irasia.com - CK Hutchison Holdings Limited

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025

HIGHLIGHTS

(1) The Group has adopted International Financial Reporting Standard 16 "Leases" ("IFRS 16") accounting standard for its statutory reporting but its management reporting has remained on the precedent lease accounting standard International Accounting Standard 17 "Leases" ("IAS 17"). The Group believes that the IAS 17 basis ("Pre-IFRS 16 basis") metrics, which are not intended to be a substitute for, or superior to, the reported metrics on a IFRS 16 basis ("Post-IFRS 16 basis"), better reflect management's view of the Group's underlying operational performance. Pre-IFRS 16 basis metrics financial information is regularly reviewed by management and used for resource allocation, performance assessment and internal decision-making. As a result, the Group has provided an alternative presentation of the Group's EBITDA, EBIT and Reported earnings prepared under the Pre-IFRS 16 basis relating to the accounting for leases. Unless otherwise specified, the discussion of the Group's operating results in this results announcement is on a Pre-IFRS 16 basis as mentioned above.

(2) Total revenue, earnings before interest expenses and other finance costs, tax, depreciation and amortisation ("EBITDA") and earnings before interest expenses and other finance costs and tax ("EBIT") include the Group's proportionate share of associated companies and joint ventures' respective items.

(3) Reported earnings represent profit attributable to shareholders. Reported earnings per share for the year ended 31 December 2025 and 2024 is calculated based on profit attributable to ordinary shareholders and CKHH's number of shares in issue during the periods of 3,830,044,500.

(4) Reported earnings include both underlying results and one-off items. Underlying results for the year ended 31 December 2025 exclude one-time non-cash loss arising from the UK merger and related impacts of HK$10,922 million under Pre-IFRS 16 basis and HK$10,469 million under Post-IFRS 16 basis. Underlying results for the year ended 31 December 2024 exclude one-time non-cash impairment and other provisions on the Vietnam telecommunications business of HK$3,740 million under Pre-IFRS 16 and Post-IFRS 16 basis.

CHAIRMAN'S STATEMENT

The Global economic and geopolitical environment remained challenging in 2025.

The year saw slower growth in some major economies as well as persistent and increasing geopolitical tensions. These have led to an unprecedented evolution in tariff, sanctions, export-control, and national security regimes resulting in a volatile investment and trade environment, and in changing capital and trade flows.

Specifically for the Group, geopolitical pressure has led to a meaningful legal conflict with the Panamanian State relating to the Group's container terminal operations there, and has also complicated ongoing discussions with potential counterparties regarding possible new arrangements for the disposition of interests in the Group's global port operations outside of Panama, Hong Kong and the Mainland.

Notwithstanding this backdrop, the Group's highly diversified business and geographic spread largely mitigates the impact of adverse developments in any particular sector or country. Strong cash generation in the year has placed the group in a solid financial position with a net debt to net total capital ratio at year end of 13.9%.

During the year, the Group continued to actively manage shareholder value through various major transactions, which resulted in certain one-time non-cash accounting impact to the Group's reported earnings. In 2025, the Group completed the merger of its UK telecommunications business with Vodafone UK (the "UK merger") and recognised a one-time non-cash loss and related impacts of HK$10,922 million on a Pre-IFRS 16 basis⁽¹⁾. This compares to a one-time non-cash impairment and other provisions on its Vietnam telecommunications business of HK$3,740 million which the Group recognised in 2024.

On 26 February 2026, the Group announced the sale by CK Group (CK Infrastructure Holdings Limited, Power Assets Holdings Limited and CK Asset Holdings Limited) of 100% of their interests in UK Power Networks to Engie S.A.. Subject to completion occurring, the sale is expected to result in significant cash flow and net profits attributable to the Group in 2026.

Excluding the one-time losses mentioned above and on a Pre-IFRS 16 basis, the Group delivered underlying net earnings of HK$22,258 million, a 7% growth against 2024 in reported currency. Underlying EBITDA and EBIT both increased 9% in reported currency compared to last year, primarily from robust growth in the Ports division, favourable performance from CK Hutchison Group Telecom ("CKHGT") including certain treasury gains, higher contributions from Cenovus Energy, share of gains from disposal of non-core assets by the Group's listed associates as well as favourable foreign exchange movements.

On a reported basis, the Group's profit attributable to ordinary shareholders was HK$11,336 million for the year ended 31 December 2025. On a Post-IFRS 16 basis, reported profit attributable to ordinary shareholders was HK$11,841 million. Reported earnings per share were HK$3.09 for the year ended 31 December 2025 (31 December 2024 - HK$4.46).

Dividend

The Board of Directors recommends a final dividend of HK$1.602 per share (2024 final dividend - HK$1.514 per share), payable on Thursday, 11 June 2026, to shareholders (except for holders of treasury shares) whose names appear on the Register of Members of the Company at the close of business on Thursday, 28 May 2026, being the record date for determining shareholders' entitlement to the proposed final dividend. Combined with the interim dividend of HK$0.710 per share, the full year dividend amounts to HK$2.312 per share (2024 full year dividend - HK$2.202 per share). Currently, there are no treasury shares held by the Company (whether held or deposited in the Central Clearing and Settlement System, or otherwise).

Ports and Related Services

This division reported revenue of HK$48,895 million, an increase of 8% compared to 2024, mainly driven by 3% throughput growth mainly from Yantian and Shanghai Ports, as well as key terminals in Asia and Middle East, along with a 17% higher storage income compared to last year, primarily contributed by Mexico and European ports, partly offset by adverse performance of a shipping line associated company due to drop in market freight rate. EBITDA⁽²⁾ of HK$17,439 million and EBIT⁽²⁾ of HK$12,850 million, both increased by 8%, delivered through a combination of robust revenue growth and disciplined cost management.

Looking ahead to 2026, global trade growth is expected to slow down amid geopolitical risks and China-U.S. trade tensions. The conflicts in the Middle East region, if prolonged, will also shift trade routes away from the region. However, with the division's geographically diversified portfolio, the impact is expected to be mostly mitigated as other ports in the division may benefit from the diversion.

The Group will also continue to work to resolve its legal disputes with the Panamanian State and others relating to the Group's container terminal operations in Panama in a way that is fair and protects the interests of shareholders of the Group.

Retail

The division's total revenue of HK$209,267 million increased by 10% in reported currency against last year, while EBITDA⁽³⁾ and EBIT⁽³⁾ of HK$18,238 million and HK$14,553 million increased by 11% and 12% respectively. In local currencies, total revenue increased by 6%, while EBITDA and EBIT both increased by 5%. This division recorded positive growth against last year mainly attributable to the growth in Health and Beauty businesses in Europe and Asia. The favourable performance was partly offset by challenging business environment in the Health and Beauty China segment.

Looking ahead, the division's European and Asian operations are well-positioned to continue the growth momentum despite economic headwinds. Health and Beauty China is aiming to mitigate challenging market conditions through assortment enhancements, particularly focusing on own brand products, optimising the existing store network quality and enhancing online capabilities to drive online plus offline traffic. This division will focus on expanding and nurturing its 183 million loyalty members through optimisation of customer journey and disciplined short payback principle for investments in new stores and refurbishments as well as in advanced technology.

Infrastructure

The Infrastructure division comprises a 75.67% interest in CK Infrastructure Holdings Limited ("CKI"), a subsidiary listed in Hong Kong as well as interests in six co-owned infrastructure investments with CKI as of December 2025. The divestment of the division's 70% interest in UK Rails was completed in January 2026, with interests in five co-owned infrastructure investments with CKI remaining in this division thereafter.

CKI
CKI announced net profit attributable to shareholders under Post-IFRS 16 basis of HK$8,265 million, 2% higher than last year, reflecting steady operating performance across major businesses.

Looking into 2026, this division's regulated businesses will continue to provide steady and recurring income and the non-regulated businesses will grow organically and actively expand their portfolios. Together with its strong financial position, this division is well placed to capitalise on investment opportunities as they arise.

(1) The HK$10,922 million on a Pre-IFRS 16 basis one-time losses included HK$9,915 million of non-cash disposal loss, HK$1,445 million of transactional related expenses under CKHGT and transactional intercompany credit of HK$438 million under Finance & Investments and Others. Under Post-IFRS 16 basis, the one-time non-cash loss arising from the UK merger and related impacts totalled HK$10,469 million.

(2) Under Post-IFRS 16 basis, EBITDA was HK$20,424 million (31 December 2024: HK$18,848 million); EBIT was HK$14,218 million (31 December 2024: HK$13,123 million).

(3) Under Post-IFRS 16 basis, EBITDA was HK$27,909 million (31 December 2024: HK$25,594 million); EBIT was HK$15,841 million (31 December 2024: HK$14,099 million).

For more information, please visit http://doc.irasia.com/listco/hk/ckh/annual/2025/respress.pdf.

Source: CK Hutchison Holdings Limited

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(1)	The Group has adopted International Financial Reporting Standard 16 "Leases" ("IFRS 16") accounting standard for its statutory reporting but its management reporting has remained on the precedent lease accounting standard International Accounting Standard 17 "Leases" ("IAS 17"). The Group believes that the IAS 17 basis ("Pre-IFRS 16 basis") metrics, which are not intended to be a substitute for, or superior to, the reported metrics on a IFRS 16 basis ("Post-IFRS 16 basis"), better reflect management's view of the Group's underlying operational performance. Pre-IFRS 16 basis metrics financial information is regularly reviewed by management and used for resource allocation, performance assessment and internal decision-making. As a result, the Group has provided an alternative presentation of the Group's EBITDA, EBIT and Reported earnings prepared under the Pre-IFRS 16 basis relating to the accounting for leases. Unless otherwise specified, the discussion of the Group's operating results in this results announcement is on a Pre-IFRS 16 basis as mentioned above.
(2)	Total revenue, earnings before interest expenses and other finance costs, tax, depreciation and amortisation ("EBITDA") and earnings before interest expenses and other finance costs and tax ("EBIT") include the Group's proportionate share of associated companies and joint ventures' respective items.
(3)	Reported earnings represent profit attributable to shareholders. Reported earnings per share for the year ended 31 December 2025 and 2024 is calculated based on profit attributable to ordinary shareholders and CKHH's number of shares in issue during the periods of 3,830,044,500.
(4)	Reported earnings include both underlying results and one-off items. Underlying results for the year ended 31 December 2025 exclude one-time non-cash loss arising from the UK merger and related impacts of HK$10,922 million under Pre-IFRS 16 basis and HK$10,469 million under Post-IFRS 16 basis. Underlying results for the year ended 31 December 2024 exclude one-time non-cash impairment and other provisions on the Vietnam telecommunications business of HK$3,740 million under Pre-IFRS 16 and Post-IFRS 16 basis.

(1)	The HK$10,922 million on a Pre-IFRS 16 basis one-time losses included HK$9,915 million of non-cash disposal loss, HK$1,445 million of transactional related expenses under CKHGT and transactional intercompany credit of HK$438 million under Finance & Investments and Others. Under Post-IFRS 16 basis, the one-time non-cash loss arising from the UK merger and related impacts totalled HK$10,469 million.
(2)	Under Post-IFRS 16 basis, EBITDA was HK$20,424 million (31 December 2024: HK$18,848 million); EBIT was HK$14,218 million (31 December 2024: HK$13,123 million).
(3)	Under Post-IFRS 16 basis, EBITDA was HK$27,909 million (31 December 2024: HK$25,594 million); EBIT was HK$15,841 million (31 December 2024: HK$14,099 million).