Ricky Wong, Vice Chairman and Group CEO of HK TECH VENTURE (01137.HK)  +0.010 (+0.617%)   , remarked after the shareholders' meeting today that engaging in retail business in Hong Kong is precarious in wake of highly unfavorable operating environment.

Costs such as rent, wage and inventory in Hong Kong are well above those in Mainland China, and Mainland competitors have a larger scale, making it relatively disadvantageous for Hong Kong peers.

The group needs to invest in new initiatives, Wong said, emphasizing that they will not venture into the food delivery business, as the Hong Kong food delivery market is unlikely profitable and lacks market value.

Wong expressed optimism about the long-term development of the wet markets in Hong Kong, as traditional retail like supermarkets is dominated by giants and wet markets have low digitalization, presenting a market gap.

The group is developing several new exploratory and technology businesses, including a fresh ingredient rapid delivery service. Unmanned stores are still in the technology development stage, and biotech is a long-term investment. Wong assumed that new initiatives will not hugely contribute to the group's profits in the next two to three years.

Wong clearly denied recent rumors of a sale of the company, stating that the group currently has no plans for privatization, introducing new shareholders, or business sales and buyback plans, saying shareholders should not harbor any illusions.
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