3 6 Ke·2025-08-13 03:03Core Viewpoint - Swire Properties reported a revenue of HKD 87.2 billion for the first half of 2025, marking a 20% year-on-year increase, while the profit attributable to shareholders showed a loss of HKD 12 billion, contrasting with pre-pandemic performance [2][4]. Retail Performance - The retail sales across Swire Properties' nine major malls in Hong Kong and mainland China have rebounded, with most locations nearing or exceeding 2019 levels, indicating the resilience of high-end retail [2][4]. - Specific retail sales performance for key properties shows significant recovery, with notable increases in sales for properties like Shanghai Xinyi Taikoo Hui and Beijing Sanlitun Taikoo Li, while Guangzhou Taikoo Hui experienced a decline [3][9][13]. Financial Metrics - The rental income from retail properties in mainland China rose by 2% to HKD 22.72 billion, with retail sales up by 1%, outperforming the market average and exceeding pre-pandemic levels by 70% [8]. - In Hong Kong, rental income from retail properties fell by 2% to HKD 11.69 billion, despite maintaining full occupancy, reflecting a decline in turnover-based rents [10][11]. Strategic Initiatives - Swire Properties is shifting focus from traditional rental income to innovative asset management and operational strategies, including the expansion of its retail offerings and enhancing tenant mix to adapt to changing consumer behaviors [4][16]. - The company is also pursuing new projects, such as the Guangzhou Cultural Center acquisition, to expand its commercial footprint and enhance the overall retail experience [16]. Market Trends - The retail landscape in Hong Kong is undergoing structural changes due to increased competition from online shopping and cross-border consumption, prompting Swire Properties to adapt its strategies accordingly [10][12]. - The company is exploring opportunities for diversification in its retail offerings, including introducing new brands and enhancing experiential retail to attract a broader customer base [21][23].