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