Chapter 518 The wool comes from the sheep

Guo Henian smiled and said, "The Malaysian government wants to form a joint venture with you. According to Malay law, you can hold up to 7% of the shares and run the joint venture factory together.
In return, the city center of Kuala Lumpur can give you a very large piece of land for free, but it is not given for free. The Malaysian side hopes to build a Changxing Plaza and a Four Seasons Hotel. "

"Mr. Guo, such conditions are not attractive to me." Yang Wendong said with a smile: "Although I am interested in real estate, I am not interested in Malaysia."

As one of the four Asian tigers, Kuala Lumpur’s housing prices will inevitably soar in the future, but it is doubtful whether it can surpass Hong Kong or even Taiwan and Singapore;

When investing in real estate, investing in Hong Kong, Taiwan, Singapore or even Japan is much more convenient than Kuala Lumpur. At least he knows the future trends of these places.

Guo Henian was a little surprised and said, "Mr. Yang, although Kuala Lumpur's economy is not as good as Hong Kong and Singapore, it is still pretty good in Southeast Asia. The housing prices in the city center are several hundred Hong Kong dollars per square foot. A large piece of land in the city center is worth hundreds of millions?"

"If you give me a piece of land worth hundreds of millions for free, then I must spend money elsewhere." Yang Wendong shook his head and said, "Besides, my real estate capital will mainly be in Hong Kong in the next few years, so I will not consider going to Kuala Lumpur."

The wool comes from the sheep. If you want to get a piece of free land in the capital, you will inevitably pay a price in other areas. Although he is also preparing to gradually transfer some low-end industries to Singapore, it still does not include industries with higher technological content.

As for real estate, he doesn't want to get too involved in areas he is not familiar with.

Although Hong Kong housing prices will fall in 73, they will only fall by half, that is, they will fall to the level of 71. In the long run, it is just a small slope, insignificant, and far less than the wave in 67.
Therefore, he will continue to invest in Hong Kong in the future. At most, he will slow down a bit in 71/72. Such investment can last until around 1981. With such a long period of time, even if Hong Kong cannot accommodate his capital, he can go to Japan and plan the Hiroshima Agreement.
"This is beyond my expectation." Guo Henian said with a smile: "Since Mr. Yang is not interested, I won't say more;

As a Malay, I would also like to see Mr. Yang invest in Malaysia, after all, about 4% of the population there is Chinese.”

"If the conditions are right, I will consider it." Yang Wendong nodded and said, "But Mr. Guo, if you are interested, we can also cooperate to open a hotel in Kuala Lumpur. You own the property, and I will only be responsible for the operation."

"Haha, good idea, but what I want is my own hotel." Guo Henian said with a smile.

Yang Wendong did not force it, and said, "Okay, don't worry about the Malaysian government's affairs. Let's start with the sugarcane farm cooperation. When we have some achievements, we can look at other areas. How do you think?"

"No problem, I am also happy to cooperate with Mr. Yang." Guo Henian replied.

After Guo Henian left, Yang Wendong said to Zhou Haoran, who had been silent just now: “Old Zhou, you should contact Guo Henian more. This cooperation is of great significance to Watsons;
If we can leverage Guo Henian's abilities to increase our production capacity and reduce costs, it will be of great help in cost control for PepsiCo and other beverages."

"Understood. I will arrange for someone to go to Malaysia immediately." Zhou Haoran agreed. "Given Malaysia's recent development, if one day it has a certain industrial capacity, coupled with the local sugar industry chain, Pepsi may not choose us to cooperate with it."

"Yes, that's what I'm worried about." Yang Wendong added, "Also, we can take this opportunity to learn from Guo Henian's management model on the farm. Even if we have this joint venture, we may invest in our own farm in the future.

It doesn’t matter how high our level of learning is, as long as it can help our business, that’s enough.”

Zhou Haoran said: "Okay."

Yang Wendong said, "Okay, that's it. Carrefour, Changxing Industrial, and Changxing Film Company also have investments in Malaysia. After there are no problems in the next two years, we will consider further investment in Malaysia."

Now that Hong Kong is stable, we are not in a hurry to transfer production capacity, so we can take it slow. In the process, we may gain some benefits, such as the land in the city center this time. In the future, when we trust Hong Kong, we can invest further to expand the scale.

"Okay." Zhou Haoran said with a smile.

Yang Wendong looked at the bottles and jars on the counter again, and suddenly thought of something, so he asked, "How is Watsons' cosmetics business going?"

In its previous life, Watsons was acquired by Hutchison Whampoa and became part of Li Ka-shing's business empire; but now he acquired Watsons more than ten years earlier, so after the acquisition, he did not fully expand this business, but instead let it gradually preserve its strength and operate steadily.

Now, 67 years have passed, and many of the properties acquired by Changxing Real Estate are not suitable for Carrefour or Yiranzhijia. Therefore, when Yang Wendong learned about this, he allocated some stores to Watsons to specialize in cosmetics.

As for Watsons' traditional Chinese medicine, it has developed too slowly and has too many restrictions. In addition, it is indeed not as effective as Western medicine in many aspects, so it has not been promoted.

Zhou Haoran said: "Currently, we have a total of 266 Watsons stores in Hong Kong, and the average annual turnover of each store is HK$15.

In addition, I have also established overseas franchise business and am preparing to enter the Singapore and Taiwan markets.”

Yang Wendong nodded and said, "Okay, when the sales reach a certain scale, we will lower the price at the terminal and then increase sales. In this way, we will form an industrial chain." Now that capital is gradually sufficient, he is also preparing to do some businesses that have been proven by Hong Kong capitalists in his previous life. Global retail of cosmetics is one of them. This industry is relatively simple. As long as he uses capital to expand the scale in the early stage, he will be half successful.

As long as you control the channels, you control the profits. Everyone knows how high the profits of cosmetics are. Whoever controls the channels will naturally have high profits.

Even if sales are big enough in the future, we can make our own cosmetics, such as "Dabao".

"Okay, now we are researching some moisturizing products internally," Zhou Haoran said with a smile.

Yang Wendong nodded: "That's good. I won't ask too much about these internal matters. When you have achieved certain results, just tell me."

In the next half month, Watsons sent a team to Malaysia to inspect Guo Henian’s sugarcane farm in Malaysia, checked various data, and finally came to a very surprising conclusion.

When Yang Wendong received it, he looked at the data in front of him and said in surprise: "The average output of Guo Henian's farm is 1.15 times the local average?"

Zhou Haoran replied: "Yes, this is official data. We also specially arranged for people to check a lot of harvesters. Although they don't know the data, they also said that Guo Henian's farm grows the best sugarcane and is highly efficient. The harvesting and sowing speeds are much faster than other farms."

"How did they do that? They used a lot of fertilizers?" Yang Wendong asked curiously.

"It's not clear how they did it, but it's probably through management or some experience." Zhou Haoran said, "Even for something as simple as growing crops, there are huge differences between farms. For example, the famous rubber farms in Malaysia have the same area but very different production capacity, which can differ by 25%;

This also involves factors such as the amount of fertilizer used, the duration of use, the amount and timing of pesticide application, watering control, weather, etc. These are actually professional issues. The more professional the person, the better they are likely to do, and vice versa. "

"Yes, everything has a very high technical content." Yang Wendong nodded and said, "It seems that Guo Henian is also very capable in farm management, or his team is very capable."

For the same crops, there was a huge difference between the mainland and India in the past. It can be said that different places have a great influence. This aspect does have an impact, but the human factor is also very important. For example, there were serious famines in many places in Africa, but after the Chinese went there, they could easily grow a lot of grain and vegetables on their land.

In terms of farms, thanks to the investment of capital, the gap may not be exaggerated, but it will definitely exist; and commercial competition often relies on that little gap, and then with cost-effectiveness, you can get orders, expand the scale, and continue the cycle. Companies with higher costs may go bankrupt.

Zhou Haoran said: "Yes, Guo Henian is really capable. In the field of forest farms and wood panel factories, his achievements are among the top three in Malaysia. He even exports furniture himself, but he has not been able to expand due to restrictions on export transportation."

“I guess his business will be much bigger once Malaysia has a container terminal,” Yang Wendong analyzed.

The emergence of containers not only reduces transportation time and costs, but more importantly, many goods that are easily damaged along the way can be well protected by being fixed in iron boxes;
This provides the opportunity for many large household appliances, furniture, etc. to be exported in large quantities with confidence.

Zhou Haoran said: "If Malaysia has a container terminal, it will be of some benefit to us."

"In the future, the Asian region will have it, so this is not really an advantage." Yang Wendong added, "Then we should reach a joint venture with Guo Henian as soon as possible, and then purchase farms in Malaysia on a large scale, and together we will increase the production capacity of sugar."

Unlike the mainland in the past, where people often struggled with whether to return farmland to forest or forest to farmland, in many countries with large land and small populations, large tracts of arable land are wasted. There are even too many forest resources in these countries, so much that the government wants to develop it into farmland, but is unable to proceed due to funding constraints.

Yang Wendong now doesn't think highly of the profits from the farm, but he values "sugar". If he can gain a certain voice in this market, not to mention the economic benefits, he will have a certain influence in politics.

In this era of poverty, many countries in Asia are short of sugar and people's bodies are in desperate need of it.

Even all kinds of staple foods are essentially a kind of sugar. Sugar not only stimulates the taste buds, but also can quickly restore energy. For people who do heavy work outdoors, it is the best way to quickly restore energy.

Even in war, the role of sugar is second only to weapons. It can also be used as emergency medicine to quickly restore physical strength.

Zhou Haoran agreed and said, "Okay, there won't be any major problems with the cooperation. After the joint venture is completed, I will arrange for someone to negotiate with Guo Henian's people about where to purchase land to facilitate our raw material production capacity."

"Okay." Yang Wendong nodded and said, "You need to learn more about farm operations in the future."

Zhou Haoran smiled and said, "No problem, I will send someone over as well."

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(End of this chapter)

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