Old Madden was hosting a banquet for HSBC Vice Chairman John Pao. He had always been wary of Lin Zhichao's rise. Thinking of the 'bet' between the two, he had a mentality of paying attention to the growth of global shipping.
Recently, he has received some information, all of which say that Global Shipping has become the leader of Chinese shipping companies, and Lin Zhichao has surpassed Xu Aizhou to become the Chinese "new shipping king".
This shocked him very much!
It is obviously unimaginable that a person who has been in the shipping business for less than two years has developed to the size of Hui Aizhou's fleet. It can also be inferred that if this trend continues, Global Shipping will surpass Wheelock Shipping.
very likely to be.
Is he going to lose?
Of course Old Madden was not willing to give in.
Lin Zhichao once stood in front of him, and he looked at Lin Zhichao with the same eyes as a beggar. How could he now admit that the beggar would surpass him, or be on an equal footing with him!
Through a general understanding, Old Madden knew that Lin Zhichao had a backend at HSBC, that is, Sandus, the deputy manager of import and export, and had obtained a loan from HSBC.
For a moment, Old Madden just wanted to ask, 'Why?'
So he invited John Bao, a senior executive of HSBC whom he knew, to understand the matter and make plans.
"Vice Chairman John Bao, Deputy Manager of HSBC Sandus, can you decide on the loan?" Old Madden asked.
John Bao looked at Old Madden and said formally: "He is the deputy manager of import and export. He is mainly responsible for bill advance and other business. Loan matters are the matter of the project department. Of course, things may not be absolute."
Although he knew that Sandus was already the manager of the Mainland Project Department, he naturally would not reveal the information to outsiders. This was an internal secret. What's more, he and Old Madden were only casual acquaintances, so why should he tell him these things so as to curry favor in advance?
Sandus?
Old Madden immediately said: "So, Deputy Manager Sandus cannot decide to provide loans to the shipping industry?"
John Bao looked at Old Madden questioningly, thinking to himself, you are not mistaken!
"Mr. Madden, there are too many mistakes in your sentence. First, Sandus is an importer and exporter and is not responsible for loans; second, HSBC will not lend money to the shipping industry. This is a black book in the industry."
Old Madden smiled and then said: "I actually know this too. But I heard that HSBC loaned a large amount to Global Shipping, which is a Chinese shipping company. That's why I came to you for consultation. If possible,
We also hope to obtain a loan from HSBC."
John Bao suddenly froze, and then said: "This is impossible! I need to find out, but HSBC will not give a loan to your shipping company, at least I will not agree."
Old Madden smiled and said: "That's strange, why the Chinese can get it but I can't. Is HSBC a bank run by Chinese?"
John Bao said unhappily: "Mr. Madden, our bank only looks at risk and nothing else. As for what you said, I'll find out more about it later!"
Old Madden immediately ignored it and started talking to John Bao about other things. He knew that no matter what the outcome of the matter, he could at least find out through John Bao whether Lin Zhichao had received support from HSBC. If HSBC checked the accounts, even
This loan can be questioned. Not only will global shipping be in trouble, but Lin Zhichao's backer, Sandus, may also be in trouble.
He and Lin Zhichao have not clashed once or twice. This time he must win!
At the high-level meeting of HSBC, John Bao took the opportunity to ask: "Manager Charlie, does your project department have a shipping loan of US$300, and the borrower is still Chinese?"
For a time, many HSBC senior executives looked at Charlie, the project manager, in surprise, asking for explanations.
Charlie had a guilty conscience about this loan, and he would not have agreed to it if it had not been for Sandus' guarantee.
So, he quickly carried out Sandus.
"That's it! The boss of Global Shipping is a Chinese named Lin Zhichao. I believe everyone has heard of it. He is the boss of Yangtze Real Estate and Cheung Kong Industries. He is a young man with great potential. And his Global Shipping is from HSBC.
Before the loan, we already owned four 10,000-ton cargo ships and had no debt."
"Of course, this situation is not enough for me to decide to lend him a loan. The real reasons are: First, he leased three ships to a Japanese shipping company for a five-year lease, and he can get 3 million US dollars in each of the first three years.
With the rent, theoretically the profit can reach about 2 million US dollars a year."
"Second, he obtained a letter of credit from the Bank of Japan, and the Bank of Japan guaranteed that the contract was guaranteed."
"Third, this loan was discovered by Sandus, who also guaranteed and facilitated it. When Lin Zhichao first entered the shipping industry, Sandus gave him enough praise and said that his business was stable."
After Charlie finished speaking, a group of senior executives looked at each other and talked about it. Obviously, the loans from the shipping industry surprised them very much.
John Bao asked again: "Shipping is called a 'black book' by banks because the sea is ruthless. No matter how stable you say it is, it may be swallowed by the sea."
His remarks were supported by some people, so everyone criticized Charlie for not granting this loan.
Charlie was immediately upset!
Fortunately, half of the senior management did not say anything. They were thinking about the reliability of this loan.
Finally, it was HSBC Chairman Douglas who said: "Go and see if Manager Sandus is in the company and ask him to come."
"Okay, Mr. Chairman."
After a while, Sandus walked into the conference room, then sat next to Saipan, the import and export manager, and attended the meeting.
Douglas then said: "Manager Sandus, please tell me what is the situation of Global Shipping and why is it worth risking your future to guarantee and support it?"
Sandus nodded. He had already appointed a project manager. In the eyes of senior management, he still had this status.
Later, he confessed and analyzed the situation of Global Shipping one by one, and made no secret of his admiration for Lin Zhichao's management methods. Soon, the HSBC conference room was silent.
"Today, Global Shipping has a load capacity of 128,000 tons, and a total of 12 large ships of about 10,000 tons. They have 10 captains leased to Japan's two major shipping companies - Yamaguchi Steamship and Nippon Steamship. Only these 10 ships each
The monthly rent is as high as about US$750,000. So there is no problem in repaying the loan, not to mention the letter of credit issued by the Bank of Japan, and the risk is shared by the Bank of Japan, Kobe."
In the conference room, everyone was impressed by the strength and steady development of Global Shipping, and there were few objections.
At this time, John Bao was the one who proposed it, so he naturally wanted to deal with the aftermath.
So, he said: "Since it has become a fact, the accounting department should be sent to audit Global Shipping's finances to determine its risks and then discuss it in the company."
What he said was very procedural, and it didn't give people the feeling of looking for trouble.
Douglas nodded and said: "It should be so! To be honest, I am very interested in global shipping. If the risk is really low, then this global shipping is worthy of our support. After all, as far as I know, other ship owners are There is no such long-term rental operation, and because of this, they cannot be trusted by banks."
A senior executive said: "No matter what, shipping is still a black book of banks, and we must treat it with caution in the future."
His views were immediately agreed upon by most senior executives, including Douglas and John Bowen.
The next day, Lin Zhichao received the audit team of HSBC Bank and handed over all the account books to them.
If shipping wants to develop, it must be supported by banks. In the previous life, the chartering king had the support of HSBC, Dong Haoyun had the support of the United States and Taiwan, and Zhao Congyan and Cao Wenjin also had the support of the Bank of Japan and shipyards.
Otherwise, if you want to develop shipping with your own funds, it will undoubtedly be a small effort.
The audit team was led by John Bao, Vice Chairman of HSBC Bank. Lin Zhichao didn't know it yet, but John Bao was involved in all of this. Fortunately, John Bao was just doing business and had nothing to do to make things difficult for Lin Zhichao.
What's more, the audit team was stunned!
Even John Bao was shocked and said: "Mr. Lin, your profits in February and March reached more than 700,000 US dollars?"
Lin Zhichao nodded and said, "That's right! Although we signed a long-term contract, the price is very high because the market is very good."
In fact, Lin Zhichao discovered a problem. When shipping prices rise, the corresponding cost rate also decreases greatly. Because the costs are mainly fuel, maintenance, ports, labor, etc., these do not fluctuate much.
The monthly rent for a 36,000-ton cargo ship is about US$250,000, but the monthly expense is only US$50,000, so the gross profit is US$200,000.
Of course, this gross profit is not the final profit. Some major repairs or accidents may occur during the process, and part of it will be deducted. However, as long as it is managed properly, renting three or four boats (a group) for a year of 3 million US dollars, Lin Zhichao feels The profit of 2 million to 2.4 million US dollars is still about the same, that is, the return on capital (second-hand ship) is one year. This is a return rate that can only be achieved in several years when the market is very good.
Later, John Bao said: "Your debt is 4.7 million U.S. dollars, plus one or two years of interest of 900,000 U.S. dollars, which is almost 5.6 million U.S. dollars. So theoretically, you can repay it in eight months. It is incredible. Got it!"
Lin Zhichao smiled and said: “I wonder what Chairman John Bao’s assessment of Global Shipping is?”
John Bao responded with a smile: "This needs to be discussed by the senior management of HSBC, but I am very optimistic about it. Of course, it is limited to your current loan situation."
He still had reservations and was cautious about shipping loans, so he kept things official.
Lin Zhichao nodded, as long as he had no objection to himself.
The US$3 million loan HSBC loaned him was repaid in two years, with an interest rate of 12% per year, which is almost US$700,000 in interest. The US$2 million in installments was paid in one-year installments, and the interest was approximately US$200,000. arrive.
In fact, if the rent for September is collected, it can be paid off in full.
Of course, this is just a theory. Whether the bank loan is due or not, why pay it back in advance?
Therefore, probably in the second half of the year, Lin Zhichao will be ready to consider expanding the fleet.
The audit team made a work report to the senior management of HSBC Bank, and Sandus also attended this high-level meeting.
Undoubtedly, the audit team's report is very beneficial to Global Shipping.
For a while, the senior executives of HSBC began to ponder. This was different from the shipping industry they had imagined.
Douglas nodded, and then said to Sandus: "Manager Sandus, tell me how you were persuaded by that young man?"
Sandus nodded, he knew that this was his capital, as long as he passed the test today.
"This young man has fully studied the psychology of bankers. He believes that our fear of shipping comes from risks. So he chose long-term leasing, so that we bankers can see stability. This alone is
Other shipping companies have advantages that they don’t have.”
Everyone nodded, it was indeed true.
Douglas said: "Everyone looks at the high returns in front of them, so how can they make long-term plans? As everyone knows, you can also make a lot of money in the long term, and you can also close the shipping window."
Then, Sandus added: "Secondly, I don't know how he convinced Japanese merchants and banks to issue the letter of credit from Kobe Bank. But this letter of credit is undoubtedly very critical, so I decided to convince Charlie for him.
manager."
Everyone was also very curious, but they didn't know when they saw Sang Da Shi, so they had no choice but to give up.
A letter of credit is not issued casually. When Kobe Bank issues this letter of credit, it is obliged to guarantee Yamaguchi Steamship's ability to pay the rent; once Yamaguchi Steamship goes bankrupt, Kobe Bank will be required to pay the rent and liquidated damages. (PS: Later Japan
The collapse and crisis of shipping companies meant that the Bank of Japan came to Hong Kong to make financial commitments, avoiding losses to Hong Kong shipowners and restoring the credibility of Japanese shipping.)
Douglas said: "I think he may have gained the trust of Japanese merchants, and when the Japanese saw that he was renting for a long time and there was a shortage of ships, they sold out this reputation."
Everyone thought it was reasonable and thought it was just an advertisement.
In fact, everyone does not know that Yamashita Tatsuro was moved by Lin Zhichao's sincerity when he saw that Lin Zhichao did not even ask for the insurance premium. As for the Kobe Bank, its manager only agreed to open it after Yamashita Tatsuro's persuasion and Lin Zhichao's guarantee.
Finally, Douglas said: "Okay! There is no problem with this loan. You can relax and take it seriously. After all, this amount is not small."
Project manager Charlie breathed a sigh of relief. He was about to retire and didn't want anything to go wrong.
As for the loan of three million US dollars, the manager of his project department naturally has full authority to make the decision.
Over the weekend, Lin Zhichao invited Sandus to play golf together and asked HSBC executives for their assessment of global shipping.
His goal is to complete the feat of 200,000 tons of deadweight in the second half of the year. To reach this goal, Global Shipping still needs to purchase a ship with a deadweight of 70,000 to 80,000 tons, which requires about US$5 million in funds.
Fanling Golf Course.
After Lin Zhichao arrived, he happened to see Old Madden, John Bao, and Sandus standing and chatting together, and immediately greeted them.
"Mr. Madden, I didn't expect to meet you again!" Lin Zhichao said calmly.
At this time, he did not know that Madden Sr. had almost made TCL become the "abandoned object" of HSBC's senior management.
As for the competition ahead, Lin Zhichao doesn't care, not to mention he is the winner.
Old Madden saw Lin Zhichao coming and knew that Lin Zhichao had found a backer like Sandus, but he didn't understand why Sandus had the right to give Lin Zhichao a loan?
"Mr. Lin, congratulations on getting a loan from HSBC. This makes HSBC break the industry's black record!"
There was no change in the faces of John Bao and Sandus, they looked like they were watching a good show.
Lin Zhichao smiled and said: "No, I don't have such a big reputation. Naturally, I have a very reputable collateral. I believe that if Mr. Madden proposes it, maybe HSBC will consider it."
Old Madden was dubious, and then he had no intention of talking nonsense with Lin Zhichao, and walked to the golf course with John Bao.
Sandus looked at the back of old Madden and said to Lin Zhichao: "Have you ever had any trouble with Madden?"
Lin Zhichao smiled and said: "If you are willing to listen to some small things, I will tell you in detail later!"
Sandus nodded, and then he and Lin Zhichao walked inside the club. He has been gaining a lot of points among the senior management of HSBC recently. Many senior executives believe that he has discovered a very powerful businessman this time. He has already been in the project department before taking up the post.
Make a contribution.
The other side.
John Bao and Madden Lao sat together, and Madden Lao immediately asked: "Chairman John Pao, if I want a loan from HSBC to purchase a ship, will it really go through? Could it be that HSBC has already decided to invest in shipping?"
John Bao shook his head without hesitation and said: "No matter what, we at HSBC still insist on not giving shipping loans, not even to Mr. Madden. Unless your collateral is not a shipping asset."
Old Madden's expression suddenly changed and he asked again: "Then why did you give the Chinese a loan?"
John Bao could only say: "He is different. He leased the captain to a Japanese shipping company. The lease period of a ship is at least three years; moreover, a Japanese bank issued a letter of credit for him; in addition, Sanda
The manager used his own future as a guarantee, and for various reasons, HSBC loaned money to Global Shipping."
Old Madden was stunned. He could not fulfill any of the three conditions.
After signing the contract for three years, wouldn't the profits be greatly reduced? Why would the Bank of Japan open a letter of credit to him? This is simply impossible; not to mention that there was no senior executive of HSBC to guarantee his future, and he and John Bao were just casual acquaintances.
"How many ships does Global Shipping have?"
"A lot, I can only tell you this! By the way, does Mr. Madden have anything to do with Mr. Lin?"
When Old Madden heard "many", he knew that Global Shipping might really have many ships. Could it be that it was 70,000 to 80,000 tons?
This is too fast!
"No big deal! It's just that this young man is very arrogant. He once boasted in front of me that he would surpass Wheelock's fleet within ten years. I thought it was a little funny!"
John Bao said seriously: "I'm afraid it won't take ten years! Maybe five years will be enough!"
"What? Chairman John Bao, are you kidding me?"
John Bao said with a smile: "Haha, maybe it's a joke! But there are really many benefits to leasing with Japan for a long time, which helps reduce risks."
Old Madden didn't know what to say for a while. This John Bao respected long-term contracts so much. It was obvious that Lin Zhichao had gained the trust of HSBC by virtue of this.
Next, Old Madden tried many times, but John Bao only revealed some general information; as for Old Madden's request for a loan, John Bao refused.
Obviously, HSBC treats them differently.
Old Madden knows that if Lin Zhichao joins HSBC, he will surpass Wheelock. It is not an empty talk.
John Bao finally said with a smile: "Actually, we are not really supporting Global Shipping, it is just a normal form of loan. Their collateral is very stable, so we will lend money. Long-term leasing is part of the stability, Mr. Madden can learn from it."
Learn from others.”
Old Madden could only say: "Okay! Maybe, he is really good, I admit it!"
Although he admitted that Lin Zhichao had gained the trust of HSBC by relying on long-term leasing, it did not mean that he would choose long-term leasing. Now that one trip is so profitable, why should he rent it for a long time at 75%, not to mention that if it is rented to the mainland, the shipping price
higher.
Before leaving, the two groups of people happened to bump into each other again.
Old Madden saw that Lin Zhichao's expression had changed, because he had received a certain signal that Lin Zhichao's fleet was already very large.
After greeting everyone who saw them, everyone dispersed.
On the way, Lin Zhichao thought about old Madden's attitude and knew that he had used his strength to win the respect of others.
Madden may not necessarily know how many ships he owns, but he must have understood that he owns many ships and is backed by HSBC.
In this way, there will be a lot less trouble in the future.
Of course, in business, competition is still necessary.