Sun Hung Kai & Co. Announces 2025 Interim Results 

Attributable Net Profit Surges Over Tenfold to HK$887 million,

Driven by Strong Recovery in Investment Management

 

Sun Hung Kai & Co. Limited (Stock Code: 86.HK) (“SHK & Co.” or the “Company”, together with its subsidiaries, the “Group”) announces a significant improvement in its interim results for the six months ended 30 June 2025.

 

Financial Highlights 

	Six months ended			Year ended
(HK$ Million)	Jun 2025	Jun 2024	Change	Dec 2024
Total income	2,799.9	1,951.5	43.5%	4,262.3
Pre-tax profit	1,087.4	307.4	253.7%	861.3
Profit attributable to owners of the Company	887.0	75.4	1,076.4%	377.7
Basic earnings per share (HK cents)	45.3	3.9	1,061.5%	19.3
Interim dividend (HK cents)	12.0	12.0	-	14.0*
Book value per share (HK$)	11.2	10.7	4.7%	10.8
* Second interim dividend

 

In the first half of 2025, the Group reported a strong performance, driven by positive results across its core business segments of the alternative investment platform. The performance was highlighted by a significant turnaround in its Investment Management business, which saw enhanced returns across its diverse portfolio. The Group's Credit business delivered a resilient performance and remained a solid contributor, successfully navigating a challenging economic environment. Meanwhile, its Funds Management platform continued its strong growth trajectory, marked by a notable expansion in assets under management (“AUM”)^. These collective results underscore the success of the Group's strategic transformation, with its diversified platforms generating increasing synergies and enhancing long-term shareholder value.

 

The Group's pre-tax profit for the period was HK$1,087.4 million (1H2024: HK$307.4 million). Profit attributable to the owners of the Company rose more than tenfold to HK$887.0 million (1H2024: HK$75.4 million). This strong recovery was primarily driven by the Investment Management business, which capitalised on increased exit opportunities and robust valuation gains amid more favourable market sentiment towards China-related assets. Basic earnings per share was HK45.3 cents (1H2024: HK3.9 cents).

 

The Board of Directors (the “Board” or the “Directors”) of the Company declared an interim dividend of HK12 cents per share for the six months ended 30 June 2025, unchanged from the same period last year.

 

During the period, the Company repurchased medium-term notes (“MTN”) totalling US$12.4 million (1H2024: US$27.8 million). Including a decrease in total bank and other borrowings, net gearing ratio was further reduced to 29.6% from 31.2% at the end of 2024. As of 30 June 2025, the Group’s book value per share was HK$11.2, an increase of 3.7% and 4.7% from the end of 2024 (HK$10.8) and 30 June 2024 (HK$10.7) respectively. 

 

Segment Performance 

 

	Pre-tax contribution for the six-months ended			Segment assets as at
(HK$ million)	Jun 2025	Jun 2024	Change	Jun 2025	Dec 2024
CREDIT BUSINESS
Consumer Finance	374.6	400.3	-6.4%	17,468.8	17,761.5
Mortgage Loans	9.5	25.0	-62.0%	1,734.6	2,155.6
Sub-total	384.1	425.3	-9.7%	19,203.4	19,917.1
INVESTMENT MANAGEMENT#	785.6	(147.5)	N/A	16,182.0	14,914.2
FUNDS MANAGEMENT	(5.0)	1.3	N/A	22.3	59.6
GMS#	(77.3)	28.3	N/A	2,246.2	2,409.2
Total	1,087.4	307.4	253.7%	37,653.9	37,300.1
# Re-represented for the first half of 2024 as we discontinued the cost of capital charging internally by GMS to Investment Management since 1 January 2025, and allocated finance cost between the two segments based on their respective average asset balance. The re-presentation also included the regrouping of gains or losses on foreign exchange hedging instruments to align with the corresponding investment assets’ classification.

 

 

Investment Management

The Investment Management business delivered an investment gain of HK$997.9 million, representing a 6.4% return on average assets for the period. Gains were recorded across nearly all asset classes, led by Private Equity, which contributed HK$582.9 million from valuation appreciation and successful liquidity events. During the period, two of the Group’s direct/co-investments - Jefferson Capital (NASDAQ: JCAP) and Saint Bella (2508.HK) - successfully listed in the US and Hong Kong respectively. The Corporate Holdings portfolio saw a strong rebound, generating gains of HK$303.5 million, driven by strategic positioning in China-related holdings, which benefited from improving investor sentiment. The Hedge Funds maintained its defensive posture amid ongoing market uncertainty and delivered a solid positive return. Special Situations and Structured Credit portfolios gained 4.5% supported by the ongoing recovery of a COVID-era co-investment in the travel sector, alongside robust interest income from debt investments.

 

 

Funds Management

The Funds Management segment delivered strong growth, with total assets under management (“AUM”) ^ reaching a record high of US$2,550 million as of 30 June 2025 (2024: US$2,018 million). This increase was driven by significant net cash inflows of US$434 million and market gains of US$155 million collectively recorded by our Fund Partnerships and FOS & SHKCP Funds. The growth reflects increasing market recognition of the platform, evidenced by the shift in AUM composition, as our balance sheet capital decreased to 15.0% (2024: 20.1%), while external investor capital rising to 85.0% (2024: 79.9%).

 

Notably, one of our Fund Partnerships, ActusRayPartners, which employs an equity market neutral strategy across Europe, Asia and Japan, grew its AUM to over US$1.7 billion. SHK Latitude Alpha Fund, the global Fund of Hedge Funds strategy managed by our in-house team, also recorded solid growth. Both ActusRayPartners and SHK Latitude Alpha Fund were shortlisted and have progressed to the final round of nominations for the HFM APAC Performance Awards 2025, in recognition of their exceptional absolute returns and Sharpe ratios. We also completed a similar growth capital investment into Wentworth Capital, to fund their new debt investment vertical.

 

SHK & Co.’s Family Office Solutions (“FOS”), the multi-family office platform which provides unique access to alternative investments for family offices and ultra-high-net-worth individuals, continued to expand its client base and AUM during the period. FOS enables our clients to diversify their portfolios through institutional-quality investments while pursuing attractive risk-adjusted returns. The platform's growth reflects the growing demand for sophisticated wealth management solutions in the current market environment and the success of our investment teams at picking good opportunities.

 

Strategic Partnerships

During the period, SHK & Co. formed a strategic partnership with Mubadala Capital, the asset management arm of Mubadala Investment Company. This partnership combines Mubadala's global private markets expertise with our deep-rooted Greater China presence, creating a powerful platform for client access to premium sovereign wealth fund and co-investment opportunities. Our partnership with GAM Investments is making steady progress alongside their ongoing strategic transformation and enhancement of investment capabilities. We advanced the partnership to provide access to GAM 's established European distribution network for our fund products, opening new avenues for growth, including developing synergies with our in-house GPs.

 

Credit Business

The Credit business delivered a pre-tax profit of HK$384.1 million. On its consumer finance side, our new credit card business, SIM Credit Card, reached HK$2.4 billion in cumulative transaction volume since its launch, growing over 60% year-on-year during the period. Mortgage Loans business, SHK Credit, adopted a cautious approach to originating new loans amid a declining property market. Since opening our end-to-end mortgage platform to manage institutionally owned portfolios last year, SHK Credit was appointed as the servicer for a US$100 million residential mortgage portfolio in November 2024. In June of this year, SHK Credit was appointed again as the servicer of another US$70 million residential mortgage. The portfolios were acquired by SHK & Co. in partnership with institutional capital, from the developers who intend to divest balance sheet-funded mortgage portfolios and outsource administration and servicing to trusted third-party providers.

 

Mr. Seng Huang LEE, the Group Executive Chairman, said, “Looking ahead to the second half of 2025, we anticipate a challenging environment marked by global uncertainties and geopolitical tensions. These factors will continue to impact asset values and the overall macroeconomic landscape.

 

Despite these headwinds, we remain cautiously optimistic. Our focus remains squarely on capital efficiency, disciplined risk management and operational agility, which are the cornerstones of our resilience. Maintaining a strong balance sheet and ample liquidity remained key priorities, positioning us to invest during any market turbulence and capitalise on opportunities. Having completed the strategic transformation, our diversified and complementary alternative investment platform is increasingly creating synergies, driving recurring revenue growth, and enhancing long-term shareholder value.”

 

For more details of the 2025 interim earnings, please refer to the official announcement.

 

^  “AUM” refers to the total value of assets managed, advised, distributed or otherwise serviced, including: 

1. Assets under management by SHKCP’s Fund Partnerships, which are mainly established with early-stage alternative managers in flexible collaboration models depending on their go-to-market readiness; 

2. Assets under management by SHKCP, including funds managed by SHKCP and Family Office Solutions, and assets under advisory and/or dealing arrangement by SHKCP; 

3. Ownership-adjusted Assets under management by its strategic alliances, in which SHK & Co. has equity stakes; and 

4. Assets under distribution by SHKCP for third party managers. 

Its methodology for determining AUM reflects its different business lines and is based on its economic interests in the assets and/or the significance of its control. This differs from the methodology for calculating its AUM for regulatory filings. 

- End -

 

About Sun Hung Kai & Co.

Sun Hung Kai & Co. Limited (SEHK: 86) (“SHK & Co.” / the “Company”, together with its subsidiaries, the “Group”) is a leading Hong Kong-based financial institution recognised for its expertise in alternative investments and wealth management. Since 1969, the Company has built a diversified investment portfolio across public markets, credit and alternatives strategies including real estate and private equity, delivering long-term risk-adjusted returns.

Leveraging its deep-rooted Asian heritage, SHK & Co. supports and nurtures specialist emerging asset managers in the region, empowering them to excel. SHK & Co. also utilises its long-standing investment expertise and resources in providing tailored investment solutions to like-minded partners and ultra-high-net-worth investors through its Family Office Solutions. As at 30 June 2025, the Group held about HK$37.7 billion in total assets.

For more information about SHK & Co., please visit www.shkco.com / follow us on LinkedIn.

 

 

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