Reborn as a tycoon in Hong Kong

The morning passed like this.

Hutchison Whampoa, Asia Star Media Group, and Galaxy Financial Group have many subsidiaries. Lin Baicheng has a lot of corporate annual reports to read. With the rest time in between, the morning passes quickly.

In the afternoon, after two o'clock, Lin Baicheng came to Galaxy Financial Group to continue reading the annual report.

Hong Kong Electric Group, in 1979, because British capital was the company's major shareholder, Lin Baicheng announced that the company's profits were not high in order to suppress the stock price, but the real situation was that the company earned 415 million Hong Kong dollars in 1979.

In 1980, due to the investment and construction of factories in the mainland, and the unwillingness of the major shareholder British Capital to continue to seek trouble, it affected the operation of the Hongkong Electric Group. Therefore, the company's revenue and profit for that year were greatly affected. The annual profit was only HK$220 million. Compared with last year, it was nearly 200 million Hong Kong dollars less, which was a bit large.

However, according to the 1979 annual report of Hong Kong Electric Group released last year, the company's net profit in 1980 still increased year-on-year.

In other words, to the uninformed, the Hong Kong Electric Group's revenue and profits both increased in 1980, and the company seemed to be operating well and developing smoothly.

But this is not the case. Hong Kong Electric Group currently has a market value of almost 9 billion Hong Kong dollars, but its annual net profit is only 220 million Hong Kong dollars. The price-earnings ratio is about 40 times, which is quite high.

In today's era, there may be high-tech companies, but they definitely don't have price-to-earning ratios of dozens or hundreds of times. At most, they only have price-to-earnings ratios of twenty or thirty times.

Most companies usually only have a price-to-earnings ratio of ten to fifteen times. Only those companies that are well-known and perform well every year can have a price-to-earnings ratio of more than twenty times. This is the market norm.

Of course, it will definitely be different if we encounter a bull market or a stock market crash. In a bull market, the price-to-earnings ratio of each company will definitely increase, and it may be 30, 40, or even 50 times; during a stock market crash, the market has no confidence, and the price-to-earnings ratio of listed companies will definitely decrease, and a price-to-earnings ratio of less than ten times is also very normal.

"What a pity for Hong Kong Electric Group. British capital is really harmful to people."

After reading the annual report of Hong Kong Electric Group, Lin Baicheng was very dissatisfied with British capital.

If there were no British investors looking for trouble, after Lin Baicheng took over the Hong Kong Electric Group and spent money to replace the lines for the Hong Kong Electric Group, the Hong Kong Electric Group would increase its electricity bills, and its annual revenue and profits would be greatly improved. The company should be better than before in the past two years. Lin Baicheng should have made more money before taking over.

But now, the profitability of Hong Kong Electric Group in the past two years is not as good as when Lin Baicheng didn't take over, and the company's stock price has not risen much. The investors who bought the company's shares have suffered a lot.

Compared with before Lin Baicheng acquired HK Electric Group, the current stock price of HK Electric Group has risen a lot. However, in the past two years, the Hong Kong stock market has been on the rise, and the stocks of most companies have risen. Even if Lin Baicheng did not acquire HK Electric Group, HK Electric's share price will also rise in line with the Hang Seng Index's rise, and may even rise more.

After all, with the size of HK Electric Group being several billion Hong Kong dollars, it can be regarded as a heavyweight stock in the Hang Seng Index. Benefiting from the overall rise in the stock market, the company's stock price should increase a lot.

Now that the British capital has left HK Electric Group, the subsequent business development of HK Electric Group will definitely be improved. As long as there are no major problems, HK Electric Group will develop in a good direction.

However, the Hong Kong Electric Group has a competitor in Hong Kong called China Electric Power Group. Although the scale of China Electric Power Group is incomparable with that of the Hong Kong Electric Group, the Kadoorie family belongs to the British capital, and because the relationship between the British capital and Lin Baicheng has deteriorated, the British capital-related Enterprises will definitely switch to using electricity from CLP Power. If Hong Kong Electric Group wants to develop well, it must suppress and defeat its opponent, CLP Power.

Whether they can beat China Power depends on the ability of Lin Baicheng and the management of Hong Kong Electric Group.

Jingzhou Yingni Company.

Since this cement company was privatized by Lin Baicheng, it has begun to implement a price-cutting sales strategy in order to monopolize the entire cement market, or even occupy a larger share of the market.

In 1979, despite the price reduction of cement, Qingzhou Yingni Company's revenue was HK$138 million, operating profit was HK$18.6 million, and net profit was HK$15.5 million, showing good profitability.

In the 1980s, cement prices continued to fall. However, due to the upward trend of the real estate industry, the supply of cement exceeded demand. Therefore, excluding Qingzhou Yingni, there are still two cement companies surviving in Xiangjiang. However, the scale of these two companies is not large. Qingzhou Yingni Company has occupied 80% of the Xiangjiang cement market, and it is difficult for the other two companies to compete with Qingzhou Yingni.

In addition to the Xiangjiang market, the branch factory established by Qingzhou Yingni in Shekou in 1979 has begun production. Because many businessmen go to Shekou to build factories, and there are a lot of infrastructure projects like road construction in Shekou, the cement has no worries about selling, and the Shekou branch has begun to generate income.

Throughout the 1980s, Qingzhou Yingni's revenue was HK$172 million plus RMB 12 million, operating profit was HK$19.3 million plus RMB 1.73 million, and net profit was HK$14.8 million plus RMB 1.62 million.

In the Xiangjiang area, due to the price reduction of cement, more cement was sold and revenue increased a lot. However, the gross profit margin decreased and profits fell significantly.

At the same time, the income generated in the Shekou area is all RMB. The middle and high-level managers who used to work in Xiangjiang were paid in Hong Kong dollars by Qingzhou Yingni Company, so the expenditure in Hong Kong dollars will increase, but the expenditure in RMB will be very small, resulting in Net profit in Hong Kong dollars dropped a lot.

At the current branch factory in Shekou, it is not that Qingzhou Yingni Company excludes mainlanders and does not recruit mainlanders for middle and senior management, but that it simply cannot recruit qualified people.

Of course there are cement companies in the Mainland, but they are state-owned enterprises, so it is impossible for them to leave their iron rice bowl and not work in your private enterprise.

In today's era, Chinese people attach great importance to the iron rice bowl. Even if you hire a foreign-funded private company with several times the salary, they will not choose to change jobs.

After reading the annual reports of Hong Kong Electric Group and Jingzhou Yingni, Lin Baicheng took a short rest.

After about twenty minutes, continue reading the annual report.

Venus Electrical Appliances.

It was still an empty shell in 1978. Starting in 1979, the company began to buy and buy. After acquiring the technology patents, it began to build factories for air conditioners, refrigerators, washing machines, televisions, ovens and other home appliances. With these home appliances, Venus Only then did the electrical appliances begin to live up to their name.

In order to acquire these home appliance technologies and build factories, Lin Baicheng invested a total of 850 million Hong Kong dollars.

In 1979, Venus Electric's revenue was only US$56 million, and its net profit was only US$9.6 million, which was just over HK$40 million. Compared with the investment of HK$850 million, the net profit in 1979 was very small. Very few.

Revenue and profit were low in 1979. There was nothing we could do about it. After all, the home appliance technology patents had just been acquired that year, the factory had just been established, and the products had not been on the market for long, not to mention that product sales channels also needed to be established.

Therefore, it is acceptable for Venus Electric to have low revenue and profit in 2079.

Last year in 1980, Jinxing Electric ushered in rapid development.

Properties under the name of Hutchison Whampoa will be sold with supporting appliances, and these appliances are purchased in large quantities by Hutchison Whampoa from Venus Electric.

By doing this, Hutchison Whampoa itself will not suffer losses. Anyway, the price of home appliances is directly calculated on the house price, and having matching home appliances can make the house sell better.

Tenants who buy a house also have no losses. The cost price of the home appliances purchased by Hutchison Whampoa is calculated into the house price. Hutchison Whampoa's large-scale purchase makes the home appliances much cheaper than the retail price, which means that the tenants have bought matching cheap home appliances.

It can be said that this is a win-win-win situation.

In addition, Venus Electric's home appliances can also be sold through Watsons' channels. Because they are a brother company, the channel fees are slightly cheaper than those of their peers.

Jinxing Electrical Appliances itself is also engaged in self-operated business, opening self-operated home appliance shopping malls, and also provides customers with door-to-door installation services for large home appliances.

Putting all aspects together, although the home appliance brand of Venus Electric has just been put on the market, it has quickly lost a certain market share, causing the company's revenue and profit to increase several times in 1980.

In 1980, including the Venus TV subsidiary in the United States, Venus Electric's total revenue reached HK$925 million, operating profit was HK$287 million, and net profit was HK$236 million.

In this day and age, making home appliances is still very profitable, and the profit margins are relatively high, especially in emerging markets.

At present, most of Jinxing Electric's home appliance factories are located in Xiangjiang, and there is only one branch factory in Shekou in the Mainland. The reason why all the factories have not been moved to Shekou is because Xiangjiang is Lin Baicheng's basic base, and Lin Baicheng To consolidate or even strengthen his base.

What is the basic disk?

The number of companies in Hong Kong, their impact on people's lives, total wealth, taxes paid, number of employees working for them, number of families affected, etc.

The more of these, the greater Lin Baicheng's influence will be in Hong Kong, and the more stable his basic base will be.

Therefore, it is impossible for Lin Baicheng to move all the factories out of Xiangjiang, especially since his current social status in Xiangjiang is not yet stable, and there is a huge problem with the return of Xiangjiang. He needs the support of the majority of people in Xiangjiang to let some people I dare not do anything to him easily.

Galaxy Semiconductor, its annual report has summarized the annual report of its subsidiary Galaxy Semiconductor.

Galaxy Semiconductor and its subsidiary Galaxy Semiconductor can be said to be the company where Lin Baicheng invested the most but returned the least.

Lin Baicheng invested US$500 million in Galaxy Semiconductor through acquisitions, factory construction and recruitment. In 1979, Galaxy Semiconductor's net profit was only US$24 million.

The reason why Galaxy Semiconductor can have a net profit of US$24 million is thanks to two companies, Galaxy Games and Xingyue Electronic Games. All the semiconductor accessories required for arcades and consoles are provided by Galaxy Semiconductor. This allows Galaxy Semiconductor to have no We have no worries about continuous production and stable profits.

Otherwise, if the factory continues to produce but the products cannot be sold, or the price needs to be reduced to sell, then the company will not only make money, but it will be considered good if it does not suffer a huge loss.

The huge investment in 1979 allowed Lin Baicheng to invest only US$100 million in Galaxy Semiconductor in 1980, and the remaining US$100 million had not yet been spent. The reason why the investment in 1980 was so small and the money has not been spent all is because the US$500 million invested in 1979 was not spent in 1979. The unspent money continued to be invested in 1980. This is what 80 is. The main reason why Lin Baicheng no longer needs to invest heavily.

Relying on arcade machines and Xingyue consoles, as well as the developed home appliance company, Galaxy Semiconductor's revenue and profits increased a lot in 1980, with revenue reaching US$325 million, operating profit of US$27.5 million, and net profit of US$16.3 million.

Compared with 1979, the revenue and profit in 1980 increased, but the net profit decreased. The reason is very simple, that is, in the 1980s, the company recruited some industry giants and elite talents and provided them with high salaries, which led to a large increase in expenses and thus affected net profits.

"The technology of semiconductor companies still needs to be improved."

This is Lin Baicheng's emotion after reading the annual report.

In technology industries such as semiconductors, if the technology is at the world's advanced level, the profit rate is actually very high, 15%, 20% or even 30% is possible. Unlike Galaxy Semiconductor, the current average profit rate is only about 8.5%.

The reason why it is so low is simple. The technology is not advanced enough, which leads to increased costs and thus affects profits.

As long as Galaxy Semiconductor's technology advances, profits will increase while the market and raw material prices remain unchanged.

However, technological progress cannot be achieved with just a touch of mouth. It requires spending money on talents for research and development. Only through repeated research and development can technological progress be achieved.

Although Galaxy Semiconductor has a large investment and is not profitable, Lin Baicheng is mentally prepared for this, so he is not disappointed after reading the annual report. He is very clear about the importance of semiconductor technology.

Everything you invest now is to make a lot of money in the future and not to be stuck by others.

After reading Galaxy Semiconductor's annual report, Lin Baicheng contacted the secretary outside through the internal phone and asked the secretary to call Qin Lan in. When I was reading the annual report, the secretary came in and said that Qin Lan had something to report to him. Since Galaxy Semiconductor was about to finish the annual report, he asked Qin Lan to wait outside.

"What's the matter, Director Qin?"

"Mr. Lin, we got some news."

Qin Lan replied: "Chen Songqing of the Carnegie Group got help from Jardine Matheson and the Swire Group through the help of the HSBC Shenzhou Congee Group. HSBC and the two companies were interested in taking over the shares of the Carnegie Group from Hutchison Whampoa."

"It seems like this is his reward for choosing British capital."

Lin Baicheng couldn't help but smile when he heard this. When the Jianing Group is hit by thunder, these three companies will be in bad luck. They just don't know how much assets Chen Songqing's Jianing Group can leave to their shareholders.

"Do you know what price they are willing to pay for Hutchison Whampoa's shares?"

"Mr. Lin, this kind of thing is obviously a secret that only a few people know, and we have no way of finding out." Qin Lan shook her head immediately after hearing this.

"If you can't find it, forget it. Don't force it."

Lin Baicheng was not disappointed when he heard this. He was just asking as a precaution.

After the report, Qin Lan went out. Lin Baicheng looked at his watch and found that there was still some time before getting off work, so he decided to continue reading the annual report.