CK Hutchison Holdings, the Hong Kong-listed conglomerate controlled by billionaire Li Ka-shing, saw its interim profits tumble 92% in the first half of 2025, weighed down by one-off costs linked to its UK telecom merger.
According to a stock exchange filing on Thursday, the company recorded a net profit of HK$852 million (US$109 million) for the six months ended June, compared with HK$10.2 billion a year earlier. Earnings per share fell to 22 HK cents from HK$2.66.
The steep decline was primarily due to a one-time non-cash loss of HK$10.47 billion (US$1.3 billion) arising from the completion of the UK merger between Three UK and Vodafone, which formed a new telecom entity, VodafoneThree. CK Hutchison owns 49% of VodafoneThree through its subsidiary CK Hutchison Group Telecom Holdings (CKHGT), while UK-based Vodafone Group holds the remaining 51%.
Excluding exceptional items, CK Hutchison’s underlying net profit rose 11% to HK$11.36 billion, supported by growth in its ports and global retail businesses. Total revenue increased 3% to HK$240.66 billion in the first half.
“Economic conditions in the first half of 2025 were challenging as geopolitical and trade tensions continued to escalate,” said Victor Li Tzar-kuoi, chairman of CK Asset and CK Hutchison. “These had mixed impacts on the group, with currency volatility generally favourable and commodity price volatility generally unfavourable to our results.”
Business Performance Highlights
- Ports: EBITDA rose 9% to HK$10.13 billion, boosted by front-loading demand ahead of trade tariffs and higher storage income.
- Retail: Revenue in Europe and Asia grew 8% to HK$98.84 billion, offsetting weaker performance in Hong Kong and mainland China.
- Infrastructure: Revenue rose 6% to HK$28.6 billion.
CK Hutchison also declared an interim dividend of 71 HK cents per share, up from 68 cents a year earlier. Shares of the conglomerate fell 0.4% to HK$52 on Thursday, despite a 25% gain for the year.
Ports Sale Controversy
The company provided no new updates on its controversial US$23 billion deal to sell 43 overseas ports, including two at the Panama Canal. CK Hutchison has faced criticism since unveiling the plan, especially amid US political scrutiny. The conglomerate recently signaled plans to include a mainland partner, reportedly Cosco Shipping, to enhance approval prospects. Meanwhile, Panama has initiated legal action to nullify the ports contracts, with the country’s leader hinting at potential state takeover.
