Core Viewpoint - CK Hutchison Holdings is planning a dual listing for its subsidiary, Watsons Group, in Hong Kong and the UK in the first half of 2026, aiming to raise approximately $2 billion (around HKD 15.5 billion) and potentially achieving a valuation exceeding $30 billion (approximately RMB 212.39 billion) [2] Group 1: Company Overview - Watsons Group, founded in 1841 in Hong Kong, is a leading international health and beauty retail group and has been a core retail business of CK Hutchison since its acquisition in 1981 [2] - The company has expanded aggressively in the Chinese market and has acquired several well-known international beauty brands [2] - Watsons Group operates over 17,000 stores across 31 markets, serving more than 6 billion customers annually through both offline and online platforms [2] Group 2: Financial Performance - For the first half of 2025, Watsons contributed total retail revenue of HKD 98.84 billion, a year-on-year increase of 8%, with EBITDA reaching HKD 7.974 billion, up 12% [3] - The total number of global stores reached 16,935, and the loyalty membership exceeded 175 million, with exclusive product sales accounting for 36% of total sales [3] - However, the business in China faced challenges, with total revenue declining by 3% and a net reduction of 145 stores, alongside a 1.0% decrease in same-store sales [3]

Core Viewpoint - CK Hutchison Holdings is planning a dual listing for its subsidiary Watsons Group in Hong Kong and the UK in the first half of 2026, aiming to raise approximately $2 billion (about HKD 15.5 billion) and potentially achieving a valuation exceeding $30 billion (approximately RMB 212.39 billion) [1][2]. Group 1 - Watsons Group was founded in Hong Kong in 1841 and is a well-known international health and beauty retail group [2]. - The group was acquired by Li Ka-shing in 1981 and has since expanded aggressively, particularly in the Chinese market, acquiring several international beauty brands [2]. - As of the first half of 2025, Watsons contributed HKD 98.84 billion in total revenue to the retail segment of CK Hutchison, representing a year-on-year growth of 8%, with EBITDA reaching HKD 7.974 billion, up 12% [2]. Group 2 - Despite overall growth, Watsons' business in China faced challenges, with total revenue declining by 3% and a net reduction of 145 stores, alongside a 1.0% drop in same-store sales [2]. - The company operates over 17,000 stores across 31 markets, serving more than 6 billion customers annually through both offline and online platforms [2].

Group 1 - CK Hutchison Holdings Limited (referred to as "CK Hutchison") is considering the spin-off of its Watsons Group, with plans for dual listings in Hong Kong and the UK, aiming to raise up to $2 billion (approximately RMB 14.215 billion) [1] - The IPO plan for Watsons was previously delayed due to the pandemic and a downturn in investor sentiment, but with the recent recovery in the global IPO market, the spin-off is back on the agenda, potentially starting in the first half of 2026 [1] - The listing plan for Watsons is still in the preliminary evaluation stage, with no final decisions made regarding the specific issuance scale and timeline [1] Group 2 - CK Hutchison's retail segment, which includes Watsons Group, reported total revenue of HKD 98.84 billion (approximately RMB 90.271 billion) for the first half of 2025, representing an 8% year-on-year increase [2] - Despite strong global performance, revenue in China totaled HKD 6.666 billion (approximately RMB 6.088 billion), reflecting a year-on-year decline of 3.1% [2] - The announcement indicated that the health and beauty product business in China will continue to face challenges in the second half of the year [2]

Core Viewpoint - CK Hutchison Holdings (0001.HK) is considering a dual listing for its subsidiary, Watsons Group, in Hong Kong and the UK, with an IPO planned for the first half of next year [1]. Group 1: Company Background - Watsons, founded in 1841, is a historic health and beauty retail group acquired by Li Ka-shing in 1981 [4]. - In 2014, CK Hutchison sold 24.95% of Watsons Group to Singapore's Temasek for HKD 44 billion, making Temasek the second-largest shareholder [4]. Group 2: Financial Performance - CK Hutchison's retail business, which includes Watsons, reported a revenue increase of 4% to HKD 190.19 billion for 2024, with EBITDA rising 1% to HKD 16.395 billion [5]. - However, the Chinese market for health and beauty products saw an 18% revenue decline, while other Asian markets grew by 6% and European markets by 8% [5]. - EBITDA for the Chinese market dropped by 55%, negatively impacting overall profitability in Asia, while Europe saw a 9% increase [5]. Group 3: Market Challenges - The Chinese market is the only region where Watsons experienced declines in revenue, profitability, and store count, with a 3% revenue drop and a 53% EBITDA decline in the first half of 2025 [7]. - As of June 30, 2025, the total number of retail stores globally increased by 2% to 16,935, but the number of stores in China decreased by 4% to 3,630 [7]. - CK Hutchison indicated that the health and beauty business in China will continue to face challenges in the second half of the year, prompting Watsons to enhance its value positioning and optimize store locations [7].

Core Viewpoint - CK Hutchison Holdings is considering a dual listing for its subsidiary, Watsons, aiming to raise up to $2 billion, with an expected valuation exceeding $30 billion, potentially making it one of the largest consumer retail IPOs in Hong Kong in recent years [2][4]. Company Overview - Watsons Group, founded in 1841, operates over 17,000 stores across 31 markets, serving more than 6 billion customers annually through both offline and online platforms [4][6]. - The retail segment of Watsons reported total revenue of HKD 98.84 billion for the first half of 2025, reflecting an 8% year-on-year increase, although revenue in China declined by 3.1% to HKD 6.666 billion [4][5]. Financial Performance - For the first half of 2025, Watsons achieved: - Total revenue: HKD 98,840 million, up 8% from HKD 91,469 million in 2024 [5]. - EBITDA: HKD 7,974 million, a 12% increase [5]. - EBIT: HKD 6,180 million, a 14% increase [5]. - Store count: 16,935, a 2% increase from 16,548 [5]. Market Challenges - The Chinese market continues to pose challenges, with a 3% decline in revenue for the fourth consecutive year, attributed to low consumer demand and store closures [12][14]. - Despite the challenges in China, Watsons' European operations showed strong growth, particularly in Eastern Europe, where revenue increased by 16% [12][14]. Strategic Direction - Watsons is focusing on an O+O (Online + Offline) model to adapt to market changes and enhance its global network, leveraging its experience in the Chinese market [14].

Core Insights - CK Hutchison Holdings is considering a dual listing for its subsidiary, Watsons, aiming to raise up to $2 billion [1] - The IPO is planned for the first half of next year, with a potential valuation exceeding $30 billion, making it one of the largest consumer retail IPOs in Hong Kong in recent years [1] Company Overview - Watsons Group, founded in 1841, is a leading global health and beauty retailer operating over 17,000 stores across 31 markets, serving more than 6 billion customers annually through both online and offline platforms [1] - The retail segment of Watsons reported total revenue of HKD 98.84 billion for the first half of 2025, reflecting an 8% year-on-year increase [1] - However, revenue in China decreased by 3.1% to HKD 6.666 billion, indicating ongoing challenges in the health and beauty product sector in that market [1] Parent Company Information - Watsons Group is a member of CK Hutchison Holdings, which operates in 50 countries and regions across four core businesses: ports and related services, retail, infrastructure, and telecommunications [1] - As of November 21, CK Hutchison Holdings has a total market capitalization of HKD 205 billion [1] Previous Listing Discussions - In 2024, there were previous discussions regarding Watsons' potential listing, with Temasek, a sovereign wealth fund holding shares in Watsons, confirming that the listing plan remains intact, although the final decision on timing and details lies with Watsons' board and management [2]

Core Viewpoint - CK Hutchison Holdings (00001) is considering a dual listing for its subsidiary, Watsons, one of the largest health and beauty retailers globally, potentially raising up to $2 billion [1] Group 1: IPO Plans - The groundwork for Watsons' listing in Hong Kong and the UK is already underway, with an IPO planned for the first half of next year [1] - If successful, Watsons' valuation could exceed $30 billion, making it one of the largest consumer retail IPOs in Hong Kong in recent years [1] Group 2: Company Performance - Watsons Group, founded in 1841, operates over 17,000 stores across 31 markets, serving more than 6 billion customers annually through both offline and online platforms [1] - According to CK Hutchison's financial report for the first half of 2025, the retail segment, which includes Watsons, generated total revenue of HKD 98.84 billion, reflecting an 8% year-on-year increase [1] - However, revenue in China amounted to HKD 6.666 billion, showing a decline of 3.1% year-on-year, with ongoing challenges expected in the health and beauty product sector in the second half of the year [1] Group 3: Parent Company Overview - Watsons Group is a member of CK Hutchison Holdings, which operates in 50 countries and regions, focusing on four core businesses: ports and related services, retail, infrastructure, and telecommunications [1] - As of November 21, CK Hutchison's total market capitalization reached HKD 205 billion [1] Group 4: Previous Listing Discussions - In 2024, there were previous discussions regarding Watsons' potential listing, with Temasek, a sovereign wealth fund holding shares in Watsons Group, confirming that the listing plan remains intact, although the final decision on timing and fundraising details lies with Watsons' board and management [2]

Core Insights - Dr. Vicky Ni, CEO of Watsons Group, has been recognized as one of the "Most Influential Businesswomen in Asia 2025" by Fortune magazine, ranking sixth and being the only leader from the retail sector in the top ten [1][10]. Group 1: Leadership and Recognition - Dr. Ni shared insights on leading a 185-year-old company at the Fortune Innovation Forum, emphasizing the importance of adapting to changing market conditions while maintaining a strong brand reputation [3][5]. - The recognition highlights Dr. Ni's exceptional leadership skills and significant impact within the retail industry [10]. Group 2: Business Strategy and Innovation - Watsons Group operates over 17,000 stores across 31 markets, showcasing its leading position in the health and beauty retail sector [3]. - Dr. Ni emphasized the need for companies to listen carefully to customers, colleagues, and partners, balancing rational and emotional approaches to business development [6][7]. - The company focuses on talent development and organizational flexibility to quickly adapt to market changes while preserving its core values [7]. Group 3: Personal Insights and Leadership Style - Dr. Ni attributes her leadership resilience to her background as an athlete, which has shaped her decision-making and team-building skills [7]. - The company aims to integrate "art and science" in retail by utilizing data analytics and artificial intelligence to provide personalized promotions while maintaining emotional connections with customers [7].