Sou Hu Cai Jing·2025-08-16 11:52Core Viewpoint - The financial report of CK Hutchison Holdings revealed a dramatic 92% drop in net profit, attributed to a one-time non-cash loss from the merger of its UK telecom business, which obscured the underlying growth in core operations [1][3]. Financial Performance - The company's net profit attributable to ordinary shareholders for the first half of 2025 was only HKD 852 million, down from HKD 10.205 billion in the previous year [2]. - Excluding the one-time non-cash loss of HKD 10.469 billion, the actual profit would have been HKD 11.321 billion, reflecting an 11% year-on-year increase [1][2]. - Total revenue for the first half of 2025 was HKD 240.663 billion, compared to HKD 232.644 billion in 2024 [2]. Strategic Moves - The company has remained silent on a significant transaction involving the sale of 43 ports valued at USD 22.8 billion to a BlackRock consortium, indicating a strategic adjustment in response to regulatory pressures [5]. - The management hinted that the transaction would be postponed until after 2025 and is seeking to involve major mainland investors [5]. Business Segments - The port division reported revenue of HKD 235.97 billion, a 9% increase, with significant growth in storage revenue from Mexico and Europe [7]. - Retail business revenue grew by 8%, driven by strong sales of health and beauty products in the UK and Poland [7]. Challenges - The retail business in mainland China showed weak performance due to sluggish consumer spending, and the real estate sector faced significant challenges, with a 92% drop in sales revenue in Hong Kong [7]. - The vacancy rate in Hong Kong's office market reached a historical high of 17%, reflecting the struggles of the real estate segment [7]. Cash Management Strategy - The company emphasized a cautious approach to capital expenditure and new investments, maintaining strict cash flow management [8]. - As of June 30, the total cash and liquid investments amounted to HKD 1,372.68 billion, with a net debt to total capital ratio of 14.7% [10]. - The merger with the UK telecom business generated approximately HKD 13 billion in cash, contributing to a substantial "cash moat" for the company [10].