Chapter 165 Wealth Statistics in 1959
Chapter 165 Wealth Statistics in 1959
On January 1, Yang Wendong met with Zheng Zhijie again to discuss the subsequent matters of the real estate investment company. Although it was just a small trial investment in the real estate market, Yang Wendong still attached great importance to it.
At the same time, he also introduced the main persons in charge of several of his current industries to each other.
Today, his industries can still help each other to a certain extent, especially the media sector, which can also provide advertising for real estate companies.
At noon, everyone went to a nearby hotel to have a sumptuous lunch and then went home.
After returning to the office of Changxing Industrial, someone knocked on the door: "Knock, knock, knock~"
"Sister Wang, please come in." Yang Wendong said with a smile after seeing the person coming. The person was Wang Fengzhi, the head of the Finance Department of Changxing Industry.
After Wang Fengzhi came in, she smiled and said, "Hello, Mr. Yang."
"Come, sit down." Yang Wendong said, pointing to the chair opposite.
"Thank you." Wang Fengzhi sat down and said, "Mr. Yang, during this period, I have made a detailed arrangement of all your assets and accounts according to your requirements;
This is the detailed table data, please take a look. "
"Okay, thanks." Yang Wendong smiled and took the document from Wang Fengzhi.
If 1958 was the first year of Yang Wendong's entrepreneurship, then 1959 was the first year of his rapid development.
This year, Changxing Industrial's post-it note factory was successfully put into production and has begun to gradually meet the needs of the US market. At the same time, sticky hooks, spin mops, etc. have also begun to be launched on the market.
The prosperity of industry also brought him enough funds, allowing him to set up newspapers and radio stations in Hong Kong and even build a small property directly in Central.
As the business expands, and many of these businesses rely on bank loans, the accounts of the entire group need to be carefully reviewed every once in a while.
Wang Fengzhi continued, “At present, Mr. Yang, your largest asset is still Changxing Industry. The net profit of the entire Changxing Industry is estimated to exceed 80 Hong Kong dollars this month;
The main product that is relied on is post-it notes, and the sales of sticky hooks in Japan and Southeast Asia have also begun to bring in high profits. The sales of spin mops are much less, and the sales of sticky mouse boards are also a little worse because it is winter in the northern hemisphere now. "
Yang Wendong glanced at the figures on the data and asked, "In other words, by next year, the net profit will exceed one million Hong Kong dollars a month?"
"Yes, there will definitely be no problem." Wang Fengzhi continued, "It may even be more than that, because Mr. Wei is already planning the construction of the second phase of the factory. When it is completed in the middle of the year, the production capacity of sticky notes will be doubled, and it can also supply the European market, that is, this model, and the profit will be doubled.
As for adhesive hooks, we don’t invest ourselves, but the suppliers we work with have also begun to add equipment and even build new factories. The speed of this area will be much faster than our Phase II factory. The profit of adhesive hooks will more than double in the future.”
"Well, OK." Yang Wendong smiled, then looked at the expense items in the information in his hand and asked, "Changxing Industry is quite profitable, but it also spends money quickly in other areas."
Wang Fengzhi continued, "Mr. Yang, the Hong Kong Chinese Daily News is not yet fully profitable, but sales are gradually increasing. I think it will be profitable in the future.
As for the radio station, I don't know. It hasn't been opened yet, so I can't make any judgment.
The remaining payment is the bank’s liability.”
"Yeah," Yang Wendong nodded, looked at the data, and said, "We still owe a total of 820 million Hong Kong dollars in foreign debt? Including the US 3M?"
"Yes, this is the current amount." Wang Fengzhi replied, "3M's debt is a one-year debt, not the kind of monthly repayment required by banks, so it needs to be paid in April this year, or 4M can deduct it from the purchase amount. This part, a total of 3 US dollars, is about 53 million Hong Kong dollars.
We also owed HK$280 million to Liu Chong Hing Bank and HK$200 million to Hang Seng Bank. However, we have been paying back the money during this period and currently have HK$390 million left.
In addition, for the Hong Kong Chinese Daily News building, we borrowed a total of HK$95 for the land, building construction and renovation. We have paid back a little bit of this, but not much. Currently, we have HK$90 left.”
"It's not a small amount." Yang Wendong said with a smile. 820 million Hong Kong dollars can be said to be a huge sum of money.
Wang Fengzhi added: "But we also have HK$400 million in our account. A large part of it is the profit of Changxing Industrial during this period, and the other part is the original loan, which has not been fully used up."
Yang Wendong nodded and said, "So even if we don't consider further expansion of the business, we can pay off all the loans in about half a year?"
“Yes.” Wang Fengzhi confirmed: “From this perspective, our debt ratio is not high;
And I am only counting the actual assets of the company. The intangible assets, such as patents for sticky notes, sticky grooves, and mouse traps, are worth hundreds of millions of Hong Kong dollars at the current trend. "
"There's no need to count these. For the time being, I won't consider using their value." Yang Wendong shook his head.
Then he said, "Lao Wei is also going to borrow money to develop the second phase. I am also going to enter the real estate industry. The demand for banks will increase. What do you think?" Wang Fengzhi thought for a while and said, "Relying on money from banks is the way to develop, and it is also the norm. However, no matter how many businesses cooperate with banks, the accounts must be separated.
Changxing Industrial will belong to Changxing Industrial, and your new real estate company will belong to a separate company. A separate amount of capital will be injected into it, and then it will develop independently and become financially independent. "
"Yes, that's right." Yang Wendong nodded and said, "I actually have this idea. The accounts of the Hong Kong Chinese Daily are basically sorted out by the people you sent. Now that their scale is getting bigger and bigger, they should be independent.
Real estate companies will be larger in the future and different from factories, so they must be separated.”
"Yes, all subsidiaries have to have independent finances. This is also the normal operating method of many groups in Hong Kong." Wang Fengzhi nodded and said, "I heard that some real estate companies have independent operations for each real estate business, or some shipping companies have independent accounts for each ship."
"I've heard of that, too." Yang Wendong paused, then said, "Sister Wang, it's fine for each company to have independent finances, but I also want to set up a general finance department to control and supervise all subsidiaries. What do you think?"
After listening to this, Wang Fengzhi said, "That's fine. The management of each company can be handled by the people in the branch companies, but the auditing authority on the financial side should belong to the parent company."
Yang Wendong smiled and said, "Yes, so I would like to ask Sister Wang to be in charge of this department, what do you think?"
As the company grows, the head office must have means of control over its subordinates, such as the most important finances and personnel. In this regard, the branch companies will only be given certain small rights, and larger matters will still be decided by the head office.
In the future, there will even be monitoring measures at the security and anti-corruption levels to ensure the head office's control over the branch offices and prevent the people below from becoming too powerful and becoming too far away from the emperor.
But it’s still early, and several branches have just begun to be established, so we need to get the finances under control first.
In terms of personnel, Yang Wendong will delegate some power in the short term, because he does not currently understand the relevant expertise. In the early stages, he will let professional managers develop on their own.
Once we have reached a certain scale and become self-sustaining like Changxing Industrial today, we can deal with this matter.
Wang Fengzhi was delighted after hearing this. She knew the future potential of the company, but she still said, "Thank you Mr. Yang for the promotion. I am willing to do it. However, Changxing Industrial still needs some time to hand over."
"Well, of course." Yang Wendong nodded and said, "At present, the company's main business is still based on Changxing Industrial's factory. In the short term, you can still stay here;
When the other businesses grow big enough, I will set up a group company, and all the departments of the head office will move out separately.
But this will take some time. During this time, you should focus on training the successor of Changxing Industrial's finance department, and also select the finance department of the future group."
"Okay, I understand." Wang Fengzhi said happily.
Yang Wendong looked at the information in his hand and asked, "Your valuation of Changxing Industry alone is 1 million Hong Kong dollars?"
Wang Fengzhi smiled and said, "Yes, if the second phase is completed, our monthly profit can be as high as 150 million Hong Kong dollars. Even if we deduct a lot of other expenses, the annual net profit will be at least 1500 million Hong Kong dollars;
According to the general stock market's net profit and market value, a value of 100 million is not a small amount, and this does not include the value of several patents. "
"Well, the price of sticky notes is indeed much higher than this." Yang Wendong smiled and said, "Remember, the company's future revenue is top secret. Except for a few people in the finance department and people in charge like Lao Wei, no one else can disclose it."
In the past, it was not an exaggeration to say that the core industries of giant companies like 3M were worth hundreds of millions of dollars. However, times have changed after all, and we do not have the channel control that 3M does, nor do we have the support of a great empire like the United States.
However, the market for Post-it Notes has not been fully developed, because even in California and Hong Kong where the market has been fully developed, there are still many people who do not use Post-it Notes, which will require further marketing in the future to expand the market.
Wang Fengzhi agreed and said, "Don't worry, Mr. Yang. As a financial officer, I know the confidentiality regulations. Even within our financial department, several core personnel only know their own business.
They may know that the company is very profitable, but they don’t know how much.”
"Okay." Yang Wendong nodded.
It is indeed impossible to hide some things from some people within the company. The only thing we can do is not let them know the core data.
PS: Please give me a monthly ticket
(End of this chapter)