Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025 HIGHLIGHTS Post-IFRS 16 (1) Basis Six months ended 30 June 2025 2024 2025 2024 Change HK$ million HK$ million HK$ per share HK$ per share Total Revenue (2) 240,663 232,644 Total EBITDA (2) 56,983 63,422 Total EBIT (2) 23,161 30,955 Reported earnings (3)(4) Underlying 1 1,321 10,205 2.96 2.66 +11% One-time items (4) (10,469) - 852 10,205 0.22 2.66 -92% Interim dividend per share 0.710 0.688 +3% Pre-IFRS 16 (1) Basis Reported Underlying (4) Six months ended 30 June 2025 2024 2025 2024 Reported currency change Local currencies change HK$ million HK$ million HK$ million HK$ million Total Revenue (2) 240,663 232,644 240,663 232,644 +3% +3% Total EBITDA (2) 44,998 52,201 55,920 52,201 +7% +6% Total EBIT (2) 20,487 28,843 31,409 28,843 +9% +8% Re ported earnings (3)(4) 440 10,192 11,362 10,192 +11% +9% (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”), bette r reflect management’s view of the Group’s underlying operatio nal performance. Pre-IFRS 16 basis metrics financial information is regularly reviewed by management and used for resource allocati on, 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 basi s relating to the accounting for leases. Unless otherwise specifi ed, 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 six months ended 30 June 2 025 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 six months ended 30 June 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 mi llion under Post-IFRS 16 basis. CKHH 2025 Interim Results Chairman’s Statement Page 1 of 197
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CHAIRMAN’S STATEMENT Economic conditions in th e first ha lf of 2025 were challenging as ge opolitical and trade tensions continued to escalate, with signif ican t uncertainties driving volatili ty in trade flows, global equity and commodity markets as well as w eak consumer sentiment. These had mixed impacts on the Group, with curren cy volatility generally favourable and commodity price volatility generally unfavourable to our results. The Group closed a majo r strategi c transaction with th e completion of the merger of its UK telecommunication business with Vodafone UK (the “UK merger”) in May 2025. Operationally, the Group delivered a promising 11% year-on-year underlying Pre-IFRS 16 net earnings growth to HK$11,362 million in the f irst half of 2025. This growth was attributable to an underlying EBITDA and EBIT increase of 7% and 9% resp ectively in reported currency compared to the first half of 2024, primarily from strong growth in the Ports divi sion, improvements in the Retail division, higher contribution from the Infrastructure division and favourable performance from CK Hutchison Group Telecom (“CKHGT”) including treasury operations, as well as the Group’s share of a gain on the partial disposal of a non-core asset by HUTCHMED. Growth was adversely impacted by a lower contribution from Cenovus Energy due to lower commodity prices and significant ma intenance and turnaround activities during the half. In connection with the UK merger, the Group r ecognised a one-time non-cash loss and related impacts of HK$10,922 million on a Pre-IFRS 16 basis(1 ). After taking this loss into account, the Group reported profit attributable to ordinary shareholders of HK$440 million for the six months ended 30 June 2025. From this merger, the Group also received net cash proceeds of approximately £1.3 billion. On a Post-IF RS 16 basis, reported profit attributable to ordinary shareholders, including the one-time non-cash UK merger loss and rela ted impacts, was HK$852 million. Reported earnings per share were HK$0.22 for the six months ended 30 June 2025 (30 June 2024 – HK$2.66). Dividend The Board of Directors recommends an interim dividend of HK$0.710 per share (30 June 2024 – HK$0.688 per share), payable on Thursday, 25 September 2025, to shareholders (except for holders of treasury shares, if any) whose names appear on the Register of Members of the Company at the close of business on Tuesday, 16 September 2025, being the record date for determining shareholders’ entitlement to the interim dividend. Currently, there are no treasury shares held by the Company (whether held or deposited in the Central Clearing and Settlement System, or otherwise). (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 & Investmen ts 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. CKHH 2025 Interim Results Chairman’s Statement Page 2 of 197
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Ports and Related Services This divisi on reported revenue of HK$23,597 million, an increase of 9% compared to first half of 2024, primarily driven by 4% higher throughput mainly fr om Yantian Ports, Shanghai Ports, and terminals in Asia and Middle East, as well as a 27% surge in storage income contributed by Mexico and European ports and the fa vourable performance of a shipping line associated company. Consequently, EBITDA(2) of HK$8,719 million and EBIT(2) of HK$6,508 million, increased by 10% and 12% respectively in the first half, as a resu lt of increased revenue from strong performance and efficient cost management. Looking into the second half, global trade and consumer demand will rema in volatile due to the uncertain outcome of trade disputes and geopolitical risks. However, with moderate organic volume growth at certain terminals, particularly in Asia, and additional volume from the new facility in Egypt, as well as improved operating marg in from cost efficiencies, the division expects to deliver good earnings growth for the full year. (2) Under Post-IFRS 16 basis, EBITDA was HK$10,132 million (30 Ju ne 2024: HK$9,319 million); EBIT was HK$7,161 million (30 June 2024: HK$6,472 million). CKHH 2025 Interim Results Chairman’s Statement Page 3 of 197
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Retail The division’s total revenue of HK$98,840 million increased by 8% in reported currency against the same period last year, while EBITDA (3) and EBIT(3) of HK$7,974 million and HK$6,180 million increased by 12% and 14% respectively. In local currencies, total revenue increased by 6%, while EBITDA increased by 8% and EBIT by 9%. The majo rity of this division’s operations improved against the same period last year driven by robust growth in Health and Beauty businesses in the UK, Poland and the Philippines. This was partly offset by adverse performance of Health and Beauty China which continue to suffer from weak consum er demand. Excluding Health and Beauty China, EBITDA and EBIT both achieved solid growth of 11% in local currencies compared to the first half of 2024. Looking ahead, most businesses in Europe and Asia are projected to continue to deliver strong results, while Health and Beauty China will continue to face headwinds in the second half. In order to mitigate challenges and maintain a sound financia l profile, Health and Beauty China is sharpening its value propositions and is optimising its store footprint and adding dark stores (4) to further enhance the online business capabilities. The division wi ll focus on expanding and nurturing its 175 million loyalty member base through optimisation of cust omer journey, driving re venue growth via its integrated online plus offline platform strate gy, and maintaining a s hort payback period for investments in new stores and refurbishments. (3) Under Post-IFRS 16 basis, EBITDA wa s HK$12,771 million (30 Jun 2024: HK$11,760 million); EBIT was HK$6,805 million (30 June 2024: HK$6,023 million). (4) Dark stores for H&B China are small fulfilment centres solely to fulfil online orders and are strategically located to enable quick delivery services. Dark stores complement the operation’s offline store locations and densifies the operational footprint in a cost efficient manner. CKHH 2025 Interim Results Chairman’s Statement Page 4 of 197
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Infrastructure The Infrastructure division comp rises 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. CKI CKI announced net profit attributable to shareholders under Post-IFRS 16 basis of HK$4,348 million, 1% higher than the same period last year, refl ecting steady performance of the portfolio of infrastructure assets despite geopolitical and economic uncertain ties characterised by shifting political landscapes, a complex interest rate outlook, trade disruptions and inflationary pressures. In July 2025, Eversholt UK Rails Group Limited, a joint venture compa ny of CKI, CK Asset Holdings Limited, Power Assets Holdings Limited and the Group, entered into an agreement to divest UK Rails. Completion of the transaction is subject to the fulfilmen t of certain conditions under the sales and purchase agreement. Once completed, the proceeds from this transaction will reduce CKI’s net debt to net total capital ratio significantly. Looking into the remainder of the year, this division’s regulated businesses will continue to provide steady and recurring income and the non-regulated businesses wi ll also generate good growth contributions. Together with its strong financial position, this division is well placed to capitalise on investment opportunities as they arise. CKHH 2025 Interim Results Chairman’s Statement Page 5 of 197
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CK Hutchison Group Telecom On 31 May 2025, the merger of 3 UK and Vodafone UK was completed with the formation of the combined business, VodafoneThree, now a 49% associated company of the Group. CKHGT also received approximately £1.3 billion net proceeds on completion of the merger. VodafoneThree is currently the larges t mobile network operato r in the United Kingdom with 28.8 million customers and is expected to deliver network improvements for its customers through seamless access of both networks. The combined network will also remove 16,500 km2 of “not spot” areas by the end of 2025. Revenue of CKHGT was HK$45,012 million (€5,216 million), 5% higher against last year in reported currency. EBITDA and EBIT included one-time non-cash loss on the UK merger and related impacts(5), excluding which, underlying EBITDA (6) of HK$13,160 million was 12% higher against the same period last year in reported currency, primarily due to treasury gains of HK$0.7 billion from bond buybacks, and higher underlying EBITDA contribution from 3 Group Europe. Underlying EBIT(6) of HK$2,518 million was 38% higher due to EBITDA growth, partly offset by higher depreciation of 3 Group Europe following the UK merger completion. 3 Group Europe Revenue of HK$41,958 million was 3% higher against the same period last year in local currencies, primarily driven by growth in net customer service revenue from the higher customer base, favourable revenue initiatives, hi gher MVNO and other wholesale revenue, as well as one month accretive contribution from the share of revenue of VodafoneThree. 3 Group Europe reported an overall 6% higher total margin in local currencies. Underlying EBITDA(7) of HK$11,816 million was 4% or HK$475 million higher against the same period last year in local currencies, primarily driven by one month accretive EBITDA contribution from VodafoneThree, as well as margin growth of other operations, partly offset by higher network costs from the expanded networks. Depreciation and amortisation increased by 5% or HK$487 million due to higher depreciation from enlarged network asset base and share of higher depr eciation of VodafoneThree following completion of the merger at the end of May 2025. Correspondingly, underlying EBIT(7) of HK$1,737 million was 1% or HK$12 million lower agai nst the same period last year in local currencies. For the remainder of the year, VodafoneThree plans to invest £1.3 billion in capex in its first year to accelerate the network deployment and will invest £11 billion over the next 10 years to create one of Europe’s most advanced 5G networks for a vastly superior mobile experience to its customers and businesses. The operation will also focus on delive ring the cost and capex s ynergies target of £700 million per annum by the fift h year after merger comp letion. The rest of the operations will aim to deliver stable underlying performance through growing customer base, continuing revenue initiatives, stringent cost discipline and stabilising depreciation under tight management of capital spending. All operations are engaged in a comprehensive review exercise to identify major opportunities to increase productivity and reduce costs over the next five years. (5) The HK$11,360 million on a Pre-IFRS 16 basis one-time losses included HK$9,915 million of non-cash disposal loss and HK$1,445 million of transactional related expenses. Under Post-IFRS 16 basis, the one-time non-cash loss arising from the UK merger and related impacts totalled HK$10,907 million. (6) Under Post-IFRS 16 basis, underlying EBITDA was HK$16,810 million (30 June 2024: HK$15,134 million); underlying EBIT was HK$2,945 million (30 June 2024: EBIT of HK$2,169 million). (7) 3 Group Europe EBITDA and EBIT excluding one-time UK merger related impacts of HK$774 million under Pre-IFRS 16 and Post-IFRS 16 basis. Under Post-IFRS 16 basis and excluding one-time UK merger related impacts, underlying EBITDA was HK$15,253 million (30 June 2024: HK$14,238 million); underlying EBIT was HK$2,154 million (30 June 2024: HK$2,031 million). CKHH 2025 Interim Results Chairman’s Statement Page 6 of 197
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Finance & Investments and Others This segment’s underlying EBITDA and EBIT results remained stable compared to the same period last year, primarily due to a one-time gain on the partial disposal of a non-core asset of HUTCHMED, largely offset by lower contributions from Cenovus Energy and Indosat Ooredoo Hutchison (“IOH”). The Group’s 17.1% share of Cenovus Energy’s Post-IFRS 16 EBITDA, EBIT and net earnings were HK$4,716 million, HK$2,304 million and HK$1,636 million, a decrease of HK$788 million, HK$809 million and HK$480 million compared to last year respectively, ma inly reflecting the decline in commodity prices a nd major maintenance and turnaround activities, partly offset by increased downstream throughput. IOH, the Group’s telecommunications joint venture in Indonesia, reported on a Post-IFRS 16 basis a 4% decline in EBITDA and a 15% decline in net profit compared to the same period last year, due to challenging business environment. The Group’s liquidity and financial profile further strengthened with the receipt of approximately £1.3 billion net proceeds upon completion of the UK m erger, as well as continued cash flow generation from measured capita l spending and disciplined working capital management. Consolidated cash and liquid investments at 30 June 2025 totalled HK$137,268 million and consolidated total bank and other debts(8) amounted to HK$256,589 million, resulting in consolidated net debt(8) of HK$119,321 million (31 December 2024 – HK $129,614 million) and net debt to net total capital ratio(8) of 14.7% (31 December 2024 – 16.2%). (8) Total bank and other debts are defined, for the purpose of “Net debt” calculation, as the total principal amount of bank and other debts and unamortised fair value adjustments arising from acquisitions. Net debt is defined as total bank and other debts less total cash, liquid funds and other listed investments. Net total capital is defined as total bank and other debts plus total equity (adjusted to exclude IFRS 16 effects) and loans from non-controlling shareholders net of total cash, li quid funds and other listed investments. The consolidated net debt to net total capital ratio under IFRS 16 basis, after including IFRS 16 impact in total equity, was 14.9% (31 December 2024: 16.4%). CKHH 2025 Interim Results Chairman’s Statement Page 7 of 197
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Sustainability In April 2025, the Group released its 2024 Sustainability Report, highlighting the latest sustainability performance and achievements thro ughout the year. The Group remain s dedicated to sustainable operations and pursuing the goal of achieving net-zero greenhouse gas emissions across its value chain by 2050. To date, the Group has achieved a pproximately 20% reduction in scope 1 and 2 emissions from the 2020 baseline and has also started reporting scope 3 emissions by categories, allowing stakeholders to better understand our emission performance across our full value chain. To support the delivery of the Grou p’s sustainability targets and reinforce organisational alignment across our operations, ma nagement compensation plans of cert ain core division s will incorporate measurable sustainability metrics this year. By em bedding these metrics, the Group aims to align divisional management priorities and encourage long-term sustainable business decisions across the Group. Diversity and inclusion are core values embraced by the Group which published its first “Workforce Diversity Policy” in 2025. The policy includes a clear direction and appr oach with respect to employment, including recruitm ent and selection, professiona l development and training, compensation and benefits, performance evaluation and career advancement. With regards to the US$1 billion US Dollar Green note issued in April 2024, the Group also published a Green Bond Report in 2025, outlining the scope of allocation and use of proceeds, with 46% of the funds being allocated to in Energy Efficiency pr ojects, 24% to Clean Tran sportation projects, 20% to Renewable Energy development and utilisation, and the remaining allocated to Circular Economy and Design projects. CKHH 2025 Interim Results Chairman’s Statement Page 8 of 197
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Outlook The global economic outlook in this half will continue to be un certain and unpredictable, with persistent unresolved trade and fiscal and mon etary policy issues affecting commodity prices, interest and currency rates, as well as consumer and business sentiment. Geopolitical uncertainty is likely to remain elevated. The Group will remain prudent on capital spending and new investment, and will maintain disciplined cash flow management in order to ensure that it retains a strong financial profile regardless of externalities. I would like to thank the Board of Directors a nd all our dedicated empl oyees around the world for their continued loyalty, diligence, professionalism and contributions to the Group. Victor T K Li Chairman Hong Kong, 14 August 2025 CKHH 2025 Interim Results Chairman’s Statement Page 9 of 197
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2 CK Hutchison Holdings Limited 2021 Interim Report Financial Performance Summary Post-IFRS 16 Unaudited Results for the six months ended 30 June 2025 HK$ million % Post-IFRS 16 Unaudited Results for the six months ended 30 June 2024 HK$ million % Change % Revenue (1) Ports and Related Services (1) 23,597 10% 21,594 9% 9% Retail 98,840 41% 91,469 39% 8% Infrastructure 28,627 12% 27,098 12% 6% CK Hutchison Group Telecom 45,012 19% 42,934 19% 5% Finance & Investments and Others 44,587 18% 49,549 21% -10% Total Revenue 240,663 100% 232,644 100% 3% EBITDA (1) Ports and Related Services (1) 10,132 15% 9,319 15% 9% Retail 12,771 19% 11,760 19% 9% Infrastructure 15,734 23% 14,847 23% 6% CK Hutchison Group Telecom 16,810 25% 15,134 24% 11% Finance & Investments and Others 12,005 18% 12,362 19% -3% Total Underlying EBITDA 67,452 100% 63,422 100% 6% One-off items (2) (10,469) – Total Reported EBITDA 56,983 63,422 -10% EBIT (1) Ports and Related Services (1) 7,161 21% 6,472 21% 11% Retail 6,805 20% 6,023 19% 13% Infrastructure 10,193 30% 9,754 32% 5% CK Hutchison Group Telecom 2,945 9% 2,169 7% 36% Finance & Investments and Others 6,526 20% 6,537 21% – Total Underlying EBIT 33,630 100% 30,955 100% 9% One-off items (2) (10,469) – Total Reported EBIT 23,161 30,955 -25% Interest Expenses and Other Finance Costs (1) (12,042) (11,933) -1% Profit Before Tax 11,119 19,022 -42% Tax (1) Current tax (4,494) (4,351) -3% Deferred tax (2,211) (1,134) -95% (6,705) (5,485) -22% Profit after tax 4,414 13,537 -67% Non-controlling interests and perpetual capital securities holders’ interests (3,562) (3,332) -7% Reported Profit Attributable to Ordinary Shareholder 852 10,205 -92% Add back: One-off items (2) 10,469 – Underlying Profit Attributable to Ordinary Shareholder 11,321 10,205 11% Note 1: Total revenue, EBITDA, EBIT, interest expenses and other finance costs and tax include the Group’s proportionate share of associated companies and joint ventures’ respective items. Total revenue, EBITDA and EBIT were adjusted to exclude non-controlling interests’ share of results of HPH Trust. Note 2: One-off items represent non-cash loss arising from the UK merger and related impacts of HK$10,469 million. CKHH 2025 Interim Results Financial Performance Summary Page 10 of 197
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3 CK Hutchison Holdings Limited 2021 Interim Report Financial Performance Summary Pre-IFRS 16 (1) Unaudited Results for the six months ended 30 June 2025 HK$ million % Pre-IFRS 16 (1) Unaudited Results for the six months ended 30 June 2024 HK$ million % Change % Local currencies change % Revenue (2) Ports and Related Services (2) 23,597 10% 21,594 9% 9% 10% Retail 98,840 41% 91,469 39% 8% 6% Infrastructure 28,627 12% 27,098 12% 6% 6% CK Hutchison Group Telecom 45,012 19% 42,934 19% 5% 2% Finance & Investments and Others 44,587 18% 49,549 21% -10% -7% Total Revenue 240,663 100% 232,644 100% 3% 3% EBITDA (2) Ports and Related Services (2) 8,719 16% 7,938 15% 10% 8% Retail 7,974 14% 7,089 14% 12% 8% Infrastructure 15,565 28% 14,679 28% 6% 6% CK Hutchison Group Telecom 13,160 23% 11,732 22% 12% 9% Finance & Investments and Others 10,502 19% 10,763 21% -2% – Total Underlying EBITDA 55,920 100% 52,201 100% 7% 6% One-off items (3) (10,922) – Total Reported EBITDA 44,998 52,201 -14% -15% EBIT (2) Ports and Related Services (2) 6,508 21% 5,785 20% 12% 11% Retail 6,180 20% 5,433 19% 14% 9% Infrastructure 10,161 32% 9,726 34% 4% 4% CK Hutchison Group Telecom 2,518 8% 1,822 6% 38% 32% Finance & Investments and Others 6,042 19% 6,077 21% -1% 1% Total Underlying EBIT 31,409 100% 28,843 100% 9% 8% One-off items (3) (10,922) – Total Reported EBIT 20,487 28,843 -29% -30% Interest Expenses and Other Finance Costs (2) (9,624) (9,828) 2% Profit Before Tax 10,863 19,015 -43% Tax (2) Current tax (4,494) (4,351) -3% Deferred tax (2,330) (1,160) -101% (6,824) (5,511) -24% Profit after tax 4,039 13,504 -70% Non-controlling interests and perpetual capital securities holders’ interests (3,599) (3,312) -9% Reported Profit Attributable to Ordinary Shareholder 440 10,192 -96% -98% Add back: One-off items (3) 10,922 – Underlying Profit Attributable to Ordinary Shareholder 11,362 10,192 11% 9% Note 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, interest expenses and other finance costs, tax, non-controlling interests and perpetual capital securities holders’ interests and profit attributable to ordinary shareholders 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. Note 2: Total revenue, EBITDA, EBIT, interest expenses and other finance costs and tax include the Group’s proportionate share of associated companies and joint ventures’ respective items. Total revenue, EBITDA and EBIT were adjusted to exclude non-controlling interests’ share of results of HPH Trust. No te 3: The HK$10,922 million 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$438 million under Finance & Investments and Others. CKHH 2025 Interim Results Financial Performance Summary Page 11 of 197
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Operations Highlights Ports and Related Services 30 June 2025 HK$ million 30 June 2024 HK$ million Change Local currencies change Total Revenue (1) 23,597 21,594 +9% +10% EBITDA (1) (3) 8,719 7,938 +10% +8% EBIT (1) (3) 6,508 5,785 +12% +11% Throughput (million TEU) 44.0 42.3 +4% Number of berths (2) 295 293 +2 berths Throughput (million TEU) Number of Berths (2) 30 June 2025 30 June 2024 Change 30 June 2025 30 June 2024 Change HPH Trust 11.1 10.4 +7% 52 52 – Mainland China and Other Hong Kong 6.7 6.5 +3% 44 44 – Europe 8.2 8.2 – 67 67 – Asia, Australia and Others 18.0 17.2 +5% 132 130 +2 berths Total 44.0 42.3 +4% 295 293 +2 berths Total Revenue (1) Total EBITDA (1) (3) HK$ million 30 June 2025 30 June 2024 Change Local currencies change 30 June 2025 30 June 2024 Change Local currencies change HPH Trust 1,184 1,130 +5% +5% 644 606 +6% +6% Mainland China and Other Hong Kong 886 869 +2% +3% 315 346 -9% -8% Europe 7,897 6,983 +13% +11% 2,315 1,878 +23% +20% Asia, Australia and Others 11,433 10,814 +6% +9% 4,932 4,371 +13% +12% Corporate costs & other port related services 2,197 1,798 +22% +22% 513 737 -30% -30% Total 23,597 21,594 +9% +10% 8,719 7,938 +10% +8% Note 1: Total Revenue, EBITDA and EBIT have been adjusted to exclude non-controlling interests’ share of results of HPH Trust. Note 2: Based on 300 metres per berth and is computed by dividing the total berth length by 300 metres. Note 3: Under Post-IFRS 16 basis, EBITDA was HK$10,132 million (30 June 2024: HK$9,319 million); EBIT was HK$7,161 million (30 June 2024: HK$6,472 million). CKHH 2025 Interim Results Operations Highlights Page 12 of 197
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Throughput increased by 4% to 44.0 million TEU in the first half of 2025, with 65% and 35% local and transhipment volume respectively (1H 2024: 65% and 35% local and transhipment volume respectively). Overall throughput growth was primarily attributable to HPH Trust, with a 7% year- on-year increase driven by Yantian from growth in export to Europe and higher transhipment volume from new shipping alliances formed in early 2025, despite revenue only increased by 5% as it had a higher portion of transhipment cargoes which had a lower tariff in general, along with 5% volume growth in the Asia, Australia and Others segment, reflecting increased activities in Asia and Middle East due to supply chain reallocation and heightened consumer spending, as well as a 3% increased volume in the Mainland China and Other Hong Kong segment mainly contributed by Shanghai Ports. Throughput in European ports was flat compared to the same period last year, with local volume growth at Rotterdam being offset by reduced transhipment volume at Barcelona. As a result of the increase in volume coupled with higher storage income predominantly in Mexico and European ports, total revenue in the first half of 2025 was 10% higher than the same period last year in local currencies. In local currencies, EBITDA and EBIT increased 8% and 11% respectively. The Asia, Australia and Others segment reported 12% and 14% increase in EBITDA and EBIT respectively in local currencies with strong results in Pakistan and Thailand, together with additional contribution from the new facility at Abu Qir, Egypt. Europe segment increased 20% and 27% in EBITDA and EBIT respectively in local currencies, mainly due to higher storage income. HPH Trust EBITDA and EBIT increased 6% and 16% respectively in local currencies primarily from throughput growth, whereas lower EBITDA in the Mainland China and Other Hong Kong segment, despite revenue growth, was attributed to an insurance recovery income received in the first half of 2024 which did not recur in this half. As at 30 June 2025, this division operates 295 berths. No change in number of berths is expected in the second half of the year as the additional berths at Jazan port in Saudi Arabia (+2 berths) and Laemchabang in Thailand (+1 berth), will be fully offset by the reduction of berths at RAK port in UAE (-2 berths, return of 2 berths according to concession extension agreement) and Basra in Iraq (-1 berth, planned return of concession). Since the implementation of the Equipment Electrification Directive, the Ports division has achieved notable progress in reducing its environmental footprint. By May 2025, Scope 1 and 2 emissions per TEU had declined by almost 4% year-on-year, while diesel consumption per TEU reduced by 5% year-on-year. To support the ongoing decarbonisation efforts, the Ports division is actively procuring renewable energy through Renewable Energy Power Purchase Agreements and Energy Attribute Certificates. Operations in the United Kingdom and Spain are now fully powered by renewable energy, and operations in the Netherlands and Poland are reaching 90% renewable energy usage. As a result, by the end of May 2025, over 40% of total electricity consumed by the Ports division was sourced from renewable energy, providing a significant contribution in achieving the division’s goal in reducing emissions. CKHH 2025 Interim Results Operations Highlights Page 13 of 197
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Retail 30 June 2025 HK$ million 30 June 2024 HK$ million Change Local currencies change Total Revenue 98,840 91,469 +8% +6% EBITDA (1) 7,974 7,089 +12% +8% EBIT (1) 6,180 5,433 +14% +9% Store Numbers 16,935 16,548 +2% Store Numbers Net Change In Store Number Comparable Stores Sales Growth (%) (2) 30 June 2025 (4) 30 June 2024 Change 30 June 2025 30 June 2025 30 June 2024 H&B China 3,630 3,775 -4% (145) -1.0% -18.6% H&B Asia 4,314 4,032 +7% 282 +6.4% +9.2% H&B China & Asia Subtotal 7,944 7,807 +2% 137 +4.6% +0.3% H&B Western Europe 5,861 5,777 +1% 84 +4.6% +6.5% H&B Eastern Europe 2,774 2,573 +8% 201 +4.3% +6.9% H&B Europe Subtotal 8,635 8,350 +3% 285 +4.5% +6.6% H&B Subtotal 16,579 16,157 +3% 422 +4.5% +4.5% Other Retail (3) 356 391 -9% (35) +1.1% -5.6% Total Retail 16,935 16,548 +2% 387 +4.2% +3.3% Note 1: Under Post-IFRS 16 basis, EBITDA was HK$12,771 million (30 June 2024: HK$11,760 million); EBIT was HK$6,805 million (30 June 2024: HK$6,023 million). Note 2: Comparable stores sales growth represents the percentage change in revenue contributed by stores which, as at the first day of the relevant financial year (a) have been operating for over 12 months and (b) have not undergone major resizing within the previous 12 months. N ote 3: Other Retail includes PARKnSHOP, PARKnSHOP Yonghui, Fortress, Watson’s Wine and the manufacturing operations. No te 4: Store number excludes dark stores (5) in H&B China (which commence operation in 2H 2024). On this basis, the store numbers as at 31 December 2024 has been restated to 16,820. The Retail division consists of the AS Watson (“ASW”) group of companies, the world’s largest international Health and Beauty (“H&B”) retailer with a 175 million loyalty member base. ASW operated 12 retail brands with 16,935 stores in 31 markets worldwide as of 30 June 2025. The division achieved a net store growth of 5% in H&B Asia and Europe, driven by strategic expansions in high-performing markets. In H&B China, there was a 4% reduction in store number. This reduction reflects our decision to close stores in low-traffic locations upon lease expiry, aligning with our strategy to optimise the store portfolio. Dark stores (5) in the Mainland has increased from 131 stores at the end of 31 December 2024 to 394 at the end of 30 June 2025 to further enhance the online business capabilities. Comparable stores sales growth for the H&B segment of 4.5% in the first half of 2025 was primarily contributed by the strong comparable stores sales growth of 6.4% in the H&B Asia led by the Philippines, Malaysia and Türkiye, as well as a steady comparable stores sales growth of 4.5% in H&B Europe from positive trading momentum in the UK and the Benelux countries. This was partly offset by H&B China’s slight decrease in comparable store sales of -1.0% due to weak consumer demand. Note 5: Small fulfilment centres solely to fulfil online orders and are strategically located to enable delivery services. CKHH 2025 Interim Results Operations Highlights Page 14 of 197
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Total Revenue Total EBITDA (1) HK$ million 30 June 2025 % 30 June 2024 % Change Local currencies change 30 June 2025 % EBITDA Margin 30 June 2024 % EBITDA Margin Change Local currencies change H&B China 6,666 7% 6,879 8% -3% -2% 117 2% 2% 250 4% 4% -53% -53% H&B Asia 20,493 21% 18,300 20% +12% +11% 1,976 25% 10% 1,729 24% 9% +14% +9% H&B China & Asia Subtotal 27,159 28% 25,179 28% +8% +7% 2,093 27% 8% 1,979 28% 8% +6% +2% H&B Western Europe 46,770 47% 43,228 47% +8% +6% 4,074 51% 9% 3,778 53% 9% +8% +5% H&B Eastern Europe 13,931 14% 12,038 13% +16% +12% 1,770 22% 13% 1,358 19% 11% +30% +25% H&B Europe Subtotal 60,701 61% 55,266 60% +10% +7% 5,844 73% 10% 5,136 72% 9% +14% +10% H&B Subtotal 87,860 89% 80,445 88% +9% +7% 7,937 100% 9% 7,115 100% 9% +12% +8% Other Retail 10,980 11% 11,024 12% – – 37 – – (26) – – +242% +240% Total Retail 98,840 100% 91,469 100% +8% +6% 7,974 100% 8% 7,089 100% 8% +12% +8% H&B loyalty members’ participation & exclusives sales contribution 30 June 2025 30 June 2024 Total loyalty members in H&B segment (million) 174 163 Loyalty members’ sales participation in H&B segment (%) 64% 65% Exclusives sales contribution to total H&B sales (%) 36% 36% The division’s total revenue, EBITDA and EBIT increased by 8%, 12% and 14% in reported currency against the same period last year respectively. Excluding the favourable foreign exchange translation effect, this division’s total revenue, EBITDA and EBIT increased by 6%, 8% and 9% in local currencies respectively. Excluding H&B China, the division’s EBITDA and EBIT both achieved notable growth of 11% in local currencies against the same period last year. The H&B segment, which represented 100% of the division’s EBITDA in the first half of 2025, reported an increase of 7% in total revenue, while EBITDA and EBIT both improved by 8% in local currencies against the same period last year. This was mainly due to favourable performance in European and Asian markets including Poland, the UK, the Benelux countries, the Philippines and Malaysia. The favourable performance across the operations have been partly offset by the adverse performance in the Mainland due to weak consumer demand. The operation is sharpening its value propositions and optimising its store portfolio to improve its profitability. During the first half of the 2025, the division continued contributing positively to the Group’s commitment for more sustainable operations, through continued purchase of renewable energy and expanded sustainable product offerings. The division purchased 629 GWh of renewable energy through Energy Attributes Certificates in selected markets (the Mainland, Hong Kong, the Philippines, Indonesia, Malaysia, Thailand and Türkiye), an increase from 581 GWh in the same period last year. The purchase of renewable energy accounted for almost 100% of the annual electricity consumption in these markets, driving positive reduction progress towards its scope 2 emissions reduction commitment. In addition, the division introduced 11,000 SKUs of sustainable products (exclusive brands and suppliers’ brands) across markets such as the Mainland, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Taiwan and Türkiye, reflecting a 13% increment from the previous year. CKHH 2025 Interim Results Operations Highlights Page 15 of 197
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Infrastructure 30 June 2025 HK$ million 30 June 2024 HK$ million Change Local currencies change Total Revenue 28,627 27,098 +6% +6% EBITDA (1) 15,565 14,679 +6% +6% EBIT (1) 10,161 9,726 +4% +4% CKI Reported Net Profit (under Post-IFRS 16 basis) 4,348 4,311 +1% Note 1: Under Post-IFRS 16 basis, EBITDA was HK$15,734 million (30 June 2024: HK$14,847 million); EBIT was HK$10,193 million (30 June 2024: HK$9,754 million). The infrastructure division comprises the Group’s 75.67% interest in CK Infrastructure Holdings Limited (“CKI”), the largest publicly listed infrastructure company on the SEHK, and the Group’s interests in six co-owned infrastructure assets with CKI, including Northumbrian Water, Park’N Fly, Australian Gas Networks, Dutch Enviro Energy, Wales & West Utilities and UK Rails. CKI CKI operates in Hong Kong, the Mainland, the UK, Continental Europe, Australia, New Zealand, Canada and the United States. CKI announced profit attributable to shareholders under Post-IFRS 16 basis of HK$4,348 million in the first half of 2025, 1% higher against the same period last year, reflecting steady performance of the portfolio of infrastructure assets despite geopolitical and economic uncertainties characterised by shifting political landscapes, a complex interest rate outlook, trade disruptions and inflationary pressures. Profit contribution (2) from Power Assets, a company listed on the SEHK and in which CKI holds a 36.01% interest as of 30 June 2025, was HK$1,095 million in the first half of 2025, an increase of 1% in reported currency, reflecting solid operational performance of international businesses and HK Electric. Profit contribution (2) from the UK portfolio was HK$2,223 million in the first half of 2025, 19% and 17% higher against the same period last year in reported currency and local currency respectively, mainly due to higher contribution from Northumbrian Water resulted from a higher return on higher regulatory capital value due to inflation, good earnings of Northern Gas Networks, Wales & West Utilities and Phoenix Energy reflecting strong operating performance, earnings growth of UK Power Networks with good performance from both regulated and non-regulated businesses, as well as good performance delivered by UK Rails. Profit contribution (2) from Australian portfolio decreased by 8% to HK$793 million in the first half of 2025 in reported currency. In local currency, profit contribution (2) decreased by 5% driven by lower contribution from Energy Developments due to the expiry of various lucrative contracts and lower electricity prices than the highs experienced last year, whereas operating performance of Australian Gas Networks, Multinet Gas Networks and Dampier Bunbury Pipeline continued to be stable. In Continental Europe, profit contribution (2) was HK$432 million in the first half of 2025, an increase of 3% in reported currency but flat in local currency. ista reported strong performance during the first half of 2025, whereas for Dutch Enviro Energy, the phase one reconstruction of its waste-to-energy plant in Rosenburg subsequent to the fire in late 2023 has been completed with all seven incineration lines now in operation, while phase two of the project, which involves a new turbine hall and electricity generation resumption, is on track to be completed early next year. In Canada, profit contribution (2) decreased by 9% and 5% in reported currency and local currency respectively to HK$275 million in the first half of 2025, primarily driven by reduced contribution from Canadian Power due to lower power generation and lower power prices from its units in Alberta, as well as slightly lower revenue of Park’N Fly from weaker price and volume, partly offset by good growth from Reliance Home Comfort and steady results of Canadian Midstream Assets. Profit contribution (2) from New Zealand portfolio of HK$80 million in the first half of 2025 was flat against the same period last year in reported currency. In local currency, profit contribution (2) was 4% higher mainly attributable to strong performance of Enviro NZ, which successfully secured a number of contracts, including the renewal of 10-year waste collection services contract with Taupo District Council. Hong Kong and the Mainland businesses reported a profit contribution (2) of HK$98 million in the first half of 2025, a slight increase of 2% against the same period last year, reflecting stable performance of the transportation projects and the infrastructure materials business. Note 2: Represents share of net profit (before shareholder’s loan interest expense to CKI) under Post-IFRS 16 basis. CKHH 2025 Interim Results Operations Highlights Page 16 of 197
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A number of CKI’s regulated businesses in the UK and Australia have entered or are expected to enter new regulatory regime in 2025 and 2026. Northumbrian Water entered its new regulatory period on 1 April 2025, and alongside several other companies, has sought a redetermination by the Competition and Markets Authority with the appeal result expected to be released by the end of the year. Northumbrian Water proposed approximately £6 billion of expenditure, which includes investments to drive improvements for customers and the environment, over the next five years. Northern Gas and Wales & West Utilities received their draft determinations for the regulatory period from 2026-2031, which outlined higher proposed returns for the upcoming regulatory period. For the Australian portfolio, SA Power Networks entered a new regulatory period from 1 July 2025, with approved higher allowed returns and asset base growth based on the final determination. Victoria Power Networks and United Energy are preparing for the upcoming regulatory resets for the period 2026-2031 and have proposed higher capital investments to support the networks’ growing utilisation rates. Preparations for the 2026-2031 regulatory resets are also being made by Australian Gas Networks’ operations in South Australia and Dampier Bunbury Pipeline. CKI has always been committed to prudent financial management and the risk management approach is conservative with the underlying financial position closely monitored. CKI’s financial strength continues to be solid, with HK$4.7 billion cash on hand and a net debt to net total capital ratio of 10.6% as at 30 June 2025. Taking into account the net debt of the infrastructure investment portfolio, net debt to net total capital ratio on a look-through basis was an industry low of 48.7% as at 30 June 2025. Credit rating from Standard & Poor’s maintained at “A/ Stable”. The Infrastructure division continues to advance key sustainability initiatives, including smart grid solutions, electric vehicle charging infrastructure, and integration systems with renewable energy sources. Clean hydrogen/biomethane projects by the division’s gas networks are also making steady headway in the UK and Australia, alongside Canadian Power’s Okanagan and UK Renewables Energy’s wind farms, UK Power Networks Services’ and the Australian unregulated businesses’ solar portfolios, as well as HK Electric’s gas-fired generation unit. CKHH 2025 Interim Results Operations Highlights Page 17 of 197
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CK Hutchison Group Telecom In million 30 June 2025 HK$ 30 June 2024 HK$ Change Local currencies change 30 June 2025 EURO 30 June 2024 EURO Total Revenue 45,012 42,934 +5% +2% 5,216 5,071 Total Margin 33,528 31,245 +7% +5% 3,884 3,692 Total CACs (6,991) (7,619) +8% (813) (898) Less: Handset revenue 4,708 5,612 -16% 548 661 Total CACs (net of handset revenue) (2,283) (2,007) -14% (265) (237) Operating Expenses (18,085) (17,506) -3% (2,101) (2,068) Loss on UK merger and related impacts (2) (11,360) – N/A (948) – EBITDA (1) 1,800 11,732 -85% -88% 570 1,387 Underlying EBITDA (5) 13,160 11,732 +12% +9% 1,518 1,387 Depreciation & Amortisation (10,642) (9,910) -7% (1,232) (1,172) (LBIT)/EBIT (1) (8,842) 1,822 -585% -591% (662) 215 Underlying EBIT (5) 2,518 1,822 +38% +32% 286 215 33 Group Europe In million 30 June 2025 HK$ 30 June 2024 HK$ Change Local currencies change Total Revenue 41,958 39,935 +5% +3% Total Margin 31,539 29,126 +8% +6% Total CACs (6,793) (7,393) +8% Less: Handset revenue 4,611 5,495 -16% Total CACs (net of handset revenue) (2,182) (1,898) -15% -11% Operating Expenses (17,541) (16,185) -8% -6% Opex as a % of total margin 56% 56% UK merger related impacts (774) – EBITDA (4) 11,042 11,043 – -3% EBITDA Margin % (3) 30% 32% Underlying EBITDA (5) 11,816 11,043 +7% +4% Depreciation & Amortisation (10,079) (9,350) -8% -5% EBIT (4) 963 1,693 -43% -46% Underlying EBIT (5) 1,737 1,693 +3% -1% Note 1: Under Post-IFRS 16 basis, EBITDA was HK$5,903 million (30 June 2024: HK$15,134 million); LBIT was HK$(7,962) million (30 June 2024: HK$2,169 million). Note 2: The HK$11 ,360 million on a Pre-IFRS 16 basis one-time losses included HK$9,915 million of non-cash disposal loss and HK$1,445 million of transactional related expenses. Under Post-IFRS 16 basis, the one-time loss arising from the UK merger and related impacts totalled HK$10,907 million. The one-time losses in HK$ and Euro included different reserves recycling impact arising from the UK merger completion. Note 3: EBITDA margin % represents EBITDA as a percentage of total revenue (excluding handset revenue). Note 4: Under Post-IFRS 16 basis, EBITDA was HK$14,479 million (30 June 2024: HK$14,238 million); EBIT was HK$1,380 million (30 June 2024: HK$2,031 million). Note 5: Underlying result s of CKHGT exclude one-time non-cash loss arising from the UK merger and related impacts of HK$11,360 million under Pre-IFRS 16 basis and HK$10,907 million under Post-IFRS 16 basis. Underlying results of 3 Group Europe exclude one-time UK merger related impacts of HK$774 million under Pre-IFRS 16 and Post-IFRS 16 basis. CKHH 2025 Interim Results Operations Highlights Page 18 of 197
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3 Group Europe’s total revenue and total margin of HK$41,958 million and HK$31,539 million respectively were 3% and 6% higher respectively against the same period last year in local currencies, primarily driven by the growth in net customer service revenue due to an increase in the customer base and upside from revenue initiatives, coupled with share of one month accretive contribution from VodafoneThree. Higher total revenue also reflects higher MVNO and beyond-the-core revenue streams, as well as incremental OpNet wholesale contribution of Wind Tre. Active customer base as at 30 June 2025 of 56.6 million was 40% higher against the same period last year following the completion of the merger of 3 UK and Vodafone UK in end of May 2025. Average monthly customer churn rate of the contract customer base improved to 1.1% for the first half of 2025 (1H 2024: 1.2%). 3 Group Europe’s net ARPU of €12.83 was 1% higher as compared to the first half of 2024, primarily reflecting the accretive contribution from VodafoneThree and revenue initiatives upside on net customer service revenue, partly offset by adverse impact on incoming mobile termination revenue due to reduction in EU-wide interconnection rates and dilutive impact of higher mix of low margin Internet of things (IoT) customers in Ireland. Despite this reduction in mobile termination revenue impact, 3 Group Europe’s net AMPU of €11.84 was 2% higher as the effect was nullified by the corresponding decrease in interconnection cost and therefore had no impact on net AMPU. The 49% share of accretive contribution from the enlarged UK operation resulted in an uplift of UK’s net customer service margin and total margin compared to the same period last year. For the rest of the 3 Group Europe operations, majority of which reported higher net customer service margin driven by the upside from inflation-linked adjustment embedded in customer contracts or annual adjustment executed in 2024 and 2025. In addition, Sweden and Denmark reported higher contract base and growth in second brands, while Ireland continued to increase their active customer base in business and Fixed Wireless Access segments. Italy’s net customer service margin was stable against the same period last year, while Austria reported a decrease primarily due to a lower average customer base from keen competition. Other margin of 3 Group Europe grew year-on-year, reflecting accretive contribution following the UK merger completion, incremental OpNet wholesale revenue as mentioned, as well as expansion of revenue streams beyond traditional core service offerings. Overall, these resulted in a solid 6% total margin growth. 3 Group Europe’s underlying EBITDA was 4% higher year-on-year in local currencies, primarily due to one-month accretive EBITDA contribution from VodafoneThree and margin growth of other operations, partly offset by increased network costs from network expansion. Underlying EBIT was 1% lower against the same period last year in local currencies as depreciation and amortisation increased by 5% in local currencies due to enlarged network asset base across the footprint and share of higher depreciation of VodafoneThree. The higher EBITDA performance from VodafoneThree has been largely offset by higher share of their depreciation and amortisation. The Telecommunication division is progressing on its decarbonisation journey, supported by the successful validation of long-term Science- Based Targets, including the goal to achieve net-zero emissions by 2050. The purchase of renewable electricity supported progress towards its sustainable goal, along with continued investments in network virtualisation, equipment modernisation, and the implementation of advanced energy-saving features, further enhances the mobile network efficiency. To address emissions across the broader value chain, a supplier engagement programme has been launched to collect primary supplier data, identify decarbonisation opportunities and foster collaboration. In addition, 3 Ireland, 3 Sweden and Wind Tre earned national or regional recognitions as the best employers locally in the first half of 2025. 3 Ireland maintained its Gold Status from Investors in Diversity, which is the only telecommunication company in Ireland to hold the accreditation, while Wind Tre renewed its gender equality certification (UNI/PDR 125) in addition to its Equal Pay Certificate. CKHH 2025 Interim Results Operations Highlights Page 19 of 197
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Note 6: 1H 2025 represents five months results of 3 UK for January to May 2025 prior to the formation of VodafoneThree that was completed in end of May 2025 and the Group’s 49% share of one month results of VodafoneThree for June 2025, of which the Group’s share of fixed line business revenue was £50 million. 1H 2024 represents 3 UK 100% standalone results for the first six months of 2024. Note 7: Wind Tre’s results include fixed line business revenue of €509 million (30 June 2024: €523 million) and EBITDA of €78 million (30 June 2024: €102 million). Note 8: EBITDA margin % represents EBITDA as a percentage of total revenue (excluding handset revenue). CKHGT - Results by operations UK Italy Sweden Denmark Austria Ireland 33 Group Europe HTHKH 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 Total registered customer base (million) 28.8 12.0 19.0 19.0 2.8 2.7 1.7 1.6 3.0 3.1 5.2 4.7 60.5 43.1 7.7 5.2 Total active customer base (million) 26.2 10.9 18.0 17.8 2.8 2.7 1.7 1.6 2.7 2.8 5.2 4.7 56.6 40.5 6.1 4.3 Contract customers as a % of the total registered customer base 73% 78% 50% 50% 70% 70% 56% 55% 79% 78% 84% 82% 67% 65% 18% 28% Average monthly churn rate of the total contract registered customer base (%) (11) 1.3% 1.5% 1.2% 1.3% 1.4% 1.2% 1.7% 1.8% 0.5% 0.4% 0.4% 0.4% 1.1% 1.2% 0.9% 1.0% Active contract customers as a % of the total contract registered customer base 100% 99% 97% 96% 100% 100% 100% 100% 99% 99% 100% 100% 99% 98% 100% 100% Active customers as a % of the total registered customer base 91% 91% 95% 94% 100% 100% 100% 100% 91% 90% 100% 100% 94% 94% 80% 82% LTE coverage by population (%) 96% 100% 100% 100% 99% 100% 100% 99% 99% 99% 99% – – 99% 99% Six month data usage per active customer (Gigabyte) 180.3 159.6 142.9 123.1 In million UK (6) GBP Italy (7) EURO Sweden SEK Denmark DKK Austria EURO Ireland EURO 33 Group Europe HK$ HTHKH HK$ Corporate and Others HK$ CKHGT HK$ CKHGT EURO 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 1H 2025 1H 2024 Total Revenue 1,396 1,335 1,924 1,853 3,984 3,980 1,276 1,217 446 478 309 309 41,958 39,935 2,216 2,058 838 941 45,012 42,934 5,216 5,071 % change +5% +4% – +5% -7% – +5% +8% -11% +5% +3% Local currencies change % +3% +2% Total margin 967 879 1,517 1,438 2,874 2,685 1,088 1,032 342 361 245 238 31,539 29,126 1,639 1,653 350 466 33,528 31,245 3,884 3,692 % change +10% +5% +7% +5% -5% +3% +8% -1% -25% +7% +5% Local currencies change % +6% +5% Total CACs (414) (474) (159) (156) (333) (393) (128) (129) (53) (69) (39) (42) (6,793) (7,393) (198) (226) – – (6,991) (7,619) (813) (898) Less: Handset Revenue 280 356 107 110 109 195 36 37 47 60 36 41 4,611 5,495 97 117 – – 4,708 5,612 548 661 Total CACs (net of handset revenue) (134) (118) (52) (46) (224) (198) (92) (92) (6) (9) (3) (1) (2,182) (1,898) (101) (109) – – (2,283) (2,007) (265) (237) Operating Expenses (592) (548) (812) (742) (1,223) (1,226) (620) (583) (174) (183) (158) (159) (17,541) (16,185) (892) (925) 348 (396) (18,085) (17,506) (2,101) (2,068) Opex as a % of total margin 61% 62% 54% 52% 43% 46% 57% 56% 51% 51% 64% 67% 56% 56% 54% 56% N/A N/A 54% 56% 54% 56% Loss on UK merger and related impacts (75) – – – – – – – – – – – (774) – – – (10,586) – (11,360) – (948) – EBITDA/(LBITDA) 166 213 653 650 1,427 1,261 376 357 162 169 84 78 11,042 11,043 646 619 (9,888) 70 1,800 11,732 570 1,387 % change -22% – +13% +5% -4% +8% – +4% -14226% -85% -59% Local currencies change % -3% -88% EBITDA margin % (8) 15% 22% 36% 37% 37% 33% 30% 30% 41% 40% 31% 29% 30% 32% 30% 32% N/A N/A 4% 31% 12% 31% Underlying EBITDA 241 213 653 650 1,427 1,261 376 357 162 169 84 78 11,816 11,043 646 619 698 70 13,160 11,732 1,518 1,387 % change +13% – +13% +5% -4% +8% +7% +4% +897% +12% +9% Local currencies change % +4% +9% Depreciation & Amortisation (275) (243) (561) (552) (910) (900) (280) (281) (94) (85) (68) (67) (10,079) (9,350) (562) (559) (1) (1) (10,642) (9,910) (1,232) (1,172) EBIT/(LBIT) (109) (30) 92 98 517 361 96 76 68 84 16 11 963 1,693 84 60 (9,889) 69 (8,842) 1,822 (662) 215 % change -263% -6% +43% +26% -19% +45% -43% +40% -14432% -585% -408% Local currencies change % -46% -591% Underlying EBIT/(LBIT) (34) (30) 92 98 517 361 96 76 68 84 16 11 1,737 1,693 84 60 697 69 2,518 1,822 286 215 % change -13% -6% +43% +26% -19% +45% +3% +40% +910% +38% +33% Local currencies change % -1% +32% Capex (excluding licence) (230) (282) (298) (707) (873) (110) (152) (97) (112) (39) (43) (6,935) (173) (166) (1) – (7,101) (839) Comparable Depreciation & Amortisation (9) (202) (369) (362) (505) (551) (204) (211) (68) (59) (49) (49) (6,629) (277) (266) (1) (1) (6,896) (815) Comparable Depreciation & Amortisation (9) less Capex (28) 87 64 (202) (322) 94 59 (29) (53) 10 6 (306) 104 100 – 1 (205) (24) Reported EBITDA less Capex (17) 371 352 720 388 266 205 65 57 45 35 4,108 473 453 (9,889) 70 4,631 548 Licence (10) – – – – – – – – (7) – – (59) – – – – (59) (7) HK dollar equivalents of Reported EBITDA and EBIT are summarised as follows: EBITDA-pre IFRS 16 basis (HK$) 1,701 2,109 5,668 5,503 1,114 937 433 405 1,399 1,431 727 658 11,042 11,043 646 619 (9,888) 70 1,800 11,732 €570 € 1,387 EBITDA-post IFRS 16 basis (HK$) 2,184 2,523 8,141 7,823 1,253 1,069 493 462 1,535 1,555 873 806 14,479 14,238 859 826 (9,435) 70 5,903 15,134 €1,043 € 1,788 EBIT-pre IFRS 16 basis (HK$) (1,109) (296) 830 831 405 268 110 86 587 709 140 95 963 1,693 84 60 (9,889) 69 (8,842) 1,822 €(662) € 215 EBIT-post IFRS 16 basis (HK$) (991) (238) 1,071 1,054 415 277 115 91 606 735 164 112 1,380 2,031 94 69 (9,436) 69 (7,962) 2,169 €(564) € 256 Note 9: Comparable Depreciation & Amortisation excludes amortisation of licences, amortisation of capitalised CACs, amortisation of customer relationship intangibles, as well as share of joint venture’s depreciation of Wind Tre and HTHKH. The comparatives were restated to conform with the 2025 definition. Note 10: 1H 2024 licence cost for Austria represents investment for 600 MHz of 26 GHz spectrum acquired in March 2024. No te 11: 1H 2025 key business indicator of UK was calculated based on five months (January to May 2025) of 3 UK’s standalone figures and one-month (June 2025) of VodafoneThree’s figures. CKHH 2025 Interim Results Operations Highlights Page 20 of 197
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Key Business Indicators Registered Customer Base Registered Customers at 30 June 2025 (’000) Registered Customer Growth (%) from 31 December 2024 to 30 June 2025 Registered Customer Growth (%) from 30 June 2024 to 30 June 2025 Non-contract Contract Total Non-contract Contract Total Non-contract Contract Total United Kingdom (12)(13) 7,644 21,121 28,765 +251% +125% +149% +184% +127% +140% Italy (12) 9,477 9,508 18,985 -1% +2% +1% -1% – – Sweden 847 1,956 2,803 +3% +1% +2% +7% +4% +5% Denmark 764 956 1,720 +3% +4% +4% +5% +6% +6% Austria 642 2,352 2,994 -4% -2% -2% -7% -2% -3% Ireland 841 4,388 5,229 – +7% +6% -1% +14% +12% 3 Group Europe Total 20,215 40,281 60,496 +37% +44% +41% +32% +45% +40% HTHKH 6,311 1,399 7,710 +46% -2% +34% +67% -3% +48% Active (14) Customer Base Active Customers at 30 June 2025 (’000) Active Customer Growth (%) from 31 December 2024 to 30 June 2025 Active Customer Growth (%) from 30 June 2024 to 30 June 2025 Non-contract Contract Total Non-contract Contract Total Non-contract Contract Total United Kingdom (12)(13) 5,059 21,121 26,180 +238% +127% +142% +202% +129% +140% Italy (12) 8,785 9,186 17,971 – +2% +1% +1% +1% +1% Sweden 842 1,956 2,798 +3% +1% +2% +7% +4% +5% Denmark 764 956 1,720 +3% +4% +4% +5% +6% +6% Austria 377 2,338 2,715 -2% -2% -2% -3% -2% -2% Ireland 841 4,388 5,229 – +7% +6% -1% +14% +12% 3 Group Europe Total 16,668 39,945 56,613 +27% +45% +39% +27% +46% +40% HTHKH 4,735 1,399 6,134 +47% -2% +32% +67% -3% +44% Note 12: In addition to the above, VodafoneThree has 1.6 million fixed line customers and Wind Tre has 2.7 million fixed line customers. Note 13: United Kingdom’s customer base as at 30 June 2025 was based on 100% of VodafoneThree. Note 14: An active customer is one that generated revenue from an outgoing call, incoming call or data/content service in the preceding three months. CK Hutchison Group Telecom (continued) CKHH 2025 Interim Results Operations Highlights Page 21 of 197
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12-month Trailing Average Revenue per Active User (“ARPU”) (15) to 30 June 2025 Non-contract Contract Blended Total % Variance compared to 30 June 2024 United Kingdom (16) £6.75 £17.45 £15.89 -10% Italy €9.06 €12.79 €10.96 -1% Sweden SEK120.82 SEK228.07 SEK196.23 -3% Denmark DKK94.78 DKK135.91 DKK117.56 -1% Austria €9.19 €23.23 €21.28 -1% Ireland €14.49 €7.73 €8.88 -9% 3 Group Europe Average (17) €9.56 €16.29 €14.14 -4% HTHKH HK$14.17 HK$183.28 HK$64.80 -16% 12-month Trailing Net Average Revenue per Active User (“Net ARPU”) (18) to 30 June 2025 Non-contract Contract Blended Total % Variance compared to 30 June 2024 United Kingdom (16) £6.75 £15.36 £14.11 +5% Italy €9.06 €12.02 €10.57 -1% Sweden SEK120.82 SEK208.87 SEK182.73 -1% Denmark DKK94.78 DKK129.41 DKK113.96 – Austria €9.19 €18.86 €17.51 -2% Ireland €14.49 €6.10 €7.53 -8% 3 Group Europe Average (17) €9.56 €14.36 €12.83 +1% HTHKH HK$14.17 HK$170.85 HK$61.08 -14% 12-month Trailing Net Average Margin per Active User (“Net AMPU”) (19) to 30 June 2025 Non-contract Contract Blended Total % Variance compared to 30 June 2024 United Kingdom (16) £5.96 £14.06 £12.88 +6% Italy €8.49 €11.35 €9.95 – Sweden SEK106.13 SEK186.86 SEK162.90 – Denmark DKK82.39 DKK112.49 DKK99.06 – Austria €8.52 €17.79 €16.49 – Ireland €13.53 €5.69 €7.02 -7% 3 Group Europe Average (17) €8.82 €13.26 €11.84 +2% HTHKH HK$10.68 HK$147.63 HK$51.68 -17% Note 15: ARPU equals total monthly revenue, including incoming mobile termination revenue and contributions for a handset/device in contract bundled plans, divided by the average number of active customers during the period. Note 16: United Kingdom’s ARPU, net ARPU and net AMPU were calculated based on eleven months (July 2024 to May 2025) of 3 UK’s standalone figures and one month (June 2025) of VodafoneThree’s figures. Note 17: 3 Group Europe ARPU, net ARPU and net AMPU were calculated based on 100% of 3 UK’s standalone figures from July 2024 to May 2025 and 49% contribution from VodafoneThree for June 2025. Note 18: Net ARPU equals total monthly revenue, including incoming mobile termination revenue but excluding contributions for a handset/device in contract bundled plans, divided by the average number of active customers during the period. Note 19: Net AMPU equals total monthly revenue, including incoming mobile termination revenue but excluding contributions for a handset/device in contract bundled plans, less direct variable costs (including interconnection charges and roaming costs) (i.e. net customer service margin), divided by the average number of active customers during the period. CKHH 2025 Interim Results Operations Highlights Page 22 of 197
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United Kingdom The merger of 3 UK and Vodafone UK was completed on 31 May 2025, forming the combined business, VodafoneThree, a 49% associated company of the Group. Upon the completion, VodafoneThree became the largest mobile network operator in the United Kingdom with 28.8 million customers. The integration of the two businesses has commenced and has already started delivering network improvements and customer experience enhancement through spectrum sharing. VodafoneThree plans to invest £11 billion over the next 10 years to create one of Europe’s most advanced 5G networks for a vastly superior mobile experience to its customers and businesses. The results of the telecommunications business in the United Kingdom for the six months ended 30 June 2025 represented five months results of 3 UK and the Group’s 49% share of one month results of VodafoneThree. Total margin increased by 10% driven by the accretive contribution from VodafoneThree and wholesale growth pre-merger. Underlying EBITDA increased by 13% in local currency driven by higher total margin, partly offset by the share of higher costs of VodafoneThree and higher network costs of 3 UK from the expanded network. Underlying LBIT was 13% adverse in local currency against the same period last year, mainly due to increased depreciation from the larger asset base of 3 UK pre-merger, partly offset by the underlying EBITDA growth for the first five months of the year. One month accretive EBITDA contribution of VodafoneThree was largely offset by share of the higher depreciation. Italy Wind Tre’s total margin increased by 5% in local currency compared to the same period last year, mainly driven by higher other margin from incremental OpNet wholesale business, as well as growth in new revenue streams such as cybersecurity, energy and insurance products. EBITDA was flat against the first half of 2024 as the increase in total margin was mostly offset by higher operating expenses from increased network asset base. EBIT decreased by 6% in local currency compared to the first half of 2024 mainly due to incremental depreciation from OpNet network assets. Sweden Sweden, where the Group has a 60% interest, reported 7% increase in total margin compared to the same period last year primarily from 5% customer base growth. EBITDA and EBIT grew by 13% and 43% respectively in local currency driven by a foreign currency gain of SEK114 million on the translation of an intercompany loan and strong growth in total margin, partly offset by higher customer acquisition costs. Sweden’s 5G population coverage further increased by 10%-pts from end of 2024 to reach over 85% by the first half of 2025. Denmark The operation in Denmark, where the Group has a 60% interest, reported 5% growth in total margin primarily driven by customer base growth. EBITDA and EBIT increased by 5% and 26% respectively in local currency mainly due to higher total margin, partly offset by higher operating costs from enlarged network base and higher selling and distribution costs. Denmark has reached 90% FDD coverage and 70% TDD coverage in first half of 2025. Austria 3 Austria’s EBITDA decreased by 4% in local currency compared to the same period last year, primarily driven by reduced total margin from intense competition in both core mobile business and MVNO business, partly offset by lower operating expenses from lower electricity costs and stringent cost control measures to combat the reducing revenues. EBIT in local currency decreased by 19%, driven by lower EBITDA as mentioned and higher depreciation resulting from the enlarged asset base amid ongoing 5G network rollout. During the period, Austria enhanced its 5G coverage, with FDD and TDD coverage reaching over 95% and 75% respectively. Ireland Total margin grew by 3% against the same period last year driven by the customer base growth, partly offset by the lower net AMPU from the dilutive impact of higher mix of low margin IoT customers despite the upside from revenue initiatives. EBITDA and EBIT in local currency increased by 8% and 45% respectively compared to the same period last year reflecting better total margin with stable operating expenses year-on-year. In the first half of 2025, 3 Ireland has reached over 90% 5G coverage. Hutchison Telecommunications Hong Kong Holdings Total margin decreased by 1% against the same period last year mainly due to lower interest income as a result of lower bank deposit interest rate as well as reduced local service revenue primarily from competitive market dynamics, partly offset by increase in roaming services revenue driven by the persistent growth in international travel. EBITDA of HK$646 million was 4% higher as compared to the same period last year, primarily attributable to effective and disciplined cost management. EBIT of HK$84 million was 40% higher as compared to the first half of 2024 as a result of the aforesaid improvement in EBITDA with broadly stable depreciation and amortisation expenses. CK Hutchison Group Telecom (continued) CKHH 2025 Interim Results Operations Highlights Page 23 of 197
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Finance & Investments and Others 30 June 2025 HK$ million 30 June 2024 HK$ million Change Local currencies change Total Revenue 44,587 49,549 -10% -7% EBITDA (1) 10,940 10,763 +2% +4% - Underlying 10,502 10,763 -2% – - One-off item 438 – EBIT (1) 6,480 6,077 +7% +8% - Underlying 6,042 6,077 -1% +1% - One-off item 438 – Note 1: Under Post-IFRS 16 basis, EBITDA was HK$12,443 million (30 June 2024: HK$12,362 million); EBIT was HK$6,964 million (30 June 2024: HK$6,537 million). Finance & Investments and Others segment includes returns earned on the Group’s holdings of cash and liquid investments, Hutchison Whampoa (China) Limited, listed associate TOM Group, the Marionnaud businesses, listed associate CK Life Sciences Group, Indosat Ooredoo Hutchison (“IOH”), operations in Vietnam and Sri Lanka, listed associate Cenovus Energy and Hutchison Telecommunications (Australia) Limited (“HTAL”), which has a 25.05% interest in TPG Telecom Limited, a listed company in Australia. HTAL was delisted from Australian Securities Exchange on 25 July 2025 and will become a wholly-owned subsidiary of the Group. In the first half of 2025, EBITDA and EBIT in this segment included the transactional intercompany credit of HK$438 million. Excluding the one-off item, underlying EBITDA and EBIT were relatively stable in local currencies as compared to the first half of 2024, primarily due to a one-time gain on the partial disposal of a non-core asset of HUTCHMED, largely offset by share of lower profit of the energy business and IOH. The Group’s share of Cenovus Energy’s Post-IFRS 16 EBITDA, EBIT and net earnings were HK$4,716 million, HK$2,304 million and HK$1,636 million, a decrease of 14%, 26% and 23% compared to the same period last year respectively, mainly due to decline in commodity prices and major maintenance and turnaround activities, partly offset by higher downstream throughput during the period. IOH’s reported Post-IFRS 16 EBITDA and net profit were IDR12,855 billion and IDR2,335 billion, decrease of 4% and 15% respectively compared to the same period last year, mainly due to challenging business environment. As at 30 June 2025, the Group’s holdings of cash and liquid investments totalled HK$137,268 million. Further information on the Group’s treasury function can be found in the “Group Capital Resources and Liquidity” section of this results announcement. Interest Expense, Finance Costs and Tax The Group’s consolidated interest expenses and other finance costs for the six months ended 30 June 2025, including its share of associated companies’ and joint ventures’ interest expenses, amortisation of finance costs and after deducting interest capitalised on assets under development, amounted to HK$9,624 million, decreased by 2% when compared to the same period last year, mainly due to lower average loan balance and lower effective interest rate of consolidated debt, partly offset by higher share of interest expenses of the Group’s associates and joint ventures. The Group’s weighted average cost of debt for the six months ended 30 June 2025 was 20 basis points lower at 3.4% (30 June 2024: 3.6%). The Group recorded current and deferred tax charges of HK$6,824 million in the six months ended 30 June 2025, an increase of 24% compared to the same period last year. Excluding the impact of the UK merger, the Group has generated higher underlying profit before tax during the first half and resulted in increased tax charges in the first half of 2025. CKHH 2025 Interim Results Operations Highlights Page 24 of 197
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Report on Review of Interim Financial Statements To the Board of Directors of CK Hutchison Holdings Limited (incorporated in the Cayman Islands with limited liability) Introduction We have reviewed the interim financial statements set out on pages 26 to 190, which comprises the condensed consolidated statement of financial position of CK Hutchison Holdings Limited (the “Company”) and its subsidiaries (together, the “Group”) as at 30 June 2025 and the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the six-month period then ended, and selected explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial statements to be in compliance with the relevant provisions thereof and International Accounting Standard 34 “Interim Financial Reporting”. The directors of the Company are responsible for the preparation and presentation of these interim financial statements in accordance with International Accounting Standard 34 “Interim Financial Reporting”. Our responsibility is to express a conclusion on these interim financial statements based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements of the Group are not prepared, in all material respects, in accordance with International Accounting Standard 34 “Interim Financial Reporting”. PricewaterhouseCoopers Certified Public Accountants Hong Kong, 14 August 2025 CKHH 2025 Interim Results Independent Auditor’s Report Page 25 of 197
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Condensed Consolidated Income Statement for the six months ended 30 June 2025 Unaudited Unaudited Unaudited Unaudited 2025 # 2025 2024 2023 US$ million Note HK$ million HK$ million HK$ million 17,837 Revenue 5 139,130 136,451 133,377 (6,875) Cost of inventories sold 7 (53,622) (50,823) (51,121) (2,786) Staff costs (21,727) (20,539) (19,445) (786) Expensed customer acquisition and retention costs (6,128) (7,471) (7,005) (2,546) Depreciation and amortisation 7 (19,862) (19,826) (19,675) (4,416) Other expenses and losses 7 (34,443) (24,351) (24,323) 114 Other income and gains 7 887 466 2,134 Share of profits less losses of: 606 Associated companies 4,726 3,908 4,080 657 Joint ventures 5,121 4,633 3,720 1,805 14,082 22,448 21,742 (810) Interest expenses and other finance costs 8 (6,321) (6,630) (5,687) 995 Profit before tax 7,761 15,818 16,055 (249) Current tax charge 9 (1,944) (2,063) (1,573) (175) Deferred tax credit (charge) 9 (1,362) (198) 198 571 Profit after tax 4,455 13,557 14,680 Profit attributable to non-controlling interests and (462) holders of perpetual capital securities (3,603) (3,352) (3,138) 109 Profit attributable to ordinary shareholders 852 10,205 11,542 Earnings per share for profit attributable to ordinary US 2.9 cents shareholders 10 HK$ 0.22 HK$ 2.66 HK$ 3.01 Details of distribution paid to the holders of perpetual capital securities and interim dividend payable to the ordinary shareholders are set out in note 11. # See note 41. CKHH 2025 Interim Results Financial Statements Page 26 of 197
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Condensed Consolidated Statement of Comprehensive Income for the six months ended 30 June 2025 Unaudited Unaudited Unaudited Unaudited 2025 # 2025 2024 2023 US$ million HK$ million HK$ million HK$ million 571 Profit after tax 4,455 13,557 14,680 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through 28 other comprehensive income 219 (377) 605 (13) Remeasurement of defined benefit obligations (105) 498 101 4 Share of other comprehensive income (losses) of associated companies 31 (116) (539) 25 Share of other comprehensive income (losses) of joint ventures 196 (910) 94 Tax relating to components of other comprehensive income (losses) that (5) will not be reclassified to profit or loss (38) (112) (36) 39 303 (1,017) 225 Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through 14 other comprehensive income 113 19 (4) 3,048 Exchange gains (losses) on translation of foreign operations 23,774 (4,376) 8,941 (831) Reserves reclassified to profit or loss (6,480) - - (2) Losses on cash flow hedges (17) (27) (1,145) (474) Gains (losses) on net investment hedges (3,700) 635 (1,378) - Reclassification adjustments for hedging gains included in profit or loss - - (1,735) 596 Share of other comprehensive income (losses) of associated companies 4,649 (2,141) 2,587 1,175 Share of other comprehensive income (losses) of joint ventures 9,159 (2,336) 4,181 Tax relating to components of other comprehensive income (losses) that - may be reclassified to profit or loss 1 2 (1) 3,526 27,499 (8,224) 11,446 3,565 Other comprehensive income (losses), net of tax 27,802 (9,241) 11,671 4,136 Total comprehensive income 32,257 4,316 26,351 Total comprehensive income attributable to non-controlling interests (877) and holders of perpetual capital securities (6,840) (2,112) (4,324) 3,259 Total comprehensive income attributable to ordinary shareholders 25,417 2,204 22,027 # See note 41. CKHH 2025 Interim Results Financial Statements Page 27 of 197
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Condensed Consolidated Statement of Financial Position at 30 June 2025 Unaudited Unaudited Unaudited Unaudited Unaudited 30 June 30 June 31 December 31 December 1 January 2025 # 2025 2024 2023 2023 US$ million Note HK$ million HK$ million HK$ million HK$ million Non-current assets 12,359 Fixed assets 12 96,399 111,777 119,826 112,650 7,763 Right-of-use assets 13 60,547 57,589 61,198 59,337 6,273 Telecommunications licences 14 48,930 63,869 64,264 60,689 9,963 Brand names and other rights 15 77,712 79,241 83,396 83,694 35,116 Goodwill 16 273,906 267,325 271,136 268,008 23,735 Associated companies 17 185,129 139,855 143,638 140,711 21,587 Interests in joint ventures 18 168,380 154,208 156,337 148,561 948 Deferred tax assets 19 7,390 18,140 21,074 18,509 981 Liquid funds and other listed investments 20 7,655 8,142 15,786 16,103 1,641 Other non-current assets 21 12,803 20,203 19,862 15,900 120,366 938,851 920,349 956,517 924,162 Current assets 16,617 Cash and cash equivalents 22 129,613 121,303 127,323 138,085 3,491 Inventories 27,228 24,923 24,473 23,283 5,371 Trade receivables and other current assets 23 41,894 45,967 50,590 56,811 25,479 198,735 192,193 202,386 218,179 - Assets classified as held for sale - - - 6,096 25,479 198,735 192,193 202,386 224,275 Current liabilities 2,444 Bank and other debts 24 19,061 30,956 58,324 70,130 - Interest bearing loan from a non-controlling shareholder 27 - 1,874 - - 209 Current tax liabilities 1,632 3,368 4,166 4,001 1,799 Lease liabilities 13 14,036 12,142 13,616 12,128 10,624 Trade payables and other current liabilities 25 82,861 82,645 86,419 89,129 15,076 117,590 130,985 162,525 175,388 - Liabilities directly associated with assets classified as held for sale - - - 1,127 15,076 117,590 130,985 162,525 176,515 10,403 Net current assets 81,145 61,208 39,861 47,760 130,769 Total assets less current liabilities 1,019,996 981,557 996,378 971,922 Non-current liabilities 30,243 Bank and other debts 24 235,894 225,436 213,598 214,196 504 Interest bearing loans from non-controlling shareholders 27 3,932 1,597 3,245 2,567 6,940 Lease liabilities 13 54,131 52,377 54,307 53,931 2,217 Deferred tax liabilities 19 17,293 17,974 19,572 19,290 421 Pension obligations 28 3,289 3,197 3,536 2,730 3,794 Other non-current liabilities 29 29,592 28,384 31,571 31,899 44,119 344,131 328,965 325,829 324,613 86,650 Net assets 675,865 652,592 670,549 647,309 # See note 41. CKHH 2025 Interim Results Financial Statements Page 28 of 197
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Condensed Consolidated Statement of Financial Position at 30 June 2025 Unaudited Unaudited Unaudited Unaudited Unaudited 30 June 30 June 31 December 31 December 1 January 2025 # 2025 2024 2023 2023 US$ million Note HK$ million HK$ million HK$ million HK$ million Capital and reserves 491 Share capital 30 (a) 3,830 3,830 3,830 3,830 31,150 Share premium 30 (a) 242,972 242,972 242,972 242,972 39,486 Reserves 31 307,988 287,913 297,233 276,711 71,127 Total ordinary shareholders’ funds 554,790 534,715 544,035 523,513 - Perpetual capital securities 30 (b) - - 4,566 4,561 15,523 Non-controlling interests 121,075 117,877 121,948 119,235 86,650 Total equity 675,865 652,592 670,549 647,309 # See note 41. CKHH 2025 Interim Results Financial Statements Page 29 of 197
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Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2025 Unaudited Share capital Total ordinary Non- Unaudited Total and share shareholders’ controlling Total equity # premium * Reserves @ funds interests equity US$ million HK$ million HK$ million HK$ million HK$ million HK$ million 83,666 At 1 January 2025 246,802 287,913 534,715 117,877 652,592 571 Profit for the period - 852 852 3,603 4,455 Other comprehensive income (losses) Changes in fair value of equity instruments at 28 fair value through other comprehensive income - 195 195 24 219 Changes in fair value of debt instruments at fair 14 value through other comprehensive income - 113 113 - 113 (13) Remeasurement of defined benefit obligations - (79) (79) (26) (105) 3,048 Exchange gains on translation of foreign operations - 22,188 22,188 1,586 23,774 (831) Reserves reclassified to profit or loss - (6,480) (6,480) - (6,480) (2) Losses on cash flow hedges - (6) (6) (11) (17) (474) Losses on net investment hedges - (2,800) (2,800) (900) (3,700) Share of other comprehensive income of 600 associated companies - 4,278 4,278 402 4,680 Share of other comprehensive income of 1,200 joint ventures - 7,185 7,185 2,170 9,355 Tax relating to components of other (5) comprehensive income (losses) - (29) (29) (8) (37) 3,565 Other comprehensive income, net of tax - 24,565 24,565 3,237 27,802 4,136 Total comprehensive income - 25,417 25,417 6,840 32,257 Transactions with owners in their capacity as owners: (743) Dividends paid relating to 2024 - (5,799) (5,799) - (5,799) (387) Dividends paid to non-controlling interests - - - (3,018) (3,018) 7 Equity contribution from non-controlling interests - - - 56 56 (29) Relating to purchase of non-controlling interests - 457 457 (680) (223) (1,152) - (5,342) (5,342) (3,642) (8,984) 86,650 At 30 June 2025 246,802 307,988 554,790 121,075 675,865 # See note 41. * See note 30(a). @ See note 31. Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 30 of 197
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Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2025 Holders of Unaudited Share capital Total ordinary perpetual Non- Unaudited Total and share shareholders’ capital controlling Total equity # premium * Reserves @ funds securities interests equity US$ million HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million 85,968 At 1 January 2024 246,802 297,233 544,035 4,566 121,948 670,549 1,738 Profit for the period - 10,205 10,205 71 3,281 13,557 Other comprehensive income (losses) Changes in fair value of equity instruments at (48) fair value through other comprehensive income - (377) (377) - - (377) Changes in fair value of debt instruments at fair 2 value through other comprehensive income - 19 19 - - 19 64 Remeasurement of defined benefit obligations - 397 397 - 101 498 (561) Exchange losses on translation of foreign operations - (3,678) (3,678) - (698) (4,376) (3) Losses on cash flow hedges - (24) (24) - (3) (27) 81 Gains on net investment hedges - 481 481 - 154 635 Share of other comprehensive income (losses) (290) of associated companies - (2,112) (2,112) - (145) (2,257) Share of other comprehensive income (losses) (416) of joint ventures - (2,621) (2,621) - (625) (3,246) Tax relating to components of other comprehensive (14) income (losses) - (86) (86) - (24) (110) (1,185) Other comprehensive income (losses), net of tax - (8,001) (8,001) - (1,240) (9,241) 553 Total comprehensive income - 2,204 2,204 71 2,041 4,316 Transactions with owners in their capacity as owners: (871) Dividends paid relating to 2023 - (6,798) (6,798) - - (6,798) (763) Dividends paid to non-controlling interests - - - - (5,954) (5,954) (21) Distributions paid on perpetual capital securities - - - (162) - (162) (573) Redemption of perpetual capital securities - - - (4,475) - (4,475) 3 Equity contribution from non-controlling interests - - - - 27 27 (70) Relating to disposal of subsidiary companies - - - - (543) (543) (2,295) - (6,798) (6,798) (4,637) (6,470) (17,905) 84,226 At 30 June 2024 246,802 292,639 539,441 - 117,519 656,960 # See note 41. * See note 30(a). @ See note 31. Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 31 of 197
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Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2025 Holders of Unaudited Share capital Total ordinary perpetual Non- Unaudited Total and share shareholders’ capital controlling Total equity # premium * Reserves @ funds securities interests equity US$ million HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million 82,988 At 1 January 2023 246,802 276,711 523,513 4,561 119,235 647,309 1,882 Profit for the period - 11,542 11,542 89 3,049 14,680 Other comprehensive income (losses) Changes in fair value of equity instruments at 78 fair value through other comprehensive income - 605 605 - - 605 Changes in fair value of debt instruments at fair (1) value through other comprehensive income - (4) (4) - - (4) 13 Remeasurement of defined benefit obligations - 85 85 - 16 101 1,146 Exchange gains on translation of foreign operations - 8,655 8,655 - 286 8,941 (147) Losses on cash flow hedges - (1,132) (1,132) - (13) (1,145) (177) Losses on net investment hedges - (1,095) (1,095) - (283) (1,378) Reclassification adjustments for hedging gains (222) included in profit or loss - (1,735) (1,735) - - (1,735) Share of other comprehensive income of 263 associated companies - 1,822 1,822 - 226 2,048 Share of other comprehensive income of 548 joint ventures - 3,314 3,314 - 961 4,275 Tax relating to components of other (5) comprehensive income (losses) - (30) (30) - (7) (37) 1,496 Other comprehensive income, net of tax - 10,485 10,485 - 1,186 11,671 3,378 Total comprehensive income - 22,027 22,027 89 4,235 26,351 (4) Impact of hyperinflation - (21) (21) - (5) (26) Transactions with owners in their capacity as owners: (1,024) Dividends paid relating to 2022 - (7,989) (7,989) - - (7,989) (390) Dividends paid to non-controlling interests - - - - (3,052) (3,052) (21) Distributions paid on perpetual capital securities - - - (167) - (167) Recognition of put option liabilities arising from (19) business combinations - (148) (148) - - (148) 1 Relating to purchase of a subsidiary company - - - - 8 8 - Relating to purchase of non-controlling interests - (34) (34) - 34 - (1,457) - (8,192) (8,192) (167) (3,015) (11,374) 84,909 At 30 June 2023 246,802 290,546 537,348 4,483 120,455 662,286 # See note 41. * See note 30(a). @ See note 31. Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 32 of 197
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Condensed Consolidated Statement of Cash Flows for the six months ended 30 June 2025 Unaudited Unaudited Unaudited Unaudited 2025 # 2025 2024 2023 US$ million Note HK$ million HK$ million HK$ million Operating activities Cash generated from operating activities before interest expenses 4,733 and other finance costs, tax paid and changes in working capital 32 (a) 36,918 37,035 35,553 (802) Interest expenses and other finance costs paid (net of capitalisation) (6,252) (6,567) (5,621) (358) Tax paid (2,792) (2,274) (1,760) 3,573 Funds from operations (before principal elements of lease payments) 27,874 28,194 28,172 396 Changes in working capital 32 (b) 3,087 (5,229) (6,981) 3,969 Net cash from operating activities 30,961 22,965 21,191 Investing activities (990) Purchase of fixed assets 12 (7,719) (8,817) (9,746) - Additions to telecommunications licences 14 - (60) (1,009) (111) Additions to brand names and other rights 15 (869) (751) (649) - Purchase of subsidiary companies, net of cash acquired 32 (c) - (10) (79) (8) Additions to unlisted investments (59) (22) (39) 41 Repayments of loans from associated companies and joint ventures 317 350 2,241 (63) Purchase of and advances to associated companies and joint ventures (492) (1,604) (95) 3 Proceeds from disposal of fixed assets 21 115 19 1,910 Proceeds from disposal of subsidiary companies, net of cash disposed 32 (d) 14,902 333 2,563 Proceeds from partial disposal / disposal of associated companies 119 and joint ventures 926 179 723 2 Proceeds from disposal of other unlisted investments 14 262 74 Cash flows from (used in) investing activities before additions to / 903 disposal of liquid funds and other listed investments 7,041 (10,025) (5,997) 119 Disposal of liquid funds and other listed investments 926 3,297 15 (12) Additions to liquid funds and other listed investments (88) (75) (65) 1,010 Cash flows from (used in) investing activities 7,879 (6,803) (6,047) 4,979 Net cash inflow before financing activities 38,840 16,162 15,144 Financing activities 3,312 New borrowings 32 (e) 25,832 32,341 38,122 (5,066) Repayment of borrowings 32 (e) (39,516) (19,817) (44,012) (1,020) Principal elements of lease payments 32 (e) (7,956) (7,370) (7,500) (1) Net loans to non-controlling shareholders 32 (e) (8) (21) (30) Issue of equity securities by subsidiary companies to 7 non-controlling shareholders 56 27 - (29) Payments to acquire additional interests in subsidiary companies (223) - - - Redemption of perpetual capital securities 30 (b) - (4,180) - (743) Dividends paid to ordinary shareholders (5,799) (6,798) (7,989) (374) Dividends paid to non-controlling interests (2,916) (5,906) (2,913) - Distributions paid on perpetual capital securities - (162) (167) (3,914) Cash flows used in financing activities (30,530) (11,886) (24,489) 1,065 Increase (decrease) in cash and cash equivalents 8,310 4,276 (9,345) 15,552 Cash and cash equivalents at 1 January 121,303 127,323 138,085 16,617 Cash and cash equivalents at 30 June 129,613 131,599 128,740 # See note 41. CKHH 2025 Interim Results Financial Statements Page 33 of 197
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Condensed Consolidated Statement of Cash Flows for the six months ended 30 June 2025 Unaudited Unaudited Unaudited Unaudited 2025 # 2025 2024 2023 US$ million Note HK$ million HK$ million HK$ million Analysis of cash, liquid funds and other listed investments at 30 June 16,617 Cash and cash equivalents, as above 129,613 131,599 128,740 981 Liquid funds and other listed investments 20 7,655 11,477 17,995 17,598 Total cash, liquid funds and other listed investments 137,268 143,076 146,735 Total principal amount of bank and other debts and unamortised 32,883 fair value adjustments arising from acquisitions 24 256,490 279,743 284,766 504 Interest bearing loans from non-controlling shareholders 27 3,932 3,141 2,549 15,789 Net debt 123,154 139,808 140,580 (504) Interest bearing loans from non-controlling shareholders (3,932) (3,141) (2,549) Net debt (excluding interest bearing loans from non-controlling 15,285 shareholders) 119,222 136,667 138,031 # See note 41. CKHH 2025 Interim Results Financial Statements Page 34 of 197
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Notes to the Financial Statements 1 General information CK Hutchison Holdings Limited (the “Company”) is incorporated in the Cayman Islands with limited liability. Its shares are listed on The Stock Exchange of Hong Kong Limited. The interim condensed consolidated financial statements of the Company and its subsidiaries (collectively referred to as the “Group”) for the six months ended 30 June 2025 (the “2025 Interim Financial Statements”) were approved for issuance by the Company’s Board of Directors on 14 August 2025. These financial statements are accompanied by supplementary disclosures included in the Company’s 2025 interim results announcement and 2025 Interim Report. These sections, comprising the Chairman’s Statement, Operations Highlights, and Group Capital Resources and Other Information, provide additional discussions on the Group’s business performance during the reporting period. They also detail significant corporate developments since 31 December 2024, and provide an overview of the Group’s capital resources, liquidity position, and financial profile. 2 Basis of preparation The 2025 Interim Financial Statements represent the Company’s first interim financial statements prepared in accordance with IAS 34 “Interim Financial Reporting”, following the adoption of IFRS Accounting Standards (“IFRS”) effective 1 January 2025 (as detailed in note 4). Previously, the Company’s interim financial statements for periods up to and including the six months ended 30 June 2024 were prepared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”). In preparing the 2025 Interim Financial Statements, the Company has applied the same optional exemptions under IFRS 1 “First-time Adoption of International Financial Reporting Standards” (“IFRS 1”), issued by International Accounting Standards Board (the “IASB”), as will be applied in the consolidated financial statements as at and for the year ending 31 December 2025 (the “2025 Annual Financial Statements”), as detailed in Note 4. The accounting policies adopted are consistent with those expected to be applied in the 2025 Annual Financial Statements. A summary of material accounting policies is provided in note 44. These interim financial statements have been prepared on a historical cost basis, except for plan assets of defined benefit plans, investment properties, and certain financial assets and liabilities (including derivative instruments), which are measured at fair value. These interim financial statements have been prepared on a going concern basis. Management has assessed the Group’s ability to continue as a going concern by evaluating projected cash flows, liquidity position and available funding sources. Based on this assessment, Management has concluded that the Group has adequate resources to meet its financial obligations and continue operations for the foreseeable future. Accordingly, the use of the going concern basis of accounting is considered appropriate as of the date of authorisation of these interim financial statements. These interim financial statements are regarded as “Condensed” as per IAS 34 as they do not include all of the information and disclosures required for a complete set of financial statements prepared in accordance with IFRS. They should be read in conjunction with the Company’s last annual consolidated financial statements as at and for the year ended 31 December 2024. The accompanying financial statements and notes are unaudited. The results presented in the 2025 Interim Financial Statements should not be regarded as necessarily indicative of results that may be expected for the full financial year. 3 Use of judgements, assumptions and estimates In preparing the 2025 Interim Financial Statements, the Group has made accounting-related estimates based on judgements and assumptions about current and, where applicable, future economic and market conditions that management considers relevant and reasonable. It is reasonably possible that actual outcomes could differ from those underlying the estimates, which may result in material changes to the carrying amounts of assets and liabilities in future periods. Accordingly, the Group’s accounting estimates, judgements, and assumptions may evolve over time in response to changes in external conditions. The estimation methodologies applied reflect the conditions and circumstances existing as at the respective reporting dates and for the periods presented. Further information on significant accounting judgements, estimates and assumptions is provided in note 43. CKHH 2025 Interim Results Financial Statements Page 35 of 197
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4 Adoption of IFRS Accounting Standards Historically, the Company prepared its consolidated financial statements in accordance with HKFRS Accounting Standards (“HKFRS” or “Previous GAAP”) issued by the HKICPA. While HKFRS are fully converged with IFRS issued by IASB, the Company’s consolidated financial statements for periods up to and including the year ended 31 December 2024 prepared under HKFRS do not constitute IFRS financial statements. As the globally accepted accounting standards, IFRS are used in over 140 jurisdictions. The transition to IFRS delivers significant strategic and operational advantages: 1) Enhanced investor confidence • Increases credibility with institutional investors. • Enables direct performance comparisons with global peers listed in IFRS-based jurisdictions. 2) Alignment with future growth strategies • Supports mergers and acquisitions due diligence and post-transaction integration in IFRS-based jurisdictions. • Ensures readiness for potential mergers and acquisitions activities, listings, partnerships, or acquisitions in market requiring IFRS. 3) Improved capital markets access • Aligns with reporting requirements in major financial markets (EU, UK, Australia, Canada). • Eliminates reconciliation requirements for cross-border investors. • Strengthens position for future debt and equity transactions. 4) Operational efficiency • Reduces compliance costs by eliminating dual reporting. • Streamlines financial consolidation across multinational operations under a single, unified set of accounting standards. 5) Global consistency & comparability • Enhances transparency through alignment with global reporting standards used in over 140 jurisdictions. • Facilitates benchmarking against international peers. • Simplifies financial analysis for global investors. Effective from 1 January 2025, the Company has adopted IFRS as its financial reporting framework. The standards applied comprise: • International Financial Reporting Standards; • International Accounting Standards; • IFRIC Interpretations; and • SIC Interpretations. This transition to IFRS underscores the Company’s commitment to global best practices and enhances its position as an internationally integrated organisation. The 2025 Annual Financial Statements will be prepared in accordance with IFRS, applying the guidance of IFRS 1. These annual consolidated financial statements will be the Company’s first IFRS financial statements and will include an explicit and unreserved statement of compliance with IFRS, two years (2023 and 2024) of full comparative information under IFRS, along with an opening consolidated statement of financial position at 1 January 2023. In line with guidance of IFRS 1, the Company’s date of transition to IFRS is accordingly 1 January 2023. The presentation of three consecutive years of financial information under IFRS ensures compliance with IFRS reporting requirements, provides meaningful comparable financial information, while positioning the Company for future debt and equity capital transaction as well as strategic initiatives and opportunities requiring IFRS reporting. CKHH 2025 Interim Results Financial Statements Page 36 of 197
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4 Adoption of IFRS Accounting Standards (continued) The adoption has been applied retrospectively in accordance with IFRS 1, with the Company’s date of transition to IFRS being 1 January 2023. This note and note 45 explain the Company’s transition from HKFRS to IFRS, and the principal changes made. (a) IFRS 1 provides first-time adopters with certain optional exemptions from the retrospective application of IFRS: (i) Business combinations In accordance with the exemption guidance under IFRS 1, the business combination requirements of IFRS were not applied retrospectively to transactions that occurred prior to the Company’s transition date to IFRS. As a result, the carrying amounts of assets and liabilities recognised in business combinations under Previous GAAP were treated as their deemed cost at the respective acquisition dates. This approach was also consistently applied to past acquisitions of equity-accounted investments. In line with IFRS 1 requirements, the carrying amount of goodwill reported under Previous GAAP was adopted in the Company’s opening consolidated statement of financial position prepared under IFRS. There was no impairment recognised on goodwill upon transition to IFRS at the date of transition. (ii) Share-based payment transactions In accordance with the exemption guidance under IFRS 1, the requirements of IFRS for share-based payment transactions were not applied retrospectively to: • Equity instruments granted on or before 7 November 2002; and • Equity instruments granted after 7 November 2002 that vested before the later of the Company’s transition date to IFRS and 1 January 2005. This approach was also consistently applied to liabilities arising from cash-settled share-based payment transactions that were settled prior to 1 January 2023 which also exempt from retrospective application. (iii) Foreign currency translation In accordance with the exemption guidance under IFRS 1, the Company has elected not to recognise cumulative translation differences on foreign operations that existed at the date of transition to IFRS. Under this exemption: • The cumulative currency translation losses at 1 January 2023 (the date of transition to IFRS) of HK$40,203 million for all foreign operations are deemed to be zero. • Any gain or loss arising from the subsequent disposal of a foreign operation will exclude translation differences accumulated prior to the transition date and will only include those arising post-transition. CKHH 2025 Interim Results Financial Statements Page 37 of 197
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4 Adoption of IFRS Accounting Standards (continued) (a) IFRS 1 provides first-time adopters with certain optional exemptions from the retrospective application of IFRS (continued): (iii) Foreign currency translation (continued) As a result of applying this exemption, cumulative translation losses at 1 January 2023 (the date of transition) of HK$40,203 million were reclassified from the Exchange Reserve to Retained Profit. This reclassification represents a transfer between reserve accounts within “Total Ordinary Shareholders’ Funds” and “Total Equity”. It does not affect the overall amount of “Total Ordinary Shareholders’ Funds” or “Total Equity”. Due to the elimination of the opening balance of cumulative currency translation differences at the transition date: • 2025 Interim Period Profit and Loss Impact: The loss on disposal of 3UK (see Note 7(d)) is HK$11,340 million lower under IFRS. Consequently, profit for the current period is HK$11,340 million higher and other comprehensive income is HK$11,340 million lower. Under Previous GAAP, HK$11,340 million pre-transition cumulative translation losses (out of HK$40,203 million previously disclosed) would have been recycled from other comprehensive income and charged to the income statement for the current period. • 2024 Interim Period Profit and Loss Impact: No impact on the comparative 2024 interim period as no disposal involving pre-transition cumulative translation differences. • 2023 Interim Period Profit and Loss Impact: Other expenses and losses are HK$250 million lower and other income and gains are HK$87 million higher under IFRS. Consequently, profit for the 2023 interim period is HK$337 million higher and other comprehensive income is HK$337 million lower, while profit attributable to non-controlling interests and holders of perpetual capital securities is HK$3 million higher and profit attributable to ordinary shareholders is HK$334 million higher under IFRS. Under Previous GAAP, HK$334 million of pre-transition cumulative translation losses (out of HK$40,203 million previously disclosed) would have been recycled from other comprehensive income and charged to the income statement for the 2023 comparative period. These differences reflect the application of the IFRS 1 exemption, which prohibits recycling of pre-transition cumulative translation differences to profit or loss upon disposal of foreign operations. Save as discussed above, there would have been no material differences had the 2025 Interim Financial Statements been prepared under Previous GAAP. (b) Estimates The estimates made by the Group as at the date of transition to IFRS, as well as those made at comparative reporting dates and for the periods presented, are consistent with the estimates previously made under Previous GAAP for the same dates and periods. No retrospective adjustments to estimates were required in accordance with IFRS 1. (c) Gap year between local and Group transition date The Group adopted IFRS after several subsidiaries had already applied IFRS. In these cases, the Group measured the assets and liabilities of these subsidiaries at the same carrying amounts as in the subsidiaries’ local financial statements, subject to applicable consolidation adjustments. CKHH 2025 Interim Results Financial Statements Page 38 of 197
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4 Adoption of IFRS Accounting Standards (continued) (d) Reconciliations between amounts reported under IFRS and Previous GAAP Upon transitioning to IFRS, the Group did not recognise any new assets or liabilities that were not previously recorded under Previous GAAP, nor did it exclude any amounts that had been recognised in the consolidated statement of financial position at the transition date or during the periods presented. Refer to note 45 for reconciliations between amounts reported under IFRS and Previous GAAP: Total Equity • Total Equity at 1 January 2023, 30 June 2023, 31 December 2023, 30 June 2024 and 31 December 2024 Opening Consolidated Statement of Financial Position • Consolidated Statement of Financial Position at 1 January 2023 Year ended 31 December 2024 • Consolidated Income Statement for the year ended 31 December 2024 • Consolidated Statement of Comprehensive Income for the year ended 31 December 2024 • Consolidated Statement of Financial Position at 31 December 2024 • Consolidated Statement of Changes in Equity for the year ended 31 December 2024 • Consolidated Statement of Cash Flows for the year ended 31 December 2024 Year ended 31 December 2023 • Consolidated Income Statement for the year ended 31 December 2023 • Consolidated Statement of Comprehensive Income for the year ended 31 December 2023 • Consolidated Statement of Financial Position at 31 December 2023 • Consolidated Statement of Changes in Equity for the year ended 31 December 2023 • Consolidated Statement of Cash Flows for the year ended 31 December 2023 Six months ended 30 June 2024 • Consolidated Income Statement for the six months ended 30 June 2024 • Consolidated Statement of Comprehensive Income for the six months ended 30 June 2024 • Consolidated Statement of Financial Position at 30 June 2024 • Consolidated Statement of Changes in Equity for the six months ended 30 June 2024 • Consolidated Statement of Cash Flows for the six months ended 30 June 2024 Six months ended 30 June 2023 • Consolidated Income Statement for the six months ended 30 June 2023 • Consolidated Statement of Comprehensive Income for the six months ended 30 June 2023 • Consolidated Statement of Financial Position at 30 June 2023 • Consolidated Statement of Changes in Equity for the six months ended 30 June 2023 • Consolidated Statement of Cash Flows for the six months ended 30 June 2023 Note to Financial Statements - Consolidated Reserves • Consolidated Reserves at 31 December 2024 • Consolidated Reserves at 31 December 2023 • Consolidated Reserves at 30 June 2024 • Consolidated Reserves at 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 39 of 197
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5 Revenue (a) An analysis of revenue of the Company and subsidiary companies is as follows: 2025 2024 2023 HK$ million HK$ million HK$ million Sale of goods 80,827 78,143 77,828 Revenue from services 55,166 54,038 51,389 Interest 3,039 4,202 4,089 Dividend income 98 68 71 139,130 136,451 133,377 (b) (i) By segments * Revenue recognised at recognised from other a point in time over time Subtotal sources Total HK$ million HK$ million HK$ million HK$ million HK$ million Ports and Related Services - 17,814 17,814 100 17,914 Retail 70,347 15 70,362 - 70,362 Infrastructure 1,658 - 1,658 706 2,364 Telecommunications CK Hutchison Group Telecom 3 Group Europe 4,807 33,544 38,351 6 38,357 Hutchison Telecommunications Hong Kong Holdings 394 1,822 2,216 - 2,216 Corporate and Others - 338 338 436 774 5,201 35,704 40,905 442 41,347 Finance & Investments and Others 4,669 539 5,208 1,935 7,143 81,875 54,072 135,947 3,183 139,130 Revenue recognised at recognised from other a point in time over time Subtotal sources Total HK$ million HK$ million HK$ million HK$ million HK$ million Ports and Related Services - 16,572 16,572 84 16,656 Retail 65,667 19 65,686 - 65,686 Infrastructure 1,724 - 1,724 1,055 2,779 Telecommunications CK Hutchison Group Telecom 3 Group Europe 6,258 33,666 39,924 6 39,930 Hutchison Telecommunications Hong Kong Holdings 298 1,760 2,058 - 2,058 Corporate and Others 22 304 326 558 884 6,578 35,730 42,308 564 42,872 Finance & Investments and Others 5,292 550 5,842 2,616 8,458 79,261 52,871 132,132 4,319 136,451 * See note 6 for operating segment information. Six months ended 30 June The following table presents revenue from contracts with customers within the scope of IFRS 15, disaggregated by revenue category for the Company and its subsidiaries: Six months ended 30 June 2024 Revenue from contracts with customers Revenue from contracts with customers Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 40 of 197
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5 Revenue (continued) (b) (i) By segments * (continued) Revenue recognised at recognised from other a point in time over time Subtotal sources Total HK$ million HK$ million HK$ million HK$ million HK$ million Ports and Related Services - 14,708 14,708 81 14,789 Retail 65,136 29 65,165 - 65,165 Infrastructure 1,966 - 1,966 1,564 3,530 Telecommunications CK Hutchison Group Telecom 3 Group Europe 5,718 33,023 38,741 6 38,747 Hutchison Telecommunications Hong Kong Holdings 535 1,793 2,328 - 2,328 Corporate and Others 13 120 133 488 621 6,266 34,936 41,202 494 41,696 Finance & Investments and Others 5,574 555 6,129 2,068 8,197 78,942 50,228 129,170 4,207 133,377 (ii) By geographical locations * Revenue recognised at recognised from other a point in time over time Subtotal sources Total HK$ million HK$ million HK$ million HK$ million HK$ million Hong Kong 11,670 2,126 13,796 146 13,942 Mainland China 8,281 113 8,394 4 8,398 The People’s Republic of China 19,951 2,239 22,190 150 22,340 Europe 37,540 41,034 78,574 704 79,278 Canada - - - 42 42 Asia, Australia and Others 19,715 10,260 29,975 352 30,327 57,255 51,294 108,549 1,098 109,647 77,206 53,533 130,739 1,248 131,987 Finance & Investments and Others 4,669 539 5,208 1,935 7,143 81,875 54,072 135,947 3,183 139,130 * See note 6 for operating segment information. Revenue from contracts with customers Six months ended 30 June 2025 The following table presents revenue from contracts with customers within the scope of IFRS 15, disaggregated by revenue category for the Company and its subsidiaries (continued): Six months ended 30 June 2023 Revenue from contracts with customers CKHH 2025 Interim Results Financial Statements Page 41 of 197
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5 Revenue (continued) (b) (ii) By geographical locations * (continued) Revenue recognised at recognised from other a point in time over time Subtotal sources Total HK$ million HK$ million HK$ million HK$ million HK$ million Hong Kong 11,822 2,067 13,889 127 14,016 Mainland China 8,360 113 8,473 9 8,482 The People’s Republic of China 20,182 2,180 22,362 136 22,498 Europe 36,367 40,307 76,674 865 77,539 Canada - - - 102 102 Asia, Australia and Others 17,420 9,834 27,254 600 27,854 53,787 50,141 103,928 1,567 105,495 73,969 52,321 126,290 1,703 127,993 Finance & Investments and Others 5,292 550 5,842 2,616 8,458 79,261 52,871 132,132 4,319 136,451 Revenue recognised at recognised from other a point in time over time Subtotal sources Total HK$ million HK$ million HK$ million HK$ million HK$ million Hong Kong 12,519 2,110 14,629 139 14,768 Mainland China 10,744 115 10,859 14 10,873 The People’s Republic of China 23,263 2,225 25,488 153 25,641 Europe 33,655 39,209 72,864 800 73,664 Canada - - - 119 119 Asia, Australia and Others 16,450 8,239 24,689 1,067 25,756 50,105 47,448 97,553 1,986 99,539 73,368 49,673 123,041 2,139 125,180 Finance & Investments and Others 5,574 555 6,129 2,068 8,197 78,942 50,228 129,170 4,207 133,377 * See note 6 for operating segment information. Revenue from contracts with customers Revenue from contracts with customers Six months ended 30 June 2024 Six months ended 30 June 2023 The following table presents revenue from contracts with customers within the scope of IFRS 15, disaggregated by revenue category for the Company and its subsidiaries (continued): CKHH 2025 Interim Results Financial Statements Page 42 of 197
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5 Revenue (continued) (c) Contract balances related to contracts with customers within the scope of IFRS 15 Under IFRS 15, a contract asset or a contract liability is generated when either party to the contract performs, depending on the relationship between the entity’s performance and the customer’s payment. When an entity satisfies a performance obligation by transferring a promised goods or service, the entity has earned a right to consideration from the customer and, therefore, has a contract asset. When the customer performs first, for example, by prepaying its promised consideration, the entity has a contract liability. Generally, contract assets may represent conditional or unconditional rights to consideration. The right would be conditional, for example, when an entity is required first to satisfy another performance obligation in the contract before it is entitled to payment from the customer. If an entity has an unconditional right to receive consideration from the customer, the contract asset is classified as and accounted for as a receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. The following table provides information about trade receivables, contract assets and contract liabilities from contracts with customers within the scope of IFRS 15. 30 June 31 December 31 December I January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Trade receivables, which are included in “Trade receivables and other current assets” (see note 23) 14,993 15,327 16,297 14,945 Trade receivables, which are included in “Assets classified as held for sale” - - - 21 Contract assets (see notes 21 and 23) 3,638 7,121 7,580 6,314 Contract liabilities (see note 25) (5,203) (5,500) (5,948) (6,027) Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days. For the six months ended 30 June 2025, HK$312 million (30 June 2024: HK$353 million; 30 June 2023: HK$300 million) was recognised in the consolidated income statement as provision for expected credit losses on trade receivables. Contract assets primarily relate to the Group’s rights to consideration for delivered services and devices but not billed at the reporting date. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. For the six months ended 30 June 2025, HK$363 million (30 June 2024: HK$553 million; 30 June 2023: HK$387 million) was recognised in the consolidated income statement as provision for expected credit losses on contract assets. Contract liabilities primarily relate to the Group’s unfulfilled performance obligations for which consideration has been received at the reporting date. On fulfilment of its obligations, the contract liability is recognised in revenue in the period when the performance obligations are fulfilled. HK$2,990 million (30 June 2024: HK$4,149 million; 30 June 2023: HK$2,574 million) was recognised as revenue for the six months ended 30 June 2025 that was included in the contract liability balance at the beginning of the year. CKHH 2025 Interim Results Financial Statements Page 43 of 197
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6 Operating segment information (a) Description of segments and basis of presentation of segment information For management purposes, the Group is organised into four core businesses: • Ports and Related Services • Retail • Infrastructure • Telecommunications The Group’s most senior executive management (the Chief Operating Decision Maker as defined in IFRS 8) monitors the operating results of the core businesses separately for the purpose of making decisions about resource allocation and performance assessment. Segment information sets out in this note is organised into these four core businesses, as follows: Ports and Related Services: • Comprises: 80% interest in the Hutchison Ports group and its 30.07% interest in Hutchison Port Holdings Trust (“HPH Trust”), a listed associate. • Includes the Group’s effective shares of HPH Trust’s results (net of non-controlling interests). Retail: • Operates as AS Watson (“ASW”), the world’s largest international health and beauty retailer. • Key metrics (as at 30 June 2025): 175 million loyalty members, 16,935 stores across 31 markets and 12 retail brands. Infrastructure: • Includes 75.67% interest in CK Infrastructure Holdings Limited (“CKI”), a listed subsidiary. • Includes six co-owned infrastructure investments with CKI: Northumbrian Water, Park’N Fly, Australian Gas Networks, Dutch Enviro Energy, Wales & West Utilities and UK Rails. Telecommunications: • Comprises: CK Hutchison Group Telecom Holdings (consolidating 3 Group Europe operations) and a 66.09% interest in Hutchison Telecommunications Hong Kong Holdings, a listed subsidiary. In addition, “Finance & Investments and Others” is presented in the segment information below to reconcile to the totals included in the Group’s consolidated income statement and consolidated statement of financial position. This category covers the activities of other areas of the Group that are not presented separately and includes a 97.92% interest in the Australian Securities Exchange listed Hutchison Telecommunications (Australia) Limited (“HTAL”), which has a 25.05% attributable interest in a listed associated company TPG Telecom Limited (“TPG”), Hutchison Asia Telecommunications, Hutchison Whampoa (China), Hutchison E-Commerce, the Marionnaud business, listed associated companies HUTCHMED (China) Limited (“HUTCHMED”), TOM Group, CK Life Sciences Int’l., (Holdings) Inc. and Cenovus Energy Inc. (“Cenovus Energy”), corporate head office operations and the returns earned on the Group’s holdings of cash and liquid investments. Segment presentation basis: • Financial statements prepared under IFRS 16 (“Post-IFRS 16 basis”). • Management reporting maintained on the precedent lease accounting standard International Accounting Standard 17 “Leases” (“Pre-IFRS 16 basis”). • Segment information presented on Pre-IFRS 16 basis (with reconciliations to Post-IFRS 16 basis). • Reconciliations provided in section (c) of this note. Unless otherwise stated: • “Company and Subsidiaries” column represents holding company and subsidiaries. • “Associates and JV” column reflects the Group’s share of associates and joint ventures. CKHH 2025 Interim Results Financial Statements Page 44 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (i) An analysis of revenue by segments Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 17,914 5,683 23,597 10% Retail 70,362 28,478 98,840 41% Infrastructure 2,364 26,263 28,627 12% Telecommunications CK Hutchison Group Telecom 3 Group Europe 38,357 3,601 41,958 18% Hutchison Telecommunications Hong Kong Holdings 2,216 - 2,216 1% Corporate and Others 774 64 838 - 41,347 3,665 45,012 19% Finance & Investments and Others 7,143 37,444 44,587 18% 139,130 101,533 240,663 100% Portion attributable to: Non-controlling interests of HPH Trust - 640 640 Divesture of infrastructure investments - 413 413 139,130 102,586 241,716 IFRS 16 impact - - - 139,130 102,586 241,716 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 16,656 4,938 21,594 9% Retail 65,686 25,783 91,469 39% Infrastructure 2,779 24,319 27,098 12% Telecommunications CK Hutchison Group Telecom 3 Group Europe 39,930 5 39,935 18% Hutchison Telecommunications Hong Kong Holdings 2,058 - 2,058 1% Corporate and Others 884 57 941 - 42,872 62 42,934 19% Finance & Investments and Others 8,458 41,091 49,549 21% 136,451 96,193 232,644 100% Portion attributable to: Non-controlling interests of HPH Trust - 587 587 Divesture of infrastructure investments - 424 424 136,451 97,204 233,655 IFRS 16 impact - - - 136,451 97,204 233,655 Six months ended 30 June 2025 Six months ended 30 June 2024 Revenue Revenue CKHH 2025 Interim Results Financial Statements Page 45 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (i) An analysis of revenue by segments (continued) Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 14,789 5,074 19,863 9% Retail 65,165 23,454 88,619 40% Infrastructure 3,530 24,010 27,540 12% Telecommunications CK Hutchison Group Telecom 3 Group Europe 38,747 4 38,751 17% Hutchison Telecommunications Hong Kong Holdings 2,328 - 2,328 1% Corporate and Others 621 61 682 - 41,696 65 41,761 18% Finance & Investments and Others 8,197 37,887 46,084 21% 133,377 90,490 223,867 100% Portion attributable to: Non-controlling interests of HPH Trust - 556 556 Divesture of infrastructure investments - 357 357 133,377 91,403 224,780 IFRS 16 impact - - - 133,377 91,403 224,780 Six months ended 30 June 2023 Revenue CKHH 2025 Interim Results Financial Statements Page 46 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) The Group uses two measures of segment results, EBITDA (see note 6(b)(xiv)) and EBIT (see note 6(b)(xv)). Analyses of segment results by EBITDA and EBIT are set out in (ii), (iii), (ix), (x) and (xiii) below. (ii) An analysis of EBITDA by segments Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 6,684 2,035 8,719 19% Retail 5,402 2,572 7,974 18% Infrastructure 767 14,798 15,565 35% Telecommunications CK Hutchison Group Telecom 3 Group Europe 10,073 969 11,042 25% Hutchison Telecommunications Hong Kong Holdings 621 25 646 1% Corporate and Others (9,881) (7) (9,888) -22% 813 987 1,800 4% Finance & Investments and Others 1,384 9,556 10,940 24% EBITDA 15,050 29,948 44,998 100% Portion attributable to: Non-controlling interests of HPH Trust - 450 450 EBITDA ^ 15,050 ^ 30,398 ^ 45,448 ^ Depreciation and amortisation (12,734) (11,909) (24,643) Interest expenses and other finance costs (4,830) (4,794) (9,624) Current tax (1,944) (2,550) (4,494) Deferred tax (1,414) (916) (2,330) Non-controlling interests (3,640) (277) (3,917) (9,512) 9,952 440 IFRS 16 impact EBITDA ^ 9,047 ^ 2,938 ^ 11,985 ^ Depreciation and amortisation (7,128) (2,183) (9,311) Interest expenses and other finance costs (1,491) (927) (2,418) Current tax - - - Deferred tax 52 67 119 Non-controlling interests 37 - 37 (8,995) 9,847 852 ^ Reconciliation to Post-IFRS 16 basis EBITDA: Pre-IFRS 16 basis EBITDA per above 15,050 30,398 45,448 IFRS 16 impact per above 9,047 2,938 11,985 Post-IFRS 16 basis EBITDA (see note 32(a)(i)) 24,097 33,336 57,433 EBITDA (LBITDA) (xiv) Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 47 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (ii) An analysis of EBITDA by segments (continued) Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 6,183 1,755 7,938 15% Retail 4,874 2,215 7,089 14% Infrastructure 1,144 13,535 14,679 28% Telecommunications CK Hutchison Group Telecom 3 Group Europe 10,828 215 11,043 21% Hutchison Telecommunications Hong Kong Holdings 591 28 619 1% Corporate and Others 83 (13) 70 - 11,502 230 11,732 22% Finance & Investments and Others 1,512 9,251 10,763 21% EBITDA 25,215 26,986 52,201 100% Portion attributable to: Non-controlling interests of HPH Trust - 412 412 EBITDA ^ 25,215 ^ 27,398 ^ 52,613 ^ Depreciation and amortisation (12,772) (10,721) (23,493) Interest expenses and other finance costs (5,342) (4,486) (9,828) Current tax (2,063) (2,288) (4,351) Deferred tax (197) (963) (1,160) Non-controlling interests (3,332) (257) (3,589) 1,509 8,683 10,192 IFRS 16 impact EBITDA ^ 8,518 ^ 2,703 ^ 11,221 ^ Depreciation and amortisation (7,054) (2,055) (9,109) Interest expenses and other finance costs (1,288) (817) (2,105) Current tax - - - Deferred tax (1) 27 26 Non-controlling interests (20) - (20) 1,664 8,541 10,205 ^ Reconciliation to Post-IFRS 16 basis EBITDA: Pre-IFRS 16 basis EBITDA per above 25,215 27,398 52,613 IFRS 16 impact per above 8,518 2,703 11,221 Post-IFRS 16 basis EBITDA (see note 32(a)(i)) 33,733 30,101 63,834 EBITDA (LBITDA) (xiv) Six months ended 30 June 2024 CKHH 2025 Interim Results Financial Statements Page 48 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (ii) An analysis of EBITDA by segments (continued) Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 4,690 1,832 6,522 13% Retail 5,210 1,846 7,056 14% Infrastructure 1,738 12,943 14,681 29% Telecommunications CK Hutchison Group Telecom 3 Group Europe 10,104 156 10,260 21% Hutchison Telecommunications Hong Kong Holdings 583 31 614 1% Corporate and Others (529) (2) (531) -1% 10,158 185 10,343 21% Finance & Investments and Others 3,372 8,296 11,668 23% EBITDA 25,168 25,102 50,270 100% Portion attributable to: Non-controlling interests of HPH Trust - 378 378 EBITDA ^ 25,168 ^ 25,480 ^ 50,648 ^ Depreciation and amortisation (12,650) (9,952) (22,602) Interest expenses and other finance costs (4,462) (5,295) (9,757) Current tax (1,573) (1,719) (3,292) Deferred tax 189 (458) (269) Non-controlling interests (3,151) (234) (3,385) 3,521 7,822 11,343 IFRS 16 impact EBITDA ^ 8,449 ^ 2,769 ^ 11,218 ^ Depreciation and amortisation (7,025) (2,047) (9,072) Interest expenses and other finance costs (1,225) (753) (1,978) Current tax - - - Deferred tax 9 9 18 Non-controlling interests 13 - 13 3,742 7,800 11,542 ^ Reconciliation to Post-IFRS 16 basis EBITDA: Pre-IFRS 16 basis EBITDA per above 25,168 25,480 50,648 IFRS 16 impact per above 8,449 2,769 11,218 Post-IFRS 16 basis EBITDA (see note 32(a)(i)) 33,617 28,249 61,866 EBITDA (LBITDA) (xiv) Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 49 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (iii) An analysis of EBIT by segments Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 5,217 1,291 6,508 32% Retail 4,112 2,068 6,180 30% Infrastructure 628 9,533 10,161 50% Telecommunications CK Hutchison Group Telecom 3 Group Europe EBITDA before the following non-cash items: 10,073 969 11,042 Depreciation (5,464) (890) (6,354) Amortisation of licence fees, customer acquisition and retention costs and other rights (3,725) - (3,725) EBIT - 3 Group Europe 884 79 963 5% Hutchison Telecommunications Hong Kong Holdings 78 6 84 - Corporate and Others (9,882) (7) (9,889) -48% (8,920) 78 (8,842) -43% Finance & Investments and Others 1,279 5,201 6,480 31% EBIT 2,316 18,171 20,487 100% Portion attributable to: Non-controlling interests of HPH Trust - 318 318 EBIT ^ 2,316 ^ 18,489 ^ 20,805 ^ Interest expenses and other finance costs (4,830) (4,794) (9,624) Current tax (1,944) (2,550) (4,494) Deferred tax (1,414) (916) (2,330) Non-controlling interests (3,640) (277) (3,917) (9,512) 9,952 440 IFRS 16 impact EBIT ^ 1,919 ^ 755 ^ 2,674 ^ Interest expenses and other finance costs (1,491) (927) (2,418) Current tax - - - Deferred tax 52 67 119 Non-controlling interests 37 - 37 (8,995) 9,847 852 ^ Reconciliation to Post-IFRS 16 basis EBIT: Pre-IFRS 16 basis EBIT per above 2,316 18,489 20,805 IFRS 16 impact per above 1,919 755 2,674 Post-IFRS 16 basis EBIT 4,235 19,244 23,479 Six months ended 30 June 2025 EBIT (LBIT) (xv) CKHH 2025 Interim Results Financial Statements Page 50 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (iii) An analysis of EBIT by segments (continued) Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 4,748 1,037 5,785 20% Retail 3,640 1,793 5,433 19% Infrastructure 1,011 8,715 9,726 34% Telecommunications CK Hutchison Group Telecom 3 Group Europe EBITDA before the following non-cash items: 10,828 215 11,043 Depreciation (5,552) (181) (5,733) Amortisation of licence fees, customer acquisition and retention costs and other rights (3,617) - (3,617) EBIT - 3 Group Europe 1,659 34 1,693 6% Hutchison Telecommunications Hong Kong Holdings 53 7 60 - Corporate and Others 82 (13) 69 - 1,794 28 1,822 6% Finance & Investments and Others 1,250 4,827 6,077 21% EBIT 12,443 16,400 28,843 100% Portion attributable to: Non-controlling interests of HPH Trust - 277 277 EBIT ^ 12,443 ^ 16,677 ^ 29,120 ^ Interest expenses and other finance costs (5,342) (4,486) (9,828) Current tax (2,063) (2,288) (4,351) Deferred tax (197) (963) (1,160) Non-controlling interests (3,332) (257) (3,589) 1,509 8,683 10,192 IFRS 16 impact EBIT ^ 1,464 ^ 648 ^ 2,112 ^ Interest expenses and other finance costs (1,288) (817) (2,105) Current tax - - - Deferred tax (1) 27 26 Non-controlling interests (20) - (20) 1,664 8,541 10,205 ^ Reconciliation to Post-IFRS 16 basis EBIT: Pre-IFRS 16 basis EBIT per above 12,443 16,677 29,120 IFRS 16 impact per above 1,464 648 2,112 Post-IFRS 16 basis EBIT 13,907 17,325 31,232 EBIT (LBIT) (xv) Six months ended 30 June 2024 CKHH 2025 Interim Results Financial Statements Page 51 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (iii) An analysis of EBIT by segments (continued) Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Ports and Related Services 3,258 1,092 4,350 16% Retail 3,928 1,492 5,420 20% Infrastructure 1,594 8,447 10,041 36% Telecommunications CK Hutchison Group Telecom 3 Group Europe EBITDA before the following non-cash items: 10,104 156 10,260 Depreciation (5,441) (128) (5,569) Amortisation of licence fees, customer acquisition and retention costs and other rights (3,548) - (3,548) EBIT - 3 Group Europe 1,115 28 1,143 4% Hutchison Telecommunications Hong Kong Holdings 41 8 49 - Corporate and Others (531) (2) (533) -2% 625 34 659 2% Finance & Investments and Others 3,113 4,221 7,334 26% EBIT 12,518 15,286 27,804 100% Portion attributable to: Non-controlling interests of HPH Trust - 242 242 EBIT ^ 12,518 ^ 15,528 ^ 28,046 ^ Interest expenses and other finance costs (4,462) (5,295) (9,757) Current tax (1,573) (1,719) (3,292) Deferred tax 189 (458) (269) Non-controlling interests (3,151) (234) (3,385) 3,521 7,822 11,343 IFRS 16 impact EBIT ^ 1,424 ^ 722 ^ 2,146 ^ Interest expenses and other finance costs (1,225) (753) (1,978) Current tax - - - Deferred tax 9 9 18 Non-controlling interests 13 - 13 3,742 7,800 11,542 ^ Reconciliation to Post-IFRS 16 basis EBIT: Pre-IFRS 16 basis EBIT per above 12,518 15,528 28,046 IFRS 16 impact per above 1,424 722 2,146 Post-IFRS 16 basis EBIT 13,942 16,250 30,192 EBIT (LBIT) (xv) Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 52 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (iv) An analysis of depreciation and amortisation expenses by segments Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million Ports and Related Services 1,467 744 2,211 Retail 1,290 504 1,794 Infrastructure 139 5,265 5,404 Telecommunications CK Hutchison Group Telecom 3 Group Europe 9,189 890 10,079 Hutchison Telecommunications Hong Kong Holdings 543 19 562 Corporate and Others 1 - 1 9,733 909 10,642 Finance & Investments and Others 105 4,355 4,460 12,734 11,777 24,511 Portion attributable to: Non-controlling interests of HPH Trust - 132 132 12,734 11,909 24,643 IFRS 16 impact 7,128 2,183 9,311 19,862 14,092 33,954 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million Ports and Related Services 1,435 718 2,153 Retail 1,234 422 1,656 Infrastructure 133 4,820 4,953 Telecommunications CK Hutchison Group Telecom 3 Group Europe 9,169 181 9,350 Hutchison Telecommunications Hong Kong Holdings 538 21 559 Corporate and Others 1 - 1 9,708 202 9,910 Finance & Investments and Others 262 4,424 4,686 12,772 10,586 23,358 Portion attributable to: Non-controlling interests of HPH Trust - 135 135 12,772 10,721 23,493 IFRS 16 impact 7,054 2,055 9,109 19,826 12,776 32,602 Depreciation and amortisation Depreciation and amortisation Six months ended 30 June 2024 Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 53 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (iv) An analysis of depreciation and amortisation expenses by segments (continued) Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million Ports and Related Services 1,432 740 2,172 Retail 1,282 354 1,636 Infrastructure 144 4,496 4,640 Telecommunications CK Hutchison Group Telecom 3 Group Europe 8,989 128 9,117 Hutchison Telecommunications Hong Kong Holdings 542 23 565 Corporate and Others 2 - 2 9,533 151 9,684 Finance & Investments and Others 259 4,075 4,334 12,650 9,816 22,466 Portion attributable to: Non-controlling interests of HPH Trust - 136 136 12,650 9,952 22,602 IFRS 16 impact 7,025 2,047 9,072 19,675 11,999 31,674 (v) An analysis of capital expenditure by segments Telecom- Brand names Fixed munications and other assets licences rights Total HK$ million HK$ million HK$ million HK$ million Ports and Related Services 1,116 - 3 1,119 Retail 897 - - 897 Infrastructure 130 - 2 132 Telecommunications CK Hutchison Group Telecom 3 Group Europe 5,386 - 861 6,247 Hutchison Telecommunications Hong Kong Holdings 173 - - 173 Corporate and Others 1 - - 1 5,560 - 861 6,421 Finance & Investments and Others 108 - 3 111 7,811 - 869 8,680 IFRS 16 impact (92) - - (92) 7,719 - 869 8,588 Depreciation and amortisation Six months ended 30 June 2025 Capital expenditure (xxi) Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 54 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (v) An analysis of capital expenditure by segments (continued) Telecom- Brand names Fixed munications and other assets licences rights Total HK$ million HK$ million HK$ million HK$ million Ports and Related Services 1,108 - 2 1,110 Retail 1,108 - - 1,108 Infrastructure 247 - - 247 Telecommunications CK Hutchison Group Telecom 3 Group Europe 6,186 59 749 6,994 Hutchison Telecommunications Hong Kong Holdings 166 - - 166 Corporate and Others - - - - 6,352 59 749 7,160 Finance & Investments and Others 120 1 - 121 8,935 60 751 9,746 IFRS 16 impact (118) - - (118) 8,817 60 751 9,628 Telecom- Brand names Fixed munications and other assets licences rights Total HK$ million HK$ million HK$ million HK$ million Ports and Related Services 2,209 - - 2,209 Retail 863 - - 863 Infrastructure 160 - 2 162 Telecommunications CK Hutchison Group Telecom 3 Group Europe 6,388 1,005 643 8,036 Hutchison Telecommunications Hong Kong Holdings 163 - - 163 Corporate and Others 1 - - 1 6,552 1,005 643 8,200 Finance & Investments and Others 134 4 4 142 9,918 1,009 649 11,576 IFRS 16 impact (172) - - (172) 9,746 1,009 649 11,404 Capital expenditure (xxi) Capital expenditure (xxi) Six months ended 30 June 2023 Six months ended 30 June 2024 CKHH 2025 Interim Results Financial Statements Page 55 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (vi) An analysis of total assets by segments Investments in associated Deferred companies and Segment tax interests in Total assets (xix) assets joint ventures assets HK$ million HK$ million HK$ million HK$ million Ports and Related Services 73,963 492 23,240 97,695 Retail 205,054 1,722 19,992 226,768 Infrastructure 50,833 2 179,069 229,904 Telecommunications CK Hutchison Group Telecom 3 Group Europe 220,993 3,282 43,555 267,830 Hutchison Telecommunications Hong Kong Holdings 14,898 1 98 14,997 Corporate and Others 40,930 - - 40,930 276,821 3,283 43,653 323,757 Finance & Investments and Others 117,324 66 90,003 207,393 723,995 5,565 355,957 1,085,517 IFRS 16 impact 52,692 1,825 (2,448) 52,069 776,687 7,390 353,509 1,137,586 Investments in associated Deferred companies and Segment tax interests in Total assets (xix) assets joint ventures assets HK$ million HK$ million HK$ million HK$ million Ports and Related Services 70,019 490 22,825 93,334 Retail 201,748 1,701 16,999 220,448 Infrastructure 54,777 1 168,113 222,891 Telecommunications CK Hutchison Group Telecom 3 Group Europe 263,429 14,162 2,664 280,255 Hutchison Telecommunications Hong Kong Holdings 15,208 1 112 15,321 Corporate and Others 25,226 - 3 25,229 303,863 14,163 2,779 320,805 Finance & Investments and Others 121,400 68 85,603 207,071 751,807 16,423 296,319 1,064,549 IFRS 16 impact 48,532 1,717 (2,256) 47,993 800,339 18,140 294,063 1,112,542 Total assets Total assets 31 December 2024 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 56 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (vi) An analysis of total assets by segments (continued) Investments in associated Deferred companies and Segment tax interests in Total assets (xix) assets joint ventures assets HK$ million HK$ million HK$ million HK$ million Ports and Related Services 75,587 609 21,519 97,715 Retail 201,155 1,802 17,233 220,190 Infrastructure 59,577 2 171,277 230,856 Telecommunications CK Hutchison Group Telecom 3 Group Europe 275,196 16,858 2,628 294,682 Hutchison Telecommunications Hong Kong Holdings 15,776 2 109 15,887 Corporate and Others 26,995 - 1 26,996 317,967 16,860 2,738 337,565 Finance & Investments and Others 131,868 64 89,124 221,056 786,154 19,337 301,891 1,107,382 IFRS 16 impact 51,700 1,737 (1,916) 51,521 837,854 21,074 299,975 1,158,903 Investments Assets in associated Deferred classified companies and Segment tax as held interests in Total assets (xix) assets for sale joint ventures assets HK$ million HK$ million HK$ million HK$ million HK$ million Ports and Related Services 72,263 352 - 23,200 95,815 Retail 198,358 1,471 - 15,630 215,459 Infrastructure 65,516 3 - 165,138 230,657 Telecommunications CK Hutchison Group Telecom 3 Group Europe 263,859 15,067 5,178 10 284,114 Hutchison Telecommunications Hong Kong Holdings 16,148 4 - 157 16,309 Corporate and Others 35,040 - - 2 35,042 315,047 15,071 5,178 169 335,465 Finance & Investments and Others 133,457 57 - 87,030 220,544 784,641 16,954 5,178 291,167 1,097,940 IFRS 16 impact 49,919 1,555 918 (1,895) 50,497 834,560 18,509 6,096 289,272 1,148,437 Total assets 31 December 2023 Total assets 1 January 2023 CKHH 2025 Interim Results Financial Statements Page 57 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (vii) An analysis of total liabilities by segments Current & non-current borrowings (xx) and other Current & Segment non-current deferred tax Total liabilities (xix) liabilities liabilities liabilities HK$ million HK$ million HK$ million HK$ million Ports and Related Services 11,170 11,143 4,379 26,692 Retail 29,512 7,577 10,093 47,182 Infrastructure 7,628 21,093 561 29,282 Telecommunications CK Hutchison Group Telecom 3 Group Europe 25,840 14,387 1,436 41,663 Hutchison Telecommunications Hong Kong Holdings 1,580 2,079 238 3,897 Corporate and Others 1,921 45,145 205 47,271 29,341 61,611 1,879 92,831 Finance & Investments and Others 10,045 187,863 2,728 200,636 87,696 289,287 19,640 396,623 IFRS 16 impact 66,621 (808) (715) 65,098 154,317 288,479 18,925 461,721 Current & non-current borrowings (xx) and other Current & Segment non-current deferred tax Total liabilities (xix) liabilities liabilities liabilities HK$ million HK$ million HK$ million HK$ million Ports and Related Services 11,044 10,385 4,531 25,960 Retail 28,340 6,626 10,369 45,335 Infrastructure 6,809 19,131 535 26,475 Telecommunications CK Hutchison Group Telecom 3 Group Europe 28,865 14,883 3,622 47,370 Hutchison Telecommunications Hong Kong Holdings 1,657 2,118 198 3,973 Corporate and Others 865 44,914 46 45,825 31,387 61,915 3,866 97,168 Finance & Investments and Others 9,714 191,885 2,739 204,338 87,294 289,942 22,040 399,276 IFRS 16 impact 63,067 (1,695) (698) 60,674 150,361 288,247 21,342 459,950 Total liabilities 30 June 2025 31 December 2024 Total liabilities CKHH 2025 Interim Results Financial Statements Page 58 of 197
Page 59
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (vii) An analysis of total liabilities by segments (continued) Current & non-current borrowings (xx) and other Current & Segment non-current deferred tax Total liabilities (xix) liabilities liabilities liabilities HK$ million HK$ million HK$ million HK$ million Ports and Related Services 11,591 14,867 4,535 30,993 Retail 27,748 7,056 10,900 45,704 Infrastructure 7,236 24,551 615 32,402 Telecommunications CK Hutchison Group Telecom 3 Group Europe 32,856 16,319 3,935 53,110 Hutchison Telecommunications Hong Kong Holdings 1,835 2,249 123 4,207 Corporate and Others 1,105 44,428 26 45,559 35,796 62,996 4,084 102,876 Finance & Investments and Others 8,642 198,493 4,462 211,597 91,013 307,963 24,596 423,572 IFRS 16 impact 66,865 (1,225) (858) 64,782 157,878 306,738 23,738 488,354 Liabilities Current & directly non-current associated borrowings (xx) with assets and other classified Current & Segment non-current as held deferred tax Total liabilities (xix) liabilities for sale liabilities liabilities HK$ million HK$ million HK$ million HK$ million HK$ million Ports and Related Services 10,948 14,604 - 4,696 30,248 Retail 24,598 10,531 - 10,619 45,748 Infrastructure 7,338 28,416 - 556 36,310 Telecommunications CK Hutchison Group Telecom 3 Group Europe 37,008 14,989 207 3,393 55,597 Hutchison Telecommunications Hong Kong Holdings 1,808 2,371 - 50 4,229 Corporate and Others 777 50,923 - 11 51,711 39,593 68,283 207 3,454 111,537 Finance & Investments and Others 10,660 198,023 - 4,860 213,543 93,137 319,857 207 24,185 437,386 IFRS 16 impact 64,781 (1,065) 920 (894) 63,742 157,918 318,792 1,127 23,291 501,128 Total liabilities 1 January 2023 Total liabilities 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 59 of 197
Page 60
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (viii) An analysis of revenue by geographical locations Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong 13,942 2,143 16,085 7% Mainland China 8,398 3,800 12,198 5% The People’s Republic of China 22,340 5,943 28,283 12% Europe 79,278 48,540 127,818 53% Canada 42 1,606 1,648 1% Asia, Australia and Others 30,327 8,000 38,327 16% 109,647 58,146 167,793 70% 131,987 64,089 196,076 82% Finance & Investments and Others 7,143 37,444 44,587 18% 139,130 101,533 240,663 ** 100% Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong 14,016 2,255 16,271 7% Mainland China 8,482 3,405 11,887 5% The People’s Republic of China 22,498 5,660 28,158 12% Europe 77,539 39,767 117,306 50% Canada 102 1,646 1,748 1% Asia, Australia and Others 27,854 8,029 35,883 16% 105,495 49,442 154,937 67% 127,993 55,102 183,095 79% Finance & Investments and Others 8,458 41,091 49,549 21% 136,451 96,193 232,644 ** 100% Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong 14,768 2,184 16,952 8% Mainland China 10,873 3,809 14,682 6% The People’s Republic of China 25,641 5,993 31,634 14% Europe 73,664 37,232 110,896 50% Canada 119 1,854 1,973 1% Asia, Australia and Others 25,756 7,524 33,280 14% 99,539 46,610 146,149 65% 125,180 52,603 177,783 79% Finance & Investments and Others 8,197 37,887 46,084 21% 133,377 90,490 223,867 ** 100% ** see note 6(b)(i) for reconciliation of segment revenue to revenue presented in the consolidated income statement. Revenue (xviii) Revenue (xviii) Six months ended 30 June 2024 Revenue (xviii) Six months ended 30 June 2023 Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 60 of 197
Page 61
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (ix) An analysis of EBITDA by geographical locations Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong 395 819 1,214 3% Mainland China 272 1,228 1,500 3% The People’s Republic of China 667 2,047 2,714 6% Europe 5,994 13,034 19,028 43% Canada 61 960 1,021 2% Asia, Australia and Others 6,944 4,351 11,295 25% 12,999 18,345 31,344 70% 13,666 20,392 34,058 76% Finance & Investments and Others 1,384 9,556 10,940 24% 15,050 29,948 44,998 ## 100% Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong 445 883 1,328 3% Mainland China 301 1,077 1,378 3% The People’s Republic of China 746 1,960 2,706 6% Europe 15,933 10,566 26,499 51% Canada 99 975 1,074 2% Asia, Australia and Others 6,925 4,234 11,159 20% 22,957 15,775 38,732 73% 23,703 17,735 41,438 79% Finance & Investments and Others 1,512 9,251 10,763 21% 25,215 26,986 52,201 ## 100% Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong 657 823 1,480 3% Mainland China 1,103 1,237 2,340 5% The People’s Republic of China 1,760 2,060 3,820 8% Europe 14,036 9,858 23,894 48% Canada 126 1,102 1,228 2% Asia, Australia and Others 5,874 3,786 9,660 19% 20,036 14,746 34,782 69% 21,796 16,806 38,602 77% Finance & Investments and Others 3,372 8,296 11,668 23% 25,168 25,102 50,270 ## 100% ## see note 6(b)(ii) for reconciliation of segment EBITDA to EBITDA included in the consolidated income statement. EBITDA (LBITDA) (xiv) EBITDA (LBITDA) (xiv) Six months ended 30 June 2024 Six months ended 30 June 2025 Six months ended 30 June 2023 EBITDA (LBITDA) (xiv) CKHH 2025 Interim Results Financial Statements Page 61 of 197
Page 62
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (x) An analysis of EBIT by geographical locations Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong (513) 349 (164) -1% Mainland China (71) 844 773 4% The People’s Republic of China (584) 1,193 609 3% Europe (4,226) 8,578 4,352 22% Canada 60 623 683 3% Asia, Australia and Others 5,787 2,576 8,363 41% 1,621 11,777 13,398 66% 1,037 12,970 14,007 69% Finance & Investments and Others 1,279 5,201 6,480 31% 2,316 18,171 20,487 @@ 100% Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong (275) 425 150 1% Mainland China (67) 702 635 2% The People’s Republic of China (342) 1,127 785 3% Europe 5,739 7,302 13,041 45% Canada 99 637 736 3% Asia, Australia and Others 5,697 2,507 8,204 28% 11,535 10,446 21,981 76% 11,193 11,573 22,766 79% Finance & Investments and Others 1,250 4,827 6,077 21% 12,443 16,400 28,843 @@ 100% Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % Hong Kong (106) 358 252 1% Mainland China 648 851 1,499 5% The People’s Republic of China 542 1,209 1,751 6% Europe 4,069 6,889 10,958 39% Canada 126 768 894 3% Asia, Australia and Others 4,668 2,199 6,867 26% 8,863 9,856 18,719 68% 9,405 11,065 20,470 74% Finance & Investments and Others 3,113 4,221 7,334 26% 12,518 15,286 27,804 @@ 100% @@ see note 6(b)(iii) for reconciliation of segment EBIT to EBIT included in the consolidated income statement. EBIT (LBIT) (xv) EBIT (LBIT) (xv) Six months ended 30 June 2025 Six months ended 30 June 2024 EBIT (LBIT) (xv) Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 62 of 197
Page 63
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xi) An analysis of capital expenditure by geographical locations Telecom- Brand names Fixed munications and other assets licences rights Total HK$ million HK$ million HK$ million HK$ million Hong Kong 316 - - 316 Mainland China 81 - - 81 The People’s Republic of China 397 - - 397 Europe 6,342 - 861 7,203 Asia, Australia and Others 964 - 8 972 7,306 - 869 8,175 7,703 - 869 8,572 Finance & Investments and Others 108 - - 108 7,811 - 869 8,680 IFRS 16 impact (92) - - (92) 7,719 - 869 8,588 Telecom- Brand names Fixed munications and other assets licences rights Total HK$ million HK$ million HK$ million HK$ million Hong Kong 352 - - 352 Mainland China 191 - - 191 The People’s Republic of China 543 - - 543 Europe 7,059 59 749 7,867 Asia, Australia and Others 1,213 - 2 1,215 8,272 59 751 9,082 8,815 59 751 9,625 Finance & Investments and Others 120 1 - 121 8,935 60 751 9,746 IFRS 16 impact (118) - - (118) 8,817 60 751 9,628 Capital expenditure (xxi) Six months ended 30 June 2024 Capital expenditure (xxi) Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 63 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xi) An analysis of capital expenditure by geographical locations (continued) Telecom- Brand names Fixed munications and other assets licences rights Total HK$ million HK$ million HK$ million HK$ million Hong Kong 471 - - 471 Mainland China 135 - - 135 The People’s Republic of China 606 - - 606 Europe 7,146 1,005 643 8,794 Asia, Australia and Others 2,032 - 2 2,034 9,178 1,005 645 10,828 9,784 1,005 645 11,434 Finance & Investments and Others 134 4 4 142 9,918 1,009 649 11,576 IFRS 16 impact (172) - - (172) 9,746 1,009 649 11,404 (xii) An analysis of total assets by geographical locations Investments in associated companies Deferred and interests Segment tax in joint Total assets (xix) assets ventures assets HK$ million HK$ million HK$ million HK$ million Hong Kong 41,401 288 8,839 50,528 Mainland China 27,081 477 15,123 42,681 The People’s Republic of China 68,482 765 23,962 93,209 Europe 416,070 3,998 173,498 593,566 Canada 4,788 - 11,221 16,009 Asia, Australia and Others 117,331 736 57,273 175,340 538,189 4,734 241,992 784,915 606,671 5,499 265,954 878,124 Finance & Investments and Others 117,324 66 90,003 207,393 723,995 5,565 355,957 1,085,517 IFRS 16 impact 52,692 1,825 (2,448) 52,069 776,687 7,390 353,509 1,137,586 30 June 2025 Capital expenditure (xxi) Six months ended 30 June 2023 Total assets CKHH 2025 Interim Results Financial Statements Page 64 of 197
Page 65
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xii) An analysis of total assets by geographical locations (continued) Investments in associated companies Deferred and interests Segment tax in joint Total assets (xix) assets ventures assets HK$ million HK$ million HK$ million HK$ million Hong Kong 47,825 287 10,631 58,743 Mainland China 29,076 570 15,298 44,944 The People’s Republic of China 76,901 857 25,929 103,687 Europe 432,453 14,787 119,130 566,370 Canada 4,969 1 10,980 15,950 Asia, Australia and Others 116,084 710 54,677 171,471 553,506 15,498 184,787 753,791 630,407 16,355 210,716 857,478 Finance & Investments and Others 121,400 68 85,603 207,071 751,807 16,423 296,319 1,064,549 IFRS 16 impact 48,532 1,717 (2,256) 47,993 800,339 18,140 294,063 1,112,542 Investments in associated companies Deferred and interests Segment tax in joint Total assets (xix) assets ventures assets HK$ million HK$ million HK$ million HK$ million Hong Kong 48,053 161 10,656 58,870 Mainland China 33,223 688 15,184 49,095 The People’s Republic of China 81,276 849 25,840 107,965 Europe 444,041 17,614 117,538 579,193 Canada 4,333 2 12,329 16,664 Asia, Australia and Others 124,636 808 57,060 182,504 573,010 18,424 186,927 778,361 654,286 19,273 212,767 886,326 Finance & Investments and Others 131,868 64 89,124 221,056 786,154 19,337 301,891 1,107,382 IFRS 16 impact 51,700 1,737 (1,916) 51,521 837,854 21,074 299,975 1,158,903 31 December 2024 Total assets Total assets 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 65 of 197
Page 66
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xii) An analysis of total assets by geographical locations (continued) Investments in associated Assets companies Deferred classified and interests Segment tax as held in joint Total assets (xix) assets for sale ventures assets HK$ million HK$ million HK$ million HK$ million HK$ million Hong Kong 52,247 79 - 10,708 63,034 Mainland China 37,850 765 - 17,209 55,824 The People’s Republic of China 90,097 844 - 27,917 118,858 Europe 420,785 15,512 5,178 106,525 548,000 Canada 4,169 3 - 12,238 16,410 Asia, Australia and Others 136,133 538 - 57,457 194,128 561,087 16,053 5,178 176,220 758,538 651,184 16,897 5,178 204,137 877,396 Finance & Investments and Others 133,457 57 - 87,030 220,544 784,641 16,954 5,178 291,167 1,097,940 IFRS 16 impact 49,919 1,555 918 (1,895) 50,497 834,560 18,509 6,096 289,272 1,148,437 Total assets 1 January 2023 CKHH 2025 Interim Results Financial Statements Page 66 of 197
Page 67
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiii) An analysis of results (EBITDA and EBIT) before losses from major transaction activities and other one-off items by segments and geographical locations The Group’s EBITDA and EBIT for the six months ended 30 June 2025 included the losses attributable to shareholders from the disposal of interests in the Group’s telecommunications business in the United Kingdom (the “UK”) that completed in May 2025 of HK$9,915 million and related impact of HK$1,007 million, totalling HK$10,922 million (see note 6(b)(xvi)). An analysis by segments of EBITDA before losses from major transaction activities and other one-off items: Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBITDA before one-off items Ports and Related Services 6,684 2,035 8,719 16% Retail 5,402 2,572 7,974 14% Infrastructure 767 14,798 15,565 28% Telecommunications CK Hutchison Group Telecom 3 Group Europe 10,847 969 11,816 21% Hutchison Telecommunications Hong Kong Holdings 621 25 646 1% Corporate and Others 705 (7) 698 1% 12,173 987 13,160 23% Finance & Investments and Others 946 9,556 10,502 19% 25,972 29,948 55,920 100% One-off items Loss from disposal of telecommunications business in UK and related impact (xvi) (10,922) - (10,922) 15,050 29,948 44,998 ## Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBITDA before one-off items Ports and Related Services 6,183 1,755 7,938 15% Retail 4,874 2,215 7,089 14% Infrastructure 1,144 13,535 14,679 28% Telecommunications CK Hutchison Group Telecom 3 Group Europe 10,828 215 11,043 21% Hutchison Telecommunications Hong Kong Holdings 591 28 619 1% Corporate and Others 83 (13) 70 - 11,502 230 11,732 22% Finance & Investments and Others 1,512 9,251 10,763 21% 25,215 26,986 52,201 100% One-off items - - - 25,215 26,986 52,201 ## ## see note 6(b)(ii) for reconciliation of segment EBITDA to EBITDA included in the consolidated income statement. Six months ended 30 June 2025 EBITDA (LBITDA) (xiv) EBITDA (LBITDA) (xiv) Six months ended 30 June 2024 CKHH 2025 Interim Results Financial Statements Page 67 of 197
Page 68
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiii) An analysis of results (EBITDA and EBIT) before losses from major transaction activities and other one-off items by segments and geographical locations (continued) An analysis by segments of EBITDA before losses from major transaction activities and other one-off items (continued): Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBITDA before one-off items Ports and Related Services 4,690 1,832 6,522 13% Retail 5,210 1,846 7,056 14% Infrastructure 1,738 12,943 14,681 29% Telecommunications CK Hutchison Group Telecom 3 Group Europe 10,104 156 10,260 21% Hutchison Telecommunications Hong Kong Holdings 583 31 614 1% Corporate and Others (529) (2) (531) -1% 10,158 185 10,343 21% Finance & Investments and Others (xvii) 3,372 8,296 11,668 23% 25,168 25,102 50,270 100% One-off items - - - 25,168 25,102 50,270 ## An analysis by geographical locations of EBITDA before losses from major transaction activities and other one-off items: Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBITDA before one-off items Hong Kong 395 819 1,214 2% Mainland China 272 1,228 1,500 3% The People’s Republic of China 667 2,047 2,714 5% Europe 17,354 13,034 30,388 54% Canada 61 960 1,021 2% Asia, Australia and Others 6,944 4,351 11,295 20% 24,359 18,345 42,704 76% 25,026 20,392 45,418 81% Finance & Investments and Others 946 9,556 10,502 19% 25,972 29,948 55,920 100% One-off items Loss from disposal of telecommunications business in UK and related impact (xvi) (10,922) - (10,922) 15,050 29,948 44,998 ## ## see note 6(b)(ii) for reconciliation of segment EBITDA to EBITDA included in the consolidated income statement. EBITDA (LBITDA) (xiv) Six months ended 30 June 2025 EBITDA (LBITDA) (xiv) Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 68 of 197
Page 69
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiii) An analysis of results (EBITDA and EBIT) before losses from major transaction activities and other one-off items by segments and geographical locations (continued) An analysis by geographical locations of EBITDA before losses from major transaction activities and other one-off items (continued): Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBITDA before one-off items Hong Kong 445 883 1,328 3% Mainland China 301 1,077 1,378 3% The People’s Republic of China 746 1,960 2,706 6% Europe 15,933 10,566 26,499 51% Canada 99 975 1,074 2% Asia, Australia and Others 6,925 4,234 11,159 20% 22,957 15,775 38,732 73% 23,703 17,735 41,438 79% Finance & Investments and Others 1,512 9,251 10,763 21% 25,215 26,986 52,201 100% One-off items - - - 25,215 26,986 52,201 ## Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBITDA before one-off items Hong Kong 657 823 1,480 3% Mainland China 1,103 1,237 2,340 5% The People’s Republic of China 1,760 2,060 3,820 8% Europe 14,036 9,858 23,894 48% Canada 126 1,102 1,228 2% Asia, Australia and Others 5,874 3,786 9,660 19% 20,036 14,746 34,782 69% 21,796 16,806 38,602 77% Finance & Investments and Others (xvii) 3,372 8,296 11,668 23% 25,168 25,102 50,270 100% One-off items - - - 25,168 25,102 50,270 ## ## see note 6(b)(ii) for reconciliation of segment EBITDA to EBITDA included in the consolidated income statement. Six months ended 30 June 2023 EBITDA (LBITDA) (xiv) Six months ended 30 June 2024 EBITDA (LBITDA) (xiv) CKHH 2025 Interim Results Financial Statements Page 69 of 197
Page 70
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiii) An analysis of results (EBITDA and EBIT) before losses from major transaction activities and other one-off items by segments and geographical locations (continued) An analysis by segments of EBIT before losses from major transaction activities and other one-off items: Six months ended 30 June 2025 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBIT before one-off items Ports and Related Services 5,217 1,291 6,508 21% Retail 4,112 2,068 6,180 20% Infrastructure 628 9,533 10,161 32% Telecommunications CK Hutchison Group Telecom 3 Group Europe 1,658 79 1,737 6% Hutchison Telecommunications Hong Kong Holdings 78 6 84 - Corporate and Others 704 (7) 697 2% 2,440 78 2,518 8% Finance & Investments and Others 841 5,201 6,042 19% 13,238 18,171 31,409 100% One-off items Loss from disposal of telecommunications business in UK and related impact (xvi) (10,922) - (10,922) 2,316 18,171 20,487 @@ Six months ended 30 June 2024 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBIT before one-off items Ports and Related Services 4,748 1,037 5,785 20% Retail 3,640 1,793 5,433 19% Infrastructure 1,011 8,715 9,726 34% Telecommunications CK Hutchison Group Telecom 3 Group Europe 1,659 34 1,693 6% Hutchison Telecommunications Hong Kong Holdings 53 7 60 - Corporate and Others 82 (13) 69 - 1,794 28 1,822 6% Finance & Investments and Others 1,250 4,827 6,077 21% 12,443 16,400 28,843 100% One-off items - - - 12,443 16,400 28,843 @@ @@ see note 6(b)(iii) for reconciliation of segment EBIT to EBIT included in the consolidated income statement. EBIT (LBIT) (xv) EBIT (LBIT) (xv) CKHH 2025 Interim Results Financial Statements Page 70 of 197
Page 71
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiii) An analysis of results (EBITDA and EBIT) before losses from major transaction activities and other one-off items by segments and geographical locations (continued) An analysis by segments of EBIT before losses from major transaction activities and other one-off items (continued): Six months ended 30 June 2023 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBIT before one-off items Ports and Related Services 3,258 1,092 4,350 16% Retail 3,928 1,492 5,420 20% Infrastructure 1,594 8,447 10,041 36% Telecommunications CK Hutchison Group Telecom 3 Group Europe 1,115 28 1,143 4% Hutchison Telecommunications Hong Kong Holdings 41 8 49 - Corporate and Others (531) (2) (533) -2% 625 34 659 2% Finance & Investments and Others (xvii) 3,113 4,221 7,334 26% 12,518 15,286 27,804 100% One-off items - - - 12,518 15,286 27,804 @@ An analysis by geographical locations of EBIT before losses from major transaction activities and other one-off items: Six months ended 30 June 2025 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBIT before one-off items Hong Kong (513) 349 (164) -1% Mainland China (71) 844 773 2% The People’s Republic of China (584) 1,193 609 1% Europe 7,134 8,578 15,712 51% Canada 60 623 683 2% Asia, Australia and Others 5,787 2,576 8,363 27% 12,981 11,777 24,758 80% 12,397 12,970 25,367 81% Finance & Investments and Others 841 5,201 6,042 19% 13,238 18,171 31,409 100% One-off items Loss from disposal of telecommunications business in UK and related impact (xvi) (10,922) - (10,922) 2,316 18,171 20,487 @@ @@ see note 6(b)(iii) for reconciliation of segment EBIT to EBIT included in the consolidated income statement. EBIT (LBIT) (xv) EBIT (LBIT) (xv) CKHH 2025 Interim Results Financial Statements Page 71 of 197
Page 72
6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiii) An analysis of results (EBITDA and EBIT) before losses from major transaction activities and other one-off items by segments and geographical locations (continued) An analysis by geographical locations of EBIT before losses from major transaction activities and other one-off items (continued): Six months ended 30 June 2024 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBIT before one-off items Hong Kong (275) 425 150 1% Mainland China (67) 702 635 2% The People’s Republic of China (342) 1,127 785 3% Europe 5,739 7,302 13,041 45% Canada 99 637 736 3% Asia, Australia and Others 5,697 2,507 8,204 28% 11,535 10,446 21,981 76% 11,193 11,573 22,766 79% Finance & Investments and Others 1,250 4,827 6,077 21% 12,443 16,400 28,843 100% One-off items - - - 12,443 16,400 28,843 @@ Six months ended 30 June 2023 Company and Associates Subsidiaries and JV Total HK$ million HK$ million HK$ million % EBIT before one-off items Hong Kong (106) 358 252 1% Mainland China 648 851 1,499 5% The People’s Republic of China 542 1,209 1,751 6% Europe 4,069 6,889 10,958 39% Canada 126 768 894 3% Asia, Australia and Others 4,668 2,199 6,867 26% 8,863 9,856 18,719 68% 9,405 11,065 20,470 74% Finance & Investments and Others (xvii) 3,113 4,221 7,334 26% 12,518 15,286 27,804 100% One-off items - - - 12,518 15,286 27,804 @@ @@ see note 6(b)(iii) for reconciliation of segment EBIT to EBIT included in the consolidated income statement. EBIT (LBIT) (xv) EBIT (LBIT) (xv) CKHH 2025 Interim Results Financial Statements Page 72 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xiv) EBITDA (LBITDA) represents the EBITDA (LBITDA) of the Company and subsidiary companies as well as the Group’s share of the EBITDA (LBITDA) of associated companies and joint ventures except for HPH Trust which is included based on the Group’s effective share of EBITDA for this operation. EBITDA (LBITDA) is defined as earnings (losses) before interest expenses and other finance costs, tax, depreciation and amortisation. Information concerning EBITDA (LBITDA) has been included in the Group’s financial information and consolidated financial statements and is used by many industries and investors as one measure of gross cash flow generation. The Group considers EBITDA (LBITDA) to be an important performance measure which is used in the Group’s internal financial and management reporting to monitor business performance. EBITDA (LBITDA) is therefore presented as a measure of segment results in accordance with IFRS 8. EBITDA (LBITDA) is not a measure of cash liquidity or financial performance under IFRS and the EBITDA (LBITDA) measures used by the Group may not be comparable to other similarly titled measures of other companies. EBITDA (LBITDA) should not necessarily be construed as an alternative to cash flows or results from operations as determined in accordance with IFRS. (xv) EBIT (LBIT) represents the EBIT (LBIT) of the Company and subsidiary companies as well as the Group’s share of the EBIT (LBIT) of associated companies and joint ventures except for HPH Trust which is included based on the Group’s effective share of EBIT for this operation. EBIT (LBIT) is defined as earnings (losses) before interest expenses and other finance costs and tax. Information concerning EBIT (LBIT) has been included in the Group’s financial information and consolidated financial statements and is used by many industries and investors as one measure of results from operations. The Group considers EBIT (LBIT) to be an important performance measure which is used in the Group’s internal financial and management reporting to monitor business performance. EBIT (LBIT) is therefore presented as a measure of segment results in accordance with IFRS 8. EBIT (LBIT) is not a measure of financial performance under IFRS and the EBIT (LBIT) measures used by the Group may not be comparable to other similarly titled measures of other companies. EBIT (LBIT) should not necessarily be construed as an alternative to results from operations as determined in accordance with IFRS. (xvi) The merger transaction to combine the Group’s and Vodafone Group’s respective telecommunications operations in the UK was completed on 31 May 2025. Immediately following completion 3UK and its subsidiaries have ceased as subsidiaries of the Group and have been de-consolidated from the consolidated financial statements of the Company, and the combined business, named VodafoneThree, is 51% owned by Vodafone and 49% by the Group. This transaction is accounted for in these consolidated financial statements as a disposal of the Group’s entire interest in 3UK and concurrently an acquisition of a 49% interest in the combined business which is accounted for as an associated company (see note 17). Included in the balance of the current period is the profit and loss effects arising from the disposal of 3UK, including loss on disposal of HK$9,915 million (HK$9,462 million at Post-IFRS 16 basis) and related impacts of HK$1,007 million (HK$1,007 million at Post-IFRS 16 basis) such as legal and professional fees arising from the merger transaction. These amounts are at the EBITDA and EBIT levels. In the consolidated income statement, these amounts are reported under the Post-IFRS 16 basis, the loss on disposal of HK$9,462 million is reported in “Other expenses and losses” (see note 7) and the related impacts of HK$732 million, HK$258 million and HK$17 million are included in legal and professional fees, staff costs and office and general administrative expenses and others (see note 7), respectively. (xvii) The 30 June 2023 comparative period balance included a gain on disposal of financial instruments of HK$1,829 million. On 14 June 2023, the Group entered into a warrant repurchase agreement with Cenovus Energy, under which the Group sold 26.3 million Cenovus Energy share warrants to Cenovus Energy for a total consideration of approximately C$410 million. Before their disposal, these share warrants, as hedging instrument in a cash flow hedge, were measured at fair value through other comprehensive income and reported under “Finance & Investments and Others” in the segment information note and under other non-current assets in the consolidated statement of financial position. The disposal had resulted in a gain (after reclassification adjustments of hedging gains to profit or loss) of approximately HK$1,829 million (HK$1,829 million at Post-IFRS 16 basis) in the comparative period. In the comparative period, this gain was reported under “Finance & Investments and Others” in the segment results and under “Other income and gains” in the consolidated income statement. CKHH 2025 Interim Results Financial Statements Page 73 of 197
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6 Operating segment information (continued) (b) Segment results, assets and liabilities (continued) (xviii) (xix) Segment assets and segment liabilities Segment assets are assets other than deferred tax assets and investments in associated companies and interests in joint ventures. Segment liabilities are liabilities other than bank and other debts, interest bearing loans from non-controlling shareholders, tax liabilities (including deferred tax liabilities) and other non-current liabilities. See note 6(b)(vi) and 6(b)(vii) for reconciliation of segment assets and segment liabilities from Pre-IFRS 16 basis to Post-IFRS 16 basis. 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Hong Kong 66,014 73,423 72,857 76,195 Mainland China 53,626 54,341 57,362 63,398 The People’s Republic of China 119,640 127,764 130,219 139,593 Europe 543,672 513,988 523,476 487,612 Canada 62,337 59,958 62,643 59,262 Asia, Australia and Others 192,077 185,897 197,955 193,888 798,086 759,843 784,074 740,762 917,726 887,607 914,293 880,355 The geographical location of these specified non-current assets is based on the physical location of the asset (for fixed assets, right-of-use assets and other operating assets), the location of the operation in which they are allocated (for intangible assets and goodwill), and the location of operations (for associated companies and interests in joint ventures). (xx) Current and non-current borrowings comprise bank and other debts and interest bearing loans from non-controlling shareholders. (xxi) For the purpose of segmental information analysis, expenditures incurred for leases are not regarded as capital expenditures. The geographical location of customers is based on the location at which the services were provided or goods delivered. Hong Kong is the location of principal place of business of the Company. Geographical analysis of the Group’s non-current assets (based on Post-IFRS 16 basis) other than financial instruments, deferred tax assets and post-employment benefit assets is as follows: CKHH 2025 Interim Results Financial Statements Page 74 of 197
Page 75
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (i) Consolidated Income Statement Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Revenue 139,130 - 139,130 Cost of inventories sold (53,636) 14 (53,622) Staff costs (21,727) - (21,727) Expensed customer acquisition and retention costs (6,290) 162 (6,128) Depreciation and amortisation (12,734) (7,128) (19,862) Other expenses and losses (42,861) 8,418 (34,443) Other income and gains 434 453 887 Share of profits less losses of: Associated companies 4,741 (15) 4,726 Joint ventures 5,211 (90) 5,121 12,268 1,814 14,082 Interest expenses and other finance costs (4,830) (1,491) (6,321) Profit before tax 7,438 323 7,761 Current tax charge (1,944) - (1,944) Deferred tax charge (1,414) 52 (1,362) Profit after tax 4,080 375 4,455 Profit attributable to non-controlling interests (3,640) 37 (3,603) Profit attributable to ordinary shareholders 440 412 852 Earnings per share for profit attributable to ordinary shareholders HK$ 0.11 HK$ 0.11 HK$ 0.22 Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 75 of 197
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6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (i) Consolidated Income Statement (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Revenue 136,451 - 136,451 Cost of inventories sold (50,837) 14 (50,823) Staff costs (20,539) - (20,539) Expensed customer acquisition and retention costs (7,663) 192 (7,471) Depreciation and amortisation (12,772) (7,054) (19,826) Other expenses and losses (32,613) 8,262 (24,351) Other income and gains 416 50 466 Share of profits less losses of: Associated companies 3,938 (30) 3,908 Joint ventures 4,745 (112) 4,633 21,126 1,322 22,448 Interest expenses and other finance costs (5,342) (1,288) (6,630) Profit before tax 15,784 34 15,818 Current tax charge (2,063) - (2,063) Deferred tax charge (197) (1) (198) Profit after tax 13,524 33 13,557 Profit attributable to non-controlling interests and holders of perpetual capital securities (3,332) (20) (3,352) Profit attributable to ordinary shareholders 10,192 13 10,205 Earnings per share for profit attributable to ordinary shareholders HK$ 2.66 - HK$ 2.66 Six months ended 30 June 2024 CKHH 2025 Interim Results Financial Statements Page 76 of 197
Page 77
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (i) Consolidated Income Statement (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Revenue 133,377 - 133,377 Cost of inventories sold (51,139) 18 (51,121) Staff costs (19,445) - (19,445) Expensed customer acquisition and retention costs (7,199) 194 (7,005) Depreciation and amortisation (12,650) (7,025) (19,675) Other expenses and losses (32,560) 8,237 (24,323) Other income and gains 2,134 - 2,134 Share of profits less losses of: Associated companies 4,100 (20) 4,080 Joint ventures 3,722 (2) 3,720 20,340 1,402 21,742 Interest expenses and other finance costs (4,462) (1,225) (5,687) Profit before tax 15,878 177 16,055 Current tax charge (1,573) - (1,573) Deferred tax credit 189 9 198 Profit after tax 14,494 186 14,680 Profit attributable to non-controlling interests and holders of perpetual capital securities (3,151) 13 (3,138) Profit attributable to ordinary shareholders 11,343 199 11,542 Earnings per share for profit attributable to ordinary shareholders HK$ 2.96 HK$ 0.05 HK$ 3.01 Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 77 of 197
Page 78
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (ii) Consolidated Statement of Comprehensive Income Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Profit after tax 4,080 375 4,455 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income 219 - 219 Remeasurement of defined benefit obligations (105) - (105) Share of other comprehensive income of associated companies 31 - 31 Share of other comprehensive income of joint ventures 196 - 196 Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss (38) - (38) 303 - 303 Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income 113 - 113 Exchange gains on translation of foreign operations 24,428 (654) 23,774 Reserves reclassified to profit or loss (6,480) - (6,480) Losses on cash flow hedges (17) - (17) Losses on net investment hedges (3,700) - (3,700) Share of other comprehensive income of associated companies 4,668 (19) 4,649 Share of other comprehensive income of joint ventures 9,227 (68) 9,159 Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss 1 - 1 28,240 (741) 27,499 Other comprehensive income, net of tax 28,543 (741) 27,802 Total comprehensive income 32,623 (366) 32,257 Total comprehensive income attributable to non-controlling interests (7,133) 293 (6,840) Total comprehensive income attributable to ordinary shareholders 25,490 (73) 25,417 Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 78 of 197
Page 79
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (ii) Consolidated Statement of Comprehensive Income (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Profit after tax 13,524 33 13,557 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income (377) - (377) Remeasurement of defined benefit obligations 498 - 498 Share of other comprehensive income (losses) of associated companies (116) - (116) Share of other comprehensive income (losses) of joint ventures (910) - (910) Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss (112) - (112) (1,017) - (1,017) Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income 19 - 19 Exchange losses on translation of foreign operations (4,843) 467 (4,376) Losses on cash flow hedges (27) - (27) Gains on net investment hedges 635 - 635 Share of other comprehensive income (losses) of associated companies (2,081) (60) (2,141) Share of other comprehensive income (losses) of joint ventures (2,346) 10 (2,336) Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss 2 - 2 (8,641) 417 (8,224) Other comprehensive income (losses), net of tax (9,658) 417 (9,241) Total comprehensive income 3,866 450 4,316 Total comprehensive income attributable to non-controlling interests and holders of perpetual capital securities (1,941) (171) (2,112) Total comprehensive income attributable to ordinary shareholders 1,925 279 2,204 Six months ended 30 June 2024 CKHH 2025 Interim Results Financial Statements Page 79 of 197
Page 80
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (ii) Consolidated Statement of Comprehensive Income (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Profit after tax 14,494 186 14,680 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income 605 - 605 Remeasurement of defined benefit obligations 101 - 101 Share of other comprehensive income (losses) of associated companies (539) - (539) Share of other comprehensive income of joint ventures 94 - 94 Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss (36) - (36) 225 - 225 Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income (4) - (4) Exchange gains on translation of foreign operations 9,211 (270) 8,941 Losses on cash flow hedges (1,145) - (1,145) Losses on net investment hedges (1,378) - (1,378) Reclassification adjustments for hedging gains included in profit or loss (1,735) - (1,735) Share of other comprehensive income of associated companies 2,594 (7) 2,587 Share of other comprehensive income of joint ventures 4,203 (22) 4,181 Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss (1) - (1) 11,745 (299) 11,446 Other comprehensive income, net of tax 11,970 (299) 11,671 Total comprehensive income 26,464 (113) 26,351 Total comprehensive income attributable to non-controlling interests and holders of perpetual capital securities (4,410) 86 (4,324) Total comprehensive income attributable to ordinary shareholders 22,054 (27) 22,027 Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 80 of 197
Page 81
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iii) Consolidated Statement of Financial Position Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Non-current assets Fixed assets 97,280 (881) 96,399 Right-of-use assets - 60,547 60,547 Leasehold land 5,554 (5,554) - Telecommunications licences 48,930 - 48,930 Brand names and other rights 77,712 - 77,712 Goodwill 273,906 - 273,906 Associated companies 186,021 (892) 185,129 Interests in joint ventures 169,936 (1,556) 168,380 Deferred tax assets 5,565 1,825 7,390 Liquid funds and other listed investments 7,655 - 7,655 Other non-current assets 12,172 631 12,803 884,731 54,120 938,851 Current assets Cash and cash equivalents 129,613 - 129,613 Inventories 27,228 - 27,228 Trade receivables and other current assets 43,945 (2,051) 41,894 200,786 (2,051) 198,735 Current liabilities Bank and other debts 19,092 (31) 19,061 Current tax liabilities 1,633 (1) 1,632 Lease liabilities - 14,036 14,036 Trade payables and other current liabilities 84,407 (1,546) 82,861 105,132 12,458 117,590 Net current assets 95,654 (14,509) 81,145 Total assets less current liabilities 980,385 39,611 1,019,996 Non-current liabilities Bank and other debts 235,962 (68) 235,894 Interest bearing loans from non-controlling shareholders 3,932 - 3,932 Lease liabilities - 54,131 54,131 Deferred tax liabilities 18,007 (714) 17,293 Pension obligations 3,289 - 3,289 Other non-current liabilities 30,301 (709) 29,592 291,491 52,640 344,131 Net assets 688,894 (13,029) 675,865 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 317,050 (9,062) 307,988 Total ordinary shareholders’ funds 563,852 (9,062) 554,790 Non-controlling interests 125,042 (3,967) 121,075 Total equity 688,894 (13,029) 675,865 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 81 of 197
Page 82
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iii) Consolidated Statement of Financial Position (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Non-current assets Fixed assets 113,994 (2,217) 111,777 Right-of-use assets - 57,589 57,589 Leasehold land 5,443 (5,443) - Telecommunications licences 63,869 - 63,869 Brand names and other rights 79,241 - 79,241 Goodwill 267,325 - 267,325 Associated companies 140,713 (858) 139,855 Interests in joint ventures 155,606 (1,398) 154,208 Deferred tax assets 16,423 1,717 18,140 Liquid funds and other listed investments 8,142 - 8,142 Other non-current assets 19,589 614 20,203 870,345 50,004 920,349 Current assets Cash and cash equivalents 121,303 - 121,303 Inventories 24,923 - 24,923 Trade receivables and other current assets 47,978 (2,011) 45,967 194,204 (2,011) 192,193 Current liabilities Bank and other debts 31,427 (471) 30,956 Interest bearing loan from a non-controlling shareholder 1,874 - 1,874 Current tax liabilities 3,431 (63) 3,368 Lease liabilities - 12,142 12,142 Trade payables and other current liabilities 84,097 (1,452) 82,645 120,829 10,156 130,985 Net current assets 73,375 (12,167) 61,208 Total assets less current liabilities 943,720 37,837 981,557 Non-current liabilities Bank and other debts 226,021 (585) 225,436 Interest bearing loans from non-controlling shareholders 1,597 - 1,597 Lease liabilities - 52,377 52,377 Deferred tax liabilities 18,609 (635) 17,974 Pension obligations 3,197 - 3,197 Other non-current liabilities 29,023 (639) 28,384 278,447 50,518 328,965 Net assets 665,273 (12,681) 652,592 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 296,847 (8,934) 287,913 Total ordinary shareholders’ funds 543,649 (8,934) 534,715 Non-controlling interests 121,624 (3,747) 117,877 Total equity 665,273 (12,681) 652,592 31 December 2024 CKHH 2025 Interim Results Financial Statements Page 82 of 197
Page 83
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iii) Consolidated Statement of Financial Position (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Non-current assets Fixed assets 121,957 (2,131) 119,826 Right-of-use assets - 61,198 61,198 Leasehold land 5,958 (5,958) - Telecommunications licences 64,264 - 64,264 Brand names and other rights 83,396 - 83,396 Goodwill 271,136 - 271,136 Associated companies 144,375 (737) 143,638 Interests in joint ventures 157,516 (1,179) 156,337 Deferred tax assets 19,337 1,737 21,074 Liquid funds and other listed investments 15,786 - 15,786 Other non-current assets 19,356 506 19,862 903,081 53,436 956,517 Current assets Cash and cash equivalents 127,323 - 127,323 Inventories 24,473 - 24,473 Trade receivables and other current assets 52,505 (1,915) 50,590 204,301 (1,915) 202,386 Current liabilities Bank and other debts 58,785 (461) 58,324 Current tax liabilities 4,215 (49) 4,166 Lease liabilities - 13,616 13,616 Trade payables and other current liabilities 87,477 (1,058) 86,419 150,477 12,048 162,525 Net current assets 53,824 (13,963) 39,861 Total assets less current liabilities 956,905 39,473 996,378 Non-current liabilities Bank and other debts 214,362 (764) 213,598 Interest bearing loans from non-controlling shareholders 3,245 - 3,245 Lease liabilities - 54,307 54,307 Deferred tax liabilities 20,381 (809) 19,572 Pension obligations 3,536 - 3,536 Other non-current liabilities 31,571 - 31,571 273,095 52,734 325,829 Net assets 683,810 (13,261) 670,549 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 306,629 (9,396) 297,233 Total ordinary shareholders’ funds 553,431 (9,396) 544,035 Perpetual capital securities 4,566 - 4,566 Non-controlling interests 125,813 (3,865) 121,948 Total equity 683,810 (13,261) 670,549 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 83 of 197
Page 84
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iii) Consolidated Statement of Financial Position (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million Non-current assets Fixed assets 114,564 (1,914) 112,650 Right-of-use assets - 59,337 59,337 Leasehold land 6,129 (6,129) - Telecommunications licences 60,689 - 60,689 Brand names and other rights 83,694 - 83,694 Goodwill 268,008 - 268,008 Associated companies 141,475 (764) 140,711 Interests in joint ventures 149,692 (1,131) 148,561 Deferred tax assets 16,954 1,555 18,509 Liquid funds and other listed investments 16,103 - 16,103 Other non-current assets 15,358 542 15,900 872,666 51,496 924,162 Current assets Cash and cash equivalents 138,085 - 138,085 Inventories 23,283 - 23,283 Trade receivables and other current assets 58,728 (1,917) 56,811 220,096 (1,917) 218,179 Assets classified as held for sale 5,178 918 6,096 225,274 (999) 224,275 Current liabilities Bank and other debts 70,430 (300) 70,130 Current tax liabilities 4,040 (39) 4,001 Lease liabilities - 12,128 12,128 Trade payables and other current liabilities 90,407 (1,278) 89,129 164,877 10,511 175,388 Liabilities directly associated with assets classified as held for sale 207 920 1,127 165,084 11,431 176,515 Net current assets 60,190 (12,430) 47,760 Total assets less current liabilities 932,856 39,066 971,922 Non-current liabilities Bank and other debts 214,963 (767) 214,196 Interest bearing loans from non-controlling shareholders 2,567 - 2,567 Lease liabilities - 53,931 53,931 Deferred tax liabilities 20,145 (855) 19,290 Pension obligations 2,730 - 2,730 Other non-current liabilities 31,897 2 31,899 272,302 52,311 324,613 Net assets 660,554 (13,245) 647,309 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 286,167 (9,456) 276,711 Total ordinary shareholders’ funds 532,969 (9,456) 523,513 Perpetual capital securities 4,561 - 4,561 Non-controlling interests 123,024 (3,789) 119,235 Total equity 660,554 (13,245) 647,309 1 January 2023 CKHH 2025 Interim Results Financial Statements Page 84 of 197
Page 85
6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iv) Consolidated Statement of Cash Flows Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million (A) (B) Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 28,350 8,568 36,918 Interest expenses and other finance costs paid (net of capitalisation) (4,761) (1,491) (6,252) Tax paid (2,792) - (2,792) Funds from operations (Funds from operations under (B) is before principal elements of lease payments) 20,797 7,077 27,874 Changes in working capital 2,463 624 3,087 Net cash from operating activities 23,260 7,701 30,961 Investing activities Purchase of fixed assets (7,811) 92 (7,719) Additions to brand names and other rights (869) - (869) Additions to unlisted investments (59) - (59) Repayments of loans from associated companies and joint ventures 317 - 317 Purchase of and advances to associated companies and joint ventures (492) - (492) Proceeds from disposal of fixed assets 21 - 21 Proceeds from disposal of subsidiary companies, net of cash disposed 14,902 - 14,902 Proceeds from partial disposal / disposal of associated companies and joint ventures 926 - 926 Proceeds from disposal of other unlisted investments 14 - 14 Cash flows from investing activities before additions to / disposal of liquid funds and other listed investments 6,949 92 7,041 Disposal of liquid funds and other listed investments 926 - 926 Additions to liquid funds and other listed investments (88) - (88) Cash flows from investing activities 7,787 92 7,879 Net cash inflow before financing activities 31,047 7,793 38,840 Financing activities New borrowings 25,922 (90) 25,832 Repayment of borrowings (39,769) 253 (39,516) Principal elements of lease payments - (7,956) (7,956) Net loans to non-controlling shareholders (8) - (8) Issue of equity securities by subsidiary companies to non-controlling shareholders 56 - 56 Payments to acquire additional interests in subsidiary companies (223) - (223) Dividends paid to ordinary shareholders (5,799) - (5,799) Dividends paid to non-controlling interests (2,916) - (2,916) Cash flows used in financing activities (22,737) (7,793) (30,530) Increase in cash and cash equivalents 8,310 - 8,310 Cash and cash equivalents at 1 January 121,303 - 121,303 Cash and cash equivalents at 30 June 129,613 - 129,613 Analysis of cash, liquid funds and other listed investments at 30 June Cash and cash equivalents, as above 129,613 - 129,613 Liquid funds and other listed investments 7,655 - 7,655 Total cash, liquid funds and other listed investments 137,268 - 137,268 Total principal amount of bank and other debts and unamortised fair value adjustments arising from acquisitions 256,589 (99) 256,490 Interest bearing loans from non-controlling shareholders 3,932 - 3,932 Net debt 123,253 (99) 123,154 Interest bearing loans from non-controlling shareholders (3,932) - (3,932) Net debt (excluding interest bearing loans from non-controlling shareholders) 119,321 (99) 119,222 Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 85 of 197
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6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iv) Consolidated Statement of Cash Flows (continued) Six months ended 30 June 2024 Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million (A) (B) Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 28,746 8,289 37,035 Interest expenses and other finance costs paid (net of capitalisation) (5,279) (1,288) (6,567) Tax paid (2,274) - (2,274) Funds from operations (Funds from operations under (B) is before principal elements of lease payments) 21,193 7,001 28,194 Changes in working capital (5,346) 117 (5,229) Net cash from operating activities 15,847 7,118 22,965 Investing activities Purchase of fixed assets (8,935) 118 (8,817) Additions to telecommunications licences (60) - (60) Additions to brand names and other rights (751) - (751) Purchase of subsidiary companies, net of cash acquired (10) - (10) Additions to unlisted investments (22) - (22) Repayments of loans from associated companies and joint ventures 350 - 350 Purchase of and advances to associated companies and joint ventures (1,604) - (1,604) Proceeds from disposal of fixed assets 115 - 115 Proceeds from disposal of subsidiary companies, net of cash disposed 333 - 333 Proceeds from partial disposal / disposal of associated companies and joint ventures 179 - 179 Proceeds from disposal of other unlisted investments 262 - 262 Cash flows used in investing activities before additions to / disposal of liquid funds and other listed investments (10,143) 118 (10,025) Disposal of liquid funds and other listed investments 3,297 - 3,297 Additions to liquid funds and other listed investments (75) - (75) Cash flows used in investing activities (6,921) 118 (6,803) Net cash inflow before financing activities 8,926 7,236 16,162 Financing activities New borrowings 32,448 (107) 32,341 Repayment of borrowings (20,058) 241 (19,817) Principal elements of lease payments - (7,370) (7,370) Net loans to non-controlling shareholders (21) - (21) Issue of equity securities by subsidiary companies to non-controlling shareholders 27 - 27 Redemption of perpetual capital securities (4,180) - (4,180) Dividends paid to ordinary shareholders (6,798) - (6,798) Dividends paid to non-controlling interests (5,906) - (5,906) Distributions paid on perpetual capital securities (162) - (162) Cash flows used in financing activities (4,650) (7,236) (11,886) Increase in cash and cash equivalents 4,276 - 4,276 Cash and cash equivalents at 1 January 127,323 - 127,323 Cash and cash equivalents at 30 June 131,599 - 131,599 Analysis of cash, liquid funds and other listed investments at 30 June Cash and cash equivalents, as above 131,599 - 131,599 Liquid funds and other listed investments 11,477 - 11,477 Total cash, liquid funds and other listed investments 143,076 - 143,076 Total principal amount of bank and other debts and unamortised fair value adjustments arising from acquisitions 280,835 (1,092) 279,743 Interest bearing loans from non-controlling shareholders 3,141 - 3,141 Net debt 140,900 (1,092) 139,808 Interest bearing loans from non-controlling shareholders (3,141) - (3,141) Net debt (excluding interest bearing loans from non-controlling shareholders) 137,759 (1,092) 136,667 CKHH 2025 Interim Results Financial Statements Page 86 of 197
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6 Operating segment information (continued) (c) Reconciliation from Pre-IFRS 16 basis metrics to Post-IFRS 16 basis metrics (continued) (iv) Consolidated Statement of Cash Flows (continued) Pre- Effect on Post- IFRS 16 adoption of IFRS 16 basis IFRS 16 basis HK$ million HK$ million HK$ million (A) (B) Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 27,137 8,416 35,553 Interest expenses and other finance costs paid (net of capitalisation) (4,396) (1,225) (5,621) Tax paid (1,760) - (1,760) Funds from operations (Funds from operations under (B) is before principal elements of lease payments) 20,981 7,191 28,172 Changes in working capital (7,140) 159 (6,981) Net cash from operating activities 13,841 7,350 21,191 Investing activities Purchase of fixed assets (9,918) 172 (9,746) Additions to telecommunications licences (1,009) - (1,009) Additions to brand names and other rights (649) - (649) Purchase of subsidiary companies, net of cash acquired (79) - (79) Additions to unlisted investments (39) - (39) Repayments of loans from associated companies and joint ventures 2,241 - 2,241 Purchase of and advances to associated companies and joint ventures (95) - (95) Proceeds from disposal of fixed assets 19 - 19 Proceeds from disposal of subsidiary companies, net of cash disposed 2,563 - 2,563 Proceeds from disposal of joint ventures 723 - 723 Proceeds from disposal of other unlisted investments 74 - 74 Cash flows used in investing activities before additions to / disposal of liquid funds and other listed investments (6,169) 172 (5,997) Disposal of liquid funds and other listed investments 15 - 15 Additions to liquid funds and other listed investments (65) - (65) Cash flows used in investing activities (6,219) 172 (6,047) Net cash inflow before financing activities 7,622 7,522 15,144 Financing activities New borrowings 38,294 (172) 38,122 Repayment of borrowings (44,162) 150 (44,012) Principal elements of lease payments - (7,500) (7,500) Net loans to non-controlling shareholders (30) - (30) Dividends paid to ordinary shareholders (7,989) - (7,989) Dividends paid to non-controlling interests (2,913) - (2,913) Distributions paid on perpetual capital securities (167) - (167) Cash flows used in financing activities (16,967) (7,522) (24,489) Decrease in cash and cash equivalents (9,345) - (9,345) Cash and cash equivalents at 1 January 138,085 - 138,085 Cash and cash equivalents at 30 June 128,740 - 128,740 Analysis of cash, liquid funds and other listed investments at 30 June Cash and cash equivalents, as above 128,740 - 128,740 Liquid funds and other listed investments 17,995 - 17,995 Total cash, liquid funds and other listed investments 146,735 - 146,735 Total principal amount of bank and other debts and unamortised fair value adjustments arising from acquisitions 285,928 (1,162) 284,766 Interest bearing loans from non-controlling shareholders 2,549 - 2,549 Net debt 141,742 (1,162) 140,580 Interest bearing loans from non-controlling shareholders (2,549) - (2,549) Net debt (excluding interest bearing loans from non-controlling shareholders) 139,193 (1,162) 138,031 Six months ended 30 June 2023 CKHH 2025 Interim Results Financial Statements Page 87 of 197
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7 Presentation of cost of goods sold, depreciation and amortisation, other expenses and losses and other income and gains 2025 2024 2023 HK$ million HK$ million HK$ million Cost of goods sold: (a) included in “Cost of inventories sold” 53,622 50,823 51,121 included in “Expensed customer acquisition and retention costs” 3,195 4,413 4,311 56,817 55,236 55,432 Depreciation and amortisation: (b) Fixed assets (see note 12) 8,403 8,554 8,489 Right-of-use assets (see note 13(b)) 7,413 7,330 7,293 Telecommunications licences (see note 14) 463 444 477 Brand names and other rights (see note 15) 1,608 1,586 1,626 Customer acquisition and retention costs (see note 21(a)) 1,975 1,912 1,790 19,862 19,826 19,675 Other expenses and losses: Cost of providing services (c) 14,921 15,066 14,597 Office and general administrative expenses and others 4,714 4,272 4,719 Expenses relating to short-term leases (see note 13(b)) 351 468 217 Expenses relating to leases of low-value assets that are not short-term leases (see note 13(b)) 179 262 275 Expenses relating to variable lease payments not included in lease liabilities (see note 13(b)) 1,096 1,041 1,180 Advertising and promotion expenses 2,183 2,292 2,321 Legal and professional fees 1,510 937 944 Loss on disposal of fixed assets 24 - 70 Loss on disposal of subsidiary companies (d) 9,462 - - Loss on disposal of associated companies and joint ventures 3 13 - 34,443 24,351 24,323 Other income and gains: Gains on disposal of subsidiary companies (see note 32(d)) - 364 74 Gains on disposals of associated companies and joint ventures - - 226 A gain on disposal of financial instruments (see note 6(b)(xvii)) - - 1,829 Gains on note buybacks 883 - - Others 4 102 5 887 466 2,134 (a) The Group’s cost of goods sold for the period amounted to HK$53,622 million (30 June 2024: HK$50,823 million; 30 June 2023: HK$51,121 million), comprising: Retail segment of HK$48,685 million (30 June 2024: HK$45,437 million; 30 June 2023: HK$45,188 million), Infrastructure segment of HK$642 million (30 June 2024: HK$716 million; 30 June 2023: HK$918 million), Telecommunications segment of HK$962 million (30 June 2024: HK$940 million; 30 June 2023: HK$1,054 million) and Finance & Investments and Others segment of HK$3,333 million (30 June 2024:HK$3,730 million; 30 June 2023: HK$3,961 million). (b) See note 6(b)(iv) for contribution by segments. Six months ended 30 June This note provides additional details in respect of cost of goods sold, depreciation and amortisation, other expenses and losses and other income and gains. CKHH 2025 Interim Results Financial Statements Page 88 of 197
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7 Presentation of cost of goods sold, depreciation and amortisation, other expenses and losses and other income and gains (continued) (c) The Group incurred service provision costs of HK$14,921 million (30 June 2024: HK$15,066 million; 30 June 2023: HK$14,597 million), comprising: (i) telecommunication network related costs of HK$9,533 million (30 June 2024: HK$9,640 million; 30 June 2023: HK$9,510 million), (ii) repair and maintenance of HK$2,116 million (30 June 2024: HK$2,129 million; 30 June 2023: HK$2,051 million) and (iii) other costs of HK$3,272 million (30 June 2024: HK$3,297 million; 30 June 2023: HK$3,036 million). By segment, these costs were allocated as: Ports and Related Services: HK$3,525 million (30 June 2024: HK$3,283 million; 30 June 2023: HK$3,069 million), Retail: HK$147 million (30 June 2024: HK$157 million; 30 June 2023: HK$144 million), Infrastructure: HK$383 million (30 June 2024: HK$566 million; 30 June 2023: HK$587 million), Telecommunications: HK$10,624 million (30 June 2024: HK$10,813 million; 30 June 2023: HK$10,578 million) and Finance & Investments and Others: HK$242 million (30 June 2024: HK$247 million; 30 June 2023: HK$219 million). (d) The merger transaction to combine the Group’s and Vodafone Group’s respective telecommunications operations in the UK was completed on 31 May 2025. Immediately following completion, 3UK and its subsidiaries have ceased as subsidiaries of the Group and have been de-consolidated from the consolidated financial statements of the Company and the combined business, named VodafoneThree, is 51% owned by Vodafone and 49% by the Group. This transaction is accounted for in these consolidated financial statements as a disposal of the Group’s entire interest in 3UK and concurrently an acquisition of a 49% interest in the combined business. The loss on disposal of subsidiary companies for the current period reported above represents the loss on de-recognition of 3UK and its subsidiaries from the consolidated financial statements of the Company. 8 Interest expenses and other finance costs 2025 2024 2023 HK$ million HK$ million HK$ million Bank loans and overdrafts 1,818 2,433 1,937 Other loans 1 2 2 Notes and bonds 2,805 2,723 2,408 Interest bearing loans from non-controlling shareholders 74 83 52 Other finance costs 55 26 78 Amortisation of loan facilities fees and premiums or discounts relating to debts 119 117 119 Other non-cash interest adjustments (a) (50) (54) (53) 4,822 5,330 4,543 Less: interest capitalised (13) (11) (100) Interest on lease liabilities (see note 13(b)) 1,512 1,311 1,244 6,321 6,630 5,687 (a) Other non-cash interest adjustments represent amortisation of acquisition-date fair value adjustments relating to debts of HK$161 million (30 June 2024: HK$171 million; 30 June 2023: HK$170 million) net with accretion expense associated with an increase in the present value of certain obligations over time. Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 89 of 197
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9 Tax 2025 2024 2023 HK$ million HK$ million HK$ million Current tax charge Hong Kong 70 18 25 Outside Hong Kong 1,874 2,045 1,548 1,944 2,063 1,573 Deferred tax charge (credit) Hong Kong (1) (6) 7 Outside Hong Kong 1,363 204 (205) 1,362 198 (198) 3,306 2,261 1,375 The Group’s profits are taxed at different rates depending on the country or territory in which the profits arise. Hong Kong profits tax has been provided for at the rate of 16.5% (30 June 2024: 16.5%; 30 June 2023: 16.5%) on the estimated assessable profits less estimated available tax losses. Tax outside Hong Kong has been provided for at the applicable rate on the estimated assessable profits less estimated available tax losses. The Group is within the scope of the Pillar Two Model Rules published by the Organisation for Economic Co-operation and Development. Pillar Two legislation has been enacted and is in effect in certain jurisdictions where the Group operates, as of 30 June 2025. Based on the Group’s assessment for the six-month period ended 30 June 2025 and the information currently available, the overall impact of Pillar Two rules on the Group’s income tax position - including current tax - is not material. The Group will continue to monitor developments in Pillar Two legislation across relevant jurisdictions and assess the potential future impact on its financial statements. Furthermore, in accordance with the IAS 12, the Group applies the mandatory exception from recognising and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 90 of 197
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10 Earnings per share for profit attributable to ordinary shareholders The calculation of earnings per share is based on profit attributable to ordinary shareholders of the Company of HK$852 million (30 June 2024: HK$10,205 million; 30 June 2023: HK$11,542 million) and 3,830,044,500 shares in issue during the six months ended 30 June 2025 (30 June 2024: 3,830,044,500 shares; 30 June 2023: 3,830,044,500 shares). The Company and its subsidiary companies do not have a share option scheme or other dilutive potential ordinary shares as at 30 June 2025, 30 June 2024 and 30 June 2023. Certain of the Company’s associated companies have employee share options outstanding as at 30 June 2025, 30 June 2024 and 30 June 2023. The employee share options of these associated companies outstanding as at 30 June 2025, 30 June 2024 and 30 June 2023 did not have a dilutive effect on earnings per share. 11 Distributions and dividends (a) Distribution paid on perpetual capital securities 2025 2024 2023 HK$ million HK$ million HK$ million Distribution paid on perpetual capital securities - 162 167 (b) Dividends 2025 2024 2023 HK$ million HK$ million HK$ million Interim dividend, declared of HK$0.710 per share (30 June 2024: HK$0.688 per share; 30 June 2023: HK$0.756 per share) 2,719 2,635 2,896 In addition, final dividend in respect of the year 2024 of HK$1.514 per share totalling HK$5,799 million (2023: HK$1.775 per share totalling HK$6,798 million; 2022: HK$2.086 per share totalling HK$7,989 million) was approved and paid during the current period. Six months ended 30 June Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 91 of 197
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12 Fixed assets Telecom- Land and munications Other buildings network assets assets Total HK$ million HK$ million HK$ million HK$ million At 1 January 2023 Cost 28,981 70,505 88,835 188,321 Accumulated depreciation and impairment (7,210) (30,943) (37,518) (75,671) 21,771 39,562 51,317 112,650 At 31 December 2023 Cost 30,939 82,238 98,779 211,956 Accumulated depreciation and impairment (8,366) (39,701) (44,063) (92,130) 22,573 42,537 54,716 119,826 At 31 December 2024 Cost 31,124 82,209 94,310 207,643 Accumulated depreciation and impairment (8,927) (43,028) (43,911) (95,866) 22,197 39,181 50,399 111,777 Six months ended 30 June 2025 Net book value at 1 January 2025 22,197 39,181 50,399 111,777 Additions 226 1,393 6,100 7,719 Disposals (1) (6) (34) (41) Relating to subsidiaries disposed (see note 32(d)) (205) (4,611) (19,512) (24,328) Depreciation charge for the period (564) (3,973) (3,866) (8,403) Transfer between categories (110) 2,609 (2,499) - Exchange translation differences 1,355 4,464 3,856 9,675 Net book value at 30 June 2025 22,898 39,057 34,444 96,399 At 30 June 2025 Cost 32,202 78,395 75,023 185,620 Accumulated depreciation and impairment (9,304) (39,338) (40,579) (89,221) 22,898 39,057 34,444 96,399 CKHH 2025 Interim Results Financial Statements Page 92 of 197
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13 Leases (a) Group as a lessee - amounts recognised in the consolidated statement of financial position 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Right-of-use assets Container terminals 16,531 14,818 15,312 15,225 Retail stores 20,820 19,924 20,653 20,715 Telecommunications network infrastructure sites 13,384 12,956 14,688 13,085 Leasehold land 5,554 5,443 5,958 6,129 Other assets 4,258 4,448 4,587 4,183 60,547 57,589 61,198 59,337 Lease liabilities Current 14,036 12,142 13,616 12,128 Non-current 54,131 52,377 54,307 53,931 68,167 64,519 67,923 66,059 Additions to the right-of-use assets and lease liabilities during the period ended 30 June 2025 were HK$7,574 million (30 June 2024: HK$3,229 million; 30 June 2023: HK$5,858 million) and HK$7,570 million (30 June 2024: HK$3,220 million; 30 June 2023: HK$5,858 million), respectively. (b) Group as a lessee - additional disclosures 2025 2024 2023 HK$ million HK$ million HK$ million Depreciation charge of right-of-use assets (included in “Depreciation and amortisation”) 7,413 7,330 7,293 Interest on lease liabilities (included in “Interest expenses and other finance costs”) 1,512 1,311 1,244 Expenses relating to short-term leases (included in “Other expenses and losses”) 351 468 217 Expenses relating to leases of low-value assets that are not short-term leases (included in “Other expenses and losses”) 179 262 275 Expenses relating to variable lease payments not included in lease liabilities (included in “Other expenses and losses”) 1,096 1,041 1,180 Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 93 of 197
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14 Telecommunications licences HK$ million At 1 January 2023 Cost 67,054 Accumulated amortisation and impairment (6,365) 60,689 At 31 December 2023 Cost 71,396 Accumulated amortisation and impairment (7,132) 64,264 At 31 December 2024 Cost 71,600 Accumulated amortisation and impairment (7,731) 63,869 Six months ended 30 June 2025 Net book value at 1 January 2025 63,869 Amortisation for the period (463) Relating to subsidiaries disposed (see note 32(d)) (21,121) Exchange translation differences 6,645 Net book value at 30 June 2025 48,930 At 30 June 2025 Cost 57,779 Accumulated amortisation and impairment (8,849) 48,930 The Group’s telecommunications licences in Italy with a carrying value of HK$39,236 million (31 December 2024: UK and Italy of HK$19,737 million and HK$31,704 million respectively; 31 December 2023: UK and Italy of HK$19,914 million and HK$33,781 million respectively; 1 January 2023: UK and Italy of HK$18,924 million and HK$32,527 million respectively) are considered to have an indefinite useful life. These telecommunications licences have been allocated to the Telecommunications segment. CKHH 2025 Interim Results Financial Statements Page 94 of 197
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15 Brand names and other rights Brand names Other rights Total HK$ million HK$ million HK$ million At 1 January 2023 Cost 66,985 31,825 98,810 Accumulated amortisation and impairment (86) (15,030) (15,116) 66,899 16,795 83,694 At 31 December 2023 Cost 68,148 34,120 102,268 Accumulated amortisation and impairment (94) (18,778) (18,872) 68,054 15,342 83,396 At 31 December 2024 Cost 66,661 32,660 99,321 Accumulated amortisation and impairment (102) (19,978) (20,080) 66,559 12,682 79,241 Six months ended 30 June 2025 Net book value at 1 January 2025 66,559 12,682 79,241 Additions - 869 869 Amortisation for the period (5) (1,603) (1,608) Relating to subsidiaries disposed (see note 32(d)) (5,212) (71) (5,283) Exchange translation differences 3,182 1,311 4,493 Net book value at 30 June 2025 64,524 13,188 77,712 At 30 June 2025 Cost 64,635 37,209 101,844 Accumulated amortisation and impairment (111) (24,021) (24,132) 64,524 13,188 77,712 Brand names considered to have an indefinite useful life are not subject to amortisation. The carrying value of brand names with indefinite useful life at 30 June 2025 of HK$50,400 million (31 December 2024: HK$49,181 million; 31 December 2023: HK$49,730 million; 1 January 2023: HK$49,294 million) and HK$13,977 million (31 December 2024: HK$17,235 million; 31 December 2023: HK$18,156 million; 1 January 2023: HK$17,424 million) has been allocated to Retail segment and the Telecommunications segment respectively. Other rights, primarily include operating and service content rights, and resource consents and customer lists. These rights are amortised over their finite useful lives. At 30 June 2025, the carrying value of these rights amounted to HK$8,954 million (31 December 2024: HK$8,423 million; 31 December 2023: HK$9,773 million; 1 January 2023: HK$10,433 million) and HK$4,234 million (31 December 2024: HK$4,259 million; 31 December 2023: HK$5,569 million; 1 January 2023: HK$6,362 million) respectively. CKHH 2025 Interim Results Financial Statements Page 95 of 197
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16 Goodwill HK$ million At 1 January 2023 Cost 293,070 Accumulated impairment (25,062) 268,008 At 31 December 2023 Cost 297,159 Accumulated impairment (26,023) 271,136 At 31 December 2024 Cost 291,757 Accumulated impairment (24,432) 267,325 Six months ended 30 June 2025 Net book value at 1 January 2025 267,325 Relating to subsidiaries disposed (see note 32(d)) (3,528) Exchange translation differences 10,109 Net book value at 30 June 2025 273,906 At 30 June 2025 Cost 301,397 Accumulated impairment (27,491) 273,906 As at 30 June 2025, the carrying amount of goodwill has been mainly allocated to Telecommunications segment of HK$87,666 million (31 December 2024: HK$81,085 million; 31 December 2023: HK$84,897 million; 1 January 2023: HK$81,771 million), Retail segment of HK$114,095 million (31 December 2024: HK$114,095 million; 31 December 2023: HK$114,099 million; 1 January 2023: HK$114,098 million), and Infrastructure segment of HK$39,129 million (31 December 2024: HK$39,129 million; 31 December 2023: HK$39,123 million; 1 January 2023: HK$39,123 million). CKHH 2025 Interim Results Financial Statements Page 96 of 197
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17 Associated companies 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Unlisted shares 51,959 11,193 9,071 9,071 Listed shares, Hong Kong 62,919 62,919 62,919 62,919 Listed shares, outside Hong Kong 79,593 80,612 80,837 81,012 Share of undistributed post acquisition reserves (9,713) (16,005) (12,081) (15,264) 184,758 138,719 140,746 137,738 Amounts due from (net with amounts due to) associated companies (a) 371 1,136 2,892 2,973 185,129 139,855 143,638 140,711 The current period balance includes an addition of a 49% interest in VodafoneThree which the Group received following the completion of the merger transaction to combine the Group’s and Vodafone Group’s respective telecommunications operations in the UK on 31 May 2025. The value of the Group’s 49% interest in VodafoneThree was determined at HK$40,766 million, based on the average valuation of five independent mid-point valuation analyses (see note 32(d)). The market value of the above listed investments at 30 June 2025 was HK$110,764 million (31 December 2024: HK$111,361 million; 31 December 2023: HK$112,390 million; 1 January 2023: HK$117,220 million), inclusive of HK$32,705 million (31 December 2024: HK$37,292 million; 31 December 2023: HK$41,370 million; 1 January 2023: HK$47,735 million) and HK$38,682 million (31 December 2024: HK$41,598 million; 31 December 2023: HK$34,614 million; 1 January 2023: HK$32,811 million) for Cenovus Energy and Power Assets Holdings Limited (“Power Assets”) respectively. There are no material contingent liabilities relating to the Group’s interests in associated companies, save for those disclosed in note 35. (a) Amounts due from (net with amounts due to) associated companies 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Amounts due from associated companies (i) Interest free 2,143 428 410 398 Interest bearing at fixed rates (ii) 741 839 2,618 2,739 Interest bearing at floating rates (iii) 408 404 407 405 3,292 1,671 3,435 3,542 Amounts due to associated companies (iv) Interest free 2,921 535 543 569 Amounts due from (net with amounts due to) associated companies 371 1,136 2,892 2,973 (i) At 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023, the amounts due from associated companies are unsecured and have no fixed terms of repayment. Amounts due from associated companies are considered to be of low credit risk. As a result, insignificant amount of provision for credit loss was made at the reporting date in respect of the amounts due from associated companies. The expected credit loss was minimal as the amounts were due from companies which the Group has significant influence, and where applicable, including participation in their financial and operating policies, and which are subject to the Group’s financial and investment requirements. These amounts had no recent history of default. The Group is not aware of any unfavourable current conditions and forecast future economic conditions existed at the reporting date that would require the Group to make a provision for expected credit loss in respect of these assets. (ii) At 30 June 2025, HK$741 million (31 December 2024: HK$839 million; 31 December 2023: HK$2,618 million; 1 January 2023: HK$2,739 million) bear interests at fixed rates ranging from approximately 4.7% to 11.2% (31 December 2024: 4.7% to 11.2%; 31 December 2023: 4.7% to 11.2%; 1 January 2023: 4.7% to 11.2%) per annum. (iii) At 30 June 2025, HK$408 million (31 December 2024: HK$404 million; 31 December 2023: HK$407 million; 1 January 2023: HK$405 million) bear interests at floating rates ranging from approximately 4.1% to 5.1% (31 December 2024: 5.0% to 5.8%; 31 December 2023: 6.0% to 6.4%; 1 January 2023: 3.4% to 4.1%) per annum with reference to Euro Interbank Offered Rate (“EURIBOR”) and Hong Kong Interbank Offered Rate (“HIBOR”), where applicable. (iv) At 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023, the amounts due to associated companies are unsecured and have no fixed terms of repayment. CKHH 2025 Interim Results Financial Statements Page 97 of 197
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18 Interests in joint ventures 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Unlisted shares 133,682 133,389 127,116 118,039 Share of undistributed post acquisition reserves 16,938 4,136 7,154 1,049 150,620 137,525 134,270 119,088 Amounts due from (net with amounts due to) joint ventures (a) 17,760 16,683 22,067 29,473 168,380 154,208 156,337 148,561 There are no material contingent liabilities relating to the Group’s interests in the joint ventures, save for those disclosed in note 35. (a) Amounts due from (net with amounts due to) joint ventures 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Amounts due from joint ventures (i) Interest free 2,412 2,525 2,239 2,764 Interest bearing at fixed rates (ii) 6,480 5,972 7,972 9,650 Interest bearing at floating rates (iii) 9,085 8,456 12,166 17,378 17,977 16,953 22,377 29,792 Amounts due to joint ventures (iv) Interest free 217 270 310 319 Amounts due from (net with amounts due to) joint ventures 17,760 16,683 22,067 29,473 (i) At 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023, the amounts due from joint ventures are unsecured and have no fixed terms of repayment except for HK$182 million which are repayable within one year (31 December 2024: HK$322 million which are repayable within one year; 31 December 2023: HK$32 million which are repayable within one to two years; 1 January 2023: HK$1,650 million which are repayable within one to three years). Amounts due from joint ventures are considered to be of low credit risk. As a result, insignificant amount of provision for credit loss was made at the reporting date in respect of the amounts due from joint ventures. The expected credit loss was minimal as the amounts were due from companies which the Group has joint control, and where applicable, including participation in their financial and operating policies, and which are subject to the Group’s financial and investment requirements. These amounts had no recent history of default. The Group is not aware of any unfavourable current conditions and forecast future economic conditions existed at the reporting date that would require the Group to make a provision for expected credit loss in respect of these assets. (ii) At 30 June 2025, HK$6,480 million (31 December 2024: HK$5,972 million; 31 December 2023: HK$7,972 million; 1 January 2023: HK$9,650 million) bear interests at fixed rates ranging from approximately 4.2% to 10.0% (31 December 2024: 4.2% to 10.0%; 31 December 2023: 4.4% to 11.0%; 1 January 2023: 4.4% to 11.0%) per annum. (iii) At 30 June 2025, HK$9,085 million (31 December 2024: HK$8,456 million; 31 December 2023: HK$12,166 million; 1 January 2023: HK$17,378 million) bear interests at floating rates ranging from approximately 3.4% to 7.1% (31 December 2024: 3.7% to 7.7%; 31 December 2023: 4.1% to 8.3%; 1 January 2023: 4.9% to 14.1%) per annum with reference to Australian Bank Bill Swap Reference Rate, EURIBOR, HIBOR and Sterling Overnight Index Average Rate, where applicable. (iv) At 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023, the amounts due to joint ventures are unsecured and have no fixed terms of repayment. CKHH 2025 Interim Results Financial Statements Page 98 of 197
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19 Deferred tax 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Deferred tax assets 7,390 18,140 21,074 18,509 Deferred tax liabilities 17,293 17,974 19,572 19,290 Net deferred tax assets (liabilities) (9,903) 166 1,502 (781) Movements in net deferred tax assets (liabilities) are summarised as follows: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million At 1 January 166 1,502 (781) 3,805 Relating to subsidiaries acquired - (354) 3 - Relating to subsidiaries disposed (see note 32(d)) (9,429) 35 - (33) Transfer to current tax 40 (15) 6 (10) Net credit (charge) to other comprehensive income (37) (85) 380 (267) Net credit (charge) to the consolidated income statement Tax losses (975) (1,184) 1,617 337 Accelerated depreciation allowances (200) (1,005) (62) (24) Fair value adjustments arising from acquisitions (228) (154) (551) (249) Withholding tax on undistributed profits (36) 49 (48) (520) Other temporary differences 77 1,766 160 (2,383) Exchange translation differences 719 (389) 778 (1,437) At period / year end (9,903) 166 1,502 (781) Analysis of net deferred tax assets (liabilities): 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Tax losses 4,787 15,289 16,865 14,703 Accelerated depreciation allowances (3,091) (3,365) (2,425) (2,555) Fair value adjustments arising from acquisitions (13,863) (12,492) (12,268) (11,625) Revaluation of investment properties and other investments 28 24 20 16 Withholding tax on undistributed profits (787) (842) (912) (875) Other temporary differences 3,023 1,552 222 (445) (9,903) 166 1,502 (781) The Group is subject to income taxes in numerous jurisdictions and significant judgement is required in determining the provision for income taxes. To the extent that dividends distributed from investments in subsidiaries, branches and associated companies, and interests in joint ventures are expected to result in additional taxes, appropriate amounts have been provided for. No deferred tax has been provided for the temporary differences arising from undistributed profits of these companies to the extent that the undistributed profits are considered permanently employed in their businesses and it is probable that such temporary differences will not reverse in the foreseeable future. The deferred tax assets and liabilities are offset when there is a legally enforceable right to set off and when the deferred income taxes relate to the same fiscal authority. At 30 June 2025, the Group has recognised accumulated deferred tax assets amounting to HK$7,390 million (31 December 2024: HK$18,140 million; 31 December 2023: HK$21,074 million; 1 January 2023: HK$18,509 million) of which HK$3,336 million (31 December 2024: HK$14,269 million; 31 December 2023: HK$16,973 million; 1 January 2023: HK$15,191 million) relates to 3 Group Europe. Note 43(b)(v) contains information about the estimates, assumptions and judgements relating to the recognition of deferred tax assets for unutilised tax losses carried forward. CKHH 2025 Interim Results Financial Statements Page 99 of 197
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19 Deferred tax (continued) The amounts of unutilised tax losses and deductible temporary differences for which no deferred tax assets is recognised in the consolidated statement of financial position at 30 June 2025 were HK$606,387 million (31 December 2024: HK$502,204 million; 31 December 2023: HK$531,915 million; 1 January 2023: HK$504,116 million) and HK$25,421 million (31 December 2024: HK$25,794 million; 31 December 2023: HK$27,472 million; 1 January 2023: HK$21,289 million), respectively, totalling HK$631,808 million (31 December 2024: HK$527,998 million; 31 December 2023: HK$559,387 million; 1 January 2023: HK$525,405 million). The amounts included balances that are subject to agreement by relevant tax authorities. 20 Liquid funds and other listed investments 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Financial assets at amortised cost Managed funds - cash and cash equivalents, outside Hong Kong (c) 47 34 50 40 Financial assets at fair value through other comprehensive income (“FVOCI”) (d) Listed equity securities, Hong Kong (e) 589 536 608 608 Listed equity securities, outside Hong Kong (e) 6 747 8,589 9,096 Managed funds - listed debt securities, outside Hong Kong (b) (f) 7,013 6,825 6,539 6,359 7,608 8,108 15,736 16,063 7,655 8,142 15,786 16,103 CKHH 2025 Interim Results Financial Statements Page 100 of 197
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20 Liquid funds and other listed investments (continued) (a) At 30 June 2025, liquid funds and other listed investments totalling HK$7,655 million (31 December 2024: HK$8,142 million; 31 December 2023: HK$15,786 million; 1 January 2023: HK$16,103 million) are denominated in the following currencies: Financial Financial Financial Financial assets at assets at assets at assets at amortised cost FVOCI amortised cost FVOCI Percentage Percentage Percentage Percentage HK dollar - 8% - 7% US dollar 100% 92% 100% 84% Other currencies - - - 9% 100% 100% 100% 100% Financial Financial Financial Financial assets at assets at assets at assets at amortised cost FVOCI amortised cost FVOCI Percentage Percentage Percentage Percentage HK dollar - 4% - 4% US dollar 100% 42% 60% 39% Other currencies - 54% 40% 57% 100% 100% 100% 100% 1 January 2023 31 December 2024 31 December 2023 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 101 of 197
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20 Liquid funds and other listed investments (continued) (b) At 30 June 2025, listed debt securities totalling HK$7,013 million (31 December 2024: HK$6,825 million; 31 December 2023: HK$6,539 million; 1 January 2023: HK$6,359 million) presented above are analysed as follows: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 Financial Financial Financial Financial assets at assets at assets at assets at FVOCI FVOCI FVOCI FVOCI Percentage Percentage Percentage Percentage Credit ratings Aaa / AAA 15% 15% 14% 12% Aa1 / AA+ 85% 85% 86% 87% Other investment grades - - - 1% 100% 100% 100% 100% Sectorial US Treasury notes 77% 74% 72% 73% Government and government guaranteed notes 18% 22% 25% 23% Others 5% 4% 3% 4% 100% 100% 100% 100% Weighted average maturity 2.8 years 1.1 years 1.8 years 2.6 years Weighted average effective yield 3.59% 2.73% 1.61% 1.54% (c) (d) The fair values are based on quoted market prices. (e) These equity securities are not investments held for trading purpose. The Group made an irrevocable election at initial recognition to recognise and measure these investments at fair value through other comprehensive income. For the comparative balances as at 31 December 2024, 31 December 2023 and 1 January 2023, the Group had collar agreements with banks to hedge fair values of certain of these listed equity securities (31 December 2024: fair value surplus of HK$14 million was included in current assets; 31 December 2023: fair value deficits of HK$297 million and HK$59 million were included in current and non-current liabilities, respectively; 1 January 2023: fair value surplus of HK$216 million was included in listed equity securities, outside Hong Kong). (f) “Managed funds - listed debt securities” comprised predominately US Treasury notes and government and government guaranteed notes. All (31 December 2024: All; 31 December 2023: All; 1 January 2023: 99%) of the carrying amount of these assets at 30 June 2025 were rated at Aaa / AAA or Aa1 / AA+. These assets are considered to be of low credit risk. As a result, insignificant amount of provision for credit loss was required at the reporting date in respect of these assets. “Managed funds - cash and cash equivalents” are considered to be of low credit risk. As a result, insignificant amount of provision for credit loss was made at the reporting date in respect of the “Managed funds - cash and cash equivalents”. These amounts were held with reputable financial institutions. The Group controls the credit risk to non-performance by the counterparties, where applicable, through monitoring their equity share price movements and credit ratings as well as setting approved counterparty credit limits that are regularly reviewed. Accordingly, these assets are considered to be of low credit risk. CKHH 2025 Interim Results Financial Statements Page 102 of 197
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21 Other non-current assets 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Investment properties 389 389 408 408 Customer acquisition and retention costs (a) 3,855 4,231 4,290 3,660 Contract assets 1,598 3,202 3,826 2,095 Unlisted investments Financial assets at FVOCI - equity securities (b) 1,944 1,933 2,189 2,451 Financial assets at fair value through profit or loss - equity securities 392 366 369 417 Financial assets at fair value through profit or loss - debt securities 312 414 604 555 Pension assets (see note 28) 2,535 2,239 1,428 1,311 Derivative financial instruments Cash flow hedges Interest rate swaps - - 52 84 Cross currency interest rate swaps - 227 150 132 Other contracts - - - 3,081 Net investment hedges - Cross currency swaps 897 1,281 572 1,164 Other non-current assets (c) 881 5,921 5,974 542 12,803 20,203 19,862 15,900 (a) Customer acquisition and retention costs primarily relate to incremental commission costs incurred to obtain telecommunications contracts with customers. The amount of customer acquisition and retention costs shown above is after deducting the amortisation charged to the current period’s consolidated income statement of HK$1,975 million (30 June 2024: HK$1,912 million; 30 June 2023: HK$1,790 million). Further, there was no impairment loss in relation to the cost capitalised. The Group applies the practical expedient in paragraph 94 of IFRS 15, and recognises the incremental costs of obtaining contracts as an expense when incurred if the amortisation period of the costs that the Group otherwise would have recognised is one year or less. (b) These equity securities are not investments held for trading purpose. The Group made an irrevocable election at initial recognition to recognise and measure these investments at fair value through other comprehensive income. The Group considered this FVOCI category to be an appropriate classification. Fair value for these investments are determined by using valuation techniques, including discounted cashflow analysis. (c) Amount mainly represents lease receivables of HK$881 million (31 December 2024: HK$875 million; 31 December 2023: HK$507 million; 1 January 2023: HK$542 million). The remaining balances of comparative years are mainly prepayments of telecommunications annual licences fee of 3UK. 22 Cash and cash equivalents 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Cash at bank and in hand 31,883 26,734 34,000 27,769 Short term bank deposits 97,730 94,569 93,323 110,316 129,613 121,303 127,323 138,085 The carrying amounts of cash and cash equivalents approximate their fair values. CKHH 2025 Interim Results Financial Statements Page 103 of 197
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23 Trade receivables and other current assets 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Trade receivables (a) 18,375 18,825 20,264 18,650 Less: loss allowance provision (3,382) (3,498) (3,967) (3,705) 14,993 15,327 16,297 14,945 Other current assets Derivative financial instruments Fair value hedges - collar agreements - 14 - - Cash flow hedges Interest rate swaps - 7 - 153 Cross currency interest rate swaps - - - 622 Forward foreign exchange contracts - 5 - 1 Other contracts 1 1 26 167 Net investment hedges Cross currency interest rate swaps - - - 112 Forward foreign exchange contracts 7 436 201 44 Cross currency swaps - 79 336 9 Contract assets (b) 2,040 3,919 3,754 4,219 Prepayments 12,662 13,908 16,361 22,978 Other receivables (c) 12,093 12,169 13,491 13,433 Current tax receivables 98 102 124 128 41,894 45,967 50,590 56,811 (a) Trade receivables are stated at the expected recoverable amount, net of any provision for estimated impairment losses where it is deemed that a receivable may not be fully recoverable. The carrying amounts of these assets approximate their fair values. Trade receivables exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate for the customer. The Group’s operating units have established credit policies for customers. The average credit period granted for trade receivables ranges from 30 to 60 days. Trade receivables which are past due at the end of the reporting period are stated at the expected recoverable amount, after netting of provision for estimated impairment losses. Given the profile of the Group’s customers and the Group’s different types of businesses, the Group generally does not hold collateral over these balances. At the end of the period / year, the ageing analysis of the trade receivables presented based on the invoice date, is as follows: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Less than 31 days 11,362 11,532 11,996 10,609 Within 31 to 60 days 1,474 1,655 1,874 1,704 Within 61 to 180 days 1,335 1,504 1,523 1,681 Over 180 days 4,204 4,134 4,871 4,656 18,375 18,825 20,264 18,650 CKHH 2025 Interim Results Financial Statements Page 104 of 197
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23 Trade receivables and other current assets (continued) The Group applies the simplified approach to provide for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected credit loss provision for trade receivables. The expected credit loss provision rates for trade receivables are based on historical payment profiles and historical credit loss experience, adjusted to reflect, where relevant and appropriate, current and information specific to the debtors, future economic and market conditions and forward-looking information on macroeconomic factors affecting the ability of the debtors to settle the receivables that the Group considers are reasonable and appropriate. To measure the expected credit losses, trade receivables have been grouped based on the days past due. The gross carrying amount of the trade receivables and the loss allowance provision analysed by ageing bands are set out below. 30 June 2025 Gross Loss Expected carrying allowance loss amount provision rate HK$ million HK$ million Percentage Not past due 9,272 88 1% Past due less than 31 days 3,214 46 1% Past due within 31 to 60 days 760 33 4% Past due within 61 to 180 days 1,046 95 9% Past due over 180 days 4,083 3,120 76% 18,375 3,382 31 December 2024 Gross Loss Expected carrying allowance loss amount provision rate HK$ million HK$ million Percentage Not past due 9,674 106 1% Past due less than 31 days 3,114 81 3% Past due within 31 to 60 days 817 29 4% Past due within 61 to 180 days 1,215 229 19% Past due over 180 days 4,005 3,053 76% 18,825 3,498 31 December 2023 Gross Loss Expected carrying allowance loss amount provision rate HK$ million HK$ million Percentage Not past due 9,965 89 1% Past due less than 31 days 3,501 67 2% Past due within 31 to 60 days 787 70 9% Past due within 61 to 180 days 1,291 380 29% Past due over 180 days 4,720 3,361 71% 20,264 3,967 CKHH 2025 Interim Results Financial Statements Page 105 of 197
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23 Trade receivables and other current assets (continued) 1 January 2023 Gross Loss Expected carrying allowance loss amount provision rate HK$ million HK$ million Percentage Not past due 9,169 95 1% Past due less than 31 days 2,918 82 3% Past due within 31 to 60 days 782 79 10% Past due within 61 to 180 days 1,312 384 29% Past due over 180 days 4,469 3,065 69% 18,650 3,705 (b) As at 30 June 2025, contract assets of HK$2,040 million (31 December 2024: HK$3,919 million; 31 December 2023: HK$3,754 million; 1 January 2023: HK$4,219 million) and HK$1,598 million (31 December 2024: HK$3,202 million; 31 December 2023: HK$3,826 million; 1 January 2023: HK$2,095 million) are included in “Trade receivables and other current assets” (see above) and “Other non-current assets” (see note 21) respectively. These assets are stated at the expected recoverable amount, after netting of provision for estimated impairment losses of HK$1,370 million (31 December 2024: HK$1,926 million; 31 December 2023: HK$1,637 million; 1 January 2023: HK$1,525 million). The Group measures the loss allowance for its contract assets at an amount equal to the lifetime expected credit losses. Contract assets primarily relate to the Group’s rights to consideration for delivered services and devices but not billed at the reporting date. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. The Group’s historical credit loss experience does not indicate a substantial different loss pattern for contract assets as compared to trade receivables for similar customer bases. The Group makes reference to the expected credit loss provision rates for trade receivables to measure the contract assets’ expected credit losses. The rates are adjusted to reflect information specific to the contract assets that may affect the recovery of the carrying amount of the contract assets. (c) Other receivables are considered to be of low credit risk. As a result, insignificant amount of provision for credit loss was made at the reporting date in respect of other receivables. CKHH 2025 Interim Results Financial Statements Page 106 of 197
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24 Bank and other debts Current Non-current portion portion Total HK$ million HK$ million HK$ million Principal amounts Bank loans 6,086 87,125 93,211 Other loans 4 70 74 Notes and bonds 13,010 148,393 161,403 19,100 235,588 254,688 Unamortised fair value adjustments arising from acquisitions - 1,802 1,802 Subtotal before the following items 19,100 237,390 256,490 Unamortised loan facilities fees and premiums or discounts related to debts (39) (1,496) (1,535) 19,061 235,894 254,955 Current Non-current portion portion Total HK$ million HK$ million HK$ million Principal amounts Bank loans 24,896 62,944 87,840 Other loans 4 64 68 Notes and bonds 6,068 162,072 168,140 30,968 225,080 256,048 Unamortised fair value adjustments arising from acquisitions - 1,955 1,955 Subtotal before the following items 30,968 227,035 258,003 Unamortised loan facilities fees and premiums or discounts related to debts (12) (1,599) (1,611) 30,956 225,436 256,392 30 June 2025 31 December 2024 CKHH 2025 Interim Results Financial Statements Page 107 of 197
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24 Bank and other debts (continued) Current Non-current portion portion Total HK$ million HK$ million HK$ million Principal amounts Bank loans 24,484 65,036 89,520 Other loans 154 72 226 Notes and bonds 33,755 147,900 181,655 58,393 213,008 271,401 Unamortised fair value adjustments arising from acquisitions 18 2,275 2,293 Subtotal before the following items 58,411 215,283 273,694 Unamortised loan facilities fees and premiums or discounts related to debts (87) (1,685) (1,772) 58,324 213,598 271,922 Current Non-current portion portion Total HK$ million HK$ million HK$ million Principal amounts Bank loans 40,697 53,806 94,503 Other loans 4 225 229 Notes and bonds 29,505 159,370 188,875 70,206 213,401 283,607 Unamortised fair value adjustments arising from acquisitions - 2,623 2,623 Subtotal before the following items 70,206 216,024 286,230 Unamortised loan facilities fees and premiums or discounts related to debts (76) (1,828) (1,904) 70,130 214,196 284,326 1 January 2023 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 108 of 197
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24 Bank and other debts (continued) Details of the bank and other debts by principal amounts are as follows: 30 June 2025 Current Non-current portion portion Total HK$ million HK$ million HK$ million Bank loans 6,086 87,125 93,211 Other loans 4 70 74 Notes and bonds HK$260 million notes, 4% due 2027 - 260 260 US$500 million notes, 1.5% due 2026 3,900 - 3,900 US$500 million notes, 2.75% due 2026 - 3,900 3,900 US$309 million notes - Series C, 7.5% due 2027 - 2,410 2,410 US$500 million notes, 3.25% due 2027 - 3,900 3,900 US$800 million notes, 3.5% due 2027 - 6,240 6,240 US$1,250 million notes, 4.75% due 2028 - 9,750 9,750 US$491 million notes, 2.75% due 2029 - 3,829 3,829 US$750 million notes, 3.625% due 2029 - 5,850 5,850 US$1,000 million notes, 5.375% due 2029 - 7,800 7,800 US$500 million notes, 4.375% due 2030 - 3,900 3,900 US$705 million notes, 2.5% due 2030 - 5,500 5,500 US$786 million notes, 2.5% due 2031 - 6,127 6,127 US$1,039 million notes, 7.45% due 2033 - 8,107 8,107 US$1,250 million notes, 4.875% due 2033 - 9,750 9,750 US$500 million notes, 4.75% due 2034 - 3,900 3,900 US$1,000 million notes, 5.5% due 2034 - 7,800 7,800 US$25 million notes - Series D, 6.988% due 2037 - 196 196 US$647 million notes, 3.125% due 2041 - 5,044 5,044 US$741 million notes, 3.375% due 2049 - 5,777 5,777 US$694 million notes, 3.375% due 2050 - 5,410 5,410 EUR1,000 million notes, 0.75% due 2026 9,110 - 9,110 EUR650 million notes, 2% due 2028 - 5,922 5,922 EUR1,000 million notes, 1.125% due 2028 - 9,110 9,110 EUR500 million notes, 0.75% due 2029 - 4,555 4,555 EUR500 million notes, 2% due 2030 - 4,555 4,555 EUR750 million notes, 1.5% due 2031 - 6,833 6,833 EUR500 million notes, 1% due 2033 - 4,555 4,555 GBP303 million notes, 5.625% due 2026 - 3,236 3,236 GBP223 million notes, 2% due 2027 - 2,387 2,387 GBP92 million notes, 2.625% due 2034 - 980 980 JPY15,000 million notes, 2.6% due 2027 - 810 810 13,010 148,393 161,403 19,100 235,588 254,688 CKHH 2025 Interim Results Financial Statements Page 109 of 197
Page 110
24 Bank and other debts (continued) Details of the bank and other debts by principal amounts are as follows (continued): 31 December 2024 Current Non-current portion portion Total HK$ million HK$ million HK$ million Bank loans 24,896 62,944 87,840 Other loans 4 64 68 Notes and bonds HK$260 million notes, 4% due 2027 - 260 260 US$500 million notes, 1.5% due 2026 - 3,900 3,900 US$500 million notes, 2.75% due 2026 - 3,900 3,900 US$309 million notes - Series C, 7.5% due 2027 - 2,410 2,410 US$500 million notes, 3.25% due 2027 - 3,900 3,900 US$800 million notes, 3.5% due 2027 - 6,240 6,240 US$1,250 million notes, 4.75% due 2028 - 9,750 9,750 US$500 million notes, 2.75% due 2029 - 3,900 3,900 US$750 million notes, 3.625% due 2029 - 5,850 5,850 US$1,000 million notes, 5.375% due 2029 - 7,800 7,800 US$500 million notes, 4.375% due 2030 - 3,900 3,900 US$750 million notes, 2.5% due 2030 - 5,850 5,850 US$850 million notes, 2.5% due 2031 - 6,630 6,630 US$1,039 million notes, 7.45% due 2033 - 8,107 8,107 US$1,250 million notes, 4.875% due 2033 - 9,750 9,750 US$500 million notes, 4.75% due 2034 - 3,900 3,900 US$1,000 million notes, 5.5% due 2034 - 7,800 7,800 US$25 million notes - Series D, 6.988% due 2037 - 196 196 US$650 million notes, 3.125% due 2041 - 5,070 5,070 US$750 million notes, 3.375% due 2049 - 5,850 5,850 US$750 million notes, 3.375% due 2050 - 5,850 5,850 EUR750 million notes, 1.25% due 2025 6,068 - 6,068 EUR1,000 million notes, 0.75% due 2026 - 8,090 8,090 EUR650 million notes, 2% due 2028 - 5,258 5,258 EUR1,000 million notes, 1.125% due 2028 - 8,090 8,090 EUR500 million notes, 0.75% due 2029 - 4,045 4,045 EUR500 million notes, 2% due 2030 - 4,045 4,045 EUR750 million notes, 1.5% due 2031 - 6,068 6,068 EUR500 million notes, 1% due 2033 - 4,045 4,045 GBP303 million notes, 5.625% due 2026 - 2,981 2,981 GBP500 million notes, 2% due 2027 - 4,920 4,920 GBP300 million notes, 2.625% due 2034 - 2,952 2,952 JPY15,000 million notes, 2.6% due 2027 - 765 765 6,068 162,072 168,140 30,968 225,080 256,048 CKHH 2025 Interim Results Financial Statements Page 110 of 197
Page 111
24 Bank and other debts (continued) Details of the bank and other debts by principal amounts are as follows (continued): 31 December 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Bank loans 24,484 65,036 89,520 Other loans 154 72 226 Notes and bonds HK$2,413 million notes, 3-mth HIBOR^ + 0.32% due 2024 2,413 - 2,413 HK$260 million notes, 4% due 2027 - 260 260 US$750 million notes, 3.25% due 2024 5,850 - 5,850 US$1,500 million notes, 3.625% due 2024 11,700 - 11,700 US$500 million notes, 1.5% due 2026 - 3,900 3,900 US$500 million notes, 2.75% due 2026 - 3,900 3,900 US$309 million notes - Series C, 7.5% due 2027 - 2,410 2,410 US$500 million notes, 3.25% due 2027 - 3,900 3,900 US$800 million notes, 3.5% due 2027 - 6,240 6,240 US$1,250 million notes, 4.75% due 2028 - 9,750 9,750 US$500 million notes, 2.75% due 2029 - 3,900 3,900 US$750 million notes, 3.625% due 2029 - 5,850 5,850 US$750 million notes, 2.5% due 2030 - 5,850 5,850 US$850 million notes, 2.5% due 2031 - 6,630 6,630 US$1,039 million notes, 7.45% due 2033 - 8,107 8,107 US$1,250 million notes, 4.875% due 2033 - 9,750 9,750 US$25 million notes - Series D, 6.988% due 2037 - 196 196 US$650 million notes, 3.125% due 2041 - 5,070 5,070 US$750 million notes, 3.375% due 2049 - 5,850 5,850 US$750 million notes, 3.375% due 2050 - 5,850 5,850 EUR600 million bonds, 1% due 2024 5,172 - 5,172 EUR1,000 million notes, 0.875% due 2024 8,620 - 8,620 EUR750 million notes, 1.25% due 2025 - 6,465 6,465 EUR1,000 million notes, 0.75% due 2026 - 8,620 8,620 EUR650 million notes, 2% due 2028 - 5,603 5,603 EUR1,000 million notes, 1.125% due 2028 - 8,620 8,620 EUR500 million notes, 0.75% due 2029 - 4,310 4,310 EUR500 million notes, 2% due 2030 - 4,310 4,310 EUR750 million notes, 1.5% due 2031 - 6,465 6,465 EUR500 million notes, 1% due 2033 - 4,310 4,310 GBP303 million notes, 5.625% due 2026 - 3,010 3,010 GBP500 million notes, 2% due 2027 - 4,970 4,970 GBP300 million notes, 2.625% due 2034 - 2,982 2,982 JPY15,000 million notes, 2.6% due 2027 - 822 822 33,755 147,900 181,655 58,393 213,008 271,401 ^ HIBOR represents the Hong Kong Interbank Offered Rate CKHH 2025 Interim Results Financial Statements Page 111 of 197
Page 112
24 Bank and other debts (continued) Details of the bank and other debts by principal amounts are as follows (continued): 1 January 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Bank loans 40,697 53,806 94,503 Other loans 4 225 229 Notes and bonds HK$2,413 million notes, 3-mth HIBOR^ + 0.32% due 2024 - 2,413 2,413 HK$260 million notes, 4% due 2027 - 260 260 US$750 million notes, 2.75% due 2023 5,850 - 5,850 US$750 million notes, 3.25% due 2024 - 5,850 5,850 US$1,500 million notes, 3.625% due 2024 - 11,700 11,700 US$500 million notes, 1.5% due 2026 - 3,900 3,900 US$500 million notes, 2.75% due 2026 - 3,900 3,900 US$309 million notes - Series C, 7.5% due 2027 - 2,410 2,410 US$500 million notes, 3.25% due 2027 - 3,900 3,900 US$800 million notes, 3.5% due 2027 - 6,240 6,240 US$500 million notes, 2.75% due 2029 - 3,900 3,900 US$750 million notes, 3.625% due 2029 - 5,850 5,850 US$750 million notes, 2.5% due 2030 - 5,850 5,850 US$850 million notes, 2.5% due 2031 - 6,630 6,630 US$1,039 million notes, 7.45% due 2033 - 8,107 8,107 US$25 million notes - Series D, 6.988% due 2037 - 196 196 US$650 million notes, 3.125% due 2041 - 5,070 5,070 US$750 million notes, 3.375% due 2049 - 5,850 5,850 US$750 million notes, 3.375% due 2050 - 5,850 5,850 EUR1,350 million notes, 1.25% due 2023 11,205 - 11,205 EUR1,500 million notes, 0.375% due 2023 12,450 - 12,450 EUR600 million bonds, 1% due 2024 - 4,980 4,980 EUR1,000 million notes, 0.875% due 2024 - 8,300 8,300 EUR750 million notes, 1.25% due 2025 - 6,225 6,225 EUR1,000 million notes, 0.75% due 2026 - 8,300 8,300 EUR650 million notes, 2% due 2028 - 5,395 5,395 EUR1,000 million notes, 1.125% due 2028 - 8,300 8,300 EUR500 million notes, 0.75% due 2029 - 4,150 4,150 EUR500 million notes, 2% due 2030 - 4,150 4,150 EUR750 million notes, 1.5% due 2031 - 6,225 6,225 EUR500 million notes, 1% due 2033 - 4,150 4,150 GBP303 million notes, 5.625% due 2026 - 2,866 2,866 GBP500 million notes, 2% due 2027 - 4,730 4,730 GBP300 million notes, 2.625% due 2034 - 2,837 2,837 JPY15,000 million notes, 2.6% due 2027 - 886 886 29,505 159,370 188,875 70,206 213,401 283,607 ^ HIBOR represents the Hong Kong Interbank Offered Rate CKHH 2025 Interim Results Financial Statements Page 112 of 197
Page 113
24 Bank and other debts (continued) Further analysis of the principal amount of bank and other debts are set out below: (a) By secured and unsecured borrowings 30 June 2025 Current Non-current portion portion Total HK$ million HK$ million HK$ million Secured borrowings 1 1,492 1,493 Unsecured borrowings 19,099 234,096 253,195 19,100 235,588 254,688 31 December 2024 Current Non-current portion portion Total HK$ million HK$ million HK$ million Secured borrowings 1,389 1 1,390 Unsecured borrowings 29,579 225,079 254,658 30,968 225,080 256,048 31 December 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Secured borrowings 1 1,558 1,559 Unsecured borrowings 58,392 211,450 269,842 58,393 213,008 271,401 1 January 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Secured borrowings 1 1,524 1,525 Unsecured borrowings 70,205 211,877 282,082 70,206 213,401 283,607 CKHH 2025 Interim Results Financial Statements Page 113 of 197
Page 114
24 Bank and other debts (continued) Further analysis of the principal amount of bank and other debts are set out below (continued): (b) By borrowings at fixed and floating interest rate 30 June 2025 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 13,014 148,462 161,476 Borrowings at floating rate 6,086 87,126 93,212 19,100 235,588 254,688 31 December 2024 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 6,071 162,136 168,207 Borrowings at floating rate 24,897 62,944 87,841 30,968 225,080 256,048 31 December 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 31,496 147,972 179,468 Borrowings at floating rate 26,897 65,036 91,933 58,393 213,008 271,401 1 January 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 29,509 157,183 186,692 Borrowings at floating rate 40,697 56,218 96,915 70,206 213,401 283,607 CKHH 2025 Interim Results Financial Statements Page 114 of 197
Page 115
24 Bank and other debts (continued) Further analysis of the principal amount of bank and other debts are set out below (continued): (c) By borrowings at fixed and floating interest rate (adjusted for the effect of hedging transactions) 30 June 2025 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 13,014 154,756 167,770 Borrowings at floating rate 6,086 80,832 86,918 19,100 235,588 254,688 31 December 2024 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 9,200 162,136 171,336 Borrowings at floating rate 21,768 62,944 84,712 30,968 225,080 256,048 31 December 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 31,496 151,433 182,929 Borrowings at floating rate 26,897 61,575 88,472 58,393 213,008 271,401 1 January 2023 Current Non-current portion portion Total HK$ million HK$ million HK$ million Borrowings at fixed rate 47,449 160,603 208,052 Borrowings at floating rate 22,757 52,798 75,555 70,206 213,401 283,607 Derivative financial instruments are principally utilised by the Group in the management of its foreign currency and interest rate exposures. The Group has entered into interest rate swap agreements to swap floating interest rate borrowings to fixed interest rate borrowings to mainly mitigate interest rate exposures to certain infrastructure project related borrowings. At 30 June 2025, the notional amount of the outstanding interest rate swap agreements amounted to HK$6,294 million (31 December 2024: interest rate swap agreements of HK$3,129 million; 31 December 2023: interest rate swap agreements of HK$3,461 million; 1 January 2023: interest rate swap agreements and cross currency interest rate swap agreements of HK$11,220 million and HK$10,140 million respectively). CKHH 2025 Interim Results Financial Statements Page 115 of 197
Page 116
24 Bank and other debts (continued) Further analysis of the principal amount of bank and other debts are set out below (continued): (d) By currency 30 June 2025 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 2% 43% 45% Euro 5% 27% 32% HK dollar - 12% 12% British Pound - 3% 3% Other currencies - 8% 8% 7% 93% 100% 31 December 2024 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 7% 44% 51% Euro 2% 28% 30% HK dollar - 6% 6% British Pound - 5% 5% Other currencies 3% 5% 8% 12% 88% 100% 31 December 2023 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 8% 41% 49% Euro 11% 22% 33% HK dollar 1% 4% 5% British Pound 1% 4% 5% Other currencies 1% 7% 8% 22% 78% 100% 1 January 2023 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 9% 40% 49% Euro 12% 23% 35% HK dollar 1% 1% 2% British Pound 1% 4% 5% Other currencies 2% 7% 9% 25% 75% 100% CKHH 2025 Interim Results Financial Statements Page 116 of 197
Page 117
24 Bank and other debts (continued) Further analysis of the principal amount of bank and other debts are set out below (continued): (e) By currency (adjusted for the effect of hedging transactions) 30 June 2025 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 2% 43% 45% Euro 5% 27% 32% HK dollar - 12% 12% British Pound - 3% 3% Other currencies - 8% 8% 7% 93% 100% 31 December 2024 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 7% 44% 51% Euro 2% 30% 32% HK dollar - 6% 6% British Pound - 3% 3% Other currencies 3% 5% 8% 12% 88% 100% 31 December 2023 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 8% 41% 49% Euro 11% 23% 34% HK dollar 1% 4% 5% British Pound 1% 3% 4% Other currencies 1% 7% 8% 22% 78% 100% 1 January 2023 Current Non-current portion portion Total Percentage Percentage Percentage US dollar 4% 39% 43% Euro 17% 25% 42% HK dollar 1% 1% 2% British Pound 1% 3% 4% Other currencies 2% 7% 9% 25% 75% 100% For the comparative years, the Group had currency swap agreements with banks to swap US dollar or British Pound principal amount of borrowings (31 December 2024: British Pound principal amount of borrowings equivalent to HK$4,920 million; 31 December 2023: British Pound principal amount of borrowings equivalent to HK$4,970 million; 1 January 2023: US dollar principal amount of borrowings equivalent to HK$15,990 million and British Pound principal amount of borrowings equivalent to HK$4,730 million) to Euro principal amount of borrowings to reflect currency exposures of its underlying businesses. For the comparative amount at 1 January 2023, the Hong Kong dollar equivalent amount of HK$15,990 million mentioned in the preceding sentence includes the Hong Kong dollar equivalent amount of HK$10,140 million disclosed under item (c) above. CKHH 2025 Interim Results Financial Statements Page 117 of 197
Page 118
25 Trade payables and other current liabilities 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Trade payables (a) 22,602 21,861 23,017 21,356 Other current liabilities Derivative financial instruments Fair value hedges - collar agreements - - 297 - Cash flow hedges Forward foreign exchange contracts 8 - 2 2 Other contracts 2 5 113 151 Net investment hedges Forward foreign exchange contracts 1,411 155 1,072 891 Cross currency swaps 737 238 - - Other derivative financial instruments - - - 795 Interest free loans from non-controlling shareholders 349 349 438 472 Contract liabilities 5,203 5,500 5,948 6,027 Obligations for telecommunications licences and other rights 970 861 621 680 Provisions (see note 26) 1,289 1,161 1,552 1,341 Expenses and other accruals 31,508 33,411 36,471 35,995 Other payables 18,782 19,104 16,888 21,419 82,861 82,645 86,419 89,129 (a) At the end of the period / year, the ageing analysis of the trade payables is as follows: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Less than 31 days 14,698 14,782 15,763 13,566 Within 31 to 60 days 4,253 3,825 3,361 2,912 Within 61 to 90 days 1,805 1,308 1,333 1,427 Over 90 days 1,846 1,946 2,560 3,451 22,602 21,861 23,017 21,356 CKHH 2025 Interim Results Financial Statements Page 118 of 197
Page 119
26 Provisions Provision for commitments, onerous Assets contracts and Closure retirement other guarantees obligations obligations Others Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 18,477 80 1,272 1,289 21,118 Additions - 69 5 444 518 Interest accretion - - 54 - 54 Utilisations (897) (18) (63) (129) (1,107) Write back (41) (22) (38) (115) (216) Exchange translation differences (384) 2 17 49 (316) At 31 December 2023 17,155 111 1,247 1,538 20,051 Additions - 45 187 227 459 Interest accretion - - 33 - 33 Utilisations (390) (11) (65) (392) (858) Write back - (49) - (28) (77) Exchange translation differences (1,451) (2) (33) (90) (1,576) At 31 December 2024 15,314 94 1,369 1,255 18,032 Additions - 49 76 95 220 Interest accretion - - 21 - 21 Utilisations (215) - (31) (95) (341) Write back - (11) - (26) (37) Relating to subsidiaries disposed - (7) (440) - (447) Exchange translation differences 1,069 8 100 145 1,322 At 30 June 2025 16,168 133 1,095 1,374 18,770 Provisions are analysed as: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Current portion (see note 25) 1,289 1,161 1,552 1,341 Non-current portion (see note 29) 17,481 16,871 18,499 19,777 18,770 18,032 20,051 21,118 The provision for commitments, onerous contracts and other guarantees represents the unavoidable costs of meeting these commitments and obligations after deducting the associated, expected future benefits and / or estimated recoverable value. The provision for closure obligations represents the estimated costs to execute integration plans and store closures. The provision for assets retirement obligations represents the present value of the estimated future costs of dismantling and removing fixed assets when they are no longer used and restoring the sites on which they are located. CKHH 2025 Interim Results Financial Statements Page 119 of 197
Page 120
27 Interest bearing loans from non-controlling shareholders At 30 June 2025, 31 December 2024 and 31 December 2023, these loans mainly bear interest at rates at EURIBOR + 2.0%, Stockholm Interbank Offered Rate + 2.0% and Stockholm Interbank Offered Rate + 0.7% per annum. At 1 January 2023, these loans mainly bear interest at rates at EURIBOR + 2.0% and Stockholm Interbank Offered Rate + 0.7% per annum. The carrying amounts of the borrowings approximate their fair values. 28 Pension obligations The Group operates a number of defined benefit and defined contribution plans, the assets of which are held independently of the Group’s assets in trustee administered funds. The Group’s major defined benefit plans are in Hong Kong, the United Kingdom and the Netherlands. The amounts recognised in the consolidated statement of financial position are as follows: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Defined benefit assets (see note 21) 2,535 2,239 1,428 1,311 Defined benefit liabilities 3,289 3,197 3,536 2,730 Net defined benefit liabilities 754 958 2,108 1,419 The amounts recognised in the consolidated statement of financial position are determined as follows: Present value of defined benefit obligations 18,228 16,585 17,965 15,163 Fair value of plan assets 17,477 15,630 15,860 13,750 751 955 2,105 1,413 Restrictions on assets recognised 3 3 3 6 Net defined benefit liabilities 754 958 2,108 1,419 29 Other non-current liabilities 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million Derivative financial instruments Fair value hedges - collar agreements - - 59 - Cash flow hedges Interest rate swaps 40 - - - Other contracts - - 1 - Net investment hedges Cross currency swaps 456 2 465 314 Other derivative financial instruments 148 91 - - Obligations for telecommunications licences and other rights 3,010 3,122 3,994 3,309 Other non-current liabilities 6,291 6,132 6,387 6,333 Liabilities relating to the economic benefits agreements 2,166 2,166 2,166 2,166 Provisions (see note 26) 17,481 16,871 18,499 19,777 29,592 28,384 31,571 31,899 CKHH 2025 Interim Results Financial Statements Page 120 of 197
Page 121
30 Share capital, share premium, perpetual capital securities and capital management (a) Share capital and share premium Share Share Number capital premium Total of shares HK$ million HK$ million HK$ million Authorised: Ordinary shares of HK$1 each 8,000,000,000 8,000 - 8,000 Issued and fully paid: Ordinary shares At 1 January 2023, 31 December 2023, 31 December 2024 and 30 June 2025 3,830,044,500 3,830 242,972 246,802 (b) Perpetual capital securities 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million EUR500 million issued in 2018 - - 4,566 4,561 In December 2018, a wholly owned subsidiary company of the Group issued perpetual capital securities with nominal amount of EUR500 million for cash. The Group has fully redeemed these perpetual capital securities in June 2024. (c) Capital management The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue to provide returns for shareholders and to support the Group’s stability and growth. The Group regularly reviews and manages its capital structure to ensure optimal capital structure to maintain a balance between higher shareholders’ returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions. At 30 June 2025, total equity amounted to HK$675,865 million (31 December 2024: HK$652,592 million; 31 December 2023: HK$670,549 million; 1 January 2023: HK$647,309 million), and consolidated net debt of the Group, excluding loans from non-controlling shareholders which are viewed as quasi equity, was HK$119,222 million (31 December 2024: HK$128,558 million; 31 December 2023: HK$130,585 million; 1 January 2023: HK$132,042 million). The Group’s net debt to net total capital ratio decreased to 14.9% from 16.4% at the end of last year. As additional information, the following table shows the net debt to net total capital ratios calculated on the basis of including loans from non-controlling shareholders and also with the Group’s investments in its listed subsidiaries and associated companies marked to market value at the end of the reporting period. Net debt / Net total capital ratios (i) at: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 A1 - excluding interest-bearing loans from non-controlling shareholders from debt 14.9% 16.4% 16.2% 16.9% A2 - as in A1 above and investments in listed subsidiaries and associated companies marked to market value 16.3% 17.5% 18.0% 18.4% B1 - including interest-bearing loans from non-controlling shareholders as debt 15.4% 16.8% 16.6% 17.2% B2 - as in B1 above and investments in listed subsidiaries and associated companies marked to market value 16.9% 18.0% 18.4% 18.8% (i) Net debt is defined in the consolidated statement of cash flows. Total bank and other debts are defined, for the purpose of “Net debt” calculation, as the total principal amount of bank and other debts and unamortised fair value adjustments arising from acquisitions. Net total capital is defined as total bank and other debts plus total equity and loans from non-controlling shareholders net of total cash, liquid funds and other listed investments. CKHH 2025 Interim Results Financial Statements Page 121 of 197
Page 122
31 Reserves Retained Exchange Hedging profit reserve reserve Others Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 617,240 - 5,332 (345,861) 276,711 At 31 December 2023 629,309 10,604 2,618 (345,298) 297,233 At 31 December 2024 636,053 (6,019) 2,611 (344,732) 287,913 At 30 June 2025 630,444 18,401 2,369 (343,226) 307,988 CKHH 2025 Interim Results Financial Statements Page 122 of 197
Page 123
31 Reserves (continued) Retained Exchange Hedging profit reserve reserve Others (a) Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2025 636,053 (6,019) 2,611 (344,732) 287,913 Profit for the period 852 - - - 852 Other comprehensive income (losses) Changes in fair value of equity instruments at fair value through other comprehensive income - - - 195 195 Changes in fair value of debt instruments at fair value through other comprehensive income - - - 113 113 Remeasurement of defined benefit obligations (79) - - - (79) Exchange gains on translation of foreign operations - 22,188 - - 22,188 Reserves reclassified to profit or loss - (6,520) 40 - (6,480) Losses on cash flow hedges - - (6) - (6) Losses on net investment hedges - (2,800) - - (2,800) Share of other comprehensive income (losses) of associated companies 56 4,425 (186) (17) 4,278 Share of other comprehensive income (losses) of joint ventures 147 7,127 (91) 2 7,185 Tax relating to components of other comprehensive income (losses) (30) - 1 - (29) Other comprehensive income (losses), net of tax 94 24,420 (242) 293 24,565 Transfer of net losses on disposal of equity securities at FVOCI to retained profit (756) - - 756 - Transactions with owners in their capacity as owners: Dividends paid relating to 2024 (5,799) - - - (5,799) Relating to purchase of non-controlling interests - - - 457 457 At 30 June 2025 630,444 18,401 2,369 (343,226) 307,988 Attributable to ordinary shareholders Six months ended 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 123 of 197
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31 Reserves (continued) Retained Exchange Hedging profit reserve reserve Others (a) Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2024 629,309 10,604 2,618 (345,298) 297,233 Profit for the period 10,205 - - - 10,205 Other comprehensive income (losses) Changes in fair value of equity instruments at fair value through other comprehensive income - - - (377) (377) Changes in fair value of debt instruments at fair value through other comprehensive income - - - 19 19 Remeasurement of defined benefit obligations 397 - - - 397 Exchange losses on translation of foreign operations - (3,678) - - (3,678) Losses on cash flow hedges - - (24) - (24) Gains on net investment hedges - 481 - - 481 Losses in other reserves related to subsidiaries disposed during the period transferred directly to retained profit (24) - - 24 - Share of other comprehensive income (losses) of associated companies (150) (2,052) 80 10 (2,112) Share of other comprehensive income (losses) of joint ventures (694) (2,199) 272 - (2,621) Tax relating to components of other comprehensive income (losses) (88) - 2 - (86) Other comprehensive income (losses), net of tax (559) (7,448) 330 (324) (8,001) Transfer of net losses on disposal of equity securities at FVOCI to retained profit (80) - - 80 - Transactions with owners in their capacity as owners: Dividends paid relating to 2023 (6,798) - - - (6,798) At 30 June 2024 632,077 3,156 2,948 (345,542) 292,639 Six months ended 30 June 2024 Attributable to ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 124 of 197
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31 Reserves (continued) Retained Exchange Hedging profit reserve reserve Others (a) Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 617,240 - 5,332 (345,861) 276,711 Profit for the period 11,542 - - - 11,542 Other comprehensive income (losses) Changes in fair value of equity instruments at fair value through other comprehensive income - - - 605 605 Changes in fair value of debt instruments at fair value through other comprehensive income - - - (4) (4) Remeasurement of defined benefit obligations 85 - - - 85 Exchange gains on translation of foreign operations - 8,655 - - 8,655 Losses on cash flow hedges - - (1,132) - (1,132) Losses on net investment hedges - (1,095) - - (1,095) Reclassification adjustments for hedging gains included in profit or loss - - (1,735) - (1,735) Share of other comprehensive income (losses) of associated companies 20 2,208 156 (562) 1,822 Share of other comprehensive income of joint ventures 67 2,720 525 2 3,314 Tax relating to components of other comprehensive income (losses) (29) - (1) - (30) Other comprehensive income (losses), net of tax 143 12,488 (2,187) 41 10,485 Impact of hyperinflation (21) - - - (21) Transfer of gain on disposal of equity securities at FVOCI to retained profit 13 - - (13) - Transactions with owners in their capacity as owners: Dividends paid relating to 2022 (7,989) - - - (7,989) Recognition of put option liabilities arising from business combinations - - - (148) (148) Relating to purchase of non-controlling interests - - - (34) (34) At 30 June 2023 620,928 12,488 3,145 (346,015) 290,546 (a) Other reserves comprise revaluation reserve and other capital reserves. Revaluation reserve deficit amounted to HK$1,470 million as at 30 June 2025 (1 January 2025: HK$2,526 million; 30 June 2024: HK$3,025 million; 1 January 2024: HK$2,835 million; 30 June 2023: HK$2,896 million; 1 January 2023: HK$3,472 million). This reserve includes surplus (deficit) arising from market value revaluations of listed debt securities and listed equity securities. Other capital reserves deficit amounted to HK$341,756 million as at 30 June 2025 (1 January 2025: HK$342,206 million; 30 June 2024: HK$342,517 million; 1 January 2024: HK$342,463 million; 30 June 2023: HK$343,119 million; 1 January 2023: HK$342,389 million). This includes a deficit of HK$341,336 million relating to the fair value of shares of Cheung Kong (Holdings) Limited (the Group’s former holding company), which were cancelled as part of the 2015 reorganisation. Six months ended 30 June 2023 Attributable to ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 125 of 197
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31 Reserves (continued) (b) Set out below are before and after related tax effects of other comprehensive income (losses) for the periods: Six months ended 30 June 2025 Before- Net-of- tax tax amount Tax effect amount HK$ million HK$ million HK$ million Changes in fair value of equity instruments at fair value through other comprehensive income 219 - 219 Changes in fair value of debt instruments at fair value through other comprehensive income 113 - 113 Remeasurement of defined benefit obligations (105) (38) (143) Exchange gains on translation of foreign operations 23,774 - 23,774 Reserves reclassified to profit or loss (6,480) - (6,480) Losses on cash flow hedges (17) 1 (16) Losses on net investment hedges (3,700) - (3,700) Share of other comprehensive income of associated companies 4,680 - 4,680 Share of other comprehensive income of joint ventures 9,355 - 9,355 27,839 (37) 27,802 Six months ended 30 June 2024 Before- Net-of- tax tax amount Tax effect amount HK$ million HK$ million HK$ million Changes in fair value of equity instruments at fair value through other comprehensive income (377) - (377) Changes in fair value of debt instruments at fair value through other comprehensive income 19 - 19 Remeasurement of defined benefit obligations 498 (112) 386 Exchange losses on translation of foreign operations (4,376) - (4,376) Losses on cash flow hedges (27) 2 (25) Gains on net investment hedges 635 - 635 Share of other comprehensive income (losses) of associated companies (2,257) - (2,257) Share of other comprehensive income (losses) of joint ventures (3,246) - (3,246) (9,131) (110) (9,241) Six months ended 30 June 2023 Before- Net-of- tax tax amount Tax effect amount HK$ million HK$ million HK$ million Changes in fair value of equity instruments at fair value through other comprehensive income 605 - 605 Changes in fair value of debt instruments at fair value through other comprehensive income (4) - (4) Remeasurement of defined benefit obligations 101 (36) 65 Exchange gains on translation of foreign operations 8,941 - 8,941 Losses on cash flow hedges (1,145) (1) (1,146) Losses on net investment hedges (1,378) - (1,378) Reclassification adjustments for hedging gains included in profit or loss (1,735) - (1,735) Share of other comprehensive income of associated companies 2,048 - 2,048 Share of other comprehensive income of joint ventures 4,275 - 4,275 11,708 (37) 11,671 CKHH 2025 Interim Results Financial Statements Page 126 of 197
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32 Notes to condensed consolidated statement of cash flows (a) Reconciliation of profit after tax to cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 2025 2024 2023 HK$ million HK$ million HK$ million Profit after tax 4,455 13,557 14,680 Less: share of profits less losses of Associated companies (4,726) (3,908) (4,080) Joint ventures (5,121) (4,633) (3,720) (5,392) 5,016 6,880 Adjustments for: Current tax charge 1,944 2,063 1,573 Deferred tax charge (credit) 1,362 198 (198) Interest expenses and other finance costs 6,321 6,630 5,687 Depreciation and amortisation 19,862 19,826 19,675 EBITDA of Company and subsidiaries (i) 24,097 33,733 33,617 Dividends received from associated companies and joint ventures 4,981 5,707 6,057 Losses (gains) on disposal of fixed assets 20 (24) 70 Losses (gains) on disposals of associated companies and joint ventures (see note 7) 3 13 (226) Losses (gains) on disposal of subsidiaries (see note 32(d)) 3 UK 9,462 - - Italian network business - - (74) Ports business - (364) - A gain on disposal of financial instruments (see note 6(b)(xvii)) - - (1,829) Gains on disposal of unlisted investments - (78) - Customer acquisition and retention costs capitalised in the period (2,004) (1,947) (2,085) Other non-cash items 359 (5) 23 36,918 37,035 35,553 (i) Reconciliation of EBITDA: 2025 2024 2023 HK$ million HK$ million HK$ million EBITDA of Company and subsidiaries 24,097 33,733 33,617 Share of EBITDA of associated companies and joint ventures Share of profits less losses of: Associated companies 4,726 3,908 4,080 Joint ventures 5,121 4,633 3,720 Adjustments for: Depreciation and amortisation 14,092 12,776 11,999 Interest expenses and other finance costs 5,721 5,303 6,048 Current tax charge 2,550 2,288 1,719 Deferred tax charge 849 936 449 Non-controlling interests 277 257 234 33,336 30,101 28,249 EBITDA (see note 6(b)(ii)) 57,433 63,834 61,866 Six months ended 30 June Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 127 of 197
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32 Notes to condensed consolidated statement of cash flows (continued) (b) Changes in working capital 2025 2024 2023 HK$ million HK$ million HK$ million Increase in inventories (901) (1,400) (1,079) Decrease (increase) in trade receivables and other current assets 1,058 1,211 (843) Decrease in trade payables and other current liabilities (3,448) (4,547) (7,570) Other non-cash items 6,378 (493) 2,511 3,087 (5,229) (6,981) (c) Purchase of subsidiary companies The following table summarises the consideration paid and the amounts of the assets acquired and liabilities assumed recognised for acquisitions completed during the periods: 2025 2024 2023 HK$ million HK$ million HK$ million Purchase consideration transferred: Cash and cash equivalents paid - 10 87 Fair value Fixed assets - 4 5 Brand names and other rights - - 9 Deferred tax assets - - 3 Cash and cash equivalents - - 8 Trade receivables and other current assets - - 29 Trade payables and other current liabilities and current tax liabilities - - (31) Bank and other debts - - (2) Pension obligations - - (1) Net identifiable assets acquired - 4 20 Non-controlling interests - - (8) - 4 12 Goodwill - 6 75 Total consideration - 10 87 Net cash outflow arising from acquisition: Cash and cash equivalents paid - 10 87 Cash and cash equivalents acquired - - (8) Total net cash outflow - 10 79 The assets acquired and liabilities assumed are recognised at the acquisition date fair value and are recorded at the consolidation level. For the comparative periods ended 30 June 2024 and 2023, the contributions to the Group’s revenue and profit before tax from these subsidiaries acquired during the period since the respective date of acquisition were not material. The acquisition related costs were not material. Six months ended 30 June Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 128 of 197
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32 Notes to condensed consolidated statement of cash flows (continued) (d) Disposal of subsidiary companies On 31 May 2025, the Group completed the merger of its UK telecommunications operations, 3 UK, with Vodafone Group’s corresponding UK operations to form the combined entity, VodafoneThree. As a result of the transaction, 3 UK and its subsidiaries ceased to be subsidiaries of the Group and were de-consolidated from the Group’s financial statements. The Group now holds a 49% interest in VodafoneThree, which is accounted for as an associated company under the equity method, while Vodafone has a 51% ownership stake. This transaction has been accounted for as a disposal of the Group’s entire interest in 3 UK, coupled with the concurrent acquisition of a 49% stake in VodafoneThree. The fair value of the Group’s 49% interest in VodafoneThree was determined to be HK$40,766 million, derived from the average of five independent mid-point valuation analyses. The fair value assessment incorporated comparable companies analysis (using EBITDA after leases (“EBITDAaL”) and adjusted free cash flow) and discounted cash flow (“DCF”) analysis, based on the combined business’s forward-looking financial plan, including projections for revenue, operating costs, capital expenditures, and terminal value. The five valuations yielded the following estimated fair values for the Group’s 49% interest: HK$35.8 billion, HK$38.5 billion, HK$39.4 billion, HK$44.1 billion and HK$46.1 billion, with the final fair value reflecting the average of these outcomes. Comparative period ended 30 June 2024’s disposal of subsidiary company mainly related to the disposal of the Group’s former non-wholly owned subsidiary Abu Qir Container Terminal Company S.A.E., which became a 41% owned associated company following the disposal. Comparative period ended 30 June 2023’s disposal of subsidiary company mainly related to the disposal of Zefiro Net S.r.l., which became a 50% owned joint venture accordingly. 2025 2024 2023 HK$ million HK$ million HK$ million Total considerations 54,582 1,200 5,126 Cash and cash equivalents received 15,142 464 2,563 Closing cash and working capital adjustments and others (1,326) - - The portion of the consideration consisting of cash and cash equivalents 13,816 464 2,563 Cash and cash equivalents received, net with cash and cash equivalents in the subsidiaries over which control was lost 14,902 333 2,563 Net assets other than cash or cash equivalents in the subsidiaries over which control was lost 70,284 705 5,052 Cash and cash equivalents in the subsidiaries over which control was lost 240 131 - Net assets in the subsidiaries over which control was lost 70,524 836 5,052 Disposal gain (loss) before reclassification of exchange differences (15,942) 364 74 Reserves reclassified to profit or loss 6,480 - - Disposal gain (loss) (9,462) 364 74 Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 129 of 197
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32 Notes to condensed consolidated statement of cash flows (continued) (d) Disposal of subsidiary companies (continued) 2025 2024 2023 HK$ million HK$ million HK$ million Analysis of assets and liabilities over which control was lost: Fixed assets 24,328 4,713 - Right-of-use assets 5,394 730 - Telecommunications licences 21,121 - - Goodwill 3,528 - - Brand names and other rights 5,283 - - Deferred tax assets 9,429 - - Other non-current assets 6,136 - - Trade receivables and other current assets 7,824 91 - Inventories 384 43 - Cash and cash equivalents 240 131 - Assets classified as held for sale - - 6,202 Trade payables and other current liabilities and current tax liabilities (7,233) (513) - Bank and other debts - (2,824) - Leases liabilities (5,133) (820) - Loans from non-controlling shareholders - (92) - Deferred tax liabilities - (35) - Pension obligations - (45) - Other non-current liabilities (777) - - Liabilities directly associated with assets classified as held for sale - - (1,150) Non-controlling interests - (543) - Net assets disposed 70,524 836 5,052 Cash flows of 3 UK disposed of during the current period: Six months ended 30 June 2025 HK$ million Net cash outflow from operating activities (7,210) Net cash outflow from investing activities (1,898) Net cash inflow from financing activities 8,341 Cash flows of subsidiary companies disposed of during the comparative periods are not material for the comparative periods. Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 130 of 197
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32 Notes to condensed consolidated statement of cash flows (continued) (e) Changes in liabilities arising from financing activities The following table sets out an analysis of the cash flows and non-cash flows changes in liabilities arising from financing activities: Interest Liabilities bearing Interest relating loans from free loans to the Bank and non- from non- economic other Lease controlling controlling benefits debts liabilities shareholders shareholders agreements Total HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2025 256,392 64,519 3,471 349 2,166 326,897 Financing cash flows New borrowings 25,832 - - - - 25,832 Repayment of borrowings (39,516) - - - - (39,516) Principal elements of lease payments - (7,956) - - - (7,956) Net loans to non-controlling shareholders - - (8) - - (8) Other changes Amortisation of loan facilities fees and premiums or discounts relating to debts (see note 8) 119 - - - - 119 Amortisation of bank and other debts’ fair value adjustments arising from acquisitions (see note 8(a)) (161) - - - - (161) Increase in lease liabilities from entering into new leases during the period (see note 13(a)) - 7,570 - - - 7,570 Interest on lease liabilities (see note 8) - 1,512 - - - 1,512 Interest element of lease liabilities paid (included in “net cash from operating activities”) - (1,524) - - - (1,524) Remeasurement / write off of lease liabilities - 3,507 - - - 3,507 Relating to subsidiaries disposed (see note 32(d)) - (5,133) - - - (5,133) Exchange translation differences 12,289 5,672 469 - - 18,430 At 30 June 2025 254,955 68,167 3,932 349 2,166 329,569 At 1 January 2024 271,922 67,923 3,245 438 2,166 345,694 Financing cash flows New borrowings 32,341 - - - - 32,341 Repayment of borrowings (19,817) - - - - (19,817) Principal elements of lease payments - (7,370) - - - (7,370) Net loans to non-controlling shareholders - - (2) (19) - (21) Other changes Amortisation of loan facilities fees and premiums or discounts relating to debts (see note 8) 117 - - - - 117 Amortisation of bank and other debts’ fair value adjustments arising from acquisitions (see note 8(a)) (171) - - - - (171) Increase in lease liabilities from entering into new leases during the period (see note 13(a)) - 3,220 - - - 3,220 Interest on lease liabilities (see note 8) - 1,311 - - - 1,311 Interest element of lease liabilities paid (included in “net cash from operating activities”) - (1,320) - - - (1,320) Remeasurement / write off of lease liabilities - 3,349 - - - 3,349 Relating to subsidiaries disposed (see note 32(d)) (2,824) (820) - (92) - (3,736) Exchange translation differences (3,551) (2,187) (102) - - (5,840) At 30 June 2024 278,017 64,106 3,141 327 2,166 347,757 CKHH 2025 Interim Results Financial Statements Page 131 of 197
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32 Notes to condensed consolidated statement of cash flows (continued) (e) Changes in liabilities arising from financing activities (continued) The following table sets out an analysis of the cash flows and non-cash flows changes in liabilities arising from financing activities (continued): Interest Liabilities bearing Interest relating loans from free loans to the Bank and non- from non- economic other Lease controlling controlling benefits debts liabilities shareholders shareholders agreements Total HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 284,326 66,059 2,567 472 2,166 355,590 Financing cash flows New borrowings 38,122 - - - - 38,122 Repayment of borrowings (44,012) - - - - (44,012) Principal elements of lease payments - (7,500) - - - (7,500) Net loans from (to) non-controlling shareholders - - 4 (34) - (30) Other changes Amortisation of loan facilities fees and premiums or discounts relating to debts (see note 8) 119 - - - - 119 Amortisation of bank and other debts’ fair value adjustments arising from acquisitions (see note 8(a)) (170) - - - - (170) Increase in lease liabilities from entering into new leases during the period (see note 13(a)) - 5,858 - - - 5,858 Interest on lease liabilities (see note 8) - 1,244 - - - 1,244 Interest element of lease liabilities paid (included in “net cash from operating activities”) - (1,187) - - - (1,187) Remeasurement / write off of lease liabilities - 3,026 - - - 3,026 Relating to subsidiaries acquired (see note 32(c)) 2 - - - - 2 Exchange translation differences 4,457 1,585 (22) - - 6,020 At 30 June 2023 282,844 69,085 2,549 438 2,166 357,082 CKHH 2025 Interim Results Financial Statements Page 132 of 197
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33 Share-based payments The Company and its subsidiary companies do not have share option scheme as at 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023. Certain of the Company’s associated companies have issued equity-settled and cash-settled share-based payments to certain employees. The aggregate amount of the share-based payments recognised by these companies during the current period and comparative years are not material to the Group’s results. 34 Pledge of assets At 30 June 2025, assets of the Group totalling HK$1,603 million (31 December 2024: HK$1,449 million; 31 December 2023: HK$1,533 million; 1 January 2023: HK$1,442 million) were pledged as security for bank and other debts. 35 Contingent liabilities and guarantees At 30 June 2025, the Company and its subsidiaries provide guarantees in respect of bank and other borrowing facilities to its associated companies and joint ventures of HK$10,697 million (31 December 2024: HK$10,753 million; 31 December 2023: HK$4,560 million; 1 January 2023: HK$4,856 million). The amount utilised by its associated companies and joint ventures are as follows: 30 June 31 December 31 December 1 January 2025 2024 2023 2023 HK$ million HK$ million HK$ million HK$ million To associated companies 8,083 8,444 3,661 3,527 To joint ventures 1,092 - - 1,096 At 30 June 2025, the Group had provided performance and other guarantees of HK$5,533 million (31 December 2024: HK$4,860 million; 31 December 2023: HK$4,115 million; 1 January 2023: HK$5,033 million). 36 Commitments The Group’s outstanding commitments contracted for at 30 June 2025, where material, not provided for in the consolidated financial statements at 30 June 2025 are as follows: Capital commitments (a) Ports and Related Services: HK$367 million (31 December 2024: HK$235 million; 31 December 2023: HK$462 million; 1 January 2023: HK$582 million) (b) 3 Group Europe: HK$166 million (31 December 2024: HK$155 million; 31 December 2023: HK$181 million; 1 January 2023: HK$183 million) (c) Telecommunications, Hong Kong and Asia: HK$803 million (31 December 2024: HK$769 million; 31 December 2023: HK$149 million; 1 January 2023: HK$308 million) 37 Related parties transactions Saved as disclosed elsewhere in these financial statements, transactions between the Group and other related parties during the period are not significant to the Group. The outstanding balances with associated companies and joint ventures are disclosed in notes 17 and 18. Transactions between the Company and its subsidiaries have been eliminated on consolidation. No transactions have been entered with the directors of the Company (being the key management personnel) during the period other than the emoluments paid to them (being the key management personnel compensation). 38 Legal proceedings As at 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023, the Group is not engaged in any material litigation or arbitration proceedings, and no material litigation or claim is known by the Group to be pending or threatened against it. CKHH 2025 Interim Results Financial Statements Page 133 of 197
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39 Fair value measurements (a) Carrying amounts and fair values of financial assets and financial liabilities The fair values of financial assets and financial liabilities, together with the carrying amounts in the consolidated statement of financial position, are as follows: Carrying Fair Classification under amounts values Note IFRS 9 HK$ million HK$ million Financial assets Liquid funds and other listed investments Cash and cash equivalents (included in Managed funds) 20 Amortised cost 47 47 Listed equity securities, Hong Kong 20 FVOCI 589 589 Listed equity securities, outside Hong Kong 20 FVOCI 6 6 Listed debt securities (included in Managed funds) 20 FVOCI 7,013 7,013 Unlisted investments Unlisted equity securities 21 FVOCI 1,944 1,944 Unlisted equity securities 21 Fair value through 392 392 profit or loss (“FVPL”) Unlisted debt securities 21 FVPL 312 312 Derivative financial instruments Cash flow hedges - other contracts 23 Fair value - hedges 1 1 Net investment hedges Forward foreign exchange contracts 23 Fair value - hedges 7 7 Cross currency swaps 21 Fair value - hedges 897 897 Lease receivables 21 Amortised cost 881 881 Cash and cash equivalents 22 Amortised cost 129,613 129,613 Trade receivables 23 Amortised cost 14,993 14,993 Other receivables 23 Amortised cost 12,093 12,093 Amounts due from associated companies 17 Amortised cost 3,292 3,292 Amounts due from joint ventures 18 Amortised cost 17,977 17,977 190,057 190,057 Financial liabilities Bank and other debts (i) 24 Amortised cost 254,955 246,040 Trade payables 25 Amortised cost 22,602 22,602 Derivative financial instruments Cash flow hedges Interest rate swaps 29 Fair value - hedges 40 40 Forward foreign exchange contracts 25 Fair value - hedges 8 8 Other contracts 25 Fair value - hedges 2 2 Net investment hedges Forward foreign exchange contracts 25 Fair value - hedges 1,411 1,411 Cross currency swaps 25 & 29 Fair value - hedges 1,193 1,193 Other derivative financial instruments 29 FVPL 148 148 Interest free loans from non-controlling shareholders 25 Amortised cost 349 349 Expenses and other accruals 25 Amortised cost 31,508 31,508 Other payables 25 Amortised cost 18,782 18,782 Lease liabilities 13 Amortised cost 68,167 68,167 Interest bearing loans from non-controlling shareholders Amortised cost 3,932 3,932 Obligations for telecommunications licences and other rights 25 & 29 Amortised cost 3,980 3,980 Liabilities relating to the economic benefits agreements 29 Amortised cost 2,166 2,166 Amounts due to associated companies 17 Amortised cost 2,921 2,921 Amounts due to joint ventures 18 Amortised cost 217 217 412,381 403,466 (i) 30 June 2025 The fair values of the bank and other debts are based on market quotes or estimated using discounted cash flow calculations based upon the Group’s current incremental borrowing rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. CKHH 2025 Interim Results Financial Statements Page 134 of 197
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39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) Carrying Fair amounts values HK$ million HK$ million Representing: Financial assets measured at Amortised cost 178,896 178,896 FVOCI 9,552 9,552 FVPL 704 704 Fair value - hedges 905 905 190,057 190,057 Financial liabilities measured at Amortised cost 409,579 400,664 FVPL 148 148 Fair value - hedges 2,654 2,654 412,381 403,466 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 135 of 197
Page 136
39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) The fair values of financial assets and financial liabilities, together with the carrying amounts in the consolidated statement of financial position, are as follows (continued): Carrying Fair Classification under amounts values Note IFRS 9 HK$ million HK$ million Financial assets Liquid funds and other listed investments Cash and cash equivalents (included in Managed funds) 20 Amortised cost 34 34 Listed equity securities, Hong Kong 20 FVOCI 536 536 Listed equity securities, outside Hong Kong 20 FVOCI 747 747 Listed debt securities (included in Managed funds) 20 FVOCI 6,825 6,825 Unlisted investments Unlisted equity securities 21 FVOCI 1,933 1,933 Unlisted equity securities 21 FVPL 366 366 Unlisted debt securities 21 FVPL 414 414 Derivative financial instruments Fair value hedges - collar agreements 23 Fair value - hedges 14 14 Cash flow hedges Interest rate swaps 23 Fair value - hedges 7 7 Cross currency interest rate swaps 21 Fair value - hedges 227 227 Forward foreign exchange contracts 23 Fair value - hedges 5 5 Other contracts 23 Fair value - hedges 1 1 Net investment hedges Forward foreign exchange contracts 23 Fair value - hedges 436 436 Cross currency swaps 21 & 23 Fair value - hedges 1,360 1,360 Lease receivables 21 Amortised cost 875 875 Cash and cash equivalents 22 Amortised cost 121,303 121,303 Trade receivables 23 Amortised cost 15,327 15,327 Other receivables 23 Amortised cost 12,169 12,169 Amounts due from associated companies 17 Amortised cost 1,671 1,671 Amounts due from joint ventures 18 Amortised cost 16,953 16,953 181,203 181,203 Financial liabilities Bank and other debts (i) 24 Amortised cost 256,392 239,786 Trade payables 25 Amortised cost 21,861 21,861 Derivative financial instruments Cash flow hedges Other contracts 25 Fair value - hedges 5 5 Net investment hedges Forward foreign exchange contracts 25 Fair value - hedges 155 155 Cross currency swaps 25 & 29 Fair value - hedges 240 240 Other derivative financial instruments 29 FVPL 91 91 Interest free loans from non-controlling shareholders 25 Amortised cost 349 349 Expenses and other accruals 25 Amortised cost 33,411 33,411 Other payables 25 Amortised cost 19,104 19,104 Lease liabilities 13 Amortised cost 64,519 64,519 Interest bearing loans from non-controlling shareholders Amortised cost 3,471 3,471 Obligations for telecommunications licences and other rights 25 & 29 Amortised cost 3,983 3,983 Liabilities relating to the economic benefits agreements 29 Amortised cost 2,166 2,166 Amounts due to associated companies 17 Amortised cost 535 535 Amounts due to joint ventures 18 Amortised cost 270 270 406,552 389,946 (i) 31 December 2024 The fair values of the bank and other debts are based on market quotes or estimated using discounted cash flow calculations based upon the Group’s current incremental borrowing rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. CKHH 2025 Interim Results Financial Statements Page 136 of 197
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39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) Carrying Fair amounts values HK$ million HK$ million Representing: Financial assets measured at Amortised cost 168,332 168,332 FVOCI 10,041 10,041 FVPL 780 780 Fair value - hedges 2,050 2,050 181,203 181,203 Financial liabilities measured at Amortised cost 406,061 389,455 FVPL 91 91 Fair value - hedges 400 400 406,552 389,946 31 December 2024 CKHH 2025 Interim Results Financial Statements Page 137 of 197
Page 138
39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) The fair values of financial assets and financial liabilities, together with the carrying amounts in the consolidated statement of financial position, are as follows (continued): Carrying Fair Classification under amounts values Note IFRS 9 HK$ million HK$ million Financial assets Liquid funds and other listed investments Cash and cash equivalents (included in Managed funds) 20 Amortised cost 50 50 Listed equity securities, Hong Kong 20 FVOCI 608 608 Listed equity securities, outside Hong Kong 20 FVOCI 8,589 8,589 Listed debt securities (included in Managed funds) 20 FVOCI 6,539 6,539 Unlisted investments Unlisted equity securities 21 FVOCI 2,189 2,189 Unlisted equity securities 21 FVPL 369 369 Unlisted debt securities 21 FVPL 604 604 Derivative financial instruments Cash flow hedges Interest rate swaps 21 Fair value - hedges 52 52 Cross currency interest rate swaps 21 Fair value - hedges 150 150 Other contracts 23 Fair value - hedges 26 26 Net investment hedges Forward foreign exchange contracts 23 Fair value - hedges 201 201 Cross currency swaps 21 & 23 Fair value - hedges 908 908 Lease receivables 21 Amortised cost 507 507 Cash and cash equivalents 22 Amortised cost 127,323 127,323 Trade receivables 23 Amortised cost 16,297 16,297 Other receivables 23 Amortised cost 13,491 13,491 Amounts due from associated companies 17 Amortised cost 3,435 3,435 Amounts due from joint ventures 18 Amortised cost 22,377 22,377 203,715 203,715 Financial liabilities Bank and other debts (i) 24 Amortised cost 271,922 258,853 Trade payables 25 Amortised cost 23,017 23,017 Derivative financial instruments Fair value hedges - collar agreements 25 & 29 Fair value - hedges 356 356 Cash flow hedges Forward foreign exchange contracts 25 Fair value - hedges 2 2 Other contracts 25 & 29 Fair value - hedges 114 114 Net investment hedges Forward foreign exchange contracts 25 Fair value - hedges 1,072 1,072 Cross currency swaps 29 Fair value - hedges 465 465 Interest free loans from non-controlling shareholders 25 Amortised cost 438 438 Expenses and other accruals 25 Amortised cost 36,471 36,471 Other payables 25 Amortised cost 16,888 16,888 Lease liabilities 13 Amortised cost 67,923 67,923 Interest bearing loans from non-controlling shareholders Amortised cost 3,245 3,245 Obligations for telecommunications licences and other rights 25 & 29 Amortised cost 4,615 4,615 Liabilities relating to the economic benefits agreements 29 Amortised cost 2,166 2,166 Amounts due to associated companies 17 Amortised cost 543 543 Amounts due to joint ventures 18 Amortised cost 310 310 429,547 416,478 (i) The fair values of the bank and other debts are based on market quotes or estimated using discounted cash flow calculations based upon the Group’s current incremental borrowing rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 138 of 197
Page 139
39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) Carrying Fair amounts values HK$ million HK$ million Representing: Financial assets measured at Amortised cost 183,480 183,480 FVOCI 17,925 17,925 FVPL 973 973 Fair value - hedges 1,337 1,337 203,715 203,715 Financial liabilities measured at Amortised cost 427,538 414,469 Fair value - hedges 2,009 2,009 429,547 416,478 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 139 of 197
Page 140
39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) The fair values of financial assets and financial liabilities, together with the carrying amounts in the consolidated statement of financial position, are as follows (continued): Carrying Fair Classification under amounts values Note IFRS 9 HK$ million HK$ million Financial assets Liquid funds and other listed investments Cash and cash equivalents (included in Managed funds) 20 Amortised cost 40 40 Listed equity securities, Hong Kong 20 FVOCI 608 608 Listed equity securities, outside Hong Kong 20 FVOCI 8,880 8,880 Fair value hedges - collar agreements 20 Fair value - hedges 216 216 Listed debt securities (included in Managed funds) 20 FVOCI 6,359 6,359 Unlisted investments Unlisted equity securities 21 FVOCI 2,451 2,451 Unlisted equity securities 21 FVPL 417 417 Unlisted debt securities 21 FVPL 555 555 Derivative financial instruments Cash flow hedges Interest rate swaps 21 & 23 Fair value - hedges 237 237 Cross currency interest rate swaps 21 & 23 Fair value - hedges 754 754 Forward foreign exchange contracts 23 Fair value - hedges 1 1 Other contracts 21 & 23 Fair value - hedges 3,248 3,248 Net investment hedges Cross currency interest rate swaps 23 Fair value - hedges 112 112 Forward foreign exchange contracts 23 Fair value - hedges 44 44 Cross currency swaps 21 & 23 Fair value - hedges 1,173 1,173 Lease receivables 21 Amortised cost 542 542 Cash and cash equivalents 22 Amortised cost 138,085 138,085 Trade receivables 23 Amortised cost 14,945 14,945 Other receivables 23 Amortised cost 13,433 13,433 Amounts due from associated companies 17 Amortised cost 3,542 3,542 Amounts due from joint ventures 18 Amortised cost 29,792 29,792 225,434 225,434 Financial liabilities Bank and other debts (i) 24 Amortised cost 284,326 265,418 Trade payables 25 Amortised cost 21,356 21,356 Derivative financial instruments Cash flow hedges Forward foreign exchange contracts 25 Fair value - hedges 2 2 Other contracts 25 Fair value - hedges 151 151 Net investment hedges Forward foreign exchange contracts 25 Fair value - hedges 891 891 Cross currency swaps 29 Fair value - hedges 314 314 Other derivative financial instruments 25 FVPL 795 795 Interest free loans from non-controlling shareholders 25 Amortised cost 472 472 Expenses and other accruals 25 Amortised cost 35,995 35,995 Other payables 25 Amortised cost 21,419 21,419 Lease liabilities 13 Amortised cost 66,059 66,059 Interest bearing loans from non-controlling shareholders Amortised cost 2,567 2,567 Obligations for telecommunications licences and other rights 25 & 29 Amortised cost 3,989 3,989 Liabilities relating to the economic benefits agreements 29 Amortised cost 2,166 2,166 Amounts due to associated companies 17 Amortised cost 569 569 Amounts due to joint ventures 18 Amortised cost 319 319 441,390 422,482 (i) The fair values of the bank and other debts are based on market quotes or estimated using discounted cash flow calculations based upon the Group’s current incremental borrowing rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. 1 January 2023 CKHH 2025 Interim Results Financial Statements Page 140 of 197
Page 141
39 Fair value measurements (continued) (a) Carrying amounts and fair values of financial assets and financial liabilities (continued) Carrying Fair amounts values HK$ million HK$ million Representing: Financial assets measured at Amortised cost 200,379 200,379 FVOCI 18,298 18,298 FVPL 972 972 Fair value - hedges 5,785 5,785 225,434 225,434 Financial liabilities measured at Amortised cost 439,237 420,329 FVPL 795 795 Fair value - hedges 1,358 1,358 441,390 422,482 1 January 2023 CKHH 2025 Interim Results Financial Statements Page 141 of 197
Page 142
39 Fair value measurements (continued) (b) Financial assets and financial liabilities measured at fair value Fair value hierarchy The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3: Inputs for the assets or liabilities that are not based on observable market data (i.e. unobservable inputs). Level 1 Level 2 Level 3 Total Note HK$ million HK$ million HK$ million HK$ million Financial assets Liquid funds and other listed investments Listed equity securities, Hong Kong 20 589 - - 589 Listed equity securities, outside Hong Kong 20 6 - - 6 Listed debt securities (included in Managed funds) 20 7,013 - - 7,013 Unlisted investments Unlisted equity securities - FVOCI 21 - - 1,944 1,944 Unlisted equity securities - FVPL 21 - 46 346 392 Unlisted debt securities 21 - - 312 312 Derivative financial instruments Cash flow hedges - other contracts 23 - 1 - 1 Net investment hedges Forward foreign exchange contracts 23 - 7 - 7 Cross currency swaps 21 - 897 - 897 7,608 951 2,602 11,161 Financial liabilities Derivative financial instruments Cash flow hedges Interest rate swaps 29 - 40 - 40 Forward foreign exchange contracts 25 - 8 - 8 Other contracts 25 - 2 - 2 Net investment hedges Forward foreign exchange contracts 25 - 1,411 - 1,411 Cross currency swaps 25 & 29 - 1,193 - 1,193 Other derivative financial instruments 29 - 148 - 148 - 2,802 - 2,802 30 June 2025 CKHH 2025 Interim Results Financial Statements Page 142 of 197
Page 143
39 Fair value measurements (continued) (b) Financial assets and financial liabilities measured at fair value (continued) Fair value hierarchy (continued) Level 1 Level 2 Level 3 Total Note HK$ million HK$ million HK$ million HK$ million Financial assets Liquid funds and other listed investments Listed equity securities, Hong Kong 20 536 - - 536 Listed equity securities, outside Hong Kong 20 747 - - 747 Listed debt securities (included in Managed funds) 20 6,825 - - 6,825 Unlisted investments Unlisted equity securities - FVOCI 21 - - 1,933 1,933 Unlisted equity securities - FVPL 21 - 46 320 366 Unlisted debt securities 21 - - 414 414 Derivative financial instruments Fair value hedges - collar agreements 23 - - 14 14 Cash flow hedges Interest rate swaps 23 - 7 - 7 Cross currency interest rate swaps 21 - 227 - 227 Forward foreign exchange contracts 23 - 5 - 5 Other contracts 23 - 1 - 1 Net investment hedges Forward foreign exchange contracts 23 - 436 - 436 Cross currency swaps 21 & 23 - 1,360 - 1,360 8,108 2,082 2,681 12,871 Financial liabilities Derivative financial instruments Cash flow hedges Other contracts 25 - 5 - 5 Net investment hedges Forward foreign exchange contracts 25 - 155 - 155 Cross currency swaps 25 & 29 - 240 - 240 Other derivative financial instruments 29 - 91 - 91 - 491 - 491 31 December 2024 CKHH 2025 Interim Results Financial Statements Page 143 of 197
Page 144
39 Fair value measurements (continued) (b) Financial assets and financial liabilities measured at fair value (continued) Fair value hierarchy (continued) Level 1 Level 2 Level 3 Total Note HK$ million HK$ million HK$ million HK$ million Financial assets Liquid funds and other listed investments Listed equity securities, Hong Kong 20 608 - - 608 Listed equity securities, outside Hong Kong 20 8,589 - - 8,589 Listed debt securities (included in Managed funds) 20 6,539 - - 6,539 Unlisted investments Unlisted equity securities - FVOCI 21 - - 2,189 2,189 Unlisted equity securities - FVPL 21 - 46 323 369 Unlisted debt securities 21 - - 604 604 Derivative financial instruments Cash flow hedges Interest rate swaps 21 - 52 - 52 Cross currency interest rate swaps 21 - 150 - 150 Other contracts 23 - 26 - 26 Net investment hedges Forward foreign exchange contracts 23 - 201 - 201 Cross currency swaps 21 & 23 - 908 - 908 15,736 1,383 3,116 20,235 Financial liabilities Derivative financial instruments Fair value hedges - collar agreement 25 & 29 - - 356 356 Cash flow hedges Forward foreign exchange contracts 25 - 2 - 2 Other contracts 25 & 29 - 114 - 114 Net investment hedges Forward foreign exchange contracts 25 - 1,072 - 1,072 Cross currency swaps 29 - 465 - 465 - 1,653 356 2,009 31 December 2023 CKHH 2025 Interim Results Financial Statements Page 144 of 197
Page 145
39 Fair value measurements (continued) (b) Financial assets and financial liabilities measured at fair value (continued) Fair value hierarchy (continued) Level 1 Level 2 Level 3 Total Note HK$ million HK$ million HK$ million HK$ million Financial assets Liquid funds and other listed investments Listed equity securities, Hong Kong 20 608 - - 608 Listed equity securities, outside Hong Kong 20 8,880 - - 8,880 Fair value hedges - collar agreement 20 - - 216 216 Listed debt securities (included in Managed funds) 20 6,359 - - 6,359 Unlisted investments Unlisted equity securities - FVOCI 21 - - 2,451 2,451 Unlisted equity securities - FVPL 21 - 46 371 417 Unlisted debt securities 21 - - 555 555 Derivative financial instruments Cash flow hedges Interest rate swaps 21 & 23 - 237 - 237 Cross currency interest rate swaps 21 & 23 - 754 - 754 Forward foreign exchange contracts 23 - 1 - 1 Other contracts 21 & 23 - 3,248 - 3,248 Net investment hedges Cross currency interest rate swaps 23 - 112 - 112 Forward foreign exchange contracts 23 - 44 - 44 Cross currency swaps 21 & 23 - 1,173 - 1,173 15,847 5,615 3,593 25,055 Financial liabilities Derivative financial instruments Cash flow hedges Forward foreign exchange contracts 25 - 2 - 2 Other contracts 25 - 151 - 151 Net investment hedges Forward foreign exchange contracts 25 - 891 - 891 Cross currency swaps 29 - 314 - 314 Other derivative financial instruments 25 - 795 - 795 - 2,153 - 2,153 The fair value of financial assets and financial liabilities that are not traded in active market is determined by using valuation techniques. Specific valuation techniques used to value financial assets and financial liabilities include discounted cash flow analysis, are used to determine fair value for the financial assets and financial liabilities. During the period / year ended 30 June 2025, 31 December 2024 and 2023, there were no transfer between the Level 1 and Level 2 fair value measurements, and no transfer into or out of Level 3 from or to Level 1 or Level 2 fair value measurements. 1 January 2023 CKHH 2025 Interim Results Financial Statements Page 145 of 197
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39 Fair value measurements (continued) (b) Financial assets and financial liabilities measured at fair value (continued) Level 3 fair values The movements of the balance of financial assets and financial liabilities measured at fair value based on Level 3 are as follows: 2025 2024 2023 HK$ million HK$ million HK$ million At 1 January 2,681 2,760 3,593 Total gains (losses) recognised in Income statement (143) 6 (5) Other comprehensive income (4) 527 (1,141) Additions 60 21 39 Disposals (27) (183) (74) Exchange translation differences 35 (10) 20 At 30 June 2,602 3,121 2,432 Total gains (losses) recognised in income statement relating to those financial assets and financial liabilities held at the end of the reporting period (143) 6 (5) The fair value of financial assets and financial liabilities that are grouped under Level 3 is determined by using valuation techniques including discounted cash flow analysis. In determining fair value, specific valuation techniques are used with reference to inputs such as dividend stream and other specific input relevant to those particular financial assets and financial liabilities. Changing unobservable inputs used in Level 3 valuation to reasonable alternative assumptions would not have significant impact on the Group’s profit or loss. 40 Subsequent events Saved as disclosed, no event occurring up to the date of approval of the 2025 Interim Financial Statements has been identified that may require material adjustment of, or disclosure in, these financial statements. 41 US dollar equivalents Amounts in these financial statements are stated in Hong Kong dollar (HK$), the functional currency of the Company. The translation into US dollar (US$) of these financial statements as of, and for the six months ended 30 June 2025, is for convenience only and has been made at the rate of HK$7.8 to US$1. This translation should not be construed as a representation that the Hong Kong dollar amounts actually represented have been, or could be, converted into US dollar at this or any other rate. 42 Rounding of amounts All amounts disclosed in the financial statements and notes have been rounded off to the nearest million currency units unless otherwise stated. Six months ended 30 June CKHH 2025 Interim Results Financial Statements Page 146 of 197
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43 Significant judgements, estimates and assumptions In applying the Group’s accounting policies which are disclosed on note 44, the directors are required to make judgements that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated judgements and assumptions are based on historical experience and other factors that are considered to be relevant and reasonable under the circumstance. Although our current estimates contemplate current and, as applicable, expected future conditions, it is reasonably possible that actual achievements, results, performance or other future events or conditions could differ from those on which the estimates are based. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. (a) Significant judgements in applying the Group’s accounting policies The following are the significant judgements, apart from those involving estimations (which are presented separately below), that the directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in financial statements. (i) Basis of consolidation and classification of investee entities The determination if the Group has control, joint control or significant influence over another entity will require exercise of judgement under certain circumstances. The Company controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The Group also considers, in particular, whether it obtains benefits, including non-financial benefits, from its power to control the entity. As such, the classification of the entity as a subsidiary, a joint venture, a joint operation, an associated company or a cost investment might require the application of judgement through the analysis of various indicators, such as the practical ability to direct the relevant activities of the investee, the participation in policy-making processes of the investee, the representation on the board of directors or equivalent governing body of the investee, the percentage of ownership interest held in the investee, and various other factors including, if relevant, the existence of agreement with other shareholders, applicable statutes and regulations and their requirements. (ii) Allocation of revenue for bundled telecommunications transactions with customers The Group has bundled transactions under contract with customers including sales of both services and hardware (for example handsets). Revenue is allocated to the respective element in an amount that reflects the consideration to which the Group expects to be entitled in exchange for the services and device. Device revenue is recognised at the inception of the contract upon delivery to the customer and services revenue is recognised throughout the contract period as the services are provided. Significant judgement is required in assessing fair values of both of these elements by considering inter alia, standalone selling price, the consideration to which the Group expects to be entitled in exchange for transferring the services and hardware to the customer, and other relevant observable market data. Changes in the allocation may cause the revenue recognised for sales of services and hardware to change individually but not the total bundled revenue from a specific customer throughout its contract term. The Group periodically re-assesses the allocation of the elements as a result of changes in market conditions. (iii) Determination of lease term Lease term is the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has lease contracts that include extension and termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. In determining the lease term, the Group considers all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The following factors are normally the most relevant: • If there are significant penalties to terminate (or not to extend), the Group is typically reasonably certain to extend (or not to terminate). • If any leasehold improvements are expected to have a significant remaining value, the Group is typically reasonably certain to extend (or not to terminate). • Otherwise, the Group considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset. CKHH 2025 Interim Results Financial Statements Page 147 of 197
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43 Significant judgements, estimates and assumptions (continued) (a) Significant judgements in applying the Group’s accounting policies (continued) (iii) Determination of lease term (continued) The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. (iv) Business combinations As disclosed in note 44(a)(iv), the Group applies the provisions of IFRS 3 to transactions and other events that meet the definition of a business combination within the scope of IFRS 3. When the Group completes a business combination, the identifiable assets acquired and the liabilities assumed, including intangible assets, contingent liabilities and commitments, are recognised at their fair value. Judgement is required to determine the fair values of the assets acquired, the liabilities assumed, the date of acquisition, and the purchase consideration, and on the allocation of the purchase consideration to the identifiable assets and liabilities. If the purchase consideration exceeds the fair value of the net assets acquired then the incremental amount paid is recognised as goodwill. If the purchase price consideration is lower than the fair value of the net assets acquired then the difference is recorded as a gain in the consolidated income statement. Allocation of the purchase consideration between finite lived assets and indefinite lived assets such as goodwill affects the subsequent results of the Group as finite lived intangible assets are amortised, whereas indefinite lived intangible assets, including goodwill, are not amortised. (b) Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its estimates and assumptions on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Revisions to accounting estimates and assumptions are recognised prospectively and could impact fair value and carrying amounts of assets and liabilities, amount and timing of results of operations and cash flows in future periods. (i) Impairment of goodwill and long-lived assets Goodwill and intangible assets that have an indefinite useful life (including telecommunication licences and brand names) are not subject to amortisation and are tested for impairment annually and when there is an indication that the asset may be impaired. Other assets are reviewed for impairment to determine whether there is any indication that the carrying value of these assets may not be recoverable and have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. In assessing whether these assets have suffered any impairment, the carrying value of the asset or its respective business unit, including the goodwill, is compared with its recoverable amount, which is the higher of the fair value less costs of disposal and value-in-use. Fair value is derived, when available and appropriate, by making reference to performance metrics (such as revenue, EBITDA, earnings) and valuation multiples (such as Enterprise value / EBITDA, Enterprise value / Sales, Price / Earnings) of completed transactions of comparable businesses or comparable public companies, or by making reference to traded prices and with consideration for possible premiums, or is measured using discounted cash flow projections (Level 3 of the IFRS 13 fair value hierarchy). The selection of comparable companies requires management judgement and is based on a number of factors, including comparable companies’ location, sizes, growth rates, industries, and development stages. In determining the value-in-use of the investment, discounted cash flow models will be used to estimate the present value of the estimated future cash flows expected to be generated from the operations and from the ultimate disposal of the investment. The cash flows used in the financial projections (discounted cash flow models) are based on the latest approved financial budgets for the next five years. The Group prepared the financial budgets reflecting current and prior year performances and experience, market development expectations, including the expected market share and growth momentum, and where available and appropriate, observable market data. There are a number of estimates and assumptions involved for the preparation of the budget, the cash flow projections for the period covered by the approved budget and the estimated terminal value at the end of the budget period. Significant estimates and assumptions inherent in the discounted cash flow models include the amount and timing of future cash flows attributable to the respective business unit. Other key estimates and assumptions, where applicable, include the respective business unit’s projected revenue, costs, gross margin, inventory level, working capital and capital investments, as well as the discount rate and long term growth rate applied, and the estimated terminal value assumptions. CKHH 2025 Interim Results Financial Statements Page 148 of 197
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43 Significant judgements, estimates and assumptions (continued) (b) Key sources of estimation uncertainty (continued) (i) Impairment of goodwill and long-lived assets (continued) It is reasonably possible that the judgements, estimates and assumptions described above could change in future periods. Further, unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Changes to the judgements, estimates and assumptions can significantly affect the carrying amount of the asset in future periods. (ii) Impairment assessment on investment accounted for using equity method Investments accounted for using equity method are subject to impairment testing requirements. The requirements to test for impairment are applied to the net investment in the equity accounted investee. Fair value adjustments and goodwill recognised on acquisitions of equity-accounted investees are not recognised separately. Goodwill recognised on acquisitions of an equity- accounted investee is not subject to annual impairment test. Instead, after applying equity accounting method, the net investment is tested for impairment when there is an indication of possible impairment. The guidance in IAS 28 “Investments in Associates and Joint Ventures” is used to determine whether it is necessary to perform an impairment test for investments in equity-accounted investees. If there is an indication of impairment, then the impairment test applied follows the principles in IAS 36 “Impairment of Assets”. In assessing whether these assets have suffered any impairment, the net investment is compared with its recoverable amount, which is the higher of the fair value less costs of disposal and value-in-use. Fair value is derived, when available and appropriate, by making reference to performance metrics (such as revenue, EBITDA, earnings) and valuation multiples (such as Enterprise value / EBITDA, Enterprise value / Sales, Price / Earnings) of completed transactions of comparable businesses or comparable public companies, or by making reference to traded prices and with consideration for possible premiums, or, where financial projections are available, is measured using discounted cash flow projections (Level 3 of the IFRS 13 fair value hierarchy). The selection of comparable companies requires management judgement and is based on a number of factors, including comparable companies’ location, sizes, growth rates, industries, and development stages. In determining the value-in-use of the investment in an equity-accounted investee, discounted cash flow models will be used to estimate (i) the Group’s share of the present value of the estimated future cash flows expected to be generated by the associated company or joint venture, including the cash flows from the operations of the associated company or joint venture and from the ultimate disposal of the investment; or (ii) the present value of the estimated future cash flows to the Group expected to arise from dividends to be received from the investment and from its ultimate disposal. Significant estimates and assumptions inherent in the discounted cash flow models include the amount and timing of future cash flows attributable to the estimated future cash flows expected to be generated by the associated company or joint venture, including the cash flows from the operations of the associated company or joint venture, the present value of the estimated future cash flows to the Group expected to arise from dividends to be received from the investment and the ultimate disposal of the investment. Other key estimates and assumptions, where applicable, include estimates of the investee’s projected revenue, costs, gross margin, inventory level, working capital and capital investments, as well as the discount rate and long term growth rate applied, and, where applicable, dividend yield, and the estimated terminal value assumptions. It is reasonably possible that the judgements, estimates and assumptions described above could change in future periods. Further, unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Changes to the judgements, estimates and assumptions can significantly affect the carrying amount of the investment in future periods. (iii) Pension costs and estimation of defined benefit pension obligation The Group operates several defined benefit plans. Pension costs for defined benefit plans are assessed using the projected unit credit method in accordance with IAS 19, “Employee Benefits”. Under this method, the cost of providing pensions is charged to the consolidated income statement so as to spread the regular cost over the future service lives of employees in accordance with the advice of the actuaries who carry out a full valuation of the plans. The liability or asset recognised in the consolidated statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of the plan assets. The present value of the defined benefit obligation is measured by discounting the estimated future cash outflows using interest rates determined by reference to market yields at the end of the reporting period based on government agency or high quality corporate bonds with currency and term similar to the estimated term of benefit obligations. Remeasurements arising from defined benefit plans are recognised in other comprehensive income in the period in which they occur and reflected immediately in retained profit. Remeasurements comprise actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability (asset)) and any change in the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefit liability (asset)). Management appoints actuaries to carry out full valuations of these pension plans to determine the pension obligations that are required to be disclosed and accounted for in the financial statements in accordance with the IFRS requirements. CKHH 2025 Interim Results Financial Statements Page 149 of 197
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43 Significant judgements, estimates and assumptions (continued) (b) Key sources of estimation uncertainty (continued) (iii) Pension costs and estimation of defined benefit pension obligation (continued) The actuaries use assumptions and estimates in determining the fair value of the defined benefit plans and evaluate and update these assumptions on an annual basis. Judgement is required to determine the principal actuarial assumptions to determine the present value of defined benefit obligations and service costs. Changes to the principal actuarial assumptions can significantly affect the present value of plan obligations and service costs in future periods. (iv) Provisions for commitments, onerous contracts and other guarantees The Group has entered into a number of procurement, supply and other contracts related to specific assets in the ordinary course of its business and provided guarantees in respect of bank and other borrowing facilities to associated companies and joint ventures. Where the unavoidable costs of meeting the obligations under these procurement and supply contracts exceed the associated, expected future net benefits, an onerous contract provision is recognised, or where the borrowing of associated companies and joint ventures are assessed to be unable to repay the indebtedness that the Group has guaranteed, a provision is recognised. The calculation of these provisions will involve the use of estimates and assumptions. These onerous provisions are calculated by taking the unavoidable costs that will be incurred under the contract and deducting any estimate revenues or predicted income to be derived from the assets, or by taking the unavoidable costs that will be incurred under the guarantee and deducting any estimated recoverable value from the investment in such associated companies and joint ventures. (v) Provision for income tax and recognition of deferred tax asset The Group is subject to income taxes in numerous jurisdictions. Significant judgement and estimate are required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were previously recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. Deferred tax assets are recognised to the extent it is probable that future taxable profits will be available against which the deductible temporary differences and the carry forward of unused tax losses and tax credits can be utilised, based on all available evidence. Recognition primarily involves judgement regarding the future financial performance of the particular legal entity or tax group. A variety of other factors are also evaluated in considering whether there is convincing evidence that it is probable that some portion or all of the deferred tax assets will ultimately be realised, such as the existence of taxable temporary differences, group relief, tax planning strategies and the periods in which estimated tax losses can be utilised. The ultimate realisation of deferred tax assets recognised for certain of the Group’s businesses depends principally on these businesses maintaining profitability and generating sufficient taxable profits to utilise the underlying unused tax losses. It may be necessary for some or all of the deferred tax assets recognised to be reduced and charged to the consolidated income statement if there is a significant adverse change in the projected performance and resulting projected taxable profits of these businesses. Judgement is required to determine key assumptions adopted in the taxable profit and loss projections and changes to key assumptions used and estimates made can significantly affect these taxable profit and loss projections. (vi) Estimation of useful life: Fixed assets Depreciation of operating assets constitutes a substantial operating cost for the Group. The cost of fixed assets is charged as depreciation expense over the estimated useful lives of the respective assets using the straight-line method. The Group periodically reviews changes in technology and industry conditions, asset retirement activity and residual values to determine adjustments to estimated remaining useful lives and depreciation rates. Actual economic lives may differ from estimated useful lives. Periodic reviews could result in a change in depreciable lives and therefore depreciation expense in future periods. (vii) Estimation of useful life: Telecommunications licences, other licences, brand names, trademarks and other rights Telecommunications licences, other licences, brand names, trademarks and other rights with a finite useful life are carried at cost less accumulated amortisation and are reviewed for impairment annually. Telecommunications licences, other licences, brand names, trademarks and other rights that are considered to have an indefinite useful life are not amortised and are tested for impairment annually and when there is an indication that they may be impaired. Certain brand names related to Retail and Telecommunications are considered to have an indefinite useful life as there is no foreseeable limit to the period over which they are expected to generate net cash inflows. Judgement is required to estimate the useful lives of the telecommunications licences, other licences, brand names, trademarks and other rights. The actual economic lives of these assets may differ from the current contracted or expected usage periods, which could impact the amount of amortisation expense charged to the income statement. In addition, governments from time to time revise the terms of licences to change, amongst other terms, the contracted or expected licence period, which could also impact the amount of amortisation expense charged to the consolidated income statement. CKHH 2025 Interim Results Financial Statements Page 150 of 197
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43 Significant judgements, estimates and assumptions (continued) (b) Key sources of estimation uncertainty (continued) (viii) Estimation of the amortisation period: Customer acquisition and retention costs In accordance with IFRS 15, customer acquisition and retention costs, which comprise the net costs to acquire and retain customers, are expensed and recognised in the consolidated income statement in the period in which they are incurred, where (i) the costs are incurred; (ii) the costs are incremental of obtaining a contract and they are expected to be recovered; and (iii) the costs relate directly to the contract, generate resources used in satisfying the contract and are expected to be recovered, then they are capitalised and amortised over the customer contract period. Appropriate allowances are recognised if the carrying amounts of the capitalised costs exceed the remaining amount that the Group expects to receive less any directly related costs that have not been recognised as expenses. Judgement is required to determine the amount of the provision and the amortisation period. The actual amount to be received from the customer and customer period may differ from the expected amount and the contract periods, which could impact the amount of expense charged to the consolidated income statement. (ix) Estimation of fair value of the Group’s 49% interest in VodafoneThree at the time of its constitution On 31 May 2025, the Group completed the merger of its UK telecommunications operations, 3UK, with Vodafone Group’s corresponding UK operations to form the combined entity, VodafoneThree. As a result of the transaction, 3UK and its subsidiaries ceased to be subsidiaries of the Group and were de-consolidated from the Group’s financial statements. The Group now holds a 49% interest in VodafoneThree, which is accounted for as an associated company under the equity method, while Vodafone has a 51% ownership stake. This transaction has been accounted for as a disposal of the Group’s entire interest in 3UK, coupled with the concurrent acquisition of a 49% stake in VodafoneThree. The fair value of the Group’s 49% interest in VodafoneThree was determined to be HK$40,766 million, derived from the average of five independent mid-point valuation analyses. The fair value assessment incorporated comparable companies analysis (using EBITDAaL and adjusted free cash flow) and DCF analysis, based on the combined business’s forward-looking financial plan, including projections for revenue, operating costs, capital expenditures, and terminal value. The five valuations yielded the following estimated fair values for the Group’s 49% interest: HK$35.8 billion, HK$38.5 billion, HK$39.4 billion, HK$44.1 billion and HK$46.1 billion, with the final fair value reflecting the average of these outcomes. The valuation process required significant judgement, particularly in selecting appropriate peer companies for benchmarking, considering factors such as market position, growth profile, and geographic focus, and determining key assumptions in the DCF model, including discount rates, long-term growth rates, and cash flow projections. Given the inherent uncertainties in these estimates, alternative judgements or assumptions could result in a materially different fair value, which would impact the gain or loss recognised on the disposal of 3UK. (c) Climate-related matters The Group considers climate-related matters in estimates and assumptions, where appropriate. This assessment includes a wide range of possible impacts on the Group due to both physical and transition risks. Even though the Group believes its business model and products will still be viable after the transition to a low-carbon economy, climate-related matters increase the uncertainty in estimates and assumptions underpinning the financial statements. Even though climate-related risks might not currently have a significant impact on measurement, the Group is closely monitoring relevant changes and developments, such as new climate-related legislation. CKHH 2025 Interim Results Financial Statements Page 151 of 197
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44 Summary of material accounting policies (a) Summary of material accounting policies Set out below is a summary of the Company’s material accounting policies applicable in the preparation of financial statements to the extent they have not already been disclosed in the other notes elsewhere in these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated. (i) Subsidiary companies Subsidiaries are entities over which the Group has control. Where an entity is governed by voting rights, the Group consolidates when it holds, directly or indirectly, the necessary voting rights to pass resolutions by the governing body. In other cases, the assessment of control is more complex and requires judgement of other factors, including having exposure to variability of returns, power to direct relevant activities, and whether power is held as agent or principal. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Impairment testing is performed where there is an indication of impairment, by comparing the recoverable amount of the relevant investment to its carrying amount. Indicators of impairment include both external and internal sources of information. Similarly, assessments are made as to whether an impairment loss recognised in prior periods may no longer exist or may have decreased. Where this is the case, such an impairment loss is reversed if there has been a change in the estimate used to determine the relevant recoverable amount since the last impairment loss was recognised, and to the extent that it does not increase the carrying amount above that had no impairment loss been previously recognised. (ii) Associated companies and joint arrangements The Group classifies investments in entities over which it has significant influence, and which are neither subsidiaries nor joint arrangements, as associated companies. This is generally the case where the Group holds between 20% and 50% of the voting rights. Joint arrangements are investments in which the Group, together with one or more parties, has joint control and over which none of the participating parties has unilateral control. Investments in joint arrangements are classified either as joint operations or joint ventures, depending on the contractual rights and obligations each investor has. Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. Joint ventures arise where the investors have rights to the net assets of the arrangement. The Group recognises its share of the assets, liabilities and results in a joint operation. Investments in associated companies and interests in joint ventures are recognised using the equity method. The attributable share of the results and reserves of joint ventures and associated companies is included in the consolidated financial statements based on either financial statements made up to 31 December or pro-rated amounts adjusted for any material transactions or events occurring between the date the financial statements are available and 31 December. Investments in associated companies and joint ventures are assessed at each reporting date and tested for impairment when there is an indication that the investment may be impaired, by comparing the recoverable amount of the relevant investment to its carrying amount. Goodwill on acquisitions of interests in joint ventures and associated companies is not tested separately for impairment, but is assessed as part of the carrying amount of the investment. Previously recognised impairments are assessed for reversal when there are indicators that they may no longer exist or have decreased. Any reversal, which may arise from changes in estimates used to determine the prior impairment loss, is recognised to the extent that it does not increase the carrying amount above that had no impairment loss been previously recognised. CKHH 2025 Interim Results Financial Statements Page 152 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (iii) Changes in ownership interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to the ordinary shareholders of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associated company, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss or transferred to another category of equity as specified / permitted by applicable IFRS. If the ownership interest in a joint venture or an associated company is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate. (iv) Business combinations The Group applies the provisions of IFRS 3, Business combinations, to transactions and other events that meet the definition of a business combination within the scope of IFRS 3. Where the acquisition method of accounting is used to account for business combinations, the consideration transferred is the sum of the acquisition date fair values of the assets transferred, equity instruments issued or liabilities incurred by the Group to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree’s identifiable net assets. This election is made for each business combination. Acquisition-related costs are generally recognised in profit or loss as incurred. The difference between the fair value of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any pre-existing investment in the acquiree over the acquisition-date fair value of assets acquired and the liabilities assumed is recognised as goodwill. If the consideration transferred and the fair value of pre-existing investment in the acquiree is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the Group, the difference is recognised as a gain directly in profit or loss by the Group on the acquisition date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the Group’s previously held equity interest in the acquiree. When the consideration transferred by the Group in a business combination includes a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the “measurement period” (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Other contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognised in profit or loss. When a business combination is achieved in stages, the Group’s previously held interests (including joint operations) in the acquired entity are remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of. Business combinations are initially accounted for on a provisional basis. The Group retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period (see above), based on new information obtained about the facts and circumstances that existed as of the acquisition date. CKHH 2025 Interim Results Financial Statements Page 153 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (v) Goodwill Goodwill is initially recognised and measured as set out in note 44(a)(iv) Business combinations. Goodwill is not amortised but is subject to impairment test annually and when there is an indication that the carrying value may not be recoverable. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash generating units) expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal (but does not include any attributable goodwill previously eliminated against reserves). The Group’s policy for goodwill arising on the acquisition of an associated company and a joint venture is described in note 44(a)(ii) above. (vi) Fixed assets Fixed assets other than freehold lands, are stated at cost less depreciation and any impairment loss. Freehold lands included in land and buildings are not depreciated. Buildings are depreciated on the basis of an expected life of 50 years, or the remainder thereof, or over the remaining period of the lease of the underlying leasehold land, whichever is less. The period of the lease includes the period for which a right to renewal is attached. Depreciation of other fixed assets is provided on the straight-line basis to write off their costs over their estimated useful lives. The principal annual rates used for these purposes are as follows: Motor vehicles 20 - 25% Plant, machinery and equipment 3 1/3 - 20% Container terminal equipment 3 - 20% Telecommunications equipment 2.5 - 20% Leasehold improvements Over the unexpired period of the lease or 15%, whichever is greater The gain or loss on disposal or retirement of a fixed asset is the difference between the net sales proceeds and the carrying amount. (vii) Leases (I) Group as a lessee Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the lease liability and interest on lease liability. The interest on lease liability is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the lease liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments (including in-substance fixed payments), less any lease incentives receivable; • variable lease payment that are based on an index or a rate; • amounts expected to be payable by the lessee under residual value guarantees; • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. CKHH 2025 Interim Results Financial Statements Page 154 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (vii) Leases (continued) (I) Group as a lessee (continued) The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability; • lease payments made at or before the commencement date less any lease incentives received; • initial direct costs and restoration costs. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise small items of office furniture and certain IT-equipment. Some leases contain variable payment terms that are linked to sales generated from a store. For individual retail stores, lease payments are on the basis of variable payment terms and there is a wide range of sales percentages applied. Variable payment terms are used for a variety of reasons, including minimising the fixed costs base for newly established stores. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs. Extension and termination options are included in a number of leases across the Group. These terms are used to maximise operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). (II) Group as a lessor A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to the ownership of an underlying asset to the lessee. If this is not the case, the lease is classified as an operating lease. However, when the Group is an intermediate lessor the sublease are classified as a finance lease or as an operating lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. (viii) Telecommunications licences, other licences, brand names, trademarks and other rights Separately acquired telecommunications licences, other licences, brand names, trademarks and other rights are carried at historical cost. Telecommunications licences, other licences, brand names, trademarks and other rights that are considered to have indefinite useful lives to the Group are not amortised and are tested for impairment annually and when there is an indication that they may be impaired. Telecommunications licences, other licences, brand names, trademarks and other rights with a finite useful life are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost of these assets over their estimated useful lives: Telecommunications licences and other licences 2 to 20 years Brand names, trademarks and other rights 2 to 45 years (ix) Customer acquisition and retention costs Customer acquisition and retention costs (“CACs”) comprise the net costs to acquire and retain customers, which are mainly mobile telecommunication customers. CACs are expensed and recognised in the consolidated income statement in the period in which they are incurred, except (i) the costs are incremental of obtaining a contract and they are expected to be recovered; and (ii) the costs relate directly to the contract, generate resources used in satisfying the contract and are expected to be recovered, then they are capitalised and amortised over the customer contract period. Appropriate allowance are recognised if the carrying amounts of the capitalised costs exceed the remaining amount that the Group expects to receive less any directly related costs that have not been recognised as expenses. CKHH 2025 Interim Results Financial Statements Page 155 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (x) Liquid funds and other listed investments and unlisted investments “Liquid funds and other listed investments” are investments in listed debt securities, listed equity securities and cash and cash equivalents. “Unlisted investments”, disclosed under other non-current assets, are investments in unlisted debt securities and unlisted equity securities. These investments are recognised and de-recognised on the date the Group commits to purchase or sell the investments or when they expire. (I) Measurement Debt instrument financial assets subsequent to initial recognition are measured as follows: Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets, impairment losses, foreign exchange gains and losses, and gain or loss arising on derecognition are recognised directly in profit or loss. Financial assets at fair value through other comprehensive income (“FVOCI”): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment losses and reversals, interest revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to, and recognised in, profit or loss. Financial assets at fair value through profit or loss (“FVPL”): Assets that do not meet the criteria for amortised cost or FVOCI, or designated as FVPL using fair value option, are measured at FVPL. A gain or loss on a debt instrument that is subsequently measured at FVPL is recognised in profit or loss in the period in which it arises. Equity instrument financial assets are measured at fair value at and subsequent to initial recognition. Changes in the fair value of these financial assets are normally recognised in profit or loss. Dividends from such investments are recognised in profit or loss when the Group’s right to receive payments is established. Where an election is made to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. (II) Impairment Under the expected loss approach, the Group assesses on a forward looking basis the expected credit losses associated with its financial assets. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The impairment model under IFRS 9 applies to debt instruments measured at amortised cost and at FVOCI, contract assets under IFRS 15, lease receivables, loan commitments and certain financial guarantee contracts. The Group applies the simplified approach to recognise lifetime expected losses for trade receivables due from customers and contract assets. As regards lease receivables, loan commitments, financial guarantee contracts, and certain other financial assets (which are presented under Liquid funds and other listed investments, unlisted investments, and other current assets within Trade receivables and other current assets) the Group considers that they have low credit risk and hence recognises 12-month expected credit losses for such items. (xi) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. CKHH 2025 Interim Results Financial Statements Page 156 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (xii) Trade and other receivables, and contract assets Trade receivables are recognised when the Group’s right to consideration is unconditional that only the passage of time is required before the payment is due. Contract assets primarily relate to the Group’s rights to consideration for delivered goods or services but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. Trade receivables and contract assets are initially recognised at the amount of consideration that is unconditional unless they contain significant financing components when they are recognised at fair value, and are subsequently measured at amortised cost using the effective interest rate, less allowance for expected credit losses. Other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less allowances for expected credit losses. (xiii) Borrowings and borrowing costs Borrowings and debt instruments are initially measured at fair value, net of transaction costs, and are subsequently carried at amortised cost. Any difference between the proceeds (net of transaction costs) and the settlement or redemption amount is recognised over the period of the borrowings using the effective interest method. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in the consolidated income statement in the period in which they are incurred. (xiv) Trade and other payables, and contract liabilities Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. Contract liability is recognised in the amount of the prepayment from customers for the Group’s performance obligation to transfer, or to stand ready to transfer, goods or services in future. The contract liabilities primarily relate to the advance consideration received from customers, where the Group has the unconditional right to considerations before the goods or services are delivered. They are released and revenues are recognised when the performance obligations are satisfied upon transferring of goods and services to customers. (xv) Asset impairment Assets that have an indefinite useful life are tested for impairment annually and when there is an indication that they may be impaired. Assets that are subject to depreciation and amortisation are reviewed for impairment to determine whether there is any indication that the carrying value of these assets may not be recoverable and have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. Such impairment loss is recognised in the consolidated income statement except where the asset is carried at valuation and the impairment loss does not exceed the revaluation surplus for that in which case it is treated as a revaluation decrease. CKHH 2025 Interim Results Financial Statements Page 157 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (xvi) Foreign exchange Transactions in foreign currencies are converted at the rates of exchange ruling at the transaction dates. Monetary assets and liabilities are translated at the rates of exchange ruling at the end of the reporting period. The financial statements of foreign operations are translated into Hong Kong dollar using the period / year end rates of exchange for the consolidated statement of financial position items and the average rates of exchange for the period / year for the income statement items. Exchange differences are recognised in other comprehensive income and accumulated under the heading of exchange reserve. Exchange differences arising from foreign currency borrowings and other currency instruments designated as hedges of such overseas investments, are recognised in other comprehensive income and accumulated under the heading of exchange reserve. Exchange differences arising from translation of inter-company loan balances between Group entities are recognised in other comprehensive income and accumulated under the heading of exchange reserve when such loans form part of the Group’s net investment in a foreign entity. On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving loss of joint control over a joint venture that includes a foreign operation, or a disposal involving loss of significant influence over an associated company that includes a foreign operation), all of the exchange gains or losses accumulated in exchange reserve in respect of that operation attributable to the owners of the Company are transferred out of the exchange reserve and are recognised in the consolidated income statement. In addition, in relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary that includes a foreign operation, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in the consolidated income statement. For all other partial disposals (i.e. partial disposals of associated companies or joint ventures that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is transferred out of the exchange reserve and are recognised in the consolidated income statement. All other exchange differences are recognised in the consolidated income statement. In line with IFRS 1 exemption guidance, the cumulative currency translation differences for all foreign operations are deemed to be zero at the date of transition to IFRS. (xvii) Revenue recognition Revenue is measured at the fair value of the consideration received and receivable and represents amounts receivable for goods and services provided in the normal course of business. Revenue from contracts with customers is measured based on the consideration specified in a contract with a customer and exclude amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer. Ports and Related Services Revenue from the provision of ports and related services is recognised over time when the services are rendered and the Group’s performance provides the benefits received and consumed simultaneously by the customer. Retail Revenue from the sale of retail goods is recognised at point of sale less an estimate for sales return based on past experience where goods are sold with a right to return. Retail sales are usually settled in cash or by credit card and debit card. The recorded revenue is the gross amount of sales, including credit card fees payable for the transaction. CKHH 2025 Interim Results Financial Statements Page 158 of 197
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44 Summary of material accounting policies (continued) (a) Summary of material accounting policies (continued) (xvii) Revenue recognition (continued) Infrastructure Revenue from sales of infrastructure materials is recognised when a performance obligation is satisfied, which is recognised at a point in time, based on the timing of control of the goods underlying the particular performance obligation being transferred to the customer. Revenue from the provision of waste collection, commercial refuse and recycling services together with refuse transfer station operations and landfill operations is recognised when a performance obligation is satisfied, which is recognised at a point of time, based on the timing of control of the services underlying the particular performance obligation being transferred to the customer. Telecommunications services Revenue represents amounts earned for services rendered and for the sale of mobile and related devices. The Group recognises revenue for mobile devices when it transfers the control over the device to the customer which is usually the time the customer signs up to a contract. The Group recognises revenue for mobile telecommunication services as the services are rendered. Monthly recurring charges and additional airtime used by contract customers are invoiced and recorded as part of a periodic billing cycle and recognised as revenue over the related access period. Unbilled revenue resulting from services already provided from the billing cycle date to the end of each period is accrued, and unearned monthly access charges relating to periods after each accounting period are deferred. Products and services may be sold separately or in a bundled transaction. Revenue from the sale of prepaid credit is deferred until such time as the customer uses the airtime, or the credit expires. For bundled transactions under contract comprising the provision of telecommunications services and sale of a device (e.g. handsets), the elements are accounted for separately if they are distinct. A product or service is distinct if they are separately identifiable from other items in the bundled package and if the customer can benefit from it. The revenue is allocated to the respective element in an amount that reflects the consideration to which the Group expects to be entitled in exchange for the services and device, where device revenue is recognised at the inception of the contract upon delivery to the customer and services revenue is recognised throughout the contract period as the services are provided. Other service income is recognised when the service is rendered. Customer service revenue is mobile telecommunications service revenue, and where a customer is invoiced for a bundled transaction under contract, the invoiced amount less amounts related to accrued device revenue and also less other service income. Total revenue arising from telecommunications services comprises of service revenue, sale of device revenue and other service income. Finance and investments Dividend income from investments in securities is recognised when the Group’s right to receive payment is established. Interest income is recognised on a time proportion basis using the effective interest method. CKHH 2025 Interim Results Financial Statements Page 159 of 197
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44 Summary of material accounting policies (continued) (b) Summary of other potentially material accounting policies Set out below is a summary of other potentially material accounting policies adopted in the preparation of these financial statements to the extent they have not already been disclosed in the other notes elsewhere in these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated. (i) Non-current assets (or disposal groups) held for sale and discontinued operations Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the consolidated statement of financial position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the consolidated statement of financial position. A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the consolidated income statement. (ii) Investment properties Investment properties are interests in land and buildings that are held to earn rentals or for capital appreciation or both. Such properties are carried in the consolidated statement of financial position at their fair value. Changes in fair values of investment properties are recorded in the consolidated income statement. (iii) Leasehold land The acquisition costs and upfront payments made for leasehold land are presented on the face of the consolidated statement of financial position as leasehold land prior to 1 January 2019 and are grouped as part of right-of-use assets with effect from 1 January 2019. Leasehold land are expensed in the consolidated income statement on a straight-line basis over the period of the lease. (iv) Contractual customer relationships Separately acquired contractual customer relationships are carried at historical cost. These contractual customer relationships are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method from five to fifteen years over the expected useful life of the customer relationship. (v) Deferred tax Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax losses and tax credits can be utilised. CKHH 2025 Interim Results Financial Statements Page 160 of 197
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44 Summary of material accounting policies (continued) (b) Summary of other potentially material accounting policies (continued) (vi) Derivative financial instruments and hedging activities Derivative financial instruments are utilised by the Group in the management of its foreign currency and interest rate exposures. Derivative financial instruments are recognised at fair value. At the end of each reporting period the fair value is remeasured. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss, except where the derivatives qualify for cash flow hedge accounting or hedges of net investment in a foreign operation, in which case recognition of any resultant gain or loss depends on the nature of the item being hedged. For the purpose of hedge accounting, hedges are classified as: • Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment; • Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment; • Hedges of a net investment in a foreign operation (net investment hedges). At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. At the inception of the hedging, the Group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability. Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below: Fair value hedges The change in the fair value of a hedging instrument is recognised in profit or loss as other expense except when the hedging instrument hedges an equity instrument designated at FVOCI in which case it is recognised in other comprehensive income. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item (if applicable) and is also recognised in profit or loss as other expense. For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through profit or loss over the remaining term of the hedge using the effective interest rate (“EIR”) method. The EIR amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged. If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. CKHH 2025 Interim Results Financial Statements Page 161 of 197
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44 Summary of material accounting policies (continued) (b) Summary of other potentially material accounting policies (continued) (vi) Derivative financial instruments and hedging activities (continued) Cash flow hedges Where a derivative financial instrument is designated as a hedging instrument in a cash flow hedge, the effective portion of any gain or loss on the derivative financial instrument is recognised in other comprehensive income and accumulated separately in equity in the hedging reserve. The ineffective portion of any gain or loss is recognised immediately in profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset such as inventory, the associated gain or loss is reclassified from equity to be included in the initial cost of the non-financial asset. For all other hedged forecast transactions, the amount accumulated in the hedging reserve is reclassified from equity to profit or loss in the same period or periods during which the hedged cash flows affect profit or loss (such as when a forecast sale occurs or interest expense is recognised). If a hedge no longer meets the criteria for hedge accounting (including when the hedging instrument expires or is sold, terminated or exercised), then hedge accounting is discontinued prospectively. When hedge accounting is discontinued, but the hedged forecast transaction is still expected to occur, the amount that has been accumulated in the hedging reserve remains in equity until the transaction occurs and it is recognised in accordance with the above policy. If the hedged transaction is no longer expected to take place, the amount that has been accumulated in the hedging reserve is reclassified from equity to profit or loss immediately. Hedge of net investments in foreign operations The effective portion of any foreign exchange gain or loss on the derivative financial instruments is recognised in other comprehensive income and accumulated in equity in the exchange reserve until the disposal of the foreign operation, at which time the cumulative gain or loss is reclassified from equity to profit or loss. The ineffective portion is recognised immediately in profit or loss. (vii) Inventories Inventories consist mainly of retail goods. The carrying value of retail stock is mainly determined using the weighted average cost method. Inventories are stated at the lower of cost and net realisable value. Cost includes all direct expenditure and other appropriate attributable costs incurred in bringing inventories to their present location and condition. (viii) Customer loyalty credits Customer loyalty credits are accounted for as a separate component of the sales transaction in which they are granted. (ix) Share capital Share capital issued by the Company are recorded in equity at the proceeds received, net of direct issue costs. Where any group company purchases the company’s equity instruments, for example as the result of a share buy-back or a share-based payment plan, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the ordinary shareholders. (x) Provisions Provisions are recognised when it is probable that an outflow of economic benefits will be required to settle a present obligation as a result of past events and a reliable estimate can be made of the amount of the obligation. CKHH 2025 Interim Results Financial Statements Page 162 of 197
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44 Summary of material accounting policies (continued) (b) Summary of other potentially material accounting policies (continued) (xi) Pension plans Pension plans are classified into defined benefit and defined contribution plans. The pension plans are generally funded by the relevant group companies taking into account the recommendations of independent qualified actuaries and by payments from employees for contributory plans. The Group’s contributions to the defined contribution plans are charged to the consolidated income statement in the year incurred. Pension costs for defined benefit plans are assessed using the projected unit credit method. Under this method, the cost of providing pensions is charged to the consolidated income statement so as to spread the regular cost over the future service lives of employees in accordance with the advice of the actuaries who carry out a full valuation of the plans. The liability or asset recognised in the consolidated statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of the plan assets. The present value of the defined benefit obligation is measured by discounting the estimated future cash outflows using interest rates determined by reference to market yields at the end of the reporting period based on government agency or high quality corporate bonds with currency and term similar to the estimated term of benefit obligations. Remeasurements arising from defined benefit plans are recognised in other comprehensive income in the period in which they occur and reflected immediately in retained profit. Remeasurements comprise actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability (asset)) and any change in the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefit liability (asset)). Pension costs are charged to the consolidated income statement within staff costs. (xii) Share-based payments The Company and its subsidiary companies do not have share option scheme as at 30 June 2025, 31 December 2024, 31 December 2023 and 1 January 2023 but certain of the Company’s associated companies have issued equity-settled and cash-settled share-based compensation plans. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the respective group companies’ estimate of their shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions. For cash-settled share-based payments, a liability equal to the portion of the goods or services received is recognised at the current fair value determined at the end of the reporting period. CKHH 2025 Interim Results Financial Statements Page 163 of 197
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44 Summary of material accounting policies (continued) (c) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting year and have not been early adopted by the Group. (i) Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 The IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments: - clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system; - clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion; - add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and - update the disclosures for equity instruments designated at fair value through other comprehensive income. The amendments to IFRS 9 and IFRS 7 will be effective for annual reporting periods beginning on or after 1 January 2026. The Group does not expect these amendments to have a material impact on its operations or financial statements. (ii) Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 The amendments clarify the application of the own-use exception requirements for in-scope contracts, amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts and add new disclosure requirements on the effect of these contracts on a company’s financial performance and cash flows. As a result of the amendments, entities will be able to apply the own-use exception to certain contracts referencing nature-dependent electricity (“CRNE”) which are contracts to purchase electricity from nature-dependent sources such as wind energy or solar energy; and designate a variable nominal volume of electricity as a hedged item, facilitating application of hedge accounting to CRNEs. The amendments will be effective for annual reporting periods beginning on or after 1 January 2026. The Group does not expect these amendments to have a material impact on its operations or financial statements. (iii) Annual Improvements to IFRS Accounting Standards – Volume 11 The IASB issued narrow-scope amendments to IFRS that include clarifications, simplifications, corrections, and changes intended to improve consistency in: - IFRS 1 First-time Adoption of International Financial Reporting Standards; - IFRS 7 Financial Instruments: Disclosures and Guidance on implementing IFRS 7; - IFRS 9 Financial Instruments; - IFRS 10 Consolidated Financial Statements; and - IAS 7 Statement of Cash Flows. These amendments will be effective for annual periods beginning on or after 1 January 2026. The Group does not expect these amendments to have a material impact on its operations or financial statements. (iv) Presentation and Disclosure in Financial Statements – IFRS 18 IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements. The key new concepts introduced in IFRS 18 relate to: - the structure of the statement of profit or loss with defined subtotals; - requirement to determine the most useful structure summary for presenting expenses in the statement of profit or loss; - required disclosures in a single note within the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and - enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. The Group will apply the new standard from its mandatory effective date of 1 January 2027. Retrospective application is required, and so the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18. CKHH 2025 Interim Results Financial Statements Page 164 of 197
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45 Reconciliations between IFRS and Previous GAAP (see note 4) Reconciliations between amounts reported under IFRS and Previous GAAP as presented below. (a) Total Equity 31 December 30 June 31 December 30 June I January 2024 2024 2023 2023 2023 HK$ million HK$ million HK$ million HK$ million HK$ million Total equity under Previous GAAP 652,592 656,960 670,549 662,286 647,309 Transition to IFRS: Effect on exchange reserve at date of transition + 40,203 + 40,203 + 40,203 + 40,203 + 40,203 Effect on exchange reserve - 1H 2023 - 334 - 334 - 334 - 334 - Effect on exchange reserve - 2H 2023 - 5 - 5 - 5 - - + 39,864 + 39,864 + 39,864 + 39,869 + 40,203 Effect on retained profit at date of transition - 40,203 - 40,203 - 40,203 - 40,203 - 40,203 Effect on retained profit - 1H 2023 + 334 + 334 + 334 + 334 - Effect on retained profit - 2H 2023 + 5 + 5 + 5 - - - 39,864 - 39,864 - 39,864 - 39,869 - 40,203 Total equity under IFRS 652,592 656,960 670,549 662,286 647,309 CKHH 2025 Interim Results Financial Statements Page 165 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (b) Consolidated Statement of Financial Position at 1 January 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Non-current assets Fixed assets 112,650 - 112,650 Right-of-use assets 59,337 - 59,337 Telecommunications licences 60,689 - 60,689 Brand names and other rights 83,694 - 83,694 Goodwill 268,008 - 268,008 Associated companies 140,711 - 140,711 Interests in joint ventures 148,561 - 148,561 Deferred tax assets 18,509 - 18,509 Liquid funds and other listed investments 16,103 - 16,103 Other non-current assets 15,900 - 15,900 924,162 - 924,162 Current assets Cash and cash equivalents 138,085 - 138,085 Inventories 23,283 - 23,283 Trade receivables and other current assets 56,811 - 56,811 218,179 - 218,179 Assets classified as held for sale 6,096 - 6,096 224,275 - 224,275 Current liabilities Bank and other debts 70,130 - 70,130 Current tax liabilities 4,001 - 4,001 Lease liabilities 12,128 - 12,128 Trade payables and other current liabilities 89,129 - 89,129 175,388 - 175,388 Liabilities directly associated with assets classified as held for sale 1,127 - 1,127 176,515 - 176,515 Net current assets 47,760 - 47,760 Total assets less current liabilities 971,922 - 971,922 Non-current liabilities Bank and other debts 214,196 - 214,196 Interest bearing loans from non-controlling shareholders 2,567 - 2,567 Lease liabilities 53,931 - 53,931 Deferred tax liabilities 19,290 - 19,290 Pension obligations 2,730 - 2,730 Other non-current liabilities 31,899 - 31,899 324,613 - 324,613 Net assets 647,309 - 647,309 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 276,711 - 276,711 Total ordinary shareholders’ funds 523,513 - 523,513 Perpetual capital securities 4,561 - 4,561 Non-controlling interests 119,235 - 119,235 Total equity 647,309 - 647,309 CKHH 2025 Interim Results Financial Statements Page 166 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (c) Consolidated Income Statement for the year ended 31 December 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Revenue 281,351 - 281,351 Cost of inventories sold (106,194) - (106,194) Staff costs (41,591) - (41,591) Expensed customer acquisition and retention costs (15,433) - (15,433) Depreciation and amortisation (40,460) - (40,460) Other expenses and losses (52,895) - (52,895) Other income and gains 524 - 524 Share of profits less losses of: Associated companies 6,903 - 6,903 Joint ventures 9,757 - 9,757 41,962 - 41,962 Interest expenses and other finance costs (13,392) - (13,392) Profit before tax 28,570 - 28,570 Current tax charge (4,189) - (4,189) Deferred tax charge (528) - (528) Profit after tax 23,853 - 23,853 Profit attributable to non-controlling interests and holders of perpetual capital securities (6,765) - (6,765) Profit attributable to ordinary shareholders 17,088 - 17,088 CKHH 2025 Interim Results Financial Statements Page 167 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (d) Consolidated Statement of Comprehensive Income for the year ended 31 December 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Profit after tax 23,853 - 23,853 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income (528) - (528) Remeasurement of defined benefit obligations 810 - 810 Share of other comprehensive income (losses) of associated companies (83) - (83) Share of other comprehensive income (losses) of joint ventures (945) - (945) Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss (90) - (90) (836) - (836) Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income 126 - 126 Exchange losses on translation of foreign operations (9,543) - (9,543) Losses on cash flow hedges (132) - (132) Gains on net investment hedges 1,484 - 1,484 Share of other comprehensive income (losses) of associated companies (5,670) - (5,670) Share of other comprehensive income (losses) of joint ventures (5,311) - (5,311) Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss 5 - 5 (19,041) - (19,041) Other comprehensive income (losses), net of tax (19,877) - (19,877) Total comprehensive income 3,976 - 3,976 Total comprehensive income attributable to non-controlling interests and holders of perpetual capital securities (4,155) - (4,155) Total comprehensive income (losses) attributable to ordinary shareholders (179) - (179) CKHH 2025 Interim Results Financial Statements Page 168 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (e) Consolidated Statement of Financial Position at 31 December 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Non-current assets Fixed assets 111,777 - 111,777 Right-of-use assets 57,589 - 57,589 Telecommunications licences 63,869 - 63,869 Brand names and other rights 79,241 - 79,241 Goodwill 267,325 - 267,325 Associated companies 139,855 - 139,855 Interests in joint ventures 154,208 - 154,208 Deferred tax assets 18,140 - 18,140 Liquid funds and other listed investments 8,142 - 8,142 Other non-current assets 20,203 - 20,203 920,349 - 920,349 Current assets Cash and cash equivalents 121,303 - 121,303 Inventories 24,923 - 24,923 Trade receivables and other current assets 45,967 - 45,967 192,193 - 192,193 Current liabilities Bank and other debts 30,956 - 30,956 Interest bearing loan from a non-controlling shareholder 1,874 - 1,874 Current tax liabilities 3,368 - 3,368 Lease liabilities 12,142 - 12,142 Trade payables and other current liabilities 82,645 - 82,645 130,985 - 130,985 Net current assets 61,208 - 61,208 Total assets less current liabilities 981,557 - 981,557 Non-current liabilities Bank and other debts 225,436 - 225,436 Interest bearing loans from non-controlling shareholders 1,597 - 1,597 Lease liabilities 52,377 - 52,377 Deferred tax liabilities 17,974 - 17,974 Pension obligations 3,197 - 3,197 Other non-current liabilities 28,384 - 28,384 328,965 - 328,965 Net assets 652,592 - 652,592 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 287,913 - 287,913 Total ordinary shareholders’ funds 534,715 - 534,715 Non-controlling interests 117,877 - 117,877 Total equity 652,592 - 652,592 CKHH 2025 Interim Results Financial Statements Page 169 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (f) Consolidated Statement of Changes in Equity for the year ended 31 December 2024 Holders of Share capital Total ordinary perpetual Non- and share shareholders’ capital controlling Total premium Reserves funds securities interests equity HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2024 under Previous GAAP 246,802 297,233 544,035 4,566 121,948 670,549 Effect on adoption of IFRS - - - - - - At 1 January 2024 under IFRS 246,802 297,233 544,035 4,566 121,948 670,549 Profit for the year under Previous GAAP - 17,088 17,088 71 6,694 23,853 Effect on adoption of IFRS - - - - - - Profit for the year under IFRS - 17,088 17,088 71 6,694 23,853 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - (528) (528) - - (528) Changes in fair value of debt instruments at fair value through other comprehensive income - 126 126 - - 126 Remeasurement of defined benefit obligations - 646 646 - 164 810 Exchange losses on translation of foreign operations - (8,156) (8,156) - (1,387) (9,543) Losses on cash flow hedges - (122) (122) - (10) (132) Gains on net investment hedges - 1,123 1,123 - 361 1,484 Share of other comprehensive income (losses) of associated companies - (5,320) (5,320) - (433) (5,753) Share of other comprehensive income (losses) of joint ventures - (4,969) (4,969) - (1,287) (6,256) Tax relating to components of other comprehensive income (losses) - (67) (67) - (18) (85) Other comprehensive income (losses), net of tax, under Previous GAAP - (17,267) (17,267) - (2,610) (19,877) Effect on adoption of IFRS - - - - - - Other comprehensive income (losses), net of tax, under IFRS - (17,267) (17,267) - (2,610) (19,877) Total comprehensive income (losses) under IFRS - (179) (179) 71 4,084 3,976 Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2023 - (6,798) (6,798) - - (6,798) Dividends paid relating to 2024 - (2,635) (2,635) - - (2,635) Dividends paid to non-controlling interests - - - - (7,932) (7,932) Distributions paid on perpetual capital securities - - - (162) - (162) Redemption of perpetual capital securities - - - (4,475) - (4,475) Equity contribution from non-controlling interests - - - - 624 624 Unclaimed dividends write back - 9 9 - - 9 Relating to purchase of non-controlling interests - (37) (37) - 16 (21) Relating to partial disposal / disposal of subsidiary companies - 320 320 - (863) (543) - (9,141) (9,141) (4,637) (8,155) (21,933) At 31 December 2024 under IFRS 246,802 287,913 534,715 - 117,877 652,592 Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 170 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (g) Consolidated Statement of Cash Flows for the year ended 31 December 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 75,130 - 75,130 Interest expenses and other finance costs paid (net of capitalisation) (13,267) - (13,267) Tax paid (4,652) - (4,652) Funds from operations (before principal elements of lease payments) 57,211 - 57,211 Changes in working capital (2,983) - (2,983) Net cash from operating activities 54,228 - 54,228 Investing activities Purchase of fixed assets (20,365) - (20,365) Additions to telecommunications licences (72) - (72) Additions to brand names and other rights (1,913) - (1,913) Purchase of subsidiary companies, net of cash acquired (4,114) - (4,114) Additions to unlisted investments (44) - (44) Repayments of loans from associated companies and joint ventures 1,242 - 1,242 Purchase of and advances to associated companies and joint ventures (2,470) - (2,470) Proceeds from disposal of fixed assets 146 - 146 Proceeds from disposal of subsidiary companies, net of cash disposed 333 - 333 Proceeds from partial disposal / disposal of associated companies and joint ventures 179 - 179 Proceeds from disposal of other unlisted investments 266 - 266 Cash flows used in investing activities before additions to / disposal of liquid funds and other listed investments (26,812) - (26,812) Disposal of liquid funds and other listed investments 7,172 - 7,172 Additions to liquid funds and other listed investments (262) - (262) Cash flows used in investing activities (19,902) - (19,902) Net cash inflow before financing activities 34,326 - 34,326 Financing activities New borrowings 54,594 - 54,594 Repayment of borrowings (60,201) - (60,201) Principal elements of lease payments (14,103) - (14,103) Net loans from non-controlling shareholders 466 - 466 Issue of equity securities by subsidiary companies to non-controlling shareholders 624 - 624 Redemption of perpetual capital securities (4,180) - (4,180) Dividends paid to ordinary shareholders (9,433) - (9,433) Dividends paid to non-controlling interests (7,951) - (7,951) Distributions paid on perpetual capital securities (162) - (162) Cash flows used in financing activities (40,346) - (40,346) Decrease in cash and cash equivalents (6,020) - (6,020) Cash and cash equivalents at 1 January 2024 127,323 - 127,323 Cash and cash equivalents at 31 December 2024 121,303 - 121,303 CKHH 2025 Interim Results Financial Statements Page 171 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (h) Consolidated Income Statement for the year ended 31 December 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Revenue 275,575 - 275,575 Cost of inventories sold (105,739) - (105,739) Staff costs (39,226) - (39,226) Expensed customer acquisition and retention costs (15,188) - (15,188) Depreciation and amortisation (40,083) - (40,083) Other expenses and losses (48,095) 250 (47,845) Other income and gains 2,067 92 2,159 Share of profits less losses of: Associated companies 8,138 - 8,138 Joint ventures 7,990 - 7,990 45,439 342 45,781 Interest expenses and other finance costs (12,227) - (12,227) Profit before tax 33,212 342 33,554 Current tax charge (4,119) - (4,119) Deferred tax credit 1,116 - 1,116 Profit after tax 30,209 342 30,551 Profit attributable to non-controlling interests and holders of perpetual capital securities (6,709) (3) (6,712) Profit attributable to ordinary shareholders 23,500 339 23,839 CKHH 2025 Interim Results Financial Statements Page 172 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (i) Consolidated Statement of Comprehensive Income for the year ended 31 December 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Profit after tax 30,209 342 30,551 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income 718 - 718 Remeasurement of defined benefit obligations (1,470) - (1,470) Share of other comprehensive income (losses) of associated companies (560) - (560) Share of other comprehensive income of joint ventures 269 - 269 Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss 376 - 376 (667) - (667) Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income 120 - 120 Exchange gains on translation of foreign operations 7,771 - 7,771 Exchange losses reclassified to profit or loss 342 (342) - Losses on cash flow hedges (1,059) - (1,059) Losses on net investment hedges (1,641) - (1,641) Reclassification adjustments for hedging gains included in profit or loss (1,735) - (1,735) Share of other comprehensive income of associated companies 1,889 - 1,889 Share of other comprehensive income of joint ventures 3,728 - 3,728 Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss 4 - 4 9,419 (342) 9,077 Other comprehensive income, net of tax 8,752 (342) 8,410 Total comprehensive income 38,961 - 38,961 Total comprehensive income attributable to non-controlling interests and holders of perpetual capital securities (7,476) - (7,476) Total comprehensive income attributable to ordinary shareholders 31,485 - 31,485 CKHH 2025 Interim Results Financial Statements Page 173 of 197
Page 174
45 Reconciliations between IFRS and Previous GAAP (continued) (j) Consolidated Statement of Financial Position at 31 December 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Non-current assets Fixed assets 119,826 - 119,826 Right-of-use assets 61,198 - 61,198 Telecommunications licences 64,264 - 64,264 Brand names and other rights 83,396 - 83,396 Goodwill 271,136 - 271,136 Associated companies 143,638 - 143,638 Interests in joint ventures 156,337 - 156,337 Deferred tax assets 21,074 - 21,074 Liquid funds and other listed investments 15,786 - 15,786 Other non-current assets 19,862 - 19,862 956,517 - 956,517 Current assets Cash and cash equivalents 127,323 - 127,323 Inventories 24,473 - 24,473 Trade receivables and other current assets 50,590 - 50,590 202,386 - 202,386 Current liabilities Bank and other debts 58,324 - 58,324 Current tax liabilities 4,166 - 4,166 Lease liabilities 13,616 - 13,616 Trade payables and other current liabilities 86,419 - 86,419 162,525 - 162,525 Net current assets 39,861 - 39,861 Total assets less current liabilities 996,378 - 996,378 Non-current liabilities Bank and other debts 213,598 - 213,598 Interest bearing loans from non-controlling shareholders 3,245 - 3,245 Lease liabilities 54,307 - 54,307 Deferred tax liabilities 19,572 - 19,572 Pension obligations 3,536 - 3,536 Other non-current liabilities 31,571 - 31,571 325,829 - 325,829 Net assets 670,549 - 670,549 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 297,233 - 297,233 Total ordinary shareholders’ funds 544,035 - 544,035 Perpetual capital securities 4,566 - 4,566 Non-controlling interests 121,948 - 121,948 Total equity 670,549 - 670,549 CKHH 2025 Interim Results Financial Statements Page 174 of 197
Page 175
45 Reconciliations between IFRS and Previous GAAP (continued) (k) Consolidated Statement of Changes in Equity for the year ended 31 December 2023 Holders of Share capital Total ordinary perpetual Non- and share shareholders’ capital controlling Total premium Reserves funds securities interests equity HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 under Previous GAAP 246,802 276,711 523,513 4,561 119,235 647,309 Effect on adoption of IFRS - - - - - - At 1 January 2023 under IFRS 246,802 276,711 523,513 4,561 119,235 647,309 Profit for the year under Previous GAAP - 23,500 23,500 172 6,537 30,209 Effect on adoption of IFRS - 339 339 - 3 342 Profit for the year under IFRS - 23,839 23,839 172 6,540 30,551 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - 718 718 - - 718 Changes in fair value of debt instruments at fair value through other comprehensive income - 120 120 - - 120 Remeasurement of defined benefit obligations - (1,108) (1,108) - (362) (1,470) Exchange gains on translation of foreign operations - 7,457 7,457 - 314 7,771 Exchange losses reclassified to profit or loss - 339 339 - 3 342 Losses on cash flow hedges - (1,033) (1,033) - (26) (1,059) Losses on net investment hedges - (1,308) (1,308) - (333) (1,641) Reclassification adjustments for hedging gains included in profit or loss - (1,735) (1,735) - - (1,735) Share of other comprehensive income of associated companies - 1,183 1,183 - 146 1,329 Share of other comprehensive income of joint ventures - 3,065 3,065 - 932 3,997 Tax relating to components of other comprehensive income (losses) - 287 287 - 93 380 Other comprehensive income, net of tax, under Previous GAAP - 7,985 7,985 - 767 8,752 Effect on adoption of IFRS: Exchange losses reclassified to profit or loss - (339) (339) - (3) (342) Other comprehensive income, net of tax, under IFRS - 7,646 7,646 - 764 8,410 Total comprehensive income under IFRS - 31,485 31,485 172 7,304 38,961 Impact of hyperinflation under Previous GAAP / IFRS - 82 82 - 21 103 Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2022 - (7,989) (7,989) - - (7,989) Dividends paid relating to 2023 - (2,896) (2,896) - - (2,896) Dividends paid to non-controlling interests - - - - (4,744) (4,744) Distributions paid on perpetual capital securities - - - (167) - (167) Recognition of put option liabilities arising from business combinations - (148) (148) - - (148) Unclaimed dividends write back - 15 15 - - 15 Relating to purchase of a subsidiary company - - - - 8 8 Relating to purchase of non-controlling interests - (34) (34) - 70 36 Relating to partial disposal of subsidiary companies - 7 7 - 54 61 - (10,963) (10,963) (167) (4,591) (15,721) At 31 December 2023 under IFRS 246,802 297,233 544,035 4,566 121,948 670,549 Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 175 of 197
Page 176
45 Reconciliations between IFRS and Previous GAAP (continued) (l) Consolidated Statement of Cash Flows for the year ended 31 December 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 75,416 - 75,416 Interest expenses and other finance costs paid (net of capitalisation) (12,083) - (12,083) Tax paid (3,931) - (3,931) Funds from operations (before principal elements of lease payments) 59,402 - 59,402 Changes in working capital (7,965) - (7,965) Net cash from operating activities 51,437 - 51,437 Investing activities Purchase of fixed assets (21,670) - (21,670) Additions to telecommunications licences (1,956) - (1,956) Additions to brand names and other rights (1,675) - (1,675) Purchase of subsidiary companies, net of cash acquired (55) - (55) Additions to unlisted investments (74) - (74) Repayments of loans from associated companies and joint ventures 2,829 - 2,829 Purchase of and advances to associated companies and joint ventures (819) - (819) Proceeds from disposal of fixed assets 168 - 168 Proceeds from disposal of subsidiary companies, net of cash disposed 2,563 - 2,563 Proceeds from disposal of financial instruments 2,451 - 2,451 Proceeds from partial disposal / disposal of associated companies and joint ventures 734 - 734 Proceeds from disposal of other unlisted investments 74 - 74 Cash flows used in investing activities before additions to / disposal of liquid funds and other listed investments (17,430) - (17,430) Disposal of liquid funds and other listed investments 2,088 - 2,088 Additions to liquid funds and other listed investments (73) - (73) Cash flows used in investing activities (15,415) - (15,415) Net cash inflow before financing activities 36,022 - 36,022 Financing activities New borrowings 58,211 - 58,211 Repayment of borrowings (75,361) - (75,361) Principal elements of lease payments (14,476) - (14,476) Net loans from non-controlling shareholders 527 - 527 Proceeds from partial disposal of subsidiary companies 61 - 61 Dividends paid to ordinary shareholders (10,885) - (10,885) Dividends paid to non-controlling interests (4,694) - (4,694) Distributions paid on perpetual capital securities (167) - (167) Cash flows used in financing activities (46,784) - (46,784) Decrease in cash and cash equivalents (10,762) - (10,762) Cash and cash equivalents at 1 January 2023 138,085 - 138,085 Cash and cash equivalents at 31 December 2023 127,323 - 127,323 CKHH 2025 Interim Results Financial Statements Page 176 of 197
Page 177
45 Reconciliations between IFRS and Previous GAAP (continued) (m) Consolidated Income Statement for the six months ended 30 June 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Revenue 136,451 - 136,451 Cost of inventories sold (50,823) - (50,823) Staff costs (20,539) - (20,539) Expensed customer acquisition and retention costs (7,471) - (7,471) Depreciation and amortisation (19,826) - (19,826) Other expenses and losses (24,351) - (24,351) Other income and gains 466 - 466 Share of profits less losses of: Associated companies 3,908 - 3,908 Joint ventures 4,633 - 4,633 22,448 - 22,448 Interest expenses and other finance costs (6,630) - (6,630) Profit before tax 15,818 - 15,818 Current tax charge (2,063) - (2,063) Deferred tax charge (198) - (198) Profit after tax 13,557 - 13,557 Profit attributable to non-controlling interests and holders of perpetual capital securities (3,352) - (3,352) Profit attributable to ordinary shareholders 10,205 - 10,205 CKHH 2025 Interim Results Financial Statements Page 177 of 197
Page 178
45 Reconciliations between IFRS and Previous GAAP (continued) (n) Consolidated Statement of Comprehensive Income for the six months ended 30 June 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Profit after tax 13,557 - 13,557 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income (377) - (377) Remeasurement of defined benefit obligations 498 - 498 Share of other comprehensive income (losses) of associated companies (116) - (116) Share of other comprehensive income (losses) of joint ventures (910) - (910) Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss (112) - (112) (1,017) - (1,017) Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income 19 - 19 Exchange losses on translation of foreign operations (4,376) - (4,376) Losses on cash flow hedges (27) - (27) Gains on net investment hedges 635 - 635 Share of other comprehensive income (losses) of associated companies (2,141) - (2,141) Share of other comprehensive income (losses) of joint ventures (2,336) - (2,336) Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss 2 - 2 (8,224) - (8,224) Other comprehensive income (losses), net of tax (9,241) - (9,241) Total comprehensive income 4,316 - 4,316 Total comprehensive income attributable to non-controlling interests and holders of perpetual capital securities (2,112) - (2,112) Total comprehensive income attributable to ordinary shareholders 2,204 - 2,204 CKHH 2025 Interim Results Financial Statements Page 178 of 197
Page 179
45 Reconciliations between IFRS and Previous GAAP (continued) (o) Consolidated Statement of Financial Position at 30 June 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Non-current assets Fixed assets 112,848 - 112,848 Right-of-use assets 58,342 - 58,342 Telecommunications licences 62,630 - 62,630 Brand names and other rights 81,105 - 81,105 Goodwill 268,714 - 268,714 Associated companies 142,625 - 142,625 Interests in joint ventures 156,318 - 156,318 Deferred tax assets 20,520 - 20,520 Liquid funds and other listed investments 11,477 - 11,477 Other non-current assets 20,269 - 20,269 934,848 - 934,848 Current assets Cash and cash equivalents 131,599 - 131,599 Inventories 25,162 - 25,162 Trade receivables and other current assets 46,878 - 46,878 203,639 - 203,639 Current liabilities Bank and other debts 69,327 - 69,327 Interest bearing loan from a non-controlling shareholder 2,007 - 2,007 Current tax liabilities 3,703 - 3,703 Lease liabilities 12,415 - 12,415 Trade payables and other current liabilities 79,345 - 79,345 166,797 - 166,797 Net current assets 36,842 - 36,842 Total assets less current liabilities 971,690 - 971,690 Non-current liabilities Bank and other debts 208,690 - 208,690 Interest bearing loans from non-controlling shareholders 1,134 - 1,134 Lease liabilities 51,691 - 51,691 Deferred tax liabilities 19,578 - 19,578 Pension obligations 3,088 - 3,088 Other non-current liabilities 30,549 - 30,549 314,730 - 314,730 Net assets 656,960 - 656,960 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 292,639 - 292,639 Total ordinary shareholders’ funds 539,441 - 539,441 Non-controlling interests 117,519 - 117,519 Total equity 656,960 - 656,960 CKHH 2025 Interim Results Financial Statements Page 179 of 197
Page 180
45 Reconciliations between IFRS and Previous GAAP (continued) (p) Consolidated Statement of Changes in Equity for the six months ended 30 June 2024 Holders of Share capital Total ordinary perpetual Non- and share shareholders’ capital controlling Total premium Reserves funds securities interests equity HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2024 under Previous GAAP 246,802 297,233 544,035 4,566 121,948 670,549 Effect on adoption of IFRS - - - - - - At 1 January 2024 under IFRS 246,802 297,233 544,035 4,566 121,948 670,549 Profit for the period under Previous GAAP - 10,205 10,205 71 3,281 13,557 Effect on adoption of IFRS - - - - - - Profit for the period under IFRS - 10,205 10,205 71 3,281 13,557 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - (377) (377) - - (377) Changes in fair value of debt instruments at fair value through other comprehensive income - 19 19 - - 19 Remeasurement of defined benefit obligations - 397 397 - 101 498 Exchange losses on translation of foreign operations - (3,678) (3,678) - (698) (4,376) Losses on cash flow hedges - (24) (24) - (3) (27) Gains on net investment hedges - 481 481 - 154 635 Share of other comprehensive income (losses) of associated companies - (2,112) (2,112) - (145) (2,257) Share of other comprehensive income (losses) of joint ventures - (2,621) (2,621) - (625) (3,246) Tax relating to components of other comprehensive income (losses) - (86) (86) - (24) (110) Other comprehensive income (losses), net of tax, under Previous GAAP - (8,001) (8,001) - (1,240) (9,241) Effect on adoption of IFRS - - - - - - Other comprehensive income (losses), net of tax, under IFRS - (8,001) (8,001) - (1,240) (9,241) Total comprehensive income under IFRS - 2,204 2,204 71 2,041 4,316 Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2023 - (6,798) (6,798) - - (6,798) Dividends paid to non-controlling interests - - - - (5,954) (5,954) Distributions paid on perpetual capital securities - - - (162) - (162) Redemption of perpetual capital securities - - - (4,475) - (4,475) Equity contribution from non-controlling interests - - - - 27 27 Relating to disposal of subsidiary companies - - - - (543) (543) - (6,798) (6,798) (4,637) (6,470) (17,905) At 30 June 2024 under IFRS 246,802 292,639 539,441 - 117,519 656,960 Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 180 of 197
Page 181
45 Reconciliations between IFRS and Previous GAAP (continued) (q) Consolidated Statement of Cash Flows for the six months ended 30 June 2024 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 37,035 - 37,035 Interest expenses and other finance costs paid (net of capitalisation) (6,567) - (6,567) Tax paid (2,274) - (2,274) Funds from operations (before principal elements of lease payments) 28,194 - 28,194 Changes in working capital (5,229) - (5,229) Net cash from operating activities 22,965 - 22,965 Investing activities Purchase of fixed assets (8,817) - (8,817) Additions to telecommunications licences (60) - (60) Additions to brand names and other rights (751) - (751) Purchase of subsidiary companies, net of cash acquired (10) - (10) Additions to unlisted investments (22) - (22) Repayments of loans from associated companies and joint ventures 350 - 350 Purchase of and advances to associated companies and joint ventures (1,604) - (1,604) Proceeds from disposal of fixed assets 115 - 115 Proceeds from disposal of subsidiary companies, net of cash disposed 333 - 333 Proceeds from partial disposal / disposal of associated companies and joint ventures 179 - 179 Proceeds from disposal of other unlisted investments 262 - 262 Cash flows used in investing activities before additions to / disposal of liquid funds and other listed investments (10,025) - (10,025) Disposal of liquid funds and other listed investments 3,297 - 3,297 Additions to liquid funds and other listed investments (75) - (75) Cash flows used in investing activities (6,803) - (6,803) Net cash inflow before financing activities 16,162 - 16,162 Financing activities New borrowings 32,341 - 32,341 Repayment of borrowings (19,817) - (19,817) Principal elements of lease payments (7,370) - (7,370) Net loans to non-controlling shareholders (21) - (21) Issue of equity securities by subsidiary companies to non-controlling shareholders 27 - 27 Redemption of perpetual capital securities (4,180) - (4,180) Dividends paid to ordinary shareholders (6,798) - (6,798) Dividends paid to non-controlling interests (5,906) - (5,906) Distributions paid on perpetual capital securities (162) - (162) Cash flows used in financing activities (11,886) - (11,886) Increase in cash and cash equivalents 4,276 - 4,276 Cash and cash equivalents at 1 January 2024 127,323 - 127,323 Cash and cash equivalents at 30 June 2024 131,599 - 131,599 CKHH 2025 Interim Results Financial Statements Page 181 of 197
Page 182
45 Reconciliations between IFRS and Previous GAAP (continued) (r) Consolidated Income Statement for the six months ended 30 June 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Revenue 133,377 - 133,377 Cost of inventories sold (51,121) - (51,121) Staff costs (19,445) - (19,445) Expensed customer acquisition and retention costs (7,005) - (7,005) Depreciation and amortisation (19,675) - (19,675) Other expenses and losses (24,573) 250 (24,323) Other income and gains 2,047 87 2,134 Share of profits less losses of: Associated companies 4,080 - 4,080 Joint ventures 3,720 - 3,720 21,405 337 21,742 Interest expenses and other finance costs (5,687) - (5,687) Profit before tax 15,718 337 16,055 Current tax charge (1,573) - (1,573) Deferred tax credit 198 - 198 Profit after tax 14,343 337 14,680 Profit attributable to non-controlling interests and holders of perpetual capital securities (3,135) (3) (3,138) Profit attributable to ordinary shareholders 11,208 334 11,542 CKHH 2025 Interim Results Financial Statements Page 182 of 197
Page 183
45 Reconciliations between IFRS and Previous GAAP (continued) (s) Consolidated Statement of Comprehensive Income for the six months ended 30 June 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Profit after tax 14,343 337 14,680 Other comprehensive income (losses) Items that will not be reclassified to profit or loss Changes in fair value of equity instruments at fair value through other comprehensive income 605 - 605 Remeasurement of defined benefit obligations 101 - 101 Share of other comprehensive income (losses) of associated companies (539) - (539) Share of other comprehensive income of joint ventures 94 - 94 Tax relating to components of other comprehensive income (losses) that will not be reclassified to profit or loss (36) - (36) 225 - 225 Items that may be reclassified to profit or loss Changes in fair value of debt instruments at fair value through other comprehensive income (4) - (4) Exchange gains on translation of foreign operations 8,941 - 8,941 Exchange losses reclassified to profit or loss 337 (337) - Losses on cash flow hedges (1,145) - (1,145) Losses on net investment hedges (1,378) - (1,378) Reclassification adjustments for hedging gains included in profit or loss (1,735) - (1,735) Share of other comprehensive income of associated companies 2,587 - 2,587 Share of other comprehensive income of joint ventures 4,181 - 4,181 Tax relating to components of other comprehensive income (losses) that may be reclassified to profit or loss (1) - (1) 11,783 (337) 11,446 Other comprehensive income, net of tax 12,008 (337) 11,671 Total comprehensive income 26,351 - 26,351 Total comprehensive income attributable to non-controlling interests and holders of perpetual capital securities (4,324) - (4,324) Total comprehensive income attributable to ordinary shareholders 22,027 - 22,027 CKHH 2025 Interim Results Financial Statements Page 183 of 197
Page 184
45 Reconciliations between IFRS and Previous GAAP (continued) (t) Consolidated Statement of Financial Position at 30 June 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Non-current assets Fixed assets 116,991 - 116,991 Right-of-use assets 62,655 - 62,655 Telecommunications licences 63,739 - 63,739 Brand names and other rights 84,122 - 84,122 Goodwill 270,548 - 270,548 Associated companies 142,603 - 142,603 Interests in joint ventures 155,144 - 155,144 Deferred tax assets 19,651 - 19,651 Liquid funds and other listed investments 17,995 - 17,995 Other non-current assets 13,622 - 13,622 947,070 - 947,070 Current assets Cash and cash equivalents 128,740 - 128,740 Inventories 24,742 - 24,742 Trade receivables and other current assets 58,282 - 58,282 211,764 - 211,764 Current liabilities Bank and other debts 43,104 - 43,104 Current tax liabilities 3,623 - 3,623 Lease liabilities 13,445 - 13,445 Trade payables and other current liabilities 84,285 - 84,285 144,457 - 144,457 Net current assets 67,307 - 67,307 Total assets less current liabilities 1,014,377 - 1,014,377 Non-current liabilities Bank and other debts 239,740 - 239,740 Interest bearing loans from non-controlling shareholders 2,549 - 2,549 Lease liabilities 55,640 - 55,640 Deferred tax liabilities 19,525 - 19,525 Pension obligations 2,208 - 2,208 Other non-current liabilities 32,429 - 32,429 352,091 - 352,091 Net assets 662,286 - 662,286 Capital and reserves Share capital 3,830 - 3,830 Share premium 242,972 - 242,972 Reserves 290,546 - 290,546 Total ordinary shareholders’ funds 537,348 - 537,348 Perpetual capital securities 4,483 - 4,483 Non-controlling interests 120,455 - 120,455 Total equity 662,286 - 662,286 CKHH 2025 Interim Results Financial Statements Page 184 of 197
Page 185
45 Reconciliations between IFRS and Previous GAAP (continued) (u) Consolidated Statement of Changes in Equity for the six months ended 30 June 2023 Holders of Share capital Total ordinary perpetual Non- and share shareholders’ capital controlling Total premium Reserves funds securities interests equity HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 under Previous GAAP 246,802 276,711 523,513 4,561 119,235 647,309 Effect on adoption of IFRS - - - - - - At 1 January 2023 under IFRS 246,802 276,711 523,513 4,561 119,235 647,309 Profit for the period under Previous GAAP - 11,208 11,208 89 3,046 14,343 Effect on adoption of IFRS - 334 334 - 3 337 Profit for the period under IFRS - 11,542 11,542 89 3,049 14,680 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - 605 605 - - 605 Changes in fair value of debt instruments at fair value through other comprehensive income - (4) (4) - - (4) Remeasurement of defined benefit obligations - 85 85 - 16 101 Exchange gains on translation of foreign operations - 8,655 8,655 - 286 8,941 Exchange losses reclassified to profit or loss - 334 334 - 3 337 Losses on cash flow hedges - (1,132) (1,132) - (13) (1,145) Losses on net investment hedges - (1,095) (1,095) - (283) (1,378) Reclassification adjustments for hedging gains included in profit or loss - (1,735) (1,735) - - (1,735) Share of other comprehensive income of associated companies - 1,822 1,822 - 226 2,048 Share of other comprehensive income of joint ventures - 3,314 3,314 - 961 4,275 Tax relating to components of other comprehensive income (losses) - (30) (30) - (7) (37) Other comprehensive income, net of tax, - 10,819 10,819 - 1,189 12,008 under Previous GAAP Effect on adoption of IFRS: Exchange losses reclassified to profit or loss - (334) (334) - (3) (337) Other comprehensive income, net of tax, under IFRS - 10,485 10,485 - 1,186 11,671 Total comprehensive income under IFRS - 22,027 22,027 89 4,235 26,351 Impact of hyperinflation under Previous GAAP / IFRS - (21) (21) - (5) (26) Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2022 - (7,989) (7,989) - - (7,989) Dividends paid to non-controlling interests - - - - (3,052) (3,052) Distributions paid on perpetual capital securities - - - (167) - (167) Recognition of put option liabilities arising from business combinations - (148) (148) - - (148) Relating to purchase of a subsidiary company - - - - 8 8 Relating to purchase of non-controlling interests - (34) (34) - 34 - - (8,192) (8,192) (167) (3,015) (11,374) At 30 June 2023 under IFRS 246,802 290,546 537,348 4,483 120,455 662,286 Attributable to Ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 185 of 197
Page 186
45 Reconciliations between IFRS and Previous GAAP (continued) (v) Consolidated Statement of Cash Flows for the six months ended 30 June 2023 Under Remeasurements Previous and Under GAAP reclassifications IFRS HK$ million HK$ million HK$ million Operating activities Cash generated from operating activities before interest expenses and other finance costs, tax paid and changes in working capital 35,553 - 35,553 Interest expenses and other finance costs paid (net of capitalisation) (5,621) - (5,621) Tax paid (1,760) - (1,760) Funds from operations (before principal elements of lease payments) 28,172 - 28,172 Changes in working capital (6,981) - (6,981) Net cash from operating activities 21,191 - 21,191 Investing activities Purchase of fixed assets (9,746) - (9,746) Additions to telecommunications licences (1,009) - (1,009) Additions to brand names and other rights (649) - (649) Purchase of subsidiary companies, net of cash acquired (79) - (79) Additions to unlisted investments (39) - (39) Repayments of loans from associated companies and joint ventures 2,241 - 2,241 Purchase of and advances to associated companies and joint ventures (95) - (95) Proceeds from disposal of fixed assets 19 - 19 Proceeds from disposal of subsidiary companies, net of cash disposed 2,563 - 2,563 Proceeds from disposal of joint ventures 723 - 723 Proceeds from disposal of other unlisted investments 74 - 74 Cash flows used in investing activities before additions to / disposal of liquid funds and other listed investments (5,997) - (5,997) Disposal of liquid funds and other listed investments 15 - 15 Additions to liquid funds and other listed investments (65) - (65) Cash flows used in investing activities (6,047) - (6,047) Net cash inflow before financing activities 15,144 - 15,144 Financing activities New borrowings 38,122 - 38,122 Repayment of borrowings (44,012) - (44,012) Principal elements of lease payments (7,500) - (7,500) Net loans to non-controlling shareholders (30) - (30) Dividends paid to ordinary shareholders (7,989) - (7,989) Dividends paid to non-controlling interests (2,913) - (2,913) Distributions paid on perpetual capital securities (167) - (167) Cash flows used in financing activities (24,489) - (24,489) Decrease in cash and cash equivalents (9,345) - (9,345) Cash and cash equivalents at 1 January 2023 138,085 - 138,085 Cash and cash equivalents at 30 June 2023 128,740 - 128,740 CKHH 2025 Interim Results Financial Statements Page 186 of 197
Page 187
45 Reconciliations between IFRS and Previous GAAP (continued) (w) Consolidated reserves at 31 December 2024 Retained Exchange Hedging profit reserve reserve Others Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2024 under Previous GAAP 669,173 (29,260) 2,618 (345,298) 297,233 Effect on adoption of IFRS (39,864) 39,864 - - - At 1 January 2024 under IFRS 629,309 10,604 2,618 (345,298) 297,233 Profit for the year under Previous GAAP 17,088 - - - 17,088 Effect on adoption of IFRS - - - - - Profit for the year under IFRS 17,088 - - - 17,088 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - - - (528) (528) Changes in fair value of debt instruments at fair value through other comprehensive income - - - 126 126 Remeasurement of defined benefit obligations 646 - - - 646 Exchange losses on translation of foreign operations - (8,156) - - (8,156) Losses on cash flow hedges - - (122) - (122) Gains on net investment hedges - 1,123 - - 1,123 Losses in other reserves related to subsidiaries disposed during the year transferred directly to retained profit (24) - - 24 - Share of other comprehensive income (losses) of associated companies (68) (5,101) (130) (21) (5,320) Share of other comprehensive income (losses) of joint ventures (721) (4,489) 241 - (4,969) Tax relating to components of other comprehensive income (losses) (71) - 4 - (67) Other comprehensive income (losses), net of tax, under Previous GAAP (238) (16,623) (7) (399) (17,267) Effect on adoption of IFRS - - - - - Other comprehensive income (losses), net of tax, under IFRS (238) (16,623) (7) (399) (17,267) Transfer of losses on disposal of equity securities at FVOCI to retained profit under Previous GAAP / IFRS (682) - - 682 - Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2023 (6,798) - - - (6,798) Dividends paid relating to 2024 (2,635) - - - (2,635) Unclaimed dividends write back 9 - - - 9 Relating to purchase of non-controlling interests - - - (37) (37) Relating to partial disposal of subsidiary companies - - - 320 320 At 31 December 2024 under IFRS 636,053 (6,019) 2,611 (344,732) 287,913 Attributable to ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 187 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (x) Consolidated reserves at 31 December 2023 Retained Exchange Hedging profit reserve reserve Others Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 under Previous GAAP 657,443 (40,203) 5,332 (345,861) 276,711 Effect on adoption of IFRS (40,203) 40,203 - - - At 1 January 2023 under IFRS 617,240 - 5,332 (345,861) 276,711 Profit for the year under Previous GAAP 23,500 - - - 23,500 Effect on adoption of IFRS 339 - - - 339 Profit for the year under IFRS 23,839 - - - 23,839 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - - - 718 718 Changes in fair value of debt instruments at fair value through other comprehensive income - - - 120 120 Remeasurement of defined benefit obligations (1,108) - - - (1,108) Exchange gains on translation of foreign operations - 7,457 - - 7,457 Exchange losses reclassified to profit or loss - 339 - - 339 Losses on cash flow hedges - - (1,033) - (1,033) Losses on net investment hedges - (1,308) - - (1,308) Reclassification adjustments for hedging gains included in profit or loss - - (1,735) - (1,735) Share of other comprehensive income (losses) of associated companies (578) 1,785 (132) 108 1,183 Share of other comprehensive income of joint ventures 194 2,670 183 18 3,065 Tax relating to components of other comprehensive income (losses) 284 - 3 - 287 Other comprehensive income (losses), net of tax, under Previous GAAP (1,208) 10,943 (2,714) 964 7,985 Effect on adoption of IFRS: Exchange losses reclassified to profit or loss - (339) - - (339) Other comprehensive income (losses), net of tax, under IFRS (1,208) 10,604 (2,714) 964 7,646 Impact of hyperinflation under Previous GAAP / IFRS 82 - - - 82 Transfer of gains on disposal of equity securities at FVOCI to retained profit under Previous GAAP / IFRS 226 - - (226) - Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2022 (7,989) - - - (7,989) Dividends paid relating to 2023 (2,896) - - - (2,896) Recognition of put option liabilities arising from business combinations - - - (148) (148) Unclaimed dividends write back 15 - - - 15 Relating to purchase of non-controlling interests - - - (34) (34) Relating to partial disposal of subsidiary companies - - - 7 7 At 31 December 2023 under IFRS 629,309 10,604 2,618 (345,298) 297,233 Attributable to ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 188 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (y) Consolidated reserves at 30 June 2024 Attributable to ordinary shareholders Retained Exchange Hedging profit reserve reserve Others Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2024 under Previous GAAP 669,173 (29,260) 2,618 (345,298) 297,233 Effect on adoption of IFRS (39,864) 39,864 - - - At 1 January 2024 under IFRS 629,309 10,604 2,618 (345,298) 297,233 Profit for the period under Previous GAAP 10,205 - - - 10,205 Effect on adoption of IFRS - - - - - Profit for the period under IFRS 10,205 - - - 10,205 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - - - (377) (377) Changes in fair value of debt instruments at fair value through other comprehensive income - - - 19 19 Remeasurement of defined benefit obligations 397 - - - 397 Exchange losses on translation of foreign operations - (3,678) - - (3,678) Losses on cash flow hedges - - (24) - (24) Gains on net investment hedges - 481 - - 481 Losses in other reserves related to subsidiaries disposed during the period transferred directly to retained profit (24) - - 24 - Share of other comprehensive income (losses) of associated companies (150) (2,052) 80 10 (2,112) Share of other comprehensive income (losses) of joint ventures (694) (2,199) 272 - (2,621) Tax relating to components of other comprehensive income (losses) (88) - 2 - (86) Other comprehensive income (losses), net of tax, under Previous GAAP (559) (7,448) 330 (324) (8,001) Effect on adoption of IFRS - - - - - Other comprehensive income (losses), net of tax, under IFRS (559) (7,448) 330 (324) (8,001) Transfer of net losses on disposal of equity securities at FVOCI to retained profit under Previous GAAP / IFRS (80) - - 80 - Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2023 (6,798) - - - (6,798) At 30 June 2024 under IFRS 632,077 3,156 2,948 (345,542) 292,639 CKHH 2025 Interim Results Financial Statements Page 189 of 197
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45 Reconciliations between IFRS and Previous GAAP (continued) (z) Consolidated reserves at 30 June 2023 Retained Exchange Hedging profit reserve reserve Others Total HK$ million HK$ million HK$ million HK$ million HK$ million At 1 January 2023 under Previous GAAP 657,443 (40,203) 5,332 (345,861) 276,711 Effect on adoption of IFRS (40,203) 40,203 - - - At 1 January 2023 under IFRS 617,240 - 5,332 (345,861) 276,711 Profit for the period under Previous GAAP 11,208 - - - 11,208 Effect on adoption of IFRS 334 - - - 334 Profit for the period under IFRS 11,542 - - - 11,542 Other comprehensive income (losses) under Previous GAAP Changes in fair value of equity instruments at fair value through other comprehensive income - - - 605 605 Changes in fair value of debt instruments at fair value through other comprehensive income - - - (4) (4) Remeasurement of defined benefit obligations 85 - - - 85 Exchange gains on translation of foreign operations - 8,655 - - 8,655 Exchange losses reclassified to profit or loss - 334 - - 334 Losses on cash flow hedges - - (1,132) - (1,132) Losses on net investment hedges - (1,095) - - (1,095) Reclassification adjustments for hedging gains included in profit or loss - - (1,735) - (1,735) Share of other comprehensive income (losses) of associated companies 20 2,208 156 (562) 1,822 Share of other comprehensive income of joint ventures 67 2,720 525 2 3,314 Tax relating to components of other comprehensive income (losses) (29) - (1) - (30) Other comprehensive income (losses), net of tax, under Previous GAAP 143 12,822 (2,187) 41 10,819 Effect on adoption of IFRS: Exchange losses reclassified to profit or loss - (334) - - (334) Other comprehensive income (losses), net of tax, under IFRS 143 12,488 (2,187) 41 10,485 Impact of hyperinflation under Previous GAAP / IFRS (21) - - - (21) Transfer of gain on disposal of equity securities at FVOCI to retained profit under Previous GAAP / IFRS 13 - - (13) - Transactions with owners in their capacity as owners under Previous GAAP / IFRS: Dividends paid relating to 2022 (7,989) - - - (7,989) Recognition of put option liabilities arising from business combinations - - - (148) (148) Relating to purchase of non-controlling interests - - - (34) (34) At 30 June 2023 under IFRS 620,928 12,488 3,145 (346,015) 290,546 Attributable to ordinary shareholders CKHH 2025 Interim Results Financial Statements Page 190 of 197
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Group Capital Resources and Liquidity Treasury Management The Group’s treasury function sets financial risk management policies in accordance with policies and procedures that are approved by the Executive Directors, and which are also subject to periodic review by the Group’s internal audit function. The Group’s treasury policies are designed to mitigate the impact of fluctuations in interest rates and exchange rates on the Group’s overall financial position and to minimise the Group’s financial risks. The Group’s treasury function operates as a centralised service for managing financial risks, including interest rate and foreign exchange risks, and for providing cost-efficient funding to the Group and its companies. It manages the majority of the Group’s funding needs, interest rate, foreign currency and credit risk exposures. It is the Group’s policy not to have credit rating triggers that would accelerate the maturity dates of the Group’s borrowings. The Group uses interest rate and foreign currency swaps and forward contracts as appropriate for risk management purposes only, for hedging transactions and for managing the Group’s exposure to interest rate and foreign exchange rate fluctuations. The Group generally does not enter into foreign currency hedges in respect of its foreign currency earnings and no derivative instruments to hedge the Group’s earnings were entered during the period or remain outstanding at the end of the period. It is the Group’s policy not to enter into derivative transactions for speculative purposes. It is also the Group’s policy not to invest liquidity in financial products, including hedge funds or similar vehicles, that have significant underlying leverage or derivative exposure. Cash Management and Funding The Group operates a central cash management system for all of its unlisted subsidiaries. Except for listed and certain overseas entities conducting businesses in non-HK or non-US dollar currencies, the Group generally obtains long-term financing at the Group level to on-lend or contribute as equity to its subsidiaries and associated companies to meet their funding requirements and provide more cost-efficient financing. These borrowings include a range of capital market issues and bank borrowings, for which the proportions will change depending upon financial market conditions and projected interest rates. The Group regularly and closely monitors its overall debt position and reviews its funding costs and maturity profile to facilitate refinancing. Interest Rate Exposure The Group manages its interest rate exposure with a focus on reducing the Group’s overall cost of debt and exposure to changes in interest rates. When considered appropriate, the Group uses derivatives such as interest rate swaps and cross-currency swaps to manage its interest rate exposure. The Group’s main interest rate exposure relates to US dollar, British Pound, Euro and HK dollar borrowings. At 30 June 2025, approximately 37% of the Group’s total principal amount of bank and other debts were at floating rates and the remaining 63% were at fixed rates (31 December 2024: 34% floating; 66% fixed). The Group has entered into various interest rate agreements with major financial institution counterparties to swap approximately HK$6,294 million principal amount of floating interest rate borrowings that were used to finance long term investments have been swapped to fixed interest rate borrowings. After taking into consideration these interest rate swaps, approximately 34% of the Group’s total principal amount of bank and other debts were at floating rates and the remaining 66% were at fixed rates at 30 June 2025 (31 December 2024: 33% floating; 67% fixed). All of the aforementioned interest rate derivatives are designated as hedges and these hedges are considered highly effective. The Group’s weighted average cost of debt for the period ended 30 June 2025 is 3.4% (30 June 2024 – 3.6%). Foreign Currency Exposure For subsidiaries, associated companies, joint arrangements, branches and other investments (the activities of which are based or conducted in non-HK dollar or non-US dollar), the Group generally endeavours to establish a natural hedge for debt financing with an appropriate level of borrowings in those same currencies. For businesses (the activities of which are based or conducted in non-HK dollar or non-US dollar) that are in the development phase, or where borrowings in local currency are not or are no longer attractive, the Group may not borrow in the local currency or may repay existing borrowings and monitor the development of the businesses’ cash flow and the relevant debt markets with a view to refinance these businesses with local currency borrowings in the future when conditions are more appropriate. Exposure to movements in exchange rates for individual transactions (such as major procurement contracts) directly related to its underlying businesses is minimised by using forward foreign exchange contracts and currency swaps where active markets for the relevant currencies exist. The Group generally does not enter into foreign currency hedges in respect of its long-term equity investments in foreign operations, except in relation to certain infrastructure investments. Group Capital Resources and Other Information CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 191 of 197
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Note 1: Under Post-IFRS 16 basis, EBITDA for the first half of 2025 was HK$56,983 million (30 June 2024 – HK$63,422 million). Note 2: 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 billion. Note 3: Under Post-IFRS 16 basis, consolidated net debt as at 30 June 2025 was HK$119,222 million (31 December 2024 – HK$128,558 million). Note 4: Under Post-IFRS 16 basis, net assets as at 30 June 2025 was HK$675,865 million (31 December 2024 – HK$652,592 million). The Group has operations in over 50 countries and conducts businesses in around 50 currencies. The Group’s functional currency for reporting purposes is Hong Kong Dollars and the Group’s reported results in Hong Kong Dollars are exposed to exchange translation on its foreign currency earnings, net debt and net assets, in particular for Euro and British Pounds. Reported EBITDA (1) for the first half of 2025 was HK$44,998 million, and underlying EBITDA (excluding one-time non-cash loss arising from the UK merger and related impacts) (2) was HK$55,920 million, of which 54% was derived from European operations, including 22% from the UK. At 30 June 2025, of the Group’s total principal amount of bank and other debts, 32% and 3% were denominated in Euro and British Pounds respectively, whilst liquid assets comprised 26% Euro and 11% British Pounds denominated cash and cash equivalents. As a result, 38% of the Group’s consolidated net debt (3) of HK$119,321 million was denominated in Euro, with British Pounds in a net cash position. Net assets (4) was HK$688,894 million, with 27% and 20% attributable to Continental Europe and the UK operations respectively. At 30 June 2025, the Group’s total principal amount of bank and other debts were denominated as follows: 32% in Euro, 44% in US dollars, 12% in HK dollars, 3% in British Pounds and 9% in other currencies. At 30 June 2025, the Group does not have any currency swap arrangements with banks. For purposes of illustrating the Group’s currency sensitivity, based on the results for the first half of 2025, a 10% depreciation of British Pounds would result in a HK$1.2 billion decrease in EBITDA, a HK$0.2 billion decrease in NPAT, HK$0.6 billion increase in net debt and 0.3%-point increase in net debt to net total capital ratio. Similarly, a 10% depreciation of Euro would result in a HK$1.2 billion decrease in EBITDA, a HK$0.1 billion decrease in NPAT, HK$4.6 billion decrease in net debt and 0.1%-point decrease in net debt to net total capital ratio. Actual sensitivity will depend on actual results and cash flows for the period under consideration. Credit Exposure The Group’s holdings of cash, managed funds and other liquid investments, interest rate and foreign currency swaps and forward currency contracts with financial institutions expose the Group to credit risk of counterparties. The Group controls its credit risk to non-performance by its counterparties through monitoring their equity share price movements and credit ratings as well as setting approved counterparty credit limits that are regularly reviewed. The Group is also exposed to counterparties credit risk from its operating activities, particularly in its ports businesses. Such risks are continuously monitored by the management of local operations. Credit Profile Our long term credit rating from Moody’s, S&P and Fitch remained at A2 (stable outlook), A (stable outlook) and A- (stable outlook) respectively. The Group aims to maintain a capital structure that is appropriate for long-term investment grade ratings of A2 on the Moody’s Investor Service scale, A on the S&P Rating Services scale and A- on the Fitch Ratings scale. Actual credit ratings may depart from these levels from time to time due to economic circumstances. CK Hutchison Group Telecom Holdings (“CK Hutchison Group Telecom”), a wholly-owned subsidiary of the Group, obtained long term credit rating from Moody’s, S&P and Fitch at Baa1 (stable outlook), A- (stable outlook) and A- (stable outlook) respectively. CK Hutchison Group Telecom will seek to maintain its ratings by applying the same financial disciplines as the Group. Market Price Risk The Group’s main market price risk exposures relate to listed debt and equity securities described in “Liquid Assets” below and the interest rate swaps described in “Interest Rate Exposure” above. The Group’s holding of listed debt and equity securities represented approximately 6% (31 December 2024 – approximately 6%) of the cash, liquid funds and other listed investments (“liquid assets”). The Group controls this risk through active monitoring of price movements and changes in market conditions that may have an impact on the value of these financial assets and instruments. CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 192 of 197
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Liquid Assets The Group continues to maintain a robust financial position. Liquid assets amounted to HK$137,268 million at 30 June 2025, an increase of 6% from the balance of HK$129,445 million at 31 December 2024, mainly reflecting cash arising from positive funds from operations from the Group’s businesses and proceed on disposal of interest in UK, partly offset by dividend payments to ordinary and non-controlling shareholders, repayment and early repayment of certain borrowings, as well as capital expenditure and investment spending. Liquid assets were denominated as to 10% in HK dollars, 42% in US dollars, 3% in Renminbi, 26% in Euro, 11% in British Pounds and 8% in other currencies. Cash and cash equivalents represented 94% (31 December 2024 – 94%) of the liquid assets, US Treasury notes and listed debt securities 6% (31 December 2024 – 5%) and listed equity securities nil (31 December 2024 – 1%). The US Treasury notes and listed debt securities, including those held under managed funds, consisted of US Treasury notes of 77%, government and government guaranteed notes of 18% and others of 5%. All of these US Treasury notes and listed debt securities are rated at Aaa/AAA or Aa1/AA+ with an average maturity of 2.8 years on the overall portfolio. The Group has no exposure in mortgage-backed securities, collateralised debt obligations or similar asset classes. Cash Flow Consolidated funds from operations (5) (“FFO”) before cash profits from disposals, capital expenditures, investments and changes in working capital was HK$20,797 million for the first half of 2025, a decrease of 2% against the same period last year of HK$21,193 million. The Group’s capital expenditures (including licences, brand name and other rights) for the first half of 2025 amounted to HK$8,680 million (30 June 2024 – HK$9,746 million). Capital expenditures (including licences, brand name and other rights) for the ports and related services division amounted to HK$1,119 million (30 June 2024 – HK$1,110 million); for the retail division HK$897 million (30 June 2024 –HK$1,108 million); for the infrastructure division HK$132 million (30 June 2024 – HK$247 million); for CK Hutchison Group Telecom HK$6,421 million (30 June 2024 –HK$7,160 million); and for the finance and investments and others segment HK$111 million (30 June 2024 – HK$121 million). The Group’s dividends received from associated companies and joint ventures for the first half of 2025 amounted to HK$4,981 million (30 June 2024 – HK$5,707 million). Dividends received from associated companies and joint ventures for the ports and related services division amounted to HK$778 million (30 June 2024 – HK$588 million); for the retail division HK$752 million (30 June 2024 – HK$1,049 million); for the infrastructure division HK$2,683 million (30 June 2024 – HK$2,745 million); and for the finance and investments and others segment HK$768 million (30 June 2024 – HK$1,325 million). The Group’s purchases of and advances to associated companies and joint ventures amounted to HK$492 million (30 June 2024 – HK$1,604 million). Purchases of and advances to associated companies and joint ventures for the ports and related services division was HK$157 million (30 June 2024 – HK$137 million); for the infrastructure division HK$43 million (30 June 2024 – HK$1,418 million); for CK Hutchison Group Telecom HK$101 million (30 June 2024 – HK$45 million); and for the finance and investments and others segment HK$191 million (30 June 2024 – HK$4 million). Net cash inflow before financing activities (6) was HK$31,047 million, an increase of 248% compared to HK$8,926 million for the same period last year, mainly due to net proceeds from the UK merger, favourable working capital movements and lower capital expenditures, partly offset by lower dividends received from associated companies and joint ventures. The capital expenditures and investments of the Group are primarily funded by cash generated from operations, cash on hand and to the extent appropriate, by external borrowings. For further information of the Group’s capital expenditures by division and cash flow, please see Note 6(b)(v) to the Financial Statements and the “Condensed Consolidated Statement of Cash Flows” section of this Announcement. Note 5: Under Post-IFRS 16 basis, FFO for the first half of 2025 was HK$27,874 million (30 June 2024 – HK$28,194 million). Note 6: Under Post-IFRS 16 basis, net cash inflow before financing activities for the first half of 2025 was HK$38,840 million (30 June 2024 – HK$16,162 million). CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 193 of 197
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Debt Maturity and Currency Profile The Group’s total bank and other debts, including unamortised fair value adjustments from acquisitions, at 30 June 2025 amounted to HK$256,589 million (31 December 2024 – HK$259,059 million) which comprises principal amount of bank and other debts of HK$254,787 million (31 December 2024 – HK$257,104 million) and unamortised fair value adjustments arising from acquisitions of HK$1,802 million (31 December 2024 – HK$1,955 million). The Group’s total principal amount of bank and other debts at 30 June 2025 consist of 63% notes and bonds (31 December 2024 – 65%) and 37% bank and other loans (31 December 2024 – 35%). Interest bearing loans from non-controlling shareholders, which are viewed as quasi-equity, totalled HK$3,932 million as at 30 June 2025 (31 December 2024 – HK$3,471 million). The maturity profile of the Group’s total principal amount of bank and other debts at 30 June 2025 is set out below: HK$ US$ Euro GBP Others Total In the remainder of 2025 – – – – – – In 2026 1% 3% 9% 1% 1% 15% In 2027 1% 6% 1% 1% 3% 12% In 2028 4% 4% 9% 1% 4% 22% In 2029 1% 7% 7% – – 15% In 2030 – 2034 5% 18% 6% – 1% 30% In 2035 – 2044 – 2% – – – 2% Beyond 2044 – 4% – – – 4% Total 12% 44% 32% 3% 9% 100% The non-HK dollar and non-US dollar denominated loans are either directly related to the Group’s businesses in the countries of the currencies concerned, or the loans are balanced by assets in the same currencies. None of the Group’s consolidated borrowings have credit rating triggers that would accelerate the maturity dates of any outstanding consolidated Group’s debt. Changes in Debt Financing and Perpetual Capital Securities The significant financing activities for the Group in the first half of 2025 were as follows: • In January, purchased and effectively retired US$188 million (approximately HK$1,464 million) of the Group’s outstanding notes of various maturities; • In March, obtained a three year term loan facility of SEK6,700 million (approximately HK$5,159 million) and repaid a floating term loan facility of SEK6,100 million (approximately HK$4,697 million) on maturity; • In March, obtained a three year floating rate term loan facility of HK$3,880 million; • In March, obtained a five year floating rate term loan facility of HK$4,700 million; • In March, obtained two five year HK$3,900 million floating rate term loan facilities each; • In March, obtained a three year floating rate term loan facility of AUD260 million (approximately HK$1,273 million) and repaid a floating rate term loan facility of the same amount on maturity; • In April, obtained a five year floating rate term loan facility of AUD300 million (approximately HK$1,463 million) and repaid a floating rate term loan facility of the same amount on maturity; • In April, repaid EUR750 million (approximately HK$6,720 million) principal amount of fixed rate notes on maturity; • In May, repaid a floating rate term loan facility of US$2,100 million (approximately HK$16,380 million) on maturity; and • In June, through various tenders, purchased and effectively retired GBP485 million (approximately HK$5,176 million) of the Group’s outstanding notes of various maturities. CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 194 of 197
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Capital, Net Debt and Interest Coverage Ratios The Group’s total ordinary shareholders’ funds and perpetual capital securities (7) increased to HK$563,852 million as at 30 June 2025, compared to HK$543,649 million as at 31 December 2024, mainly reflecting profit for the first half of 2025, exchange gains on translation of foreign operations, as well as other items recognised directly in reserves, partly offset by the Group’s 2024 final dividends paid. As at 30 June 2025, the consolidated net debt of the Group, excluding interest bearing loans from non-controlling shareholders which are viewed as quasi-equity, was HK$119,321 million (31 December 2024 – HK$129,614 million), an 8% decrease compared to the net debt at the beginning of the year mainly due to net proceeds from the UK merger and net cash generated from operating activities, partly offset by dividend payments, capital expenditure and investment spending. The Group’s consolidated net debt to net total capital ratio (8) was 14.7% as at 30 June 2025 (31 December 2024 – 16.2%; 30 June 2024 – 17.0%).The Group’s consolidated cash and liquid investments as at 30 June 2025 were sufficient to repay all of the Group’s outstanding debt maturing before 31 December 2028 and cover 35% of outstanding debt in 2029. The Group’s consolidated cash interest expenses and other finance costs of subsidiaries, before capitalisation and net of interest income in the first half of 2025 was HK$1,701 million (30 June 2024 – HK$1,077 million). Reported EBITDA of HK$44,998 million (30 June 2024: HK$52,201 million) and FFO excluding net interest (9) of HK$22,498 million (30 June 2024 – HK$22,270 million) for the period covered consolidated net interest expenses and other finance costs 24.7 times (30 June 2024 – 44.6 times) and 13.2 times (30 June 2024 – 20.7 times) respectively. Secured Financing At 30 June 2025, assets of the Group totalling HK$1,603 million (31 December 2024 – HK$1,449 million) were pledged as security for bank loans. Borrowing Facilities Available Committed borrowing facilities available to Group companies but not drawn at 30 June 2025 amounted to the equivalent of HK$1,196 million (31 December 2024 – HK$2,762 million). Contingent Liabilities At 30 June 2025, the Group provided guarantees in respect of bank and other borrowing facilities to its associated companies and joint ventures totalling HK$10,697 million (31 December 2024 – HK$10,753 million), of which HK$9,175 million (31 December 2024 – HK$8,444 million) has been drawn down as at 30 June 2025 and also provided performance and other guarantees of HK$5,533 million (31 December 2024 – HK$4,860 million). Employee Relations At 30 June 2025, the Company and its subsidiaries employed 173,817 people (30 June 2024 – 174,878 people). The employee costs for the six-month period, excluding Directors’ emoluments, totalled HK$23,763 million (2024 – HK$22,809 million). Including the Group’s associated companies, at 30 June 2025, the Group employed 326,346 people of whom 16,170 were employed in Hong Kong. All of the Group’s subsidiaries are equal opportunity employers, with the selection and promotion of individuals based on suitability for the position offered. The salary and benefit levels of the Group’s employees are kept at a competitive level and employees are rewarded on a performance related basis within the general framework of the Group’s salary and bonus system, which is reviewed annually. The Company does not have a share option scheme for the purchase of ordinary shares in the Company. Certain subsidiaries and associates of the Group offer various equity-linked compensation elements appropriate to their sectors and markets. A wide range of benefits including medical coverage, provident funds and retirement plans and long service awards is also provided to employees. In addition, training and development programmes are provided on an on-going basis throughout the Group. Many social, sporting and recreational activities are arranged for employees on a Group-wide basis. Group employees also participated in community-oriented events. Note 7: Under Post-IFRS 16 basis, total ordinary shareholders’ funds and perpetual capital securities as at 30 June 2025 was HK$554,790 million (31 December 2024 – HK$534,715 million). Note 8: Under Post-IFRS 16 basis, net debt to net total capital ratio for the first half of 2025 was 14.9% (31 December 2024 – 16.4%; 30 June 2024 – 17.1%). Note 9: Under Post-IFRS 16 basis, FFO excluding net interest for the first half of 2025 was HK$31,087 million (30 June 2024 – HK$30,559 million). CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 195 of 197
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Purchase, Sale or Redemption of Listed Securities During the six months ended 30 June 2025, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the listed securities (including sale of treasury shares, if any) of the Company. Compliance with the Corporate Governance Code The Company strives to attain and maintain high standards of corporate governance best suited to the needs and interests of the Company and its subsidiaries (the “Group”) as it believes that an effective corporate governance framework is fundamental to promoting and safeguarding the interests of shareholders and other stakeholders and enhancing shareholder value. The Company has complied throughout the six months ended 30 June 2025 with all applicable code provisions of the Corporate Governance Code contained in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), as in force during the reporting period. Compliance with the Model Code for Securities Transactions by Directors The Board of Directors has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules as the code of conduct regulating Directors’ dealings in securities of the Company. In response to specific enquiries made, all Directors have confirmed that they have complied with the required standards set out in such code regarding their securities transactions throughout their tenure during the six months ended 30 June 2025. Review of Interim Financial Statements The unaudited condensed consolidated financial statements of the Company and its subsidiary companies for the six months ended 30 June 2025 have been reviewed by the Company’s auditor, PricewaterhouseCoopers, in accordance with Hong Kong Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified Public Accountants. The auditor’s independent review report of PricewaterhouseCoopers is set out on page 25 in the announcement. The unaudited condensed consolidated financial statements of the Company and its subsidiary companies for the six months ended 30 June 2025 have also been reviewed by the Audit Committee of the Company. Record Date for Interim Dividend The record date for determining the entitlement of shareholders (except for holders of treasury shares, if any) to the interim dividend is Tuesday, 16 September 2025. In order to qualify for the interim dividend payable on Thursday, 25 September 2025, all transfers, accompanied by the relevant share certificates, must be lodged with the Company’s Hong Kong Share Registrar (Computershare Hong Kong Investor Services Limited at Rooms 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong) for registration no later than 4:30 pm on Tuesday, 16 September 2025. CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 196 of 197
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Corporate Strategy The principal objective of the Company is to enhance long-term total return for all its stakeholders. To achieve this objective, the Group focuses on achieving recurring and sustainable earnings, cash flow and dividend growth without compromising the Group’s financial strength and stability. The Group executes disciplined management of revenue growth, margin and costs, capital and investments to return ratio targets, earnings and cash flow accretive merger and acquisition activities, as well as organic growth in sectors or geographic areas where the Group has management experience and resources. Technology transformation also remains a key initiative of the Group to capture new cost and revenue opportunities in all businesses. At the same time, the Group is committed to maintaining long-term investment grade ratings, preserving strong liquidity and flexibility, sustaining a long and balanced debt maturity profile and actively managing cash flow and working capital. The Group explores opportunities to enhance shareholders’ returns, which include potential in-market consolidation and solidifying strategic alliances with global technology partners. The Chairman’s Statement and the Operations Highlights contained in this announcement and the Operations Analysis posted on the Company’s website (http://www.ckh.com.hk/en/ir/presentation.php), include discussions and analyses of the Group’s performance, the basis on which the Group generates and preserves value in the longer term and delivers the Group’s objectives. The Group also focuses on sustainability and delivering business solutions that support social and environmental challenges, such as enabling the transition to a net-zero economy. Further information on the sustainability initiatives of the Group and its key relationships with stakeholders can also be found in the standalone Sustainability Report of the Group. Past Performance and Forward Looking Statements The performance and the results of the operations of the Group contained in the 2025 interim results announcement are historical in nature, and past performance is no guarantee of the future results of the Group. Any forward-looking statements and opinions contained within the 2025 interim results announcement are based on current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions. The Group, the Directors, employees and agents of the Group assume (a) no obligation to correct or update the forward-looking statements or opinions contained in the 2025 interim results announcement; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialise or turn out to be incorrect. As at the date of this announcement, the Directors of the Company are: Executive Directors: Non-executive Directors: Mr LI Tzar Kuoi, Victor (Chairman) Mr CHOW Kun Chee, Roland Mr FOK Kin Ning, Canning (Deputy Chairman) Mrs CHOW WOO Mo Fong, Susan Mr Frank John SIXT (Group Co-Managing Director and Group Finance Director) Mr LEE Yeh Kwong, Charles Mr LAI Kai Ming, Dominic (Group Co-Managing Director) Mr IP Tak Chuen, Edmond (Deputy Managing Director) Independent Non-executive Directors: Mr KAM Hing Lam (Deputy Managing Director) Ms CHOW Ching Yee, Cynthia Ms Edith SHIH Mr Graeme Allan JACK Mr Andrew John HUNTER Mr Philip Lawrence KADOORIE Mrs LEUNG LAU Yau Fun, Sophie Mr Paul Joseph TIGHE Ms TSIM Sin Ling, Ruth Mr WONG Kwai Lam CKHH 2025 Interim Results Group Capital Resources and Liquidity and Others Page 197 of 197