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Energy, Infrastructure, Investments and Others

Hutchison's investments in energy and infrastructure are mainly in Asia, Australia, North America and the United Kingdom.

In April 2004, Cheung Kong Infrastructure Holdings Limited (CKI) announced its first venture into water assets in the UK by acquiring Cambridge Water in South Cambridgeshire. Cambridge Water possesses an integrated distribution system that includes seven service reservoirs, 10 water towers and 2,200 kilometres of water mains, supplying a population of approximately 300,000 in an area that spans more than 453 square miles.

In June 2005, HWL, CKI and Power Assets Holdings Limited (Power Assets) (formerly Hongkong Electric Holdings Ltd) completed acquisition of Northern Gas Networks Limited that owns the North of England Gas Distribution Network (NEG) in the United Kingdom. NEG is one of the eight major gas distribution networks in the UK. Its network extends south from the Scottish border to South Yorkshire, containing a mixture of large cities (Newcastle, Middlesborough, Leeds and Bradford) and a significant rural area including North Yorkshire and Cumbria. It comprises approximately 37,000 kilometres of distribution gas mains, serving a total population of 6.7 million. In December 2007, CKI acquired a 4.75 per cent interest in Southern Water Group, a regulated water and sewage company in the UK. In May 2010, CKI and Power Assets acquired 50 per cent interests in Seabank Power Limited, which owns and operates a 1,140MW gas-fired combined cycle power plant near Bristol in the United Kingdom. In October 2010, CKI and Power Assets also acquired an 80 per cent interest in UK Power Networks Limited which provide nearly a quarter of the electricity in the United Kingdom and is one of the country’s largest electricity distributors.

In May 2006, Hutchison China MediTech Limited (Chi-Med), is a subsidiary of HWL. Chi-Med, the holding company of a pharmaceutical and healthcare group based primarily in Mainland China, is listed on the Alternative Investment Market of The London Stock Exchange Plc (stock code: HCM). Chi-Med focuses on researching, developing, manufacturing and selling pharmaceuticals and health oriented consumer products through three core operating divisions: 1) China Healthcare Division – three companies involved in the manufacture and distribution of prescription and over-the-counter drugs and infant nutritional products through its own network of over 2,600 sales people nationwide in China; 2) Drug R&D Division – one of China’s leading biotech companies with over 230 scientists and staff in Shanghai focused on developing cancer and autoimmune disease drugs for the global market, and 3) Consumer Products Division – two companies manufacturing and selling natural, organic, and botanical based food and personal care products primarily in Hong Kong and China.

Hutchison's finance and investment income is derived from a substantial pool of cash, managed funds and listed investments.

 
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