In Hong Kong, we build a global business empire

Chapter 130: The Crazy Expansion of Aimico
With huge sums of money in hand, Lin Haoran is full of confidence.

Judging from the international gold prices in recent days, it is obvious that the increase in gold prices has begun to accelerate. The later you enter the market, the higher the gold floor price will be.

So, what he had to do was to go to the United States as soon as possible and settle the gold futures matter first.

The time for departure to the United States has also been set. The flight will take off from Hong Kong's Kai Tak International Airport at 6:3 am on June 9, with the destination being New York, USA.

In addition to the two bodyguards, Su Zhixue also went with him.

Su Zhixue is familiar with all investment operations, so it will be much more convenient to have him along.

On the morning of June 6nd, Lin Haoran first dealt with the matters of Wan'an Group and Qingzhou Yingni Company. In the afternoon, he went to Aimego Company, a company he rarely visited.

Since taking that big order last year, Aimego's fan orders have been very average, after all, it is now winter and spring.

Despite this, there is still a profit of HK$4 to 5 million every month.

Because many of the distributors in the United States not only sell in the U.S. market, they also expand the market to Central and South America.

These places are close to the equator, so it is not cold even in autumn and winter, and there is still a demand for fans.

In the United States and Canada, there is a certain market demand even in winter and spring. Some new or renovated buildings will install ceiling fans in advance, even though the temperature is not high enough to require fans.

But starting from the end of April, Aigo's orders surged again.

Although Lin Haoran is still unclear about how much money the company made last month, he knows that Aimego was so busy that it had to continue expanding its factory area and increasing the number of grassroots employees.

After leaving Ching Chau Cement Company, Lin Haoran headed straight to Kwun Tong.

Half an hour later, he appeared at the factory of Aigo Company.

It is worth mentioning that at the beginning of last month, due to the surge in orders, Liu Luanxiong decided to rent the entire industrial building.

For this purpose, he specially called Lin Haoran. Lin Haoran naturally agreed to this small matter without hesitation.

After all, with the arrival of summer, the order volume will surge dramatically. In the past two years, the fan industry may be the most profitable this summer and next summer.

Originally, there was a tenant on the fourth floor, but due to poor management, he hastily left the business at the end of December last year. It is said that he could not even get his deposit back because he breached the contract.

This is how business works, it is impossible for everyone to make money, there will always be someone who loses.

Moreover, the number of people who lose money is always greater than those who earn money.

People tend to only see the glamorous successful people and ignore the failures.

Therefore, it just so happens that Aimego Company can directly rent the entire building.

Moreover, the industrial park also offers great discounts in terms of price.

After more than half a year, the occupancy rate of the entire industrial park has only increased from about 20% to about 30%. It can be said that the occupancy rate of this industrial park is not high.

Aimego Company directly rented the entire building, so the owner of the industrial park naturally gave it a big discount. There is now a lot of competition for renting industrial buildings in Hong Kong.

The last time Lin Haoran came to Aigo was in mid-May, and more than ten days have passed since then.

He found that the company obviously had a lot more employees.

On the first and second floors, there were busy figures everywhere.

We went up to the third floor, passed through a warehouse area and the employee rest area, and arrived at Aigo's new office area.

At the beginning, AIMEGO’s office was on the second floor and the area was not very large.

However, as Aigo began to expand into middle and senior management, the office area continued to expand.

Departments such as quality control, marketing, R&D, accounting, procurement and human resources were established at the beginning of the year. The company's various departments have become more detailed, everyone has their own responsibilities, and the company's execution is faster and better.

Therefore, when we rented the first and third floors later, we directly used part of the third floor as a new office area.

When I walked into the senior management office, I saw several department directors busy at work, including the financial director Li Meihui.

"Hello, Mr. Lin."

One greeting after another reached Lin Haoran's ears.

Lin Haoran responded one by one with a smile on his face.

"Director Li, where is General Manager Liu?" Lin Haoran noticed that Liu Luanxiong was not in the general manager's office.

"Boss Liu went to Kwai Chung this morning. We have a batch of goods to be shipped to the United States today. He was worried and followed us all the way. According to the previous schedule, he should be back soon." Li Meihui replied. Lin Haoran nodded and said, "Show me the financial statements for last month."

After saying that, he walked directly into the reception room and sat on the sofa.

Not long after, Li Meihui gave Lin Haoran the financial statements of Aimigo last month.

Looking at the data on the financial statements, even though Lin Haoran had guessed that it would be very good, he couldn't help but be surprised when he saw the data.

Last month, total orders amounted to $1109 million, with profits of $343.89 million.

In other words, the profit last month was as high as HK$1822 million.

This is a month's time.

Moreover, in order to reduce risks, for every order Aimego accepts, dealers will first pay a certain deposit, and the rest will be paid upon delivery.

In other words, there is no outstanding debt!
But thinking about the news that Lin Haoran learned in his previous life, Aimego started as a small workshop, and in just less than three years, it accumulated more than 100 million Hong Kong dollars in profits for Liu Luanxiong.

Liu Luanxiong only owns half of it, which is 100 million Hong Kong dollars. Moreover, for a long time, Aimego was a small workshop with a small scale and did not make much money.

So, in reality, there are only two years when you can really make a lot of money, and we have to deduct the time in winter when the order volume drops sharply. In the summer when the orders are the most, it is normal to make 10 or 20 million a month, and it is definitely not the peak.

Compared with orders from other markets, orders from customers in America are indeed much more prompt.

The oil crisis has been going on for a long time. The rising oil prices have turned the energy-saving and simplicity slogan originally promoted by the government into a policy of the people taking the initiative to save energy and simplify things.

After May, the temperature in the United States began to rise gradually, and fans became a necessity for many people.

If we can get such high orders in May, I think the orders in June will be even more outrageous.

After sitting in the reception room for about half an hour, Lin Haoran saw Liu Luanxiong who had hurried back.

Seeing Lin Haoran, Liu Luanxiong was a little surprised and said: "Haoran, how come you have time to come here today?"

"I'm planning to go to the United States, so I came here to take a look before I go there," Lin Haoran explained.

Liu Luanxiong nodded, sat on the sofa opposite Lin Haoran, and said, "Today, a batch of orders are going to Los Angeles, USA. They have been shipped. I went out for this matter. The dealers in the United States and Canada are urging me to place orders urgently. I have repeatedly increased my productivity, but I can't meet their requirements. It's too difficult."

Although Liu Luanxiong was complaining at this moment, the expression on his face showed that he was enjoying it.

"Thank you for your hard work!" Lin Haoran said with a smile.

"It's not hard. Since I followed your advice and established a more complete management team for the company, salary expenses have increased, but our execution and productivity have not improved faster or better. The most important thing is that I have also reduced a lot of burdens. Now I don't have to do everything myself, which makes me feel much more relaxed." Liu Luanxiong explained.

"How are the orders this month? I saw that last month's performance was good." Lin Haoran shook the monthly report in his hand and asked with a smile.

“My orders for this month have been booked until the end of the month. Even though we have rented six floors and our productivity has been greatly improved, we are still unable to meet some orders. We have established a marketing department, but we didn’t expect that the European market would start to take off last month.

European orders accounted for 20% of our total orders in May. This month, the orders from there have increased to 30%. I am currently considering further expanding our production capacity and planning to rent the industrial building next door. If we accept all the orders, our profits this month are expected to double compared to last month!" Liu Luanxiong was full of excitement when he said this.

In just over half a year, the development speed of Aigo Company is really crazy.

Last year, Aimego was just a small workshop with less than a hundred employees.

But only a few months later, Aigo's monthly profit had reached tens of millions of Hong Kong dollars, and it had nearly 5,000 employees, which was considered an upper-middle level in the entire Hong Kong manufacturing industry.

If they rent the industrial building next door and continue to double their expansion, the number of employees will exceed 10,000. There are only a handful of manufacturing companies in Hong Kong with more than 10,000 employees.

"Rent it. There is no need to think too much about it. Our orders have increased significantly, which has a lot to do with the oil crisis. The oil crisis will eventually stabilize, and the fan market will eventually be saturated.

While the market is not saturated, we should grab as much market share as we can, don’t be polite, otherwise these markets will be taken away by others. "Lin Haoran said with a smile.

Hong Kong's manufacturing industry is mainly based on piecework and time-based wages.

The wages of Aimego's grassroots employees are calculated on a piece-rate basis. Aimego has an almost insurmountable volume of orders, so the employees' wages are naturally very good.

But if winter comes, the employees' wages will decrease due to the decrease in orders, and some dissatisfied employees will voluntarily resign, so increasing the number of grassroots employees will not bring too much pressure to the company.

"You're right. Okay, I'll go find the boss of the industrial park today and discuss with him about renting the building next door. This way, our available area will be doubled. By the middle of the month at the latest, our productivity will be doubled, and we can take on a large number of orders." Liu Luanxiong said affirmatively.

"Axiong, as the order volume increases, we must also pay attention to quality. Our products are sold well in America, largely because of our good quality. Once a major quality accident occurs, it will have a huge impact on us." Lin Haoran reminded.

"Don't worry, the Quality Department has always been one of the most important departments in our Aimego. We have strict quality inspection procedures. Once the inspection fails, the product will be returned for repair and will not be released to the market before it passes." Liu Luanxiong is very confident about this.

(End of this chapter)