Chapter 604 Summary of Wealth in 1970

Chapter 604 Summary of Wealth in 1970

Chapter 604 Summary of Wealth in 1970
Time soon came to 1971. This year was very important to many people in Hong Kong because the "Qing Dynasty" had completely ended;

When Britain first acquired Hong Kong in the early years, although the British Empire was still at its peak, its ability to deploy long-range troops was very weak. In addition, due to its own policies, the legal aspects were all based on previous laws. For Hong Kong, naturally, many of them were based on the laws of the Qing Dynasty.

For example, in terms of the death penalty, if a Chinese is sentenced to death, he will be beheaded, but if a British person commits a capital crime, he will still be hanged. In short, in this regard, it is still much better than in the good old days, and it is barely acceptable compared to the bad times.

The marriage laws in the Qing Dynasty laws were also adopted in Hong Kong. Therefore, early Hong Kong men could legally marry concubines. However, influenced by Western culture, "concubines" still had human rights, and it was not like in ancient times where the terms "first wife" and "second wife" eventually evolved. Of course, some ancient wealthy families still abided by the ancient teachings, but they did not dare to treat people as "ancient concubines" and dispose of them at will.

This continued until early 1971, when the Hong Kong government officially announced that it would abolish the Qing Dynasty laws. From then on, most of Hong Kong's laws would follow British laws, with a few minor changes based on its actual situation.

A legal policy that was the envy of men in countless other countries around the world has disappeared.

On January 1, at the Four Seasons Hotel, Yang Wendong called his two brothers;

"Haoyu, you won't be able to marry a second wife in a few months? You have to seize this last opportunity." Yang Wendong said while pouring tea: "Look at Liming, he already has two wives."

Zhao Liming smiled and said, "Brother Dong, don't talk about me if you say Haoyu."

Lin Haoyu shook his head and said, "Forget it, I won't bother with that. If I marry a second wife, I'll have to have another child. Although I can afford it, it will take too much energy. I already have three children, which is enough.
If there are more, there will be disharmony in the family. I like my current life very much. "

The two of them followed Yang Wendong in the earliest days of starting a business. Although they could not keep up with the development of the company due to their education and ability, Yang Wendong still gave them suitable positions and very generous salaries.

More importantly were the financial channels and information. In mid-1964, Yang Wendong told them to sell all their real estate stocks. In 67, when the market was at its lowest point, he asked them to buy houses with full leverage and even asked Hang Seng Bank to lend more. This positive and negative combination allowed their assets to increase dozens of times, and they became multi-millionaires.

Although they are not a wealthy family, they are still quite wealthy.

Yang Wendong nodded and smiled, "That's good too. There will be fewer disputes in the future. For issues like succession, emperors over the past thousands of years have not been able to find a perfect solution, so we can only work hard to find a balance."

Among the ancient dynasties, Yang Wendong prefers the "Crown Prince Regent" model of the Ming Dynasty, but a business company is different from a dynasty. The latter can only be inherited by one person, while the former can be divided;
What to do in the future will depend on each child’s strengths, abilities and performance.

Although the oldest child is less than 10 years old, we need to start considering this issue now.

Zhao Liming said: "Brother Dong, you have to think about it carefully. It will be much simpler for the two of us."

“Not necessarily. Your current net worth may not be very high in Hong Kong, but it’s hard to say what it will be like in the future. Maybe you can become a wealthy family in the future.” Yang Wendong said with a smile.

Lin Haoyu shook his head and said, "Brother Dong, we don't have the ability to start a company. We just want to buy some houses."

Yang Wendong said: "As long as you seize the opportunity in the future, it is still possible. In addition, Changxing Industrial and Sun Hung Kai Properties are going public. You can buy some stocks. I am still optimistic about these two companies. I am also a major shareholder."

The ability of the founders of the four major families in Hong Kong in the future is unquestionable. Even if they may not be able to reach the peak of their previous lives because of their existence, they should not be far behind.
Especially Li Jiacheng. Although many people don’t like him, his management ability is unquestionable. He is also the most successful case of Hong Kong’s overseas expansion. His business empire covers multiple industries and dozens of countries. Even if he controls a lot of Hong Kong’s wealth, it will not affect his overseas investment.

"Cheung Kong Holdings? Li Jiacheng has become very famous recently. There was fierce bidding for him at the Hong Kong government auction." Zhao Liming said.

Yang Wendong nodded and said, "Yes, he has the courage and ability. The success of the Plastic Flower King was not due to luck, so you can buy some of his stocks."

Lin Haoyu asked: "When will Cheung Kong Industries go public?"

"Maybe next year." Yang Wendong replied.

Originally, Cheung Kong Industries was scheduled to go public in 1972, but now, due to its own reasons, it may have been brought forward, and even the entire real estate market and stock market have been affected by it; on the one hand, the Cheung Kong Group has driven a large amount of economic activities in Hong Kong, and most of these funds eventually flowed into real estate and the stock market; on the other hand, Yang Wendong himself invested a lot of money to buy stocks of many real estate companies, because buying real estate company stocks is much easier than buying land.

Lin Haoyu nodded and said, "Okay, then I'll take a look."

After lunch, the three brothers separated. Zhao Liming and Lin Haoyu basically did not participate in the various businesses of Changxing Group. This was also a deliberate arrangement. The former brothers were no longer considered superiors and subordinates, so the relationship was naturally easier to handle.
As for charitable foundations, although there are hierarchical relationships, they do not involve profit-making businesses.

After returning to the office, Sister Wang from Finance knocked on the door and came in, saying with a smile, "Mr. Yang."

"Sister Wang." Yang Wendong nodded and said, "Sit down. Are the financial data of the group last year out?"

Every company has to compile statistics on the previous year's turnover, profits, development status, etc. every year. The same is true for Changxing Group. Generally, this matter is handled by Wang Fengzhi, the head of the group's financial department.

Wang Fengzhi replied: "It has come out. Here are the revenue data of several subsidiaries. Mr. Yang, please take a look first."

After that, a document was handed over. Yang Wendong took it and opened it to see the form on the first page. He smiled and said, "Not bad. The turnover of Changxing Industrial, Glory Electronics and Changxing Shipping has exceeded 5 million Hong Kong dollars."

Changxing Industry is the oldest company under Changxing Group. Although the value of a single product is very low, its sales volume is very high, with the quantity measured in millions, tens of millions or even hundreds of millions. With such a base, it can sell at a high price even if it is cheap.

Honor Electronics' history is not as long as that of Changxing Industrial, but its main products are electronic products, especially televisions and some white appliances. One television costs hundreds or even thousands of Hong Kong dollars, and a turnover of hundreds of millions can be as high as 100 million. Over the years, Honor Electronics' products have also sold well in Asia, South America and the Middle East.

Not to mention Changxing Shipping. In the early years, a large amount of money was invested in buying ships. Starting from 67, global shipping opportunities exploded. The ships transported not goods but currency, especially large oil tankers. The cost of loading them once was as high as one million US dollars.

These three companies are also the top three in the report.

Wang Fengzhi explained: "Yes, the turnover of the three companies has exceeded HK$5 million. The most profitable one is Changxing Shipping, with a profit of HK$1.7 million. Shipping is too profitable now. Pao Yugang and Tung Chao Yung are the same;
Changxing Industrial had the highest turnover, close to 8 million yuan, and a profit of 1.25 million yuan, maintaining its previous normal profit margin;

Honor Electronics' profit was 1.06 million, the lowest, mainly due to a large amount of advertising and terminal investment, otherwise its profit could exceed that of Changxing Shipping."

"Well, there's no rush for Honor's profits. We just need to build the channels first." Yang Wendong didn't care about it.

In the field of traditional electronic appliances, it is not easy to gain a certain market share under many old giants. It is enough to make it. The most important thing at present is to increase the popularity and invest in channels in various places, because even if the channel outsourcing model is adopted, it will cost a lot.

However, the era of electronic games is coming, and the profit margin of this industry is absolutely top-notch. Atari in the past had a profit of 10 billion US dollars a year at its peak, which made IBM jealous. Of course, this was in the 80s. It was definitely not that much in the 70s, but it was at least in the tens of millions of dollars.

In other words, if a game is well made, its profit margin is enough to beat many products in traditional industries.
This is also the reason why Internet giants in the past, such as ByteDance, Tencent, Alibaba, Baidu, etc., all wanted to make games. It is so profitable. A company that says it will not harm others by making games simply does not have the ability to do so. The profits of some popular games are even not lower than those of Internet finance.

Wang Fengzhi continued, "Among the groups, Watsons is the next largest. Last year, its turnover was HK$4.68 million and its net profit was HK$1.15 million, surpassing Honor Electronics. Its ham sausage sales are very hot, both in developed countries in Europe and America and in Asian countries."

"The profit margin in the food industry is indeed not low." Yang Wendong also said with a smile.

Wang Fengzhi said: "Yes, once containers become more popular in Hong Kong and neighboring countries, Watsons' business will only get better. Now their transportation costs are still very high because they are afraid that a lot of food will be damaged on the way."

"It's estimated to be soon. Several docks in Hong Kong will be completed next year, and by then all traditional docks will have to close." Yang Wendong nodded and said, "Other Asian countries are also starting to build container docks."

Container terminals are already an inevitable trend. Europe and the United States have basically made the switch, and Asia will naturally follow suit quickly.

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(End of this chapter)