Changhe (00001) Announces Interim Results The reported profit attributable to common shareholders of HK$26.801 billion increased 3046% year over year

According to the Zhitong Finance App News, Changhe (00001) announced the results for the month ended June 30, 2026. According to the IFRS post-16 benchmark, the total reported revenue was HK$255.392 billion, up 6% year on year; the reported profit due to common shareholders was HK$26.801 billion, up 3046% year on year; basic profit attributable to common shareholders (excluding the British Telecom business) was HK$12.581 billion, up 7% year on year; the interim dividend was HK$0.7455 per share.

The Group successfully completed a number of strategic transactions in the first half of the year, effectively coped with various adverse factors, and achieved continuous basic profit growth. As a result, the Group's balance sheet was greatly strengthened, and a record low net debt to total net capital ratio of 8.1% was recorded at the end of the first half of the year.

The Group sold its interests in UK Rails and UK Power Networks to confirm the total revenue due to common shareholders of HK$17.753 billion. Furthermore, it confirmed a non-cash write-off of HK$2,222 million in respect of acquisition premiums distributed to certain infrastructure assets. At the EBITDA and EBIT levels calculated on the reporting basis, such one-time projects recorded an income of HK$20.546 billion and reported profit of HK$15.531 billion, while the VodafoneThree (VF3) merger confirmed a one-time non-cash loss and related impact of HK$10.922 billion in the first half of 2025.

In May 2026, the Group announced the sale of its remaining 49% interest in VF3 at a cost of approximately £4.3 billion. The transaction was completed on January 30, 2026, with sales proceeds of approximately HK$5.9 billion and cash consideration to be confirmed in the second half of this year. As a result, the Group's basic results for the first half of 2025 and the first half of 2026, calculated on the basis of the pre-IFRS 16 benchmark, omit the performance of the British telecommunications business. This presentation better reflects the Group's regular basic operating performance.

For the six months ended June 30, 2026, the Group achieved net basic profit of HK$12.592 billion, an increase of 6% over the first half of 2025 in the reported currency. Basic EBITDA and EBIT in reported currencies increased by 6% and 5%, respectively, compared to the same period last year, mainly due to strong performance in the port sector, steady growth in the retail sector, a significant increase in Cenovus Energy's contribution, and favorable foreign exchange changes. These favorable changes were partially offset by declining contributions from CK Hutchison Group Telecom (CKHGT) and the infrastructure sector, plus a number of non-recurring treasury revenue and non-core asset sales proceeds that were not confirmed in the first half of the year as in 2025. The decrease in the infrastructure sector's contribution is due to assets sold no longer contributing in the first half of 2026. After excluding this impact, the remaining business performance remained stable year on year.