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Jardine Strategic Hldgs Ltd   -  JDS   

Half-year Report

Released 10:53 02-Aug-2019

RNS Number : 6035H
Jardine Strategic Hldgs Ltd
02 August 2019
 

To:    Business Editor                                                                          2nd August 2019

                                                                                                             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 2019

 

Highlights

·    Underlying profit down 1%

·    US$0.9 billion gain on JLT sale

·    Lower contribution from Astra

·    Jardine Motors, Hongkong Land and Dairy Farm deliver profit growth

 

"The Group's profit decreased by 1% in the first half.  While most businesses delivered resilient performances, the car market in Indonesia was weaker.  In the second half of the year we expect to benefit from further growth in Hongkong Land and Dairy Farm, but the Group's overall results will depend to a large extent on consumer sentiment in our key markets."

 

Ben Keswick, Chairman and Managing Director

 

Results

                                                                                             (unaudited)

Six months ended 30th June

 

 

2019

US$m

2018

US$m

Restated

Change

%

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

 

50,274

44,348

+13

Revenue

15,999

16,939

-6

Underlying profit* attributable to shareholders

779

789

-1

Profit attributable to shareholders

1,657

945

+75

 

US$

US$

%

Underlying earnings per share*

1.38

1.38

-

Earnings per share

2.93

1.66

+77

Net asset value per share#

61.10

68.46

-11

 

US¢

US¢

%

Interim dividend per share

10.50

10.00

+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 2019 and 31st December 2018, 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 16 'Leases', as set out in note 1 to the condensed financial statements.

         

The interim dividend of US¢10.50 per share will be payable on 17th October 2019 to shareholders on the register of members at the close of business on 23rd August 2019 and will be available in cash with a scrip alternative.

 

 

Jardine Strategic Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2019

 

Overview

 

The Group's profit in the first half was impacted by a slow start to the year by Astra, while Hongkong Land and Dairy Farm both saw increases in profit.  The Group faced challenging conditions in the period, primarily caused by weaker consumer sentiment in Indonesia.

 

Results

 

The Group's underlying profit for the first six months of 2019 was US$779 million, US$10 million or 1% below the corresponding period last year, and underlying earnings per share were flat at US$1.38.  The revenue of the Group for the period was 6% lower at US$16 billion, while revenue, including 100% of Jardine Matheson, associates and joint ventures, was up 13% at US$50.3 billion.

 

Within Jardine Matheson's directly-held businesses, there was a loss of earnings from Jardine Lloyd Thompson with the sale of its stake completed in April 2019.  Jardine Pacific saw lower overall results, mainly due to the timing of project completions in Gammon.  There was a stronger contribution from JEC and steady performances in Jardine Schindler and Jardine Restaurants, but lower results from Hactl.  Jardine Motors saw its earnings increase overall, benefitting from a higher contribution from its investment in Zhongsheng and an improved result from Zung Fu in mainland China, partially offset by lower earnings at Zung Fu in Hong Kong.

 

Hongkong Land's profits rose modestly, as its results benefitted from increased contributions from both Investment Properties and Development Properties, partially offset by higher financing costs due to land acquisitions. There were continued positive rental reversions in the Hong Kong office portfolio and the Hong Kong retail portfolio remained effectively fully occupied, while the profit contribution from development properties in mainland China increased in the first half of the year compared with the equivalent period last year.

 

Dairy Farm saw a strong performance from its Health and Beauty business and solid sales performances from Convenience, Home Furnishings and Restaurants.  The group's underlying profit benefitted from higher contributions from Yonghui and Robinsons Retail, partially offset by continuing business transformation costs.  The Food business continued to face challenges, but is beginning to see signs of growth in underlying sales performance in Southeast Asia as the transformation plan is implemented.

 

At Mandarin Oriental, underlying profit was lower during the first half of the year, primarily due to the closure of The Excelsior in Hong Kong and reduced earnings from the Bangkok hotel, which was largely closed in March 2019 for a major renovation.  Overall results across the rest of the group's properties were broadly flat.

 

In Southeast Asia, JC&C saw lower contribution from Truong Hai Auto Corporation in Vietnam.  Astra's performance was weaker in the period, with lower contributions from its automotive business and agribusiness, offsetting improved performances from its financial services and heavy equipment, mining, construction and energy businesses.

 

There was a non-trading net gain in the first half of US$878 million, compared with a non-trading net gain of US$156 million in the first half of 2018.  The sale of the Group's interest in Jardine Lloyd Thompson produced a net gain of US$874 million.  There was also a net gain of US$52 million related to the fair value of other investments, offset by a net non-trading loss of US$44 million from revaluations of investment properties in Hongkong Land.   The Group's profit attributable to shareholders for the period was US$1,657 million, compared with US$945 million in 2018.  The Board has declared an increased interim dividend of US¢10.50 per share, 5% higher than last year.

 

Business Developments

 

The offer for Jardine Lloyd Thompson by Marsh & McLennan completed on 1st April 2019 and the Group received net proceeds of US$2.1 billion for the sale of its stake.  As a result of the sale, the Group did not recognise any profit from JLT in the first half of 2019, compared with a profit contribution of U$20 million in the same period in 2018.

 

WF CENTRAL in Beijing is performing in line with expectations and its hotel, Mandarin Oriental Wangfujing, opened in March 2019.  Planning of the prime commercial joint venture project in the central business district of Bangkok is well underway, with construction expected to commence in early 2020 and completion scheduled for 2025.  During the period, the group acquired a residential site in southwestern Wuhan.  The joint venture projects in the rest of Southeast Asia are progressing on schedule.

 

Dairy Farm is implementing a range of initiatives as part of its multi-year transformation programme aimed at improving business performance and achieving long-term sustainable growth.  Work is underway to transform one of the group's Giant hypermarkets in Indonesia into an IKEA store as a pilot scheme for the repurposing of Food space.  Maxim's acquired the Starbucks franchise in Thailand, adding 372 stores in Thailand to its existing stores in Singapore and Hong Kong.

 

Mandarin Oriental closed The Excelsior, Hong Kong, at the end of March and demolition work is underway ahead of the planned construction of a mixed-use commercial building.  The group opened four new hotels in the first half of the year, in Beijing, Doha, Dubai and Lake Como.  In addition, the group signed two new management contracts, for a second hotel and residences in Istanbul and new standalone residences in New York. 

 

In Astra, a 44.5% interest was acquired in the Surabaya-Mojokerto toll road for US$110 million, further strengthening Astra's portfolio in the Trans Java network.

 

People

 

Charles Allen-Jones stepped down from the Board on 9th May 2019.  We would like to express our gratitude for the significant contribution he made to the Group over many years.  We are pleased to welcome Lincoln Leong, who joined the Board on 2nd August 2019.

 

Outlook

 

The Group's profit decreased by 1% in the first half.  While most businesses delivered resilient performances, the car market in Indonesia was weaker.  In the second half of the year we expect to benefit from further growth in Hongkong Land and Dairy Farm, but the Group's overall results will depend to a large extent on consumer sentiment in our key markets.

 

Ben Keswick

Chairman and Managing Director

 

Operating Review

 

Jardine Pacific

 

Jardine Pacific reported an underlying net profit of US$56 million, compared with US$62 million in the equivalent period in 2018.  Improvements in business efficiency at JEC resulted in profit growth with its Hong Kong operations performing well, while Jardine Schindler and Jardine Restaurants each produced a steady contribution.  Gammon's earnings were, however, down due to the timing of project completions, although its order book remains strong at over US$4 billion. Hactl's results were impacted by a reduction in cargo throughput, slightly better than the market.  Greatview saw a softer sales performance in its China business.

 

Jardine Motors

 

Jardine Motors saw its underlying net profit for the first half increase by 23% to US$107 million.  There was a higher contribution from Zhongsheng as a result of the inclusion of a full six months' profit, for the period from July to December 2018, due to the timing of the reporting of its results.  In 2018 only two months of results were included.  Zung Fu in mainland China reported a higher contribution, with a good performance from its after-sales business.  In Hong Kong, however, profits were lower as a result of the timing of new car deliveries following delays in obtaining vehicle certifications, as well as weaker consumer sentiment. The United Kingdom business saw improved profit due to higher margins and growth in aftersales, but profit was lower than the corresponding period in 2018 due to the profit received last year on the sale of dealership land.

 

Hongkong Land

 

Hongkong Land's underlying profit attributable to shareholders for the first six months was US$466 million, up 2% from the equivalent period in 2018Profit attributable to shareholders was US$411 million after accounting for a net loss of US$55 million arising primarily on the revaluation of investment properties.  This compares with a profit of US$1,124 million in the first half of 2018, which included a net revaluation gain of US$669 million.

 

Hongkong Land's investment properties benefitted from the continuing tight supply in the Hong Kong Central office leasing market.  While vacancy in the group's Central office portfolio was 2.8% at the end of June 2019, it would have been 1.6% taking account of new lease commitments.  At the end of 2018, office vacancy was 1.4%.  The retail portfolio remained effectively fully occupied.  In Singapore, there were positive rental reversions and vacancy in the group's office portfolio was 3.3% at the end of June 2019, although it would have been 0.9% taking account of new lease commitments.  Vacancy was 2.5% at the end of 2018.

 

In mainland China, the profit contribution from development properties in the first half of 2019 was higher than the equivalent period in 2018, as a result of more sales completions.  At 30th June 2019 the group had US$1,714 million in sold but unrecognised contracted sales, compared with US$1,358 million at the end of 2018.  Both sales completions and contracted sales are in line with expectations and are expected to be stronger in the second half of the year.

 

The profit contribution from the Singapore business was lower than the prior year.  In 2018 profits were recognised on completion of the 1,327-unit Sol Acres executive condominium development.  Pre-sales are progressing satisfactorily at the Margaret Ville and Parc Esta projects, the construction of both of which is scheduled to complete by 2021.  The group's joint venture projects in the rest of Southeast Asia are progressing on schedule.

 

Dairy Farm

 

Dairy Farm saw sales of US$5.8 billion for the period by the group's subsidiaries, 3% lower than the prior year, or 1% lower at constant rates of exchange.  Underlying profit, restated following the adoption of the new lease accounting standard, IFRS16, was US$177 million, 5% higher than the same period last year, benefitting from improved profit margins from Yonghui, the deconsolidation of its associate business Yunchuang and the additional profit contribution from the group's investment in the Robinsons Retail business in the Philippines.  Costs associated with the group's business transformation programme impacted overall profit growth, with continued investment in key areas including people capability, IT infrastructure and digital development, in order to support future business development. 

 

In the Food business, sales in supermarkets and hypermarkets were lower due to the de-consolidation of Rustan Supercenters following its sale at the end of 2018.  The implementation of a regional store optimisation plan as part of the transformation of the business also impacted sales in Southeast Asia.  Underlying sales performance has begun to show signs of growth, reflecting improvements in quality, availability, price competitiveness and general operating standards, notably in Southeast Asia.  In North Asia, sales in Hong Kong continue to grow, particularly in upscale stores, but Taiwan is increasingly under threat from the aggressive space expansion of local competitors.

 

Sales in all of the group's other formats continued to show positive growth in the first half.  The Group's Convenience store operations achieved higher sales in all markets, with the strongest growth coming from stores in mainland China.  Overall profits were slightly lower as improved profits in Hong Kong and Macau were exceeded by investment in further store space growth in the period.

 

In Health and Beauty, strong sales were reported in North Asia, against substantial sales growth in the same period last year, reinforcing the strength and resilience of the Mannings brand.  Guardian in Southeast Asia also reported an encouraging performance.

 

IKEA achieved sales growth in all markets, but profitability was lower due to the increased cost of goods and pre-opening expenses for new stores under development in Taiwan and Indonesia.  E-commerce activities are growing, with positive results in all markets.  In May, IKEA opened its sixth store in Taiwan in Greater Taipei City, with encouraging initial results. 

 

Maxim's delivered good performances across all key businesses, especially restaurants, where customers have shown strong engagement with new franchises.

 

Yonghui reported strong underlying sales and profit growth, mainly driven by the continuing expansion of its store network and healthy like-for-like sales growth, while also benefitting from the partial divestment of Yunchuang, its new technology format, at the end of 2018.

 

Robinsons Retail reported good sales growth.

 

Mandarin Oriental

 

Mandarin Oriental's underlying profit for the first half of the year was US$10.7 million, compared with US$22.2 million in the equivalent period in 2018.  The lower profit was primarily due to the closure of The Excelsior, Hong Kong and reduced earnings from the Bangkok hotel, which was largely closed in March 2019 for a major renovation. 

 

Performances were mixed across the group's owned properties. In Asia, a slow-down in corporate business reduced earnings at the group's flagship Hong Kong hotel.  Results in Tokyo were notably better, while in the rest of the region performances were broadly flat. 

 

In Europe, earnings were higher at the London hotel, which continued to include insurance coverage for loss of profits due to the fire in June 2018.  In the same period last year, the hotel was only partially open whilst undergoing a renovation programme.  In Paris, results were lower as city-wide demand was impacted by demonstrations in the city.  In America, Boston performed well but results were weaker in Washington D.C. 

 

Jardine Cycle & Carriage

 

Jardine Cycle & Carriage reported an underlying profit for the period of US$407 million, down 1% compared with the equivalent period last year.  Profit attributable to shareholders increased by 147% to US$427 million, after accounting for net non-trading gains of US$20 million, which were principally unrealised fair value gains related to non-current investments.  

 

Astra's contribution to underlying profit fell 8% to US$326 million.  The group's Direct Motor Interests contributed an underlying profit of US$55 million, 22% below the previous year.  This was primarily due to a lower contribution from Truong Hai Auto Corporation in Vietnam due to pressure from competitors. There was an increase in overall vehicle sales in Cycle & Carriage Singapore but these were partly offset by lower margins.  There was a higher contribution from Tunas Ridean in Indonesia.  The results from Other Strategic Interests were broadly in line with the previous year.  There were lower contributions from Siam City Cement in Thailand and Refrigeration Electrical Engineering Corporation in Vietnam, while Vinamilk produced dividend income of US$28 million in the period, compared to US$24 million in the previous year. 

 

Astra

 

Astra reported net profit equivalent to US$691 million, under Indonesian accounting standards, 6% lower in its reporting currency, primarily due to lower contributions from its automotive business and agribusiness.  This more than offset increased contributions from the financial services and heavy equipment, mining, construction and energy businesses.

 

Net income from Astra's automotive business fell by 18% to US$244 million, with 6% lower car sales and increased manufacturing costs.  The overall wholesale car market declined by 13%.  Astra's market share increased from 48% to 53%, and 8 new models and 2 revamped models were launched.  Astra's Honda motorcycle sales were 8% higher, as the wholesale motorcycle market grew by 7% in the first half of 2019.  Astra's market share continued to be strong at 75%.  4 new models and 15 revamped models were launched.  Components business Astra Otoparts reported a 19% increase in net income at US$17 million, mainly due to higher revenue from the replacement market and export segments.

 

Net income from Astra's financial services division grew by 32% to US$199 million, mainly due to the recovery of non-performing loans, lower loan loss provisions and a larger loan portfolio.  Consumer finance businesses saw a 6% increase in the amount financed.  The net income contribution from car-focused finance companies increased by 39% to US$50 million, with lower non-performing loan losses, while the net income contribution from motorcycle-focused financing business increased by 10% to US$89 million, due to a larger loan portfolio.  Heavy equipment-focused finance operations saw a slight decrease in the amounts financed: the contribution to net income grew 32% to US$4 million, with lower loan provisions.  Permata Bank reported a significant increase in net income to US$50 million, mainly due to a higher level of recoveries from non-performing loans. General insurance company, Asuransi Astra Buana, reported net income growth of 9% at US$38 million, due to increased investment income.

 

Net income from Astra's Heavy Equipment, Mining, Construction and Energy increased by 2% to US$235 million, mainly due to the contribution from the new gold mining operation acquired in December 2018 and improved performance from mining contracting, partly offset by weaker heavy equipment sales.  United Tractors reported a 2% increase in net income to US$393 million.  Komatsu heavy equipment sales decreased by 20%, while parts and service revenues were stable.  Mining contracting operations saw a 5% higher overburden removal volume and a 7% higher coal production.  Coal mining subsidiaries achieved 11% higher coal sales, including 674,000 tonnes of coking coal sales.  Agincourt Resources reported gold sales of 194,000 oz. General contractor Acset Indonusa reported a US$28 million net loss, compared to a net income of US$5 million in the equivalent period last year, due to increased project and funding costs of several ongoing contracts.

 

Net income from Astra's Agribusiness division fell by 94% to US$2 million, mainly due to lower crude palm oil prices which offset higher crude palm oil and derivatives sales.  Average crude palm oil prices fell by 18% in the first half of the year compared to equivalent period in 2018.  Crude palm oil and derivatives sales increased by 19% to 1.2 million tonnes.

 

Net income from Astra's Infrastructure & Logistics division increased from a small profit in the first half of 2018 to US$6 million, due to improved earnings from operational toll roads with increased traffic volume.  Serasi Autoraya's net income decreased by 20% to US$6 million, due to a fall in the number of vehicles under leasing contract and lower used car sales.

 

Net income from Astra's Information Technology division fell by 35% to US$3 million, due to reduced revenue in IT solutions and office service businesses and higher operating costs.

 

Net income from Astra's Property division was 33% lower at US$2 million, mainly due to reduced development earnings from Anandamaya Residences following the completion of construction in 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Profit and Loss Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

Year ended 31st December

 

 

 

2019

 

 

 

2018

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

15,999

 

 

 

-

 

 

 

15,999

 

 

 

16,939

 

 

 

-

 

 

 

16,939

 

 

 

34,094

 

 

 

-

 

 

 

34,094

 

 

Net operating costs (note 3)

 

(14,281)

 

 

 

47

 

 

 

(14,234)

 

 

 

(15,137)

 

 

 

(234)

 

 

 

(15,371)

 

 

 

(30,312)

 

 

 

(808)

 

 

 

(31,120)

 

 

Change in fair value of investment properties

 

-

 

 

 

(65)

 

 

 

(65)

 

 

 

-

 

 

 

665

 

 

 

665

 

 

 

-

 

 

 

1,236

 

 

 

1,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,718

 

 

 

(18)

 

 

 

1,700

 

 

 

1,802

 

 

 

431

 

 

 

2,233

 

 

 

3,782

 

 

 

428

 

 

 

4,210

 

 

Net financing charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- financing charges

 

(376)

 

 

 

-

 

 

 

(376)

 

 

 

(283)

 

 

 

-

 

 

 

(283)

 

 

 

(627)

 

 

 

-

 

 

 

(627)

 

 

- financing income

 

104

 

 

 

-

 

 

 

104

 

 

 

79

 

 

 

-

 

 

 

79

 

 

 

172

 

 

 

-

 

 

 

172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(272)

 

 

 

-

 

 

 

(272)

 

 

 

(204)

 

 

 

-

 

 

 

(204)

 

 

 

(455)

 

 

 

-

 

 

 

(455)

 

 

Share of results of Jardine Matheson

(note 4)

 

91

 

 

 

880

 

 

 

971

 

 

 

108

 

 

 

4

 

 

 

112

 

 

 

225

 

 

 

(17)

 

 

 

208

 

 

Share of results of associates and joint ventures (note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- before change in fair value of investment properties

 

502

 

 

 

2

 

 

 

504

 

 

 

436

 

 

 

1

 

 

 

437

 

 

 

1,063

 

 

 

1

 

 

 

1,064

 

 

- change in fair value of investment properties

 

-

 

 

 

(10)

 

 

 

(10)

 

 

 

-

 

 

 

(1)

 

 

 

(1)

 

 

 

-

 

 

 

189

 

 

 

189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

502

 

 

 

(8)

 

 

 

494

 

 

 

436

 

 

 

-

 

 

 

436

 

 

 

1,063

 

 

 

190

 

 

 

1,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

2,039

 

 

 

854

 

 

 

2,893

 

 

 

2,142

 

 

 

435

 

 

 

2,577

 

 

 

4,615

 

 

 

601

 

 

 

5,216

 

 

Tax (note 6)

 

(378)

 

 

 

(2)

 

 

 

(380)

 

 

 

(411)

 

 

 

(2)

 

 

 

(413)

 

 

 

(917)

 

 

 

11

 

 

 

(906)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

1,661

 

 

 

852

 

 

 

2,513

 

 

 

1,731

 

 

 

433

 

 

 

2,164

 

 

 

3,698

 

 

 

612

 

 

 

4,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company (notes 7 & 9)

 

779

 

 

 

878

 

 

 

1,657

 

 

 

789

 

 

 

156

 

 

 

945

 

 

 

1,715

 

 

 

95

 

 

 

1,810

 

 

Non-controlling interests

 

882

 

 

 

(26)

 

 

 

856

 

 

 

942

 

 

 

277

 

 

 

1,219

 

 

 

1,983

 

 

 

517

 

 

 

2,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,661

 

 

 

852

 

 

 

2,513

 

 

 

1,731

 

 

 

433

 

 

 

2,164

 

 

 

3,698

 

 

 

612

 

 

 

4,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic

 

1.38

 

 

 

 

 

 

 

2.93

 

 

 

1.38

 

 

 

 

 

 

 

1.66

 

 

 

3.01

 

 

 

 

 

 

 

3.18

 

 

- diluted

 

1.38

 

 

 

 

 

 

 

2.93

 

 

 

1.38

 

 

 

 

 

 

 

1.66

 

 

 

3.01

 

 

 

 

 

 

 

3.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

Year ended

31st

December

 

 

 

 

 

 

2019

US$m

 

 

 

 

 

 

2018

US$m

restated

 

 

 

 

 

2018

US$m

restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

2,513

 

 

 

 

 

2,164

 

 

 

 

 

4,310

 

 

 

Other comprehensive income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

 

(1)

 

 

 

 

 

(1)

 

 

 

 

 

(4)

 

 

 

Net revaluation surplus before transfer to investment properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- right-of-use assets

 

 

2,943

 

 

 

 

 

2

 

 

 

 

 

2

 

 

 

- tangible assets

 

 

-

 

 

 

 

 

1

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,942

 

 

 

 

 

2

 

 

 

 

 

(1)

 

 

 

Share of other comprehensive expense of Jardine Matheson

 

 

-

 

 

 

 

 

(2)

 

 

 

 

 

(19)

 

 

 

Share of other comprehensive income of associates and joint ventures

 

 

-

 

 

 

 

 

1

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,942

 

 

 

 

 

1

 

 

 

 

 

(15)

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

256

 

 

 

 

 

(713)

 

 

 

 

 

(775)

 

 

 

- transfer to profit and loss

 

 

-

 

 

 

 

 

1

 

 

 

 

 

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

256

 

 

 

 

 

(712)

 

 

 

 

 

(730)

 

 

 

Revaluation of other investments at fair value through other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

14

 

 

 

 

 

(20)

 

 

 

 

 

(22)

 

 

 

- transfer to profit and loss

 

 

-

 

 

 

 

 

(4)

 

 

 

 

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

(24)

 

 

 

 

 

(25)

 

 

 

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/gain arising during the period

 

 

(52)

 

 

 

 

 

38

 

 

 

 

 

31

 

 

 

- transfer to profit and loss

 

 

(4)

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(56)

 

 

 

 

 

38

 

 

 

 

 

31

 

 

 

Tax relating to items that may be reclassified

 

 

18

 

 

 

 

 

(14)

 

 

 

 

 

(13)

 

 

 

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

 

 

67

 

 

 

 

 

(25)

 

 

 

 

 

(48)

 

 

 

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

 

 

143

 

 

 

 

 

(333)

 

 

 

 

 

(489)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

442

 

 

 

 

 

(1,070)

 

 

 

 

 

(1,274)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

3,384

 

 

 

 

 

(1,069)

 

 

 

 

 

(1,289)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

5,897

 

 

 

 

 

1,095

 

 

 

 

 

3,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

4,209

 

 

 

 

 

473

 

 

 

 

 

1,199

 

 

 

Non-controlling interests

 

 

1,688

 

 

 

 

 

622

 

 

 

 

 

1,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,897

 

 

 

 

 

1,095

 

 

 

 

 

3,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2019

US$m

 

 

 

 

2018

US$m

restated

 

 

 

 

2018

US$m restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

2,616

 

 

 

2,006

 

 

 

2,494

 

Tangible assets

 

6,727

 

 

 

5,780

 

 

 

6,547

 

Right-of-use assets

 

4,591

 

 

 

4,987

 

 

 

4,807

 

Investment properties

 

37,557

 

 

 

33,671

 

 

 

34,299

 

Bearer plants

 

499

 

 

 

475

 

 

 

487

 

Investment in Jardine Matheson

 

3,669

 

 

 

3,305

 

 

 

3,188

 

Associates and joint ventures

 

14,781

 

 

 

12,279

 

 

 

13,736

 

Other investments

 

2,752

 

 

 

2,826

 

 

 

2,543

 

Non-current debtors

 

3,134

 

 

 

3,019

 

 

 

3,047

 

Deferred tax assets

 

388

 

 

 

367

 

 

 

347

 

Pension assets

 

-

 

 

 

5

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

76,714

 

 

 

68,720

 

 

 

71,495

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

 

2,424

 

 

 

3,006

 

 

 

2,339

 

Stocks and work in progress

 

2,854

 

 

 

2,555

 

 

 

2,960

 

Current debtors

 

7,372

 

 

 

6,322

 

 

 

6,914

 

Current investments

 

37

 

 

 

22

 

 

 

50

 

Current tax assets

 

207

 

 

 

180

 

 

 

185

 

Bank balances and other liquid funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

4,552

 

 

 

4,667

 

 

 

4,403

 

- financial services companies

 

241

 

 

 

173

 

 

 

187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,793

 

 

 

4,840

 

 

 

4,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,687

 

 

 

16,925

 

 

 

17,038

 

Assets classified as held for sale

 

-

 

 

 

5

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

17,687

 

 

 

16,930

 

 

 

17,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

94,401

 

 

 

85,650

 

 

 

88,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

56

 

 

 

56

 

 

 

56

 

 

Share premium and capital reserves

 

941

 

 

 

1,015

 

 

 

1,025

 

 

Revenue and other reserves

 

36,394

 

 

 

31,562

 

 

 

32,256

 

 

Own shares held

 

(2,278)

 

 

 

(2,080)

 

 

 

(2,139)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' funds

 

35,113

 

 

 

30,553

 

 

 

31,198

 

 

Non-controlling interests

 

29,376

 

 

 

27,376

 

 

 

28,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

64,489

 

 

 

57,929

 

 

 

59,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

6,992

 

 

 

6,458

 

 

 

5,291

 

 

- financial services companies

 

1,803

 

 

 

1,652

 

 

 

1,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,795

 

 

 

8,110

 

 

 

6,946

 

 

Non-current lease liabilities

 

3,125

 

 

 

3,368

 

 

 

3,251

 

 

Deferred tax liabilities

 

698

 

 

 

487

 

 

 

728

 

 

Pension liabilities

 

327

 

 

 

296

 

 

 

304

 

 

Non-current creditors

 

349

 

 

 

233

 

 

 

339

 

 

Non-current provisions

 

272

 

 

 

257

 

 

 

286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

13,566

 

 

 

12,751

 

 

 

11,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current creditors

 

8,953

 

 

 

8,355

 

 

 

8,862

 

 

Current borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

4,205

 

 

 

3,466

 

 

 

5,083

 

 

- financial services companies

 

1,820

 

 

 

1,845

 

 

 

1,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,025

 

 

 

5,311

 

 

 

6,907

 

 

Current lease liabilities

 

824

 

 

 

753

 

 

 

772

 

 

Current tax liabilities

 

358

 

 

 

413

 

 

 

431

 

 

Current provisions

 

186

 

 

 

138

 

 

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

16,346

 

 

 

14,970

 

 

 

17,149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

29,912

 

 

 

27,721

 

 

 

29,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

94,401

 

 

 

85,650

 

 

 

88,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                               

 

 

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 2019 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as previously reported

56

 

816

 

209

 

34,291

 

304

 

264

 

(13)

 

(2,267)

 

(2,139)

 

31,521

 

28,428

 

59,949

- change in accounting policies (note 1)

-

 

-

 

-

 

(329)

 

-

 

-

 

-

 

6

 

-

 

(323)

 

(96)

 

(419)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as restated

56

 

816

 

209

 

33,962

 

304

 

264

 

(13)

 

(2,261)

 

(2,139)

 

31,198

 

28,332

 

59,530

Total comprehensive income

-

 

-

 

-

 

1,658

 

-

 

2,302

 

(10)

 

259

 

-

 

4,209

 

1,688

 

5,897

Dividends paid by the Company (note 10)

-

 

-

 

-

 

(136)

 

-

 

-

 

-

 

-

 

-

 

(136)

 

-

 

(136)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(654)

 

(654)

Employee share option schemes

-

 

-

 

2

 

-

 

-

 

-

 

-

 

-

 

-

 

2

 

-

 

2

Scrip issued in lieu of dividends

-

 

-

 

-

 

5

 

-

 

-

 

-

 

-

 

-

 

5

 

-

 

5

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(139)

 

(139)

 

-

 

(139)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

15

 

15

Change in interests in subsidiaries

-

 

-

 

-

 

(8)

 

-

 

-

 

-

 

-

 

-

 

(8)

 

-

 

(8)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(18)

 

-

 

-

 

-

 

-

 

-

 

(18)

 

(5)

 

(23)

Transfer

-

 

-

 

(86)

 

86

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2019

56

 

816

 

125

 

35,549

 

304

 

2,566

 

(23)

 

(2,002)

 

(2,278)

 

35,113

 

29,376

 

64,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2018 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as previously reported

56

 

816

 

195

 

32,635

 

304

 

264

 

(7)

 

(1,690)

 

(2,000)

 

30,573

 

27,722

 

58,295

- change in accounting policies (note 1)

-

 

-

 

-

 

(303)

 

-

 

-

 

-

 

-

 

-

 

(303)

 

(88)

 

(391)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as restated

56

 

816

 

195

 

32,332

 

304

 

264

 

(7)

 

(1,690)

 

(2,000)

 

30,270

 

27,634

 

57,904

Total comprehensive income

-

 

-

 

-

 

932

 

-

 

1

 

5

 

(465)

 

-

 

473

 

622

 

1,095

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

 

33,150

 

304

 

265

 

(2)

 

(2,155)

 

(2,080)

 

30,553

 

27,376

 

57,929

 

 

 

Year ended 31st December 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as previously reported

56

 

816

 

195

 

32,635

 

304

 

264

 

(7)

 

(1,690)

 

(2,000)

 

30,573

 

27,722

 

58,295

 

- change in accounting policies (note 1)

-

 

-

 

-

 

(303)

 

-

 

-

 

-

 

-

 

-

 

(303)

 

(88)

 

(391)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- as restated

56

 

816

 

195

 

32,332

 

304

 

264

 

(7)

 

(1,690)

 

(2,000)

 

30,270

 

27,634

 

57,904

 

Total comprehensive income

-

 

-

 

-

 

1,776

 

-

 

-

 

(6)

 

(571)

 

-

 

1,199

 

1,822

 

3,021

 

Dividends paid by the Company

-

 

-

 

-

 

(185)

 

-

 

-

 

-

 

-

 

-

 

(185)

 

-

 

(185)

 

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(844)

 

(844)

 

Unclaimed dividends forfeited

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

 

Employee share option schemes

-

 

-

 

19

 

-

 

-

 

-

 

-

 

-

 

-

 

19

 

-

 

19

 

Scrip issued in lieu of dividends

-

 

-

 

-

 

9

 

-

 

-

 

-

 

-

 

-

 

9

 

-

 

9

 

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(139)

 

(139)

 

-

 

(139)

 

Subsidiaries acquired

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

57

 

57

 

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

22

 

22

 

Change in interests in subsidiaries

-

 

-

 

-

 

18

 

-

 

-

 

-

 

-

 

-

 

18

 

(378)

 

(360)

 

Change in interests in associates and joint ventures

-

 

-

 

-

 

6

 

-

 

-

 

-

 

-

 

-

 

6

 

19

 

25

 

Transfer

-

 

-

 

(5)

 

5

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2018

56

 

816

 

209

 

33,962

 

304

 

264

 

(13)

 

(2,261)

 

(2,139)

 

31,198

 

28,332

 

59,530

 

                                                                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

Year ended 31st December

 

 

 

2019

US$m

 

 

 

 

 

2018

US$m restated

 

 

 

2018

US$m restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,700

 

 

 

2,233

 

 

 

4,210

 

Change in fair value of investment properties

 

65

 

 

 

(665)

 

 

 

(1,236)

 

Depreciation and amortisation

 

1,112

 

 

 

967

 

 

 

1,983

 

Other non-cash items

 

48

 

 

 

384

 

 

 

1,097

 

Increase in working capital

 

(697)

 

 

 

(885)

 

 

 

(844)

 

Interest received

 

84

 

 

 

74

 

 

 

156

 

Interest and other financing charges paid

 

(371)

 

 

 

(281)

 

 

 

(615)

 

Tax paid

 

(525)

 

 

 

(374)

 

 

 

(843)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,416

 

 

 

1,453

 

 

 

3,908

 

Dividends from Jardine Matheson

 

546

 

 

 

-

 

 

 

179

 

Dividends from associates and joint ventures

 

346

 

 

 

342

 

 

 

784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

2,308

 

 

 

1,795

 

 

 

4,871

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of subsidiaries (note 12(a))

 

-

 

 

 

(84)

 

 

 

(1,286)

 

Purchase of shares in Jardine Matheson

 

-

 

 

 

(99)

 

 

 

(99)

 

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

 

(639)

 

 

 

(514)

 

 

 

(1,191)

 

Purchase of other investments (note 12(c))

 

(279)

 

 

 

(617)

 

 

 

(706)

 

Purchase of intangible assets

 

(123)

 

 

 

(47)

 

 

 

(113)

 

Purchase of tangible assets

 

(615)

 

 

 

(601)

 

 

 

(1,236)

 

Additions to right-of-use assets

 

(51)

 

 

 

(4)

 

 

 

(8)

 

Additions to investment properties

 

(72)

 

 

 

(99)

 

 

 

(163)

 

Additions to bearer plants

 

(21)

 

 

 

(20)

 

 

 

(45)

 

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

 

(410)

 

 

 

(395)

 

 

 

(990)

 

Advance and repayment from associates and joint ventures (note12(e))

 

321

 

 

 

534

 

 

 

952

 

Sale of subsidiaries

 

-

 

 

 

4

 

 

 

-

 

Sale of associates and joint ventures

 

3

 

 

 

-

 

 

 

-

 

Sale of other investments (note 12(f))

 

205

 

 

 

136

 

 

 

235

 

Sale of tangible assets

 

8

 

 

 

10

 

 

 

59

 

Sale of right-of-use assets

 

1

 

 

 

12

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

(1,672)

 

 

 

(1,784)

 

 

 

(4,579)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital contribution from non-controlling interests

 

15

 

 

 

21

 

 

 

22

 

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

 

(8)

 

 

 

(308)

 

 

 

(360)

 

Drawdown of borrowings

 

4,508

 

 

 

3,762

 

 

 

7,235

 

Repayment of borrowings

 

(3,627)

 

 

 

(2,553)

 

 

 

(5,691)

 

Principal elements of lease payments

 

(443)

 

 

 

(434)

 

 

 

(876)

 

Dividends paid by the Company

 

(261)

 

 

 

(244)

 

 

 

(351)

 

Dividends paid to non-controlling interests

 

(654)

 

 

 

(607)

 

 

 

(844)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

(470)

 

 

 

(363)

 

 

 

(865)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

166

 

 

 

(352)

 

 

 

(573)

 

Cash and cash equivalents at beginning of period

 

4,555

 

 

 

5,298

 

 

 

5,298

 

Effect of exchange rate changes

 

56

 

 

 

(144)

 

 

 

(170)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

4,777

 

 

 

4,802

 

 

 

4,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2018 annual financial statements except for the adoption of IFRS 16 'Leases' from 1st January 2019 as set out below.

 

The other amendments or interpretation, which are effective in 2019 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 or amendments that have been issued but not yet effective.

 

IFRS 16 'Leases'

 

The standard replaces IAS 17 'Leases' and related interpretations and introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees.  The distinction between operating and finance leases is removed for lessee accounting, and is replaced by a model where a lease liability and a corresponding right-of-use asset have to be recognised on the balance sheet for almost all leases by the lessees.  The Group's recognised right-of-use assets primarily relate to property leases, which are entered into for use as retail stores and offices.  There are also right-of-use assets relate to equipment and motor vehicles.  Prior to 2019, payments made under operating leases were charged to profit and loss on a straight-line basis over the period of the lease.  From 1st January 2019, each lease payment is allocated between settlement of the lease liability and finance cost.  The finance cost is charged to profit and loss over the lease period.  The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

 

In addition, leasehold land which represents payments to third parties to acquire interests in property, previously included in intangible assets and tangible assets, is now presented under right-of-use assets.  Leasehold land is amortised over the useful life of the lease, which includes the renewal period if the lease is likely to be renewed by the Group without significant cost.

 

The accounting for lessors does not change significantly.

 

Changes to accounting policies on adoption of IFRS 16 have been applied retrospectively, and the comparative financial statements have been restated.

 

The effects of adopting IFRS 16 were as follows:

 

(a)     On the consolidated profit and loss account for the six months ended 30th June 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase/(decrease)

 

 

 

 

 

 

 

 

 

in profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating costs

 

 

 

 

 

 

 

32

 

 

 

Net financing charges

 

 

 

 

 

 

 

(74)

 

 

 

Share of results of Jardine Matheson

 

 

 

 

 

 

 

(1)

 

 

 

Share of results of associates and joint ventures

 

 

 

 

 

 

 

(10)

 

 

 

Tax

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

 

 

 

 

 

 

(50)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company*

 

 

 

 

 

 

 

(39)

 

 

 

Non-controlling interests

 

 

 

 

 

 

 

(11)

 

 

 

 

 

 

 

 

 

 

 

(50)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Further analysed as:

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders

 

 

 

 

 

 

 

(39)

 

 

 

Non-trading items

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

 

 

 

 

 

 

(39)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic underlying earnings per share (US$)

 

 

 

 

 

 

 

(0.07)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted underlying earnings per share (US$)

 

 

 

 

 

 

 

(0.07)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (US$)

 

 

 

 

 

 

 

(0.07)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (US$)

 

 

 

 

 

 

 

(0.07)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b)     On the consolidated statement of comprehensive income for the six months ended 30th June 2018:

 

 

 

 

Increase/(decrease)

in total

comprehensive income

 

 

 

 

 

 

 

 

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

(50)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income for the period, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

- net gain arising during the period

 

 

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

 

(43)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

 

 

(33)

 

 

 

 

Non-controlling interests

 

 

 

 

(10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43)

 

 

 

                       

 

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

 

 

Increase/(decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

US$m

 

 

 

2018

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Intangible assets

 

(711)

 

 

 

(751)

 

 

Tangible assets

 

(444)

 

 

 

(428)

 

 

Right-of-use assets

 

4,807

 

 

 

4,952

 

 

Investment in Jardine Matheson

 

(31)

 

 

 

(29)

 

 

Associates and joint ventures

 

(37)

 

 

 

(20)

 

 

Non-current debtors

 

(13)

 

 

 

(51)

 

 

Deferred tax assets

 

(2)

 

 

 

-

 

 

Current debtors

 

(79)

 

 

 

(33)

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

3,490

 

 

 

3,640

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Revenue and other reserves

 

(323)

 

 

 

(303)

 

 

Non-controlling interests

 

(96)

 

 

 

(88)

 

 

 

 

 

 

 

 

 

 

 

 

 

(419)

 

 

 

(391)

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Long-term borrowings

 

(24)

 

 

 

(1)

 

 

Non-current lease liabilities

 

3,251

 

 

 

3,267

 

 

Deferred tax liabilities

 

(33)

 

 

 

(26)

 

 

Non-current provisions

 

14

 

 

 

97

 

 

 

 

 

 

 

 

 

 

 

 

 

3,208

 

 

 

3,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Current creditors

 

(37)

 

 

 

(43)

 

 

Current borrowings

 

(14)

 

 

 

(3)

 

 

Current lease liabilities

 

772

 

 

 

727

 

 

Current provisions

 

(20)

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

701

 

 

 

694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

3,490

 

 

 

3,640

 

                   

 

(d)     On the consolidated cash flow statement for the six months ended 30th June 2018:

 

 

Inflows/(outflows)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

Operating profit

 

 

 

 

 

32

 

 

Depreciation and amortisation

 

 

 

 

 

470

 

 

Decrease in working capital

 

 

 

 

 

4

 

 

Interest and other financing charges paid

 

 

 

 

 

(74)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

432

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

 

 

 

 

4

 

 

Additions to right-of-use assets

 

 

 

 

 

(4)

 

 

Sale of intangible assets

 

 

 

 

 

(12)

 

 

Sale of right-of-use assets

 

 

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Repayment of borrowings

 

 

 

 

 

2

 

 

Principal elements of lease payments

 

 

 

 

 

(434)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(432)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

 

 

 

-

 

                   

 

 

(e)     Change in principal accounting policies on adoption of IFRS 16

 

Right-of-use assets

 

Right-of-use assets are recognised at the commencement date of the lease, that is the date the underlying assets are available for use.  Right-of-use assets are measured at cost, less any accumulated depreciation and impairment, and adjusted for any remeasurement of lease liabilities.  The cost of the right-of-use assets includes amount of the initial measurement of lease liabilities recognised, lease payments made at or before the commencement date less any lease incentives received, initial direct costs incurred, and restoration costs.

 

Right-of-use assets are depreciated using the straight-line method over the shorter of their estimated useful lives and the lease terms.

 

When right-of-use assets meet the definition of investment properties, they are presented in investment properties, and are initially measured at cost and subsequently measured at fair value, in accordance with the Group's accounting policy.

 

Payments associated with short-term lease and leases of low-value assets (i.e. US$5,000 or less) are recognised on a straight-line basis as an expense in profit and loss.  Short-term leases are leases with a lease term of 12 months or less.  Low value assets comprised IT equipment and small items of office furniture.

 

Lease liabilities

 

Lease liabilities are recognised at the commencement of the lease and are measured at the present value of lease payments to be made over the lease term.  Lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.  The lease payments also include the exercise price of a purchase option reasonably certain to be exercised and payments of penalties for terminating a lease, if the lease term reflects the Group exercising that option.  The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs.

 

In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.  After the commencement date, the amount of lease liabilities is increased by the interest costs on the lease liabilities and decreased by lease payments made.  The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

 

Interest is included as finance cost and charged to the profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liabilities for each period.

 

Lease liabilities are classified as non-current liabilities unless payments are within 12 months from the balance sheet date.

 

(f)      Critical accounting estimates and judgements

 

Determination of lease term of contracts with renewal options

 

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any period covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

 

The Group has the option, under some of its leases to lease the assets for additional terms.  The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew.  That is, the Group considers all relevant factors that create an economic incentive for it to exercise the renewal.  After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew.

 

The assessment of whether the Group is reasonably certain to exercise the options impacts the lease terms, which significantly affects the amount of lease liabilities and right-of-use assets recognised.

 

Determination of discount rates

 

The Group uses the incremental borrowing rate at the lease commencement date as the discount rate to measure a lease liability if the interest rate implicit in the lease cannot be readily determinable.  The Group applies the incremental borrowing rate with reference to the rate of interest that the Group would have to pay to borrow, over a similar term as that of the lease, the funds necessary to obtain an asset of a similar value to the right-of-use asset in the country where it is located.

 

2.    Revenue

 

 

 

 

 

 

 

 

 

Jardine

 

 

 

 

 

 

 

 

Hongkong

 

Dairy

 

Mandarin

 

Cycle &

 

 

 

Intersegment

 

 

 

 

Land

 

Farm

 

Oriental

 

Carriage

 

Astra

 

transactions

 

Group

 

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product and service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

804

 

-

 

-

 

-

 

21

 

(2)

 

823

Motor vehicles

 

-

 

-

 

-

 

966

 

3,503

 

-

 

4,469

Retail and restaurants

 

-

 

5,761

 

-

 

-

 

-

 

-

 

5,761

Financial services

 

-

 

-

 

-

 

-

 

710

 

-

 

710

  Engineering, heavy equipment, mining and construction

 

-

 

-

 

-

 

-

 

3,026

 

-

 

3,026

Hotels

 

-

 

-

 

279

 

-

 

-

 

-

 

279

Other

 

-

 

-

 

-

 

-

 

931

 

-

 

931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

804

 

5,761

 

279

 

966

 

8,191

(2)

15,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Revenue from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognised at a point in time

 

34

 

5,761

 

104

 

934

 

7,190

 

-

 

14,023

Recognised over time

 

185

 

-

 

165

 

32

 

189

 

-

 

571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

219

 

5,761

 

269

 

966

 

7,379

 

-

 

14,594

Revenue from other sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Rental income from investment        properties

 

509

 

-

 

-

 

-

 

3

 

(2)

 

510

   Revenue from financial services

   companies

 

-

 

-

 

-

 

-

 

710

 

-

 

710

 Other

 

76

 

-

 

10

 

-

 

99

 

-

 

185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

585

 

-

 

10

 

-

 

812

 

(2)

 

1,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

804

 

5,761

 

279

 

966

 

8,191

(2)

15,999

 

Six months ended 30th June 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product and service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

1,516

 

-

 

-

 

-

 

1

 

(2)

 

1,515

Motor vehicles

 

-

 

-

 

-

 

1,041

 

3,653

 

-

 

4,694

Retail and restaurants

 

-

 

5,929

 

-

 

-

 

-

 

-

 

5,929

Financial services

 

-

 

-

 

-

 

-

 

699

 

-

 

699

  Engineering, heavy equipment, mining and construction

 

-

 

-

 

-

 

-

 

2,815

 

-

 

2,815

Hotels

 

-

 

-

 

308

 

-

 

-

 

(1)

 

307

Other

 

-

 

-

 

-

 

-

 

980

 

-

 

980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,516

 

5,929

 

308

 

1,041

 

8,148

 

(3)

 

16,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Revenue from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognised at a point in time

 

784

 

5,929

 

109

 

1,015

 

7,147

 

-

 

14,984

Recognised over time

 

172

 

-

 

188

 

26

 

195

 

(1)

 

580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

956

 

5,929

 

297

 

1,041

 

7,342

 

(1)

 

15,564

Revenue from other sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Rental income from investment properties

 

484

 

-

 

-

 

-

 

1

 

(2)

 

483

  Revenue from financial services companies

 

-

 

-

 

-

 

-

 

699

 

-

 

699

Other

 

76

 

-

 

11

 

-

 

106

 

-

 

193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

560

 

-

 

11

 

-

 

806

 

(2)

 

1,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,516

 

5,929

 

308

 

1,041

 

8,148

 

(3)

 

16,939

 

No interest income calculated using effective interest method had been included in revenue from contracts with customers for the six months ended 30th June 2019 and 2018.

 

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

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

US$m

 

 

 

2018

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Matheson

 

14,836

 

 

 

10,313

 

 

Hongkong Land

 

1,771

 

 

 

2,126

 

 

Dairy Farm

 

13,782

 

 

 

12,215

 

 

Mandarin Oriental

 

449

 

 

 

492

 

 

Jardine Cycle & Carriage

 

3,161

 

 

 

3,545

 

 

Astra

 

16,421

 

 

 

15,797

 

 

Intersegment transactions

 

(146)

 

 

 

(140)

 

 

 

 

 

 

 

 

 

 

 

 

 

50,274

 

 

 

44,348

 

 

 

3.    Net Operating Costs

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

US$m

 

 

 

2018

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(11,740)

 

 

 

(12,615)

 

 

Other operating income

 

389

 

 

 

303

 

 

Selling and distribution costs

 

(1,795)

 

 

 

(1,841)

 

 

Administration expenses

 

(1,041)

 

 

 

(949)

 

 

Other operating expenses

 

(47)

 

 

 

(269)

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,234)

 

 

 

(15,371)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of other investments

 

76

 

 

 

(242)

 

 

Closure of a hotel

 

(32)

 

 

 

-

 

 

Sale of businesses

 

-

 

 

 

9

 

 

Other

 

3

 

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

 

 

(234)

 

 

4.    Share of Results of Jardine Matheson

 

 

Six months ended 30th June