Return to 1958 and build a century-old giant

Chapter 322: The Vertical Expansion of Changxing Industry

Zheng Zhijie also understood what he meant, and then said: "Okay, if house prices really fall, then we must sell a lot of properties to cash in."

"Yes." Yang Wendong nodded: "Otherwise the bank will also put a lot of pressure on us. Besides, we have more funds, and when the housing prices fall, it will not be a problem to buy back several times more properties."

When you know that a real estate crisis is about to occur, it is necessary to reduce assets.

Because all their properties are mortgaged, once house and land prices plummet and the value of the mortgaged property falls, the bank will inevitably require an increase in mortgage, which will put a lot of pressure on many real estate companies.

Among the Chinese real estate giants in the 65s and 66s, very few were famous before , because most of the famous real estate companies before that did not survive the crisis in .

He was also planning to sell most of his non-core properties in 64 to raise funds, so that when the crisis came, he could easily protect his properties in the core areas of Hong Kong Island, or he could take advantage of the seriousness of the crisis to acquire properties in Central.

Zheng Zhijie smiled and said, "Okay, I understand."

"Well, OK." Yang Wendong added, "For now, we should give priority to completing the building on Queen's Road."

Zheng Zhijie asked: "What is the name of this building?"

Yang Wendong thought for a moment and said, "We will probably have quite a few buildings in the future, so I'm thinking of coming up with a simple naming rule."

"What kind of rules?" Zheng Zhijie asked curiously.

Yang Wendong said: "All buildings start with the word [Hua], followed by a Chinese character. For example, I want to call the first building Huajin Building, with the word Jin next to the character Jin."

"It starts with the Chinese character Hua, Huajin Building?" Zheng Zhijie said, "This is a good way to name it."

Yang Wendong smiled and said, "Then it's settled. Huajin Building also needs to be built as quickly as possible and must be completed before the middle of next year."

"I understand." Zheng Zhijie agreed.

Yang Wendong is in a very good mood as he will have his own building in Hong Kong's most prosperous commercial district, especially since it will be a new building.

One of the most stable returns in the world is Hong Kong's real estate. From the 50s to the 21s of the previous life, there were several small-scale declines in the middle, but the rest have been rising.

Even without considering the appreciation of house prices, the rent alone, even after deducting inflation, can be considered a very generous return.

Central is the pearl of Hong Kong's real estate industry and is a high-return asset that ranks high around the world.

That afternoon, when Yang Wendong returned home, he found that a guest had come.

"Why are you here?" Yang Wendong looked at his sister-in-law and asked with a smile.

Bai Yujie replied while eating an orange: "Come and see my sister. She hasn't been feeling well lately. I'm here to keep her company."

"Okay, thank you very much." Yang Wendong added: "But the due date is coming soon, and she is also preparing to go to the hospital."

Bai Yushan is pregnant with twins. She is now 9 months pregnant and her belly is already very big. This makes her feel very uncomfortable on weekdays. Even though there is always a doctor, she has to endure it most of the time.

Bai Yujie said, "I know. I'll go to the hospital with you. There's a place to stay there anyway."

"Okay." Yang Wendong nodded and asked, "I remember you stayed in school as a teacher? Are you not working now?"

The hospital has also made preparations long ago. The most luxurious VIP room is just the basics. When relatives come, there will be a place to stay.

Bai Yujie smiled and said, "I don't have to work for the time being, because the Hong Kong government is planning to build another university, and I will be assigned there. I am currently idle."

"Another university?" Yang Wendong's mind moved. This should be the Chinese University of Hong Kong.

Although his time travel has caused quite a bit of a butterfly effect in Hong Kong's business and even political circles, his impact on the education sector should not be significant.

The Chinese University of Hong Kong was originally established in 1963, which is this year, but in fact, the school was planned as early as 1957, and it took 6 years to officially pass the British approval.

The reason is that in the early days, Britain had legal restrictions on each colony, which allowed only one university. This was probably because it considered that there were too many highly educated local talents in the colonies, which would definitely affect its rule.

Therefore, in the 40s, after World War II, many colleges were established in Hong Kong to accommodate talents who could not enter the University of Hong Kong due to quota and relationship restrictions. The three most famous ones are: New Asia College, Chung Chi College, and United College.

It was these three institutions that proposed to merge and establish the Chinese University of Hong Kong in 1957. The British side initially disagreed, and after several years of negotiations among the various parties, permission was finally granted.

Bai Yujie nodded and said, "Yes, the name of the new university is Chinese University. I will teach physical education there in the future."

"Oh, that's good. It's very prestigious for a university professor to say that." Yang Wendong praised.

There are some professions that, even if they don't earn much money and have no power, have certain social status, such as top doctors, teachers, etc. Even if super rich people meet such people, they will generally pay more attention to them.

Bai Yujie said, "I teach physical education, but I don't have the title of professor."

"Maybe there will be a chance in the future." Yang Wendong smiled.

At this time, Bai Yushan was also supported by Su Yiyi and walked over. In front of her was Xiao Zhiwen, who was running and calling, "Daddy."

"Oh~" Yang Wendong picked up his son.

After little Zhiwen snuggled with his daddy for a while, he saw Bai Yujie, then looked back at Bai Yushan with a hint of confusion in his eyes.

Bai Yushan came over and said to Xiao Zhiwen with a smile, "Come, let your aunt hug you."

Little Zhiwen naturally opened his arms and was carried over.

Then Bai Yujie also said: "I am your aunt, let me hug you."

Xiao Zhiwen immediately looked back and forth, and for a moment he was a little confused.

"Haha~~Don't tease him." Su Yiyi also said with a smile.

"It won't be fun anymore if you don't tease me." Yang Wendong said with a smile.

Children are cuter the younger they are. Children under 3 years old are fine as long as they are not too naughty.

The next day, Yang Wendong came to the Changxing Industrial Park in Kwun Tong, and after taking a tour of the factory, he came to a workshop specializing in the production of plastic bags.

"What is our current production capacity of plastic bags?" Yang Wendong asked.

Wei Zetao replied: "Our monthly production capacity has exceeded 1 million, but it is mainly small ones, especially those used to pack small items in vegetable markets and ordinary stores. The demand is particularly high." "Normal, small plastic bags are more practical." Yang Wendong smiled and said: "Nowadays, those who sell buns in vegetable markets do not use oil paper, but plastic bags. There are more similar places in other places."

Before the advent of plastic bags, foods such as buns, steamed buns, and fried dough sticks were all wrapped in oil paper. If customers felt that the paper was not clean, they had to bring their own clean cloth.

With plastic bags, things become much more convenient and they are cheaper.

As for other small commodities, it is even more convenient. In the past, you had to carry them in your hands or bring your own basket, but now a bag can solve the problem.

Although littering of plastic bags may cause pollution problems, paper bags also cause pollution, but the pollution does not appear at the terminal, but at the production end.

"Yes." Wei Zetao also said: "It's the same overseas. The bags we export are mainly small bags."

Yang Wendong asked again: "What is our factory price?"

Wei Zetao picked up a bag and said, “This thin bag has a factory price of five for one cent. It is our cheapest bag. Thicker and larger ones range from 3 cents to one cent.

The most expensive bags are the ones used for Carrefour supermarkets. They are very strong and are usually exported and used by high-end merchants.”

Yang Wendong calculated and asked, "So the turnover for this month is over one million?"

"Yes, almost 130 million last month." Wei Zetao said, "But the profit is only 11, and this is when there are not enough competitors."

"It doesn't matter. We keep the price low now. Even if there are no competitors, we can suppress others from entering the market." Yang Wendong nodded and then asked, "Polyethylene, the raw material for plastic bags, is also produced by other manufacturers, right?"

The plastic bag industry is not a highly profitable industry. By its very nature, it must be cheap in order to become popular. Then, it can rely on huge quantities to lower costs, thereby stabilizing a huge market share.

This was also the plan that Yang Wendong had formulated early on.

Wei Zetao replied: "Yes, our plastic bags also went to Japan, and they also had chemical factories there that started to produce this material. As a result, plastic bags also appeared in Japan.

It is estimated that other countries will also have it in a while. The production cost of polyethylene may be very high, but to simply make bags, you only need to have the equipment, and the current market demand is still very high."

"Well, let's continue to expand the scale of production and gain the market first." Yang Wendong added: "Only when the scale is large can we gain a firm foothold."

"I understand." Wei Zetao said, "I have also asked Dongsheng's people to start producing plastic bag making equipment. As long as they succeed, not only will our costs be reduced, but it will also greatly speed up our purchase of equipment."

"Okay." Yang Wendong nodded and asked, "How's the investigation going on with the plastic woven bags?"

Wei Zetao replied: "I sent someone to investigate. Germany already has similar technology that can melt the plastic halfway and then draw it into very thin long sheets.
In Europe, this technology has also been used to develop the packaging industry, but it is mainly used to replace wood in packaging boxes, and has not yet been developed into bags. "

"Brushed?" Yang Wendong didn't quite understand.

Wei Zetao explained: "This is an industrial production technology. For example, aluminum profiles commonly used in industry are drawn by heating the metal to a softened state but not liquid, and then extruding it through a die."

"Oh, OK." Yang Wendong said, "Then send someone to Germany to investigate the production capacity and price of this equipment. Let's calculate the cost first."

Many times, the technology may already exist, but the cost is too high.

Wei Zetao replied: "I have sent people there and have contacted several German companies that can produce such equipment. There will be specific data in a while."

"Okay." Yang Wendong then asked, "What about papermaking in Taiwan?"

Wei Zetao said: "I have sent people to Taiwan to check it out. There are supply chains for various paper production. As long as we invest, there will be no big problem."

"Not bad." Yang Wendong smiled and said, "In the past few years, the production capacity of sticky notes and trolley cases has gradually stabilized, so our next task is to open up new product markets.

Plastic and paper were once the main raw materials for our products, but now we are also involved in them. We will use this to expand the production of other products and ensure the diversified development of the entire enterprise."

The development strategy of large enterprises is generally to make products first, then expand in the supply chain, gradually control or produce some raw materials.

After that, there are two paths: one is to continue to expand to the front end, or to use its own scale effect to reduce the cost of the raw materials and then enter other industries.

The raw materials for plastics are from the petroleum industry chain, and the raw materials for paper are from waste paper recycling or wood forests. Yang Wendong is not involved in these for the time being, so he can only strive to create economies of scale through plastics and paper.

Wei Zetao nodded and said, "This is a good idea. The markets for paper and plastic are infinitely large. The demand in Hong Kong alone is extremely high. If we can also open up the Hong Kong market for paper, the demand will be even greater than that for plastic."

"Yes." Yang Wendong smiled. "From basic office paper to a lot of packaging and toilet paper, the market is huge."

In the past, there were many papermaking companies on the Fortune Global 500 list, and even Hong Kong gave birth to a papermaking giant in the 80s.

We can have enough demand for sticky notes, so after entering the papermaking industry, we will inevitably expand into other fields.

Wei Zetao replied: "Then I will build the paper mill in Taiwan as quickly as possible."

"Okay, and we also need to train enough talents like we did in the early days to facilitate future expansion." Yang Wendong added: "The cost of ocean transportation of paper is not low. In Southeast Asia, papermaking giants don't have ships, but we do.

So when the scale is bigger in the future, Changxing Shipping will also be able to join in, from importing waste paper and wood pulp to subsequent exports. "

This is the benefit of the entire industrial chain. Once it is really successful, except for terminal sales and the most basic raw materials in the early stage, the entire middle part is controlled by your own industry, which is enough to reduce costs to a minimum.

In this case, you either have to choose between gaining more market share or gaining more profits.

As it happens, once Hong Kong no longer has water shortage, its own ships will receive orders of their own.

"I understand." Wei Zetao said with a smile.

Now, he also knows how comprehensive his boss's layout is, and many industries are gradually under his control.

"If we have other industries in the future, we can do the same." Yang Wendong added: "But there is another problem with Changxing Industry, you should know."

Wei Zetao paused and replied, "I know that Changxing Industry is currently using ideas from a few years ago, all from you, Mr. Yang. In the past two years, there have been no new hit products, except for plastic bags."

"Yes, you can't just rely on me," Yang Wendong said, "so we still have to increase investment in research and development in the future."

"Okay." Wei Zetao also felt a little ashamed. It is true that enterprises basically rely on the boss.

Yang Wendong said: "But this kind of investment also requires a large number of talents. Do you know that the Hong Kong government is planning to establish a new university recently?"

PS: Ask for monthly ticket

(End of this chapter)