Chapter 464 Amazing Annual Profits

Chapter 464 Amazing Annual Profits

Chapter 464 Amazing Annual Profits
After the heads of the subsidiaries left, Wang Fengzhi came in with some documents and said, "Mr. Yang, the profit data of each subsidiary has come out."

The operating data within the group does not need to be kept confidential because the scale cannot be concealed, but the net profit is a secret that only the headquarters can know. Each subsidiary only needs to know its own situation.

Although we can sometimes guess, it is impossible to guess accurately. Only the headquarters has the data of all subsidiaries, and even at the headquarters, many people are responsible for different businesses and are not allowed to disclose company secrets to each other.

"Okay, let me take a look." Yang Wendong took the information and read it carefully.

In fact, he knows the approximate data, but he also has to look at the complete financial data at the end of every year.

Wang Fengzhi explained: “Last year, Changxing Industrial still had the highest net profit, with the combined net profit of the four divisions reaching HK$7763 million;
The second place is Changxing Shipping, with a net profit of 4100 million, but these do not include the cost of purchasing new ships. These costs will be depreciated after the ships are put into operation in the future, including the new ships we are already operating. The same logic applies. "

"Well... just follow your financial calculation method." Yang Wendong nodded and asked, "What about Changxing Real Estate? There was no profit last year?"

Land prices have been falling since 65, so Yang Wendong naturally would not let Changxing Real Estate do anything else. In Hong Kong, it basically has no other business income except collecting rent.

Wang Fengzhi said: "Yes, last year Changxing Real Estate's income was very low, with a net profit of only more than 300 million Hong Kong dollars. The main source of income was rent. However, not all rental income was not affected by the real estate crisis. Many businesses went bankrupt, and some did not sign long-term agreements. The income from this area also fell sharply.

In addition, many properties were purchased with loans in the early days, and the rental income was also needed to pay the mortgage, so the returns were not high.

As for the old naval site and investment in Singapore purchased in the second half of last year, in principle, they are the same as new ships and need to be depreciated after subsequent operations, so they are not included in this year's profits. "

"Okay, more than 300 million is enough." Yang Wendong said with a smile: "The year before last, Changxing Real Estate cashed out and made more than million, which is much better than Changxing Industrial."

During the real estate crisis, we should not think about making money, but spending money and buying at the bottom. It is more meaningful. However, it is not the time yet, so we have to keep on doing everything for now.

Wang Fengzhi continued, "Like Changxing Real Estate, Changxing Media and Carrefour are the same. The main business of these two subsidiaries is in Hong Kong. When the Hong Kong economy ran into problems, they were having a hard time and were all in the red.

So I deliberately transferred the depreciation of infrastructure equipment to the future, and then depreciated it when I made a profit. This is also a legal way to avoid taxes. "

Yang Wendong said: "Alright, that's a solution. What about Watsons and Honor Electronics?"

Wang Fengzhi replied: "Both Watsons and Honor Electronics have achieved good results. Watsons' net profit last year was 1790 million, with an average profit margin of about 10%. However, the profit margin for PepsiCo is only about 5%. The profit margins of our own products are much higher, with the highest profit margin of 30% for herbal tea.

Honor Electronics' net profit last year was 3260 million. Its various electrical appliances have high profit margins in Hong Kong and overseas. However, in order to promote the brand, it also spent a lot of money on advertising operations. Last year, the advertising investment was 2100 million. "

"That's fine. We still have to invest in advertising." Yang Wendong said, "Honor will enter more home appliance industries in the future. As long as the brand is promoted, the subsequent costs will be reduced a lot."

Suppose a brand is number one in a region making electric fans, then when it makes other home appliances, although consumers may not trust this brand of home appliances, at least they know the name and don't have to worry about after-sales problems, which is a great help.

Moreover, in terms of after-sales service, if a product already has an after-sales point, it is much more convenient to add other products than to rebuild the after-sales points separately.

"Yes, to build a brand, the initial investment must be much higher." Wang Fengzhi also agreed and said: "Also, Changxing Culture has a higher profit margin. Comic newspapers are a little better, only about 20%, but some stickers and toys have a profit margin of more than 200%.

Last year, Changxing Culture's total profit was 1100 million, with a profit margin of 40%, and this was because a lot of money was invested in the production of animation."

"I know this. The cartoon itself won't make much profit, but if it is broadcast in many places, the various peripheral derivative products will be the bulk of the profits." Yang Wendong nodded.

Whether it is cartoons or comic books, there is no need to make a profit. All they have to do is sell them to everyone at the lowest possible cost. As long as there are enough people who like them, they can make ten times the profit from various peripheral products.

This logic is actually very similar to the Internet. The software itself attracts users for free, and then finds ways to attract other profitable industries. However, for traditional industries such as comics, it is really impossible to give away newspapers for free. At most, they can be sold at a low price.

Wang Fengzhi said: "Yes, there were some other investments at the group level last year, such as the acquisition of KFC and the investment in Hang Seng Bank. Because there was no cash out, I did not include them in the group's profit table.

When these industries have operating results in the future, or when we cash out one day, I will include them in the calculation.”

“Yes, KFC will not be able to grow big in the short term. As for Hang Seng Bank, it is an investment. Even if it goes public one day, unless we cash out, we will just count it as company assets. We do not count the appreciation or depreciation of real estate and stock markets in the annual profits.” Yang Wendong continued.

If these financial data are included in the financial report, it will only affect the actual results of the industry. For Changxing Group, the core is still industry and some service industries, not finance. No matter how much money finance makes, Yang Wendong is prepared to rely on it to support his several core industries.

Wang Fengzhi continued, "I understand. According to various data, the group's net profit last year was HK$1.7 million, which has exceeded HSBC." "We also rely on overseas to achieve today's results." Yang Wendong said, "If it was only in Hong Kong, it would basically be impossible to surpass HSBC."

Even HSBC itself has become one of the top ten banks in the world by expanding overseas.

Wang Fengzhi nodded and said, "Yes, Changxing Industry, Changxing Shipping, Watsons, and Honor Electronics all rely on overseas. Even Changxing Real Estate is now focusing on investing in Singapore."

"Okay, that's it." Yang Wendong added, "It's still the same old rules. Before the Chinese New Year, the company will distribute more benefits to the group's employees. The Finance Department must cooperate with the headquarters' anti-corruption department to conduct an investigation and ensure that there are no problems. If there are any problems, call the police immediately."

Corruption is a big problem for any large group. It is because some managers hold too much power. Although their income is not low, it is far less than the money or goods that pass through their hands.

Therefore, internal anti-corruption is also a top priority of Changxing Group. It has always adopted a high-pressure policy. A dam thousands of miles long can be breached by an ant hole. This saying is also a summary of the wealth of the ancients. In the early stages of corruption when it is small in scale, it is not taken seriously. Once internal cliques and factions are formed, it becomes difficult to deal with, just like cancer cells.

Wang Fengzhi agreed and said, "Don't worry, Mr. Yang, I know what to do."

The anti-corruption measures within Changxing Group are very strict. Sometimes they would rather spend 10 yuan to investigate evidence of embezzlement of 1 yuan, just to deter others.

……

The entire group's accounts were settled at the end of the year, so Yang Wendong didn't have anything major to do before the Chinese New Year. Naturally, there were dedicated people to take care of the various small matters.

Time soon arrived and it was New Year's Eve.

"Swish, swish, swish~" A large number of fireworks shot upwards on the grass, and when they reached the air, they exploded with a loud bang.

"It's fun~" Several children of the Yang family were watching the fireworks from a distance. Every explosion was met with their childlike laughter and they clapped their hands diligently.

Yang Wendong and others were also staying nearby, watching the various fireworks. In an era without mobile phones, coming out to watch the New Year's fireworks was also very exciting.

"There will be something even more interesting later. I specially commissioned someone from China Resources to buy it from the mainland." Yang Wendong said with a smile.

Setting off fireworks during the Spring Festival is a traditional Chinese festival. Many of Hong Kong's fireworks are imported from the mainland. However, due to many fire accidents in the early years, the Hong Kong government began to restrict the setting off of fireworks in crowded places, while there are naturally no restrictions in some rural areas or villa areas.

"Okay!" Bai Yushan also smiled happily, and by the way, she fiddled with the camera in her hand and kept taking pictures of the flames above.

The second daughter of the Bai family grew up in a well-off family. She has been exposed to photography since she was a child, so she knows how to play with a camera. In this aspect, Yang Wendong and Su Yiyi are far inferior to her.

After a while, even bigger fireworks spread out and illuminated the entire sky, like a giant flower. It was an unforgettable sight.

"Let's go home. TVB has prepared a Spring Festival Gala with many entertainment programs." Yang Wendong said with a smile: "From now on, the whole of Hong Kong will have programs to watch during the Spring Festival."

Although ATV has been around since 57, it is a British-owned TV station and has to promote Cantonese or Mandarin programs due to market demand. However, the level of effort put into it is very average, and there are even very few TV dramas. They just take advantage of the fact that many people in Hong Kong have no entertainment programs and have to watch them, and they charge a fee for it.

Things were naturally different after TVB came out. Even though there were no competitors, Yang Wendong required the company to be divided into several departments, which then competed with each other for ratings in order to have good programs to watch. The same was true for the Spring Festival Gala. Several departments did their own work, and then summarized who did the best, and those who did well were rewarded. This can be regarded as a way to prevent inaction due to monopoly.

After everyone goes home and turns on the TV, the Spring Festival Gala is about to begin.

Bai Yujie came out from downstairs, and Yang Wendong said with a smile: "Yujie, you missed the fireworks just now."

"Yeah, I saw it through the glass upstairs as well." Bai Yujie replied with a smile.

Bai Yushan immediately walked forward and turned off the volume of the TV.

"What's wrong?" Yang Wendong asked with some confusion.

Bai Yushan went over to support her sister, glanced at Yang Wendong, and said, "It's nothing serious, you're just going to be a father again, Yujie is pregnant."

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(End of this chapter)