Advertisement
Profits plunge at Li Ka-shing’s flagships Hutchison and CK Asset as they run aground after 12 full months of the coronavirus pandemic
- CK Hutchison’s net profit fell 27 per cent to HK$29.1 billion last year, while CK Asset’s underlying profit declined 32.5 per cent to HK$19.34 billion
- CK Asset unveils US$2.2 billion deal to acquire four European infrastructure assets from the tycoon’s Li Ka Shing Foundation and a share buy-back programme
Reading Time:3 minutes
Why you can trust SCMP
0
CK Hutchison Holdings and CK Asset Holdings, the listed flagships of billionaire Li Ka-shing, reported sharply lower annual profits as economic disruptions caused by the coronavirus pandemic took a toll on their retail, ports, hotel and property operations.
CK Hutchison, the conglomerate with businesses spanning from container ports, retailing to telecommunications and energy, said net profit fell 27 per cent to HK$29.1 billion (US$3.7 billion) for 2020. It was the first profit decline since its restructuring in 2015, as Europe, from where it derived 78 per cent of its operating profit last year, saw steep economic decline.
However, the profit was in line with the HK$29.4 billion consensus estimate by 10 analysts polled by Bloomberg.
Revenue declined 8 per cent to HK$403.8 billion, a second consecutive annual decline.
“[As] CK Hutchison’s cash flows are very good with a low debt leverage, we will certainly seek investment opportunities, especially businesses with stable cash flows,” Victor Li Tzar-kuoi, CK Hutchison’s chairman and the eldest son of Li Ka-shing, told reporters on Thursday.
Eric joined the Post in 1998 after brief stints in a trading company, and translation and editing roles at Dow Jones and Edinburgh Financial Publishing. He has over 20 years of experience covering China's energy, mining and industrial materials sectors, and has reported on China's healthcare and biotechnology sectors for three years. Currently, he leads the Post's coverage on climate change, energy transition and sustainability topics. Eric has a Masters of Business Administration degree.
He joined the Post in 2017 and has won numerous awards. These include Business Reporter of the Year and Best Property Market News Reporting at the 7th Business Journalism Awards of The Hang Seng University of Hong Kong, Excellence in Business Reporting at The Sopa 2020 Awards for Editorial Excellence as well as Merit Award at The 21st Consumer Rights Reporting Awards from the Consumer Council. He has a Master of Science degree in real estate from the University of Hong Kong and a bachelor’s degree in international journalism from Hong Kong Baptist University. He is a student member in the general practice division of The Hong Kong Institute of Surveyors.
Advertisement