Hong Kong Island's New Rich Era
Chapter 56 Daya Mining Department
Chapter 56 Daya Mining Department
On October 28, Liu Zhicheng was concerned about the sales of the Orange arcade game Snake.
At ten o'clock in the morning, Lv Zhihe came to the Juzi Technology Park to visit Liu Zhicheng. He smiled and said to Liu Zhicheng, "Congratulations, Mr. Liu, the arcade machine is selling well."
Although Liu Zhicheng was a little busy, he knew the purpose of Lu Zhihe's visit today, so he took the initiative to walk out from his desk, shook Lu Zhihe's hand, and said with a smile: "Thank you for Lu's good wishes. Please take a seat."
As soon as they sat down, a secretary brought them tea and they chatted about the current housing prices in Hong Kong and the demand for building materials for real estate development.
After chatting for about half an hour, Lv Zhihe took out a document and handed it to Liu Zhicheng: "This is the prospectus drafted by Daya Mining. I will send it for approval in the next few days."
In early October, Liu Zhicheng and Lu Zhihe reached a cooperation intention on the merger of Daya Quarry and Zhigao Quarry and the listing of the company. They also carried out industrial and commercial changes and the name of the new company after the merger was "Daya Mining".
Lu Zhihe is the major shareholder, holding 42.8% of the shares of Daya Mining. Shanfeng Investment is the second largest shareholder, holding 21.2% of the shares. The remaining shares are publicly offered to raise funds.
The teams of both sides had already discussed the details of the listing, and Liu Zhicheng certainly had no objection to the prospectus.
Liu Zhicheng only said to Lu Zhihe: "Mr. Lu, I agree with this prospectus, but I have been busy with company affairs recently. When Daya Mining is listed on the exchange, I can only say that I will try my best to participate."
In fact, Liu Zhicheng doesn't really want to show up and tries to avoid being in the spotlight, and the process of listing a company is a hard job.
After the prospectus is reviewed, a road show will be conducted to promote stocks to investors and entrust securities dealers to sell stocks.
The listing date of Daya Mining will be in November. Therefore, the time is tight and the task is heavy.
Lu Zhihe smiled and said, "It's okay. I know you are busy with official duties. You should take care of your own duties first. I will take care of this matter."
"Mr. Lu, in fact, after Daya Mining went public, it has become the leader in the stone industry. The sales of building materials have increased recently, and the main reason is the booming real estate market."
"I know this, but I'm not familiar with real estate." After hearing what Liu Zhicheng said, Lu Zhihe felt a little depressed and didn't understand what he meant.
Liu Zhicheng smiled and said, "Don't you want to make the building materials industry bigger and stronger?"
"Of course I do." Lu Zhihe answered straightforwardly.
"Then Mr. Lu, there is a good opportunity right now, that is, to control Qingzhou Yingni. This is a good opportunity to strengthen the Daya Building Materials Group. It depends on what you think. "
Qingzhou Cement is a century-old British-owned enterprise, mainly engaged in the production and sale of cement and other building materials. It was established in Macau in the last century. Due to the lack of raw materials such as quartz stone, it moved to Hong Kong after the 1930s.
Those who opened factories in Hong Kong in the early days all had good locations. The factory of Yingni in Ching Chau was located near the sea in Hung Hom, with an area of about 80 square feet, which was almost 40% of the area of the former Whampoa Port. However, the location was relatively worse.
Qingzhou Yingni's equity has changed several times, and its board of directors has never been controlled by any family. The major shareholders do not hold a high proportion of shares. They do not have the power to make the final decision, and they also have no decent resistance.
As for why these companies are not controlled by major shareholders, it is because their value has not yet been realized. For example, the land and building materials of Qingzhou Yingni are all related to real estate, and the future of Hong Kong will be dominated by real estate.
In the past life, Qingzhou Cement would soon be acquired by Li Chaoren, who would use the land to develop two medium-sized communities and make billions of Hong Kong dollars. "At present, the market value of Qingzhou Cement is not very high, less than 100 million Hong Kong dollars. There is no controlling shareholder, and it is not difficult to control it. In this way, Daya Building Materials will be formed, and Daya will have a greater say in the building materials market in Hong Kong in the future." Liu Zhicheng thought for a while and said.
"Mr. Liu, this is a good idea and very attractive, but will it be difficult to block British companies?" Lu Zhihe also nodded and analyzed.
"Mr. Lu, you should be able to see that the Qingzhou Yingni factory area has a large piece of land. This is a good 'thing', but it will be a little troublesome to convert it from industrial to commercial later." Liu Zhicheng said with a smile.
The housing prices in Hong Kong are rising rapidly now, and the prices change every month, so the land prices are also rising. If Qingzhou Yingmu is controlled at a lower price, it is equivalent to reserving profits for Daya Mining.
Lu Zhihe thought about it and said, "Then I need to prepare as soon as possible. Now that it is listed, should I ask the profitable companies to provide guidance, or should I invite the profitable companies to operate it?"
"Just make more profit. Qingzhou Yingni is just a medium-sized company. It doesn't matter if HSBC knows about this. Shen Bi won't care."
Liu Zhicheng actually also wanted Huangpu Group to acquire Qingzhou Yingni, but now that he has become a shareholder of Daya Mining, it would be the same to let Lu Zhihe help him make money, it was just a matter of how much money he could make.
As Hong Kong's quasi-central bank, HSBC occupies a leading position in the financial industry. Its businesses involve foreign exchange exchange, deposit absorption, loan issuance, and making money through its multiple investments.
As an investment institution, its profitable businesses are extensive, involving professional assistance to various companies in acquiring and selling businesses.
"Okay, then I will communicate more with Yingli. It happens that there is still some communication about Daya Mining's listing, so I'll bring it up by the way. Mr. Liu, do you think the acquisition time should be before the listing or after the listing?" Lu Zhihe asked again.
Liu Zhicheng smiled and said, "Of course, after the listing, this is good news. Once the announcement of the successful acquisition of Qingzhou Yingni is made, Daya's stock price will rise rapidly."
"Okay, I know what to do. I'll call you when I have news."
Lui Chi-ho was also a man of great resolution and action. That afternoon, he made an appointment with the profitable vice president, Deng Guangbing, in a cafe on Hong Kong Island.
"Mr. Deng, there should be no problem with Daya Mining's listing this time, right?" Lu Zhihe said with a faint smile.
"Mr. Lu, you can rest assured. The reputation of a company with high profits is trustworthy. We guarantee that we can ring the gong on time."
Listing on Wall Street involves ringing the bell, while listing in Hong Kong involves ringing the gong. In fact, it is just for the sake of excitement and to give the media something to hype.
"We invited Mr. Deng here today because we actually have another matter, which is to ask Yingliduo to acquire a company for our Daya Mining." Lu Zhihe said slowly.
"Mr. Lu, this is what we've been waiting for. Isn't this another business for us? Can you tell me which company you're planning to acquire?" Deng Guangbing asked with a smile.
"Qingzhou Yingni." Lu Zhihe answered without hesitation.
"Boss Lu, this is a good business. If successful, Daya Mining will become a leading enterprise in Hong Kong's building materials industry."
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(End of this chapter)
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