Hong Kong Island's New Rich Era

Chapter 290: Unification of Satellite TV

Xu Shubiao was stunned. He didn't expect Liu Zhicheng to have such a big appetite and actually wanted to squeeze him out of the mainland market.

Originally, he had some interest in the cooperation between the two parties.

"Mr. Liu is indeed the richest man in the world. His business methods are really brilliant. But I am also very optimistic about the mainland market. There is no way I will quit the business."

Liu Zhicheng was not surprised, as business negotiations were always conducted step by step.

According to history, Yan Bin would not intervene before 1995, so Liu Zhicheng had plenty of time to negotiate with Xu Shubiao.

Therefore, he said calmly: "This is normal. If nothing unexpected happens, the Austrian will also negotiate with you about the trademark issue when the time is right.

After all, he is the one who actually runs the business. If this issue is not resolved well, the company will go bankrupt sooner or later.

The situation in the mainland is more complicated. Not only does a joint venture need to be formed to obtain a license, but the formula also needs to be re-developed, and it also requires long-term promotion, so I considered proposing this cooperation.

The Xu family can also make long-term profits from raw materials and formulas, which can be said to be easier than us to make money. "

Seeing Liu Zhicheng's style, Xu Shubiao felt discouraged. He had originally wanted to take advantage of Liu Zhicheng's connections in the mainland to introduce Red Bull into the mainland market.

But now it seems that other people's appetite is really big, and they actually want to leave me alone.

"Mr. Liu, I cannot accept this model of cooperation." Xu Shubiao said directly.

Liu Zhicheng smiled and said, "If Mr. Xu has a better way to cooperate, please bring it up."

Xu Shubiao immediately said: "We can refer to the cooperation model of Austrian Red Bull. You hold 49% of the shares and we hold 51%."

After thinking for a while, Liu Zhicheng said: “It’s different in the mainland than in Austria, where a joint venture is needed to get a license.

That is, the mainland official enterprise needs half of the shares, so this model is not feasible."

"Even with Mr. Liu's connections, you can't get it done?"

"This is a matter at the G family level. How much influence can a businessman like me have?"

Xu Shubiao became disappointed. He was actually very optimistic about cooperating with Liu Zhicheng, provided that it was the same model as Austrian Red Bull.

Liu Zhicheng just reminded him that Austria would also discuss trademark issues with him, which made him a little uneasy for a while.

As you can imagine, the two sides did not achieve good results in this meeting.

After Xu Shubiao left, Liu Zhicheng immediately said to Yuan Tianfan: "Let Huangpu Beverage establish a functional beverage research and development project.

We registered the name 'Lehu' in the mainland, and also registered a patent for its appearance, using a golden can and designing a logo."

That thing relies on marketing. As for the formula, it can’t be 100% the same, but it can be almost the same.

Yuan Tianfan nodded and said, "No problem! But boss, do you think this functional beverage has a good market?"

Liu Zhicheng smiled and said: "This is natural, but in the end it still depends on marketing. There are many formulas for refreshing drinks, such as taurine, caffeine, vitamins, etc., which can promote human metabolism.

But the most important thing is advertising. When the time comes, we can come up with a catchy slogan and sponsor some domestic sports events, which will definitely boost sales.”

Yuan Tianfan said: "Yes. Our beverage and food company is becoming stronger and stronger. The 'Old Tan Pickled Cabbage Noodles' proposed by the boss is really a best-selling product."

Yuan Tianfan is accustomed to his boss's genius ideas. The key is that through practice, it has been proved that the boss's ideas are gradually being realized.

The two discussed the work of Huangpu Food Company. Although it seemed that Liu Zhicheng was very involved, in fact he was just setting the general direction, and the rest of the work was naturally completed by his subordinates.

Of course, as a boss, who is not like this? Does the boss need to research the formula of the beverage? Specific marketing is naturally completed by the management.

The boss only needs to grasp the general direction accurately.

After Yuan Tianfan left, Hao Qingwen came again to report on his work.

"Boss, we have signed a contract with designer Brennan Beer Goran from the United States. They will complete the design plan of Diamond Hill-Whampoa Plaza according to our requirements.

It is expected that the design will be completed by the end of October, construction will start at the end of the year, and completion will be in the spring of 10.”

Liu Zhicheng nodded with satisfaction. He was very happy with the construction period. It would be completed just in time for the real estate boom. By then, he could extend the lease period and make a lot more money.

For this plaza, the Whampoa Group’s requirement is to design a “Star Plaza” on the first floor, covering an area of ​​nearly 1 square feet, and designed it as an ideal location for holding events and exhibitions.

In a modern shopping mall, the most classic design is of course the internal plaza for holding events, which can achieve the effect of attracting traffic.

"Yes. The building area of ​​Diamond Hill Plaza in Whampoa is 60 square feet, with about 200 shops. It will become the largest shopping mall in East Kowloon, which is of great significance."

In addition to the 60 square feet shopping mall, Diamond Hill Plaza also has a 120 million square foot residential building, with a total investment of HK$60 billion.

If the five residential buildings were sold in 5, the company could have raised nearly HK$1996 billion, which was enough to recover the cost (including interest) and make a small profit.

The remaining 60 square feet of shopping mall is pure profit.

Shopping mall network has also been a key development direction for Whampoa Group in recent years.

Because of this, Whampoa Group is called the 'all-round real estate company' by investors.

In the development of real estate, office buildings, shopping mall networks and parking lots, Huangpu Group is the dominant player in almost every field, which makes investors marvel at Huangpu Group's strong ability to attract money.

As the largest real estate company, Huangpu Group started to develop comprehensively from the very beginning.

Because the company is like installing a water pump - it raised funds through share offerings, issued bonds, made financial profits, and took out large amounts of loans, obtaining tens of billions of huge funds. Which company can compare to this?

Therefore, the current net assets of Whampoa Group are really huge. It is conservatively estimated to be close to 2000 billion Hong Kong dollars, and it is still appreciating because office buildings are still surging this year.

Hao Qingwen added: "Boss, the Ho Tung family is interested in selling Tung Ping Building and Tung On Building in Mong Kok!"

Upon hearing this, Liu Zhicheng started thinking.

The Ho Tung family has a lot of properties: Tung Ping Building and Tung On Building in Mong Kok, Tung Ying Building (the predecessor of THE ONE shopping mall) in Tsim Sha Tsui, and Tung Shing Building and Tung Sang Building in Wan Chai.

另外，在深水湾有35号古堡式别墅、布力径6-10号大屋、山顶道75号晓觉园即山顶何东花园、渣甸山谷柏道19号。

"Don't worry about it. We don't buy buildings or shopping malls now, we just develop them ourselves!"

"Ok"

After Hao Qingwen left, Liu Zhicheng showed a smile. The Ho Tung family was not stupid. The reason they sold the two buildings at this time was simply because Jiuqi was approaching.

As high-ranking officials in Taiwan, the Ho Tung family (currently headed by Ho Sai-li) is naturally eager to sell some of its assets, implement the "egg philosophy" and diversify its funds.

And now, the property market is booming.

However, Liu Zhicheng knew that this family had sold a lot of assets around 2000 in its previous life.

At that time, the Asian financial crisis occurred, followed by the SAS crisis. From 1997 to 2005, Hong Kong's real estate market was at a low point.

Maybe this family is also afraid that after 97, Hong Kong will go into a sharp decline and lose all confidence.

Of course, the four buildings owned by the Ho Tung family in Mong Kok and Wan Chai were too small, and Liu Zhicheng really didn't like them.

The only building worth looking at is the Tung Ying Building in Tsim Sha Tsui, which can be rebuilt into Hong Kong's tallest shopping mall, THE ONE, with an area of ​​40 square feet.

In the tourist area of ​​Tsim Sha Tsui, it is naturally worth a lot of money.

As for other luxury properties, if they are for sale, Liu Zhicheng can consider taking over, but this does not include Ho Tung Gardens, which is expensive and troublesome.

Overall, Liu Zhicheng has now broadened his horizons and is no longer interested in these properties.

Liu Zhicheng never bought any more office buildings, shopping malls, or villas.

Logically speaking, it is still profitable to buy now and sell before 97.

However, he does not want to give outsiders the impression of being a "speculator" so as not to increase his bad reputation. After all, he is the richest man and there are some things he cannot do.

If you sold your property at a high price before the Asian financial crisis, this would be called "hedging because prices are too high."

After the financial crisis, Hong Kong real estate generally fell by nearly 6%, and he would buy properties at a low price, which is called "saving the market". In the past two years, Hong Kong real estate has soared. As a big real estate developer, Liu Zhicheng is easy to be attacked as a "leader in real estate speculation" if he speculates on properties.

Once the real estate market hits rock bottom and Liu Zhicheng chooses to enter the market, no one will think anything of it.

Of course, it cannot change people’s fear.

After all, few people dare to buy at the bottom, but there are many people who chase highs.

…………

Time flies, and it is already mid-May.

Sunday, May 5.

In the sea south of Xiangjiang Island, Liu Zhicheng entertained Li Zekai on his super yacht.

He saw envy in Li Zekai's eyes. Due to the family tradition of Li Chaoren's family, Li Zekai did not have the financial freedom like the rich second generation in later generations.

It is said that he still uses his own salary to rent a house in Canada, and he currently lives in a luxury house in Mid-Levels that he rents with his salary.

Based on the analysis of this situation, Liu Zhicheng and Ma have a clear idea. If Li Zekai wants to be independent, the best way is to sell Dragon TV and then use the money to start a business.

"Mr. Liu, your yacht is the first of its kind in Hong Kong. I'm afraid it must be worth hundreds of millions of Hong Kong dollars!" Li Zekai said enviously.

Liu Zhicheng patted his shoulder and said, "Just call me Brother Cheng. We are all young people, so why be polite? This yacht is worth exactly 1 million Hong Kong dollars. Don't be envious. You will have one soon."

"Brother Cheng, I'm not like you. I started from scratch and can spend money however I want. My family is quite strict!" Li Zekai immediately said in a friendly manner.

He had great admiration for Liu Zhicheng's legendary experience. Although the two were still "rivals", he found that Asia Satellite TV was really well run and he had some respect for it.

Liu Zhicheng said, "This is your father's training for you. You have run Oriental Satellite TV so well, and your father and your master have given you almost full power. You have already succeeded in starting a business. Let's not talk about other things first. Let me take you on a tour!"

"Okay, it won't be inconvenient!" said Li Zekai.

"convenient!"

Taking Li Zekai on a tour of the yacht made this super rich second-generation feel itchy.

But he knew that his father would not allow him to be so high-profile. Of course, if he made money, he would not care about his father's opinion.

Finally, Liu Zhicheng invited Li Zekai to the flying bridge, poured him a glass of red wine, and the two started chatting with each other over delicious snacks.

"Akai, Dragon TV has joined our ATV Group. Akai, you will be our director. In the future, you will also be the boss of Hong Kong Culture. What do you think?" Liu Zhicheng said intimately.

In fact, he calculated that Li Zekai's joining ATV would not pose any threat to his dominance, so he said it with ease.

As for equity, ATV’s current market value is HK$230 billion, which can be called a giant.

The valuation of Dragon TV in this life is at most HK$35 to HK$50 billion, which is less than the HK$63 billion in the previous life.

Li Zekai said: "Brother Cheng, of course I want to work with you, but I want to start a business even more.

So, if you are interested, you can give me an offer and I will see if I can sell Dragon TV.”

Of course there is no problem. Issuing new shares can be used to exchange for Dragon TV, or to raise funds to purchase Dragon TV. The principle is the same.

At present, Hong Kong has already abolished the rule of "issuing no more than 10% of new shares", so if Asia Television Group comes with the "10 for 3" strategy, it can easily swallow up Dragon TV.

Liu Zhicheng nodded and said, "Okay! How about 4 million US dollars (31.2 Hong Kong dollars)?"

Li Zekai's expression froze, and he immediately said, "Brother Cheng, this price is not like your style!"

This price is indeed very low, although Dragon TV is estimated to have invested only about HK$12 billion to HK$15 billion.

But after all, the operation was quite successful. The 2800 million viewers were real, and the satellite TV license was also very valuable.

Liu Zhicheng laughed loudly, and then said: "Don't worry! 4 million US dollars is to buy 65% ​​of the shares of Dragon TV. Of course, we hope that half is cash and the other half is ATV Group stock.

As for the remaining 35% of the shares, we need to make strategic arrangements because it may affect the relevant regulations of the Hong Kong government.

My idea is that the CKGSB and the Li family still control the satellite TV licensing body, CKGSB, of which you hold 52% and Asia Satellite TV only 48%;

The 65% controlling stake of Oriental Satellite Broadcasting is controlled by Asia Satellite TV. When the time is right, we will merge and you can still enjoy the long-term dividends from satellite TV."

Li Zekai was tempted at this time. Dragon TV has only invested more than 13 billion Hong Kong dollars so far, which is equivalent to a return of nearly 3 times the profit.

"Brother Cheng, I need to go back and think about it carefully!" said Li Zekai.

The thought of it made me excited, and Liu Zhicheng did not lower the price. It can even be said that the premium was very high.

The reason is actually very simple. In order to complete this deal, it doesn't hurt to let Li Zekai make more money.

The market value of Asia Satellite TV is already inflated, and Liu Zhicheng has no intention of participating in the share offering and fundraising, so the stock dilution will be allowed.

Assuming the total value of Dragon TV is HK$50 billion and Asia Television Group is HK$230 billion, Liu Zhicheng's shares will be diluted by about 20%, which still leaves him with nearly 40%.

As for Asia Satellite Television Group, Liu Zhicheng originally valued its influence more than its value.

Therefore, a 40% stake will not affect him in any way, and it is impossible for anyone to challenge his control, after all, he is super rich.

What's more, you can increase your holdings when you find an opportunity in the future.

When Li Chaoren heard that his youngest son and Liu Zhicheng had met and discussed the acquisition of Dragon TV, he was immediately surprised.

After all, he is the official chairman of the board of directors of Dragon TV, so he was surprised that Liu Zhicheng "bullied the child" and was also surprised at his son's strong "independent spirit".

But then again, he was also very happy that his youngest son's independence had been initially developed.

"If you sell Dragon TV to him, it will be like sending him to be the 'Media King of Asia'. He will be the real 'Boss' in Hong Kong in the future.

You know, Liu Zhicheng's rise has greatly squeezed the growth space of our major families." Li Chaoren has a long-term vision, so he said with doubt.

In Li Chaoren's opinion, if this deal is reached, it would be equivalent to the Li family "conspiring with a tiger" and also provide a cover for Liu Zhicheng.

That is, the licensed company is Changjiang Communications, which means that Liu Zhicheng cleverly circumvented the relevant regulations of the Hong Kong government, but the actual operator is Asia Satellite TV.

Li Zekai did not understand it this way. He said: "Dad, if you are talking about squeezing the growth of our family, others have already grown into the first family in Hong Kong.

It's too late for you to say this now. You should have joined forces with the uncles to suppress others, maybe you wouldn't be in this situation today.

Since others have already become members of several major families, it is too late for you to say these things now. Even if there is competition in the future, it will be competition on projects. If you can cooperate, you should naturally cooperate.

The price Liu Zhicheng offered is very high and ideal. We can make a lot of money, so why not do it!
Moreover, we have been under a lot of pressure from the outside world because of the broadcast of European and American programs.”

Li Chaoren didn't want to teach his son bad things, so although he did compete with Liu Zhicheng, he would not say it out loud.

"I'm talking about competition, not suppression. We are all Chinese, so what's the point of talking about suppression?"

On second thought, my son is so opinionated. If I refute him, then all my efforts to train him through the Oriental Satellite TV business would be wasted.

So, Li Chaoren said: "In this case, I won't interfere with you, just think it over carefully!"

"Got it!" Li Zekai said decisively.

He doesn't have a good relationship with his father, and he asked for permission because he is not yet qualified to make the final decision.

Looking at his sons' backs, Li Chaoren shook his head. His two sons had very different personalities, and the younger son simply didn't listen to his orders.

But he still wanted to keep his youngest son in the Cheung Kong Group, so he planned to give the position of vice chairman of Hutchison Whampoa to him.

As for Dragon TV, although Li Chaoren did not want to reach a deal with Liu Zhicheng, he did not want to have a conflict with his son because he knew his son's character.

Besides, Asia Satellite TV does have a great influence on Dragon TV. In the long run, he is also worried that Dragon TV will depreciate, so it is still cost-effective to sell it at a high price.

Moreover, it can retain 35% of Dragon TV’s shares and receive long-term dividends in the future.

(End of this chapter)