Brilliant Years 1991

Chapter 164: Opportunity to Enter a Big Industry

When having dinner with Guo Chaoqiong in the evening, Cao Yukun mentioned Aijia Electrical Appliances again.

Guo Chaoqiong knows a lot about the ins and outs of this matter.

"Their products are actually very good. I remember something happened a few days ago and I paid special attention to it. This company has been around for nearly 20 years. It used to do maintenance, but later it started to produce its own products."

"Before, our main products were electric kettles and rice cookers, which were used by many local families. As for rice cookers, the ones made in Fuso are definitely better, but ours are cheaper, about half the price, and the quality is not bad either. Some of my colleagues said that they have been used for ten years without breaking down."

"But the previous generation is getting old, so they need to take over. A few years ago, it seems that his son took over as general manager, and then started to go public. His products are good, but in fact, they have only been sold in the local area, at most to Las Vegas, and maybe there are some in the mainland, but it is limited, so the scale is actually very small."

"In order to go public, the company took out a loan and acquired a plot of land, saying that it was going to build a new factory, office building, staff dormitory, etc. But in the end, the land was bought and listed, and even the construction company had been negotiated to build the building. But they actually started pre-selling the property internally, and the truth was revealed..."

"As for the land in Hongkong, if you want to build a building, you need to approve the building use. There are four types in total: residential, industrial, commercial and store. His family bought the land as an industrial land. If they build dormitories for workers to live in, it will of course be compliant. However, if they build dormitories and want to sell them internally, it will definitely not be compliant!"

"That's not in compliance with the regulations, so of course we have to investigate him! As a result, we found out that his family had already mortgaged their shares and borrowed money to speculate in Japanese yen, but ended up losing a lot of money. He also misappropriated the production and operation funds of the factory. In short, this factory is hopeless. It is now suspended and may be delisted next. It's over! A lot of shareholders have been cheated!"

Well... fry the Japanese yen...

In fact, the Japanese yen has collapsed two or three times in the past two years. If you speculate on the Japanese yen in the right direction, you may make a lot of money. But looking at the results, this guy obviously played in the opposite direction, so...

"What's the matter, husband? Are you interested in this company?"

"Well, do you think it's okay for me to take over?"

"I don't know about that. However, everyone thought that his business was good, but now it seems that it has been in trouble for a long time. If the production and sales were booming and the cash flow was stable, it wouldn't collapse so quickly. Besides, I heard before that no one is willing to take over. Didn't you also tell me before that the industry in Hongkong is almost dead!"

That means I don’t agree!
but……

Cao Yukun smiled and nodded, but his thoughts were racing.

I must be mentally ill to think of working in the electrical industry with low added value in Hongkong!

The components of this thing are simple, the production is not difficult, and the technology required is not high. In a relatively developed place, household necessities like this are most likely to be saturated after one round of sales. The next market is just the natural renewal and elimination caused by the continuous aging of the original appliances sold - if you are a low-end brand, it will be even worse, because when you replace it with a new one, many people will choose to buy a higher-end one. Therefore, the best way is to establish the brand in the high-end and developed market, and then go to the downstream industrial and developed areas to earn brand premiums - from this perspective, Aijia Electric Appliances has been based in the local area for many years and has rarely expanded its business outward. It should not be wronged that it will go bankrupt.

Even if there is no messing around by the next generation of successors, it will go bankrupt sooner or later!

But, it doesn’t matter!
As long as he has the production foundation and the ability to make products, it doesn’t matter if Hong Kong can’t sell well. There is still a huge market with a population of up to one billion in the mainland!

The problem is that the next twenty years will be a period when people in the mainland are beginning to get rich and need to purchase large quantities of household appliances of all sizes - air conditioners, washing machines, refrigerators, rice cookers, electric kettles, even soymilk makers, juicers, dishwashers, disinfection cabinets, and so on.

This is a good opportunity!

As long as we can take over the production capacity of this company, the equipment is ready-made, the workers are skilled, and even the products are "Hongkong famous brand products" with a good reputation and stable reputation for many years!
First, we will organize the resumption of production, sell the products inland, and then build a factory in Shenzhen...

With so much experience in the past, Cao Yukun felt that he could make a lot of money from this business even with his eyes closed!

Now in 1992, I don’t know if there is already a Joyoung Electric Appliances company. If not, my name will be Joyoung - this will be a good business for at least the next twenty years!

I just don't know if anyone will compete with me.

Judging from the information disclosed so far, the company's main creditor is HSBC. What a pity, I am a newcomer and not familiar with HSBC!

But it doesn’t matter, we get to know each other slowly!
Besides, I’m hanging out with the big brother now, so if I need help, I need help finding him!
Jin Zhijian and his CITIC Pacific are now the absolute top Chinese companies in the red sky. No matter how powerful HSBC is, it has to give it some face.

Moreover, if Jin Zhijian can't handle it, he can shamelessly ask for help from his old friend Guo Hongying who has recently become his father-in-law!
Although according to Kwok Chiu-king, her father intended to match her up with a young master from the Xu family, and he intervened halfway and slept with her eldest princess without any warning, it is hard to say whether the old man will get furious or simply be hospitalized after knowing the news - but, I am not in a bad position, and the old man may not really stop me, so there is still a chance for the father-in-law and son-in-law to get along well!
Besides, if it really doesn’t work, the worst that can happen is that I can just go directly to HSBC!
It is only a matter of time before I come to Hongkong to do business and deal with his family!
The grand retreat of British capital, which began in the late 1970s and early 1980s and has not stopped until now, has actually been operated and controlled by HSBC. For example, the acquisition of Hutchison Whampoa by Li Jiacheng and the acquisition of Wharf by Pao Yue-kong, all received his support and permission.

Even after 20 or 30 years, it is still the leading financial brand in Hongkong.

Just deal with it, the first time is strange, the second time is familiar.

There are not many opportunities like this to successfully enter a large industry, so it is worth paying a premium for it!

(End of this chapter)