CK Asset Holdings (1113) investor relations material

Executive summary

• Underlying profit rose 5% year-over-year to HK$6,640 million, with profit attributable to shareholders up 37.8% to HK$8,683 million, driven by HK$9,787 million in gains from UK joint venture disposals and despite a HK$6,023 million impairment on Hui Xian REIT.

• Dividend per share increased by 5.1% to HK$0.41, reflecting underlying profit growth.

• 60% of revenue and 92% of profit contribution were recurrent in nature.

• The group maintains a strong balance sheet and net cash position, emphasizing caution amid unpredictable macroeconomic and geopolitical conditions.

Financial highlights

• Total revenue reached HK$54,464 million, with profit contribution at HK$9.5 billion for the first half.

• Net book value per share stood at HK$114.31.

• 60% of revenue and 92% of profit contribution were recurrent.

• Profit from UK joint venture disposals totaled HK$9.8 billion.

• Profit contribution by region: Hong Kong 35%, UK 34%, Germany 9%, Australia, Canada, US 8% each, other Europe 5%, Mainland China 1.6%.

Outlook and guidance

• The group will continue to focus on investments with recurring income, prioritizing asset-heavy, long-term contracted cash flows in developed markets.

• Cautious approach to new investments due to ongoing market uncertainties and volatility.

• HK$6,013 million in contracted property sales not yet recognized, with HK$3,226 million scheduled for recognition in 2026.

• Cash proceeds from asset disposals position the group for future investment opportunities.

• Hong Kong property market shows solid improvement, but momentum may slow if interest rates remain high.