The Industrial Giant Reborn

On September 11th, Chen Zhiwen received a notification from Zeng Zixing that he agreed to build a joint venture to build a new factory. Chen Zhiwen also arranged a legal and commercial team to negotiate the details of the cooperation. This is just a small investment of his trading company. When Costco develops in the future In addition, if you enter the supply system of supermarkets such as Wal-Mart, Auchan, and Carrefour, you will have more layouts in this area, or direct investment in potential suppliers, or joint ventures, or wholly-owned factories in the mainland in the future, etc. etc.

Because the initial amount of investment was not large, after three days of discussion, Chen Zhiwen and Zeng Zixing established a joint venture company with a ratio of 75%/25%. The name is Jinhe Garment Co., Ltd., which comes from Galaxy and Goldlion respectively.

The reason why the ratio is different from what I said before is also because Zeng Zixing asked Chen Zhiwen to guarantee a certain order for safety. Otherwise, losing the current only source of orders, the cost of manufacturing of the new company cannot be compared with that of the same company in Hong Kong. So much cost down to almost the lowest counterparts. And Chen Zhiwen is naturally not polite, if you want to be safe, I want greater benefits.

The investment of hundreds of thousands of Hong Kong dollars was actually just for fun, mainly due to Zeng Zixing's management ability. You must know that Zeng Zixing entered the Hong Kong clothing industry late, so he could only choose a tie as a way to open up. After living for decades, if he is given enough support now, his achievements will be even higher, especially being able to enter the larger market of traditional clothing.

It’s okay even if it doesn’t succeed. Garment manufacturing is the lowest end of the entire industrial chain, and no matter how big it is, it may not be able to make much profit. Even if Jinhe fails, it can still train a lot of talents in this field. These talents may be in a few years. Going to the mainland will be of great use.

For Zeng Zixing, there is actually no loss, and the investment is not too much. How much energy he will invest in the future will definitely depend on how many orders Chen Zhiwen can bring. If it really develops, Zeng Zixing can also earn a lot, and even It can obtain a high social status. After all, for such a small industry, it can be seen that Chen Zhiwen has no interest in competing with him for management rights, otherwise there is no need for a joint venture with him.

It’s just that there are too many types of demand in supermarkets, and Jinhe clothing can only be produced slowly from less to more. The entrances we choose are socks, jeans, short sleeves, etc., which are the most in demand in the United States. They are all cheap goods. quantity.

For others, the newly established Xinghe Trading Company is responsible for finding suitable suppliers in Hong Kong and Wanwan. According to professional estimates, even if the profits of trading companies and shipping profits are included, the cost of goods in Hong Kong is still higher than that in the United States. The average price is 20% lower, especially for goods that require a large number of employees to produce. The more manpower required, the greater the price gap relative to the United States.

In this way, even Fedmart, which once lost money, can barely maintain its capital or even make a slight profit.

In fact, European and American supermarkets have already begun to purchase products from Asia, but the speed is very slow due to problems such as local relationship chains, international cooperation trust, and information communication costs. Now, fedmart and the future Costco have taken this step first. , can also be regarded as gaining a certain relative advantage.

In the following days, under the leadership of professional managers, each company is operating in accordance with the development and R\u0026D direction required by Chen Zhiwen. Chen Zhiwen also spares no expense. He recruits when he needs to recruit, spends money when he needs to spend money, and buys equipment when he needs to buy equipment. Midea is currently losing money every month, but as long as the product can be upgraded and optimized, it will be enough.

For Red Bull, after deducting the previously spent endorsement fees, the U.S. market has also begun to make a profit, but Chen Zhiwen continued to spend money, hiring American sports superstars to shoot commercials, and then sent advertisements to several American TV stations to place advertisements, and also sponsored some Sports activities, spending money can be said to be like a waterfall, but Red Bull's orders are also rising like a plane taking off.

Qin Zhihao directly ordered three state-of-the-art assembly lines in Germany, and at the same time recruited two German engineers to live in Hong Kong. Once the money is in place, there is no corner that cannot be dug. Besides, it is about 2,000 US dollars per person One month, this salary is considered very good in Hong Kong, but compared to Red Bull's profit, it is not worth mentioning at all.

In terms of real estate, Chen Zhiwen is still constantly using leverage, and some of them may no longer conform to industry rules, but everyone knows that as long as there are no problems, they will naturally turn a blind eye. Others dare not play like this because If the game is too big, if he loses, he will go bankrupt. Chen Zhiwen knows the future, so he naturally dares to bet with all his strength. After the investment company he opened in Central, after getting a good profit, he bought a property in another street, and then opened an investment company. The branch of the company is used to attract funds.

In terms of finance, the layout in Hong Kong is currently only buying shares of Wharf. Recently, Wharf has raised shares for financing. Chen Zhiwen basically accepted all the orders without causing market fluctuations. In fact, before the opening of Harbor City, Many real estate people are not optimistic about this project. They think that such a large shopping mall is not located in Central, and the business cannot be very good. Therefore, many people are pessimistic about Wharf. This is why in 1978, in later generations, Li Jiacheng was able to sneak attack at a low price. One of the reasons for Wharf, and most of Wharf's several financings in 1973 and 1974 were also absorbed by Chen Zhiwen.

As of now, Chen Zhiwen holds 15.7% of Wharf shares. Unlike Li Jiacheng and Bao Yugang, Chen Zhiwen is more willing to sneak up on Wharf for a long time, and wait until there is enough time to make a move.

One is because I have more time. According to the original history, before 1977, Wharf’s stock was in a downturn, and I was not in a hurry. The later the acquisition, the more the money-absorbing artifact of Harbor City will be completed. It is better to leave these funds and construction issues to the people of Jardine Harmony.

The second is that if we act quickly or the news is revealed, it will inevitably cause Jardine's counterattack. You must know that although it has been affected by the Hong Kong and international crises, Jardine's background is still very strong. Although the losses are serious, the funds in hand are still Quite a few, Chen Zhiwen was the last thing Chen Zhiwen wanted to confront Jardine at this time, and if he waited for another two years, Jardine's overseas projects kept bloodletting the Hong Kong head office, and the acquisition would be much easier.

After all, in the original history, when Li Ka-shing intended to acquire Wharf, Jardines was unwilling to go head-to-head with Cheung Kong, which had a market value of only 500-600 million Hong Kong dollars. Instead, it entrusted HSBC to mediate. Internal and external troubles, large body and kidney deficiency.

The third is that even if the final acquisition battle really breaks out, after a few years, you will have more funds, and some of the projects that are currently deployed will be able to get financial returns by then.

The development of the current four major businesses basically meets Chen Zhiwen's requirements. Two industries plus real estate and finance. The first two are the pillars of future business, and the latter two can provide huge funds for industrial projects for a long time, plus an overseas development The supermarket provides a certain market and a certificate for entering the market for industrial projects, and at the same time, it can also obtain a lot of benefits.

"Mr. Chen, I received a call from the United States last night." Just after work in the morning, the secretary An Qihui reported: "An American named Caikens, he said that he is Warren Buffett's subordinate, he is going to Come to Hong Kong and want to meet you."