Rebirth: The Era of Hong Kong Tycoon

Chapter 304 [Privatization of Wharf]

In March, Lam Wing Heng officially announced the privatization of Wharf Group, and made a comprehensive acquisition at a price of HK$3 per share (22% premium).

Wharf Group currently has a total share capital of 2 million shares, each priced at HK$16.5 per share, with a total market value of HK$33 billion; Lin Rongheng holds 51% of the shares, and this comprehensive acquisition is expected to cost HK$22 billion.

And the 35% premium price can be said to be an extremely friendly comprehensive acquisition, which made those shareholders who hold Wharf shares all smile. In just half a month, Lin Rongheng's shares have exceeded 90%, and he announced that The acquisition is complete.

Lin Rongheng spent nearly 50 billion Hong Kong dollars for the Wharf Group, but it can be said to be very worthwhile.

九龙仓集团被私有化后，立马宣布启动‘时代广场’计划：在香港电车原总厂地皮，修建一幢46层和一幢38层的高级写字楼西敏寺大厦和蚬壳大厦，以及一座16层高的综合性商场；商场可容纳300间商店、18间食肆、1间大型电影院、700个泊车位、一个面积约3.2万平方尺的庭院式广场。

The entire project is 260 million square feet and is expected to be completed by the end of 1988. The project does not need to pay land premiums to the Hong Kong government, and the entire investment capital is 25 billion Hong Kong dollars.

The citizens of Hong Kong have become numb. During the real estate crash, Evergrande and Wharf have launched four major projects, namely: Exchange Square, Benda Center, Convention and Exhibition Center, and Times Square, involving nearly 160 billion Hong Kong dollars.

Affected by these news, although real estate has not turned prosperous, some people who are eager to sell properties also plan to wait and see.

Of course, this does not affect the overall situation of Hong Kong's real estate, and it may just bottom out and rise a little bit.

As for Evergrande Real Estate and Lin Rongheng's bottom-hunting funds, they have already bought more than half of them, and it doesn't matter if the subsequent funds are raised a little bit. This will indirectly weaken the strength of their competitors, because their bottom-hunting began in 1984. Even after the Sino-British negotiations were over, many real estate developers joined in bargain hunting. At that time, they just raised land and property prices.

The development of Xiaomi Electronics has been very good in recent years. The company’s Walkman, handheld game consoles, game watches, and red and white machines have made a lot of cash, and then the company uses all these funds for memory chips, color TVs, washing machines, refrigerators and other industries. .While none of these products were state-of-the-art, they sold very well.

In the conference room, senior executives of Xiaomi Electronics gathered together, including Chinese, Japanese, Americans, and Europeans. Xiaomi Electronics has become a well-known international electronics company, and the electronic game industry alone can bring Xiaomi 4000 million U.S. dollars every year. of net profit.

Lin Rongheng looked at the group of executives with a good mental outlook. Hong Kong has become an international city, and it is not difficult to attract talents to go there.

"The first issue is that the price of Dram chips has fallen to the cost price, but I decided to let the company do the opposite, and from now on, go against the trend and expand production wildly."

A Japanese executive asked: "If the price cycle of Dram chips is too long, the company will lose hundreds of millions of dollars; and the company also invests a lot in industries such as color TVs, washing machines, and refrigerators. Profits are not enough to support massive investment in so many industries at the same time.”

The annual profit of Xiaomi Electronics is less than 6000 million U.S. dollars. After all, it competes with small profits but quick turnover.

Lin Rongheng said directly: "Don't worry about insufficient funds. We can use loans, stock market to raise funds, and I can even provide free loans. In short, this is a long-term investment. According to my guess, 40 to 50 Dram chips will fall this time. Manufacturers, we can undertake their production lines and technical personnel.”

The factory buildings of Xiaomi Electronics are all owned by Lin Rongheng himself, and the rent is very favorable. Although there are not many talents in this field in Hong Kong, Xiaomi Electronics has recruited many talents from Japan, South Korea, Singapore, and even the United States and Europe over the years. The company has factories and laboratories overseas.

Xiaomi Electronics has been established for nearly 10 years. Lin Rongheng has invested nearly 3 million Hong Kong dollars successively. In addition, the profits from fans, walkmans, and video games are all spent on expansion. In the era, Xiaomi Electronics also ranks among the second-rate electronic brands.

However, Xiaomi’s color TVs have begun to exert their strength. Because the factory is built in the mainland, the cost has been greatly reduced. Xiaomi’s color TVs are sold overseas at a low price. In addition, the technology of the picture tube is the advanced technology of the original RCA, so the competitiveness is very high.

Moreover, red and white machines are becoming more and more popular in Europe and the United States, and the profit will reach 1 million U.S. dollars every year in the future. These are the advantages of Xiaomi Electronics.

The emergence of Xiaomi Electronics directly disabled Nintendo, and the patent lawsuit alone was enough to make Nintendo slump; moreover, Xiaomi Electronics’ industrial chain supply in Japan was good, because Xiaomi Electronics gave up most of the profits of hardware to Japanese manufacturers, mainly making money. Take profits from software game cards, as well as a small amount of hardware profits and patent fees.

And a large number of classic games are planned by Lin Rongheng, such as "Donkey Kong", "Super Mario", "Tetris", "Baseball", "The Legend of Zelda", etc. Lin Rongheng has played these games, Formulating gameplay, rules, etc., and handing it over to designers is definitely much easier than developing a new game.

Soon the first issue was passed. Although Lin Rongheng basically handed over the management of the company to professional managers, he has always had the power of 'dictatorship' in the general direction of the company; after all, Lin Rongheng not only holds 75% of the shares , and many of the company's products were developed under the planning of Lin Rongheng.

Then, Lin Rongheng decided to let Xiaomi Electronics withdraw from the arcade field, mainly charging arcade game patent fees; Xiangjiang's electronics industry is not weak at all, for example, many arcade machines around the world are produced by Hong Kong manufacturers.

Now Xiaomi Electronics’ electronic game industry is mainly game consoles and handheld game consoles. The profits and sales of arcade machines are too small, so they just gave up.

Lin Rongheng asked Xiaomi Electronics to step up cooperation with the mainland, mainly to produce large electrical appliances such as TVs, refrigerators, and washing machines to reduce costs.

Finally, Lin Rongheng said: "I plan to split Xiaomi Electronics into three companies - Xiaomi Electronics, Xiaomi Electric, and Xiaomi Semiconductor. The parent company of the three companies, Xiaomi Group, will replace Xiaomi Electronics' listing status."

Everyone's eyes are bright, so the sales volume will be higher after the split, which is convenient for accounting.

Especially now that Xiaomi Semiconductor is aggressively entering the field of memory chips, it may take many years to suffer losses; after the spin-off, we can have an intuitive understanding.

The next step was to appoint the person in charge. As a result, the presidents of the three subsidiaries were all foreigners, and Xue Weiyi became the president of the group company, responsible for coordinating the group's affairs.As for Lin Rongheng, he basically made decisions on major issues.

For Xiaomi Group, Lin Rongheng didn't intend to make money at all, and originally planned to play with an annual fee of 10 billion Hong Kong dollars; but he didn't expect that due to the success of the video game field, he would not have to pay for it.

Of course, now that the company is listed, Lin Rongheng plans to use loans, fundraising, etc. to obtain funds to continue investing in the electronics industry.

(End of this chapter)