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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hong Kong Land Holdings Ld | LSE:HKLB | London | Ordinary Share | BMG4587L1090 | ORD US$0.10(BERMUDA REG) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 7.41 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Lessors Of Real Property,nec | 1.84B | -582.3M | -0.2629 | -28.19 | 16.41B |
From Apr 2021 to Apr 2024
TIDMHKLD TIDMJAR
RNS Number : 9018G
Hongkong Land Hldgs Ltd
29 July 2021
Announcement
29th July 2021
The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.
HONGKONG LAND HOLDINGS LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30TH JUNE 2021
Highlights
-- Underlying profit of US$394 million, up 12% -- Continued resilient performance from Investment Properties -- Net asset value per share down 4% on lower capital values -- Five new development projects secured
" While higher second-half underlying profits are expected from the Group's Development Properties business due to more sales completions on the Chinese mainland, overall conditions are expected to be similar to those of the first-half."
Ben Keswick
Chairman
Results
Hot Features
Premium
(unaudited)
Six months ended 30th
June
2021 2020 Change
US$m US$m %
Underlying profit attributable to
shareholders(#) 394 353 +12
Loss attributable to shareholders (865) (1,828) +53
Shareholders' funds 34,414 35,709* -4
Net debt 4,262 4,568* +7
USc USc %
Underlying earnings per share(#) 16.90 15.12 +12
Loss per share (37.06) (78.31) +53
Interim dividend per share 6.00 6.00 -
US$ US$ %
Net asset value per share 14.75 15.30 * -4
# The Group uses 'underlying profit attributable to shareholders'
in its internal financial reporting to distinguish between
ongoing business performance and non-trading items, as more
fully described in note 7 to the condensed financial statements.
Management considers this to be a key measure which provides
additional information to enhance understanding of the Group's
underlying business performance.
* At 31st December 2020
The interim dividend of USc6.00 per share will be payable on 13th October 2021 to shareholders on the register of members at the close of business on 20th August 2021.
HONGKONG LAND HOLDINGS LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30TH JUNE 2021
OVERVIEW
The Group's results benefited from higher Development Properties profits due to the timing of sales completions, while contributions from Investment Properties remained resilient, despite negative rental reversions in Hong Kong.
PERFORMANCE
Underlying profit attributable to shareholders during the first half was US$394 million, compared with US$353 million in the equivalent period in 2020.
There was a loss attributable to shareholders for the first half of US$865 million, which includes net non-cash losses of US$1,259 million arising from the revaluation of the Group's investment properties due to lower open market rents. This compares with a loss of US$1,828 million for the first half of 2020, which included net losses of US$2,180 million arising from investment property revaluations.
The net asset value per share at 30th June 2021 was US$14.75, compared to US$15.30 at 31st December 2020.
The Directors have declared an unchanged interim dividend of USc6.00 per share.
GROUP REVIEW
Investment Properties
The Group's office portfolio in Hong Kong continued to perform relatively well amidst the ongoing market downturn. Vacancy was 6.4% at the end of June 2021, compared to 6.3% at the end of 2020, and on a committed basis it was 5.5%, compared to 5.9% at the end of 2020. Office rental reversions were negative, with average office rents of HK$118 per sq. ft in the first half of 2021. This compares to an average rent of HK$121 per sq. ft and HK$119 per sq. ft in the first and second halves of 2020, respectively. New office leasing activity saw a modest increase in the period as a result of improved sentiment and a narrowing rental gap between Central and other parts of the city.
Trading at the Group's Central retail portfolio benefited from a modest recovery in luxury retail market sentiment in the period. Vacancy was 0.9% at the end of June 2021, compared to 0.3% at the end of 2020. On a committed basis, vacancy was 0.8%, compared to 0.3% at the end of 2020. Average retail rents were HK$180 per sq. ft in the first half of 2021, compared with HK$151 per sq. ft and HK$177 per sq. ft in the first and second halves of 2020, respectively. Excluding temporary rent relief, average retail rents in the first half of 2021 were HK$203 per sq. ft. Base retail rental reversions were negative in the period and the Group continued to provide temporary rent relief on a case-by-case basis.
In Singapore, vacancy across the Group's office portfolio was 7.5% at the end of June 2021, compared with 2.1% at the end of 2020. On a committed basis, vacancy was 2.1%, unchanged from the end of 2020. Average office rents increased to S$10.2 per sq. ft in the first half of 2021, compared with S$9.9 per sq. ft in both the first and second halves of 2020. Rental reversions remained positive in the first half of the year.
In Beijing, trading at WF CENTRAL remained robust due to the strength of luxury retail market sentiment on the Chinese mainland, with tenant sales in the period exceeding those achieved in the equivalent periods in 2019 and 2020.
In Shanghai, construction has commenced at the Group's prime mixed-use project on the West Bund and remains on schedule, with completion in multiple phases to 2027.
In Bangkok, the planning of the Group's 49%-owned prime retail and Grade A office development in the central business district continues. The development has been delayed by COVID-19 related restrictions, with completion expected in 2027 .
Development Properties
On the Chinese mainland, higher sales completions in the period resulted in an increased profit contribution, while the Group's attributable interest in contracted sales in the first half of 2021 was US$1,360 million, compared to US$591 million and US$1,544 million in the first and second halves of 2020, respectively. Market sentiment in the Group's core markets remains stable. At 30th June 2021, the Group had US$3,367 million in sold but unrecognised contracted sales, compared with US$2,584 million at the end of 2020. Both sales completions and contracted sales are in line with expectations, with sales completions expected to strengthen in the second half of the year.
Although competition to secure sites for development on the Chinese mainland remains fierce, the Group has secured three predominantly residential projects during the period: a site located in the Lishui District of Nanjing with a developable area of 93,000 sq. m. and two further sites located in the Qiaokou and Guanggu Districts of Wuhan with an aggregate attributable developable area of 245,000 sq. m.
The profit contribution from the Singapore business in the first half of 2021 was higher than in the first half of 2020, which was impacted by pandemic-related disruptions. The 309-unit Margaret Ville is fully pre-sold, whilst pre-sales at the 1,404-unit Parc Esta and the 638-unit Leedon Green projects are performing within expectations. The Group's attributable interest in contracted sales was US$172 million in the first half of 2021, compared to US$301 million and US$331 million in the first and second halves of 2020, respectively.
During the period, the Group secured two joint venture projects in Singapore, including an executive condominium site in the Tengah area and a predominantly residential site at Northumberland Road. The Group's effective interest in these projects equates to a developable area of 529,000 sq. ft.
In the rest of Southeast Asia, market sentiment remains weak in light of the ongoing impact of COVID-19 and related restrictions.
Financing
The Group's financial position remains strong. Net debt declined to US$4.3 billion at 30th June 2021 from US$4.6 billion at the end of 2020. Net gearing was 12% compared with 13% at the end of 2020.
As at 30th June 2021, the Group had committed liquidity of US$4.4 billion, compared to US$4.3 billion at the end of 2020, with an average tenor of debt of 6.4 years compared to 6.6 years at the end of 2020.
PEOPLE
Our employees continue to show exemplary commitment and resilience in safeguarding the wellbeing of our customers, and on behalf of the Board, I would like to take this opportunity to thank them for their ongoing dedication and hard work during these difficult times.
James Watkins retired from the Board following today's Board meeting. On 20th May 2021, it was announced that Simon Dixon would step down from the Board on 31st August 2021. The Board would like to record its gratitude to both of them for their significant contribution to the Group. As announced on 20th May 2021, Craig Beattie will be appointed as a Director and Chief Financial Officer of the Company with effect from 1st September 2021.
OUTLOOK
While higher second-half underlying profits are expected from the Group's Development Properties business due to more sales completions on the Chinese mainland, overall conditions are expected to be similar to those of the first-half.
Ben Keswick
Chairman
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
(unaudited)
Six months ended 30th June Year ended 31st December
2021 2020 2020
Underlying Non- Underlying Non- Underlying Non-
business trading business trading business trading
performance items Total performance items Total performance items Total
US$m US$m US$m US$m US$m US$m US$m US$m US$m
Revenue (note 2) 885.8 - 885.8 820.2 - 820.2 2,094.2 - 2,094.2
Net operating costs (note
3) (476.4) 0.5 (475.9) (389.4) - (389.4) (1,135.2) 1.0 (1,134.2)
Change in fair value of
investment properties - (1,248.8) (1,248.8) - (2,062.9) (2,062.9) - (3,443.4) (3,443.4)
Operating profit/(loss)
(note 4) 409.4 (1,248.3) (838.9) 430.8 (2,062.9) (1,632.1) 959.0 (3,442.4) (2,483.4)
Net financing charges
* financing charges (106.9) - (106.9) (99.5) - (99.5) (194.9) - (194.9)
* financing income 33.8 - 33.8 36.3 - 36.3 79.0 - 79.0
(73.1) - (73.1) (63.2) - (63.2) (115.9) - (115.9)
Share of results of
associates
and
joint ventures (note 5) 120.1 (4.4) 115.7 45.2 (134.5) (89.3) 267.5 (175.4) 92.1
----------- --------- --------- ----------- --------- --------- ----------- --------- ---------
Profit/(loss) before tax 456.4 (1,252.7) (796.3) 412.8 (2,197.4) (1,784.6) 1,110.6 (3,617.8) (2,507.2)
Tax (note 6) (62.1) (4.8) (66.9) (61.7) 12.3 (49.4) (149.5) 4.9 (144.6)
----------- --------- --------- ----------- --------- --------- ----------- --------- ---------
Profit/(loss) after tax 394.3 (1,257.5) (863.2) 351.1 (2,185.1) (1,834.0) 961.1 (3,612.9) (2,651.8)
----------- --------- --------- ----------- --------- --------- ----------- --------- ---------
Attributable to:
Shareholders of the
Company
(note 7) 394.4 (1,259.3) (864.9) 352.8 (2,180.4) (1,827.6) 963.3 (3,610.7) (2,647.4)
Non-controlling interests (0.1) 1.8 1.7 (1.7) (4.7) (6.4) (2.2) (2.2) (4.4)
----------- --------- --------- ----------- --------- --------- ----------- --------- ---------
394.3 (1,257.5) (863.2) 351.1 (2,185.1) (1,834.0) 961.1 (3,612.9) (2,651.8)
----------- --------- --------- ----------- --------- --------- ----------- --------- ---------
USc USc USc USc USc USc
Earnings/(loss) per share
(note 8) 16.90 (37.06) 15.12 (78.31) 41.27 (113.43)
Hongkong Land Holdings Limited
Consolidated Statement of Comprehensive Income
Year
(unaudited) ended
Six months ended 31st
30th June December
2021 2020 2020
US$m US$m US$m
(1, 8
Loss for the period (863.2) 34.0) (2,651.8)
Other comprehensive ( expense)/income
Items that will not be reclassified
to
profit or loss:
Remeasurements of defined benefit
plans - - 1.7
Tax on items that will not
be reclassified - - (0.3)
- - 1.4
Items that may be reclassified
subsequently to profit or loss:
------- ----------- ---------
Net exchange translation differences
- net (loss)/gain arising during
the period (55.9) 42.4 400.9
Cash flow hedges
* net (loss)/gain arising during the period (7.5) 3.7 (20.8)
- transfer to profit and loss (0.2) (0.8) (0.4)
(7.7) 2.9 (21.2)
Tax relating to items that
may be
reclassified 1.3 (0.5) 3.5
Share of other comprehensive
income/(expense) of associates
and
joint ventures 5.8 (127.4) 242.4
(56.5) (82.6) 625.6
Other comprehensive (expense)/income
for the period, net of tax (56.5) (82.6) 627.0
------- ----------- ---------
Total comprehensive expense
for the
period (919.7) (1,916.6) (2,024.8)
------- ----------- ---------
Attributable to:
Shareholders of the Company (922.2) (1,908.8) (2,025.1)
Non-controlling interests 2.5 (7.8) 0.3
------- ----------- ---------
(919.7) (1,916.6) (2,024.8)
------------------------------------------------ ------- ----------- ---------
Hongkong Land Holdings Limited
Consolidated Balance Sheet
(unaudited) At 31st
At 30th June December
2021 2020 2020
US$m US$m US$m
Net operating assets
Fixed assets 126.0 121.9 125.2
Right-of-use assets 10.2 11.2 12.4
Investment properties (note 10) 28,814.7 35,835.7 30,083.3
Associates and joint ventures
(note 11) 8,990.6 6,839.9 8,921.2
Non-current debtors 29.9 60.9 42.0
Deferred tax assets 42.0 16.0 35.5
Pension assets 0.6 0.1 0.7
Non-current assets 38,014.0 42,885.7 39,220.3
Properties for sale 2,304.3 1,975.9 1,948.8
Current debtors 995.7 847.9 1,081.7
Current tax assets 34.5 31.7 14.4
Bank balances 2,352.9 927.6 1,996.6
--------- --------- ---------
Current assets 5,687.4 3,783.1 5,041.5
--------- --------- ---------
(3,7 40
Current creditors (2,241.8) . 9 ) (1,572.0)
Current borrowings (note 12) (906.5) (362.8) (689.5)
Current tax liabilities (158.5) (158.1) (153.0)
--------- --------- ---------
Current liabilities (3,306.8) (4,261.8) (2,414.5)
--------- --------- ---------
Net current assets/( liabilities) 2,380.6 (478.7) 2,627.0
Long-term borrowings (note 12) (5,708.7) (6,192.9) (5,875.4)
Deferred tax liabilities (204.0) (202.1) (195.8)
Pension liabilities (1.8) (2.2) (1.3)
Non-current creditors (35.6) (23.5) (36.3)
--------- --------- ---------
34,444.5 35,986.3 35,738.5
--------- --------- ---------
Total equity
Share capital 233.4 233.4 233.4
Share premium 257.3 257.3 257.3
Revenue and other reserves 33,922.8 35,473.9 35,218.4
--------- --------- ---------
Shareholders' funds 34,413.5 35,964.6 35,709.1
Non-controlling interests 31.0 21.7 29.4
--------- --------- ---------
34,444.5 35,986.3 35,738.5
--------- --------- ---------
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Equity
Attributable to Attributable
shareholders to non-
Share Share Revenue Hedging Exchange of the controlling
capital premium reserves reserves reserves Company interests Total equity
US$m US$m US$m US$m US$m US$m US$m US$m
Six months ended
30th June 2021
(unaudited)
At 1st January
2021 233.4 257.3 34,881.2 (21.6) 358.8 35,709.1 29.4 35,738.5
Total
comprehensive
(expense)/income - - (864.9) (0.5) (56.8) (922.2) 2.5 (919.7)
Dividends paid by
the Company (note
9) - - (373.4) - - (373.4) (0.9) (374.3)
------- ------- --------- -------- -------- ------------ ------------ ------------
At 30th June 2021 233.4 257.3 33,642.9 (22.1) 302.0 34,413.5 31.0 34,444.5
------- ------- --------- -------- -------- ------------ ------------ ------------
Six months ended
30th June 2020
(unaudited)
At 1st January
2020 233.4 257.3 38,039.8 8.3 (292.0) 38,246.8 43.0 38,289.8
Total
comprehensive
expense - - (1,827.6) (8.4) (72.8) (1,908.8) (7.8) (1,916.6)
Dividends paid by
the Company (note
9) - - (373.4) - - (373.4) (0.5) (373.9)
Disposal of a
subsidiary - - - - - - (13.0) (13.0)
------- ------- --------- -------- -------- ------------ ------------ ------------
At 30th June 2020 233.4 257.3 35,838.8 (0.1) (364.8) 35,964.6 21.7 35,986.3
------- ------- --------- -------- -------- ------------ ------------ ------------
Year ended 31st
December 2020
At 1st January
2020 233.4 257.3 38,039.8 8.3 (292.0) 38,246.8 43.0 38,289.8
Total
comprehensive
(expense)/income - - (2,646.0) (29.9) 650.8 (2,025.1) 0.3 (2,024.8)
Dividends paid by
the Company - - (513.4) - - (513.4) - (513.4)
Dividends paid to
non-controlling
shareholders - - - - - - (0.9) (0.9)
Unclaimed
dividends
forfeited - - 0.8 - - 0.8 - 0.8
Disposal of a
subsidiary - - - - - - (13.0) (13.0)
At 31st December
2020 233.4 257.3 34,881.2 (21.6) 358.8 35,709.1 29.4 35,738.5
------- ------- --------- -------- -------- ------------ ------------ ------------
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
(unaudited)
Six months ended Year ended
30th June 31st December
2021 2020 2020
US$m US$m US$m
Operating activities
Operating loss (838.9) (1,632.1) (2,483.4)
Depreciation and amortisation 7.7 7.4 15.3
Change in fair value of investment
properties 1,248.8 2,062.9 3,443.4
Gain on disposal of subsidiaries - (6.2) (7.2)
(Increase)/decrease in properties
for sale (353.7) (51.4) 164.2
Decrease in debtors 79.2 206.2 19.1
1 29 .
Increase in creditors 708.3 9 162.5
Interest received 20.1 20.1 42.3
Interest and other financing charges
paid (109.3) (113.4) (220.1)
Tax paid (79.3) (153.7) (267.9)
Dividends from associates and joint
ventures 39.6 36.3 112.9
Cash flows from operating activities 722.5 506.0 981.1
Investing activities
Major renovations expenditure (50.1) (59.1) (129.1)
Developments capital expenditure (1.5) (4,488.0) (4,499.1)
(Investments in and advances to)/repayment
from associates and joint ventures (34.5) 96.7 599.0
Advance received on conditional
disposal of
a subsidiary - 2,252.0 -
Proceeds received for disposal
of subsidiaries - 47.7 4,619.0
Deposits refunded for disposal
of subsidiaries - - (2,005.7)
(1,415
Cash flows from investing activities (86.1) (2,150.7) .9)
Financing activities
Drawdown of borrowings 593.8 2,481.7 3,726.9
Repayment of borrowings (505.1) (925.6) (2,268.8)
P rincipal elements of lease payments (1.4) (2.1) (4.6)
Dividends paid by the Company (369.4) (367.1) (509.6)
Dividends paid to non-controlling
shareholders (0.9) (0.1) (0.9)
Cash flows from financing activities (283.0) 1,186.8 943.0
Net cash inflow/(outflow) 353.4 (457.9) 508.2
Cash and cash equivalents at beginning
of period 1,990.4 1,418.0 1,418.0
Effect of exchange rate changes 5.7 (35.1) 64.2
Cash and cash equivalents at end
of period 2,349.5 925.0 1,990.4
------- --------- ------------
Hongkong Land Holdings Limited
Notes to Condensed Financial Statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and on a going concern basis. The condensed financial statements have not been audited or reviewed by the Group's auditors pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.
There are no changes to the accounting policies as described in the 2020 annual financial statements and the Group has not early adopted any standard or amendments that have been issued but not yet effective, except as mentioned below.
Interest rate benchmark reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (effective 1st January 2021).
The amendments provide practical expedient from certain requirements under the IFRSs as a result of the reform which affect the measurement of financial assets, financial liabilities and lease liabilities, and a number of reliefs for hedging relationships. The Group applied the amendments from 1st January 2021 and there is no significant impact on the Group's consolidated financial statements.
2. REVENUE
Six months ended 30th June
2021 2020
US$m US$m
Rental income 469.8 466.5
Service income 83.3 67.6
Sales of properties
----- -----
- recognised at a point in time 46.0 102.0
- recognised over time 286.7 184.1
332.7 286.1
----- -----
885.8 820.2
----- -----
By business
Investment Properties 541.9 530.3
Development Properties 343.9 289.9
----- -----
885.8 820.2
----- -----
3. NET OPERATING COSTS
Six months ended 30th June
2021 2020
US$m US$m
Cost of sales (383.9) (321.8)
Other income 4.5 6.7
Asset impairment reversal 0.5 -
Gain on disposal of a subsidiary - 6.2
Administrative expenses (97.0) (80.5)
-------
(475.9) (389.4)
------- -------
4. OPERATING PROFIT/( LOSS)
Six months ended 30th June
2021 2020
US$m US$m
By business
Investment Properties 431.7 432.2
Development Properties 21.2 35.9
Corporate (43.5) (37.3)
--------- ---------
Underlying business performance 409.4 430.8
Change in fair value of investment properties (1,248.8) (2,062.9)
Asset impairment reversal 0.5 -
--------- ---------
(838.9) (1,632.1)
--------- ---------
5. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Six months ended 30th June
2021 2020
US$m US$m
By business
Investment Properties
- operating profit 70.6 60.7
- net financing charges (16.3) (20.2)
- tax (8.7) (7.6)
- net profit 45.6 32.9
Development Properties
- operating profit 120.8 41.4
- net financing charges (4.3) (6.2)
- tax (40.4) (19.7)
- non-controlling interests (1.6) (3.2)
- net profit 74.5 12.3
------ -------
Underlying business performance 120.1 45.2
Change in fair value of investment properties
(net of deferred tax) (4.4) (134.5)
115.7 (89.3)
------ -------
6. TAX
Six months ended 30th June
2021 2020
US$m US$m
Tax charged to profit and loss is analysed
as follows:
Current tax (62.9) (40.8)
Deferred tax
- changes in fair value of investment
properties (4.8) 12.3
- other temporary differences 0.8 (20.9)
------ ------
(66.9) (49.4)
------ ------
Tax relating to components of other comprehensive
income or expense is analysed as follows:
Cash flow hedges 1.3 (0.5)
------ ------
Tax on profits has been calculated at the rates of taxation prevailing in the territories in which the Group operates.
Share of tax charge of associates and joint ventures of US$52.7 million (2020: US$1 8 .8 million) is included in share of results of associates and joint ventures.
7. NON-TRADING ITEMS
Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties; gains and losses arising from the sale of businesses and investment properties; impairment of non-depreciable intangible assets; provisions for the closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.
An analysis of non-trading items after interest, tax and non-controlling interests is set out below:
Six months ended 30th June
20 21 2020
US$m US$m
Change in fair value of investment properties (1,248.8) (2,062.9)
Deferred tax on change in fair value of investment
properties (4.8) 12.3
Share of change in fair value of investment
properties of
associates and joint ventures (net of deferred
tax) (4.4) (134.5)
Asset impairment reversal 0.5 -
Non-controlling interests (1.8) 4.7
(1,259.3) (2,180.4)
--------- -----------
8. EARNINGS PER SHARE
Earnings per share are calculated on loss attributable to shareholders of US$864.9 million (2020: US$1,827.6 million) and on the weighted average number of 2,333.9 million (2020: 2,3 33 . 9 million) shares in issue during the period.
Earnings per share are additionally calculated based on underlying profit attributable to shareholders. A reconciliation of earnings is set out below:
Six months ended 30th June
2021 2020
Earnings Earnings
per share per share
US$m USc US$m USc
Underlying profit attributable
to
shareholders 394.4 16.90 352.8 15.12
Non-trading items (note 7) (1,259.3) (2,180.4)
Loss attributable to shareholders (864.9) (37.06) (1,827.6) (78.31)
--------- ---------
9. DIVIDS
Six months ended 30th June
2021 2020
US$m US$m
Final dividend in respect of 2020 of USc 16
.00
(2019: USc16.00) per share 373.4 373.4
----- -----
An interim dividend in respect of 20 21 of USc 6 .00 (2020: USc6.00) per share amounting to a total of US$140.0 million (2020: US$140. 0 million) is declared by the Board and will be accounted for as an appropriation of revenue reserves in the year ending 31st December 20 21 .
10. INVESTMENT PROPERTIES
Year ended
31st
Six months ended 30th June December
2021 2020 2020
US$m US$m US$m
At beginning of period 30,083.3 33,191.2 33,191.2
Exchange differences (45.9) 154.3 635.8
Additions 26.1 4,553.1 4,621.3
Disposal of subsidiaries - - (4,921.6)
Decrease in fair value (1,248.8) (2,062.9) (3,443.4)
----------
At end of period 28,814.7 35,835.7 30,083.3
--------- --------- ----------
11. ASSOCIATES AND JOINT VENTURES
At 31st
At 30th June December
2021 2020 2020
US$m US$m US$m
By business
Investment Properties 4,907.3 3,540.0 5,132.1
Development Properties 4,083.3 3,299.9 3,789.1
----------
8,990.6 6,839.9 8,921.2
------- ------- ----------
12. BORROWINGS
At 30th June At 31st December
2021 2020 2020
US$m US$m US$m
Current
Bank overdrafts 3.4 2.6 6.2
Bank loans 62.4 317.3 100.3
Current portion of long-term
borrowings
* bank loans 218.9 42.9 516.8
* medium term notes 621.8 - 66.2
906.5 362.8 689.5
Long-term
Bank loans 2,339.5 2,401.8 1,939.1
Medium term notes
- due 2021 - 66.7 -
- due 2022 65.0 623.9 622.7
- due 2023 179.9 180.1 180.1
- due 2024 411.0 416.1 414.3
- due 2025 645.4 647.0 646.2
- due 2026 38.6 38.8 38.8
- due 2027 186.7 186.8 186.8
- due 2028 183.2 183.5 183.5
- due 2029 121.8 121.9 121.9
- due 2030 697.9 697.6 697.9
- due 2031 25.5 25.5 25.5
- due 2032 140.6 140.7 140.8
- due 2033 89.5 89.6 89.6
- due 203 4 77.4 77.5 77.5
- due 203 5 254.6 51.1 254.9
- due 2038 109.5 105.6 111.3
- due 203 9 110.5 106.6 112.4
- due 2040 32.1 32.1 32.1
3,369.2 3,791.1 3,936.3
5,708.7 6,192.9 5,875.4
------- ------- ----------------
6,615.2 6,555.7 6,564.9
------- ------- ----------------
13. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2021 and 31st December 2020 are as follows:
Other
Financial financial
Fair value of assets liabilities Total
hedging at amortised at amortised carrying Fair
instruments costs costs amount value
US$m US$m US$m US$m US$m
30th June 2021
Financial assets measured
at fair value
Derivative financial instruments 24.5 - - 24.5 24.5
------ --------------
Financial assets not measured
at fair
value
Debtors - 248.5 - 248.5 248.5
Bank balances - 2,352.9 - 2,352.9 2,352.9
------ ------------- --------- ---------
- 2,601.4 - 2,601.4 2,601.4
------ ------------- -------------- --------- ---------
Financial liabilities measured
at fair
value
Derivative financial instruments (18.2) - - (18.2) (18.2)
------ --------------
Financial liabilities not
measured at
fair value
Borrowings - - (6,615.2) (6,615.2) (6,910.5)
Trade and other payable
excluding
non-financial liabilities - - (886.0) (886.0) (886.0)
- - (7,501.2) (7,501.2) (7,796.5)
------ ------------- -------------- --------- ---------
31st December 2020
Financial assets measured
at fair value
Derivative financial instruments 33.4 - - 33.4 33.4
------ ---------
Financial assets not measured
at fair
value
Debtors - 242.3 - 242.3 242.3
Bank balances - 1,996.6 - 1,996.6 1,996.6
------ ------- --------- -----------
- 2,238.9 - 2,238.9 2,238.9
------ ------- --------- --------- -----------
Financial liabilities measured
at fair
value
Derivative financial instruments (16.1) - - (16.1) (16.1)
------ ------- --------- --------- -----------
Financial liabilities not
measured at
fair value
Borrowings - - (6,564.9) (6,564.9) (6,904.0)
Trade and other payable
excluding
non-financial liabilities - - (802.4) (802.4) (802.4)
- - (7,367.3) (7,367.3) (7,706.4)
------ ------- --------- --------- -----------
Fair value estimation
(a) Financial instruments that are measured at fair value based on observable current market transactions
At 30th At 31st December
June 2021 2020
US$m US$m
Assets
Derivative financial instruments
at fair value
- through other comprehensive
income 6.3 9.7
- through profit and loss 18.2 23.7
----------- ----------------
24.5 33.4
----------- ----------------
Liabilities
Derivative financial instruments
at fair value
- through other comprehensive
income (18.2) (16.1)
The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at the balance sheet date. The rates for interest rate swaps and forward foreign exchange contracts are calculated by reference to market interest rates and foreign exchange rates.
There were no changes in valuation techniques during the six months ended 30th June 20 21 and the year ended 31st December 2020.
(b) Financial instruments that are not measured at fair value
The fair values of current debtors, bank balances, current creditors and current borrowings are assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities.
The fair values of long-term borrowings are based on market prices or are estimated using the expected future payments discounted at market interest rates.
14. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
Total capital commitments at 30th June 2021 and 31st December 2020 amounted to US$1,109.3 million and US$828.8 million, respectively.
Various Group companies are involved in litigation arising in the ordinary course of their respective businesses. Having reviewed outstanding claims and taking into account legal advice received, the Directors are of the opinion that adequate provisions have been made in the condensed financial statements.
15. RELATED PARTY TRANSACTIONS
Jardine Strategic Limited ('JSL') became the parent company of the Group following the completion of the simplification of the Group's parent company structure in April 2021. Jardine Strategic Holdings Limited and JMH Bermuda Limited, a wholly-owned subsidiary of the Group's ultimate parent company, Jardine Matheson Holdings Limited ('JMH'), amalgamated under the Bermuda Companies Act to form JSL, a wholly-owned subsidiary of JMH. Both JMH and JSL are incorporated in Bermuda.
In the normal course of business, the Group has entered into a variety of transactions with the subsidiaries, associates and joint ventures of JMH ('Jardine Matheson group members'). The more significant of these transactions during the six months ended 30th June 2021 are described below:
Management fee
The management fee payable by the Group, under an agreement entered into in 1995, to Jardine Matheson Limited ('JML') was US$2.0 million (2020: US$1.8 million), being 0.5% per annum of the Group's underlying profit in consideration for management consultancy services provided by JML, a wholly-owned subsidiary of JMH.
Property and other services
The Group rented properties to Jardine Matheson group members. Gross rents on such properties amounted to US$9.5 million (2020: US$10.3 million).
The Group provided project management services and property management services to Jardine Matheson group members amounting to US$1.1 million (2020: US$1.3 million).
Jardine Matheson group members provided property maintenance and other services to the Group in aggregate amounting to US$22.8 million (2020: US$25.1 million).
Hotel management services
Jardine Matheson group members provided hotel management services to the Group amounting to US$1.2 million (2020: US$0.4 million).
Outstanding balances with associates and joint ventures
Amounts of outstanding balances with associates and joint ventures are included in debtors and creditors as appropriate.
Hongkong Land Holdings Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain unchanged:
-- Economic Risk -- Commercial Risk and Financial Risk -- Regulatory and Political Risk -- Pandemic, Natural Disasters, Climate Change and Terrorism -- Cybersecurity Risk
For greater detail, please refer to page 93 of the Company's Annual Report for 2020, a copy of which is available on the Company's website www.hkland.com.
Responsibility Statement
The Directors of the Company confirm to the best of their knowledge that:
(a) the condensed financial statements have been prepared in accordance with IAS 34; and
(b) the interim management report includes a fair review of all information required to be disclosed by the Disclosure Guidance and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Conduct Authority in the United Kingdom.
For and on behalf of the Board
Robert Wong
Simon Dixon
Directors
Dividend Information for Shareholders
The interim dividend of USc6.00 per share will be payable on 13th October 2021 to shareholders on the register of members at the close of business on 20th August 2021. The shares will be quoted ex-dividend on 19th August 2021, and the share registers will be closed from 23rd to 27th August 2021, inclusive.
Shareholders will receive their cash dividends in United States Dollars, except when elections are made for alternate currencies in the following circumstances.
Shareholders on the Jersey branch register
Shareholders registered on the Jersey branch register will have the option to elect for their dividends to be paid in Sterling. These shareholders may make new currency elections for the 2021 interim dividend by notifying the United Kingdom transfer agent in writing by
24th September 2021. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing on 29th September 2021.
Shareholders holding their shares through CREST in the United Kingdom will receive their cash dividends in Sterling only as calculated above.
Shareholders on the Singapore branch register who hold their shares through T he Central Depository (Pte) Limited ('CDP')
Shareholders who are on CDP's Direct Crediting Service ('DCS')
Those shareholders who are on CDP's DCS will receive their cash dividends in Singapore Dollars unless they opt out of CDP Currency Conversion Service, through CDP, to receive United States Dollars.
Shareholders who are not on CDP's DCS
Those shareholders who are not on CDP's DCS will receive their cash dividends in United States Dollars unless they elect through CDP to receive Singapore Dollars.
Shareholders on the Singapore branch register who wish to deposit their shares into the CDP system by the dividend record date, being 20th August 2021, must submit the relevant documents to M & C Services Private Limited, the Singapore branch registrar, by no later than 5.00 p.m. (local time) on 19th August 2021.
About Hongkong Land Group
Hongkong Land is a major listed property investment, management and development group. Founded in 1889, Hongkong Land's business is built on excellence, integrity and partnership.
The Group owns and manages more than 850,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong, Singapore, Beijing and Jakarta . Its properties attract the world's foremost companies and luxury brands.
The Group's Central Hong Kong portfolio represents some 450,000 sq. m. of prime property. It has a further 165,000 sq. m. of prestigious office space in Singapore mainly held through joint ventures, a luxury retail centre at Wangfujing in Beijing, and a 50% interest in a leading office complex in Central Jakarta. The Group also has a number of high quality residential, commercial and mixed-use projects under development in cities across China and Southeast Asia. In Singapore, its subsidiary, MCL Land, is a well-established residential developer.
Hongkong Land Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. The Group's assets and investments are managed from Hong Kong by Hongkong Land Limited. Hongkong Land is a member of the Jardine Matheson Group.
- end -
For further information, please contact:
Hongkong Land Limited Robert Wong (852) 2842 8428 Simon Dixon (852) 2842 8101 Mark Lam (852) 2842 8211 Brunswick Group Limited Andrea Ngai (852) 3512 5093
As permitted by the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority in the United Kingdom, the Company will not be posting a printed version of the Half-Yearly Results announcement to shareholders. The Half-Yearly Results announcement will remain available on the Company's website, www.hkland.com, together with other Group announcements.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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END
IR DKCBPFBKKOOB
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