Regulatory Story
Go to market news section View chart   Print
RNS
Jardine Strategic Hldgs Ltd  -  JDS   

Half Yearly Results

Released 10:22 04-Aug-2017

RNS Number : 9962M
Jardine Strategic Hldgs Ltd
04 August 2017
 

 

To: Business Editor                                                                              4th August 2017

                                                                                                             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 Strategic Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2017

 

Highlights

·     Underlying profit up 19%

·     Good performances from most Group companies

·     Strong financial position maintained

 

"Good trading is expected to continue in a number of the Group's businesses in the remainder of the year, although the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the Group's automotive markets."

 

Sir Henry Keswick, Chairman

 

Results

                                                                                             (unaudited)

Six months ended 30th June

 

 

 

2017 US$m

2016

US$m

Change

%

Gross revenue including 100% of Jardine Matheson, associates and joint ventures

38,072

34,569

+10

Revenue

15,606

14,334

+9

Underlying profit* attributable to shareholders

787

664

+19

Profit attributable to shareholders

2,227

1,088

+105

 

US$

US$

%

Underlying earnings per share*

1.35

1.12

+21

Earnings per share

3.83

1.84

+108

Net asset value per share†      

60.31

53.25

+13

 

US¢

US¢

%

Interim dividend per share

9.50

9.00

+6

* 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 9 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 2017 and 31st December 2016, respectively.  Net asset value per share is calculated on a market value basis, details of which are set out in note 15 to the condensed financial statements.

The interim dividend of US¢9.50 per share will be payable on 19th October 2017 to shareholders on the register of

members at the close of business on 25th August 2017 and will be available in cash with a scrip alternative.

 

Jardine Strategic Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2017

 

Overview

Jardine Strategic benefited from good performances from many of its businesses and produced strong growth in underlying profit for the first half of 2017.

 

Results

Underlying profit for the period rose 19% to US$787 million, and underlying earnings per share were up 21% at US$1.35.  The revenue of the Group for the first six months of 2017 was 9% higher at US$15.6 billion, while revenue, including 100% of Jardine Matheson, associates and joint ventures, was up 10% at US$38.1 billion.  

 

Hongkong Land's commercial interests performed well and it recorded a higher level of sale completions in its development properties.  Astra benefited from better results from across its businesses, while Permata Bank returned to profit.  Jardine Matheson saw improvements in its directly held businesses.  Dairy Farm's trading was mixed, although it did achieve higher profit contributions from certain businesses.  Mandarin Oriental's results were impacted primarily by its London hotel renovation, while the contributions from Jardine Cycle & Carriage's non-Astra interests were lower.

 

Non-trading items in the first half represented a gain of US$1,440 million, primarily US$111 million in respect of profits on property disposals and US$1,311 million from revaluations of investment properties, compared with a non-trading gain of US$424 million in the first half of 2016.  Accordingly, the Group's profit attributable to shareholders for the period was US$2,227 million for the six months under review, compared with US$1,088 million in 2016.

 

The Board has declared an increased interim dividend of US¢9.50 per share.

 

Business Developments

During the first half of the year the Company made additional investments in mainland Chinese businesses in support of the Group's overall development.  In June, a 28% stake was acquired in Hong Kong-listed Greatview, the third-largest supplier of aseptic carton packaging globally, for a total cost of some US$246 million.  This interest is now being managed as part of the Jardine Pacific portfolio of businesses within Jardine Matheson. 

 

Following the redemption of convertible bonds issued by Zhongsheng, the Company subscribed for additional shares increasing its interest by some 5% to 20%.  Zhongsheng, as well as Jardine Motors, are currently benefiting from the strong trading conditions in the new car market on the mainland.

 

Jardine Matheson held JLT made further progress with the development of its Specialty business in the United States, with revenues more than doubling due to strong organic growth and a first contribution from the recently acquired Construction Risk Partners.  

 

Hongkong Land's WF Central project in Wangfujing, Beijing is nearing completion, with the luxury retail component opening later this year and the Mandarin Oriental hotel following in 2018.  In Jakarta, the fifth tower at its Jakarta Land joint venture will be ready early next year, while its prime mixed-use complex in Phnom Penh has been completed.  In June, the group agreed to purchase a one-third interest in a development site within the Marina Bay Financial District in Singapore, which will be connected to its existing portfolio in the district.  In addition, the group has entered two new cities in mainland China with mixed-use development projects in Wuhan and Nanjing.

 

In July, Dairy Farm agreed to increase its ownership in Rustan's in the Philippines to 100% with the acquisition of the remaining 34% interest from its joint venture partner.  Dairy Farm is continuing to improve its appeal to customers across its range of formats through its investment in technology, supply chain infrastructure, stores and people.

 

Mandarin Oriental has announced a number of management contracts, including a hotel operating in Santiago, Chile, and three new hotels with branded residences being developed in Dubai, Honolulu and Melbourne which will open between 2020 and 2022.  Following an announcement in June, Mandarin Oriental is pursuing strategic options for its wholly-owned hotel, The Excelsior in Hong Kong, which include the possible sale of the property for redevelopment. 

 

During the period under review, Jardine Cycle & Carriage supported a US$500 million rights issue by Siam City Cement, and subsequently increased its shareholding in the Thai cement manufacturer to 25.5%.

 

Astra returned to profit growth as its net profit rose 31% under Indonesian accounting standards.  Its automotive operations did well, despite increasing competition in the car market and soft demand for motorcycles, with its market shares rising to 56% for cars and 74% for motorcycles.  Improvements in Permata Bank enabled it to produce a profit following a challenging year in 2016, and in June it completed a further US$220 million rights issue. Stronger commodity prices led to better performances from the group's heavy equipment and mining operations as well as its agribusiness activities.

 

Outlook

Good trading is expected to continue in a number of the Group's businesses in the remainder of the year, although the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the Group's automotive markets.

 

Sir Henry Keswick

Chairman

 

Operating Review

 

Jardine Matheson

Jardine Matheson produced an underlying profit for the first six months of 2017 of US$765 million, an increase of 20% over the same period in 2016.  Non-trading items in the first half represented a gain of US$1,313 million, giving a profit attributable to shareholders of US$2,078 million for the six months under review, compared with US$984 million in 2016. Shareholders' funds rose to US$23.9 billion during the first six months of the year.

 

·     Jardine Pacific

Jardine Pacific achieved good earnings growth for the first half of 2017 with underlying profit up 26% at US$68 million following stronger performances in most of its operations. Jardine Schindler benefited from continued growth in new installations and in its maintenance portfolio, while JEC's businesses in Hong Kong traded well.  Gammon's profit improved as the comparable period had been impacted by project timings.  Trading momentum continued for Jardine Restaurants in Taiwan and Vietnam, but Hong Kong remained challenging.  Increased cargo throughput enabled HACTL to produce a better performance.  JTH Group's profit, however, was eroded in a weak IT market.  Jardine Pacific's business portfolio now includes a 28% stake in Greatview Aseptic Packaging Company Limited.

 

·     Jardine Motors

Jardine Motors produced an excellent result in the first half of 2017 with its underlying profit 45% higher at US$83 million.  The result includes a contribution from Zhongsheng, in which Jardine Strategic now holds a 20% interest.  Profit attributable to shareholders was US$286 million after accounting for a US$203 million gain, principally arising from the sale of a property by Zung Fu.  In mainland China, trading results from both Zung Fu and Zhongsheng were strong with good volume growth and improved margins.  Zung Fu's performance in Hong Kong was stable, and work is continuing on its new showroom and workshop facilities, which will complete in mid-2018.  In the United Kingdom, the performance was softer compared with 2016, when the results had also benefited from a gain on the sale of a dealership.

 

·     Jardine Lloyd Thompson

JLT produced a good performance in what remained challenging trading conditions throughout the period.  Total revenue was US$877 million, an increase of 11% in its reporting currency, representing 3% organic growth.  Underlying trading profit was US$140 million, an increase of 12% in its reporting currency, or 3% at constant rates of exchange.  JLT's Risk & Insurance businesses recorded revenue growth of 12%, with good performances in JLT Europe, JLT Re, Latin America, Asia and the United States.  The combined Employee Benefits businesses saw headline revenue growth of 8%, driven primarily by the strong performance of its UK Employee Benefits business, with revenues increasing by 9%, following its successful restructuring in 2016.

 

Hongkong Land

Hongkong Land's underlying profit attributable to shareholders for the first six months was US$517 million, up 32%.  The profit attributable to shareholders was US$3,125 million after accounting for a net gain of US$2,608 million arising on the revaluation of investment properties.  This compares with a profit of US$1,263 million in the first half of 2016, after a net revaluation gain of US$870 million.

 

The group's investment properties produced an increased contribution from the higher average rents achieved in Hong Kong.  Vacancy in Hongkong Land's Central office portfolio at 30th June 2017 was 1.5%, compared with 2.2% at the end of 2016, while the retail portfolio was almost fully occupied.  In Singapore, the performance of its office portfolio reflected the current relative surplus of market supply, although vacancy at the end of June was only 0.2% compared with 0.1% at the end of 2016, with a slight decrease in average rents.

 

Within Hongkong Land's development properties, being residential and mixed-use projects developed for sale in the short to medium-term, mainland China benefited from further sale completions and positive market sentiment leading to both an improved profit contribution and an increase in contracted sales.  At 30th June, the group had US$1,421 million in sold but unrecognized contracted sales, compared with US$1,083 million at the end of 2016. Results from Singapore reflected the completion of the 699-unit LakeVille project, compared with no completions in the first half of 2016, and the pre-sales continuing in two other projects were satisfactory.  Progress is being made in the group's other developments in Indonesia and the Philippines.

 

Dairy Farm

Dairy Farm's sales for the period by its subsidiaries were marginally behind last year, although flat at constant exchange rates, as declines within supermarkets and hypermarkets in the Food division were offset by sales growth in all its other divisions.  Underlying net profit was up 6% at US$211 million, with reductions in the Food division being more than compensated for by strong results from Yonghui and Maxim's in addition to improved performances from the Health and Beauty and Home Furnishings divisions.

 

In the Food division, continuing softness in certain key markets led to sales within supermarkets and hypermarkets being 3% lower at constant exchange rates and profits declining.  The group's convenience store operations traded well, and strong growth in sales and profit were achieved by Yonghui in mainland China.  In the Health and Beauty division, progress was made in Hong Kong, Macau, mainland China and Indonesia, although more challenging conditions were experienced in Singapore and Malaysia.  In Home Furnishings, IKEA performed well, driven by strong sales in Taiwan and Indonesia.  In the Restaurants division, Maxim's delivered further growth as it continues to expand its regional presence and range of franchises.

 

Dairy Farm is continuing its programme of investment in its technology backbone, supply chain infrastructure, stores and people.  These initiatives are supporting the expansion of the range of fresh produce and own brand products on offer, together with the introduction of enhanced e-commerce offers in many of its businesses and the innovation of new store formats in most markets.  By improving the shopping experience of its customers and meeting their changing requirements, Dairy Farm is underpinning its future growth.

 

Mandarin Oriental

Mandarin Oriental's underlying profit for the first half was US$15 million, compared with US$25 million in 2016.  Profit attributable to shareholders was also US$15 million, while in 2016 it was US$23 million.  Earnings were lower during the period due to the impact of the ongoing phased renovation of its London hotel, which will complete in the second quarter of 2018, and the inclusion of a traditionally weaker first quarter result in its Boston hotel following its acquisition in April 2016.  While reduced contributions were seen from Jakarta and New York, these were offset by better performances in Paris, Munich and Washington. Results across the rest of the portfolio, including Hong Kong, were broadly stable.

 

Mandarin Oriental currently operates 30 hotels and eight residences in 20 countries and territories, and has a strong pipeline of hotels and residences under development.  Following an announcement in June, the group is pursuing strategic options for The Excelsior, Hong Kong, which include the possible sale of the property for redevelopment.  The wholly-owned property, which is the group's only four star hotel, is situated on a prime commercial site that has approval for the development of a commercial building.

 

Jardine Cycle & Carriage

Jardine Cycle & Carriage reported an underlying profit for the period of US$375 million, up 13%, while its profit attributable to shareholders of US$399 million was up 22% with the benefit of non-trading gains.  Astra's contribution to the underlying profit rose 27% to US$315 million.  The contribution from the company's Direct Motor Interests was 20% lower at US$63 million, while Other Interests produced a contribution of US$8 million, down 46% compared with the first half of 2016.

 

The weaker result in the Direct Motor Interests reflects the impact of increasing competition, particularly for Truong Hai Auto Corporation in Vietnam.  While in Singapore, Cycle & Carriage's earnings improved, results were also lower for Cycle & Carriage Bintang in Malaysia and Tunas Ridean in Indonesia.  For the group's Other Interests, the 25.5%-held Siam City Cement reported a 69% decline in profit mainly due to lower prices and sales volumes in the Thai market and one-off expenses, partly offset by contributions from recent acquisitions in Sri Lanka and Vietnam.  Refrigeration Electrical Engineering Corporation in Vietnam, which is 22.9%-held, performed better with improvements in most of its businesses. 

 

Astra

Astra reported a net profit equivalent to US$702 million under Indonesian accounting standards, up 31% in its reporting currency, with improvements seen in most businesses.  The group's automotive operations performed well with market shares for both cars and motorcycles rising, although it faced discount pressure as competition increased in the car market, and soft demand for motorcycles.  Better results were seen from financial services with a return to profit by Permata Bank.  Higher commodity prices benefited the heavy equipment and mining operations, as well as Astra's agribusiness activities.  Information technology, and infrastructure and logistics saw declines in earnings.

 

Net income from Astra's automotive business increased by 9%, largely due to improved car sales.  The wholesale market for cars in Indonesia grew marginally to 534,000 units, while the group's car sales were up 9% at 298,000 units, resulting in its market share rising from 51% to 56%.  The wholesale market for motorcycles contracted by 9% to 2.7 million units, while Astra Honda Motor's domestic sales fell by 7% to 2.0 million units, with its market share increasing from 73% to 74%.  Net income rose 30% in its components business, Astra Otoparts.

 

Within Astra's financial services business, net income rose 62% to US$153 million with better contributions from most activities.  The consumer finance businesses saw the aggregate amount financed increase by 8% to US$2.9 billion, while heavy equipment financing was up 68% to US$237 million.  Permata Bank's financial position stabilized and it reported a net income of US$47 million for the period compared with a net loss of US$62 million in the first half of 2016.  The bank benefited from an improvement in asset quality and the sale of a portfolio of its non-performing loans.  Asuransi Astra Buana, the group's general insurance company, reported net income up 24% due to higher underwriting and investment income, while Astra Aviva Life continued to grow its customer base.

 

United Tractors, which is 60%-owned, reported net income up 85% at US$257 million, as its businesses benefited from increased coal prices.  In construction machinery, Komatsu heavy equipment sales were up 69% and revenues from parts and service also rose.  Mining contracting within Pamapersada Nusantara recorded increases of 4% in coal production and 6% in overburden removal, although United Tractors' mining subsidiaries saw coal sales reduce by 18% to 3.6 million tonnes.  Acset Indonusa, the 50%-held general contractor, reported improved earnings and contracts worth US$536 million secured during the period. Bhumi Jati Power, which is 25%-owned, is constructing two power plants in Central Java that are scheduled to start commercial operations in 2021, while Suprabari Mapanindo Mineral, an 80%-owned coking coal company in Central Kalimantan, is expected to start production by the end of 2017.

 

Astra Agro Lestari, which is 80%-owned, saw its net income rise during the period by 32% to US$78 million.  Revenue benefited from higher crude palm oil prices and increased production.  Average crude palm oil prices achieved were up 16%, while sales of crude palm oil and its derivatives rose 10% to 833,000 tonnes.

 

The contribution from Astra's infrastructure and logistics business was down 21% to US$8 million, mainly due to initial losses arising on toll roads and lower earnings from its water utility business following a 3% decrease in sales.  The group continues to develop its toll road activities which, including interests in 51km of greenfield sites, now extend to 353km.  Serasi Autoraya's net income rose due to higher net margins in its car leasing and rental business.

 

Astra's information technology business saw lower earnings as Astra Graphia reported net income down 25% at US$5 million, mainly due to lower revenue from its IT solutions business.  Within Astra's property activities, net income reflected improved development earnings recognized under Indonesian accounting standards on its Anandamaya Residences development, which will complete in 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Profit and Loss Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

Year ended 31st December

 

 

 

2017

 

 

 

2016

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

15,606

 

 

 

-

 

 

 

15,606

 

 

 

14,334

 

 

 

-

 

 

 

14,334

 

 

 

29,552

 

 

 

-

 

 

 

29,552

 

Net operating costs (note 3)

 

(14,143)

 

 

 

13

 

 

 

(14,130)

 

 

 

(13,055)

 

 

 

(6)

 

 

 

(13,061)

 

 

 

(26,686)

 

 

 

23

 

 

 

(26,663)

 

Change in fair value of investment

properties

 

-

 

 

 

2,694

 

 

 

2,694

 

 

 

-

 

 

 

986

 

 

 

986

 

 

 

-

 

 

 

2,558

 

 

 

2,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,463

 

 

 

2,707

 

 

 

4,170

 

 

 

1,279

 

 

 

980

 

 

 

2,259

 

 

 

2,866

 

 

 

2,581

 

 

 

5,447

 

Net financing charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- financing charges

 

(156)

 

 

 

-

 

 

 

(156)

 

 

 

(135)

 

 

 

-

 

 

 

(135)

 

 

 

(279)

 

 

 

-

 

 

 

(279)

 

- financing income

 

83

 

 

 

-

 

 

 

83

 

 

 

68

 

 

 

-

 

 

 

68

 

 

 

144

 

 

 

-

 

 

 

144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(73)

 

 

 

-

 

 

 

(73)

 

 

 

(67)

 

 

 

-

 

 

 

(67)

 

 

 

(135)

 

 

 

-

 

 

 

(135)

 

Share of results of Jardine Matheson

(note 4)

 

117

 

 

 

118

 

 

 

235

 

 

 

91

 

 

 

(7)

 

 

 

84

 

 

 

202

 

 

 

31

 

 

 

233

 

Share of results of associates and joint

ventures (note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- before change in fair value of

investment properties

 

499

 

 

 

9

 

 

 

508

 

 

 

329

 

 

 

-

 

 

 

329

 

 

 

589

 

 

 

35

 

 

 

624

 

- change in fair value of investment

properties

 

-

 

 

 

(56)

 

 

 

(56)

 

 

 

-

 

 

 

(121)

 

 

 

(121)

 

 

 

-

 

 

 

(56)

 

 

 

(56)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

499

 

 

 

(47)

 

 

 

452

 

 

 

329

 

 

 

(121)

 

 

 

208

 

 

 

589

 

 

 

(21)

 

 

 

568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

2,006

 

 

 

2,778

 

 

 

4,784

 

 

 

1,632

 

 

 

852

 

 

 

2,484

 

 

 

3,522

 

 

 

2,591

 

 

 

6,113

 

Tax (note 6)

 

(343)

 

 

 

(3)

 

 

 

(346)

 

 

 

(291)

 

 

 

1

 

 

 

(290)

 

 

 

(605)

 

 

 

(5)

 

 

 

(610)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

1,663

 

 

 

2,775

 

 

 

4,438

 

 

 

1,341

 

 

 

853

 

 

 

2,194

 

 

 

2,917

 

 

 

2,586

 

 

 

5,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

(notes 7 & 9)

 

787

 

 

 

1,440

 

 

 

2,227

 

 

 

664

 

 

 

424

 

 

 

1,088

 

 

 

1,438

 

 

 

1,303

 

 

 

2,741

 

Non-controlling interests

 

876

 

 

 

1,335

 

 

 

2,211

 

 

 

677

 

 

 

429

 

 

 

1,106

 

 

 

1,479

 

 

 

1,283

 

 

 

2,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,663

 

 

 

2,775

 

 

 

4,438

 

 

 

1,341

 

 

 

853

 

 

 

2,194

 

 

 

2,917

 

 

 

2,586

 

 

 

5,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic

 

1.35

 

 

 

 

 

 

 

3.83

 

 

 

1.12

 

 

 

 

 

 

 

1.84

 

 

 

2.45

 

 

 

 

 

 

 

4.67

 

- diluted

 

1.35

 

 

 

 

 

 

 

3.83

 

 

 

1.12

 

 

 

 

 

 

 

1.84

 

 

 

2.45

 

 

 

 

 

 

 

4.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

Year ended

31st

December

 

 

 

 

 

2017

US$m

 

 

 

 

2016

US$m

 

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

4,438

 

 

 

 

 

2,194

 

 

 

 

 

5,503

 

 

Other comprehensive income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

 

(2)

 

 

 

 

 

(4)

 

 

 

 

 

51

 

 

Net revaluation surplus before transfer to investment properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- intangible assets

 

 

-

 

 

 

 

 

93

 

 

 

 

 

105

 

 

- tangible assets

 

 

-

 

 

 

 

 

1

 

 

 

 

 

2

 

 

Tax on items that will not be reclassified

 

 

1

 

 

 

 

 

1

 

 

 

 

 

(12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

 

 

 

 

91

 

 

 

 

 

146

 

 

Share of other comprehensive income/

(expense) of Jardine Matheson

 

 

6

 

 

 

 

 

(18)

 

 

 

 

 

(28)

 

 

Share of other comprehensive expense

of associates and joint ventures

 

 

(1)

 

 

 

 

 

(3)

 

 

 

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

70

 

 

 

 

 

117

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period
 

 

 

131

 


 

 

 

 

 

380

 

 

 

 

 

 

 

(78)
 

 

 

 

 

Revaluation of other investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

96

 

 

 

 

 

(10)

 

 

 

 

 

111

 

 

- transfer to profit and loss

 

 

(5)

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

91

 

 

 

 

 

(10)

 

 

 

 

 

111

 

 

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net loss arising during the period

 

 

(55)

 

 

 

 

 

(22)

 

 

 

 

 

(173)

 

 

- transfer to profit and loss

 

 

7

 

 

 

 

 

17

 

 

 

 

 

186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48)

 

 

 

 

 

(5)

 

 

 

 

 

13

 

 

Tax relating to items that may be reclassified

 

 

9

 

 

 

 

 

4

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of other comprehensive income/ (expense) of Jardine Matheson

 

 

31

 

 

 

 

 

(31)

 

 

 

 

 

(71)

 

 

Share of other comprehensive income/

(expense) of associates and joint ventures

 

 

226

 

 

 

 

 

195

 

 

 

 

 

(149)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

440

 

 

 

 

 

533

 

 

 

 

 

(173)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

444

 

 

 

 

 

603

 

 

 

 

 

(56)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

4,882

 

 

 

 

 

2,797

 

 

 

 

 

5,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

2,520

 

 

 

 

 

1,282

 

 

 

 

 

2,623

 

 

Non-controlling interests

 

 

2,362

 

 

 

 

 

1,515

 

 

 

 

 

2,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,882

 

 

 

 

 

2,797

 

 

 

 

 

5,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

3,070

 

 

 

2,608

 

 

 

2,661

 

Tangible assets

 

5,977

 

 

 

5,660

 

 

 

5,612

 

Investment properties

 

30,889

 

 

 

26,510

 

 

 

28,173

 

Bearer plants

 

512

 

 

 

528

 

 

 

497

 

Investment in Jardine Matheson

 

2,831

 

 

 

2,371

 

 

 

2,480

 

Associates and joint ventures

 

11,155

 

 

 

9,632

 

 

 

9,785

 

Other investments

 

1,243

 

 

 

1,099

 

 

 

1,328

 

Non-current debtors

 

3,210

 

 

 

2,905

 

 

 

2,916

 

Deferred tax assets

 

366

 

 

 

291

 

 

 

332

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

59,253

 

 

 

51,604

 

 

 

53,784

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

 

2,103

 

 

 

2,811

 

 

 

2,315

 

Stocks and work in progress

 

2,609

 

 

 

2,369

 

 

 

2,538

 

Current debtors

 

5,925

 

 

 

5,751

 

 

 

5,932

 

Current investments

 

50

 

 

 

47

 

 

 

65

 

Current tax assets

 

163

 

 

 

209

 

 

 

168

 

Bank balances and other liquid funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

5,064

 

 

 

4,412

 

 

 

4,874

 

- financial services companies

 

234

 

 

 

352

 

 

 

229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,298

 

 

 

4,764

 

 

 

5,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,148

 

 

 

15,951

 

 

 

16,121

 

Non-current assets classified as held for sale

 

3

 

 

 

-

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

16,151

 

 

 

15,951

 

 

 

16,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

75,404

 

 

 

67,555

 

 

 

69,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

56

 

 

 

56

 

 

 

56

 

Share premium and capital reserves

 

1,009

 

 

 

1,064

 

 

 

1,020

 

Revenue and other reserves

 

29,378

 

 

 

25,687

 

 

 

26,984

 

Own shares held

 

(1,928)

 

 

 

(1,877)

 

 

 

(1,918)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' funds

 

28,515

 

 

 

24,930

 

 

 

26,142

 

Non-controlling interests

 

25,918

 

 

 

22,982

 

 

 

24,064

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

54,433

 

 

 

47,912

 

 

 

50,206

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

4,962

 

 

 

5,516

 

 

 

5,118

 

- financial services companies

 

1,510

 

 

 

1,765

 

 

 

1,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,472

 

 

 

7,281

 

 

 

6,636

 

Deferred tax liabilities

 

546

 

 

 

449

 

 

 

470

 

Pension liabilities

 

293

 

 

 

320

 

 

 

273

 

Non-current creditors

 

501

 

 

 

432

 

 

 

436

 

Non-current provisions

 

139

 

 

 

138

 

 

 

129

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

7,951

 

 

 

8,620

 

 

 

7,944

 

 

 

 

 

 

 

 

 

 

 

 

 

Current creditors

 

7,926

 

 

 

7,244

 

 

 

7,378

 

Current borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

2,274

 

 

 

1,492

 

 

 

1,771

 

- financial services companies

 

2,410

 

 

 

1,937

 

 

 

2,265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,684

 

 

 

3,429

 

 

 

4,036

 

Current tax liabilities

 

316

 

 

 

266

 

 

 

243

 

Current provisions

 

94

 

 

 

84

 

 

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

13,020

 

 

 

11,023

 

 

 

11,758

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

20,971

 

 

 

19,643

 

 

 

19,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

75,404

 

 

 

67,555

 

 

 

69,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Statement of Changes in Equity

 

 

 

Share

capital

US$m

 

Share

premium

US$m

 

Capital

reserves

US$m

 

 

 

Revenue

reserves

US$m

 

 

Contributed

surplus

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 2017 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2017

56

 

816

 

204

 

28,498

 

304

 

262

 

(16)

 

(2,064)

 

(1,918)

 

26,142

 

24,064

 

50,206

Total comprehensive income

-

 

-

 

-

 

2,308

 

-

 

-

 

(9)

 

221

 

-

 

2,520

 

2,362

 

4,882

Dividends paid by the Company (note 10)

-

 

-

 

-

 

(122)

 

-

 

-

 

-

 

-

 

-

 

(122)

 

-

 

(122)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(515)

 

(515)

Employee share option schemes

-

 

-

 

7

 

-

 

-

 

-

 

-

 

-

 

-

 

7

 

-

 

7

Scrip issued in lieu of dividends

-

 

-

 

-

 

5

 

-

 

-

 

-

 

-

 

-

 

5

 

-

 

5

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(10)

 

(10)

 

-

 

(10)

Subsidiaries acquired

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

7

 

7

Change in interests in associates and joint ventures

-

 

-

 

-

 

(27)

 

-

 

-

 

-

 

-

 

-

 

(27)

 

-

 

(27)

Transfer

-

 

-

 

(18)

 

18

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2017

56

 

816

 

193

 

30,680

 

304

 

262

 

(25)

 

(1,843)

 

(1,928)

 

28,515

 

25,918

 

54,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2016 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2016

56

 

984

 

194

 

25,850

 

304

 

222

 

(10)

 

(1,814)

 

(1,867)

 

23,919

 

21,943

 

45,862

Total comprehensive income

-

 

-

 

-

 

1,051

 

-

 

35

 

(10)

 

206

 

-

 

1,282

 

1,515

 

2,797

Dividends paid by the Company (note 10)

-

 

-

 

-

 

(118)

 

-

 

-

 

-

 

-

 

-

 

(118)

 

-

 

(118)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(495)

 

(495)

Employee share option schemes

-

 

-

 

7

 

-

 

-

 

-

 

-

 

-

 

-

 

7

 

-

 

7

Scrip issued in lieu of dividends

-

 

-

 

-

 

4

 

-

 

-

 

-

 

-

 

-

 

4

 

-

 

4

Repurchase of shares

-

 

(120)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(120)

 

-

 

(120)

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(10)

 

(10)

 

-

 

(10)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

76

 

76

Change in interests in subsidiaries

-

 

-

 

-

 

(33)

 

-

 

-

 

-

 

-

 

-

 

(33)

 

(57)

 

(90)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(1)

 

-

 

-

 

-

 

-

 

-

 

(1)

 

-

 

(1)

Transfer

-

 

-

 

(1)

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2016

56

 

864

 

200

 

26,754

 

304

 

257

 

(20)

 

(1,608)

 

(1,877)

 

24,930

 

22,982

 

47,912

 

 

 

Year ended 31st December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2016

56

 

984

 

194

 

25,850

 

304

 

222

 

(10)

 

(1,814)

 

(1,867)

 

23,919

 

21,943

 

45,862

Total comprehensive income

-

 

-

 

-

 

2,840

 

-

 

40

 

(6)

 

(251)

 

-

 

2,623

 

2,824

 

5,447

Dividends paid by the Company

-

 

-

 

-

 

(171)

 

-

 

-

 

-

 

-

 

-

 

(171)

 

-

 

(171)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(726)

 

(726)

Unclaimed dividends forfeited

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Employee share option schemes

-

 

-

 

13

 

-

 

-

 

-

 

-

 

-

 

-

 

13

 

1

 

14

Scrip issued in lieu of dividends

-

 

-

 

-

 

6

 

-

 

-

 

-

 

-

 

-

 

6

 

-

 

6

Repurchase of shares

-

 

(168)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(168)

 

-

 

(168)

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(51)

 

(51)

 

-

 

(51)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

83

 

83

Change in interests in subsidiaries

-

 

-

 

-

 

(29)

 

-

 

-

 

-

 

1

 

-

 

(28)

 

(61)

 

(89)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(2)

 

-

 

-

 

-

 

-

 

-

 

(2)

 

-

 

(2)

Transfer

-

 

-

 

(3)

 

3

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2016

56

 

816

 

204

 

28,498

 

304

 

262

 

(16)

 

(2,064)

 

(1,918)

 

26,142

 

24,064

 

50,206

 

Total comprehensive income for the six months ended 30th June 2017 included in revenue reserves comprises profit attributable to shareholders of the Company of US$2,227 million  (2016: US$1,088 million) and net fair value gain on other investments of US$76 million (2016: net fair value loss of US$16 million).  Cumulative net fair value gain on other investments amounted to US$477 million.

 

Total comprehensive income for the year ended 31st December 2016 included in revenue reserves comprises profit attributable to shareholders of the Company of US$2,741 million and net fair value gain on other investments of US$111 million.  Cumulative net fair value gain on other investments amounted to US$401 million.

 

Contributed surplus represents the excess in value of shares acquired in consideration for the issue of the Company's shares, over the nominal value of those shares issued.  Under the Bye-Laws of the Company, the contributed surplus is distributable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

Year ended 31st December

 

 

 

2017

US$m

 

 

 

 

2016

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

4,170

 

 

 

2,259

 

 

 

5,447

 

Change in fair value of investment properties

 

(2,694)

 

 

 

(986)

 

 

 

(2,558)

 

Depreciation and amortization

 

445

 

 

 

436

 

 

 

884

 

Other non-cash items

 

124

 

 

 

117

 

 

 

185

 

Increase in working capital

 

(28)

 

 

 

(221)

 

 

 

(242)

 

Interest received

 

77

 

 

 

67

 

 

 

135

 

Interest and other financing charges paid

 

(165)

 

 

 

(132)

 

 

 

(272)

 

Tax paid

 

(291)

 

 

 

(318)

 

 

 

(660)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,638

 

 

 

1,222

 

 

 

2,919

 

Dividends from associates and joint ventures

 

458

 

 

 

287

 

 

 

496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

2,096

 

 

 

1,509

 

 

 

3,415

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of subsidiaries (note 12(a))

 

(10)

 

 

 

(1)

 

 

 

(14)

 

Purchase of associates and joint ventures (note 12(b))

 

(1,079)

 

 

 

(221)

 

 

 

(650)

 

Purchase of other investments (note 12(c))

 

(147)

 

 

 

(68)

 

 

 

(293)

 

Purchase of intangible assets

 

(94)

 

 

 

(64)

 

 

 

(140)

 

Purchase of tangible assets

 

(517)

 

 

 

(460)

 

 

 

(906)

 

Additions to investment properties

 

(216)

 

 

 

(135)

 

 

 

(312)

 

Additions to bearer plants

 

(19)

 

 

 

(28)

 

 

 

(56)

 

Advance to associates and joint ventures (note 12(d))

 

(304)

 

 

 

(3)

 

 

 

(81)

 

Advance and repayment from associates and joint ventures

(note12(e))

 

232

 

 

 

33

 

 

 

175

 

Sale of associates and joint ventures

 

13

 

 

 

-

 

 

 

3

 

Redemption of convertible bonds in Zhongsheng

 

398

 

 

 

-

 

 

 

-

 

Sale of other investments (note 12(f))

 

117

 

 

 

33

 

 

 

122

 

Sale of intangible assets

 

1

 

 

 

3

 

 

 

8

 

Sale of tangible assets

 

9

 

 

 

12

 

 

 

33

 

Sale of investment properties

 

42

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

(1,574)

 

 

 

(898)

 

 

 

(2,110)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of shares

 

  -

 

 

 

(120)

 

 

 

(168)

 

Capital contribution from non-controlling interests

 

-

 

 

 

76

 

 

 

77

 

Change in interests in subsidiaries (note 12(g))

 

15

 

 

 

(90)

 

 

 

(104)

 

Drawdown of borrowings

 

8,552

 

 

 

7,438

 

 

 

13,503

 

Repayment of borrowings

 

(8,252)

 

 

 

(7,107)

 

 

 

(12,967)

 

Dividends paid by the Company

 

(228)

 

 

 

(219)

 

 

 

(317)

 

Dividends paid to non-controlling interests

 

(520)

 

 

 

(497)

 

 

 

(731)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

(433)

 

 

 

(519)

 

 

 

(707)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

89

 

 

 

92

 

 

 

598

 

Cash and cash equivalents at beginning of period

 

5,091

 

 

 

4,568

 

 

 

4,568

 

Effect of exchange rate changes

 

64

 

 

 

48

 

 

 

(75)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

5,244

 

 

 

4,708

 

 

 

5,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic 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'.  The condensed financial statements have been prepared 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 new standards or amendments, which are effective in the current accounting period and relevant to the Group's operations, that have a significant effect on the Group's accounting policies.  There have been no changes to the accounting policies described in the 2016 annual financial statements.

 

 

 

2.    Revenue

 

 

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson

 

6,615

 

 

 

6,353

 

 

 

-

 

 

 

-

 

 

Hongkong Land

 

2,381

 

 

 

1,209

 

 

 

1,297

 

 

 

783

 

 

Dairy Farm

 

10,448

 

 

 

10,110

 

 

 

5,505

 

 

 

5,562

 

 

Mandarin Oriental

 

462

 

 

 

469

 

 

 

287

 

 

 

288

 

 

Jardine Cycle & Carriage

 

3,446

 

 

 

3,276

 

 

 

1,150

 

 

 

1,120

 

 

Astra

 

14,851

 

 

 

13,271

 

 

 

7,369

 

 

 

6,583

 

 

Intersegment transactions

 

(131)

 

 

 

(119)

 

 

 

(2)

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,072

 

 

 

34,569

 

 

 

15,606

 

 

 

14,334

 

 

Gross revenue comprises revenue together with 100% of revenue from Jardine Matheson, associates and joint ventures. 

 

3.    Net Operating Costs

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(11,686)

 

 

 

(10,709)

 

 

Other operating income

 

264

 

 

 

214

 

 

Selling and distribution costs

 

(1,758)

 

 

 

(1,704)

 

 

Administration expenses

 

(889)

 

 

 

(820)

 

 

Other operating expenses

 

(61)

 

 

 

(42)

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,130)

 

 

 

(13,061)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in interests in associates and joint ventures

 

13

 

 

 

(4)

 

 

Acquisition-related costs

 

-

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

(6) 

 

 

 

4.    Share of Results of Jardine Matheson

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

41

 

 

 

30

 

 

Jardine Motors

 

154

 

 

 

28

 

 

Jardine Lloyd Thompson

 

21

 

 

 

11

 

 

Corporate and other interests

 

19

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

235

 

 

 

84

 

 

 

 

 

 

 

 

 

 

 

Share of results of Jardine Matheson included the

following gains/(losses) from non-trading items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of property interests

 

111

 

 

 

-

 

 

Sale of businesses

 

2

 

 

 

(1)

 

 

Value added tax recovery in Jardine Motors

 

5

 

 

 

-

 

 

Litigation costs

 

-

 

 

 

(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

118

 

 

 

(7)

 

 

Results are shown after tax and non-controlling interests in Jardine Matheson.

 

5.    Share of Results of Associates and Joint Ventures

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Hongkong Land

 

58

 

 

 

(61)

 

 

Dairy Farm

 

62

 

 

 

46

 

 

Mandarin Oriental

 

3

 

 

 

5

 

 

Jardine Cycle & Carriage

 

57

 

 

 

69

 

 

Astra

 

271

 

 

 

148

 

 

Corporate and other interests

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

452

 

 

 

208

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

(56)

 

 

 

(121)

 

 

Change in interest in an associate

 

8

 

 

 

-

 

 

Sale of business

 

1

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

(47)

 

 

 

(121)

 

 

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

 

6.    Tax

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax charged to profit and loss is analyzed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current tax

 

(369)

 

 

 

(316)

 

 

Deferred tax

 

23

 

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

 

(346)

 

 

 

(290)

 

 

 

 

 

 

 

 

 

 

 

Greater China

 

(113)

 

 

 

(117)

 

 

Southeast Asia

 

(231)

 

 

 

(171)

 

 

Rest of the world

 

(2)

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(346)

 

 

 

(290)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

1

 

 

 

1

 

 

Cash flow hedges

 

9

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

5

 

 

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

 

Share of tax charge of Jardine Matheson of US$21 million and US$4 million (2016: charge of US$13 million and credit of US$7 million) are included in share of results of Jardine Matheson and share of other comprehensive income of Jardine Matheson, respectively.

 

Share of tax charge of associates and joint ventures of US$202 million and credit of US$1 million (2016: charge of US$87 million and credit of US$2 million) are included in share of results of associates and joint ventures and share of other comprehensive income of associates and joint ventures, respectively.

 

7.    Profit Attributable to Shareholders

 

 

Six months ended 30th June

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating segments:

 

 

 

 

 

 

 

 

Jardine Matheson

 

135

 

 

 

101

 

 

Hongkong Land

 

259

 

 

 

196

 

 

Dairy Farm

 

164

 

 

 

155

 

 

Mandarin Oriental

 

12

 

 

 

18

 

 

Jardine Cycle & Carriage

 

54

 

 

 

70

 

 

Astra

 

236

 

 

 

187

 

 

 

 

 

 

 

 

 

 

 

 

 

860

 

 

 

727

 

 

Corporate and other interests

 

(73)

 

 

 

(63)

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders*

 

787

 

 

 

664

 

 

Increase in fair value of investment properties

 

1,311

 

 

 

435

 

 

Other non-trading items

 

129

 

 

 

(11)

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

2,227

 

 

 

1,088

 

 

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

 

8.    Earnings per Share

 

Basic earnings per share are calculated on profit attributable to shareholders of US$2,227 million (2016: US$1,088 million) and on the weighted average number of   581 million (2016: 591 million) shares in issue during the period.

 

Diluted earnings per share are calculated on profit attributable to shareholders of US$2,226 million (2016: US$1,088 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of Jardine Matheson, subsidiaries, associates or joint ventures, and on the weighted average number of 581 million (2016: 591 million) shares in issue during the period.

 

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

 

 

 

 

Ordinary shares

in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares in issue

 

1,108

 

 

 

1,113

 

 

Company's share of shares held by Jardine Matheson

 

(527)

 

 

 

(522)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for earnings per

share calculation

 

581

 

 

 

591

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

US$m

 

 

Basic earnings per share

US$

 

 

Diluted earnings per share

US$

 

 

US$m

 

 

Basic earnings per share

US$

 

 

Diluted earnings per share

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

2,227

 

 

3.83

 

 

3.83

 

 

1,088

 

 

1.84

 

 

1.84

 

 

Non-trading items (note 9)

 

(1,440)

 

 

 

 

 

 

 

 

(424)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders

 

787

 

 

1.35

 

 

1.35

 

 

664

 

 

1.12

 

 

1.12

 

 

9.    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; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets 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

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Matheson

 

118

 

 

 

(7)

 

 

Hongkong Land

 

1,304

 

 

 

435

 

 

Dairy Farm

 

1

 

 

 

-

 

 

Mandarin Oriental

 

-

 

 

 

(1)

 

 

Jardine Cycle & Carriage

 

6

 

 

 

(3)

 

 

Astra

 

11

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

1,440

 

 

 

424

 

 

 

 

 

 

 

 

 

 

 

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

 

1,304

 

 

 

435

 

 

- other

 

7

 

 

 

-

 

 

Sale of property interests

 

111

 

 

 

-

 

 

Sale of businesses

 

3

 

 

 

(1)

 

 

Change in interests in associates and joint ventures

 

10

 

 

 

 (3)

 

 

Value added tax recovery in Jardine Motors

 

5

 

 

 

-

 

 

Litigation costs

 

-

 

 

 

(6)

 

 

Acquisition-related costs

 

-

 

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,440

 

 

 

424

 

 

 

 

 

 

 

 

 

 

 

10.  Dividends

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final dividend in respect of 2016 of US¢21.00

 

 

 

 

 

 

 

 

 (2015: US¢20.00) per share

 

233

 

 

 

223

 

 

Company's share of dividends paid on the shares

 

 

 

 

 

 

 

 

held by Jardine Matheson

 

(111)

 

 

 

(105)

 

 

 

 

 

 

 

 

 

 

 

 

 

122

 

 

 

118

 

 

An interim dividend in respect of 2017 of US¢9.50 (2016: US¢9.00) per share amounting to a total of US$105 million (2016: US$100 million) is declared by the Board.  The net amount after deducting the Company's share of the dividends payable on the shares held by Jardine Matheson of US$50 million (2016: US$47 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2017.

 

11.  Financial Instruments

 

Financial instruments by category

 

The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2017 and 31st December 2016 are as follows:

 

 

 

 

Loans and

receivables

US$m

 

Derivatives used for hedging

US$m

 

 

Available-

for-sale

US$m

 

Other financial instruments at amortized cost

US$m

 

 

Other financial instruments fair value through profit and loss

US$m

 

 

Total

carrying

amount

US$m

 

 

Fair

value

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30th June 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

-

 

 

-

 

 

1,289

 

 

-

 

 

-

 

 

1,289

 

 

1,289

 

 

Debtors

 

7,795

 

 

59

 

 

-

 

 

-

 

 

12

 

 

7,866

 

 

7,871

 

 

Bank balances and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other liquid funds

 

5,298

 

 

-

 

 

-

 

 

-

 

 

-

 

 

5,298

 

 

5,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,093

 

 

59

 

 

1,289

 

 

-

 

 

12

 

 

14,453

 

 

14,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(excluding finance lease liabilities)

 

-

 

 

-

 

 

-

 

 

(11,106)

 

 

-

 

 

(11,106)

 

 

(11,244)

 

 

Finance lease

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

-

 

 

-

 

 

-

 

 

(50)

 

 

-

 

 

(50)

 

 

(50)

 

 

Trade and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

payables excluding non-financial liabilities

 

-

 

 

(58)

 

 

-

 

 

(6,551)

 

 

(9)

 

 

(6,618)

 

 

(6,618)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

(58)

 

 

-

 

 

(17,707)

 

 

(9)

 

 

(17,774)

 

 

(17,912)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31st December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

-

 

 

-

 

 

1,386

 

 

-

 

 

-

 

 

1,386

 

 

1,386

 

 

Debtors

 

7,592

 

 

119

 

 

-

 

 

-

 

 

12

 

 

7,723

 

 

7,644

 

 

Bank balances and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other liquid funds

 

5,103

 

 

-

 

 

-

 

 

-

 

 

-

 

 

5,103

 

 

5,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,695

 

 

119

 

 

1,386

 

 

-

 

 

12

 

 

14,212

 

 

14,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(excluding

finance lease

liabilities)

 

-

 

 

-

 

 

-

 

 

(10,617)

 

 

-

 

 

(10,617)

 

 

(10,702)

 

 

Finance lease

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

liabilities

 

-

 

 

-

 

 

-

 

 

(55)

 

 

-

 

 

(55)

 

 

(55)

 

 

Trade and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

payables

excluding

non-financial

liabilities

 

-

 

 

(28)

 

 

-

 

 

(5,868)

 

 

(9)

 

 

(5,905)

 

 

(5,905)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

(28)

 

 

-

 

 

(16,540)

 

 

(9)

 

 

(16,577)

 

 

(16,662)

 

 

Fair value estimation

(i)  Financial instruments that are measured at fair value

For financial instruments that are measured at fair value in the balance sheet, the corresponding fair value measurements are disclosed by level of the following fair value measurement hierarchy:

 

(a)  Quoted prices (unadjusted) in active markets for identical assets or liabilities ('quoted prices in active markets')

The fair values of listed securities, which are classified as available-for-sale, are based on quoted prices in active markets at the balance sheet date.  The quoted market price used for listed investments held by the Group is the current bid price.

 

(b)  Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly ('observable current market transactions')

The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at the balance sheet date.  The rates for interest rate swaps and caps, cross-currency swaps, forward foreign exchange contracts and credit default swaps are calculated by reference to market interest rates and foreign exchange rates.

 

The fair values of unlisted investments, which are classified as available-for-sale and mainly include club and school debentures, are determined using prices quoted by brokers at the balance sheet date.

 

(c)  Inputs for assets or liabilities that are not based on observable market data ('unobservable inputs')

The fair values of other unlisted securities, which are classified as available-for-sale, are determined using valuation techniques by reference to observable current market transactions (including price-to earnings and price-to book ratios of listed securities of entities engaged in similar industries) or the market prices of the underlying investments with certain degree of entity specific estimates.  The fair value of convertible component of convertible bonds held is made reference to the quoted price of the underlying shares and estimation on volatility.

 

There were no changes in valuation techniques during the six months ended 30th June 2017 and the year ended 31st December 2016.

 

The table below analyzes financial instruments carried at fair value at 30th June 2017 and 31st December 2016, by the levels in the fair value measurement hierarchy:

 

 

 

 

Quoted

prices in active markets

US$m

 

 

Observable current market transactions

US$m

 

Unobservable inputs

US$m

 

 

 

Total

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30th June 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- listed securities

 

1,229

 

 

 

-

 

 

 

-

 

 

 

1,229

 

 

 

- unlisted investments

 

-

 

 

 

8

 

 

 

52

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,229

 

 

 

8

 

 

 

52

 

 

 

1,289

 

 

 

Derivative designated at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- through other comprehensive income

 

-

 

 

 

42

 

 

 

-

 

 

 

42

 

 

 

- through profit and loss

 

-

 

 

 

17

 

 

 

-

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,229

 

 

 

67

 

 

 

52

 

 

 

1,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration payable

 

-

 

 

 

-

 

 

 

(9)

 

 

 

(9)

 

 

 

Derivative designated at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-  through other comprehensive income

 

-

 

 

 

(54)

 

 

 

-

 

 

 

(54)

 

 

 

- through profit and loss

 

-

 

 

 

(4)

 

 

 

-

 

 

 

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

(58)

 

 

 

(9)

 

 

 

(67)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31st December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- listed securities

 

1,327

 

 

 

-

 

 

 

-

 

 

 

1,327

 

 

 

- unlisted investments

 

-

 

 

 

8

 

 

 

51

 

 

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,327

 

 

 

8

 

 

 

51

 

 

 

1,386

 

 

 

Derivative designated at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- through other comprehensive income

 

-

 

 

 

102

 

 

 

-

 

 

 

102

 

 

 

- through profit and loss

 

-

 

 

 

17

 

 

 

-

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,327

 

 

 

127

 

 

 

51

 

 

 

1,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities