Chapter 375 Shipping Expansion Plan

Chapter 375 Shipping Expansion Plan

Chapter 375 Shipping Expansion Plan

The development of the cultural industry takes a long time. Unlike industry, which can explode with just an innovative idea, there is no need to rush. The key is to proceed steadily.

Because of the long-term privileges of copyright, companies that focus on developing cultural industries have lower profits in the early stages. However, in the later stages, as the number of copyrights increases, the channels become more and more complete, and there are various profit-making methods, the profits will explode like a snowball.

First, rely on ancient Chinese mythology to capture the local markets in Chinese communities or areas with a large influence of Chinese people, and train enough talents, then you can enter the global market.
February 12:
It was drizzling. In the morning, after Yang Wendong arrived at the office in Changxing Building, he looked at the cloudy sky in the distance and felt a sense of comfort.

With the cooling weather and appropriate rainfall, the drought in Hong Kong has gradually eased a lot.

"Knock, knock, knock~" There was a knock on the door. Yang Wendong turned around and saw that it was Zheng Yuhua, so he said, "Come in."

"Mr. Yang." Zheng Yuhua came in and said politely, "The tanker order from Taiwan has been negotiated. Their base price is 610 million US dollars per 5.2-ton tanker. If we order two, they can reduce the price to 590 million US dollars per tanker."

"What about the other three?" Yang Wendong asked with a smile.

Zheng Yuhua shook his head and said, "They can't build three ships because they only have two shipyards that can build 5-ton ships. If you want to order a third ship, you have to wait until these two are ready, which will take at least a year."

"Forget it, let's just order two." Yang Wendong thought for a moment and asked, "What about the banks in Taiwan? How much help can they give us?"

Zheng Yuhua replied: "The bank in Taiwan is willing to support 70%, and the shipyard can also make multiple installments, so the pressure on us is not too great."

"That's fine." Yang Wendong added, "But you can ask for more benefits in terms of after-sales service. Although we have our own dock, it would be better to use theirs."

"Okay, then I will sign a letter of intent with Keelung Shipyard as soon as possible and then submit it to you and the Ministry of Legal Affairs for review." Zheng Yuhua agreed.

When it comes to major investments, the subsidiaries cannot decide on their own. The final decision lies with the headquarters, and the entire process will be reviewed before the decision is made. Even people from the headquarters will be involved in the early negotiations.

"Okay." Yang Wendong nodded and asked, "What about Japan?"

Zheng Yuhua replied: "I have communicated with several Japanese shipyards including Mitsui, Mitsubishi, and Sumitomo. They have no problem continuing to build ships for us. The key issue is with the banks.
Because the last batch of ships we purchased have not been fully delivered, and even if they are delivered, the short-term impact on the debt scale is still very large, so the Bank of Japan has a more conservative attitude towards our new purchases; the same is true for HSBC. Sanders is not willing to continue to support our expansion because the risk is too great. "

"Well, it's within expectations." Yang Wendong nodded. Doing business is not easy in itself, especially when asking for help from a bank. Banks also need to consider risks.

Then he said, "Well, let's communicate with the Bank of Japan. If the risk is high, then we can raise the interest rate appropriately and give them some benefits. As for HSBC, I will talk to Sanders."

Many times, as a time traveler, it is useless to know that the future risk is low. You have to abide by the basic rules of this world. If you want a loan, you have to rely on your personal strength and description of industry development to impress the banker.

Only in this way, by maximizing leverage, can we obtain higher returns.

"Okay." Zheng Yuhua agreed.

The next day, Yang Wendong met with Sanders in the presidential suite of the Four Seasons Hotel.

"Mr. Sanders, please take a seat." Yang Wendong said with a smile.

"Thank you." Sanders also smiled and replied, "Mr. Yang, your Four Seasons Hotel is doing very well now. I heard that the average occupancy rate is as high as 85%?"

"Yes, this is all thanks to the development of Hong Kong's economy in recent years." Yang Wendong nodded.

Since the opening of Four Seasons Hotel, the person in charge Tang Xingzhi began to use his connections to cooperate with travel agencies in many European and American countries to attract business travelers from Europe and the United States. At the same time, in Hong Kong, the influence of Changxing Group has been expanding, attracting many locals to consume, or their overseas friends to consume, etc.

In addition, the Four Seasons Hotel is luxuriously decorated and positioned as a high-end hotel, which meets the needs of overseas business people and wealthy local Hong Kong people, so its business has become booming.

"Opportunities are also reserved for capable people. Mr. Yang's current success in multiple fields is a representation of his strength." Sanders said with a smile.

"Thank you." Yang Wendong paused, then went straight to the point again and asked, "Mr. Sanders, I think you should know that the reason I asked you out today is for my Changxing Shipping's next batch of ship purchase plan in Japan."

"Mr. Yang, I don't really understand this." Sanders said, "You were unwilling to invest all your money in buying new ships at the beginning, so why are you so aggressive about buying new ships now?" A few years ago, when Sanders was preparing to enter the financial services industry in the shipbuilding industry, he was more optimistic about Yang Wendong, because Yang Wendong had a stable income in the industrial field at that time. Even if he made a loss in shipping, HSBC could guarantee that he would not suffer any loss.

But at that time Yang Wendong was desperately trying to buy second-hand ships. Although HSBC also participated in it, it was not a new ship after all.

The previous large-scale purchase of new ships was already very radical. However, at that time, Yang Wendong had achieved great success in many fields and it was okay to be a little radical. But unexpectedly, he would start expanding again after only one year.

Yang Wendong smiled and said, "I have enough confidence in global shipping. Mr. Sanders is the same as me, right?"

"Yes, I am confident too," Sanders admitted. "But no matter how confident I am, as a banker or an entrepreneur, I still have to control risks. Many times, I am too confident. I may be right once or twice, but if I make a mistake many times, I may be doomed."

"Mr. Sanders is right." Yang Wendong nodded and said, "But how can there be no risk in doing business? If the risk is really low, then the profit will be much lower.

Today, the economies of Southeast Asia, Japan, South America and other regions have begun to develop, and Europe and the United States have also developed smoothly. The global demand for oil and energy is also increasing. In addition, the United States has begun to promote global trade, and labor costs in Europe and the United States are getting higher and higher, so low-end industries are bound to transfer.

This will inevitably lead to the shipping market becoming the most core demand in the next few decades, and the current number of ships is still far from enough.”

"That's right. If you want to make a profit, you have to take risks." Sanders nodded and asked, "What about Mr. Yang's plan to buy new ships in Japan this time?"

杨文东说道：“计划是在50万吨级别，主要就是3艘十万吨级别的油轮，还有2-3艘5万吨级别的散装货轮。”

In an era when containers are about to become popular, he naturally cannot buy traditional cargo ships anymore. However, containers are not yet fully popular, so this point is rather embarrassing. Therefore, he can just buy a second-hand cargo ship.

Oil tankers and large bulk carriers will be the main force in purchasing new ships in the next few years, and the demand for these two types of ships is particularly high during the Middle East crisis and energy shortage, because daily necessities, a little less does not matter, probably from food or bulk commodities, which are basically indispensable.

"I have to say, Mr. Yang's development speed is much faster than any other ship tycoon in Hong Kong." After listening, Sanders said with a smile: "If you keep doing this every year, I'm afraid in less than five years, you will surpass Swire and Wheelock and become the largest shipowner in Hong Kong."

Yang Wendong smiled faintly and said, "Mr. Sanders, my goal is not to become the largest shipowner in Hong Kong, but to become a global shipowner."

"Global level?" Sanders was shocked. He looked at Yang Wendong and saw that his expression did not seem like he was bragging. He said, "Mr. Yang's ambition is indeed big enough, but this is probably not possible. Global trade is mainly in Europe and the United States, and there are strong legal restrictions over there to protect their own shipping companies."

"I know. In fact, even if there is no law, they will enact laws to protect themselves when they are threatened." As a time traveler, Yang Wendong naturally knows the characteristics of Europeans and Americans. When they have the upper hand, they want free trade, and when they cannot win, they want national security.
Sanders smiled and asked, "How do you break through this?"

Yang Wendong said: "It's very simple. I believe that Asia will become the core of future shipping. With the population of Asia, as long as the economy develops for another ten years, the demand for trade will be higher than that of Europe and the United States."

In terms of value alone, perhaps the goods consumed in Europe and the United States are much higher than those in developing countries, but weight is another matter.

Asia may indeed be much poorer, but once its economy develops a bit, the total demand for many basic necessities will easily surpass that of Europe and America. This is also the benefit of having a large population.
Moreover, the emergence of the Four Little Dragons and Four Little Tigers in Asia in the future is essentially because Asia has become a foundry for Europe and the United States. Given the nature of European and American companies, for the sake of asset-light operation and risk avoidance, they basically will not care about the shipping process. It must be the Asian companies that are responsible for transportation, which is very suitable for the growth of Asian shipping companies.

In the past, several Hong Kong ship tycoons also rose to prominence by relying on the Asian market. After they became large-scale, they could gradually penetrate the European and American markets. All they had to do was place orders with European and American shipyards. This was actually an unspoken rule. Bao Yugang often bought ships in France because of the European market.
"Asian market?" Sanders nodded and said, "If that's the case, it's possible. Asia does have a large population, and it doesn't have much oil and energy."

"Yes, so the tanker business is guaranteed to make a profit." Yang Wendong also said.

Although there are some oil fields in Asia, they are far from meeting demand. Southeast Asia is mostly composed of islands. Even if a country has oil, it has to be transported by ships.

This has led to the fact that all types of transportation within Southeast Asia have to rely on shipping, not just oil, but also daily necessities, food, industrial products, etc.

"Mr. Yang, you have convinced me." Sanders paused and said, "But this matter involves nearly tens of millions of dollars. I also need to confirm it carefully. In addition, my board of directors also needs to vote."

"No problem, I'm waiting for your good news." Yang Wendong said with a faint smile.

According to the management system of HSBC, the boss actually has absolute power, otherwise Shen Bi would not have been able to directly sell Hutchison Whampoa shares to Li Jiacheng at a low price in his previous life.

It's just that the amount of money involved is probably too much, and Sanders has to consider the opinions of others, or share some of the responsibility.

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(End of this chapter)