It’s time to open on Friday, May 28th.
Today is the opening day of 'Cheung Kong Industries' Tsuen Wan factory, and Lin Zhichao came to the site early to organize.
Looking from a distance, a one-story factory building covering an area of 30,000 square feet stands in the desolate Tsuen Wan. Not far away are rows of wooden dormitories one after another.
At the door of the factory, there is a truck parked, which is used by Cheung Kong Industries to transport goods; there is also a bridge truck parked at the door of the factory, which is Lin Zhichao's car, mainly used for his transportation from Tsim Sha Tsui to Tsuen Wan, and Reception of guests and management official duties.
"Boss, all six automatic zipper machines are running and can produce more than 3,000 zippers (15,000 pieces) every day." Wang Liang happily reported.
After installing three new automatic zipper machines, Cheung Kong Industrial moved all its factories in Sai Wan to Tsuen Wan, and it was finally completed before the auspicious day. At the same time, production has not been affected.
Lin Zhichao said with a smile: "Then we don't have enough orders at the moment!"
Although he said this, he was not in a hurry at all.
Because in the past six months, Yangtze River Industries has been in a state of being too late to produce. Even if three more machines are added, orders will be filled within three months.
Wang Liang said confidently: "We have notified all agents and buyers, and they are very happy with our new purchase of machines. You know, they can't wait for it!"
"Ha ha"
Everyone laughed.
Who doesn’t want to make a little more money? After all, everyone had to use handmade zipper products before, but now they probably don’t need it for the time being.
Entering the factory, Lin Zhichao immediately said happily: "The area of the factory has increased six times at once, which makes it very comfortable to look at."
Li Gaofu said cateringly: "Although there are still a lot of vacant spaces, we believe that they will be filled soon."
A group of executives chimed in, saying this was not flattery, but a vision for the company. As a manager, if you don’t want your future to be bigger, you will naturally want your company to grow bigger and bigger.
At this time, Cheung Kong Industries already had 120 workers and more than 30 employees, totaling 150 employees.
Since it is a modern factory with high added value, it also falls into the category of medium-sized factories in Hong Kong. If calculated in terms of economic benefits, I am afraid it can already rival some large factories.
Automatic zipper machines will be added in the future, but they will no longer be so profitable. Maybe six machines will not make as much profit as the current three machines. This is due to competitive pressure.
In the morning, many guests came to visit Cheung Kong Holdings, not only to give Lin Zhichao face, but also to be curious about Cheung Kong Industries' factory in Tsuen Wan.
Jian Dongpu also came to inspect in person. After all, he was very concerned about the development of Yangtze River Industrial. It was not just about the 900,000 loan, but Yangtze River Industrial was supported by the Bank of East Asia. Whether it was reputation or Yangtze River Industrial's future feedback to the Bank of East Asia, it would be is very important.
As a banker, I naturally like to talk about data: "Does adding three machines mean doubling profits?"
Lin Zhichao immediately smiled bitterly and said: "Mr. Jian, how can this be a good thing! First, our orders are not full yet, it will take about two or three months; second, if not unexpected, RB should have competitors."
RB is a country with a large demand for zippers. There are many traditional handmade zipper manufacturers, including Tadao Yoshida, the founder of YKK zippers. Lin Zhichao speculated that automatic zipper machines will soon appear in RB.
Jian Dongpu immediately said: "Even so, it is a very profitable manufacturing industry, at least in the short term. If we make stable profits for a few years, we can make millions in profits."
He felt that Lin Zhichao was just one step ahead and not competitive enough. It would be good to earn a stable income for a few years.
When Lin Zhichao heard this, he wondered how this would work. He needed Jian Dongpu to have enough confidence in him, otherwise it would be difficult to get subsequent loans.
"Stability is good, but the best defense is offense. I have cooperated with a machinery factory in Germany to improve the automatic zipper machine, which can double the efficiency and have better quality. At the same time, we have also We are cooperating to develop an 'automatic slider punching machine'. Once successful, we will be equivalent to realizing all mechanized production."
Jian Dongpu was immediately shocked. He did not expect that Lin Zhichao would dare to challenge and innovate in equipment technology.
“Wouldn’t that mean we need to invest more?”
Lin Zhichao said confidently: "Not bad! These machines are expected to be developed and delivered next year, and I plan to purchase 10 improved automatic zipper machines and three slider automatic stamping machines. The funds required are between HK$1 million and HK$1.5 million. .”
When Jian Dongpu thought about it, according to the current situation of Cheung Kong Industries, it would earn more than 1.2 million Hong Kong dollars this year. This is equivalent to paying off all previous debts and needing to borrow again.
A loan of 1 million to 1.5 million Hong Kong dollars seems to be considered, after all, others can earn it back in a year.
"Yes, we at Bank of East Asia will support you in expanding your scale!"
This was what Lin Zhichao was waiting for, but he went further and said: "The money for the machine can be paid in installments! However, I also want to build a zipper factory in Singapore."
Jian Dongpu was immediately puzzled and said: "In terms of conditions, of course Hong Kong is better. Why go to Singapore? Moreover, you still have a lot of land here that has not been built."
Lin Zhichao said: "Be prepared for a rainy day! The production of zippers in multiple regions will help break down trade barriers."
Jian Dongpu suddenly felt that he couldn't understand Lin Zhichao, who always liked to think long term when doing things. But people who don't know him well can easily misunderstand him as being aggressive.
"Okay, we will discuss it in detail when we need a loan."
........
The next day, Hiroto Yokokawa, the largest agent of Cheung Kong Industries in RB, came to the factory in Tsuen Wan.
"Mr. Lin, there are already two companies in RB that use automatic zipper machines for production." After speaking, Hiroto Yokokawa was not in a hurry to continue.
Because he is testing.
At this time, the unit price of Cheung Kong Industrial's wholesale to Yokokawa Kanto was 9 cents per piece, but Yokokawa Kanto still needed to pay tax, so he could only wholesale at RB for HKD 1.3~1.5 each.
This leaves handcrafted producers with a certain amount of room for survival. Of course, Hiroto Yokokawa also made a lot of money, because he was sure that this business would be profitable and he would not worry about customers.
Lin Zhichao said with a smile: "There should be a company called YKK Zipper, and their boss is named Tadao Yoshida. As far as I know, YKK Zipper should only have one machine. So, there is no need to worry about it for the time being. Hiroto Yokokawa, look at what we have here Factory, now we have added three more machines, and we will never refuse your order again!”
Hiroto Yokokawa was immediately surprised. He had an office in RB, so he knew about the zipper industry in RB. Originally, he wanted to use RB to create competitors to lower the price of Yangtze River Industries, but it was obviously a bad start.
Next, Kanto Yokokawa inspected Yangtze River Industries.
Then he sighed and said: "Your factory management has always been very good, which is something we RB people should learn from. However, do all Hong Kong factories have such excellent management?"
Lin Zhichao smiled and shook his head and said: "Other factories are definitely not as well managed as the RB factory. Our factory is unique."
Hiroto Yokokawa nodded thoughtfully. He believed that Lin Zhichao was a Chinese who had returned from studying in Europe and the United States, so he had absorbed the management experience of European and American factories.
Yokokawa Kanren came to Hong Kong this time mainly to inspect the production capacity improvement and price reduction of Yangtze River Industrial Co., Ltd.
Of course, Lin Zhichao didn't want to offend his agent by not giving in at all.
Therefore, the price of each aluminum alloy zipper is reduced to 0.85 yuan, with a concession price of 0.05 yuan, and a one-meter zipper has a concession price of 25 cents.
At this time, Yangtze River Industrial has controlled the cost price at around 0.45~0.5 yuan, so it can make some concessions.
When Hiroto Yokokawa left, Lin Zhichao said: "Mr. Yokokawa, if you want to be in the zipper business for a long time, I'm afraid you have to keep an eye on the RB manufacturers for us, and you have to learn to make price concessions. I believe that at this time, the two RB manufacturers, They won’t start a price war with you, but you can adjust the price appropriately. In this way, your business will not be affected.”
The subtext is that you sell cheaper and don’t make it easier for your compatriots.
Originally, as a wholesaler, Hiroto Yokokawa could make a very reasonable profit even if he made 10 cents per piece; but now, he earns a full 30 to 40 cents per piece, so there is no reason to keep doing this business.
"Okay, I will consider Mr. Lin's suggestion. But I also suggest Mr. Lin to reduce costs as soon as possible, otherwise we will really lose our advantage."
"No problem, win-win cooperation!"
Without the RB market and the European and American markets, Lin Zhichao is not worried about the prospects of the zipper industry at all. Once his automatic zipper machine is improved, it will be time to open up the European and American markets.
