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

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

"Retired at such a young age, I won't be like Uncle Tong, come back and wipe PG for my son when the time comes!"

"How can this be the same? Lin Ruihai served as the president of Wharf Group, but his performance outperformed his father, invested in Southeast Asia's commercial real estate book appreciation hugely, and acquired Singapore's largest commercial real estate listed company in one fell swoop. Last year, it also won a number of large-scale commercial projects in the mainland. The five sons of the Lin family are all business tycoons! ”

"It's so stakes, I thought it was Mr. Lin Zhichao who did these things!"

"Mr. Lin Zhichao was already semi-retired a few years ago, just like Uncle Tong back then. However, Uncle Tong had to go out of the mountain again the year before last, but Mr. Lin Zhichao retired directly. ”

People have sighed that 'the Lin family has a good way to teach their children', and now everyone can take charge of one side and call for wind and rain in 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, Diamond Mountain Land King will auction the 280,000 square feet of land, which can be built into a mixed-mode commercial and residential project, and is expected to build five residential buildings with a total of 1.2 million square feet (about 1,800 residences), as well as a 650,000 square feet shopping plaza." I want to participate in the auction and win this project! ”

When Lin Zhichao heard this, he said, "You can do it!" Investments in Southeast Asia will be shipped next year (1994), and the bubble there will be similar to that in Japan, and the funds will be withdrawn within two years. Throughout the 90s, it mainly developed the mainland, and then stabilized its position in Hong Kong and Singapore. After the millennium, you will have the strength to make stable investments on a global scale. ”

Lin Ruihai nodded, he would not question his father's general direction. After all, my father was a man of decades of success, and they could not be compared.

He thought for a while and said, "Father, the development of Wharf Group in Hong Kong has basically been completed. In the field of commercial real estate, it will have almost 10 million square feet of rental area; In the field of real estate development, we have not invested too much, and we will not invest too much in the future, so as not to make people think that we are a big family. So I'm wondering if I can move to Singapore in the future, not now, of course, but at least after 97, so that your grandson can move to the past. ”

Although Wharf Group has invested in the development of real estate (residential) in recent years, it has actually been a small fight, and the two large housing estates (a total of 3,500 residences) invested in another house and Yi Long Villa during this period are all in partnership with other consortia, accounting for only one-third.

Lin Ruihai can also see the outside form clearly, so he took the initiative to adopt the method of 'avoidance' in Hong Kong, and after preparing to win the king of Diamond Mountain, he gradually reduced his investment in Hong Kong.

Lin Zhichao said: "There is no need to rush this matter, it is best to wait for Hongzhi and them to grow up and gradually settle in Singapore." ”

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

The second room chief, Sun Lin Hongzhi, was born in 1977 and has been working since the turn of the millennium. At that time, it will be sent directly to the Singapore company to complete the move to Singapore. Based in Singapore, we invest globally.

In the conference room of Hutchison Whampoa.

Lin Zhichao sat in the chairman's seat, flanked by Ma Shimin and Huo Jianning, and below were two rows of foreign high-level officials. Although Hutchison Whampoa has been recruiting local talent in the past year, there is still some way to go for these talents to be promoted to the top level.

"Regarding the bidding scheme for the 'Franchise Licence for Local Fixed Telecommunications Network Services', I took a serious look at it and there is no problem! I believe that with the strength of Hutchison Telecommunications, it is not difficult to win a bid. Lin Zhichao said first.

HKT's patent for local telephones expired on 30 June 1995.

The 100% monopoly of Hong Kong Telecom (overseas fixed-line, local fixed-line) has made people very dissatisfied and has been criticized by many people. In 1987, the Hong Kong government hired Booz (a British company) as a consultant to conduct a study on the future of Hong Kong's telecommunications industry. The following year, the company filed a report. No one has read the text of the report, except that it recommends that the government break the monopoly of the existing telecommunications network.

Because of this, the Hong Kong government has decided to throw out three 'local landline' licenses for public tender. As for the 'Overseas Landline (International Long Distance) Licence, it will expire in 2006 and will not be listed for the time being.

On the other hand, Hong Kong Telecom (British Dadong Holdings) is not a vegetarian, and has resorted to a trick - first "cut the Hong Kong telephone patent into a meat bone" - that is, to cancel the Hong Kong (local) telephone charge. In this way, the battle for patent rights is undoubtedly a 'dog fighting for meat and bones'. HKT is heartbroken; The new patent winner will have tasteless food and will not be profitable for at least a few years.

So why is there a lot of bidding for the patent rights of local telephones, which are not charged?

Originally, although the right to operate local fixed-line telephone network services did not include the right to operate international telephone networks. However, when anyone makes an international call and picks up the telephone to dial the number, the message first passes through the local network before reaching the channel of the international telephone network and then being transmitted outside Hong Kong. At the same time, international telephone calls and faxes to Hong Kong are made on the same basis.

As a result, anyone who makes or receives international calls using a new network that will emerge in the future will have to pay the new network operator an average of HK$1.05 per minute for a transmission fee if the new network is directly connected to the international telephone channel, as indicated in the government tender documents.

The exact amount of the conveyance fee will be reviewed by the Hong Kong Government once a year. After the advent of the new network, the number of networks through which each call passes is different, and the interconnection charges are subject to negotiation between HKT and the new network operator.

The operator of the local network will not be profitable for a certain number of years. They are so keen to bid for local telephone patents. We are still optimistic about international telephone services after 2006. If a company does not even have the right to operate a local telephone, it will be tempted to apply for the right to operate an international telephone.

The turnover of international telephone calls in Hong Kong is growing at a rate of 23% per annum. It is impossible for any industry in Hong Kong to grow so steadily with such a large expansion factor, and the prospects are really attractive.

The most popular bidders were Hutchison, Sun Hung Kai and Nynex. Sun Hung Kai's existing fibre-optic cable television network can be used if it is licensed.

At this time, Sun Hung Kai, the three brothers worked together, and indeed developed Sun Hung Kai very well, and it was the second largest Chinese-funded chaebol in Hong Kong; First of all, it is second only to Cheung Kong Development Real Estate Developer (Residential); Secondly, it has invested in many shopping malls in various new towns, and also owns Sun Hung Kai Building and Central Plaza in Wan Chai; Finally, it obtained a cable TV network, and the first step of integrated development was sold.

"If Hutchison lays a direct line to fixed telephone subscribers and connects to the existing mobile phones and CT2 wireless network, mobile phone users will no longer need to go through HKT's network connection to make local calls. If the Hutchison network is directly connected to the international telephone channel, its subscribers do not need to make international calls through HKT's local network. In this way, Hutchison can save back the current 9 cents per minute fee for connecting to the HKT network, and the cost reduction will make us more competitive and advantageous. ”

Lin Zhichao nodded with satisfaction and said: "There are more than 50,000 CT2 wireless network users in Hong Kong, which is much better than the situation in the UK, but remember not to continue to invest." Cellular wireless networks are the mainstream of the future, and Orange in the UK is a promising company to focus on. "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 person who can make more money than Ma Shimin, and he made a series of financial arrangements for Husky and Orange in his previous life, which was a proper stroke of genius, so Lin Zhichao trusted him very much. Regarding Ma Shimin's imminent resignation, there is less reluctance.

Of course, Li Jiacheng in his previous life was also very discerning, and after selling Orange, he spent 500 Hong Kong dollars to bid for 3G in the United Kingdom, which detonated the global pursuit of 3G, and then triggered the pursuit of 3G in Germany; But at this critical moment, Li Jiacheng quickly calmed down and single-handedly announced the launch of the German 3G bid. After some series of operations, it is really a lot of money, and you can calm down afterwards.

In the next 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, and A.S. Watson's beauty business should take advantage of the rise of 'Hong Kong culture' and gradually expand its overseas market.

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

Hutchison Whampoa made a profit of 8.2 billion Hong Kong dollars last year (1992), while the port and retail business (including Watsons' manufacturing industry) almost reached more than 6 billion Hong Kong dollars.

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

He stepped down as chairman of Wharf Group, Media Group, Global Group, and Cheung Kong Industries Group one after another, also because the development of these enterprises has been formalized, and Lin Zhichao also needs his own time.

Now the investment in the mainland, Lin Ruihuan, Lin Ruijiang, Lin Ruihai and other brothers can handle it by themselves, and the official still gives high-standard reception.

Of course, Lin Zhichao still goes to the mainland from time to time for high-level exchanges to build a solid relationship. It is expected that after the millennium, Lin Zhichao will not have to go to the mainland frequently for official business, and the same is true overseas.

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

The performance is gratifying!

It is expected that Cheung Kong Group will be able to achieve a performance growth of more than 35% in the next year, which is the terrible part.

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

"Dad, our investment projects in the mainland have signed eight more beverage and food aspects, and Master Kong firmly occupies the first place in sales, and Wang Laoji herbal tea has been launched in the south."

There are many projects that Lin Zhichao can not participate in, but he can't be unaware.

In fact, many projects are under the guidance of Lin Zhichao to complete the investment.

Lin Zhichao listened while continuing to instruct: "In the instant noodle business, we must innovate more flavors, such as the southwest region likes to eat sauerkraut, then you can invest in a second large-scale production base in Shudu or Wuh, specializing in the production of 'Laotan sauerkraut instant noodles'.

Lin Ruihuan suddenly opened his eyes, the beverage and food department is not without comprehensive development, for example, Master Kong's instant noodles do have several flavors, but there is no comprehensive planning like his father, of course, there is no time yet.

He carefully recorded these plans on paper, and immediately prepared to put them into action, and then greeted his father's inspection.

"Wang Laoji, the packaging design and advertising slogan of this brand have been finalized. But we need to be advertising, all the time, just like Red Bull, it takes a long time to create a really best-selling drink."

"Well, we get that."

Lin Zhichao nodded and said: "In addition to beverages and food, we have invested relatively much in the field of infrastructure, and in a few years, we can also go public to cash out some of our funds while the stock market is good, so there is no need to worry about investing a lot." ”

"If CKI is listed, it will definitely become a medium-sized listed company in Hong Kong, and we will continue to invest in infrastructure this year, after all, the return on infrastructure in the mainland is stable," said Lam. ”

If you want to develop the economy, you must have supporting infrastructure, and the mainland has given preferential treatment to Hong Kong businessmen in attracting investment in infrastructure, but unfortunately few Hong Kong businessmen dare to invest in such long-term projects.

Finally, Lin Zhichao said: "In the beer field, you can also consider investing!" ”

Lin Ruihuan nodded and said, "Fortunately, in the mainland, we not only control the product, but also develop well in the retail field, and the relationship between the two is close, so there can be better synergy." ”

7-Eleven, PARKnSHOP and Watsons have all entered the mainland market, but at present, the mainland retail industry can only be a joint venture.

Of course, the joint venture is also very good, and when the retail industry is opened up in the future, Cheung Kong will be able to occupy the market as soon as possible.

After some communication, Lin Ruihuan has a better idea of the future development of Cheung Kong, and the next thing is to rely on his level.

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

Next, Lin Ruihuan reported: "Our investment in the United States has increased this year, and there are already a large number of non-performing assets to be sold in the United States, as long as there is a suitable target, we will take it."

Cheung Kong Group's cash flow of 5 billion US dollars, plus the ability to borrow, can fully use 80~10 billion US dollars, that is, 65 billion ~ 80 billion Hong Kong dollars; Since last year, the investment direction of these funds has been divided into two places - China and the United States, mainly real estate.

Lin Zhichao said: "Don't look at a lot of big companies moving out of Manhattan, but this is our opportunity to buy New York's office buildings and shopping malls, and I believe that the next boom will come soon, just like the technology boom back then, maybe this time it will be the Internet age." ”

"The 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 New York, Los Angeles, and San Francisco!"

"Okay"

Even if it's a son, there's no need to talk too much, just have a direction.

Next, Lin Zhihao asked about the progress of the 'Central Building, Hong Kong', which is a 75% stake in the Hong Kong Land Development Authority.

"Construction started in May this year, and when completed, it will be the sixth tallest building in Hong Kong."

"Okay, just enough to consume some money."

"Yes"

Cheung Kong Group is now well-funded, and the project is still being searched.

February.

With a high price of 3.65 billion Hong Kong dollars, Wharf Group defeated New World, Oriental Group, Wheelock Group, Cheung Wo Real Estate, Sun Hung Kai and other consortiums to win the King of Diamond Mountain.

The land is 280,000 square feet, with a total unit price of tens of thousands of Hong Kong dollars per square foot, which can be said to confirm the hot real estate in Hong Kong.

Of course, the Hong Kong Real Estate Association also sent a representative Leung Chi-kin (General Manager of New World Development) to meet with the Financial Secretary to express his concern about the Hong Kong government's crackdown on the property market. At the same time, major real estate developers began to provide 70% of mortgages on their own, and some small and medium-sized real estate developers also followed, which led to some banks also quietly implementing 70% mortgages.

For a time, the 'eighty or ninety percent mortgage' formulated by the Financial Secretary and the Association of Banks was crumbling and useless!

In the face of huge profits, the Hong Kong Real Estate Association has shown its minions and is still working against the Hong Kong government!

Although Cheung Kong Group strives to stand behind and does not speak sharp words, it has always stood on the side of the real estate chamber of commerce. At present, the annual supply of Changshi Group's residences is about 20~25%, so if you don't follow everyone, your saliva will drown Lin Zhichao.

The other side.

The local fixed-line license was bid for by a total of seven consortia, and was finally won by Hutchison Telecommunications, the consortium of the Sun Hung Kai Group, and New World Development.

New World Development was the dark horse of this time, originally only had paging business, and failed to win the bid in the wireless telephone license in 1990; Now, it is a good start to enter the telecommunications industry. (End of chapter)