Police have arrested a man on suspicion of drug trafficking and manufacturing.
Officers said they intercepted a 58-year-old man in To Kwa Wan on Friday and found 335 grams of crack cocaine in his possession.
Police then searched a residential unit nearby and seized 38.6 kilograms of drugs valued at more than HK$22 million.
They included cocaine, crack cocaine and ketamine.
Some liquid believed to be used for producing space oil drug and drug-manufacturing equipment were also confiscated.
The man is due to appear at Eastern Magistrates' Courts on Monday morning.
In a press briefing, senior inspector Fung Pak-kin of Hong Kong Island region anti-triad unit said he believed the police operation has shut down a drug-manufacturing centre housed in a private flat.
“We also want to remind citizens that they have to be careful when renting out a flat, and to avoid the premises to be used for any illegal activities,” he said.