太古股份公司A(00019) - 2025 - 中期业绩

Performance Summary The company's reported profit attributable to shareholders significantly declined, while underlying and recurring underlying profits remained relatively stable, reflecting core business resilience Summary of Financial Performance for H1 2025 | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 45.774 billion | HKD 39.563 billion | +16% | | Operating Profit | HKD 1.861 billion | HKD 4.945 billion | -62% | | Profit Attributable to Company Shareholders (as per financial statements) | HKD 0.815 billion | HKD 3.914 billion | -79% | | Underlying Profit | HKD 5.476 billion | HKD 5.576 billion | -2% | | Recurring Underlying Profit | HKD 4.712 billion | HKD 4.762 billion | -1% | | Cash from Operations | HKD 8.438 billion | HKD 5.307 billion | +59% | | Net Debt | HKD 71.337 billion | HKD 63.479 billion | +12% | | Net Debt to Capital Ratio | 22.7% | 19.8% | +2.9 percentage points | | Dividend Per Share ('A' Shares) | HKD 1.30 | HKD 1.25 | +4% | - Profit attributable to company shareholders significantly decreased by 79%, primarily due to an expanded fair value loss on investment properties[10] - However, underlying profit and recurring underlying profit, which better reflect core operating performance, only slightly decreased by 2% and 1% respectively, indicating the Group's core business performance remained relatively stable[10][12] Chairman's Statement The Group's overall business performance in H1 2025 was stable, with underlying profit attributable to shareholders slightly down Overall Performance The Group's overall business performance in H1 2025 was stable, with underlying profit attributable to shareholders at HKD 5.476 billion, a slight 2% year-on-year decrease; the Aviation Division performed well, Property benefited from asset sales, while Beverages faced challenges Profit Overview for H1 2025 | Profit Type | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Underlying Profit Attributable to Shareholders | 5.476 billion | -2% | | Recurring Underlying Profit | 4.712 billion | -1% | | Consolidated Profit Attributable to Shareholders | 0.815 billion | -79% | - The fair value loss on investment properties expanded to HKD 4.664 billion in the reporting period (compared to HKD 0.877 billion in the prior period), which was the primary reason for the significant decrease in consolidated profit attributable to shareholders[12] - This change is non-cash in nature and does not affect cash flow or underlying profit[12] Strategic Developments The Group continues to advance strategic initiatives in core markets across Hong Kong, Mainland China, and Southeast Asia - Swire Properties' HKD 100 billion investment plan is progressing well, with 67% of funds already deployed, focusing on Hong Kong, Mainland China, and Southeast Asia markets[14] - Swire Properties completed the sale of its retail and car park interests in Brickell City Centre, Miami, USA, with proceeds supporting its HKD 100 billion investment plan[16] - Swire Coca-Cola proposed a spin-off and separate listing of its Thailand business (ThaiNamthip) and submitted an application in May 2025 for listing on the Stock Exchange of Thailand[17] - Cathay Group acquired an additional 14 Boeing 777-9 aircraft, bringing its total investment to well over HKD 100 billion, to strengthen Hong Kong's position as an international aviation hub[18] Business Performance Business unit performance varied, with Property's recurring underlying profit slightly down, Beverages' recurring profit declining, and Aviation showing strong performance - Property Division: Recurring underlying profit was HKD 2.829 billion, a 2% year-on-year decrease, primarily due to reduced office rental income in Hong Kong[19] - Beverages Division: Recurring profit was HKD 0.861 billion, mainly impacted by weak consumer sentiment and new expenses from capacity enhancement projects in Vietnam and Taiwan[20] - Aviation Division: Cathay Group's profit was HKD 3.651 billion, showing stable performance; HAECO Group's recurring profit increased to HKD 0.561 billion, demonstrating strong performance[22] Financial Strength and Shareholder Returns The Group maintains a robust financial position with HKD 52.6 billion in available liquidity and a net debt to capital ratio of 22.7% Financial Position as of June 30, 2025 | Indicator | Value | | :--- | :--- | | Available Liquidity | HKD 52.6 billion | | Net Debt to Capital Ratio | 22.7% | | Weighted Average Cost of Debt | 3.7% (lower than end of 2024) | - A first interim dividend of HKD 1.30 per 'A' share and HKD 0.26 per 'B' share was declared, representing a 4% year-on-year increase[23] - The HKD 6 billion share repurchase program has been terminated, with HKD 1.842 billion in shares repurchased in H1, bringing the total repurchased under the program to HKD 5.9 billion[24] Outlook The Group anticipates varying opportunities and challenges across its business segments in the future - Swire Properties: The Hong Kong office market is expected to remain weak, but the Mainland China retail market is projected to gradually accelerate development[26] - Swire Coca-Cola: Weak domestic consumption in Mainland China poses challenges, and some Southeast Asian markets (e.g., Thailand) also face economic and policy pressures[26] - Cathay Group and HAECO Group: Cathay will continue to invest in fleet expansion, while demand for HAECO's base maintenance and engine overhaul services is expected to remain stable[27] Business Review This section provides a detailed review of the performance of the Group's various business divisions Property Division The Property Division's attributable underlying profit increased to HKD 3.662 billion in H1, boosted by a one-off gain from the sale of Brickell City Centre interests, while recurring underlying profit slightly declined due to a weak Hong Kong office market Property Division H1 2025 Results | Indicator | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue | 8,723 | +20% | | Total Operating Profit | 367 | -89% | | Profit/(Loss) Attributable to Swire Pacific | (999) | Turned from profit to loss | | Underlying Profit Attributable to Swire Pacific | 3,662 | +17% | | Recurring Underlying Profit Attributable to Swire Pacific | 2,829 | -2% | - The increase in attributable underlying profit primarily stemmed from the gain on the sale of Brickell City Centre shopping mall and related land in the USA[39] - The HKD 100 billion investment plan has committed approximately HKD 67 billion, with key projects including Hyde Park in Hong Kong, Taikoo Li Xi'an, and Taikoo Source Lujiazui in Shanghai[42] Investment Properties Investment property performance varied, with Hong Kong office and retail properties facing challenges, while Mainland China retail properties showed stable performance - Hong Kong office portfolio rental income totaled HKD 2.455 billion, a 5% year-on-year decrease; the office portfolio occupancy rate was 88% at period-end[48] - Hong Kong retail property portfolio rental income totaled HKD 1.169 billion, a 2% year-on-year decrease; retail sales at Pacific Place and Cityplaza increased by 1% and 2% respectively[49] - Mainland China retail property rental income increased by 2% to HKD 2.272 billion; retail sales at Taikoo Li Sanlitun in Beijing grew by 7%, and HKRI Taikoo Hui in Shanghai grew by 14%[56][57][59] Hotels Hotel business performance was mixed, with slower recovery in Hong Kong and varied results in Mainland China, while US-managed hotels performed strongly - Hotels managed by Swire Properties (including restaurants and hotel management offices) recorded a pre-depreciation operating profit of HKD 25 million in H1 2025, consistent with H1 2024[72] - Swire Hotels is expanding its footprint, with plans to open five new hotels in Tokyo, Japan, and Beijing, Shenzhen, Shanghai, and Xi'an in Mainland China[72] Property Trading Property trading operations are active across Hong Kong, Mainland China, and Southeast Asia - In Hong Kong, 278 out of 432 units at the "The Southside" project in Wong Chuk Hang were sold as of August 1, 2025[76] - In Shanghai, Mainland China, 105 out of 107 units across two batches of "Taikoo Source Lujiazui Residences" were pre-sold as of August 1, 2025, with cumulative sales reaching RMB 5.93 billion[78][43] Beverages Division Swire Coca-Cola's recurring attributable profit for H1 2025 slightly decreased by 2% to HKD 0.861 billion, impacted by weak consumer momentum and new expenses from capacity enhancement projects, while total revenue significantly increased by 25% due to the acquisition of the Thailand business Beverages Division H1 2025 Results | Indicator | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 21,515 | +25% | | EBITDA | 2,525 | +16% | | Attributable Profit (excluding non-recurring items) | 861 | -2% | | Attributable Profit (including non-recurring items) | 803 | -9% | - Total revenue (including Swire Coca-Cola Shanghai Shenmei) increased by 25%, and sales volume increased by 20%, primarily due to the consolidation of TNCC (Thailand business) since October 2024[95] - By region, Mainland China business profit grew by 8%, while Hong Kong, Taiwan, Vietnam, and Cambodia businesses all recorded profit declines[89][98][101][103][106] Mainland China Mainland China operations recorded an attributable profit of HKD 0.588 billion, an 8% year-on-year increase, driven by a 3% revenue growth and 1% sales volume increase in local currency terms - Attributable profit was HKD 0.588 billion, an 8% year-on-year increase[98] - Total sales volume increased by 1%, and revenue in local currency terms increased by 3%[98][99] Hong Kong, Taiwan, Southeast Asia Hong Kong, Taiwan, and Southeast Asian markets faced challenges, with profit declines in Hong Kong, Taiwan, Vietnam, and Cambodia due to various factors including lower sales, production facility upgrades, and currency depreciation - Hong Kong: Attributable profit decreased by 15% to HKD 61 million[101] - Taiwan: Attributable profit decreased by 26% to HKD 43 million[103] - Vietnam and Cambodia: Attributable profit significantly decreased by 31% to HKD 113 million[106] - Thailand and Laos: Attributable profit, excluding non-recurring items, was HKD 105 million, a 13% year-on-year decrease[108] Aviation Division The Aviation Division recorded an attributable profit of HKD 2.233 billion in H1 2025, a 7% year-on-year increase, driven by stable performance from Cathay Group and strong growth from HAECO Group due to increased maintenance demand Aviation Division H1 2025 Results | Segment | Attributable Profit (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | Cathay Group | 1,642 | +1% | | HAECO Group | 599 | 0% | | Total Aviation Division | 2,233 | +7% | Cathay Group Cathay Group delivered stable performance in H1, recording a profit of HKD 3.651 billion, driven by a 14% increase in Cathay Pacific's passenger revenue and a 28% rise in passenger numbers - Cathay Pacific's passenger revenue was HKD 34.208 billion, a 14.0% year-on-year increase; Revenue Passenger Kilometers (RPK) increased by 30.0%[115][119] - Cathay Cargo revenue was HKD 11.141 billion, a 2.2% year-on-year increase; cargo carried increased by 11.4%[115][121] - As of June 30, 2025, Cathay Group's fleet totaled 234 aircraft, with an additional 93 aircraft on order[124][125] Hong Kong Aircraft Engineering Company (HAECO) Group HAECO Group demonstrated strong performance in H1, with recurring attributable profit significantly increasing to HKD 0.561 billion, driven by increased demand for base maintenance and engine overhaul services HAECO Group H1 2025 Results | Indicator | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue | 11,201 | +7% | | Attributable Profit (excluding non-recurring items) | 561 | +40% | | Attributable Profit (including non-recurring items) | 599 | 0% | - Base maintenance services recorded 5.26 million man-hours sold, a 6% year-on-year increase[134] - Engine business attributable profit was HKD 375 million, a 9% year-on-year increase, primarily driven by strong demand for engine overhaul services[141] Healthcare The Healthcare business remains in its early development stage, recording an attributable loss of HKD 0.117 billion in H1 2025, a narrowing from the HKD 0.132 billion loss in the prior period - In H1 2025, the Healthcare business recorded an attributable loss of HKD 117 million, a narrowing from the HKD 132 million loss in the prior period[151] - The Group has invested HKD 3.1 billion in the healthcare sector (including committed investments) and is actively seeking expansion opportunities in Mainland China and Southeast Asia[152] Trading and Industrial The Trading and Industrial business recorded an attributable profit of HKD 41 million in H1, a significant 73% decrease from HKD 152 million in the prior period Trading and Industrial Division H1 2025 Results | Segment | Attributable Profit/(Loss) (HKD million) | Prior Period (HKD million) | | :--- | :--- | :--- | | Swire Resources | 17 | 47 | | Swire Motors | 37 | 86 | | Swire Foods | (16) | 5 | | Swire Waste Management | 7 | 22 | | Total | 41 | 152 | Financial Review This section provides a comprehensive review of the Group's financial performance and position Underlying Profit and Recurring Underlying Profit This section reconciles profit as reported in the financial statements with underlying profit and recurring underlying profit, showing that recurring underlying profit remained largely stable year-on-year Reconciliation of Profit Attributable to Company Shareholders to Underlying Profit (H1 2025) | Item | Amount (HKD million) | | :--- | :--- | | Profit Attributable to Company Shareholders | 815 | | Add: Fair value loss on investment properties | 4,674 | | Add: Realized fair value gain on disposal of investment property interests | 1,001 | | Less: Fair value changes attributable to non-controlling interests, etc. | (944) | | Other adjustments | (70) | | Underlying Profit Attributable to Company Shareholders | 5,476 | Recurring Underlying Profit by Division (H1 2025) | Division | Amount (HKD million) | | :--- | :--- | | Property | 2,829 | | Beverages | 861 | | Aviation | 2,195 | | Trading and Industrial | 41 | | Head Office, Healthcare and Other | (1,214) | | Total Recurring Underlying Profit | 4,712 | Financing This section details the Group's financing activities, cash flow, and debt position Cash Flow and Debt Position The Group's cash flow from operations significantly increased by 59% to HKD 8.438 billion, with net cash inflow before financing of HKD 6.161 billion, while net debt increased to HKD 71.337 billion - Cash from operations was HKD 8.438 billion, a 59% year-on-year increase; cash before financing turned from a net outflow of HKD 1.965 billion in the prior period to a net inflow of HKD 6.161 billion[168] Debt Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Borrowings and Lease Liabilities | HKD 103.840 billion | HKD 96.612 billion | | Weighted Average Debt Maturity | 3.2 years | 2.7 years | | Weighted Average Cost of Debt | 3.7% | 4.0% | | Fixed Rate Debt Proportion | 66% | 64% | - If net debt of joint ventures and associates is included, the Group's net debt to capital ratio would increase from 22.7% to 28.8%[180] Condensed Interim Financial Statements This section presents the Group's condensed interim financial statements for the period Consolidated Income Statement For the six months ended June 30, 2025, the Group recorded revenue of HKD 45.774 billion, a 16% year-on-year increase, but operating profit significantly decreased to HKD 1.861 billion due to a HKD 3.884 billion fair value loss on investment properties, resulting in a 79% decrease in profit attributable to company shareholders Consolidated Statement of Comprehensive Income Profit for the period was HKD 0.971 billion, and after including other comprehensive income (primarily net exchange differences gain) of HKD 2.668 billion, total comprehensive income for the period was HKD 3.639 billion, with HKD 2.629 billion attributable to company shareholders Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were HKD 480.033 billion, total liabilities were HKD 165.943 billion, and net assets (total equity) were HKD 314.090 billion, a slight decrease from HKD 318.667 billion at the end of 2024, with HKD 257.884 billion attributable to company shareholders Consolidated Cash Flow Statement Net cash generated from operating activities was HKD 7.653 billion. Net cash used in investing activities was HKD 1.492 billion, primarily due to HKD 3.908 billion cash inflow from disposal of subsidiaries. Net cash used in financing activities was HKD 1.897 billion, mainly for share repurchases and dividend payments, resulting in an increase in cash and cash equivalents to HKD 24.598 billion at period-end Consolidated Statement of Changes in Equity As of January 1, 2025, equity attributable to company shareholders was HKD 258.300 billion, which decreased to HKD 257.884 billion as of June 30, 2025, after accounting for total comprehensive income of HKD 2.629 billion, share repurchases of HKD 1.847 billion, and dividends paid of HKD 2.849 billion Notes to the Condensed Interim Financial Statements This section provides detailed notes supporting the condensed interim financial statements Note 1: Segment Information This note details the revenue, operating profit, assets, and liabilities for the Group's major business segments, including Property, Beverages, Aviation, and Trading and Industrial Company Shareholders' Attributable Underlying Profit by Segment for H1 2025 | Segment | Amount (HKD million) | | :--- | :--- | | Property | 3,662 | | Beverages | 803 | | Aviation | 2,233 | | Trading and Industrial | 41 | | Head Office, Healthcare and Other | (1,263) | | Total | 5,476 | Note 10: Dividends The Board of Directors declared a first interim dividend for 2025 of HKD 1.30 per 'A' share and HKD 0.26 per 'B' share, totaling HKD 1.753 billion, payable on October 10, 2025 - A first interim dividend of HKD 1.30 per 'A' share and HKD 0.26 per 'B' share was declared[215][216] Note 13: Investment Properties As of June 30, 2025, the carrying value of the Group's investment properties was HKD 268.861 billion, a decrease from HKD 270.950 billion at the beginning of the year, primarily due to a net fair value loss of HKD 3.884 billion and the impact of disposals and transfers - A net fair value loss on investment properties of HKD 3.884 billion was recorded during the period[222] Note 25: Share Capital During the period, the company repurchased and cancelled 25,119,000 'A' shares and 15,402,500 'B' shares on the Stock Exchange under its share repurchase program, for a total consideration of HKD 1.842 billion - In H1, 25,119,000 'A' shares and 15,402,500 'B' shares were repurchased for a total of HKD 1.842 billion[241] Additional Information This section provides supplementary information relevant to the report Major Shareholders As of June 30, 2025, John Swire & Sons Limited held 56.85% of the company's 'A' shares and 74.83% of its 'B' shares, collectively owning 64.45% of the share capital and 70.97% of the voting rights - John Swire & Sons Limited holds 64.45% of the company's share capital and controls 70.97% of the voting rights[267]