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Jardine Strategic Hldgs Ltd  -  JDS   

Half-year Report

Released 10:47 27-Jul-2018

RNS Number : 9832V
Jardine Strategic Hldgs Ltd
27 July 2018
 

To:   Business Editor                                                   27th July 2018

                                                        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 2018

 

Highlights

·     Underlying profit up 9%

·     Good performances from Astra and Jardine Cycle & Carriage

·     Strong financial position maintained

 

"After a good performance in the first half of 2018 driven primarily by Astra and Jardine Cycle & Carriage, we are optimistic for a stronger second half of the year, with these companies continuing to perform well and the contributions of other businesses expected to improve."

 

Sir Henry Keswick, Chairman

 

Results

(unaudited)

Six months ended 30th June

 

 

 

 

2018
US$m

2017

US$m

 

 

Change

%

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

44,348

37,417 

 

+19

Revenue

16,939

14,959

 

+13 

Underlying profit* attributable to shareholders

828

762 

 

+9

Profit attributable to shareholders

  984

2,342

 

58

 

US$

US$

 

%

Underlying earnings per share*

1.45

1.31

 

+11

Earnings per share

1.72

4.03

 

57

Net asset value per share#

64.62

59.08

 

+9

 

US¢

US¢

 

%

Interim dividend per share

10.00

  9.50

    

5

* 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 2018 and 31st December 2017, 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 accounts have been restated due to changes in accounting policies upon adoption of IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers', as set out in note 1 to the condensed financial statements.

 

The interim dividend of US¢10.00 per share will be payable on 10th October 2018 to shareholders on the register of members at the close of business on 17th August 2018 and will be available in cash with a scrip alternative.

 

 

Jardine Strategic Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2018

 

Overview

Jardine Strategic benefited from strong performances in the first half of 2018 from Astra and Jardine Cycle & Carriage in particular, although these were partially offset by Jardine Pacific.  Dairy Farm saw a slight increase in profit, while Hongkong Land was slightly down against the prior year.

 

Results

Underlying profit for the period rose 9% to US$828 million, and underlying earnings per share were up 11% at US$1.45.  The revenue of the Group for the period was 13% higher at US$16,939 billion, while revenue, including 100% of Jardine Matheson, associates and joint ventures, was up 19% at US$44,348 billion.

 

Within the Group's businesses, Jardine Pacific saw lower results from Restaurants and Transport Services and steady performances by Gammon, Jardine Schindler and JECJardine Motors made a good start to the year in Hong Kong, but its margins in mainland China and the United Kingdom came under pressure.  Its increased underlying profit included a contribution from Zhongsheng, which became an associate in the second half of 2017.  Jardine Lloyd Thompson delivered a solid performance in the context of continuing inconsistency in global insurance markets.

 

Results from Hongkong Land were slightly down.  While the contribution from its investment properties was higher, due to positive rental reversions in Hong Kong, profits from its development properties were lower due to the timing of sales completions in mainland China, partially offset by a higher contribution from Singapore.

 

Dairy Farm saw an increase in sales with profit slightly higher than the prior year.  There were strong results from North Asia, driven by the Health and Beauty business in Hong Kong and Macau, but the Southeast Asian Food businesses continued to face significant challenges.

 

At Mandarin Oriental, underlying profits were higher due to generally improved performances across the Group's portfolio, notably in Hong Kong, Singapore, Bangkok and Tokyo.  The impact of the fire at its London hotel is being assessed by insurers with the estimate of a write-off of tangible assets offset by insurance claims recoverable.  Given the coverage under the group's insurance arrangements, the impact on profitability is expected to be modest.

 

In Southeast Asia, Jardine Cycle & Carriage saw stronger performances by its Direct Motor Interests and Other Strategic Interests.  Astra also performed well, with strong performances from its heavy equipment and mining businesses and an improved contribution from its financial services division, which more than offset lower contributions from its agribusiness and infrastructure operations.  Net income from the automotive business was flat.   

 

Non-trading gains in the first half totalled US$156 million, primarily consisting of a net gain of US$337 million from revaluations of investment properties and a net loss of US$187 million due to unrealised fair value losses related to non-current investments.  This compares with a net non-trading gain of US$1,580 million in the first half of 2017.  Accordingly, the Group's profit attributable to shareholders for the period was US$984 million compared with US$2,342 million in 2017.

 

The Board has declared an increased interim dividend of US¢10.00 per share.

 

Business Developments

Hongkong Land has continued to benefit from tight supply in the Hong Kong office leasing market and vacancy in the Singapore office portfolio also remains low.  WF CENTRAL in Beijing is performing in line with expectations and its hotel, Mandarin Oriental Wangfujing, is expected to open towards the end of the year.  Planning of the prime commercial joint venture project in the central business district of Bangkok, which was secured in late 2017, continues in line with schedule.  Good progress was made in the period in securing new sites for development, including a prime commercial site in Nanjing's central business district and a residential site in Singapore, as well as projects in Bangkok, Jakarta and Manila.  Hongkong Land's joint venture projects in the rest of Southeast Asia are progressing on schedule.

 

Dairy Farm continues to face challenges on several fronts, including increasing competitive pressures and a number of underperforming businesses within its portfolio.  In order to address these, it has consolidated its trading operations into a more centralised structure with two main trading divisions, North Asia and Southeast Asia, in addition to Home Furnishings and Maxim's, which remain as standalone divisions.  Newly constituted shared functions will provide specialist support to all divisions and a strengthened and broadened leadership team has been created to meet the requirements of the business.   These structural and management changes will enable the group to address the issues it faces, but time will be needed to deliver sustainable improvement.  A series of programmes is underway to address its strategic priorities of building capability, protecting the Hong Kong business, revitalising the Southeast Asia operations, growing presence in China, and driving digital innovation.  A partnership has been announced with Robinsons Retail Holdings Inc. to build a leading food retail business in the Philippines.

 

Five new management contracts were signed by Mandarin Oriental in the first half of the year, while new hotels in Beijing, Doha and Dubai, as well as The Residences at Mandarin Oriental in Bangkok, are expected to open over the next 12 months.  Management of the Las Vegas hotel will cease at the end of August 2018 following a change of ownership.  Strategic options for The Excelsior, Hong Kong, including the possible redevelopment of the site into a commercial building, remain under consideration. 

 

People

Julian Hui and Dr George Koo stepped down as Directors on 10th May 2018.  We would like to thank them for their significant contribution to the Company over many years.  We are pleased to welcome Lord Powell of Bayswater to the Board.

 

Outlook

After a good performance in the first half of 2018 driven primarily by Astra and Jardine Cycle & Carriage, we are optimistic for a stronger second half of the year, with these companies continuing to perform well and the contributions of other businesses expected to improve.

 

Sir Henry Keswick

Chairman

 

 

Operating Review

 

Jardine Matheson

Jardine Matheson produced an underlying profit for the first six months of 2018 of US$792 million, an increase of 6% over the same period in 2017.  Non-trading items in the first half represented a net gain of US$136 million, giving a profit attributable to shareholders of US$928 million for the six months under review, compared with US$2,174 million in 2017.  Shareholders' funds rose to US$25.8 billion during the first six months of the year.

 

·   Jardine Pacific

Jardine Pacific's underlying profit for the first half was down 6% at US$63 million, as lower results from Restaurants and Transport Services, and steady performances by Gammon, Jardine Schindler and JEC, were mitigated by the contribution from the interest in Greatview, acquired in June 2017.  Jardine Restaurants reported a lower result due to difficult trading conditions in Taiwan and Vietnam.  The results of the Transport Services business were impacted by the loss of a significant customer at Hactl but, generally, cargo throughput was in line with the market.  Jardine Schindler saw flat profits, but further growth in its maintenance portfolio, while Gammon's profits were broadly in line with last year due to project timing, but its order book remains strong.  JEC produced a stable contribution, with its Hong Kong operations performing well.  Greatview's business saw revenue growth, with good performances in both China and international business.

 

·   Jardine Motors

Jardine Motors saw its underlying net profit for the first half increase by 6% to US$87 million, including the contribution from Zhongsheng.  Hong Kong reported steady profit growth and there were increased sales of new cars.  In mainland China, however, profits were lower as a result of reduced margins on new car sales.  UK vehicle sales were higher but margins were compressed resulting in a lower profit.

 

·   Jardine Lloyd Thompson

JLT delivered a solid performance against a backdrop of continuing inconsistency and unpredictability in global economic and insurance market environments.  In April, the group restructured into three global business segments: Specialty, Reinsurance and Employee Benefits.  Total revenue was US$978 million, an increase of 3% in its reporting currency, representing 4% organic revenue growth.  Underlying profit before tax increased by 10%, compared to the first half of 2017. In the period, the group incurred costs relating to its global transformation programme, which is already beginning to contribute to an improvement in operating performance.  After adjusting for the costs of the programme and on conversion into US dollars, JLT's contribution to the Group's underlying profit was 2% lower than in the prior year.

 

Hongkong Land

Hongkong Land's underlying profit attributable to shareholders for the first six months was US$455 million, down 3%, largely due to the timing of sales completions of development properties in mainland China.  There was a strong performance from investment properties due to positive rental reversions in Hong Kong, in both the office and retail portfolios.  Profit attributable to shareholders was US$1,124 million after accounting for a net gain of US$661 million arising on the revaluation of investment properties.  This compares with a profit of US$3,114 million in the first half of 2017, including a net revaluation gain of US$2,608 million.

 

Hongkong Land's investment properties benefited from the tight supply in the Hong Kong Central office leasing market.  Vacancy in the group's Central office portfolio at 30th June 2018 was 1.9%, compared with 1.4% at the end of 2017.  The retail portfolio remained effectively fully occupied.  In Singapore, mildly negative rental reversions continued, although there are signs of a market recovery with reversions expected to become positive later in the year.  Vacancy in the group's office portfolio was 0.1% at the end of June 2018, compared with 0.3% at the end of 2017.

 

The profit contribution from development properties was lower as a result of fewer sales completions in mainland China than in the first half of 2017, due to phasing.  The number of sales completions will increase in the second half, particularly in relation to projects in Chongqing.  At 30th June, the group had US$1,507 million in sold but unrecognised contracted sales, compared with US$1,032 million at the end of 2017.  Results from Singapore were driven by the completion of the Sol Acres executive condominium project and the percentage of completion of sold units at the Lake Grande project, which is on schedule for completion in 2019.  The group's joint venture projects in the rest of Southeast Asia are progressing on schedule.

 

Dairy Farm

Dairy Farm saw sales of US$5.9 billion for the period by the group's subsidiaries, 8% ahead of the prior year or 6% higher at constant rates of exchange.  Total sales, including 100% of associates and joint ventures, increased by 17% to US$12.2 billion.  Underlying profit of US$215 million was 2% higher than the same period last year, as strong results from North Asia and Maxim's were offset by lower profits in Southeast Asia and Yonghui.  Home Furnishings was broadly in line with the same period last year. 

 

In North Asia, overall sales within the Food businesses were ahead of prior year, but profits declined, mainly due to higher rental and labour costs in Hong Kong.  The Health and Beauty business in Hong Kong and Macau delivered very strong sales and profits growth, driven by a significant increase in business from higher numbers of mainland Chinese tourists.  Yonghui reported strong sales growth and underlying profits from the core food business remained strong, but total profits were behind the prior year due to the investment in new technology formats and the introduction of a new employee incentive scheme.

 

In Southeast Asia, challenging trading conditions continued for the Food businesses, with lower sales and profits in Singapore, Malaysia and Indonesia.  In the Philippines, sales were higher but profits lower.  The improving performance of the majority of the group's Health and Beauty businesses in Southeast Asia was encouraging, with Malaysia, Indonesia and Vietnam reporting better underlying results

 

The group's convenience store operations performed well, with Hong Kong and Macau trading in line with last year, lower sales but higher profits in Singapore and continued growth in mainland China.

 

In Home Furnishings, IKEA delivered sales and profits growth in Taiwan and Indonesia, while Hong Kong reported higher sales but lower profits due to increased operating costs.  Maxim's delivered another good performance and is continuing to expand its presence across mainland China and Southeast Asia.

 

Mandarin Oriental

Mandarin Oriental delivered a good result for the period due to generally improved performances across most of the portfolio, notably in Hong Kong, Singapore, Bangkok and Tokyo.  There were also signs of recovery in Paris after several years of weak demand.  In The Americas, results from Washington D.C. and Boston were lower.  The group's underlying profit for the first half was US$22 million, compared with US$15 million in the same period of 2017.  

 

Following the fire at the London hotel, the process of repairs is underway and it is anticipated that the hotel will be able partially to reopen in the fourth quarter of this year.  The impact of the fire is being assessed by insurers with the estimate of a write off of tangible assets offset by insurance claims recoverable.  Given the coverage under the group's insurance arrangements, the impact on the Group's profitability is expected to be modest. 

 

An early termination fee was received in respect of the cessation of the management of the Las Vegas hotel from the end of August 2018 following a change in the hotel's ownership. 

 

Jardine Cycle & Carriage

Jardine Cycle & Carriage reported an underlying profit for the period of US$414 million, up 10%.  Profit attributable to shareholders was down 56% to US$174 million, after accounting for net non-trading losses of US$240 million, principally unrealised fair value losses related to non-current investments.  These result from the adoption of a new accounting standard that requires the unrealised gains or losses arising from the revaluation of equity investments at the end of each financial period to be included in the profit and loss account. 

 

Astra's contribution to underlying profit rose 12% to US$354 million.  Jardine Cycle & Carriage's Direct Motor Interests contributed an underlying profit of US$74 million, 18% above the previous year.  There were improved margins on passenger cars and increased contributions from used cars in Singapore, as well as higher contributions from Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam.  Other Strategic Interests also made a stronger contribution of US$41 million, up from US$8 million in the first half of 2017, benefiting in particular from Vinamilk dividends received in the period.  In addition, there was profit growth at Siam City Cement in Thailand and at Refrigeration Electrical Engineering Corporation in Vietnam. 

 

Astra

Astra reported net profit equivalent to US$750 million, under Indonesian accounting standards, up 11% in its reporting currency.  There were higher profits from the group's heavy equipment and mining businesses and an improved contribution from its financial services division, which more than offset lower contributions from its agribusiness and infrastructure operations. 

 

Net income from Astra's automotive business was flat at US$304 million, with increased earnings in the motorcycle operations and automotive components business offset by lower results in the car operations.  The wholesale market for cars in Indonesia was 4% higher in the period but the group's car sales fell by 10% as a result of increased competition, resulting in its market share falling from 56% to 48%.  The wholesale market for motorcycles increased by 11%, while Astra Honda Motor's domestic sales also rose by 11%, with its market share maintained at 74%. 

 

Net income from Astra's financial services division increased to US$155 million with an improved contribution from the group's consumer finance businesses.  Permata Bank reported a net income of US$20 million for the period, compared to US$47 million in the first half of 2017.  Its results in the first half of 2017 benefited from a one-off gain on the sale of non-performing loans.  In May 2018, Permata Bank sold its 25% shareholding in Astra Sedaya Finance to Astra in order to strengthen the bank's capital position and maximise its capital allocation for lending.  Astra Sedaya Finance is now 100%-owned by the group.  Asuransi Astra Buana, the group's general insurance company, reported net income of US$36 million, 2% lower than 2017 due to a reduction in investment income, while Astra Aviva Life continued to grow its customer base.

 

Net income from the group's heavy equipment, mining, construction and energy businesses increased by 60% to US$237 million, mainly due to improved performances in its construction machinery and mining contracting operations as a result of increased coal prices.  Within United Tractors' construction machinery business, Komatsu heavy equipment sales were up 37% at 2,400 units, while parts and service revenues were also higher.  The mining contracting operations of wholly-owned Pamapersada Nusantara recorded an 8% higher coal production at 56 million tonnes and a 23% higher overburden removal volume at 445 million bank cubic metres.  United Tractors' mining subsidiaries reported 22% higher coal sales at 4.4 million tonnes.

 

Net income from the group's agribusiness division was US$45 million, a decrease of 23% from the prior year primarily due to a fall in crude palm oil prices, which were 8% lower compared to the first half of 2017. 

 

The group's infrastructure and logistics division reported a net income of US$0.3 million, compared with a net profit of US$8 million in the first half of 2017, as initial losses on two new toll roads outweighed improved earnings from more established assets.  The group continues to develop its portfolio of toll road interests, which now total 353km, of which 269km is operational.

 

Net income from Astra's information technology business was 24% higher at US$5 million, with improved revenue across document and information technology solutions and office services businesses. 

 

The group's property division reported a net profit of US$3 million in the first half of 2018, compared to US$5 million in the prior year, reflecting lower development earnings recognised from its Anandamaya Residences project.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Profit and Loss Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

Year ended 31st December

 

 

 

2018

 

 

 

2017

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying

business

performance

US$m

 

Non-trading

items

US$m

 

 

 

 

 

 

 

Total

US$m

 

 

Underlying

business

performance

US$m    

restated

 

 

 

Non-trading

items

US$m restated

 

 

 

 

 

Total

US$m restated

 

Underlying

business

performance

US$m

restated

 

 

 

Non-trading

items

US$m restated

 

 

 

 

 

Total

US$m restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (note 2)

 

16,939

 

 

 

-

 

 

 

16,939

 

 

 

14,959

 

 

 

-

 

 

 

14,959

 

 

 

30,848

 

 

 

-

 

 

 

30,848

 

Net operating costs (note 3)

 

(15,169)

 

 

 

(234)

 

 

 

(15,403)

 

 

 

(13,554)

 

 

 

163

 

 

 

(13,391)

 

 

 

(27,931)

 

 

 

340

 

 

 

(27,591)

 

Change in fair value of investment

properties

 

-

 

 

 

665

 

 

 

665

 

 

 

-

 

 

 

2,694

 

 

 

2,694

 

 

 

-

 

 

 

4,701

 

 

 

4,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,770

 

 

 

431

 

 

 

2,201

 

 

 

1,405

 

 

 

2,857

 

 

 

4,262

 

 

 

2,917

 

 

 

5,041

 

 

 

7,958

 

Net financing charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- financing charges

 

(209)

 

 

 

-

 

 

 

(209)

 

 

 

(156)

 

 

 

-

 

 

 

(156)

 

 

 

(321)

 

 

 

-

 

 

 

(321)

 

- financing income

 

79

 

 

 

-

 

 

 

79

 

 

 

83

 

 

 

-

 

 

 

83

 

 

 

168

 

 

 

-

 

 

 

168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(130)

 

 

 

-

 

 

 

(130)

 

 

 

(73)

 

 

 

-

 

 

 

(73)

 

 

 

(153)

 

 

 

-

 

 

 

(153)

 

Share of results of Jardine Matheson

(note 4)

 

109

 

 

 

4

 

 

 

113

 

 

 

116

 

 

 

119

 

 

 

235

 

 

 

251

 

 

 

120

 

 

 

371

 

Share of results of associates and joint

ventures (note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- before change in fair value of

investment properties

 

446

 

 

 

1

 

 

 

447

 

 

 

499

 

 

 

15

 

 

 

514

 

 

 

1,025

 

 

 

(4)

 

 

 

1,021

 

- change in fair value of investment

properties

 

-

 

 

 

(1)

 

 

 

(1)

 

 

 

-

 

 

 

(56)

 

 

 

(56)

 

 

 

-

 

 

 

(32)

 

 

 

(32)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

446

 

 

 

-

 

 

 

446

 

 

 

499

 

 

 

(41)

 

 

 

458

 

 

 

1,025

 

 

 

(36)

 

 

 

989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

2,195

 

 

 

435

 

 

 

2,630

 

 

 

1,947

 

 

 

2,935

 

 

 

4,882

 

 

 

4,040

 

 

 

5,125

 

 

 

9,165

 

Tax (note 6)

 

(414)

 

 

 

(2)

 

 

 

(416)

 

 

 

(333)

 

 

 

(3)

 

 

 

(336)

 

 

 

(748)

 

 

 

(1)

 

 

 

(749)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

1,781

 

 

 

433

 

 

 

2,214

 

 

 

1,614

 

 

 

2,932

 

 

 

4,546

 

 

 

3,292

 

 

 

5,124

 

 

 

8,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

(notes 7 & 9)

 

828

 

 

 

156

 

 

 

984

 

 

 

762

 

 

 

1,580

 

 

 

2,342

 

 

 

1,570

 

 

 

2,735

 

 

 

4,305

 

Non-controlling interests

 

953

 

 

 

277

 

 

 

1,230

 

 

 

852

 

 

 

1,352

 

 

 

2,204

 

 

 

1,722

 

 

 

2,389

 

 

 

4,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,781

 

 

 

433

 

 

 

2,214

 

 

 

1,614

 

 

 

2,932

 

 

 

4,546

 

 

 

3,292

 

 

 

5,124

 

 

 

8,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic

 

1.45

 

 

 

 

 

 

 

1.72

 

 

 

1.31

 

 

 

 

 

 

 

4.03

 

 

 

2.71

 

 

 

 

 

 

 

7.44

 

- diluted

 

1.45

 

 

 

 

 

 

 

1.72

 

 

 

1.31

 

 

 

 

 

 

 

4.03

 

 

 

2.71

 

 

 

 

 

 

 

7.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

Year ended

31st

December

 

 

 

 

 

2018

US$m

 

 

 

 

 

2017

US$m restated

 

 

 

 

2017

US$m restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

2,214

 

 

 

 

 

4,546

 

 

 

 

 

8,416

 

 

Other comprehensive income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

 

(1)

 

 

 

 

 

(2)

 

 

 

 

 

8

 

 

Net revaluation surplus before transfer to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  investment properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- intangible assets

 

 

2

 

 

 

 

 

-

 

 

 

 

 

6

 

 

- tangible assets

 

 

1

 

 

 

 

 

-

 

 

 

 

 

-

 

 

Reversal of fair value gain upon reclassification

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   of equity investments to associates

 

 

-

 

 

 

 

 

(67)

 

 

 

 

 

(67)

 

 

Tax on items that will not be reclassified

 

 

-

 

 

 

 

 

1

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

(68)

 

 

 

 

 

(52)

 

 

Share of other comprehensive (expense) /income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   of Jardine Matheson

 

 

(2)

 

 

 

 

 

6

 

 

 

 

 

49

 

 

Share of other comprehensive income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   of associates and joint ventures

 

 

1

 

 

 

 

 

(1)

 

 

 

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

(63)

 

 

 

 

 

(12)

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/gain arising during the period

 

 

(720)

 

 

 

 

 

133

 

 

 

 

 

129

 

 

- transfer to profit and loss

 

 

1

 

 

 

 

 

-

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(719)

 

 

 

 

 

133

 

 

 

 

 

138

 

 

Revaluation of other investments at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   through other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/gain arising during the period

 

 

(20)

 

 

 

 

 

13

 

 

 

 

 

22

 

 

- transfer to profit and loss

 

 

(4)

 

 

 

 

 

(5)

 

 

 

 

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24)

 

 

 

 

 

8

 

 

 

 

 

19

 

 

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

38

 

 

 

 

 

(55)

 

 

 

 

 

(39)

 

 

- transfer to profit and loss

 

 

-

 

 

 

 

 

7

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

 

 

 

 

(48)

 

 

 

 

 

(29)

 

 

Tax relating to items that may be reclassified

 

 

(14)

 

 

 

 

 

9

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of other comprehensive (expense)/income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   of Jardine Matheson

 

 

(25)

 

 

 

 

 

30

 

 

 

 

 

56

 

 

Share of other comprehensive (expense)/income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   of associates and joint ventures

 

 

(333)

 

 

 

 

 

220

 

 

 

 

 

345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,077)

 

 

 

 

 

352

 

 

 

 

 

537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (expense)/income for the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   period, net of tax

 

 

(1,076)

 

 

 

 

 

289

 

 

 

 

 

525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

1,138

 

 

 

 

 

4,835

 

 

 

 

 

8,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

506

 

 

 

 

 

2,496

 

 

 

 

 

4,701

 

 

Non-controlling interests

 

 

632

 

 

 

 

 

2,339

 

 

 

 

 

4,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,138

 

 

 

 

 

4,835

 

 

 

 

 

8,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2018

US$m

 

 

 

 

2017

US$m restated

 

 

 

 

2017

US$m restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

2,698

 

 

 

3,070

 

 

 

2,832

 

Tangible assets

 

6,233

 

 

 

5,977

 

 

 

6,291

 

Investment properties

 

33,671

 

 

 

30,889

 

 

 

33,100

 

Bearer plants

 

475

 

 

 

512

 

 

 

498

 

Investment in Jardine Matheson

 

3,335

 

 

 

2,818

 

 

 

3,103

 

Associates and joint ventures

 

12,309

 

 

 

11,180

 

 

 

12,189

 

Other investments

 

2,826

 

 

 

1,243

 

 

 

2,629

 

Non-current debtors

 

3,034

 

 

 

3,210

 

 

 

3,019

 

Deferred tax assets

 

372

 

 

 

367

 

 

 

375

 

Pension assets

 

5

 

 

 

-

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

64,958

 

 

 

59,266

 

 

 

64,041

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

 

3,006

 

 

 

1,990

 

 

 

2,811

 

Stocks and work in progress

 

2,555

 

 

 

2,639

 

 

 

2,681

 

Current debtors

 

6,398

 

 

 

5,891

 

 

 

6,043

 

Current investments

 

22

 

 

 

50

 

 

 

23

 

Current tax assets

 

180

 

 

 

163

 

 

 

162

 

Bank balances and other liquid funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

4,667

 

 

 

5,064

 

 

 

5,061

 

- financial services companies

 

173

 

 

 

234

 

 

 

241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,840

 

 

 

5,298

 

 

 

5,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,001

 

 

 

16,031

 

 

 

17,022

 

Assets classified as held for sale

 

5

 

 

 

3

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

17,006

 

 

 

16,034

 

 

 

17,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

81,964

 

 

 

75,300

 

 

 

81,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

56

 

 

 

56

 

 

 

56

 

Share premium and capital reserves

 

1,015

 

 

 

1,009

 

 

 

1,011

 

Revenue and other reserves

 

31,898

 

 

 

29,386

 

 

 

31,486

 

Own shares held

 

(2,080)

 

 

 

(1,928)

 

 

 

(2,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' funds

 

30,889

 

 

 

28,523

 

 

 

30,553

 

Non-controlling interests

 

27,474

 

 

 

25,937

 

 

 

27,677

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

58,363

 

 

 

54,460

 

 

 

58,230

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

6,484

 

 

 

4,962

 

 

 

5,856

 

- financial services companies

 

1,652

 

 

 

1,510

 

 

 

1,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,136

 

 

 

6,472

 

 

 

7,343

 

Deferred tax liabilities

 

520

 

 

 

549

 

 

 

515

 

Pension liabilities

 

296

 

 

 

293

 

 

 

297

 

Non-current creditors

 

233

 

 

 

501

 

 

 

251

 

Non-current provisions

 

159

 

 

 

139

 

 

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

9,344

 

 

 

7,954

 

 

 

8,557

 

 

 

 

 

 

 

 

 

 

 

 

 

Current creditors

 

8,400

 

 

 

7,792

 

 

 

8,671

 

Current borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

3,474

 

 

 

2,274

 

 

 

2,978

 

- financial services companies

 

1,845

 

 

 

2,410

 

 

 

2,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,319

 

 

 

4,684

 

 

 

5,132

 

Current tax liabilities

 

413

 

 

 

316

 

 

 

338

 

Current provisions

 

125

 

 

 

94

 

 

 

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,257

 

 

 

12,886

 

 

 

14,281

 

Liabilities classified as held for sale

 

-

 

 

 

-

 

 

 

6

 

Current liabilities

 

14,257

 

 

 

12,886

 

 

 

14,287

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

23,601

 

 

 

20,840

 

 

 

22,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

81,964

 

 

 

75,300

 

 

 

81,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2018 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as previously reported

56

 

816

 

195

 

32,604

 

304

 

264

 

(7)

 

(1,683)

 

(2,000)

 

30,549

 

27,672

 

58,221

- change in accounting policies (note 1)

-

 

-

 

-

 

31

 

-

 

-

 

-

 

(7)

 

-

 

24

 

50

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as restated

56

 

816

 

195

 

32,635

 

304

 

264

 

(7)

 

(1,690)

 

(2,000)

 

30,573

 

27,722

 

58,295

Total comprehensive income

-

 

-

 

-

 

971

 

-

 

1

 

5

 

(471)

 

-

 

506

 

632

 

1,138

Dividends paid by the Company (note 10)

-

 

-

 

-

 

(128)

 

-

 

-

 

-

 

-

 

-

 

(128)

 

-

 

(128)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(607)

 

(607)

Employee share option schemes

-

 

-

 

8

 

-

 

-

 

-

 

-

 

-

 

-

 

8

 

-

 

8

Scrip issued in lieu of dividends

-

 

-

 

-

 

5

 

-

 

-

 

-

 

-

 

-

 

5

 

-

 

5

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(80)

 

(80)

 

-

 

(80)

Subsidiaries acquired

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

2

 

2

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

21

 

21

Change in interests in subsidiaries

-

 

-

 

-

 

3

 

-

 

-

 

-

 

-

 

-

 

3

 

(311)

 

(308)

Change in interests in associates and joint ventures

-

 

-

 

-

 

2

 

-

 

-

 

-

 

-

 

-

 

2

 

15

 

17

Transfer

-

 

-

 

(4)

 

4

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2018

56

 

816

 

199

 

33,492

 

304

 

265

 

(2)

 

(2,161)

 

(2,080)

 

30,889

 

27,474

 

58,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2017 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as previously reported

56

 

816

 

204

 

28,498

 

304

 

262

 

(16)

 

(2,064)

 

(1,918)

 

26,142

 

24,064

 

50,206

- change in accounting policies (note 1)

-

 

-

 

-

 

40

 

-

 

-

 

-

 

(8)

 

-

 

32

 

42

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as restated

56

 

816

 

204

 

28,538

 

304

 

262

 

(16)

 

(2,072)

 

(1,918)

 

26,174

 

24,106

 

50,280

Total comprehensive income

-

 

-

 

-

 

2,283

 

-

 

-

 

(9)

 

222

 

-

 

2,496

 

2,339

 

4,835

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

 

30,695

 

304

 

262

 

(25)

 

(1,850)

 

(1,928)

 

28,523

 

25,937

 

54,460

 

 

 

Year ended 31st December 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as previously reported

56

 

816

 

204

 

28,498

 

304

 

262

 

(16)

 

(2,064)

 

(1,918)

 

26,142

 

24,064

 

50,206

- change in accounting policies (note 1)

-

 

-

 

-

 

40

 

-

 

-

 

-

 

(8)

 

-

 

32

 

42

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as restated

56

 

816

 

204

 

28,538

 

304

 

262

 

(16)

 

(2,072)

 

(1,918)

 

26,174

 

24,106

 

50,280

Total comprehensive income

-

 

-

 

-

 

4,308

 

-

 

2

 

9

 

382

 

-

 

4,701

 

4,240

 

8,941

Dividends paid by the Company

-

 

-

 

-

 

(177)

 

-

 

-

 

-

 

-

 

-

 

(177)

 

-

 

(177)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(766)

 

(766)

Unclaimed dividends forfeited

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Employee share option schemes

-

 

-

 

12

 

-

 

-

 

-

 

-

 

-

 

-

 

12

 

-

 

12

Scrip issued in lieu of dividends

-

 

-

 

-

 

7

 

-

 

-

 

-

 

-

 

-

 

7

 

-

 

7

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(82)

 

(82)

 

-

 

(82)

Subsidiaries acquired

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

107

 

107

Subsidiaries disposed of

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1)

 

(1)

Capital repayment to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(3)

 

(3)

Change in interests in subsidiaries

-

 

-

 

-

 

(48)

 

-

 

-

 

-

 

-

 

-

 

(48)

 

(16)

 

(64)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(35)

 

-

 

-

 

-

 

-

 

-

 

(35)

 

10

 

(25)

Transfer

-

 

-

 

(21)

 

21

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2017

56

 

816

 

195

 

32,615

 

304

 

264

 

(7)

 

(1,690)

 

(2,000)

 

30,553

 

27,677

 

58,230

 

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

 

 

 

2018

US$m

 

 

 

 

 

2017

US$m restated

 

 

 

2017

US$m restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

2,201

 

 

 

4,262

 

 

 

7,958

 

Change in fair value of investment properties

 

(665)

 

 

 

(2,694)

 

 

 

(4,701)

 

Depreciation and amortisation

 

497

 

 

 

445

 

 

 

917

 

Other non-cash items

 

384

 

 

 

(26)

 

 

 

15

 

(Increase)/decrease in working capital

 

(889)

 

 

 

30

 

 

 

(381)

 

Interest received

 

74

 

 

 

77

 

 

 

167

 

Interest and other financing charges paid

 

(207)

 

 

 

(165)

 

 

 

(310)

 

Tax paid

 

(374)

 

 

 

(291)

 

 

 

(694)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,021

 

 

 

1,638

 

 

 

2,971

 

Dividends from associates and joint ventures

 

342

 

 

 

458

 

 

 

779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

1,363

 

 

 

2,096

 

 

 

3,750

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of subsidiaries (note 12(a))

 

(84)

 

 

 

(10)

 

 

 

(56)

 

Purchase of shares in Jardine Matheson

 

(99)

 

 

 

-

 

 

 

(95)

 

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

 

(514)

 

 

 

(1,079)

 

 

 

(1,525)

 

Purchase of other investments (note 12(c))

 

(617)

 

 

 

(147)

 

 

 

(1,609)

 

Purchase of intangible assets

 

(51)

 

 

 

(94)

 

 

 

(170)

 

Purchase of tangible assets

 

(601)

 

 

 

(517)

 

 

 

(1,055)

 

Additions to investment properties

 

(99)

 

 

 

(216)

 

 

 

(370)

 

Additions to bearer plants

 

(20)

 

 

 

(19)

 

 

 

(50)

 

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

 

(395)

 

 

 

(304)

 

 

 

(853)

 

Advance and repayment from associates and joint ventures

(note 12(e))

 

534

 

 

 

232

 

 

 

658

 

Sale of subsidiaries

 

4

 

 

 

-

 

 

 

86

 

Sale of associates and joint ventures

 

-

 

 

 

13

 

 

 

66

 

Redemption of convertible bonds by Zhongsheng

 

-

 

 

 

398

 

 

 

398

 

Sale of other investments (note 12(f))

 

136

 

 

 

117

 

 

 

369

 

Sale of intangible assets

 

12

 

 

 

1

 

 

 

2

 

Sale of tangible assets

 

10

 

 

 

9

 

 

 

20

 

Sale of investment properties

 

-

 

 

 

42

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

(1,784)

 

 

 

(1,574)

 

 

 

(4,142)

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital contribution from/(repayment to) non-controlling interests

 

21

 

 

 

-

 

 

 

(3)

 

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

 

(308)

 

 

 

15

 

 

 

(49)

 

Drawdown of borrowings

 

3,762

 

 

 

2,271

 

 

 

6,178

 

Repayment of borrowings

 

(2,555)

 

 

 

(1,971)

 

 

 

(4,500)

 

Dividends paid by the Company

 

(244)

 

 

 

(228)

 

 

 

(331)

 

Dividends paid to non-controlling interests

 

(607)

 

 

 

(520)

 

 

 

(774)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

69

 

 

 

(433)

 

 

 

521

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

(352)

 

 

 

89

 

 

 

129

 

Cash and cash equivalents at beginning of period

 

5,298

 

 

 

5,091

 

 

 

5,091

 

Effect of exchange rate changes

 

(144)

 

 

 

64

 

 

 

78

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

4,802

 

 

 

5,244

 

 

 

5,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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' 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 2017 annual financial statements except for the adoption of IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers' from 1st January 2018 as set out below.

 

The other amendments, which are effective in 2018 and relevant to the Group's operations, do not have a significant effect on the Group's accounting policies.

 

The Group has not early adopted any standard, interpretation or amendment that have been issued but not yet effective.

 

IFRS 9 'Financial Instruments'

 

Under IFRS 9, the gains and losses arising from changes in fair value of the Group's investments in equity securities, previously classified as available-for-sale, will be recognised in profit and loss, instead of through other comprehensive income.  Such fair value gains or losses on revaluation of these investments are classified as non-trading items, and do not have any impact on the Group's underlying profit attributable to shareholders and shareholders' funds.  The new forward-looking expected credit loss model, which replaces the incurred loss impairment model, mainly affects the loan impairment provisions of the Group's financial services companies in Indonesia.  The new hedge accounting rules, which align the accounting for hedging instruments closely with the Group's risk management practices, has no significant impact to the Group.

 

IFRS 15 'Revenue from Contracts with Customers'

 

IFRS 15 establishes a comprehensive framework for the recognition of revenue.  It replaces IAS 11 'Construction Contracts' and IAS 18 'Revenue' which covers contracts for goods and services.  The core principle in the framework is that revenue is recognised when control of a good or service transfers to a customer.  The new standard mainly changes the Group's revenue recognition on certain property sales, from completion method to percentage of completion method.  This will lead to earlier recognition of revenue when compared to the current completion method. 

 

Changes to accounting policies on adoption of IFRS 9 and 15 have been applied retrospectively and the comparative financial statements have been restated.

 

 

 

The effects of adopting IFRS 9 and IFRS 15

 

(a)     On the consolidated profit and loss account for the six months ended 30th June 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase/(decrease) in

 

 

 

 

 

 

 

 

 

profit upon adopting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IFRS 9

US$m

 

 

 

IFRS 15

US$m

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

-

 

 

 

(647)

 

 

 

Net operating costs

 

 

 

150

 

 

 

589

 

 

 

Share of results of Jardine Matheson

 

 

 

1

 

 

 

(1)

 

 

 

Share of results of associates and joint ventures

 

 

 

6

 

 

 

-

 

 

 

Tax

 

 

 

-

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

 

 

157

 

 

 

(49)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company*

 

 

 

140

 

 

 

(25)

 

 

 

Non-controlling interests

 

 

 

17

 

 

 

(24)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

157

 

 

 

(49)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Further analysed as:

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders

 

 

 

-

 

 

 

(25)

 

 

 

Non-trading items

 

 

 

140

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

 

 

140

 

 

 

(25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic underlying earnings per share (US$)

 

 

 

-

 

 

 

(0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted underlying earnings per share (US$)

 

 

 

-

 

 

 

(0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (US$)

 

 

 

0.24

 

 

 

(0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (US$)

 

 

 

0.24

 

 

 

(0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                   

 

 

(b)     On the consolidated statement of comprehensive income for the six months ended 30th June 2017:

 

 

 

 

 

 

 

Increase/(decrease) in

total comprehensive

income upon adopting

 

 

 

 

 

 

 

 

IFRS 9

US$m

 

 

 

 

 

 

IFRS 15

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Other comprehensive income

 

 

 

 

157

 

 

 

 

 

 

(49)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to

 profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain arising during the period

 

 

 

 

-

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revaluation of other investments at fair value through other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain arising during the period

 

 

 

 

(150)

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of other comprehensive income of Jardine Matheson

 

 

 

 

(1)

 

 

 

 

 

 

-

 

 

 

Share of other comprehensive income of associates and joint ventures

 

 

 

 

(6)

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income for the period, net of tax

 

 

 

 

(157)

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

 

-

 

 

 

 

 

 

(47)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

 

 

-

 

 

 

 

 

 

(24)

 

 

 

Non-controlling interests

 

 

 

 

-

 

 

 

 

 

 

(23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

(47)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c)     On the consolidated balance sheet at 1st January

 

 

 

Increase/(decrease) upon adopting

 

 

IFRS 9

 

IFRS 15

 

Total

 

 

208 US$m

 

2017 US$m

 

2018 US$m

 

2017

US$m 

 

2018 US$m

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment in Jardine Matheson

-

 

-

 

(15)

 

(12)

 

(15)

 

(12)

 

Associates and joint ventures

(22)

 

-

 

28

 

25

 

6

 

25

 

Other investments

58

 

-

 

-

 

-

 

58

 

-

 

Deferred tax assets

-

 

-

 

2

 

1

 

2

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

-

 

-

 

(136)

 

(328)

 

(136)

 

(328)

 

Stocks and work in progress

-

 

-

 

66

 

30

 

66

 

30

 

Current debtors

(7)

 

-

 

(79)

 

(54)

 

(86)

 

(54)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Revenue and other reserves

7

 

-

 

17

 

32

 

24

 

32

 

Non-controlling interests

22

 

-

 

28

 

42

 

50

 

42

 

Deferred tax liabilities

-

 

-

 

8

 

13

 

8

 

13

 

Current creditors

-

 

-

 

(187)

 

(425)

 

(187)

 

(425)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 Increase in revenue and other reserves at 1st January 2018 included a fair value gain of US$20 million on revaluation of unlisted equity investments previously stated at cost but measured at fair value at the date of initial application of IFRS 9.

 

(d)     Changes in principal accounting policies on adoption of IFRS 9 and 15

 

Investments

 

The Group classifies its investments into the following measurement categories:

 

(i)         those to be measured subsequently at fair value, either through other comprehensive income or through profit and loss; and

(ii)        those to be measured at amortised cost.     

 

The classification is based on the management's business model and their contractual cash flows characteristics.

 

Equity investments are measured at fair value with fair value gains and losses recognised in profit and loss, unless management has elected to recognise the fair value gains and losses through other comprehensive income.  For equity investments measured at fair value through other comprehensive income, gains or losses realised upon disposal are not reclassified to profit and loss.

 

Debt investments that are held for collection of contractual cash flows and for sale, where the cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income.  On disposal, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit and loss.

 

 

Debt investments that are held for collection of contractual cash flows till maturity, where the cash flows represent solely payments of principal and interest, are measured at amortised cost.  Any gain or loss arising on derecognition is recognised in profit and loss.

 

The Group assesses on a forward-looking basis the expected credit losses associated with both types of debt investments.  They are considered 'credit impaired' when one or more events that have a detrimental impact on the estimated future cash flows have occurred.  Any impairment is recognised in profit and loss.

 

All purchases and sales of investments are recognised on the trade date, which is the date that the Group commits to purchase or sell the investments.

 

Debtors

Consumer financing debtors and financing lease receivables are measured at amortised cost using the effective interest method.  The gross amount due from customers for contract work is stated at cost plus an appropriate proportion of profit, established by reference to the percentage of completion, and after deducting progress payments and provisions for foreseeable losses.  Repossessed assets of finance companies are measured at the lower of the carrying amount of the debtors in default and fair value less costs to sell.  All other debtors, excluding derivative financial instruments, are measured at amortised cost except where the effect of discounting would be immaterial.  The Group assesses on a forward-looking basis the expected credit losses associated with its consumer financing debtors.  The impairment measurement is subject to whether there has been a significant increase in credit risk.  For trade debtors, the Group applied the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the debtors.  The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in arriving at operating profit.  When a debtor is uncollectible, it is written off against the allowance account.  Subsequent recoveries of amount previously written off are credited to profit and loss.

 

Debtors with maturities greater than 12 months after the balance sheet date are classified under non-current assets.

 

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 fair value through profit and loss; 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.

 

 

          Revenue recognition

          Revenue is measured at the fair value of the consideration received and receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and sales related taxes.

 

(i)    Revenue from the sale of goods is recognised when or as the control of the asset is transferred to the customer, which generally coincides with the time when the goods are delivered to customers.

 

(ii)   Revenue from properties for sale and engineering and construction services are recognised when or as the control of the asset is transferred to the customer.  Depending on the terms of the contract and the laws that apply to the contract, control of the asset may transfer over time or at a point in time. Control of the asset is transferred over time if the Group's performance:

·     provides all of the benefits received and consumed simultaneously by the customer; or

·     creates and enhances an asset that the customer controls as the Group performs; or

·     do not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

 

If control of the asset transfers over time, revenue is recognised over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation.  Otherwise, revenue is recognised at a point in time when the customer obtains control of the asset.

 

The progress towards complete satisfaction of the performance obligation is measured based on the Group's efforts or inputs to the satisfaction of the performance obligation, by reference to the contract costs incurred up to the end of reporting period as a percentage of total estimated costs for each contract.

 

For properties for sale under development and sales contract for which the control of the property is transferred at a point in time, revenue is recognised when the customer obtains the physical possession or the legal title of the completed property and the Group has present right to payment and the collection of the consideration is probable.

 

In determining the transaction price, the Group adjusts the promised amount of consideration for the effect of a financing component if it is significant.

 

For engineering and construction services, the Group's performance creates or enhances an asset or work in progress that the customer controls as the asset is created or enhanced, thus the Group satisfies a performance obligation and recognises revenue over time, by reference to completion of the specific transaction assessed on the basis of the actual costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract.

 

 

(iii)   Receipts under operating leases are accounted for on an accrual basis over the lease terms.

 

(iv)  Revenue from consumer financing and financing leases is recognised over the term of the respective contracts based on a constant rate of return on the net investment.

 

(v)   Interest income from a financial asset is recognised on a time-proportion basis using the effective interest method.

 

(vi)  Dividend income is recognised when the right to receive payment is established.

 

 

2.    Revenue

 

 

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson

 

10,313

 

 

 

6,655

 

 

 

-

 

 

 

-

 

 

Hongkong Land

 

2,126

 

 

 

1,852

 

 

 

1,516

 

 

 

816

 

 

Dairy Farm

 

12,215

 

 

 

10,448

 

 

 

5,929

 

 

 

5,505

 

 

Mandarin Oriental

 

492

 

 

 

462

 

 

 

308

 

 

 

287

 

 

Jardine Cycle & Carriage

 

3,545

 

 

 

3,280

 

 

 

1,041

 

 

 

984

 

 

Astra

 

15,797

 

 

 

14,850

 

 

 

8,148

 

 

 

7,369

 

 

Intersegment transactions

 

(140)

 

 

 

(130)

 

 

 

(3)

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44,348

 

 

 

37,417

 

 

 

16,939

 

 

 

14,959

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(12,617)

 

 

 

(11,097)

 

 

Other operating income

 

303

 

 

 

414

 

 

Selling and distribution costs

 

(1,865)

 

 

 

(1,758)

 

 

Administration expenses

 

(952)

 

 

 

(889)

 

 

Other operating expenses

 

(272)

 

 

 

(61)

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,403)

 

 

 

(13,391)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of other investments

 

(242)

 

 

 

150

 

 

Sale of businesses

 

9

 

 

 

-

 

 

Change in interests in associates and joint ventures

 

-

 

 

 

13

 

 

Other

 

(1)

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

(234)

 

 

 

163

 

 

 

4.    Share of Results of Jardine Matheson

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

39

 

 

 

41

 

 

Jardine Motors

 

35

 

 

 

154

 

 

Jardine Lloyd Thompson

 

20

 

 

 

21

 

 

Corporate and other interests

 

19

 

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

113

 

 

 

235

 

 

 

 

 

 

 

 

 

 

 

Share of results of Jardine Matheson included the

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

5

 

 

 

-

 

 

Change in fair value of other investments

 

-

 

 

 

1

 

 

Sale of property interests

 

-

 

 

 

111

 

 

Sale of businesses

 

-

 

 

 

2

 

 

Value added tax recovery in Jardine Motors

 

-

 

 

 

5

 

 

Other

 

(1)

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

119

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Matheson

 

38

 

 

 

-

 

 

Hongkong Land

 

72

 

 

 

58

 

 

Dairy Farm

 

62

 

 

 

61

 

 

Mandarin Oriental

 

1

 

 

 

3

 

 

Jardine Cycle & Carriage

 

64

 

 

 

57

 

 

Astra

 

209

 

 

 

271

 

 

Corporate and other interests

 

-

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

446

 

 

 

458

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

(1)

 

 

 

(56)

 

 

Change in fair value of other investments

 

1

 

 

 

6

 

 

Change in interest in an associate

 

-

 

 

 

8

 

 

Sale of businesses

 

-

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

(41)

 

 

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

 

 

6.    Tax

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax charged to profit and loss is analysed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current tax

 

(432)

 

 

 

(369)

 

 

Deferred tax

 

16

 

 

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

(416)

 

 

 

(336)

 

 

 

 

 

 

 

 

 

 

 

Greater China

 

(114)

 

 

 

(113)

 

 

Southeast Asia

 

(299)

 

 

 

(221)

 

 

Rest of the world

 

(3)

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(416)

 

 

 

(336)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

-

 

 

 

1

 

 

Cash flow hedges

 

(14)

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

(14)

 

 

 

10

 

 

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$17 million and credit of US$1 million (2017: charge of US$21 million and US$4 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$158 million and US$5 million (2017: charge of US$202 million and credit of US$1 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

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating segments:

 

 

 

 

 

 

 

 

Jardine Matheson

 

146

 

 

 

134

 

 

Hongkong Land

 

228

 

 

 

235

 

 

Dairy Farm

 

167

 

 

 

164

 

 

Mandarin Oriental

 

17

 

 

 

12

 

 

Jardine Cycle & Carriage

 

63

 

 

 

46

 

 

Astra

 

266

 

 

 

236

 

 

 

 

 

 

 

 

 

 

 

 

 

887

 

 

 

827

 

 

Corporate and other interests

 

(59)

 

 

 

(65)

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders*

 

828

 

 

 

762

 

 

Increase in fair value of investment properties

 

337

 

 

 

1,311

 

 

Other non-trading items

 

  (181)

 

 

 

269

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

984

 

 

 

2,342

 

 

      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$984 million (2017: US$2,342 million) and on the weighted average number of 571 million (2017: 581 million) shares in issue during the period.

 

Diluted earnings per share are calculated on profit attributable to shareholders of US$983 million (2017: US$2,342 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 571 million (2017: 581 million) shares in issue during the period.

 

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

 

 

 

 

Ordinary shares

in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares in issue

 

1,108

 

 

 

1,108

 

 

Company's share of shares held by Jardine Matheson

 

(537)

 

 

 

(527)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for earnings per

share calculation

 

571

 

 

 

581

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

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

 

984

 

 

1.72

 

 

1.72

 

 

2,342

 

 

4.03

 

 

4.03

 

 

Non-trading items (note 9)

 

(156)

 

 

 

 

 

 

 

 

(1,580)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders

 

828

 

 

1.45

 

 

1.45

 

 

762

 

 

1.31

 

 

1.31

 

 

 

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 and on equity investments which are fair value through profit and loss; 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

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Matheson

 

4

 

 

 

119

 

 

Hongkong Land

 

337

 

 

 

1,322

 

 

Dairy Farm

 

8

 

 

 

-

 

 

Jardine Cycle & Carriage

 

(180)

 

 

 

6

 

 

Astra

 

-

 

 

 

11

 

 

Corporate and other interests

 

(13)

 

 

 

122

 

 

 

 

 

 

 

 

 

 

 

 

 

156

 

 

 

1,580

 

 

 

 

 

 

 

 

 

 

 

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

 

332

 

 

 

1,304

 

 

- other

 

5

 

 

 

7

 

 

 

 

337

 

 

 

1,311

 

 

Change in fair value of other investments

 

(187)

 

 

 

140

 

 

Sale of property interests

 

-

 

 

 

111

 

 

Sale of businesses

 

7

 

 

 

3

 

 

Change in interests in associates and joint ventures

 

-

 

 

 

10

 

 

Value added tax recovery in Jardine Motors

 

-

 

 

 

5

 

 

Other

 

(1)

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

156

 

 

 

1,580

 

 

 

 

 

 

 

 

 

 

 

10.  Dividends

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

US$m

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final dividend in respect of 2017 of US¢22.50

 

 

 

 

 

 

 

 

 (2016: US¢21.00) per share

 

249

 

 

 

233

 

 

Company's share of dividends paid on the shares

 

 

 

 

 

 

 

 

held by Jardine Matheson

 

(121)

 

 

 

(111)

 

 

 

 

 

 

 

 

 

 

 

 

 

128

 

 

 

122

 

 

An interim dividend in respect of 2018 of US¢10.00 (2017: US¢9.50) per share amounting to a total of US$111 million (2017: US$105 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$54 million (2017: US$50 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2018.

 

 

11.  Financial Instruments

 

Financial instruments by category

 

The fair values of financial assets and financial liabilities, together with carrying amounts at

30th June 2018 and 31st December 2017 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 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at

fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- equity investments

 

-

 

 

2,326

 

 

-

 

 

-

 

 

-

 

 

2,326

 

 

2,326

 

 

- debt investments

 

-

 

 

-

 

 

522

 

 

-

 

 

-

 

 

522

 

 

522

 

 

Derivative financial instruments

 

183

 

 

-

 

 

-

 

 

-

 

 

-

 

 

183

 

 

183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

183

 

 

 

 

522

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at

fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debtors

 

-

 

 

-

 

 

-

 

 

7,714

 

 

-

 

 

7,714

 

 

7,753

 

 

Bank balances

 

-

 

 

-

 

 

-

 

 

4,840

 

 

-

 

 

4,840

 

 

4,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

-

 

 

12,554

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at

fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

(24)

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(24)

 

 

(24)

 

 

Contingent consideration payable

 

-

 

 

(9)

 

 

-

 

 

-

 

 

-

 

 

(9)

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24)

 

 

 

 

-

 

 

-

 

 

-