Reborn in Hong Kong as a Tycoon

Chapter 502 Hutchison Loans, Shen Congee Doubts (Two in One)

HSBC.

On this day, Mr. Wei Li from Hutchison Whampoa and Cheng Yufeng came to visit Mr. Chen Porridge from HSBC.

This visit was contacted in advance, so Shen Porridge personally entertained the two of them in the office.

The three of them were polite first, and then Wei Li and Cheng Yufeng explained their intentions.

"Hutchison Whampoa wants to take out a loan?"

Knowing that Hutchison Whampoa wanted a loan from HSBC, Shen Congee couldn't help being a little surprised.

"Yes."

Wei Li nodded and said, "The company currently needs a sum of funds. Hutchison Huang and HSBC have many cooperations, so we first thought of HSBC. We also hope that Shen Daban can give a certain discount in terms of interest."

"HSBC has always paid the lowest interest rate to Hutchison."

Shen Congee said something, and then asked: "I wonder how much money Hehuang needs to borrow this time?"

"One hundred million dollars!"

Wei Li said aloud.

"Does the loan need dollars?"

When Shen Congee heard this, his heart was moved. The exchange rate between the U.S. dollar and the Hong Kong dollar is about 1:4.2. The large loans of enterprises are generally in round numbers, either 4 million Hong Kong dollars or 5 million Hong Kong dollars. It is rare for a loan of 4.2 million Hong Kong dollars. There is such a question.

Wei Li nodded: "Yes, we need dollars."

Shen Congee asked: "[-] million US dollars is not a small amount. I'm sorry to be curious, but I don't know what He Huang's funds are going to be used for?"

Wei Li answered: "There is nothing we can't say. He Huang needs funds for an investment in the United States, and he plans to open up a market there, so he needs a large amount of funds."

"Investment? What kind of investment?"

Shen Congee asked again, but he couldn't help feeling a little suspicious.

"It is to participate in the financing of a company and the business operation of the company."

This time it was Cheng Yufeng who answered aloud.

"Is that so? It seems that He Huang's business is getting bigger and bigger now."

Shen Porridge made a haha, and didn't ask any more questions, but said: "After all, [-] million US dollars is not a small amount. I need to have a meeting to discuss it. After all, I am not the only one who has the final say on the bank. At the same time, He Huang also needs to be ready. The collateral of the corresponding value will do. It will take a little time to discuss the meeting, but I will give you two answers as soon as possible."

Wei Li said aloud: "He Huang has already prepared the collateral, so Daban Shen doesn't have to worry about that."

Shen Congee said to the two: "Currently, Hutchison is not counting the more than 20 billion Hong Kong dollars in property investment loans, and the rest of the loans add up to nearly 20 billion Hong Kong dollars. If you include the current 20 million U.S. dollars in loans, it will be as high as more than 50 billion Hong Kong dollars. .Based on Hutchison’s current net assets of more than 40 billion Hong Kong dollars, a debt ratio of almost [-]% is not low, which will inevitably affect Hutchison’s future loans.”

"Although Hutchison's debt ratio is high, its profitability is not bad."

Wei Li replied and said: "At present, the real estate prices in Xiangjiang are constantly rising, and one of Hutchison's main businesses is real estate. The high real estate prices have benefited Hehuang a lot. The other thing is the property investment that Shen Taiban just mentioned. That piece, Hutchison invested more than 20 billion Hong Kong dollars last September, based on the current property price, the value has increased by nearly 50%, and the asset value has increased by about 10 billion Hong Kong dollars.”

"Once necessary, Hutchison can choose to sell these investment properties, which will not only bring a huge profit to Hutchison, but also reduce Hutchison's asset-liability ratio, which can be said to kill two birds with one stone."

What Wei Li said about Hutchison Whampoa's investment in properties is no secret to the outside world, especially HSBC, which is responsible for providing most of the loans, so Wei Li said it directly without psychological pressure.

Shen Porridge smiled and said: "HSBC has never doubted Hutchison's ability to repay debts. If Hutchison still needs loans in the future, HSBC will open the door at any time."

"Thank you HSBC for supporting Hutchison."

Wei Li thanked him aloud, but he knew very well that Hutchison Whampoa could get a loan only if there were no problems in the company's operations. Once something happened to the company, it would be great if HSBC could not make trouble, not to mention sending charcoal in the snow.

Banks give umbrellas on sunny days and take them away on rainy days. It’s not just a talk, it has always been done this way.

Shen Congee said: "The details of the loan will be discussed in detail after I have a meeting here to make a decision."

"Trouble Taipan Shen."

Wei Li said something politely.

After the matter was settled, Wei Li and Cheng Yufeng did not stay in HSBC any longer, and bid farewell to Shen Congee.

Shen Porridge didn't keep the two of them back either, and after sending them out of the office, he called the secretary outside.

"Have someone check to see if Hutchison Whampoa has recently invested in the United States, or if there is any business expansion there that requires a large sum of money."

"Yes, Daban, I'll send someone to investigate right away."

"Keep this matter secret, don't let Hutchison Whampoa notice, you only have two days at most."

"I see."

"Well, you can arrange it."

Shen Porridge sent the secretary away, and fell into deep thought.

Hutchison Whampoa suddenly came to borrow 2 million U.S. dollars. The reason why Shen Congee wanted to find out where Hutchison Whampoa’s funds would be used was because he suddenly wondered if there was something wrong with Hutchison Whampoa’s investment of [-] million U.S. dollars. security deposit.

Shen Porridge clearly remembers that when Hutchison Whampoa’s gold futures investment was transferred, the international gold price was around US$250 per ounce. If Hutchison Whampoa shorted around this price, the loss would be about 16% at the current price. Hutchison Whampoa's investment uses five times leverage, so the loss is as high as 80%, and there is not much left in the US$2 million fund.

Now that the international gold price is around US$290/oz, it is entirely possible for the price to rise to US$300/oz. In this way, as long as the short-selling Hutchison Whampoa does not want to liquidate their positions and admit defeat, they can only choose to replenish their margin.

If you think about it this way, it makes sense for Hutchison Whampoa to suddenly need a loan of [-] million US dollars.

Of course, all of this is just a sudden thought of Shen Congee, and there is no real evidence, so Shen Congee asked the secretary to arrange someone to investigate to see if Hutchison Whampoa's investment and business development in the United States are true. thing.

Now HSBC holds more than one billion Hong Kong dollars in Hutchison Whampoa stocks. If Hutchison Whampoa’s investment is not a profit but a huge loss, then when the truth cannot be concealed, Hutchison Whampoa will inevitably be thundered, and HSBC’s investment will inevitably be destroyed. Huge losses occurred.

Therefore, HSBC must disembark before there is a possibility of huge losses.

Of course, these are just a little suspicion of Shen Congee now, it's still too early to say to jump ship.

Because of the time difference between the two places, Cheng Yufeng contacted Los Angeles at home in the evening, and it was just morning in Los Angeles where Lin Baicheng was.

"Mr. Lin, today I went to HSBC with Mr. Wei Li, and talked to Mr. Shen about the loan. Although Mr. Shen said that we need some time to discuss it, there should be no problem with the loan."

"Well, as long as there is no problem. Except for a part of the funds obtained from this loan, it will be used to participate in the financing of New Century Software Company, and the rest will be used for the expansion and development of Watsons in the United States. America has made it happen."

Hutchison Whampoa's participation in the financing of New Century Software Company will not cost much money. After all, the valuation of New Century Software Company will not be too high. At the same time, Hutchison Whampoa's share of financing will not be too much. Most of them are used for Watsons to open supermarkets in the United States.

The United States can be said to be the largest market in the world today, and Watsons has no reason to ignore this market. With the presence of the future giant Wal-Mart, Lin Baicheng feels that Watsons needs to develop in the United States first.Even if it cannot gain a firm foothold in the United States, it would be good to slow down Wal-Mart's expansion and give Watsons more time to expand in Southeast Asia and Europe.

Of course, Lin Baicheng still hopes that Watsons can gain a firm foothold in the United States. As long as it can win a small part of the market, then the valuation of Watsons and Hutchison Whampoa will be a great thing.

"Mr. Lin, don't worry, Watsons has accumulated a lot of experience in supermarket operations. There are also many supermarkets in the UK. We will first open a large supermarket in Los Angeles to accumulate experience, and then expand slowly, focusing on steady growth."

"It's good to know how to play steadily. You have to remember that this is the United States. Be careful with local competitors such as Wal-Mart."

"Don't worry, we have also encountered some small means in the expansion of Watsons, and we are all prepared and countermeasures for this."

"Since you say that, I don't have anything to remind you. Do things well."

Lin Baicheng paused, and then said: "Yufeng, you are working hard with Huang, try your best to make achievements, and handle interpersonal relationships well. Wei Li's time with Huang is only one or two years at most. When it is time to arrange for you to take over, everyone will have nothing to say."

"I understand what you mean, and I will not let you down."

Cheng Yufeng said solemnly, he couldn't help but feel a little excited, after all, this is the senior position of Hutchison Whampoa, the head of a group company with a market value of more than 200 billion Hong Kong dollars.

"I'll wait and see."

The reason why Lin Baicheng and Cheng Yufeng made it so clear is because they will become a family in the future, and Cheng Yufeng will soon become his brother-in-law.

Once Cheng Yufeng became Lin Baicheng's brother-in-law, Lin Baicheng would of course prefer Cheng Yufeng to manage the Hutchison Whampoa group, given that Cheng Yufeng's ability is not bad. Sometimes nepotism is not a bad thing.

After finishing the call with Cheng Yufeng, Lin Baicheng set his sights on the financing of New Century Software Company.

Although Lin Baicheng did not personally take over this matter, Isabella, who is in charge of this matter, will report to Lin Baicheng once there is progress.

At present, all institutions invited to participate in the financing of New Century Software have completed due diligence on New Century Software, and everyone has a clearer understanding of this company.

After completing the due diligence, the institutions that want to participate in the financing will communicate with the New Century Software Company, and the two parties will negotiate and negotiate on the company's valuation, without giving an inch, and striving for their own interests as much as possible.

In 1978, New Century Software had revenues of $6150 million and net income of $3930 million.

Although this is the annual revenue and profit of New Century Software Company in 1978, the actual sales time of the office software business of New Century Software Company was in July 1978, that is to say, sales began in the second half of the year.

Now it is also July, and the report of New Century Software Co., Ltd. is exactly up to June of this year, which is exactly half a year. Adding the half year of last year, it is exactly a whole year.

Firstly, in the first half of this year, New Century Software's revenue in the United States increased by about 13% compared with the second half of last year, reaching US$6950 million.As for profit, it rose 15 percent to $4520 million.

This is the revenue and profit of the US market in the first half of this year. New Century Software has also opened up foreign markets this year, but the revenue and profit are limited. After deducting operating costs, it is only more than 100 million US dollars for the time being.

After one year, New Century Software's annual net profit is about 8500 million US dollars.

In fact, New Century Software Company does not spend much money. Apart from the research and development of database software, it spent about 2000 million US dollars on the purchase of office buildings.

Nowadays, New Century Software Company still has tens of millions of dollars in cash lying in its account. The reason why New Century Software Company chooses to let New Century Software Company raise funds when it is not short of money is because New Century Software Company is an operating system for personal computers. Finally, there will be two big money eaters.

There are two more big money eaters, and the office software market in the United States is almost developed. At present, less than half of the market has not been won, and there will not be much income in the future. Therefore, it is better to take advantage of the current company's good management to raise funds sooner or later. financing in case.

At present, financing institutions and New Century Software have big differences in valuation negotiations.

Financing institutions believe that the market potential of office software is limited, and it has been almost developed by New Century Software Company, and the international market has not achieved good results at present, so the market value of New Century Software Company cannot be simply calculated based on the price-earnings ratio of ten times the profit, which is 3.5 million US dollars. This is the reasonable valuation of New Century Software Company.

Isabella, who is negotiating financing on behalf of New Century Software, of course holds the opposite opinion. She thinks that the international market alone is several times that of the United States. Still growing, New Century Software's current valuation of $2 million is quite reasonable.

The two sides agreed to ignore the database and personal computer operating system business, because these two businesses are still in research and development, the investment is not large, and there is no return, so it has little impact on the current valuation of New Century Software.

There is a double gap between the valuations of the two parties. It can be said that the difference is a bit too much. Fortunately, the institutions that intend to participate in the financing have not retreated because of this, and the two parties are still negotiating the valuation.

This kind of negotiation will definitely not be concluded in a short while. Fortunately, both parties are not in a hurry and decided to talk slowly.

New Century Software currently has tens of millions of dollars in its account, and the company's funds are fully sufficient to support the research and development of databases and personal computer operating systems, so the company is not so urgent about financing.

But there is no rush to return, Lin Baicheng is still very concerned about the financing, and if Isabella fails to handle it well, he will intervene in this matter.

(End of this chapter)