Core Viewpoint - Swire Pacific Company A faced multiple challenges in the first half of 2025, with a notable divergence in performance across its core business segments, highlighting the resilience of its diversified strategy [1] Real Estate Sector - Swire Properties reported a recurring core profit of HKD 28.29 billion, a 2% decrease from HKD 28.98 billion in the same period of 2024 [1] - The Hong Kong office market is under pressure due to high vacancy rates and ongoing new supply, leading to a weak performance [2] - Retail business in Hong Kong is impacted by slow recovery in outbound tourism, changing consumer behavior, and economic uncertainty [1][2] - In contrast, the mainland China business showed relative stability, benefiting from government economic stimulus and rising consumer confidence [1] Beverage Business - Swire Coca-Cola recorded a recurring profit of HKD 861 million, slightly down from HKD 878 million in 2024 [3] - The performance showed significant regional divergence, with mainland China business growing by 8%, indicating resilience and growth potential [3] - Other markets, including Hong Kong, Taiwan, and Southeast Asia, faced challenges, particularly in Southeast Asia due to factory relocations and currency depreciation [3] Aviation Sector - The aviation division demonstrated steady growth, with Cathay Pacific Group reporting a profit of HKD 36.51 billion, up from HKD 36.13 billion in the previous year [4] - The improvement was driven by increased passenger volume and stable cargo performance [4] - The group implemented measures for revenue management and cost control, leading to improved performance in associated businesses [4][5] Future Outlook - Management remains confident in long-term business prospects despite acknowledging short-term uncertainties [5] - The company plans to continue executing existing investment plans and seek growth opportunities, particularly in the Greater Bay Area [5] - As of June 30, 2025, the group maintained a strong financial position with available liquidity of HKD 52.6 billion and a net debt-to-capital ratio of 22.7% [5]