Chapter 200: Wealth Statistics of 1960
"Ten-Thousand-Person Industrial Park?" Wei Zetao repeated, his heart filled with emotion.
Two years ago, when he joined Changxing Industrial, he could never have imagined that the small factory of only a few thousand square feet would grow into the massive operation it was today.
Zheng Zhijie added, "Great name—it sounds impressive just hearing it."
Yang Wendong smiled. "Alright then, let's each focus on our own responsibilities. Remember, this project is strictly confidential. Only the four of us know about it right now. Not a single word to a fifth person.
Old Zheng, once you're back, start immediately. The faster you move, the better. Buy up as much property in Kwun Tong as possible. The government won't give us this window forever."
"Understood. I'll start arranging everything this afternoon," Zheng replied.
"Good. That's it for now." Yang nodded.
After the two left, Su Yiyi asked, "Kwun Tong's economy isn't as good as Tsim Sha Tsui, right?"
"That's true," Yang said, smiling. "Based on my understanding of government policy, Tsim Sha Tsui will likely become the main commercial hub on the Kowloon Peninsula.
Kwun Tong, though—it'll probably be designated either as a residential or industrial zone."
"That actually works well for us," Su Yiyi nodded. "We can use this as an opportunity to relocate our factories there. It aligns with the government's plans and improves our production efficiency."
Yang nodded. "Exactly. At this rate, Kwun Tong is going to become one of our primary investment areas."
Although he had initially planned to accumulate more land in Tsim Sha Tsui, it was nearly impossible to find large enough plots to build anything close to an industrial park.
And with his manufacturing business growing faster than expected—and now even more profitable than shipping and real estate—it only made sense to center investment strategy around it.
As for land hoarding, with the factories earning so much, who knows how much property or land he could buy before the real estate crash in '66?
Su Yiyi grinned. "Dong-ge, I remember you once said that wherever we invest becomes the new economic center. Maybe one day, Kwun Tong will surpass Tsim Sha Tsui?"
"Haha, it might just happen," Yang laughed.
Given his trajectory and knowledge of the future, if he focused heavily on investing in Kwun Tong, it was entirely possible that the district's economy could one day surpass that of Tsim Sha Tsui.
Still, such changes should follow market trends—forcing them was rarely worth it.
In real estate, timing and momentum mattered more than anything. Whenever a business giant tried to reshape the market through sheer will, they were usually doomed to fail.
The very next day, Zheng Zhijie began buying property in Kwun Tong. News quickly spread, and many real estate agents took note, sparking interest from other developers.
But none of them could figure out why Changxing Real Estate was suddenly so interested in the area.
Meanwhile, Yang didn't rush to give Elena an answer. He needed to buy time for Zheng to move.
However, out of concern for the many Chinese families displaced and still stuck in government shelters, Yang donated HK$200,000 to purchase essential supplies—mostly food—to be delivered to the area.
Luckily, winters in Hong Kong weren't harsh, so there was little risk of anyone freezing to death.
January 25, 1961.
Yang and Su Yiyi visited Ganghua Tower.
On the top floor, in the Changxing Real Estate office, Su Yiyi held a pair of binoculars and gazed into the distance.
"What are you looking at?" Yang asked as he approached.
"The Jili Building," Su Yiyi replied with a smile. "It's already halfway done."
"Pretty much," Yang said. "We should reach structural completion by May."
"May?" Su Yiyi smiled. "That's just around the time the baby's due."
"Yeah," Yang nodded. "Once the baby's born, take a few months off. Forget work for a while.
I won't take a full break, but I'll definitely set aside time to help with the baby."
Su Yiyi laughed. "Work's still important, you know. Make sure you keep a balance."
"Don't worry," Yang shrugged. "Honestly, I already delegate most minor matters. The headquarters office now has over a dozen staff members. They're in charge of reviewing operations from all subsidiaries."
A large enterprise needed systems, and Changxing Group was no exception.
Each subsidiary had its own management team, but they were required to report monthly on finance, HR, and key operational issues.
The HQ would review these reports, verify any red flags, and even conduct periodic spot checks regardless of issues.
They also had embedded observers in each company—staff who didn't manage anything but simply recorded everything for HQ's review.
To avoid corruption or collusion, Yang also scheduled surprise third-party audits of both subsidiaries and the HQ.
It cost more, but it let Yang focus on the big picture without getting bogged down in day-to-day micromanagement. It was worth every dollar.
Su Yiyi added, "The internal audit team recently flagged three corruption cases. One of them is basically confirmed, while the other two are still under investigation. Should we alert the police?"
"Give me the details," Yang said.
"All three are procurement officers from Changxing Industrial," Su Yiyi replied. She had already memorized the details and laid them out clearly.
After listening, Yang said, "The amounts involved aren't huge. Let's wait. Once we get solid evidence on the other two, we'll handle all three together."
"Shouldn't we report them now and let the police investigate?" Su Yiyi asked.
Yang shook his head. "In civil cases, maybe. But for internal corruption like this, we can't go to the police without some level of proof.
If we're wrong, the negative impact on our company's reputation would be severe.
We just need one confirmed act—that's usually enough to bring everything down. The police can take it from there."
Hong Kong's police force in the '60s wasn't exactly known for integrity, but large corporations reporting internal crimes were treated differently from everyday citizens.
Over the past two years, Yang had also frequently met with high-level expats. While not particularly close, their relationship was mutually beneficial.
"Oh," Su Yiyi nodded thoughtfully.
Knock knock knock.
The office door opened. Yang smiled. "Come in, Sister Wang."
It was Wang Fengzhi, now the head of HQ finance.
"Mr. Yang, Mrs. Yang," she said politely as she entered.
"Please, have a seat," Yang said, and both he and Su Yiyi joined her at the desk.
"Thank you," Wang said. "Mr. Yang, I've completed the annual financial report for Changxing Group."
"Great, let me see it." Yang took the file and began reading carefully.
Wang explained, "Changxing Industrial remains our most profitable division. Last year, net profit reached HK$25 million and grew steadily month by month.
We started the year with around HK$1.5 million in monthly profit. By December, we were hitting HK$3.5 million.
If we hadn't bought so many new warehouses midyear, annual profit could've exceeded HK$30 million."
"Hmm." Yang flipped through the summarized financials. "Post-it notes are still the top product? The suitcase business only brought in HK$550,000?"
Post-it notes had been 3M's biggest profit generator historically—even more so than their high-tech industrial adhesives.
Now, under his management, despite offering generous margins to distributors and fighting off rampant piracy, the explosive increase in production capacity was finally paying off.
"Yes," Wang confirmed. "Right now, our shipping capabilities limit us mostly to Asian markets.
The suitcases are considered a mid-to-high-end product, and purchasing power in the region doesn't compare to Europe or the U.S."
Yang nodded. "Once the shipping company scales up, we can push more aggressively into those markets."
"Exactly. Once we've expanded our fleet, we'll be able to ship not just suitcases, but also Post-its and adhesive hooks on our own vessels," Wang said.
Yang chuckled. Products like Post-its and hooks didn't weigh much but had high unit value, so freight costs weren't a huge factor. Still, owning the ships made everything cheaper and more convenient.
Wang continued, "Between adhesive hooks, mop buckets, and mouse glue traps, we're generating around HK$300,000 monthly profit combined.
The problem is piracy. Similar products are everywhere, even in developed countries. Our patents don't give us much protection."
"What a shame. In a perfect world, those three could be just as profitable as Post-its," Yang said with a sigh.
Post-its had fewer knockoffs, largely because they were sold through strong distributor networks and used by businesses. In developed countries with strict patent laws, enforcement was easier.
If 3M caught someone counterfeiting, one letter could shut them down.
Suitcases, being bulky, weren't easy to fake either. Most were sold in major department stores, and fakes were easy to spot.
But small items like hooks and glue traps were another story. Chasing pirates often cost more than it was worth.
Wang smiled. "There's no perfect world. But once we're big enough, that's when patents really matter."
"True," Yang said, returning to the report. "Is Ganghua Daily profitable yet?"
"Yes," Wang nodded. "It started turning a profit in the second half of last year. Last month's net profit was about HK$20,000, and we ended the year with HK$25,000 total."
"Not bad," Yang said. He never expected huge earnings from media, but profitability showed the business was sustainable.
Endlessly burning cash wasn't a viable strategy. Many companies avoided media altogether for that reason.
Wang continued, "Our radio station is also profitable now. We're still absorbing early equipment costs, so the annual balance is negative, but monthly operations are in the black."
"That's great," Yang said with a smile. Early radio investments were hefty, so he wasn't concerned.
Wang added, "As for Changxing Real Estate, this was our first year. We haven't closed a project yet, and we just bought more land.
So I calculated everything by project. Ti Xiang Shijia Phase II hasn't started pre-sales, but based on current housing prices, total net profit from the project should be about HK$1.3 million."
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