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