MCL Land Ltd 2008 Financial S

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

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Hongkong Land Limited
Y K Pang	(852) 2842 8428
G M Brown	(852) 2842 8138
	(852) 9612 3496

GolinHarris
Sue So	(852) 2501 7984

	Financial year ended 31 December
	2008	2007	Change	2008	Change
	US$m	US$m	%	S$m	%
Revenue	343.1	391.1	- 12	510.8	- 11
Write down of development properties for sale	(180.2)	-	n/m	(259.4)	n/m
(Loss)/Profit before tax	(93.9)	73.4	n/m	(131.9)	n/m
(Loss)/Profit attributable to shareholders	(107.3)	61.9	n/m	(151.8)	n/m
	US¢	US¢		S¢
(Loss)/Earnings per share	(29.00)	16.73	n/m	(41.03)	n/m
Gross dividend per share	6.95	7.32	- 5	10.00	-
	At 31.12.2008	At 31.12.2007	Change	At 31.12.2008	Change
	US$m	US$m	%	S$m	%
Shareholders' funds	393.9	524.2	- 25	566.9	- 25
	US$	US$		S$
Net asset value per share	1.06	1.42	- 25	1.53	- 25

			2008	2007	Change
		Note	US$'000	US$'000	%

Revenue		2	343,056	391,115	- 12
Cost of sales			(261,795)	(317,096)	- 17

Gross profit			81,261	74,019	10

Other operating (expenses)/income		3	(174,173)	6,375	n/m
Property related expenses			(2,215)	(2,578)	- 14
Administrative expenses			(2,949)	(6,219)	- 53
Share of joint ventures' results			4,128	1,815	127

(Loss)/Profit before tax		2	(93,948)	73,412	n/m

Tax		4	(13,340)	(11,521)	16

(Loss)/Profit after tax attributable to shareholders			(107,288)	61,891	n/m



			US¢	US¢	%

(Loss)/Earnings per share ('EPS') attributable to shareholders
	- basic and diluted*	6	(29.00)	16.73	n/m

		At	At
		31.12.2008	31.12.2007
	Note	US$'000	US$'000
Non-current assets 1
Plant and equipment		212	354
Investment properties		15,985	17,675
Investments in joint ventures		34,739	30,743
Deferred tax assets		874	319
		51,810	49,091
Current assets 2
Development properties for sale		683,534	761,363
Amounts owing by joint ventures		62,018	100,763
Debtors and prepayments		80,797	169,953
Bank balances		131,800	78,419
		958,149	1,110,498

Total assets		1,009,959	1,159,589

Non-current liabilities 3
Borrowings	8	298,242	227,863
Deferred tax liabilities		459	958
Retention money payable		7,137	6,337
		305,838	235,158
Current liabilities 4
Borrowings	8	14,871	94,760
Amounts owing to joint venture		459	139
Creditors		277,437	290,385
Current tax liabilities		17,405	14,974
		310,172	400,258

Total liabilities		616,010	635,416

Net assets		393,949	524,173

Equity:
Share capital and reserves
Share capital		276,657	276,657
Translation reserve		109,383	105,228
Retained earnings		7,909	142,288
Shareholders' funds		393,949	524,173

Net asset value per share		US$1.06	US$1.42

1	The increase in non-current assets at 31.12.2008 as compared to 31.12.2007 is mainly due to the profit contribution from the Group's joint ventures, partially offset by a US$1.0 million fair value loss for investment properties.
2	The decrease in current assets is mainly due to the US$180.2 million write down of the Group's development properties for sale, repayment of advances from the Group's joint ventures and progress billings collected from the Group's completed projects. This is partially offset by the acquisitions of land at Yishun Avenue 1, Nim Park and Casa Nassau which are included in the development properties for sale.
3	The higher non-current liabilities at 31.12.2008 as compared to 31.12.2007 arose mainly from long-term loans drawn down during the financial year to finance the land purchases.
4	The lower current liabilities at 31.12.2008 as compared to 31.12.2007 arose mainly due to the repayment of short-term borrowings and payment to creditors.

-	Completions of The Grange, Mera Springs and The Esta
-	Write down of development properties for sale amounted to US$180.2 million
-	Loss attributable to shareholders after write down of development properties for sale amounted to US$107.3 million

MCL Land Limited
Consolidated Statement of Changes in Equity for the financial year ended 31 December

		Share	Translation	Retained	Total
		capital	reserve	earnings	equity
		US$'000	US$'000	US$'000	US$'000
2008
Balance at 1 January		276,657	105,228	142,288	524,173

Net gain recognised directly in equity
	- translation difference	-	4,155	-	4,155

Loss for the financial year		-	-	(107,288)	(107,288)

Total recognised gain/(loss) for the financial year		-	4,155	(107,288)	(103,133)

Dividend (net) (Note 5)		-	-	(27,091)	(27,091)

Balance at 31 December		276,657	109,383	7,909	393,949

5	The net cash generated from operating activities for the financial year ended 31 December 2008 relates mainly to progress billing collected from the Group's development properties and repayment of advances from joint ventures, partially offset by the acquisitions of land at Yishun Avenue 1, Nim Park and Casa Nassau.
6	The net cash flows used in financing activities for the financial year ended 31 December 2008 relates to dividend paid on 27 May 2008 and higher long-term loans repaid from the progress billings collected.

1	Accounting policies and basis of preparation
	The financial statements contained in this announcement are based on the results for the financial year ended 31 December 2008 which have been prepared in conformity with International Financial Reporting Standards ('IFRS'), including International Accounting Standards ('IAS') and interpretations adopted by the International Accounting Standards Board.

	There have been no changes to the accounting policies set out in the 2007 audited accounts except for the adoption of the following interpretations to existing standards which are relevant to its operations:

	IFRIC 11	Group Treasury Share Transactions
	IFRIC 14	The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
	The adoption of the above interpretations did not have a material impact on the results of the Group.

2	Revenue and (Loss)/Profit
		Group

For the financial year ended 31 December		2008	2007	Change
		US$'000	US$'000	%
Revenue:
1st half		718	133,864	- 99
2nd half		342,338	257,251	33
		343,056	391,115	- 12

(Loss)/Profit after tax:
1st half		8,198	3,189	157
2nd half		(115,486)	58,702	n/m
		(107,288)	61,891	n/m

(Loss)/Profit before tax is determined after including:
Write down of development properties for sale (Note 3)		(180,245)	-	n/m
Fair value (losses)/gains for investment properties		(1,030)	1,238	n/m
Net exchange gain/(loss)		13	(125)	n/m
Rental income		1,303	1,502	- 13
Interest income		1,361	1,521	- 11
Depreciation on plant and equipment		(165)	(201)	- 18
(Loss)/Profit on disposal of plant and equipment		(2)	2	n/m

3	Other operating (expenses)/income
	Included in the operating (expenses)/income is a write down of the Group's development properties for sale amounting to US$180,245,000 (2007: Nil).
4	Tax
	The provision for income tax is based on the statutory tax rates prevailing in the respective countries in which the Group companies operate after taking into account expenses which are not tax deductible, income not subject to tax and the Group tax relief.
5	Dividend (net)
	At the Annual General Meeting to be held on 29 April 2009, a first and final dividend of S¢10.00 per share (amounting to approximately US$25.7 million) in respect of 2008 will be proposed. These financial statements do not reflect this dividend payable, which will be accounted for in shareholders' equity as an appropriation of retained earnings in the financial year ending 31 December 2009.

	The dividends paid in 2008 and 2007 were as follows:

					Group and Company
					2008	2007
					US$'000	US$'000

	One-tier dividend of S¢10.00 per share paid in 2008 (2007: S¢4.30 per share)				27,091	10,396
	Final dividend of S¢2.20 per share paid in 2007 less income tax of 18%				-	4,361
					27,091	14,757

6	(Loss)/Earnings per share*

			Group
	For the financial year ended 31 December			2008			2007

	Basic (loss)/earnings per share*
	(Loss)/Profit attributable to shareholders (US$'000)			(107,288)			61,891
	Weighted average number of ordinary shares in issue ('000)			369,986			369,986
	Basic (loss)/earnings per share (US¢)			(29.00)			16.73

	Underlying (loss)/earnings per share
	Underlying (loss)/profit attributable to shareholders (US$'000)			(106,433)			60,951
	Basic underlying (loss)/earnings per share (US¢)			(28.77)			16.47

	A reconciliation of the underlying (loss)/profit and (loss)/profit attributable to shareholders is as follows:

		Group
	For the financial year ended 31 December			2008			2007
				US$'000			US$'000

	(Loss)/Profit attributable to shareholders			(107,288)			61,891
	Fair value losses/(gains) of investment properties (net of deferred tax)			855			(940)
	Underlying (loss)/profit attributable to shareholders			(106,433)			60,951

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

8	Group Borrowings

			Group
			At	At
			31.12.2008	31.12.2007
			US$'000	US$'000

	Borrowings due within one year
		- unsecured	9,034	94,760
		- secured	5,837	-
			14,871	94,760

	Borrowings due after one year
		- unsecured	45,170	45,025
		- secured	253,072	182,838
			298,242	227,863

			313,113	322,623

9	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

	Twelve months ended 31 December 2008		-		-


	Three months ended 31 December 2008		-		-

10	Issue of shares There have been no changes in the issued share capital of the Company since 31 December 2007. There are no outstanding convertibles issued or treasury shares held by the Company as at 31 December 2008. The total number of issued share capital (excluding treasury shares) as at 31 December 2008 and 31 December 2007 was 369,985,977.
11	Closure of books NOTICE IS HEREBY GIVEN to the members of the Company that the Transfer Books and Register of Members of the Company will be closed on 13 May 2009 for preparation of dividend warrants. Duly completed and stamped transfers received by the Company's share registrars, M&C Services Private Limited at 138 Robinson Road, #17-00, The Corporate Office, Singapore 068906 before 5.00 pm on 12 May 2009 (the 'Books' Closure Date') will be registered to determine shareholders' entitlements to the final dividend. Shareholders (being depositors) whose securities' accounts with The Central Depository (Pte) Limited are credited with shares as at the Books' Closure Date will be entitled to the payment of the first and final dividend which will be paid on 26 May 2009, subject to approval by shareholders at the Annual General Meeting of the Company to be held on 29 April 2009.
12	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 31 December 2008 and the date of this report.
13	Notification pursuant to Rule 704(11) of the listing manual Pursuant to Rule 704(11) of the SGX-ST Listing manual, MCL Land Limited wishes to announce that no person occupying a managerial position in the Company or any of its principal subsidiaries is a relative of a director or the chief executive officer or a substantial shareholder of the Company.