The next morning.
After breakfast and reading the newspaper at home, when the clock struck nine, Lin BaoCheng left for Jupiter Toys Company.
His secretary Qin Lan had already gone ahead.
As Lin arrived, he saw Qin Lan, factory director Huang JianHe, and a middle‑aged man walking out.
"Mr. Lin," they greeted.
"Mm, let's talk as we walk," Lin said, leading them inside.
The middle‑aged man was Zhang Sheng. Lin knew him, though they had only met once — during Zhang's interview, when Lin hired him as manager of Jupiter Toys. Afterward Lin went to America, returning only days ago.
Lin had appointed a manager because Huang could run the factory but lacked the ability to grow the company. A professional manager was needed.
Zhang reported:
"Mr. Lin, per your instructions, after halting production of older toys, we focused solely on Rubik's Cubes. We've produced over 3 million so far, just over 1 million short of the 5 million target."
Like other products, higher output lowered costs. At present, each cube cost HK$5 (about US$1.20). Producing 5 million required heavy investment, but Lin could afford it.
He wanted such volume because beyond Hong Kong, Japan, and the U.S., sales would rely on agents. For now, Rubik's Cube wasn't famous enough to negotiate high prices. Lin planned to wait until it gained fame in America and Japan before negotiating with agents elsewhere.
Once agents were secured, cubes could be shipped immediately, preventing counterfeiters from flooding the market first.
Unlike Galaxy Games' arcade machines, which had anti‑piracy software, the cube's patent couldn't stop small workshops from copying. Big companies wouldn't risk infringement, but small ones would, if profit beckoned.
Zhang continued:
"In Hong Kong, our toy shops have expanded to 20. Another 10 will saturate the market. No need for more."
"As for the product design you provided, under Master Gong Xiang's guidance, we've built prototypes."
Earlier that year, Lin had sketched a product from the future, explained its functions, and asked Gong to build it. Today he came to see the sample.
"Because of factory expansion, we purchased land from the government. The factory now covers over 5,000 square meters, fully utilized with larger workshops."
"Financially, the company still has nearly HK$20 million in its account, enough for the first batch of new products."
Lin had acquired Jupiter Toys for HK$6.2 million, later injecting HK$3.8 million. To stockpile cubes, he twice added HK$10 million, then another HK$20 million after profits from Hutchison Whampoa. Altogether, he had invested HK$50 million.
The company spent heavily on cube storage, land, construction, shop expansion, and wages.
Still, it earned revenue: each cube sold to America's Starlight Company for US$10. Later, prices would drop. For now, the high price helped with tax avoidance, since Hong Kong's taxes were lower than America's.
He hadn't set US$15 or higher because Starlight itself had invested heavily this year, with expenses exceeding profits, giving it tax shields. No need to inflate prices further.
Of course, Jupiter Toys hadn't yet received payment. Only once Starlight sold large volumes would money flow back.
Soon, Lin and the others entered the meeting room. Besides Gong Xiang and several craftsmen, there were two upright rectangular machines, their upper sections encased in glass.
Anyone from decades later would recognize them instantly as claw machines. One was filled with plush toys, the other with cigarettes.
"Excellent," Lin said, examining them. They resembled future claw machines. Though less sleek and high‑tech than later versions, they were impressive for the era.
The protruding box housed the coin slot, joystick, and buttons for operation.
"Master Gong, how's the product? Any issues?" Lin asked.
"Rest assured, Mr. Lin. We've tested dozens of times. No problems," Gong replied.
"Good. Let me try."
Lin inserted a coin and operated the joystick. The claw moved smoothly, without stutter.
He aligned the target but didn't press the button, instead waiting for the three‑minute timer to expire. The claw descended automatically, grabbed a toy, lifted it — then dropped it before reaching the chute, returning to its original position.
"Very good!" Lin said, satisfied with the performance. He tried the cigarette machine too, with similar results.
He instructed Zhang:
"Manager Zhang, produce several more prototypes. Have people test them repeatedly. If problems arise, fix them immediately."
"Yes, Mr. Lin," Zhang replied.
The claw machine wasn't highly technical. With money and basic engineering, it could be built. Advanced technology was beyond Jupiter's reach.
Because the technology was simple, patents were crucial. Lin always valued patents. From the start of development, he had already arranged for worldwide applications.