Chapter 400: Glory Electronics' Progress and the Appointment with Hang Seng Bank

Chapter 400: Glory Electronics' Progress and the Appointment with Hang Seng Bank

Chapter 400: Glory Electronics' Progress and the Appointment with Hang Seng Bank

After marriage, Bai Yujie naturally moved into the Bai family. Fortunately, the villa that was purchased at the beginning had enough rooms, so there was no problem with so many people living in it.

However, when the time is right, you can consider buying a villa on the Peak. It's not just about the reputation, but also because it is the core of power in Hong Kong and is more secure.

It's May soon:
On this day, Yang Wendong came to North Point, Hong Kong Island, which is now the largest industrial center in Hong Kong Island.

"Hello, Mr. Yang, welcome to Honor Electronics." Wang Zhiqun, the head of Honor Electronics, was also waiting at the company gate early.

Yang Wendong smiled and said, "Your behavior shows that I come less often."

Anyone who has worked in a company knows that if the boss comes to the company occasionally, everyone will behave unusually politely. On the contrary, this will not be the case if the boss comes every day.

Wang Zhiqun said with a smile: "Then Mr. Yang, please come more often in the future."

"No problem. Glory Electronics will become the most important manufacturing industry under Changxing Group in the future." Yang Wendong nodded and said, "It just so happens that I know that your cathode ray tube factory and motor factory have been completed and put into production, so I came to take a look."

In the past few years, Changxing Industry has been the core of the manufacturing industry within the Changxing Group. Its several popular products have brought tens of thousands of jobs to Hong Kong and huge wealth to the boss Yang Wendong, enabling him to invest in various other fields. Otherwise, a good cook cannot cook without rice. Even if you are a prophet, it is useless without money.

However, with the advent of the electronic age, the number of small creative products is also limited. In the next few years, the scale of Honor Electronics is likely to surpass that of Changxing Industrial. By the 70s, when the electronics industry develops to the point where there are small games or computers, it will inevitably become the group's most core industry, without a doubt.

Wang Zhiqun smiled and said, "Okay, I'll show you around. However, the production environment of the cathode ray tube is a bit polluted, so Mr. Yang should also follow the safety officer's advice."

"Okay, no problem." Yang Wendong nodded.

Most of the household appliance industry is pollution-free, but televisions are different. Whether it is the current cathode ray tube or the LCD decades later, a large amount of chemical substances are required in the production process. In the past, when BOE in China selected factories, the most important thing it valued was that they must be near a large water source.
Even the RCA pollution in Taiwan more than a decade later was caused by the Americans directly discharging large amounts of highly toxic compounds into groundwater in order to save environmental protection costs.

……

For more than an hour, Yang Wendong and Wang Zhiqun visited the cathode ray tube assembly line, TV production line, rice cooker/microwave oven production line, motor production line, etc.
Yang Wendong didn't really understand many professional things, so he didn't express any opinions. He just left it to the professionals. He wouldn't question the professionals casually. Every year, there would be third-party people to investigate.
After the visit, Yang Wendong said, "Old Wang, your workshop layout seems a bit crowded."

Wang Zhiqun nodded and said, “Yes, this was a TV production base in the early days, and we considered expanding it, so the scale is a bit larger;

Later, some kitchen appliances and fans were added, so I put them all here. But I didn’t expect that the development of televisions was not that fast, but kitchen appliances were developing rapidly, so now it feels a bit crowded.”

Yang Wendong said: "Well, this is normal. Many of our kitchen appliances are new. Rice cookers and electric fans have price advantages. In addition, they are small appliances. If the channels are good, the development speed will naturally be very fast.

But TVs are large appliances, and many families may have to make a lot of efforts to buy them. They will naturally consider buying brands, and we at Honor will have to continue to work hard to develop in the future."

The higher the technological content of a product, the more difficult it is for latecomers to succeed, especially when the technology itself is not strong.

In the past, after the reform and opening up of the mainland, domestic brands gradually replaced foreign brands, also from low to high. At first, it was clothes, then ordinary small appliances, and then black and white. As the crown of industry, automobiles have worked hard for more than 40 years before gradually gaining hope.
Currently, I have basically no advantage in the field of technology and can only rely on low prices to gain market share, which is naturally very difficult.

"Yes, Mr. Yang, it will take some time to build a TV brand." Wang Zhiqun nodded and said, "At present, we are gradually looking for channels that can provide after-sales services. Only in this way can we dare to sell in this place. Fortunately, RCA's technology is relatively common, and the channel's after-sales service is not difficult."

Yang Wendong nodded and said, "Okay, expand the market in Southeast Asia as soon as possible and build a reputation. This kind of promotion is actually the slowest in the early stages. Once we have established a firm foothold, as long as the quality is not a problem, then with our price, the subsequent sales will only snowball."

In an era without the Internet, and even in an era when many places did not have television, it was difficult to promote a brand and one could only rely on dealers, especially overseas ones.

Not to mention the small brand Honor, even American and Japanese brands can only rely on local channels to enter Southeast Asia.

Wang Zhiqun continued, "Mr. Yang, I have an idea. The films of Changxing Film Company are quite famous in Southeast Asia. Why don't we put some advertisements in them? That can also increase their fame."

"Okay, we can try." Yang Wendong agreed and said, "But the effect is probably not that strong. The best way is to wait for the stars trained by Changxing Film Company to become famous in Southeast Asia. At that time, the effect of direct endorsement will be hundreds of times better."

Wang Zhiqun said: "Yes, it is better to find professionals to endorse this marketing. I heard that Japanese electrical appliance brands and clothing brands entered the European and American markets by relying on celebrity endorsements to quickly gain market share."

"We'll have to wait and see. You just need to lay a solid foundation step by step." Yang Wendong added, "Even if the TV is difficult to promote, but the other small products are really successful, then the Honor brand will be deeply rooted in people's hearts, which can also be considered a success."

Wang Zhiqun said: "I understand. We will start from small to large, step by step."

Yang Wendong added: "However, seeing that your kitchen appliances, motor workshops, and fan production are running out of space, do you think it is necessary to build another large factory to produce these separately from televisions?"

Wang Zhiqun replied: "I think it is necessary. Now that the industrial chain is in our own hands, coupled with Hong Kong's low taxes and low labor costs, several of our products are very popular in Southeast Asia, and the prices are much lower than those of similar products in Japan, and the demand is very high. The monthly export volume of rice cookers has exceeded 3, and the channels are still urging for delivery; microwave ovens are even higher, with 8 units exported last month, and there is also a great demand for them in Europe and the United States.

There are even more electric fans. There is demand for them in Southeast Asia, Europe and the United States. When summer comes in the northern hemisphere, I would not be surprised if the export volume is 300,000 to 500,000 per month. For Europeans and Americans, they only change their fans once a year.

With so many demands added up, the existing workshops may be very crowded or even overwhelmed.”

"Okay, then you discuss with Zheng Zhijie and ask him to acquire another large piece of industrial land in Hong Kong Island." Yang Wendong nodded and said.

Wang Zhiqun said: "Mr. Yang, aren't you pessimistic about the real estate market?"

Yang Wendong smiled and said, "Although I am not optimistic, compared with your needs, real estate investment is not important. The first priority is to ensure the smooth expansion of your industry, including Changxing Industry."

If we go by the original historical real estate data, land prices would not drop to the lowest until 67. If we wait until then, it would be too late. How can we waste three years, or even three months, when the manufacturing industry is expanding?

Moreover, the so-called plunge will indeed be a severe drop in the next three years, but if the timeline is extended a little, by the early 70s, even if you buy land at a "high price" now, you will still make a profit, it can only be said that you will make less money. It is impossible for this to affect the core industries.

Besides, this is also industrial land, which is in a general location and much less valuable than commercial land. From a real estate perspective, "making less money" is not much. It is more important to let Honor Electronics successfully enter the Asian market. In this way, it can enter the large home appliance industry earlier, allowing the Hong Kong market to quickly transform from low to high, and then it can more calmly lay out the mainland after the reform and opening up.
"Okay, then I will communicate with Mr. Zheng right away." Wang Zhiqun said with a smile.

In the following half month, Wang Zhiqun and Zheng Zhijie began to look for a suitable location on Hong Kong Island to build a new electronics industry base.

Until the end of May, the two came to Changxing Building together, and Zheng Zhijie reported: "Mr. Yang, we have looked for many locations. From the perspective of capital investment and industrial chain demand, we finally believe that continuing to invest in North Point is the most convenient.

There are indeed a lot of vacant land in the south or west of Hong Kong Island that can be used to build factories, but they are too remote. Water, electricity, and transportation may need to be rebuilt. The most important thing is people. Without people with high enough education, it is difficult for factories to scale up. Some remote places in Hong Kong Island are not as good as the towns on the Kowloon Peninsula in this regard. "

"Well, people are indeed the most important." Yang Wendong nodded and said, "But North Point has been developed for 20 years, so there should be fewer large empty areas, right?"

In a company with a little bit of technology, people are the most important, not just management or technical talent, but everyone.

In the same factory, the middle and senior management are the same, but one ordinary worker is illiterate and the other is a junior high school student. If the two continue to develop, the gap will definitely become larger and larger.

In the past, the mainland was able to become the world's factory because of sufficient education, so that even those who drive screws have a high school or technical secondary school degree, and a team leader may have a college or even a bachelor's degree. This is unimaginable in ordinary countries.

Rongyao Electronics is a technology-based company. Although it has not yet involved anything too complicated, even if it is an electric fan, it will be much better if it is produced by people who can read. At the simplest level, they can see the industrial card and know to abide by the rules.
Zheng Zhijie said: "Yes, there is basically no vacant space in North Point, but there are also many textile and toy factories in North Point that intend to move to Kowloon because the cost here is too high;
I have also done some research. As long as there are more factories leaving, we can buy their factories, demolish them and build new ones.”

"That's fine." Yang Wendong nodded.

At this time, Wang Zhiqun said: "If this is the case, our costs will be much higher."

"It doesn't matter. It's okay if it's a little higher. Industrial land itself won't be that high." Yang Wendong waved his hand and said indifferently: "And we can also take the land in batches, first take a small piece to meet your needs;
As for the rest, when the demand grows in the future, we will consider purchasing other surrounding land.”

On one hand, there is the demand for industrial growth, and on the other hand, housing prices are about to plummet. If you don't want to delay either side, you can buy some land according to demand first, and then buy land in two years when production capacity demand increases further and Hong Kong land prices fall to the bottom.

"Okay, I'll take care of this." Zheng Zhijie smiled and said, "Mr. Yang, there is one more thing. Ho Sin Hang of Hang Seng found us. He knew that Honor Electronics was planning to expand and expressed his willingness to provide loan assistance."

"Okay, as long as the interest rate is favorable, it doesn't matter." Yang Wendong said: "For industrial investment in Hong Kong, we should try to find Chinese banks for capital cooperation."

The financial principle of Changxing Group is to cooperate with British banks such as HSBC and Standard Chartered for overseas trade; and to cooperate with Chinese banks within Hong Kong as much as possible; unless some special transactions are involved, that is another matter.

"Okay." Zheng Zhijie and Wang Zhiqun agreed.

Buying some industrial land, even if it is in North Point of Hong Kong Island, would not be worth much, and Yang Wendong naturally would not care. What he cares about is the development of Honor Electronics. Land and so on, making a little more or a little less is just a number.

Only when the manufacturing industry becomes bigger can it have enough influence, just like now the UK is looking for us to invest and build a factory, Hong Kong real estate companies do not have this treatment.

Time soon came to June, and Zheng Zhijie quickly acquired several factories, a total of 8 feet of land (8000 square meters). Then he started to build the factories at the fastest speed in 24 hours. It was expected to be completed in more than a month, because it was just a small assembly factory and did not have many requirements. It only needed to be able to shelter from the wind and rain and have water and electricity.

After confirming that everything was fine, Yang Wendong was relieved. In the next few years, he would focus on manufacturing. As for real estate, he would wait until 67.
On June 6, an assistant came to Yang Wendong and said, "Mr. Yang, Ho Sin Hang from Hang Seng Bank wants to meet you."

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