Business Operations - Swire Properties operates over 2,200 retail outlets in its shopping malls, employing approximately 72,000 people in its office buildings in Hong Kong[7]. - Swire Coca-Cola distributes products to 782 million people across Greater China, the United States, and Cambodia, including 21 carbonated beverage brands[6]. - Cathay Pacific, along with its subsidiaries, operated a fleet of 222 aircraft by the end of 2022, providing services to 81 destinations across 30 countries and regions[7]. - Swire Group employs over 29,000 staff in Hong Kong and more than 35,000 in mainland China, with a global workforce of nearly 80,000[7]. - The company has established a solid business presence in key cities in mainland China, including Beijing, Guangzhou, Chengdu, Shanghai, Xi'an, and Sanya[7]. 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[8]. - The basic earnings per share for 'A' shares increased by 25% to HKD 2.81 in 2022, up from HKD 2.24 in 2021[8]. - The total revenue decreased by 1% to HKD 91,693 million in 2022, down from HKD 92,830 million in 2021[8]. - The net cash generated from operations fell by 22% to HKD 12,043 million in 2022, compared to HKD 15,453 million in 2021[8]. - The net debt increased by 47% to HKD 56,759 million in 2022, up from HKD 38,655 million in 2021[8]. - The company's equity return increased to 1.6% in 2022 from 1.3% in 2021, representing a rise of 0.3 percentage points[8]. Investment and Development - The company aims to invest in the healthcare sector, particularly in private healthcare services in major urban areas in mainland China and Southeast Asia[7]. - The company is a long-term investor, focusing on maintaining controlling interests in its businesses to achieve sustainable returns[4]. - The company has made significant progress in its investment plan of HKD 100 billion announced in March 2022, with HKD 39 billion already allocated to new large property projects[19]. - Swire Properties has entered into a joint venture to develop the Xi'an Taikoo Li project, marking its seventh development project in mainland China[17]. - The company plans to invest HKD 100 billion over the next decade in property development projects in Hong Kong and mainland China, with HKD 30 billion allocated for Hong Kong projects[45]. Sustainability and Corporate Governance - Swire Group emphasizes sustainable development and long-term growth, focusing on core sectors in Greater China and Southeast Asia[4]. - The company maintains a strong commitment to corporate governance and sustainable practices, believing that these contribute to long-term growth[4]. - The company's sustainable development performance showed an 11% reduction in greenhouse gas emissions to 649 thousand tons of CO2 equivalent in 2022, down from 728 thousand tons in 2021[8]. - 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[21]. Market Challenges and Opportunities - The beverage segment faced challenges due to pandemic measures and rising costs, with Swire Coca-Cola reporting a profit of HKD 23.92 billion in 2022, down 6% from HKD 25.49 billion in 2021[19]. - The retail market in mainland China faced challenges due to pandemic-related measures, impacting sales and rental income[40]. - The group is actively seeking opportunities in mainland China and Southeast Asia for further growth in 2023[22]. - The company is optimistic about opportunities in the Greater Bay Area and continues to strengthen its position as an international financial and aviation hub[17]. Dividends and Share Repurchases - The company announced a second interim dividend of HKD 1.85 per 'A' share and HKD 0.37 per 'B' share, resulting in a total annual dividend of HKD 3.00 per 'A' share and HKD 0.60 per 'B' share, which is a 15% increase from 2021[19]. - The company repurchased 39,383,000 'A' shares and 44,425,000 'B' shares during 2022, with a total cash consideration of HKD 2.6 billion[18]. Sector-Specific Performance - The healthcare segment recorded a loss of HKD 170 million in 2022, compared to a loss of HKD 85 million in 2021, including a goodwill impairment of HKD 163 million related to Colombia China[191]. - The hotel segment reported a loss of HKD 259 million, compared to a loss of HKD 174 million in 2021[34]. - The automotive segment reported revenue of HKD 5.636 billion, a slight decrease from HKD 5.689 billion in 2021[192]. - The food segment recorded a loss of HKD 487 million in 2022, compared to a loss of HKD 45 million in 2021[192]. Future Outlook - The group expects significant positive impacts on its business in 2023 as COVID-19 restrictions are lifted in Hong Kong and mainland China, leading to a strong recovery in airline operations[22]. - The company anticipates a recovery in sales volume starting in the fourth quarter of 2022[143]. - The company expects the retail market in Hong Kong to recover following the reopening of borders with mainland China[196].

Financial Performance - Company's attributable profit for 2022 was HKD 1,891 million, compared to a loss of HKD 792 million in 2021[6] - Basic profit increased by 38% to HKD 1,729 million in 2022 from HKD 1,256 million in 2021[6] - Revenue decreased by 5% to HKD 44,596 million in 2022 from HKD 46,738 million in 2021[6] - Operating profit rose by 42% to HKD 6,760 million in 2022 from HKD 4,751 million in 2021[6] - Earnings per share for 'A' shares increased by 38% to HKD 1.15 in 2022 from HKD 0.84 in 2021[6] - Dividend per share for 'A' shares increased by 15% to HKD 1.15 in 2022 from HKD 1.00 in 2021[6] - Total equity (including non-controlling interests) increased by 1% to HKD 321,941 million in 2022 from HKD 319,136 million in 2021[6] - Cash flow from operations decreased by 42% to HKD 6,147 million in 2022 from HKD 10,657 million in 2021[6] - Swire Properties' basic profit for the first half of 2022 was HK$1.729 billion, compared to HK$1.256 billion in the same period last year[7] - Swire Coca-Cola's attributable profit for the first half of 2022 was HK$1.152 billion, a 22% decrease compared to the same period last year[9] - Cathay Pacific's loss decreased by 34% to HK$5 billion in the first half of 2022[10] - The company's attributable profit for the first half of 2022 was HKD 1.891 billion, compared to a loss of HKD 792 million in the first half of 2021[15] - The company's basic attributable profit, excluding investment property revaluations, was HKD 1.729 billion in the first half of 2022, compared to HKD 1.256 billion in the first half of 2021[15] - The company's recurring basic profit was HKD 1.249 billion in the first half of 2022, compared to HKD 786 million in the first half of 2021[15] - The company's property sector recorded a recurring basic profit of HKD 2.971 billion in the first half of 2022, compared to HKD 3.029 billion in the first half of 2021[15] - The company's Coca-Cola business recorded a profit of HKD 1.152 billion in the first half of 2022, a 22% decrease compared to HKD 1.471 billion in the first half of 2021[15] - The company's Coca-Cola business revenue increased by 0.5% to HKD 26.592 billion in the first half of 2022, while sales volume decreased by 8% to 896 million cases[15] - The company's aviation business achieved positive cash flow in the second quarter of 2022, with passenger capacity improving to 11% of pre-pandemic levels[15] - The group generated HKD 6.1 billion from operating activities and HKD 1 billion from business disposals in the first half of 2022[16] - Total revenue for the six months ended June 30, 2022, was HKD 6,698 million, compared to HKD 9,068 million in the same period in 2021[20] - The company's attributable profit for the six months ended June 30, 2022, was HKD 4,318 million, up from HKD 1,992 million in the same period in 2021[20] - The company's basic attributable profit for the six months ended June 30, 2022, was HKD 4,120 million, compared to HKD 4,490 million in the same period in 2021[22] - The company's recurring basic attributable profit for the six months ended June 30, 2022, was HKD 3,623 million, slightly down from HKD 3,693 million in the same period in 2021[22] - The company's property investment segment recorded a recurring basic profit of HKD 2,971 million for the six months ended June 30, 2022, down from HKD 3,029 million in the same period in 2021[23] - The company's retail property portfolio in Hong Kong was adversely affected by the fifth wave of the COVID-19 pandemic, particularly in the first quarter of 2022, but saw a recovery in foot traffic and tenant sales in May and June due to the easing of social distancing measures and the government's consumption voucher scheme[23] - The company's shopping malls in mainland China were affected by new waves of COVID-19 outbreaks, with malls in Shanghai closing in April and May and retail sales in Beijing being adversely impacted by outbreaks in May and June[24] - Swire Coca-Cola's revenue for the first half of 2022 was HKD 26.331 billion, with EBITDA of HKD 2.773 billion and operating profit of HKD 1.603 billion[43] - In Mainland China, Swire Coca-Cola's revenue for the first half of 2022 was HKD 13.029 billion, with EBITDA of HKD 1.514 billion and attributable profit of HKD 586 million[44] - Revenue in the US increased to HKD 10,567 million in the first half of 2022, up from HKD 9,269 million in the same period in 2021[45] - Total revenue for the first half of 2022 was HKD 26,592 million, a slight increase of 0.5% compared to HKD 26,466 million in the first half of 2021[45] - EBITDA margin for the first half of 2022 decreased to 11.1% from 12.4% in the first half of 2021[46] - EBIT margin for the first half of 2022 dropped to 6.8% from 8.5% in the first half of 2021[46] - Total sales volume decreased by 10% to 896 million cases in the first half of 2022[48] - Revenue from carbonated drinks decreased by 4%, while revenue from water and juice drinks fell by 27% and 3% respectively in the first half of 2022[48] - Revenue from energy drinks decreased by 3%, while revenue from premium categories such as coffee and tea drinks increased by 24% and 19% respectively in the first half of 2022[48] - Revenue in Hong Kong decreased by 8%, with sales volume dropping by 10% in the first half of 2022[48] - EBITDA increased by 12%, while EBIT decreased by 10%[49] - Total sales volume increased by 1%[49] - EBITDA margin rose from 12.0% in H1 2021 to 14.6% in H1 2022, while EBIT margin decreased from 7.6% to 7.4%[49] - Taiwan business profit decreased by 12% to HKD 53 million in H1 2022[49] - US business profit increased by 34% to HKD 554 million in H1 2022[49] - Revenue in local currency increased by 13% in the US, driven by price increases and slight volume growth[49] - Aviation sector recorded a loss of HKD 2.236 billion in H1 2022, compared to a loss of HKD 3.254 billion in H1 2021[51] - Cathay Pacific Group's loss attributable to shareholders was HKD 4.999 billion in H1 2022, compared to HKD 7.565 billion in H1 2021[52] - Revenue from carbonated drinks increased by 19%, while non-carbonated drinks increased by 5%[49] - Passenger revenue increased by 177.6% to HKD 2,068 million in the first half of 2022 compared to the same period in 2021[53][54] - Cargo revenue rose by 9.3% to HKD 12,148 million in the first half of 2022, with cargo yield increasing by 69.7% to HKD 5.72[53][57] - Available seat kilometers decreased by 26.6% to 3,059 million, while revenue passenger kilometers increased by 129.7% to 1,810 million in the first half of 2022[53] - Passenger load factor improved by 40.3 percentage points to 59.2% in the first half of 2022 compared to the same period in 2021[53][54] - Fuel costs increased by 55% to HKD 1,458 million in the first half of 2022, while non-fuel costs decreased by 5% to HKD 16,056 million[55] - Cargo load factor decreased by 5.6 percentage points to 75.8% in the first half of 2022, with cargo volume decreasing by 4.2% to 526 thousand tons[53][57] - The total fleet size of Cathay Pacific, HK Express, and Air Hong Kong was 228 aircraft as of June 30, 2022[56] - HK Express recorded a loss in the first half of 2022 due to strict travel restrictions and quarantine requirements affecting its operations[56] - Air Hong Kong reported a profit in the first half of 2022, despite challenges from quarantine requirements for Hong Kong-based crew[57] - The cost per available tonne kilometer (including fuel) increased by 32.4% to HKD 5.88 in the first half of 2022[53] - Cathay Pacific aims to increase passenger capacity to up to 25% of pre-pandemic levels and cargo capacity to up to 65% of pre-pandemic levels by the end of the year[60] - Cathay Pacific's total fleet as of June 30, 2022, consists of 228 aircraft, with an average age of 10.9 years[58] - Cathay Pacific has 21 Boeing 777-9 aircraft on order, with deliveries expected from 2024 onwards[58] - Cathay Pacific holds an 18.13% stake in Air China and a 24% stake in Air China Cargo as of June 30, 2022[59] - Air China's financial performance for the six months ended March 31, 2022, was negatively impacted by the COVID-19 pandemic[59] - Cathay Pacific expects improved performance in the second half of 2022 compared to the first half, but challenges remain for affiliated companies[60] - Revenue for the first half of 2022 reached HKD 6,557 million, a 21.4% increase compared to HKD 5,402 million in the same period of 2021[62] - Engine segment revenue grew significantly to HKD 2,569 million in H1 2022, up 52.2% from HKD 1,688 million in H1 2021[62] - Share of profits attributable to the company was HKD 166 million in H1 2022, compared to HKD 310 million in H1 2021, excluding non-recurring items[62] - Total base maintenance sold hours increased by 3% to 4.37 million hours in H1 2022 compared to 4.25 million hours in H1 2021[63] - Xiamen Taikoo's base maintenance sold hours grew 18% to 1.79 million hours in H1 2022[63] - HAECO Americas' base maintenance sold hours decreased by 11% to 1.29 million hours in H1 2022[63] - Engine overhaul volume at HAESL increased by 19% to 129 engines in H1 2022[63] - Cabin business recorded a loss of HKD 49 million in H1 2022, a 2% increase in loss compared to HKD 48 million in H1 2021[64] - HAECO Hong Kong's line maintenance handled 23,600 flights in H1 2022, a 7% increase from 22,100 flights in H1 2021[63] - Xiamen Taikoo benefited from unrealized foreign exchange gains in H1 2022, offsetting the impact of reduced government support in HAECO Americas[64] - The components business recorded a profit of HKD 230 million in the first half of 2022, a 32% decrease compared to the same period in 2021, while revenue increased by 23%[65] - The engine business saw a profit of HKD 250 million in the first half of 2022, an 81% increase year-over-year, with revenue rising by 52% due to increased demand for engine overhaul services[65] - Hong Kong Aircraft Engineering Company (HAECO) Xiamen completed 25 performance restoration projects and 6 quick-turn projects for GE90 engines in the first half of 2022, compared to 13 and 5 respectively in the same period in 2021[65] - The trading and industrial segment reported a loss of HKD 311 million in the first half of 2022, including non-recurring losses of HKD 367 million from goodwill impairment and HKD 57 million from long-term asset impairment at Qinyuan Food Company[69][70] - Swire Resources recorded a profit of HKD 13 million in the first half of 2022, compared to a loss of HKD 14 million in the same period in 2021, benefiting from the Hong Kong government's consumption voucher scheme and employment support program[71] - Global engine support services saw reduced profits in the first half of 2022 due to pandemic-related travel restrictions and decreased engine storage revenue[65] - The company expects stable demand for base maintenance services in the second half of 2022, with a gradual recovery in Hong Kong's line maintenance workload depending on the lifting of travel restrictions[65] - HAECO Xiamen is undergoing pre-construction work for the relocation to Xiamen's new airport, which is critical for its operations from 2026 onwards[65] - Net profit of Taikoo Environmental Services decreased to HKD 23 million in the first half of 2022 from HKD 41 million in the same period last year, primarily due to the absence of non-recurring gains from acquiring the remaining 50% equity of a joint venture[72] - Taikoo Motors' net profit increased to HKD 970 million in the first half of 2022 from HKD 820 million in the same period last year, with car sales rising by 3% to 8,330 units, despite a 3% decline in revenue due to unfavorable sales mix[72] - Taikoo Food Group recorded a net loss of HKD 437 million in the first half of 2022, compared to a net loss of HKD 31 million in the same period last year, with Qinyuan Food Company contributing a net loss of HKD 444 million, including non-recurring losses of HKD 367 million for goodwill impairment[72] - Taikoo Sugar Company's net profit decreased to HKD 7 million in the first half of 2022 from HKD 9 million in the same period last year, with a 6% decline in sugar product sales in Hong Kong but an increase in mainland China[72] - The company sold 6.7% of its equity in Cadeler A/S in February 2022, reducing its stake to 18.13%, and completed the sale of its 100% interest in Taikoo Offshore Group (excluding Cadeler) to Tidewater Inc. in April 2022[73] - Basic profit attributable to shareholders was HKD 1,729 million in the first half of 2022, compared to HKD 1,256 million in the same period last year, with adjustments for investment property valuation changes and deferred taxes[74] - The company expects Taikoo Motors to receive more car supplies in the second half of 2022, but performance is anticipated to be weaker due to unfavorable sales mix and exchange rate fluctuations[72] - Taikoo Environmental Services' performance is expected to be worse in the second half of 2022 compared to the first half[72] - Qinyuan Food Company plans to continue integrating its retail network and product categories, enhancing supply chain flexibility and efficiency to improve long-term performance[72] - Taikoo Sugar Company's food service business is expected to perform better in the second half of 2022 due to price increases, despite ongoing challenges from COVID-19 restrictions[72] - The company's basic profit attributable to shareholders for the six months ended June 30, 2022, was HKD 1,729 million, compared to HKD 1,256 million in the same period in 2021[75] - The recurring basic profit for the six months ended June 30, 2022, was HKD 1,249 million, up from HKD 786 million in the same period in 2021[75] - The property division contributed HKD 2,971 million to the recurring basic profit for the six months ended June 30, 2022, slightly down from HKD 3,029 million in the same period in 2021[76] - The beverage division's recurring basic profit for the six months ended June 30, 2022, was HKD 1,152 million, compared to HKD 1,471 million in the same period in 2021[76] - The Cathay Pacific Group reported a loss of HKD 2,385 million for the six months ended June 30, 2022, an improvement from a loss of HKD 3,146 million in the same period in 2021[76] - Cash generated from operations for the six months ended June 30, 2022, was HKD 6,147 million, down from HKD 10,657 million in the same period in 2021[77] - The company's total borrowings and lease liabilities as of June 30, 2022, were HKD 57,508 million and HKD 5,059 million, respectively[78] - As of June 30, 2022, the company had HKD 83,108 million in committed financing, of which HKD 25,464 million (31%) remained undrawn[79] - The company held HKD 13,597 million in bank balances and short-term deposits as of June 30, 2022, compared to HKD 22,894 million as of December 31, 2021[79] - Total

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]. - The company reported a significant reduction in losses for its aviation segment, with a notable decrease in impairment charges [15]. - The company reported a net profit of HKD 15.5 billion from operations, with an additional HKD 7.4 billion generated from asset sales and capital investments totaling HKD 13.2 billion [29]. - The group reported a consolidated profit attributable to shareholders of HKD 3.36 billion in 2021, a significant improvement from a loss of HKD 10.99 billion in 2020 [28]. - The company reported a loss of HKD 1,931 million from investment property valuation in 2021, 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]. - Basic earnings per share for 'A' shares improved to HKD 3.53 from a loss of HKD 2.64 [10]. - Basic earnings per share for 'B' shares increased to HKD 0.71 from a loss of HKD 0.53 [10]. - The company aims to maintain a dividend policy that targets continuous growth, planning to distribute no less than 1/3 of its earnings [15]. - The group plans to maintain a dividend policy that ensures at least half of the recurring net profit is distributed as dividends, excluding contributions from Cathay Pacific [28]. 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 is focusing on expanding its business in healthcare and sustainable food sectors under a new division called "Swire Investments" [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 company plans to invest HKD 7 billion in a new retail-led integrated development project in Xi'an, China [15]. - Swire Group aims to invest over HKD 20 billion in healthcare businesses in mainland China over the next decade [18]. Market and Operational Insights - The beverage sector, specifically Swire Coca-Cola, achieved a record profit, increasing by 23% compared to the previous year, with overall sales rising by 8% [16]. - The company emphasized digital innovation and improved product offerings as key drivers for future growth [28]. - The company is actively developing new products to meet changing consumer preferences, particularly in the beverage sector [29]. - 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 is committed to sustainable development, integrating environmental, social, and governance elements into its operations [16]. Real Estate and Property Development - 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 [16]. - The real estate sector's recurring net profit, excluding gains from property sales, was HKD 5.82 billion in 2021, stable compared to HKD 5.83 billion in 2020 [28]. - 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 and planned reached 27,046 thousand square feet, indicating ongoing expansion efforts [43]. - The company has a 50% interest in the South Island Place project, which had an occupancy rate of 88% as of December 31, 2021 [56]. Aviation Sector Performance - Cathay Pacific recorded a significant reduction in losses, down 74% to HKD 5.5 billion from HKD 21.6 billion, attributed to strong cargo performance and effective cost management [16]. - Cathay Pacific recorded a loss attributable to shareholders of HKD 55.27 billion in 2021, compared to a loss of HKD 216.48 billion in 2020 [162]. - The airline's passenger revenue for 2021 was HKD 4.34 billion, a decrease of 62% compared to 2020, with passenger traffic down 85% [163]. - Cargo revenue increased by 32% to HKD 32.37 billion in 2021, with a cargo load factor rising by 8.1 percentage points to 81.4% [165]. - The average age of the fleet increased to 10.5 years in 2021 from 10.1 years in 2020 [160]. Challenges and Future Outlook - The company anticipates maintaining passenger capacity at approximately 20% of pre-pandemic levels if current restrictions persist [175]. - The company expects significant revenue growth in mainland China for 2022, driven by improved product and packaging mix [145]. - The company anticipates that raw material costs and operating expenses will increase, putting pressure on profits [145]. - The hotel business in Hong Kong is facing challenges due to COVID-19, but domestic tourism in mainland China is expected to continue recovering [116]. - The company continues to focus on effective cash and cost management amid ongoing operational challenges [171].

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, recovering from a loss of HKD 3.65 in the previous year, while 'B' shares reported HKD 0.17, compared to a loss of HKD 0.73[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 significant recovery from a loss of HKD 1,670 million in the previous year[5]. - The company generated cash from operations of HKD 10,657 million, up 106% from HKD 5,176 million in the prior year[5]. - The group reported a recurring basic profit of HKD 786 million for the first half of 2021, compared to a loss of HKD 123 million in the same period of 2020[6]. - The group’s total revenue for the six months ended June 30, 2021, was HKD 46,738 million, an increase from HKD 39,056 million for the same period in 2020, representing a growth of approximately 19.3%[130]. - The total profit for the group was HKD 17,884 million, compared to HKD 14,962 million for the same period in 2020, reflecting a growth of approximately 19.4%[117]. Debt and Equity - The net debt decreased by 21% to HKD 39,081 million from HKD 49,277 million, improving the capital net debt ratio to 12.2%[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’s total borrowings and bonds decreased to HKD 63,114 million as of June 30, 2021, from HKD 68,164 million at the beginning of the year[101]. - The company’s total liabilities decreased to HKD 110,000 million from HKD 115,000 million, reflecting improved financial stability[119]. - The net debt-to-equity ratio was 12.2% as of June 30, 2021, down from 15.6% in 2020[109]. - The total amount of borrowings and lease liabilities due within one year was HKD 17.956 billion, representing 27% of total liabilities[105]. Dividends - The company declared an interim dividend of HKD 1.00 per 'A' share, a 43% increase from HKD 0.70 in the previous year[5]. - The interim dividend was increased by 43% to HKD 1.00 per 'A' share and HKD 0.20 per 'B' share, compared to the first interim dividend in 2020[6]. - The company aims to maintain a dividend policy of distributing at least half of recurring basic profit, excluding contributions from its associate company, Cathay Pacific[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]. Real Estate and Property - The property division generated a 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 real estate sector was the largest source of profit for the group, contributing HKD 6.53 billion from recurring basic profit excluding gains from the sale of investment properties[10]. - The property investment portfolio in Hong Kong totals 12 million square feet, with an additional 1.2 million square feet under construction[13]. - The total revenue for the real estate segment reached HKD 9,068 million, a significant increase from HKD 6,551 million in the previous year, representing a growth of 38.5%[16]. - The valuation loss on investment properties was HKD 2,513 million, a decrease from HKD 2,601 million, indicating improved asset performance[18]. Aviation Sector - Cathay Pacific's losses decreased from HKD 99 billion to HKD 76 billion, aided by strong cargo performance and cost-saving measures[9]. - The aviation sector recorded a loss of HKD 3.25 billion in the first half of 2021, while the loss for the same period in 2020 was HKD 9.25 billion, showing a reduction in losses[10]. - Cathay Pacific expects to adjust passenger capacity to 30% of pre-pandemic levels by Q4 2021, depending on operational and passenger restrictions[12]. - The aviation segment generated revenue of HKD 9,047 million, reflecting a decrease of 3% compared to the previous period[123]. - Cathay Pacific's passenger revenue for the first half of 2021 was HKD 745 million, a decrease of 92.8% compared to the same period in 2020[47]. Beverage Segment - 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 beverage segment reported revenues of HKD 26,832 million for the six months ended June 30, 2021, compared to HKD 21,251 million for the same period in 2020, representing a growth of approximately 26.5%[65]. - In mainland China, the attributable profit for the first half of 2021 was HKD 1.02 billion, a 75% increase year-on-year, with revenue in local currency up by 25%[71]. - Total revenue from Hong Kong increased by 28% to HKD 27.55 billion, with sales volume rising by 16% to 974 million cases[71]. - The EBITDA margin for the beverage segment improved to 12.0% in the first half of 2021, compared to 11.3% in the same period of 2020[70]. Investment and Future Plans - The company aims to maintain long-term growth through sustainable development and innovation, focusing on the Greater China region[4]. - The company plans to continue investing in the healthcare sector and has identified multiple investment opportunities in mainland China[6]. - The group plans to invest at least HKD 20 billion in the healthcare sector by 2030, establishing it as a significant business[11]. - The company has ongoing development projects in Hong Kong, Indonesia, and Vietnam, with land reserves in Miami, USA, indicating a strategic focus on market expansion[15]. - The company is exploring potential mergers and acquisitions to enhance its market position[123].

Company Operations - The company operates over 2,000 retail points in its shopping malls under the property division, with an estimated 70,000 people working in its office buildings[10]. - At the end of 2020, the beverage division distributed Coca-Cola products to a population of 741 million in Greater China and the United States, including 15 carbonated and 45 non-carbonated beverage brands[10]. - Cathay Pacific, along with its subsidiaries, operated a fleet of 239 aircraft by the end of 2020, connecting Hong Kong to 119 destinations across 35 countries[10]. - The company employed over 34,000 staff in Hong Kong and over 30,000 in mainland China, with a total global workforce exceeding 86,000[10]. - The marine services division operated a fleet of 61 vessels by the end of 2020, providing support services to the offshore energy industry[10]. - The group’s bakery business operated 546 stores in Southwest China by the end of 2020[10]. - The company has developed six retail-focused integrated projects in major cities in mainland China, including Beijing, Shanghai, Guangzhou, and Chengdu[10]. 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 -7.32 HKD from 6.00 HKD, while 'B' shares fell to -1.46 HKD from 1.20 HKD[12]. - Total revenue for the year was 80,032 million HKD, a decrease of 7% from 85,652 million HKD[12]. - Operating profit plummeted by 80% to 2,695 million HKD from 13,792 million HKD[12]. - The net cash inflow from operations increased by 18% to 15,124 million HKD from 12,817 million HKD[12]. - The net debt decreased by 17% to 38,900 million HKD from 46,688 million HKD[12]. - The total equity, including non-controlling interests, declined by 3% to 319,146 million HKD from 329,494 million HKD[12]. - The basic loss per share for 'A' shares was -2.64 HKD compared to a profit of 11.85 HKD in the previous year[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 regular basic loss for 2020 was HKD 609 million, a significant decline from a profit of HKD 7.221 billion in 2019[19]. - The capital debt ratio at the end of 2020 was 12.2%, down from 14.2% at the end of 2019, indicating a stable financial position[19]. - The company’s property portfolio value slightly decreased, contributing to a drop in equity return from 3.3% in 2019 to -4.1% in 2020[19]. - The aviation sector, particularly Cathay Pacific, faced severe challenges, resulting in a loss of HKD 21.6 billion for the year[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 recurring basic loss after excluding significant non-recurring items for 2020 was HKD 6.09 billion, while in 2019, it recorded a profit of HKD 72.21 billion[32]. - The real estate sector contributed the largest share of the company's performance, with recurring basic profit of HKD 58.34 billion in 2020, down from HKD 62.69 billion in 2019[32]. - The aviation sector recorded a loss of HKD 9.75 billion in 2020, compared to a profit of HKD 1.55 billion in 2019, significantly impacted by the COVID-19 pandemic[32]. - The company’s regular profit from the trading and industrial sector was HKD 1.2 billion in 2020, compared to HKD 4.1 billion in 2019[32]. - The company announced a second interim dividend of HKD 1.00 per 'A' share and HKD 0.20 per 'B' share for 2020[32]. Sustainability and Governance - The company is committed to sustainable development and long-term growth, focusing on creating stable dividend returns for shareholders[9]. - The company maintains a strong corporate governance standard and aims to enhance its brand and reputation[9]. - The company is a long-term investor, emphasizing holding controlling interests in businesses for sustained growth[9]. - Greenhouse gas emissions reduced by 57% to 8.4 million tons CO2 equivalent from 19.3 million tons[12]. - Energy consumption decreased by 58% to 112.1 million gigajoules from 264.3 million gigajoules[12]. - The company launched "SwireTHRIVE 2.0" in 2020, focusing on five priority areas including climate, water resources, waste, employees, and community[19]. Market Outlook and Challenges - The company anticipates regular losses in the first half of 2021 due to ongoing challenges from the COVID-19 pandemic[23]. - The company remains confident in its long-term development, supported by the vibrant economic growth in Mainland China and its solid financial position[23]. - The company expects a substantial increase in revenue from its U.S. operations in 2021[34]. - The company anticipates that the demand for high-end residential properties in Jakarta will remain stable due to urbanization and a growing middle class[34]. - The hotel business in Hong Kong is facing challenges, with recovery dependent on travel restrictions and vaccination progress[34]. - The company expects a moderate recovery in the office market in Guangzhou, Shanghai, and Beijing, but faces challenges due to new supply and weak demand[113]. - The company plans to invest heavily in capital expenditures despite the weak market conditions[34]. - The company plans to focus on investment opportunities in the Greater China region, with a total capital commitment of HKD 26.7 billion[19]. Retail and Property Performance - 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[50]. - The total area of completed properties was 22,681 thousand square feet, down from 22,950 thousand square feet in 2019[55]. - The total area of properties under development and awaiting development is 27,046 thousand square feet, an increase from 26,520 thousand square feet in 2019[55]. - The occupancy rate for Taikoo Place was 98% as of December 31, 2020, while the overall office portfolio was 96% leased[72][71]. - The occupancy rate for South Island Place was 87% as of December 31, 2020, with the company holding a 50% interest in this development[73]. - The rental income for the newly completed retail development in Shanghai, Qiantan Taikoo Li, is expected to begin trial operations in the second half of 2021[79]. - The company provided rental support to tenants during the pandemic, which was amortized over the remaining lease terms[74]. - The rental income from mainland China properties for 2020 was HKD 2.491 billion, an increase of 5% compared to 2019[78]. - The rental income for Guangzhou Taikoo Hui, Chengdu Ocean Taikoo Li, and Shanghai Xingye Taikoo Hui increased by 36%, 6%, and 15% respectively in 2020[78]. - The rental income for Beijing Yintai Center was HKD 358 million, a decrease of 6% from 2019[79]. - The occupancy rates for Guangzhou Taikoo Hui and Beijing Yintai Center were 95% and 70% respectively as of December 31, 2020[79]. - The company plans to expand the Yintai Center in Beijing, with a total gross floor area of 4.083 million square feet, expected to be completed in phases by the end of 2025 and 2027[69]. Aviation Sector Performance - The company experienced a significant decline in passenger revenue, which dropped to only 2% to 3% of pre-pandemic levels in 2020[32]. - The company received government support of HKD 26.89 billion related to the COVID-19 pandemic[32]. - The company’s operational environment in 2020 was extremely challenging, with a substantial reduction in passenger flights and cargo capacity[32]. - The average age of the fleet was 10.1 years, slightly down from 10.3 years in 2019, indicating a stable fleet management strategy[135]. - The company recorded a significant reduction in flight operations, with aircraft utilization dropping by 63.9% to 4.3 hours per day[135]. - The cargo revenue increased by 16.2% to HKD 24.573 billion, with cargo yield rising by 58.3% to HKD 2.96 per ton kilometer[135]. - The company implemented a capital restructuring plan amounting to HKD 39 billion in August 2020 to ensure operational continuity[137]. - 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]. - The company plans to modernize its fleet and enhance efficiency through the introduction of new aircraft models[142]. - The company has entered into agreements with Airbus and Boeing regarding the delivery schedules of new aircraft, indicating a strategic focus on fleet modernization[142]. Beverage Division Performance - The beverage division reported annual sales of 1.743 billion standard cases in 2020[172]. - The company aims to expand its product portfolio and enhance digitalization across its markets as part of its strategic goals[164]. - Total revenue increased by 2% to HKD 45,657 million, while sales volume decreased by 2% to 1.743 billion cases[177]. - Revenue from the mainland China segment was HKD 22,942 million, a 1% increase from HKD 22,087 million in 2019, while operating profit was HKD 1,041 million, up from HKD 856 million[174]. - The company experienced a decline in sales volume in Hong Kong by 12%, while Taiwan and the US saw revenue and sales volume increases of 9% and 7%, respectively[176]. - The energy drink segment saw a revenue increase of 24% in mainland China, indicating strong demand for premium beverage categories[184]. - The attributable profit for the U.S. business was HKD 797 million, a 45% increase after excluding non-recurring gains from the sale of a sales center in 2019[188]. - The company successfully launched new products and improved its product mix, leading to a 9% increase in soft drink revenue in Hong Kong[188].

Financial Performance - The company reported a loss attributable to shareholders of HKD 7,737 million for the six months ended June 30, 2020, a decrease of 197% compared to a profit of HKD 7,939 million in the same period last year[8]. - Basic loss per share for 'A' shares was HKD (5.15), down 197% from HKD 5.29 in the previous year[8]. - Revenue for the period was HKD 39,056 million, representing a 9% decrease from HKD 42,870 million in the prior year[8]. - Operating loss was HKD (1,670) million, a decline of 115% compared to an operating profit of HKD 10,866 million in the previous year[8]. - The group recorded a profit attributable to shareholders of HKD 534 million for the first half of 2020, a decrease from HKD 535 million in the same period of 2019[57]. - The total profit for the period was HKD 14,962 million, down 8.3% from HKD 16,317 million year-on-year[120]. - The group reported a net loss of HKD 3,951 million from other income/expenses for the six months ended June 30, 2020[140]. Dividends - The company declared an interim dividend of HKD 0.70 per 'A' share, a decrease of 48% from HKD 1.35 in the previous year[8]. - The board declared an interim dividend of HKD 0.70 per 'A' share and HKD 0.14 per 'B' share, reflecting a reduction in dividends due to the challenging business environment[10]. - The company declared dividends totaling HKD 2,478 million during the six months ended June 30, 2020, a decrease of 8.3% compared to HKD 2,703 million in the previous year[123]. Cash Flow and Liquidity - The net cash inflow from operations was HKD 5,176 million, an increase of 18% from HKD 4,368 million in the previous year[8]. - The company’s net cash flow from financing activities showed an increase of HKD 3,830 million during the six months ended June 30, 2020[105]. - The cash and cash equivalents held by the company were HKD 22,432 million as of June 30, 2020, compared to HKD 21,345 million as of December 31, 2019[106]. - The company’s total assets as of June 30, 2020, were HKD 67.832 billion, reflecting changes in currency exchange rates and asset sales[150]. Debt and Liabilities - The net debt was HKD 49,277 million, reflecting a 1% increase from HKD 48,630 million in the previous year[8]. - The total liabilities increased to HKD 71,709 million as of June 30, 2020, from HKD 68,033 million as of December 31, 2019[105]. - The company has 74% of its borrowings arranged at fixed interest rates and 26% at floating rates as of June 30, 2020, compared to 73% and 27% respectively as of December 31, 2019[111]. - The total borrowings for the Cathay Pacific Group reached HKD 55,154 million as of June 30, 2020, up from HKD 41,904 million at the end of 2019[114]. Segment Performance - The aviation segment, specifically Cathay Pacific Group, reported an operating loss of HKD 4,440 million for the period[125]. - The property investment segment generated external revenue of HKD 6,121 million, with an operating profit of HKD 4,317 million, while the hotel segment reported an external revenue of HKD 274 million and an operating loss of HKD 197 million[125]. - The beverage segment in mainland China achieved external revenue of HKD 10,904 million, with an operating profit of HKD 867 million[125]. - The trading and industrial segment reported an operating profit of HKD 1,287 million, with a significant loss of HKD 611 million attributed to other expenses[126]. Impairments and Valuations - The company incurred a significant impairment loss of HKD 5,380 million on property, plant, and equipment for the six months ended June 30, 2020[103]. - The group recognized an impairment loss of HKD 4,361 million on property, plant, and equipment for the six months ended June 30, 2020[140]. - The fair value loss on investment properties for the six months ended June 30, 2020, was HKD 2.601 billion, resulting in a carrying amount of HKD 272.684 billion[152]. Market Outlook - The company anticipates a soft demand for office space in Hong Kong in the second half of 2020 due to economic weakness[14]. - The beverage market in Hong Kong is expected to be negatively impacted by the COVID-19 pandemic in the second half of 2020, leading to increased depreciation and operating costs[76]. - The company plans to continue focusing on strategic expansions and new product developments to enhance market presence and recover from the impacts of the pandemic[134].

Financial Performance - Total revenue for 2019 was HKD 85,652 million, a 1% increase from HKD 84,606 million in 2018[8] - Operating profit decreased by 55% to HKD 13,792 million from HKD 30,888 million in the previous year[8] - Profit attributable to shareholders dropped by 62% to HKD 9,007 million compared to HKD 23,629 million in 2018[8] - Cash generated from operations fell by 30% to HKD 12,817 million from HKD 18,328 million in 2018[8] - Net cash inflow before financing increased by 28% to HKD 22,910 million from HKD 17,919 million in the previous year[8] - Total equity, including non-controlling interests, rose by 1% to HKD 329,494 million from HKD 325,115 million[8] - The company's attributable basic profit reached HKD 17,797 million, representing a 109% increase compared to HKD 8,523 million in the previous year[10] - Basic earnings per share for 'A' shares increased by 109% to HKD 11.85, while 'B' shares rose to HKD 2.37, also a 109% increase[10] - The company reported a profit attributable to shareholders of HKD 11,007 million in 2019, a significant decrease of 53% from HKD 23,437 million in 2018[47] Debt and Equity Management - Net debt decreased by 25% to HKD 46,688 million from HKD 62,667 million in 2018[8] - The net debt to equity ratio improved to 14.2%, down by 5.1 percentage points from 19.3% in the previous year[8] - The net debt-to-capital ratio at the end of 2019 was 14.2%, down from 19.3% at the end of 2018, with cash and undrawn financing amounting to HKD 40 billion[13] - The company maintained a dividend of HKD 3.00 per share, unchanged from the previous year[7] - The company maintained its dividend at the same level as 2018, distributing approximately 48% of basic profit as dividends over the past five years[14] Sector Performance - The company reported stable overall performance in the property sector, with encouraging rental income growth from retail properties in mainland China[11] - The real estate sector was the largest source of profit, contributing HKD 62.69 billion in recurring profit, compared to HKD 61.77 billion in 2018[29] - The aviation sector recorded a profit of HKD 1.55 billion in 2019, down from HKD 1.78 billion in 2018, mainly due to the poor performance of Cathay Pacific[29] - The marine services sector recorded a recurring loss of HKD 1.34 billion in 2019, compared to a loss of HKD 1.12 billion in 2018[29] - The trading and industrial sector's recurring profit was HKD 41 million in 2019, up from HKD 16.4 million in 2018[29] Challenges and Future Outlook - The company anticipates significant challenges in 2020 due to the adverse effects of the COVID-19 pandemic, particularly impacting Cathay Pacific, with expected recurring losses in the first half of 2020[20] - The company is committed to sustainable development, focusing on reducing carbon footprint and responsible water usage among other priorities[18] - The company plans to continue its strategy of maintaining a diversified business portfolio to navigate market challenges effectively[11] - The company expects an increase in office vacancy rates in Hong Kong and mainland China due to rising supply and weak demand, leading to downward pressure on rental prices[118] Property Development and Management - The total floor area of completed properties in Hong Kong, including hotels, is 12.6 million square feet, with an additional 1.2 million square feet under construction[41] - In mainland China, the total area of commercial developments will reach 9.8 million square feet, with 9 million square feet already completed[41] - The company completed the acquisition of low-cost airline Hong Kong Express in July 2019 to support long-term investment plans[31] - The company is actively managing its assets through optimization, redevelopment, and acquisition strategies to enhance profitability[45] - The company plans to continue expanding its property portfolio in both Hong Kong and mainland China[61] Retail and Hospitality Performance - The retail sales in Hong Kong have been adversely affected by social events and economic uncertainty, with a notable impact from the COVID-19 pandemic on aircraft usage and maintenance demand[33] - The hotel segment reported a revenue of HKD 1,296 million in 2019, down from HKD 1,404 million in 2018, a decline of 7.7%[47] - The occupancy rates and revenue of Taikoo Properties' hotels have significantly declined due to the pandemic[32] - The company is providing temporary rental support to retail tenants on a case-by-case basis[119] Aviation Sector Insights - Cathay Pacific Group's revenue for 2019 was HKD 15,901 million, an increase from HKD 14,892 million in 2018, representing a growth of 6.8%[133] - The passenger revenue for Cathay Pacific Group was HKD 72,168 million in 2019, a decline of 1.3% compared to HKD 73,119 million in 2018[135] - The cargo revenue for the group decreased by 15.9% to HKD 23,810 million in 2019 from HKD 28,316 million in 2018[135] - Cathay Pacific expects significant losses in the first half of 2020 due to a sharp decline in travel demand and the impact of the COVID-19 pandemic[150] Beverage Sector Performance - In 2019, the company's revenue reached HKD 43,317 million, an increase of 5% from HKD 41,190 million in 2018[176] - The energy drink category saw significant growth, with revenue increasing by 101% and sales volume by 99%[184] - The beverage market in Hong Kong is anticipated to face challenges in 2020, with rising operating costs impacting profitability[197] - The company plans to expand its market presence and enhance product offerings in the coming years[178]

Financial Performance - The company's recurring basic profit increased to HKD 4.226 billion, a growth of 40% compared to the previous year[6]. - Total revenue for the first half of 2019 was HKD 42.870 billion, a slight increase of 1% from HKD 42.265 billion in the same period last year[5]. - The operating profit decreased to HKD 10.866 billion, down 42% from HKD 18.695 billion year-on-year[5]. - The net cash inflow before financing was HKD 15.260 billion, representing an increase of 89% compared to HKD 8.075 billion in the previous year[5]. - The attributable consolidated profit for the first half of 2019 is HKD 7.93 billion, a decrease of 41% compared to the same period in 2018, primarily due to withholding tax on dividends received from the US[9]. - The company’s profit attributable to shareholders for the six months ended June 30, 2019, was HKD 7,939 million, a decrease from HKD 13,501 million in 2018[88]. - The basic profit attributable to shareholders, excluding non-recurring items, was HKD 15,846 million for the first half of 2019, significantly up from HKD 1,265 million in the same period of 2018[89]. Debt and Cash Flow - The net debt decreased by 28% to HKD 48.630 billion from HKD 67.272 billion year-on-year[5]. - The capital net debt ratio improved to 14.7%, down from 20.9% in the previous year, marking the lowest level since 2007[7]. - As of June 30, 2019, the net debt was HKD 48.6 billion, a decrease of 22% compared to the end of 2018, with a net debt to equity ratio of 14.7%, down 4.6 percentage points from the end of 2018[11]. - The company reported a net cash increase of HKD 8,863 million for the first half of 2019, up from HKD 4,259 million in the same period of 2018[91]. - Total borrowings and bonds as of June 30, 2019, were HKD 69,597 million, down from HKD 71,779 million at the end of 2018[92]. - The company paid dividends totaling HKD 3,589 million during the first half of 2019, compared to HKD 2,450 million in the same period of 2018[91]. Investment and Acquisitions - The company completed the acquisition of low-cost airline Hong Kong Express in July 2019, supporting its strategic development[6]. - The group is investing HKD 15 billion to redevelop Taikoo Place in Hong Kong, with the second phase expected to be completed in 2021 or 2022[9]. - The company completed the sale of its 100% interest in two office buildings in Hong Kong, generating significant profit from the transaction[22]. - The company announced the launch of its first residential project "EDEN" in Singapore, offering 20 residential units with a total floor area of approximately 77,000 square feet, expected to be completed in Q4 2019[22]. Sector Performance - The aviation sector recorded an attributable profit of HKD 1.347 billion in the first half of 2019, a significant recovery from a loss of HKD 263 million in the same period of 2018[9]. - The real estate sector contributed HKD 33.19 billion to the recurring basic profit in the first half of 2019, compared to HKD 30.58 billion in the same period of 2018[9]. - The cargo business performance was weak, with both cargo volume and yield declining, partly due to US-China trade tensions[9]. - The hotel business recorded a profit of HKD 706 million in the first half of 2019, compared to a loss in the same period of 2018, indicating a recovery in performance[22]. Market Outlook - The group expects varying prospects for different businesses in the second half of 2019, with an increase in workload for Hong Kong Aircraft Engineering Company (HAECO) Americas and stable workload for Xiamen Taikoo[11]. - The beverage market in mainland China is projected to continue growing in the second half of 2019, with revenue growth expected to outpace sales volume[11]. - The group anticipates that the overall performance of the trading and industrial sector in the second half of 2019 will be better than the first half[11]. - The company expects stable retail sales growth in Beijing and Guangzhou, with moderate growth in Shanghai and satisfactory growth in Chengdu for the second half of 2019[28]. Property and Rental Income - The total rental income increased by 6% to HKD 6.34 billion in the first half of 2019, up from HKD 5.99 billion in the first half of 2018[22]. - Total rental income from retail properties in Hong Kong for the first half of 2019 was HKD 1.404 billion, a 3% increase year-on-year[26]. - The total rental income from Hong Kong office portfolio for the first half of 2019 was HKD 3.047 billion, a 6% increase compared to the same period in 2018[25]. - The investment property portfolio was valued at HKD 275.64 billion as of June 30, 2019, up from HKD 271.25 billion at the end of 2018[31]. Challenges and Risks - The hotel sector in Hong Kong has been affected by protests, leading to a potential decline in occupancy rates if the situation persists[11]. - Retail sales at Pacific Place shopping mall decreased by 4% due to reduced spending from visitors, particularly from mainland China[26]. - The overall performance indicates a challenging market environment, impacting various segments differently[116]. - Future outlook remains cautious with ongoing market uncertainties and potential for strategic adjustments[116].

Financial Performance - Total revenue for 2018 was HKD 84,606 million, representing a 5% increase from HKD 80,289 million in 2017[8] - Operating profit decreased by 14% to HKD 30,888 million from HKD 35,864 million in the previous year[8] - Profit attributable to shareholders was HKD 23,629 million, down 9% from HKD 26,070 million in 2017[8] - Cash generated from operations was HKD 18,328 million, a decrease of 7% compared to HKD 19,605 million in 2017[8] - The total equity, including non-controlling interests, increased by 6% to HKD 325,115 million from HKD 306,094 million[8] - Net debt decreased by 14% to HKD 62,667 million from HKD 72,514 million in the previous year[8] - The net debt to equity ratio improved to 19.3%, down 4.4 percentage points from 23.7%[8] - Earnings per share for 'A' shares increased by 43% to HKD 3.00 from HKD 2.10 in 2017[7] - Return on equity for 2018 was 9.0%, down from 10.9% in 2017, a decline of 1.9 percentage points[7] - The company reported a basic profit of HKD 10,160 million for 2018, compared to HKD 7,809 million in 2017, marking an increase of approximately 30%[48] - The net profit attributable to the company was HKD 23,437 million in 2018, down from HKD 27,731 million in 2017, a decrease of about 15.5%[47] Dividends and Shareholder Returns - The total dividend declared for the year is HKD 3.00 per 'A' share and HKD 0.60 per 'B' share, representing a 43% increase from the previous year[14] - The company aims to achieve a dividend payout ratio of 53%, down from 67% in the previous year, as part of its strategy for sustainable growth[14] Business Segments and Operations - The company operates a diversified business across five sectors: property, aviation, beverages, marine services, and trading and industrial[5] - The real estate sector was the largest source of profit for the group, contributing HKD 61.77 billion in recurring basic profit, compared to HKD 63.86 billion in 2017[28] - The aviation sector turned a profit in 2018, reflecting improved operating performance from Cathay Pacific and Hong Kong Aircraft Engineering Company, which reported a recurring profit of HKD 7.28 billion[28] - Swire Beverages expanded its product and packaging portfolio and invested in production assets and logistics infrastructure in 2018[30] Capital Expenditures and Investments - Swire Properties is investing HKD 15 billion to redevelop Taikoo Place in Hong Kong, with the first phase completed in 2018 and the second phase expected to be completed in 2021 or 2022[29] - The group’s capital allocation in 2018 included HKD 18.3 billion from operating activities and HKD 14 billion from business disposals, with total capital investments of HKD 14.6 billion[30] - The company plans to expand its retail properties in mainland China, particularly in Beijing and Guangzhou, where demand remains strong[52] Market Conditions and Outlook - The company remains cautiously optimistic about maintaining good momentum in most businesses in 2019 despite macroeconomic uncertainties[21] - The real estate sector in Hong Kong is expected to maintain stable rental rates due to high occupancy rates, while retail sales are projected to remain steady[31] - Cathay Pacific anticipates a challenging business environment in 2019, with a strong US dollar and geopolitical tensions negatively impacting cargo demand[31] - The beverage sector in mainland China, Hong Kong, and Taiwan is expected to see revenue growth in 2019, outpacing volume growth, while the US beverage market is projected to show moderate growth[31] Sustainability and Corporate Responsibility - The company reported a 55% increase in water consumption to 17.1 million cubic meters, indicating a focus on sustainability[11] - The company is committed to sustainability, focusing on reducing water usage and waste generation[170] - The company is establishing a joint venture to set up Hong Kong's first dedicated PET and HDPE plastic recycling facility[190] Challenges and Risks - The business environment for 2019 is expected to remain challenging, with a strong US dollar and geopolitical tensions negatively impacting cargo and passenger demand[153] - Operational constraints and increased costs are anticipated due to competitive pressures, particularly in long-haul economy cabins[153] Performance of Subsidiaries - Cathay Pacific Group reported a net profit of HKD 6 billion in 2018, with a return on capital employed of 8%[127] - The group reported a revenue of HKD 14,892 million for 2018, an increase from HKD 14,546 million in 2017, representing a growth of 2.4%[133] - The group’s revenue from Hong Kong Aircraft Engineering Company (HAECO) was HKD 4,253 million in 2018, an increase from HKD 4,041 million in 2017[155] Future Plans and Strategies - The group aims to strengthen Hong Kong's position as a hub for aviation services, including passenger and cargo operations[132] - The group plans to maintain high service quality in passenger, cargo, and aircraft engineering services[132] - The airline will expand its route network to more destinations not currently served from Hong Kong and increase frequencies on popular routes[153]