Swire Pacific posts highest reported first-half recurring underlying profit amidst record levels of investment
Guy Bradley, Chairman of Swire Pacific Limited and Swire Properties Limited (centre), Martin Murray, Finance Director of Swire Pacific Limited (first left), Tim Blackburn, Chief Executive of Swire Properties Limited (second right), Karen So, Chief Executive Officer of Swire Coca-Cola Limited (second left) and Mabelle Ma, Chief Development Officer of Swire Properties Limited (first right).
Opening remarks by Guy Bradley, Chairman of Swire Pacific Limited and Swire Properties Limited:
Good afternoon and thank you for coming.
I’m very pleased with Swire Pacific’s performance. Our first-half recurring underlying profit has increased to HK$6,962 million compared with HK$4,712 million for the same period last year. This record first-half performance was driven by improving consumer sentiment in all divisions.
In the first six months of 2026, both Swire Pacific and Swire Properties focused on delivering returns to shareholders through our respective progressive dividend policies. At Swire Pacific, we are executing the strategic plans of our Property, Beverages and Aviation divisions across our core markets of Hong Kong, the Chinese Mainland and South East Asia. We are also investing at record levels across our businesses to support future growth. Our financial position remains solid. Our balance sheet is robust. This enables us to keep investing for the long term.
Swire Properties’ strong performance reflects improving market sentiment. We continue to deliver our HK$100 billion investment plan, with close to 70% now committed, so we can deliver our long-term growth targets. This is supported by approximately HK$60 billion in cumulative divestment proceeds thanks to our active capital recycling strategy. All our portfolios are demonstrating resilience. A key driver of our first-half results was the performance of our residential trading portfolio, particularly the sale of two ultra-luxury residential houses at 6 Deep Water Bay Road. Positive momentum continued across Hong Kong and the Chinese Mainland.
On the retail front, our malls in Hong Kong and the Chinese Mainland are outperforming their respective markets, supported by our diverse tenant mix, dedicated portfolio management and innovative marketing activations. The office market in Hong Kong is showing encouraging early signs of stabilisation. Occupancy is high across the portfolio, supported by tenant retention and ongoing expansion by existing occupiers.
In the Chinese Mainland, we have seven projects under development, which represent our ambitious, retail-led development pipeline. In Hong Kong, we are focused on strengthening and upgrading our two flagship developments, Pacific Place and Taikoo Place.
In the Chinese Mainland, we have seven projects under development, which represent our ambitious, retail-led development pipeline. In Hong Kong, we are focused on strengthening and upgrading our two flagship developments, Pacific Place and Taikoo Place.
Swire Coca-Cola has seen significant improvements in results from the Chinese Mainland, driven by consumer sentiment and our efforts to adapt to emerging e-commerce channels. As part of our RMB12 billion investment plan, we recently opened two world-class facilities in Kunshan and Guangzhou. South East Asia remains an important growth market, and the integration of new franchises is progressing well following our recent, significant investments in the region.
The HAECO group’s good first-half performance was driven by robust demand for base maintenance and engine overhaul services. HAECO will develop an aviation maintenance facility in Vietnam, serving domestic and international customers. HAECO Xiamen’s operations at Xiang’an International Airport are expected to commence later this year. Both these initiatives complement HAECO’s broader airframe services growth strategy, which is underpinned by more than US$1 billion in investment.
The Cathay group’s excellent first-half performance was driven by ongoing underlying demand for Cathay Pacific and Cathay Cargo, an improved performance from HK Express and stronger contributions from associates. While demand remained high in the second quarter, jet fuel prices increased significantly due to the situation in the Middle East. Having recently taken on the role of Chair, it has been very encouraging to see this strong result. The Cathay group is investing in growing its business and adding new destinations, contributing to the development of the Hong Kong international aviation hub. It has already committed around HK$150 billion in investments into its fleet, cabin and lounge products, and digital innovation.
As we look ahead, we are confident about the prospects for our businesses, supported by the ongoing recovery in consumer sentiment. As ever, we are committed to supporting Hong Kong’s role as a global financial centre. Pacific Place and Taikoo Place’s headquarters-grade office space enjoy high occupancy rates while attracting both major institutions and talent alike. As the Cathay group celebrates its 80th anniversary, it is strengthening Hong Kong by connecting the Greater Bay Area and the rest of the Chinese Mainland with the world. We are also encouraged by the Government’s efforts to formulate Hong Kong’s first Five-Year Plan, which will set out a clear blueprint for the city’s long-term economic development.