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Jardine Strategic (JDS)

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Thursday 30 July, 2020

Jardine Strategic

Half-year Report

RNS Number : 6053U
Jardine Strategic Hldgs Ltd
30 July 2020
 

To:  Business Editor  

 

 

  30th July 2020

  For immediate release

 

 

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

 

Jardine Strategic Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2020

 

Challenging first half, strong balance sheet and solid mid-term prospects

Highlights

· All businesses faced challenging market conditions

· Underlying profit of US$395 million for the period to 30th June 2020, down 49% against prior year

· Some signs of business recovery in second quarter, but the outlook remains uncertain

· Group's balance sheet and funding position remain strong

· Interim dividend declared of US10.50 per share, unchanged from the same period in 2019

 

"As expected, COVID-19 had a significant impact on the Group's results in the first half, with Southeast Asia particularly affected.  It is expected that the pandemic will continue to create uncertainty and volatility in the second half, making it difficult to predict full year performance. 

 

On behalf of the Board, I would like to thank all my colleagues across the Group for their continuing dedication, hard work and professionalism during such challenging times.

 

The Group has a strong balance sheet and liquidity position and will remain vigilant for value-adding opportunities should they arise, despite the uncertain near-term outlook."

 

Ben Keswick, Executive Chairman

 

Results

  (unaudited)

Six months ended 30th June

 

 

 

2020

US$m

2019

US$m

  Change

%

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

 

44,936

 50,274

   11

Revenue

12,748

15,999

  −20

Underlying profit* attributable to shareholders

395

779

−49

(Loss)/profit attributable to shareholders

(961)

1,657

n/a

 

US$

US$

%

Underlying earnings per share*

0.71

1.38

49

(Loss)/earnings per share

(1.72)

2.93

n/a

Net asset value per share#

48.71

57.98

16

 

US¢

US¢

%

Interim dividend per share

10.50

  10.50

-

*  The Group uses 'underlying profit' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in note 9 to the condensed financial statements.  Management considers this to be a key measure which provides additional information to enhance understanding of the Group's underlying business performance.

#  At 30th June 2020 and 31st December 2019, respectively.  Net asset value per share is calculated on a market value basis, details of which are set out in note 15 to the condensed financial statements.

 

The interim dividend of US¢10.50 per share will be payable on 14th October 2020 to shareholders on the register of members at the close of business on 21st August 2020 and will be available in cash with a scrip alternative.

Jardine Strategic Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2020

 

Chairman's Statement

Overview

 

The Group's performance and profitability in the first half were significantly impacted by COVID-19 and the restrictions imposed to contain it.  Greater China was mainly affected in the first quarter, while Southeast Asia felt the impact of the pandemic increasingly in the second quarter.

 

With the notable exception of Mandarin Oriental, the Group's major businesses remained profitable in the first half, although at materially lower levels than the same period last year.  While there were some signs of recovery in certain of the Group's businesses in the second quarter (including the Group's property development and motors businesses on the Chinese mainland), the possibility of further waves of the pandemic makes it difficult to predict performance in the second half. 

 

Jardines remains resilient and well-positioned to achieve its long-term growth objectives, reflecting the diversity of the Group's businesses, the strength of their underlying business models and the Group's clear strategic aims. 

 

The Group also remains focussed on addressing changes in customer behaviours, some of which may be permanent, and the need for each of its businesses to adapt and align to new situations resulting from COVID-19.  The pandemic has further accelerated change and disruption in our markets, and our people and businesses are aiming to respond with speed and agility.

 

The balance sheet and liquidity of the Group remain robust.  Across the Group, extensive actions continue to be taken to manage costs and preserve cash, including operational improvements to ensure the long-term resilience of the business.  The Group also has access to substantial undrawn liquidity from committed lending facilities. 

 

Results

 

The Group's underlying profit for the first six months of 2020 was US$395 million, US$384 million, or 49%, below the corresponding period last year, and underlying earnings per share were down 49% at US$0.71.  The revenue of the Group for the period was 20% lower at US$12.7 billion, while revenue, including 100% of Jardine Matheson, associates and joint ventures, was down 11% at US$44.9 billion.

 

Within Jardine Matheson's directly-held businesses, Jardine Pacific's performance was slightly down overall compared with the same period last year and it remains a resilient, cash-generative group of businesses.  HACTL performed strongly, while the contributions from JEC and Jardine Restaurants were solid.  Jardine Schindler and Gammon delivered weaker performances, and the contribution from Aviation Services was significantly lower due to the challenges facing the aviation sector. 

 

Jardine Motors saw its results fall, with the UK business materially impacted by lockdown measures and a weaker performance from Zung Fu on the Chinese mainland and in Hong Kong in the first quarter.  There was, however, a higher contribution in the period from the investment in Zhongsheng, relating to its performance for the six months from July to December 2019.

 

Hongkong Land's office portfolio remained resilient in Hong Kong and Singapore, but the provision of rent relief to tenants negatively impacted Hong Kong retail profit.  Profit from Development Properties was lower in all the group's markets due to fewer scheduled completions in the period. 

 

Dairy Farm saw its overall profits fall significantly due to reduced contributions from Health & Beauty, Maxim's and Convenience Stores, all of which have been impacted by the severe decline in tourism and pandemic-related restrictions.  There were, however, strong performances from the group's Grocery Retail operations and Home Furnishings business.

 

Mandarin Oriental recorded a significant loss in the first half of the year, as the majority of the group's hotels were closed throughout the second quarter.

 

In Southeast Asia, Astra's performance was significantly weaker in the period, with lower contributions from automotive, financial services and heavy equipment and mining, and Jardine Cycle & Carriage ('JC&C') also saw reduced contributions from Thaco and its Motor businesses, which experienced declines in all markets due to the temporary closure of operations.

 

The Group recorded a non-trading net loss in the first half of US$1,356 million, compared with a non-trading net gain of US$878 million in the first half of 2019.  This was as a result of the biannual revaluations of investment properties in Hongkong Land - which produced a net revaluation loss of US$1,099 million as values were suppressed due to lower open market rents - and The Excelsior site, which led to a US$261 million revaluation loss.  In the first half of 2019, a US$2.3 billion gain was recognised in the asset revaluation reserves when the site was reclassified as a commercial investment property.  The Group recorded a loss attributable to shareholders for the period of US$961 million, compared with a profit of US$1,657 million in 2019. 

 

Financial Position

 

The balance sheet and liquidity of the Group remain strong.  Across the Group, extensive actions continue to be taken to manage costs, preserve cash and increase liquidity, including the reduction, suspension or deferral of non-essential operating and capital expenditure.

 

Shareholders' funds were US$34.4 billion at 30th June 2020, compared with US$35.8 billion at 31st December 2019.  Consolidated net debt excluding financial services companies was US$6.1 billion at 30th June 2020, representing gearing of 10%, compared with 9% at 31st December 2019.  The Group had liquidity of US$12.7 billion, consisting of US$6.8 billion in cash reserves and US$5.9 billion in unused, committed debt facilities.

 

Dividend

 

The Board has declared an interim dividend of US¢10.50 per share, in line with last year.  The Board will review the final dividend for the year at the end of the second half.

 

Business Developments

 

Planning of Hongkong Land's prime mixed-use site in the West Bund area of Shanghai is underway, with completion expected in multiple phases through to 2027.  Subject to relevant approvals by the authorities, the group has conditionally reached agreements with two strategic partners to jointly develop the site and received a prepayment of US$2.3 billion in the first half, with a further amount of US$320 million received in July.  The land premium and related costs of US$4.5 billion were paid in the first half.

 

Dairy Farm's multi-year programme to reshape and reorganise the business, adapting to the changing needs of customers, has never been more relevant and continued to progress during the first half of the year, despite the impact of the pandemic. 

 

This week's launch of Yuu, expected to become Hong Kong's largest loyalty programme, is an important milestone in Dairy Farm's drive to modernise its business and achieve a digital transformation of the group.  The Yuu programme will be a key enabler of Dairy Farm's objective of adopting a more customer-centric approach across all its banners and driving enhanced levels of consumer engagement.  The divestment of Wellcome Taiwan is expected to complete by the end of the year.

 

Mandarin Oriental signed one new management contract in the period, for a hotel and residences in Vienna, which are scheduled to open in 2023. 

 

In May 2020, Astra completed the sale of its 44.56% stake in Permata Bank for net consideration of US$1.1 billion.  The disposal, which followed the sale of Jardine Matheson's interest in Jardine Lloyd Thompson in 2019, has further reduced our exposure to a high risk sector, realised a significant gain for the Group and helped ensure that the business remains well-capitalised at both the Astra and Jardine Matheson levels.

 

People

 

Ensuring the safety and wellbeing of employees during the pandemic is a top priority and the Group's businesses have adopted a range of appropriate health and safety measures. 

 

Support from governments in a number of our key markets has helped maintain employment. We would like to thank all our colleagues for their continuing dedication, hard work and professionalism during this challenging time.

 

As planned and announced earlier in the year, I stepped down as Group Managing Director on 15th June 2020 and was succeeded by John Witt, formerly Chief Financial Officer.  Graham Baker was appointed as Chief Financial Officer with effect from 15th June 2020.  I will continue as Group Chairman and look forward to working with John, Graham and the wider leadership team in the coming years. 

 

Outlook

 

The pandemic continues to create uncertainty and volatility and trading conditions in the second half are expected to continue to be challenging.  While there were some signs of recovery in certain of the Group's businesses in the second quarter, the possibility of further waves of the pandemic make it difficult to predict performance in the second half.

 

The Group is focussed both on driving operational performance across its businesses and on identifying and taking the potential opportunities which are emerging from the pandemic to drive future growth.  The Group's strong balance sheet, long-term perspective and liquidity will position it well to take advantage of these opportunities as they arise.

 

 

 

Ben Keswick

ExecutiveChairman

 

Operating Review

 

Jardine Pacific

 

Jardine Pacific reported an underlying net profit of US$53 million in the first half, compared with US$56 million in the equivalent period in 2019.  The group remains resilient and cash-generative.  HACTL performed strongly and saw cargo throughput maintained, and JEC had a solid start to the year, with improved performances both in Hong Kong and regionally.  Jardine Restaurants saw mixed results across its banners, with strong delivery sales for Pizza Hut in Hong Kong and Taiwan - thanks to a quick pivot towards this by management - but weaker performances in its other banners due to the impact of the pandemic.  Gammon's contribution was lower, with slower progress on several projects, while Jardine Schindler also saw a number of projects in Southeast Asia delayed, leading to a reduced contribution in the period.  Jardine Aviation Services delivered significantly lower results due to the substantial fall in flight volumes, which is expected to continue in the second half.

 

Jardine Motors

 

Jardine Motors saw its underlying net profit for the first half fall by 43% to US$61 million.  Zung Fu on the Chinese mainland experienced a challenging first quarter, as factories and showrooms closed due to the pandemic, the supply chain was disrupted and there were lower margins from aftersales services.  The second quarter saw some recovery in demand, but it is difficult to predict future performance given the uncertainty over the future impact of the pandemic.  Zung Fu in Hong Kong also saw poor margins in the period due to weaker consumer sentiment.  The United Kingdom business was materially impacted by lockdown measures and made a loss in the first half.  Conditions in the UK market are expected to remain challenging in the second half.

 

There was a higher contribution from the investment in Zhongsheng, relating to its performance for the six months from July to December 2019. 

 

Hongkong Land

 

Hongkong Land's underlying profit attributable to shareholders for the first six months was US$353 million, down 24% from the equivalent period in 2019.  There was a loss attributable to shareholders of US$1,828 million after accounting for a net non-cash loss of US$2,180 million arising on the bi-annual revaluation of investment properties, due to lower open market rents.  This compares with a profit attributable to shareholders of US$411 million in the first half of 2019, which included a net revaluation loss of US$55 million.  The group's financial position remains robust, with a strong balance sheet and liquidity.

 

The group's office portfolio in Hong Kong remained resilient, despite subdued leasing activity, with vacancy at 5% at the end of June 2020 (4.5% on a committed basis), compared to 2.9% at the end of 2019.  The Central retail portfolio was negatively impacted in the first half by deteriorating consumer sentiment and various measures introduced in Hong Kong to contain the pandemic.  Vacancy of 0.4% on both a physical and committed basis was virtually unchanged compared to 0.3% at the end of 2019. 

 

In Singapore, rental reversions remained positive in the group's office portfolio in the first half and vacancy was 1.5% at the end of June 2020 (1% on a committed basis), compared with 5% at the end of 2019. 

 

In Shanghai, planning of Hongkong Land's prime mixed-use site along the Huangpu River in the Xuhui District is underway, with completion expected in multiple phases through to 2027.  The project will substantially expand Hongkong Land's portfolio and provide it with a significant presence in the predominant commercial hub of the Chinese mainland, complementing its large-scale presence in the other key Asian financial centres of Hong Kong and Singapore.

 

Since securing the site and subject to relevant approvals by the authorities, the group has conditionally reached agreements with two strategic partners to jointly develop the site, receiving a prepayment of US$2.3 billion in the first half with a further amount of US$320 million received in July.  The land premium and related costs of US$4.5 billion were paid in the first half.  The project will be funded by a combination of internal resources and external funding.

 

On the Chinese mainland, as anticipated the profit contribution from Development Properties in the first half of 2020 decreased compared to the first half of 2019 due to fewer sales completions.  Market sentiment in the group's core markets started to recover in the second quarter, following the temporary closure of all sales galleries and the suspension of construction activities for some two months in the first quarter as a result of the impact of the pandemic.  At 30th June 2020, the Group had US$2,183 million in sold but unrecognised contracted sales, compared with US$1,860 million at the end of 2019. 

 

The profit contribution from the Singapore business in the first half of 2020 was lower than in the first half of 2019, as sales galleries and construction activities there were also suspended as a result of the pandemic.  The 309-unit Margaret Ville development is 92% pre-sold, whilst pre-sales at the 1,404-unit Parc Esta and the 638-unit Leedon Green projects have performed well under current market conditions.  The group's attributable interest in contracted sales was US$301 million in the first half of 2020, compared to US$255 million and US$414 million in the first and second halves of 2019, respectively.

 

In the rest of Southeast Asia, construction activities at the group's projects have largely been suspended or curtailed since April and market sentiment remains subdued.

 

Dairy Farm

 

Dairy Farm saw sales of US$5.2 billion for the period by its subsidiaries, 9% lower than the prior year.  Underlying profit was US$105 million, 40% lower than the same period last year.

 

In Health and Beauty, performance in North Asia was materially affected by a continuing lack of overseas tourist customers in Hong Kong, despite the business initially seeing strong demand for personal protection equipment.  The Southeast Asia business performed well in the first quarter but was then impacted as social distancing requirements began to take effect towards the end of the first quarter.

 

The Convenience Stores business was impacted in the period by movement restrictions and physical distancing requirements, as well as temporary store closures on the Chinese mainland and reduced customer numbers in Hong Kong and Singapore.  Performance improved over the course of the first half in Hong Kong and on the Chinese mainland in particular, as various lockdown restrictions eased, but it is difficult to predict performance for the rest of the year given uncertainty over the future impact of the pandemic.  Recovery in Singapore has lagged behind that in North Asia.

 

Maxim's, the group's 50%-owned associate, saw a significant reduction in customer numbers and a number of temporary store closures, and reported a loss for the first half.  The performance of the business improved over the course of the second quarter, as pandemic-related restrictions eased, but any return of restrictions which reduce customer levels or require further temporary closures of its outlets will impact future performance

 

The Grocery Retail business saw improved profits.  The strong performance was underpinned by the ongoing execution of the group's transformation plan and improvement programmes, as well as changing customer behaviours as a result of the pandemic.  The strong turnaround momentum continued in Singapore and Malaysia as the execution of improvement programmes and the group's space optimisation plan both made a positive contribution, and there were encouraging performances from new upscale formats and refreshed stores.  Market conditions in Indonesia remained challenging.  The divestment of Wellcome Taiwan is expected to complete by the end of the year.

 

There was also a good performance from Home Furnishings, which saw strong contributions from new stores, enhancements in the margin mix and lower cost of goods in the period outweigh the impact on customer visits of pandemic-related restrictions, including temporary store closures. 

 

Mandarin Oriental

 

Mandarin Oriental recorded a significant underlying loss of US$102 million for the first half of the year, compared with a profit of US$11 million in the equivalent period in 2019, despite implementing a number of cost containment measures.  In Europe and America, all of the group's hotels were closed from late March onwards.  Hotels in Asia and the Middle East mostly remained open during the first half but operated at very low occupancy levels once anti-pandemic restrictions and border controls were imposed.  Combined total revenue of hotels under management fell by 57% in the first half compared to the equivalent period last year, with the majority of this decline occurring in the second quarter, which saw an 86% decline against the prior year. 

 

The group's flagship Hong Kong hotel remained open, but with single-digit percentage occupancy levels for most of the second quarter, and it made a loss during the first half.  It did, however, benefit from a partial recovery in food and beverage business when government anti-pandemic measures were relaxed. 

 

The group's hotels on the Chinese mainland saw a recovery in occupancy levels in June to around 40%, and elsewhere a number of the group's hotels have begun to reopen in anticipation of some demand but, in many cases, this demand is expected to remain low and not in line with normal market conditions.  Overall a material recovery in business levels is not expected until 2021 at the earliest and a significant further loss is likely in the second half of the year.

 

Jardine Cycle & Carriage

 

Jardine Cycle & Carriage reported an underlying profit for the period of US$138 million, 66% lower than the equivalent period last year.  Profit attributable to shareholders fell by 30% to US$301 million.  The pandemic is expected to continue to adversely impact performance for the rest of the year.

 

Astra's contribution to underlying profit fell by 47% to US$171 million.  There were significantly weaker performances from its automotive, financial services and heavy equipment and mining operations.

 

The contribution from JC&C's Direct Motor Interests and Thaco fell materially as automotive operations were forced to close during the second quarter due to lockdown restrictions. 

 

Thaco saw sales and margins impacted as a result of the difficult market conditions.  The contribution by Cycle & Carriage Singapore was 95% lower than the same period last year, as the business was impacted by a material reduction in the overall passenger car market in Singapore and its market share also fell.  Tunas Ridean's contribution was 70% lower due to weaker performances across its automotive, consumer finance and rental operations.  In Malaysia, Cycle & Carriage Bintang reported a higher loss than in the same period last year, as sales and margins both fell.  Market conditions are expected to remain difficult for the remainder of the year.

 

There was a 5% lower contribution from Siam City Cement in Thailand, reflecting weaker domestic performance, which was partially offset by an improved contribution from its regional operations, primarily in Vietnam.  The contribution from Refrigeration Electrical Engineering Corporation in Vietnam was also lower, with weaker performances from its power and water investments and its M&E business, partially offset by stronger real estate contributions.

 

Vinamilk produced dividend income of US$12 million in the period, compared to US$28 million in the same period last year, which included the 2019 interim dividend.  Vinamilk's 2020 interim dividend will be recognised later in the year. The business reported a slightly higher profit in the first half, in local currency terms, as domestic dairy and exports continued to grow.

 

Astra

 

Excluding the gain on the disposal of its investment in Permata Bank, Astra reported net profit equivalent to US$372 million, under Indonesian accounting standards, 44% lower in its reporting currency.  This was mainly due to significantly lower contributions from its automotive, financial services and heavy equipment and mining businesses, partially offset by its agribusiness

 

The pandemic containment measures implemented across Indonesia caused severe disruption to Astra's operations, including the temporary closure of its automotive manufacturing and distribution operations. There was also a significant rise in the number of restructured loans in its financial services businesses, in response to government operating requirements.  In addition, depressed coal prices led to a deterioration in Astra's heavy equipment, mining contracting and mining businesses.

 

Net income from Astra's automotive business fell by 79% to US$48 million, mainly due to a substantial fall in sales volumes, especially in the second quarter.  The overall wholesale car market declined by 46% in the first half and Astra's car sales were 45% lower, although it maintained its market share. The wholesale motorcycle market declined by 42% in the period. Astra's Honda motorcycle sales fell by 40%, but its market share increased from 75% to 77%.  Components business Astra Otoparts reported a net loss of US$20 million, compared with a profit of US$17 million in the same period last year, mainly due to lower revenues from the original equipment manufacturer and replacement market segments.  Market conditions are expected to remain difficult for the remainder of the year.

Net income from Astra's financial services division fell by 25% to US$142 million, primarily due to increased loan loss provisions to cover higher non-performing loan losses in the consumer and heavy equipment-focused finance businesses.  Consumer finance businesses saw a 16% decrease in the amounts financed and the net income contribution from the car-focused finance companies decreased by 24%, while the contribution from the motorcycle-focused financing business fell by 25%.  In both cases this was caused by higher loan loss provisioning, as non-performing loans increased.  Heavy equipment-focused finance operations saw a 14% decrease in the amounts financed. General insurance company Asuransi Astra Buana reported a 4% decrease in net income to US$35 million, caused by lower underwriting income. 

 

In May 2020, Astra completed its sale of its 44.56% stake in Permata Bank for a net consideration of US$1.1 billion. 

 

Net income from Astra's Heavy Equipment, Mining, Construction and Energy division decreased by 29% to US$160 million, mainly due to lower heavy equipment sales and mining contracting volume caused by weaker coal prices.  Market conditions are expected to remain challenging for the rest of the year. United Tractors reported a 28% decrease in net income, while Komatsu heavy equipment sales fell by 56%, and parts and service revenues were also lower.  Mining contracting operations reported lower overburden removal volume and lower coal production.  Coal mining subsidiaries achieved higher coal sales but were affected by lower coal prices.  Agincourt Resources saw 4% lower gold sales.  General contractor Acset Indonusa, however, reported a 38% lower net loss of US$17 million, mainly due to reduced funding costs.

 

Astra's infrastructure and logistics division reported a net loss of US$6 million for the first half, compared to a net profit of US$6 million for the same period in 2019, mainly due to lower toll road revenues caused by lower traffic volumes.  Serasi Autoraya's net income decreased by 62% to US$2 million, primarily as a result of lower operating margins, despite a 3% increase in vehicles under leasing contract and higher used car sales.

 

Net income from Astra's Agribusiness division increased significantly to US$21 million, due to higher crude palm oil prices, especially in the first quarter. 

 

Net income from Astra's information technology division was 64% lower, primarily due to lower revenues in Astra Graphia's document solution and office service businesses.

 

The group's property division saw net income increase, mainly due to higher occupancy at Menara Astra and earnings recognised from its development project, Asya Residences.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Profit and Loss Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Six months ended 30th June

 

 

 

Year ended 31st December

 

 

 

2020

 

 

 

201 9

 

 

 

201 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying

business

performance

US$m

Non-trading

items

US$m

 

 

 

 

 

 

Total

US$m

 

Underlying

business

performance

US$m

 

 

 

Non-trading

items

US$m

 

 

 

 

 

Total

US$m

 

Underlying

business

performance

US$m

 

 

 

Non-trading

items

US$m

 

 

 

 

 

Total

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (note 2)

 

12,748

 

 

 

-

 

 

 

12,748

 

 

 

15,999

 

 

 

-

 

 

 

15,999

 

 

 

32,665

 

 

 

-

 

 

 

32,665

 

Net operating costs (note 3)

 

(11,642)

 

 

 

325

 

 

 

(11,317)

 

 

 

(14,281)

 

 

 

47

 

 

 

(14,234)

 

 

 

(28,930)

 

 

 

39

 

 

 

(28,891 )

 

Change in fair value of investment

properties

 

-

 

 

 

(2,397)

 

 

 

(2,397)

 

 

 

-

 

 

 

(65)

 

 

 

(65)

 

 

 

-

 

 

 

(915)

 

 

 

(915)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,106

 

 

 

(2,072)

 

 

 

(966)

 

 

 

1,718

 

 

 

(18)

 

 

 

1,700

 

 

 

3 , 735

 

 

 

(876)

 

 

 

2 ,859

 

Net financing charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- financing charges

 

(327)

 

 

 

-

 

 

 

(327)

 

 

 

(376)

 

 

 

-

 

 

 

(376)

 

 

 

(751)

 

 

 

-

 

 

 

(751)

 

- financing income

 

105

 

 

 

-

 

 

 

105

 

 

 

104

 

 

 

-

 

 

 

104

 

 

 

221

 

 

 

-

 

 

 

221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(222)

 

 

 

-

 

 

 

(222)

 

 

 

(272)

 

 

 

-

 

 

 

(272)

 

 

 

(530)

 

 

 

-

 

 

 

(530)

 

Share of results of Jardine Matheson

(note 4)

 

42

 

 

 

5

 

 

 

47

 

 

 

91

 

 

 

880

 

 

 

971

 

 

 

187

 

 

 

946

 

 

 

1,133

 

Share of results of associates and joint

ventures (note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- before change in fair value of

investment properties

 

199

 

 

 

(57)

 

 

 

142

 

 

 

502

 

 

 

2

 

 

 

504

 

 

 

1,108

 

 

 

12

 

 

 

1,120

 

- change in fair value of investment

properties

 

-

 

 

 

(135)

 

 

 

(135)

 

 

 

-

 

 

 

(10)

 

 

 

(10)

 

 

 

-

 

 

 

(11)

 

 

 

(11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

199

 

 

 

(192)

 

 

 

7

 

 

 

502

 

 

 

(8)

 

 

 

494

 

 

 

1,108

 

 

 

1

 

 

 

1,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before tax

 

1,125

 

 

 

(2,259)

 

 

 

(1,134)

 

 

 

2,039

 

 

 

854

 

 

 

2,893

 

 

 

4,500

 

 

 

71

 

 

 

4 ,571

 

Tax (note 6)

 

(226)

 

 

 

11

 

 

 

(215)

 

 

 

(378)

 

 

 

(2)

 

 

 

(380)

 

 

 

( 902 )

 

 

 

(18)

 

 

 

( 920 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) after tax

 

899

 

 

 

(2,248)

 

 

 

(1,349)

 

 

 

1,661

 

 

 

852

 

 

 

2,513

 

 

 

3,5 98

 

 

 

53

 

 

 

3 ,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

(notes 7 & 9)

 

395

 

 

 

(1,356)

 

 

 

(961)

 

 

 

779

 

 

 

878

 

 

 

1,657

 

 

 

1,681

 

 

 

497

 

 

 

2 ,178

 

Non-controlling interests

 

504

 

 

 

(892)

 

 

 

(388)

 

 

 

882

 

 

 

(26)

 

 

 

856

 

 

 

1,917

 

 

 

(444)

 

 

 

1 ,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

899

 

 

 

(2,248)

 

 

 

(1,349)

 

 

 

1,661

 

 

 

852

 

 

 

2,513

 

 

 

3,5 98

 

 

 

53

 

 

 

3 ,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(loss) per share (note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic

 

0.71

 

 

 

 

 

 

 

(1.72)

 

 

 

1.38

 

 

 

 

 

 

 

2.93

 

 

 

2.98

 

 

 

 

 

 

 

3 .86

 

- diluted

 

0.71

 

 

 

 

 

 

 

(1.72)

 

 

 

1.38

 

 

 

 

 

 

 

2.93

 

 

 

2 .98

 

 

 

 

 

 

 

3 .86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

 Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

Year ended

31st

December

 

 

 

 

 

2020

US$m

 

 

 

 

 

2019

US$m

 

 

 

 

 

2019

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit for the period

 

 

(1,349)

 

 

 

 

 

2,513

 

 

 

 

 

3 ,651

 

 

Other comprehensive (expense)/income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

 

(1)

 

 

 

 

 

(1)

 

 

 

 

 

(8)

 

 

Net revaluation surplus before transfer to investment properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- right-of-use assets

 

 

-

 

 

 

 

 

2,943

 

 

 

 

 

2,943

 

 

Tax on items that will not be reclassified

 

 

(1)

 

 

 

 

 

-

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

 

 

 

 

 

2,942

 

 

 

 

 

2,939

 

 

Share of other comprehensive income

  of Jardine Matheson

 

 

-

 

 

 

 

 

-

 

 

 

 

 

12

 

 

Share of other comprehensive expense of associates and joint ventures

 

 

(3)

 

 

 

 

 

-

 

 

 

 

 

(13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5)

 

 

 

 

 

2,942

 

 

 

 

 

2,938

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/gain arising during the period

 

 

(108)

 

 

 

 

 

256

 

 

 

 

 

486

 

 

- transfer to profit and loss

 

 

5

 

 

 

 

 

-

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(103)

 

 

 

 

 

256

 

 

 

 

 

489

 

 

Revaluation of other investments at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  through other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net (loss)/ g ain arising during the period

 

 

(3)

 

 

 

 

 

14

 

 

 

 

 

20

 

 

- transfer to profit and loss

 

 

(3)

 

 

 

 

 

-

 

 

 

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6)

 

 

 

 

 

14

 

 

 

 

 

19

 

 

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net loss arising during the period

 

 

(58)

 

 

 

 

 

(52)

 

 

 

 

 

(93)

 

 

- transfer to profit and loss

 

 

4

 

 

 

 

 

(4)

 

 

 

 

 

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54)

 

 

 

 

 

(56)

 

 

 

 

 

(97)

 

 

Tax relating to items that may be reclassified

 

 

1

 

 

 

 

 

18

 

 

 

 

 

29

 

 

Share of other comprehensive (expense)/income

  of Jardine Matheson

 

 

(11)

 

 

 

 

 

67

 

 

 

 

 

74

 

 

Share of other comprehensive (expense)/income

  of associates and joint ventures

 

 

(401)

 

 

 

 

 

143

 

 

 

 

 

211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(574)

 

 

 

 

 

442

 

 

 

 

 

725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(579)

 

 

 

 

 

3,384

 

 

 

 

 

3,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (expense)/income for the  period

 

 

(1,928)

 

 

 

 

 

5,897

 

 

 

 

 

7 ,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

(1,210)

 

 

 

 

 

4,209

 

 

 

 

 

4 ,872

 

 

Non-controlling interests

 

 

(718)

 

 

 

 

 

1,688

 

 

 

 

 

2 ,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,928)

 

 

 

 

 

5,897

 

 

 

 

 

7 ,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2020

US$m

 

 

 

2019

US$m

 

 

 

 

2019

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

2,632

 

 

 

2,615

 

 

 

2,693

 

Tangible assets

 

6,476

 

 

 

6 ,727

 

 

 

6 ,841

 

Right-of-use assets

 

4,326

 

 

 

4,468

 

 

 

4,406

 

Investment properties

 

39,142

 

 

 

37,557

 

 

 

36,817

 

Bearer plants

 

483

 

 

 

499

 

 

 

503

 

Investment in Jardine Matheson

 

3,326

 

 

 

3,668

 

 

 

3,703

 

Associates and joint ventures

 

13,769

 

 

 

14 ,780

 

 

 

15,288

 

Other investments

 

2,538

 

 

 

2,752

 

 

 

2,675

 

Non-current debtors

 

3,303

 

 

 

3,135

 

 

 

3,023

 

Deferred tax assets

 

395

 

 

 

381

 

 

 

415

 

Pension assets

 

1

 

 

 

-

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

76,391

 

 

 

76,582

 

 

 

76 ,366

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

 

2,358

 

 

 

2,424

 

 

 

2,441

 

Stocks and work in progress

 

2,477

 

 

 

2 ,854

 

 

 

2 ,811

 

Current debtors

 

6,067

 

 

 

7 ,372

 

 

 

7 ,424

 

Current investments

 

40

 

 

 

37

 

 

 

29

 

Current tax assets

 

169

 

 

 

207

 

 

 

252

 

Bank balances and other liquid funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

6,521

 

 

 

4 ,552

 

 

 

5 ,346

 

- financial services companies

 

241

 

 

 

241

 

 

 

256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,762

 

 

 

4 ,793

 

 

 

5 ,602

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

17,873

 

 

 

17,687

 

 

 

18,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

94,264

 

 

 

94 ,269

 

 

 

94,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

56

 

 

 

56

 

 

 

56

 

Share premium and capital reserves

 

941

 

 

 

941

 

 

 

941

 

Revenue and other reserves

 

35,706

 

 

 

36,428

 

 

 

37,054

 

Own shares held

 

(2,298)

 

 

 

(2,278)

 

 

 

( 2 ,294)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' funds

 

34,405

 

 

 

35,147

 

 

 

35 ,757

 

Non-controlling interests

 

28,763

 

 

 

29,386

 

 

 

29 ,903

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

63,168

 

 

 

64,533

 

 

 

65,660

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

8,721

 

 

 

6,992

 

 

 

6,976

 

- financial services companies

 

1,426

 

 

 

1,803

 

 

 

1, 697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,147

 

 

 

8,795

 

 

 

8 ,673

 

Non-current lease liabilities

 

2,777

 

 

 

2,945

 

 

 

2,842

 

Deferred tax liabilities

 

702

 

 

 

696

 

 

 

767

 

Pension liabilities

 

375

 

 

 

327

 

 

 

364

 

Non-current creditors

 

407

 

 

 

349

 

 

 

356

 

Non-current provisions

 

280

 

 

 

267

 

 

 

289

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

14,688

 

 

 

13,379

 

 

 

13,291

 

 

 

 

 

 

 

 

 

 

 

 

 

Current creditors

 

9,182

 

 

 

8 ,954

 

 

 

8 ,287

 

Current borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

3,860

 

 

 

4,205

 

 

 

4 ,368

 

- financial services companies

 

2,049

 

 

 

1,820

 

 

 

1 , 853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,909

 

 

 

6,025

 

 

 

6 ,221

 

Current lease liabilities

 

823

 

 

 

834

 

 

 

795

 

Current tax liabilities

 

331

 

 

 

358

 

 

 

507

 

Current provisions

 

163

 

 

 

186

 

 

 

164

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

16,408

 

 

 

16,357

 

 

 

15,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

31,096

 

 

 

29, 736

 

 

 

2 9 ,265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

94,264

 

 

 

94,269

 

 

 

94,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Statement of Changes in Equity

 

 

 

Share

capital

US$m

 

Share

premium

US$m

 

Capital

reserves

US$m

 

 

 

Revenue

reserves

US$m

 

 

Contributed

surplus

US$m

Asset

revaluation

reserves

US$m

 

Hedging

reserves

US$m

 

Exchange

reserves

US$m

 

Own

shares

held

US$m

Attributable to shareholders of the Company

US$m

Attributable

to non-controlling interests

US$m

 

Total

equity

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2020 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2020

56

 

816

 

125

 

36,085

 

304

 

2,566

 

(27)

 

(1,874)

 

(2,294)

 

35,757

 

29,903

 

65,660

Total comprehensive expense

-

 

-

 

-

 

(965)

 

-

 

-

 

(57)

 

(188)

 

-

 

(1,210)

 

(718)

 

(1,928)

Dividends paid by the Company (note 10)

-

 

-

 

-

 

(140)

 

-

 

-

 

-

 

-

 

-

 

(140)

 

-

 

(140)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(401)

 

(401)

Employee share option schemes

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Scrip issued in lieu of dividends

-

 

-

 

-

 

4

 

-

 

-

 

-

 

-

 

-

 

4

 

-

 

4

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(4)

 

(4)

 

-

 

(4)

Subsidiaries disposed of

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(14)

 

(14)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

1

Change in interests in subsidiaries

-

 

-

 

-

 

5

 

-

 

-

 

-

 

-

 

-

 

5

 

(5)

 

-

Change in interests in associates and joint ventures

-

 

-

 

-

 

(8)

 

-

 

-

 

-

 

-

 

-

 

(8)

 

(3)

 

(11)

Transfer

-

 

-

 

(1)

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2020

56

 

816

 

125

 

34,982

 

304

 

2,566

 

(84)

 

(2,062)

 

(2,298)

 

34,405

 

28,763

 

63,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2019 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2019

56

 

816

 

209

 

33,996

 

304

 

264

 

(13)

 

(2,261)

 

(2,139)

 

31,232

 

28,342

 

59,574

Total comprehensive income

-

 

-

 

-

 

1,658

 

-

 

2,302

 

(10)

 

259

 

-

 

4,209

 

1,688

 

5 ,897

Dividends paid by the Company (note 10)

-

 

-

 

-

 

(136)

 

-

 

-

 

-

 

-

 

-

 

(136)

 

-

 

(136)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

( 654 )

 

( 654 )

Employee share option schemes

-

 

-

 

2

 

-

 

-

 

-

 

-

 

-

 

-

 

2

 

-

 

2

Scrip issued in lieu of dividends

-

 

-

 

-

 

5

 

-

 

-

 

-

 

-

 

-

 

5

 

-

 

5

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(139)

 

(139)

 

-

 

(139)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

15

 

15

Change in interests in subsidiaries

-

 

-

 

-

 

(8)

 

-

 

-

 

-

 

-

 

-

 

(8)

 

-

 

(8)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(18)

 

-

 

-

 

-

 

-

 

-

 

(18)

 

(5)

 

(23)

Transfer

-

 

-

 

(86)

 

86

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2019

56

 

816

 

125

 

35,583

 

304

 

2,566

 

(23)

 

( 2 ,002)

 

( 2 ,278)

 

35 ,147

 

29,386

 

64,533

 

 

Year ended 31st December 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2019

56

 

816

 

209

 

33 ,996

 

304

 

26 4

 

( 13 )

 

( 2,261 )

 

( 2 ,139)

 

31 ,232

 

28,342

 

59,574

Total comprehensive income

-

 

-

 

-

 

2 ,197

 

-

 

2,302

 

(14)

 

387

 

-

 

4 ,872

 

2 ,442

 

7 ,314

Dividends paid by the Company

-

 

-

 

-

 

(19 5 )

 

-

 

-

 

-

 

-

 

-

 

(19 5 )

 

-

 

(19 5 )

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(905)

 

(905)

Unclaimed dividends forfeited

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Employee share option schemes

-

 

-

 

2

 

-

 

-

 

-

 

-

 

-

 

-

 

2

 

-

 

2

Scrip issued in lieu of dividends

-

 

-

 

-

 

6

 

-

 

-

 

-

 

-

 

-

 

6

 

-

 

6

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

( 155 )

 

( 155 )

 

-

 

( 155 )

Subsidiaries acquired

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

14

 

14

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

18

 

18

Change in interests in subsidiaries

-

 

-

 

-

 

(7)

 

-

 

-

 

-

 

-

 

-

 

(7)

 

( 8 )

 

(15)

Change in interests in associates and joint ventures

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Transfer

-

 

-

 

(86)

 

86

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2019

56

 

816

 

125

 

36 ,085

 

304

 

2,566

 

( 27 )

 

(1,874)

 

(2,294)

 

35,757

 

29,903

 

65,66 0

                                                 

 

Contributed surplus represents the excess in value of shares acquired in consideration for the issue of the Company's shares, over the nominal value of those shares issued.  Under the Bye-Laws of the Company, the contributed surplus is distributable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Consolidated Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

Year ended 31st December

 

 

 

2020

US$m

 

 

 

 

2019

US$m

 

 

 

2019

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

2,402

 

 

 

2,228

 

 

 

4,728

 

Interest received

 

88

 

 

 

8 4

 

 

 

180

 

Interest and other financing charges paid

 

(341)

 

 

 

(371)

 

 

 

(744)

 

Tax paid

 

(477)

 

 

 

(525)

 

 

 

(927)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,672

 

 

 

1, 416

 

 

 

3,237

 

Dividends from Jardine Matheson

 

546

 

 

 

546

 

 

 

734

 

Dividends from associates and joint ventures

 

101

 

 

 

346

 

 

 

992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

2,319

 

 

 

2,308

 

 

 

4,963

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of subsidiaries

 

(21)

 

 

 

-

 

 

 

( 28 )

 

Purchase of associates and joint ventures (note 1 2 (a))

 

(151)

 

 

 

(639)

 

 

 

(1,088)

 

Purchase of other investments (note 1 2 (b))

 

(220)

 

 

 

(279)

 

 

 

(409)

 

Purchase of intangible assets

 

(61)

 

 

 

(123)

 

 

 

(2 16 )

 

Purchase of tangible assets

 

(312)

 

 

 

(615)

 

 

 

(1,129)

 

Additions to right-of-use assets

 

(8)

 

 

 

(51)

 

 

 

(60)

 

Additions to investment properties (note 12(c))

 

(4,557)

 

 

 

(72)

 

 

 

( 168 )

 

Additions to bearer plants

 

(16)

 

 

 

(21)

 

 

 

( 44 )

 

Advance to and repayment to associates and joint ventures (note 1 2 (d))

 

(139)

 

 

 

(410)

 

 

 

(1, 025 )

 

Advance from and repayment from associates and joint  ventures (note 1 2 (e))

 

340

 

 

 

321

 

 

 

920

 

Advance received on conditional sale of a subsidiary in Hongkong Land (note 1 2 (c))

 

2,252

 

 

 

-

 

 

 

-

 

Sale of subsidiaries

 

48

 

 

 

-

 

 

 

-

 

Sale of associates and joint ventures (note 12(f))

 

1,138

 

 

 

3

 

 

 

3

 

Sale of other investments (note 1 2 (g))

 

188

 

 

 

205

 

 

 

450

 

Sale of intangible assets

 

1

 

 

 

-

 

 

 

-

 

Sale of tangible assets

 

27

 

 

 

8

 

 

 

61

 

Sale of right-of-use assets

 

-

 

 

 

1

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

(1,491)

 

 

 

(1,672)

 

 

 

(2,730)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital contribution from non-controlling interests

 

1

 

 

 

15

 

 

 

18

 

Change in interests in subsidiaries (note 1 2 (h))

 

-

 

 

 

( 8 )

 

 

 

(15)

 

Drawdown of borrowings

 

4,436

 

 

 

4 ,508

 

 

 

7,336

 

Repayment of borrowings

 

(3,122)

 

 

 

(3,627)

 

 

 

(6,454)

 

Principal elements of lease payments

 

(440)

 

 

 

(443)

 

 

 

(893)

 

Dividends paid by the Company

 

(273)

 

 

 

(261)

 

 

 

(376)

 

Dividends paid to non-controlling interests

 

(251)

 

 

 

(654)

 

 

 

(905)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

351

 

 

 

(470)

 

 

 

(1,289)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net in crease in cash and cash equivalents

 

1,179

 

 

 

166

 

 

 

944

 

Cash and cash equivalents at beginning of period

 

5,583

 

 

 

4 ,555

 

 

 

4 ,555

 

Effect of exchange rate changes

 

(31)

 

 

 

56

 

 

 

84

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

6,731

 

 

 

4 ,777

 

 

 

5 ,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Strategic Holdings Limited

Notes to Condensed Financial Statements

 

 

1.  Accounting Policies and Basis of Preparation

 

The condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and on a going concern basis.  The condensed financial statements have not been audited or reviewed by the Group's auditors pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.

 

The Group had early adopted the 'Interest Rate Benchmark Reform: Amendments to IFRS 9, IAS 39 and IFRS 7' (effective 1st January 2020) for the Group's annual reporting period commencing 1st January 2019.

 

There are no changes to the accounting policies as described in the 2019 annual financial statements other than the following changes in relation to rent concessions and government grants.  Other amendments which are effective in 2020 and relevant to the Group's operations, do not have a significant effect on the Group's accounting policies.  The Group has not early adopted any other standard or amendments that have been issued but not yet effective.

 

COVID-19 Related Rent Concessions: Amendment to IFRS 16 Leases

 

The Group has early adopted the Amendment, which is effective 1st June 2020, for the Group's annual reporting period commencing 1st January 2020.  Where the Group is a lessee, the practical expedient is applied to account for the change in lease payments resulting from rent concessions granted as a direct consequence of the COVID-19 pandemic and elects not to assess these concessions as lease modifications when all of the following conditions are met:

 

(i)  the revised lease payments are substantially the same as, or less than, the consideration for the lease immediately preceding the change;

 

(ii)  reduction in lease payments relates to payment due on or before 30th June 2021; and

 

(iii)  there is no substantive change to the other terms and conditions of the lease.

 

Rent concessions fulfilling the above conditions are recognised in the profit and loss over the period in which they cover.

 

Government grants

 

Grants from government are recognised at their fair values where there is reasonable assurance that the grants will be received, and the Group will comply with the conditions associated with the grants.

 

Grants that compensate the Group for expenses incurred are recognised in the profit and loss as other income on a systematic basis in the period in which the expenses are recognised.  Unconditional grants are recognised in the profit and loss as other income when they become receivable.

 

Grants related to assets are deducted in arriving at the carrying value of the related assets.

 

 

2.  Revenue

 

 

 

 

 

 

 

 

 

Jardine

 

 

 

 

 

 

 

 

Hongkong

 

Dairy

 

Mandarin

 

Cycle &

 

 

 

Intersegment

 

 

 

 

Land

 

Farm

 

Oriental

 

Carriage

 

Astra

 

transactions

 

Group

 

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product and service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

820

 

-

 

-

 

-

 

37

 

(2)

 

855

Motor vehicles

 

-

 

-

 

-

 

514

 

2,169

 

-

 

2,683

Retail and restaurants

 

-

 

5,240

 

-

 

-

 

-

 

-

 

5,240

Financial services

 

-

 

-

 

-

 

-

 

716

 

-

 

716

  Engineering, heavy equipment, mining, construction and energy

 

-

 

-

 

-

 

-

 

2,245

 

-

 

2,245

Hotels

 

-

 

-

 

96

 

-

 

-

 

-

 

96

Other

 

-

 

-

 

-

 

-

 

913

 

-

 

913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

820

 

5,240

 

96

 

514

 

6,080

 

(2)

 

12,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognised at a point in time

 

102

 

5,240

 

38

 

487

 

5,147

 

-

 

11,014

Recognised over time

 

184

 

-

 

50

 

27

 

123

 

-

 

384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

286

 

5,240

 

88

 

514

 

5,270

 

-

 

11,398

Revenue from other sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Rental income from investment properties

 

466

 

-

 

-

 

-

 

5

 

(2)

 

469

  Revenue from financial services companies

 

-

 

-

 

-

 

-

 

713

 

-

 

713

Other

 

68

 

-

 

8

 

-

 

92

 

-

 

168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

534

 

-

 

8

 

-

 

810

 

(2)

 

1,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

820

 

5,240

 

96

 

514

 

6,080

 

(2)

 

12,748

 

Six months ended 30th June 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product and service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

804

 

-

 

-

 

-

 

21

 

(2)

 

823

Motor vehicles

 

-

 

-

 

-

 

966

 

3,503

 

-

 

4,469