Good morning, everyone. Welcome to the Jardine Matheson and Jardine Strategic 2018 half-year results presentation. Jardine Matheson produced a good performance in the first half of the year. Benign trading conditions in many of the group's key markets led to higher contributions from most group companies. In particular, there were good performances from Astra and Jardine Cycle & Carriage. The group's financial position remains robust. I'll now give you an overview of the group's results for the first half of the year in more detail, and there will be time at the end for questions which you may have. This slide sets out the structure of the Jardine Matheson group with which most of you will be familiar. In addition to the ownership interest shown, Jardine Strategic holds a 58% interest in its parent, Jardine Matheson.
There has been no material change in any of these ownership interests since our 2017 full-year results presentation. As always, my focus will be on the underlying profit attributable to shareholders, which the group uses as its key earnings performance measure. Underlying profit excludes what we call non-trading items, which are specifically defined by an accounting policy in our accounts. By focusing on underlying profit, the intention is to provide a clearer understanding of the ongoing performance of the group. Overall, for the first half of 2018, the group's revenue, including 100% of associates and joint ventures, rose 19% to HKD 44.3 billion. Consolidated revenue for the group was up 14% at HKD 21.3 billion. The group's underlying profit in the period was HKD 792 million, 6% higher than the first six months in 2017.
Net non-trading gains in the first half totaled HKD 136 million, with the main item arising from revaluations of investment properties. This compared with a net non-trading gain of HKD 1.4 billion in the first half of 2017. Underlying earnings per share were 7% higher at HKD 2.11. The board has increased the interim dividend by 5% to HKD 0.42 per share. Turning to the contribution of individual businesses to Jardine Matheson's profit, Jardine Pacific's businesses saw mixed performances, which led to a slightly lower result overall for its portfolio. Jardine Motors made a good start to the year in Hong Kong, but its margins in mainland China and the U.K. came under pressure. JLT delivered a solid performance in the context of continuing unpredictability in global insurance markets. Hong Kong Land's results were down slightly, with a higher contribution from its investment properties, offset by lower profits from its development properties.
Dairy Farm's profit rose marginally from the prior year despite mixed trading conditions. Mandarin Oriental delivered a good result for the period due to generally improved performances across most of the portfolio. Jardine Cycle & Carriage delivered improved results in the first half, buoyed further by Astra's increased contribution with strong performances from its heavy equipment and mining businesses in particular. Moving to non-trading items during the period, the major component was an upward revaluation of Hong Kong Land's investment properties of HKD 280 million, primarily attributable to the central portfolio here in Hong Kong. This was partially offset by a net non-trading loss of HKD 157 million, principally in Jardine Cycle & Carriage due to unrealized fair value losses related to non-current investments. Overall, the group saw net non-trading gains of HKD 136 million in the first half.
I'll now turn to the individual operating businesses before returning to the net debt position, summary of business developments, and outlook for the remainder of the year. I'll deal with the non-listed Jardine Pacific and Jardine Motors before moving on to the group's listed entities, all of which have recently issued their own individual results announcements. Starting with the businesses held directly by Jardine Matheson, Jardine Pacific's operations produced mixed performances. Its underlying profit was HKD 63 million, a 6% decrease compared with 2017. Looking at individual businesses, Jardine Schindler continues to be the biggest contributor to Jardine Pacific. Its profits were flat, but its recurring maintenance portfolio continues to grow. JEC produced a stable contribution, with its Hong Kong operations performing well. It was a similar story at Gammon, where earnings were broadly in line with last year.
The order books for both of the engineering and construction businesses look strong going into the second half of the year. Jardine Restaurants saw lower results from Taiwan and Vietnam, and a stable performance from Hong Kong. Earnings from transport services were down slightly due to the loss of a major customer at Hactl, although generally, cargo throughput was in line with the market. Let me move to our motors businesses. Jardine Motors continued to show growth with its underlying profit, up 6% to HKD 87 million for the period, including a contribution from Zhongsheng. Zhengfu in Hong Kong reported steady profit growth, and there were increased sales of new cars. They recently moved into an impressive new headquarters in Taiwan, which houses the largest car showroom in Hong Kong. In mainland China, meanwhile, profits were lower as a result of reduced margins on new cars.
JLT delivered a solid performance against a backdrop of continuing global economic uncertainty and unpredictability in the insurance markets. Total revenue increased by 3% to GBP 713 million, representing 4% organic revenue growth. JLT's reported underlying profit increased by 11% compared to the first half of 2017. In the period, JLT commenced a global transformation program to deliver operational efficiencies and cost savings. Adjusting for costs associated with the program and after conversion into US dollars, JLT's contribution to the group's underlying profit was 2% lower than 2017. This completes my review of the businesses held directly by Jardine Matheson. Now turning to Jardine Strategic, one of the group's core holding companies. Consolidated underlying profit in the first half of the year increased by 9% to HKD 828 million.
The non-trading items, totaling HKD 156 million, reflects primarily the upward revaluation of Hong Kong Land's investment properties, partly offset by the group's share of the unrealized fair value loss on non-current investments. The board has approved an interim dividend of HKD 0.10 per share, an increase of 5% from last year. As of 30th of June, the net asset value per share of Jardine Strategic, which is calculated by reference to the market value of its underlying investments, was HKD 64.62, up 9% from the end of 2017. I'll now turn to the principal businesses of Jardine Strategic. Hong Kong Land's investment properties produced a strong set of results due to positive rental reversions in Hong Kong. Results from development properties, however, were behind the first six months of 2017 due to the timing of sales completions of properties on the mainland.
Overall, Hong Kong Land's HKD 455 million of underlying profit was 3% lower than 2017. Its 1% increase in total equity to some HKD 37.3 billion reflects the revaluation of its investment properties, principally in Hong Kong, net of currency movements. Its central portfolio benefited from higher average office rents, with vacancy now at 1.9% compared to 1.4% at the end of 2017. The retail portfolio remains almost fully occupied. In Singapore, Hong Kong Land's office portfolio remained effectively fully occupied. Average office rents, however, decreased slightly due to mildly negative rental reversions. Turning to Hong Kong Land's residential and mixed-use development properties. Staying with Singapore, results were driven primarily by the completion of the 1,327 acres executive condominium project and sales to date of the ongoing 710-unit La Grande project. This is on schedule for completion in 2019.
However, the profit contribution from development properties was held back by fewer sales completions in mainland China in the first six months. At 30th of June, the group had HKD 1.5 billion in sold but unrecognized contracted sales compared with HKD 1 billion at the end of 2017. Dairy Farm saw increased sales for the first half of this year. Underlying profit was 2% higher at HKD 215 million. Very strong results from North Asia Health and Beauty were offset by lower sales and profit contribution from the Southeast Asian food businesses. In North Asia, the food businesses saw solid sales growth, but profits were down mainly due to increased rent and labor costs in Hong Kong. The health and beauty businesses in Hong Kong and Macau delivered outstanding sales and profit growth driven by a significant increase in business from a higher number of mainland Chinese tourists.
19.99% Yong Wei reported strong growth in sales, but total profits were behind last year due to their investments in new technology formats and a new share incentive scheme. In Southeast Asia, a challenging trading environment led to continuing decline in the food businesses in Indonesia, Malaysia, and Singapore. Underinvestment in infrastructure, range, and competitive pricing in the past will take some time to correct. Improved performances in the health and beauty businesses in this region, however, were encouraging and produced solid results. In home furnishings, IKEA continued to perform well with strong sales from Indonesia and Taiwan. In Hong Kong, the opening of a new store drove sales higher but also increased operating costs, resulting in reduced profits. At restaurants, the profit contribution from Maxim's increased as it continues to successfully expand its product offering and increase its presence in Greater China and Southeast Asia.
Dairy Farm continues to face challenges on several fronts, including increasing competitive pressures and a number of underperforming businesses. A strategic review concluded earlier this year has resulted in improvement programs as well as a new management structure that is more centralized, with two main trading divisions in North and Southeast Asia. A strengthened leadership team has been formed to drive forward the key strategic priorities of the business, although time will be needed to deliver sustainable improvement. Moving now to the group's luxury hotel business. Mandarin Oriental saw underlying profit at HKD 22 million for the period compared with HKD 15 million in 2017. This was due to generally improved performances across the portfolio, notably Hong Kong, Bangkok, Singapore, and Tokyo. Paris also showed signs of growth after several years of weak demand.
The impact of the fire at the London hotel is still being assessed by insurers, but given the coverage under the group's insurance arrangements, the impact on the group's profitability is expected to be modest. Repair work has started, and we expect the hotel to partially reopen before the end of this year. Turning to the group's other business interests in Southeast Asia. Jardine Cycle & Carriage's overall result was higher due to a strong performance from a number of its businesses, including Astra. In total, underlying profit was HKD 414 million for the period, up 10% from 2017. Before moving to Astra, let me cover JC&C's directly held motor and other interests. In its direct motor interests, the Singapore motor operations saw improvements in its earnings, as did 46% owned Tunas Ridean in Indonesia and 25% owned Truong Hai Auto Corporation in Vietnam.
The contribution from Jardine Cycle & Carriage's other interests also rose in the period. This included dividend income from Vinamilk in Vietnam, arising from the 11% stake which Jardine Cycle & Carriage began acquiring in November last year. The increased contribution from other interests also reflected higher profits at Siam City Cement and REE in Vietnam. Turning now to Astra. A good recovery in several of its business divisions led to a strong result overall for the first half of 2018. Astra's total net profit was HKD 750 million under Indonesian accounting standards, an increase of 11% in local currency terms. This translated to an underlying contribution to Jardine Cycle & Carriage of HKD 354 million, up 12%. Looking now at the contribution from each of Astra's operating divisions. Astra's automotive division saw profits remain broadly in line with last year. There was good growth in the overall motorcycle market, with volumes up 11%.
Astra's sales matched this rate of growth, and its market share was maintained at 74%. This was offset, however, by a decline in market share in the four-wheel market from 56% to 48% due to increased competition, with new players such as Mitsubishi Xpander and Wuling Confero having entered the low MPV mass market segment. This was despite growth of 4% in the market overall to 554,000 units. During the period, the group launched 12 new models and 4 revamped models. At Astra's financial services division, the results of the consumer finance businesses improved against last year due to a lower level of loan provisioning. Astra's general insurance company saw its net income fall by 2%, principally due to lower investment income. Astra Viva Life continued to grow its customer base.
44.6% owned Permata Bank's earnings were lower than the previous year, but it had benefited in the first half of 2017 from a one-off gain from the sale of a portfolio of its non-performing loans. The contribution from the group's heavy equipment and mining business grew by 54% in the period. United Tractors' construction machinery business, Komatsu, reported a 37% increase in heavy equipment sales. In its mining subsidiaries, higher volumes combined with rising coal prices resulted in reported coal sales 22% higher than the prior year. Turning to the agribusiness, the contribution from Astra Agro Lestari declined 28% due to lower crude palm oil prices. The contribution from infrastructure and logistics was modest. While income from existing toll roads rose, this was offset by initial losses arising on the opening of new toll roads. Astra continues to develop its toll road interests, which now extend to some 353 km.
Now moving from the operating company's trading performance to the group's overall net debt position. At 30th of June 2018, the group's net debt, excluding financial services, was HKD 5 billion, and gearing was 9%. Net debt has increased by HKD 1.6 billion since the end of 2017, reflecting the expansion in the number of the group's businesses. In Hong Kong Land, net debt increased by some HKD 500 million after taking into account land payments for several new projects, including Unisvilla in Singapore, a residential project, and the embassy site in Bangkok. Jardine Cycle & Carriage's consolidated net debt increased by some HKD 1 billion, following a strategic HKD 200 million investment in Toyota Motor Corporation shares and HKD 700 million higher net debt in Astra. Within Astra, the increase in net debt reflects the acquisition of a 45% stake in the Chikkapho Palimanan Toll Road in West Java.
It also reflects a HKD 150 million investment in Gojek and working capital movements in the heavy equipment and mining businesses. The net debt of financial services decreased slightly to HKD 3.3 billion. Overall, the group remains in a strong financial position with significant capacity to finance future growth. Let me now touch on some of the developments within the group during the first half of the year. Hong Kong Land secured several new sites for development, notably a 235,000 sq m commercial site in the heart of Nanjing, which it will develop in joint venture. It was successful in a conditional joint tender for the en bloc acquisition of a 670-apartment residential project at Tulip Gardens in Singapore. In addition, Hong Kong Land announced new primarily residential developments in Bangkok, Jakarta, and Manila. Mandarin Oriental has a strong pipeline of luxury hotels and residences under development.
Its new hotels in Beijing, Doha, and Dubai, as well as the residences at Mandarin Oriental in Bangkok, are expected to open in the next 12 months. In addition to the two new management contracts mentioned at the 2017 full-year results presentation, three more were signed in the first six months of this year. New hotels in Grand Cayman, Ho Chi Minh City, and Muscat in Oman will all open between now and 2021. Meanwhile, Mandarin Oriental continues to consider its strategic options for the Excelsior in Hong Kong. In March, Dairy Farm announced that it had agreed to partner with Robinsons Retail Holdings, the third largest retailer in the Philippines, by exchanging its Rustan's business for an interest in Robinsons. The combination will create a new platform for growth.
The transaction is expected to be completed in the fourth quarter, subject to regulatory approvals, following which Dairy Farm will own some 18.25% of Robinsons. Elsewhere at Dairy Farm, a series of programs are underway to address their strategic priorities of building capability, protecting the Hong Kong business, revitalizing their Southeast Asian businesses, growing presence in China, and driving digital innovation. At the center, we are focused more than ever on the opportunities and challenges that changing technology and digitalization are presenting to us. Two years ago, we set up our Innovate Jardines initiative to act as a catalyst for innovation, to challenge and support our business's approach to innovation generally, and to provide seed capital for projects that experiment with new technologies. A number of projects have taken hold. For example, United Tractors have built and installed predictive maintenance for mining equipment for customers, which has effectively reduced downtime.
In Singapore, Dairy Farm has successfully developed a robotic process automation RPA capability. Trials so far have resulted in a 90% reduction in time to complete repetitive finance and accounting tasks. Assurancy Astra has built a chatbot to give customers immediate responses to common health insurance inquiries. Trials have shown an increase in agent productivity of more than 50%. These are just some of the examples of the many projects in progress across the group. While we have some way to go on our journey, a culture of innovation is taking hold in our businesses, and we are making progress in identifying ways to deliver better experiences to our increasingly well-informed, digitally connected customers. Looking ahead, we are optimistic for the second half of 2018 and expect to see profit growth continue.
In mainland China, the completion of sales in Hong Kong Land's development business will be higher in the second half of the year. We also expect to see continued good performances from our businesses in Southeast Asia, Jardine Cycle & Carriage, and Astra. Overall, our key focus areas for growth remain Greater China and Southeast Asia, where we are very positive about the long-term prospects for our businesses. With that, I have come to the end of the presentation, and I'd be happy to take any questions you may have.