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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jardine Matheson Holdings Ld | LSE:JARB | London | Ordinary Share | BMG507361001 | ORD US$0.25(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% | 64.35 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Agents & Mgrs | 36.05B | 686M | 2.3655 | 27.20 | 18.66B |
From Apr 2021 to Apr 2024
TIDMJAR
RNS Number : 9377G
Jardine Matheson Hldgs Ltd
29 July 2021
29th July 2021
For i m mediate release
The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.
Jardine Matheson Holdings Limited
Half-Yearly Results for the Six Months ended 30th June 2021
Some signs of improvement, but conditions remain challenging, especially in Southeast Asia
Highlights
-- Underlying profit of US$615 million for the period to 30th June 2021, up 65% against the prior year, but still 17% behind 2019 levels
-- Group simplification by the privatisation of Jardine Strategic Holdings completed in April -- The Group's balance sheet and funding position remain robust -- Strengthening of the strategic partnership with Zhongsheng announced
" There was some improvement in the Group's performance and profitability in the first half compared with the same period last year, but COVID-19 continued to have an impact in most sectors and markets. Conditions are expected to remain challenging for the second half of the year, particularly due to the worsening COVID-19 situation in Southeast Asia, making it difficult to predict full-year performance.
Ensuring the health, wellbeing and safety of our colleagues amid the deepening pandemic continues to be the Group's top priority. On behalf of the Board, I would like to recognise the remarkable resilience shown by colleagues across the Group and thank all of them for their continuing dedication, hard work and professionalism during such challenging times.
The Group has a strong balance sheet and liquidity position and will continue to focus on opportunities to create sustainable long-term growth."
Ben Keswick, Executive Chairman
Results
Hot Features
Premium
(unaudited)
Six months ended 30th
June
2021 2020 Change
US$m US$m %
----------------------------------------- ----------- ----------- -----------
Gross revenue
including 100%
of associates
and joint ventures 52,488 44,936 +17
Revenue 17,492 15,906 +10
Underlying profit*
attributable
to shareholders 615 373 +65
Loss attributable
to shareholders (117) (775) +85
Shareholders'
funds(#) 27,762 29,387 -6
----------------------------------------- ----------- ----------- -----------
US$ US$ %
----------------------------------------- ----------- ----------- -----------
Underlying earnings
per share* 1.86 1.01 +84
Loss per share (0.35) (2.09) +83
Net asset value
per share(#) 94.17 81.32 +16
----------------------------------------- ----------- ----------- -----------
USc USc %
----------------------------------------- ----------- ----------- -----------
Interim dividend
per share 44.00 44.00 -
----------------------------------------- ----------- ----------- -----------
* 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 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 30th June 2021 and 31st December 2020, respectively.
Net asset value per share is based on the book value of shareholders'
funds.
The interim dividend of USc44.00 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 and will be available in cash with a scrip alternative
Chairman's Statement
Overview
There were signs of improvement in the Group's performance and profitability in the first half compared with the same period last year, but COVID-19 continued to have an impact in most sectors and markets, and conditions are expected to remain challenging for the second half of the year. The absence of tourists from the Chinese mainland will continue to impact the performance of the Group's businesses in North Asia, including Hongkong Land's Central retail portfolio in Hong Kong, Dairy Farm's health and beauty business and Mandarin Oriental's hotels. The performance of the Group's businesses in Indonesia and other parts of Southeast Asia is also expected to be significantly affected by the continuing severe impact of the pandemic and related restrictions.
The Group's underlying net profit for the first half was US$615 million, 65% higher than the same period last year. Following the completion in mid-April 2021 of the privatisation of Jardine Strategic Holdings Limited ('JSH') (the 'Transaction'), and the elimination for accounting purposes of the cross-shareholding held by JSH in Jardine Matheson Holdings Limited (the 'Company'), the growth in the Group's underlying net profit in the period reflected both improved business performance - by comparison to the prior year when many of the Group's businesses were most severely impacted by the pandemic and measures to contain it - and a higher share of earnings in businesses formerly held by JSH. Within the overall profit growth of 65% for the period, approximately 59% reflected recovering business performance and 6% the impact of completing the Transaction, with effect from mid-April 2021.
Underlying earnings per share increased by 84% to US $1.86 . Similarly, this increase reflected both business recovery (comprising 63% of the 84% growth) and the effect of the Transaction on earnings and the Company's issued share capital (21%). The revenue of the Group for the period was 10% higher at US$17.5 billion, while gross revenue, including 100% of associates and joint ventures, was up 17% at US$52.5 billion.
The Group recorded a non-trading net loss in the first half of US$732 million, compared with a non-trading net loss of US$1.1 billion in the first half of 2020. This was largely a result of the usual semi-annual revaluation of investment properties in Hongkong Land which was carried out during the period, which produced a net revaluation loss of US$635 million. The Group recorded a loss attributable to shareholders for the period of US$117 million, 85% lower than the loss in the first half of 2020.
Group results in some markets benefitted from government support relating to COVID-19, which totalled US$36 million attributable to the Group, compared to a total of US$78 million in the same period last year. This support is expected to reduce significantly in the second half.
With the exception of Dairy Farm, all of the Group's significant businesses saw improved profits, and there were reduced losses from Mandarin Oriental and Dairy Farm's associate, Maxim's. Group profits, however, still remain around 17% behind the levels seen prior to the onset of the pandemic.
Dividend
The Board is recommending an interim dividend of USc44.00 per share, in line with last year. As explained in the announcement of the Transaction in March 2021, the Group will assess the extent of a one-off uplift in the dividend at the time of the Group's 2021 full year results announcement, when the Group's final results for the year are known.
Significant Developments
The Group continues to actively manage its portfolio of businesses and deploy capital into value-creating opportunities. This was demonstrated in the period by the completion in April 2021 of the successful privatisation of JSH, creating a conventional ownership structure and further increasing the Group's operational efficiency and financial flexibility.
Shortly after the end of the period, the Group announced the strengthening of its strategic partnership with Zhongsheng through the transfer of its Mercedes-Benz auto dealership business operating on the Chinese mainland under the Zung Fu brand. Total consideration of US$1.3 billion will be settled in cash and new Zhongsheng shares, which will increase the Group's shareholding in Zhongsheng on a fully-diluted basis to 20% and solidify its position as the second-largest shareholder after the founders .
Hongkong Land secured three predominantly residential development projects on the Chinese mainland in the period - one in Nanjing and two in Wuhan - as well as two further residential development projects in Singapore.
Dairy Farm carried out the relaunch of its Giant brand in over 100 stores in Malaysia during the first half of the year. The group's yuu Rewards programme in Hong Kong continues to grow and has now attracted over 3.5 million members, with approximately 80 billion points issued. A strategic review of PT Hero's business led to the announcement in May 2021 of a pivot in its trading operations by increasing investment in its strong brands of IKEA, Guardian and Hero Supermarkets and away from the Giant banner, reflecting changing market dynamics and consumer behaviours. The group's Own Brand initiatives continue to gather momentum, with over 1,200 SKUs now launched. Following the successful launch of the Meadows own brand range, Dairy Farm's Chinese own brand range Yu Pin King was also relaunched in the first half. Own Brand penetration has grown approximately 40% since launch.
Jardine Cycle & Carriage increased its interest in Cycle & Carriage Bintang from 59.1% to 88.0% through market purchases and acceptances under a voluntary general offer and increased its interest in REE from 29.8% to 30.8%.
Mandarin Oriental Ritz, Madrid, reopened in April after an extensive restoration and this 50%-owned property is expected to become a flagship property for the brand. The group signed two management contracts in the first half of the year for a new hotel and residences in Hangzhou and a resort in Da Nang, Vietnam.
Despite the short-term challenges of the pandemic, the Board sees it as essential to continue to invest for the long-term in new business opportunities in order to drive momentum and change across the Group, and this has led to several important developments in the period. In March, the Group announced the formation of a strategic cooperation with Hillhouse Capital, a leading Asia-focused private equity firm, in order to drive innovation and digitisation in the Group's portfolio companies, with a focus on investment and business development opportunities predominantly in China, as well as South-East Asia. There will also be close collaboration between the Jardines and Hillhouse value creation teams and respective portfolio companies, in particular in the areas of consumer technology and digital enablement.
Other significant strategic developments in the first half of the year included the announcement in Indonesia in May 2021 of the merger of Gojek - in which Astra has a stake - and Tokopedia to create GoTo group and form the largest technology ecosystem in the country. Astra also invested in April 2021 in Halodoc, Indonesia's largest healthtech platform. The Group also invested in the period in Pickupp, a Hong Kong-based logistics startup.
The Group also remains focussed on making efficiency improvements across its existing businesses to drive future growth, and good progress has been made in a number of businesses, including JEC, Hactl, Jardine Restaurants and Gammon, to implement efficiency measures in areas such as procurement, shared resources and operational efficiency.
Sustainability
The Group and each of its businesses have continued to make encouraging progress in the period in driving their sustainability agendas. Working groups have been established to support each of the pillars of our Group sustainability strategy - shaping social inclusion, leading climate action and driving responsible consumption - and they are developing detailed plans for dealing with key issues, including decarbonisation, climate risk and reducing waste.
Extensive work is also being done to set appropriate metrics and gather data from each of our businesses to enable the Group to measure and report on progress in implementing the sustainability agenda. The Group will report against these metrics for the first time in its 2021 sustainability report.
Our Group businesses are also implementing a Group-wide colleague volunteering programme, which will facilitate participation by colleagues across the Group in a range of social inclusion and other activities. An important first step in this initiative is the launch of a volunteering programme during the summer, with opportunities for colleagues across the Group's Hong Kong businesses to take part in activities supporting causes focussed on mental health, education and livelihood.
People
Ensuring the safety and wellbeing of our people remains a top priority as they face extensive challenges amid the ongoing pandemic. We are offering support to our colleagues at this difficult time, including investing in their continuing development. The Group has also participated in the ongoing drive to encourage take-up of COVID-19 vaccinations in Hong Kong by offering HK$10 million in incentives.
We would like to recognise the remarkable resilience shown by colleagues across the Group and thank all of them for their continuing dedication, hard work and professionalism throughout the period.
Outlook
While there have been some promising signs of an improvement in performance in the first half of the year, COVID-19 continues to cause uncertainty and trading conditions in the second half are expected to continue to be challenging in certain sectors and markets, in particular in Indonesia and other parts of Southeast Asia. The Group is confident, however, that its businesses have the right strategic focus and are taking the actions needed to drive operational performance and to take advantage of emerging opportunities in order to deliver strong, sustainable future growth.
Ben Keswick
Executive Chairman
Operating Review
Hongkong Land
Hongkong Land's underlying profit attributable to shareholders for the first six months of 2021 was US$394 million, up 12% from the equivalent period in 2020 . There was a loss attributable to shareholders of US$865 million after accounting for a net non-cash loss of US$1.3 billion arising on the semi-annual revaluation of investment properties due to lower open market rents. This compares with a loss attributable to shareholders of US$1.8 billion in the first half of 2020, which included a net revaluation loss of US$2.2 billion. The group's financial position remains robust, with a strong balance sheet and liquidity.
The profits of the Development Properties business were higher than the same period last year due to the timing of sales completions on the Chinese mainland.
Market sentiment in the Group's core markets remains stable. At 30th June 2021, the Group had US$3.4 billion in sold but unrecognised contracted sales, compared with US$2.6 billion at the end of 2020. Both sales completions and contracted sales are in line with expectations and are 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, including a site in Nanjing and two sites in Wuhan.
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. During the period, the group secured two new development projects.
In the rest of Southeast Asia, market sentiment remains weak in light of the ongoing impact of COVID-19 and related restrictions.
Contributions from the Investment Properties business remained resilient, despite negative rental reversions in Hong Kong.
The Hong Kong office portfolio continued to perform relatively well amidst the ongoing market downturn. There was a modest increase in new office leasing activity due to improved sentiment and a narrowing rental differential between Central and other parts of the city. Vacancy on a committed basis was slightly lower than at the end of 2020, while office rental reversions were negative.
Trading at the Group's Central retail portfolio benefitted from a modest recovery in luxury retail market sentiment. Temporary rent relief continues to be provided by the group on a case-by-case basis. Singapore vacancy remained unchanged on a committed basis, and average office rents there increased.
Trading at WF CENTRAL in Beijing benefitted from strong luxury retail market sentiment on the Chinese mainland. Construction has started at the West Bund project, and the development is on track.
Astra
Astra reported net profit equivalent to US$615 million under Indonesian reporting standards in the first half, a 61% increase on the same period last year, excluding the gain on the disposal of the interest in Permata Bank. This was principally due to improvements in the performance of its automotive businesses, against the backdrop of an Indonesian economy which remains resilient as a result of high commodity prices.
Net income from Astra's automotive business increased significantly to US$231 million, mainly due to the negative impact on performance in the second quarter of 2020 of the pandemic and related containment measures, and an increase in sales volumes in the first half of 2021 when the business benefitted from temporary luxury car sales tax incentives . The wholesale car market increased by 51% in the first half and Astra's car sales were 50% higher, while its market share was maintained at 53%. T he wholesale market for motorcycles increased by 30%, and Astra's Honda motorcycle sales grew by 29%, with a stable market share. Astra Otoparts reported a net profit of US$19 million compared to a net loss of US$20 million in the same period last year, mainly due to
higher revenues from the original equipment manufacturer and replacement market segments.
Net income from the Financial Services division increased by 2% to US$149 million, due to higher contributions from the consumer finance and general insurance businesses . Consumer finance businesses saw a 13% increase in the amounts financed, while the net income contribution from the car-focused finance companies increased by 3% due to lower loan loss provisioning. The contribution from the motorcycle-focused financing business also increased by 3% due to lower loan loss provisioning. Heavy equipment-focused finance operations saw a 46% increase in the amounts financed, but the net income contribution from this business fell 20%. General insurance company, Asuransi Astra Buana, reported a 15% increase in net income to US$42 million due to higher investment income .
The Heavy Equipment, Mining, Construction and Energy division saw n et income increase by 13 % to US$187 million, mainly due to higher Komatsu heavy equipment sales and improved coal prices . United Tractors reported a 11% increase in net income to US$313 million. Komatsu heavy equipment sales increased by 60%, but parts and service revenues were lower. Mining contracting operations reported 3% lower overburden removal volume, while coal production was marginally higher. Agincourt Resources saw 5% lower gold sales. General contractor Acset Indonusa reported a net loss of US$11 million, mainly due to the slowdown of several ongoing projects and reduced project opportunities during the pandemic .
Net income from Agribusiness increased by 66% to US$36 million, mainly due to improved prices. The group's Infrastructure and Logistics division reported a net profit of US$6 million, compared to a net loss of US$6 million for the same period last year, mainly due to higher toll road revenues. Astra now has 358km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.
Jardine Motors
Jardine Motors saw its underlying net profit for the first half increase to US$154 million from US$61 million in the first half of 2020.
There were higher contributions from all businesses, with Zung Fu on the Chinese mainland seeing a 68% increase in profit to US$49m due to strong demand and solid margins as the market recovered. The business in Hong Kong and Macau contributed a profit of US$9 million, compared to a slight loss last year, due to higher demand and better margins as the market recovered.
The United Kingdom business delivered a substantial improvement in performance from the same period last year, with a profit of US$16 million, compared with a loss of US$28 million last year. The business benefitted from an easing in lockdown measures.
There was a 34% higher contribution of US$80 million from the investment in Zhongsheng, relating to its performance for the six months from July to December 2020.
Jardine Pacific
Jardine Pacific reported an underlying net profit of US$76 million in the first half, compared with US$53 million in the equivalent period in 2020. The group remains resilient and cash-generative and has seen a good recovery in performance in most businesses in the period.
JEC improved its contribution to US$18 million from US$12 million last year, with its Hong Kong engineering units continuing to perform well and most of the regional units delivering higher contributions from improving markets. Jardine Schindler also delivered an improved performance of US$17 million, compared with US$14 million in the same period last year. There was strong existing installation performance, while the new installation market remains very competitive.
The Restaurants business saw better results reported in most banners, partly due to strong delivery sales and partly due to the benefit realised from ongoing process re-engineering projects. Its profit contribution rose to US$18 million from US$15 million last year.
In Transport Services, HACTL's performance was strong, with a profit contribution of US$15 million compared with US$11 million last year, driven by the continuing improvement in the global air cargo industry, which has led to record levels of demand and productivity improvements. There was also a reduced loss from JAS, which benefitted from ongoing operational efficiency initiatives, despite flight volumes remaining low in the period.
Gammon delivered better performance, with a contribution of US$8 million compared with US$3 million in the first half of 2020, due to the softer impact of COVID-19 in Hong Kong. Its order books are at record levels. In June 2021, it was announced that Gammon had been awarded three significant new construction contracts, for an office tower and seven residential towers in Hong Kong.
There was a slightly lower contribution from Greatview, which continued to see volume growth in both the Chinese mainland and international markets but was impacted by both rising raw material costs and higher selling expenses.
Jardine Cycle & Carriage
Jardine Cycle & Carriage reported an underlying profit for the period of US$346 million, a significant improvement on the US$138 million profit it made for the first half of 2020, which saw the emergence of the pandemic and the implementation of major lockdown restrictions in the second quarter. Most of the group's businesses have also seen some improvements in performance compared to previous quarters.
Astra's contribution to underlying profit increased by 71% to US$293 million, with the improvement in its performance primarily driven by its automotive business.
There was a materially higher contribution from Direct Motor Interests of US$24 million, compared to a small loss last year, with the business benefitting mainly from higher profits in its Singapore operations, where car sales grew.
In Indonesia, Tunas Ridean saw improved profits from i ts automotive and financial services businesses, while the financial performance of Cycle & Carriage Bintang in Malaysia benefitted from improved sales due to a sales tax reduction, as well as cost savings initiatives.
Other Strategic Interests contributed a profit of US$66 million compared to US$28 million last year, largely due to the continued recovery of THACO's automotive operations, which saw better sales and higher margins due to an improved sales mix, and its real estate business, which benefitted from a gradual recovery of the market .
The contribution from Siam City Cement was 19% higher than the same period last year, mainly due to higher cement volumes in regional operations, although overall prices remained under pressure. Margins were also impacted by an increase in coal prices, despite continued cost-saving initiatives.
REE's contribution was 72% higher than the same period last year, with improved performances from its power and water investments as a result of favourable hydrography and an increase in REE's solar projects.
JC&C's investment in Vinamilk produced a dividend income of US$11 million, stable from the same period last year.
Dairy Farm
Dairy Farm saw sales of US$4.5 billion for the period by its subsidiaries, 13% lower than the prior year. Underlying profit was US$32 million, 69% lower than the same period last year. The group's Convenience Stores business and Maxim's performed better than in the first half of 2020, but this was not enough to offset lower profits from Grocery Retail, Health and Beauty and IKEA.
The Convenience Stores business reported strong growth in profitability compared with the same period last year, when movement restrictions and physical distancing requirements, together with temporary store closures on the Chinese mainland, impacted performance.
The performance of Maxim's, the group's 50%-owned associate, improved in the first half relative to the same period last year and it reported a smaller loss, with encouraging Hong Kong and Chinese mainland like-for-like sales performance, partially offset by challenging trading conditions in Thailand and Singapore resulting from the surge of COVID-19 cases there in the second quarter.
The profitability of the Grocery Retail business was impacted by lower sales as panic buying behaviour at the start of the pandemic in the first half of last year ceased and consumers adjusted to a different way of life, together with ongoing challenging conditions in the Indonesian business. There were, however, significant underlying improvements to business fundamentals as a result of the implementation of the group's multi-year transformation plan.
Health and Beauty performance in the period was impacted by the prolonged closure of the border between Hong Kong and the Chinese mainland and the consequent lack of business from tourists in Hong Kong. It was also affected by heavy restrictions on movement in Southeast Asia which resulted in a significant reduction in footfall in malls. The group has continued to reinvest in prices to enhance the customer value proposition, leading to an improvement in sales volumes and operating cash flow.
IKEA profits were impacted by pandemic-related trading disruption as IKEA was required to close stores periodically or restrict customer numbers to comply with government policy, particularly in both Indonesia and Taiwan. However, the encouraging performance of e-commerce, combined with a stronger store opening programme, led to higher sales in the Home Furnishings business than in the equivalent period last year.
Dairy Farm incurred a loss in respect of its investment in Yonghui, which saw lower margins resulting from rising competition online and delivered weaker performance than the same period last year when there were very high sales due to panic buying by customers .
Mandarin Oriental
Mandarin Oriental reported a lower underlying loss of US$67 million for the first half of the year, compared with a loss of US$102 million in the equivalent period in 2020.
The group's losses were attributable to its portfolio of owned hotels, while the management business was broadly breakeven due to increased management fees and lower operating costs.
All hotels were operational during the second quarter, whereas almost all hotels were closed in the same period last year. In most markets, demand was largely domestic and leisure-based.
In Asia, demand on the Chinese mainland remained strong, while in South-East Asia, operating conditions generally worsened in the second quarter due to a resurgence in COVID-19 cases and low vaccination levels. In Europe, Middle East and America, Covid-19 restrictions slowly eased, allowing occupancy levels to start to recover.
The group continues to have a strong pipeline of future openings, with 21 new hotels and 13 residences scheduled to open in the next 5 years.
Government financial support in some markets and the group's ongoing cost-containment measures continued to support results.
There was a US$89 million decrease in the valuation of Mandarin Oriental's Causeway Bay site under development as a result of estimated market reductions in property values.
Financial Position
The balance sheet and liquidity of the Group remain strong, as reflected by the strong credit ratings assigned to the Company by the international rating agencies for the first time in the period.
Shareholders' funds were US$27.8 billion at 30th June 2021, compared with US$29.4 billion at 31st December 2020.
Consolidated net debt excluding financial services companies was US$8.1 billion at 30th June 2021, representing gearing of 14%, compared with 6% at 31st December 2020. There was an increase in parent company debt resulting from the completion of the Group simplification in April 2021. The debt incurred in connection with this transaction has since been mostly refinanced through a successful bond issue and the signing of new revolving credit facilities with the Group's relationship banks.
The Group had liquidity of US$13.9 billion as at 30th June 2021, consisting of US$7.6 billion in cash reserves and US$6.3 billion in unused, committed debt facilities.
Jardine Matheson Holdings Limited
Consolidated Profit and Loss
Account
(unaudited)
Six months ended 30th June Year ended 31st December
2021 2020 2020
Underlying Underlying Underlying
business Non-trading business Non-trading business Non-trading
performance items Total performance items Total performance items Total
US$m US$m US$m US$m US$m US$m US$m US$m US$m
Revenue (note 2) 17,492 - 17,492 15,906 - 15,906 32 ,647 - 32 ,647
Net operating costs (note
3) (16,032) (91) (16,123) (14,736) 333 (14,403) (30,310) 458 (29,852)
Change in fair value
of investment properties - (1,323) (1,323) - (2,397) (2,397) - (3,477) (3,477)
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
Operating profit/(loss) 1,460 (1,414) 46 1,170 (2,064) (894) 2 ,337 (3,019) (682)
Net financing charges
* financing charges (291) - (291) (343) - (343) (637) - (637)
* financing income 106 - 106 117 - 117 242 - 242
(185) - (185) (226) - (226) (395) - (395)
Share of results of associates
and joint ventures (note
4)
* before change in fair value of investment properties 458 17 475 225 (57) 168 844 (268) 576
* change in fair value of investment properties - (5) (5) - (135) (135) - (177) (177)
458 12 470 225 (192) 33 844 (445) 399
Profit/(loss) before
tax 1,733 (1,402) 331 1,169 (2,256) (1,087) 2,786 (3,464) (678)
Tax (note 5) (335) (6) (341) (239) 11 (228) (483) (3) (486)
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
Profit/(loss) after tax 1,398 (1,408) (10) 930 (2,245) (1,315) 2,303 (3,467) (1,164)
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
Attributable to:
Shareholders of the Company
(notes 6 & 7) 615 (732) (117) 373 (1,148) (775) 1,085 (1,479) (394)
Non-controlling interests 783 (676) 107 557 (1,097) (540) 1 ,218 (1,988) (770)
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
1,398 (1,408) (10) 930 (2,245) (1,315) 2,303 (3,467) (1,164)
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
US$ US$ US$ US$ US$ US$
Earnings/(loss) per share
(note 6)
- basic 1.86 (0.35) 1.01 (2.09) 2.95 (1.07)
- diluted 1.86 (0.35) 1.01 (2.09) 2.95 (1.07)
-------- -------- ----------- -------- ----------- --------
Jardine Matheson Holdings Limited
Consolidated Statement of Comprehensive
Income
(unaudited) Year ended
Six months ended 31st
30th June December
2021 2020 2020
US$m US$m US$m
Loss for the period (10) (1,315) (1,164)
Other comprehensive income/(expense)
Items that will not be reclassified
to profit or loss:
---------
Remeasurements of defined benefit
plans (5) (1) 6
Tax on items that will not be reclassified 1 (1) (1)
(4) (2) 5
Share of other comprehensive (
expense)/income of associates and
joint ventures (2) (3) 1
-------- --------- ----------
(6) (5) 6
Items that may be reclassified
subsequently to profit or loss:
Net exchange translation differences
-------- --------- ----------
- net (loss)/gain arising during
the period (275) (128) 712
- transfer to profit and loss - 6 (227)
(275) (122) 485
Revaluation of other investments
at fair value
through other comprehensive income
-------- --------- ----------
- net (loss)/ g ain arising during
the period (10) (3) 19
- transfer to profit and loss (2) (3) (4)
(12) (6) 15
Cash flow hedges
-------- --------- ----------
- net gain/( loss) arising during
the period 59 (60) (70)
- transfer to profit and loss 6 4 5
65 (56) (65)
Tax relating to items that may
be reclassified (18) 2 12
Share of other comprehensive (expense)/income
of associates and joint ventures (92) (401) 268
-------- --------- ----------
(332) (583) 715
Other comprehensive (expense)/income
for the period, net of tax (338) (588) 721
-------- --------- ----------
Total comprehensive expense for
the period (348) (1,903) (443)
-------- --------- ----------
Attributable to:
Shareholders of the Company (249) (997) 74
Non-controlling interests (99) (906) (517)
-------- --------- ----------
(348) (1,903) (443)
---------------------------------------------- -------- --------- ----------
Jardine Matheson Holdings Limited
Consolidated Balance Sheet
(unaudited) At 31st
At 30th June December
2021 2020 2020
US$m US$m US$m
Assets
Intangible assets 2,646 2,785 2 ,695
Tangible assets 6,513 6,988 6,862
Right-of-use assets 4,636 5,036 4,768
Investment properties 32,937 39,707 34,273
Bearer plants 486 483 497
Associates and joint ventures 16,582 14,119 16,545
Other investments 2,847 2,582 2,940
Non-current debtors 2,997 3,326 3,032
Deferred tax assets 484 445 485
Pension assets 9 2 11
------ ------------- ---------
Non-current assets 70,137 75,473 72 ,108
------ ------------- ---------
Properties for sale 2,680 2,358 2,339
Stocks and work in progress 2,656 3,277 2,849
Current debtors 6,814 6,769 6 ,753
Current investments 80 40 61
Current tax assets 185 174 158
Bank balances and other liquid
funds
------ ------------- ---------
- non-financial services companies 7,280 7,326 8 ,801
- financial services companies 358 241 402
7,638 7,567 9 ,203
------ ------------- ---------
20,053 20,185 21,363
Asset classified as held for sale 20 - 55
------ ------------- ---------
Current assets 20,073 20,185 21,418
------ ------------- ---------
Total assets 90,210 95,658 93 ,526
------ ------------- ---------
Jardine Matheson Holdings Limited
Consolidated Balance Sheet (continued)
(unaudited) At 31st
At 30th June December
2021 2020 2020
US$m US$m US$m
Equity
Share capital 180 183 181
Share premium and capital reserves 34 32 31
Revenue and other reserves 33,771 33,919 34,457
( 5 ,
Own shares held (6,223) (5,282) 282 )
------- ------------- ---------
Shareholders' funds 27,762 28,852 29,387
Non-controlling interests 28,108 33,433 33,456
------- ------------- ---------
Total equity 55,870 62,285 62,843
------- ------------- ---------
Liabilities
Long-term borrowings
------- ------------- ---------
- non-financial services companies 11,144 8,721 8,576
- financial services companies 1,133 1,426 1,246
12,277 10,147 9,822
Non-current lease liabilities 2,953 3,167 3,040
Deferred tax liabilities 679 728 699
Pension liabilities 517 471 507
Non-current creditors 266 407 366
Non-current provisions 320 306 322
------- ------------- ---------
Non-current liabilities 17,012 15,226 14 ,756
------- ------------- ---------
Current creditors 9,661 10,586 8,645
Current borrowings
------- ------------- ---------
- non-financial services companies 4,211 4,051 3 ,945
- financial services companies 2,054 2,049 1 ,930
6,265 6,100 5 ,875
Current lease liabilities 798 927 850
Current tax liabilities 406 358 368
Current provisions 198 176 189
------- ------------- ---------
Current liabilities 17,328 18,147 15,927
Total liabilities 34,340 33,373 30 ,683
------- ------------- ---------
Total equity and liabilities 90,210 95,658 93 ,526
------- ------------- ---------
Jardine Matheson
Holdings Limited
Consolidated
Statement of
Changes
in Equity
Attributable
to Attributable
Asset Own shareholders to
Share Share Capital Revenue revaluation Hedging Exchange shares of the non-controlling Total
capital premium reserves reserves reserves reserves reserves held Company interests equity
US$m US$m US$m 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 181 - 31 33,497 2,167 (55) (1,152) (5,282) 29,387 33,456 62,843
Total
comprehensive
expense - - - (123) - 20 (146) - (249) (99) (348)
Dividends paid
by the Company
(note 8) - - - (375) - - - - (375) - (375)
Dividends paid
to
non-controlling
interests - - - - - - - - - (453) (453)
Issue of shares - 3 - - - - - - 3 - 3
Employee share
option schemes - - 1 - - - - - 1 - 1
Scrip issued in
lieu of
dividends - - - 112 - - - - 112 - 112
Repurchase of
shares (1) (1) - (229) - - - - (231) - (231)
Acquisition of
the remaining
interest
in Jardine
Strategic - - - 120 - - - (941) (821) (4,751) (5,572)
Change in
interests in
other
subsidiaries - - - (11) - - - - (11) (24) (35)
Change in
interests in
associates
and joint
ventures - - - (54) - - - - (54) (21) (75)
Transfer - 5 (5) 27 - - (27) - - - -
At 30th June
2021 180 7 27 32,964 2,167 (35) (1,325) (6,223) 27,762 28,108 55,870
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- -------
On 8th March 2021, the Company announced a plan to simplify the Group's parent company structure, including
the acquisition for cash of the 15% of Jardine Strategic Holdings Limited's ('Jardine Strategic') issued
share capital that the Company and its wholly-owned subsidiaries did not already own (the 'Acquisition').
The Acquisition was implemented by way of an amalgamation of Jardine Strategic and a wholly-owned subsidiary
of the Company, under the Companies Act 1981 of Bermuda. The total Acquisition value was approximately
US$5.6 billion, of which US$5.4 billion had been settled and reflected in the consolidated cash flow
statement for the six months ended 30th June 2021. The Acquisition was financed by the issuance of a
US$1.2 billion bond on 9th April 2021, new revolving credit facilities and existing cash resources.
The Acquisition was completed on 14th April 2021, following shareholders' approval at the special general
meeting on 12th April 2021. The Acquisition value and the related transaction costs resulted in a reduction
of the Group's total equity.
----------------------------------------------------------------------------------------------------------------------------------------
Jardine Matheson Holdings Limited
Consolidated Statement of Changes in Equity (continued)
Attributable
to Attributable
Asset Own shareholders to
Share Share Capital Revenue revaluation Hedging Exchange shares of the non-controlling Total
capital premium reserves reserves reserves reserves reserves held Company interests equity
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
Six months ended
30th June 2020
(unaudited)
At 1st January
2020 183 - 32 34,903 2,167 (22) (1,630) (5,282) 30,351 34,720 65,071
Total
comprehensive
income - - - (779) - (48) (170) - (997) (906) (1,903)
Dividends paid
by the Company
(note 8) - - - (474) - - - - (474) 83 (391)
Dividends paid
to
non-controlling
interests - - - - - - - - - (439) (439)
Employee share
option schemes - - 1 - - - - - 1 - 1
Scrip issued in
lieu of
dividends 1 (1) - 97 - - - - 97 - 97
Repurchase of
shares (1) - - (126) - - - - (127) - (127)
Subsidiaries
disposed of - - - - - - - - - (14) (14)
Capital
contribution
from
non-controlling
interests - - - - - - - - - 1 1
Change in
interests in
subsidiaries - - - 8 - - - - 8 (8) -
Change in
interests in
associates
and joint
ventures - - - (7) - - - - (7) (4) (11)
Transfer - 1 (1) - - - - - - - -
At 30th June
2020 183 - 32 33,622 2,167 (70) (1,800) (5,282) 28,852 33,433 62,285
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- -------
Year ended 31st
December 2020
At 1st January
2020 1 83 - 32 34 ,903 2,167 (22) (1,630) (5,282) 30,351 34 ,720 65 ,071
Total
comprehensive
income - - - (371) - (33) 478 - 74 (517) (443)
Dividends paid ( 637 ( 637
by the Company - - - ) - - - - ) 111 (526)
Dividends paid
to
non-controlling
interests - - - - - - - - - (840) (840)
Unclaimed
dividends
forfeited - - - 1 - - - - 1 - 1
Issue of shares - 2 - - - - - - 2 - 2
Employee share
option schemes - - 1 - - - - - 1 1 2
Scrip issued in
lieu of
dividends 1 (1) - 134 - - - - 134 - 134
Repurchase of
shares (3) (2) - (549) - - - - (554) - (554)
Subsidiaries
disposed of - - - - - - - - - (13) (13)
Capital
contribution
from
non-controlling
interests - - - - - - - - - 39 39
Change in
interests in
subsidiaries - - - 18 - - - - 18 (45) (27)
Change in
interests in
associates
and joint
ventures - - - (3) - - - - (3) - (3)
Transfer - 1 (2) 1 - - - - - - -
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- -------
At 31st December ( 5 ,
2020 181 - 31 33 ,497 2,167 (55 ) (1,152) 282 ) 29,387 33,456 62,843
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- -------
Jardine Matheson 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
--------- -------- --------------
Cash generated from operations 3,135 2,624 5 ,930
Interest received 91 103 209
Interest and other financing charges
paid (282) (359) (692)
Tax paid (351) (503) (804)
--------- -------- --------------
2,593 1,865 4 ,643
Dividends from associates and joint
ventures 325 131 632
Cash flows from operating activities 2,918 1,996 5 ,275
Investing activities
--------- -------- --------------
Purchase of subsidiaries - (21) (87)
Purchase of associates and joint ventures
(note 10(a)) (276) (151) (206)
Purchase of other investments (note
10(b)) (245) (220) (494)
Purchase of intangible assets (65) (64) (131)
Purchase of tangible assets (298) (338) (659)
Additions to right-of-use assets (19) (23) (37)
Additions to investment properties (note
10(c)) (72) (4,562) (4,660)
Additions to bearer plants (16) (16) (35)
Advance to and repayment to associates
and joint ventures (note 10(d)) (223) (139) (725)
Advance from and repayment from associates
and joint ventures (note 10(e)) 432 340 1,437
Advance received on conditional sale
of a subsidiary in Hongkong Land (note
10(c)) - 2,252 -
Sale of subsidiaries - 48 2,821
Sale of associates and joint ventures
(note 10(f)) - 1,138 1,138
Sale of other investments (note 10(g)) 203 188 445
Sale of intangible assets - 1 1
Sale of tangible assets 62 29 47
Sale of investment properties - 11 11
Cash flows from investing activities (517) (1,527) (1,134)
Financing activities
--------- -------- --------------
Issue of shares 3 - 2
Capital contribution from non-controlling
interests - 1 39
Acquisition of the remaining interest
in Jardine Strategic (5,447) - -
Change in interests in other subsidiaries (35) - (27)
Purchase of own shares (236) (127) (549)
Drawdown of borrowings 8,953 4,729 7,967
Repayment of borrowings (6,008) (3,581) (7,557)
Principal elements of lease payments (436) (498) (962)
Dividends paid by the Company (263) (294) (392)
Dividends paid to non-controlling interests (446) (289) (840)
Cash flows from financing activities (3,915) (59) (2,319)
--------- -------- --------------
Net (decrease)/increase in cash and
cash equivalents (1,514) 410 1,822
Cash and cash equivalents at beginning
of period 9,153 7,157 7 ,157
Effect of exchange rate changes (68) (33) 174
--------- -------- --------------
Cash and cash equivalents at end of
period 7,571 7,534 9 ,153
--------- -------- --------------
Jardine Matheson Holdings Limited
Analysis of Profit Contribution
(unaudited)
Six months ended Year ended
30th June 31st December
2021 2020 2020
US$m US$m US$m
Reportable segments
Jardine Pacific 76 53 182
Jardine Motors 154 61 214
Hongkong Land 184 151 412
Dairy Farm 25 69 181
Mandarin Oriental (47) (67) (138)
Jardine Cycle & Carriage 56 1 64
Astra 203 109 197
-------- --------- --------------
651 377 1,112
Corporate and other interests (36) (4) (27)
-------- --------- --------------
Underlying profit attributable
to shareholders* 615 373 1,085
De crease in fair value of investment
properties (691) (1,155) (1,424)
Other non-trading items (41) 7 (55)
-------- --------- --------------
Loss attributable to shareholders (117) (775) (394)
-------- --------- --------------
Analysis of Jardine Pacific's contribution
Jardine Schindler 17 14 32
JEC 18 12 51
Gammon 8 3 38
Jardine Restaurants 18 15 32
Transport Services 15 5 24
Corporate and other interests - 4 5
-------- --------- --------------
76 53 182
-------- --------- --------------
Analysis of Jardine Motors' contribution
Hong Kong and Chinese mainland 138 89 226
United Kingdom 16 (28) (12)
-------- --------- --------------
154 61 214
-------- --------- --------------
* Underlying profit attributable to shareholders is the measure of profit adopted by the Group in accordance with IFRS 8 'Operating Segments'.
__________________________________________________________________________________________
Jardine Matheson 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.
COVID-19 Related Rent Concessions beyond 30th June 2021: Amendment to IFRS 16 Leases (effective 1st April 2021)
The Group adopted and applied the practical expedient of the Covid-19 Related Rent Concessions: Amendment to IFRS 16 Leases, published in June 2020 ('2020 amendment'), in the 2020 annual financial statements. The 2021 amendment extends the practical expedient in the 2020 amendment to eligible lease payments due on or before 30th June 2022. By using the 2021 amendment, the Group continues to apply the practical expedient consistently to all lease contracts with similar characteristics and in similar circumstances, and does not assess these concessions as lease modifications.
2. Revenue
Jardine
Jardine Jardine Hongkong Dairy Mandarin Cycle Intersegment
&
Pacific Motors Land Farm Oriental Carriage Astra transactions Group
US$m US$m US$m US$m US$m US$m US$m US$m US$m
------- ------- -------- ------ -------- -------- ------- ------------ -------
Six months
ended
30th June
2021
By product
and service:
Property 2 - 886 - - - 24 (5) 907
Motor
vehicles - 3,042 - - - 803 2,989 (6) 6,828
Retail and
restaurants 427 - - 4,537 - - - - 4,964
Financial
services - - - - - - 839 - 839
Engineering,
heavy
equipment,
mining
and
construction 239 - - - - - 2,593 (19) 2,813
Hotels - - - - 102 - - - 102
Other - - - - - - 1,039 - 1,039
------- ------- -------- ------ -------- -------- ------- ------------ -------
668 3,042 886 4,537 102 803 7,484 (30) 17,492
------- ------- -------- ------ -------- -------- ------- ------------ -------
Revenue from
contracts
with
customers:
------- ------- -------- ------ -------- -------- ------- ------------ -------
Recognised at
a
point in
time 458 3,040 46 4,537 37 770 6,433 (6) 15,315
Recognised
over
time 208 2 287 - 55 32 109 (19) 674
666 3,042 333 4,537 92 802 6,542 (25) 15,989
Revenue from
other
sources:
------- ------- -------- ------ -------- -------- ------- ------------ -------
Rental income
from
investment
properties 2 - 470 - - - 6 (5) 473
Revenue from
financial
services
companies - - - - - - 839 - 839
Other - - 83 - 10 1 97 - 191
2 - 553 - 10 1 942 (5) 1,503
------- ------- -------- ------ -------- -------- ------- ------------ -------
668 3,042 886 4,537 102 803 7,484 (30) 17,492
------- ------- -------- ------ -------- -------- ------- ------------ -------
Six months
ended
30th June
2020
By product
and service:
Property 2 - 820 - - - 37 (5) 854
Motor
vehicles - 2,127 - - - 514 2,169 (6) 4,804
Retail and
restaurants 401 - - 5,240 - - - - 5,641
Financial
services - - - - - - 716 - 716
Engineering,
heavy
equipment,
mining
and
construction 270 - - - - - 2,245 (20) 2,495
Hotels - - - - 96 - - - 96
Other 387 - - - - - 913 - 1,300
------- ------- -------- ------ -------- -------- ------- ------------ -------
1,060 2,127 820 5,240 96 514 6,080 (31) 15,906
------- ------- -------- ------ -------- -------- ------- ------------ -------
Revenue from
contracts
with
customers:
------- ------- -------- ------ -------- -------- ------- ------------ -------
Recognised at
a
point in
time 822 2,126 102 5,240 38 487 5,147 (6) 13,956
Recognised
over
time 236 1 184 - 50 27 123 (20) 601
1,058 2,127 286 5,240 88 514 5,270 (26) 14,557
Revenue from
other
sources:
------- ------- -------- ------ -------- -------- ------- ------------ -------
Rental income
from
investment
properties 2 - 466 - - - 5 (5) 468
Revenue from
financial
services
companies - - - - - - 713 - 713
Other - - 68 - 8 - 92 - 168
2 - 534 - 8 - 810 (5) 1,349
------- ------- -------- ------ -------- -------- ------- ------------ -------
1,060 2,127 820 5,240 96 514 6,080 (31) 15,906
------- ------- -------- ------ -------- -------- ------- ------------ -------
Gross revenue, comprises revenue together with 100% of revenue from associates and joint ventures, are analysed as follows:
Six months ended 30th June
2021 2020
US$m US$m
By business:
Jardine Pacific 2,615 3,032
Jardine Motors 16,110 11,777
Hongkong Land 2,410 1,443
Dairy Farm 13,950 14,547
Mandarin Oriental 168 167
Jardine Cycle & Carriage 3,253 3,039
Astra 14,114 11,049
Intersegment transactions (132) (118)
------ ------
52,488 44,936
------ ------
3. Net Operating Costs
Six months ended 30th June
2021 2020
US$m US$m
Cost of sales (13,210) (11,851)
Other operating income 282 774
Selling and distribution costs (1,970) (2,101)
Administration expenses (1,092) (1,081)
Other operating expenses (133) (144)
--------- --------
(16,123) (14,403)
--------- --------
In relation to the COVID-19 pandemic, the Group had received
government grants and rent concessions of US$34 million
(2020: US$76 million) and US$26 million (2020: US$35 million),
respectively, for the six months ended 30th June 2021. These
subsidies were accounted for as other operating income.
Net operating costs included the following
gains/(losses) from non-trading items:
Change in fair value of other investments (56) (91)
Sale of businesses - 417
Sale of property interests - 10
Restructuring of businesses (35) -
Other - (3)
(91) 333
--------- --------
4. Share of Results of Associates and Joint Ventures
Six months ended 30th June
2021 2020
US$m US$m
By business:
Jardine Pacific 49 (35)
Jardine Motors 93 70
Hongkong Land 115 (90)
Dairy Farm (28) 16
Mandarin Oriental (15) (14)
Jardine Cycle & Carriage 62 17
Astra 202 74
Corporate (8) (5)
----- -----
470 33
----- -----
Share of results of associates and joint
ventures included the following gains/(losses)
from non-trading items:
Change in fair value of investment properties (4) (135)
Change in fair value of other investments 29 12
Asset impairment (14) (67)
Other 1 (2)
12 (192)
----- -----
Results are shown after tax and non-controlling interests in the associates and joint ventures.
In relation to the COVID-19 pandemic, included in share of results of associates and joint ventures were the Group's share of the government grants and rent concessions of US$13 million (2020: US$31 million) and US$10 million (2020: US$17 million), respectively, for the six months ended 30th June 2021.
5. Tax
Six months ended 30th June
2021 2020
US$m US$m
Tax charged to profit and loss is analysed
as follows:
Current tax (379) (270)
Deferred tax 38 42
----- -----
(341) (228)
----- -----
China (106) (74)
Southeast Asia (220) (150)
United Kingdom (4) 5
Rest of the world (11) (9)
----- -----
(341) (228)
----- -----
Tax relating to components of other comprehensive
income or expense is analysed as follows:
Remeasurements of defined benefit plans 1 (1)
Cash flow hedges (18) 2
(17) 1
----- -----
Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.
Share of tax charge of associates and joint ventures of US$160 million (2020: US$99 million) is included in share of results of associates and joint ventures. Share of tax charge of US$8 million (2020: tax credit of US$19 million) is included in other comprehensive income of associates and joint ventures.
6. Earnings/(Loss) per Share
Basic loss per share are calculated on loss attributable to shareholders of US$117 million (2020: US$775 million) and on the weighted average number of 331 million (2020: 371 million) shares in issue during the period.
Diluted loss per share are calculated on loss attributable to shareholders of US$117 million (2020: US$775 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiaries and on the weighted average number of 331 million (2020: 371 million) shares in issue during the period.
The weighted average number of shares is arrived at as follows:
Ordinary shares
in millions
2021 2020
Weighted average number of shares in issue 721 733
Company's share of shares held by subsidiaries (390) (362)
------------ ------------
Weighted average number of shares for
basic earnings
per share calculation 331 371
Adjustment for shares deemed to be issued
for no consideration under the Senior
Executive Share
Incentive Schemes - -
------------ ------------
Weighted average number of shares for
diluted earnings per share calculation 331 371
------------ ------------
Additional basic and diluted earnings per share are also calculated based on underlying profit attributable to shareholders. A reconciliation of earnings is set out below:
Six months ended 30th June
2021 2020
Basic Diluted Basic Diluted
(loss)/ (loss)/ (loss)/ (loss)/
earnings earnings earnings earnings
per share per share per share per share
US$m US$ US$ US$m US$ US$
Loss attributable to
shareholders (117) (0.35) (0.35) (775) (2.09) (2.09)
Non-trading items (note
7) 732 1,148
----- ------
Underlying profit
attributable
to shareholders 615 1.86 1.86 373 1.01 1.01
----- ------
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 and on equity investments which are measured at fair value through profit and loss; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets, associates and joint ventures and other investments; provisions for the closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.
Six months ended 30th June
2021 2020
US$m US$m
By business:
Jardine Pacific 16 (49)
Hongkong Land (635) (933)
Dairy Farm (12) 7
Mandarin Oriental (71) (222)
Jardine Cycle & Carriage (84) (15)
Astra 2 119
Corporate and other interests 52 (55)
(732) (1,148)
----- -------
An analysis of non-trading items after
interest, tax and non-controlling interests
is set out below:
Change in fair value of investment properties
----- -------
- Hongkong Land (635) (933)
- other (56) (222)
----- -------
(691) (1,155)
Change in fair value of other investments (1) (63)
Asset impairment (11) (57)
Sale of businesses - 119
Sale of property interests - 10
Restructuring of businesses (25) -
Other (4) (2)
(732) (1,148)
----- -------
8. Dividends
Six months ended 30th June
2021 2020
US$m US$m
Final dividend in respect of 2020 of USc128.00
(2019: USc1 28 .00) per share 921 938
Company's share of dividends paid on the
shares held by subsidiaries (546) (464)
----- -----
375 474
----- -----
An interim dividend in respect of 2021 of USc44.00 (2020: USc44.00) per share amounting to a total of US$318 million (2020: US$322 million) is declared by the Board. The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiaries of US$188 million (2020: US$159 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2021.
9. Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2021 and 31st December 2020 are as follows:
Fair
value Fair value Financial
through through assets
Fair value profit other at Other Total
of hedging and comprehensive amortised financial carrying Fair
instruments loss income costs liabilities amount value
US$m US$m US$m US$m US$m US$m US$m
30th June 2021
Financial assets
measured at
fair value
Other investments
* equity investments - 2,145 - - - 2,145 2,145
* debt investments - - 729 - - 729 729
* LP investment funds - 53 - - - 53 53
Derivative financial
instruments 58 - - - - 58 58
----------- -------
58 2,198 729 - - 2,985 2,985
----------- ------- ------------- ----------- ----------- -------- --------
Financial assets
not measured at
fair value
Debtors - - - 7,904 - 7,904 7,938
Bank balances - - - 7,638 - 7,638 7,638
----------- ------- ------------- ----------- ----------- -------- --------
- - - 15,542 - 15,542 15,576
----------- ------- ------------- ----------- ----------- -------- --------
Financial liabilities
measured at
fair value
Derivative financial
instruments (81) - - - - (81) (81)
Contingent consideration
payable - (9) - - - (9) (9)
----------- ------- ------------- ----------- ----------- -------- --------
(81) (9) - - - (90) (90)
----------- ------- ------------- ----------- ----------- -------- --------
Financial liabilities
not measured at
fair value
Borrowings - - - - (18,542) (18,542) (18,625)
Lease liabilities - - - - (3,751) (3,751) (3,751)
Trade and other
payable excluding
non-financial
liabilities - - - - (6,733) (6,733) (6,733)
----------- ------- ------------- ----------- ----------- -------- --------
- - - - (29,026) (29,026) (29,109)
----------- ------- ------------- ----------- ----------- -------- --------
Financial instruments by category
Fair
value Fair value Financial
through through assets
Fair value profit other at Other Total
of hedging and comprehensive amortised financial carrying Fair
instruments loss income costs liabilities amount value
US$m US$m US$m US$m US$m US$m US$m
31st December
2020
Financial assets
measured at
fair value
Other investments
* equity investments - 2,278 - - - 2,278 2,278
* debt investments - - 698 - - 698 698
* LP investment funds - 25 - - - 25 25
Derivative financial
instruments 46 - - - - 46 46
----------- -------
46 2,303 698 - - 3,047 3,047
----------- ------- ------------- ----------- ----------- -------- --------
Financial assets
not measured at
fair value
Debtors - - - 7,705 - 7,705 7,918
Bank balances - - - 9,203 - 9,203 9,203
----------- ------- ------------- ----------- ----------- -------- --------
- - - 16,908 - 16,908 17,121
----------- ------- ------------- ----------- ----------- -------- --------
Financial liabilities
measured at
fair value
Derivative financial
instruments (209) - - - - (209) (209)
Contingent consideration
payable - (9) - - - (9) (9)
----------- ------- ------------- ----------- ----------- -------- --------
(209) (9) - - - (218) (218)
----------- ------- ------------- ----------- ----------- -------- --------
Financial liabilities
not measured at
fair value
Borrowings - - - - (15,697) (15,697) (16,018)
L ease liabilities - - - - (3,890) (3,890) (3,885)
Trade and other
payable excluding
non-financial
liabilities - - - - (6,320) (6,320) (6,320)
----------- ------- ------------- ----------- ----------- -------- --------
- - - - (25,907) (25,907) (26,223)
----------- ------- ------------- ----------- ----------- -------- --------
Fair value estimation
(i) Financial instruments that are measured at fair value
For financial instruments that are measured at fair value
in the balance sheet, the corresponding fair value measurements
are disclosed by level of the following fair value measurement
hierarchy:
(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities ('quoted prices in active
markets')
The fair values of listed securities and bonds are based on quoted prices in active markets at the balance
sheet date. The quoted market price used for listed investments
held by the Group is the current bid price.
(b) Inputs other than quoted prices in active markets that are observable for the asset or liability, either
directly or indirectly ('observable current market transactions')
The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at
the balance sheet date. The rates for interest rate
swaps and caps, cross-currency swaps and forward foreign exchange contracts are calculated by reference to
market interest rates and foreign exchange rates.
The fair values of unlisted investments mainly include club and school debentures, are determined using prices
quoted by brokers at the balance sheet date.
(c) Inputs for assets or liabilities that are not based on observable market data ('unobservable inputs')
The fair values of other unlisted equity investments and LP investment funds are determined using valuation
techniques by reference to observable current market
transactions (including price-to earnings and price-to book ratios of listed securities of entities engaged in
similar industries) or the market prices of the underlying
investments with certain degree of entity specific estimates or discounted cash flow by projecting the cash
inflows from these investments.
There were no changes in valuation techniques during the six months ended 30th June 2021 and the year ended 31st December 2020.
The table below analyses financial instruments carried at fair value at 30th June 2021 and
31st December 2020, by the levels in the fair value measurement hierarchy:
Quoted Observable
prices current
in active market Unobservable
markets transactions inputs Total
US$m US$m US$m US$m
30th June 2021
Assets
Other investments
--------- ------------ ------------ -----
- equity investments 1,711 51 383 2,145
- debt investments 729 - - 729
- LP investment funds - - 53 53
2,440 51 436 2,927
Derivative financial instruments
at
fair value
* through other comprehensive income - 39 - 39
* through profit and loss - 19 - 19
2,440 109 436 2,985
--------- ------------ ------------ -----
Liabilities
Contingent consideration
payable - - (9) (9)
Derivative financial instruments
at
fair value
* through other comprehensive income - (81) - (81)
- (81) (9) (90)
--------- ------------ ------------ -----
31st December 2020
Assets
Other investments
--------- ------------ ------------ -----
- equity investments 1,873 51 354 2,278
- debt investments 698 - - 698
- LP investment funds - - 25 25
2,571 51 379 3,001
Derivative financial instruments
at
fair value
- through other comprehensive
income - 22 - 22
* through profit and loss - 24 - 24
2,571 97 379 3,047
--------- ------------ ------------ -----
Liabilities
Contingent consideration
payable - - (9) (9)
Derivative financial instruments
at
fair value
* through other comprehensive income - (209) - (209)
- (209) (9) (218)
--------- ------------ ------------ -----
There were no transfers among the three categories during the six months ended 30th June 2021 and the year ended 31st December 2020.
Movement of financial instruments which are valued based on unobservable inputs during the six months ended 30th June 2021 and year ended 31st December 2020 are as follows:
Unlisted
equity
investments
US$m
At 1st January 2020 361
Exchange differences (4)
Additions 15
Net change in fair value during the year included
in profit and loss 7
------------
At 31st December 2020 and 1st January
2021 379
Exchange differences (9)
Additions 63
Net change in fair value during the period included
in profit and loss 3
------------
At 30th June 2021 436
------------
(ii) Financial instruments that are not measured at fair value
The fair values of current debtors, bank balances and other liquid funds, current creditors, current
borrowings and current lease liabilities 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. The fair values of non-current lease liabilities are estimated using the expected future payments discounted at market interest rates.
10. Notes to Consolidated Cash Flow Statement
(a) Purchase of associates and joint ventures for the six months ended 30th June 2021 and 2020 mainly included
US$249 million and US$127 million, respectively, for Hongkong Land's
investment on the Chinese mainland.
(b) Purchase of other investments for the six months ended 30th June 2021 and 2020 mainly included Astra's
acquisition of securities.
(c) Additions to investment properties for the six months ended 30th June 2020 primarily included US$4.5 billion
for Hongkong Land's acquisition of a mixed-use site in the Xuhui District
in Shanghai, Chinese mainland. Hongkong Land had conditionally finalised agreements with two partners to
jointly develop the site and received an advance of US$2.3 billion in the
first half of 2020.
(d) Advance to and repayment to associates and joint ventures for the six months ended 30th June 2021 included
US$216 million for Hongkong Land's advance to its property joint ventures
and US$7 million for Mandarin Oriental's advance to its associate and
jointventure hotels.
Advance for the six months ended 30th June 2020 included US$116 million for Hongkong Land's advance to its
property joint ventures and US$23 million for Mandarin Oriental's advance
to its associate and joint venture hotels.
(e) Advance from and repayment from associates and joint ventures for the six months ended 30th June 2021 and 2020
mainly included advance from and repayment from Hongkong Land's joint
ventures.
(f) Sale associates and joint ventures for the six months ended 30th June 2020 mainly included US$1,136 million for
Astra's sale of its entire 44.6% interest in Permata Bank.
(g) Sale of other investments for the six months ended 30th June 2021 comprised sale of securities of US$132
million and US$71 million, respectively, in Astra and Corporate.
Sale for the six months ended 30th June 2020 mainly included Astra's sale of securities.
11. Capital Commitments and Contingent Liabilities
Total capital commitments at 30th June 2021 and 31st December 2020 amounted to US$2,856 million and US$2,698 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.
12. Related Party Transactions
In the normal course of business the Group undertakes a variety of transactions with certain of its associates and joint ventures.
The most significant of such transactions relate to the purchases of motor vehicles and spare parts from the Group's associates and joint ventures in Indonesia including PT Toyota-Astra Motor, PT Astra Honda Motor and PT Astra Daihatsu Motor. Total cost of motor vehicles and spare parts purchased for the six months ended 30th June 2021 amounted to US$2,198 million (2020: US$1,550 million). The Group also sells motor vehicles and spare parts to its associates and joint ventures in Indonesia including PT Astra Honda Motor, PT Astra Daihatsu Motor and PT Tunas Ridean. Total revenue from sales of motor vehicles and spare parts for the six months ended 30th June 2021 amounted to US$271 million (2020: US$187 million).
There were no other related party transactions that might be considered to have a material effect on the financial position or performance of the Group that were entered into or changed during the first six months of the current financial year.
Amounts of outstanding balances with associates and joint ventures are included in debtors and creditors, as appropriate.
13. Post Balance Sheet Event
On 1st July 2021, the Group announced that an agreement has reached with its associate, Zhongsheng Group Holdings Limited ("Zhongsheng"), whereby the Group will transfer to Zhongsheng its entire interest in Mercedes-Benz auto dealership business operating on the Chinese mainland under the Zung Fu brand. The total consideration of this transaction is US$1.3 billion which will be settled by Zhongsheng in both cash and new Zhongsheng shares, increasing the Group's shareholding in Zhongsheng upon closing of the transaction.
Completion of the transaction is subject to certain conditions, including consent by Mercedes-Benz, approval by shareholders of Zhongsheng as well as relevant regulators on the Chinese mainland.
Jardine Matheson 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 relevant in the second half of the year.
-- Economic Risk
-- Commercial Risk and Financial Risk
-- Concessions, Franchises and Key Contracts
-- Regulatory and Political Risk
-- Terrorism, Pandemic and Natural Disasters
-- Cybersecurity Risk
For greater detail, please refer to page 162 of the Company's 2020 Annual Report, a copy of which is available on the Company's website at www.jardines.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 of the United Kingdom.
For and on behalf of the Board
John Witt
Graham Baker
Directors
Dividend Information for Shareholders
The interim dividend of USc 44.00 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. The dividend will be available in cash with a scrip alternative.
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.
Dividend Information for Shareholders (continued)
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')
For those shareholders who are on CDP's DCS, they 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
For those shareholders who are not on CDP's DCS, they 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.
The Jardine Matheson Group
Jardine Matheson is a diversified Asian-based group with unsurpassed experience in the region, having been founded in China in 1832. It has a broad portfolio of market-leading businesses, which represent a combination of cash generating activities and long-term property assets and are closely aligned to the increasingly prosperous consumers of the region. The Group's businesses aim to produce sustainable returns by providing their customers with high quality products and services.
Jardine Matheson operates principally in China and Southeast Asia, where its subsidiaries and affiliates benefit from the support of the Group's extensive knowledge of the region and its long-standing relationships. These companies are active in the fields of motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, transport services, restaurants, luxury hotels, financial services, heavy equipment, mining and agribusiness.
Jardine Matheson holds interests in Jardine Pacific (100%), Jardine Motors (100%), Hongkong Land (50%), Dairy Farm (78%), Mandarin Oriental (79%) and Jardine Cycle & Carriage (75%) ('JC&C'). JC&C in turn has a 50% shareholding in Astra.
Jardine Matheson Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. Jardine Matheson Limited operates from Hong Kong and provides management services to Group companies.
- end -
For further information, please contact:
Jardine Matheson Limited Matthew Bishop (852) 2843 8266 Brunswick Group Limited Sunitha Chalam (852) 3512 5050
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.jardines.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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July 29, 2021 07:08 ET (11:08 GMT)
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