Net profits at Hong Kong-based conglomerate CK Hutchison Holdings fell 27 percent in 2024 from a year earlier, while investors are keeping a close eye on the controversial sale of its ports to a United States consortium.
According to its annual results released on Thursday, CK Hutchison Holdings saw its operating revenue rise 3 percent on a yearly basis to HK$476.68 billion ($61.34 billion) in 2024. Net profit dropped 27 percent year-on-year to HK$17.09 billion.
The company generated HK$45.28 billion from ports and related services last year, up 11 percent from a year earlier.
READ MORE: CE: CK Hutchison’s Panama ports deal should comply with the law
Owned by Hong Kong billionaire Li Ka-shing, the company comprises four core businesses, namely ports and related services, retail, infrastructure and telecommunications.
The conglomerate came under the spotlight earlier this month after it announced the decision to sell its stakes in the Panama Canal ports to a US consortium led by BlackRock.
The $22.8 billion deal would give BlackRock control of the two ports in the canal and 41 others across 23 countries.
The controversial sale has ignited widespread attention. In a news conference on Tuesday, Foreign Ministry Spokesperson Mao Ning said, “China firmly opposes moves that infringe on and undermine other countries’ legitimate rights and interests through economic coercion, hegemonism and bullying”.
Ivan Chu Siu-lun, chief adviser at the Hong Kong Sustainable Development Research Institute, said, “Talking about the port-selling behavior by CK Hutchison Holdings, if we only look at it from a business perspective, their business performance is not expected to be affected much in 2025 because of their global business layout.”
“While certain political considerations are required in many cross-border transactions, the probability of direct intervention by the Hong Kong Special Administrative Region government is low because direct government intervention in business activities may damage the city’s image as a free trade port. Therefore, in the end, the final result of this deal can also show the company’s political stance,” he said.
Also on Thursday, CK Hutchison Holdings’ sister company CK Asset Holdings, one of the largest property developers in Hong Kong, reported a 20 percent year-on-year decline of its net profit in 2024, dropping to HK$13.66 billion.
READ MORE: Hutchison’s port deal is much more than a pure business decision
Victor Li Tzar-kuoi, chairman of CK Asset Holdings and the eldest son of Li Ka-shing, said the residential property market in Hong Kong remained soft last year.
Despite challenging market conditions arising from high land premiums and development costs, the company recorded a gain in property sales last year, he said.
The company will continue to adopt a prudent strategy and identify a quality land reserve for future development, Li added.
Zhang Xiaoyang contributed to this story.
