Reborn in Hong Kong as a Tycoon

Chapter 254 18 Billion Profit!
Lin Baicheng, who returned to Xiangjiang at noon, first went home to rest for a while, and then went to Hutchison Whampoa after two o'clock in the afternoon.

Today is Tuesday, but during the daytime on Monday in London, the international gold price rose above 210 US dollars per ounce, and when the gold price reached 213 US dollars per ounce, Yuan Tianfan, who was in charge of trading in London, decided to sell long gold futures. He got in touch with Lin Baicheng in Tokyo.

Lin Baicheng said that as long as the price of gold breaks through 210 US dollars per ounce, it can be sold, so he agreed with Yuan Tianfan to sell.

Hutchison Whampoa’s own operating capital is 15 billion US dollars, plus the profit, a total of nearly 20 billion US dollars in long orders. Although there are many, the trading volume of gold futures is very large, so all the selling orders are slowly completed on the same day. out, delivery liquidation.

After the liquidation settlement was completed, 20% of the investment profits remained in London, and the rest was transferred to the company account of Hutchison Whampoa through HSBC.The remaining 20% ​​is tax, but this 20% is not paid in full, but half is paid, and the other half is tax-avoided through investment.

In fact, if it is replaced by British-owned capital, it can avoid more taxes, but Hutchison Whampoa is an enterprise of Heung Kong after all, and the company's controller is still a Chinese.In terms of corporate finance, if the company earns too much this time, it will definitely attract people's envy. If the tax avoidance exceeds half the dividing line, it will definitely be troubled, and the company will face huge fines at that time.

After Lin Baicheng learned about it, he asked finance to pay tax on 10% of the profits, leaving the rest in the account of the London branch, and waiting for the delisting of Watsons to invest in the construction of large supermarkets in the UK.

After Lin Baicheng came to the company, he called Wei Li, Cheng Yufeng, Xia Boyin, and Wei Peter to the office.

Secretary Chen Huixiang made coffee and tea and went out. There were only five of Lin Baicheng and the others in the office.

Lin Baicheng said: "Wei Li, tell me in detail about the company's investment profit this time."

Wei Li was prepared for this, so he responded: "The company's gold futures investment can be said to be divided into two parts. The profit before this time was 1.25 million U.S. dollars. This time, the cost price of the purchase is 163.6 U.S. dollars per ounce. The average selling price was $214.4 per ounce, with a profit of a little over 31.05%.

"The company used leverage to operate 15 billion US dollars, so after deducting the handling fee, it made a profit of 4.62 million US dollars. The company's first profit was 1.25 million US dollars. If the two add up, the total profit is 5.87 million US dollars. "

“虽然获利了5.87亿美元，但融资杠杆的利息却每月都要支付，如今2月末的7.5亿美元融资利息已经支付了5个月，4月末的7.5亿美元融资利息已经支付了3个月。”

“如此一来，等于要支付8个月的7.5亿美元融资利息, 而融资利息的年利率是9%, 8个月刚好是年利率的四分之三，也就是6.75%的利息，5000万美元多一点。”

"After deducting interest, the company's total investment profit is US$5.37 million. Among them, 20% of the tax cannot be brought back, so the company's profit brought back to Xiangjiang is US$4.296 million, which is 18.04 billion Hong Kong dollars in Hong Kong dollars."

"Although the tax has been deducted a lot, but fortunately, the tax can be reduced through investment, so the tax deducted is only more than 5000 million US dollars, and the remaining 5000 million US dollars will be invested in the UK after Watsons completes the delisting Large supermarkets. Because this fund is related to tax, the investment must be completed within the year to really offset the tax.”

"Very good! A profit of 18 billion Hong Kong dollars, very good!"

Lin Baicheng was very happy after hearing this. Although he already knew that the company's profit this time would be more than 15 billion Hong Kong dollars, he was still very excited at the moment.Previously, the profits were book profits, but now it is different. The 18 billion Hong Kong dollars in profits have already entered the company's account.

"Mr. Lin, thanks to your sharp eyesight, the company can achieve such a high investment profit."

Cheng Yufeng came out to praise, although it sounds flattering, but what he said was sincere. After all, in less than a year, he used 6 million Hong Kong dollars to make an extra profit of 18 billion Hong Kong dollars. How many people in this world can do that? to these.

Xia Boyin also said: "President Cheng is right. Thanks to the leadership of Mr. Lin, the company has made huge profits. At the same time, the company's market value has exceeded 200 billion Hong Kong dollars, making it the largest listed company in Hong Kong."

Not to be outdone, Peter Wei said, "Don't say 200 billion Hong Kong dollars. I believe that under the leadership of Mr. Lin, the company will reach 500 billion Hong Kong dollars in a few years, and the market value of [-] billion Hong Kong dollars will sooner or later."

"Hahaha"

Lin Baicheng was very happy when he heard the words. After laughing, he waved his hands and said, "Don't talk about flattery, let's talk about how to use this profit of up to 18 billion Hong Kong dollars."

Wei Li listened and said: "Mr. Lin, regarding the company's debts, before your acquisition, the company's short-term debts were 7.6 million Hong Kong dollars, and the long-term debts were 5.7 million Hong Kong dollars. The company, the company's debt has decreased, and now the short-term debt is 5.3 million Hong Kong dollars, and the long-term debt is 4.4 million Hong Kong dollars, a total of 9.7 million Hong Kong dollars in debt."

"However, Mr. Lin, after you acquired the company, you asked the company to borrow 5 million Hong Kong dollars from HSBC. This money was used as the principal for investing in gold futures, so the company's total liabilities are 14.7 billion Hong Kong dollars."

"In terms of debt, the short-term debt of 5.3 million Hong Kong dollars must be repaid by the end of the year, the shortest long-term debt must be repaid next year, and the longest debt must be repaid the year after."

"Do you have any suggestions?"

Lin Baicheng didn't express his thoughts right away, but asked Wei Li and the others. He wanted to hear their thoughts first, to see if they were the same as his thoughts, and whether their thoughts would be better.

Wei Li is the president, so of course he first expressed his thoughts: "This time the company made a profit of 18 billion Hong Kong dollars, which is enough to pay off all the finances, so except for the 5 million Hong Kong dollars in the new loan from HSBC, all other debts can be paid off in one lump sum. Today, the company’s market value exceeds HK$200 billion, which is a high-quality asset. After the debt is cleared, as long as the company has capital needs, it can obtain more funds from bank loans or bond issuance.”

"The remaining funds of about 8 million Hong Kong dollars after paying off the loan, if you personally need Mr. Lin, the company can distribute dividends, and Mr. Lin can get 4 million Hong Kong dollars in dividends. The company's dividends do not need to pay taxes Yes, Mr. Lin, you can get all the money."

If possible, as the president of Hutchison Whampoa, Wei Li hopes that all the funds will stay in the company as development funds, but the shareholders' thinking is definitely different from that of the management. He knows that shareholders want to pay dividends and get cash, so what he can do is Try to reduce the funds for dividends, and pay off the company's debts first.

Without the debt pressure of nearly 10 billion Hong Kong dollars, even if the company does not have a lot of cash, it can still obtain the funds needed to develop the company through loans or bond issuance. The situation is not bad.

(End of this chapter)