On Monday, Lin BaoCheng went to Victory Securities.
The firm had expanded considerably, now employing sixty to seventy staff.
Lin summoned An Yuan to his office. Instead of immediately giving instructions, he asked for a report on the company's current situation.
An Yuan explained:
"The company's operations are divided into three parts. First, the two companies' stocks you instructed us to buy — we don't trade them, just accumulate steadily. Second, normal trading — buying stocks we believe have growth potential, selling when they peak. Third, the Victory Fund, which is capital raised from investors."
"Regarding the Victory Fund, we raised HK$18 million. As per your orders, we leveraged ten times to go long on gold futures, and have left it untouched since."
In this era, funds faced few restrictions, so Lin dared such moves. Otherwise, he would have had to carefully select target companies.
"Next, the two companies you directed us to buy: Green Island Cement and Hongkong Electric. We've acquired 11.3% and 12.1% respectively. Because we buy small amounts daily, we haven't been noticed, and their share prices haven't risen much."
Previously, Lin had asked Cheng YuFeng to investigate Hong Kong companies with large undeveloped land holdings but low market value. He chose Green Island Cement and Hongkong Electric.
Lin's plan was to secretly accumulate shares, then acquire the companies. Developing their land would greatly increase value, yielding huge profits.
Moreover, Green Island Cement was a cement producer, Hongkong Electric a power company. Both businesses complemented property development. Acquiring them offered multiple advantages.
Other companies also held large land reserves, such as Wheelock. But Wheelock's market value was high, and its property business strong. Acquiring it would cost HK$1–2 billion, so Lin abandoned the idea.
Smaller companies existed too, but Lin decided against spreading his capital too thin. Two targets were enough.
"Finally, the third part: about HK$100 million in trading capital. Current paper profits are around HK$20 million. Most funds are already invested."
Of this, HK$50 million was earmarked for year‑end taxes, temporarily used for trading. So in reality, only HK$50 million was freely available.
Lin hadn't injected more because he wasn't satisfied with An Yuan's team's abilities. He didn't trust them with larger sums.
Operations like the gold futures trade were entirely Lin's orders. An Yuan merely executed, acting as a tool.
Until Lin found a more capable investor, he wouldn't allocate more capital.
After hearing the report, Lin gained a clearer picture of Victory Securities. He already knew the general situation from periodic reports, previously prepared by Cheng YuFeng and delivered by Qin Lan.
"An Yuan, do you know Wharf's current share price?" Lin asked. He hadn't followed it, since he no longer planned to acquire the company.
"Last Friday's close was HK$21.58," An Yuan replied instantly. "Since retreating from over HK$30 earlier this year, it's fallen more than 30%."
Impressed by his quick, detailed answer, Lin asked:
"You know this so well — have you been buying Wharf shares too?"
"Yes," An Yuan admitted. "Wharf's surge was due to the Shipping King seeking control, while Jardine resisted. Their battle pushed the price above HK$30. Later, after they reached an agreement, the price fell, even below HK$20. Our investment team discussed it. We believe the takeover battle isn't over. The Shipping King will likely increase his stake again. So long‑term, the stock should rise. We invested HK$10 million when it dipped below HK$20."
"Then I can tell you now — you made the right move," Lin smiled, pleased with their judgment. "Today I'll transfer HK$300 million. Use it to buy Wharf shares. Start small, quietly, so Jardine doesn't notice. Later, if secrecy fails, we'll adapt."
"Mr. Lin, you're not planning to acquire Wharf, are you?" An Yuan asked, shocked. "Most shares are held by the Shipping King and Jardine. You can't surpass them. Even if you could, the cost would be astronomical. Wharf isn't worth it."
"Don't worry. I know what I'm doing. Just follow my instructions," Lin said, not revealing the true reason. If word spread, he couldn't explain to Bao YuGang.
"Understood. Once funds arrive, we'll begin gradual purchases," An Yuan agreed. Lin was the boss, after all.
Lin reminded him:
"Unlike Green Island Cement and Hongkong Electric, Wharf shares can be bought more aggressively. Focus on quantity."
"Yes, Mr. Lin!" An Yuan replied. He suspected Lin wasn't aiming to acquire Wharf, but rather to push up its price and profit.
Lin didn't linger at Victory Securities. Soon after, he contacted his sister Lin ShuFang, arranging for HK$300 million to be transferred from Galaxy Games' account to Victory's.
Galaxy Games was flush with cash. Donkey Kong had generated huge profits, and with Hong Kong Blocks and Pac‑Man sales, the company's monthly revenue exceeded many listed firms' annual earnings.