Chapter 404 The Goals of Changxing Trade
Wei Zetao also followed up and said: "Yes, now the multiple businesses under the Changxing Group can help and promote each other. Yang Sheng's early plans were still considered at the beginning. I don’t understand, but now that I think about it, it’s really admirable.”
“Haha, don’t flatter me too much,” Yang Wendong said with a smile. It is also because Hong Kong is relatively small, many things need to be imported, and the market is overseas, so many things have to be done by ourselves.” I will only do my own business and outsource all other businesses. Because there are complete industrial buildings in the country and you can buy everything, it is not cost-effective to do it yourself.
In this era, Hong Kong is completely the other way around. Everything needs to be imported, and all goods basically need to be exported. If you want to grow bigger, you must find ways to establish an industrial chain in Hong Kong and participate in the shipping market. Wait, of course, shipping is special. This is because he knows the history, so Yang Wendong dares to invest in an asset-heavy industry like shipping.
However, when the industrial chain is completely in one's own hands, it will bring huge benefits. Just like BYD in the previous life, it was the first to make electric vehicles, but there was no supporting industry for electric vehicles around 2005, so it could only develop the entire industry by itself. chain, and by 2021, with the technology research and development in place and the cost advantage of the entire industry chain, it will be the best from now on.
Now, in Hong Kong, Yang Wendong can only follow this path , Fortunately, my company's products are currently relatively simple in structure and can be produced in Hong Kong. When complex electronic products are involved in the future, I am afraid that Hong Kong will not be able to accommodate them. At that time, I may have to go to Bay Area or even some places in Europe and the United States. We can only wait to see the details later.
Wei Zetao said again: "Yang Sheng, Changxing Trading is getting bigger and bigger now. Should we consider upgrading it to a first-level subsidiary of the group?"
Yang Wendong asked curiously Said: "What? Isn't it good for you to be in charge of a big company?"
Wei Zetao said: "It's good, but what I used to be good at was factory management. In the early days, Changxing Trading's business was just to cooperate with Changxing I can still manage the industry;
But now there are more and more businesses, and I help many factories in Hong Kong connect with customers. Now I have to do trade with the mainland. This is really not what I am good at? I'm afraid of delaying Yang Sheng's plan. "
"What you said makes sense. The scale of Changxing Trade is indeed getting bigger and bigger now. Yang Wendong nodded and said: "Okay, making Changxing Trading a first-tier subsidiary does meet some of my requirements. Then let the current person in charge of Changxing Trading come to see me tomorrow and I will have a chat with him alone." ”
Eung Hing Group is now one of the largest corporate giants in Hong Kong. It also adopts the well-known decimal management principle in its previous life, that is, one person manages 10 people, and the next 10 people manage 100 people, and so on. ., Under normal circumstances, there will be no cross-over communication. This is also the rule. Even if it is a report, there is a special internal supervision department, which will not involve cross-over.
Of course, 10 in decimal is also. A similar number, in fact it may be a little more. The person in charge of the first-level subsidiary of the group can directly talk to the boss Yang Wendong. There is no need to specially invite him in advance. If there is anything, just come directly. And everyone generally can They all know what they are doing and won’t mess with anything.
“Okay, I’ll ask Zhang Zefei to come here tomorrow. "Wei Zetao said.
"Okay." Yang Wendong nodded.
He also knows about Zhang Zefei, the person in charge of the secondary subsidiary. He also comes into contact with him during company group meetings or visits, but he doesn’t know much about it;
Nowadays, with the development of the group and the take-off of Hong Kong's economy, foreign trade will become one of the cores of the entire economy. In the original history, most of Hong Kong's foreign trade was controlled by British-owned foreign companies. Now that I have traveled through time, No matter what, I have to take a piece of meat from the British capital.
The next day, at the Changxing Building headquarters, Zhang Zefei followed Wei Zetao to the boss's office.
"Xiao Zhang, take it easy." Wei Zetao said with a smile: "Yang Sheng is also very polite to his subordinates. As long as he doesn't make a big mistake, you can be casual."
Zhang Zefei said quickly: "Okay, Wei Sheng, I have met Yang Sheng several times before, and I can indeed feel that Yang Sheng treats us all equally."
Many rich people in Hong Kong, for His subordinates basically come and go as soon as they are called, show off their expressions at every turn, and even ignore them directly in many cases. However, Yang Wendong is indeed different. He is many times better in terms of politeness.
No matter whether it is sincere or not, even if it is just pretending, it will make people feel comfortable after pretending for a lifetime.
Soon, the two arrived in front of the office.
After passing the message through the assistant, Wei and Zhang walked in. Wei Zetao said: "Yang Sheng, this is Zhang Zefei, the current person in charge of Changxing Trading."
"Hello." Yang Wendong said with a smile and shook hands.
"Hello, Yang Sheng." Zhang Zefei returned the same greeting.
"Sit down." Yang Wendong smiled and said.
Afterwards, the assistant immediately served tea, and the three of them chatted casually for a while, and soon entered the formal topic.
Yang Wendong asked first: "Lao Zhang, please give me a general introduction to the current situation of Changxing Trading, which is the core business. Needless to say those small businesses, I will first understand your situation."
For a long time, the boss Yang Wendong has only paid attention to the operating conditions of the first-level subsidiaries. The other second-level subsidiaries are planned to be managed by the first-level subsidiaries. Basically, there will be a basic situation of turnover and income every year. The specific operating details are as follows. I don’t know. Before these companies become large-scale, Yang Wendong won’t care too much, otherwise he will be exhausted.
Although the scale of Changxing Trading is not very large now, its future planning goals are still quite large. Therefore, it needs to be promoted to a first-level subsidiary. Naturally, he, the boss, needs to know the specific situation.
"Okay, Yang Sheng." After Zhang Zefei agreed, he introduced: "Currently Changxing Trading has three main businesses;
The first is to connect with Changxing Industrial and import plastic particles from Wanwan , and then sell it to other major plastic factories in Hong Kong and some countries in Asia.”
“Don’t Formosa Plastics do its own business in Southeast Asia?” Yang Wendong asked curiously. He really didn't know about such a trivial matter.
Zhang Zefei replied: "Some larger countries such as Thailand, Malaysia, and Indonesia are contacted by themselves, but there are also many small countries where communication is cumbersome, transportation is troublesome, and the volume is not very large;
In the area of foreign trade, the Taiwanese side does not have as much experience as Hong Kong, so it is left to us. However, recently I have seen that Formosa Plastics seems to want to take it back. They have also begun to try to directly contact these countries. Communicated.”
“Well, it’s normal. Formosa Plastics has grown in size, so it’s normal to have ideas.” Yang Wendong nodded.
In the early years, Formosa Plastics lacked manpower, material resources and funds. It is estimated that it would be difficult to find a lot of foreign trade staff who can speak English. In that case, it is very cost-effective to cooperate with Changxing Trading, which is good at trade. Although Changxing Trading is also a new company , but Hong Kong has a lot of trading talents in this environment, and you can spend money to build a team that is ten times stronger than Wanwan.
Now that Formosa Plastics has reached a large scale, it is normal to form a trading team of its own.
Wei Zetao also said: "Yes, when a company becomes big, as long as it has the ability, it is impossible to hand over its life to others. Even if we are shareholders, Wang Yongqing cannot completely trust us."
"Just because We are shareholders, and he doesn’t even believe in us.” Yang Wendong smiled and said, “But I am even happier that he can do this, which shows that he is a capable and ambitious person. Only such a person can have the ability to transform himself. The company will become larger or even world-class. "Wei Zetao added: 'If it is like this, when it gets bigger, will it find ways to dilute our shares? '
"It's enough to take advantage of the situation." Yang Wendong said: "As long as we don't decline, there is basically nothing he can do. If he wants to take away our shares, he must have someone. The cost is huge.”
There is a rebuttal to investment, that is, if you invest too much, when the other party becomes too successful, there will be a backlash. This is inevitable, because everyone will do the same thing if they think about it. Things..., this is why many investments in Internet companies in the previous life were made after several rounds, and the proportion of everyone was not high. This is deliberate control by entrepreneurs and investors to avoid future disputes. Generally, they will not ask for a lot unless it is not Simply for investment.
Of course, this is because normal people cannot 100% guarantee that a certain company will succeed, so investors are willing to cast a wide net to catch fish.
There are a few exceptions. For example, Alibaba was invested by Sun Zhengyi and Yahoo to acquire a huge share, accounting for nearly 60%. This aroused the resistance of Ma Yun’s team. Later, taking advantage of Yahoo’s decline, it spent It spent US$7.6 billion to repurchase half of Yahoo's shares. Of course, for Yahoo, this is still a huge return on investment.
As long as the early investment is early, the income of later investors can definitely be guaranteed. And if there are no problems on its own, such as Masayoshi Son, Alibaba will have no chance to return at a high price. The same is true for Formosa Plastics today. In this way, I have already invested a lot of shares, and this will be the most basic profit plan from now on.
Of course, these are just shares. It is difficult to interfere with the control of the company, especially since the other party is backed by the government, so there is no need to think about it.
Wei Zetao said with a smile: "Then it seems that it is necessary for us to try to make plastic raw materials ourselves."
"If you want to be the world's top company, this is a must." Yang Wendong said: "There is no second large plastics manufacturer near Hong Kong. Otherwise, if it competes with Formosa Plastics, we don't need to be so anxious."
In many cases, it is not a problem if some parts are not produced by themselves, but the premise is that several suppliers must restrain each other, otherwise if there is only one, they will be strangled; although Formosa Plastics has a relationship with itself. That’s true, but if you want to be self-reliant, it’s better to take matters into your own hands.
"Yes." Wei Zetao nodded and looked at Zhang Zefei: "Zhang Sheng, go on."
"Okay." Zhang Zefei continued: "This second business , which is to use the channels that Changxing Industrial has developed over the years. , and then help many plastic manufacturers in Hong Kong to sell their own products, the most common ones are plastic daily necessities and toys.”
“I know about this business. What are the specific benefits? Yang Wendong asked.
Several products of Changxing Industrial are considered to be small hits, so after they were launched, they had channels to come to their doorsteps. In a few years, they have channels all over the world.
Many of these channels can also sell goods from ordinary factories in Hong Kong. However, Changxing Industrial itself will not do such a thing. In order to maximize commercial interests, it can also help many small and medium-sized manufacturing companies in Hong Kong. So Changxing Trading did just that.
Zhang Zefei said: "Last year, we completed a total of HK$60 million in export trade for more than 700 companies in Hong Kong; this year it should increase by about 20%."
"60 million? So high?" Yang Wendong asked in surprise.
Zhang Zefei said with a smile: "Yes, these are very basic daily necessities, and competition is fierce overseas, so the profit control is very low. This is because Changxing Shipping can sometimes help by the way to make a profit. of;
Our trading company generally has a profit of 5 percentage points. This ratio is not high. This is also because Hong Kong products are too simple and there is competition from British trading companies. Therefore, the profit of this business last year was almost 3 million. ”
“3 million is not bad. "Yang Wendong nodded and said: "However, if these Hong Kong companies want to make more money, they still have to find ways to transform. Just some simple plastic products will be produced in Southeast Asia soon, and they will not be sold at all. "
In the 1960s, not only Hong Kong was developing, but Southeast Asia was also developing. The production of plastic daily necessities was very simple, and you could produce it yourself with a little development of industry.
Zhang Zefei said: "Yes, recently The plastic flower industry is not doing well, not because of market problems, but because there are too many manufacturers, and plastic products are indeed becoming more and more difficult to sell;
Toys, on the other hand, are selling better and better, not only Only our own copyrighted toys, including many toy guns and children's toys, are becoming more and more popular. ”
"Toys will be a big market." Yang Wendong said: "In the future, you also need to focus on developing this market. The future potential is unlimited."
In the Hong Kong export market in the 1970s and 1980s, toys always ranked among the top Five years later, even if the mainland switches to early-to-mid-term exports in a few decades, toys will also be one of the main export businesses of the mainland.
"Okay, I will focus on expanding this channel, and then encourage Hong Kong factories to produce toys." Zhang Zefei added: "This third business is the trade of grains, which currently mainly involves rice, wheat, For potatoes and the like, it was mainly because of the previous demand from China Resources that we had gotten to know our overseas distributors, so we had a foundation for further cooperation
<. br>It’s just that China Resources is preparing to reduce imports, so we won’t be able to get preferential prices here, which makes us more passive. Because the profit margin of grain trade is actually very low, we must rely on high volume to lower the purchase price and unit transportation cost. ."
Yang Wendong nodded and said: "In other words, we need to go to the market first, and then we can do this business in turn?"
Zhang Zefei said: "Yes, in fact there is a way to play similar to futures, which is to sign early agreements with many farmers in Europe, America and even South America and Australia to lock in future prices. Because you can trade in advance, the price will be lower;
< br>Furthermore, after the grain matures, if the grain price rises or fluctuates little, you can still make money. If it falls, you will lose money. This is basically how many large companies play. Some large consortiums will even lock in a small company. Half of the country's farmland."
"Lock-in risk, that's it." Yang Wendong said: "Can we do this?"
"It's a bit difficult, we don't have many stable customers. " Zhang Zefei said: "Buying these grains has to be transported and stored, which is very risky."
"Let's do it step by step, and then consider this when the scale becomes larger." Yang Wendong agreed.
Although he is a time traveler, he does not know the details of the fluctuations in food prices in the 1960s. He only knows that with the development of the economy, food prices have gradually risen. However, this rate of return is too low, and there must be a lot of fluctuations in the process of rising, so it is better to start with Just take your time and step by step.
When you are familiar with it and have enough experience and team, you can consider other things.
At this time, Wei Zetao said: "Sheng Zhang, the group is currently planning to focus on sugar processing. You can also get involved and find customers for Watson's sugar factory. If there are more customers, you can let They expand in size and thus have larger The right to speak and the ability to control costs."
"Sugar? Okay, sugar is still in great demand in many places." Zhang Zefei said: "I will do my best to open up new markets."< br>
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(End of this chapter)