48 MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS INDIGO, Beijing INDIGO mall, part of Taikoo Place Beijing, is in the Jiangtai area in the Chaoyang district of Beijing. It is directly linked to the Beijing Metro Line 14 and is near the airport expressway. ARMANI EXCHANGE, Calvin Klein, DESCENTE, i.t, JEWELRIA CHOW TAI FOOK, KAILAS, Massimo Dutti, Max & Co., MUJI, NEIWAI Active, UNIQLO, SiSYPHE bookstore, sundan, BHG Market Place and a seven-house with 1,000- seat CGV cinema are tenants. AFU, AIMER, AIMER KIDS, AW Project, Barbour, CALL ME PANDA, CALZEDONIA, Erdos 1980, HAZZYS, icebreaker, jnby by JNBY, LACOSTE, LeSportsac, lululemon Men, RAPIDO GOLF, Samsonite, ZUCZUG Flat, Chao Jia Xiang, gaga, LADERACH, MANNER COFFEE and Qing Shui Ting became tenants in 2024. The mall has strengthened its market position in the northeast Beijing through its continuous tenant mix improvement. Retail sales and gross rental income at INDIGO decreased by 4% and 2% respectively in 2024. The mall was 98% let at 31st December 2024. HKRI Taikoo Hui, Shanghai HKRI Taikoo Hui is on Nanjing West Road in the Jing’an district of Puxi, Shanghai. It has excellent transport connections, being next to the Nanjing West Road metro station (which serves three metro lines) and near the Yan’an Expressway. HKRI Taikoo Hui is our second Taikoo Hui development in the Chinese Mainland. Starbucks Reserve Roastery, CANADA GOOSE, COS, Diptyque, drivepro lab, Ermenegildo Zegna, Fred, Guerlain, Golden Goose, IWC, lululemon, LOEWE, Max Mara, Nio, RIMOWA, self-portrait, SPACE, Tesla, Ho Hung Kee, KANPAI CLASSIC, Shanghai Club, The Cheesecake Factory, Venchi and a city’super supermarket are tenants. Ahma Handmade, BALENCIAGA, BEIGEL TREE, Joyce Beauty, L’Artisan Parfumeur, Moncler, Penhaligon’s and Rolex became tenants in 2024. Retail sales and gross rental income at HKRI Taikoo Hui decreased by 14% and 17%, respectively, in 2024, reflecting disruption caused by the major structural and reconfiguration works to cater for tenant mix improvement. The mall was 93% let at 31st December 2024 including spaces allocated to prospective tenants who have signed letters of intent. Taikoo Li Qiantan, Shanghai Jointly developed with a subsidiary of Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., Taikoo Li Qiantan is a retail development in Qiantan, Pudong new district in Shanghai. Connected with three metro lines, it has an aggregate GFA of 1,188,727 square feet and space for around 270 shops. It is our second development in Shanghai and the third Taikoo Li project in the Chinese Mainland. Taikoo Li Qiantan is a popular mall with both luxury retail and experiential offerings. Audemars Piguet, Bvlgari, DIOR, Cartier, Gucci, Hermès, Huawei, Lotus Nyo, LOUIS VUITTON, Moncler, Tiffany & Co., Van Cleef & Arpels, Tsutaya, Xin Rong Ji, and the 656-seat MOViE MOViE are tenants. 59 new stores were opened in 2024 including “first in China” concept stores such as LOUIS VUITTON’s Le Chocolat by Maxime Federic, Frame Denim, and Evidens. Retail sales and gross rental income at Taikoo Li Qiantan grew steadily by 3% and 7%, respectively, in 2024. The development was 98% let at 31st December 2024. Chinese Mainland Retail Market Outlook Retail sales growth in the Chinese Mainland in 2025 is expected to gain pace driven by an improvement in domestic demand on the back of the recent stimulus measures, whilst retailers maintain a positive outlook in the medium to long-term. Retailers are expected to focus on offering unique experiences, exclusive concepts and customer engagement, highlighting the importance of the unique positioning, brand mix and premium services across our portfolios. Inbound and outbound travels are anticipated to increase and a recalibration between onshore and offshore spending behaviour from customers as compared to pre-pandemic pattern is expected. However, in the long-term, it is expected that onshore spending will still account for the majority of the total retail business in the Chinese Mainland. Meanwhile, the number of Chinese luxury customers is anticipated to keep increasing, highlighting the Chinese Mainland as one of the largest luxury retail markets globally. The market demand on retail space is expected to be prudent in 2025. While retailers of luxury brands will remain cautious on expansions in Beijing, Chengdu and Shanghai where the Group is operating, demand for spaces in key locations with high potentials and experiential offerings is expected to continue. In Guangzhou, demand for space from luxury brands is expected to be sustained. Overall, demand from sports and leisure brands is expected to increase.