Reborn as a tycoon in Hong Kong
Chapter 830 1980 Annual Report (4)
Changsheng Pharmaceutical Biotechnology Company.
The company invested US$500 million, and Lin Baicheng personally invested US$490 million.
However, this company with huge investment only had expenses but no revenue in 1980.
Everyone in the company is currently carrying out project research and development, but no results have been produced yet. Naturally, there will be no product sales, and there will be no profit without revenue.
There was no revenue, but the company's expenses in 1980 were huge.
As the laboratory was built, the talents recruited began to conduct research and development, and the project was established, funds continued to flow out.
Lin Baicheng even set up a project for research and development himself. However, although he became a genius after his rebirth, he is still a human being, not a god, so the research and development projects he led have not yet produced results.
Of course, the research and development projects established by Lin Baicheng and others were not without any results. There was still some progress, but those were only partial progress of the project and could not be commercialized or generate income for the company.
Lin Baicheng is very clear about the situation of Changsheng Pharmaceutical and Biotech, and he is even mentally prepared to lose all US$500 million within a few years.
This company is Lin Baicheng's hope, a hope to develop treatments for most serious diseases and extend human lifespan. After making so much money, of course he hopes to live healthy and longer, so he invests huge amounts of money just for this hope.
Moreover, because of Lin Baicheng's own investment, he felt that this hope was visible, rather than a gamble that could not see the future.
Jupiter Toy Company.
In 1979, the toy company's top products were Rubik's Cube, claw machine and yo-yo. In 1980, the toy company's best-selling top products were still these three.
With the expansion of channels and promotion, in 1980, these three flagship products brought greater profits to Jupiter Toys than in 1979.
However, Jupiter Toy Company did not do nothing in the 1980s.
In addition to the research and development of mini four-wheel drive toys requested by Lin Baicheng, the company's R\u0026D department has also developed several products. However, these products are not as popular as the flagship products and the audience is not that large, but they have also made some money for the company. At least R\u0026D and other costs can definitely be recovered.
In 1979, Jupiter Toy Company's revenue exceeded HK$400 million and net profit was HK$160 million, which can be said to be very profitable.
Last year in 1980, Jupiter Toy Company had revenue of HK$575 million and net profit of HK$227 million, a month-on-month increase of nearly 50%.
The reason why the revenue and profit of Jupiter Toy Company has not increased significantly is because the technical content of the company's three flagship products, Rubik's Cube, Claw Machine, and Yo-Yo, is too low and can easily be copied. In order to avoid copycat products, Occupying too many markets, toy companies have no choice but to lower product prices. Therefore, despite the fact that more products are sold as channels expand, they are actually not as profitable as before.
But this is inevitable. Patented technology is useful, but as long as the benefits are large enough, there is no way to prevent others from copying and making money.
The mini four-wheel drive racing toy currently being developed by Jupiter Toys Company was developed by Lin Baicheng under the direction of the toy company. The reason for developing this was not only because Lin Baicheng knew it could be popular, but also because its technical content was not low.
Even though it is just a mini four-wheel drive racing car, from the overall design of the racing car to the production of spare parts, there is a certain degree of technical content. Not everyone can copy it. This way, there is a certain threshold to ensure that after the toy is developed, the company Can have greater profits.
It is a pity that the toy company has not completed the research and development in the whole year of 1980. Fortunately, the research and development has come to an end. If nothing unexpected happens, the research and development will be completed in the first half of 1981.
Lin Baicheng continued to read the annual report. The next company was Xiangjiang Telephone Company.
Hong Kong Telephone Company was acquired by Lin Baicheng in March 1980. The company's total share capital was 150 million shares. Lin Baicheng spent 496.4 million Hong Kong dollars to acquire 66 million shares, accounting for 44% of the total share capital. As of the time of the annual report statistics, the company's stock price exceeded At a price of HK$9, if only the book market value of the shares is calculated, Lin Baicheng has made HK$100 million by acquiring this company.
After acquiring Xiangjiang Telephone Company, in addition to changing part of the management, Lin Baicheng's biggest change to the company was to enter the communications equipment market. When Sun Electronics Communications acquired mobile phone technology from Bell Laboratories, United Telegraph Jason Bought communication equipment technology, digested the purchased communication equipment technology, and conducted self-research.
The business operations of Heung Kong Telephone Company have basically not changed much. It remains the same as before.
The current annual revenue of Hong Kong Telephone Company is less than 200 million Hong Kong dollars, and the net profit is only 70 million Hong Kong dollars, which is a price-earnings ratio of almost 20 times. Considering the monopoly market of Hong Kong Telephone Company in Hong Kong, this price-earnings ratio is not high.
However, Heung Kong Telephone Company's business model has been basically fixed. Only with economic development and more and more people able to afford fixed calls can the company's revenue and profits grow. This is also the main reason why although Heung Kong Telephone Company monopolizes the market, its price-to-earnings ratio is not too high.
But this is now. When mobile phones, that is, mobile phones, are developed, with the commercial promotion, revenue from phone fees and future broadband fees will definitely allow Xiangjiang Telephone Company to take off.
If we use a reference for comparison, it is China Mobile a few decades later. This mobile company will have a market value of up to 2 trillion in a few decades.
Even if Heung Kong Telephone Company is just China Mobile in Heung Kong, it is unthinkable to have a market value of one trillion, but it is conceivable to have a market value of hundreds of billions.
Before mobile phones were developed and commercialized, Lin Baicheng's biggest expectation for Xiangjiang Telephone Company was the progress in the research and development of communication equipment technology. In terms of performance, he actually did not have much requirements. He could accept it even if the company did not make money every year.
With Lin Baicheng taking over the Xiangjiang Telephone Company, all profits from this company will be invested in research and development in the future.
Then came Thor Security Company.
This company has nothing to say. It is all investment without any revenue. Moreover, with the recruitment of personnel, training, weapons and equipment purchases, the investment in 1980 was more than that in 1979. Lin Baicheng invested a total of 100 million for this company. US dollars, but not all of the US$100 million has been spent.
The personnel currently being trained by Thor Security Company are divided into two types, one is mercenaries and the other is bodyguards.
Mercenaries and bodyguards are different. Mercenaries perform a variety of tasks and face more dangerous battles. As for bodyguards, their main task is to protect the safety of their employer, and they will only do so when the employer is in danger. There is fighting, and even if there is fighting, the safety of the employer is the top priority.
Whether it can protect the safety of the employer is the most critical thing for bodyguards.
The bodyguards trained by Lei Shen Security are either used to protect Lin Baicheng, or they are used to protect his family and the people he cares about. In any case, they serve him and the entire Lin family.
As for mercenaries, it is because there are too many people to train and it is impossible to keep the remaining people in vain, and if it is inconvenient for Lin Baicheng or the company under his name to come forward, then mercenaries can come into play. .
Therefore, Lin Baicheng was very happy to invest in the protection of Thunder God. Moreover, when the mercenary training takes shape, Lin Baicheng will increase investment and purchase some advanced armed equipment to make the trained mercenary team worthy of the name.
In today's era, weapons are very important to the army or mercenaries. If the weapons and equipment are too poor, even an iron-blooded army with a strong will cannot resist an army with advanced weapons.
In modern warfare, if a shell is dropped, a lot of people may die.
"That's it for today. It's time to get off work."
Putting down the annual report, Lin Baicheng looked at his watch and decided to stop here today and continue reading the rest of the annual report tomorrow.
Among the remaining corporate annual reports, there are only two joint ventures in Xiangjiang, Ocean Import and Export Trading and Xiangjiang Airlines, as well as Galaxy Games, which is listed in the United States, and there are three charity funds in Xiangjiang.
There isn't much left, and Lin Baicheng predicts that he should be able to finish it by tomorrow morning.
After returning home from get off work, Lin Baicheng had dinner with his parents.
Years later, Lin Qin flew to Los Angeles to continue his studies, and his two cousins had not yet returned from the mainland, so if the Lin family did not include servants, only Lin Baicheng and his parents were present.
The next morning, Lin Baicheng went to the company to read the annual report.
Galaxy Games Company.
In 1979, the company's profits were $430 million and it ended the year with $420 million in capital. At that time, part of the US$420 million in funds on the books had not been recovered, and the US$420 million was only the total book funds.
Last year in 1980, the company's profits continued to grow, and the final net profit reached US$520 million, a growth rate of almost 20%. This growth rate may not seem high, but based on the increase in net profit of US$430 million, last year it earned US$90 million more than the year before. This growth rate is not low.
As of the end of the 1980s, Galaxy Games had revenue of US$230 million and accounts payable of US$70 million, which means that there is still US$160 million that has not been recovered. No way, that's how business is. It doesn't mean that you can receive all the money immediately after selling the goods.
Given the arcade distance of Galaxy Game Company, the peak season around Christmas is very large, and there are a lot of orders. For these orders, Galaxy Game Company can only receive 30% of the advance payment at the beginning. The customer will pay 30% of the payment after receiving the goods. Another 20% payment will be received one month, and the last 20% payment will be 10% every other month.
That is to say, the prepayment for the order is 30% of the total price, another 30% after the goods arrive, and the remaining 40% is paid in three months.
If you want to get more orders, it is inevitable to accept the condition of installment payment from customers. This is just like Galaxy Games purchasing accessories from other companies. For large-volume purchases, other companies also need to accept Galaxy Games' price reduction and installment payment conditions.
Galaxy Game Company has high revenue and profits, and its investment is not small.
The research and development of the games produced by the company requires investment, and the hardware research and development of the console also requires investment. At the same time, the company is also developing racing games, which also requires investment.
Such as the share of senior talents, employees' salaries, factory water and electricity, taxes, product promotion, etc., these have been deducted from the total net profit, and research and development is where the most investment is made.
As of the date of the annual report, Galaxy Games' stock price closed at $36.2. Compared with last year's annual report, the company's stock price has dropped a lot.
Galaxy Game Company encountered no obstacles in the 1980s, and its annual revenue and profit reached a new high. However, the company's stock price fell instead. This was mainly because the institution that had previously purchased shares from Lin Baicheng had raised the company's stock price to 50 during the 1980s. Above the US dollar price, shipments began. After the institutions had almost finished their shipments, the company's stock price naturally fell sharply.
The sharp drop in stock prices is also related to the deliberate suppression by institutions. Institutions that have completed shipments naturally hope that the stock price is as low as possible, so that they can take back the sold stocks at a lower cost.
Lin Baicheng knew all this, but he ignored it. Anyway, Wall Street's harvest of leeks from Americans had nothing to do with him.
Xiangjiang Airlines, this company’s annual report is actually nothing interesting.
The company was established in May 1980. Bao Yugang, Guo Henian, and Hu Yinxiang are all shareholders of the company. The employees currently recruited by the company are still being trained, and the aircraft ordered have not yet been delivered, so the company now only has expenses and no income.
As an airline, as long as the city's economy is good and the flow of people coming and going is large enough, the airline will definitely make money.
Xiangjiang is the mainland's port to the outside world and an international metropolis. Needless to say, its future economic development is inevitable. It is inevitable that airlines will make money in the future.
Ocean Import and Export Trading Company.
This company focuses on import and export trade in Hong Kong, Japan, and the United States. Through the connections of shareholders such as Lin Baicheng, Bao Yugang, Iwasaki Mineryu, Phil Smith, and Logan Rockefeller, the company's import and export The trade is booming, and the revenue and profits are naturally very good.
In 1980, the company's revenue was HK$740 million, net profit was HK$200 million, and the net profit margin was about 27%.
The total investment in ocean import and export trade is HK$1 billion, not counting the company's net assets. It only takes five years for all investments to be recovered.
Such a company can already be said to be very profitable.
The company made money, but shareholders like Lin Baicheng did not divide the profits. Instead, they continued to invest in the company's operations, hoping that the company would develop better and make more money for them.
The last remaining corporate annual reports in Xiangjiang are the Huilan Charity Foundation, the Haishan Education Foundation, and the Lin Charity Foundation.
When Huilan Charity Fund and Haishan Education Fund were first established, Lin Baicheng injected HK$10 million into these two companies. It’s not too much, but it’s not a small amount either. If it’s used for charity, it can actually keep the charity fund running for a long time.
In 1980, Lin Baicheng once again injected HK$10 million into each of the two charity funds, and then he paid little attention to it. However, Lin's father and mother would often ask about it, because they were the owners of the charity funds, and they were required to appear on many charity occasions. , mainly because Lin Baicheng found something to do for the two elders and gave them face.
The Lin Charitable Fund did not inject much money at the beginning after its establishment, but starting from this year, Lin Baicheng will invest 5% of the net profits of the companies under his name last year into the Lin Charitable Fund.
Although it is only 5% of the net profits of the companies under Lin Baicheng's full control, when all the companies are added together, it is not a small amount, and it happens every year.
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