2021 Interim Results

Swire Pacific LimitedSwire Properties LimitedCathay Pacific Airways Limited
Swire Pacific Limited 2021 Interim Report
COVID-19 continues to make the business environment very difficult, but our businesses have proven themselves to be resilient. After making losses in 2020, Swire Pacific made a recurring underlying profit of HK$786 million in the first half of 2021, compared with a loss of HK$123 million in the same period last year. Contributing factors included a significant increase in profits at Swire Coca-Cola, a strong performance from the Property Division in the Chinese Mainland and reduced losses from Cathay Pacific. The first interim dividends for 2021 are HK$1.00 per 'A' share and HK$0.20 per 'B' share, an increase of 43% over the first half dividends in 2020.

Commenting on the future of the Company, Merlin Swire, outgoing Chairman of Swire Pacific said, "We are focusing on delivering our corporate strategy, are well positioned for a recovery and have strong growth opportunities in Greater China.

"We expect Swire Properties to continue to perform well, particularly in executing its placemaking strategy in the Chinese Mainland. We have announced exciting new property projects there, including a joint venture to revitalise the historic Zhangyuan shikumen compound in the Jing'an District in Shanghai, and a cooperation with municipal authorities in Beijing in relation to the transformation into a cultural and commercial landmark of a site adjacent to our Taikoo Li Sanlitun development. Swire Coca-Cola's strong performance is expected to continue. We will continue to invest in healthcare. We are focused on the repositioning of our aviation business, and whilst the short-term outlook is poor, Cathay Pacific has significant liquidity and targets cash burn of less than HK$1 billion per month for the remainder of 2021. It will be leaner and more efficient when the recovery comes.

"Consistent with our strategy, we continue to shape our portfolio by reducing our exposure to non-core businesses. This started with significant disposals in the Trading & Industrial Division. This year, we have down-sized our Marine Services Division. We agreed to dispose of our interest in the HUD group and reduced further the size of Swire Pacific Offshore’s fleet. We have also reduced our interest in its European windfarm installation business. These disposals will help us to concentrate on three core divisions, Property, Beverages and Aviation, all deeply embedded in Greater China. We see a bright future for all of them, despite current problems in the Aviation division. We are, in addition, determined to build a significant business in healthcare services."

Swire Pacific Interim Report 2021
 

Watch video 
2021 Interim Results Analyst Briefing

2021 Interim Results Analyst Briefing
 

Other reference 
2020 Annual Report
2021 Interim Report (PDF)
2021 Interim Results Analyst Briefing
2021 Interim Results Analyst Briefing presentation
 
Swire Properties Limited 2021 IR Chart
Swire Properties recorded an increase in attributable underlying profit from HK$3,753 million to HK$4,513 million in the first half of 2021, which principally reflected the sale of car parking spaces in Hong Kong earlier in the year.

Recurring underlying profit was HK$3,716 million in the first half of 2021, compared with HK$3,702 million in the first half of 2020. This primarily reflected higher retail rental income resulting from strong retail sales in the Chinese Mainland and reduced losses in the Company's hotel business, largely offset by lower retail rental income in Hong Kong and the loss of rental income from the Cityplaza One office tower.

In Hong Kong, Swire Properties' office portfolio remained resilient, despite the weak market, with high occupancies and stable rents. The Company saw some recovery in retail sales in Hong Kong, reflecting greater local consumption. However, the overall market remains challenging.

Swire Properties' Chinese Mainland malls delivered excellent results, with a strong growth in retail sales, robust occupancy and high footfall, reflecting strong local demand. The Company recorded an impressive 38% year-on-year increase in attributable gross rental income generated by its Chinese Mainland malls in the first half of the year.

Despite COVID-19, Swire Properties achieved strong residential sales in the first half of the year. In Hong Kong, 26 out of 37 units were sold in the EIGHT STAR STREET development. All units in the EDEN development in Singapore have been sold, as have most of the remaining units at Reach and Rise in Miami. Results from the Company's Swire Hotels arm also improved in the first half of 2021, due to better performances in the Chinese Mainland and the USA. In the USA, retail sales are recovering strongly from the adverse effects of COVID-19.

The Board declared a first interim dividend of HK$0.31 per share, representing a 3% increase from the first interim dividend paid in 2020.

"Our fundamentals remain strong and our business continues on a sound financial footing. Our successful placemaking strategy continues to underpin everything we do. We are sharply focused on growing our portfolio, and the initiatives taken over the past few years have paved the way for future growth. We remain deeply committed to the Hong Kong and Chinese Mainland markets while looking for new opportunities that fit with our business strategy," said Merlin Swire, outgoing Chairman of Swire Properties.

Swire Properties 2021 Interim Result

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2021 Interim Results Analyst Briefing

2021 Interim Results Analyst Briefing
2021 Highlight

2021 Interim Highlights
 

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2021 Interim Report
2021 Interim Report (PDF)
2021 Analyst Briefing
2021 Interim Results Analyst Briefing (PDF)
 
Cathay Pacific Limted 2021 IR chart
COVID-19 continued to pose significant challenges for the Cathay Group in the first half of 2021 and this continues to be the toughest period in our history. The emergence of new virus variants led to the tightening of travel restrictions and quarantine requirements in Hong Kong and several of our key markets.

The Cathay Group's attributable loss was HK$7,565 million in the first half of 2021 (2020 first half: loss of HK$9,865 million). Cathay Pacific's loss after tax was HK$5,031 million in the first half of 2021 (2020 first half: loss of HK$7,361 million), and the share of losses from subsidiaries and associates was HK$2,534 million (2020 first half: loss of HK$2,504 million).

The loss for the first half of 2021 includes impairment and related charges of HK$500 million mainly relating to 11 aircraft that are unlikely to re-enter meaningful economic service before they retire or are returned to lessors and HK$403 million restructuring costs. This compares to impairment and related charges for 16 aircraft (HK$1,242 million) and certain airline service subsidiaries' assets (HK$1,223 million) in the first half of 2020.

Passenger revenue was severely affected by COVID-19-related travel restrictions and quarantine requirements. It decreased by 92.8% to HK$745 million in the first half of 2021 compared with the first half of 2020. Revenue passenger kilometres ("RPK") decreased by 95.8%. Passenger capacity decreased by 85.0%. We carried 157 thousand passengers in the first half, an average of 868 passengers per day, 96.4% fewer than in the same period in 2020. The load factor was 18.9%, compared with 67.3% in the first half of 2020.

Cargo performance was limited by capacity restrictions resulting from crew quarantine requirements and lower cargo capacity as a result of fewer passenger aircraft being flown. Available cargo tonne kilometres ("AFTK") decreased by 31.9%. Total tonnage decreased by 17.7% to 549 thousand tonnes. Revenues were HK$11,112 million, a decrease of 0.6% compared to the first half of 2020. Revenues were strong considering the circumstances, sustained by cargo yield increases of 24.4% to HK$3.37 and record load factors of 81.4% (2020 first half: 69.3%).

Interim Report 2021

Watch video 
2021 Interim Results Analyst Briefing

2021 Interim Results Analyst Briefing
 

Other reference 
2021 Interim Report
2021 Interim Report (PDF)
2021 Interim Result Analyst Briefing
2021 Interim Result Analyst Briefing (PDF)
 
Swire Pacific Limited
Swire Pacific Limited 2021 Interim Report
COVID-19 continues to make the business environment very difficult, but our businesses have proven themselves to be resilient. After making losses in 2020, Swire Pacific made a recurring underlying profit of HK$786 million in the first half of 2021, compared with a loss of HK$123 million in the same period last year. Contributing factors included a significant increase in profits at Swire Coca-Cola, a strong performance from the Property Division in the Chinese Mainland and reduced losses from Cathay Pacific. The first interim dividends for 2021 are HK$1.00 per 'A' share and HK$0.20 per 'B' share, an increase of 43% over the first half dividends in 2020.

Commenting on the future of the Company, Merlin Swire, outgoing Chairman of Swire Pacific said, "We are focusing on delivering our corporate strategy, are well positioned for a recovery and have strong growth opportunities in Greater China.

"We expect Swire Properties to continue to perform well, particularly in executing its placemaking strategy in the Chinese Mainland. We have announced exciting new property projects there, including a joint venture to revitalise the historic Zhangyuan shikumen compound in the Jing'an District in Shanghai, and a cooperation with municipal authorities in Beijing in relation to the transformation into a cultural and commercial landmark of a site adjacent to our Taikoo Li Sanlitun development. Swire Coca-Cola's strong performance is expected to continue. We will continue to invest in healthcare. We are focused on the repositioning of our aviation business, and whilst the short-term outlook is poor, Cathay Pacific has significant liquidity and targets cash burn of less than HK$1 billion per month for the remainder of 2021. It will be leaner and more efficient when the recovery comes.

"Consistent with our strategy, we continue to shape our portfolio by reducing our exposure to non-core businesses. This started with significant disposals in the Trading & Industrial Division. This year, we have down-sized our Marine Services Division. We agreed to dispose of our interest in the HUD group and reduced further the size of Swire Pacific Offshore’s fleet. We have also reduced our interest in its European windfarm installation business. These disposals will help us to concentrate on three core divisions, Property, Beverages and Aviation, all deeply embedded in Greater China. We see a bright future for all of them, despite current problems in the Aviation division. We are, in addition, determined to build a significant business in healthcare services."

Swire Pacific Interim Report 2021
 

Watch video 
2021 Interim Results Analyst Briefing

2021 Interim Results Analyst Briefing
 

Other reference 
2020 Annual Report
2021 Interim Report (PDF)
2021 Interim Results Analyst Briefing
2021 Interim Results Analyst Briefing presentation
 
Swire Properties Limited
Swire Properties Limited 2021 IR Chart
Swire Properties recorded an increase in attributable underlying profit from HK$3,753 million to HK$4,513 million in the first half of 2021, which principally reflected the sale of car parking spaces in Hong Kong earlier in the year.

Recurring underlying profit was HK$3,716 million in the first half of 2021, compared with HK$3,702 million in the first half of 2020. This primarily reflected higher retail rental income resulting from strong retail sales in the Chinese Mainland and reduced losses in the Company's hotel business, largely offset by lower retail rental income in Hong Kong and the loss of rental income from the Cityplaza One office tower.

In Hong Kong, Swire Properties' office portfolio remained resilient, despite the weak market, with high occupancies and stable rents. The Company saw some recovery in retail sales in Hong Kong, reflecting greater local consumption. However, the overall market remains challenging.

Swire Properties' Chinese Mainland malls delivered excellent results, with a strong growth in retail sales, robust occupancy and high footfall, reflecting strong local demand. The Company recorded an impressive 38% year-on-year increase in attributable gross rental income generated by its Chinese Mainland malls in the first half of the year.

Despite COVID-19, Swire Properties achieved strong residential sales in the first half of the year. In Hong Kong, 26 out of 37 units were sold in the EIGHT STAR STREET development. All units in the EDEN development in Singapore have been sold, as have most of the remaining units at Reach and Rise in Miami. Results from the Company's Swire Hotels arm also improved in the first half of 2021, due to better performances in the Chinese Mainland and the USA. In the USA, retail sales are recovering strongly from the adverse effects of COVID-19.

The Board declared a first interim dividend of HK$0.31 per share, representing a 3% increase from the first interim dividend paid in 2020.

"Our fundamentals remain strong and our business continues on a sound financial footing. Our successful placemaking strategy continues to underpin everything we do. We are sharply focused on growing our portfolio, and the initiatives taken over the past few years have paved the way for future growth. We remain deeply committed to the Hong Kong and Chinese Mainland markets while looking for new opportunities that fit with our business strategy," said Merlin Swire, outgoing Chairman of Swire Properties.

Swire Properties 2021 Interim Result

Watch videos 
2021 Interim Results Analyst Briefing

2021 Interim Results Analyst Briefing
2021 Highlight

2021 Interim Highlights
 

Other reference 
2021 Interim Report
2021 Interim Report (PDF)
2021 Analyst Briefing
2021 Interim Results Analyst Briefing (PDF)
 
Cathay Pacific Airways Limited
Cathay Pacific Limted 2021 IR chart
COVID-19 continued to pose significant challenges for the Cathay Group in the first half of 2021 and this continues to be the toughest period in our history. The emergence of new virus variants led to the tightening of travel restrictions and quarantine requirements in Hong Kong and several of our key markets.

The Cathay Group's attributable loss was HK$7,565 million in the first half of 2021 (2020 first half: loss of HK$9,865 million). Cathay Pacific's loss after tax was HK$5,031 million in the first half of 2021 (2020 first half: loss of HK$7,361 million), and the share of losses from subsidiaries and associates was HK$2,534 million (2020 first half: loss of HK$2,504 million).

The loss for the first half of 2021 includes impairment and related charges of HK$500 million mainly relating to 11 aircraft that are unlikely to re-enter meaningful economic service before they retire or are returned to lessors and HK$403 million restructuring costs. This compares to impairment and related charges for 16 aircraft (HK$1,242 million) and certain airline service subsidiaries' assets (HK$1,223 million) in the first half of 2020.

Passenger revenue was severely affected by COVID-19-related travel restrictions and quarantine requirements. It decreased by 92.8% to HK$745 million in the first half of 2021 compared with the first half of 2020. Revenue passenger kilometres ("RPK") decreased by 95.8%. Passenger capacity decreased by 85.0%. We carried 157 thousand passengers in the first half, an average of 868 passengers per day, 96.4% fewer than in the same period in 2020. The load factor was 18.9%, compared with 67.3% in the first half of 2020.

Cargo performance was limited by capacity restrictions resulting from crew quarantine requirements and lower cargo capacity as a result of fewer passenger aircraft being flown. Available cargo tonne kilometres ("AFTK") decreased by 31.9%. Total tonnage decreased by 17.7% to 549 thousand tonnes. Revenues were HK$11,112 million, a decrease of 0.6% compared to the first half of 2020. Revenues were strong considering the circumstances, sustained by cargo yield increases of 24.4% to HK$3.37 and record load factors of 81.4% (2020 first half: 69.3%).

Interim Report 2021

Watch video 
2021 Interim Results Analyst Briefing

2021 Interim Results Analyst Briefing
 

Other reference 
2021 Interim Report
2021 Interim Report (PDF)
2021 Interim Result Analyst Briefing
2021 Interim Result Analyst Briefing (PDF)
 
This document may contain forward-looking statements that reflect the Company's beliefs, plans or expectations about the future or future events. These forward-looking statements are based on a number of assumptions, estimates and projections, and are therefore subject to inherent risks, uncertainties and other factors beyond the Company's control. The actual results or outcomes of events may differ materially and/or adversely due to a number of factors, including the effects of COVID-19, changes in the economies and industries in which the Group operates (in particular in Hong Kong and the Chinese Mainland), macro-economic and geopolitical uncertainties, changes in the competitive environment, foreign exchange rates, interest rates and commodity prices, and the Group's ability to identify and manage risks to which it is subject. Nothing contained in these forward-looking statements is, or shall be, relied upon as any assurance or representation as to the future or as a representation or warranty otherwise. Neither the Company nor its directors, officers, employees, agents, affiliates, advisers or representatives assume any responsibility to update these forward-looking statements or to adapt them to future events or developments or to provide supplemental information in relation thereto or to correct any inaccuracies.
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Senior management appointment

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2021 Interim Results

2021 Interim Results

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