"Sheng Chen, Li Jiacheng from Cheung Kong Industrial just called and asked you to meet at the presidential suite of the Mandarin Oriental Hotel tomorrow at noon. Mr. Li Jiacheng said that Mr. Hu Yingxiang from Hehe Industrial will also come with him." He arrived at Hehe later in the morning. Chen Zhiwen of Ji Building got An Qi’s information as soon as he entered the office.
This is also the inconvenience of not having a mobile phone. There is no way to talk directly unless you are in the office all the time.
"Li Jiacheng, Hu Yingxiang." Chen Zhiwen thought for a while and said, "Okay, you will get back to them later, and I will keep the appointment on time."
Chen Zhiwen still felt very happy after snatching Lao Li's Hutchison Whampoa. Unfortunately, the other party didn't know what was going to happen in the future, so the feeling of happiness seemed not enough.
"Okay." An Qi left after receiving the reply.
"Wait a minute, ask the Hong Kong telecommunications company when Hong Kong will be able to popularize an American product called cellphone." Chen Zhiwen said again.
"Cellphone?" An Qi didn't quite understand.
"It's a wireless phone. We can carry a phone around and receive calls from others at any time." Chen Zhiwen explained: "It's probably a little bigger than your hand."
"Okay, I'll ask." An Qi nodded and agreed.
"When these problems are solved, we have to spend some money to research signal technology." Chen Zhiwen thought for a while and said.
Speaking of signals, Huawei naturally comes to mind. It will take more than ten years for this company to be established, which is a bit too late. Of course, in a place like Hong Kong, researching signal technology is also a daydream. However, after the reform of the mainland next door, talents in this field have Quite a few, and there is a high probability that he lacks funds for research, which suits him well.
It’s just that signal research is too powerful. It will be more troublesome in forty or fifty years, but that will be a long time later. No matter what, it will still be very useful in these decades. Besides, signal research is a high-tech industry. The golden finger of the prophet has no great use. In the early stage, it is possible to develop the domestic market with its financial advantage. However, in the future competition for global hegemony, there is a high probability that it will not be able to defeat Qualcomm in the United States and Huawei in China.
Chen Zhiwen still knows this, but the market is very large, and it is still very good to be medium-sized. In the 1990s, it is inevitable to make feature phones. Don’t think about dominating the signal technology, but if you have some technical patent foundation, at least you don’t have to be choked by others too much.
…
The next day, Chen Zhiwen came to the Mandarin Oriental Hotel as scheduled.
"Sheng Chen, this is Mr. Hu Yingxiang, the chairman of Hehe Industrial. Mr. Hu, this is Mr. Chen Zhiwen, the current chairman of Hutchison." After the three met, Li Jiacheng introduced with a smile.
"Hu Sheng, I have admired your name for a long time." Chen Zhiwen smiled and extended his hand to shake hands.
"What the hell, Chen Sheng's acquisition of Hutchison has increased my prestige as a Chinese. I have long admired Chen Sheng's name," Hu Yingxiang said with a smile.
"I heard that Mr. Hu is planning to build the tallest building in Hong Kong in Central? Mr. Hu's ambition is also to suppress Land!" Chen Zhiwen said with a smile.
Among the several super chaebols in Hong Kong in later generations, there was no Hu Yingxiang and the Hu family. However, in this era, the scale of Hu Yingxiang's Wo He Industrial exceeded that of Cheung Kong Industrial. In the 1970s, the greatest achievement of Wo He Industrial was the construction of a building. Central super building--Hehe Center.
The height of this building exceeds that of Hongkong Land's Connaught Building. It became a landmark of Hong Kong after it was completed in the early 1980s. However, at that time, Cheung Kong Holdings had already acquired Hutchison Whampoa, and it exceeded He Hup Holdings in terms of scale.
In the following years, Hu Yingxiang invested his family's funds in the mainland and built the country's first expressway: the Guangzhou-Shenzhen Expressway. He also built several large power stations in Guangdong, which made up for the domestic demand for electricity and transportation at that time.
But because of this, the Hu family, which invests in mainland infrastructure, has fallen a lot behind the Li Ka-shing, Lee Shau Kee, and Zheng Yutong families who have been struggling in the real estate market. After all, infrastructure can only say that their income is stable, but the huge profits are far less than the leverage they can use. The real estate industry with crazy financing.
Of course, other people’s pursuits may be different. In the 1980s, the Hu family’s tens of billions of Hong Kong dollars in infrastructure investment made a huge contribution to Guangdong’s economic development. The number of jobs it created, the wealth it generated, and the convenience it brought to the people were incomparable. Use numbers to describe it.
"How can it compete with Land? Hehe Building only adds some height to the antenna, but the actual height is incomparable. Besides, the geographical location is much worse than that of Kangle Building." Hu Yingxiang said with a smile.
"It's okay. There are still many old buildings in Central, as well as many old government buildings. The Hong Kong government's finances mainly come from real estate auctions. These places will be released to the market sooner or later, and we will still have opportunities by then." Chen Zhiwen said.
"This kind of thing is Land's favorite. It's not easy to get it." Li Jiacheng said, "Chen Sheng, on the other hand, may have a chance to compete with Land."
"Hutchison is said to be one of the four major foreign banks, but in fact there is still a big gap with Land." Chen Zhiwen shook his head and said: "After Land acquired Milk, the amount of land was more, and most of it was in the core location of Hong Kong Island. Hutchison was far behind. too much."
"So Chen Sheng wants to sell the land in a bad location and change it to a core location in the future?" Li Jiacheng asked.
"Li Sheng has a good vision, that's what he meant." Chen Zhiwen didn't deny it. This kind of practice is also very common in the real estate industry. Who doesn't want to go to the city center after their business grows big? Ordinary people who have money want to buy a house in the city.
"Today, Hu Sheng and I asked Chen Sheng to come here to discuss the possibility of cooperation between us." Li Jiacheng continued.
"How to cooperate?" Chen Zhiwen asked.
"I know that Chen Sheng is planning to sell a lot of Hutchison's non-core land, as well as some real estate projects that are already underway. Hu Sheng and I also know the current situation of Hutchison, so our idea is that Hu Sheng and I will still If Chen Sheng establishes a joint venture company, the joint venture company will directly purchase land, properties or half of the project from Hutchison in cash, so that Hutchison will be able to obtain the needed funds immediately." Li Jiacheng said calmly said:
"The joint venture will be run by Hu Shenglai and I, and the net profit after the operation will be distributed as dividends in proportion to the future. Chen Sheng, I know you are optimistic about the future real estate industry, so in this way, if land prices rise, Chen Sheng can still benefit from the joint venture." What does Mr. Chen think of this cooperation plan to gain profits from rising land prices?"
"It sounds good, but where will the money come from for the joint venture? We can't be allowed to inject capital first, right? If I inject capital first, why should I sell it to you? I have already developed it myself." Chen Zhiwen asked with a frown.
"There is no need to inject capital. I will contact a group of banks to obtain funds and use the properties sold by Hutchison as collateral. When the future project is completed, we will return the principal and interest of the bank loan." Li Jiacheng said.
"Will the bank syndicate provide 100% of the mortgage funds?" Chen Zhiwen asked. Suppose a project is sold at a price of HK$20 million. According to market rules, if the bank is willing to pay HK$14 million, it is already very good. This has become the default standard situation in the banking industry. Initially, Chen Zhiwen wanted HSBC to increase the loan ratio to 80%, but HSBC rejected it. Later, he found several informal small banks and finally managed to achieve it.
In this way, the risk for banks is already very high. Once land prices fall, banks may lose all their money. It is very likely that a project worth tens of millions can bring down a large bank. This kind of thing has happened many times in Hong Kong before. Second-rate.
"So this requires the official seals of our three companies. That is, our three companies must bear joint and several liability. If the project loses money in the end, we need to take the money ourselves and return it to the bank." Li Jiacheng said.
"With this move, Li Sheng is fully confident that the real estate industry will rise on a large scale in the future?" Chen Zhiwen nodded and said, everything is borrowed from other people's funds. As long as the real estate prices rise, there will be no problem. After the project is over The profits can certainly easily cover the principal and interest of the bank loan, but if real estate prices fall, it can drag everyone involved into the abyss.
"Isn't it the same for Chen Sheng? In the past two years, I was frightened by Galaxy Real Estate's investment in industrial real estate." Li Jiacheng said with a smile: "But now the industrial real estate has increased by 20%, Chen Sheng has won."
"Yeah, I'm very confident too." Chen Zhiwen smiled. Who can be more confident than him about the future real estate situation.
Li Jiacheng asked: "We can conduct a comprehensive review of the joint venture's accounts after each project is completed. What does Mr. Chen think?"
"Good idea, I will consider this matter carefully." Chen Zhiwen nodded and said.
(End of chapter)
