REG - Jardine Matheson Hdg - Half-Year Results
01/08/2024 12:30
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RNS Number : 8312Y Jardine Matheson Hldgs Ltd 01 August 2024
1 August 2024
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 Matheson Holdings Limited
Results for the Six Months ended 30 June 2024
Headwinds Impact Results in Challenging Markets
Highlights
· Underlying profit attributable to shareholders of US$550 million and
underlying earnings per share of US$1.91
· Stable interim dividend of US$0.60
· Underlying profit 33% below 2023, principally due to non-recurring
impairments in Hongkong Land
· DFI Retail underlying profit up 127%
"The Group delivered weaker results in the first half of 2024, impacted by
impairments in Hongkong Land's Chinese mainland Development Properties
business and challenging market conditions in Indonesia and Vietnam. There
was, however, an encouraging improvement in DFI Retail's year-on-year
performance.
The Group has a strong balance sheet and, under leadership strengthened by new
CEOs in four of its portfolio companies, will focus on delivering sustainable
long-term value and growth from its growing markets in Asia."
Ben Keswick, Executive Chairman
Results
(unaudited) ( )
Six months
ended 30 June
2024 2023 ( ) Change
US$m US$m ( ) %
restated(Ω)
Revenue 17,280 18,207 -5
Underlying profit* attributable to shareholders 550 823 -33
(Loss)/profit attributable to shareholders (40) 566 n/a
Shareholders' funds(#) 28,179 29,010 -3
US$ US$
Underlying earnings per share* 1.91 2.84 -33
(Loss)/earnings per share (0.14) 1.95 n/a
Net asset value per share(#) 96.93 100.31 -3
Interim dividend per share 0.60 0.60 -
* 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 30 June 2024 and 31 December 2023, respectively. Net asset value per
share is based on the book value of shareholders' funds.
Ω The 2023 financials have been restated for comparability with IFRS 17
restatements made in the 2023 Annual Report.
The interim dividend of US$0.60 per share will be payable on 16 October 2024
to shareholders on the register of members at the close of business on 23
August 2024 and will be available in cash with a scrip alternative.
Chairman's Statement
Overview
The Group's underlying net profit attributable to shareholders for the first
half of 2024 was US$550 million, 33% below the same period last year. This
significant drop principally reflected a weaker contribution from Hongkong
Land, mainly due to non-recurring impairments taken against certain
development projects on the Chinese mainland.
The Group's underlying profit before the impairments at Hongkong Land was down
14% (9% at constant exchange rates). This more modest drop reflected:
· expected headwinds from lower commodity prices at Astra and lower new car
margins on the Chinese mainland; and
· marginally lower underlying profits in most other businesses amid
challenging conditions; partially offset by
· significantly improved performance at DFI Retail.
Underlying earnings per share decreased by 33% to US$1.91.
The Group recorded a net non-trading loss attributable to shareholders in the
first half of US$590 million, mainly as a result of net fair value losses on
investment properties, compared with a net non-trading loss of US$257 million
in the first half of 2023. The Group recorded a loss attributable to
shareholders for the period of US$40 million, compared with a net profit of
US$566 million in the first half of 2023.
Dividend
The Board has announced an interim dividend of US$0.60 per share, unchanged
from the prior year.
Significant Developments
The Group continued to progress its strategic objectives in the first half of
the year.
Evolving the Group Portfolio
The continuing evolution of the Group's portfolio is crucial to ensuring the
long-term growth and sustainability of our business. We allocate capital
towards strategic growth initiatives, both at the Group level and within our
Group companies, while divesting non-strategic and lower-yielding assets.
In June 2024, Hongkong Land announced a US$1 billion transformation project
for the LANDMARK retail portfolio in the heart of Hong Kong. The project
combines a US$400 million investment by Hongkong Land with an estimated US$600
million investment from the group's retail tenants - including premier global
luxury brands - and reflects the Group's confidence in the future of Hong Kong
as a luxury retail, lifestyle and financial hub.
Mandarin Oriental achieved the topping-out of One Causeway Bay, its Grade A
office development, during the first half of the year. The project is due to
be completed by the second quarter of 2025. Mandarin Oriental continued to
execute its strategy, opening four new hotels and bringing the total number of
hotels under its management to 40.
The Group continued to simplify its portfolio in the period, by divesting a
number of businesses which were no longer aligned to its strategic
objectives. The disposal of the Group's 50% shareholding in Jardine Aviation
Services was completed in March 2024. DFI Retail completed the sale of its
Hero supermarket business in Indonesia in June 2024. In the first half
Mandarin Oriental sold its Paris hotel and adjoining retail interests.
During the period, the Group increased its shareholdings in Mandarin Oriental
(in which it now has an 85% interest) and Jardine Cycle & Carriage
('JC&C') (in which it now has an 83% interest). JC&C also launched a
public tender offer to increase its shareholding in REE Corporation in
Vietnam, subject to regulatory approval.
Driving Innovation and Operational Excellence
Many of the Group's companies made strong progress in the period in driving
greater efficiency and productivity in their businesses, with a positive
impact on results.
Our businesses are exploring the opportunities presented by Generative AI, and
in the first half of the year they all developed policies, to ensure a
consistent approach to this rapidly-developing area. Many of our businesses
introduced secure GenAI environments and tested the technology in areas
including marketing and customer engagement, and there was also a focus on
enhancing productivity, by making policies and procedures simpler and easier
to carry out.
Mandarin Oriental is modernising its systems and processes to support evolving
business needs, by implementing a new Guest Experience Programme, which will
greatly improve the group's ability to recognise, understand and engage
guests, while a redesign of Fans of M.O. will enhance Mandarin Oriental's
ability to attract and retain guests.
DFI Retail has relaunched its Wellcome app and website in Hong Kong and will
be refreshing and relaunching apps for its other major brands in the second
half of the year. The group has also expanded click-and-deliver and
click-and-collect service coverage in its Food and Convenience networks, while
the yuu Rewards programme continues to grow, with close to 3 million monthly
active members in Hong Kong, and 1.7 million members in Singapore. DFI
Retail has a strong focus on leveraging the rich data from the loyalty
programme to enhance in-store operations, particularly in areas such as
improving range and assortment.
The implementation of an in-house Global Business Services function has
continued, supporting the Group's businesses with process-based back-office
services for Finance, IT and People and Culture functions. DFI Retail, JEC,
Jardine Restaurant Group, Zung Fu and Jardine Matheson are now all leveraging
this service, which delivers economies of scale, and accelerates
transformation by allowing our businesses to focus more on strategic,
value-adding activities.
Our businesses continue to seek new inorganic growth opportunities in the
digital economy, emerging industries and new geographies. This is well
illustrated by Astra's partnership with Equinix, one of the world's largest
digital infrastructure companies, to develop data centres in Indonesia, as
well as United Tractors' acquisition of interests in Supreme Energy Sriwijaya,
Nickel Industries and Stargate.
Driving Leadership and Entrepreneurialism
Attracting, developing and retaining exceptional leaders is a key priority for
the Group and its businesses and is critical to achieving our strategic
ambitions. Over the last 12 months, we have strengthened the boards and the
executive management teams of our listed subsidiaries. New chief executive
officers have been appointed at DFI Retail, Hongkong Land, Mandarin Oriental
and Jardine Pacific and, on 28 June 2024, DFI Retail announced the appointment
of Tom van der Lee as Group Chief Financial Officer with effect from 1 October
2024, succeeding Clem Constantine, who is retiring.
With these changes, we have also clarified lines of accountability. The
executive teams of our companies are fully responsible for creating and
executing their business strategy and delivering on performance. These
executive teams are directly accountable to their company boards, which
provide challenge, support and guidance - bolstered by extensive
industry-specific expertise from independent non-executive directors.
As an engaged significant shareholder in its businesses, Jardines will drive
long-term growth and value creation through its representatives on its company
boards. Our focus in each of our companies will continue to be on critical
areas: strategy and performance, balance sheet strength and capital
investments, senior talent and succession, and sustainability.
The reframing of the Group's relationship with its businesses will see
individual businesses take primary accountability for supporting the
development of their colleagues as a whole. Jardines will refocus its
efforts to support key executives across our businesses in developing them
according to their potential and ambitions. This will include encouraging
increased accountability and introducing suitable long-term reward
structures. We will also continue to promote a work environment that is
diverse and inclusive.
Progressing Sustainability
Sustainability is a key driver of the Group's strategy: it underpins our
continuing focus on making the Group stronger for the future and is a key
element of our businesses' licence to operate. The Group and its businesses
continued to progress their sustainability agendas during the period, and most
of our businesses published sustainability reports in the first half of the
year.
Jardines published its annual Sustainability Report at the end of May 2024,
highlighting the strong progress made by the Group's businesses in 2023. In
the area of Climate Action, all subsidiaries have developed scope 1 and 2
decarbonisation targets and pathways to 2030, most of which are
1.5°C-aligned. Our businesses have started to implement their
decarbonisation pathways and are already seeing lower GHG emissions, as well
as an increasing proportion of total energy consumption coming from renewable
sources.
Under Responsible Consumption, our businesses have focussed during the period
on reducing waste, by strengthening waste management and exploring circular
solutions to transform waste into valuable resources. Across the Group, the
level of waste generated has fallen by 4% since 2022, with 94% of waste now
diverted, and 25% less waste disposed of than in 2022.
Within the context of a focus on long-term growth, many of our businesses are
actively participating in initiatives which support social inclusion. There
is a particular focus on promoting education and health initiatives. Our
businesses have enhanced learning and development opportunities for colleagues
and the Group and several businesses have continued to provide valuable
financial support for students from less affluent backgrounds to access higher
education. There is also a strong focus on advocacy for greater awareness of
mental health and significant investment in mental health support. The
Group's investment in positive changes to livelihoods and building stronger
communities totalled US$64 million in 2023.
Our colleague volunteering programme aims to facilitate participation by
colleagues across our Group companies in a range of social inclusion and other
activities. The programme continued to gather momentum over the past year,
with over 95,000+ volunteer hours contributed to the community in 2023.
The Group operates some businesses in Indonesia which are the focus of
stakeholders in relation to environmental and biodiversity-related issues.
We believe that our businesses are taking appropriate and extensive steps to
protect nature and biodiversity and the environment, while at the same time
supporting the communities where they operate. This was demonstrated by the
announcement, in July 2024, of the application by Astra Agro Lestari, which
operates the Group's palm oil business, to join the Roundtable on Sustainable
Palm Oil ('RSPO'). RSPO is the pre-eminent global organisation focussed on
developing universal standards for sustainable palm oil.
Governance
As previously announced, the Company appointed Dr Keyu Jin as an Independent
Non-executive Director with effect from 31 January 2024, supporting our aim of
enhancing our approach to governance and our ambition to increase the breadth
and diversity of experience and backgrounds on the Company's board.
Anthony Nightingale stepped down from the Board and Audit Committee of the
Company with effect from 31 January 2024, and YK Pang and David Hsu stepped
down from the Board of the Company with effect from 31 March 2024. We thank
Anthony, YK and David for their significant contributions to the Group over
many years.
As part of the ongoing enhancements to the Group's governance approach, a
number of changes were announced by Mandarin Oriental and DFI Retail on 16
July 2024. These changes ensure that the composition and operation of the
board of each company are further strengthened and that the Group has clearly
defined shareholder representatives on each board. The changes will also
enhance the effectiveness of remuneration and nominations committees and
ensure that there are clear responsibilities for reporting to the Jardine
Matheson Board.
Outlook
We continue to expect the Group's full-year results to be modestly below those
of 2023.
The Group has a strong balance sheet and under leadership strengthened by new
CEOs in four of its portfolio companies, will focus on delivering sustainable
long-term value and growth from its growing markets in Asia.
Ben Keswick
Executive Chairman
Operating Review
The performance of the Group's businesses is described below, in descending
order of contribution to the Group's underlying profit for the first half of
the year.
Business Group share of underlying profit Change Shareholders' funds Change
%
%
H1 2024 H1 2023 30 June 2024 31 December 2023
US$m
US$m
US$m
US$m
Astra 394 417 -6 5,203 5,191 -
Zhongsheng(#) 63 89 -29 1,613 1,547 4
DFI Retail 58 26 127 808 855 -6
Jardine Pacific 52 64 -19 1,235 1,229 1
Mandarin Oriental 19 22 -15 2,514 2,408 4
JC&C 15 37 -60 1,345 1,165 15
Hongkong Land (4) 224 n/a 16,223 17,003 -5
Total 597 879 -32 28,941 29,398 -2
# Previously Jardine Motor Interests.
Certain financial information of the Group's listed subsidiaries presented and
referred to below represents the financial information of each respective
business of the Group as reported within their own half-year results
announcement ('100% basis'), which we believe provides the reader with a
better understanding of the relevant listed Group subsidiaries.
Astra
Under Indonesian accounting standards, Astra recorded net income of Rp 15.9
trillion (equivalent to US$988 million), 9% lower than in 2023. The lower
result mainly reflects a lower contribution from the group's heavy equipment
and mining businesses.
The wholesale car market decreased by 19% in the first half, while Astra's car
sales were 17% lower, with its market share increasing from 55% to 57%. The
wholesale market for motorcycles decreased slightly, and Astra Honda's
motorcycle sales fell by 4% compared with the same period last year, with its
market share reducing from 80% to 77%. Astra Otoparts reported a 26%
increase in net income, mainly due to higher export earnings which offset the
impact of lower domestic original equipment manufacturer sales.
Astra's Heavy Equipment, Mining, Construction and Energy division saw net
income decrease by 15% to US$365 million, mainly due to lower contributions
from its heavy equipment and mining contracting businesses, which were
impacted by lower coal prices.
United Tractors reported a 15% decrease in net income to US$594 million.
Komatsu heavy equipment sales decreased by 32% and revenues from the parts
and service businesses were lower. Mining contracting operations reported a
13% increase in overburden removal volume. United Tractors' coal mining
subsidiaries recorded a 17% increase in coal sales. Agincourt Resources
reported stable gold sales and benefitted from higher gold selling prices.
United Tractors recorded nickel mining profit contributions in 2024 from its
19.99% interest in Nickel Industries Limited, acquired in September 2023, and
majority-owned Stargate Pasific Resources, which was acquired in December
2023.
Net income from Astra's financial services division increased by 8% to US$257
million, due to higher contributions from the consumer and heavy equipment
finance businesses. Consumer finance businesses saw a 5% increase in new
amounts financed, while the net income contribution from the group's
car-focussed finance companies increased by 2%. The contribution from the
motorcycle-focussed financing business increased by 12%. General insurance
company Asuransi Astra Buana reported an 11% increase in net income.
Net income from Agribusiness increased by 36% to US$25 million, mainly due to
higher crude palm oil selling prices. Astra's Infrastructure and Logistics
division reported a 24% increase in net income, largely as a result of
improved performance in its toll road businesses.
Zhongsheng
The profit contribution from the Group's interest in Zhongsheng was US$63
million, lower than the same period last year, as profits from new car sales
continued to be impacted by intense market competition, including from
domestically-produced electric vehicle penetration on the Chinese mainland,
partially offset by the robust growth in Zhongsheng's used car business and
the resilient performance of its aftersales services segment.
Despite continuing challenging market conditions for Chinese dealerships,
however, the Group believes that Zhongsheng is well-positioned and has strong
execution capabilities to implement its strategic priorities of being more
digitalised, centralised and effective in customer operations and services,
establishing itself as China's most trusted premium auto service brand.
DFI Retail
DFI Retail reported good first-half underlying profit growth of US$76 million,
up from US$33 million in the same period last year. This was underpinned by
strong performance from the Convenience and Food segments. The performance
of the group's associates also improved, due to reduced losses from Yonghui,
which offset a lower contribution from Maxim's.
Profit for the group's Food division increased in the first half to US$26
million, driven by improved sales mix and disciplined cost control.
Convenience profit grew by 73% compared to the same period last year, with a
favourable product mix shift supporting margin accretion and profit growth
across all markets.
The Health and Beauty division reported profits in the first half broadly in
line with the same period last year. Mannings Hong Kong's performance in the
second quarter was affected by a strong comparable period last year, when
consumption vouchers were issued, and outbound travel during holiday
periods. Guardian reported good profit growth in the first half, driven
primarily by strong performance in Indonesia and Singapore.
Profit for the Home Furnishings division was negatively impacted in all
markets by a challenging sales environment, driven in particular by subdued
property market sentiment.
The group's share of Maxim's underlying profits was US$8 million for the first
half, a 31% decline year-on-year, as performance was adversely affected by
challenging trading conditions in Hong Kong and the Chinese mainland.
The group's share of Yonghui's underlying losses was US$8 million, a
significant improvement from the same period last year, as a result of ongoing
business optimisation efforts.
Jardine Pacific
Among the Group's unlisted companies, Jardine Pacific operates within three
main business segments: engineering, consumer businesses and transport
services. Jardine Pacific reported 19% lower underlying net profit of US$52
million in the first half, compared with US$64 million in the equivalent
period in 2023. Lower profit from most businesses was partially offset by
higher contributions from both Gammon and Hactl. Total profit attributable
to shareholders was US$50 million, after fair value adjustments on investment
properties and the loss on disposal of Jardine Aviation Services.
Within the group's engineering businesses, Jardine Schindler's contribution
was in line with the same period last year. Given the competitive
environment, securing new orders remains challenging. JEC had a challenging
first half of the year. Lower sales, partially due to the timing of
projects, and reduced gross margins, drove lower profit in Hong Kong,
partially offset by an improvement in some of JEC's regional businesses.
Gammon had a satisfactory first half. While sales and gross margins were
materially higher, there was a lower gross profit percentage recognised from
ongoing projects, some of which were affected by timing. Good cost control and
higher financing income helped drive better performance.
Jardine Pacific's consumer businesses continued to face challenging
conditions. Jardine Restaurants recorded a net loss, although lower than in
the same period last year, due to challenging market conditions across all
markets. Pizza Hut and KFC Hong Kong reported losses, but there are some
signs that conditions are gradually improving. The Taiwan operations
continued to see increased competition, resulting in pressure on sales and
higher input costs, which drove lower profit.
Zung Fu Hong Kong had a difficult first half, reporting a net loss. The
Government's announcement at the end of February 2024 of changes in the tax
concession on electric vehicles, effective 1 April 2024, materially reduced
the sales of Mercedes Benz and Hyundai passenger cars in the remainder of the
first half. As a result, both divisions experienced fewer car deliveries and
lower margins, as the market adjusted to the impact of the tax change.
Deliveries of the newly launched smart model were encouraging and, together
with Mercedes Benz aftersales, partially offset the weaker performances from
other segments of the business.
In Transport Services, Hactl reported increased profits, driven by higher
cargo volume (especially exports) handled, partially offset by increased staff
costs. Hactl's market share continues to be strong, with a focus on
maintaining operational standards, despite the challenging labour environment,
which is impacting the industry as a whole.
Mandarin Oriental
Mandarin Oriental continued to drive its strategy of opening more hotels,
developing its management business and disposing of non-core assets. The
group reported an underlying profit of US$23 million in the first half of
2024, compared to US$28 million in 2023, when the Owned Hotels business
benefitted from a non-recurring tax credit of US$5 million.
Performance was boosted by the re-opening of Mandarin Oriental, Singapore and
the opening of four new hotels: in Costa Navarino, Zurich, Mayfair and Muscat.
Hotels in EMEA benefitted from continued strength in leisure demand and
occupancy, while there was a modest improvement in performance in America,
driven by growth in corporate occupancy.
The underlying profit of the Management Business was US$14 million, down from
US$16 million in the equivalent period last year, as higher fee income was
offset by timing differences in marketing spend.
Underlying profit from Owned Hotels was US$11 million, compared with US$14
million in 2023. There were higher contributions in 2024 from the re-opened
Singapore hotel, as well as from Tokyo and Madrid.
In April 2024, the group completed the disposal of the hotel portion of its
Paris property, while retaining a long-term hotel management contract, and in
July the retail portion of the Paris property was sold.
The valuation of One Causeway Bay at 30 June 2024 was broadly flat, compared
to 31 December 2023.
Jardine Cycle & Carriage
JC&C recorded 14% lower profit than in the same period in 2023. The
group re-organised its business segment reporting in 2024 to give greater
clarity and add emphasis to its focus markets of Indonesia and Vietnam. The
new group structure comprises three business pillars: Indonesia, Vietnam and
Regional Interests.
The group's businesses in Indonesia (Astra and Tunas Ridean) contributed
US$513 million, a decrease of 9%, and the contribution from businesses in
Vietnam (THACO, REE and Vinamilk) was 12% lower at US$30 million. The group's
Regional Interests (Cycle & Carriage, Siam City Cement ('SCCC') and Toyota
Motor Corporation) contributed US$25 million, down 13%.
THACO contributed US$15 million, 5% higher than the same period last year.
Despite an increase in sales and improved market share, profit from the
group's automotive business declined due to lower margins driven by greater
competitive pressure.
REE's contribution of US$7 million was 39% lower than the previous year,
mainly due to lower hydropower demand, which led to reduced earnings from its
power generation business.
The profit contribution from Cycle & Carriage was 46% lower at US$9
million, with profits in Singapore impacted by higher leasing expenses and
lower profit contributions from used car operations. Profit from the
Malaysia operations was also lower as the business transitioned to an agency
model.
The contribution from SCCC was US$12 million, 38% higher than the previous
year, as lower energy costs supported its improved profits.
Hongkong Land
Hongkong Land reported a small underlying loss of US$7 million in the first
half, largely reflecting a non-recurring, non-cash impairment charge of US$295
million against certain Development Properties on the Chinese mainland.
Excluding the impact of the non-cash provisions, underlying profit was US$288
million, 32% lower than the prior year.
Hongkong Land's Investment Properties business delivered a solid performance
in the first half, with stable contributions from the luxury retail and
Singapore office segments, and a mild reduction in Hong Kong office rental
income, as office leasing demand remained weak.
There was a moderate decline in sales at the group's LANDMARK retail
portfolio, mainly due to some leakage of luxury retail sales to other
destinations, due to the strong dollar, as well as planned tenant movements
ahead of the announced transformation.
Combined contributions from Hongkong Land's CENTRAL series luxury retail malls
in Beijing and Macau were stable during the period, but market conditions have
recently become more challenging, with a meaningful reduction in luxury goods
sales in China in the second quarter.
The group's office portfolio in Singapore saw moderate rental growth,
supported by low vacancies and limited new supply.
On the Chinese mainland, residential sales continued to be impacted by low
consumer confidence, although sales performances varied between different
cities, with demand for well-located projects remaining healthy. In the
first half of the year, the group fully sold all residential units in its
flagship West Bund, Shanghai development.
Deteriorating market conditions prompted an extensive review of the pricing
and competitive positioning of the group's Development Properties projects,
resulting in significant non-cash provisions against the carrying value of
selected projects, mostly in non-prime locations in Wuhan, Nanjing and
Chongqing. Excluding provisions, contributions from Development Properties
were significantly lower than the prior period, due to the timing of project
completions.
Profit contributions from residential development projects in Singapore and
the rest of South East Asia were lower compared to the same period in 2023.
Despite the weak first half performance, the group's fundamentals remain
sound, supported by a strong balance sheet and resilient operating cash flows
from its Investment Properties portfolio. As previously announced, Michael
Smith was appointed as the new Chief Executive of Hongkong Land in the period,
and he is leading a comprehensive review of the group's overall business
strategy and commercial priorities, which is expected to be completed by the
end of the year.
Financial Position
The balance sheet and liquidity of both the Group and the parent company
remain strong.
Shareholders' funds were US$28.2 billion at 30 June 2024, compared with
US$29.0 billion at 31 December 2023.
Consolidated net debt excluding financial services companies was US$8.0
billion at 30 June 2024, representing gearing of 15%, no change from 31
December 2023.
The Group had liquidity of US$11.8 billion as at 30 June 2024, consisting of
US$5.1 billion in cash reserves and US$6.7 billion in unused, committed debt
facilities.
Jardine Matheson Holdings Limited
Consolidated Profit and Loss Account
(unaudited) Year ended 31 December
Six months ended 30 June
2024 2023 2023
Underlying Non-trading Total Underlying Non-trading Total Underlying Non-trading Total
business items US$m business items US$m business items US$m
restated
performance US$m performance US$m performance US$m
US$m US$m US$m
restated
Revenue 17,280 - 17,280 18,207 - 18,207 36,049 - 36,049
(note 2)
Net operating costs (note 3) (15,548) (130) (15,678) (16,055) 135 (15,920) (31,760) (75) (31,835)
Change in fair value of investment properties - (956) (956) - (852) (852) - (1,779) (1,779)
Operating profit 1,732 (1,086) 646 2,152 (717) 1,435 4,289 (1,854) 2,435
Net financing charges
- financing charges (405) - (405) (349) - (349) (769) - (769)
- financing income 133 - 133 126 - 126 253 - 253
(272) - (272) (223) - (223) (516) - (516)
Share of results of associates and joint ventures
(note 4)
- before change in fair value of investment properties 405 10 415 647 112 759 1,261 107 1,368
- change in fair value of investment properties - 54 54 - (9) (9) - 18 18
405 64 469 647 103 750 1,261 125 1,386
Profit before tax 1,865 (1,022) 843 2,576 (614) 1,962 5,034 (1,729) 3,305
Tax (note 5) (399) 3 (396) (456) (5) (461) (932) (11) (943)
Profit after tax 1,466 (1,019) 447 2,120 (619) 1,501 4,102 (1,740) 2,362
Attributable to:
Shareholders of the Company 550 (590) (40) 823 (257) 566 1,661 (975) 686
(notes 6 & 7)
Non-controlling interests 916 (429) 487 1,297 (362) 935 2,441 (765) 1,676
1,466 (1,019) 447 2,120 (619) 1,501 4,102 (1,740) 2,362
US$ US$ US$ US$ US$ US$
Earnings/(loss) per share (note 6)
- basic 1.91 (0.14) 2.84 1.95 5.74 2.37
- diluted 1.90 (0.14) 2.84 1.95 5.73 2.37
Jardine Matheson Holdings Limited
Consolidated Statement of Comprehensive Income
(unaudited) Year ended
Six months ended 31 December
30 June
2024 2023 2023
US$m US$m US$m
Profit for the period 447 1,501 2,362
Other comprehensive (expense)/income
Items that will not be reclassified to profit or loss:
Net exchange translation (loss)/gain arising during the period (425) 239 88
Remeasurements of defined benefit plans - - (18)
Net revaluation surplus before transfer to investment properties
- tangible assets - - 1
- right-of-use assets 97 - 63
Tax on items that will not be reclassified - - 4
(328) 239 138
Share of other comprehensive (expense)/income of associates and joint ventures (252) (22) 24
(580) 217 162
Items that may be reclassified subsequently to profit or loss:
Net exchange translation differences
- net (loss)/gain arising during the period (251) 51 29
- transfer to profit and loss 58 113 111
(193) 164 140
Revaluation of other investments at fair value through other comprehensive
income
- net (loss)/gain arising during the period (10) 1 (12)
Cash flow hedges
- net gain/(loss) arising during the period 3 (34) (40)
- transfer to profit and loss (20) (7) (36)
(17) (41) (76)
Tax relating to items that may be reclassified - 3 9
Share of other comprehensive expense of associates and joint ventures (303) (130) (78)
(523) (3) (17)
Other comprehensive (expense)/income for the period, net of tax (1,103) 214 145
Total comprehensive (expense)/income for the period (656) 1,715 2,507
Attributable to:
Shareholders of the Company (500) 562 729
Non-controlling interests (156) 1,153 1,778
(656) 1,715 2,507
Jardine Matheson Holdings Limited
Consolidated Balance Sheet
(unaudited)
At 30 June At 31 December
2024 2023 2023
US$m US$m US$m
restated
Assets
Intangible assets 2,140 2,501 2,274
Tangible assets 6,321 6,077 6,585
Right-of-use assets 3,955 3,987 4,080
Investment properties 29,285 30,866 30,166
Bearer plants 452 490 481
Associates and joint ventures 17,933 17,270 18,473
Other investments 3,261 2,973 3,329
Non-current debtors 3,806 3,747 3,833
Deferred tax assets 591 646 644
Pension assets 10 15 8
Non-current assets 67,754 68,572 69,873
Properties for sale 2,944 3,515 3,480
Stocks and work in progress 3,099 3,182 3,664
Current debtors 6,487 7,156 6,691
Current investments 44 56 55
Current tax assets 154 146 159
Cash and bank balances
- non-financial services companies 4,806 5,128 4,519
- financial services companies 321 410 361
5,127 5,538 4,880
17,855 19,593 18,929
Assets classified as held for sale 83 139 380
Current assets 17,938 19,732 19,309
Total assets 85,692 88,304 89,182
(unaudited) At 31 December
At 30 June
2024 2023 2023
US$m US$m US$m
restated
Equity
Share capital 73 73 72
Share premium and capital reserves 18 23 22
Revenue and other reserves 28,088 28,910 28,916
Shareholders' funds 28,179 29,006 29,010
Non-controlling interests 25,204 26,669 26,921
Total equity 53,383 55,675 55,931
Liabilities
Long-term borrowings
- non-financial services companies 10,623 8,988 9,486
- financial services companies 1,534 1,675 1,647
12,157 10,663 11,133
Non-current lease liabilities 2,791 2,884 2,966
Deferred tax liabilities 758 750 862
Pension liabilities 364 386 370
Non-current creditors 313 219 268
Non-current provisions 364 351 359
Non-current liabilities 16,747 15,253 15,958
Current borrowings
- non-financial services companies 2,190 3,073 3,419
- financial services companies 2,317 2,066 2,094
4,507 5,139 5,513
Current lease liabilities 733 715 754
Current tax liabilities 340 507 471
Current creditors 9,786 10,812 10,308
Current provisions 195 203 203
15,561 17,376 17,249
Liabilities directly associated with assets classified as held for sale 1 - 44
Current liabilities 15,562 17,376 17,293
Total liabilities 32,309 32,629 33,251
Total equity and liabilities 85,692 88,304 89,182
Jardine Matheson Holdings Limited
Consolidated Statement of Changes in Equity
Share Share Capital Revenue Asset revaluation reserves Hedging Exchange Attributable to shareholders of the Company Attributable Total
capital premium reserves reserves US$m reserves reserves US$m to non-controlling interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
Six months ended 30 June 2024 (unaudited)
At 1 January 2024 72 - 22 29,009 2,323 11 (2,427) 29,010 26,921 55,931
Total comprehensive expense - - - (44) 77 (13) (520) (500) (156) (656)
Dividends paid by the Company (note 8) - - - (477) - - - (477) - (477)
Dividends paid to non-controlling interests - - - - - - - - (979) (979)
Employee share option schemes - - 4 - - - - 4 1 5
Scrip issued in lieu of dividends 1 (1) - 156 - - - 156 - 156
Repurchase of shares - - - (101) - - - (101) - (101)
Share purchased for a share-based incentive plan in a subsidiary - - - (2) - - - (2) (1) (3)
Change in interests in subsidiaries - - - 67 - - - 67 (582) (515)
Change in interests in associates and joint ventures - - - 22 - - - 22 - 22
Transfer - 1 (8) 70 (1) - (62) - - -
At 30 June 2024 73 - 18 28,700 2,399 (2) (3,009) 28,179 25,204 53,383
Six months ended 30 June 2023 (unaudited)
At 1 January 2023 (restated) 73 - 26 28,911 2,272 55 (2,487) 28,850 27,410 56,260
Total comprehensive income - - - 567 - (27) 22 562 1,153 1,715
Dividends paid by the Company (note 8) - - - (463) - - - (463) - (463)
Dividends paid to non-controlling interests - - - - - - - - (1,735) (1,735)
Employee share option schemes - - 1 - - - - 1 1 2
Scrip issued in lieu of dividends 1 (1) - 132 - - - 132 - 132
Repurchase of shares (1) - - (135) - - - (136) - (136)
Capital contribution from non-controlling interests - - - - - - - - 3 3
Subsidiaries disposed of - - - - - - - - 10 10
Change in interests in subsidiaries - - - 65 - - - 65 (170) (105)
Change in interests in associates and joint ventures - - - (5) - - - (5) (3) (8)
Transfer - 1 (4) 3 - - - - - -
At 30 June 2023 (restated) 73 - 23 29,075 2,272 28 (2,465) 29,006 26,669 55,675
Share Share Capital Revenue Asset Hedging Exchange Attributable to shareholders of the Company Attributable Total
capital premium US$m reserves reserves revaluation reserves reserves US$m to non-controlling interests equity
US$m US$m US$m reserves US$m US$m US$m US$m
US$m
Year ended 31 December 2023
At 1 January 2023 73 - 26 28,911 2,272 55 (2,487) 28,850 27,410 56,260
Total comprehensive income - - - 662 51 (44) 60 729 1,778 2,507
Dividends paid by the Company - - - (637) - - - (637) - (637)
Dividends paid to non-controlling interests - - - - - - - - (2,037) (2,037)
Unclaimed dividends forfeited - - - 2 - - - 2 1 3
Employee share option schemes - - 10 - - - - 10 3 13
Scrip issued in lieu of dividends - (1) - 183 - - - 182 - 182
Repurchase of shares (1) - - (208) - - - (209) - (209)
Capital contribution from non-controlling interests - - - - - - - - 41 41
Share purchased for a share-based incentive plan in a subsidiary - - - - - - (7) (2) (9)
(7)
Subsidiaries acquired - - - - - - - - 37 37
Subsidiaries disposed of - - - - - - - - 5 5
Change in interests in subsidiaries - - - 75 - - - 75 (315) (240)
Change in interests in associates and joint ventures - - - 15 - - - 15 - 15
Transfer - 1 (14) 13 - - - - - -
At 31 December 2023 72 - 22 29,009 2,323 11 (2,427) 29,010 26,921 55,931
Jardine Matheson Holdings Limited
Consolidated Cash Flow Statement
(unaudited) Year ended
Six months ended 31 December
30 June
2024 2023 2023
US$m US$m US$m
Operating activities
Cash generated from operations 3,292 3,189 5,549
Interest received 113 108 217
Interest and other financing charges paid (411) (321) (758)
Tax paid (560) (743) (1,307)
2,434 2,233 3,701
Dividends from associates and joint ventures 535 513 883
Cash flows from operating activities 2,969 2,746 4,584
Investing activities
Purchase of subsidiaries - (31) (378)
Purchase of associates and joint ventures (note 10(a)) (111) (70) (1,166)
Purchase of other investments (note 10(b)) (161) (167) (671)
Purchase of intangible assets (46) (80) (114)
Purchase of tangible assets (590) (827) (1,667)
Additions to leasehold land under right-of-use assets (15) (5) (31)
Additions to investment properties (102) (82) (151)
Additions to bearer plants (15) (17) (35)
Advances to associates and joint ventures (note 10(c)) (69) (148) (455)
Repayments from associates and joint ventures (note 10(d)) 157 778 1,252
Sale of subsidiaries (note 10(e)) 280 303 365
Sale of associates and joint ventures 4 11 134
Sale of other investments (note 10(f)) 83 68 161
Sale of tangible assets 14 274 364
Sale of right-of-use assets 15 7 38
Cash flows from investing activities (556) 14 (2,354)
Financing activities
Capital contribution from non-controlling interests - 3 41
Acquisition of the remaining interest in Jardine Strategic (2) (3) (5)
Change in interests in other subsidiaries (note 10(g)) (505) (105) (240)
Purchase of own shares (101) (136) (209)
Purchase of shares for a share-based incentive plan in a subsidiary (3) - (9)
Drawdown of borrowings 6,382 5,175 9,873
Repayment of borrowings (5,994) (5,660) (9,475)
Principal elements of lease payments (427) (430) (856)
Dividends paid by the Company (321) (331) (455)
Dividends paid to non-controlling interests (974) (1,732) (2,037)
Cash flows from financing activities (1,945) (3,219) (3,372)
Net increase/(decrease) in cash and cash equivalents 468 (459) (1,142)
Cash and cash equivalents at beginning of period 4,796 5,879 5,879
Effect of exchange rate changes (174) 108 59
Cash and cash equivalents at end of period 5,090 5,528 4,796
Jardine Matheson Holdings Limited
Analysis of Profit Contribution
(unaudited) Year ended
Six months ended 31 December
30 June
2024 2023 2023
US$m US$m US$m
Reportable segments
Jardine Pacific 52 64 164
Zhongsheng(#) 63 89 139
Hongkong Land (4) 224 389
DFI Retail 58 26 120
Mandarin Oriental 19 22 65
Jardine Cycle & Carriage 15 37 102
Astra 394 417 786
597 879 1,765
Corporate and other interests (47) (56) (104)
Underlying profit attributable to shareholders* 550 823 1,661
Decrease in fair value of investment properties (521) (482) (1,066)
Other non-trading items (69) 225 91
(Loss)/profit attributable to shareholders (40) 566 686
Analysis of Jardine Pacific's contribution
Jardine Schindler 21 21 42
JEC 12 16 57
Gammon 19 17 45
Jardine Restaurants (6) (6) (15)
Transport Services 15 10 30
Zung Fu Hong Kong (3) 6 10
Corporate and other interests (6) - (5)
52 64 164
# Previously Jardine Motor Interests.
* 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.
There are no changes to the accounting policies as described in the 2023
annual financial statements. A number of amendments issued by the
International Accounting Standards Board were effective from 1 January 2024
and do not have significant impact on the Group's results, financial position
and accounting policies.
The Group adopted IFRS 17 'Insurance Contracts' ('IFRS 17') in 2023. Prior to
the adoption of IFRS 17, profits were recognised in the profit and loss on
initial recognition of certain insurance contracts. Under IFRS 17, all profits
are recognised in the profit and loss over the life of the contracts as
insurance services are provided. Whilst the net impact of the adoption of IFRS
17 was immaterial to the 2023 condensed interim financial statements for the
six months ended 30 June 2023, we have made restatements to the Group's
published financial statements for the six months ended 30 June 2023 to ensure
comparability with the IFRS 17 restatements made in the 2023 Annual Report.
The Group has not early adopted any standards, interpretations or amendments
that have been issued but not yet effective.
2. Revenue
Jardine Jardine
Jardine Motor Hongkong DFI Mandarin Cycle & Intersegment
Pacific Interests Land Retail 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 30 June 2024
By product and service:
Property 2 - 972 2 - - 27 (4) 999
Motor vehicles 260 - - - - 784 4,009 - 5,053
Retail and restaurants 412 - - 4,403 - - - - 4,815
Financial services - - - - - - 941 - 941
Engineering, heavy equipment, mining and construction 289 - - - - - 4,011 (19) 4,281
Hotels - - - - 251 - - (1) 250
Other* - - - - - - 941 - 941
963 - 972 4,405 251 784 9,929 (24) 17,280
Revenue from contracts with customers:
Recognised at a point in time 708 - 427 4,397 73 757 8,700 (24) 15,038
Recognised over time 254 - 94 6 169 23 127 - 673
962 - 521 4,403 242 780 8,827 (24) 15,711
Revenue from other sources:
Rental income from investment properties 1 - 451 2 - - 5 - 459
Revenue from financial services companies - - - - - - 941 - 941
Other - - - - 9 4 156 - 169
1 - 451 2 9 4 1,102 - 1,569
963 - 972 4,405 251 784 9,929 (24) 17,280
Six months ended 30 June 2023
By product and service:
Property 2 - 670 - - - 23 (4) 691
Motor vehicles 257 165 - - - 860 4,331 - 5,613
Retail and restaurants 423 - - 4,574 - - - - 4,997
Financial services - - - - - - 848 - 848
Engineering, heavy equipment, mining and construction
296 - - - - - 4,562 (22) 4,836
Hotels - - - - 261 - - (1) 260
Other* - - - - - - 962 - 962
978 165 670 4,574 261 860 10,726 (27) 18,207
Revenue from contracts with customers:
Recognised at a point in time 712 165 94 4,574 78 832 9,597 (27) 16,025
Recognised over time 264 - 9 - 174 24 148 - 619
976 165 103 4,574 252 856 9,745 (27) 16,644
Revenue from other sources:
Rental income from investment properties 2 - 464 - - - 7 - 473
Revenue from financial services companies
- - - - - - 848 - 848
Other - - 103 - 9 4 126 - 242
2 - 567 - 9 4 981 - 1,563
978 165 670 4,574 261 860 10,726 (27) 18,207
* Included revenue from Agribusiness and Infrastructure & Logistics of
US$643 million (2023: US$626 million) and US$228 million (2023: US$269
million), respectively.
3. Net Operating Costs
Six months ended 30 June
2024 2023
US$m US$m
Cost of sales (12,598) (13,130)
Other operating income 163 360
Selling and distribution costs (1,895) (1,957)
Administration expenses (1,140) (1,144)
Other operating expenses (208) (49)
(15,678) (15,920)
Cost of sales included a US$148 million (2023: nil) provision in Hongkong
Land's Chinese mainland development properties arising from a deterioration in
market conditions that resulted in projected sales prices being lower than
development costs. A corresponding deferred tax credit of US$5 million was
recognised.
Net operating costs included the following gains/(losses) from non-trading
items:
Change in fair value of other investments (30) 55
Sale of businesses (66) (1)
Sale of a hotel (32) -
Sale of property interests 6 82
Restructuring of businesses (5) 1
Other (3) (2)
(130) 135
4. Share of Results of Associates and Joint Ventures
Six months ended 30 June
2024 2023
US$m US$m
By business:
Jardine Pacific 59 55
Zhongsheng(#) 47 190
Hongkong Land (22) 155
DFI Retail 29 5
Mandarin Oriental 4 1
Jardine Cycle & Carriage 51 54
Astra 306 301
Corporate (5) (11)
469 750
Share of results of associates and joint ventures included a US$152 million
provision (2023: nil) on the Chinese mainland development properties in
Hongkong Land's property joint ventures, arising from a deterioration in
market conditions that resulted in projected sales prices being lower than
development costs.
Share of results of associates and joint ventures included the following
gains/(losses) from non-trading items:
Change in fair value of investment properties 54 (9)
Change in fair value of other investments 10 12
Sale of businesses 18 -
Amortisation charge on acquisition (19) -
Share of Zhongsheng's results from 1 July 2022 to 31 December 2022 (note 7) - 101
Other 1 (1)
64 103
Results are shown after tax and non-controlling interests in the associates
and joint ventures.
# Previously Jardine Motor Interests.
5. Tax
Six months ended 30 June
2024 2023
US$m US$m
Tax charged to profit and loss is analysed as follows:
Current tax (458) (571)
Deferred tax 62 110
(396) (461)
China (66) (59)
South East Asia (311) (391)
United Kingdom (1) (1)
Rest of the world (18) (10)
(396) (461)
Tax relating to components of other comprehensive income or expense is
analysed as follows:
Cash flow hedges - 3
Tax on profits has been calculated at rates of taxation prevailing in the
territories in which the Group operates.
The Group is within the scope of the OECD Pillar Two model rules, and has
applied the exception to recognising and disclosing information about deferred
tax assets and liabilities relating to Pillar Two income taxes from 1 January
2023. Pillar Two legislation has been enacted or substantially enacted in
certain jurisdictions in which the Group operates. The Group has assessed
that the income tax expense related to Pillar Two income taxes in the relevant
jurisdictions for the interim period is immaterial.
Share of tax charge of associates and joint ventures of US$108 million (2023:
US$140 million) is included in share of results of associates and joint
ventures. Share of tax charge of US$2 million (2023: US$1 million) is
included in other comprehensive income of associates and joint ventures.
6. Earnings/(loss) per Share
Basic earnings/(loss) per share are calculated on loss attributable to
shareholders of US$40 million (2023: profit of US$566 million) and on the
weighted average number of 289 million (2023: 290 million) shares in issue
during the period.
Diluted earnings/(loss) per share are calculated on loss attributable to
shareholders of US$40 million (2023: profit of US$566 million), which is after
adjusting for the effects of the conversion of dilutive potential ordinary
shares of subsidiaries and on the weighted average number of 289 million
(2023: 290 million) shares in issue during the period. There was no shares
deemed to be issued for no consideration for the calculation of diluted
earnings/(loss) per share under the Senior Share Executive Incentive Schemes
for the six months ended 30 June 2024 and 2023.
Additional basic and diluted earnings per share are also calculated based on
underlying profit attributable to shareholders. A reconciliation of earnings
is set out below:
Six months ended 30 June
2024 2023
US$m Basic Diluted US$m Basic Diluted earnings per share
(loss)/
(loss)/ earnings per share
earnings per share US$
earnings per share US$ US$
US$
(Loss)/profit attributable to shareholders (40) (0.14) (0.14) 566 1.95 1.95
Non-trading items (note 7) 590 257
Underlying profit attributable to shareholders 550 1.91 1.90 823 2.84 2.84
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 equity and debt 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 30 June
2024 2023
Profit before tax Attributable to shareholders Profit before tax Attributable to shareholders
US$m US$m US$m US$m
By business:
Jardine Pacific (3) (3) 35 35
Zhongsheng/Jardine Motor Interests (16) (16) 153 153
Hongkong Land (810) (440) (752) (402)
DFI Retail (42) (32) (23) (19)
Mandarin Oriental (119) (92) (141) (113)
Jardine Cycle & Carriage 9 3 59 45
Astra (52) (21) 16 5
Corporate and other interests 11 11 39 39
(1,022) (590) (614) (257)
Change in fair value of investment properties
- Hongkong Land (810) (440) (752) (402)
- other (92) (81) (109) (80)
(902) (521) (861) (482)
Change in fair value of other investments (20) 4 67 54
Sale of businesses (48) (37) (1) 11
Sale of a hotel (32) (28) - -
Sale of property interests 6 4 82 61
Restructuring of businesses (5) (4) 1 1
Amortisation charge on acquisition (19) (19) - -
Write-back of deferred tax liabilities - 13 - -
Share of Zhongsheng's results from - - 101 101
1 July 2022 to 31 December 2022
Other (2) (2) (3) (3)
(1,022) (590) (614) (257)
Zhongsheng's interim and annual results have historically been reported after
the Group's results announcements. In previous years, the Group had
recognised its 21% share of Zhongsheng's results based on publicly available
reported results as at the Group's reporting date and the results were
reported six months in arrear. From 2023, however, the Group had determined
that a better representation of Zhongsheng's current performance would be
given using management's estimate of its share of Zhongsheng's results on a
calendar year basis, based on an average of recent external analyst estimates.
This change had been adopted prospectively from 1 January 2023 as a change in
estimate such that the Group's results for the six months ended 30 June 2023
included its share of Zhongsheng's results for a twelve-month period from 1
July 2022 to 30 June 2023. The Group's share of Zhongsheng's results for the
six months ended 30 June 2023 were presented as underlying profit, and the
results for 1 July 2022 to 31 December 2022 had been presented as a
non-trading item so as not to distort the underlying performance of the
period.
8. Dividends
Six months ended 30 June
2024 2023
US$m US$m
Final dividend in respect of 2023 of US$1.65 477 463
(2022: US$1.60) per share
An interim dividend in respect of 2024 of US$0.60 (2023: US$0.60) per share
amounting to a total of US$174 million (2023: US$174 million) is declared by
the Board and will be accounted for as an appropriation of revenue reserves in
the year ending 31 December 2024.
9. Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities, together with
carrying amounts at 30 June 2024 and 31 December 2023 are as follows:
Fair value of hedging instruments Fair value through profit and loss Fair value through other comprehensive income Financial assets at amortised costs Other financial liabilities Total Fair
US$m US$m US$m US$m US$m carrying value
amount US$m
US$m
30 June 2024
Financial assets measured at
fair value
Amounts due from associates - - - 457 - 457 457
Amounts due from joint ventures - - - 1,842 - 1,842 1,842
Other investments
- equity investments - 1,666 - - - 1,666 1,666
- debt investments - 406 905 - - 1,311 1,311
- limited partnership investment funds - 328 - - - 328 328
Derivative financial instruments 105 - - - - 105 105
105 2,400 905 2,299 - 5,709 5,709
Financial assets not measured at
fair value
Debtors - - - 8,439 - 8,439 8,086
Bank balances - - - 5,127 - 5,127 5,127
- - - 13,566 - 13,566 13,213
Financial liabilities measured at
fair value
Derivative financial instruments (65) - - - - (65) (65)
Contingent consideration payable - (11) - - - (11) (11)
(65) (11) - - - (76) (76)
Financial liabilities not measured at
fair value
Borrowings - - - - (16,664) (16,664) (16,448)
Lease liabilities - - - - (3,524) (3,524) (3,524)
Trade and other - - - - (7,724) (7,724) (7,724)
payable excluding non-financial liabilities
- - - - (27,912) (27,912) (27,696)
Financial instruments by category
Fair value of hedging instruments Fair value through profit and loss Fair value through other comprehensive income Financial assets at amortised costs Other financial liabilities Total Fair
US$m US$m US$m US$m US$m carrying value
amount US$m
US$m
31 December 2023
Financial assets measured at
fair value
Amounts due from associates - - - 466 - 466 466
Amount due from joint ventures - - - 1,923 - 1,923 1,923
Other investments
- equity investments - 1,750 - - - 1,750 1,750
- debt investments - 418 916 - - 1,334 1,334
- limited partnership investment funds - 300 - - - 300 300
Derivative financial instruments 73 - - - - 73 73
73 2,468 916 2,389 - 5,846 5,846
Financial assets not measured at
fair value
Debtors - - - 8,668 - 8,668 8,128
Bank balances - - - 4,880 - 4,880 4,880
- - - 13,548 - 13,548 13,008
Financial liabilities measured at
fair value
Derivative financial instruments (70) - - - - (70) (70)
Contingent consideration payable - (11) - - - (11) (11)
(70) (11) - - - (81) (81)
Financial liabilities not measured at
fair value
Borrowings - - - - (16,646) (16,646) (16,195)
Lease liabilities - - - - (3,720) (3,720) (3,720)
Trade and other - - - - (7,998) (7,998) (7,998)
payable excluding non-financial liabilities
- - - - (28,364) (28,364) (27,913)
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 and debt investments, and limited
partnership 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 30
June 2024 and the year ended 31 December 2023.
The table below analyses financial instruments carried at fair value at 30
June 2024 and 31 December 2023, by the levels in the fair value measurement
hierarchy:
Quoted Observable current market transactions Unobservable inputs Total
prices in active markets US$m US$m US$m
US$m
30 June 2024
Assets
Other investments
- equity investments 1,430 57 179 1,666
- debt investments 905 - 406 1,311
- limited partnership investment funds - - 328 328
2,335 57 913 3,305
Derivative financial instruments at - 105 - 105
fair value through other comprehensive income
2,335 162 913 3,410
Liabilities
Contingent consideration payable - - (11) (11)
Derivative financial instruments at - (65) - (65)
fair value through other comprehensive income
- (65) (11) (76)
31 December 2023
Assets
Other investments
- equity investments 1,495 56 199 1,750
- debt investments 916 - 418 1,334
- limited partnership investment funds - - 300 300
2,411 56 917 3,384
Derivative financial instruments at
fair value
- through other comprehensive income - 71 - 71
- through profit and loss - 2 - 2
2,411 129 917 3,457
Liabilities
Contingent consideration payable - - (11) (11)
Derivative financial instruments at - (70) - (70)
fair value through other comprehensive income
- (70) (11) (81)
There were no transfers among the three categories for the six months ended 30
June 2024 and year ended 31 December 2023.
Movement of unlisted equity and debt investments, and limited partnership
investment funds, which are valued based on unobservable inputs during the
year ended 31 December 2023 and six months ended 30 June 2024 are as follows:
US$m
At 1 January 2023 518
Exchange differences 18
Additions 398
Disposals (4)
Reclassification of other investments to associates and joint ventures (35)
Net change in fair value during the year included in profit and loss 22
At 31 December 2023 and 1 January 2024 917
Exchange differences (23)
Additions 26
Net change in fair value during the period included in profit and loss (7)
At 30 June 2024 913
(ii) Financial instruments that are not measured at fair value
The fair values of current debtors, cash and bank balances, 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 30
June 2024 mainly included US$81 million and US$21 million for Astra's
acquisition of a 20% interest in PT Supreme Energy Rantau Dedap and capital
injection into PT Bank Jasa Jakarta, respectively.
Purchases for the six months ended 30 June 2023 mainly included
US$26 million for Hongkong Land's investment in the Chinese mainland; US$8
million for Jardine Cycle & Carriage's additional interest in
Refrigeration Electrical Engineering Corporation and US$26 million for Astra's
acquisition of a 25% interest in PT Equinix Indonesia Jkt.
(b) Purchase of other investments for the six months ended 30 June 2024
mainly included Astra's acquisition of securities of US$134 million; and
Corporate's additional investments in limited partnership investment funds for
US$25 million.
Purchases for the six months ended 30 June 2023 mainly included
Astra's acquisition of securities of US$152 million; and Corporate's
additional investments in limited partnership investment funds for US$13
million.
(c) Advances to associates and joint ventures for the six months ended 30
June 2024 comprised Hongkong Land's advances to its property joint ventures.
Advances to associates and joint ventures for the six months
ended 30 June 2023 included Hongkong Land's advances to its property joint
ventures of US$127 million and Mandarin Oriental's advance to its associate
hotel of US$21 million.
(d) Repayments from associates and joint ventures for the six months ended
30 June 2024 comprised Hongkong Land's repayments from its property joint
ventures.
Repayments from associates and joint ventures for the six
months ended 30 June 2023 mainly included Hongkong Land's repayments from its
property joint ventures of US$710 million and Mandarin Oriental's repayments
from its associate and joint venture hotels of US$66 million.
(e) Sale of subsidiaries
Six months ended 30 June
2024 2023
US$m US$m
Non-current assets 326 398
Current assets 53 458
Non-current liabilities (36) (285)
Current liabilities (29) (406)
Non-controlling interests 5 10
Net assets 319 175
Cumulative exchange translation losses 54 113
(Loss)/profit on disposal (94) 6
Deferred gain on sale and leaseback of a property 5 -
Sales proceeds 284 294
Consideration settled and payable - 54
Transaction costs payable - 10
Cash and cash equivalents of subsidiaries disposed of (4) (55)
Net cash inflow 280 303
Net cash inflow for sale of subsidiaries for the six months ended 30 June 2024
included US$57 million from DFI Retail's sale of DFI properties, a property
holding company in Taiwan, and US$216 million from Mandarin Oriental's sale of
a hotel in Paris (the 'Paris Hotel').
Net cash inflow for the six months ended 30 June 2023 comprised US$359 million
inflow from Jardine Motor Interests' sale of its United Kingdom operation and
US$56 million cash outflow from DFI Retail's divestment of its Malaysian
grocery retail business.
(f) Sale of other investments for the six months ended 30 June 2024 and
2023 mainly included sale of securities in Astra.
(g) Change in interests in subsidiaries
Six months ended 30 June
2024 2023
US$m US$m
Increase in attributable interests
- Hongkong Land - (55)
- Jardine Cycle & Carriage (395) (32)
- Mandarin Oriental (110) (18)
(505) (105)
11. Capital Commitments and Contingent Liabilities
Total capital commitments at 30 June 2024 and 31 December 2023 amounted to
US$2,617 million and US$2,283 million, respectively.
Following the acquisition of the 15 per cent of Jardine Strategic not
previously owned by the Company and its wholly-owned subsidiaries, which was
effected on 14 April 2021, a number of former Jardine Strategic shareholders
are seeking an appraisal of the fair value of their shares in Jardine
Strategic by the Bermuda court, relying upon the process referred to in the
shareholder circular issued in connection with the acquisition. These
shareholders claim the consideration of US$33 per share that Jardine Strategic
considered to be fair value for its shares, and that all shareholders have
already received, did not represent fair value. Although the proceedings
were commenced in April 2021, they are still ongoing. It is anticipated that
the court appraisal process will not be concluded for at least a further 12
months and will likely extend further. The Board believes that the US$33 per
share that was paid represented fair value to Jardine Strategic minority
shareholders and is of the opinion that no provision is required in relation
to these claims.
Various Group companies are involved in litigation arising in the ordinary
course of their respective businesses. Having reviewed outstanding claims
and taking into account legal advice received, the Directors are of the
opinion that adequate provisions have been made in the condensed financial
statements.
12. Related Party Transactions
In the normal course of business the Group undertakes a variety of
transactions with certain of its associates and joint ventures.
Six months ended 30 June
2024 2023
US$m US$m
Sales to associates and joint ventures
- motor vehicles and spare parts 355 442
- coal 363 603
- crude palm oil 100 189
818 1,234
Purchase from associates and joint ventures
- motor vehicles and spare parts 2,799 3,254
There were no other related party transactions that were 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
In June 2024, the Group's subsidiary, Mandarin Oriental, signed an option to
sell the two retail units adjoining the Paris Hotel, which was sold earlier in
the year (refer note 10(e)), at a total consideration of US$160 million. The
transaction was completed in July 2024. The profit attributable to the Group
of US$49 million will be recognised in the second half of 2024.
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.
● Political and economic risk
● Customers' changing behaviours and market competition
● Investment, partnerships and franchise rights
● IT, facilities and cybersecurity
● Geographic concentration risk
● Talent and labour
● Climate physical and transition risk
● Change management, cultural agility and strategic initiatives
● Third-party service provider and supply chain management
● Health, safety and product quality
● Compliance with and changes to laws and regulations
● Customer exposures and claims on customers
● Financial strength and funding
● Governance and misconduct
For greater detail, please refer to pages 88 to 96 of the Company's 2023
Annual Report, a copy of which is available on the Company's website at
www.jardines.com.
Responsibility Statements
The Directors of the Company confirm to the best of their knowledge that:
(a) the condensed financial statements prepared in accordance with
IAS 34 'Interim Financial Reporting', give a true and fair view of the assets,
liabilities, financial position and profit and losses of the Group; and
(b) the interim management report includes a fair review of all
information required to be disclosed under Rules 4.2.7 and 4.2.8 of the
Disclosure Guidance and Transparency Rules 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 US$0.60 per share will be payable on 16 October 2024
to shareholders on the register of members at the close of business on 23
August 2024. The shares will be quoted ex-dividend on 22 August 2024 and the
share registers will be closed from 26 to 30 August 2024, 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 2024 interim dividend by notifying the United
Kingdom transfer agent in writing by 27 September 2024. The Sterling
equivalent of dividends declared in United States Dollars will be calculated
by reference to a rate prevailing on 2 October 2024.
Shareholders holding their shares through CREST in the United Kingdom will
receive their cash dividends in Sterling only as calculated above.
Shareholders on the Singapore branch register who hold their shares through
The 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 23 August 2024, must
submit the relevant documents to Boardroom Corporate & Advisory Services
Pte. Ltd., the Singapore branch registrar, by no later than 5.00 p.m. (local
time) on 22 August 2024.
The Jardine Matheson Group
Jardine Matheson is a diversified Asian-based group founded in China in 1832,
with unsurpassed experience in the region. Its broad portfolio of
market-leading businesses is well-positioned to capture the themes of
urbanisation and the rising middle-income population in Asia. The Group's
businesses aim to produce sustainable returns by providing their customers
with high quality products and services. The Group is committed to driving
long-term sustainable success in our businesses and our communities.
Jardine Matheson operates principally in China and South East 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%), Hongkong Land
(53.3%), DFI Retail Group (77.5%), Mandarin Oriental (85.3%), Zhongsheng Group
(21.2%) and Jardine Cycle & Carriage (83.1%) ('JC&C'). JC&C in
turn has a 50.1% shareholding in Astra.
Jardine Matheson Holdings Limited is incorporated in Bermuda and has a primary
listing in the equity shares (transition) category of 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
Graham Baker / Suzanne Cheuk (852) 2843 8218 / 8262
Brunswick Group Limited
William Brocklehurst (852) 5685 9881
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-Year Results announcement for the six
months ended 30 June 2024 to shareholders. This Half-Year Results announcement
will be made available on the Company's website, www.jardines.com, together
with other Group announcements.
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