Li Family’s CK Hutchison And CK Asset Report Rising Profits
The flagship companies controlled by Hong Kong’s second-wealthiest family reported first-half earnings on Thursday that were in line with expectations.
CK Hutchison said its net profit rose 2% increase to HK$18.3 billion ($2.3 billion), while CK Asset reported that its core profit, excluding investment property revaluation and disposal, rose by 16.4% to HK$14.05 billion.
Chairman Victor Li said currency and commodity price volatility since the second half of 2018 had dampened the CK Hutchison’s profitability during the first half of the year.
CK Hutchison’s operations range from ports to infrastructure, energy, telecommunications and retail. It was founded by Victor’s father, Li Ka-shing, who retired after the annual general meeting in May last year, passing the mantle to his eldest son.
Total revenue for CK Hutchison for the period was down 3.3% to HK$217 billion, most of which comes from its operations outside of Hong Kong. European markets contributed 48% of the conglomerate’s overall sales, followed by Asia at 15% and Canada with 11%.
Property developer CK Asset said its revenue jumped 41% to HK$34 billion, although its net profit slumped 38.9% to HK$15.1 billion.
Hong Kong’s No. 2 property developer by market value said its financial position remains strong because it has ample cash on hand and a debt ratio of 0.5%. CK Asset said it has a pipeline of property projects under planning and development, and is anticipated to generate profit contribution in the years to come.