In Hong Kong, we build a global business empire

Chapter 135 This is a golden chicken that lays golden eggs
In Lin Haoran's previous life, Li Jiacheng's acquisition of Hong Kong Electric was a very classic acquisition case. Anyone who has paid attention to Li Jiacheng's development history knows his M&A history.

Compared with Ching Chau Cement, the value of Hong Kong Electric Group is obviously greater, and much greater.

The Hong Kong Electric Company Limited is a British-owned public utility company in Hong Kong. Founded in 1889, the Hong Kong Electric Company Limited has a history of 90 years. During these 90 years, the group has accumulated a large amount of land.

These plots of land are not only distributed throughout Hong Kong Island, but there are also many on the Kowloon Peninsula.

For example, the former site of the Electric Road Power Station in North Point, Lot 8200 in Jardine's Lookout, and even the land in Tsuen Wan.

Many of these plots of land used to be located in the suburbs of Hong Kong, but now with the expansion of the urban area, they have all moved into the city area and their value has already skyrocketed.

Now, if Lin Haoran wants to take over the Hong Kong Electric Group, he has many advantages.

First, the real estate industry of the Hong Kong Electric Group has just started. Although it has developed rapidly, the profits are not high yet, and the stock market value of the Hong Kong Electric Group is not high either.

Secondly, the Hong Kong Electric Group has not yet cooperated with the Cheung Kong Group to develop the old site of the Electric Road Power Station in North Point, and has not yet attracted Li Ka-shing's attention. However, once the cooperation begins, it is obvious that Li Ka-shing will also set his sights on this group.

Thirdly, once they failed in the competition with Wharf Holdings, Hong Kong Land and Jardine Matheson would have sufficient funds, which gave Hong Kong Land the ambition to expand. At that time, Hong Kong Electric Holdings would be targeted by Hong Kong Land, which would first take over Hong Kong Telephone Company and then secretly acquire Hong Kong Electric Holdings. In the end, if it were not for the major expansion that caused Jardine Matheson and Hong Kong Land to suffer heavy losses and be forced to sell their shares in Hong Kong Electric Holdings to Li Ka-shing, the Hong Kong Electric Holdings would actually have been controlled by Hong Kong Land.

Fourthly, HK Electric Group is a high-quality public utility stock with stable income. In another two or three years, the market value of HK Electric Group will reach HK$55 billion. At that time, not only will there be many competitors, but the cost of taking it down will also be very high. However, the current market value of HK Electric Group in the market is only HK$15 billion.

Fifth, as a public listed company, HK Electric Group has never had a major family shareholder, and the acquisition will not be easily blocked.

……

Obviously, it is a very good time to acquire this group at this time.

The Hong Kong Electric Group is definitely a top enterprise in Hong Kong. Its businesses are not limited to electricity sales. It also includes real estate development and management, technical services, retail, advertising, finance and other businesses. It owns companies including Hong Kong Electric Company, Hip Hop Engineering Company, Ka Wan Development Group, Ka Wan Property Company, Fortress Electrical Company, Huize Finance Company, etc. It has already achieved diversified development. It is not just an electricity sales company. Its strength should not be underestimated. It is only inferior to a few giants such as the Huifeng Group, Jardine Land, Hutchison Whampoa, and Swire Group.

Apart from anything else, the two plots of land, the former site of the Electric Road Power Plant in North Point and Lot 8200 at Jardine's Lookout, are currently worth more than billion Hong Kong dollars. By next year, these two plots of land will be able to be sold for more than billion Hong Kong dollars.

The most important thing is that the Hong Kong Electric Group is a company with stable profits. With its electricity sales business, it basically will not suffer losses. Compared with Hutchison Whampoa and Hongkong Land, which are easily affected by the real estate industry and suffer losses, the Hong Kong Electric Group will basically not suffer losses.

Taking over the Hong Kong Electric Group is like taking over a golden chicken that lays golden eggs.

Now, with the funds he has, he definitely cannot take over the Hong Kong Electric Group, and his funds also have other uses.

However, he would first secretly take action against the Hong Kong Electric Group and absorb a portion of it while the stock price is still low. In the future, when he has enough funds, he will forcefully seize the controlling stake.

The current total market value of HK Electric Group is still HK$15 billion, but Lin Haoran knows that in another year, the total market value of HK Electric Group is estimated to reach HK$ to HK$ billion, and in two years, it will reach HK$ to HK$ billion.

Therefore, if you plan ahead for Hong Kong Electric Group now, you will not lose money no matter what.

To put it bluntly, even if he had not taken over the Hong Kong Electric Group, he would have made one or two times the profit by virtue of the shares he had acquired in advance, and he would not have lost money no matter what.

Thinking of this, Lin Haoran no longer had any intention of staying in Qingzhou Yingni’s office.

There are no important matters for him to decide here for the time being. Burton manages the company in an orderly manner, and the overseas cement industry is constantly expanding, which he is very satisfied with.

Originally, due to the small size of the Hong Kong market, the monthly profit of Qingzhou Cement Company was only one or two million Hong Kong dollars. Since last year, the real estate market in Hong Kong has been getting better and better, with construction sites everywhere. The monthly profit has increased to two or three million, which means that the company can make a profit of 20 to 30 million Hong Kong dollars a year.

This profit is not low, but Lin Haoran is not very satisfied.

Now that Burton advocates the development of overseas markets, the profits have begun to increase substantially. Starting from the first two months, the overseas market share has completely surpassed the Hong Kong market share and is constantly expanding.

Just like last month, in just one month, Qingzhou Yingni Company's profit reached more than 5 million Hong Kong dollars, and with the expansion of the market, this profit is also rising sharply.

In the future, after entering markets such as Singapore, Malaysia, and Thailand, it will be easy to make monthly profits of over 10 million Hong Kong dollars or even more relying solely on the cement industry.

Compared with Hong Kong's current population of less than five million, Malaysia, Thailand and other places have a population of tens of millions, and many cities have a much larger population than Hong Kong. The demand for cement is obviously much greater than that of a single city in Hong Kong.

As long as Qingzhou Yingni's cement maintains high quality, its reputation overseas will become better and better, and its market share will naturally increase.

When I got off the elevator, I saw that the three buildings, Qingzhou Building, Qingdao Building and Qingbao Building, were now connected by passages.

This is the commercial street developed by Burton.

Only two months passed from the time the suggestion was made to the time the property was put up for rent.

Now, two-thirds of the shops here have been rented out. The location of Qingzhou Yingni Company itself is very advantageous, and there are many office workers nearby. Just by renovating it, it has attracted many tenants and quickly formed a small business district.

Moreover, the popularity is quite good. In the future, as the popularity of this place increases, a simple renovation will be able to generate hundreds of thousands of Hong Kong dollars in profits for Qingzhou Yingni Company every month, and the investment in the renovation will be recovered in just one month.

Therefore, it is not that many companies cannot make money, but that those in power do not know how to use the company’s resources to make money, and many resources are wasted.

The cement factory is still very busy.

The booming real estate market has led to a significant increase in cement sales in Hong Kong. Even though Luzon Island no longer needs production here for its market share, the demand for cement here has not decreased.

Half an hour later, Lin Haoran appeared in the chairman's office in the Wan'an Group Building.

He made a phone call and asked Su Zhixue to come to his office.

The employees of Huanyu Investment Company had nothing to do in the past few months, so Lin Haoran directly merged them into the Securities Business Department of Su Group temporarily. While learning together, they also prevented their professional skills from being wasted.

Now, it's time for them to do the work of Universal Investment Company.

It didn't take long for Su Zhixue to arrive at Lin Haoran's office.

"Boss, what do you want to talk to me about?" Su Zhixue asked respectfully.

“Now, I have two tasks for you. One is to acquire shares of Wan’an Group, and the other is to acquire shares of Hong Kong Electric Group.

For Wanan Group, my goal is very simple, which is to privatize it, so you can go ahead and acquire it, but of course, the price cannot be raised.

Hong Kong Electric Group, we can absorb as much as possible without raising the share price. There is no limit. My request is very simple, our actions must not be discovered by others!" Lin Haoran said solemnly.

Wan'an Group is different from Qingzhou Yingni Company. Even if it continues to absorb shares, no one will say anything. After all, Wan'an Group is actually a family-owned listed company, a family-owned company with a listed name.

Even if he was discovered to have been continuously absorbing shares of Wan'an Group, he could just publicly announce the privatization of the company.

The previous Qingzhou Yingni Company was a British-owned enterprise with many shareholders. As long as his actions touched the interests of other shareholders, he would obviously be reported, just like the five British shareholders.

Today, he has US$9000 million in funds in his hands, equivalent to HK$4.77 million. He can also mobilize part of the funds from Qingzhou Cement Company and Wan'an Group at any time. In other words, his available funds are at least HK$5 million.

Moreover, Qingzhou Yingni Company is becoming more and more profitable, and the available funds will only increase in the coming months.

With such a huge amount of funds, under normal operation, Huanyu Investment Company may not be able to spend it all in half a year.

However, among this amount of funds, there are two that he needs to repay within this year, namely the first loan of HK$5000 million and interest from Yumin Financial Company, and a loan of HK$4500 million from Hang Seng Bank. These two loans require him to take out million yuan.

As for the second loan of HK$2.4 million from Yu Min Financial Company, Lin Haoran plans to discuss with Yang Changdao to extend the repayment period by a few months.

After all, if he used all the funds to repay the loan, he would not have much money left.

Compared with that little bit of interest, Lin Haoran still thinks it is more appropriate to use it for investment.

When the funds invested in gold are recovered, what will the loan of HK$2.4 million mean to you?
Given Lin Haoran's current status, there is no problem in extending the repayment period for a few months. For Yumin Financial Company, this is good news, after all, they can earn a few more months of interest.

As long as it is discussed in advance, there will be no problem at all.

At that time, when Lin Haoran goes to Yumin Financial Company to repay the first installment of funds, he can also take care of the extension of repayment for the second loan.

"Boss, are you planning to acquire Hong Kong Electric Group?" Su Zhixue asked in surprise.

After all, Hong Kong Electric Group is a giant.

"Well, don't tell anyone about this. If a few traders ask about it, just say it's just an investment and tell them not to tell anyone." Lin Haoran nodded and said.

"Boss, please rest assured. I know what to do!" Su Zhixue said, and then respectfully left the office.

For Lin Haoran, of course he trusts Su Zhixue very much. After all, he is his only subordinate who is 100% loyal.

(End of this chapter)