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

Xie Yichu was born in 1896. The old man is now 91 years old. The Xie family's CP Group is currently managed by his second son, Xie Guomin.

Dhanin Chearavanont was born in 39 and is almost 50 now.

Wang Yaotang still had a lot of face. The next day, Lao Xie took a private plane to Shanghai and accompanied him to visit the Yi Chu Motorcycle Factory.

Originally, Lao Xie was quite annoyed at being called over from so far away, but seeing Wang Yaotang's envious and jealous expression, he became happy again. The foundation and network that the family had built up over decades, no matter how much trouble you cause, cannot be surpassed in a short time.

With Lao Xie leading the way, all departments and all information were made public to Wang Yaotang.

"The localization rate is not high, only about 30%. The main parts are the engine, which is the original powertrain of the Honda CG125; the carburetor is from Keihin, Japan; the Denso system is from Seiko, Japan; the shock absorbers are from Showa, Japan; the wheels are 72-hole spoked wheels from DID, Japan; and the tires are from Bridgestone, Japan." Lao Xie said in a deep voice, "Currently, we can only produce structural parts such as the frame, fuel tank, and some body panels, but there are indeed gaps in industrial precision and material performance."

"Huh? Can't we use domestic alternatives?" Wang Yaotang asked, quite surprised.

"No, we have obtained a production license for the Honda CG125, and the quality must be subject to Honda's supervision. After all, if there are quality problems, Honda's brand value will be affected."

"I see." Wang Yaotang smacked his lips. "So this place is actually just an assembly plant."

Old Xie chuckled.

"What about the old Happiness 250? What is its domestic production rate?"

"Over 90% of the components, except for tires, rubber seals, spark plugs, and some electrical parts, can be produced independently. In fact, the Happiness 250 is the main product the motorcycle factory is currently producing. The 125 is only in trial production this year, with a target of 100 units, to break in the production line and test for quality issues that arise during production." Lao Xie said with a smile, "After introducing the 125 production technology, the assembly process of the 250 has been greatly improved. The factory has established a full-process quality control system from casting and machining to vehicle inspection. Taking the machining accuracy of the engine block boring as an example, it can be controlled within ±0.01mm, which is 10 times better than the initial 60."

“So, I want to set up an assembly plant in Myanmar, and I still need to import a 250 assembly line.” Wang Yaotang stroked his chin.

Old Xie nodded and then shook his head, "It might not be as simple as you think."

"How to say?"

"Assembly is not as easy as you might imagine. The Happiness 250 has more than 900 parts, with about 400 of them being major parts. Even if the engine assembly and transmission system are manufactured here and sent to you, you still have to assemble the frame assembly, suspension, brakes, and wheel drive yourself. Each frame has 30 parts that need to be welded. Without skilled welders, even a 1-millimeter error in position can cause the frame to deform later on..." Old Xie shrugged.

“With so many parts to assemble, you’ll eventually find that either they won’t fit or there are huge gaps. The assembly precision will drive you crazy, and then there are quality issues. Poor assembly precision will cause malfunctions to skyrocket. Currently, Yi Chu’s Happiness 250 can achieve a 3% failure rate over 600 kilometers, but once you get to Myanmar,” Old Xie shook his head, “the failure rate will conservatively increase by 30 times!”

"30% failure rate, 90% failure rate, even higher? Is that a toy car?" Wang Yaotang's eyes widened.

"I'm talking about a failure rate of 600 kilometers. If the assembly precision is not high enough, it will already break down after running 100 kilometers, which is 150 times higher."

Wang Yaotang's lips twitched. Damn it, it seems he's been tricked by Naiwen...

I don't actually own any businesses like this; I'm only halfway through my life...

He raised his hand and rubbed his face. He had already made the promise, so he had to do it. "Here's what we'll do: first, get a group of people to help me design a factory plan, the simplest assembly plan. If that doesn't work, we can just import the chassis directly. We'll only do the simplest assembly and expand gradually later."

"You..." Old Xie laughed, "...a repair shop."

"What can I do!" Wang Yaotang said irritably.

The matter was settled in just a few words. It made Lao Xie very happy that Wang Yaotang owed him a favor. Besides, this way, they could also make money in Shanghai, since it was all for export, so it didn't matter.

After being severely discouraged by Lao Xie, Wang Yaotang gave up his idea of ​​finding a factory to form a joint venture. This matter is not so simple.

Just then, news came from Guangzhou that the new 0⑶⒎ model that had been commissioned for customization had completed its water testing and that he should go and inspect it. Upon hearing this, Lao Xie immediately became interested and grabbed Wang Yaotang's hand, wanting to go and take a look together.

Steel and gunpowder are the ultimate romance for men. Old Xie is just getting old, not changing his gender...

He was genuinely shocked and incredulous at what Wang Yaotang had done over the past two years.

Developing a private military force is one thing, but this small force is fully equipped with land, sea, and air power. It intervenes in local conflicts, fights against regular armies and even wins, and last year it completely overwhelmed the Annamite navy. It's simply...

Go against Tiangang!

Two days later, Wang Yaotang brought Lao Xie to Guangzhou. After getting off the plane, they went straight to the shipyard. Everyone there was an old acquaintance, so there was no welcoming ceremony. His secretary was waiting at the entrance. After picking them up, they went straight to the dock behind the shipyard.

Before he even got out of the car, Wang Yaotang spotted the two small steel beasts moored at the dock.

If he hadn't known that this was the warship he had customized, he would have had no idea that it had anything to do with 0⑶⒎.

"Comrade Yaotang." The factory director waved with a smile.

"Good afternoon, old factory director." Wang Yaotang gestured and introduced, "This is Mr. Dhanin Chearavanont of the Siam Charoen Pokphand Group, the first foreign-invested enterprise in China, and a renowned patriotic businessman."

After introducing themselves to each other and exchanging pleasantries, the group boarded the moored 0.

"This missile boat was designed according to your requirements." The old factory director smiled and personally introduced it: "The displacement has been upgraded from 390 to 500, the hull is sloped for stealth design, the superstructure is fully enclosed, the power system has also been improved, an additional engine has been added, the maximum speed has increased to 34 knots, two twin-mounted YJ-8 launchers, two PJ-76A 37mm twin fully automatic naval guns as main guns, two Type 69 twin 14.5mm machine guns as secondary guns, a Type 352C missile guidance radar, a Type 341A fire control radar, the sonar system has been retained, and anti-submarine weapons have been removed."

"The design concept has been changed from a submarine chaser to a missile escort vessel, emphasizing anti-ship strike capability."

"Wow, I don't remember we were asked to do stealth design, and they even upgraded it!" Wang Yaotang said with great surprise.

The old factory director laughed, "This is an experimental model, so of course we've incorporated all our best ideas."

"Good news, good news," Wang Yaotang said with a smile.

"Actually, the higher-ups had also issued an order to design a warship for the future Hong Kong garrison based on the 0 prototype. It just so happened that they all came together and were put to use," the old factory director explained with a smile.

(The first ship of the Type 0II (Red Arrow Class) entered service in 1991, with a total of 6 ships.)
This made it clear to Wang Yaotang that different needs require different design directions.

They moved to another 0, which was a more powerful version with increased firepower. Its displacement was also increased to 500 tons, with 3 engines and a speed of 34 knots. The anti-submarine equipment was removed, and no anti-ship missiles were installed. The space was used to upgrade the gun system.

The main gun is a Type 79 twin-mounted 100mm naval gun, which was finalized in 1985. It is fully automatic, with a rate of fire of 50-60 rounds per minute and a range of 22.5 kilometers. It is hydraulically driven and is the main gun of the 05⑶H series frigates.

The secondary armament consists of two PJ-76A 37mm twin-mounted fully automatic naval guns, as well as two Type 69 twin-mounted 14.5mm machine guns.

Faster speed, same rate of fire, and more powerful firepower.

Reaching out and grabbing the barrel of the 100mm naval gun, Wang Yaotang really wanted to kiss it. This caliber, it just seems like theirs makes sense!
If we had had 100mm naval guns earlier, we wouldn't have had to exert so much effort when facing the Annamese. A few shots would have shredded their small boats of about 20 meters into pieces!
What kind of small cannon is this?!
"So ferocious, so incredibly ferocious!" Wang Yaotang burst into laughter.

"Don't get too excited yet," the old factory director said, pouring cold water on the idea. "This doesn't seem like a missile boat. At least after relevant tests, we are quite confident. But the enhanced artillery version didn't have any prior design, so its effectiveness still needs to be tested in actual combat."

"No need to test it, it's scary enough just to look at!"

The old factory director just smiled and didn't say anything.

This wasn't Lao Xie's first time boarding a warship, but the Siamese warships were all too old, completely different from this new type of warship. Just looking at it, he felt a strong sense of technology. He touched it left and right, his mouth agape with excitement.

Wang Yaotang walked over, patted Lao Xie on the shoulder, and stomped his foot loudly, "Mine!"

Then he pointed to the missile boat next to him, "Mine!"

"See that missile?"

"Let's see who dares to raise their voice at me now!"

Old Xie's expression froze, his face filled with utter speechlessness. No wonder he immediately agreed to come and see for himself; he was just showing off!
Isn't it just that you're envious of Yi Chu Motorcycle Factory?
Isn't this a bit too vengeful?

What a petty person! But I'm so damn envious!

I wish these two warships were mine.

I don't know what I can use it for...

After spending two days in Guangzhou, Lao Wei arrived with his marines; the actual inspection would have to be done by them.

The original two 0 ships were badly damaged after fighting the Annamese and returned to the Guangzhou shipyard for repairs. They had been resting in Hong Kong, and were even more excited than Wang Yaotang to see the new warships, since they would be the ones to pilot them.

At Wang Yaotang's request, the new warship was equipped with air conditioning, which greatly improved the living conditions; otherwise, it would have been too arduous to stay at sea for a long time.

Upon arrival, they couldn't immediately set sail for testing. Professional personnel were needed to train them on how to maintain and use the YJ-8 missile. After a week of training, they were taken to sea with the shipyard's technical staff. The Xingye accompanied them for resupply and carried them out to sea for various tests.

It will be another month or two before they can participate in actual combat. The various live-fire tests will cost a lot of money. The design, construction and testing of the two ships will cost about $1200 million.

Wang Yaotang didn't seem to care much about this.

After spending a few days at sea, personally test-firing an YJ-8 missile and enjoying the thrill, watching the dilapidated ship he had bought as a target explode into a fireball and slowly sink into the sea, Wang Yaotang let out a long, satisfying sigh.

Lao Xie: I want to play this!

How much? Name your price!

At his age, Lao Xie always felt like he hadn't eaten, seen, or played anything, but now that he's old, he realizes that young people are much more adventurous!
The key point is that this thing made Lao Xie, a 49-year-old, feel his blood boil.

"This isn't about money!" Wang Yaotang said with a stern face.

“$50!” Old Xie waved his hand.

The engineer from the nearby shipyard had a bright idea. "This is a good idea! The YJ-8 only costs 48 RMB. Someone is paying for it, and we can even test the data by firing one." Why not?

"Old Xie, go home tonight and get some rest." Wang Yaotang scoffed. 50 yuan? Who are you talking to!
"One million!" Old Xie raised his hand again.

The engineer's eyes immediately reddened. "Great!"

Wang Yaotang pointed at the engineer with an indignant look, "Look at you, so worthless, bowing down for a million dollars?"

The engineer grinned. "Comrade Yaotang, the French Exocet MM38 carrier-based version is priced at $35 to $45, while the American Harpoon carrier-based version is $50 to $60."

"I gave too much!" Old Xie was very distressed.

"So what? Buy it, set it up on a clothes rack, and launch it!" Wang Yaotang said irritably. "You need warships to support it, you need radar. Don't target ships cost money? Don't my soldiers' salaries cost money? I can sell it for $150 million, believe it or not. You guys should use your brains more for research. Selling things is so unprofessional!"

Old Xie burst into laughter.

Of course, that was a joke. Neither of them really cared about the hundreds of thousands of dollars. However, launching the target ship was not that simple. It would take two or three days to bring the target ship back.

Unlike Wang Yaotang, who often shirked his responsibilities, Lao Xie insisted on taking a helicopter trip between Dongsha and Hong Kong every night to squeeze out time to go out with the warships and enjoy himself, making the most of his evenings to work quickly.

Though you may grow old, your heart may remain young!
Of course, it was impossible to accompany him through the entire test. After playing along for more than a week and personally pressing the button to launch a YJ-8 missile, he finally felt completely refreshed and contentedly returned to Hong Kong with Wang Yaotang.

……

Victory Building, top-floor office.

"Wow, isn't this the famous Little God of Wealth, the Southeast Asian Sea King?" The four-eyed guy exclaimed loudly with an exaggerated expression, "What brings the Sea King here today? My company is truly honored."

"No, no, no, just call me Xiao Wang." Wang Yaotang chuckled and rubbed his hands together. He'd left all the company affairs to the four-eyed guy; he was so tired his eyes were practically black...

"Oh, it must be Xiao Wang."

Wang Yaotang pointed and said, "Garlic Bird, Garlic Bird, we're all brothers."

After giving Wang Yaotang a good dressing down, Four-Eyes finally felt much better. He called some people over and set up a barbecue in the glass greenhouse upstairs, where they ate and drank while listening to his report.

After listening to most of what he had heard, Wang Yaotang recounted his observations at the motorcycle factory in Shanghai: "Our industries are either light assets like nightclubs, cultural and audio-visual products, and tourism, or fixed assets like mines and docks. The only thing we're doing is textiles. We're completely blank in industrial product manufacturing. I feel this won't do."

"No, Yao-ge, although companies tend to diversify when they reach a certain stage of development, don't you think you've gone too far? Other people's diversification is at least related to related industries, connecting upstream and downstream. Yours is just too messy, isn't it?" the four-eyed guy said irritably.

"Who says diversification has to be linked to certain industries? If that industry has problems, wouldn't the whole chain be in trouble? What's the point of diversification in terms of mitigating risks?" Wang Yaotang asked softly.

"Isn't connecting the upstream and downstream of the industrial chain precisely increasing our ability to withstand industrial risks?"

"You've narrowed your perspective." Wang Yaotang leaned back in his chair, crossed his legs, took out a cigarette and put it in his mouth, then tilted his head and looked at the four-eyed guy.

The bespectacled guy tossed the guy over, saying, "If you don't smoke, you're gone!"

Wang Yaotang raised his middle finger, took a puff of his cigarette, and then said, "Take Hong Kong as an example. The Hong Kong government releases very little commercial land each year, artificially creating high housing prices and the real estate industry is developing very quickly. But even if you are like Li Xiangjiao and connect all the upstream and downstream industries, what will happen once too much land is released?"

"Ah, you, this..." The four-eyed guy was a little surprised, and scratched his head. "No way, they released so much land in a crazy way. If the real estate market collapses, there will be huge chaos."

Wang Yaotang chuckled twice. He clearly remembered that after the handover, in order to improve the quality of life for Hong Kong citizens, alleviate the pain caused by high housing prices, and calm the anxiety of Hong Kong citizens caused by the handover, the higher authorities required more land to be released, and launched the "85,000 Housing Units" housing plan, with the goal of achieving 70% homeownership within ten years, building more houses, increasing employment, and reducing consumption...

That's a good idea...

The real estate market entered a prolonged five-year recession and nearly collapsed.

At the time, not only were these real estate tycoons fiercely opposed, but the reaction from Hong Kong citizens was also not as welcoming as they had imagined back home...

Hong Kong households have seen their average net worth shrink by 38%, with the wealth of the middle class suffering significant losses.

The non-performing loan ratio surged from 1.4% in 1996 to 6.0% in 1999.
I'm caught in the middle, neither side can accept this.

The real estate market only began to recover after the "85,000-unit" plan was cancelled in the second half of 2003, and market and public confidence returned as well...

Of course, it's not entirely without its benefits; at least we've learned that the housing bubble absolutely cannot be burst, or it will collapse!
This was a case of learning from experience in advance; later, our hometown figured out how to navigate Hong Kong's situation...

The "Northern Metropolitan Area" plan, launched in the last two years, aims to build 900,000 housing units and is seen as a continuation of the "85,000 units" spirit. Whether it's good or bad remains to be seen...

Another experiment?
However, at that time in the latter half of 87, no one knew that such a thing would happen; Japan's real estate bubble would not burst until 91.

"I'm just telling you about the policy risks. My planned diversification involves multiple unrelated industries. If one industry fails, another will. Even if one industry runs into problems, we can simply cut our own losses while leaving the others unaffected."

Wang Yaotang's attempt to justify his sudden idea left the bespectacled boy stunned; it actually sounded quite plausible.

Anyway, the four-eyed guy was convinced.

"What are you up to now?"

"Didn't you previously suggest that we produce our own videotapes? I think that's a good idea. It would connect the upstream and downstream industries, increase our resilience to risks and improve our profit margins. Let's start with that."

"No...you...fuck you!" The four-eyed guy was speechless. (End of Chapter)