Chapter 107 A Visit from a Wealthy Young Master

Chapter 107 A Visit from a Wealthy Young Master

Chapter 107 A Visit from a Wealthy Young Master

On the fourth day after Robert and Robin left Hong Kong, Yang Wendong was discussing the site selection for the new factory with several people in the company.

Wei Zetao said: "I have already talked to the Industrial Bureau in Tsim Sha Tsui, and they are very supportive of our expansion of industrial development. As for the land, as long as we pay a normal price, the government can approve it, but some places may involve demolition costs and land leveling costs.

Or we can buy other people's factories or warehouses, but if they are large, they may not be available. Factories on the Kowloon Peninsula are generally not very large, and only small warehouses are for sale. Large warehouses generally do well. "

"Then buy the land from the government. It's worth the cost of leveling the land." Yang Wendong said without much thought.

Wei Zetao nodded and asked, "Which of these places do you think is good, Mr. Yang?"

Yang Wendong pointed to a location on the map and said, "This is it. It's not too far from the town center and the transportation is more convenient. We can just build an extra path to the main road."

In fact, he is not quite sure how Tsim Sha Tsui will develop in the future, because many places are still villages and farmlands.

Therefore, the basic logic behind his choice is to be close to the current town center and the seaside. It is better to have both, but having one is also acceptable. The instinct of human social development is to be close to water sources and to develop in the surrounding areas according to the original residences of the people.

Wei Zetao looked at the location and understood what the boss meant, but he still reminded: "Mr. Yang, the price here will be a little more expensive, about 1.5 times that of other places.

The Hong Kong government sells industrial land, just like residential or commercial land, based on location.”

"It's okay. The price is not high to begin with. It won't be much higher if it's a little higher." Yang Wendong didn't care at all and said, "It will be much easier to recruit people here in the future. We will need a lot of workers in the future. It will be troublesome to recruit people in such a remote location."

It is a little more expensive now because of the good location. In the future, such a large piece of land will not only be a matter of price.

Even now, many places on the Kowloon Peninsula are still wasteland or are just for ordinary agricultural use. For example, Dairy Farm International has a large amount of land in Bo Fu Lin for raising dairy cows.

Therefore, 14 years later, coveting its land reserves, Hutchison Whampoa launched the most famous "Hutchison Whampoa Drinks Milk" incident in Hong Kong's history.

Of course, Dairy Farm International purchased these lands earlier and on a larger area, so they are not available for purchase even now.

Similarly, the large area of ​​land that can be purchased now may not be available even if you have money 20 years later. Although it is industrial land, it will still be very valuable in the future.
Wei Zetao said: "Okay, then we just need to wait for the funds from the United States to arrive, and then we will buy the land immediately, and then arrange to clear the land and prepare to build a factory."

"Okay, this time, with our own large factory, our production capacity can finally be met." Yang Wendong said with a smile.

Wei Zetao added: "Mr. Yang, I have calculated the funds again. Although $50 is not a small amount, it may not be enough for the purchase of land, land leveling, factory building and subsequent large-scale equipment for a new large-scale factory.

In addition, we also need to prepare funds to purchase glue production lines and patents from 3M, so we still need to borrow some funds from the bank."

Yang Wendong asked with a smile: "You mean this is too much money?"

His current expansion is all financed by borrowing money. The 80 yuan loan from Liu Chongxing Bank in the early days has begun to be gradually repaid through the production returns from the existing factory, but it has not yet been paid off.

At least the early success has proved that you are capable of repaying your debts. In this case, you don’t actually need to borrow more money after paying off the loan.

This is the charm of finance, it can magnify leverage many times out of thin air. Relatively speaking, this is less common in industry, and neither banks nor factories dare to play this way.

Wei Zetao said with a smile: "Yes, it is a lot, but when doing business, you shouldn't use your own money, you should try to use the bank's money.

Take Hong Kong’s hottest shipping industry for example. Most people borrow money to buy ships, then operate them and slowly pay them back. If you don’t do this, you won’t make any money at all. It’s too slow.”

"Well, then we can lend it if we can." Yang Wendong agreed and said, "As for the risk, our products have been recognized by the market, and the risk is much lower than shipping."

The same thing happens in real estate, and the borrowing is even crazier. Otherwise, how could Mr. Xu in his previous life have owed more than 2 trillion yuan in debt? It was caused by unlimited borrowing, even though it was mortgaged.

However, Hong Kong real estate is not yet considered a mainstream economy, or in other words, no major companies have emerged yet.

Just then:

"Knock, knock, knock~" There was a knock on the door, and Su Yiyi walked in: "Brother Dong, there is someone from Liao Chongxing Bank outside, saying he wants to see you."

"From Liao Chong Hing Bank?" Yang Wendong and Wei Zetao looked at each other. Both of them didn't know what was going on. Generally speaking, a bank would not suddenly send someone to the factory.

Then Yang Wendong said, "Then let him in."

"Okay." Su Yiyi said and left to meet someone at the door.

Yang Wendong and Wei Zetao used these few minutes to tidy up their desks.

After a while, a young man who looked to be about 27 or 28 years old walked in.

"Hello." Yang Wendong also stood up and walked towards the door. The two met in the middle of the office and shook hands politely.

The visitor also smiled and said, "Hello, Mr. Yang. This should be Mr. Wei."

"Hello." Wei Zetao also shook hands and smiled.

"Please take a seat!" Yang Wendong invited the guest to sit on the sofa next to the office desk.

After moving into this new factory, office space is naturally no longer a big problem. Although it is not so luxurious as to make the offices and conference rooms very large, they are large enough for normal use and most people will not feel it is small when they come in.

"Okay, thank you very much," the visitor introduced himself before he sat down: "My name is Liao Liewen, and I'm a business manager at Liao Chong Hing Bank."

"Liao?" When Yang Wendong and Wei Zetao heard the surname, they immediately thought of a possibility.

The surname "Liao" is not a common surname. In his previous life, Yang Wendong met many people in his business and met one with this surname. And the official surname of Liao Chong Hing Bank is Liao. This coincidence is a bit too rare.

Wei Zetao paused and asked, "What is the relationship between Mr. Liao and Mr. Liao Baoshan?"

"It's my father." Liao Liewen replied politely. There was no other way. The surname of their family was quite rare. Not to mention that he was here on behalf of Liao Chong Hing Bank, even when he participated in some business activities in the past, once he said his surname, others would ask him the same question.

Because his father is the only famous wealthy man in Hong Kong with the surname Liao. If one has a common surname like Li, Chen or Liu, there will be no such worry and one can act low-key.

"My apologies." Yang Wendong was also very surprised. Why did this bank prince come to his place? However, he did not show it on his face.

"You're welcome, Mr. Yang." Liao Liewen smiled and then said, "Mr. Yang, I came here this time for two things."

"Please go ahead." Yang Wendong actually guessed one of the things.

Liao Liewen said: "Our bank has just received a bank draft of US$50 from Citibank in the United States, and the account the draft was transferred into is yours.

We have also confirmed with Citibank, but on your side, our bank also needs to confirm it, after all, it involves $50 in funds."

"It's ours." Yang Wendong said with a faint smile. As expected, it was because of this huge sum of money.

In fact, this is normal. In that era, $50 was a very large sum of money. It was because of the huge potential of the Post-it Notes market that 3M was willing to pay this money.

In the original history, Post-it Notes were one of the core products of 500M, a Fortune 3 company, and were even rated as one of the top 20 inventions that changed human living habits in the 100th century. Compared with this, even the millions of dollars of this era cannot compare.

"I know this matter is confidential to your company, but as a cooperative bank, can we get a rough idea of ​​what this fund is?"

Although Liao Liewen had been prepared, he was still shocked when Yang Wendong said it, and then he said: “Of course, if it is not convenient to say, it doesn’t matter;
As a cooperative bank, if we know the financial and operating conditions of our partners, it will be easier for us to make more accurate risk assessments and serve our customers more conveniently in future financial cooperation.”

"I understand." Yang Wendong nodded, and then said: "This is an advance payment from 3M Company in the United States to us for the future, which will facilitate our expansion of production capacity. It is considered a loan, but the interest rate is not high, so it can be considered a low-interest loan."

"Prepayment?" Liao Liewen was surprised and asked, "Is the market for these sticky notes really that big?"

Although he knew about Post-it Notes and felt that they were very practical, he did not have a detailed idea of ​​how big the market would be.

Yang Wendong said with a smile: "Conservatively speaking, there are tens of millions or even hundreds of millions of office workers in various industries around the world. I think as long as these people come into contact with sticky notes, they should not refuse to use this thing, right?

"Has Mr. Liao ever used it?"

"I know about sticky notes, but I have never used them. My secretary does, however," Liao Liewen replied.

"Yeah, that's right." Yang Wendong nodded. At the leadership level, there is naturally no need to use this thing. It is enough to have a secretary to record the itinerary.

Sticky notes are actually mainly used by ordinary office workers, but this group accounts for the vast majority.

Liao Liewen thought about it carefully and felt that it made sense. In any company in the world, whether it was finance, real estate, industry, law, hotels, etc., who didn't have office staff? The only difference was the number.

If these people all used sticky notes, it would be an unimaginable market. No wonder the giant American company would give such a large sum of money to Yang Wendong. It must be because Yang Wendong's business has just started, and the factory's upgrading speed is not that fast, so he urgently needs funds.

In this case, Yang Wendong's future is absolutely incredible.

So he said, “Mr. Yang, I came here this time not only to learn more, but also to tell you that if you have any financial problems, my Liao Chong Hing Bank is willing to solve your problem again.

Over the past decade, our Liao Chong Hing Bank has helped many companies develop in Hong Kong's industrial and commercial sectors, and we are also willing to have better cooperation with Changxing Industrial. "

"What a coincidence! In fact, even if Mr. Liao didn't come today, I might have visited your bank." Yang Wendong said with a smile.

Banks will not provide timely assistance, they just like to add icing on the cake.

Before 3M gave him the money, he wanted to borrow more from the bank to expand the facility. However, many banks in Hong Kong, including the Liu Chong Hing Bank, had restrictions on funding.

Of course, this cannot be blamed on them. After all, in this world, perhaps only Yang Wendong, a man of the future, and 3M, which is currently operating the Post-it Notes, could possibly know the future value of Post-it Notes. On the other hand, if Yang Wendong worked for a bank, there would definitely be restrictions on this type of loan.

Now that 3M, an international giant, has put out such a large amount of funds, it has given these banks a certain degree of confidence.

Liao Liewen immediately asked: "Mr. Yang, please tell me that I, Liao Chong Hing Bank, am willing to serve Hong Kong's manufacturing factories."

Yang Wendong said: “Before, I had limited funds from the bank, so I adopted the model of renting a house to expand production capacity;
Now that I have more funds, and the factory area I need is very large, I may not be able to rent one in a short period of time, so I plan to build my own factory, which requires a lot of funds. "

"That's no problem." Liao Liewen said immediately, "How big is the factory that Mr. Yang wants to build? Isn't $50 enough?"

Yang Wendong said with a smile: “US$50 is certainly enough to build a factory, but after the factory is built, we still need to buy a lot of equipment;

In the early stages of expanding production capacity, we need to purchase a large amount of raw materials and recruit a large number of people. There are also many other aspects that require funds. From a business perspective, we also need sufficient funds in the account to maintain operations.

Only after the capacity expansion is completed and a large amount of goods are sold, will the funds improve; and this process will take a long time. "

"I understand." Liao Liewen nodded and asked, "Then how much money does Mr. Yang need?"

Yang Wendong replied: "It will take some time to confirm this. We haven't decided on the site for the new factory yet, and we need to communicate with the Hong Kong government.
In terms of funding, the more the better.”

"Okay, then we'll discuss it later." Liao Liewen smiled and asked, "By the way, I know Mr. Yang has also mortgaged a property from our bank. If you have any other needs in this regard, you can also bring it up."

"Not for now. If necessary, I will raise it." Yang Wendong nodded.

The money 3M borrowed was naturally needed to expand its production capacity, and this was clearly stated in the loan contract. Although it is difficult for the United States to monitor this side, if M embezzled too much money, it might not be able to conceal it.

Besides, the current real estate market has indeed started a new bull market, but real estate is not yet the mainstream in Hong Kong at this time, and it is far behind the post-it notes that are about to become popular all over the world;

Unless it is assets in prime locations such as Central, he only needs to hoard some land while doing industry.

(End of this chapter)