Real estate billionaire Li Ka-shing's Hong Kong-listed companies CK Hutchison Holdings and CK Asset Holdings saw their locally listed share prices mixed Friday after both companies reported lower profits and a second consecutive decline in annual revenue.
The companies' hotel, transport and retail interests continue to weather the continuing virus pandemic.
CK Hutchison shares were last traded 2.31% lower at HK61.45 but CK Asset shares were last traded up 5.84% at HK$49.80.
Net profits fell 27% at CK Hutchison and 32.5% at CK Asset to reach HK$29.1 billion ($3.7 billion) and HK$19.34 billion respectively, Li's son and current Hutchison chairperson Victor Li Tzar-kuoi shared on an earnings call Thursday.
Operating profits at Hutchison's retail declined by 15%, while the downturn was even more pronounced in its port trade operations which reported a 19% slump.
Revenue at the company also dropped 8%, but the junior Li remained optimistic. "CK Hutchison's cash flows are very good with a low debt leverage so we will certainly seek investment opportunities, especially in businesses with stable cash flows," he said.
CK Asset retained its title as Hong Kong's second largest property developer in terms of market capitalization last year, despite its property sales in the city falling by more than 80%.
The company plans to unveil three new projects this year and could stand to rake in more than HK$20 billion through the sale of 2,400 units.
Revenue derived from CK Asset's hospitality businesses plunged by half in 2020 to reach HK$2.06 billion.
Average occupancy at the Harbour Grand and Harbour Plaza hotels hovered around 20% last year, significantly lower than the citywide hotel occupancy rate of 46%, according to government data.
To be sure, the Li empire remains relatively financially secure compared with some businesses that have had to shutter their doors altogether due to the pandemic.
"Based on the last year, for hotels, not making losses is already good performance," said Li, who looks forward to "revenge spending in tourism" as social distancing measures are loosened in the future.
Keen to make the most of the situation, both CK Hutchison and CK Asset are looking to bolster acquisitions in regions with "clear rule of law and which are safe for our colleagues to travel to," said Victor Li.
