Chapter 385: Summary of Wealth in 1963

Chapter 385: Summary of Wealth in 1963

Chapter 385: Summary of Wealth in 1963 (2)

Zheng Zhijie also smiled and said, "Yes, there are some obvious trends at present. The housing prices near Carrefour supermarkets are much higher. Some real estate companies have also used this to promote their products. Our Carrefour supermarket has become a selling point for real estate companies.

Some real estate developers even approached us and wanted us to open stores near their real estate businesses, but many locations were too remote, so I didn’t agree. Only two are currently cooperating, and we are still negotiating with three more.”

"They are quite smart. This is indeed a mutually beneficial way of cooperation." Yang Wendong nodded and said, "Then we can consider cooperating with them, but we must remember that they are asking us for help, so we should ask for a little more benefits."

Yang Wendong had actually considered projects like commercial complexes earlier, but did not implement them. One reason was that large-scale commercial complexes are very large and cannot be built on a smaller scale. This cannot be achieved by relying solely on the residential communities built in the surrounding areas. It requires long-term traffic from people within a few kilometers or even ten kilometers around it.

This places extremely high demands on traffic and transportation. Even if we have minibuses, we still cannot meet this requirement. The main reason is that Hong Kong’s current economic capacity cannot support a large shopping mall.

Another thing is that when Yang Wendong had the ability to build this shopping mall, housing prices were already too high. If he had invested a huge amount of money in it, it would have been a huge loss. It would have been better to invest in shipping or wait two years to buy real estate at a bargain price.

Therefore, he did not think of this idea. It is feasible to develop surrounding real estate with Carrefour as the core, but if this is done, it will affect the normal expansion speed of Carrefour. Therefore, it cannot be done unless a large piece of land can be obtained.

In such cooperation, supermarkets will definitely have the advantage, because the supermarket's traffic and the convenience it can bring to surrounding residences are the core.

"I understand. I have actually been testing their bottom line." Zheng Zhijie smiled.

Yang Wendong asked again: "What about our own development business?"

Zheng Zhijie said: "Last year, we developed a total of 21 small residential projects and 6 office projects, with a total sales area of ​​388 million square feet and a total turnover of HK$1.93 million."

"Not bad." Yang Wendong nodded and said, "Looking at this data, it's not much worse than Changxing Shipping."

Zheng Zhijie replied: "Yes, but this is also due to the multiple recycling of funds and bank loans. Compared with shipping, Hong Kong banks still provide great support for real estate, so the capital turnover speed on my side is very fast."

"Yes, banks prefer real estate." Yang Wendong paused, then looked at everyone and said, "Everyone, let me say something off topic. I think you all know that I am not very optimistic about Hong Kong real estate today. This can be seen from the investment in Changxing Real Estate. As for what to do in the future, I think I don't need to say more."

Changxing Group has begun to tighten its real estate investment, and its peers in Hong Kong have also noticed it. Although residential operations are still continuing, property purchases have been much more restrained and are far less than in the previous two years.

When a real estate group stops adding inventory and only does quick business, it is a sign of pessimism, and when it starts selling off previous properties, it means that the company has judged that a real estate crisis is coming.

If you knew Wang Wanda in his previous life, you would find that his vision was really amazing. When others were crazy about real estate, he gradually gave up the residential business, hotel business and part of Wanda Plaza. It can be said that he sold them at a low price. Of course, there may be other reasons, but in the end, he successfully got rid of the risk and then lived freely and unrestrainedly. Even his son can continue to spend his money freely.
Wei Zetao, Zheng Yuhua, Liu Huayu and others also looked at each other. They understood what the boss meant. This was also a kind of notification. The boss suggested that they vacate their property, but he didn't say it very clearly. Because it was unnecessary, it was also one of the rules of the workplace.
"We understand what Mr. Yang meant." Zheng Zhijie continued, "Also, last year we built a total of 15 properties for Carrefour supermarkets. These properties have been transferred to Carrefour as required."

"According to the requirements, Carrefour owes you money. We will pay it back when we are able to do so in the future." Yang Wendong said with a smile.

Subsidiaries within a large group are all independent and can help each other, but brothers must settle accounts clearly and the money due must still be paid, and at most a discount can be given.

Unless the big boss Yang Wendong personally orders it, it will be considered an asset transfer, and this can only be done when the company holds full shares.

"Okay, I understand." At this time, Liu Huayu from Carrefour Supermarket also said: "We will definitely pay back the money, but we still want to thank Changxing Real Estate for its help."

"Brother company, you're welcome." Zheng Zhijie said with a smile, "Besides, if Carrefour's business is good, the business of other shopping malls here will also be better. We are mutually beneficial. Even if we are not a family, we should cooperate well."

"Yes, our brother company also needs this kind of return that kills two birds with one stone." Yang Wendong nodded and said, "Old Liu, Changxing Real Estate is almost done, it's your turn next."

"Yes, Mr. Yang." Liu Huayu said, "Everyone, my Carrefour salesmen only have supermarkets. We currently have 31 supermarkets in Hong Kong, and 7 are under construction. The total turnover of these 31 supermarkets last year was 8900 million Hong Kong dollars."

Because we can only talk about turnover here and not profit, so for Carrefour, which only has one business, this is the only thing it can do.

"Well, good." Yang Wendong nodded and said, "Then next year, we will surely be able to easily break 100 million."

The development speed of Hong Kong in recent decades has been even more exaggerated than that of the mainland after its reform and opening up. The average annual GDP growth rate in the 60s was about 14%, and this has to take into account the economic crisis from 66 to 67. The growth rate in other years would have been even higher.

In this era of economic boom, the growth of the retail industry is bound to be astonishing.

"Yes." Liu Huayu said with a smile: "Even the current 31 supermarkets can exceed 1.2 million. Considering the ones under construction now and those to be built next year, the total amount is estimated to exceed million, which should be no problem."

"Yeah." Yang Wendong added: "But Hong Kong is just a city after all. Although the market potential has not yet reached its limit, it will be more difficult to grow in the later stages;
Therefore, if we want to obtain a faster and simpler economic growth point, we should spend one to two years starting from next year to lay a solid foundation in Taiwan. It is estimated that by 65-67, Carrefour will expand on a large scale in Taiwan and occupy this market.

Although Taiwan’s economy is not as good as Hong Kong’s, its population is more than three times larger. If the supermarkets are well developed, the market will not be smaller than Hong Kong’s.”

All the time can be planned. In the next two years, my own funds will be invested in Hong Kong. When the financial crisis hits in 66, the retail industry in Hong Kong will inevitably suffer losses. Then I can focus on developing Taiwan.
We can even transfer people from Hong Kong to build the basic organizational framework, etc.; and in Hong Kong, we only need to seriously stockpile land in those two years.

Liu Huayu agreed and said, "I understand. This year I plan to build 3 to 5 new supermarkets in Taiwan, covering all areas of Taiwan, and build a site in each area."

"Well, OK, if there is any progress later, please inform me first." Yang Wendong nodded and said. If the group's subsidiaries design some large investments, Yang Wendong will personally inquire about it; small ones are decided by the subordinates themselves, and then report what they have done once a month.

As for the medium-sized investments in the middle, subordinates would report after they were sure that it was almost done, and then invest after Yang Wendong agreed.

Carrefour supermarkets are considered an important industry of the group, but there are too many supermarkets involved and it is impossible for Yang Wendong to take care of each one in advance, so it can only be managed as a medium-sized investment.

"Okay." Liu Huayu said with a smile.

Yang Wendong then looked at Wang Zhiqun and said, "Old Wang, it's your turn next, right?"

"Okay." Wang Zhiqun agreed and said with a smile: "Everyone, my Honor Electronics is a subsidiary that was established relatively late, so the data is not as good as yours;

At present, Honor has many businesses, including transistor manufacturing, televisions, electric fans, microwave ovens, water heaters, rice cookers, electric hair dryers, and electric mosquito swatters.

Except for electric mosquito swatters, electric kettles and rice cookers, which are mainly targeted at overseas markets, Haas withdrew from the other major products in the second half of last year, so the main focus is still on the Hong Kong market.

Last year, our Honor Electronics’ total turnover was HK$5567 million.”

"Well, what is the best-selling product at the moment?" Yang Wendong asked.

Wang Zhiqun replied: "The best-selling product is the electric mosquito swatter. Although it is a seasonal product, it is very popular in Europe and the United States. Last year, we sold 130 million units. The highest-selling product is the rice cooker. Because we have entered the Japanese market, it is cheaper than Japanese rice cookers, so it is very popular. The total sales volume is HK$1600 million."

"Well, good, this data is already very good." Yang Wendong nodded and said: "The biggest difficulty in the development of home appliances is channel expansion. In addition, many products were launched last year, so this year will definitely have a good result.

Your main task this year is to use the advantages of some existing products to expand channels, and then send other products to these channels. "

It was not yet the 70s, when computers, calculators and even electronic watches had not yet appeared. Yang Wendong, this prophet, could not really help the home appliance industry very much. At most, he could make some small things to attract the market's attention.

What we are utilizing now is this requirement to break through the limitation of channels, because many channels are shared and specialize in selling home appliances. So as long as we establish contact through a product and manage the relationship well, it will be easy to succeed.

Otherwise, even if Honor makes a TV, why would overseas channels use yours? If you break through step by step, the speed will be too slow.

"Understood, Mr. Yang." Wang Zhiqun said, "I have already begun to fully explore the European and American markets. For black and white TVs, we will also focus on Southeast Asia. Don't worry."

"Okay." Yang Wendong nodded, and then said: "Although Honor Electronics' current performance is much worse than that of the other companies, I still firmly believe that the electronics industry will be one of the largest industries in the world in the future, so your potential will be greater than Changxing Industrial."

"I will definitely work hard." Wang Zhiqun smiled and said.

As an insider in the electronics industry, he also agrees with this view. Not to mention other things, with the development of the electronics industry, all existing home appliances in the world will also need to be considered for replacement with new ones. The size of this market is simply unimaginable.

However, Honor Electronics is currently too small in scale and has no technology; its channels have just started, so it is very difficult to get a share of this pie. But this is normal. If the electronics industry wants to develop well, it needs a lot of time and financial investment to succeed.

"Okay then." Yang Wendong nodded, then looked at Zhou Haoran and said, "Old Zhou, can you tell me something too?"

"Yes, Mr. Yang," Zhou Haoran said, "The main business of Watsons now is beverage and food business such as herbal tea and instant noodles. The total turnover last year was HK$2300 million. Other businesses such as pharmacies and ginger water had an annual turnover of about HK$1100 million, mainly because the profit of the water business is particularly high.

However, the most successful cooperation last year was the cooperation with PepsiCo, where we manufactured Pepsi-Cola for them. If the cooperation goes well this year, we will get a huge order from PepsiCo.”

"Well, the beverage business is limited to Hong Kong and Taiwan, so it is really good to have such an achievement." Yang Wendong praised: "It is difficult to develop overseas channels, and the shipping cost cannot be reduced. Then, the core task of Watsons is to negotiate a good cooperation with Pepsi.

After the cooperation is successful, we will use their orders to develop our industry chain, and then wait for opportunities in the future to learn from Swire and develop our own beverages."

Not to mention now, even after the popularization of containers, there is very little beverage trade between the world. This is because the value of beverages per unit weight is not high, and it would be a huge loss to transport them to the destination through sea transportation, tariffs, etc.

In addition, this product needs to be eaten, so it is very difficult for this kind of food, which involves safety, to enter other people's markets or to be recognized by overseas people.

Therefore, it is currently mainly cooperating with PepsiCo. On the one hand, it can build up its own capital scale, and on the other hand, when it goes out to promote its own beverages in the future, it can also be listed as a strong partner of PepsiCo. After all, being able to produce for PepsiCo will definitely dispel the doubts of many people.

"Okay, our cooperation with Pepsi is going smoothly." Zhou Haoran said, "Starting this year, they will give us more and more orders; but in this case, we need to prepare in advance to buy another can production line."

"That doesn't matter. If it's time to invest, then invest." Yang Wendong nodded and said, "Make a plan and calculate the return on investment. As long as there's no problem, I can sign. If you don't have enough money, go to the bank and borrow."

"I understand. I will prepare the plan after the new year." Zhou Haoran said with a smile.

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(End of this chapter)