TIDMJAR

RNS Number : 0676U

Jardine Matheson Hldgs Ltd

28 July 2022

28th July 2022

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

Half-Year Results for the Six Months ended 30th June 2022

STRONG RECOVERY CONTINUES, UNCERTAINTY REMAINS IN CHINA

Highlights

 
 --   Underlying profit of US$747 million for the period, up 22% against the prior year 
 --   Underlying earnings per share of US$2.60, up 40% against 2021 
 --   Performance of most businesses improves, with strong growth in Southeast Asia, particularly by 
       Astra, and further contribution from simplification of the Group's holding structure 
 --   Hong Kong and Chinese mainland businesses impacted by continuing pandemic restrictions 
 --   DFI Retail profit reduced by performance of associates and investment in e-commerce 
 --   Interim dividend at US c 55, up 25%, reflecting a rebalance towards interim as well as strong earnings 
       per share growth. 
 

" There was a strong improvement in the Group's profitability in the first half compared with the same period last year, with a significantly improved performance in Southeast Asia, particularly by Astra, and a further contribution to growth from the simplification of the Group's holding structure. The Group expects, however, that earnings growth will substantially moderate for the full year, as COVID-19 continues to impact the Group's businesses, particularly in Hong Kong and on the Chinese mainland.

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

The Group has a strong balance sheet and will continue to focus on opportunities in its core, growing markets of Asia to create sustainable long-term growth."

Ben Keswick, Executive Chairman

Results

 
                                                                                             (unaudited) 
                                                                              Six months ended 30th June 
                                                                  2022                              2021  Change 
                                                                  US$m                              US$m       % 
------------------------------------  --------------------------------  --------------------------------  ------ 
  Gross revenue including 100% of 
   associates 
   and joint ventures                                           55,994                            52,488      +7 
  Revenue                                                       18,277                            17,492      +4 
  Underlying profit* attributable to 
   shareholders                                                    747                               615     +22 
  Profit/(loss) attributable to 
   shareholders                                                    423                             (117)     n/a 
  Shareholders' funds(#)                                        29,228                            29,781      -2 
------------------------------------  --------------------------------  --------------------------------  ------ 
                                                                   US$                               US$       % 
------------------------------------  --------------------------------  --------------------------------  ------ 
  Underlying earnings per share*                                  2.60                              1.86     +40 
  Earnings/(loss) per share                                       1.47                            (0.35)     n/a 
  Net asset value per share(#)                                  101.00                            102.87      -2 
                                                                   USc                               USc       % 
------------------------------------  --------------------------------  --------------------------------  ------ 
  Interim dividend per share                                     55.00                             44.00     +25 
------------------------------------  --------------------------------  --------------------------------  ------ 
 *                                    The Group uses 'underlying profit' in its internal financial 
                                       reporting to distinguish between ongoing business performance 
                                       and non-trading items, as more fully described in note 
                                       7 to the condensed financial statements. Management considers 
                                       this to be a key measure which provides additional information 
                                       to enhance understanding of the Group's underlying business 
                                       performance 
 #                                    At 30th June 2022 and 31st December 2021, respectively. 
                                       Net asset value per share is based on the book value of 
                                       shareholders' funds. 
-----------------------------------  ------------------------------------------------------------------- 
 
 

The interim dividend of USc55.00 per share will be payable on 12th October 2022 to shareholders on the register of members at the close of business on 19th August 2022 and will be available in cash with a scrip alternative.

CHAIRMAN'S STATEMENT

Overview

The Group's underlying net profit for the first half was US$747 million, 22% higher than the same period last year, and returning to the levels seen prior to the onset of the pandemic. Within this, 13 percentage-points of growth was driven by improved business performance, with the balance reflecting a higher share of earnings in businesses formerly owned by Jardine Strategic Holdings Limited ('JSH'), following the completion in mid-April 2021 of the privatisation of JSH (the 'Group Simplification').

There were improved performances from most of the Group's businesses in the first half of 2022, compared with the same period last year, with particularly strong growth in Southeast Asia, led by Astra. Jardine Cycle & Carriage ('JC&C'), the Group's Motors business and Hongkong Land also saw increases in underlying profit, and Mandarin Oriental delivered a lower underlying loss than the same period last year.

DFI Retail Group ('DFI') saw a decline year-on-year in the performance of their businesses, impacted by the resurgence in the first half of the pandemic on the Chinese mainland and in Hong Kong. The absence of Chinese mainland tourists also continued to impact the performance of the Group's businesses in Hong Kong, including Hongkong Land's Central retail portfolio, DFI's health and beauty business and Mandarin Oriental's hotels.

The Group continues to benefit from its diversified exposure to the key growth markets of Asia, with the different pathways of China and Southeast Asia across the pandemic bringing resilience to our earnings and growth. The strong performance of the Group's businesses in Southeast Asia in the first half of 2022 led to 58% of the Group's profit for the period coming from Southeast Asia and 37% coming from China.

Underlying earnings per share increased by 40% to US $2.60. Just over half of this growth (+24 percentage-points) reflected impacts of the Group Simplification, combining the effect on underlying net profits of a higher share of earnings, as above, with the reduction in the effective share count in Jardine Matheson Holdings Limited (the 'Company') following the elimination of the cross-shareholding held by JSH in the Company, which concluded in May 2022 and has now, therefore, fully annualised.

Group revenue for the period was 4% higher at US$18.3 billion, while gross revenue, including 100% of associates and joint ventures, was up 7% at US$56.0 billion.

The Group recorded a non-trading net loss in the first half of US$324 million, compared with a non-trading net loss of US$732 million in the first half of 2021. This was as a result of a net decrease of US$148 million in the fair value of the Group's other investments, the impairment of goodwill and investment in associates of US$114 million, and a net fair value loss of US$70 million upon the semi-annual revaluation of investment properties in Hongkong Land as at 30(th) June 2022. The Group recorded a profit attributable to shareholders for the period of US$423 million, compared with a loss of US$117 million in the first half of 2021.

Dividend

The Board has announced an interim dividend of USc55 per share, an increase of 25% over the prior year. This reflects both the strong EPS growth in the first half of the year and the Board's decision to revert to a higher proportion of the total dividend for the year to be paid at interim as the effects of the pandemic and the impacts of the Group Simplification recede.

Significant Developments

The first half of the year continued to demonstrate the importance of the Group applying innovation and adaptability in its business approach. The pace of change continues to accelerate, however, so we need to further drive forward our strategic priorities in the second half of the year.

Evolving the Group Portfolio

The Group remains focussed on evolving its portfolio by deploying and, where appropriate, recycling capital towards strategic higher growth initiatives.

During the first half, Astra purchased a 5.43% stake in PT Medikaloka Hermina Tbk, one of the largest hospital groups in Indonesia, operating as Hermina Hospitals, which has an established brand in women's and children's care.

In February 2022, a joint venture was announced between Astra, Hongkong Land and LOGOS, a leading modern warehousing expert, to expand logistics facilities across Indonesia.

Astra continues to invest in digital businesses in Indonesia, and in the period it acquired an interest in Paxel, a technology-based logistics startup, and increased its investments in Sayurbox, an e-commerce grocery farm-to-table platform and Mapan, a digital community-based social financing platform. In July 2022, Astra subscribed for a 49.56% stake in PT Bank Jasa Jakarta ('Bank Jasa Jakarta') for US$260 million, to support Astra Financial Services' business development and digital offering. The transaction is subject to satisfaction of conditions precedent and regulatory approval.

During the period, Hongkong Land secured a 34% interest in a primarily residential site in Xuhui District in Shanghai, adjacent to the group's existing 1.1 million sq. m. mixed-used project in West Bund. It also acquired a 49% interest in a residential site in the Tanjong Katong area in Singapore, with a developable area of 599,000 sq. ft.

In July 2022, JC&C announced a general offer to acquire the remaining shares in Cycle & Carriage Bintang, which it did not already own. JC&C also increased its interest in Refrigeration Electrical Engineering Corporation ('REE') in the period through on-market purchases.

In July 2022, United Tractors announced a share buyback of up to US$333 million.

Also in July 2022, Mandarin Oriental announced the sale of its Washington DC hotel for gross proceeds of US$139 million. This sale is consistent with the Group's strategy of driving future growth primarily through development of its management business. The Group has an exciting pipeline of hotels worldwide in locations and properties which support its long-term vision for the brand.

Driving Innovation and Operational Excellence

The Group also continues to focus on driving innovation and operational excellence in our businesses and in new ventures we undertake. Despite the challenging market environment, our businesses continued to introduce greater efficiency and productivity.

We have been embedding innovation-thinking across our businesses, underscored by events such as Digital Day and LearnFest, where innovation-related themes are central to the agenda.

DFI's yuu coalition loyalty programme continues to exceed expectations and now has more than four million members. It has built partnerships with a range of complementary businesses, including Maxim's restaurants, insurance partners and, most recently, in February 2022, a fuel partner. In May 2022, yuu-to-me was launched, offering customers an integrated one-stop online shopping experience across leading Hong Kong brands on a single mobile app.

The Group remains focussed on making efficiency improvements across its existing businesses to drive future growth. Good progress has been made in a number of businesses, including JEC, HACTL, Jardine Restaurants and Gammon, to implement measures in areas such as procurement, shared resources and operations. HACTL has, for example, increased its capacity to handle pallets by 30% by enhancing its use of robotics, as well as introducing automation more generally to increase efficiency. The Group has also begun implementation of an in-house Global Business Services function, to serve the growth and technology needs of its subsidiary businesses.

Enhancing Leadership and Entrepreneurialism

Jardines continues its work to create a diverse and inclusive culture where everyone can succeed. During the period, we launched a new diversity and inclusion ('D&I') strategy to help progress our ambitions across the Group. New initiatives included a learning campaign on inclusive leadership, a comprehensive review to enhance HR policies and new processes which support D&I. We have also developed targets for increasing female representation in our workforce and leadership. We recognise further progress needs to be made to achieve our objectives.

The Group is working hard to support the growth of the next generation of leaders within our businesses, ensuring our colleagues can develop the skills they need.

We are also aiming to create an owner mindset among our staff, and supporting this by enhancing our incentive structures to focus less on current profits and more on value creation over a longer time horizon. This longer-term view also incentivises experimentation and innovation.

The Group's Investment and Business Development Committee ('IBDC') is accelerating decision-making and helping us establish and support new teams, as well as bringing focus to specific project investment proposals. The IBDC also references macro trends to identify new opportunities to grow and serve our customers across Asia.

Progressing Sustainability

The Group has made substantial progress in driving its sustainability agenda and increasing visibility of the extensive range of activity taking place across our businesses.

An important milestone in the Group's sustainability journey was the publication of our inaugural Sustainability Report at the end of June. This followed extensive work over the past year to set appropriate metrics and gather data from each of our businesses, to enable the Group to measure and report on progress in implementing the sustainability agenda. Eight other Group businesses also published sustainability reports during the first half, three for the first time.

The Group demonstrated its commitment to addressing climate change and promoting decarbonisation, by publishing a statement in June 2022 clarifying its support for a Just Energy Transition to a low carbon economy in the geographies where we operate. The statement contains commitments to scale up investments in renewable energy and related innovations; diversify into non-coal mineral mining, and make no investments in new thermal or metallurgical coal mines or new thermal coal-fired power plants.

In addition, the Company and JC&C published TCFD-aligned disclosures in their sustainability reports.

The Group-wide colleague volunteering programme which was launched at the end of last year, to facilitate participation by colleagues across the Group in a range of social inclusion and other activities, continues to gather momentum.

People

Ensuring the safety and wellbeing of our people remains a top priority, as they face extensive challenges amid the ongoing pandemic. We continue to support our colleagues' health and wellbeing and invest in their development. We would like to thank all our colleagues for their continuing dedication, hard work and professionalism throughout the period.

Outlook

There was a strong improvement in the Group's profitability in the first half compared to the same period last year, with a significantly improved performance in Southeast Asia and a further contribution to growth from the simplification of the Group's holding structure, which has now fully annualised. COVID-19 continues to impact the Group's businesses in Hong Kong and on the Chinese mainland, however, and conditions there remain uncertain for the second half of the year .

Taking this together with expected lower sales in Hongkong Land's mainland China development property business and stronger comparable results in the second half of 2021, the Group expects growth to substantially moderate for the full year.

The Group remains confident that its businesses have the right strategic focus and valued market positions and are progressing well to meet the rapidly-evolving needs of their customers. With this foundation and substantial resources available to leverage attractive investment opportunities in our core growth markets across Asia, the Group is well positioned to drive sustainable mid- and long-term earnings growth.

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.

Astra

Astra reported a net profit equivalent to US$1,254 million under Indonesian reporting standards in the first half, a 106% increase on the same period last year and ahead of pre-pandemic levels. There were record performances from almost all its businesses in the period, benefitting from improved economic conditions, substantially elevated commodity prices and continued strong business performance . The half-year net profit also included a mark-to-market fair value gain on the group's investment in GoTo of US$250 million.

Net income from Astra's automotive business increased significantly to US$295 million, reflecting an increase in sales volumes. The wholesale car market increased by 21% in the first half, and Astra's car sales were 23% higher, with its market share increasing slightly to 54%. The wholesale market for motorcycles decreased by 8%, and Astra's Honda motorcycle sales fell by 13%, due to production constraints caused by semiconductor supply issues. As a result, its market share also decreased. Astra Otoparts reported a 62% increase in profit, mainly due to higher revenues from the original equipment manufacturer and replacement market segments.

Net income from the Financial Services division increased by 36% to US$200 million, due to higher contributions from the consumer finance businesses. Consumer finance businesses saw a 18% increase in the amounts financed, while the net income contribution from the group's car-focussed finance companies increased by 47% on larger loan portfolios. The contribution from the motorcycle-focussed financing business increased significantly, due to lower levels of non-performing loans. Heavy equipment-focussed finance operations saw a 112% increase in the amounts financed and the net income contribution from this business was 52% higher. General insurance company, Asuransi Astra Buana, reported a 6% increase in net income, due to higher underwriting income and investment income.

The Heavy Equipment, Mining, Construction and Energy division saw net income increase by 131% to US$427 million, mainly due to higher contributions from heavy equipment sales, mining contracting and coal mining, all of which benefitted from higher coal prices. There were, however, some adverse impacts on coal operating volumes arising from the temporary export ban on coal. United Tractors reported a 129% increase in net income to US$715 million. Komatsu heavy equipment sales increased by 111% and saw higher revenues from its parts and service businesses. Mining contracting operations reported 6% higher overburden removal volume, while coal production fell by 13%. United Tractors' coal mining subsidiaries recorded 8% lower coal sales, but this volume impact was more than offset by higher coal selling prices. Agincourt Resources saw 18% lower gold sales volumes.

Net income from Agribusiness increased by 25% to US$44 million, mainly due to improved crude palm oil prices. The group's palm oil operations were impacted in the period by the export ban on palm oil imposed by the Indonesian government, but the ban is expected to be temporary. The group's Infrastructure and Logistics division reported a 288% increase in net profit, mainly due to improved performance in its toll road businesses. Astra now has interests in 396km of operational toll roads along the Trans-Java network and the Jakarta Outer Ring Road.

Hongkong Land

Hongkong Land's underlying profit attributable to shareholders for the first six months of 2022 was US$425 million, up 8% from the equivalent period in 2021 . There was a profit attributable to shareholders of US$292 million, after accounting for a net non-cash loss of US$133 million arising from the semi-annual revaluation of investment properties. This compares with a loss attributable to shareholders of US$865 million in the first half of 2021, which included a net revaluation loss of US$1.3 billion. The group's financial position remains robust, with a strong balance sheet and liquidity.

On the Chinese mainland, Hongkong Land's development properties business saw more sales completions in the first half of 2022, resulting in higher profits than the same period last year. There was, however, weak sentiment in the majority of its key markets, impacting contracted sales despite the continued relaxation of cooling measures.

The planned timing of sales completions and the impact of pandemic-related restrictions on construction activities, however, mean that profits from the group's Chinese mainland development properties business will be lower in the second half and some projects will be deferred into 2023.

Pandemic-related shutdowns impacted construction progress at the group's mixed-use Galaxy Midtown project in Shanghai, possibly delaying anticipated sales completions from the end of 2022 into early 2023.

Market sentiment was also weak in a majority of the group's key markets, impacting contracted sales despite the continued relaxation of cooling measures. The group's attributable interest in contracted sales was US$419 million in the first half of 2022, compared to US$1,360 million and US$1,288 million in the first and second halves of 2021, respectively. At 30th June 2022, the group had US$2,425 million in sold but unrecognised contracted sales, compared with US$2,853 million at the end of 2021.

Results from the group's residential development activities in Singapore declined slightly compared to the first half of 2021, primarily due to lower completion progress on projects. In addition, s ales demand for the group's projects in the rest of Southeast Asia was generally subdued.

Contributions from the Investment Properties business remained resilient, despite negative rental reversions in Hong Kong.

The group's investment properties business in Hong Kong saw a strong start to the year. Anti-pandemic measures introduced later in the first quarter, however, as the number of COVID-19 cases increased, impacted the number of new office leasing enquiries and resulted in the group providing rental support to a select number of retail tenants. The group's Central office portfolio nevertheless continued to benefit from a flight to quality, as a number of new tenants committed to long-term leases. Physical vacancy was 5.4% at the end of June 2022, compared to 5.2% at the end of 2021, and on a committed basis, it was 5.1%, compared to 4.9% at the end of 2021.

Hongkong Land's office portfolio in Singapore continued to benefit from healthy leasing momentum, and vacancy on a committed basis remained low.

Vacancy at the group's Central retail portfolio was unchanged from the end of 2021, although base rental reversions remained negative. Tourism has not yet returned to Hong Kong due to travel and quarantine restrictions, adversely impacting retail sales levels.

A number of luxury brands opened new stores as planned in Beijing and Macau, despite the market challenges faced by the group's retail operations due to pandemic-related restrictions, which negatively impacted footfall and tenant sales.

In Shanghai, city-wide lockdowns saw development activities at the multi-phase West Bund site suspended for over two months, although construction has since resumed.

Jardine Motors

Jardine Motors delivered a 12% increase in underlying net profit to US$172 million for the first half of the year . Zhongsheng, in which the Group owns a 21% interest, and which acquired the Group's Zung Fu China business in October 2021, recorded an 89% higher contribution of US$150 million, relating to its performance for the six months from July to December 2021. There was a 24% year-on-year increase in the contribution from the United Kingdom business, driven by strong margins on both new and used cars, although new car volume remained low due to supply constraints caused by the ongoing global semiconductor shortage.

Jardine Pacific

Jardine Pacific reported a 7% lower underlying net profit of US$71 million in the first half, compared with an underlying net profit of US$76 million in the equivalent period in 2021. There was an adverse impact on the performance of a number of Jardine Pacific's businesses from the resurgence of the pandemic in Hong Kong, which was partially offset by the benefits realised from ongoing operational improvements and government support.

Jardine Pacific operates within three main business segments: engineering, consumer businesses and transport services.

Within the group's engineering businesses, JEC's contribution was lower than last year, primarily as a result of project delays, but strong levels of new work were secured in the period, leading to a record order book at the half-year. Jardine Schindler's contribution was lower than the same period last year, with softer sales in its New Installation and Modernisation businesses and a weaker margin overall. Gammon delivered good profit growth, largely due to the timing of project completions, and its order book remains strong.

Within Jardine Pacific's consumer businesses, Jardine Restaurants Group reported a weaker performance overall, as strong delivery sales in Pizza Hut Taiwan and benefits from process re-engineering projects were offset by poorer performances in both Pizza Hut and KFC Hong Kong, caused by the pandemic restrictions there.

The Zung Fu business in Hong Kong and Macau reported a profit for the period, as after-sales activities picked up in the second quarter, despite fewer passenger car deliveries.

Within Jardine Transport Services, HACTL's contribution fell compared with the same period last year, with lower volumes as export demand softened. Jardine Aviation reported a higher loss, with flight volumes remaining low.

Greatview continued to see volume growth in both the China and international markets, but its business was impacted by both rising raw material costs and higher supply chain costs, resulting in a significantly weaker profit performance.

Jardine Cycle & Carriage

Jardine Cycle & Carriage delivered strong results in the first half of 2022, compared to the same period in 2021, with underlying profit 51% higher at US$522 million, mainly due to higher contributions from Astra and its investment in THACO. Excluding the Astra contribution of US$465 million, the business reported an underlying profit for the period of US$57 million, 9% higher than the first half of 2021.

THACO contributed a US$52 million profit, 43% higher than the same period last year, mainly due to strong performance from its automotive operations. The business benefitted from a temporary reduction in registration fees for locally-assembled vehicles and saw margins increase due to an improved sales mix.

There was a 20% higher contribution of US$28 million from the group's Direct Motor Interests. Lower profits from the Singapore operations - where car sales fell as sales volume was adversely impacted by high Certificate of Entitlement ('COE') prices and stock supply shortages - were more than offset by an improved performance by Tunas Ridean in Indonesia, which saw increased profitability across its automotive and financial services businesses. Cycle & Carriage Bintang in Malaysia also contributed an improved profit despite challenging trading conditions, with higher business volume due to the sales tax reduction and the impact of cost savings initiatives.

Among JC&C's other interests, the contribution from Siam City Cement was 9% higher than the same period last year at US$15 million. There were higher cement volumes and prices in most of its markets, but profits were adversely impacted by inflationary pressure, high energy costs and the challenging economic conditions in Sri Lanka.

REE's contribution of US$9 million, based on its first-quarter results, was 71% higher than the previous year, due to an improved performance from its hydropower investments, reflecting favourable hydrography. REE has an increasing focus on its investments in renewable energy sources, which also include solar.

JC&C's investment in Vinamilk produced a dividend income of US$9 million, compared to US$11 million last year. Vinamilk reported a 20% decrease in net profit, mainly due to higher raw material and transportation costs.

Mandarin Oriental

Mandarin Oriental reported a lower underlying loss of US$21 million for the first half of the year, a 69% improvement from the loss of US$67 million incurred in the equivalent period in 2021.

Except for its properties in North Asia, where government restrictions on international and domestic travel remained in place, the performance of the group's hotels substantially recovered during the first half, with some properties achieving room rates exceeding pre-COVID-19 levels.

In Europe, the Middle East and Africa, and America, where pandemic restrictions were largely relaxed, the group benefitted from strong leisure demand, with rates at or above pre-pandemic levels and improving occupancy levels .

Demand in North Asia remained impacted by government restrictions to contain regional COVID-19 outbreaks. In other Asian markets, however, pandemic restrictions slowly eased, allowing a gradual recovery in occupancy levels.

The group continues to have a strong pipeline of future openings, with 25 announced projects to open in the next five years, almost doubling the number of properties operated by the group. The new properties comprise eleven standalone hotel projects, eleven projects with hotel and residence components and three standalone residences projects .

The valuation of the Causeway Bay site under development remained broadly in line with the valuation at 31st December 2021.

DFI Retail Group

The performance of DFI in the first half of 2022 was impacted by a number of challenges. There were poor performances by key associates Yonghui and Maxim's, as well as reduced profit contributions from Grocery Retail and Convenience, which faced a combination of inflationary cost pressures and changing customer behaviours. The weaker performances of these businesses more than offset strong Health and Beauty profit growth and an increased contribution from IKEA. DFI increased planned investments in digital capacity and capability during the period. While these reduced profit in the period, they are necessary to meet customers' evolving needs for on-and off-line service and are made with a view to driving long-term sustainable growth.

The group saw sales of US$4.5 billion for the period by its subsidiaries, 1% lower than the prior year. It reported an underlying loss of US$52 million for the first half, primarily due to US$60 million losses attributable to associates. This compares with an underlying profit of US$32 million for the equivalent period in 2021.

DFI's share of Yonghui's underlying losses for the six months ended March 2022 was US$38 million, including a US$64 million share of losses for the final quarter of 2021. Encouragingly, Yonghui reported improvements in like-for-like sales and profitability in the first quarter of 2022.

In addition, the group's 50%-owned associate, Maxim's, contributed a US$26 million loss in the first half. Performance in the first quarter was severely impacted by government-imposed dining restrictions in Hong Kong to address a further wave of COVID-19 cases there, as well as temporary lockdowns on the Chinese mainland. Sales, however, started to recover in Hong Kong over the second quarter as restrictions eased.

Like-for-like sales by the Grocery Retail business in the first half were slightly behind the prior year. There was good sales growth in North Asia driven by pantry-stocking behaviour and strong in-store execution, despite challenging external conditions and supply chain constraints, particularly in the first quarter. Sales performance in Southeast Asia was, however, impacted by the easing of movement restrictions, which led to a reduction in eating-at-home, store renovation disruptions in Singapore and stock availability issues in Malaysia. Profitability in the half was lower than the comparable period last year due to a combination of inflation impacting cost of goods sold, e-commerce investment costs and operating cost pressures.

The Health and Beauty business reported strong sales recovery in the first half. Sales by Mannings in Hong Kong were supported by effective in-store execution and a surge in demand for pandemic-related products and over-the-counter medicines. Guardian reported strong like-for-like sales growth across key geographies, driven by a combination of a recovery in mall and tourist locations, demand for pandemic-related products and effective store-level execution. The profitability of the business also grew strongly in the first half, driven by the sales recovery, effective promotion management and cost control.

DFI's Convenience business saw varying operating performances across regions in the first half, as pandemic-related restrictions continued to impact North Asia.

Like-for-like sales for IKEA were lower in the first quarter, as the pandemic continued to disrupt store operating capacity and there was reduced stock availability. Like-for-like sales improved in the second quarter, however, and IKEA's profitability in the first half was ahead of the same period last year.

Financial Position

The balance sheet and liquidity of the Group remain strong.

Shareholders' funds were US$29.2 billion at 30th June 2022, compared with US$29.8 billion at 31st December 2021.

Consolidated net debt excluding financial services companies was US$7.8 billion at 30th June 2022, representing gearing of 14%, compared with 11% at 31st December 2021.

The Group had liquidity of US$12.7 billion as at 30th June 2022, consisting of US$6.4 billion in cash reserves and US$6.3 billion in unused, committed debt facilities.

 
 
Jardine Matheson Holdings Limited 
 Consolidated Profit and Loss Account 
 
 
                                                                                           (unaudited) 
                                                                                   Six months ended 30th June                             Year ended 31st December 
                                                                                2022                                 2021                                 2021 
 
 
                                                            Underlying                           Underlying                           Underlying 
                                                              business   Non-trading               business   Non-trading               business   Non-trading 
                                                           performance         items     Total  performance         items     Total  performance         items     Total 
                                                                  US$m          US$m      US$m         US$m          US$m      US$m         US$m          US$m      US$m 
 
 
Revenue (note 2)                                                18,277             -    18,277       17,492             -    17,492      35 ,862             -   35 ,862 
Net operating costs (note 
 3)                                                           (16,310)          (35)  (16,345)     (16,032)          (91)  (16,123)     (32,534)         1,114  (31,420) 
Change in fair value 
 of investment properties                                            -         (113)     (113)            -       (1,323)   (1,323)            -       (1,410)   (1,410) 
                                                              --------  ------------  --------  -----------  ------------  --------  -----------  ------------  -------- 
 
Operating profit/(loss)                                          1,967         (148)     1,819        1,460       (1,414)        46       3 ,328         (296)     3,032 
Net financing charges 
 
 
  *    financing charges                                         (294)             -     (294)        (291)             -     (291)        (595)             -     (595) 
 
  *    financing income                                             87             -        87          106             -       106          206             -       206 
 
 
                                                                 (207)             -     (207)        (185)             -     (185)        (389)             -     (389) 
  Share of results of associates 
   and 
   joint ventures (note 
   4) 
 
 
  *    before change in fair value of investment properties        610         (106)       504          458            17       475        1,178            10     1,188 
 
  *    change in fair value of investment properties                 -          (21)      (21)            -           (5)       (5)            -            81        81 
 
 
                                                                   610         (127)       483          458            12       470        1,178            91     1,269 
 
Profit/(loss) before 
 tax                                                             2,370         (275)     2,095        1,733       (1,402)       331        4,117         (205)     3,912 
Tax (note 5)                                                     (445)             6     (439)        (335)           (6)     (341)        (828)         (123)     (951) 
                                                              --------  ------------  --------  -----------  ------------  --------  -----------  ------------  -------- 
 
Profit/(loss) after tax                                          1,925         (269)     1,656        1,398       (1,408)      (10)        3,289         (328)     2,961 
                                                              --------  ------------  --------  -----------  ------------  --------  -----------  ------------  -------- 
 
Attributable to: 
Shareholders of the Company 
 (notes 6 & 7)                                                     747         (324)       423          615         (732)     (117)        1,513           368     1,881 
Non-controlling interests                                        1,178            55     1,233          783         (676)       107       1 ,776         (696)     1,080 
                                                              --------  ------------  --------  -----------  ------------  --------  -----------  ------------  -------- 
 
                                                                 1,925         (269)     1,656        1,398       (1,408)      (10)        3,289         (328)     2,961 
                                                              --------  ------------  --------  -----------  ------------  --------  -----------  ------------  -------- 
 
                                                                   US$                     US$          US$                     US$          US$                     US$ 
 
 
Earnings/(loss) per share 
 (note 6) 
- basic                                                           2.60                    1.47         1.86                  (0.35)         4.83                    6.01 
- diluted                                                         2.60                    1.47         1.86                  (0.35)         4.83                    6.01 
                                                              --------                --------  -----------                --------  -----------                -------- 
 
 
 
 
Jardine Matheson Holdings Limited 
 Consolidated Statement of Comprehensive 
 Income 
 
 
                                                          (unaudited)           Year ended 
                                                           Six months ended           31st 
                                                           30th June              December 
                                                          2022            2021        2021 
                                                          US$m            US$m        US$m 
 
 
Profit/(loss) for the period                             1,656            (10)       2,961 
Other comprehensive income/(expense) 
 
 
Items that will not be reclassified 
 to profit or loss: 
                                                                -------------- 
 
Remeasurements of defined benefit 
 plans                                                       1             (5)          86 
Net revaluation surplus before 
 transfer to investment properties 
- tangible assets                                            -               -          75 
- right-of-use assets                                        -               -           3 
Tax on items that will not be 
 reclassified                                                -               1         (9) 
 
 
                                                             1             (4)         155 
Share of other comprehensive income/( 
 expense) of associates and joint 
 ventures                                                    2             (2)           9 
                                          --------------------  --------------  ---------- 
 
                                                             3             (6)         164 
Items that may be reclassified 
 subsequently to profit or loss: 
 
Net exchange translation differences 
                                          --------------------  --------------  ---------- 
 
- net loss arising during the period                     (795)           (275)       (227) 
- transfer to profit and loss                                -               -        (21) 
 
 
                                                         (795)           (275)       (248) 
Revaluation of other investments 
 at fair value 
  through other comprehensive income 
                                          --------------------  --------------  ---------- 
 
- net loss arising during the period                      (12)            (10)         (2) 
- transfer to profit and loss                              (2)             (2)         (3) 
 
 
                                                          (14)            (12)         (5) 
Cash flow hedges 
                                          --------------------  --------------  ---------- 
 
- net gain arising during the period                        55              59          75 
- transfer to profit and loss                              (5)               6          12 
 
 
                                                            50              65          87 
Tax relating to items that may 
 be reclassified                                          (11)            (18)        (21) 
Share of other comprehensive expense 
 of associates and joint ventures                        (651)            (92)        (16) 
                                          --------------------  --------------  ---------- 
 
                                                       (1,421)           (332)       (203) 
 
 
  Other comprehensive expense for 
   the period, 
   net of tax                                          (1,418)           (338)        (39) 
                                          --------------------  --------------  ---------- 
 
  Total comprehensive income/(expense) 
   for 
   the period                                              238           (348)       2,922 
                                          --------------------  --------------  ---------- 
 
Attributable to: 
Shareholders of the Company                              (353)           (249)       1,908 
Non-controlling interests                                  591            (99)       1,014 
                                          --------------------  --------------  ---------- 
 
                                                           238           (348)       2,922 
  --------------------------------------  --------------------  --------------  ---------- 
 
 
 
 
Jardine Matheson Holdings Limited 
 Consolidated Balance Sheet 
 
 
                                                     (unaudited)        At 31st 
                                                      At 30th June     December 
                                                2022            2021       2021 
                                                US$m            US$m       US$m 
 
 
Assets 
Intangible assets                              2,577           2,646      2,635 
Tangible assets                                5,905           6,513      6,184 
Right-of-use assets                            4,052           4,636      4,274 
Investment properties                         32,500          32,937     32,847 
Bearer plants                                    484             486        499 
Associates and joint ventures                 17,730          16,582     17,980 
Other investments                              2,950           2,847      2,908 
Non-current debtors                            3,008           2,997      2,961 
Deferred tax assets                              522             484        518 
Pension assets                                    24               9         32 
                                      --------------  --------------  --------- 
 
Non-current assets                            69,752          70,137     70,838 
                                      --------------  --------------  --------- 
 
Properties for sale                            3,515           2,680      3,345 
Stocks and work in progress                    2,957           2,656      2,793 
Current debtors                                7,163           6,814      6,928 
Current investments                               15              80         46 
Current tax assets                               143             185        172 
Bank balances and other liquid 
 funds 
                                      --------------  --------------  --------- 
 
- non-financial services companies             5,725           7,280      6,904 
- financial services companies                   645             358        378 
 
 
                                               6,370           7,638      7,282 
                                      --------------  --------------  --------- 
 
                                              20,163          20,053     20,566 
Asset classified as held for sale                 82              20         85 
                                      --------------  --------------  --------- 
 
Current assets                                20,245          20,073     20,651 
                                      --------------  --------------  --------- 
 
 
 
 
 
 
 
 
 
 
 
Total assets                                  89,997          90,210     91,489 
                                      --------------  --------------  --------- 
 
 
 
 
 
 
Jardine Matheson Holdings Limited 
 Consolidated Balance Sheet (continued) 
 
 
                                                          (unaudited)        At 31st 
                                                           At 30th June     December 
                                                    2022             2021       2021 
                                                    US$m             US$m       US$m 
 
 
Equity 
Share capital                                         72              180        179 
Share premium and capital reserves                    26               34         25 
Revenue and other reserves                        29,130           33,771     35,800 
Own shares held                                        -          (6,223)    (6,223) 
                                           -------------  ---------------  --------- 
 
Shareholders' funds                               29,228           27,762     29,781 
Non-controlling interests                         27,846           28,108     28,587 
                                           -------------  ---------------  --------- 
 
Total equity                                      57,074           55,870     58,368 
                                           -------------  ---------------  --------- 
 
Liabilities 
Long-term borrowings 
                                           -------------  ---------------  --------- 
 
- non-financial services companies                11,274           11,144     11,026 
- financial services companies                     1,433            1,133      1,273 
 
 
                                                  12,707           12,277     12,299 
Non-current lease liabilities                      2,842            2,953      3,022 
Deferred tax liabilities                             727              679        743 
Pension liabilities                                  445              517        451 
Non-current creditors                                180              266        250 
Non-current provisions                               311              320        309 
                                           -------------  ---------------  --------- 
 
Non-current liabilities                           17,212           17,012     17,074 
                                           -------------  ---------------  --------- 
 
Current creditors                                 10,308            9,661     10,074 
Current borrowings 
                                           -------------  ---------------  --------- 
 
- non-financial services companies                 2,269            4,211      2,513 
- financial services companies                     1,624            2,054      1,846 
 
 
                                                   3,893            6,265      4,359 
Current lease liabilities                            771              798        812 
Current tax liabilities                              565              406        609 
Current provisions                                   174              198        193 
                                           -------------  ---------------  --------- 
 
Current liabilities                               15,711           17,328     16,047 
 
 
Total liabilities                                 32,923           34,340     33,121 
                                           -------------  ---------------  --------- 
 
 
Total equity and liabilities                      89,997           90,210     91,489 
                                           -------------  ---------------  --------- 
 
 
 
 
 
Jardine Matheson Holdings Limited 
 Consolidated Statement of Changes in Equity 
 
 
                                                                                                  Attributable 
                                                                                                            to     Attributable 
                                                              Asset                          Own  shareholders               to 
                    Share    Share   Capital   Revenue  revaluation   Hedging  Exchange   shares        of the  non-controlling    Total 
                  capital  premium  reserves  reserves     reserves  reserves  reserves     held       Company        interests   equity 
                     US$m     US$m      US$m      US$m         US$m      US$m      US$m     US$m          US$m             US$m     US$m 
 
 
Six months ended 
30th June 2022 
(unaudited) 
At 1st January 
 2022                 179        -        25    34,926        2,242      (18)   (1,350)  (6,223)        29,781           28,587   58,368 
Total 
 comprehensive 
 expense                -        -         -       417            -        38     (808)        -         (353)              591      238 
Dividends paid 
 by the Company 
 (note 8)               -        -         -     (448)            -         -         -        -         (448)                -    (448) 
Dividends paid 
 to 
 non-controlling 
 interests              -        -         -         -            -         -         -        -             -            (677)    (677) 
Issue of shares         -        1         -         -            -         -         -        -             1                -        1 
Employee share 
 option schemes         -        -         4         -            -         -         -        -             4                1        5 
Scrip issued in 
 lieu of 
 dividends              -        -         -       138            -         -         -        -           138                -      138 
Repurchase of 
 shares               (1)      (3)         -     (147)            -         -         -        -         (151)                -    (151) 
Reduction of 
 capital            (106)      (1)         -   (6,116)            -         -         -    6,223             -                -        - 
Capital                 -        -         -         -            -         -         -        - 
contribution 
from 
non-controlling 
interests                                                                                                    -                2        2 
Share purchased 
 for a 
 share-based 
 incentive plan 
 in a subsidiary        -        -         -      (15)            -         -         -        -          (15)              (5)     (20) 
Change in 
 interests in 
 other 
 subsidiaries           -        -         -       253            -         -         -        -           253            (611)    (358) 
Change in 
 interests in 
 associates 
 and joint 
 ventures               -        -         -        18            -         -         -        -            18             (42)     (24) 
Transfer                -        3       (3)         -            -         -         -        -             -                -        - 
 
At 30th June 
 2022                  72        -        26    29,026        2,242        20   (2,158)        -        29,228           27,846   57,074 
                  -------  -------  --------  --------  -----------  --------  --------  -------  ------------  ---------------  ------- 
 
 
On 8th March 2021, the Company announced a plan to simplify the Group's parent company structure, including 
 the acquisition for cash of the 15% of Jardine Strategic Holdings Limited's ('Jardine Strategic') issued 
 share capital that the Company and its wholly-owned subsidiaries did not already own (the 'Acquisition'). 
 The Acquisition was implemented by way of an amalgamation of Jardine Strategic and a wholly-owned subsidiary 
 of the Company ('the amalgamated subsidiary'), under the Companies Act 1981 of Bermuda. The total Acquisition 
 value was US$5.6 billion. The Acquisition was financed by the issuance of a total of US$1.2 billion 
 bonds on 9th April 2021, new revolving credit facilities and existing cash resources. 
 
 The Acquisition was completed on 14th April 2021, following shareholders' approval at the special general 
 meeting on 14th April 2021. The Acquisition value and the related transaction costs resulted in a reduction 
 of the Group's total equity in 2021. 
 
 At the Company's annual general meeting on 5th May 2022, shareholders approved the cancellation of the 
 59% shareholding in the Company held directly and indirectly by the above amalgamated subsidiary by 
 way of a reduction of capital in the Company. The capital reduction, which was effective on 18th May 
 2022, constituted the final stage in the Group's simplification of its parent company structure. 
---------------------------------------------------------------------------------------------------------------------------------------- 
 
 
 
 
 
 
 
Jardine Matheson Holdings Limited 
 Consolidated Statement of Changes in Equity (continued) 
 
 
                                                                                                  Attributable 
                                                                                                            to     Attributable 
                                                              Asset                          Own  shareholders               to 
                    Share    Share   Capital   Revenue  revaluation   Hedging  Exchange   shares        of the  non-controlling    Total 
                  capital  premium  reserves  reserves     reserves  reserves  reserves     held       Company        interests   equity 
                     US$m     US$m      US$m      US$m         US$m      US$m      US$m     US$m          US$m             US$m     US$m 
 
 
Six months ended 
30th June 2021 
(unaudited) 
At 1st January 
 2021                 181        -        31    33,497        2,167      (55)   (1,152)  (5,282)        29,387           33,456   62,843 
Total 
 comprehensive 
 expense                -        -         -     (123)            -        20     (146)        -         (249)             (99)    (348) 
Dividends paid 
 by the Company 
 (note 8)               -        -         -     (375)            -         -         -        -         (375)                -    (375) 
Dividends paid 
 to 
 non-controlling 
 interests              -        -         -         -            -         -         -        -             -            (453)    (453) 
Issue of shares         -        3         -         -            -         -         -        -             3                -        3 
Employee share 
 option schemes         -        -         1         -            -         -         -        -             1                -        1 
Scrip issued in 
 lieu of 
 dividends              -        -         -       112            -         -         -        -           112                -      112 
Repurchase of 
 shares               (1)      (1)         -     (229)            -         -         -        -         (231)                -    (231) 
Acquisition of 
 the remaining 
 interest 
 in Jardine 
 Strategic              -        -         -         -            -         -         -    (941)         (941)          (4,631)  (5,572) 
Change in 
 interests in 
 other 
 subsidiaries           -        -         -       109            -         -         -        -           109            (144)     (35) 
Change in 
 interests in 
 associates 
 and joint 
 ventures               -        -         -      (54)            -         -         -        -          (54)             (21)     (75) 
Transfer                -        5       (5)        27            -         -      (27)        -             -                -        - 
 
At 30th June 
 2021                 180        7        27    32,964        2,167      (35)   (1,325)  (6,223)        27,762           28,108   55,870 
                  -------  -------  --------  --------  -----------  --------  --------  -------  ------------  ---------------  ------- 
 
Year ended 31st 
December 2021 
At 1st January 
 2021                1 81        -        31   33 ,497        2,167      (55)   (1,152)  (5,282)        29,387          33 ,456  62 ,843 
Total 
 comprehensive 
 income                 -        -         -     1,966           76        37     (171)        -         1,908            1,014    2,922 
Dividends paid 
 by the Company         -        -         -     (505)            -         -         -        -         (505)                -    (505) 
Dividends paid 
 to 
 non-controlling 
 interests              -        -         -         -            -         -         -        -             -            (669)    (669) 
Unclaimed 
 dividends 
 forfeited              -        -         -         1            -         -         -        -             1                1        2 
Issue of shares         -        3         -         -            -         -         -        -             3                -        3 
Employee share 
 option schemes         -        -         1         -            -         -         -        -             1                -        1 
Scrip issued in 
 lieu of 
 dividends              1      (1)         -       152            -         -         -        -           152                -      152 
Repurchase of 
 shares               (3)      (8)         -     (569)            -         -         -        -         (580)                -    (580) 
Acquisition of 
 the remaining 
 interest 
 in Jardine 
 Strategic              -        -         -         -            -         -         -    (941)         (941)          (4,627)  (5,568) 
Subsidiaries 
 disposed of            -        -         -         -            -         -         -        -             -              (5)      (5) 
Change in 
 interests in 
 subsidiaries           -        -         -       282            -         -         -        -           282            (581)    (299) 
Change in 
 interests in 
 associates 
 and joint 
 ventures               -        -         -        73            -         -         -        -            73              (2)       71 
Transfer                -        6       (7)        29          (1)         -      (27)        -             -                -        - 
                  -------  -------  --------  --------  -----------  --------  --------  -------  ------------  ---------------  ------- 
 
At 31st December 
 2021                 179        -        25   34 ,926        2,242     (18 )   (1,350)  (6,223)        29,781           28,587   58,368 
                  -------  -------  --------  --------  -----------  --------  --------  -------  ------------  ---------------  ------- 
 
 
 
Jardine Matheson Holdings Limited 
 Consolidated Cash Flow Statement 
 
 
                                                               (unaudited) 
                                                                Six months ended        Year ended 
                                                                30th June            31st December 
                                                             2022             2021            2021 
                                                             US$m             US$m            US$m 
 
 
Operating activities 
                                                  ---------------  ---------------  -------------- 
 
Cash generated from operations                              2,428            3,135          5 ,383 
Interest received                                              75               91             194 
Interest and other financing charges 
 paid                                                       (263)            (282)           (573) 
Tax paid                                                    (485)            (351)           (728) 
                                                  ---------------  ---------------  -------------- 
 
                                                            1,755            2,593          4 ,276 
Dividends from associates and joint 
 ventures                                                     428              325             800 
 
 
Cash flows from operating activities                        2,183            2,918          5 ,076 
 
Investing activities 
                                                  ---------------  ---------------  -------------- 
 
Purchase of subsidiaries                                      (5)                -            (24) 
Purchase of associates and joint ventures 
 (note 10(a))                                               (193)            (276)           (194) 
Purchase of other investments (note 
 10(b))                                                     (300)            (245)           (467) 
Purchase of intangible assets                                (68)             (65)           (158) 
Purchase of tangible assets                                 (424)            (298)           (620) 
Additions to right-of-use assets                             (33)             (19)            (25) 
Additions to investment properties                           (56)             (72)           (118) 
Additions to bearer plants                                   (18)             (16)            (32) 
  Advances to and repayments to associates 
   and 
   joint ventures (note 10(c))                              (556)            (223)         (1,100) 
  Advances from and repayments from associates 
   and 
   joint ventures (note 10(d))                                332              432             850 
Sale of subsidiaries                                            -                -           1,510 
Sale of associates and joint ventures                           7                -              60 
Sale of other investments (note 10(e))                        145              203             398 
Sale of tangible assets                                        29               62             135 
Sale of right-of-use assets                                     -                -              13 
Sale of investment properties                                   -                -               3 
 
 
Cash flows from investing activities                      (1,140)            (517)             231 
 
Financing activities 
                                                  ---------------  ---------------  -------------- 
 
Issue of shares                                                 1                3               3 
Capital contribution from non-controlling 
 interests                                                      2                -               - 
Acquisition of the remaining interest 
 in Jardine Strategic                                        (21)          (5,447)         (5,490) 
Change in interests in subsidiaries 
 (note 10(f))                                               (360)             (35)           (299) 
Purchase of own shares                                      (153)            (236)           (584) 
Purchase of shares for a share-based 
 incentive plan in 
 a subsidiary                                                (20)                -               - 
Drawdown of borrowings                                      4,248            8,953          12,572 
Repayment of borrowings                                   (4,048)          (6,008)        (11,467) 
Principal elements of lease payments                        (432)            (436)           (894) 
Dividends paid by the Company                               (310)            (263)           (353) 
Dividends paid to non-controlling interests                 (671)            (446)           (669) 
 
 
Cash flows from financing activities                      (1,764)          (3,915)         (7,181) 
                                                  ---------------  ---------------  -------------- 
 
Net decrease in cash and cash equivalents                   (721)          (1,514)         (1,874) 
Cash and cash equivalents at beginning 
 of period                                                  7,278            9,153          9 ,153 
Effect of exchange rate changes                             (199)             (68)             (1) 
                                                  ---------------  ---------------  -------------- 
 
Cash and cash equivalents at end of 
 period                                                     6,358            7,571          7 ,278 
                                                  ---------------  ---------------  -------------- 
 
 
 
 
Jardine Matheson Holdings Limited 
 Analysis of Profit Contribution 
 
 
                                                             (unaudited) 
                                                              Six months ended        Year ended 
                                                              30th June            31st December 
                                                          2022              2021            2021 
                                                          US$m              US$m            US$m 
 
 
Reportable segments 
Jardine Pacific                                             71                76             175 
Jardine Motors                                             172               154             318 
Hongkong Land                                              220               184             474 
DFI Retail                                                (40)                25              82 
Mandarin Oriental                                         (17)              (47)            (48) 
Jardine Cycle & Carriage                                    67                56             119 
Astra                                                      349               203             474 
                                              ----------------  ----------------  -------------- 
 
                                                           822               651           1,594 
Corporate and other interests                             (75)              (36)            (81) 
                                              ----------------  ----------------  -------------- 
 
Underlying profit attributable 
 to shareholders*                                          747               615           1,513 
Decrease in fair value of investment 
 properties                                               (63)             (691)           (681) 
Sale of Zung Fu China(#)                                     -                 -             791 
Sale of Zung Fu properties in Hong 
 Kong                                                        -                 -             337 
Other non-trading items                                  (261)              (41)            (79) 
                                              ----------------  ----------------  -------------- 
 
Profit/(loss) attributable to shareholders                 423             (117)           1,881 
                                              ----------------  ----------------  -------------- 
 
Analysis of Jardine Pacific's contribution 
Jardine Schindler                                           17                17              32 
JEC                                                         16                18              49 
Gammon                                                      13                 8              39 
Jardine Restaurants                                         13                18              27 
Transport Services                                          11                15              31 
Zung Fu Hong Kong(#)                                         3                 -               4 
Corporate and other interests                              (2)                 -             (7) 
                                              ----------------  ----------------  -------------- 
 
                                                            71                76             175 
                                              ----------------  ----------------  -------------- 
 
Analysis of Jardine Motors' contribution 
Hong Kong(#) and Chinese mainland                          150               138             285 
United Kingdom                                              20                16              38 
Corporate                                                    2                 -             (5) 
                                              ----------------  ----------------  -------------- 
 
                                                           172               154             318 
                                              ----------------  ----------------  -------------- 
 

* Underlying profit attributable to shareholders is the measure of profit adopted by the Group in accordance with IFRS 8 'Operating Segments'.

(#) During 2021, the operations under Jardine Motors had been restructured. The motor trading business in the Chinese mainland ('Zung Fu China') was sold to the Group's associate, Zhongsheng, in October 2021. Subsequent to the sale, the motor trading businesses in Hong Kong and Macau ('Zung Fu Hong Kong') are managed by Jardine Pacific. Accordingly, the results of these operations are presented under Jardine Pacific from October 2021. Operations in the United Kingdom and Zhongsheng remain unchanged with results presented under Jardine Motors.

__________________________________________________________________________________________

 
 
Jardine Matheson Holdings Limited 
 Notes to Condensed Financial Statements 
 
 
   1.    Accounting Policies and Basis of Preparation 

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

There are no changes to the accounting policies as described in the 2021 annual financial statements and the Group has not early adopted any standard or amendments that have been issued but not yet effective. A number of amendments were effective from 1st January 2022. The more important amendments applicable to the Group is as follows:

Amendments to IAS 37 - Onerous Contracts - Cost of Fulfilling a Contract

(effective from 1st January 2022)

The amendments clarifies that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The Group applied the amendment from 1st January 2022 and there is no significant impact on the Group's consolidated financial statements.

   2.    Revenue 
 
                                                                Jardine 
                Jardine  Jardine  Hongkong      DFI  Mandarin     Cycle           Intersegment 
                                                                      & 
                Pacific   Motors      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 
 30th June 
 2022 
 By product 
 and 
 service: 
 
 Property             2        -       894        -         -         -       32           (4)      924 
 Motor 
  vehicles          207    1,088         -        -         -       764    3,774             -    5,833 
 Retail and 
  restaurants       428        -         -    4,483         -         -        -             -    4,911 
 Financial 
  services            -        -         -        -         -         -      884             -      884 
 Engineering, 
  heavy 
  equipment, 
  mining 
  and 
  construction      321        -         -        -         -         -    4,166          (21)    4,466 
 Hotels               -        -         -        -       198         -        -             -      198 
 Other                -        -         -        -         -         -    1,061             -    1,061 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
                    958    1,088       894    4,483       198       764    9,917          (25)   18,277 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Revenue from 
 contracts 
 with 
 customers: 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Recognised at 
  a 
  point in 
  time              666    1,088       235    4,483        62       714    8,810          (25)   16,033 
 Recognised 
  over 
  time              290        -       111        -       127        48       98             -      674 
 
 
                    956    1,088       346    4,483       189       762    8,908          (25)   16,707 
 Revenue from 
 other 
 sources: 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Rental income 
  from 
  investment 
  properties          2        -       456        -         -         -        1             -      459 
 Revenue from 
  financial 
  services 
  companies           -        -         -        -         -         -      884             -      884 
 Other                -        -        92        -         9         2      124             -      227 
 
 
                      2        -       548        -         9         2    1,009             -    1,570 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
                    958    1,088       894    4,483       198       764    9,917          (25)   18,277 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Six months 
 ended 
 30th June 
 2021 
 By product 
 and 
 service: 
 
 Property             2        -       886        -         -         -       24           (5)      907 
 Motor 
  vehicles            -    3,042         -        -         -       803    2,989           (6)    6,828 
 Retail and 
  restaurants       427        -         -    4,537         -         -        -             -    4,964 
 Financial 
  services            -        -         -        -         -         -      839             -      839 
 Engineering, 
  heavy 
  equipment, 
  mining 
  and 
  construction      239        -         -        -         -         -    2,593          (19)    2,813 
 Hotels               -        -         -        -       102         -        -             -      102 
 Other                -        -         -        -         -         -    1,039             -    1,039 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
                    668    3,042       886    4,537       102       803    7,484          (30)   17,492 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Revenue from 
 contracts 
 with 
 customers: 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Recognised at 
  a 
  point in 
  time              458    3,040        46    4,537        37       770    6,433           (6)   15,315 
 Recognised 
  over 
  time              208        2       287        -        55        32      109          (19)      674 
 
 
                    666    3,042       333    4,537        92       802    6,542          (25)   15,989 
 Revenue from 
 other 
 sources: 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
 Rental income 
  from 
  investment 
  properties          2        -       470        -         -         -        6           (5)      473 
 Revenue from 
  financial 
  services 
  companies           -        -         -        -         -         -      839             -      839 
 Other                -        -        83        -        10         1       97             -      191 
 
 
                      2        -       553        -        10         1      942           (5)    1,503 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 
                    668    3,042       886    4,537       102       803    7,484          (30)   17,492 
                -------  -------  --------  -------  --------  --------  -------  ------------  ------- 
 

Gross revenue, comprises revenue together with 100% of revenue from associates and

joint ventures, are analysed as follows:

 
                  Six months ended 30th June 
 
                                2022    2021 
                                US$m    US$m 
 
 
 By business: 
 Jardine Pacific               2,941   2,615 
 Jardine Motors               14,702  16,110 
 Hongkong Land                 2,543   2,410 
 DFI Retail                   14,028  13,950 
 Mandarin Oriental               356     168 
 Jardine Cycle & Carriage      4,023   3,253 
 Astra                        17,547  14,114 
 Intersegment transactions     (146)   (132) 
                              ------  ------ 
 
                              55,994  52,488 
                              ------  ------ 
 
   3.    Net Operating Costs 
 
                                            Six months ended 30th June 
 
                                                        2022      2021 
                                                        US$m      US$m 
 
 
 Cost of sales                                      (13,407)  (13,210) 
 Other operating income                                  250       282 
 Selling and distribution costs                      (1,984)   (1,970) 
 Administration expenses                             (1,128)   (1,092) 
 Other operating expenses                               (76)     (133) 
                                                   ---------  -------- 
 
                                                    (16,345)  (16,123) 
                                                   ---------  -------- 
 
 In relation to the COVID-19 pandemic, the Group had received 
  government grants and rent concessions of US$23 million 
  (2021: US$34 million) and US$15 million (2021: US$26 million), 
  respectively, for the six months ended 30th June 2022. These 
  subsidies were accounted for as other operating income. 
 
 Net operating costs included the following 
  gains/(losses) from non-trading items: 
 
 Change in fair value of other investments              (30)      (56) 
 Impairment of assets                                    (6)         - 
 Sale of businesses                                        5         - 
 Restructuring of businesses                             (1)      (35) 
 Other                                                   (3)         - 
 
                                                        (35)      (91) 
                                                   ---------  -------- 
 
   4.    Share of Results of Associates and Joint Ventures 
 
                                      Six months ended 30th June 
 
                                                     2022   2021 
                                                     US$m   US$m 
 
 By business: 
 Jardine Pacific                                     (54)     49 
 Jardine Motors                                       150     93 
 Hongkong Land                                        143    115 
 DFI Retail                                          (65)   (28) 
 Mandarin Oriental                                    (1)   (15) 
 Jardine Cycle & Carriage                              93     62 
 Astra                                                228    202 
 Corporate                                           (11)    (8) 
                                                    -----  ----- 
 
                                                      483    470 
                                                    -----  ----- 
 
 Share of results of associates and joint 
  ventures included the following gains/(losses) 
  from non-trading items: 
 
 Change in fair value of investment properties       (21)    (5) 
 Change in fair value of other investments              7     30 
 Impairment of Assets                               (113)   (14) 
 Other                                                  -      1 
 
                                                    (127)     12 
                                                    -----  ----- 
 

Results are shown after tax and non-controlling interests in the associates and joint ventures.

In relation to the COVID-19 pandemic, included in share of results of associates and joint ventures were the Group's share of the government grants and rent concessions of US$19 million (2021: US$13 million) and US$9 million (2021: US$10 million), respectively, for the six months ended 30th June 2022.

   5.    Tax 
 
                                        Six months ended 30th June 
 
                                                       2022   2021 
                                                       US$m   US$m 
 
 
 Tax charged to profit and loss is analysed 
  as follows: 
 
 Current tax                                          (485)  (379) 
 Deferred tax                                            46     38 
                                                      -----  ----- 
 
                                                      (439)  (341) 
                                                      -----  ----- 
 
 China                                                 (53)  (106) 
 Southeast Asia                                       (370)  (220) 
 United Kingdom                                         (5)    (4) 
 Rest of the world                                     (11)   (11) 
                                                      -----  ----- 
 
                                                      (439)  (341) 
                                                      -----  ----- 
 
 Tax relating to components of other comprehensive 
  income or expense is analysed as follows: 
 
 Remeasurements of defined benefit plans                  -      1 
 Cash flow hedges                                      (11)   (18) 
 
                                                       (11)   (17) 
                                                      -----  ----- 
 

Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.

Share of tax charge of associates and joint ventures of US$205 million (2021: US$160 million) is included in share of results of associates and joint ventures. Share of tax charge of US$21 million (2021: US$8 million) is included in other comprehensive income of associates and joint ventures.

   6.    Earnings/(Loss) per Share 

Basic earnings per share are calculated on profit attributable to shareholders of US$423 million (2021: loss of US$117 million) and on the weighted average number of 288 million (2021: 331 million) shares in issue during the period.

Diluted earnings per share are calculated on profit attributable to shareholders of US$423 million (2021: loss of US$117 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 288 million (2021: 331 million) shares in issue during the period.

The weighted average number of shares is arrived at as follows:

 
                                                             Ordinary shares 
                                                               in millions 
                                                           2022          2021 
 
 
 Weighted average number of shares in issue                 644           721 
 Company's share of shares held by subsidiaries           (356)         (390) 
                                                   ------------  ------------ 
 
    Weighted average number of shares for 
     basic earnings 
     per share calculation                                  288           331 
    Adjustment for shares deemed to be issued 
     for no consideration under the Senior 
     Executive Share 
     Incentive Schemes                                        -             - 
                                                   ------------  ------------ 
 
 Weighted average number of shares for 
  diluted earnings per share calculation                    288           331 
                                                   ------------  ------------ 
 

Additional basic and diluted earnings per share are also calculated based on underlying profit attributable to shareholders. A reconciliation of earnings is set out below:

 
                                                Six months ended 30th June 
 
                                           2022                             2021 
                                                                           Basic     Diluted 
                                          Basic      Diluted             (loss)/     (loss)/ 
                                       earnings     earnings            earnings    earnings 
                                      per share    per share           per share   per share 
                             U S$m          US$          US$    US$m         US$         US$ 
 
 
 Profit/(loss) attributable 
  to shareholders              423         1.47         1.47   (117)      (0.35)      (0.35) 
 Non-trading items (note 
  7)                           324                               732 
                             -----                            ------ 
 
 Underlying profit 
  attributable 
  to shareholders              747         2.60         2.60     615        1.86        1.86 
                             -----                            ------ 
 
   7.    Non-trading items 

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

 
                                    Six months ended 30th June 
 
                                                   2022   2021 
                                                   US$m   US$m 
 
 
 By business: 
 Jardine Pacific                                   (95)     16 
 Jardine Motors                                     (1)      - 
 Hongkong Land                                     (70)  (635) 
 DFI Retail                                         (4)   (12) 
 Mandarin Oriental                                    2   (71) 
 Jardine Cycle & Carriage                         (125)   (84) 
 Astra                                               99      2 
 Corporate and other interests                    (130)     52 
 
                                                  (324)  (732) 
                                                  -----  ----- 
 
 An analysis of non-trading items after 
  interest, tax and 
  non-controlling interests is set out below: 
 
 Change in fair value of investment properties 
                                                  -----  ----- 
 - Hongkong Land                                   (70)  (635) 
 - other                                              7   (56) 
                                                  -----  ----- 
                                                   (63)  (691) 
 Change in fair value of other investments        (148)    (1) 
 Impairment of assets                             (114)   (11) 
 Sale and closure of businesses                       4      - 
 Restructuring of businesses                        (1)   (25) 
 Other                                              (2)    (4) 
 
                                                  (324)  (732) 
                                                  -----  ----- 
 
 
   8.    Dividends 
 
                                       Six months ended 30th June 
 
                                                      2022   2021 
                                                      US$m   US$m 
 
 
   Final dividend in respect of 2021 of USc156.00 
    (2020: USc1 28 .00) per share                    1,114    921 
 Company's share of dividends paid on the 
  shares held by subsidiaries                        (666)  (546) 
                                                     -----  ----- 
 
                                                       448    375 
                                                     -----  ----- 
 

An interim dividend in respect of 2022 of USc55.00 (2021: USc44.00) per share amounting to a total of US$159 million (2021: US$318 million) is declared by the Board and will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2022.

   9.    Financial Instruments 

Financial instruments by category

The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2022 and 31st December 2021 are as follows:

 
                                                               Fair 
                                                              value     Fair value    Financial 
                                                            through        through       assets 
                                                Fair value   profit          other           at        Other     Total 
                                                of hedging      and  comprehensive    amortised    financial  carrying      Fair 
                                               instruments     loss         income        costs  liabilities    amount     value 
                                                      US$m     US$m           US$m         US$m         US$m      US$m      US$m 
 
 
 30th June 2022 
 Financial assets 
  measured at 
  fair value 
 Other investments 
 - equity investments                                    -    2,088              -            -            -     2,088     2,088 
 
   *    debt investments                                 -       10            762            -            -       772       772 
 
   *    limited partnership investment funds             -      105              -            -            -       105       105 
 Derivative financial 
  instruments                                          146        -              -            -            -       146       146 
                                               -----------  ------- 
 
                                                       146    2,203            762            -            -     3,111     3,111 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
 Financial assets 
  not measured at 
  fair value 
 Debtors                                                 -        -              -        8,207            -     8,207     8,049 
 Bank balances                                           -        -              -        6,370            -     6,370     6,370 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
                                                         -        -              -       14,577            -    14,577    14,419 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
 Financial liabilities 
  measured at 
  fair value 
 Derivative financial 
  instruments                                         (19)        -              -            -            -      (19)      (19) 
 Contingent consideration 
  payable                                                -      (9)              -            -            -       (9)       (9) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
                                                      (19)      (9)              -            -            -      (28)      (28) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
 Financial liabilities 
  not measured at 
  fair value 
 Borrowings                                              -        -              -            -     (16,600)  (16,600)  (16,092) 
 Lease liabilities                                       -        -              -            -      (3,613)   (3,613)   (3,613) 
   Trade and other 
    payable excluding 
    non-financial 
    liabilities                                          -        -              -            -      (7,666)   (7,666)   (7,666) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
                                                         -        -              -            -     (27,879)  (27,879)  (27,371) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 

Financial instruments by category

 
                                                               Fair 
                                                              value     Fair value    Financial 
                                                            through        through       assets 
                                                Fair value   profit          other           at        Other     Total 
                                                of hedging      and  comprehensive    amortised    financial  carrying      Fair 
                                               instruments     loss         income        costs  liabilities    amount     value 
                                                      US$m     US$m           US$m         US$m         US$m      US$m      US$m 
 
 
 31st December 
  2021 
 Financial assets 
  measured at 
  fair value 
 Other investments 
 
   *    equity investments                               -    2,055              -            -            -     2,055     2,055 
 
   *    debt investments                                 -        -            777            -            -       777       777 
 
   *    limited partnership investment funds             -      122              -            -            -       122       122 
 Derivative financial 
  instruments                                           54        -              -            -            -        54        54 
                                               -----------  ------- 
 
                                                        54    2,177            777            -            -     3,008     3,008 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
 Financial assets 
  not measured at 
  fair value 
 Debtors                                                 -        -              -        7,993            -     7,993     8,054 
 Bank balances                                           -        -              -        7,282            -     7,282     7,282 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
                                                         -        -              -       15,275            -    15,275    15,336 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
 Financial liabilities 
  measured at 
  fair value 
 Derivative financial 
  instruments                                         (78)        -              -            -            -      (78)      (78) 
 Contingent consideration 
  payable                                                -      (9)              -            -            -       (9)       (9) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
                                                      (78)      (9)              -            -            -      (87)      (87) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
 Financial liabilities 
  not measured at 
  fair value 
 Borrowings                                              -        -              -            -     (16,658)  (16,658)  (16,944) 
 L ease liabilities                                      -        -              -            -      (3,834)   (3,834)   (3,829) 
   Trade and other 
    payable excluding 
    non-financial 
    liabilities                                          -        -              -            -      (7,371)   (7,371)   (7,371) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 
                                                         -        -              -            -     (27,863)  (27,863)  (28,144) 
                                               -----------  -------  -------------  -----------  -----------  --------  -------- 
 

Fair value estimation

 
 (i)   Financial instruments that are measured at fair value 
        For financial instruments that are measured at fair value 
        in the balance sheet, the corresponding fair value measurements 
        are disclosed by level of the following fair value measurement 
        hierarchy: 
 (a)   Quoted prices (unadjusted) in active markets for identical 
        assets or liabilities ('quoted prices in active markets') 
        The fair values of listed securities and bonds are based 
        on quoted prices in active markets at the balance sheet 
        date. The quoted market price used for listed investments 
        held by the Group is the current bid price. 
 (b)   Inputs other than quoted prices in active markets that 
        are observable for the asset or liability, either directly 
        or indirectly ('observable current market transactions') 
        The fair values of derivative financial instruments are 
        determined using rates quoted by the Group's bankers 
        at the balance sheet date. The rates for interest rate 
        swaps and caps, cross-currency swaps and forward foreign 
        exchange contracts are calculated by reference to market 
        interest rates and foreign exchange rates. 
        The fair values of unlisted investments mainly include 
        club and school debentures, are determined using prices 
        quoted by brokers at the balance sheet date. 
 (c)   Inputs for assets or liabilities that are not based on 
        observable market data ('unobservable inputs') 
        The fair values of other unlisted equity investments 
        and 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 30th June 2022 and the year ended 31st December 2021.

The table below analyses financial instruments carried at fair value at 30th June 2022 and

31st December 2021, by the levels in the fair value measurement hierarchy:

 
                                                 Quoted    Observable 
                                                 prices       current 
                                              in active        market  Unobservable 
                                                markets  transactions        inputs  Total 
                                                   US$m          US$m          US$m   US$m 
 
 
  30th June 2022 
  Assets 
  Other investments 
                                              ---------  ------------  ------------  ----- 
 
  - equity investments                            1,824            53           211  2,088 
  - debt investments                                762             -            10    772 
  - limited partnership investment 
   funds                                              -             -           105    105 
 
                                                  2,586            53           326  2,965 
  Derivative financial instruments 
   at 
   fair value 
 
    *    through other comprehensive income           -           144             -    144 
 
    *    through profit and loss                      -             2             -      2 
 
                                                  2,586           199           326  3,111 
                                              ---------  ------------  ------------  ----- 
  Liabilities 
  Contingent consideration 
   payable                                            -             -           (9)    (9) 
  Derivative financial instruments 
   at 
   fair value 
 
    *    through other comprehensive income           -          (19)             -   (19) 
 
                                                      -          (19)           (9)   (28) 
                                              ---------  ------------  ------------  ----- 
 
  31st December 2021 
  Assets 
  Other investments 
                                              ---------  ------------  ------------  ----- 
 
  - equity investments                            1,565            53           437  2,055 
  - debt investments                                777             -             -    777 
  - limited partnership investment 
   funds                                              -             -           122    122 
 
 
                                                  2,342            53           559  2,954 
  Derivative financial instruments 
   at 
   fair value 
  - through other comprehensive 
   income                                             -            42             -     42 
 
    *    through profit and loss                      -            12             -     12 
 
                                                  2,342           107           559  3,008 
                                              ---------  ------------  ------------  ----- 
  Liabilities 
  Contingent consideration 
   payable                                            -             -           (9)    (9) 
  Derivative financial instruments 
   at 
   fair value 
 
    *    through other comprehensive income           -          (78)             -   (78) 
 
                                                      -          (78)           (9)   (87) 
                                              ---------  ------------  ------------  ----- 
 

During the six months ended 30th June 2022, equity investments amounted to US$240 million was transferred from 'Unobservable inputs' to 'Quoted prices in active markets'. There were no transfers among the three categories for the year ended 31st December 2021.

Movement of unlisted equity and debt investments, and limited partnership investment funds, which are valued based on unobservable inputs during the year ended 31st December 2021 and six months ended 30th June 2022 are as follows:

 
                                                              US$m 
 
 
  At 1st January 2021                                          379 
  Exchange differences                                         (4) 
  Additions                                                    152 
  Net change in fair value during the year included 
   in profit and loss                                           32 
                                                             ----- 
 
  At 31st December 2021 and 1st January 
   2022                                                        559 
  Exchange differences                                        (10) 
  Additions                                                     33 
  Disposals                                                    (5) 
  Transfer to 'Quoted prices in active markets'              (240) 
  Net change in fair value during the period included 
   in profit and loss                                         (11) 
                                                             ----- 
 
  At 30th June 2022                                            326 
                                                             ----- 
 
 
 (ii)   Financial instruments that are not measured at fair value 
         The fair values of current debtors, bank balances and 
         other liquid funds, current creditors,current borrowings 
         and current lease liabilities are assumed to approximate 
         their carrying amounts due to the short-term maturities 
         of these assets and liabilities. 
         The fair values of long-term borrowings are based on market 
         prices or are estimated using the expected future payments 
         discounted at market interest rates. The fair values of 
         non-current lease liabilities are estimated using the 
         expected future payments discounted at market interest 
         rates. 
 

10. Notes to Consolidated Cash Flow Statement

 
 (a)   Purchase of associates and joint ventures for the six months ended 30th June 2022 mainly included US$84 
       million for Hongkong Land's investments in the Chinese mainland, US$24 million for Jardine Cycle & Carriage's 
       additional interest in Refrigeration Electrical Engineering Corporation, US$45 million for Astra's investment 
       in a toll road concession business and US$38 million for Corporate's additional investment in Livi Bank 
       Limited in Hong Kong. 
       Purchase for the six months ended 30th June 2021 mainly included US$249 million for Hongkong Land's investments 
       in the Chinese mainland. 
 (b)         Purchase of other investments for the six months ended 30th June 2022 mainly included Astra's acquisition 
              of securities of US$191 million, and Astra's investments in healthcare services and a technology-based 
              logistics startup of US$74 million and US$15 million, respectively. 
              Purchase for the six months ended 30th June 2021 mainly included Astra's acquisition of securities. 
 (c)   Advances to and repayments to associates and joint ventures for the six months ended 30th June 2022 mainly 
        included Hongkong Land's advances and repayments to its property joint ventures. 
        Advances for the six months ended 30th June 2021 included US$216 million for Hongkong Land's advances 
        and repayments to its property joint ventures and US$7 million for Mandarin Oriental's advances to its 
        associate and joint venture hotels. 
 (d)   Advances from and repayments from associates and joint ventures for the six months ended 30th June 2022 
        and 2021 mainly included advances from and repayments from Hongkong Land's joint ventures. 
 (e)   Sale of other investments for the six months ended 30th June 2022 mainly included sale of securities 
        in Astra. 
        Sale for the six months ended 30th June 2021 comprised sale of securities of US$132 million and US$71 
        million, respectively, in Astra and Corporate. 
 (f)   Change in interests in subsidiaries 
 
 
                         Six months ended 30th June 
 
                                        2022   2021 
                                        US$m   US$m 
 
 
 Increase in attributable interests 
 
   *    Hongkong Land                  (279)      - 
 
   *    Jardine Cycle & Carriage        (73)      - 
 
   *    other                            (8)   (35) 
                                       -----  ----- 
 
                                       (360)   (35) 
                                       -----  ----- 
 

Increase in attributable interests in other subsidiaries for the six months ended 30th June 2021 included US$17 million and US$18 million for Jardine Cycle & Carriage's additional 29% and 25% interests in Cycle & Carriage Bintang and Republic Auto, respectively.

11. Capital Commitments and Contingent Liabilities

Total capital commitments at 30th June 2022 and 31st December 2021 amounted to US$2,713 million and US$2,864 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 14th 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. The proceedings, which were commenced in April 2021, are still ongoing. It is anticipated that the court appraisal process will not be concluded for at least a further 12 months. 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.

The most significant of such transactions relate to the purchases of motor vehicles and spare parts from the Group's associates and joint ventures in Indonesia including PT Toyota-Astra Motor, PT Astra Honda Motor and PT Astra Daihatsu Motor. Total cost of motor vehicles and spare parts purchased for the six months ended 30th June 2022 amounted to US$1,787 million (2021: US$2,198 million). The Group also sells motor vehicles and spare parts to its associates and joint ventures in Indonesia including PT Astra Honda Motor, PT Astra Daihatsu Motor and PT Tunas Ridean. Total revenue from sales of motor vehicles and spare parts for the six months ended 30th June 2022 amounted to US$344 million (2021: US$271 million).

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.

Jardine Matheson Holdings Limited

Principal Risks and Uncertainties

The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year.

-- Economic Risk

-- Commercial Risk

-- Financial and Treasury Risk

-- Concessions, Franchises and Key Contracts Risk

-- Regulatory and Political Risk

-- Pandemic and Natural Disasters Risk

-- Cybersecurity Risk

-- Investment, Strategic Transactions and Partnerships Risk

-- People Risk

-- Environmental and Climate Risk

For greater detail, please refer to pages 74 to 78 of the Company's 2021 Annual Report, a copy of which is available on the Company's website at www.jardines.com.

Responsibility Statement

The Directors of the Company confirm to the best of their knowledge that:

   (a)   the condensed financial statements have been prepared in accordance with IAS 34; and 

(b) the interim management report includes a fair review of all information required to be disclosed by the Disclosure Guidance and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Conduct Authority of the United Kingdom.

For and on behalf of the Board

John Witt

Graham Baker

Directors

28th July 2022

Dividend Information for Shareholders

The interim dividend of USc55 per share will be payable on 12th October 2022 to shareholders on the register of members at the close of business on 19th August 2022. The shares will be quoted ex-dividend on 18th August 2022 and the share registers will be closed from 22nd to 26th August 2022, 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 2022 interim dividend by notifying the United Kingdom transfer agent in writing by 23rd September 2022. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing on 28th September 2022.

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 19th August 2022, must submit the relevant documents to M & C Services Private Limited, the Singapore branch registrar, by no later than 5.00 p.m. (local time) on 18th August 2022.

The Jardine Matheson Group

Jardine Matheson is a diversified Asian-based group founded in China in 1832, with unsurpassed experience in the region. It has a broad portfolio of market-leading businesses, which represent a combination of cash generating activities and long-term property assets and are closely aligned to the increasingly prosperous consumers of the region. The Group's businesses aim to produce sustainable returns by providing their customers with high quality products and services. The Group is committed to driving long-term sustainable success in our businesses and our communities.

Jardine Matheson operates principally in China and Southeast Asia, where its subsidiaries and affiliates benefit from the support of the Group's extensive knowledge of the region and its long-standing relationships. These companies are active in the fields of motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, transport services, restaurants, luxury hotels, financial services, heavy equipment, mining and agribusiness.

Jardine Matheson holds interests in Jardine Pacific (100%), Jardine Motors (100%), Hongkong Land (52.6%), DFI Retail Group (77.6%), Mandarin Oriental (79.5%) and Jardine Cycle & Carriage (75.9%) ('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 on the London Stock Exchange, with secondary listings in Bermuda and Singapore. Jardine Matheson Limited operates from Hong Kong and provides management services to Group companies.

- end -

For future information, please contact:

 
Jardine Matheson Limited 
Graham Baker / Max Sunarcia    (852) 2843 8218 / 8266 
 
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 30th June 2022 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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END

IR PPUMAMUPPUMR

(END) Dow Jones Newswires

July 28, 2022 08:42 ET (12:42 GMT)

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