A century-old wealthy family that rose from Shanghai

Chapter 235: Layout
Xiangsheng Taxi is holding a board meeting.

At the meeting, Ji Bincheng questioned Zhou Xiangsheng's proposal: "Why is Changjiang Taxi selling off 50 taxis? Chen Guangliang is incredibly shrewd. With a commanding market share, he's reducing the fleet. Is this a ploy? Also, while these taxis are cheap, they're used after all. Isn't 8500 yuan a car too much?"

His speech was supported by some shareholders.

Moreover, Ji Bincheng is also one of the major shareholders.

Zhou Xiangsheng had to take it seriously, but he was very determined, so he said:

"Ladies and gentlemen, Shanghai currently has four large taxi companies. Yinfei has fallen behind in scale, leaving Xiangsheng firmly in fourth place. Meanwhile, the two foreign-owned taxi companies, aware of the rise of Chinese-owned taxis, are gradually withdrawing from the market. We must seize this opportunity to expand our market share, so I believe that only with 180 vehicles can we secure fourth place, and then push Tailai and Yunfei down, further increasing our market share to second place."

"Regarding the price, a new car costs 10500 yuan. These cars are only a year old, so they've already discounted by about 15%, which is a huge concession from the other party. I've specifically inspected these cars, and they're in excellent condition, with no issues. At a lower price, they can't possibly sell them at a loss. If we were to buy new cars, we'd have to spend an extra 10 yuan, and we'd also waste time."

It is true that Changjiang Taxi cannot be sold at a loss. The five cars are only sold at a small profit.

Used cars are also divided by year.

A number of shareholders also switched sides, thinking that what Zhou Xiangsheng said made sense - Xiangsheng Automobile needed this batch of cars to develop its secondary business.

"Okay, let's vote!"

As a result, Zhou Xiangsheng naturally won, but he also fell out with his good friend Ji Bincheng.

This is business!

If it weren't for Ji Bincheng, Xiangsheng Taxi would be just like Yinfei, with no more than 50 vehicles.

But now, Zhou Xiangsheng feels that he founded the company, so he naturally wants to control everything.

In the second half of the month, Chen Guangliang came to the South Wharf of China Wharf for inspection, just when the Golden Beta ship was unloading.

Looking at the busy docks, Chen Guangliang had long since put aside his sympathy for the dockworkers and was more concerned with the nation's maritime industry. Ever since he had secured a position on the first and second shipping routes through clever tactics, Chen Guangliang had been determined to continue his shipping career.

Even after 1937, he could continue his shipping business using Guangzhou Bay and Hong Kong; and in 1940-1941, he would register the remaining ships in Panama, and then try to get involved in the transportation business in the United States, after all, war needed transport ships the most.

After all, there are still ten years left, and Chen Guangliang can train a group of excellent seafarers, and by then, ocean voyages will no longer require foreign senior crew members.

"We are about to restore the original price and cancel the donation agreement. What is the feedback from our customers?" Chen Guangliang asked the managers around him.

"According to the surveys sent back by various branches, our customer loyalty is relatively high, and our business after December will be less affected. In addition, after all, the current national situation is favorable to our country's own shipping companies, so we are confident that we can truly compete with Jardine Matheson and Swire." The business manager replied.

Zhao Tieyi added, "We are the first Chinese-owned shipping company to open these two routes, which is an advantage in itself. Furthermore, although we haven't been operating for a long time, our strict rules and regulations and excellent onboard management have been well-received, giving us confidence."

In order to fundamentally solve the problems of seafarers' laziness on board, Chen Guangliang also came up with some ideas, such as adding a reading room, where accountants and other literate personnel on board can explain some news; at the same time, some courses of the Maritime Academy are also held on board.

In short, Global Shipping is committed to training senior seafarers, so when recruiting, those who have studied in private schools are given priority. While these people are working, Global Shipping also provides training and cultural courses.

This involves additional financial expenditure, which other shipping companies would be reluctant to spend, but Chen Guangliang considers the long-term, so the investment is relatively large.

He doesn't care even if he earns a little less!
In fact, it makes quite a bit of money.

As management improved, business also improved, which reminded Chen Guangliang of the Pang Donglai model in his previous life.

"Well, it's good that everyone has confidence, but you must remember the truth that 'a thousand-mile dam can be breached by a plague of ants.' We must continuously improve the quality of our seafarers. I hope that one day, many of our seafarers will become senior seafarers."

"Yes, boss"

Among the first batch of seafarers of Global Shipping, there were many who were highly literate. When they came in for training, it was stated that they would be trained as senior seafarers.

The premise is that none of these people will quit midway, because for these seafarers, only food and accommodation are provided for the first year, and then they will sign a five-year seafarer contract.

After six years, you will be a free man. Whether you can persevere and become a senior seafarer (captain, first mate, second mate, third mate, engine room operator, etc.) requires both time and money.

"How much did it cost us in three months?"

"28, almost the price of a boat."

Chen Guangliang said, "That's not bad. We can make back the investment of an old ship in four years."

Zhao Tieyi immediately said, "You forgot, we've lowered the freight rates. In fact, we might be able to recoup our investment in two years. These two routes are very profitable."

It’s true, the lower shipping costs are basically profits.

If the price is restored in December, the profit will naturally increase significantly, and a two-year payback is only a conservative estimate.

This is how shipping works. When you make money, you make a lot of money. But once there is no business, you may suffer a huge loss.

For example, the two ships transporting sugarcane to Guangdong Province can be conservatively estimated to earn back the money for the two ships in more than half a year (the ships themselves were also bought cheaply), and the money for bribing Feng Rui is also deducted here.

After some inspection, Chen Guangliang decided to find an opportunity to purchase at least two more ships next year because the price of ships will continue to fall.

The first ship was sold because the business was not keeping up at that time. The next year, more ships were purchased because the business had caught up. There is no contradiction.

Then, returning to the first thing to do regarding Global Shipping, Chen Guangliang told Zhao Tieyi and other management members, "Starting next year, have the four ships on routes one and two fly the flag of Warren & Co., using their name. Keep this a low profile and don't let anyone notice anything."

Zhao Tieyi was stunned for a moment, then asked, "Then wouldn't it be a joke if we used the slogan of the rise of China Shipping?"

Chen Guangliang said solemnly, "It's temporary, so I asked you to reduce the impact. I must have a reason for doing this. At least we need to be more cautious in the next six months. So, since we are going to use someone else's sign, we need to disguise it better when the time comes."

Zhao Tieyi and others were startled. What could have made the boss decide to hang up the Warren & Co. sign? It could only be the war.

Could it be that the Japanese had just invaded the three northeastern provinces and were now preparing to launch an attack on Shanghai?
No one knew what was going on, but they immediately got busy.

Chen Guangliang sat in his office and continued to think - the war had been prepared since early January, and Chen Guangliang had always been an "anti-Japanese element", so he might be targeted.

So, he must prepare for a rainy day.

But he has no regrets!

At the end of the month, Chen Guangliang checked his Ping An Bank account and discovered it had reached 282 million yuan. A closer look at the account details revealed that 122 million yuan had been deposited by friends and family that day, 102 million yuan had recently been deposited by his four largest companies, and the remainder was recent individual savings.

The development speed is very fast!

Among his four major enterprises, Changjiang Taxi has the highest deposit of 72 yuan; this is because Changjiang Taxi recently sold 50 vehicles and obtained 42.5 yuan in cash, and it also has a profit of more than 30 yuan this year.

The second is Shangri-La Hotel, with deposits reaching over 100,000 yuan; the worst is of course Global Shipping, with deposits of only 50,000 yuan.

In terms of loans, over 20 yuan has already been lent out, with Times Pictures alone having lent 15 yuan. Chen Guangliang has recently been monitoring every loan, rejecting those involving road deeds and property mortgages in Zhabei and Hongkou. Regarding industrial and commercial businesses in those areas, the decision is based on the business owner's financial strength.

Soon, he called Xia Gaoxiang and Ye Ximing together and said, "Invest 150 million in spot gold trading."

Xia Gaoxiang immediately raised a question: "Boss, you're not lending money, but investing in spot gold. I'm afraid this isn't suitable for development."

Professional people have professional opinions.

However, Chen Guangliang explained, "The loan-to-deposit ratio is generally maintained at 40-60%, and the remaining funds are considered circulating funds. If deposited in spot gold, I believe they also possess liquidity. This is one reason. Secondly, since the UK abandoned the gold standard, other European countries have followed suit, and France and Japan may be next. Therefore, I conclude that the gold-silver exchange rate still has room to rise, perhaps within the next six months, with the increase exceeding loan interest rates and lower risk."

After hearing this, Xia Gaoxiang said, "Okay, the 150 million is mostly from your company's deposits. As long as you are involved, it must be reasonable."

The implication is that this is reasonable because these funds basically belong to Chen Guangliang.

Chen Guangliang didn't care about the hidden meaning in Xia Gaoxiang's words. After all, the two of them were standing at different angles.

Of course, if Chen Guangliang loses money speculating on gold, or if the bank loses money on its investments due to his repeated interventions, these talented individuals will leave in disappointment. On the other hand, if Chen Guangliang makes more money for the bank and leads it to greater growth, they will be willing to follow him.

Chen Guangliang is confident in speculating in gold. The current gold-silver exchange rate is around 68, essentially the highest level this year. It could reach 80 in the first half of next year, offering a profit of over 15%.

Currently, due to the banks' lack of money, loan interest rates have reached more than 12%, and may be as high as 18%, but the risks are certainly greater.

So this time he asked Ping An Bank to invest in spot gold, actually just to increase income and cope with interest and operating expenses, it was not a risk.

Then, Chen Guangliang said: "Given the current situation, we must be cautious about foreign loans. I think everyone should see the situation outside!"

By the end of November 1931, several major bonds on the Shanghai exchange had fallen to half their par value.

The securities market is closely linked to the financial market. Dramatic fluctuations in the securities market triggered panic in the financial market. Many wealthy individuals either withdrew their cash from their homes or deposited it in foreign banks. Domestic banks, seeking to protect themselves, tightened their belts in anticipation of this financial panic. Furthermore, the recent floods across the country have depressed business and stagnated the financial system, causing the amount of cash circulating in the market to steadily decrease.

So now banks outside are short of money and the financial industry is in a very bad situation.

If it weren't for Chen Guangliang's plan, it wouldn't have been so easy to attract deposits.

Xia Gaoxiang also reacted at this time and admitted: "At this moment, the risk of investing in the standard gold is indeed smaller!"

It seemed that he had been convinced by Chen Guangliang's analysis.

Finally, Chen Guangliang said: "If it is a mortgage on the concession road deed and house deed, the loan is self-guaranteed, so you can consider it."

"Okay, we got it!"

Wednesday, September 12th.

The Shangri-La Hotel's "Hotel Building" has finally opened and been put into use, which took 1 year and 8 months.

The speed is quite fast, but after all, the hotel building is only 8 stories high. The construction part was completed in May this year, and then it took another half year to renovate.

Chen Guangliang also calculated the timetable. After all, if the store opens in the first half of next year, it will be affected by the "January 28 Incident"; if it opens at the end of this year, although it will also experience this kind of incident, it is a "good sign" after all.

Although the entire hotel building has only 8 floors, the area of ​​each floor is more than 1300 square meters, with a total building area of ​​10800 square meters and a total of 168 guest rooms.

In addition, the hotel building also has public activity spaces such as the 'club' and 'library'.

On the opening day, many celebrities and wealthy businessmen came as guests and visited the Shangri-La Hotel.

In particular, the founders of the "Four Northern Banks" - Central and Southern Bank, Continental Bank, Salt Bank, and Jincheng Bank - came here to visit "blatantly" because they were preparing to build an "International Hotel".

Although the Shangri-La Hotel is not known for its height, its building area is not small at all, as it consists of an eight-story building and a four-story building, which is equivalent to a twelve-story building.

Moreover, the Shangri-La Hotel covers an area of ​​12 mu, which is larger than the Chinachem Hotel and the International Hotel behind it. It has a square of more than 4 mu where some public activities can be held.

On the opening day, Victor from the Cathay Hotel also attended. After touring the hotel, he said to Chen Guangliang with admiration: "A few years ago, I never thought that we would have such a formidable competitor today!"

Since its opening, Shangri-La Hotel has always been a strong force among Shanghai's luxury hotels, and is as famous as the Chinachem Hotel.

The increase in the number of guest rooms now also means that Shangri-La Hotel has moved to a higher level and is further catching up with Chinachem Hotel.

Chen Guangliang said modestly: "As the largest city in the Far East, Shanghai can accommodate more luxury hotels."

Victor immediately said, "You're right, but I admire your marketing even more."

“We learn more from the Chinachem Hotel”

The name "Shangri-La" is a gimmick, attracting many literati and scholars.

After chatting for a few minutes, Chen Guangliang went to entertain other guests.

After the hotel department of the Shangri-La Hotel was put into use, the annual profit had to at least double, according to Chen Guangliang's expectations - that is, it had to earn more than 40 yuan a year, so that the cost could be recovered in 1937.

It is said that the Cathay Hotel's annual profit is nearly one million oceans. I don't know whether it is true or not, but the size of the Cathay Hotel is still more than doubled.

But judging from the operating conditions of the Shangri-La Hotel this year, the hotel department on the fourth floor alone can make a profit of more than 20 yuan a year.

It was when the 918 Incident broke out that wealthy people from all over the country rushed to Shanghai, so business was good.

(End of this chapter)