Rebirth: The Era of Hong Kong Tycoon

Chapter 273 [The future of Hutchison Whampoa]

This Spring Festival Lin Rongheng had a very happy life, four wives and seven children gathered together.

After the Spring Festival, the Big Three of Hutchison Whampoa voluntarily offered to resign, with Ma Shimin taking over as the CEO and He Rui as the executive director.

After the new management took office, Lin Rongheng held a high-level meeting of Hutchison Whampoa.

With confidence in his eyes, Lin Rongheng glanced around the senior management, nodded in satisfaction, and said: "The new chapter of Hutchison Whampoa has begun. Today I am here to shout out a slogan--While Hutchison Whampoa is based in Greater China, , will strive to become a worldwide sum group.”

Everyone was surprised. Isn't this the strategy of Jardine Matheson?

Ma Shimin asked: "Is the focus on Xiangjiang, the mainland, or overseas?"

Lin Rongheng said vaguely: "These are not the key points. The point is that where there are opportunities in our business, there will be our investment. The real world-class companies are in contact with the mainland. We can't do the opposite!"

Everyone was noncommittal, after all, foreigners accounted for [-]% of the senior management in the meeting room, and Chinese only accounted for [-]%. However, taking pictures of Lin Rongheng's recent standing, everyone will naturally not try their own power.

Then, Lin Rongheng said: "From now on, the business of Hutchison Whampoa's parent company is real estate, retail, trade, finance, shipyards, pharmaceuticals, etc.; three first-level subsidiaries are separated: Hutchison Portland, Evergrande Infrastructure, and Note the telegram."

In his previous life, Li Ka-shing adopted the Russian nesting doll model to manage Cheung Kong and Hutchison Whampoa. This is definitely worth learning from Lin Rongheng. At the same time, Hutchison Whampoa has different structures in different periods. It will be listed and privatized.

The purpose of listing is to raise funds from shareholders to grow the company. When the stock market is in a downturn, the listed company will be privatized. This is equivalent to using shareholders' money to develop the company, and finally driving the shareholders out of the company.

Of course, this is a normal business activity. When the market is in a downturn, stockholders can't wait for someone to go private. After all, they will buy the stocks in their hands at a premium of more than 20%.

Ma Shimin asked: "Hutchison Telecom is a new company, what is the specific business?"

Lin Rongheng said: "Let's do this! Let me give you a detailed plan and explain the development prospects and business of the three first-tier subsidiaries."

"Hutchison Portland, everyone should understand the specific business, which is ports and services. In the future, we will not only continue to strive for the remaining container terminals in Kwai Chung, but also invest in container terminals and berths around the world."

At present, five container terminals in Kwai Chung have been operated, and Hutchison Whampoa's International Container Terminals has the right to operate container terminals No. [-] and No. [-]. It is one of the two giant container terminals in Hong Kong.

Another container terminal giant is Modern Containers, which operates container terminals No. 30 and No. 30; however, Modern Container Terminals is a joint venture company formed by multiple companies. OOCL (40%) and two European container companies account for Swire, HSBC, Jebsen, Hutchison, and Kadoorie accounted for [-]% of the shares.

Among them, No. 30 Container Wharf Group holds another [-]% of the shares.

This is equivalent to saying that in addition to fully owning two container terminals, Hutchison Whampoa also owns a small amount of shares (8%) in three container terminals; and Lin Rongheng's Wharf Group also accounts for 30% of a container terminal.

Basically, the Lin family occupies half of Kwai Chung, and the four container terminals behind can harvest more than two and a half.

For Lin Rongheng's proposal to vigorously promote the investment in containers, all the senior executives of Hutchison Whampoa expressed their approval. Facts have proved that shipping has entered the era of containers.

Lin Rongheng continued: "In addition to holding shares in Hong Kong Electric, Qingzhou Yingni, and China Gas, Evergrande Infrastructure also uses the dividends of the three companies every year to jointly invest in transportation, power distribution networks, and natural gas distribution with these three companies. Gas, water treatment and other businesses, Xiangjiang, Australia, Canada, the United Kingdom and other regions can all invest.”

"Hutchison Telecom, the initial business is paging and fixed-line. We have acquired paging companies in the market, and the Hong Kong Telephone Company in the United States is developing mobile phones. In the future, Hutchison Telecom will also be a provider of mobile phone networks and equipment in Hong Kong."

Hong Kong currently has two telephone companies, one is the Great Eastern Telegraph and Telegraph Company of the United Kingdom registered in the United Kingdom, the British Great Eastern holds 80% of the shares, and the Hong Kong government holds 20% of the shares; the other is the Hong Kong Electric Lighting Company, which is publicly held. In the previous life, this company was acquired by Jardine Matheson in 1981, but later, Hongkong Land did not manage well and sold the shares to Dadong Telegraph Bureau. In this way, Dadong controlled Hong Kong's telecommunications (fixed telephone network and telecommunications network).

Later, seeing that Hong Kong was going to be taken back, the Great Eastern Telegraph and Telegraph Bureau of the United Kingdom quickly registered its Hong Kong business in a Hong Kong company, and then allotted shares to Chinese-funded companies to obtain continued operations.

Lin Rongheng quickly planned the development of Hutchison Whampoa, and all the senior executives couldn't help admiring Lin Rongheng's generosity. Of course, the specific implementation depends on the senior management.

At the end of February, Evergrande Real Estate completed a real estate transaction and won the Federal Building and International Building at a sky-high price of 2 billion Hong Kong dollars, which shocked Hong Kong and Kowloon for a while.

Some people in the real estate industry analyzed that the market prices of Federal Building and International Building should not exceed 9 million Hong Kong dollars. After all, these two buildings were built in the 60s and are not considered first-class buildings.Evergrande Real Estate bought it at a price 2% higher than the market price, which is really rare.

However, Lin Rongheng did not intend to let Evergrande Real Estate keep these two buildings. He planned to sell the Federal Building and the national plan at the end of the year. If there is no accident, it should be able to sell for 22 billion Hong Kong dollars.

In one year, Evergrande Real Estate can make a profit of 11 billion Hong Kong dollars by speculating on the building. Although it is an exaggeration, such things do happen in this era.

Lin Rongheng personally despised these two buildings, after all, they were both built in the 60s. The location of the Federal Building is good, but the occupied area is too small.

At present, Evergrande Real Estate under the Lin family owns a total of 17 buildings or building complexes, which are:
Huarenhang, a building in the banking district of Central, a complex of lower-level shops and upper-level office buildings, currently worth at least 10 billion Hong Kong dollars;
Locke Building and Elizabeth Building are two buildings built on the site of the former British American Tobacco Company in Wanchai, with a total value of more than 12 billion Hong Kong dollars;
Central, Wanchai, and Causeway Bay each have a new building, each worth HK$4-5 million, with a floor area of ​​just over 30 square feet.

AIA, former Kai Tak Real Estate property, worth about 4 million Hong Kong dollars

There are a total of six coastal building complexes in East Tsim Sha Tsui, two of which have been completed and four are under construction; the six coastal buildings are planned to be three five-star hotels, three complexes of shops and office buildings; six buildings From east to west, the complex is: City Garden Hotel (own brand), InterContinental Hotel (managed by InterContinental Group), Empire Center, Tsim Sha Tsui Center, Westin Hotel (franchised), Yonghui Center.The land and construction cost of the six buildings in East Tsim Sha Tsui is about 20 billion Hong Kong dollars. Most of the construction cost comes from the sale of the land and old buildings in the hands of Lin Rongheng to Evergrande Real Estate in 1978.

Universal Building, the property above the Central MTR Station, has a floor area of ​​about 30 square feet. It was purchased for HK$1978 million in 6 and is now worth more than HK$10 billion;
Admiralty Center, the property above the Admiralty MTR Station, has a floor area of ​​about 45 square feet. It was purchased for HK$1978 billion in 10 and is now worth about HK$16 billion.

The Hilton Hotel in Central and the Hyatt Regency Hotel in Bali, this deal is undoubtedly very cost-effective, and now the Hilton Hotel in Central alone is worth around 5 million Hong Kong dollars.

Evergrande Real Estate is a private real estate company owned by the Lin family. In addition to first-class mansions worth nearly 100 billion Hong Kong dollars, it also owns many high-quality villas and mansions.

Lin Rongheng did not intend to incorporate Evergrande Real Estate into the family office, or it was under Lin Rongheng's hands at the time. Lin Rongheng would set up this company as a continuous management fund in the future, and the beneficiaries would be the children of the An's sisters.

Lin Rongheng's current businesses are roughly divided into: Modern Media Group, Evergrande Holdings Group (including Evergrande Real Estate, Hutchison Whampoa), Xiaomi Technology, and Galaxy Finance.

Undoubtedly, these four groups are also planning to leave it to the children of the An's sisters.

(End of this chapter)