20 In 2023, we reached an all-time high in terms of retail sales in the Chinese Mainland, following the easing of pandemic restrictions. Factors such as the weak Japanese yen, increased outbound travel, stock market volatility, and changing consumer behaviours have created an increasingly complex operating environment. Some of our malls have also experienced disruption due to upgrading plans and renovations. Despite these factors and noting the comparison with the high post-pandemic base of the previous year, retail sales growth in the Chinese Mainland has stabilised. At the same time the overall number of visitors to our malls has increased. We recorded an underlying loss from our property trading activities in 2024 due to sales and marketing expenses incurred for several residential trading projects which will be launched over the next few years. Our Future Prospects Office The Hong Kong office market is expected to remain subdued in 2025, with weak demand and oversupply maintaining downward pressure on rents. Despite signs of a modest recovery in Hong Kong’s financial markets, the uncertain economic environment continues to contain new demand for office space. However, the ‘flight-to-quality’ trend remains strong, and our successful placemaking strategy, along with our focus on sustainability, health and safety, and the well-being of tenants’ employees, is highly valued by both existing and prospective tenants. As a result, our office portfolios in Pacific Place and Taikoo Place are well-positioned as the preferred choice for office relocations when the market rebounds. The successful completion of the latest phase of the Taikoo Place Redevelopment Project marks a significant achievement in our Company’s recent history, transforming the district from a former industrial area into a thriving, decentralised office hub and showcasing our commitment to long-term investment in our communities. Our focus on placemaking has been integral to this transformation, providing more open space and landscaped areas, including Taikoo Square, Taikoo Garden, and Taikoo Park, all interconnected with the ten office buildings. The activation of these spaces through ground-floor retail, restaurants, and year-round community events has created a sense of wellbeing and vibrancy for tenants and visitors, redefining work-life balance. Our integrated planning approach and ongoing efforts in placemaking and placekeeping are key advantages, and have been fundamental in realising our vision for Taikoo Place as a Global Business District. Looking ahead, we remain committed to upgrading and offering new products to maintain our competitive advantage. While the market is currently oversupplied, we are reviewing the timing for redevelopment of the Wah Ha Factory Building and Zung Fu Industrial Building to reflect market conditions. CHIEF EXECUTIVE’S STATEMENT