Chairman of CK Asset Holdings Victor Li Tzar-kuoi is seen during an online press conference on the annual results 2019 in Central, Hong Kong, March 19, 2020.
(PROVIDED TO CHINA DAILY)
Share prices
of four associated companies of the business empire of Hong Kong tycoon Li
Ka-shing tumbled on Thursday, after all companies reported uncertain earnings
prospects due to continuing global trade tensions, Brexit and social unrest in
Hong Kong.
The outbreak and rapid spreading of COVID-19 across continents and a fall in crude oil prices as a result of the recent price war have created unprecedented risks and challenges for the global economy
Victor Li Tzar-kuoi，CK Hutchison Chairman
CK Hutchisonplunged 8.7 percent to HK$45.5 per share, while CK Asset Holdings fell 7.4 percent to HK$34.4.
CK Hutchison, a port-to-telecom conglomerate, registered a 2 percent increase in profit attributable to shareholders to HK$39.83 billion ($5.1 billion). Shareholders will receive a final dividend of HK$2.3 per share, translating into a total dividend of HK$3.17 per share.
“The
outbreak and rapid spreading of COVID-19 across continents and a fall in crude
oil prices as a result of the recent price war have created unprecedented risks
and challenges for the global economy,'' CK Hutchison Chairman Victor Li Tzar-kuoi
said.
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"The
trading environment in the Chinese mainland as well as the majority of other
countries will become very challenging, severely impacting various businesses
and industries. Together with Brexit uncertainties, social unrest in different countries,
geopolitical and trade tensions, all will continue to weigh heavily on the
global economy,” Li said in a company filing to the Hong Kong Stock Exchange on
Thursday.
“On a positive note, the group’s telecommunication businesses are expected to be less affected amongst core segments, and barring any unforeseen circumstances, the outlook for this business will remain positive. The company will continue to focus and rely on its key strengths of resilience, business and geographical diversity and strong financial fundamentals to deliver a solid and stable performance in 2020,” Li added.
The reported
earnings of property flagship CK Asset plunged 27.4 percent to HK$29.13 billion
as Hong Kong in particular was confronted by unprecedented challenges, and some
of the company businesses were affected by various disruptions in the second
half of the year. Shareholders are entitled to receive a final dividend of
HK$1.58 per share, translating into a total of HK$2.1 per share.
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On
Wednesday, the infrastructure business arm of the conglomerate also reported
weak profit results that sent share prices tumbling on Thursday.
CK
Infrastructure Holdings shed 12.6 percent to HK$38.85 apiece after the company
reported a meagre 1 percent increase in profit attributable to shareholders of
HK$10.5 billion as foreign exchange fluctuations, continuing global trade
tensions, Brexit, social unrest in Hong Kong and bushfires in Australia
affected the company results.
Its utility company, Power Assets Group, also dropped 9.5 percent to HK$45.7 a share as its profit attributable to shareholders decreased 6.6 percent to HK$7.13 billion, primarily attributable to weak exchange rates for various currencies and lower contributions from the group’s United Kingdom and Hong Kong portfolios.
