Investment Rating - The report does not provide a specific investment rating for the company [2]. Core Insights - The company plans to acquire a 55.7% stake in ThaiNamthip for approximately HKD 94.701 billion and will sell about 30% of its interests in Cambodian and Vietnamese Coca-Cola bottling operations for approximately USD 2.711 billion (around HKD 21.15 billion) [4][6]. - The acquisition aims to form a strategic bottling alliance in Northern ASEAN, which includes Thailand, Laos, Cambodia, and Vietnam, enhancing the company's beverage business expansion in Southeast Asia [4][6]. - Southeast Asia is expected to be a significant growth driver for the company's beverage business, with beverage revenue contributing 59.1% to total income in H1 2023 [4][6]. - The company has a remaining buyback capacity of approximately HKD 54.4 billion, which is expected to provide support for the stock price [4][9]. - The company maintains a strong cash position and a sustainable dividend policy, emphasizing shareholder returns through its buyback plan [4][11]. Summary by Sections Market Data - Closing price (A shares) is HKD 63.20, total shares outstanding are 856.82 million, and total market capitalization is HKD 542 billion [2]. Financial Performance - For H1 2023, the company reported operating revenue of HKD 51.544 billion, with a year-on-year growth of 15.0% [5]. - The recurring net profit attributable to shareholders was HKD 4.879 billion, showing a significant increase of 283.6% year-on-year [5]. - The net profit margin for H1 2023 was 9.5%, indicating improved profitability [5]. Share Buyback Program - The company announced a buyback program of HKD 60 billion, representing about 9% of its total market capitalization as of the announcement date [4][9]. - As of February 16, 2024, the company had repurchased approximately HKD 5.6 billion worth of shares, with an average daily buyback amounting to 16.2% of the trading volume for A shares and 21.8% for B shares [9][11].

Financial Performance - The company's profit attributable to shareholders reached HKD 4,221 million, a 121% increase from HKD 1,914 million in the previous year[5]. - Basic earnings increased to HKD 5,594 million, up 219% from HKD 1,752 million year-on-year[5]. - Revenue for the period was HKD 51,544 million, reflecting a 15% growth compared to HKD 44,808 million in the same period last year[5]. - The operating profit was HKD 5,079 million, a decrease of 25% from HKD 6,794 million in the previous year[5]. - The group recorded a profit of HKD 63 million for the first half of 2023, compared to a profit of HKD 166 million in the same period of 2022, reflecting a decrease due to losses in certain associated businesses[8]. - The attributable profit for the company was HKD 2,222 million, down from HKD 4,347 million year-on-year[14]. - The company reported a profit of HKD 4,867 million for the six months ended June 30, 2023, compared to HKD 3,029 million for the same period in 2022, representing a year-over-year increase of 61%[92]. Debt and Equity - The net debt amounted to HKD 66,915 million, a 52% increase from HKD 43,911 million year-on-year[5]. - The capital net debt ratio (excluding lease liabilities) was 21.4%, an increase of 7.7 percentage points from 13.7%[5]. - Total equity, including non-controlling interests, stood at HKD 312,933 million, down 3% from HKD 321,421 million[5]. - The net debt-to-equity ratio as of June 30, 2023, was 21.4%, with available liquidity of HKD 35.9 billion, expected to improve further following the sale of the US bottling business[8]. - The total borrowings and bonds as of June 30, 2023, stood at HKD 80,355 million, up from HKD 68,373 million at the end of 2022[77]. - The net debt-to-equity ratio as of June 30, 2023, increased to 28.7% from 27.6% as of December 31, 2022[84]. Dividends - The company declared an interim dividend of HKD 1.20 per 'A' share, a 4% increase from HKD 1.15 in the previous year[5]. - The group plans to distribute a special dividend of HKD 8.120 per 'A' share and HKD 1.624 per 'B' share, representing a 4% increase from the first interim dividend in 2022[8]. - The first interim dividend for the year ending December 31, 2023, is announced at HKD 1.20 per 'A' share and HKD 0.24 per 'B' share, totaling HKD 1.73 billion, compared to HKD 1.72 billion in 2022[120]. Segment Performance - The beverage segment recorded a recurring profit of HKD 1.627 billion, up 41% from HKD 1.152 billion in the first half of 2022, with total revenue increasing by 14% to HKD 30.42 billion[7]. - The property segment's attributable recurring profit for the first half of 2023 was HKD 3.188 billion, a 6% increase from HKD 2.994 billion in the same period of 2022[7]. - The airline segment, specifically Cathay Group, reported an operating profit of HKD 1,921 million[96]. - The beverage segment in mainland China reported revenue of HKD 13,202 million, contributing an operating profit of HKD 823 million[96]. Cash Flow and Investments - The net cash outflow before financing was HKD 3,493 million, a significant increase from HKD 2,243 million in the previous year[5]. - The group generated cash from operations amounting to HKD 7,206 million, an increase from HKD 6,147 million in the same period last year[76]. - The company reported a net cash inflow of HKD 633 million for the six months ended June 30, 2023, compared to a net outflow of HKD 9,165 million in the same period of the previous year[76]. - The company has committed approximately HKD 390 billion for planned investments, with HKD 170 billion allocated to mainland China and HKD 110 billion each for Hong Kong and residential projects[18]. Market Outlook and Strategy - The group expects stable demand for base maintenance and an increase in demand for line maintenance and engine overhaul services in the second half of 2023[10]. - The group continues to focus on long-term investment strategies despite economic uncertainties, driven by the recovery of Cathay Pacific's business[9]. - The company plans to continue expanding its market presence and investing in new technologies and products[96]. - The group anticipates moderate growth in sales in Hong Kong due to increased inbound tourism and improved local consumption demand[45]. Operational Metrics - The passenger load factor improved to 87.2%, up by 28 percentage points from 59.2% in the previous year[49]. - Available tonne-kilometers increased by 211.2% to 9,628 million, while available seat-kilometers surged by 1,111.3% to 37,053 million[49]. - The total sold hours for base maintenance services in the first half of 2023 reached 202,000 hours, a 13% increase compared to the same period in 2022[59]. Challenges and Risks - The company expects raw material prices and operating expenses to continue rising, impacting profitability negatively[45]. - The airline segment recorded a loss of HKD 2,250 million, reflecting ongoing challenges in the aviation industry[97]. - Cathay Pacific is facing antitrust lawsuits in various jurisdictions, with potential liabilities still under assessment, including a fine of EUR 57.12 million imposed by the European Commission[154].

Financial Performance - The company's profit attributable to shareholders increased by 121% to HKD 4,221 million compared to HKD 1,914 million in the previous year[6]. - Basic earnings rose by 219% to HKD 5,594 million from HKD 1,752 million year-on-year[6]. - Revenue for the period reached HKD 51,544 million, reflecting a 15% increase from HKD 44,808 million in the previous year[6]. - Operating profit decreased by 25% to HKD 5,079 million, down from HKD 6,794 million in the previous year[6]. - The total equity, including non-controlling interests, decreased by 3% to HKD 312,933 million from HKD 321,421 million[6]. - The attributable consolidated profit for the first half of 2023 was HKD 42.22 billion, compared to HKD 19.14 billion in the same period of 2022, reflecting a significant recovery[10]. - The company reported a total attributable profit of HKD 2,222 million for the first half of 2023, down from HKD 4,347 million in the same period of 2022[25]. - The attributable basic profit for the first half of 2023 was HKD 3,897 million, a decrease from HKD 4,149 million in the same period of 2022[27]. - The group recorded a property valuation loss of HKD 1,646 million in the first half of 2023, compared to a valuation gain of HKD 757 million in the first half of 2022[27]. - The group reported a decrease in profit from asset sales of HKD 9 million in the first half of 2023, compared to HKD 497 million in the same period of 2022[29]. Debt and Equity - The net debt increased by 52% to HKD 66,915 million from HKD 43,911 million year-on-year[6]. - The capital net debt ratio (excluding lease liabilities) rose to 21.4%, an increase of 7.7 percentage points from 13.7%[6]. - As of June 30, 2023, the company's net debt-to-capital ratio was 21.4%, with available liquid funds of HKD 35.9 billion[16]. - The anticipated profit from the sale of the US bottling business could reduce the net debt-to-capital ratio to 14.9%[16]. - The group’s total borrowings increased to HKD 80,355 million as of June 30, 2023, compared to HKD 68,373 million at the end of 2022[113]. - The net debt-to-equity ratio was 21.4% as of June 30, 2023, up from 13.7% in the previous year[121]. - The group reported a total net debt of HKD 38,471 million as of June 30, 2023, down from HKD 53,738 million at the end of 2022[123]. - The group's attributable share of net debt was HKD 22,951 million as of June 30, 2023, compared to HKD 30,360 million at the end of 2022[123]. Cash Flow and Operations - Cash generated from operations was HKD 7,206 million, up 17% from HKD 6,147 million in the previous year[6]. - The company reported a net cash generated from operations of HKD 5,153 million for the six months ended June 30, 2023, compared to HKD 4,261 million for the same period in 2022, representing a 20.9% increase[133]. - The group reported a net cash inflow from financing activities of HKD 4,126 million for the first half of 2023[112]. - The company’s operating cash flow before interest and tax payments was HKD 4,931 million, up from HKD 3,875 million, reflecting a growth of 27.3%[133]. Dividends and Share Buybacks - The company declared a dividend of HKD 1.20 per 'A' share, a 4% increase from HKD 1.15 in the previous year[6]. - The company announced an interim dividend of HKD 1.20 per 'A' share and HKD 0.24 per 'B' share, representing a 4% increase compared to the first interim dividend in 2022[15]. - The company repurchased shares amounting to HKD 680 million during the reporting period[134]. - The company paid dividends totaling HKD 2,675 million during the six months ended June 30, 2023[134]. Business Segments Performance - The beverage segment reported a 41% increase in attributable recurring profit to HKD 1.627 billion, up from HKD 1.152 billion in the first half of 2022, with total revenue rising 14% to HKD 30.44 billion[12]. - The real estate segment's attributable recurring profit was HKD 31.88 billion, a 6% increase from HKD 29.94 billion in the first half of 2022, driven by strong recovery in retail and hotel businesses in Hong Kong[11]. - The cargo business has been rebranded as "Cathay Cargo" to align with the main brand's vision and values, showing progress in capacity and network expansion[9]. - The aviation sector recorded a profit attributable to shareholders of HKD 1.796 billion in the first half of 2023, compared to a loss of HKD 2.236 billion in the same period of 2022[76]. - Cathay Pacific's passenger revenue reached HKD 25.013 billion, a significant increase of 1,109.5% year-on-year, with passenger numbers rising to 7.816 million, up 2,233.1%[74][78]. Market Expansion and Investments - The company is focusing on sustainable development and expanding into healthcare and sustainable food sectors[3]. - The group has committed approximately 40% of its HKD 100 billion investment plan in Hong Kong, mainland China, and Southeast Asia for various projects[8]. - The group is focusing on long-term investment opportunities in the Greater Bay Area, including Guangzhou and Shenzhen[8]. - The company plans to continue expanding its market presence in Southeast Asia and the United States, focusing on strategic acquisitions and new product developments[136]. Operational Challenges and Outlook - The anticipated profit from the sale of the US bottling business could reduce the net debt-to-capital ratio to 14.9%[16]. - The company expects its performance rebound in the first half of 2023 to continue into the second half, driven by the recovery of Cathay Pacific's business[18]. - The demand for office space in Hong Kong is expected to remain weak in the second half of 2023, with increased competition from Central and East Kowloon[38]. - The group expects to face challenges from labor shortages and rising costs, which may impact financial performance in the second half of 2023[107]. Sustainability and Community Engagement - The company is committed to sustainable development through its SwireTHRIVE strategy, focusing on reducing environmental impact and supporting local communities[17]. - The company is focusing on enhancing office quality and sustainability to meet tenant demands[38].

Business Operations - The company reported a significant presence in the Greater China region, with over 78.2 million consumers reached through its beverage distribution, including 21 carbonated beverage brands[5]. - As of December 31, 2022, the airline group operated a fleet of 222 aircraft, providing services to 81 destinations across 30 countries and regions, with an additional 21 countries served through code-sharing agreements[5]. - The real estate division has become one of the largest commercial property owners and retail operators in Hong Kong, managing major projects like Taikoo Place and Cityplaza[5]. - The company is actively seeking investment opportunities in the private healthcare sector, particularly in major urban areas in mainland China and Southeast Asia[5]. - The beverage sector is a key focus, with plans to expand distribution and product offerings in the Greater China region and beyond[5]. - The company is expanding its Coca-Cola bottling operations into Southeast Asia through acquisitions in Cambodia and Vietnam[10]. - The company is acquiring a 50% stake in a luxury retail development project in Sanya, marking its first project in Hainan[10]. - The company is focusing on developing high-end residential properties and expanding in Hong Kong and mainland China markets[19]. - The company is focusing on consolidating its position as a high-end shopping and leisure destination in mainland China[38]. Financial Performance - The profit attributable to shareholders rose by 25% to HKD 4,195 million in 2022, compared to HKD 3,357 million in 2021[7]. - The basic earnings per share for 'A' shares increased by 25% to HKD 2.81 in 2022, up from HKD 2.24 in 2021[7]. - Revenue decreased by 1% to HKD 91,693 million in 2022, down from HKD 92,830 million in 2021[7]. - The net debt increased by 47% to HKD 56,759 million in 2022, compared to HKD 38,655 million in 2021[7]. - The company announced a 15% increase in the 'A' share dividend to HKD 3.00 in 2022, up from HKD 2.60 in 2021[7]. - The operating cash flow decreased by 22% to HKD 12,043 million in 2022, down from HKD 15,453 million in 2021[7]. - The company's consolidated profit attributable to shareholders for 2022 was HKD 4.19 billion, compared to HKD 3.35 billion in 2021, representing an increase of approximately 25.4%[12]. - The basic profit attributable to shareholders, excluding the value changes of investment properties, was HKD 4.74 billion in 2022, down from HKD 5.29 billion in 2021, indicating a decrease of about 10.4%[12]. - The recurring basic profit for 2022 was HKD 3.8 billion, a decrease from HKD 4.88 billion in 2021, reflecting a decline of approximately 22%[12]. - The company reported an EBITDA of HK$5.545 billion in 2022, down from HK$5.791 billion in 2021, indicating a decline of about 4.3%[65]. - Operating profit decreased to HK$3.274 billion in 2022 from HK$3.512 billion in 2021, reflecting a decline of approximately 6.8%[65]. - The net profit attributable to shareholders was HK$2.392 billion in 2022, compared to HK$2.549 billion in 2021, marking a decrease of around 6.2%[65]. Investment and Expansion - The company is expanding its property portfolio with a HKD 100 billion investment plan, having already allocated HKD 39 billion for new projects[10]. - The company announced a HKD 100 billion investment plan to be allocated over the next decade, with HKD 30 billion for Hong Kong projects, HKD 50 billion for mainland China, and HKD 20 billion for residential sales projects[30]. - As of March 7, 2023, the company had committed approximately HKD 39 billion of the planned investment, including HKD 17 billion in mainland China and HKD 11 billion in Hong Kong[30]. - The company is focusing on expanding its hotel management business through management agreements outside of Hong Kong[54]. - The company is actively hiring and training employees to develop digital capabilities and enhance workforce diversity[188]. Corporate Governance - The company is committed to high standards of corporate governance and sustainable development practices to enhance its brand and reputation[4]. - The board of directors is responsible for strategic leadership and oversight, ensuring maximum returns for shareholders while considering the interests of stakeholders[151]. - The company has adopted a self-developed corporate governance code, which is available on its website, reflecting its commitment to evolving governance practices[150]. - The board has established three main committees: Audit Committee, Remuneration Committee, and Nomination Committee, to assist in fulfilling its responsibilities[153]. - The company emphasizes the importance of high-quality products and services to ensure customer satisfaction and long-term sustainable growth[150]. - The company has established effective mechanisms for obtaining independent viewpoints and opinions, with annual reviews of the independence of non-executive directors[156]. - The company has implemented a continuous professional development program for all directors, ensuring they stay updated on relevant knowledge and skills[161]. Market Conditions and Challenges - The performance of the hotel business continued to reflect a challenging operating environment due to pandemic-related impacts[12]. - The company experienced a doubling of daily trading volume following the share buyback announcement, indicating positive market reaction[12]. - Despite inflation and geopolitical tensions, the outlook for 2023 remains optimistic, particularly for the airline business as pandemic restrictions are lifted[14]. - The company faced challenges due to high turnover rates among skilled technicians, impacting service capacity[94]. - The company is closely monitoring financial markets and their impact on financial risks, while maintaining dialogue with banks regarding risk mitigation strategies[190]. Sustainability and Social Responsibility - The group aims to achieve net-zero carbon emissions by 2050, with interim targets to reduce greenhouse gas emissions by 50% by 2030 compared to 2018 levels[13]. - The company is committed to sustainability initiatives, including carbon reduction and responsible sourcing, to enhance its corporate citizenship[60]. - The company has established a dedicated governance structure to monitor environmental and sustainability risks[189]. - The company is adopting the NIST Cybersecurity Framework to enhance its cybersecurity and data protection policies[186]. Employee and Talent Management - The company employs over 29,000 staff in Hong Kong and more than 35,000 in mainland China, totaling nearly 80,000 employees globally[5]. - The company provides competitive compensation and benefits to attract, motivate, and retain talent across all levels[150]. - The company is actively recruiting talent to support business recovery[86]. - The company has a succession plan in place, regularly assessing the tenure of directors and maintaining a candidate list for potential new appointments[165].

Financial Performance - In 2021, the company's equity return improved to 1.3%, up from -4.1% in 2020, representing a 5.4 percentage point increase [7]. - The company reported a profit attributable to shareholders of HKD 3,364 million, a significant recovery from a loss of HKD 10,999 million in the previous year [8]. - Basic profit for the year was HKD 5,300 million, compared to a loss of HKD 3,969 million in 2020 [8]. - The company achieved a recurring basic profit of HKD 4,885 million, a recovery from a loss of HKD 609 million in the previous year [8]. - Revenue increased to HKD 92,403 million, up 15% from HKD 80,032 million [9]. - Operating profit surged to HKD 10,522 million, a 290% increase from HKD 2,695 million [9]. - Basic earnings per share for 'A' shares improved to HKD 3.53, compared to a loss of HKD 2.64 in the previous year [10]. - Basic earnings per share for 'B' shares increased to HKD 0.71, up from a loss of HKD 0.53 [10]. - The company's attributable profit for 2021 was HKD 7,131 million, up from HKD 4,132 million in 2020, marking a significant increase of 72.5% [47]. - The company reported a loss of HKD 1,931 million from investment property valuation, an improvement from a loss of HKD 4,421 million in 2020 [44]. Dividends and Shareholder Returns - The 'A' share dividend per share increased by 53% to HKD 2.60, compared to HKD 1.70 in 2020 [7]. - The board announced an interim dividend of HKD 1.60 per 'A' share and HKD 0.32 per 'B' share for 2021, with a commitment to distribute at least half of recurring net profit as dividends [28]. - The company reported a second interim dividend of HKD 0.52 per share, with the ex-dividend date set for April 6, 2022 [29]. Debt and Financial Stability - Total equity, including non-controlling interests, reached HKD 324,168 million, a 2% increase from HKD 319,146 million [9]. - The net debt decreased slightly to HKD 38,655 million, down 1% from HKD 38,900 million [9]. - The capital to net debt ratio (excluding lease liabilities) improved to 11.9%, a decrease of 0.3 percentage points from 12.2% [9]. - The net debt-to-equity ratio as of December 31, 2021, was 11.9%, indicating strong financial stability [16]. - The net debt ratio at the end of 2021 was 11.9%, slightly lower than 12.2% at the end of 2020 [29]. Business Segments and Investments - The beverage division distributed Coca-Cola products to a population of 762 million in Greater China and the United States [5]. - The company holds an 18.13% stake in Cathay Pacific Airways, which operated 234 aircraft at the end of 2021 [5]. - The company completed the sale of its 50% stake in Hong Kong United Dockyards in September 2021 [5]. - The company plans to invest HKD 7 billion in a new retail-led integrated development project in Xi'an, China [15]. - The company is focusing on sustainable development and expanding into healthcare and sustainable food sectors [4]. - The company plans to continue seeking investment opportunities in private healthcare services, particularly in major urban areas in mainland China [5]. - Swire Properties plans to invest over HKD 100 billion in various development projects over the next decade, with more than half allocated to mainland China [18]. - The group aims to invest over HKD 20 billion in healthcare businesses in mainland China over the next decade [18]. Real Estate Performance - The recurring basic profit for the real estate sector remained stable at HKD 58.24 billion, compared to HKD 58.34 billion in the previous year, with significant growth in retail rental income from mainland China [16]. - The real estate sector continued to be the largest source of profit for the group, with a recurring net profit of HKD 5.824 billion in 2021, compared to HKD 5.834 billion in 2020 [28]. - The real estate segment maintained stable performance with a profit of HKD 5,824 million in 2021, slightly down from HKD 5,834 million in 2020 [199]. - The total floor area of completed properties reached 22,681 thousand square feet as of December 31, 2021, with ongoing developments adding an additional 2,860 thousand square feet [43]. - The total floor area of completed properties in Hong Kong is 12 million square feet, with an additional 1.2 million square feet under construction [39]. - The total area of properties under development in mainland China is projected to reach 1,685 thousand square feet, contributing to future growth [43]. Market Conditions and Challenges - The aviation sector's performance was impacted by ongoing travel restrictions, with a reported attributable loss of HKD 55.527 billion for 2021, compared to a loss of HKD 216.48 billion in 2020 [28]. - Cathay Pacific recorded a loss of HKD 23.8 billion in 2021, significantly reduced from a loss of HKD 97.551 billion in 2020, with a notable improvement in the second half of the year [28]. - The hotel business in mainland China and the U.S. is expected to recover strongly, while Hong Kong's hotel outlook remains challenging due to ongoing travel restrictions [30]. - The retail market in Hong Kong showed signs of recovery in 2021, but the resurgence of COVID-19 in early 2022 has impacted this recovery [116]. - The company faced increased raw material costs and operating expenses, which partially offset revenue growth [142]. Sustainability and Corporate Responsibility - The company is committed to sustainable development, integrating environmental, social, and governance elements into its operations [16]. - Swire Properties aims to reduce greenhouse gas emissions by 50% by 2030 and achieve net-zero carbon emissions by 2050 [30]. - The company is committed to investing in employee training and development to ensure fair and equal opportunities [30]. - The company aims to achieve net-zero carbon emissions by 2050 as part of its sustainability strategy [155]. Strategic Initiatives and Future Outlook - The company is enhancing its core businesses and consolidating its asset portfolio to prepare for new opportunities [29]. - The company is actively developing new products to meet changing consumer preferences, particularly in the beverage sector [29]. - The company continues to manage the Two Brickell City Centre and Three Brickell City Centre office buildings after their sale in 2020 [70]. - The company anticipates significant revenue growth in mainland China for 2022, assuming continued control of the pandemic and strong economic growth [145].

■ 太古公司 殷份代號：'A' 股 00019 'B' 股 00087 二零－九年報告書 目 錄 | --- | --- | --- | --- | |-------|--------------------------|---------|-------------------------------------| | | | | | | 1 | 企業宣言 | | 財務報表 | | 3 | 二零一九年表現摘要 | | 獨立核數師報告 | | 4 | 主席報告 | 121 128 | 綜合損益表 | | 6 | 財務董事報告 | 129 | 綜合其他全面收益表 | | | | 130 | 綜合財務狀況表 | | | 管理層論述及分析 | 131 | 綜合現金流量表 | | 10 | 二零一九年表現評述及展望 | 132 | 綜合權益變動表 | | | 10 地產部門 | 133 | 財務報表附註 | | | 28 航空部門 | 204 | 主要會計政策 | | | 44 飲料部門 | 207 | 主要附屬公司、合資公司及 | | | 56 海洋服務部門 | | 聯屬公司及投資 | | | 66 貿易及實業部門 ...