The birth of the Hong Kong Island family

It’s a new year again (1989).

After New Year's Day, Changshi Group held a high-level meeting.

In the conference room, everyone gave a work report.

At the same time, the situation last year was particularly good, with Cheung Kong Group's profit reaching 3.156 billion Hong Kong dollars. In addition to ranking first in Hong Kong in residential sales, there is also a sharp increase in rents.

After everyone reported their work, Lin Zhichao asked: "How many units is this year's sales target?"

Li Minghui immediately replied: "It is estimated that 4,000 to 4,300 residential units will be sold, with approximately 2.3 million square feet of floor space, which is a decrease from last year."

Cheung Kong Group's housing profits are the highest among all real estate companies. This is not because the materials used are poor, but on the contrary, the quality is very good. The real reason is that the land prices of Cheung Kong Group are very cheap.

Lin Zhichao thought for a moment and said, "Try to arrange sales in the first half of the year!"

He didn't say the reason, but many senior executives were thinking about it because the boss was good at catching "cycles." Now that real estate has been rising for five years from 1984 to 1989, does the boss think that real estate will fall?

Lin Ruihuan said: "The group's current cash flow is very sufficient. Just this month, a piece of land in Wan Chai is going to be auctioned (the former Central Plaza land). If the price is reasonable, it can be used to develop commercial buildings."

The cash flow of Cheung Kong Group has reached more than 4 billion Hong Kong dollars. Next, Japan will prepare to sell assets, and a large amount of cash flow will be withdrawn.

Lin Zhichao said: "That piece of land is almost worth it. I want to take part in it. The price is reasonable. The Cheung Kong Industrial Group's smelting plant in Tseung Kwan O is interested in selling it and will hand it over later. That piece of land is enough to develop a large housing estate. The price is expected It will cost about HK$8 billion, which can be used as the fifth large-scale housing estate in the Cheung Kong system in the 1990s."

Louli came rolling in, and everyone was smiling.

As for the Land King of Wan Chai, he really has no temptation for Lin Zhichao.

Lin Ruihuan replied: "Okay, I will arrange it as soon as possible!"

It's not that Lin Zhichao is only focused on developing real estate, but that the Hong Kong government is currently planning a new town in that area, and the smelter is incompatible with the plan. In fact, Zhongtian Steel has gradually moved to the New Territories, and its scale is much smaller.

In the previous life, the land was sold to Sun Hung Kai and Swire Properties by the steel kings, who built two large housing estates respectively. Now handed over to Cheung Kong Group to develop, it will be another large-scale housing estate with more than 10,000 residential units, and of course there will be commercial parts.

After the meeting.

Lin Ruihuan came to the chairman's office and asked: "Dad, a transaction agreement has been reached on a building in Japan. If you get the money, should you convert it directly into US dollars and take it back to Hong Kong, or temporarily deposit it in a yen account in a Japanese bank? ?”

It was quite fast, and the first commercial building was sold in less than half a month.

Of course, this year (1989) is the last crazy year for Japanese real estate and stock markets, so there is no need to worry about buyers (takeovers).

Lin Zhichao said: "Currently, the US dollar/yen has reached 125, so convert it into US dollars as much as possible and take it back to Hong Kong immediately. This year, as long as it is less than 150, you can directly convert it into US dollars and take it back to Hong Kong."

"Okay, the value of Japanese properties is higher than expected, and the net asset value is expected to reach more than 12 billion US dollars."

"Well, don't worry too much, we have already made a lot!"

"Okay. Does dad have any investment direction for these funds?"

Lin Zhichao said: "Do you have any direction?"

Lin Ruihuan thought about it and said seriously: "No at the moment. My opinion is to be more generous with the dividend at the end of the year and use 1 billion Hong Kong dollars as dividend."

Lin Zhichao smiled and said: "One billion is not too much, it is doable!"

Even if it’s too much, it’s not too much. It’s not too much, because it almost reaches 30% of the annual profit; it’s not too much, because there will be a lot of cash flow from Japan to Hong Kong this year, so there is nothing wrong with paying more in advance.

According to Lin Zhichao’s 62% stake, he received more than 600 million in dividends at once. Lin Zhichao did not want this kind of dividends and gave them directly to his son.

As for what they were doing, Lin Zhichao never asked, but he did know a little bit about it. Many of them were used to invest in overseas projects.

Including unlisted groups, Lin Zhichao makes decisions every year on how much money he earns in a year and how much money he allocates to himself. But generally speaking, most cash flow is deposited in company accounts.

After all, there are still 25 years of the best time to make money, so it is better to invest the money.

Lin Ruihuan and Lin Ruijiang were sitting on the sofa in the office, and the two brothers were drinking coffee together.

"Second brother, Cheung Kong Industries' land in Tseung Kwan O is worth 8 billion Hong Kong dollars, and the land in Tsuen Wan is also very expensive part-time!" Lin Ruihuan said with a joke.

Without his father's nod, how could he dare to buy the 'treasure land' of Yangtze River Industries? They are also brothers, so he made a joke like this.

However, Lin Ruijiang believed it to be true and immediately put down the coffee and said: "Brother, what are you thinking? Do you really want all the land in Hong Kong to be developed into residential and office buildings? Only real estate developers like you are willing to do so? The factories are all moving to the mainland. People don’t invest in the technology industry, which is detrimental to Hong Kong’s future!”

Lin Ruihuan said quickly: "I'm kidding you! You are one of our brothers. What I admire the most is what you do. How could I not support you!"

In his eyes, what his younger brother is doing is a great cause, and he really admires it.

Lin Ruijiang said: "I'm sorry, brother, I overreacted!"

Lin Ruihuan said: "We brothers, why do we need to be so polite? You must be under great pressure, and I have nothing to help you, but I feel that my father did not ask you to be in a hurry when he asked you to develop the technology industry, and the technology industry is also in a hurry. No."

Lin Ruijiang nodded and said: "I understand! In fact, the pressure is not too great, but there are many things to do. In recent years, zippers, toys, electrical appliances, and electronics have all gone to the mainland for development."

The two brothers have a good relationship, and Lin Ruijiang rarely talks about work matters.

In the past few years, Yangtze Zipper and Yangtze Toys have set up factories in the mainland on a large scale, transferring nearly half of their production capacity to the mainland; in the future, they will continue to transfer production capacity.

In terms of electrical appliances, Midea Electric Appliances is currently a joint venture with mainland China and mainly produces televisions, picture tubes, video recorders, radios, walkmans, refrigerators, etc.

In terms of electronics, Midea Electronics is a wholly-owned subsidiary in Shenzhen and has invested in a headquarters covering an area of ​​dozens of acres. It plans to rely on the resources and markets of the mainland to deeply develop the electronics industry.

Game software has become an important asset of Yangtze River Industrial Group, with annual profits exceeding 500 million.

The entire Yangtze River Industrial Group has an annual profit of about 2 billion, but in terms of management difficulty and development direction, it is definitely very complicated.

So Lin Ruijiang's work is of course very busy!

The brothers were not talking about business, but about relationships, but in the end they reached an HK$8 billion land acquisition, which was actually just going through the motions.

There is no problem that the Yangtze River Industrial land is worth 8 billion.

Land exchange rights documents in the New Territories are already HK$1,100 to HK$1,200 per square foot. (End of chapter)