The birth of the Hong Kong Island family

Tin Shui Wai.

Lin Zhichao accompanied Wang Zhongyi, the head of Huarun Company, to come here for inspection. This was his first cooperation with a Chinese company, so he took it seriously.

After all, the next thirty years will be a period of explosive growth for China's economy. If Lin Zhichao only relies on Hong Kong's status and does not actively "get closer", then his investment in the mainland may also be affected to a certain extent.

Of course, it's not a 'getting closer', but a kind of mutual cooperation and utilization. He helps Chinese companies gain a foothold in Hong Kong, while his company is taken care of in the mainland.

"Mr. Lin, the Hong Kong government really intends to develop Tin Shui Wai into a new town and leave it to enterprises to develop on their own?" Wang Zhongyi said excitedly.

If Huarun Company wins this project, it will show its prestige in Hong Kong's business community and make a lot of money. You know, the most profitable companies in Hong Kong now are real estate companies.

Lin Zhichao smiled and said: "There is no doubt about this, Manager Wang. If the Hong Kong government had not had the idea of ​​developing Tian Shui Wai into a new town, we would not have acquired the Tin Shui Wai enterprise last year. Now they are just two other enterprises, with no influence on the mainland and Hong Kong." We have enough confidence that we plan to take action; and our Cheung Kong Group and the Hong Kong government have actually communicated and believe that inviting Chinese-funded enterprise Hua Yun to join is the most reasonable and suitable."

When developing Tin Shui Wai, Cheung Kong Group will naturally communicate with the Hong Kong government. Even if it changes shareholders, it requires the approval of the Hong Kong government. The reason couldn't be simpler. Without the approval of the Hong Kong government, Tin Shui Wai would be nothing but farmland, ponds, and dilapidated houses.

Wang Zhongyi said happily: "The higher authorities have sent a signal that the interests of Hong Kong businessmen and the prosperity of Hong Kong will be guaranteed. Please rest assured."

Lin Zhichao said: "There are always people who are not brave enough! If Hua Run is interested in this project, I can communicate and let Hua Run buy 51% of the shares, and the rest will be held by Changshi Group. This project will be owned by Hua Run Company To take the lead, we, Cheung Kong Group, can act as shareholders.”

Wang Zhongyi was so excited by Lin Zhichao's few words that he was 'fooled'. In his opinion, this was a big project that Huarun Enterprise had never had before. If a new town is developed in this area, it can accommodate 500,000 people, equivalent to 10% of Hong Kong's population. How much real estate profit will this bring?

"Thank you Mr. Lin for your help. We at Hua Run will keep it in our hearts!"

"Haha, Manager Wang is serious. Without Hua Yun's background, no real estate developer in Hong Kong would dare to develop this project, so it is inevitable that you will lead this project."

Despite this, several managers at Hua Run expressed their gratitude to Lin Zhichao.

Everyone is undoubtedly very excited. Huarun has been developing in Hong Kong for many years, but compared with local companies, it is nothing at all. But if this project is completed, there will be no problem in being promoted to the top ten companies in Hong Kong.

After the inspection, the senior executives of the two companies had a meal together, and the relationship was very friendly.

After the banquet was over, everyone left in a drunken state.

"Father, this project is very difficult. How can Hua Run have the experience to do it? They have no experience in real estate development, and they don't know how to cater to the Hong Kong government's ideas. I'm afraid." In the car, Lin Ruihuan expressed his doubts.

He knew some of his father's ideas - to make good friends with the mainland officials, but this project was something Hua Run could not complete.

Lin Zhichao looked at his son. This boy was quite smart and knew that Hua Run would not be able to complete this project. But compared to planning, he is certainly not as good as Lin Zhichao. In addition to Lin Zhichao being more scheming, Lin Zhichao also knows the future.

"What is the problem now? The Hong Kong government also hopes that Hua Yun will join this project, so that it can test the attitude of the mainland. No matter how to develop the New Territories, the Hong Kong government is hesitant, and businessmen are also hesitant. Businessmen are not only hesitant, but also worried. After eighteen years, the investment in the New Territories has evaporated, which is why Wheelock and Hopewell Properties are exiting.”

Lin Ruihuan suddenly understood and said: "Although the top leaders of the capital have promised to protect businessmen's property from loss after returning this year, the unknown situation still makes everyone doubtful, so everyone hopes for Hua Run's participation and support."

Lin Zhichao nodded and said: "That's why the Hong Kong government readily agreed to Chinese investment in this project this time. As long as Hua Yun comes to take charge of Tin Shui Wai, it means that the entire New Territories can invest with confidence. The development of the New Territories is an urgent matter. Hong Kong's population So much land but so small.”

Lin Ruihuan suddenly thought about it. His father did not deny his statement - Hua Run could not handle this big project, not to mention Hua Run could not handle a new town with a population of 500,000. Even the Changshi Group was currently in very difficult situations.

In this case, this project will be delayed for many years, and during this period, Cheung Kong Group will always be the most beneficial.

Seeing that his son had almost understood it, Lin Zhichao patted him on the shoulder and said: "Don't rush with some things. Who will be the biggest beneficiary in the future, who will laugh last, must be the one who waits patiently and accumulates strength. So this Just pretend the project doesn’t exist, and when it’s time for us to take over, it will come naturally.”

Lin Ruihuan nodded and said, "Well, I understand!"

The Tin Shui Wai project, even if Lin Zhichao is now leading the development, will not be successful. This is 52 million square feet of land. Not surprisingly, the Hong Kong government will take back part of the land in the future for the development of public housing estates, infrastructure, etc., but at the same time, it will also allocate part of the land to companies for real estate development.

To put it bluntly, the government and enterprises must jointly lead the development of Tin Shui Wai, so that the development can be truly successful.

Of course, Lin Zhichao is not waiting for 49% of the profits, but higher profits. As long as Hua Run has no confidence, it will be dominated by the Changshi Group. However, Huarun is afraid of losses and will definitely hope that the Changshi Group will provide guarantees. Then Huarun will naturally take advantage of the opportunity to strip away a lot of interests, because this is a gambling agreement.

The next day.

Xiao Maden, the head of Wheelock Group, came to visit Lin Zhichao again, and the two talked in the office of Cheung Kong Group.

"Sir Sir Lin, Wheelock Building and Madden Building are about to be rebuilt. I would like to invite Cheung Kong Group to cooperate. I believe you will be interested!" said Madden.

Wheelock Building, formerly known as Jardine House, was exchanged in the early 1970s; Land needed Wheelock Building to undergo a 'plot ratio transfer', combining 'Wheelock Building + Gloucester Building + Royal Palace Row' of land was merged into 'The Landmark' and 'Gloucester Building'.

The original Jardine House across Pedder Street naturally became the current Wheelock Building.

Lin Zhichao said: "What kind of cooperation method?"

He knew that Xiao Maden was very conservative in his style, but he was also radical about shipping. This was because he was worried about the future of Hong Kong. Rebuilding the building will require hundreds of millions of Hong Kong dollars in construction costs, so where is he willing to invest?

"The Cheung Kong Group will pay for the reconstruction and share 50% of the equity. The top two floors of the later building will be used as the Wheelock Group headquarters, and the rest will be used for rent collection."

In Xiao Maden's view, the Chinese Bank Building, a joint venture between Cheung Kong Group and HSBC Group, was very successful, so there was nothing wrong with looking for cooperation with Cheung Kong Group, as all aspects were guaranteed.

Lin Zhichao said cheerfully again: "No problem, this cooperation plan is very fair!"

As long as it is a request made by a cooperative enterprise, Lin Zhichao almost agrees to it. The reason couldn't be simpler. The land is theirs, and Cheung Kong Group always gets a "cheap".

For example, to rebuild Wheelock Building and Madden Building, although Cheung Kong Group has to invest more than 300 million Hong Kong dollars in construction costs, this amount of money is very cost-effective whether it is borrowed from a bank or uses its own funds.

After the two discussed it, Xiao Madden left.

In his opinion, it is good to cooperate with Cheung Kong Group. The reconstruction of the first nine properties has been started and sales will begin next year. The efficiency is very high and the management quality is very good. It is not comparable to small and medium-sized real estate developers.

After Xiao Maden left, Lin Zhichao also fell into thinking.

He is estimating how much money Cheung Kong Group can make in the next few years.

Assume that the cash flow plus financial investment at the end of 1979 was HK$1.3-1.5 billion, at the end of 1980 it was HK$2-2.5 billion, and at the end of 1981 it was HK$3.5-4 billion.

Is this money enough?

Obviously, it is not enough. Although you may earn more, it is still not enough.

There was a "land king" in the 1980s, and the land fee alone might have been more than 5 billion; not to mention the construction fee, investment in the Yangtze River Plaza (Admiralty), etc., and overseas development.

After a while, Lin Zhichao called several senior executives to the office.

"I want to invest 200 million Hong Kong dollars in spot gold in the Hong Kong market as quickly as possible. Please arrange it!"

Everyone was surprised!

Zhou Fuzhao was the first to say: "Boss, the international price of gold is 305 US dollars per ounce, and it has increased by 30% this year."

Lin Zhichao said: "I know, I am optimistic about the market outlook. Gold is still very cheap at more than 300 US dollars per ounce. If oil rises high, gold must rise high. This will be the norm from now on."

His idea is that if he invests 200 million Hong Kong dollars in spot gold now, he will get at least 70% of the profit, and at the end of the year there will be an additional non-recurring profit of 140 million Hong Kong dollars; plus the 100 million Hong Kong dollars invested in gold, he can also gain 1.5 billion Hong Kong dollars in non-recurring profits.

As a result, this year's non-recurring profits will reach nearly HK$300 million. Coupled with the real estate boom, Cheung Kong Group can exceed HK$600 million in the real estate field.

A company with an annual revenue of more than 900 million is powerful enough.

The matter was finalized quickly. In this regard, everyone still believes in Lin Zhichao. Including Merliss, no objection was raised during the entire process, because in some aspects, the boss's personal power is also very important.

The debt of Cheung Kong Group is part of the very low debt of Hong Kong listed companies. The market value is nearly 10 billion, and the debt is around 7.8 billion. Even in terms of assets, the debt ratio is only about 10%, which is really not a good situation.

Time flies and it’s late October.

Lin Zhichao was invited by the British government and royal family to go to London to accompany Huaying senior officials as a 'middleman'. Lin Zhichao, the middleman, has a very good relationship with both parties. Sometimes he can pass on some information to make communication between the two parties more convenient.

During this period, Lin Zhichao also had private exchanges with Chinese representatives. The conversation was of course not about state affairs, but about patriotism.

"I heard that China is interested in developing the shipping industry, and I am willing to contribute some modest efforts in this regard. In the past thirty years of being engaged in shipping, I have often visited shipyards in Europe, the United States, and Japan, and recorded some relatively professional technologies, standards, and other information. These notes are placed in my study, and now I hope they will contribute to the country's shipbuilding industry. In addition, Universal Group can also consider supporting the country's shipbuilding industry and provide orders." Lin Zhichao said seriously.

Today, the Global Group only has 9 million tons of ships left, but there is no problem in ordering some bulk carriers, because it can also do business in the mainland.

Upon hearing this, the Chinese representative immediately said happily: "I deeply welcome and welcome Mr. Lin's patriotism. For such important information, after I return to China, I will definitely ask the Sixth Machinery Department to formally invite you."

Lin Zhichao nodded and said, "I will definitely be there!"

His information can be said to be the development history of Japan's shipbuilding industry, and many technologies can only be accessed by Lin Zhichao. Because Lin Zhichao was the most important customer of the Japanese shipbuilding industry at that time, and the Japanese shipbuilding industry did not think that Lin Zhichao was stealing technology and could not learn advanced technology, so there was no defense at all.

To put it bluntly, if the Chinese side obtains this information, it will save several years of research and effort, and soon allow China's shipbuilding industry to achieve certain results.

Of course, China's current shipbuilding industry is based on Soviet standards and is incompatible with international standards. So, standards have to be re-written and the whole system needs to change.

After talking with the Chinese representatives for two hours, Lin Zhichao left.

At this time, Lin Zhichao was not thinking about currying favor with any government, but making his own contribution to the country as a Chinese. Take the precious shipbuilding information in his hands as an example. He didn't need to study and summarize it in such detail back then, because he had already thought of today.

To be honest, spending so much energy is worth billions to Lin Zhichao; of course, for Lin Zhichao's feelings about his family and country, this information is worth the effort and money.

Being poor cares themselves, being wealthy cares the world!

After the accompanying status ended, Lin Zhichao did not leave London, but took his son Lin Ruikai to the headquarters of British Li's Voice.

"Sir Lin, welcome to Li's Voice Headquarters!" President Guy warmly welcomed him.

"Hello, President Guy!" Lin Zhichao held Guy's hand.

Then both parties came to the conference room.

Prior to this, the media group had contacted Lai's Voice and expressed its willingness to take over the operation of Hong Kong Lai's TV station.

Therefore, this time, the leaders of both parties discussed the terms of the transaction.

Guy shrewdly took the lead and said: "Mr. Lin's media group has achieved first place in Hong Kong's publishing, newspaper, and film industries. Now it wants to enter the television industry. It seems very confident!"

Lin Zhichao knew that Guy wanted to negotiate. He smiled and said: "Rather than saying that we hope to enter the TV industry, it is better to say that the media group hopes to dominate Li's TV station so that Hong Kong's TV industry will not be monopolized by TVB. Competitiveness, forming healthy competition. In fact, I am actually a major shareholder of TVB. If I really just want to enter the TV industry, then I think TVB is my best choice. But I have always liked challenges, so I hope Bring hope to Li’s.”

Guy was stunned and asked curiously: "Mr. Lin is the major shareholder of TVB?"

This has not been investigated clearly. It is simply due to unfamiliarity with the business. After all, the two parties have already started negotiating for two or three months.

Lin Zhichao said: "Hutchison Whampoa is one of the major shareholders of TVB, and is tied with HSBC as the largest shareholder."

Guy suddenly said: "I know, Mr. Lin and the chairman of the board of directors of Hutchison Whampoa."

Immediately after Li's call, the senior executives suddenly realized.

As a result, Li's idea of ​​​​wanting to make a profit suddenly became a little difficult. After all, Lin Zhichao now has two choices.

However, after thinking about it, Guy said: "Hong Kong Li's TV Station is undergoing good development after absorbing the resources of Hong Kong Jiayi TV Station last year."

Lin Zhichao said: "Of course! I saw it!"

Guy suddenly choked, and the other person admitted it directly and generously, letting him punch the air.

"What price does Sir Lin intend to offer?"

"What price do you want?"

"In fact, we have no idea of ​​selling Lai TV, just like we in the UK have no intention of withdrawing from Hong Kong."

"This has nothing to do with politics! Lai's TV station is at a disadvantage in Hong Kong, and it lost tens of millions of Hong Kong dollars last year alone. There is no need for Lai's Voice to persist. We are willing to pay a reasonable price to allow Lai's Voice to exit safely."

Guy made eye contact with the senior executives, and he finally said: "Okay, for HK$120 million, we will sell 60% of the equity and hand over the management rights to the media group."

Lin Zhichao immediately calculated that the price was definitely not worth it at this time, but Li's TV station was gaining momentum and would be worth the price in more than a year.

TVB's market value is five times that of Li's. Now Li's TV station is valued at 200 million, so TVB's valuation is 1 billion. However, the difference is far behind in terms of making money. TVB's annual profit has exceeded 80 million Hong Kong dollars, and it was safe to exceed hundreds of millions of Hong Kong dollars in the early 1980s; while Li's TV station also lost tens of millions of Hong Kong dollars last year.

In the end, Lin Zhichao decided to win the deal.

He has taken 60% of the shares, but there is still 40% that he has not taken, so Lin Zhichao will definitely not end it personally in the next two or three years. He must first buy out the shares of other shareholders.