On February 24, CKH HOLDINGS announced on its official website its opposition to the Panamanian government's forced takeover of the assets, employees, and operations of Panama Ports Company. The company was compelled to cease container terminal operations at the Balboa and Cristobal ports.

The announcement stated that on February 24, 2026, CKH HOLDINGS learned that on February 23, 2026, Panama time, the Republic of Panama forcibly entered the Balboa and Cristobal container terminals operated by its subsidiary, Panama Ports Company. The government seized administrative and operational control of both terminals and barred representatives of Panama Ports Company from entering the facilities.

This forcible seizure marks the culmination of a series of actions taken by the Panamanian government over the past year targeting Panama Ports Company and its concession contract. Within a short period on the morning of February 23, the Panamanian government gazette published both a ruling by the Supreme Court of Panama concerning Law No. 5 originally announced on January 29, 2026, and an executive decree issued by the President of Panama. The decree mandated the "occupation" of "all movable property" of Panama Ports Company with the participation of all relevant government agencies. Simultaneously, government representatives arrived uninvited at the two terminals, informing Panama Ports Company representatives that the concession rights no longer existed, that the company must terminate operations, and that its employees would be reassigned away from the company. Employees were instructed not to communicate with the company and to follow government orders under threat of criminal prosecution. The Panamanian government is now in control of both container terminals.

Based on the gazetted documents, officials' statements, and the government's forcible takeover, CKH HOLDINGS understands that the concession granting Panama Ports Company the right to operate the Balboa and Cristobal container terminals was forcibly terminated effective February 23, 2026.

These actions and directives from the Panamanian government have made it impossible for Panama Ports Company to continue operations. Consequently, the company was forced to terminate all operations at the Balboa and Cristobal container terminals effective February 23, 2026.

CKH HOLDINGS reiterates that the Supreme Court ruling, the presidential decree, the revocation of the concession, and the forcible seizure of the terminals are illegal. The government's actions also pose serious risks to the operation, health, and safety of the two container terminals. The Panamanian government did not notify or consult with Panama Ports Company regarding these actions beforehand. The Panamanian government must bear responsibility for all damages and losses resulting from its confiscatory actions.

Panama Ports Company and CKH HOLDINGS will continue to consult legal advisors regarding the ruling, the seizure, and the forced termination of the concession. They will explore all available avenues, including pursuing further domestic and international legal proceedings against the Republic of Panama, its agents, and any third parties complicit in these actions, and reserve all rights to seek redress from relevant parties.

On the morning of the 24th, the share price of CKH HOLDINGS declined sharply, falling nearly 2% by the midday break, with a total market capitalization of HKD 241.5 billion.

Previously, according to a February 19 report from Agence France-Presse cited by Reference News, CKH HOLDINGS stated it had requested negotiations with the Panamanian government on the 19th regarding the continued operation of the ports at both ends of the Panama Canal.

CKH HOLDINGS has managed the Cristobal port on the Atlantic side and the Balboa port on the Pacific side of the Panama Canal since 1997. This concession was extended for 25 years in 2021.

In January of this year, the Supreme Court of Panama ruled that CKH HOLDINGS' right to operate the ports at both ends of the canal was unconstitutional. Subsequently, Panama announced that Danish shipping giant Maersk would take over the operation of these ports. CKH HOLDINGS indicated it would pursue legal action in response.

On February 12, CKH HOLDINGS announced it had notified the Republic of Panama of the dispute under an investment protection treaty to safeguard its rights and interests. It invited the Republic of Panama to engage in consultations to actively seek a resolution regarding the actions taken by the government affecting CKH HOLDINGS and Panama Ports Company. Panama Ports Company is an indirectly held subsidiary of CKH HOLDINGS.

On February 4, Chinese Foreign Ministry spokesperson Lin Jian stated at a press briefing that China had responded to the Panamanian Supreme Court's ruling on the ports and that the Hong Kong Special Administrative Region government had also issued a statement. China will resolutely safeguard the legitimate rights and interests of Chinese enterprises.