Hong Kong Island: From a small stall to a global supplier

Chapter 371 This small workshop really uses ruthless materials!
The area currently undergoing land reclamation is the west side of Yau Tsim Mong, which later became West Kowloon. It consists entirely of upscale residential communities and commercial buildings. Further north is the area connecting Stonecutters Island, where the eight piers of Kwai Chung were later located.

These reclamation projects were carried out in phases. Once the projects were completed, the land would be auctioned off, and the proceeds from the land sales would be used to support the Hong Kong government. By selling land, the Hong Kong government was extremely wealthy!
The Hong Kong British government began using land economics for development in the 20s, accumulating rich experience and achieving remarkable results. This approach was later adopted and applied by many countries.

Countless people have been eyeing the Hong Kong British government's budget, and Wang Yaotang has long coveted it. Now I can finally get a share.

The next day, Xiong Demin, Su Guangxuan, and Jiao Peilin were summoned and first reported on their respective work.

The work in Shek O and Lamma Island was basically completed. The workers signed new contracts and had no further connection with the British Hong Kong government. The wage structure was also readjusted, and work efficiency increased by 50% compared to before.

Of course, this is compared to the written report; the actual improvement is less than 20%, but it's still quite significant.

As for the troublemakers in the company, there were more than 100 people from the two families, and they were all fired. This was not done by Xiong Demin and his group, nor did they have the ability to do so. It was Gao Lishi who led people to arrest them and collectively persuade them to resign.

It was a quarry from over a decade ago. The sky was blue, the wind was gentle, softly caressing you and leaving behind clusters of green and purple petals...

Gao Lishi also personally communicated with the group, and then... he was panting heavily from exhaustion.

When Gao Lishi reported to Wang Yaotang after doing a good deed, he smiled broadly. "There were no troublemakers at all. They were all very easy to talk to. We had a very pleasant chat. They had been wanting to resign from the company for a long time and were preparing to go out and try their luck on their own. I gave them a good encouragement."

The law cannot solve all problems; the more wicked a person is, the more likely they are to exploit legal loopholes.

Wang Yaotang: Keep swearing!
As previously agreed, Wang Yaotang still had Xiong Demin and Xiong Demin sit in the general manager's position. However, compared to when they worked for the Hong Kong British government, their work attitude was completely different now. They had shed their old-fashioned air and were now serious, responsible, and full of passion.

It can only be said that the problem is not with the people, but with the system and management.

"What difficulties is the company facing right now?" Wang Yaotang asked.

“Lamma Island’s previous ore crushing and screening equipment was sold to Zhuhai. Now, production has not only resumed but also increased, so we need to purchase a batch of new equipment,” Su Guangxuan said softly.

"Yes, is there any money in your account?"

"Have."

"Then let's make the purchase."

"Any more?"

“Transportation. Previously, the stone from the quarry was supplied to the land reclamation project. They would bring their own ships to the dock to pick it up. Now…” Su Guangxuan stopped talking.

Wang Yaotang nodded, then turned to Xiong Demin, "What about you?"

“Similar situation.” Xiong Demin said with a smile: “Boss, in terms of mining technology, management and in-depth development, Jia Hua is indeed doing better than us. It’s not that we didn’t want to learn before, but the system limited us and we could only do nothing. Now, under your leadership, Yao Ye, you have cleared the way and the company has a brand new look. We at Shi Ao Mine are all ready and can’t wait to learn and reform under your leadership and create new glories.”

Wang Yaotang laughed and pointed at Xiong Demin, "You son of a bitch, if you can talk, then say more!"

Su Guangxuan turned his head and stared at Xiong Demin in disbelief. "Damn it, you bootlicker!"
"Brother Yao, me too!"

"As for your studies, go find Gu Yuanbin. I'm certainly happy that the mine is upgrading its technology and increasing production, but don't be impatient for quick results. You're not going to work for me for just a year or two. If problems arise later, the responsibility will still fall on you." Wang Yaotang tapped the table. "I want rapid development, but also stable development, understand?"

Wang Yaotang has finally become the very thing he used to hate the most: wanting everything.

"Don't worry, Master Yao, I've got it covered," Xiong Demin said, patting his chest.

“Brother Yao, me too!” Su Guangxuan said loudly.

Xiong Demin glanced at him sideways, his heart filled with disdain. This guy was used to ruling Lamma Island and had forgotten how to flatter. He was not worth worrying about!
“I called you here today to announce something. Yesterday I spoke with the Public Works Department and the people behind the general contractors of the reclamation projects. The Ka Wah, Shek O, and Lamma Island quarries have all gone bankrupt. Ultimately, it’s because the cost of stone mining is too high, causing the cost to cover the selling price, which is why they went bankrupt. Therefore, a price increase is inevitable!” Wang Yaotang said with a serious face, “Prices will increase by 30% later.”

Xiong Demin blinked three times. "If I hadn't been dragged onto the ship by the fake police you sent, I almost would have believed it!"
“Brother Yao is right. The cost of mining is too high. Mining is not an ordinary industry. It involves dealing with explosives all day long. No other industry in Hong Kong has a higher rate of workplace injuries than mining. We bear an unusually heavy labor cost, but the price of ore has not increased at all in two years, while the price of goods has increased by 30%. A price increase for ore is inevitable!”

Xiong Demin waved his arms, his face red and neck bulging as he shouted, "If prices don't rise, Hong Kong's stone mining industry will be finished. Those who rely on stone mining for their livelihood will lose their jobs, and their families will be broken. On behalf of the more than 6000 people employed in Hong Kong's stone mining industry, I thank Master Yao!"

Xiong Demin bowed deeply, tears welling in his eyes, "Master Yao is wise! We can never repay Master Yao's kindness!"

Damn it, Wang Yaotang really wanted to point his finger at Xiong Demin and scold him for exaggerating, but the corners of his mouth just involuntarily turned up, "That's too much, that's too much."

Seeing the smile spreading across Wang Yaotang's face, Su Guangxuan was filled with hatred. "Xiong Demin, you treacherous villain, you've flattered me to the point of exhaustion!" With no other option, he could only raise his arms and shout, "Long live Master Yao!"

This sudden shout startled Wang Yaotang.

“Brother Yao, we’re going to carve a stone statue of you at the company gate on Lamma Island, so that every employee knows who the boss who pays them is, and who they should thank. Brother Yao, you are the sun of Lamma Island!” Su Guangxuan said loudly.

Wang Yaotang was both amused and exasperated. "This is getting more and more outrageous."

Xiong Demin turned his head to look, his eyes filled with disbelief. Damn it, they're really going all out in this small place!

"Alright, alright, stop wasting your time on these crooked ideas. Think about how to make the company better and generate more profit; that's more important than anything else." Wang Yaotang wanted to give them a stern lecture, but…

The two nodded vigorously, understanding. "Use less" meant they were going to use it!

Jiao Peilin couldn't get a word in edgewise. The output of that lousy mine in Fanling was too small, and as for Zhuhai... he wouldn't dare to do such a thing even if you beat him to death. He was so anxious that he was sweating profusely.

Damn it, you bunch of sons of bitches, you're sucking up to me without even including me!

Die, die, die!
The contracts that the two mines signed with the engineering company are definitely off the table, but there's always next year. When the company's profits soar, the mines will be in Wang Yaotang's hands. In addition to their salaries, Xiong Demin and Su Guangxuan, the management team, will also receive some bonus shares. They'll share in the company's increased profits next year, so of course they'll be happy.

However, Jiao Peilin was the first to benefit, which was something he hadn't expected.

With Jia Hua ceasing production, Zhuhai filled the market share. The contracts were transferred from Jia Hua to another company. In order to quickly drain Jia Hua's resources, they offered them prices higher than the sellers. All the profits and working capital of the company were tied up in Yaoming Building Materials.

Under reasonable and legal circumstances.

Only Yiu Ming in Hong Kong has the goods; in a market economy, price increases are inevitable!

Gu Yuanbin and his associates didn't take a single penny in this transaction, so why are they accused of breaking the law?

After explaining the price increase, Xiong Demin showed Wang Yaotang the company's restructuring plan, which included equipment upgrades.

After a quick glance, Wang Yaotang thought for a moment and said, "Let's scrap this part and pay Yaoming to handle it."

Jiao Peilin got both the equipment and the money, getting the best deal.

Xiong Demin nodded. It was a little trick to embezzle assets. They used to make money this way too. Doing it within the company turned it into a tax avoidance method.

Jiao Peilin reported on the progress of the Zhuhai ore dressing plant. The same old problems persisted: power shortages, fuel shortages, and insufficient operating rates. Some people had previously mocked the fact that people in the north were still using oxcarts and mule carts to haul stones, which was indeed the reality and extremely inefficient.

Wang Yaotang felt a headache coming on. He couldn't solve these problems in a short time, so he promised to go and take a look as soon as possible, and then nothing happened.

After they left, Gao Lishi came running over again.

As soon as he entered, Gao Lishi bowed deeply and said loudly in a decaying voice, "Greetings, Master Yao!"

"You fucking bastard, get to the point!" Wang Yaotang said, speechless.

Kneeling in reverence, suddenly it doesn't seem so decadent after all...

"Brother Yao, the Boji Bay branch—no, the Boji Bay Company—want to start a small ferry service," Gao Lishi said with a grin.

"What made you think of doing this?" Wang Yaotang asked curiously.

"It's profitable. I only realized how many people travel between the two piers every day after I went to Kwun Tong. Later, when I was doing business in Shek O and Lamma Island, I found that many people also took the ferry to these places. Many people from Kwun Tong work on the main island, and some people from Po Kei Wan work in Yau Tsim Mong and To Kwa Wan. If you take the bus, it takes more than an hour and the ticket price is more than ten dollars. I had someone keep an eye on it and calculate it every day. Wow, there are about 50,000 people traveling between the two places every day."

"You've even learned how to do business, you're quite shrewd," Wang Yaotang joked. "I remember it was the Star Ferry, wasn't it?"

"It's all thanks to Master Yao's excellent teaching. Back when we were with Shenxianjin, all he did was take us to play mahjong every day. Now it's different. Master Yao teaches us classes and reads the newspapers to us. I feel like I've gotten smarter lately. You become like those you associate with, so I've learned how to do business." Gao Lishi said with admiration, "I specifically consulted a lawyer. The parent company of the Star Ferry is Wharf Holdings, and now Mr. Bao is in charge. In addition, the Star Ferry's franchise routes are Central, Wan Chai, and Tsim Sha Tsui piers. They obtained the franchise in 1933, and the newly built piers have nothing to do with them."

"The classes were supposed to teach history and politics, but how did they turn into a tale of treacherous officials?" Wang Yaotang laughed and scolded. "You said more than 5 people cross the sea every day, so does that mean someone is running the business now?"

“Hehe, yes, there are triads operating at Sam Ka Wan Ferry Pier, Kwun Tong Ferry Pier, Kowloon City Ferry Pier, Hung Hom, East Tsim Sha Tsui, North Point, Po Kei Wan, and Chai Wan. They’re making a mess of things and charging exorbitant fees.” Gao Lishi said, then suddenly became serious. “Master Yao always taught us that while making money as businessmen, we shouldn’t forget to give back to the people. I’m just thinking of solving the travel problems for the people of Hong Kong Island, and doing what I can for the British Hong Kong government and the people of Hong Kong and Macau.”

"Come here." Wang Yaotang beckoned with his finger. I suspect you're mocking me.

Gao Lishi leaned closer, bent down, and Wang Yaotang slapped him on the head.

"I don't care what means we use, I don't care how we fight later, but first we need to get the license to operate legally, understand?" Wang Yaotang pinched Gao Lishi's face and tugged at it.

"understand!"

"Alright, tell me, what are you planning to do?" Wang Yaotang asked, somewhat probingly.

"The Transport Department is responsible for approving the operating rights, the Marine Department for technical supervision, and the Transport Division for policy approval. I've already arranged for people to investigate them. None of them are immune to corruption. Find their dirt, then bribe them. Either we all get rich together, or we ruin their reputations. Once they're out of business, crushing them won't be harder than crushing ants. They'll know what to choose," Gao Lishi said with a sinister smile. He had been heavily involved in the later stages of the Shek O and Lamma Island saga and had truly learned a lot. "We can also try to get their families involved in gambling. The Broken Tooth Group will definitely cooperate. Those who don't like gambling will definitely like women. We can easily find dozens of those gold diggers who specialize in seducing men. I don't believe their families are all saints who don't touch gambling or prostitution."

"Once they're in the water, they have no say in the matter!"

Wang Yaotang pursed his lips, wondering what was wrong and why his subordinates were all such treacherous and wicked people!
Thankfully, the word "poison" wasn't mentioned, otherwise they would have had to expel them from the party.

“Your mind is full of such underhanded tricks. You can’t rely on conspiracies and tricks for long. You need to have a good reason to explain to your superiors when they approve the operating rights. If you can use these methods, why can’t others?” Wang Yaotang pointed out, “These private airlines operated by these gangs definitely have many problems, such as theft, poor service, and indecent assault.”

Gao Lishi nodded quickly, "Yes, and there are many."

"Report the conflict so that everyone can see it. That way, it will be legitimate for the departments to be granted operating rights. Of course, it's impossible to have reporters follow the ship every day to take pictures, and that could be dangerous. We can arrange for people to simulate the conflict a few times. We can arrange for people to take pictures in advance. As for the issue of hype, you can go to Yaoxing. They are more familiar with the media and can make things bigger."

"Master Yao is tall, Master Yao is hard, Master Yao is both tall and hard!" Gao Lishi suddenly realized, his face turning red with excitement. He had failed miserably! He had failed miserably!

"Alright, you sycophant." Wang Yaotang waved his hand with a smile. "Remember, you're operating legally. Don't use those old tricks to tarnish the company's image. Also, don't make the first move. Use commercial performances to compete and force other gangs to make the first move. You need to have the moral high ground, understand?"

"Understood, understood. Our Shengyi army is strong and invincible. We must act with a just cause and crush the enemy with a righteous army." Gao Lishi understood and nodded repeatedly.

"Alright, get lost."

"Yes, sir!" Gao Lishi knelt down and bowed deeply, then took two steps back before turning and leaving.

"Damn it," Wang Yaotang cursed with a laugh.

……

Yaode Seafood Restaurant.

If time permits, Wang Yaotang and his brothers all come here to eat, chatting as they eat. Even if the food is packed up and delivered, it's not as delicious as freshly made food, even if it's not cold.

"Brother Yao, Gu Yuanbin called me this morning and said that the liquidation is progressing very quickly and should be completed in about half a month at most. We need to prepare the money." Four-Eyes said while eating.

Wang Yaotang was most afraid of hearing anyone mention money to him, and his heart skipped a beat. "How much money is left in the account?"

"Where would we get the money? We're 5 million in debt." The bespectacled man lowered his head and picked up some food.

"Holy crap!" Wang Yaotang threw down his chopsticks, his eyes widening instantly. "Wait, where's the money?"

Seeing the bespectacled guy looking at him with annoyance, Wang Yaotang touched his nose. "No, I mean, what's wrong? Why did it cost so much?"

"Let me calculate it for you..."

The acquisition of Shek O and Lamma Island cost 7 million, the loan for acquiring K Wah cost 4.5 million, the loan for K Wah from Li Xiangjiao cost 3 million, the donation to the mainland was 1.2 million, plus some miscellaneous expenses, totaling more than 16 billion in six months.

Personal accounts and company accounts are separate. If Shengyi Investment Company invests, the shares will be diluted in the future. Wang Yaotang is not setting up Shengyi for poverty alleviation, so of course he will not use the name of Shengyi.

"The cash flow from the clothing company, entertainment company, audio-visual company, and recording company has all been diverted. It's all thanks to the 10 billion yuan order we secured after the funeral of Tigu Dong that we had enough cash flow," the four-eyed guy said calmly to Wang Yaotang.

"Holy crap..." A-Jie and A-Ji grinned, glancing at the two men's faces, but dared not utter a word.

16 billion? Just hearing that makes my head hurt.

"No, you're not lying to me this time, are you? There's no money left in the company account? With so many companies, aren't their annual profits all in the hundreds of millions?" Wang Yaotang asked, grinning.

"There are several hundred million. Yaoxing is expected to make 2 million in profit this year, which is very high. The videotape market in Hong Kong is just starting out. How big can it be? Is it free to stock up?" The four-eyed guy said, counting on his fingers. "Hongdou is making good profits. It is expected to make 3 million this year. Giordano is just average. With the opening of stores and transformation, it will be at most 5000 million."

"The entertainment company is quite stable, with more than 60 stores throughout Hong Kong, plus the one in Macau. Based on this trend, it can make a profit of around 8 million this year. The recording company's orders are already full this year, with a profit of around 2 million."

"15 billion is enough, isn't it?" Wang Yaotang breathed a sigh of relief.

"Brother, it's only been half a year, and you've already spent all the money."

"No, over 60 nightclubs, and that's only 8 million a year? That's an average monthly profit of 100 million per club, less than 3.5 a day. And these are all medium to large-sized nightclubs, this is far too little!" Wang Yaotang asked, frowning.

"Less? Brother, we only own about half of the shares in the entertainment company. This is the profit that ends up in our hands, and we still have to pay taxes. You said it yourself, we can avoid taxes, but we can't evade them!"

"Hiss—" Wang Yaotang gasped for breath, "Why do I feel like I've been working for someone else all along?"

“Yeah, we run all those nightclubs, why should we get half of them?” A-Jie chimed in, clearly annoyed.

"Brother, are you kidding me? We robbed those nightclubs," the four-eyed guy said with amusement.

"Hey, hey, hey, what robbery? I paid for it!" Wang Yaotang said.

"Did it cost at least 2 million in total?!"

"Just tell me whether there were flowers or not!"

"That's true, it did cost money, but some of the shareholders are property owners. You could kick them out, but you'd still have to pay rent, so you wouldn't save much, and it would just damage your reputation."

"Oh right, we don't pay rent." Wang Yaotang rubbed his hair.

"Otherwise, how could the profit margin be so high?"

How much tax do I need to pay?

"Corporate profits tax: The first HK$20 of profits is taxed at a rate of 17%, and the excess is taxed at a rate of 33%."

"Didn't you say it was a low tax rate? 33% is still called a low tax rate?" Wang Yaotang immediately became furious.

"It's very low. The combined tax rate for federal and state taxes in the United States is 47%, in the United Kingdom it's 45%, and in France and Germany it's 51%."

"I fucking...so much?" Ah Jie's eyes widened. "Damn it, didn't the government take all the money?"

"Do you think!"

"Brother Yao, let's establish a nation! Wouldn't it be wonderful to sit back and collect taxes?" Awei jokingly egged him on.

“That’s excellent!” Wang Yaotang nodded emphatically.

After the group had been arguing for a while, the four-eyed guy tapped his bowl with his chopsticks and asked, "That's enough. How do we solve the money problem?"

"The only solution is a loan. Since you asked, there must be a solution. Tell me." Wang Yaotang raised his chin.

"You get to choose: use the company as collateral, the shares as collateral, or your personal name?" the four-eyed man said in a deep voice. "For example, with the entertainment company, if we use Tianxiang Investment, the profit will immediately be negative, and we won't have to pay the 33% tax. Of course, half of the shares will also be distributed."

"In addition, I also suggest taking out large-scale loans. The Hong Kong dollar is depreciating too fast. By the time the negotiation results are released, we don't know how much it will depreciate in the end. It's better to take out more loans now to avoid losses."

“We definitely can’t split it!” Wang Yaotang shook his head. “If we use it like this, Hongdou, Tiansheng, and Yaoguang can be used as collateral for loans.”

"What about Yaoxing? Yaoxing offers more loans."

“Yaoxing still wants to share money with Zhang Rongyao and Mo Shijiu. I’m already being lenient by not kicking them out. Sharing money? What a joke!” Wang Yaotang snorted. “As for the devaluation of the Hong Kong dollar, I have the opposite opinion. After the negotiation results come out, it will definitely appreciate in value compared to now, so we will borrow US dollars.”

"How could it appreciate in value?" The bespectacled man frowned. "Li Menghui's team of financial experts at the asset management company predicted that it would definitely depreciate. They said that the market as a whole was making the same judgment, and it is indeed depreciating now. The wealthy are all transferring their assets, and things will only get worse when the real crisis hits."

"What kind of bullshit expert team is this? I'd be better off believing I'm Qin Shi Huang!" Wang Yaotang rolled his eyes. "If they're so capable, why aren't they billionaires and are they working for us?"

The bespectacled guy shrugged. "The reason? Just because you believe in the North?"

"What did they say?" Wang Yaotang raised his eyebrows.

"The UK's fourth largest economy, and the Commonwealth economy is mutually beneficial."

"It seems reasonable, but it's utter nonsense. Little Britain is about to lose Ireland and can't unite with the Kingdom on the other side of the world. Besides sucking blood, has it created any jobs or had any ocean trade? That little bit is hardly enough. But the north is right here, and the import and export trade is real. Don't look at finance; finance itself cannot create real value." Wang Yaotang shook his head as he spoke. "Forget it, just remember my judgment."

"Let's talk about the loan again."

“Okay, for a loan, go to HSBC,” the bespectacled man said softly.

The group exchanged glances and burst into laughter.

"Pfft, hahahaha——"

(End of this chapter)