On May 24, 2024, Li Ka-chu, chairman of Cheung Kong and Hutchison (00001), attended the shareholders’ meeting via video conference. According to Ming Pao’s report, a shareholder raised a question about the decline in Hong Kong’s port ranking and whether the group would change the land use of the Kwai Chung container terminal. Li Ka-chu responded that the continuous decline in the ranking of Hong Kong’s container terminals is an undeniable fact. Whether to change the land use beyond the company’s decision-making scope should be left to the Hong Kong government to decide.
Facing the trend of Hong Kong residents traveling to the mainland for shopping, Li Ka-chu mentioned that the shift in consumption patterns in Hong Kong poses challenges for the company’s retail sector. They have adjusted their product mix, procuring more products from the mainland for supermarkets, making it unnecessary for residents to travel far. For example, the retail business of Watsons under the group has been implementing an O+O strategy, which has been effective. The customer base of O+O consumes more than three times that of physical stores.
Furthermore, he mentioned that Watsons had over 600 stores in Hong Kong years ago and now operates 16,800 stores at home and abroad. Without global development, there would be approximately 800 stores in Hong Kong at most, facing a saturated market. This indicates that business in Hong Kong and overseas can complement each other and provide mutual assistance.
Li Ka-chu also mentioned that the group’s business is global, with retail business in Europe and Asia experiencing growth surpassing pre-pandemic levels last year. Infrastructure business also recorded steady growth. The port business has diversified development and expanded into markets in Egypt, Saudi Arabia, Mexico, and Pakistan.