Chapter 740: Hutchison in Danger

"More than 500?" After hearing this number, Wu Qinglan pondered for a moment and said, "Mr. Yang, with our current resources, it will be very difficult to build 5 stores in the next five years.
This is not just a problem for us, we also need to consider transportation factors and factory import factors. It is not something that can be built just by having money, unless we acquire other stores and directly take over their resources. "

The requirements for opening a car retail store are higher than those for a general supermarket;
Although there are many kinds of goods in the supermarket, most of them are small items. Even if containers are not convenient for transportation, small trucks can do, and even a few things can be transported by tricycles. However, transportation by car requires very high transportation infrastructure. Many places in Southeast Asia do not have such conditions.

"Well, that makes sense. If we acquire it, can I achieve my goal?" Yang Wendong asked again.

Wu Qinglan replied: "In theory, yes. There are many other retail car stores in every city in Southeast Asia. However, if we make large-scale acquisitions, our peers will definitely know about it, and then they will most likely raise the price on the spot and ask for exorbitant prices."

Fang Xianming next to him also said: "Yes, this kind of thing is also difficult to hide. They are all in the same industry, so they should be connected."

Yang Wendong thought for a moment and said, "Well, some of these retail stores should be chain stores, right? Then we should start with the largest chain stores and offer them a suitable price. If they are willing to sell, we will take over.

As for the possibility that some people might raise the price after the news gets out, we should seek a balance. As long as it is appropriate, it can be moderately more expensive. We are the ones who have acquired the product, so a little more price is acceptable.”

In any industry, whether it is in the stock market or other fields, if you want to acquire, you will inevitably pay a little more cost. Conversely, if you want to sell, the same logic applies;

Wu Qinglan agreed: "Okay, Mr. Yang, I understand what you mean."

"Okay, let's do this for now. I need to quickly take control of auto retail in Asia. Please help me figure out how to do it." Yang Wendong said again.

Only by controlling the terminal sales of automobiles first, can he ensure that he can maintain the automobile brand after acquiring it in the UK or other countries in the future. Regardless of how big it will be in the future, it must at least be able to operate. This is the first step to success. Otherwise, he will not be able to operate it. People in the mainland are not fools. I am afraid they will not consider cooperating with a bankrupt enterprise.
Even if I earn more capital from the financial or electronics industry in the future, I can also invest in the automotive retail industry outside of Asia, such as the United States, Europe, the Middle East, etc., and even in mainland China in the future.

As long as there is enough capital, we might be able to become the world's number one car retailer. In this way, we might even have some say in the automotive industry.

This is the first step in my future entry into the automotive industry, and it is also a very important step. Only after taking the first step well will I be qualified to take the second step.

Yang Wendong looked at Fang Xianming again and said, "Old Fang, although this is the expansion of the real industry, it will inevitably require financial support. You can also help here. One is to mobilize some funds to Changxing Automobile Retail Company. The second is to use the financial resources of Southeast Asian banks and try to expand through financing.

I need more than just a sales outlet. I also need to own the properties and land of these stores. Otherwise, if people stop renting the houses in the future, it will cause us a lot of trouble.”

Yang Wendong is not very clear about the future real estate market in Southeast Asia, but he knows the general trend. Before the Asian financial crisis in 97, the market was basically rising.

Because of the uncertainty, he would not invest in many properties in Southeast Asia, except for a few cities he is familiar with, such as Singapore and Bangkok. After all, generally speaking, they are definitely not as good as Hong Kong, the Mainland or Japan, which he is sure of.
However, if you have related businesses locally, you still need to own the properties involved. On the one hand, you will definitely be able to make profits from real estate, and on the other hand, your own industry also requires long-term and stable operations, so self-controlled properties are naturally convenient.

Fang Xianming agreed: "Okay, Mr. Yang, I will definitely do my best to help Ms. Wu."

"Okay, that's it. Once you have determined the target information for acquisition, just submit it to the headquarters for review. It's no big deal. I will agree to everything." Yang Wendong nodded and said.

When it comes to large investments, Yang Wendong usually sets the direction, and then his subordinates execute it. However, there will also be a contingency plan before execution. This contingency plan needs to be reviewed by the headquarters to evaluate the feasibility, economic efficiency, risk factors, etc. from the perspectives of finance and legal affairs.
After the professional evaluation is completed, it will be reviewed by the boss Yang Wendong, who generally checks whether it is in line with his strategic plan and whether the amount is significantly different from expectations.

The advantage of this is that everyone can do their own thing, and it also allows Yang Wendong to be freed from some tedious affairs;

However, in order to avoid internal corruption, some of these plan data will be handed over to a third party for inspection after the project is completed. These third parties are also several professional third parties appointed by Yang Wendong. This uncertainty can also ensure that within the company, at least in some big things, no one dares to interfere.

As long as they can ensure that there are no major issues, then the boss Yang Wendong feels that it is enough. For some small businesses, there are also internal inspection departments responsible for investigation. Even in theory, the external Independent Commission Against Corruption can also investigate these matters.
All in all, we can basically eliminate most corruption incidents, which is enough. Absolute integrity is like absolutely pure water, which is impossible to exist, and there is no need to pursue it.

The automotive industry is the ultimate pursuit of many super tycoons;

In the past, when the mainland was in the era of electric vehicles, new opportunities to enter the automotive industry came and many business tycoons rushed to participate. One reason was that the market was large enough, much larger than mobile phones, home appliances or other industries, and the second was that this was a goal that many people set for themselves.

Even in the era of fuel vehicles, after Samsung achieved certain results in various industries in the 90s, Lee Kun-hee was ambitious to manufacture cars, but eventually the plan went bankrupt due to lack of operational knowledge and the Asian financial crisis;
In terms of technical difficulty alone, the technology of fuel vehicles exceeds that of electric vehicles (technically difficult does not mean good). After World War II, almost no new major players emerged, except Hyundai Kia, which was supported by South Korea and the United States.

Not to mention that he is in Hong Kong, even in Europe and the United States, it is almost impossible to create a new car brand. The only chance is to acquire existing companies, but the companies that can be sold are basically those that are about to go bankrupt and have poor technology. If there is no new market after the reform and opening up of the mainland, even he, a time traveler with wealth comparable to that of a country, would not want to participate in the automobile industry; but since there is an opportunity, he must seize it. Not to mention becoming a global second-tier automobile giant, it would be enough to become a global second-tier company and achieve some results in the domestic market.

However, it is only 74 years now, and there are still more than four years before the reform and opening up. It will take at least five or six years for Thatcher to come to power and reorganize state-owned enterprises. For now, we can only wait, which gives us enough time to develop the automobile retail industry.

Of course, the automobile industry is not limited to the UK, but other countries are also currently in a period of good automobile development. Even in the United States, it would be more difficult for a Hong Konger to acquire brands in these countries, and it would be difficult to get approval from the government. Unless the car brand of another country is about to go bankrupt, it may be sold to outsiders, and a lot of conditions will be put forward;

The situation in the UK is actually similar, but after all, I am a member of the Commonwealth, and I invested in Thatcher very early. In this regard, it is more or less more feasible than acquiring car brands from other countries. I also understand the British auto industry and have my own opportunities.

After everything is ready, all you need to do is wait for the right time;
Soon it was the beginning of 1975. The Hang Seng Index in Hong Kong had broken through 250 points, the real estate industry had also risen, the economy of Hong Kong as a whole began to show new vitality, and many people's hearts were filled with new hope.
However, this does not include Hutchison Whampoa Limited, which is known as one of the four major foreign companies in Hong Kong;
At the headquarters of Hutchison House in Central, Hong Kong, Qi Dezun sat at the front of a conference room with a frown on his face. Next to him sat a blonde beauty, and around the conference table sat a dozen British foreigners.
The scene was very quiet. Qi Dezun did not say anything, and everyone else sat upright, some even daring not to raise their heads.

"This is our result in the past year? How do you want us to explain to our shareholders and creditor banks?" Qi Dezun spoke slowly after a long while.

At this moment, the conference room became even quieter, and even the slightest sound of wind outside the soundproof glass was carried in.

After a while, an older foreigner said, "Chairman, what was the situation of the entire Hong Kong market last year? As you know, Hutchison Whampoa is also highly dependent on the Hong Kong market, so the data is not very good."

Qi Dezun asked, "Richard Xin, there are so many companies that rely on the Hong Kong market, including many listed companies, but why are our data so bad?"

Richard replied: "Chairman, in fact, judging from the business operation alone, Hutchison Whampoa's performance last year was not bad, and it can even be said to be very good. Even though the market fell, the proportion of this market share that Hutchison Whampoa controls has only increased and not decreased;
The reason why the financial data is so bad is that the group is too heavily in debt from top to bottom, from the head office to the branches. All the profits are not enough to pay the interest, and there is no room for investment and expansion. If it continues like this, this year's performance will definitely fall, and by then, it will be too late. "

The problem caused by heavy debt is that it affects the capital chain. Once there is insufficient funds, many projects of the entire company cannot be started. It can be coped with in the short term, but it will be a devastating disaster over time.

"." Qi Dezun couldn't say anything more after hearing this;

All in all, Hutchison's biggest problem is debt. If it had no debt or had a lighter debt, all the problems would have been solved long ago.
Then he said, "Now that Hong Kong's real estate prices have rebounded, the value of our properties will also increase a lot. Can we discuss with some banks to increase the loan?"

Richard Xin quickly shook his head and said, “Chairman, I have also asked many banks, and they all refused. In the early years, we obtained a lot of loans by mortgaging high stock prices. Later, when the stock prices fell, because it was an economic crisis, the banks did not excessively seek to increase debt collateral;

But now that the economic crisis is over, the bank's work process has gradually returned to normal. Although the real estate market has recovered, it is still far from the amount we borrowed during the high stock price period. Some banks are now asking us to increase collateral, but I have been able to cope with it for the time being, but I don't think it will last long."

Banks will not help you when you are in trouble. The less you lack money, the more they want to lend to you. Conversely, if you lack money, they will be unwilling to lend to you.

Qi Dezun suddenly felt a headache, pressed his temples with his right hand, and asked, "How long will the funds in our hands last?"

"You only have 6000 million left of the funds you borrowed from Swiss Bank last time. Under normal circumstances, you can only use it for one month because we cannot stop paying salaries." Richard Xin continued, "As for many suppliers and service providers, I have tried my best to communicate with them, hoping that they can delay it, but they are unwilling to do so. Many of them have threatened that if we do not pay, all subsequent services will be terminated, and they will sue us in court."

"Why are they so strong?" Qi Dezun asked, "Are they really going to sue us? Does that mean they don't want to do business with us anymore?"

Although it is legal, if a general supplier does this, the customer will definitely reconsider cooperation with this company;

Richard Xin said, "Chairman, we have been in arrears for almost a year. Many suppliers have already advanced more than one million Hong Kong dollars, and they can't afford it themselves. If they take us to court, it means they are ready to stop doing business with us completely."

"One year." Qi Dezun also knew that this time was too long and he was in the wrong;
Richard Xin added: "So the problem now is still a funding issue. If there is no cash flow injection, then in a month or even half a month, the entire Hutchison will be in a crisis of suspension of all businesses;

If wages cannot be paid, and employees start to strike or delay their work, the consequences will be irreversible and disastrous. "

"Funds?" Qi Dezun had a headache. He knew that this was the problem, but who would be willing to lend money to Hutchison at this time?

PS: Please give me a monthly ticket
(End of this chapter)

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