Reborn as a tycoon in Hong Kong

Hong Kong Electric Group was acquired by Lin Baicheng in mid-to-late September 1978. The company's net profit in 1978 was HK$230 million.

Although the shareholding of Hong Kong Electric Group has changed significantly, and the shares are concentrated in Lin Baicheng and the British-owned Yingyao Company, the British capital and Lin Baicheng competed for the controlling stake in Hong Kong Electric Group in December 1979.

Therefore, the struggle between Lin Baicheng and British capital for the controlling stake of HK Electric Group did not affect the performance of HK Electric Group in 1979.

In 1979, Hong Kong Electric Group issued additional shares to Lam Baicheng when it was acquired in 1978, thus obtaining a large amount of funds. These funds were used to build power plants and replace old wires. The investment in 1978 benefited in 1979.

In 1979, the Hong Kong Electric Group not only benefited from its power generation business, but also its real estate business due to the rise in overall real estate in Hong Kong. Both of these two main businesses improved significantly during this year.

Therefore, HK Electric Group's net profit exceeded HK$400 million in 1979, reaching HK$415 million, a growth rate of 80% compared to last year.

Of course, this is the annual report for Lin Baicheng. The annual report released by HK Electric Group will naturally not be this one.

At present, HK Electric Group has not released its annual report. Lin Baicheng will only suppress the stock price of HK Electric Group and will not increase the company's stock price. Therefore, in the annual report released by HK Electric Group, the company's net profit this year will definitely fall sharply.

Whether it is investing in power plants in the mainland or investing in real estate business in Hong Kong, as long as the management is willing, the relevant investments can be offset against the Hong Kong Electric Group's profits in 1979 through accounting, thereby achieving the purpose of reducing profits.

If he is ruthless enough, even though the net profit of Hong Kong Electric Group this year has exceeded more than HK$400 million, Lin Baicheng can make the annual report released by Hong Kong Electric Group show that the company suffered a loss last year.

This is not that Lin Baicheng diverted funds from the Hong Kong Electric Group. If he dared to do this, the British capital would definitely not let him go. Doing the accounting would not affect the interests of the Hong Kong Electric Group. Without worrying about other shareholders, Lin Baicheng thought Just do it, there is nothing the British capital can do.

Hong Kong Electric Group's profit growth rate last year was still quite high, and its performance was very good. Not surprisingly, the company's performance this year will not be bad. Lin Baicheng is satisfied with this.

Although he is prepared to teach British capital a lesson in Hong Kong Electric Group, Lin Baicheng does not intend to turn Hong Kong Electric Group into garbage. If this is the case, his losses will be even greater.

Lin Baicheng is also preparing to develop Hong Kong Electric Group, but he will continue to suppress the stock price. He will never let British capital easily withdraw from Hong Kong Electric Group until the British capital pays the price.

It's just that a lesson to the British capital is a lesson to the British capital. The company still needs to develop. Otherwise, the 3 billion Hong Kong dollars that Lin Baicheng invested in HK Electric Group will be wasted. No matter how rich he is, he cannot do this.

What's more, although Lin Baicheng is very rich because of his huge profits from long gold futures, 3 billion Hong Kong dollars is not a small amount for him. He will still feel heartbroken if he loses all.

"British capital will definitely not give up and will definitely find ways to interfere in the management and operations of HK Electric Group. This year I have to be more careful about HK Electric Group."

Lin Baicheng secretly thought in his heart, putting himself in his shoes, he would not give up easily even if he were a British investor, so he had to be more careful with the British investors and be more concerned about the Hong Kong Electric Group this year.

After all, British capital is the major shareholder of HK Electric Group. If he, the chairman, often ignores HK Electric Group, Levi's and others will definitely not be able to defeat British capital. After all, they are just high-level wage earners in the end.

Soldiers versus soldiers versus generals, Lin Baicheng must block the British capital so that the pressure on his subordinates will not be so great.

Next is the annual report of Qingzhou Yingni Company.

Not counting several shell companies, Qingzhou Yingni Company can be said to be the company with the smallest assets under Lin Baicheng's name.

Lin Baicheng privatized and delisted the Qingzhou Yingni Company with less than 150 million Hong Kong dollars. The company's revenue in 1978 was 114 million Hong Kong dollars, with a profit of 17.5 million Hong Kong dollars, but a net profit of less than 15 million Hong Kong dollars.

Last year in 1979, Qingzhou Yingni Company began to sell cement at a reduced price according to Lin Baicheng's order, in order to squeeze out the remaining cement companies and achieve the purpose of monopolizing the Xiangjiang cement market.

However, the development of Xiangjiang's real estate industry was good last year, so more real estate projects were built, and the cement industry benefited from this. Therefore, the tonnage of cement sold by Qingzhou Yingni Company to external parties last year increased by a relatively large proportion.

Therefore, although Jinzhou Yingni Company lowered its cement price last year, the company's revenue last year increased to HK$138 million, but its profit was only HK$18.6 million, and its net profit was only HK$15.5 million. Compared with the year before, It didn't grow much.

Last year, Qingzhou Yingni Company invested in and built a cement factory in Shekou. However, the factory had just been built not long ago and the business had just started, which did not bring much profit to the company.

In addition, Lin Baicheng also injected 100 million Hong Kong dollars into Qingzhou Yingni Company, which was used by the company to purchase land in Tin Shui Wai. He knew that 100 million Hong Kong dollars was not enough, but he just thought that he would inject capital when it was not enough. Unexpectedly, the land acquisition did not go smoothly, and the 100 million Hong Kong dollars were not spent at all.

Lin Baicheng is currently communicating with the Hong Kong government, hoping to join forces with the Hong Kong government to acquire the land in Tin Shui Wai. The Hong Kong government will purchase the land in its entirety, and then work with the Hong Kong government to develop a new town.

If the plan is followed, the investment will be huge, but the rewards will be huge when the time comes.

This is a big project that cannot be settled by just a few words between Lin Baicheng and MacLehose. There has not been much progress yet, and it still takes time to do related work with the Hong Kong government.

Speaking of which, the annual profit of Qingzhou Yingni Company is about 15 million Hong Kong dollars, and it will take ten years for Lin Baicheng's investment to be repaid. It seems that this is not a good business.

However, the Yingzhou Yingni Company has a large piece of land in Hung Hom. When China and Britain start negotiations on the return of Xiangjiang and the real estate industry collapses, Lin Baicheng can take the opportunity to ask the Yingzhou Yingni Company to change the land use in Hung Hom. At that time, you only need to pay a small fee and then develop it, and then you can bring a lot of profits to Lin Baicheng.

It is estimated that profits of several billion Hong Kong dollars will be made by then. If Jinzhou Yingni Company sells cement, they don't know how many years it will take to earn so much.

Therefore, Lin Baicheng does not care that the current annual profits of Qingzhou Yingni Company are not very large. What he values ​​​​is the benefits that this company can bring to him in a few years, and the importance of the company's cement business to the real estate industry.

Once Qingzhou Yingni Company can monopolize the Xiangjiang cement industry, then all real estate companies will have to give Lin Baicheng some face. Although he is already the richest man in Hong Kong and his social influence has greatly increased, similar help can increase his influence and improve his social status in Hong Kong.

Then there is Galaxy Semiconductor. This company has subsidiaries in the United States and Japan. However, the subsidiary in Japan is still too small and is also called Galaxy Semiconductor. However, the subsidiary in the United States is not small in scale. The name of the company is Galaxy Semiconductor.

Galaxy Semiconductor was founded by Lin Baicheng at the end of 1978. At that time, it could basically be said to be a shell company. Galaxy Semiconductor was composed of technologies acquired by Lin Baicheng from Intel and Texas Instruments. Lin Baicheng spent a total of US$269 million on this.

Because it was acquired at the end of the year, Galaxy Semiconductor's revenue and profit are negligible, and Galaxy Semiconductor has no revenue or profit.

In 2079 last year, Galaxy Semiconductor was officially merged into Galaxy Semiconductor and became a subsidiary of Galaxy Semiconductor.

Last year, Galaxy Semiconductor sold a lot of its own products due to the huge sales of Galaxy Game Company's arcade machines and Xingyue consoles, so its revenue and profit were not low. Revenue was US$120 million and profit was US$35 million.

As for Galaxy Semiconductor, Galaxy Semiconductor is a subsidiary of Galaxy Semiconductor, and its revenue and profits naturally belong to Galaxy Semiconductor.

As for net profit, it depends on how it is calculated.

If only employee salaries, water and electricity and other expenses are deducted, Galaxy Semiconductor will still have a net profit of about US$24 million in the end.

But if you include the company's investment last year, there is no hope of making any money at all.

Galaxy Semiconductor invested US$220 million last year, of which US$40 million was spent on acquiring third-rate display panel technology and production lines, as well as US$180 million in laboratory construction, talent recruitment, advanced equipment procurement, technology research and development investment, etc. .

Of course, Galaxy Semiconductor’s total investment of US$220 million includes Galaxy Semiconductor’s investment. Galaxy Semiconductor’s chip technology research and development, equipment procurement, talent recruitment, etc. also cost money.

The two sides invested a combined US$220 million in 1979, totaling more than HK$900 million. The company's net profit of more than US$20 million was of no use at all.

There was a lot of investment in 1979, but it was difficult for Galaxy Semiconductor to produce results in 1980. Technology research and development is not enough in one year, it takes time to accumulate. If you are lucky, you can achieve considerable results in one year, but this is The possibility is very small.

Therefore, Galaxy Semiconductor invested US$220 million in 1979, and will continue to invest in 80 this year, and will continue to invest next year and the year after that. However, the bulk of the equipment purchase is in the early stage. This year and the future will not cost too much in equipment investment. In terms of money, the annual investment should not be as much as last year.

In total, Lin Baicheng spent US$269 million to acquire Galaxy Semiconductor, and Galaxy Semiconductor invested another US$220 million last year. The total investment is nearly US$500 million, which shows that the semiconductor industry is burning money.

Real cash investment, Lin Baicheng spent US$269 million to acquire Galaxy Semiconductor, injecting HK$500 million into Galaxy Semiconductor. Galaxy Semiconductor borrowed HK$1 billion from HSBC. This three-year loan only has an annual interest rate of 5%, so the company still has a lot of funds left.

From the loan from HSBC and the company's profit last year, Galaxy Semiconductor has more than 600 million Hong Kong dollars left. Coupled with the profits the company can create this year, Lin Baicheng feels that he should not need to inject funds into Galaxy Semiconductor in 1980, even if there is a gap. Not much different.

Because Lin Baicheng has made a lot of money by longing gold futures, he plans to use some funds to continue investing in the semiconductor industry. However, the semiconductor industry is more than just display panels and chip technology. Even if he wants to invest, he will invest in new industries and acquire separate technologies.

Furthermore, the research and development of mobile phones also requires a lot of investment. Lin Baicheng's own biomedical research starting this year will also cost a lot of money, so there are many places to spend money.

Venus Electric Company.

In 1978, it was still a shell company. Lin Baicheng only acquired the TV manufacturing department from General Electric in February 1979 and established a subsidiary, Venus TV. By then, Venus Electric Company was no longer an empty shell company. shell.

After that, Jinxing Electric Company successively acquired patented technologies and production lines for air conditioners, refrigerators, washing machines, etc., and spent a total of US$40 million on the construction of processing plants.

The acquisition of Venus TV cost 120 million U.S. dollars, and the post-acquisition capital injection was 30 million U.S. dollars. Other technologies and factory construction cost 40 million U.S. dollars. The investment here is 190 million U.S. dollars.

These are of course not the total investment. Although Jinxing Electrical Appliance Company has not acquired any more technology, it will definitely cost money to purchase raw materials to produce these appliances. Channels need to be expanded. Salaries must be settled every month for employee recruitment, and expenses such as water and electricity must also be settled monthly. .

Therefore, Lin Baicheng later invested another HK$50 million, adding up to his total investment in Venus Electric Company of HK$850 million.

In 1979 last year, Venus Electric Company's revenue was US$56 million, mainly contributed by Venus TV Company, and its profit was US$14.8 million. After deducting expenses such as factory water, electricity, employee salaries, etc., the net profit was only US$9.6 million. to $10 million.

The revenue and profit of Venus Electric Company last year was not high, but there is nothing that can be done about it. Currently, the company only has markets for Venus TV Company’s TVs in North America, and other electrical appliances are also sold in Xiangjiang. Overseas markets still need to be opened up by the company. Just expand.

The current main goals of Jinxing Electric Company are twofold. One is to open up the market so that the electrical appliances produced by the company have a place to digest; the other is to update the existing technology and develop better technology. Only better technology Only by producing better electrical appliances can we sell them more easily.

Compared with Lin Baicheng's investment in Jinxing Electric Company, the profits that Jinxing Electric Company created for him were not high. Fortunately, Lin Baicheng did not expect that the electric appliance company could create a lot of profits for him in a short period of time. He was optimistic about the long-term future.

The electrical appliance industry is closely related to the socioeconomic level. The better the economy is, the higher people's income will be, so they will have money to enjoy life and buy electrical appliances.

We have just entered the 1980s. In this era, even the U.S. economy is not very good, and people's income levels are not very high.

If the U.S. economy was doing well, it would not plot against Japan in five years' time, force Japan to sign the Plaza Accord, and cut off Japan's flesh to replenish its domestic economy.

Lin Baicheng is optimistic about the future of the electrical appliance industry. As people's economic level gets better and better, Venus Electric Company, which is slowly occupying the market, will definitely create a lot of profits for Lin Baicheng in the future.

Of course, the company must survive and occupy the market. Even if you don't become an industry leader, you must at least be first-class in the industry. Otherwise, it will not be so easy to reap profits after the economy improves.