The birth of the Hong Kong Island family

Time flies and it’s mid-October in a blink of an eye.

In the conference room of the Yangtze River Industrial Group, Lin Zhichao was having a meeting with the members of the listing preparation working group, which were actually the heads of various departments; in addition, Tang Caiyun and Lin Ruihuan were allowed to attend.

Lin Zhichao made the final plan: "'Cheung Kong Holdings' will officially replace 'Cheung Kong Holdings' from January 1 next year, with net liabilities of HK$50 million. Its 20 properties are expected to be sold out in two years, and the proceeds will be used for acquisitions. In terms of land rentals for Victoria Harbor Real Estate, it includes Walden Building, Xintiandi Building, Miramar Shopping Center, Miramar Hotel, Lok Fu Building, and Raffles City (Singapore, opening on Christmas). If it is listed, it will also need to develop the old naval dock site. Raffles City'."

Huang Changhong also said later: "According to estimates, 'Cheung Kong Group' will still have a profit of HK$100 million next year, and the funds raised from the listing will not be less than HK$200 million."

He is still too conservative. Lin Zhichao thinks that the profit will be at least around 150 million, and the capital raised will not be less than 500 million Hong Kong dollars (25% public shares). This is because real estate will be even more popular next year, and more importantly, the stock market will be hot, and fundraising will be greatly overvalued.

Although the assets of the branches of the Yangtze River Industrial Group are not huge, compared with other real estate companies, they are definitely considered giants.

In the previous life, Dachang Real Estate (Chen Detai) raised 300 million yuan, and Hang Lung raised 200 million yuan. These are the two companies that raised the most money; but their assets are naturally dwarfed by the "Cheung Kong Industrial Group" in this life.

Today's Miramar Hotel and shopping mall of the Cheung Kong Holdings Group, if listed separately, can be listed as the "Five Real Estate Tigers"; not to mention, there are also commercial assets such as Singapore's Raffles City with an investment of about 200 million.

Even when it comes to 'developing real estate projects', Lin Zhichao still came up with 20 projects. This level is no less than that of Sun Hung Kai Properties, and the scale is similar.

Finally, there are other projects, including: Poly Construction, Anderson Daya Quarry, Yangtze Finance, 7~11 Convenience, 50% equity of Café de Coral, Doll Noodles, and Red Bull. They are all high-quality assets.

Lin Zhichao said: "Okay, let's finally sort out the separation of Yangtze River Industrial Group and Victoria Harbor Real Estate. The details must be in place. After listing, all aspects of the company will be subject to public supervision, and everyone must adapt to being a listed company. Executives, don’t imitate the Chinese banks in Hong Kong.”

It is a common problem among Chinese banks in Hong Kong that there is no distinction between public and private matters.

"Yes, boss!"

Everyone was surprised that the boss would emphasize this.

You know, although Yangtze River Industrial Group said it was preparing to go public, it was actually not a Lin family company, and it was just the boss's word.

In fact, Lin Zhichao is just talking. After the listing, he does not have the final say in the company.

After the meeting.

Lin Zhichao returned to the office and read the newspaper on his desk. A piece of news in the morning made him think a little.

Next Monday, the United Nations will hold a meeting to vote on China's entry into the United Nations.

This news is what Lin Zhichao is thinking about.

Of course, he is not a politician, and what he cares about is not the matter itself, but its influence.

At the same time, the Hong Kong stock market has surged since August, with the Hang Seng Index approaching 400 points.

"In this era, China's entry into the United Nations is bad news for the Hong Kong stock market. In addition, the Hang Seng Index is now close to 400 points, which is obviously too high. After all, next year and the beginning of the next year will be the strongest time for the stock market."

After a simple analysis, Lin Zhichao decided to ‘sell high and buy low’ on some stocks.

Not a moment.

Chen Zhiyuan, the newly appointed deputy general manager of Victoria Harbor Real Estate, came to the office.

Chen Zhiyuan has worked for Cheung Kong Industries for fifteen years and can be regarded as an old retainer. Now he controls the private property of the Lin family, which shows that Lin Zhichao trusts him very much.

"Is the Victoria Harbor Real Estate work straightened out?"

Chen Zhiyuan immediately said: "It's straightened out. We will divide the assets into two parts: real estate and securities to ensure that every penny will not be missed. The staff of the leasing department account for a large proportion of senior staff. All contracts exceeding 10,000 Hong Kong dollars , they are all in charge of the securities department.”

Lin Zhichao nodded. After all, they all came from Cheung Kong Industries, and there was no mediocrity.

The leasing department has always been very important to Lin Zhichao, because it involves factors such as 'negotiation', 'important customers', 'not renting to blacklisted/uncredited customers', etc. Therefore, senior staff personally bear contracts of more than 10,000 yuan. very important.

"In this way, I plan to sell half of the market value of the stocks of two cooperative brokerage companies, and find two securities companies with good credit later. You can arrange to sell half of our stocks within two weeks, that is, ten working days. "

Lin Zhichao carried out "sell high and buy low" on the grounds of increasing cooperation with securities companies.

And every time after selling high and buying low, he would not look for his previous partner to "suck in again."

The reason is very simple, so as not to let others see his ‘magic operation’!

For example, the first time he 'sell high and buy low' was after March 1970. At that time, he predicted that the United States would send troops to Cambodia, which would affect the stock price. As expected, the Hang Seng Index fell by more than 160 points from 190 points; and Lin Zhichao would withdraw funds ( Sell ​​only half of it) and give it all to the new partner-Feng Jingxi.

But this time, Lin Zhichao was very confident (the growth rate was too fast, it has risen by about 90% this year; China's entry into the United Nations is not good news for the Hong Kong stock market at the moment); so the two partners withdrew half of the money and found another two to take over. This half.

Chen Zhiyuan didn't think much and just said: "The current total market value of our stocks is 260 million, and half of it will be withdrawn within ten days, which is equivalent to selling 13 million Hong Kong dollars every day. The current daily trading volume is about 70 to 90 million, there will be a certain Impact."

This year’s total transaction volume is expected to exceed 15 billion, which is actually better than next year’s 45 billion transaction volume (which will be higher).

This is because there are currently very few listed companies in Hong Kong, probably just over 100. Next year, the number of listed companies in Hong Kong will probably exceed 200.

There are few stocks this year, but there is a lot of money in Hong Kong, showing the level of "money is looking for stocks".

Lin Zhichao said: "It doesn't matter, the impact won't be too big, the market is booming now!"

Chen Zhiyuan said: "Okay, I will make arrangements right away."

The original investment of 30 million to buy the bottom has now become 260 million, more than eight times;

The Hang Seng Index has only increased more than 6 times (60 to 390 points).

It is still very profitable to sell high and buy low, and Lin Zhichao's stock selection is very good.

"Boss, Jardine Matheson opened a convenience store called 'OK' in Central, and it also obtained the regional agency rights for American convenience store brands." Retail Department Manager Lin Shaodong reported the news.

Lin Zhichao was a little surprised. In his previous life, the earliest convenience store in Asia was the 7-11 convenience store joined by Japan in 1973. In Hong Kong, it was only in the early 1980s that Jardine Matheson operated a 7-11 convenience store. This OK convenience store seems to be a Li \u0026 Fung convenience store. Group's agent.

In this life, Cheung Kong Industrial Group opened four convenience stores in 1969, and then opened 4 to 55 stores every year. Now it has 13 7-11 convenience stores, and the business of each store is very good, because of the choice of The addresses are very good.

"This is because Jardine Matheson is jealous!"

Lin Shaodong nodded and then said: "Jihe Matheson has rich experience in wholesale and retail, trade and other fields. Now they are jealous of our convenience store business and have become our biggest competitor. We have to pay attention!"

Jardine Matheson already has rich experience in the retail field, and has certain advantages in the supply chain of goods. It is indeed the most difficult opponent.

Of course, 7-11 convenience stores are not without advantages. After all, the brand effect established first is a very huge advantage; what's more, 7-11 convenience stores incorporate a lot of Lin Zhichao's experience and are extremely excellent in all aspects.

Why there are only 13 stores in three years? It's not that Lin Zhichao doesn't dare to take risks, but that he pursues "excellence" and strives to achieve the ultimate in location, goods, services, etc. of each store.

Because of this, the turnover of the thirteen stores today is very high, and none of the stores is so-so.

Of course, due to the development level of Hong Kong's economy, Lin Zhichao also deliberately wanted to consider the impact of the economic level through a slow store opening speed. After all, convenience stores can only be opened in cities with good economic development. For example, in the previous life, Beijing, Shanghai, Guangzhou and Shenzhen were the battlegrounds for convenience stores.

After thinking for a while, Lin Zhichao said, "What strategies and countermeasures do you have?"

He has some ideas in his mind, but he is now used to gradually delegating power to his subordinates when the company develops to a certain extent. Lin Zhichao was very involved in the early preparations for the establishment of 7-11 convenience stores, but has reduced his intervention in the past year or so.

Lin Shaodong said seriously: "Our 7-11 convenience store already has a certain reputation, and OK convenience store has just started, so I suggest increasing the speed of opening stores. Every year, the speed of opening stores will at least double, with 8 to 10 Development at the speed of home.”

Lin Zhichao said: "In this case, we have to consider the level of the surrounding economy. After all, convenience stores are suitable for opening in places like metropolitan cities and cities that never sleep. If we open 8 to 10 stores every year, there is a high chance of losing money."

Lin Shaodong said: "It is indeed possible to lose money. If this happens, my suggestion is to close it after one year, indicating that there is a problem with the location selection."

Lin Zhichao nodded. He agreed with this point. If the convenience store does not make money, then the unprofitable convenience store must be closed as soon as possible, which shows that the consumption level in the surrounding area is not high.

"In this way, we will open 6 to 8 stores per year. Let's try this first. Jardine will never be able to reach this speed. In addition, we need to link up with Japan's 7-11 convenience stores. I will communicate with Momofuku Ando later. "

Linked with Japan's 7-11, at least there is a channel for goods, and some Japanese products are still very good. At the same time, both parties can sit together and learn from each other.

"OK"

Lin Shaodong suddenly became very motivated. His competitor was Jardine Matheson, which couldn't help but make people excited.

In Hong Kong, the only Chinese companies that can compete with foreign companies are their bosses.

Then, Lin Zhichao said: "While competing with OK convenience stores, your retail department must prepare a supermarket - RT-Mart Supermarket to increase our retail base and compete with the dairy company Wellcome. While developing, , don’t forget to recruit retail talents to join us, and establish deep cooperative relationships with trading companies such as Hengchang and Li \u0026 Fung.”

Lin Shaodong looked happy, the boss was making a big move!

"Okay, we have no problem with fighting on two fronts. I will give you the preparation plan for the 'RT-Mart Supermarket' later!"

"Well, don't be afraid. We also have many years of retail experience, so there is no need to worry about funds."

"Yes, boss!"

While other Chinese-owned enterprises are still focusing on real estate, Lin Zhichao has already made the Yangtze River Industrial Group develop towards a 'comprehensive enterprise'. This is a symbol of his vision, experience and strength.

With experience and vision in the retail field such as supermarkets and convenience stores, Lin Zhichao himself can be considered a talent level, so he will naturally not be afraid of British-owned foreign companies.

Take convenience stores as an example. The 7-11 convenience store led by Lin Zhichao must be the absolute king in the field of convenience stores in Hong Kong; more importantly, the 7-11 convenience store in Hong Kong can be regarded as the best-managed convenience store in Japan. .

The reason why he did not enter Japan but let Nissin do it was because Lin Zhichao knew that this solution was the simplest and most practical.

As for supermarkets, it doesn't matter even if Wellcome Supermarket lags behind the dairy company. In the future, if Hutchison's Parknshop Supermarket is merged, RT-Mart Supermarket will still become the leader in Hong Kong.

"How is the situation of Café de Coral fast food?" Lin Zhichao asked again.

Lin Shaodong immediately reported: "The development is going very smoothly, and the imitators are not rivals at all. Nowadays, Café de Coral has 12 stores, while its biggest rival, Foxwoods, only has 4 stores, and its business is not as good as that of Coral de Coral in the same location."

Lin Zhichao thought for a while and said, "You know about the fire at Zhenbao Seafood Restaurant this month, right?"

Lin Shaodong nodded and said, "So many people died, it's so tragic!"

Lin Zhichao said: "You can send a message to Zhihao and ask him to check it out and see if Wong Lo Kat has any intention of putting it on the market. It's time to increase the assets of Café de Coral, otherwise there will be some problems in going public next year."

There are 12 Café de Coral fast food stores and one high-end Cantonese restaurant (Fullin). It is a bit difficult to list these assets.

Taibai Seafood Restaurant is a 150-foot-long new sea-painted boat that can accommodate 800 people. It was a ship built by Wong Lao Kat in the early 1960s; while Zhenbao Seafood Restaurant was a larger ship built with funds raised by Wong Lao Kat in the late 1960s. It was originally It opened this month, but I didn't expect it to be burned down this month, and so many people died.

Wong Lo Kat does not sell herbal tea. After all, the Wang family that makes Wong Lao Kat herbal tea does not have a name called Wong Lao Kat. Wong Lao Kat, who runs Taibai Seafood Restaurant, is a Chaoshan businessman and the godfather of the Ma brothers.

Wong Lao Kat had a certain status in the Chaoshan Chamber of Commerce in his early years, but his financial resources were not strong. He financed the construction of the ship that was lost this time. Now that so many people have died, his financial resources no longer allow him to continue operating.

"Okay, let me talk to him."

Lin Zhichao nodded and said: "Sit down together later and discuss the issue of the listing of Café de Coral Group next year."

Lin Shaodong said: "Okay, boss!"

He is very happy that the business he manages is so powerful. From the beginning of a convenience store, the business is now growing, which is his motivation.

Jardine Matheson.

In Old John's office, two Jardine executives, Henry Keswick and Newbigan, walked in.

John Keswick has decided to pass the throne to his eldest son Henry Keswick next year (1972), and Newbrick is his son's strongest assistant at Jardine and currently serves as managing director.

"How is the situation at the OK convenience store?" Old John asked.

"Good business, good business!" replied Henry Keswick.

Old John nodded and said: "For a long time, Chinese capital has been developing in the fields of industry, real estate, and shipping. Now Lin Zhichao has risen strongly, and the industry involves all aspects. I have to say that he is our biggest competitor with British capital. It is a pity. Yes, HSBC not only does not stand on the side of British capital, but also cooperates very closely with Lin Zhichao. Don’t they know that the person who threatens HSBC as the largest consortium in Hong Kong is not Jardine Matheson, but Lin Zhichao?”

Henry Keswick and Newbijian were both shocked. For the first time, they felt that Lin Zhichao could be compared with Jardine Matheson and HSBC.

"HSBC should not think so. After all, Lin Zhichao's shipping, industry, and real estate do not compete with HSBC. Shipping and industry are both overseas businesses, and it is impossible for HSBC to stop them. As for real estate, HSBC also Don’t do this business. What’s more, HSBC is now cooperating with Universal Group and making a lot of money. It has long forgotten the difference between British capital and Chinese capital.” Henry Keswick said.

In fact, HSBC Group is more concerned about one thing - its status as the largest financial group in Hong Kong. In the past, Jardine Matheson once hoped to acquire the Wheelock Group in the mid-to-late 1970s (the Marden family was interested in putting it on the market). Once the acquisition was successful, Jardine Matheson would surpass HSBC and become the largest financial group in Hong Kong.

Therefore, HSBC stepped in to stop it at that time and sent out profit-making companies to analyze that the two businesses overlapped a lot and once acquired, the interests of Wheelock shareholders would be lost. In the end, of course, the acquisition was not successful.

In this life, Universal Group indeed far surpasses HSBC Group. In terms of profit, Universal Group’s annual profit is almost HK$1.3-1.4 billion (including HSBC’s 13-15%); while HSBC’s annual profitability is only HK$220-250 million. (Excluding Worldwide shipping dividends, as it has not started yet).

Universal Group's profits are six times that of HSBC.

In fact, if Lin Zhichao had not led HSBC to make a fortune, he might have been suppressed by HSBC; of course, there is also one point, Universal Group is an overseas business, and HSBC does not have many means of suppression, it is nothing more than denying loans.

Of course, HSBC has no means to suppress Lin Zhichao's local business.

Yangtze River Industrial Group is an export enterprise. Yangtze River Industrial Group does not rely on banks. Lin Zhichao's industry is impeccable. What's more, Lin Zhichao has always had a very large influence, and small means are useless.

Last but not least, Lin Zhichao's company has not been listed on the market. No one knows the specific situation, only part of it.

Old John sighed and said: "The key is that Lin Zhichao is very ambitious. He will be involved in more and more industries in the future, and he is good at management."

Henry Keswick said: "Father, don't worry, our Jardines department has three listed companies, which is more convenient for development than Lin Zhichao. I plan to let Wharf acquire the Star Ferry, Hong Kong Tram, etc., and then develop Harbor City and Land. I also have the potential for planned development, and our Jardine Group is far larger than the company led by Lin Zhichao."

Seeing that his son was full of confidence, Old John said happily: "Okay, wait two more months, and you will officially take over as the chief executive of the three companies. Managing Director Newbijian, I hope you can assist Henry and continue to develop Jardine Matheson into a world-class company." enterprise."

Newbijian nodded and said, "Yes, Chairman John!"