Hysan Development Company Limited expected that Group may record a loss attributable to owners of the Company for the year ended 31 December 2023 in the region of HKD 900 million mainly caused by fair value loss of investment properties in the region of HKD 2,800 million. The fair value loss was mainly attributable to change in valuation of office portfolio under development in the second half of the Year. For the year ended 31 December 2022, the loss attributable to owners of the Company and fair value loss of investment properties was HKD 1,157 million and HKD 3,213 million respectively.

Notwithstanding the above information, as the above fair value loss is non-cash in nature, there will be no effect on the operating cash flow of the Group. The overall financial position of the Group remains healthy.