Principal Activities
CK Hutchison has five core businesses - ports and related services, retail, infrastructure, telecommunications and finance & investments and Others.
Latest Results
The Group's profit attributable to shareholders for the 6 months ended 30-06-2026 amounted to HKD 26.80 billion, an increase of 3045.7% compared with previous corresponding period. Basic earnings per share was HKD 6.9976. A dividend of HKD 0.7455 per share was declared. Turnover amounted to HKD 136.49 billion, a decrease of 1.9% over the same period last year, gross profit margin down 4.0% to 57.5%. (Announcement Date: 13 Aug 2026)
Business Review - For the six months ended June 30, 2026
Ports and Related Services
This division reported revenue of HK$24,520 million, an increase of 4% compared to the first half of 2025, and was flat against the same period last year in local currencies. An 8% growth in storage income mainly contributed by Oman and Pakistan, was fully offset by a 1% reduction in overall throughput as a result of reduced volume from Panama operations following their forced termination in late February 2026. Excluding Panama, throughput grew by 3% year-on-year mainly from Yantian and Shanghai Ports and major terminals in Asia. The impact of the significant disruptions in the Strait of Hormuz on the division’s Middle East segment was slightly favourable, as the halt in quayside activities at the ports in the UAE was more than offset by additional adhoc transshipment volumes at Sohar, a deepsea port located in Oman.
Despite the loss of contribution from Panama, EBITDA(4) of HK$9,032 million and EBIT(4) of HK$6,730 million, increased by 4% and 3% respectively in reported currency. Excluding Panama, underlying EBITDA and EBIT increased by 10% and 9% respectively in reported currency, while in local currencies, underlying EBITDA and EBIT grew by 6% and 5% respectively, reflecting the division’s strong underlying performance mainly arising from the favourable performance of Yantian and Shanghai ports, as well as Mexico from higher ancillary services income, partly offset by the reduced contribution from a shipping line associated company.
Looking into the second half, the Middle East situation remains highly unpredictable and trade tensions, including the re-introduction of tariffs by the US Administration, will continue to affect global trade. Front-loaded cargoes in response to expected tariff increases will add pressure to sustained volume growth. However, with the division’s geographically diversified portfolio, favourable mix of operations in gateway and transhipment ports, and continued focus on productivity and cost efficiencies, the division expects to achieve earnings growth in 2026 as a whole.
Retail
The division’s total revenue, EBITDA(5) and EBIT(5) of HK$107,731 million, HK$8,681 million and HK$6,749 million all increased by 9% in reported currency and 5% in local currencies against the same period last year, continuing year-over-year growth post COVID. The results were driven by solid performances across most health and beauty segments, as well as a strong recovery in the retail operations in Hong Kong. The higher contribution from this division compared to the first half of 2025 was primarily driven by an overall comparable stores sales growth of 3.6%, combined with enhanced productivity in portfolio and margin management.
Looking ahead, the division is expecting to maintain growth for the full year despite soft consumer sentiment in some of its markets. Inflationary pressure is expected to have mild impact to the division’s performance. As AS Watson celebrates 185 years of operation, the Retail division will continue to expand its loyalty member base, which currently stands at 183 million members. It will also continue to drive revenue growth through its integrated offline plus online platforms, and will remain disciplined on investments in new stores and refurbishments. At the same time, it will continue to develop and invest in industry leading technologies, including AI tools and agents.
Infrastructure
The Infrastructure division comprises a 75.67% interest in CK Infrastructure Holdings Limited (“CKI”), a subsidiary listed in Hong Kong as well as interests in five co-owned infrastructure investments with CKI. This division’s results included the gain on disposal of UK Rails which was completed in January 2026, as well as the gain on the full divestment of CKI’s interest (including Power Assets’share) in UK Power Networks in May 2026. After taking into account the Group’s reclassification and consolidation adjustments, an aggregated disposal gain of HK$17,753 million under Pre-IFRS 16 basis was recognised during the first half of 2026. During the period, the division also recognised a HK$2,222 million non-cash write-off of the acquisition premium allocated by the Group to certain infrastructure assets by reference to the latest recoverable amounts.
CKI
CKI announced net profit attributable to shareholders under Post-IFRS 16 basis of HK$21,252 million, 389% higher than the same period last year, primarily driven by substantial gains generated from the divestments of UK Power Networks and UK Rails in the first half of 2026, coupled with steady operating performance across other major businesses.
Looking ahead, despite the challenging macro environment, CKI’s resilient business model, prudent management and strong financial profile position the division well to capitalise on future growth opportunities and weather any possible turbulence.
CK Hutchison Group Telecom
CKHGT and 3 Group Europe performance as reported below reflect their underlying results, which exclude UK Telecom results for both 2026 and 2025, as well as the one-time non-cash loss arising from the UK telecommunication merger and related impacts recognised in the first half of 2025 which included HK$11,360 million(6) reflected in CKHGT results together with HK$774 million(7) reflected in 3 Group Europe results.
Underlying revenue of CKHGT was HK$32,774 million (3,590 million), 7% higher against the same period last year in reported currency. Underlying EBITDA(8) and EBIT(8) of HK$10,190 million (1,116 million) and HK$1,787 million (195 million) were 5% and 37% lower respectively against the same period last year in reported currency, primarily due to non-recurring treasury gains of approximately HK$700 million from bond buybacks recognised in the first half of 2025 and lower underlying EBITDA and EBIT contribution from 3 Group Europe.
Underlying revenue of HK$29,040 million was 1% lower against the same period last year in local currencies, primarily driven by lower wholesale revenue due to loss of wholesale business in Italy, partly offset by growth in net customer service revenue from a higher customer base. Overall, 3 Group Europe reported a 2% lower total margin in local currencies.
Underlying EBITDA(9) of HK$9,352 million was 5% or HK$507 million lower against the same period last year in local currencies, primarily due to Wind Tre as its improved net customer service margin and stringent cost controls could only partly mitigate the loss of wholesale business. All other operations reported better or stable total margin, leading to improved EBITDA performance across all countries except Austria. Depreciation and amortisation increased by 2% or HK$117 million primarily due to an increase in 3 Group Europe’s network asset base. Correspondingly, underlying EBIT(9) of HK$1,506 million was 30% or HK$624 million lower against the same period last year in local currencies mainly driven by lower EBITDA.
Looking into the remainder of the year, 3 Group Europe operations will focus on reducing costs to improve profitability in the second half. 3 Group Europe will continue implementing initiatives, including by developing and adopting industry leading technology, AI tools and AI agents, to increase productivity and reduce costs over the next five years. Operationally, 3 Group Europe will aim to maintain stable underlying performance through growing its customer base and expanding new product offerings.
Finance & Investments and Others
This segment reported underlying EBITDA and EBIT improvement against last year, primarily due to higher contribution from Cenovus Energy and favourable performance in IOH, partly offset by the Group’s share of non-recurring gain from disposal of non-core assets by HUTCHMED in 2025, as well as adverse performance of the Marionnaud businesses.
The Group’s 16.7% share of Cenovus Energy’s Post-IFRS 16 EBITDA, EBIT and net earnings were HK$8,774 million, HK$5,999 million and HK$4,160 million respectively, a significant increase of HK$4,058 million, HK$3,695 million and HK$2,524 million compared to the same period last year respectively. The substantial increase in Cenovus’contribution was mainly driven by favourable commodity prices and upstream production volume increase after the acquisition of MEG Energy in late 2025, as well as strong operational performance across all its upstream and downstream businesses. In July 2026, Cenovus announced that it had achieved the major milestone of producing over 1 million BOE per day which it expects to continue to grow in the second half.
IOH, the Group’s telecommunications joint venture in Indonesia, delivered promising financial results, driven by robust data traffic growth and a one-off gain from a disposal of certain non-core fibre assets. On a post-IFRS 16 basis, revenue, EBITDA, and net earnings increased by 13%, 14%, and 85% respectively, compared to the same period last year. Excluding the one-off gain, underlying net earnings increased 49%.
The Group’s liquidity and financial profile was significantly strengthened with the cash proceeds arising from the disposals of UK Rails and UK Power Networks, as well as cash flow generation from well controlled capital expenditure and disciplined working capital management across its businesses. Consolidated cash and liquid investments at 30 June 2026 totalled HK$186,925 million and consolidated total bank and other debts(10) amounted to HK$250,606 million, resulting in consolidated net debt(10) of HK$63,681 million (31 December 2025–HK$113,789 million) and net debt to net total capital ratio(10) of 8.1%, a 5.8%-points improvement from the 13.9% reported for the year ended 31 December 2025.
(10) Total bank and other debts are defined, for the purpose of“Net debt”calculation, as the total principal amount of bank and other debts and unamortised fair value adjustments arising from acquisitions. Net debt is defined as total bank and other debts less total cash, liquid funds and other listed investments. Net total capital is defined as total bank and other debts plus total equity (adjusted to exclude IFRS 16 effects) and loans from non-controlling shareholders net of total cash, liquid funds and other listed investments. The consolidated net debt to net total capital ratio under IFRS 16 basis, after including IFRS 16 impact in total equity, was 8.2% (31 December 2025: 14.1%).
Business Outlook - For the six months ended June 30, 2026
The operating environment for the rest of 2026 is expected to remain challenging for the Group’s businesses. Overall a cautious approach is dictated as we go through the second half of the year. With demand in certain segments expected to soften, the Group’s core businesses will keep a heightened focus on cost and cashflow management in order to respond nimbly to conditions in their markets as they develop. The Group will also maintain its disciplined capital allocation to support its strong financial and liquidity profile. Finally, the Group will aim to deliver stable performance and to preserve optionality to enhance shareholder value through accretive transactions as and when opportunities arise.
Source: CK Hutchison (00001) Interim Results Announcement |