Chapter 145 - Insider News About Hongkong Electric Group
At three o'clock in the afternoon, Lin Haoran met Huo Jianning in the Chairman's office at Qingzhou Cement Company. Huo Jianning was dressed sharply in a formal suit, looking very professional. Besides Lin Haoran and Huo Jianning, General Manager Burton was also present.
"Mr. Huo, let me introduce you," Lin Haoran said. "This is Mr. Burton, our General Manager here at Qingzhou Cement Company. He is an excellent corporate manager — you can learn much from his experience."
Burton already knew about Huo Jianning's situation after Lin Haoran received his call earlier, so there was no need for much explanation. After exchanging greetings, Burton explained the current operations at Qingzhou Cement.
Huo Jianning was astonished to learn that Qingzhou Cement had already embarked on international expansion, successfully entering markets in the Philippines, Singapore, and Malaysia. Growing up in Hong Kong, he had always known the Qingzhou brand — it dominated Hong Kong and Macau — but he never imagined Qingzhou Cement would make inroads into Southeast Asia, where local brands were strong.
Hearing the company's profitability figures — tens of millions annually — shocked him even more. How could such a profitable company have a stock market value of barely 200 million Hong Kong dollars? It was clearly undervalued! Other companies earning similar profits were valued at 400 million or more.
Seeing the surprise on Huo Jianning's face, Burton smiled and explained, "In the past, Qingzhou Cement only made about 10 to 15 million Hong Kong dollars a year. Profits skyrocketed after our new Chairman, Mr. Lin, took over."
Naturally, he didn't explain that previous chairmen had siphoned off company profits for "investments." There was no need to expose that.
Huo Jianning also shared his thoughts and quickly impressed Burton with his insights. Clearly, this young man had genuine talent. Even though he was personally invited by the Chairman, without real ability, he wouldn't survive here long. It was important to gain recognition from his colleagues.
Seeing Huo Jianning's performance, Lin Haoran was very pleased. While Burton and Huo Jianning discussed the company's operations, Lin Haoran called HR to prepare two employment contracts. Salary-wise, it would match the previous CFO's package.
Since Huo Jianning lacked corporate management experience, Lin Haoran arranged for him to shadow the current Deputy CFO for one month to learn the company's systems. After that, he would formally take over.
When Huo Jianning signed the contract, Lin Haoran noticed his loyalty rating immediately jumped to 85. While not the highest among his employees, it was certainly a very strong starting point — especially after only two meetings.
This loyalty demonstrated Huo Jianning's serious attitude toward his career. With Huo Jianning now officially part of the team, Lin Haoran instructed Burton to focus on nurturing him. Although Huo Jianning had immense potential, he was still young and inexperienced. Qingzhou Cement would serve as a training ground.
With another future key figure secured, Lin Haoran felt even more satisfied. He knew it would take two or three years for Huo Jianning to mature. Talented though he was, he lacked practical corporate management experience for now.
Time flew, and soon a week had passed. It was now July 17.
Hong Kong's economic development remained stable, and there was little that required Lin Haoran's personal attention. Gold prices were also behaving exactly as he had predicted — rising steadily every day.
Since his return from the United States, a month had passed. Only three days saw minor dips, and each time, the price rebounded sharply the next day. In just one month, gold had surged from 250 to 320 U.S. dollars per ounce.
However, Lin Haoran knew this pace was still "slow." By the end of the year, gold prices would truly go crazy. Every now and then, his brokers at Citibank would suggest he cash out, but Lin Haoran ignored them. He had full confidence that gold prices would continue to soar until January next year.
As the renovation work on his Severn Road villa continued, Lin Haoran temporarily continued living at the family's Deep Water Bay villa. He only visited his Heng Fung Building apartment occasionally when meeting Guan Jiahui. Otherwise, he rarely stayed there.
On the morning of July 17, after breakfast at the Deep Water Bay villa, Lin Haoran instructed Li Weiguo to drive him to Wan'an Group Tower.
Now, both Wan'an Group and Qingzhou Cement required little direct supervision. Unlike his father, Lin Wanan, who micromanaged everything, Lin Haoran delegated authority. At Wan'an Group, General Manager Yang Mingyi handled daily operations; at Qingzhou Cement, it was Burton.
As for Aimeigao Company, Lin Haoran simply had to wait for the dividend payouts. He fully trusted Liu Luanxiong's management abilities. In his previous life, Liu Luanxiong's rise in the business world had been so smooth, it seemed almost as if he had been blessed with supernatural luck. Since Lin Haoran had hitched himself to that rising star, letting Liu Luanxiong help him make money, there was no need for him to worry.
Upon arriving at Wan'an Group Tower, Lin Haoran headed straight to Huanyu Investment Company's office. Earlier that morning, around nine o'clock, he had received a phone call from Su Zhixue, telling him that there was a piece of news that might interest him.
"Boss," everyone greeted as Lin Haoran entered the office.
Lin Haoran nodded and called Su Zhixue over, heading into the general manager's office.
"How's the situation with Hongkong Electric Group?" Lin Haoran asked.
He had ordered Huanyu Investment to quietly accumulate Hongkong Electric Group's shares about a month ago. Every so often, he would check in on the progress.
"The stock performance of Hongkong Electric Group has been quite steady. Trading volume is good, though not as high as the property sector stocks.
Up until yesterday, we have acquired 47.9 million shares, with a total expenditure of 115.53 million Hong Kong dollars, averaging about 2.412 dollars per share. Hongkong Electric has issued 630 million shares in total, so its share price isn't very high.
Currently, the market price fluctuates between 2.4 and 2.5 Hong Kong dollars per share. Compared to when we first started accumulating, prices have risen slightly.
To avoid stirring the market, we've been absorbing shares cautiously — slow but steady. So far, no one has noticed our movements, and Hongkong Electric's stock price hasn't been pushed up," Su Zhixue reported in detail.
As for Wan'an Group's share acquisition, there was no need to report further. Their holdings had already surpassed 90%, and they had filed for delisting from the Hong Kong Stock Exchange. Huanyu Investment had ceased absorbing more Wan'an Group shares, with the final stages handled by Wardley Company under HSBC.
Lin Haoran nodded. In one month, acquiring nearly 50 million shares while operating cautiously was already an excellent result. Based on the total 630 million shares issued, he now secretly controlled 7.6% of Hongkong Electric Group.
According to the latest shareholder reports, he had already surpassed the previous second-largest shareholder, making him, in the shadows, Hongkong Electric's true second-largest shareholder.
As for the top shareholder, he was close to surpassing them as well — they only held 8.4%. Lin Haoran had investigated all of this beforehand.
In other words, with just a few more days, Huanyu Investment would likely surpass the current largest shareholder, making Lin Haoran the real top shareholder.
The bull market had definitely helped. With trading volume soaring across the market, Huanyu Investment's discreet accumulation blended easily among the frenzy of trades.
"And the news you mentioned on the phone — the one you said I might find interesting — what is it?" Lin Haoran asked.
"Boss, here's the thing," Su Zhixue quickly replied. "We picked up an insider tip that Mr. Percy, the current second-largest shareholder of Hongkong Electric Group, is considering selling his stake. Apparently, he wants to cash out while the Hong Kong market is booming.
This rumor is starting to circulate in small circles. I heard it from a Western trader at the Stock Exchange that we often work with. However, it seems Mr. Percy wants to sell at 10% above the current market price, which is why no major British consortia are interested — they'd rather accumulate slowly in the market."
Su Zhixue continued, "Also, British investors typically prefer selling to other British consortia rather than to Chinese businessmen. So while I think this information is credible, you'll need higher-level channels to verify it."
Gathering intelligence was part of their daily operations — blind trading was a cardinal sin for an investment company.
Hearing this, Lin Haoran's eyes lit up. This was good news.
Although he didn't yet have the full power to control Hongkong Electric, increasing his holdings now would greatly strengthen his future operations. When his funds were fully ready, he could move decisively to seize control.
"Good job. Leave this to me now. Keep focusing on your work," Lin Haoran said, smiling.
If not for Su Zhixue's attentiveness, he might have missed this rare opportunity. Regardless of whether the rumor was true, Lin Haoran had to investigate.
Even if British investors generally looked down on Chinese businessmen and were reluctant to sell to them, the times were changing. British capital was declining, and Chinese capital was rising — a trend that could no longer be reversed.
For now, few major powers were eyeing Hongkong Electric Group. Jardine Matheson and Hongkong Land wouldn't move unless they lost the battle over Wharf Holdings — and that struggle was still ongoing. Even if they had an interest in Hongkong Electric, they didn't have the capacity to fight on two fronts simultaneously.
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