Return to 1958 and build a century-old giant

Chapter 814 Ho Kwok-yuen and the Development of the Mainland Supply Chain

Wang Zhiqun was very efficient; by the third day, He Guoyuan's information was on Yang Wendong's desk.
Born in mainland China, he and his family moved to Hong Kong in 1962. He graduated from the Department of Electronic Engineering at National Cheng Kung University in Taiwan in 1974. His first job was as a product manager at Control Data Computer Company. After four months, he was promoted to product manager computer engineer. Later, he moved to Philips and became the manufacturing director. In 1976, he became the general manager of Wang's Electronics Company and quickly led the company to rapid development.
"This experience is indeed not something that ordinary people can have," Yang Wendong smiled.
It's rare to find someone in their twenties who becomes the manufacturing manager of Philips in Hong Kong and then the general manager of another company. Li Ka-shing was one such person. However, the latter might be even stronger, since Li didn't have much formal education, while Ho Kwok-yuen was at least a university graduate.

Wang Zhiqun said, "Yes, this person's experience is indeed impressive. It's a waste of his talent to work in a small company like Wang's Electronics."

“He is skilled in hardware management, which is exactly the kind of talent we urgently need.” Yang Wendong thought for a moment and said, “Let’s arrange for us to meet with this He Guoyuan together.”

Wang Zhiqun asked in surprise, "Mr. Yang, do you need to meet him in person?"

Given Yang Wendong's current status, it would be unlikely that even a typical Hong Kong tycoon would want to meet him. The fact that he personally met with someone he was applying for a job shows just how much importance he placed on the matter.

Yang Wendong said, "Yes, I'd also like to see what this person's views are on the electronics industry. Which position in our company do you think would be suitable for him?"

He naturally wanted to meet and talk with the Chinese man who would one day build the world's largest graphics card company from scratch.
Although he himself may not be making graphics cards in the future, no matter what, there is a lack of talent skilled in both hardware and management, and He Guoyuan can fill that gap in his company.

Wang Zhiqun thought for a moment and said, "I looked at He Guoyuan's experience, and he is actually not very good at hardware technology development. In this respect, he is far inferior to the engineers in Silicon Valley."
However, he excels at integrating and managing hardware resources, and is very capable in quality control and technical management. I think he could hold a position in our company's quality department, and I would feel more at ease having him control the quality of our products.

Yang Wendong said: "That's not necessarily true. Our quality is for the end product, while He Guoyuan was good at controlling the parts. These two things are different."

I do agree with placing him in the quality department, but I think a position responsible for the quality of supplier parts would be more suitable for him.

And don't forget, our future plan is to gradually shift the assembly business. While there will still be quality control, the selection of components will be even more important.

He Guoyuan's previous job involved making various electronic components, which is different from final assembly.

Wang Zhiqun said, "That makes sense, but this position is no ordinary one. Are you really going to trust a stranger like that?"

Yang Wendong laughed and said, "I wouldn't say I trust them. We have very strong supervision, and we also have people working with the suppliers. What I care more about is whether they can guarantee that our quality will not have any problems. Right now, overseas orders for all our products are soaring, and quality is my biggest concern."
We can invest money to control the quality on our own end, but there's a lot we can't influence with the suppliers. Therefore, I urgently need a capable person to manage everything.

Changxing Group has always maintained a zero-tolerance policy towards corruption and has consistently maintained a high-pressure approach.

However, this alone is not always effective. For example, the Ming Dynasty serves as a precedent. Therefore, in order to uncover some problems, the anti-corruption department at the headquarters of Changxing Group would proactively contact some employees of suppliers, offer them benefits, and investigate whether there were any special connections between the suppliers and the company's senior management.
This severed the profit chain between most suppliers and the main company.

Of course, there is some flexibility here. They won't mind things like treating someone to a meal, giving small gifts, or holiday presents, as long as it's not a huge transfer of benefits.

“Okay, then I’ll arrange for a headhunter to contact him right away.” Wang Zhiqun said, “I think we shouldn’t contact him proactively, otherwise it could easily lead to misunderstandings.”

“Sure, let the headhunters make a little money.” Yang Wendong didn’t mind. Indeed, it was unacceptable for their company to actively poach talent, especially since Wang Zhiqun’s personal invitation was rather grand.

A few days later, Ho Kwok-yuen received a call from a headhunter, who said that a large Hong Kong electronics company was looking for a senior position and inquired about his interest.

He was doing quite well at Wang's Electronics, but the salary figure quoted by the headhunter was a bit too high, so he was tempted. Anyway, it was just a try; if he succeeded, great, but if not, it didn't matter.

Immediately afterwards, he had an interview with a headhunter. Everything went according to procedure. After the headhunter submitted his information to Changxing Group, Wang Zhiqun deliberately held back for a few days before giving feedback that he could come for an interview.

It was only then that He Guoyuan realized that the company he was going to work for was Changxing Group. Then, following the procedure, he went through multiple interviews and finally passed Wang Zhiqun's final interview.
"Welcome to Glory Electronics, Mr. He." Wang Zhiqun also highly values ​​the talent his boss regards.

He Guoyuan also shook hands, saying, "Thank you for your support, Mr. Wang."

Wang Zhiqun continued, "Mr. He, your position is very important. Mr. Yang also wants to meet you and hear your opinion on some things."

"Yang Sheng wants to see me?" He Guoyuan was taken aback.
Yang Wendong was the head of Hong Kong's No. 1 conglomerate, a global self-made super legend.

He guessed that in his future important position at Changxing Group, he might have the opportunity to meet Yang Wendong. But he thought it would only be a chance meeting, and he might not even have a chance to speak with him. He never expected that he would be able to have a personal conversation with Yang Wendong before even starting work.

Wang Zhiqun smiled and said, "Yes, get ready. Come to the company at 1 PM tomorrow, and I'll take you there."

“Okay, thank you, Mr. Wang,” He Guoyuan said happily.

The next afternoon, Wang Zhiqun led He Guoyuan to an office on the top floor of the Kang Le Building;

"Mr. He, welcome to Glory Group." After Wang Zhiqun's introduction, Yang Wendong smiled and shook hands.

He Guoyuan was immediately flattered and quickly shook hands, saying, "Mr. Yang, I have long admired your name. It is a great honor to meet you today."

"Haha, come, sit down." Yang Wendong smiled and pointed to a seat: "Let's skip the formalities and get down to business. Mr. He, what do you think of Hong Kong's electronics industry today?" He Guoyuan was obviously prepared and replied: "Hong Kong's electronics industry is developing very well at present. The export volume of various calculators, electronic watches, radios and other products is very large."
"The existence of Glory Electronics is a benchmark in Hong Kong's electronics industry. Your arcade games, game consoles, and various home appliances have all developed very rapidly, driving the development of Hong Kong's electronics industry. Even my current company, Wong's Electronics, has grown thanks to the Glory Group."

“Hmm, that’s well said, but don’t you think that many electronics industries in Hong Kong rely on the Glory Group?” Yang Wendong countered.

He Guoyuan said, "This is normal. Hong Kong is just a city after all. It is enough that it can produce a giant like Glory."

"Neighboring Taiwan doesn't have a company like that yet. Their supply chain developed entirely thanks to RCA's TV factory in Taoyuan City. Even in Japan, a major Asian power with a population of 100 million, there are fewer than ten top-tier electronics companies. In terms of proportion, one company in Hong Kong would be enough."

“What you say is not wrong.” Yang Wendong smiled and then asked, “So how do you view the impact of Hong Kong’s current real estate market on industry?”

He Guoyuan was silent for a moment before replying: "The impact is huge. Real estate and the stock market are the gathering places of wealth. Too many people get rich through them. Many people's achievements in one year may exceed the hard work of many factories in ten years."

Taking Europe and the United States as examples, after World War II, Europe and the United States also developed their finance and real estate industries, which led to the transfer of many industries to Japan. Now Japan seems to be in a similar situation, with many industries starting to move to Southeast Asia. Hong Kong is also a beneficiary of this wave of relocation.
Judging from the trend, Hong Kong may follow the same path in the future, but I don't know how many years it will take.

Although on the surface Hong Kong's total manufacturing output is still rising, its proportion is declining compared to real estate and finance, and it is also declining compared to other Asian countries, which is a dangerous sign.
However, the electronics industry is quite unique. Its profit margins are much higher than those of the textile or toy industries, making it potentially a viable long-term foothold in Hong Kong.

"Yes, that's a very good analysis. You have a great eye for things, seeing so far ahead," Yang Wendong praised.

Hong Kong's manufacturing industry is still booming in this era, but in reality, hidden dangers already exist. On the one hand, real estate and finance are vying for funds, and on the other hand, there is competition from Taiwan, South Korea, Singapore, Malaysia, and other countries.

However, due to the rapid development of the global market, even though Hong Kong's market share has declined, its total amount has still increased in the short term. The main reason for this is the existence of Cheung Hing Group.
He Guoyuan asked cautiously, "Mr. Yang, as long as Changxing Group exists, the manufacturing industry in Hong Kong will inevitably develop very well."

"Haha, you overestimate Changxing Group. Given the development trend of real estate and finance, even Changxing Group can't withstand it," Yang Wendong said, shaking his head.

In the future, even top American companies like the Big Three automakers, General Electric, and Boeing will not be able to withstand the deindustrialization of the United States.
In terms of financial deindustrialization, Hong Kong is actually faster than the United States, as most of its industries are low-end.

Once the low-end industry is gone, Changxing Group will inevitably be unable to support itself.

Historically, by 85, Hong Kong's manufacturing industry had entered a downward trend, and then it completely collapsed in just a few years.

Although it seems like it's still six or seven years away, for a large enterprise like Changxing Group, it's necessary to prepare much earlier. After all, small businesses can relocate directly to the mainland, but the relocation of so many large factories like Changxing Group will inevitably require much earlier planning.

He Guoyuan remained silent; he was somewhat skeptical.
Yang Wendong added, "But that's a long time from now. I'm telling you this now just to prepare you mentally."

I'm telling you this because your job involves preliminary planning for the future relocation of the group's factory.

"Mr. Yang, what do you mean?" He Guoyuan was a little puzzled. Wasn't his job to control the quality of suppliers in Hong Kong or overseas?

Yang Wendong said, "You should know about the Reform and Opening-up Project next door, right?"

"I understand." He Guoyuan immediately realized: "Is Mr. Yang planning to move the factory to the inland? Isn't that too risky?"

The mainland has indeed announced reforms and opening up, but everyone is still watching and waiting, and some small businesses dare not invest there casually.

Yang Wendong smiled and said, "Don't worry, it won't happen in the short term. As I said, you're in the preliminary preparation stage. We'll only consider the relocation once you're ready."

The relocation of factories involving tens of thousands of people is a very complicated process. The loss of employment for tens of thousands of people alone would be a very difficult problem to handle, so it needs to be done step by step.

This is why, even though Hong Kong's manufacturing industry only collapsed in the mid-to-late 80s, Yang Wendong needed to prepare much earlier. Even if he didn't relocate to the mainland, he needed to transfer production capacity to Taiwan, Singapore, Malaysia, or other places.
Otherwise, once all the small manufacturing enterprises in Hong Kong close down, the several factories of the Changxing Group with tens of thousands of employees will collapse rapidly.

He Guoyuan asked, "Then what do I need to do?"

Yang Wendong said: "First, according to the previous work, we need to control the product quality in Hong Kong, Taiwan and other regions. It's not just about control, but also about providing appropriate assistance. For example, if suppliers need funds or equipment, as long as the assessment shows that it's feasible, we can also provide appropriate assistance. As the person in charge of quality, you need to mediate these matters."
Secondly, we will use the same method to develop suppliers in mainland China, especially in Beijing, Shanghai, and Shenzhen. These two places will be the focus of our cooperation.

"Shenhai?" He Guoyuan asked after listening, "Although I haven't been to Yanjing or Shanghai, they are indeed industrial hubs in the interior, with some industrial foundation. But Shenhai City seems to have nothing at all?"

Yang Wendong said, “Shenhai City currently has nothing, but I am optimistic about its future. You can also encourage Hong Kong supplier companies to invest in Shenhai. I authorize you to provide preferential procurement policies for all companies that go there.”

Given its proximity to Hong Kong, Shenhai will undoubtedly be the largest hub for its future industrial relocation.
There's nothing there right now, so appropriate incentive policies are needed to encourage some simple businesses to relocate there first, and then gradually make it more complex.
This process may take several years. Once a portion of the industrial chain is in place, then part of the main factory can be relocated there.

Everything takes time, so he needs to start preparing and planning early.

PS: Please give me a monthly ticket
(End of this chapter)