Liang Anqi is about to fade out of SJM's power center, and she has been accompanying her family in Shanghai during this time, living a comfortable life. In fact, many people don't know that quitting is not only Liang Anqi, but also Liang Anqi's son He Youheng. Originally, He Youheng was placed in high hopes by many people, thinking that he might be the successor of He Chaoqiong in the future, because the younger generation of the He family is currently the only one working in SJM.
But now that He Youheng has withdrawn from the company's board of directors, it is difficult to understand. At the same time, SJM's flagship hotel Shanghai Lisboa senior management has also been replaced. Including the president, vice president of marketing, senior manager and other people have left one after another in recent days, obviously an all-out reshuffle has come.
For He Chaoqiong, she is also a helpless choice. On the one hand, Liang Anqi is old, and she will definitely fade out of management. At the same time, in the past three years, this group of people has not been able to turn a profit in SJM, and He Chaoqiong must replace a new group of people to find a way to bring the company back to life.
Many people think that He Chaoqiong's biggest pressure now is gambling and bidding. In fact, there is no suspense in gambling bidding. Regardless of whether Genting will get the gambling card, SJM's gambling card should not be a big problem. Because this time it is 7 companies competing for 6 gambling cards, strictly speaking, it will definitely not be SJM who is out.
SJM is the flagship company of the Stanley Ho family, and it is not difficult for SJM to keep the gambling card. But after keeping the gambling card, He Chaoqiong's pressure came. At present, SJM loses as much as 17 million yuan a day. SJM has lost more than 4 billion yuan in the first three quarters of this year, which is 70% more than the same period last year.
After the epidemic, Macau gaming companies are losing money, but now Galaxy has made a profit. However, SJM is still losing money, and the loss has not narrowed, and it continues to expand, which is the biggest problem.
Because of the continued losses, SJM cash was under pressure in the first quarter, after which SJM sought a huge loan, temporarily stabilizing the situation. SJM currently has more than $4 billion in cash on hand, which seems safe, but the problem is Macau's new rule that allows gaming companies to deposit $5 billion in cash in custodial accounts.
Macau's regulation is to prevent some gaming companies from suddenly falling due to strength problems, so that there is a reserve fund to cover the bottom. This is similar to the fact that commercial banks have central bank reserves.
But for SJM, which is losing 17 million a day today, even if they don't spend the 5 billion in cash, they can only last for one year. This time next year, they will have to find ways to find new funding, and unless the company can turn a profit, the pressure will continue.
But now they have to prepare an additional 5 billion in cash, which will lead to new pressures. He Chaoqiong is not easy to get the gambling card.
Now He Chaoqiong's first problem is to find a way to turn losses into profits. However, there are two problems caused by the current loss, the first is the problem of the epidemic, and the second is the internal operation problem. The epidemic is out of our control, but we can find ways to save costs and at the same time find ways to increase new operating income.
The second problem is the internal problem, which has not improved for several years in the past, and now it must be replaced and replaced. As the saying goes, change the coach into the change of knife. To open up ideas, it is natural to change a new group of people, so we have seen the recent turmoil at the top of SJM, and there are also new people from the Huo family to join.
The third issue is to overhaul the issue. In fact, before the epidemic, the Stanley Ho family's gaming business had great problems. Although the two giants of Sands and Galaxy are latecomers, their operating models are very advanced, and they have always operated the gaming industry with a big entertainment concept. The Stanley Ho family's business is very traditional, still based on gambling. Over the past 10 years, Sands and Galaxy have been far ahead of the Stanley Ho family.
These three problems must be taken step by step, and it is not easy to solve any of them. If any step is not done well, then the Stanley Ho family's business may go downhill.
In 1960, the second generation of Macau's gambling king, Fu Laorong, died, and a year later, the family lost its gambling license, and since then, the Fu Laorong family has begun to decline, and now many descendants of their family have become ordinary people.
Now it seems to be another reincarnation, the third generation of gambling king Stanley Ho has just passed away, and it is another gambling card bidding. At the same time, the business of the Stanley Ho family has also encountered a bottleneck. If He Chaoqiong cannot find a way to break through the predicament this time, it is estimated that the He family will gradually decline in the future.
Many people think that the gambling business must be a profit, but in fact, this is not the case at all. Now, after years of adjustment, the supervision is becoming more and more stringent, Macau gaming is a passable business, most of the profits have to pay taxes, and the operating costs are also very high, and the risks are also very large. So Macau's gaming business is not what we imagined. These gambling tycoons are not as glamorous as we think.