Letter from Chairman

Dear Colleagues,

Let me start by paraphrasing a few lines from “Below the Lion Rock”, a song that we are all familiar with: “In the same place, far beyond, we hold hands and flatten the ruggedness. We, wrote with our arduous hard work that lay the timeless story of Hong Kong.” This song speaks to my heart as it signifies the spirit of this city and its people.

The sudden outbreak of COVID-19 took the world by surprise and dealt a heavy blow to the economy and livelihood of people. According to the forecast of the International Monetary Fund, the global economy this year will shrink by 4.9% as a result of the epidemic. Meanwhile, the economic woe is aggravated by an international scene where major powers are locking horns, fuelling uncertainty and volatility in the political and economic prospects of Hong Kong. Last year, Hong Kong reported its first economic contraction in a decade, while its first half-year GDP of 2020 recorded an approximately 9% decline, representing the worst half-year drop since record began in 1974. The Hong Kong Government is expecting negative economic growth this year, given difficult conditions in an international market overshadowed by the epidemic and the third wave of outbreak here at home. Sectors dependent on consumer spending and tourism, namely, retail, hotels and catering, are among the hardest-hit industries. The retail industry, for example, has recorded a nearly 35% decline for the first five months of the year. These are the industries closely associated with the Group’s businesses.

At a critical time like this, I am reminded of the meaning of my name “Che” (志), literally “aspirations and goals”. My parents named me as such because they would like to see their son aspiring to embrace challenges. In the same token, I am calling upon you to rise to the challenge with aspirations. Confronted by such difficult business conditions, we should stay healthy and continue to work with dedication to ensure efficient business operations. Going forward, we should also focus on how to drive economic recovery in the aftermath of the epidemic and ponder what we can do to build a peaceful and stable business environment for the long-term economic development of Hong Kong.

I have been deeply touched by our persistence in giving back to society even during such difficult times. Since the beginning of the year, K. Wah Group has devoted over HK$200 million through its four business divisions to support anti-epidemic measures in Mainland China, Hong Kong and Macau, benefiting a number of regions such as Hubei, Guangdong, Shanghai, Hong Kong and Macau. Our donations have been utilised to bolster public health initiatives and finance medical research in Mainland China, in the hope that the epidemic would be contained as soon as possible and effective medicines and vaccines would be developed. We have also sponsored the set up of a mask production cleanroom by Tung Wah Group of Hospitals, which is expected to supply medical masks to nonprofit organisations and the underprivileged. With the spirit of the K. Wah, voluntary teams have been formed by our staff in Mainland China, Hong Kong and Macau to source and deliver supplies to epidemic-inflicted areas for those in need. Hats off to our colleagues for their selfless dedication and charity!

K. Wah Group has witnessed and steered through countless difficulties for 65 years of its business development. With the aspiration to embrace challenges boosted by the positivity of our spirit, I have no doubt that we will steer through these hard times again!

Dr Lui Che-woo GBS, MBE, JP, LLD, DSSc, DBA,
Chairman and Founder of K. Wah Group