Chairman's statement

Dear Shareholders,

I am pleased to provide you with an overview of the performance of the Jardine Matheson Group (the Group) over the past six months.

Overview of H1 2025  

The Group delivered an encouraging performance in the first half of 2025, with higher contributions from most of our portfolio companies, despite continuing uncertain global macroeconomic conditions. Underlying net profit increased to US$798 million, 11% higher than the first half of 2024 at CER and excluding the impact of Hongkong Land impairments in 2024. 

The Board has declared an interim dividend of US$0.60 per share, unchanged from the prior year.   

Recent developments 

The Group’s evolution from an owner-operator to a long-term, engaged investor in our portfolio companies continued in the period. We are focused on delivering outstanding, long-term returns for our shareholders through our investments in leading businesses across Asia, and have set ambitious financial targets to support this strategy.

On 29 May 2025, the Company announced the appointment of Lincoln Pan as Chief Executive Officer with effect from 1 December 2025, succeeding John Witt, who will retire at the end of November. Lincoln will join from PAG, the largest fully diversified alternative investment business in the Asia Pacific region. On behalf of the Board, I would like to thank John for his enormous contribution to the Group over the past 32 years. As Group Managing Director since 2020, he has led Jardines through a challenging period, including navigating the global pandemic. His key achievements include implementing effective leadership succession in our key portfolio companies and overseeing the simplification of our corporate structure, both of which have positioned the Group strongly as we transition into the next stage of our growth.

The Company’s Board was further strengthened during the first half, with the appointment of Ming Lu and Tim Wise as independent non-executive directors in February and May 2025, respectively.

We would like to thank Michael Wu, who stepped down from the Board in May 2025, for his contribution to the Company and the wider Group over many years.

The Board now consists of nine directors, the majority (56%) of whom are independent nonexecutive directors in line with the independence criteria set out in the UK Corporate Governance Code.

Our portfolio companies have also increased the independence of their boards and committees in the period.

Our role as an engaged investor

In the first half of the year, we continued to sharpen our focus on the key aspects of our role as an engaged investor: 

ensuring highly-qualified boards and leadership teams are in place; 

influencing portfolio company strategy and supporting performance through board representation; and

decisive portfolio management at the JM Corporate level, built on disciplined capital allocation and investment expertise. 

Conclusion

On behalf of the Board, I would like to thank our shareholders, valued partners, and the wider community for your ongoing support. Above all, I would like to thank our colleagues, whose outstanding efforts and dedication continue to be fundamental to our success.

Ben Keswick, Executive Chairman  

Group Managing Director's Review

Summary of performance 

The Group delivered encouraging results in the first half of 2025, despite continued uncertain trading conditions in many of its markets. Most of our portfolio companies saw a recovery in performance, but there were lower contributions from Astra’s HEMCE and Automotive divisions.   

Underlying net profit increased to US$798 million, (11% higher at CER and excluding Hongkong Land impairments in 2024).   

Details of the performance of each of our portfolio companies are provided in the ‘Performance of Portfolio Companies’ section below.

There were net non-trading losses of US$270 million in the first half of 2025, consisting primarily of fair value losses of US$138 million arising from the revaluation of the Group’s investment properties portfolio, net losses of US$88 million on the sale of businesses, a hotel and properties.

The Group’s cashflow from operating activities for the first half was 14% lower at US$2.6 billion (H1 2024: US$3.0 billion) and free cash flow at the parent company was 6% higher at  US$585 million (H1 2024: US$550 million), providing 2x cover for the Company’s dividend payments. The Group’s balance sheet remains strong, with gearing of 11%, 3% down from at the end of 2024.   

These results demonstrate, once again, the value of our diversified portfolio, enabling Jardines to produce a resilient profit and cash performance, despite challenging conditions in a number of our sectors and markets.

We have set challenging financial objectives to drive future growth and deliver superior TSR.

Strategic developments

Good progress was made in the first half of 2025 by our portfolio companies in implementing their strategies.

Hongkong Land

In the first half, Hongkong Land (HKL) announced the sale of nine office floors and selected retail space of One Exchange Square to the Hong Kong Stock Exchange for US$810 million.

The group’s Tomorrow’s CENTRAL transformation in Hong Kong is well underway. Two new luxury retail Maisons, along with several other new brands and concepts, are expected to open in the second half of 2025.

HKL also commenced a US$200 million share buyback programme, which is planned to continue until 31 December 2025, of which 67 percent had been completed up to 28 July 2025.

A new Investment Management team was established in the first half of the year, with a number of initiatives underway, focusing on capital recycling, new investments and third-party capital fundraising. 

The group is also making significant progress on its flagship Shanghai West Bund Central development, which is expected to be completed and launched in stages starting from the second half of 2025.

DFI Retail

DFI Retail (DFI) is focused on simplifying the group’s portfolio and divesting non-core businesses. During the first half, DFI completed the sale of its stakes in Yonghui and Robinsons Retail and announced the disposal of its Singapore Food business.   

As recently announced by DFI, a special dividend will be paid in the second half of the year, to be funded from the proceeds of business disposals by DFI as part of the simplification of its portfolio.  The Company will use the dividend to reduce its net debt, in line with our intention, communicated at the full year, of prioritising the paying down of debt in order to provide investment flexibility for the future.

Astra

In the first half of 2025, Astra continued to execute strategic initiatives in the automotive, renewable energy and industrial and logistics infrastructure sectors.

In April 2025, as part of Astra’s strategy of further strengthening its leading position in the used car sector, it entered into a partnership in which Toyota invested US$120 million for a 40% interest in Astra Digital Mobil (ADMO), with Astra retaining 60% ownership. ADMO owns OLXmobbi, a leading Indonesian integrated online-to-offline used car business. The partnership with Toyota will increase access to used cars, financing, insurance and aftersales for customers across Indonesia.

In June, in line with its strategy of building new earnings streams in renewable energy, United Tractors (UT) completed the acquisition of an additional 30.6% stake in Supreme Energy Sriwijaya (SES) for US$31 million.  SES is a 25.2% shareholder in Supreme Energy Rantau Dedap (SERD), which owns an operating geothermal project in South Sumatera.  The acquisition increased UT’s total direct and indirect shareholding in SERD to 40.4%. 

In July, as part of its strategy of benefitting from Indonesia’s rapidly growing industrial and logistics infrastructure market, Astra signed a conditional agreement to acquire 83.7% of Mega Manunggal Property (MMP), a Jakarta-listed industrial and logistics property developer. Upon completion, Astra will become the new controlling shareholder of MMP, and in line with capital market regulations, will carry out a mandatory tender offer. 

Following resilient performance over the past few years, Astra’s management is currently undertaking a comprehensive portfolio review to identify and assess initiatives that can be taken to enable the continued delivery of future growth and value in changing market conditions. The outputs from this review are expected in the first half of 2026. Jardines continues to view both Indonesia and Astra as strategic growth drivers and core long-term components of the Group’s portfolio. 

Jardine Cycle & Carriage (JC&C)

In line with JC&C’s focus as an engaged investor, JC&C is currently working with its portfolio companies to review business strategy, priorities and initiatives to deliver future growth and improve returns. The process is expected to complete by the first half of 2026.

Mandarin Oriental

Mandarin Oriental added four new hotels to its portfolio, bringing its total number of hotels under management to 44. It strengthened its European presence in April, opening Mandarin Oriental Lutetia, Paris and taking over the management of The Conservatorium Hotel in Amsterdam. In June, the group announced the management takeovers of properties in Venice and Malaysia. It also announced new management contracts in Puerto Rico and Suzhou, China in the period.

As part of its capital recycling strategy, the group completed the disposal of its 25% stake in its Miami hotel and agreed to the sale of its Munich hotel, which is expected to complete by the end of 2025. Mandarin Oriental also announced a significant investment in its Hong Kong and Bangkok hotels. 

Outlook

With strengthened leadership teams in place, executing new strategies across many of our portfolio companies, we believe that the Group is well-positioned to take advantage of opportunities for mid- and long-term growth.  For the full year, we expect results to be broadly in line with last year, excluding the impact of the HKL impairments recognised in 2024. 

John Witt, Group Managing Director 

Performance of portfolio companies

Certain financial information of the Group’s listed portfolio companies presented and referred to below represents the financial information of each respective business of the Group as reported within their own half year results announcement (100% basis), which we believe provides the reader with a better understanding of the relevant listed portfolio companies. 

ASTRA 

Astra contributed US$388 million of underlying profit to the Group.  Astra’s reported results were 4% lower than the same period last year, but its contribution to the Group was only 2% lower due to the increase in the Company’s ownership in JC&C, through which it holds its interest in Astra, over the past 12 months.  This was mainly due to weaker performances from its new car, mining services and coal mining operations, partly offset by improved earnings from financial services, agribusiness and infrastructure. Net income from Astra’s automotive and mobility division decreased by 8%, with lower sales volumes in a weaker national automotive market.  The group’s share of the car and motorcycle markets remained stable, despite reductions in both markets.  The group’s used car business saw improved contributions in the first half. The HEMCE division saw its net income decrease, as a result of lower contributions from coal mining and mining services, which were partly offset by improved contributions from gold mining and heavy equipment sales.  Komatsu heavy equipment sales increased by 27%, driven by stronger demand from all sectors. Revenues from the parts and services business also increased.  Net income from Astra’s financial services division increased by 6%, due to higher contributions from the consumer financing business on larger loan portfolios. The contribution from the group’s car-focused and motorcycle-focused financing businesses also increased. Net income from agribusiness increased by 40%, mainly due to higher crude palm oil selling prices.  Astra’s infrastructure division reported a 38% increase in net income, largely as a result of higher traffic volumes and tariffs.     

HONGKONG LAND

Excluding the impact of impairments in the Chinese mainland Build-to-sell (BTS) business, the overall underlying profit contribution by the group in the first half of 2025 increased by 11% from the prior year to US$320 million, primarily due to higher contributions from residential projects in Singapore.

Prime Properties Investments

Hong Kong

In Hong Kong, the group’s Central office portfolio experienced a healthy increase in enquiries in the first half of 2025, driven by improvements in capital market sentiment and the Initial Public Offering pipeline, as well as a flight to quality. Vacancy on a committed basis declined slightly, while negative rental reversions resulted in average office rents decreasing. 

Contributions from the LANDMARK portfolio temporarily declined, primarily due to planned retail tenant movements from the ongoing transformation works. Tenant sales experienced mild declines compared to the same period last year, but the ultra-high net worth segment remained resilient.

Singapore

In Singapore, HKL’s office portfolio continued to perform well and was effectively fully let.  Rental reversions were positive and average rents increased.

China (ex Hong Kong)

Results from the group’s CENTRAL series luxury retail malls business in China declined compared to the same period last year, primarily due to lower rental contributions from Macau. 

Build-to-sell

HKL will no longer deploy capital into new standalone BTS projects and is focused on winding down its existing inventory. The group’s net investment in this segment was US$7.3 billion, a decrease of US$0.5 billion from the end of 2024. 

Chinese mainland

Excluding the impairments, contributions from property sales on the Chinese mainland were higher than in the same period last year, primarily due to the timing of project completions. The Chinese mainland market remained challenging, however, and sales momentum across the group’s projects was below expectations, despite extensive government stimulus measures. 

In the first half of 2025, US$23 million of impairments were taken in respect of projects in Wuhan, where sales prices fell.

Singapore

In Singapore, the profit contribution from residential development projects was higher compared to the same period in 2024, primarily due to the completion of a large project which was fully sold. In the rest of Southeast Asia, contributions remained stable.

DFI RETAIL 

DFI reported 39% higher first-half underlying profit of US$105 million, with improved contributions from the group’s associates and strong performance by the Health and Beauty and Food segments on a like-for-like basis.

The Health and Beauty division reported increased profits in the first half compared to the same period last year, reflecting strong sales growth in both the Mannings and Guardian businesses. Convenience profit was lower than the same period last year, as a result of a one-off gain in the first half of 2024 from cigarette inventory purchased before tax increases were imposed in Hong Kong. Results for the group’s Food division on a like-for-like basis improved in the first half.  The sales performance of the Home Furnishings division remained challenged due to intense competition and shifts in basket mix, but effective cost control measures across markets supported a recovery in underlying profit. The group’s share of Maxim’s underlying profits improved from the same period last year, underpinned by continued cost optimisation and operational efficiency measures. The group’s results also benefitted from the disposals of Yonghui and Robinsons Retail. 

JARDINE PACIFIC

The JP group of companies reported underlying net profit of US$67 million, 30% higher than the same period in 2024, with improved performances from most businesses, partially offset by a lower contribution from Hactl. 

JEC saw higher sales and margins from its Hong Kong businesses, while its regional businesses delivered lower margins. JEC’s order book remains stable, although work secured was behind last year’s levels, with margins under some pressure. Gammon had a good first half, with profit growth driven by stronger margins, partly offset by higher overheads and reduced finance income. After a slow first quarter, the order book improved in the second quarter, although conditions remain challenging.   

Jardine Schindler delivered an improved result from the same period last year, with stronger performances in Service and Repairs, together with lower losses from the New Installation business. Hactl saw stable cargo volume, but profit decreased due to higher rebates and increased staff costs. Hactl’s market share remains strong, but uncertainty surrounding US tariffs will influence the future outlook of the business.

Jardine Pacific’s consumer businesses saw an encouraging return to profitability. Jardine Restaurants saw a material year-on-year improvement, transitioning from a loss last year to a small profit, driven by a structured transformation programme. Zung Fu reported a small profit for the first half, despite the challenging trading environment. The ongoing turnaround of the business drove lower operating costs and reduced financing costs through tight working capital management. 

ZHONGSHENG 

Jardine Matheson’s 21% interest in Zhongsheng yielded a profit contribution of US$60 million, 5% lower than the same period last year, amid persistent challenges in China’s auto market. Zhongsheng’s new car sales faced ongoing volume and margin pressures due to continuing intense competition and growth in the electric vehicle market. The after-sales services segment remained resilient.

JARDINE CYCLE & CARRIAGE

JC&C’s underlying net profit (excluding Astra) rose in the first half to US$73 million, primarily driven by foreign exchange gains and lower net financing costs.  There was a lower contribution on a combined basis from the Indonesia businesses, partially offset by improvements in Vietnam and Singapore. After accounting for non-trading items of US$158 million, which mainly comprised unrealised fair value losses related to non-current investments, the group’s profit attributable to shareholders (including Astra) was US$371 million, compared to US$483 million in the same period last year.

Indonesia

Astra contributed US$456 million to JC&C’s underlying profit, 8% down from the same period last year.  Tunas Ridean contributed US$10 million, 40% lower than the same period last year, mainly due to lower profits from its automotive and consumer financing operations. 

Vietnam

JC&C’s businesses in Vietnam contributed US$36 million to the group’s underlying net profit, up 17%.  THACO’s contribution increased by 10%, with stronger automotive sales.  Based on its first-quarter results, REE delivered a stronger performance, with higher earnings from its power generation business, as well as a higher contribution as a result of JC&C increasing its shareholding from 34.9% to 41.6%.   

Regional interests

Lower profit from the group’s Regional Interests, due to the absence of a contribution from Siam City Cement following its disposal in the second half of 2024, was partly offset by stronger earnings from Cycle & Carriage, whose contribution doubled as new car, commercial vehicle and used car sales all grew and aftersales throughput volume increased. 

MANDARIN ORIENTAL

The group’s underlying net profit was 6% higher than the same period last year at US$24 million.   Hotel management fee income increased by 14% as a result of RevPAR improvement in all regions, as well as margin optimisation and portfolio expansion. This growth was offset by continued investment in capabilities to support the group’s long-term strategy. The Owned Hotels in Hong Kong and Geneva delivered good growth in contributions, partially offset by a reduced contribution from Paris due to its disposal in mid-2024, and a lower contribution from London due to softening travel demand in that market.  The group incurred non-trading losses of US$88 million as a result of a non-cash revaluation of One Causeway Bay, compared to total non-trading losses of US$75 million in the same period last year.   

Click here to read the full announcement. 

^{∞ CER means Constant Exchange Rates.
^ 0.60 - Represents recurring dividends received from subsidiaries, associates, joint ventures and other investments, less corporate costs and net interest expenses.
∆ Excludes net borrowings of financial services companies. 
*  The Group uses ‘underlying net profit’ in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in note 7 to the condensed financial statements. Management considers this to be a key measure which provides additional information to enhance understanding of the Group’s underlying business performance.
#  At 30 June 2025 and 31 December 2024, respectively.
The interim dividend of US$0.60 per share will be payable on 15 October 2025 to shareholders on the register of members at the close of business on 22 August 2025 and will be available in cash with a scrip alternative.}