Chapter 421: Industrial Bases on a Scale-by-Scale (Part II)
The car was parked at the intersection of Renmin South Road and Guest Road, at the main entrance of Feihong Building, and a service person wearing an orange dress at the entrance of the building came up to open the door attentively. Before the International Trade Building across the road was officially put into use, the 40-storey Feihong Building was the tallest building in the Deep Sea Special Zone and Chinese mainland.
However, the International Trade Building has been confirmed to be put into use before the end of the year, so the title of the tallest building in China, Feihong Building can be maintained for half a year at most. Walking into the welcome hall of the building, a large photo frame four meters long and two meters wide hangs prominently. The photo inside is the scene where Mr. D cut the ribbon for Feihong Building during his southern tour last year.
Fei Hong Building is a comprehensive commercial center, the top six floors are the first four-star hotel in the Deep Sea Special Zone, and the third basement floor was originally planned to be reserved for parking lots. But now cars are very scarce in the mainland, so it is more than enough to take out one floor as a parking lot.
The remaining two floors have been converted into a large shopping mall, and the owner behind this shopping mall is none other than Lizhi. After starting to devote herself to business a few years ago, Limei is now a well-known strong woman in the Special Economic Zone. However, since her daughter Xiaodoubao fell to the ground, Lizhi seems to have lost interest in the business sea again.
She now puts almost all her energy on taking care of her daughter, and leaves her business affairs to others. She is not in the Special Zone these days, but has taken her daughter to Huhai City to see her grandmother. Otherwise, Zhong Chuhong would definitely not be willing to accompany Li Xuan to her territory!
Before Feihong Building began to be rented, Li Xuan asked Lin Yuhao to reserve a floor for himself as the office of the Oriental Group. As the Oriental Group's operations in the Deep Sea Special Zone continue to expand, the office staff is gradually filling the entire floor of the office building.
The occupancy rate of the office area of Fei Hung Building is 100%. So several of the building's office elevators have been very busy. As soon as Li Xuan and Ke Lilun walked to the elevator entrance, several young people standing there talking and laughing suddenly restrained their expressions. Two of them respectfully greeted Curry.
"Li Sheng, hello!" the other person said hello to Li Xuan in Cantonese first.
"Do you know me?" Li Xuan smiled kindly at the other party.
"Liu Chang is one of the first batch of Tsinghua high-achieving students to participate in the 'Dongfanghong' exchange program. It is also one of the first batch of fresh graduates we recruited in domestic universities, and I met you when I participated in the induction training in Hong Kong before!" Ke Lilun had already explained on his behalf before Liu Chang could speak.
At this time, the other two young people finally recognized Li Xuan. In fact, there is no one in the staff of the Oriental Group who does not know their big boss, but Li Xuan has never been to this office in the Feihong Building before, so the other two people did not expect to meet Li Xuan at all.
Ke Lilun also briefly introduced the situation of the other two to Li Xuan, who also joined the Oriental Group last year and had been working in Guangdong City before deciding to resign and come to the Deep Sea Special Zone. Chrillan has a very good memory. I have an impression of almost every employee under my hands.
Oriental Group is located in the office of Fei Hong Building, and the official name is Oriental Commercial Deep Sea Branch. Its main task is to coordinate the investments of the Eastern Bloc in the Deep Sea Special Zone. The general manager of this branch is not Kellylen, because Coolun's status is higher than that of the company's general manager.
He is the Special Representative of the Group Headquarters and is responsible for all matters of the Eastern Bloc in the Deep Sea Special Zone. At present, the large-scale wholly-owned projects under construction by Oriental Group in the deep-sea special zone include RCA Asia CRT Factory, Oriental PCB Factory, Fairchild Deep-sea Wafer Factory, in addition to a bunch of joint ventures, cooperation, and technical support projects.
The deep-sea branch of Oriental Commercial is the main force used by Clillen to deal with various complicated work. In the first half of this year alone, the deep-sea branch recruited another 30 people. This brought the total number of people to more than 150. Only a few of them were relocated from Hong Kong, and most of the staff were recruited locally from the Deep Sea Special Administrative Region.
Li Sheng, according to the statistics of the relevant departments in the mainland, as of the end of last year. Urban residents have only 17 color TVs per 100 households, and rural residents have 0.8 color TVs per 100 households. With the continuous growth of the mainland economy, the per capita income is constantly increasing. In the next three to five years,Color TV sales in the domestic market will usher in an explosive growth!
And for domestic electronics factories. The profit from the production of color TVs is also very considerable. Importing a 14-inch color TV from Hong Kong costs about $200. After assembly, the ex-factory price is about 750 yuan. That is to say, for every TV set produced, there can be at least 150 yuan profit!
And if we can localize some parts and reduce the purchase of imported parts, the profits that factories can obtain will be even higher! Therefore, in recent years, mainland electronics enterprises have begun to introduce television production lines.
According to the data we obtained, in the five years from 1980 to the present, domestic electronics factories have imported more than 40 TV production lines from abroad.
And because the profit of producing television sets is much higher than that of radios, tape recorders and other electronic products, there will be more and more electronic factories that focus on the manufacture of television sets. It is said that before the end of the year, there will be more than a dozen new TV production lines in China!
Because we have a good precedent for cooperating with Huaqiang Electronics Factory, I have received more than 10 joint venture invitations in the past month!"
Listening to Ke Lilun's introduction, Li Xuan was not surprised at all by this rush in China. TV should be one of the first large-scale unsalable industrial products in the mainland, which is why Changhong Company's later industry price war to serve the country, to put it bluntly, is to dump inventory at low prices!
He shook his head and sighed: "Even if the domestic demand for color TVs will usher in a big explosion, but in the face of this blind capacity expansion, I estimate that in less than four or five years, the mainland will face a situation of oversupply!"
On the one hand, we are building a joint venture with Huaqiang Electronics to deepen the good relationship with the Shenhai Municipal Government, and on the other hand, to further consolidate the TV industry base we are building in the Special Economic Zone!
Only by allowing state-owned enterprises to join in will we be able to get the greatest support from the government in our industrial layout! As for enterprises outside the special zones. In the future, we will only cooperate with each other and not joint ventures, and we can provide technical support! Or the technology of core components such as picture tubes, we can give them. As long as they have enough funds!"
"We are currently negotiating with Aihua, another large electronics company in the Special Economic Zone, with which we hope to make a joint venture to produce audio-visual products such as radios, cassette recorders, and video recorders!"
RCA's product categories are not only televisions, but also unreliable businesses such as blankets and insurance, and RCA also produces a variety of audio-visual equipment such as radios, record players, video recorders, and video cameras.
In addition to NBC, the largest television network in the United States, NBC also has the largest radio network in the United States, which is composed of more than 100 local radio stations! In addition, RCA also has RCA Records, which is an important company in the American music field, but in the recent industrial restructuring of RCA. It's been sold!
In the consumer electronics produced by RCA, radio sales are actually not much less than that of televisions! There is a scene in the Hollywood classic "Groundhog Day" where the bedside radio wakes up the protagonist at 6 o'clock in the morning, and then starts broadcasting the radio program.
The same footage has been seen in countless other American films, and the forty- or fifty-dollar alarm clock radio is all too common in American homes and hotels.
RCA has recently developed a new TV alarm clock radio, adding a 4.5-inch black-and-white display to the original one, allowing users to watch TV when they wake up. This new product costs $79. It is said that the sales are also so-so!
In addition, RCA also has a large market share in the car radio market. The United States is a country on wheels, and almost everyone has a car. And audio equipment is an indispensable accessory in every car. From the early days of radios, to the current car stereo with integrated cassette recorder function, it can play cassette music.
RCA's radio manufacturing business. It will also gradually move to the deep-sea special zone in the next few years. One of the biggest effects of Li Xuan's acquisition of RCA is this. It was the Eastern Bloc that began to enter the interior ahead of schedule.
Before Li Xuan's acquisition of RCA, Oriental Group did not invest much in China. Because of the three main businesses of the Oriental Group: semiconductors, games and personal computers. None of them are suitable for entering the mainland.
The Batumi organization strictly restricted the export of chips of more than 8 bits to China, and the arcades and personal computers sold by the Eastern Bloc used ERM series processors. Therefore, arcade machines and personal computers were not suitable, and they were transferred to the country for assembly and manufacturing.
However, after the acquisition of RCA by the Oriental Group, most of the consumer electronics sold by RCA were not within the scope of the Batumi embargo! In order to reduce production costs, Li Xuan took a big step into the mainland ahead of schedule!
"Li Sheng, Mayor Liang told me just now that he wants to come and visit you, the God of Wealth!" Yang Lingjun, the president of Jiahua Bank, walked in and saw that Li Xuan was also there, so he laughed out loud.
"I don't have a lot of money in my hand, he just needs to win over you, the God of Wealth!" Li Xuan waved his hand with a smile.
Li Xuan actually came to Shenhai City to stay here for one night every once in a while, but he always came to accompany Li Zhi and his lovely little daughter in his private name. If he had to do it, the Shenhai City Government would not come to disturb Li Xuan's private time, because he was notoriously lazy to socialize.
"Recently, there has been a saying here in the Special Administrative Region that China Merchants is the easiest department! Even if you sleep at home every day, you can still exceed your work quota! Mayor Liang should indeed give Li Sheng a certificate of merit!" Ke Lilun should also joke.
In the past year or so, just because of the transfer of RCA's television industry, the deep-sea special zone has absorbed as much as 1 billion Hong Kong dollars of foreign investment. It can be said that the investment promotion bureau of the Deep Sea Special Zone can definitely be honored as the most outstanding department in the country for investment promotion, although they have done nothing!
And what makes the deep-sea special zone even happier is that the follow-up industrial agglomeration effect is also emerging. For example, after losing to the Eastern Group in a joint venture project with Huaqiang Electronics Factory, Japan's Sanyo Company turned to cooperate with Shenhai Electronics Group, another large electronics company in the Shenhai Special Economic Zone.
Shenhai Electronics Group is a large electronics company newly established at the beginning of this year by integrating the factories built in the Special Economic Zone by the Ministry of Electronics Industry. Together with Huaqiang Company and Aihua Company, it constitutes the main framework of Shangbu Electronic Industrial Zone in the Shenhai Special Economic Zone.
"Just now, Mayor Liang also probed me and asked us if Jiahua Bank could provide a loan for the joint venture project between Shenhai Electronics Group and Japan's Sanyo. They are ready to jointly build a production line with an annual output of 300,000 color TVs!" Yang Lingjun said with a smile.
"Why refuse! We are open to do business, and we will never be domineering to ask domestic enterprises that they must only cooperate with us!" Li Xuan shook his head with a smile and said.
"That's what I said. And at that time, we also assured Mayor Liang that as long as the application submitted by Shenhai Electronics Group meets our review requirements, we will definitely give the most favorable loan interest rate!
It is said that Japanese banks are also interested in providing loans, and I also pointed out to Mayor Liang that the yen has always been in the appreciation channel, and if domestic enterprises apply for yen loans, they are likely to face a lot of exchange rate losses when repaying in the future!" Yang Lingjun said with a smile.
"Old Yang, what is the scale of Jiahua's credit in China?" Li Xuan asked Yang Lingjun.
"As of the beginning of June, we have issued a total of 8.15 billion Hong Kong dollars in loans to the mainland, of which 5.5 billion Hong Kong dollars are concentrated in the deep-sea special zone!" Yang Lingjun casually quoted two figures.
In other words, in the past two or three years, Jiahua Bank alone has injected up to 700 million US dollars into the deep-sea special zone. Li Xuan called Yang Lingjun the God of Wealth of the Shenhai City Government, which is not an exaggeration.
Of course, the main flow of these funds of Jiahua Silver is actually deeply related to the industrial layout of the Oriental Group. Li Xuan's acquisition of Jiahua Bank was to strengthen the ability of Oriental Group to carry out industrial layout with the help of financial means. Most of the companies that have received credit support from Jiahua Bank are those that are in the interests of the Oriental Group.
The loans granted by Carnival Bank in the Deep Sea Special Administrative Region are not limited to Hong Kong enterprises. Many domestic enterprises that have settled in the deep-sea special zone can also obtain foreign exchange loans from Jiahua Bank as long as they meet the requirements.
In the supply and marketing procurement system that the Oriental Group is vigorously promoting, more and more domestic enterprises are joining it. And these companies that are able to obtain orders can easily obtain loans from Jiahua Bank when they seek to expand production.
And the Eastern Bloc also took this opportunity to continue to put its roots deeper into the ground. Because every enterprise that joins the Oriental system has actually become a community of interests in this system. (To be continued......)