Investment Summary

Benefiting from strong local consumption and a 15% increase in Mainland tourists visiting HK，HK`s overall retail market continued to recover since last second half year. In last May, the value of total retail sales rose 12.9% y.o.y., accelerating from 12.2% in April. Among different categories, department store sales increased by 16.7%. In the first four months of this year, the value of total retail sales and department store sales increased by 13.7% and 13.9% respectively.

Lifestyle has completed the disposal of its entire 59.56% stake in Lifestyle Properties and thus now focus in its retail business i.e. operating the two Sogo Department Stores in Causeway Bay and Tsim Sha Tsui. According to the management team, the overall revenue growth for the year to date has been able to maintain double-digit growth. Average daily traffic, sales per ticket, stay and buy ratio all has been increased during the period. During the last Thankful Week event in May, record-breaking sales has also been able to achieved as previous years.