CK Hutchison profits up 3pc, but Li Ka-shing fears Brexit impact
HONG KONG's CK Hutchison Holding first half net profit increased three per cent to HK$14.9 billion (US$1.92 billion), drawn on revenues of HK$180.5 billion, which declined eight per cent year on year.
The UK accounted for 39 per cent of CK Hutchison's pre-tax profit and 21 per cent of its revenue in the first half, leaving the company fearful of the consequences of Britain's vote to quit the European Union.
"The withdrawal of the UK from the European Union will bring with it considerable challenge both for the UK and for Europe for at least the next two to three years," said company chairman Li Ka-shing, Hong Kong's richest man.
Mr Li, 88, has much riding on Britain as the country is the biggest profit generator at the billionaire's business empire, said Bloomberg News.
His comments came hours after the Australian government signalled it would block a bid by one of his units for a local electricity distributor, a deal that could have helped him diversify away from the UK.
Pre-tax profit at those businesses, which include ports, retail, infrastructure and telecommunications, rose four per cent year on year to HK$11.5 billion (US$1.5 billion).
"We are just a couple of months after Brexit. So far the numbers are pretty good, so we're cautiously optimistic," Mr Li's heir and eldest son, Victor, told analysts in an earnings briefing.
"On our existing business, we'll continue to look at new opportunities. I don't think we'll put the UK off of our list."
"After Brexit, investors are keen on knowing what the impact to Li Ka-shing's companies will be, as there are uncertainties on the UK's economy and currency," said Alex Au, managing director at Alphalex Capital Management in Hong Kong.
The elder Mr Li warned that macroeconomic and geopolitical uncertainties may hinder a global economic recovery and that market volatility will probably drag on through the second half of the year.
In China, the economy is going through "inevitable short-term fluctuations" and Hong Kong will be affected by global uncertainties, he said.
HONG KONG's CK Hutchison Holding first half net profit increased three per cent to HK$14.9 billion (US$1.92 billion), drawn on revenues of HK$180.5 billion, which declined eight per cent year on year.
The UK accounted for 39 per cent of CK Hutchison's pre-tax profit and 21 per cent of its revenue in the first half, leaving the company fearful of the consequences of Britain's vote to quit the European Union.
"The withdrawal of the UK from the European Union will bring with it considerable challenge both for the UK and for Europe for at least the next two to three years," said company chairman Li Ka-shing, Hong Kong's richest man.
Mr Li, 88, has much riding on Britain as the country is the biggest profit generator at the billionaire's business empire, said Bloomberg News.
His comments came hours after the Australian government signalled it would block a bid by one of his units for a local electricity distributor, a deal that could have helped him diversify away from the UK.
Pre-tax profit at those businesses, which include ports, retail, infrastructure and telecommunications, rose four per cent year on year to HK$11.5 billion (US$1.5 billion).
"We are just a couple of months after Brexit. So far the numbers are pretty good, so we're cautiously optimistic," Mr Li's heir and eldest son, Victor, told analysts in an earnings briefing.
"On our existing business, we'll continue to look at new opportunities. I don't think we'll put the UK off of our list."
"After Brexit, investors are keen on knowing what the impact to Li Ka-shing's companies will be, as there are uncertainties on the UK's economy and currency," said Alex Au, managing director at Alphalex Capital Management in Hong Kong.
The elder Mr Li warned that macroeconomic and geopolitical uncertainties may hinder a global economic recovery and that market volatility will probably drag on through the second half of the year.
In China, the economy is going through "inevitable short-term fluctuations" and Hong Kong will be affected by global uncertainties, he said.