Chapter 792: Investing in Terry Gou

Chapter 792: Investing in Terry Gou

Chapter 792: Investing in Terry Gou

The zoo plan doesn't seem to have any problems. It is just a small investment project. If Yang Wendong didn't want to preserve the bloodline of the South China tiger, he might not be willing to participate in such a small project. The returns are likely to be less than that of an office building in Central. But when you are in Hong Kong, you can't just speculate in real estate.

Time soon came to July, and Yang Wendong's work and life returned to normal. At present, there were many things to do in the company, but nothing was very urgent;

On the Honor Electronics side, "Space Invaders" has officially landed in North America, once again setting off a craze for arcade games. This popularity has continued for several years, and naturally attracted the attention of many large IT companies;

HP, IBM, Texas Instruments, and several Japanese electronics companies also set up game business departments and launched several arcade machines at lightning speed. However, this industry looks simple, but it is actually very difficult to do well. Many of their arcade machines failed.
In the past, Atari also launched two games and achieved certain results.
Yang Wendong was very calm about this. In this kind of industry, there can be no monopoly. He just needs to make his own games well. In fact, because customers can play multiple games at the same time and the whole industry has just started, at this time, the enemy and we are not even competitors, but we are exploring the market together.

In Hong Kong, Tank Wars is also under development. The prototype has been completed, but the various settings have not been perfected. Yang Wendong also occasionally tracks the progress.
On the other hand, a home game console is also under development. The difficulty is equivalent to that of a computer. It is not difficult to make it, but it is very difficult to achieve high performance and low price. Honor has also specially recruited a number of people from the United States and Japan, and is working hard on research and development every day.

The gaming market is also a cash cow market that Honor Electronics is fully confident of in the future. With this cash cow, other industries can expand calmly, so Yang Wendong also attaches great importance to it;
However, he only needed to set the direction, and the research and development was naturally handed over to his team, so he was not very busy;

One day in July, there was a violent storm outside and a typhoon was approaching Hong Kong, leaving the entire block empty. However, this kind of business did not have a big impact on Harbour City. Many people drove or took taxis directly into Harbour City and stayed there for the whole day. It was not a problem for them to even stay in the hotel upstairs at night.

Yang Wendong also came to Harbour City and sat in a cafe on the third-floor balcony, looking at the Victoria Harbour not far away and the Central Building opposite, feeling quite emotional;
Having come to Hong Kong for almost 20 years, he has built a huge industrial, financial and real estate conglomerate in Hong Kong, and also has many industries in Europe, America and Asia. Next, as the reform and opening up is about to begin, he can also invest funds in the country to accelerate domestic economic development. At the same time, he can also seek larger industries in the mainland market.

"Mr. Yang."

A familiar voice interrupted Yang Wendong's thoughts. Yang Wendong looked back and said with a smile, "Aying, what's the matter?"

Ah Ying said, "There's news from Taiwan that they've found the Guo Taiming you were looking for."

"Oh, do you have the information?" Yang Wendong asked back.

"Yes, it's all here." Ah Ying quickly handed over a document;
The news has been reported to the boss, so he is naturally prepared.

After Yang Wendong took the information, he read it carefully. After a while, he smiled and said, "I didn't expect that Guo Taiming actually wanted to do business with our Honor Electronics."

Ah Ying said: "Yes, Honor Electronics is the largest black-and-white TV manufacturer in Southeast Asia, and Terry Gou's business is to provide rotary buttons and other plastic parts for TVs, so naturally he hopes to get a ride on our company."

Yang Wendong nodded and said, "Well, okay, let Fang Xianming come here and tell him that I'm treating him to coffee."

"Yes, Mr. Yang." Aying replied.

Fang Xianming, who was in Hong Kong Island, drove over immediately after receiving a call from his boss' assistant. Fortunately, it was not a super typhoon. It was just raining in Hong Kong and the wind was not strong, so there was no safety issue.

An hour later, Fang Xianming appeared in front of Yang Wendong.

Yang Wendong waved his hand and said, "I've prepared a cappuccino for you. The coffee here tastes pretty good."

"Thank you, Mr. Yang." Fang Xianming said with a smile, and took a few sips: "It's really good."

Yang Wendong nodded, and then asked: "How is the recent acquisition of Disney shares in the United States?"

Fang Xianming said: "Everything is going according to plan. We are acquiring very slowly. We estimate that we will be able to acquire 4.99% around the end of this year."

"Okay, then keep this pace, no need to rush." ​​Yang Wendong nodded and said, "Disney's acquisition is not urgent, don't let others find out for the time being. When it reaches 4.99%, we will pause for a while, and we will talk about the rest later."

"Okay, Mr. Yang." Fang Xianming agreed.

Yang Wendong then handed over the information in his hand and said, "This is the information of a small company in Taiwan. Take a look first."

After Fang Xianming took the information, he read it carefully and said, "This is just a small company. Judging from the size of its assets, it is only a little over a million Hong Kong dollars. Does Mr. Yang want to acquire this company?"

Yang Wendong shook his head and said, "No, I once heard from a friend in Taiwan that this founder has some ability, and my friend also knows Terry Gou, so he wanted me to invest. I thought it wasn't much money, so I gave my friend this face."

With his wealth, it was a bit abnormal for him to target a small business like this, so he just made up the excuse of "friend".

Fang Xianming also understood and said, "I understand, Mr. Yang, how much do you want to invest?"

“About 30%. The amount can be based on normal valuation. There is no need to take any advantage. In addition, after the successful acquisition, Honor Electronics can take care of it a little.” Yang Wendong continued.

In the future, Honor Electronics will inevitably make game consoles, computers, game playback devices, and even mobile phones and other equipment. This will be the most profitable industry in the next few decades besides automobiles.
But if they make terminals, they will no longer be able to do OEM. Other competitors are not fools. The reason why Hon Hai Electronics was successful in the past was that it promised not to make terminal products.
Moreover, for Honor Electronics, whether it can control the huge foundry industry is also a problem. This industry looks simple, but the profit margin is extremely low and the competition is fierce. Being able to fight in the bloody sea is indeed the ability of Guo Taiming himself. Therefore, the future of Honor Electronics may also need to rely on companies like Foxconn in terms of production;
Therefore, investing in Foxconn now is the most appropriate choice, helping it to grow rapidly and seize the market. The more business they take on, the stronger their cost and quality control will be.

Fang Xianming said: "Okay, I'll go to Taiwan now."

Although the scale of this investment is small, under normal circumstances, he would not care much about such things, but the boss's direct order still needs special treatment.
"No rush, let's wait until the typhoon is over." Yang Wendong said with a smile.

It is indeed a bit unreasonable for him to personally handle such a small investment. In the future, there will be many more such investments, especially after the reform and opening up of the mainland, and he can just arrange for his subordinates to operate it.

"Yes, Mr. Yang." Fang Xianming agreed.

A few days later, when the typhoon had receded, Fang Xianming personally came to Taipei, Taiwan;
When he arrived at the gate of a factory and saw the old sign of "Hon Hai Plastic Enterprise Co., Ltd." on the left, he couldn't help but feel curious. Who was his boss's friend who introduced him to such a small business, and why did Yang Wendong still think highly of it? If it were a small factory like this, he would not care at all, but since the boss asked for it, even if it was a garbage collector, he had to go in and communicate seriously.

"Mr. Fang, this is Hon Hai Plastics. This company has also applied to supply Honor Electronics." said Lin Zhilong, an accompanying Honor Electronics executive.

Fang Xianming asked back: "Then you didn't agree?"

Lin Zhilong said awkwardly: "Yes, we didn't agree. Our people didn't even come to review it because the scale provided by Foxconn could not meet Honor's basic requirements."

A small business that was ignored actually became a target favored by a big boss. If they had known this, they would have signed the contract.

But Honor Electronics also has its own internal processes. If you want to be a first-tier supplier of Honor Electronics, you must have scale. This is the most basic. After all, if a company cannot develop, then there must be some problems.
As for some potential stars like Wang Yongqing, the probability of meeting them is actually very low. Honor Electronics does not care about investment, but only supply, and will not care about these.

"Well, you can think about it now." Fang Xianming said with a smile;

He also knew some of Honor Electronics' processes. After all, it was one of the largest electronics companies in Hong Kong and even in Asia. It was impossible for just anyone to be its supplier.
But once Foxconn accepts my investment, it will not lack funds and orders and will be able to develop quickly.

At this time, people from Foxconn also came out from inside the factory. The leader, a man in his 30s, smiled and shook hands and said, "Welcome to Honor Electronics and Changxing Group. Please come in."

"Mr. Guo, right?" Fang Xianming also shook hands.

Guo Taiming said: "Yes, I am Guo Taiming."

After the three of them introduced themselves, they entered the factory together;
This is a small plastic factory. If Wei Zetao came, he would find that this factory is very similar to Changxing Industry in its early days;

There are several small injection molding machines in the factory, which are producing knobs for black-and-white televisions, radio casings, etc. The environment is very hot, noisy, and there is a slight strange smell.

Guo Taiming also knew that this was not a place to stay for long, so he said, "Ladies and gentlemen, now that we have finished touring the factory, how about we go to the office next door and have a cup of tea?"

"Okay." Fang Xianming agreed. There was indeed nothing good to see in this factory.

Several people came to an office next door. Guo Taiming had already prepared tea. The three of them first chatted casually about the latest news in Hong Kong and Taiwan, and then got down to business after a while.

Terry Gou said: "You two, although Foxconn has only been established for three years, we have already supplied products to more than a dozen electronics companies. Now, we are also making full preparations to supply Honor Electronics and RCA.

RCA has already reviewed us and will soon pass our review, which will make Foxconn one of the largest plastic manufacturers in Taiwan.'

"Mr. Guo's career is indeed very promising." Fang Xianming didn't care if he was bragging or not, and continued, "But if you want to enter the supply chain of Honor Electronics, you still have to make major improvements."

Guo Taiming said: "Of course, I am also going to move to a new factory and replace the equipment, so that I can be worthy of the status of Honor supplier by then, and also."

"Haha, that's good." Fang Xianming had already guessed that this person was bragging, but in this society, people who do business like this have to be able to brag;
If you are good at bragging, you can find customers, investors and even establish government relations, which is also the most important part of business.

The three of them boasted for a while, and Fang Xianming finally understood why the boss's friend was optimistic about this man. He was so eloquent that he believed everything he said. If this happened at a banquet, he might have been drunk.

So he quickly got to the point: "Mr. Guo, there is a situation within our group, that is, we will invest in some potential suppliers, and then provide sufficient funds and order support, so that we can achieve true mutual benefit."

Guo Taiming listened to the introduction and immediately understood: "Mr. Fang, Honor Electronics wants to invest in Hon Hai?"

"Yes, what do you think?" Fang Xianming asked.

Guo Taiming felt a little strange. His company was not big enough to attract Honor's attention. He immediately replied, "How many shares do you need?"

Fang Xianming said: "Usually 30%."

Changxing Group usually does not want a lot of shares in the companies it invests in. About 20% is enough. The 30% is also for bargaining purposes.
Guo Taiming asked again: "What about the valuation amount?"

"Of course, this requires a third-party review after both of us agree, and it also requires negotiation." Fang Xianming smiled and said, "Don't worry about this. We won't deliberately lower the price."

Guo Taiming said: "That's not the case. I just hope that if I get investment, I can get more funds to invest."

"If it's a matter of money, then even if the investment funds are insufficient, we can still provide additional loans." Fang Xianming added: "Hong Kong's Hang Seng Bank can give you a sufficient loan amount."

Hang Seng Bank cannot cooperate directly with Changxing Group, but it can cooperate with Changxing Group's suppliers. Over the years, many of Changxing Group's various suppliers have also brought hundreds of millions of turnover to Hang Seng Bank.

Guo Taiming's eyes lit up and he said happily, "That's great. I very much welcome the investment from Changxing Group."

To join hands with such a large consortium is like hugging a big tree. In the future, as long as there are no problems with the quality, there will basically be no shortage of orders and funds. This is a great thing.

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