Chapter 220 News from Walmart

Chapter 220 News from Walmart

Chapter 220 News from Walmart
"Okay." Yang Wendong naturally agreed: "As for the price, I will send someone to negotiate with you, but it can only be based on the current market price."

If it was before the acquisition war, the stock price would have risen quite a bit, and the acquisition of Yang Wendong would have cost a lot more at that time; but Yan Chengkun did not seize the opportunity, so he can only bear the current price.

Even because the stocks that had been bought with large amounts of borrowing were cut in half at once, the loss was enough to destroy the wealth accumulated by the Yan family over decades.

"Okay." Even though Yan Chengkun was unwilling, he knew that it was impossible to make the deal at the previous price.

Afterwards, Yan Chengkun left dejectedly.

Huang Yaonan sighed and said, "This Yan Chengkun, today is the first day that he has experienced the same feelings as my father and I did. We have lived like this for decades, and my father died of depression because of this."

"That's how the business world works." Yang Wendong said with emotion, "After this incident, unless another powerful figure emerges, the Yan family will at best remain at an average level of wealth."

Starting a business is not easy in itself. For most people who start a business, the final outcome is heavy losses or even bankruptcy.

Those who can start a second business after bankruptcy or huge losses are even rarer. Even among so many business elites in the mainland in the past, there are only a handful of them, the most famous of whom is Shi Yuzhu.

Huang Yaonan said: "Yes, this can be regarded as revenge for my Huang family. Thank you Yang Sheng."

"Yeah." Yang Wendong said again: "What happened in the past is in the past. Don't think too much about it. Next, we still have to consider what the future of China Bus should be."

Although he does not interfere much in the operation of the companies below, he still has to ask about their development direction.

Huang Yaonan replied: "I have also thought about this during this period. China Motor Bus is different from the various industries under your control, Mr. Yang. It is a regional monopoly enterprise. This is its advantage, but it is also a limitation. China Motor Bus can only develop in Hong Kong Island;

As for outside of Hong Kong, the possibility of development is not great. Every country has its own bus company, and even international companies generally do not engage in this kind of business. "

"Yes, China-Bus is unlikely to expand overseas." Yang Wendong naturally knew this and said, "So the focus is on the island. The first thing is to do our job and make the greatest efforts to help Hong Kong citizens solve their travel problems. This is the basic condition for us to obtain exclusive operating rights."

There are many monopoly companies in Hong Kong, but rights also mean responsibilities. Any sole proprietorship must provide relevant services well. If it causes dissatisfaction among a large number of citizens, the Hong Kong government will naturally deal with this company.

Therefore, even if he gets the power supply company in the future, he cannot do whatever he wants. The reason why Li Jiacheng could occasionally do so in the 90s was because he had a tiger skin behind him, and the British Hong Kong government at that time did not want to mess around anymore.

"Don't worry, Mr. Yang. When our Huang family founded the bus company, my father also sincerely wanted to solve the public's travel problems." Huang Yaonan nodded and said, "My father also taught me when he was alive that we businessmen should make money, but we also need to make money while benefiting others. This is the long-term business model."

"Well said." Yang Wendong nodded, and then said: "The second thing is to stockpile as much land as possible in Hong Kong Island. I am very optimistic about the future real estate market in Hong Kong."

CMB, which is trapped in the business of Hong Kong Island, is indeed far less promising than real estate, shipping, or even media. The best model is to use its own advantages to purchase land directly.

Under normal circumstances, for example, Changxing Real Estate Company, the land it buys from the Hong Kong government is bound by a development mission, and it is absolutely not possible to buy it and then wait for it to appreciate in value. If they want to do so, they can only purchase some old properties, but these are not easy to buy, especially those in prime locations.

However, China Motor Bus can apply to the Hong Kong government for land in the name of building related supporting services. Generally, as long as the conditions are reasonable and the normal payment is made, they can buy the land. After getting the land, they can just build a simple supporting house, which is equivalent to hoarding land.

Huang Yaonan said, "Don't worry, Mr. Yang, I know what to do, and I will try to apply for the largest area for any piece of land."

"Well, OK." Yang Wendong nodded and said, "If you don't have enough money for the land purchase, you can borrow from me, or you can form a joint venture with Changxing Real Estate."

"Understood." Huang Yaonan agreed, and then asked: "Mr. Yang, if you acquire Yan Chengkun's shares, your shares may exceed the proportion allowed by the Hong Kong Stock Exchange."

"I know." Yang Wendong added, "We can just increase capital and expand shares when the time comes. Yan Chengkun just purchased a large number of British buses and expanded routes, so the company's funds are not enough.

After financing, it will be much easier for you to manage in the future.”

"Okay." Huang Yaonan nodded: "In this case, there won't be any big problems."

Yang Wendong asked again: "Do you know if the bus Yan Chengkun bought this time has air conditioning?"

When he was in Hong Kong for a few years and started his business in the early days and had not yet bought a car, he drove the bus a few times. It was summer at the time and the bus was very hot inside.

Now that I have joined the bus company, I should do some good things to serve the citizens.

Huang Yaonan shook his head and said, "No, China Motor Bus and Kowloon Motor Bus all buy their buses from the UK, and the temperature in the UK is not high in the summer, so the local automobile industry basically does not have air conditioning."

Yang Wendong asked: "Can we only buy it from the UK?"

"There is no rule, it's just always been like this," said Huang Yaonan.

Yang Wendong said: "Next time when we make purchases, we should ask Japan. They also have automobile manufacturing industry there, and it is close to us. The price of cars is likely to be cheaper, so we can buy those with refrigeration and air conditioning."

"Okay." Huang Yaonan nodded and agreed.

Another week later, Wang Lianhua's team reached a deal with Yan Chengkun to buy 320% of the shares held by the Yan family for HK$20 million, while Yan Chengkun insisted on retaining the remaining 20%.

Yang Wendong did not force it, and because he held more than 50% of the stocks, he subsequently applied for additional share financing in the stock market, which could also increase the originally exhausted liquidity.

At this point, the acquisition of China Bus came to an end. Yang Wendong secretly controlled this means of transportation that monopolized half of the people in Hong Kong.

February 7:
Geely Building:

This was also Yang Wendong's first time here. Zheng Zhijie, who accompanied him, introduced the planning of each floor to the boss.

"Not bad. Although the area is not very large, the planning is reasonable." Yang Wendong praised, "From this point of view, in the next two years, this Jili Building will be large enough for you and Changxing Shipping to use together."

Geely Building is the second self-built building of Changxing Real Estate. It is much larger than the Hong Kong China Building. It is also the office space prepared by Yang Wendong for his real estate company and shipping company. The previous Hong Kong China Building was too crowded inside.

Zheng Zhijie said: "Yes, I actually wanted to use it for at least 5 years, but now Changxing Real Estate is developing too fast. Although most of it is still for rent collection, it still needs a lot of people;
In terms of residential business, I have acquired three more plots of land and plan to build fully furnished properties.”

"Well, okay, you can handle this matter." Yang Wendong did not ask for any more details. All the follow-up information would be provided to the headquarters in the form of information.

Then he said, "I plan to leave Changxing Building to the group headquarters. You will have offices there, but don't go there for business."

Cheung Hing Building, formerly the Liao Chong Hing Bank Building, is a 25-storey building located on Des Voeux Road in Central, of which the bottom three floors are shopping malls.

The 22-story office building has an area of ​​more than 1.5 feet (1500 square meters) on each floor, which is still a bit large for the current Changxing Group headquarters.

However, he has no plans to rent it out or give it to existing branches, because he knows that his future industries will inevitably develop rapidly, and the current large headquarters building may not be enough in a few years if he brings in these branch businesses.

Zheng Zhijie nodded and said, "Okay, I understand. If there is not enough space in the future, I will build another building."

"Okay." Yang Wendong nodded.

The two of them soon arrived at Yang Wendong's office. Now, wherever they need to work, they will have their own office, which is convenient for them.

Zheng Zhijie said: "Mr. Yang, the core of the company's real estate business is residential projects and property rental. Both of these are easy to deal with now, and there is no big problem;
But Lane Crawford was holding out for a 5% discount on the department store location below Changxing Building, which made it very difficult for us to negotiate.”

"5% off? Why doesn't he just go and grab it?" Yang Wendong was speechless after hearing this.

Some shopping malls offer discounts to attract big brands. The more remote the place, the bigger the discount, and some stores may even be free. But Changxing Building is in Central, so there is no comparison at all. It is good enough to offer some discounts.

Zheng Zhijie said: "Lane Crawford is a well-known shopping mall in Hong Kong. Many people even choose to go to Lane Crawford to buy things. This may be their confidence."

Yang Wendong asked again: "Are there any other options?"

He had thought about opening a supermarket before, but has not yet made up his mind, so he has not completely stopped attracting investment in shopping malls.

"Lane Crawford is the best in Hong Kong," said Cheng. "Or, we can introduce some Japanese department stores. There are also several of these Japanese department stores in Hong Kong, and they are doing pretty well."

"Forget it, there's no need to let the Japanese make this money." Yang Wendong rejected.

He had no objection to doing business with the Japanese, but he either needed to buy their cheap high-tech products or enter his market.

There is no need to give them this kind of business that is obviously profitable without doing anything.

Zheng Zhijie nodded and said, "Then I will discuss it with Lane Crawford."

"When will Changxing Building be completely completed?" Yang Wendong asked again.

Zheng Zhijie replied: "The building will be topped out by the end of this year, and the interior decoration is expected to be completed in April or May next year. The shopping mall downstairs will open earlier, and it is estimated that it will be open by the end of October."

Yang Wendong thought for a moment and asked, "Have you ever heard of the word supermarket? The Chinese name is supermarket?"

"Supermarket? Never heard of it." Zheng Zhijie shook his head.

Yang Wendong explained: "This is a business model similar to that of a department store, but the difference is that"

The cost of information transmission in this era is very high. If something from Europe or America is not very famous, it is difficult for the outside world to know about it.
This is also the reason why many people can make money by taking advantage of information asymmetry, including in the mainland after the 80s.

After listening to the general idea, Zheng Zhijie said, "The biggest problems with this business model are probably supplier management, cargo storage and transportation, and cargo information recording."

"Yes, that's a good point." Yang Wendong praised, "But as long as the scale is expanded, the cost can be reduced to a much lower level than department stores in theory, so I prefer this business model."

Zheng Zhijie nodded and asked, "So we need to run this supermarket business in Hong Kong? In the shopping mall of Changxing Building?"

"I have this idea." Yang Wendong said, "But this is a new industry, and there shouldn't be many people familiar with it in Hong Kong. I'm also planning to go to the United States to take a look.

There are many such companies in the United States, and I am optimistic about a few of them. I will visit them and look for opportunities to invest and learn from them.”

The supermarket company in the United States is naturally Wal-Mart, but Wal-Mart has not been established yet.

As early as two years ago, Yang Wendong arranged for his colleagues in the United States to keep an eye on the supermarket industry and collect all small-scale information in the supermarket industry. Within half a year, they found Yang Wendong's target: Sam Walton.

But at that time, my funds were limited, and Walton had never been short of funds, so I didn't bother them.

Recently, news came from the United States that Walton's company was facing considerable financial difficulties. Coincidentally, the China-Pakistan acquisition in Hong Kong had been completed, so he prepared to go to the United States.

As the world's largest supermarket in the future, it is still worth his personal trip to the United States.

Zheng Zhijie thought for a while and said: "There is another problem in opening such a supermarket, that is, the domestic product stores in Hong Kong are willing to operate at a loss in order to help the mainland earn foreign exchange.

A lot of Hong Kong’s retail industry has been affected.”

"Chinese brand store?" Yang Wendong also knew this brand. He had also bought things there. They were indeed very cheap. He then asked, "But there are many other normal retail stores or department stores in Hong Kong. How do they avoid competition?"

Zheng Zhijie explained: "It should be because of the staggered locations. The mainland is behind the Chinese stores, but it is not enough to open stores in every location in Hong Kong. It would be good if we can have a small half of them.

Especially in places with good economies, the rent is too high. Once a Chinese-made store opens here, it may not make money and may even have to pay for foreign exchange.”

"Well, then it won't be a problem for us to open supermarkets in Central and Admiralty." Yang Wendong asked again: "Can we buy goods from the mainland?"

"Sure." Zheng Zhijie said, "The Chinese goods store itself was opened by China Resources and several Hong Kong investors, not solely owned.

China Resources has a huge business in Hong Kong. It is impossible for them to only take care of their own few enterprises. They will also accept all other retailers who want to buy mainland products. "

"That's fine." Yang Wendong was no longer too worried.

Historically, supermarkets first appeared in Hong Kong in the late 60s. Although they were small in scale, they were already in their infancy.

By the 70s, ParknShop and Wellcome had taken shape, and later, relying on the two foreign companies behind them, they became the two future retail monopoly giants.

I was only less than ten years early, so the problem should not be too big, especially since I could buy the property first. Then there would be no pressure of rental and it would be much easier to run the business.

The only trouble is the supply of goods, which will definitely be difficult in the early stage. This is also the difficulty of chain supermarkets. Unless you only run a real estate rental company, you will encounter many early problems no matter what industry you start.

"Okay, do you need me to accompany you to the United States?" Zheng Zhijie asked.

Yang Wendong shook his head and said, "No need. Just focus on the real estate business here and keep an eye on China-Pakistan. My trip to the United States won't be long."

A week later, at the Yang family villa in Deep Water Bay.

Yang Wendong held Yang Zhiwen, who was able to stand up, and used a few small toys to tease him.

Su Yiyi came in with a suitcase and said, "Brother Dong, your clothes are ready, and there are some food in it."

"No need to prepare too much. I can buy the same in the United States." Yang Wendong smiled and said, "Are you afraid that I'm hungry?"

Su Yiyi said, "That's not the case. Miss Bai is traveling with you, so you won't be hungry anyway."

"Are you jealous?" Yang Wendong pulled Su Yiyi over and said with a smile.

Su Yiyi shook her head and said, "That's not the case. I think we have been married for almost a year, and you should give her a name, otherwise it will be bad for both you and her."

"Well, it's still my director Yi Yi." Yang Wendong said with a smile.

Su Yiyi had known about Bai Yushan's existence for a long time. Fortunately, in Hong Kong at this time, there was no need to set up a Shura Field, and everything was completely legal.

Not to mention the super-rich, even many working people have two or three wives. This is normal.

Su Yiyi added: "However, when Zhiwen is a little older, you have to take us to the United States to play. I haven't been to the United States yet, right?"

"Don't worry, no problem." Yang Wendong agreed readily.

PS: Please give me a monthly ticket
(End of this chapter)