Chapter 605: Summary of Wealth in 1970

Chapter 605: Summary of Wealth in 1970

Chapter 605: Summary of Wealth in 1970 (2)

Wang Fengzhi nodded and said, "Yes, it will probably take only two to three years. All the countries in Asia with a little economy will have container terminals. Even if they don't, we can re-export from Singapore in the future. This will also reduce some costs. This is not just for Watsons, but also for other products."

"Yeah," Yang Wendong nodded, then looked at the document in his hand and said, "Carrefour's turnover last year was 4.1 million Hong Kong dollars, and its net profit was 6800 million. These figures are not bad. It seems that its development in Southeast Asia is also going well."

The Hong Kong market is very limited. In this era, a turnover of 2-3 million is basically the upper limit. After all, both the population size and the average economic strength are far inferior to those in the previous life.

The biggest difficulty for Carrefour is that as a supermarket, it does not have its own base, whereas Walmart has the United States, Auchan and Metro have Europe, and even the European countries are much larger than the Hong Kong market.

If we want to continue to develop, we can only move towards Southeast Asia, or wait until the mainland in the future, but that time is too far away.

Wang Fengzhi said: "Yes, the turnover of Carrefour's stores in Singapore has exceeded 1 million. Other stores are built in Malaysia, Thailand and the Philippines. These are also in cooperation with local wealthy families. We operate them and give them a certain profit share."

"This model seems pretty good at the moment. Let Liu Huayu continue to expand and open stores in this way, attract local wealthy businessmen, and then cooperate together." Yang Wendong agreed.

If you invest in a factory in a territory that is not your own, create local jobs and then export products, any country with a little bit of common sense will support it, and there is generally no problem with sole proprietorship.

But if you want to do business that makes money from other local people, such as opening a large supermarket, shopping mall, etc., then you need to attract local capital appropriately, so that both parties can provide money and you can provide personnel, capabilities, channels, etc.

This is exactly the case with Carrefour. Otherwise, even if the local government would not make things difficult for the sake of Changxing Group, it would be unlikely to expand rapidly. In any case, it is enough to keep the core procurement and sales channels in its own hands.

Of course, it depends on the size of the industry. Large industries require this operation, but small or remote industries do not. For example, building a clothing store or a cinema generally does not require such trouble.

"Mr. Liu has been doing this all the time." Wang Fengzhi smiled and said, "The next one is Changxing Real Estate. Last year, its turnover was 3.5 million and its net profit was 1.01 million, which is the total turnover from the sale and rental of properties.

However, the core assets of Changxing Real Estate are not these figures, but the large amount of land, property buildings, shopping malls, etc. throughout Hong Kong and Kowloon. In fact, the total appreciation of these assets was as high as 3-4 million last year. It’s just that according to our financial rules, if the property is not sold, it will not be reflected in the financial statements. "

"I know this. The most important data of Changxing Real Estate is actually the property area and location." Yang Wendong said: "I remember that in 67 and 68, Changxing Real Estate's profit data was still negative."

Small real estate companies do not seek properties in order to quickly recover funds, so turnover is very important, which is related to the circular investment in other projects;
However, large real estate companies like Changxing Real Estate cannot play this way in a small market like Hong Kong. They can only learn from Hong Kong Land and hoard large properties on a large scale.
If these properties are not sold and appreciate in value, they will not be included in the financial data. Otherwise, the increase would be too terrifying. Also, because Changxing Real Estate plans to hold most of its high-quality properties for the next few decades, there is no point in including them in the calculation.

Unless, it is a listed company, in order to increase its stock price, the increase will be taken into account. Chen Songqing, a well-known fraudster in the previous life, played it this way. Relying on various operations, he pushed a listed company with basically no business into a large listed consortium with a value of nearly 83 billion Hong Kong dollars. If it were not for the outbreak of the real estate crisis in , it might even have successfully gone ashore in the future.

Wang Fengzhi added: "Mr. Yang, the rent has also increased a lot in the past year, even as high as 30% in many places, so even if Changxing Real Estate remains the same next year, its turnover and profits will increase significantly."

"Yeah, that's what I think." Yang Wendong agreed.

Because of his existence, he also doesn't know when the real estate crisis that broke out in April 73 will come, but it should not come two years earlier. This is determined by the highest and lowest prices that the Hong Kong economy can bear.

However, no matter when the land price drops, it will have little impact on Changxing Real Estate, because the core properties cannot be sold under any circumstances, and other properties that are specially operated and sold can be temporarily delayed as long as the housing prices reach the upper limit that Hong Kong citizens can afford.

Wang Fengzhi added: "The next is Changxing Film Company and Cinema Chain. These two companies are independently operated, but they are considered one company at the group level. Last year, their total turnover was HK$1.75 million and their net profit was HK$6300 million."

"This profit margin is shockingly high." Yang Wendong's face also showed some surprise.

Wang Fengzhi said: "It is mainly due to the popularity of Mr. Li Xiaolong. Each of his films has brought the company tens of millions of Hong Kong dollars in revenue, and that is net profit. As for other Hong Kong films, we have so many theaters and even theaters in Japan. Combined, we have such good results."

"It's good, but this number is not good enough compared to Hollywood." Yang Wendong shook his head and said, "A Hollywood movie with better performance can reach this number."

"That's also making money globally, just like our Changxing Industry. We can't compare." Wang Fengzhi said with a smile: "But Mr. Li has already gone to Hollywood, so he may be able to shoot a joint venture movie this year."

As the chief financial officer of Changxing Group, she naturally knew a lot about the company's internal affairs. After all, even a first-tier subsidiary with a turnover of hundreds of millions needed to have its finances approved by the headquarters, and each company's professional manager only had a limited amount of authority.

Yang Wendong nodded and smiled, "I hope so. Xiaolong is still negotiating the film. When the content is almost ready, we still need to decide on the business cooperation and distribution."

Yang Wendong is not clear about movies, especially now that Li Xiaolong's history has changed. What kind of movies will he make? Yang Wendong paid attention to it at the beginning, but later let him do it himself.

The same is true for cooperation with the United States. When it comes to movies, it is naturally Li Xiaolong or his team who will negotiate with the other party, and the subsequent commercial cooperation content is their own business.

Wang Fengzhi said: "If Mr. Li becomes famous in Hollywood, then in the future, Changxing Film Company can go to Hollywood to shoot movies?"

Yang Wendong shook his head and said, "It's unlikely. Changxing Film Company should just shoot Hong Kong movies. For the time being, cooperation with the United States will probably focus on the US side."

In the cooperation with 20th Century Fox, he fought for what he should fight for, but there was naturally no need to fight for things that he was not good at. Only by leveraging the strengths of each side can the greatest advantage of the cooperation be brought into play.

And the most important thing is to make the first movie a success. Once Li Xiaolong becomes popular in the white circle in the United States, he will have more confidence whether he will work with 20th Century Fox or other Hollywood giants.

"That depends on Mr. Yang's arrangement." Wang Fengzhi continued, "The next one is Changxing Culture. Changxing Culture's main industries are comics, animation licensing and various peripherals. Last year's total turnover was 1.59 million Hong Kong dollars and its net profit was 7600 million."

Yang Wendong also saw the numbers below and said with a faint smile: "This profit is higher than that of Changxing Film Company, and the profit margin is also higher."

Wang Fengzhi explained: “Yes, it’s mainly because Changxing Culture’s revenue, except for the comics business and peripheral toys or stickers, is all from licensing;
This includes licensing cartoons to TV stations in various countries and licensing various comic characters to different companies. These are basically revenues that are profits. After being evenly distributed, the profit margin is very high, close to 50%."

"Hmm." Yang Wendong naturally knew what was going on. He then turned to the back of the document, looked at it for a while and said, "The authorization of Peppa Pig has just begun in the United States, Australia, Canada, the United Kingdom, and France. There is still a huge market in the future."

Wang Fengzhi also said: "Yes, Peppa Pig has also begun to become famous in Europe and the United States. It is estimated that the growth rate of this animation license may be several times higher this year. Moreover, once more regions are broadcast and more people know about it, the licensing of cartoon characters and toys, stickers and peripherals will also increase significantly.

In addition, the Dragon Ball series has also performed very well in Japan, Asia, and even some countries in the Americas. We can also make animations in the future and copy the business model of Peppa Pig. However, in terms of plot, Dragon Ball is not infinitely long. "

"Don't be too greedy. It's impossible for all topics to be infinitely long." Yang Wendong smiled and said, "Some short comics with interesting stories are more suitable for publicity and promotion."

Animations like "Black Cat Sheriff", "Peppa Pig" or "Detective Conan" in the past are theoretically infinite in length. Even when a generation dies out, the protagonists still stay young and forever young. This can be said to be a very suitable cash cow for capital.

However, this type of subject matter is both too long to succeed and too long to fail. A plot that is too long makes the content rather empty and has no connection between the beginning and the end. Even if anyone stops watching occasionally, it will not affect subsequent viewing. This results in a poor follow-up effect, and in the non-Internet age, many people are prone to seeing repetitive plots.

Wang Fengzhi smiled and continued, "There is also Changxing Culture Company, which mainly owns TVB and newspapers. Last year's revenue was 8800 million Hong Kong dollars and its net profit was about 2300 million."

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(End of this chapter)