Return to Hong Kong Island for a Century

Chapter 347 Letter of Intent (Second Update)

"Yes, that's true. You can check out foreign variety shows," Li Song said.

"Mr. Li, was the beautiful woman who accompanied you on your private jet last time your girlfriend?" a reporter asked again.

"If you say so, then so be it," Li Song replied with a chuckle.

"Mr. Li, I heard that BMW is holding a dealer conference. When will BMW cars be available for sale in Hong Kong? Will the price be lower than similar products?"

"Yes, BMW cars have a great advantage over other imported cars. BMW cars are produced in Guangzhou, and as a company based in Hong Kong, Parkson will give back to the people of Hong Kong."

What kind of models is BMW planning to launch this time?

"BMW has already started mass production of several models of vans with 1.2L and 1.5L engines. In addition, the 1.5L sedan has also begun trial production. Furthermore, the 2.0L sedan will also be mass-produced this year. Most importantly, the road sports car will also be mass-produced this year," Li Song said.

"Mr. Li, why did Parkson Company locate its factory in the mainland?" a reporter asked, the voice sounding Taiwanese.

"Hehe, this reporter shouldn't ask such obviously biased questions in the future, or I'll become biased against you too," Li Song chuckled.

"As you can see, I, Li Song, am a writer, and of course, a businessman."

“Hong Kong Island does not have a super-large automotive machinery industry. BMW has hundreds of supporting factories in the mainland, which cannot be achieved in Hong Kong Island. Electricity and industrial water alone cannot meet the needs. The mainland has specially planned a power plant for BMW.”

"In addition, Parkson is building two large factories in Kwai Tsing, Hong Kong Island, as well as my personal Wonderful Magazine, whose monthly publications bring business to the printing plants, and staff from Phoenix TV."

"In addition, Parkson is preparing to establish a logistics company and build a port."

"Parkson is a responsible company, thank you everyone." Li Song finished speaking and prepared to leave.

The bodyguards and airport security personnel quickly separated the reporters.

Li Song brought the guests from the mainland and London to the hotel, where Anjie Security had already inspected the hotel rooms in advance.

“Mr. Li!” Witt and Martin from the Bedooch Company were extremely polite to Li Song.

The two were nothing more than servants; if their master wanted the Star Shine airliner to make money, then he had to reach an agreement with Li Song.

"What are your requests?" Li Song asked.

"Mr. Li, is Baisheng Company willing to sell the exclusive sales rights for the Star Shine aircraft in Europe and America as a package deal?" Witt asked.

“Of course, but there are some other terms and conditions,” Li Song said.

"What terms?"

"The first is the deposit system, which is just about one million US dollars."

"Secondly, if we fail to sell a single aircraft for two consecutive years, we will unconditionally revoke the exclusive license, the deposit will not be refunded, and I can grant the license to all regions except mainland China," Li Song said.

“Mr. Li, isn’t the second condition somewhat unacceptable?” Witt asked.

"Hehe, if you haven't sold a single plane in two years, is there any point in your company existing?" Li Song chuckled.

Witt and his companion agreed with Li Song's reasoning, but since they couldn't make the decision themselves, they said, "We will pass this condition on to the board of directors. So, Mr. Li, what about the price?"

"The Star Shine aircraft that our company provides to you is at least 25% cheaper than similar models in the basic version; customized versions are not included," Li Song said. The profit margin on aircraft varies depending on the model; for standard models, it's around 10-20%, while for wide-body aircraft, due to higher R&D costs, it's generally around 10%.

Of course, if a large number of orders are received at once, the aircraft manufacturer and the supply chain will have bargaining power, and the profit margin will increase significantly.

Compared to other passenger aircraft, if the Starliner is priced the same as other aircraft of the same type, the profit margin would exceed 50%. This is due to two main reasons: firstly, there are almost no research and development expenses, and secondly, there are the costs associated with manufacturing in mainland China.

Of course, customized products will have higher profit margins.

The proportion of R&D expenses varies depending on the aircraft model; the higher the sales volume, the lower the proportion of R&D expenses.

When Witt and his companion heard Li Song's words, they breathed a sigh of relief, because before they came, their master had demanded 20%.

"Of course, as orders increase, prices will decrease."

"Moreover, I personally believe that since private jets are a symbol of status, price wars are not the only way. We can use another approach, such as replacing the engine for free or upgrading the interior for free."

“These things are all negotiable. You want to make money, and we want to make money too,” Li Song said.

“Okay, Mr. Li, you are very sincere. Shall we sign a letter of intent?” Witt didn’t expect the talks to go so smoothly.

“Of course.” Li Song nodded, and then asked Tian Jiahui and Witt to jointly draft a letter of intent.

The reason it's only a letter of intent is because Witt's company was established in a hurry, and there are some detailed terms involved, since it involves aircraft business.

Witt never expected that Li Song would bring up the aircraft business of all countries outside mainland China.

In this way, Li Song ended up working for Bedoochi.

Of course, Witt also knew that it would be difficult to open up the European and American markets for small jet airliners by relying solely on Baisheng Company.

Of course, doing this can open up the market, but you'll only earn a meager living.

After the letter of intent is signed, Bedouin will send someone to discuss the specific terms with Baisheng as soon as possible, and then sign an exclusive licensing agreement.

Because aircraft also involve after-sales service, maintenance, and Rolls-Royce engines.

"In addition, this is a design proposal for a small passenger plane, which I intend to present to Her Majesty the Queen!" Li Song said with a smile, taking out a file folder.

There's a design drawing of the Starliner inside!
The lower half of the plane is royal blue, and the upper half is white.

One side of the plane features a unicorn, outlined in gold lines, while the other side has a crown.

"It's so beautiful!" Witt was surprised that Li Song would actually bring out something like this!
Thank you for your feedback.

"I designed this myself!" Li Song said shamelessly.

The interior also features a large area of ​​royal blue!
Mainly chairs, and tables and the like!
The ground is still red!
This combination of blue and red looks more sophisticated than blue and white!
"Thank you, Mr. Li!"

“I will give this design to His Majesty!” Witt knew perfectly well why Li Song wanted to do this.

Witt thought it was normal, because which luxury brand wouldn't want Her Majesty the Queen's approval!

(End of this chapter)