels. To enhance the leading luxury 30th June 2023. positioning in the Beijing market, structural works to facilitate the tenant mix improvement at Taikoo Li Retail sales at HKRI Taikoo Hui in Shanghai increased by Sanlitun North are in progress. As a result, gross rental 72% in the first half of 2023 benefitting from income decreased by 5% in the first half of 2023. improvements to the tenant mix and increased footfall. Disregarding changes in the value of the Renminbi, gross Gross rental income decreased by 11% as a result of rental income increased by 1%. The development was certain part of the mall undergoing renovation. The mall 97% let at 30th June 2023. was 96% let at 30th June 2023. Disregarding the impact arising from the incremental Retail sales and footfall grew steadily at Taikoo Li Qiantan shareholding at Sino-Ocean Taikoo Li Chengdu, retail in Shanghai in the first half of 2023. At 30th June 2023, sales and gross rental income increased by 27% and 5%, tenants had committed to take 95% of the retail space respectively, in the first half of 2023. The development and 87% of the lettable retail space was open. was 96% let at 30th June 2023. 31

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Review of Operations Chinese Mainland Retail Market Outlook The overall demand for retail space is expected to be stable and to recover steadily in the second half of 2023. In Guangzhou and Chengdu, demand for retail space from retailers of luxury brands is expected to be strong. In Shanghai, demand for retail space from retailers of luxury fashion, cosmetics and lifestyle brands, and from operators of food and beverage outlets, is expected to be stable. In Beijing, retail sales and demand for retail space are expected to recover steadily. The following chart shows the percentage of attributable gross rental income from the retail properties in the Chinese Mainland, for the month ended 30th June 2023, derived from leases expiring in the periods with no committed renewals or new lettings. Tenancies accounting for approximately 16.7% of the attributable gross rental income in the month of June 2023 are due to expire in the second half of 2023, with tenancies accounting for a further 27.6% of such rental income due to expire in 2024. Retail Lease Expiry Profile (At 30th June 2023) Offices The completed office portfolio in the Chinese Mainland comprises an aggregate of 4.2 million square feet of space, 2.9 million square feet of which is attributable to the Group. Total attributable gross rental income from our office properties in the Chinese Mainland decreased by 5% to HK$427 million in the first half of 2023. Disregarding changes in the value of the Renminbi, total attributable gross rental income increased by 1%. At 30th June 2023, our completed office properties in the Chinese Mainland were valued at HK$20,242 million. Of this amount, the Group’s attributable interest was HK$12,620 million. The portfolio comprises Taikoo Hui in Guangzhou, which is 97% owned, and INDIGO in Beijing and HKRI Taikoo Hui in Shanghai, each of which is 50% owned. 32 Swire Properties Limited Interim Report 2023

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Chinese Mainland Completed Office Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 30th June 2023) Interest Taikoo Hui, Guangzhou 1,693,125 90% 97% INDIGO, Beijing 589,071 92% 50% HKRI Taikoo Hui, Shanghai 1,900,838 98% 50% Total 4,183,034 The Group’s gross rental income from office properties in the Chinese Mainland decreased by 6% to HK$179 million in the first half of 2023. Disregarding changes in the value of the Renminbi, gross rental income increased by 1%. In the first half of 2023, office demand in Shanghai recovered and rent in core areas remained stable. In Beijing, demand for office space was weak and supply was limited in core areas. In Guangzhou, demand for office space was weak with new supply in decentralised areas exerting downward pressure on rents. The chart below shows the mix of the tenants of the office properties by the principal nature of their businesses (based on internal classifications) as a percentage of the office area at 30th June 2023. Office Area by Tenants’ Businesses (At 30th June 2023) Banking/Finance/ Professional services Real estate/Construction/ Securities/ Property development/ Investment Architecture Trading Pharmaceutical Others manufacturing Technology/Media/ Telecoms At 30th June 2023, the top ten office tenants (based on attributable gross rental income in the six months ended 30th June 2023) together occupied approximately 44% of the Group’s total attributable office area in the Chinese Mainland. The office towers of Taikoo Hui in Guangzhou, ONE INDIGO in Beijing and the office towers of HKRI Taikoo Hui in Shanghai were 90%, 92% and 98% let, respectively, at 30th June 2023. 33

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3.4%

Review of Operations Chinese Mainland Office Market Outlook Office demand and market sentiment in Beijing, Shanghai and Guangzhou are expected to recover in the second half of 2023. However, economic outlook remains uncertain. The continued new supply of office space in Shanghai and Guangzhou, particularly in emerging decentralised submarkets, will exert downward pressure on rents. The following chart shows the percentage of attributable gross rental income from the office properties in the Chinese Mainland, for the month ended 30th June 2023, derived from leases expiring in the periods with no committed renewals or new lettings. Tenancies accounting for approximately 5.6% of the attributable gross rental income in the month of June 2023 are due to expire in the second half of 2023, with tenancies accounting for a further 19.2% of such rental income due to expire in 2024. Office Lease Expiry Profile (At 30th June 2023) Serviced Apartments Chinese Mainland Serviced Apartments There are 24 serviced apartments at the Mandarin Market Outlook Oriental in Taikoo Hui Guangzhou, 42 serviced The performance of the serviced apartments is expected apartments at The Temple House in Sino-Ocean to further improve steadily in the second half of 2023. Taikoo Li Chengdu and 102 serviced apartments at The Middle House Residences in HKRI Taikoo Hui Investment Properties Under Development Shanghai. INDIGO Phase Two, Beijing The performance of the serviced apartments in the INDIGO Phase Two is an extension of the existing INDIGO first half of 2023 recovered gradually following the development, with a GFA of approximately four million lifting of COVID-19 associated restrictions. Occupancy square feet. Jointly developed with the Sino-Ocean at the Mandarin Oriental in Guangzhou, The Temple group, INDIGO Phase Two will be an office-led mixed-use House in Chengdu and The Middle House Residences development and is planned to be completed in two in Shanghai was 71%, 41% and 83% respectively at phases, in 2025 and 2026. Basement and superstructure 30th June 2023. works are in progress. The Group has a 35% interest in INDIGO Phase Two. 34 Swire Properties Limited Interim Report 2023

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Taikoo Li Xi’an Sanya Taikoo Li Xi’an is located at the Small Wild Goose Pagoda Jointly developed with China Tourism Group Duty Free historical and cultural zone in the Beilin district of Xi’an Corporation Limited, the land in Haitang district of and is expected to be developed as a retail-led mixed-use Sanya with GFA of approximately 2.2 million square development comprising retail and cultural facilities, a feet is expected to be developed into a premium, hotel and serviced residences. The estimated GFA is resort-style, retail-led development including approximately 2.4 million square feet (above ground), underground parking and other ancillary facilities. The subject to further planning. The project is expected to be development will be Phase III of the Sanya International completed in phases from late 2025. The development is Duty-Free Complex. Excavation works are in progress. being done in collaboration with Xi’an Cheng Huan The project is expected to open in phases from 2025. Cultural Investment and Development Co., Ltd. The Group The Group has a 50% interest in this development. has a 70% interest in Taikoo Li Xi’an. The chart below illustrates the expected attributable area of the completed property portfolio in the Chinese Mainland. Attributable Area of Completed Property Portfolio in the Chinese Mainland Taikoo Li Sanlitun, INDIGO Phase Two, Beijing Beijing (2) Sino-Ocean Taikoo Li Taikoo Li Xi’an (1) Chengdu (3) Taikoo Hui, Guangzhou Sanya INDIGO, Beijing Hui Fang, Guangzhou HKRI Taikoo Hui, Others Shanghai Taikoo Li Qiantan, Shanghai (1) In February 2023, the Group acquired the remaining 35% interest in Sino-Ocean Taikoo Li Chengdu (to be renamed as Taikoo Li Chengdu with effect from 23rd August 2023). The Group’s interest increased from 65% to 100% after the transaction. (2) The development is expected to open in phases from late 2025. (3) The development is expected to open in phases from 2025. Others ZHANGYUAN, Shanghai In 2021, the Group formed a joint venture management company with Shanghai Jing’an Real Estate (Group) Co., Ltd. This company, in which the Group has a 60% interest, is engaged in the revitalisation and management of the ZHANGYUAN shikumen compound in the Jing’an district of Shanghai. When the revitalisation is completed, the compound will have a GFA (including car parking spaces) of 591,189 square feet above ground and 738,066 square feet underground. There are over 40 shikumen blocks, with about 170 two or three-storey houses. There are connections to three metro lines and to HKRI Taikoo Hui. The first phase (the West zone) was completed and opened in November 2022. Construction and renovation at the second phase (the East zone) are in progress. The second phase is planned to be completed and opened in 2026. The Group does not have an ownership interest in the compound. 35

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Review of Operations Investment Properties – U.S.A. The Group owns 62.93% of the shopping centre at the Brickell City Centre development. The remaining interest Overview in the shopping centre is owned by Simon Property Brickell City Centre, Miami Group (25%) and Bal Harbour Shops (12.07%). Bal Brickell City Centre is an urban mixed-use development in Harbour Shops has an option, which has been exercisable the Brickell financial district of Miami, U.S.A. It has a site since February 2020, to sell its interest to the Group. area of 504,017 square feet (approximately 11.6 acres). The shopping centre was 90% leased (including by way The first phase of the Brickell City Centre development of letters of intent) at 30th June 2023. Retail sales in the comprises a shopping centre, two office towers (Two and first half of 2023 increased by 7% compared to the same Three Brickell City Centre, which were sold in 2020), period in 2022. a hotel with serviced apartments (EAST Miami, which was The second phase of the Brickell City Centre sold in 2021) managed by Swire Hotels and two development, to be known as One Brickell City Centre, is residential towers (Reach and Rise) developed for sale. being planned. It will be a commercial development and All the residential units at Reach and Rise have been sold. will be connected to the first phase of Brickell City Centre. Brickell City Centre, Miami (1) GFA (sq. ft.) Attributable (100% Basis) Interest Completed Shopping centre 496,508 62.9% Future Development One Brickell City Centre 1,510,000 100% Total 2,006,508 (1) Represents leasable/saleable area except for the car parking spaces, roof top and circulation areas. Miami Market Outlook In Miami, retail sales are expected to increase due to an improved tenant mix. Valuation of Investment Properties The portfolio of investment properties was valued at 30th June 2023 on the basis of market value (96% by value having been valued by Cushman & Wakefield Limited and 2% by value having been valued by another independent valuer). The amount of this valuation was HK$284,404 million, compared to HK$271,191 million at 31st December 2022. The increase in the valuation of the investment property portfolio primarily reflected the acquisition of subsidiary companies in the Chinese Mainland, partly offset by a decrease in the valuation of the office investment properties in Hong Kong and foreign exchange translation losses in respect of the investment properties in the Chinese Mainland. Under HKAS 40, hotel properties are not accounted for as investment properties. The hotel buildings are included within property, plant and equipment. The leasehold land is included within right-of-use assets. Both are recorded at cost less accumulated depreciation or amortisation and any provision for impairment. 36 Swire Properties Limited Interim Report 2023

Property Trading Overview The trading portfolio comprises completed units available for sale at EIGHT STAR STREET in Hong Kong and The River in Vietnam. There are six residential projects under development, three in Hong Kong, one in Indonesia, one in Vietnam and one in Thailand. There is a plan to develop a residential project on some available land banks in Miami, U.S.A. Property Trading Portfolio (At 30th June 2023) Actual/Expected GFA (sq. ft.) Construction Attributable (100% Basis) Completion Date Interest Completed Hong Kong –EIGHT STAR STREET, Wan Chai 4,004 (1) 2022 100% Vietnam (1) – The River, Ho Chi Minh City 22,959 2022 20% Under Development Hong Kong – LA MONTAGNE, Wong Chuk Hang (formerly known as Wong Chuk Hang Station Package Four Property Development) 638,305 2024 25% (2) – Chai Wan Inland Lot No. 178 692,276 2025 80% (3) –269 Queen’s Road East, Wan Chai 102,990 2025 100% Indonesia – Savyavasa, South Jakarta 1,122,728 2024 50% Vietnam – Empire City, Ho Chi Minh City 5,357,318 2028 15.73% Thailand (4) – Wireless Road, Bangkok 1,352,012 to be determined 40% Held for Development or sale U.S.A. – South Brickell Key, Miami, Florida 550,000 under planning 100% (5) –Brickell City Centre, Miami, Florida – North Squared site 523,000 n.a. 100% (1) Remaining saleable area. (2) Excluding a retail shop of approximately 2,002 sq. ft. (3) Excluding a retail podium of approximately 13,197 sq. ft. (4) Expected GFA. (5) Represents saleable area. 37

Review of Operations Hong Kong approximately 694,000 square feet. Superstructure EIGHT STAR STREET, Wan Chai works are in progress at the Phase 1 site, while foundation works are underway at the Phase 2 site. EIGHT STAR STREET at 8 Star Street, Wan Chai is a The development is expected to be completed residential building (with retail outlets on the lowest in 2025. two levels) of approximately 34,000 square feet. The occupation permit was obtained in May 2022. 33 out of 269 Queen’s Road East, Wan Chai 37 units had been sold at 4th August 2023. Sales of In June 2022, the Group acquired (via a government 30 units had been recognised at 30th June 2023, 3 of land tender) a plot of land at 269 Queen’s Road East them in the first half of 2023. Sales of 3 units are in Wan Chai. The plot of land will be developed expected to be recognised in the second half of 2023. primarily for residential use with an aggregate GFA of 30 units had been handed over to the purchasers at approximately 116,000 square feet. Demolition works 30th June 2023. have commenced since May 2023 and are in LA MONTAGNE, Wong Chuk Hang progress. The development is under design stage and (formerly known as Wong Chuk Hang Station expected to be completed in 2025. Package Four Property Development) Indonesia A joint venture formed by the Group, Kerry Properties In 2019, a joint venture between the Group and Limited and Sino Land Company Limited is undertaking Jakarta Setiabudi Internasional Group completed the a residential development in Wong Chuk Hang in Hong acquisition of a plot of land in South Jakarta, Kong. The development will comprise two residential Indonesia. The land is being developed for residential towers (Phases 4A and 4B) with an aggregate GFA of purposes with an aggregate GFA of approximately approximately 638,000 square feet and about 800 1,123,000 square feet. Superstructure works are in residential units. Superstructure works are in progress. progress. The development is expected to comprise Pre-sales of Phase 4A started in July 2023. 48 out of around 400 residential units to be completed in 2024. 432 units had been pre-sold at 4th August 2023. The The Group has a 50% interest in the joint venture. development is expected to be completed and handed Pre-sales are in progress. 62 units had been pre-sold over to the purchasers in 2024 and 2025 respectively. at 4th August 2023. The Group has a 25% interest in the joint venture. Chai Wan Inland Lot No. 178 Vietnam In 2021, a project company held as to 80% by the In 2020, the Group agreed with City Garden Joint Group and as to 20% by China Motor Bus Company, Stock Company to develop The River, a luxury Limited completed a land exchange with the HKSAR residential property in Ho Chi Minh City, Vietnam. Government in respect of a plot of land in Chai Wan. The development, which was completed in August The plot of land is being redeveloped into a residential 2022 comprises 525 luxury apartments in three complex (with retail outlet) with an aggregate GFA of towers. The Group has an effective 20% interest in the 38 Swire Properties Limited Interim Report 2023

development. Approximately 94% of the units had Outlook been sold at 4th August 2023. Handover of the The reopening of the border with the Chinese Mainland completed units to purchasers is in progress. and various HKSAR Government policies, including a In 2021, the Group made a minority investment in revamped investment immigration scheme and tax Empire City, a residential-led mixed-use development incentives, have been beneficial to the market. However, (with residential, retail, office, hotel and serviced we expect buyers to remain cautious in the short term, apartment components) in Ho Chi Minh City, Vietnam. in light of an increase in interest rates and economic The development is under construction and is uncertainties. Market sentiment is however expected to expected to be completed in phases up to 2028. remain resilient in the medium to long term, due to solid The Group invested in the development through an demand and a gradual economic recovery. agreement with Gaw Capital Partners, an existing With urbanisation, a growing middle class and a limited participant in the development. Over 53% of the supply of luxury residential properties, the residential residential units had been pre-sold or sold at markets in Jakarta, Indonesia, Ho Chi Minh City, Vietnam 4th August 2023. and Bangkok, Thailand are expected to be stable. Despite the recent increase in interest rates in the U.S.A., Thailand the outlook for the luxury residential market in Miami In February 2023, the Group acquired a 40% interest remains positive. Florida is an attractive destination for in a site located on Wireless Road in Lumphini homebuyers due to its favourable climate and tax regime. sub-district in Pathum Wan district, Bangkok. In partnership with City Realty Co. Ltd., the site is expected to be developed for residential purposes Estate Management with a site area of approximately 136,000 square feet. The Group manages around 18 residential estates which U.S.A. it has developed at 30th June 2023. It also manages In June 2023, the Group announced plans to develop a OPUS HONG KONG, a residential property in Hong Kong luxury residential project on Brickell Key in Miami. which the Group redeveloped for Swire Pacific Limited. The project, called One Island Drive, will consist of two The management services include day to day assistance towers. The first tower will comprise luxury private for occupants, management, maintenance, cleaning, residences. The second tower will comprise a new security and renovation of common areas and facilities. Mandarin Oriental hotel as well as private residences The Group places great emphasis on maintaining good and hotel residences. Sales are expected to launch in relationships with occupants. early 2024. 39

Review of Operations Hotels Overview The Group owns and manages (through Swire Hotels) hotels in Hong Kong, the Chinese Mainland and the U.S.A. The House Collective, comprising The Upper House in Hong Kong, The Opposite House in Beijing, The Temple House in Chengdu and The Middle House in Shanghai, is a group of small and distinctive luxury hotels. There are plans to further expand The House Collective to Tokyo and Shenzhen. There are EAST hotels in Hong Kong, Beijing and Miami. EAST Miami ceased to be owned by the Group since October 2021 but is managed by the Group under a third-party hotel management agreement. The Group also has interests in non-managed hotels in Hong Kong, Guangzhou, Shanghai and Miami. Businesses in the managed hotels in Hong Kong and the Chinese Mainland recovered strongly following the lifting of COVID-19 measures and the reopening of the border. The hotels in the U.S.A. performed well. The managed hotels (including restaurants and hotel management office) recorded an operating profit before depreciation of HK$59 million in the first half of 2023, compared with an operating loss before depreciation of HK$74 million in the first half of 2022. Hotel Portfolio (managed by Swire Hotels) No. of Rooms Attributable (100% Basis) Interest Completed Hong Kong – The Upper House 117 100% – EAST Hong Kong 331 100% (1) – Headland Hotel 501 0% Chinese Mainland – The Opposite House 99 100% – EAST Beijing 365 50% (2) – The Temple House 142 100% (3) – The Middle House 213 50% U.S.A. (4) – EAST Miami 352 0% Total 2,120 (1) Headland Hotel is owned by Airline Property Limited, a wholly-owned subsidiary of Cathay Pacific Airways Limited. (2) Comprising one hotel tower and one serviced apartment tower. In February 2023, the Group acquired the remaining 35% interest in Sino- Ocean Taikoo Li Chengdu. The Group’s interest in The Temple House increased to 100% after the transaction. (3) Comprising one hotel tower and one serviced apartment tower. (4) EAST Miami (including serviced apartments in the hotel tower) is owned by a third party. 40 Swire Properties Limited Interim Report 2023

Hong Kong the Mandarin Oriental at Taikoo Hui in Guangzhou, which The Group wholly-owns and manages (through Swire has 263 rooms and 24 serviced apartments. The Group Hotels) two hotels in Hong Kong, The Upper House, owns 50% of another non-managed hotel, The Sukhothai, a 117-room luxury hotel at Pacific Place, and EAST at HKRI Taikoo Hui in Shanghai, which has 201 rooms. Hong Kong, a 331-room hotel in Taikoo Shing. The performance of the managed and non-managed The Group has a 20% interest in each of the JW Marriott, hotels in the Chinese Mainland improved strongly after Conrad Hong Kong and Island Shangri-La hotels at the border reopening and resumption of international Pacific Place and a 26.67% interest in each of the flights with higher revenue per available room and Novotel Citygate and The Silveri Hong Kong – MGallery occupancy in the first half of 2023. in Tung Chung. U.S.A. Businesses in the managed hotels in Hong Kong EAST Miami at the Brickell City Centre development in recovered following the lifting of COVID-19 related Miami was sold to a third party in October 2021. measures, the reopening of the border and with growth It continues to be managed by Swire Hotels. of international visitors. Revenue per available room and occupancy rebounded strongly in the first half of 2023. EAST Miami and Mandarin Oriental, Miami performed well, with stable revenue per available room and Chinese Mainland occupancy. Swire Hotels manages four hotels in the Chinese Mainland, The Opposite House, a 99-room luxury hotel at Outlook Taikoo Li Sanlitun, EAST Beijing, a 365-room hotel at The outlook for the hotel businesses in Hong Kong is INDIGO in Beijing, The Temple House, a luxury property positive and the businesses are expected to further with 100 hotel rooms and 42 serviced apartments at recover with more international visitors. Hotel businesses Sino-Ocean Taikoo Li Chengdu, and The Middle House, a in the Chinese Mainland are expected to grow luxury property consisting of 111 hotel rooms and 102 throughout the year. The U.S.A. hotels are expected to serviced apartments at HKRI Taikoo Hui, Shanghai. continue to perform well. The Group owns 100% of The Opposite House, 100% of The Temple House (after the completion of the We are expanding our hotel management business, with acquisition of the remaining 35% interest in February a focus on extending our hotel brands outside Hong Kong 2023), 50% of EAST Beijing and 50% of The Middle through hotel management agreements. House. The Group owns 97% of, but does not manage, 41

Review of Operations Development Highlight Sino-Ocean Taikoo Li Chengdu, a premium open-plan, low-rise, and lane-driven shopping Sino-Ocean Taikoo Li Chengdu precinct that spans approximately 1.65 million sq ft, celebrates the 8th anniversary this year since its official opening in April 2015. The development is in the Jinjiang district of Chengdu and is part of the Chunxi Road and Daci Temple shopping district. Paying homage to traditional Sichuan architecture in an innovative and modern approach, the complex features six traditional courtyards and buildings that have been preserved and revitalised, along with the historic Daci Temple established in the 3rd century which adds to the cultural essence of the project. With over 300 global retail outlets, eateries, and cultural brands, the complex also includes The Temple House, a boutique hotel with 100 guest rooms and 42 serviced apartments. The unique 42 Swire Properties Limited Interim Report 2023

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aesthetic at Sino-Ocean Taikoo Li Chengdu offers a memorable backdrop for a vibrant shopping and leisure experience. Swire Properties has completed the acquisition of the remaining interest in Sino-Ocean Taikoo Li Chengdu in February and increased its interest to 100%. The development will be officially renamed as Taikoo Li Chengdu with effect from 23rd August 2023. 43

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Review of Operations Capital Commitments Capital Expenditure and Commitments Capital expenditure in the first half of 2023 on Hong Kong investment properties and hotels, including the Group’s share of the capital expenditure of joint venture companies, amounted to HK$1,298 million (first half of 2022: HK$1,287 million). Outstanding capital commitments at 30th June 2023 were HK$9,613 million (31st December 2022: HK$11,878 million), including the Group’s share of the capital commitments of joint venture companies of HK$50 million (31st December 2022: HK$67 million). Capital expenditure in the first half of 2023 on Chinese Mainland investment properties and hotels, including the Group’s share of the capital expenditure of joint venture companies, was HK$353 million (first half of 2022: HK$3,547 million). Outstanding capital commitments at 30th June 2023 were HK$15,235 million (31st December 2022: HK$16,076 million), including the Group’s share of the capital commitments of joint venture companies of HK$6,798 million (31st December 2022: HK$7,370 million). The Group was committed to funding HK$982 million (31st December 2022: HK$331 million) of the capital commitments of joint venture companies in the Chinese Mainland. In addition to this, the Group was committed to make a capital injection into a joint venture company of HK$405 million (31st December 2022: HK$421 million). Capital expenditure in the first half of 2023 on investment properties and hotels in the U.S.A. amounted to HK$16 million (first half of 2022: HK$18 million). Outstanding capital commitments at 30th June 2023 were HK$27 million (31st December 2022: Nil). Profile of Capital Commitments for Investment Properties and Hotels Commitments relating to Total Joint Venture (1) Companies (2) Expenditure Forecast Expenditure Commitments Six months Six months ended ending 30th June 31st December 2026 At 30th June At 30th June 2023 2023 2024 2025 and later 2023 2023 HK$M HK$M HK$M HK$M HK$M HK$M HK$M Hong Kong 1,298 1,733 971 1,387 5,522 9,613 50 Chinese Mainland 353 1,592 4,215 3,765 5,663 15,235 6,798 U.S.A. 16 24 3 – – 27 – Total 1,667 3,349 5,189 5,152 11,185 24,875 6,848 (1) The capital commitments represent the Group’s capital commitments of HK$18,027 million plus the Group’s share of the capital commitments of joint venture companies of HK$6,848 million. (2) The Group was committed to funding HK$982 million of the capital commitments of joint venture companies in the Chinese Mainland. 44 Swire Properties Limited Interim Report 2023

Financing Summary of Cash Flows Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Net cash from/(used in) businesses and investments Cash generated from operations 4,221 3,933 6,332 Dividends received 34 94 176 Tax paid (370) (547) (1,127) Net interest paid (511) (301) (625) Net cash used in investing activities (6,761) (5,118) (7,999) (3,387) (1,939) (3,243) Cash paid to shareholders and net repayment of external debt Net increase/(decrease) in borrowings 7,309 (3,876) (1,772) Capital contribution from a non-controlling interest – 986 1,003 Principal elements of lease payments (38) (33) (66) Dividends paid (4,024) (3,779) (5,712) 3,247 (6,702) (6,547) Decrease in cash and cash equivalents (140) (8,641) (9,790) During the first half of 2023, net cash used in investing activities principally comprised capital expenditure on investment properties, investments in joint venture companies and acquisition of subsidiary companies. Medium Term Note Programme In 2012, Swire Properties MTN Financing Limited, a wholly-owned subsidiary of the Company, established a US$3 billion Medium Term Note (“MTN”) Programme. The aggregate nominal amount of the MTN Programme was increased to US$4 billion in 2017. Notes issued under the MTN Programme are unconditionally and irrevocably guaranteed by the Company. At 30th June 2023, the MTN Programme was rated A by Fitch and (P)A2 by Moody’s, in each case in respect of notes with a maturity of more than one year. The MTN Programme enables the Group to raise money directly from the capital markets. Under the MTN Programme, notes may be issued in US dollars or in other currencies, in various amounts and for various tenors. 45

Financing Changes in Financing Financial Information Reviewed by Auditors Analysis of Changes in Financing Six months ended Year ended 30th June 2023 31st December 2022 Loans and Lease Loans and Lease bonds liabilities bonds liabilities HK$M HK$M HK$M HK$M At 1st January 22,835 614 24,601 566 Loans drawn and refinanced 5,088 – 7,237 – Bonds issued 3,251 – – – Bonds matured (200) – (3,899) – Repayment of loans (830) – (5,110) – Acquisition of subsidiaries 3,151 42 – – New leases arranged during the period – 54 – 160 Principal elements of lease payments – (38) – (66) Currency adjustment (235) (20) 2 (46) Other non-cash movements 48 1 4 – At 30th June/31st December 33,108 653 22,835 614 Net Debt Financial Information Reviewed by Auditors Net debt at 30th June 2023 was HK$29,514 million, compared with HK$18,947 million at 31st December 2022. The increase in net debt principally reflected capital and development expenditure and investment in joint venture companies and acquisitions of subsidiary companies. 46 Swire Properties Limited Interim Report 2023

The Group’s borrowings are principally denominated in Hong Kong dollars, Renminbi and US dollars. Outstanding borrowings at 30th June 2023 and 31st December 2022 were as follows: 30th June 31st December 2023 2022 HK$M HK$M Borrowings included in non-current liabilities Bank borrowings 15,122 7,311 Bonds 17,686 14,824 Borrowings included in current liabilities Bank borrowings – 500 Bonds 300 200 Total borrowings 33,108 22,835 Lease liabilities Included in non-current liabilities 576 535 Included in current liabilities 77 79 Less: short-term deposits and bank balances 4,247 4,502 Net debt 29,514 18,947 Sources of Finance Financial Information Reviewed by Auditors At 30th June 2023, committed loan facilities and debt securities amounted to HK$41,525 million, of which HK$8,250 million (20%) remained undrawn. In addition, the Group had undrawn uncommitted facilities totalling HK$400 million. Sources of funds at 30th June 2023 comprised: Undrawn Undrawn Expiring Within Expiring After Available Drawn One Year One Year HK$M HK$M HK$M HK$M Facilities from third parties Term loans 8,251 7,751 – 500 Revolving loans 15,242 7,492 – 7,750 Bonds 18,032 18,032 – – Total committed facilities 41,525 33,275 – 8,250 Uncommitted facilities Bank loans and overdrafts 400 – 400 – Total 41,925 33,275 400 8,250 Note: The figures above are stated before unamortised loan fees of HK$167 million. 47

Financing Maturity Profile and Refinancing The maturity profile of the Group’s available committed facilities is set out below: Total Available Committed Facilities by Maturity Facilities from third parties Term and revolving loans Bonds Financial Information Reviewed by Auditors The table below sets forth the maturity profile of the Group’s borrowings: 30th June 2023 31st December 2022 HK$M HK$M Bank borrowings from and bonds issued to third parties due Within 1 year 300 1% 700 3% 1-2 years 3,208 10% 1,875 8% 2-5 years 27,163 82% 15,195 67% After 5 years 2,437 7% 5,065 22% Total 33,108 100% 22,835 100% Less: Amount due within one year included under current liabilities 300 700 Amount due after one year included under non-current liabilities 32,808 22,135 48 Swire Properties Limited Interim Report 2023

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Currency Profile Financial Information Reviewed by Auditors An analysis of the carrying amounts of gross borrowings by currency (after cross-currency swaps) is shown below: 30th June 2023 31st December 2022 HK$M HK$M Currency Hong Kong dollars 24,216 73% 19,740 86% United States dollars 3,505 11% 3,095 14% Renminbi 5,387 16% – – Total 33,108 100% 22,835 100% Finance Charges Financial Information Reviewed by Auditors At 30th June 2023, 60% of the Group’s gross borrowings were on a fixed rate basis and 40% were on a floating rate basis (31st December 2022: 66% and 34% respectively). Interest charged and earned was as follows: Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Interest charged on: Bank loans and overdrafts 277 27 158 Bonds 272 319 559 Interest-bearing advances from joint venture companies 2 7 16 Lease liabilities 11 9 19 Net fair value (gains)/losses on derivative instruments Cash flow hedges – transferred from other comprehensive income (14) (4) (13) Cross-currency swaps not qualifying as hedges 1 1 1 Other financing costs 57 56 109 606 415 849 Losses on 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 5 27 66 Capitalised on: Investment properties (219) (191) (370) Properties for sale (121) (83) (186) 271 168 359 Interest income on: Short-term deposits and bank balances (29) (66) (105) Loans to joint venture and associated companies (54) (16) (51) Others (9) (7) (16) (92) (89) (172) Net finance charges 179 79 187 49

Financing Gearing Ratio and Interest Cover 30th June 31st December 2023 2022 2022 Restated (1) Gearing ratio 10.2% 5.3% 6.5% Six months ended Year ended 30th June 31st December 2023 2022 2022 Restated (1) Interest cover – times Per financial statements 16.1 61.9 48.3 Underlying 24.8 85.1 74.7 Cash interest cover – times (1) Per financial statements 5.5 13.9 12.1 Underlying 8.4 13.6 13.4 (1) Refer to Glossary on page 83 for definitions. Debt in Joint Venture and Associated Companies In accordance with Hong Kong Financial Reporting Standards, the net debt of the Group reported in the consolidated statement of financial position does not include the net debt of its joint venture and associated companies. These companies had the following net debt positions at 30th June 2023 and 31st December 2022: Net Debt of Joint Venture and Portion of Net Debt Debt Guaranteed by Associated Companies Attributable to the Group the Group 30th June 31st December 30th June 31st December 30th June 31st December 2023 2022 2023 2022 2023 2022 HK$M HK$M HK$M HK$M HK$M HK$M Hong Kong Entities 10,330 10,402 3,451 3,472 2,408 2,408 Chinese Mainland Entities 11,675 15,171 5,290 7,532 1,298 1,203 U.S.A. and other Entities 15 542 16 461 142 570 Total 22,020 26,115 8,757 11,465 3,848 4,181 If the attributable portion of the net debt in joint venture and associated companies were to be added to the Group’s net debt, gearing would rise to 13.3%. 50 Swire Properties Limited Interim Report 2023

Report on Review of Condensed Interim Financial Statements To the Board of Directors of Swire Properties Limited (incorporated in Hong Kong with limited liability) Introduction We have reviewed the condensed interim financial statements set out on pages 52 to 79, which comprise the consolidated statement of financial position of Swire Properties Limited (the “Company”) and its subsidiaries (together, the “Group”) as at 30th June 2023 and the consolidated statement of profit or loss, consolidated statement of other comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the six-month period then ended, and notes, comprising material accounting policy information and other explanatory information. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on condensed interim financial statements to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants. The Directors of the Company are responsible for the preparation and presentation of these condensed interim financial statements in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Scope of Review We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified Public Accountants. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed interim financial statements of the Group are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting”. PricewaterhouseCoopers Certified Public Accountants Hong Kong, 10th August 2023 PricewaterhouseCoopers, 22/F Prince’s Building, Central, Hong Kong T: +852 2289 8888, F: +852 2810 9888, www.pwchk.com 51

Condensed Interim Financial Statements Consolidated Statement of Profit or Loss For the six months ended 30th June 2023 – unaudited Unaudited Audited Six months ended Year ended 30th June 31st December 2023 2022 2022 Note HK$M HK$M HK$M Restated Revenue 4 7,297 6,910 13,826 Cost of sales 5 (1,970) (1,871) (4,303) Gross profit 5,327 5,039 9,523 Administrative and selling expenses (951) (828) (1,713) Other operating expenses (106) (107) (186) Other net (losses)/gains 6 (65) 89 79 Gains on disposal of subsidiary companies – – 520 Change in fair value of investment properties 13 (1,332) 701 801 Operating profit 2,873 4,894 9,024 Finance charges (271) (168) (359) Finance income 92 89 172 Net finance charges 8 (179) (79) (187) Share of profit less losses of joint venture companies 508 516 1,443 Share of profit less losses of associated companies 16 (36) 12 Profit before taxation 3,218 5,295 10,292 Taxation 9 (954) (826) (2,065) Profit for the period 2,264 4,469 8,227 Profit for the period attributable to: The Company’s shareholders 2,223 4,348 7,980 Non-controlling interests 41 121 247 2,264 4,469 8,227 HK$ HK$ HK$ Earnings per share from profit attributable to the Company’s shareholders (basic and diluted) 11 0.38 0.74 1.36 The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes. 52 Swire Properties Limited Interim Report 2023

Consolidated Statement of Other Comprehensive Income For the six months ended 30th June 2023 – unaudited Unaudited Audited Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Restated Profit for the period 2,264 4,469 8,227 Other comprehensive income Items that will not be reclassified to profit or loss Defined benefit plans – remeasurement gains recognised during the period – – 245 – deferred tax – – (40) Net translation differences on foreign operations recognised during the period (51) (37) (110) (51) (37) 95 Items that may be reclassified subsequently to profit or loss Cash flow hedges – gains/(losses) recognised during the period 20 58 (16) – transferred to net finance charges (14) (4) (13) – transferred to operating profit – (1) (1) – deferred tax (1) (9) 5 Share of other comprehensive income of joint venture and associated companies – recognised during the period (485) (924) (1,744) – reclassified to profit or loss on deemed disposal 228 – – Net translation differences on foreign operations recognised during the period (1,796) (1,653) (3,213) (2,048) (2,533) (4,982) Other comprehensive income for the period, net of tax (2,099) (2,570) (4,887) Total comprehensive income for the period 165 1,899 3,340 Total comprehensive income attributable to: The Company’s shareholders 175 1,815 3,203 Non-controlling interests (10) 84 137 165 1,899 3,340 The above consolidated statement of other comprehensive income should be read in conjunction with the accompanying notes. 53

Condensed Interim Financial Statements Consolidated Statement of Financial Position At 30th June 2023 – unaudited Unaudited Audited 30th June 31st December 2023 2022 Note HK$M HK$M ASSETS AND LIABILITIES Non-current assets Property, plant and equipment 12 3,672 3,165 Investment properties 13 284,607 271,368 Intangible assets 14 1,620 208 Right-of-use assets 15 2,686 2,482 Properties held for development 1,214 1,208 Joint venture companies 16 19,253 24,589 Loans due from joint venture companies 16 14,327 15,273 Associated companies 17 489 473 Loans due from associated companies 17 46 52 Derivative financial instruments 19 142 96 Deferred tax assets 23 64 64 Financial assets at fair value through profit or loss 616 460 Retirement benefit assets 10 14 328,746 319,452 Current assets Properties for sale 8,547 8,264 Stocks 80 72 Trade and other receivables 20 3,053 2,834 Cash and cash equivalents 4,247 4,502 15,927 15,672 Assets classified as held for sale 24 1,612 2,038 17,539 17,710 Current liabilities Trade and other payables 21 9,932 10,008 Contract liabilities 6 14 Taxation payable 455 185 Long-term loans and bonds due within one year 300 700 Lease liabilities due within one year 22 77 79 10,770 10,986 Net current assets 6,769 6,724 Total assets less current liabilities 335,515 326,176 Non-current liabilities Long-term loans and bonds 32,808 22,135 Long-term lease liabilities 22 576 535 Deferred tax liabilities 23 13,732 11,248 47,116 33,918 NET ASSETS 288,399 292,258 EQUITY Share capital 25 10,449 10,449 Reserves 26 274,959 278,762 Equity attributable to the Company’s shareholders 285,408 289,211 Non-controlling interests 27 2,991 3,047 TOTAL EQUITY 288,399 292,258 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 54 Swire Properties Limited Interim Report 2023

Consolidated Statement of Cash Flows For the six months ended 30th June 2023 – unaudited Unaudited Audited Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Operating activities Cash generated from operations 4,221 3,933 6,332 Interest paid (547) (368) (742) Interest received 36 67 117 Tax paid (370) (547) (1,127) 3,340 3,085 4,580 Dividends received from joint venture and associated companies and financial assets at fair value through other comprehensive income 34 94 176 Net cash from operating activities 3,374 3,179 4,756 Investing activities Purchase of property, plant and equipment (111) (73) (133) Additions of investment properties (1,332) (5,027) (7,096) Purchase of intangible assets (16) (11) (58) Proceeds from disposal of investment properties 60 412 609 Proceeds from disposal of subsidiary companies, net of cash disposed of – 4 1,060 Payment for acquisition of subsidiary companies, net of cash acquired (3,388) – – Purchase of shares in joint venture companies (762) (650) (1,720) Purchase of financial assets at fair value through profit or loss (156) (20) (20) Equity to joint venture companies (221) (144) (1,123) Loans to joint venture companies (956) (129) (108) Repayment of loans by joint venture companies 173 577 917 Repayment of advances from joint venture companies – (25) (200) Loans to associated companies – (29) (52) Repayment of loans by associated companies 6 – – Initial leasing costs incurred (58) (3) (75) Net cash used in investing activities (6,761) (5,118) (7,999) Net cash outflow before financing activities (3,387) (1,939) (3,243) Financing activities Loans drawn and refinanced 8,339 3,254 7,237 Repayment of loans and bonds (1,030) (7,130) (9,009) Principal elements of lease payments (38) (33) (66) 7,271 (3,909) (1,838) Capital contribution from a non-controlling interest – 986 1,003 Dividends paid to the Company’s shareholders (3,978) (3,744) (5,616) Dividends paid to non-controlling interests (46) (35) (96) Net cash from/(used in) financing activities 3,247 (6,702) (6,547) Decrease in cash and cash equivalents (140) (8,641) (9,790) Cash and cash equivalents at 1st January 4,502 14,833 14,833 Effect of exchange differences (115) (279) (541) Cash and cash equivalents at end of the period 4,247 5,913 4,502 Represented by: Bank balances and short-term deposits maturing within three months 4,247 5,913 4,502 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 55

Condensed Interim Financial Statements Consolidated Statement of Changes in Equity For the six months ended 30th June 2023 – unaudited Attributable to the Company’s shareholders Non- Share Revenue Other controlling Total capital reserve reserves Total interests equity HK$M HK$M HK$M HK$M HK$M HK$M At 1st January 2023 10,449 280,008 (1,246) 289,211 3,047 292,258 Profit for the period – 2,223 – 2,223 41 2,264 Other comprehensive income – – (2,048) (2,048) (51) (2,099) Total comprehensive income for the period – 2,223 (2,048) 175 (10) 165 Dividends paid – (3,978) – (3,978) (46) (4,024) At 30th June 2023 (unaudited) 10,449 278,253 (3,294) 285,408 2,991 288,399 Attributable to the Company’s shareholders Non- Share Revenue Other controlling Total capital reserve reserves Total interests equity HK$M HK$M HK$M HK$M HK$M HK$M At 1st January 2022 – as originally stated 10,449 277,961 3,745 292,155 2,003 294,158 – impact of change in accounting policy (note 2(e)) – (522) (9) (531) (17) (548) – as restated 10,449 277,439 3,736 291,624 1,986 293,610 Profit for the period (restated) – 4,348 – 4,348 121 4,469 Other comprehensive income (restated) – – (2,533) (2,533) (37) (2,570) Total comprehensive income for the period (restated) – 4,348 (2,533) 1,815 84 1,899 Capital contribution from a non-controlling interest – – – – 986 986 Dividends paid – (3,744) – (3,744) (35) (3,779) At 30th June 2022 (unaudited) (restated) 10,449 278,043 1,203 289,695 3,021 292,716 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 56 Swire Properties Limited Interim Report 2023

Notes to the Condensed Interim Financial Statements 1. Segment Information The Group is organised on a divisional basis: Property investment, Property trading and Hotels. The reportable segments within each of the three divisions are classified according to the nature of the business. (a) Analysis of consolidated statement of profit or loss Operating profit/ Share of Profit/ (losses) profit less Share of (Losses) after losses of profit less Profit/ Profit/ attributable Inter- depreciation Net joint losses of (Losses) (Losses) to the External segment and finance venture associated before for the Company’s revenue revenue amortisation charges companies companies taxation period shareholders HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M Six months ended 30th June 2023 Property investment 6,732 1 4,254 (176) 506 – 4,584 3,911 3,855 Property trading 89 – (12) 4 (20) – (28) (53) (52) Hotels 476 1 (37) (7) 12 16 (16) (10) (10) Change in fair value of investment properties – – (1,332) – 10 – (1,322) (1,584) (1,570) Inter-segment elimination – (2) – – – – – – – 7,297 – 2,873 (179) 508 16 3,218 2,264 2,223 Six months ended 30th June 2022 (Restated) Property investment 6,265 1 4,112 (79) 604 – 4,637 4,004 3,957 Property trading 383 – 218 – (9) 13 222 151 151 Hotels 262 1 (137) – (13) (49) (199) (179) (178) Change in fair value of investment properties – – 701 – (66) – 635 493 418 Inter-segment elimination – (2) – – – – – – – 6,910 – 4,894 (79) 516 (36) 5,295 4,469 4,348 Year ended 31st December 2022 Property investment 12,340 3 8,273 (188) 1,018 – 9,103 8,129 8,025 Property trading 921 – 209 1 (18) 66 258 171 171 Hotels 565 4 (259) – (67) (54) (380) (342) (341) Change in fair value of investment properties – – 801 – 510 – 1,311 269 125 Inter-segment elimination – (7) – – – – – – – 13,826 – 9,024 (187) 1,443 12 10,292 8,227 7,980 Note: Sales between business segments are accounted for at competitive prices charged to unaffiliated customers for similar goods and services. 57

Notes to the Condensed Interim Financial Statements 1. Segment Information (continued) (b) Analysis of total assets of the Group Joint Bank Segment venture Associated deposits Total assets companies* companies* and cash assets HK$M HK$M HK$M HK$M HK$M At 30th June 2023 Property investment 293,136 28,540 – 4,051 325,727 Property trading 10,188 3,439 285 109 14,021 Hotels 4,599 1,601 250 87 6,537 307,923 33,580 535 4,247 346,285 At 31st December 2022 Property investment 278,255 35,439 – 4,252 317,946 Property trading 9,911 2,762 285 164 13,122 Hotels 4,107 1,661 240 86 6,094 292,273 39,862 525 4,502 337,162 * The assets relating to joint venture and associated companies include the loans due from these companies. (c) Analysis of total liabilities and non-controlling interests of the Group Current and Non- Segment deferred tax External Lease Total controlling liabilities liabilities borrowings liabilities liabilities interests HK$M HK$M HK$M HK$M HK$M HK$M At 30th June 2023 Property investment 8,398 14,162 24,271 653 47,484 2,959 Property trading 1,343 24 8,357 – 9,724 1 Hotels 197 1 480 – 678 31 9,938 14,187 33,108 653 57,886 2,991 At 31st December 2022 Property investment 8,529 11,413 14,685 614 35,241 3,017 Property trading 1,326 20 7,782 – 9,128 2 Hotels 167 – 368 – 535 28 10,022 11,433 22,835 614 44,904 3,047 (d) Analysis of external revenue of the Group – Timing of revenue recognition Rental At a point income in time Over time on leases Total HK$M HK$M HK$M HK$M Six months ended 30th June 2023 Property investment – 55 6,677 6,732 Property trading 89 – – 89 Hotels 221 255 – 476 310 310 6,677 7,297 Six months ended 30th June 2022 (Restated) Property investment – 50 6,215 6,265 Property trading 383 – – 383 Hotels 153 109 – 262 536 159 6,215 6,910 There are no significant differences from the last annual financial statements in the basis of segmentation or in the basis of measurement of segment profit or loss. 58 Swire Properties Limited Interim Report 2023

2. Basis of Preparation (a) The unaudited condensed interim financial statements have been prepared in accordance with Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”). The unaudited condensed interim financial statements are set out on pages 52 to 79 and also include the “Financial Information Reviewed by Auditors” in the Financing section on pages 45 to 50. The financial information relating to the year ended 31st December 2022 that is included in this document as comparative information does not constitute the Company’s statutory annual consolidated financial statements for that year but is derived from those financial statements. The non-statutory accounts (within the meaning of section 436 of the Companies Ordinance (Cap. 622) (the “Ordinance”)) in this document are not specified financial statements (within such meaning). The specified financial statements for the year ended 31st December 2022 have been delivered to the Registrar of Companies in Hong Kong in accordance with section 664 of the Ordinance. The Company’s auditor has reported on those specified financial statements. That report was not qualified or otherwise modified, did not refer to any matter to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 406(2) or 407(2) or (3) of the Ordinance. The accounting policies and methods of computation and presentation used in the preparation of the condensed interim financial statements are consistent with those described in the 2022 annual financial statements except for those noted in 2(b) to 2(d) below. (b) The following revised standards were adopted by the Group effective from 1st January 2023: Amendments to HKAS 1, HKAS 8 and HKAS 12 Narrow-scope Amendments Amendments to HKAS 1 and HKFRS Practice Statement 2 Disclosure of Accounting Policies HKFRS 17 and Amendments to HKFRS 17 Insurance Contracts HK(IFRIC)-Interpretation 22 Foreign Currency Transactions and Advance Consideration None of the new and revised standards and interpretation had a significant effect on the Group’s consolidated financial statements or accounting policies. 59

Notes to the Condensed Interim Financial Statements 2. Basis of Preparation (continued) (c) The Group has applied the following accounting policies during the period ended 30th June 2023 as follows: Goodwill Goodwill represents the excess of the consideration transferred over the fair value of the Group’s share of the assets transferred, the liabilities incurred to the former owners of the acquired asset and the equity interests issued by the Group. Goodwill is treated as an asset of the entity acquired and, where attributable to a foreign entity, is translated at the period-end closing rate. Goodwill is stated at cost less accumulated impairment. Goodwill is allocated to cash-generating units (“CGUs”) for the purpose of impairment testing, which is performed annually, or more often if an impairment indicator exists. Impairment charges recognised in respect of goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Net investment hedges Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of a hedge is recognised in equity; the gain or loss relating to the ineffective portion is recognised immediately in the consolidated statement of profit or loss. Gains and losses accumulated in equity are transferred to the consolidated statement of profit or loss when the foreign operation is disposed of. (d) The preparation of the condensed interim financial statements in conformity with HKFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgements in the process of applying the Group’s accounting policies. Those areas involving a higher degree of judgements or complexity and areas where assumptions and estimates are significant to the Group’s consolidated financial statements are detailed in the 2022 annual financial statements. (e) The Group has changed its accounting policy with respect to the IASB agenda decision on “Lessor Forgiveness of Lease Payments (IFRS 9 and IFRS 16)” in October 2022. Details of the change were disclosed in the Group’s 2022 annual financial statements. 60 Swire Properties Limited Interim Report 2023

2. Basis of Preparation (continued) The change in accounting policy has been applied retrospectively by restating the results for the period ended 30th June 2022: As previously Effect on As reported change restated HK$M HK$M HK$M Consolidated Statement of Profit or Loss and Other Comprehensive Income for the period ended 30th June 2022 Revenue 6,698 212 6,910 Cost of sales (1,693) (178) (1,871) Share of profit less losses of joint venture companies 509 7 516 Taxation (817) (9) (826) Profit for the period attributable to: – The Company’s shareholders 4,319 29 4,348 – Non-controlling interests 118 3 121 Net translation differences on foreign operations recognised during the period (1,649) (4) (1,653) Total comprehensive income attributable to: – The Company’s shareholders 1,790 25 1,815 – Non-controlling interests 81 3 84 3. Financial Risk Management In the normal course of business the Group is exposed to financial risks attributable to interest rates, currencies, credit and liquidity. The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s 2022 annual financial statements. There have been no changes in the Group’s financial risk management structure, policies and procedures since the year end. 61

Notes to the Condensed Interim Financial Statements 4. Revenue Revenue represents sales by the Company and its subsidiary companies to external customers and comprises: Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Restated Gross rental income from investment properties 6,677 6,215 12,226 Property trading 89 383 921 Hotels 476 262 565 Rendering of other services 55 50 114 7,297 6,910 13,826 5. Cost of Sales Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Restated Direct rental outgoings in respect of investment properties 1,483 1,382 2,997 Property trading 63 155 621 Hotels 424 334 685 1,970 1,871 4,303 62 Swire Properties Limited Interim Report 2023

6. Other Net (Losses)/Gains Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Gains arising from the acquisition of interests in joint venture companies 551 – – Gains on disposal of investment properties – 27 31 Gains on disposal of assets classified as held for sale – 4 20 Change in fair value of assets classified as held for sale (411) 49 48 Net foreign exchange losses (232) (30) (107) Government subsidies 1 13 31 Others 26 26 56 (65) 89 79 7. Expenses by Nature Expenses included in cost of sales, administrative and selling expenses, and other operating expenses are analysed as follows: Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Restated Impairment charged on trade receivables* 9 183 341 Depreciation of property, plant and equipment (note 12) 130 116 232 Depreciation of right-of-use assets – leasehold land held for own use 14 13 25 – property 22 18 39 Amortisation of – intangible assets (note 14) 32 25 53 – initial leasing costs in respect of investment properties 69 16 79 Staff costs 1,041 1,059 1,899 Other lease expenses** 16 16 32 * These impairments include expected credit loss on the operating lease receivables in relation to the forgiveness of lease payments, i.e. rent concessions granted to tenants during the period, under HKFRS 9 of HK$13 million (30th June 2022 (Restated): HK$178 million; year ended 31st December 2022: HK$319 million). ** These expenses include expenses relating to short-term leases and leases of low-value assets, net of rent concessions received (nil for the six months ended 30th June 2023, 30th June 2022 and year ended 31st December 2022). They are directly charged to the consolidated statement of profit or loss and are not included in the measurement of lease liabilities under HKFRS 16. 63

Notes to the Condensed Interim Financial Statements 8. Net Finance Charges Refer to the table with the heading “Financial Information Reviewed by Auditors” on page 49 for details of the Group’s net finance charges. 9. Taxation Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M Restated Current taxation Hong Kong profits tax 280 294 401 Overseas tax 330 328 590 Under/(Over)-provisions in prior years 7 (3) (5) 617 619 986 Deferred taxation (note 23) Change in fair value of investment properties 88 (33) 472 Origination and reversal of temporary differences 249 243 598 Effect of change in tax rate in the U.S.A. – (3) 9 337 207 1,079 954 826 2,065 Hong Kong profits tax is calculated at 16.5% (2022: 16.5%) on the estimated assessable profits for the period. Overseas tax is calculated at tax rates applicable in jurisdictions in which the Group is assessable for tax. The Group’s share of joint venture companies’ tax charges for the six months ended 30th June 2023 of HK$144 million (30th June 2022 (Restated): HK$169 million; year ended 31st December 2022: HK$526 million) and share of associated companies’ tax charges for the six months ended 30th June 2023 of nil (30th June 2022: HK$5 million; year ended 31st December 2022: HK$40 million), which are included in the share of profit less losses of joint venture and associated companies shown in the consolidated statement of profit or loss. 64 Swire Properties Limited Interim Report 2023

10. Dividends Six months ended Year ended 30th June 31st December 2023 2022 2022 HK$M HK$M HK$M First interim dividend declared on 10th August 2023 of HK$0.33 per share (2022 first interim dividend paid on 6th October 2022: HK$0.32) 1,931 1,872 1,872 Second interim dividend paid on 4th May 2023 of HK$0.68 per share – – 3,978 1,931 1,872 5,850 The first interim dividend is not accounted for in the condensed interim financial statements because it had not been declared at the period end date. The Directors have declared a first interim dividend of HK$0.33 (2022: HK$0.32) per share for the year ending 31st December 2023. The first interim dividend, which totals HK$1,931 million (2022: HK$1,872 million), will be paid on Thursday, 12th October 2023 to shareholders registered at the close of business on the record date, being Friday, 8th September 2023. Shares of the Company will be traded ex-dividend as from Wednesday, 6th September 2023. The register of members will be closed on Friday, 8th September 2023, during which day no transfer of shares will be effected. In order to qualify for entitlement to the first interim dividend, all transfer forms accompanied by the relevant share certificates must be lodged with the Company’s share registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong, for registration not later than 4:30 p.m. on Thursday, 7th September 2023. 65

Notes to the Condensed Interim Financial Statements 11. Earnings Per Share (Basic and Diluted) Earnings per share is calculated by dividing the profit attributable to the Company’s shareholders for the period ended 30th June 2023 of HK$2,223 million (30th June 2022 (Restated): HK$4,348 million; year ended 31st December 2022: HK$7,980 million) by the weighted average number of 5,850,000,000 ordinary shares in issue during the period (30th June 2022 and 31st December 2022: 5,850,000,000 ordinary shares). 12. Property, Plant and Equipment Property, plant and equipment HK$M Cost: At 1st January 2023 6,177 Translation differences (127) Acquisition of subsidiary companies (note 31) 632 Additions 85 Disposals (5) At 30th June 2023 6,762 Accumulated depreciation and impairment: At 1st January 2023 3,012 Translation differences (47) Charge for the period (note 7) 130 Disposals (5) At 30th June 2023 3,090 Net book value: At 30th June 2023 3,672 At 1st January 2023 3,165 Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 66 Swire Properties Limited Interim Report 2023

13. Investment Properties Under Completed Development Total HK$M HK$M HK$M At 1st January 2023 248,114 23,077 271,191 Translation differences (2,166) (122) (2,288) Acquisition of subsidiary companies (note 31) 15,230 – 15,230 Additions 399 1,336 1,735 Cost written back (46) – (46) Net transfers to right-of-use assets – (86) (86) Net fair value losses (1,069) (263) (1,332) 260,462 23,942 284,404 Add: Initial leasing costs* 203 – 203 At 30th June 2023 260,665 23,942 284,607 At 1st January 2023 (including initial leasing costs) 248,291 23,077 271,368 * The amounts include initial leasing costs acquired at the acquisition of subsidiary companies during the six months ended 30th June 2023 of HK$61 million. 14. Intangible Assets Computer Goodwill Software Others Total HK$M HK$M HK$M HK$M Cost: At 1st January 2023 – 321 205 526 Translation differences – – 1 1 Acquisition of subsidiary companies (note 31) 1,419 8 – 1,427 Additions – 16 – 16 At 30th June 2023 1,419 345 206 1,970 Accumulated amortisation: At 1st January 2023 – 195 123 318 Amortisation for the period (note 7) – 21 11 32 At 30th June 2023 – 216 134 350 Net book value: At 30th June 2023 1,419 129 72 1,620 At 1st January 2023 – 126 82 208 67

Notes to the Condensed Interim Financial Statements 15. Right-of-use Assets The Group (acting as lessee) leases land, offices, warehouses and equipment. Except for certain long-term leasehold land in Hong Kong, rental contracts are typically made for fixed periods of 1 to 50 years but may have extension and early termination options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The recognised right-of-use assets relate to the following types of assets: 30th June 31st December 2023 2022 HK$M HK$M Leasehold land held for own use 2,512 2,340 Property 174 142 2,686 2,482 Additions to right-of-use assets during the six months ended 30th June 2023 were HK$56 million (30th June 2022: HK$9 million; year ended 31st December 2022: HK$107 million). Right-of-use assets acquired at the acquisition of subsidiary companies during the six months ended 30th June 2023 were HK$105 million (30th June 2022: Nil; year ended 31st December 2022: Nil). During the six months ended 30th June 2023, total cash outflow for leases was included in the consolidated statement of cash flows as (a) interest paid of HK$11 million (30th June 2022: HK$9 million; year ended 31st December 2022: HK$19 million) under “operating activities”, (b) payment for short-term and low-value assets leases of HK$16 million (30th June 2022: HK$16 million; year ended 31st December 2022: HK$32 million) under “operating activities” and (c) principal elements of lease payments of HK$38 million (30th June 2022: HK$33 million; year ended 31st December 2022: HK$66 million) under “financing activities”. 68 Swire Properties Limited Interim Report 2023

16. Joint Venture Companies 30th June 31st December 2023 2022 HK$M HK$M Share of net assets, unlisted 19,253 24,286 Goodwill – 303 19,253 24,589 Loans due from joint venture companies less provisions – Interest-free 11,399 13,360 – Interest-bearing 2,928 1,913 14,327 15,273 On 22nd February 2023, the Group completed the second and third Master Agreements to acquire 35% equity interests in existing joint venture companies in Sino-Ocean Taikoo Li Chengdu in the Chinese Mainland from Sino-Ocean Group Holding Limited and its subsidiaries. The joint venture companies became wholly-owned subsidiaries of the Group at the date of completion. Details of the purchase consideration, the net identifiable assets acquired and goodwill are disclosed in note 31. 17. Associated Companies 30th June 31st December 2023 2022 HK$M HK$M Share of net assets, unlisted 489 473 Loans due from associated companies less provisions – Interest-free 6 12 – Interest-bearing 40 40 46 52 69

Notes to the Condensed Interim Financial Statements 18. Fair Value Measurement of Financial Instruments (a) Financial instruments that are measured at fair value are included in the following fair value hierarchy: Total carrying Level 2 Level 3 amount HK$M HK$M HK$M Assets as per consolidated statement of financial position At 30th June 2023 Derivatives used for hedging (note 19) 142 – 142 Financial assets at fair value through profit or loss – Unlisted equity investments – 616 616 142 616 758 At 31st December 2022 Derivatives used for hedging (note 19) 96 – 96 Financial assets at fair value through profit or loss – Unlisted equity investments – 460 460 96 460 556 Liabilities as per consolidated statement of financial position At 30th June 2023 Put option in respect of a non-controlling interest (note 21) – 583 583 At 31st December 2022 Put option in respect of a non-controlling interest (note 21) – 590 590 Notes: The levels in the hierarchy represent the following: Level 2 – Financial instruments measured at fair value using inputs other than quoted prices but where those inputs are based on observable market data. Level 3 – Financial instruments measured at fair value using inputs not based on observable market data. There were no transfers of financial instruments between the levels in the fair value hierarchy. The change in level 3 financial instruments for the period ended 30th June 2023 is as follows: Financial assets at Put option in respect fair value through of a non-controlling profit or loss interest HK$M HK$M At 1st January 2023 460 590 Translation differences – 3 Additions 156 – Distributions during the period – (15) Change in fair value recognised as net finance charges* – 5 At 30th June 2023 616 583 * Including unrealised losses recognised on balances held at 30th June 2023 – 5 70 Swire Properties Limited Interim Report 2023

18. Fair Value Measurement of Financial Instruments (continued) There has been no change in valuation techniques for Level 2 and Level 3 fair value hierarchy classifications. The fair value of derivatives used for hedging in Level 2 has been based on quotes from market makers or alternative market participants supported by observable inputs. The most significant observable inputs are market interest rates, exchange rates and yields. The fair value of unlisted investments classified within Level 3 is determined using a discounted cash flow valuation technique. The significant unobservable inputs used are expected future growth rates and discount rates. Changing these unobservable inputs based on reasonable alternative assumptions would not significantly change the valuation of the investments. The fair value estimate of the put option over a non-controlling interest in the U.S.A. classified within Level 3 is determined using a discounted cash flow valuation technique and contains a number of unobservable inputs, including the expected fair value of the associated investment property at the expected time of exercise, the expected time of exercise itself and the discount rate used. The expected time of exercise is in 2023 and the discount rate used is 6.3% (31st December 2022: 6.3%). The investment property’s fair value at the expected time of exercise is itself subject to a number of unobservable inputs which are similar to the inputs for the Group’s other completed investment properties, including the expected fair market rent and the expected capitalisation rate. If the investment property’s expected fair value at the time of exercise is higher, the fair value of the put option would also be higher at 30th June 2023. If the expected time of exercise is later or if the discount rate is higher, the fair value of the put option would be lower. The opposite is true for an earlier time of exercise or a lower discount rate. (b) Fair values of financial assets and liabilities carried at other than fair value The carrying amounts of the Group’s financial assets and liabilities carried at amortised cost are not materially different from their fair values at 30th June 2023 and 31st December 2022 except for the following financial liabilities, for which their carrying amounts and fair values are disclosed below: 30th June 2023 31st December 2022 Carrying amount Fair value Carrying amount Fair value HK$M HK$M HK$M HK$M Long-term loans and bonds 33,108 32,281 22,835 21,910 71

Notes to the Condensed Interim Financial Statements 19. Derivative Financial Instruments The Group uses derivative financial instruments solely for management of an underlying risk. The Group minimises its exposure to market risk since gains and losses on derivatives offset the losses and gains on the assets, liabilities or transactions being hedged. It is the Group’s policy not to enter into derivative transactions for speculative purposes. 30th June 2023 31st December 2022 Assets Liabilities Assets Liabilities HK$M HK$M HK$M HK$M Interest rate and cross-currency swaps – cash flow hedges – due within one year – – – – – due after one year 142 – 96 – 20. Trade and Other Receivables 30th June 31st December 2023 2022 HK$M HK$M Trade debtors 424 385 Prepayments and accrued income 110 85 Amounts due from intermediate holding company – 5 Other financial assets at amortised cost 539 520 Other receivables 1,980 1,839 3,053 2,834 The analysis of the age of trade debtors at the end of the period (based on their invoice dates) is as follows: 30th June 31st December 2023 2022 HK$M HK$M Up to 3 months 369 354 Between 3 and 6 months 33 15 Over 6 months 22 16 424 385 There is no concentration of credit risk with respect to trade and other receivables, as the Group has a large number of customers. The Group does not grant any credit terms to its customers, except to corporate customers in the hotel division where commercial trade credit terms are given. 72 Swire Properties Limited Interim Report 2023

21. Trade and Other Payables 30th June 31st December 2023 2022 HK$M HK$M Trade creditors 906 812 Rental deposits from tenants 3,137 2,715 Deposits received on sale of investment properties 54 1 Put option in respect of a non-controlling interest 583 590 Other payables Accrued capital expenditure 1,600 1,283 Amounts due to intermediate holding company 110 83 Amounts due to a joint venture company – 113 Interest-bearing advances from joint venture companies – 256 Advances from a non-controlling interest 1,190 1,173 Others 2,352 2,982 5,252 5,890 9,932 10,008 The analysis of the age of trade creditors at the end of the period is as follows: 30th June 31st December 2023 2022 HK$M HK$M Up to 3 months 906 812 22. Lease Liabilities 30th June 31st December 2023 2022 HK$M HK$M Maturity profile at the end of the period is as follows: Within 1 year 77 79 Between 1 and 2 years 80 73 Between 2 and 5 years 207 192 Over 5 years 289 270 653 614 Amount due within one year included under current liabilities (77) (79) 576 535 73

Notes to the Condensed Interim Financial Statements 23. Deferred Taxation The movement on the net deferred tax liabilities account is as follows: HK$M At 1st January 2023 11,184 Translation differences (390) Acquisition of subsidiary companies (note 31) 2,536 Charged to profit or loss (note 9) 337 Charged to other comprehensive income 1 At 30th June 2023 13,668 Represented by: Deferred tax assets (64) Deferred tax liabilities 13,732 13,668 24. Assets Classified as Held for Sale Assets classified as held for sale represent the Group’s 100% interest in investment properties comprising 1,070 car parking spaces at stages I to IX of the Taikoo Shing residential development in Hong Kong. 25. Share Capital Company 30th June 31st December 2023 2022 HK$M HK$M Issued and fully paid with no par value: At 30th June 2023 and 31st December 2022 5,850,000,000 ordinary shares 10,449 10,449 There was no purchase, sale or redemption by the Company, or any of its subsidiaries, of the Company’s shares during the period. 74 Swire Properties Limited Interim Report 2023

26. Reserves Property Cash flow Revenue Merger revaluation hedge Translation reserve reserve reserve reserve reserve Total HK$M HK$M HK$M HK$M HK$M HK$M At 1st January 2023 280,008 (1,108) 2,007 9 (2,154) 278,762 Profit for the period 2,223 – – – – 2,223 Other comprehensive income Cash flow hedges – gains recognised during the period – – – 20 – 20 – transferred to net finance charges – – – (14) – (14) – deferred tax – – – (1) – (1) Share of other comprehensive income of joint venture and associated companies – recognised during the period – – – – (485) (485) – reclassified to profit or loss on deemed disposal – – – – 228 228 Net translation differences on foreign operations recognised during the period – – – – (1,796) (1,796) Total comprehensive income for the period 2,223 – – 5 (2,053) 175 2022 second interim dividend (note 10) (3,978) – – – – (3,978) At 30th June 2023 278,253 (1,108) 2,007 14 (4,207) 274,959 Note: The Group’s revenue reserve at 30th June 2023 includes HK$1,931 million representing the declared first interim dividend for the year ending 31st December 2023 (31st December 2022: HK$3,978 million representing the second interim dividend for 2022) (note 10). 27. Non-controlling Interests The movement of non-controlling interests during the period is as follows: HK$M At 1st January 2023 3,047 Share of profit less losses for the period 41 Share of translation differences on foreign operations (51) Share of total comprehensive income for the period (10) Dividends paid and payable (46) At 30th June 2023 2,991 75

Notes to the Condensed Interim Financial Statements 28. Capital Commitments 30th June 31st December 2023 2022 HK$M HK$M The Group’s outstanding capital commitments at the end of the period in respect of: Property, plant and equipment Contracted but not provided for 13 12 Authorised by Directors but not contracted for 459 491 Investment properties Contracted but not provided for 1,464 2,986 Authorised by Directors but not contracted for 16,091 17,028 18,027 20,517 The Group’s share of capital commitments of joint venture companies at the end of the period* Contracted but not provided for 545 393 Authorised by Directors but not contracted for 6,303 7,044 6,848 7,437 * of which the Group is committed to funding HK$982 million (31st December 2022: HK$331 million). At 30th June 2023, the Group was committed to inject capital of HK$405 million (31st December 2022: HK$421 million) into joint venture companies. 29. Contingencies Guarantees outstanding at the end of the period in respect of bank loans and other liabilities of joint venture companies totalled HK$3,848 million (31st December 2022: HK$4,181 million). Bank guarantees given in lieu of utility deposits and other liabilities totalled HK$73 million at the end of the period (31st December 2022: HK$73 million). 30. Related Party Transactions There is an agreement for services (“Services Agreement”), in respect of which John Swire & Sons (H.K.) Limited (“JS&SHK”), an intermediate holding company, provides services to various companies in the Group and under which costs are reimbursed and fees payable. In return for these services, JS&SHK receives annual fees calculated as 2.5% of the Group’s relevant consolidated profit before taxation and non-controlling interests after certain adjustments. The Services Agreement was renewed on 1st October 2022 for three years expiring on 31st December 2025. For the six months ended 30th June 2023, service fees payable amounted to HK$106 million (30th June 2022: HK$107 million). Expenses of HK$66 million (30th June 2022: HK$51 million) were reimbursed at cost; in addition, HK$49 million (30th June 2022: HK$43 million) in respect of shared administrative services was reimbursed. 76 Swire Properties Limited Interim Report 2023

30. Related Party Transactions (continued) Under a tenancy framework agreement (the “Tenancy Framework Agreement”) between JS&SHK, Swire Pacific Limited and the Company dated 14th August 2014, members of the Group enter into tenancy agreements with members of the JS&SHK group and members of the Swire Pacific group from time to time on normal commercial terms based on prevailing market rentals. The Tenancy Framework Agreement was renewed on 1st October 2021 for a further term of three years expiring on 31st December 2024. For the six months ended 30th June 2023, the aggregate rentals payable to the Group by members of the JS&SHK group and members of the Swire Pacific group under tenancies to which the Tenancy Framework Agreement applies amounted to HK$53 million (30th June 2022: HK$57 million) and HK$21 million (30th June 2022: HK$22 million) respectively. The above transactions under the Services Agreement and the Tenancy Framework Agreement are continuing connected transactions, in respect of which the Company has complied with the disclosure requirements of Chapter 14A of the Listing Rules. The following is a summary of significant transactions between the Group and related parties (including transactions under the Tenancy Framework Agreement), which were carried out in the normal course of the Group’s business, in addition to those transactions disclosed elsewhere in the financial statements. For the six months ended 30th June Joint venture Fellow subsidiary Immediate Intermediate Other related companies companies holding company holding company parties 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Note HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M Purchase of services (a) – – 17 14 – – – – – – Rendering of services (a) 31 28 – – – – 1 1 – – Rental revenue (b) – – 21 17 – 5 53 57 1 – Rental expenses (b) 5 4 – – – – – – – – Revenue from hotels 7 4 2 – – – 1 – 2 42 Interest income (c) 54 16 – – – – – – – – Interest charges (c) 2 7 – – – – – – – – Notes: (a) Purchase and rendering of services from and to related parties were conducted in the normal course of business at prices and on terms no less favourable to the Group than those charged by/to and contracted with other suppliers/customers of the Group. (b) The Group has, in the normal course of its business, entered into lease agreements with related parties to lease premises for varying periods up to six years. The leases were entered into on normal commercial terms. (c) Loans advanced to joint venture and associated companies at 30th June 2023 are disclosed in notes 16 and 17. Advances from joint venture companies are disclosed in note 21. 77

Notes to the Condensed Interim Financial Statements 31. Business Combinations As mentioned in note 16, the Group further acquired 35% equity interests in existing joint venture companies in Sino-Ocean Taikoo Li Chengdu in the Chinese Mainland from Sino-Ocean Group Holding Limited and its subsidiaries and these joint venture companies became wholly-owned subsidiaries of the Group during the period after completion. The acquisition is expected to make immediate income contribution to the Group and create long term value for the Group and its shareholders. Details of the purchase consideration, the net identifiable assets acquired and goodwill are as follows: Fair value HK$M Property, plant and equipment 632 Investment properties* 15,291 Intangible assets 8 Right-of-use assets 105 Stocks 6 Trade and other receivables 536 Cash and cash equivalents 684 Trade and other payables (837) Taxation payable (27) Long-term loans and bonds (3,151) Lease liabilities (42) Deferred tax liabilities (2,536) Net identifiable assets acquired 10,669 Goodwill 1,419 12,088 Satisfied by: Purchase consideration settled in cash 4,072 Deferred consideration 311 Fair value of the equity interests previously held by the Group 7,705 12,088 Analysis of the net outflow of cash and cash equivalents for acquisition: Purchase consideration settled in cash 4,072 Less: Cash and cash equivalents acquired (684) Net cash outflow on acquisition 3,388 * The amounts include investment properties acquired of HK$15,230 million and initial leasing costs acquired of HK$61 million. 78 Swire Properties Limited Interim Report 2023

31. Business Combinations (continued) The fair value of the acquired receivables was HK$536 million and included trade receivables with a fair value of HK$65 million. None of these are expected to be uncollectible. The goodwill is mainly attributable to the growth opportunity. These benefits do not qualify for separate recognition of intangible assets and are not expected to be deductible for tax purposes. Gain arising from remeasuring the fair value of the equity interests in Sino-Ocean Taikoo Li Chengdu held by the Group before the acquisition amounted to HK$551 million. It is recognised in the consolidated statement of profit or loss within other net gains/(losses). Acquisition-related costs of HK$11 million have been recognised in the consolidated statement of profit or loss. The acquired business contributed revenue of HK$534 million and a profit of HK$674 million to the Group for the period from the date of completion of its acquisition (22nd February 2023) to 30th June 2023. If the acquisition had occurred on 1st January 2023, the acquired business would have contributed pro-forma revenue of HK$772 million and a profit of HK$787 million for the period ended 30th June 2023. These amounts have been calculated using the results of the acquired business and adjusting them for the additional depreciation and amortisation that would have been charged assuming fair value adjustments to property, plant and equipment and intangible assets had applied from 1st January 2023, together with the consequential tax effects. 79

Supplementary Information Corporate Governance The Company complied with all the code provisions set out in the Corporate Governance Code (the “CG Code”) contained in Part 2 of Appendix 14 to the Listing Rules throughout the accounting period covered by the interim report. The Company has adopted codes of conduct regarding securities transactions by Directors and by relevant employees (as defined in the CG Code) on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) set out in Appendix 10 to the Listing Rules. On specific enquiries made, all Directors have confirmed that, in respect of the accounting period covered by the interim report, they have complied with the required standard set out in the Model Code and the Company’s code of conduct regarding Directors’ securities transactions. The interim results have been reviewed by the Audit Committee of the Company and by the external auditors. Share Capital There was no purchase, sale or redemption by the Company, or any of its subsidiaries, of the Company’s shares during the period. Directors’ Particulars Changes in the particulars of the Directors are set out as follows: 1. J.L. Wang retired as an Independent Non-Executive Director of the Company with effect from the conclusion of the Company’s 2023 annual general meeting held on 9th May 2023 (the “2023 AGM”). 2. A.C.L. Zhu was appointed as an Independent Non-Executive Director of the Company with effect from the conclusion of the Company’s 2023 AGM. 3. M.Y. Wu was appointed as an executive director of Shanghai Sunnyview Eldercare Company Limited with effect from 23rd May 2023 and retired as a board advisor of Homeinns Hotel Group with effect from 22nd May 2023. Ms. Wu is also proposed to be appointed as an independent non-executive director of Alibaba Health Information Technology Limited (“Ali Health”) which will take effect, if approved, from the conclusion of the annual general meeting of Ali Health to be held on 11th August 2023. 80 Swire Properties Limited Interim Report 2023

Directors’ Interests At 30th June 2023, the register maintained under Section 352 of the Securities and Futures Ordinance (“SFO”) showed that Directors held the following interests in the shares of Swire Properties Limited and its associated corporations (within the meaning of Part XV of the SFO), John Swire & Sons Limited and Swire Pacific Limited: Capacity Beneficial Interest Percentage Swire Properties Limited Trust Total No. of Voting Personal Family Interest of Shares Shares (%) Note L.K.L. Cheng 1,000 – – 1,000 0.00002 M.B. Swire – – 1,148,812 1,148,812 0.01964 (3) Percentage Capacity of Issued Share Capital Beneficial Interest (comprised John Swire & Sons Limited Trust Total No. in the class) Personal Family Interest of Shares (%) Note Ordinary Shares of £1 N.A.H. Fenwick – – 3,136,000 3,136,000 3.14 (1) M.B. Swire 2,193,550 630,000 14,569,960 17,393,510 17.39 (2) 8% Cum. Preference Shares of £1 N.A.H. Fenwick – – 2,822,400 2,822,400 3.14 (1) M.B. Swire 3,966,125 – 11,904,363 15,870,488 17.63 (2) Percentage Capacity of Voting Shares Beneficial Interest (comprised Swire Pacific Limited Trust Total No. in the class) Personal Family Interest of Shares (%) Note ‘A’ shares L.K.L. Cheng 10,000 – – 10,000 0.0012 M.B. Swire 180,000 – 301,000 481,000 0.0561 (3) ‘B’ shares M.B. Swire 390,000 – 3,024,617 3,414,617 0.1168 (2) Notes: (1) N.A.H. Fenwick was a trustee of a trust which held 3,136,000 ordinary shares and 2,822,400 preference shares in John Swire & Sons Limited included under trust interest and did not have any beneficial interest in those shares. (2) M.B. Swire was a trustee and/or a potential beneficiary of trusts which held 3,246,624 ordinary shares and 1,691,961 preference shares in John Swire & Sons Limited and 1,225,395 ‘B’ shares in Swire Pacific Limited included under trust interest and did not have any beneficial interest in those shares. M.B. Swire was one of the executors of a will which held 1,799,222 ‘B’ shares in Swire Pacific Limited included under trust interest and did not have any beneficial interest in those shares. (3) All shares held by M.B. Swire under trust interest were held by him as one of the executors of a will and he did not have any beneficial interest in those shares. 81

Supplementary Information Directors’ Interests (continued) Other than as stated above, no Director or Chief Executive of the Company had any interest or short position, whether beneficial or non-beneficial, in the shares or underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO). Substantial Shareholders’ and Other Interests The register of interests in shares and short positions maintained under Section 336 of the SFO shows that at 30th June 2023 the Company had been notified of the following interests in the shares of the Company held by substantial shareholders and other persons: Percentage of Long position Number of Shares Voting Shares (%) Type of Interest (notes) Swire Pacific Limited 4,796,765,835 82.00 Beneficial owner (1) John Swire & Sons Limited 4,796,765,835 82.00 Attributable interest (2) Notes: (1) Swire Pacific Limited was interested in 4,796,765,835 shares of the Company as beneficial owner. (2) John Swire & Sons Limited and its wholly-owned subsidiary John Swire & Sons (H.K.) Limited were deemed to be interested in a total of 4,796,765,835 shares of the Company, in which Swire Pacific Limited was interested, by virtue of the John Swire & Sons Limited group being interested in 60.31% of the equity of Swire Pacific Limited and controlling 68.13% of the voting rights attached to shares in Swire Pacific Limited. 82 Swire Properties Limited Interim Report 2023

Glossary Terms Ratios References in this document to Hong Kong are to Profit attributable Hong Kong SAR. to the Company’s Earnings per share shareholders Attributable gross rental income Gross rental income = Weighted average number less amount shared by non-controlling interests plus the of shares in issue during Group’s share of gross rental income of joint venture and the period associated companies, and adjusted with related rental concession recognised in the consolidated statement of Equity attributable to Equity before profit or loss. the Company’s = non-controlling interests shareholders per share Number of shares in issue Equity attributable to the Company’s shareholders at the end of the period Equity before non-controlling interests. Gross borrowings Total of loans, bonds and overdrafts. Interest cover = Operating profit Net finance charges Net debt Total borrowings and lease liabilities less short-term deposits and bank balances. Cash interest cover = Operating profit Underlying profit Reported profit adjusted principally Total of net finance charges and capitalised interest for the impact of (i) changes in the fair value of investment properties, (ii) deferred tax on investment Net debt properties and (iii) amortisation of right-of-use assets Gearing ratio = Total equity reported under investment properties. Recurring underlying profit Underlying profit adjusted for significant credits and charges of a non-recurring nature, including gains on the sale of interests in investment properties. 83

Financial Calendar and Information for Investors Financial Calendar 2023 Interim Report available to shareholders 5th September Shares traded ex-dividend 6th September Share register closed for 2023 first interim dividend entitlement 8th September Payment of 2023 first interim dividend 12th October Annual results announcement March 2024 Annual General Meeting May 2024 Registered Office Investor Relations Swire Properties Limited E-mail: [email protected] 33rd Floor, One Pacific Place 88 Queensway Public Affairs Hong Kong E-mail: [email protected] Registrars Tel: (852) 2844-3888 Fax: (852) 2918-9960 Computershare Hong Kong Investor Services Limited Website: www.swireproperties.com 17M Floor, Hopewell Centre 183 Queen’s Road East Request for Feedback Hong Kong In order that we may improve our reporting, we would be Website: www.computershare.com grateful to receive your comments on our public Stock Code announcements and disclosures via e-mail to [email protected]. Hong Kong Stock Exchange 01972 Auditors PricewaterhouseCoopers Certified Public Accountants and Registered PIE Auditor 22nd Floor, Prince’s Building Central Hong Kong Disclaimer This document may contain certain forward-looking statements that reflect the Company’s beliefs, plans or expectations about the future or future events. These forward-looking statements are based on a number of assumptions, current estimates and projections, and are therefore subject to inherent risks, uncertainties and other factors beyond the Company’s control. The actual results or outcomes of events may differ materially and/or adversely due to a number of factors, including the effects of COVID-19, changes in the economies and industries in which the Group operates (in particular in Hong Kong and the Chinese Mainland), macro-economic and geopolitical uncertainties, changes in the competitive environment, foreign exchange rates, interest rates and commodity prices, and the Group’s ability to identify and manage risks to which it is subject. Nothing contained in these forward-looking statements is, or shall be, relied upon as any assurance or representation as to the future or as a representation or warranty otherwise. Neither the Company nor its directors, officers, employees, agents, affiliates, advisers or representatives assume any responsibility to update these forward-looking statements or to adapt them to future events or developments or to provide supplemental information in relation thereto or to correct any inaccuracies. 84 Swire Properties Limited Interim Report 2023

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Stock Code: 01972 ٰ΅˾໮j1972 Interim Report ɚཧɚɧϋ 2023 ʕಂజѓ www.swireproperties.com