Chapter 410: Horse racing to make money, playing ball to get promoted

Chapter 410: Horse racing to make money, playing ball to get promoted

Chapter 410: Horse racing to make money, playing basketball to get promoted (I'm back)

A month later, Shao Weiming resigned from TVB's financial director position and withdrew from TVB's board of directors. Zhongyitang Baizhishan Zuoshou took over the position and entrusted the audit to "Kwan Wong Chen Fang Accounting Firm".

Compared with foreign firms such as Pricewaterhouse, Ernst & Young and KPMG, Kwan Wong Chen Fong, which has not yet been acquired by Deloitte, is the most powerful firm in Hong Kong.

Yin Zhaotang promoted He Dingjun to executive president, giving him three votes on the board of directors. In terms of program production, the Shaw Brothers route was continued.

Li Rongsen's vote represents the British financial consortium and cannot be taken back in the short term, but three votes are enough to have the decision-making power in TVB's finances and personnel.

In the future, TVB can continue to choose Shaw Brothers for newly signed artists and well-known artists renewing their contracts, or choose Tianyu under Yin Sheng.

Among them, Tianyu’s artist profit sharing system is undoubtedly the first choice for artists.

That night.

More than one hundred artists from Shaw Brothers and Tianyu gathered in the banquet hall of the Regent Hotel to attend the inauguration dinner of the two new directors.

As the permanent representative of Wutaishan Building, Zuoshou holds both personnel and financial power, which is undoubtedly the most glorious position.

Not only were the main stars of the show such as Felix Wong, Adam Cheng, and Chow Yun-fat in attendance, but also people like Tony Leung Chiu-wai and Andy Lau who were not yet famous also showed up. Popular actresses such as Idy Chan, Joey Yung, and Cecilia Yip also attended.

The stars are shining brightly.

This banquet was regarded as an announcement of personnel changes to the entire TVB, and it was difficult to avoid paparazzi cameras. The next morning, the news of the new king taking over TVB dominated the entertainment section headlines.

The newspapers basically only published the news about Zuoshou's promotion, with a few mentioning the changes in the board of directors in passing. Some fearless tabloids dared to expose the underworld identities of Shenxiantang and Zuoshou Ge.

After several newspaper offices caught fire, unpleasant words gradually disappeared.

There is now a "Mr. Pan" in the world, and when dealing with artists, Yin Zhaotang is also called "Mr. Yin".

Compared with TVB's lackluster ending, after obtaining the authorization from Huaxing, Chunghwa Electronics swept the electronics market with the strategy of giving away trial tapes when buying a Walkman.

It set a record of 30,000 units shipped in a month, and had an iterative effect on the radio market with its advantages of being lightweight and cost-effective.

Compared with high-priced Sony and Philips, which are just toys for the rich, Zhonghe I, with its low-price strategy, can make its products enter every household.

The shipment volume is certainly not the same.

That afternoon, Yin Zhaotang, accompanied by Lin Fuwang, A Le, Cao Fenye, and Gates Li, inspected the front-line workshops of Zhonghe Electronics.

Since all of its affiliated industries are under the dual management of business departments and the triad system, the society commands the factory and the society commands the gun.

In addition to their identity as workers, workers also have the identity of brothers from the same school, so they naturally have a channel to file complaints to higher levels.

Therefore, Yin Zhaotang has a fairly clear understanding of the situation on the factory front line. He is not afraid of false accounting, withholding of employee overtime pay, or reduction in food supplies.

But it is still necessary to show up regularly and ask middle-level management and fellow brothers to come and chat. When the monthly shipment volume reaches 50,000 units, Zhonghe Electronics' products will break even.

At the same time, the supply from the Japanese gangs alone is no longer enough to support production.

Back in the office, everyone sat down for the meeting. Yin Zhaotang called on someone by name, "Ah Le, go to Japan and negotiate with Toshiba, Nikon, and Sony to get a good price."

Ah Le was wearing a suit, leaning back in his office chair, smoking a cigarette in a casual manner, and said, "Boss, I'll go tonight."

Although semiconductor companies such as Toshiba, Nikon, and Sony have their own products, controlling the upstream supply of semiconductors is more profitable than selling finished products.

As long as there is an order, they will take it.

For large-scale purchase orders, no negotiation skills are required. Just quote a price, and if the negotiation is successful, buy it. If not, switch to another supplier.

If there is profit, there will be no shortage of sellers.

What's more, Zhonghe Electronics' shipment volume is obvious to all.

"In order to expand the scale of production and achieve economies of scale, I plan to open another tape recorder production line."

"Awang, you take responsibility. I want to see the product within three months." Yin Zhaotang said.

Lin Fuwang held a pen and paper, and took note of the key points of the meeting. He nodded and said, "No problem, Mr. Yin."

A tape recorder is a cassette radio, which can be seen everywhere in Apliu Street. Simply using cassette radios as products cannot support the development of Chunghwa Electronics.

However, once the Walkman became a well-known brand, the company could then manufacture tape recorders and, by leveraging the brand effect, in turn squeeze out the market share of local miscellaneous brands.

Yin Zhaotang puffed on a cigar and said slowly: "I have decided to set up a product department in the company to research the types of new products."

"I have only one purpose, that is, we produce what the market needs. The company is positioned as an electronic product manufacturer, not a walkman manufacturer or a pager manufacturer."

“We need to keep up with the market.”

This sentence made Lin Fuwang, Cao Fenye, Gates Li and others stunned, and they saw the ambition of the big boss.

Lin Fuwang immediately said: "Okay, I will set up a product department immediately."

To create a new product, you need to build an entire product line, staff it, arrange advertising and shipment. This cannot be done on a whim.

A best-selling product in the future may not necessarily become popular even if it is copied immediately.

However, Yin Zhaotang has the judgment. The product department conducts research and development, and he makes the final decision and allocates funds to support and guide loyalty and development.

After the meeting, slogans such as “We produce what the market needs” were hung all over the factory, and the Zhonghe spirit has transcended the times by twenty years.

While Zhonghe was developing step by step, PolyGram, a record company that served as the "software", was hit by a dimensionality reduction attack from the "hardware" manufacturer.

The entertainment industry is inseparable from the electronics industry. After Huaxing Records was empowered by Zhonghe, two albums were released one after another. The first one was "The Wind Continues to Blow" by Tianyu artist Zhang Guorong, and the other one was "Bad Girl" by Mei Yanfang, a singer from Huaxing.

In terms of record distribution, Tianyu has been completely tied up with Huaxing, and Yin Zhaotang can also indirectly obtain Huaxing's profits through his shareholding in Shaw Brothers.

Among them, the song "The Wind Continues to Blow", which combines lyrical and pop elements, perfectly showcases Zhang Guorong's unique vocal charm, making the unknown newcomer an instant hit.

The bold, avant-garde and innovative song "Bad Girl" ushered in the era of Mei Yanfang, who debuted as a talent show champion, to become a queen.

"Bad Girl" alone sold 500,000 tapes, breaking the sales record in Hong Kong. "The Wind Continues to Blow" ranked second, selling 400,000 copies.

The Hong Kong Island Recording Association's sales of 50,000 albums, including tapes, vinyl and other media, are counted as platinum records.

500,000 tapes are ten platinum, and 400,000 are eight platinum, setting the highest sales record in Hong Kong, ranking first and second, and has surpassed PolyGram.

Zheng Donghan saw the sudden change in the record industry and angrily said to the Guan brothers during a meeting: "One step slow, every step slow. I told you earlier that we can't let Zhonghe cooperate with Huaxing. The foreigners won't agree."

"Now that Zhonghe's portable red is selling like hot cakes, the Huaxing cassettes have also reached a higher level. The combined sales of the two records are one million cassettes."

"PolyGram has achieved ten platinum sales!"

In the past six months, due to the expansion of the portable player market, tape orders have skyrocketed, resulting in an increase in the price of imported magnetic powder and a surge in orders for tape factories.

The revolutionary trend brought about by the electronics industry is faintly visible, driving economic growth in a chain-like manner.

Guan Weilin explained: "These two albums are newly released. With more people using Walkman, the sales of cassettes will definitely increase."

"In terms of popularity, no one can compare to Alan Tam." PolyGram's two highest-selling albums are the earlier one, "Wind and Rain Together" by Teresa Tsui, which sold four times platinum, and the more recent one, "Can't Forget You" by Alan Tam, both of which sold 200,000 tapes.

Speaking of popularity, Alan Tam is the undisputed number one in the Hong Kong music market. However, as soon as "The Wind Continues to Blow" was released, the "Tam-Cheung rivalry" in the Hong Kong music scene in the 1980s began to emerge.

In terms of popularity among male singers, Zhang Guorong is almost able to compete with Alan Tam.

Zheng Donghan did not want to attribute the failure of the strategy to the market explosion, so he warned the three people: "The market is opened by people. How many years has Huaxing been established?"

"With TVB's support and Chung Ho's entry, if PolyGram doesn't find a solution, it will lose its position as the number one in the record industry."

"Robin, you should do it yourself and produce a masterpiece."

The eldest brother, Guan Weipeng, nodded and said, "As for the album, don't worry, I will help Ah Tan with it."

Zheng Donghan is only responsible for the company's strategy and no longer handles album production. After giving out the tasks, he drove to the villa of Fred, President of Philips Music Asia Pacific, in Wan Chai.

As soon as the two met, Zheng Donghan took out the documents and went straight to the point: "I hope to learn from the way Huaxing and Zhonghe cooperate to promote the records of PolyGram artists."

Fred, wearing a suit and pouring red wine, said, "Mr. Zheng, Zhonghe is a small company. The boss can promote cooperation with Huaxing by signing his name."

"Philips is a company with global business. Bundling Huaxing's records with Philips products needs to be reported to the headquarters for approval."

“I know the plan is right, but do you know how long it takes to push the entire decision?”

Zheng Donghan looked gloomy, but still insisted: "PolyGram can invest and make the parent company profitable."

Fred shook his head: "It doesn't make much sense to put money from the left pocket into the right pocket. Besides, after supporting Kimball, music companies in Japan, South Korea, and Taiwan will all apply."

“This plan is good, but once it’s approved, it will definitely not be the turn of Cantonese records.”

Zheng Donghan sighed, raised his glass and said, "Then PolyGram will be in trouble."

The impact brought by industrial clusters is difficult for record companies to resist on their own. If one album can be selected from the best, can every album be selected?
The strategic disadvantage cannot be reversed by production level alone.

But after finishing his drink, Fred said, "Perhaps, we can change our thinking."

Zheng Donghan asked, "What do you mean?"

Fred said calmly: "If we defeat Zhonghe Electronics, we will naturally reduce Huaxing's advantage. Don't forget that Philips is one of the most successful semiconductor companies in the world."

"Zhonghe is just a parallel import factory that processes products on behalf of others. Even the components need to be smuggled in large quantities in Japan."

Zheng Donghan's eyes revealed hope: "Sir, can you hinder Zhonghe's cooperation with Japanese island manufacturers?"

Fred laughed out loud: "The German headquarters should have the power, but as the head of Asia Pacific for a music company, I don't have the power to connect with big companies like Toshiba and Nikon."

"Japan's manufacturing industry has developed rapidly in recent years. They still hope to challenge the United States and will not be manipulated by us."

Zheng Donghan frowned in confusion: "Then how do we defeat Zhonghe?"

Fred puffed out his cigar and said calmly: "The new police chief, Sir Mei, used to be from the Special Branch, a political man."

"If you're willing to pay, you'll do anything."

After landing in Tokyo, Ale used the shell of a trading company, put out an order of two million US dollars a year, and invited Sony, Toshiba, Nikon and other companies to bid publicly.

This order represents the spending power of the entire Hong Kong, and would be considered a large order in any other region in the world.

After receiving the news, the three companies started to do background checks and after confirming the payment ability of the real buyer, they began to bid. In the end, Zhonghe successfully got a price comparable to that of the parallel imported products.

In the era before TSMC was built, Nichia Semiconductor had the strength of regional monopoly, and it was unrealistic to further lower the prices of components.

To squeeze suppliers, we must first break up the monopoly.

The semiconductor industries in China and Hong Kong are not doing well, and Japan will not allow them to be exploited unless the Japanese economic bubble bursts.

Zhonghe needs to at least double its order volume to be able to make a profit by shipping 50,000 units per month.

Conversely, when the company can sell 100,000 units per month, the profit point is no longer 50,000 units.

Of course, there are many categories of components, and different categories have different prices. Zhonghe will also launch more products, and future orders will not only rely on Walkman.

When the product line can generate stable profits, we can cooperate with Tsinghua Research Institute to tackle technical problems from small to large and make TSMC a reality.

In fact, as long as we wait for the Japanese economic bubble to burst, we will have the opportunity to subscribe to Nichia Technology. At that time, we can make a big leap forward just by spending a lot of money.

After two months of waiting.

The first batch of components worth US$500,000 were packed onto the ship, declared customs and shipped out to sea.

At this time, the Hong Kong Jockey Club, Sha Tin Racecourse is hosting the annual "Sha Tin Championship", and all 85,000 seats are packed.

The famous horse "Tong De" has won ten consecutive championships in this year's competition and is a well-deserved favorite.

Almost all gamblers in Hong Kong hold their horse racing tickets in their hands and watch the events on the field nervously.

In a members' box on the fourth floor.

Fred, the president of Philips, handed a lit cigar to the Commissioner of Police, May Henry, and said politely, "I have bought you five million Hong Kong dollars of Tongde."

"Tongde will definitely win tonight."

May Henry took the cigar, took a sip, waved away the cigarette in front of him, and said with a smile: "I am not familiar with horse racing. I will listen to you in everything."

The Jockey Club has always been a club for British companies and compradors, earning tens of millions every year just from membership fees, in addition to income from racing, horse training, advertising, and horse tickets.

Every year, hundreds of billions of dollars are paid to the Hong Kong government in gambling taxes alone, most of which are transferred back to their hometowns, with very few remaining in Hong Kong Island.

Fred smiled and said, "Sir Mei, please help me with the business."

Mei Henry crossed his legs, leaned against the leather sofa, and said with contempt: "Let's talk about it after we win."

Unlike the bosses of foreign companies and Chinese compradors who all dominate the horse racing scene, foreign bureaucrats, out of concern for clean government, rarely join the Jockey Club.

They gather together in golf clubs, forming a political culture of making money by racing horses and getting promoted by playing golf.

“Tongde, Tongde!!!”

The whole audience shouted the name of the famous horse, and then broke into a burst of excited shouts.

Portuguese jockey Tony Cruz won the title again, riding the famous horse No. 5 Tongde.

The Victoria Harbour is brightly lit and bustling with traffic.

A cargo ship from Tokyo was docking. Ah Le was wearing a windbreaker with his hands in his pockets. He had already made an appointment with the boss for a midnight snack and a bath.

(End of this chapter)