The birth of the Hong Kong Island family

It was already late April when Lin Zhichao returned to Hong Kong from overseas.

On this day, he, He Shanheng, He Tian, ​​Zheng Yutong, Guo Desheng, Yang Zhiyun and others gathered in a private room of a teahouse in Central.

The initiator of the meeting was Zheng Yutong. He quickly said: "Everyone, thank you for your support. Today we will formally discuss the plan for the development of the new world."

It turned out that Zheng Yutong had reached an agreement with Swire \u0026 Co., which was to spend HK$145 million to buy the old "Blue Chimney" wharf in its hands, covering an area of ​​199,000 square feet of Tsim Sha Tsui Marina.

Zheng Yutong does not have the ability to develop independently because he also owns Kai Tak Real Estate, which is his main real estate asset.

In the previous life, Kai Tak Real Estate was listed and raised 83 million Hong Kong dollars, while New World Development only raised 50 million. However, later New World Development became the main force and Kai Tak Real Estate became a subsidiary.

Lin Zhichao smiled and said: "You are the general manager, just tell me what plans you have!"

Everyone laughed and agreed with this view.

Chow Tai Fook Enterprises holds 40% of the shares of New World Development, which is the largest shareholding, and the remaining shareholders are around 10%; Ho Shanheng serves as the chairman of the board of directors, and Lin Zhichao only serves as a director in a symbolic sense. He is purely to support his friends.

Therefore, there is no doubt that New World Development is a business of the Zheng family.

And why does Lin Zhichao want to support him?

After all, he doesn't like working with others and is worried about any disputes.

In fact, as long as he is a Shunde businessman, Lin Zhichao will always take care of him or make exceptions for cooperation.

Zheng Yutong immediately said: "Okay! Our first plan is to formally establish New World Development Company and sign a formal sales contract for the 'Blue Chimney' Terminal with Taikoo \u0026 Co., Ltd. This land totals 199,000 square feet."

Lin Zhichao asked: "Have you made a decision yet?"

Zheng Yutong nodded and said, "It's decided!"

Afterwards, everyone discussed the development of this land.

It was Zheng Yutong who took the lead: "My idea is that after buying this land, we will not rush to develop it, but let New World Development develop other real estate projects. When the right opportunity comes, we will list the company and raise funds to develop this project."

Lin Zhichao then said: "This plan is good! That's just right. If I invest this time, I will use the land to become a shareholder."

Zheng Yutong said happily: "This is really great. It also saves us the trouble of purchasing land!"

New World Development has raised RMB 150 million in its first batch of funds, and Lin Zhichao plans to use land worth RMB 15 million as a project development project for this company. His idea was that although he had invested 15 million yuan in land, the value would be more than 60 million yuan when it was cashed out at its peak in 1973, so he would not lose money and could still make a lot of money.

Other shareholders did not all use cash; some also used office building units and movie theaters to offset their losses. Soon, the assets of a real estate company were built. Only to purchase land in Blue Chimney, you must use the loan model.

Everyone reached an agreement to formally establish 'New World Development' in May and start operations.

Back to Cheung Kong Holdings.

The manager of the retail department, Lin Shaodong, reported directly to Lin Zhichao: "Boss, the fifth store of 7-11 convenience store has opened successfully. The sixth store of Café de Coral has also opened successfully."

In the past year, Lin Zhichao has attached great importance to the retail department, spending a lot of energy discussing with colleagues and contributing many excellent solutions.

This year (1970), the goal is to open four 7-Eleven convenience stores, bringing the total number to eight. It’s not that Cheung Kong Holdings lacks financial strength, but that it needs to carry out a gradual development based on Hong Kong’s economic level. If the army presses forward, the biggest possibility is that some stores will not have enough profits.

This year, "Cabar Le" fast food also has four stores, bringing the total number to nine stores. The sources of funds were all solved through loans, signed and guaranteed by Yangtze River Industrial, and the banks opened their doors.

Lin Zhichao said: "Are there any competitors?"

Lin Shaodong shook his head and said: "There are no direct competitors. Even if there are imitations, they are more like a store than a convenience store. A store does not pay attention to decoration, variety of goods, photography, etc., it is not enough. Become an opponent. However, there is one important thing to report to you - the dairy company has opened Hong Kong's first supermarket - Wellcome Supermarket, which is a retail model that you are very optimistic about. "

Lin Zhichao was shocked. It turned out that Wellcome Supermarket was opened by the Dairy Company, not the Land Company. But after Land acquired the milk company, Wellcome Supermarket naturally became affiliated with Land.

"I am not in a hurry to enter supermarkets. I will still focus on developing convenience stores. However, during this period, you must pay more attention to the enrichment of the supply chain and channels. When it matures, we must also have our own supermarket brand."

He cannot wait for the acquisition of Hutchison Whampoa before operating his 'Parknshop Supermarket'. Instead, he plans to launch the supermarket plan - Yonghui Supermarket - immediately after the listing of Cheung Kong Holdings.

After the acquisition of Hutchison Whampoa in the future, all the stores of Parknshop Supermarket will be merged into Yonghui Supermarket. By then, the largest supermarket group in Hong Kong will definitely belong to the Cheung Kong Holdings Group.

Lin Shaodong nodded and said, "Well, we are working hard to increase talent reserves and optimize supply chain channels."

The boss will spend a lot of time discussing the supply chain with everyone, which method is the most optimized, and conduct systematic research. Therefore, he has naturally always attached great importance to it.

"By the way, I made an appointment with Chairman Momofuku Ando of Japan's 'Nissin Company' to come to Hong Kong this week to inspect 7-11 convenience stores. When the time comes, please give us a good introduction. We also hold 49% of Nissin Company's shares. equity, and Nissin plans to join 7-11 convenience stores in Japan."

"No problem, I will definitely do a good job of welcoming you."

Later, after Lin Zhichao gave a detailed explanation, Lin Shaodong left the office.

Lin Zhichao is interested in the Japanese retail market, but he knows that competing with the Japanese in retail is not easy, and he may end up in disgrace. But he has an ally in Japan, and that is the naturalized Japanese Momofuku Ando.

The 'Nissin Company' that the two collaborated with has developed very well in recent years. Nissin Ramen is exported to Europe and the United States and is Japan's No. 1 instant noodle brand. At the same time, the chain model of Ajisen Ramen in Japan has been very successful.

Because of this, Lin Zhichao planned to get involved in the Japanese retail industry in the name of Nissin Corporation.

In the previous life, 7-11 convenience stores only joined Japan at the end of 1973, so there was no time to get ahead of it. The important thing is that Momofuku Ando has experience in retail operations, and Nissin has relatively high cash reserves, so he can definitely take a gamble.

At this time, Japan's retail industry was almost all based on the department store model, so Nissin had great potential to get a share of the pie in convenience stores and supermarkets.

In the Yangtze River Industrial Park, as the first "arcade machine "PONG"" manufactured by Midea Electronics came off the production line, there was warm applause.

Onich, the head of Atari, also came to Hong Kong to visit, because this is the investment strategy of "Atari Electronic Games", which is to coach Midea Electronics in the OEM "PONG" arcade machine to save production costs.

In fact, this was jointly promoted by Lin Zhichao and Audrey Hepburn. Atari Electronic Game Company needed to reduce production costs, and Midea Electronics needed to take the opportunity to enter the 'arcade' field. The two 'hit it off', and Atari Electronic Game Company Provide technology and equipment purchase, and then ask Midea Electronics to do OEM work.

Originally, the production cost of a "PONG" was US$500, but now it only costs US$350 (including shipping, taxes, etc.), and the cost has been reduced a lot.

The current market price of a "PONG" is US$1,200, and the sales volume is 9,000 units; according to Lin Zhichao's estimation, about 10,000 units will be sold in the next two years; therefore, this is a matter of mutual benefit.

Of course, the fundamental reason is that Lin Zhichao hopes to use this method to first acquire the technology of arcade machines and at the same time cultivate talents belonging to "Midea Electronics".

"Mr. Lin, how about we try it out together?" Onich said happily.

Lin Zhichao is a shareholder of Audrey Group, but he did not understand the group's plan at first. Although Hong Kong OEM production saves costs, the quality is difficult to guarantee.

However, the boss and president agreed that he, a branch president, could only obey orders. After all, the arcade game "PONG" was not his idea, but the group's idea.

After learning about Onichi's visit to Hong Kong, he discovered that the manufacturing capabilities and management standards of the Yangtze River Industries Group were definitely comparable to those of Japanese factories; he also understood why all Barbie dolls had been produced in Hong Kong.

In fact, Hasbro also has some parts produced in Hong Kong.

"Try it and see if the quality produced by our Hong Kong OEM is the same as that produced in the United States!" Lin Zhichao smiled and moved forward, and the staff quickly turned on the power.

Onich immediately stepped forward and said: "It is definitely better than what is produced in the United States. Your workers abide by the rules and regulations and are able to endure hardships and endure hardships. They are definitely excellent workers."

This is not sarcasm, but an encouragement. When you can't touch high-end manufacturing, don't dislike low-end manufacturing.

When Fairchild Semiconductor came to Hong Kong to invest in the "Transistor Factory", it also recognized that Hong Kong workers are the best workers in the world, especially Hong Kong female workers - they are cheap and of high quality. In just one year, Fairchild Semiconductor produced 150 million transistors in Hong Kong, supplying many markets around the world.

Next, he played a game with Onic, and Lin Zhichao won.

“What a great experience!”

"Okay, as long as President Onici is satisfied, then we can officially increase our power and start manufacturing orders for Atari!"

"Of course, this time we decided to sign an order contract for 1,000 units, and all subsequent products will be handed over to Midea Electronics for OEM."

"Okay, you and our President Li Zhenlong complete the signing, and I will not participate in the rest."

"no problem!"

Arcade machines, electronic watches, and walkmans, these three projects have been confirmed for more than half a year and have entered the substantive research and development stage. Almost a large number of talents have joined the network in Asia, and even several Japanese engineers have been recruited.

Of course, core components are not included in R\u0026D and production, and more are imported. For example, integrated circuits for electronic watches need to be imported from Europe, the United States and Japan. However, they can be imported from Taiwan later, so the price is cheaper.

Lin Zhichao invited Momofuku Ando to visit Hong Kong. He and Lin Shaodong accompanied him to inspect several convenience stores. The result was that Momofuku Ando was very interested in this new type of retail industry, but had some concerns.

Standing outside the 7-11 convenience store, Momofuku Ando said: "Mr. Lin, we have cooperated for many years, and I have always admired your business vision. However, although the 7-11 convenience store is a very good project , but I’m worried that I can’t compete with other Japanese retail giants. As you know, competition in the Japanese retail industry is very fierce.”

Lin Zhichao said with a smile: "Convenience stores are an emerging model, which is different from traditional retail. They do not sell clothing and home appliances, but more food, newspapers, daily necessities, etc., so there is no need to worry about direct competition with large Japanese retailers. . What’s important is that we are the first to seize the market and the first to eat crabs, so you don’t need to worry.”

Momofuku Ando nodded, thought for a moment, and said, "What you said makes sense. I'm willing to try it. How exactly does Mr. Lin plan to cooperate?"

Lin Zhichao will not be greedy. First of all, Momofuku Ando is a management talent, and secondly, Momofuku Ando is Japanese, so it is impossible for him to hold less shares than Lin Zhichao. Generally speaking, if you want to enter the market of other countries, many industries will give priority to cooperation rather than sole proprietorship. .

"In the name of Nissin Corporation, we took over the Japanese operating rights of 7-11 from American Southern Company. This is cooperation, isn't it?"

"Of course, you are a shareholder of our company!"

The difference between the two people's equity in Nissin is only 2%. Momofuku Ando is also considered honest. He has never cheated Lin Zhichao, and his dividends and other matters are very transparent.

Afterwards, everyone returned to the company to discuss the details of cooperation.

On the Cheung Kong Industrial Group side, managers can be sent to Japan to participate in preparations, because Lin Zhichao has already planned for today.

These people can work in Japan for a period of time and provide better advice and management for 7-11 convenience stores in Hong Kong and Macau.

As Lin Zhichao expected, the Hong Kong stock market rose from 158 points to 196 points after a surge from January to March; but after reaching 196 points on March 13, it began to take profits, especially during the April and May period. In March, affected by the U.S. decision to send troops to Cambodia, which caused a sharp decline in the U.S. stock market, the Hong Kong stock market also joined the ranks of declines.

As of late May, the Hang Seng Index had touched 170 points, down more than 10%.

"Boss, Feng Sheng is here!"

"Well Feng Sheng, come on, please sit down!"

"Linsheng"

Zhou Fuzhao took Feng Jingxi to Lin Zhichao's office, and then the three of them sat on the sofa and chatted.

Lin Zhichao and Feng Jingxi have known each other for a long time. When Sun Hung Kai opened, he personally attended it. Last year Feng Jingxi and Li Jiacheng joined the Hong Kong Real Estate Chamber of Commerce, and Lin Zhichao even invited them to have dinner together with Airship Tai.

Although Lin Zhichao often goes abroad to work throughout the year, his interpersonal relationships in Hong Kong are very large. Of course, Lin Zhichao generally likes to make friends with "promising" people.

Because of this, some people say that Lin Zhichao likes to support others.

"Lin Sheng, you are investing heavily in the stock market. Our brokerage company's biggest customer is none other than you!" Feng Jingxi said with a smile.

Lin Zhichao put down his tea cup and said with a smile: "The biggest customer is yourself, isn't it?"

Feng Jingxi said modestly: "I dare not compare myself with you, but I do focus my main energy on securities now."

He has established Sun Hung Kai Securities since last year to focus on stock trading, while Sun Hung Kai Properties has actually existed in name only, and the separation has become a foregone conclusion. The three brothers broke up peacefully without any conflicts. In his previous life, Lee Shau Kee also served as the vice chairman of Sun Hung Kai Properties for more than 40 years until his retirement in the 21st century.

Today's Sun Hung Kai Properties is originally a real estate planning organization with more than 40 employees; each of its properties may be a partnership project.

However, in the past few years, Sun Hung Kai has indeed made a lot of money, just like opening factories and building a large number of industrial plants and residential buildings. Almost 50 factory buildings are completed in Hong Kong every year, covering about 6 million square feet. This is because there are too many factories in Hong Kong and the demand is very high.

Lin Zhichao said: "Manager Zhou has told you that the securities we invest in are long-term investments, just like investing in a company, so I'm afraid you won't get much commission."

Feng Jingxi immediately said seriously: "Mr. Lin was joking, this is what we should do well. Besides, you trust us, Sun Hung Kai Securities. I thank you for not being able to come in time."

Lin Zhichao nodded and said: "I am very optimistic about your achievements in the financial field. I leave the securities to you, and the real estate industry is very safe. But there is one thing you must pay attention to, confidentiality is very important. After all, you know my identity, And this amount of funds has a great impact on the market.”

Feng Jingxi nodded and said, "Don't worry about this, we will definitely do a good job."

After chatting for a while, the three of them went to have lunch together.

The cooperation with Feng Jingxi this time is a good opportunity to share the huge funds for stock trading.

Only then did Lin Zhichao realize that even if he was doing real estate in Hong Kong, it was not as good as making money by speculating in Hong Kong stocks.

If he earns 800 million Hong Kong dollars in this bull market, the real estate business of Cheung Kong Holdings Group will not yet have this amount.

Of course, the nature is completely different. Real estate can make money all the time, while stocks need to be deployed for many years. Take this wave of securities. He started planning in 1967 and could not harvest until early 1973. In the stock market from 1973 to 1974, he could not make a penny, but in the past two years, the real estate industry was still not affected too much. Big impact.

What's more, money must be earned, both big and small. (End of chapter)