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

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

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

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

D SWIRE PACIFIC ２０２３ INTERIM RESULTS BRIEFING 10TH AUGUST 2023 | HONG KONG DISCLAIMER This document has been prepared by Swire Pacific Limited (the "Company", and together with its subsidiaries, the "Group") solely for information purposes and information in it has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correctness of the information or opinions presented h ...

Financial Data and Key Metrics Changes - The recurring underlying profit increased by 284% to HKD 4.9 billion compared to HKD 1.3 billion in the prior year [5][7] - Statutory profit rose to HKD 4.2 billion from HKD 1.9 billion last year [7] - Underlying profit adjusted for investment property valuation changes was HKD 5.6 billion versus HKD 1.75 billion [7] - The company proposed a special dividend of approximately HKD 11.7 billion, with a 4% increase in interim dividends [4][6] Business Line Data and Key Metrics Changes - Swire Properties reported a 6% increase in recurring underlying profit, driven by higher rental income and hotel recovery, despite a decline in carpark sales [9][17] - The beverage segment saw a 41% increase in recurring profit, with strong results from the U.S. and Chinese Mainland, and a significant contribution from Vietnam [25][26] - Aviation profits improved significantly, with Cathay Pacific reporting its first profit since 2019, although HAECO faced losses in its Cabin Solutions business [29][32] Market Data and Key Metrics Changes - The Chinese Mainland contributed 40% to total revenue growth, with rental income growing at a compound rate of 12% since 2014 [18] - Revenue in the Chinese Mainland increased by 6% on a local currency basis, while Hong Kong and Taiwan markets experienced double-digit revenue growth [26] - The U.S. operation's EBITDA increased by 45%, driven by revenue growth despite a slight decline in volume [24] Company Strategy and Development Direction - The company remains committed to executing strategic plans in core markets of Hong Kong, Chinese Mainland, and Southeast Asia [4] - A HKD 100 billion investment plan is underway, with 39% already committed [19] - The proposed sale of Swire Coca-Cola U.S.A. for HKD 30.4 billion aligns with the strategy to enhance shareholder value and strengthen the balance sheet [4][40] Management's Comments on Operating Environment and Future Outlook - Management expects the rebound seen in the first half to continue into the second half, primarily driven by aviation [35] - The company remains confident in its long-term investment strategy despite macroeconomic uncertainties [35] - The healthcare segment showed a revenue growth of 122% year-on-year, indicating positive recovery post-COVID [33] Other Important Information - The transaction for the sale of Swire Coca-Cola U.S.A. is expected to complete in the second half of 2023, pending shareholder approval [6][35] - The management services agreement will allow Swire Pacific to maintain a relationship with Coca-Cola while managing the U.S. Beverages business [38][41] Q&A Session Summary Question: Regarding the company's dividend policy and potential share buyback - The company aims for progressive mid-single-digit growth in dividends and will consider share buybacks depending on project developments and market conditions [49][52]

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

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

Swire Pacific Limited (OTCPK:SWRAY) Q4 2022 Earnings Conference Call March 9, 2023 4:45 AM ET Company Participants Guy Bradley - Chairman Martin Murray - Finance Director Conference Call Participants Simon Cheung - Goldman Sachs Evan Li - HSBC Unidentified Company Representative [Starts Abruptly] May we now invite Guy and Martin to take us through a detailed look at the results for 2022. Guy Bradley Thank you, and good evening, everybody, and welcome. For those of you that come and see us often, you'll reco ...