CK Hutchison Flags Political Risk as Port Deal Upsets China

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(Bloomberg)-CK Hutchison Holdings Ltd. From the deterioration of a global business environment due to geopolitical and commercial tensions, the weakest Hong Kong Group mentioned the weakest of the expected while the ports sale plan faces uncertainty after Beijing pressure.

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Billionaire Li Ka Cheng has announced a 27 % decrease in net income to $ 17.1 billion Hong Kong ($ 2.2 billion) for 2024, and analysts' expectations for $ 22.5 billion Hong Kong, according to a statement on Thursday. The revenues came at $ 476.7 billion, Hong Kong, compared to $ 462 billion in the previous year. It announced the distribution of profits throughout the entire year of $ 2.2 Hong Kong per share, compared to $ 2.53 Hong Kong per share a year ago.

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CK Hutchison, led by Lee Victor Lee, was arrested at the intersection of the growing tensions between the United States and China since it announced an agreement to sell 43 degrees – including two in Panama – to a union led by Blackrock Inc. At a time when the berries were determined.

“It is expected that the operating environment of the group's companies is expected to be volatile and unpredictable,” Victor Lee, Chairman of Victor Li, said in the statement. He warned of the opposite winds of geopolitical developments, which in turn could spawn the supply chain disorders in the first part of 2025.

He told me that the group will carry out capital spending and new investment, while its business tasks to increase productivity and reduce spending on operation.

Bloomberg stated that many Chinese state agencies are studying the CK Hutchison Ports deal for any possible security violations or violations of combating monopoly. It is not clear what China can withdraw from China to prevent the deal, given that it only involves the company's outer assets. The group kept all its ports in Hong Kong and the main righteousness of China.

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The CK Hutchison statement did not mention the sale of its portfolio, including the two stations that operate on the Panama channel. While the group usually holds press and analysts after announcing its annual results, it has been overcome this year, while highlighting the sensitivity of the deal.

The company announced a 11 % increase in revenue in its ports and relevant services, with pre -interest, taxes, consumption and consumption by 19 %, with the help of more export activities in a port in southern China, in addition to transferring the supply chain from the ports in Asia and Latin America.

But the ports sector remains the smallest contributor to CK Hutchison's revenues with 9 % inputs, and is behind other companies including retail, infrastructure and communications.

The group informed the progress of the process of integrating a plan for its British business of 15 billion pounds with the Vodafone Group, which obtained approval from the anti -monopoly authorities in the country. She said in the statement that the group is working with the authorities to put the final pledges to close the transaction during the first half of this year.

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Meanwhile, investors have strengthened bets to the highest level in eight years, waiting for more clues in the ports deal, a final agreement that is expected to be signed by April 2.

The group's operations in Hong Kong and China mainly include ports in places such as Schinshen, Shanghai, supermarkets, and retail health, beauty, communications and biotechnology development. These companies can become targets if the Chinese authorities decide to punish the company to sell to the United States what they consider strategic assets for the benefit of China.

But the various global wallets of the group can help alleviate the impact of possible political repercussions. Hong Kong and China formed 12 % of revenues in 2024, while Europe, Canada and Australia formed the bulk of the rest.

I reported ARM CK Asset Holdings Ltd. Hong Kong, the company's main real estate market, suffers from a long shrinkage due to expensive interest rates and home dependence. CK, along with other developers in the city, will have to provide apartments on cheap to seduce buyers.

(Updates through the details of the profit statement.)

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