Company Announcements

2021 HALF YEAR RESULTS

Source: RNS
RNS Number : 9377G
Jardine Matheson Hldgs Ltd
29 July 2021
 

29th July 2021

For immediate release

 

The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.

 

Jardine Matheson Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2021

 

Some signs of improvement, but conditions remain challenging, especially in Southeast Asia

 

Highlights

·      Underlying profit of US$615 million for the period to 30th June 2021, up 65% against the prior year, but still 17% behind 2019 levels

·      Group simplification by the privatisation of Jardine Strategic Holdings completed in April

·      The Group's balance sheet and funding position remain robust

·      Strengthening of the strategic partnership with Zhongsheng announced  

 

"There was some improvement in the Group's performance and profitability in the first half compared with the same period last year, but COVID-19 continued to have an impact in most sectors and markets.  Conditions are expected to remain challenging for the second half of the year, particularly due to the worsening COVID-19 situation in Southeast Asia, making it difficult to predict full-year performance. 

 

Ensuring the health, wellbeing and safety of our colleagues amid the deepening pandemic continues to be the Group's top priority.  On behalf of the Board, I would like to recognise the remarkable resilience shown by colleagues across the Group and thank all  of them for their continuing dedication, hard work and professionalism during such challenging times.

 

The Group has a strong balance sheet and liquidity position and will continue to focus on opportunities to create sustainable long-term growth."

 

Ben Keswick, Executive Chairman

 

Results

(unaudited)

Six months ended 30th June

 

 

 

2021

US$m

2020

US$m

 

 

Change

%

Gross revenue including 100% of associates and joint ventures

52,488

44,936

 

+17

Revenue

17,492

15,906

 

+10

Underlying profit* attributable to shareholders

615

373

 

+65

Loss attributable to shareholders

(117)

(775)

 

+85

Shareholders' funds#

27,762

29,387

 

-6

 

US$

US$

 

%

Underlying earnings per share*

1.86

1.01

 

+84

Loss per share

(0.35)

(2.09)

 

+83

Net asset value per share#

94.17

81.32

 

+16

 

US¢

US¢

 

%

Interim dividend per share

44.00

44.00

 

-

*      The Group uses 'underlying profit' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in note 7 to the condensed financial statements.  Management considers this to be a key measure which provides additional information to enhance understanding of the Group's underlying business performance.

#     At 30th June 2021 and 31st December 2020, respectively.  Net asset value per share is based on the book value of shareholders' funds.

The interim dividend of US¢44.00 per share will be payable on 13th October 2021 to shareholders on the register of members at the close of business on 20th August 2021 and will be available in cash with a scrip alternative

 

Chairman's Statement

Overview

There were signs of improvement in the Group's performance and profitability in the first half compared with the same period last year, but COVID-19 continued to have an impact in most sectors and markets, and conditions are expected to remain challenging for the second half of the year.  The absence of tourists from the Chinese mainland will continue to impact the performance of the Group's businesses in North Asia, including Hongkong Land's Central retail portfolio in Hong Kong, Dairy Farm's health and beauty business and Mandarin Oriental's hotels.  The performance of the Group's businesses in Indonesia and other parts of Southeast Asia is also expected to be significantly affected by the continuing severe impact of the pandemic and related restrictions.

The Group's underlying net profit for the first half was US$615 million, 65% higher than the same period last year.  Following the completion in mid-April 2021 of the privatisation of Jardine Strategic Holdings Limited ('JSH') (the 'Transaction'), and the elimination for accounting purposes of the cross-shareholding held by JSH in Jardine Matheson Holdings Limited (the 'Company'), the growth in the Group's underlying net profit in the period reflected both improved business performance - by comparison to the prior year when many of the Group's businesses were most severely impacted by the pandemic and measures to contain it - and a higher share of earnings in businesses formerly held by JSH.  Within the overall profit growth of 65% for the period, approximately 59% reflected recovering business performance and 6% the impact of completing the Transaction, with effect from mid-April 2021.  

Underlying earnings per share increased by 84% to US$1.86.  Similarly, this increase reflected both business recovery (comprising 63% of the 84% growth) and the effect of the Transaction on earnings and the Company's issued share capital (21%).  The revenue of the Group for the period was 10% higher at US$17.5 billion, while gross revenue, including 100% of associates and joint ventures, was up 17% at US$52.5 billion.

The Group recorded a non-trading net loss in the first half of US$732 million, compared with a non-trading net loss of US$1.1 billion in the first half of 2020.  This was largely a result of the usual semi-annual revaluation of investment properties in Hongkong Land which was carried out during the period, which produced a net revaluation loss of US$635 million.  The Group recorded a loss attributable to shareholders for the period of US$117 million, 85% lower than the loss in the first half of 2020. 

Group results in some markets benefitted from government support relating to COVID-19, which totalled US$36 million attributable to the Group, compared to a total of US$78 million in the same period last year.  This support is expected to reduce significantly in the second half.

With the exception of Dairy Farm, all of the Group's significant businesses saw improved profits, and there were reduced losses from Mandarin Oriental and Dairy Farm's associate, Maxim's.  Group profits, however, still remain around 17% behind the levels seen prior to the onset of the pandemic. 

Dividend

The Board is recommending an interim dividend of US¢44.00 per share, in line with last year.  As explained in the announcement of the Transaction in March 2021, the Group will assess the extent of a one-off uplift in the dividend at the time of the Group's 2021 full year results announcement, when the Group's final results for the year are known.  

Significant Developments

The Group continues to actively manage its portfolio of businesses and deploy capital into value-creating opportunities.  This was demonstrated in the period by the completion in April 2021 of the successful privatisation of JSH, creating a conventional ownership structure and further increasing the Group's operational efficiency and financial flexibility. 

Shortly after the end of the period, the Group announced the strengthening of its strategic partnership with Zhongsheng through the transfer of its Mercedes-Benz auto dealership business operating on the Chinese mainland under the Zung Fu brand.  Total consideration of US$1.3 billion will be settled in cash and new Zhongsheng shares, which will increase the Group's shareholding in Zhongsheng on a fully-diluted basis to 20% and solidify its position as the second-largest shareholder after the founders.

Hongkong Land secured three predominantly residential development projects on the Chinese mainland in the period - one in Nanjing and two in Wuhan - as well as two further residential development projects in Singapore.

Dairy Farm carried out the relaunch of its Giant brand in over 100 stores in Malaysia during the first half of the year.  The group's yuu Rewards programme in Hong Kong continues to grow and has now attracted over 3.5 million members, with approximately 80 billion points issued.  A strategic review of PT Hero's business led to the announcement in May 2021 of a pivot in its trading operations by increasing investment in its strong brands of IKEA, Guardian and Hero Supermarkets and away from the Giant banner, reflecting changing market dynamics and consumer behaviours.   The group's Own Brand initiatives continue to gather momentum, with over 1,200 SKUs now launched.  Following the successful launch of the Meadows own brand range, Dairy Farm's Chinese own brand range Yu Pin King was also relaunched in the first half.  Own Brand penetration has grown approximately 40% since launch. 

Jardine Cycle & Carriage increased its interest in Cycle & Carriage Bintang from 59.1% to 88.0% through market purchases and acceptances under a voluntary general offer and increased its interest in REE from 29.8% to 30.8%.

Mandarin Oriental Ritz, Madrid, reopened in April after an extensive restoration and this 50%-owned property is expected to become a flagship property for the brand.  The group signed two management contracts in the first half of the year for a new hotel and residences in Hangzhou and a resort in Da Nang, Vietnam. 

Despite the short-term challenges of the pandemic, the Board sees it as essential to continue to invest for the long-term in new business opportunities in order to drive momentum and change across the Group, and this has led to several important developments in the period.  In March, the Group announced the formation of a strategic cooperation with Hillhouse Capital, a leading Asia-focused private equity firm, in order to drive innovation and digitisation in the Group's portfolio companies, with a focus on investment and business development opportunities predominantly in China, as well as South-East Asia. There will also be close collaboration between the Jardines and Hillhouse value creation teams and respective portfolio companies, in particular in the areas of consumer technology and digital enablement. 

Other significant strategic developments in the first half of the year included the announcement in Indonesia in May 2021 of the merger of Gojek - in which Astra has a stake - and Tokopedia to create GoTo group and form the largest technology ecosystem in the country.  Astra also invested in April 2021 in Halodoc, Indonesia's largest healthtech platform.  The Group also invested in the period in Pickupp, a Hong Kong-based logistics startup.

The Group also remains focussed on making efficiency improvements across its existing businesses to drive future growth, and good progress has been made in a number of businesses, including JEC, Hactl, Jardine Restaurants and Gammon, to implement efficiency measures in areas such as procurement, shared resources and operational efficiency.

Sustainability

The Group and each of its businesses have continued to make encouraging progress in the period in driving their sustainability agendas.  Working groups have been established to support each of the pillars of our Group sustainability strategy - shaping social inclusion, leading climate action and driving responsible consumption - and they are developing detailed plans for dealing with key issues, including decarbonisation, climate risk and reducing waste. 

Extensive work is also being done to set appropriate metrics and gather data from each of our businesses to enable the Group to measure and report on progress in implementing the sustainability agenda.  The Group will report against these metrics for the first time in its 2021 sustainability report.

Our Group businesses are also implementing a Group-wide colleague volunteering programme, which will facilitate participation by colleagues across the Group in a range of social inclusion and other activities.  An important first step in this initiative is the launch of a volunteering programme during the summer, with opportunities for colleagues across the Group's Hong Kong businesses to take part in activities supporting causes focussed on mental health, education and livelihood.

People

Ensuring the safety and wellbeing of our people remains a top priority as they face extensive challenges amid the ongoing pandemic.  We are offering support to our colleagues at this difficult time, including investing in their continuing development.  The Group has also participated in the ongoing drive to encourage take-up of COVID-19 vaccinations in Hong Kong by offering HK$10 million in incentives.

We would like to recognise the remarkable resilience shown by colleagues across the Group and thank all of them for their continuing dedication, hard work and professionalism throughout the period.

Outlook

While there have been some promising signs of an improvement in performance in the first half of the year, COVID-19 continues to cause uncertainty and trading conditions in the second half are expected to continue to be challenging in certain sectors and markets, in particular in Indonesia and other parts of Southeast Asia. The Group is confident, however, that its businesses have the right strategic focus and are taking the actions needed to drive operational performance and to take advantage of emerging opportunities in order to deliver strong, sustainable future growth.

Ben Keswick

Executive Chairman

 

Operating Review

Hongkong Land

Hongkong Land's underlying profit attributable to shareholders for the first six months of 2021 was US$394 million, up 12% from the equivalent period in 2020There was a loss attributable to shareholders of US$865 million after accounting for a net non-cash loss of US$1.3 billion arising on the semi-annual revaluation of investment properties due to lower open market rents.  This compares with a loss attributable to shareholders of US$1.8 billion in the first half of 2020, which included a net revaluation loss of US$2.2 billion.  The group's financial position remains robust, with a strong balance sheet and liquidity.

The profits of the Development Properties business were higher than the same period last year due to the timing of sales completions on the Chinese mainland.

Market sentiment in the Group's core markets remains stable.  At 30th June 2021, the Group had US$3.4 billion in sold but unrecognised contracted sales, compared with US$2.6 billion at the end of 2020.  Both sales completions and contracted sales are in line with expectations and are expected to strengthen in the second half of the year. 

Although competition to secure sites for development on the Chinese mainland remains fierce, the group has secured three predominantly residential projects during the period, including a site in Nanjing and two sites in Wuhan.

The profit contribution from the Singapore business in the first half of 2021 was higher than in the first half of 2020, which was impacted by pandemic-related disruptions.  During the period, the group secured two new development projects. 

In the rest of Southeast Asia, market sentiment remains weak in light of the ongoing impact of COVID-19 and related restrictions.

Contributions from the Investment Properties business remained resilient, despite negative rental reversions in Hong Kong.

The Hong Kong office portfolio continued to perform relatively well amidst the ongoing market downturn.  There was a modest increase in new office leasing activity due to improved sentiment and a narrowing rental differential between Central and other parts of the city.  Vacancy on a committed basis was slightly lower than at the end of 2020, while office rental reversions were negative.

Trading at the Group's Central retail portfolio benefitted from a modest recovery in luxury retail market sentiment.  Temporary rent relief continues to be provided by the group on a case-by-case basis.  Singapore vacancy remained unchanged on a committed basis, and average office rents there increased.

Trading at WF CENTRAL in Beijing benefitted from strong luxury retail market sentiment on the Chinese mainland.  Construction has started at the West Bund project, and the development is on track. 

Astra

Astra reported net profit equivalent to US$615 million under Indonesian reporting standards in the first half, a 61% increase on the same period last year, excluding the gain on the disposal of the interest in Permata Bank.  This was principally due to improvements in the performance of its automotive businesses, against the backdrop of an Indonesian economy which remains resilient as a result of high commodity prices. 

Net income from Astra's automotive business increased significantly to US$231 million, mainly due to the negative impact on performance in the second quarter of 2020 of the pandemic and related containment measures, and an increase in sales volumes in the first half of 2021 when the business benefitted from temporary luxury car sales tax incentivesThe wholesale car market increased by 51% in the first half and Astra's car sales were 50% higher, while its market share was maintained at 53%.  The wholesale market for motorcycles increased by 30%, and Astra's Honda motorcycle sales grew by 29%, with a stable market share.  Astra Otoparts reported a net profit of US$19 million compared to a net loss of US$20 million in the same period last year, mainly due to higher revenues from the original equipment manufacturer and replacement market segments.

Net income from the Financial Services division increased by 2% to US$149 million, due to higher contributions from the consumer finance and general insurance businessesConsumer finance businesses saw a 13% increase in the amounts financed, while the net income contribution from the car-focused finance companies increased by 3% due to lower loan loss provisioning.  The contribution from the motorcycle-focused financing business also increased by 3% due to lower loan loss provisioning.  Heavy equipment-focused finance operations saw a 46% increase in the amounts financed, but the net income contribution from this business fell 20%.  General insurance company, Asuransi Astra Buana, reported a 15% increase in net income to US$42 million due to higher investment income.

 

The Heavy Equipment, Mining, Construction and Energy division saw net income increase by 13% to US$187 million, mainly due to higher Komatsu heavy equipment sales and improved coal pricesUnited Tractors reported a 11% increase in net income to US$313 million.  Komatsu heavy equipment sales increased by 60%, but parts and service revenues were lower.  Mining contracting operations reported 3% lower overburden removal volume, while coal production was marginally higher.  Agincourt Resources saw 5% lower gold sales.  General contractor Acset Indonusa reported a net loss of US$11 million, mainly due to the slowdown of several ongoing projects and reduced project opportunities during the pandemic.

Net income from Agribusiness increased by 66% to US$36 million, mainly due to improved prices.  The group's Infrastructure and Logistics division reported a net profit of US$6 million, compared to a net loss of US$6 million for the same period last year, mainly due to higher toll road revenues.  Astra now has 358km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.

Jardine Motors

Jardine Motors saw its underlying net profit for the first half increase to US$154 million from US$61 million in the first half of 2020.

There were higher contributions from all businesses, with Zung Fu on the Chinese mainland seeing a 68% increase in profit to US$49m due to strong demand and solid margins as the market recovered.  The business in Hong Kong and Macau contributed a profit of US$9 million, compared to a slight loss last year, due to higher demand and better margins as the market recovered. 

The United Kingdom business delivered a substantial improvement in performance from the same period last year, with a profit of US$16 million, compared with a loss of US$28 million last year.  The business benefitted from an easing in lockdown measures.

There was a 34% higher contribution of US$80 million from the investment in Zhongsheng, relating to its performance for the six months from July to December 2020. 

Jardine Pacific

Jardine Pacific reported an underlying net profit of US$76 million in the first half, compared with US$53 million in the equivalent period in 2020.  The group remains resilient and cash-generative and has seen a good recovery in performance in most businesses in the period.

JEC improved its contribution to US$18 million from US$12 million last year, with its Hong Kong engineering units continuing to perform well and most of the regional units delivering higher contributions from improving markets.  Jardine Schindler also delivered an improved performance of US$17 million, compared with US$14 million in the same period last year.  There was strong existing installation performance, while the new installation market remains very competitive.

The Restaurants business saw better results reported in most banners, partly due to strong delivery sales and partly due to the benefit realised from ongoing process re-engineering projects.  Its profit contribution rose to US$18 million from US$15 million last year. 

In Transport Services, HACTL's performance was strong, with a profit contribution of US$15 million compared with US$11 million last year, driven by the continuing improvement in the global air cargo industry, which has led to record levels of demand and productivity improvements.  There was also a reduced loss from JAS, which benefitted from ongoing operational efficiency initiatives, despite flight volumes remaining low in the period.

Gammon delivered better performance, with a contribution of US$8 million compared with US$3 million in the first half of 2020, due to the softer impact of COVID-19 in Hong Kong.  Its order books are at record levels.  In June 2021, it was announced that Gammon had been awarded three significant new construction contracts, for an office tower and seven residential towers in Hong Kong.

There was a slightly lower contribution from Greatview, which continued to see volume growth in both the Chinese mainland and international markets but was impacted by both rising raw material costs and higher selling expenses.

Jardine Cycle & Carriage

Jardine Cycle & Carriage reported an underlying profit for the period of US$346 million, a significant improvement on the US$138 million profit it made for the first half of 2020, which saw the emergence of the pandemic and the implementation of major lockdown restrictions in the second quarter.  Most of the group's businesses have also seen some improvements in performance compared to previous quarters.

Astra's contribution to underlying profit increased by 71% to US$293 million, with the improvement in its performance primarily driven by its automotive business.

There was a materially higher contribution from Direct Motor Interests of US$24 million, compared to a small loss last year, with the business benefitting mainly from higher profits in its Singapore operations, where car sales grew.   

In Indonesia, Tunas Ridean saw improved profits from its automotive and financial services businesses, while the financial performance of Cycle & Carriage Bintang in Malaysia benefitted from improved sales due to a sales tax reduction, as well as cost savings initiatives.

Other Strategic Interests contributed a profit of US$66 million compared to US$28 million last year, largely due to the continued recovery of THACO's automotive operations, which saw better sales and higher margins due to an improved sales mix, and its real estate business, which benefitted from a gradual recovery of the market.

The contribution from Siam City Cement was 19% higher than the same period last year, mainly due to higher cement volumes in regional operations, although overall prices remained under pressure.  Margins were also impacted by an increase in coal prices, despite continued cost-saving initiatives.

REE's contribution was 72% higher than the same period last year, with improved performances from its power and water investments as a result of favourable hydrography and an increase in REE's solar projects.

JC&C's investment in Vinamilk produced a dividend income of US$11 million, stable from the same period last year.

 

Dairy Farm

Dairy Farm saw sales of US$4.5 billion for the period by its subsidiaries, 13% lower than the prior year.  Underlying profit was US$32 million, 69% lower than the same period last year.  The group's Convenience Stores business and Maxim's performed better than in the first half of 2020, but this was not enough to offset lower profits from Grocery Retail, Health and Beauty and IKEA. 

The Convenience Stores business reported strong growth in profitability compared with the same period last year, when movement restrictions and physical distancing requirements, together with temporary store closures on the Chinese mainland, impacted performance. 

The performance of Maxim's, the group's 50%-owned associate, improved in the first half relative to the same period last year and it reported a smaller loss, with encouraging Hong Kong and Chinese mainland like-for-like sales performance, partially offset by challenging trading conditions in Thailand and Singapore resulting from the surge of COVID-19 cases there in the second quarter.

The profitability of the Grocery Retail business was impacted by lower sales as panic buying behaviour at the start of the pandemic in the first half of last year ceased and consumers adjusted to a different way of life, together with ongoing challenging conditions in the Indonesian business.  There were, however, significant underlying improvements to business fundamentals as a result of the implementation of the group's multi-year transformation plan. 

Health and Beauty performance in the period was impacted by the prolonged closure of the border between Hong Kong and the Chinese mainland and the consequent lack of business from tourists in Hong Kong.  It was also affected by heavy restrictions on movement in Southeast Asia which resulted in a significant reduction in footfall in malls.  The group has continued to reinvest in prices to enhance the customer value proposition, leading to an improvement in sales volumes and operating cash flow.

IKEA profits were impacted by pandemic-related trading disruption as IKEA was required to close stores periodically or restrict customer numbers to comply with government policy, particularly in both Indonesia and Taiwan.  However, the encouraging performance of e-commerce, combined with a stronger store opening programme, led to higher sales in the Home Furnishings business than in the equivalent period last year.

Dairy Farm incurred a loss in respect of its investment in Yonghui, which saw lower margins resulting from rising competition online and delivered weaker performance than the same period last year when there were very high sales due to panic buying by customers

Mandarin Oriental

Mandarin Oriental reported a lower underlying loss of US$67 million for the first half of the year, compared with a loss of US$102 million in the equivalent period in 2020. 

The group's losses were attributable to its portfolio of owned hotels, while the management business was broadly breakeven due to increased management fees and lower operating costs.

All hotels were operational during the second quarter, whereas almost all hotels were closed in the same period last year.  In most markets, demand was largely domestic and leisure-based.

In Asia, demand on the Chinese mainland remained strong, while in South-East Asia, operating conditions generally worsened in the second quarter due to a resurgence in COVID-19 cases and low vaccination levels.  In Europe, Middle East and America, Covid-19 restrictions slowly eased, allowing occupancy levels to start to recover. 

The group continues to have a strong pipeline of future openings, with 21 new hotels and 13 residences scheduled to open in the next 5 years.

Government financial support in some markets and the group's ongoing cost-containment measures continued to support results.

There was a US$89 million decrease in the valuation of Mandarin Oriental's Causeway Bay site under development as a result of estimated market reductions in property values.

 

Financial Position

The balance sheet and liquidity of the Group remain strong, as reflected by the strong credit ratings assigned to the Company by the international rating agencies for the first time in the period. 

Shareholders' funds were US$27.8 billion at 30th June 2021, compared with US$29.4 billion at 31st December 2020. 

Consolidated net debt excluding financial services companies was US$8.1 billion at 30th June 2021, representing gearing of 14%, compared with 6% at 31st December 2020.  There was an increase in parent company debt resulting from the completion of the Group simplification in April 2021.  The debt incurred in connection with this transaction has since been mostly refinanced through a successful bond issue and the signing of new revolving credit facilities with the Group's relationship banks.

The Group had liquidity of US$13.9 billion as at 30th June 2021, consisting of US$7.6 billion in cash reserves and US$6.3 billion in unused, committed debt facilities.

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Profit and Loss Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

Year ended 31st December

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying

business

performance

US$m

 

Non-trading

items

US$m

 

 

 

 

 

 

Total

US$m

 

Underlying

business

performance

US$m

 

 

 

Non-trading

items

US$m

 

 

 

 

 

Total

US$m

 

Underlying

business

performance

US$m

 

 

 

Non-trading

items

US$m

 

 

 

 

 

Total

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (note 2)

 

17,492

 

 

 

-

 

 

 

17,492

 

 

 

15,906

 

 

 

-

 

 

 

15,906

 

 

 

32,647

 

 

 

-

 

 

 

32,647

 

 

Net operating costs (note 3)

 

(16,032)

 

 

 

(91)

 

 

 

(16,123)

 

 

 

(14,736)

 

 

 

333

 

 

 

(14,403)

 

 

 

(30,310)

 

 

 

458

 

 

 

(29,852)

 

 

Change in fair value of investment properties

 

-

 

 

 

(1,323)

 

 

 

(1,323)

 

 

 

-

 

 

 

(2,397)

 

 

 

(2,397)

 

 

 

-

 

 

 

(3,477)

 

 

 

(3,477)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

 

1,460

 

 

 

(1,414)

 

 

 

46

 

 

 

1,170

 

 

 

(2,064)

 

 

 

(894)

 

 

 

2,337

 

 

 

(3,019)

 

 

 

(682)

 

 

Net financing charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- financing charges

 

(291)

 

 

 

-

 

 

 

(291)

 

 

 

(343)

 

 

 

-

 

 

 

(343)

 

 

 

(637)

 

 

 

-

 

 

 

(637)

 

 

- financing income

 

106

 

 

 

-

 

 

 

106

 

 

 

117

 

 

 

-

 

 

 

117

 

 

 

242

 

 

 

-

 

 

 

242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(185)

 

 

 

-

 

 

 

(185)

 

 

 

(226)

 

 

 

-

 

 

 

(226)

 

 

 

(395)

 

 

 

-

 

 

 

(395)

 

 

Share of results of associates and joint ventures (note 4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- before change in fair value of investment properties

 

458

 

 

 

17

 

 

 

475

 

 

 

225

 

 

 

(57)

 

 

 

168

 

 

 

844

 

 

 

(268)

 

 

 

576

 

 

- change in fair value of investment properties

 

-

 

 

 

(5)

 

 

 

(5)

 

 

 

-

 

 

 

(135)

 

 

 

(135)

 

 

 

-

 

 

 

(177)

 

 

 

(177)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

458

 

 

 

12

 

 

 

470

 

 

 

225

 

 

 

(192)

 

 

 

33

 

 

 

844

 

 

 

(445)

 

 

 

399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before tax

 

1,733

 

 

 

(1,402)

 

 

 

331

 

 

 

1,169

 

 

 

(2,256)

 

 

 

(1,087)

 

 

 

2,786

 

 

 

(3,464)

 

 

 

(678)

 

 

Tax (note 5)

 

(335)

 

 

 

(6)

 

 

 

(341)

 

 

 

(239)

 

 

 

11

 

 

 

(228)

 

 

 

(483)

 

 

 

(3)

 

 

 

(486)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) after tax

 

1,398

 

 

 

(1,408)

 

 

 

(10)

 

 

 

930

 

 

 

(2,245)

 

 

 

(1,315)

 

 

 

2,303

 

 

 

(3,467)

 

 

 

(1,164)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

    (notes 6 & 7)

 

615

 

 

 

(732)

 

 

 

(117)

 

 

 

373

 

 

 

(1,148)

 

 

 

(775)

 

 

 

1,085

 

 

 

(1,479)

 

 

 

(394)

 

 

Non-controlling interests

 

783

 

 

 

(676)

 

 

 

107

 

 

 

557

 

 

 

(1,097)

 

 

 

(540)

 

 

 

1,218

 

 

 

(1,988)

 

 

 

(770)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,398

 

 

 

(1,408)

 

 

 

(10)

 

 

 

930

 

 

 

(2,245)

 

 

 

(1,315)

 

 

 

2,303

 

 

 

(3,467)

 

 

 

(1,164)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(loss) per share (note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic

 

1.86

 

 

 

 

 

 

 

(0.35)

 

 

 

1.01

 

 

 

 

 

 

 

(2.09)

 

 

 

2.95

 

 

 

 

 

 

 

(1.07)

 

 

- diluted

 

1.86

 

 

 

 

 

 

 

(0.35)

 

 

 

1.01

 

 

 

 

 

 

 

(2.09)

 

 

 

2.95

 

 

 

 

 

 

 

(1.07)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

Year ended

31st

December

 

 

 

 

 

2021

US$m

 

 

 

 

 

2020

US$m

 

 

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

(10)

 

 

 

 

 

(1,315)

 

 

 

 

 

(1,164)

 

 

Other comprehensive income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

 

(5)

 

 

 

 

 

(1)

 

 

 

 

 

6

 

 

Tax on items that will not be reclassified

 

 

1

 

 

 

 

 

(1)

 

 

 

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)

 

 

 

 

 

(2)

 

 

 

 

 

5

 

 

Share of other comprehensive (expense)/income of associates and joint ventures

 

 

(2)

 

 

 

 

 

(3)

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6)

 

 

 

 

 

(5)

 

 

 

 

 

6

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/gain arising during the period

 

 

(275)

 

 

 

 

 

(128)

 

 

 

 

 

712

 

 

- transfer to profit and loss

 

 

-

 

 

 

 

 

6

 

 

 

 

 

(227)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(275)

 

 

 

 

 

(122)

 

 

 

 

 

485

 

 

Revaluation of other investments at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   through other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/gain arising during the period

 

 

(10)

 

 

 

 

 

(3)

 

 

 

 

 

19

 

 

- transfer to profit and loss

 

 

(2)

 

 

 

 

 

(3)

 

 

 

 

 

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12)

 

 

 

 

 

(6)

 

 

 

 

 

15

 

 

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

59

 

 

 

 

 

(60)

 

 

 

 

 

(70)

 

 

- transfer to profit and loss

 

 

6

 

 

 

 

 

4

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65

 

 

 

 

 

(56)

 

 

 

 

 

(65)

 

 

Tax relating to items that may be reclassified

 

 

(18)

 

 

 

 

 

2

 

 

 

 

 

12

 

 

Share of other comprehensive (expense)/income of associates and joint ventures

 

 

(92)

 

 

 

 

 

(401)

 

 

 

 

 

268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(332)

 

 

 

 

 

(583)

 

 

 

 

 

715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (expense)/income for the period, net of tax

 

 

(338)

 

 

 

 

 

(588)

 

 

 

 

 

721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive expense for the period

 

 

(348)

 

 

 

 

 

(1,903)

 

 

 

 

 

(443)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

(249)

 

 

 

 

 

(997)

 

 

 

 

 

74

 

 

Non-controlling interests

 

 

(99)

 

 

 

 

 

(906)

 

 

 

 

 

(517)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(348)

 

 

 

 

 

(1,903)

 

 

 

 

 

(443)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

2,646

 

 

 

2,785

 

 

 

2,695

 

Tangible assets

 

6,513

 

 

 

6,988

 

 

 

6,862

 

Right-of-use assets

 

4,636

 

 

 

5,036

 

 

 

4,768

 

Investment properties

 

32,937

 

 

 

39,707

 

 

 

34,273

 

Bearer plants

 

486

 

 

 

483

 

 

 

497

 

Associates and joint ventures

 

16,582

 

 

 

14,119

 

 

 

16,545

 

Other investments

 

2,847

 

 

 

2,582

 

 

 

2,940

 

Non-current debtors

 

2,997

 

 

 

3,326

 

 

 

3,032

 

Deferred tax assets

 

484

 

 

 

445

 

 

 

485

 

Pension assets

 

9

 

 

 

2

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

70,137

 

 

 

75,473

 

 

 

72,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

 

2,680

 

 

 

2,358

 

 

 

2,339

 

Stocks and work in progress

 

2,656

 

 

 

3,277

 

 

 

2,849

 

Current debtors

 

6,814

 

 

 

6,769

 

 

 

6,753

 

Current investments

 

80

 

 

 

40

 

 

 

61

 

Current tax assets

 

185

 

 

 

174

 

 

 

158

 

Bank balances and other liquid funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

7,280

 

 

 

7,326

 

 

 

8,801

 

- financial services companies

 

358

 

 

 

241

 

 

 

402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,638

 

 

 

7,567

 

 

 

9,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,053

 

 

 

20,185

 

 

 

21,363

 

Asset classified as held for sale

 

20

 

 

 

-

 

 

 

55

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

20,073

 

 

 

20,185

 

 

 

21,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

90,210

 

 

 

95,658

 

 

 

93,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Balance Sheet (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

180

 

 

 

183

 

 

 

181

 

Share premium and capital reserves

 

34

 

 

 

32

 

 

 

31

 

Revenue and other reserves

 

33,771

 

 

 

33,919

 

 

 

34,457

 

Own shares held

 

(6,223)

 

 

 

(5,282)

 

 

 

(5,282)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' funds

 

27,762

 

 

 

28,852

 

 

 

29,387

 

Non-controlling interests

 

28,108

 

 

 

33,433

 

 

 

33,456

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

55,870

 

 

 

62,285

 

 

 

62,843

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

11,144

 

 

 

8,721

 

 

 

8,576

 

- financial services companies

 

1,133

 

 

 

1,426

 

 

 

1,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,277

 

 

 

10,147

 

 

 

9,822

 

Non-current lease liabilities

 

2,953

 

 

 

3,167

 

 

 

3,040

 

Deferred tax liabilities

 

679

 

 

 

728

 

 

 

699

 

Pension liabilities

 

517

 

 

 

471

 

 

 

507

 

Non-current creditors

 

266

 

 

 

407

 

 

 

366

 

Non-current provisions

 

320

 

 

 

306

 

 

 

322

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

17,012

 

 

 

15,226

 

 

 

14,756

 

 

 

 

 

 

 

 

 

 

 

 

 

Current creditors

 

9,661

 

 

 

10,586

 

 

 

8,645

 

Current borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

4,211

 

 

 

4,051

 

 

 

3,945

 

- financial services companies

 

2,054

 

 

 

2,049

 

 

 

1,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,265

 

 

 

6,100

 

 

 

5,875

 

Current lease liabilities

 

798

 

 

 

927

 

 

 

850

 

Current tax liabilities

 

406

 

 

 

358

 

 

 

368

 

Current provisions

 

198

 

 

 

176

 

 

 

189

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

17,328

 

 

 

18,147

 

 

 

15,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

34,340

 

 

 

33,373

 

 

 

30,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

90,210

 

 

 

95,658

 

 

 

93,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Statement of Changes in Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

US$m

 

Share

premium

US$m

 

Capital

reserves

US$m

 

Revenue

reserves

US$m

Asset

revaluation

reserves

US$m

 

Hedging

reserves

US$m

 

Exchange

reserves

US$m

 

Own

shares

held

US$m

Attributable to shareholders of the Company

US$m

Attributable

to non-controlling interests

US$m

 

Total

equity

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2021 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2021

181

 

-

 

31

 

33,497

 

2,167

 

(55)

 

(1,152)

 

(5,282)

 

29,387

 

33,456

 

62,843

Total comprehensive expense

-

 

-

 

-

 

(123)

 

-

 

20

 

(146)

 

-

 

(249)

 

(99)

 

(348)

Dividends paid by the Company (note 8)

-

 

-

 

-

 

(375)

 

-

 

-

 

-

 

-

 

(375)

 

-

 

(375)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(453)

 

(453)

Issue of shares

-

 

3

 

-

 

-

 

-

 

-

 

-

 

-

 

3

 

-

 

3

Employee share option schemes

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Scrip issued in lieu of dividends

-

 

-

 

-

 

112

 

-

 

-

 

-

 

-

 

112

 

-

 

112

Repurchase of shares

(1)

 

(1)

 

-

 

(229)

 

-

 

-

 

-

 

-

 

(231)

 

-

 

(231)

Acquisition of the remaining interest in Jardine Strategic

-

 

-

 

-

 

120

 

-

 

-

 

-

 

(941)

 

(821)

 

(4,751)

 

(5,572)

Change in interests in other subsidiaries

-

 

-

 

-

 

(11)

 

-

 

-

 

-

 

-

 

(11)

 

(24)

 

(35)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(54)

 

-

 

-

 

-

 

-

 

(54)

 

(21)

 

(75)

Transfer

-

 

5

 

(5)

 

27

 

-

 

-

 

(27)

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2021

180

 

7

 

27

 

32,964

 

2,167

 

(35)

 

(1,325)

 

(6,223)

 

27,762

 

28,108

 

55,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On 8th March 2021, the Company announced a plan to simplify the Group's parent company structure, including the acquisition for cash of the 15% of Jardine Strategic Holdings Limited's ('Jardine Strategic') issued share capital that the Company and its wholly-owned subsidiaries did not already own (the 'Acquisition').  The Acquisition was implemented by way of an amalgamation of Jardine Strategic and a wholly-owned subsidiary of the Company, under the Companies Act 1981 of Bermuda.  The total Acquisition value was approximately US$5.6 billion, of which US$5.4 billion had been settled and reflected in the consolidated cash flow statement for the six months ended 30th June 2021.  The Acquisition was financed by the issuance of a US$1.2 billion bond on 9th April 2021, new revolving credit facilities and existing cash resources.

 

The Acquisition was completed on 14th April 2021, following shareholders' approval at the special general meeting on 12th April 2021.  The Acquisition value and the related transaction costs resulted in a reduction of the Group's total equity.

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Statement of Changes in Equity (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

US$m

 

Share

premium

US$m

 

Capital

reserves

US$m

 

Revenue

reserves

US$m

Asset

revaluation

reserves

US$m

 

Hedging

reserves

US$m

 

Exchange

reserves

US$m

 

Own

shares

held

US$m

Attributable to shareholders of the Company

US$m

Attributable

to non-controlling interests

US$m

 

Total

equity

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2020 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2020

183

 

-

 

32

 

34,903

 

2,167

 

(22)

 

(1,630)

 

(5,282)

 

30,351

 

34,720

 

65,071

Total comprehensive income

-

 

-

 

-

 

(779)

 

-

 

(48)

 

(170)

 

-

 

(997)

 

(906)

 

(1,903)

Dividends paid by the Company (note 8)

-

 

-

 

-

 

(474)

 

-

 

-

 

-

 

-

 

(474)

 

83

 

(391)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(439)

 

(439)

Employee share option schemes

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Scrip issued in lieu of dividends

1

 

(1)

 

-

 

97

 

-

 

-

 

-

 

-

 

97

 

-

 

97

Repurchase of shares

(1)

 

-

 

-

 

(126)

 

-

 

-

 

-

 

-

 

(127)

 

-

 

(127)

Subsidiaries disposed of

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(14)

 

(14)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

1

Change in interests in subsidiaries

-

 

-

 

-

 

8

 

-

 

-

 

-

 

-

 

8

 

(8)

 

-

Change in interests in associates and joint ventures

-

 

-

 

-

 

(7)

 

-

 

-

 

-

 

-

 

(7)

 

(4)

 

(11)

Transfer

-

 

1

 

(1)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2020

183

 

-

 

32

 

33,622

 

2,167

 

(70)

 

(1,800)

 

(5,282)

 

28,852

 

33,433

 

62,285

 

Year ended 31st December 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2020

183

 

-

 

32

 

34,903

 

2,167

 

(22)

 

(1,630)

 

(5,282)

 

30,351

 

34,720

 

65,071

Total comprehensive income

-

 

-

 

-

 

(371)

 

-

 

(33)

 

478

 

-

 

74

 

(517)

 

(443)

Dividends paid by the Company

-

 

-

 

-

 

(637)

 

-

 

-

 

-

 

-

 

(637)

 

111

 

(526)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(840)

 

(840)

Unclaimed dividends forfeited

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Issue of shares

-

 

2

 

-

 

-

 

-

 

-

 

-

 

-

 

2

 

-

 

2

Employee share option schemes

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

1

 

2

Scrip issued in lieu of dividends

1

 

(1)

 

-

 

134

 

-

 

-

 

-

 

-

 

134

 

-

 

134

Repurchase of shares

(3)

 

(2)

 

-

 

(549)

 

-

 

-

 

-

 

-

 

(554)

 

-

 

(554)

Subsidiaries disposed of

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(13)

 

(13)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

39

 

39

Change in interests in subsidiaries

-

 

-

 

-

 

18

 

-

 

-

 

-

 

-

 

18

 

(45)

 

(27)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(3)

 

-

 

-

 

-

 

-

 

(3)

 

-

 

(3)

Transfer

-

 

1

 

(2)

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2020

181

 

-

 

31

 

33,497

 

2,167

 

(55)

 

(1,152)

 

(5,282)

 

29,387

 

33,456

 

62,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

Year ended 31st December

 

 

 

2021

US$m

 

 

 

 

2020

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

3,135

 

 

 

2,624

 

 

 

5,930

 

Interest received

 

91

 

 

 

103

 

 

 

209

 

Interest and other financing charges paid

 

(282)

 

 

 

(359)

 

 

 

(692)

 

Tax paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,593

 

 

 

1,865

 

 

 

4,643

 

Dividends from associates and joint ventures

 

325

 

 

 

131

 

 

 

632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

2,918

 

 

 

1,996

 

 

 

5,275

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of subsidiaries

 

-

 

 

 

(21)

 

 

 

(87)

 

Purchase of associates and joint ventures (note 10(a))

 

(276)

 

 

 

(151)

 

 

 

(206)

 

Purchase of other investments (note 10(b))

 

(245)

 

 

 

(220)

 

 

 

(494)

 

Purchase of intangible assets

 

(65)

 

 

 

(64)

 

 

 

(131)

 

Purchase of tangible assets

 

(298)

 

 

 

(338)

 

 

 

(659)

 

Additions to right-of-use assets

 

(19)

 

 

 

(23)

 

 

 

(37)

 

Additions to investment properties (note 10(c))

 

(72)

 

 

 

(4,562)

 

 

 

(4,660)

 

Additions to bearer plants

 

(16)

 

 

 

(16)

 

 

 

(35)

 

Advance to and repayment to associates and joint ventures (note 10(d))

 

 

(223)

 

 

 

 

(139)

 

 

 

(725)

 

Advance from and repayment from associates and joint ventures (note 10(e))

 

432

 

 

 

340

 

 

 

1,437

 

Advance received on conditional sale of a subsidiary in Hongkong Land (note 10(c))

 

-

 

 

 

2,252

 

 

 

-

 

Sale of subsidiaries

 

-

 

 

 

48

 

 

 

2,821

 

Sale of associates and joint ventures (note 10(f))

 

-

 

 

 

1,138

 

 

 

1,138

 

Sale of other investments (note 10(g))

 

203

 

 

 

188

 

 

 

445

 

Sale of intangible assets

 

-

 

 

 

1

 

 

 

1

 

Sale of tangible assets

 

62

 

 

 

29

 

 

 

47

 

Sale of investment properties

 

-

 

 

 

11

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

(517)

 

 

 

(1,527)

 

 

 

(1,134)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares

 

3

 

 

 

-

 

 

 

2

 

Capital contribution from non-controlling interests

 

-

 

 

 

1

 

 

 

39

 

Acquisition of the remaining interest in Jardine Strategic

 

(5,447)

 

 

 

-

 

 

 

-

 

Change in interests in other subsidiaries

 

(35)

 

 

 

-

 

 

 

(27)

 

Purchase of own shares

 

(236)

 

 

 

(127)

 

 

 

(549)

 

Drawdown of borrowings

 

8,953

 

 

 

4,729

 

 

 

7,967

 

Repayment of borrowings

 

(6,008)

 

 

 

(3,581)

 

 

 

(7,557)

 

Principal elements of lease payments

 

(436)

 

 

 

(498)

 

 

 

(962)

 

Dividends paid by the Company

 

(263)

 

 

 

(294)

 

 

 

(392)

 

Dividends paid to non-controlling interests

 

(446)

 

 

 

(289)

 

 

 

(840)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

(1,514)

 

 

 

410

 

 

 

1,822

 

Cash and cash equivalents at beginning of period

 

9,153

 

 

 

7,157

 

 

 

7,157

 

Effect of exchange rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

7,571

 

 

 

7,534

 

 

 

9,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Analysis of Profit Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

Year ended 31st December

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reportable segments

 

 

 

 

 

 

 

 

 

 

 

Jardine Pacific

 

76

 

 

 

53

 

 

 

182

 

Jardine Motors

 

154

 

 

 

61

 

 

 

214

 

Hongkong Land

 

184

 

 

 

151

 

 

 

412

 

Dairy Farm

 

25

 

 

 

69

 

 

 

181

 

Mandarin Oriental

 

(47)

 

 

 

(67)

 

 

 

(138)

 

Jardine Cycle & Carriage

 

56

 

 

 

1

 

 

 

64

 

Astra

 

203

 

 

 

109

 

 

 

197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

651

 

 

 

377

 

 

 

1,112

 

Corporate and other interests

 

(36)

 

 

 

(4)

 

 

 

(27)

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders*

 

615

 

 

 

373

 

 

 

1,085

 

Decrease in fair value of investment properties

 

(691)

 

 

 

(1,155)

 

 

 

(1,424)

 

Other non-trading items

 

(41)

 

 

 

7

 

 

 

(55)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss attributable to shareholders

 

(117)

 

 

 

(775)

 

 

 

(394)

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Jardine Pacific's contribution

 

 

 

 

 

 

 

 

 

 

 

Jardine Schindler

 

17

 

 

 

14

 

 

 

32

 

JEC

 

18

 

 

 

12

 

 

 

51

 

Gammon

 

8

 

 

 

3

 

 

 

38

 

Jardine Restaurants

 

18

 

 

 

15

 

 

 

32

 

Transport Services

 

15

 

 

 

5

 

 

 

24

 

Corporate and other interests

 

-

 

 

 

4

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

76

 

 

 

53

 

 

 

182

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Jardine Motors' contribution

 

 

 

 

 

 

 

 

 

 

 

Hong Kong and Chinese mainland

 

138

 

 

 

89

 

 

 

226

 

United Kingdom

 

16

 

 

 

(28)

 

 

 

(12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

154

 

 

 

61

 

 

 

214

 

 

Underlying profit attributable to shareholders is the measure of profit adopted by the Group in accordance with IFRS 8 'Operating Segments'.

__________________________________________________________________________________________

 

 

 

Jardine Matheson Holdings Limited

Notes to Condensed Financial Statements

 

 

1.    Accounting Policies and Basis of Preparation

 

The condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and on a going concern basis.  The condensed financial statements have not been audited or reviewed by the Group's auditors pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.

 

There are no changes to the accounting policies as described in the 2020 annual financial statements and the Group has not early adopted any standard or amendments that have been issued but not yet effective, except as mentioned below:

 

Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (effective 1st January 2021)

 

The amendments provide practical expedient from certain requirements under the IFRSs as a result of the reform which affect the measurement of financial assets, financial liabilities and lease liabilities, and a number of reliefs for hedging relationships.  The Group applied the amendments from 1st January 2021 and there is no significant impact on the Group's consolidated financial statements.

 

COVID-19 Related Rent Concessions beyond 30th June 2021: Amendment to IFRS 16 Leases (effective 1st April 2021)

 

The Group adopted and applied the practical expedient of the Covid-19 Related Rent Concessions: Amendment to IFRS 16 Leases, published in June 2020 ('2020 amendment'), in the 2020 annual financial statements.  The 2021 amendment extends the practical expedient in the 2020 amendment to eligible lease payments due on or before 30th June 2022.  By using the 2021 amendment, the Group continues to apply the practical expedient consistently to all lease contracts with similar characteristics and in similar circumstances, and does not assess these concessions as lease modifications.

 

 

2.    Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Jardine

 

 

 

 

 

 

 

Jardine

 

Jardine

 

Hongkong

 

Dairy

 

Mandarin

 

Cycle &

 

 

 

Intersegment

 

 

 

Pacific

 

Motors

 

Land

 

Farm

 

Oriental

 

Carriage

 

Astra

 

transactions

 

Group

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product and service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

2

 

-

 

886

 

-

 

-

 

-

 

24

 

(5)

 

907

Motor vehicles

-

 

3,042

 

-

 

-

 

-

 

803

 

2,989

 

(6)

 

6,828

Retail and restaurants

427

 

-

 

-

 

4,537

 

-

 

-

 

-

 

-

 

4,964

Financial services

-

 

-

 

-

 

-

 

-

 

-

 

839

 

-

 

839

Engineering, heavy equipment, mining and construction

 

239

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,593

 

 

(19)

 

 

2,813

Hotels

-

 

-

 

-

 

-

 

102

 

-

 

-

 

-

 

102

Other

-

 

-

 

-

 

-

 

-

 

-

 

1,039

 

-

 

1,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

668

 

3,042

 

886

 

4,537

 

102

 

803

 

7,484

 

(30)

 

17,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognised at a point in time

458

 

3,040

 

46

 

4,537

 

37

 

770

 

6,433

 

(6)

 

15,315

Recognised over time

208

 

2

 

287

 

-

 

55

 

32

 

109

 

(19)

 

674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

666

 

3,042

 

333

 

4,537

 

92

 

802

 

6,542

 

(25)

 

15,989

Revenue from other sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income from investment properties

 

2

 

 

-

 

 

470

 

 

-

 

 

-

 

 

-

 

 

6

 

 

(5)

 

 

473

Revenue from financial services companies

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

839

 

 

-

 

 

839

Other

-

 

-

 

83

 

-

 

10

 

1

 

97

 

-

 

191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

-

 

553

 

-

 

10

 

1

 

942

 

(5)

 

1,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

668

 

3,042

 

886

 

4,537

 

102

 

803

 

7,484

 

(30)

 

17,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product and service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

2

 

-

 

820

 

-

 

-

 

-

 

37

 

(5)

 

854

Motor vehicles

-

 

2,127

 

-

 

-

 

-

 

514

 

2,169

 

(6)

 

4,804

Retail and restaurants

401

 

-

 

-

 

5,240

 

-

 

-

 

-

 

-

 

5,641

Financial services

-

 

-

 

-

 

-

 

-

 

-

 

716

 

-

 

716

Engineering, heavy equipment, mining and construction

 

270

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,245

 

 

(20)

 

 

2,495

Hotels

-

 

-

 

-

 

-

 

96

 

-

 

-

 

-

 

96

Other

387

 

-

 

-

 

-

 

-

 

-

 

913

 

-

 

1,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,060

 

2,127

 

820

 

5,240

 

96

 

514

 

6,080

 

(31)

 

15,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognised at a point in time

822

 

2,126

 

102

 

5,240

 

38

 

487

 

5,147

 

(6)

 

13,956

Recognised over time

236

 

1

 

184

 

-

 

50

 

27

 

123

 

(20)

 

601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,058

 

2,127

 

286

 

5,240

 

88

 

514

 

5,270

 

(26)

 

14,557

Revenue from other sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income from investment properties

 

2

 

 

-

 

 

466

 

 

-

 

 

-

 

 

-

 

 

5

 

 

(5)

 

 

468

Revenue from financial services companies

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

713

 

 

-

 

 

713

Other

-

 

-

 

68

 

-

 

8

 

-

 

92

 

-

 

168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

-

 

534

 

-

 

8

 

-

 

810

 

(5)

 

1,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,060

 

2,127

 

820

 

5,240

 

96

 

514

 

6,080

 

(31)

 

15,906

 

 

Gross revenue, comprises revenue together with 100% of revenue from associates and joint ventures, are analysed as follows:

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

2,615

 

 

 

3,032

 

 

Jardine Motors

 

16,110

 

 

 

11,777

 

 

Hongkong Land

 

2,410

 

 

 

1,443

 

 

Dairy Farm

 

13,950

 

 

 

14,547

 

 

Mandarin Oriental

 

168

 

 

 

167

 

 

Jardine Cycle & Carriage

 

3,253

 

 

 

3,039

 

 

Astra

 

14,114

 

 

 

11,049

 

 

Intersegment transactions

 

(132)

 

 

 

(118)

 

 

 

 

 

 

 

 

 

 

 

 

 

52,488

 

 

 

44,936

 

 

 

3.    Net Operating Costs

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(13,210)

 

 

 

(11,851)

 

 

Other operating income

 

282

 

 

 

774

 

 

Selling and distribution costs

 

(1,970)

 

 

 

(2,101)

 

 

Administration expenses

 

(1,092)

 

 

 

(1,081)

 

 

Other operating expenses

 

(133)

 

 

 

(144)

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,123)

 

 

 

(14,403)

 

 

 

 

 

 

 

 

 

 

 

In relation to the COVID-19 pandemic, the Group had received government grants and rent concessions of US$34 million (2020: US$76 million) and US$26 million (2020: US$35 million), respectively, for the six months ended 30th June 2021.  These subsidies were accounted for as other operating income.

 

 

 

 

 

 

 

 

 

 

 

Net operating costs included the following gains/(losses) from non-trading items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of other investments

 

(56)

 

 

 

(91)

 

 

Sale of businesses

 

-

 

 

 

417

 

 

Sale of property interests

 

-

 

 

 

10

 

 

Restructuring of businesses

 

(35)

 

 

 

-

 

 

Other

 

-

 

 

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

(91)

 

 

 

333

 

 

4.    Share of Results of Associates and Joint Ventures

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

49

 

 

 

(35)

 

 

Jardine Motors

 

93

 

 

 

70

 

 

Hongkong Land

 

115

 

 

 

(90)

 

 

Dairy Farm

 

(28)

 

 

 

16

 

 

Mandarin Oriental

 

(15)

 

 

 

(14)

 

 

Jardine Cycle & Carriage

 

62

 

 

 

17

 

 

Astra

 

202

 

 

 

74

 

 

Corporate

 

(8)

 

 

 

(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

470

 

 

 

33

 

 

 

 

 

 

 

 

 

 

 

Share of results of associates and joint ventures included the following gains/(losses) from non-trading items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

(4)

 

 

 

(135)

 

 

Change in fair value of other investments

 

29

 

 

 

12

 

 

Asset impairment

 

(14)

 

 

 

(67)

 

 

Other

 

1

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

(192)

 

 

Results are shown after tax and non-controlling interests in the associates and joint ventures.

 

In relation to the COVID-19 pandemic, included in share of results of associates and joint ventures were the Group's share of the government grants and rent concessions of US$13 million (2020: US$31 million) and US$10 million (2020: US$17 million), respectively, for the six months ended 30th June 2021.

 

5.    Tax

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax charged to profit and loss is analysed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current tax

 

(379)

 

 

 

(270)

 

 

Deferred tax

 

38

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

(341)

 

 

 

(228)

 

 

 

 

 

 

 

 

 

 

 

China

 

(106)

 

 

 

(74)

 

 

Southeast Asia

 

(220)

 

 

 

(150)

 

 

United Kingdom

 

(4)

 

 

 

5

 

 

Rest of the world

 

(11)

 

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

(341)

 

 

 

(228)

 

 

 

 

 

 

 

 

 

 

 

Tax relating to components of other comprehensive income or expense is analysed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

1

 

 

 

(1)

 

 

Cash flow hedges

 

(18)

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

(17)

 

 

 

1

 

 

Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.

 

Share of tax charge of associates and joint ventures of US$160 million (2020: US$99 million) is included in share of results of associates and joint ventures.  Share of tax charge of US$8 million (2020: tax credit of US$19 million) is included in other comprehensive income of associates and joint ventures.

 

 

6.    Earnings/(Loss) per Share

 

Basic loss per share are calculated on loss attributable to shareholders of US$117 million (2020: US$775 million) and on the weighted average number of 331 million (2020: 371 million) shares in issue during the period.

 

Diluted loss per share are calculated on loss attributable to shareholders of US$117 million (2020: US$775 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiaries and on the weighted average number of 331 million (2020: 371 million) shares in issue during the period.

 

The weighted average number of shares is arrived at as follows:

 

 

 

 

Ordinary shares

in millions

 

 

 

 

2021

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares in issue

 

721

 

 

 

733

 

 

Company's share of shares held by subsidiaries

 

(390)

 

 

 

(362)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for basic earnings

per share calculation

 

331

 

 

 

371

 

 

Adjustment for shares deemed to be issued for no consideration under the Senior Executive Share

Incentive Schemes

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for diluted earnings per share calculation

 

331

 

 

 

371

 

 

Additional basic and diluted earnings per share are also calculated based on underlying profit attributable to shareholders.  A reconciliation of earnings is set out below:

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

US$m

 

 

Basic

(loss)/

earnings per share US$

 

 

Diluted (loss)/  earnings per share

US$

 

 

US$m

 

 

Basic

(loss)/

earnings per share

US$

 

 

Diluted (loss)/  earnings per share

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss attributable to shareholders

 

(117)

 

 

(0.35)

 

 

(0.35)

 

 

(775)

 

 

(2.09)

 

 

(2.09)

 

 

Non-trading items (note 7)

 

732

 

 

 

 

 

 

 

 

1,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders

 

615

 

 

1.86

 

 

1.86

 

 

373

 

 

1.01

 

 

1.01

 

 

 

7.    Non-trading items

 

Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance.  Items classified as non-trading items include fair value gains or losses on revaluation of investment properties and on equity investments which are measured at fair value through profit and loss; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets, associates and joint ventures and other investments; provisions for the closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

16

 

 

 

(49)

 

 

Hongkong Land

 

(635)

 

 

 

(933)

 

 

Dairy Farm

 

(12)

 

 

 

7

 

 

Mandarin Oriental

 

(71)

 

 

 

(222)

 

 

Jardine Cycle & Carriage

 

(84)

 

 

 

(15)

 

 

Astra

 

2

 

 

 

119

 

 

Corporate and other interests

 

52

 

 

 

(55)

 

 

 

 

 

 

 

 

 

 

 

 

 

(732)

 

 

 

(1,148)

 

 

 

 

 

 

 

 

 

 

 

An analysis of non-trading items after interest, tax and non-controlling interests is set out below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

 

 

 

 

 

 

 

- Hongkong Land

 

(635)

 

 

 

(933)

 

 

- other

 

(56)

 

 

 

(222)

 

 

 

 

(691)

 

 

 

(1,155)

 

 

Change in fair value of other investments

 

(1)

 

 

 

(63)

 

 

Asset impairment

 

(11)

 

 

 

(57)

 

 

Sale of businesses

 

-

 

 

 

119

 

 

Sale of property interests

 

-

 

 

 

10

 

 

Restructuring of businesses

 

(25)

 

 

 

-

 

 

Other

 

(4)

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(732)

 

 

 

(1,148)

 

 

 

 

 

 

 

 

 

 

 

 

8.    Dividends

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

US$m

 

 

 

2020

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final dividend in respect of 2020 of US¢128.00

(2019: US¢128.00) per share

 

921

 

 

 

938

 

 

Company's share of dividends paid on the shares held by subsidiaries

 

(546)

 

 

 

(464)

 

 

 

 

 

 

 

 

 

 

 

 

 

375

 

 

 

474

 

 

An interim dividend in respect of 2021 of US¢44.00 (2020: US¢44.00) per share amounting to a total of US$318 million (2020: US$322 million) is declared by the Board.  The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiaries of US$188 million (2020: US$159 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2021.

 

 

9.    Financial Instruments

 

Financial instruments by category

 

The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2021 and 31st December 2020 are as follows:

 

 

 

 

 

Fair value of hedging instruments

US$m

 

Fair value through profit and loss

US$m

 

 

Fair value through other comprehensive income

US$m

 

Financial assets at amortised costs

US$m

 

 

Other financial liabilities

US$m

 

 

Total

carrying

amount

US$m

 

 

Fair

value

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30th June 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- equity investments

 

-

 

 

2,145

 

 

-

 

 

-

 

 

-

 

 

2,145

 

 

2,145

 

 

- debt investments

 

-

 

 

-

 

 

729

 

 

-

 

 

-

 

 

729

 

 

729

 

 

- LP investment funds

 

-

 

 

53

 

 

-

 

 

-

 

 

-

 

 

53

 

 

53

 

 

Derivative financial instruments

 

58

 

 

-

 

 

-

 

 

-

 

 

-

 

 

58

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58

 

 

2,198

 

 

729

 

 

-

 

 

-

 

 

2,985

 

 

2,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debtors

 

-

 

 

-

 

 

-

 

 

7,904

 

 

-

 

 

7,904

 

 

7,938

 

 

Bank balances

 

-

 

 

-

 

 

-

 

 

7,638

 

 

-

 

 

7,638

 

 

7,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

-

 

 

-

 

 

15,542

 

 

-

 

 

15,542

 

 

15,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

(81)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

(81)

 

 

(81)

 

 

Contingent consideration payable

 

-

 

 

(9)

 

 

-

 

 

-

 

 

-

 

 

(9)

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(81)

 

 

(9)

 

 

-

 

 

-

 

 

-

 

 

(90)

 

 

(90)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities not measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

-

 

 

-

 

 

-

 

 

-

 

 

(18,542)

 

 

(18,542)

 

 

(18,625)

 

 

Lease liabilities

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,751)

 

 

(3,751)

 

 

(3,751)

 

 

Trade and other

payable excluding non-financial liabilities

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

(6,733)

 

 

(6,733)

 

 

(6,733)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(29,026)

 

 

(29,026)

 

 

(29,109)

 

 

 

Financial instruments by category

 

 

 

 

 

Fair value of hedging instruments

US$m

 

Fair value through profit and loss

US$m

 

 

Fair value through other comprehensive income

US$m

 

Financial assets at amortised costs

US$m

 

 

Other financial liabilities

US$m

 

 

Total

carrying

amount

US$m

 

 

Fair

value

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31st December 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- equity investments

 

-

 

 

2,278

 

 

-

 

 

-

 

 

-

 

 

2,278

 

 

2,278

 

 

- debt investments

 

-

 

 

-

 

 

698

 

 

-

 

 

-

 

 

698

 

 

698

 

 

- LP investment funds

 

-

 

 

25

 

 

-

 

 

-

 

 

-

 

 

25

 

 

25

 

 

Derivative financial instruments

 

46

 

 

-

 

 

-

 

 

-

 

 

-

 

 

46

 

 

46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46

 

 

2,303

 

 

698

 

 

-

 

 

-

 

 

3,047

 

 

3,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debtors

 

-

 

 

-

 

 

-

 

 

7,705

 

 

-

 

 

7,705

 

 

7,918

 

 

Bank balances

 

-

 

 

-

 

 

-

 

 

9,203

 

 

-

 

 

9,203

 

 

9,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

-

 

 

-

 

 

16,908

 

 

-

 

 

16,908

 

 

17,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

(209)

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

(209)

 

 

(209)

 

 

Contingent consideration payable

 

-

 

 

(9)

 

 

-

 

 

-

 

 

-

 

 

(9)

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(209)

 

 

(9)

 

 

-

 

 

-

 

 

-

 

 

(218)

 

 

(218)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities not measured at
fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

-

 

 

-

 

 

-

 

 

-

 

 

(15,697)

 

 

(15,697)

 

 

(16,018)

 

 

Lease liabilities

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,890)

 

 

(3,890)

 

 

(3,885)