Chapter 118: Acquiring 35 square feet of land and the bank's alternative
Chapter 118: Acquiring 35 square feet of land and the bank's alternative
In the afternoon, Wei Zetao brought good news: "Mr. Yang, the Hong Kong government has made the final confirmation on the land price and agreed to our price of HK$2.85 per square foot, a total of HK$99.6. As long as we pay the money, we can buy the land directly."
Yang Wendong was overjoyed and said, "Then take the land first."
The land purchase this time was not an auction, so there was no one-time price set. Instead, both parties were bargaining. Also, because there were no large factories nearby the chosen location, the land price was difficult to reference, so the dispute lasted for a while.
Although the need to expand production capacity was urgent, it still took some time to negotiate with the Hong Kong government because the loan was not available so quickly.
Wei Zetao nodded and said, "Okay, I have also negotiated with the construction company and are preparing to build a building. We will use our funds to build the industrial building first. The loan from Liao Chongxing Bank is a little slow, but there is no rush.
It will take at least two months to level the foundation and build the industrial building.”
"2 months?" Yang Wendong still felt it was a bit slow.
Wei Zetao said: "Mr. Yang, this time is already the limit. Generally, industrial buildings like ours take about half a year to build.
The most important thing is that we have to store equipment on the second floor and above. Although the equipment for post-it notes is not very large, the building quality requirements are still much higher than those of industrial buildings used for assembly. "
"Well, okay. If several construction suppliers say so, then we have to do it this way. Safety first." Yang Wendong nodded and asked, "What about the equipment? The amount of money required is not small."
Wei Zetao said: "Dongsheng has agreed to build an emergency workshop for our order and recruit people separately so as not to squeeze out their other production tasks.
But in this case, they need us to place a sufficient order at one time and pay half of the payment first, otherwise they can only produce in the normal way, at most speeding up for us, which is too slow. "
"Can we find someone else to do it?" Yang Wendong asked again.
Wei Zetao replied: "Of course it is possible, but there are not many factories in Hong Kong that manufacture equipment. I have contacted them before, and they are very happy to make equipment for us.
It's just that they need to produce so many units in such a short time, and they have made similar requirements to Dongsheng. If that's the case, it's better to find Dongsheng, at least they are familiar with it and can guarantee the quality. "
"That's true. To urgently increase production capacity, they must need certain guarantees for the equipment that only our company can use." Yang Wendong thought this was normal.
These equipment manufacturers cannot possibly know their future potential, and they would not believe it even if you told them. When it comes to investing a large amount of money in building new factories, they are bound to be conservative. This is the same for everyone.
At present, the factory where he currently works has a total of 86 Dongsheng equipment, each of which costs about HK$5000. Half of the 80 loan he took out previously was spent on the equipment. However, due to the production in the past few months, he also received a profit of about 50 to yuan. Together with other operating expenses, he still has about yuan in funds.
But the area of the new factory in the future will be 20 times that of this one. Although it will not be fully occupied immediately, according to the production capacity plan, about 300 units will be purchased in the early stage. Even if there is a discount for so many devices, it will require about to million yuan of funds.
Of the $50 he had, half was needed to pay for the purchase of a large piece of land, plus land leveling and infrastructure costs, and the other half was needed to set up a glue factory, etc.
The equipment for the new factory, future material purchases, and normal operating expenses, at least in the initial stage, will need to rely on new loans.
However, if the loan is slow or small, then I can only slow down the progress, which will not affect the life and death of the enterprise, but will make less money.
And with sufficient funds, expansion will be faster.
Wei Zetao breathed a sigh of relief and said, "I urged Liao Chongxing Bank again yesterday. It should be stuck with Liao Baoshan. Liao Liewen promised to ask again."
"Liao Liewen also said before that Liao Baoshan was also optimistic about our company, but now it's stuck. What does it mean?" Yang Wendong frowned and said, "Even if you think 400 million Hong Kong dollars is too much, we can still negotiate. Either reduce the amount or increase the interest. This matter can't be dragged on like this."
Wei Zetao paused and said, "Could it be because Liao Baoshan used all the funds from his bank to invest in his real estate company and couldn't turn it around in a short period of time?"
"Now that you mention it, this is indeed a possibility." Yang Wendong thought about it for a while and felt that this was a possibility.
Many people in Hong Kong's business community knew that Liao Baoshan used depositors' money to speculate in land and set up a real estate company, but it was not clear how much he used.
If you spend too much, you may not be able to come up with the required HK$400 million in a short period of time. In this era, HK$400 million is really not a small sum of money. It is enough to buy a similar piece of land in Central.
Wei Zetao went on to say: “If this is the case, then it may take some time for Liao Chongxing Bank to either recover some of the funds from its investment or to desperately absorb deposits.
HK$400 million is not a small sum and it is not something that can be raised so quickly.”
"I've also heard that Liao Chongxing Bank has started to absorb funds from small depositors again recently." Yang Wendong nodded and said, "It seems that this may really be the case."
Liao Baoshan was the first to absorb funds from small savers, which helped Yang Wendong in his early days of starting his own business.
Although this method is a bit cumbersome, it did bring a lot of funds to Liao Chong Hing Bank.
Wei Zetao also agreed and said: "It's just that we don't know when we can get the funds, which will put us in a passive position. If we get it earlier, I can build the entire super factory at one time.
We can also place an order with Dongsheng now, so that the first batch of equipment can arrive after the new factory is completed, and we can prepare for production immediately. Otherwise, any further delay will affect our production capacity plan."
Super Factory is the name given by the boss Yang Wendong to the new large factory. The purpose of building this factory is to ensure that the production capacity of sticky notes in America can be met, and to expand into the European and Asian markets in the initial stage.
Currently, due to insufficient production capacity, we can only wait.
After thinking for a moment, Yang Wendong said, "It doesn't matter what the reason is for Liao Chongxing's loan not to be approved. What matters is that we can't wait any longer.
In this way, you can organize our basic information, the flow between 3M and us, and the approximate market analysis of sticky notes in the global market, and then give it to Hang Seng Bank or several other banks. We cannot put all our hopes on Liu Chong Hing Bank."
Wei Zetao reminded: "Mr. Yang, our collateral is at most the industrial land we are about to buy, and the value of the collateral is not high. Even if we give it to several other banks, it will be difficult to obtain such a large amount of unsecured loans.
Then you have to go through the same process as Liu Chong Hing Bank and apply for an unsecured loan again, which will probably take a long time.”
At the beginning, they all liked to cooperate with Liao Chong Hing Bank because this company played more wildly. As long as the risk was not particularly high, they would dare to lend for the sake of profit.
Although other banks also have problems of one kind or another, their review process is definitely much stricter. Even if they are able to provide loans in the end, the amount will probably be reduced.
Yang Wendong said, "It's okay, let's apply first. Anyway, we are going to change the bank of funds, and we will give them these documents sooner or later."
If you are just changing banks, you don’t have to provide the information, but since you have changed banks, there must be cooperation, otherwise wouldn’t it be giving money to the bank for nothing? It doesn’t hurt to give the bank the relevant information as soon as possible.
"Well, OK." Wei Zetao nodded and agreed, then asked: "Our own information is easy to provide, but the cash flow with 3M needs to be provided by Liao Chongxing Bank.
If we apply, it means we are going to borrow money from other banks.”
Yang Wendong said with a smile: "We should let them know. Maybe we can urge them to hurry up. Even if they don't have funds, it is not difficult to borrow from other banks. I guess they are just reluctant to spend more money, so they are delaying us."
Wei Zetao nodded and said, "Yes, it's time to remind them. We are not in the same situation as we were a few months ago. Even if we still need to seek bank loans, we have many options." A few months ago, Changxing Industrial did not have much production capacity, so it was too dependent on banks, and could only rely on Liao Chong Hing Bank. However, now, it cannot be said that it is stronger than the banks, but it can stand up straighter. At least it has no problem putting some pressure on the banks.
Yang Wendong asked again: "Will Liao Chongxing Bank refuse to provide the bank statement?"
"That's not the case." Wei Zetao said with a smile: "It is one of the bank's obligations to provide bank statements. Although in this case, if he really doesn't provide it, it will be difficult for us to go to court.
But this approach is to cut off all other customers. If any customer knows that the bank where they deposit money does this, they will probably think carefully about whether to continue to cooperate. "
"That's true." Yang Wendong nodded.
In fact, large companies are often afraid of lawsuits. In fact, they are not really afraid of lawsuits, but the impact caused by something after it is spread, especially the impact on their other customers, which may not be worth the cost.
Therefore, it is not conscience that limits capitalists, but interests. If a customer has no influence on the capitalist, then he will not care, otherwise he will pay great attention to it. The simplest example is the store in the community and the store at the train station.
Wei Zetao continued, "Then I will call Liao Chong Hing Bank and ask them to prepare the bank statement. I will go to collect it tomorrow, and then go to Hang Seng Bank to open an account. Anyway, I have this plan."
"Okay." Yang Wendong nodded and said.
In the short term, the business of sticky notes, mouse traps and fly traps will need to wait until the new factory and the glue factory are built before they can be further developed.
During this period of time, he is relatively free.
The next day, Wei Zetao went to Liu Chong Hing Bank to get his bank statement. He would probably be entertained by Liu Chong Hing Bank. After all, he was a big customer. And he went to the University of Hong Kong.
Anyway, the Rubik's Cube will be his first product in the toy industry in the future, so he attaches great importance to it. When the local market in Hong Kong can be successful, it will also affect when he can start planning exports. The first stop in the Hong Kong market is the University of Hong Kong.
The car arrived at the back gate of the University of Hong Kong. Yang Wendong got off the car alone and walked into the campus as a "student". His age was only considered a junior in the school.
The campus of the University of Hong Kong is obviously very beautiful in spring. Various flowers that cannot be named are refreshing, and the air is also filled with the fragrance of spring.
The agreed place was naturally in the cafeteria, but when Yang Wendong went in, he quickly found the target.
"Why are you still wearing the school uniform?" Yang Wendong came to the seat, sat down unceremoniously, and said, "Isn't it good to wear your own beautiful clothes? It seems that other people are not wearing school uniforms either?"
Although he didn't quite understand the current campus rules of the University of Hong Kong, as Yang Wendong walked along, he saw that only about half of the people were wearing school uniforms, and it was obvious that the school did not force them to wear uniforms.
"I just like wearing school uniforms, and they are very beautiful, blue and white, don't they look good?" Bai Yujie said with a smile after seeing Yang Wendong, and pushed a bottle of Coke over to him.
Yang Wendong took the iced Coke. It was a bit hot outside just now. He opened it and took a sip. Then he said, "This school uniform is just average, but it looks pretty on you."
"Mr. Yang is really good at talking." Bai Yujie smiled and said, "What do you want to eat? We can go directly to the front and get it. It's mine."
“Okay.” Yang Wendong was not polite. Those who can study at the University of Hong Kong generally have good family conditions.
In this era, or even earlier in ancient times, anyone who had the opportunity to study formally was at least from a well-off family; and university was the last stop, unless they were from a particularly poor family with government support.
However, Hong Kong does not have such a policy at all now. The Hong Kong government absolutely advocates the "free market principle" and does not even care about banks' investment in real estate, let alone spending money to support poor families. Even if it is for a political show, it will be given to some foreigners.
The main point is "only make money, not spend money".
The food at HKU is quite good, a bit like the fast food model in the previous life. Students pay with meal tickets with stamps. Yang Wendong even tried to buy food with his own money, but was rejected and had to buy meal tickets.
Bai Yujie saw what Yang Wendong was thinking and said with a smile, "Cash is not allowed in the cafeteria. If you are caught, you will be fined. I heard that this rule was made by the economics professor of our school."
"That makes sense. If you give in cash, the person collecting the money will just put it in his pocket and no one will know about it." Yang Wendong nodded.
He followed Bai Yujie with a plate of food in his hand, seemingly attracting the attention of several nearby classmates.
Yang Wendong added: "It seems that you are very famous in school? Many people are looking at you."
Bai Yujie turned around with a strange expression, "No, it's my sister who is more famous. Her grades are very good. Even the professors at the University of Hong Kong suggested that she go to the UK or the US to study economics."
"Study abroad?" Yang Wendong suddenly thought of something and asked, "You are twins and the same age, but aren't you only a freshman?"
Bai Yujie seemed a little helpless and said, "My sister had very good grades when she was young, much better than me, so she skipped a grade. She is a sophomore this year and can consider going to Europe and the United States to take the postgraduate entrance examination."
"Oh, that's awesome." Yang Wendong smiled. Those who can skip grades in school are generally quite awesome.
There are two universities in Hong Kong today, the University of Hong Kong is a three-year university and the Chinese University of Hong Kong is a four-year university.
After studying at the University of Hong Kong for two years, you can apply to study further in Europe and the United States, but the prerequisite is that your family is wealthy.
The economy of Hong Kong at this time was far behind that of Europe and the United States. Coupled with the tuition fees of European and American universities, the financial burden for the locals was comparable to buying a house for the Chinese in previous lives.
After sitting down at the same place, Bai Yujie said, "Actually, the one who recovered as mentioned on the phone before was also my sister."
"Really?" Yang Wendong was really surprised. It was quite good that he could recover in such a short time.
"It's just that she's a little obsessed with it now." Bai Yujie shook her head and said, "She only restored one side of the Rubik's Cube many times, but she hasn't figured out the pattern of how to restore one side every time."
Yang Wendong nodded and said, "It is indeed difficult. It is good enough to be able to recover a little bit by chance."
Occasional recovery is one thing, being able to recover multiple times is another, but finding a way to ensure recovery every time is extremely difficult.
Even if it was just one side, in the original history, after the Rubik's Cube became somewhat famous, it took a long time for some mathematicians to find a way to solve it.
Bai Yujie asked again: "Mr. Yang, the ability to restore this Rubik's Cube must be a very complex mathematical technique, right? Just like cracking many codes?"
"It's a bit similar." Yang Wendong nodded.
"Sure enough, my sister was right." Bai Yujie said with a smile: "Forget it, let's not worry about my sister for now. As a student of the journalism department, I want to interview the person who invented this Rubik's Cube. Mr. Yang, is it okay?"
About the title of the book, I know there is controversy, but this is the editor’s suggestion. The previous name was too literary and no longer suitable for the market.
The data from the past two days can also prove this point. It is much better after the name change.
(End of this chapter)