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