CK Hutchison Holdings reports 31-fold surge in first-half profit

CK Hutchison Holdings, one of the flagship companies owned by Hong Kong billionaire Li Ka-shing’s family, reported a 3,046 per cent increase in its first-half profit amid a period the firm’s chairman called “turbulent and uncertain”. Meanwhile, profit at CK Asset Holdings, the group’s other flagship company that focuses on residential and commercial property, registered a 37.8 per cent jump in net profit during the same period. CK Hutchison, the port-to-telecoms conglomerate, said on Thursday that its profit attributable to shareholders for the six months ended June was HK$26.8 billion (US$3.4 billion), dwarfing the HK$852 million reported a year prior. The surge was driven primarily by HK$14.2 billion in one-time items. It recognised gains of HK$17.75 billion from the disposal of its interests in UK Rails and UK Power Networks. In addition, it also had a HK$2.2 billion non-cash write-off of the acquisition premium allocated to certain infrastructure assets. Underlying profit, excluding one-off items and the earnings impact from the disposal of UK telecoms assets, rose 7 per cent to HK$12.58 billion. Revenue was HK$255.4 billion, up from HK$240.7 billion a year ago. “The global environment in the first half of 2026 was exceptionally turbulent and uncertain,” said chairman Victor Li Tzar-kuoi in the earnings statement. “The group will also maintain its disciplined capital allocation to support its strong financial and liquidity profile”, he said, adding the operating environment for the rest of 2026 is expected to remain challenging. In May, the company announced it would sell its remaining 49 per cent interest in UK telecoms provider VodafoneThree for £4.3 billion (US$5.8 billion). The transaction was completed on July 30, with the gain on disposal of around HK$5.9 billion and cash consideration to be recognised in the second half of the year. An interim dividend of 74.55 HK cents per share was announced, up from 71 HK cents a year earlier. Meanwhile, CK Asset, the commercial and residential developer, said its unaudited profit attributable to shareholders rose by about 38 per cent to HK$8.68 billion, while underlying profit climbed by about 5 per cent to HK$6.64 billion. The developer and commercial landlord declared an interim dividend of 41 HK cents per share to be paid on September 24. The group noted that the residential property market in Hong Kong “continued to stabilise during the first half of 2026” as low mortgage interest rates and the improving market sentiment boosted transaction volumes and prices. Meanwhile, its office leasing segment also saw improvement with activity at its Cheung Kong Center II increasing during the period. For the rest of the year, Li said, the group would take note of “regional conflicts and inflationary pressures” that would continue to affect trade, adding economic growth was likely to moderate.