May 7, 2020 / 2:09 AM / 24 days ago

CK Infrastructure, Power Assets expect reduction in first-half profit on UK re-measured tax rate

HONG KONG (Reuters) - CK Infrastructure Holdings (1083.HK) and unit Power Assets Holdings (0006.HK) said the firms expect a material reduction in their first-half net profit compared to a year ago, due to the re-measurement of the deferred tax balances in the U.K.

The companies, said in separate filings on Wednesday that there will a one-off impact of HK$1.4 billion ($180.61 million)and HK$800 million, respectively, had the U.K corporation tax rate remained at 19%, instead of reducing to 17% from 1 April as previously enacted.

Both firms are subsidiaries of CK Hutchison (0001.HK) which was founded by retired billionaire Li Ka-shing.

The parent company, which holds around 72% in CK Infrastructure, said it does not expect a material impact on its financial results however, because the charge is expected to be substantially offset by one-off deferred net tax gain of a similar amount arising from its other operations in the U.K.

CK Infrastructure and Power Assets opened 2.7% and 1.5% lower on Thursday.

Reporting by Clare Jim; Editing by Shri Navaratnam

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