On Tuesday morning, the stock market opened higher. The financial banking, real estate, and retail sectors that were strong yesterday were still strong. Today, the shipping sector and textile and clothing sector, which have been in the doldrums for a long time, also rose strongly.
Huangpu Shipping Group has become the leader in the shipping sector. It surged nearly 20% in half an hour after the market opened, and its market value directly exceeded 13 billion Hong Kong dollars, setting a new high for the group's market value.
Li Jianhui has no intention of paying attention to the situation in the stock market. Anyway, the market value of these companies does not affect the company's dividends, but what he is concerned about is how much he can get.
This year is different from previous years. In order to have some balance in their hands, this year major companies will have to use the excess funds of listed companies in the form of dividends after making expansion plans. If it is a wholly-owned company, the excess funds will be directly transferred to the Xinhui Fund account.
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And he went to Huihong Group specifically today. Firstly, he planned the group's hot money research and development projects this year, and secondly, he looked at the group's annual financial statements last year and decided to distribute dividend funds.
As a game industry elite that Li Jianhui personally invited back from Japan, Toru Iwatani is extremely outstanding. He is not only talented in game research and development, but also outstanding in business management.
Over the past year, Huihong Game Group has achieved very good development under his leadership. Especially last year's two games, Contra and Twelve Street Fighter, were welcomed by countless game fans, and their sales in arcades increased.
It surpasses Pac-Man, Bee and Tank Battle, and even Super Mario cannot compete with it.
Especially Street Fighter Twelve, because it has entered the heyday of the arcade industry, and the sales of this arcade machine have exceeded 300,000 units, which is something Super Mario has never achieved in arcade machines.
I don’t know about other places, but there is no arcade in Xiangjiang that does not have the game Twelve Street Fighter.
Also because of the hot sales of these two games, several other games also have good sales, coupled with the continuous efforts in the home game console business, Huihong Group achieved very gratifying results last year, coupled with the appreciation of some fixed assets,
Its profit is close to HK$3 billion.
However, Li Jianhui also knows that the glory of arcade machines will not last for a few years, and the focus will gradually shift to home game consoles.
The real rise of Huihong Group will come in the era of online games. Li Jianhui has already planned for Huihong Group to follow the path of TX in the previous life, which is chat software. He also plans to let Huihong Group do it so that Huihong Group can continue to maintain its competitiveness.
At the meeting, Li Jianhui told the group's senior management: "Excluding some additional taxes and fees, our group's account funds should be 1.8 billion Hong Kong dollars. The group will use 1.5 billion Hong Kong dollars as dividends this time, and the remaining funds will be used for the group's subsequent operations."
Seeing that Li Jianhui actually used so much cash as dividends this time, Sun Zhigang, the vice president in charge of the group's finances, immediately said: "Li Sheng, is this dividend too much? You also know that the construction of Huihong Building needs to continue.
In addition, our group also intends to increase the layout of direct-operated stores this year. We plan to own the property rights of these direct-operated stores, which will consume a lot of money. Please see if you can leave a little more development funds for our group."
Li Jianhui is very clear about the plans of the group's top management. Initially, he allowed these companies to establish direct-operated stores in some areas, and more importantly, let them become local distributors, which will help the group's products to be sold locally.
These senior executives actually took the opportunity to expand their power, imitating the layout of Jingyi Electrical Appliances and Hongyu Clothing, and also bought out the property rights of stores as much as possible. This was obviously using chicken feathers as arrows to wait for opportunities to enter the real estate industry and take advantage of multiple real estate properties.
Add value to increase group profits.
He has always been very clear about the ambitions of the senior management of Huihong Group. This time, allocating so much funds as dividends also prevents these senior executives from spending too much money thinking about expanding into other industries all day long.
"This matter has been decided, and the layout of some of your direct stores will also need to be adjusted. You must understand that Huihong Group's main business is game research and development, and channels can be established, but we are not establishing terminal channels, and this kind of store opening
Too much is just a burden to us.
This year you must make adjustments to me in this regard. In principle, you will only build a large-scale direct-operated store in cities with a population of more than 500,000. It will mainly promote our products and transfer everything else to me."
Although these senior officials were reluctant, but unfortunately their arms could not twist their thighs, they had no choice but to follow Li Jianhui's decision.
They also know that in less than two years, the Xinjian Department and even the largest listed company in Hong Kong will give way.
They are very aware of the potential of Lane Crawford, which is even the most underestimated among the Xinjian listed companies.
The market value of the other party has exceeded HK$30 billion today. With its expansion momentum and strong profitability, it is only a matter of time before it surpasses them.
As a subsidiary of the Xinjian Department, Lane Crawford also has no loans from banks, and the other party basically presses suppliers for three months, making it quite wealthy, although the other party cannot directly manipulate the money to enter the industry.
The value of the stock market increases, but the other party can entrust the Securities Department of Xinjian Bank to manipulate it.
The most important thing is that because the other party is in the process of rapid expansion, Li Jianhui will not allow it to pay dividends on a large scale, which will naturally allow it to grow its assets rapidly.
Seeing that these senior executives were not very interested, Li Jianhui said: "I know some of your thoughts. I have clear plans for the future development of Huihong Group. The future Huihong Group will definitely be one of my companies with the highest market value."
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Just because the time to enter a new industry is not yet ripe, I hope you will be patient for the time being.
I already own enough real estate companies, so Huihong Group shouldn’t think about entering anymore. If you have the energy, you might as well develop a few more best-selling games.”
As the president of the group, Toru Iwatani was in a dilemma between Li Jianhui and the group's senior executives. He knew very well that these senior executives were very unwilling to give up.
I think Huihong Group is a company started by Li Jianhui. Not to mention becoming a top holding group company, but it should be like Jiayi, Jingyi Electrical Appliances, and Hongyu Clothing. At least it can grasp the upstream and downstream industry chains.
As a result, due to Huaxin Technology Group, their development path to the upstream industry chain was directly cut off.
We originally hoped to develop into the downstream industry chain. Even if some directly-operated stores are not very profitable, relying on the good location and the added value of the stores can be regarded as a new growth point for the group. As a result, this was also called by Li Jianhui.
stop.
This makes Huihong Group quite frustrated. They think that since the establishment of the group, they have been supporting the development of their brother companies. Now they see these companies continue to expand while Huihong Group remains unchanged. This makes them feel better.
Therefore, after Li Jianhui finished speaking, Toru Iwatani said: "Li Sheng, you also know the current situation of the group. There are only two main businesses, one is arcade machines and the other is home game consoles.
These two main components are still provided by Huaxin Group. We have no control over pricing at all, and we are also unable to reduce costs here.
If we don't develop other businesses, I'm afraid the group's profits will have reached its peak. It will be very difficult to increase profits. We can't guarantee that we can develop best-selling games like Twelve Street Fighters every year. I hope Li Sheng can help us.
It shows a clear path for our group to continue to develop at a rapid pace.”