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