Company Operations - The company operates over 2,000 retail points in its shopping malls under the property division, with an estimated 70,000 people working in its office buildings[10]. - At the end of 2020, the beverage division distributed Coca-Cola products to a population of 741 million in Greater China and the United States, including 15 carbonated and 45 non-carbonated beverage brands[10]. - Cathay Pacific, along with its subsidiaries, operated a fleet of 239 aircraft by the end of 2020, connecting Hong Kong to 119 destinations across 35 countries[10]. - The company employed over 34,000 staff in Hong Kong and over 30,000 in mainland China, with a total global workforce exceeding 86,000[10]. - The marine services division operated a fleet of 61 vessels by the end of 2020, providing support services to the offshore energy industry[10]. - The group’s bakery business operated 546 stores in Southwest China by the end of 2020[10]. - The company has developed six retail-focused integrated projects in major cities in mainland China, including Beijing, Shanghai, Guangzhou, and Chengdu[10]. 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 -7.32 HKD from 6.00 HKD, while 'B' shares fell to -1.46 HKD from 1.20 HKD[12]. - Total revenue for the year was 80,032 million HKD, a decrease of 7% from 85,652 million HKD[12]. - Operating profit plummeted by 80% to 2,695 million HKD from 13,792 million HKD[12]. - The net cash inflow from operations increased by 18% to 15,124 million HKD from 12,817 million HKD[12]. - The net debt decreased by 17% to 38,900 million HKD from 46,688 million HKD[12]. - The total equity, including non-controlling interests, declined by 3% to 319,146 million HKD from 329,494 million HKD[12]. - The basic loss per share for 'A' shares was -2.64 HKD compared to a profit of 11.85 HKD in the previous year[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 regular basic loss for 2020 was HKD 609 million, a significant decline from a profit of HKD 7.221 billion in 2019[19]. - The capital debt ratio at the end of 2020 was 12.2%, down from 14.2% at the end of 2019, indicating a stable financial position[19]. - The company’s property portfolio value slightly decreased, contributing to a drop in equity return from 3.3% in 2019 to -4.1% in 2020[19]. - The aviation sector, particularly Cathay Pacific, faced severe challenges, resulting in a loss of HKD 21.6 billion for the year[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 recurring basic loss after excluding significant non-recurring items for 2020 was HKD 6.09 billion, while in 2019, it recorded a profit of HKD 72.21 billion[32]. - The real estate sector contributed the largest share of the company's performance, with recurring basic profit of HKD 58.34 billion in 2020, down from HKD 62.69 billion in 2019[32]. - The aviation sector recorded a loss of HKD 9.75 billion in 2020, compared to a profit of HKD 1.55 billion in 2019, significantly impacted by the COVID-19 pandemic[32]. - The company’s regular profit from the trading and industrial sector was HKD 1.2 billion in 2020, compared to HKD 4.1 billion in 2019[32]. - The company announced a second interim dividend of HKD 1.00 per 'A' share and HKD 0.20 per 'B' share for 2020[32]. Sustainability and Governance - The company is committed to sustainable development and long-term growth, focusing on creating stable dividend returns for shareholders[9]. - The company maintains a strong corporate governance standard and aims to enhance its brand and reputation[9]. - The company is a long-term investor, emphasizing holding controlling interests in businesses for sustained growth[9]. - Greenhouse gas emissions reduced by 57% to 8.4 million tons CO2 equivalent from 19.3 million tons[12]. - Energy consumption decreased by 58% to 112.1 million gigajoules from 264.3 million gigajoules[12]. - The company launched "SwireTHRIVE 2.0" in 2020, focusing on five priority areas including climate, water resources, waste, employees, and community[19]. Market Outlook and Challenges - The company anticipates regular losses in the first half of 2021 due to ongoing challenges from the COVID-19 pandemic[23]. - The company remains confident in its long-term development, supported by the vibrant economic growth in Mainland China and its solid financial position[23]. - The company expects a substantial increase in revenue from its U.S. operations in 2021[34]. - The company anticipates that the demand for high-end residential properties in Jakarta will remain stable due to urbanization and a growing middle class[34]. - The hotel business in Hong Kong is facing challenges, with recovery dependent on travel restrictions and vaccination progress[34]. - The company expects a moderate recovery in the office market in Guangzhou, Shanghai, and Beijing, but faces challenges due to new supply and weak demand[113]. - The company plans to invest heavily in capital expenditures despite the weak market conditions[34]. - The company plans to focus on investment opportunities in the Greater China region, with a total capital commitment of HKD 26.7 billion[19]. Retail and Property Performance - 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[50]. - The total area of completed properties was 22,681 thousand square feet, down from 22,950 thousand square feet in 2019[55]. - The total area of properties under development and awaiting development is 27,046 thousand square feet, an increase from 26,520 thousand square feet in 2019[55]. - The occupancy rate for Taikoo Place was 98% as of December 31, 2020, while the overall office portfolio was 96% leased[72][71]. - The occupancy rate for South Island Place was 87% as of December 31, 2020, with the company holding a 50% interest in this development[73]. - The rental income for the newly completed retail development in Shanghai, Qiantan Taikoo Li, is expected to begin trial operations in the second half of 2021[79]. - The company provided rental support to tenants during the pandemic, which was amortized over the remaining lease terms[74]. - The rental income from mainland China properties for 2020 was HKD 2.491 billion, an increase of 5% compared to 2019[78]. - The rental income for Guangzhou Taikoo Hui, Chengdu Ocean Taikoo Li, and Shanghai Xingye Taikoo Hui increased by 36%, 6%, and 15% respectively in 2020[78]. - The rental income for Beijing Yintai Center was HKD 358 million, a decrease of 6% from 2019[79]. - The occupancy rates for Guangzhou Taikoo Hui and Beijing Yintai Center were 95% and 70% respectively as of December 31, 2020[79]. - The company plans to expand the Yintai Center in Beijing, with a total gross floor area of 4.083 million square feet, expected to be completed in phases by the end of 2025 and 2027[69]. Aviation Sector Performance - The company experienced a significant decline in passenger revenue, which dropped to only 2% to 3% of pre-pandemic levels in 2020[32]. - The company received government support of HKD 26.89 billion related to the COVID-19 pandemic[32]. - The company’s operational environment in 2020 was extremely challenging, with a substantial reduction in passenger flights and cargo capacity[32]. - The average age of the fleet was 10.1 years, slightly down from 10.3 years in 2019, indicating a stable fleet management strategy[135]. - The company recorded a significant reduction in flight operations, with aircraft utilization dropping by 63.9% to 4.3 hours per day[135]. - The cargo revenue increased by 16.2% to HKD 24.573 billion, with cargo yield rising by 58.3% to HKD 2.96 per ton kilometer[135]. - The company implemented a capital restructuring plan amounting to HKD 39 billion in August 2020 to ensure operational continuity[137]. - 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]. - The company plans to modernize its fleet and enhance efficiency through the introduction of new aircraft models[142]. - The company has entered into agreements with Airbus and Boeing regarding the delivery schedules of new aircraft, indicating a strategic focus on fleet modernization[142]. Beverage Division Performance - The beverage division reported annual sales of 1.743 billion standard cases in 2020[172]. - The company aims to expand its product portfolio and enhance digitalization across its markets as part of its strategic goals[164]. - Total revenue increased by 2% to HKD 45,657 million, while sales volume decreased by 2% to 1.743 billion cases[177]. - Revenue from the mainland China segment was HKD 22,942 million, a 1% increase from HKD 22,087 million in 2019, while operating profit was HKD 1,041 million, up from HKD 856 million[174]. - The company experienced a decline in sales volume in Hong Kong by 12%, while Taiwan and the US saw revenue and sales volume increases of 9% and 7%, respectively[176]. - The energy drink segment saw a revenue increase of 24% in mainland China, indicating strong demand for premium beverage categories[184]. - The attributable profit for the U.S. business was HKD 797 million, a 45% increase after excluding non-recurring gains from the sale of a sales center in 2019[188]. - The company successfully launched new products and improved its product mix, leading to a 9% increase in soft drink revenue in Hong Kong[188].
太古股份公司B(00087) - 2020 - 年度财报