"Sheng Chen, the land in Tin Shui Wai is not valuable, but the area is large enough. It is indeed difficult to determine the valuation. How about we learn from Hong Kong's most traditional cooperation model. I will provide the land, and Mr. Chen will provide the funds, and we will work together. Build Tin Shui Wai into a new town in Hong Kong. Now, the Hong Kong government also intends to transfer Hong Kong's population to other towns, and there are many new immigrants from the mainland in Tin Shui Wai. Mr. Chen can also convert your factory By moving here, we can also solve the employment problem and solve all problems in one fell swoop." Zhao Desheng said with some excitement.
"Zhao Sheng's words seem to have been perfectly conceived." Chen Zhiwen smiled and said, "But I may disappoint you. Red Bull wants to acquire Tianshuiwei, but it just wants to build a large-scale breeding farm there." It’s just a cattle farm, plus a dairy processing plant or a milk powder processing plant, but you’re right about one thing, new immigrants from the mainland can indeed find employment here.”
"Sheng Chen, in Hong Kong, the most profitable industry is always the real estate industry. How much money can we make from milk or milk powder? Why should we look far away from the near?" Zhao Desheng said.
"Of course real estate is more profitable, but it can only be done on Hong Kong Island, Tsim Sha Tsui, Hung Hom, Yuen Long or Sha Tin. But it's probably very difficult in the New Territories. Not to mention the lease period, even if it's me or other real estate businessmen or the Hong Kong government, it's really I am planning to invest in the New Territories, and it is impossible to invest in Tin Shui Wai. It is too remote. I chose there because in the whole of Hong Kong, Tin Shui Wai is the least likely to develop real estate business, and my industry requires an industrial chain and a large number of skilled workers. It is even more impossible. Move to an uninhabited place." Chen Zhiwen said calmly.
This is indeed true and there is no deception.
In the 1990s, housing prices were high, and Li Ka-shing built Kingswood Villas in Tin Shui Wai. Many Hong Kong people felt that Tin Shui Wai had some hope, so they went there to buy houses. However, they soon discovered that it was impossible to live here like Yuen Long and Sha Tin. This kind of place is still developing, even if the subway comes, it will be useless. It is too remote.
Of course, there is another reason. Li Jiacheng, who developed this place, signed a monopoly agreement with the Hong Kong government and did not allow other capital to invest. As a result, Tianshuiwei was unable to absorb other capital. However, this is only one of the external reasons. The real reason is still wanting to Building a town with recycling capabilities from scratch requires a lot of funds, and because it is far away from the bustling areas of Hong Kong, it is difficult to profit from it, unless it has its own industry and can obtain funds from the outside world to activate the regional economy.
Theoretically speaking, there are only two ways to develop Tin Shui Wai. One is that the Hong Kong government invests a lot of money, but the Hong Kong government's fiscal revenue is also limited. So many towns that have developed normally also need funds, and input and output Far better than Tin Shui Wai which has nothing.
The second is that Chen Zhiwen will move some of his core industries to Tianshuiwei, so that these industries can become the core income of local people, and then drive the development of the tertiary industry to form a cycle. In theory, it is not impossible. Similar industries like Red Bull do not need to be very complex. Chain, or some of Midea's industries, it doesn't matter if there is no local industrial chain, the nearby Shenhai City will definitely have one in the future.
But this approach is actually to use the interests of Midea or Red Bull to feed a group of local people. Unless Tianshuiwei is his own, or at least partially his, otherwise, he will not be a saint to enrich other real estate companies.
Moreover, no matter how you say it, even if you want to develop Tin Shui Wai, it will only be after the 1990s, because there will not be any development value here in the 1980s. Of course, it will not make money if it is used to raise cattle, but you cannot buy such a large land and leave it empty. Do it for more than ten years and then develop it?
It is better to turn this place into a pasture for Hong Kong, and then develop new towns in compliance with the requirements of the Hong Kong government when the time is right.
"Chen Sheng really doesn't think about it anymore?" Zhao Desheng asked.
"I heard that Zhao Sheng and Li Jiacheng are also discussing a joint venture to develop Tian Shui Wai?" Chen Zhiwen said suddenly.
"How did Chen Sheng know?" Zhao Desheng was shocked. Not many people knew about this matter, and it was also done in secret.
"Li Jiacheng is indeed very capable, but he can't change the traffic situation in Tin Shui Wai, nor can he change the fact that no one wants to go to Tin Shui Wai. If he were to run the business again, he would not be able to succeed. The essence of real estate is people, and no one wants to live in a Even if the gods come here, it is impossible to successfully develop this place." Chen Zhiwen said with a smile.
"It's indeed impossible now, but it's hard to say in the future. Does Chen Sheng think that's right?" Zhao Desheng then asked.
"I agree with this statement, but how long will the future be? Yuen Long was not very popular 20 years ago, but it was still much better than Tin Shui Wai today. It is only today that Yuen Long has begun to gain a lot of popularity and capital. , but it may take ten years to develop well, so is Mr. Zhao willing to wait another thirty years? Or, are you keeping this land now and preparing to leave it to your grandchildren for further development?" Chen Zhiwen laughed. said.
"." Zhao Desheng frowned and thought carefully about Chen Zhiwen's words.
Chen Zhiwen continued: "If you want to develop Tin Shui Wai, the most basic problem is transportation. Either the Hong Kong government will build a first-class highway to connect Tin Shui Wai and the Kowloon Peninsula. However, there are a lot of mountainous areas in the middle. The cost of building the road is very high. Conservatively it will cost ten billion, equivalent to half of the current fiscal revenue of the Hong Kong government, or building a subway, but the investment is higher. How many years do you think the Hong Kong government will do this, or do you expect Li Jiacheng to do this? "
"Chen Sheng's analysis makes sense, but the land in Tianshuiwei is an ancestral property passed down by our family for hundreds of years. If we want to sell it, the price previously quoted by Red Bull Company is not enough." Zhao Desheng hesitated for a moment and said.
Chen Zhiwen smiled and said, "Okay, you can tell me a price. As long as it's reasonable, I can agree to it."
"Actually, we don't want money, but fixed assets, not to mention in Hong Kong Island, at least in Tsim Sha Tsui or Hung Hom." Zhao Desheng thought for a while and said.
"Property? It's okay. Let's do this. I will arrange for someone to sort out the information on some of my properties or land for you. You can choose it yourself. When the time comes, there will be a specialized lawyer to communicate with you about the transaction." Chen Zhiwen thought about it. Want to say.
Although he values Hong Kong properties, apart from the core assets, such as the buildings in Central, Admiralty, Tsim Sha Tsui, Harbor City, Huangpu Plaza, ten buildings in the Huangpu business district, etc., all others are available to him at any time. The cash used in the transaction can be exchanged if appropriate.
Although Tin Shui Wai is worthless now, even if it cannot be developed into a new town in the future, it is still worthwhile to exchange a few small properties for 5 square kilometers of land in Hong Kong.
"Okay, then I'll take my leave first." Seeing that he had achieved his goal for the time being, Zhao Desheng stood up and left.
At noon, Chen Zhiwen made an appointment with Qin Zhihao, the head of Red Bull, and Xu Jinhong from Galaxy, and had a staff meal together in the canteen downstairs.
The welfare of the Galaxy Group headquarters is better than that of Midea's factories. Let's talk about the canteen. It adopts a buffet mode. All employees can eat freely, but it cannot be wasted. Once wasted or food is taken away, there will be serious consequences. punishment.
Chen Zhiwen selected a few chicken wings, bratwurst, steak, beef fried rice, and vegetable soup. This is a staff canteen after all, so there is no luxury seafood buffet. The food inside is also common food for ordinary people, and the most luxurious one is steak. , you need to pay HKD 2 separately to get it, and the others are common pork, fish, vegetables, etc.
Chen Zhiwen has always eaten delicacies from the mountains and seas. Occasionally eating some ordinary food like this is not bad.
"I think there should be no problem with Zhao Desheng. Get ready to raise cattle there, Lao Qin." Chen Zhiwen said with a smile while drinking orange juice.
Qin Zhihao asked: "Then Li Jiacheng is also discussing cooperation with the Zhao family, will there be any surprises?"
"I think Zhao Desheng has hesitated. The Zhao family has been unwilling to accept this reality. The Hong Kong government will not develop Tin Shui Wai. If I were the governor of Hong Kong, why wouldn't I invest in Yuen Long and Sha Tin? Or even anywhere in the southern part of the New Territories. It's more suitable than Tin Shui Wai. It was right to hoard land a hundred years ago, but it's a pity that it was in the wrong place." Chen Zhiwen said with a smile.
Many Chinese families began to hoard land after coming to Hong Kong a hundred years ago. Hong Kong Island and Victoria Harbor had long been controlled by British capital, so everyone chose other places. Dairy Milk International Company hoarded large amounts of land in Tsim Sha Tsui and Causeway Bay. At that time, The main purpose was to raise cattle, but in the 1970s, he became extremely wealthy, but unfortunately it was annexed by Land Land.
Zhaojiatun has the largest area of 5 square kilometers. Although it is full of swamps and ponds, it is much better than the mountains. Compared with Hong Kong's 3,000 square kilometers, this land is 0.16% of Hong Kong's. Unfortunately, the location is too remote. In the entire Hong Kong, only Chen Zhiwen, who has a large number of high-quality industrial properties, is able to activate this land. The Hong Kong government may not be able to do so. In later generations, Tin Shui Wai has always been called the slums of Hong Kong.
"But if we go there, the transportation is not very convenient." Qin Zhihao said.
Chen Zhiwen said: "The land route is not possible, but the water route is. The Star Ferry, a subsidiary of Wharf, can purchase a few freighters to deliver the goods to Tin Shui Wai. Hutchison Whampoa can open a small port there. In the future, the equipment of the dairy factory , live cattle or feed can all be entered from the port, so the efficiency is sufficient."
"That's okay. The masters in milk factories or breeding areas, and there are some here in Hong Kong, are all people who used to work for Dairy International." Qin Zhihao said, "In this case, basically there is no big problem, it's just whether they can make a profit. , it’s hard to say.”
"The funds for purchasing the land in Tianshuiwei came from Xinghe, and the land returned to Xinghe. The subsequent money for leveling the land also came from Xinghe. It does not count towards your investment, but it can be given to you for free. Don't touch the real estate, and do your own thing with peace of mind. That’s it.” Chen Zhiwen said again.
Our own companies, Red Bull and Midea, have specialized directions. For example, Red Bull can make all kinds of beverages, foods, and even grains, but not others. You can just use your own advantages to develop various industries, especially real estate. Industry, once involved, you may look down on industry.
The same is true for Midea, because in the early stages of development, the profits of these industrial companies are really not as good as real estate. Midea's arcades are almost a global monopoly, and their profits in one year may not be as valuable as two buildings in Hong Kong. But in the long run, , Industrial companies can develop exponentially if they develop well, while Hong Kong real estate companies can basically only be king in the lake when they reach the level of land.
"I don't know much about real estate. I just need Xu Sheng to operate it." Qin Zhihao said with a smile: "If this is the case, then there should be no big problem. We will just wait for the Zhao family to sell the land."
Chen Zhiwen continued: "Then how to compete with Dairy Farm International, which is now owned by Land, have you thought about it?"
"This is actually not difficult." Qin Zhihao said: "After Land acquired Milk International, it was mainly for the land of the milk company, not the milk business. In the past few years, their service capabilities have become worse and worse, and many people have resigned. , has caused dissatisfaction among many Hong Kong citizens. As long as we seize this opportunity, we will definitely be able to replace it, unless Hongkong Land comes back to its senses and invests money to compete with us."
"Okay, you don't have to worry about this. If Land invests money, I will follow suit." Chen Zhiwen said with a smile.
"Actually, if it weren't for the poor relationship between us and the Jardine Department, I would have gone directly to the door and proposed to acquire the milk business of the milk company." Qin Zhihao said with an embarrassed smile.
"The competition is the same. As long as we are strong enough and they are smart enough, they will give up." Chen Zhiwen said with a smile.
In the process of competition or acquisition with capital from various parties in Hong Kong, Chen Zhiwen also has an absolute advantage, that is, he knows the future. He knows that the price of what he is doing now or the company he wants to acquire will be very high in the future, so he is very willing to invest. , but opponents don’t know that they need to calculate various current gains and losses as well as the uncertain future, so it is easy to give up when the chance of winning is not very big, even if the funds of both parties are similar.
In other words, it's like fighting, whoever is not afraid of death is more likely to win.
"Hong Kong's fresh milk business, at its peak, was worth hundreds of millions a year, and the profits were considerable, but obviously not as good as real estate." Qin Zhihao said.
"Have you never thought about doing overseas business? The Hong Kong market is limited after all?" Chen Zhiwen asked. In Hong Kong, except for real estate, finance and some export industries, if you want to make big money, you really have to monopolize a market segment, otherwise you can only Said he could support himself.
Qin Zhihao thought for a while and said: "Businesses like fresh milk are basically available in developed countries. Countries that are too poor have no market. Only those economies that are developing are more suitable. If you want to expand outward, Wanwan is a good place." Choice, their economy is that of ours 10 years ago, they have many children, and there is no big local breeding industry.”
"That's okay. I'll go take a look when I have a chance in the future." Chen Zhiwen nodded and said, raising cattle is naturally an excuse. It is true to hoard land. The future land price in Wanwan will not be cheap. When the Asian economy takes off, Wanwan will The growth rate of housing prices in major Bay Area cities is only slightly worse than that in Hong Kong.
Of course, he has no interest in going to Wanwan to engage in real estate, but if he can make a fortune just by selling it or demolishing it, he will still be happy to participate.
In this way, we can not only develop the dairy industry, but also obtain enough funds in the future to further expand to other regions. In this way, it is also good for the dairy company to be independent.
"Okay." Qin Zhihao said.
"By the way, have you chosen a name for your dairy company?" Chen Zhiwen asked again casually.
"Not yet. Our internal staff are still discussing what the name should be. The current candidate name is Hong Kong Dairy Group. What do Chen Sheng think?" Qin Zhihao asked.
"No, don't use the name of the place, otherwise you won't be able to internationalize it in the future." Chen Zhiwen thought for a while and said, "I'll give it a name, let's call it Yili, Yili Dairy, which is more catchy."
"Yili? Well, that's the name." Qin Zhihao nodded and said. The boss has already spoken, so it can only be this name, and there is nothing wrong with the name itself.
PS: During the May Day holiday, I am even busier than at work. I will update today. Please vote for me at the beginning of this month. Thank you for your support.
(End of chapter)
