Chapter 475: The Hugely Profitable Comics Industry

"Container terminal?" Trench was a little surprised after hearing this.

Yang Wendong nodded and said, “Yes, now container terminal projects have been launched all over the world, even small countries like Brunei in Southeast Asia are thinking about investing in container terminals;

Needless to say, the Governor of Hong Kong should know that this is a revolution in port transportation and a replacement for traditional port forces. As the largest cargo transshipment center in Asia, Hong Kong may lose this position if it does not transform into a container terminal in a timely manner, just like London, which would result in heavy losses.

If the wharf is lost, Hong Kong’s industrial and economic foundation will be destroyed.”

As in history, traditional British dock workers went on strike to block investment in container terminals, which led to Norway taking the opportunity to build Europe's first container terminal. Then Britain's terminal business declined sharply, and those workers eventually lost their jobs. However, Britain's former position as Europe's freight center was gone and would never come back.

The same is true for Hong Kong. Historically, it was overtaken by Singapore and many other Southeast Asian countries, and its status as a freight center was in jeopardy. However, there was a mainland behind it, which was the only bridge between the East and the West. Especially in the early days after the reform and opening up, a large amount of goods had to go through Hong Kong, allowing Hong Kong to recover. Even after the 21st century, the central government still took special care of Hong Kong and did not build too many large ports within a few hundred kilometers of Hong Kong, otherwise the Hong Kong docks would have been abandoned long ago.

In this life, Yang Wendong naturally wants to change something, perhaps not a lot. After all, he cannot change the international situation. Maybe a little better is a good thing. There will be only 700 million people in Hong Kong in the future. A slightly better situation will benefit many people.

"Mr. Yang, the investment in the container terminal is no less than that of the Hung Hom Tunnel," Trench said, reminding him, "and once this project is launched, it will inevitably cause social unrest again. You also mentioned the UK, so you know what will happen?"

The Hong Kong government is not stupid. It naturally knows the benefits of container terminals and has conducted relevant investigations. However, it would cost a lot to promote this project, not only in terms of economy, but also in terms of unemployment of a large number of workers.

Yang Wendong nodded and said, "I know, but we have to do something like this. In addition, the export volume of traditional ports has also decreased in recent years, especially for exports to the United States and Europe. A small part of them still needs to go to Japan for container transfer. These data are real."

Container terminals are interconnected. Now that Europe and the United States are beginning to transform to containers on a large scale, if other places want to do these businesses, they must also have container terminals. Otherwise, how can traditional cargo ships unload their cargo?

Of course, this change is gradual, and it is impossible for Europe and the United States to replace the docks all at once. But the trend is here, and the lower cost of container transportation will inevitably squeeze the market for traditional cargo ships.

"It seems that Mr. Yang is also very confident about the future of Hong Kong." Trench laughed.

Investing in Singapore does not actually prove that Yang Wendong is not optimistic about Hong Kong. It is just speculation by the media. But now that Yang Wendong wants to invest in the Hung Hom Tunnel and the container terminal, he must be optimistic about Hong Kong.

Yang Wendong nodded and said, "Yes, so I also want to use these two large investments to send a signal to the outside world, rather than relying on various explanations, which is meaningless."

Trench said: "I understand, but the container terminal is different from the Hung Hom Tunnel. Such a large project must be tendered and requires a long period of preparation."

"No problem, I will compete fairly with all capital." Yang Wendong agreed.

In fact, even the Hung Hom Tunnel should have had capital competition, but the project was proposed in the 50s. At that time, neither the Hong Kong government nor the British giants wanted to invest, thinking that they would definitely lose money. The Chinese capital at that time also did not have the ability to participate in this matter. Of course, their judgment was based on the economic forecasts for the future in the 50s. It cannot be said that they had no vision. After all, no one could know the future development speed of Hong Kong and the reform and opening up of the mainland.

But port terminals are different. The whole world knows that this project can make money, so there will naturally be competition. Even today, traditional port giants such as Jardine Matheson, Swire, and Wheelock may not give up.

However, as long as they wait until the middle of 67, they will have to sell many of their real estates, not to mention investing in the port. Then things will be easy for them.

Trench asked again, "Mr. Yang, this Hung Hom Tunnel doesn't seem to have any direct relationship with the container terminal, right?"

"It doesn't matter." Yang Wendong said, "But I want to wait and see the future trend of Hong Kong before deciding whether to invest. Mr. Governor, as a businessman, I have to be cautious."

The core of everything is to wait until after mid-67, not now. Anyway, it is normal to discuss such a large-scale project for a few years. After all, the Hong Kong government did not make up its mind for more than ten years, so of course it has to wait when it is its turn.

But we have to keep some hope. If we refuse, the Hong Kong government will close the project.

"I understand." Trench nodded and said, "Okay, I will organize government officials to negotiate the container terminal project."

Even the Governor of Hong Kong cannot have the final say on many major issues, and even has to seek the opinions of major British financial groups on many matters.

"Then I'll wait for good news." Yang Wendong said.

After a while, Yang Wendong said goodbye and left. Tremblay arranged for someone to call over HSBC's Sanders and informed him of the previous news.

"It seems that Yang Wendong wants to acquire the wharf before investing in the Hung Hom Tunnel." Sanders analyzed, "I guess he believes that the wharf will definitely make money, so even if the Hung Hom Tunnel loses money, he can still afford it."

Trench said, "So what you mean is that Yang Wendong deliberately proposed the tunnel first to make us all feel hopeful, and then proposed the port, and then tied them together. His ultimate goal is the port?"

"It's possible. Only in this way can it be easier for a Chinese capital to obtain the operating rights of Hong Kong's container terminal." Sanders paused and looked at the Governor: "Mr. Governor, two big projects together, aren't you tempted?"

"I'm quite excited. Now I understand why Yang Wendong proposed to invest in the undersea tunnel, which would result in a loss. It turned out to be for the wharf." Dai Linzhi said with a smile: "It's just that I can't directly approve a large project like the wharf. What he meant might be that if he can't get the wharf, he won't invest in the undersea tunnel."

"Also, the investment from Singapore may also put pressure on the Hong Kong government." Sanders added: "It seems that all this was done intentionally by Yang Wendong."

Trench shook his head and said, "Not really. They started investing in Singapore before Singapore was founded in 1965. It's impossible for them to prepare for today at that time. Who could have thought that such an economic crisis would happen today?"

"That's true. It might be a coincidence. But now it's like this. As for the dock, if Jardine Swire is not too tough, it would be most appropriate to hand it over to Yang Wendong." Sanders nodded.

The main cause of Hong Kong's economic crisis this time was not internal, but external influences, so no one could predict it. It can only be said that Yang Wendong was lucky to encounter such a thing. "Okay, I'll arrange for someone to ask Jardine Swire's opinion." Trench said again: "As for the loan, can HSBC support these two projects?"

"This is certainly not a problem. No matter how bad the Hong Kong economy is, I still have enough Hong Kong dollars in my hands," said Sanders.

"That's right." Trench nodded.

If it involves overseas investment, HSBC may not be completely sure, but within Hong Kong, any large project is easy.

Yang Wendong, who was unaware of Trench's subsequent arrangements, could only wait for the next move of the Hong Kong government after putting forward his request. However, unless the situation became most urgent, he did not expect the Hong Kong government to actively support Chinese capital in taking over the most important port project in Hong Kong.

The investment in Singapore is also a top priority for the group's future. Before the reform and opening up, Hong Kong's population of 350 million could not accommodate the various industries of the Changxing Group in the future. In terms of employment influence, the current layout in Hong Kong is sufficient, and there is no point in adding more.

Time soon came to early January 1967.

On this day, Yang Wendong saw the newly aired "Peppa Pig" cartoon on TV.

The accompanying persons were naturally Wu Hailin and Zhang Zhiyuan from Changxing Culture Company, as well as Qi Ruifan from TVB and Zou Wenhuai from Changxing Film Company.

After watching one episode, Yang Wendong said: "The content looks simple, but it should be attractive to children."

Wu Hailin smiled and said, "Yes, Mr. Yang, Peppa Pig has been sent to ITV in the UK for free broadcast, and the ratings are very high. ITV is ready to buy the cartoons after episode 10, and the price is still being discussed."

"Okay, it seems that giving it to customers for free first is indeed an evergreen trick," Yang Wendong nodded and said.

In the early days, he made sticky notes by sending them to some companies for free, and then he got orders and gained some fame. Later, many other industries were similar. When new products were launched, they would be given away for free in the early stage, and only some very expensive ones would be considered for sale at a discount, etc.

In the cultural industry, excluding the initial design and production costs, the subsequent dissemination costs are almost zero. The price is one for one person, and the same for 0 million people.

Wu Hailin said: "Yes, the Japanese version of Doraemon also entered the Japanese market in this way. Now many Japanese TV stations are asking us to buy the copyright."

"Haha, it seems that our Changxing Culture Company has achieved something." After turning off the TV, Yang Wendong took a few people to the office area next door. After sitting down, he said, "What about the toys and some derivative products?"

It is actually not important whether comics make money. As long as they can be spread, it doesn’t matter if they make a loss. The same logic applies to the Internet decades later. WeChat itself does not make money, but after having countless users, its various derivative businesses have made a lot of money.

Zhang Zhiyuan replied: "Mr. Yang, the sales of Doraemon's toys reached 370 million last year, and the data is growing rapidly every month. It is estimated that it will not be a problem to exceed 800 million this year, and our average profit for each toy is 2 yuan.

The sales volume of stickers is even higher, with the quantity of various types reaching 2000 million, and the profit per piece is about 3 cents.

In addition, many companies have asked us to buy image licenses, especially some children's products. The total quotation last year was 210 million. "

"That means the net profit of Doraemon derivatives reached tens of millions of Hong Kong dollars last year?" Yang Wendong asked.

Zhang Zhiyuan said: "Yes, Doraemon is very popular in Japan. Almost all children in Japan know Doraemon, so the relevant businessmen in Japan are also willing to spend money."

"Okay, then we will continue to promote Doraemon's cartoons this year, especially in Japan and Southeast Asia. For Europe and the United States, we will focus on promoting Peppa Pig." Yang Wendong nodded and said, "If we continue to develop in this trend, maybe one day your net profit will exceed that of Changxing Industrial."

The special thing about the cultural industry is that, similar to the Internet, once the quality of the content is good enough, the cost of dissemination is very low; unlike the manufacturing industry, no matter how good the quality is, it still has to be produced and transported, and there are even quality problems, etc., so the growth rate is very slow.

Historically, the "Peppa Pig" animation alone could bring the parent company more than $10 billion in net profit a year. Although times are different, after deducting inflation, that is likely to be tens of millions of dollars.

Of course, this is just profit. In terms of social influence, this industry is far inferior to physical manufacturing. But if this industry has enough profit, it can also support its own manufacturing industry, killing two birds with one stone.

"This is also thanks to Mr. Yang." Zhang Zhiyuan and others said.

This is not a lie. Changxing Group has been able to develop to its current level because Yang Wendong has been guiding almost every business in the right direction.

Yang Wendong asked again: "What about other comics?"

Zhang Zhiyuan replied: "The comic book Journey to the West has also been made into an animated film, which has a certain market in Japan and Southeast Asia. The related stickers are selling well, but the toys are not selling very well.

There are several other comics that have not gone beyond the Chinese community and are only popular in Hong Kong, Taiwan, Singapore or Southeast Asia. Their profitability is much smaller, with a total of only over 600 million Hong Kong dollars last year. "

"Well, it's not bad. It's impossible for every product to be a hit." Yang Wendong nodded and said, "Now that the company has funds, you can go around the world to recruit people, especially Japan. You can set up a company there and sign local painting masters. If we want to be strong in content, we have to rely on more talents."

Although there are still many classic comics in his memory, many of them are set in Japan and are not suitable for adaptation into the background of Hong Kong or Chinese society. He can only wait until a branch is established in Japan in the future.

And just like Changxing Industrial, the companies under its own umbrella relied on themselves for development in the early stages. Once they have reached a certain scale, they should also get rid of their dependence on themselves and become self-sustaining. Only such companies can be considered successful.

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(End of this chapter)

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