Reborn as a Hong Kong Tycoon

Chapter 543 Inventory, use of funds (two in one)

On the next Tuesday, Lin Baicheng came to Hutchison Whampoa.

Today Hutchison Whampoa will hold a board meeting to discuss the use of funds for Hutchison Whampoa's nearly US$10 billion profit.

Lin Baicheng is the largest shareholder of the company, yes, the company is also under his control, but in addition to the principal amounting to a total of more than one billion US dollars, he must discuss with other directors, and at least formally notify them Just one word, you can't decide the use of funds by yourself without saying hello.

If Lin Baicheng really wants to do that, it's not impossible, but it's ignoring other directors and shareholders, and face is given to each other.If he doesn't give others face, he can't blame others for not giving him face in the future.

The board meeting was held at ten o'clock, and Lin Baicheng, who stayed in the office, was calculating the profits that belonged to him this time.

This time, Hutchison Whampoa, Bailong Commercial Club, Yum Fund, and Lin Baicheng sold multiple gold futures orders with their own funds. Lin Baicheng has learned that the international gold price has fallen below the price of 400 US dollars per ounce this morning. Lin Baicheng has told Vivien Kelly and the others not to sell anymore, even if the gold price rebounds later, don't sell it.

First of all, at Hutchison Whampoa, Lin Baicheng's profit is 10% profit commission, which is 1.093 million US dollars. Lin Baicheng gave Golden Fleece Company up to and down 100 million US dollars as a bonus.

Then there is the Bailong Commercial Club, with a profit of more than 2.04 million U.S. dollars. After the dividend, Lin Baicheng got million U.S. dollars.

Then there is the Yum Fund, which has a total of 6.57 million Hong Kong dollars, which is a little over 1.56 million dollars converted into US dollars.

Gold futures sold with self-owned funds. During this period, I just sold more than 1 times the principal of 241.7 million US dollars. The cost price was 409.75 US dollars per ounce, and the average selling price was 69.53 US dollars per ounce. The increase was as high as about 6.953%, with a profit of million US dollars.

The annual interest of this leveraged financing is 9%, but the time is only 5 months, the total interest is 3750 million US dollars, and the profit after deducting the leverage interest is 6.578 million US dollars.

In terms of tax payment, the accounts of these funds are also offshore companies with special tax avoidance means, and only need to pay 2650 million US dollars in taxes.

In this way, the final profit was a profit of US$6.313, plus the principal amounted to US$7.313 million, which were deposited in more than a dozen accounts in multiple companies.

1.092 million US dollars plus 2.04 million US dollars plus 1.56 million US dollars, plus 7.313 million US dollars, a total of 12.005 billion US dollars of funds, these are all the funds that Lin Baicheng can use after this harvest.

Among these funds, Lin Baicheng has returned 2.517 million U.S. dollars to Mitsubishi Bank, so the remaining available funds are more than 9.5 million U.S. dollars.

Among the remaining funds, Lin Baicheng planned to repay the $77 million loan from Goldman Sachs, and take back the shares of Xinghe Game Company mortgaged to Goldman Sachs.This loan was handled by Lin Baicheng in November 11. For nearly two years, Lin Baicheng paid nearly 9 million US dollars at an annual interest rate of 1700%.

Now that Lin Baicheng is not short of funds for the time being, of course he chose to repay the loan to avoid paying interest every day.When the money is really short, you can take the shares of Xinghe Game Company to the bank for a loan. With the current market value of the company, you can get more funds with less mortgage.

Repaying the bank loans of Goldman Sachs and Mitsubishi, excluding corporate loans, Lin Baicheng himself still owes HSBC 15 billion Hong Kong dollars, which is equivalent to a loan of a little more than 3.5 million U.S. dollars.

However, Lin Baicheng is currently not planning to repay the 15 billion Hong Kong dollar loan from HSBC, but continues to owe it. Lin Baicheng already has a general direction for using the remaining 8.5 million US dollars.

First of all, in terms of investment, the reason why Lin Baicheng closed the long position of 10 billion US dollars knowing that the international gold price will rise sharply in the future is because he is planning to use part of the funds to do long oil futures and shift the battlefield.

This time, Lin Baicheng plans to use 2 million US dollars to do long oil futures, also using ten times the leverage, but these funds will not be handed over to the people of Golden Fleece Company to operate. Lin Baicheng plans to let Yuan Tianfan lead the team to operate this fund.

As a result, only US$6.5 million is left for Lin Baicheng to use, and the school he plans to build will cost a huge sum of money. The purchase of land and the construction of the school will cost at least US$ million or US$ million in the early stage. The purchase of equipment, the recruitment of excellent teachers and professors, etc. will also cost money, but that is a later matter.

For the time being, the school only counts the expenditure of 1.5 million U.S. dollars, so only 5 million U.S. dollars are left.

Lin Baicheng, who knows the future development, is very aware of the promising future of the mobile phone industry. Although the mobile phone has been developed, it has not yet been commercialized. Although Lin Baicheng enters the market now, he may not be able to catch up with Motorola. It is close to Motorola, and at the same time, it can hold some key patents in its hands.

Therefore, Lin Baicheng plans to invest US$5 million of the US$4 million in the mobile phone industry.Whether it is acquiring a company with relevant technology patents or recruiting industry leaders for research and development, the required funds will definitely not be small, and the investment of 4 million US dollars is definitely not too much.

However, the 4 million US dollars in this era is not the 4 million US dollars in decades later, and the purchasing power is still very strong. What's more, the investment of 4 million US dollars is only an initial investment. If necessary, Lin Baicheng will definitely continue to invest in the future .

Now, Lin Baicheng only plans to enter the mobile phone industry, but has not yet made any action. He needs to find a big player in the industry. If he leads it by himself, he does not know when it will take for the company to develop a mobile phone.

It is better to leave it to professionals to do professional things.

Lin Baicheng already has a direction to use the remaining US$1 million, and he also attaches great importance to the investment there.

When ten o'clock was approaching, the secretary Chen Huixiang came to inform Lin Baicheng to go to the meeting.

In the conference room, all directors are seated individually.

"The topic of today's meeting is to discuss the use of a total of 11.83 billion US dollars in funds."

"Let me first talk about my thoughts. The company has made a huge profit of 9.83 million US dollars through investment this time, so it is necessary to continue investing. I decided to use 2 million US dollars to entrust a third-party institution to invest. Maybe there will be a high rate of return at that time.”

Lin Baicheng, who presided over the meeting, was the first to say that the board of directors said they were discussing with each other, but they were actually expressing their opinions on his decision, not discussing how to use the funds together.

After hearing this, Guo Henian said: "Lin Sheng, He Huang has a total of nearly 12 billion US dollars of funds available for use. I agree with the decision to continue investing, but is the investment of 2 million US dollars too small? The company has sufficient funds and is fully funded. The amount of capital that can be invested can be increased.”

With a principal of 2 million U.S. dollars, he earned nearly 5 times the profit, and the more principal he earned, the more he would earn. Guo Henian naturally wanted to invest more principal, so that the money he could earn would be even greater. many.

"The company has obtained high returns on investment many times, so it can increase investment and increase the principal, and the principal of 3 million 4 million US dollars is fine."

As an honorary director, Li Cha said very fairly that he would say what to do to benefit the company's development.

Lin Baicheng looked at the others after hearing the words: "What do you say?"

"As long as the principal invested does not exceed US$5 million, then there is no problem." "The investment of US$2 million is not a small amount, but it is not too much compared to the funds that the company can use, and more investment is also acceptable." " I’m in favor of putting more capital.”.
Other directors expressed their opinions one after another, and they all agreed to spend more funds as investment. It is obvious that the profits from previous investments made everyone feel that there is a lot to do.

"Since everyone thinks so, let's discuss how much money to invest."

Seeing that everyone had the same opinion, Lin Baicheng did not refute it.

Afterwards, the directors discussed, and this time, everyone's opinions should be integrated, rather than someone's opinion.

A few minutes later, the specific amount was decided, and Hutchison Whampoa took out 4 million U.S. dollars as investment.

Lin Baicheng continued: "The remaining 7.83 million US dollars must be invested in the company's industrial development, such as the three major industries of real estate, retail and medicine, which are the main directions of investment."

Richard said: "Mr. Lin, the company's expansion in Xiangjiang has slowly reached its limit. The market is only so big. If you want to expand again, you have to wait for Xiangjiang's economy to get better, or expand overseas."

Wei Li then said: "The real estate is not bad. The company has a lot of land, so we can continue to develop it."

Li Cha: "The land area of ​​Xiangjiang is limited. For the long-term development of the company, the company should not develop land too quickly. What's more, the real estate developed by the company is rarely sold, so the speed of returning funds is too slow, which will affect the development of the company."

"In terms of real estate, I want Hutchison Whampoa to expand to Japan and cooperate with local companies in the country to develop real estate together. What do you think?"

Lin Baicheng provided a direction. Japan's real estate industry will have great potential after 85. He wants Hutchison Whampoa to develop in advance, and then make a fortune in the real estate bubble.This can be said to be a one-time transaction. After the real estate bubble ends, Hutchison Whampoa will no longer need to develop the real estate industry in Japan. The main development direction in the future will be Hong Kong and the mainland.

"Why would Lin Sheng want to expand to Japan? Although Japan's real estate industry has recovered in the past few years, it does not see much potential for development. Instead of investing in Japan, it is better to go to the United States. After all, the United States is the world's largest economy. most developed country."

Guo Henian has a different opinion. In his opinion, since it is expanding to overseas countries, choosing Japan is better than choosing the United States. The development potential of the American real estate industry is greater than that of Japan. After all, Americans are richer.

"The reason for choosing Japan instead of the United States is very simple. Japan has less land and more people, while the United States has less people. As far as the real estate industry is concerned, Japan's potential will only be greater than that of the United States."

Lin Baicheng explained aloud, then paused and said: "Just like our Xiangjiang, the fundamental reason why I am optimistic about the real estate industry in Xiangjiang is that we have more people and less land in Xiangjiang. With the development of the economy, everyone is getting richer and richer. I want to live in a better place, so the house price will be higher and higher.”

"That's true."

Guo Henian nodded slightly, feeling that Lin Baicheng's words made sense.

But Li Cha said: "Mr. Lin, what you said is correct, but I still don't agree with expanding to Japan. After all, we are a foreign company, and we need to pay a price if we want to develop in Japan, and Japan's real estate industry It’s not necessarily better than the local ones in Xiangjiang, instead of expanding to Japan, it’s better to vigorously develop the local real estate industry.”

Cheng Yufeng reminded: "Director Li Cha, you just said that the company should not be too fast in real estate development."

Li Cha nodded: "I've said that, that's right, but compared to expanding overseas, I prefer to use the funds for local real estate development."

"Let's all talk about our own opinions."

Lin Baicheng nodded slightly and looked at the other directors.It is still early in 85, and there are still five or six years to go. Therefore, Lin Baicheng does not have to let Hutchison Whampoa's real estate business expand to Japan immediately. If the majority of directors think that the expansion is not suitable, he will choose to follow the good advice and talk about it later.

"The development of the real estate industry cannot be separated from the administrative relationship, so I am not in favor of the industry's development overseas."

"No matter what industry you are in, if you want to grow, you can't stay in a corner. Expansion overseas is a development path, which may bring more revenue and profits to the company. However, overseas expansion should not be too hasty, but slow. Take your time, it’s best not to invest too much at the beginning, so that even if there is a loss, the company can accept it.”

"If it's just a small amount of investment, it's acceptable."

"I also agree to expand outward, but the direction of expansion is not Japan, but Bay Island. The relationship between Bay Island and our Xiangjiang is closer, and the development there will be smoother."

"In addition to Bay Island, countries with potential for development in Southeast Asia are also choices. The more general the economy of a country nowadays, the greater the increase in real estate prices after the country's economy develops, and the more profits the company can earn. more."

"..."

The directors expressed their views.

After the meeting, Lin Baicheng took everyone's opinions into account and decided to expand outwards, but where to expand and how much to invest in, these will be discussed next time, and there is no rush to make a decision.

The expansion of real estate has not yet been decided, and the funds at the company's disposal are nearly million US dollars, so Lin Baicheng and others continued to discuss.

This meeting lasted for more than an hour, and there are still many proposals that have not been decided.

During the meeting, the directors decided to grant Watsons US$1 million to allow Watsons to expand to Europe and the United States.The supermarkets that Watsons is currently operating have brought a lot of profits to Watsons. This is an industry that is constantly improving. Everyone is optimistic about the development prospects of the industry and will naturally increase investment.

A total of 1 million US dollars has been invested in industries such as medicine and Kowloon buses, which is more than enough.

The remaining nearly million U.S. dollars has not yet been decided. After deciding on the direction of real estate investment and the scale of capital investment, the direction of use of the remaining funds will be decided.But one thing is certain, that is, part of the funds will be returned to the bank. Hutchison Whampoa still has high debts. Now that the company is not expanding rapidly, it is necessary to repay part of the loan to reduce debts.

(End of this chapter)