Hong Kong Island's New Rich Era
Chapter 37 Huangpu Group
Chapter 37 Huangpu Group
Such a super merger and acquisition of Hutchison International only brought superficial prosperity to Hutchison International because Qi Dezun failed to digest it in time.
Most of the money he used for mergers and acquisitions came from bank loans. As a result, when the stock market crashed, Hutchison International suffered the biggest debt crisis in its history.
So far, Hutchison International's stock has fallen to HK$1.78 per share, and the overall market value is only HK$5.11 million. For many people, this is already within reach.
Hutchison Group is a listed company with public financial information. Its foreign debt was beyond the imagination of many people at the time, so they could only stay away from it and dare not have any improper thoughts.
If Qi Dezun could take his time and acquire and digest each company, the current situation would not have happened. In fact, a few years later, there was another person in Hong Kong: Chen Qingsong, who was also exposed in a stock market crash.
These lessons are worth Liu Zhicheng remembering forever.
Before Hao Qingwen began to introduce Hutchison International, Liu Zhicheng spoke first: "I have studied this company. We may not be strong enough to acquire it."
In his previous life, at the end of September this year, Qi Dezun was forced into a desperate situation by creditors and was forced to agree to HSBC's share expansion and capital increase plan. HSBC used HK$1.5 million to hold 33.65% of Hutchison International's shares and became the actual controller.
Liu Zhicheng could certainly come up with this amount of money at present, but he was not sure that he could suppress those creditors. Therefore, having money but no strength was useless.
Even if he seeks support from the six banks in Hong Kong and Macau now, no one will offend HSBC for him at this time.
Hao Qingwen told Liu Zhicheng his plan: "Mr. Liu, I am not suggesting that you acquire Hutchison International as a whole, but rather use a split method to acquire one of its companies, the Whampoa Group."
"Hutchison's more than 300 subsidiaries are all heavily in debt. Only the assets of the Whampoa Group are the most valuable and have the most potential, and are most suitable for the future development of Orange Technology."
Liu Zhicheng couldn't help but be moved by Hao Qingwen's suggestion.
Hao Qingwen and his team conducted a detailed investigation of Hutchison International and listed all of its important controlled subsidiaries.
The first is Watsons, an international chain store that mainly sells health products and food and was also very famous in its previous life.
Second, Hebao Company, which mainly engages in the import and export trade of auto parts and building materials, has close ties with the Japanese auto industry chain. It has cooperated to establish a number of parts factories and has also invested in quarries in Hong Kong.
The second is the Whampoa Group, a shipbuilding and repair company, as well as a terminal investment and management company.
Others include Metropolitan Properties, a joint venture between Hutchison Whampoa and Hong Kong Dachang Real Estate, which is responsible for real estate development, the large warehouse group Junyi Warehouse, and important listed companies under Anderson and Harbour Engineering.
These companies are all leading enterprises in a certain industry in Hong Kong, and their market value accounts for more than 10% of the Hong Kong stock index.
Liu Zhicheng comes from the future. He is very clear about the future development potential of Huangpu Group. If there is a chance to take it, how could he let it go.
Since Hao Qingwen proposed this plan, there must be a chance. Liu Zhicheng's heart beat faster and his blood boiled.
Liu Zhicheng knew that Hutchison would soon change hands and become an asset of HSBC.
In order to ensure the security of its own claims, HSBC has been studying the assets and finances of major companies for many years. They understand that Hutchison's assets are of extremely high quality and that if they are reorganized, Hutchison will be able to revive and make considerable profits.
Later, they invited the company doctor Wylie to start a series of reorganizations of Hutchison, merging Hutchison International and Whampoa Group to form the famous "Hutchison Whampoa".
In two years, Hutchison sold more than half of its 300 subsidiaries, successfully shaking off the debt crisis and turning losses into profits. From the perspective of most investors, Hutchison International was already heavily in debt and on the verge of bankruptcy, and no one could see the future value and potential of these companies.
Liu Zhicheng praised Hao Qingwen's vision and suggested that he concentrate funds to acquire Huangpu Group, which was an extremely wise decision.
As long as he could take over the Whampoa Group, Liu Zhicheng would be able to establish his status in Hong Kong and become a prominent figure among Chinese businessmen.
The key issue now is how to make Hutchison Chairman Qi Dezun willing to sell Whampoa Group alone to Liu Zhicheng?
Hao Qingwen described the situations of several listed companies, and especially when he talked about Hebao Company, Liu Zhicheng's eyes lit up.
Hao Qingwen focused on the introduction of the Whampoa Group: "In the early years, the Whampoa Group, Jardine Matheson and Swire jointly controlled the three major ports in Hong Kong. The three ports were almost the same size. The Whampoa port area was as high as 200 million feet, or about 20 square meters."
"He also built a shipyard and accumulated a large amount of land in Hong Kong, all in prime locations."
After entering the 1960s, Hong Kong's economy took off, labor costs rose, and the shipbuilding industry became unprofitable. Qi Dezun saw that the real estate business was lucrative, so the Whampoa Group began to transform and provide land for real estate developers. This led to the establishment of Ducheng Real Estate, a joint venture between Hutchison and Dachang Real Estate.
The Whampoa Group owns three shipyards and docks in Hung Hom, Tai Kok Tsui and Heung Kong Tsai, covering a very large area of land, all of which is seaside and of extraordinary value. If all of it can be developed, it will become a leading real estate development company in Hong Kong.
However, these plots of land are for industrial use. If the shipyard is demolished and converted into commercial property, additional land fees must be paid to the Hong Kong government. However, the real estate market is currently in a low point, and there is no profit in building houses on the dock land.
Without profits, no investors will come to invest, thus forming a vicious cycle.
Hao Qingwen said confidently: "Mr. Liu, just because there is no profit now does not mean there will be no profit in the future. Hong Kong has a very realistic problem, which is that there are too many people and too little land."
In terms of housing in Hong Kong, the polarization is particularly serious, and a large number of people do not even have an independent space of 5 square meters.
As housing prices in Hong Kong are extremely high, developers have developed a large number of small apartments, generally ranging from 500 to 700 square feet, in order to ensure that the general public can afford them.
Don’t think it’s big just because it’s hundreds of feet long. You’d be wrong. In fact, a 500-square-foot house is only about 40 square meters.
Most families in Hong Kong have seven or eight people, squeezed into a house of thirty or forty square meters. Can you imagine it?
This is still good, being able to own a house is already a wealthy person in Hong Kong. In fact, most ordinary people in Hong Kong can only afford to rent a pigeon house or a coffin house of a few square meters.
According to statistics, about 20% of the population in Hong Kong live in conditions worse than prisons in some developed Western countries. For example, before I traveled through time in my previous life, few people in Hong Kong lived in rented houses.
You may not believe it, but Hong Kong does not lack land. There are vast countrysides that can be developed. However, every time the government wants to propose development, environmentalists come out to protest.
What's even funnier is that a group of people with negative assets will come out to protest. You said that you are a negative asset person because of a mortgage, which is understandable, but a group of people with negative assets who don't own a house also come out to make trouble. I really don't know what they are trying to do?
Dear readers, today is a critical moment. The author must shamelessly ask for follow-up reading, follow-up reading, and follow-up reading! Currently, the trial promotion is in progress. The follow-up data of the next chapter will determine whether it can be promoted to the second round of recommendations. Please follow up reading, follow up reading, and follow up reading! I have nothing to repay you, but thank you!
(End of this chapter)
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