Hong Kong 1980: The Savage Era

Chapter 465 Chapter 467 [Year-end Summary]

Thursday, March 1th.

It has been more than two weeks since the beginning of the new calendar year, and our subsidiaries have all entered the year-end review phase.

Although the company misjudged the situation in the second half of last year, the Hang Seng Index has now rebounded, making up for the losses and giving an explanation to shareholders.

In the conference room of Zhaoan Group, Luo Qihong and a group of senior executives are holding a summary meeting.

It is worth mentioning that Cheng Jianshen, Chen Zhilong and Kang Wenyi were all promoted to the group and became group directors.

Bai Jinyan, the director in charge of finance, reported earnestly, "Our profit for the whole year last year was HK$83 billion, of which HK$40.3 billion was non-recurring profit (securities and finance), HK$34 billion was real estate and rental profit, and the comprehensive profit was HK$5.7 million."

Since most of the group's companies are wholly-owned subsidiaries, it is difficult to estimate the group's true market value, but the asset value can be roughly estimated at HK$650 billion.

There was joy on everyone's face; this profit figure had already exceeded that of group companies of the same level.

And this is only a part of Luo Qihong's industries. If Dehe Real Estate Company, Fujia News Company, China Gas Company and Luo Qihong's personal investment are included, the asset value is probably more than HK$2000 billion.

The profits from real estate and rental income alone are enough to beat a number of real estate companies. It has several hundred million Hong Kong dollars more than Cheung Kong Holdings in the same period, and is only slightly less than Sun Hung Kai Properties.

In fact, in terms of real estate development, the developed floor area is not as good as that of Cheung Kong Holdings, let alone Sun Hung Kai Properties. However, Siu On Real Estate Company has a large number of properties for rent, and the profits generated are more than those earned from real estate development.

After Bai Jinyan finished speaking, Chen Zhilong also began to report. "The group's land reserves have been updated and are currently 2300 million square feet, ranking second in Hong Kong, about 400 million square feet behind the first Sun Hung Kai Properties. The group also has a large number of land exchange rights and agricultural land. Last year, we completed sales of residential buildings with a floor area of ​​260 million square feet, with a profit of 730 yuan per square foot, a total profit of 18 billion yuan. This year's goal is to complete and sell 9800 million square feet of residential buildings."

Due to the strong rise of Siu On Properties, it has seized opportunities from companies such as Tai Seng Properties and Great Eagle Properties, but these companies will still be among the top real estate companies in Hong Kong.

Because they own good properties in important locations in Hong Kong, such as the valuable Eagle Centre Building owned by Eagle Properties on Harbour Road in Wan Chai.

In fact, Siu On Properties also had a great impact on Cheung Kong Holdings, snatching away two large housing estate projects - the Lam Tin MTR station project and the Hok Yuen old power plant project. This at least caused Cheung Kong Holdings to lose tens of billions of Hong Kong dollars in profits.

There is also cooperation with factory owners. Due to the good reputation of Siu On Real Estate Company and its superb grasp of the situation, those factory owners all want to cooperate with Siu On Real Estate rather than Cheung Kong Holdings Company.

Most of those factory owners have already moved their factories to inland areas, and naturally hope to make a fortune from the factory land.

For Zhaoan Real Estate Company, there is no need to use land reserves. It only needs to take out a small amount of start-up capital and complete the remaining construction period through bank loans, and Baohua Construction Company will also make a profit.

"We will try to release the second phase of Ligang City in early April. The price will be determined by the market. It would be best if they could be delivered in batches," said Luo Qihong.

Chen Zhilong nodded. "Okay. We plan to sell some floors that are not in a good location for 3700 yuan per square foot."

“This price is definitely in line with the market conditions in April. Once the market gets hot, good units will be sold at $4 per square foot.”

"Yes!" Luo Qihong nodded slightly. "The first order should try to recover 12 billion Hong Kong dollars to repay the bank loan."

Luo Qihong remembered that in the 90s, Hong Kong's economy was booming. Although many citizens could not afford to buy houses, it attracted many wealthy people from overseas, and of course, speculation was inevitable. However, the overall demand was still very large, and the demand for residential units would not be less than 50.

Real estate developers will not supply so much at one time. They naturally understand the principle of "hunger marketing" to stimulate house price increases and obtain greater profits.

Kang Wenyi then reported, "The land market did not plummet last year, only falling by about 12%, but we have acquired a large number of high-quality properties, totaling 143 million square feet, including 62 square feet of floor area in commercial buildings in Tsim Sha Tsui, Wan Chai and Causeway Bay, 41 square feet of shopping malls and shops in Tsim Sha Tsui and Causeway Bay, and the rest are luxury homes, with a floor area of ​​40 square feet."

"This is a property acquisition, which cost a total of HK$28.6 billion. The rental income from the property has been used up, and we still owe the bank a loan of about HK$5 million."

Such a huge capital expenditure did not affect the normal operation of Zhaoan Group, but there will be some problems with the subsequent dividends of Zhaoan Real Estate Company.

Luo Qihong wrote down the matters that needed to be explained later in his notebook, but did not interrupt the reports of other senior executives.

After they all finished reporting, Luo Qihong said, "Except for listed companies, other companies' financial reports do not need to be announced to the public to prevent media reporters from hyping them up."

"Publicly listed companies such as Zhaoan Real Estate must distribute dividends. As for how much to distribute as dividends, I will give you a minimum standard of 35% of the annual net profit. If it exceeds 50%, the person in charge of the company must report to me in person."

There is no way for listed companies not to publish their financial reports. Once the media catches them, it will have a great impact on the company's stock price.

After the meeting, Bai Jinyan followed Luo Qihong into the office.

The secretary was very considerate and helped to close the door. They knew that the boss and the boss's wife often had some intimate actions in the office, which were not convenient for subordinates to see.

Even though this is the top floor, not many people come here, but it's still not good.

"Wei Li and Li Mingzhi of United Group are old friends in Australia, and Li Mingzhi is a very generous person. His bid for Asia Securities is much higher than ours. We bid HK$2.3 per share, and Li Mingzhi bid HK$2.8, which is a full HK$0.5 more." Bai Jinyan said with some concern.

Li Mingzhi's United Group already has 6 listed companies under its umbrella, with a total market value of more than HK$95 billion, making it a considerable force in Hong Kong.

Li Mingzhi was also good at financial techniques. He made great use of the Ludao Building in Wan Chai that he had previously acquired from Zhaoan Real Estate Company, causing the market value of his companies to increase again and again.

This person has already caused dissatisfaction among the Hong Kong Securities and Futures Commission, but unfortunately no solid evidence has been found.

According to Luo Qihong, Li Mingzhi will withdraw from Hong Kong's business stage sooner or later, because that's not how the business game is played. Li Mingzhi obviously regards the SFC and the Hong Kong Stock Exchange as fools.

Therefore, these institutional companies will definitely kick Li Mingzhi out.

"Since Li Mingzhi is so rich, let's give it to him. Anyway, the industries of Asia Securities Company and the business of the group are highly overlapping. If you want to expand your private company, you can transfer a part of it from De'an Securities Investment Company to help you." Luo Qihong generously persuaded Bai Jinyan.

Who knew that Bai Jinyan refused, "No, the price offered by United Group is so high that I was planning to back off. In fact, Asia Securities is not worth the price for now, but I don't know what it will be like in the future."

Luo Qihong hugged Bai Jinyan and said with a smile, "Don't worry, Li Mingzhi has swallowed up Asia Securities Company, and he will spit it out in the future. You just need to be prepared for the next step."

(End of this chapter)