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Sandy Li

Victor Li Tzar-kuoi’s CK Asset Holdings announced a 16.4 per cent increase in core profit for the six months to June, driven by strong property sales in Hong Kong that it locked in before the housing market turned sour.
Underlying interim profit, excluding investment property revaluation and property disposal, came to HK$14.05 billion (US$1.8 billion), up from HK$12.07 billion in 2018.
CK Asset, the second largest developer by market value in Hong Kong, said revenue rose 41 per cent to HK$34 billion for the period.
Net profit dropped 38.8 per cent per cent to HK$15.1 billion because of an absence of sales of investment properties. In 2018, the company recorded asset-disposal gains of HK$11.75 billion, largely generated by the sale of The Center, an iconic office tower in Central, for a record-breaking HK$40.2 billion.
Hong Kong property transactions drop by 48 per cent
An interim dividend of 52 HK cents per share was declared, up from the 47 HK cents given last year.
CK Asset – which did not launch any new residential projects in the first half of this year –
said it has HK$53.54 billion of contracted sales yet to appear on the balance sheet. Of that, about HK$40 billion is scheduled to be booked as profit in 2019, it said during an analysts’ briefing after the results announcement.
Under accounting rules, developers are required to book the profit only when a project is delivered to buyers.
“Fewer project sales this year will only reflect in its result for the next two to three years,” said Raymond Cheng, head of Hong Kong and China property research at CGS-CIMB Securities.
Hong Kong’s property market has turned sour lately, with prices of lived-in homes falling 0.8 per cent in June as the protracted US-China trade war and the escalating protests against a now-shelved extradition bill took a toll on sentiment.
“Despite the prolonged global political and economic uncertainty, the local property market remains
sound. Changes in global market conditions and Hong Kong housing policies will continue to be
determining factors for the property sector,” said chairman Victor Li, who took over as chairman of CK Asset last year after the retirement of his father, the well-known tycoon Li Ka-shing.
CK Asset is no longer a pure property company a year after Victor Li takes over
“The group has a pipeline of property projects under planning and development, and is anticipated to generate profit contribution in the years to come,” he said in a filing to the Hong Kong stock exchange.
Shares in the company closed 3.6 per cent lower at HK$57.2 on Thursday, bringing total losses to 21 per cent from the 52-week high of HK$72.5.
In the first half of the year, CK Asset said 51 per cent of its profit was recurrent in nature – regular, stable income from things like aircraft leasing, infrastructure and utility investments – while property sales accounted for 49 per cent.




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Hong Kong property

Victor Li’s CK Asset sees core profit rise 16 per cent thanks to strong property sales before market soured

CK Asset’s under-construction Seaside Sonata development on Hai Tan Street, Sham Shui Po. Photo: Tory Ho

Victor Li took over as chairman of CK Asset Holdings last year after the retirement of his father, the well-known tycoon Li Ka-shing. Photo: Bloomberg

Hong Kong tycoon Victor Li uses cash from sale of The Center to buy London office tower for £1 billion

5 Broadgate, a grade A office building in London, serves as the London headquarters of the Swiss investment bank UBS. Photo: Handout

Gerald Ma, a Member of the Executive Committee of CK Asset poses for picture. 14JUN18. HANDOUT

CK Asset Holdings bought 5 Broadgate, a new Grade-A office building for 1 billion pounds. 5 Broadgate is a new Grade-A office building with a gross external area of 1.2 million sq. ft. It is situated adjacent to Liverpool Street train and subway station in London. 14JUN18. HANDOUT

Hong Kong's Victor Li, son of 'Superman', has hard act to follow

Victor Li Tzar-kuoi, left, with father Li Ka-shing, right,  at a Cheung Kong Holdings Limited news conference on May 25, 2012. Photo: SCMP

Victor Li Tzar-kuoi (L), son of Cheung Kong Holdings chairman Li Ka-shing (R), attends a press conference with his father. Photo: Felix Wong/SCMP

Richard Li Tzar Kai, younger son of Hong Kong tycoon Li Ka-shing.

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Hong Kong’s second largest developer said revenue rose 41 per cent to HK$34 billion in the first half of 2019



Hong Kong’s second largest developer announced a 16.4 per cent increase in core profit for the six months to June


Victor Li

Victor Li’s CK Asset sees core profit rise 16 per cent thanks to strong property sales before market soured

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} Hong Kong’s second largest developer said revenue rose 41 per cent to HK$34 billion in the first half of 2019

Hong Kong’s second largest developer said revenue rose 41 per cent to HK$34 billion in the first half of 2019