On September 11, Chen Zhiwen received a notice from Zeng Zixing that he agreed to jointly build a new factory. Chen Zhiwen also arranged for a legal and business team to negotiate the details of the cooperation. This was only a small investment for 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, such as direct investment in potential suppliers, joint ventures, or wholly-owned factories in the mainland in the future, etc. etc.
Because the initial investment was not large, after three days of discussion, Chen Zhiwen and Zeng Zixin established a joint venture company at a ratio of 75%/25%, named Jinhe Clothing Co., Ltd., from Galaxy and Jinlilai respectively.
The reason why the ratio is different from what was said before is because Zeng Zixing asked Chen Zhiwen to ensure that he has a certain order in order to be on the safe side. Otherwise, without the current only source of orders, the new company's manufacturing cost will not be able to compare with that of the same company in Hong Kong. So many costs have been reduced to almost the lowest among peers. And Chen Zhiwen will naturally not be polite. If you want to be safe, I want greater benefits.
The investment of hundreds of thousands of Hong Kong dollars was actually just a joke. The main reason was because of Tsang Tsz-hing's business ability. You know, Tsang Tsz-sing entered the Hong Kong clothing industry late, so he could only choose unconventional ties to open up his business. In the end, he still 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.
Even if it fails, it doesn't matter. Clothing manufacturing is at the lowest end of the entire industry chain. No matter how big it is, it may not make much profit. Even if Jinhe fails, it can still cultivate 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 will be invested 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 earn more. It can gain a high social status. After all, in such a small industry, it visually predicts that Chen Zhiwen has no interest in competing with him for management rights, otherwise there would be no need for a joint venture with him.
It’s just that there are too many varieties in demand in supermarkets, so Jinhe Clothing can only slowly produce from less to more. The selected entrances are socks, jeans, short-sleeves, etc., which have the greatest demand in the United States. They are all cheap products, and they are completely quantity.
For others, the newly established Galaxy Trading Company is responsible for finding suitable suppliers in Hong Kong and Bay. 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 greater the labor demand, the greater the price gap relative to the domestic price in the United States.
In this way, even FedMart, which once suffered losses, 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, trust in international cooperation, and information communication costs. Now, Fedmart and the future Costco have taken this step first. , which can be regarded as gaining a certain relative advantage.
In the following days, under the leadership of professional managers, each company operated in accordance with the development and R&D directions required by Chen Zhiwen. Chen Zhiwen also spared no expense in hiring, recruiting when he needed to, spending money when he needed to, and buying equipment when he needed to. Midea is currently losing money every month, but as long as its products can be upgraded and optimized, that will be enough.
As for Red Bull, after deducting the previous endorsement fees, the US market has also begun to make profits. However, Chen Zhiwen continued to spend money and hired American sports superstars to shoot advertisements. Later, he sent the advertisements to several TV stations in the United States for advertising, and also sponsored some Spending money on sports activities can be said to be like a waterfall, but the orders received by Red Bull are also rising like a plane taking off.
Qin Zhihao directly ordered 3 state-of-the-art assembly lines in Germany, and also recruited two German engineers to work in Hong Kong. With the money in place, there is no corner that cannot be dug. Besides, it only costs about US$2,000 per person. One month, this salary is considered very good in Hong Kong, but compared to Red Bull’s profits, it is not worth mentioning at all.
In terms of real estate, Chen Zhiwen is still using leverage, some of which may no longer comply with industry rules. However, everyone knows that as long as there are no problems, he will naturally turn a blind eye. Others dare not do this because If you play too much, you will lose everything if you lose. Chen Zhiwen knows the future, so he naturally dares to bet with all his strength. After getting good profits, the investment company opened in Central bought a property in another street and opened an investment company. The company's branches are used to attract funds.
In terms of finance, the current layout in Hong Kong is only to acquire Wharf stocks. Recently, Wharf has received another share capital increase. Chen Zhiwen basically accepted the order 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 and it is not in Central, the business cannot be very good, so there are many people who are bearish on Wharf. This is why in 1978, Li Jiacheng was able to sneak attack at a low price. One of the reasons is Wharf, and most of Wharf's several financings in 1973 and 1974 were absorbed by Chen Zhiwen.
As of now, Chen Zhiwen holds 15.7% of Wharf stocks. Unlike Li Jiacheng and Pao Yugang, Chen Zhiwen is more willing to make long-term and slow sneak attacks on Wharf, and wait until he has enough time to raise his cards before taking action.
One is because I have more time. According to the original history, before 1977, Wharf's stock was very depressed. I am not in a hurry at all. The later the acquisition, the more money-attracting artifact Harbor City will be completed. It is better to leave these funding and construction issues to the people of Jardine.
The second is that if we act quickly now or the news is revealed, it will inevitably lead to a counterattack by Jardine. You must know that although it has been affected by the Hong Kong and international crises, Jardine's foundation is still very strong. Although the losses are serious, the funds in hand are still there. Quite a few, Chen Zhiwen is least willing to go head-to-head with Jardine at this time, and if he waits for another two years, Jardine's overseas projects will continue to bleed the Hong Kong head office, and the acquisition will be much easier.
After all, in the original history, when Li Ka-shing intended to acquire Wharf, Jardine was not willing to go head-to-head with Cheung Kong Holdings, which had a market value of only HK$500-600 million. Instead, it entrusted HSBC to mediate, which is enough to show that Jardine at that time was already Internal and external troubles, large body and kidney deficiency.
The third is that even if the final takeover war does break out, I will have more funds in a few years, and some of the projects currently planned will be able to obtain financial returns by then.
The current development of the 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 in the long term, plus an overseas development Supermarkets provide a certain market and market entry credentials for industrial projects, and at the same time they themselves can gain considerable 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 Chaikens, he said that he is a subordinate of Warren Buffett, and he is going to Come to Hong Kong and want to meet you."
