SWIRE PACIFIC A(00019)2025-04-07 08:34Financial Performance - The company's return on equity decreased to 1.6% in 2024 from 11.0% in 2023, a decline of 9.4 percentage points[14]. - The total profit attributable to shareholders fell to HKD 4,321 million in 2024, down 85% from HKD 28,853 million in 2023[14]. - Revenue decreased by 14% to HKD 81,969 million in 2024, compared to HKD 94,823 million in 2023[14]. - The basic earnings per share for 'A' shares dropped to HKD 3.06 in 2024, an 85% decrease from HKD 19.96 in 2023[14]. - The net debt increased by 28% to HKD 70,563 million in 2024, up from HKD 55,136 million in 2023[14]. - The consolidated profit attributable to shareholders for 2024 was HKD 43.21 billion, down from HKD 288.53 billion in 2023[16]. - The basic profit attributable to shareholders, excluding losses from fair value changes of investment properties, was HKD 10.47 billion in 2024, compared to HKD 36.17 billion in 2023[16]. - The recurring basic profit, excluding fair value changes and significant non-recurring items, was HKD 9.28 billion in 2024, down from HKD 10.44 billion in 2023[16]. - The operating cash flow from operations was HKD 12,580 million in 2024, a decrease of 13% from HKD 14,479 million in 2023[14]. - The company reported a total operating profit of HKD 1,716 million for 2024, significantly down from HKD 5,141 million in 2023, a decline of 66.66%[76]. - The basic profit attributable to shareholders for 2024 is HKD 6,713 million, compared to HKD 11,531 million in 2023, a decrease of 41.56%[77]. - The investment property fair value loss for 2024 is HKD 5,974 million, compared to HKD 2,860 million in 2023, indicating a significant increase in losses[76]. - The recurring basic profit for 2024, excluding asset sale profits, was HKD 5.727 billion, down from HKD 5.942 billion in 2023[99]. - The rental income from the Hong Kong office property portfolio for 2024 was HKD 5.109 billion, a decrease of 7% compared to 2023, with a rental occupancy rate of 89% as of December 31, 2024[106]. Dividends and Share Buybacks - The company reported a 70% reduction in the 'A' share dividend to HKD 3.35 in 2024, down from HKD 11.32 in 2023[14]. - The board announced a second interim dividend of HKD 2.10 per 'A' share and HKD 0.42 per 'B' share, resulting in a total annual dividend of HKD 3.35 per 'A' share and HKD 0.67 per 'B' share, a 5% increase from 2023[29]. - The group plans to continue its share buyback program with a maximum amount of HKD 6 billion, having repurchased 50,091,000 'A' shares and 54,547,500 'B' shares in 2024[29]. Sustainability and Environmental Impact - The greenhouse gas emissions from direct business operations decreased by 11% to 645 thousand tons of CO2 equivalent in 2024[15]. - Swire Coca-Cola utilized 42% renewable energy in its major operations by the end of 2024, with all eight bottling plants in mainland China using 100% renewable energy[32]. - The group continues to focus on sustainable development through its SwireTHRIVE strategy, achieving recognition in various sustainability indices[31]. - The company aims to achieve its sustainability goals by 2030, integrating these objectives into its business planning and decision-making processes[189]. Business Expansion and Investments - The company aims to expand its business in healthcare, particularly in major urban areas in mainland China and Southeast Asia[13]. - Swire Properties has committed approximately 67% of its HKD 100 billion investment plan, with HKD 50 billion allocated for major retail-led projects in mainland China[19]. - The company is focusing on a HKD 100 billion investment plan, particularly in the Greater Bay Area, to enhance shareholder value by 2025[33]. - The company plans to expand its hotel management business into Tokyo, Japan, and several cities in mainland China, including Beijing, Shenzhen, Shanghai, and Xi'an[62]. - The company is also expanding its residential property transactions in Hong Kong, mainland China, Miami, and Southeast Asia[103]. Market Conditions and Outlook - The Hong Kong office market is expected to remain weak, but the company's properties like Taikoo Place and Taikoo Square are well-positioned for recovery[33]. - Retail sales growth in mainland China is anticipated to accelerate due to improved domestic demand and recent economic stimulus measures[33]. - The hotel business outlook in Hong Kong is cautiously optimistic, depending on the recovery of international and business travelers[169]. - The overall market sentiment for residential properties in Hong Kong has slightly improved due to interest rate cuts, indicating signs of slow recovery[86]. - The residential market in Hong Kong is seeing increased sales due to interest rate cuts, with expectations for improved demand in the medium to long term[168]. Operational Performance - The overall performance of Swire Coca-Cola remained robust in 2024 despite industry and economic challenges faced by Swire Properties[23]. - Swire Coca-Cola recorded a recurring profit of HKD 1.388 billion in 2024, down from HKD 2.394 billion in 2023, with a 20% increase in recurring profit when excluding the impact of the sale of US Swire Coca-Cola[25]. - The recurring profit from mainland China operations increased by 11% due to revenue growth and lower raw material costs[26]. - The company produced and distributed 41 beverage brands in its operating regions, while the U.S. Swire Coca-Cola managed 36 beverage brands with a population coverage of 31.5 million[176]. Acquisitions and Joint Ventures - Swire Coca-Cola agreed to acquire over 55.6% of ThaiNamthip Corporation for approximately THB 42.61 billion (about HKD 9.47 billion) in two phases, completing the first phase in February 2024[21]. - The group completed the acquisition of a controlling stake in Dada Healthcare in April 2024, marking its first major investment in the healthcare sector[28]. - Swire Properties increased its stake in Beijing Taikoo Li from 35% to 49.895% through a transaction valued at approximately RMB 8.91 billion and RMB 29.84 billion[105]. - The company completed the acquisition of the remaining 30% of LCCB's issued share capital by December 27, 2024, further consolidating its market position[175]. Property Development and Projects - Swire Properties is set to complete the redevelopment of Taikoo Place in November 2024, marking a significant milestone in its flagship commercial development[19]. - The total area of completed properties in Hong Kong is 13.4 million square feet, slightly up from 13.2 million square feet in 2023[74]. - The total area of the upcoming Xi'an Taikoo Li project is projected to be 2,896,119 square feet, pending approval[136]. - The total area of the Chengdu Taikoo Li shopping center is 1,314,237 square feet, with additional developments in the Lujiazui area totaling 1,539,252 square feet[135]. - The total area of the Beijing East Corner office project under development is 2,809,103 square feet[127]. Retail Performance - Retail sales in mainland China decreased by 7% in 2024, but increased by 55% compared to 2019 pre-pandemic levels[111]. - Total rental income from retail properties in mainland China increased by 7% to HKD 4.4889 billion in 2024, with a 4% increase excluding currency fluctuations[112]. - Beijing Sanlitun Taikoo Li recorded a record rental income increase of 12% in 2024, with a rental rate of 98% as of December 31, 2024[113]. - The retail property rental income in Hong Kong for 2024 was HKD 2.369 billion, down 3% from 2023, with overall retail sales in the Hong Kong market declining by 7%[108].