Chapter 129 - Securing 742 Million Hong Kong Dollars
The three Japanese representatives were clearly well-prepared before their arrival. As soon as Lin Haoran finished speaking, the oldest among them, speaking in slightly rough Hong Kong-style Chinese, said, "Mr. Lin, we are here with full sincerity and are willing to purchase your entire oil stock at 28 dollars per barrel. Although the current international oil benchmark price is 27.86 dollars, our offer exceeds the benchmark, reflecting our earnest intent." "28 dollars a barrel?" Lin Haoran shook his head slightly, showing a look of indifference. "This price, to me, lacks sufficient appeal. A mere premium of 0.14 dollars per barrel is almost negligible compared to the current international market fluctuations. There is no real difference."
He continued, "Gentlemen, allow me to be frank. I don't feel your sincerity. With just this price, it will be difficult to move forward with our cooperation. You must know, the oil market changes rapidly; prices rise day by day. In just this month, the price has surged repeatedly and could soon reach 30 dollars per barrel. If I wait until the end of the month, the profits from my oil could be much more substantial. In fact, several major petrochemical companies have already extended offers to me, but I have held off, seeking the best opportunity. However, out of respect for Mr. Bao Yugang, since you are his friends, I agreed to give you the chance to negotiate. But frankly, your current offer does not meet my expectations."
Upon hearing this, the three Japanese men exchanged glances. The eldest among them, more fluent in Hong Kong-style Chinese, carefully translated Lin Haoran's words for his companions. They then whispered briefly in Japanese. The elder turned back and asked politely, "Mr. Lin, could you tell us your ideal price?" "30 dollars per barrel," Lin Haoran stated bluntly. He knew this price was unlikely to be accepted, but it would give him more leverage in the negotiation.
If these had been buyers from other countries, they might have walked away immediately. But Japan's situation was different; their domestic oil shortage forced them to seek as much oil as possible abroad. As expected, the price of 30 dollars per barrel was immediately rejected by the Japanese side. "Mr. Lin," the elder responded earnestly, "although oil prices are indeed rising, it is uncertain whether they will reach 30 dollars. It could take a long time, or perhaps never happen. We are willing to show our sincerity by offering 28.86 dollars per barrel — 1 dollar above the international benchmark. This is the maximum we can offer. We hope you understand."
Was it that easy to negotiate? Lin Haoran was surprised. He had expected a long, drawn-out negotiation, lasting hours if not longer. Yet, they had immediately offered 1 dollar above the market price — a clear sign of desperation. In truth, Lin Haoran's ideal price was already around this figure. He knew, even if they urgently needed oil, they wouldn't allow prices to rise unreasonably. Japan was urgently building up strategic oil reserves. With severe domestic shortages and gas stations often running dry, their economy was under strain. Thus, while they needed a lot, they wouldn't blindly overpay.
Lin Haoran weighed the situation and decided to propose a straightforward deal. "Alright," he said, "since everyone is being direct, let's not waste time. I'm willing to sell all 4.8 million barrels for a total price of 140 million US dollars. Compared to 28.86 dollars per barrel, this total price is only slightly higher. If you can accept it, we can sign immediately."
Based on 28.86 dollars per barrel, the oil's total value was about 138.5 million US dollars. Lin Haoran's offer added only about 1.5 million — a minor increase reflecting his negotiating finesse. Upon hearing this, the elder Japanese man asked politely, "Mr. Lin, may we borrow your phone to report to our headquarters?" "Of course," Lin Haoran replied with a smile. Judging by their reaction, it seemed the deal was already as good as settled, pending final approval.
Clearly, their internal authorization allowed them to offer up to 1 dollar above the benchmark price. Lin Haoran's high initial offer had pushed them to reveal their bottom line earlier. 140 million US dollars, at the current exchange rate, equated to 742 million Hong Kong dollars. Compared to his original investment of just 300 million Hong Kong dollars, he was more than doubling his money! From November of last year to June this year — just over six months — such a return on investment left Lin Haoran very satisfied.
Sitting quietly on the sofa, Lin Haoran waited for them to finish their phone call. About twenty minutes later, the Japanese team hung up, their decision made. "Mr. Lin, we have reported to headquarters, and they have agreed to your terms. We hope to finalize the contract as soon as possible," the elder said.
Lin Haoran was pleasantly surprised at how smoothly negotiations had gone. In less than an hour, the deal was done. "Of course," Lin Haoran said. "But I have a few conditions: First, payment must be made upfront; second, payment must be in US dollars, wired directly to my designated Citibank account; third, since this is our first cooperation, I propose Mr. Bao Yugang as a mutual guarantor to ensure transparency and security."
No payment, no oil — Lin Haoran would not budge on this. Given that these buyers were introduced by Bao Yugang, and considering that transportation would likely involve Global Shipping Group, he felt reassured. But speed was critical — the sooner he had the cash, the faster he could pivot to his next investment opportunity.
As for why he wanted the funds wired to Citibank and not HSBC: Lin Haoran planned to invest in the U.S. gold futures market, and Citibank's U.S. operations were much more convenient. Although HSBC was powerful in Hong Kong, it was still a medium-sized bank globally at that time, whereas Citibank had long been an international banking powerhouse. Citibank had established its Hong Kong branch back in 1902, making it a natural choice for international transactions.
"Mr. Lin, your conditions are perfectly reasonable," the elder Japanese man replied enthusiastically. In fact, they had already planned to involve Bao Yugang as a guarantor. Over the years, they had built a solid and pleasant relationship with Global Shipping Group, and trusted Bao Yugang's reputation completely.
With everything agreed, there was nothing more for Lin Haoran to do. The Japanese team quickly returned at noon to Wan'an Group Tower, bringing Bao Yugang and several unfamiliar faces — their legal representatives. "Haoran, you're making a fortune this time!" Bao Yugang exclaimed upon seeing Lin Haoran.
Having been asked to serve as guarantor, Bao Yugang knew all the transaction details. 140 million US dollars — over 700 million Hong Kong dollars — such a massive cash flow made even Bao Yugang envious. This was real cash, not inflated stock market valuations. "Uncle Bao, I'm just lucky," Lin Haoran replied modestly. But everyone knew it wasn't just luck. It took real courage to invest 60 million US dollars in oil last year, based on a hunch about a potential crisis.
Many had speculated about another oil crisis, but how many dared bet their fortunes on it? Bao Yugang knew he himself hadn't dared. Lin Haoran's success was a testament to his extraordinary foresight and boldness.
Since everyone was present, the contract signing proceeded immediately. Lin Haoran summoned Wan'an Group's legal counsel to draft the agreement with the Japanese team's lawyers. After thorough review by both sides, they formally signed the contract.
"Mr. Lin, we can wire the payment today. Once it's received, could you hand over the original purchase contract from Saudi Aramco to Mr. Bao Yugang's team to arrange delivery?" the elder Japanese man asked eagerly.
"Of course," Lin Haoran agreed. Since delivery would be handled by Global Shipping Group, a company with extensive cooperation history with Saudi Aramco, everything would proceed smoothly. These three Japanese petrochemical companies were among Japan's leading energy firms. They had much larger operations than Citibank's Hong Kong branch and were used to massive international transactions.
Thus, after signing the contract, they all headed together to Citibank's Hong Kong office. Upon learning the purpose of their visit, the Citibank Hong Kong branch manager personally handled the transaction. Through internal coordination with Citibank Japan, the 140 million US dollars were credited into Lin Haoran's account in less than half an hour.
Additionally, Lin Haoran was awarded Citibank's most prestigious Black Diamond VIP Card — entitling him to top-tier banking services worldwide. With the money safely in his account, Lin Haoran handed over the necessary documents to Bao Yugang. From there, the logistics were out of his hands. Global Shipping Group would handle the oil pickup from Saudi Aramco seamlessly.
Lin Haoran's pockets were now full, and his mood was naturally excellent. This was the largest amount he had ever earned since traveling to this world. Compared to his earlier profits from the Wharf Holdings stock battle, this was an entirely different scale. Subtracting the 300 million Hong Kong dollar loan he had originally taken, and some interest, Lin Haoran still netted over 400 million Hong Kong dollars in pure profit. With this war chest, he could now make his big move into the gold futures market. It was time — he would head to the United States next.
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