Financial News
Written by: Kwong Yueting
2020-11-13 11:40
Last update date: 2020-11-13 11:51
Feng Guolun, vice chairman of the Fung Group, attended the "Ten-like Dialogue" forum organized by Esquel Group, and said that the new crown pneumonia epidemic and Sino-US economic and trade frictions have changed the global supply chain.
In the early stage of the epidemic, supply was unstable due to the closure of most factories in China. Fortunately, as the local epidemic eased, supply tensions have been reduced, and 90% of the supply in Asia has returned to before the epidemic.
However, due to a new wave of epidemics in Europe, America and other places, demand is unstable.
The Fung Group's business network is distributed in 50 countries around the world, and its business covers the global supply chain management of the entire global consumer goods market, including trade, logistics, distribution and retail.
Feng Guolun said that no matter in any economic environment, companies should not rely solely on one source of supply. They should make the supply chain more diversified and flexible. Even though this may not be the most cost-effective, it allows companies to cope with the economic prospects. The situation is clear.
Feng Guolun (bottom left) pointed out that because company employees have to travel on business from time to time, they can already access company documents remotely, so the epidemic has not had much impact on work.
(Screenshot of video conference)
Li & Fung, a subsidiary of Fung Group, was successfully privatized at the end of May this year.
Feng Guolun said frankly that listing companies can get more funds from the capital market for business expansion, but they must also do a good job in corporate governance (Corporate Governance), maintain transparency in company policies, and take care of different stakeholders, and there is greater external pressure.
As the economic environment continues to change, companies must also change their business models and governance concepts, but sometimes investors may not agree to major adjustments to the company's business methods, so they decide to privatize the company, but it may be listed again in the future.
Feng Guolun resigns as Chairman of Li & Fung from today and is succeeded by Feng Yujun
The Workers’ Union claims that Li & Fung has laid off more than 200 employees and more than 30 employees have complained about not receiving long-term service payments and payment in lieu of notice
Li & Fung delisted after 4pm today. Chairman Feng Guolun: Thank you shareholders for their 28 years of support
Li & Fung
