Jardine Cycle & Carriage Ltd (JC&C) reported a 2% year-on-year decline in net profit to US$363 million for the six months ended Jun 30, as weaker contributions from its Indonesian businesses and lower dividend income offset gains in Vietnam.

JC&C’s revenue slipped 8% YoY to US$9.99 billion. Underlying earnings per share fell 11% to US¢120, while reported EPS eased 2% to US¢92. The board declared an unchanged interim cash dividend of US¢28 per share, payable on Oct 5. It also proposed a special payout of about US¢73 per share, split between a US¢37 cash distribution—funded by April’s sale of Toyota Motor Corp (TMC) shares—and an in-specie distribution of the group’s remaining 7.23 million TMC shares. Shareholders will vote on the special dividend at an upcoming EGM.

Segmentally, Indonesia remained the largest earnings driver, contributing US$428 million to underlying profit, down 8% YoY. Within this, Astra’s mining solutions and heavy equipment arm saw profit plunge 45% to US$80 million after lower gold and coal sales, while its automotive and financial-services units posted mid-single-digit growth. Vietnam delivered US$43 million, up 21% as THACO’s real-estate rebound and REE’s stronger utilities income outweighed reduced Vinamilk dividends. Regional Interests generated US$16 million, 24% below the prior year, reflecting softer car sales at Cycle & Carriage and stable earnings from TMC.

Group net debt, excluding Astra’s financial-services subsidiaries, widened to US$559 million from US$44 million at end-2025, though JC&C’s own net debt was trimmed to US$286 million after realising US$334 million from disposals of Vinamilk and TMC shares.

The company reiterated that Indonesia may face continuing macroeconomic headwinds in the second half, but maintained confidence in Astra’s long-term fundamentals. In contrast, management remains upbeat on Vietnam, citing “sustained growth” at THACO and REE.

Management said JC&C’s recent strategic review confirmed that most value creation occurs within its core investee companies. In line with a “more disciplined approach to capital allocation”, the board will seek shareholder approval to rename the holding company “Jardine Matheson Southeast Asia Ltd” and will keep reviewing the portfolio to recycle capital and reduce leverage.

Chief executive Freddy Lee said the first-half earnings decline mainly reflected lower business contributions from Indonesia, softer dividend income and the absence of last year’s foreign-exchange gains. He added that the proposed special dividend underscores JC&C’s intent to return capital efficiently while continuing to support portfolio companies and evaluate further divestments to sharpen focus and improve returns.