SWIRE PACIFIC A(00019)2023-04-06 08:30Business Operations - The company reported a significant presence in the Greater China region, with over 78.2 million consumers reached through its beverage distribution, including 21 carbonated beverage brands[5]. - As of December 31, 2022, the airline group operated a fleet of 222 aircraft, providing services to 81 destinations across 30 countries and regions, with an additional 21 countries served through code-sharing agreements[5]. - The real estate division has become one of the largest commercial property owners and retail operators in Hong Kong, managing major projects like Taikoo Place and Cityplaza[5]. - The company is actively seeking investment opportunities in the private healthcare sector, particularly in major urban areas in mainland China and Southeast Asia[5]. - The beverage sector is a key focus, with plans to expand distribution and product offerings in the Greater China region and beyond[5]. - The company is expanding its Coca-Cola bottling operations into Southeast Asia through acquisitions in Cambodia and Vietnam[10]. - The company is acquiring a 50% stake in a luxury retail development project in Sanya, marking its first project in Hainan[10]. - The company is focusing on developing high-end residential properties and expanding in Hong Kong and mainland China markets[19]. - The company is focusing on consolidating its position as a high-end shopping and leisure destination in mainland China[38]. Financial Performance - The profit attributable to shareholders rose by 25% to HKD 4,195 million in 2022, compared to HKD 3,357 million in 2021[7]. - The basic earnings per share for 'A' shares increased by 25% to HKD 2.81 in 2022, up from HKD 2.24 in 2021[7]. - Revenue decreased by 1% to HKD 91,693 million in 2022, down from HKD 92,830 million in 2021[7]. - The net debt increased by 47% to HKD 56,759 million in 2022, compared to HKD 38,655 million in 2021[7]. - The company announced a 15% increase in the 'A' share dividend to HKD 3.00 in 2022, up from HKD 2.60 in 2021[7]. - The operating cash flow decreased by 22% to HKD 12,043 million in 2022, down from HKD 15,453 million in 2021[7]. - The company's consolidated profit attributable to shareholders for 2022 was HKD 4.19 billion, compared to HKD 3.35 billion in 2021, representing an increase of approximately 25.4%[12]. - The basic profit attributable to shareholders, excluding the value changes of investment properties, was HKD 4.74 billion in 2022, down from HKD 5.29 billion in 2021, indicating a decrease of about 10.4%[12]. - The recurring basic profit for 2022 was HKD 3.8 billion, a decrease from HKD 4.88 billion in 2021, reflecting a decline of approximately 22%[12]. - The company reported an EBITDA of HK$5.545 billion in 2022, down from HK$5.791 billion in 2021, indicating a decline of about 4.3%[65]. - Operating profit decreased to HK$3.274 billion in 2022 from HK$3.512 billion in 2021, reflecting a decline of approximately 6.8%[65]. - The net profit attributable to shareholders was HK$2.392 billion in 2022, compared to HK$2.549 billion in 2021, marking a decrease of around 6.2%[65]. Investment and Expansion - The company is expanding its property portfolio with a HKD 100 billion investment plan, having already allocated HKD 39 billion for new projects[10]. - The company announced a HKD 100 billion investment plan to be allocated over the next decade, with HKD 30 billion for Hong Kong projects, HKD 50 billion for mainland China, and HKD 20 billion for residential sales projects[30]. - As of March 7, 2023, the company had committed approximately HKD 39 billion of the planned investment, including HKD 17 billion in mainland China and HKD 11 billion in Hong Kong[30]. - The company is focusing on expanding its hotel management business through management agreements outside of Hong Kong[54]. - The company is actively hiring and training employees to develop digital capabilities and enhance workforce diversity[188]. Corporate Governance - The company is committed to high standards of corporate governance and sustainable development practices to enhance its brand and reputation[4]. - The board of directors is responsible for strategic leadership and oversight, ensuring maximum returns for shareholders while considering the interests of stakeholders[151]. - The company has adopted a self-developed corporate governance code, which is available on its website, reflecting its commitment to evolving governance practices[150]. - The board has established three main committees: Audit Committee, Remuneration Committee, and Nomination Committee, to assist in fulfilling its responsibilities[153]. - The company emphasizes the importance of high-quality products and services to ensure customer satisfaction and long-term sustainable growth[150]. - The company has established effective mechanisms for obtaining independent viewpoints and opinions, with annual reviews of the independence of non-executive directors[156]. - The company has implemented a continuous professional development program for all directors, ensuring they stay updated on relevant knowledge and skills[161]. Market Conditions and Challenges - The performance of the hotel business continued to reflect a challenging operating environment due to pandemic-related impacts[12]. - The company experienced a doubling of daily trading volume following the share buyback announcement, indicating positive market reaction[12]. - Despite inflation and geopolitical tensions, the outlook for 2023 remains optimistic, particularly for the airline business as pandemic restrictions are lifted[14]. - The company faced challenges due to high turnover rates among skilled technicians, impacting service capacity[94]. - The company is closely monitoring financial markets and their impact on financial risks, while maintaining dialogue with banks regarding risk mitigation strategies[190]. Sustainability and Social Responsibility - The group aims to achieve net-zero carbon emissions by 2050, with interim targets to reduce greenhouse gas emissions by 50% by 2030 compared to 2018 levels[13]. - The company is committed to sustainability initiatives, including carbon reduction and responsible sourcing, to enhance its corporate citizenship[60]. - The company has established a dedicated governance structure to monitor environmental and sustainability risks[189]. - The company is adopting the NIST Cybersecurity Framework to enhance its cybersecurity and data protection policies[186]. Employee and Talent Management - The company employs over 29,000 staff in Hong Kong and more than 35,000 in mainland China, totaling nearly 80,000 employees globally[5]. - The company provides competitive compensation and benefits to attract, motivate, and retain talent across all levels[150]. - The company is actively recruiting talent to support business recovery[86]. - The company has a succession plan in place, regularly assessing the tenure of directors and maintaining a candidate list for potential new appointments[165].