Rental turnover and operating profit of our Mainland China operations rose 13% to HK$3,984 million and 12% to HK$2,995 million, respectively. The robust results were contributed by the continuous growth of our properties in Shanghai, the full year impact of the mall in Shenyang, Forum 66, which commenced operation in September 2012, and the new mall in Wuxi, Center 66, which opened in September 2013.

Shanghai Plaza 66 and Grand Gateway 66 collected 7% and 6% more rents, respectively despite a general slowdown of luxury goods sales as a result of government’s anti-corruption and anti-opulence measures on the Mainland. The Grand Gateway 66 mall remained fully let and Plaza 66 mall reached 96% occupancy. Occupancy rate of our office towers in Shanghai was around 94%.

Rental turnover of Shenyang Palace 66 decreased by 2% and Jinan Parc 66 rose 1% when compared to 2012. Both shopping malls have been going through the process of tenant reshuffling after completion of the first lease term since their opening. Meanwhile, occupancy rates were adversely affected. Retail sales of both malls increased satisfactorily year-on-year despite lower occupancy rates which showed the great potential of the malls.

Shenyang Forum 66, opened in September 2012, recorded a 4% and 15% increase in rental turnover and retail sales on an average daily basis.

Performance of Wuxi Center 66, which was 3.5 months old at year end date, was encouraging with rising footfall and retail sales. Occupancy rate stood at 95%.

With the gradual improvement in sentiments of the Hong Kong residential market during the last quarter of 2013, we capitalized on such opportunity and part with 267 units of The Long Beach apartments. Together with one unit of The HarbourSide, four units of Aqua Marine and two other apartments, a total of 274 apartments were sold during 2013. Compared to 2012, property sales turnover and operating profit advanced by 97% to HK$2,518 million and 80% to HK$1,521 million, respectively. Average profit margin was 60%.

Other income decreased by 97% or HK$ 2,184 million to HK$63 million because the Group sold much fewer investment properties during 2013 as compared to a year ago. The one-off gain from disposal of investment properties in 2013 amounted to only $9 million which was significantly less than the gain of HK$2,149 million recorded in 2012.

Net interest income surged 63% to HK$429 million when compared with the previous year. This was partly due to a higher average cash and bank balance and partly attributable to the capitalization of a larger amount of interest expenses following the addition of the Kunming Spring City 66 and Wuhan Heartland 66 to projects under development on the Mainland.

In 2013, the fair value of the Group’s investment properties increased by 2% or HK$2,651 million. Property revaluation was undertaken by an independent professional valuer, Savills. There was no change in valuation methodology and capitization rates used between the two years.

As a result of a much lower one-off gain arising from the disposal of investment properties, profit attributable to shareholders decreased by 13% to HK$4,557 million compared to the previous year. When excluding the one-off gain and the effect of the discontinued operations, profit attributable to shareholders would increase 9% compared to a year ago.

With the transfer of the newly opened Wuxi Center 66 mall and a 2% revaluation gain on the existing portfolio, the amount of investment properties increased by 9% to HK$115,818 million compared to 2012.

Investment properties under development increased by 24% or HK$5,996 million to HK$30,478 million which comprised projects in Shenyang, Wuxi, Tianjin, Dalian, Kunming & Wuhan. The increase was attributed to the acquisition of a prime lot of about 82,650 square meters in Wuhan for RMB3.3 billion and construction payments of the above-mentioned projects, after deducting the amount relating to the transfer out of Wuxi Center 66 to completed investment properties. The opening of our new shopping mall in Tianjin, Riverside 66, is scheduled in the second half of 2014. Other projects under development on the Mainland are progressing as planned.

Properties for sale represent the cost of the completed residential apartments available for sale at the year end date. It comprised of 859 units of The Long Beach, 272 units of The HarbourSide, 17 units of Aqua Marine, 2 units of Carmel-on-the-Hill and the near completion of 18 houses located at 23-39 Blue Pool Road in Happy Valley. The amount of properties for sale decreased comparing to the previous year was due to the sale of 274 apartments during 2013.

At the balance sheet date, cash and bank balances amounted to HK$39,704 million, of which over 93% was held in RMB bank deposits to provide a natural hedge against the currency fluctuations of our RMB construction commitments on the Mainland. After deducting total borrowings amounted to HK$45,024 million, the net debt to equity ratio was 3.9% as at December 31, 2013.

As at December 31, 2013, the Group had total capital commitments amounted to HK$49 billion, which were mainly RMB denominated construction costs in respect of projects under development on the Mainland. Those projects would take many years to complete. As outlined above, the Group has ample financial resources to meet those commitments when they fall due.

The Group will continue to adopt a prudent and sound financial management strategy to support its long-term growth. With a strong balance sheet and quality recurring rental income, the Group is well positioned to further build up its land bank when suitable opportunities arise.