A flag with the CK Hutchinson Holdings logo is seen outside their headquarters at Cheung Kong Center in the Central district of Hong Kong on Aug 3, 2017. (ISAAC LAWRENCE / AFP)
Cheung Kong Asset Holdings Ltd reported a 55 percent increase in net profit for the six months ended June 30, up to HK$12.9 billion ($1.6 billion), with the easing of COVID-19 measures and the recovery of the local economy, according to its interim report released on Thursday.
The report showed that the company’s revenue reached HK$35.7 billion, a 54 percent increase compared with HK$23.3 billion in the same period a year ago. It lifted its interim dividend to 43 HK cents per share from 41 HK cents in 2021.
In a statement, the company said that COVID risks persist and that the path to global economic recovery remains highly uncertain under the shadow of surging inflation and rising interest rates
The company, an affiliate of CK Hutchison Group, which is backed by Hong Kong tycoon Li Ka-shing, is a major property developer in Hong Kong. The report showed that its business in Hong Kong contributed 50 percent of its total profit, while 17 percent of its profit came from the Chinese mainland business.
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Its revenue from property sales increased to HK20.4 billion for the first sixth months of this year compared with HK$14.8 billion one year ago, accounting for a major part of its total revenue growth.
In a statement, the company said that COVID risks persist and that the path to global economic recovery remains highly uncertain under the shadow of surging inflation and rising interest rates, adding that despite a challenging business environment, the group has remained resilient and continued to source potential opportunities for growth and expansion to create long-term value for shareholders.
Victor Li Tzar-kuoi, chairman of CK Asset Holdings Limited, said that the Group had demonstrated resilience and financial discipline in the face of unprecedented challenges and a fast-changing environment.
“The Group’s portfolio is characterized by balance and breadth, and consists of geographically and sectoral diversified businesses and quality assets that provide multiple onshore and offshore income streams,” Li said in a statement.
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“As at June 30, 2022, the Group had a net cash position of HK$13.9 billion, after deducting bank and other borrowings,” he added.
On Thursday, CK Asset shares on the Hang Seng rose 0.37 percent to close at HK$54.30, while CK Hutchison Holdings increased 0.88 percent to close at HK$51.40.