Li Ka-Shing Dismisses Talk of Retirement

Li Ka-Shing Dismisses Talk of Retirement

Hong Kong Tycoon’s Flagship Company Gets Boost From Its European Expansion

CHESTER YUNG and TE-PING CHEN

Updated Feb. 28, 2014 7:09 a.m. ET

Li Ka-shing’s appearances are among Hong Kong’s most-watched events. Bloomberg News

HONG KONG—Hong Kong tycoon Li Ka-shing of conglomerate Hutchison Whampoa Ltd.0013.HK +0.86% said Friday he is still helming his corporate empire and has no plans to retire, despite increasing concerns about his health as he turns 86 later this year.

Speculation has been rife that Asia’s richest man might be preparing to formally pass the torch to his elder son, Victor Li, after the octogenarian failed to appear at two of his three regular media appearances last year.

His annual appearances during company earnings announcements are some of Hong Kong’s most widely watched media events, as Mr. Li—nicknamed “Superman” by the local press for his business acumen—holds court on issues ranging from politics to his investment in Facebook Inc. FB -0.70%

At Hutchison’s annual results briefing on Friday, Mr. Li told reporters that he had a gallstone removed last year, which had prevented him from making his appearances. He also revealed plans for a listing of Hutchison’s lucrative retail operations later this year, providing the first concrete details on the future of A.S. Watson & Co.

“I’m not considering retirement,” he said, adding that there are plenty of matters still requiring his attention. “The global investment environment is very complicated,” Mr. Li said.

Hutchison said its property sales in Hong Kong fell below target and development costs are on the rise in the wake of measures adopted to cool the city’s hot property market. Still, Mr. Li encouraged Hong Kong locals with the means and need to buy a home to do so. “In the long run, you have nothing to lose,” he said.

He also said the city’s youth shouldn’t complain about their inability to afford a home. “This is very common in Western countries, where many young people live in rental homes,” he said.

As the elder Mr. Li fielded media questions during Friday’s 90-minute briefing, his son Victor—who in 2012 took over controlling shares of the family trust—stayed relatively silent. People who know the family say Victor lacks some of his father’s charisma, but nonetheless has been a driving force behind many of Hutchison’s latest ventures, including an aggressive move into Europe through a number of asset acquisitions.

Thanks to the push, Hutchison’s operating profit from Europe for the first time surpassed combined profits from its Hong Kong base and mainland China. The ports-to-property conglomerate, with operations in 52 countries, said its 2013 net profit rose 20% to 31.11 billion Hong Kong dollars (US$4.01 billion) from a restated HK$25.90 billion a year earlier. Revenue rose 4% to HK$412.93 billion.

Operations in Europe accounted for 37% of total profit, exceeding the 35% portion for Hong Kong and China. By comparison, in 2008, Europe businesses accounted for just 12% of the company’s operating profit, while Hong Kong and China accounted for 45%.

Hutchison’s retail business, which include drugstores and supermarkets across Europe and parts of Asia, recorded a 14% rise in operating profit for the year to HK$11.77 billion, helped by new store openings in mainland China, as well as strong demand in Western Europe.

The elder Mr. Li said he intends to list A.S. Watson, his retail business, in two venues, one of which is Hong Kong, later this year. Last year, the company shelved plans to sell its ParknShop supermarket chain, which operates mainly in Hong Kong.

Hutchison and its parent company, Cheung Kong (Holdings) Ltd. 0001.HK -0.82% , have expanded in recent years by adding utility and telecom companies in Europe that are generating steady cash flow. Deals by Mr. Li’s companies in recent years include a US$1.7 billion takeover of Orange Austria in 2012 and the purchase of U.K.’s Northumbrian Water Group for US$4 billion in 2011.

The European expansion has come while Mr. Li has been disposing of some of his Hong Kong assets. In January, he raised US$3.11 billion from listing his Hong Kong electricity operations.

Cheung Kong also reported results on Friday, with 2013 net profit up 10% despite weaker Hong Kong property sales following efforts by the city’s government to curb the property boom. The developer has a 49.97% stake in Hutchison Whampoa.

Cheung Kong’s net profit rose to HK$35.26 billion from a restated HK$32.04 billion. Revenue rose 4% to HK$32.31 billion.

Also on Friday, Sun Hung Kai Properties Ltd. 0016.HK -2.77% announced half-year results, which illustrated the headwinds facing local developers. The Hong Kong property developer’s net profit for the six months ended December fell 16% from a year earlier to HK$19.03 billion, with property-sale profit dropping 12%.