CK Hutchison Profit Jumps Sharply on Boost From Asset Sales

(Bloomberg) — CK Hutchison Holdings Ltd.’s profit rose sharply in the first half of the year, driven by hefty gains from recent asset disposals by the Hong Kong conglomerate.

The company, founded by billionaire Li Ka-shing, reported HK$26.8 billion ($3.4 billion) in net income for the six months ended June, a huge jump from the HK$852 million recoreded in the year—ago period. Revenue came in at HK$255.4 billion, compared with HK$240.7 billion a year earlier. It announced an interim dividend of HK$0.75 per share, compared with HK$0.71 a year before.

CK Hutchison is undergoing a major transformation, with the Li family seeking to sell long-held assets to to build a war chest of at least $41 billion. The shift mirrors a broader trend among Hong Kong’s traditional family-owned conglomerates, which are increasingly prioritizing capital allocation and shareholder returns. It could also set the stage for transitioning into a new generation of leaders within the group.

A welcome email is on its way. If you don't see it, please check your junk folder.

The Li family’s cash-out plan has boosted liquidity, reducing net debt by 44% to HK$63.7 billion from the end of 2025. Cash and equivalents rose 25% to HK$179 billion.

The company reported a 7% increase in underlying profit at HK$12.6 billion.

Still, the group will remain focused on cost management and maintain a disciplined capital allocation approach in the face of challenges including the Iran war, inflation pressure and weaker outlook for the global economy, Chairman Victor Li said in a statement.

CK Hutchison has completed a $5.8 billion sale of its stake in the UK’s largest mobile operator to Vodafone Group Plc, and continues to explore sale or spin-offs of telecom assets in Italy, Sweden, Denmark and Australia.

The group is also mulling an initial public offering of its retail arm A.S. Watson Group, which could raise at least $2 billion. It’s in talks to sell the majority of its global ports for at least $19 billion in cash, although the deal has dragged on having gotten entangled in US-China rivalry, especially in Latin America, where two terminals near the strategic Panama Canal have become a geopolitical flashpoint.

CK Hutchison, now led by Li’s son Victor, also benefited from its roughly 17% stake in Canadian oil company Cenovus Energy Inc., which saw output surge as the Iran war disrupted global energy supply and boosted demand for alternatives outside of the Middle East. The group also saw strength in its key businesses including health-and-beauty retail, supported by resilient demand across major European and Asian markets.

The Li family’s property arm CK Asset Holdings Ltd. reported a 38% increase in net income during the first half to HK$8.7 billion, driven primarily by the disposal of its UK joint ventures.

Hong Kong, the company’s primary property market, is seeing a broader recovery in its prime office sector after years of sluggish demand and elevated vacancies.