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