MCL First Quarter 2010 Financ

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Hongkong Land Holding Ltd. (Sing.Reg) (HKLD)

UK 100

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	Three months ended 31st March
	2010	2009	Change	2010	Change
	US$m	US$m	%	S$m	%
Revenue	0.2	8.3	- 97	0.3	- 98
Profit before tax	47.1	2.0	n/m	66.4	n/m
Profit attributable to shareholders	48.7	1.4	n/m	68.5	n/m
	US¢	US¢		S¢
Earnings per share	13.15	0.38	n/m	18.53	n/m
	At 31.3.2010	At 31.12.2009	Change	At 31.3.2010	Change
	US$m	US$m	%	S$m	%
Shareholders' funds	583.4	533.2	9	817.6	9
	US$	US$		S$
Net asset value per share	1.58	1.44	10	2.21	9

MCL Land Limited
Consolidated Profit and Loss Account for the three months ended 31st March

			2010	2009	Change
		Note	US$'000	US$'000	%

Revenue		2	228	8,304	- 97
Cost of sales			(85)	(5,255)	- 98

Gross profit			143	3,049	- 95

Other income		3	51,350	331	n/m
Marketing expenses			(2,480)	(53)	n/m
Administrative expenses			(573)	(949)	- 40
Share of joint ventures' results (net of tax)			(1,305)	(409)	219

Profit before tax		2	47,135	1,969	n/m

Tax		4	1,521	(581)	n/m
Profit after tax attributable to shareholders
of the Company			48,656	1,388	n/m

			US¢	US¢	%

Earnings per share ("EPS") attributable to
shareholders
- basic and diluted*		5	13.15	0.38	n/m

n/m = not meaningful

*	Diluted EPS is the same as basic EPS, as there were no outstanding, dilutive potential ordinary shares.

MCL Land Limited
Consolidated Statements of Comprehensive Income and Changes in Equity
for the three months ended 31st March

Consolidated Statement of Comprehensive Income for the three months ended 31st March

		2010		2009
		US$'000		US$'000

Profit after tax		48,656		1,388

Other comprehensive income/(expenses):
Translation difference		1,590		(20,974)

Total comprehensive income/(loss) attributable to shareholders
of the Company		50,246		(19,586)

Consolidated Statement of Changes in Equity for the three months ended 31st March


	Attributable to shareholders
	Share	Translation	Retained	Total
	capital	reserve	earnings	equity
	US$'000	US$'000	US$'000	US$'000
2010
Balance at 1st January	276,657	120,504	136,067	533,228

Total comprehensive income for the financial period	-	1,590	48,656	50,246

Balance at 31st March	276,657	122,094	184,723	583,474

2009
Balance at 1st January	276,657	109,383	7,909	393,949

Total comprehensive (loss)/income for the financial period	-	(20,974)	1,388	(19,586)

Balance at 31st March	276,657	88,409	9,297	374,363


The number of issued ordinary shares as at 31st March 2010 was 369,985,977 (2009: 369,985,977). The Company did not hold any treasury shares as at 31st March 2010 and 2009.

MCL Land Limited
Consolidated Balance Sheet

		At	At
		31.3.2010	31.12.2009
	Note	US$'000	US$'000
Non-current assets ¹
Plant and equipment		291	346
Investment properties		15,916	15,382
Investments in joint ventures		29,053	30,317
Deferred tax assets		2,027	690
		47,287	46,735
Current assets ²
Development properties for sale		608,772	543,409
Amounts owing by joint ventures		72,742	72,466
Debtors and prepayments		95,459	67,534
Bank balances		227,776	192,464
		1,004,749	875,873

Total assets		1,052,036	922,608

Non-current liabilities ³
Borrowings	6	83,186	90,194
Deferred tax liabilities		282	270
Creditors		5,813	7,254
		89,281	97,718
Current liabilities ⁴
Borrowings	6	4,996	9,550
Amounts owing to joint venture		483	482
Creditors		340,936	249,038
Current tax liabilities		32,866	32,592
		379,281	291,662

Total liabilities		468,562	389,380

Net assets		583,474	533,228

Equity:
Share capital and reserves
Share capital		276,657	276,657
Translation reserve		122,094	120,504
Retained earnings		184,723	136,067
Shareholders' funds		583,474	533,228

Net asset value per share		US$1.58	US$1.44

Explanatory notes on material variances:
¹	The increase in non-current assets at 31.3.2010 as compared to 31.12.2009 is mainly due to higher deferred tax assets provided for marketing expenses and utilisation of prior year losses. This is partially offset by the Group's share of losses incurred by the Group's joint ventures.
²	The increase in current assets is mainly due to higher development properties for sale from the construction of D'Pavilion, The Peak@Balmeg, D'Mira and The Estuary. In addition, outstanding progress billings and sales proceeds collected from the Group's development properties resulted in higher debtors and bank balances, respectively.
³	The lower non-current liabilities at 31.3.2010 as compared to 31.12.2009 is mainly due to repayment of long-term bank loans during the financial period from progress billings collected from the Group's development properties.
⁴	The higher current liabilities at 31.3.2010 as compared to 31.12.2009 is mainly due to the increase in progress billings collected from the Group's development properties.

MCL Land Limited
Company Balance Sheet

	At	At
	31.3.2010	31.12.2009
	US$'000	US$'000
Non-current assets
Plant and equipment	270	325
Interests in subsidiaries	57,643	57,561
Investments in joint ventures	28,523	28,482
	86,436	86,368

Current assets
Amounts owing by subsidiaries	341,348	273,493
Amounts owing by joint ventures	72,742	72,466
Debtors and prepayments	272	318
Bank balances	149,495	135,281
	563,857	481,558

Total assets	650,293	567,926

Current liabilities
Amounts owing to subsidiaries	152,887	126,061
Amounts owing to joint venture	483	482
Creditors	2,500	3,734
Current tax liabilities	933	721
	156,803	130,998

Total liabilities	156,803	130,998

Net assets	493,490	436,928

Equity:
Share capital and reserves
Share capital	276,657	276,657
Translation reserve	102,857	102,236
Retained earnings	113,976	58,035
Shareholders' funds	493,490	436,928

Net asset value per share	US$1.33	US$1.18

MCL Land Limited
Company Statements of Comprehensive Income and Changes in Equity
for the three months ended 31st March

Company Statement of Comprehensive Income for the three months ended 31st March
				2010	2009
				US$'000	US$'000

Profit/(Loss) after tax				55,941	(51,205)

Other comprehensive income/(expenses):
	Translation difference			621	(25,509)

Total comprehensive income/(loss) attributable to shareholders
	of the Company			56,562	(76,714)



Company Statement of Changes in Equity for the three months ended 31st March

		Attributable to shareholders
		Share	Translation	Retained	Total
		capital	reserve	earnings	equity
		US$'000	US$'000	US$'000	US$'000

2010
Balance at 1st January		276,657	102,236	58,035	436,928

Total comprehensive income for the financial period		-	621	55,941	56,562

Balance at 31st March		276,657	102,857	113,976	493,490



2009
Balance at 1st January		276,657	96,048	104,815	477,520

Total comprehensive loss for the financial period		-	(25,509)	(51,205)	(76,714)

Balance at 31st March		276,657	70,539	53,610	400,806

MCL Land Limited
Consolidated Statement of Cash Flows for the three months ended 31st March

			2010	2009
		Note	US$'000	US$'000
Profit before tax			47,135	1,969
Non-cash items
	Interest income		(246)	(302)
	Share of joint ventures' results		1,305	409
	Depreciation		26	37
	Write back of impairment charge on development properties for sale	3	(50,897)	-
	Profit on disposal of plant & equipment		(21)	-
	Unrealised translation losses		1	-
			(49,832)	144
Operating (loss)/profit before working capital changes			(2,697)	2,113

Changes in working capital
	Development properties for sale		(13,439)	(17,498)
	Amounts owing by joint ventures		(173)	(1,041)
	Debtors and prepayments		(27,651)	11,277
	Creditors		90,022	15,571
			48,759	8,309
Cash flows generated from operations			46,062	10,422

	Interest received		127	294
	Income tax refunded/(paid)		412	(609)
			539	(315)
	Net cash flows generated from operating activities ⁵		46,601	10,107

Cash flows from investing activities
	Purchase of plant and equipment		(5)	(2)
	Net proceeds from sale of plant and equipment		57	-
	Net cash flows generated from/(used in) investing activities		52	(2)

Cash flows from financing activities
	Drawdown of loans		-	297
	Repayment of loans		(11,682)	(33,856)
	Net cash flows used in financing activities ⁶		(11,682)	(33,559)

Net change in cash and cash equivalents			34,971	(23,454)
Cash and cash equivalents at the beginning of the financial period			192,464	131,800
Effect of exchange rate changes			341	(6,997)
Cash and cash equivalents at the end of the financial period			227,776	101,349

Explanatory notes on material variances:
	⁵	The net cash flows generated from operating activities for the period ended 31st March 2010 relate mainly to increased progress billings in respect of the Group's development properties, partially offset by increased progress billings not yet received.
	⁶	The net cash flows used in financing activities for the period ended 31st March 2010 relate mainly to long-term bank loans repaid from collected progress billings.

MCL Land Limited
Notes
1	Accounting policies and basis of preparation

	The financial statements contained in this announcement are prepared in accordance with the accounting policies and methods of computation set out in the 2009 audited accounts, which are based on International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies set out in the 2009 audited accounts except for the adoption of standards, amendments and interpretations to existing standards which are relevant to its operations as set out below:
	Amendment to IFRS 2	Group Cash-settled Share-based Payment Transactions
	Amendment to IFRS 5	Non-current Assets Held for Sale and Discontinued Operations
	Amendment to IAS 1	Presentation of Financial Statements
	Amendment to IAS 39	Eligible Hedged Items
	IFRIC 17	Distribution of Non-cash Assets to Owners
	The adoption of the above amendments and interpretations did not have a material impact on the results of the Group.

2	Profit
			Group
	For the three months ended 31st March		2010	2009	Change
			US$'000	US$'000	%

	Profit before tax is determined after including:
	Write back of impairment charge on development
		properties for sale (Note 3)	50,897	-	n/m
	Net exchange gain		2	1	100
	Rental income		228	267	- 15
	Interest income		246	302	- 19
	Profit on disposal of plant and equipment		21	-	n/m
	Depreciation on plant and equipment		(24)	(37)	- 35

	n/m = not meaningful

3	Other income

	Included in the income for the three months ended 31st March 2010 is a write back of an impairment charge on the Group's development properties for sale amounting to US$50,897,000 (2009: Nil).

4	Tax

	The provision for income tax is based on the statutory tax rates prevailing in the respective countries in which Group companies operate after taking into account expenses which are not tax deductible, income not subject to tax and Group tax relief.

5	Earnings per share *
			Group
	For the three months ended 31st March		2010	2009

	Basic earnings per share*

	Profit attributable to shareholders (US$'000)		48,656	1,388

	Weighted average number of ordinary shares in issue ('000)		369,986	369,986

	Basic earnings per share (US¢)		13.15	0.38

	*	Diluted EPS is the same as basic EPS, as there were no outstanding, dilutive potential ordinary shares.

6	Group borrowings
			Group
			At	At
			31.3.2010	31.12.2009
			US$'000	US$'000

	Borrowings due within one year
		- secured	4,996	9,550

	Borrowings due after one year
		- secured	83,186	90,194

			88,182	99,744

	Certain subsidiaries of the Company have mortgaged their development properties as security for bank loans. The net book value of properties mortgaged as at 31st March 2010 was US$261.2 million (31st December 2009: US$289.9 million).

7	Interested person transactions
	Name of interested person	Aggregate value of all interested person transactions (excluding transactions less than S$100,000 and transactions conducted under the shareholders' mandate pursuant to Rule 920)		Aggregate value of interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000)

8	Issue of shares

	There have been no changes in the issued share capital of the Company since 31st December 2009.

	There are no outstanding convertible instruments issued or treasury shares held by the Company as at 31st March 2010.

	The total number of issued shares (excluding treasury shares) as at 31st March 2010 and 31st December 2009 was 369,985,977.

9	Others

	The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event of a material and unusual nature. No significant transaction or event has occurred between 31st March 2010 and the date of this report.

MCL First Quarter 2010 Financ

For immediate release

MCL Land Limited

Companies

UK 100

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