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HKLB Hong Kong Land Holdings Ld

7.41
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
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 00:00:00
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

Hongkong Land Hldgs Ltd Half Yearly Results (8227M)

03/08/2017 10:06am

UK Regulatory


TIDMHKLD TIDMJAR TIDMJDS

RNS Number : 8227M

Hongkong Land Hldgs Ltd

03 August 2017

   To: Business Editor                                                           3rd August 2017 

For immediate release

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

HONGKONG LAND HOLDINGS LIMITED

HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30TH JUNE 2017

Highlights

   --    Underlying profit up 32% 
   --    Positive performance from investment properties 
   --    Higher sales completions 
   --    New property developments in Singapore, Nanjing and Wuhan 

"The good performance of the Group's investment property portfolio is expected to continue in the second half of the year, although the contribution from development properties will not benefit from further sales completions in Singapore."

Ben Keswick

Chairman

Results

 
 
                            (unaudited) 
                                             Six months ended 30th 
                                                              June 
                                                    2017      2016   Change 
                                                    US$m      US$m        % 
 
 
 Underlying profit attributable to 
  shareholders(#)                                    517       393      +32 
 Profit attributable to shareholders               3,125     1,263     +147 
 Shareholders' funds                              34,221   31,294*       +9 
 Net debt                                          1,882    2,008*       -6 
 
 
                                                     USc       USc        % 
 
 
 Underlying earnings per share(#)                  21.99     16.70      +32 
 Earnings per share                               132.83     53.70     +147 
 Interim dividend per share                         6.00      6.00        - 
 
 
                                                     US$       US$        % 
 
 
 Net asset value per share                         14.54    13.30*       +9 
 
 
  # 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 8 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 2016 
 
 
 
 

The interim dividend of USc6.00 per share will be payable on 19th October 2017 to shareholders on the

register of members at the close of business on 25th August 2017.

HONGKONG LAND HOLDINGS LIMITED

HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30TH JUNE 2017

OVERVIEW

The Group's investment properties produced an increased contribution due to higher average rents achieved in Hong Kong. Of the Group's development properties, being residential and mixed-use projects developed for sale in the short to medium-term, higher sales completions led to increased profits in both mainland China and Singapore.

PERFORMANCE

During the first half of the year, the Group's underlying profit attributable to shareholders was US$517 million, compared with US$393 million in 2016. The profit attributable to shareholders was US$3,125 million after accounting for a net gain of US$2,608 million arising on the revaluation of the Group's investment properties. This compares with a profit of US$1,263 million in 2016, after a net revaluation gain of US$870 million.

The net asset value per share at 30th June 2017 was US$14.54, compared to US$13.30 at 31st December 2016.

The Directors have declared an unchanged interim dividend of USc6.00 per share.

GROUP REVIEW

Investment Properties

In Hong Kong, office rental reversions were positive as market supply remained tight. Vacancy in the Group's Central office portfolio at 30th June 2017 was 1.5%, compared with 2.2% at the end of 2016 and 3.1% at 30th June 2016. The Group's average office rent rose to HK$106 per sq. ft, compared to HK$103 per sq. ft in both the first and second halves of 2016. The Group's Central retail portfolio was 99.4% occupied, compared to 100% at the end of 2016 and at 30th June 2016. While base rents were little changed on reversion, the positive reversions seen in 2016 led to the average retail rent increasing to HK$224 per sq. ft, compared with HK$216 per sq. ft and HK$220 per sq. ft in the first and second halves of 2016, respectively.

Mildly negative rental reversions continued in the Group's Singapore office portfolio, reflecting the current relative surplus of market supply, with vacancy at the end of June of 0.2% compared with 0.1% at the end of 2016 and 1.0% at 30th June 2016. The average office rent decreased slightly to S$9.1 per sq. ft, compared with S$9.4 per sq. ft and S$9.2 per sq. ft in the first and second halves of 2016, respectively.

In mainland China, the construction and leasing of the Group's luxury retail and hotel complex in Beijing, WF CENTRAL in Wangfujing, is progressing well, with the retail component scheduled to open in late 2017 and the 74-room Mandarin Oriental hotel in 2018. In Jakarta, the 73,000 sq. m. fifth tower at Jakarta Land, the Group's 50%-owned joint venture, is due to complete in early 2018. In Cambodia, space in the Group's 26,000 sq. m. prime mixed-use complex is being progressively taken up by tenants.

In June 2017, a joint venture agreement was reached to construct and manage a well-located site within the Marina Bay Financial District of Singapore with a developable area of 120,000 sq. m. The Group will have a 33% interest in the project, which will be connected to its existing portfolio in the district.

Development Properties

In mainland China the business benefited from further completions of primarily residential units and positive market sentiment, resulting in both an increase in overall contracted sales and an improved profit contribution. The attributable interest in contracted sales in mainland China was US$701 million in the first half of 2017, compared to US$432 million and US$673 million in the first and second halves of 2016, respectively. At 30th June 2017, the Group had US$1,421 million in sold but unrecognised contracted sales, compared with US$1,083 million at the end of 2016.

During the period, the Group entered into two new markets in mainland China. In February 2017, a conditional agreement was reached to develop jointly a mixed-use site in Wuhan, with a developable area of 494,000 sq. m., in which the Group will have a 50% interest. In April 2017, an agreement was signed to develop jointly a mixed-use site in Nanjing, with a developable area of 217,000 sq. m., in which the Group will have a 33% interest. Both projects will be developed over multiple phases through to 2021.

Results from the Group's residential development activities in Singapore reflected the recognition of profit on the 699-unit LakeVille project, which was completed during the first half of the year, while there were no completions in the first half of 2016. Pre-sales continued at the Sol Acres and Lake Grande projects with satisfactory results. In May 2017, the Group won a tender for a residential site with a developable area of 98,000 sq. m., which is expected to complete in 2021.

Of the Group's other properties, three joint venture residential projects in Indonesia are advancing on schedule. In the Philippines, satisfactory progress is being made in the construction of a 40%-owned 182-unit luxury apartment block in Manila and a 40%-owned mixed-use development in Cebu. In Thailand, the Group entered into a 49%-held joint venture to develop a residential site, with a developable area of 38,000 sq. m. Construction is expected to commence in early 2018 and will complete in 2020.

Financing

The Group's financial position remains strong with net debt of US$1.9 billion at 30th June 2017, down from US$2.0 billion at the end of 2016. Net gearing was 5%, compared with 6% at the end of the year.

OUTLOOK

The good performance of the Group's investment property portfolio is expected to continue in the second half of the year, although the contribution from development properties will not benefit from further sales completions in Singapore.

Ben Keswick

Chairman

 
 
Hongkong Land Holdings Limited 
 Consolidated Profit and Loss Account 
 
 
                                           (unaudited) 
                                   Six months ended 30th June                            Year ended 31st December 
                               2017                           2016                                 2016 
 
 
                    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)       1,296.7        -  1,296.7        782.8        -    782.8          1,993.9            -    1,993.9 
Net operating 
 costs (note 
 3)                    (786.4)        -  (786.4)      (327.3)        -  (327.3)        (1,023.3)            -  (1,023.3) 
Change in fair 
 value of 
 investment 
 properties                  -  2,693.6  2,693.6            -    986.2    986.2                -      2,549.9    2,549.9 
Asset impairment 
 reversals                   -        -        -            -        -        -                -          1.2        1.2 
 
Operating profit 
 (note 4)                510.3  2,693.6  3,203.9        455.5    986.2  1,441.7            970.6      2,551.1    3,521.7 
 
 
Financing charges       (57.4)        -   (57.4)       (54.4)        -   (54.4)          (110.4)            -    (110.4) 
Financing income          21.6        -     21.6         22.1        -     22.1             41.5            -       41.5 
 
 
Net financing 
 charges                (35.8)        -   (35.8)       (32.3)        -   (32.3)           (68.9)            -     (68.9) 
Share of results 
 of associates 
 and 
 joint ventures 
 (note 5)                135.3   (76.4)     58.9         59.6  (120.9)   (61.3)            117.0       (57.9)       59.1 
                   -----------  -------  -------  -----------  -------  -------     ------------     --------  --------- 
 
Profit before tax        609.8  2,617.2  3,227.0        482.8    865.3  1,348.1          1,018.7      2,493.2    3,511.9 
Tax (note 6)            (91.5)      0.1   (91.4)       (89.0)      1.0   (88.0)          (168.1)          0.8    (167.3) 
                   -----------  -------  -------  -----------  -------  -------     ------------     --------  --------- 
 
Profit after tax         518.3  2,617.3  3,135.6        393.8    866.3  1,260.1            850.6      2,494.0    3,344.6 
                   -----------  -------  -------  -----------  -------  -------     ------------     --------  --------- 
 
Attributable to: 
Shareholders of 
 the Company             517.4  2,607.9  3,125.3        392.8    870.6  1,263.4            847.8      2,498.5    3,346.3 
Non-controlling 
 interests                 0.9      9.4     10.3          1.0    (4.3)    (3.3)              2.8        (4.5)      (1.7) 
                   -----------  -------  -------  -----------  -------  -------     ------------     --------  --------- 
 
                         518.3  2,617.3  3,135.6        393.8    866.3  1,260.1            850.6      2,494.0    3,344.6 
                   -----------  -------  -------  -----------  -------  -------     ------------     --------  --------- 
 
 
                           USc               USc          USc               USc              USc                     USc 
 
 
Earnings per 
 share (note 
 7)                      21.99            132.83        16.70             53.70            36.03                  142.23 
 
 
 
 
 
Hongkong Land Holdings Limited 
 Consolidated Statement of Comprehensive Income 
 
 
                                                                             Year 
                                                            (unaudited)     ended 
                                                       Six months ended      31st 
                                                              30th June  December 
                                                         2017      2016      2016 
                                                         US$m      US$m      US$m 
 
 
Profit for the period                                 3,135.6   1,260.1   3,344.6 
Other comprehensive income/(expense) 
 
Items that will not be reclassified 
 to 
   profit or loss: 
 
Remeasurements of defined benefit 
   plans                                                    -         -     (1.2) 
Tax on items that will not be 
 reclassified                                               -         -       0.2 
 
 
                                                            -         -     (1.0) 
Items that may be reclassified 
   subsequently to profit or loss: 
                                                      -------  --------  -------- 
 
Net exchange translation differences                   (25.1)      26.4   (172.1) 
Revaluation of other investments                         36.7     (7.9)     (9.1) 
Cash flow hedges 
 
 
  *    net (loss)/gain arising during the period       (31.4)      36.0      41.8 
- transfer to profit and loss                           (1.6)     (1.3)     (2.5) 
 
 
                                                       (33.0)      34.7      39.3 
Tax relating to items that may 
 be 
   reclassified                                           5.4     (5.7)     (6.5) 
Share of other comprehensive 
   income/(expense) of associates 
   and joint ventures                                   125.7      52.0   (144.9) 
 
 
                                                        109.7      99.5   (293.3) 
 
 
Other comprehensive income/(expense) 
   for the period, net of tax                           109.7      99.5   (294.3) 
                                                      -------  --------  -------- 
 
Total comprehensive income for 
 the 
   period                                             3,245.3   1,359.6   3,050.3 
                                                      -------  --------  -------- 
 
Attributable to: 
Shareholders of the Company                           3,232.9   1,364.0   3,055.2 
Non-controlling interests                                12.4     (4.4)     (4.9) 
                                                      -------  --------  -------- 
 
                                                      3,245.3   1,359.6   3,050.3 
    ------------------------------------------------  -------  --------  -------- 
 
 
 
 
Hongkong Land Holdings Limited 
 Consolidated Balance Sheet 
 
 
                                             (unaudited)    At 31st 
                                            At 30th June   December 
                                         2017       2016       2016 
                                         US$m       US$m       US$m 
 
 
Net operating assets 
Tangible fixed assets                    50.0       36.6       44.9 
Investment properties (note 10)      30,360.0   26,079.4   27,712.3 
Associates and joint ventures         4,659.3    4,583.6    4,460.7 
Other investments                        88.4       53.3       52.2 
Non-current debtors                      36.8       80.8       60.1 
Deferred tax assets                      11.0        9.4        8.7 
Pension assets                              -        0.1          - 
 
Non-current assets                   35,205.5   30,843.2   32,338.9 
 
 
Properties for sale                   1,971.7    2,745.6    2,217.4 
Current debtors                         564.4      377.1      480.3 
Current tax assets                       19.0       18.5        9.2 
Bank balances                         1,902.0    1,560.3    1,908.9 
                                    ---------  ---------  --------- 
 
Current assets                        4,457.1    4,701.5    4,615.8 
                                    ---------  ---------  --------- 
 
Current creditors                   (1,354.1)  (1,640.2)  (1,490.3) 
Current borrowings (note 11)          (364.4)     (18.8)    (220.7) 
Current tax liabilities               (116.9)    (119.9)     (80.0) 
                                    ---------  ---------  --------- 
 
Current liabilities                 (1,835.4)  (1,778.9)  (1,791.0) 
                                    ---------  ---------  --------- 
 
 
Net current assets                    2,621.7    2,922.6    2,824.8 
Long-term borrowings (note 11)      (3,419.4)  (3,863.0)  (3,695.7) 
Deferred tax liabilities              (122.9)    (101.9)    (121.5) 
Pension liabilities                     (2.4)      (0.2)      (1.8) 
Non-current creditors                  (29.1)     (26.8)     (30.3) 
                                    ---------  ---------  --------- 
 
                                     34,253.4   29,773.9   31,314.4 
                                    ---------  ---------  --------- 
 
Total equity 
Share capital                           235.3      235.3      235.3 
Share premium                           386.9      386.9      386.9 
Revenue and other reserves           33,599.3   29,121.0   30,672.2 
                                    ---------  ---------  --------- 
 
Shareholders' funds                  34,221.5   29,743.2   31,294.4 
Non-controlling interests                31.9       30.7       20.0 
                                    ---------  ---------  --------- 
 
                                     34,253.4   29,773.9   31,314.4 
                                    ---------  ---------  --------- 
 
 
 
 
Hongkong Land Holdings Limited 
 Consolidated Statement of Changes in Equity 
 
 
                                                                       Attributable to  Attributable 
                                                                          shareholders       to non- 
                          Share      Share   Revenue   Hedging  Exchange        of the   controlling       Total 
                        capital    premium  reserves  reserves  reserves       Company     interests      equity 
                           US$m       US$m      US$m      US$m      US$m          US$m          US$m        US$m 
 
 
Six months ended 30th 
June 2017 (unaudited) 
At 1st January 
 2017                     235.3      386.9  31,093.6      18.6   (440.0)      31,294.4          20.0    31,314.4 
Total 
 comprehensive 
 income                       -          -   3,162.0    (30.0)     100.9       3,232.9          12.4     3,245.3 
Dividends paid by 
 the Company 
 (note 
 9)                           -          -   (305.8)         -         -       (305.8)             -     (305.8) 
Dividends paid to 
 non-controlling 
 shareholders                 -          -         -         -         -             -         (0.5)       (0.5) 
                        -------    -------  --------  --------  --------  ------------  ------------  ---------- 
 
At 30th June 2017         235.3      386.9  33,949.8    (11.4)   (339.1)      34,221.5          31.9    34,253.4 
                        -------    -------  --------  --------  --------  ------------  ------------  ---------- 
 
Six months ended 
30th June 2016 
(unaudited) 
At 1st January 
 2016                     235.3      386.9  28,205.8     (9.1)   (133.9)      28,685.0          35.4    28,720.4 
Total 
 comprehensive 
 income                       -          -   1,255.5      24.6      83.9       1,364.0         (4.4)     1,359.6 
Dividends paid by 
 the Company 
 (note 
 9)                           -          -   (305.8)         -         -       (305.8)             -     (305.8) 
Dividends paid to 
 non-controlling 
 shareholders                 -          -         -         -         -             -         (0.3)       (0.3) 
                        -------    -------  --------  --------  --------  ------------  ------------  ---------- 
 
At 30th June 2016         235.3      386.9  29,155.5      15.5    (50.0)      29,743.2          30.7    29,773.9 
                        -------    -------  --------  --------  --------  ------------  ------------  ---------- 
 
Total comprehensive income for the six months ended 30th June 2017 included in revenue reserves mainly 
 comprises profit attributable to shareholders of the Company of US$3,125.3 million (2016: US$1,263.4 million) 
 and a fair value gain on other investments of US$36.7 million (2016: a loss of US$7.9 million). The cumulative 
 fair value gain on other investments amounted to US$51.1 million (2016: US$15.6 million). 
 
 
Year ended 31st 
December 2016 
At 1st January 2016       235.3      386.9  28,205.8     (9.1)   (133.9)      28,685.0          35.4  28,720.4 
Total comprehensive 
 income                       -          -   3,336.2      27.7   (308.7)       3,055.2         (4.9)   3,050.3 
Dividends paid by the 
 Company                      -          -   (447.0)         -         -       (447.0)             -   (447.0) 
Dividends paid to 
 non-controlling 
 shareholders                 -          -         -         -         -             -         (4.2)     (4.2) 
Unclaimed dividends 
 forfeited                    -          -       0.5         -         -           0.5             -       0.5 
Change in interests 
 in subsidiaries              -          -     (1.9)         -       2.6           0.7         (6.3)     (5.6) 
                       --------   --------  --------  --------  --------  ------------  ------------  -------- 
 
At 31st December 2016     235.3      386.9  31,093.6      18.6   (440.0)      31,294.4          20.0  31,314.4 
                       --------   --------  --------  --------  --------  ------------  ------------  -------- 
 
The comprehensive income for the year ended 31st December 2016 included in revenue reserves mainly comprises 
 profit attributable to shareholders of the Company of US$3,346.3 million and a fair value loss on other 
 investments of US$9.1 million. The cumulative fair value gain on other investments amounted to US$14.4 
 million. 
 
 
 
 
 
Hongkong Land Holdings Limited 
 Consolidated Cash Flow Statement 
 
 
                                                                (unaudited) 
                                                           Six months ended      Year ended 
                                                                  30th June   31st December 
                                                              2017     2016            2016 
                                                              US$m     US$m            US$m 
 
 
Operating activities 
 
 
Operating profit                                           3,203.9  1,441.7         3,521.7 
Depreciation                                                   1.4      1.5             3.1 
Reversal of writedowns on properties 
 for sale                                                        -    (1.5)           (3.2) 
Change in fair value of investment 
 properties                                              (2,693.6)  (986.2)       (2,549.9) 
Asset impairment reversals                                       -        -           (1.2) 
Decrease in properties for sale                              323.7     17.7           392.4 
Increase in debtors                                         (40.6)   (20.0)         (131.7) 
(Decrease)/increase in creditors                           (150.4)     70.5           (7.5) 
Interest received                                             18.2     21.2            36.4 
Interest and other financing charges 
 paid                                                       (58.0)   (57.7)         (111.4) 
Tax paid                                                    (61.2)   (49.7)         (140.6) 
Dividends from associates and joint 
 ventures                                                     29.3     29.9            88.1 
 
 
Cash flows from operating activities                         572.7    467.4         1,096.2 
 
Investing activities 
 
 
Major renovations expenditure                               (47.3)   (47.0)          (91.3) 
Developments capital expenditure                            (52.5)   (62.2)         (148.2) 
Investments in and loans to associates 
 and 
  joint ventures                                           (262.1)    (4.7)         (104.2) 
Advances and repayments from associates 
  and joint ventures                                         230.6     33.3           102.8 
Payment of deposit for a joint 
 venture                                                    (43.5)        -           (4.2) 
 
 
Cash flows from investing activities                       (174.8)   (80.6)         (245.1) 
 
Financing activities 
 
 
Drawdown of borrowings                                        74.1    102.8           266.7 
Repayment of borrowings                                    (219.9)  (169.6)         (240.6) 
Dividends paid by the Company                              (302.0)  (302.9)         (443.8) 
Dividends paid to non-controlling 
 shareholders                                                (0.5)    (2.1)           (4.2) 
Change in interests in subsidiaries                           15.0        -          (20.2) 
 
 
Cash flows from financing activities                       (433.3)  (371.8)         (442.1) 
 
Net cash (outflow)/inflow                                   (35.4)     15.0           409.0 
Cash and cash equivalents at beginning 
 of 
  period                                                   1,898.4  1,565.9         1,565.9 
Effect of exchange rate changes                               28.5   (22.4)          (76.5) 
 
Cash and cash equivalents at end 
 of period                                                 1,891.5  1,558.5         1,898.4 
                                                       -----------  -------  -------------- 
 
 
 

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'. The condensed financial statements have been prepared on a going concern basis. The condensed financial statements have not been audited or reviewed by the Group's auditors pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.

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

   2.   REVENUE 
 
             Six months ended 30th June 
                            2017   2016 
                            US$m   US$m 
 
 
 Rental income             445.5  427.7 
 Service income             67.3   64.9 
 Sales of properties       783.9  290.2 
                         -------  ----- 
 
                         1,296.7  782.8 
                         -------  ----- 
 

Service income includes service and management charges and hospitality service income.

   3.   NET OPERATING COSTS 
 
                   Six months ended 30th June 
                                2017     2016 
                                US$m     US$m 
 
 
 Cost of sales               (729.7)  (280.6) 
 Other income                    6.1      5.0 
 Administrative expenses      (62.8)   (51.7) 
                             -------  ------- 
 
                             (786.4)  (327.3) 
                             -------  ------- 
 

4. OPERATING PROFIT

 
                                         Six months ended 30th June 
                                                      2017     2016 
                                                      US$m     US$m 
 
 By business 
 Investment Properties                               433.5    410.6 
 Development Properties                              110.4     73.4 
 Corporate                                          (33.6)   (28.5) 
                                                   -------  ------- 
 
 Underlying business performance                     510.3    455.5 
 Change in fair value of investment properties     2,693.6    986.2 
                                                   -------  ------- 
 
                                                   3,203.9  1,441.7 
                                                   -------  ------- 
 
   5.   SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES 
 
                                         Six months ended 30th June 
                                                      2017     2016 
                                                      US$m     US$m 
 
 By business 
 Investment Properties 
 
 - operating profit                                   70.9     76.4 
 - net financing charges                            (17.8)   (21.0) 
 - tax                                               (8.7)    (8.9) 
 
 
 - net profit                                         44.4     46.5 
 
 Development Properties 
 
 - operating profit                                  195.6     25.5 
 - net financing charges                               3.7      1.6 
 - tax                                             (105.3)   (10.5) 
 - non-controlling interests                         (3.1)    (3.5) 
 
 
 - net profit                                         90.9     13.1 
                                                   -------  ------- 
 
 Underlying business performance                     135.3     59.6 
 Change in fair value of investment properties 
    (net of deferred tax)                           (76.4)  (120.9) 
 
                                                      58.9   (61.3) 
                                                   -------  ------- 
 
   6.   TAX 
 
                                           Six months ended 30th June 
                                                         2017    2016 
                                                         US$m    US$m 
 
 
 Tax charged to profit and loss is analysed 
  as follows: 
 
 Current tax                                           (87.7)  (90.3) 
 Deferred tax 
 - changes in fair value of investment 
  properties                                              0.1     1.0 
 - other temporary differences                          (3.8)     1.3 
                                                       ------  ------ 
 
                                                       (91.4)  (88.0) 
                                                       ------  ------ 
 
 Tax relating to components of other comprehensive 
  income is analysed as follows: 
 
 Cash flow hedges                                         5.4   (5.7) 
                                                       ------  ------ 
 

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$90.3 million (2016: US$8.8 million) is included in share of results of associates and joint ventures.

   7.   EARNINGS PER SHARE 

Earnings per share are calculated on profit attributable to shareholders of US$3,125.3 million (2016: US$1,263.4 million) and on the weighted average number of 2,352.8 million (2016: 2,352.8 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 
                                               2017                 2016 
 
 
                                                   Earnings             Earnings 
                                                  per share            per share 
                                           US$m         USc     US$m         USc 
 
 
 Underlying profit attributable 
  to shareholders                         517.4       21.99    392.8       16.70 
 Non-trading items (note 8)             2,607.9                870.6 
 
 Profit attributable to shareholders    3,125.3      132.83  1,263.4       53.70 
                                        -------              ------- 
 
   8.   NON-TRADING ITEMS 

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

An analysis of non-trading items is set out below:

 
                                             Six months ended 30th June 
                                                          2017     2016 
                                                          US$m     US$m 
 
 
 Change in fair value of investment properties         2,693.6    986.2 
 Deferred tax on change in fair value of investment 
  properties                                               0.1      1.0 
 Share of change in fair value of investment 
  properties of 
     associates and joint ventures (net of deferred 
      tax)                                              (76.4)  (120.9) 
 Non-controlling interests                               (9.4)      4.3 
 
                                                       2,607.9    870.6 
                                                       -------  ------- 
 
   9.   DIVIDS 
 
                                      Six months ended 30th June 
                                                     2017   2016 
                                                     US$m   US$m 
 
 
   Final dividend in respect of 2016 of USc13.00 
    (2015: USc13.00) per share                      305.8  305.8 
                                                    -----  ----- 
 

An interim dividend in respect of 2017 of USc6.00 (2016: USc6.00) per share amounting to a total of US$141.2 million (2016: US$141.2 million) is declared by the Board and will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2017.

10. INVESTMENT PROPERTIES

 
                                                              Year ended 
                                                                    31st 
                                  Six months ended 30th June    December 
                                              2017      2016        2016 
                                              US$m      US$m        US$m 
 
 
 Net book value at beginning of period    27,712.3  24,957.3    24,957.3 
 Exchange differences                      (127.1)    (12.4)      (71.0) 
 Additions                                    81.2     148.3       276.1 
 Increase in fair value                    2,693.6     986.2     2,549.9 
                                                              ---------- 
 
 Net book value at end of period          30,360.0  26,079.4    27,712.3 
                                          --------  --------  ---------- 
 

11. BORROWINGS

 
                                           At 30th June  At 31st December 
                                          2017     2016              2016 
                                          US$m     US$m              US$m 
 
 
 Current 
 
 
 Bank overdrafts                          10.5      1.8              10.5 
 Current portion of long-term 
  borrowings 
 
   *    bank loans                       317.3     17.0             175.1 
 
   *    medium term notes due 2017        36.6        -              35.1 
 
 
                                         364.4     18.8             220.7 
 
 Long-term 
 
 
 Bank loans                              557.9    919.8             838.0 
 Medium term notes 
 
 - due 2017                                  -     37.8                 - 
 - due 2019                              102.4    103.0             103.1 
 - due 2020                              304.1    309.0             299.6 
 - due 2021                               68.0     71.0              66.8 
 - due 2022                              608.5    623.7             605.1 
 - due 2023                              178.3    179.3             179.5 
 - due 2024                              406.2    420.9             405.5 
 - due 2025                              650.9    652.5             651.8 
 - due 2026                               38.4     38.6              38.6 
 - due 2027                              185.0    186.0             186.1 
 - due 2028                               79.2     79.7              79.7 
 - due 2029                               50.6     50.8              50.9 
 - due 2030                              102.5    103.1             103.2 
 - due 2031                               25.3     25.4              25.4 
 - due 2032                               30.2     30.3              30.3 
 - due 2040                               31.9     32.1              32.1 
 
 
                                       2,861.5  2,943.2           2,857.7 
 
 
                                       3,419.4  3,863.0           3,695.7 
                                       -------  -------  ---------------- 
 
                                       3,783.8  3,881.8           3,916.4 
                                       -------  -------  ---------------- 
 

12. FINANCIAL INSTRUMENTS

Financial instruments by category

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

 
                                                                          Other 
                                                                      financial 
                                                            Other   instruments 
                                                        financial       at fair 
                                                      instruments         value 
                             Derivatives                       at       through       Total 
                  Loans and     used for  Available-    amortised        profit    carrying       Fair 
                receivables      hedging    for-sale         cost      and loss      amount      value 
                       US$m         US$m        US$m         US$m          US$m        US$m       US$m 
 
 
 30th June 2017 
 Assets 
 Other investments        -            -        88.4            -             -        88.4       88.4 
 Debtors              305.2         20.2           -            -          11.9       337.3      337.3 
 Bank balances      1,902.0            -           -            -             -     1,902.0    1,902.0 
                    -------  -----------  ----------  -----------   -----------  ----------  --------- 
 
                    2,207.2         20.2        88.4            -          11.9     2,327.7    2,327.7 
                    -------                                         ----------- 
 
 Liabilities 
 Borrowings               -            -           -    (3,783.8)             -   (3,783.8)  (3,923.9) 
 Creditors 
 excluding 
    non-financial 
    liabilities           -       (11.0)           -      (494.8)             -     (505.8)    (505.8) 
                             -----------  ----------  -----------                ----------  --------- 
 
                          -       (11.0)           -    (4,278.6)             -   (4,289.6)  (4,429.7) 
                    -------  -----------  ----------  -----------                 ---------  --------- 
 
 31st December 
  2016 
 Assets 
 Other investments        -            -        52.2            -             -        52.2       52.2 
 Debtors              276.3         44.5           -            -          11.8       332.6      332.6 
 Bank balances      1,908.9            -           -            -             -     1,908.9    1,908.9 
                    -------  -----------  ----------  -----------   -----------   ---------  --------- 
 
                    2,185.2         44.5        52.2            -          11.8     2,293.7    2,293.7 
                    -------                                         ----------- 
 
 Liabilities 
 Borrowings               -            -           -    (3,916.4)             -   (3,916.4)  (3,988.3) 
 Creditors 
 excluding 
    non-financial 
    liabilities           -        (7.6)           -      (533.3)             -     (540.9)    (540.9) 
                    -------  -----------  ----------  -----------   -----------   ---------  --------- 
 
                          -        (7.6)           -    (4,449.7)             -   (4,457.3)  (4,529.2) 
                    -------  -----------  ----------  -----------   -----------   ---------  --------- 
 
 

Fair value estimation

(i) Financial instruments that are measured at fair value

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

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

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

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

The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at the balance sheet date. The rates for interest rate swaps and 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 2017 and the year ended 31st December 2016.

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

 
                                         Quoted prices            Observable 
                                             in active               current 
                                               markets   market transactions   Total 
                                                  US$m                  US$m    US$m 
 
 
 30th June 2017 
 Assets 
 Available-for-sale financial assets 
 - listed securities                              88.4                     -    88.4 
 Derivative designated at fair value 
 - through other comprehensive income                -                   3.2     3.2 
 - through profit and loss                           -                  17.0    17.0 
                                         -------------  --------------------  ------ 
 
                                                  88.4                  20.2   108.6 
                                         -------------  --------------------  ------ 
 
 Liabilities 
 Derivative designated at fair value 
 - through other comprehensive income                -                 (7.2)   (7.2) 
 - through profit and loss                           -                 (3.8)   (3.8) 
                                         -------------  --------------------  ------ 
 
                                                     -                (11.0)  (11.0) 
 
 31st December 2016 
 Assets 
 Available-for-sale financial assets 
 - listed securities                              52.2                     -    52.2 
 Derivative designated at fair value 
 - through other comprehensive income                -                  28.0    28.0 
 - through profit and loss                           -                  16.5    16.5 
                                         -------------  --------------------  ------ 
 
                                                  52.2                  44.5    96.7 
                                         -------------  --------------------  ------ 
 
 Liabilities 
 Derivative designated at fair value 
 - through profit and loss                           -                 (7.6)   (7.6) 
                                         -------------  --------------------  ------ 
 

There were no transfers among the two categories during the six months ended 30th June 2017 and the year ended 31st December 2016.

   (ii)   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.

13. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Total capital commitments at 30th June 2017 and 31st December 2016 amounted to US$819.2 million and US$623.0 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.

14. RELATED PARTY TRANSACTIONS

The parent company of the Group is Jardine Strategic Holdings Limited and the ultimate holding company is Jardine Matheson Holdings Limited ('JMH'). Both companies 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 are described below:

Management fee

The management fee payable by the Group, under an agreement entered into in 1995, to Jardine Matheson Limited ('JML') in 2017 was US$2.6 million (2016: US$2.0 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 in 2017 amounted to US$10.3 million (2016: US$10.0 million).

The Group provided consultancy services to Jardine Matheson group members in 2017 amounting to US$0.2 million (2016: US$0.2 million).

Jardine Matheson group members provided property maintenance and other services to the Group in 2017 in aggregate amounting to US$22.2 million (2016: US$20.0 million).

Hotel management services

Jardine Matheson group members provided hotel management services to the Group in 2017 amounting to US$1.2 million (2016: US$1.1 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. The amounts are not material.

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 and Financial Risk 
   --    Commercial Risk 
   --    Regulatory and Political Risk 
   --    Terrorism, Pandemic and Natural Disasters 

For greater detail, please refer to page 74 of the Company's Annual Report for 2016, 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

 
 
  The interim dividend of USc6.00 per share will be payable 
   on 19th October 2017 to shareholders on the register of members 
   at the close of business on 25th August 2017. The shares will 
   be quoted ex-dividend on the Singapore Exchange and the London 
   Stock Exchange on 23rd and 24th August 2017, respectively. 
   The share registers will be closed from 28th August to 1st 
   September 2017, inclusive. 
 
   Shareholders will receive their cash dividends in United States 
   dollars, unless they are registered on the Jersey branch register 
   where they will have the option to elect for sterling. These 
   shareholders may make new currency elections for the 2017 
   interim dividend by notifying the United Kingdom transfer 
   agent in writing by 29th September 2017. The sterling equivalent 
   of dividends declared in United States dollars will be calculated 
   by reference to a rate prevailing on 4th October 2017. 
 
   Shareholders holding their shares through CREST in the United 
   Kingdom will receive their cash dividends in sterling only 
   as calculated above. Shareholders holding their shares through 
   The Central Depository (Pte) Limited ('CDP') in Singapore 
   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 25th August 2017, must submit the relevant documents 
   to M & C Services Private Limited, the Singapore branch registrar, 
   no later than 5.00 p.m. (local time) on 24th August 2017. 
 
 

Hongkong Land Group

Hongkong Land is a listed leading 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 almost 800,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong and Singapore. Hongkong Land's properties attract the world's foremost companies and luxury brands.

Its Hong Kong Central 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, and a 50% interest in a leading office complex in Central Jakarta. The Group also has a number of high quality residential and mixed-use projects under development in cities across Greater China and Southeast Asia, including a luxury retail centre at Wangfujing in Beijing. 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 
 
Brunswick Group Limited 
Marie Filotti             (852) 3512 5059 
 

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 company news service from the London Stock Exchange

END

IR UGURWRUPMPWG

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