Li Ka-shing: CKH Holdings (00001) can expect profit growth in its port business for the whole year, while Cheung Kong (01113) Hong Kong property market is still dominated by policy interest rates.

Recently, CKH HOLDINGS (00001) and CK ASSET (01113) released their interim performance reports. In terms of CKH HOLDINGS performance, the total income for the first half of the year was 240.663 billion Hong Kong dollars, an increase of 3.45% compared to the same period last year. The group's port sector showed strong growth, the retail sector improved, and the infrastructure sector made a positive contribution. Li Ka-shing stated that despite uncertainties in the trade dispute and geopolitical risks, the port sector is expected to see moderate growth in freight volume in Asia, additional volume from new facilities in Egypt, and improved cost benefits, leading to substantial annual profit growth for the sector. Specifically, CKH HOLDINGS had a total income of 240.663 billion Hong Kong dollars for the first half of the year, a 3.45% increase year-on-year; the attributable profit to ordinary shareholders was 852 million Hong Kong dollars, a decrease of 91.65% year-on-year; the basic attributable profit to ordinary shareholders was 11.321 billion Hong Kong dollars, an increase of 10.94% year-on-year. In the performance report for CKH HOLDINGS, Li Ka-shing mentioned that the group's port sector showed strong growth, the retail sector improved, and the infrastructure sector made a positive contribution. The telecommunications CKHGT business also performed well, but the decrease in commodity prices and reduced contribution from Cenovus Energy due to extensive maintenance and repair activities had a negative impact on the growth. He also anticipated that the retail sector's businesses in Europe and most of Asia are expected to continue performing well, but the health and beauty product businesses in China will face challenges in the second half of the year. Regarding the progress of the sale of port assets, CKH HOLDINGS joint Managing Director and Group Finance Director Lui Fook Lam stated that the transaction to sell ports outside of Mainland China and Hong Kong is taking longer than expected when it was announced in March. With the exclusive negotiation period ending on July 27, the transaction has entered a new stage, and CKH HOLDINGS is inviting major Chinese strategic investors to join the discussion. Lui Fook Lam mentioned that due to the scale and complexity of the port transaction, obtaining approval from various regulatory agencies will take time. Even if a binding agreement is reached within this year, it may be difficult to complete the transaction by the end of the year due to its complexity, possibly requiring completion next year or later. In terms of CK Asset's performance, the group's property sales revenue increased by 58.9% to 7.366 billion Hong Kong dollars year-on-year in the first half of the year, but sales profit decreased by 2.9% to 1.768 billion Hong Kong dollars. This was mainly due to the weak market conditions, which led the group to offer multiple discount promotions to boost sales for various projects, resulting in lower profit margins during the period. CK Asset's pre-revaluation profit increased by 1.2% to 6.805 billion Hong Kong dollars in the first half of the year, with net profit decreasing by 26.7% to 6.302 billion Hong Kong dollars year-on-year; the interim dividend was maintained at 0.39 Hong Kong dollars. In Hong Kong, property sales income increased by 7.8% to 2.803 billion Hong Kong dollars, but sales profit decreased significantly by 92.9% to 74 million Hong Kong dollars. CK Asset expects to launch pre-sales for the residential project, Tide Cove in 2025. As of the end of June, contracted but unconfirmed property sales amounted to 28.553 billion Hong Kong dollars. In terms of property leasing, the retail and commercial property leasing industry in Hong Kong remained weak. The income and profit from leasing activities in the first half of the year within the group showed a slight decrease compared to the same period in 2024. Rental income from Hong Kong properties decreased by 3.9% to 1.745 billion Hong Kong dollars in the first half of the year. Li Ka-shing noted that the Hong Kong government has implemented various measures to support the real estate market and stimulate investment sentiment, and the residential property market in Hong Kong will continue to be influenced by housing and land policies as well as interest rate trends. As for the hotel business, CK Asset mentioned that there was an increase in visitors and staying guests in Hong Kong, but the industry still faced cost pressures. The average room rent for hotels was reduced. In the period, revenue from hotel and serviced suite operations within the group increased by 2.9% to 2.192 billion Hong Kong dollars, but related profits decreased by 3.5% to 794 million Hong Kong dollars. In the British pub business, the industry continued to face operational and cost challenges due to weak consumer confidence and high labor costs. Profit from the first half of the year increased by 5.4% to 629 million Hong Kong dollars. Li Ka-shing also mentioned that as of the end of June, CK Asset's total bank and other borrowings amounted to 54.4 billion Hong Kong dollars, with bank balances and time deposits totaling 33 billion Hong Kong dollars, resulting in a net debt-to-total capital ratio of approximately 5%.