Development of productivity started in 1981

Chapter 108 Shadow Company Establishment (Part )

On the morning of June 1982, 6, Wang Jiankun woke up in his apartment in Causeway Bay.

After purchasing this thousand-square-foot apartment yesterday, Wang Jiankun used his superpowers to quickly clean up the dust and germs in the room, then went to a nearby supermarket to buy daily necessities and moved in.

I cooked some vegetable and egg noodles in the morning, and of course milk is indispensable. It is very convenient to buy daily necessities here. You can buy fresh ones every day and store them in the refrigerator.

After breakfast, Wang Jiankun went downstairs to the public telephone booth and called Huang Kun to ask him about setting up the company.

"Mr. Huang, good morning! I am Wang Jiankun."

"Good morning, Mr. Wang, have you come to Hong Kong?"

"Yes, I arrived yesterday. I need to do something here. I want you to help me find out if there are any acquaintances or people who know the business. Are you free today?"

"I'm free. Where are you, boss? I'll send a car from the factory to pick you up."

"No, I'll drive here myself. You can wait for me at the factory."

"Okay, boss, please drive slowly. The roads in Hong Kong are crowded and narrow."

"Don't worry, wait for me for half an hour, you go ahead and do your work."

"Okay, bye boss."

After making a phone call to confirm that Huang Kun was at the Xingyao Machinery Factory, Wang Jiankun drove the Crown sedan to the Xingyao Machinery Factory in Tsuen Wan District, Kowloon.

I had always come to Hong Kong at night before, and stayed in the factory for a long time after arriving. Now, when I drove on the road in broad daylight, I found that it was indeed as Huang Kun said, there were many cars and the roads were narrow.

Wang Jiankun discovered that the buses here were all flat, tall two-deckers. This was probably because the road was too narrow and there were too many people, so they had to be made into this shape. Wang Jiankun was afraid that the bus would fall over when turning.

It took Wang Jiankun half an hour longer than he expected to reach the factory. He was not familiar with the road and there was heavy traffic, so it took him about 50 minutes to get there.

The roads in the industrial park here are wider because there are many large trucks pulling containers. There is a wharf in Tsuen Wan District and cargo ships will dock here, so in order to facilitate nearby transportation, the industrial park is set up here.

However, according to what my uncle said before, many small factories are now preparing to move production to other places. After Wang Jiankun entered the factory area, he found that many small factories were quiet and the doors were closed and locked.

Seeing this situation, Wang Jiankun felt that it would be better to place the production of some parts with high technical requirements in Hong Kong Island, such as the electronics industry that is about to develop.

Xingyao Electronics, a company based in Guangzhou that specializes in the electronics industry, recently reported that it was difficult to recruit highly educated talent, so the 5-micron chip production that Wang Jiankun had prepared for them might be difficult to carry out.

Currently, the highest level of education they can recruit is junior college graduates, and their number is very small. They are currently serving as backbones on the 10-micron chip production line.

Therefore, Wang Jiankun had previously planned to further increase the degree of automation in the production of 5-micron chips to minimize the need for manpower. Now, looking at the large factory buildings here, he feels that it would be a good idea to produce chips here.

Chips are small in size and high in value, and the proportion of transportation costs to total costs will not increase significantly as the distance increases.

It is now increasingly difficult for graduates from engineering universities here to find jobs, as a large number of factories are preparing to relocate, so the demand for engineering talents has been greatly reduced.

If Wang Jiankun sets up a chip factory here, the talent problem can be solved.

Of course, the wafers are still produced by Xingyao Electronics in Guangzhou. The production of wafers currently requires a relatively large amount of electricity, and the quality requirements for talents are not very high. As long as you have a high school degree and receive training for a period of time, you can start working.

Wang Jiankun parked his car in front of the gate of Xingyao Machinery Factory. Huang Kun was already waiting there with several ministers.

Seeing Wang Jiankun’s Crown sedan parked, he quickly walked forward and opened the door.

"Hello, Boss Wang, welcome to Xingyao Machinery to inspect our work. Thank you for your hard work."

"Hello, Mr. Huang! Let's go to the factory first. Please have someone park the car in the parking lot!"

"Okay, boss, please come this way."

"Xiao Zhang, drive the boss's car to the parking lot and be careful."

Huang Kun led Wang Jiankun into the factory while arranging for people to park the car.

"Boss, should we go sit in the conference room first or go to the production line?"

"Let's go to the production line first. I haven't been here for a long time. What I see on the report is different from what I see on site."

"Okay, then please come this way. Our factory now has more than 200 front-line employees. We can transform 1 G-500 CNC machine tools with imported second-hand machine tools every month, and can produce 1 X-200 three-axis CNC machine tools and 2 X-30 four-axis CNC machine tools with the technology you provided."

"The production capacity is still a bit low. Looking at the sales volume and pre-order situation, the production capacity needs to be increased. Be bolder. I see that many factories around are empty or stopped. You can buy or rent them and increase the production capacity for me by five times."

"Okay, boss. In my half-year summary report, I am planning to propose buying the factory buildings of several small factories in the surrounding area. The site can support a three-fold expansion of production capacity."

"Let's do it according to the plan of 5 times the production capacity. The mainland is carrying out reform and opening up, and many state-owned enterprises have the need to upgrade their equipment. Our machine tools are very competitive, so don't be too stingy."

"Okay, I'll change the plan later and ask each department to prepare according to the requirement of 5 times the production capacity."

Huang Kun led Wang Jiankun to the production line of modified machine tools. Currently, the second-hand machine tools imported here are mainly from Germany and Japan, with only three models: lathes, milling machines, and grinders.

Screening has been carried out at the place of import, so the goods transported are of similar quality. They are then disassembled in the factory, the parts are cleaned and inspected, and then some modified accessories produced by ourselves are added, and they are reassembled into CNC machine tools.

Huang Kun introduced: "Boss Wang, we currently have more than 60 people in this modification workshop, most of whom are graduates from vocational schools. They are led by several veterans. I told them that there will be an evaluation every three months, and the top five people can be transferred to the X-3 or X-5 machine tool production line. The salary and benefits will be paid according to the production line workers there. So although these people are novices, they still work very hard."

"Well, that's good. To give people motivation to move forward, our factory can learn from the mainland and establish a worker grade system. We can conduct skill assessments every six months or a year. Those who meet certain standards can be promoted to a certain level, and the salary and bonus will take the level into consideration."

"Okay, boss. I'll go back and figure out how to do it. There are a few workers here from the mainland. They should know something about it."

"You can contact Chen Xingdong later and ask him to find someone in the mainland who knows about this to explain this worker hierarchy system to you. We can take its essence and discard its dross."

After visiting the machine tool modification workshop, Wang Jiankun and others came to the production workshop of X-1 and X-2 machine tools.

Huang Kun then introduced: "Boss, the two series of machine tools here are produced according to the technical information you provided. At present, they have opened up sales in Southeast Asia, South America, Africa and other places. There are only a small amount of imports in the mainland. Because we accept US dollars for these two models, the mainland purchases very little."

"They are all sold to Africa? Which country in Africa needs such advanced machine tools?"

"Yes, South Africa, Libya, Egypt and other countries seem to have some military enterprises. It is difficult for them to buy advanced machine tools from Europe and the United States. We promote them and soon we get orders. Especially our 4-axis machine tools, which can process complex curved surfaces and many difficult-to-process workpieces. The demand for orders is very large. At present, we have received orders for 2 X-300 series machine tools."

"How about customer feedback? No customer complaints?" "No, boss. Customers are very satisfied after using them for a while. We have received the final payment for more than 100 units sold so far. With the final payment come orders. There are no customer complaints. After all, the materials we use and the production precision are very high, not worse than some machines with the same performance made in Europe and the United States."

According to Huang Kun, the steel used in the X-1 and X-2 series machine tools are all made from machine tool parts imported from abroad, especially the machine tool bases, which are reprocessed bases of old machine tools. Therefore, the internal stresses are almost eliminated, and the error is very small after assembly. They plan to increase the recycling of old machine tools, especially after my uncle recently got in touch with the Soviet Union, some of the Soviet machine tools have begun to be transported back for disassembly.

Wang Jiankun appreciated Huang Kun's approach and said, "Director Huang, in addition to expanding production capacity, we need to make our warehouse bigger and bring back as many of the unwanted items from the West as possible for reuse. There are no steel companies in Hong Kong, and transforming these old parts into new ones will be an important business for Xingyao Machinery in the future."

"Understood, Boss. I'm already arranging to rent a bigger warehouse."

After viewing the production situation, Wang Jiankun followed Huang Kun to the conference room. At this time, the department heads who had not accompanied the tour were all there, and Huang Kun introduced them to him one by one.

Since he didn't know much about them, he simply talked about the future development plan of Xingyao Machinery, so that these senior leaders would have higher expectations for the future. Then he ended the meeting and left Huang Kun alone to talk about things.

"Director Huang, I have something else I need your help with. Do you know anything about forming a group company, especially a corporate structure that can hide the company's shareholders?"

"Boss, I used to be the director of a factory that produced air-conditioning compressors for a British-owned company, so I have a general understanding of the organizational structure of British-owned companies."

"Oh, please tell me about it. I'll give it some reference."

"Okay, boss. That British-owned factory is affiliated with a British air-conditioning company. The group's headquarters is in London, but its registered address is in the British Virgin Islands. Many of its subsidiaries and grandchildren are registered in the islands. I heard the financial director mention that this way they can pay very little tax."

"anything else?"

"I thought about it and it seemed that the apparent owner of the group company was not the same person as the person in charge when I went to the meeting. Later, I talked with people from several other subsidiaries and learned that they designed the company structure and registered it in the British Virgin Islands in order to evade taxes in the UK."

"The real shareholders are hidden behind the scenes. They do not hold shares in the company on the surface, but they transfer profits to their companies in the British Virgin Islands through a series of companies. These companies can be kept confidential, so the British tax authorities cannot find them. In this way, they take huge profits every year, but pay the same taxes as ordinary workers."

"I see. These British guys are really good at this. Do you know how to build such a company structure?"

"To be honest, boss, I only know the general appearance of this structure, and I also heard a lot about it from others. I really don't know how to register it specifically. But boss, there are many law firms here that can help you register a company. They are knowledgeable and may know what to do."

"Law firm? Don't lawyers help with lawsuits and handle legal documents? Do they also do things like registering companies?"

"Well, large law firms will undertake a lot of business. Registering a company involves many legal issues, so generally, companies of a certain scale here will look for law firms, and companies will hire lawyers and accountants."

"Okay, in that case, I'll go to the law firm to find out more. You go ahead and do your work. I'll leave first."

"Don't worry, boss. I'll ask the company's legal advisor to tell you about going to the law firm, so you don't get ripped off. These lawyers are very ruthless when they see people who don't understand come to consult them about problems!"

"Okay, I'll wait here, go call him over!"

"Okay, boss. Please wait a moment. I'll call him here." Then he made a call using the phone in the conference room.

"Hello, is this Lawyer Lu? Please come to Conference Room 1 now. The boss has some questions for me."

"Okay, Mr. Huang, I'll be right there."

After waiting for a while, a woman in her 30s, wearing a blue suit, dressed exquisitely, and with short hair, walked into the meeting room.

Her eyes were bright as she looked around the conference room and said, "Boss, Director Huang, hello. Please let me know if you have any questions."

She came right up to the point and spoke so directly that Wang Jiankun, who was about to start polite conversation, was stunned.

"Please take a seat, Lawyer Lu. I want to set up a company structure that can hide the information of the real controller. I am going to find a law firm to learn more about the situation. Director Huang said that you know about the law firm, so I want to consult you."

"Good boss, the law firm will generally send lawyers of different levels to receive the client based on the strength of the client. Of course, if there is an introduction from an acquaintance, then the corresponding level of lawyer or team will be sent to receive the client based on the situation described by the acquaintance and the value of the case. If you go there personally and don't have the corresponding information, then the lawyers who receive you may be some newly hired intern lawyers."

"Well, let me tell you about the company I want to set up, and see if you can find a reliable lawyer to introduce me to."

"No problem, boss. Please go ahead."

Wang Jiankun saw her open the notebook and prepare to record, so he slowly said: "First, I plan to set up two group companies, namely Sihai Group and Xingzhou Group, with registered capital of 2 million US dollars and 2 million US dollars respectively."

"So much? This case is huge, and many big law firms will be vying to take it." Lawyer Lu was surprised when he heard so much registered capital.

"At present, this is the initial registered capital, and it will increase in the future depending on the situation."

"Okay, boss. Please tell me the structural requirements and business scope of these two group companies so that I can introduce them to my friends in the law firm first. When they are ready, I will explain the operation procedures to you."

"Si Hai Group, as the name suggests, is mainly engaged in maritime business. In the early stage, it had two businesses, namely maritime transportation, marine fisheries, and shipbuilding. Different businesses require the establishment of different subsidiaries."

"Xinzhou Group is mainly preparing to engage in telecommunications business, which will involve telecommunications equipment manufacturing, telecommunications operations, etc."

"Okay boss, is that all?"

"Also, the Xingyao Group will set up a group company for management, and will also hide me and several other individual shareholders. Currently, there is Xingyao Machinery, which is the current factory area, Xingyao Electronics in the mainland, and a mainland company called Wumei Bag Factory that has a stake in Xingyao Electronics. In the second half of the year, we also plan to enter the motorcycle industry, first making engines and other spare parts, and later on, we will make finished motorcycles."

"Boss, you are really amazing. I will sort it out for you to review. No problem. I will give the information to a friend of mine in a law firm and ask them to prepare a plan first and then discuss it with you. What do you think?"

"Okay, but I'm in a hurry. I need to finalize the plan and start taking action the day after tomorrow at the latest. I will stay in Hong Kong until the 17th at the latest."

"Okay, I will tell my friends at the law firm about this situation, and they will do their best for the employer."

"Then I'll go do my work first and come back to see you later."

"Okay, go ahead and do your work. I'll talk to Director Huang later."

After Lawyer Lu left, Wang Jiankun asked Director Huang, "Which law firm hired Lawyer Lu? Is she qualified?"

"Don't worry, boss. He was hired by Wing Shun Law Firm, one of the top three in Hong Kong. Many large companies hire lawyers from their law firm as legal advisors, so the friends in the law firm she mentioned must be very strong. And the company you want to establish has a total registered capital of tens of millions of US dollars. They will definitely do their best to help you."

"That's good. I don't know much about this. I guess I need to learn more about the legal system here."

"Boss, this legal issue is very complicated. We just need to ask professionals to do it. It's hard to understand it by ourselves."

"I have nothing to do, Director Huang, can you please help me buy some legal books so I can take a look at them first."

"Okay, boss. I'll ask someone to go to the Legal Department to get some legal books for you to read. I've flipped through them before, but there are so many and so complicated that I feel dizzy." He then called his secretary to get the books.

(End of this chapter)