Chapter 383: Summary of Wealth in 1963

Chapter 383: Summary of Wealth in 1963

Chapter 383: Summary of Wealth in 1963 (1)

Friday, January 1964, 2:
This day was the last working day before the Chinese New Year for Changxing Group, and Yang Wendong also called together people from various subsidiaries.

In the meeting room, when Yang Wendong came in, everyone stood up and said, "Morning, Mr. Yang."

Yang Wendong smiled, waved his hand and said, "Sit down, sit down. Today is the last day of work before the New Year. Everyone, please feel free."

"Okay~" Many people also had smiles on their faces.

The culture of the entire company is relatively relaxed. Although it can be very busy sometimes, people are very nice to each other. Even the boss, Yang Wendong, will not put on airs when he meets the cleaners, and the same goes for others, regardless of whether they are voluntary or not.

Yang Wendong added: "The reason why I called you all here today is to give a general report on the development of each company last year before the New Year, and to make plans for next year.

We also consider that there is a lot of cooperation between the subsidiaries, so everyone knows the general situation, which will also facilitate future cooperation. "

The head office group holds an internal summary meeting around the Chinese New Year every year. Those who can participate are the group's senior management and heads of first-level subsidiaries, who then summarize the group's development status.

However, these only involve scale data. Not to mention insiders, even a capable reporter can roughly find out these data. For example, the customs must have detailed data on Changxing Industrial's exports, and the Housing Authority also has detailed data on Changxing Real Estate's various properties. Although these are theoretically confidential, they are only vague estimates based on specific numbers. Even if there is a 20% difference, the scale can be inferred.

Therefore, the senior executives within Changxing Group do not need to keep too much secrets, as long as they do not involve core data, and the group head office naturally knows everything.

Then, Wang Fengzhi, who was in charge of the finance of the general group, said, "Everyone, I still want to remind you that you cannot talk about the data related to net profit and profit margin. You only need to talk about the turnover and growth rate, future development plans, etc."

"Sister Wang, this is not the first time for everyone to attend the year-end meeting, don't worry." Yang Wendong said with a smile.

"We all understand, Sister Wang." Wei Zetao said with a smile, "Then let me report to you first."

Changxing Industry is the earliest subsidiary of the entire Changxing Group and also has the largest profit and scale. The rapid and smooth development of many other businesses in the early days also relied on Changxing Industry.

It can be said that he is the eldest son.

"Okay." Yang Wendong nodded.

Wei Zetao opened the prepared documents and continued, "Changxing Industry currently has many products, but its core products are still sticky notes, trolley cases, rotary mops, sticky hooks, and plastic bags and woven bags;

As these businesses are developing well, they are gradually moving towards the front end of the supply chain. We now have R&D centers for paper, glue, and plastics, and have invested in Formosa Plastics, etc. We have a lot of business.

So I have discussed with Mr. Yang before that Changxing Industry will be divided into four business units. The first is the paper industry business unit, the second is the plastic products business unit, the third is the flexible packaging business unit, and the fourth is the internal innovation business unit. "

Yang Wendong continued, “Yes, Changxing Industry now has too many types of business, so we have to gradually separate them, just like our Changxing Group, where one team cannot manage everything;

Currently, it is divided into four, but if an industry becomes large in scale in the future, it can become independent. For example, the glue for sticky notes is currently classified under the papermaking industry. If it can continue to grow in the future, it can also be separated into an independent glue division. "

Everyone nodded, and they all understood that this was necessary for the development of the company.

When a business is doing well, it develops very quickly. For example, many businesses in the mainland in the past were small factories on the verge of bankruptcy 20 years ago, but they could become international giants 20 years later. And because Changxing Group has the prophet Yang Wendong, it develops even faster.

Therefore, the emergence of business units is inevitable, and this is true for any large enterprise.

Wei Zetao went on to say: “The first business unit, whose core product is sticky notes, sold a total of 16.5 billion pieces last year, up 17.1% year-on-year, with sales of HK$1.56 million, up 18.9% year-on-year;

There are also pest control products such as sticky mouse traps and fly traps, which sold a total of HK$4200 million last year, a year-on-year increase of 31%."

"The growth of mouse traps has increased so much?" Yang Wendong asked with a smile: "It seems that the channels have increased a lot?"

Wei Zetao replied: “Yes, Post-it Notes relied on 3M’s channels for development in the early days. Although it is not 3M outside of America, the cooperation with America made it much easier to find distributors.
As for the sticky mouse board, we relied on ourselves to gradually develop channels, so the early development was relatively slow. But now that the company is becoming more and more famous, it is easier to develop channels, and the sticky mouse board has developed very quickly. "

"Well, that's good." Yang Wendong asked again: "The mouse traps have sold for more than 4000 million. How many workers are there now who specialize in making mouse traps?"

Different industries have different requirements for the number of workers. Some can only rely on machines, while others rely on workers. Mouse traps are the latter.

When the post-it note industry became large-scale, Yang Wendong no longer cared much about the profits of the sticky mouse boards, but he still had to support it, because the production of sticky mouse boards depends entirely on manual labor and can bring a large number of jobs. In particular, the jobs do not require any skills, which is very suitable for women who cannot find jobs, vulnerable groups and even the disabled. If he mastered this market, it would be most appropriate for him to be the first batch to go to the mainland after the reform and opening up.

Wei Zetao said: "About 3500 people."

"Okay, keep working on this, the market is still huge." Yang Wendong nodded and said, "There is no country in the world that is not troubled by the rat problem."

As long as the infrastructure is not in place, there will only be more and more rats. There was even a saying in the past that the number of underground rats is ten times the number of people in a city.

Nowadays, the whole of Asia is indeed developing very fast. As the economy grows, people will have more and more food, and waste will also increase. This waste will eventually breed more rats.
Therefore, the market for rodent killers is also very large. "Okay, Mr. Yang." Wei Zetao said, "It's just that the problem of piracy is too serious. Many places can produce sticky mouse boards by hand, and the cost is much lower than ours. The labor cost in Southeast Asia is also lower than ours, and transportation is convenient, so the competition is fierce.

We have certain advantages because we have invested in research, our glue has better performance, and we use channels in big cities.

"Well, it's very difficult to compete with small workshops in terms of cost control." Yang Wendong thought for a moment and said, "Now we also produce our own glue. The biggest outsourcing cost is paper, right?"

Wei Zetao nodded and said, "Yes, this is a special waterproof cardboard. We import it from Japan. The cost is high, accounting for more than half of the cost. Unless we change it to plastic, but then it will be too heavy and inconvenient to transport and sell to customers."

Yang Wendong asked: "Can Taiwan produce it itself? Can they find a way to solve this problem?"

Wei Zetao said: "I asked Mr. Ma Jiayou about this matter. He said that we may need to go to Europe and the United States to purchase patents. At present, they do not have their own research and development capabilities, and they also need to purchase corresponding equipment."

"Then let Mr. Ma go and consult. All the production needs of complete sets should be quoted from overseas." Yang Wendong paused and said, "The mouse trap is the industry I started from. It can also create a large number of jobs. This industry must be continued, and it would be best if it could become the world's number one."

Although we have the patent, this small and simple product has too many imitators. At most, we can protect our rights in some Western countries by restricting dealers, but it is not possible in other places.

But a more powerful weapon than patents is scale and the entire industrial chain. As long as the cost is reduced to the lowest level, everyone else will be finished.

Of course, when it comes to overseas markets, there may be tariffs and even government issues, but things like mouse traps are not something that require a country to introduce a special protection policy. This is also the advantage of a small industry.

Even if one day the labor cost in Hong Kong becomes too high, the mainland will have also reformed by then, and this kind of factory that can generate employment and earn foreign exchange through exports will be the most popular in China, and we can easily move to the deep sea.

The land to be chosen must be the future city center of Deep Sea, and the current mousetrap industry in Hong Kong can also take the opportunity to buy land, which is a complete win-win situation. Even if the mousetrap industry does not make money, it is still cost-effective.

Wei Zetao agreed and said, "Okay, I'll tell Mr. Ma."

"Okay." Yang Wendong asked again: "Does the First Business Unit have other industries?"

Wei Zetao replied: “Yes, the office paper, toilet paper and small-package facial tissue produced by Wanwan Paper Mill are all from the First Business Unit, but the scale is not large at present, and the total sales volume is only HK$165 million;
However, the sales volume of facial tissues has increased very rapidly. In addition to Taiwan and Hong Kong, we have recently started exporting to the Japanese market, which is very popular. The Japanese are desperately placing orders with us, and are even willing to pay first before shipping. Some manufacturers also want to purchase patent licenses.”

"The patent license is not for sale for the time being. We will produce it ourselves first." Yang Wendong shook his head and said, "Then notify Mr. Ma and continue to expand the scale according to demand. Be bold and don't worry about the funds."

As a time traveler, he naturally knew how big the market would be for small packages of facial tissues. Almost everyone needed them, and they were not very expensive.

For now, he still wants to produce it himself. He is very optimistic about the papermaking industry. If this industry wants to develop rapidly, it cannot rely on post-it notes because the demand for post-it notes is limited. But it is different for toilet paper, the demand is definitely more than a hundred times.

As long as the demand is large, we can expand the scale, reduce costs, and then gradually enter the front-end industrial chain and other paper products. Only in this way can we build a giant papermaking industry.

"Okay." Wei Zetao agreed and continued, "The main products of this second business unit are trolley cases, hooks, rotary mops, etc. Among them, trolley cases are the core products. Last year, a total of 1035 million units were sold, both large and small, with total sales of HK$2.11 million, an increase of about 15% year-on-year."

"15%? That's not a lot." Yang Wendong said, "It seems that the competition in this industry is also very fierce?"

Wei Zetao said: "Yes, Europe, America and Japan all have related brands. We can maintain growth, firstly because we are the first trolley case brand, and secondly because we invested a lot of advertising in the European and American markets last year and invited popular European and American celebrities to endorse our products."

"Well, we still have to advertise." Yang Wendong nodded and said, "Although it seems that the investment is relatively high now, the brand has been established and the long-term benefits are very good."

Marketing is the core of an enterprise. Sometimes, in many industries, it is more important than technological research and development.

"Okay, we will continue to invest in advertising." Wei Zetao added, "The second main product of the second business unit is the sticky hook. Last year, we sold a total of 7.6 million sticky hooks with a turnover of HK$3600 million. We estimate that this industry accounts for about 15% of the global market."

"Well, not bad." Yang Wendong smiled and said, "The sticky hook industry will definitely get better and better with the development of the economy."

The reason is simple. Only concrete houses need adhesive hooks. Otherwise, for wooden houses in rural areas, just nailing a nail will suffice. The future global urbanization will inevitably expand this market tenfold or even a hundredfold.

"We also think so internally." Wei Zetao smiled and continued, "The third model is the spin mop. This product currently uses a licensing model because its shape is irregular and it is divided into several parts, so the transportation cost is very high.

We only produce for the markets in Taiwan, Japan and parts of Southeast Asia, so our sales are not high. Last year, we only sold over 100 million units, with a turnover of less than 1000 million. However, the profits from patent licensing in various parts of the world are quite good.”

"Authorization is indeed highly profitable and does not require any worries." Yang Wendong said, "But we still want to be a production enterprise. Unless it really does not conform to market rules, it is best for us to do the rest ourselves."

Before containers became popular, the transportation costs of many commodities were too high, so high that even Europe and the United States had many low-end industries. For example, Berkshire Hathaway, owned by Buffett, was still a textile company with tens of thousands of workers in the 60s. It was not until it was hit by containers that it eventually declined and was acquired by Buffett.
"I see. Currently, only the rotary mop in the group adopts this method." Wei Zetao continued, "The third business unit is responsible for plastic bags, woven bags and packaging for its own sister companies, such as instant noodles and facial tissue packaging.

The current production capacity of plastic bags has exceeded 30 million per month, and the monthly production of woven bags has exceeded 4700. Last year's total turnover was million. This year, the production capacity will continue to be expanded. Both are in serious short supply. "

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