People in Hong Kong create super chaebols

Suzhou's acquisition of land and secret purchases of large quantities of land and properties did not improve the real estate market in Hong Kong.

Many British forces completely lost confidence in Hong Kong because of that one person's fall, and they were afraid that if they ran away too late, they would lose even their pants.

Therefore, many British people who own a lot of properties and land have been selling off their fixed assets in Hong Kong, trying their best to escape from Hong Kong as soon as possible.

It's not just the British, but also foreigners from other countries in Hong Kong and some local people in Hong Kong who have this idea.

Therefore, from 1983 to 1984, Hong Kong experienced a wave of immigration, and many people sold their assets at a low price and immigrated to the United Kingdom, Singapore, the United States, the United States of America and other places.

How could Su Cheng miss such a good opportunity?

He is well aware of the future development of Hong Kong and knows that this real estate crisis will only last until December next year.

After the agreement is signed, Hong Kong's real estate market will gradually pick up, and may even soon enter a new round of skyrocketing prices.

Inside the headquarters building of Wheelock Group, John Madden faced the current predicament with a frown and a serious expression.

In the past few years, he has gone against all odds and shifted the group's strategic focus to the shipping industry. The core of his strategy is to release the land resources held by the group, that is, to demolish and rebuild the properties on its land and sell them at high prices when the real estate market is booming, so as to recover huge amounts of funds and invest in the expansion of shipping business, purchasing a large number of bulk carriers with the intention of rapidly expanding the fleet.

Indeed, this strategy effectively helped Wheelock Group avoid the direct impact of the industry crisis before the real estate market bubble emerged, as it had successfully sold a large number of properties at the market peak, ensuring relative financial stability.

However, behind the seemingly wise transformation, the challenges of the shipping business were far beyond expectations, dealing a heavy blow to the group.

The volatility and uncertainty of the freight market, coupled with the complex and changing global economic environment, have caused Wheelock Group to encounter unprecedented difficulties in this new battlefield.

The large amount of investment in bulk carriers failed to bring stable returns as expected. Instead, the group fell into operational difficulties due to the imbalance of market supply and demand and the plummeting freight rates. The group had to bear huge operating costs and financial losses.

The root of this strategic deployment stems from John Madden's cautious consideration and lack of confidence in Hong Kong's future development prospects, which in turn promoted the strategic transfer of assets, aiming to allow the core assets of Wheelock Group to "set sail" and place their hopes on a wider ocean.

During this process, Wheelock Group unexpectedly played an important role in the asset restructuring of Global Shipping Group, taking over a large number of Global Shipping Group's ships. It not only rapidly expanded its own fleet size through mergers and acquisitions, but also actively ordered new ships to accelerate expansion.

However, this series of radical operations also quietly laid hidden dangers, causing Wheelock Shipping's debt burden to become increasingly heavy and its profitability to decline sharply.

Entering the 80s, with the adjustment of global economic structure and changes in the international trade pattern, the world shipping industry gradually entered a recession cycle. This industry-wide predicament inevitably affected the Wheelock Group.

Against this backdrop, Wheelock Group has suffered greatly and is facing unprecedented challenges and pressures.

In contrast, King Bao showed extraordinary wisdom and foresight. He took a development path that was completely opposite to that of John Madden, and steadily transferred the Bao family's assets from the turbulent sea to the solid land.

This strategic adjustment not only enabled him to successfully seize the controlling stake in the commercial giant Wharf Holdings, but also gradually reduced the size and carrying capacity of the fleet of Global Shipping Group, thereby effectively avoiding the risks that the shipping industry might encounter in the future.

Looking back now, the decision made by the charter king at that time was undoubtedly a highlight of his career. This far-sighted layout enabled him to cleverly avoid the shipping industry storm that plunged many shipping companies into a financial quagmire.

Relying on the solid platform of Wharf Holdings, the Bao family quickly emerged as an important force in the real estate, hotel and warehousing industries.

Although the real estate industry has also encountered fluctuations and challenges, Hutchison Whampoa's unique operating model - focusing on developing its own land and avoiding blindly following the trend of speculating in properties when prices are high - has effectively reduced its losses.

It is particularly worth mentioning that Wharf's real estate business has always adhered to rental collection as its core profit model. The continued stable income from high-quality properties such as Harbour City has brought the Bao family a steady stream of cash flow and generous returns.

This stable and long-lasting profit model is undoubtedly the best footnote to the investment wisdom and strategic vision of the charter king.

In comparison, John Madden's decision-making was clearly much less effective.

Back to 1981, when Su Cheng had just taken over the helm of Wheelock Group, that year, Wheelock Group achieved a pre-tax profit of HK$14.31 billion thanks to its strong profitability. This figure was enough to rank among the top 20 in Hong Kong's business community, including many well-known companies under Su Cheng.

If it weren't for such fierce competition, Wheelock Group would even have a chance to advance into the top ten.

However, the good times did not last long. As the global shipping industry entered the abyss of recession, Wheelock Group's profitability took a sharp turn for the worse.

Last year, its pre-tax profit shrank to less than HK$1 billion, and this year it is expected to further shrink to a dismal level of HK$300 to HK$400 million.

Although it is still able to maintain profitability at present, the declining trend year by year has clearly revealed the reality that the group has suffered heavy losses in recent years.

If this trend continues, Wheelock Group may face a more severe financial crisis next year, with heavy debts and even the possibility of triggering liquidation alarm.

At that time, Wheelock Shipping will have to reluctantly sell off its hard-earned fleet assets at a low price in exchange for cash flow. This scene is undoubtedly the direct consequence of John Madden's strategic mistake.

Therefore, it can be said that John Madden is to blame for the current predicament of Wheelock Group.

On the morning of July 1983, 7, Sioux City received a call from John Madden, who sounded exhausted.

"Mr. Su, our Wheelock Group will hold a board meeting at 10 o'clock tomorrow morning. Please attend on time." John Madden said with a wry smile.

"Okay, Mr. John, I will attend on time. What is the purpose of this board meeting?" Su Cheng asked.

"This board meeting was not initiated by me, but by Mr. Zhang Yulong. I was only responsible for notification," John Madden replied.

"Okay, I understand, Mr. John, see you tomorrow." Su Cheng replied.

"See you tomorrow!"

After hanging up the phone, Su Cheng couldn't help feeling a little surprised. He had never expected that the person who convened this board meeting would be Zhang Yuliang.

Before Su Cheng officially became the largest shareholder of Wheelock Group, Zhang Yulong had always been the group's major shareholder behind the scenes. However, he always maintained an aloof attitude and never got involved in the specific management affairs of the group.

John Madden, with a large number of B shares in his hands, even though his share ratio is not as high as Zhang Yulong's, is able to sit firmly on the throne of chairman of the Wheelock Group because the Zhang family has no intention of fighting for power in Wheelock.

When Su Cheng later gradually increased his shareholdings and became a major shareholder of Wheelock, he mainly held A shares, which also limited his direct influence on the controlling rights and made it difficult for him to easily shake the existing power structure.

It is undeniable that although the B-share system is not completely transparent and open, it has indeed demonstrated its unique value in maintaining the stability of controlling rights.

This may also be an important reason why, despite the frequent acquisition wars in recent years, Wheelock Group has been able to remain relatively calm and not become the target of public criticism.

However, Sioux City is an exception.

He understood the historical context of Wheelock, and was even more aware of the inevitable trend that John Madden would eventually fade out of the group's stage.

It is based on such forward-looking judgment that Su Cheng made early arrangements and careful planning, hoping that sooner or later he would control this behemoth.

As for Zhang Yulong, he actually has some connection with Suzhou.

At the beginning, the two commercial buildings, the International Building and the Federal Building, acquired by Suzhou City were actually developed by Zhang Yulong.

In 1971, Zhang Yulong controlled a Federal Realty Company Limited, which was eventually acquired by Wheelock, but Zhang Yulong also became a major shareholder of the Wheelock Group.

Although Zhang Yulong does not take charge of the matter, he holds a large number of Hutchison Whampoa shares and must be concerned about the company's operating conditions. Now that Hutchison Whampoa's profits have plummeted, this involves the interests of the Zhang family.

Su Cheng quickly figured out the cause and effect. Although Zhang Yulong is no longer the major shareholder of Wheelock Group and Su Cheng is the major shareholder, he is still the second largest shareholder and has the right to convene a board meeting.

It was obvious that Zhang Yulong intended to criticize John Madden at the board meeting.

Su Cheng doesn't care about the little less dividend every year, but the Zhang family obviously doesn't want to.

There is only one super-rich man like Su Cheng in Hong Kong who is so powerful and wealthy.

It is said that Zhang Yulong went to Australia to start a business because of internal conflicts in the Zhang family. Apparently, he had to return from Australia because of the current operating conditions of the Wheelock Group.

The Zhang family has always been very low-key in Hong Kong. Due to the sharp drop in profits of the Wheelock Group and investment failures, they even considered withdrawing from the Hong Kong business community and focusing on developing overseas businesses.

Su Cheng suddenly felt that perhaps he could take advantage of this opportunity to acquire Zhang Yulong's shares.

Previously, Sioux City had always wanted to acquire John Madden's shares.

However, acquiring Zhang's shares now might allow the company to take control of the Hutchison Whampoa Group in advance.

In this way, he naturally doesn't have to care too much about John Madden's shares.

After hanging up the phone, Su Cheng no longer thought about the Wheelock Group.

For him, there was basically no escape from the Wheelock Group.

Whether he buys John Madden's shares or the Zhang family's shares, he can easily control the Wheelock Group.

As for another parallel world, Wheelock was eventually taken over by Bao Yugang, it is obviously impossible in this world.

Who can compete with Sucheng?
At least in Hong Kong, no one can compare with him.

Walk out of the study and look at the blue sky outside.

It is very hot in Hong Kong in July, and a wave of heat covers the whole earth.

However, it was very cool inside the villa.

The house is equipped with the most advanced technology of this era.

There is a swimming pool in the villa, and several women are playing in the water. There is a shade awning above the pool.

Gillian, May, Cherie Chung and Rosina Kwan were all there.

It's summer vacation now and Guan Jiahui doesn't have to go to school.

Moreover, after September, Guan Jiahui will officially enter her senior year. If she studies for one more year, she will be able to graduate from the University of Hong Kong.

It is worth mentioning that when the real estate market was at its peak in 1981, Su Cheng asked Guan Jiahui, Zhong Chuhong, Gillian, A Mei and others to sell the shops and houses they had previously invested in.

Several people were very obedient and chose to sell the properties without hesitation, thus earning a lot of money.

After all, to these women, Su Cheng is the god in their hearts!

As for these business matters, they just need to follow Su Cheng's advice and don't need to think too much about it.

Relying on their own investments, the assets of Guan Jiahui and Zhong Chuhong even reached tens of millions of Hong Kong dollars.

Later, when Hong Kong fell into a real estate crisis and the price almost reached its lowest point, Suzhou asked them to buy shops and houses in large quantities.

Not surprisingly, the properties they own have almost doubled compared to before the real estate crisis.
With all this going in and out, they naturally made a lot of money. Even without relying on Su Cheng, they could live a good life.

"Be careful, don't hurt the fetus." Su Cheng walked to the swimming pool with a smile and reminded worriedly.

Chung Chuhong and Gillian Chung are now in the second and third trimesters of pregnancy respectively, and their bellies appear to be getting bigger.

Especially Gillian, she should be able to give birth in another month.

"I know!" Cherie Chung covered her mouth and laughed.

The two were not actually swimming, but sitting on an inflatable swimming boat, splashing water on each other and playing around. It wasn't really dangerous.

However, Guan Jiahui and Amei were not pregnant, but at this time they were half-submerged in the water in the swimming pool.

Swimming is really comfortable in the hot summer.

At this time, Guan Jiahui playfully splashed water at Su Cheng.

Suddenly, the casual clothes Su Cheng was wearing became wet.

Su Cheng was not angry, but joined in the fun.

As for family, the most important thing is harmony and happiness!
In fact, Su Cheng also knew that Guan Jiahui was particularly envious of Gillian, Amy, Cherie Chung and others because they all had children with Su Cheng.

However, Guan Jiahui does not have a baby yet, so naturally she hopes to become a mother as soon as possible.

However, she now knows that it is not the right time.

Otherwise, it will have a bad influence to go to school with a big belly.

Although a university diploma seems to be of no use in her current situation, Su Cheng can even let her graduate early.

But Guan Jiahui insisted on finishing her studies. She didn't want to go to university just to go through the motions.

In this regard, Su Cheng naturally let her do as she pleased.

In the blink of an eye, the day passed.

Today is the day when Wheelock Group holds a board meeting.

So, in the morning, accompanied by the girls, he ate breakfast while reading the newspaper.

I didn't go out until nine o'clock in the morning.

One hour is enough to reach the headquarters of Wheelock Group. (End of this chapter)