Chapter 462: Summary of Wealth in 1965

Chapter 462: Summary of Wealth in 1965

Chapter 462: Summary of Wealth in 1965 (1)

Since human society entered the industrial civilization, first the steam engine came, then the internal combustion engine, and then the electric motor. This is the development law of energy utilization, and the efficiency is getting higher and higher.

The few exceptions are machines that require movement, such as trains, cars, airplanes, etc., because the terminals of electricity cannot move. Therefore, in the early 20th century, internal combustion engines of cars, trains, airplanes, etc. defeated electricity. But in other fixed areas, from homes to factories to offices, electricity is used everywhere.

Even in the 21st century, trains have basically been converted to electricity, and fuel vehicles are gradually being replaced by electric vehicles. The only thing that needs to fly is airplanes, which cannot be electrified for the time being.

As long as electricity is used as the energy source, any driving will require an electric motor to convert it. This market is also very huge. If you do well in this field, you can certainly be among the top 500 companies, even if you don’t have to be one of the top 2000 companies in the world.

Wang Zhiqun replied: "Rongyao's motors have now begun to supply other Hong Kong companies and a small part of them are exported. I also plan to make copper wire myself in Hong Kong. This way, I can save a lot of costs. Buying copper wire from Japan is too expensive."

"Can we make copper wire in Hong Kong? The kind of copper wire that is a few tenths of a millimeter thick?" Yang Wendong asked in return.

Wang Zhiqun said: "Yes, there are companies in Taiwan that do it. Just buy copper rods, heat them up and then draw them thin. The equipment is not complicated. The only difficulty is that the outer layer of the copper wire needs to have a special insulating material, similar to electrical wires. As long as this is controlled well, there will be no problem.

I will also conduct tests step by step, first on the electric fan, then gradually increase the amount, and finally make other accessories. "

"Okay, I won't ask too much." Yang Wendong nodded and said, "I won't interfere with your technical aspects, but you must pay attention to the quality."

When the industry becomes too big, he usually won't take care of such small matters. One reason is that he doesn't have the time, and the other is that he doesn't understand the technology. If he gets too involved, it will affect the technical staff.

"No problem." Wang Zhiqun agreed and said, "I will also write the progress of these projects into the monthly report every month."

"Okay, thank you for your hard work." Yang Wendong smiled and said, "The New Year is coming soon. Let's make arrangements before the New Year, and then start working hard after the New Year."

The Spring Festival in 66 was very early, with New Year’s Eve falling on January 1th.

On January 1, Yang Wendong convened a high-level meeting at the group level again to report and summarize the performance of all companies last year:

"Everyone, let me briefly explain." Yang Wendong sat in the chairman's seat and said, "Last year, due to the sluggish Hong Kong economy, our group's business in Hong Kong was also affected to a certain extent;

But these are not important. We need to look at the long term. As long as the development trend is good, it will be fine. In addition, even if the business is based in Hong Kong, we must find a way to go overseas. "

After hearing this, everyone nodded, especially Zheng Zhijie, Qin Zhiye and others. Their businesses are also rooted in Hong Kong. Although they have invested in the real estate market abroad, they will not be able to generate returns this year, so the results are very bad.

After the boss stopped talking, the financial director Wang Fengzhi said, "Everyone, the three largest businesses of the group are still Changxing Real Estate, Changxing Industry and Changxing Shipping. The real estate business has been severely affected by the economy, and its business in Hong Kong is basically stagnant, while Changxing Industry and Changxing Shipping are developing well.

In addition, Honor Electronics and Watsons also achieved significant revenue growth last year. I hope everyone can achieve even higher results this year.”

Wei Zetao smiled and said: "This is also due to Mr. Yang's good guidance. The storage boxes we launched two years ago have sold very well all over the world. The suitcases and sticky hooks we launched before also had a growth of more than 10%, as did sticky notes and mouse sticky boards.

According to my statistics, the total sales of the four business units last year was 4.2 million, an increase of 13.6% over last year.

"4.2 million? Not bad." Yang Wendong smiled and said, "We need to work harder in the future and strive to break through 5 million Hong Kong dollars as soon as possible. This will be a milestone achievement."

The Hong Kong dollar is still very valuable in this era. You know, the GDP of Hong Kong as a whole was less than 150 billion last year. Of course, the production capacity of many industries of Changxing Group is now overseas, and it is not easy to compare with Hong Kong's GDP.

Wei Zetao said: "As long as the factory in Singapore is gradually expanded, I think there will be no big problem. At present, our overseas channels are also gradually increasing, and the global economy is also rising significantly. The purchasing power of Europe and the United States is also gradually increasing."

"That's good." Yang Wendong nodded and asked, "Has the new factory in Singapore started operation?"

Hong Kong is experiencing an economic crisis this year, but many parts of the world are developing well, especially Europe and the United States, which have gradually emerged from the economic downturn in the early 60s. This is a shot in the arm for Hong Kong's manufacturing industry, which relies on the European and American markets. Otherwise, today's Hong Kong real estate crisis might be even more serious. It is precisely because of the development of industry and trade that many people have enough confidence.

Wei Zetao replied: "The factory has been built, all kinds of equipment have been moved in, and local personnel training is also in progress. Currently, it is still a small-scale production, and it will take another month or two to reach maximum production capacity."

"Okay." Yang Wendong nodded and said, "The products produced in Singapore are not complicated. As long as we are sure there are no problems, we will immediately prepare to expand production capacity.
However, our investment in Singapore is of great benefit to Singapore, so you should also cooperate with Changxing Real Estate or other sister companies to ask for certain rights and interests from Singapore. "In the newly established Singapore, the unemployment rate was as high as over 10%. In this case, if a high-quality industry like Changxing Industrial went there to invest, it would certainly solve a large number of employment problems for the local government, and it was reasonable to ask for some benefits, which was also a win-win situation.

Wei Zetao smiled and said, "I understand. I am also planning to go to Singapore with Zheng Sheng after the New Year."

Yang Wendong nodded, then looked at Zheng Zhijie and asked, "Old Zheng, how are the projects in Singapore going?"

Last year, Changxing Real Estate’s major project in Hong Kong was the purchase of an old naval base site, which it will not develop after the purchase, so the core of Changxing Real Estate is naturally in Singapore.

Zheng Zhijie replied: "Mr. Yang, the design of Changxing Plaza and Four Seasons Hotel has been completed. The construction is still in the process of laying the foundation. It is estimated that Changxing Plaza can open in early 67, and the Four Seasons Hotel Singapore will be completed at the end of 67."

Large hotels have tall floors and require luxurious interior decoration, and they also need to dissipate odors, so the construction time is longer than that of office buildings of the same height, and naturally slower than commercial plazas with shorter floors.

"Hmm," Yang Wendong asked again, "What about the container terminal?"

Zheng Zhijie then replied: "I have also remitted the funds needed for the container terminal to the account of the Singapore joint venture company. This project is not under our management, and our people can only participate. I have also arranged 60 people to go there to learn and participate in the construction."

"Okay, learn more. We may need them in Hong Kong in the future." Yang Wendong smiled and looked at Zheng Yuhua and said, "The performance of Changxing Shipping last year should not be bad, right?"

Zheng Yuhua smiled and said, "Yes, Mr. Yang, our leasing business has always been very good with the Japanese company. In the past year, the ship was delayed by three days due to bad weather, and the customer also expressed understanding. In terms of rent, the Japanese company also paid promptly. According to the current trend, we can buy a new ship after three years of leasing."

"Then the first ship we purchased earlier will be able to make a profit soon?" Yang Wendong asked in return.

"Yes." Zheng Yuhua added, "In addition, the price of new ships has risen sharply in recent years. Even the ships we have in service for two years are now sold as second-hand ships at a higher price than when we bought them. Judging from the trend, the price of new ships will rise this year."

Yang Wendong nodded: "It's a bit like real estate."

Of course it is impossible for ships to maintain their value, but global trade is developing too fast. Countless countries are expanding their import and export requirements at the same time. However, only a few countries in the world can manufacture ships, and there is simply not enough time to produce them. This naturally leads to a surge in the prices of new ships and ships currently in operation.

"Mr. Yang, even the second-hand ship we bought more than ten years ago has increased several times in price." Zheng Yuhua said with a smile: "If the price of the ship is included, the profit this year is really unimaginable."

"For things that are not for sale, appreciation or price reduction is meaningless, just consider it as normal operation." Yang Wendong said: "It is just that our credit limit is a bit low, otherwise I would like to buy a ship."

Although the current ship prices are high, when the Middle East crisis breaks out, the ship prices will go crazy, and it is not a problem to double or triple them. Needless to say, the freight rates will naturally rise. It can be said that it is a feast for all ship owners. Because the freight rates have risen too high, many ship owners will force the companies they signed contracts with to breach the contract. Bao Yugang is an exception. He really can not change his principles for short-term interests.
However, his expansion was too fast in the past two years, and the banks’ support for him has been weak. It’s a pity, but this is also the way the world works. Banks don’t know the future and it’s impossible for them to go crazy with speculators.

Zheng Yuhua replied, "Mr. Yang, I have communicated with the Japanese bank. They agreed to wait until we can operate for another year this year to reduce the current debt. Then, we can continue to discuss cooperation at the beginning of next year. The same is true in Europe."

"Okay, then let's run it well for a year first." Yang Wendong nodded and said.

I would wait until early 67 and place another wave of orders. Then the Middle East crisis would break out. It would be quite cost-effective to operate this last batch of new ships myself or sell them off, especially since the timing also coincided with the lowest point of the Hong Kong real estate crisis.

Zheng Yuhua added: "Our self-operated ships, which are second-hand cargo ships in Asia, are also doing well, and shipping prices have increased by more than 3% last year."

"Well, it's hard to buy second-hand cargo ships now, right?" Yang Wendong asked again. He has been buying second-hand ships over the years just to prepare for the Middle East crisis.

Zheng Yuhua said: "Yes, at this price, many European and American shipping companies will not sell their old ships, and the competition is very fierce when they occasionally sell them."

"Well, then do your best." Yang Wendong said.

It’s already the last one or two years, which is actually just like the year before the real estate peak. Although you won’t lose money by investing in it, it’s not very meaningful.

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