Chapter 150 Billion Plan
If Daya Real Estate encounters such a failure, it will be seriously damaged. No matter whether it is backed by Daya Building Materials System or not, it will not be able to revive all at once.

In the previous life, Hang Lung Properties, which was as famous as the Cheung Kong Company, was blinded by the current profits and became extremely ambitious, investing a large amount of money to purchase nine subway properties.

Eight commercial buildings and a private housing estate with 8 residential units were built, with a construction cost of more than HK$8000 billion. Based on current prices, the total property price is HK$70 billion.

Then, house prices fell in half, resulting in a loss of HK$20 billion, and the entire company almost could not recover in the next ten years.

However, some people may ask, even if the price is cut in half, there will be no loss, because the cooperative development with the subway has a guaranteed profit, and it is necessary to bear an annualized loan interest of 15%. It would be strange if there is no loss.

Moreover, starting from the middle of this year, Hong Kong's real estate market will see a sharp rise in housing prices, but the increase in land prices will not stop, further squeezing profit margins.

There is no need to take risks to make the last profit which is not very high.

"Okay, I'll listen to you. We'll go public first to raise funds and hold the cash in hand." Lu Zhihe nodded and said.

If you want to save the market and buy at the bottom, you must have a large amount of cash, and then you will become a living Bodhisattva in the Hong Kong real estate industry.

"As for real estate, there is no rush to recover funds. We can just continue with the previous projects as usual, or we can invest in some projects with a cycle of less than one year. They are about to be listed, so we can't just not do any projects, right?" Liu Zhicheng said with a smile.

"Moreover, Daya Mining also needs to raise funds and issue shares. Just raise funds by offering three shares for every ten shares. In this era, having cash in hand is king."

The collapse of Hong Kong's real estate market began in September 1982, but it had reached its peak in mid-9, after which trading volume began to decline significantly.

However, because many large financial groups are still optimistic about Hong Kong's future and have invested a lot of money, housing prices have been maintained.

In its previous life, in 81, Swire Properties bought a piece of land in Central at a sky-high price and invested in a large-scale real estate project.

Although history has changed because of my appearance, the general direction has not changed and it remains the same as it should be.

Nowadays, no matter what, we still need to consider the risks, and investing in projects that can quickly pay back is the best option.

Although there is still a year left, normal real estate company projects are cyclical and require a long period of preparation in advance before you can completely exit.

After Lu Zhihe left, Hao Qingwen came to report on his work.

"Mr. Liu, this year, the real estate business of Huangpu Group will make a profit of 100 billion Hong Kong dollars, and its market value has reached about 100 billion Hong Kong dollars. After the last phase of Huangpu City is completed, the fixed assets will also reach billion Hong Kong dollars."

The stock market is crazy now. I didn’t expect it to be equal to the market value of Hutchison Whampoa so soon, and its fixed assets will also reach HK$100 billion.

He is undoubtedly the richest man in Hong Kong, and under his own Shanfeng Investment, he also owns shares in Chigo International, Orange Technology, and Daya Mining.

In fact, there are many other forms of wealth, such as shares of Walmart, profits from gold investments, and so on.

"When will the last phase of Huangpu City be completed?"

"Mr. Liu, according to the original plan, it should be completed this year, but due to the construction of the Sail Building, it will take until next year to be completed."

"Well, this has nothing to do with you. How is the renting situation now?" Liu Zhicheng asked again.

"Mr. Liu, the leasing of the entire Huangpu City is going smoothly. After communicating with you last time, part of it has been completed.

90% of the space has been leased, and the new part to be completed this year will definitely complete the entire plan.”

Currently, the office rent in Whampoa City is only half of that in Central, and all of Whampoa City is built as Grade A office buildings.

What’s more impressive is that strong security measures have been established to enable tenants to work safely and will never be subject to illegal attacks.

Liu Zhicheng nodded and said, "Well, that's good. First, increase our popularity so that we can raise the rent later."

“Don’t worry, Mr. Liu. After we acquire the Star Ferry and Kowloon Motor Bus, we will first add a ferry service.

Kowloon Motor Bus will also optimize bus routes for Harbour City and Whampoa City to increase their popularity," said Hao Qingwen.

"Well, how is the construction of the Harbour City going?" Liu Zhicheng asked again when he heard him mention Harbour City.

"Mr. Liu, everything can be completed in the first half of next year." Hao Qingwen was well prepared and answered.

The Gateway is a complex of buildings that will be completed next year. It may be difficult to complete the leasing work, but it is really a good time to do so.

"Well, you need to strengthen the management of these self-owned properties." Liu Zhicheng said.

Originally, the rent this year was several billion Hong Kong dollars, but the newly built properties were all self-owned, and the interest on the loans during construction consumed most of the rent.

The business is so big that I can't do everything myself, but there are some things I still have to keep an eye on.

"How is the traffic flow in Harbour City and Whampoa City recently?" Liu Zhicheng asked again.

"Since opening, the business has been good, whether it is the gold and silver shop, clothing or catering, the business is good.
Especially when it rains, everyone likes to go shopping in Harbour City, and it will probably be the same when it gets hot in the summer." Hao Qingwen said with a smile.

“Okay, but we can’t just be satisfied with this. If Harbour City wants to go further, it needs to attract a large number of overseas tourists.
The spending power of this group of people is even stronger than that of Hong Kong locals. We should talk to more travel agencies and give them some benefits so that they can send people to Harbour City."

Liu Zhicheng took a sip of tea and continued, "Also, we can send people to distribute flyers and advertise at the Hong Kong International Airport.

Or you can buy advertising space on the back seats of Cathay Pacific Airways directly. In short, you have to attract people.”

"I understand." said Hao Qingwen.

I have to say that the Jardine Group is still very capable. The Harbour City project they created is very well designed, and many people fell in love with it after visiting it once.

This is the case with Hong Kong locals, except that most Hong Kong citizens just come here to have fun and don’t spend any money or spend very little.

But it’s different for overseas tourists. They come to Hong Kong once, so they have to buy something, right? At least they have to have a good meal, right?

"How much debt do we have now? How much cash reserves do we have?"

"Mr. Liu, our current debt is around HK$40 billion, and our cash reserves are also around HK$40 billion.
Should we pay back part of the loan? The interest is now 6 million Hong Kong dollars a year, which is really high." Hao Qingwen reported softly.

What Hao Qingwen said is not without reason, even though the current debt ratio is only 40%.

But the interest eats up hundreds of millions of profits, which is a bit uneconomical for a real estate company that mainly owns its own properties.

If the debt is not reduced, housing prices will be halved next year and the market value will inevitably fall, but Liu Zhicheng has his own debt reduction plan.

"Let's pay the loan first. Aren't we going to raise funds and issue shares soon? Let's start with 10 shares for every 3 shares. By expanding the market value, the debt ratio will be reduced, right?" "Mr. Liu, I'm afraid that such a large share offering plan will cause fluctuations in the stock market." Hao Qingwen said worriedly.

After all, he comes from a financial background, and raising 30 billion Hong Kong dollars will drain a lot of funds from the stock market.

“What are you afraid of? First, we will distribute 30 billion Hong Kong dollars in dividends, and then announce a fundraising of 30 billion Hong Kong dollars the next day. I don’t believe that we won’t be able to raise funds.

And I will subscribe for the corresponding shares in proportion." Liu Zhicheng has an overwhelming momentum.

Hao Qingwen saw the boss's determination and also saw the benefits of such a fund-raising. Although it was a dividend of 30 billion Hong Kong dollars, another 30 billion Hong Kong dollars was raised.

This inflow and outflow did not seem to increase the cash flow of Huangpu Group, but it expanded the market value of Huangpu Group.

Regardless of how much the price per share increases, even at the current price per share, the market value will reach HK$130 billion, and the debt ratio will naturally decrease.

Liu Zhicheng also thought so. Even if the company goes bankrupt next year, the market value will be 65 billion Hong Kong dollars, and there will be no problem with the debt of 40 billion.

Moreover, you can take out 40 billion in cash to buy at the bottom. If there is bank funds to cooperate, there will be no problem in taking out billion to buy at the bottom.

Moreover, with the US dollar funds he has in other places, he can take out tens of billions of Hong Kong dollars to buy at the bottom.

"You just need to follow the plan for real estate development. You need to hurry up and recover the funds for the real estate projects in Mong Kok and Yuen Long this year. There is no need to hold back on the properties."

"Okay, Mr. Liu, according to the current market conditions, these two projects can earn 5 million Hong Kong dollars." Hao Qingwen said.

"Don't announce this news for now. Announce it before fundraising. I will publicly accept an exclusive interview with Tiantian Finance News after the new year.

First, create a market, then announce the good news about the two subway properties, then announce the dividend plan, and then issue shares to raise funds. "

When Hao Qingwen heard his boss's crazy plan, his blood was boiling. It would be strange if the market value did not reach 150 billion Hong Kong dollars.

Originally, I wanted to say that I wanted to compete for the rights to develop subway properties, but then I remembered what my boss told me last time, so I had to hold back, otherwise I would be criticized again.

"Okay, boss. I will implement the dividend plan and share expansion and capital raising plan when I return."

"Yeah." Liu Zhicheng didn't give much explanation. He still believed in Hao Qingwen's ability, but he was afraid that he might be even crazier than himself.

In the afternoon, we continued to listen to the reports of Wang Xingfa and Niu Guangli, and the technology assistant Huo Haiqing listened on the side.

"Mr. Liu, Orange Technology sold 100 million Famicoms last year, including cartridges, and made a profit of HK$6.2 million.
The shipment volume of Walkman was about the same as last year, with a profit of 2100 million US dollars, while the sales of arcade games began to decline to 8000 units.
Profit of 770 million US dollars." Wang Xingfa briefly reported the revenue of the three major products last year.

"Well, what about printed circuit boards and LCDs?" Liu Zhicheng asked again.

"Mr. Liu, these two projects have generated sales of hundreds of millions of Hong Kong dollars, but the yield rate is not high.

As well as R&D investment, a subsidy of 2000 million Hong Kong dollars is needed." Wang Xing reported in a low voice.

For these two projects, Liu Zhicheng is purely using the market to cultivate technology in preparation for future market dominance.

But Liu Zhicheng had already been prepared. The losses now would be earned back by multiple profits tomorrow, just like the digital technology in the United States.

Now we have to invest tens of millions of US dollars every year, but there is not a penny in return, it is purely for technology reserve.

Because he knows that high-tech things require a long period of technological accumulation before they can take off.

In the field of electronic technology, Orange Technology can be said to have no accumulation of patented technologies. Only by continuous investment can it accumulate technology.

"Mr. Liu, the problem is the magnetic head for the Walkman. We can produce it ourselves." Huo Haiqing reported from the side.

"Well, Mr. Huo, you also need to expand your assistant team. The research tasks you are responsible for are heavy.
Moreover, it spans North America, Beijing, and Hong Kong. You can’t fly here even if you are a frequent flyer.” Liu Zhicheng nodded and said.

"Okay, Mr. Liu." Huo Haiqing replied.

If Liu Zhicheng is the general manager, Huo Haiqing is now equivalent to the deputy general manager, responsible for the scientific research work of the entire system.

Orange Technology has not yet exploded, but when digital, switch and chip technologies are fully developed, it will be close to becoming the world's richest man.

"Mr. Niu, please report on the work of Chigo International." Liu Zhicheng asked again.

"Mr. Liu, last year, we shipped 150 million fans. Due to the shift to mainland production, we made a net profit of HK$450 million. We shipped 300 million motors, making a net profit of HK$3000 million."

"Only 1 motorcycles were shipped, while 2 engines were shipped. The net profit from these two items was HK$1500 million.
The three major parts factories around the world can also generate a net profit of 3000 million Hong Kong dollars.”

"The Thai motorcycle factory can share 300 million in profits. Although Chigo International's R&D costs have increased,

But since last year, we no longer need the group's subsidies and can achieve a profit of 3000 million Hong Kong dollars," Niu Guangli reported.

"Well, that's good. We are finally making a profit. The next step is to get a return. There are two points. You don't have to hand over your profits. Prepare to build a joint venture factory in the mainland."

Liu Zhicheng looked back at Huo Haiqing and continued, "The second thing is to increase investment in research and development. After the motorcycle engine is completed, we can move into the research of automobile engine and gearbox technology."

"Also, how is the research on motorcycle electric starting, engine, and motor technology going?" Liu Zhicheng continued to ask.

Huo Haiqing was in charge of this task. He opened a small notebook and said, "Mr. Liu, the motorcycle has broken through the 110CC technology.
We have also imitated the electric start technology, but it is not yet stable. As for motors, we have already achieved mass production of more than 30 models of motors. "

More than 30 models of electric motors have been put into mass production. Huo Haiqing laid a small ambush and did not mention the major categories, and Liu Zhicheng did not ask in detail.

There are so many types of motors that Liu Zhicheng couldn't figure them out at once. He only knew that turbocharging technology was an extension of electric fan technology.

"Well, we must increase investment in research and development and strive to achieve mass production of all categories. If we want to do it, we must become an industry leader."

"Okay, Mr. Liu." Huo Haiqing nodded and replied.

"Mr. Niu, you have to be prepared for this. We are going to establish a joint venture in the mainland for motorcycles, and we also need to gradually transfer the production of motors to Shekou."

Liu Zhicheng continued to say to Wang Xingfa: "Mr. Wang, the same thing should be done here. You should gradually move the assembly of Walkmans and game consoles to Shekou."

Liu Zhicheng's plan was that after 86, Hong Kong would basically retain the R&D center, as well as printed circuit board and liquid crystal production.

　Dear book friends! Today is the 1st, the author is shamelessly

　　Asking for a monthly ticket! Asking for a monthly ticket! Asking for a monthly ticket!
　　
　
(End of this chapter)