Annual Report 2023

Stock Code: 01972 Annual Report 2023

Cover image: TWO TAIKOO PLACE, HONG KONG

CONTENTS 2 Company Profile AUDITOR’S REPORT 6 2023 Highlights AND ACCOUNTS 12 Financial Highlights 138 Independent Auditor’s Report 13 Ten-Year Financial Summary 142 Consolidated Statement of 16 Chairman’s Statement Profit or Loss 20 Chief Executive’s Statement 143 Consolidated Statement of Other Comprehensive Income 24 Key Business Strategies 144 Consolidated Statement of Financial Position MANAGEMENT DISCUSSION & 145 Consolidated Statement of ANALYSIS Cash Flows 28 Review of Operations 146 Consolidated Statement of 74 Financial Review Changes in Equity 81 Financing 147 Notes to the Financial Statements 205 Accounting Policies CORPORATE GOVERNANCE & 208 Principal Subsidiary, Joint Venture SUSTAINABILITY and Associated Companies 92 Corporate Governance SUPPLEMENTARY 110 Risk Management INFORMATION 118 Directors and Officers 211 Schedule of Principal 120 Directors’ Report Group Properties 127 Sustainable Development 223 Glossary 224 Financial Calendar and Information for Investors

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 and management. 2

SWIRE PROPERTIES ANNUAL REPORT 2023 Founded in Hong Kong in 1972, the Company is listed on projects under development in Beijing, Shanghai, Sanya The Stock Exchange of Hong Kong Limited and, with its and Xi’an. Similar in scale to our developments in Hong subsidiaries, employs around 5,700 people. The Company’s Kong, our Chinese Mainland properties are in prime shopping malls are home to more than 2,200 retail outlets. locations with excellent transport connections. Its offices house a working population estimated to The Company has interests in the luxury and high quality exceed 70,000. residential markets in Hong Kong, the Chinese Mainland, In Hong Kong, we have spent over 50 years developing an Indonesia, Vietnam and Thailand. There are also land banks industrial area into what is now Taikoo Place and Cityplaza, in Miami, U.S.A. Swire Hotels develops and manages hotels one of Hong Kong’s largest business districts comprising in Hong Kong, the Chinese Mainland and the U.S.A., with a office space, the largest shopping mall on Hong Kong confirmed expansion plan to Japan. Island and a hotel. Pacific Place, built on the former Victoria The Company has a presence in the Brickell financial Barracks site, is one of Hong Kong’s premier retail and district in Miami, U.S.A., where it has investment properties. business addresses. In the Chinese Mainland, the Company The Company has offices in South East Asia which explore has six major commercial projects in operation in Beijing, opportunities in the property markets in the region. Guangzhou, Chengdu and Shanghai, and has several 3

CREATIVE TRANSFORMATION 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. 4

SWIRE PROPERTIES ANNUAL REPORT 2023 5

03 2023 Swire Properties Arts Month returned. Continued partnership HIGHLIGHTS with Art Basel Hong Kong; and hosted the monumental work Gravity, the first offsite art installation from the Encounters sector, at Pacific Place. ArtisTree also celebrated this March event with the Urban Rocks exhibition. Hong Kong 07 08 09 Successfully priced the Company’s Announced a new name for New partnership with Lujiazui first public Renminbi “green dim sum” Taikoo Li Chengdu after the Group to develop Yangjing and bonds, making Swire Properties the acquisition of the remaining New Bund Mixed-use Projects first Hong Kong corporate to issue a interest completed. in Pudong. RMB-denominated public green bond. Chengdu Shanghai Hong Kong 11 11 Entered into agreements to sell Official groundbreaking for Taikoo Li Xi’an, 12 floors of One Island East to the a joint venture project. Securities and Futures Commission. Xi’an Hong Kong 6

SWIRE PROPERTIES ANNUAL REPORT 2023 06 07 07 Officially launched Quarryside, Started the presale Completed the acquisition of Wah Ha a new community space in Quarry for LA MONTAGNE, a Factory Building in Quarry Bay, which Bay, with Swire Properties as the joint venture residential will be redeveloped for office and project’s Supporting Partner. development, in commercial use together with the Hong Kong Wong Chuk Hang. adjacent Zung Fu Industrial Building. Hong Kong Hong Kong 10 10 The Upper House recognised in the Obtained full ownership of top five best hotels in the world by the 983 to 987A King’s Road and inaugural World’s 50 Best Hotels list. 16 to 94 Pan Hoi Street, a joint Hong Kong venture project in Quarry Bay. Hong Kong 02 2024 02 2024 Completed Six Pacific Place office tower, Savyavasa, a luxury residential property which marks a key milestone to the expansion in Indonesia, officially topped out. of the greater Pacific Place portfolio. Jakarta Hong Kong 7

2023 HIGHLIGHTS 2023 SUSTAINABLE DEVELOPMENT HIGHLIGHTS “Our vision is to be the leading sustainable development performer in our industry globally by 2030.” – GUY BRADLEY, CHAIRMAN 8

SWIRE PROPERTIES ANNUAL REPORT 2023 Ranked 2nd globally in the Real Estate Management and Development Industry Ranked 1st globally in the “Environmental Dimension” score DJSI World constituent company for the 7th consecutive year Global Sector Leader (Mixed Use Sector) for the 7th consecutive year sector leader 2023 Global Development Sector Leader (Mixed Use Sector) for the 4th consecutive year No. 1 for the 6th consecutive year, and maintained the highest possible 2023-2024 rating – “AAA” S&P Sustainability Yearbook 2024 Top 10% S&P Global ESG Score S&P Sustainability Yearbook (China) 2023 Top 1% S&P (China) ESG Score Green Building Award 2023 by the Hong Kong 2023 Best Annual Reports Award by the Green Building Council and the Professional Hong Kong Management Association Green Building Council Sustainable Development (SD) Report 2022: Best Citygate won Grand Award in the Existing Environmental, Social and Governance Reporting Buildings Category (Facilities Management) (Property Development & Investment category) Six Pacific Place won Grand Award in the Annual Report 2022: Silver Award New Buildings Category (Projects under (General category) Construction and/or Design – Commercial) Taikoo Li Qiantan won Merit Award in the Best Corporate Governance and ESG New Buildings Category (Completed Projects – Awards 2023 by Hong Kong Institute of Commercial) Certified Public Accountants ESG Award – Non-Hang Seng Index 2023 Hong Kong Sustainability Award (Large Market Capitalisation) Category by the Hong Kong Management Association Grand Award FinanceAsia Achievement Awards 2023 House Awards – Best Issuer – ESG 2023 RICS Hong Kong Awards Deal Awards (Asia) – Best Sustainable Finance Sustainability Award Deal (Hong Kong SAR), Swire Properties Limited CNH3.2bn RegS senior unsecured green dim sum Hong Kong Green Building Council Zero- public bond offering Carbon-Ready Building Certification Scheme 17 buildings certified under the newly launched IFR Asia Awards 2023 scheme in 2023 Country awards – Renminbi Bond, Swire Properties’ RMB3.2bn dual-tranche green dim 2023 Randstad Employer Brand Awards sum bond Top 5 Most Attractive Employers in Hong Kong The Asset Triple A Sustainable Finance 2023 Gender Equality Global Report & Ranking Awards 2024 by Equileap Best Green Bond – Real Estate (Hong Kong SAR), Top 10 List Swire Properties CNH3.2bn dual-tranche green dim sum bond 9

Places Places People 2023 HIGHLIGHTS SUSTAINABLE DEVELOPMENT (SD) 2030 STRATEGY: 2023 HIGHLIGHTS Places People Partners Through effective We aim to create an environment where our We aim to continue to develop long-term, mutually placemaking and long-term employees will be healthier, happier and more beneficial relationships with our business partners placekeeping, we aim to productive, to invest in our employees and to and other key parties so as to improve our continue to transform the provide rewarding career paths so as to environmental, social and economic performance. places in which we invest so as develop a diverse and industry-leading team. to create value, whilst Suppliers retaining their character, Talent Management Performance 2025 KPI 2023 Progress supporting communities and 2025 KPI 2023 Progress (Environment) People Reduce 5-year rolling Achieved a reduction of enhancing people’s lives. Partners average of accident A 25% increase 23 training hours/ 58% in accident rate 3 Sustainable in training hours/ employee/year rate in our Hong Kong 1 development projects Placemaking employee/year ( 89%) by Taikoo Li Xi’an, located at the ~157,000 50% Small Wild Goose Pagoda training hours delivered HK$559 million spent on sustainable historical and cultural zone, a Performance Established a Workplace Wellbeing Framework procurement4 UNESCO World Heritage site, Performance (Economic) broke ground in November and designed to cultivate a healthier, happier and Deployed a supply chain ESG assessment platform (Environment) Partners more productive work environment will become our largest Taikoo that track sustainability performance and carbon Li project in the Chinese Occupational Health and Safety emissions of suppliers Mainland. The project will Implementing a 2023-2025 Health and Safety Tenants incorporate elements of Roadmap to raise safety awareness among cultural heritage preservation, employees and effectively identify and remove Launched the “Green Performance Pledge net-zero design, climate serious hazards from the workplace (GPP) Academy”, a three-year partnership resilience to create a vibrant Performance with BEC, offering office tenants and sustainable world-class capacity building programme to Performance 2025 KPI 2023 Progress commercial destination (Economic) drive energy, water, and waste (Environment) Maintain Lost Time Injury Rate (“LTIR”) reduction. Wellness Non-hotel operations: Non-hotel operations: 2025 KPI 2023 Progress Taikoo Square and Taikoo ≤1.2 0.64 50% of tenants in 90 tenants signed GPP, Garden, our two new green 5 Hotel operations: Hotel operations: our office portfolios which covered 41% of spaces, will provide ≤2.0 1.16 sign the Green tenants, equivalent to over approximately 69,000 sq ft of Performance Pledge to 3.5 million sq ft LFA in open space for the enjoyment jointly improve Performance Diversity & Inclusion our office portfolio in Hong of the community and promote environmental Kong and the Chinese (Economic) 2025 KPI 2023 Progress urban biodiversity Maintain a female 41.9% of the performance Mainland Vibrancy representation of no workforce are female 107 F&B tenants in Hong Kong and less than 40% in Recognised Launched “Quarryside”, a new the workforce the Chinese Mainland with Green Kitchen Awards community space offering The Smart Reusable Cup System at Taikoo Place and diverse experiences to promote Maintain a gender 42.9% of senior Pacific Place has collectively avoided the disposal of a creative, healthy and balance in senior management positions over sustainable lifestyle management are held by women 23,000 single-use cups since its launch Maintain gender pay Gender pay ratio 2 ratio at 1:1 (female to male) : 1:0.92 Volunteering Our Community Ambassador Programme contributed 7,544 volunteer service hours, supporting 48 activities 1 Compared to the baseline year of 2016. 4 Products that meet specific sustainability criteria such as green certification or accreditation by 2 Gender pay ratio is calculated based on a non-weighed average methodology. reputable, independent third parties. 3 Using 2015-2019 (5-year average) as baseline. Accidental rate represents the number of 5 Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of reportable accidents per 1,000 contractor workers. It is calculated as the total number of Taikoo Place and Pacific Place in Hong Kong and Taikoo Hui Guangzhou. reportable accidents multiplied by 1,000 and then divided by average daily number of 6 Compared to the 2019 baseline. contractor workers on-site. 7 Compared to the 2018 baseline.

Places Places People People Partners Partners Performance (Environment) SWIRE PROPERTIES ANNUAL REPORT 2023 Performance Performance (Environment) (Economic) We aim to continue to design, construct and manage high quality We aim to deliver sustainable economic performance coupled developments that contribute positively to the communities in with good corporate governance and high ethical standards. which we operate and the environment. Financial Performance Climate Change HK$11,570 million in underlying profit attributable Performance to shareholders (Economic) Green Financing 2025 KPI 2023 Progress 2025 KPI 2023 Progress Achieve a minimum of ~60% of current bond and Absolute GHG emissions (Scope 1 and Scope 2): 50% of bond and loan loan facilities are from green 25%6 29% facilities from green financing financing 2030 KPI 2023 Progress First Hong Kong company to issue “Green Dim Sum” Renminbi Value chain GHG emissions Public Bonds, valued at RMB3.2 billion. The transaction was (Scope 3 – Downstream Leased Assets): recognised with the “Deal Awards (Asia) – Best Sustainable 7 Finance Deal (Hong Kong SAR)” at the FinanceAsia Achievement 28% per square metre 40% Awards 2023 Energy Corporate Governance 2025 KPI 2023 Progress 2025 KPI 2023 Progress 8 Reduction of electricity use intensity Maintain no less than 30% 35.7% of our Board positions 9 9 Hong Kong Portfolio Hong Kong Portfolio of female representation on are held by female members 20%6 15% our Board 9 9 Chinese Mainland Portfolio Chinese Mainland Portfolio Disclosure and Communications 13%6 7% Published our sixth set of climate-related financial disclosures Resource and Circularity as per TCFD recommendations and ISSB IFRS S2 Climate-related Disclosures 2025 KPI 2023 Progress Published our nature-related impacts, dependencies, Commercial waste diversion rate risks, and opportunities, in line with the Taskforce on 9 9 Hong Kong Portfolio Hong Kong Portfolio Nature-related Financial Disclosures (TNFD) 30% 26% recommendations 9 9 Chinese Mainland Portfolio Chinese Mainland Portfolio 40% 46% Building/Asset Investment sector leader 2023 2025 KPI 2023 Progress Ranked 2nd globally, Global Sector Leader – 10 100% of wholly-owned 100% of new development Member of the World Index – 7th consecutive year 10 new development projects to projects achieved the highest 7th consecutive year achieve the highest ratings environmental building 92% of wholly-owned existing assessment scheme rating 2023-2024 10 developments achieved the Ranked No. 1 for 6th highest ratings consecutive year, “AAA” rating S&P Sustainability Yearbook 8 The 2025 KPIs under Energy have been updated per our approved 1.5°C-aligned SBT. Energy Use Intensity has been renamed to “Electricity Use Intensity” in 2023 to reflect the use of electricity for the provision of shared services for and in the common parts of our buildings. The actual scope of this KPI remains unchanged. 9 Hong Kong portfolio and Chinese Mainland portfolio refer to our office and retail portfolios and hotels in Hong Kong and the Chinese Mainland respectively. 10 Joint venture projects and trading properties are excluded.

FINANCIAL HIGHLIGHTS Results 2023 2022 For the year Note HK$M HK$M Change Revenue 14,670 13,826 +6% Profit attributable to the Company’s shareholders Underlying (a), (b) 11,570 8,706 +33% Recurring underlying (a), (b) 7,285 7,176 +2% Reported 2,637 7,980 -67% Cash generated from operations 7,492 6,332 +18% Net cash outflow before financing (8,416) (3,243) N/A HK$ HK$ Earnings per share Underlying (c), (d) 1.98 1.49 +33% Recurring underlying (c), (d) 1.25 1.23 +2% Reported (c), (d) 0.45 1.36 -67% Dividend per share First interim 0.33 0.32 +3% Second interim 0.72 0.68 +6% Financial Position At 31st December HK$M HK$M Total equity (including non-controlling interests) 288,149 292,258 -1% Net debt 36,679 18,947 +94% Gearing ratio (a) 12.7% 6.5% +6.2%pt. HK$ HK$ Equity attributable to the Company’s shareholders per share (a) 48.73 49.44 -1% Notes: (a) Refer to glossary on page 223 for definition. (b) A reconciliation between reported profit and underlying profit attributable to the Company’s shareholders is provided on page 29. (c) Refer to note 14 to 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. Underlying HK$M Profit/(Losses) by Segment 12,000 11,570 10,000 8,706 Property investment 4,285 8,000 1,530 Recurring 108 Recurring 6,000 underlying underlying Property trading profit profit 4,000 7,525 7,285 7,409 7,176 Hotels 2,000 0 (140) (341) Divestment (100) -2,000 2023 2022 12

TEN-YEAR FINANCIAL SUMMARY 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M STATEMENT OF PROFIT OR LOSS Revenue Property investment 10,456 10,857 10,902 11,380 12,254 12,410 12,635 12,981 12,340 13,525 Property trading 3,842 4,463 4,760 5,833 1,061 516 312 2,443 921 166 Hotels 1,089 1,127 1,130 1,345 1,404 1,296 641 894 565 979 15,387 16,447 16,792 18,558 14,719 14,222 13,588 16,318 13,826 14,670 Profit Attributable to the Company’s Shareholders Property investment 6,029 6,231 5,938 6,671 8,732 10,061 8,839 8,654 8,025 7,325 Property trading 1,020 1,089 1,199 1,111 99 (18) (87) 601 171 (169) Hotels 30 (303) (117) (43) (41) (70) (524) (307) (341) (100) Change in fair value of investment properties 2,437 7,055 8,030 26,218 19,876 3,450 (4,645) (1,836) 125 (4,419) 9,516 14,072 15,050 33,957 28,666 13,423 3,583 7,112 7,980 2,637 Dividends for the year 3,861 4,154 4,154 4,505 4,914 5,148 5,324 5,558 5,850 6,143 Retained profit 5,655 9,918 10,896 29,452 23,752 8,275 (1,741) 1,554 2,130 (3,506) STATEMENT OF FINANCIAL POSITION Net Assets Employed Property investment 226,607 235,917 248,466 283,045 299,659 289,185 282,257 288,246 293,752 300,678 Property trading 8,210 7,452 6,616 3,942 4,143 7,789 7,249 9,637 11,612 17,334 Hotels 7,801 7,928 7,520 7,738 7,394 7,229 7,243 6,061 5,841 6,816 242,618 251,297 262,602 294,725 311,196 304,203 296,749 303,944 311,205 324,828 Financed by Equity attributable to the Company’s shareholders 207,691 216,247 225,369 257,381 279,275 286,927 288,216 291,624 289,211 285,082 Non-controlling interests 856 1,702 1,856 1,997 2,016 1,984 1,928 1,986 3,047 3,067 Net debt 34,071 33,348 35,377 35,347 29,905 15,292 6,605 10,334 18,947 36,679 242,618 251,297 262,602 294,725 311,196 304,203 296,749 303,944 311,205 324,828 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ Earnings per share 1.63 2.41 2.57 5.80 4.90 2.29 0.61 1.22 1.36 0.45 Dividends per share 0.66 0.71 0.71 0.77 0.84 0.88 0.91 0.95 1.00 1.05 Equity attributable to shareholders per share 35.50 36.97 38.52 44.00 47.74 49.05 49.27 49.85 49.44 48.73 RATIOS Return on average equity attributable to the Company’s shareholders 4.6% 6.6% 6.8% 14.1% 10.7% 4.7% 1.2% 2.5% 2.7% 0.9% Gearing ratio 16.3% 15.3% 15.6% 13.6% 10.6% 5.3% 2.3% 3.5% 6.5% 12.7% Interest cover – times 8.96 13.56 15.48 38.81 33.29 28.85 12.93 20.78 48.26 9.96 Dividend payout ratio 40.6% 29.5% 27.6% 13.3% 17.1% 38.4% 148.6% 78.1% 73.3% 233.0% UNDERLYING Profit (HK$M) 7,152 7,078 7,112 7,834 10,148 24,130 12,166 9,532 8,706 11,570 Return on average equity attributable to the Company’s shareholders 3.5% 3.3% 3.2% 3.2% 3.8% 8.5% 4.2% 3.3% 3.0% 4.0% Earnings per share (HK$) 1.22 1.21 1.22 1.34 1.73 4.12 2.08 1.63 1.49 1.98 Interest cover – times 7.58 7.75 8.89 10.68 12.58 48.16 32.10 32.96 74.74 26.76 Dividend payout ratio 54.0% 58.7% 58.4% 57.5% 48.4% 21.3% 43.8% 58.3% 67.2% 53.1% Notes: 1. The information for all years is shown in accordance with the Group’s current accounting policies and disclosure practices. Consequently figures for years prior to 2023 may be different from those originally presented. 2. The equity attributable to the Company’s shareholders and the returns by segment for 2023 and 2022 are shown in the Financial Review – Investment Appraisal and Performance Review on page 80. 3. Underlying profit is discussed on pages 29 to 31. 4. Refer to Glossary on page 223 for definitions and ratios. 13

TEN-YEAR FINANCIAL SUMMARY Revenue HK$M 20,000 15,000 Property investment 10,000 Property trading 5,000 Hotels 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net Assets HK$M Employed 350,000 300,000 250,000 Property investment 200,000 Property trading 150,000 Hotels 100,000 50,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividends and HK$ Underlying Earnings 4.5 Per Share 4.0 3.5 3.0 2.5 2.0 1.5 Dividends per share 1.0 0.5 Underlying earnings per share 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 14

SWIRE PROPERTIES ANNUAL REPORT 2023 Profit Attributable to HK$M The Company’s 36,000 Shareholders 30,000 24,000 Property Hotels 18,000 investment 12,000 Property Change in fair trading value of investment 6,000 properties 0 Total attributable profit Total underlying profit -6,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Equity and HK$M Net Debt 350,000 300,000 250,000 200,000 Total equity 150,000 Net debt 100,000 50,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Returns on % Average Equity 20 15 10 5 Group Group – underlying 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 15

CHAIRMAN’S STATEMENT We are encouraged by the post-pandemic recovery that we are seeing across the majority of our key markets. Whilst there are challenges ahead, we remain optimistic and see potential for sustainable growth in 2024 and beyond. Dear shareholders, This was a pivotal year for the city’s recovery, and we Despite the challenging economic and geopolitical will continue to partner with the HKSAR Government environment, our strategy remains unchanged. In Hong and all our stakeholders to contribute to Hong Kong’s Kong, we will continue to expand and reinforce Taikoo Place long-term prosperity. and Pacific Place, our core commercial portfolios. In the The Chinese Mainland remains an important engine of Chinese Mainland, we will continue to leverage our “Taikoo global economic growth. We currently operate six Li” and “Taikoo Hui” brands to scale up our presence, with a world-class developments in four key cities, and five focus on retail-led mixed-use developments in Tier-1 and new large-scale projects are now under construction. emerging Tier-1 cities. Our residential trading strategy is to We intend to double our gross floor area in the Chinese acquire appropriate sites for development of luxury and Mainland by 2032. high quality residential projects across Hong Kong, We are also making great strides on the ESG front. the Chinese Mainland and South East Asia. We are recognised as a leader in sustainability, ranking To that end in 2022, the Company announced a plan to second globally on the Dow Jones Sustainability World invest HK$100 billion over ten years, with a target Index in 2023. We are pleased to be helping to put Hong allocation of HK$30 billion to Hong Kong, HK$50 billion to Kong on the world map for innovative sustainability the Chinese Mainland and HK$20 billion to residential solutions, and we remain committed to our ambitious trading projects, including South East Asia. 2023 was a 1.5°C-aligned science-based targets, and to supporting milestone year for Swire Properties. We made significant the wider industry in our collective transition to net zero. progress with our HK$100 billion investment plan, with As we look ahead to 2024, we anticipate new almost 60% of the plan now committed to new and challenges, particularly given current macro-economic ongoing projects. uncertainties. However, we remain greatly encouraged Since the reopening of the borders we have seen a steady by our strong performance in 2023, and we are economic recovery in Hong Kong, thanks to the lifting of all optimistic about the opportunities and the growth travel restrictions and pandemic measures, and various key potential in the future under our HK$100 billion initiatives led by the HKSAR Government. We have been investment plan. pleased to see the gradual return in business and leisure travel, which supports Hong Kong’s status as a major international financial centre and tourism hub. 16

SWIRE PROPERTIES ANNUAL REPORT 2023 Profits and Sustained Expanding our Hong Kong Dividend Growth Office Portfolio Our underlying profit attributable to shareholders Under our HK$100 billion investment plan, HK$30 billion increased by HK$2,864 million from HK$8,706 million in has been allocated to grow our flagship developments 2022 to HK$11,570 million in 2023, primarily reflecting in Hong Kong. We are continuing to invest in the the gain on disposal of nine floors of One Island East in development of a Global Business District at Taikoo Hong Kong. Our recurring underlying profit increased by Place. Our recently completed triple Grade-A office HK$109 million from HK$7,176 million in 2022 to tower, Two Taikoo Place, is now 62% committed. HK$7,285 million in 2023, which principally reflected the The latest phase of Taikoo Place’s redevelopment will strong recovery of our retail portfolio and hotels in Hong be completed in the first half of 2024, and we will soon Kong and the Chinese Mainland. be unveiling an expansive, green, open space to Our reported profit attributable to shareholders in 2023 promote biodiversity, in addition to new elevated was HK$2,637 million, compared with HK$7,980 million in walkways, al fresco dining concepts and year-round arts 2022. There was a fair value loss on investment and cultural events. Taikoo Place is raising the bar once properties of HK$4,401 million in 2023 as compared to a again in line with our placemaking vision, and we are fair value gain on investment properties of HK$1,573 excited to see our plans coming to fruition this year. million in 2022. A change in the fair value of investment In December 2023, we completed the sale of nine floors properties is non-cash in nature and will not have any of office space at One Island East to our anchor tenant, impact on our operating cash flow nor on our underlying the Securities and Futures Commission (“SFC”), a deal profit attributable to shareholders. Our balance sheet which testifies to Taikoo Place’s status as a preferred remains strong. The overall financial position of the location for the financial sector. Company remains healthy and the change is not expected to have any impact on our investment strategy. We will continue to expand Taikoo Place, and our We declared a second interim dividend for 2023 of strategic acquisition of the Zung Fu Industrial Building HK$0.72 per share. This, together with the first interim and Wah Ha Factory Building will enable us to develop dividend of HK$0.33 per share paid in October 2023, our masterplan for the district and to continue our amounts to a full year dividend of HK$1.05 per share, office story. representing a 5% increase over the dividends for 2022. We are also making good progress on scaling our Pacific The second interim dividend for 2023 will be paid on Place portfolio, as the CBD progressively shifts towards Thursday, 2nd May 2024 to shareholders registered at the expanded Admiralty transport hub. To further the close of business on the record date, being Friday, enhance the connectivity of Pacific Place, we are 5th April 2024. Shares of the Company will be traded constructing a new footbridge between Pacific Place ex-dividend from Tuesday, 2nd April 2024. and Harcourt Garden, which will be completed by 2025. Our policy is to deliver sustainable growth in dividends We have completed Six Pacific Place, our newest and to pay out approximately half of our underlying profit Grade-A office tower, and we remain committed to in ordinary dividends over time. With the benefit of our further development of the Pacific Place neighborhood planned investments, we aim to deliver mid-single digit in the future. annual growth in dividends. 17

CHAIRMAN'S STATEMENT Recovery for Hong Kong Retail In November, we broke ground on Taikoo Li Xi’an, our We saw a strong recovery in our Hong Kong retail largest “Taikoo Li” project in the Chinese Mainland to date. business in 2023, with a significant growth in sales and in This is our first investment in Xi’an, and we have dedicated some cases, a return to pre-pandemic sales levels. This is considerable resources to researching the historical an extremely encouraging result after the challenges of background of this unique site, in order to create a truly the pandemic, and we are optimistic for the year ahead. world-class cultural landmark in the city. We believe the HKSAR Government’s initiatives to We are also making good progress on our retail-led promote Hong Kong’s tourism and to boost local development in Haitang Bay, Sanya, which will be our first consumption, in particular in staging world-class events, resort-style shopping mall and a new luxury tourist will continue to have a positive impact on footfall and destination for Hainan. sales in our malls in the long run. In Beijing, INDIGO Phase Two, a new commercial landmark We are pleased with our retail recovery despite the in Chaoyang District is under development, and will feature challenging conditions, and we attribute the growth to seven office towers in addition to a lifestyle hotel and the long-term partnerships with our tenants, which have innovative retail concepts. Our pioneering development of led to exciting collaborations to create new experiences One Taikoo Place and Two Taikoo Place has served as for our customers. We have also been investing in our inspiration for the project, and we aim to deliver a high loyalty programmes, and our local loyalty membership quality, vibrant commercial hub in the capital. increased by over 30% in 2023 compared to the previous We recently announced two significant investments in year. We remain committed to the digital transformation Shanghai’s Pudong District – a new mixed-use project of our business, combining the use of technology with opposite Taikoo Li Qiantan in the New Bund Area and personalised services to reinforce customer loyalty and another large-scale project on the Yangjing waterfront to provide an exceptional retail experience in our malls. along the Huangpu River. These will be our third and fourth New Investments in the large-scale developments in Shanghai, which is now our largest area of operation in the Chinese Mainland. These Chinese Mainland two projects also mark our first foray into the premium The Chinese Mainland is an increasingly important residential market in the Chinese Mainland. market for us, and our mixed-use investments are a key With Hong Kong as our home base, we have a well- driver of our profit growth. We are continuing to make established presence in the Greater Bay Area. We are good progress in building a strong pipeline under the currently developing a new House Collective hotel in HK$50 billion investment plan which we have earmarked Shenzhen Bay, Nanshan district, and are actively exploring for the Chinese Mainland. Our Taikoo Li and Taikoo Hui further investment opportunities in the Greater Bay Area. branded retail developments are all well-established Our Residential Pipeline destinations in their respective cities, and we are expanding our footprint with five new large-scale Our HK$100 billion investment plan also includes an projects in Tier-1 and emerging Tier-1 cities. We are very allocation of HK$20 billion for the proposed development pleased to have had the opportunity to complete the of our residential pipeline in Hong Kong and South East acquisition of the remaining interest in Taikoo Li Asia over the next decade. We have made significant Chengdu, one of our flagship malls in the Chinese progress over the past year, and have built up an exciting Mainland. 18

SWIRE PROPERTIES ANNUAL REPORT 2023 pipeline in Hong Kong. In 2023, in conjunction with our joint Youth empowerment is also a core focus of our community venture partners, we launched LA MONTAGNE, a new care, and we have been active in developing and luxury residential development at The Southside in Wong sponsoring various initiatives to provide opportunities Chuk Hang. for young people in Hong Kong. In South East Asia, we announced our first investment in As Hong Kong recovers in the wake of the pandemic, the residential market in Bangkok in early 2023, to develop we are working closely with the HKSAR Government and a prime site at one of the city’s most prestigious addresses. our partners to boost the local economy with special In addition to three projects currently under development community initiatives. In 2023, these included the in Ho Chi Minh City, Vietnam and in Jakarta, Indonesia, we Summer Festival at the new Quarryside community space, are exploring new residential opportunities in Singapore. as well as our annual White Christmas Street Fair, which was extended over two weekends with longer opening Leadership in ESG & hours for the public. We hope these efforts will continue to Community Investment provide a platform for homegrown businesses whilst supporting the city’s economic recovery. ESG and sustainable development remain at the top of our agenda, and we are collaborating closely with our Outlook stakeholders and setting ambitious targets across the business. We have received international recognition for We are encouraged by the post-pandemic recovery that we our achievements, and we continue to explore new are seeing across the majority of our key markets. Whilst solutions to improve our business and to support the there are challenges ahead, we remain optimistic and see wider industry. potential for sustainable growth in 2024 and beyond. In 2023, we became the first Hong Kong corporate to issue We will continue to focus on realising our HK$100 billion a public “dim sum” green bond of RMB3.2 billion to fund investment plan and on delivering our pipeline of mixed- eligible projects. The proceeds from these bonds will use and residential projects across our core markets in enable us to develop projects with the highest green Hong Kong, the Chinese Mainland and South East Asia. credentials, and in the long term, pave the way for Swire We see long-term potential for these markets, and we Properties to pioneer new ground in sustainability. will continue to seek new investment opportunities in Over the past year, we have also piloted the adoption of an the future. internal carbon pricing (“ICP”) mechanism. This innovative I should like to express my appreciation to our approach will help determine the potential impact of shareholders, our valued partners and to the wider carbon emissions from our investments and quantify community for your continued support. Most of all, carbon risks to our operations, allowing us to reallocate thanks must go to the team at Swire Properties for their capital to low-carbon investments. exceptional work and dedication this past year. We remain fully invested in working with local communities. Our colleagues, their friends and families are at the heart of Guy Bradley Swire Properties’ Community Ambassador Programme, and Chairman they continue to demonstrate commitment and passion for Hong Kong, 14th March 2024 giving back to our communities. 19

CHIEF EXECUTIVE’S STATEMENT We continue to make very good progress on our HK$100 billion investment plan, with almost 60% of the plan now committed to new projects to drive our long-term growth in all our key markets. Dear shareholders, 2023 Financial Results at a Glance We are encouraged by the recovery we have seen across Our underlying profit increased by HK$2,864 million from several of our key businesses in 2023, following the lifting HK$8,706 million in 2022 to HK$11,570 million in 2023, of pandemic-related restrictions. Despite macro-economic which mainly reflected the gain on the disposal of nine and geopolitical uncertainties, we remain optimistic for our floors of One Island East in Hong Kong. Recurring business in the year ahead. underlying profit was HK$7,285 million in 2023, compared As the Chairman has outlined, we continue to make very with HK$7,176 million in 2022. good progress on our HK$100 billion investment plan, with Our recurring underlying profit from property investment almost 60% of the plan now committed to new projects to increased in 2023, due primarily to higher retail rental drive our long-term growth in all our key markets. income from Hong Kong and the Chinese Mainland, and Looking forward to 2024, we are advancing our ambitious partly offset by lower office rental income from Hong Kong. plans for Taikoo Place in Hong Kong as it continues its Our Hong Kong retail portfolio has recovered remarkably transformation into a Global Business District. In the well, with an improvement in consumer sentiment, thanks Chinese Mainland, our retail developments are landmarks to the lifting of all travel restrictions and pandemic related in their respective cities, and we are making good headway control measures. Our investment in marketing and loyalty with several new projects in the pipeline, including initiatives, together with digitally-advanced campaigns to Taikoo Li Xi’an, our retail complex in Sanya, two major interact with customers, have all contributed to significant mixed-use developments in Shanghai and INDIGO Phase business recovery in our malls in Hong Kong during the Two in Beijing. year. Sales have improved and returned to pre-pandemic We remain committed to achieving our SD 2030 goals. We levels in some of our malls. are participating in pioneering global initiatives to mitigate In Hong Kong, the office market remains weak, given climate and nature risks, and piloting new sustainability increased availability (due to vacancy and new supply), solutions across all our portfolios. We will continue to work and demand for office space remains subdued, reflecting closely with our business partners to advance our SD continued economic uncertainty and the high interest rate agenda, as we work towards our long term goal of net zero environment. Nevertheless, our office portfolio has emissions by 2050. We are also accelerating the digital remained resilient with solid occupancy, due to the high transformation of our business, and embracing new sustainability standards of our office buildings. Leasing technologies to keep pace with market developments. activity has picked up since the reopening of the borders, with increased requests for viewings. 20

SWIRE PROPERTIES ANNUAL REPORT 2023 In the Chinese Mainland, foot traffic has improved Admiralty, we have completed Six Pacific Place, which has a significantly and retail sales have exceeded pre-pandemic commitment rate of approximately 40%, and we obtained levels for most of our malls since pandemic-related the occupation permit for the tower in February 2024. restrictions were lifted. Our office portfolio has proven to be In the Chinese Mainland, sales figures strongly exceeded resilient despite a weak office market. pre-pandemic levels across most of our malls. In the wake We recorded a small underlying loss from our property of this robust recovery, we expect 2024 to be a year of trading activities in 2023 as a result of sales and marketing market stabilisation, and we continue to hold a positive expenses incurred for several residential trading projects. outlook in the medium to long term. We are encouraged by Our hotel business in Hong Kong and the Chinese Mainland the current trends in consumer spending and domestic recovered strongly following the lifting of travel restrictions travel, and expect to see a further boost in the year ahead. and the reopening of the borders. We are excited to be establishing a presence in two important cities in the Chinese Mainland – Xi’an, the Our Future Prospects ancient capital of China with immense historical and We have been encouraged by the strong recovery of our economic significance; and Sanya, which is emerging as malls in Hong Kong, and we expect that footfall and one of the most popular domestic travel retail destinations tenants’ sales will continue to improve despite economic in the country. We have also significantly expanded our uncertainties and a volatile stock market. With our strong footprint in Shanghai with two new large-scale, mixed-use marketing campaigns and attractive loyalty programme developments in the city’s Pudong New Area. With four initiatives, we anticipate that the sales momentum will projects now in operation and under development across continue in 2024. Shanghai, we are pleased to be launching our premium residential brand in the city while opening up the Chinese The office market in Hong Kong is expected to remain Mainland market for further opportunities. subdued in 2024, on the back of weak demand and We also hold a positive outlook on the long-term prospects increased availability. Increasing competition from Central for the Greater Bay Area, which is experiencing significant and Kowloon East will continue to exert downward pressure development momentum. We are actively exploring new on rents across our portfolio. However we expect our office opportunities in Shenzhen, with plans for a new, ultra- spaces, with their industry-leading ESG certifications and luxury hotel under The House Collective brand, and we excellent amenity provisions, will continue to benefit from have signed a Strategic Framework Cooperation the ‘flight-to-quality’ trend. Agreement with the Futian District Government to explore Assuming improvements in the financial markets, and an new prospects. increase in economic activity, we expect the demand for Looking at residential opportunities, the Hong Kong market Grade-A office space, particularly from financial institutions remains soft amidst economic uncertainties, and we expect and professional services companies, to recover. that market confidence may take some time to recover. We will reach a major milestone this year with the However, we anticipate demand to remain resilient in the completion of the current redevelopment phase of Taikoo medium to long term, due to local demand and limited Place. Our new Taikoo Square will be a unique showcase of supply. We launched our newest project on Hong Kong urban biodiversity, alongside increased connectivity via our Island, LA MONTAGNE with our joint venture partners in new elevated walkways, and outdoor dining amenities to 2023, and 52 units have been sold to date. serve our vibrant office community in Quarry Bay. In 21

CHIEF EXECUTIVE'S STATEMENT We are also actively looking to expand our residential 40-member Taskforce on TNFD, we are proud to have portfolio in South East Asia under our HK$100 billion plan. supported the creation of this pioneering disclosure We are focused on the four major cities of Jakarta in framework, which will help companies to integrate nature- Indonesia, Ho Chi Minh City in Vietnam, Bangkok in related considerations into their investment decisions and Thailand and Singapore, and expect these markets to business operations. remain stable in 2024, due to increased urbanisation and a Our work continues, and we are on track to achieve our limited supply of luxury residential properties. ambitious 1.5°C-aligned science-based targets. We remain We expect the performance of our hotels in Hong Kong and focused on collaborating closely with our business partners the Chinese Mainland to continue to improve with more through various programmes to meet shared sustainability international visitors in 2024. In September, we were goals. These include the Green Kitchen Initiative for F&B delighted to have The Upper House ranked fourth on The tenants in our retail portfolios, and our proprietary Green World’s 50 Best Hotels list, a remarkable achievement for Performance Pledge (“GPP”) programme for office tenants. Swire Hotels. Both programmes have received a strong positive response We are moving forward with the next phase of growth for from our tenants, achieving significant results in energy The House Collective and EAST brands, with several savings, improved water efficiency and water diversion exciting projects in the pipeline, including The House rates. In 2023 we launched the “GPP Academy”, Collective hotels in Tokyo, Shenzhen and Xi’an. We have a three-year collaboration with the Hong Kong Business also been making good progress with our asset-light, Environment Council (“BEC”) which will enable our office third-party management model as we explore potential tenants to share industry knowledge and best practices to new sites with suitable partners. improve their sustainability capabilities. We also became the first real estate company in Hong Collective Measures Towards Net Zero Kong and the Chinese Mainland to launch a supply chain We continue to focus on our pioneering sustainability work sustainability engagement programme, in partnership with and our commitment to building vibrant communities, in EcoVadis. Through this collaboration, we are empowering order to realise our vision to be the leading performer in our suppliers to improve their own ESG performance and our industry globally by 2030. increase resilience, working collectively towards the global net zero goal. As an industry leader, we are taking a holistic approach to mitigating climate-related risk, and reducing our carbon Taikoo Place: Sustainability in Action footprint. We continue to invest in innovative solutions for Now more than ever, it is crucial that we, as an industry, our future, and our achievements are being recognised take steps to minimise our impact on the environment. locally, regionally and globally, including our number two The redevelopment of Taikoo Place has been a showcase ranking in the Dow Jones Sustainability World Index 2023. of our work in sustainable building development, and the We are also pioneering new ground as an early adopter of next phase of this project will highlight our extensive work the Taskforce on Nature-related Financial Disclosures in biophilic design. (“TNFD”). As the only Hong Kong representative of the 22

SWIRE PROPERTIES ANNUAL REPORT 2023 Together with the Taikoo Garden, the new Taikoo Square The past year also saw the successful conclusion of the will span approximately 69,000 square feet of green open two-year “Bi-city Youth Cultural Leadership Programme”, space, which has been carefully cultivated to improve local our long-term partnership with The Hong Kong Palace biodiversity with over 100 mostly native plant species. Museum, which has helped to foster closer ties and cultural We are excited to open this new garden to the public, and exchange between students in Hong Kong and Beijing. hope that it will act as a catalyst to inspire others in the industry to integrate a nature-oriented mindset in their Outlook urban planning. With our strong financial position and robust pipeline of Supporting our Local Communities new projects, we are confident in our outlook for 2024. This is an exciting period for our business, and we will continue We are committed to creating a positive impact across to make strides with our investment strategy as we grow our business. 2023 was another remarkable year for our our presence in our core markets of Hong Kong, the Community Ambassadors, who have expanded their Chinese Mainland and South East Asia. community work to focus on wellness for patients and their We look forward to reaching major milestones in the caregivers. In October, the team partnered with medical year ahead, including the unveiling of the next phase experts at Hong Kong University Stroke to host the in the redevelopment of our Taikoo Place as a Global “Together We Care for Stroke” exhibition at Cityplaza, Business District. which helped to raise awareness of stroke prevention and provided free health check-ups for the public. They also Our achievements this year would not have been possible launched the one-year “Care for our Carers” project in without the inspiring efforts of our colleagues. They remain collaboration with the YWCA, to provide much-needed critical to realising our SD 2030 targets and to our overall support to caregivers. These are just some of the important success. Looking ahead to 2024 and beyond, we will initiatives which the team has hosted this year. We are continue to prioritise our people, with new initiatives immensely proud of all their efforts. including training and development opportunities to The launch of Quarryside in 2023 has also had a catalytic support them as we enter a new phase of growth for effect on the Quarry Bay community. The new space has our business. I would like to thank our talented team at rapidly become a vibrant community hub, with over 200 Swire Properties for making this a memorable year, as well events hosted since its opening in July 2023. Looking as our shareholders, partners and the community for your ahead, we hope to further utilise the space for more ongoing support. community-led events in the district. Empowering youth remains a key priority for our Tim Blackburn community work. In 2023 we continued the Swire Chief Executive Properties Placemaking Academy (“SPPA”), which saw Hong Kong, 14th March 2024 10 university students design our White Christmas Street Fair under the mentorship of leading industry figures and our own senior management team. We also launched the inaugural Placemaking Academy Junior Programme for secondary students, a collaboration with the E-League of the Eastern District Office of the Home Affairs Department. 23

KEY BUSINESS STRATEGIES As a leading developer, owner and operator of mixed-use, principally commercial, properties in Hong Kong and the Chinese Mainland, our strategic objective is sustainable growth in shareholder value in the long term. To achieve this objective, we employ five strategies. 1. Create long-term value by conceiving, with a view to the long term, to maintain consistently designing, developing, owning and high levels of service and to enhance and reinforce managing transformational mixed-use our assets. By doing so, we believe that we will and other projects in urban areas maximise the occupancy and earnings potential of our properties. We will continue to design projects which we believe Tenants increasingly scrutinise the sustainable will have the necessary scale, mix of uses and transport development credentials of landlords and buildings. links to become key commercial destinations and to We aim to be at the forefront of sustainable transform the areas in which they are situated. development by designing energy efficient buildings through the innovative use of design, materials and 2. Maximise the earnings and value of our new technology, and by engagement with tenants and completed properties through active others with whom we do business. asset management and by reinforcing 3. Develop luxury and high quality our assets through enhancement, residential property activities redevelopment and new additions We manage our completed properties actively We will look to acquire appropriate sites for (including by optimising the mix of retail tenants and development of luxury and high quality residential early renewal negotiations with office tenants) and projects for trading and investment in the markets in which we operate. 24

SWIRE PROPERTIES ANNUAL REPORT 2023 4. Focus principally on Hong Kong and the While we will continue to concentrate on Hong Kong Chinese Mainland and the Chinese Mainland, we intend to expand selectively in South East Asia. In Hong Kong, we will continue to focus on reinforcing our existing investment property assets and on seeking 5. Manage our capital base conservatively new sites suitable for transformative developments We intend to maintain a strong balance sheet with a and for residential projects. view to investing in and financing our projects in a We aim to replicate in the Chinese Mainland our disciplined and targeted manner. success in Hong Kong. We intend to take a measured We aim to maintain exposure to a range of debt approach to land purchases in the Chinese Mainland maturities and a range of debt types and lenders. Our and will focus on developments where we can secure current debt profile reflects a mix of revolving and term sites through early engagement with local bank loans and medium term notes. governments who recognise our strengths in developing large-scale mixed-use projects. In implementing the above strategies, the principal risks We will seek residential development opportunities in and uncertainties facing the Group are that the economies the Chinese Mainland. These are likely to be ancillary in which it operates (in particular Hong Kong and the to our mixed-use developments. However, in the right Chinese Mainland) will not perform as well in the future as locations and cities we may also consider standalone they have in the past and the uncertainties as to whether residential development opportunities. Our residential this will happen. developments will be aimed at buyers of luxury and high quality properties, where we believe we have a competitive advantage. 25

MANAGEMENT DISCUSSION & ANALYSIS

TWO TAIKOO PLACE, HONG KONG

REVIEW OF OPERATIONS 2023 2022 HK$M HK$M Revenue Gross Rental Income derived from Office 5,835 6,003 Retail 7,143 5,849 Residential 430 374 (1) Other Revenue 117 114 Property Investment 13,525 12,340 Property Trading 166 921 Hotels 979 565 Total Revenue 14,670 13,826 Operating Profit/(Losses) derived from Property investment From operations 8,261 7,702 Sale of interests in investment properties (60) 571 Fair value (losses)/gains in respect of investment properties (2,829) 801 Property trading (89) 209 Hotels (103) (259) Total Operating Profit 5,180 9,024 Share of Post-tax (Losses)/Profit from Joint Venture and Associated Companies (292) 1,455 Profit Attributable to the Company’s Shareholders 2,637 7,980 (1) Other revenue is mainly estate management fees. 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 fair value 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 Chinese Mainland, the Group’s investment properties recorded fair value losses of HK$3,638 million and HK$920 million respectively in 2023. In the U.S.A., investment properties recorded fair value gain of HK$166 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. 28

SWIRE PROPERTIES ANNUAL REPORT 2023 2023 2022 Underlying Profit Reconciliation Note HK$M HK$M Profit Attributable to the Company’s Shareholders per Financial Statements 2,637 7,980 Adjustments in respect of investment properties: Fair value losses/(gains) in respect of investment properties (a) 4,392 (1,726) Deferred tax on investment properties (b) 461 1,402 Fair value gains realised on sale of interests in investment properties (c) 4,398 915 Depreciation of investment properties occupied by the Group (d) 22 22 Non-controlling interests’ share of fair value movements less deferred tax 8 144 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) 39 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) (81) (80) Underlying Profit Attributable to the Company’s Shareholders 11,570 8,706 Profit from divestment (4,285) (1,530) Recurring Underlying Profit Attributable to the Company’s Shareholders 7,285 7,176 Notes: (a) This represents the fair value movements as shown in the Group’s consolidated statement of profit or loss and the Group’s share of fair value movements of joint venture and associated 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 and associated companies. These comprise deferred tax on fair value 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 fair value 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. 29

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Underlying Profit Movement in HK$M Underlying Profit 12,000 +116 -248 11,570 +2,755 +241 10,000 8,706 8,000 Underlying profit Increase in losses in 2022 from property 6,000 trading Increase in profit Decrease in losses 4,000 from divestment from hotels Increase in profit Underlying profit 2,000 from property in 2023 investment 0 2023 2022 Our reported profit attributable to shareholders in 2023 was In Hong Kong, the retail portfolio has significantly HK$2,637 million, compared to a profit of HK$7,980 million recovered, following the lifting of all travel restrictions and in 2022. There was a fair value loss on investment pandemic related control measures, together with the properties (after deducting non-controlling interests) of investment in marketing, digital and loyalty initiatives. HK$4,401 million in 2023, compared with a fair value gain Despite a weak office market (reflecting subdued demand on investment properties (after deducting non-controlling and increased supply), the office portfolio in Hong Kong interests) of HK$1,573 million in 2022, principally due to has proved to be resilient with solid occupancy, as a result the decrease in the fair value gain on the retail investment of the high sustainability standards of the office buildings. properties in the Chinese Mainland and the fair value loss In the Chinese Mainland, foot traffic improved significantly on the investment properties under development (as and retail sales strongly exceeded pre-pandemic levels opposed to a fair value gain for 2022). for most of our malls, after the COVID-19 associated Underlying profit attributable to shareholders (which restrictions were lifted. principally adjusts for changes in fair value of investment In the U.S.A., retail sales and gross rental income were properties) increased by HK$2,864 million from HK$8,706 strong. million in 2022 to HK$11,570 million in 2023. The increase The small underlying loss from property trading in 2023 principally reflected the profit on disposal of certain office was primarily a result of sales and marketing expenses floors in Hong Kong. incurred for several residential trading projects. Recurring underlying profit (which excludes the profit from The hotel businesses in Hong Kong and the Chinese divestment) was HK$7,285 million in 2023, compared with Mainland recovered strongly following the lifting of HK$7,176 million in 2022. COVID-19 measures and the full reopening of the border. Recurring underlying profit from property investment There was solid performance in the U.S.A. hotels. increased in 2023. This mainly reflected higher retail rental income from Hong Kong and the Chinese Mainland, partly offset by lower office rental income from Hong Kong. 30

SWIRE PROPERTIES ANNUAL REPORT 2023 Valuation of HK$M Investment Properties 300,000 250,000 200,000 150,000 Completed 100,000 Under development 50,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gross Rental Income HK$M (After Deduction of 14,000 Rental Concessions) 12,000 10,000 Hong Kong Chinese 8,000 office Mainland 6,000 Hong Kong U.S.A. and retail elsewhere 4,000 Hong Kong 2,000 residential 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Underlying HK$M Operating Profit 27,000 24,000 21,000 18,000 15,000 12,000 Property Hotels 9,000 investment 6,000 3,000 Property Divestment 0 trading -3,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 31

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Attributable GFA Completed Investment (000 sq. ft.) Property and Hotel 35,000 Portfolio by Location 30,000 25,000 Hong Kong 20,000 15,000 Chinese Mainland 10,000 U.S.A. 5,000 0 2023 2024 2025 2026 2027 2028 2029 2030 and later Attributable GFA Completed Investment (000 sq. ft.) Property and Hotel 35,000 Portfolio by Type 30,000 25,000 20,000 15,000 Office Hotels/Residential/ Serviced apartments 10,000 Retail Under planning 5,000 0 2023 2024 2025 2026 2027 2028 2029 2030 and later HK$100 Billion Commitment for new projects Investment Plan 58% COMMITTED Hong Kong Chinese Mainland Committed Residential trading projects (including in Remaining target South East Asia) 0 10 20 30 40 50 Target (HK$ Bn) 32

SWIRE PROPERTIES ANNUAL REPORT 2023 In March 2022, the Company announced a plan to invest In February 2023, the Group acquired a 40% interest in a HK$100 billion over ten years in development projects in site located on Wireless Road in Lumphini sub-district in Hong Kong and the Chinese Mainland and in residential Pathum Wan district, Bangkok for a consideration of trading projects (including in South East Asia). The target approximately THB2.4 billion. In partnership with City allocation is HK$30 billion to Hong Kong, HK$50 billion to Realty Co. Ltd., the site is expected to be developed for the Chinese Mainland and HK$20 billion to residential residential use with a site area of approximately 136,000 trading projects (including in South East Asia). At 8th square feet. March 2024 approximately HK$58 billion of the planned In June 2023, the Group announced plans to develop a investments had been committed (HK$11 billion to luxury residential and hospitality project in Miami, which Hong Kong, HK$37 billion to the Chinese Mainland and will include the redevelopment of the existing Mandarin HK$10 billion to residential trading projects). Major Oriental Miami hotel. The project, which has been branded committed projects are residential developments at Chai as The Residences at The Mandarin Oriental, Miami, will Wan Inland Lot No. 178, at 269 Queen’s Road East, at consist of two towers at the southernmost point of Brickell 983-987A King’s Road and 16-94 Pan Hoi Street in Hong Key. The first tower will comprise luxury private residences Kong, and at Wireless Road in Bangkok, a retail-led mixed- managed by Mandarin Oriental. The second tower will use development in Xi’an, a retail-led development in comprise a new Mandarin Oriental hotel as well as private Sanya, mixed-use developments in the Yangjing and residences and hotel residences. Sales reservations were New Bund in Shanghai, office and other commercial use launched in December 2023. developments at 8 Shipyard Lane and at 1067 King’s Road in Hong Kong. Uncommitted projects include further In July 2023, the Group obtained full ownership of Wah Ha retail-led mixed-use projects in Tier 1 and emerging Tier 1 Factory Building in Quarry Bay, Hong Kong. Together with cities in the Chinese Mainland, including Guangzhou and the adjacent wholly-owned Zung Fu Industrial Building, Beijing, with a plan to double our gross floor area in the the two sites are intended to be redeveloped for office and Chinese Mainland, further expansion at Pacific Place and other commercial uses. Taikoo Place in Hong Kong as well as further residential In July 2023, a joint venture company in which the Group trading projects in Hong Kong, the Chinese Mainland, holds a 25% interest started the pre-sales of LA Miami and South East Asia. MONTAGNE, a residential development in Wong Chuk Key Developments Hang, Hong Kong. Superstructure works of the development are in progress. In December 2022, the Group entered into three In September 2023, the Group successfully bid and entered conditional agreements with the Sino-Ocean group to into equity transfer agreements to acquire a 40% equity acquire further interests in Taikoo Li Chengdu (formerly interest in each of the Shanghai Yangjing Mixed-use Project known as Sino-Ocean Taikoo Li Chengdu). Under the first and the Shanghai New Bund Mixed-use Project, from agreement (which was completed in December 2022), Shanghai Lujiazui Group Co., Ltd and Shanghai Qiantan the Group’s interest in Taikoo Li Chengdu increased from International Commercial Area Investment Group Co., Ltd 50% to 65%. Under the second agreement (which was (“Lujiazui Group”), respectively. The consideration was completed in February 2023), the Group’s interest in the RMB6,594 million for the Shanghai Yangjing Mixed-use property management of Taikoo Li Chengdu increased to Project and RMB3,116 million for the Shanghai New Bund 100%. Under the third agreement (which was completed in Mixed-use Project. The two sites will be developed into February 2023), the Group’s interest in the investment large-scale, mixed-use projects, including retail, office and properties of Taikoo Li Chengdu increased to 100%. premium residential components. The Yangjing and The consideration was RMB1,000 million under the first New Bund projects have an expected gross floor area of agreement, RMB59 million under the second agreement approximately 4,200,000 and 4,100,000 square feet and RMB4,491 million under the third agreement. respectively. The transactions were completed in November 2023. 33

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS In October 2023, a joint venture company in which the Portfolio Overview Group holds a 50% interest obtained full ownership of The aggregate gross floor area (“GFA”) attributable the sites in 983-987A King’s Road and 16-94 Pan Hoi to the Group at 31st December 2023 was approximately Street in Quarry Bay. The sites are intended to be 39.1 million square feet. redeveloped for residential and retail uses. In November 2023, the Group entered into agreements Of the aggregate GFA attributable to the Group, for the sale of twelve office floors (42nd to 54th floors approximately 34.4 million square feet are investment excluding the 49th floor) at One Island East in Quarry properties and hotels, comprising completed investment Bay, Hong Kong to the Securities and Futures properties and hotels of approximately 24.4 million square Commission (“SFC”) for a total consideration of HK$5.4 feet and investment properties under development or held billion. The completion of the sale of the nine floors for future development of approximately 10.0 million (45th to 54th floors excluding the 49th floor) currently square feet. In Hong Kong, the investment property and occupied by SFC took effect in December 2023. The hotel portfolio comprise approximately 14.2 million square completion for the 43rd floor will take place not earlier feet attributable to the Group of primarily Grade-A office than 31st December 2025 and not later than 31st and retail premises, hotels, serviced apartments and other December 2026 while the completion for the 44th floor luxury residential accommodation. In the Chinese will take place not earlier than 31st December 2026 and Mainland, the Group has interests in ten major commercial not later than 31st December 2027, and the completion developments in prime locations in Beijing, Guangzhou, for the 42nd floor will take place not earlier than 31st Chengdu, Shanghai, Xi’an and Sanya. These developments December 2027 and not later than 31st December 2028. are expected to comprise approximately 18.1 million The total GFA of the twelve floors is approximately square feet of attributable GFA when they are all 300,000 square feet. completed. Of this, 10.6 million square feet has already been completed. Outside of Hong Kong and the Chinese In February 2024, the Group obtained the occupation Mainland, the investment property portfolio comprises the permit for Six Pacific Place. Six Pacific Place, the newest Brickell City Centre development in Miami, U.S.A. addition to Pacific Place, is an office tower with an The tables below illustrate the GFA (or expected GFA) aggregate GFA of approximately 223,000 square feet. attributable to the Group of the investment property and hotel portfolio at 31st December 2023. Completed Investment Properties and Hotels (GFA attributable to the Group in million square feet) Residential/ Serviced Under Office Retail Hotels(1) Apartments Planning Total Hong Kong 9.2 2.6 0.8 0.6 – 13.2 Chinese Mainland 2.9 6.2 1.3 0.2 – 10.6 U.S.A. – 0.3 0.3 – – 0.6 Total 12.1 9.1 2.4 0.8 – 24.4 34

SWIRE PROPERTIES ANNUAL REPORT 2023 Investment Properties and Hotels Under Development or Held for Future Development (expected GFA attributable to the Group in million square feet) Residential/ Serviced Under Office Retail Hotels(1) Apartments Planning Total Hong Kong 0.2 – – – 0.8 1.0 Chinese Mainland 1.6 2.1 0.1 – 3.7 7.5 (2) U.S.A. – – – – 1.5 1.5 Total 1.8 2.1 0.1 – 6.0 10.0 Total Investment Properties and Hotels (GFA (or expected GFA) attributable to the Group in million square feet) Residential/ Serviced Under Office Retail Hotels(1) Apartments Planning Total Total 13.9 11.2 2.5 0.8 6.0 34.4 (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 nine residential projects under development, four in Hong Kong, two in the Chinese Mainland, one in Indonesia, one in Vietnam and one in Thailand. There is also a plan to develop a residential project on part of our 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 31st December 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 1.1 1.1 Chinese Mainland – 0.5 0.5 U.S.A. and elsewhere 0.0 3.1 3.1 Total 0.0 4.7 4.7 (1) Completed development in Hong Kong comprises EIGHT STAR STREET and completed development in U.S.A. and elsewhere comprises The River in Vietnam. 35

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS 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 3% 2% Properties GFA (Excl. Hotels) Hong Kong 43% 54% 40% 58% Chinese Mainland U.S.A. 31st December 2023 31st December 2022 Attributable Gross 2% 2% Rental Income Hong Kong 40% 37% 58% 61% Chinese Mainland U.S.A. Year ended 31st December 2023 Year ended 31st December 2022 Net Assets 3% 2% Employed 23% 19% Hong Kong 74% 79% Chinese Mainland U.S.A. and elsewhere 31st December 2023 31st December 2022 36

SWIRE PROPERTIES ANNUAL REPORT 2023 Investment Properties – Hong Kong Offices Overview The completed office portfolio in Hong Kong comprises an aggregate of 9.8 million square feet of space on a 100% basis. Total attributable gross rental income from our office properties in Hong Kong was HK$5,772 million in 2023. At 31st December 2023, our office properties, completed and under development, in Hong Kong were valued at HK$181,947 million. Of this amount, the Company’s attributable interest was HK$172,469 million. Hong Kong Office Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 31st December 2023) Interest Pacific Place 2,186,433 98% 100% (1) and Taikoo Place – One Island East One Taikoo Place 2,322,772 93% 100% Taikoo Place – Two Taikoo Place 994,545 62% 100% (2) 3,122,431 90% 50%/100% Taikoo Place – Other Office Towers (3) 1,158,595 86% 26.67%/50%/100% Others Total 9,784,776 (1) Excluding the 45th to 54th floors (except for the 49th floor) disposed of. (2) Including PCCW Tower, of which the Group owns 50%. (3) 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 2023 was HK$5,466 million, 2% lower than in 2022. Demand remained subdued reflecting continued economic uncertainty and the high interest rate environment. Office rental remained under pressure 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 continue to leverage on our placemaking attributes including health and wellness, amenity provision and our ESG credentials. At 31st December 2023, the office portfolio was 89% let. Excluding Two Taikoo Place (which was completed in September 2022), the office portfolio was 93% 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 31st December 2023. Office Area by Tenants’ Businesses 10.9% (At 31st December 2023) 0.6% 7.6% 26.9% Banking/Finance/ Professional services Real estate/Construction/ Securities/Investment (Accounting/Legal/ Property development/ Management consulting/ Architecture 8.8% Trading Corporate secretarial) Advertising and Insurance public relations Others 9.9% Technology/ 19.5% Media/Telecoms 15.8% 37

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS PACIFIC PLACE HONG KONG At 31st December 2023, the top ten office tenants (based At Six Pacific Place, tenants have committed (including on attributable gross rental income in the twelve months by way of letters of intent) to take approximately 40% ended 31st December 2023) together occupied of the space at 31st December 2023. Occupation permit approximately 21% of the Group’s total attributable office has been obtained in February 2024. Sotheby’s, area in Hong Kong. Pinebridge, British-American Tobacco and Maison Pacific Place Kayser agreed to lease spaces. The performance of the offices at One, Two, and Three Taikoo Place Pacific Place was resilient in 2023. These offices were 98% The performance of One Taikoo Place and One Island let at 31st December 2023. Standard Chartered Bank, ABN East (excluding the nine floors disposed of) at Taikoo Amro, Hong Kong Investment Corporation, FWD Life Place was resilient. These two offices towers were 98% Insurance, TF International Securities, Edrington, Asia and 89% let respectively at 31st December 2023. In Energy Logistics Group, Global Energy Corporation and Stat One Island East, CITIC Securities, Freshfields, SK hynix, Lab became tenants. CITIC Securities and NH Investment Tiffany & Co., Viatris and Zurich renewed their leases. Securities leased more spaces. Sino-Ocean, Guosen Meanwhile in One Taikoo Place, Spitalfields and Securities, Jason Pow Chambers, Poly Auction, Weihong Stephenson Harwood became tenants, and RPC Investment, Industrial Bank of Korea, Parkside Chambers, relocated within the same building. CTI Capital, Volant Trading and CDB Aviation renewed their leases. SAIF and Fidelity confirmed their relocation within the same portfolio upon the lease expiry. 38

SWIRE PROPERTIES ANNUAL REPORT 2023 Two Taikoo Place was 62% leased. Accounting and Hong Kong Office Market Outlook Financial Reporting Council, Neo Derm and Sumitomo The office market in Hong Kong is expected to remain Mitsui Banking Corporation became tenants. subdued in 2024, on the back of weak demand and There are six other office towers at Taikoo Place increased availability. Increasing competition from (including PCCW Tower, in which we have a 50% Central and Kowloon East will continue to exert interest). These offices were 90% let at 31st December downward pressure on rents across the portfolio. The 2023. Azeus Systems, China Road & Bridge Corporation, ‘flight-to-quality’ trend is expected to benefit the Group, EC Healthcare, GO24, GP Asset Settlement Services, as prospective tenants upgrade their offices and place a Radiance Sea, AXA XL Insurance and YNBY Hong Kong higher value on sustainability as well as the health and became tenants. AlphaSights, DFI Retail Group, and FWD wellness of their workforce. Assuming improvements in leased more space, while Dr. Steven Chung, Mars, and the financial markets, stabilisation of interest rate and an Zuellig Pharma relocated within the same portfolio. ANZ, increase in economic activity, the demand for Grade-A Balenciaga, Baxter, Boston Scientific Hong Kong, Canali, office space, particularly from financial institutions and China Airlines, Coca-Cola China, Crestron, Dell, ELEVATE, professional services companies, should recover. Excellent Management, Extrawell Pharmaceutical, Gucci, The following chart shows the percentage of attributable JobsDB, McDonald’s, Mox Bank, NetApp, Priority Pass, gross rental income from the office properties in Hong RGA Reinsurance Company, Vodafone, Western Digital Kong, for the month ended 31st December 2023, derived and Wong & Ouyang (HK) renewed their leases. from leases expiring in the periods with no committed South Island Place renewals or new lettings. Tenancies accounting for approximately 15.2% of the attributable gross rental The offices were 88% let at 31st December 2023. Tenants income in the month of December 2023 are due to include KPMG, Fleet Management Limited, the expire in 2024, with tenancies accounting for a further Competition Commission and SCMP. The Group has a 19.1% of such rental income due to expire in 2025. 50% interest in the development. Office Lease Expiry Profile 70% (At 31st December 2023) 60% 50% 40% 30% 20% 10% 0 2024 2025 2026 and later 39

MANAGEMENT DISCUSSION & ANALYSIS 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 grew by 14%, to HK$2,638 million in 2023. Disregarding rental concessions, total attributable gross rental income increased by 6%. At 31st December 2023, our retail properties in Hong Kong were valued at HK$53,214 million. Of this amount, the Group’s attributable interest was HK$44,250 million. The portfolio principally consists of The Mall at Pacific Place, Cityplaza at Taikoo Shing and Citygate Outlets at Tung Chung. The Group wholly owns The Mall and Cityplaza, and has 26.67% interest in the Citygate development (comprising Citygate Outlets). The malls are managed by the Group. Hong Kong Retail Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 31st December 2023) Interest The Mall, Pacific Place 711,182 96% 100% Cityplaza 1,096,898 100% 100% Citygate Outlets 803,582 100% 26.67% (1) Others 549,558 100% 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 However, we remain confident that the sales momentum in was HK$2,453 million in 2023, a 13% increase from 2022. Hong Kong retail business will continue in 2024. Retail sales Disregarding rental concessions, gross rental income in 2023 increased by 44% at The Mall, Pacific Place, by 43% increased by 5%. Following the lifting of all travel at Citygate Outlets, and by 6% at Cityplaza. Retail sales in restrictions and COVID-19 related measures, and with the Hong Kong as a whole increased by 16% in 2023. investment in marketing, digital and loyalty initiatives, the The malls were almost fully let throughout the year. Hong Kong retail portfolio has recovered significantly in 2023. Sales have returned to pre-pandemic levels in some The chart below shows the mix of the tenants of the retail of our malls. There are still factors such as a strong US properties by the principal nature of their businesses currency, a rebound in outbound travel and a high interest (based on internal classifications) as a percentage of the rate environment which might affect local consumptions. retail area at 31st December 2023. Retail Area by Tenants’ Businesses (At 31st December 2023) 24.3% 28.3% Fashion and Department Jewellery accessories stores and watches 0.9% Food and Supermarkets Ice rink 1.9% beverages 4.2% Cinemas Others 5.1% 20.7% 14.6% 40

SWIRE PROPERTIES ANNUAL REPORT 2023 CITYPLAZA HONG KONG At 31st December 2023, the top ten retail tenants (based Cityplaza on attributable gross rental income in the twelve months Cityplaza is the largest shopping mall on Hong Kong Island, ended 31st December 2023) together occupied with a total floor area of approximately 1.1 million square approximately 26% of the Group’s total attributable retail feet. The six-level mall has more than 170 shops and area in Hong Kong. restaurants, a cinema, an indoor ice rink and over 800 The Mall at Pacific Place indoor parking spaces. Continued improvements to the tenant mix, promotions and activities in the mall make it an The Mall at Pacific Place is in the mixed-use Pacific Place attractive place to shop, eat and be entertained. development. The offices and the four hotels at Pacific Cityplaza was fully let throughout 2023 despite the retail Place provide a flow of shoppers for The Mall. market continued to be competitive due to the increasing The Mall was almost fully let during the year. Despite a outbound travel. New tenants were introduced including more competitive retail environment, enhancement to the Champion, Clarins, Clémence by RUE MADAME, retail tenant mix continued. New and experiential retail COMEBUYTEA, Fresh, La Famille, LeSportsac, Lovisa, brands were introduced. Aigle, Amante, APM Monaco, Mellow Brown Coffee by UCC, Pop Mart, Tea WG, Tian Tian Blancpain, Boutique by The Grand, Fleuria, Maje and Authentic and THE MATCHA TOKYO. Carnival, the new food Simply Toys became tenants. Louis Vuitton and Tiffany & hall and Sushi Taka, a Japanese restaurant, were opened in Co. had expansion. The premises occupied by Apinara Thai January 2023. Penna, a casual Italian dining restaurant was Cuisine and Bar, Balmain Paris, Brooks Brothers, Caviar opened in July. IKEA was opened in August and has House, JOYCE Beauty, MAX&Co. and Theory were refitted. introduced “Tai Koo Plan and Order Point” and Swedish bistro on ground floor. APiTA completed its last phase of renovation on basement floor by December 2023. 41

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Citygate Outlets Hong Kong Retail Market Outlook Citygate Outlets is the largest premium outlet mall in It is expected that footfall and tenants’ sales in Hong Kong Hong Kong with approximately 200 shops and restaurants, will continue to improve despite uncertainty over economic and with two hotels. It is near tourist attractions and environment, outbound travel and volatile stock market. transportation links (Hong Kong International Airport and With our strong marketing campaigns and loyalty the Hong Kong-Zhuhai-Macao Bridge) which appeals to programme initiatives, it is anticipated that the sales both local shoppers and tourists. momentum will carry on. The mall was fully let in 2023. With the recovery of market The following chart shows the percentage of attributable sentiment, 14 new brands, including food and beverage gross rental income from the retail properties in Hong outlets, were introduced. These outlets include Alice and Kong, for the month ended 31st December 2023, derived Olivia by Stacey Bendet, Bossini, Diesel, eslite bookstore, from leases expiring in the periods with no committed Go Wild, lululemon, Luxba Fashion Outlet, Marni, renewals or new lettings. Tenancies accounting for Marimekko, Moody Tiger and Sam Edelman. Watami group approximately 28.2% of the attributable gross rental has brought two new concept restaurants namely Firebird income in the month of December 2023 are due to expire in Japanese Grill & Bar and Tsujijan. Meet Fresh was opened 2024, with tenancies accounting for a further 24.5% of such by December 2023. rental income due to expire in 2025. Retail Lease Expiry Profile 50% (At 31st December 2023) 40% 30% 20% 10% 0 2024 2025 2026 and later 42

SWIRE PROPERTIES ANNUAL REPORT 2023 Residential Taikoo Shing Car Parking Spaces The completed residential portfolio comprises Pacific Place Since November 2020, the Group has offered 2,530 car Apartments at Pacific Place, EAST Residences in Quarry parking spaces in the Taikoo Shing residential development Bay, STAR STUDIOS in Wan Chai and a number of luxury in Hong Kong for sale. 2,521 of these car parking spaces houses on Hong Kong Island and Lantau Island, with an had been sold at 8th March 2024. Sales of 2,146 car parking aggregate GFA of approximately 0.6 million square feet. spaces had been recognised at 31st December 2023, 694 of The residential portfolio was 78% let at 31st December them in 2023. Sales of 375 car parking spaces are expected 2023. Demand for our residential investment properties to be recognised in 2024. has been boosted by tenants arriving from the Chinese One Island East, 18 Westlands Road Mainland under various talent admission schemes and In November 2023, the Group entered into agreements from overseas by staying in Hong Kong for business after for the sale of twelve office floors (42nd to 54th floors the reopening of the border. excluding the 49th floor) at One Island East in Quarry Bay Investment Properties Under Development to SFC. The completion of the sale of the nine floors Wah Ha Factory Building, 8 Shipyard Lane and (45th to 54th floors excluding the 49th floor) currently Zung Fu Industrial Building, 1067 King’s Road occupied by SFC took effect in December 2023. The completion for the 43rd floor will take place not earlier than In 2018, the Group submitted compulsory sale applications 31st December 2025 and not later than 31st December in respect of these two sites in Quarry Bay. The Group 2026 while the completion for the 44th floor will take place obtained full ownership of Zung Fu Industrial Building and not earlier than 31st December 2026 and not later than Wah Ha Factory Building in March 2022 and July 2023, 31st December 2027, and the completion for the 42nd floor respectively. The two sites are intended to be redeveloped will take place not earlier than 31st December 2027 and for office and other commercial uses with an aggregate not later than 31st December 2028. The total GFA of the GFA of approximately 779,000 square feet. twelve floors is approximately 300,000 square feet. Others 9-39 Hoi Wan Street and 33-41 Tong Chong Street In June 2022, the Group submitted a compulsory sale application in respect of this site in Quarry Bay. The gross site area is approximately 20,060 square feet. Proceeding with the development (the planning of which is being reviewed) is subject to the Group having successfully bid in the compulsory sale. 43

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Investment Properties – Chinese Mainland Overview The property portfolio in the Chinese Mainland comprises an aggregate of 30.5 million square feet of space, 18.1 million square feet of which is attributable to the Group. Completed properties amount to 14.1 million square feet, with 16.4 million square feet under development. Total attributable gross rental income from investment properties in the Chinese Mainland was HK$6,045 million in 2023. At 31st December 2023, the investment properties in the Chinese Mainland were valued at HK$132,090 million. Of this amount, the Group’s attributable interest was HK$88,005 million. (1) Chinese Mainland Property Portfolio GFA (sq. ft.) (100% Basis) Investment Under Attributable Total Properties Hotels Planning Interest Completed Taikoo Li Sanlitun, Beijing 1,792,309 1,622,846 169,463 – 100% Taikoo Li Chengdu (2) 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 14,137,797 12,330,879 1,806,918 – Under Development (3) INDIGO Phase Two, Beijing 4,045,514 3,698,711 346,803 – 35% Taikoo Li Xi’an (4) 2,936,376 – – 2,936,376 70% Sanya (5) 2,233,401 2,233,401 – – 50% Shanghai New Bund Mixed-use Project(6) 2,980,380 2,980,380 – – 40% Shanghai Yangjing Mixed-use Project(7) 4,181,136 – – 4,181,136 40% Sub-Total 16,376,807 8,912,492 346,803 7,117,512 Total 30,514,604 21,243,371 2,153,721 7,117,512 (1) Including hotels and properties leased for investment. (2) The Group acquired the remaining 35% interest in Sino-Ocean Taikoo Li Chengdu in February 2023, and renamed it as Taikoo Li Chengdu in 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 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 2026. (5) This is a retail-led development. The development is planned to be completed in phases from late 2025. (6) This is a mixed-use development. The development is planned to be completed from 2025. (7) This is a mixed-use development including residential portion for trading. The development scheme is being planned. The development is planned to be completed in phases from 2027. 44

SWIRE PROPERTIES ANNUAL REPORT 2023 Gross rental income from the Group’s investment property properties in the Chinese Mainland increased by 20%, to portfolio in the Chinese Mainland was HK$4,593 million in HK$5,101 million, in 2023. Disregarding rental concessions 2023, 38% higher than in 2022, reflecting the recovery from and changes in the value of the Renminbi, total COVID-19, the improvement to tenant mix in the cities attributable gross rental income also increased by 20%. where our malls operate and share of incremental rental At 31st December 2023, our completed retail properties income arising from the acquisitions of additional interests in the Chinese Mainland were valued at HK$67,437 million. in Taikoo Li Chengdu during 2023. Of this amount, the Group’s attributable interest was HK$56,707 million. Retail The portfolio consists of Taikoo Li Sanlitun in Beijing, Taikoo The completed retail portfolio in the Chinese Mainland Li Chengdu and Hui Fang in Guangzhou, which are wholly- comprises an aggregate of 7.8 million square feet of space, owned by the Group, Taikoo Hui in Guangzhou, which is 6.2 million square feet of which is attributable to the Group. 97% owned, INDIGO in Beijing, HKRI Taikoo Hui and Taikoo Total attributable gross rental income from our retail Li Qiantan in Shanghai, each of which is 50% owned. Chinese Mainland Completed Retail Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 31st December 2023) Interest (1) Taikoo Li Sanlitun, Beijing 1,622,846 94% 100% (2) Taikoo Li Chengdu 1,354,624 97% 100% Taikoo Hui, Guangzhou 1,529,392 100% 97% INDIGO, Beijing 946,769 99% 50% HKRI Taikoo Hui, Shanghai 1,107,220 93% 50% Taikoo Li Qiantan, Shanghai 1,188,727 98% 50% Hui Fang, Guangzhou 90,847 100% 100% Total 7,840,425 (1) Including spaces allocated to prospective tenants who have signed letters of intent. (2) The Group acquired the remaining 35% interest in Sino-Ocean Taikoo Li Chengdu in February 2023, and renamed it as Taikoo Li Chengdu in 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 most of our malls, following the lifting of COVID-19 related restrictions. Our retail sales (excluding sales by vehicle retailers) in the Chinese Mainland increased on an attributable basis by 46% in 2023. Retail sales in Taikoo Li Sanlitun in Beijing, Taikoo Li Chengdu, Taikoo Hui in Guangzhou, INDIGO in Beijing, HKRI Taikoo Hui and Taikoo Li Qiantan in Shanghai increased by 31%, 33%, 15%, 27%, 29% and 79%, respectively in 2023. Retail sales in the Chinese Mainland market as a whole increased by 7%. The Group’s gross rental income from retail properties in the Chinese Mainland increased by 42%, to HK$4,191 million, in 2023. Disregarding rental concessions and changes in the value of the Renminbi, gross rental income increased by 45%. 45

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS 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 31st December 2023. Retail Area by Tenants’ Businesses (At 31st December 2023) 19.4% Fashion and Cinemas 3.3% accessories 44.7% 3.6% Food and Jewellery 5.1% beverages and watches Supermarkets Others 23.9% At 31st December 2023, the top ten retail tenants (based tenants in Taikoo Li Sanlitun West includes DESCENTE on attributable gross rental income in the twelve months Kinetic Lab Global Experience Centre, Nike Rise and Uniqlo ended 31st December 2023) together occupied Global Sanlitun Flagship Store. A footbridge connecting approximately 23% of the Group’s total attributable retail Taikoo Li Sanlitun South and Taikoo Li Sanlitun West was area in the Chinese Mainland. opened in 2023. Taikoo Li Sanlitun, Beijing Retail sales at Taikoo Li Sanlitun increased by 31% in 2023, Taikoo Li Sanlitun is in the Sanlitun area of the Chaoyang following the reopening of Workers’ Stadium and lifting of district of Beijing. It was our first retail development in the COVID-19 associated restrictions. Foot traffic recovered Chinese Mainland. It comprises three neighbouring retail to 2021 levels. Gross rental income increased by 4%. sites, South, North and West. There are approximately Demand for retail space at Taikoo Li Sanlitun is solid as it 284 retail outlets. reinforces its position as a fashionable retail destination. The development was 94% let at 31st December 2023 Taikoo Li Sanlitun South concentrates on contemporary including spaces allocated to prospective tenants who have fashion and designer brands. Apple, ARKET, Sephora, signed letters of intent. WE11DONE and World of Ralph Lauren are tenants. Improvement to tenant mix continued. In 2023, a number Taikoo Li Chengdu of new stores were opened including ARC’TERYX Concept Taikoo Li Chengdu (formerly known as Sino-Ocean Taikoo Li Boutique, Clarks Originals, DIESEL flagship store, GANNI, Chengdu) is in the Jinjiang district of Chengdu and is part Holzweiler, i.t blue block, ISSEY MIYAKE flagship store, Le of the Chunxi Road/Daci Temple shopping district. It is our Labo and Maison Margiela’s first northern China flagship second Taikoo Li project in the Chinese Mainland. Apple, store. Tenants in Taikoo Li Sanlitun North are principally Balenciaga, Boucheron, Cartier Maison, Dior Couture, retailers of luxury, designer fashion and lifestyle brands. Gucci, Harry Winston, Hermès, I.T, Louis Vuitton Maison and To enhance the leading luxury positioning in the Beijing The Hall by Louis Vuitton, Moncler, Muji, The World of Ralph market, structural works to facilitate the tenant mix Lauren, Fangsuo bookstore, Olé Supermarket and a 1,720- improvement at Taikoo Li Sanlitun North is in progress. seat Palace-j’aime cinema are tenants. In 2023, over Alexander McQueen, Balenciaga, Bape, CELINE, Gucci, I.T, 70 brands opened new stores or upgraded to their latest LOEWE, Moncler, CANADA GOOSE and SPACE are tenants. concept stores including Alexander McQueen, ARC’TERYX Jordan, Max Mara, Valentino and Versace became tenants Global Flagship, Baccarat, Moynat, Hasselblad, Homme by in 2023. As an extension to Taikoo Li Sanlitun South, Issey Miyake, Holzweiler, Stone Island, Toteme, The Cheesecake Factory and Wang De Chuan Teahouse. 46

SWIRE PROPERTIES ANNUAL REPORT 2023 TAIKOO LI SANLITUN BEIJING Disregarding the impact arising from the incremental INDIGO, Beijing shareholding at Taikoo Li Chengdu, retail sales and gross INDIGO mall is in the Jiangtai area in the Chaoyang district rental income increased by 33% and 12% respectively. The of Beijing. It is directly linked to the Beijing Metro Line 14 Group continues to reinforce the development as a and is near the airport expressway. Massimo Dutti, i.t, Muji, premium shopping and leisure destination. The Uniqlo, SISYPHE bookstore, Sundan, BHG Market Place and development was 97% let at 31st December 2023. a seven-house with 1,000-seat CGV cinema are tenants. Taikoo Hui, Guangzhou ARMANI EXCHANGE, Calvin Klein, DESCENTE, KAILAS, Max & Co., NEIWAI Active, On, Shokz, erdos KIDS, Fila Kids, Taikoo Hui is in the Tianhe district of Guangzhou. Its mall is New Balance KIDS and JEWELRIA CHOW TAI FOOK became a popular shopping centre in Guangzhou. Bottega Veneta, tenants in 2023. The mall has strengthened its market Cartier, Chanel, DIOR, Gucci, Hermès, I.T, Louis Vuitton, position in the northeast Beijing through its continuous Saint Laurent, Van Cleef & Arpels, Uniqlo, Victoria’s Secret, tenant mix improvement. Fangsuo bookstore and Olé Supermarket are tenants. Retail sales and gross rental income at INDIGO increased AKAK, CELINE, JEWELRIA CHOW TAI FOOK, CARVEN, by 27% and 13% respectively in 2023. The mall was 99% let FERRAGAMO, GUCCI Beauty, LAOPU GOLD, LensCrafters, at 31st December 2023. Longines, LOEWE, LONGCHAMP, mo labo, Maison Margiela, On, Shake Shack and ZAKUZAKU became tenants in 2023. HKRI Taikoo Hui, Shanghai Retail sales and gross rental income at Taikoo Hui increased HKRI Taikoo Hui is on Nanjing West Road in the Jing’an by 15% and 5% respectively in 2023. There were district of Puxi, Shanghai. It has excellent transport improvements to the tenant mix. The mall was 100% let at connections, being next to the Nanjing West Road metro 31st December 2023. station (which serves three metro lines) and near the Yan’an Expressway. 47

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS HKRI Taikoo Hui is our second Taikoo Hui development in Tiffany & Co., Le Labo, Huawei, Perfume de Marly (first the Chinese Mainland. Starbucks Reserve Roastery, flagship store in Shanghai) and Snowpeak. At 31st December CANADA GOOSE, COS, diptyque, drivepro lab, Ermengildo 2023, tenants had committed to take 98% of the retail space Zegna, Guerlain, Golden Goose, IWC, Lululemon, LOEWE, and 95% of the lettable retail space was open. Max Mara, Nio, self-portrait, SPACE, Tesla, The Cheesecake Factory, Shanghai Club, Ho Hung Kee, Venchi and a Chinese Mainland Retail Market Outlook city’super supermarket are tenants. ALLSAINTS, Fred, After benefitting from years of double-digit growth in KANPAI CLASSIC, Lime Garden, Loewe Perfumes, Prada retail sales, 2024 is expected to be a year of stabilisation, Beauty, RIMOWA, Taschen, YSL Beauty and “& other where retailers will take a more prudent approach but stories” became tenants in 2023. maintaining positive outlook in medium to long term. Retail sales at HKRI Taikoo Hui increased by 29% in 2023 Inbound and outbound travel are anticipated to increase while gross rental income decreased by 3% as a result of and a recalibration between onshore and offshore certain part of the mall undergoing renovation. The mall spending behaviour from customers (as compared to was 93% let at 31st December 2023. pre-COVID-19 pattern) is expected. The overall demand for retail space is expected to be Taikoo Li Qiantan, Shanghai stable. It is expected that the demand for retail space from Jointly developed with a subsidiary of Shanghai Lujiazui retailers of luxury brands will remain strong in Guangzhou Finance & Trade Zone Development Co., Ltd., Taikoo Li and Chengdu. In Shanghai and Beijing, demand for retail Qiantan is a retail development in Qiantan, Pudong new space from fashion, cosmetics, lifestyle brands and food district in Shanghai. Connected with three metro lines, and beverage operators is expected to be steady with it has an aggregate GFA of 1,188,727 square feet and retailers of luxury brands taking a relatively more prudent space for around 270 shops. It is our second development expansion approach. in Shanghai and the third Taikoo Li project in the The following chart shows the percentage of attributable Chinese Mainland. gross rental income from the retail properties in the With the economic recovery from the pandemic, footfall Chinese Mainland, for the month ended 31st December and retail sales at Taikoo Li Qiantan were strong in 2023. 2023, derived from leases expiring in the periods with no Retail sales and gross rental income increased by 79% and committed renewals or new lettings. Tenancies accounting 22% respectively in 2023. A number of new stores was for approximately 33.9% of the attributable gross rental opened including the first Dior Café in the Chinese income in the month of December 2023 are due to expire in Mainland, the first Hennessy flagship store in Asia, the first 2024, with tenancies accounting for a further 21.4% of such Muji flagship store with marche in the Chinese Mainland, rental income due to expire in 2025. Retail Lease Expiry Profile 50% (At 31st December 2023) 40% 30% 20% 10% 0 2024 2025 2026 and later 48

SWIRE PROPERTIES ANNUAL REPORT 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 1% to HK$857 million in 2023. Disregarding changes in the value of the Renminbi, total attributable gross rental income increased by 4%. At 31st December 2023, our completed office properties in the Chinese Mainland were valued at HK$20,613 million. Of this amount, the Group’s attributable interest was HK$12,841 million. The portfolio consists of Taikoo Hui in Guangzhou, which is 97% owned, and INDIGO in Beijing and HKRI Taikoo Hui in Shanghai, each of which is 50% owned. Chinese Mainland Completed Office Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 31st December 2023) Interest Taikoo Hui, Guangzhou 1,693,125 92% 97% INDIGO, Beijing 589,071 85% 50% HKRI Taikoo Hui, Shanghai 1,900,838 98% 50% Total 4,183,034 Demand for office space in Beijing, Shanghai and Guangzhou remained weak amid a slower than anticipated economic recovery. In Guangzhou, demand was weak and new supply continued to put pressure on office rents. In Shanghai, net absorption was lower than expected and new supply put pressure on rents in both core and decentralised areas. In Beijing, demand was weak putting downward pressure on rents, whilst new supply in core areas was limited. The Group’s gross rental income from office properties in the Chinese Mainland increased slightly to HK$366 million in 2023. Disregarding changes in the value of the Renminbi, the gross rental income increased by 6%. 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 31st December 2023. Office Area by Tenants’ Businesses (At 31st December 2023) 2.8% 6.6% 7.3% 27.6% Banking/Finance/ Professional services Pharmaceutical Securities/Investment manufacturing 14.8% Trading Technology/ Real estate/Construction/ Media/Telecoms Property development/ Architecture Others 15.4% 25.5% 49

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS HKRI TAIKOO HUI SHANGHAI At 31st December 2023, the top ten office tenants (based Beauty Farm, Donghong Runbao Medical, Elegant Prosper, on attributable gross rental income in the twelve months EVISU, Fosun Medical, Hermès, Intergulf, ITOCHU, Mintai ended 31st December 2023) together occupied Metal and SHURUI Robotics became tenants in 2023. approximately 45% of the Group’s total attributable office area in the Chinese Mainland. INDIGO, Beijing ONE INDIGO was 85% let at 31st December 2023. The main Taikoo Hui, Guangzhou tenants are technology, media and telecoms companies. There are two office towers in Taikoo Hui, Guangzhou. They Demand for office space in 2023 was weak and the were 92% let at 31st December 2023. Demand for office consolidation of technology, media and telecoms space in 2023 was weak and rents were under pressure. companies in Wangjing area of the Chaoyang district Canon, CapitaLand, Dior, Fedex, HSBC, Medtronic, exerted downward pressure on rents. Disney, Eli Lilly, Microsoft, Roche, Samsung, SK, Sumitomo Corporation, Mitsubishi, Rolls Royce, Schlumberger and Western Cloud TOYOTA and UOB are tenants. Chanel, Everwin Law Firm, are tenants. AWOT Global Corporation became tenant Eyugame and SGLA Law Firm leased more space in 2023. in 2023. 50

SWIRE PROPERTIES ANNUAL REPORT 2023 HKRI Taikoo Hui, Shanghai Beijing, limited new supply is expected in core areas There are two office towers at HKRI Taikoo Hui in Shanghai. meaning the market is well-placed once demand returns. In They were 98% let at 31st December 2023. Demand in Shanghai, new supply and existing vacant stock is expected 2023 was weaker than anticipated and new supply put to put downward pressure on office rents, however core pressure on rents. The main tenants are financial services central business districts are expected to be more stable. companies, pharmaceutical companies, law firms, gaming Overall, all cities continue to experience negative sentiment companies and retailers. Abbvie, Advent Capital, Alliance due to economic uncertainties which are causing tenants Bernstein, Amore Pacific, Bank of China, Bally, Beautiful to remain cautious. Office rents are expected to decline and Tree, BionTech, Byredo, Canali, Citic Capital, Clifford have yet to bottom out. Chance, EA, Eli Lilly, Fangda Partners, Fidelity, H&M, Harry The following chart shows the percentage of attributable Winston, Jimmy Choo, JLL, Jun He Law Offices, Michael gross rental income from the office properties in the Kors, Rothschild, Towers Research Capital, Versace and Chinese Mainland, for the month ended 31st December Warner Brothers are tenants. Alix Partners, Alliance 2023, derived from leases expiring in the periods with no Bernstein, Chanel, Investindustrial and Michael Kors committed renewals or new lettings. Tenancies accounting leased more space in 2023. Design Holding became a for approximately 19.1% of the attributable gross rental tenant in 2023. income in the month of December 2023 are due to expire in Chinese Mainland Office Market Outlook 2024, with tenancies accounting for a further 19.5% of such In Guangzhou, new supply in decentralised areas is rental income due to expire in 2025. expected to put downward pressure on office rents. In Office Lease Expiry Profile 70% (At 31st December 2023) 60% 50% 40% 30% 20% 10% 0 2024 2025 2026 and later 51

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Serviced Apartments Sanya There are 24 serviced apartments at the Mandarin Oriental Strategically located in the heart of Haitang Bay National in Taikoo Hui Guangzhou, 42 serviced apartments at The Coastal Recreation Park in Sanya, the development is Temple House in Taikoo Li Chengdu and 102 serviced our first-ever resort-style premium retail development apartments at The Middle House Residences in HKRI including underground parking and other ancillary Taikoo Hui Shanghai. facilities, with GFA of approximately 2.2 million square feet. In collaboration with China Tourism Group Duty Free The performance of the serviced apartments in Shanghai in Corporation Limited, the development will be Phase III of 2023 improved following the lifting of COVID-19 associated the Sanya International Duty-Free Complex. Basement restriction. Occupancy at the Mandarin Oriental in works are in progress. The development is expected to be Guangzhou, The Temple House in Chengdu and The Middle completed in phases from late 2025. The Group has a 50% House Residences in Shanghai was 83%, 61% and 93% interest in this development. respectively at 31st December 2023. Chinese Mainland Serviced Apartments Shanghai New Bund Mixed-use Project Market Outlook The New Bund Mixed-use Project is situated within Shanghai’s middle-ring road and spans a site area of The performance of the serviced apartments is expected to approximately 686,000 square feet. Located at the improve in 2024. intersection of three Shanghai metro lines, the site is Investment Properties Under Development directly opposite to Taikoo Li Qiantan, our first joint venture development with the Lujiazui Group. It is a mixed-use INDIGO Phase Two, Beijing development comprising retail, office and residential INDIGO Phase Two is an extension of the existing INDIGO components, with an approximate GFA of 4.1 million square development, with a GFA of approximately four million feet (including retail floor area below ground). Office square feet. Jointly developed with the Sino-Ocean group, towers have been topped out. Basement and retail INDIGO Phase Two will be an office-led mixed-use construction works are in progress. The development is development and is planned to be completed in two expected to be completed from 2025. The Group has a 40% phases, in 2025 and 2026. Basement and superstructure interest in the development. works are in progress. The Group has a 35% interest in Shanghai Yangjing Mixed-use Project INDIGO Phase Two. Jointly developed with the Lujiazui Group, the Yangjing Taikoo Li Xi’an Mixed-use Project, which is along the Huangpu River and Taikoo Li Xi’an is located at the Small Wild Goose Pagoda within the inner-ring road in Pudong district of Shanghai, historical and cultural zone in the Beilin district of Xi’an will be developed into a mixed-use landmark comprising and is expected to be developed as a retail-led mixed-use premium residential properties, retail, office and cultural development comprising retail and cultural facilities, facilities, potentially a lifestyle hotel as well. The estimated a hotel and serviced residences. The estimated GFA is GFA is approximately 4.2 million square feet (including approximately 2.9 million square feet and is subject to the retail floor area below ground and residential portion for finalisation of development scheme. Excavation works are trading), subject to relevant plan approval. Basement in progress. The project is expected to be completed in structure works are in progress. The development is phases from 2026. The development is being done in expected to be completed in phases from 2027. The Group collaboration with Xi’an Cheng Huan Cultural Investment has a 40% interest in the development. and Development Co., Ltd. The Group has a 70% interest in Taikoo Li Xi’an. 52

SWIRE PROPERTIES ANNUAL REPORT 2023 The chart below illustrates the expected attributable area of the completed property portfolio in the Chinese Mainland. Attributable Area of GFA Completed Property Portfolio (000 sq. ft.) in the Chinese Mainland 18,500 Taikoo Li Sanlitun, Taikoo Li Qiantan, Shanghai New 14,800 Beijing Shanghai Bund Mixed-use (4) Project 11,100 Taikoo Li INDIGO Phase Two, Shanghai Yangjing (1) Chengdu Beijing Mixed-use (5) Taikoo Hui, (2) Project 7,400 Taikoo Li Xi’an Hui Fang, Guangzhou Guangzhou INDIGO, Beijing Sanya(3) 3,700 Others HKRI Taikoo Hui, 0 Shanghai 2022 2023 2024 2025 2026 2027 and later (1) The Group acquired the remaining 35% interest in Sino-Ocean Taikoo Li Chengdu in February 2023, and renamed it as Taikoo Li Chengdu in August 2023. The Group’s interest increased from 65% to 100% after the transaction. (2) The development is expected to open in phases from 2026. (3) The development is expected to open in phases from late 2025. (4) The development is expected to complete from 2025. (5) The development is expected to complete in phases from 2027. 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 673,871 square feet above ground and 956,949 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 late 2026. The Group does not have an ownership interest in the compound. 53

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS BRICKELL CITY CENTRE MIAMI Investment Properties – U.S.A. The Group owns 62.93% of the shopping centre at the Overview Brickell City Centre development. The remaining interest in the shopping centre is owned by Simon Property Group Brickell City Centre, Miami (25%) and Bal Harbour Shops (12.07%). Bal Harbour Shops Brickell City Centre is an urban mixed-use development in has an option, which has been exercisable since February the Brickell financial district of Miami, U.S.A. It has a site 2020, to sell its interest to the Group. area of 504,017 square feet (approximately 11.6 acres). The shopping centre was 100% leased (including by way of The first phase of the Brickell City Centre development letters of intent) at 31st December 2023. Retail sales in comprises a shopping centre, two office towers (Two and 2023 increased by 13% compared to the same period Three Brickell City Centre, which were sold in 2020), a hotel in 2022. with serviced apartments (EAST Miami, which was sold in The second phase of the Brickell City Centre development 2021) managed by Swire Hotels and two residential towers is being planned. (Reach and Rise) developed for sale. All the residential units at Reach and Rise have been sold. 54

SWIRE PROPERTIES ANNUAL REPORT 2023 Brickell City Centre, Miami (1) GFA (sq. ft.) Attributable (100% Basis) Interest Completed Shopping centre 496,508 62.9% Future Development Brickell City Centre land 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 at the Brickell City Centre mall are expected to benefit from an improved tenant mix and population growth in central Miami. Valuation of Investment Properties The portfolio of investment properties was valued at 31st December 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$281,271 million, compared to HK$271,191 million at 31st December 2022. The increase in the valuation of the investment property portfolio primarily reflected the acquisition of subsidiary companies in the Chinese Mainland and the additions for the year, partly offset by a decrease in the fair value of the office investment properties in Hong Kong, the disposal of certain office floors in Hong Kong and foreign exchange translation losses in respect of the investment properties in the Chinese Mainland. Under HKAS 40, hotel properties are not accounted for as investment properties. The hotel buildings are included within property, plant and equipment. The leasehold land is included within right-of-use assets. Both are recorded at cost less accumulated depreciation or amortisation and any provision for impairment. Movement in HK$ Bn Investment Properties 288 286 +2.9 -4.0 284 +15.2 -1.2 282 281.3 At 1st January Net fair value Disposals 280 2023 gains in the 278 U.S.A. Net fair value Acquisition of Translation 276 losses in subsidiary differences 274 Hong Kong companies Net fair value Additions At 31st December 272 271.2 -3.0 gains in the 2023 270 Chinese Mainland 268 +0.1 +0.1 1st Jan 2023 31st Dec 2023 55

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS 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 nine residential projects under development, four in Hong Kong, two in the Chinese Mainland, one in Indonesia, one in Vietnam and one in Thailand. There is also a plan to develop a residential project on part of our land banks in Miami, U.S.A. Property Trading Portfolio (At 31st December 2023) Actual/Expected GFA (sq. ft.) Construction Attributable (100% Basis) Completion Date Interest Completed Hong Kong – EIGHT STAR STREET, Wan Chai 3,091(1) 2022 100% Vietnam – The River, Ho Chi Minh City 22,959(1) 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% – Chai Wan Inland Lot No. 178 692,276(2) from 2025 80% – 269 Queen’s Road East, Wan Chai 102,990(3) 2026 100% – 983-987A King’s Road and 16-94 Pan Hoi Street 440,000(5) 2028 50% Chinese Mainland – Shanghai New Bund Mixed-use Project 1,159,057(4) from 2025 40% – Shanghai Yangjing Mixed-use Project to be determined under planning 40% Indonesia – Savyavasa, South Jakarta 1,122,728 2024 50% Vietnam – Empire City, Ho Chi Minh City 5,357,318 2028 15.73% Thailand – Wireless Road, Bangkok 1,634,220(5) 2029 40% Held for Development or sale U.S.A. – South Brickell Key, Miami, Florida 550,000 under planning 100% – Brickell City Centre, Miami, Florida – North Squared site 523,000(6) 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) Residential GFA only. (5) Total GFA subject to change. (6) Represents saleable area. 56

SWIRE PROPERTIES ANNUAL REPORT 2023 Hong Kong 269 Queen’s Road East, Wan Chai EIGHT STAR STREET, Wan Chai In June 2022, the Group acquired (via a government EIGHT STAR STREET at 8 Star Street, Wan Chai is a land tender) a plot of land at 269 Queen’s Road East in residential building (with retail outlets on the lowest two Wan Chai. The plot of land will be developed primarily levels) of approximately 34,000 square feet. The for residential use with an aggregate GFA of occupation permit was obtained in May 2022. 34 out of approximately 116,000 square feet. Site formation works 37 units had been sold at 8th March 2024. Sales of 33 and foundation works have commenced since July 2023 units had been recognised at 31st December 2023, 6 of and are in progress. The development is under design them in 2023. Sale of 1 unit is expected to be recognised stage and expected to be completed in 2026. in 2024. 983-987A King’s Road and 16-94 Pan Hoi Street LA MONTAGNE, Wong Chuk Hang In 2018, a joint venture company in which the Group (formerly known as Wong Chuk Hang Station holds a 50% interest submitted a compulsory sale Package Four Property Development) application in respect of this site in Quarry Bay. In A joint venture formed by the Group, Kerry Properties August 2023, the Lands Tribunal granted the compulsory Limited and Sino Land Company Limited is undertaking a sale order for the site. In October 2023, the joint venture residential development in Wong Chuk Hang in Hong company obtained full ownership of the sites. In Kong. The development will comprise two residential accordance with applicable town planning controls, it is towers (Phases 4A and 4B) with an aggregate GFA of expected that the site can be redeveloped for residential approximately 638,000 square feet and about 800 and retail uses with a GFA of approximately 440,000 residential units. Superstructure works are in progress. square feet. Pre-sales of Phase 4A started in July 2023. 52 out of Hong Kong Residential Market Outlook 432 units had been pre-sold at 8th March 2024, all of In Hong Kong, residential market sentiment remains soft them in 2023. Sales of these units are expected to be in light of economic uncertainties and high interest rate recognised in 2025. The development is expected to be environment, despite the cancellation of stamp duty completed and handed over to the purchasers in 2024 measures issued by the HKSAR Government. It is and 2025 respectively. The Group has a 25% interest in anticipated that the market confidence and sentiment the joint venture. might take some time to be rebuilt after the end of Chai Wan Inland Lot No. 178 interest rate hikes. Demand remains resilient in the In 2021, a project company held as to 80% by the Group medium to long term, supported by local demand and and as to 20% by China Motor Bus Company, Limited limited supply. completed a land exchange with the HKSAR Government in respect of a plot of land in Chai Wan. The plot of land is being redeveloped into a residential complex (with retail outlet) with an aggregate GFA of approximately 694,000 square feet. Superstructure works are in progress at the Phase 1 site, while substructure works are underway at the Phase 2 site. The development is expected to be completed from 2025. 57

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Chinese Mainland Vietnam In November 2023, the Group completed the In 2020, the Group agreed with City Garden Joint Stock acquisition of 40% equity interest in developments from Company to develop The River, a luxury residential the Lujiazui Group to develop two new landmarks property in Ho Chi Minh City, Vietnam. The development, (Shanghai New Bund Mixed-use Project and Shanghai which was completed in August 2022, comprises 525 Yangjing Mixed-use Project) in Shanghai’s Pudong New luxury apartments in three towers. The Group has an Area. These two sites will be developed into large-scale, effective 20% interest in the development. Approximately mixed-use projects, including retail, office and premium 93% of the units had been sold at 8th March 2024. residential components. Structural works are in progress Handover of the completed units to purchasers is at the New Bund plot while basement structure works in progress. are underway at the Yangjing plot. Around 75% of the In 2021, the Group made a minority investment in total saleable area in the New Bund plot residential Empire City, a residential-led mixed-use development project have been presold at 31st December 2023, with (with residential, retail, office, hotel and serviced an expected completion date from 2025 onwards. apartment components) in Ho Chi Minh City, Vietnam. Indonesia The development is under construction and is expected to be completed in phases up to 2028. The Group In 2019, a joint venture between the Group and Jakarta invested in the development through an agreement with Setiabudi Internasional Group completed the Gaw Capital Partners, an existing participant in the acquisition of a plot of land in South Jakarta, Indonesia. development. Over 53% of the residential units had been The land is being developed for residential purposes pre-sold or sold at 8th March 2024. with an aggregate GFA of approximately 1,123,000 square feet. Towers have been topped out. The Thailand development is expected to comprise around 400 In February 2023, the Group acquired a 40% interest in residential units and to be completed in 2024. The a site located on Wireless Road in Lumphini sub-district Group has a 50% interest in the joint venture. Pre-sales in Pathum Wan district, Bangkok. In partnership with are in progress. 80 units had been pre-sold at City Realty Co. Ltd., the site, which is under design stage, 8th March 2024. is expected to be developed for residential purposes with a site area of approximately 136,000 square feet. The development is expected to comprise over 400 residential units in two towers and to be completed in 2029. 58

SWIRE PROPERTIES ANNUAL REPORT 2023 U.S.A. Hotels In June 2023, the Group announced plans to develop a Managed Hotels and Restaurants luxury residential and hospitality project in Miami. The Overview project, branded as The Residences at The Mandarin Oriental, Miami, will consist of two towers on Brickell Key. The Group owns and manages (through Swire Hotels) The first tower will comprise luxury private residences. The hotels in Hong Kong, the Chinese Mainland and the U.S.A. second tower will comprise a new Mandarin Oriental hotel The House Collective, comprising The Upper House in as well as private residences and hotel residences. Sales Hong Kong, The Opposite House in Beijing, The Temple reservations were launched in December 2023. House in Chengdu and The Middle House in Shanghai, is a group of small and distinctive luxury hotels. There are plans Chinese Mainland, Indonesia, Vietnam, Thailand and to further expand The House Collective to Tokyo, Shenzhen U.S.A. Residential Market Outlook and Xi’an. There are EAST hotels in Hong Kong, Beijing and With urbanisation, a growing middle class and a limited Miami. EAST Miami ceased to be owned by the Group since supply of luxury residential properties, the residential October 2021 but is managed by the Group under a third- markets in Shanghai, the Chinese Mainland, Jakarta, party hotel management agreement. The Group also has Indonesia, Ho Chi Minh City, Vietnam and Bangkok, interests in non-managed hotels in Hong Kong, Guangzhou, Thailand are expected to be stable. The outlook for the Shanghai and Miami. luxury residential market in Miami remains positive. Florida Businesses in the managed hotels in Hong Kong and the is an attractive destination for homebuyers due to its Chinese Mainland recovered strongly following the lifting favourable climate and tax regime, as well as its location as of COVID-19 associated measures and the full reopening of a gateway city to and from Latin America. the border. Operating performance of the managed hotel in Estate Management the U.S.A. was stable. The managed hotels (including restaurants and hotel The Group manages 19 residential estates which it has management office) recorded an operating profit before developed. It also manages OPUS HONG KONG, a depreciation of HK$88 million in 2023, compared with residential property in Hong Kong which the Group an operating loss before depreciation of HK$118 million redeveloped for Swire Pacific Limited. The management in 2022. services include day to day assistance for residents, management, maintenance, cleaning, security and renovation of common areas and facilities. The Group places great emphasis on maintaining good relationships with residents. 59

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS THE TEMPLE HOUSE CHENGDU The Upper House The Opposite House At The Upper House, a 117-room luxury hotel at Pacific The Opposite House is a 99-room luxury hotel at Taikoo Li Place in Hong Kong, revenue per available room and Sanlitun, Beijing. Its occupancy and revenue per available occupancy rebounded strongly following the reopening of room improved strongly following the reopening of the border, with growth of international visitors. In 2023, the border. In 2023, the hotel received awards from the hotel was ranked number three in the Condé Nast Travel + Leisure. Jing Yaa Tang restaurant was awarded Traveler’s 2023 Readers’ Choice Awards for the Best Hotels with 1-star in the MICHELIN Guide Beijing 2023. in Hong Kong category. It also received awards from Travel + Leisure and TripAdvisor and DestinAsian, and was EAST Beijing ranked number four in The World’s 50 Best Hotels 2023. EAST Beijing is a 365-room lifestyle hotel at INDIGO in Beijing, in which the Company has a 50% interest. EAST Hong Kong Occupancy and revenue per available room rebounded At EAST Hong Kong, a 331-room hotel in Taikoo Shing, strongly following the resumption of international flights revenue per available room and occupancy increased after border reopening. The hotel was named Top City significantly following the reopening of the border. Condé Landmark Hotel Award of the Year by Target Magazine. Nast Traveler recognised the hotel as one of the best hotels in Hong Kong. 60

SWIRE PROPERTIES ANNUAL REPORT 2023 The Temple House The Middle House The Temple House (in which the Company has 100% The Middle House (in which the Company has a 50% interest after the completion of the acquisition of the interest) has 111 hotel rooms and 102 serviced apartments remaining 35% interest in February 2023) has 100 hotel at HKRI Taikoo Hui, Shanghai. Revenue per available room rooms and 42 serviced apartments at Taikoo Li Chengdu. and occupancy rebounded in 2023 following the removal of Revenue per available room and occupancy improved COVID-19 measures. The hotel received awards from Condé strongly due to the removal of COVID-19 associated Nast Traveler as the number eleven of the Best Hotels in restrictions. The hotel received award from Condé Nast China and China Top 10 Hotels in the Gold List. Mi Xun Spa Traveler as the number eight of the Best Hotels in China. was named as Best Fitness Center & Spa of the Year in the The Mi Xun Spa was named Most Effective Treatment of SpaChina Wellness & Spa Awards 2023. the Year in SpaChina Wellness and Spa Awards 2023, and China’s Best Wellness Retreat in the World Spa Awards EAST Miami 2023. The Mi Xun Tea House was awarded with 1-star in the EAST Miami at the Brickell City Centre development in MICHELIN Guide Chengdu 2023. Miami has 263 hotel rooms and 89 serviced apartments. The hotel was sold to a third party in October 2021. It continues to be managed by Swire Hotels. Its revenue per available room was stable in 2023. 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) 501 0% – Headland Hotel Chinese Mainland – The Opposite House 99 100% – EAST Beijing 365 50% (2) 142 100% – The Temple House (3) 213 50% – The Middle House U.S.A. (4) 352 0% – EAST Miami 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 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. 61

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Non-managed Hotels Overview The Group has ownership interests in (but does not manage) hotels with 3,138 rooms in aggregate. Hotel Portfolio (not managed by the Group) No. of Rooms Attributable (100% Basis) Interest Completed Hong Kong – Island Shangri-La Hong Kong 557 20% – JW Marriott Hotel Hong Kong 608 20% – Conrad Hong Kong 513 20% – Novotel Citygate Hong Kong 440 26.67% – The Silveri Hong Kong – MGallery 206 26.67% Chinese Mainland (1) – Mandarin Oriental, Guangzhou 287 97% – The Sukhothai Shanghai 201 50% U.S.A. – Mandarin Oriental, Miami 326 75% Total 3,138 (1) Including serviced apartments in the hotel tower. The non-managed hotels in Hong Kong and the Chinese Mainland recovered following the lifting of COVID-19 associated restrictions. Operating performance at the non-managed hotel in the U.S.A. was weaker than that in 2022 as leisure and business travel in the U.S.A. has reverted to pre-COVID-19 patterns. The Mandarin Oriental, Guangzhou is a leading luxury hotel in Guangzhou. The Chinese restaurant at the hotel, Jiang by Chef Fei, obtained a 2-star Michelin award for the fifth consecutive year. The Sukhothai Shanghai is a luxury hotel in Shanghai. Hotels Market Outlook The hotels in Hong Kong are expected to further improve with more international visitors, while the hotel business in the Chinese Mainland is anticipated to grow in 2024. The hotels in the U.S.A. are expected to have a stable performance in 2024. We are expanding our hotel management business, with a focus on extending our hotel brands outside Hong Kong through hotel management agreements. 62

SWIRE PROPERTIES ANNUAL REPORT 2023 Capital Commitments amounted to HK$935 million (2022: HK$4,879 million). Capital Expenditure and Commitments Outstanding capital commitments at 31st December 2023 were HK$15,271 million (2022: HK$16,076 million), Capital expenditure in 2023 on Hong Kong investment including the Group’s share of the capital commitments of properties and hotels, including the Group’s share of the joint venture companies of HK$7,106 million (2022: capital expenditure of joint venture companies, amounted HK$7,370 million). The Group is committed to funding to HK$2,319 million (2022: HK$3,246 million). Outstanding HK$797 million (2022: HK$331 million) of the capital capital commitments at 31st December 2023 were commitments of joint venture companies. In addition to HK$9,919 million (2022: HK$11,878 million), including the this, the Group was committed to make a capital injection Group’s share of the capital commitments of joint venture into a joint venture company of HK$275 million (2022: companies of HK$22 million (2022: HK$67 million). HK$421 million). Capital expenditure in 2023 on Chinese Mainland Capital expenditure in 2023 on investment properties and investment properties and hotels, including the Group’s hotels in the U.S.A. amounted to HK$49 million (2022: share of the capital expenditure of joint venture companies, HK$19 million). Outstanding capital commitments at 31st December 2023 were HK$25 million (2022: nil). Profile of Capital Commitments for Investment Properties and Hotels Commitments Total relating to joint venture (1) (2) Expenditure Forecast expenditure Commitments companies 2027 2023 2024 2025 2026 and later At 31st December 2023 At 31st December 2023 HK$M HK$M HK$M HK$M HK$M HK$M HK$M Hong Kong 2,319 1,466 749 1,489 6,215 9,919 22 Chinese Mainland 935 4,158 4,423 3,480 3,210 15,271 7,106 U.S.A. 49 25 – – – 25 – Total 3,303 5,649 5,172 4,969 9,425 25,215 7,128 (1) The capital commitments represent the Group’s capital commitments of HK$18,087 million plus the Group’s share of the capital commitments of joint venture companies of HK$7,128 million. (2) The Group is committed to funding HK$797 million of the capital commitments of joint venture companies. 63

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS NEW BUND PROJECT, SHANGHAI Development Highlights YANGJING AND NEW BUND PROJECTS New Mixed-Use Landmarks in The Heart of Pudong, Shanghai The Yangjing and New Bund Projects are set to be The New Bund Project is situated within Shanghai’s middle- developed into large-scale, mixed-use projects, comprising ring road and at the intersection of three Shanghai Metro retail, office and premium residential components. lines. Directly opposite to Taikoo Li Qiantan, this project will Located along the Huangpu River, the Yangjing Project has enhance the Company’s efforts to transform the area. deep historical significance for the Swire Group – as it was The two Shanghai investments are a new milestone in the location of the Taikoo Wharf in the early to mid-1900s. Swire Properties’ HK$100 billion investment plan, which is Swire Properties will rejuvenate the area, and debut the driving the Company’s growth over the next decade. Swire Company’s signature upscale residential brand, in the Properties acquired a 40% equity interest in each project, Chinese Mainland market, at this location. in partnership with the Lujiazui Group. The expected completion date for the New Bund Project is from 2025; and phased completion from 2027 for the Yangjing Project. 64

SWIRE PROPERTIES ANNUAL REPORT 2023 Estimated Completion Year Site Area Estimated GFA Owner YANGJING PROJECT From 2027 151,934 sqm 388,437 sqm Lujiazui Group (60%) Swire Properties (40%) NEW BUND PROJECT From 2025 63,804 sqm 276,884 sqm Lujiazui Group (60%) Swire Properties (40%) YANGJING PROJECT, SHANGHAI 65

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Development Highlights TAIKOO LI XI’AN World-Class Commercial Landmark to Open in Phases from 2026 Taikoo Li Xi’an, Swire Properties’ fourth and largest Taikoo Li Taikoo Li Xi’an will place the Small Wild Goose Pagoda – project in the Chinese Mainland, will comprise a shopping a world heritage site, and the Jianfu Temple – a royal mall, cultural facilities and a luxury The House Collective temple of Tang Chang’an, as key focal points. hotel, with a total investment of approximately RMB10 billion. Taikoo Li Xi’an will feature an innovative low-rise and Located within the Small Wild Goose Pagoda historical and open-plan design, inspired by the simple yet elegant style cultural zone, this development will create a vibrant, world- of traditional Tang Dynasty architecture. The site is a class cultural and commercial destination in Xi’an; and transportation hub and is conveniently located at the showcase Xi’an on both the national and international stage. intersection of two metro lines (Line 2 & Line 5). 6666

SWIRE PROPERSWIRE PROPERTIESTIES ANNUANNUAL REPORAL REPORT 2023T 2023 Artist’s ImpressionArtist’s Impression EstimaEstimatteded Completion YCompletion Yearear SitSite Are Areaea FrFromom ApprApprooximaximattelyely 20262026 128,494 sqm128,494 sqm EstimaEstimatted GFed GFAA OwnerOwner 272,796 sqm272,796 sqm Swire Properties Swire Properties (70%)(70%) Xi’an Cheng HuanXi’an Cheng Huan Cultural InvestmentCultural Investment and Developmentand Development Co., Ltd.Co., Ltd. (30%) (30%) Artist’s ImpressionArtist’s Impression 6767

SWIRE PROPERSWIRE PROPERTIESTIES ANNUANNUAL REPORAL REPORT 2023T 2023 Artist’s ImpressionArtist’s Impression EstimaEstimatteded Completion YCompletion Yearear SitSite Are Areaea FrFromom ApprApprooximaximattelyely 20262026 128,494 sqm128,494 sqm EstimaEstimatted GFed GFAAOwnerOwner 272,796 sqm272,796 sqmSwire Properties Swire Properties (70%)(70%) Xi’an Cheng HuanXi’an Cheng Huan Cultural InvestmentCultural Investment and Developmentand Development Co., Ltd.Co., Ltd. (30%) (30%) Artist’s ImpressionArtist’s Impression 6767

INDIGO, BEIJING

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS HONG KONG CHINESE MAINLAND U.S.A. Taikoo Place One Taikoo Place Oxford House Taikoo Hui Taikoo Hui Towers 1 & 2 Taikoo Li Taikoo Li Brickell City Centre 1,013,368 sf 501,253 sf 1,693,125 sf Sanlitun North and Cityplaza One Island East GUANGZHOU Sanlitun 552,532 sf MIAMI, FLORIDA PCCW Tower Berkshire 1,537,615 sf* Mandarin Oriental, 613,679 sf House Guangzhou BEIJING Dorset House 388,838 sf 509,434 sf Taikoo Li Sanlitun West 601,723 sf Serviced Apartments 293,405 sf Brickell City Centre Lincoln House 50,376 sf (Shopping Mall) 333,529 sf 496,508 sf EAST Future Residences Development 75,068 sf The Opposite House ~523,000 sf r Tai Koo Station 169,463 sf o d i r r o C n r e t Two Brickell City Centre** s a E d n a l s I T i a n h e d E a a o s R t d g R a n o i a o h d R S o n o k u i EAST Hong Kong t a i T Taikoo Hui l Tianhe Road n a W 199,633 sf (Shopping Mall) S t e s e t l e a Shipaiqiao Station r n t d S s 1,529,392 sf i R o o a H d Cityplaza n a M P i a m i (Shopping Mall) R i v Taikoo Li e King’s Road 1,096,898 sf r Quarry Bay Sanlitun South M i a m th th i R i v e * Including the 45 to 54 floors t r s 1 Station 776,909 sf W th S e (except for the 49 floor) Devon House Cambridge House Two Taikoo Place u n e v disposed of. 803,452 sf 268,795 sf 994,545 sf HKRI Taikoo Hui HKRI Taikoo Hui HKRI Centre 1 A S E (Shopping Mall) 1,178,493 sf 5 Metrorail t h S t r e 1,039,407 sf Brickell Station e and ZHANGYUAN S t E 6 t The Middle House h S t r e HKRI Centre 2 S e SHANGHAI Residences W t 8 t 722,345 sf h The Silveri One Citygate Novotel Citygate Hong Kong 147,323 sf Taikoo Li Chengdu The Temple House S t Taikoo Li r e e e t Hong Kong – 160,522 sf 236,758 sf (Shopping Centre) 299,941 sf u Citygate n e v A S i E m a MGallery The Sukhothai 1,314,237 sf i 7 M t Chengdu h h t u S o t 131,965 sf S r The Middle Shanghai e e S t 328,625 sf CHENGDU W House 9 t Future h Metromover 247,958 sf d S a t o r Development d R e Eighth Street i e a s i a o c t z a a R D l P l Station l ~1,510,000 sf g e k c n i i r j B n a N t s e North Lantau Highway W dao T R ia a t T u h n i g R o e a d W # West Nanjing EAST Miami Three Brickell City Centre** Shimenyi Road Road Station g n u h C g n u M T e ^ i T ^ u n n io t a t g S ZHANGYUAN, with gross floor area of S ZHANGYUAN t r e e t Citygate Outlets 1,630,820 sf (including car parking spaces), ** Two Brickell City Centre and Three Brickell City Centre were sold in 2020. 803,582 sf is operated and managed by a joint venture The office towers are now managed by Swire Properties. which is 60% owned by Swire Properties. # EAST Miami was sold in 2021. The hotel and serviced apartments are still managed by Swire Hotels. Swire Properties does not have an West Nanjing Road Station ownership interest in the compound. Chunxi Road Station Three Pacific Place The Upper House One Conrad Hong Kong Island Shangri-La Pacific Place 627,657 sf 158,738 sf Pacific Place 555,590 sf Hong Kong STAR STUDIOS JW Marriott 863,266 sf 605,728 sf 52,273 sf Hong Kong 525,904 sf ^^ ^^ INDIGO INDIGO Phase Two – Office INDIGO Phase Two – Hotel EAST Beijing ONE INDIGO New Bund Project New Bund Project EIGHT STAR STREET (Under Development) (Under Development) 358,301 sf 589,071 sf Taikoo Li Residential Tower 1-4 Office Tower 1 & 2 8,459 sf* BEIJING 2,809,103 sf 346,803 sf Qiantan and 1,159,057 sf 1,352,228 sf SPACES. 8QRE 81,346 sf New Bund Project Taikoo Li Qiantan SHANGHAI (Shopping Centre) 1,188,727 sf H Five Pacific Place e n n e s s y R d o a d a o R o Oriental Sports a i 145,390 sf q Q n u a e i e n x s w a u y i Admiralty INDIGO Phase Two – Retail J Center Station Notes: d Six Pacific Place Station ^^ a (Under Development) New Bund Project is under o Gross floor area figures are shown on a 100% basis. R ^^ ~223,303 sf Three Pacific Place Pacific Place PACIFIC PLACE Two u New Bund Project 889,608 sf y * Floor area shown including the INDIGO development by a joint venture g d These diagrams are not to scale and are for illustration purposes only. n a o R Jiangtai Station t s Pedestrian Link (Shopping Mall) APARTMENTS Pacific Place o e W i Retail s g n D a gross floor area of remaining (Below Ground) 711,182 sf 443,075 sf 695,510 sf (Shopping Mall) which is 40% owned by Y 1,628,152 sf These diagrams illustrate the major developments of Swire Properties. For details of other developments, residential units of 5,608 sf. 946,769 sf Swire Properties. please refer to the Schedule of Principal Group Properties on pages 211 to 222.

MANAGEMENT DISCUSSION & ANALYSISMANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONSREVIEW OF OPERATIONS HONG KONGHONG KONG U.S.A. CHINESE MAINLANDCHINESE MAINLAND U.S.A. Taikoo PlaceTaikoo PlaceOne TOne Taikaikoo Placeoo PlaceOxOxfforord Housed HouseTaikoo HuiTaikoo Hui TTaikoaikooo HHuuii TToowweerrs s 11 && 22 Taikoo LiTaikoo Li TTaikaikoo Lioo Li Brickell City CentreBrickell City Centre 1,013,368 sf1,013,368 sf501,253 sf501,253 sf 1,693,125 s1,693,125 sff Sanlitun NorSanlitun Northth and Cityplazaand CityplazaOne Island EastOne Island East GUGUANGANGZHOUZHOU SanlitunSanlitun 552,532 sf552,532 sf MIAMI, FLORIDAMIAMI, FLORIDA PCCPCCW TW ToowwererBerkshirBerkshiree1,537,615 sf1,537,615 sf** MaMannddaaririnn Ori Orieentalntal,, 613,679 sf613,679 sfHouseHouse GGuuaanngzgzhhoouu BEIJINGBEIJING DorDorset Houseset House388,838 sf388,838 sf 509,434 509,434 ssff TTaikaikoo Li Sanlitun Woo Li Sanlitun Westest 601,723 sf601,723 sf SeSerrvviced Aiced Appartmeartmentntss 293,405 sf293,405 sf BrickBrickell City Centrell City Centree Lincoln HouseLincoln House 50,37650,376 ssff (Shopping Mall)(Shopping Mall) 333,529 sf333,529 sf 496,508 sf496,508 sf EASEAST T FFuuturturee RResidencesesidences DeDevvelopmentelopment 75,068 sf75,068 sf The OppositThe Opposite Housee House ~523,000 sf~523,000 sf rrTTai Kai Koo Staoo Stationtion 169,463 sf169,463 sf oo dd ii rr rr oo CC nn rr ee tt TTwwo Bricko Brickell City Centrell City Centree**** ss aa EE dd nn aa ll ss II TT ii aa nn hh ee dd EE aa aa oo ss RR tt dd gg RR aa nn oo ii aa oo hh dd RR SS oo nn oo kk uu iiEASEAST Hong KT Hong Kongong tt aa ii TT TTaiaikkoooo HHuuii ll Tianhe RTianhe Roadoad nn aa WW199,633 sf199,633 sf (Shopping Mall)(Shopping Mall) SS ttee ss eett ll eeaa Shipaiqiao StaShipaiqiao Stationtion rrnn ttdd SSss 1,529,392 sf1,529,392 sf iiRR oooo aa HHddCityplazaCityplaza nn aa MM PP ii aa mm ii (Shopping Mall)(Shopping Mall) RR ii vv TTaikaikoo Lioo Li ee KingKing’s R’s Roadoad1,096,898 sf1,096,898 sf rr Quarry BayQuarry Bay Sanlitun SouSanlitun Southth MM ii aa mm thththth ii RR ii vv ee * * IncIncluding the 45luding the 45 t to 54o 54 floors floors tt rr ss 11 StaStationtion 776,909 sf776,909 sf WW thth SS ee ((eexxccept fept for the 49or the 49 floor) floor) DeDevvon House on House Cambridge HouseCambridge HouseTTwwo To Taikaikoo Placeoo Place uu nn ee vv disposed ofdisposed of. . 803,452 sf803,452 sf268,795 sf268,795 sf994,545 sf994,545 sfHKRI Taikoo Hui HKRI Taikoo Hui HKRI THKRI Taikaikoo Huioo Hui HKRI CentrHKRI Centre 1e 1 AA SS EE (Shopping Mall)(Shopping Mall) 1,178,493 sf1,178,493 sf 55 MMetretrororailail tt hh SS tt rr ee 1,039,407 sf1,039,407 sf BrickBrickell Staell Stationtion ee and ZHANGYUANand ZHANGYUAN SS tt EE 66 tt The Middle HouseThe Middle House hh SS tt rr ee HKRI CentrHKRI Centre 2e 2 SS ee SHANGHAISHANGHAI RResidencesesidences WW tt 88 tt 722,345 sf722,345 sf hh The SilvThe Silveri eri One CitygaOne CitygatteeNoNovvoottel Citygael Citygatte Hong Ke Hong Kongong 147,323 sf147,323 sf TTaikaikoo Li Chengoo Li Chengdudu The TThe Temple Houseemple House SS tt Taikoo LiTaikoo Li rr ee ee ee tt Hong KHong Kong –ong –160,522 sf160,522 sf236,758 sf236,758 sf (Shopping Centr(Shopping Centree)) 299,941 sf299,941 sf uu CitygateCitygate nn ee vv AA SS ii EE mm aa MGallerMGalleryy The SukhoThe Sukhothai thai 1,314,237 sf1,314,237 sf ii 77 MM tt ChengduChengdu hh hh tt uu SS oo tt 131,965 sf131,965 sf SS rr The MiddleThe Middle ShanghaiShanghai ee ee SS tt 328,625 sf328,625 sf CHENGDUCHENGDU WW HouseHouse 99 tt FFuuturturee hh MMetretromoveromover 247,958 sf247,958 sf dd SS aa tt oo rr DeDevvelopmentelopment dd RR ee Eighth StrEighth Streeteet ii ee aa ss ii aa oo cc tt zz aa aa RR DD ll PP ll StaStationtion ll ~1,510,000 sf~1,510,000 sf gg ee kk cc nn ii ii rr jj BB nn aa NN tt ss ee NorNorth Lantau Highwth Lantau Highwayay WW ddaaoo TT RR iiaa aa tt TT uu hh nn ii gg RR oo ee aa dd WW EASEAST MiamiT Miami## ThrThree Brickee Brickell City Centrell City Centree**** Shimenyi RShimenyi Roadoad WWest Nanjingest Nanjing RRoad Staoad Stationtion gg nn uu hh CC gg nn uu MMTT ee ^^ ii TT ^^ uu nnnn iioo tt aa tt ggSS ZHANGYUZHANGYUANAN, with gr, with gross floor aross floor areea of a of SS ZHANGYUZHANGYUANAN tt rr ee ee ttCitygaCitygatte Oue Outletstlets 1,630,820 sf (inc1,630,820 sf (including car parking spacluding car parking spaceses), ), ** ** TTwo Brickwo Brickell City Centrell City Centre and Thre and Three Brickee Brickell City Centrell City Centre were were sold in 2020. e sold in 2020. 803,582 sf803,582 sf is operis operaatted and managed and managed by a joint ventured by a joint venture e The officThe office te towers arowers are now manage now managed by Swired by Swire Pre Properoperties.ties. which is 60% owned by Swirwhich is 60% owned by Swire Pre Properoperties. ties. ## EASEAST Miami wT Miami was sold in 2021. The hotas sold in 2021. The hotel and serel and servicviced apared apartments artments are still manage still managed by Swired by Swire Hote Hotels.els. SwirSwire Pre Properoperties doties does not have an es not have an WWest Nanjing Rest Nanjing Road Staoad Stationtion ownership intownership intererest in the compound. est in the compound. Chunxi RChunxi Road Staoad Stationtion ThrThree Pacifee Pacific Placeic PlaceThe Upper HouseThe Upper HouseOne One Conrad Hong KConrad Hong KongongIsland Shangri-La Island Shangri-La Pacific PlacePacific Place627,657 sf627,657 sf158,738 sf158,738 sfPacifPacific Placeic Place555,590 sf555,590 sfHong KHong Kongong SSTTAR SAR STUDIOSTUDIOSJW MarrioJW Marriottt t 863,266 sf863,266 sf605,728 sf605,728 sf 52,273 sf52,273 sfHong KHong Kongong 525,904 sf525,904 sf ^^^^ ^^^^ INDIGOINDIGO INDIGO Phase TINDIGO Phase Twwo – Ofo – Offficeice INDIGO Phase TINDIGO Phase Twwo – Hoo – Hottelel EASEAST BeijingT Beijing ONE INDIGOONE INDIGO NeNew Bund Prw Bund Proojecjectt NeNew Bund Prw Bund Proojecjectt EIGHT SEIGHT STTAR SAR STREETREETT (Under De(Under Devvelopmentelopment) ) (Under De(Under Devvelopmentelopment) ) 358,301 sf358,301 sf 589,071 sf589,071 sf Taikoo LiTaikoo Li RResidential Tesidential Toowwer 1-4 er 1-4 OfOfffice Tice Toowwer 1 & 2 er 1 & 2 8,459 sf8,459 sf** BEIJINGBEIJING 2,809,103 sf2,809,103 sf 346,803 sf346,803 sf Qiantan and Qiantan and 1,159,057 sf1,159,057 sf 1,352,228 sf1,352,228 sf SPSPAACES. 8QRECES. 8QRE 81,346 sf81,346 sf New Bund ProjectNew Bund Project TTaikaikoo Li Qiantan oo Li Qiantan SHANGHAISHANGHAI (Shopping Centr(Shopping Centree) ) 1,188,727 sf1,188,727 sf HH FivFive Pacife Pacific Placeic Placeee nn nn ee ss ss yy RR dd oo aa dd aa oo RR oo Oriental SporOriental Sports ts aa ii 145,390 sf145,390 sf qq QQ nn uu aa ee ii ee nn xx ss ww aa uu yy ii AAdmirdmiralty alty INDIGO Phase TINDIGO Phase Twwo – Ro – Retailetail JJ CentCenter Staer Stationtion NotNotes: es: dd Six PacifSix Pacific Placeic PlaceStaStationtion ^^^^ aa (Under De(Under Devvelopmentelopment) ) New Bund PrNew Bund Project is under oject is under oo GrGross floor aross floor areea figa figurures ares are shown on a 100% basis.e shown on a 100% basis. RR ^^^^ ~223,303 sf~223,303 sfThrThree Pacifee Pacific Placeic PlacePacifPacific Placeic PlacePPAACIFIC PLCIFIC PLAACECETwTwoo uu NeNew Bund Prw Bund Proojecjectt 889,608 sf889,608 sf yy * * Floor arFloor areea shown inca shown including the luding the INDIGOINDIGO development by a joint venturdevelopment by a joint venture e gg dd These diagrThese diagrams arams are not te not to scale and aro scale and are fe for illustror illustraation purtion purposes only.poses only. nn aa oo RR JiangJiangtai Statai Stationtion tt ss PPedestrian Linkedestrian Link(Shopping Mall)(Shopping Mall)APAPARARTTMENTSMENTSPacifPacific Placeic Place oo ee WW ii RRetail etail ss gg nn DD aa grgross floor aross floor areea of ra of remaining emaining ((BeloBelow Grw Groundound))711,182 sf711,182 sf443,075 sf443,075 sf695,510 sf695,510 sf (Shopping Mall) (Shopping Mall) which is 40% owned by which is 40% owned by YY 1,628,152 sf1,628,152 sf These diagrThese diagrams illustrams illustraatte the mae the major developments of Swirjor developments of Swire Pre Properoperties. For details of other developments,ties. For details of other developments, rresidential units of 5,608 sfesidential units of 5,608 sf. . 946,769 sf946,769 sf SwirSwire Pre Properoperties.ties. pleplease rase refefer ter to the Schedule of Principal Gro the Schedule of Principal Group Proup Properoperties on pagties on pages 211 tes 211 to 222.o 222.

MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS HONG KONGHONG KONGCHINESE MAINLANDCHINESE MAINLAND U.S.A.U.S.A. Taikoo PlaceTaikoo PlaceOne TOne Taikaikoo Placeoo PlaceOxOxfforord Housed HouseTaikoo HuiTaikoo HuiTTaikoaikooo HHuuii TToowweerrs s 11 && 22Taikoo LiTaikoo Li TTaikaikoo Lioo Li Brickell City CentreBrickell City Centre 1,013,368 sf1,013,368 sf501,253 sf501,253 sf1,693,125 s1,693,125 sff Sanlitun NorSanlitun Northth and Cityplazaand CityplazaOne Island EastOne Island EastGUGUANGANGZHOUZHOUSanlitunSanlitun 552,532 sf552,532 sf MIAMI, FLORIDAMIAMI, FLORIDA PCCPCCW TW ToowwererBerkshirBerkshiree1,537,615 sf1,537,615 sf**MaMannddaaririnn Ori Orieentalntal,, 613,679 sf613,679 sfHouseHouseGGuuaanngzgzhhoouu BEIJINGBEIJING DorDorset Houseset House388,838 sf388,838 sf509,434 509,434 ssff TTaikaikoo Li Sanlitun Woo Li Sanlitun Westest 601,723 sf601,723 sfSeSerrvviced Aiced Appartmeartmentntss 293,405 sf293,405 sf BrickBrickell City Centrell City Centree Lincoln HouseLincoln House50,37650,376 ssff (Shopping Mall)(Shopping Mall) 333,529 sf333,529 sf 496,508 sf496,508 sf EASEAST T FFuuturturee RResidencesesidences DeDevvelopmentelopment 75,068 sf75,068 sf The OppositThe Opposite Housee House ~523,000 sf~523,000 sf rrTTai Kai Koo Staoo Stationtion 169,463 sf169,463 sf oo dd ii rr rr oo CC nn rr ee tt TTwwo Bricko Brickell City Centrell City Centree**** ss aa EE dd nn aa ll ss II TT ii aa nn hh ee ddEE aaaa ooss RRtt dd ggRR aa nnoo iiaa oo hhdd RR SS oo nn oo kk uu iiEASEAST Hong KT Hong Kongong tt aa ii TTTTaiaikkoooo HHuuii ll Tianhe RTianhe Roadoad nn aa WW199,633 sf199,633 sf(Shopping Mall)(Shopping Mall) SS ttee ss eett ll eeaaShipaiqiao StaShipaiqiao Stationtion rrnn ttdd SSss1,529,392 sf1,529,392 sf iiRR oooo aa HHddCityplazaCityplaza nn aa MM PP ii aa mm ii (Shopping Mall)(Shopping Mall) RR ii vv TTaikaikoo Lioo Li ee KingKing’s R’s Roadoad1,096,898 sf1,096,898 sf rr Quarry BayQuarry Bay Sanlitun SouSanlitun Southth MM ii aa mm thththth ii RR ii vv ee * * IncIncluding the 45luding the 45 t to 54o 54 floors floors tt rr ss 11 StaStationtion 776,909 sf776,909 sf WW thth SS ee ((eexxccept fept for the 49or the 49 floor) floor) DeDevvon House on House Cambridge HouseCambridge HouseTTwwo To Taikaikoo Placeoo Place uu nn ee vv disposed ofdisposed of. . 803,452 sf803,452 sf268,795 sf268,795 sf994,545 sf994,545 sfHKRI Taikoo Hui HKRI Taikoo Hui HKRI THKRI Taikaikoo Huioo HuiHKRI CentrHKRI Centre 1e 1 AA SS EE (Shopping Mall)(Shopping Mall) 1,178,493 sf1,178,493 sf 55 MMetretrororailail tt hh SS tt rr ee 1,039,407 sf1,039,407 sf BrickBrickell Staell Stationtion ee and ZHANGYUANand ZHANGYUAN SS tt EE 66 tt The Middle HouseThe Middle House hh SS tt rr ee HKRI CentrHKRI Centre 2e 2 SS ee SHANGHAISHANGHAIRResidencesesidences WW tt 88 tt 722,345 sf722,345 sf hh The SilvThe Silveri eri One CitygaOne CitygatteeNoNovvoottel Citygael Citygatte Hong Ke Hong Kongong147,323 sf147,323 sf TTaikaikoo Li Chengoo Li Chengdudu The TThe Temple Houseemple House SS tt Taikoo LiTaikoo Li rr ee ee ee tt Hong KHong Kong –ong –160,522 sf160,522 sf236,758 sf236,758 sf (Shopping Centr(Shopping Centree)) 299,941 sf299,941 sf uu CitygateCitygate nn ee vv AA SS ii EE mm aa MGallerMGalleryyThe SukhoThe Sukhothai thai 1,314,237 sf1,314,237 sf ii 77 MM tt ChengduChengdu hh hh tt uu SS oo tt 131,965 sf131,965 sf SS rr The MiddleThe MiddleShanghaiShanghai ee ee SS tt 328,625 sf328,625 sf CHENGDUCHENGDU WW HouseHouse 99 tt FFuuturturee hh MMetretromoveromover 247,958 sf247,958 sf dd SS aa tt oo rr DeDevvelopmentelopment dd RR ee Eighth StrEighth Streeteet ii ee aa ss ii aa oo cc tt zz aa aa RR DD ll PP ll StaStationtion ll ~1,510,000 sf~1,510,000 sf gg ee kk cc nn ii ii rr jj BB nn aa NN tt ss ee NorNorth Lantau Highwth Lantau HighwayayWWddaaoo TTRR iiaa aa tt TT uuhh nnii gg RR ooee aa ddWW ## WWest Nanjingest Nanjing EASEAST MiamiT Miami ThrThree Brickee Brickell City Centrell City Centree**** Shimenyi RShimenyi Roadoad RRoad Staoad Stationtion gg nn uu hh CC gg nn uu MMTT ee^^ ii TT^^ uu nnnn iioo tt aa tt ggSS ZHANGYUZHANGYUANAN, with gr, with gross floor aross floor areea of a of SSZHANGYUZHANGYUANAN tt rr ee ee ttCitygaCitygatte Oue Outletstlets1,630,820 sf (inc1,630,820 sf (including car parking spacluding car parking spaceses), ), ** ** TTwo Brickwo Brickell City Centrell City Centre and Thre and Three Brickee Brickell City Centrell City Centre were were sold in 2020. e sold in 2020. 803,582 sf803,582 sfis operis operaatted and managed and managed by a joint ventured by a joint venture e The officThe office te towers arowers are now manage now managed by Swired by Swire Pre Properoperties.ties. which is 60% owned by Swirwhich is 60% owned by Swire Pre Properoperties. ties. ## EASEAST Miami wT Miami was sold in 2021. The hotas sold in 2021. The hotel and serel and servicviced apared apartments artments are still manage still managed by Swired by Swire Hote Hotels.els. SwirSwire Pre Properoperties doties does not have an es not have an WWest Nanjing Rest Nanjing Road Staoad Stationtion ownership intownership intererest in the compound. est in the compound. Chunxi RChunxi Road Staoad Stationtion ThrThree Pacifee Pacific Placeic PlaceThe Upper HouseThe Upper HouseOne One Conrad Hong KConrad Hong KongongIsland Shangri-La Island Shangri-La Pacific PlacePacific Place627,657 sf627,657 sf158,738 sf158,738 sfPacifPacific Placeic Place555,590 sf555,590 sfHong KHong Kongong SSTTAR SAR STUDIOSTUDIOSJW MarrioJW Marriottt t 863,266 sf863,266 sf605,728 sf605,728 sf 52,273 sf52,273 sfHong KHong Kongong 525,904 sf525,904 sf ^^^^ ^^^^ INDIGOINDIGOINDIGO Phase TINDIGO Phase Twwo – Ofo – OffficeiceINDIGO Phase TINDIGO Phase Twwo – Hoo – HottelelEASEAST BeijingT BeijingONE INDIGOONE INDIGO NeNew Bund Prw Bund Proojecjectt NeNew Bund Prw Bund Proojecjectt EIGHT SEIGHT STTAR SAR STREETREETT(Under De(Under Devvelopmentelopment) ) (Under De(Under Devvelopmentelopment) ) 358,301 sf358,301 sf589,071 sf589,071 sfTaikoo LiTaikoo Li RResidential Tesidential Toowwer 1-4 er 1-4 OfOfffice Tice Toowwer 1 & 2 er 1 & 2 8,459 sf8,459 sf**BEIJINGBEIJING2,809,103 sf2,809,103 sf346,803 sf346,803 sfQiantan and Qiantan and 1,159,057 sf1,159,057 sf 1,352,228 sf1,352,228 sf SPSPAACES. 8QRECES. 8QRE 81,346 sf81,346 sf New Bund ProjectNew Bund Project TTaikaikoo Li Qiantan oo Li Qiantan SHANGHAISHANGHAI (Shopping Centr(Shopping Centree) ) 1,188,727 sf1,188,727 sf HH FivFive Pacife Pacific Placeic Placeee nn nn ee ss ss yy RRdd oo aa ddaa oo RR oo Oriental SporOriental Sports ts aa ii 145,390 sf145,390 sfqq QQnn uuaa eeii ee nnxx ss ww aauu yyii AAdmirdmiralty alty INDIGO Phase TINDIGO Phase Twwo – Ro – RetailetailJJ CentCenter Staer Stationtion NotNotes: es: dd Six PacifSix Pacific Placeic PlaceStaStationtion ^^^^ aa (Under De(Under Devvelopmentelopment) ) New Bund PrNew Bund Project is under oject is under oo GrGross floor aross floor areea figa figurures ares are shown on a 100% basis.e shown on a 100% basis. RR ^^^^ ~223,303 sf~223,303 sfThrThree Pacifee Pacific Placeic PlacePacifPacific Placeic PlacePPAACIFIC PLCIFIC PLAACECETwTwoo uu NeNew Bund Prw Bund Proojecjectt 889,608 sf889,608 sf yy * * Floor arFloor areea shown inca shown including the luding the INDIGOINDIGOdevelopment by a joint venturdevelopment by a joint venture e gg dd These diagrThese diagrams arams are not te not to scale and aro scale and are fe for illustror illustraation purtion purposes only.poses only. nn aa oo RR JiangJiangtai Statai Stationtion tt ss PPedestrian Linkedestrian Link(Shopping Mall)(Shopping Mall)APAPARARTTMENTSMENTSPacifPacific Placeic Place oo ee WW ii RRetail etail ss gg nn DD aa grgross floor aross floor areea of ra of remaining emaining ((BeloBelow Grw Groundound))711,182 sf711,182 sf443,075 sf443,075 sf695,510 sf695,510 sf(Shopping Mall) (Shopping Mall) which is 40% owned by which is 40% owned by YY 1,628,152 sf1,628,152 sf These diagrThese diagrams illustrams illustraatte the mae the major developments of Swirjor developments of Swire Pre Properoperties. For details of other developments,ties. For details of other developments, rresidential units of 5,608 sfesidential units of 5,608 sf. . 946,769 sf946,769 sfSwirSwire Pre Properoperties.ties. pleplease rase refefer ter to the Schedule of Principal Gro the Schedule of Principal Group Proup Properoperties on pagties on pages 211 tes 211 to 222.o 222.

HONG KONGCHINESE MAINLANDU.S.A. Taikoo PlaceOne Taikoo PlaceOxford HouseTaikoo HuiTaikoo Hui Towers 1 & 2Taikoo LiTaikoo LiBrickell City Centre 1,013,368 sf501,253 sf1,693,125 sfSanlitun North and CityplazaOne Island EastGUANGZHOUSanlitun552,532 sfMIAMI, FLORIDA PCCW TowerBerkshire1,537,615 sf*Mandarin Oriental, 613,679 sfHouseGuangzhouBEIJING Dorset House388,838 sf509,434 sfTaikoo Li Sanlitun West 601,723 sfServiced Apartments293,405 sf Brickell City Centre Lincoln House50,376 sf (Shopping Mall) 333,529 sf 496,508 sf EAST Future Residences Development 75,068 sfThe Opposite House ~523,000 sf rTai Koo Station169,463 sf o d i r r o C n r e t Two Brickell City Centre** s a E d n a l s I T i a n h e dE aa os Rt d gRa no iao hdR S on o ku iEAST Hong Kongt ai TTaikoo Huil Tianhe Roadn a W199,633 sf(Shopping Mall)S te s et l eaShipaiqiao Station rn td Ss1,529,392 sf iR oo a HdCityplaza n a M P i a m i (Shopping Mall) R i v Taikoo Li e King’s Road1,096,898 sf r Quarry BaySanlitun South M i a m thth i R i v e * Including the 45 to 54 floors t r s 1 Station 776,909 sf W th S e (except for the 49 floor) Devon House Cambridge HouseTwo Taikoo Placeu n e v disposed of. 803,452 sf268,795 sf994,545 sfHKRI Taikoo Hui HKRI Taikoo HuiHKRI Centre 1A S E (Shopping Mall) 1,178,493 sf 5 Metrorail t h S t r e 1,039,407 sf Brickell Station e and ZHANGYUAN S t E 6 t The Middle House h S t r e HKRI Centre 2 S e SHANGHAIResidences W t 8 t 722,345 sf h The Silveri One CitygateNovotel Citygate Hong Kong147,323 sfTaikoo Li ChengduThe Temple House S t Taikoo Li r e e e t Hong Kong –160,522 sf236,758 sf(Shopping Centre)299,941 sf u Citygate n e v A S i E m a MGalleryThe Sukhothai 1,314,237 sf i 7 M t Chengdu h h t u S o t 131,965 sf S r The MiddleShanghai e e S t 328,625 sfCHENGDU W House 9 t Future h Metromover 247,958 sfd S a t o r Development dR e Eighth Street i e as i a oc t z a a RD l P l Station l ~1,510,000 sf g e k c n i i r j B n a N t s e North Lantau HighwayWdao TR ia a t T uh ni g R oe a dW EAST Miami# Three Brickell City Centre** Shimenyi RoadWest Nanjing Road Station g n u h C g n u MT e^ i T^ u nn io t a t gS ZHANGYUAN, with gross floor area of SZHANGYUAN t r e e tCitygate Outlets1,630,820 sf (including car parking spaces), ** Two Brickell City Centre and Three Brickell City Centre were sold in 2020. 803,582 sfis operated and managed by a joint venture The office towers are now managed by Swire Properties. which is 60% owned by Swire Properties. # EAST Miami was sold in 2021. The hotel and serviced apartments are still managed by Swire Hotels. Swire Properties does not have an West Nanjing Road Station ownership interest in the compound. Chunxi Road Station Three Pacific PlaceThe Upper HouseOne Conrad Hong KongIsland Shangri-La Pacific Place627,657 sf158,738 sfPacific Place555,590 sfHong Kong STAR STUDIOSJW Marriott 863,266 sf605,728 sf 52,273 sfHong Kong 525,904 sf^^^^ INDIGOINDIGO Phase Two – OfficeINDIGO Phase Two – HotelEAST BeijingONE INDIGONew Bund Project New Bund Project EIGHT STAR STREET(Under Development) (Under Development) 358,301 sf589,071 sfTaikoo LiResidential Tower 1-4 Office Tower 1 & 2 8,459 sf*BEIJING2,809,103 sf346,803 sfQiantan and 1,159,057 sf1,352,228 sf SPACES. 8QRE 81,346 sfNew Bund ProjectTaikoo Li Qiantan SHANGHAI(Shopping Centre) 1,188,727 sf H Five Pacific Placee n n e s s y Rd o a da o R oOriental Sports a i 145,390 sfq Qn ua ei e nx s w au yi Admiralty INDIGO Phase Two – RetailJCenter StationNotes: d Six Pacific PlaceStation^^a (Under Development) New Bund Project is under oGross floor area figures are shown on a 100% basis. R ^^ ~223,303 sfThree Pacific PlacePacific PlacePACIFIC PLACETwouNew Bund Project 889,608 sfy * Floor area shown including the INDIGOdevelopment by a joint venture gdThese diagrams are not to scale and are for illustration purposes only. na o R Jiangtai Station t s Pedestrian Link(Shopping Mall)APARTMENTSPacific Placeoe W iRetail s g n Da gross floor area of remaining (Below Ground)711,182 sf443,075 sf695,510 sf(Shopping Mall) which is 40% owned by Y1,628,152 sfThese diagrams illustrate the major developments of Swire Properties. For details of other developments, residential units of 5,608 sf. 946,769 sfSwire Properties.please refer to the Schedule of Principal Group Properties on pages 211 to 222.

FINANCIAL REVIEW References are to “Notes to the Financial Statements” on pages 147 to 204. Consolidated Statement of Profit or Loss 2023 2022 HK$M HK$M Reference Revenue 14,670 13,826 Note 4 The increase in revenue of HK$844 million compared to 2022 was principally due to higher gross rental income from property investment and higher revenue from hotels, partly offset by lower revenue from property trading. Gross rental income from property investment increased by HK$1,182 million. In the Chinese Mainland, gross rental income increased by HK$1,157 million, mainly reflecting the strong recovery of the retail portfolio from the pandemic and the incremental contribution arising from the completion of the acquisition of the remaining 35% interest in Taikoo Li Chengdu in February 2023. In the U.S.A., gross rental income increased, principally due to the improved tenant mix. In Hong Kong, gross rental income was at par. The higher retail rental income as a result of strong recovery of the retail sales, was offset by the lower office rental income, reflecting the weak office market. Revenue from hotels increased by HK$414 million. Hotels in Hong Kong and the Chinese Mainland recovered strongly following the lifting of COVID-19 related measures, the reopening of the border and resumption of international flights. Occupancy and room rates improved. Revenue from property trading decreased by HK$755 million from 2022. In 2023, revenue was recognised from the sale of 6 units of EIGHT STAR STREET in Hong Kong. In 2022, revenue was recognised from the sale of 27 units of EIGHT STAR STREET in Hong Kong and a property in Fort Lauderdale in Florida, U.S.A. 74

SWIRE PROPERTIES ANNUAL REPORT 2023 Consolidated Statement of Profit or Loss (continued) 2023 2022 HK$M HK$M Reference Gross Profit 10,386 9,523 Gross profit increased by HK$863 million. Gross profit from property investment and hotels increased by HK$913 million and HK$200 million respectively, while gross profit from property trading decreased by HK$253 million. Gross profit from property investment increased by HK$913 million, principally due to the strong recovery of the retail portfolio in Hong Kong and the Chinese Mainland and the incremental contribution from Taikoo Li Chengdu, partly offset by lower office gross profit in Hong Kong. Hotel business recorded a gross profit of HK$80 million in 2023 compared with a gross loss of HK$120 million in 2022, mainly due to higher hotel revenue in Hong Kong and the Chinese Mainland. Gross profit from property trading reflected the recognition of profits on the sale of EIGHT STAR STREET units in Hong Kong. Operating Profit 5,180 9,024 Note 8(a) The decrease in operating profit of HK$3,844 million was principally due to a fair value loss on investment properties in 2023 (compared with a fair value gain in 2022), partly offset by higher profits from property investment in the Chinese Mainland. The fair value gain in 2022 was primarily due to a reduction of 25 to 50 basis points in the capitalisation rates of certain investment properties in the Chinese Mainland and a fair value gain in relation to certain properties held under development. A fair value loss on investment properties of HK$2,829 million was recorded in 2023, compared with a fair value gain of HK$801 million in 2022. Investment properties in Hong Kong recorded a fair value loss of HK$3,073 million, principally due to lower rents. The investment properties at Brickell City Centre in Miami, U.S.A. recorded a fair value gain of HK$166 million, mainly due to higher rents. Investment properties in the Chinese Mainland recorded a fair value gain of HK$78 million. Administrative and selling expenses increased by HK$345 million compared to 2022. The increase principally reflected higher project related costs and inflation in 2023. 75

MANAGEMENT DISCUSSION & ANALYSIS FINANCIAL REVIEW Consolidated Statement of Profit or Loss (continued) 2023 2022 HK$M HK$M Reference Net Finance Charges 520 187 Note 10 The increase of HK$333 million principally due to a higher level of borrowings in Hong Kong and the Chinese Mainland, and increase in interest rates in Hong Kong and the U.S.A., partly offset by the increase in interest capitalised on investment properties and properties for sale in Hong Kong and the Chinese Mainland. Share of Profit Less Losses of Joint Venture Companies 124 1,443 Note 8(a) The decrease of HK$1,319 million principally reflected the fair value loss of HK$667 million in 2023 (compared with the fair value gain of HK$510 million in 2022) and loss of contribution from Taikoo Li Chengdu as joint venture companies after becoming subsidiaries of the Group. Share of Profit Less Losses of Associated Companies (416) 12 Note 8(a) The loss of HK$416 million as compared to a gain of HK$12 million in 2022, primarily reflected the fair value loss of HK$454 million for the year, partly offset by higher hotel revenue in Hong Kong. Taxation 1,617 2,065 Note 11 The decrease of HK$448 million was principally due to a decrease in deferred tax in relation to the fair value changes in respect of investment properties in the Chinese Mainland and the U.S.A. Profit Attributable to the Company’s Shareholders 2,637 7,980 Note 8(a) The decrease of HK$5,343 million principally reflected a fair value loss on investment properties in 2023 (compared with a fair value gain in 2022), higher net finance charges and lower profit from property trading, partly offset by higher profit from property investment and hotel. 76

SWIRE PROPERTIES ANNUAL REPORT 2023 Consolidated Statement of Financial Position 2023 2022 HK$M HK$M Reference Property, Plant and Equipment 3,644 3,165 Note 15 The increase in property, plant and equipment was principally due to the acquisition of subsidiaries and additions to plant and equipment, partly offset by depreciation for the year and foreign exchange translation losses (principally in respect of leasehold buildings in the Chinese Mainland). Investment Properties 281,463 271,368 Note 16 The increase in investment properties of HK$10,095 million was principally due to the acquisition of subsidiaries (Taikoo Li Chengdu) of HK$15,230 million, additions during the year (after netting off cost written back) of HK$2,877 million, partly offset by a fair value loss of HK$2,829 million, foreign exchange translation losses of HK$1,200 million and the disposals of nine floors of One Island East in Hong Kong of HK$4,006 million. The additions reflected capital expenditure at the Taikoo Place redevelopment, Six Pacific Place, Taikoo Li Xi’an, and other projects in Hong Kong and the Chinese Mainland. The foreign exchange translation losses were principally in respect of investment properties in the Chinese Mainland. Intangible Assets 1,555 208 Note 17 The increase of HK$1,347 million principally reflected the goodwill arising from the acquisition of subsidiaries. Joint Venture Companies and Loans Due from 34,057 39,862 Note 20 Joint Venture Companies The decrease of HK$5,805 million principally reflected (i) transfer of Taikoo Li Chengdu from joint venture to subsidiary companies, (ii) the Company’s share of foreign exchange translation losses in respect of joint venture companies in the Chinese Mainland, partly offset by (iii) movements in loans due from joint venture companies, (iv) increases in equity to joint venture companies, (v) the Company’s share of profits of joint venture companies (net off fair value loss) and (vi) the acquisition of additional interests in joint venture companies. Associated Companies and Loans due from Associated Companies 10,792 525 Note 21 The increase of HK$10,267 million principally reflected the acquisition of equity in associated companies, partly offset by the Company’s share of loss of associated companies (including fair value loss). Properties For Sale 9,121 8,264 Note 23 The increase of HK$857 million principally reflected the development expenditures of Chai Wan Inland Lot No. 178 and 269 Queen’s Road East in Hong Kong, partly offset by sales of units at EIGHT STAR STREET in Hong Kong. 77

MANAGEMENT DISCUSSION & ANALYSIS FINANCIAL REVIEW Consolidated Statement of Financial Position (continued) 2023 2022 HK$M HK$M Reference Trade and Other Receivables 3,506 2,834 Note 24 The increase of HK$672 million mainly reflected the deposit paid for tendering purpose. Assets Classified as Held For Sale 543 2,038 Note 31 This represents 384 car parking spaces at Taikoo Shing, Hong Kong. Trade and Other Payables 9,763 10,008 Note 26 The decrease of HK$245 million principally reflected the settlement of a payment obligation related to the acquisitions of joint venture companies, decrease in accrued capital expenditure and decrease in interest-bearing advances from joint venture companies, partly offset by deposit received and the acquisition of subsidiary companies. Long-Term Loans and Bonds 41,169 22,835 Note 28 (including the component due within one year) The increase of HK$18,334 million was principally due to the drawdown of bank loans, the consolidation of bank loan at the acquisition of the remaining equity interest in Taikoo Li Chengdu, and the issue of medium term notes in Hong Kong. Deferred Tax Liabilities 14,082 11,248 Note 30 The increase of HK$2,834 million principally reflected the consolidation of Taikoo Li Chengdu after the acquisition of the remaining interest and deferred tax charges for the year, partly offset by foreign exchange translation losses in the Chinese Mainland. Equity Attributable to the Company’s Shareholders 285,082 289,211 Notes 33 The decrease in equity attributable to the Company’s shareholders and 34 represents the total comprehensive income for the year attributable to the Company’s shareholders (HK$1,780 million), as reduced by dividends paid to the Company’s shareholders. Non-Controlling Interests 3,067 3,047 Note 36 The increase in non-controlling interests of HK$20 million mainly reflected capital contribution from an owner of non-controlling interest and profits earned by the owners of non-controlling interests, partly offset by foreign exchange translation losses in respect of entities in which there are non-controlling interests and dividends paid to the owners of non-controlling interests. 78

SWIRE PROPERTIES ANNUAL REPORT 2023 Consolidated Statement of Cash Flows 2023 2022 HK$M HK$M Reference Cash Generated from Operations 7,492 6,332 Note 41(a) Cash generated from operations of HK$7,492 million principally comprised cash inflows from property investment of approximately HK$9,935 million and from property trading of approximately HK$213 million, partly offset by operating expenses of approximately HK$1,527 million and expenditure on properties for sale of approximately HK$583 million (after netting off contribution from a non-controlling interest). Tax Paid 963 1,127 The decrease principally reflected less tax paid in Hong Kong. Purchase of Property, Plant and Equipment 217 133 Note 41(b) The increase principally reflected additions of plant and equipment in Hong Kong. Additions of Investment Properties 2,771 7,096 The amount in 2023 principally reflected capital expenditure on the Taikoo Place redevelopment, Six Pacific Place, Taikoo Li Xi’an and on other projects in Hong Kong and the Chinese Mainland. Proceeds from Disposal of Subsidiary Companies, 535 1,060 Note 24 Net of Cash Disposed of The amount in 2023 reflected the receipt of settlement of a deferred payment for the sale of the Group’s interest in the Cityplaza One office tower in Hong Kong. Proceeds from Disposal of Investment Properties 5,291 609 The amount in 2023 reflected the proceeds from disposal of nine floors in One Island East and Taikoo Shing car parking spaces in Hong Kong. Payment for Acquisition of Subsidiary Companies, 3,699 – Note 43 Net of Cash Acquired The amount in 2023 reflected the acquisition of the remaining equity interest in Taikoo Li Chengdu. Purchase of Shares in Joint Venture Companies, Equity and 2,316 2,034 Loans (Net of Repayment) to Joint Venture Companies The amount in 2023 principally reflected the purchase of shares and equity injected in joint venture companies in aggregate of HK$1,147 million and net movements of loans with joint venture companies of HK$1,169 million. Equity and Loans (Net of Repayment) to Associated Companies 10,380 52 The amount in 2023 principally reflected the purchase of shares in associated companies. Loans Drawn and Refinanced, and Bonds Issued 15,053 (1,838) (Net of Repayment of Loans, Bonds and Lease Liabilities) The amount in 2023 principally reflected the drawdown of bank loans and the issue of medium term notes in Hong Kong, partly offset by repayment of loans. 79

MANAGEMENT DISCUSSION & ANALYSIS FINANCIAL REVIEW Investment Appraisal and Performance Review Net Assets Employed Capital Commitments(1) 2023 2022 2023 2022 HK$M HK$M HK$M HK$M Property investment 300,678 293,752 24,823 27,402 Property trading 17,334 11,612 – – Hotels 6,816 5,841 392 552 Total net assets employed 324,828 311,205 25,215 27,954 Less: net debt (36,679) (18,947) Less: non-controlling interests (3,067) (3,047) Equity attributable to the Company’s shareholders 285,082 289,211 Return on Average Equity Equity Attributable to the Attributable to the Company’s Shareholders(2) Company’s Shareholders(2) 2023 2022 HK$M HK$M 2023 2022 Property investment 276,512 279,688 1.0% 2.9% Property trading 3,038 3,992 -4.8% 3.9% Hotels 5,532 5,531 -1.8% -6.0% Total 285,082 289,211 0.9% 2.7% (1) The capital commitments represent the Group’s capital commitments plus the Group’s share of the capital commitments of joint venture companies. (2) Refer to Glossary on page 223 for definitions. 80

SWIRE PROPERTIES ANNUAL REPORT 2023 FINANCING • Capital Structure The Group considers a number of factors in monitoring • Medium Term Note Programme its capital structure, which principally include the gearing • Changes in Financing ratio, cash interest cover and the return cycle of its • Net Debt investments. • Sources of Finance – Loans and Bonds Medium Term Note Programme – Bank Balances and Short-term Deposits In 2012, Swire Properties MTN Financing Limited, a • Maturity Profile and Refinancing wholly-owned subsidiary of the Company, established a • Currency Profile US$3 billion Medium Term Note (“MTN”) Programme. • Finance Charges The aggregate nominal amount of the MTN Programme • Gearing Ratio and Interest Cover was increased to US$4 billion in 2017. Notes issued under • Capital Management the MTN Programme are unconditionally and irrevocably • Attributable Net Debt guaranteed by the Company. At 31st December 2023, • Debt in Joint Venture and Associated Companies the MTN Programme was rated A by Fitch and (P)A2 by Capital Structure Moody’s, in each case in respect of notes with a maturity of more than one year. The Group aims to maintain a capital structure which The MTN Programme enables the Group to raise money enables it to invest in and finance projects in a disciplined directly from the capital markets. Under the MTN and targeted manner. Programme, notes may be issued in United States The Group’s primary objectives when managing capital are dollars or in other currencies, in various amounts and for to safeguard the Group’s ability to operate as a going various tenors. concern, so that it can continue to provide returns for shareholders, and to secure access to finance at a reasonable cost. 81

MANAGEMENT DISCUSSION & ANALYSIS FINANCING Changes in Financing Audited Financial Information During the year, the Group raised approximately HK$19,127 million. This comprised: • term and revolving loan facilities aggregating HK$12,415 million • medium term notes aggregating HK$6,712 million During the year, the Group made various repayments of debt. This comprised: • repayment and prepayment of term and revolving loan facilities aggregating HK$2,930 million • repayment of medium term notes of HK$200 million During the year, the Group acquired the remaining equity interest in Taikoo Li Chengdu and hence consolidated its debt. Loans and bonds due within due after Lease Total one year one year liabilities 2023 2022 HK$M HK$M HK$M HK$M HK$M At 1st January 700 22,135 614 23,449 25,167 Loans drawn and refinanced 5,524 5,999 – 11,523 7,237 Bonds issued – 6,742 – 6,742 – Acquisition of subsidiary companies 438 2,713 42 3,193 – Bonds matured (200) – – (200) (3,899) Repayment of loans (830) (2,100) – (2,930) (5,110) New leases arranged during the year – – 62 62 160 Principal elements of lease payments – – (82) (82) (66) Reclassification 1,875 (1,875) – – – Currency adjustment 52 (79) (16) (43) (44) Other non-cash movements 4 71 (13) 62 4 At 31st December 7,563 33,606 607 41,776 23,449 Net Debt Audited Financial Information Net debt at 31st December 2023 was HK$36,679 million, compared with HK$18,947 million at 31st December 2022. The increase in net debt principally reflected capital and development expenditure and investment in joint venture companies and acquisitions of subsidiary companies. The Group’s borrowings are principally denominated in Hong Kong dollars, Renminbi and United States dollars. Outstanding borrowings at 31st December 2023 and 2022 were as follows: 2023 2022 HK$M HK$M Borrowings included in non-current liabilities Bank borrowings 13,159 7,311 Bonds 20,447 14,824 Borrowings included in current liabilities Bank borrowings 6,463 500 Bonds 1,100 200 Total borrowings 41,169 22,835 Lease liabilities Included in non-current liabilities 527 535 Included in current liabilities 80 79 Less: short-term deposits and bank balances 5,097 4,502 Net debt 36,679 18,947 82

SWIRE PROPERTIES ANNUAL REPORT 2023 Sources of Finance Audited Financial Information At 31st December 2023, committed loan facilities and debt securities amounted to HK$54,041 million, of which HK$12,700 million (24%) remained undrawn. In addition, the Group had undrawn uncommitted facilities totalling HK$400 million. Sources of funds at 31st December 2023 comprised: Undrawn Undrawn Expiring Expiring Within After Available Drawn One Year One Year HK$M HK$M HK$M HK$M Facilities from third parties Term loans 14,710 14,710 – – Revolving loans 17,741 5,041 – 12,700 Bonds 21,590 21,590 – – Total committed facilities 54,041 41,341 – 12,700 Uncommitted facilities Bank loans and overdrafts 400 – 400 – Total 54,441 41,341 400 12,700 Note: The figures above are stated before unamortised loan fees of HK$172 million. i) Loans and Bonds Audited Financial Information For accounting purposes, loans and bonds are classified as follows: 2023 2022 Drawn, Drawn, Before Before Unamortised Unamortised Carrying Unamortised Unamortised Carrying Loan Fees Loan Fees Value Loan Fees Loan Fees Value HK$M HK$M HK$M HK$M HK$M HK$M Long-term loans and bonds at amortised cost 41,341 (172) 41,169 22,980 (145) 22,835 Less: amount due within one year included under current liabilities 7,569 (6) 7,563 700 – 700 33,772 (166) 33,606 22,280 (145) 22,135 ii) Bank Balances and Short-term Deposits The Group had bank balances and short-term deposits of HK$5,097 million at 31st December 2023, compared to HK$4,502 million at 31st December 2022. 83

MANAGEMENT DISCUSSION & ANALYSIS FINANCING Maturity Profile and Refinancing Bank loans and other borrowings are repayable on various dates up to 2033 (2022: up to 2030). The weighted average term and cost of the Group’s debt are: 2023 2022 Weighted average term of debt 3.0 years 3.9 years Weighted average cost of debt 4.1% 3.2% Note: The weighted average cost of debt above is stated on gross debt basis. The maturity profile of the Group’s available committed facilities is set out below: Total Available HK$M Committed Facilities 15,000 by Maturity 12,000 9,000 Facilities from third parties 6,000 Term and revolving loans 3,000 Bonds 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Audited Financial Information The table below sets forth the maturity profile of the Group’s borrowings: 2023 2022 HK$M HK$M Bank borrowings and bonds from third parties due Within 1 year 7,563 18% 700 3% 1-2 years 6,073 15% 1,875 8% 2-5 years 25,256 61% 15,195 67% After 5 years 2,277 6% 5,065 22% Total 41,169 100% 22,835 100% Less: Amount due within one year included under current liabilities 7,563 700 Amount due after one year included under non-current liabilities 33,606 22,135 84

SWIRE PROPERTIES ANNUAL REPORT 2023 Currency Profile Audited Financial Information An analysis of the carrying amounts of gross borrowings by currency (after cross-currency swaps) is shown below: 2023 2022 HK$M HK$M Currency Hong Kong dollars 25,243 61% 19,740 86% United States dollars 3,499 9% 3,095 14% Renminbi 12,427 30% – – Total 41,169 100% 22,835 100% Finance Charges Audited Financial Information An analysis of outstanding borrowings by reference to whether they bear interest at fixed or floating rates is shown below: 2023 2022 HK$M HK$M Fixed 27,955 68% 15,061 66% Floating 13,386 32% 7,919 34% Sub-total 41,341 100% 22,980 100% Less: Unamortised loan fee 172 145 Total 41,169 22,835 The exposure of the Group’s borrowings to fixed and floating interest rates can be illustrated as follows: Fixed Interest Rates Maturing in: Floating Interest 1 Year 1 to 5 Over 5 Rates or Less Years Years Total HK$M HK$M HK$M HK$M HK$M At 31st December 2023 13,277 3,301 23,122 1,469 41,169 At 31st December 2022 7,811 200 9,759 5,065 22,835 85

MANAGEMENT DISCUSSION & ANALYSIS FINANCING Audited Financial Information (continued) Interest charged and earned during the year was as follows: 2023 2022 HK$M HK$M Interest charged on: Bank loans and overdrafts 743 158 Bonds 614 559 Interest-bearing advances from joint venture companies 2 16 Lease liabilities 21 19 Net fair value (gains)/losses on derivative instruments Cash flow hedges – transferred from other comprehensive income (41) (13) Cross-currency swaps not qualifying as hedges 1 1 Other financing costs 125 109 1,465 849 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 53 66 Capitalised on: Investment properties (510) (370) Properties for sale (270) (186) 738 359 Interest income on: Short-term deposits and bank balances (64) (105) Loans to joint venture and associated companies (136) (51) Others (18) (16) (218) (172) Net finance charges 520 187 The capitalised interest rates on funds both borrowed generally and used for the development of investment properties and properties for sale were between 3.2% and 6.2% per annum (2022: 2.9% and 3.7% per annum). The amount transferred from other comprehensive income in respect of cash flow hedges in 2023 includes HK$12 million (2022: HK$12 million) relating to currency basis. The interest rates per annum (after cross-currency and interest rate swaps) at 31st December were as follows: 2023 2022 HKD RMB USD HKD USD % % % % % Long-term loans and bonds 2.4-6.6 3.0-3.9 6.1-6.3 2.3-5.7 5.1-5.2 86

SWIRE PROPERTIES ANNUAL REPORT 2023 Gearing Ratio and Interest Cover The following graphs illustrate the gearing ratio and underlying interest cover for each of the last five years: Gearing Ratio HK$M Ratio (%) 350,000 35 300,000 30 250,000 25 200,000 20 Total equity 150,000 15 Net debt 100,000 10 50,000 5 Gearing ratio 0 0 2019 2020 2021 2022 2023 Underlying HK$M Times Interest Cover 28,000 112 24,000 96 Underlying operating profit 20,000 80 Net finance charges 16,000 64 12,000 48 Capitalised interest 8,000 32 4,000 16 Underlying interest cover Underlying cash interest cover 0 0 2019 2020 2021 2022 2023 87

MANAGEMENT DISCUSSION & ANALYSIS FINANCING 2023 2022 (1) Gearing ratio 12.7% 6.5% (1) Interest cover – times Per financial statements 10.0 48.3 Underlying 26.8 74.7 (1) Cash interest cover – times Per financial statements 4.0 12.1 Underlying 10.0 13.4 (1) Refer to Glossary on page 223 for definitions. Capital Management Audited Financial Information The Group’s primary objectives when managing capital are to safeguard the Group’s ability to operate as a going concern, so that it can continue to provide returns for shareholders, and to secure access to finance at a reasonable cost. The Group considers a number of factors in monitoring its capital structure, which principally include the gearing ratio, cash interest cover and the return cycle of its investments. For the purpose of the gearing ratio, the Group defines net debt as total borrowings and lease liabilities less short-term deposits and bank balances. Capital comprises total equity, as shown in the consolidated statement of financial position. In order to maintain or adjust the gearing ratio, the Group may adjust the amount of dividends paid to shareholders, repurchase shares, raise new debt financing or sell assets to reduce debt. The gearing ratios at 31st December 2023 and 31st December 2022 were as follows: 2023 2022 HK$M HK$M Total borrowings 41,169 22,835 Lease liabilities 607 614 Less: Short-term deposits and bank balances 5,097 4,502 Net debt 36,679 18,947 Total equity 288,149 292,258 Gearing ratio 12.7% 6.5% The Group has given certain covenants under facilities from third-parties, including maintenance of a minimum amount of tangible net worth. The Group has significant headroom on all covenants, and does not expect any breach in the foreseeable future. 88

SWIRE PROPERTIES ANNUAL REPORT 2023 Attributable Net Debt The chart below illustrates, by entity, the Group’s attributable net debt (in HK$ million): Swire Properties (935) Swire Properties (Finance) Swire Properties MTN 13,403 Financing 21,547 Consolidated Net Debt H.K. Chinese Mainland U.S.A. and other 36,679 Entities Entities Entities (245) (306) 3,215 H.K. Chinese Mainland U.S.A. and other Attributable JV/Asso JV/Asso JV/Asso Net Debt of Joint 3,444 3,403 64 Venture and Associated Companies (“JV/Asso”) 6,911 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 the end of 2023 and 2022: Net Debt of Portion of Net Debt Joint Venture and Attributable to Debt Guaranteed by Associated Companies the Group the Group 2023 2022 2023 2022 2023 2022 HK$M HK$M HK$M HK$M HK$M HK$M Hong Kong Entities 10,228 10,402 3,444 3,472 2,408 2,408 Chinese Mainland Entities 7,042 15,171 3,403 7,532 1,449 1,203 U.S.A. and other Entities 86 542 64 461 139 570 Total 17,356 26,115 6,911 11,465 3,996 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 15.1%. 89

TAIKOO PLACE, HONG KONG

CORPORATE GOVERNANCE & SUSTAINABILITY

CORPORATE GOVERNANCE Corporate and Governance Culture employees and others who deal with the Company to act Swire Properties is committed to ensuring that its affairs with honesty and integrity and to raise concerns about are conducted in accordance with its corporate and actual or suspected cases of impropriety. Indicators used governance culture and values of integrity, originality, for assessing and monitoring social and corporate excellence, humility, teamwork, continuity and high ethical governance-related data (including staff turnover rates, standards, which form a coherent set of principles that are whistleblowing data, employee surveys and breaches of relevant across the Company’s business and underpin the Company’s Corporate Code of Conduct) are set out in everything it does. This reflects its belief that, in the the Sustainability Report 2023 of the Company. The Group achievement of its long-term objectives, it is imperative to offers competitive remuneration and benefits designed to act with probity, transparency and accountability. By so attract, motivate and retain talented people at all levels. acting, Swire Properties believes that shareholder value will Having regard to the corporate culture reflected in the be maximised in the long term and that its employees, policies and practices of the Group, the Board is satisfied those with whom it does business and the communities in that the purpose, values and strategic directions of the which it operates will all benefit. Group are aligned with its culture. Corporate governance is the process by which the Corporate Governance Statement Board instructs management of the Group to conduct its The Corporate Governance Code (the “CG Code”) as affairs with a view to ensuring that its objectives are met. published by The Stock Exchange of Hong Kong Limited The Board is committed to maintaining and developing sets out the principles of good corporate governance and robust corporate governance practices that are intended provides two levels of recommendation: to ensure: • satisfactory and sustainable returns to shareholders • code provisions, with which issuers are expected to • that the interests of those who deal with the Company comply, but with which they may choose not to comply, are safeguarded provided they give considered reasons and explanations • that overall business risk is understood and managed for non-compliance appropriately • recommended best practices, with which issuers are • the delivery of high-quality products and services to encouraged to comply, but which are provided for the satisfaction of customers guidance only • that high standards of ethics are maintained and The Company supports the principles-based approach of • sustainable development of the business and the the CG Code and the flexibility this provides for the communities in which the Company operates with a adoption of corporate policies and procedures which view to create long-term value recognise the individuality of companies. Swire Properties The Board provides guidance to management by defining has adopted its own corporate governance code which is the purpose, values and strategic direction of the Group, available on its website (www.swireproperties.com). and plays an important role in establishing and instilling a Corporate governance does not stand still; it evolves with culture that reinforces the values of acting lawfully, the business and operating environment. The Company is ethically and responsibly. The Company’s Corporate Code always ready to learn and adopt best practices. of Conduct ensures that the corporate culture and The Company complied with all the code provisions set out expected behaviours are clearly communicated to in the CG Code contained in Part 2 of Appendix C1 to the everyone in the Group. Appropriate policies and procedures Rules Governing the Listing of Securities on The Stock are in place to promote and reinforce the need for Exchange of Hong Kong Limited (the “Listing Rules”) throughout the year covered by the annual report. 92

SWIRE PROPERTIES ANNUAL REPORT 2023 The Board of Directors Chairman and Chief Executive Role of the Board The CG Code requires that the roles of Chairman and Chief The Company is governed by a Board of Directors, which Executive be separate and not performed by the same has responsibility for strategic leadership and control of the individual to ensure there is a clear division of Group designed to maximise shareholder value, while responsibilities between the running of the Board and the taking due account of the interests of those with whom the executives who run the business. Group does business and others. Guy Bradley, the Chairman, is responsible for: Responsibility for achieving the Company’s objectives and • leadership of the Board running the business on a day-to-day basis is delegated to • setting its agenda and taking into account any matters management. The Board exercises a number of reserved proposed by other Directors for inclusion in the agenda powers which include: • facilitating effective contributions from and dialogue • maintaining and promoting the culture of the Company with all Directors and constructive relations between • formulation of long-term strategy them • approving public announcements, including financial • ensuring that all Directors are properly briefed on issues statements arising at Board meetings and that they receive • committing to major acquisitions, divestments and accurate, timely and clear information capital projects • obtaining consensus amongst the Directors • authorising significant changes to the capital structure • ensuring, through the Board, that good corporate and material borrowings governance practices and procedures are followed • any issue, or buy-back, of equity securities under the Tim Blackburn, the Chief Executive, is responsible for relevant general mandates implementing the policies and strategies set by the Board • approving treasury policy in order to ensure the successful day-to-day management • setting dividend policy of the Group’s business. • approving appointments to the Board Throughout the year, there was a clear division of • ensuring that appropriate management development responsibilities between the Chairman and the and succession plans are in place Chief Executive. • setting the Group remuneration policy • approving annual budgets and forecasts Board Composition • reviewing operational and financial performance The Board is structured with a view to ensuring it is • reviewing the effectiveness of the Group’s risk of a high calibre and has a balance of skills, experience management and internal control systems and diversity of perspectives appropriate to the • ensuring the adequacy of the resources, staff Company’s business so that it works effectively as a qualifications and experience, training programmes and team, and that individuals or groups do not dominate budget of the Company’s accounting, internal audit, any decision-making. financial reporting and environmental, social and governance (“ESG”) functions The Board comprises the Chairman, three other Executive • overseeing sustainable development matters Directors and ten Non-Executive Directors. Their To assist it in fulfilling its duties, the Board has three biographical details are set out in the section of this annual primary committees, the Audit Committee (see pages 105 report headed Directors and Officers and are posted on the to 106), the Nomination Committee (see pages 102 to 103) Company’s website. and the Remuneration Committee (see page 103). 93

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE Tim Blackburn, Guy Bradley, Fanny Lung, Mabelle Ma, significant links with other Directors through involvements Martin Murray and Richard Sell are directors and/or in other companies or bodies. The Board considers that all employees of the John Swire & Sons Limited (“Swire”) of the Independent Non-Executive Directors are group. Adam Fenwick and Merlin Swire are independent in character and judgement. shareholders, directors and/or employees of and Spencer Fung has served as an Independent Non-Executive Raymond Lim is an adviser to the Swire group. Director for more than nine years. The Directors are of the The Non-Executive Directors bring independent advice, opinion that he remains independent, notwithstanding his judgement and, through constructive challenge, length of tenure. Spencer Fung continues to demonstrate scrutiny of executives and review of performance and the attributes of an Independent Non-Executive Director risks. The Audit, Nomination and Remuneration noted above and there is no evidence that his tenure has Committees of the Board comprise only Non-Executive had any impact on his independence. During his tenure, Directors. Spencer Fung was not involved in the daily management of Five of the ten Non-Executive Directors are the Company nor in any relationship or circumstances Independent Non-Executive Directors, which which would materially interfere with his exercise of represents at least one-third of the Board of Directors. independent judgement. He has not held any interests in the shares of the Company. He has demonstrated strong Board Independence independence by providing impartial views and exercising independent judgment at Board and Board committee The Company has in place effective mechanisms to meetings. Drawing upon experience and skills acquired ensure that independent views and input are available through his other directorships and offices, he is also to the Board. The Nomination Committee, a majority of capable of bringing fresh and objective perspectives to the which is comprised of Independent Non-Executive Board. The Board believes that his detailed knowledge of Directors, assesses the suitability and independence of the Group’s business and his external experience continue potential candidates to be appointed as Independent to be of significant benefit to the Company, and that he Non-Executive Directors and reviews the independence maintains an independent view of its affairs. of each Independent Non-Executive Director annually. Taking into account all of the circumstances described in The Independent Non-Executive Directors meet with this section, the Company considers all of the Independent the Chairman at least once annually without the Non-Executive Directors to be independent as regards the presence of other Directors and they can interact with factors in Rule 3.13 of the Listing Rules. management and other Directors including the Chairman through formal and informal means. Responsibilities of Directors Independent professional advice is also available to all Directors whenever necessary. A review of these On appointment, the Directors receive information about mechanisms is conducted on an annual basis to ensure the Group including: their effectiveness. • the role of the Board and the matters reserved for The Independent Non-Executive Directors: its attention • provide open and objective challenge to • the role and terms of reference of Board committees management and other Board members • the Group’s corporate governance practices • raise intelligent questions and challenge and procedures constructively and with vigour • the powers delegated to management • bring outside knowledge of the businesses and • the latest financial information markets in which the Group operates, providing Directors update their skills, knowledge and understanding informed insight and responses to management of the Company’s businesses through their participation at Confirmation has been received from all Independent meetings of the Board and its committees and through Non-Executive Directors that they are independent as regular meetings with management at the head office and regards the factors in Rule 3.13 of the Listing Rules. in the divisions. Directors are regularly updated by the None of them holds cross-directorships or has Company Secretary on their legal and other duties as Directors of a listed company. 94

SWIRE PROPERTIES ANNUAL REPORT 2023 OTHER LISTED COMPANY DIRECTORSHIP S 2 Number of Companies 1 0 0 2 4 6 8 10 Number of Directors Through the Company Secretary, Directors are able to Board decisions are made by vote at Board meetings and obtain appropriate professional training and advice. supplemented by the circulation of written resolutions Each Director ensures that he/she can give sufficient between Board meetings. time and attention to the affairs of the Group. All Minutes of Board meetings are taken by the Company Directors disclose to the Board on their first appointment Secretary and, together with any supporting papers, are their interests as a Director or otherwise in other made available to all Directors. The minutes record the companies or organisations and such declarations of matters considered by the Board, the decisions reached, interests are updated regularly. No Director was a and any concerns raised or dissenting views expressed by director of more than two other listed companies Directors. Draft and final versions of the minutes are sent to (excluding the Company) at 31st December 2023. all Directors for their comment and records respectively. Details of Directors’ other appointments are shown in Board meetings are structured so as to encourage open their biographies in the section of this annual report discussion, frank debate and active participation by headed Directors and Officers. Directors in meetings. Board Processes Directors meet at least once annually to discuss the Company’s strategy, including investment and All committees of the Board follow the same processes divestment plans and other strategic initiatives. The as the full Board. strategy session also serves as a platform for raising The dates of the 2023 Board meetings were determined new initiatives and ideas. in 2022 and any amendments to this schedule were The executive management provides the Board with such notified to Directors at least 14 days before regular information and explanations as are necessary to enable meetings. Appropriate arrangements are in place to Directors to make an informed assessment of the financial allow Directors to include items in the agenda for regular and other information put before the Board. Queries raised Board meetings. by Directors are answered fully and promptly. Agendas and accompanying Board papers are circulated When necessary, the Independent Non-Executive Directors with sufficient time to allow the Directors to prepare meet privately to discuss matters which are their specific before meetings. responsibility. The Chairman takes the lead to ensure that the Board The Chairman meets at least annually with the acts in the best interests of the Company, that there is Independent Non-Executive Directors without the effective communication with the shareholders and that presence of other Directors. their views are communicated to the Board as a whole. 95

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE Board Activities The Board met six times in 2023, including a strategy session. The attendance of individual Directors at meetings of the Board and its committees is set out in the table below. Attendance at Board meetings was 100%. All Directors attended Board meetings in person or through electronic means of communication during the year. Continuous Professional Meetings Attended/Held Development 2023 Annual Type of Audit Nomination Remuneration General Training Directors Board Committee Committee Committee Meeting (Notes) Executive Directors Guy Bradley – Chairman 6/6 √ A, B Tim Blackburn 6/6 √ A, B Fanny Lung 6/6 √ A, B Mabelle Ma 6/6 √ A, B Non-Executive Directors Adam Fenwick 6/6 1/1 2/2 √ A, B Raymond Lim 6/6 √ A, B Martin Murray 6/6 4/4 √ A, B Richard Sell (appointed on 17th October 2023) 1/1 N/A A, B Merlin Swire 6/6 √ A, B Independent Non-Executive Directors Lily Cheng 6/6 4/4 √ A, B Thomas Choi 6/6 1/1 2/2 √ A, B Spencer Fung 6/6 1/1 2/2 √ A, B Jinlong Wang (retired on 9th May 2023) 2/2 X A May Wu 6/6 4/4 √ A, B Angela Zhu (appointed on 9th May 2023) 4/4 N/A A, B Average attendance 100% 100% 100% 100% 92% Notes: A: Received training materials about matters relevant to their duties as Directors including on ESG. B: Attended training by external advisers about applicable laws and regulations and topics pertinent to the business of the Company. 96

SWIRE PROPERTIES ANNUAL REPORT 2023 Key areas of activities of the Board during the year are summarised below. Leadership and People • Reviewed the structure, size, composition of the Board and the independence of the INEDs • Discussed updates from the Nomination Committee on matters including the Company’s progress in achieving measurable objectives on board diversity, updates on employee diversity and the implementation and effectiveness of the Group’s diversity policy • Considered and approved the recommendations from the Nomination Committee on re-election of Directors at the 2023 Annual General Meeting • Discussed updates from the Remuneration Committee on matters including compensation of the Executive Directors and senior management of the Company, gender pay equity and CEO pay ratio of the Group Strategy • Discussed the Group’s 10-year plan regarding its 2024-2033 business strategies and projections • Discussed the Group’s investment and divestment strategies • Considered and approved the Group’s investments, acquisitions or disposals, overall portfolio direction and investment plans, capital allocation strategy and growth objectives • Reviewed the Group’s progress under the HK$100 billion investment plan • Discussed updates on the Group’s geographic portfolio and macro-economic developments Financial and Business • Reviewed and approved the interim and annual results announcements as well as Performance the interim and annual reports • Discussed and approved the 2023 annual budget and longer-term financial plans • Reviewed business updates and operating results of the Group, its operating environment and performance outlook • Reviewed implementation status of the Group’s capital allocation strategy • Discussed development progress of projects and investments • Approved and declared the second interim dividend for 2022 and the first interim dividend for 2023 • Reviewed and approved the Group’s major financing arrangements and fund- raising activities 97

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE Audit, Risk Management and • Discussed updates from the Audit Committee on matters relating to results Internal Control announcements and annual/interim reports, compliance with regulatory and statutory requirements, reviewed the effectiveness of the Company’s risk management process and internal control systems, findings from GIAD, significant accounting and audit issues and codes and policies of the Company • Approved the Group’s 2024 audit strategy and reviewed progress on the 2023 audit programme • Reviewed the Group’s corporate risk register and key items including geopolitical risks, cybersecurity risks, sustainability-related risks and other major risks, and discussed the relevant risk management measures • Discussed the digital strategy and data governance of the Group • Reviewed the Group’s health and safety performance, including its performance in meeting safety targets, hazards reporting system, safety management measures and health and well-being initiatives Governance and Compliance • Chairmen of the various Board committees updated the Board on their committee meetings, including key matters discussed, and issues raised in the meetings • Reviewed the continuing connected transactions conducted by the Group • Reviewed and approved regulatory announcements to be published by the Company • Reviewed updates on the Company’s legal and compliance matters • Reviewed the terms of reference adopted by the Company • Received declarations of interest from Directors Sustainability • Reviewed and approved the Sustainable Development Report 2022 of the Company • Discussed the Group’s progress towards meeting the decarbonisation and other ESG targets under SD 2030 Strategy, performance in key sustainability indices, regulatory developments towards sustainability, climate-related and other key ESG matters 98

SWIRE PROPERTIES ANNUAL REPORT 2023 Continuous Professional Development The Board monitors management’s performance against The Company makes available continuous professional the achievement of financial and non-financial measures, development for all Directors at the expense of the the principal items monitored being: Company so as to develop and refresh their knowledge • detailed monthly management accounts consisting of and skills. statements of profit or loss, financial position and cash All Directors have been provided with “A Guide on flows compared to budget, together with forecasts Directors’ Duties” issued by the Companies Registry, • internal and external audit reports “Guidelines for Directors” issued by the Hong Kong • feedback from customers, others with whom Institute of Directors and “Corporate Governance Guide the Group does business, trade associations and for Boards and Directors” issued by The Stock Exchange service providers. of Hong Kong Limited and other training materials on Securities Transactions various topics, including ESG matters and regulatory updates issued by The Stock Exchange of Hong Kong The Company has adopted a code of conduct (the Limited or external advisers. They were invited to attend “Securities Code”) regarding securities transactions by seminars and conferences about financial, commercial, Directors and officers on terms no less exacting than the economic, risk management, legal, regulatory and other required standard set out in the Model Code for Securities business matters. Transactions by Directors of Listed Issuers (the “Model Code”) contained in Appendix C3 to the Listing Rules. Directors’ and Officers’ Insurance These rules are available on the Company’s website. The Company has arranged appropriate insurance cover A copy of the Securities Code has been sent to each in respect of potential legal actions against its Directors Director of the Company and is sent to each Director and Officers. twice annually, immediately before the two financial period ends, with a reminder that the Director cannot Conflicts of Interest deal in the securities and derivatives of the Company If a Director has a material conflict of interest in relation during the blackout period before the Group’s interim and to a transaction or proposal to be considered by the annual results have been published, and that all their Board, the individual is required to declare such interest dealings must be conducted in accordance with the and abstains from voting. The matter is considered at a Securities Code. Board meeting and voted on by Directors who have no Under the Securities Code, Directors and senior material interest in the transaction. executives of the Company are required to notify the Chairman and receive a dated written acknowledgement Delegation by the Board before dealing in the securities and derivatives of the Responsibility for delivering the Company’s strategies Company and, in the case of the Chairman himself, he and objectives, as established by the Board, and must notify the Chairman of the Audit Committee and responsibility for day-to-day management is delegated receive a dated written acknowledgement before to the Chief Executive. The Chief Executive has been any dealing. given clear guidelines and directions as to his powers On specific enquiries made, all the Directors of the and, in particular, the circumstances under which he Company have confirmed that they have complied with should report back to, and obtain prior approval from, the required standard set out in the Model Code and the the Board before making commitments on behalf of Securities Code. the Company. Directors’ interests at 31st December 2023 in the shares of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance) are set out in the section of this annual report headed Directors’ Report. 99

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE Appointment and Re-election On 4th March 2024, the Nomination Committee, having Potential new Directors are identified and considered by reviewed the Board’s composition and after taking into the Nomination Committee for appointment by the Board. account the requirement that all directors are subject to A Director appointed by the Board is subject to election election or re-election (as the case may be) in accordance by shareholders at the first annual general meeting after with the Company’s Articles of Association, nominated his or her appointment, and all Directors are subject to Fanny Lung, Martin Murray, Richard Sell and Angela Zhu for re-election by shareholders every three years. recommendation to shareholders for election or re-election at the 2024 Annual General Meeting. The nominations were Potential new Board members are identified on the basis made in accordance with objective criteria (including of skills, knowledge and experience which, on assessment gender, age, cultural and educational background, by the Directors, will enable them to make a positive ethnicity, professional experience, skills, knowledge, length contribution to the diversity and performance of the of service, number of directorships of listed companies and Board. The Company reviews the composition of the the legitimate interests of the Company’s principal Board on a continuing basis by keeping track of the shareholders), with due regard for the benefits of diversity, tenure of Directors and the need for new or replacement as set out in the Board Diversity Policy. The Nomination Directors to be appointed (as the case may be) and Committee is satisfied with the independence of Angela maintaining a pipeline of candidates comprising internal Zhu having regard to the criteria set out in the Listing Rules. and external candidates as may be identified from time The Board, having considered the recommendation of the to time. Executive search agencies may be engaged as Nomination Committee and having taken into account the appropriate to identify external candidates with the respective contributions of Fanny Lung, Martin Murray, desirable skillsets. The composition of the Board includes Richard Sell and Angela Zhu to the Board and their firm directors who are appointed as independent non- commitment to their roles, recommended all of them for executive directors, nomination from substantial election or re-election (as the case may be) at the 2024 shareholder and executives of the Company. Annual General Meeting. The particulars of the Directors In assessing the suitability of a proposed candidate standing for election or re-election are set out in the (including Directors eligible for election or re-election), section of this annual report headed Directors and Officers the following non-exhaustive list of factors will be and will also be set out in the circular to shareholders to be considered: distributed with this annual report and posted on the Company’s website. • the corporate strategy of the Company Full details of changes in the Board during the year and to • the structure, size, composition and needs of the Board the date of this report are provided in the section of this • the potential contributions a candidate can bring to the annual report headed Directors’ Report. Board, including the desirable skillsets, experience and other attributes that are complementary to the Board Board Diversity • the qualifications, integrity and expected time commitment of the candidate The Board has adopted a Board Diversity Policy, which is • various aspects of diversity (including gender, age, available on the Company’s website. Responsibility for the cultural and educational background and ethnicity) implementation, monitoring and annual review of this with reference to the Board Diversity Policy of the policy has been delegated to the Nomination Committee. Company • the independence of a candidate to be appointed as an Independent Non-Executive Director 100

SWIRE PROPERTIES ANNUAL REPORT 2023 The Board’s composition reflects a balance of skills, experience and diversity of perspectives among its members that are relevant to the Company’s strategy, governance and business and contributes to the Board’s effectiveness. SKILLS, EXPERTISE AND EXPERIENCE Related Industry Experience 13 (Real Estate/Hotels/Retail) Executive Leadership 14 and Strategy Relevant Market Experience 14 Accounting/Finance and 10 Risk Management Digital 9 Executive Directors ESG 12 Non-Executive Directors out of 14 Directors Age Gender 21% 41-50 years 36% 36% 51-60 years Male 61-70 years Female 64% 43% Ethnicity Years of Service as Director 28% 3 years or below 36% 43% Non-Chinese 4-9 years 57% Chinese over 9 years 36% 101

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE In order to achieve a diversity of perspectives among The terms of reference of the Nomination Committee members of the Board, it is the policy of the Company to comply with the CG Code and are posted on the consider a number of factors when deciding on Company’s website. appointments to the Board and the continuation of those The Nomination Committee’s duties include: appointments. Such factors include gender, age, cultural and educational background, ethnicity, professional • to review the structure, size and composition (including experience, skills, knowledge, length of service and the the skills, knowledge and experience) of the Board at legitimate interests of the Company’s principal least annually and make recommendations on any shareholders. proposed changes to the Board to complement the The Board is committed to maintaining an appropriate Company’s corporate strategy percentage of female Board members, which shall be not • to identify individuals suitably qualified to become less than 30% at all times. board members and select or make recommendations to the Board on the selection of individuals nominated The Company is also committed to maintaining a gender for directorship balance in the workforce with a target of keeping the • to assess the independence of the Independent female ratio at not less than 40% at all times. Details of Non-Executive Directors gender diversity in the workforce are disclosed in the • to make recommendations to the Board on the section of this annual report headed Sustainable appointment or re-appointment of Directors and Development and in the Sustainability Report 2023 of succession planning for Directors, in particular the the Company. Chairman and the Chief Executive The Company has adopted the following measures to • to review the implementation and effectiveness of the develop a pipeline of potential successors to the Board: Company’s policy on board diversity on an annual basis • the Company keeps track of the tenure of Directors The Nomination Committee met once in 2023. A summary and the need for new or replacement directors to be of its work is as follows: appointed (as the case may be), and maintains a • conducted (i) an annual review of the structure, size running list of candidates comprising internal and and composition (including the skills, knowledge and external candidates as may be identified from time experience) of the Board and considered that the to time Board’s composition reflects an appropriate mix of skills, • principles and key criteria for evaluating candidates experience and diversity among its members that are for directorship are set out in the Nomination relevant to the Company’s strategy, governance and Committee’s terms of reference and the Company’s business and contributes to the Board’s effectiveness; Board Diversity Policy (ii) an annual assessment of the independence of • the skills and experience of existing Directors help set each Independent Non-Executive Director and the criteria for internal and external candidate search considered all of the Independent Non-Executive • executive search agencies may be engaged as Directors to be independent; and (iii) an annual appropriate to identify external candidates with review of the implementation and effectiveness of the desirable skillsets Company’s Board Diversity Policy and considered it to be appropriate Nomination Committee • reviewed the Board’s target of maintaining not less The Nomination Committee consists of three Non- than 30% of female Board members and considered it Executive Directors, Spencer Fung, Thomas Choi and Adam to be appropriate Fenwick. Two of the Committee members are Independent • made recommendations to the Board in respect of Non-Executive Directors, one of whom, Spencer Fung, is the proposed appointments of new Directors and the Chairman. All the members served for the whole of 2023. re-election of the Directors retiring at the 2023 Annual General Meeting 102

SWIRE PROPERTIES ANNUAL REPORT 2023 The Nomination Committee assessed the Board’s diversity taking into consideration salaries paid by comparable by reviewing a comparison against industry and peer group companies, time commitments and responsibilities and companies, and the relevant experience and skillsets of the employment conditions elsewhere in the Group. Directors. The Committee considered that: The terms of reference of the Remuneration Committee • the ratios for the objective criteria (e.g. age, gender and have been reviewed with reference to the CG Code and are ethnicity) amongst Board members were reasonable posted on the Company’s website. • the Company was in a good position in terms of gender In order to be able to attract and retain staff with the diversity compared with its peers appropriate skills, experience and of suitable calibre, the • the Board shall maintain not less than 30% of female Swire group provides a competitive remuneration package members on the Board designed to be commensurate, overall, with those of its Remuneration Committee peer group. This typically comprises salary, housing, retirement benefits, leave-passages and education Full details of the remuneration of the Directors are allowances and, after three years’ service, a discretionary provided in note 9 to the financial statements. bonus. Although the remuneration of executives is not The Remuneration Committee comprises three Non- entirely linked to the profits of the Company, it is Executive Directors, Spencer Fung, Thomas Choi and Adam considered that these arrangements have contributed Fenwick. Two of the Committee members are Independent considerably to the maintenance of a flexible, motivated Non-Executive Directors, one of whom, Spencer Fung, is and high-calibre management team within the Group. Chairman. All the members served for the whole of 2023. The Remuneration Committee reviewed the structure and The Remuneration Committee reviews and approves the levels of remuneration paid to Executive Directors at its remuneration proposals with respect to the Executive meeting in October 2023. At this meeting the Committee Directors and senior management of the Company, with considered a report prepared for it by Mercer Limited, an reference to the Company’s Remuneration Policy and the independent firm of consultants, which confirmed that the Board’s corporate goals and objectives. remuneration of the Company’s Executive Directors was competitive with that paid to equivalent executives in peer The Remuneration Committee exercises the powers of the group companies. Board to determine the remuneration packages of No Director takes part in the determination of his or her individual Executive Directors (including salaries, bonuses, own remuneration. benefits in kind and the terms on which they participate in any provident fund or other retirement benefit scheme), The following fee levels have been approved by the Board: 2023 2024 Fee HK$ HK$ Director’s Fee 575,000 575,000 Fee for Audit Committee Chairman 268,000 268,000 Fee for Audit Committee Member 186,000 186,000 Fee for Nomination Committee Chairman 83,000 83,000 Fee for Nomination Committee Member 60,000 60,000 Fee for Remuneration Committee Chairman 83,000 83,000 Fee for Remuneration Committee Member 60,000 60,000 Details of emoluments paid to each Director in 2023 are set out in note 9 to the financial statements. 103

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE Accountability and Audit example from the Board down. The Company has a Financial Reporting Corporate Code of Conduct, which is posted on its website. The Board acknowledges its responsibility for: The Company is committed to developing and maintaining high professional and ethical standards. These are • the proper stewardship of the Company’s affairs, reflected in the rigorous selection process and career to ensure the integrity of financial information development plans for all employees. The organisation • preparing annual and interim financial statements and prides itself on being a long-term employer which instills other related information that give a true and fair view of in individuals, as they progress through the Group, a the Group’s affairs and of its results and cash flows for thorough understanding of the Company’s ways of thinking the relevant periods, in accordance with Hong Kong and acting. Financial Reporting Standards and the Hong Kong Channels of communication are clearly established, Companies Ordinance allowing employees a means of communicating their views • selecting appropriate accounting policies and ensuring upwards with a willingness on the part of more senior that these are consistently applied personnel to listen. Employees are aware that, whenever • making judgements and estimates that are prudent the unexpected occurs, attention should be given not only and reasonable to the event itself, but also to determining the cause. • ensuring that the application of the going concern Through the Company’s Corporate Code of Conduct, assumption is appropriate employees are encouraged (and instructed as to how) to Risk Management and Internal Control report control deficiencies or suspicions of impropriety to The Board acknowledges its responsibility to establish, those who are in a position to take necessary action. The maintain and review the effectiveness of the Group’s risk Company has a Whistleblowing Policy and system for management and internal control systems. This employees and those who deal with the Group to raise responsibility is primarily fulfilled on its behalf by the Audit concerns, in confidence and with anonymity, where Committee as discussed on pages 105 to 106. desired, about actual or suspected cases of impropriety in any matter related to the Group. The policy is available on The foundation of strong risk management and internal the Company’s website. control systems is dependent on the ethics and culture of The Company has an Anti-Bribery and Corruption Policy the organisation, the quality and competence of its which sets out the Company’s policy and systems that personnel, the direction provided by the Board, and the promote and support compliance with applicable anti- effectiveness of management. bribery and corruption laws and regulations, and enhances Since profits are, in part, the reward for successful risk the provisions relating to bribery and corruption in the taking in business, the risk management and internal Company’s Corporate Code of Conduct. The policy is control systems are designed to manage rather than available on the Company’s website. eliminate the risk of failure to achieve business objectives Risk assessment: The Board of Directors and the and can only provide reasonable and not absolute management each have a responsibility to identify and assurance against material misstatement or loss. analyse the risks underlying the achievement of business The key components of the Group’s control structure are objectives, and to determine how such risks should be as follows: managed and mitigated. Culture: The Board believes that good corporate The Company has implemented the three lines of defence governance reflects the culture of an organisation. This is model of risk governance which is designed to minimise more significant than any written procedures. conflicts of interest and ensure independent oversight of The Company aims at all times to act ethically and with risk management. Details of the three lines of defence integrity, and to instill this behaviour in all its employees by model are set out in the section of this annual report headed Risk Management. 104

SWIRE PROPERTIES ANNUAL REPORT 2023 Management structure: The Group has a clear The Company has in place effective processes and systems organisational structure that, to the extent required, for the identification, capture and reporting of operational, delegates the day-to-day responsibility for the design, financial and compliance-related information in a form and documentation and implementation of procedures and time-frame intended to ensure that staff carry out their monitoring of risk. Individuals appreciate where they will be designated responsibilities. held accountable in this process. Internal audit: Independent of management, the Group A control self-assessment process requires management to Internal Audit Department (“GIAD”) reports directly to the assess, through the use of detailed questionnaires, the Audit Committee and performs regular reviews of key risk adequacy and effectiveness of risk management and areas and monitors compliance with Group accounting, internal controls over the reliability of financial reporting, financial and operational procedures. The role of GIAD is the effectiveness and efficiency of operations and discussed further on pages 106 to 107. compliance with applicable laws and regulations. This process and its results are reviewed by internal auditors Audit Committee and form part of the Audit Committee’s annual assessment The Audit Committee, consisting of three Non-Executive of control effectiveness. Directors, May Wu, Lily Cheng and Martin Murray, assists Controls and review: The control environment comprises the Board in discharging its responsibilities for corporate policies and procedures intended to ensure that relevant governance and financial reporting. Two of the Committee management directives are carried out and actions that members are Independent Non-Executive Directors, one of may be needed to address risks are taken. These may whom, May Wu, is Chairman. All the members served for include approvals and verifications, reviews, safeguarding the whole of 2023. of assets and segregation of duties. Control activities can The terms of reference of the Audit Committee follow the be divided into operations, financial reporting and guidelines set out by the Hong Kong Institute of Certified compliance, although there may, on occasion, be some Public Accountants and comply with the CG Code. They are overlap between them. The typical control activities available on the Company’s website. include: • analytical reviews: for example, conducting reviews of The Audit Committee met four times in 2023. Regular actual performance versus budgets, forecasts, prior attendees at the meetings are the Finance Director, periods and competitors the Financial Controller, the Group Head of Internal Audit, • direct functional or activity management: reviews of the Digital and IT Director and the external auditors. performance reports, conducted by managers in charge The Audit Committee meets at least twice a year with the of functions or activities external auditors, and at least once a year with the Group • information-processing: performing controls intended Head of Internal Audit, in each case without the presence to check the authorisation of transactions and the of management. Each meeting receives written reports accuracy and completeness of their reporting, from the external auditors and GIAD. The external valuer for example, exception reports (Cushman & Wakefield Limited) also attended two of the • physical controls: ensuring equipment, inventories, meetings. securities and other assets are safeguarded and The work of the Committee during 2023 included reviews subjected to periodic checks of the following matters: • performance indicators: carrying out analyses of • the completeness, accuracy and integrity of formal different sets of data, operational and financial, announcements relating to the Group’s performance examining the relationships between them, and taking including the 2022 annual and 2023 interim reports and corrective action where necessary announcements, with recommendations to the Board • segregation of duties: dividing and segregating duties for approval among different people, with a view to strengthening • the Group’s compliance with regulatory and statutory checks and minimising the risk of errors and abuse requirements 105

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE • the Group’s risk management and internal • the incidence of any significant control failings or control systems weaknesses that have been identified at any time • the Group’s risk management processes during the period and the extent to which they have • the Group’s cybersecurity resulted in unforeseen outcomes or contingencies that • the approval of the 2024 annual internal audit have had, could have had, or may in the future have, programme and review of progress on the a material impact on the Company’s financial 2023 programme performance or condition • periodic reports from GIAD and progress in resolving any • the effectiveness of the Company’s processes in matters identified in them relation to financial reporting and statutory and • significant accounting and audit issues regulatory compliance • the Company’s policy regarding connected transactions • areas of risk identified by management and the nature of such transactions • significant risks reported by GIAD • the relationship with the external auditors as discussed • work programmes proposed by GIAD and the on pages 107 to 108 external auditors • the Company’s compliance with the CG Code • significant issues arising from internal and external • the Company’s code and policies audit reports In 2024, the Committee has reviewed, and recommended • the results of management’s control self-assessment to the Board for approval, the 2023 financial statements. exercise As a result of the above review, the Board confirms, and Assessing the Effectiveness of Risk management has also confirmed to the Board, that the Management and Internal Control Systems Group’s risk management and internal control systems On behalf of the Board, the Audit Committee reviews are effective and adequate and have complied with the annually the continued effectiveness of the Group’s risk CG Code provisions on risk management and internal management and internal control systems dealing with risk control throughout the year and up to the date of this and financial accounting and reporting, the effectiveness annual report. and efficiency of operations, compliance with laws and Company Secretary regulations, and risk management functions. This assessment considers: The Company Secretary is an employee of the Company and is appointed by the Board. The Company Secretary is • the scope and quality of management’s ongoing responsible for facilitating the Board’s processes and monitoring of risks (including ESG risks) and of the risk communications among Board members, with management and internal control systems, the work and shareholders and with management. The Company effectiveness of internal audit and the assurances Secretary undertakes at least 15 hours of relevant provided by the Finance Director professional training annually to update skills and • the changes in the nature and extent of significant risks knowledge. (including ESG risks) since the previous review and the Group’s ability to respond to changes in its business and Group Internal Audit Department the external environment The Swire group has had GIAD in place for 28 years. GIAD • the extent and frequency with which the results of plays a critical role in monitoring the governance of the monitoring are communicated, enabling the Committee Group. The department is staffed by 26 audit professionals to build up a cumulative assessment of the state of and conducts audits of the Group and of other companies control in the Group and the effectiveness with which in the Swire group. The 26 professionals include a team risk is being managed based in the Chinese Mainland which reports to the Group Head of Internal Audit in Hong Kong. 106

SWIRE PROPERTIES ANNUAL REPORT 2023 GIAD reports directly to the Audit Committee without the Management is required to provide action plans in need to consult with management, and via the Audit response to internal audit recommendations, including Committee to the Board. GIAD has unrestricted access to those aimed at resolving material internal control defects. all areas of the Group’s business units, assets, records and These are agreed by GIAD, included in its reports and personnel in the course of conducting its work. followed up with a view to ensuring that they are The annual internal audit programme and resources are satisfactorily undertaken. reviewed and agreed with the Audit Committee. External Auditors Scope of Work The Audit Committee acts as a point of contact, Business unit audits are designed to provide assurance that independent from management, with the external the risk management and internal control systems of the auditors (the “auditors”). The auditors, Company are implemented properly and operating PricewaterhouseCoopers, have direct access to the effectively, and that the risks associated with the Chairman of the Audit Committee, who meets with them achievement of business objectives are being properly periodically without management present. identified, monitored and managed. The Audit Committee’s duties in relation to the The frequency of each audit is determined by GIAD using auditors include: its own risk assessment methodology, which is based on • recommending to the Board, for approval by the COSO (Committee of Sponsoring Organizations of the shareholders, the auditors’ appointment Treadway Commission) internal control framework, • approval of the auditors’ terms of engagement considering such factors as recognised risks, organisational • consideration of the letters of representation to be change, overall materiality of each unit, previous internal provided to the auditors in respect of the interim and audit results, external auditors’ comments, output from annual financial statements the work of the Swire Pacific Group Risk Management • review of reports and other ad-hoc papers from Committee and management’s views. Each business unit is the auditors typically audited at least once every three years. Acquired • annual appraisal of the quality and effectiveness of businesses would normally be audited within 12 months. the auditors 16 assignments were conducted for Swire Properties • assessment of the auditors’ independence and in 2023. objectivity, including the monitoring of non-audit In addition, GIAD assists the Audit Committee in carrying services provided, with a view to ensuring that their out the analysis and independent appraisal of independence and objectivity are not, and are not seen the adequacy and effectiveness of the Group’s risk to be, compromised management and internal control systems through its • approval of audit and non-audit fees review of the process by which management has Auditors’ Independence completed the annual Control Self-Assessment, and the results of this assessment. Independence of the auditors is of critical importance to Furthermore, GIAD conducts ad-hoc projects and the Audit Committee, the Board and shareholders. The investigative work as may be required by management or auditors write annually to the members of the Audit the Audit Committee. Committee confirming that they are independent accountants in accordance with the Code of Ethics for Audit Conclusion and Response Professional Accountants of the Hong Kong Institute of Copies of internal audit reports are sent to the Chairman of Certified Public Accountants and that they are not aware of the Board, the Chief Executive, the Finance Director and any matters which may reasonably be thought to bear on the external auditors. The results of each review are also their independence. The Audit Committee assesses the presented to the Audit Committee. independence of the auditors by considering and discussing each such letter (and having regard to the fees payable to the auditors for audit and non-audit work and the nature of the non-audit work) at a meeting of the Audit Committee. 107

CORPORATE GOVERNANCE & SUSTAINABILITY CORPORATE GOVERNANCE Provision of Non-audit Services Shareholders In deciding whether the auditors should provide non-audit Communication with Shareholders services the following key principles are considered: and Investors • the auditors should not audit their own firm’s work The Board and senior management recognise their • the auditors should not make management decisions responsibility to represent the interests of all shareholders • the auditors’ independence should not be impaired and to maximise shareholder value. Communication with • quality of service shareholders and accountability to shareholders is a high In addition, the Company has a protocol in place for priority of the Company. approval of the provision of non-audit services by the The Company has a Shareholders’ Communication auditors. Any services which may be considered to be in Policy which is available on the Company’s website. conflict with the role of the auditors must be submitted to The Shareholders’ Communication Policy aims to ensure the Audit Committee for approval prior to engagement, that shareholders and the investment community are regardless of the amounts involved. The protocol is provided with appropriate and timely access to material updated from time to time to ensure compliance. information about the Company. It sets out the Company’s Fees paid to the auditors are disclosed in note 7 to the framework for promoting effective communication with its financial statements. shareholders so as to enable them to exercise their rights as shareholders in an informed manner, and to allow Inside Information the investment community to engage actively with With respect to procedures and internal controls for the Company. the handling and dissemination of inside information, The methods used to communicate with shareholders the Company: include the following: • is required to disclose inside information as soon as • the Chief Executive and Finance Director make reasonably practicable in accordance with the Securities themselves available for meetings with major and Futures Ordinance and the Listing Rules shareholders, investors and analysts over two-month • conducts its affairs with close regard to the “Guidelines periods immediately after the announcement of the on Disclosure of Inside Information” issued by the interim and annual results and at certain other times Securities and Futures Commission during the year. In addition, they attended regular • has included in its Corporate Code of Conduct a strict meetings with analysts and investors in Hong Kong, prohibition on the unauthorised use of confidential or analyst briefings, investor group briefings, overseas inside information roadshows and investor conferences during the year • ensures, through its own internal reporting processes • through the Company’s website. This includes electronic and the consideration of their outcome by senior copies of financial reports, webcasts of analyst management, the appropriate handling and presentations given at the time of the interim and dissemination of inside information annual results announcements, slides of presentations given at investor conferences, latest news, public announcements and general information about the Group’s businesses • through publication of interim and annual reports • through the annual general meeting as discussed below and other general meetings that may be convened 108

SWIRE PROPERTIES ANNUAL REPORT 2023 Shareholders may send their enquiries and concerns Dividend Policy to the Board by post or email at [email protected]. The Company has a policy on the payment of dividends, The relevant contact details are set out in the Financial which is set out in the section of this annual report headed Calendar and Information for Investors section of Directors’ Report. this annual report. The Company’s Shareholders’ Communication Policy also sets out channels for Shareholder Engagement shareholders to communicate their views on various matters. Pursuant to Article 95 of the Company’s Articles of The Audit Committee reviews the implementation and Association, if a shareholder wishes to propose a person effectiveness of the Shareholders’ Communication Policy other than a retiring Director for election as a Director at a annually. Having considered the multiple channels of general meeting, he or she should deposit a written notice communication in place as described above, it is satisfied of nomination at the registered office of the Company that the Shareholders’ Communication Policy has been within the 7-day period commencing on and including the properly implemented and is effective. day after the despatch of the notice of the meeting. The procedures for nominating candidates to stand for election The Annual General Meeting as Directors at general meetings are set out in the Corporate Governance section of the Company’s website. The annual general meeting is an important forum to If they wish to propose a resolution relating to other engage with shareholders. The most recent annual general matters to be considered at a general meeting, meeting was held on 9th May 2023. The meeting was open shareholders are requested to follow the requirements and to shareholders. The Directors who attended the meeting procedures set out in the Corporate Governance section of are shown in the table on page 96. the Company’s website. At the annual general meeting, separate resolutions Shareholder(s) representing at least 5% of the total voting were proposed for each issue and were voted on by poll. rights of all members may request the Board to convene a The procedures for conducting a poll were explained general meeting. The objects of the meeting must be at the meeting prior to the polls being taken. The agenda stated in the related requisition deposited at the items were: Company’s registered office. Detailed requirements and • receiving the report of the Directors and the procedures are set out in the Corporate Governance audited financial statements for the year ended section of the Company’s website. 31st December 2022 • electing/re-electing Directors Other Information for Shareholders • re-appointing the auditors and authorising the Directors Key shareholder dates for 2024 are set out in the section of to set their remuneration this annual report headed Financial Calendar and • a general mandate authorising the Directors to make Information for Investors and in the Financial Calendar on on-market share buy-backs the Company’s website. • a general mandate authorising the Directors to allot and issue shares up to 20% of the number of shares then in No amendment has been made to the Company’s Articles issue, provided that the aggregate number of the shares of Association during the year. so allotted wholly for cash would not exceed 5% of the From information publicly available to the Company and number of the shares then in issue within the knowledge of its Directors, at least 10.28% Minutes of the meeting together with voting results are (being the minimum public float percentage which the available on the Company’s website. Company is required to maintain) of the Company’s total number of issued shares are held by the public. Details of substantial shareholders’ and other interests are included in the section of this annual report headed Directors’ Report. 109

RISK MANAGEMENT The Board is responsible for determining the Risk Appetite Risk Appetite and maintaining the Risk Governance Structure that The Board acknowledges its responsibility to determine the facilitate the Risk Management Process to identify and nature and extent of the risks the Company is willing to analyse the Risk Profile underlying for the achievement of take in achieving the Company’s strategic objectives whilst business objectives of the Company, and to determine how not exposing the Company to excessive risk of financial such risks should be managed and mitigated. The Board losses, business disruption, negative reputation, regulatory oversees management in the design, implementation and incompliance and people’s health and safety. The monitoring of the risk management and internal control Company has established and maintains an appropriate systems, and management provides confirmations to the and effective risk management process and internal control Board on the effectiveness of these systems. systems to retain only risks that are manageable and at a The effectiveness of the risk management process and reasonable level. In alignment with our risk appetite, the internal control systems is subject to audit by internal Company has established a risk assessment matrix and audit, with support from external specialists where corporate risk register to evaluate and prioritise the key necessary. risks by taking into account of both financial and non- Further discussion of risk management is set out in the financial impact, as well as impact to our Sustainable sections of the Corporate Governance Report headed Development 2030 (“SD 2030”) strategy. Moreover, the “Accountability and Audit – Risk Management and Internal Company’s vulnerability and exposure to the key risks are Control”, “Audit Committee – Assessing the Effectiveness of assessed regularly to ensure that the appropriate internal Risk Management and Internal Control Systems” and controls and mitigating measures are in place for “Group Internal Audit Department – Scope of Work” on preventing and responding to any major incidents. pages 104 to 105, page 106 and page 107 respectively. 110

SWIRE PROPERTIES ANNUAL REPORT 2023 Risk Governance Structure Board of Directors Audit Committee Executive Committee ESG Steering Committee Functional/ Portfolio Directors Investment SD 2030 Places Committee Working Group Joint Venture SD 2030 People Management Working Group Committee Internal Risk Information SD Audit Business Management Technology Digital Communication SD 2030 Partners Units Team Steering Committee & Engagement Working Group and Committee Working Safety Management SD 2030 Performance Committees System Steering (Environment) Committee Working Group Business Recovery SD 2030 Performance Team (Economic) Working Group FIRST LINE OF SECOND LINE THIRD LINE OF DEFENCE OF DEFENCE DEFENCE 111

CORPORATE GOVERNANCE & SUSTAINABILITY RISK MANAGEMENT The Board has ultimate responsibility for risk management, issues are conducted by ExCom as appropriate. Matters of overseeing its design and implementation. The Board is significance that arise are reported as appropriate to the supported by the Audit Committee. Audit Committee and ultimately to the Board of Directors. The Company has implemented the three lines of defence ExCom is supported by committees with specialisation in model of risk governance. The model is designed to respective corporate and operating functions across the minimise conflicts of interest and ensure independent Company including investment appraisal, joint venture oversight of risk management. management, health and safety, crisis management, In the first line of defence, the management of each information security and data protection. ExCom is also business and operating unit identifies, analyses and reports supported by the risk management team headed by the on the risks for which it is responsible. Risks are mitigated, Finance Director. In relation to the Company’s SD 2030 minimised and eliminated, where practicable and Strategy, the Environmental, Social and Governance economically viable. Where risk cannot be eliminated, the (“ESG”) Steering Committee has been set up and reports to related economic returns are required to reflect the level of the Board. ESG Steering Committee is supported by risk retained. The first line of defence is supervised by the working groups to manage the ESG risks with respect to the functional heads and portfolio directors. five SD pillars: places, people, partners, environmental and economic performances; and the SD Communication & The second line of defence led by the Executive Committee Engagement Committee to oversee the implementation of (“ExCom”) supports the first line and provides assurance to communication and engagement initiatives. The Chairman the Board that risk is being managed effectively. The of the Audit Committee, who is also an independent ExCom chaired by the Chief Executive (also acting in the non-executive director of the Company and reports to the capacity of Executive Director) comprises two other Board, is a member of the ESG Steering Committee. Details Executive Directors and seven senior executives. It of the responsibilities of each SD 2030 Working Groups are oversees all the risks to which the Company is subject and documented in the SD Governance section of our is responsible for the design, implementation and Sustainability Report 2023. monitoring of the relevant risk management processes and The third line of defence is provided by the Group Internal internal control systems of the Company. Among the Audit Department to assist the Audit Committee in carrying ExCom meetings, review of the corporate risk register will out analysis and independent assessment of the adequacy be periodically conducted to evaluate the Company’s risk and effectiveness of the risk management and the internal profile and exposure, to oversee the management of major control systems through a systematic review of the risks, to identify emerging risks and to analyse risk events processes and internal control. Details of the scope of work which materialise, with a view to their resolution and to is set out on page 107. learning from them. Sensitivity analysis or deep dive sessions on contemporary risk area such as geopolitical 112

SWIRE PROPERTIES ANNUAL REPORT 2023 Risk Management Process The following diagram illustrates the key risk management processes of the Company. Risks that impact the achievement of business objectives are identified by management and categorised with reference to a risk taxonomy. Risk Identification Risk assessment matrix is Adequacy and effectiveness Risk Risk established in accordance with the of risk management and internal Company’s Risk Appetite to controls are closely monitored Monitoring Analysis evaluate and prioritise the risks by management through in terms of impact and regular review exercise. vulnerability, and documented in corporate risk register. Risk Risk Reporting Mitigation Risks are regularly reviewed Internal control procedures and and reported to the Audit response protocols are designed, Committee and other relevant documented and implemented governing parties. to manage the risks and mitigate their impact. 113

CORPORATE GOVERNANCE & SUSTAINABILITY RISK MANAGEMENT Risk Profile The following table provides an overview of our key risk profile (listed in alphabetical order), including what we consider to be Swire Properties’ principal existing and emerging risks, possible impacts, risk trend and mitigating measures that are in place or under development. The Group’s approach to financial risk management is discussed in note 2 to the financial statements. Existing Risks and Possible Impacts Risk Trend Mitigation Measures Brand and image • Crisis communication and social media policies The failure to maintain brand position and are in place and are updated and tested regularly perception may make us less competitive. to ensure consistent, responsible and responsive Social media, in particular, is considered as a communication (including when handling major high velocity risk which, if not properly incidents) in order to safeguard the Company’s managed, may cause disproportionate reputation. negative impact on the Company’s brand, • Closely monitor social media in order to evaluate image and reputation. and provide responses to negative social media content. • Engagement with third parties to understand their perceptions of the Company and to anticipate current and potential economic, political, social or environmental issues that may adversely affect our reputation. Business disruption • A business recovery plan for major incidents, Severe disruption to the business caused by and other business compliance measures for acts of man or acts of nature such as specific scenarios, operational emergencies and extreme weather and pandemics may have health and safety, are in place and are regularly adverse financial effects on the Company. updated and tested. • Strategic plans are regularly reviewed to maintain business resilience and sustainability. • Conduct site surveys and consult professional advisors to ensure properties in earthquake and hurricane zones are built to meet the relevant building codes and safety standards. • Purchase insurance to the extent practicable to cover financial loss due to property damage, business interruption and third-party liabilities. Risk level increased during the year 2023 Risk level decreased during the year 2023 Risk level remained broadly the same 114

SWIRE PROPERTIES ANNUAL REPORT 2023 Existing Risks and Possible Impacts Risk Trend Mitigation Measures Business risks • Obtain suitable reserves of land, reinforce existing The lack of compelling development assets and actively explore investment opportunities projects may lead to a slowdown in business. especially to focus on strategic locations which will Disruptive business models, technologies bring synergy with the existing portfolios and prime and demographic factors are changing the locations with strong growth prospect. behaviour and needs of tenant rapidly, • Monitor and evaluate disruptive business models, leading to a new form of demand and with a view to making our operations more robust. space design. • Enhance competitiveness by increasing efficiency, using appropriate technology for customer proposition and operational procedures. Cybersecurity and data protection • Policies on information and cyber security are in Delay in the compliance of fast changing place with regular updates. regulatory requirements, insufficient data • Staff trainings, incident response drills and security protection system and policies may simulation tests are conducted regularly to raise the expose the Company to cyber-attack with awareness of data security across the Company. potential financial and reputational • Regular evaluation and upgrading of the latest consequences. technologies on information security. • Insurance policy for cyber and crime are in place to transfer the risk and to reduce financial losses. Development risks • Closely work with contractors to monitor and Delay in the completion of developments manage construction progress to avoid delays in may have an adverse financial effect by case of changing design and unexpected delaying the timing of property sales and circumstances. leasing. Cost inflation may also lead to • Stringent contractor prequalification requirements significant financial impact due to economic including financial position, manpower resources, volatilities, supply chain issues and labour resilience against geopolitical impact. shortage. • Build in contingencies for statutory approvals and communicate with government authorities on a timely basis. 115

CORPORATE GOVERNANCE & SUSTAINABILITY RISK MANAGEMENT Existing Risks and Possible Impacts Risk Trend Mitigation Measures Political risks • Regular review of investment strategy, business Changes in the global and local political model and capital allocation in response to any landscape, policies and priorities may have impact of international tensions and geopolitical risk. significant impact on the business • Maintain high level of sensitivities to political and environment. Geopolitical risk and social issues by closely monitoring social media and international tensions may impact the government policies with a timely response. maintenance of the optimal portfolio mix. • Engagement with government authorities to Any trade restrictions and international anticipate political developments in order to plan sanctions may adversely affect operating appropriate responses and to ensure compliance costs and tenant portfolio. with applicable laws and regulations. • Maintain robust corporate governance practice through oversight functions (internal audit, risk management, the company secretary, legal counsel and independent non-executive directors). • Conduct regular screening and monitoring on key business partners with reference to international sanctions. Third-party risks • Conduct proper due diligence for potential joint Misaligned interests, cultural fit and reneging venture partners and perform regular assessment on commitments of joint venture partners as to credit rating and business performance. may lead to project delays, financial and • Ensure a robust drafting of legal documents reputational impact. Changes in financial to include dispute resolution mechanism and position resulting in liquidity problems, exit strategy. changes in leadership and stance of joint • Ensure joint venture to adopt or to develop venture partners resulting in a withdrawal or corporate codes with the same standard as that reduction of their shareholdings, of Swire Properties. contribution and commitments. • Maintain robust governance structure to ensure open and timely discussions with joint venture partners by means of regular board meetings with proper agendas, maintenance of financial budgets, proper documentation of actions and responsibilities, pro-active partnership management and engagement to minimise miscommunication or disputes. 116

SWIRE PROPERTIES ANNUAL REPORT 2023 Emerging Risks and Possible Impacts Risk Trend Mitigation Measures Climate change • A Climate Change Policy is in place and is Extreme weather conditions and climate updated regularly. change may increase the risks of physical • Conduct climate risk assessments at all portfolios to damage to properties and adversely affect manage the risks and to explore the opportunities their valuation. arising from the transition to a target of net-zero carbon emission. • Science-based targets have been established to achieve long-term decarbonisation. • Monitor and reduce carbon emissions from construction activities and embodied carbon from major building and construction materials with the use of innovative technologies. • Piloting the use of internal carbon pricing (“ICP”) to determine the potential impacts of carbon emissions for our investments, quantify carbon risks to our business operations and better reallocate capital towards low-carbon investment and opportunities. Nature and biodiversity risks • A Biodiversity policy is in place and is updated Deteriorating natural environment and regularly. biodiversity loss may impact material • Participate in the Taskforce on Nature-related availability and adversely affect construction Financial Disclosures (TNFD) to formulate a global costs. Delay in response to growing market risk management and disclosure framework and demand for nature-inclusive design in contribute to collective nature-positive goals. properties may have adverse financial • Partner with university to conduct a biodiversity effects on the Company. assessment at our Hong Kong office portfolio to evaluate the state of urban biodiversity after the completion of the redevelopment and propose measures to further enhance urban biodiversity in future developments. • Conduct screening study of our global portfolio with biodiversity indicators to define a priority list and nature profile, and to identify the dependencies and impacts on natural assets and ecosystem services. • Explore opportunities to integrate nature-based solutions in future new development projects to further enhance urban biodiversity, increase climate resilience and promote tenant wellbeing. 117

DIRECTORS AND OFFICERS Executive Directors MA, Suk Ching Mabelle, aged 56, has been a Director of BRADLEY, Guy Martin Coutts, JP, aged 58, has been a the Company since August 2021. She is also the Director Director of the Company since January 2008 and its Development and Valuations of the Company. She joined Chairman since August 2021. He is also Chairman of John the Swire group in 1996. She is a chartered surveyor, a Swire & Sons (H.K.) Limited and Swire Pacific Limited, and member of The Royal Institution of Chartered Surveyors a Director of Cathay Pacific Airways Limited. He was the and a member of The Hong Kong Institute of Surveyors. Company’s Chief Executive from January 2015 to August She has worked in the real estate industry for over 30 years. 2021 and a Director of Swire Pacific Limited from January Non-Executive Directors 2015 to May 2017. He joined the Swire group in 1987 and has worked with the group in the Hong Kong SAR, Papua FENWICK, Nicholas Adam Hodnett, aged 63, has been a New Guinea, Japan, the United States, Vietnam, the Director of the Company since May 2018. He is also a Chinese Mainland, the Taiwan region and the Middle East. Director of John Swire & Sons Limited. He was employed by He is a chartered surveyor, a fellow of The Royal Institution the Swire group from 1985 to 1995 and worked for the of Chartered Surveyors and a member of The Hong Kong group in the Hong Kong SAR, Singapore, the Taiwan region, Institute of Surveyors. He is also Vice Chairman of the the Philippines and the United States. General Committee of The Hong Kong General Chamber of LIM, Siang Keat Raymond, aged 64, has been a Director of Commerce and Vice-President of The Real Estate the Company since July 2013. He is also Senior Adviser to Developers Association of Hong Kong. John Swire & Sons (H.K.) Limited. He is Non-Executive BLACKBURN, Timothy Joseph, aged 53, has been a Chairman of APS Asset Management Pte Ltd. He was a Director and Chief Executive of the Company since August Member of the Singapore Parliament from 2001 to 2015. 2021. He is also a Director of John Swire & Sons (H.K.) MURRAY, Martin James, aged 57, has been a Director of Limited. He joined the Swire group in 1994 and has worked the Company since April 2021. He is also Finance Director with the group in the Hong Kong SAR, Australia, Papua New of Swire Pacific Limited and a Director of John Swire & Sons Guinea, Singapore, London and the Chinese Mainland. (H.K.) Limited. He was previously a Director and Chief He is a chartered surveyor and a member of The Royal Financial Officer of Cathay Pacific Airways Limited and Institution of Chartered Surveyors. He is also a Global before that Deputy Finance Director of Swire Pacific Governing Trustee of the Urban Land Institute. Limited. He joined the Swire group in 1995 and has worked LUNG, Ngan Yee Fanny, aged 57, has been Finance with the group in the Hong Kong SAR, the United States, Director of the Company since October 2017. She was Singapore and Australia. He is a member of The Institute of previously Group Director Finance of Hong Kong Aircraft Chartered Accountants of Scotland and the Hong Kong Engineering Company Limited. She joined the Swire group Institute of Certified Public Accountants and a council in 1992. She is a member of the 8th Hainan Provincial member of The Hong Kong Management Association. Committee of the Chinese People’s Political Consultative SELL, Richard Lawrence, aged 47, has been a Director of Conference. She is also a member of the Hong Kong the Company since October 2023. He is also a Director of Institute of Certified Public Accountants, a member of the John Swire & Sons (H.K.) Limited, the Chief Executive Institute of Management Accountants, a fellow of the Officer of Hong Kong Aircraft Engineering Company Association of Chartered Certified Accountants and a Limited and a Director of Hong Kong Aero Engine Services member of the Financial Reporting Review Panel of the Limited. He was the Chief Executive Officer of Hong Kong Accounting and Financial Reporting Council. Aero Engine Services Limited from July 2021 to June 2023. He joined the Swire group in 1999 and has worked with the group in the Hong Kong SAR, Singapore, India and Europe. 118

SWIRE PROPERTIES ANNUAL REPORT 2023 SWIRE, Merlin Bingham, aged 50, has been a Director of WU, May Yihong, aged 56, has been a Director of the the Company since January 2009. He is also Deputy Company since May 2017. She is an Independent Director Chairman, Chief Executive Officer and a shareholder of of Noah Holdings Limited, the Chairwoman of its John Swire & Sons Limited and a Director of Cathay Pacific Compensation Committee and a member of its Audit Airways Limited and Swire Pacific Limited. He was Committee and Corporate Governance and Nomination Chairman of the Company and Swire Pacific Limited from Committee. Ms. Wu is also an Independent Non-Executive July 2018 to August 2021. He joined the Swire group in Director of Alibaba Health Information Technology Limited, 1997 and has worked with the group in the Hong Kong SAR, the Chairwoman of its Audit Committee and a member of Australia, the Chinese Mainland and London. its Nomination Committee and Remuneration Committee. She is also an Executive Director of Shanghai Sunnyview Independent Non-Executive Directors Eldercare Company Limited. She was Board Advisor of CHENG, Lily Ka Lai, aged 45, has been a Director of the Homeinns Hotel Group from 2019 to 2023, its Chief Company since March 2017. She is an Independent Non- Strategy Officer from 2010 to 2019 and its Chief Financial Executive Director of Chow Tai Fook Jewellery Group Limited, Officer from 2006 to 2010. Octopus Cards Limited, SUNeVision Holdings Ltd. as well as ZHU, Changlai Angela, aged 48, has been a Director of the an Advisor to HotelBeds Group and a Non-Executive Council Company since May 2023. She is the founder and Chief Member of Herbert Smith Freehills Global LLP. She is an Executive Officer of Shanghai Dechang E-commerce Co., Executive Director of Hubel Labs Limited and was the former Ltd., trading as Chapter Home, a home lifestyle brand in the President of TripAdvisor Asia Pacific and Senior Director at Chinese Mainland. She was a consultant and an Executive Expedia Inc. Ms. Cheng will be appointed as an Independent in Residence at Warburg Pincus Asia LLC, specialising in the Non-Executive Director of Cathay Pacific Airways Limited consumer retail sector, and a Non-Executive Director of the with effect from 20th May 2024. She has more than ten Southeast Asia Retail Board of IKANO Pte Ltd from 2021 to years of experience as a corporate executive of technology 2022. Prior to these roles, she worked for the IKEA Group companies providing consumer-facing software and internet from 1996 to 2021 and held various positions including services, including implementation of cybersecurity protocols. Global Commercial Director of IKEA Retail Services AB from CHOI, Tak Kwan Thomas, aged 68, has been a Director of 2018 to 2021 and Chief Executive Officer of China of IKEA the Company since May 2019. He is a fellow of The Royal (China) Investment Co., Ltd. from 2013 to 2018. Institution of Chartered Surveyors in the United Kingdom Company Secretary and The Hong Kong Institute of Surveyors. He is also an Authorised Person (Surveyor). He was a member of the LOMAS, Bernadette Mak, aged 58, has been Company Appeal Tribunal Panel (Buildings) from December 2000 to Secretary since February 2022. She is also Group General November 2013. He was employed by the Company in Counsel of the Swire Pacific Limited group. She is qualified Hong Kong from 1981 to 2002. He was employed by China to practise law in the Hong Kong SAR and in the State of Resources (Holdings) Company Limited and worked in the New York. Prior to joining the Swire Pacific Limited group, Chinese Mainland from 2002 until his retirement in 2016. she was Group General Counsel and Company Secretary of FUNG, Spencer Theodore, aged 50, has been a Director a leading Hong Kong listed company. of the Company since December 2012. He is Group Notes: Executive Chai