Chapter 261 Wealth statistics in 1961
“It’s a good business.” Yang Wendong agreed: “Let’s go and do it. The demand for glue and the market potential are also huge.”
< br>The demand for glue in human society is almost eternal, and no one can live without it. In the fields of industry and construction, various types of glue are needed.
Since I have such a factory, a R&D team, and stable customers, I will naturally focus on developing this field. Even my other industries will have demand for glue in the future.
“Okay, many countries in Asia are not yet able to produce glue. This is our opportunity.” Wei Zetao smiled and said: “In the plastic business department, a total of 2.6 million trolley cases were produced last year, but mainly The production capacity is actually produced at the previous Tsim Sha Tsui factory.
This year the Kwun Tong Industrial Park's daily production capacity has exceeded 10,000 units, and by the end of the year it is expected to be able to produce more than 20,000 units per day. Coupled with the Tsim Sha Tsui factory, the annual production plan is about 7 million units. ”
“What about this piracy problem? "Yang Wendong asked again.
Wei Zetao said: "There are not many pirated ones. The production of this kind of trolley case requires large-scale blow molding equipment. After it is produced, the cost of transportation is very high. The terminal sales industry needs It is placed in a not bad location, so it is more difficult.
But now there are many companies that have bypassed our patents and designed different structures, which can achieve almost the same effect. This has led to fierce competition in the market, and it is estimated that the competition will be even more intense in the future. big. ”
“So it becomes a channel issue again. "Yang Wendong asked.
Wei Zetao nodded and said: "Yes, but the demand for trolley cases is very large, and the market is still on the rise, so the problem should not be big in the past two years;
But in terms of price, it may be necessary Proper profit sharing also requires advertising to compete for customers.”
“Well, these are also necessary for normal business.” Yang Wendong nodded and said, “Since several major products need to be advertised, let’s do it together. , to build the Deli brand.”
Not every creative product can obtain exclusive monopoly rights, otherwise the company that invented the trolley case in history would have become a giant company long ago.
The more complex the product, the easier it is for other companies to bypass the patent, so the inventor cannot obtain exclusive benefits. The patent laws of some countries even do not recognize some necessary patents. Forcing patent holders to license publicly at cheap prices, etc.
Patents are a "legal" means set up by rogue countries to protect their own interests, but sometimes they leave a loophole in order to avoid being "rogue".
But no matter what, the first person to eat the crab will always get a big piece of cake.
"Okay." After Wei Zetao agreed, he added: "The spin mop business in Asia is currently produced in Hong Kong and then shipped to other countries by sea.
Last year we produced a total of 3.6 million sets of spin mops, with a total cost of about HK$20 million. "
"Is this piracy problem also serious?" Yang Wendong asked again.
"Yes." Wei Zetao nodded, no need to explain this, everyone understands.
Yang Wendong nodded and said: "Piracy will be an eternal problem, and it will not be solved even in our lifetime. However, development still needs to be developed. We will continue to do our thing and don't care too much about this."< br>
Even Cook, the CEO of Apple, a giant with a market capitalization of trillions of dollars in his previous life, could only smile helplessly when he saw the Apple iPad in Huaqiangbei. There was nothing he could do.
Because it is impossible to stop this industry forcefully, the only way is to develop brand quality and technology. Changxing Industrial itself is a creative product with low technical content, so it can only take the route of brand promotion. .
As long as the brand is promoted a lot, people who buy this product will subconsciously buy this brand, especially in places with a good economy. People often don’t care too much about the small price difference, but pay more attention to the brand. .
In the past few years since I started my business, my production capacity was always insufficient and the external demand was higher. In this case, I would definitely not do too much brand advertising, which would only aggravate the lack of production capacity. Now, the production capacity problem is gradually solved. Then it’s time to enter the next cycle.
“Yes, as long as the brand is established, it will be much better.” Wei Zetao said.
"Well" Yang Wendong said again: "Last year, the total sales of the plastic business exceeded that of the viscose business?"
"Yes, it exceeded a little, but not much, but the profit was still more than But post-it notes." Wei Zetao replied: "It's produced in Kwun Tong this year. The production capacity of the industrial park has increased dramatically. I think the plastic business will become the core business of our Changxing Industrial this year.”
“Don’t look down on sticky notes. We haven’t promoted this thing in a big way, but it still has great potential. "Yang Wendong said with a smile.
In a previous life, post-it notes were one of 3M's five major industries, with an annual turnover of more than US$1 billion.
But that was in the 1980s, which was 20 years behind now, so it cannot be calculated equivalently, and now you still need to rely on various channel vendors for your promotion, which is far inferior to the industrial giant 3M.
But no matter what, the sales cannot stop at less than 100 million Hong Kong dollars a year. The current sales are actually more like the market gained after not investing much in publicity. It is estimated that many people still don’t know This thing.
Wei Zetao said with a smile: "Yang Sheng is right. Post-it notes do still have a lot of room for improvement, but the plastic industry involves many products, and we will definitely not be disappointed."
"Well, the bigger the better." Yang Wendong nodded.
According to this data, the combined turnover of the two core businesses last year was almost HK$200 million.
As for the profit aspect, the financial statistics have not been completely clear, but the approximate figures are available. The net profit is about HK$55 million.
This profit alone may be second only to established foreign companies such as Jardine Matheson, Swire, and Wheelock in Hong Kong;
Of course, the scale of the industry is still far behind.
Wei Zetao paused and then said: "Changxing Industrial also has some small businesses, which are inventions within our company and then open up the market. The total turnover is about 1.5 million Hong Kong dollars."
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He was a little embarrassed at this time. The core products of Changxing Industrial were provided by the boss, and the new products developed by many of their internal technical staff were less than one percent of the company's size.
This is because Changxing Industrial itself has a lot of channel resources, strong production capacity, etc. If it were an independent company, even if these new products could make money, they would not be very large.
Yang Wendong smiled and said: "It's okay, as long as we can make progress, just continue research and development."
The research and development of many large companies and even scientists is inherently random, and there may be multiple Research can only succeed one, and even unintentional discoveries may succeed.
For a team that has no direction, it is already a great improvement to be able to find its own direction and then make products.
"Thank you Yang Sheng." Wei Zetao said: "Everyone, this is the main business of Changxing Industrial."
In fact, there are also some small businesses, such as the joint venture interests between Changxing Industrial and its joint ventures, etc. Wait, but these are not much, so there is no need to say more here.
“The progress of Changxing Industrial last year was still great.” Yang Wendong continued: “So I hope that we can continue our efforts this year. I not only want Changxing Industrial to become the largest factory in Hong Kong; I also want it to become the largest factory in Asia. , at least one of them."
After a few years, he became the top rich man in Hong Kong. Basically, there will be no problem. When the real estate market dips in 1966, then there will be no problem. They are the four major Chinese families that can easily surpass the future in the real estate industry.
It is not difficult to become a shipping king. Even if he is not as good as Bao Yugang, he should be at the same level. It should not be difficult to become one of the top ten shipping kings in the world.
The field of industry is full of challenges, and it is also the most fulfilling career. Especially now that the Chinese have a poor socio-economic situation, there is an urgent need for factories that can create a large number of jobs and help hundreds of thousands of people. The Chinese people are getting rid of the most basic poverty problem.
If he can do this, his life achievements will be even higher.
When rich people get older, many of them will do it for fame, maybe because of this.
After hearing this, Wei Zetao said: "Don't worry, Yang Sheng, we will definitely go all out."
"Okay." Yang Wendong nodded, then looked at Zheng Zhijie and asked: "Old Zheng, Changxing Real Estate is the second largest business of our group. Can you summarize last year's results?"
" Yes, Yang Sheng." Zheng Zhijie also said: "Changxing Real Estate now has two main businesses, one is the land of residential communities.
Last year, Changxing Real Estate developed a total of 6 residential communities with a total sales area of more than 3.4 million square feet. Because they are all on Hong Kong Island, the price per square foot is HK$30. About.”
“That’s close to 100 million sales?” Yang Wendong said with a smile.
Zheng Zhijie said: "Yes, but this is the turnover of the terminal. In fact, it is also recycled. The funds from the previous project will also be used in the next project.
Moreover, the funds we used ourselves were less than 20% of that, and most of them were funds from off-the-plan properties and banks. "
"Well, I know. "Yang Wendong nodded.
The real estate industry is very special. Because it has a mortgage, banks are relatively easy to lend money, at least much better than shipping.
And for off-the-plan properties Specially, it uses leverage To the extreme
It is said that many real estate players who are relatively gambling only use 100,000 yuan, and then use some means, such as "building up" a good relationship with the bank, and then obtain a million-dollar loan, and then obtain it through off-plan properties. Higher funding.
If it goes well, three to four million dollars of capital will be mobilized, and the final profit will be several hundred thousand, but the capital is only one hundred thousand, and the profit can be said to be seven to eight times, maybe even ten times.
Changxing Real Estate Industry naturally uses the same routine, but because the funds are large enough and the base is high, it is impossible to achieve such an extreme level. It is generally controlled at around 15%, but this is only for single projects and multiple projects. The capital utilization rate will be much higher.
In other words, the apparent start-up capital for several projects totaled 15 million, but in fact a large part of it was double-counted. The actual investment may only be 3 to 5 million, and the profit can probably be doubled. Three times, almost 10 million Hong Kong dollars.
It seems that the ratio compared to the turnover is not high, but compared to the principal, it is an absolute huge profit.
Then he added: "Next year's real estate business will continue to develop high-end communities. In addition, we can try to choose some commercial office buildings for development. It is also the same as selling off-the-plan properties to cash out funds."
The communities of Changxing Real Estate are all well-decorated and the location is not bad, so they are very popular among many middle-class citizens. This is why the company has developed rapidly.
However, the high-end market is always limited, especially in the economic environment of the early 1960s.
So real estate development also needs to find a larger market. Ordinary residential buildings are also possible, but the competition is fierce, and commercial office buildings are much better.
Because many real estate developers in this era also like to own their own properties, there are not many single-story or even half-story office buildings for sale, but there are many retail investors who want to buy them. This is also a good market.
“Don’t we increase our self-control?” Zheng Zhijie asked.
Yang Wendong said: "Yes, you can do commercial real estate business as usual, and then tell me that if I find the right one, I will choose to hold on to it."
The time has arrived in 1962, although housing prices have not yet reached their peak. , but at this time, it does not make much sense to own non-core high-quality properties. It is better to take advantage of the final madness of the real estate market to double the funds in hand, and then wait for 66 years to make another wave of profits.
Although 1966 was the beginning of the real estate crisis, in fact, at the beginning of 1965, the entire real estate market began to slump, which meant that there were still three years to go.
"Okay." Zheng Zhijie didn't ask any more questions. He also knew that his boss had very high opinions on the real estate market.
Then he said: "Changxing Real Estate Company, a subsidiary of Changxing Real Estate, was established at the beginning of last year. Currently, we have 9 buildings on Hong Kong Island. In addition to Changxing Building, Hong Kong China Building and Geely Building, we use them ourselves. , the others are rented out
As for commercial assets, there are currently 17 cinemas and Changxing Plaza.
There are also various types of land and properties in Kwun Tong, totaling almost 2.3 million square feet, but the value of these properties is not high, even if the housing prices in Kwun Tong have risen rapidly due to the emergence of Cheung Hing Industrial Park, The average price of our properties is only about 10 yuan per square foot. "
"This is not as good as the Diwang land that was auctioned last year. "Yang Wendong said with a smile.
In the previous life, when Hong Kong's economy developed, although the housing prices in Kowloon Peninsula were still not as good as those in Hong Kong Island, the gap would not be as big as it is now.
You know, Ten years ago, unless it was for business needs, people with some money would not live on Hong Kong Island. It is conceivable that land prices in Kowloon are very low.
That is to say, because of the influx of people in the past ten years, Hong Kong Island really can't let go, so Hong Kong's big capital and the Hong Kong government began to promote the economy of the Kowloon Peninsula.
"Yes." Zheng Zhijie said again: "In terms of price, it is still far behind. However, when we purchased the land in Kwun Tong, the average price was only 6 to 7 yuan. In addition, we only After using 30% of the funds, even if it counts as interest expenses, the profit has now doubled.”
Several other people are also roughly calculating profits in their minds. This meeting does not talk about profits, but a lot of information can. Calculate it roughly.
"Well, just continue to hold these properties." Yang Wendong nodded. He will not keep these lands. When the housing prices reach their peak in two years, they will be sold on a large scale, so that they can be sold in 66- In 1967, I bought back an area several times the size.
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(End of this chapter)