Reborn as a tycoon in Hong Kong

In the study.

After Lin Shufang left the study, Lin Baicheng stayed in the study and took out Cheng Yufeng's annual report and started reading the statistics.

Lin Baicheng spent a total of 148.2 million Hong Kong dollars to complete the wholly-owned acquisition of Qingzhou Yingni Company and delisted it.

The acquisition and delisting of Qingzhou Yingni Company by Lin Baicheng did not affect the company's business. The replacement of management also did not affect the company's business. The company is still the largest cement company in Hong Kong.

Jinzhou Yingni Company's revenue in 1978 was as high as 114 million Hong Kong dollars, but its profit was only a little more than 15%, and its net profit was only nearly 15 million Hong Kong dollars. There is no way, the profit of the cement industry itself is not high. Qingzhou Yingni still relies on the blessing of the largest cement company in Hong Kong. The cost is relatively lower, so the profit will be a little higher.

Furthermore, with the recovery and development of the real estate industry, the cement industry will naturally benefit, so in 1978 there was a net profit of nearly 15 million Hong Kong dollars.

After being acquired by Lin Baicheng, the Jinzhou Yingni Company has 240,000 square feet less industrial land in Hung Hom than before. This was the original transaction with Li Jiacheng. Relatively speaking, the company's potential has been reduced a lot. After all, in Hong Kong The more land a company has, the greater its development potential.

However, there was nothing that could be done about it. If Lin Baicheng had not cooperated with Li Jiacheng, there was a question mark as to whether he could acquire the Qingzhou Yingni Company. Compared with the company that cannot be acquired, the shrinking Qingzhou Yingni Company is not unacceptable.

Regarding the cement business of Qingzhou Yingni Company, Lin Baicheng has a greater ambition, which is to monopolize the cement business in Xiangjiang. Although Qingzhou Yingni Company is the largest cement company in Hong Kong, there are still several companies making cement, so it is not without competitors.

In 1979, the cement of Jinzhou Yingni Company will be sold at a reduced price, squeezing the profit margins of competitors, and making less money in the short term is completely acceptable.

As for the land in Hung Hom in Yingzhou, it will not be developed for the time being because there is not enough time. If we choose to change the industrial land to commercial land now, the price difference we have to pay to the Hong Kong government will be too much. Wait a few years, when land prices in Hong Kong plummet due to Sino-British negotiations, and it will not be too late to apply to the Hong Kong government to change the land use attributes. Then the money spent will be much less.

After the properties of the land in Hung Hom are changed and developed, Lin Baicheng will list the Qingzhou Yingni Company again, taking advantage of the company's promising prospects to go public and make money.

Lin Baicheng never thought about holding an unimportant company like Qingzhou Yingni as a sole proprietor. It would be a better choice to go public to make money and cash out large sums of money to develop in other industries.

In general, before the land in the hands of Qingzhou Yingni Company changes its land use, this company will not be able to provide Lin Baicheng with too many benefits, so he will not pay too much attention to this company.

Since Qingzhou Yingni Company wants to monopolize the cement business in Xiangjiang, it must sell cement at a low price. Then the company's revenue and profits will definitely not be much before it achieves this goal. Lin Baicheng cannot even think about this company providing him with funds. Fortunately, there is no need for him to provide funds to support the company's development.

After reading the annual report of Qingzhou Yingni Company, Lin Baicheng then looked at the annual report performance of Hong Kong Electric Group.

Hong Kong Electric Group, this company has a total of 1.31 billion shares, Lin Baicheng holds 510 million shares, accounting for a little more than 38.93% of the total share capital, and spent a total of 1.75 billion Hong Kong dollars on Lin Baicheng.

After taking control of the Hong Kong Electric Group, Lin Baicheng did not increase his stake in the Hong Kong Electric Group, because the shareholding ratio of 38.93% was enough to complete the control of the Hong Kong Electric Group. If someone wants to compete with him, he must buy a large amount of stocks from the stock market. This will cause the stock price to continue to rise. Even if he buys slowly, it will attract his attention.

If this happens, Lin Baicheng doesn't have to worry at all. As long as he purchases about 10% of the shares, he can ensure that no one can threaten his control of Hong Kong Electric Group. However, the other party wanted to acquire about 49% of the shares before he completed the 10% increase in shares. Based on the current stock price of HK Electric Group, it would cost more than HK$3 billion in cash.

This is still the current stock price of HK Electric Group. Large-scale buying will definitely cause the stock price of HK Electric Group to skyrocket. Therefore, if someone really competes with Lin Baicheng for control, even HK$5 billion in funds may not be enough.

As of yesterday Friday, HK Electric's share price closed at HK$4.84, with a total market value of about HK$6.34 billion.

Lin Baicheng's acquisition of HK Electric Group did not cause the stock price of HK Electric Group to skyrocket. However, because HK Electric Group issued additional shares and obtained HK$814 million in cash, it was a great benefit to HK Electric Group itself, so the company's stock price rose by a Big fluctuations are normal, after all, all shareholders have benefited.

Lin Baicheng's entry into HK Electric has had a considerable impact on the HK Electric Group. First of all, the biggest impact is that the company has received 814 million Hong Kong dollars in development funds. In addition to using this money to build larger-scale power plants, the HK Electric Group has also It has also been used to replace old wires in some areas and increase investment in the real estate industry.

However, these have no impact on the performance of the Hong Kong Electric Group in 1978. The performance of the Hong Kong Electric Group in 1978 should be what it is.

The reason is very simple. The construction of the power plant was not completed so quickly, and there was only investment in the early stage but no income; for the replacement of old wires, Lin Baicheng requested that electricity rates not be increased in 1978, so the electricity rates in these areas did not increase this year; as for investment in real estate, more It is impossible to see benefits in two or three months.

Lam Baicheng joined the HK Electric Group in mid-to-late September and could not affect the performance of the HK Electric Group in 1978. However, the performance in 1979 will definitely be significantly improved compared to 1978. Whether it is the increase in electricity prices in some areas or the income from real estate investment, the company's revenue and profits will increase.

According to statistics, the Hong Kong Electric Group's net profit in 1978 was HK$230 million, an increase of 15% year-on-year. This was mainly due to the accelerated economic recovery in Hong Kong and the increase in the number of factories under construction. The Hong Kong Electric Group, which is engaged in power generation, naturally benefited.

Regardless of the fact that the annual net profit of HK Electric Group was HK$230 million, the market value before Lin Baicheng's acquisition was nearly HK$5 billion, which seems to be a very high price-to-earnings ratio of more than 20 times. In fact, this is not the case. HK Electric Group is an asset-heavy company. The company's own assets are more than one billion Hong Kong dollars. Coupled with its leading position, it is normal to have a higher price-to-earnings ratio, which shows that the market is optimistic about it.

The capital market is of course optimistic about Hong Kong Electric Group. The power business is a public utility, which is used by households and factories. It is a company that guarantees profits and does not lose money. There are basically no risks. If there are risks, they are unexpected risks, such as explosions in power plants. Such accidents.

The current total market value of HK Electric Group exceeds HK$6 billion. Lin Baicheng’s attitude towards this company is definitely different from that of Qingzhou Yingni Company. He will continue to strengthen his control over the management of HK Electric Group and at the same time lead HK Electric Group to increase its Investment in the real estate industry continues to grow the Hong Kong Electric Group.

Finally, there is Hutchison Whampoa. As of yesterday, Hutchison Whampoa's closing price was HK$63.35, and its total market value exceeded HK$25 billion.

The international gold price has risen to nearly 240 US dollars per ounce. It stands to reason that Hutchison Whampoa's stock price should rise again, and even hit the previous high of 70 Hong Kong dollars. However, Hutchison Whampoa's stock price has not risen much and has been fluctuating recently. .

The reason for this is because Lin Baicheng's offshore company has been slowly selling off the Hutchison Whampoa stocks, which has suppressed Hutchison Whampoa's stock price in a disguised manner. Unless Hutchison Whampoa has a super positive event, the stock price will It’s hard to go higher.

Hutchison Whampoa was acquired by Lin Baicheng in early 1978. Now he holds 199.6 million shares, accounting for 49.9% of the total share capital. For this, he spent a total of 1.50236 billion Hong Kong dollars, which is about 1.5 billion Hong Kong dollars.

However, Lin Baicheng used Hutchison Whampoa's funds to do long gold futures. Later, because of the profit of 1.8 billion Hong Kong dollars, Hutchison Whampoa made a huge dividend and paid 600 million Hong Kong dollars in dividends to shareholders. Lin Baicheng, who held 49.9% of the shares, received 299.4 million Hong Kong dollars, nearly 300 million Hong Kong dollars in funds.

There is no need to pay tax on the HK$300 million in dividends. In other words, Lin Baicheng’s real investment in Hutchison Whampoa is HK$1.2 billion plus more than 2 million. Of this huge investment, more than HK$2 million is basically can be ignored.

Today, the total market value of Hutchison Whampoa is HK$25.34 billion. Judging from the books, Lin Baicheng's investment has increased a little more than ten times, and it has only been about a year, which shows how high the rate of return is.

If you switch to other shareholders, even ordinary shareholders, as long as Lin Baicheng did not sell his shares after taking over Hutchison Whampoa, the stock price of less than HK$7 at that time has become the current stock price of HK$63.35, which is almost a tenfold increase. times, everyone earns about the same amount.

However, it can be said that Hutchison Whampoa's stock price fluctuated violently many times in 1978. There are basically no investors who can really hold the stock without moving since Lin Baicheng took over Hutchison Whampoa. Severe fluctuations will definitely make A large number of investors sell their stocks at a certain price, and few people will make ten times their long-term investment.

The reason why it is said that there are very few rather than none is because there is a kind of person who does not look at stocks for several years after buying them. Although there are very few such people, the possibility exists. There really is such a person. If so, then his investment would have increased about ten times.

Talking back to Hutchison Whampoa, before Lin Baicheng took over, Hutchison Whampoa's net assets were about HK$7.8 billion. Later, Lin Baicheng used Hutchison Whampoa's funds to do long gold futures, and used the company's funds to buy back when Hutchison Whampoa was shorted. The combined profits from the two stock purchases made the company's net assets exceed HK$3.5 billion.

After that, the British-owned families in Hong Kong worked together to short Hutchison Whampoa. Lin Baicheng once again asked Hutchison Whampoa to buy back shares, making a huge profit, and Hutchison Whampoa's net assets increased again, reaching as much as 4.8 billion Hong Kong dollars, a distance of 50 The net worth of HK$100 million is not much different.

Of course, the net assets calculated here do not include Hutchison Whampoa’s long investment in gold futures, because the investment here has not yet been settled, and it is difficult to calculate the amount of assets. It may be a profit this month, but it will become a loss next month, and it will not make much sense to calculate it into the net assets.

Speaking of which, Hutchison Whampoa's debt is not low, reaching more than HK$4 billion. Among them, HK$500 million in loans are for long gold futures, HK$2.62 billion is for property investment, and the remaining HK$1 billion is for loan needs in real estate, retail and other businesses.

Especially in the real estate business, it is impossible to use Hutchison Whampoa's own funds for real estate development. It will definitely need to find banks for financing. Otherwise, Hutchison Whampoa will not be able to develop much land with its strength.

Although Hutchison Whampoa has to pay a lot of interest every month due to the large number of loans, as long as land prices in Xiangjiang are rising, the current investment will be earned back several times in the future.

Not counting the huge income from gold futures brought by Lin Baicheng to Hutchison Whampoa, Hutchison Whampoa completed the downsizing and streamlining of the group company in 1978 due to the sale of a large number of loss-making or less profitable companies. The company's net profit in 1978 The profit was HK$240 million.

In real terms, Hutchison Whampoa's profits in 1978 were of course very large, reaching HK$3 billion, but this would mean that the company would have to pay too much tax this year, plus the company's business in real estate and retail The two industries invested heavily, so the company's book profit after accounting was HK$240 million, more than double last year's profit of just over HK$100 million.

Of course, corporate income tax is also related to the company's revenue. Therefore, even if Hutchison Whampoa's profit in 1978 was only HK$240 million, the tax it had to pay was not much at all. Fortunately, all those who can avoid taxation and do accounting within the rules have done so. They have paid as little tax as possible, and the remaining tax to be paid is unavoidable.

Lin Baicheng didn't need to worry about the tax issue. He believed that the company's management and the professional accounting firm would do a good job and wouldn't let Lin Baicheng waste his money anyway.

"Hutchison Whampoa's stock price will definitely rise again in 1979, and it will rise sharply again in early 1980. At that time, I should also reduce my holdings of some shares. I will reduce my holdings at a high level and cash out a large amount of funds. After the stock price drops to a certain level, Then buy it back. This not only gives me a lot of cash to use, but also makes a lot of money, so why not.”

After reading the annual report, Lin Baicheng couldn't help but thought to himself. This kind of matter involves the prediction of the high international gold price, so Lin Baicheng cannot discuss with others how many shares he should reduce at that time, but he has to think carefully about it.

However, there is still more than a year left before the international gold price reaches its peak in early 1980, so Lin Baicheng does not need to make a decision in a hurry yet. He has almost a year to think about it slowly.

Lin Baicheng even had the idea that when he finished reducing his stock holdings, he could ask Hutchison Whampoa to issue additional shares and withdraw the funds at a high level as the company's development funds. This is his general idea. Whether it will work specifically and how to do it will require consultation with professionals.

Anyway, the idea is that when Hutchison Whampoa's stock price rises sharply along with the international gold price, he will try his best to find ways to get more benefits for himself and Hutchison Whampoa.