Financial Performance - In 2021, the company's equity return improved to 1.3%, up from -4.1% in 2020, representing a 5.4 percentage point increase [7]. - The company reported a profit attributable to shareholders of HKD 3,364 million, a significant recovery from a loss of HKD 10,999 million in the previous year [8]. - Basic profit for the year was HKD 5,300 million, compared to a loss of HKD 3,969 million in 2020 [8]. - The company achieved a recurring basic profit of HKD 4,885 million, a recovery from a loss of HKD 609 million in the previous year [8]. - Revenue increased to HKD 92,403 million, up 15% from HKD 80,032 million [9]. - Operating profit surged to HKD 10,522 million, a 290% increase from HKD 2,695 million [9]. - The company reported a significant reduction in losses for its aviation segment, with a notable decrease in impairment charges [15]. - The company reported a net profit of HKD 15.5 billion from operations, with an additional HKD 7.4 billion generated from asset sales and capital investments totaling HKD 13.2 billion [29]. - The group reported a consolidated profit attributable to shareholders of HKD 3.36 billion in 2021, a significant improvement from a loss of HKD 10.99 billion in 2020 [28]. - The company reported a loss of HKD 1,931 million from investment property valuation in 2021, an improvement from a loss of HKD 4,421 million in 2020 [44]. Dividends and Shareholder Returns - The 'A' share dividend per share increased by 53% to HKD 2.60, compared to HKD 1.70 in 2020 [7]. - Basic earnings per share for 'A' shares improved to HKD 3.53 from a loss of HKD 2.64 [10]. - Basic earnings per share for 'B' shares increased to HKD 0.71 from a loss of HKD 0.53 [10]. - The company aims to maintain a dividend policy that targets continuous growth, planning to distribute no less than 1/3 of its earnings [15]. - The group plans to maintain a dividend policy that ensures at least half of the recurring net profit is distributed as dividends, excluding contributions from Cathay Pacific [28]. Business Segments and Investments - The beverage division distributed Coca-Cola products to a population of 762 million in Greater China and the United States [5]. - The company is focusing on expanding its business in healthcare and sustainable food sectors under a new division called "Swire Investments" [4]. - The company plans to continue seeking investment opportunities in private healthcare services, particularly in major urban areas in mainland China [5]. - Swire Properties plans to invest over HKD 100 billion in various development projects over the next decade, with more than half allocated to mainland China [18]. - The company plans to invest HKD 7 billion in a new retail-led integrated development project in Xi'an, China [15]. - Swire Group aims to invest over HKD 20 billion in healthcare businesses in mainland China over the next decade [18]. Market and Operational Insights - The beverage sector, specifically Swire Coca-Cola, achieved a record profit, increasing by 23% compared to the previous year, with overall sales rising by 8% [16]. - The company emphasized digital innovation and improved product offerings as key drivers for future growth [28]. - The company is actively developing new products to meet changing consumer preferences, particularly in the beverage sector [29]. - The retail market in Hong Kong showed signs of recovery in 2021, but the resurgence of COVID-19 in early 2022 has impacted this recovery [116]. - The company is committed to sustainable development, integrating environmental, social, and governance elements into its operations [16]. Real Estate and Property Development - The recurring basic profit for the real estate sector remained stable at HKD 58.24 billion, compared to HKD 58.34 billion in the previous year [16]. - The real estate sector's recurring net profit, excluding gains from property sales, was HKD 5.82 billion in 2021, stable compared to HKD 5.83 billion in 2020 [28]. - The total floor area of completed properties in Hong Kong is 12 million square feet, with an additional 1.2 million square feet under construction [39]. - The total area of properties under development and planned reached 27,046 thousand square feet, indicating ongoing expansion efforts [43]. - The company has a 50% interest in the South Island Place project, which had an occupancy rate of 88% as of December 31, 2021 [56]. Aviation Sector Performance - Cathay Pacific recorded a significant reduction in losses, down 74% to HKD 5.5 billion from HKD 21.6 billion, attributed to strong cargo performance and effective cost management [16]. - Cathay Pacific recorded a loss attributable to shareholders of HKD 55.27 billion in 2021, compared to a loss of HKD 216.48 billion in 2020 [162]. - The airline's passenger revenue for 2021 was HKD 4.34 billion, a decrease of 62% compared to 2020, with passenger traffic down 85% [163]. - Cargo revenue increased by 32% to HKD 32.37 billion in 2021, with a cargo load factor rising by 8.1 percentage points to 81.4% [165]. - The average age of the fleet increased to 10.5 years in 2021 from 10.1 years in 2020 [160]. Challenges and Future Outlook - The company anticipates maintaining passenger capacity at approximately 20% of pre-pandemic levels if current restrictions persist [175]. - The company expects significant revenue growth in mainland China for 2022, driven by improved product and packaging mix [145]. - The company anticipates that raw material costs and operating expenses will increase, putting pressure on profits [145]. - The hotel business in Hong Kong is facing challenges due to COVID-19, but domestic tourism in mainland China is expected to continue recovering [116]. - The company continues to focus on effective cash and cost management amid ongoing operational challenges [171].
太古股份公司B(00087) - 2021 - 年度财报