ASSETS The Group had a robust and well-capitalised balance sheet with US$2.0 billion in cash and bank balances. As of 30 June 2022, the Group had cash and bank balances that were denominated in foreign currencies. The cash and bank balances are primarily denominated in USD, HKD, SGD, RMB, JPY and AUD. Total assets increased from US$9.3 billion as of 31 December 2021 to US$16.4 billion as of 30 June 2022. The increase in total assets was mainly driven by the acquisition of ARA in January 2022. Investment properties decreased by 14.5% to US$3.2 billion as of 30 June 2022 (31 December 2021: US$3.7 billion). The decrease was mainly due to reclassification of the Group’s portfolio of logistics and warehousing facilities in China to be disposed of to a new China Income Venture as disclosed in the announcement made on 3 July 2022. Investment in joint ventures and associates increased by 101.0% to US$2.7 billion as of 30 June 2022 (31 December 2021: US$1.3 billion). The increase is mainly contributed by the Group’s acquisition of the investments in joint ventures and associates held by ARA. Increase in goodwill from US$0.5 billion as of 31 December 2021 to US$3.4 billion as of 30 June 2022 is mainly attributed to the goodwill arising from the acquisition of ARA. Financial assets at fair value through other comprehensive income (“FVOCI”) increased by 28.7% to US$1.0 billion (31 December 2021: US$0.8 billion). The increase is mainly from ARA’s investments in FVOCI, offset by the disposal of shares in China Logistics Property Holdings Co., Ltd. in May 2022. LIABILITIES Total bank and other borrowings as of 30 June 2022 were US$4.9 billion compared to US$4.2 billion as of 31 December 2021. With cash and bank balance of US$2.0 billion, the net debt to total assets as at 30 June 2022 were 17.9% (31 December 2021: 27.9%). During the period, the Group continued to expand and diversify its funding and capital structure with additional major borrowings below to support the Group’s investments and ongoing development: • In November 2021, the Group closed its first SLL of US$700 million which was subsequently upsized to US$1 billion at Libor plus 2.25% and Libor plus 2.75% for three-year and five-year tranches respectively. • In January 2022, the Group closed a JPY28 billion SLL which was upsized to JPY32.5 billion at Tibor plus 1.8% for a five-year tranche. • In May 2022, the Group closed a five-year S$300 million SLL at SORA plus 1.65%. E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 15
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