Brief Profile

1. Nature of business
CK Asset Holdings Limited is an international firm specializing in property development,
having its headquarters and central office in Hong Kong. CK Asset has extended worldwide
via excellent investments with steady recurring revenue on a global basis, in addition to the
property operations. With investments and activities now covering continental Europe,
Australia, Canada, and the United Kingdom, it has broadened the scope to include pub
operations as well as infrastructure and utilities assets.

Their wholly-owned subsidiary green king operates an integrated brewer and pub retailer
business that employs over 38,000 employees and 2700 pubs, eateries, and hotels all over
England, Wales and Scotland.

Another subsidiary group “The CK William Group” owns and operates energy utility assets in
Australia, including Multinet Gas, Dampier Bunbury Pipeline and United Energy and Energy
Development. ista is one of the world's leading fully integrated energy management service
providers with strong market positions in European countries such as Germany, Europe and
France. Reliance Home Comfort deals primarily with Home Comfort. And ista is one of the
world's leading fully integrated energy management service providers.

2. Industry Sector
CK Asset Holdings Limited is mainly specified in their industry sector is the property
development in Hong Kong. The industry sector of telecommunication, hotel service, pub
retailers, or utility assets would be developed worldwide.

3. Operational History
CK Property Holdings Ltd originated from Cheung Kong Industrial Co., Ltd. founded by Li
Ka-shing in 1950, and then developed into a leading property development company in
Hong Kong, which was listed on the Hong Kong Stock Exchange on November 1 in 1972.

CK Assets Holdings Ltd was established in 2015 when CK Property Holdings split its real
estate holdings as part of its reorganization into another company. CK Asset Holdings
opened trading on June 3, 2015. After the reorganization, CK Property Holdings and
Hutchison Whampoa were privatized and the major public companies were replaced by CK
Hutchison Holdings and CK Asset Holdings. Immediately after the restructuring, CK Asset
Holdings became a component of the Hang Seng Index.

In 2019, the company announced the acquisition of British pub company Greene King.

4. Organization and Ownership Structure

CK Assets Holding Ltd adapted a group company organizational structure which is created
when one or more other companies are owned. In CK Assets, 7 out of 17 of the group
companies are subsidiary companies which hold over 50% shares of that company. The rest
of the group companies are the related companies which hold less than 50% shares but they
have the right to affect the company’s decision.
In addition, 46.61% of shares are held by all insiders which are the Li family, 23.25% of
shares are held by institutions. Besides, over 40% of floats are held by institutions. The
number of institutions holding shares is 376.
[Link]

5. Business Performance and Future Development

CK Assets Holding property sales in Hong Kong increased from HK$8.941 billion in 2020 to
HK$15.724 billion in 2021, an increase of 75.86%. Property sales in the mainland fell
year-on-year to HK$21.72 billion from HK$27.11 billion in 2020.

In terms of land bank, Cheung Kong Group has a developable land bank of approximately
75 million square feet, of which 4 million square feet, 67 million square feet and 4 million
square feet are located in Hong Kong, China and overseas, respectively.
[Link]

Operational Risk

CK Assets 2021 2020 2019

Total Asset Turnover 0.12 0.11 0.17

Fixed Asset 0.29 0.26 0.44

Turnover

Account Receivable 29 27.68 81.12

Turnover

Inventory Turnover 0.22 0.21 0.33

PCPD 2021 2020 2019

Total Asset Turnover 0.03 0.13 0.08

Fixed Asset 0.14 0.54 0.41

Turnover

Account Receivable 12.79 56.71 36.91

Turnover

Inventory Turnover 0.59 1.63 0.43

Country Garden 2021 2020 2019

Total Asset Turnover 0.26 0.24 0.27

Fixed Asset 16.53 16.46 18.65

Turnover

Account Receivable 10.71 8.92 9.20

 Turnover

Inventory Turnover 0.40 0.37 0.46

When it comes to the total asset turnover ratio, CK Assets have a very stable ratio within 0.1
to 0.2 in 2019 to 2021. In other words, CK Assets generate $0.12 in sales for every dollar in
assets. It is normal that the turnover rate of the property industry is lower than other
industries such as the retail industry since it is hard to transfer their assets to money by their
large-based assets. However, when it compares to the industry average and its competitors,
it shows a declining tendency. It is lower than the industry average (0.23) and the Country
Garden (0.26), and only better than Pacific Century Premium Developments Limited (as
known as PCPD) (0.03). As a result, CK Assets is not performing well in terms of the total
asset turnover rate.

In terms of the fixed assets turnover ratio, CK Assets had a higher rate (0.29) than PCPD
(0.14) but lower than Country Garden (16.53). The result is Country Garden out-performed
CK Assets, probably because CK Assets had larger-based assets but it is hard for them to
transfer it to their revenue.

Account Receivable turnover rate also showed the strength of CK Assets. It has a higher
rate (29) than Country Garden (10.71) and PCPD (12.79). In other words, they can collect
the account receivable within 12.58 days. It indicated they are more efficient to collect the
money from the clients outside.

For the inventory turnover, CK Assets has a lower rate (0.22) than Country Garden (0.59)
and PCPD (0.40), showing that they have a lower frequency to sell out and replace their
product in 2021. It can also perceive it as the clients prefer to purchase the assets from its
competitors.

Therefore, in terms of operational risk, the performance of CK Assets either for the assets
turnover or the inventory turnover, they are weaker than its competitors. It is probably the
risk for them to operate their business long-term in the field of property development.

S&P Capital IQ. (2021). CK Asset Holdings Limited.: Public company profile.
Retrieved April 27, 2019, from S&P Capital IQ database.

S&P Capital IQ. (2021). Country Garden Holdings Company Limited.: Public
company profile. Retrieved April 27, 2022, from S&P Capital IQ database.

S&P Capital IQ. (2021). Pacific Century Premium Developments Limited.: Public
company profile. Retrieved April 27, 2022, from S&P Capital IQ database.

Yahoo! (2022, April 27). CK Asset Holdings Limited ([Link]) stock major holders.
Yahoo! Finance. Retrieved April 27, 2022, from
[Link]
2021 Annual Report. CK ASSET HOLDINGS LIMITED. (2021). Retrieved April 27,
2022, from [Link]