Reborn as a tycoon in Hong Kong

The New Year passed unknowingly, and time came to February 1979.

In the first few days of February, the international gold price rose very impressively, exceeding the price of 250 US dollars per ounce, which can be said to be a good start.

After the international gold price exceeded 250 US dollars per ounce, it was in a state of shock. It no longer broke upward, and the room for downward decline was limited. The overall price fluctuated up and down around the price of 250 US dollars per ounce.

In this case, Lin Baicheng asked Yuan Tianfan and Xia Boyin to take Hutchison Whampoa's team to London, sell all Hutchison Whampoa's long gold futures orders above $250 per ounce, and conduct Settlement.

Hutchison Whampoa used US$150 million in principal financing and US$1.5 billion in capital to be long gold futures. The cost price was US$206.8 per ounce, and the final average selling price was US$251.13 per ounce.

After calculation, after deducting handling fees, Hutchison Whampoa's profit from financing US$1.5 billion was US$321.5 million.

US$321.5 million is not a profit that Hutchison Whampoa can get, and US$1.5 billion in financing interest will be deducted. Fortunately, it has been paid back several months ago. The remaining financing interest is calculated to be US$84.375 million, which is already That’s a quarter of Hutchison Whampoa’s profit this time.

It is easy to make a quarter of Hutchison Whampoa's profits without risk. It is no wonder that capital in Western countries likes to make money through financial means. It is really easy to make money, which is much better than the hard-working real industry.

After deducting US$84.375 million from US$321.5 million, US$237.125 million is left. This is not the final profit that Hutchison Whampoa can obtain, because taxes still need to be paid.

US$189.7 million, this is the final remaining profit of Hutchison Whampoa after deducting US$47.425 million in taxes.

Of the tax amount of $47.425 million, half of the tax can be avoided through investment, which is more than $20 million. These funds will be invested in Watsons' supermarket expansion. Of course, this is a tax shelter in the UK, so the funds can only be invested in the UK.

But no matter what, after the investment of more than 20 million US dollars in tax avoidance, it became Watson's assets, which is equivalent to the assets of Hutchison Whampoa. In other words, the more than 20 million US dollars can also be regarded as profits.

US$213.4125 million, this is Hutchison Whampoa's final profit this time, but US$23.7125 million of it is not cash.

After this settlement, Hutchison Whampoa no longer obtained financing from HSBC, so the principal of US$150 million had to be transferred away. In the end, Hutchison Whampoa had US$339.7 million in funds in its company account in London.

After Yuan Tianfan and Xia Boyin sold Hutchison Whampoa's long gold futures investment in London, Lin Baicheng asked Xia Boyin to stay in London temporarily, and at the same time put $200 million in the company's account in London. The remaining US$139.7 million was transferred back to Xiangjiang's company account.

Yuan Tianfan can return to Xiangjiang. Lin Baicheng's long gold futures in other places will not be sold at this time.

On the morning of Tuesday, February 6, Hutchison Whampoa announced its investment profits. The US$189.7 million converted into Hong Kong dollars was nearly 800 million Hong Kong dollars. The tax avoidance of more than 20 million US dollars is an investment to avoid tax, but tax avoidance is tax avoidance. When announcing profits to the outside world, it is difficult to calculate this part.

The stock market in Xiangjiang opened on Friday last week. On the first day of the new year, there was a small positive line rising by 1.67%. It can be said that the stock market gave investors a good start.

Yesterday, Hutchison Whampoa’s stock price rose by 1.73% because the international gold price rose above US$250 per ounce. Investors who knew that Hutchison Whampoa had gold futures investment, after seeing that Hutchison Whampoa’s investment made money, of course continued to buy Entered, and the stock price was pushed up.

If Lin Baicheng's offshore company hadn't taken advantage of the rising stock price to sell more shares and suppress the stock price, otherwise the increase would not have been as small as 1.73%.

Today, as Hutchison Whampoa announced an investment profit of HK$800 million, Hutchison Whampoa's stock price naturally surged upward. This is a good thing, after all, this is the profit that has fallen into Hutchison Whampoa's pocket. , will not disappear.

However, although Hutchison Whampoa's stock price rose a lot, it did not rise too much because offshore companies took advantage of the rising stock price to increase their efforts to sell stocks, so the increase was limited.

In the afternoon, Hutchison Whampoa held a board meeting.

Because of Guo Henian's connections in Malaysia, he asked his son Guo Kongchen to attend Hutchison Whampoa's board of directors instead of him. However, Lin Baicheng had communicated with him in advance about the topics of Hutchison Whampoa's board of directors meeting.

At this board meeting, Hutchison Whampoa passed a motion proposed by Lin Baicheng.

Hutchison Whampoa will entrust US$200 million to a third-party Wade Investment Company for investment operations. The investment time is one year, and the entrustment fee is a symbolic US$1, but Wade Investment will receive 10% of the profit as a management fee.

The so-called Wade Investment is actually a shell of Lin Baicheng's many offshore companies, which means that the funds are managed by Lin Baicheng's Golden Fleece Company.

The reason for doing this is because Hutchison Whampoa's gold futures investment is already known to everyone, so when the financing interest expires, the investment is transferred to Lin Baicheng's own company for operation, so there is no need to worry Specific investment details were leaked.

Furthermore, if the investment is handed over to Lin Baicheng's company, the offshore company will divide the principal into many parts for financing through channels of multiple different banks, and the financing interest will not be earned by HSBC.

Lin Baicheng is certainly dissatisfied with what HSBC has done. Although he will not fall out with HSBC, if possible, he does not want HSBC to make money from him.

Another advantage of handing over Hutchison Whampoa's funds to Lin Baicheng's third-party company for operation is that Lin Baicheng can receive a benefit fee, and at the same time, he can also make his company earn more through accounting.

Of course, this kind of thing must not go too far, so Lin Baicheng only takes 10% of the profit as compensation. At the same time, he has not yet decided whether to make additional accounts. Everything will be settled after the investment profits are made.

Hutchison Whampoa is now firmly in control of Lam Baicheng, so his motion passed unanimously.

Lin Baicheng's repeated successes have brought huge investment profits to Hutchison Whampoa. Therefore, before his success is broken, the directors will not object to his proposals as long as they are not too outrageous, because objections have no meaning. It's better to go with the flow.

After Hutchison Whampoa's board of directors ended, the company released the resolution passed by the board of directors. The market expressed a mediocre response. After all, it is still unclear whether the impact of this announcement on Hutchison Whampoa is good or bad.

However, for some people, this announcement was a bolt from the blue. Not long after the announcement, Lin Baicheng received a phone call.