SWIRE PACIFIC A(HK:00019)2022-09-06 08:30Financial Performance - The company reported a profit attributable to shareholders of HKD 1,891 million for the six months ended June 30, 2022, compared to a loss of HKD 792 million in the same period last year[7]. - Basic earnings per share for 'A' shares increased by 38% to HKD 1.15, while 'B' shares reported HKD 0.23[7]. - Revenue for the period was HKD 44,596 million, reflecting a 5% decrease from HKD 46,738 million in the previous year[7]. - Operating profit reached HKD 6,760 million, a 42% increase from HKD 4,751 million year-on-year[7]. - The group recorded a basic profit of HKD 1.729 billion for the first half of 2022, an increase from HKD 1.256 billion in the same period of 2021, reflecting a significant recovery despite ongoing challenges[8]. - The group recorded a loss of HKD 22.36 billion in the first half of 2022, compared to a loss of HKD 12.54 billion in the same period of 2021[16]. - The recurring basic profit for the first half of 2022 was HKD 12.49 billion, an increase from HKD 7.86 billion in the same period of 2021[16]. - The company reported a net profit attributable to the company for the first half of 2022 was HKD 1,520 million, a decrease of 12% compared to the same period in 2021[55]. Cash Flow and Debt - The company achieved a net cash inflow from operations of HKD 6,147 million, down 42% from HKD 10,657 million in the previous year[7]. - The net debt amounted to HKD 43,911 million, a 12% increase from HKD 39,081 million[7]. - The capital net debt ratio (excluding lease liabilities) rose to 13.6%, up from 12.2% in the previous year[7]. - The net debt-to-equity ratio as of June 30, 2022, was 13.6%, with available liquid funds amounting to HKD 39.1 billion, allowing the company to execute long-term plans despite short-term market volatility[14]. - The company’s cash and cash equivalents decreased to HKD 13,590 million as of June 30, 2022, from HKD 22,894 million as of December 31, 2021[88]. - The company reported a net cash outflow of HKD 9,165 million for the six months ended June 30, 2022[86]. - The total borrowings and debt securities as of June 30, 2022, amounted to HKD 83,108 million, with HKD 25,464 million remaining undrawn[88]. Investment and Development - Swire Properties announced a HKD 100 billion investment plan, with 50% allocated to mainland China, focusing on expanding its property portfolio in the Greater Bay Area[8]. - The new Grade A office building at Taikoo Place is expected to add approximately 218,000 square feet of space to the property portfolio[8]. - Swire Properties is progressing with the development of its seventh integrated project in mainland China, Xi'an Taikoo Li, which is adjacent to a UNESCO World Heritage site[8]. - The company is involved in six residential development projects, three in Hong Kong and others in Indonesia and Vietnam, along with land reserves in Miami, USA[20]. - The total area under development and planned is 29,731,000 square feet, with 12,337,000 square feet in Hong Kong, 8,611,000 square feet in Mainland China, and 5,832,000 square feet in the United States[34]. Market Conditions and Outlook - The outlook for the hotel business remains challenging, with recovery dependent on the full resumption of cross-border travel and the easing of restrictions in mainland China, Hong Kong, and Taiwan[17]. - The demand for office space in Hong Kong is expected to remain weak in the second half of 2022, reflecting rising vacancy rates and increased new supply[17]. - The retail market in Hong Kong is showing signs of recovery, supported by the government's consumption voucher scheme and the release of pent-up local demand[17]. - The company anticipates passenger capacity to reach pre-pandemic levels by the end of the year, while cargo capacity is expected to reach 65% of pre-pandemic levels[12]. - The company is optimistic about medium to long-term prospects despite ongoing short-term challenges, particularly in the aviation sector[12]. Dividends and Shareholder Returns - The interim dividend was increased by 15% to HKD 1.15 per 'A' share and HKD 0.23 per 'B' share compared to the first interim dividend in 2021[8]. - The company paid dividends amounting to HKD 2,402 million during the period, an increase from HKD 1,502 million in the previous year[108]. Segment Performance - Swire Coca-Cola's attributable profit for the first half of 2022 was HKD 1.152 billion, a decrease of 22% compared to the same period in 2021, primarily due to the impact of COVID-19 and rising costs[10]. - The real estate division's recurring basic profit was HKD 2.971 billion, slightly lower than HKD 3.029 billion in the first half of 2021, demonstrating resilience amid challenging market conditions[11]. - The aviation sector's performance improved due to a reduction in losses, with cargo operations showing strong performance despite a slight decrease in load factor[16]. - The hotel business continued to suffer losses due to COVID-19 and related travel restrictions[29]. Financial Position and Assets - The total assets of the group amounted to HKD 428,341 million as of June 30, 2022, with property investments valued at HKD 317,102 million[112]. - The company's total liabilities decreased to HKD 67,849 million from HKD 63,872 million at the end of 2021, reflecting changes in both current and non-current liabilities[106]. - The net asset value stood at HKD 321,941 million as of June 30, 2022, down from HKD 324,168 million at the end of 2021[106]. - The company reported a significant foreign exchange loss of HKD 2,383 million during the period, compared to a gain of HKD 711 million in the previous year[105]. Strategic Initiatives - The company is focusing on sustainable development and exploring new business areas such as healthcare and sustainable food[6]. - The company plans to continue expanding its healthcare services, with the opening of Shenzhen New Wind and Harmony Hospital in May 2022[13]. - The company plans to invest at least HKD 20 billion in the healthcare sector by 2030, having already invested HKD 1.7 billion in private healthcare services in major urban areas of mainland China[77].