Chapter 631
Conspiracy
2 Queen's Road.
The 72-story Cheung Kong Centre, while not the tallest among Hong Kong's many skyscrapers, is certainly one of the most talked-about.
This building is the headquarters of the 'CK Asset Holdings Group', which comprises six listed companies with a total market capitalization of HK$1.2 trillion.
The current organizational structure of the 'CK Asset Group' is: CK Asset Holdings Limited – Hutchison Whampoa, Hong Kong Electric, CK Infrastructure Holdings, CK Life Sciences, and Sina.com.
Cheung Kong Holdings is the parent company, while Hutchison Whampoa, Hong Kong Electric, Cheung Kong Infrastructure, Cheung Kong Life Sciences, and Sina.com are subsidiaries.
As for its subsidiaries, there are numerous ones. Hutchison Whampoa alone owns Husky Energy (Eaglebridge Mining), International Terminals, Hutchison Telecom, Watsons, and many other large enterprises.
Husky alone, through its acquisitions of U.S. natural gas assets and the Canadian Eagle Bridge Mining Company over the years, has doubled its assets compared to its predecessor. Eagle Bridge Mining is the world's third-largest copper mining company and the sixth-largest lithium mining company.
The international container terminals and Hutchison Telecom assets are roughly the same size as in the previous life, but they may have added assets like Ningbo Port, making the overall size slightly larger.
Finally, there's Watsons. In this life, Watsons' retail and manufacturing scale is at least 1.5 times that of its predecessor. This includes acquiring Southern Enterprises in the United States, securing the naming rights for 7-Eleven convenience stores worldwide, and acquiring numerous retail companies in Europe, transforming it into a global retail and manufacturing enterprise.
The subsidiary, Hutchison Whampoa, is much larger than it was in its previous life, while the parent company, Cheung Kong Holdings, is naturally more than twice the size of its previous life.
Although CK Asset Holdings is still primarily a real estate company, it owns a vast amount of commercial real estate. For example, it owns several Central Towers such as Exchange Square, which is an investment that CK Asset Holdings did not achieve in its previous life. In addition, it also owns large commercial real estate in Tokyo, Japan and Orchard Road, Singapore, which are also very valuable.
Of course, CK Asset Holdings also owns another 'heavy asset': the 18 Shangri-La hotels worldwide (the properties are also owned by the company).
Cheung Kong Holdings also has another "heavy asset," namely "Cheung Kong Food & Beverage Group," which owns numerous brands such as "Red Bull," "Master Kong," "Vitasoy," "Nissin," "Nongfu Spring," and "Wanglaoji," making it a global comprehensive food and beverage group.
Cheung Kong Holdings and Hutchison Whampoa are such large companies, and other companies like Hong Kong Electric, Cheung Kong Infrastructure, Cheung Kong Life Sciences, and Sina.com are also doing very well.
In addition to being one of the two electricity suppliers in Hong Kong, Hong Kong Electric has also invested in projects including thermal power plants and power grids in countries such as Australia, Thailand, India, mainland China, and Malaysia.
The key point is that Hong Kong Electric, originally a subsidiary of Hutchison Whampoa, transformed into a subsidiary of Cheung Kong Group last year through a share swap.
As a result, the Chan family's shareholding in HK Electric suddenly increased.
Cheung Kong Infrastructure is the flagship enterprise of Cheung Kong Group for infrastructure investment, currently mainly investing in highways, bridges and other infrastructure projects in mainland China.
CK Life Sciences is a company that began investing in biopharmaceuticals and medical equipment in the late 1980s. After more than a decade of investment, it has entered a stage where it has achieved some results. At the same time, CK Life Sciences is also making significant investments by collaborating with foreign biopharmaceutical giants such as Amgen and Procter & Gamble to introduce their products to the mainland.
Sina.com, on the other hand, represents Cheung Kong Holdings' internet investment strategy. Established in 1997, it aims to create a portal website for the Chinese-speaking world, primarily targeting mainland China, Hong Kong, Taiwan, and Macau. Its IPO in late 1999 was a sensation in Hong Kong, with long queues forming everywhere.
"Dad, through the acquisition, Sina.com has now become the largest outdoor advertising owner in mainland China." Chen Zejing, chairman of the board of directors of Sina.com, is reporting to his father, Chen Wenjie.
Chen Wenjie has three sons and one daughter. His eldest son, Chen Zerui, has already become the general manager of Cheung Kong Holdings and is the true successor.
The eldest daughter, Chan Sze-ki, serves as the CEO of the "Chan Man-kit and Son Trust," which manages the reinvestment strategy of the dividends Chan Man-kit has received from Cheung Kong Holdings over the years, with assets reaching hundreds of billions of Hong Kong dollars.
The second son, Chen Zeli, is an executive director of Hutchison Whampoa.
The youngest son, Chen Zejing, serves as the executive director and chairman of the board of directors of two emerging companies—Cheung Kong Life Sciences and Sina.com.
Of the four children, Chen Zerui, the eldest brother, naturally takes the lead.
After listening to his son's work report, Chen Wenjie said, "Besides wireless business, outdoor advertising in mainland China is indeed a source of short- to medium-term profit for portal websites. But in the long run, portal websites need more stable sources of profit."
Chen Zejing said in surprise, "Father, portal websites are a good industry in themselves."
Chen Wenjie shook his head and said, "Your grandfather wants you to plan Sina.com's entry into the online gaming industry, and this is a major strategy."
Upon hearing "Grandpa's meaning," Chen Zejing immediately exclaimed with delight, "That's wonderful! As the birthplace of online games and one of the world's most important regions, Hong Kong has an excellent environment for engaging in online games. However, this will inevitably lead to competition with 'Midea Games Entertainment,' a subsidiary of the Changgong Group. Of course, as a global gaming giant, Midea Games Entertainment certainly doesn't take Sina.com's gaming division seriously."
In late 1996, Hong Kong released "Ultima Online," a massively multiplayer online role-playing game (MMORPG). In 1997, it released "Legend of Mir" and "Lineage," which led the global online gaming boom.
Chen Wenjie said, "The gaming industry is an emerging industry in Hong Kong. It has never been the exclusive domain of Midea Entertainment Games, but rather a matter of Hong Kong's economic strategy. Of course, Midea Games Entertainment is the representative and leader in this industry. But this market is huge, and Sina.com can naturally choose to invest. Here are two game proposals, one for 'Bubble Fighter' and the other for 'Audition Online.' You can use them as product proposals for Sina.com."
Chen Zejing took it with a puzzled look and immediately began to read it carefully. He was surprised to find that the plan was very comprehensive.
"This is?"
Chen Wenjie waved his hand with a smile and said, "Anyway, it's a very good proposal. You should start the project as soon as possible and try to develop it within one or two years. In addition, Hong Kong's game industry must surpass Japan and South Korea. This is also part of the grand strategy of 'cultural revitalization of Hong Kong,' and we should also be a participant in it."
Yes, Father.
Today, "Culture Revitalizes Hong Kong" has become a major strategy strongly supported and recognized by the Hong Kong government and citizens, as Hong Kong culture, comics, and the gaming industry are renowned worldwide. For example, almost all of the world's highest-rated variety shows have purchased their Hong Kong rights, including classics such as "Who Wants to Be a Millionaire," "The Voice of Hong Kong," "China's Got Talent," "Big Brother," and "Man vs. Wild." Furthermore, Hong Kong dramas and HK-TOP (Hong Kong music) have sparked a "Hong Kong wave" in Asia, enjoying immense popularity and even beginning to penetrate Europe and America.
Since Hong Kong defeated international speculators in 1998, its economy has recovered and improved rapidly.
Entering the new millennium, Hong Kong's economy, led by industries such as technology and culture, became a pioneer in Asian economic development.
At the same time, the influx of tourists to Hong Kong (with the huge influence of Hong Kong culture) boosted the retail industry and other sectors, leading to a faster recovery of the economy.
Suddenly, both the real estate and finance sectors began to recover, creating an Asian miracle.
At this time, there was a company in Hong Kong that attracted much attention from the market, and that company was 'Ka Fai Group'.
The predecessor of Jia Hui Group was IT apparel retail, which gradually developed into a comprehensive group enterprise integrating apparel, real estate and finance. At its peak in 1997, its market value reached more than HK$5 billion.
经历1997~1998的暴跌后，到了2000年3月，市值反而涨到80多亿港币。
"Tick-tock. Tick-tock"
Guan Jiahui's beautiful figure appeared in the office building of Jia Hui Real Estate, and all the employees couldn't help but look up.
Miss Guan
Everyone still calls her 'Miss Guan'.
Since its inception, Ka Fai Properties has essentially operated under a 'professional manager' management model, with each CEO coming from a large conglomerate; the company has already had three CEOs. Kwan Ka-wai, as Chairman of the Board, consistently issues crucial orders at critical moments, leading to its rapid growth into one of Hong Kong's top 50 listed companies.
"Ms. Kwan, the redevelopment plan for THE ONE has been approved by the Audit Commission. Also, SOGO Department Store in Causeway Bay is preparing to open a Sogo Club on floors 11-16."
President Li Songcheng was diligently reporting his work to Guan Jiahui, handing her a document to her female assistant. He was from the management team of Cheung Kong Holdings and had been invited by Jia Hui Group to serve as CEO.
If it weren't for the intervention of the Chen family, he would never have given up his position in Cheung Kong Holdings to join such a company.
But now, Li Songcheng is glad that he came to Jia Hui Group, because the company is developing too fast.
At the peak of the real estate market in 1997, he cashed out more than 2 billion HKD in assets; starting in 1998, he began to spend huge sums to buy up properties at rock-bottom prices, and successively cooperated with Lane Crawford Department Store Group to acquire SOGO Department Store in Causeway Bay, including the building property, for a total of 38.8 billion HKD; in 1999, he acquired the Tung Ying Building of the Ho Tung family for more than 12 billion HKD, and prepared to redevelop it into THE ONE high-rise retail building.
In addition, Jia Hui Group also acquired properties worth 2 billion yuan and securities worth over 1 billion yuan, making it a true "bottom-fishing king".
Of the market capitalization of over 8 billion, IT apparel retail only contributed one-fifth; the rest came from investments in real estate and securities.
Guan Jiahui looked at the information and said in surprise, "The two giant advertisements at SOGO Department Store generate 5000 million in revenue every year?"
Li Songcheng said with a smile, "The return on investment for Sogo Department Store is very high, consisting of three parts: rent, advertising revenue from the exterior walls, and a share of the department store business."
Guan Jiahui was overjoyed, because the main investor in the SOGO Department Store building was Jia Hui Group.
“Okay. THE ONE and SOGO Department Store are the highlights of our Jia Hui Investment, and also our major foray into retail commercial real estate. In addition, we also need to continue to consider projects in mainland China.”
"clear"
After cashing out in 1997, Jia Hui Group had only a little over 20 billion yuan in cash flow, but when it bought back at the bottom in 1998, Jia Hui Group had 100 billion yuan in funds at its disposal.
The banking connections behind this startled Li Songcheng.
Of course, Li Songcheng had some guesses about the company's two beautiful chairpersons and directors, but he just didn't dare to say them out loud.
After giving a brief report, Li Songcheng went out to attend to his own business.
Within the company, the chairman has the final say on major decisions, but Li Songcheng suspects that Chairman Guan Jiahui is also guided by someone behind her. As for the company's affairs, both big and small, he, as the CEO, is primarily responsible.
But he didn't dare to act arrogantly in front of the chairman, who had a powerful background that allowed Cheung Kong Holdings to cooperate with him and Ping An Bank to give him the green light.
As Li Songcheng stepped out of the chairman's office, a fragrant breeze wafted over, and he quickly greeted him, "Director Li."
Li Jiaxin said with a smile, "I'm looking for Miss Guan, President Li, you're busy!"
"Okay, Miss Li."
Li Jiaxin stormed into Guan Jiahui's office, first complaining, "Why can't you say things in private? Why do you have to call me into your office? I'm not your subordinate!"
Since learning that she had no hope of seizing power in Jia Hui Group, Li Jiaxin, the second largest shareholder of Jia Hui Group, has become less concerned about the company.
Kwan Ka-wai said, “It’s good news. Site No. 19 in Shek O is going to be sold. This site involves two sites. One site is Rural Building Lot No. 256, covering an area of approximately 43,600 square feet. The other site is Garden Lot No. 68F, covering an area of approximately 125,302 square feet. The total site area of the two sites is approximately 168,902 square feet.”
Upon hearing "Shek O site," Li Jiaxin's eyes lit up, and she exclaimed, "Am I eligible to buy it?"
It is important to know that there are a total of 22 properties in Shek O, most of which are owned by The Shek O Development Company Limited. The company is composed of individual owners, and becoming an owner requires a vote, making the threshold extremely high.
Guan Jiahui smiled and said, "As a director of Jia Hui Group, I should be eligible to buy. Of course, if you can't pass the review, I will buy it in the name of Jia Hui Group."
Li Jiaxin naturally disagreed and immediately said, "I am definitely qualified."
He added to himself, "At worst, I can ask Sir Chen for help and use my connections."
Guan Jiahui and Li Jiaxin own a considerable number of luxury properties, mainly due to the guidance and influence of Chen Guangliang, and because they regard investing in luxury properties as an 'investment'.
Kwan Ka-wai continued, “The original owner of this property was Chung Bin-chuen of the Hyatt Chung family. He bought it in 1997 for HK$2.41 million, and now it’s being put up for sale for HK$1.3 million at a loss of nearly half. Based on the advice of our real estate consultants, the site is to be redeveloped into a super luxury residence. Whether for personal use or investment, it would be a very nice thing.”
"Okay, thank you!"
Guan Jiahui smiled, thinking that Li Jiaxin had finally submitted.
In fact, it was Sir Chan who suggested this luxury home investment opportunity to her. According to Sir Chan's estimation, the purchase and redevelopment of this property would cost a maximum of HK$2.5 million. However, in the future, it would be worth at least HK$20 billion, which would undoubtedly be a huge return on investment.
Guan Jiahui owns many luxury properties, such as the four super luxury mansions in 'Sky High', which she actually owns; however, they are just the main residence of her 'Chen family'.
But in reality, people don't really like living in 'Sky High' because it's too ostentatious.
Li Jiaxin suddenly moved closer to Guan Jiahui, put her arm around Guan Jiahui's waist, and whispered, "Sister, Sir Chen has helped us buy at rock-bottom prices this time, how about we do a 'one dragon, two phoenixes' deal?"
Kwan Ka-wai spat out, "You, don't you even know how old Sir Chan is? He's lost all his former prestige. We should be grateful that he can keep us all to ourselves!"
What's there to be thankful for? It's that I'm not living the life of a widow.
"Pshaw, he's just trying to stay healthy. Otherwise, would you really think he's incapable?"
The more they talked, the more outrageous it became, but Guan Jiahui just happened to like it. The two women quickly made an agreement to try to please Sir Chen.
However, to be fair, Kwan Ka-wai is already 38 years old this year, but she looks like she's only 27 or 28, or even under 30. No wonder she always attracts attention wherever she goes. (End of Chapter)