Chapter 262 Amazing Annual Profits

Chapter 262 Amazing Annual Profits

Chapter 262 Amazing Annual Profits

Zheng Zhijie went on to say: “There are some other properties, such as those acquired for Carrefour and Yiranzhijia, which are also managed by these two companies.

The Queen's Road site No. 2 will also be managed by the Four Seasons Hotel in the future, and once all the sister companies are in business, the debt will also be transferred from Changxing Real Estate."

"Okay." Yang Wendong nodded and said.

The initial investment in the self-owned property was huge, basically all of which was funds mobilized by Yang Wendong from Changxing Industrial. The appreciation part was not included in the annual profit, and he could only wait until the cash was realized. After all, he did not need to play these word games to boost the stock price.

The properties purchased for sister companies will be owned by these companies in the future, but the debts will naturally be gone as well. Even if there is a shortage of funds in the future, it will be the boss Yang Wendong who will mobilize additional funds to help.

Zheng Zhijie then said: “We also have some small properties in Hong Kong Island and Tsim Sha Tsui, mainly street-side shops, totaling about 20,000 square feet;
These are all the properties of Changxing Real Estate. ”

"Okay, we will continue to acquire shops along the street and do it this year." Yang Wendong paused and said, "As long as you find a suitable one, you can come to me for funding."

The special thing about street shops is that they are a very scarce and almost unincreasing resource, because commercial complexes can be built in the suburbs, but the number of shops in the city center or town center can never be increased.

With regard to scarce real estate resources, his principle is to make large-scale acquisitions in 66 and not to give up at other times, unless it is on the eve of a crash, then it may not be necessary.

The so-called real estate crash in 66 may seem terrifying, but compared with the dozens of times increase in land prices in the future, it is just a small fluctuation in the early stage and is not worth mentioning.

It’s just that my funds are limited, so the most suitable investments now are these high-quality assets.

"Okay." Zheng Zhijie agreed.

Yang Wendong added: "Everyone, I am optimistic about Hong Kong's economy, especially real estate. Although non-real estate businesses are not allowed to participate in real estate development, as long as you have the need to purchase properties, you can bring it up."

It is most convenient to hoard land by taking advantage of different business development needs, especially since you can apply for land from the Hong Kong Government. The Hong Kong Government will only agree if you have business needs.

"Understood." Several core business leaders also agreed.

Yang Wendong added: "Now that we have discussed real estate, the next thing is shipping."

Zheng Yuhua, who is in charge of shipping, said: "Mr. Yang, we currently have a total of 8 cargo ships sailing at Changxing Shipping, mainly for Changxing Industrial's trolley cases, on routes to Europe, America and Japan;
Last month, we signed cooperation agreements with several shipping companies in Europe and Australia to purchase a total of 19 cargo ships. These ships will undergo an overhaul and full inspection at the official docks in their original locations. If there are no problems, they will arrive in Hong Kong in March or April.

In addition, in December last year, we signed a contract with Japan's Mitsubishi Shipbuilding for five new cargo ships. According to the contract, the first ship will be delivered in October this year, and the others will be delivered in the next six months.

If we do not consider purchasing more second-hand ships this year, by that time, we will have 32 cargo ships with a total of about 47 tons of shipping space. "

This meeting will not talk about profits, but only about the specific development status of each company. These things are actually not a secret. Not to mention the top executives, even a diligent reporter can find out the general situation.

"We will continue to purchase second-hand cargo ships." Yang Wendong added, "Ms. Zheng, your next focus will be to train team members and prepare for more cargo ships.

In addition, we need to pay more attention to the Kwai Chung Dockyard. After the first dock is built, we will build the second and third docks to ensure that we have sufficient maintenance capabilities in the future."

Although the future of shipping will not be as evergreen as real estate, the degree of short-term profit is still higher than that of real estate, especially the ability to make large amounts of direct cash.

Even if a shipping crisis breaks out in the future and the profits are far less than before, the "big orders" it carries are enough to make shipowners VIPs from various countries, which is something real estate can never compare to.

As for Kwai Chung, its value is even higher. The land there is worthless now, so anyone can build a dock or buy a warehouse. Once the container terminal is put on the agenda, it will be difficult for other shipyards to come here. In the original history, the shipyards of Whampoa and Swire were moved to Qingshan.

"Understood, Mr. Yang." Zheng Yuhua agreed and said, "I will continue to follow up on these two matters."

"Yeah." Yang Wendong nodded, then looked at Qin Zhiye and said, "Old Qin, tell me about your business as well."

"Yes, Mr. Yang." Qin Zhiye said, "Compared to you, our media company is much smaller. Currently, the daily sales of our Hong Kong Chinese Daily News are about 1, and the Oriental Daily News is currently 1.5."

"Very good." Yang Wendong smiled and said, "Media itself is not used to make big money. Several of our internal businesses, real estate, supermarkets, and even shipping companies in the future, will also rely on you to solicit cargo orders."

"I am very happy to serve our brother company." Qin Zhiye also said: "And it is a relatively stable large order for us."

Yang Wendong nodded and said, "Maximizing the utilization of internal resources is what I hope to see the most. As for newspapers, Oriental Daily still has great potential. I hope to see its daily sales reach 3 as soon as possible."

The best-selling newspaper in Hong Kong now has a daily sales of about 3, which is basically the limit for a city.
However, as the economy improves, this limit will gradually increase.

"Okay, Mr. Yang, don't worry, the Oriental Daily has actually been showing an upward trend." Qin Zhiye said with a smile: "It is estimated that in a few months, it will exceed 2.

In addition, we have also reached a cooperation with the Bank of East Asia to assist local people who meet the Hong Kong government's requirements in Kowloon to apply for new newsstands, which will also benefit the sales of Oriental Daily News and even Hong Kong Chinese Daily News. "

"Well, OK." Yang Wendong nodded. He also knew about this matter. Then he asked, "What about the radio station?"

Qin Zhiye replied: “The number of radio users in Hong Kong today is estimated to be around 40. Our average daily number of users is 10, which is basically the limit;
If we want to increase the quantity, we may have to wait for the market to expand. The price of radios in Hong Kong is much cheaper than before. However, the price of transistors in Japan may increase in the future, and we are not sure how much impact it will have.

"I'm already preparing for this." Yang Wendong said, "I will import a transistor production line from the United States. When Hong Kong is able to produce it itself, the price will be cheaper than the previous Japanese products."

Wang Zhiqun, whom he had interviewed before, has officially joined his own company, Honor Electronics, but he did not return to Hong Kong. Instead, he is looking for a suitable production line and related talents in the United States.

This is not an easy task, so it will take some time. It will take more than a month to gather all the people and materials.

Qin Zhiye said: "If this is the case, coupled with Hong Kong's current economic development speed, the market for radios will inevitably grow rapidly in the future."

"That's not necessarily the case. Maybe many people will like watching TV more." Yang Wendong said with a smile.

When the economy improves, radios will not be eliminated, but they will gradually be replaced by televisions.

Qin Zhiye replied: "It's possible, but the cost of ATV is still too expensive, and the TV itself is even more expensive, so in the short term, the impact will not be that big."

"Well, let's talk about this later." Yang Wendong nodded. If TVB doesn't come out, radio will definitely still be the mainstream among people.

Otherwise, not many people would be willing to pay HK$25 a month for limited television.

Then he said: “Well, this is basically the situation for Changxing Group’s four main businesses.

Let everyone come and listen, and also know the development status of the group. In the future, please try your best to cooperate with each other and develop together.

In addition, there are Liu Sheng's Carrefour supermarkets, the future Honor Electronics Company, Four Seasons Hotel, etc., which will also be the main business of the Future Group, but they are just starting out now, so there is nothing much to say. "

"Okay/got it." Everyone replied.

At the same time, he looked at Liu Huayu, who had not spoken a word. Carrefour Supermarket was established last year by the boss with the resources of the entire group. It goes without saying how important it will be in the future.

Yang Wendong paused and said, "There is one more thing. You have been working at Changxing Group for several years. Your salaries will increase after the new year. The finance department will inform you of the specific amount by letter."

"Thank you, Mr. Yang." Several people said with a smile.

Working for a high position is also for personal gain, and a salary increase will naturally make everyone happy. Yang Wendong added: "In addition to salary, there will be some welfare rewards. You also know that I have some villas in Happy Valley, you can live there for free, and there will be special cleaning staff to save you from the troubles of life."

"Thank you, Mr. Yang." The people who were happy just now were even happier at this moment.

Yang Wendong smiled again and said, "If you run the business well, there will be more benefits in the future."

He will not be stingy with those who help him, and will give them the high salary and benefits they deserve.

And now they only grant the right of residence, not the property right.

"Okay." Everyone agreed.

"Then let's go." Yang Wendong said again: "Sister Wang, please stay."

After a while, Ms. Wang from Finance was the only one left in the meeting room.

Yang Wendong asked: "Sister Wang, the company's current major businesses are basically able to achieve self-profitability, right?"

Wang Fengzhi thought for a moment and replied: "Changxing Industry and Changxing Media have already achieved self-profitability. If Changxing Real Estate is spun off from Changxing Properties, it will also be profitable.

The same is true for Changxing Shipping. Excluding the latest new and old ships, the eight ships before that have also achieved positive profits.”

"Well, large investments don't need to be taken into account. Just calculate normal depreciation." Yang Wendong nodded.

"Okay." Wang Fengzhi took out another document and said, "This is the profit list of several business units of the company that I compiled. It does not take into account the increase in property value last year and the data after the larger investment."

"Let me take a look." Yang Wendong said with a smile. In fact, he knew the approximate data at the beginning of the year, but the finance department must calculate it clearly before submitting a formal report.

Wang Fengzhi explained: "This first page is the list. Last year, Changxing Industrial's net profit was 5126 million, Changxing Real Estate's profit was 967 million, Changxing Shipping's profit was 366 million, and Changxing Media's profit was 122 million.

However, we also invested a lot last year, including the industrial park and land in Kwun Tong, the land of the Four Seasons Hotel, 24 new and old cargo ships, and the dock in Kwai Chung. Although we tried our best to use the bank's funds, we also invested nearly 4000 million yuan ourselves. "

"The data is really good." Yang Wendong said happily: "If these data are really revealed, it will probably be enough to make hot news again."

Tens of millions decades later will be nothing at all, and may just be a small fortune for many people.

But in Hong Kong in the 60s, it was definitely a shocking figure. If it was a company's annual profit, it would be enough to make many people drop their jaws.

Just based on housing prices, a thousand square feet luxury house in Central would cost only about HK$1000 to HK$. In other words, the annual profit of the Changxing Group is enough to buy luxury houses in Central, which is equivalent to tens of billions in a few decades.

Even last year, the average wage in Hong Kong was only HK$150, and clerks in office buildings in Central only earned three or four hundred, while many ordinary people probably only earned around 100.

Wang Fengzhi said: "Yes, judging from the listing data of Jardine Matheson, they only make a profit of more than 1 million yuan a year, and Swire only makes to million yuan."

"There are tricks going on with these listed companies. We can't just look at the financial reports." Yang Wendong shook his head and said.

There are so many ways that listed companies can manipulate their business. Even an ordinary person knows that after going public, they can use other companies, through cooperative relationships, to take advantage of the listed company's profits and suck blood from it.

It's not just Hong Kong that does this. Many listed companies around the world use stock market financing to raise funds on the one hand, and on the other hand they can use various means to make profits for their wholly-owned companies.

Moreover, all of these are completely legal. Even if the Independent Commission Against Corruption came ten years later, there would be nothing they could do.

It can also be said that this is a tacit understanding in capitalist society.

"I know, but it can be used as a reference." Wang Fengzhi said with a smile: "If we go public, the market value is estimated to be hundreds of millions."

"Let's not consider the listing for now." Yang Wendong rejected it.

If it is a normal company, it can naturally consider listing for financing when it has developed to a certain level.

However, the core of Changxing Group's multiple businesses is not the existing assets, but some future information that the founder knows in his mind.
It would be foolish to go public in the early stages of development. You only need to consider this matter in the future when the prophet's golden finger is no longer of much use.

Wang Fengzhi added: "Mr. Yang, although we are not listed, our export scale, property scale, and shipping scale cannot be concealed, so those who are interested can still know the general situation."

"I didn't intend to hide it." Yang Wendong said nonchalantly, "If outsiders know about it, they will know about it. We are a business that is getting bigger and bigger. We definitely can't be as low-key as those landlords."

Many of Hong Kong's invisible rich people are able to remain "invisible" because they focus on industries with little impact, such as real estate and trade, and they also develop over a long period of time, perhaps two or three generations;
A rapidly rising new wealthy person can generate a large amount of employment and tax revenue, so the scale of the industry cannot be concealed.

As for profits, you can get a rough idea by finding some professionals in the industry, but these cannot be controlled.

"Okay." Wang Fengzhi didn't say anything more, and then said: "Mr. Yang, will the group's main investment direction next year remain the same as this year?"

"I remember that at the end of last year, there was still 5000 million Hong Kong dollars in the group's account. Yang Wendong thought for a moment and asked, "How much money do we have in our account now?"

"To be exact, it is HK$6500 million, which is constantly changing." Wang Fengzhi added, "In addition, we currently owe the bank HK$1.16 million, and the value of our current self-owned properties and cargo ships is also over HK$1 million.

Plus, our profit is 50-60 million per year and will increase in the future, so the debt ratio is not too high.”

"That's good." Yang Wendong nodded and said: "Next, I will focus on investing in shipping and a little less in real estate;
You need to make some financial preparations, because we will have to invest more money in second-hand ships.”

The main reason is insufficient funds. Although it seems that if I am really ruthless, I can leverage hundreds of millions of funds, but investing in shipping is nothing.

He will invest in real estate and shipping, but in the short term, there will be a real estate crisis in a few years, so he only needs to invest in some high-quality properties in the next few years.

Shipping will have a huge opportunity for explosive growth in a few years, so it naturally requires key investment.

"Okay, I will optimize the group's cash flow." Wang Fengzhi agreed and said, "But Mr. Yang, Hong Kong banks have recently begun to relax their restrictions on shipping, and the restrictions on second-hand cargo ships are much better than before. We still need to communicate with several banks in advance."

"Yes, I know." Yang Wendong nodded and said, "HSBC, Standard Chartered, Hang Seng, Bank of East Asia are our long-term cooperative banks. You can also cooperate with them more and build a good relationship with them."

Since HSBC relaxed its investment in shipping, several other banks in Hong Kong have followed suit, which can be regarded as a leader effect.

Hong Kong's shipping industry developed rapidly in the 60s, probably because of this reason. Its scale expanded significantly before 67, and then its fortunes exploded. It encountered the Middle East War which lasted for 8 years, and thus three world-class shipping kings were born.

"Okay, I will cooperate and negotiate more with these banks." Wang Fengzhi agreed.

Although many big collaborations were negotiated by the bosses themselves, they only discussed the direction, and the details were still negotiated between her, the finance or department head, and the bank.

At other times, they are responsible for some small collaborations.

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(End of this chapter)