CK Asset Holdings, the development business run by Hong Kong’s richest man, Li Ka-shing, reported falling revenue in the first six months of the year, with turnover down by 4.9% to HK$34.7bn (£3.4bn).
Revenue from property sales over the period was down by 44% to HK$4.6bn, as interest rates continued to hamper the market.
Rental income across the Hong-Kong listed business grew over the period, however, up by 8.9% to HK$3.1bn. A strong performance from Civitas, the UK-based social housing business CK bought in 2023 for £485m, helped offset declines in Hong Kong and mainland China.
“Locally, office space demand remained compressed amid a challenging macroeconomic cycle, while the retail sector was impacted by a northbound spending shift by residents and the changes in visitor consumption patterns,” said chairman Victor Li. “The Civitas social infrastructure portfolio in the UK, which benefited from inflation adjusted long-term leases, continued to deliver stable rental income contributions as well as significant and quantifiable social impact.”
Revenue from the Greene King pub business rose by 5% year-on-year to HK$11.8bn as the UK-based company upped prices during the six-month period to maintain profit margin.
Li said: “The trading environment for the UK hospitality sector remained tough despite signs of inflationary pressure moderating. Consumer confidence weakened due to high interest rates and cost of living. Greene King continued to improve sales growth and cash generation through strategic initiatives such as price optimisation and prudent management of costs and capital expenditure.”
He added: “With the support of the group, a dedicated team and a portfolio of excellent freehold properties and strong brands that showcase its rich heritage, Greene King is well poised to achieve sustainable growth and returns.”
Looking ahead, CK said it would continue to pursue long-term business growth through strategic investments in quality assets globally that yield attractive returns and recurring income.
“The group is well positioned to capture new investments in different asset classes and sustainability-related opportunities worldwide,” said Li.
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