Hong Kong Business High Flyers 2021

HK$40

Annual

2021 HONG KONG BUSINESS ANNUAL 2020 HIGH-FLYERS

THE REGION’S ECONOMIC OUTLOOK FOR 2021 HOW HR LEADERS ARE ADAPTING TO THE NEW NORMAL WHAT CAUGHT OUR READERS’ ATTENTION THIS YEAR 14 OUTSTANDING HIGH FLYERS MAKE THEIR MARK

2020

HIGH FLYERS AWARDS

Contents Annual 2021

2021 OUTLOOK 4

Economic recovery or recession in 2021 hinges on border

reopening 6

Property market to slowly recover in 2021

8

Pandemic unveils new ways of working

10 Buyers seek immersive retail experiences 12 Hong Kong’s legal sector faces tougher competition from Chinese law firms

MOST READ IN 2020

14 Here's what caught Hong Kong Business readers'

06 10

attention in 2020

HIGH-FLYERS 2020 18

Quality design and materials to fuel long-term success

20 Through good and bad times — BOC Life is your life partner 24

The Shu K attraction

26

Working together to build better financial futures

28

Legacy of art, luxury, and beauty continues

30

Building healthy and long-lasting client relationships

32

Passionate pursuit of purposeful profit

34

The Lan Kwai Fong Group’s sixth sense for success

36

Mayer & Associes: ` A new identity in 2020

38

Extending the prime of your life

40

On providing creative solutions and building trust

42

Always striving for excellence

44

The Togher Group: Property investment yields that can earn the keys to the castle

46 Driving the Asian beauty boom through e-commerce

12

ANNUAL 2021

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ECONOMY OUTLOOK

More stimulus may be needed to keep businesses afloat as the challenging economic environment continues

Economic recovery or recession in 2021 hinges on border reopening Budget deficit makes up 11% of GDP, but more stimulus is still needed to keep businesses afloat.

H

ong Kong will continue to face challenges in 2021, with analysts’ economic expectations split between a possible recovery and a continuing recession, ultimately depending on how the COVID-19 situation develops as well as government response.

The city’s gross domestic product (GDP) could rebound as much as 4% in 2021, according to DBS economist Samuel Tse, provided the border reopens in Q1 as expected. Alicia Garcia-Herrero, chief economist for APAC at multinational financial services firm Natixis, forecasted the same growth but also noted that GDP could fall by as much as 6%.

Hong Kong’s mixed outlook is reflected in Financial Secretary Paul Chan’s statement on 3 January, where he echoed expectations for Hong Kong to face major challenges in the first half of the year whilst strong recovery momentum is expected in the second half of 2021.

4 HONG KONG BUSINESS ANNUAL 2021

Financial risks may arise as governments increase their expenditures in response to the pandemic

“We all hope that the economy can recover from the epidemic this year, but the reality is that there are still many risks hidden and we must remain vigilant,” Chan wrote in his official blog post where he also noted that uncertainties, such as the Sino-US relations and the geopolitical situation, would remain.

Chan also warned of financial risks that may arise, noting that many governments have significantly increased their expenditures in response to the pandemic, which has caused many economies to build high debts.

A study by professional accounting body CPA Australia gave a more pessimistic view. Its recent Hong Kong economic sentiment survey found that 75% of its respondents, or about three in four of accounting professionals, expect Hong Kong’s recession to continue until 2021.

In November 2020, professionals told CPA Australia that the global availability of a vaccine is the key to

whether Hong Kong’s economy will recover or recede in 2021.

“Global capital markets have reacted positively to news about the development of COVID-19 vaccines. This suggests that investors are increasingly confident that there could be a global economic recovery once a vaccine becomes available,” CPA Australia noted.

However, the bleak outlook amongst accountants indicates that the positive global sentiment has yet to reach the real economy and there is some way to go before business confidence turns positive, the accounting firm added.

Much of the economic recovery also depends on the recovery and growth of the global economy and Mainland China’s economy. The good news is that Mainland China has mostly reopened, and the world’s second largest economy is set to expand by 2.3% in the whole of 2020, says Fitch. It is the only major economy of the world to record

ECONOMY OUTLOOK a growth for the year. It is further expected to expand by 8% in 2021, according to Fitch, and even up to 9%, says Nomura.

However, should global economic growth remain weak, it will likely affect Hong Kong adversely.

Challenges may also arise from developments in the local political environment. DBS economist Tse has also observed this, stating that the rebound of asset prices and the economy will hinge crucially on the development of COVID and the relaxation of immigration policies.

More stimulus necessary Tse highlighted the ballooning unemployment in the city, noting in a report that should the COVID situation turn south and travel activities remain halted, the jobless rate will soar in the months ahead.

Hong Kong’s unemployment soared to its highest in 16 years, July-September at 6.4%, with more than 15,600 workers having lost their jobs during this period alone.

Furthermore, Secretary for Labour and Welfare Dr. Law Chi-kwong echoed gloomy prospects for the local job market, saying that it will likely remain under pressure in the near term with the overall economic situation remaining weak and the global pandemic still evolving.

Whilst news about COVID-19 vaccines in the tail-end of 2020 have revived consumer and investor sentiments, the possibility of reopening of Hong Kong’s borders sooner rather than later had a reality check when a surge in COVID-19 cases in late November and early December scrapped plans for a Hong Kong-Singapore travel bubble.

This, coupled with retail sales unlikely to see relief in the near term, makes it necessary for the government to introduce a new wave of stimulus packages in order to avoid the next wave of business closures, according to Tse. CPA Australia’s report also noted that many accounting professionals are bracing for lower revenue and a muted job market, signalling expectations that the business environment will remain in doldrums throughout the year. Almost half or 46% of respondents expect their company’s revenue to decrease, whilst

45% forecast a hiring freeze in 2021.

58%, also named cost reduction as their key strategic focus for the year.

Based on survey responses, CPA spokespersons Anthony Lau, Janssen Chan, Eden Wong, and Roy Lo recommended that the government extend and optimize the Employee Support Scheme to provide further time-limited financial support to employers to retain employees. They also suggested the introduction of a tax loss carry back for small and medium enterprises (SMEs) or businesses in the hard-hit sectors for the next two years.

Other suggestions include further enhancing Hong Kong’s position as a family office hub by implementing further measures and issuing more long-term bonds or perpetual bonds in international bond markets.

However, it may be hard for Hong Kong’s government to hand out more stimulus due to laws limiting further stimulus will require the government to issue government bonds, Tse said, as it challenges the mandate of “keeping the expenditure within the limits of revenues in drawing up its budget” stated in the Basic Law, the city’s mini-constitution.

Setting political obstacles aside, enlarging the scale of debt issuance will fuel the nominal interest rate, Tse noted. Coupled with the deteriorating credit rating of the city, this may lead to some upward pressure on government bond yield.

Another pressing matter in the long term is Hong Kong’s workforce problem. Natixis’ Garcia-Herrero noted that whilst economic activity will likely rebound in 2021 thanks to more activity coming from Mainland China and the rest of the world, the following year of 2022 will show a downward trend as the city ages and loses its talents.

Data from the Census & Statistic Department (C&SD) shows that growing ageing population and a subsequent shrinkage in its workforce headcount. In the latest labour market report released in September 2020, C&SD posits that the workforce will reach more than 3.64 million in 2024, then begin to steadily decline in the years to come—dropping to only 3.55 million by 2034, and to 3.2 million by 2054.

The impact of the COVID-19

The rebound of the economy will hinge on COVID and the relaxation of immigration policies

pandemic has led to the labour force to drop to 3.54 million in the first half of 2020, and the pandemic’s impact on the labour force market in the near term remains uncertain. The structural decline of the labour force resulting from the aging population will also increase the need of issuing sovereign bonds over the longer term, Tse said.

Recovery leaders, laggards The finance sector is expected to be the biggest contributor to Hong Kong’s economic growth in 2020, according to Natixis’ Garcia-Herrero.

“The financial sector in Hong Kong is a rare sector with limited drag from the COVID-19 and will continue to be a key source of economic growth in 2021. Abundant and cheap liquidity in the USD and the HKD will drive demand for loans and bond financing,” she said.

The presence of more Chinese firm listings will also mean more activities for equities, she added. Furthermore, the opening of Wealth Management Connect in the Greater Bay Area and the enhancement of REITs could also bring new opportunities.

Garcia-Herrero added that if the pandemic is brought under control, a cyclical rebound will definitely be a positive for the overall economic growth. However, the cross-border people movement may still be challenging given, dragging the speed of recovery.

The reopening of borders will help drive economic growth in 2021

HONG KONG BUSINESS ANNUAL 2021 5

PROPERTY OUTLOOK

Vacancy rates will continue to rise in 2021 at a slower pace

Property market to slowly recover in 2021 The gradual improvement is amidst major vaccine developments and easing of restrictions

I

n 2020, Hong Kong’s property market has been heavily affected as many businesses downsized their manpower, reduced costs, and implemented “work from home” arrangements amidst the COVID-19 pandemic.

According to Savills, local unemployment rose by over 130,000 people as petitions presented for bankruptcy and winding-up increased by more than 550 during the year, even with support from the government.

With this, multinational corporations (MNCs) have begun to cut down on their operations whilst working from home arrangements have been adopted mostly by overseas corporates. However, with developments of major vaccines making headlines and restrictions gradually easing, improvements might be visible in the property market scene within 2021.

Office rents’ lowest drop Savills’ data has seen overall Grade A rents crashing by 16.6% over 2020

6 HONG KONG BUSINESS ANNUAL 2021

Despite subdued leasing demand in the near term, gross leasing volume is expected to pick up in 2021

as a whole, marking the largest yearly decline since 2009.

The Wanchai/Causeway Bay submarket posted the largest decrease over the year with a 22% fall, followed by Central (-18.9%) and Island East (-15.3%).

Moreover, overall Grade A office vacancy rose from 4.7% at the end of 2019 to 8.4% in the last month of 2020. “Vacancy rates remain stubbornly high and are expected to rise into this year as corporate woes persist,” according to Savills senior director for research Simon Smith.

Meanwhile, JLL Hong Kong data shows leasing demand remains subdued with the net absorption reaching -2.5 million sqft. this year, amongst the highest withdrawal in the office market ever recorded.

Head of markets Alex Barnes mentioned that despite subdued leasing demand in the near term, gross leasing volume is expected to pick up in 2021 as tenants start making longer term real estate decisions this year.

“The vacancy rates will continue

to rise in 2021, albeit at a slower pace. The rental fall would be less significant next year compared with 2020,” Barnes said.

Both Savills and JLL expect overall office rents to still fall by 5% to 10% in 2021.

“Vaccine and travel dependent, we could see a period of rental stability over the second half before supply challenges in 2022 again put landlords on the back foot,” the Savills report stated.

“Lower rents can increase the city’s competitiveness, potentially positioning Hong Kong as a more attractive location to conduct business,” Barnes added.

Pressure on residential market prices to ease Global quantitative easing to the COVID-19 pandemic has relieved the pressure on residential prices caused by a soft economy.

JLL notes that combined with the support of strong pent-up demand and the low level of new housing supply, capital values of mass

PROPERTY OUTLOOK residential dropped only 1% in 2020.

However, capital values of luxury residential dropped 8.2% due to the weak investment sentiment.

“The low interest rate will continue to support housing demand next year. But the market activity will remain closely tied to the broader economy and unemployment trend,” JLL chairman Joseph Tsang said.

“Although market activity is expected to pick up mildly if the Hong Kong-China border reopens, transaction volume will remain much lower than historic levels in times of high economic uncertainties,” he added.

Tsang expects the capital values of mass residential to drop by up to 5%, whilst capital values of luxury residential will drop from 5% to 10% in 2021.

JLL’s report also stated that developers are more cautious about luxury residential development in view of poor investment sentiment.

Meanwhile, Savills noted that as corporates have cut salaries and housing allowances, tenants have had every incentive to negotiate rental terms and landlords have generally been willing to accept cuts rather than face the risk of prolonged vacancy of their properties.

Luxury apartment rents fell by 11.5% YoY, whilst serviced apartment rents decreased by 12.5% over 2020.

Townhouse rents also dipped by 3.1% YoY in Q4 of 2020, with the sector experiencing rental declines for seven consecutive quarters.

Discovery Bay was Hong Kong’s worst hit rental market, with apartment rents down by 15.4% YoY over 2020 amidst woes of the airline industry in the region.

Savills noted that the overall market was “fairly flat” in Q4 2020, in terms of both rents and volumes, and is most likely to remain so until borders reopen.

Their report stated that all districts on Hong Kong Island recorded larger rental decreases in Q4 compared with the previous quarter, with Southside/Shouson Hill registering the largest rental decline by 4.2%, followed by The Peak with a 3.8% fall and Happy Valley/Jardine’s Lookout which slid 3.5%.

Savills added that with no new

arrivals, operators are offering rental reductions of 10% to 20% on longer leases and free upgrades to larger units. Most turnover in the sector is from the existing tenant base.

“The market remains locked up with few new arrivals and a trickle of leavers, a situation likely to persist into the first quarter of this year,” Smith said.

Both luxury residential rents and townhouse rents are expected to continue to slip in the first half of 2021, whilst rents could stabilise over the second half, depending on the situation of the COVID-19 vaccine and travel.

Retail rents expected to bottom out before rebounding According to Savills, retail rents are likely to bottom out in the first half of 2021. Retail sales were down by 27% year over year from January to October 2020.

It forecasts that rents will continue to drop by 2% to 5% in 2021 before a rebound of 5% to 10% in 2022.

Meanwhile, food and beverage (F&B) continues to take up space as landlords are keen to sign up crowd-pulling concepts, often local, to support footfall in major malls.

Activity levels, meanwhile, are very low beyond F&B and the market remains frozen with only a handful of deals done in Q4.

There has also been a noticeable rise in the number of short-term tenancies, which usually include sellers of masks, red packets, groceries and frozen meats, as key shopping districts and most malls are facing sharply higher vacancies.

Landlords are already opening their doors to local restaurants, but some of their attempts to break down larger shops into smaller units are met with little interest.

Shopping centre landlords are now reconciled to market conditions and becoming more flexible in both asking rents and lease terms.

Moreover, both prime street shop rents as well as base rents of major shopping centres dropped by 5.9% QoQ in Q4 2020 amidst a “sluggish leasing market”.

“While rents may continue to slip over the first half of this year, we can see some activity returning after the Chinese New Year with a market

Simon Smith

Oliver Tong

Joseph Tsan

Alex Barnes

turnaround most likely in 2022,” added Smith.

JLL also noted that the city’s inbound tourism continued to completely stall as visitor arrivals dropped by 92.2% YoY in the first 10 months of 2020. Rents of High Street Shops plunged 36.8% so far, whilst rents of Prime Shopping Centres slumped 31.6%.

F&B operators and mass-market retailers targeting the local market are still keen on expansion, given agreeable rental levels.

However, tourist-driven retailers plans to continue consolidating their stores in core shopping districts for cost-saving.

Head of retail Oliver Tong described the permanent effects of COVID-19 in the shopping experience of people.

“Combined with the impact from the pandemic, the narrowing price gap between Hong Kong and China on luxury goods is likely to accelerate the structural change of tourist spending profile,” he said.

The retail market will heavily rely on local consumption in the short run,” Tong added.

The report also states that High Street Shops and Prime Shopping Centres are expected to rebound by up to 5% in 2021. This is on the back of a modest economic recovery and potentially some travel bubbles to be effected in Hong Kong.

Grade A Office Vacancy Rates by District

Source: : Savills Research & Consultancy

HONG KONG BUSINESS ANNUAL 2021 7

HIRING AND SALARY OUTLOOK

Growth in some sectors will create new opportunities for Hong Kong professionals

Pandemic unveils new ways of working Labour markets are set to slowly move back to pre-pandemic levels of hiring in 2021

U

ncertainty has plagued many sectors amidst the COVID-19 pandemic, and the human resources (HR) sector was not spared as well.

Consolidations across departments and functions are already underway in many companies, along with foreign financial institutions exiting local markets to refocus on their home countries, said Randstad managing director for search and selection in Greater China Natellie Sun. These events have resulted in redundancies, added Sun, and the unemployment rate of experienced workers may increase in Q1 2021.

On the other hand, hiring speed, loss for the need of replacements, and a slow creation of vacancies will also potentially create a long unemployment spell for those experienced workers seeking work.

On the brighter side of things, some regulatory bodies,particularly in the financial services sector, are subsidising financial institutions to create programmes for

8 HONG KONG BUSINESS ANNUAL 2021

The pandemic highlighted the need for business leaders to address worklife balance more seriously

fresh graduates to reduce the unemployment rate in the first half of 2021, added Sun. “Companies are more prepared to deal with how COVID-19 would impact their business operations after being hit by three consecutive waves in Hong Kong,” commented Hays Hong Kong regional director Jack Leung, noting that the success of community measures implemented in managing the pandemic situation has instilled confidence in majority of the workforce to return to offices. Business and consumer confidence has also grown in all areas since Q4, which, according to Leung, was a “positive indication” of what to expect in 2021.

Agile businesses that have been able to adapt to the digital shift were observed to emerge stronger. “Their early investments in technology, such as Software-as-a-Service (SaaS) solutions, data analytics and cloud, have positioned them well for growth and recovery amidst the pandemic, opening up new opportunities to spearhead Hong Kong’s digital transformation,” he added.

Interestingly, the Hong Kong stock exchange raised $91.47b (US$11.8b) from 52 IPOs, up 23% YoY, despite the 19% decline of deals in H1.

“The growth focus in the technology sector will create new business opportunities, not just for the financial services industry, but also e-commerce (retail), life sciences, manufacturing and supply chain in Hong Kong and the Greater Bay Area,” Leung added.

Concurrently, there has also been a pressure to reopen borders as to reignite the aviation, hospitality, and aviation industries. Promising developments in vaccines as well as effective COVID-19 treatments would help build business confidence in these hard-hit sectors, and hopefully let them resume operations next year, said Leung.

In 2020, there has been a strong emphasis on jobs in the technology and healthcare sectors, as well as heightened activity in the private equity and venture capital circles.

These trends are expected to continue in 2021, and a post-COVID recovery

HIRING AND SALARY OUTLOOK should also see positive activity return in many of Hong Kong’s other vital service and consumer sectors, said Mark Tibbatts, Michael Page’s managing director for the Hong Kong and Taiwan markets.

Select sectors see sustained growth—whilst industries like retail and real estate continue to be impacted by market factors, others like e-commerce, education, fintech, and virtual banking are seeing sustained growth, said Leung. “There has also been significant growth within the insurance sector, considering the current crisis is primarily health related; demand for support functions like claims, legal and compliance has increased, alongside business transformation roles as insurance companies continue to digitise their operations and processes,” he added.

In addition, as more and more companies invest in technology to make the digital jump, talent demand would lean towards more highly skilled technicians and digitally adept professionals, said Sun, noting that those well-versed particularly in transformation project management, change management, software development, cloud computing, and UX/UI, would be highly sought after.

Natellie Sun

Jack Leung

Mark Tibbatts

Retaining and attracting talents The COVID-19 pandemic has given rise to a new way of work and has raised employees’ expectations of their employers to offer flexible work options in the future, even after COVID-19, according to Sun. In a way, the global health crisis has highlighted the need for business leaders to address work-life balance more seriously.

More talents would like to pursue roles with supportive

As a 100% remote working model could never replicate the energy of a dynamic office environment, a hybrid model where employees can choose or are assigned days of the week to return to the office could possibly work. “It can also help drive efficiency, as employees can have meetings on the days that they are in the office, and focus on delivering the actual work when they are at home,” added Sun. Aside from flexible working options, there were more conditions employers should address in order to retain or attract new talent in the following year.

The ongoing crisis may have led professionals to evaluate potential employers in different ways and perspectives than before.

“This includes evaluating which organisations truly believe in the ethical treatment of their employees and sustainable environmental practices, and which don’t,” said Leung, noting that this could be further influenced by the growing desire in the general population to make a positive difference to the world around them.

“Naturally, the situation could be very different from one person to the next. But we can expect the post-pandemic recovery to be characterised by a rise in professionals wanting to work for purpose-led organisations that live their values in an inclusive way, internally and externally, enabling them to find more meaning in their roles,” he added.

In addition, there would be demand for balance and flexibility.

“Many people are hoping that this period will be a ‘reset’ moment that will be followed by more flexibility and balance in their professional lives,” commented Leung, noting that more talents would likely pursue flexible or permanent roles with supportive employers who actively encourage their workers to maintain a healthy work-life balance and place a strong emphasis on wellbeing.

Meanwhile, “the influx of redundancies and furloughing in the wake of the pandemic has led many professionals to recognise the importance of adaptability and lifelong learning,” added Leung.

This growth mindset would lead these professionals to seek out employers that offer them the tools and autonomy for continuous learning and development.

Staff recognition would also be beneficial, said Leung.

In 2020, most organisations have taken the opportunity to be much more human and caring in their approach to their people, according to Tibbatts. “We’ve seen greater investment in employee assistance programmes, mental health and wellbeing support, along with greatly enhanced digital and technology platforms to power business connectivity and continuity to unprecedented levels,” he added.

The ‘new normal’ of employment Tibbatts noted that it would be “extremely difficult” to foresee what employment trends there would be in 2021, as long as there were no concrete developments in controlling the virus.

“I certainly don’t see any seismic changes in the employment landscape from [the] current until there is a widely distributed vaccine, but I’m optimistic that once there is a vaccine and a return to relative normality we should see employment trends recover quite strongly,” he added.

A solid medical solution would enable us all to “return to more joyful times,” remarked Tibbatts.

The pandemic has absolutely accelerated the pace of change within many organisations and the whole conversation about the future of work has taken centre stage as a result. Digital transformation, diversity and inclusion, as well as workplace flexibility, have been the dominant talking points and would continue to be.

More specifically, “whilst many organisations in Hong Kong have seen accelerated digital transformation in the light of the pandemic, that the vast majority of working professionals believe their organisation’s digitalisation journey is very important to them, means that ongoing digitalisation will be a vital part of any organisation looking to stay relevant in the times to come,” said Leung.

HONG KONG BUSINESS ANNUAL 2021 9

RETAIL OUTLOOK

Retailers are investing in a mix of physical stores and e-commerce channels

Buyers seek immersive retail experiences The convergence of online and offline selling is set to further accelerate in 2021

W

ith the COVID-19 pandemic impacting most businesses, many retailers struggle to stay afloat. The Census and Statistics Department data show the provisional estimate of total retail sales in Hong Kong has decreased by 28.3% in volume for the first 10 months of 2020 compared with the same period in 2019.

Research from Euromonitor International also revealed that the COVID-19 pandemic will cause a 3.5% decline, which will amount to $3.88t (US$500b), in global retail sales for 2020.

However, Hong Kong’s retail market has already been struggling even before this year as growing social unrest brought by extradition bill protests resulted in disruptions in retail businesses.

These events have caused many retailers to think quickly on their feet and adapt to the rapidly changing retail market by maximizing the online channels.

Mainstreaming online retail trends This year, retailers have seen the

10 HONG KONG BUSINESS ANNUAL 2021

Lawrence Wan

Emily Leung

emergence of online trends such as livestream shopping and online shopping festivals. CBRE Hong Kong senior director Lawrence Wan said that as this occurs, retailers will also face a key challenge amidst fundamental changes in consumer behaviour. “Retailers are adapting to the change by diversifying retail strategies and investing in a good mix of brick and mortar stores and e-commerce channels,” he noted.

Wan also mentioned that with the festive season approaching, customer sentiments have been improving in Q4 compared to the previous three quarters. With this improvement, together with major COVID-19 vaccine developments and gradual lifting of travel restrictions, he affirms 2021 will be more positive for Hong Kong.

Meanwhile, IGD senior Asia retail analyst Charles Chan noted that whilst 2020 has seen exponential growth in online grocery and surge in sales for supermarkets, this will change in 2021.

“Growth for these channels will lessen slightly in 2021, with

consumers moving past the initial shock and lifestyle changes that affect how and where they work and shop,” Chan said.

Hong Kong’s grocery retail market has seen strong growth this year, despite more consumers staying at home for meals. IGD forecasts the grocery retail market to grow at an annual growth rate of 2% to 2022, with supermarkets accounting for more than 50% of the market.

Chan mentioned that delivery platforms such as foodpanda and Deliveroo have formed new partnerships with retailers and have expanded their delivery coverage to provide convenient access to grocery for more shoppers.

Integrating e-commerce The challenges brought by the pandemic has pushed many businesses to digitise operations and this has prompted more retailers to shift transactions online.

E-commerce has also become more prominent and has challenged retailers to continue engaging and attracting customers.

RETAIL OUTLOOK For Euromonitor senior analyst Emily Leung, the Hong Kong e-commerce market is expected to increase by 27% this year. This growth is expected to continue until 2025 with a compounded annual growth rate of 10%.

“What COVID-19 has done to Hong Kong is really force people to actually go online to shop because in Hong Kong, the e-commerce market was relatively low before COVID-19.

Now because of COVID-19, we’re seeing a lot of people change their shopping behaviors, transforming from shopping offline to online,” according to Leung.

However, the emergence of e-commerce and online transactions also raises questions on the necessity of physical stores.

According to a Euromonitor research, 46% of connected consumers said their motivation for shopping in physical stores is to see and try the product before buying, with apparel accessories and beauty personal care products being the two most popular categories for inperson purchases.

Leung mentioned that retail stores are still going to be important for a lot of customers to actually connect and know about the brands. Retailers have to strategize so as to help consumers move digitally with the brands.

“If you are talking about what retailers are doing to ensure customers adapt to technology, to lead them on to online from offline, a lot of education is done in store.

This is why I think there’s still a need for physical stores,” she said.

The changing consumer behaviors The rapidly changing retail environment has significantly impacted consumer sentiment.

Whilst the COVID-19 accelerated digital growth for retailers, they now have to face bigger expectations from consumers and adapt faster to meet those.

KPMG head of consumer and retail for ASPAC Anson Bailey emphasises the importance of understanding consumer behaviours as a key for retailers to be able to respond quickly to the changing market. “Consumer

confidence is certainly down, and those brands need to focus on reassurance. They need to implement new initiatives that restore their consumer confidence,” he said.

“Consumer confidence is certainly down, and those brands need to focus on reassurance. They need to implement new initiatives that restore their consumer confidence,” he said.

Data from KPMG saw net trust in grocery and non-grocery retail drop to -2% and -5%, respectively from May to August, with more customers saying that they have less trust in the sector than before COVID-19.

The research shows retailers need to demonstrate that they are still taking personal safety seriously in order to rebuild consumer trust.

Amidst the emergence of online retail, consumers are seeking a more immersive shopping experience as they still long to shop offline. “In this new immersive shopping experience, they want to see new technologies and new innovations,” Bailey said.

He added that consumers are going to take more active interest in the origin of products and the manner of production.

“We’re going to see a lot more focus on more transparent supply chains. The consumers are now demanding, they are watching carefully what the brands are doing.

What are they doing to the planet?

How are they supporting the communities that you live in and work in?”

The ‘new normal’ in retail sector The Hong Kong retail sector is expected to slowly rebound in 2021. Wan noted that depending on border controls, anticipated recovery could be a rapid one, if not a V-shaped curve, once tourists return to Hong Kong.

Moreover, he added that the upcoming year is a good time for retailers to get better locations and leasing terms for a brick and mortar presence, whilst investing in e-commerce and marketing efforts.

“Apart from continuing to drive local promotion campaigns, retailers are advised to consider tapping opportunities of lower rent and more choices in prime locations,”

Anson Bailey

Charles Chan

according to Wan. Similarly, Chan said retailers should review their store estate to identify underperforming stores and adjust operations.

“Stores in commercial and tourist areas will need to provide additional reasons to visit,” he said. “Whilst stores located in residential areas should also be reconfigured to have a greater focus on grocery, with digital touchpoints added to meet the new expectations of shoppers.”

Meanwhile, Euromonitor’s Leung cited key factors that should be considered for retailers to recover in the new year. These include a strong offline-to-online strategy, being sustainable, and catering more to the domestic market.

“It’s going to be a long recovery process, and I think during this time is also a good opportunity for retailers to innovate,” she said.

The digital shift also introduces issues in loyalty for brands and retailers due to greater transparency in online pricing.

“The greater transparency of online pricing means that consumers have more opportunity to explore competing products. This is likely to lead to more switching, testing new brands, variants and pack sizes,” Chan said.

With the retail sector set for recovery next year, retailers ultimately need to demonstrate their purpose in order to respond to everchanging consumer requirements Their behaviours, highlighted by the demand for a more immersive shopping experience, call for companies to be more flexible and agile in doing business.

“If those retailers do nothing, they will be in big trouble because the world is moving on,“ Bailey said.

Changes in consumer shopping habits during the pandemic

Source: Consumers and the new reality, KPMG International

HONG KONG BUSINESS ANNUAL 2021 11

LEGAL OUTLOOK

With Chinese law firms gaining ground in the Hong Kong market, what does this spell for Hong Kong law firms?

Hong Kong’s legal sector faces tougher competition from Chinese law firms Mainland firms have been establishing themselves in the HK market over the past few years

T

he COVID-19 pandemic brought about a season of changes for every sector of the economy and the legal sector is no exception. As we enter a new year, several law firms in Hong Kong predict how the future will move forward in the legal industry.

In 2021, Hong Kong law firms will see a lot of competition from their Chinese counterparts, said Olga Yung, regional director of Michael Page Hong Kong.

“Many of them have become more sophisticated after entering the Hong Kong market in the past few years, the most recent firm being localised is Haiwen. Integrating into the Greater Bay Area development, these pilot measures allow Hong Kong legal practitioners to practice civil and commercial law in the nine mainland cities of the GBA, upon completing the examination and training course,” Yung said.

Hong Kong is the top place

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Law firms need to embrace technology to meet client demands and create a more efficient work environment

Chinese law firms have been setting up for their new overseas offices for the past two years, according to the data collected by China Business Law Journal from July 2018 to August 2020.

Some Chinese law firms have started gaining footing in the Hong Kong market by entering alliances with local law firms.

In December 2020, the Law Society of Hong Kong approved the association of independent Hong Kong law firm Yang Chan & Jamison LLP and Chinese law firm Shanghai Qin Li Law Firm.

The association of law firms is said to facilitate expansion of services to enterprises with businesses in Mainland China and Hong Kong, with a focus on the Greater Bay Area. This may not be surprising as managing partner of Baker McKenzie’s Hong Kong and Mainland China offices Steven Sieker said that China is set to lead the world in economic recovery.

“We anticipate an increase in investment activity and an associated increase in legal activity as businesses expand their footprint in Hong Kong as well as in the GBA,” Sieker added.

Flexible work measures continue The pandemic has left its mark indefinitely, so it’s not surprising that flexible work measures will continue in 2021.

“More work flexibility measures – work from home has proved to be both cost efficient and work effective at most law firms during the first three waves of COVID-19 in Hong Kong, and firms are expected to continue the work flexibility measures in 2021,” Yung said.

HFW’s Patric Yeung has agreed with this sentiment, saying that firms will be looking to maximise their efficiency with the resources and tools available to them.

“As the market for technology

LEGAL OUTLOOK Hong Kong has been the Number One choice for Chinese law firms in the past two years Olga Yung

Source: Robert Walters Salary Survey 2017 Source: China Business Law Journal

solutions is maturing, law firms also need to embrace technology advances in terms of improved service delivery, new products in order to meet client demands as well as create a more efficient work environment,” Yeung added.

Aside from the continued use of flexible work measures, Yung also said since 2020 saw a rise in headcount issues across financial institutions, there is a possibility of increase in hires for lawyers to move into hybrid legal and business roles where both the legal team and the business could have similar needs and therefore share resources.

Demands and drivers in 2021 Yung predicts that demand for legal services in the technology sector will increase, partially due to our proximity to Shenzhen, and because of new technology companies expanding in the Greater China region. The growing virtual banking and fintech markets also drive the demand for lawyers, both within the corporate commercial and disputes sides,” she added.

Yung also mentioned that because of the US-China trade war, there are tightened regulatory guidelines in place that will result in increased need across regulatory and compliance practice as regulatory lawyers are best equipped to advise on sanctions or regulatory issues.

“Across private practice, the equity capital market (ECM) continues to be active – as the US scrutinises its regulatory requirement on Chinese companies listed in the US, many Chinese companies are choosing Hong Kong stock exchange for

secondary listing and IPOs,” according to Yung.

HFW predicts that the demand for complex advice on cross border issues, both transactional and contentious, will continue to grow and increase in volume.

“Despite an unpredictable global economic outlook, the confidence in cross-border opportunities remains high. Global trade and development opportunities and issues will primarily drive this demand,” according to Yung.

Facing new challenges With the Chinese law firms eyeing the Hong Kong market, Yung said it will result in a downward pressure on pricing.

“In the competition market, foreign firms need to reinforce their capability to deal with complex across border matters with strong expertise of the Mainland market,” she added.

To avoid falling into a pure price competition, she suggested that foreign firms expand their offerings by collaborating with Chinese firms.

Aside from the threat of competition, Yung said technological advancement creates a growing demand for legal services. She emphasised that firms should prepare for development in the legal and regulatory framework as many adapt digital transformations.

Even before the pandemic, Hong Kong has indicated support for the development of an online dispute resolution and deal-making platform by an NGO called eBRAM which is an Internet-based online platform that facilitates the provision of onestop dispute resolution services.

In the wake of COVID-19, a lot of companies see the need for more flexibility but HFW’s Yeung emphasised that firms need to focus on flexibility that incorporates what the clients need.

There’s an increased focus on the client experience, from value-added services to tailored pricing models and more firms step up to boost their client services, he added.

Getting ready for the future To be ready for any changes and challenges in 2021, HFW said they keep their business model flexible and agile to better adapt and grow to meet future demands.

“For example, our global HFW LITIGATION team regularly handle high-value, complex, multi-party, multi-jurisdictional disputes; emerging from the pandemic, HFW is introducing an initiative on Sustainability, our objective is to become a leader among law firms, drawing on our very talented and dedicated people,” Yeung said.

The pandemic is the biggest challenge 2020 has faced but despite that, Baker McKenzie’s Sieker sees improvement in both the pandemic and geopolitical outlook in the year ahead and a resulting improvement in business sentiment. Deal activities are likely to remain busy, particularly in the financial services, technology, healthcare and real estate sectors, as companies continue with their strategic investments and capital raising activities, which in part are fueled by various policy measures and initiatives that start to take effect, he added.

Demand for legal services in the technology sector will increase

HONG KONG BUSINESS ANNUAL 2021 13

TOP NEWS IN 2020

MOST READ

Daily news: www.hongkongbusiness.hk

Greater Bay Area regulators float wealth management connect scheme The Hong Kong Monetary Authority (HKMA), the People’s Bank of China, and the Monetary Authority of Macao plan to implement a cross-boundary wealth management connect pilot scheme in the Greater Bay Area as a means to facilitate cross-boundary investments by individuals in the area.

Nearly 3 in 5 firms fear virus crisis could spur restructuring Fifty-eight percent of Hong Kong’s companies are concerned that their employment may be vulnerable to possible business restructuring, according to Randstad Hong Kong. Only 42% of respondents said that they are “not too concerned” that COVID-19 will result in a company restructuring, whilst 7% are “extremely concerned.”

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Hong Kong’s permanent residents to get $10,000 each Hong Kong permanent residents aged 18 and above will receive $10,000 each from the Hong Kong government, financial secretary Paul Chan said in his budget speech. This would equate to an expenditure of about $71b, according to Chan, and is expected to benefit about seven million people.

The government hopes that the cash incentive will encourage and boost local consumption as well as relieve people’s financial burden.

Hong Kong runs fiscal deficit for first time in 15 years Hong Kong recorded a deficit of $37.8b for 2019-20 or about 1.3% of the city’s gross domestic product (GDP), finance secretary Paul Chan revealed in his budget speech. This is the first time that Hong Kong ran a fiscal deficit in 15 years.

Chan said that the trade tensions, coupled with the protests that started last June, significantly dampened economic momentum. In the past months the government announced measures that cost about $30b to help boost the economy amidst these times—which, in turn, drove the city to a fiscal deficit.

HSBC resumes plan to axe 35,000 jobs: report HSBC is resuming a redundancy plan that will see over 35,000 employees lose their jobs over the medium term, a memo seen

by Reuters showed.

The bank will also maintain a freeze on almost all external recruitment, Chief Executive Noel Quinn said in the memo sent to the bank’s 235,000 staff worldwide.

Cathay Pacific floats $39b bailout plan Cathay Pacific has proposed to implement a recapitalisation plan to raise aggregate proceeds of around $39b, which involves preference shares and warrants issue, a rights issue and a bridge loan, an HKEX filing revealed.

Cathay Pacific’s CFO Martin Murray stated in an analyst briefing that they aim to repay the Hong Kong government in a three- to five-year period.

The aggregate subscription price of the shares is at $19.5b, whilst the warrants to subscribe for shares has an aggregate exercise price of about $1.95b.

Nan Fung Group to turn Kai Tak site into commercial area for $32b Hong Kong conglomerate Nan Fung Group has announced a plan to build AIRSIDE, a 1.9-million-sqft mixed-use commercial development in Kai Tak area, a press release confirmed. The total investment of this project is expected to reach $32b and is set to open in Q4 2022.

Hong Kong landlords foray into the co-working space sector as operators Over the past decade, there has been a rise in co-working space operators in Hong Kong.

Knight Frank notes that many took the opportunity to serve the growing market of start-ups, small businesses, and freelancers, who appreciate more flexible terms and smaller footprint. Over time, the belief that co-working space operators will disrupt the office space sector has encouraged an influx of capital investment to the co-working space sector, fuelling its growth.

Office vacancy rates in Central Hong Kong hit 15-year high of 6% in August According to JLL, the momentum in new lettings picked up modestly in August, increasing 10% m-o-m, as the third wave of COVID-19 cases began to recede. Consequently, net take-up improved despite still being in negative territory, amounting to - 147,500 sqft (net floor area or NFA), which is the least negative figure recorded so far in 2020.

The outward movement from Central has also continued as tenants remained firm in their cost-saving mode.

TOP NEWS IN 2020

MOST READ

Daily news: www.hongkongbusiness.hk

Restructuring now inevitable, says Cathay Pacific Cathay Pacific Group warned that a restructuring is now inevitable in order to protect the company, its aviation hub in Hong Kong, and its employees, a group executive said in a press release.

Chief customer and commercial officer Ronald Lam said that it is burning cash at a rate of $1.5b to $2b per month despite actions to reduce cost.

Middle management bears highest mental stress level: survey Middle management endures the highest stress level of unprecedented challenges brought about by the coronavirus pandemic, according to a survey

by Bupa. The survey revealed that over half of the middle management had experienced the symptoms of anxiety (58%) or depression (57%).

Tai Wai subscribers not expected to shift to secondary markets: JLL Tai Wai project subscribers are not expected to shift to secondary markets but to the 1,531 new projects in the vicinity amidst overwhelming subscription for the first phase of The Pavilia Tower, said JLL. All 769 units at the Phase 1 of The Pavilia Tower were sold in two weeks since its launch.

JLL senior director of capital markets Norry Lee mentioned various reasons as to why they think subscribers will not move to secondary markets any time soon.

Over a quarter of Hong Kong employees experienced 30% pay cut Over a quarter or 28% of Hong Kong employees have faced salary reductions of over 30% as a direct result of the pandemic, according to the COVID-19 Hong Kong Report by JobsDB. This is said to be attributed to various factors brought about by the pandemic, including reduced or suspended bonuses, suspension of salary increases, and salary freeze. The effects of the pandemic is expected to create a new normal, presenting new challenges that businesses will inevitably face.

Hong Kong launches public consultation on additional spectrum in 4.9 GHz band The Secretary for Commerce and Economic Development (SCED) and the Communications Authority (CA) have jointly launched a public consultation on the arrangements for assignment of an additional 80 MHz of spectrum in the 4.9 GHz band (4.80-4.96 GHz), a press release said. The consultation also aims to discuss the spectrum utilisation fee (SUF) for the provision of public mobile services.

Hong Kong amongst top four Tier-1 data centre markets Hong Kong emerged as one of the top four attractive Tier1 markets for international investors, operators, and endusers, according to Asia Pacific Data Center Trends H1 report by CBRE Research.

CBRE adds that Hong Kong’s data centre market has been very active during the past 24 months, with 4 million sqft of space either being leased or transacted for redevelopment.

Driven by the growth in global mobile data traffic, Hong Kong’s total IT capacity increased by 27% YoY, to 379.6MW in Q1 from 299.9MW in Q1 2019, with over 215MW in the upcoming supply expected for the next few years.

Hong Kong’s yuppies, low-income groups still underinsured: report Hong Kong’s young professionals and low-income groups are still underinsured despite the city having a low awarenessownership gap in life insurance, according to a Swiss Re report.

According to the study, Hong Kong has the lowest proportion of very high-gap households (6.6%).

Virtual banking knowledge remains moderate amongst Hong Kong customers Although majority of banking customers in Hong Kong are now aware of the term “virtual banking”, the general understanding of what it really means remains moderate, a study

by Nielsen found.

A total of 93% of banking customers surveyed indicated that they are aware of virtual banking.

However, 42% have heard of the term but lack a strong understanding of it, whilst 38% were unable to correctly cite a virtual bank’s name.

Lands Department awards Tai Po site tender to Wealth Honour The Lands Department has awarded the tender for a site at Tai Po Town has been awarded to Wealth Honour Limited on a 50year land grant at a premium of $3.71b, a press release revealed.

The site, Tai Po Town Lot No. 243 at Ma Wo Road in New Territories spans about 22,608 sqm and is designated for private residential purposes.

The minimum gross floor area and the maximum gross floor area are 43,584 sq and 72,640 sqm respectively.

HONG KONG BUSINESS ANNUAL 2021 15

High-Flyers 2020 Profiles of Hong Kong’s Outstanding Enterprises and Business Leaders

Archikris Design Group 18 | BOC Life 20 | Elite Concepts 24 | FIL Investment Ltd 26 | Guerlain 28 | Hang Seng Bank 30 | HKBN Enterprise Solutions Ltd 32 | Lan Kwai Fong Group 34 | Mayer & Associes 36 | Prime Credit Ltd 38 | Soteria Trusts 40 | Standard Chartered Bank 42 | Togher Group Ltd (MayCor Developments) 44 | Yesstyle.com.Ltd 46

CONTRIBUTING WRITERS: Andrew Ng, Angel Tang, Marianne Estioco

ARCHIKRIS DESIGN GROUP

QUALITY DESIGN AND MATERIALS TO FUEL LONG-TERM SUCCESS

I

nnovative interior design is all about pushing boundaries and elevating standards. Whilst there’s no lack of design firms in Hong Kong using innovation as a unique selling proposition, very few of them manage to stay on top of the game as long as Archikris Design, which has secured the Interior Design award for 14 consecutive years.

For more than two decades, Archikris Design – the mother company of residential practice Zchron Design and commercial arm Krisveman Design – has been synonymous with exquisite craftsmanship and well-thought-out details, displayed in a range of luxurious residential and commercial projects for the likes of Escada, Carlsberg, Max Mara and Leica. The firm is also the creative mind behind projects by property developers in town such as Cheung Kong Real Estate Ltd, Hysan Development, and Henderson Land Development.

Helmed by Nison Chan, Archikris focuses on high-end residential projects and large-sized commercial and retail spaces, with returning clients and referrals making up the bulk of its business. The accomplished firm takes pride in its strong bond with clients who keeps coming back time and again, among them Hysan Development, Cheung Kong Real Estate, and Escada.

“The Asian head of Escada and I have become dear friends for some 20 long years,” notes Chan. “Given our joyful experiences working together, he has given us many referral businesses,

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which I’m deeply thankful for.”

Another long-term client is a renowned businessman in the electronics industry, who was hugely impressed by the firm’s acute attention to detail and ability to deliver on time. He first entrusted the firm with the design of his office premise and later also his Yau Yat Chuen and Beacon Hill residences.

“Punctuality plays a pivotal role in our service,” Chan reiterates. “It’s not unusual to see homeowners in Hong Kong suffer inexcusable project delays and poor project performances.

We are here to address the problem with professionalism, integrity and punctuality with tight budgetary control to ensure user goals are met.”

With predominant focus on high-end houses and condominiums, Archikris has completed more than 100 luxury residential and commercial projects from across Asia over the past three years, ranging from 1,500 to 20,000 square feet.

Among them are two artfully crafted residentials in the Southern District (pictured), which boast 4,500 and 3,000 square feet respectively.

“Large-scale projects as such cannot be done without our experienced team of architects and engineers.”

At the centre of the firm’s design philosophy is the “Design and Build” model, which allows the architects and designers to work closely with the engineers at an early stage in order

INTERIOR DESIGNER PHILOSOPHY

FAST FACTS

An interior design consultancy with integrity, quality and punctuality at its core.

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Archikris Design Group predominantly focuses on sizeable luxury residences with an average size of more than 2,000 square feet. Its work signifies the essence of opulence.

The practice adheres to its core values of integrity, punctuality and budgetary control which contribute to keeping its list of heavyweight clients coming back.

The Archikris team is straight with using high-quality materials from around the globe whilst maintaining price transparency.

Opposite Page: Penthouse This page: Residential Projects in Asia

to avoid project delays and budget overruns. The firm combines the expertise of its creative department with the know-how of its in-house construction team for the best possible design solution.

Each project undertaken by Archikris is unique resulting from the surroundings, client’s needs, budgets and other factors to create a solution that blends form and function.

Whilst sustainability matters now more than ever for clients, Chan says the firm seeks to lighten its environmental footprint by using eco-friendly building materials that combine beauty with sustainability, such as low formaldehyde finishes and solar panel system. “We’ve been sourcing the latest eco-friendly materials and up-to-date technologies from around the world to create spaces

that promote health and wellbeing.”

To achieve that, the company spares no effort in equipping employees with necessary skills to bolster efficiency and improve work performance. For example, staff get to visit construction vendors on a regular basis to gain knowledge and know-how required to transform design ideas into reality.

Looking ahead, the company will continue to deliver premium design services that achieve a balance between aesthetic and functionality. “Quality, integrity and punctuality are deeply woven into the fabric of our company culture,” he concludes, “and we will continue to approach every project with the utmost enthusiasm and professionalism.”

HONG KONG BUSINESS ANNUAL 2021 19

Wilson Tang Chief Executive of BOC Life

BOC LIFE

LOGO

THROUGH GOOD AND BAD TIMES —BOC LIFE IS YOUR LIFE PARTNER

T

o navigate the chaotic business environment of the past year in Hong Kong takes leadership skills backed by experience and expertise to guide the creation and implementation of an innovative strategy. A strategy that fulfils the corporate vision. Wilson Tang, Chief Executive of BOC Group Life Assurance Company Limited (BOC Life) is leading the growth of BOC Life through these troubled times to surpass its current position as the top three in the Hong Kong market.

The push to ascend further requires one who knows the business inside and out. Wilson who has over 25 years of experience in the insurance industry and a former Chief Actuary with a strong background in the insurance business, has a vision to rapid implementation of benefits focused on technology and is the best person to lead BOC Life. Wilson’s passion for discovering trends leads to new opportunities benefiting customers, employees, and shareholders. And whilst others may choose to hold back, Wilson is leading the team at BOC Life forward.

“Of course everyone knows the Bank of China, but surprisingly many are unaware of BOC Life - its uniqueness and growing value to customers,” said Tang. “Two of BOC Life’s major strengths are innovation and digital platforms, as well as the industry’s most diverse distribution channels.”

“Planning for the future in the current market and health situation is uncertain - fraught with risk. Interest rates are low. We strive to

create innovative new strategies for products and services that better protect our customers during this time and onwards with new value propositions for their investment, protection, and retirement planning,” he added.

His brand building strategy, focusing on innovation and digitalisation with on-going diversification of distribution supported by prominent media campaigns and product roll outs have paid off.

Whilst the current COVID-19 pandemic has impacted the industry in 2020, BOC Life’s third quarter results show them outperforming the industry with around HK$9b in new business annualised premium.

BOC Life is number 1 in digital sales, booking over HK$1b in annualised life premiums with 10% of that coming from new business. They also ranked as the top firm in RMB denominated policies with HK$3b sales accounting for more than 60% of market share in a niche area where customers are looking at long term currency positions.

BOC Life’s diversified distribution channels include Bancassurance through the Bank of China’s banking platform, with nearly 1,000 tied agencies, brokers, direct sales, and e-channels. BOC Life products and services are available to over 1 million established customers. The company’s 24/7 availability is also attracting new customers from the younger generation who are more active on the digital platform. A mutual benefit, as the industry knows, the earlier one starts, the higher the long-term yield with customers seeing the convenient advantage for BOC Life products when distributed via the bancassurance network.

HONG KONG BUSINESS ANNUAL 2020 21

BOC LIFE

Around 95% of BOC Life’s current sales are made through this channel.

Further, customers can also self-educate to determine savings objectives, planned retirement funding, wealth protection, endowment, and critical illness protection gaps with the digital delivery of products. The new norm caused by the current social distancing restrictions combined with local customers hesitant to discuss financial matters with others are factors contributing to BOC Life’s digital success. There is growing synergy amongst BOC Life’s six channels of distribution that will see the growth of services through other channels. Tang foresees BOC Life to continue to expand their distribution channels to include offering their products through other banks.

Digital product delivery QDAP, a Qualifying Deferred Annuity Policy with tax concession was introduced with support by the Hong Kong SAR Government to supplement individual’s retirement savings. Since inception, BOC Life’s QDAP has a leading market share with over 40K policies. Complementing the QDAP on-line offering are products for short term endowment, annuity, critical illness and healthcare protection. A Critical Illness Policy for COVID-19 continues to be a protection product whose sales are growing as customers become more aware of the strain the pandemic has placed on public and private hospitals with their related costs.

Guided by BOC Life’s Vision statement “To be the life partner of our customers, a valued business of our shareholders, and a preferred employer to our staff members”, Tang and his teams are in motion today -adapting to the “new normal” by adopting innovations in digital to overcoming the current hurdles.

“We strive to be ‘end to end’ in our products and services”, summarises Tang, “In the pandemic era, whether the increased life expectancy comes with sickness or healthiness has become one of the key concerns. In the future, life insurance coverage, including annuities, plans of critical illnesses and legacy protection, should provide customers with self-care health

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management, elevating the insurance function from its traditional postevent claims to illness prevention.”

This concept springs the innovative and proactive strategy of expansion for BOC Life. That is for BOC Life to be a major player in the wellness ecosystem. On the 23rd of November 2020, BOC Life entered a joint collaboration with one of the largest private medical services providers in Hong Kong, Quality HealthCare Medical Services Limited (QHMS) resulting in the establishment of the BOC Life 24-hour “QHMS Wellness Online Shop”. Over one hundred types of medical and healthcare products and services that will include: body checks, vaccinations, COVID-19 tests, and TCM healthcare that can be purchased at membership prices or redeemed

by Wellness Dollars by all BOC Life customers.

BOC Life strengthened its digital presence by launching the official website and Facebook page of the Health Research Institute. The Institute serves as a platform for the dissemination of QHMS verified information regarding preventive measures for COVID-19 and other health information while promoting and giving away Wellness Dollars for use in the online shop. Additionally, BOC Life plans to incentivise existing insurance customers whose lifestyle changes, contributing to the medical examination indexes that have reached specified targets with premium discounts or increased insurance coverage.

BOC Life also seeks to gradually introduce more health and wellness partners to further expand this wellness ecosystem. By promoting this new concept of preventive healthcare with innovative technology and personalised products, BOC Life helps to fill a person’s health protection gap by raising customers’ awareness to develop healthy habits. Strategic alliances can increase primary health care protection, promoting prevention is better than cure concept.

“We are currently in discussion with the leading global smart watch

OUTSTANDING INSURANCE COMPANY PHILOSOPHY

FAST FACTS

To be the life partner of our customers, a valued business of our shareholders, and a preferred employer to our staff members.

• BOC Life has been serving the Hong Kong community with innovative and quality services and products since its inception in 1998.

• Ranked the top-three in the “Outstanding Customer Service” at the “Hong Kong Insurance Awards 2020”.

• Won the “Outstanding Customer Services Award” in the GBA Insurance Award organised by Metro Finance for 2 consecutive years.

• Received the Financial Institution Awards for 6 consecutive years by the Bloomberg Businessweek, recognizing the company’s excellence in annuity products and cutting-edge online platforms.

• Recognized by the Job Market in the “Employer of Choice Award” for 5 consecutive years since 2015.

• Presented with the Caring Company logo by the Hong Kong Council of Social Service for 10 consecutive years, in recognition of BOC Life’s CSR efforts and its contribution to the community.

This page: 1) BOC Life brings love and care to the needy in our community by donating anti-pandemic supplies hand made by the company’s corporate volunteers.

2) As the title sponsor of the Hong Kong Premier League, BOC Life supports Hong Kong’s football development by promoting football activities and nurturing local football players.

brand, Garmin, and the French reinsurance group, SCOR, with a view to fostering a strategic partnership. With reference to the successful international experience by insurance companies, we aim to partner with technology companies and other companies of diverse healthcare industries. Hopefully, this year, we could bring a brand-new self-care health management experience to customers in Hong Kong,” states Wilson.

“Our strategies will also create opportunities for our employees to be trained, developed and promoted from within. We are more Hong Kong than our name leads people to believe, with 98% of our staff being Hong Kong people. We have 400 staff members now and the number is growing. Our emphasis has always been on a work life balance, especially now with the COVID restrictions, we want everyone to be safe and

protected,” adds Wilson.

BOC Life’s life partner mission expands from customers, employees, and shareholders to include society as a whole with their partnership activities in support of Hong Kong Sheng Kung Hui Welfare Council’s “Health Engineer” program and Hong Kong Family Welfare Society’s “Kids Our Love” program. BOC Life is also the title sponsor for Hong Kong’s Premier League. Mr. Tang expressed BOC Life’s CSR program will bring in diverse elements such as innovation and creativity in supporting and nurturing primary and secondary school students in the future.

BOC Life, a life partner that is there with you, each step of the way, through the bad times and the good. BOC Life, winner of the 2020 Hong Kong Business Magazine High Flyers Award for 2020.

HONG KONG BUSINESS ANNUAL 2021 23

ELITE CONCEPTS LIMITED

THE SHU K ATTRACTION

W

hat makes this Sichuanese restaurant stand out in the Hong Kong dining scene? A lot more than the “heat” of chillies.

In a restaurant scene populated by cosmopolitan and sophisticated customers, uniqueness and modernity are two elements that differentiate high-quality establishments from the rest. For Elite Concepts, its Shu K restaurant is the signature brand that delivers unique and modern experiences to discerning food lovers in Hong Kong. Elite Concepts considers itself a “youthful, can-do company, with young ideas ready to grow into tomorrow’s hospitality trends.”

This is the same idea that Shu K embodies as it delivers exceptional service to different generation of customers with a passion for all things new.

Living up to its name, which means “guest of Sichuan’’ or “loyal guest,” Shu K serves authentic Sichuan cuisine characterised by freshness, warmth, and a variety of flavours intensified by delightful seasonings. As expected, these include spices that excite the taste buds and in many cases, inspire a second serving of the dish. At this restaurant, “SHU” also stands for Scoville heat units, which measure the spiciness of chilli peppers, a familiar ingredient in the Sichuan culinary tradition.

The restaurant’s philosophy centres on “sharing the spirit of Sichuan cuisine” by enabling diners to enjoy seven basic flavours: pungent, hot, sweet, sour, aromatic, salty, and bitter. Amongst the finest items on the menu is the tender and sweet Fresh Lobster with Pickled Chilli

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and Garlic, which features the glossy red Er Jing Tiao chilli, with its mild spicy taste and intense scent. Other favourites are Braised Fish Fillet with Pickled Vegetables, Braised Beef in Red Chilli Broth, Grilled Beef Ribs, Kung Pao Prawns, Crispy Chicken with Scallion Oil, and a bubbling hot pot to complete the menu. A popular choice is the aromatic Red Chilli Soup, which can be served with either jet-fresh spotted grouper or premium beef. Those who have a low tolerance for the heat of chilli may enjoy two-thirds of the restaurant’s offerings, which are not spicy. Indeed, the image of Sichuan as the birthplace of a culinary tradition with “a hundred different tastes” is brought to life with every meal at Shu K. K BAR takes its name from Chinese word for unique and unconventional. Adjoining with Shu K, the Modern Sichuan restaurant, K BAR takes the ancient Sichuan culture and ingredients as inspiration.

It offers a series of whimsical cocktail that combine Western tradition and Chinese baijiu to sip and savour. With the stunning harbour view, K BAR also provides a wide selection of wine lists and exotic snacks.

Aside from infusing modernity into traditional Sichuan cuisine, Shu K earns the loyalty of customers by going the extra mile. This means getting to know the typical customer, who is usually a professional, a shopper, or a lover of Sichuan food. Friendly service as well as a comfortable and extraordinary ambience are also amongst the qualities that bring this restaurant closer to the hearts of Hong Kong’s foodies. Most importantly, Shu K exerts effort in finding high-quality

INNOVATIVE F&B CONCEPTS PHILOSOPHY

FAST FACTS

Inside the minds of Elite Concepts staff are a wealth of ideas which will grow into tomorrow’s hospitality trends. We are experts at seeing the potential in new ideas, and making the most of that potential.

• Since its inception in 1991 with the aim to fill a market niche for highquality free-standing restaurants, Elite Concepts has evolved into a dynamic enterprise with the capability to transform visionary ideas into commercial successes.

• Over the years, it has developed a diverse portfolio of restaurants, bars & clubs in Hong Kong, China and Vietnam.

• Elite Concepts restaurants including yè shanghai, nanhai no.1, eyebar, Deng G and SHU K are all widely acclaimed for cutting-edge interior design, and famous city panoramas, each with a story of its own.

• With market sensitivity, attention to details, sound management, and solid expertise, Elite Concepts will continue Defining Asian Hospitality in the years to come.

Opposite Page: Austin Liu, Executive Director at Elite Concepts This Page: (1) Shu K Menu (2) Restaurant Interior ingredients for its dishes, such as carefully choosing even the chillies that have an average “heat” of 50,000–75,000 on the Scoville scale.

Satisfied customers promote Shu K amongst potential diners through positive word-of-mouth, which makes the marketing side of the business much more manageable.

Grateful for the public appreciation, Shu K gives back to its community by supporting a sustainable lifestyle, such as the use of biodegradable takeaway boxes for guests and bamboo materials in the restaurant’s interior design.

The coronavirus pandemic has made the past year a tough time for the restaurant sector, but Shu K is glad that it is able to continue its operations and earn a continuous stream of revenue from loyal customers. The restaurant hopes to continue sharing positive energy through hearty Sichuan food that is accessible to all. For the restaurant’s management, the constant priority is the safety and health of guests and staff members through frequent sanitation and strict hygiene

measures.

Elite Concepts, the prestigious hospitality group behind Shu K, was founded by Paul Hsu in 1991. Paul and well-known chef Deng Huadong, one of the leading contemporary Sichuan chefs, are the duo behind the innovative Shu K restaurant and K Bar, which serves imaginative cocktails and light savoury food with global and contemporary influences. This new collaboration follows the successful launch of the famed Deng G Bistro & Baijiu Bar in Wanchai.

At the Shu K restaurant, Chef Deng expresses his passion for Sichuan cuisine and takes food lovers along an unforgettable gastronomic journey. Chef Deng describes the secret of Sichuan cuisine as “more than just numbness and spiciness, [but] a melting pot of hundreds of dishes and flavours where each dish has its own character and style.”

Shu K and K Bar are located at K11 Musea, a new landmark art and retail destination at Tsim Sha Tsui, with a view of the Victoria Dockside.

HONG KONG BUSINESS ANNUAL 2021 25

FIDELITY INTERNATIONAL

WORKING TOGETHER TO BUILD BETTER FINANCIAL FUTURES

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ith more than 50 years of global investment management experience, Fidelity International has a history of notable innovation and provides best-in-class investment solutions that have helped it become one of the largest retirement asset management firms in Hong Kong and the largest investment service provider in the occupational retirement schemes ordinance (ORSO) market, in terms of asset under management.

Fidelity has been active in Hong Kong since 1981, with more than 400 employees in its Hong Kong office offering retail, institutional and wholesale clients a wide range of products and services, including mandatory provident fund (MPF) and ORSO schemes, personal investing and mutual funds. The services provided are designed to help clients achieve their financial aspirations.

The company vision is to build better financial futures for its clients. “It is also our focus to give people the power to achieve and stay in great financial health throughout every stage of their lives,� said KP Luk, head of Hong Kong at Fidelity International.

In 2020, Fidelity received more than 30 awards, solidifying its position as one of the most awarded fund managers in Hong Kong and reflecting its investment capability, performance and diversified solutions, and the outstanding services delivered by the teams in Hong Kong and across the region.

Because of its multiple achievements and success in assisting its clients, the company was also awarded with Hong Kong Business

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High Flyers Award in the Financial Services category.

Digital transformation With the acceleration in digital transformation brought about by the pandemic, digital innovation is now considered a global business trend. Fidelity understands the need to adapt and change, and has thus invested in enhancing digital channel engagement with quality services provided to stakeholders, and is making use of mobile digital tools to help clients manage their portfolios and understand their financial wellness status.

Fidelity has taken extra steps to help its members by extending its services to online channels so they could stay on top of their accounts during the outbreak.

The firm has devoted resources to drive channel innovation by (1) introducing a digital application journey in its brand-new SmartRetire mobile app; (2) using the most up-to-date identity verification technology to facilitate Tax Deductible Voluntary Contributions (TVC) account opening in simple steps and (3) enabling clients to make contribution payment instantly via Faster Payment System (FPS) on top of traditional means. Leveraging on its global thought leadership expertise, Fidelity has brought together a financial wellness journey, where members can get their financial wellness scores and understand personal performances across four major financial wellness domains.

FINANCIAL SERVICES FAST FACTS • More than 50 years of global investment management experience, with our services reaching customers in over 25 locations worldwide • Active in Hong Kong since 1981, offering retail, institutional and wholesale clients a wide range of products and services, including MPF and ORSO schemes, personal investing and mutual funds • One of the largest retirement asset management firms in Hong Kong and the largest investment service provider in the ORSO market in terms of AUM • Awarded the ‘Best MPF Scheme of the Year’ in five of the past eight years by an independent thirdparty rating agency

This page: (1) Fidelity Retirement Savings Guidelines: Rules of thumb to help people plan for their retirement; (2) SmartRetire mobile app; (3) CSR event with Hong Kong Rugby Union Community Foundation Opposite page: KP Luk, Head of Hong Kong, Fidelity International Engaging clients in the new normal With lockdowns and social restrictions, Fidelity has changed its way of engaging with its clients and members. The firm has moved to online webinars to provide clients with more flexibility and convenience.

Fidelity’s aim is to help MPF members plan and make informed decisions for their retirement, and thus offering a different set of handy widgets in its Retirement Savings Guideline.

What’s more, a comprehensive Global Retirement Survey was introduced in 2020, allowing clients for a pulse check to see whether they are on track to maintain their pre-retirement lifestyle in retirement and provides key actions that may help workers improve their retirement readiness.

Giving back to the community “As a socially responsible company, we care about our community. We have a dedicated CSR Committee that leads various charitable events and volunteering opportunities for our employees,” said KP Luk. This is evident in their initiatives and projects; for example in 2019, the Fidelity team helped reduce waste by helping sort 2,910kgs of surplus food–equivalent to 6,937 meals–for Feeding Hong Kong to redistribute to those in need.

The Hong Kong team also formed a rugby team that played for a good cause in a one-day tournament and raised funds for Hong Kong Rugby Union Community Foundation supporting The Deaf Rugby Programme.

Diversity and Inclusion Apart from giving back to the community, the company ensures a greater diversity of voices and fosters an inclusive environment in different levels. Fidelity is committed to building a culture where all employees feel welcomed, valued, and supported to thrive in their careers. In November 2019, the company achieved its gender balance target of 30% women in senior management globally, a year ahead of schedule. The company has also implemented new ways of working to build an agile family-friendly culture.

Moving forward With an increasing retirement population in Hong Kong, the industry is exploring solutions on post-retirement products and services via digital channels. Fidelity aims to provide holistic post-retirement solutions, together with an all-round education and client engagement to serve their different needs.

Mr. Luk also notes that it is important to embed sustainable investing principles in Fidelity’s investment process and incorporate non-financial consequences into the process to create more positive outcomes to the environment and society, which leads to informed decisions and ultimately delivers better financial value and risk management for clients.

“We will continue to bring our best practices from our global counterparts into Hong Kong to drive innovation for customers,” KP Luk concludes.

HONG KONG BUSINESS ANNUAL 2021 27

GUERLAIN

LEGACY OF ART, LUXURY, AND BEAUTY CONTINUES

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or almost two centuries, Guerlain has been crafting some of the world’s most coveted and luxurious beauty products. Founded in Paris in 1828, Guerlain is far more than a cosmetics brand. Through the years, this iconic name has become synonymous with the elegant and artistic pieces that inspire countless women across the world.

“Guerlain is a maison with a crystal clear raison d’être: Everything we do, we do in the name of beauty,” noted Sincere Yung, Brand General Manager for Hong Kong and Macau at Guerlain. “For 192 years Guerlain has explored, innovated and perfected our technique in fragrance, skincare and makeup. We boast a rich diversity of talented and committed people who show that luxury and sustainable development are perfectly compatible,” she adds.

A holistic experience From its storied beginning in Paris, Guerlain has served the upper crust of French and European society since 1882. Since then, it has moved on to become a truly global and modern beauty brand whilst staying true to its roots as an exclusive and luxurious perfumery.

“We are one of the most active digital platforms in Hong Kong. We use digital solutions as the key driver in order to bring our customers from online to offline, as it maximises the exposure and traffic to our popup store,” Yung explained.

Guerlain has ten boutiques in Hong Kong. Each store is carefully crafted to elevate customer experience; stepping foot in one of these

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boutiques is like entering an exquisite work of art.

“We do not only promote the efficacy of products but also elevate human well-being, cultivate the wonders of nature, and treasure artistic gestures in all forms. We believe that it is so important to deliver joyful and radiant beauty from within. It is the emotional hook that creates customer interest which will also leave a positive impact to the world,” Yung shared.

Guerlain’s most iconic yearly campaign is the Bee Garden, which promotes its Abeille Royale line of products. Abeille Royale is Guerlain’s hero line, and it uses pure black bee honey and royal jelly to revitalise the skin and reverse visible signs of ageing. It uses rare materials produced by a unique species of black bees, which are native to a natural reserve in Ouessant Island, France.

“Guerlain not only creates exceptional products to reveal and prolong the beauty of every woman, we also bring the well-being through ultimate beauty experience. The exclusive customer experience and engagement enables Guerlain to have a group of loyal advocates with different age ranges,” Yung explained.

Bee Garden incorporates Guerlain’s core brand values in a unique 360-degree marketing campaign. In 2020, the Bee Garden promoted sustainability by using repurposed wood and lush greenery in its pop-up store. The Bee Garden campaign featured a mix of digital and physical initiatives, providing a holistic experience for both old and new customers.

DIGITAL - BEAUTY & COSMETICS PHILOSOPHY

FAST FACTS

A commitment driven by a duty to act and pass on our legacy to future generations. A commitment carried out with conviction and humility by all of our teams worldwide, in the name of beauty.

• Guerlain is committed to a more beautiful and responsible world.

We act for biodiversity, sustainable innovation, climate and solidarity.

Above all, we protect one of our planet’s most important treasures: bees.

• Since 1853, when it first landed on our iconic Bee Bottle, a special bond has connected us to the bee. Now endangered, the bee has become a guide for our commitment • In 2018, we created the Bee School, an awareness programme for primary school children led by company employees, that invites children to learn about the bee’s important role, while raising awareness about the need to protect them.

• In 2020, we launched the UNESCOMAB partnership, in collaboration with the OFA, designed to train new beekeepers, create beekeeping affiliates across the world and measure the benefits of the pollination in biosphere reserves.

Opposite Page: Sincere Yung, Guerlain’s Brand General Manager for Hong Kong and Macau region This Page: Guerlain’s Bee Garden The strength of Guerlain’s Bee Garden campaign is borne out by the numbers. With its 360-degree marketing strategy, Bee Garden has successfully generated over 14.9 million online advertising impressions and over 17 million media values.

“We bring the community together in all our campaigns,” Yung shared.

“From Bee Brave Be Bravo in 2017 to Bee the Queen in 2018 to Beauty & The Bees in 2019, we always fill our campaigns with love and care. We emphasise well-being and living a life with a balance.”

Powered by nature Guerlain has long harnessed the power natural ingredients in its products.

The maison’s founder, Pierre-François-Pascal Guerlain, created the Eau de Cologne Impériale for the Empress Eugénie on the occasion of her marriage with the Emperor Napoleon III in 1853. At the time, he decorated Guerlain bottles with bees, symbols of the Empire and a festoon motif, inspired by the tiles adorning the top of the column of the Place Vendôme.

This resulted in the birth of the iconic Bee Bottle, which remains Guerlain’s symbol to this day.

Since then, the bee has continued to inspire Guerlain’s creations and decorate its most precious bottles. Seriously endangered today, the bee guides Guerlain’s commitment to sustainable development. “We give back to the community via our sustainability program and with our charity donations at both the global and the local level. At the global level,

this commitment encompasses several key areas including preserving biodiversity and bee protection,” Yung said.

With this goal in mind, Guerlain has dedicated numerous partnerships to bees. In 2017, it launched Bee University, an event that brings together top specialists in the field to determine the best bee conservation solutions and practices. This was followed in 2018 by the creation of the Bee School, an awareness programme that invites primary school children to learn about the importance of bees. And in 2020, it launched the UNESCO-MAB partnership in collaboration with the OFA. This program is designed to train new beekeepers, create beekeeping affiliates across the world and measure the benefits of the pollination in biosphere reserves.

With its history of exquisite craftsmanship and its dedication to beauty Guerlain will continue to provide high-quality and luxurious cosmetic products for generations to come. Through its partnerships with leading organisations, it also remains committed to its goal of environmental sustainability. In Hong Kong and Macau, Guerlain will continue its tradition of providing peerless service to its customers.

“Our uniqueness as a parfumeur and skincare expert and makeup trend setter puts us above and beyond others. Our success lies in how we turn our customers into loyal friends. With continuous caring, listening and sharing with our customers, they become our loyal brand advocates and our friends,” Yung said.

HONG KONG BUSINESS ANNUAL 2021 29

HANG SENG BANK

LOGO

BUILDING HEALTHY AND LONGLASTING CLIENT RELATIONSHIPS

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ntrepreneurial corporate and local business are integral to Hong Kong’s economic success. With roots sinking deep in their home, Hong Kong, Hang Seng spares no effort in building healthy and long-lasting relationships with their clients. As businesses have faced immense difficulties due to the COVID-19 pandemic, the bank has shown their commitment to be with their customers in good and bad times by providing unparalleled support to help its clients weather this unprecedented crisis both online and offline.

Solutions to ease pandemic strain “We focused on providing liquidity support to customers and our proactive approach and fast response has helped see customers through this difficult period,” said Donald Lam, head of commercial banking at Hang Seng Bank.

In early February 2020, the bank established a principal moratorium programme to extend the principal repayment period for many of its commercial customers. Hang Seng is also amongst the first batch of banks taking the initiative to reach out to commercial customers in the hard time.

Hang Seng Bank also threw its weight behind various government initiatives geared at helping SMEs. Hang Seng fully supports the Special 100% Loan Guarantee under the SME Financing Guarantee Scheme (“SFGS”). To simplify the application

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process for the needed business owners, Hang Seng launched the first-in-market online application for SFGS, which enables businesses to apply for the SFGS with just three simple steps.

Making one step easier for owners to get the funds to lessen their pressure on paying rent and salary during this difficult time. As of 30 December 2020, over 40% of applications for Special 100% Loan Guarantee came from online channels.

In addition, the bank also supported the Hong Kong Monetary Authority’s Pre-approved Principal Payment Holiday Scheme, which provides payment holidays to over 80% of eligible customers.

Under the scheme, principal payments of loans will generally be deferred by six months, whilst the principal repayment of trade facilities will be deferred by 90 days.

“Relieve measures aside, it is our professional relationship management team who has been keeping a close relationship with clients that truly help the customers through by tailor-made proposals to alleviate their burden,” Lam added.

Simplify the way of doing business Hang Seng’s goal is to simplify the way businesses manage their finance. “Every features in our digital banking solutions are designed based on the business needs of our customers. We aim to make their business management easier and more efficient,” Through continued investment in enhancing its digital capabilities,

COMMERCIAL BANK PHILOSOPHY

FAST FACTS

Strive for service excellence and maintain long-term relationship with customers.

• Founded in 1933, Hang Seng is one of Hong Kong’s largest listed companies. Our market capitalisation as at 30 June 2020 was HK$248.7 billion.

• The Bank serves over half the adult residents of Hong Kong – more than 3.5 million people – through over 290 service outlets. We also maintain branches in Macau and Singapore and a representative office in Taipei.

• Established in May 2007, wholly owned subsidiary Hang Seng Bank (China) Limited is headquartered in Pudong, Shanghai, and operates a mainland China network.

• Hang Seng is a principal member of the HSBC Group, one of the world’s largest banking and financial services organisations.

• The Bank’s major business activities comprise wealth and personal banking, commercial banking, and global banking and markets. The Bank also offers a comprehensive range of renminbi services

Opposite Page: Donald Lam, Head of Corporate and Commercial Banking at Hang Seng Bank LimitedThis page: (1) SME Financing Guarantee Scheme; (2) Remote Account Opening Service for business accounts is now available.

the bank has been able to provide seamless services to customers during the pandemic. Hang Seng’s digital platforms have provided an option for business owners to handle and manage their banking at ease from the start of business to its day-to-day operations.

Under the Business Banking Remote Account Opening service, business clients can open an account fully online anytime, anywhere without the need to make an appointment or personally visit a business banking centre.

The paperless, digital and simple account opening process is first available for all sole proprietors and one-person limited companies registered in Hong Kong.

“This is the latest digital innovation under the Bank’s ongoing investment in financial technology aimed at supporting customers to capture business opportunities and enhance operational efficiency,” Lam noted. “The convenient service is particularly timely given the challenges brought by social distancing and the change of lifestyle habits this year.”

Timely incoming and outgoing payments are essential for business success. Hang Seng has introduced the first-in-town Inward Payment

Tracker complemented by the existing Outward Payment Tracker, allowing customers to easily keep track of the real-time remittance progress on the bank’s digital platforms. Constant communications with buyers and sellers of the payment progress can be avoided. “We believe by enhancing communications with business partners and speeding up the cash flow cycle, our customers can gain a head-start in every business move,” Lam added.

Furthermore, to enable customer’s flexible use of their funds, Hang Seng’s ‘One-Click Time Deposit’ offers a simple solution for customers to set up time deposits with customised interest rates online with just a single click.

“By focusing on the needs of our business clients, our new digital initiative helps our customers save time, access information more easily and make faster decisions. We will continue to uphold our commitment to service excellence both online and offline. The two services can continue to perfectly complement each other to support our customers every step of the way,” Lam concludes.

HONG KONG BUSINESS ANNUAL 2021 31

HKBN ENTERPRISE SOLUTIONS LIMITED

PASSIONATE PURSUIT OF PURPOSEFUL PROFIT

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aking Hong Kong a better place to live—this is the promise of the premier Information and Communications Technology (ICT) service provider, Hong Kong Broadband Network (HKBN). This is also the same promise that fuels the company on its transition from telco to ICT services leader.

As a world-class telecom company established in 1999, HKBN has always been dedicated to its core purpose: providing a broad range of services such as broadband, mobile, entertainment, and voice and enterprise solutions at an exceptional level of desirability that drives better uptake and overall, better profits.

Whilst citizens of the country would like nothing more than to see their home flourish and thrive, delivering this vow does not come easy, yet by uniquely combining the strengths of three leading telcos, a WiFi expert, a cloud expert and a preeminent technology provider, HKBN has unleashed the power of business with a full suite of ICT solutions.

“We believe the role of purpose, when unleashed by more businesses with premier ICT solutions, can have a transformative effect to make the world a better place,” said Billy Yeung, Co-Owner and Chief Executive Officer - Enterprise Solutions.

“We actively encourage more people to realise a future where purpose becomes the driving factor for private business. At every possible occasion, we do our best to inspire different stakeholders to join this purposeful profit evolution,” Billy added.

Strength amidst the global crisis Whereas COVID-19 is an unprecedented global crisis, HKBN sees COVID-19

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as an unprecedented calling to serve the community and an accelerant for much needed transformations.

HKBN embraces imperfect and incomplete information decision making and relies on our agility to adjust to changing conditions. In uncertainty, HKBN’s clear core purpose of “Make our Home a Better Place to Live” sets a very clear priority on safety above all else, impact to the community and taking care of stakeholders.

HKBN embraces the “Change or Die” phrase and proves that they can continue on living. With the company already exited past predicaments such as SARS in 2003 and the global financial crisis in 2008 stronger, they are confident that they would be able to do it again with COVID-19.

Combined strength of tri-carrier network diversity Constantly looking for and delivering new ways to disrupt the market, HKBN has become the second-largest ICT solutions provider to both enterprise and residential markets, thanks to their strategic integrations.

Exceptional to Hong Kong, HKBN is the city’s only carrier that possesses a tri-carrier fibre network that combines the company’s strength with New World Telecom and WTT Networks.

Covering over 2.3 million households and over 7,000 non-residential buildings and facilities, this unique tri-carrier network allows customers to enjoy unprecedented diversity and resilience.

“For businesses, particularly those who operate or depend on missioncritical applications, we offer network resilience that is intelligently built-in and always on. Couple that with our one-stop capabilities to deliver powerful, scalable ICT solutions… and we’re perfectly positioned to enable businesses

BEST NETWORK, BROADBAND, CLOUD & ICT SERVICES PROVIDER PHILOSOPHY

FAST FACTS

HKBN is driven by a passionate pursuit of Purposeful Profits, striving to become Hong Kong’s most preferred Information and Communications Technology (ICT) solutions provider.

•

•

HKBN continued to deliver a solid set of operational and financial results in FY20 with its group revenue, EBITDA and Adjusted Free Cash Flow (AFF) increased year-on-year by 85%, 47% and 49%, respectively, to $9.45m, $2.51m and $1.1m.

The company’s enterprise revenue increased by 103% year-on-year to over $4.7m. Total number of enterprise customers increased to 105,000. Network covers over 7,300 commercial buildings & facilities.

This page: More than 1,000 HKBN Enterprise Solutions Talents joined hands in expressing their determination to achieve heights for FY20! to do and achieve more for their customers,” explained Doris Chan, CoOwner and Chief Operations Officer, HKBN Enterprise Solutions.

Stronger as one At HKBN, management and employees believe that to succeed means to evolve relentlessly. Broader coverage. More innovation. The latest technologies.

With the digital world sprouting exciting new possibilities, the company is delivering even better services to make daily life easier and doing business far more profitable.

“To achieve all this, we’ve accelerated expansion of our expertise through acquisitions, spurring change on the inside. By uniquely combining the elite strengths of acquisitions and mergers, namely, Y5Zone, NWT, ICG, WTT and JOS to our bench, we have transformed our competitiveness and capabilities to create one united, stronger HKBN – ready to disrupt and lead the market,” the Group explained.

With each sequential integration of the five acquisitions postManagement Buy Out in 2012, HKBN has learned and strengthened the “best of breed” merger process where there is no ex-HKBN, ex-WTT, ex-JOS, etc silo culture that should survive, but rather there is only one “best of breed” 1-HKBN. Currently, the firm is well on track to fully realise the highlighted $300m synergies from the recent WTT Merger and JOS acquisition by FY21.

Aside from these acquisitions, HKBN Group, HKBN Talent CSI Fund, Kerry Group, Peterson Group Charity Foundation and Wu Jieh Yee Charitable Foundation have also joined hands last October 2020 to leverage their resource capabilities and expeditiously launch the ConnectED@Home Programme for Disadvantaged Students, providing free high-performance tablets, 6-month 4.5G unlimited data SIMs and Wi-Fi dongles worth over $2.7m to over 1,300 students from disadvantaged families for online learning.

The programme helps disadvantaged students to learn from home, ease the financial burden for their families, and narrow the digital divide. The programme has 10 NGOs as partners to identify eligible disadvantaged families and donate Internet devices and services based on their needs.

More than ready to disrupt and lead Throughout HKBN’s journey of incredible change, the company has never lost sight of their primary goal: to give customers the best, most innovative and reliable service possible.

HKBN’s digital transformation is now paying big dividends. Being digital has transformed the company from a “fibre” company to a “distribution” company, leveraging on the massive reach of 1-in-3 residential households and 1-in-2 active enterprises in Hong Kong.

Beyond operational transformation, the company also launched the HKBN Talent CSI Fund seeded by co-owners’ contribution of 4 million HKBN shares currently valued at over $54m. This fund is governed independently from the HKBN executive group with the additional checks and balances of independent non-executive directors as voted in by co-owners and provides CSI Fund the runway to make strategic impact, rather than just short term ad-hoc initiatives.

Returning to their core purpose, the premier ICT solutions provider has one certain path paved for the future: making Hong Kong a better place.

In October 2020, the company announced their partnership with Finnish cybersecurity service provider FSecure, offering new solutions under HKBN PROTECT. The solutions will empower HKBN residential customer’s home network and Internet devices with all-around at-home and on-the-go protection.

“At HKBN, we are innovators, managers, marketers, technologists, CoOwners, mothers, husbands, sons, daughters and much more. While we wear many different hats, what we share in common is the love for the city we call home, our Hong Kong,” HKBN added.

HONG KONG BUSINESS ANNUAL 2021 33

LAN KWAI FONG GROUP

THE LAN KWAI FONG GROUP’S SIXTH SENSE FOR SUCCESS

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riginally founded by a Canadian refugee from the rag trade in 1983, the Lan Kwai Fong Group approaches its fourth decade moving from success to success. It all began when the founder and current chairman needed a place to entertain his overseas garment industry clients.

In the 1980s, the area of D’Aguilar Street and Lan Kwai Fong was mostly small shops that specialised in fresh flowers or warehousing embroidery, along with one Chinese supermarket.

This inspired Allan Zeman with a vision and concept to convert the Chinese supermarket to a restaurant just off Central.

“I saw a lot of beauty and potential in the area and decided to open California, a restaurant that turned into a nightclub in the evenings. And it all went from there,” said Allan, chairman of the Lan Kwai Fong group.

This year, the Lan Kwai Fong Group was recognised as one of Hong Kong’s Highest Flyers in 2020 for food and beverage (F&B), entertainment, and property development, The group’s entrepreneurial spirit and sixth sense for success continues with its multiple achievements.

What the LKF Group is all about “It’s really all about the customer and making them happy. We bring happiness to people by creating an environment where people can come to get happy and be happy with friends”, said

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Jonathan Zeman, LKF Group chief executive officer. “We constantly seek opportunities for growth, innovation and expansion in F&B, entertainment, and property management,” he added.

“In Hong Kong we are all about LKF Central. At some point we looked to expand to other areas to replicate our success in Hong Kong, bringing in the best of the best to the LKF Group in terms of people and locations,” Jonathan said.

The company opened Chengdu LKF in 2009 and secured new partnerships in China and Thailand.

“Of course the group’s success in Hong Kong does not translate directly to other locations. We had to adapt to local culture with something new, something international, something to differentiate. We are ever changing in music, food, fashion and entertainment,” added Jonathan.

The key to property development Lan Kwai Fong Group’s crowning achievement in Hong Kong property development is The California Tower, a combined property where the original California Grill was located.

The property opened in 2014, and since then has brought fresh, new, and unique dining and entertainment experiences to dazzle the five senses of a variety of clientele and entertainment seekers in Hong Kong.

Meanwhile in Thailand, the group is nearing completion on

ENTERTAINMENT PHILOSOPHY

FAST FACTS

Lan Kwai Fong Group is a disruptive business. It has the last word on lifestyle trends in Hong Kong, because it’s a place where creativity takes centre stage, supported by collaborative efforts from a tremendously talented team. We’re also constantly seeking opportunities for growth and expansion” - Jonathan Zeman, LKF Group CEO

• Lan Kwai Fong Group is one of the key players of the property market in Hong Kong, with a focus on premium locations.

The group also has interests and developments in Asia, and most notably in China and Thailand.

• With extensive brands, properties and investments, Lan Kwai Fong is highly regarded as the foremost entertainment, hospitality and lifestyle brand in the region.

• A market leader in a host of different fields as varied as F&B, retail, leisure and entertainment, Lan Kwai Fong Group has become a success story thanks to its creative vision, constant innovations and pioneering ventures.

Opposite page: Jonathan Zeman, LKF Group CEO This page: Aria Launch Release Aquella, a 170-hectare resort situated on a 2.5km-wide pristine beach on the west coast of Phang Nga, north of Phuket. The place is said to feature a golf and country club with luxury villas after its development.

“Our goal is not just about wow-ing people with Michelin star level dining but with the best overall lifestyle experience,” continues Jonathan.

Furthermore, the group now acts as the lead partner in the LKF852 Prince Bay property project, which introduces LKF lifestyle and entertainment culture into Shenzhen. LKF852 will provide clients with diverse and innovative experiences inspired by the quote “Love life, Love style”.

Not to rest upon its laurels, the group also has other lifestyle and entertainment projects in Hong Kong, Xian, and Shanghai, which clients can look forward to in the future.

Challenge fosters agility What will the new normal be? This is a question that bugs everyone as it changes daily.

F&B service is traditional, but the pandemic has shown that people are willing to change their lives and willing to order from home. For the group to ensure quality, it launched a LKF Delivery Direct, incorporating culinary techniques and innovative packaging ensuring the quality of dinners delivered.

“As capacity restrictions change and fluctuate, we’ve implemented technologies to increase efficiencies with dine in reservations and purchasing systems to preserve tight margins. We have up to the minute capacity knowledge at any of our outlets using our Cloud based QRS software,” he added.

The LKF group’s agility is born from four decades of experience in the ever changing Hong Kong and Asia business environment.

“Now, we have mainland Chinese employed by banks and law firms so we are adapting to changing tastes. The early pandemic hit us hard. But people did come out again with the easing of restrictions at better than pre-protest level. People will come back to enjoy themselves,” Jonathan said.

In addition, the group opened Aria in mid-August, taking diners on a culinary journey to a modern Italian ristorante against the backdrop of the expansive panoramic view of the iconic Central Business District skyline. Executive Chef Andrea Zamboni titillates clients with the ultimate Italian food experience featuring family style recipes with a twist.

The secret to the sixth sense for success for the Lan Kwai Fong Group? “Love what you do,” Jonathan said. “Be resilient and just get it done. The devil’s in the details.”

Fashion changes, but always offers the best and newest exciting taste, smell, sight, sound, and feel. For this, the Lan Kwai Fong Group wins the Hong Kong Business High Flyer 2020 Award.

HONG KONG BUSINESS ANNUAL 2021 35

MAYER & ASSOCIES

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MAYER & ASSOCIÉS: A NEW IDENTITY IN 2020

ayer & Associés (M&A) was established in Hong Kong in 2001. It is a Hong Kong-based International law firm registered with the Law Society of Hong Kong, previously known as TMA (Thomas, Mayer & Associés). The change of the Firm’s identity in 2020 reflects a new spirit while maintaining the Firm’s high professional standards.

Our main focus Our Firm mainly assists its clients with the structuring of their investment projects by offering customized and technical solutions based on its in-depth knowledge of these regions’ economic and legal environments. Our clients benefit from Eric Mayer’s 26 years of experience of commercial and legal practices in the relevant jurisdictions.

Our Firm also provides expert legal advice to both corporations and individuals across various dedicated practice areas.

A new logo: our values M&A’s new logo adopted in September 2020 reflects the Firm’s values: integrity, good governance, a responsible attitude, and a relationship with clients built on trust without compromising our independence.

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Our clients’ trust in us requires great attention that cannot be exemplary without a commitment to these values. We implement tactfully our KYC (Know Your Client) due diligence obligations, ensuring that our clients and their files are legitimate and deserve our dedicated attention.

Creativity M&A’s experience and values allow us to provide quality independent legal advice in cases that are sometimes complex and require inventiveness.

We are resourceful in finding legal solutions for our clients involved in cross-border transactions. Contributing to our client’s success stories is our reward. Our management style unleashes creativity and fosters healthy competition and collaboration within the legal team making up our Firm.

Hi-tech IT tools M&A has invested in modern and comprehensive hi-tech tools to communicate with clients and manage their files: we protect our client’s legitimate privileged information. Each member of the Firm’s Legal Team benefits from the hi-tech IT solutions installed in their mobile, laptop, and PC to communicate safely with clients and store safely client information.

LAW FIRM

PHILOSOPHY Integrity, good governance, a responsible attitude, and a relationship with clients built on trust without compromising our independence are the values that guide us in all our actions.

FAST FACTS • Mayer & Associés (M&A), previously known as Thomas, Mayer & Associés (TMA), is a law firm registered with the Law Society of Hong Kong since 2001.

• M&A specializes in the economic migration of companies from Europe to Asia Pacific, particularly China, and from Asia Pacific to Europe, particularly France.

• The firm provides clients with the possibility to carry out their investments projects owing to technical solutions based on its indepth knowledge of the economic and legal environments of these regions, together with its more than 26 years of experience in the commercial and legal practices of the relevant countries.

From left to right and from top to bottom: 1st roll: (left) Sophie Cante ; (middle) Marion Genova ; (right) Sandra Bacha 2nd roll: (left) Gwendoline Verdier ; (middle) Eric Mayer; (right) Aline Sun 3rd roll: (left) Anaelle Rioufol ; (middle) Julie Cheung ; (right) Wissem Younsi

SOCIAL RESPONSIBILITY Additionally to pro bono work made from time to time for individuals in distress, Eric Mayer is involved in two charities: the French Solidarity Fund “Fonds d’Entraide des Français de Hong Kong (The FEF Trust)”and ANU Mongolia Charity (www.anumongoliacharity.org), which are both recognized by the Hong Kong government as being charitable trusts of a public character.

HONG KONG BUSINESS ANNUAL 2021 37

PRIME CREDIT

LOGO

PERSONAL FINANCE WITH THE SPIRIT OF PRIMECREDIT BROTHERHOOD

W

hen it comes to personal finance, locals in Hong Kong have long held a wide array of choices. From short-term lending to car finance to credit cards, the market can often be a daunting experience, particularly for those with smaller or urgent lending needs.

“Borrowing money is not something local people are comfortable openly discussing with friends or family,” says Beril Shen, Chief Business Officer at PrimeCredit. “Some can feel helpless.”

That is where the team from PrimeCredit Limited stand far ahead of the field. It knows and understands the needs of Hong Kongers, and has a 40year proven track record of providing financial products and services that are tailored to individual customers. Its people-focused approach is aimed at solving financial problems and enabling opportunities in a sustainable manner.

From establishing credit for new entrants into the job market or emerging entrepreneurs, to credit score improvement to those who need it, the advisors at PrimeCredit Limited are there to listen, advise and—most importantly—help.

“Our customer focus is on developing long-term relationships in the spirit of PrimeCredit brotherhood,” continues Shen. “Our clients feel we are there to help when they need us and that we will always have their back.”

This is clearly evident in Prime Credit’s latest personal loan campaign, which reinforces PrimeCredit brothers’ empathy and their persistence in offering help during the difficult time between Christmas and Chinese New

38 HONG KONG BUSINESS ANNUAL 2021

Year. This is especially timely with extension of social restrictions affecting businesses and employment currently. Online loan applications are easy and quick, as is the simple, three-step process. No document and handling fees are required (subject to T&Cs applicable). Clients can get instant loan disbursement to any of their designated bank accounts or get cash directly from an assigned PrimeCredit branch. In addition, successful loan applicants will also earn a cash bonus of up to HK$8,000 as a “Laicee” during the festival seasons of Christmas and Chinese New Year (subject to T&Cs applicable).

The PrimeCredit brotherhood spirit The spirit of brotherhood is also a strong part of the corporate culture of PrimeCredit Limited, and principaly what attracted Shen and many of her colleagues away from the mainstream banking sector. Many of them have now been colleagues for close to 30 years at PrimeCredit, building a strong brand across the versatile platform for the Hong Kong market.

“Our brand is localised to back up our mass market customers with products and services designed in line with their needs,” reaffirms Shen.

“Our focus is on lending and credit needs on personal loans and credit cards. Of course bank lending services are available, but if you are freelance, do not have stable income, or don’t have a top-grade of credit rating, they may exclude you.” This is where PrimeCredit steps in, with responsible lending parameters to assist any customers in need, including sole proprietors and entrepreneurs, with finance that is

OUTSTANDING FINANCE COMPANY PHILOSOPHY

FAST FACTS

With over 40 years of experience in offering financial products and services, PrimeCredit is committed to providing high-quality customer service, professional consultation and tailormade solutions. Whilst ensuring all their staff are well trained with a high standard of product knowledge, PrimeCredit also emphasizes its understanding of what the customers feel, think and wish, in order to provide them with a comprehensive range of all-round, customer-centric and value-added services.

• PrimeCredit Limited is a leading finance company in Hong Kong established in 1977 focusing on Personal Loan and Credit Card services.

• In August 2004, Standard Chartered PLC acquired PrimeCredit, and PrimeCredit became a wholly owned subsidiary of Standard Chartered Bank (Hong Kong) Limited.

• In May 2015, PrimeCredit was acquired by PrimeCredit Holdings Limited which is a consortium formed by a collaboration of China Travel Financial Holdings Company Limited, Pepper Australia Pty Limited and York Capital Management Global Advisors, LLC.

This page: (Left) PrimeCredit personal loan campaign; (Right) WeWa credit card Shoot N Win interactive mobile AR game; Opposite page: Beril Shen, Chief Business Officer, PrimeCredit Limited based on personal credibility.

The lending consultants at PrimeCredit provide their clients with solutions for cash turnover needs, debt consolidation, debt restructuring, and credit score improvement - helping tens of thousands to reduce financial stress yearly. “Tough times will always pass” points out Shen.

“But we are there for our clients in both bad and good times—that is the spirit of PrimeCredit brotherhood.”

PrimeCredit is highly client-centric and its client services are widely Accessible. Customers are able to visit any of 30 branches across Hong Kong Island, Kowloon, and the New Territories, or contact its customer service team by phone. There is also online access via PrimeCredit’s website, Facebook page, and technology-driven mobile app that give clients “one click” solutions for cash withdrawals, 24x7 bank transfers and access to revolving loan accounts.

The “3A Principal” The cornerstones of PrimeCredit’s success in the Hong Kong market have long been based on its principles of the three As: creating products and services that are consistently Affordable, Available, and Accessible.

Affordable borrowing from a responsible lender requires due diligence to understand the customer’s needs. By understanding economic frustration in HK, flexible repayment arrangements is now available to customers in need so as to support them to get through financial hardship. “This is how we help our clients,” says Shen.

Making products Available through a variety of services is also important. In this way, PrimeCredit focuses more on customer borrowing experiences. Many customers may just need a temporary small amount of cash flow for help. It doesn’t make sense to ask them to go through the same process of a larger loan that would require more documents and more time to process. Therefore, for small loans, instant loan approval and disbursement solutions are offered to allow 24x7 easy online borrowing experience with documents waiver. Loan applications can be completed and approved within 10 minutes, with customers able to access the borrowed funds right away in their bank account.To enable such convenient and fast services, PrimeCredit has adopted e-KYC, through ID authentication and facial recognition technology.

Shoot N Win with the WeWa Card In 2016, PrimeCredit launched its unique WeWa credit card, creating a better, more rewarding proposition for young consumers’ lifestyles. This striking card rewards spending with cash rebates, merchant offers and discounts through a personalized, interactive shopper experience of the OmyCard mobile app.

The card has recently launched an innovative and award-winning augmented reality (AR) game called Shoot N Win. Cardholders can explore participating shopping malls, supermarkets, and department stores in different districts in HK and seek out some of the characters floating in AR interface, shoot and earn specific rewards or discounts before purchase.

PrimeCredit is continuously working with merchants to expand its offers and engage their customers of all ages. The WeWa credit card applications are processed online, with the issuance of a virtual card eliminating the need to wait for application approval.

Warning: You have to repay your loans.

Don’t pay any intermediaries.

Complaint Hotline: 2111 2999 Money Lender’s Licence Number: 1084/2020

HONG KONG BUSINESS ANNUAL 2021 39

SOTERIA TRUSTS

ON PROVIDING CREATIVE SOLUTIONS AND BUILDING TRUST

S

oteria Trusts has been faithful to its principle of assuring its clients that their assets are well-managed and protected within their lifetimes as well as creating a tax efficient legacy for their beneficiaries. Named after the Greek goddess of safety, deliverance, and salvation, the asset management company has proven that its offered schemes are focused almost exclusively on the clients’ comfort.

For five fruitful years, Soteria Trusts pushed to be progressive and become one of a kind in the industry through utilising certain parts of legislation. Other than its unique tax mitigation, its employees are also trained to have attention to detail, making their solutions more personal than just taking a broad-brush approach.

Innovative services The umbrella company Business Class Group has always been committed to providing a holistic range of quality services to the professional expatriate community all over the globe. With that mantra ingrained in mind, Soteria collaborated with highly specialised partners to bring the most comprehensive, allencompassing solution to its clients. Each of the schemes is domiciled in Hong Kong and operates under the territory’s robust and wellregulated domestic Trust legislation.

It also serves as an open door to all nationalities with a specific focus on those with United Kingdom situs assets, irrespective of employment and residential status. Thus, the company has made

40 HONG KONG BUSINESS ANNUAL 2021

their schemes considerate of multiple jurisdictions. Wendy Clarke, Senior Business Development Executive at Soteria Trusts, shared that their current clientele status and classification are quite diverse, ranging from retail, individuals with high and ultra high net worth, family offices, and family investment companies.

“We look into preserving wealth and cascading it through future generations,” Clarke added, saying their structure examines over a 100 double taxation agreements negotiated at government level.

Setting apart from the competition Clarke proudly presented their IHT Planning Service and a range of trusts, all of which help attract new clients. Designed to be UK inheritance tax efficient, their IHT Solutions help clients to reduce or mitigate the five taxes that resident and non resident UK and Non UK Nationals are exposed to when owning UK property.

Part of that service is an SDLT Refunds initiative that allows property owners to reclaim overpaid stamp duty land tax, wrongly calculated at outset. It is offered in conjunction with a Chartered Tax Specialist who deal directly with HMRC on the clients behalf and do so on a no win no fee basis.

“We have set up many structures which save clients £100,000’s of future income, capital gains tax and IHT taxes but we don’t like to use the word success as those savings are not fully recognized until a loved one passes away. Rather than using the word success,

TRUST & FIDUCIARY SERVICES PHILOSOPHY

FAST FACTS

Soteria Trusts' solutions assist clients to manage, grow and protect their valuable assets within their lifetime and to create a tax efficient legacy for their beneficiaries

•

• • •

•

Save hundreds of thousands and in many cases millions in future estate related taxes Protect assets from Creditors No Probate following death Increase awareness - Income or Corporation Tax, Capital Gains Tax, Inheritance Tax, Annual Tax on Enveloped Dwellings & Stamp Duty Receive thousands back in overpaid Stamp Duty

Opposite Page: Wendy Clarke, Senior Business Development Executive at Soteria Trusts This page: (1) Inheritance Tax planning is crucial to save money; (2) Legacy planning and asset protection for your family

we much prefer succession as that is exactly what we are doing – succession planning,” Clarke explained.

Another factor that makes Soteria distinct is its core values that are deep-seated in each team member. Most of its employees have been working together for more than a decade. Their working environment has been laid down to have genuine care and compassion for their clients. By using their skill, dexterity and knowledge, Soteria employees are able to improve their clients financial positions.

Before the global health crisis began, Soteria conducted business through an extensive network of professionals, introducers as well as face-to-face activities. One of the biggest challenges they perceived, Clarke shared, is that clients often discount the future in favour of the present. People focus on their present issues especially their financial situation . As a firm living up to its philosophy, the company focuses on the future with how to protect and grow the client's assets.

“COVID-19 has meant a slowdown in the number of new clients since we haven’t been able to meet face-to-face and host events, etc. There has been a general tightening of the belt and more of a

focus on austerity. We believe this is not going to be temporary in nature and that the general reprogramming of doing business that we are all passing through will lead to even savvier clients looking to protect theirs and their family’s assets base and with it their futures,”Clarke said.

Like every industry player, the company tries to adapt into the new normal, increasing its online events and most importantly boosting their reach through referrals from existing clients.

Expansion plans in 2021 Currently, Soteria Trusts headquarters is in Hong Kong, the third largest financial services center after London and New York. While it is a Special Administrative Region (SAR) of Mainland China, Hong Kong law is based on a British Common Law structure and its courts apply the rule of law, making it one of those that have modern Trust laws in the world.

And surprisingly, Clarke revealed that Soteria Trust only has six people in their HQ. Clarke said the firm envisions their team to gradually grow in 2021.

HONG KONG BUSINESS ANNUAL 2021 41

STANDARD CHARTERED BANK

ALWAYS STRIVING FOR EXCELLENCE

H

ong Kong has been through a tough year with the social unrest, geopolitics, and the pandemic. The pandemic has also brought great uncertainties in multiple industries, especially in the banking sector.

Amidst the uncertainties, Standard Chartered Bank had to make prompt decisions and do what is best for the health and safety of their staff and clients. “The challenge for us leaders was how can we provide a more flexible working arrangement that supports our employees’ needs based on their individual circumstances,” said Mary Huen, CEO, Hong Kong, Standard Chartered. “As a bank committed to be ‘Here for good’, we believe it is our responsibility to support our clients as well as the community,” she added, as the bank has also helped assist people and many local businesses struggling to make it against the challenging backdrop.

For this, the bank was named as the Bank of the Year for 2020. In an interview with Hong Kong Business, Huen shares how the bank was able to thrive as they conquered the challenges brought upon by the crises.

Response to the pandemic These unprecedented times ask for robust scenario planning from leaders, allowing them to respond regardless of the situation.

“During these exceptional times, we all need to demonstrate exceptional leadership. To do this requires a mix of core leadership

42 HONG KONG BUSINESS ANNUAL 2021

skills and human skills,” said Huen, noting three main points that leaders should consider in their pandemic response— Always Be Crisis-ready (ABC), empathy for people and staff, and institutionalising a mindset of continuous improvement and learning.

Standard Chartered Bank Hong Kong showed that they were able to do these as their crisis management team, along with various business and supporting teams, worked tirelessly to monitor the situation closely, provide timely reports and implemented precautionary measures and contact tracing to ensure the safety of the workplace and that critical operations and frontline staff felt protected.

Beyond supporting their employees, Standard Chartered Bank Hong Kong also rolled out various relief measures to help individuals, small and medium-sized enterprises (SME), and corporate clients.

These measures included mortgage principal payment holiday, principal moratorium, trade finance loan extension, relief cash loans for eligible applicants, fee waivers for credit card late payments and local fund transfers.

Furthermore, they supported corporate and multinational clients in their digital transition so they could quickly adapt and continue servicing their stakeholders.

“We’ve always been working actively on building our social capital. This ties back to our brand promise ‘Here for good’,” said Huen.

BANK OF THE YEAR PHILOSOPHY

FAST FACTS

“Standard Chartered Bank is committed to promoting economic and social development in the markets they serve, doing so sustainably and equitably in line with their purpose and three valued behaviours: ‘Never settle’, ‘Better together’ and ‘Do the right thing.”

• The history of Standard Chartered in Hong Kong dates back to 1859 • It is one of the city’s three noteissuing banks and serves as one of the three rotating Chairman Banks of the Hong Kong Association of Banks • The bank provides a wide range of banking services to retail and corporate clients, and has over 70 branches and over 200 ATMs across Hong Kong • Standard Chartered Hong Kong is the largest profit contributor to the Group • Mox, its majority-owned virtual bank, launched in 2020 • Standard Chartered PLC is listed on the London and Hong Kong stock exchanges

This page: 1) QR Cash Cardless Withdrawal; 2) The Mox team; 3) Hong Kong management team showing their support for Standard Chartered Group’s COVID-19 Global Charitable Fund Opposite page: The University of Hong Kong – Standard Chartered Foundation FinTech Academy Plaque Unveiling Ceremony The bank gave back to the community as they donated personal protective equipment (PPE) and cleaning supplies for 100,000 underprivileged families and donated HK$40m to help subsidise rent for families living in subdivided units.

Globally, Standard Chartered Bank launched a COVID-19 relief fund to support emergency relief and economic recovery in the most disadvantaged communities, as well as provide financing for corporates providing goods and services to fight COVID-19.

Investing in a digital future The COVID-19 pandemic was more than a health crisis—it is also a game changer, accelerating digital adoption across all industries.

Standard Chartered Bank Hong Kong clearly plans to stay ahead of the game. The bank secured a virtual bank license in 2019 and recently launched its virtual bank, Mox, to drive financial inclusion and innovation, as well as deliver a different experience to a new pool of digital-savvy clients.

Standard Chartered Bank Hong Kong is also the first bank to roll out “QR Cash” in early 2019, where clients can withdraw cash from ATMs by scanning a QR code with their mobile phone. The absence of the need for a traditional physical card proved to be very useful especially during the pandemic where clients prefer to use contactless payments and facilities.

The bank also introduced My RM, which allows clients to connect

with their relationship managers remotely, and made online mutual fund sales available on the mobile banking app. Further, it quickly scaled up VPN capacity to enable more than half of its staff to work and collaborate remotely and continue providing quality service to clients.

Because of these, Standard Chartered Bank Hong Kong was able to deploy the necessary tools to provide clients access to their services amidst the pandemic whilst reducing face-to-face transactions at their branches.

Standard Chartered Bank Hong Kong also partnered with University of Hong Kong and launched Fintech Academy to boost fintech research and innovation in Hong Kong.

Resilience amidst crisis The pandemic made the bank realise how important it is to build teams that are agile, resilient and collaborative. Hong Kong has gone through ups and downs over the years, but it has shown tremendous resilience and emerged stronger each time. Huen is confident that, despite the short-term uncertainties, Hong Kong will continue to be a great place for doing business and a competitive international financial centre.

“To stay relevant post-COVID, we need to step up, continue to innovate and pick up 21st century skills, and these include the ability to engage remote teams, handle uncertainty, and build a learning culture,” concludes Huen.

HONG KONG BUSINESS ANNUAL 2021 43

TOGHER GROUP

PROPERTY INVESTMENT YIELDS TO EARN CASTLE KEYS

T

he crown jewel to any diversified investment portfolio is property and this is not a surprise to Hong Kong and Asian investors.

Whether it is a specific goal, such as education, immigration or a long-term investment, sophisticated investors recognize the importance and safety inherent in diversification that includes overseas properties.

Overseas property investments, however, come with risks unlike that of buying in one’s home country. Firstly, identifying the opportunity then navigating the regulatory hurdles and sourcing funding an investment is daunting. An advisor or partner with the utmost knowledge and experience will reduce these risks and needs for hands on management. The Togher Group (Maycor Developments), whose industry experience and expertise spans over two decades are the ideal team here in Hong Kong. Their experience and expertise has seen successful delivery of projects in residential, commercial, and hotel construction and management worldwide, including locally the Hong Kong International Airport, MTR projects, and most recently the East & West Kowloon cultural districts. As a result of the many worldwide industry, social and government contacts, the Togher Group (Maycor Developments) has cultivated their overseas property investment arm, springing forth from the increasing demand in Hong Kong and Asia for investment grade overseas property opportunities.

“We work in partnership with land owners and investment funds to deliver mixed and single use schemes throughout Ireland and the U.K.

44 HONG KONG BUSINESS ANNUAL 2021

We operate strategically with our dedicated team of surveyors, town planners, and construction professionals able to advise upon, manage and deliver developments at all stages from acquisition through to development completion. Our development expertise enables us to maximize the value of the site that we acquire and option-including securing funding from investors, partners and commercial institutions,” says Steve Togher, managing director of Togher Group (Maycor Developments).

“Ireland is fresh and vibrant—the healthiest place in the world. We have world-leading education and health care resources. It is the only remaining English-speaking country in the EU allowing those who obtain residence to be able to travel freely both to the EU and the UK. This country of lush green rolling hills is the EU headquarters for many global corporations with giants like Google, Apple, Facebook, and Pfizer topping the list,” he continues.

On one hand, the growing presence of global enterprises choosing Ireland as a base is creating a demand at all levels from corporate facilities to housing and commercial sites. On the other hand, the Government of Ireland is mandated through the current planning cycle to provide increases in public housing and other facilities to a level that a funding gap arises.

Leveraging their vast connections, experience and comprehensive expertise, the Togher Group (Maycor Developments) is taking the lead on opportunities that deliver high yields to investors and assisting in

OVERSEAS PROPERTY INVESTMENT PHILOSOPHY

FAST FACTS

To ensure our client’s projects are staffed with outstanding capability, exceptional quality of workmanship and the highest possible levels of health and safety compliance at all times.

• The Togher Group is a dedicated recruitment and construction services business today, driven to make a substantial positive impact to the construction industry.

• In the past year, the company has grown with subsidiary companies opening in Hong Kong, Ireland and UK, employing over 100 staff and sub-contracted workers.

• Its Managing Director, Steve Togher set up his own business in Hong Kong to primarily focus on construction and recruitment services, working on high profile projects such as Hong Kong International Airport, MTR projects and East & West Kowloon cultural districts.

This page: Island properties. Opposite Page: Stephen Togher, Managing Director of Togher Group the development of Ireland. The group is supported by the Government of Ireland and various County Councils as they were granted 25-year leases tied to property investment and development of opportunities to present themselves to investors.

“Certainly, the advantages of immigration linked property investments are there, but one should not miss out on the investment itself,” affirms Steve. “A single house purchase can be secured for €200-300K per house and rented out for high rental yield. We are focused on delivering to our investors a secure and highly favourable annual yield.”

On a larger scale, the Togher Group (Maycor Developments) has recently purchased a site for the purpose of constructing a turnkey nursing home for €6.6 million with the objective of a leasing for 25 years to a healthcare provider. Steve anticipates an annual yield of €650,000.

The philosophy of the Togher Group (Maycor Developments) of participating and offering their clients a safer and higher yielding investment are core to their corporate objectives.

“We have a commitment to our clients; that every property we propose is one that we believe in. We have a team of investment managers and researchers who conduct thorough due diligence on the developer, the development itself and the market in which it is being built. We financially commit to only those we believe will deliver strong results and in return give priority access to the best global property investment opportunities for our client,” adds Steve.

The worldwide teams of experts of Togher Group (Maycor Developments) are based in offices in Hong Kong, Dublin, and London.

With expertise in all aspects of project and investment delivery, the Togher Group (Maycor Developments) provides all solutions required by partners and investors. Not only has Togher Group (Maycor Developments) often acted as a main contractor, they have also assisted

with comprehensive solutions to financial management, facilities management, and tenant management. The team of solicitors and investment advisors of Togher Group (Maycor Developments) has paved the way for investors, smoothing bumps and eliminating hurdles to partner investors in managing their investment every step of the way through to exit.

The foundation of Togher Group’s core values are building longterm relationships, trust, and a total commitment to clients, partners, and investors. These core beliefs are carried into their CSR activities in the spirit of giving back to the communities and industry in which they operate. Charities such as Darkness into Light in Ireland, KELY group, The Samaritans Befrienders, MindHK, and The Lighthouse club Hong Kong are supported regularly by Togher Group (Maycor Developments).

Overseas property investments with the Togher Group (Maycor Developments) attract an eclectic mix of investors and partners that range from the individual with immigration or education tie-ins to those that aspire to have that dream castle, literally. The Togher Group (Maycor Developments) is soon to fulfil a client spec that includes a castle with surrounding property to construct a hotel as well as residential/commercial units with a golf course designed by the investor—a truly aspirational investment. Should all go to plan, the yield would be equivalent to getting the golf course and castle for free!

“Development delivery from conception to completion” the hallmark of the Togher Group (Maycor Developments). For continuing excellence in Overseas Property Investment the Togher Group (Maycor Developments) wins the Hong Kong Business Magazine High Flyer Award for 2020.

HONG KONG BUSINESS ANNUAL 2021 45

YESSTYLE

DRIVING THE ASIAN BEAUTY BOOM THROUGH E-COMMERCE

S

ince it was established in 2006, YesStyle.com has been the leading online retailer for Asian brands worldwide.

YesStyle is the first online retailer to globally distribute a wide range of Asian fashion and beauty products, and its sophisticated e-commerce platform is trusted by millions of clients around the world.

“Whilst many ecommerce companies in Hong Kong serve customers locally, YesStyle specialises in marketing and selling fashion and beauty products to customers globally. Most of our customers are located in overseas countries such as the USA, UK, Australia, Canada, France, Germany and Spain,” said Joshua Lau, Founder and CEO of YesStyle.com.

Unique platform, peerless service Over the past decade, YesStyle has been an invaluable partner for a great number of premium beauty brands. The platform promotes quality products from brands including COSRX, PURITO, MIZON, SOME BY MI, chuu and Dear Klairs, among others. At present, it is an authorised retailer of over 250 Korean cosmetic brands.

“A big proportion of our customers are typically into Asian beauty, especially Korean beauty products; whilst others are interested in trendy fashion items, for example, outfits inspired by K-pop artists.

Our customers come from all around the world. 93% of our customers are female, and over 70% of them are Millennials and Gen Z consumers” Lau explained.

46 HONG KONG BUSINESS ANNUAL 2021

YesStyle’s offerings are not limited to beauty and cosmetic products. The platform features a wide selection of everything from beauty products, to casual or chic fashion for women and men, to home accessories, decorations, gadgets, lifestyle items, outdoor equipment, travel goods, pet supplies and more.

A key driver behind YesStyle’s success is its innovative way of bringing new products to its customers. For instance, it launched the first K-Beauty advent calendar three years ago, capitalising on the success of similar products in the West. Beauty advent calendars have been a trend in the U.S. and Europe for quite some time, but the trend has never really reached Asian companies before YesStyle.com made it available on its platform.

“Back in 2018, we saw the opportunity to leverage our presence as our customers’ go-to retailer for K-beauty products and the fact that most of them are from the US and Europe, and launched the first ever multi-brand advent calendar that was fully dedicated to K-beauty products on the market,” Lau shared.

“Our advent calendar was immediately very well-received among not just our customers, but also our brand partners. Many of them find the idea very novel since they have not seen anything similar in South Korea before. We launched the K-beauty advent calendar with the purposes of strengthening our image as a beauty retailer, to attract more traffic, and to give more exposure to the products of our brand partners in the international market through KOL and

E COMMERCE - RETAIL PHILOSOPHY

FAST FACTS

YesStyle encourages a customer-centric culture emphasizing respect, dignity, teamwork, innovation, and high-quality work. Coupled with our efforts in people development, these values have created a motivating and dynamic working environment for our employees.

• • • • • • •

• •

• • •

1998 – AsiaCD.com was launched 2000 - AsiaCD.com was changed to YesAsia.com 2006 - YesStyle.com was launched 2010 - The YesStylist Blog was launched 2013 - YesStyle’s Facebook page hit 1 million likes 2014 - The YesStyle iOS & Android apps were launched 2014 - YesStyle has been recognized as a "Caring Company 2014/19" by the Hong Kong Council of Social Service 2018 - The YesStyle Friends Reward Program was launched 2018 - YesStyle launched the first ever multi-brand Korean beauty advent calendar 2019 – Number of YesStyle app downloads reached 3 million 2019 - The YesStyle Influencer Program was launched 2020 - YesStyle’s Instagram page hit 1 million followers

Top Left: Employee feedback is addressed to create a harmonious working environment.

Top Right & bottom: YesStyle CEO, Joshua Lau, presenting the K-beauty boxes, advent calendar, and INSSAKIT. influencer videos - and I think we have been successful in realising its purpose,” he added.

YesStyle also prides itself for offering prompt and reliable customer service. To better serve customers in non-English-speaking markets, YesStyle has been adding additional languages since 2018, and currently supports French, German, Spanish, Japanese and Chinese.

It also works with a number of logistics companies to offer various shipment options to its clients. It offers express or standard shipment to most countries through trusted couriers such as FedEx, DHL and Hong Kong Post.

To keep up with changing consumer trends, the company continues to enhance and refine its shopping platform. In 2014, the company launched the YesStyle iOS and Android mobile apps. By the end of 2019, customers had visited YesStyle.com over 99,000,000 times, whilst the apps have accumulated more than 3,000,000 downloads. As of 2019, YesStyle has over 900,000 active customers, a growth of over 40% compared to the previous year.

YesStyle also constantly engages its users across a variety of social media platforms. Its Instagram account and Facebook page now have over 1 million followers each, and it also works with various influencers to boost its online presence. In 2019, the company launched the YesStyle Influencer Program and has since recruited over 50,000 social media influencers.

“The YesStyle Influencer Program is one of our key highlights

and achievements in the past year. Through joining the program, influencers gain benefits in forms of commissions, free products and opportunities to grow their channels by hosting giveaways; whilst YesStyle’s brand partners can also leverage our network to amass a great deal of product reviews and user-generated content from influencers around the world, thus gaining exposure,” Lau said.

A visionary leadership Over the years, YesAsia.com has received numerous accolades for its popularity and superior customer service. In 2000, YesAsia.com successfully raised $93m (US$12m) in venture capital financing from three institutional investors: PCCW, Walden International, and Morgan Stanley.

In July 2006, YesAsia.com launched its sister website, YesStyle.com.

YesStyle brought the proven e-commerce platform and technology of its sister website to deliver beauty products and fashion from Asia to a worldwide audience.

“People are our most important asset. We welcome candidates from various backgrounds and cultures to join us,” Lau said.

The company has over 500 employees stationed in its Hong Kong, Seoul and Tokyo offices.

In the future, YesStyle aims to maintain its competitive edge by providing the perfect customer experience and building strategic alliances with premium brands.

HONG KONG BUSINESS ANNUAL 2021 47

Index 2021 OUTLOOK Economic recovery or recession in 2021 hinges on border reopening

4

Property market to slowly recover in 2021

6

Pandemic unveils new ways of working

8

Buyers seek immersive retail experiences

10

Hong Kong’s legal sector faces tougher competition from Chinese law firms

12

HONG KONG’S HIGH FLYERS Outstanding Enterprises 2020

Archikris Design Group (Interior Design)

18

BOC Life (Outstanding Insurance Company)

20

Elite Concepts (Innovative F&B Concepts)

24

FIL Investment Ltd (Financial Services)

26

Guerlain (Digital – Beauty and Cosmetics)

28

Hang Seng Bank (Commercial Bank)

30

HKBN Enterprise Solutions (Best Network, Broadband, Cloud and ICT Provider)

32

Lan Kwai Fong Group (Entertainment)

34

Mayer & Associes (Law Firm)

36

Prime Credit Ltd (Outstanding Finance Company)

38

Soteria Trusts (Trust and Fiduciary Services)

40

Standard Chartered Bank (Bank of the Year)

42

Togher Group (Overseas Property Investments)

44

Yesstyle.com.Ltd (E-Commerce – Retail)

46

48 HONG KONG BUSINESS ANNUAL 2021

Avocats

Hong Kong-based French Lawyers since 1995 Our main focus Mayer & AssociĂŠs specializes in the economic migration of companies from Europe to the Asia Pacific, particularly China, and from the Asia Pacific to Europe, particularly France.

Our firm also provides expert legal advice to both corporations and individuals across a variety of dedicated practice areas.

Our values Integrity, good governance, a responsible attitude, and a relationship with clients built on trust without compromising our independence are the values that guide us in all our actions.

Creativity Our experience and our values allow us to provide quality independent legal advice in cases which are sometimes complex and require inventiveness. We are resourceful in finding legal solutions for our clients involved in cross border transactions.

17/F., KINWICK CENTRE,32 HOLLYWOOD ROAD, HONG KONG • (852) 3710 5000

YE