CK Hutchison H1 net profit drops 41%, CK Asset down 19%

CK HUTCHISON Holdings, the ports-to-telecoms conglomerate owned by billionaire Li Ka-shing, posted a 41 per cent drop in net profit in the first six months, hurt by a strong US dollar and input cost inflation.

The Hong Kong-based group said in a filing that net profit in the first half declined to HK$11.2 billion (S$1.9 billion) on a post-IFRS 16 basis. If a 2022 one-time net gain was excluded, the underlying profit dropped 13 per cent from a year ago.

“The group’s full year outlook remains resilient from an operational perspective (due to) its business and geographical diversification,” chairman Victor Li said in a statement.

The group also owns energy and retail businesses in Europe and other parts of the world.

Victor Li noted that consumer and business confidence might continue to soften as higher interest rates and more constrained credit environments weigh on sentiment, while energy and commodity prices remain volatile and the risk of supply side-driven spikes persist.

Sister company CK Asset, a major property developer in Hong Kong which also has interests in infrastructure and utility assets overseas, said net profit during the period dropped 19 per cent to HK$10.3 billion, due to the discontinuation of an aircraft leasing operation in 2022 and a drop in property developments. REUTERS