The unparalleled talent of the country started from Harbin Institute of Technology

Late October 1987, inside an office building on Park Road, Guangzhou.

Yuan Youlan's exaggerated laughter could be heard very clearly from a kilometer away.

Why was he so happy?

Just now, Yuexiu Company's Hong Kong headquarters reported the specific profits from the recent US stock market crash, which reached US$1.85 billion. Yuan Youlan was naturally very happy.

In fact, there wouldn't have been that much profit originally, but before the stock market crash, Yuan Youlan gave orders to Yuexiu Company to increase leverage and buy more shares.

That's why there were so many profits.

Otherwise, it would be at most eight or nine hundred million US dollars.

Ding Ding!

Yuan Youlan was overjoyed and immediately called Bingcheng, but unsurprisingly, she couldn't get through.

"That's true, Professor Wang must be very busy. It seems I'll have to make a trip to Harbin."

Now that the stock market crash is over, companies like Shanghai Chengtou, CITIC Securities, and Yinfeng Company must have all liquidated their holdings and left the market, just like Yuexiu Company.

Now that they have profited and left the market, Xia Huarong, Guan Chonggui, Qiu Xianzhang, and others will most likely call Wang Duoyu at this time.

Some of the smarter ones might even have taken the gifts and gone straight to Harbin, right?

So after hesitating, Yuan Youlan called Tong Jianwei, who was on the other side of Guangzhou.

Although the latter was also in Guangzhou, he was half a grade higher than Yuan Youlan, while Tong Jianwei had spent so many years in Harbin, so he was more familiar with Wang Duoyu.

"Director Tong, it's like this, I plan to go to Harbin to thank Professor Wang."

Yuan Youlan asked Tong Jianwei if he wanted to go back to Bingcheng with him, but the latter shook his head and refused, only asking him to pass on his greetings to Wang Duoyu.

That evening, Yuan Youlan took a plane to Harbin.

When he arrived at the island in the middle of the lake at Harbin Institute of Technology’s Weizigou campus, he was surprised to find a sign hanging at the entrance that said the island was closed to visitors.

Wang Duoyu is not on the island in the middle of the lake.

So where did he go?
He has retreated back to Dahonggou Village.

After the stock market crash, Wang Duoyu knew that people would definitely come looking for him one after another.

Just then, the cable from Harbin to Dahonggou Village was laid and passed the test, so Wang Duoyu did not stay at Harbin Institute of Technology, but took Liu Xiaoli and the others back to Dahonggou Village.

However, Wang Junhong will have to stay at Harbin Institute of Technology because he still has to study.

November has arrived in the blink of an eye.

In Dahonggou Village, there are many fish houses at the end of the village.

The wooden house that was built seven or eight years ago has now become an old house, and no one lives there anymore.

Right next to the wooden house, the house that Wang Duoyu's older brother and others helped build when he married his first ex-wife Chen Qingwan has been demolished and replaced with a small villa.

The most fashionable type of house now is a bungalow built with reinforced concrete and red bricks.

It's very popular in the South and will remain fashionable for the next one or two decades.

In Northeast China, single-story bungalows are the norm, but Wang Duoyu didn't follow the trend and instead built a two-story house with a floor area of ​​150 square meters, which is neither too big nor too small.

The villa on the lake island near the Weizigou campus is 200 square meters, which is much larger.

There is a difference, of course.

Because relatives would come to stay at the Weizigou campus, such as his two younger sisters.

There are also some other relatives and so on.

The situation is different in Dahonggou Village. There's no need for so many houses there, since this is the Wang family's stronghold, and every household has a large enough house to live in.

Even if relatives want to stay, there are plenty of rooms available.

"Dad, I'm so bored. Can I go outside and have a snowball fight?"

Inside the room, little Wang Jun'an said somewhat listlessly.

In November, the outside of Dahonggou Village was covered with ice and snow.

"How could I be bored? Don't you like playing with these building blocks? And this toy too."

"I'm tired of playing, Dad, I want to go out."

Since returning to the village a few days ago, the little guy has stayed at home and rarely goes out.

It's too cold outside, so going out isn't suitable. Also, children are prone to catching colds and fevers, so staying at home is the best option.

Wang Duoyu had no choice but to coax him:
"How about I call your older brothers and sisters over to play hide-and-seek with you?"

"Really?"

Seeing his father nod, the little guy immediately clapped his hands with great joy, indicating that he should make the call quickly.

Before long, many children came into the house.

The little kids had something to play with, so they stopped bothering Wang Duoyu.

Liu Xiaoli, however, came over carrying Qianqian. "Duoyu, the child seems to have a fever."

Upon hearing that Xixi had a fever, Wang Duoyu immediately became anxious.

After touching her, he realized that it wasn't Xixi who had a fever, but Liu Xiaoli.

Well, if an adult has a fever, that's even worse.

After all, she's a new mother, and getting a cold and fever at this time is truly a painful experience.

Wang Duoyu was speechless when he went back to his hometown and encountered all sorts of problems.

A day and a half later, Liu Xiaoli finally came down.

After she lands, Wang Duoyu plans to return to Harbin Institute of Technology to avoid more accidents happening in his hometown.

But at this moment, Zheng Baoyin and his group called to say that they had returned to Bingcheng and were on their way back to Dahonggou Village.

Since that's the case, then come back.

The expressway from Bingcheng to Shuanghe County is not yet completed, but that's okay, there are some sections that have been completed and cars can still drive on them.

Therefore, their return time to Dahonggou Village was shortened by about an hour.

By the time Zheng Baoyin and the others returned to Dahonggou Village, it was already 2 p.m.

It wasn't dark yet, but it was almost.

In Northeast China during winter, it gets dark very quickly, usually around four or five in the afternoon.

"Uncle Jiu, we're back! We've struck it rich this time!"

At the end of the village, in Wang Duoyu's house, Wang Jianchao followed the others into the study. Before the door was even closed, he couldn't wait to speak.

"Is it?"

Wang Duoyu smiled and then asked everyone to sit down and have some hot tea first, to warm their stomachs and hands.

After a while, Hela O'Brien was the first to speak.

Maple Tree Capital made a lot of money during this stock market crash, with its Quantum Fund, which ruthlessly ripped off George Soros, profiting at least $320 million.

Upon hearing this, Wang Duoyu nodded.

This is not surprising!
Although Quantum Fund is one of the most ruthless giants on Wall Street, its financial size is actually quite average.

Given that Soros has had an exceptionally smooth run of success in the past, this stock market crash is one of the few major setbacks he's ever experienced.

"Very good, you all did a great job!" Wang Duoyu nodded, but O'Brien suddenly said in a deep voice:
"Professor, before I returned to China, I received a phone call inviting me to a party."

"Later, I attended the event, and some of them asked me if Maple Tree Capital had started a private equity fund business?"

Private equity funds are a financial game that many Wall Street giants like to play.

Whether it's the renowned Quantum Fund, the Magellan Fund, or Bridgewater Associates, they all issue these private equity securities.

Of course, some are junk securities, while others are extremely valuable securities.

For example, before this stock market crash, the Quantum Fund was definitely the most profitable fund on the market, and many people wanted to buy its securities at a premium.

Jordan, who worked as a junior trader at Bridgewater Associates, earned commissions by making outbound calls to clients to sell Bridgewater's securities, stocks, and other products.

This also shows that Bridgewater Associates has a very large amount of capital and has issued a considerable number of financial derivatives.

Even within the same type of private equity fund, different financial products such as Phase I, Phase II, and Phase III have drastically different returns and management fees.

"What was your reply to them?" Wang Duoyu asked with a smile.

Hela O'Brien shook her head, indicating that she needed to think about it.

Wang Duoyu immediately gave a thumbs up and said:

“Great answer! I’ll discuss this private equity issue with you in more detail later!”

Private equity funds are a double-edged sword; if used properly, they can be an excellent thing.

But if used incorrectly, it can be a huge disaster.

Without sufficient confidence, no one would dare to do this.

Next, Lee Efra and others began to report on their work.

According to the statistics, Maple Leaf Holdings' total investment this time exceeded US$26 billion, of which US$20 billion was not leveraged.

However, the remaining six billion US dollars were leveraged, resulting in the total return not being the 15 billion US dollars that Wang Duoyu had predicted, but instead becoming 23.7 billion US dollars.

There is no doubt that this is a very large sum of money.

The profit is enormous.

After deducting $700 million in bonuses for traders and managers, there is still a net profit of $23 billion.

The next step is to discuss how to use the money.

However, Zheng Baoyin and the others have just returned, so let's eat first and talk about it later, there's no rush.

At six o'clock in the evening, after dinner, everyone gathered together again in the study.

Zheng Baoyin suddenly asked, "Uncle, I still don't quite understand why this stock market crash happened."

He had doubts before, but now that it has happened, he still can't understand it.

Upon hearing this, O'Brien, Lee Evra, Wang Jianchao, and others all looked at Wang Duoyu with curiosity in their eyes.

The two sisters, Wang Meili and Wang Meihe, sat in the corner. Although they often stayed by their ninth brother's side and listened to a lot about financial strategies, they still didn't quite understand why the United States had experienced a stock market crash.
The bull market has lasted for more than half a century, and even Wall Street giants like Soros and Buffett have fallen.

Even with a few giants like Dalio who short the US stock market, they are still a minority.

"why?"

Upon hearing this, Wang Duoyu immediately smiled and then gave them a brief explanation.

Although the matter is over and the profits have already gone into Want Want Group's pockets, Zheng Baoyin and his group are still senior executives of Want Want Group.

If they can understand all of this, perhaps they can broaden their perspective and be able to view problems from a higher level when they encounter them in the future.

There are several fundamental reasons why this stock market crash occurred.

First, there are huge fiscal and trade deficits.

"Last year, in 1986, the U.S. fiscal deficit reached a record high of $2210 billion and the trade deficit was $1652 billion."

Wang Duoyu said so.

As a result, the United States needs to maintain a high level of interest rates in order to attract foreign funds to make up for the lack of domestic funds.

This has a direct impact on stock market prices.

Secondly, since the 1980s, the economies of Europe and the United States have been in a period of slow growth, resulting in insufficient demand for productive investment.

For a simple example, Motorola moved their factory to Harbin, which is an example of shifting production outward to reduce costs and increase efficiency.

As a result, a large amount of surplus capital in the United States flowed into the securities market, leading to rampant financial investment and an unprecedented expansion of debt.

The savings and loan associations mentioned earlier, there are so many institutions nationwide, and they had already lifted financial restrictions in 1882, so they could make both short-term and long-term investments.

These investments have mostly gone into markets with higher profits, such as securities, stocks, and futures.

Simply put, this stock market crash is actually a reflection of the 'bubble economy'.

Third, with the decline of the United States' hegemonic position, the Western economic system and the global economy are in a state of extreme instability.

And international exchange rate volatility, severe international trade imbalance, and ongoing international debt crisis.

The Plaza Accord and the Louvre Accord are examples of this.

Zheng Baoyin and the others suddenly realized that there was so much to learn here.

"Of course, the most direct reasons are the other two points."

Wang Duoyu continued:

"First, higher interest rates led to higher prices for treasury bills and other bonds, causing investors to shift funds from the stock market to bonds, resulting in a sharp drop in stock prices. I've mentioned this to you before."

"Secondly, the large trade deficit and the decline in the dollar exchange rate have shaken people's confidence in the dollar and the stock market."

That's roughly the situation.

After listening, everyone nodded in agreement.

After listening to Wang Duoyu's connected explanation, everyone finally understood why this stock market crash occurred. To be honest, even if it hadn't happened this year, it would have definitely happened next year.

From economic globalization to the booming sales of Japanese and German goods in the United States, from the devaluation of the dollar caused by the Plaza Accord to the United States' own capital shortage problem.

There are also savings and loan associations, etc. In short, all of these things piling up together will inevitably lead to such problems.

Most importantly, even after experiencing the Great Depression of the 1930s and 40s, the stock market still did not have a circuit breaker mechanism.

This is what caused the stock market crash to be so severe and unstoppable.

But then, someone as brilliant as David Rudd spoke out, informing the world that the market might be closed!

This directly exacerbated market panic, leading to an even more severe stock market crash.

Do you still have any questions?

Although his gaze was directed at Zheng Baoyin, Wang Duoyu added the word "they" when he asked the question, meaning that it was directed at all of them.

Everyone shook their heads in unison, indicating that they understood.

Wang Duoyu basically chewed the food and fed it to everyone. Is there anything else you don't understand?
Now that everyone has no more questions, the next step is to discuss how to use this $23 billion.

Wang Duoyu already had a general idea of ​​how to use the money, which was quite a lot.

"The overall strategy is to buy oil, buy US stocks at bargain prices, and invest domestically."

After a pause, Wang Duoyu continued:

"There's no need to ask about investing in oil. We'll invest all 10 billion US dollars. This time, we can approach Saudi Arabia and Alaska and get them to offer lower prices."

"We've discussed buying the dip in US stocks before, but this time it's a little different."

"The US dollar will continue to depreciate over the next period of time, so we need to short it."

what?
Everyone was stunned when they heard Wang Duoyu's words.

Will the US dollar depreciate?
It's worth noting that since the Louvre Accord, the US dollar has indeed depreciated against currencies like the mark and the yen, but the depreciation has leveled off.

After all, it's November now, not February.

So what exactly caused the dollar to depreciate?

Wang Duoyu didn't explain further, because he had already made himself perfectly clear.

Moreover, the stock market crash has already occurred, and the next step is for the dollar to depreciate.

After the global stock market crash, global capital's distrust of the US dollar and US stocks will reach its peak for some time.

As more and more people sell off their dollar assets and US Treasury bonds, the depreciation of the dollar will naturally become inevitable.

In the original timeline, even though Soros suffered heavy losses due to the stock market crash, with the Quantum Fund's net assets falling by more than 20% below the stop-loss threshold, not long after the crash...

Soros seized the opportunity to short the dollar, so the Quantum Fund still achieved a 14% profit by the end of 1987. In other words, Soros not only recovered the 26.8% loss from the previous stock market crash by shorting the dollar, but also made a 14% profit.

This means that the Quantum Fund earned at least 40.8 percent of its net assets.

If it hadn't lost that 26.8%, the Quantum Fund would have been even more impressive during this stock market crash and dollar devaluation.

Of course, everyone has different focuses, so it's normal to have both losses and profits.

Dalio didn't pay attention to the depreciation of the dollar after the stock market crash, or rather, it wasn't that he didn't pay attention, but by the time he noticed the dollar's depreciation, he had already missed the opportunity.

After all, opportunities are fleeting and won't wait for anyone.

Just like the S&P 500 futures contracts that Soros sold before, even when the price dropped to 200 points, no one was willing to buy them.

However, after Soros sold those 5000 S&P 500 futures contracts, the index immediately rose to 245 points.

This is the opportunity, this is the market!
As for why we should invest in oil, we need to look not only to the Saudi Empire, but also to Alaska.

The reason is quite simple: it's about the trade surplus and deficit.

Global crude oil prices are roughly the same.

It's actually closer to transport crude oil from Alaska to China.

Most importantly, it can replace the US dollars that Want Want Group earns from the United States.

This year, Walsin Technology launched the Alienware computer priced at $399, a computer with very high revenue and profit.

Brands like Pandora, Yuma, and Yuebu had already made a lot of profit, and all of that money eventually ended up in China.

If the US is serious about this, they might actually be able to find it.

When that time really comes, the US might very well turn its financial scythe towards China.

But if the trade surplus is simply offset, then it goes without saying that the Americans will make money, and those greedy capitalists won't be able to wield their sickles.

"Shorting the US dollar can be done with leverage or by adding to the position."

After a pause, Wang Duoyu continued:

"In addition, in November, you will gradually begin to buy up companies such as Coca-Cola, ExxonMobil, AT&T, and Cargill."

"Focusing on the energy and food sectors, and primarily on technology companies like IBM and Apple, with smaller, primarily financial investments."

Zheng Baoyin, Lee Evra, Hela O'Brien, and others nodded repeatedly upon hearing this.

At this moment, Wang Jianchao suddenly spoke up and asked:
"Uncle Jiu, can my personal financial investment company also simply engage in such financial investments?"

Upon hearing this, the study immediately fell silent.

Everyone stared at Wang Jianchao in disbelief. How could he possibly ask such a shameless question?

"Jianchao, are you asking for trouble?" Wang Meili glared at him angrily.

Others might not feel comfortable reprimanding Wang Jianchao, but Wang Meili certainly wouldn't be.

Even though Wang Meili's position within the Want Want Group is not as high as Wang Jianchao's, she is Wang Jianchao's aunt and an elder, so it's perfectly acceptable for her to reprimand him.

Wei Ruola, Li Efra, O'Brien, and others did not have as much experience as Wang Jianchao, so they were not suitable to speak.

Before Wang Jianchao could speak, Wang Meihe frowned and said:

"Jianchao, you're going too far. Ninth Brother is talking about the deployment of our Want Want Group, and he's definitely prioritizing the Group's interests."

"If your personal matters cause damage to the group's interests, you cannot bear that responsibility!"

Wang Duoyu slowly shook his head and said:

"Jianchao, did you hear that? You've angered everyone. Without Want Want Group, could your investment company have developed?"

"If it weren't for Pandora's skin, you would probably have been swallowed up by Wall Street long ago."

"You must always put the group's interests first. Otherwise, even if you don't want to leave, I will have to remove you from the Want Want Group. Do you understand?"

If Wang Jianchao's own financial investment company develops, for example, it may already have assets of several hundred million or even more than one billion US dollars.

At that point, Wang Jianchao's own ambitions might be ignited, and he might even start his own business.

Of course, given Zheng Baoqiang's negative example, Wang Jianchao might not dare to start his own business.

In addition, he had become accustomed to following in his uncle's footsteps and dominating the financial market. If he went independent, he might not be able to make as much money as he does now.

So when he heard his ninth uncle's words, he immediately shrank back, sincerely apologized, and expressed his determination.

"Don't worry, Uncle Jiu, I know my limits. I definitely won't do anything reckless."

Wang Duoyu's expression softened slightly, and he nodded, saying:
"Of course I know, otherwise I wouldn't have let you invest some money during this stock market crash."

In fact, allowing Wang Jianchao and other members of the management team to invest with their own personal savings has both advantages and disadvantages.

Their willingness to invest demonstrates their extreme trust in the strategies devised by Wang Duoyu.

The profits from their investments are their own discretionary spending, which is essentially a form of reward.

But human greed, which inflates their appetites, is not a good thing.

Or perhaps in the future, Wang Duoyu's strategy will encounter unexpected problems, easily causing the existing management system to fall apart.

In short, it's a double-edged sword. If used well, it's fine, but if used poorly, it can be a disaster.

Upon hearing this, everyone nodded repeatedly, their faces showing gratitude.

"Okay, that's roughly it for the direction of buying the dip in US stocks. Next, let's discuss investing in the domestic market."

Hearing Wang Duoyu's words, O'Brien and the others became even quieter.

At this point, it was Wen Shixuan, the head of Hongxing Steel Plant, Xue Lisheng, the head of Babus Watch Factory, Qiao Hanliang, the head of Motong Toy Factory, and Yu Kexue, the head of Huaxin Technology, who expressed their opinions.

Lee Efra and his colleagues are not very familiar with the situation in China, and are not suitable to express their opinions on this matter.

Wen Shixuan, Xue Lisheng, and Yu Kexue often stayed in China and were more familiar with the situation there.

After they finished speaking, Wang Duoyu nodded slowly, pondered for a moment, and then said:
"I have here a document showing the sales and profits of factories in various industries across the country last year. Please pass it around and review it. After you've seen it, please share your thoughts."

The data is not very comprehensive; it only contains information about sales and profits, and it's not exactly confidential information.

Everyone curiously took the materials and passed them around for a look.

Yu Kexue received a list concerning the manufacturing of building materials and other non-metallic minerals.

The top-ranked plant is Jilin Carbon Plant, with sales of 280 million RMB and profits of 135 million RMB.

Then there's the Luoyang Glass Factory, with sales of 254 million RMB and profits of 93 million RMB.

Continuing down the list, there are also Jidong Cement Plant, Xiangxiang Cement Plant, Jingcheng Glass River Cement Plant, Shanghai Refractory Materials Plant, Guangdong Glass Factory, Second Grinding Wheel Plant, Tianjin Building Components Company, Nanjing Electric Porcelain General Factory, and so on.

These companies produce graphite electrodes, carbon fiber products, glass products, cement, refractory materials, and new materials.

Yu Kexue finished reading it in just a glance.

Judging from the names of these factories, it's easy to see that these products might not be suitable for Want Want Group.

Zheng Baoyin, however, received the list of companies in the machinery industry, with the top-ranked company being Diaopai, a subsidiary of Harbin Institute of Technology.

Next came the machinery factory under Harbin Institute of Technology, followed by the First Tractor Manufacturing Plant, whose sales reached 970 million RMB, but its profit was only 120 million RMB.

The companies ranked lower include Shanghai Bicycle Factory, Xi'an Electric Machinery Manufacturing Company, Beijing Internal Combustion Engine Factory, Luoyang Bearing Factory, Bingcheng Boiler Factory, Wuyang Bicycle Industry Company, and so on.

It's easy to see from these names that the industry mainly produces machinery, tractors, bearings, bicycles, and the like.

Xue Lisheng received a list of pharmaceutical companies, including North China Pharmaceutical Factory, Guangzhou Baiyunshan Group, Xinhua Pharmaceutical Factory, Northeast Pharmaceutical Factory, Shanghai Fourth Pharmaceutical Factory, and so on.

Wen Shixuan, on the other hand, received a list of companies in the chemical fiber industry. The top-ranked company was Shanghai Petrochemical Plant, with sales of 4.35 billion RMB and profits of 1.18 billion RMB.

"Wow, Professor, the sales figures for this Shanghai Petrochemical Plant are actually that high?"

When Wen Shixuan exclaimed in surprise, Wang Meili, who was standing next to him, curled her lips and said:
"Shanghai Petrochemical General Plant only has 4.3 billion RMB, while Yanshan Petrochemical Company already has 4.89 billion RMB."

hiss!
Everyone in the study gasped in shock.

Among the people present, upon hearing the name "petrochemical plant," they could roughly guess that it was a company related to oil.

There is no doubt that oil is expensive.

However, the combined sales of the two petrochemical plants in Beijing and Shanghai are close to 10 billion RMB, which is an annual revenue, and that's still very impressive.

Wang Duoyu smiled and said:

"Petrochemical plants mainly produce gasoline, diesel, aviation kerosene, ethylene, propylene, polyethylene, polyester, and other products, so it's normal for them to have high sales volumes."

Of course, Shanghai Petrochemical Plant and Yanshan Petrochemical Company have different focuses, since the former belongs to the chemical fiber industry, while the latter belongs to the chemical industry.

"Brother, since we've invested so much in oil, shouldn't we also start a petrochemical company?"

At this moment, Wang Meili suddenly asked.

Wen Shixuan immediately echoed:

"Yes, Professor, although our Hongxing Steel Plant can purchase petroleum-related products at low prices from Shenyang Chemical Plant, Dandong Chemical Fiber Industry Company, Jilin Chemical Industry Company, etc., we are always at the mercy of others. It's still not as convenient as producing them ourselves."

When it comes to matters of profit, Wen Shixuan is very proactive.

Ever since he joined Want Want Group, Wang Duoyu has been dangling big promises in his face, telling him not to think about profits, but to focus more on technological innovation, patents, and the like.

Achieving a balance between income and expenditure would be ideal, but it's okay if it's not, but when it comes to technology patents, the standards absolutely cannot be lowered.

As a result, Wen Shixuan became even more obsessed with profits.

Now that he seems to have a chance, he certainly won't let it go.

If the newly established petrochemical plant could be located under the Hongxing Steel Plant, then the steel plant might be able to break even.

Zheng Baoyin, Wang Jianchao, Li Efra, and others watched the spectacle with smiles, remaining silent.

Everyone present knew what Wen Shixuan was pursuing.

The Alienware computer launched by Walsin Technology this year has generated explosive revenue and profits, further stimulating Wen Shih-hsuan.

"Old Wen, you still can't let go of this obsession!"

Wang Duoyu smiled slightly, pondered for a moment, and said:

"Alright, in that case, let's set up a petrochemical plant. You'll have to manage this company well. Whether your Red Star Group can ensure technological innovation while also making money depends on you."

Wen Shixuan's pupils dilated in shock, and he asked again in disbelief:
"Professor, is what you're saying true? The newly opened petrochemical plant is really located below the Hongxing Steel Plant?"

At this point, he still hadn't realized that it was the Red Star Group, not the Red Star Steel Plant.

On the contrary, it was Wang Jianchao and Zheng Baoyin who realized what was happening.

Is Want Want Group going to establish a new group company?

Or does this mean that Red Star Group wants to be on equal footing with Want Want Group?
"Uncle Jiu, is Red Star Group's business mainly steel mills and chemical plants? Will they continue to expand?"

Upon hearing this, everyone turned to look at Wang Duoyu.

The atmosphere in the study was a little off.

People had many ideas.

Wang Duoyu first looked at Wen Shixuan and nodded, then looked at Wang Jianchao and said:
"That's right, next year will be the year of restructuring for Want Want Group, and our business will be re-expanded."

"You are all veterans of the group, but whether you can seize this opportunity depends on yourselves."

"Hongxing Steel Plant will be the first enterprise to undergo restructuring. After the restructuring, Hongxing Group will become independent, and I will discuss the shareholding structure with you in detail later."

As the Want Want Group gradually expands, it is certainly not suitable to continue in such a muddled manner. If we do not start splitting it up now, future management will easily become chaotic.

They earned nearly 20 billion US dollars the year before last, and another 23 billion US dollars this year.

This is definitely an extremely large company.

Sinopec and PetroChina, the two major oil companies, have not yet been established, and the domestic petrochemical industry is still in a primitive stage of development.

The petrochemical industry is very profitable, but that's not the point.

What Wang Duoyu wanted wasn't money, but rather the rapid development of China's automotive and aviation industries over the next ten or twenty years, and the possibility of relatively low domestic oil prices.

Low oil prices allow the automotive industry to develop more rapidly.

He only wanted to do his bit.

After its establishment, Hongxing Group will continue to focus on technological innovation, while also developing related industrial products such as steel and chemicals.

After Wang Duoyu finished speaking, Wen Shixuan was already extremely excited.

"Old Wen, don't get agitated. As I've said before, technological innovation has always been the top priority for your Red Star Group. If you fail to meet the goals I've set, don't blame me for being ruthless."

Faced with Wang Duoyu's warning, Wen Shixuan said very seriously:
"Professor, please rest assured, I will definitely complete the mission and will not let you down!"

Wang Duoyu nodded with satisfaction, "I hope you will not forget your original aspiration and will keep your words in mind today."

After saying that, he looked at everyone and asked, "Has everyone finished reading? Do you have any thoughts?"

Initially, no one had much of an idea about investing in the domestic market.

Wen Shixuan, Xue Lisheng, and Qiao Hanliang did offer some suggestions, but since Wang Duoyu didn't comment and instead presented the materials directly, he must be dissatisfied.

"Uncle, how about we set up a power plant? I see that the sales of power plants here are quite good, and the demand for electricity in Northeast China is very high."

Zheng Baoyin offered his suggestion.

At this moment, he was holding a list of companies involved in the production and supply of electricity, steam, and hot water.

The top-ranked company was none other than Bingcheng Power Plant, which led the pack with sales of 5.75 billion RMB.

why?
This company is located in Harbin, which is currently the city with the highest economy among all cities in China.

Companies like Diaopai, Guanghui Lithography Machine Factory, Want Want Group, as well as foreign companies such as Toshiba and Motorola, all have a very strong demand for electricity.

Even though Harbin Institute of Technology has its own Huajiang Power Company, it still cannot supply the electricity needs of companies like Diaopai.

Take Huaxing chip factory as an example; this company's electricity demand is absolutely the highest in the world.

Unfortunately, the power consumption of a single lithography machine is enormous, and given the annual power generation of the power plants under Huajiang Power Company, it is naturally insufficient.

Huajiang Power Company was not on the list that Zheng Baoyin had.

Even the Hancheng Power Plant, which ranks last on the list, has sales of 140 million RMB. Where would Huajiang Power Company's power plants get such high sales figures?

Wang Duoyu pondered for a moment, then shook his head and said:
"Forget about the power plant. The Songliao Canal project is already underway. Once it's completed, our Northeast will have significantly more clean energy power."

"If we were to build a power plant now, we could indeed make some money, but it would cause enormous environmental pollution, which isn't worthwhile, and I don't want to make that money."

In Northeast China, power plants are almost exclusively thermal power plants.

At this point in time, there are more hydroelectric power plants in the south, while in the north, 90% are thermal power plants.

There is no way around it.

Everyone nodded after hearing this.

Lee Efra looked down at the list, and it seemed there were no industries left to choose from.

The list includes many industries, such as plastic products, metal products, transportation equipment manufacturing, electrical machinery and equipment manufacturing, electronic and communication equipment manufacturing, instrument and other measuring instruments manufacturing, cultural and sports goods manufacturing, and arts and crafts manufacturing.

Taking the arts and crafts manufacturing industry as an example, this industry includes the manufacture of handicrafts such as metalwork, lacquerware, floral paintings, bamboo, rattan, palm, grass, drawnwork, and embroidery, as well as carpets, jewelry, and so on.

Pandora, for example, has already invested in handicrafts such as embroidery and brocade, as well as luxury goods such as Huizhou ink, gilding, filigree inlay, and hammered iron, all of which are related to the handicraft manufacturing industry.

In addition, there is the transportation equipment manufacturing industry, which brings us to the acquisition of Mercedes-Benz, BMW, and Audi.

The process is still ongoing, and it is impossible to determine exactly when the acquisition will be completed.

On the other hand, there is the electronics and communications equipment manufacturing industry. This industry requires a lot of investment, but the most crucial element is technology.

In this field, Harbin Institute of Technology is the king, and Wang Duoyu is a professor at Harbin Institute of Technology.

If we were to propose doing this, we really wouldn't be able to compete with Harbin Institute of Technology.

Even the Alienware computers developed by Huaxin Technology itself rely heavily on technologies from Harbin Institute of Technology; Huaxin Technology itself doesn't possess much technology.

It could even be said that Walsin Technology doesn't actually possess the technology; it's only because of Wang Duoyu's connections that Want Want Group was able to acquire the relevant technology and reduce production costs.

Therefore, investing in the domestic market is really not a good recommendation. While there seem to be many industries to choose from, in reality, very few are truly suitable. (End of Chapter)