Li Ka-shing’s flagships post better-than-expected earnings, as its assets help Hong Kong’s wealthiest man beat forecasts even in a pandemic

Li Ka-shing’s two flagship companies reported better- than- expected earnings last year, as asset sales and revaluations on investment properties helped Hong Kong’s wealthiest man beat forecasts even amid the global Covid-19 pandemic.

CK Hutchison Holdings, the conglomerate with businesses in everything from consumer products to ports and telecommunications, said its 2021 net profit rose 15 per cent to HK$33.48 billion (US$4.28 billion), beating the consensus estimate of 10 analysts in Bloomberg’s poll.

CK Asset Holdings, Hong Kong’s second-biggest developer by value, said its bottom line jumped 30.5 per cent to HK$21.2 billion, bolstered by a HK$1.5 billion revaluation gain on its investments, also beating consensus estimates.

The conglomerate, with businesses touching almost every aspect of the average Hongkonger’s life, was able to pull through the worldwide pandemic because of its “financial discipline, resilience and agility,” said Victor Li Tzar-kuoi, chairman of both companies, during an online briefing.

“Covid-19 is a stress test which highlights the high quality of our assets, and shows that our financial discipline over the past few years has been able to withstand such a huge wave,” said Li, the tycoon’s elder son. “I have full confidence in the company’s quality assets. The cash flow, low gearing level, and the quality of our assets make the company very strong. We have lots of good opportunities to use our muscles.”