Notes to the Condensed Interim Financial Statements 2. Basis of Preparation (continued) (e) In December 2021, the Organisation for Economic Co-operation and Development (“OECD”) issued model rules for a new global minimum tax framework (“Pillar Two”) (i.e. BEPS 2.0), and various governments around the world have issued, or are in the process of issuing, legislation on this. The ultimate holding company of the Group is in the process of assessing the full impact of this in various regions that the Group has operations. The HKSAR Government and the respective governments of the Group’s major operating regions have not enacted the legislation on Pillar Two as of the date of approval of these 2024 condensed interim financial statements. 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 2023 annual financial statements. There have been no changes in the Group’s financial risk management structure, policies and procedures since the year end. 4. Revenue Revenue represents sales by the Company and its subsidiary companies to external customers which comprises: Six months ended Year ended 30th June 31st December 2024 2023 2023 HK$M HK$M HK$M Gross rental income from investment properties 6,665 6,677 13,408 Property trading 88 89 166 Hotels 464 476 979 Rendering of other services 62 55 117 7,279 7,297 14,670 5. Cost of Sales Six months ended Year ended 30th June 31st December 2024 2023 2023 HK$M HK$M HK$M Direct rental outgoings in respect of investment properties 1,501 1,483 3,266 Property trading 62 63 119 Hotels 441 424 899 2,004 1,970 4,284 62 Swire Properties Limited Interim Report 2024