Chapter 622 The mantis stalks the cicada and the oriole follows behind

Chapter 622 The mantis stalks the cicada and the oriole follows behind

Chapter 622 The mantis stalks the cicada and the oriole follows behind
Qi Dezun frowned slightly, and then said: "Mr. Yang, the current situation in Hong Kong means that there is no future in running a factory. Why do you want to go into the steel industry? Wouldn't it be better to invest this money in real estate? Junyi Warehouse under Huang and I has a lot of real estate that needs to be developed, and we can cooperate with you."

"Since you also said that real estate is better, why do you still care so much about trade?" Yang Wendong immediately asked back.

Qi Dezun paused and said, "This is my personal reason. It is not convenient for me to tell you."

"Well, I roughly understand, but this matter is imperative. You don't value Hong Kong's industry, but I do." Yang Wendong shook his head and said, "If you have any personal reasons overseas, please make preparations as soon as possible."

He guessed why, and this is also the tacit secret of many listed companies.

Whether it is an enterprise acquired midway like Qi Dezun, or an enterprise created from scratch like Li Jiacheng, in order to develop, it will eventually need to go public for financing. Once listed, the profit will only be based on the number of shares you own, and the remaining shares are actually equivalent to working for others.

Although there are benefits to raising funds through listing, how could a normal person with outstanding abilities be willing to do so? They will definitely find ways to increase their own income, and the best way is to reasonably transfer profits without breaking the law.

For example, if a listed company is in the real estate business, the chairman can set up a separate company and then cooperate with the listed company. Whether it is jointly developing real estate projects or becoming various types of suppliers, the profits can be transferred away. The transferred profits will naturally be 100% wholly owned by the chairman.

In the past, Li Jiacheng often played this game. He controlled Cheung Kong Holdings, which in turn controlled Hutchison Whampoa. According to the ratio of about 30-40%, if Hutchison Whampoa earned 100 yuan, Li Jiacheng would not get 20% legally.

Therefore, Cheung Kong Holdings and Li Jiacheng's family-owned holding company formed a joint venture in the name of developing Hutchison Whampoa's land. In theory, each side would get half, and with some tricks, 7% of the profits from a piece of Hutchison Whampoa land could be legally earned by his family.

Of course, things are generally not done too obviously, nor are they too greedy, but this kind of behavior has always existed, and the market also condones it because it is legal in itself. As long as listed companies can make normal profits, everyone will do it.

Obviously, the same is true for Qi Dezun's Hutchison. Even if he does not have too many shares, as long as he controls the company, he can set up a sole proprietorship and then use legal means to continuously siphon off profits.

This is also the reason why many people intend to go public. When they go public, they can raise funds, and then develop different projects in the name of the listed company, and then suck blood from them with their own company. In addition, stock fluctuations are also the best financial method to reap profits. Combined, the profits earned will be greater than if they were not listed.

Qi Dezun thought for a moment, and finally did not continue to dwell on this matter, so he said: "Since this is the strategic plan of Yang Sheng's company, I will not say much. Everyone is in Hong Kong, and there will definitely be some conflicts of interest. I also hope that everyone can make it clear to avoid conflicts later."

"That would be the best." Yang Wendong nodded and said, "In fact, the demand for steel in Hong Kong is very high. Even you and I cannot monopolize it. In the short term, my factory will still focus on industrial steel. I will not participate in construction steel for the time being. I think Hutchison can focus on developing this area."

Trade relies on existing factories and can expand rapidly, but the factories themselves cannot. In particular, steel involves many types and has high quality requirements. It will take at least several years to succeed in industrial steel alone.

As for construction steel, Yang Wendong actually does not plan to participate or participate too much. One reason is that the technical content is low and the route is large in quantity. The second is that industry is the foundation of many of his manufacturing companies in the future, which is more important. Although Changxing Real Estate is of high value, its core is property holding and development, not building houses. The third is that in a few years, after the mainland steel industry develops with the help of overseas equipment, it will export construction steel to Hong Kong. In this case, there is no need for him to compete with the mainland, as he is unlikely to be able to compete in terms of cost.

Qi Dezun thought it made sense and said, "Okay, I will make some appropriate changes to the trade business."

"That's good. I don't want to compete with Hutchison." Yang Wendong said with a faint smile.

After all, he is a major shareholder of Hutchison Whampoa. Even if there will be a takeover in the future, the relationship between the two parties is good now. Qi Dezun is at least not arrogant in front of him, so there is no need for conflict.

Qi Dezun added: "Mr. Yang, the core of your group in the future is industry, infrastructure and overseas industries. We and Hutchison will mainly develop in Hong Kong for some time to come, so the possibility of conflicts should be small.
But there is one thing I want to tell you. I am planning to launch a major acquisition in Hong Kong. On the one hand, I am worried that there will be a conflict with you, so I want to let you know first. After all, you are also a shareholder of Hutchison Whampoa. On the other hand, I also need a lot of financial support to complete this acquisition. "

"Which company do you want to acquire?" Yang Wendong asked curiously.

Qi Dezun said: "I want to acquire Hong Kong Electric."

"HK Electric?" Yang Wendong was almost shocked. This guy's ambition was really boundless. He actually took action against HK Electric. HK Electric was one of the top ten British financial groups in Hong Kong. It controlled the power generation of Hong Kong Island. Any economic activities on Hong Kong Island, whether it was building houses, commercial trade, renting office buildings, hotel operations, etc., all required electricity. Even the Governor's Office had to pay for electricity.

Originally, in the 80s, after losing Wharf Holdings, Hong Kong Land acquired 33% of Hong Kong Electric, but failed to integrate it into the Jardine Matheson Group. Later, Jardine Matheson suffered heavy losses in the 84 economic crisis and had to give Hong Kong Electric shares to Hutchison Whampoa of Li Jiacheng, which then allowed Hutchison Whampoa to acquire Hong Kong Electric.
Unexpectedly, because of his influence, Qi Dezun actually directly targeted Hong Kong Electric. This is equivalent to history going around in a circle and returning to the historical line ahead of time.

Qi Dezun smiled and said, "Among the many British companies in Hong Kong, HK Electric is the only listed company without a controlling family. It also owns a large amount of land and properties, and its power generation business is a safe bet. It will generate huge profits no matter what the situation is."

"HK Electric is indeed a good business." Yang Wendong thought for a moment and said, "But after you acquire it, can you successfully control this company? Their board of directors is very strong."

Qi Dezun said: "It's hard to say, the details still need to be negotiated, but no matter what, this business will not lose money. Mr. Yang of Hong Kong Real Estate must also be optimistic about it. Hong Kong Electric is a century-old British-owned enterprise, and Mr. Yang is also clear about the value of its land;
But HK Electric, like other British companies, did not think about developing the land, but continued to engage in power generation business. This is a huge waste. I can develop the real estate business after acquiring it. I don’t want to control power generation. As long as their management can guarantee stable returns, that’s enough.”

"You're right." Yang Wendong nodded and said with a smile, "In fact, we can't blame the management of HK Electric. Generally speaking, they don't like to expand their business. Only company founders like us. Managers prefer stability, especially for companies that are not controlled by major shareholders."

In fact, if he was not Chinese, he would have wanted to acquire HK Electric a long time ago. As a century-old enterprise, the amount of land owned by HK Electric is no less than that of Wharf Holdings. In the future, two of the four most famous walled villages in Hong Kong will be HK Electric's land.

Qi Dezun smiled and said, "Yes, I understand their idea, so after I intervene, we can cooperate to develop a huge piece of land, and Hutchison will also participate, and Mr. Yang will also be able to get some dividends."

"Okay, I can help you with this." Yang Wendong nodded and said, "I will ask Hang Seng, Standard Chartered and Citibank to give you enough credit lines, but the old rules still apply. Since I need a guarantee, the guarantee fee will be based on the rules of the Hong Kong market. In addition, you will also need to pledge the shares of Hong Kong Electric after you acquire it to me."

"The guarantee fee is no problem, but the shares of HK Electric need to be pledged to the bank, right?" Qi Dezun asked in return.

Yang Wendong said: "Yes, it is mortgaged to the bank, but if you have any problems with your funds, I will have the priority to purchase HK Electric's shares. I will also confirm this with Standard Chartered and Hang Seng."

"If the two banks agree, I will have no problem with that." Qi Dezun frowned and asked, "Mr. Yang, do you think this acquisition is not a good idea?"

Yang Wendong shook his head and said, "Not really. I am actually optimistic about it, but it involves financial risks, so it is better to have some guarantees. Or you can pledge Hutchison shares to me, and I can accept that."

Although the real estate crisis of 73 may not occur on time, it will definitely happen, because Yang Wendong's existence cannot change the direction of the general trend, at most it can only change the time;
The essence of the economic crisis is economic overheating. In the past two years, a large amount of international hot money has entered Hong Kong. As long as it exceeds the limit that the Hong Kong market can bear, the bubble will be burst even without external reasons.

Corresponding to the next real estate crisis, Yang Wendong was also unable to respond in time, but fortunately, with the scale of Changxing Real Estate, it had already started large-scale real estate investment, just like the land, so even if a crisis occurred, the impact would not be significant;
As for Hutchison Whampoa, Yang Wendong's approach is to remain unchanged in the face of ever-changing circumstances and encourage Qi Dezun to expand desperately. Once the expansion is fast enough, problems will naturally arise when an economic crisis occurs. At that time, Yang Wendong can step forward as the savior.

The biggest advantage here is that Qi Dezun can acquire many companies that Yang Wendong is not convenient to touch now with his British capital. And if Hutchison is on the verge of bankruptcy in the future, these companies will be his after he takes over.

Especially large infrastructure companies such as Whampoa Group and HK Electric, which were just small monopoly companies in Hong Kong in the hands of these traditional British companies. Now in his hands, if they are managed well, they can go global. However, it will not be easy, but at least there is a chance.

After thinking for a while, Qi Dezun felt that he would not face any risk, so he said, "Okay, I will pledge HK Electric's shares, but please keep this matter confidential. It will take some time for me to reveal my intentions before I acquire HK Electric's shares."

"No problem." Yang Wendong agreed.

What Qi Dezun is doing now is very beneficial to his future;

The mantis stalks the cicada, unaware of the oriole behind it. All you have to do is wait for the next economic crisis.

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(End of this chapter)