SWIRE PACIFIC A(00019)2024-03-14 04:00Financial 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].