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].

2021 Interim Results Analyst Briefing 12th August 2021 | Hong Kong SWIRE PACIFIC Background 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 prese ...

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

Swire Pacific Limited (OTCPK:SWRAY) Q4 2020 Earnings Conference Call March 11, 2021 3:45 AM ET Company Participants Merlin Swire - Chairman Michelle Low - Finance Director Operator Good afternoon, everyone. Welcome to the live webcast of the Swire Pacific 2020 Final Results Analyst Briefing. We apologize that Mr. Merlin Swire, Chairman of Swire Pacific, is not physically present here today. He's self-isolating at home out of the abundance of caution as he has been in contact with the potential closed contac ...

2020 Annual Results Analyst Briefing 11th March 2021 | Hong Kong SWIRE PACIFIC Background 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 presen ...

Financial Performance - The company reported a loss attributable to shareholders of HKD 7,737 million for the six months ended June 30, 2020, a decrease of 197% compared to a profit of HKD 7,939 million in the same period last year[8]. - Basic loss per share for 'A' shares was HKD (5.15), down 197% from HKD 5.29 in the previous year[8]. - Revenue for the period was HKD 39,056 million, representing a 9% decrease from HKD 42,870 million in the prior year[8]. - Operating loss was HKD (1,670) million, a decline of 115% compared to an operating profit of HKD 10,866 million in the same period last year[8]. - The group reported a loss attributable to shareholders of HKD 7,737 million for the six months ended June 30, 2020, compared to a profit of HKD 7,939 million in the same period of 2019[120]. - The group’s total revenue for the six months ended June 30, 2020, was HKD 39,056 million, a decrease from HKD 42,870 million in the same period of 2019, representing a decline of approximately 8.5%[132]. Dividends - The company declared an interim dividend of HKD 0.70 per 'A' share, a decrease of 48% from HKD 1.35 in the previous year[8]. - The board declared an interim dividend of HKD 0.70 per 'A' share and HKD 0.14 per 'B' share, reflecting a reduction in dividends due to the challenging business environment[10]. - The board declared an interim dividend of HKD 0.70 per 'A' share and HKD 0.14 per 'B' share, totaling HKD 1.051 billion, a decrease from HKD 2.027 billion in the previous year[147]. Cash Flow and Debt - The net cash inflow from operations was HKD 5,176 million, an increase of 18% from HKD 4,368 million in the previous year[8]. - The net debt amounted to HKD 49,277 million, a slight increase of 1% from HKD 48,630 million[8]. - The company had total borrowings and debt securities of HKD 107,452 million as of June 30, 2020, with HKD 35,647 million remaining undrawn[106]. - The net cash generated from operating activities was HKD 3,158 million, up from HKD 2,917 million year-on-year, indicating a growth of 8.2%[123]. - The company’s total liabilities decreased to HKD 69,805 million from HKD 74,341 million, reflecting a reduction of 6.2%[122]. Impairments and Losses - The group recorded impairment and related expenses of HKD 24.65 billion in the first half of 2020, primarily related to 16 aircraft expected to be retired or returned[12]. - The company recorded a significant non-recurring item of impairment losses on property, plant, and equipment amounting to HKD 5,380 million[103]. - The loss from the revaluation of investment properties was HKD 2,743 million, while the deferred tax related to investment properties was HKD 68 million[102]. - The group recognized a net loss of HKD 3,951 million from other income/expenses for the six months ended June 30, 2020, compared to a net gain of HKD 1,192 million in the same period of 2019[140]. Sector Performance - Cathay Pacific recorded a loss of HKD 9.9 billion, with passenger revenue decreasing by 72% due to extensive travel restrictions caused by the COVID-19 pandemic[9]. - The trading and industrial segment experienced recurring losses, significantly impacted by the COVID-19 pandemic on Swire Resources[10]. - The beverage division anticipates revenue growth in mainland China in the second half of 2020, with growth rates expected to outpace sales volume[16]. - The marine services sector reported a loss of HKD 49.67 billion in the first half of 2020, compared to a loss of HKD 6.33 billion in the same period of 2019[82]. Market Outlook - The company anticipates a soft demand for office space in Hong Kong in the second half of 2020 due to economic weakness[14]. - The group anticipates that the travel industry will take years to recover to pre-crisis levels due to the unprecedented impact of the COVID-19 pandemic[43]. - The group is facing significant challenges due to the global health crisis, with the outlook remaining highly uncertain[43]. Operational Adjustments - The company plans to sell non-core assets to maintain financial health and capitalize on future opportunities[11]. - The company plans to optimize its operational scale and model in response to the current market outlook and cost structure[15]. - The company is in discussions with Xiamen authorities regarding relocating its facilities to the new airport, which is crucial for its operations[16]. Property and Investment - The property investment segment generated external revenue of HKD 6,121 million, with an operating profit of HKD 4,317 million, while the hotel segment reported an external revenue of HKD 274 million and an operating loss of HKD 197 million[125]. - The total rental income from investment properties was HKD 6,074 million for the six months ended June 30, 2020, compared to HKD 6,294 million in the same period of 2019, reflecting a decrease of about 3.5%[139]. - The total completed floor area owned by the group was 22,669 thousand square feet as of June 30, 2020[29]. Government Support - The group received government support of HKD 10.6 billion related to the COVID-19 pandemic[12].