SWIRE PACIFIC A(HK:00019)2020-09-07 08:36Financial 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].