I Want To Be a Rich Man on Hong Kong Island - Chapter 516

Chapter 516: [Layout Hutchison Foreign Company]








Chapter 516 [Layout Hutchison Foreign Trade]

In mid-January, He Yuanzhang sent the Global Group's annual report (1971) to Wu Guangyao.

Shipping has indeed begun to decline sharply. The total profit of Global Shipping last year (1971) was US$900 million, and the profit of US$1.15 billion in the higher peak period (1969) has dropped by more than 20% of its profit;

However, Wu Guangyao is already very satisfied. Since the closure of the Suez Canal in 1967, some industry media pointed out that Global Group has earned 20% of the profits of global shipping; and Wu Guangyao knows that 20% of the data may underestimate Global Shipping. 25 % Should be almost the same!

After all, before the closure of the Suez Canal, the total deadweight of the global shipping fleet far exceeded that of the Soviet Union, approaching the total deadweight of American merchant ships. It can be said that in recent years, Global Shipping has controlled the economic lifeline (oil) of many countries.

Despite the decline in shipping profits, the profits of the terminals have begun to rise sharply; Global Shipping currently has a total of 42 ports (including under construction), and last year (1971) made a full profit of 260 million U.S. dollars;

Terminal services will undoubtedly become the next profitable tool for Universal Group!

Wu Guangyao remembers that after Li Chaoren acquired Hutchison Whampoa, Hutchison’s Kwai Chung Container Terminal set a record of HK$5.5 billion in annual profits in the 1980s;

You can imagine how profitable the terminal is!

Hong Kong’s Kwai Chung Wharf has always been the world’s top three container terminals in throughput, because Hong Kong is the mainland’s trade vest;

Regardless of whether it is exporting or importing, the mainland will change the goods into a vest in Hong Kong before trading;

Because of this, Hong Kong’s Kwai Chung Pier is so busy!

Kwai Chung Container Terminal According to history, there should be nine, and currently seven have been vested:

Universal Group has exclusive rights to Kwai Chung Container Terminals No. 1, No. 2, and No. 3;

American Seaway Transportation Company owns the rights and interests of No. 4 Kwai Chung Container Terminal;

Japan Dashan Shipping Company owns the rights and interests of No. 5 Kwai Chung Container Terminal;

Modern Container Company, formed by three European shipping companies and local foreign companies, owns the rights and interests of No. 6 Kwai Chung Container Terminal;

International Container Terminal Company under Hutchison International, owns the rights and interests of No. 7 Kwai Chung Container Terminal;

In other words, Kwai Chung Container Terminal also has container terminals No. 8 and No. 9, which have not yet been tendered.

While Wu Guangyao regarded Hutchison Holdings as something in his pocket, it owns 1.2 Kwai Chung Container Terminal rights;

At the same time, as far as Wu Guangyao knows, Japan's Dashan Shipping intends to sell the interest in the No. 5 Kwai Chung Container Terminal;

Universal Group will naturally not be polite. I am afraid that in a few years, Universal Group will own 5.2 container terminals in Kwai Chung, occupying more than half of the Kwai Chung terminal!

The only trouble is that before the return of Hong Kong Island, the Mainland was clamoring to reallocate the rights and interests of the terminals in the Kwai Chung area;

However, Wu Guangyao is confident that the mainland will definitely win over the Wu family;

Of course, the Wu family can also vote for it, and sell at most one container.

Not only Hong Kong’s Kwai Chung Wharf is making money, but the two container terminals invested by Singapore have also begun to make efforts;

Singapore’s port itself is also the next three major ports, so the future profits of Singapore’s two containers will not be lower than the two container terminals in Kwai Chung;

Universal Group also has container terminals in developed countries such as the United States, Japan, and the United Kingdom, as well as container terminals in large countries such as Brazil, Argentina, Mexico, and South Africa;

It can be said that the current achievements alone have surpassed the terminal business of the previous life of Li Chaoren (excluding inland ports);

After all, the terminals of Universal Group are all located in ports with the largest throughput in the world.

The pillar industries of the Global Group are shipping, terminals, and aviation, and the potential of aviation is also very large;

For Hong Kong Island Airlines, last year (1971) made a profit of 22 million U.S. dollars;

But the money still cannot be used for dividends, and needs to continue to invest in the purchase of aircraft and other matters;

Since the acquisition of Island Airlines in 1953, for nearly 20 years, Island Airlines did not bring Wu Guangyao a point of dividend, but instead posted an investment of tens of millions of dollars;

The real explosive period of the aviation industry began in the 1980s. At that time, the profits of Hong Kong Island Airlines will greatly increase;

In the 1980s and 1990s, a Cathay Pacific Airways accounted for 65% of Swire Pacific’s profits;

You should know that Cathay Pacific’s real estate on Hong Kong Island was already very strong at that time, but Cathay Pacific’s profits still far exceeded real estate projects;

Because of this, Wu Guangyao spared no effort to purchase aircraft in anticipation of the explosion of the aviation industry.

At the shareholders meeting of Universal Group, Shen Bi’s behavior suddenly made Wu Guangyao uncomfortable;

Shen Bi obviously hopes that HSBC will have a certain right to speak in the Global Group, so he tried several times;

However, Wu Guangyao, based on the fact that HSBC only enjoys the right to dividends and financial supervision, quietly prevaricates back.

Shen Bi was promoted to the general manager of HSBC last year (1971), while Sandus still served as the chairman of HSBC;

In all, HSBC has already started the "Shen Bi Era".

Afterwards, Wu Guangyao pondered in the office.

Inside HSBC, Wu Guangyao may have been regarded as an opponent;

In other words, the HSBC in the Shen Bi era, Wu Guangyao will not be the “only choice” for HSBC's Chinese capital.

Then Wu Guangyao sent HSBC to help him win Hutchison Bank. Isn’t it any more stable?

"I can't put all my hopes on HSBC!" Wu Guangyao muttered to himself.

At this time, the market value of Hutchison International is 4.5 billion Hong Kong dollars, and it is obviously not worthwhile to use funds to acquire shares;

Since the stock market plummeted in 1967, Wu Guangyao also acquired 15% of Hutchison International’s shares, but it was not very useful;

So we can only do another way!

Wu Guangyao has three reasons for having to buy Hutchison Holdings:

First, if you bought the Hutchison Foreign Company, it would be the first Chinese to take over the British-owned foreign firm. After all, Wharf is not a foreign firm; therefore, in order to further enhance the influence of the Wu family, this Hutchison Foreign Firm must be acquired. ；

Second, Hutchison Holdings is an associate company of Watsons and Whampoa Dockyard, which controls 30% of the shares of these two companies. As long as the acquisition of Hutchison Holdings, a little further, the two companies can be made subsidiary companies; Watsons is in The retail, cosmetics and other fields have developed very well, and the more than 2 million square feet of land of the Whampoa Dockyard in Hung Hom is even more valuable.

Third, the terminal of Hutchison Holdings, which is also a valuable asset.

The most important thing is that if Hutchison Foreign Trade finally falls into the hands of Li Chaoren, what Wu Guangyao has done before will be greatly reduced!

If Wu Guangyao wants to acquire Hutchison Holdings, it is a relatively important method to absorb Hutchison International’s shares in the face of the stock market crash;

But it’s not insurance, and things are not beautiful enough!

At that time, Cadezun still chooses to accept the acquisition proposal from HSBC in case by any chance;

Would Wu Guangyao put all his hopes on HSBC again?

If Everbright Bank is the largest creditor of Hutchison Bank, then Wu Guangyao has the right of first refusal;

Even if it launches a hostile takeover, it is considered a famous master!

Thinking of this, Wu Guangyao became enthusiastic;

Because Qi Dezun did talk to Wu Guangyao about the loan, but he did not fully agree to his request at the time;

Although it is one time and another time, Wu Guangyao knows that Qi Dezun still needs a lot of loans;

At this time, Hutchison Holdings, which is under the control of Qi Dezun, can not help but invest heavily at home and abroad, and is also keen on stocks;

If I suggest that I can lend him a loan, Qi De Zun will definitely do the more the better.

(End of this chapter)