Lin BaoCheng did not stay long at Asia Television.
After leaving ATV, he immediately went to Hutchison Whampoa.
At his office, he asked Qin Lan to summon Wei Li and Cheng YuFeng.
"How has the company developed in the months I've been away?"
Although Wei Li reported to Lin in Los Angeles at least every two weeks, and Cheng occasionally did as well, the latest update had been over a week ago.
Wei Li began: "According to your instructions, the company has basically completed its streamlining. We now have just over seventy subsidiaries, operating in real estate, construction, import‑export trade, wholesale and retail, pharmaceuticals, hotels, container storage, transportation, shipyards, and mining."
"All shares in the listed company Harbor Engineering have been sold. Some employees willing to return to Hutchison Whampoa were reassigned to other posts. The sale brought in liquidity, and the annual investment in Harbor Engineering is now saved."
"The company's main focus is now real estate and wholesale retail. In real estate, we are developing an office tower, a residential housing estate, a hotel, and fifteen villas. The hotel will be self‑operated once completed."
"As for wholesale retail, the listed company Watsons is the main vehicle. I'll let Vice President Cheng report on that."
Lin didn't look at Cheng immediately. Instead, he told Wei Li: "For the office tower and housing, adopt a rent‑only model. Collect rent pegged to market rates. This will be costly at first, but profits from other sectors can be invested into real estate and retail, especially real estate. Once returns come in, the company won't lack funds."
"And those fifteen villas — don't sell them. I'll buy them all."
Lin intended to use the villas partly for personal purposes, partly for tax avoidance. Though Hong Kong's tax system differed from America's, there were still methods. He had consulted professional accountants last year.
Moreover, since he owned half of Hutchison Whampoa, buying villas meant he effectively paid only half. Even if left idle, they would appreciate.
"Yes, Mr. Lin. I'll note that," Wei Li said, knowing Lin had no shortage of funds.
"Tell me about Watsons," Lin said, turning to Cheng.
Cheng reported: "Watsons is one of our listed companies. Originally, we held less than 30%. You instructed Watsons to expand retail, building supermarkets like Walmart. But Watsons lacked capital. So the company arranged a targeted share issue to us, raising our stake to 49.9%. The funds were used to build supermarkets."
"One supermarket is already operating. Revenue is good, but profits are low. We'll refine operations to raise margins, then expand. After Hong Kong, we'll move into nearby regions."
"Well done. Expansion mustn't be rushed, or mistakes will happen," Lin said approvingly. "Next, find a way to buy back the remaining shares at low cost. Take Watsons private. Once the company reaches scale, consider relisting."
"Understood, Mr. Lin," Cheng replied, noting it carefully.
Lin said: "If there's nothing else, bring me reports on all subsidiaries."
"There is one more matter," Wei Li added. "HSBC submitted a 10% stake to the board in May, gaining a director's seat. Since then, they've twice increased by 1%. Three days ago, they added another 1%. They now hold 13%, making them the second‑largest shareholder after you."
"They increased again?!" Lin frowned. He had agreed with Shen Zhou that HSBC could hold 10%, but not more. Clearly Shen had overstepped. Now HSBC held 13%. And who knew if they had undisclosed shares beyond that.
"Have you contacted Shen Zhou? What did he say?" Lin asked.
Wei Li nodded: "Two days ago, I relayed concerns through Director Yuan TianFan. Shen said HSBC simply believes in the company's prospects, so they increased their stake."
Cheng added: "Mr. Lin, you hold 49.9%. No matter HSBC's intentions, no one can threaten your control."
"I know," Lin said. He wasn't worried about losing control. But he wanted to know why HSBC kept buying, and why Shen had gone back on his word.
"Looks like I'll need to speak to Shen directly," Lin thought. He decided to ask him outright.
Aloud, he said: "I'll handle this. As long as HSBC doesn't interfere in operations or obstruct the company, leave it be for now."
As majority shareholder, Lin could easily suppress smaller ones. But HSBC was a giant in Hong Kong. Better not to provoke them unnecessarily.
Wei Li and Cheng left. Soon, Wei Li's secretary delivered a stack of reports, which Qin Lan passed to Lin.
Lin studied them carefully, deepening his understanding of Hutchison Whampoa's subsidiaries. Even if he didn't manage daily affairs, he had to know the company thoroughly. Only then could he avoid being misled.
No one was deceiving him now, but if he did nothing and stayed ignorant, he would invite trouble. He intended to eliminate that possibility in advance, giving no one the chance.