Strategic Management-Cheung Kong Holdings Limited
Cheung Kong holdings limited (CKH) is a real estate development and strategic investment company. The chairman of CKH is Lee Ka Shing (CKH, 2012). Cheung Kong Holdings is one of the largest developers of residential and hotel properties in Hong Kong. CHK actively developed in new business area like life science and other business. CKH has many investments in different countries around the world, policy changing will lead to an impact on the financial conditions, operations and growth of the business.
It increasingly exposed to different and changing political, social, legal and environmental requirements at the local or international level. For example, Hong Kong government set up a policy on restrictions of saleable area on the first-hand resident properties and the quality of buildings. Also, as accounting standards continue to develop, professional accounting body may issue more new regulations. CKH has many investments in China, CKH is required to adopt new accounting policies like tax systems and increase transparency of the company performance to investors.
It will have significant impact on the financial position or results of operations. Global economy remains highly uncertain because of the European debt crisis. There is depreciation or fluctuation of the currency as CKH has many subsidiaries and joint ventures receive revenue in different currencies, therefore it will affect the performances and threaten the global financial market. Also, instability in stock and commodity markets is showing recovery increasingly from the U. S. 2008 financial crisis, it leads to contractions of economic activities in emerging markets; it is why CKH business becomes more challenging.
Nowadays, birth rate and population growth start to decline, and people’s life expectancy has extended. In some developed countries like Hong Kong, aging population has become more serious. People start to have more concern about their health. Hence, CK Life Science continues to develop some products related to health care and environmental sustainability in order to improve the quality of life. In the past years, CK Life Science had acquisition with Sante Naturelle, which is a leading natural health company in Canada launched Adrien Gagnon selling natural source vitamins and supplements.
Recently, CK Life Science has acquired Challenger Wine Trust with the vineyards and related infrastructure assets in Australia and New Zealand in order to expand agriculture-related business and increase earnings. Society has more concerns about going green and recycling. Being environmentally friendly is a big deal for CKH as major property developers. CKH use lots of green measures in planning, design, material using and construction in order to achieve the goal of environmental protection, for example, use glazing windows to capture more natural lights and ventilation.
Besides, CKH hold some activities and talks to promote environmental awareness to every household managed by the CKH. CKH joins the Carbon Audit program to reduce the carbon emission in reducing pollution. “TrueBeam” system—the latest radiotherapy for treating cancer patients was funded by The Li Ka Shing Foundation (LKSF) and was announced in January 2012 by the Faculty of Medicine of The Chinese University of Hong Kong (CUHK).
With this advanced system in radiotherapy, it is believed that severely sick patients who has tumor in the pancreas, livers, spine and even the brain, can be provided with better radiotherapy because of this innovative technology in the health care industry. TrueBeam is being used in countries such as the United States and Europe. Researches have showed that not only it can shorten the treatment time but can also accurately target tumors in patients, which is an encouraging news for patients and their family and heartening in the medical field.
