Siheyuan (courtyard house): My name is Shazhu!
Chapter 386 The terrifying Dongda Group!
On the morning of the third day, the Far East Daily, under Sun Dewang's control, published a full-page report entitled "On the Economic Strength of the Dongda Group and its Relationship with Kowloon Walled City and the New Airport".
It's very eye-catching and attention-grabbing, especially since everyone in high society knows that Niu Niu wants to solve the problems of Kowloon Walled City and the new airport.
They also want the new airport to be built, and the old airport's old land, which is a large area, can be used to build a fully-equipped community integrating commerce, finance, leisure, and residential buildings.
They simply don't have the money, not even for payment. There's only one reason: the construction period is long, the results are slow, and the loan interest can be overwhelming.
Besides, it's not like you can just borrow 150 billion yuan. How many banks in Hong Kong can lend it out? And what collateral do you have to take out a loan?
Bank of New Zealand and Bank of New Zealand are barely surviving, banks from the United States and Japan need collateral, and only Bank of Eastern Japan and Hang Seng Bank remain as domestic banks.
Dongda Bank doesn't lend money; they have no interest in deposit and loan business, and their lending is likely to be virtually zero unless they actively lend to other companies.
As for Hang Seng Bank, a loan of a few hundred million is not a big problem, but a loan of hundreds of billions would definitely require the approval of Dongda Bank, which is too risky and basically impossible.
In short, only the East Group had the capability to rebuild both Kowloon Walled City and the new airport at the same time. Don't forget, by the end of 1973, they had earned less than 100 billion US dollars!
That's equivalent to HK$500 billion!
You can build Kowloon Walled City and a new airport simultaneously without needing a loan!
Let's see what the newspapers say first!
The Far Eastern Daily News doesn't play games; it gets straight to the point with practical information.
"Hello everyone, I am... Next, I will introduce the industries controlled by Dongda Group, which I have learned through five years of investigation and evidence collection. Please feel free to add any parts I have not mentioned."
First, I divide the Dongda Group's companies into three main parts: Hong Kong, Malaysia, and Australia.
First, let's look at the port city sector. Everyone is quite familiar with the public companies here. Real estate rentals are about 4 billion annually, automobile manufacturing is 16 billion, and other companies are 6 billion.
Last year's net profit reached 25.2 billion. This year, we only project 26 billion!
That's equivalent to 4.6 billion US dollars!
I won't go into much detail about the port city sector. Dongda Group has an annual profit report, which they need to submit!
Next, I'll talk about the Malaysian sector, which is less well-known and where the Dongda Group has invested the most.
Because Hong Kong was not big enough, Dongda Group shifted its investment focus to Malaysia more than a decade ago. How large was its investment there?
I can tell you with certainty that it's at least four to five times the standard, and it's still expanding.
Of those, the steel plant has a capacity of 28 million tons, while ours only has 1 million tons. We've just built a 4 million-ton electrolytic aluminum plant, which isn't yet profitable on a large scale, but the world needs electrolytic aluminum.
The mine produces one million tons of copper annually, and it just started production this year. The aluminum plant is also profitable this year.
The automobile manufacturing industry in Malaysia produces five million vehicles and 970,000 mobile phones a year. It has the entire industrial chain that the East Asia Group often mentions.
There are more than 800 supporting factories, but I haven't finished checking the exact number yet.
There are three East Malaysia Bank branches in New Town, Kedah, and East Malaysia. They rank first in annual deposits and loans in Malaysia, and these loans are exclusively for subsidiaries of the East Malaysia Group.
Also, I'll let you in on a little secret: in East Malaysia, the East Malaysia Group has two arms manufacturing plants that can produce tanks, artillery, and light weapons.
Next up are the other manufacturing businesses of the Dongda Group, which is their strength. Expand the scale here fivefold, you can do the math yourself.
Finally, in the port and transportation sector, they acquired four of the seven major ports and three large shipyards, with a shipbuilding tonnage of one million tons this year.
Among them are warships weighing over 100,000 tons, which were custom-built by the Malaysian military. Their shipbuilding technology is very advanced and has been recognized by naval officers and soldiers.
Their cargo ship building technology must be quite good.
Besides shipyards, they also outsource the ports and cargo ships after acquiring them, without managing them themselves, perhaps because they are still unfamiliar with the industry.
To sum it up, let me tell you about their profits last year. Their after-tax net profit last year was—
203 billion US dollars!
Equivalent to HKD 1146.95 billion.
The combined net profit of the two locations in Hong Kong and Malaysia last year —
249 billion US dollars!
HK$1406.85 million!
This is just their profit from last year; they can't expand much here. Unfortunately, our territory is too small!
In Malaysia, I asked a senior tax official, and he replied that the profits and taxes of the East Asia Group would double in the next two years, either this year or next.
Because Dongda Group has put 15 large factories into production this year, and other companies' products are entering the US and Europe, many companies are expanding.
Here's another piece of news: a small beverage factory in Malaysia, one that we might not even consider a threat, had a pre-tax profit of 770 million Malaysian Ringgit last year.
The corporate tax there is 15%!
Friends, it's not that business is too difficult, it's that our business skills are insufficient!
By the end of next year, the net profit of the two sectors of Dongda Group will be between 40 billion and 50 billion US dollars!
Is it difficult to solve the Kowloon Walled City problem?
Is rebuilding a new airport difficult?
It's not difficult at all, it's even a piece of cake. According to Dongda Group's usual practice, I provide the money, other construction teams provide the manpower, and I inspect the quality of the project!
It's time for our old airport to be relocated. It's like a horror movie playing out every day. Pilots are scared, and so are the residents below. What if something really happens?
The last section is something many people are unaware of. I received the information from Malaysian customs, and it took more than a year of certification in Australia to confirm this news.
Completely authentic!
During the current long-term iron ore pricing mechanism, the FOB price of iron ore from several major companies is around US$17 per tonne.
Dongda Group owns a super-large iron ore field with total reserves of over 5 billion tons.
There are also two large bauxite mines, two copper mines, two gold mines, one lithium mine, and one titanium mine.
Local officials say these mineral resources are now worth 230 billion US dollars.
They acquired these mineral resources using only 2.2 billion US dollars to buy land and search for minerals, starting in 1968, which has been going on for ten years.
Excluding investment, labor, and taxes, Dongda Group can earn at least one-third of these mineral resources, nearly 80 billion US dollars.
The mining department of Dongda Group is also an incredibly powerful department. Reliable sources indicate that they are also searching for minerals in several countries with abundant mineral resources in the world.
How much revenue do these mineral resources bring to Dongda Group each year? I don't know. I only know that mineral resources have been increasing in price over the past ten years.
This is why Dongda Group has been searching for mineral resources—it's for what they call a complete industrial chain!
Nowadays, few companies in our port city have thought about what a complete industry chain is, right?
While gathering information, I heard a new term inside Dongda Bank: cash flow!
What is cash flow?
It's very simple; it's a company's cash reserves, used for emergencies to ensure the company's cash flow doesn't break down and prevent other companies from taking advantage of the situation!
Dongda Group's standing cash flow is—50 billion US dollars!
And it can be more, but it absolutely cannot be less than 50 billion!
This number is terrifying!
How many companies can do that!
I wrote this report because I believe that only the East Group can solve the problems of Kowloon Walled City and the new airport.
They should also be dealt with. If they lacked the ability before, there is no reason to do so now.
The Dongda Group possesses martial virtue and is incredibly powerful!
Dongda Group is incredibly wealthy, ridiculously so!
The conditions are fully met!
What are you waiting for?
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