A century-old wealthy family that rose from Shanghai

In the past year (1976), Cheung Kong Industrial Group generated profits exceeding HK$1 billion, with a gross output value of just over HK$9 billion. This accounted for approximately 12% of Hong Kong's total output value of HK$73 billion. Moreover, Cheung Kong Industrial Group's profits were already very high, given that its added value was much higher than that of other factories in Hong Kong.

In mid-January, Chen Guangliang began inspecting the four major groups under the Cheung Kong Industrial Group and will give some instructions for the future.

The Hong Kong Chan family has five major conglomerates: Cheung Kong Holdings, Universal Group, Cheung Kong Industries, Ping An Financial Group, and Times Holdings. Among them, Cheung Kong, Ping An, and Times are all listed companies or have listed subsidiaries.

Only the Yangtze River Industrial Group and the Global Group have been quietly making a fortune, and they are the two most profitable companies among the five groups, with a precipitous lead.

Global Group's annual profit is around HK$13 billion, while Cheung Kong Industrial Group's profit has exceeded HK$10 billion; Cheung Kong Holdings' annual profit is only HK$3 million, Ping An Bank's annual profit is just over HK$1.2 million, Ping An Investment is not included, and Times Group's profit is even less, around HK$5000 million.

so.

If Universal Group's "downsizing" involves acquiring Wharf Holdings and investing in Manhattan office buildings and Tokyo commercial properties;
The "landing" of Cheung Kong Industrial Group involves investing in the technology industry, as well as in "game IPs" and "comic IPs," and of course, they also plan to purchase a commercial building.

Storing IP addresses is merely an "insurance measure" for the Yangtze River Industrial Group, but not a "core measure."

The core strategy of the Cheung Kong Industrial Group is to invest in the technology industry, continuously cultivating technology talent and industries for Hong Kong. In 1972 alone, the Hong Kong Polytechnic became the Hong Kong Polytechnic University, 20 years ahead of its predecessor. During this period, Hong Kong naturally nurtured countless technology talents.

Furthermore, the performance of Cheung Kong Industrial Group has prevented Hong Kong people from saying that "investing in real estate is a sure way to make money, while investing in high technology is a sure way to lose money." Over the years, Cheung Kong Industrial Group has accumulated countless patents, and its R&D products have had a global impact, all of which serve as a strong incentive.

Tsuen Wan, Sun Fung Textile Group.

The Rolls-Royce convoy drove into the Xinfeng Textile Group's industrial park. After getting out of the car, Chen Guangliang looked around, but he was pondering a question.

Today, Tsuen Wan has become Hong Kong's largest new town, and it is indeed a waste for the Sun Fung Textile Group to occupy 100 million square feet of land.

Textile factories and garment factories are all moving to areas with 'cheap labor'. So, the Sun Fung Textile Group's industrial park in Tsuen Wan, Hong Kong, also had to move to the mainland in the 1980s, and the land was used to build a large housing estate.

Of course, some of the garment factory's operations will remain in Hong Kong and can be relocated to Tin Shui Wai, where Chan Kwong Leung plans to develop a large community.

In his previous life, Li Jiacheng developed Tin Shui Wai, which lacked industry and supporting working environment, making it a very oppressive place. In this life, some of Cheung Kong Industrial Group's businesses may later invest in an 'industrial zone' in Tin Shui Wai.

At the factory, Chen Guangliang listened to the work introductions from Chen Wenkai, Lin Jianyun, and others.

Unbeknownst to many, Xinfeng Textile Group has become a global textile and garment group with its own factories in Hong Kong, Singapore, Malaysia, Thailand, Nigeria, South Africa, Italy, Brazil and other regions. It has also formed a large group with strong R&D capabilities, global division of labor and large-scale production in more than 20 countries around the world.

"Let's go check on the progress of the fleece fabric!"

"Boss, please."

Stepping into the R&D center building, you'll find Hong Kong's most capable fabric R&D center. From the earliest fabrics designed to meet the requirements of various countries, to denim, high-grade polyester, and more, Sin Fung Textile Group has always been at the world's top level.

Of course, it is undeniable that Hsin Feng Textile Group has always been in a state of 'imitation', at most keeping up with the pace, but never taking the lead.

But now, a significant opportunity has clearly arrived!

"Mr. Chen, this is our fleece fabric. Its greatest advantages are its thickness, excellent warmth retention, soft texture, and outstanding abrasion resistance and anti-pilling properties. Under the same conditions, its cold-keeping performance is twice that of wool and four times that of cotton. Moreover, it is easy to care for and can be machine washed directly," Chief R&D Engineer He Zhitai introduced vividly.

Lin Jianyun, standing to the side, said regretfully, "It's a pity we missed a winter, but that's good, we have plenty of time to prepare for our big splash this year."

After carefully examining the fleece in his hand and confirming that this was the fabric he wanted, Chen Guangliang asked, "How do you plan to promote our fleece products?"

Lin Jianyun immediately said, "We plan to launch fleece clothing this winter (1977) through Crocodile's sales network in Asia. Of course, we have also registered the patent, and we can make a lot of money by relying on the patent in the future."

After some thought, Chen Guangliang said, "The sales network of Lacoste alone isn't enough. Therefore, we need to expand Uniqlo's stores in Japan, South Korea, and Southeast Asia, developing a 'fast fashion + casual wear' model, especially in the Japanese market. Actually, you need to understand that Uniqlo is the most suitable brand for overseas expansion; Lacoste is secondary. The so-called fast fashion + casual wear model is..."

Executives at Uniqlo's corporate division took notes, feeling as if struck by lightning. The so-called "fast fashion" involves recruiting young designers to quickly extract new styles from fashion shows and magazines in Europe and America, and then redesigning them; each new style is produced in limited quantities, and once sold out, it is basically no longer produced.

Chen Guangliang continued, "The Uniqlo clothing model is the mainstream of the future and it is easier to build a global brand. Of course, we still have a long way to go."

Yes, Mr. Lin.

Then, Chen Guangliang said, "Now that we have such excellent products as fleece, we should naturally make good use of them. Fleece jackets are a must, but we can also develop 'outdoor sports apparel,' for example, by creating a 'three-layer clothing method,' namely, an inner layer for moisture wicking, a middle layer for warmth, and an outer layer for wind protection. This method not only helps athletes keep their bodies dry, stabilize their body temperature, and resist wind and cold, but also simplifies clothing choices. Everyone should carefully study my proposal!"

"Yes"

In this situation, everyone just needs to listen carefully to Chen Guangliang's ideas and then figure out how to implement them.

At Xinfeng Textile Group, Chen Guangliang put forward many new ideas, laying a solid foundation for the future. Fleece products, in particular, could bring huge profits to Xinfeng Textile Group, potentially increasing them by several times – this is the power of patented products.

The second stop was Huatai Group.

In addition to manufacturing toys for European and American clients (mainly for Mattel, manufacturing Barbie, My Little Pony, Transformers, and Cabbage Drop), Huatai Group also produces its own toys and owns assets such as Kidswant Retail and Comic World Publishing.

Over the past year, Huatai Toys' peripheral products for "Fist of the North Star," "City Hunter," and "Mobile Suit Gundam" have begun to show initial results; among them, the revenue from figurines is increasing day by day, which is an exciting thing.

In addition, Huatai Group has established an animation department and merged the original Manke World Publishing House into it; the animation business is currently in the development stage, and it is investing in training relevant talents.

Toys and animation are the best related industries, and developing them in tandem is the best choice.

Besides Fist of the North Star, City Hunter, and Mobile Suit Gundam, Huatai Group also produces other excellent comics, though perhaps not as dazzling as these three. However, Chen Guangliang believes that even more brilliant comics will emerge sooner or later, as the Hong Kong comics industry has already flourished.

Of course, Chen Guangliang also gave Chen Wenkai a comic book, which was expected to start serialization in 1979. That was "Dragon Ball". Both of these and "Mobile Suit Gundam" were important IPs, but the former was more valuable.

"Which production line is the busiest right now?" Chen Guangliang asked Su Dongsheng in the factory.

Su Dongsheng, already sixty years old, spoke with unusual ease, saying, "Naturally, it's Cabbage Baby. Its orders are increasing too fast. Based on the current monthly orders, it is expected to exceed 1.2 million US dollars this year (1977)." This estimate startled everyone.

Only Chen Guangliang was familiar with the popularity of cabbage dolls in the United States. In just eight months last year (1976), sales exceeded US$4 million, and it is not impossible for sales to exceed US$8 million this year.

This is even more terrifying than the first year's sales of sildenafil tablets.

Of course, the popularity of cabbage dolls may only last for another year. Even if the popularity continues, it will mainly be for related services, since people can't just 'adopt' and then abandon them.

Chen Guangliang nodded and then asked, "What percentage of our toy production lines are currently manufactured by third parties?"

Huatai Toys manufactures a large share of toys for Europe and America. When production takes place in Hong Kong, Huatai Toys also outsources some production processes to other companies or family producers in Hong Kong.

At this point, the person in charge of production stepped forward and said, "About 30% of the production is handled by third parties. But for things like the cabbage doll, because the order was so urgent, it even reached 50%. Her hair and clothes were basically all produced by third parties. Our Huatai Group has 1.8 workers, but there are about 1.5 workers involved in related processes."

When this was mentioned, everyone present became proud.

The Huatai Group directly and indirectly supports more than 30,000 Hong Kong people.

There's another crucial point here: Mattel Group offered Wah Tai Group a very reasonable price for manufacturing its toys; and Wah Tai Group's workers were among the best paid in Hong Kong's manufacturing industry, plus they received excellent benefits.

Of course, outsourcing production to third parties was initially primarily for housewives living in public housing. These housewives had difficulty finding work and also had young children to care for. You could say that Huatai Toys was their savior. They were relatively free in the production of wigs, doll clothes, and other items for Huatai Toys, allowing them to take care of their children and earn money at the same time. There are still several thousand such housewives today; they are busy when there is work and rest when there isn't.

In addition, Huatai Toys also outsources some production processes to other factories, which supports hundreds of small and medium-sized factories.

Therefore, the influence of the Chan family in Hong Kong has permeated every aspect of life.

Later, a member of management also said: "Mr. Chan, Mr. Chan, the labor force in Hong Kong is now much larger than that in Taiwan, Singapore and South Korea. Our Wah Tai Group is a major employer. If we consider relocating some factories to places with lower labor costs, we can save some costs."

Upon hearing this, Su Dongsheng and the others were stunned. When they looked at the management team, they realized that they were newcomers and immediately broke out in a cold sweat.

If the boss wants to save on labor costs, he won't pay the group's workers the high wages they would receive in Hong Kong. Although there is third-party production, this is also due to various considerations, such as providing a livelihood for housewives and a job for Hong Kong workers.

Chen Guangliang glanced at the thirty-year-old young manager, who must have been newly joined. Although he didn't quite like the idea, he still had that much magnanimity.

He laughed and said, "What you said makes sense! But if we move overseas, those aren't our compatriots, so why should we take care of their lives?"

Everyone burst into laughter, trying to cover up their earlier embarrassment!

The manager who proposed the idea also changed his expression. He wanted to say, "Wouldn't Huatai be able to save costs?" But he also realized that the atmosphere wasn't like that, so he stopped himself in time.

Then Chen Guangliang said, "The situation on the mainland is developing in a positive direction. I think that in terms of labor costs, the future is not about going overseas, but about staying on the mainland. One possibility is that a large influx of mainland immigrants into Hong Kong will save on Hong Kong's labor costs. Another possibility is that if the situation changes, I will go to the mainland to investigate and we will try to relocate our factory there so that our compatriots can also have a better job."

It's better to save money for your own compatriots than to save it overseas.

Building factories overseas is definitely not for 'cheap labor', but because of business, R&D, and supply chain needs.

Everyone was surprised, and the old minister Su Dongsheng hurriedly asked, "Mr. Chen, is it really possible for the mainland to open up?"

Going home to visit relatives may be the idea of ​​some people.

Chen Guangliang nodded and said, "It depends on who comes to power. Of course, even if it is opened up, it will be a process."

"That's true"

In the afternoon, Chen Guangliang brought Chen Wenkai to Cheung Kong Holdings.

Later, Chen Wenjie also came to his office.

"dad"

"Big Brother"

"Sit down, I have something to discuss with you brothers."

Later, the three sat at the conference table, and Chen Guangliang took out a map.

"This is Tin Shui Wai, where a large local family controls a significant amount of land. Not far across the street is Shenzhen, the capital of mainland China. If the elder statesman comes to power, I think the mainland might follow Hong Kong's example and establish a special economic zone here in Shenzhen. Therefore, I want to buy land in Tin Shui Wai and build a large residential estate here, capable of accommodating at least 5 to 10 people. However, without jobs, this area will become a desolate place, so I also want to develop an industrial park here, similar to the new town of Tsuen Wan, led by Cheung Kong Holdings and Cheung Kong Holdings!"

At this time, Hong Kong's employment rate could reach 100%, and it could even be described as a 'labor shortage'.

However, the influx of hundreds of thousands of mainlanders into Hong Kong in the next few years could improve this situation.

Chan Man-kit, who is very familiar with Tin Shui Wai, said, “Acquiring this land is not difficult. This large family is a clan with the same surname and doesn’t know anything about real estate development. I can acquire the land here and in the surrounding area immediately. However, the roads, electricity, and other public facilities here, like Discovery Bay, will need to be built from scratch. More importantly, we need to obtain the support of the Hong Kong government and even test the attitude of the mainland. Therefore, we can bring in China Resources as a shareholder and invite British capital, such as Wheelock, to invest. With Cheung Kong Holdings taking the lead and multiple consortia joining, we can take care of all aspects.”

Chen Guangliang appreciated his eldest son's idea and said, "Let's do it your way! Wenkai will be in charge of the industrial park. In the next few years, we expect a lot of irregular immigrants to flood into the mainland. When they come to Hong Kong, they can immediately find a job in Tin Shui Wai. In fact, Hong Kong can accommodate more people, but the development level of the New Territories is too low. Tin Shui Wai will be our first testing ground."

The economy of Hong Kong in this life is completely different from that in the previous life.

At this point, the situation is already more than 20% better than at the same time in the previous life. If the 'technology' and 'culture' industries explode later, Hong Kong's economic difficulties will be more than 50% better than in the previous life.

By then, Singapore's GDP per capita may not even catch up with Hong Kong's. (End of Chapter)