On March 18, Cheung Kong Group released its annual performance report, and obtained a profit of 1.05 billion Hong Kong dollars last year (1979), including 310 million Hong Kong dollars of non-recurring profit (gold speculation), and announced that it would receive a dividend of 0.32 Hong Kong dollars per share, involving 182 million Hong Kong dollars.

For a time, the market value of Cheung Kong Group immediately exceeded 10 billion Hong Kong dollars, rising towards a higher market value. Cheung Kong shareholders smiled happily and said that Lin Zhichao was the most profitable entrepreneur.

Cheung Kong Group.

In his office, Lin Zhichao received the chairman of the board of directors and president of the 'Hongkong Electric Company', Mr. Bruce (British).

In fact, despite the fact that Bruja is the chairman and chief executive of HK Electric, he is actually just a part-time worker, because HK Electric is a publicly listed company. If a company acquires 34% of HK Electric's shares, it will be able to obtain the chairmanship of the board.

HK Electric is a good company, but Lin Zhichao is not in a hurry to buy it.

His acquisitions of Wharf Group and Hutchison Whampoa were all with the idea that they must be acquired, so it was inevitable that the move would be big. And the next acquisition, he is not so urgent, after all, he is not selling antiques, with the idea that he must buy.

Bruca quickly explained: "Sir Lam, I wonder if you are interested in HK Electric's old power plant project in North Point?" ”

Lin Zhichao smiled: "Of course! HK Electric's site in North Point has great potential for the development of large-scale private housing estates and commercial portions of the hotel, and it is a great honour for us to work with Cheung Kong Group. ”

Sure enough, it is the shadow of the famous tree, and due to the credibility and influence of Cheung Kong Group in the field of real estate, many enterprises have come to seek cooperation.

These enterprises include Nanhai Yarn Factory, Nanyang Yarn Factory, Yi Nan Industrial, Kwong Sang Hong, etc., they have abundant land resources but no real estate development experience, so they have sought cooperation with Cheung Kong Group.

Cheung Kong Group only needs to come up with a sum of money to make the foundation, and then only one year later, it can "fight to raise the war" through the way of "selling real estate" and obtain considerable profits.

At the same time, Cheung Kong Group still has 1.3 million square feet of reserve land in its hands, which can build more than 10 million square feet of residential floors, and also owns 300,000 square feet of commercial land in Admiralty, which can build more than 5 million square feet of commercial buildings.

Brujia then said, "It seems that Sir Lin has studied that piece of land!" ”

Lin Zhichao said: "I have indeed studied, after all, it is difficult not to be noticed that there can be such a large land in the urban area, and it is idle. ”

The 200,000-square-foot site was the site of HK Electric's former power plant, which ceased generating electricity in the late 70s as the city became more prosperous and people wanted to protect the environment.

In fact, Brujia personally came to the door to ask for cooperation, in fact, he also tested whether Lin Zhichao had ideas about HK Electric. Although he is not a shareholder, he also wants to be aware of his fate. What's more, if Lin Zhichao intends to buy HK Electric, he might as well sell one in advance, and he can continue to be competent as president in the future.

Seeing that Lin Zhichao did not look like a planned acquisition, Brujia quickly discussed with Lin Zhichao the general development intention of the 'Old Site of the North Point Power Plant'.

In 1968, HK Electric built a fully computerised power plant in Ap Lei Chau to generate electricity from oil. Together with the North Point Power Station, there are two power plants that generate electricity. In response to Hong Kong's increasing demand for electricity, in September 1978, the Hong Kong government officially approved HK Electric to build a larger power plant on Lamma Island.

The North Point Power Plant was shut down in 1979 and the Ap Lei Chau Power Plant will be shut down in the mid-80s.

"According to the size of the land and the surrounding plan, it is almost possible to build 14 residential buildings and 1 hotel building, and the city can be surrounded in a square." Lin Zhichao said.

"The land repair fee for this land should be a lot of money, right?" Brujia said.

"It should be fine! At present, Hong Kong's population has increased to more than 5 million, and the demand for housing has increased significantly, and the Hong Kong government is aware of this situation, so it will not be embarrassed. Moreover, I am currently discussing with the Hong Kong government the land compensation fee for the Whampoa Dockyard, which will make the land a little cheaper. Lin Zhichao said calmly.

He predicted 2,400 residential units on this site, each of which was 450~1,250 square feet, with a total floor area of almost 180~2 million square feet. For residential properties alone, according to the average price of 1,000 yuan per square foot next year, you can earn 2 billion yuan.

There is also a hotel building, which is worth at least more than 500 million, as well as shopping malls and other properties, so the total sales can reach more than 2.5 billion. In any case, Cheung Kong Group can guarantee a profit of at least 400 million.

Of course, Lin Zhichao intends to carry out the 'sale' as soon as possible, and cannot delay until after 1982, otherwise the profit will be reduced. Of course, 1982 could also be sold, but not until the second half of the year.

Time is certainly sufficient, and it usually only takes nine months to get the land before you can start getting the pre-sale permit. 2,400 residential units, enough to sell out in one year.

"Mr. Lin really deserves to be a veteran in the real estate field, this project is in your hands, and it will soon take shape!" Bruga praised.

"I'm just planning roughly, but we have a lot of real estate professionals in Cheung Kong Group, and we can go according to the plan. If we cooperate, HK Electric's profits will rise sharply next year and later! ”

"Haha, that makes sense!"

The two sides soon reached a preliminary cooperation agreement, and the rest was left to his subordinates.

This project is the 'City Garden' large housing estate in the previous life, and the hotel is called the 'City Garden Hotel'.

When Bruga left.

HK Electric is not cheap, if it is acquired at present, it will be at least two or three billion Hong Kong dollars to obtain 34% of the equity, that is, the total value is 70~10 billion; Because HK Electric's annual profit is also six or seven billion, and it is still growing.

Can't rush!

Lin Zhichao quickly extinguished the thoughts in his heart, first of all, he had shown himself too aggressive in the past two years, and he should take a break for a few years; Secondly, with so much cash, Hutchison Whampoa couldn't take it out, and Cheung Kong's cash flow was almost there; In the end, it's ultimately your own anyway, so why rush for a while.

In the second half of the year, Hutchison Whampoa also announced its annual financial report, with a profit of 480 million Hong Kong dollars last year, including a non-recurring profit of 120 million Hong Kong dollars, which stunned industry professionals.

After all, Hutchison Whampoa's profit in 1978 was less than 260 million, and now it has soared by 80%, which can be described as leaps and bounds. The credit is widely attributed to Lin Zhichao, who officially started as the ex officio chairman of the board in 1979.

Meeting room at Hutchison Whampoa.

All the senior executives looked at Lin Zhichao with respect, and at this time, everyone clearly felt that the chairman of the board of directors had further grasped the management of Hutchison Whampoa. The more obvious change is that President Wei Li seems to be quite cooperative.

This made Richardin a little anxious, originally counting on the discord between Wei Li and Lin Zhichao before he had the opportunity to become CEO; Unexpectedly, the two seem to have reached some kind of tacit understanding.

After the meeting began, Lin Zhichao took the initiative to say: "The retail business of Cheung Kong Group and the retail business of Watsons overlap somewhat. Therefore, I plan to merge RT-Mart Supermarket and ParknSHOP Supermarket into Watsons. After the merger, the two supermarkets will surpass Wellcome Supermarket in scale, which will be a good opportunity for full development, and completely open the gap with Wellcome Supermarket in one fell swoop. What do you think? ”

Although he is the majority shareholder of Hutchison Whampoa with 46% and the chairman of the board of directors, he is relatively modest to consult everyone every time. Because he knows that most of the management of Hutchison Whampoa are foreigners, and everyone is not tacit enough now, so don't be in a hurry.

With annual retail sales of over HK$3 billion, A.S. Watson is the largest retail group in Hong Kong. Lin Zhichao also plans to hand over the 7~11 convenience store to Watsons in the future, but he will have to wait for Watsons to be privatized by Hutchison Whampoa.

Willy then said: "I think the merger is inevitable. In the supermarket field, Wellcome, ParknSHOP, and RT-Mart ranked first, second and third respectively, but the gap was not very large. If RT-Mart and ParknSHOP merge, it will surpass Wellcome Supermarket by a lot. ”

Subsequently, no one objected either, after all, this is obviously a good thing.

At this time, Xia Boyin said: "7~11 convenience store is the largest convenience store in Hong Kong, more than the second place OK convenience store has a lot of share, if Cheung Kong Group sells RT-Mart, then the retail business is only 7~11, and Cheung Kong Group is not good at trade." ”

The implication is that 7~11 convenience stores should also be sold, anyway, they are your own business.

Lin Zhichao smiled: "Don't rush this first!" Because the business does not coincide, Watsons rashly took over, which affects the development of 7~11 convenience stores. However, the two management can communicate more and form a mutual sharing of resources to prepare for future mergers. ”

It's just taking the bait!

Hutchison Whampoa also has a lot of senior Chinese staff, but it is not up to the top level. These senior staff are a cornerstone for Cheung Kong Group to completely take over Hutchison Whampoa in the future, and now that the retail field is now linked, it will naturally be very beneficial to Cheung Kong Group.

The foreigners in the conference room did not doubt him, and they all agreed with this point of view, where did they have so many ways.

The next meeting once again became Lin Zhichao's home field, and he arranged the real estate business. The Aberdeen Centre, with an investment of $800 million, should be sold as soon as possible; The land compensation fee for the Whampoa Dockyard continues to be negotiated with the Hong Kong government, but the design plan can be carried out; The rest of the real estate projects also have to be sold as soon as possible.

Of course, Hutchison Whampoa's business is very integrated, and the proportion of real estate business is not particularly large.

In the end, Lin Zhichao arranged another major investment: "Recently, international gold has plummeted by more than 140 US dollars per ounce, and has fallen below 500 US dollars per ounce. I think this is an opportunity, so I suggest that Hutchison Whampoa take out another 200 million Hong Kong dollars to buy the gold spot as a financial investment project, and wait until it returns to 600 US dollars per ounce before releasing it. ”

Richardin took the lead in saying: "This gold has skyrocketed and plummeted, and it is very risky, should we be cautious, such as investing 100 million Hong Kong dollars." ”

He didn't directly object, because now Wei Li seems to have reached a tacit understanding with Lin Zhichao.

Lin Zhichao said: "It is precisely because of the collapse that I believe that gold cannot be lower in a short period of time, at least before the US election, gold is very likely to rise again to $600 per ounce, because the US economy is stagnant, gold is what everyone is keen to invest in." ”

Wei Li said: "I don't think it's risky to invest 200 million Hong Kong dollars, this is a spot, and gold is indeed more valuable." ”

In January and February, gold was above $600, and even rushed above $800 in January (only one day); But after March, gold plummeted by more than $140.

The reason for Mr. Lin's confidence is that he believes there are still a few months left this year, and gold is more than $600 per ounce. After all, he still has 60% of his spot gold unsold.

This investment, again passed very quickly.

In this way, Lin Zhichao is confident that Hutchison Whampoa's profit this year will reach more than 500 million Hong Kong dollars. Because there are many places to spend money in the follow-up Hutchison Whampoa, it is necessary to accumulate more energy.

In the office, Lin Zhichao received the visiting Chen Zengxi, and the two chatted on the sofa.

"Mr. Lin, what do you think about the bidding for the nine stations in the third phase of the subway?" Chen Zengxi asked.

The first and second phases of the Hong Kong MTR have been fully opened, and the third phase of the MTR is now under construction. In fact, these three phases are all one line, but they are only being built and opened in sections.

The first phase, Central-Admiralty-Tsim Sha Tsui, opened in October last year; The second phase, Tsim Sha Tsui – Jordan – Yau Ma Tei – Mong Kok, was opened in December last year.

The third phase is Shek Kip Mei - Kowloon Tong ——— Ngau Tau Kok - Kwun Tong, with a total of nine stations.

Recently, the MTR Corporation has tendered for the development rights of the properties above these nine stations, involving eight commercial towers and 8,000 residential units, with a median floor area of up to 7 million square feet.

Lin Zhichao said with a smile: "Cheung Kong has recently cooperated with Nanhai Yarn Factory and HK Electric and other enterprises in many real estate projects, so for this nine-station subway project, I do not plan to bid. Looking at Chen Sheng's appearance, he plans to show his strength again, I wish you all the best in advance! ”

The two companies that have the closest cooperation with the MTR are Cheung Kong Group and Hang Lung Properties. The former cooperated with Chater Station and Admiralty Station on the roof, and also participated in the Mong Kok Station on the cover (10%); The latter won the development rights of the superstructure of the Kowloon Bay Vehicle Repair Factory (Telford Gardens for 5,000 residences) and the development rights of Mong Kok Building, which dominates the superstructure of Mong Kok Station.

Now that Lin Zhichao said that he had withdrawn, Chen Zengxi was overjoyed, but he still said politely: "Cheung Kong Group has an excellent reputation, attracting cooperation from many enterprises, which is admirable." However, the development rights of these nine stations, I calculated, the total cost is about 7 billion, and the sales can be as high as 18.3 billion. ”

He wants to be dominant, so it's better for Cheung Kong Group to join in.

Lin Zhichao said: "It's better not to participate!" I believe that there are many real estate companies that have ideas for this project, and since Cheung Kong Group already has enough projects in its hands, then of course it is better to let it be better for everyone. ”

Chen Zengxi nodded and said, "Okay, Lin Sheng is thoughtful and admired." ”

Of course, he would not suspect that Lin Zhichao was avoiding risks. After all, Lin Zhichao also said that currently cooperating with six or seven companies to develop their land is not to tighten the front.

But in fact, the reason why Lin Zhichao did not participate in the shares was because he knew that the project was risky. Because the station cover of the nine stations was signed one after another, and it would be good to be able to get a station cover in mid-1982, then it would be lost later.

In the previous life, Hang Lung lost 400 million in tart subscription fees, and other shareholders naturally also lost.

Next, the two discussed the matter of 'Amoy Garden', which will be sold out this year, and is expected to bring a total profit of more than 200 million yuan to Cheung Kong, Hang Lung, and Wharf, and everyone can be said to have made a lot of money.

Finally, Chan asked, "Mong Kok Centre will be launched in June, does Lam have any suggestions and ideas, as far as I know, Mr. Lam attaches more importance to collecting rental properties?" ”

Mong Kok Centre is the development right on the ground in Mong Kok, which has only 22 floors but a full 500,000 square feet of commercial area.

Lin Zhichao originally had no idea, but Chen Zengxi reminded him - he could choose to speculate in the building. If you hold it until the first half of next year, you can easily get a profit of more than 150 million Hong Kong dollars.

In fact, the building in Central is the most hyped, but Lin Zhichao has no goal. He has some high-quality mansions in his personal hands, but he is reluctant to sell any of them.

Anyway, there is no shortage of money, so let's keep it and collect the rent steadily!

"Cheung Kong Group can consider winning it and discuss it with the general shareholders later."

Chen Zengxi said: "No problem! ”

He took the initiative to say it, and he also did what he liked and befriended Lin Zhichao; At the same time, it can also collect rent cash at one time, so that shareholders can save worry and effort.

At the same time, Hang Lung Properties is preparing to acquire Amoy Da Huatong to develop its remaining land; However, the 'Amoy Garden' of the early cooperation has the participation of Cheung Kong Group, and Chen Zengxi is also worried that Cheung Kong Group is also eyeing this piece of fat.

Therefore, give Lin Zhichao a 'benefit' first, and they have no loss. In this way, Hang Lung Properties' participation in the acquisition of Amoy Da Huatong (a company that produces condiments such as soy sauce factories) has fewer opponents.

In fact, Lin Zhichao did not plan to buy Amoy Huatong, but he recently contacted He Tian of Lixing Development, preparing to acquire a 40% stake in the company and participate in its property redevelopment project.

Li Xing Development was listed in 1972, and He Tian was the chairman of the board of directors, which was a real estate enterprise that raised 50 million yuan that year; But He Tian is not a professional real estate after all, so this company has developed for many years, and its market value is only more than 300 million Hong Kong dollars, and there is little growth. Corporate conservatism is the main reason.

In this acquisition, Lin Zhichao adopted the model of issuing new shares to acquire Lixing Development. After all, in the face of 11 billion Cheung Kong Group, the proportion of new shares issued is not large, and Lin Zhichao himself still has 68% of the shareholding (diluted).

Compared with the heads of other listed companies, Lin Zhichao's shareholding has always been very high, because he has fewer rights issues and new shares, and the company itself has always been huge, and it has reached a critical value in the local market.

"Boss, Mr. Du Huilian is here!" Zhou Fuzhao walked into Lin Zhichao's office with a foreigner.

Lin Zhichao stood up and welcomed: "Philip"

To Huilian is a Chinese name, his English name is Philip Tose, these foreigners come to work in Hong Kong, they will take a Chinese name to adapt to the local environment. Of course, many people in Hong Kong also have English names, including Lin Zhichao.

The three of them then sat down on the sofa, at this time Du Huilian was still the head of the British Vickers Securities in Hong Kong, and the company had not yet been acquired by IWC. However, last time, Cheung Kong Industrial Group bought Hong Kong stocks worth 300 million yuan and invited Du Huilian as a staff officer.

"Philip, Cheung Kong Group is going to set up a $100 million fund to invest in the London stock market, so I would like to ask you as a staff officer to let the British Vickers Securities be the securities company."

Du Huilian was surprised and said: "Mr. Lin is more optimistic about Prime Minister Thatcher's policy? ”

In his language, in fact, many people know that Lin Zhichao has a close relationship with Thatcher, and he will be received every time he goes to London.

Lin Zhichao nodded and said: "Yes, as far as I know, the Thatcher government is more inclined to a free economic market, so I am optimistic about the future of the British securities market." ”

After thinking about it, Du Huilian said: "In terms of market returns, Hong Kong stocks have the greatest potential, why doesn't Mr. Lin focus on Hong Kong stocks, and the proportion of investment in the London market is lighter." ”

Lin Zhichao said: "I also have a lot of private investment in the Hong Kong stock market, so the market can't accommodate it, so I can only let Cheung Kong's funds invest in the London market. ”

Du Huilian nodded, and at the same time he also thought that this person must have bottomed out Hong Kong stocks in the mid-seventies.

The reason why Lin Zhichao asked Cheung Kong Group to invest $100 million in the London stock market is also a strategic arrangement, the first is that the Hong Kong dollar will depreciate in the next three years, and the second is that Cheung Kong Group will invest in real estate projects in London, so make a little money from the stock market first.

In the 80s, the index of the British stock market rose by about 300%, and the consumer goods stocks were around 400%, so the return was very high.

The two sides quickly reached a will, in fact, Lin Zhichao did this, naturally he was also recruiting talents. Although Du Huilian will not directly work for Lin Zhichao, just like Li Yeguang's lawyer, he will not refuse the solicitation of a rich man, and he will not do less work, but he also has his own career.

(End of chapter)