- 2018-10-29
Li Ka-shing plans to retire next year
Li Ka-shing, who will turn 89 in July, has been one of the world's richest billionaires for decades. According to informed sources, Li Ka-shing did not give a clear retirement date, but may leave before his 90th birthday.
A person familiar with the matter said that Li Ka-shing had informed his advisory team of the plan, including his son, Li Zeju, vice chairman of CK Hutchison (has been designated as Li Ka-shing’s overtime worker). Another person familiar with the matter pointed out that Li Ka-shing may retire before the end of this year.
Li Ka-shing, known as the "Asian Buffett", is a well-known entrepreneur at home and abroad, whose business covers ports, telecommunications, retail, and real estate. His departure may make CK Hutchison's shareholders uncertain about the company's future.
People familiar with the matter claim that Li Ka-shing plans to keep his office on the 70th floor of the company's headquarters and continue to serve as a senior consultant to CK Hutchison. This business tycoon, who left the mainland to live in Hong Kong as a child, built a plastic flower factory into a global business empire.
A spokesperson for CK Hutchison said on the 20th, “Li Ka-shing occasionally talks about his retirement and his confidence in Li Zeju’s leadership. Li Ka-shing is in good health and will make his own official announcement when he decides to retire.”
This high-level transition coincides with Li Ka-shing's companies in a challenging period. At present, domestic competitors are gradually devouring his port and real estate business in Hong Kong and the Mainland. In addition, regulators blocked Li Ka-shing’s bid for more than US$10 billion worth of British mobile phone operators and the Australian power grid. The political uncertainty in the UK also poses a threat to CK Hutchison’s book profits, because one-third of the company’s operating profits come from the UK.
According to data released by Forbes magazine, with a net worth rating of US$33 billion, Li Ka-shing has recently been competing with two mainland tycoons-Alibaba's Jack Ma and Wanda's Wang Jianlin-for the title of Asia's richest man.
As early as 2012, Li Zeju was appointed as the future leader of CK Hutchison. However, the succession timetable is always unknown. Li Zeju, 52, has been in the shadow of his father for more than 30 years. In the 1990s, Li Zeju’s younger brother Li Zekai left the family business to create his own business, but he used family funds to buy and operate loser media and telecommunications companies, and achieved corresponding success.
Joseph Fan, a professor of finance at the Chinese University of Hong Kong, pointed out, “It is common for the former chairman to choose to serve as a consultant or an honorary position before leaving his position completely in order to see how his successor will let go. "The professor believes that the existence of Li Ka-shing helps to ensure that the executives of CK Hutchison Co., Ltd. cooperate with Li Zeju's work.
In 2015, Li Ka-shing simplified the structure of its two companies and merged the two companies into one, aiming to increase investor interest and pave the way for Li Zeju's future takeover. Today, the market value of CK Hutchison Industries has reached more than 49 billion US dollars, surpassing the market value of Ford Motor Company.
A person familiar with the matter disclosed that since the reorganization, Li Zeju has been participating in all important investment plans and meetings, adding that Li Ka-shing will still be involved in decision-making.
The person familiar with the matter also said, "For'Superman (Li Ka-shing), it is not easy to completely separate himself. He will continue to steer CK Hutchison, but will give his son more opportunities to show off."
In the 1990s, when prices rose rapidly, Li Ka-shing saw business opportunities and began to purchase real estate through his own enterprise, Cheung Kong Holdings. He is a brave corporate "sniper" and an investor who can look at the right time. In 1979, Li Ka-shing bought Hutchison Whampoa for US$127 million. At that time, Hutchison Whampoa was the second largest firm in Hong Kong.
In 2011, the Hong Kong tycoon began to shrink his domestic real estate investment portfolio, and since then he has focused on new investments in Australia, Canada and the United Kingdom.
According to reports, in Hong Kong, the investment tycoon occasionally angered public sentiment. In 2013, container workers held a protest, holding a painted photo of Li Ka-shing, expressing dissatisfaction with the working environment in the port of the employer. Hong Kong citizens, who no longer have illusions about high housing prices, point the finger at Li Ka-shing. At the same time, some critics blame Li Ka-shing for the widening gap between the rich and the poor.
Two years ago, a plan to merge the Changjiang Hutchison Infrastructure and Power Company was opposed by shareholders. For Li Zeju, this failure was particularly disturbing. Colleagues revealed that Li Zeju has been following this plan closely.
Even at the end of his old age, Li Ka-shing is still famous for getting up at 5 o'clock in the morning to play golf at the golf course near his residence. Although his friends claim that his mind is still sharp, there are signs that his physical condition is not as good as before. Li Ka-shing’s long-term partner Zhou Kaixuan told reporters that two years ago, the investment tycoon injured his back during exercise and underwent spinal surgery in the United States. According to local media reports in Hong Kong, earlier this year, Li Zeju informed shareholders that Li Ka-shing would be absent from the annual shareholders meeting due to gastrointestinal illness.