The Industrial Giant Reborn

"Chen Sheng, Li Jiacheng from Cheung Kong Industrial just called and asked you to meet at the Presidential Suite of Mandarin Oriental Hotel at noon tomorrow. Mr. Li Jiacheng said that Mr. Hu Yingxiang from Hehe Industrial will also come with him." Came to Hehe later in the morning Chen Zhiwen from the Ji Building got An Qi's information as soon as he entered the office.

This is also the inconvenience of not having a big brother. There is no way to talk directly unless you are in the office all the time.

"Li Jiacheng, Hu Yingxiang." Chen Zhiwen thought for a while and said, "Okay, you can go back to them later, and I will go to the appointment on time."

Chen Zhiwen still felt very refreshed after stealing Lao Li's Hutchison Whampoa. Unfortunately, the other party didn't know the future, so it seemed that the refreshment was not enough.

"Okay." An Qi left after receiving the reply.

"Wait, ask the Hong Kong Telecom Company, when will a product from the United States called cellphone be popularized in Hong Kong." Chen Zhiwen said again.

"Cellphone?" Angie didn't quite understand.

"It's a wireless phone. We can carry a phone around and receive calls from others at any time." Chen Zhiwen explained: "It's probably a little bigger than a hand."

"Okay, I'll ask." An Qi nodded and agreed.

"When these problems in hand are solved, we have to spend some money to study signal technology." Chen Zhiwen thought for a while and said.

Speaking of signals, I naturally think of Huawei. This company will take more than ten years to establish, which is a bit too late. Of course, in a place like Hong Kong, researching signal technology is also a daydream, but after the opening of the mainland next door, talents in this area There are not many, and there is a high probability that there is a lack of funds for research, which matches me well.

It’s just that the signal research is too powerful, and it will be more troublesome in another forty or fifty years, but that will be a long time later. No matter what, these decades are still very useful. Besides, signal research is a high-tech industry. It is possible to develop the domestic market by relying on capital advantages in the early stage, but in the future global hegemony, there is a high probability that it will not be able to compete with the old American Qualcomm and domestic Huawei.

I know that Chen Zhiwen still has this point, but the market is huge, and a medium-sized one is still very good. In the 1990s, it was inevitable to make feature phones. Don't think about signal technology dominance, but with a foundation of technical patents, at least you don't have to be stuck too much by others.

...

The next day, Chen Zhiwen arrived at the Mandarin Oriental Hotel as scheduled.

"Chen Sheng, this is Mr. Hu Yingxiang, the chairman of Hehe Industrial. Hu Sheng, this is Chen Zhiwen, the current chairman of Hutchison." After the three met, Li Jiacheng introduced with a smile.

"Hu Sheng, I've known you for a long time." Chen Zhiwen smiled and extended his hand to shake.

"Where is it, Chen Sheng's acquisition of Hutchison has increased my prestige as a Chinese, and I have admired Chen Sheng's name for a long time," Hu Yingxiang said with a smile.

"I heard that Hu Sheng plans to build the tallest building in Hong Kong in Central? Hu Sheng's ambition is also to overwhelm Landmark!" Chen Zhiwen said with a smile.

Among the several super chaebols in Hong Kong in later generations, there was no Hu Yingxiang Hu family, but in this era, the scale of Hehe Industrial under Hu Yingxiang surpassed that of Cheung Kong. In the 1970s, the biggest achievement of Hehe Industrial was the construction of a Central super building --- Hehe Center.

The height of this building surpassed that of Landmark's Kangle Building, and it became a landmark of Hong Kong after it was completed in the early 1980s. However, at that time, Cheung Kong Holdings had acquired Hutchison Whampoa, and its scale also surpassed Hehe Holdings.

In the next few years, Hu Yingxiang invested his family's funds in the mainland to build the first expressway in China: the Guangzhou-Shenzhen Expressway, and built several large power stations in Guangdong to make up for the domestic demand for electricity and transportation at that time.

But because of this, the Hu family who invested in infrastructure in the mainland has declined a lot compared to Li Jiacheng, Lee Shau Kee, Zheng Yutong and other families who have been struggling in the real estate market. After all, infrastructure can only be said to have stable income, but the profiteering is far less than the ability to use leverage. Crazy financing of the real estate industry.

Of course, other people’s pursuits may be different. In the 1980s, the Hu family’s tens of billions of Hong Kong dollars in infrastructure investment made a great contribution to Guangdong’s economic development. Use numbers to describe.

"How can it hold down the land? The Hehe Building just added some height to the antenna, and the actual height is not comparable. Besides, the geographical location is far worse than that of the Kangle Building." Hu Yingxiang said with a smile.

"It's okay. There are still many old buildings in Central, and there are also many old government buildings. The Hong Kong government's finances mainly come from real estate auctions. These places will be released to the market sooner or later. We still have a chance at that time." Chen Zhiwen said.

"This kind of thing is Hong Kong Land's favorite. It is not easy to get it." Li Jiacheng said: "Chen Sheng, on the other hand, may have a chance to compete with Hong Kong Land."

"Hutchison says they are the four major foreign firms, but in fact, there is still a big gap with Landmark." Chen Zhiwen shook his head and said: "After Hongkong Land purchased Milk, the number of land is more, and most of them are in the core of Hong Kong Island. too much."

"So Chen Sheng wants to sell these lands with bad positions, and then change the core position in the future?" Li Jiacheng asked.

"Li Sheng has a good eye, that's what he means." Chen Zhiwen didn't deny it either. This kind of practice is also very common in the real estate industry. Who doesn't want to go to the city center when the scale grows? Ordinary people who have money want to buy a house in the urban area.

"Today, Hu Sheng and I asked you, Chen Sheng, to come here to discuss the possibility of cooperation between us." Li Jiacheng continued.

"How to cooperate?" Chen Zhiwen asked.

"I know that Chen Sheng is going to sell a lot of Hutchison's non-core land, and there are some real estate projects that are already underway. Hu Sheng and I also know the current situation of Hutchison, so our idea is that Hu Sheng and I will return If Chen Sheng establishes a joint venture company, the joint venture company will directly purchase the land, property or half of the project from Hutchison in cash, so that Hutchison can immediately obtain the funds it needs." Li Jiacheng did not rush said:

"The joint venture company is run by me and Hu Sheng, and the net profit after the operation will be distributed in proportion to the future dividends. Chen Sheng, I know you are optimistic about the future real estate industry, so in this way, if the land price rises, Chen Sheng can still get money from the joint venture company." What does Chen Sheng think of this cooperation plan to gain profits from rising land prices?"

"Sounds good, but where does the joint venture get the money from? We can't let us inject capital first, right? If I inject capital first, why sell it to you? I have already developed it myself." Chen Zhiwen asked with a frown.

"There is no need for capital injection. I will contact a syndicate of banks to obtain funds. I will use the property sold by Hutchison as collateral. After the future project is completed, we will return the principal and interest of the bank loan." Li Jiacheng said.

"Will the bank syndicate pay 100% of the mortgage funds?" Chen Zhiwen asked. Assuming that a project is sold for HK$20 million, according to market rules, if the bank is willing to pay HK$14 million, it is already very good. This is already the default situation in the banking industry. At first, Chen Zhiwen wanted HSBC to increase the loan ratio to 80%, but HSBC rejected it. Later, he found several irregular small banks, and it was barely realized.

In this way, the risk for the bank is already very high. Once the land price falls, the bank may lose everything. It is very likely that a project worth tens of millions will bring down a large bank. This kind of thing has happened many times in Hong Kong. Second-rate.

"So this requires the official seals of our three companies, that is, our three companies have to bear joint and several liabilities. If the project loses money in the end, we need to take the money back to the bank." Li Jiacheng said.

"Li Sheng's move is full of confidence that the real estate industry will rise on a large scale in the future?" Chen Zhiwen nodded and said, everything is borrowing other people's funds. As long as the real estate price rises, there will be no problem. After the project is over The profits can certainly easily cover the principal and interest of bank loans, but if the real estate price falls, it can pull everyone involved into the abyss.

"Isn't Chen Sheng the same? In the past two years, Galaxy Real Estate's investment in industrial real estate made me feel terrified." Li Jiacheng said with a smile: "But now the industrial real estate has risen by 20%, and Chen Sheng has already won."

"Yeah, I'm also very confident." Chen Zhiwen smiled, who can compare with him in confidence in the future real estate situation.

Li Jiacheng asked: "We can conduct a comprehensive review of the accounts of the joint venture company after each project is completed. What does Chen Sheng think?"

"Good idea, I will seriously consider this matter." Chen Zhiwen nodded and said.