SWIRE PACIFIC A(00019)2024-09-05 08:33Financial Performance - The company's profit attributable to shareholders decreased by 7% to HKD 3,914 million for the six months ended June 30, 2024, compared to HKD 4,221 million in the same period last year[6]. - Revenue fell by 23% to HKD 39,563 million, down from HKD 51,544 million year-on-year[6]. - Operating profit decreased by 3% to HKD 4,945 million, compared to HKD 5,079 million in the previous year[6]. - The company's consolidated profit attributable to shareholders for the first half of 2024 was HKD 3.914 billion, compared to HKD 4.221 billion in the same period of 2023, reflecting a decrease of approximately 7.3%[8]. - The recurring basic profit, excluding changes in investment property values, was HKD 5.576 billion for the first half of 2024, slightly down from HKD 5.594 billion in the same period of 2023[8]. - The attributable profit for the first half of 2024 was HKD 1,795 million, down from HKD 2,222 million in the same period of 2023, representing a decrease of 19.2%[19]. - The total profit for the period was HKD 15,044 million, down from HKD 19,208 million, reflecting a decline of 21.3%[97]. - The net profit for the period was HKD 4,579 million, a decrease of 5.9% from HKD 4,867 million in the previous year[97]. Dividends and Earnings Per Share - Basic earnings per share for 'A' shares was HKD 3.90, a slight increase from HKD 3.86 in the previous year[6]. - The company declared an interim dividend of HKD 1.25 per 'A' share, up from HKD 1.20 in the previous year[6]. - The first interim dividend announced for 2024 is HKD 1.25 per 'A' share and HKD 0.25 per 'B' share, compared to HKD 1.20 and HKD 0.24 respectively in 2023[123]. - The total amount of the first interim dividend for 2024 is HKD 1,754 million, slightly up from HKD 1,730 million in 2023[124]. - The basic earnings attributable to shareholders for the six months ended June 30, 2024, were HKD 3,914 million, down from HKD 4,221 million in the same period of 2023, a decrease of 7.3%[125]. Debt and Financial Position - The net debt decreased by 5% to HKD 63,479 million, down from HKD 66,915 million[6]. - The capital net debt ratio (excluding lease liabilities) improved to 19.8%, down from 21.4%[6]. - The total borrowings and bonds as of June 30, 2024, amounted to HKD 80,225 million, an increase from HKD 69,218 million at the end of 2023[81]. - The weighted average debt maturity is 2.8 years, with a weighted average cost of debt at 4.0%[83]. - The total available committed financing as of June 30, 2024, is HKD 119.960 billion, with HKD 39.427 billion undrawn[85]. - The net debt-to-equity ratio is 19.8% as of June 30, 2024, compared to 21.4% in the previous year[89]. - The interest coverage ratio is 4.4 times, down from 4.8 times in the previous year[89]. Investment and Development - The company is committed to a ten-year investment plan of HKD 100 billion, with 65% of the funds allocated to property development projects in core markets as of August 2, 2024[8]. - The company signed an agreement in February 2024 to acquire over 50% of ThaiNamthip Corporation Ltd. for a total consideration of approximately THB 42.657 billion (approximately HKD 9.497 billion)[7]. - The new intelligent green production base in Guangdong, with a total investment of RMB 1.25 billion, officially commenced construction in May 2024, aiming to be the largest green intelligent diversified factory in the domestic market[7]. - The company is actively seeking opportunities to sell assets in the United States as part of its capital recycling strategy[30]. - The company plans to expand its market presence in Southeast Asia, with a revenue contribution of HKD 4,504 million from this region[105]. Sector Performance - The beverage division recorded a recurring profit of HKD 878 million in the first half of 2024, down from HKD 1.627 billion in the same period of 2023, primarily due to the sale of American Swire Coca-Cola[10]. - The property division's recurring basic profit for the first half of 2024 was HKD 2.899 billion, a decrease of 9% compared to HKD 3.188 billion in the first half of 2023[9]. - The hotel business in Hong Kong is recovering slower than expected, while the performance of hotels in mainland China remains relatively stable[22]. - The retail property portfolio in Hong Kong is showing signs of weakness, with efforts to mitigate the negative impacts of changing consumer patterns[22]. - The airline division's passenger flights have reached 80% of pre-pandemic levels in the second quarter of 2024, with ongoing recruitment and training efforts to support network expansion[11]. Market Outlook and Strategy - The company is focusing on sustainable development and expanding its core sectors in Greater China and Southeast Asia[5]. - The company is exploring new business areas, including healthcare, to drive long-term growth[5]. - The group expects stable demand for base maintenance services in the second half of 2024, with ongoing recovery in field maintenance work[13]. - The company anticipates retail demand in mainland China to remain robust despite challenges in the Hong Kong market[13]. - The group aims to reduce carbon intensity by 12% from 2019 levels by 2030, alongside a goal of achieving net-zero carbon emissions by 2050[13].