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 ...

N SWIRE PACIFIC 2022 ANNUAL RESULTS ANALYST BRIEFING 9TH MARCH 2023 | HONG KONG DISCLAIMER 2 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 pres ...

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

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

Swire Pacific Limited (OTCPK:SWRAY) Q4 2021 Earnings Conference Call March 10, 2022 4:45 AM ET Company Participants Guy Bradley – Chief Executive, Swire Properties Karen So – Managing Director of Swire Coca-Cola Ltd Martin Murray – Finance Director Donna Suen – Assistant Manager, Group Public Affairs Conference Call Participants Donna Suen May I now invite Guy, Martin, and Karen to take us through a detailed look at our results for 2021. Over to you guys, please. Guy Bradley Thank you, Donna. And thank you, ...

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