Rebirth Tokyo 1986

Chapter 245 Shareholders Meeting
"Hayakawa-san, the bottled water here isn't ready yet."

"Hey, I'll get it right away."

"Tamura-san, move the projector up a bit."

"Hey, I see."

At 1990 a.m. on March 3, 20, staff responsible for setting up the venue were busy at the Tokyo Prince Hotel.

Because at 2 pm, Matsumoto Manufacturing will hold its shareholders' meeting.

In order to show their seriousness about this matter, Matsumoto Production also arrived at the hotel early.

It was mainly done in the small conference room upstairs, where we conducted a simple rehearsal to avoid serious mistakes.

Several leaders of Xinghai Group were doing this for the first time and had little experience, so they could only use this stupid method.

Time soon came to noon, and in order to avoid feeling sleepy, Masato Takeshita even only ate two bananas.

What we want is to be absolutely sure.

Generally speaking, shareholders' meetings follow a fixed routine.

First, the president gave a speech, and then the president summarized the company's development last year.

However, Xinghai Group is different from ordinary Japanese companies. The chairman, who is supposed to be in a retirement position in the company, is the one who can decide everything.

Therefore, the president was replaced by the chairman, that is, Masato Takeshita himself.

"Good afternoon, fellow Matsumoto Manufacturing shareholders. I am Masato Takeshita."

As the applause gradually faded, the young man standing in the center of the stage straightened up and spoke.

"Today, I will introduce the development of Matsumoto Manufacturing to you."

"First, the company's largest pillar industry is trolley suitcases. Sales increased by 42% from the previous year to 3000 million pieces."

"Among them, the high-end brand Fengya grew by 26%, with sales exceeding 300 million pieces."

"The mid-range brand Shuying grew by 21%, with sales exceeding 600 million pieces."

"As for the low-end brand Linglong, it grew the fastest, with annual sales of nearly 2100 million units."

……

After giving a detailed introduction to sales volume, Masato Takeshita began to talk about profits, which are of most concern to shareholders.

"Last year, the company's sales of trolley suitcases exceeded 3000 billion for the first time, and gross profit also exceeded 2000 billion."

"Among them, Fengya luggage contributed the most, reaching 1600 billion."

……

After giving a detailed introduction to the suitcase industry, Masato Takeshita began to introduce the company's second business - the clothing industry.

Matsumoto Manufacturing has only recently entered this industry.

Therefore, both the income and profit are not enough, not even a fraction of the suitcase.

But those investors who plan to hold their stocks for the long term listen to this part most seriously.

Because the clothing industry represents the future of Matsumoto Manufacturing.

"In addition to luggage and clothing, the company has also made a small investment in the food industry."

"However, this part of the cost is less than 10 billion yen and can be ignored for the time being."

Although the clothing industry has not developed very well, it has brought Xinghai Investment sales of over 10 billion yen.

Food is different. Last year, it was basically given away for free and there was no sales at all.

After introducing the profitability of the company's various businesses, Masato Takeshita concluded.

"Last year, the company achieved annual sales of over 3200 billion, gross profit of 2100 billion, and actual profit of 1060 billion."

Because of Masato Takeshita's lavish spending, Matsumoto Manufacturing's profits ultimately failed to break through the $10 billion mark.

However, as early as November last year, Matsumoto Manufacturing had already been reducing its popularity, so investors did not react too much.

What everyone wants to know now is what strategic plans the company has in terms of clothing and food.

At this time, Masato Takeshita saw someone standing up and raising his hand, so he put down the manuscript and asked gently: "Sir, what can I do for you?"

The middle-aged man in a black suit and a mustache nodded.

"Yes, I really want to know what more specific plans the company has in terms of food."

Masato Takeshita confidently made an OK gesture.

"no problem."

"I will now tell you about the company's development plan for this year."

Since he had agreed to the middle-aged man's request, the young man did not start with the trolley suitcases as originally planned.

He confidently stood in the center of the stage and asked, "Does anyone in your family run a car-related business?"

"Have!"

There were sporadic voices in the conference room.

"OK, if there is, then someone should know about the new energy drink that can prevent drowsiness."

At this time, a boss who was doing logistics business shouted loudly, uncertainly.

"That drink that replenishes energy and prevents drowsiness, could it be our company's new product?"

Masato Takeshita responded affirmatively: "Yes, energy drinks are the new products that our company will launch soon."

“If nothing else, it will definitely be popular when driving or at a construction site.”

The boss who stood up agreed with this very much.

He usually likes to drink a can while driving.

He exclaimed again in admiration: "As expected of Matsumoto Manufacturing, they can actually develop such a good drink."

"Yes, yes, this drink is really effective. We taxi drivers love it."

As several shareholders who deal with driving came forward one after another, everyone began to look forward to the beverages made by Matsumoto.

Although the shareholders present unanimously believed that the decline in Matsumoto Manufacturing was only temporary, it would be a good thing if it could rise as soon as possible.

That’s right, Matsumoto Manufacturing’s shareholders all thought that the drop in stock price was a temporary adjustment.

Soon, the company's stock price will soar again.

In fact, not only them, but even the top leaders of the Ministry of Finance and the Bank of Japan think so.

Everyone agreed that the drop in stock prices was just a temporary adjustment.

As Japan develops, the Topix will soon recover and continue to rise.

This can be clearly seen from the white papers on the Japanese economy in 1990 released by the Ministry of Finance and the Bank of Japan.

In the entire white paper, the stock market is not the focus at all and is easily mentioned in a few words.

In the economic world, people are more concerned about the consumer market and real estate.

The general perception of the entire society is that stock prices have risen so much.

A slight drop now will only successfully squeeze out the bubble.

Especially with another wave of stock market rebound in March, this view has become more popular.

Have they never thought that the stock market's rebound is a deliberate growth created by big capital as a way to escape better?

It can only be said that Japan's experience in dealing with economic crises is indeed very insufficient.

But this is normal.

Before the 80s, Japan implemented a planned economic system.

Every company must have its own main bank and can only obtain loans through the main bank.

Then the Ministry of Finance and the Bank of Japan developed the economy by controlling banks.

This main bank economic model is also known as window guidance.

Under this model, Japan successfully overcame the oil crisis in the 70s by significantly lowering and raising interest rates in the short term.

You have to know that during the oil crisis in the 70s, Japan was the country hardest hit.

If Kakuei Tanaka had not condemned Israel despite pressure from the United States, the country might even have gone bankrupt.

Since a large-scale interest rate cut or increase in the short term can promote economic growth.

Japan naturally believes that this tactic still works now.

Unfortunately, times have changed.

In the 80s, Japan began the so-called liberalization reform, and window guidance under the main bank system had lost its meaning.

The money that large Japanese companies get from market financing is far more than the money they get from banks. The stock market is no longer as solid as it was in the 70s, but is instead a situation where one foot steps on the other and the other falls on the ground.

At this time, the interest rate suddenly increased significantly, and companies were unable to raise money in the market, and operational risks emerged one after another.

This phenomenon is particularly serious in the financial industry, where many financial companies are facing bankruptcy risks.

Of course, financial companies can still have a little party because of the strong real estate market.

But soon, as the Ministry of Finance and the Bank of Japan take action on real estate, a chain reaction will occur in the market.

It can only be said that the long-term planned economic development system has led to insufficient understanding of the free economic model among Japan's top leaders.

What they failed to realize is that the biggest impact is the stock market problem.

If Japan can suppress real estate while maintaining the stability of the stock market.

Japan would never have experienced the bleak situation that followed.

Consumption quickly turned from inflation to deflation, and residents' consumption capacity was seriously sluggish.

Even if bank interest rates fall to negative numbers, people will no longer invest.

The recognition from several shareholders has strengthened the confidence of investors.

Some people even thought about buying some Matsumoto Manufacturing stocks after returning home.

Once the new beverage becomes a huge success, the share price of Matsumoto Manufacturing will not only recover, but will probably also increase by a certain amount.

Then, wouldn’t it be possible to make back the losses in other companies?

If young people knew that some investors had such thoughts, they would definitely be in tears and laughter.

All I can say is that stock investors all over the world have experienced the situation of buying at the bottom but ending up on the mountainside.

But Matsumoto Manufacturing is actually not that bad. Even if the stock price falls, it will only fall to one-third of its peak market value at most.
When it comes to the ability to defraud money, the future bald eagle is still more powerful.

During a financial crisis, a bank's stock price can fall below $1.

It made those guys who bought at the bottom at $40, $30, and $20 suffer.

stunned.

Who would have thought that the stock price of a world-renowned giant bank could fall so terribly.

Of course, if you are not levered, then all is well.

Because the stocks of such companies will soon return to normal levels.

After talking about the domestic situation, Masato Takeshita began to introduce the development situation abroad.

"The company's joint venture luggage factory in Shanghai has produced 1250 million pieces of Linglong suitcases this year."

"It is expected that this number will expand to 1500 million next year."

"This will help the company further increase its market share in the low-end market."

Matsumoto Manufacturing's market share in the mid-to-high-end market is too high, and it is difficult to maintain the status quo.

That’s why Masato Takeshita didn’t talk about this because people don’t like it.

"In addition, the company's wholly-owned luggage factory in Thailand is almost completed, and the annual production capacity has the potential to reach 300 million pieces."

It is not appropriate to place all low-end production lines in Shanghai.

Especially since the market for this part of suitcases is in Southeast Asia, it is naturally more convenient to produce them nearby.

Speaking of which, the young man had forgotten about this Southeast Asian factory until he visited Matsumoto Manufacturing a few days ago.

He had always thought that all of the company's production increases this year would take place in China.

I didn’t expect that there was also a part in Southeast Asia.

However, the production line in Southeast Asia can only expand to 500 million pieces at most, which is far less than the joint venture factory in Shanghai and can only be regarded as a supplement to the Shanghai luggage factory.

The shareholders' meeting went very smoothly without any accidents.

Masato Takeshita had thought that someone would be held accountable for the decline in stock value.

Unexpectedly, everyone was more concerned about the company's future development and basically did not mention this part.

I don’t know whether to praise the shareholders for their foresight or scold them for being confused.

At this time, those who are simply buying and selling stocks naturally don’t care.

Because even if the loss is heavy, it's just a small loss of money.

Those who use borrowed money to leverage stock trading are completely different. It is easy for them to stand still in time.

At the cocktail party after the shareholders' meeting, Masato Takeshita walked up to his good friend Ichiro Haneda.

"I didn't expect everyone to be so kind and no one criticized me."

"What do you mean by verbal criticism?"

Ichiro Haneda didn't understand his junior and frowned as he thought.

"Well, didn't the company's stock price fall?"

Although the stock price rebounded in March, Matsumoto Manufacturing's stock price has fallen by 3% compared to its peak.

If it were a shareholder meeting in the United States, investors would have already cursed.

"It's just a market adjustment, so naturally people don't care."

"Besides, the ones that are falling are caused by bubbles."

Ichiro Haneda also firmly believes in the mainstream view in society.

It is a good thing for the stock market to squeeze out bubbles, which is conducive to the improvement of the company's own business.

All I can say is that it is very difficult for people to break away from the perspective of the times.

Anyone can be a wise man after the event.

There is only a small probability that someone will be able to be a Zhuge Liang before things happen, or even when things happen.

"Um, so you left the stock market?"

"That is required."

Ichiro Haneda stroked his hair.

"I always keep an eye on news related to Xinghai Investment."

"When I learned that you were withdrawing, I immediately sold my stocks as well."

At the end, Ichiro Haneda said with a slightly regretful tone.

"Unfortunately, it's a bit too early."

"If you sell it in December, you can make more money."

Masato Takeshita smiled, hit his chest and said, "Just be content."

“If you don’t sell it, be careful that you won’t be able to sell it in the end.”

"Impossible, I sold real estate stocks at the beginning."

Ichiro Haneda was very pleased with himself and secretly praised himself for his stock selection skills.

"Haha, real estate stocks are the main targets of the Ministry of Finance and the Bank of Japan."

"The housing law has been introduced, and it will be finished sooner or later."

Japan's housing tax will be implemented this year.

On the one hand, it is to increase government revenue, and on the other hand, it is also an opportunity to suppress real estate projects.

However, this policy has both advantages and disadvantages.

The good thing is that the suppression was successful, and Japan has never seen such exaggerated housing prices again.

At the same time, fiscal revenue was also increased.

The downside is that housing abandonment is even more serious in Japan's rural areas, small cities and remote suburbs.

Because if you want to inherit these houses, you not only have to pay inheritance tax, but also property tax every year.

For workers living in big cities, it is not cost-effective.

"Hehe, that's right, so I only regret it a little."

Ichiro Haneda didn't care about his friend's teasing at all and happily picked up a glass of beer.

"Well, let's get down to business. The stock market is changing rapidly right now, so don't enter it for the next few years."

"Don't worry, I know."

Ichiro Haneda is very smart and certainly wouldn't be stupid enough to enter during a turbulent period.

(End of this chapter)