Financial Performance - The company reported a profit attributable to shareholders of HKD 3,914 million for the six months ended June 30, 2024, a decrease of 7% compared to HKD 4,221 million in the same period of 2023[9]. - Revenue for the same period was HKD 39,563 million, down 23% from HKD 51,544 million year-on-year[9]. - The operating profit was HKD 4,945 million, reflecting a 3% decline from HKD 5,079 million in the previous year[9]. - In the first half of 2024, the attributable consolidated profit for shareholders was HKD 39.14 billion, down from HKD 42.21 billion in the same period of 2023, representing a decrease of approximately 6.5%[16]. - The recurring basic profit, excluding changes in investment property values, was HKD 55.76 billion, compared to HKD 55.94 billion in the first half of 2023, showing a slight decrease of about 0.3%[16]. - The attributable profit for the first half of 2024 was HKD 1,795 million, a decrease from HKD 2,222 million in the same period of 2023[40]. - The total attributable profit, excluding non-recurring items, for the first half of 2024 was HKD 878 million, compared to HKD 714 million in the same period of 2023[103]. - The attributable profit for the first half of 2024 from mainland China was HKD 543 million, a decrease of 12% compared to the same period in 2023, with local currency profit down by 7%[118]. Debt and Financial Position - The company’s net debt decreased by 5% to HKD 63,479 million from HKD 66,915 million in 2023[9]. - The net debt to equity ratio (excluding lease liabilities) improved to 19.8%, down from 21.4% in the previous year[9]. - The group has a robust financial position with available liquid funds of HKD 46.8 billion as of June 30, 2024, and a capital net debt ratio of 19.8%[26]. - The total borrowings and debt securities as of June 30, 2024, amounted to HKD 109.72 billion, with HKD 30.46 billion (27%) remaining undrawn[200]. - The company reported a net cash increase of HKD 3,741 million for the six months ended June 30, 2024, compared to HKD 633 million in the same period of 2023[198]. Investment and Development Plans - 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[13]. - The company plans to continue investing in core markets and is actively seeking opportunities in the Greater Bay Area, having signed a memorandum of understanding with the Shenzhen government[29]. - The company has committed approximately HKD 650 billion for planned investments, with HKD 110 billion allocated to Hong Kong and HKD 440 billion to mainland China[49]. - The investment plan includes HKD 300 billion for Hong Kong, HKD 500 billion for mainland China, and HKD 200 billion for residential sales projects[49]. - The company plans to increase the total floor area of retail-led developments in mainland China by 100%[50]. Sector Performance - The beverage sector showed stable performance, while the real estate sector performed well despite increasing adverse factors[12]. - The aviation sector significantly contributed to the company's performance, with Cathay Pacific achieving a profit of HKD 36.13 billion in the first half of 2024, down from HKD 42.68 billion in the same period of 2023, which included a special income of HKD 21 billion[20]. - Swire Properties reported a recurring basic profit of HKD 28.98 billion in the first half of 2024, a decrease of 9% from HKD 31.88 billion in the same period of 2023, attributed to increased financial expenses and reduced rental income from office properties[17]. - Swire Coca-Cola recorded a recurring profit of HKD 8.78 billion in the first half of 2024, down from HKD 16.27 billion in the same period of 2023, primarily due to the sale of Swire Coca-Cola USA[19]. Shareholder Returns - The company plans to enhance shareholder returns through regular dividends and a share buyback program set to complete in May 2025[13]. - The company announced an interim dividend of HKD 1.25 per 'A' share and HKD 0.25 per 'B' share, representing a 4% increase compared to the first interim dividend in 2023[24]. Market Outlook - The company remains confident in the business outlook across core markets despite market volatility and global uncertainties[12]. - The Hong Kong office market is expected to remain weak in the second half of 2024 due to soft market demand and oversupply[64]. - The retail market is expected to stabilize in the second half of 2024, with luxury brand retailers showing strong demand in Guangzhou and Chengdu[78]. - The overall sentiment in the office rental market remains negative due to economic uncertainty, with expectations of rental declines in major cities like Beijing and Shanghai[78]. Operational Highlights - Cathay Pacific's passenger flights reached 80% of pre-pandemic levels in the second quarter of 2024, reflecting a strong recovery in the aviation sector[20]. - The number of passengers carried increased by 36.4% to 10.66 million in the first half of 2024, compared to 7.816 million in the same period of 2023[139]. - The company completed 158 engine overhauls in the first half of 2024, up from 141 in the same period of 2023, reflecting strong demand for engine repair services[164]. - The company’s engine business recorded a profit of HKD 345 million in the first half of 2024, a 31% increase compared to the same period of 2023[163]. Challenges and Risks - The hotel business in Hong Kong is recovering slower than expected, while performance in mainland China remains relatively stable[48]. - The company anticipates continued challenges in mainland China due to sluggish local consumption, but stable raw material costs and effective cost management may alleviate profit pressures[127]. - Despite the Hong Kong government's removal of stamp duty measures in February 2024, the residential property market remains soft due to economic uncertainty and high interest rates[99].
太古股份公司B(00087) - 2024 - 中期财报