Reborn as a tycoon in Hong Kong

Not many days have passed in April. Last month, at the invitation of the Mainland's Foreign Trade Minister, MacLehose and his wife went to the Mainland for talks with Mainland high-level officials. After an eleven-day visit, MacLehose returned to Hong Kong.

During this visit, Mailihao even had talks with Mr. Deng, which shows his high level.

As for the content of this meeting, after returning to Hong Kong, MacLehose brought Mr. Deng's words that "investors in Hong Kong can rest assured" to all walks of life in Hong Kong. As for more content of the talks between the two sides, MacLehose did not say much.

Mr. Deng's words, "Investors in Hong Kong can rest assured" were quickly interpreted by the media as meaning, "Everything is easily discussed in the negotiations on the future of Hong Kong between Britain and China."

A few people, including Lin Baicheng, did not believe this interpretation of the media, especially Lin Baicheng, who knew very well the mainland's firm determination to take back Hong Kong. However, discerning people like them will not refute or explain the media's interpretation and let the media report it.

Therefore, under the interpretation of the media, the vast majority of people in Xiangjiang believe that negotiations on Xiangjiang's future are not a problem, so they are naturally more optimistic about Xiangjiang's economic development.

The stock market was the first place to react. With everyone optimistic about Hong Kong's economy, the Hang Seng Index naturally experienced a sharp rise, and it rose sharply for several consecutive days. This time it can be said that the market is generally rising. Stocks in almost all industries have risen, with only a few stocks not rising.

However, when the Hang Seng Index rose sharply, the offshore company reported to Lin Baicheng that the stock price of Hutchison Whampoa fell below HK$60. The offshore company still held some shares and asked him if he was Should I hold it as originally planned or continue to sell it.

The stock market is doing well, but his own stocks are falling. Of course, Lin Baicheng has to ask why.

The reason was quickly found out. The drop in Hutchison Whampoa's stock price was not due to short selling, but was related to the multiple reductions in holdings by offshore companies.

Since the beginning of this year, Hutchison Whampoa has seen positive news many times, but each time it has been unable to break through the previous high of HK$70. Naturally, investors can see that there is a lot of pressure on it, so the stock price has actually been slowly oscillating after the good news. It's going down. If this good news didn't suddenly appear, the stock price would soon fall below HK$60 during the downward trend.

However, the media's misinterpretation of the words MacLehose brought back caused the entire Hang Seng Index to rise sharply, which was good for all companies. Therefore, Hutchison Whampoa's stock price rose accordingly and charged towards the price of HK$70. Unfortunately, offshore companies continued to rise. The stock was sold mid-price, so the charge failed again.

Moreover, this failure soon ushered in a sharp decline, and there was no funds to take over the order, because almost all stocks were rising. Seeing that Hutchison Whampoa's stock price did not rise but fell, of course, investors chose to buy another stock, so It didn’t take long for Hutchison Whampoa’s share price to fall below the HK$60 level.

Knowing that the stock price fell because he kept selling stocks, Lin Baicheng had nothing to say. He could only ask how many stocks he had sold so far and how much money he had withdrawn.

Lin Baicheng's offshore company originally held 59.1 million shares of Hutchison Whampoa. As of February 9, it sold 15.8 million shares, withdrawing about 990 million Hong Kong dollars in funds, leaving 960 million Hong Kong dollars after tax. However, the money was Used it to acquire TV technology and go long gold futures.

Offshore companies have been selling the remaining 43.3 million shares of Hutchison Whampoa, and because Hutchison Whampoa has many favorable relationships, a total of 32.6 million shares have been sold in the past two months, and now there are 10.7 million shares left. Not sold.

The average selling price of the 32.6 million shares sold was HK$64.31, and a total of HK$2.096 billion was withdrawn. After tax, the remaining stock was HK$2.033 billion, which is equivalent to US$484 million in US dollars.

Because Lin Baicheng took HKD 630 million from the Hutchison Whampoa stock sold last time and used it to acquire Venus TV Company, so there was only HKD 330 million left in the offshore company. Including the funds withdrawn this time, the total funds It is 2.363 billion Hong Kong dollars, which is US$562 million.

However, Lin Baicheng asked Vivien Kelly and others to use US$300 million to finance long gold futures. Vivien Kelly and others had completed the operation a while ago, so the remaining funds were only US$262 million.

The average buying price of this US$300 million gold futures operation using ten times leverage is US$244.5 per ounce. This is mainly because the international gold price has been in a narrow range in the past month, with neither a sharp rise nor a sharp fall.

In addition to the US$300 million principal gold futures, Lin Baicheng's US$100 million principal gold futures with Mitsubishi Bank had their financing expired as early as February. At that time, Lin Baicheng had people settle and hand over the funds. To operate offshore companies, use ten times leverage.

For Mitsubishi Bank's US$100 million principal, Lin Baicheng only used five times leverage. The buying cost price was US$211.3 per ounce and the average selling price was US$247.8 per ounce. He made a profit of more than US$86 million. After deducting US$15 million in financing interest and deducting taxes, US$57 million is left.

Lin Baicheng deducted the US$7 million in tax deductions through consumption, and used all of it to buy villas and high-end apartments, which was regarded as a disguised investment.

Lin Baicheng did not return the US$157 million to Mitsubishi Bank. Instead, he handed US$150 million of it to an offshore company and used ten times leverage to buy gold futures at an average price of US$243.95 per ounce.

Not only was he originally long gold futures at Bank of Mitsubishi, but when Lin Baicheng's leverage financing from Goldman Sachs expires in a few days, he will also settle the principal from Goldman Sachs and hand it over to offshore companies for operations, mainly In order to hide it, he tried not to let more people know that he had made a lot of money by doing long gold futures.

The funds currently being withdrawn from the sale of stocks by offshore companies, after deducting the US$300 million used to go long gold futures, are left with US$262 million, plus the US$100 million principal that Lin Baicheng originally gave to the management team, plus The management team made a profit of about US$10 million, and now Vivien Kelly and the others manage about US$372 million.

Because the management of the offshore company manages US$372 million, which is already a large amount of funds, Lin Baicheng decided not to sell the remaining 10.7 million shares of Hutchison Whampoa shares and let the offshore company continue to hold them after consideration. With.

Vivien Kelly and the other management were a little disappointed with Lin Baicheng's decision. Of course, they hope to manage as much money as possible, so that their commissions after making profits will be larger. But while they are disappointed, they are also a little lucky. They are lucky that a few people can manage more than 300 million US dollars, which is no longer a small amount.

Lin Baicheng didn't care what Vivien Kelly and the others thought. The reason why he made such a decision was because he knew very well that Hutchison Whampoa's stock price would rise sharply this year and next year, because Hutchison Whampoa used US$200 million in capital to The financial institution invested US$2 billion in long gold futures. When the price of gold rose to a high point, the profit would be at least US$3 to 4 billion, which would be tens of billions of Hong Kong dollars if converted into Hong Kong dollars.

Even based on the current stock price of about HK$60 per share, Hutchison Whampoa's market value is nearly HK$24 billion. If the outside world learns that Hutchison Whampoa has made tens of billions of Hong Kong dollars in profits, Hutchison Whampoa's stock price will not rise significantly at that time. Ghost.

Therefore, if you hold Hutchison Whampoa's stocks and don't sell them or use them for other investments, you won't lose money. The profits here are very stable.

Because he knew that it was his fault that caused Hutchison Whampoa's stock price to fall instead of rising even when the market was good, and it was not because someone was shorting the company's stock, Lin Baicheng allowed Hutchison Whampoa's stock price to fall and ignored it at all.

In Lin Baicheng's view, if Hutchison Whampoa's stock price fell temporarily, as long as he didn't sell it, then the fall would mean it had not fallen. It would rise sooner or later, and it would rise even more crazily, so there was no need to pay attention to it.

Ignoring the changes in Hutchison Whampoa's stock price, Lin Baicheng was either at Galaxy Games or Ocean Trading Company these days, and he was needed at both ends.

Especially for Galaxy Games. Although Goldman Sachs has sent a team to Xiangjiang to conduct due diligence on Galaxy Games and assist Lin Baicheng in splitting the console business, it is related to the time when the console will go on sale, so he wants to complete the split as soon as possible.

The split of the host business will not only require splitting off most of the hardware R\u0026D department, but also nearly half of the software R\u0026D department, as well as some factories and employees.

After the split is completed, Lin Baicheng will also consolidate the split parts into one company. Fortunately, the controller of both companies is Lin Baicheng, so the factory only needs to be divided into ownership rights, and there is no need to relocate.

Xingyue Electronic Game Company, this is the name Lin Baicheng gave to the split console company, and the company has even completed registration.

On the afternoon of the 7th, Lin Baicheng at Galaxy Games was surprised to learn from Qin Lan that Wade Thomas from Goldman Sachs had arrived in Xiangjiang and wanted to meet Lin Baicheng.

Lin Baicheng was surprised that Wade Thomas suddenly came to Xiangjiang. Of course, he would not refuse to meet Wade Thomas and directly said that he would wait for Wade Thomas here at Galaxy Games Company.

In less than half an hour, Qin Lan led Wade Thomas into Lin Baicheng's office.

"Thomas, why are you here in Xiangjiang? And there is no news at all."

Lin Baicheng went over and shook hands with Wade Thomas.

"I decided to come here on the spur of the moment."

The two shook hands and sat down on the sofa.

Wade Thomas said: "This sudden visit to Xiangjiang is mainly related to Galaxy Games Company."

"Any questions?"

Lin Baicheng looked questioning.

"The due diligence team sent by Goldman Sachs conducted a preliminary investigation on Galaxy Game Company. Galaxy Game Company's revenue and profits were unexpectedly high, especially the profits. The high levels were a bit outrageous. Some people at the headquarters did not believe it, so they sent I’ll come over and take a look.”

Wade Thomas felt quite uneasy. According to a survey by Goldman Sachs, the profits of arcade game companies are about 20%-30% of revenue. However, Galaxy Games Company is doing better, with profits exceeding half of revenue, reaching 60%. %, which is two to three times that of other companies in the same industry.

According to Goldman Sachs's original assessment, Galaxy Games' profits last year should have been around US$100 million. This is why Goldman Sachs can't wait to push Galaxy Games to go public. It's really because this company makes too much money. A delicious piece of fatty meat.

But the truth of the matter is that, excluding Galaxy Games’ investment in consoles, Galaxy Games’ profits last year reached US$300 million, three times what Goldman Sachs estimated. An unimaginable figure that made Goldman Sachs simply not I dare to believe that Lin Baicheng was once suspected of falsifying his data.

After hearing this, Lin Baicheng said: "If you don't believe it, you can check it out and it's fine. The facts are there anyway, and I'm not afraid of you checking it out."

"Alan, it's not that we don't believe you, it's just that those data are so amazing."

Wade Thomas quickly explained, and then changed the subject: "Alan, this is a good thing. Galaxy Games' revenue and profits last year were so high. I thought that it would definitely be pursued by a lot of capital, and it would also be able to sell at a higher level." listed at a price-to-earnings ratio.”

"That's best."

Lin Baicheng smiled. Of course he hoped to list the company at a higher price-to-earnings ratio and at the same time raise more funds for the company's development.

Wade Thomas said: "Alan, I have read the basic situation of Galaxy Games Company. I found that your company is only planning to develop two arcade games this year. Is this number too small? No, I don't believe you. The strength of the company is that your company is now in the sprint stage of listing. Once the game developed is not welcomed by the market, it will inevitably affect the company's listing, or at least its valuation."

"Thomas, my original plan was to focus more on the console game business this year. Now that this business has been split, I will ask the company to recruit more game developers and develop a few more games."

Having said that, no matter how many arcade games the company develops this year, Lin Baicheng will only give out the settings and gameplay of two games. He will pay attention to the development of the games from time to time, and will not let the game development deviate from the direction of the original version, and try to ensure the originality of the game. Original juice. As for the few more games developed, they should be considered as training for the people below. It is best to make money. If you don't make money, you won't lose too much.

Wade Thomas reminded: "Alan, before Galaxy Games goes public, you'd better pay more attention to the games developed by the company and develop classic games like the first four, so that the capital market will have more confidence that the company will not It’s just a flash in the pan, but it’s on the road to stable and rapid development.”

"Don't worry, Thomas, I know it well. After all, the company's profit is related to my pocketbook."

Lin Baicheng nodded to express his understanding. For him now, games are the fastest way to make money. At the same time, he has many classic games in his mind and is very capable in this area. Of course, he cannot give up the road of making big money through games.

"As long as you have an idea."

Wade Thomas nodded and said nothing more, but smiled and said: "Alan, after the business is done, let's talk about personal topics, about Zhonghe Game Company."

Zhonghe Gaming Company is a company established by Lin Baicheng, Phil Smith, Goldman Sachs, and Wade Thomas himself, who is a small shareholder of the company. Now the arcade game "Western Cowboy" developed by the company has been sold in the United States, and the response has been very good.