Chapter 461: Glory Electronics' Great Expansion
Chapter 461: Glory Electronics' Great Expansion
In the following days, Yang Wendong also went to Changxing Culture Company to discuss the character portrait and basic story of Peppa Pig with the comic painters and content creators; finally, the portraits of several main family members were determined.
However, there is no such thing as story content, which requires more caution. On the one hand, people need to be sent out to find story materials. On the other hand, even if the story is made, some children will be invited to watch it and the most appropriate content will be selected as the first few episodes. For any story, even if it is a cartoon with a different plot in each episode, the first few episodes are very important.
Time quickly came to 1966. From the beginning of 58 to now, Yang Wendong had been in this world for 8 years.
In 8 years, he has built a Chinese business empire in Hong Kong that is no less powerful than Jardine Swire, creating at least 3 jobs in Hong Kong. At the same time, he has gradually replicated his business territory in Taiwan and Singapore.
On January 1, it was drizzling and it was already past ten o'clock when Yang Wendong arrived at the company.
"Mr. Yang, Mr. Wang from Honor Electronics is here." The voice of assistant Xiaoying came from the phone.
"Let him in." Yang Wendong also replied.
After a while, Wang Zhiqun came in with a folder and said, "Mr. Yang."
"Sit down." Yang Wendong pointed to the chair across the table and asked, "Have you chosen the new TV production line?"
Benefiting from Changxing Trading's overseas channel layout over the years, as well as Honor Electronics and Changxing Industrial gradually building a full industrial chain in Hong Kong, the cost of televisions produced in Hong Kong can be said to be one of the lowest in the world, much lower than that of Japan.
Although black-and-white TVs are relatively low-end, in this era, many Southeast Asian countries only need low-end black-and-white TVs. It can be said that this market is very large. Therefore, Honor Electronics' TVs have been in short supply since the middle of last year, so expanding production capacity is naturally necessary.
Wang Zhiqun replied: "Yes, I went to Japan and Germany and visited their production lines. The price in Japan is about 20% lower. A black-and-white TV production line with an annual capacity of 50 sets is quoted at US$360 million."
"Including the cathode ray tube production line?" Yang Wendong asked.
The most important thing for a television in this era is the cathode ray tube. As for other components, Hong Kong is also trying hard to produce them on its own. Even if some of them cannot be produced, there are many suppliers overseas.
Wang Zhiqun replied: “Yes, including the picture tubes, but both are also assembly lines, just like our current factories.”
"Can we gradually produce some parts of the cathode ray tube in Hong Kong?" Yang Wendong asked again.
Any product is made up of parts and components. Although Hong Kong is already making cathode ray tubes, many of their core materials are still imported from overseas. It’s just that because Hong Kong has mastered the production capacity and technology, it can decide for itself what raw materials to choose. After having the choice, it will not be seriously strangled. However, if a breakthrough can be made, it will inevitably further increase localization and reduce costs.
Wang Zhiqun replied: "The localization of cathode ray tubes has been ongoing. Various mechanical parts can already be made in Hong Kong, but it is still not possible to produce special materials, such as special glass, anode materials, and photosensitive powder. It is almost impossible to produce them locally in Hong Kong."
"What about production in Taiwan?" Yang Wendong asked again: "Does Taiwan have the technology in this area?"
"No, Taiwan's TV manufacturing industry is the same as Hong Kong's, it's also assembly, and it's even worse than ours." Wang Zhiqun shook his head and said, "But Taiwan has a foundation in chemical industry and glass manufacturing industry, so it might be feasible to build a factory there, but we don't have the technology."
Yang Wendong said: "Then let's go buy it abroad. The Americans have already started replacing color TVs, and the technology of black and white TVs is of no use to them. As long as we spend money, we will definitely be able to buy it."
While Japan was rolling like crazy, it also accelerated the decline of many old industries in Europe and the United States. However, these old industries were advanced industries for Hong Kong or Southeast Asia. As long as companies in developing countries or regions spent money, they were willing to sell useless technologies in exchange for some cash. In history, this was how the mainland acquired a large number of old production lines and technologies after its reform and opening up.
"Okay, those parts that are not convenient to produce in Hong Kong will be placed in Taiwan," Wang Zhiqun agreed.
Yang Wendong asked again: "Where is the color TV production line?"
Black and white TVs are the present, while color TVs are the future. A small business may only consider the present, but Honor Electronics naturally has to consider the future as well.
Wang Zhiqun replied: "I originally wanted to buy a color TV production line in Japan, but the Japanese government restricted the sale of this production line to us. There is no such restriction in the United States and Germany."
"The Japanese government has imposed restrictions?" Yang Wendong nodded and said, "I remember that in 62, Japan also imposed export tariffs on electronic transistors on Hong Kong. It seems that they also regard Hong Kong as a competitor."
Wang Zhiqun agreed and said, "Yes, Hong Kong is now following Japan's path, and some light industries are no worse than Japan. Even the United States is thinking of giving Hong Kong some special tariff treatment in order to suppress Japan."
“Well, now Hong Kong has become a bargaining chip in the international economic field.” Yang Wendong shook his head and said with a smile.
The US government is not a fool. Now that Japan's manufacturing industry is rising and squeezing out its American counterparts, it is restricted by the principle of "global free trade" and the alliance between ZZ and JS. It is not easy to directly restrict Japanese companies. Therefore, choosing alternative targets has become a top priority.
Hong Kong, Taiwan, South Korea and other countries were all once favored by the Americans. To a certain extent, Taiwan and South Korea have indeed done well, but Hong Kong is not so good. One reason is that the population is too small to make it big, and the other is probably that it has closer ties with the mainland.
But in this era, the economies of South Korea and Taiwan have just begun to develop, and Hong Kong still has some influence on the Americans in this circle, which is in line with their own rights and interests.
Wang Zhiqun said: "Yes, many American companies also want to restrict Japan, but the government cannot do it. And I have another piece of news. I heard that RCA is planning to invest heavily in a color TV factory in Taiwan to sell back to the United States and expand the Asian market."
"RCA?" After hearing this, Yang Wendong immediately thought of something.
In his previous life, he had seen on the Internet the largest pollution in Taiwan's history, which was caused by RCA. They discharged a large amount of chemical compounds directly into the groundwater hundreds of meters below, and operated secretly for decades. It was not discovered until the 90s, but by that time the factory had been closed and RCA had been acquired and split up, so there was no one to sue.
Judging from this incident, Europe and the United States’ so-called concern for human rights or environmental protection is complete bullshit.
However, this has not happened yet, so Yang Wendong could not say anything. He then said, "If RCA builds a large factory in Taiwan, they will definitely bring the relevant industrial chain here, which is a great thing for us. As long as there is an industrial chain nearby, it will be much more convenient for us to make color TVs in the future."
He had some knowledge of color TV technology, which was much more complicated than black and white TVs. In Hong Kong, it was very difficult to build a comprehensive TV industry chain.
"Yes, let us build a color TV industry chain. It will probably take at least ten years for us to succeed." Wang Zhiqun also agreed and said, "But if RCA comes, then if they also expand into the Asian market, they will inevitably compete with us."
Yang Wendong shook his head and said, "That's not necessarily true. RCA's main competitor is still the Japanese. Even if we make color TVs, we will basically only make small ones first, so that Asian families who have just made some money can buy them.
RCA and other Japanese giants are still focusing on the high-end market, so they won’t have any conflicts with us in the short term.”
Yang Wendong also knew that high-end products were more profitable, but in this kind of technical field, high-end products could not be achieved without technology. In the context of the electronics industry in Hong Kong, it was impossible to succeed in high-end technology. It would be better to focus on the low-end first, build up the scale and industrial chain, and then find a way to impact the mid-to-high-end market in the future, just like Samsung in its previous life.
Another great benefit for him about RCA coming to Taiwan was that the 70s were approaching, and personal computers and arcade machines were about to appear. Both of these required high-quality color cathode ray tubes. When he entered these two most profitable emerging industries in the future, he would feel more at ease with RCA around.
"That's true." Wang Zhiqun agreed.
Yang Wendong added: "Okay, I agree to both projects. The headquarters will send someone to review them. If there are no problems, you can purchase them. Then, we will debug the two production lines in Hong Kong as soon as possible and start production."
"Okay, thank you Mr. Yang." Wang Zhiqun asked again: "Mr. Yang, the housing prices in Hong Kong have dropped by half compared to the beginning of 65. Do I need to continue to purchase industrial land near North Point?"
Changxing Group has explicitly prohibited any subsidiary other than Changxing Real Estate from entering the real estate business. However, if the property is purchased for self-use, then there is no problem. However, if it involves the acquisition of real estate, Yang Wendong's consent and the cooperation of Changxing Real Estate are also required.
Yang Wendong thought for a moment and said, "Don't buy in bulk yet. Just look at how much you need recently and buy as much as you need. It's not the time to buy land on a large scale yet."
In fact, in history, after the beginning of 66, Hong Kong real estate gradually returned to normal. Because it had fallen by half last year, the bubble was almost squeezed out. From the beginning of the year to the middle of the year, housing prices in the entire market showed a trend of gradually recovering and rising, which made many real estate people very happy.
However, other factors caused housing prices to plummet even more severely than before. The drop was so severe that it could be said to have cut through the knees. It was also because of this plunge that more than half of the real estate companies that had been optimistic about the future and had purchased properties on a large scale in early 66 went bankrupt, and the rest may have emigrated.
But he couldn't tell anyone about these things, not even his family, so he could only tell those around him that he didn't think the real estate market had reached its end.
"Okay, then I will only buy the land I need." Wang Zhiqun agreed.
Yang Wendong added: "In the past two years, in addition to the necessary business expansion, we just need to carefully build the existing industrial chain. When the time is right, we will also enter other white appliance fields;
However, the prerequisite is that Hong Kong has a container terminal, otherwise we will not be able to afford the transportation costs. "
Black appliances are small in size and high in value, so their export costs are low, while the opposite is true for white appliances. Therefore, if they are produced in Hong Kong where there are no containers, they cannot be sold after being shipped out.
Even if there were no containers in the mainland of the past, the reform and opening up would not have attracted so many foreign companies, and even without containers, the polar bears would not have collapsed.
Wang Zhiqun also understood this and said, "Container terminals are indeed very important. The use of container terminals in Europe and the United States can reduce the cost of shipping to 20% to 30% of the previous level, which is really amazing."
“Well, this is just the beginning, and the container industry will gradually improve.” Yang Wendong smiled and said, “I also invested in a container terminal in Singapore, but I only participated in it for a while;
Once Hong Kong launches a container terminal, if we take it over, we will have access to all industrial and transportation chains.”
When the right time comes, he will try to build the wharf earlier, which will be of great help to Changxing Group and the entire Hong Kong manufacturing industry.
"That's great." Wang Zhiqun said with a smile, "This way, Honor Electronics' products will be more easily able to enter the European and American markets."
Yang Wendong nodded and said, "Yes, with the dock and the ship, we can also control the transportation ourselves. In addition, other manufacturing industries in Hong Kong can also ship their products overseas through us.
Let me handle these. You should try your best to open up the industrial chain and cooperate with Changxing Industry's advantages in the plastics industry to reduce the cost of various home appliances. In this way, we will have a market or profit in the future, and we will not lose no matter what. "
"I understand." Wang Zhiqun said, "As for the motor, I can already produce it by myself, except for the copper wire which needs to be imported, so it is not difficult to make a washing machine. But a refrigerator or air conditioner requires a compressor, which has a very high technical content."
Yang Wendong agreed: "That's for sure. Refrigerators and air conditioners also need to consider noise, vibration and power saving technology, which is still very difficult."
"Mr. Yang, although we are still a bit far from the container terminal, I think we can consider researching white goods first." Wang Zhiqun suggested: "Research them first, even if we supply the Hong Kong and Taiwan markets, we can build a small factory to test the quality."
Yang Wendong thought about it and agreed, saying, "Okay, let's make washing machines first. I will also find a time to promote the container terminal project as soon as possible."
Even if he doesn't get the container terminal, as long as he has it, it will be of great benefit to his manufacturing industry. So he must promote the establishment of the container terminal, which is of great significance to the whole of Hong Kong.
Once again, if the Hong Kong government insists on giving British capital, it can also push Hutchison to take the project.
Originally, the Hong Kong government had plans for this in history, but it was delayed again and again due to the poor economy in recent years.
Wang Zhiqun agreed and said, "Okay, I will set up a new project team right away to do research and development in this area."
"Okay, the motor field also needs to be developed seriously, regardless of whether we make home appliances or not." Yang Wendong added: "If we do well in this field, we can also export it. It is small in size and much more convenient than a single home appliance."
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(End of this chapter)