Company Overview - Swire Properties operates over 2,200 retail outlets in its shopping malls, with an estimated workforce of over 70,000 in its office buildings in Hong Kong[6]. - Swire Group employs over 78,000 people globally, with more than 32,000 in Hong Kong and over 35,000 in mainland China[6]. - The company is focusing on long-term growth in the real estate, beverage, and aviation sectors, with plans to expand into healthcare services in major urban areas in mainland China and Southeast Asia[4][6]. - Swire Group has established a strong presence in the Greater China region, leveraging its extensive experience and solid business relationships[4]. Financial Performance - The company reported a significant increase in net profit attributable to shareholders, reaching HKD 28,853 million in 2023, up 588% from HKD 4,195 million in 2022[7]. - Basic earnings per share for 'A' shares surged by 687% to HKD 25.03, while 'B' shares increased by 693% to HKD 5.01[7]. - Revenue for 2023 was HKD 94,823 million, reflecting a 3% growth from HKD 91,693 million in 2022[7]. - Operating profit increased by 150% to HKD 30,621 million, with a significant rise in operating profit excluding fair value changes of investment properties, which reached HKD 33,481 million, up 193%[7]. - The company achieved a cash inflow from operations of HKD 14,479 million, a 20% increase from HKD 12,043 million in 2022[7]. - The total equity, including non-controlling interests, rose by 3% to HKD 324,774 million[7]. Dividends and Shareholder Value - The company aims to maintain a stable dividend growth while creating long-term shareholder value through strategic investments in high-potential sectors[4]. - The company declared a dividend of HKD 11.32 per 'A' share, representing a 277% increase compared to HKD 3.00 in 2022[7]. - The group announced a progressive dividend policy, declaring an interim dividend of HKD 2.00 per 'A' share and HKD 0.40 per 'B' share, resulting in an overall dividend of HKD 3.20 per 'A' share and HKD 0.64 per 'B' share for the year, a 7% increase from 2022[12]. Investment Strategy - Swire Group's investment strategy focuses on building a portfolio that can consistently provide stable dividends[4]. - The company plans to invest nearly 60% of its HKD 100 billion commitment in core market projects by March 2024[10]. - The company is actively seeking investment opportunities in the private healthcare sector, particularly in major urban areas in mainland China and Southeast Asia[6]. - The group plans to invest in residential property markets in Bangkok, Jakarta, and Ho Chi Minh City despite a challenging business environment[13]. Real Estate and Property Development - The total floor area attributable to Swire Properties is approximately 34.4 million square feet, with 24.4 million square feet completed and 10 million square feet under development[31]. - The total completed area in mainland China is 10.6 million square feet, with significant projects in cities like Beijing, Guangzhou, and Shanghai[35]. - The company has nine residential projects under development, with four in Hong Kong and two in mainland China[33]. - The company aims to enhance shareholder value through active asset management and development of high-quality residential properties[34]. Aviation Sector Performance - Cathay Pacific and its subsidiaries operated a fleet of 230 aircraft as of December 31, 2023, providing scheduled passenger and cargo services to 92 destinations globally[6]. - Cathay Group reported a significant increase in passenger traffic, carrying 18 million passengers in 2023, more than five times the number in 2022[11]. - Cathay Pacific's passenger revenue reached HKD 55,951 million in 2023, a 308.8% increase from HKD 13,686 million in 2022[167]. - The passenger load factor improved to 85.7% in 2023, up by 12.1 percentage points from 73.6% in 2022[167]. Beverage Division Performance - The beverage division distributes Coca-Cola products to a population of 847 million in Greater China and Southeast Asia, and provides management support services to Swire Coca-Cola in the U.S., which serves a population of 31 million[6]. - Total revenue for 2023 was HKD 51,844 million, a decrease of 5% from HKD 54,225 million in 2022[134]. - Swire Coca-Cola recorded a profit attributable to shareholders of HKD 25.097 billion, including a non-recurring gain of HKD 22.907 billion from the sale of its US subsidiary[137]. Sustainability and Development Goals - The company is committed to sustainable development and believes it is essential for long-term growth and innovation[4]. - The group has committed to sustainability, with internal carbon pricing initiatives and a goal to achieve net-zero carbon emissions by 2050[13]. - Swire Coca-Cola aims to integrate sustainability goals into its business plan, empowering employees to contribute to achieving these objectives by 2030[130]. Challenges and Future Outlook - The company expects moderate growth in 2024 due to the return of tourists to Hong Kong, although this growth may be partially offset by local residents traveling to mainland China[192]. - The Hong Kong office market is expected to remain weak in 2024 due to soft demand and increased supply, with rental prices under downward pressure, particularly from Central and Kowloon East[121]. - Future outlook indicates challenges in mainland China due to weak consumer spending, while moderate growth is expected in Hong Kong[152].

Financial Performance - The company's equity return for 2023 was 11.0%, an increase of 9.4 percentage points from 1.6% in 2022[2]. - The earnings attributable to shareholders reached HKD 28,853 million, a significant increase of 588% from HKD 4,195 million in 2022[2]. - Basic earnings for 2023 were HKD 36,177 million, up 662% from HKD 4,748 million in the previous year[2]. - Revenue for the year was HKD 94,823 million, reflecting a growth of 3% compared to HKD 91,693 million in 2022[2]. - Operating profit increased by 150% to HKD 30,621 million from HKD 12,241 million in 2022[2]. - The group recorded a record basic profit of HKD 36.2 billion for 2023, driven by significant non-recurring items, including HKD 22.9 billion from the sale of the US Swire Coca-Cola business[8]. - The group achieved a recurring basic profit of HKD 10.44 billion in 2023, compared to HKD 3.8 billion in 2022, reflecting a substantial recovery in the aviation sector[11]. - The group announced a total dividend of HKD 3.20 per 'A' share and HKD 0.64 per 'B' share for 2023, a 7% increase from the previous year[17]. - The group reported a net profit attributable to shareholders of HKD 2,599 million for 2023, down from HKD 7,983 million in 2022, indicating a decrease of approximately 67.5%[31]. - The company reported a net profit of HKD 29,838 million for 2023, up from HKD 6,269 million in 2022, an increase of 376.5%[121]. Cash Flow and Debt Management - The company reported a net cash inflow of HKD 22,947 million before financing, compared to a net outflow of HKD 9,386 million in the previous year[2]. - The net debt decreased by 3% to HKD 55,136 million from HKD 56,759 million in 2022[2]. - The Group's available liquidity increased from HKD 33.1 billion to HKD 48.9 billion as of December 31, 2023[18]. - The Group's net debt-to-capital ratio stands at 17.0%, indicating a strong balance sheet amidst a high-interest environment[18]. - The company repaid borrowings and bonds totaling HKD 25,886 million in 2023, an increase from HKD 18,866 million in 2022, representing a rise of 37.5%[125]. - The company reported a net cash inflow from financing activities of HKD 13,030 million, a significant change from the net outflow of HKD 9,386 million in 2022[125]. Business Strategy and Growth Areas - The company aims to focus on long-term growth in the Greater China and Southeast Asia regions, particularly in real estate, beverages, and aviation sectors[3]. - The company is exploring new business areas such as healthcare to diversify its operations[3]. - The company plans to invest in core markets, with expectations of stable performance in the mainland China market in 2024[20]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[126]. Real Estate and Property Development - Swire Properties continues its HKD 100 billion investment plan, with nearly 60% committed to core market projects by March 2024[9]. - Swire Properties is developing major retail-led projects in Xi'an and Sanya, and has successfully acquired a 40% stake in two integrated development projects in Shanghai[9]. - The real estate segment includes approximately 34.4 million square feet of investment properties and hotels, with 24.4 million square feet already completed[23]. - The company plans to focus on developing high-end residential properties and expanding its presence in Hong Kong and mainland China markets[27]. - The total area of properties under development is projected to reach 34.4 million square feet, with significant projects in Hong Kong and mainland China[26]. Aviation Sector Performance - Cathay Pacific carried 18 million passengers in 2023, an increase of over five times compared to 2022, marking the first profitable year since 2019[10]. - The group achieved a net profit of HKD 97,889 million in 2023, a turnaround from a loss of HKD 66,623 million in 2022[85]. - Passenger revenue soared to HKD 55,951 million in 2023, a remarkable increase of 308.8% compared to HKD 13,686 million in 2022[83]. - The number of passengers carried reached 17,985 thousand, a staggering increase of 541.4% compared to 2,804 thousand in 2022[83]. - The group operated approximately 80 destinations by the end of 2023, with passenger capacity recovering to 70% of pre-pandemic levels[84]. Beverage Segment Performance - Total revenue for the beverage segment in 2023 was HKD 51,844 million, a decrease of 2.1% from HKD 54,225 million in 2022[68]. - EBITDA for the beverage segment was HKD 28,807 million, significantly up from HKD 5,545 million in the previous year[68]. - The company aims to enhance its brand portfolio and maintain a leading position in the beverage market through strategic partnerships with Coca-Cola[67]. - Swire Coca-Cola recorded a recurring profit of HKD 2.39 billion in 2023, slightly up from HKD 2.39 billion in 2022, despite the impact of the sale of the US franchise[13]. Sustainability and Environmental Initiatives - In 2023, the company implemented internal carbon pricing across its operations, with over 90% of greenhouse gas emissions coming from Swire Properties, Swire Coca-Cola, and Hong Kong Aircraft Engineering Company[19]. - As of the end of 2023, sustainable finance accounted for over 47% of the company's total financing[19]. - Cathay Pacific aims to increase the use of sustainable aviation fuel to 10% of total fuel consumption by 2030, with a goal of achieving net-zero carbon emissions by 2050[19]. Shareholder Returns and Dividends - The company paid dividends to shareholders amounting to HKD 16,108 million, compared to HKD 4,118 million in the previous year, reflecting a substantial increase of 290.5%[125]. - The company declared a special interim dividend of HKD 8.120 per share for 'A' shares and HKD 1.624 per share for 'B' shares, with no special dividend declared in 2022[135]. - The company plans to announce a second interim dividend of HKD 2.00 per share for 'A' shares and HKD 0.40 per share for 'B' shares in March 2024[135]. Market Challenges and Outlook - The Hong Kong office market is expected to remain weak in 2024, with increased competition from Central and Kowloon East putting downward pressure on rental rates[61]. - The outlook for mainland China indicates challenges due to sluggish domestic consumption, with expected pressure on profits from rising raw material prices and operating expenses[76]. - Despite economic uncertainties, Hong Kong's retail sales are projected to continue improving, supported by strong marketing activities and membership reward programs[61].

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 - The company reported a profit attributable to shareholders of HKD 1,891 million for the six months ended June 30, 2022, compared to a loss of HKD 792 million in the same period last year[7]. - Basic earnings per share for 'A' shares increased by 38% to HKD 1.15, while 'B' shares reported HKD 0.23[7]. - Revenue for the period was HKD 44,596 million, reflecting a 5% decrease from HKD 46,738 million in the previous year[7]. - Operating profit reached HKD 6,760 million, a 42% increase from HKD 4,751 million year-on-year[7]. - The group recorded a basic profit of HKD 1.729 billion for the first half of 2022, an increase from HKD 1.256 billion in the same period of 2021, reflecting a significant recovery despite ongoing challenges[8]. - The group recorded a loss of HKD 22.36 billion in the first half of 2022, compared to a loss of HKD 12.54 billion in the same period of 2021[16]. - The recurring basic profit for the first half of 2022 was HKD 12.49 billion, an increase from HKD 7.86 billion in the same period of 2021[16]. - The company reported a net profit attributable to the company for the first half of 2022 was HKD 1,520 million, a decrease of 12% compared to the same period in 2021[55]. Cash Flow and Debt - The company achieved a net cash inflow from operations of HKD 6,147 million, down 42% from HKD 10,657 million in the previous year[7]. - The net debt amounted to HKD 43,911 million, a 12% increase from HKD 39,081 million[7]. - The capital net debt ratio (excluding lease liabilities) rose to 13.6%, up from 12.2% in the previous year[7]. - The net debt-to-equity ratio as of June 30, 2022, was 13.6%, with available liquid funds amounting to HKD 39.1 billion, allowing the company to execute long-term plans despite short-term market volatility[14]. - The company’s cash and cash equivalents decreased to HKD 13,590 million as of June 30, 2022, from HKD 22,894 million as of December 31, 2021[88]. - The company reported a net cash outflow of HKD 9,165 million for the six months ended June 30, 2022[86]. - The total borrowings and debt securities as of June 30, 2022, amounted to HKD 83,108 million, with HKD 25,464 million remaining undrawn[88]. Investment and Development - Swire Properties announced a HKD 100 billion investment plan, with 50% allocated to mainland China, focusing on expanding its property portfolio in the Greater Bay Area[8]. - The new Grade A office building at Taikoo Place is expected to add approximately 218,000 square feet of space to the property portfolio[8]. - Swire Properties is progressing with the development of its seventh integrated project in mainland China, Xi'an Taikoo Li, which is adjacent to a UNESCO World Heritage site[8]. - The company is involved in six residential development projects, three in Hong Kong and others in Indonesia and Vietnam, along with land reserves in Miami, USA[20]. - The total area under development and planned is 29,731,000 square feet, with 12,337,000 square feet in Hong Kong, 8,611,000 square feet in Mainland China, and 5,832,000 square feet in the United States[34]. Market Conditions and Outlook - The outlook for the hotel business remains challenging, with recovery dependent on the full resumption of cross-border travel and the easing of restrictions in mainland China, Hong Kong, and Taiwan[17]. - The demand for office space in Hong Kong is expected to remain weak in the second half of 2022, reflecting rising vacancy rates and increased new supply[17]. - The retail market in Hong Kong is showing signs of recovery, supported by the government's consumption voucher scheme and the release of pent-up local demand[17]. - The company anticipates passenger capacity to reach pre-pandemic levels by the end of the year, while cargo capacity is expected to reach 65% of pre-pandemic levels[12]. - The company is optimistic about medium to long-term prospects despite ongoing short-term challenges, particularly in the aviation sector[12]. Dividends and Shareholder Returns - The interim dividend was increased by 15% to HKD 1.15 per 'A' share and HKD 0.23 per 'B' share compared to the first interim dividend in 2021[8]. - The company paid dividends amounting to HKD 2,402 million during the period, an increase from HKD 1,502 million in the previous year[108]. Segment Performance - Swire Coca-Cola's attributable profit for the first half of 2022 was HKD 1.152 billion, a decrease of 22% compared to the same period in 2021, primarily due to the impact of COVID-19 and rising costs[10]. - The real estate division's recurring basic profit was HKD 2.971 billion, slightly lower than HKD 3.029 billion in the first half of 2021, demonstrating resilience amid challenging market conditions[11]. - The aviation sector's performance improved due to a reduction in losses, with cargo operations showing strong performance despite a slight decrease in load factor[16]. - The hotel business continued to suffer losses due to COVID-19 and related travel restrictions[29]. Financial Position and Assets - The total assets of the group amounted to HKD 428,341 million as of June 30, 2022, with property investments valued at HKD 317,102 million[112]. - The company's total liabilities decreased to HKD 67,849 million from HKD 63,872 million at the end of 2021, reflecting changes in both current and non-current liabilities[106]. - The net asset value stood at HKD 321,941 million as of June 30, 2022, down from HKD 324,168 million at the end of 2021[106]. - The company reported a significant foreign exchange loss of HKD 2,383 million during the period, compared to a gain of HKD 711 million in the previous year[105]. Strategic Initiatives - The company is focusing on sustainable development and exploring new business areas such as healthcare and sustainable food[6]. - The company plans to continue expanding its healthcare services, with the opening of Shenzhen New Wind and Harmony Hospital in May 2022[13]. - The company plans to invest at least HKD 20 billion in the healthcare sector by 2030, having already invested HKD 1.7 billion in private healthcare services in major urban areas of mainland China[77].

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].

Financial Performance - The company reported a loss attributable to shareholders of HKD 792 million for the six months ended June 30, 2021, compared to a loss of HKD 7,737 million in the same period last year, representing a 90% decrease [5]. - Basic earnings per share for 'A' shares was HKD 0.84, a significant recovery from a loss of HKD 3.65 in the previous year [5]. - Revenue increased by 20% to HKD 46,738 million from HKD 39,056 million year-on-year [5]. - Operating profit reached HKD 4,751 million, a turnaround from an operating loss of HKD 1,670 million in the prior year [5]. - The group recorded a consolidated loss attributable to shareholders of HKD 7.92 billion in the first half of 2021, an improvement from a loss of HKD 77.37 billion in the same period of 2020 [10]. - The recurring basic profit for the first half of 2021 was HKD 786 million, compared to a recurring basic loss of HKD 1.23 billion in the same period of 2020 [10]. - The profit attributable to shareholders was HKD 1,992 million, up from HKD 1,045 million, marking an increase of 90.5% year-on-year [18]. - The group reported a total comprehensive income of HKD 1,639 million for the period, compared to a loss of HKD 792 million in the previous period [169]. Cash Flow and Debt Management - Cash generated from operations doubled to HKD 10,657 million, up 106% from HKD 5,176 million [5]. - The net debt decreased by 21% to HKD 39,081 million compared to HKD 49,277 million in the previous year [5]. - The company maintained a capital net debt ratio of 12.2%, down from 15.6% [5]. - The net debt-to-equity ratio as of June 30, 2021, was 12.2%, with available liquid funds amounting to HKD 54.6 billion [6]. - The company had total borrowings of HKD 63,114 million as of June 30, 2021, down from HKD 68,164 million at the beginning of the year [101]. - The net cash used in investment activities was HKD (6,198) million, reflecting a decrease from HKD (1,925) million in the previous year [100]. - The company’s cash and short-term deposits decreased to HKD 24,033 million from HKD 29,264 million at the end of 2020 [119]. - The group’s total liabilities reached HKD 110,556 million as of June 30, 2021, with non-controlling interests at HKD 56,307 million [128]. Dividends and Shareholder Returns - The interim dividend for 'A' shares was increased by 43% to HKD 1.00 from HKD 0.70 in the previous year [5]. - The first interim dividend declared is HKD 1.00 per 'A' share and HKD 0.20 per 'B' share, to be distributed on October 6, 2021 [11]. - The company aims to maintain a dividend policy that ensures sustainable growth, targeting to distribute at least half of recurring basic profits as dividends in the future [6]. - The company paid dividends amounting to HKD (2,386) million during the period, compared to HKD (3,360) million in the previous year [100]. Sector Performance - The property division was the largest source of profit for the group, with recurring basic profit of HKD 3.29 billion in the first half of 2021, compared to HKD 3.67 billion in the same period of 2020 [10]. - The beverage segment, Swire Coca-Cola, saw profits increase by 55% and 97% compared to the first half of 2020 and 2019, respectively [8]. - The aviation sector recorded a loss of HKD 3.25 billion in the first half of 2021, compared to a loss of HKD 9.25 billion in the same period of 2020 [10]. - The hotel business showed improvement, with performance in mainland China and the United States recovering [10]. - The property segment in mainland China recorded a valuation gain of HKD 1.181 billion, while the Hong Kong investment properties experienced a valuation loss of HKD 34.33 billion [8]. Future Outlook and Strategic Initiatives - The company is focused on sustainable development and long-term growth, emphasizing innovation and operational excellence [4]. - The company plans to continue investing in the healthcare sector and has identified multiple investment opportunities in the real estate sector in mainland China [6]. - The company expects the performance of Swire Properties to continue improving, particularly in mainland China, with several new real estate projects announced [6]. - The company plans to enhance its property portfolio through strategic partnerships and new developments in key markets [23]. - The company plans to invest at least HKD 20 billion in the healthcare sector by 2030, establishing it as a significant business [11]. Market Conditions and Challenges - The hotel business in Hong Kong remains challenging due to COVID-19 and travel restrictions, with recovery dependent on vaccination progress and border reopening [39]. - The real estate sector is expected to see strong retail market prospects in mainland China, while the outlook for Hong Kong remains uncertain [12]. - The anticipated completion of the redevelopment project "Taikoo Place Two" is expected in the first half of 2022, with a total floor area of approximately 1 million square feet [28]. - The company is adapting to market conditions and managing costs prudently, with expectations for the second half of 2021 to be similar to the first half [87].

Fleet and Operations - The company operates a fleet of 239 aircraft as of the end of 2020, including subsidiaries Hong Kong Express and Dragonair[10]. - Cathay Pacific operated a fleet of 199 aircraft as of December 31, 2020, with 43 new aircraft on order for future delivery[130]. - As of December 31, 2020, the Swire Ocean Development Group operated a fleet of 61 vessels, including supply and construction vessels[200]. - The total number of aircraft in the Cathay Pacific Group fleet as of December 31, 2020, was 239, with 92 passenger aircraft (44% of the fleet) relocated outside Hong Kong[143]. Financial Performance - The company's return on equity decreased to -4.1% from 3.3%, a decline of 7.4 percentage points[12]. - The earnings per share for 'A' shares dropped to HKD -7.32 from HKD 6.00, while 'B' shares fell to HKD -1.46 from HKD 1.20[12]. - Total revenue for the year was HKD 80,032 million, a decrease of 7% compared to HKD 85,652 million in the previous year[12]. - Operating profit plummeted by 80% to HKD 2,695 million from HKD 13,792 million[12]. - The company recorded a basic loss of HKD 3.969 billion in 2020, compared to a profit of HKD 17.797 billion in 2019, marking the first basic loss since its listing in 1959[19]. - The recurring basic loss for 2020 was HKD 609 million, a significant decline from a profit of HKD 7.221 billion in 2019[19]. - The company reported a consolidated loss attributable to shareholders of HKD 10.99 billion for 2020, compared to a profit of HKD 9.07 billion in 2019[32]. - The group’s attributable profit for 2020 was HKD 3,388 million, down 69.1% from HKD 11,007 million in 2019[56]. - The basic attributable profit decreased to HKD 12,705 million from HKD 24,143 million in 2019, reflecting a decline of 47.3%[57]. Revenue and Sales - The beverage division reported annual sales of 1.743 billion standard cases in 2020[172]. - Total revenue increased by 2% to HKD 45,657 million, including revenue from a joint venture, despite a 2% decline in sales volume to 1.743 billion cases[177]. - Revenue from the mainland China market was HKD 22,942 million, a 1% increase from HKD 22,087 million in 2019, while sales volume decreased by 4%[176]. - The company experienced a decline in revenue and sales volume in Hong Kong, with revenue down 6% to HKD 2,199 million and sales volume down 12%[176]. - The company's revenue from the United States market was HKD 18,008 million, an increase from HKD 17,196 million in 2019, with a sales volume increase of 4%[176]. Sustainability and Corporate Governance - The company aims to maintain sustainable growth and long-term shareholder value through prudent financial management and investment in high-potential markets[9]. - The company is committed to sustainable development and believes it contributes to long-term growth through innovation and efficiency improvements[9]. - The company has a strong commitment to corporate governance and maintaining its brand reputation[9]. - The greenhouse gas emissions reduced by 57% to 8.4 million tons of CO2 equivalent from 19.3 million tons[12]. - The energy consumption decreased by 58% to 112.1 million gigajoules from 264.3 million gigajoules[12]. Challenges and Market Outlook - The outlook for 2021 remains challenging due to ongoing pandemic impacts, with expected recurring losses in the first half of the year[23]. - The company’s operational environment in 2020 was extremely challenging, with passenger revenue dropping to only 2-3% of pre-pandemic levels[32]. - The hotel business in Hong Kong is facing challenges, with recovery dependent on travel restrictions and vaccination progress[34]. - The company anticipates continued pressure on retail rents in Hong Kong if the adverse effects of the COVID-19 pandemic persist[114]. Investment and Development - The company plans to focus on investment opportunities in the Greater China region, with a total capital commitment of HKD 26.7 billion[19]. - The company plans to invest heavily in capital expenditures despite the challenging market conditions[34]. - The company is expanding its product and packaging portfolio in the Coca-Cola segment, investing in production assets and digital capabilities[33]. - The company completed the sale of two office buildings in Miami in December 2020, indicating ongoing asset management strategies[33]. - The company has committed to provide capital contributions of HKD 13,327 million to joint ventures in mainland China as of December 31, 2020[108]. Employee and Operational Metrics - The company employs over 34,000 staff in Hong Kong and more than 34,000 in mainland China, totaling over 86,000 employees globally[10]. - The group employed over 25,600 staff globally, with approximately 80% based in Hong Kong as of December 31, 2020[130]. - The average age of the fleet was 10.1 years in 2020, slightly down from 10.3 years in 2019[135]. Sector Performance - The aviation sector, particularly Cathay Pacific, faced severe challenges, recording a loss of HKD 21.6 billion for the year[19]. - The real estate sector contributed the most to the group's performance, with recurring basic profit of HKD 45.84 billion in 2020, up 31% from HKD 35.28 billion in 2019[32]. - The recurring operating profit by region for 2020 was 40% from Mainland China, 49% from Hong Kong, 8% from the USA, and 3% from other regions[31].