CEO Message
MD Message (02/2017) 107
  • 友善列印版本

    02/2017

    Dear Colleagues,

     

    The New Year heralds new beginnings. I would like to take this opportunity to wish you all good health and prosperity, and that our work together will be smooth and fruitful.

     

    We announced our 2016 annual results late last month. The results were robust against a challenging operating environment. 2016 has been a busy and yet fruitful year in which we reached a number of targets and overcame various challenges. Over the past year, we have been fearless in the face of trials and have seized every opportunity to strengthen our competitive edge. I would like to thank all of you for your relentless efforts.

     

    How time flies! I can still recall when I attended my first annual staff briefing six years ago. I needed to explain about our performance during the year but I had only been in place for a few months and was still getting to know the operations and the business. At that time, I set out seven work priorities to progressively make the Company into a highly admired commercial property developer in mainland China. Today, six years on, I would like to share how far we have come and what remains for us to achieve.

     

    The first priority I set out was for our construction projects: that they needed to be on time and on budget without compromising our insistence on quality. To date, we have completed all the projects set out in our 2010 plan. We have also reviewed and rectified shortcomings in some of our earlier projects. Our Projects Department is much stronger today, and we have set up the Cost and Controls Department to monitor the progress of construction works and contract management. I am happy to see that we now have a well-established system in place for our projects in terms of quality and control. However, we should not rest on our laurels; in addition to maintaining our reputation for excellence in design and quality of construction, we need to continue to focus on enhancing our project management capacities.

     

    The second priority I highlighted was the need to develop new projects, which we have done on a grand scale with our entry into mainland China. We have acquired new land in Kunming and Wuhan, and we are progressing well with the construction at the two sites. We are also exploring new frontiers, for example, we are working on a hotel project in Shenyang and our second office tower in Wuxi. These new projects will give new momentum for future growth. We are also paying attention to market trends to find new room for us to grow.

     

    Strengthening our financial capabilities was the third priority. Sound financial resource management is the basis for future development. Over the past seven years, we have made huge investments but today our capital base remains strong and we have adequate funds to meet the demands of our projects and for ongoing investment. Testament to this can be seen in our readiness to seize opportunities to invest in our existing portfolio and in new projects, despite the market downturn.

     

    My fourth point was to maximize the value of our assets. We have been steadily strengthening our work in property management and leasing and have invested in our properties to further hone our competitive edge. The global economy remains weak and the retail industry has been sluggish over the past few years but, nonetheless, we have taken the opportunity to progress with our asset enhancement initiative (AEI). In Hong Kong, we have completed our Mongkok upgrade program and the AEI for Fashion Walk is close to completion.

     

    Next, we will begin with our upgrade works at The Peak Galleria. Plaza 66 in Shanghai has essentially completed its program of upgrades and Grand Gateway 66 will follow suit with work starting this year. The 2016 results have already shown the benefits of the AEI, and our efforts in this regard will continue to enhance our long-term competitiveness and profitability.

     

    The fifth point I raised was the need to strengthen Hang Lung's brand. Branding is not just about promotion and advertisement, it is deeply engrained in the little details from recruitment, financial management, and customer service, to property management, cleanliness, and hygiene standards, and even in the design of hoardings and landscaping. Everything touches on our branding. We have been more proactive and done much more than before. Over the past year, we have garnered awards in a number of areas, including corporate governance, sustainability, investor relations, marketing, design and construction, green building, human resources management, and customer services – the results have been a dazzling testimony to our brand values.

     

    In my sixth priority, I highlighted our people and the need to enhance our corporate culture. Our people are important assets and components of the Company's success. Over the past few years, we have been proactive in recruiting talent through various channels to build an excellent team. At the same time, we have put more emphasis on training and development for our staff. We have launched online and offline courses and workshops to help our colleagues excel in their field. I hope all our colleagues can pay more attention to the finer details, be creative, seek to continuously improve themselves, and participate in the strengthening of our corporate culture. In addition to paying attention to one's ability to work, we also place great emphasis on integrity. This is ingrained in our corporate culture and is the cornerstone of our success. We insist that every colleague must keep this principle close to their hearts and put integrity first.

     

    My final priority was the enhancement of structures and systems. As the company expanded its operations over the past six or so years, we have also seen a doubling of our employee numbers, highlighting the need to reinforce the Company's management systems and the organizational structure. In response, we have strengthened all internal systems, created new departments, and enhanced our operational efficiency with better regulation and monitoring in all areas from recruitment, financial management, and crisis management, to information technology, external agreements, and marketing. In this way, the organization is synergized from the individual teams to the whole establishment.

     

    Each new year brings with it challenges and opportunities, the year ahead for us is no exception. As a top tier property developer, Hang Lung will constantly review its development strategy in both Hong Kong and mainland China. We now have a much stronger competitive advantage, a better team, a more renowned brand, and stronger systems and controls compared to six years ago. Hang Lung today is at its strongest and I believe we can go from strength to strength in the years to come. With our We Do It Right at the heart of all our actions, let's continue to work harder to achieve more rewarding results. Once again I thank you for all your efforts.

     

    Managing Director

    Philip Chen

     

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