44.6% 23.1% 5.0% 18.2% 5.3% 3.8% Fashion and accessories Food and beverages Cinemas Supermarkets Jewellery and watches Others Retail Area by Tenants’ Businesses (At 31st December 2024) 46 MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS At 31st December 2024, the top ten retail tenants (based on attributable gross rental income in the twelve months ended 31st December 2024) together occupied approximately 24% of the Group’s total attributable retail area in the Chinese Mainland. Taikoo Li Sanlitun, Beijing Taikoo Li Sanlitun is in the Sanlitun area of the Chaoyang district of Beijing. It was our first retail development in the Chinese Mainland. It comprises three neighbouring retail sites, South, North and West. There are approximately 282 retail outlets. Taikoo Li Sanlitun South concentrates on contemporary fashion and designer brands. Apple, ARC’TERYX, ISSEY MIYAKE flagship store, i.t blue block, Maison Margiela flagship store, SEPHORA and World of Ralph Lauren are tenants. Improvement to tenant mix continued. In 2024, LOUIS VUITTON pop-up store, Acne Studios, Aesop, lululemon, Vivienne Westwood and EMPEROR CINEMAS have been opened. Tenants in Taikoo Li Sanlitun North are principally retailers of luxury, designer fashion and lifestyle brands. Alexander McQueen, BALENCIAGA, Bape, CANADA GOOSE, CELINE, Gucci, I.T, LOEWE and Moncler are tenants. BOTTEGA VENETA, Burberry and Jordan World of Flight opened stores in 2024. The Opposite House, adjacent to Taikoo Li Sanlitun North, was closed in 2024 and is under structural renovations for conversion into a new retail landmark for global flagship stores. As an extension to Taikoo Li Sanlitun South, tenants in Taikoo Li Sanlitun West include DESCENTE Kinetic Lab Global Experience Centre, Nike Rise and UNIQLO Global Sanlitun Flagship Store. Gross rental income at Taikoo Li Sanlitun increased by 12% in 2024 and reached a record high, reflecting the strong footfall in Taikoo Li Sanlitun South and West benefitting from the successful upgrade of brand positioning and the newly opened flagship stores as well as the introduction of visa-free policy, the reopening of Workers’ Stadium and the opening of metro lines nearby. Demand for retail space at Taikoo Li Sanlitun is strong as its position as a fashionable retail destination is being reinforced. To enhance the leading luxury positioning in the Beijing market, structural and reconfiguration works to facilitate the tenant mix improvement at Taikoo Li Sanlitun North are in progress. Retail sales decreased slightly by less than 1% as a result. The development was 98% let at 31st December 2024. The Group’s gross rental income from retail properties in the Chinese Mainland increased by 7%, to HK$4,489 million, in 2024. Disregarding the impact arising from the incremental shareholding acquired at Taikoo Li Chengdu in February 2023 and changes in the value of the Renminbi, gross rental income increased by 4%. 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 2024.