Chapter 463: Summary of Wealth in 1965

Chapter 463: Summary of Wealth in 1965

Chapter 463: Summary of Wealth in 1965 (2)

After the three core businesses were introduced, the next level was introduced. Yang Wendong looked at Wang Zhiqun of Honor Electronics and asked, "Mr. Wang, it's your turn."

"Okay, Mr. Yang." Wang Zhiqun said, "First of all, I would like to thank Mr. Wei from Changxing Industrial. It is also Mr. Wei's support in the field of plastics that has enabled us to achieve great results in the research and development and cost control of various electrical fields at Rongyao Electronics."

Plastic is also very important in civilian products. Normal household appliances basically contain plastic. It has low density, is non-conductive, low price, and can be made into various shapes. These characteristics combined together are perfect.

Wei Zetao smiled and said, "Mr. Wang, you are too polite. Rongyao Electronics is also a major customer of Changxing Industrial. Cooperating with major customers is also what we should do."

"Stop flattering each other." Yang Wendong said, "But Changxing Industry does have an advantage in plastics. We can consider using this to become a supplier to other large overseas companies, such as Japanese automobiles and home appliances. This will be a good market."

Changxing Industry has been able to develop to its current state thanks to its creativity, but this thing is also limited. Unlike the electronics industry, there will be countless different development opportunities in the next few decades.

An enterprise also needs to develop itself and take advantage of its existing advantages, and plastics, paper, glue, etc. are Changxing Industrial's advantages.

Wei Zetao agreed and said, "Okay, I will visit some big companies in Japan this year to see if we can reach some cooperation."

"Yeah," Yang Wendong nodded, and then said to Wang Zhiqun, "Old Wang, continue."

Wang Zhiqun continued: "Honor Electronics' main business is transistor production. Last year's production capacity exceeded 1.5 million, exceeding Fairchild Semiconductor's production capacity in Hong Kong. A small part of these transistors remain in Hong Kong, while most of them are exported to Europe, the United States and other countries, with a total value of HK$3800 million.
The second business is black-and-white televisions. This business is now operating at full capacity, with a monthly production capacity of 4.5 to 5 units, an annual production of 53 units, and a total value of HK$1.26 million.

The rest of the business is small electrical appliances such as microwave ovens, rice cookers and electric fans, with a total value of about HK$6000 million.”

"It seems that the scale of Honor Electronics is gradually approaching that of Changxing Industrial." Yang Wendong said with a smile.

Wang Zhiqun said: "From the sales data, it is close, mainly because the value of TV sets is too high. The production capacity of 50 sets is very large, but the profit is not high, far less than Changxing Industry or real estate and shipping."

"It doesn't matter. Just expand the scale first." Yang Wendong didn't care much either: "The prerequisite for high profits in the electronics industry is to have technology. Once you have enough income, you can then master technology and improve the industrial chain, and then you can gradually obtain high profits."

Even if the electronics industry has creativity, it still needs technical support. For example, arcade machines, personal computers, etc. Creativity is useless without technology. Even if it is made, the cost will be high due to insufficient technology. Even if it occupies the market first with creativity, it will be surpassed by latecomers later.

For example, Apple was the first to launch a computer, but subsequent research and development failures led to its decline in the mid-80s, and even its founder Steve Jobs was kicked out of the company.

Right now, Honor Electronics does not need to pursue high profits. It should first build a good market and then develop other things when the time is right.

"Okay, thank you Mr. Yang for your support." Wang Zhiqun replied.

Yang Wendong nodded, then looked at Liu Huayu of Carrefour and asked, "Mr. Liu, the economy is not very good this year. How is Carrefour's performance?"

Liu Huayu replied: "Mr. Yang, our sales this year increased by 2.8% year-on-year, a total of HK$1.07 million; this is a statistic in the economic downturn, but fortunately, supermarkets sell basic necessities, which people always need to buy. In addition, we have a stronger ability to control costs and lower prices, so many people will come to Carrefour specifically to shop."

"Okay, as long as it can be stabilized." Yang Wendong asked again: "What about Singapore?"

Carrefour also entered the Singapore market with the group in the middle of last year. For Singapore, which currently has no supermarkets, this will definitely be a dimensionality reduction attack. As long as Carrefour occupies the market first, or occupies an advantageous position, then its presence in Singapore will be stable in the future.

Liu Huayu said: "We have opened two stores in Singapore. Most of the goods are shipped from our headquarters in Hong Kong, and a small part is purchased locally. We intend to gradually cultivate a local procurement chain.
There are another 6 stores. I have already bought the land with Mr. Zheng, and the buildings are under construction. It is estimated that they will be gradually opened in April or May this year."

"Okay, then this year's task is to focus on operating the Singapore market well." Yang Wendong said: "If we operate well in Singapore, we will have the foundation to gradually expand to other parts of Southeast Asia;

The market in Hong Kong is limited. Even if we monopolize it, it won’t work. The same is true for Taiwan next door. Southeast Asia will be the foundation of our supermarket in the future. If we can gain a foothold in Southeast Asia, then the various finished products of other subsidiaries of the group will be easier to enter the Southeast Asian market, so your mission is very important.”

Any large supermarket chain has a basic base. Although Yang Wendong is optimistic about the mainland, it will still take more than ten years before the reform and opening up. Ten years after the reform and opening up, there will be great restrictions on foreign-funded service industries. Therefore, there is no need to think about this market for the time being. The only option is Southeast Asia, which has no local supermarket brands.

Its other industries are also dependent on Southeast Asia. If Carrefour opens a large number of supermarkets in Southeast Asia, it will be of great significance.

"I understand, Mr. Yang." Liu Huayu said.

Yang Wendong looked at Zou Wenhuai again and said, "Mr. Zou, the expansion of your overseas cinemas is the same. You should expand gradually and in a planned manner. If your expansion is successful, Hong Kong movies will be popular in Asia, and Hong Kong stars will have enough fans in Asia. This will also make it easier for our group and even Hong Kong's manufacturing industry to enter the Asian market."

Wrinkle said, "Yes, Mr. Yang, last year I opened three new cinemas in Singapore and one in Malaysia. As long as I am sure that the business is OK, I will expand gradually."

The expansion of the cinema chain does not require just money. The most important point is the location. Only when there are enough people around, even Chinese, or locals who can accept Hong Kong films, will the construction of the cinema have economic value.

"Real estate in Hong Kong is not doing well at the moment, so you don't have to worry about it. Just invest in Southeast Asia." Yang Wendong added, "Hang Seng Bank is also preparing to set up business in Singapore. You can cooperate with them more. They can't take on projects that are too big. Your cinema project is quite suitable."

Hang Seng Bank was badly damaged in the wave of bank runs at the beginning of last year. Yang Wendong's investment of 5000 million Hong Kong dollars was almost lost, but the Ho family also saved their own business. After a year, it gradually returned to normal. In November last year, Hang Seng Bank also went to Singapore and established its first overseas branch.

Zou Wenhuai agreed and said, "Okay, I'll visit Hang Seng Bank after the New Year."

Yang Wendong added: "In addition to investing in theaters, we must also do a good job in filming. Only good movies can occupy the Southeast Asian market. Otherwise, even if all the theaters are mine, it will be useless."

"I understand." Zou Wenhuai nodded and said, "I have also prepared several movies for the Chinese New Year this year. After the results come out, they will be released in Southeast Asia."

"Okay, tell me after the results come out." Yang Wendong said. He is not very expectant about how much money the movie can make, it is just the beginning, and he doesn't care much about the content of the movie. If it really becomes a hit, he will go and watch it.

Zou Wenhuai agreed: "Okay."

Yang Wendong looked at Qin Zhiye again and asked with a smile: "Old Qin, how are you doing?"

Qin Zhiye said ashamedly: "Mr. Yang, I am losing money here. The advertising business has suffered heavy losses. Even TVB is the same. Various real estate companies are not placing advertisements. Although our brother companies have provided support, it is still not enough."

"Well, it's okay. I expected it." Yang Wendong smiled and said, "Don't be discouraged. Just wait for the economic recovery. Also, be prepared. If the time is right, you can also acquire other newspapers. We are not the only ones having a hard time at this time."

"Acquisition?" Qin Zhiye's eyes lit up.

Yang Wendong said: "Yes, we are acquiring newspapers with different business categories from ours. A large newspaper group cannot rely on only two newspapers. The future business also needs to be differentiated."

Not to mention newspapers, even Internet companies in the past wanted to do everything, but there were related genes within the company and it was impossible for them to succeed in everything; the same is true for newspapers today. A newspaper generally has its own positioning direction, and different newspapers can be said to be in misaligned competition.

If you want to be a top media group, you must have newspapers with different positioning to cover everyone in a region.

"Okay." Qin Zhiye replied happily.

Yang Wendong smiled and asked Zhang Zhiyuan: "Mr. Zhang, Changxing Culture's main business is overseas. The Hong Kong economic crisis has little impact on you, right?"

Zhang Zhiyuan replied: "This has little impact. Nowadays, more than 8% of Changxing Comics Weekly are sold overseas, and the same is true for related derivative products. Last year's total turnover was HK$2900 million.

The core business this year is to promote Doraemon and its cartoons. Given Doraemon’s popularity, it may not be a problem for this year’s performance to double.”

"Well, this is also the advantage of the cultural industry. As long as there are achievements, it can grow rapidly." Yang Wendong said with a smile.

The cultural industry is just like the Internet business. Newspapers or books can be produced quickly, and cartoons can be sold globally once they are made. The only problem is that they have to be translated into the local language. But it is much better than other physical industries.

"Yes." Zhang Zhiyuan nodded and smiled.

In fact, Changxing Culture has another point, which is the profit margin report, but it is not allowed to talk about profits in this group meeting.

"Then the last one is Watsons." Yang Wendong looked at Zhou Haoran and said with a smile: "Watsons' performance was pretty good last year, right?"

Zhou Haoran replied: “Yes, Mr. Yang, Watsons’ core businesses today are food trade, food production, beverages, sugar production, as well as cosmetics and pharmacies, but these two have very small shares;

Last year's total turnover was HK$1.7 million, but HK$8000 million of that was from food trade. This may seem like a high output value, but it's all hard labor with a very low profit margin. Watsons' core is still beverage and food production, but around HK$6000 million is from OEM for PepsiCo, and only around HK$3000 million is truly ours."

"3000 million is already pretty good," Yang Wendong said. "It only looks average in our company, but in the eyes of the outside world, it is one of the largest food and beverage companies in Hong Kong."

As a traditional industry, although there are some innovations in "tea drinks", its competitiveness is very limited. Therefore, the slow development of the beverage and food industry is what Yang Wendong expected. This is because he has strong financial resources and controls shipping. Otherwise, ordinary companies would not be able to make even 300 million after several years of development.

"Yes." Zhou Haoran also agreed.

Yang Wendong added: "Watsons' industry is still heavily dependent on channels. The head office will also do its best to open up channels for each subsidiary, but you also have to work hard. On the one hand, you can open up channels on your own.
On the other hand, we can also run the factory seriously, make high-quality products, or innovative products, or find ways to reduce costs, which will also be accepted by more overseas distributors."

"Understood, OK." Everyone answered.

Obviously, this sentence is not just for Watsons, but for everyone.

Except for a few industries rooted in Hong Kong, other subsidiaries of Changxing Group are mainly focused on overseas markets. The current strategy of the group is that the headquarters is responsible for the large-scale expansion of channels. The boss Yang Wendong often makes the final decision on these overseas layouts.

But the subsidiaries cannot just wait to be fed. They need to know what they should do. After all, all the companies were led by Yang Wendong. They have been gradually improving from the entire industrial chain to the channels. Changxing Industrial's plastics industry has already set an example. All companies need to do next is to work towards this direction.

After the meeting, Yang Wendong said, "Everyone, the New Year is coming soon. Sister Wang will put your bonuses in an envelope and you can take them away."

"Thank you, Mr. Yang." Everyone said almost in unison.

We all work to make money. Who doesn't like year-end bonus? Especially Yang Wendong is quite generous and he gets a lot of bonus at the end of the year.

Yang Wendong added: "This is what you deserve. In addition, other people in the group will also receive year-end bonuses, which will be about one month's salary on average. This is my way of thanking all employees."

In those days, Hong Kong factories didn’t actually have year-end bonuses, and it was good enough to be able to pay wages on time;
However, Changxing Group positions itself as a high-welfare enterprise. It's not just because Yang Wendong is kind-hearted, but also because a high-welfare enterprise can continuously attract high-quality talents to join. In this way, the company can ensure the stability of product quality and technological innovation. In the long run, this is more cost-effective and can also gain a good reputation.

After the meeting, Yang Wendong arranged for everyone to go next door to get some cakes from Maxim's Foods as gifts for the New Year.

Money is money, but you also need things. The same is true for ordinary workers. In addition to the year-end bonus, they also have some grain, meat, cooking oil, etc.
PS: Please give me a monthly ticket
(End of this chapter)