25 SWIRE PROPERTIES ANNUAL REPORT 2024 elements, technologies and programmes to improve our performance in Environment, Social and Governance, and by engagement with tenants and others with whom we do business. 3. Develop luxury and high-quality residential property activities Our residential developments will be aimed at buyers of luxury and high-quality properties, where we believe we have a competitive advantage. We will look to acquire appropriate sites for trading and investment with reasonable returns in the markets in Hong Kong. We will seek residential development opportunities in the Chinese Mainland. These are likely to be ancillary to our mixed-use developments. However, in the right locations and cities we may also consider standalone residential development opportunities. We will also actively explore residential trading opportunities in four target markets of Jakarta, Singapore, Bangkok and Ho Chi Minh City in South East Asia. 4. Focus principally on Hong Kong and the Chinese Mainland In Hong Kong, we will continue to focus on reinforcing our existing investment property assets and on seeking new sites suitable for transformative developments and for residential projects. In Chinese Mainland, we will expand our presence with large-scale mixed-use, commercial developments in Tier-1 and emerging Tier-1 cities. We will continue to leverage our established “Taikoo Li” and “Taikoo Hui” brands to develop iconic landmark properties. While we will continue to concentrate on Hong Kong and the Chinese Mainland, we intend to expand selectively in South East Asia. 5. Manage our capital base conservatively We intend to maintain a strong balance sheet supported by an active capital recycling strategy, with a view to investing in and financing our projects in a disciplined and targeted manner. We aim to maintain exposure to a range of debt maturities and a range of debt types and lenders. Our current debt profile reflects a mix of revolving and term bank loans and medium term notes. In implementing the above strategies, the principal risks and uncertainties facing by the Group are that the economies in which it operates (in particular Hong Kong and the Chinese Mainland) will not perform as well in the future as they have in the past and the uncertainties as to whether this will happen.