Chapter 97: Continuing to Raise Funds
After leaving Pao Yue-kong's residence, Lin Haoran was in an exceptionally good mood.
The visit had been more than worthwhile.
Not only had he found a way to make his investment work, but he had also gained access to Pao Yue-kong's network, which would make the entire investment process much smoother.
Before they parted, Lin Haoran had already given Pao Yue-kong the telephone number of the Lin family villa. As soon as there was any news from Saudi Arabian Oil Company (Saudi Aramco), Pao would call him directly.
After returning home, Lin Haoran sat in the living room chatting with his father, Lin Wan'an, while waiting for Pao Yue-kong's phone call.
He did not tell his father about his plan to invest in oil.
Even Pao Yue-kong believed the investment carried enormous risks and was unwilling to take them, let alone Lin Wan'an, who had always been extremely cautious in business.
Convincing his father to invest alongside him was simply impossible.
If anything, bringing it up would probably only earn him a lengthy lecture.
About half an hour later, the telephone finally rang.
Sitting beside the phone, Lin Haoran immediately picked up the receiver.
As expected, it was Pao Yue-kong.
"Alright... alright... alright, I understand. Uncle Pao, you've really gone to a lot of trouble for me. Thank you so much. I've written down the phone number. You should get some rest as well. I won't keep you any longer. Goodbye."
After hanging up, Lin Haoran gently set down the receiver and let out a long sigh of relief.
In his hand was a small slip of paper with a telephone number written on it.
Lin Wan'an looked at his son curiously.
Knowing exactly what his father was wondering, Lin Haoran smiled and explained,
"Dad, I'm working on a business partnership right now. Uncle Pao helped introduce me to the right people. As for the details... they're confidential for the moment. Just wait for my good news—I promise it'll be a pleasant surprise."
"You always have to be so mysterious, even keeping secrets from your own father," Lin Wan'an complained with a smile, though he chose not to ask any further.
"Dad, it's getting late. I'm heading upstairs to rest. You and Mom should get some sleep too. Good night."
He waved to his father before heading upstairs with light steps to his bedroom.
Just moments earlier, Pao Yue-kong had informed him that he had successfully contacted the president of Saudi Aramco. Out of respect for Pao's reputation, the president had agreed to discuss the deal with Lin Haoran personally.
However, Lin Haoran would have to travel to Saudi Arabia himself to negotiate and sign the contract.
After all, even a deal worth two to three hundred million Hong Kong dollars was merely a small transaction in Saudi Aramco's eyes.
By 1978, Saudi Aramco's annual crude oil production had already exceeded 400 million tons.
What did that figure represent?
At the time, international crude oil prices hovered around US$13 per barrel.
Four hundred million tons of crude oil translated to nearly three billion barrels.
That meant Saudi Aramco's annual oil sales exceeded US$39 billion.
At the current exchange rate of roughly five Hong Kong dollars to one US dollar, the company's annual oil revenue surpassed HK$200 billion, and likely even more.
Furthermore, Saudi Aramco's business extended far beyond crude oil production—it also controlled four American oil companies.
Compared to that, Lin Haoran's two- or three-hundred-million-dollar purchase was insignificant.
The fact that Saudi Aramco's president was willing to meet him personally was entirely due to Pao Yue-kong's prestige as the world's leading shipping magnate.
Of course, two to three hundred million Hong Kong dollars was merely Lin Haoran's estimate.
Exactly how much he could borrow remained uncertain.
He decided to get a good night's sleep first and determine whom to approach for financing the next day.
The following morning, Lin Haoran and his father left the Deep Water Bay villa together.
Each got into his own car before driving away.
Rather than heading directly to Qingzhou Yingni, Lin Haoran had another priority.
Now that the oil purchase channel had been secured, the next step was raising capital.
Although he still had HK$63 million in available funds, that was far from enough.
Even if oil prices doubled, the profits generated from such a limited investment would still be relatively modest.
The larger the investment principal, the better.
Sitting in his office at Universal Investment Company, Lin Haoran browsed through a stack of financial institution profiles.
HSBC, Hang Seng Bank, Standard Chartered Bank, Citibank, American Express Bank, Banque de Paris, Bank of East Asia, Wing Lung Bank, Wing Hang Bank...
Foreign and local Chinese banks were spread all across Hong Kong.
Besides these were numerous finance companies operating under financial services licenses, including Yumin Finance, Kowloon Finance, Yatai Finance, and many others.
Altogether, there were several hundred banks and finance companies throughout Hong Kong.
Nearly all of them offered short-term loans.
The fierce competition in Hong Kong's financial sector was evident.
Hang Seng Bank was no longer among his preferred choices.
Traditional banks were too conservative, generally lending only an amount equivalent to the collateral's assessed value.
Finance companies, however, were much more flexible.
Not only were their approval standards looser, but they were often willing to extend larger loans.
Previously, Yumin Finance had loaned him HK$50 million using only Huafeng Cement Factory as collateral.
"Perhaps... I should approach Yumin Finance again?"
He knew Yumin Finance would eventually collapse.
With management like theirs, trouble was practically inevitable.
Because of that, he had never wanted to become too deeply involved with them.
Still, among all the finance companies, Yumin was the one he understood best.
Besides, it would likely take several more years before anything happened.
Since it was only 1978, perhaps it really was worth speaking with Yang Changdao again.
Yang Changdao had called yesterday morning to congratulate him, though their conversation had consisted mostly of polite formalities.
With that thought, Lin Haoran decided to call him again.
"Uncle Yang, are you available? I'd like to discuss something with you... What? You're coming over instead? Alright, I'm on the nineteenth floor of Hengfeng Building. Just come directly."
After hanging up, Lin Haoran couldn't hide his surprise.
Originally, he had planned to visit Yumin Finance personally.
Instead, before he could even suggest it, Yang Changdao had volunteered to come to him.
It seemed his elevated status had significantly changed the way Yang viewed him.
Previously, Yang had regarded him as nothing more than a capable junior.
Now things were different.
Lin Haoran was the chairman of a major listed company.
Within Hong Kong's business community, his standing had already surpassed even that of his father, Lin Wan'an.
Barely ten minutes later, Yang Changdao arrived outside Universal Investment.
The speed was astonishing.
Yumin Finance and Hengfeng Building were both located in Central, so the distance wasn't great.
Even so, for Yang to arrive in just over ten minutes clearly showed how seriously he now regarded Lin Haoran.
"Uncle Yang, let's talk in my office."
After shaking hands warmly, Lin Haoran led him inside.
Yang Changdao's emotions were complicated.
Less than two months ago, they had completed a loan transaction together.
Who could have imagined that in such a short time, Lin Haoran would become the chairman of a British-owned listed company?
Even today's newspapers were still filled with reports and analyses of his acquisition of Qingzhou Yingni.
Through that single acquisition alone, nearly everyone in Hong Kong had come to know his name.
After sitting down, Yang Changdao asked curiously,
"Haoran, what brings you to me today?"
His attitude toward Lin Haoran was naturally very different from before.
"Uncle Yang, I'm planning another investment and currently have a funding shortfall. If I use my position as chairman of Qingzhou YingniPao Yue-kong, together with my shares in the company as collateral, how much could Yumin Finance lend me?"
Yang Changdao's eyes lit up.
A major deal had just presented itself.
To him, Lin Haoran was now far more valuable than before.
"Haoran, how many shares are you willing to pledge as collateral?"
Previously, that HK$50 million loan had required not only Huafeng Cement Factory as collateral but also shares of equal value.
Since Lin Haoran wasn't mentioning that arrangement now, Yang deliberately avoided bringing it up as well.
There was no point.
Things had changed.
Simply being the chairman of Qingzhou Yingni meant he could easily obtain tens of millions in financing without pledging anything.
"I'm prepared to pledge ten million shares."
After a brief moment of thought, Lin Haoran gave his answer.
In reality, he currently owned 11.55 million Qingzhou Yingni shares, while another 8.5 million shares remained pledged to Hang Seng Bank.
The difference between saying ten million and 11.55 million wasn't significant, so he rounded the figure.
"Ten million shares..."
After considering it for a moment, Yang replied,
"Based on the current market value, those shares alone could support a loan of about HK$50 million. Factoring in your position as chairman, I can approve HK$100 million."
Lin Haoran, however, was not satisfied.
He shook his head.
"Uncle Yang, I need a much larger credit line. With that amount, I could probably borrow the same sum from HSBC. To be honest, I even have some acquaintance with Mr. Michael Sandberg. I simply don't want to go through the lengthy procedures over there.
"My financing needs are much greater than HK$100 million.
"That's why I came to you again."
He knew Yang Changdao certainly had methods to secure a larger loan.
In his previous life, he had read about the Carrian Group.
Its owner had purchased a piece of land in Yuen Long for just HK$18.5 million, then mortgaged it to Yumin Finance and somehow received a HK$60 million loan.
Clearly, Yumin had its own ways of handling such deals.
Yang Changdao became more cautious.
"Haoran... how much are you actually looking to borrow?"
"I want HK$300 million."
Lin Haoran named the figure without hesitation.
"The loan term will still be one year."
Yang Changdao immediately shook his head.
"Haoran, it's not that I don't want to lend it to you. The amount is simply too large.
"It far exceeds the value of the shares you're pledging."
"I'm the controlling shareholder of Qingzhou Yingni," Lin Haoran replied calmly.
"That status itself is worth more than the stock price alone.
"Besides, Qingzhou Yingni's intrinsic value is far higher than its current market capitalization.
"The company is worth at least HK$500 million.
"The land it owns in Hung Hom alone is worth an enormous amount.
"So I don't think borrowing HK$300 million is excessive.
"You can have it professionally appraised if necessary."
He wasn't exaggerating.
That parcel of land alone would eventually be worth several hundred million Hong Kong dollars.
The only prerequisite was converting it from industrial use into commercial land—a process he fully intended to complete in the future, even if it meant paying a substantial land premium to the government.
"Haoran, there's no need for an appraisal."
"We've already thoroughly evaluated Qingzhou Yingni."
"Given your current status, there's no way I can approve HK$300 million."
"However..."
"I am confident I can arrange HK$200 million."
"HK$200 million?"
Lin Haoran frowned slightly.
The figure was already close to what he had expected, but he still hoped to secure more.
So he continued negotiating.
"Uncle Yang, to be honest, the project I'm investing in requires HK$300 million.
"I already have HK$60 million in available cash.
"How about this?
"Have Yumin Finance lend me HK$240 million, allowing me to make up the full HK$300 million.
"The term remains one year.
"After all, neither Qingzhou Yingni nor Wan'an Group is going anywhere—they're both right here in Hong Kong.
"I'm sure someone as capable as you can find a way to make it happen.
"And as for the customary facilitation fee..."
"Once everything is completed successfully, HK$500,000 in cash will be yours as a token of my appreciation."
It was only an additional HK$40 million.
Lin Haoran believed Yang Changdao would find it difficult to refuse.
Yang remained silent for a moment before finally replying,
"Haoran, let me think it over.
"I'll need to go back and discuss it with the others.
"As soon as we reach a decision, I'll call you immediately."
(End of Chapter)
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