The birth of the Hong Kong Island family

On New Year's Day 1993, the Wharf Group held a press conference. Lin Zhichao announced that he would step down as chairman of the board of directors and his son Lin Ruihai would serve as the chairman.

For a time, there was a lot of heated discussion in Hong Kong and Kowloon.

"If you retire at such a young age, you won't be like Uncle Tong. When the time comes, he will come back and apply PG for your son!"

"How can this be the same? When Lin Ruihai was the president of Wharf Group, his performance was better than that of his father. His investment in commercial real estate in Southeast Asia had a huge increase in book value, and he acquired Singapore's largest commercial real estate listed company in one fell swoop. Last year, he also won several projects in the mainland Large-scale commercial projects. The five sons of the Lin family are all business tycoons!"

"It's so powerful, I thought it was Mr. Lin Zhichao who took care of these things!"

"Mr. Lin Zhichao was already semi-retired a few years ago, just like Uncle Tong. However, Uncle Tong had to come back to work the year before last, and Mr. Lin Zhichao retired directly."

People have lamented that ‘Lam has a good way of teaching his children’, and now all of them are able to take charge of their own affairs and dominate Hong Kong.

Wharf Group.

The company still retains Lin Zhichao's office and treats him as an 'honorary chairman', which is equivalent to having 'advisory rights'.

Lin Ruihai said: "Dad, at the beginning of next month, the Diamond Hill Land King will be auctioned. The land is 280,000 square feet. It can be built into a commercial and residential mixed-mode project. It is expected that five residential buildings totaling 1.2 million square feet can be built (about 1,800 residences). And a 650,000-square-foot shopping plaza. I want to participate in the auction and win this project!"

Lin Zhichao heard this and said, "You have to figure it out! For investment in Southeast Asia, try to start shipping next year (1994). The bubble there is almost similar to Japan. Try to withdraw the funds within two years. Throughout the 1990s, the main development Mainland, then stabilize your position in Hong Kong and Singapore. After the millennium, you will have the strength to make stable investments globally."

Lin Ruihai nodded. He would not question his father's general direction. After all, my father is a successful person with decades of experience, how can they compare with him.

He thought for a while and said: "Father, the Wharf Group's development in Hong Kong has basically completed its layout. In the field of commercial real estate, it will have almost 10 million square feet of rental area; but in the field of real estate development, we do not have If you invest too much, you will not invest too much in the future to avoid making people think that our family is the only one. So I am thinking whether my family can move to Singapore in the future. Of course not now, at least after 1997, let you His grandson moved there."

Although the Wharf Group has invested in the development of real estate (residential) in recent years, it has actually done so in a small way. During this period, it invested in two large-scale housing estates (a total of 3,500 residences), Yiyiju and Yilong Villa. In partnership with other consortiums, it only accounts for one-third.

Lin Ruihai could also clearly see the external situation, so he took the initiative to "avoid" Hong Kong and prepared to win the Diamond Mountain King, and then gradually reduced Hong Kong's investment.

Lin Zhichao said: "There is no need to rush into this matter. It is best to wait until Hongzhi and others grow up and gradually settle in Singapore."

Lin Ruihai nodded and said, "Well, I understand!"

The second eldest son, Sun Lin Hongzhi, was born in 1977 and works after the turn of the millennium. At that time, they will be sent directly to the Singapore company to complete the move to Singapore. Then use Singapore as your base to conduct global investments.

In Hutchison Whampoa’s conference room.

Lin Zhichao sat in the chairman's seat, with Ma Shimin and Huo Jianning on both sides, and below him two rows of foreign senior officials. Although Hutchison Whampoa has recruited local talents in the past year, there is still some way to go for these talents to advance to senior levels.

"As for the bidding plan for the 'exclusive license for local fixed telecommunications network services', I carefully looked at it and found that there is no problem! I believe that with the strength of Hutchison Telecom, it will not be difficult to win the bid." Lin Zhichao said first.

The local telephone patent rights owned by Hong Kong Telecom will expire on June 30, 1995.

Hong Kong Telecom's 100% monopoly (overseas fixed lines, local fixed lines) has made people very dissatisfied and has been criticized by many people. In 1987, the Hong Kong government hired the consulting firm Booz (a British company) to conduct a study on the future of Hong Kong's telecommunications industry. The following year, the company filed a report. No one in the outside world has seen the text of the report. They only know that the report recommends that the government break the existing monopoly on telecommunications networks.

Because of this, the Hong Kong government decided to put out three "local fixed-line" licenses for public bidding. As for the 'overseas fixed line (international long distance)' license, it needs to expire in 2006, so we won't mention it for now.

On the other side, Hong Kong Telecom (British Dadong Holdings) is not a vegetarian. It resorted to a unique trick - first 'cut the Hong Kong telephone patent into a piece of meat and bones' - that is, cancel Hong Kong (local) telephone charges. In this way, the battle for patent rights is undoubtedly a 'dog fighting for meat and bones'. Hong Kong Telecom will not feel sad if it abandons it; the winner of the new patent rights will be in vain and will not be profitable for at least a few years.

Then why are there several companies bidding for the local telephone patent rights that are free of charge?

It turns out that although the right to operate local fixed-line telephone network services does not include the right to operate international telephone networks. However, when anyone makes an international call and picks up the phone to dial, the message must first pass through the local network, then reach the international telephone network, and then be transmitted outside Hong Kong. At the same time, the principle is the same for international calls and faxes into Hong Kong.

Therefore, anyone who uses the new network that will appear in the future to make or receive international calls, if the new network is directly connected to the international telephone channel, Hong Kong Telecommunications Company will have to pay the new network operator an average transmission fee of HK$1.05 per minute - this is It is marked on the government bidding documents.

The exact amount of transportation fees will be reviewed by the Hong Kong government once a year. After the emergence of new networks, the number of networks that each call passes through is different, and the mutual connection charges need to be determined through negotiation between Hong Kong Telecom and the new network operator.

Local network operators will not be profitable for several years. They were so keen on bidding for the local telephone patent rights. We are still optimistic about international phone services after 2006. If a company does not even have the right to operate local telephone calls, then it can apply for the right to operate international telephone calls.

Hong Kong's international telephone turnover is growing at an annual rate of 23%. No industry in Hong Kong can grow steadily with such a large expansion coefficient, and the prospects are indeed attractive.

The most vocal bidding company is a joint venture between Hutchison, Sun Hung Kai and the American company Nynex. Sun Hung Kai already has cable TV's fiber optic network and can make use of the system if it is licensed.

At this time, Sun Hung Kai, the three brothers worked together to develop Sun Hung Kai very well. It became the second largest Chinese-funded tycoon in Hong Kong; first, it was a real estate developer (residential) after Cheung Kong; second, it invested in various new towns. Many shopping malls also own Sun Hung Kai Building and Central Plaza in Wan Chai. Finally, they acquired cable TV networks, which was the first step in integrated development and sales.

Huo Jianning immediately said: "If Hutchison lays lines directly to fixed-line users and connects the original mobile phones and CT2 wireless network, mobile phone users no longer need to go through Hong Kong Telecom's network connection to make local calls; if Hutchison Network directly connects to If it provides access to international calls, its users do not need to go through Hong Kong Telecom’s local network to make international calls. In this way, Hutchison can save the current 9 cents per minute fee for interconnecting to Hong Kong Telecom’s network. The cost reduction makes us more Competitiveness and advantage.”

Lin Zhichao nodded with satisfaction and said: "The number of CT2 wireless network users in Hong Kong has exceeded 50,000, which is much better than the situation in the UK, but remember not to continue investing. Cellular wireless networks are the mainstream in the future, and Orange in the UK has a good future. Enterprises must focus on development." There are too many businesses and technologies in the telecommunications field, and if you make a mistake, you will lose a lot of money.

But Huo Jianning is a man who can make more money than Ma Shimin. In his previous life, he made a series of financial arrangements for Husky and Orange, which was a stroke of genius, so Lin Zhichao trusted him very much. I feel less reluctant to leave Ma Shimin soon.

Of course, Li Jiacheng was also very visionary in his previous life. After selling Orange, he spent 500 Hong Kong dollars to bid for British 3G, which triggered the global enthusiasm for 3G, which in turn triggered the pursuit of 3G in Germany; but at this critical moment, Li Jiacheng quickly calmed down. One-hand pinch - announced the launch of the German 3G bidding. After a series of operations, you can really make a lot of money, and you can calm down afterwards.

In the following meeting, Lin Zhichao gave instructions on retail and energy one by one.

In particular, the retail sector has also entered a stage of great development. Watsons' beauty business will take advantage of the rise of "Hong Kong culture" and gradually expand its market overseas.

At the same time, Hutchison Whampoa's investment focus has also shifted to Hong Kong and the mainland, with overseas development being secondary.

Hutchison Whampoa's profit last year (1992) was HK$8.2 billion, while the port and retail business (including Watson's manufacturing) almost reached more than HK$6 billion in business. Energy and telecommunications are still not truly profitable, and real estate, trade, and securities The profits of shipping, shipping, etc. are still very objective.

Back at the headquarters of Cheung Kong Group, Lin Zhichao sat in his office and thought.

He successively stepped down as chairman of Wharf Group, Media Group, Universal Group, and Cheung Kong Industries Group, also because the development of these enterprises has been on track, and Lin Zhichao also needs his own time.

Now, brothers Lin Ruihuan, Lin Ruijiang, Lin Ruihai and other brothers can handle investments in the mainland by themselves, and the government still provides high-standard reception.

Of course, Lin Zhichao still goes to the mainland from time to time for high-level exchanges to solidify the relationship. It is expected that after the turn of the millennium, Lin Zhichao will not need to frequently travel to the mainland for official business, and the same will be true overseas.

Last year (1992), Cheung Kong's normal profits reached a new high, exceeding HK$10 billion, an increase of 40%, reaching HK$10.2 billion.

The performance is gratifying!

It is expected that Changshi Group will achieve performance growth of more than 35% every year in the next year. This is the scary thing.

After a while, Lin Ruihuan reported some work to Lin Zhichao in the office.

"Dad, we have signed eight more investment projects in the Mainland in terms of beverages and food. Master Kong firmly occupies the top spot in terms of sales. Wanglaoji herbal tea has been launched in the south."

Lin Zhichao may not participate in many projects, but he must know about them.

In fact, many projects were invested under the guidance of Lin Zhichao.

Lin Zhichao continued to guide while listening: "In the instant noodle business, we need to innovate more flavors. For example, people in the southwest like to eat sauerkraut, so they can invest in a second large-scale production base in Shudu or Wuhan to specialize in the production of 'Laotan sauerkraut instant noodles' "Master Kong also needs to enrich its products, such as entering the beverage industry. For beverages, you can choose to enter tea drinks. The iced black tea Master Kong brand can also produce snacks, such as Southwest's foot soaking chicken feet, dry noodles brand, and biscuits."

Lin Ruihuan was immediately eye-opened. It was not that the beverage and food department had not developed in an all-round way. For example, Master Kong's instant noodles did have several flavors, but they did not have a comprehensive plan like his father's. Of course, there was not enough time.

He carefully recorded these planning plans on paper, and was immediately ready to put them into action, and then welcomed his father's inspection.

"Wong Lo Kat, the packaging design, advertising slogans, etc. of this brand have been finalized. But we need to continue to invest in advertising, just like Red Bull. It requires long-term publicity to create a truly best-selling drink."

"Well, we understand this."

Lin Zhichao nodded and said: "In addition to beverages and food, we have relatively large investments in infrastructure. In a few years, when the stock market is good, we can also go public and cash out part of the funds, so there is no need to worry about large investments."

Lin Ruihuan said: "If Cheung Kong Infrastructure is listed, it can definitely become a medium-sized listed company in Hong Kong. We will continue to invest in infrastructure this year. After all, the return rate of mainland infrastructure is stable."

If you want to develop the economy, you must have supporting infrastructure. When it comes to attracting investment in infrastructure, the mainland gives preferential treatment to Hong Kong businessmen. Unfortunately, few Hong Kong businessmen dare to invest in such long-term projects.

Finally, Lin Zhichao said: “You can also consider investing in the beer field!”

Lin Ruihuan nodded and said: "Fortunately, in the Mainland, we not only control the products, but also develop well in the retail field. The two are closely related and can have better synergy."

7-11, PARKnSHOP, and Watsons have all entered the mainland market. However, currently, the mainland retail industry can only form joint ventures.

Of course, a joint venture is also good. When the retail industry is liberalized in the future, Changshi will be able to occupy the market immediately.

After some communication, Lin Ruihuan became more confident about the future development of the Changshi Department. The next step would depend on his level.

As for Lin Zhichao, he usually only looks at the results!

Next, Lin Ruihuan reported: "We will increase our investment in the United States this year. There are already a large number of non-performing assets for sale in the United States. As long as there are suitable targets, we will win them."

Cheung Kong Group has a cash flow of 5 billion U.S. dollars, plus loans, which can fully mobilize 8 billion to 10 billion U.S. dollars, which is 65 billion to 80 billion Hong Kong dollars. The investment direction of these funds has been divided into two since last year. Places - China and the United States, mainly real estate.

Lin Zhichao said: "Although many large companies have moved out of Manhattan, this is our opportunity to buy office buildings and shopping malls in New York. I believe the next boom will come soon, just like the technology boom back then. Maybe this time it will It’s the internet age.”

"Internet Age?"

"Well, we don't need to study this much. As long as we know that now is the time to buy real estate in cities such as New York, Los Angeles, and San Francisco, that's fine!"

"OK"

Even if it is a son, there is no need to talk too much, as long as there is a direction.

Next, Lin Zhihao asked about the progress of the Hong Kong Central Center Building. This building is a cooperation between the Hong Kong Land Development Bureau and Cheung Kong Group holds 75% of the shares.

"Construction will start in May this year. When completed, it will become the sixth tallest building in Hong Kong."

"Okay, just use up some funds."

"Yes"

Changshi Group is now well-funded and is still looking for projects.

February.

With a high price of HK$3.65 billion, Wharf Group defeated New World, Eastern Group, Wheelock Group, CK Hutchison Properties, Sun Hung Kai and other consortiums to win the Diamond Hill King.

This piece of land is 280,000 square feet, with a total unit price of tens of thousands of Hong Kong dollars per square foot, which proves that Hong Kong's real estate is booming.

Of course, the Hong Kong Real Estate Chamber of Commerce also sent a representative, Leung Chi-kin (General Manager of New World Development), to meet with the Financial Secretary and express his concerns about the Hong Kong government’s crackdown on the property market. At the same time, major real estate developers began to provide 70% mortgages on their own, and some small and medium-sized real estate developers also Following this, some banks quietly implemented the 70% mortgage rate.

For a time, the "80% to 90% mortgage rate" formulated by the Financial Secretary and the Banks Association was shaky and useless!

In the face of huge profits, the Hong Kong Real Estate Chamber of Commerce has shown its claws and continues to fight against the Hong Kong government!

Although Cheung Kong Group tried its best to stand behind and refrain from harsh words, it has always been on the side of the Real Estate Chamber of Commerce. At present, the annual supply of housing of Cheung Kong Group is probably in the range of 20 to 25%, so if you don’t follow everyone, you will have to drown Lin Zhichao.

The other side.

A total of seven consortiums bid for the local fixed-line license, and it was eventually won by three consortiums: Hutchison Telecommunications, Sun Hung Kai Group, and New World Development.

New World Development is the dark horse this time. It originally only had paging business and failed to win the wireless phone license in 1990. Now, it has successfully entered the telecommunications industry, which can be said to be a good start. (End of chapter)