The birth of the Hong Kong Island family

In Hutchison Whampoa's conference room, Lin Zhichao and a group of senior executives were having a meeting.

The content of the meeting mainly focused on the five main industries of energy, telecommunications, retail, ports, and real estate. All five main industries have extended to North America, Europe, and Asia. Hutchison Whampoa is already a global enterprise.

If we add the "Hong Kong Electric Light Company", there are actually six main businesses:

Energy: Hutchison Whampoa holds 88% of Husky's shares (Canadian Imperial Bank holds 5% and Lin Ruihuan holds 7%). Currently, Husky's asset value has at least doubled compared to when it was acquired in 1986. Three times; during this period, the acquisition of an oil company doubled, and it also acquired a large amount of Canadian oil and gas resources, as well as a large amount of natural gas resources in the United States, with an asset value of at least more than 6 billion Canadian dollars (approximately more than 6 billion U.S. dollars).

Terminal: Kwai Chung Terminal is the container terminal with the largest throughput in the world. In 1985, the Hong Kong International Container Terminal under Hutchison Whampoa handled more than 45% of the containers in Kwai Chung. After that, Hutchison Whampoa invested nearly 10 billion Hong Kong dollars. By the end of 1990, the company had 10 berths, 89 hectares of terminal facilities (accounting for 63% of the total facilities), and container throughput accounted for 70% of the market. Hutchison Whampoa International Container Terminal Company is a monopoly company in the same industry. In addition, the company also owns Asia's largest cargo distribution center with a floor area of ​​6 million square feet; and it owns the UK's largest container terminal, Felixstowe Port. The container terminal business is Hutchison Whampoa's main source of profit, with profits reaching HK$1.2 billion in 1990.

Retail: Retail business is the traditional business of the old Hutchison Company. Hutchison Whampoa owns two major retail systems - Parknshop supermarkets and Watsons chain stores, as well as Watsons manufacturing and various consumer institutions. As of December 1990, there were 170 PARKnSHOP supermarkets, with more than 40 overseas; Watsons had more than 400 chain stores, including more than 150 in Hong Kong, and the rest overseas and in the mainland. By the early 1990s, Hutchison Whampoa's retail sales reached more than HK$9 billion.

Telecommunications: At the end of 1986, Hutchison Whampoa established a wholly-owned subsidiary, Hutchison Communications Co., Ltd., which governed the original four companies: Hutchison Telephone, Hutchison Telephone, Hutchison Telecommunications, and Hutchison Information Communications. Hutchison Telephone Company is mainly engaged in mobile wireless phones (mobile phones), with a customer ownership rate of 65% in Hong Kong; Hutchison Communications Company has acquired 30 paging companies and is the largest paging agency in Hong Kong, with a market share of 60%; Hutchison Direct TV Co., Ltd. owns the rights and interests of Asia Satellite 1 and 20% of Asia Satellite TV; Hutchison Information Communication mainly develops computer network information services. The business is in its infancy, but it has broad prospects. In addition, Hutchison Whampoa's telecommunications business has made great progress in the UK, has a large share of paging users, has successfully entered the first generation of mobile wireless phones, and obtained the CT2 (second generation mobile wireless phone) license; Hutchison Whampoa has opened up local telecommunications opportunities in Australia, Thailand, Indonesia, Malaysia, the Philippines and other regions, either as a sole proprietorship or as a joint venture.

Hong Kong Electric: In 1983, the Hong Kong Electric Group, controlled by Jardine Matheson Land, owned 9 wholly-owned companies including Hong Kong Electric Company, Fortress and Jiayun, and 5 associated companies including International City. Its business included electricity, real estate, Engineering, industry, trade, retail, insurance, etc. The profit after tax for the year was HK$722 million. In 1985, two years after Hutchison Cheung Kong acquired Hong Kong Electric, its annual profit was HK$1.28 billion, an increase of more than 60%. It was the first time in the history of the Hong Kong Electric Group that the annual profit exceeded the HK$1 billion mark. In 1986, it exceeded HK$1.5 billion, and in 1990, it exceeded HK$3 billion. Currently, Hutchison Whampoa’s stake in Hong Kong Electric has increased to 43.8%.

Ma Shimin said in the conference room: "Hutchison Telecommunications (UK) has completed the acquisition of all shares of British Aerospace's personal communications business. After completing the acquisition, British Yuhan holds 25% of the equity of Hutchison Telecommunications (UK). After completing the acquisition Hutchison Telecommunications (UK) will focus on developing the UK’s second-generation mobile phone CT2 and personal communications network PCN.”

By exchanging shares, more expenses are avoided, and at the same time, cooperation with local British companies is strengthened. In addition to CT2 and PCN businesses, Hutchison Telecom (UK)'s businesses include: Hutchison mobile phones, Hutchison paging, Hutchison mobile data, Hutchison trunk mobile phones, etc. There are too many new technologies in this industry.

Lin Zhichao said: "CT2 technology has not been verified by the market and is full of unknowns. Pay attention to the amount of investment. In comparison, I am more optimistic about digital cellular communication network services. You will study it later. If it is feasible, Hutchison Telecom Get in as soon as possible.”

Everyone became suspicious, and Ma Shimin even said: "Sir Lin, this digital cellular network service is not currently the mainstream in Europe. CT2 is the mainstream in Europe, and"

Lin Zhichao said: "Because of this, if Hutchison Telecom enters digital cellular network services as soon as possible, then we can better open up the market. Later, give me a plan!"

Ma Shimin could only say: "Okay!"

Lin Zhichao still has absolute say in the general direction of the company. Delegating power does not mean he has less power. To put it bluntly, he can let anyone who disobeys go immediately without causing turmoil in Hutchison Whampoa's company.

Of course, the current cooperation between Lin Zhichao and Ma Shimin is very pleasant, and Ma Shimin is a very good right-hand man.

Among all Lin Zhichao's 'generals', he is also one of the best.

“What is the investment budget for CT2 in the UK?”

"800 million to 1 billion Hong Kong dollars is just an investment divided into several years."

"We need to tighten it up a bit, extend the investment period at the same time, and try to reduce expenses as much as possible!"

"OK!"

It doesn't work if you don't invest. After all, if you don't invest, other British telecommunications companies will invest, and then you will have no market influence.

To lose money and gourmet food, it is important to find the 'right path'. Once Hutchison Telecom enters the 'cellular communication network' as soon as possible, its market share in the UK will increase.

Hutchison Telecom's development in Australia and Southeast Asia is also progressing steadily. Lin Zhichao rarely directly participated in these matters.

Next, Lin Zhichao's focus is on the retail industry. He hopes to develop Watsons throughout Asia as soon as possible, and then to Europe and the United States. Currently, Watsons has stores in Hong Kong, Macao, Taiwan, Mainland China, RB, South Korea, and Southeast Asia, with more than 60% of its overseas stores.

Rong Zhi came to the Yangtze River Group Center and looked at the towering world-class buildings, and couldn't help but feel envious.

This building represents the status of the Lin Group. Even the HSBC Building and the Bank of China Building are slightly inferior. It is regarded by Americans as a representative work of modern architecture.

At the same time, the three buildings of HSBC Tower, Bank of China Tower and Cheung Kong Group Center have become Hong Kong's landmark buildings and the capital talked about by citizens and tourists.

"I wonder when CITIC (Hong Kong) will have such a headquarters building!" Rong Zhi sighed in a low voice.

As a first-level company directly under the Executive Yuan, CITIC also had to undergo a unified rectification of Chinese-funded institutions in Hong Kong in 1988. As a result, CITIC passed the rectification and passed the inspection, further confirming that CITIC has no special privileges. As for certain people in Hong Kong's public opinion circles and business circles alleging that CITIC enjoys special privileges, that can only represent their views, and Rongzhi disagrees.

Instead, Wing Chi thought he could lead CITIC (Hong Kong) into a local conglomerate.

Of course, he needs the help of a 'big shot'!

Under the guidance of the front desk, Rong Zhi came to the office of the chairman of Yangtze River Industrial Group.

"Uncle Lin" Rong Zhi called kindly.

He has been in Hong Kong for more than ten years, and it is thanks to the help of Uncle Lin, who treats him like a nephew, that Rongzhi's career is possible today.

Today, CITIC (Hong Kong) has completed its "backdoor listing", borrowing from the "New King Fung Development (formerly a real estate company under Sun Hung Kai)" under the Cheung Kong Group, so it has officially changed its name to "CITIC King Fung".

Xinjingfeng Development, after being acquired by Cheung Kong Group, has developed into a high-quality enterprise with a market value of 1 billion in a few years. This company has another advantage as a 'shell', that is, it has a single business, only real estate investment, which is ideal natural shell.

CITIC Hong Kong obtained a controlling stake in the company through a small amount of cash and capital exchange. At this step, without the help of Lin Zhichao, Rongzhi would not even be able to find a ‘shell’, or in other words, he would not have the strength to go public through a shell company.

Lin Zhichao invited Rong Zhi to sit down on the sofa and said, "Why do you come to my place when you have time?"

Of course, he didn't really regard Rong Zhi as his 'nephew'. Although he did marry two daughters of the Tang family, a wealthy family in the south of the Yangtze River, he was not someone who recognized relationships randomly. The reason why he helped Rong Zhi was because of his father's relationship, and also because the country was standing behind him.

When Chinese investors enter Hong Kong, they like to pull the tail of "Superman Lin", hoping to use him to soar into the sky. Lin Zhichao also helped whenever he could. After all, these were all debts of gratitude.

And next year, it’s time for everyone to repay his debt of gratitude!

Rong Zhi said: "Uncle Lin, I heard that you are planning to donate 5% of your personal equity in CITIC Jingfeng to the Lin Zhichao Foundation?"

After CITIC Jingfeng went through a series of reorganizations, the equity situation is as follows: CITIC holds 49%, Changshi holds 5%, Lin Zhichao holds 5%, and the rest are public shares.

Lin Zhichao said: "Well, we are preparing to formally notify you!"

Rong Zhi said flatteringly: "Uncle Lin's charity work is worth learning from everyone! I heard that you are also planning to donate to the cause of disabled people in China, which shows your high integrity!"

It's flattery, but it's the truth!

As for donating money to disabled people in China, we are still in the process of contacting him, and Lin Zhichao has also been approached for negotiation. Of course, I am not forcing him to donate money, I am just saying that there is such a thing.

Of course, Lin Zhichao was also very generous. He said on the spot that he wanted to watch the performance of the disabled to understand the situation of this group of people. As for the final donation amount, the Lin Zhichao Foundation needs to discuss it.

Lin Zhichao smiled and said, "You came here today for something, right?"

Rong Zhi blushed. In the eyes of outsiders, he often played golf with Lin Zhichao and others and considered them to be 'equal'; but in fact, in all aspects, Lin Zhichao was his elder.

"Yes, I want to acquire Hengchang!"

After Lin Zhichao heard this, he fell silent. Rong Zhi suddenly felt nervous. Without Uncle Lin joining, the matter would not have been successful.

Fortunately, after Lin Zhichao thought for a while, he said: "To acquire Hengchang Company, you must invite Zheng Yutong! Others can also be invited, the more the merrier."

Rong Zhi immediately said: "Will Zheng Yutong switch sides with us?"

Lin Zhichao smiled and said: "Of course there is no problem. Their acquisition of Bei Yi has failed. Zheng Yutong will definitely join us."

Afterwards, the two briefly chatted about inviting those people to join the team, and finally determined that they included Guo Huonian, the Ho Houqiang brothers, Xi Weijian, and behind them were all pro-China businessmen.

After Rong Zhi left, Lin Zhichao started thinking.

Last year, He Shanheng’s consort Lin Xiufeng learned that Hengchang was interested in selling the company. Later, Lin Xiufeng formed a joint venture with Zheng Yutong and Xu Zhantang to acquire Hengchang. As a result, the three of them got carried away and thought that since they were He Shanheng's concubines and He Shanheng's friends for many years, things would definitely fall into place, so it was reported that the three of them planned to divide Hengchang Company into pieces. Now, He Shanheng and others What people care about most is the integrity of the company and the belonging of the old employees.

As you can imagine, the result was that the three of them were completely defeated!

In 1946, He Shanheng, Liang Qiuju, He Tian, ​​Lin Bingyan and others established Dachang Trading House, which was the predecessor of Hengchang Enterprise. Dah Chong Hong mainly distributes rice and peanut oil. After decades of development, Dah Chong Hong has become a large comprehensive trading company in Hong Kong. Hengchang Enterprise is the holding company of Dachang. Neither Hengchang nor Dachang is listed, but their scale and profitability are by no means inferior to those of blue-chip companies.

In addition to the traditional grain and oil trade, Dachang also acts as an agent for Shiseido cosmetics; it acts as an agent for home appliances and audio products of several brands including Golden Throat, Sapphire, Jinzhang, Fuji, and TEAC First Audio; it also distributes ceramic tiles, marble, cement, hardware, sanitary ware, kitchenware, etc. Cabinets and other building materials; agent for famous brand cars such as Honda, Nissan, Dabaoli, Isuzu, etc.; own Taiping Advertising, Shiya Tailor, Dachang Warehouse, Dachang Truck Fleet, Dachang Automobile Service (Repair) Center, Lishi Automotive Engineering, etc. Subsidiary company. Dah Chong Trading is the most eye-catching company in the automobile trade. It owns 7 automobile shops and accounts for about 40% of Hong Kong's automobile sales. Dah Chong also owns a number of properties, including the Heng Chong Building located on Queen's Road in Central, which is worth more than 1 billion.

In 1990, Dah Chong Hong's turnover reached HK$10.01 billion and net profit was HK$1.022 billion. Comparing the profits of the 33 Hang Seng Index constituent stocks (blue chip stocks) in the same year, Dachang ranked 19th, second only to New World Development (1.088 billion Hong Kong dollars) which ranked 18th.

If Dachang or Hengchang were listed, their market capitalization and profits would be among the top 20 listed companies, making them blue-chip stocks.

Although Hengchang is not listed, it has hundreds of shareholders, mainly old employees. Among them, He Shanheng and He Tian account for about 25% of the shares, so it is very difficult to force a acquisition.

Of course, both He Shanheng and He Tian intend to place orders, which is the key point.

Lin Zhichao's decision to participate in this acquisition was not actually to make a profit, but more to help Rongzhi. Of course, he also knew that this acquisition could be profitable, so he decided to let the "Lin Zhichao Foundation" operate it.

He is not short of money now, so he pays more attention to charity. (End of chapter)