Chapter 719: China Resources' Request

Chapter 719: China Resources' Request

Chapter 719: China Resources' Request

In the electronics industry, miniaturization is the most difficult. For example, when computers first came out, they weighed dozens of tons and took up several rooms. It took decades to barely reach a size that could be used by civilians. Then, after several more decades, they gradually developed into mobile phones. In essence, they are gradually getting smaller and increasing the amount of computing, etc.
The research on miniaturization of tape players may not be as complicated as that of computers, but it is certainly not easy. Yang Wendong could not participate in the specific process. All he could do was to determine the direction and provide sufficient financial support.

After entering the 70s and 80s, the core of electronic technology is technology. In this regard, Yang Wendong's "prophet" golden finger is of little use, but being able to accurately choose the direction is already a great help, especially when multiple technologies are running in parallel. Countless large companies are hesitating about which direction to choose, or investing heavily in research in multiple directions, but they don't need that, which can save a lot of money, resources and time.

This will also be Honor Electronics' special advantage when competing with other top giants in the future.

Time quickly came to February, and two major events happened in Hong Kong;
The first is that the mainland government has officially proposed to import a batch of large-scale chemical fertilizers, chemical fibers, and continuous steel plate rolling mills from abroad in the next three to five years, totaling US$43 billion;
Although this incident had nothing to do with Hong Kong, it also marked closer economic exchanges between the mainland and the West. Because of this incident, international capital flowing in from overseas began to gradually increase, and many international industrial and financial giants began to open offices in Hong Kong.
Although an office does not require a large area and many may only have a few people, these companies are all internationally renowned companies and will choose prime locations such as Central when they come to Hong Kong. If there are enough of them, it will be good news for Hong Kong's real estate market and may even have some impact on the stock market.

However, this good news has limited impact on the overall economic development of Hong Kong. It can only be said that it made a slight turn when the Hang Seng Index fell. Against the backdrop of the global oil crisis and the Hong Kong economic crisis, this benefit is still not enough.

The second thing is that the most famous "Independent Commission Against Corruption" in the previous life was established this month.

Although its initial purpose was to suppress the Chinese community that controlled the police and various political resources, in the long run it was still of great help to Hong Kong. And to a certain extent, some Chinese detectives are indeed not good people, and the same is true for the British ghosts.

After the establishment of the ICAC, small business trade in Hong Kong has become much more convenient, and life for small shops and stalls on the street will also be much better. This will promote the peaceful development of the entire economy and prepare Hong Kong for the future to become the Pearl of the Orient in Asia and a tourist destination.

Yang Wendong's presence will basically have no impact on these major events. He is also happy to see all this happen as it did in history. With his wealth in Hong Kong today, the better the Hong Kong economy develops, the greater his benefits will naturally be.
Even if he will invest in the mainland, the United States or Southeast Asian countries in the future, Hong Kong will still be his foundation. Apart from other things, the income from the rental of a large number of real estate properties alone will be able to surpass many of the world's top 500 companies in the next year, and there is almost no risk. The real estate itself will also be a very high-quality mortgage item;

When I compete with international companies in other fields in the future, Hong Kong's huge and stable income will be a guarantee of stability. Just like in the early years, the Jardine Matheson Group invested everywhere overseas and suffered losses everywhere, but it was able to persist for decades relying on the rental income of Hong Kong Land.
February 2, Lantern Festival:
Yang Wendong brought his children to Kangle Building. The children played in different places in the office, which was also fun for the children.

After a while, a guest came over and Yang Wendong met him in another reception room next door.

"Hello, Mr. Zhang." Yang Wendong said with a smile and shook hands.

The visitor was Zhang Guangdou, the head of China Resources Group's Hong Kong branch. During this period, with the acceleration of economic cooperation between the mainland and the West, he has gradually become active in Hong Kong's business community.

Zhang Guangdou smiled and said, "Mr. Yang, hello. I came here this time to thank your company for its help. It has allowed us to add another set of chemical fiber equipment production line in Yuezhou City at a very low cost. The Ministry of Textile Industry is also very happy."

"I'm just helping out a little. In fact, when the mainland buys some non-high-tech equipment in the future, you can also consider second-hand equipment." Yang Wendong said with a smile.

If you have money, everyone wants to use new equipment, but the problem is that you don’t have money, so you need to focus on the cost-effectiveness.

In recent years, the mainland has purchased heavy industrial equipment from abroad on a large scale, at a great cost. Billions of dollars in foreign exchange are also a huge amount of money for the mainland. It is said that even the gold reserves have been used.
If it involves high-tech equipment such as steelmaking and chemical industry, then new equipment should be purchased, while for other equipment such as the production of civilian products, second-hand equipment can be considered. The mainland's demand for the quality of final products cannot be compared with that of Western countries. Although it may not be good to say this, it is also a reality. Take chemical fiber as an example. First, ensure that enough people have clothes to wear, especially cold-proof clothes.

Zhang Guangdou nodded and said, "Yes, I think so too. However, China Resources cannot intervene in such large-scale purchases. At most, I can be a middleman. It is useless to worry about this. But I think the higher-ups will consider it carefully when they see that the capital investment is only 3% of the new equipment." "That's good." Yang Wendong smiled and asked, "Mr. Zhang, is there anything else?"

Zhang Guangdou nodded and said, "There is one thing. I wonder if Mr. Yang has paid attention to the changes in the poultry meat market in Hong Kong recently?"

"Mr. Zhang, are you talking about the recent massive influx of Southeast Asian meat and poultry into the Hong Kong market?" Yang Wendong asked in return.

With the status of the Yang family, they naturally did not need to know the situation in the wet market. However, as the largest supermarket chain in Hong Kong, Carrefour also included a large number of fruits, vegetables, meat and poultry, etc., and was also one of the major purchasers, so there would be relevant information in the annual and monthly reports.

Vegetables are mainly imported from the mainland. Although Southeast Asia wants to grab the market, vegetables are transported for a long time at sea. Even if there are some preservation methods, most of them will not look good when they arrive in Hong Kong.

But meat is another matter. After the popularization of containers, the transportation of frozen meat has become very simple, whether on the sea, in the port or on the road of truck transportation. Therefore, since the establishment of container terminals in Hong Kong and some cities in Southeast Asia, the transportation volume in this area has increased significantly, which naturally took away the production that once belonged to China Resources.

Zhang Guangdou nodded and said, "Yes, the meat and poultry in Southeast Asia have a great impact on China Resources. Yang Sheng also knows that Hong Kong's daily necessities are one of the main sources of foreign exchange for our country. If something like this happens, it will have a relatively large impact on the country.

Mr. Yang, your Carrefour is the largest supermarket in Hong Kong, so I hope you can increase your purchases from the mainland."

"Mr. Zhang, the essence of economic issues is price and quality. The prices in Southeast Asia are lower than yours now. There is nothing I can do about it." Yang Wendong shook his head and said, "You can't ask me to buy your meat at a high price, right? Even if I really do that, other vegetable markets will continue to buy meat from Southeast Asia, which will be useless in the end."

Although he would often cooperate appropriately with the mainland for mutual benefit and win-win results, forcing them to purchase high-priced goods was a bit foolish and did not pay attention to the market economy. After all, Carrefour had a monopoly on supermarkets but not on vegetable markets.

Zhang Guangdou said, "Mr. Yang, we can't really compete with Southeast Asia in terms of cost, but what we deliver are live poultry, live pigs, or live cattle, while those in Southeast Asia have been frozen for more than a month. The quality is completely different. It's reasonable that the price is a little higher, right?"

Yang Wendong nodded and said, "What Zhang Sheng said is indeed very correct, but the problem lies here. Most Hong Kong people do not actually need expensive live poultry. Frozen meat is certainly not very good, but it is more in line with market demand because it is cheap enough, the taste is not much different, and there is no hygiene problem.
Although everyone knows that live poultry is definitely better, even in Europe and the United States, they mainly eat frozen meat, so there is definitely a demand for live poultry, but it is not much. "

In fact, it is the same everywhere in the world. In the past, most people in the mainland bought frozen meat and chicken. Only in this way can the price be reduced to the lowest and ordinary people can afford it.
Besides, small live poultry can be sold in rural vegetable markets, but it is definitely not allowed in supermarkets in urban areas. The same goes for pork, beef, and mutton, which is the same everywhere.

"We have spent a lot of money to study how to effectively ensure the mortality rate of live poultry during transportation. If we switch to frozen transportation now, all our efforts will fail." Zhang Guangdou sighed, "And the frozen transportation route requires a large investment and the replacement of trains. Even if we do this, the cost of rail transportation is still lower than that of sea transportation."

As early as ten years ago, the mainland opened three express trains to provide enough food for Hong Kong, and specially built railway tracks. It was originally profitable from the perspective of profit, but in the early days, a large number of animals died on the road, resulting in heavy losses. Later, it took several years to slowly optimize various methods to ensure safety on the road;
Unexpectedly, after only a few years of smooth operation, the popularity of containers and container terminals had a serious impact on the three express trains.

Yang Wendong smiled faintly and said, "That's because the materials from the mainland all come from Hankou and Shanghu. But if they come from Bao'an County next to Hong Kong, the cost will definitely be much lower."

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(End of this chapter)