anovelconsole Chapter 1005 The Nuclear Power Plant Game: The Reasons for Kadoorie's Delay
Chapter 1005 The Nuclear Power Plant Game: The Reasons for Kadoorie's Delay
After listening to Chen Shulin's explanation, Lin Haoran nodded thoughtfully.
This is perhaps the Kadoorie family's biggest concern.
As the industry leader, what Chen Shulin saw was certainly similar to what Kadoorie saw.
The success of the Daya Bay Nuclear Power Plant in its previous life was largely due to the fact that the policy for the project remained consistent.
In 1986, the Chernobyl nuclear power plant accident in the Soviet Union almost caused the project to fail.
Because the Daya Bay Nuclear Power Plant is only about 52.5 kilometers away from Kowloon, Hong Kong, Hong Kong society is gripped by a fear of nuclear power.
Dozens of civic groups in Hong Kong formed a "Joint Conference to Fight for the Halt of the Daya Bay Nuclear Power Plant Construction."
Various rumors have spread, and some people have even spread false information such as "pressurized water reactors are the most dangerous reactors".
Thanks to the firm stance of the central government and the cooperation of the British side in taking strong measures in Hong Kong to quell public opinion, the crisis was ultimately weathered without major incident.
It must be said that these business tycoons are indeed clear-headed and have seen all the possible risks clearly.
As a time traveler, Lin Haoran was naturally not worried that the construction of the nuclear power plant would be halted due to policy changes or sudden crises.
Therefore, his mindset was completely different from Chen Shulin's.
Only Lin Haoran knew what a right decision it would be to invest in the Daya Bay Nuclear Power Plant!
Lin Haoran and Chen Shulin chatted for a while longer, especially about the future development of the Hong Kong Electric Group.
The two discussed everything from power project planning in Southeast Asia to investment opportunities in the energy sector in mainland China, and the upgrading and transformation of the local power grid in Hong Kong. They talked in great detail and in great depth.
Chen Shulin had worked in the power industry for decades, and his understanding and judgment of the industry were far more profound than those of Lin Haoran, an outsider.
Although Lin Haoran was very accurate in judging the general direction, he never interfered with the details such as technical routes, project management, and cost control, leaving them entirely to Chen Shulin.
“Boss, there’s one more thing I’d like to report to you.” Chen Shulin closed the folder, his tone becoming serious. “China Gas has several projects underway recently, the largest of which is a piped gas project in an inland city.”
We are in talks with several Pearl River Delta cities near Hong Kong, including Guangzhou, Shenzhen, Dongguan, Chancheng, and Xiangshan, and the progress is quite good.
If these projects are successfully implemented, Hong Kong and China Gas's profit growth in the next few years will be substantial. However, my concern is that the gas pricing mechanism in mainland China is still immature, with too much government intervention, which may compress profit margins.
Lin Haoran picked up his teacup, took a sip, and pondered for a moment.
"Chairman Chen, the reforms in the mainland have only just begun, and many mechanisms are indeed not yet mature, but the direction is right. As business people, we cannot wait until all conditions are ripe before entering the market, because by then the good opportunities will have already been snatched up by others."
Although the profits from gas projects may not be as high as expected, they are stable, have good cash flow, and are essential for people's livelihoods, so the government will not allow them to lose money.
This direction can be pursued further, but it's important to control risks and avoid making too large a single investment; it should be done in phases.
Chen Shulin nodded and made a few notes in his notebook.
"Can't we get into big cities like Beijing and Shanghai?" Lin Haoran asked after thinking for a moment.
"They can't get in. In cities like Beijing and Shanghai, the gas supply is still dominated by state-owned enterprises, and local governments are cautious about foreign investment."
"Because the Pearl River Delta region has made great strides in reform and opening up, state-owned enterprises have lagged behind in the pace of urban development. Therefore, they also have plans to attract foreign investment. In addition, our Hong Kong Electric Group has already accumulated a good reputation in the mainland, so it is relatively easier to negotiate." Chen Shulin shook his head and said with a wry smile.
Lin Haoran nodded and didn't ask any further questions.
Instead of expending great effort to tackle tough challenges, it would be better to first establish a foothold in the Pearl River Delta, and then, once sufficient experience and resources have been accumulated, to plan for expansion northward.
“Then let’s negotiate with these cities in the Pearl River Delta first.” Lin Haoran put down his teacup. “The conditions can be relaxed a bit, but the core terms cannot be compromised. What we need is a long-term, stable cash flow, not short-term high profits. Even if we don’t make money in the short term, it doesn’t matter. The most important thing is to capture the market as soon as possible.”
"Understood." Chen Shulin closed the folder. "Boss, I'll proceed in this direction."
By the time I left the headquarters of Hong Kong Electric Group, it was completely dark.
The streetlights along the Kennedy Tunnel came on, casting a warm glow on the asphalt and adding a touch of coziness to the quiet road.
Lin Haoran sat in the back seat of the Rolls-Royce, leaned back in the leather seat, and let out a long sigh.
He is quite satisfied with the current development of HK Electric Group, which is even better than he expected.
With ample cash flow, HK Electric's investment capabilities are not much worse than those of Hongkong Land.
It has to be said that HK Electric Group has developed very quickly in recent years, much better than before he acquired it.
When he acquired HK Electric, although HK Electric owned many prime locations, it needed to collaborate with other real estate companies to develop these sites, which meant giving up a lot of profits.
Today, with the sharing of resources among Lin Haoran's many sister companies, Hong Kong Electric Group no longer has any weaknesses.
Even if there are any, other sister companies under Lin Haoran's control can make up for it.
The total market value of Hong Kong Electric Holdings Limited has increased from about HK$22 billion when it was acquired by Lam Ho-yin to nearly HK$300 billion, more than ten times.
This figure would be enough to make anyone take notice in Hong Kong's business world.
And this happened in less than four years!
Everything was because of Lin Haoran's takeover.
Otherwise, according to the historical trajectory of Lin Haoran's previous life, Hong Kong Electric Group would eventually be swallowed up by Li Ka-shing's Hutchison Whampoa, becoming part of the Li family's energy empire.
And half of Hong Kong Power will fall completely into the control of the Kadoorie family and Li Ka-shing.
In this life, everything has changed.
Instead of being divided up, Hong Kong Electric Holdings Limited has grown into a regional energy giant and even a diversified giant that spans Southeast Asia and extends into the mainland under the leadership of Lin Haoran.
Li Jiacheng is now merely a pawn in Lin Haoran's business empire.
Lin Haoran not only acquired Hutchison Whampoa, but is also the vice chairman and second-largest shareholder of Cheung Kong Holdings. If he so desires, he could even become the largest shareholder of Cheung Kong Holdings at any time.
On the surface, Li Jiacheng still enjoys immense success, but in reality, he is constantly at the mercy of others.
Thinking of this, Lin Haoran's lips curled up slightly.
……
Kadoorie Hill is one of Hong Kong's oldest and most prestigious luxury residential areas.
This area is located in the central part of Kowloon, with gentle hills and lush greenery. The detached houses are nestled among the verdant trees, creating a tranquil and prestigious atmosphere.
Unlike Victoria Peak, the mansions on Kadoorie Hill have a more British style, with red brick and white walls, surrounded by gardens, and each one is a unique custom-made masterpiece.
The Kadoorie family owns 80% of the land in the entire Kadoorie Hill area.
The property comprises 86 detached houses and 39 multi-story units, and is currently only available for rent, not for sale. The rental income from this property alone is an astronomical figure every year.
But at this moment, Roland Kadoorie, sitting in his study at the Kadoorie Manor, had no mind to calculate these rental incomes.
He had just hung up the phone, his brow furrowed.
The call was from Minister Liang, and the reason was simple: he was inviting him to Shenzhen for a new round of consultations on the Daya Bay Nuclear Power Plant project and asking if he was available in the next few days.
That's not the point. The point is that Minister Liang revealed an important piece of information over the phone: this consultation involved not only CLP Power and mainland officials, but also someone he both hated and feared—Lin Haoran.
In August 1981, led by Li Ka-shing, along with Laurence Kadoorie, former Standard Chartered tycoon Brown, and Jardine Matheson's Henry Keswick, a total of four people formed the "Anti-Lin Alliance" in an attempt to suppress Lin Haoran.
As a result, Li Ka-shing lost Hutchison Whampoa, and even his own Cheung Kong Holdings was taken over by Lam Ho-yin, ultimately ending with Li Ka-shing issuing a public apology. Standard Chartered's tycoon, Brown, was directly dismissed by Standard Chartered headquarters, which personally apologized to Lam Ho-yin.
Although Henry did not lose anything, he left Hong Kong again in a dejected manner, like a stray dog.
As for Laurence Kadoorie, the losses were equally devastating. The Peninsula Hotel, a symbol of the family's honor, was forcibly acquired by Lin Haoran—forcibly, not voluntarily.
If the Kadoorie family hadn't held absolute control over CLP Power, and if the Governor's Office hadn't agreed to Lam Ho-yin simultaneously controlling both of Hong Kong's major power companies, CLP Power would likely have been difficult to save.
After the crushing defeat of the "Anti-Lin Alliance," the Kadoorie family was severely weakened. The loss of the Peninsula Hotel was not only an economic loss, but also a major blow to the family's reputation.
The old Hong Kong money families who used to have afternoon tea and do business at the Peninsula Hotel now look at the Kadoorie family with a different kind of respect, not awe, but pity.
Although more than a year has passed, Laurence Kadoorie still feels lingering fear whenever he thinks about the previous crushing defeat.
The study was quiet, with only the old clock on the wall ticking away.
His son, Michael Kadoorie, sitting next to him, asked, "Father, what happened?"
Michael Kadoorie became a director of CLP Power in 1967. Now 42 years old, he has been identified as the next successor. However, he now assists his father, Laurence Kadoorie, in managing family affairs in preparation for taking over fully in the future.
Laurence Kadoorie glanced at his son and briefly recounted the contents of Minister Liang's phone call.
Michael Kadoorie frowned as well after hearing this.
"Lin Haoran is going too?" There was a hint of nervousness in his voice.
“Yes.” Laurence Kadoorie nodded. “And judging from Minister Liang’s words, Lin Haoran is a key participant in this consultation, and the mainland places great importance on him.”
"Is it because we haven't signed yet?" Michael Kadoorie asked, looking up.
CLP Power genuinely wanted to participate in the Daya Bay Nuclear Power Plant project and was proactive in doing so, having expressed interest as early as 1979.
Like the mainland, Hong Kong also suffers from power shortages. CLP Power, as Hong Kong's largest power company, has been looking for a stable and low-cost power source. Coincidentally, Guangdong Province lacks foreign exchange and technology, and it wanted to borrow foreign capital and sell its products to repay its loans.
Therefore, when the idea of building the Daya Bay Nuclear Power Plant came from the mainland, Laurence Kadoorie immediately led a team to Guangzhou and held the first meeting with the Guangdong Provincial Power Department.
At the time, their attitude was very clear: they were willing to form a joint venture, buy electricity, and use the foreign exchange from electricity sales to help repay the loan.
It can be said that the Kadoorie family was very active from 1979 to 1981.
However, by 1981, the Kadoorie family's attitude began to change.
They stipulated that the equipment on the conventional island must be British, the $40 billion loan must be fully guaranteed by the mainland, and the electricity price must be lower than the coal price.
In other words, they are unwilling to take any risks but want the maximum benefits, making their conditions extremely demanding.
In particular, as negotiations on the future of Hong Kong deteriorated last year, the Kadoorie family's enthusiasm clearly declined and their hesitation intensified.
With negotiations between the mainland and the UK stalled, Hong Kong's future uncertain, public sentiment unstable, and the Hong Kong dollar highly volatile, the pace of negotiations between CLP Power and Guangdong Province slowed significantly, and Lawrence Kadoorie was in no hurry to sign the agreement.
In any case, the Kadoorie family's attitude is: neither refuse nor push forward, just wait and see!
Laurence Kadoorie nodded and said, "It should be. After all, the mainland has been very anxious about this matter, but we have been dragging our feet. So they plan to bring Lin Haoran into the picture."
"Father, what's your opinion on this matter? If Lin Haoran really participates in the investment and accelerates the project's implementation, what will happen to CLP Power? Should we follow suit?" Michael Kadoorie asked humbly.
Laurence Kadoorie paused for a moment, then slowly said, "If Lin Haoran really gets involved and helps bring this project to fruition sooner, it might not be a bad thing for us."
Michael Kadoorie paused for a moment.
He thought his father would be angry or anxious about Lin Haoran's involvement, but his father said, "It may not be a bad thing."
"Father, you mean..."
“What I mean is, this project really can’t be delayed any longer.” Laurence Kadoorie stood up, walked to the window, and looked out at Kadoorie Hill. “It’s been more than four years since 1979.”
Why have we been hesitating, observing, and waiting for the best conditions? Isn't it because we don't want to take any risks and want to import cheaper electricity?
However, the mainland has never been willing to make concessions without limits, which means that neither side is willing to back down, so the project can only be a plan that cannot be implemented.
If Lin Haoran gets involved, he will take on the biggest risk for us, especially if his Hong Kong Electric Group is willing to provide credit backing for these billions of dollars in loans, then we will have no worries.
The project was completed, and we obtained the most favorable electricity prices, which also solved Kowloon's power shortage problem.
But if the project fails, we won't suffer any losses. The biggest losers will be Hong Kong Electric Group and the mainland. No matter how you look at it, we're not at a disadvantage!
Michael Kadoorie's eyes gradually lit up as he listened to his father's analysis.
"Father, do you mean we should follow Lin Haoran and let him lead the charge?"
"Correct."
Laurence Kadoorie turned to look at his son and said earnestly, "Michael, you must understand that in this world, you don't have to be number one in everything."
Sometimes, following behind others is actually more stable. Lin Haoran is willing to take the lead and bear the risks, so let him go.
We'll do our job well, take our rightful share, and make our rightful profits. Decades later, when Lin Haoran has left or his attention has shifted elsewhere, we'll still be here.
This is the fundamental reason why the Kadoorie family has been able to stand for over a century.
“My son has learned a lot!” Michael Kadoorie said respectfully.
His father, Laurence Kadoorie, was always the person he admired most. In his eyes, his father was not only a shrewd businessman, but also a wise man who knew how to survive.
The Kadoorie family has been able to stand firm in Hong Kong, a land of ever-changing times, for nearly a century, not because of a moment's luck, but because of the wisdom and ability to assess situations accumulated by generations.
Now, as his father imparts all the knowledge he has gained throughout his life, Michael feels both moved and burdened.
What moved me was my father's trust, but what weighed heavily on my shoulders was the responsibility.
"Should we invest in that project? If so, how much should we invest?" Michael pondered for a moment before continuing to ask.
“We’ll just take a symbolic stake. The future of Hong Kong is uncertain, and nobody knows how the negotiations will go. We can’t gamble, nor can we stake the fate of our family.”
Regardless, once the Daya Bay Nuclear Power Plant is completed, it will be impossible to bypass China Power. The electricity will have to pass through our power grid to be transmitted to Kowloon and the New Territories.
Even if we don't own shares, we can still use cheap electricity. The reason we still want to participate is twofold: first, to show the mainland government our stance, and second, to prevent Lin Haoran from creating obstacles for us in grid connection in the future.
Furthermore, Hong Kong Electric Group wants to use electricity from the Daya Bay Nuclear Power Plant, which ultimately has to pass through our power grid across Victoria Harbour. That's our advantage!
Laurence Kadoorie took a deep drag on his cigar, the smoke slowly rising in the study.
"As for how much of a stake we'll take, we'll see later. In any case, we absolutely cannot invest too much money in this!"
Michael Kadoorie nodded thoughtfully.
“Father, I have other ideas!” he said.
“Oh? Michael, what do you think?” Laurence Kadoorie asked with a smile.
"Nowadays, in Hong Kong's business world, you can't get around Lin Haoran no matter what. He defeated Jardine Matheson, Huifeng, and Standard Chartered. We are nothing compared to him."
There is now a consensus in the Hong Kong business community that no matter what, you must not offend Lin Haoran, because those who offend him will not have a good outcome.
Therefore, this trip to the mainland might be a good opportunity for us to break the ice with Lin Haoran. Once the project is finalized under Lin Haoran's guidance, we will essentially become partners with him. (End of Chapter)