Financial Performance - The company's return on equity decreased to 1.6% in 2024 from 11.0% in 2023, a decline of 9.4 percentage points[14]. - The total profit attributable to shareholders dropped by 85% to HKD 4,321 million in 2024 from HKD 28,853 million in 2023[14]. - Revenue fell by 14% to HKD 81,969 million in 2024 compared to HKD 94,823 million in 2023[14]. - The basic earnings per share for 'A' shares decreased by 85% to HKD 3.06 in 2024 from HKD 19.96 in 2023[14]. - The consolidated profit attributable to shareholders for 2024 was HKD 4.32 billion, down from HKD 28.85 billion in 2023[16]. - The basic profit attributable to shareholders, excluding losses from fair value changes of investment properties, was HKD 10.47 billion in 2024, compared to HKD 36.17 billion in 2023[16]. - The recurring basic profit, excluding fair value changes and significant non-recurring items, was HKD 9.28 billion in 2024, down from HKD 10.44 billion in 2023[16]. - The company reported a total operating profit of HKD 1,716 million for 2024, significantly down from HKD 5,141 million in 2023, a decline of 66.66%[76]. - The basic profit attributable to shareholders is HKD 6,713 million for 2024, compared to HKD 11,531 million in 2023, a decrease of 41.56%[77]. - The company reported a fair value loss on investment properties of HKD 6,197 million in 2024, compared to HKD 4,423 million in 2023[79]. - The recurring basic profit for 2024, excluding asset sales, was HKD 5.727 billion, down from HKD 5.942 billion in 2023, reflecting a decline in rental income from Hong Kong office properties[100]. - The company reported a total profit including non-recurring items of HKD 2,039 million, down 91.9% from HKD 25,097 million in 2023[199]. Debt and Liquidity - The net debt increased by 28% to HKD 70,563 million in 2024 from HKD 55,136 million in 2023[14]. - The group's available liquid funds at the end of 2024 amounted to HKD 43.1 billion, with a net debt-to-capital ratio of 22.1%[30]. - The company reported a net cash generated from operating activities, indicating a focus on maintaining liquidity[67]. Sustainability and Environmental Impact - The company reported a 11% reduction in greenhouse gas emissions to 645 thousand tons of CO2 equivalent in 2024 from 723 thousand tons in 2023[15]. - The energy consumption decreased by 11% to 5.4 million gigajoules in 2024 from 6.1 million gigajoules in 2023[15]. - Swire Coca-Cola utilized 42% renewable energy in its major operations by the end of 2024, with all eight bottling plants in mainland China using 100% renewable energy[32]. - The group continues to focus on sustainable development through its SwireTHRIVE strategy, achieving recognition in various sustainability indices[31]. - Swire Coca-Cola's sustainability goals for 2030 are integrated into its business plans, ensuring that all decision-making processes consider sustainable development[190]. Business Expansion and Investments - The company is focusing on expanding its business in healthcare, particularly in major urban areas in mainland China and Southeast Asia[13]. - The company aims to maintain a stable dividend payout while pursuing long-term growth strategies in the Greater China and Southeast Asia regions[7]. - Swire Properties has committed approximately 67% of its HKD 100 billion investment plan, with HKD 50 billion allocated for major retail-led projects in mainland China[19]. - The company plans to continue its HKD 100 billion investment program, focusing on core markets and seeking business expansion opportunities, particularly in the Greater Bay Area[33]. - The company is actively pursuing new strategies, including enhancing community engagement and sustainability measures within its office properties[107]. - Swire Properties announced a HKD 100 billion investment plan for property development projects in Hong Kong and mainland China over the next decade, with HKD 30 billion allocated for Hong Kong, HKD 50 billion for mainland China, and HKD 20 billion for residential sales projects[103]. Market Performance and Outlook - The Hong Kong office market is expected to remain weak, but the company's properties in Taikoo Place are well-positioned for recovery[33]. - Retail sales growth in mainland China is anticipated to accelerate due to improved domestic demand and recent economic stimulus measures[33]. - The company expects revenue growth from its Coca-Cola business in mainland China, driven by an excellent product and packaging mix[33]. - The Hong Kong office market remains challenging, with weak demand and high vacancy rates putting downward pressure on rental prices[101]. - Retail sales in mainland China showed signs of stabilization in Q4 2024, following government stimulus measures announced in September[83]. - The hotel business outlook in Hong Kong is cautiously optimistic, depending on the recovery of international and business travelers[170]. Acquisitions and Joint Ventures - Swire Coca-Cola agreed to acquire over 55.6% of ThaiNamthip Corporation for approximately THB 42.61 billion (about HKD 9.47 billion) in two phases, completing the first phase in February 2024[21]. - The group completed the acquisition of a controlling stake in Dada Healthcare in April 2024, marking its first major investment in the healthcare sector[28]. - Swire Coca-Cola acquired 39% of the issued share capital of ThaiNamthip Corporation Public Company Limited (TNTC) and increased its stake to approximately 55.7% by September 30, 2024, making TNTC a non-wholly owned subsidiary[176]. - The company completed acquisitions of exclusive operations in Cambodia and Vietnam on November 25, 2022, and January 1, 2023, respectively[198]. - The acquisition of exclusive operations in Thailand and Laos is expected to be completed by September 30, 2024[198]. Operational Performance - The overall performance of Swire Coca-Cola remained robust in 2024, reflecting the continued recovery in the aviation industry and the challenges faced by Swire Properties[23]. - Swire Coca-Cola recorded a recurring profit of HKD 1.388 billion in 2024, down from HKD 2.394 billion in 2023, with a 20% increase in recurring profit when excluding the impact of the sale of US Swire Coca-Cola[25]. - Cathay Pacific Group achieved a profit of HKD 9.888 billion in 2024, including special income of HKD 751 million, compared to HKD 9.789 billion in 2023, driven by strong travel demand and cargo performance[27]. - The beverage division serves 941 million consumers across various regions, including mainland China, Hong Kong, and Southeast Asia[173]. - Swire Coca-Cola's operational regions include 42 bottling plants, with a total annual sales volume of 2.132 billion standard cases[197]. Real Estate and Property Development - The company’s total floor area for investment properties and hotels is approximately 35.2 million square feet, with 24.4 million square feet completed[61]. - The company holds a 20% stake in several hotels in Hong Kong and has plans to expand its hotel management business into Japan and various cities in mainland China[62]. - The total investment property area is projected to be 35.2 million square feet by December 31, 2024, an increase from 34.4 million square feet in 2023[74]. - The rental income from office properties is HKD 5,488 million, down from HKD 5,835 million in 2023, a decrease of 5.95%[76]. - The rental income from Hong Kong office properties for 2024 was HKD 5.109 billion, a decrease of 7% compared to 2023, with a rental income decline of 4% after excluding losses from the sale of nine floors of the Island East Centre[107]. - The occupancy rate of Swire Properties' office portfolio was 89% as of December 31, 2024, with the newly launched properties achieving a 53% occupancy rate[107]. - The residential property portfolio's occupancy rate was 76% as of December 31, 2024, with ongoing developments including the residential project in Lujiazui, Shanghai, where 49 out of 50 units have been pre-sold[106]. - The company is expanding its retail presence in first-tier cities in mainland China, planning to double the total floor area[104]. - The company is committed to developing high-quality residential properties as part of its long-term growth strategy[73].

证券时报•数据宝统计，太古股份公司B在港交所公告显示，3月19日以每股10.800港元至10.880港元的 价格回购29.00万股，回购金额达314.61万港元。 （数据宝） 太古股份公司B回购明细 该股当日收盘价10.880港元，上涨0.37%，全天成交额986.10万港元。 ...

Financial Performance - The company's equity return decreased to 1.6% in 2024 from 11.0% in 2023, a decline of 9.4 percentage points [4]. - The basic profit attributable to shareholders dropped by 85% to HKD 4,321 million in 2024 from HKD 28,853 million in 2023 [4]. - Revenue fell by 14% to HKD 81,969 million in 2024 compared to HKD 94,823 million in 2023 [4]. - The net debt increased by 28% to HKD 70,563 million in 2024 from HKD 55,136 million in 2023 [4]. - The consolidated profit attributable to shareholders for 2024 was HKD 4.32 billion, down from HKD 28.85 billion in 2023 [15]. - The basic profit attributable to shareholders, excluding losses from fair value changes of investment properties, was HKD 10.47 billion in 2024, compared to HKD 36.17 billion in 2023 [15]. - The recurring basic profit for 2024 was HKD 9.28 billion, a decrease from HKD 10.44 billion in 2023 [15]. - The group reported a loss attributable to shareholders of HKD 751 million, compared to a profit of HKD 2,599 million in 2023 [49]. - Basic profit attributable to shareholders was HKD 6,713 million, down 41.5% from HKD 11,531 million in 2023 [49]. - The hotel segment reported an operating loss of HKD 154 million, compared to a loss of HKD 103 million in 2023 [46]. Investment and Expansion Plans - The company plans to continue investing in the healthcare sector, particularly in major urban areas in mainland China and Southeast Asia [12]. - Swire Properties has committed approximately 67% of its HKD 100 billion investment plan, with HKD 50 billion allocated for major retail-led projects in mainland China [17]. - The group announced a new investment plan exceeding HKD 100 billion, including the acquisition of over 100 new generation aircraft [21]. - Swire Properties plans to continue its HKD 100 billion investment program, focusing on core markets and expanding business opportunities, particularly in the Greater Bay Area [34]. - The company is actively pursuing a HKD 1 billion investment plan over the next decade, focusing on property development projects in Hong Kong and mainland China [61]. - The company plans to acquire the remaining 12.07% interest in Bal Harbour Shops in January 2025, increasing its ownership in the Brickell City Centre shopping center to 62.93% [90]. Operational Performance - The operating cash flow decreased by 13% to HKD 12,580 million in 2024 from HKD 14,479 million in 2023 [4]. - The operating profit for property investment was HKD 8,242 million, slightly down from HKD 8,253 million in 2023 [46]. - The hotel management segment includes ownership and management of several hotels in Hong Kong and mainland China, with plans to expand into Tokyo and other cities [39]. - The company recorded a depreciation before interest and tax of HKD 170 million for its hotels managed in 2024, down from HKD 880 million in 2023, indicating challenges in the hospitality sector [96]. - The company anticipates stable demand for base maintenance services in 2025, with continued growth in field maintenance workload as Hong Kong's air traffic is expected to recover to pre-pandemic levels [193]. Market Conditions and Challenges - The Hong Kong office market is anticipated to remain weak, but Swire Properties' office portfolio in Taikoo Place is well-positioned for recovery [34]. - The office market in Hong Kong remains weak due to soft demand and increased supply, impacting rental rates negatively [51]. - The hotel business in Hong Kong is recovering slower than expected, while the performance of hotels in mainland China remains stable [60]. - The company anticipates sales growth in Taiwan and Cambodia, despite challenges in the Hong Kong business environment [34]. - The retail sales in Hong Kong decreased in 2024, while the retail sales and rental income in the US increased compared to 2023, driven by tenant mix optimization and higher store opening rates [60]. Sustainability and Corporate Responsibility - The company aims to achieve net-zero carbon emissions by 2050 as part of its long-term strategy [159]. - Swire Coca-Cola utilized 42% renewable energy in its major operations by the end of 2024, with all eight bottling plants in mainland China using 100% renewable energy [33]. - The group is preparing for regulatory requirements to enhance internal monitoring of sustainability-related processes and data [33]. - The company has set sustainability goals for 2030, integrating them into its business planning [126]. - The company plans to enhance its brand portfolio and improve operational efficiency to drive long-term sustainable growth [122]. Sector-Specific Insights - The beverage segment reported revenues of HKD 36,609 million, a decrease of 29.3% from HKD 51,844 million in 2023 [127]. - The operating business revenue from Mainland China increased to HKD 25.234 billion in 2024, up 3% from HKD 24.725 billion in 2023 [128]. - The total number of beverage brands produced and distributed by the company reached 41, covering a population of 909.9 million in its operating regions [118]. - The company expects continued contributions from newly acquired operations in Thailand and Laos, despite the adverse impact from the sale of the US operations [133]. - The company anticipates revenue growth in mainland China, despite rising raw material and operating costs [150]. Aviation Sector Performance - Cathay Pacific Group reported a revenue of HKD 21,662 million for 2024, up 21.0% from HKD 17,787 million in 2023 [160]. - Passenger revenue increased to HKD 62,595 million, representing an 11.9% growth compared to HKD 55,951 million in 2023 [162]. - Cargo revenue reached HKD 24,000 million, reflecting an 8.3% increase from HKD 22,162 million in 2023 [162]. - The total number of passengers carried by Cathay Pacific in 2024 was 22.8 million, averaging 62,500 passengers per day, a 27% increase from 2023 [165]. - The group plans to receive 12 new aircraft in 2024 and has the option to purchase an additional 82 aircraft [174].

Financial Performance - The company reported a profit attributable to shareholders of HKD 3,914 million for the six months ended June 30, 2024, a decrease of 7% compared to HKD 4,221 million in the same period of 2023[9]. - Revenue for the same period was HKD 39,563 million, down 23% from HKD 51,544 million year-on-year[9]. - The operating profit was HKD 4,945 million, reflecting a 3% decline from HKD 5,079 million in the previous year[9]. - In the first half of 2024, the attributable consolidated profit for shareholders was HKD 39.14 billion, down from HKD 42.21 billion in the same period of 2023, representing a decrease of approximately 6.5%[16]. - The recurring basic profit, excluding changes in investment property values, was HKD 55.76 billion, compared to HKD 55.94 billion in the first half of 2023, showing a slight decrease of about 0.3%[16]. - The attributable profit for the first half of 2024 was HKD 1,795 million, a decrease from HKD 2,222 million in the same period of 2023[40]. - The total attributable profit, excluding non-recurring items, for the first half of 2024 was HKD 878 million, compared to HKD 714 million in the same period of 2023[103]. - The attributable profit for the first half of 2024 from mainland China was HKD 543 million, a decrease of 12% compared to the same period in 2023, with local currency profit down by 7%[118]. Debt and Financial Position - The company’s net debt decreased by 5% to HKD 63,479 million from HKD 66,915 million in 2023[9]. - The net debt to equity ratio (excluding lease liabilities) improved to 19.8%, down from 21.4% in the previous year[9]. - The group has a robust financial position with available liquid funds of HKD 46.8 billion as of June 30, 2024, and a capital net debt ratio of 19.8%[26]. - The total borrowings and debt securities as of June 30, 2024, amounted to HKD 109.72 billion, with HKD 30.46 billion (27%) remaining undrawn[200]. - The company reported a net cash increase of HKD 3,741 million for the six months ended June 30, 2024, compared to HKD 633 million in the same period of 2023[198]. Investment and Development Plans - The company is committed to a ten-year investment plan of HKD 100 billion, with 65% of the funds allocated to property development projects in core markets as of August 2, 2024[13]. - The company plans to continue investing in core markets and is actively seeking opportunities in the Greater Bay Area, having signed a memorandum of understanding with the Shenzhen government[29]. - The company has committed approximately HKD 650 billion for planned investments, with HKD 110 billion allocated to Hong Kong and HKD 440 billion to mainland China[49]. - The investment plan includes HKD 300 billion for Hong Kong, HKD 500 billion for mainland China, and HKD 200 billion for residential sales projects[49]. - The company plans to increase the total floor area of retail-led developments in mainland China by 100%[50]. Sector Performance - The beverage sector showed stable performance, while the real estate sector performed well despite increasing adverse factors[12]. - The aviation sector significantly contributed to the company's performance, with Cathay Pacific achieving a profit of HKD 36.13 billion in the first half of 2024, down from HKD 42.68 billion in the same period of 2023, which included a special income of HKD 21 billion[20]. - Swire Properties reported a recurring basic profit of HKD 28.98 billion in the first half of 2024, a decrease of 9% from HKD 31.88 billion in the same period of 2023, attributed to increased financial expenses and reduced rental income from office properties[17]. - Swire Coca-Cola recorded a recurring profit of HKD 8.78 billion in the first half of 2024, down from HKD 16.27 billion in the same period of 2023, primarily due to the sale of Swire Coca-Cola USA[19]. Shareholder Returns - The company plans to enhance shareholder returns through regular dividends and a share buyback program set to complete in May 2025[13]. - The company announced an interim dividend of HKD 1.25 per 'A' share and HKD 0.25 per 'B' share, representing a 4% increase compared to the first interim dividend in 2023[24]. Market Outlook - The company remains confident in the business outlook across core markets despite market volatility and global uncertainties[12]. - The Hong Kong office market is expected to remain weak in the second half of 2024 due to soft market demand and oversupply[64]. - The retail market is expected to stabilize in the second half of 2024, with luxury brand retailers showing strong demand in Guangzhou and Chengdu[78]. - The overall sentiment in the office rental market remains negative due to economic uncertainty, with expectations of rental declines in major cities like Beijing and Shanghai[78]. Operational Highlights - Cathay Pacific's passenger flights reached 80% of pre-pandemic levels in the second quarter of 2024, reflecting a strong recovery in the aviation sector[20]. - The number of passengers carried increased by 36.4% to 10.66 million in the first half of 2024, compared to 7.816 million in the same period of 2023[139]. - The company completed 158 engine overhauls in the first half of 2024, up from 141 in the same period of 2023, reflecting strong demand for engine repair services[164]. - The company’s engine business recorded a profit of HKD 345 million in the first half of 2024, a 31% increase compared to the same period of 2023[163]. Challenges and Risks - The hotel business in Hong Kong is recovering slower than expected, while performance in mainland China remains relatively stable[48]. - The company anticipates continued challenges in mainland China due to sluggish local consumption, but stable raw material costs and effective cost management may alleviate profit pressures[127]. - Despite the Hong Kong government's removal of stamp duty measures in February 2024, the residential property market remains soft due to economic uncertainty and high interest rates[99].

Financial Performance - For the six months ended June 30, 2024, the company's profit attributable to shareholders was HKD 3,914 million, a decrease of 7% compared to HKD 4,221 million in the same period of 2023[10] - The company's revenue for the same period was HKD 39,563 million, reflecting a decline of 23% from HKD 51,544 million in 2023[10] - The basic earnings per share for 'A' shares was HKD 3.90, an increase of 1% from HKD 3.86 in the previous year[10] - Swire Group reported a consolidated profit attributable to shareholders of HKD 39.14 billion for the first half of 2024, down from HKD 42.21 billion in the same period of 2023[18] - Swire Properties' recurring underlying profit for the first half of 2024 was HKD 28.998 billion, a decrease of 9% compared to HKD 31.888 billion in the first half of 2023[19] - Swire Coca-Cola recorded a recurring profit of HKD 8.778 billion in the first half of 2024, down from HKD 16.627 billion in the same period of 2023[20] - Cathay Pacific's profit for the first half of 2024 was HKD 36.131 billion, compared to HKD 42.668 billion in the same period of 2023[22] - The attributable profit excluding non-recurring items for Swire Properties was HKD 878 million for the six months ended June 30, 2024[98] - The attributable profit for Swire Coca-Cola in the first half of 2024 was HKD 878 million, a decrease of 38% compared to HKD 1.423 billion in the same period of 2023[105] Debt and Financial Ratios - The company reported a net debt of HKD 63,479 million, a decrease of 5% from HKD 66,915 million in 2023[10] - The capital net debt ratio (excluding lease liabilities) improved to 19.8%, down from 21.4% in the previous year[10] - As of June 30, 2024, the company has available liquid funds of HKD 46.8 billion and a net debt-to-capital ratio of 19.8%[26] - The total borrowings and debt securities as of June 30, 2024, amounted to HKD 109,723 million, with HKD 30,046 million remaining undrawn[195] - The weighted average debt maturity was 2.8 years as of June 30, 2024, compared to 3.2 years as of December 31, 2023[197] - The weighted average cost of debt was 4.0% as of June 30, 2024, consistent with the rate as of December 31, 2023[197] Sector Performance - The aviation sector continued to be a major driver of basic earnings, benefiting from strong demand for travel and cargo services[12] - The beverage sector showed stable performance, while the real estate sector performed well despite increasing adverse factors[12] - The hotel business in Hong Kong showed slower recovery than expected, while the performance of hotels in mainland China remained relatively stable[44] - The rental income from office properties decreased, partly due to the loss of revenue from the sale of the office floors in the Island East Centre in December 2023[44] - The retail property portfolio in Hong Kong performed weakly, prompting the company to implement optimization measures and marketing activities to attract local customers and tourists[44] Strategic Investments and Plans - The company is focused on strategic and long-term investment plans in core markets including Hong Kong, mainland China, and Southeast Asia[13] - Swire Properties has committed 65% of its HKD 100 billion investment plan in core market property development projects as of August 2, 2024[14] - The company plans to enhance shareholder returns through regular dividends and a share buyback program to be completed by May 2025[13] - The company plans to continue investing in core markets, with a focus on opportunities in the Greater Bay Area, having signed a memorandum of understanding with the Shenzhen government in June 2024[28] - Swire Properties announced a HKD 100 billion investment plan over the next decade, allocating HKD 30 billion for Hong Kong, HKD 50 billion for mainland China, and HKD 20 billion for residential projects including Southeast Asia[45] Market Outlook - The outlook for the next six months remains cautious due to market volatility, economic slowdown, and global uncertainties, but the company maintains confidence in its core market prospects[12] - The company anticipates continued challenges in Hong Kong's retail market due to changing consumer patterns and outbound travel trends, despite efforts to optimize tenant mix and enhance marketing activities[57] - The company expects stable demand for base maintenance services in the second half of 2024, with continued recovery in line maintenance workload[163] Operational Highlights - Cathay Pacific's passenger flights reached 80% of pre-pandemic levels in Q2 2024, marking a significant recovery milestone[17] - The total revenue for the first half of 2024 reached HKD 10,445 million, an increase of 23.3% compared to HKD 8,464 million in the same period of 2023[149] - The group plans to invest significantly in fleet, cabin products, lounges, digital upgrades, and sustainability initiatives to enhance its competitive position as an international aviation hub[144] - The company is actively seeking opportunities to sell assets in the United States as part of its capital recycling strategy[75] Healthcare and Other Operations - In the first half of 2024, the group's attributable loss from healthcare operations was HKD 132 million, compared to a loss of HKD 80 million in the same period of 2023[169] - The group has invested HKD 3.1 billion in the healthcare industry, including investments in mainland China and Indonesia, marking its first entry into the Southeast Asian healthcare market[170] - For the first half of 2024, Swire's attributable profit from trading and industrial operations was HKD 152 million, down from HKD 185 million in the first half of 2023[175] Retail Performance - The rental income from retail properties in Hong Kong totaled HKD 1.198 billion, a decrease of 3% compared to the same period in 2023[51] - Retail sales at Taikoo Place, Cityplaza, and East Point City fell by 13%, 4%, and 3% respectively in the first half of 2024, with overall retail sales in Hong Kong declining by 7%[51] - The overall demand for retail space is expected to stabilize in the second half of 2024, with luxury brand retailers showing strong demand in Guangzhou and Chengdu[71]

Business Operations - Swire Properties operates over 2,200 retail outlets in its shopping malls, employing approximately 70,000 people in its office buildings in Hong Kong[6]. - The beverage division distributes Coca-Cola products to a population of 847 million in Greater China and Southeast Asia, and provides management services to Swire Coca-Cola in the U.S., which serves a population of 31 million[6]. - 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]. - Swire Group employs over 32,000 staff in Hong Kong and more than 35,000 in mainland China, totaling over 78,000 employees globally[6]. 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 687% to HKD 5.01[7]. - Revenue for 2023 was HKD 94,823 million, reflecting a 3% increase from HKD 91,693 million in 2022[7]. - Operating profit rose by 150% to HKD 30,621 million, with a significant increase 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]. Investment Strategy - The company plans to invest nearly 60% of its HKD 100 billion commitment in core market projects by March 2024[10]. - The company completed the sale of its US Coca-Cola business for HKD 22,900 million, contributing to a record basic profit of HKD 36,200 million in 2023[10]. - The company is expanding its operations in Southeast Asia, with a conditional agreement to acquire over 50% of ThaiNamthip Corporation Ltd. for approximately HKD 9.47 billion[10]. - The company plans to expand its property portfolio, with ongoing developments in Hong Kong and mainland China, including significant projects in Sanya and Xi'an[35]. Sustainability and Governance - The company emphasizes long-term growth and sustainable development, focusing on core sectors in Greater China and Southeast Asia, including real estate, beverages, and aviation[3]. - The company is committed to high standards of corporate governance and maintaining the Swire brand reputation[3]. - The company has implemented internal carbon pricing across its operations, aiming for sustainable development goals[16]. - The company plans to integrate sustainability goals into its business strategy by 2030, empowering employees to contribute to these objectives[91]. Aviation Sector Performance - Cathay Pacific recorded a profit of HKD 9.789 billion in 2023, a significant turnaround from a loss of HKD 6.623 billion in 2022[14]. - Cathay Group's passenger operations served approximately 80 destinations, carrying 18 million passengers in 2023, an increase of over 500% compared to 2022[12]. - Passenger revenue surged by 308.8% to HKD 55,951 million in 2023, compared to HKD 13,686 million in 2022[134]. - The group’s total revenue increased to HKD 17,787 million in 2023, up from HKD 13,828 million in 2022, representing a growth of approximately 28.3%[131]. Real Estate Development - The total floor area attributable to Swire Properties is approximately 34.4 million square feet, with 24.4 million square feet of completed investment properties and hotels, and 10 million square feet under development or held for future development[31]. - Swire Properties' investment properties and hotel portfolio in Hong Kong comprises about 14.2 million square feet, including Grade A office buildings, retail properties, hotels, serviced apartments, and other high-end residential properties[31]. - The company aims to maintain long-term shareholder value growth by focusing on the development of high-end and quality residential properties[34]. - The company plans to redevelop two sites in Quarry Bay, with a total floor area of approximately 779,000 sq ft for office and commercial use[57]. Beverage Sector Performance - The company’s annual revenue for 2023 reached HKD 51.8 billion, excluding the performance of the US Swire Coca-Cola post-sale[92]. - The total annual sales volume was 2.043 billion standard cases, with 1.394 billion cases sold in mainland China[93]. - Swire Coca-Cola produced and distributed 39 beverage brands by the end of 2023, covering a population of 847 million in its operating regions[90]. - The sales revenue from the beverage segment was HKD 2,394 million, slightly up from HKD 2,392 million in 2022[171]. Challenges and Future Outlook - The company anticipates challenges in mainland China due to sluggish domestic consumption and rising raw material costs[115]. - The residential property market in Hong Kong remains soft due to economic uncertainty and high interest rates, but long-term demand is expected to remain stable[85]. - The company expects 2024 to be a year of stable and sustainable growth, continuing to focus on delivering greater value to shareholders[17]. - The group plans to address inflationary pressures through cost efficiency measures and price adjustments in response to labor supply constraints and global supply chain issues[160].

Financial Performance - The company's equity return increased to 11.0% in 2023, up by 9.4 percentage points from 1.6% in 2022[4] - The basic profit attributable to shareholders rose to HKD 36,177 million, a 662% increase from HKD 4,748 million in 2022[4] - The revenue for 2023 was HKD 94,823 million, reflecting a 3% growth compared to HKD 91,693 million in 2022[4] - The operating profit surged to HKD 30,621 million, marking a 150% increase from HKD 12,241 million in the previous year[4] - The group’s net profit attributable to shareholders was HKD 28.85 billion, compared to HKD 41.19 billion in 2022, reflecting a decrease due to non-recurring items[20] - The group recorded a record basic profit of HKD 36.2 billion for the year 2023, driven by significant non-recurring items, including HKD 22.9 billion from the sale of the US Swire Coca-Cola business[14] - The group announced a special dividend of HKD 8.120 per 'A' share and HKD 1.624 per 'B' share following the sale of Swire Coca-Cola in 2023[28] - The group’s recurring basic profit, excluding investment property value changes, was HKD 10.44 billion in 2023, compared to HKD 3.8 billion in 2022, indicating a significant recovery[20] Dividends and Shareholder Returns - The company declared an 'A' share dividend of HKD 11.32, a significant increase of 277% from HKD 3.00 in 2022[4] - The group announced a new share buyback plan of HKD 6 billion in December 2023 to enhance shareholder returns[16] - The group’s gradual dividend policy resulted in a 7% increase in total dividends for 2023 compared to 2022[28] Employee and Operational Insights - The company employed over 32,000 staff in Hong Kong and more than 35,000 in mainland China, totaling over 78,000 employees globally[12] - The airline group operated a fleet of 230 aircraft and provided services to 92 destinations globally as of December 31, 2023[12] Investment and Growth Strategies - The company is actively seeking investment opportunities in the private healthcare sector, particularly in major urban areas in mainland China and Southeast Asia[12] - The group is optimistic about investment opportunities in mainland China and continues to focus on long-term investments in core markets[14] - Swire Properties is committed to investing nearly 60% of its HKD 100 billion plan in core market projects by March 2024[16] - The company plans to focus on the Hong Kong and mainland China markets for future developments, emphasizing high-quality residential properties and asset optimization strategies[46] Real Estate and Property Performance - The total floor area of investment properties and hotels as of December 31, 2023, is 34.4 million square feet, an increase from 29.9 million square feet in 2022[44] - The investment property portfolio includes approximately 24.4 million square feet of completed properties, with 12.1 million square feet in office space and 9.1 million square feet in retail space[44] - The total revenue from the property sector was HKD 14,670 million in 2023, an increase from HKD 13,826 million in 2022, representing a growth of approximately 6.1%[47] - The operating profit from property investment was HKD 8,253 million in 2023, compared to HKD 7,695 million in 2022, showing an increase of about 7.2%[47] Retail and Consumer Insights - The retail sector in mainland China showed strong recovery post-pandemic, contributing positively to the company's overall performance[54] - In 2023, the retail sales in mainland China significantly rebounded post-pandemic, exceeding pre-pandemic levels[61] - The retail sales in Hong Kong's major shopping malls, including Pacific Place, Cityplaza, and Taikoo City, increased by 44%, 43%, and 6% respectively in 2023, contributing to an overall retail sales growth of 16%[71] Beverage Segment Performance - In 2023, the beverage segment reported revenues of HKD 51,844 million, a decrease of 7.5% from HKD 54,225 million in 2022[120] - EBITDA for the beverage segment increased significantly to HKD 28,807 million from HKD 5,545 million in 2022, indicating a substantial improvement in operational efficiency[120] - The beverage segment's sales volume reached 1,940 million unit cases in 2023, with a per capita consumption of 48 ounces in mainland China[112] Aviation and Travel Insights - Cathay Pacific's revenue for 2023 reached HKD 55.951 billion, a 308.8% increase compared to HKD 13.686 billion in 2022[152] - The passenger load factor improved to 85.7% in 2023, up from 73.6% in 2022, representing an increase of 12.1 percentage points[149] - The group expects passenger flights to reach 80% of pre-pandemic levels by Q2 2024 and aims for 100% by Q1 2025[164] Sustainability Initiatives - The company has set sustainability goals for 2030, integrating them into its business planning and decision-making processes[118] - Cathay Pacific aims to increase the use of sustainable aviation fuel to 10% of total fuel consumption by 2030 and achieve net-zero carbon emissions by 2050[33] Challenges and Market Conditions - The company anticipates challenges in mainland China due to sluggish consumer spending, while expecting stable growth in Hong Kong and improvements in Cambodia[138] - The Hong Kong office market is expected to remain weak in 2024 due to soft demand and increased supply, with rental rates under pressure[104]

Financial Performance - The company reported a significant increase in profit attributable to shareholders, reaching HKD 4,221 million for the six months ended June 30, 2023, a 121% increase compared to HKD 1,914 million in the same period of 2022[8]. - Basic earnings rose to HKD 5,594 million, marking a 219% increase from HKD 1,752 million year-on-year[8]. - Revenue for the period was HKD 51,544 million, reflecting a 15% growth compared to HKD 44,808 million in the previous year[8]. - The operating profit decreased by 25% to HKD 5,079 million from HKD 6,794 million in the same period last year[8]. - The company experienced a 284% increase in recurring basic profit, reaching HKD 4,879 million compared to HKD 1,272 million in the same period of 2022[8]. - The company's consolidated profit attributable to shareholders for the first six months of 2023 was HKD 42.21 billion, compared to HKD 19.14 billion in the same period of 2022, reflecting a significant increase[15]. - The basic profit attributable to shareholders, excluding changes in investment property values, was HKD 55.94 billion, up from HKD 17.52 billion year-on-year[15]. - The attributable profit for the first half of 2023 was HKD 63 million, a decrease from HKD 166 million in the same period of 2022, primarily due to increased losses in the cabin business and reduced unrealized exchange gains from Xiamen Swire[147]. Debt and Financial Position - The net debt increased by 52% to HKD 66,915 million from HKD 43,911 million year-on-year[8]. - The net debt to equity ratio (excluding lease liabilities) rose to 21.4%, an increase of 7.7 percentage points from 13.7% in the previous year[8]. - The group's net debt-to-equity ratio as of June 30, 2023, was 21.4%, with available liquid funds amounting to HKD 35.9 billion[23]. - The anticipated sale of the US bottling business is expected to reduce the net debt-to-equity ratio to 14.9%, strengthening the balance sheet further[23]. - The total borrowings and bonds as of June 30, 2023, amounted to HKD 80,355 million, an increase from HKD 68,373 million at the end of December 2022[189]. - The total amount of borrowings and lease liabilities due within one year was HKD 9.75 billion, representing 11% of total borrowings[195]. - The group maintained undrawn committed funding totaling HKD 8.74 billion as of June 30, 2023[190]. Investments and Strategic Focus - The company announced the sale of 100% equity in Swire Coca-Cola USA for approximately HKD 30.4 billion, which is expected to enhance the balance sheet and provide immediate substantial returns to shareholders[11]. - The company continues to focus on long-term growth in the Greater China and Southeast Asia regions, with ongoing investments in real estate, beverages, and aviation sectors[3]. - The company is actively seeking investment opportunities in healthcare services and major cities in mainland China and Southeast Asia[21]. - The company is focusing on long-term investments in the Greater Bay Area, including projects in Guangzhou and Shenzhen, as part of its strategic expansion[12]. - The investment plan of HKD 100 billion announced in March 2022 aims to invest in property development projects in Hong Kong and mainland China over the next decade[48]. - As of August 4, 2023, the company has committed approximately HKD 390 billion of the planned investment amount, with HKD 170 billion allocated to mainland China and HKD 110 billion each to Hong Kong and residential sales projects[48]. Real Estate and Property Performance - The real estate segment reported a recurring basic profit of HKD 31.88 billion, a 6% increase from HKD 29.94 billion in the first half of 2022, driven by a strong recovery in retail and hotel businesses in Hong Kong[16]. - The attributable basic profit from the property sector for the first half of 2023 was HKD 18,220 million, down from HKD 35,630 million in the same period of 2022[45]. - The performance of retail properties in Hong Kong and mainland China improved significantly, driven by the lifting of travel restrictions and pandemic measures[46]. - The hotel business in Hong Kong and mainland China saw a substantial recovery following the easing of pandemic measures, with strong performance reported in the United States[47]. - The rental income from office properties was HKD 2.96 billion, while retail properties generated HKD 3.51 billion in the first half of 2023[34]. - The rental income from the Hong Kong retail portfolio for the first half of 2023 was HKD 1.23 billion, an increase of 17% year-on-year, indicating a recovery post-pandemic[56]. - The company plans to double the total floor area of retail-led developments in first-tier and emerging first-tier cities in mainland China[48]. Beverage Segment Performance - Swire Coca-Cola's recurring profit increased by 41% to HKD 16.27 billion, with total revenue rising 14% to HKD 30.44 billion and sales volume increasing by 18% to 1.055 billion standard cases[17]. - For the six months ended June 30, 2023, Swire's revenue was HKD 30,446 million, a 15.5% increase from HKD 26,331 million in the same period of 2022[92]. - The profit from the beverage segment was HKD 1,627 million for the six months ended June 30, 2023, compared to HKD 1,152 million in the same period of 2022[185]. - Swire Coca-Cola recorded a profit attributable to shareholders of HKD 1.423 billion for the first half of 2023, including a non-recurring loss of HKD 239 million from an investment impairment related to a plastic recycling joint venture[103]. Airline Performance - Cathay Pacific recorded a profit of HKD 42.68 billion for the first half of 2023, a significant improvement from a loss of HKD 49.99 billion in the same period of 2022, driven by strong market demand following the lifting of quarantine requirements[18]. - Passenger revenue reached HKD 25.013 billion, up 1,109.5% from HKD 2.068 billion in the first half of 2022[124]. - The total number of passengers carried was 7.816 million, a 2,233.1% increase from 335,000 in the same period last year[124]. - Cathay Pacific's passenger capacity is projected to reach 70% of pre-pandemic levels by the end of 2023, serving 80 destinations, and aims for 100% by the end of 2024[137]. - The passenger load factor improved to 87.2%, up 28 percentage points from 59.2% in the first half of 2022[124]. Operational Highlights - The cash generated from operations was HKD 7,206 million, a 17% increase from HKD 6,147 million year-on-year[8]. - The company completed a share buyback program with a total cash consideration of HKD 700 million, repurchasing 8,998,500 'A' shares and 15,107,500 'B' shares[22]. - The company has initiated the presale of the residential development project "Hae Ying Shan" located in Wong Chuk Hang, Hong Kong[54]. - The company has obtained full ownership of two industrial sites in Quarry Bay, with plans to redevelop them into office and commercial spaces, totaling approximately 779,000 square feet[60]. - The company expects stable demand for base maintenance services in the second half of 2023, with a rebound in line maintenance services as air traffic recovers[159].

Corporate Statement Swire Pacific is a Hong Kong-based international conglomerate committed to long-term shareholder value growth, guided by core values and strategic focus on key Asian markets and emerging sectors [Company Overview and Objectives](index=3&type=section&id=Corporate%20Statement_Company%20Overview%20and%20Objectives) Swire Pacific is a Hong Kong-based international conglomerate with diversified, market-leading businesses, focused on long-term shareholder value growth and sustained dividend increases, with strategic emphasis on property, beverages, and aviation in Greater China and Southeast Asia - Swire Pacific is a Hong Kong-based international conglomerate with diversified, market-leading businesses, renowned in Greater China for over 150 years[3](index=3&type=chunk) - The company aims to achieve sustained shareholder value growth through long-term ideal equity returns and maintain continuous general dividend growth to reward shareholders[3](index=3&type=chunk) - Strategic focus is on Greater China and Southeast Asia, dedicated to developing core property, beverages, and aviation divisions, while exploring new areas like healthcare and sustainable food[3](index=3&type=chunk) [Core Values and Principles](index=3&type=section&id=Corporate%20Statement_Core%20Values%20and%20Principles) Swire Pacific upholds values of integrity, endeavor, excellence, humility, teamwork, and long-term development, with core principles including Asian market focus, flexible resource allocation, prudent financial management, talent development, robust partnerships, sustainable investments, and high corporate governance standards - Company values include integrity, endeavor, excellence, humility, teamwork, and long-term development[4](index=4&type=chunk) - Business concentrated in high-potential Asian regions, particularly Greater China, with years of experience and solid business relationships[4](index=4&type=chunk) - Flexible allocation of capital and talent within the group, fostering idea exchange and increasing investment opportunities[4](index=4&type=chunk) - Adopting prudent financial management to ensure long-term investment plans are unaffected by short-term financial market fluctuations[4](index=4&type=chunk) - Recruiting top talent, investing heavily in training and development, and prioritizing employee well-being[4](index=4&type=chunk) - Building mutually beneficial, stable, and lasting relationships with business partners[4](index=4&type=chunk) - Investing in sustainable development, believing it helps the group maintain long-term growth through innovation and efficiency improvements[4](index=4&type=chunk) - Committed to maintaining high corporate governance standards, preserving and developing the Swire brand and reputation[4](index=4&type=chunk) - Investment objective is to build a business portfolio capable of consistently providing stable dividends[5](index=5&type=chunk) - As a long-term investor, focusing on holding controlling interests in businesses and managing them for long-term growth[5](index=5&type=chunk) - Concentrating on developing businesses where expertise can contribute and create value[5](index=5&type=chunk) - Investing in businesses that offer excellent products and services and hold leading market positions[5](index=5&type=chunk) - Divesting from businesses that have fully realized their potential, reallocating capital into existing or new ventures[5](index=5&type=chunk) Performance Summary The company reported significant profit growth for H1 2023, driven by strong recurring underlying profit, despite a decline in operating profit due to investment property fair value changes, with increased net debt [Key Financial Data](index=4&type=section&id=Performance%20Summary_Key%20Financial%20Data) For H1 2023, profit attributable to shareholders surged **121% to HKD 4,221 million**, with recurring underlying profit up **284% to HKD 4,879 million**, revenue grew **15% to HKD 51,544 million**, but operating profit fell **25%** due to investment property fair value changes, and net debt increased **52%**, raising the net debt to capital ratio to **21.4%** Key Financial Data for the Six Months Ended June 30 | Indicator | 2023 (HKD million) | 2022 (HKD million) (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to company shareholders | 4,221 | 1,914 | +121% | | Underlying profit | 5,594 | 1,752 | +219% | | Recurring underlying profit | 4,879 | 1,272 | +284% | | Revenue | 51,544 | 44,808 | +15% | | Operating profit | 5,079 | 6,794 | -25% | | Operating profit excluding fair value changes of investment properties | 6,409 | 6,091 | +5% | | Fair value changes of investment properties | (1,330) | 703 | -289% | | Cash generated from operations | 7,206 | 6,147 | +17% | | Net cash outflow before financing | (3,493) | (2,243) | -56% | | Total equity (including non-controlling interests) | 312,933 | 321,421 | -3% | | Net debt | 66,915 | 43,911 | +52% | | Net debt to capital ratio (excluding lease liabilities) | 21.4% | 13.7% | +7.7 percentage points | Per Share Data for the Six Months Ended June 30 | Indicator | 2023 (HKD) | 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Earnings per share ('A' shares) | 2.91 | 1.28 | +127% | | Earnings per share ('B' shares) | 0.58 | 0.26 | - | | Underlying earnings per share ('A' shares) | 3.86 | 1.17 | +230% | | Underlying earnings per share ('B' shares) | 0.77 | 0.23 | - | | Dividend per share ('A' shares) | 1.20 | 1.15 | +4% | | Dividend per share ('B' shares) | 0.24 | 0.23 | - | | Equity attributable to company shareholders per share ('A' shares) | 177.89 | 175.80 | - | | Equity attributable to company shareholders per share ('B' shares) | 35.58 | 35.16 | +1% | Chairman's Statement The Chairman's report highlights a strong rebound in H1 2023 performance, driven by aviation, strategic investments in Asia, and the planned divestment of Swire Coca-Cola USA, while maintaining a robust financial position and commitment to sustainability [Overall Results and Strategic Development](index=5&type=section&id=Chairman%27s%20Statement_Overall%20Results%20and%20Strategic%20Development) In the first half of 2023, Swire Pacific's core divisions saw a comprehensive recovery, primarily driven by the strong rebound in the aviation sector, with the company continuing its long-term investment strategy in Hong Kong, mainland China, and Southeast Asia, and announcing the sale of Swire Coca-Cola USA, expected to yield significant shareholder returns and strengthen the balance sheet - In the first half of 2023, the Group's core divisions experienced a comprehensive recovery, with the aviation division being the main driver[8](index=8&type=chunk) - The company continues to steadfastly execute its strategic long-term plans for continuous investment in Hong Kong, mainland China, and Southeast Asia[8](index=8&type=chunk) - Announced the sale of 100% equity interest in Swire Coca-Cola USA for approximately **HKD 30.4 billion**, expected to bring immediate and substantial returns to shareholders and strengthen the Group's balance sheet[8](index=8&type=chunk) 2023 H1 Profit Attributable to Company Shareholders | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) | | :--- | :--- | :--- | | Consolidated profit | 4,221 | 1,914 | | Underlying profit (excluding fair value changes of investment properties) | 5,594 | 1,752 | | Recurring underlying profit | 4,879 | 1,272 | - Recurring underlying profit significantly increased, primarily due to the continued recovery of Cathay Group's business, higher profits from Swire Coca-Cola, and increased profits from Swire Properties, while HAECO Group was affected by increased losses in cabin design and refurbishment solutions business[10](index=10&type=chunk) [Divisional Performance Overview](index=6&type=section&id=Chairman%27s%20Statement_Divisional%20Performance%20Overview) The Property division's recurring underlying profit grew **6%**, driven by strong recovery in Hong Kong retail and hotel businesses and improved retail sales in mainland China, while the Beverages division's recurring profit increased **41%**, benefiting from strong US performance and new Vietnam acquisitions, and the Aviation division achieved a significant turnaround to profit, with Cathay Group's attributable profit reaching **HKD 4.268 billion** and HK Express recording its first profit 2023 H1 Key Divisional Recurring Underlying Profit | Division | 2023 H1 (HKD million) | 2022 H1 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Property Division | 3,188 | 2,994 | +6% | | Beverages Division | 1,627 | 1,152 | +41% | | Aviation Division (Cathay Group attributable profit) | 4,268 | (4,999) | Turned to profit | | HAECO Group attributable profit | 63 | 166 | -62% | - Property division's performance improved, primarily driven by the strong recovery of Hong Kong's retail and hotel businesses and mainland China's shopping mall retail sales exceeding pre-pandemic levels[11](index=11&type=chunk) - Beverages division's profit significantly increased, with strong performance in the US business and new acquisitions in Vietnam beginning to contribute substantial profits[12](index=12&type=chunk)[13](index=13&type=chunk) - Aviation division's Cathay Group achieved a significant turnaround to profit, with HK Express recording its first profit, reflecting the recovery of Hong Kong's international aviation hub[14](index=14&type=chunk)[15](index=15&type=chunk) - Trading & Industrial division's recurring profit increased, mainly due to increased visitor arrivals in Hong Kong and improved local market sentiment[16](index=16&type=chunk) [Dividends, Financial Strength, and Sustainability](index=8&type=section&id=Chairman%27s%20Statement_Dividends%2C%20Financial%20Strength%2C%20and%20Sustainability) Swire Pacific declared a first interim dividend of **HKD 1.20 per 'A' share** and **HKD 0.24 per 'B' share**, a **4% increase** from the prior year, having completed a **HKD 4 billion** share repurchase program and planning a special dividend post-Swire Coca-Cola USA sale, while maintaining a robust financial position with a **21.4% net debt to capital ratio** and a commitment to sustainability through its SwireTHRIVE strategy 2023 First Interim Dividend | Share Class | Dividend per Share (HKD) | Change from 2022 First Interim Dividend (%) | | :--- | :--- | :--- | | 'A' shares | 1.20 | +4% | | 'B' shares | 0.24 | +4% | - Completed a **HKD 4 billion** share repurchase program and plans to distribute a special dividend after the sale of Swire Coca-Cola USA (**HKD 8.120 per 'A' share** and **HKD 1.624 per 'B' share**)[17](index=17&type=chunk) Financial Strength Indicators | Indicator | As at June 30, 2023 | | :--- | :--- | | Net debt to capital ratio | 21.4% | | Available liquidity | HKD 35.9 billion | | Estimated net debt to capital ratio after US bottling business sale | 14.9% | - The company has set specific goals through its SwireTHRIVE sustainability strategy, including reducing environmental footprint, promoting an accessible and inclusive corporate culture, and implementing impactful community work[19](index=19&type=chunk) [Outlook](index=8&type=section&id=Chairman%27s%20Statement_Outlook) Despite an uncertain economic outlook for the remainder of 2023, Swire Pacific anticipates the H1 performance rebound to continue into H2, driven by Cathay Group's recovery, with Swire Properties' flagship brands in mainland China and Hong Kong expected to remain popular amid ongoing market recovery, Swire Coca-Cola's business projected to be stable with substantial full-year contributions from new Vietnam acquisitions, and Cathay Pacific's passenger capacity expected to reach **70% of pre-pandemic levels by year-end** and **100% by end-2024**, while HAECO anticipates stable base maintenance demand and increased demand for line maintenance and engine overhaul services - The H1 2023 performance rebound is expected to continue into H2, primarily driven by the recovery of Cathay Group's business[20](index=20&type=chunk) - Swire Properties: Flagship brands in mainland China and Hong Kong will continue to be highly sought after, various development projects are ongoing, and core markets are expected to continue their recovery[20](index=20&type=chunk) - Swire Coca-Cola: Business is expected to remain stable, new acquisitions in Vietnam will contribute substantially for the full year, and Cambodia's business is anticipated to improve in H2[20](index=20&type=chunk) - Cathay Pacific: Business continues to recover, with passenger capacity expected to reach **70% of pre-pandemic levels by year-end**, serving 80 destinations, and **100% by end-2024**[21](index=21&type=chunk) - HAECO: Base maintenance demand is expected to be stable in H2 2023, with increasing demand for line maintenance and engine overhaul services[21](index=21&type=chunk) Business Review This section provides a detailed review of the performance and strategic developments across the Property, Beverages, Aviation, Healthcare, and Trading & Industrial divisions for the reporting period [Property Division](index=10&type=section&id=Business%20Review_Property%20Division) Swire Properties' business encompasses property investment, hotel investment, and property trading, primarily in Hong Kong, mainland China, and Miami, USA, with the division's attributable recurring underlying profit growing **6% to HKD 3.188 billion** in H1 2023, driven by strong recovery in Hong Kong retail and hotel businesses and significant improvement in mainland China retail sales, despite a weak Hong Kong office market, as the company executes a **HKD 100 billion** investment plan with multiple major development projects underway - Swire Properties' business comprises three main areas: property investment, hotel investment, and property trading, with primary markets in Hong Kong, mainland China, and Miami, USA[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Property Division 2023 H1 Financial Summary | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) (Restated) | | :--- | :--- | :--- | | Total Revenue | 7,297 | 6,910 | | Total Operating Profit | 2,871 | 4,892 | | Attributable Profit | 2,222 | 4,347 | | Profit attributable to Swire Pacific | 1,822 | 3,563 | | Underlying profit attributable to Swire Pacific | 3,195 | 3,401 | | Recurring underlying profit attributable to Swire Pacific | 3,188 | 2,994 | - In H1 2023, the Property division's attributable recurring underlying profit was **HKD 3.188 billion**, an increase of **6%** compared to H1 2022, primarily reflecting the strong recovery in Hong Kong's retail and hotel businesses and increased rental income from mainland China's retail properties[11](index=11&type=chunk)[31](index=31&type=chunk) - Swire Properties is executing a **HKD 100 billion** investment plan, having committed approximately **HKD 39 billion** to property development and residential trading projects in Hong Kong, mainland China, and Southeast Asia[32](index=32&type=chunk) [Hong Kong Properties](index=14&type=section&id=Business%20Review_Property%20Division_Hong%20Kong%20Properties) Despite subdued demand in the Hong Kong office market, resulting in a **2% decrease** in gross rental income, Swire Properties' office portfolio remained resilient with a **90% occupancy rate**, while the retail property portfolio saw a significant rebound, with gross rental income increasing **17%**, driven by tourism recovery and eased anti-pandemic measures, with some mall sales returning to pre-pandemic levels, and residential property occupancy at approximately **77%**, with several development and planning projects underway Hong Kong Properties 2023 H1 Gross Rental Income | Property Type | 2023 H1 (HKD million) | 2022 H1 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Office | 2,778 | 2,835 | -2% | | Retail | 1,230 | 1,050 | +17% | - Hong Kong office portfolio was **90% leased** as at June 30, 2023, or **94% excluding Two Taikoo Place**, demonstrating resilience[34](index=34&type=chunk) - Retail sales at Pacific Place shopping mall, Cityplaza, and Citygate Outlets increased by **60%**, **12%**, and **62%** respectively in the first half[35](index=35&type=chunk) - One Taikoo Place is expected to be completed by the end of 2023, while Wah Ha Factory Building and仁孚工業大廈 (Yan Foo Industrial Building) in Quarry Bay will be redeveloped for office and other commercial uses[36](index=36&type=chunk)[37](index=37&type=chunk) [Mainland China Properties](index=15&type=section&id=Business%20Review_Property%20Division_Mainland%20China%20Properties) Mainland China's retail properties experienced significantly improved footfall and retail sales well above pre-pandemic levels after the easing of anti-pandemic measures, leading to a **30% increase** in gross rental income, with substantial growth across major retail properties, while office gross rental income decreased **6%** but increased **1%** excluding RMB currency fluctuations, and several development projects are in progress - Mainland China retail properties saw significant improvement in footfall, with retail sales well exceeding pre-pandemic levels, and Swire Properties' attributable retail sales increasing by **41%**[39](index=39&type=chunk) Mainland China Key Retail Properties 2023 H1 Retail Sales Growth | Property | Retail Sales Growth (%) | | :--- | :--- | | Taikoo Li Sanlitun, Beijing | +29% | | Sino-Ocean Taikoo Li Chengdu | +27% | | Taikoo Hui, Guangzhou | +16% | | INDIGO, Beijing | +34% | | HKRI Taikoo Hui, Shanghai | +72% | | Taikoo Li Qiantan, Shanghai | +169% | - Mainland China retail properties' gross rental income increased **30% to HKD 2.042 billion**, or **37%** excluding rental support and RMB currency fluctuations[40](index=40&type=chunk) - Office gross rental income decreased **6%**, but increased **1%** excluding RMB currency fluctuations, with occupancy rates of **90%** at Taikoo Hui, Guangzhou, **92%** at INDIGO Phase 1, Beijing, and **98%** at HKRI Taikoo Hui, Shanghai[40](index=40&type=chunk) - Major development projects include INDIGO Phase 2, Taikoo Li Xi'an, and a retail landmark project in Sanya, expected to be completed in phases starting from 2025[40](index=40&type=chunk) [US Properties and Hotel Business](index=17&type=section&id=Business%20Review_Property%20Division_US%20Properties%20and%20Hotel%20Business) Miami's Brickell City Centre shopping mall achieved a **90% occupancy rate** and a **7% increase** in retail sales in H1, with Swire Properties planning to develop the luxury residential project One Island Drive on Brickell Key, while hotel businesses in Hong Kong and mainland China saw strong recovery due to eased anti-pandemic measures, and US hotels performed well, with Swire Properties-managed hotels recording an operating profit before depreciation of **HKD 59 million**, reversing a loss from the prior year - Miami's Brickell City Centre shopping mall had a **90% occupancy rate** as at June 30, 2023, with retail sales increasing by **7%** in the first half[43](index=43&type=chunk)[44](index=44&type=chunk) - Swire Properties plans to develop the luxury residential project One Island Drive on Brickell Key in Miami, including private luxury residences and a new Mandarin Oriental hotel[32](index=32&type=chunk)[54](index=54&type=chunk) - Hong Kong and mainland China hotel businesses experienced strong recovery, and US hotels performed well, with Swire Properties-managed hotels recording an operating profit before depreciation of **HKD 59 million** in H1 2023, compared to a loss of **HKD 74 million** in H1 2022[46](index=46&type=chunk) - Hong Kong hotel business is expected to recover further, mainland China hotel business to grow, and US hotels to continue performing well[47](index=47&type=chunk) [Property Trading and Capital Commitments](index=18&type=section&id=Business%20Review_Property%20Division_Property%20Trading%20and%20Capital%20Commitments) Property trading operations include residential development projects in Hong Kong, Indonesia, Vietnam, and Thailand, with **33 units sold** at EIGHT STAR STREET in Hong Kong and **48 units pre-sold** at the Blue Coast project in Wong Chuk Hang, while the Group's total capital commitments as at June 30, 2023, amounted to **HKD 24.875 billion**, with **HKD 9.613 billion** in Hong Kong and **HKD 15.235 billion** in mainland China, and the Hong Kong residential market is expected to remain cautious in the short term but stable in the medium to long term, with optimistic outlooks for Southeast Asia and Miami - Of the 37 units in the EIGHT STAR STREET residential building in Hong Kong, **33 have been sold**, and **48 out of 432 units** in the Blue Coast residential project in Wong Chuk Hang have been pre-sold[49](index=49&type=chunk) - Residential development projects are underway or planned in Jakarta, Indonesia, Ho Chi Minh City, Vietnam, and Bangkok, Thailand[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) Investment Properties and Hotel Capital Commitments Overview (As at June 30, 2023) | Location | Total Commitment (HKD million) | | :--- | :--- | | Hong Kong | 9,613 | | Mainland China | 15,235 | | USA | 27 | | **Total** | **24,875** | - The Hong Kong residential market is expected to see cautious buyer sentiment in the short term but stable market sentiment in the medium to long term, while residential property markets in Jakarta, Indonesia, Ho Chi Minh City, Vietnam, and Bangkok, Thailand, are performing steadily, and the luxury residential property market in Miami has an optimistic outlook[52](index=52&type=chunk) [Beverages Division](index=20&type=section&id=Business%20Review_Beverages%20Division) Swire Coca-Cola holds Coca-Cola product franchises in mainland China, Hong Kong, Taiwan, Vietnam, Cambodia, and the western USA, covering a population of **877 million**, with the division's attributable recurring profit significantly increasing **41% to HKD 1.627 billion** in H1 2023, total revenue growing **14% to HKD 30.442 billion**, and sales volume up **18%**, driven by strong US performance and substantial contributions from new Vietnam acquisitions, and the company has signed an agreement to sell its entire interest in Swire Coca-Cola USA, expecting to record over **HKD 22 billion** in disposal gains - Swire Coca-Cola holds Coca-Cola product franchises in mainland China, Hong Kong, Taiwan, Vietnam, Cambodia, and the western USA, covering a population of **877 million**[56](index=56&type=chunk) Beverages Division 2023 H1 Financial Summary | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) | | :--- | :--- | :--- | | Revenue | 30,446 | 26,331 | | Operating profit | 2,014 | 1,603 | | Attributable profit (including non-recurring items) | 1,423 | 1,152 | | Recurring profit | 1,627 | 1,152 | - In H1 2023, the Beverages division's attributable recurring profit was **HKD 1.627 billion**, an increase of **41%** compared to H1 2022, with total revenue rising **14% to HKD 30.442 billion** and sales volume increasing **18% to 1.055 billion standard cases**[12](index=12&type=chunk)[61](index=61&type=chunk) - An agreement has been signed to sell the entire interest in Swire Coca-Cola USA for a total consideration of **USD 3.9 billion**, with an expected consolidated disposal gain of over **HKD 22 billion**[62](index=62&type=chunk) [Regional Performance](index=22&type=section&id=Business%20Review_Beverages%20Division_Regional%20Performance) Mainland China operations saw a **5% increase** in attributable profit, with sales volume and business returning to normal and revenue growing **6%** in local currency, while Hong Kong's attributable profit decreased **10%** due to rising raw material costs and increased operating expenses, and Taiwan's attributable profit fell **11%** despite sales growth, impacted by unfavorable exchange rate movements, with Southeast Asia's attributable profit at **HKD 70 million** driven by strong Vietnam performance, and US operations' attributable profit surged **65%**, with revenue up **13%** in local currency due to price adjustments and improved product mix, despite a decline in sales volume Beverages Division 2023 H1 Regional Attributable Profit and Change | Region | 2023 H1 Attributable Profit (HKD million) | 2022 H1 Attributable Profit (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 616 | 586 | +5% | | Hong Kong | 56 | 62 | -10% | | Taiwan | 47 | 53 | -11% | | Southeast Asia | 70 | - | - | | USA | 913 | 554 | +65% | - Mainland China: Sales volume and business returned to normal, with revenue increasing **6%** in local currency, and growth across sparkling, water, juice, energy, coffee, and tea beverages[62](index=62&type=chunk) - Hong Kong: Sales volume recovered, but raw material costs, operating expenses, and depreciation increased, leading to a decrease in EBITDA margin from **14.6% to 13.1%**[63](index=63&type=chunk) - Taiwan: Sales volume and business continued to grow, but unfavorable exchange rate movements impacted profit, with EBITDA margin decreasing from **11.4% to 10.4%**[64](index=64&type=chunk) - Southeast Asia: Vietnam operations performed strongly, while the Cambodian beverage market remained challenging[65](index=65&type=chunk) - USA: Revenue growth reflected price adjustments and a better product mix, with EBITDA margin increasing from **10.8% to 13.9%**[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [Aviation Division](index=24&type=section&id=Business%20Review_Aviation%20Division) The Aviation division, comprising Cathay Group and HAECO Group, recorded an attributable profit of **HKD 1.796 billion** in H1 2023, reversing a loss from the prior year, with Cathay Group performing exceptionally well, achieving an attributable profit of **HKD 4.268 billion** driven by strong passenger demand post-reopening of Hong Kong and mainland China borders, and HK Express recording its first profit, while HAECO Group's attributable profit decreased to **HKD 63 million** due to increased losses in cabin business and reduced unrealized exchange gains, and Cathay Pacific is actively rebuilding its flight network, expecting passenger capacity to reach **70% of pre-pandemic levels by year-end** and **100% by end-2024** - The Aviation division comprises associate company Cathay Group and wholly-owned subsidiary Hong Kong Aircraft Engineering Company (HAECO) Group[71](index=71&type=chunk) Aviation Division 2023 H1 Financial Summary | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) | | :--- | :--- | :--- | | HAECO Group attributable profit | 63 | 166 | | Cathay Group attributable profit/(loss) | 1,796 | (2,236) | - In H1 2023, the Aviation division's attributable profit was **HKD 1.796 billion**, reversing a loss of **HKD 2.236 billion** in H1 2022[76](index=76&type=chunk) - Cathay Group's attributable profit was **HKD 4.268 billion**, primarily benefiting from strong passenger demand following the full reopening of Hong Kong and mainland China borders, with HK Express recording its first profit[14](index=14&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - HAECO Group's attributable profit decreased to **HKD 63 million**, mainly due to increased losses in the cabin business and reduced unrealized exchange gains at HAECO Xiamen[15](index=15&type=chunk)[91](index=91&type=chunk) [Cathay Group](index=25&type=section&id=Business%20Review_Aviation%20Division_Cathay%20Group) Cathay Pacific's passenger revenue surged **1,110% to HKD 25.013 billion** in H1 2023, carrying **7.8 million passengers** with an **87.2% load factor**, while cargo revenue decreased **12% to HKD 10.741 billion** due to a weak global air cargo market, and total fuel costs increased **148%**, with the airline's fleet totaling **225 aircraft**, and the Cathay Group remains confident in Hong Kong's long-term future as an international aviation hub, expecting passenger capacity to reach **70% of pre-pandemic levels by year-end** and **100% by end-2024** Cathay Pacific 2023 H1 Passenger Data | Indicator | 2023 H1 | 2022 H1 | Change (%) | | :--- | :--- | :--- | :--- | | Passenger revenue (HKD million) | 25,013 | 2,068 | +1109.5% | | Revenue passenger kilometers (million) | 32,308 | 1,810 | +1685.0% | | Revenue passengers carried (thousand) | 7,816 | 335 | +2233.1% | | Passenger load factor (%) | 87.2 | 59.2 | +28.0 percentage points | Cathay Pacific 2023 H1 Cargo Data | Indicator | 2023 H1 | 2022 H1 | Change (%) | | :--- | :--- | :--- | :--- | | Cargo revenue (HKD million) | 10,741 | 12,148 | -11.6% | | Cargo revenue tonne kilometers (million) | 3,886 | 2,123 | +83.0% | | Cargo carried (thousand tonnes) | 651 | 526 | +23.8% | | Cargo load factor (%) | 63.8 | 75.8 | -12.0 percentage points | - Cathay Pacific's total fuel costs (before fuel hedging impact) increased by **HKD 6.085 billion (or 148%)** compared to H1 2022[81](index=81&type=chunk) - Cathay Group's total fleet comprises **225 aircraft** with an average age of **10.7 years**, and passenger capacity is expected to reach **70% of pre-pandemic levels by end-2023** and **100% by end-2024**[82](index=82&type=chunk)[84](index=84&type=chunk)[86](index=86&type=chunk) [HAECO Group](index=29&type=section&id=Business%20Review_Aviation%20Division_HAECO%20Group) HAECO Group, providing aircraft maintenance and repair services, reported an attributable profit of **HKD 63 million** in H1 2023, a decrease from the prior year, primarily due to increased losses in the cabin business and reduced unrealized exchange gains at HAECO Xiamen, while airframe business losses decreased and line maintenance services handled **52% more flights**, and the components business's attributable profit surged **252% to HKD 81 million**, with engine business attributable profit increasing **5%** driven by strong demand for engine overhaul services at HAECO Engine Services (Xiamen), and stable base maintenance demand is anticipated for H2, with rising demand for line maintenance and engine overhaul services - HAECO Group provides aircraft maintenance and repair services, with core businesses including airframe maintenance and modification, engine support, and overhaul engineering[87](index=87&type=chunk) HAECO Group 2023 H1 Attributable Profit | Business Segment | 2023 H1 Attributable Profit (HKD million) | 2022 H1 Attributable Profit (HKD million) | | :--- | :--- | :--- | | Airframe | (1) | (18) | | Cabin | (214) | (49) | | Components | 81 | 23 | | Engine | 263 | 250 | | Others | (66) | (40) | | **Total** | **63** | **166** | - The decrease in profit was primarily due to increased losses recorded in the cabin business and reduced unrealized exchange gains at HAECO Xiamen[91](index=91&type=chunk) - Airframe business: Losses decreased, with line maintenance services handling **52% more flights** and base maintenance service hours increasing **7%**[92](index=92&type=chunk) - Components business: Attributable profit increased **252% to HKD 81 million**, with significant improvement in component repair and overhaul business performance[96](index=96&type=chunk) - Engine business: Attributable profit increased **5%**, primarily driven by strong demand for engine overhaul services at HAECO Engine Services (Xiamen)[97](index=97&type=chunk) - Outlook: Base maintenance service demand is expected to be stable in H2, line maintenance services will continue to rebound, and engine overhaul service demand is projected to be higher than in H1[98](index=98&type=chunk)[102](index=102&type=chunk) [Healthcare](index=33&type=section&id=Business%20Review_Healthcare) Swire Pacific's healthcare involvement is primarily through associate investments in the Yangtze River Delta and Greater Bay Area, including Columbia China, Shenzhen New Frontier United Family Hospital and C-Mer Medical Group, and DeltaHealth, with the Group's share of losses from healthcare companies decreasing to **HKD 80 million** in H1 2023 as hospitals began to recover from the pandemic, and the Group has invested **HKD 1.7 billion** and is actively expanding its service platform, seeking investment opportunities in major city clusters across mainland China and Southeast Asia - The Group holds associate investments in Columbia China, SHH Core Holding Limited (which owns Shenzhen New Frontier United Family Hospital and C-Mer Medical Group), and DeltaHealth China Limited (which operates Shanghai Delta Hospital and DeltaWest Clinic)[103](index=103&type=chunk)[104](index=104&type=chunk) Healthcare Business 2023 H1 Share of Loss | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) | | :--- | :--- | :--- | | Share of loss | 80 | 95 | - The reduction in loss was mainly due to hospitals beginning to recover from the pandemic, with patient numbers and revenue expected to continue rising[105](index=105&type=chunk) - The Group has invested **HKD 1.7 billion** in healthcare businesses and is actively expanding its service platform, continuing to seek investment opportunities in major city clusters across mainland China and Southeast Asia[106](index=106&type=chunk) [Trading & Industrial](index=34&type=section&id=Business%20Review_Trading%20and%20Industrial) The Trading & Industrial division, comprising Swire Resources, Swire Motors, Swire Foods, and Swire Waste Management, recorded an attributable profit of **HKD 185 million** in H1 2023, reversing a loss from the prior year, with Swire Resources' revenue increasing **27%** benefiting from border reopening and consumption voucher schemes, Swire Motors' sales volume growing **21%** and revenue up **25%**, Swire Foods' loss significantly narrowed, while Swire Sugar's profit decreased, and Swire Waste Management's attributable profit remained stable, with H2 recurring profit expected to be lower than H1 Trading & Industrial 2023 H1 Financial Summary | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) | | :--- | :--- | :--- | | Revenue | 5,393 | 4,534 | | Operating profit | 245 | (255) | | Attributable profit/(loss) | 185 | (311) | | Recurring profit | 185 | 113 | - In H1 2023, the Trading & Industrial division's attributable profit was **HKD 185 million**, reversing an attributable loss of **HKD 311 million** in H1 2022[109](index=109&type=chunk) - Swire Resources: Attributable profit increased to **HKD 65 million**, with revenue up **27%**, benefiting from border reopening and consumption voucher schemes[110](index=110&type=chunk) - Swire Motors: Attributable profit increased to **HKD 118 million**, with sales volume rising **21% to 10,065 vehicles** and revenue up **25%**[111](index=111&type=chunk) - Swire Foods: Attributable loss narrowed to **HKD 9 million**, with Qinyuan Bakery's loss decreasing, while Swire Sugar's profit decreased[112](index=112&type=chunk) - Swire Waste Management: Attributable profit was **HKD 22 million**, similar to the prior year[113](index=113&type=chunk) - Recurring profit for the Trading & Industrial division is expected to be lower in H2 2023 than in H1, with Swire Motors facing intensified market competition and Qinyuan Bakery continuing to integrate its retail network[113](index=113&type=chunk)[114](index=114&type=chunk) Financial Review The financial review details the reconciliation of profit, departmental contributions, and key financial adjustments for the reporting period [Profit Reconciliation and Divisional Contributions](index=37&type=section&id=Financial%20Review_Profit%20Reconciliation%20and%20Divisional%20Contributions) In H1 2023, profit attributable to company shareholders was **HKD 4.221 billion**, adjusted to an underlying profit attributable to company shareholders of **HKD 5.594 billion** after accounting for investment property valuation changes and related deferred tax, and further adjusted to a recurring underlying profit of **HKD 4.879 billion** after excluding significant non-recurring items, with the Property division contributing **HKD 3.188 billion** in recurring underlying profit, Beverages **HKD 1.627 billion**, Aviation (Cathay Group) **HKD 782 million**, and Trading & Industrial **HKD 185 million** Reconciliation of Profit Attributable to Company Shareholders to Underlying Profit (For the Six Months Ended June 30, 2023) | Indicator | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Profit attributable to company shareholders | 4,221 | 1,914 | | Valuation loss/(gain) on investment properties | 1,646 | (757) | | Deferred tax on investment properties | 347 | 213 | | Realised valuation gains on disposal of interests in investment properties | 29 | 299 | | Depreciation of investment properties for own use | 14 | 14 | | Amortisation of right-of-use assets reported under investment properties | (41) | (42) | | Remeasurement gain on interests in joint ventures becoming subsidiaries upon acquisition completion | (306) | - | | Adjustments attributable to non-controlling interests | (316) | 111 | | **Underlying profit attributable to company shareholders** | **5,594** | **1,752** | Reconciliation of Recurring Underlying Profit to Significant Non-Recurring Items (For the Six Months Ended June 30, 2023) | Indicator | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Underlying profit attributable to company shareholders | 5,594 | 1,752 | | Significant non-recurring items: | | | | Gains on disposal of interests in investment properties and properties held for sale | (7) | (407) | | Gains on disposal of property, plant and equipment, intangible assets and other investments | (853) | (79) | | Impairment of property, plant and equipment, right-of-use assets, intangible assets and investments | 145 | 424 | | Remeasurement gains and disposal of assets classified as held for sale | - | (418) | | **Recurring underlying profit** | **4,879** | **1,272** | Recurring Underlying Profit by Division (For the Six Months Ended June 30, 2023) | Division | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Property | 3,188 | 2,994 | | Beverages | 1,627 | 1,152 | | Aviation (Cathay Group) | 782 | (2,385) | | Aviation (HAECO Group and others) | 52 | 149 | | Trading & Industrial | 185 | 113 | | Head Office, Healthcare and Others | (955) | (768) | | **Total Recurring Underlying Profit** | **4,879** | **1,272** | Financing This section outlines the company's cash flow, financing activities, debt structure, and financial strength, including capital commitments and net debt ratios [Cash Flow and Financing Changes](index=38&type=section&id=Financing_Cash%20Flow%20and%20Financing%20Changes) In H1 2023, Swire Pacific's cash generated from operations was **HKD 7.206 billion**, with net interest paid at **HKD 1.336 billion**, and net cash used in investing activities amounted to **HKD 8.646 billion**, resulting in a net cash outflow before financing of **HKD 3.493 billion**, while net cash generated from financing activities was **HKD 4.126 billion**, primarily from increased borrowings, leading to a **HKD 633 million increase** in cash and cash equivalents during the period, with total borrowings and bonds rising to **HKD 80.355 billion** and lease liabilities to **HKD 4.957 billion** 2023 H1 Cash Flow Summary | Indicator | 2023 H1 (HKD million) | 2022 H1 (HKD million) | | :--- | :--- | :--- | | Cash generated from operations | 7,206 | 6,147 | | Net interest paid | (1,336) | (915) | | Cash used in investing activities | (8,646) | (6,504) | | Net cash outflow before financing | (3,493) | (2,243) | | Net cash generated from/(used in) financing activities | 4,126 | (6,922) | | Increase/(decrease) in cash and cash equivalents | 633 | (9,165) | 2023 H1 Financing Changes Analysis | Indicator | As at June 30, 2023 (HKD million) | As at December 31, 2022 (HKD million) | | :--- | :--- | :--- | | Borrowings and bonds (period-end balance) | 80,355 | 68,373 | | Lease liabilities (period-end balance) | 4,957 | 4,916 | | Drawdown of borrowings and refinancing | 13,508 | 25,676 | | Repayment of borrowings and bonds | (4,556) | (18,866) | | Principal portion of lease payments | (445) | (880) | [Funding Sources and Debt Structure](index=39&type=section&id=Financing_Funding%20Sources%20and%20Debt%20Structure) As at June 30, 2023, Swire Pacific's committed borrowing facilities and debt securities totaled **HKD 102.953 billion**, with **22% unutilized**, and the Group held bank balances and short-term deposits of **HKD 13.44 billion**, while total borrowings and lease liabilities amounted to **HKD 85.312 billion**, with **57% repayable within 2 to 5 years**, and the currency mix showed **85% in HKD** and **10% in RMB**, with **64% of total borrowings at fixed rates**, and the net debt to capital ratio stood at **21.4%**, rising to **28.7%** when including net debt of joint ventures and associates Funding Sources as at June 30, 2023 | Category | Total Available (HKD million) | Utilized (HKD million) | Total Unutilized (HKD million) | | :--- | :--- | :--- | :--- | | Total committed facilities | 102,953 | 80,470 | 22,483 | | Total uncommitted facilities | 8,969 | 222 | 8,747 | | **Total** | **111,922** | **80,692** | **31,230** | - The Group held bank balances and short-term deposits of **HKD 13.44 billion** as at June 30, 2023[121](index=121&type=chunk) Total Borrowings and Lease Liabilities Repayment Schedule (As at June 30, 2023) | Period | Borrowings and Bonds (HKD million) | Lease Liabilities (HKD million) | Total (HKD million) | | :--- | :--- | :--- | :--- | | Within one year | 9,004 | 750 | 9,754 | | Between one and two years | 14,857 | 614 | 15,471 | | Between two and five years | 45,442 | 1,200 | 46,642 | | Over five years | 11,052 | 2,393 | 13,445 | | **Total** | **80,355** | **4,957** | **85,312** | Total Borrowings and Lease Liabilities Currency Mix (As at June 30, 2023) | Currency | Borrowings and Bonds (%) | Lease Liabilities (%) | Total (HKD million) | | :--- | :--- | :--- | :--- | | HKD | 85% | 58% | 71,068 | | USD | 5% | 4% | 4,510 | | RMB | 10% | 23% | 8,785 | | Others | 0% | 15% | 949 | | **Total** | **100%** | **100%** | **85,312** | - **64%** of the Group's total borrowings are at fixed rates, and **36%** are at floating rates[126](index=126&type=chunk) Net Debt to Capital Ratio and Interest Cover | Indicator | As at June 30, 2023 | As at December 31, 2022 | | :--- | :--- | :--- | | Net debt to capital ratio (excluding lease liabilities) | 21.4% | 18.0% | | Net debt to capital ratio (including lease liabilities) | 23.0% | 19.5% | | Interest cover | 4.8 | 8.3 | | Cash interest cover | 3.6 | 6.0 | | Underlying cash interest cover | 4.7 | 6.1 | - If the net debt of joint ventures and associates were added to the Group's net debt, the net debt to capital ratio would increase to **28.7%** as at June 30, 2023 (December 31, 2022: **27.6%**)[129](index=129&type=chunk) Review Report on Condensed Interim Financial Statements PwC's review concludes that the condensed interim financial statements for H1 2023 are prepared in all material respects in accordance with HKAS 34, without expressing an audit opinion [Review Conclusion](index=43&type=section&id=Review%20Report%20on%20Condensed%20Interim%20Financial%20Statements_Review%20Conclusion) PricewaterhouseCoopers has reviewed Swire Pacific Limited's condensed interim financial statements for the six months ended June 30, 2023, conducted in accordance with Hong Kong Standard on Review Engagements 2410, and while the scope is less than an audit, no matters were identified that would lead the auditor to believe the statements are not prepared in all material respects in accordance with HKAS 34 - PricewaterhouseCoopers has reviewed Swire Pacific Limited's condensed interim financial statements for the six months ended June 30, 2023[131](index=131&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, with a scope less than an audit, thus no audit opinion is expressed[132](index=132&type=chunk) - The review concluded that no matters were identified that would lead the auditor to believe the condensed interim financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[133](index=133&type=chunk) Condensed Interim Financial Statements This section presents the company's consolidated income statement, comprehensive income, financial position, cash flows, and equity changes for the interim period [Consolidated Income Statement](index=44&type=section&id=Condensed%20Interim%20Financial%20Statements_Consolidated%20Income%20Statement) For the six months ended June 30, 2023, Swire Pacific reported revenue from continuing operations of **HKD 51.544 billion** and operating profit of **HKD 5.079 billion**, with profit for the period at **HKD 4.867 billion**, of which **HKD 4.221 billion** was attributable to company shareholders, and earnings per share (A shares) were **HKD 2.91** Consolidated Income Statement Summary (For the Six Months Ended June 30, 2023) | Indicator | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Revenue | 51,544 | 44,284 | | Gross profit | 19,208 | 16,936 | | Operating profit | 5,079 | 6,297 | | Net finance expenses | (1,057) | (683) | | Profit before tax | 6,516 | 3,912 | | Profit from continuing operations | 4,867 | 2,582 | | Profit for the period | 4,867 | 3,029 | | Profit attributable to company shareholders (from continuing operations) | 4,221 | 1,472 | | Profit attributable to non-controlling interests (from continuing operations) | 646 | 1,110 | | Earnings per share ('A' shares) | 2.91 | 0.98 | | Earnings per share ('B' shares) | 0.58 | 0.20 | [Consolidated Statement of Comprehensive Income](index=45&type=section&id=Condensed%20Interim%20Financial%20Statements_Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2023, Swire Pacific's profit for the period was **HKD 4.867 billion**, with a net other comprehensive loss of **HKD 3.447 billion**, primarily due to net exchange differences on overseas operations and cash flow hedge losses, resulting in a total comprehensive income for the period of **HKD 1.420 billion**, of which **HKD 1.285 billion** was attributable to company shareholders Consolidated Statement of Comprehensive Income Summary (For the Six Months Ended June 30, 2023) | Indicator | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Profit for the period | 4,867 | 3,029 | | Items that will not be reclassified to profit or loss (net) | (453) | (356) | | Items that may be reclassified subsequently to profit or loss (net) | (2,994) | (2,270) | | Other comprehensive loss for the period, after tax | (3,447) | (2,626) | | Total comprehensive income/(loss) for the period | 1,420 | 403 | | Total comprehensive income/(loss) attributable to company shareholders (from continuing operations) | 1,285 | (608) | | Total comprehensive income/(loss) attributable to non-controlling interests (from continuing operations) | 135 | 526 | - Net exchange differences on overseas operations recognized a loss of **HKD 1.481 billion** during the period, and cash flow hedges recognized a loss of **HKD 175 million** during the period[139](index=139&type=chunk) [Consolidated Statement of Financial Position](index=46&type=section&id=Condensed%20Interim%20Financial%20Statements_Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2023, Swire Pacific's total assets were **HKD 451.83 billion**, comprising **HKD 397.45 billion** in non-current assets and **HKD 54.38 billion** in current assets, while total liabilities amounted to **HKD 138.897 billion**, with **HKD 46.29 billion** in current liabilities and **HKD 92.607 billion** in non-current liabilities, resulting in net assets of **HKD 312.933 billion**, and equity attributable to company shareholders of **HKD 256.386 billion** Consolidated Statement of Financial Position Summary (As at June 30, 2023) | Indicator | As at June 30, 2023 (HKD million) | As at December 31, 2022 (HKD million) | | :--- | :--- | :--- | | Non-current assets | 397,450 | 394,027 | | Current assets | 54,380 | 40,739 | | **Total Assets** | **451,830** | **434,766** | | Current liabilities | 46,290 | 41,532 | | Non-current liabilities | 92,607 | 77,298 | | **Total Liabilities** | **138,897** | **118,830** | | **Net Assets** | **312,933** | **315,936** | | Equity attributable to company shareholders | 256,386 | 258,456 | | Non-controlling interests | 56,547 | 57,480 | | **Total Equity** | **312,933** | **315,936** | - The carrying amount of investment properties was **HKD 283.963 billion**, accounting for **71.4%** of non-current assets[140](index=140&type=chunk) - Bank balances and short-term deposits amounted to **HKD 13.44 billion**[141](index=141&type=chunk) [Consolidated Statement of Cash Flows](index=47&type=section&id=Condensed%20Interim%20Financial%20Statements_Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2023, Swire Pacific's net cash generated from operating activities was **HKD 5.153 billion**, while net cash used in investing activities amounted to **HKD 8.646 billion**, primarily for additions to investment properties and purchases of property, plant and equipment, and net cash generated from financing activities was **HKD 4.126 billion**, mainly from drawdowns and refinancing of borrowings, with cash and cash equivalents at the end of the period totaling **HKD 11.117 billion** Consolidated Statement of Cash Flows Summary (For the Six Months Ended June 30, 2023) | Indicator | 2023 (HKD million) | 2022 (HKD million) | | :--- | :--- | :--- | | Net cash generated from operating activities | 5,153 | 4,261 | | Net cash used in investing activities | (8,646) | (6,504) | | Net cash outflow before financing | (3,493) | (2,243) | | Net cash generated from/(used in) financing activities | 4,126 | (6,922) | | Increase/(decrease) in cash and cash equivalents | 633 | (9,165) | | Cash and cash equivalents at end of period | 11,117 | 12,862 | - Net cash used in investing activities was primarily for the purchase of property, plant and equipment and right-of-use assets (**HKD 1.721 billion**) and additions to investment properties (**HKD 1.332 billion**)[142](index=142&type=chunk) - Net cash generated from financing activities mainly came from drawdowns and refinancing of borrowings (**HKD 13.508 billion**), partially offset by repayment of borrowings and bonds (**HKD 4.556 billion**) and dividends paid (**HKD 3.697 billion**)[142](index=142&type=chunk) [Consolidated Statement of Changes in Equity](index=48&type=section&id=Condensed%20Interim%20Financial%20Statements_Consolidated%20Statement%20of%20Changes%20in%20Equity) As at June 30, 2023, Swire Pacific's share capital was **HKD 1.294 billion**, with equity attributable to company shareholders decreasing from **HKD 258.456 billion** at the beginning of the year to **HKD 256.386 billion**, primarily due to the combined effect of increased profit for the period, other comprehensive losses, share repurchases, and dividend payments, while non-controlling interests decreased from **HKD 57.48 billion** to **HKD 56.547 billion** Consolidated Statement of Changes in Equity Summary (For the Six Months Ended June 30, 2023) | Indicator | Balance as at January 1, 2023 (HKD million) | Balance as at June 30, 2023 (HKD million) | | :--- | :--- | :--- | | Share capital | 1,294 | 1,294 | | Retained earnings attributable to company shareholders | 255,167 | 256,039 | | Other reserves attributable to company shareholders | 1,995 | (947) | | **Total Equity attributable to company shareholders** | **258,456** | **256,386** | | Non-controlling interests | 57,480 | 56,547 | | **Total Equity** | **315,936** | **312,933** | - Profit for the period was **HKD 4.221 billion**, and other comprehensive loss was **HKD 2.942 billion**[143](index=143&type=chunk) - During the period, **HKD 680 million** was paid for share repurchases, and **HKD 2.675 billion** was paid for dividends[143](index=143&type=chunk) Notes to the Condensed Interim Financial Statements This section provides detailed notes on segment information, accounting policies, financial risk management, revenue, expenses, taxation, dividends, earnings per share, and asset movements [Segment Information](index=49&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Segment%20Information) Swire Pacific's business is segmented into Property, Beverages, Aviation, and Trading & Industrial, with the Head Office also considered a reportable segment, and for H1 2023, the Property division reported external revenue of **HKD 7.276 billion** and operating profit of **HKD 2.871 billion**, Beverages **HKD 30.445 billion** and **HKD 2.014 billion**, Aviation **HKD 8.464 billion** and **HKD 175 million**, and Trading & Industrial **HKD 5.355 billion** and **HKD 245 million**, with total Group assets at **HKD 451.83 billion** and total liabilities at **HKD 138.897 billion** - The Group's business is segmented into Property, Beverages, Aviation, and Trading & Industrial divisions, with the Head Office also considered a reportable segment[161](index=161&type=chunk) 2023 H1 External Revenue and Operating Profit by Division | Division | External Revenue (HKD million) | Operating Profit (HKD million) | | :--- | :--- | :--- | | Property | 7,276 | 2,871 | | Beverages | 30,445 | 2,014 | | Aviation | 8,464 | 175 | | Trading & Industrial | 5,355 | 245 | | Head Office, Healthcare and Others | 4 | (226) | | **Total** | **51,544** | **5,079** | Group Total Assets Analysis (As at June 30, 2023) | Division | Segment Assets (HKD million) | Joint Ventures (HKD million) | Associates (HKD million) | Bank Deposits (HKD million) | Total Assets (HKD million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property | 307,719 | 33,580 | 535 | 4,247 | 346,081 | | Beverages | 45,822 | 1,072 | 534 | 4,732 | 52,160 | | Aviation | 16,419 | 4,757 | 20,349 | 2,631 | 44,156 | | Trading & Industrial | 4,416 | 43 | - | 640 | 5,099 | | Head Office, Healthcare and Others | 1,101 | - | 2,043 | 1,190 | 4,334 | | **Total** | **375,477** | **39,452** | **23,461** | **13,440** | **451,830** | Group Total Liabilities and Non-controlling Interests Analysis (As at June 30, 2023) | Division | Segment Liabilities (HKD million) | External Borrowings (HKD million) | Lease Liabilities (HKD million) | Total Liabilities (HKD million) | Non-controlling Interests (HKD million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property | 9,938 | 33,098 | 653 | 47,472 | 52,476 | | Beverages | 19,435 | 88 | 653 | 27,212 | 433 | | Aviation | 4,284 | 42 | 2,552 | 9,534 | 1,784 | | Trading & Industrial | 1,770 | 92 | 1,099 | 2,985 | - | | Head Office, Healthcare and Others | 1,091 | 47,025 | - | 41,292 | - | | **Total** | **36,518** | **80,355** **4,957** | **138,897** | **56,547** | [Basis of Preparation](index=57&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Basis%20of%20Preparation) The condensed interim financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and the HKEX Listing Rules, using consistent accounting policies and methods as the 2022 annual financial statements, except for certain revised standards adopted from January 1, 2023, which had no significant impact on the Group's consolidated financial statements or accounting policies, and the Group has retrospectively applied accounting policy changes due to "Lessor Forgiveness of Lease Payments" and restated comparative figures for H1 2022 - The condensed interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the Listing Rules of The Stock Exchange of Hong Kong Limited[162](index=162&type=chunk) - The accounting policies and methods of computation used are consistent with those in the 2022 annual financial statements, except for certain revised standards adopted from January 1, 2023, which had no significant impact on the Group's consolidated financial statements or accounting policies[162](index=162&type=chunk)[163](index=163&type=chunk) - The Group has retrospectively applied the accounting policy changes due to "Lessor Forgiveness of Lease Payments" and restated the comparative figures for H1 2022[164](index=164&type=chunk) [Financial Risk Management](index=58&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Financial%20Risk%20Management) Swire Pacific is exposed to financial risks arising from interest rates, currency, credit, and liquidity in its normal business operations, and while the condensed interim financial statements do not include all financial risk management information and disclosures required by annual financial statements, the Group's financial risk management framework, policies, and procedures have not changed since year-end - The Group is exposed to financial risks arising from interest rates, currency, credit, and liquidity in its normal business operations[166](index=166&type=chunk) - The condensed interim financial statements do not include all financial risk management information and disclosures required by annual financial statements, but the Group's financial risk management framework, policies, and procedures have not changed since year-end[166](index=166&type=chunk) [Revenue](index=58&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Revenue) For the six months ended June 30, 2023, Swire Pacific's total revenue from continuing operations was **HKD 51.544 billion**, including gross rental income from investment properties of **HKD 6.656 billion**, revenue from sales of goods of **HKD 36.078 billion**, and revenue from aircraft and engine maintenance services of **HKD 7.622 billion** Revenue from Continuing Operations (For the Six Months Ended June 30, 2023) | Revenue Source | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Gross rental income from investment properties | 6,656 | 6,193 | | Property sales | 89 | 383 | | Hotels | 476 | 262 | | Sales of goods | 36,078 | 30,908 | | Aircraft and engine maintenance services | 7,622 | 5,883 | | Provision of other services | 623 | 655 | | **Total** | **51,544** | **44,284** | [Net Other (Losses)/Gains](index=59&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Net%20Other%20(Losses)%2FGains) For the six months ended June 30, 2023, Swire Pacific recorded a net other loss of **HKD 104 million**, compared to a net gain of **HKD 103 million** in the prior year, primarily driven by a **HKD 551 million gain** from the acquisition of an interest in a joint venture, but offset by a **HKD 411 million loss** from fair value changes of assets classified as held for sale, a net exchange loss of **HKD 79 million**, and a **HKD 239 million provision** for amounts due from a joint venture and other payables Net Other (Losses)/Gains (For the Six Months Ended June 30, 2023) | Item | 2023 (HKD million) | 2022 (HKD million) | | :--- | :--- | :--- | | Gain arising from acquisition of an interest in a joint venture | 551 | - | | Loss on disposal of property, plant and equipment | (18) | (3) | | Fair value changes of assets classified as held for sale | (411) | 49 | | Net exchange (loss)/gain | (79) | 159 | | Fair value loss on cross currency swaps transferred from cash flow hedge reserve | (99) | (82) | | Reversal of impairment losses recognised/(impairment losses) (property, plant and equipment) | 4 | (20) | | Reversal of impairment losses recognised/(impairment losses) (intangible assets) | (3) | (369) | | Provision for amounts due from a joint venture and other payables | (239) | - | | Government grants | 70 | 180 | | **Total** | **(104)** | **103** | [Expenses by Nature](index=60&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Expenses%20by%20Nature) For the six months ended June 30, 2023, Swire Pacific's total cost of sales, distribution costs, administrative expenses, and other operating expenses amounted to **HKD 45.031 billion**, including cost of goods sold of **HKD 24.07 billion**, staff costs of **HKD 9.754 billion**, and depreciation of property, plant and equipment of **HKD 1.536 billion** Expenses by Nature (For the Six Months Ended June 30, 2023) | Expense Item | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Direct lease expenses relating to investment properties | 1,483 | 1,382 | | Cost of goods sold | 24,070 | 20,380 | | Write-down of inventories and work-in-progress | 67 | 58 | | Impairment losses on trade receivables | 22 | 7 | | Depreciation of property, plant and equipment | 1,536 | 1,324 | | Depreciation of right-of-use assets | 483 | 414 | | Amortisation of intangible assets | 157 | 133 | | Staff costs | 9,754 | 8,907 | | Other lease expenses | 132 | 72 | | Other expenses | 7,233 | 6,014 | | **Total** | **45,031** | **38,793** | - Direct lease expenses relating to investment properties include impairment losses of **HKD 13 million** related to expected credit losses on waived operating lease receivables[169](index=169&type=chunk) [Net Finance Expenses](index=60&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Net%20Finance%20Expenses) For the six months ended June 30, 2023, Swire Pacific's net finance expenses amounted to **HKD 1.057 billion**, including interest expenses on bank borrowings and overdrafts of **HKD 700 million**, other borrowings and bonds of **HKD 719 million**, and lease liabilities of **HKD 102 million**, partially offset by capitalized interest of **HKD 340 million** and interest income of **HKD 226 million** Net Finance Expenses (For the Six Months Ended June 30, 2023) | Item | 2023 (HKD million) | 2022 (HKD million) | | :--- | :--- | :--- | | Interest expense on bank borrowings and overdrafts | 700 | 72 | | Interest expense on other borrowings and bonds | 719 | 807 | | Fair value (gain)/loss on derivative instruments | (23) | (14) | | Amortisation of borrowing costs | 52 | 44 | | Interest expense on lease liabilities | 102 | 93 | | Other finance costs | 66 | 65 | | Capitalised (investment properties and properties held for sale) | (340) | (274) | | Less: Interest income | (226) | (133) | | **Net finance expenses** | **1,057** | **683** | [Taxation](index=61&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Taxation) For the six months ended June 30, 2023, Swire Pacific's total tax expense was **HKD 1.649 billion**, comprising current tax of **HKD 1.373 billion** (including Hong Kong profits tax of **HKD 291 million** and overseas tax of **HKD 1.073 billion**) and deferred tax expense of **HKD 276 million**, mainly from fair value changes of investment properties and the origination and reversal of temporary differences, with the Group's share of tax expense from joint ventures and associates being **HKD 195 million** and **HKD 204 million**, respectively Tax Expense (For the Six Months Ended June 30, 2023) | Item | 2023 (HKD million) | 2022 (HKD million) (Restated) | | :--- | :--- | :--- | | Current tax (Hong Kong profits tax) | 291 | 280 | | Current tax (Overseas tax) | 1,073 | 886 | | Under/(over) provision in prior years | 9 | (2) | | Deferred tax (fair value changes of investment properties) | 88 | (34) | | Deferred tax (origination and reversal of temporary differences) | 188 | 203 | | **Total** | **1,649** | **1,330** | - The Group's share of tax expense from joint ventures was **HKD 195 million**, and from associates from continuing operations was **HKD 204 million**[172](index=172&type=chunk) [Dividends](index=61&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Dividends) Swire Pacific's Board of Directors has declared a first interim dividend for the year ending December 31, 2023, of **HKD 1.20 per 'A' share** and **HKD 0.24 per 'B' share**, totaling **HKD 1.73 billion**, an increase from the 2022 first interim dividend, with payment scheduled for October 13, 2023, to shareholders registered as at September 15, 2023 Declared First Interim Dividend | Share Class | Dividend per Share (HKD) | Total (HKD million) | | :--- | :--- | :--- | | 'A' shares | 1.20 | 1,730 | | 'B' shares | 0.24 | | | **Total** | | **1,730** | - Dividends will be paid on Friday, October 13, 2023, to shareholders registered on the register of members at the close of business on Friday, September 15, 2023[174](index=174&type=chunk) [Earnings Per Share (Basic and Diluted)](index=62&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements_Earnings%20Per%20Share%20(Basic%20and%20Diluted)) For the period en

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].