Reborn as a tycoon in Hong Kong

Lin Baicheng returned to his desk and continued reading the annual report.

Galaxy Financial Group currently has only three companies, namely Galaxy Bank, Yum Securities and Galaxy Insurance.

Among them, Galaxy Insurance was just established in the second half of last year. The company had just launched its insurance business, so it was of course impossible to make much money. Lin Baicheng also looked at the business expansion. From this, we can see how the company's employees are performing.

Judging from the current data, there is nothing that surprises Lin Baicheng, and his evaluation is mediocre.

However, Galaxy Insurance Company is still very important. Lin Baicheng has decided to pay five insurances and one housing fund for the employees of his company in Hong Kong starting from this year in 1980.

In this era, there is no concept of five social insurances and one housing fund, and the Hong Kong government cannot have such good plans for the citizens of Hong Kong. Even British citizens do not have pension security and other benefits, let alone the 'aboriginals' of the colony.

The five insurances and one housing fund that Lin Baicheng wants to obtain are based on domestic policies decades later, but now they are led by Galaxy Insurance Company, and the insurance targets are employees of Lin Baicheng's companies.

It also needs to be paid for 15 years, the employee personally contributes 30%, the employee's company contributes 40% to the employee, and Lin Baicheng's Lin Charity Foundation registered in Xiangjiang also contributes 30%. After employees have paid for 15 years, male employees can receive the corresponding monthly salary after retirement at the age of 55, while female employees can receive it after the age of 50.

After all, it is not 40 or 50 years later. People's living standards are not very good yet, so the average life expectancy is not as high as it will be in a few decades. Therefore, the retirement age cannot wait until after 60 years old.

Also, with the same investment ratio, the higher the level of each of Lin Baicheng's companies, the more money you can pay, and the more monthly salary you can receive after retirement, such as medical care, housing and other security guarantees. better.

Furthermore, although the policy of five insurances and one fund is for the benefit of employees, it is up to the employees to decide whether they want to participate in the five insurances and one fund, so as not to cause employees to doubt whether Lin Baicheng, the big boss, wants to hack their money after doing good things.

Time will tell. Anyway, Lin Baicheng is considering the long term, so there is no need to force all employees to pay five insurances and one housing fund.

For the five insurances and one housing fund, Lin Baicheng’s company needs to provide 40% of the funds, and he personally has to provide 30% of the funds. It seems that the loss is huge, but the problem is that he can take the money paid by the employees. To invest, and the currency is constantly depreciating, so he can't actually lose money.

Of course, this is Lin Baicheng's long-term arrangement for Galaxy Insurance Company. The company itself will also launch life insurance, safety insurance, property insurance and other insurance businesses.

Then came Yum Securities. In 1978, Yum Securities' net profit was nearly HK$200 million. At the beginning of 1979, the company's principal was HK$241 million.

Throughout 1979, Yum Securities' performance reached a new high, with a profit of nearly HK$500 million. After deducting various taxes and employee salary bonuses, there was still a net profit of almost HK$450 million.

The main reason why last year's net profit was so high was that the principal of Yum Securities last year was much higher than the year before. The principal the year before last was only HK$50 million. Then the company profited from the fluctuations in Hutchison Whampoa's stock price several times. The more gold there is, the more profits will naturally come from it.

This is Yum Securities' own profit, and has nothing to do with Lin Baicheng's accounting of Yum Securities' operational profits. What Lin Baicheng accounted for was his own profit, so the company's revenue and profit last year were indeed very good.

Today, Yum Securities has a principal of nearly 700 million Hong Kong dollars. The more principal, the higher the profit. Of course, this is under the premise that the company makes money. If it loses money, the more principal it has, the more it will lose.

Lin Baicheng is not prepared to withdraw part of the nearly 700 million Hong Kong dollars in principal of Yum Securities, and will put all of it in the company as development funds.

Compared with the first half of last year, after Yum Securities merged into Galaxy Financial Group, Yum Securities’ business expanded and began to engage in brokerage business. To put it simply, investors are allowed to open accounts at Yum Securities, and the company conducts margin trading and securities lending business through Galaxy Bank to earn transaction fees and interest from investors.

Because it is less than half a year old, the brokerage business has only begun to develop, and the scale is not large yet.

After reading the annual report of Yum Securities, Lin Baicheng picked up the annual report of Galaxy Bank.

Galaxy Bank was acquired by Lin Baicheng after September 1978. It was formed by integrating three small banks. Therefore, the bank did not have much revenue and profit in 1978. It would not only have to recruit people, but also establish branches and clean up the original bank. There are a lot of things like bad debts in banks and so on.

After entering 1979, the development of Galaxy Bank slowly got on the right track. Especially after Lin Baicheng once again injected HK$1 billion into the bank, the bank's development entered a high-speed channel. With money, you can recruit better talents, and with talents, branch outlets and business expansion can go more smoothly.

More importantly, as the talents of Galaxy Bank formed an excellent team, Lin Baicheng began to transfer the flow of the company under his name to Galaxy Bank.

The company's turnover is not just the company's own revenue and profits that have transactions with the bank. Employees' salaries are paid through Galaxy Bank, so employees must open accounts with Galaxy Bank. In the future, there will definitely be a large number of employees who often use Galaxy Bank's bank cards.

In addition, the company has capital exchanges with other companies. The company under Lin Baicheng's name uses Galaxy Bank. There is another handling fee for inter-bank transfers, so related companies also need to open accounts at Galaxy Bank. These companies are likely to become Galaxy Bank customers.

Furthermore, for the temporarily different funds placed in the account by the enterprise, Galaxy Bank can create profits whether it invests it itself or lends it to other individuals or enterprises.

Therefore, the more companies that put their business in Galaxy Bank and the larger the scale of the company, the more benefits Galaxy Bank will gain.

The enterprises currently under Lin Baicheng's name in Xiangjiang are not only enough to support a bank, but can even develop this bank into a top-ranked bank in Xiangjiang.

Currently, among Lin Baicheng's companies in Hong Kong, only Hutchison Whampoa has a part of its business flow transferred to HSBC. The other companies' flow lines are all placed in Galaxy Bank. Therefore, Galaxy Bank has been developing quite rapidly since the second half of last year.

As of the end of last year, Galaxy Bank's depositors' funds had exceeded 10 billion Hong Kong dollars. These funds mainly consist of three parts, one is the depositors' funds of Xiangjiang citizens, the other is the funds of enterprises under Lin Baicheng's name, and the third is Lin Baicheng's own funds.

With his own bank, of course Lin Baicheng would put his money in his own bank. There is no reason to keep the money in HSBC.

Last year, Galaxy Bank's net profit was HK$180 million, but a considerable part of this net profit of HK$180 million is non-renewable.

The year before last, Galaxy Bank launched a business that recommended depositors to buy gold funds. The bank charged a 1% handling fee and a 20% profit share.

As the price of gold continues to rise, Hutchison Whampoa Investment, led by Lin Baicheng, has made profits many times, and Yum! Fund has made huge profits for its customers. These have attracted the hearts of many Xiangjiang citizens, and then they opened an account at Galaxy Bank to buy gold funds.

Galaxy Bank takes customers' money to do long gold futures without using leverage. Customers can open long gold futures orders as much as they have.

After the gold price exceeded 550 US dollars per ounce a while ago, Galaxy Bank began to contact depositors, saying that Galaxy Bank believed that the current gold price was not low anymore and recommended customers to sell long orders. Of course, the decision lies with the customer. If the customer is unwilling to sell, that is up to the customer.

Most customers are ordinary citizens. There are greedy people, but the number is not large. Therefore, most of them choose to close their long orders. Only a few customers have not yet closed their orders.

This business made Galaxy Bank a huge profit of more than 40 million Hong Kong dollars. In other words, Galaxy Bank has brought profits of more than 200 million Hong Kong dollars to depositors. The depositors who originally chose to buy gold funds had 100 million Hong Kong dollars in funds.

Now, of course, Galaxy Bank has ended its gold fund business. After all, gold prices will continue to fluctuate and decline for a long time.

However, after the gold fund business ended, Galaxy Bank launched the stock fund business to customers. This business allows customers to hand over their money to the bank. The bank charges a 2% management fee and a profit share of 1% to 20%. The higher the bank's share, the higher it will be.

At present, customers have handed over more than 20 million Hong Kong dollars of funds to the bank for management. I believe that as time goes by, the funds will become more and more, and the annual management fees alone can charge a lot.

"When the price of gold drops below US$400 per ounce, we will buy physical gold through the bank as the bank's currency reserve."

After reading the annual report, Lin Baicheng thought to himself. If he remembered correctly, the Hong Kong dollar was officially pegged to the U.S. dollar in 1983, causing the Hong Kong dollar to depreciate. As reform and opening up progressed, the mainland's RMB would also depreciate, so the currency would depreciate, especially when countries experience economic crises.

In the next few decades, Lin Baicheng remembers that it was just before entering the 21st century that the price of gold fell below US$300 per ounce for a period of time. It had been running above US$300 per ounce after this wave of highs. , so you won’t lose money if you start buying physical gold when it’s below $400 per ounce.

Then there is the international versatility of gold. No matter which country you get it from, it can be exchanged for the currency of the country where it is located. If you want to convert it into Hong Kong dollars, you can't directly convert it into Japanese yen now. You have to convert it into US dollars first, and then exchange the US dollars into Japanese yen.

Not to mention the troublesome procedures, you also have to pay a handling fee. Currency exchange is not something you can exchange however you want. There is a handling fee in the process.

As the most important part of Lin Baicheng's business system, Galaxy Financial Group has a lot of benefits for Galaxy Bank, the core of the group, to reserve some physical gold. It can improve the risk resistance of Lin Baicheng's business system, which is very important.

As for the funds to buy physical gold, Lin Baicheng has already thought about it. It is impossible for all the funds he made from long gold futures to be used for investment. These funds can be used to buy gold and store it in Galaxy Bank.

From now on, Lin Baicheng's company can earn him a lot of profits every year, and some of these profits can be used to buy gold, so there is no need to worry about not having the funds to buy gold.

Because of the large number of subsidiaries of Asia Star Media Group, Lin Baicheng read the annual report last. He then read the annual report of Jupiter Toy Company.

In 1978, Jupiter Toys Company mainly produced and sold Rubik's Cubes and claw machines. These two toys brought a lot of profits to the company. The company's net profit in 1978 was HK$28.2 million.

Last year, in 1979, the Rubik's Cube and claw machine were still the flagship products of Jupiter Toy Company, but they added toys like "Yo-Yo", and all three toys were very popular.

A total of 5 million Rubik's Cubes were produced the year before last, but only a little over 1 million were sold. After fermentation and price reduction last year, sales surged, with a total of more than 6 million units sold. For this reason, Jupiter Toy Company produced it again last year 3 million Rubik's Cubes.

A total of more than 5,000 claw machines were sold the year before last, and more than 30,000 were sold last year. This does not include the Jupiter Toys Company's placement in Starlight Toy Stores in the United States, Japanese Zhiyin Comics physical stores, and Xiangjiang Star Cinema. claw machine.

The product ownership of the claw machines placed in these physical stores still belongs to Jupiter Toys Company, but the daily profits are shared between Jupiter Toys Company and the company that provides the venue, with a ratio of half and half. This area was also provided to related companies last year. Made a lot of profits.

Yo-Yo is a new toy launched by Jupiter Toys Company last year. It has been well received since its launch and children like it very much. However, it takes time to promote it, so it only brought a few million Hong Kong dollars to Jupiter Toys Company last year. Just profit.

In addition, Jupiter Toy Company later acquired a factory that made plush toys. Due to the sale of the claw machine, it sold a lot of plush toys, which also provided the company with profits of several million Hong Kong dollars.

All added up, Jupiter Toy Company's revenue exceeded HK$400 million last year, mainly contributed by the two products of Rubik's Cube and Claw Machine. After deducting various expenses, the company's net profit last year was as high as HK$160 million.

However, Jupiter Toys Company increased its investment in the technology research and development department last year. The company invested HK$10 million in special research and development of the mini four-wheel drive toy proposed by Lin Baicheng, and HK$10 million in the research and development of other toys and updated technologies.

Therefore, the net profit left on the account of Jupiter Toys Company in 1979 was HK$140 million.

Lin Baicheng was very satisfied with Jupiter Toy Company's profits in 1979. After all, the company's net profit the year before was only more than 20 million Hong Kong dollars, and this year's net profit has doubled several times.

Furthermore, Lin Baicheng's principal investment in Jupiter Toys Company was only 50 million Hong Kong dollars. Not to mention the current value of the company, the cash in the company's account alone exceeded 150 million Hong Kong dollars, which was already three times the principal investment.

Unlike other companies, Jupiter Toy Company currently does not need much capital to invest in expansion, so Lin Baicheng can withdraw 150 million Hong Kong dollars in cash from Jupiter Toy Company, but he has not done so for the time being. Anyway, the money placed in Jupiter Toy Company's account is also deposited in Galaxy Bank, and it doesn't matter whether it is transferred to his personal account or not.

If Lin Baicheng needs it, he can withdraw cash from Jupiter Toy Company at any time. After all, he is the only boss of the company.