Chapter 476 Summary of Wealth in 1966 [Seeking monthly tickets at the end of the month]

Chapter 476 Summary of Wealth in 1966 [Seeking monthly tickets at the end of the month]

Chapter 476 Summary of Wealth in 1966 [Seeking monthly tickets at the end of the month]

Zhang Zhiyuan said: "I understand. I have also registered a branch in Japan."

"Okay." Yang Wendong didn't ask any more questions. He then looked at Qi Ruifan and Zou Wenhuai and asked, "How were the results of your two big and small screens last year?"

Qi Ruifan said, "Mr. Yang, TVB is the only wireless TV station in Hong Kong. Last year, its average ratings were about 71%, and its turnover was 530 million Hong Kong dollars. After deducting early depreciation, its total profit was about 61."

"The real estate market was better only in the first half of last year, so it was good enough to be able to make a profit," Yang Wendong nodded.

For regional media or television stations, local real estate companies have always been major advertising clients, even in the mainland in the past, because from a city's perspective, real estate sales must be the largest industry.

Qi Ruifan said: "This is also some funding from our internal sister companies. In addition, Hang Seng Bank also asked us to do a lot of advertising."

"That's good too. Hang Seng will be one of your stable sources of income in the future," said Yang Wendong.

Under his persuasion, Hang Seng Bank also began to keep a low profile in Hong Kong and seriously developed its overseas banking business, with Singapore as its first stop. However, no matter how low-key it is in Hong Kong, it is still one of the top three banks in the country and it is impossible for it to give up its industry here, because its advertising investment is only less than before, not gone.

In addition, when Hang Seng Bank was hit by a run the year before last, Changxing Media and TVB helped a lot. Therefore, in return for the favor, a large number of advertising orders naturally went to TVB.

"Yes, Mr. He has also been to TVB headquarters." Qi Ruifan said: "If we need a bank for the location selection of urban TV series within TVB, we will also choose Hang Seng Bank."

"Okay, we are also a major shareholder of Hang Seng, so we can treat it as a sister company." Yang Wendong said again.

In fact, he is already the largest shareholder of Hang Seng Bank. If he really wants to seize power, it is legally possible, but there is no need for it.

He did not have a team for the banking industry, and Ho Sin Hang was good at banking, so it would be better for him to run the business with peace of mind. At the same time, he also needed the support of HSBC, Standard Chartered, Citibank and other banks in other industries, so he did not need to hold bank shares in name for the time being.

Zou Wenhuai said: "Mr. Yang, last year Changxing Film Company produced a total of 26 films, of which one grossed over a million, four grossed over 50, and a total of 4 grossed over 30. The total box office in Hong Kong exceeded 16 million.

These films were screened in their own theaters in Southeast Asia, with a total box office of 1600 million. In addition to foreign films in other countries, Changxing Film Company made a total profit of 860 million Hong Kong dollars last year.
The cinema chain's total turnover in Hong Kong and Southeast Asia was HK$3900 million, with a net profit of HK$1138 million."

"The total amount is almost 2000 million? That's not bad." Yang Wendong nodded and said.

Zou Wenhuai said with a smile: "This is also because we now control most of the cinema chains in Hong Kong, and there are more and more cinema chains in Southeast Asia. All sales are in our hands, so we can get such profits."

"Well, okay, then we will continue to expand our cinema chains this year, both in Hong Kong and Southeast Asia," said Yang Wendong.

The film industry is very profitable. In the history of Hong Kong, before the rise of real estate, Run Run Shaw became one of the top ten richest people in Hong Kong by relying on movies and cinemas. Now, he is much better than Shaw Brothers in both film shooting and cinemas, so it is normal for him to get a higher return.

However, it is only the beginning. Although the cinema chains in Hong Kong now cover most areas, the population of Hong Kong will double in the future, so there is still room for growth. As for Southeast Asia, it goes without saying that the current achievements are only achieved in areas where Chinese people live. If non-Chinese areas can be developed, then sales will be doubled several times.

It's just that it's difficult to get them to accept Hong Kong movies, so they can only rely on Li Xiaolong in a few years. Before that, he can set up enough theaters in Southeast Asia, even if they only play local movies in the early stages, and then start playing Hong Kong movies after Li Xiaolong's movies come out.

"Okay, no problem." Zou Wenhuai said with a smile: "My cooperation with Hang Seng Bank is also very good. In Southeast Asia, basically as long as I ask for a loan, Hang Seng will lend me a loan, and the amount is very high."

"That's because He Shanheng knows that even if you lose money, I won't deny it." Yang Wendong shook his head and said.

This logic is definitely correct. Even if his industries make losses, as long as the losses are not too great, he will not divest assets and cheat the cooperating banks. This will only damage his reputation and credibility in the financial field.

Not to mention that he is a major shareholder of Hang Seng Bank, so he would never cheat his own bank. Moreover, no one in Hong Kong now doubts that Yang Wendong's investment direction will be problematic, so the risk to the bank is naturally very low, so Hang Seng dares to roll up its sleeves and do it.
Zou Wenhuai said: "Don't worry, Mr. Yang, I will also control the risks. I will do a good job of investigation in advance for the acquisition of each Southeast Asian cinema to ensure the interests of the company."

"Okay, I believe you." Yang Wendong added: "Remember, you can buy any property in any major city in Southeast Asia, as long as you can ensure that you don't lose money in the future."

Although the future changes in housing prices in Southeast Asia are not very clear, in the long run, before Soros attacked Asian finance in 97, the economy of the entire Southeast Asia was very good, and I can now invest with confidence.

Not to mention, after the Southeast Asian economy takes off, people's demand for entertainment will also increase, and cinemas will definitely be an investment project with lucrative returns.

"Okay." Zou Wenhuai agreed. He also knew that another core purpose of the group's willingness to support the expansion of cinema chains was for real estate.

After the meeting, Wang Fengzhi, the top financial lady, knocked on the door and entered, saying, "Mr. Yang, the financial data of Changxing Industrial, Honor Electronics, and Watsons have also come out."

"Okay, let me see it." Yang Wendong immediately put down the pen in his hand and took the document.

In previous years, Changxing Group held a meeting at the beginning of the year, inviting all senior executives to attend, and then report and summarize the achievements of the previous year, as well as the plans for the next year.

However, we did not do so this year because the situation in Hong Kong is a bit sensitive right now, and several subsidiaries have made large-scale investments in Singapore. As a result, many things have begun to be kept confidential internally. Only those involved and those at the headquarters know about it, and the less they know, the better.

Therefore, each company also submits the financial data to the headquarters, which is then unified by the headquarters' finance department and then reviewed by Yang Wendong. Wang Fengzhi said: "Last year, Changxing Industrial's turnover was HK$4.68 million and its net profit was HK$8300 million. The production in Hong Kong is similar to last year, and the main increase came from the factories in Taiwan and Singapore."

"I will increase the production capacity in Taiwan and Singapore this year." Yang Wendong nodded and said, "Then the output value is expected to be higher this year. How about the sales?"

Even if what happened in Hong Kong today had not happened, appropriate industrial transfer would be necessary to form three major production bases to avoid insufficient production capacity on one side due to political, natural disasters or man-made reasons.

Wang Fengzhi said: "The market is still growing. Even the earliest post-it notes are still not used by many office workers today. Wei Sheng is also working hard to expand the market. However, we also have competitors in each industry, so the advertising investment is relatively high."

"That's okay. Advertising investment and competition are all expected." Yang Wendong added: "Appropriate competition can actually attract more customers."

Several money-burning wars on the Internet in the past were actually this phenomenon. Although most Internet companies burned themselves to death, they also successfully made netizens accustomed to group buying, food delivery, online car-hailing, etc.

The logic is the same for traditional industries, but it is slower and takes longer.

"Mr. Yang is right. The competition between Coca-Cola and Pepsi-Cola has indeed made many people know about cola." Wang Fengzhi continued, "Watsons' performance last year was also very impressive, with annual turnover of HK$2.1 million. The largest increase was in orders from Pepsi-Cola. After we were able to produce sugar ourselves, production costs fell further, and Pepsi also began to give us orders from the Japanese market."

"Does that mean Pepsi's factories in Japan will have to be closed?" Yang Wendong asked in surprise. This kind of thing should not have happened before in history.

Wang Fengzhi said: "That's not so clear. This kind of closure and replacement will definitely take a long time to complete. Even if Pepsi has this idea, it is impossible to tell outsiders. And I think at most it will reduce the scale of production, not shut down."

"Yeah, that's right. If Pepsi wants to sell safely in Japan, it's impossible to import all of it." Yang Wendong nodded.

Wang Fengzhi went on to say: "In addition to Pepsi's OEM business, our own industry, herbal tea beverages, have also entered the Japanese and Southeast Asian markets with the help of some of Pepsi's channels. Last year, a total of 3900 million bottles were sold. In addition, there are ham sausages, which are even more popular. Last year, 1.3 million pieces were sold, totaling HK$1780 million. This data is just the beginning. Currently, supply is in short supply in Europe and the United States."

"Do other food manufacturers make sausages?" Yang Wendong asked.

Wang Fengzhi said: "I heard from Mr. Zhou that they already have one, but the scale is not large, and the packaging model is not as good as ours, and they can't compete with us."

“Okay, not to mention monopoly, if we can take over 30% of the global market, we will become a top food giant.” Yang Wendong said with a smile.

In the past, many ham sausage companies were among the world's top 500. Now we have the first-mover advantage, some technological advantages and various production advantages. Our goal is slightly higher than Shuanghui, but it is not too high.

Add instant noodles, beverages and so on, it should not be difficult to build a Fortune 500 company in the future.

"Yes, I have eaten this ham sausage many times and I don't feel sick of it. It can be used as a staple food or as a snack. It is much better than sausage." Wang Fengzhi said with a smile.

Yang Wendong nodded: "Yes, ham sausage can be said to be a very perfect food, even better than instant noodles."

Ham sausage can be conveniently used for military, civilian, exploration, disaster relief and so on. It can ensure food hygiene even without boiled water. So it is not just about making money. Perhaps this invention, if made ahead of time, can save many people.

Wang Fengzhi continued, "Last year, Watsons' total profit was HK$2870 million. The core profit sources were PepsiCo OEM, instant noodles and ham sausage. There are many other businesses and projects, but even if they are added together, they cannot compare to these two."

"It's okay. It's good to have more other businesses. Maybe one of them can make achievements in the future." Yang Wendong said nonchalantly: "Besides, the food industry can't just do a few things to make money."

Any large food group, even Coca-Cola, has many beverages under its umbrella. PepsiCo has even more industries. The same is true for other giants such as Nestlé and the future Master Kong in mainland China.

The core reason is to use two or three brands that sell very well to drive the consumption of other foods. This is also the power of the brand. For example, after Master Kong instant noodles were successful and deeply rooted in people's hearts, many people were willing to believe in the launch of various beverages.

And no one can guarantee that their core products will continue to sell well in the future. Even for instant noodles and sausages, the market may shrink, or the brand may perform worse and worse, etc. Therefore, cooperation from other industries is also needed.

Wang Fengzhi added: "Honor Electronics also achieved better results last year, especially in the field of televisions. A total of 72 units were produced last year, with an average factory price of HK$310 per unit, which is more than 2 million. Together with other electrical appliance businesses, last year's turnover was HK$3.85 million and net profit was HK$4163 million."

"It seems that our several export-oriented industries are gradually catching up with Changxing Industry in scale." Yang Wendong said with a smile.

Wang Fengzhi said: "Yes, although Changxing Industrial's products are very innovative, the market is not large, far less than food and electronic products. Changxing Industrial had a great advantage in the early days, but Honor and Watsons have developed faster in recent years."

"There is no solution to the problem of industry ceiling for the time being." Yang Wendong also said: "Take Honor Electronics for example, all its small products combined are not as good as a TV, and that's because the TV market is too big."

The market for niche industries is limited, and there may be few competitors, so it is easy for early-stage startups to succeed. The opposite is true for mass industries. Early development is more difficult, but if it develops better and better, with appropriate creative help from time travelers, a large amount of financial resources, and a complete industrial chain, then the scale can easily catch up with the former.

In the past, after 2020, many companies in mainland China flocked into the electric vehicle industry. In addition to the fact that this was a new opportunity, it was also because the automobile industry is the world's second largest industrial chain, with a scale of more than one trillion US dollars.

"Yes, Honor Electronics is already researching washing machines and refrigerators." Wang Fengzhi said with a smile: "Once these two products come out, Honor's scale will be greatly expanded."

PS: Please give me a monthly ticket at the end of the month
(End of this chapter)