Chapter 68 Investment in Quarry
Time flies, and more than a month has passed.
One evening in mid-March 1958, Li Hualong sat in the living room with his family chatting.
After chatting for a few words, Li Huahu asked: "Third brother, I heard that since the opening of the Intercontinental Hotel, business has been very good, what is the room occupancy rate?" ”
Li Hualong replied: "In the first month of opening, the average occupancy rate of guest rooms was about 93 percent. ”
"The accommodation fee is 20% off, and the meal fee is 9% off, which is much cheaper than the Peninsula Hotel, and the hotel is new, and the business should be good." Li Huahu smiled, "What about after the opening event?" ”
Li Hualong smiled: "The occupancy rate of the guest rooms is about 85 percent, and I am very satisfied with this occupancy rate." ”
Li Huawen said: "I feel that building an office building, or building an apartment for rent, is more profitable than running a hotel. ”
Li Huawen's words are the truth, Li Hualong knows it very well in his heart, but he is very interested in running a hotel, and said with a smile: "Running a luxury hotel, there are several office buildings under it to collect rent, these two feelings are completely different!" ”
Li Huawen joked: "I remember that you are a very pragmatic person. ”
"You can't always think about making money when doing business." Li Hualong smiled slightly, "In the future, I am rich enough, and I may also do some business that will be indebted, but can make me happy." ”
"Here's an example." Li Huahu said curiously.
"For example, running a gallery, running an antique shop."
"It's understandable, third brother, you have always liked to collect antiques, calligraphy and paintings." Li Huahu nodded with a smile and said, "By the way, Abba, a few years ago, I saw you drinking tea with a bowl from the Ming Dynasty, saying that the bowl is very rare, what is that bowl called?" ”
"It's not a bowl, it's a cup, Ming Chenghua Doucai Chicken Bowl Cup." Li Yisong replied.
"Ming Chenghua Doucai Chicken Bowl Cup, something from the Ming Dynasty." Li Huahu muttered, and asked curiously, "In recent years, why haven't I seen you take it out for tea, how much did it cost to buy that Ming Chenghua Doucai Chicken Cup?" ”
"Although the Ming Chenghua Doucai Chicken Cup is not a unique product, it is very precious, and there are very few surviving quantities. As early as the Ming Dynasty, it was very valuable. As for how much it cost to buy it, don't worry about it, it was your third brother who bought it. ”
Li Yisong said and looked around at everyone present, and continued: "Today, everyone in the family is here, let me tell you, many of the antique calligraphy and paintings in my room were bought by Hualong, if that day, I am gone, the antique calligraphy and paintings in my room are left to Hualong alone, whether I bought it or not...... Hua Wen and Hua Hu, do you have any opinions? ”
"I haven't seen it, the third brother really likes antique calligraphy and painting, and leaving it to him can be regarded as making the best use of it." Li Huawen smiled.
"I don't have a problem either." Li Huahu smiled and said, "Abba, the second brother didn't score either?" ”
"He didn't score either." Li Yisong said, "In addition to antiques, calligraphy and paintings, half of my companies and properties will be left to Huawu, and the remaining half will be divided equally between you three brothers." Also, the four of you brothers must love each other, and the incident that caused Xiao Wall must not happen to our Li family. ”
"Abba, don't worry, our brothers have such a good relationship, besides, we all have our own careers and support each other, our family's life will definitely get better and better." Li Huawen smiled.
"Abba, don't think too much." Li Hualong smiled, "You can relax, live well, you must live a long life, and see how many of our brothers have made our Li family grow and develop...... When you see the ancestors of our Li family after a hundred years, you can proudly tell them that you have given birth to four good sons, and you have glorified your ancestors! ”
"I'll live well!" Li Yisong was pleased.
"Third brother, you still know how to make a fart!" Li Huahu joked and gave Li Hualong a thumbs up with a smile.
"Ah Hu, can't you be calmer?" Li Yisong rolled his eyes and said.
"There are no outsiders here, there is no need to be serious." Li Huahu said with a smile, and then said to Li Hualong, "Third brother, you are still optimistic about the future of Hong Kong's real estate industry, right?" ”
"Hmm!" Li Hualong nodded with a smile, "I'm very optimistic, otherwise, I wouldn't have continued to invest in increasing properties." ”
The main source of Li Hualong's continuous injection of funds into Hualong Real Estate is Huayi Brothers Film Group, a film company that has been performing well in the past few years, and last year, its annual profit hit a record of 12.6 million, which is not comparable to that of Hollywood movie giants, but it is not far off.
Li Huawen interjected and asked: "Since the real estate industry will flourish, can you make money by investing in stone mining?" ”
Li Hualong was slightly stunned and said with a smile: "Big brother, I remember that you hold shares in a stone mining company, do you plan to increase your shareholdings, or do you have other plans?" ”
"I want to make a big bet on the stone mining industry. I learned that the purchase of Anderson Road Quarry, the largest in Hong Kong, cost almost 140 million. I have visited the site, this large mine is very suitable for mining with new heavy machinery, and the benefits will definitely be very good if you spend more money to buy equipment. ”
"140 million, that's a lot of money!" Li Hualong smiled, "Big brother, how much money can you come up with?" ”
"Selling most of the properties can raise 30 million." Li Huawen smiled, "Obviously, this money is not enough, and you need to borrow from the bank." ”
"You want me to vouch for you, right?" Li Hualong asked again.
"Yes. I asked my friends who work at HSBC if you are willing to provide a guarantee for a loan of 50 million, plus my own funds, HSBC can provide a loan of 60 million for this project. Li Huawen said.
"Big brother, the third brother guarantees the loan for you, and you only invest 30 million yourself, and the loan is 110 million, how much is the annual interest? Have you calculated when you will be able to pay off the loan? Li Huahu interjected and asked.
"If Hong Kong's annual growth rate of new construction area exceeds 10 percent in the next 10 years, I will definitely be able to repay the bank loan within 10 years," Lee replied. ”
Li Hualong pondered for a long time and said, "Tomorrow, I still have something to do. Big brother, if you have time the day after tomorrow? ”
"Yes."
"Then let's go to Anderson Road Quarry the day after tomorrow. If that's no problem, I'm willing to provide you with a loan guarantee of 50 million. ”
Li Huawen reminded with a smile: "Third brother, you have thought clearly, if my investment in this project fails, I can't repay the bank loan, and you need to repay the 50 million you provide as a guarantee." ”
"It's fine." Li Hualong smiled confidently, "I am very optimistic about the prospects of Hong Kong's real estate industry in the next few years. However, to make it clear, you have to pay off the 50 million guaranteed loan, and the principal and interest are all repaid by yourself! ”
"I'm very happy if you're willing to provide a guarantee, and of course I'll pay back the interest and principal." Li Huawen smiled, "Third brother, if you think this project is profitable, are you interested in participating in it?" ”
"Kind of interested." Li Hualong glanced at Li Huawen with a smile, "Big brother, how many shares can I hold at most?" ”
"As long as it doesn't exceed five percent, I want to be the controlling shareholder."
"Abba, fourth brother, you're not interested?" Li Hualong asked.
"If you want me to invest, I'll invest." Li Yisong smiled.
"Abba, you're too talkative, too." Li Huahu smiled, "I'm interested." Big brother, if you invest 30 million, then a few of us can get 40% of the shares if we invest 20 million? ”
"We set up a joint venture company and borrow money from the bank in the name of this company, so the shares can be divided like this." Li Huawen said.
"Then invest 20 million, I can come up with 5 million." Li Yisong interjected.
"I don't have much cash, but I can take a mortgage on a Holiday Inn stake in a bank, and I also invest five million." Li Huahu said, "Third brother, you invest 10 million, accounting for 20 percent of the shares." ”
"Yes!" Li Hualong nodded.
"I don't really want to sell too many properties, I can take less shares." Li Huawen said, "Otherwise, I will invest 25 million. Third brother, you invested 15 million, and you accounted for 30% of the shares, do you think it's okay? ”
"That's fine." Li Hualong said.
"No problem, then it's decided." Li Huawen said with a smile.
"Let's go to the mine first." Li Hualong said.
Two days later, Li Hualong and Li Huawen went to the barren Anderson Road Quarry, which was barren but both brothers saw a business opportunity here.
"Third child, what do you think of this quarry?" Li Huawen asked.
"I don't feel anything." Li Hualong smiled.
"What?" Li Huawen was puzzled, "Why don't you feel it?" ”
"It's not about girlfriends, it's not about appreciating antiques, what can you feel like." Li Hualong smiled.
"Listen to your tone, want to talk about a new girlfriend?" Li Huawen quipped.
"Big brother, you spare me!" Li Hualong smiled bitterly, looked at Li Huawen a few times, and retorted, "Big brother, are you envious of my Yanfu?" ”
"No!" Li Huawen shook his head and said affirmatively, "In my life, I am content to be able to marry your sister-in-law." ”
"Wouldn't that look down on the flower-hearted person?"
"There are many kinds of people with flowers, hehe, I can only admire you like this." Li Huawen smiled and patted Li Hualong's shoulder, "Don't care what others think of you, as long as you have a clear conscience." ”
"A clear conscience...... Sometimes, I feel ashamed! ”
"Don't think too much, as long as the three siblings are willing to follow you, you can treat them well." Li Huawen smiled, changed the subject and asked, "Do you want to buy this quarry?" ”
"Buy, why not buy, buy this quarry now, it will definitely be profitable!"
"That's it. Come, shake hands! Li Huawen smiled heartily.