Chu Kong Shipping Enterprises Group (CKS) anticipates its annual profit for the year ended December 31, 2025, will decrease by more than half. The company is expected to record an unaudited consolidated profit attributable to shareholders of between HK$41 million ($5.3 million) and HK$55 million.
This forecast represents a decrease of between 53 per cent and 65 per cent compared to the HK$117.03 million recorded in the corresponding period of the previous year. CKS reported that the anticipated downturn is primarily a result of geopolitical tensions affecting international trade.
The company attributed a decrease in its cargo transportation and handling volume to renewed trade tensions between the United States and China.
The group also expects to record a lower profit following the official opening of the Shenzhen-Zhongshan Link on June 30, 2024. This major infrastructure development negatively affected the performance of cross-border waterway passenger transportation of the group, it remarked.
Despite the projected decline in earnings, the group stated it maintains a healthy cash flow and financial position to meet its business needs. The board of directors noted that the current assessment is based on a preliminary review of unaudited management accounts for the year.
CKS noted that these financial figures have not yet been audited or reviewed by the auditors of the company. The company expects to issue its formal results announcement for the year ended December 31, 2025, at or before the end of March 2026.