Jardine Strategic recorded a profit for 2000, excluding non-recurring items, of US$102 million, a decrease of 27% from 1999. An improved contribution from Jardine Matheson was offset by the losses recorded in Dairy Farm and a smaller contribution from Hongkong Land resulting from the closing phase of its negative rental reversion cycle.

The overall result benefited from the exceptional profit arising on the disposal of the Group's holdings in Robert Fleming, partially offset by the company's US$74 million share of the charge made by Dairy Farm against the asset values of its Australian supermarket chain. After non-recurring items, a profit of US$535 million, or US¢63.94 per share, was recorded, compared with US$157 million, or US¢17.52 per share, in 1999.

Excluding non-recurring items, earnings per share declined 22% to US¢12.21. Net asset value per share, based on the market price of the company's holdings, recorded an increase of 27% to US$5.07 in 2000.

Jardine Strategic's earnings and net asset value per share were enhanced in 2000 by a share repurchase programme, under which the company bought back 8% of its stock. The company's attributable interests in its core investments were also increased, and at the year end it held 50% of Jardine Matheson, 62% of Mandarin Oriental, 60% of Dairy Farm, 37% of Hongkong Land and 26% of Cycle & Carriage.

In line with the Group's strategy of increased focus, the decision was taken prior to the year end that the shareholdings in Connaught Investors, held 45% by Jardine Strategic, 45% by Hongkong Land and 10% by Jardine Matheson, should be re-organised. Connaught Investors' stake in Nelfi was distributed pro rata to the shareholders, and its Jardine Matheson shares were repurchased by the Company at market price. Jardine Strategic then acquired the interests of its fellow shareholders in Connaught Investors for the market value of the underlying investments, paying US$208 million to Hongkong Land and US$46 million to Jardine Matheson.

The trading environment for Edaran Otomobil Nasional, in which the Group holds 19%, continued to improve, benefiting both its motor and financial services businesses. Tata Industries, in which the Group has a 20% interest, is the principal investment vehicle of the Tata Group for new ventures in India. Tata Industries' investments are mainly in the areas of telecommunications, property, financial services and auto-components.