Reborn in Hong Kong as a Tycoon

Chapter 392 78 Corporate Annual Report (End) ([-] in [-])

in the library.

After Lin Shufang left the study, Lin Baicheng stayed in the study and took out the statistics of Cheng Yufeng's annual report to read.

For Qizhou Yingni Company, Lin Baicheng spent a total of 1.482 million Hong Kong dollars to complete the wholly-owned acquisition of this company and delisted it.

The acquisition and delisting of Qizhou Yingni Company by Lin Baicheng did not affect the company's business, and the replacement of the management team did not affect the company's business. The company is still the largest cement company in Xiangjiang.

In 1978, Qizhou Yingni Company's revenue was as high as 1.14 million Hong Kong dollars, but its profit was only a little over 15%, and its net profit was only nearly 1500 million Hong Kong dollars.No way, the profit of the cement industry itself is not high. Thanks to the blessing of Xiangjiang's largest cement company, Qizhou Yingni's cost is relatively low, so the profit will be a little higher.

What's more, with the recovery and development of the real estate industry, the cement industry will naturally benefit, so in 1978 there was a net profit of nearly 1500 million Hong Kong dollars.

After being acquired by Lin Baicheng, Qizhou Yingni Company has 24 square feet less industrial land in Hung Hom than before. This is the deal with Li Jiacheng at the beginning. Relatively speaking, the company’s potential has dropped a lot. After all, in Hong Kong Companies with more land have greater development potential.

However, there is no way around this. If Lin Baicheng hadn't cooperated with Li Jiacheng at the beginning, whether he could acquire Qizhou Yingni Company would have been a question mark.Compared with companies that cannot be acquired, the shrunken Qizhou Yingni Company is not unacceptable.

For the cement business of Qizhou Yingni Company itself, Lin Baicheng has a greater ambition, which is to monopolize Xiangjiang's cement business.Although Qizhou Yingni Company is the largest cement company in Xiangjiang, there are still a few companies engaged in cement production, and it is not without competitors.

In 1979, the cement of Qizhou Yingni Company will be sold at a reduced price, squeezing the profit margins of competitors, and it is completely acceptable to make less money in the short term.

As for the land on the Hung Hom side of Qizhou Yingni, it will not be developed for the time being, because the timing is not enough, and now choosing to change the industrial land to commercial land, the price difference to the Hong Kong government will be too much.Wait a few years, when the land price in Xiangjiang has plummeted due to Sino-British negotiations, it will not be too late to apply to the Hong Kong government to change the property of the land, and then the cost will be much less.

After changing the properties of the land on the Hung Hom side for development, Lin Baicheng will re-list the Qizhou Yingni Company, taking advantage of the bright prospects of the company to go public and collect money.

For an unimportant company like Qizhou Yingni, Lin Baicheng never thought that it would be a better choice to hold a sole proprietorship all the time, go public to collect money, and cash out large sums of money to develop in other industries.

Generally speaking, before the property of the land in the hands of Qizhou Yingni Company changed, this company could not provide too many benefits for Lin Baicheng, so he would not pay too much attention to this company.

Since Qizhou Yingni Company wants to monopolize Xiangjiang's cement business, it has to sell cement at a low price, so the company's revenue and profits will definitely not be much before this goal is achieved. Lin Baicheng doesn't even think about this company providing him with funds. Fortunately, he doesn't need to provide funds to support the company's development.

After reading the annual report of Qizhou Yingni Company, Lin Baicheng immediately looked at the performance of the company's annual report of HK Electric Group.

Hong Kong Electric Group, this company has a total of 13.1 billion shares, Lin Baicheng holds 5.1 million shares, accounting for a little more than 38.93% of the total share capital, and spent a total of 17.5 billion Hong Kong dollars on Lin Baicheng.

After obtaining the control of Hong Kong Electric Group, Lin Baicheng did not increase his shareholding in Hong Kong Electric Group, because the shareholding ratio of 38.93% is enough to complete the control of Hong Kong Electric Group.If someone wants to compete with him, he must buy a large amount of stocks from the stock market, which will cause the stock price to rise continuously, and even if he buys slowly, he will attract his attention.

If this happens, Lin Baicheng doesn't have to worry at all, as long as he buys about 10% of the shares, he can guarantee that no one can threaten his control over HK Electric Group.But the other party wants to acquire about 10% of the shares before he completes the increase of 49% of the shares, which will cost more than 30 billion Hong Kong dollars in cash at the current share price of HK Electric Group.

This is the current stock price of Hong Kong Electric Group. A large number of purchases will definitely cause the stock price of Hong Kong Electric Group to skyrocket. Therefore, if someone really competes with Lin Baicheng for control, even if there is 50 billion Hong Kong dollars in funds, it may not be enough.

As of Friday yesterday, HK Electric's stock price closed at HK$4.84, with a total market value of around HK$63.4 billion.

Lin Baicheng's acquisition of Hong Kong Electric Group did not cause the stock price of Hong Kong Electric Group to skyrocket too much, but because Hong Kong Electric Group obtained 8.14 million Hong Kong dollars in cash from additional stock issuance, it was a great benefit to Hong Kong Electric Group itself, so the company's stock price rose by one percent. Big waves are normal, after all, all shareholders have benefited.

Lin Baicheng's entry into the HK Electric Group still has a considerable impact on the HK Electric Group. First of all, the biggest impact is that the company has obtained 8.14 million Hong Kong dollars in development funds. In addition to using this money for the construction of larger-scale power plants, the HK Electric Group also It is also used to replace old wires in some areas, and to increase investment in the real estate industry.

However, these have no effect on the performance of Hong Kong Electric Group in 1978, what should be the performance of Hong Kong Electric Group in 1978 or what.

The reason is very simple. The construction of the power plant was not completed so quickly, and there was only investment in the early stage, but no income; for the replacement of old electric wires, Lin Baicheng requested that the electricity bill not be raised in 78, so the electricity bill in these areas did not increase this year; as for the investment in real estate, even more It is impossible to see benefits in two or three months.

Lin Baicheng joined the HK Electric Group in mid-to-late September, which could not affect the performance of the HK Electric Group in 1978, but the performance in 1979 will definitely improve compared to 1978.Whether it is the increase in electricity costs in some areas or the income from real estate investment, it will increase the company's revenue and profit.

According to statistics, the net profit of Hong Kong Electric Group in 1978 was 2.3 million Hong Kong dollars, a year-on-year increase of 15%.

Regardless of HK Electric Group's annual net profit of 2.3 million Hong Kong dollars, the market value before Lin Baicheng's acquisition was nearly 50 billion Hong Kong dollars, which seems to have a high price-earnings ratio of more than 20 times.In fact, HK Electric Group is an asset-heavy company with more than one billion Hong Kong dollars in its own assets. In addition to its leading position, it is normal to have a higher price-earnings ratio, which shows that the market is optimistic about it.

Of course, the capital market is optimistic about Hong Kong Electric Group. The electricity business is a public utility. Residential households and factories all use electricity. It is a company that guarantees profits but does not lose. It basically has no risks. Risks are unexpected risks, such as explosions in power plants such accidents.

The total market value of Hong Kong Electric Group now exceeds 60 billion Hong Kong dollars. Lin Baicheng's attitude towards this company is definitely different from that of Qizhou Yingni Company. He will continue to strengthen his control over the management of Hong Kong Electric Group, and at the same time lead the expansion The investment in the real estate industry will continue to grow the HK Electric Group.

Finally, there is Hutchison Whampoa. As of yesterday, Hutchison Whampoa's closing price was 63.35 Hong Kong dollars, with a total market value of more than 250 billion Hong Kong dollars.

The international gold price has risen to nearly 240 US dollars per ounce. It is reasonable to say that Hutchison Whampoa’s stock price should rise again, and even hit the previous high of 70 Hong Kong dollars. However, Hutchison Whampoa’s stock price has not risen much. It has been fluctuating recently .

The reason for this is that Lin Baicheng's offshore company is constantly selling the Hutchison Whampoa stocks in his hand, which suppresses the stock price of Hutchison Whampoa in a disguised form. It's hard to go higher.

Lin Baicheng, a Hutchison Whampoa company, was acquired in early 1978. Now he holds 1.996 million shares, accounting for 49.9% of the total share capital. For this, he spent a total of 15.0236 billion Hong Kong dollars, which is about 15 billion Hong Kong dollars.

However, Lin Baicheng used Hutchison Whampoa's funds to do long gold futures. Later, because of a profit of 18 billion Hong Kong dollars, Hutchison Whampoa made a huge dividend, and took out 6 million Hong Kong dollars in dividends to shareholders. Lin Baicheng, who holds 49.9% of the shares, received 2.994 million Hong Kong dollars, nearly 3 million Hong Kong dollars in funds.

The 3 million Hong Kong dollars in dividends do not need to pay taxes. In other words, Lin Baicheng’s real investment in Hutchison Whampoa is 12 billion Hong Kong dollars plus more than 200 million. In this huge investment, more than 200 million Hong Kong dollars can basically ignored.

Today, the total market value of Hutchison Whampoa is 253.4 billion Hong Kong dollars. From the book point of view, Lin Baicheng's investment has increased by a little more than ten times, and it has only been about a year, so the high rate of return can be seen.

If it is replaced by other shareholders, even if it is an ordinary shareholder, as long as Lin Baicheng did not sell his stocks after he took over Hutchison Whampoa, then the stock price of less than 7 Hong Kong dollars at that time became the current stock price of 63.35 Hong Kong dollars, which is almost a tenth increase. times, everyone earns about the same.

It's just that the stock price of Hutchison Whampoa fluctuated violently many times in 1978. There are basically no investors who can really hold the stock without moving since Lin Baicheng took over Hutchison Whampoa. A large number of stockholders sell their stocks at a certain price, and few people will earn this ten-fold long-term investment.

The reason why I say few rather than none is because there is such a kind of people who don’t look at it for several years after buying stocks. Although there are very few such people, there is such a possibility that there really are such people If so, then his investment has doubled by about ten times.

Speaking of Hutchison Whampoa Company, Lin Baicheng’s net assets of Hutchison Whampoa before he took over were about 35 billion Hong Kong dollars. Later, Lin Baicheng used Hutchison Whampoa’s funds to do long gold futures, and used the company’s funds to buy back when Hutchison Whampoa was shorted. Buying stocks, the two combined big profits made the company's net assets exceed [-] billion Hong Kong dollars.

Afterwards, the British-owned family of Hongkong worked together to short Hutchison Whampoa. Lin Baicheng once again asked Hutchison Whampoa to repurchase shares, making a fortune, and Hutchison Whampoa’s net assets increased again, reaching as much as 48 billion Hong Kong dollars, a distance of 50 million Hong Kong dollars. The net assets of [-] million Hong Kong dollars are not much different.

Of course, the net assets calculated here do not include Hutchison Whampoa's long investment in gold futures, because the investment here has not yet been settled, and the amount of assets is difficult to calculate.It may be a profit this month, but it will become a loss next month, and it is not meaningful to calculate it into the net assets.

Speaking of which, Hutchison Whampoa's debt is not low, as high as more than 40 billion Hong Kong dollars.Among them, the loan of HK$5 million is for the long gold futures side, HK$26.2 billion is for property investment, and the remaining HK$[-] million is for the loan needs of real estate and retail businesses.

Especially in the real estate business, it is impossible to use all of Hutchison Whampoa's own funds for real estate development. It must find a bank for financing, otherwise Hutchison Whampoa will not be able to develop too much land at all with its strength.

Although Hutchison Whampoa has to pay a lot of interest every month due to the large number of loans, but as long as the land price in Xiangjiang is on the rise, the current investment will be earned back several times in the future.

Not counting the huge income from gold futures brought by Lin Baicheng to Hutchison Whampoa, because Hutchison Whampoa sold a large number of loss-making or less profitable enterprises in 78, it completed the slimming and streamlining of the group company. The company's net income in 78 The profit was HK$2.4 million.

If it is really calculated, the profit of Hutchison Whampoa in 1978 is of course very large, reaching the level of 30 billion Hong Kong dollars, but in this way, the company will have to pay too much tax this year. The two industries have invested heavily, so the company's book profit after accounting is 2.4 million Hong Kong dollars, which is more than double that of last year's [-] million Hong Kong dollars.

Of course, corporate income tax is also related to the company's revenue, so even if Hutchison Whampoa's profit in 1978 was only 2.4 million Hong Kong dollars, the tax to be paid was not a lot at all.Fortunately, all those who can avoid taxation within the rules do the accounting, and have paid as little tax as possible, and the remaining taxes to be paid are unavoidable.

There is no need for Lin Baicheng to worry about the tax issue. He believes that the company's management and professional accounting firm will do a good job. Anyway, Lin Baicheng will not let him waste money for nothing.

"The stock price of Hutchison Whampoa will definitely rise again in 79, and it will rise sharply again in the early 80s. At that time, I should also reduce some shares. I will reduce my holdings at a high level and cash out a large amount of funds. After the stock price drops to a certain level Then buy it back. This will not only give me a lot of cash to use, but also make a lot of money, why not do it.”

After reading the annual report, Lin Baicheng couldn't help thinking to himself.This kind of thing involves the prediction of the high international gold price, so it is not easy for Lin Baicheng to discuss with others. He has to think carefully about how many shares he should reduce his holdings at that time.

However, there is still more than a year before the international gold price reached its peak in early 1980, so Lin Baicheng does not need to rush to make a decision yet, and he has about a year to think about it slowly.

Lin Baicheng even had an idea, that is, when he finished reducing his holdings of stocks, he could ask Hutchison Whampoa to issue additional shares to the outside world, and withdraw funds at a high level as the company's development funds.This is his general idea. If it is feasible and how to do it, he will have to consult a professional at that time.

Anyway, it meant the same thing. When the stock price of Hutchison Whampoa followed the international gold price soaring, try to find a way to get more benefits for him and Hutchison Whampoa.

(End of this chapter)