In Hong Kong, we build a global business empire
Chapter 288: 1 pounds for 20 shares
At noon, Lin Haoran, Tang Kun and Chairman Liu had lunch at Tanglou.
After lunch, President Liu said goodbye to Tang Kun.
Before leaving, President Liu gave Lin Haoran a wink.
Lin Haoran naturally understood what he meant and nodded with a smile.
After chatting with Tang Kun for a while in Tanglou, Lin Haoran said goodbye to Tang Kun and left Tanglou.
"Mr. Henry, please go to Yongsheng Building in the City of London." After getting in the car, Lin Haoran said to the driver.
This address was provided to him by President Liu and is said to be the address of his private office.
Chairman Liu started out in trade, and later got involved in real estate, finance, and investment. He became very successful in the British financial industry, so he set up his headquarters office in the City of London.
"Okay, Mr. Lin, please sit tight!" Henry said, then started the engine and quickly drove away from Chinatown.
More than twenty minutes later, Lin Haoran appeared in the underground parking lot of a more than 30-story building.
He took Li Weiguo and Henry into the elevator, went up to the first floor, and after confirmation from the front desk, he entered another elevator and directly pressed the button for the 31st floor.
A minute later, Lin Haoran had arrived on the 31st floor.
This is the office floor where Chairman Liu’s company’s executives work.
A boss worth 100 or 200 million pounds is not an ordinary person. He has at least tens of thousands of employees under him.
At this time, President Liu had come out to greet Lin Haoran.
"Haoran, you are finally here. I will take you to my office for tea." President Liu laughed.
"Uncle Liu, sorry for the wait." Lin Haoran greeted President Liu with a smile.
Li Weiguo and Henry stayed in the lounge, while Lin Haoran followed President Liu into a spacious office of about three or four hundred square meters.
In the City of London where every inch of land is valuable, it is indeed a luxury to use several hundred square meters for office.
The office is luxuriously decorated and has a 90-degree view, allowing you to see most of London.
"Uncle Liu, you really know how to enjoy life. This office is even more luxurious than the one I have in Hong Kong." Lin Haoran said with emotion.
"When you get old and have made so much money, you have to enjoy it. You can't bring it with you when you are born and you can't take it with you when you die. After a hundred years, what can you take with you? So you might as well enjoy it while you are still alive!" President Liu said with a smile.
"Uncle Liu, I agree with what you said. When we reach our level of wealth, money is indeed just a number. We should enjoy it more!" Lin Haoran agreed.
"Come and sit down!" President Liu said, pointing to the tea room that was divided into a small space.
It is really enjoyable to drink tea while admiring the scenery of London city from high altitude.
However, the weather in London is not as good as that in Hong Kong. It is often rainy and foggy, and the climate is very unstable. There are more frequent heat waves in the summer, and extreme weather such as storms in the winter.
The weather today is quite good, with a clear sky. This is also the best weather day for Lin Haoran since he came to the UK a week ago.
After sitting down, Lin Haoran asked curiously: "Uncle Liu, this building is called Yongsheng Building. Doesn't the whole building belong to you?"
This name doesn't seem to be given by the British, but instead has a Chinese flavor. Apart from anything else, there is also a Yongsheng Building in Hong Kong, but he knows that the Yongsheng Building has nothing to do with Chairman Liu.
"Haoran, you guessed it right. I bought this building six years ago, but it was a good decision. Over the past few years, the value of my building has tripled, and I can earn millions of pounds in rent every year from it. I only use three floors myself, and the rest are all rented out. In the City of London, the occupancy rate is particularly high." Chairman Liu was very proud when he mentioned this.
However, it only doubled in six years, which is not high for Lin Haoran.
For example, the building in Sheung Wan that his father Lin Wanan bought six years ago has increased in value four or five times since then, so doubling is really nothing.
From this we can see that compared with the housing prices in Hong Kong, the increase in housing prices in London is indeed not fast.
Of course, London is a city with a long history and its starting point is very high, so it is normal that housing prices are not rising fast.
"Uncle Liu, you are worthy of being the leader of the Chinese business community in the UK." Lin Haoran said with a smile, but he naturally would not say what he was thinking.
"By the way, Haoran, what do you think about investing in Shipuli Logistics Company?" President Liu did not continue to beat around the bush.
In the past few days, President Liu specially asked someone to learn about Lin Haoran's business experience. The more he learned, the more he felt that Lin Haoran's ability to make money was ridiculously strong.
This person is definitely a big consortium. If Shipli Logistics Company can get along with such a person, what about Squid Capital?
Shipley Logistics Company was not without room for resistance. "Uncle Liu, I'm not afraid to tell you that I've been busy investigating the British market these days and haven't had time to learn about this company. All I know about this company so far is what I heard from you and Uncle Tang." Lin Haoran shook his head and said.
"I have prepared detailed information about Shipli Logistics Company for you. You can take a look. These are all real information without any falsification. You can also investigate through your own channels." At this time, President Liu took out a document from the side and handed it to Lin Haoran.
The information is not much, but not too little either. It takes up more than ten pages of A4 paper, and every page is filled with English.
This is a British company, everything is in English, which is normal.
"It's all in English, so it shouldn't be a problem for you, Haoran. I see that you graduated from the University of London, so you didn't translate these materials into Chinese." President Liu continued.
"It's okay, I can understand it." Lin Haoran smiled and started reading.
He first quickly flipped through the document, which included the founding history and development of Shipley, its market share, annual financial statements, etc. It was indeed very detailed.
If he asked someone outside to investigate, they might not be able to conduct such a detailed investigation.
After quickly flipping through it, Lin Haoran returned to the first page and began to read it carefully.
President Liu stopped talking and patiently drank his tea while waiting.
Lin Haoran just took a quick look at the previous development history.
The most important thing is financial information, market share, etc.
There is even data from the first half of this year after competitors emerged.
In the past, Shipley's market share was indeed very stable, with no significant fluctuations.
However, in the past six months, Shipley's market share has dropped by nearly 30% to 40%.
No wonder its stock market fell so much.
Shipley mainly focuses on the British market. In addition, it also has logistics in Australia, Canada, the United States, Hong Kong and other markets. However, it does not involve much in overseas markets, and these places mainly focus on logistics and transportation of large commodities.
The company's profit last year was nearly 10 million pounds, and it is indeed a company with good earning power.
However, in the first half of this year, the profit was less than 3 million pounds, a huge drop. Even if the business in the first half can be maintained in the second half of the year, the profit will be less than 6 million pounds, not to mention that it is too difficult to maintain.
No wonder the stock price fell so badly, losing half of its market value in half a year.
It took Lin Haoran more than ten minutes to finish reading it roughly.
“Haoran, you see, although our market share has declined in the past six months, the downward trend has slowed down significantly. Most of the remaining customers are our loyal users, forming our solid base. This is the result of our hard work over the past two or three decades, and it is also the greatest confidence for us to gain a foothold in the market and not be afraid of challenges.
Many people are wary of the capital power behind the DHL Group, worrying that the influx of new funds will only be a short-term effort and difficult to sustain. Once the funds are exhausted, they will repeat the same mistakes.
But we firmly believe that DHL Group cannot engage in endless vicious competition. After all, they enter the British market for profit, not a meaningless price war. I don't believe they can operate at a loss for two, three or even longer years. This is not in line with the law of capital operation.
As long as you join the financing, I believe that it will not be difficult to maintain the position of the second largest logistics company in the UK! "Seeing Lin Haoran close the information, President Liu continued to analyze.
Lin Haoran nodded and asked with a smile: "If I am interested in financing, how many shares are you willing to provide me?"
"Ten million pounds in exchange for 20% of the shares, that's absolutely no problem." Chairman Liu replied, "We have discussed this issue at the board meeting. In fact, our company used to have sufficient capital reserves and had stable dividends every year.
Unfortunately, DHL Group entered the UK market shortly after the dividend was distributed and launched a vicious competition. Once the dividend was paid, it became very difficult to recover the funds from the shareholders. Therefore, we were faced with the problem of capital shortage.
At present, the company's monthly profit is only a few hundred thousand pounds, which is far from enough to fight against the vicious competition of DHL Group. But if 10 million pounds of funds are injected into the company's account, we will have enough confidence to reduce prices and compete to regain the lost market share! "
"Ten million pounds? This amount of money should be within the reach of Chairman Liu, right? Why don't you invest it yourself? In this way, maybe you can control this company?" Lin Haoran asked in surprise.
Ten million pounds, converted into Hong Kong dollars, is only about 110 million Hong Kong dollars. For Lin Haoran, he can take it out at any time.
But he also considered one problem. The Chairman Liu in front of him was also a big shot. It shouldn't be difficult for him to get this money, right?
“To be honest with you, Haoran, I became a shareholder of the company three years ago by purchasing the shares of a shareholder of Shipley. In fact, I am not very interested in the logistics industry. It is mainly because a very important local partner has been recommending me to become a shareholder.
At that time, I had ample funds, so I spent 10 million pounds to buy % of the shares. However, since last year, I have invested a lot of money in real estate development in cities such as London, Manchester, Birmingham, Edinburgh, etc., and I owe the bank tens of millions of pounds for this. Now I don’t have much cash flow to mobilize, and even the rent from this building is basically used to pay off my debts.
You also know that although many billionaires appear to be very wealthy, in fact, they do not have sufficient funds to use. Do you understand what I mean?" President Liu explained with a wry smile. (End of this chapter)
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