16 CHAIRMAN’S STATEMENT Despite the ongoing economic uncertainty, we have every confidence that investing in Hong Kong, the Greater Bay Area and the wider Chinese Mainland, as well as South East Asia, continues to be the right thing to do. Dear Shareholders, I am pleased to report that in 2024, Swire Properties gave a positive performance despite adverse market conditions. We remain on track to deliver our long-term investment strategy, and have made significant progress in executing our HK$100 billion strategic investment plan, with 67% already committed. This serves as a clear roadmap for Swire Properties’ growth, setting out our strategic expansion plans across our key markets of Hong Kong, the Chinese Mainland and South East Asia. Our successful capital recycling efforts have provided us with healthy liquidity and place us in a strong position to deliver on the next stages of our investment plan. Last year was also notable for our sustainability achievements. The highlight was achieving the top ranking in the global Dow Jones Best-in-Class World Index 2024 in the ‘Real Estate Management & Development Industry’ category. This recognition reinforces our commitment to advancing our sustainability leadership, innovating and integrating sustainability across all our businesses. Our results reflect the support given by our stakeholders and communities, as well as the team at Swire Properties, and I offer them my thanks. Hong Kong remains our home, and we are committed to playing our part in its ongoing economic recovery. We also anticipate a bright future in the Chinese Mainland, with our investments demonstrating our confidence in the long-term potential in the region. Summary of Financial Results Our recurring underlying profit attributable to shareholders decreased by HK$806 million from HK$7,285 million in 2023 to HK$6,479 million in 2024, which principally reflected higher net finance charges and a reduction in office rental income in Hong Kong. Our underlying profit was HK$6,768 million in 2024, compared to HK$11,570 million in 2023, primarily reflecting the substantial profit arising from the disposal of nine office floors of One Island East in Hong Kong in 2023, and a reduction in profit from the sale of car parking spaces in Hong Kong in 2024. Our reported loss attributable to shareholders in 2024 was HK$766 million, compared to a profit of HK$2,637 million in 2023, mainly due to a fair value loss on investment properties of HK$6,299 million in 2024 compared to HK$4,401 million in 2023. A change in the fair value of investment properties is non-cash in nature and has no impact on our operating cash flows nor on underlying profit attributable to shareholders. Our balance sheet remains healthy. The overall financial position of the Company remains strong and the change in fair value is not expected to have any impact on our investment strategy.