MCL Land Limited Half Yearly

Companies

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

UK 100

Latest directors dealings

6 hours ago ASOS
7 hours ago MJ Gleeson
7 hours ago Rolls-Royce Holdings
7 hours ago Crest Nicholson Holdings
8 hours ago Naked Wines

All directors dealings today

To:	Business Editor	6th August 2009
		For immediate release

Hongkong Land Limited
G M Brown	(852) 2842 8138

GolinHarris
Sue So	(852) 2501 7984

•	Completions of The Fernhill and Tierra Vue
•	Profit attributable to shareholders US$38.1 million

	Six months ended 30th June
	2009	2008	Change	2009	Change
	US$m	US$m	%	S$m	%
Revenue	144.1	0.7	n/m	209.5	n/m
Profit before tax	44.4	8.2	438	64.4	470
Profit attributable to shareholders	38.1	8.2	365	55.4	390
	US¢	US¢		S¢
Earnings per share	10.29	2.22	364	14.96	392
	At 30.6.2009	At 31.12.2008	Change	At 30.6.2009	Change
	US$m	US$m	%	S$m	%
Shareholders' funds	403.8	393.9	3	585.1	3
	US$	US$		S$
Net asset value per share	1.09	1.06	3	1.58	3

MCL Land Limited
Consolidated Statements of Comprehensive Income and Changes in Equity
for the three months ended 30th June


Consolidated Statement of Comprehensive Income for the three months ended 30th June

		2009		2008
		US$'000		US$'000

Profit after tax		36,694		3,184

Translation difference		18,196		6,614

Total comprehensive income attributable to shareholders		54,890		9,798



Consolidated Statement of Changes in Equity for the three months ended 30th June

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

2009
Balance at 1st April	276,657	88,409	9,297	374,363

Comprehensive income for the financial period	-	18,196	36,694	54,890

Dividend	-	-	(25,493)	(25,493)

Balance at 30th June	276,657	106,605	20,498	403,760



2008
Balance at 1st April	276,657	129,364	147,302	553,323

Comprehensive income for the financial period	-	6,614	3,184	9,798

Dividend	-	-	(27,091)	(27,091)

Balance at 30th June	276,657	135,978	123,395	536,030

MCL Land Limited
Consolidated Statements of Comprehensive Income and Changes in Equity
for the six months ended 30th June


Consolidated Statement of Comprehensive Income for the six months ended 30th June

		2009		2008
		US$'000		US$'000

Profit after tax		38,082		8,198

Translation difference		(2,778)		30,750

Total comprehensive income attributable to shareholders		35,304		38,948



Consolidated Statement of Changes in Equity for the six months ended 30th June

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

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

Comprehensive (loss)/income for the financial period	-	(2,778)	38,082	35,304

Dividend	-	-	(25,493)	(25,493)

Balance at 30th June	276,657	106,605	20,498	403,760



2008
Balance at 1st January	276,657	105,228	142,288	524,173

Comprehensive income for the financial period	-	30,750	8,198	38,948

Dividend	-	-	(27,091)	(27,091)

Balance at 30th June	276,657	135,978	123,395	536,030

MCL Land Limited
Consolidated Balance Sheet

		At	At
		30.6.2009	31.12.2008
	Note	US$'000	US$'000
Non-current assets ¹
Plant and equipment		142	212
Investment properties		15,785	15,985
Investments in joint ventures		32,788	34,739
Deferred tax assets		765	874
		49,480	51,810
Current assets ²
Development properties for sale		634,621	683,534
Amounts owing by joint ventures		62,862	62,018
Debtors and prepayments		54,931	80,797
Bank balances		173,200	131,800
		925,614	958,149

Total assets		975,094	1,009,959

Non-current liabilities ³
Borrowings	5	253,073	298,242
Deferred tax liabilities		458	459
Creditors		701	-
Retention money payable		6,636	7,137
		260,868	305,838
Current liabilities ⁴
Borrowings	5	17,251	14,871
Amounts owing to joint venture		455	459
Creditors		277,489	277,437
Current tax liabilities		15,271	17,405
		310,466	310,172

Total liabilities		571,334	616,010

Net assets		403,760	393,949

Equity:
Share capital and reserves
Share capital		276,657	276,657
Translation reserve		106,605	109,383
Retained earnings		20,498	7,909
Shareholders' funds		403,760	393,949

Net asset value per share		US$1.09	US$1.06

Explanatory notes on material variances:
1	The decrease in non-current assets at 30.6.2009 as compared to 31.12.2008 is mainly due to the loss incurred from the Group's joint ventures and translation loss.
2	The decrease in current assets is mainly due to lower development properties for sale from the completion of The Fernhill and Tierra Vue in March and June 2009 respectively. This is partially offset by higher bank balances arising from progress billings collected from the Group's development properties.
3	The lower non-current liabilities at 30.6.2009 as compared to 31.12.2008 is mainly due to repayment of longterm bank loans during the financial period from progress billings collected from the Group's development properties.
4	The higher current liabilities at 30.6.2009 as compared to 31.12.2008 is mainly due to the increase in short-term bank loans during the financial period partially offset by payment of income tax.

MCL Land Limited
Company Balance Sheet

	At	At
	30.6.2009	31.12.2008
	US$'000	US$'000
Non-current assets
Plant and equipment	120	182
Interests in subsidiaries	57,804	58,909
Investments in joint ventures	27,578	27,773
	85,502	86,864

Current assets
Amounts owing by subsidiaries	236,672	353,289
Amounts owing by joint ventures	62,862	62,018
Debtors and prepayments	281	280
Bank balances	120,342	70,916
	420,157	486,503

Total assets	505,659	573,367

Non-current liability
Borrowings	44,852	45,170

Current liabilities
Borrowings	17,251	9,034
Amounts owing to subsidiaries	68,953	35,564
Amounts owing to joint venture	455	459
Creditors	2,611	3,336
Current tax liabilities	135	2,284
	89,405	50,677

Total liabilities	134,257	95,847

Net assets	371,402	477,520

Equity:
Share capital and reserves
Share capital	276,657	276,657
Translation reserve	90,169	96,048
Retained earnings	4,576	104,815
Shareholders' funds	371,402	477,520

Net asset value per share	US$1.00	US$1.29

MCL Land Limited
Company Statements of Comprehensive Income and Changes in Equity
for the three months ended 30th June


Company Statement of Comprehensive Income for the three months ended 30th June

		2009		2008
		US$'000		US$'000

(Loss)/Profit after tax		(23,541)		3,231

Translation difference		19,630		6,143

Total comprehensive (loss)/income attributable to shareholders		(3,911)		9,374



Company Statement of Changes in Equity for the three months ended 30th June

	Attributable to shareholders
	Share	Translation	Retained	Total
	capital	Reserve	Earnings	equity
	US$'000	US$'000	US$'000	US$'000

2009
Balance at 1st April	276,657	70,539	53,610	400,806

Comprehensive income/(loss) for the financial period	-	19,630	(23,541)	(3,911)

Dividend	-	-	(25,493)	(25,493)

Balance at 30th June	276,657	90,169	4,576	371,402



2008
Balance at 1st April	276,657	114,402	84,610	475,669

Comprehensive income for the financial period	-	6,143	3,231	9,374

Dividend	-	-	(27,091)	(27,091)

Balance at 30th June	276,657	120,545	60,750	457,952

MCL Land Limited
Company Statements of Comprehensive Income and Changes in Equity
for the six months ended 30th June


Company Statement of Comprehensive Income for the six months ended 30th June

		2009		2008
		US$'000		US$'000

(Loss)/Profit after tax		(74,746)		2,887

Translation difference		(5,879)		27,184

Total comprehensive (loss)/income attributable to shareholders		(80,625)		30,071



Company Statement of Changes in Equity for the six months ended 30th June

	Attributable to shareholders
	Share	Translation	Retained	Total
	capital	Reserve	Earnings	Equity
	US$'000	US$'000	US$'000	US$'000

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

Comprehensive loss for the financial period	-	(5,879)	(74,746)	(80,625)

Dividend	-	-	(25,493)	(25,493)

Balance at 30th June	276,657	90,169	4,576	371,402



2008
Balance at 1st January	276,657	93,361	84,954	454,972

Comprehensive income for the financial period	-	27,184	2,887	30,071

Dividend	-	-	(27,091)	(27,091)

Balance at 30th June	276,657	120,545	60,750	457,952

MCL Land Limited
Consolidated Statement of Cash Flows

		Three months ended		Six months ended
		30.6.2009	30.6.2008	30.6.2009	30.6.2008
		US$'000	US$'000	US$'000	US$'000

Profit before tax		42,383	3,124	44,352	8,248
Non-cash items
	Interest income	(243)	(387)	(545)	(810)
	Financing charges
	Share of joint ventures' results	167	(1,131)	576	(6,072)
	Depreciation	35	43	72	86
	Loss on disposal of plant and equipment	1	-	1	-
	Unrealised translation gain	(2)	(10)	(2)	(9)
		(42)	(1,485)	102	(6,805)
Operating profit before working capital changes		42,341	1,639	44,454	1,443

Changes in working capital
	Development properties for sale	64,241	(191,864)	48,031	(277,828)
	Amounts owing by joint ventures	929	39,364	(112)	39,696
	Debtors and prepayments	13,426	30,253	24,703	144,213
	Creditors	(14,468)	26,732	1,103	44,880
		64,128	(95,515)	73,725	(49,039)
Cash flows generated from/(used in) operations		106,469	(93,876)	118,179	(47,596)

	Interest paid	(1,516)	(2,327)	(2,804)	(4,433)
	Interest received	263	374	557	846
	Income tax paid	(7,525)	(6,759)	(8,134)	(6,799)
		(8,778)	(8,712)	(10,381)	(10,386)
	Net cash flows generated from/(used in) operating activities ⁵	97,691	(102,588)	107,798	(57,982)

Cash flows from investing activities
	Purchase of plant and equipment	(4)	-	(6)	(10)
	Net cash flows used in investing activities	(4)	-	(6)	(10)

Cash flows from financing activities
	Drawdown of loans	51,357	148,605	51,654	206,868
	Repayment of loans	(56,483)	(46,136)	(90,339)	(140,479)
	Dividend paid	(25,493)	(27,091)	(25,493)	(27,091)
	Net cash flows (used in)/provided by financing activities ⁶	(30,619)	75,378	(64,178)	39,298

Net change in cash and cash equivalents		67,068	(27,210)	43,614	(18,694)
Cash and cash equivalents at the beginning of the
	financial period	101,349	91,280	131,800	78,419
Effect of exchange rate changes		4,783	1,048	(2,214)	5,393
Cash and cash equivalents at the end of the financial period		173,200	65,118	173,200	65,118

Explanatory notes on material variances:
5	The net generated from operating activities for the six months ended 30th June 2009 relates mainly to progress billings collected from the Group's development properties.
6	The net cash flows used in financing activities for the six months ended 30th June 2009 relates mainly to long-term bank loans repaid from the progress billings collected from the Group's development properties and dividend paid on 26th May 2009.

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 2008 audited accounts, which are based on International Financial Reporting Standards ('IFRS'). There have been no changes to the accounting policies set out in the 2008 audited accounts except for the adoption of the new standards, amendments and interpretations to the existing standards which are relevant to its operations shown below:
	IAS 1 (Revised 2007)	Presentation of Financial Statements
	IAS 23 (Revised 2007)	Borrowing Costs
	Amendments to IFRS 1 and	Cost of an investment in Subsidiary, Jointly Controlled Entity or
		Associate
	Amendment to IFRS 2	Share-based Payment
	Amendment to IFRS 7	Improving Disclosures about Financial Instruments
	IFRS 8	Operating Segments
	IFRIC 15	Agreements for Construction of Real Estate
	IFRIC 16	Hedges of a Net Investment in a Foreign Operation
	Improvements to IFRS (2008)	Amendments to IAS 1, 16, 19, 23, 27, 28, 36, 38, 39 and 40
	The adoption of the above standards, amendments and interpretations did not have a material impact on the results of the Group.

2	Profit

		Group
		Three months ended				Six months ended
		30.6.2009	30.6.2008		Change	30.6.2009	30.6.2008		Change
		US$'000	US$'000		%	US$'000	US$'000		%

	Profit before tax is determined after including:
	Net exchange (loss)/gain	(1)	(2)	-	50	-	12	-	100
	Rental income	278	353	-	21	545	718	-	24
	Interest income	243	387	-	37	545	810	-	33
	Depreciation on plant and equipment	(35)	(43)	-	19	(72)	(86)	-	16
	Loss on disposal of plant and equipment		-		n/m	(1)	-		n/m
	Loss on disposal of plant and equipment	(1)	-		n/m	(1)	-		n/m
	n/m = not meaningful

4	Earnings per share*

			Group
			Three months ended		Six months ended
			30.6.2009	30.6.2008	30.6.2009	30.6.2008

	Basic earnings per share*

	Profit attributable to shareholders (US$'000)		36,694	3,184	38,082	8,198

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

	Basic earnings per share (US¢)		9.92	0.86	10.29	2.22

	* Diluted EPS is the same as basic EPS, as there were no outstanding share options.

6	Interested person transactions
		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$100,000)
	Name of interested person
		US$'000	US$'000

	Three months ended 30th June 2009
	Jardine Matheson Limited
	- Internal audit fee	-	26

	Six months ended 30th June 2009
	Jardine Matheson Limited
	- Internal audit fee	-	95

5	Group borrowings

			Group
			At	At
			30.6.2009	31.12.2008
			US$'000	US$'000

	Borrowings due within one year
		- unsecured	17,251	9,034
		- secured	-	5,837
			17,251	14,871

	Borrowings due after one year
		- unsecured	44,852	45,170
		- secured	208,221	253,072
			253,073	298,242

			270,324	313,113

	Certain subsidiaries of the Company have mortgaged their development properties as security for bank loans. The net book value of properties mortgaged as at 30th June 2009 was US$350.6 million (31st December 2008: US$296.6 million).

7	Issue of shares
	There have been no changes in the issued share capital of the Company since 31st December 2008.
	There are no outstanding convertibles issued or treasury shares held by the Company as at 30th June 2009.
	The total number of issued share capital (excluding treasury shares) as at 30th June 2009 and 31st December 2008 was 369,985,977.

For further information, please contact:
MCL Land Limited
Steve Chu
Full text of the Financial Statements and Dividend Announcement for the six months ended 30th June 2009 can be accessed through the internet at www.mclland.com.sg.
	- end -