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