Reborn in Hong Kong as a Tycoon

Chapter 829 1980 Annual Report ([-])

The morning thus passed.

There are many subsidiaries under Hutchison Whampoa, Asia Star Media Group, and Galaxy Financial Group. Lin Baicheng has a lot of corporate annual reports to read, and with the break in the middle, the morning will pass quickly.

In the afternoon, after two o'clock, Lin Baicheng came to Galaxy Financial Group to continue reading the annual report.

Hong Kong Electric Group, in 79, because the British capital was the major shareholder of the company, Lin Baicheng announced that the company's profit was not high in order to suppress the stock price, but the real situation is that the company earned 79 million Hong Kong dollars in 4.15.

In 80, due to investment and construction of factories in the mainland, and the unwillingness of the major shareholder, the British capital, to continue to seek trouble, which affected the operation of Hong Kong Electric Group, so the company's revenue and profit for the year were greatly affected, and the annual profit was only 2.2 million Hong Kong dollars. Compared with last year, it is nearly 2 million Hong Kong dollars less, which is a bit big.

However, according to the 79 annual report published by Hong Kong Electric Group last year, the company's net profit in 80 still increased year-on-year.

That is to say, in the eyes of those who don't know, Hongkong Electric Group's revenue and profit have both increased in 80, and it seems that the company is running well and developing smoothly.

But this is not the case. The HK Electric Group currently has a market capitalization of almost HK$90 billion, but its annual net profit is only HK$2.2 million, and its price-earnings ratio is about [-] times, which is quite high.

In today's era, there may be high-tech companies, but they definitely don't have a price-earnings ratio that is tens or hundreds of times larger, at most twenty or thirty times the price-earnings ratio.

Most companies usually only have a price-earnings ratio of [-] to [-] times. Only those companies with great reputation and good performance every year can have a price-earnings ratio of more than [-] times. This is the market norm.

Of course, if you encounter a bull market or a stock market crash, it will definitely be different.During a bull market, the P/E ratios of various companies will definitely increase, perhaps [-], [-], or even [-] times; during a stock market crash, when the market has no confidence, the P/E ratios of listed companies will definitely decrease, and a P/E ratio of less than ten times is also very normal.

"It's a pity for Hongkong Electric Group. British capital is really harmful."

After reading the annual report of HK Electric Group, Lin Baicheng was very dissatisfied with the British capital.

If there is no British investment to find trouble, after Lin Baicheng took over the HK Electric Group and spent money to replace the lines for the HK Electric Group, the HK Electric Group will increase the electricity fee, and the annual revenue and profit will be greatly improved. Lin Baicheng should have made more money before taking over.

But now, the profitability of Hong Kong Electric Group in the past two years is not as good as when Lin Baicheng did not take over, and the company's stock price has not risen much. The shareholders who bought the company's stock have suffered a lot.

Compared with before Lin Baicheng acquired Hong Kong Electric Group, the current share price of Hong Kong Electric Group has risen a lot, but the Hong Kong stock market has gone up as a whole in the past two years, and the stocks of most companies have risen. Even if Lin Baicheng did not acquire Hong Kong Electric Group, HK Electric's share price will also follow the rise of the Hang Seng Index, and it is very likely that it will rise even more.

After all, with the scale of Hong Kong Electric Group's billions of Hong Kong dollars, it can be regarded as a heavyweight in the Hang Seng Index. Benefiting from the overall rise in the stock market, the company's share price should have increased by a lot.

Now that the British capital has left the HK Electric Group, the operation and development of the HK Electric Group will definitely improve in the future. As long as there are no major problems, the HK Electric Group will develop in a good direction.

However, Hong Kong Electric Group has a competitor in CLP Power in Hong Kong. Although the scale of CLP Power is incomparable with Hong Kong Electric Group, the Kadoorie family belongs to the British capital, and because the relationship between the British capital and Lin Baicheng has deteriorated, British capital related Enterprises will definitely switch to electricity from CLP Power. If Hong Kong Electric Group wants to develop well, it must suppress and defeat its opponent, CLP Power.

Whether or not CLP can be defeated depends on the abilities of Lin Baicheng and the management of HK Electric Group.

Qizhou Yingni Company.

Since this cement company was privatized by Lin Baicheng, it has started to implement the strategy of reducing prices to sell, in order to monopolize the entire cement market, or at least occupy a larger share of the market.

In 79, when the price of cement was reduced, Qizhou Yingni Company had a revenue of 1.38 million Hong Kong dollars, an operating profit of 1860 million Hong Kong dollars, and a net profit of 1550 million Hong Kong dollars, showing good profitability.

In 80, the price of cement continued to drop, but due to the upward trend of the real estate industry, the supply of cement was in short supply, so there are still two cement companies surviving in Xiangjiang, except for Qizhou Yingni, but the scale of these two companies is not large. Yingni Company has occupied [-]% of the Xiangjiang cement market, and it is difficult for the other two companies to compete with Qizhou Yingni.

In addition to the Xiangjiang market, the branch factory established by Qizhou Yingni in Shekou in 79 has already started production.Because there are many businessmen going to Shekou to build factories, and there are a lot of infrastructure in Shekou like road construction, so the cement is not worried about sales, and the Shekou branch factory has already started to generate income.

整个80年，靑洲英坭营收1.72亿港币加1200万RMB，营业利润1930万港币加173万RMB，净利润1480万港币加162万RMB。

In the Xiangjiang area, due to the price reduction of cement, more cement was sold, and the revenue increased a lot, but the gross profit margin decreased, and the profit showed a considerable decline.

At the same time, the income generated in the Shekou area is all in RMB. The middle and high-level managers who worked in Xiangjiang in the past were paid by Qizhou Yingni Company in Hong Kong dollars, so the expenditure in Hong Kong dollars will increase, and the RMB expenditure will be very little, resulting in Net profit in Hong Kong dollars decreased a lot.

At the current branch factory in Shekou, it is not that Qizhou Yingni Company excludes mainlanders and does not recruit mainlanders for middle and high-level management, but that it cannot recruit qualified people at all.

Of course, there are also cement companies in the mainland, but they are state-owned units, and it is impossible for them not to work in your private company without an iron job.

In this day and age, the people of Huaguo attach great importance to iron rice bowls. Even if you are hired by a foreign-funded private company with several times the salary, they will not choose to change jobs.

After reading the annual reports of HK Electric Group and Qizhou Yingni, Lin Baicheng took a short rest.

After about 10 minutes, continue to read the annual report.

Venus Electric.

It was still an empty shell in 1978. Since 79, this company started to buy, buy, buy, buy and buy technology patents, and started to build factories. Air conditioners, refrigerators, washing machines, TVs, ovens and other home appliances. With these home appliances, Venus Electric appliances began to live up to their name.

In order to acquire these home appliance technologies and build factories, Lin Baicheng invested a total of 8.5 million Hong Kong dollars.

In 79, the revenue of Jinxing Electric was only 5600 million US dollars, and the net profit was only 960 million US dollars, which was just over 4000 million Hong Kong dollars. Compared with the investment of 8.5 million Hong Kong dollars, the net profit in 79 was very small. And less.

In 79, the revenue and profit were low, and there was no way around it. After all, the home appliance technology patents were just acquired in that year, and the factory was just established. It didn’t take long for the products to go on sale, not to mention the channels for product sales that had to be established.

Therefore, the low revenue and profit of Jinxing Electric in 79 is acceptable.

In 1980 last year, Jinxing Electric ushered in rapid development.

For real estate under the name of Hutchison Whampoa, there will be supporting home appliances for house sales, and these appliances are purchased by Hutchison Whampoa from Jinxing Electric in large quantities.

In doing so, Hutchison Whampoa itself has no loss. Anyway, the price of home appliances is directly included in the house price, and matching home appliances can make the house sell better.

The tenant who bought the house also has no loss. The cost price of the home appliances purchased by Hutchison Whampoa is calculated in the house price, and Hutchison Whampoa purchases a large number of home appliances so that the home appliance is much cheaper than the retail price, which means that the tenant has bought a set of cheap home appliances.

It can be said that this is a good thing for three wins.

In addition, the home appliances of Jinxing Electric can also be sold through the channel of Watsons. Because it is a brother company, the channel fee is slightly cheaper than that of its peers.

Jinxing Electric is also doing self-operated business, opening a self-operated home appliance store, and providing door-to-door installation services for large home appliances.

The addition of all aspects made Jinxing Electric's home appliance brand just go on sale, but it quickly tore off a certain market share, which caused the company's revenue and profit to increase several times in 80.

In 1980, including the Venus TV subsidiary in the United States, the total revenue of Venus Electric was as high as 9.25 million Hong Kong dollars, the operating profit was 2.87 million Hong Kong dollars, and the net profit was 2.36 million Hong Kong dollars.

In this day and age, making home appliances is still very profitable, and the profit margin is relatively high, especially in emerging markets.

At present, most of Jinxing Electric's home appliance factories are located in Xiangjiang, and there is only one branch factory in Shekou in the mainland. The reason why all the factories have not been moved to Shekou is because Xiangjiang is Lin Baicheng's basic business, Lin Baicheng It is necessary to consolidate and even expand his basic disk.

What is a basic disk?
The number of enterprises in Xiangjiang, the impact of enterprises on people's lives, total wealth, taxes paid, the number of employees working for him, the number of families affected, etc.

The more of these, the greater Lin Baicheng's influence in Xiangjiang, and the more stable his fundamentals will be.

Therefore, it is impossible for Lin Baicheng to move all factories away from Xiangjiang, especially since his current social status in Xiangjiang is not stable, and there is a huge trouble of Xiangjiang's return, he needs the support of the general public of Xiangjiang, so that some people Don't be afraid to throw a mouse, and dare not do anything to him easily.

Galaxy Semiconductor, its annual report has summarized the annual report of its subsidiary Galaxy Semiconductor.

Galaxy Semiconductor and its subsidiary Galaxy Semiconductor can be said to be the company that Lin Baicheng invested the most but returned the least.

Lin Baicheng invested US$5 million in Xinghe Semiconductor for acquisitions, building factories and recruiting people. In 1979, Xinghe Semiconductor's net profit was only US$2400 million.

The reason why Galaxy Semiconductor can have a net profit of 2400 million US dollars is thanks to the two companies Galaxy Games and Xingyue Electronic Games. All the semiconductor accessories required for arcade machines and consoles are provided by Galaxy Semiconductor. Continuous production with no worries about the future, and stable profits.

Otherwise, if the factory continues to produce, but the product cannot be sold, or the price needs to be lowered to sell, then the company will not only make money, but it will be considered good if there is no huge loss.

Due to the huge investment in 1979, Lin Baicheng only invested 1980 million US dollars into Xinghe Semiconductor in 1, and the subsequent 1 million US dollars have not been spent yet. The reason why the investment in 80 was so little and the money has not been spent is because the 79 million US dollars invested in 5 was not spent in 79, and the unspent money was continued to be invested in 80. This is 80 This is the main reason why Lin Baicheng no longer needs to invest a lot.

Relying on arcade machines and Xingyue mainframes, as well as the developed home appliance company, Xinghe Semiconductor’s revenue and profit increased a lot in 1980, with revenue reaching 3.25 million US dollars, operating profit of 2750 million US dollars, and net profit of 1630 million US dollars.

Compared with 79, the operating profit increased in 80, but the net profit decreased.The reason is simple, that is, in the 80s, the company recruited some industry leaders and elite talents and provided them with high salaries, which led to a large increase in expenditure, which affected the net profit.

"The technology of semiconductor companies still needs to be improved."

This is Lin Baicheng's emotion after reading the annual report.

In technology industries like semiconductors, if the technology is at the world's advanced level, the profit margin is actually very high, 15%, 20% or even 30%. Unlike Galaxy Semiconductor, the current average profit margin is only about 8.5%.

The reason why it is so low is very simple. The technology is not advanced enough, which leads to an increase in cost, which affects profits.

As long as Galaxy Semiconductor's technology improves, profits will increase if the market and raw material prices remain unchanged.

It's just that the advancement of technology cannot be achieved by just touching the mouth. It needs to spend money on talents for research and development, and the technology can only be improved after repeated research and development.

Although Xinghe Semiconductor has invested a lot and does not make money, Lin Baicheng is psychologically prepared for this, so he is not disappointed after reading the annual report. He is very aware of the importance of semiconductor technology.

The current investment is all for making big money in the future and not being stuck by others.

After reading the annual report of Galaxy Semiconductor, Lin Baicheng contacted the secretary outside through the internal phone, and asked the secretary to call Qin Lan in.When reading the annual report before, the secretary came in and said that Qin Lan had something to report to him, and because the annual report of Galaxy Semiconductor was almost finished, he asked Qin Lan to wait outside.

"What's the matter, Director Qin?"

"Boss Lin, we have heard some news."

Qin Lan replied: "Chen Songqing of Carrian Group, through the help of HSBC Shen Congee Taipan, got on Jardine and Swire Group. HSBC and these two intend to take over the shares of Carrian Group from He Huang."

"It seems that this is his reward for choosing British capital."

Lin Baicheng couldn't help laughing when he heard the words. When the carrian group was hit by a thunderstorm, the three companies would be unlucky, but they didn't know how much assets Chen Songqing's carrian group could leave to their shareholders.

"At what price are they willing to buy the shares in Hutchison, do you know this?"

"Mr. Lin, this kind of thing is obviously a secret that only a few people know, and we have no way to find out." Qin Lan shook her head immediately when she heard this.

"It's fine if you can't find it, don't force it."

Lin Baicheng was not disappointed when he heard the words, he was just asking just in case.

After the report, Qin Lan went out. Lin Baicheng looked at his watch and found that there was still some time before he got off work, so he decided to continue reading the annual report.

(End of this chapter)