The headline on the front page of the latest issue of "Xin Pao" caused quite a stir in the Hong Kong industry.

Hong Kong Economic Journal, whose full name is Hong Kong Economic Journal, is the first financial news newspaper in Hong Kong founded in 1973 by Mr. Lin Xingzhi, the former editor-in-chief of the financial section of Ming Pao Evening News. Although Hong Kong Economic Journal has only been in the newspaper industry for seven years, it can only be regarded as a fledgling young generation in Hong Kong's newspaper industry. However, its professional positioning as a focus on financial news has been increasingly recognized by Hong Kong's business community.

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The electronics company, called Oriental Technology, is just a new company that has been around for less than half a year, but it has risen to prominence with two arcade games called "Hong Kong Cubes" and "Tank Wars".

Last Christmas, there was a gathering of 1,000 people at the Lisheng Cinema, precisely because the company's two new game consoles were tried to cause a sensation among players. Since the second half of last year, nearly 100 new arcade game halls have been added in Hong Kong and Kowloon, and the recent shortage of five millimeters coins in Hong Kong is also due to the trend brought by these two game consoles.

In addition to being popular in Hong Kong, Dongfang Electronics' game consoles are also popular in the entire U.S. and Japanese markets, and this newspaper learned from an employee within the company who did not want to be named that the large number of overseas orders accumulated has made Dongfang Corporation's production plan scheduled until the end of the year.

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Dongfang Electronics Co., Ltd. invested 50 million Hong Kong dollars to launch a comprehensive cooperation with the Chinese University of Hong Kong to jointly establish the CUHK-Dongfang Electronics Real Yàn Room and the CUHK-Dongfang Semiconductor Real Yàn Room, which also shows that Dongfang Electronics Co., Ltd. is unwilling to be confined to a small corner of the game industry and is ready to enter the electronics industry in an all-round way.

Although Hong Kong's electronics industry has developed rapidly in recent years and has become the second pillar supporting Hong Kong's economy, it also has low technical content and low added value of products.

In recent years, people of insight in Hong Kong have been lobbying the Hong Kong government to increase policy and financial support for emerging industries. However, the actual action of the Hong Kong government is extremely limited, and the long-awaited special research support fund for the electronics industry has finally allocated only 3 million Hong Kong dollars, with CUHK and HKU sharing half each, which has greatly disappointed the industry.

This time, Dongfang Electronics, a new company that had just been established for a few months, spent 50 million yuan in one go to cooperate with CUHK in scientific research, and its determination to invest in scientific research undoubtedly slapped the face of the Hong Kong government authorities. The Hong Kong government collects hundreds of millions of dollars in taxes from Hong Kong's large and small electronics factories every year, so why can it use an excuse of active non-intervention to shirk the responsibility that the government should bear!

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In addition to Hong Kong Economic Journal, major Hong Kong newspapers such as Oriental Daily, Ming Pao, and Sing Tao Daily have published on their front pages the news that Dongfang Electronics Company has invested 50 million yuan to cooperate with the University of Hong Kong. For the first time, the name of Dongfang Electronics Company was really heard by the general public in Hong Kong.

In fact, in addition to the cooperation between Chinese University that has just been exposed, the cooperation plan between Dongfang Electronics and the University of Hong Kong and the Hong Kong Polytechnic is also being discussed in detail. The investment amount will reach 30 million and 10 million respectively, and will be determined one by one in the next few months.

The fax application letters from various newspapers and periodicals requesting exclusive interviews have long accumulated a thick stack of paper. The public relations department of Dongfang Electronics Company has prepared a comprehensive and complete corporate image publicity plan with a time span of up to half a year.

After the public relations department conducts screening, in the next few months, the current CEO Han Peng, the vice president of R&D Du Wenqiang, and one of the company's earliest employees, Liang Ning, who is also the current director of the arcade R&D department, will selectively accept interviews with various newspapers.

Some of them will talk about the entrepreneurial story of the company when it was first established, some will talk about the marketing story of the game console to open up overseas markets, and some will talk about the company's future blueprint and development ambitions. All in all, all the stories they tell will show the side of Dongfang Electronics that they want to show to the people of Hong Kong in an orderly and step-by-step manner.

Dongfang Electronics Company will soon establish a vigorous, enterprising, vigorous, and high-spirited high-tech corporate image among the five million Hong Kong citizens.

And Li Xuan, the big boss, quietly hid in the ivory tower of CUHK at the moment, and gave up the opportunity to focus the flash to Han Peng and others. High-profile work and low-key talent are his pursuits.

The Hong Kong Economic Journal's editors may not have noticed that it was Dongfang Technology Holdings, not Dongfang Electronic Technology Co., Ltd., that signed the cooperation agreement with CUHK. Oriental Technology Holdings is a shell company established in the Cayman Islands for the sole purpose of tax avoidance.

After Dongfang Electronics' finance department was officially set up, Luo Zhiping, the financial director poached from the Bank of East Asia, quickly noticed the company's ultra-high profitability. The gross profit of ordinary electronics factories in Hong Kong is already very good if it can reach 20 percent, and the gross profit of many small factories doing OEM is below 10 percent, while the gross profit margin of Dongfang Electronics Company is as high as 200 percent, which is really too profitable.

Such a high profit margin will be wiped out by the Hong Kong Inland Revenue Department if it is not used for tax avoidance. Tax avoidance is not tax evasion, it is completely legal. Li Xuan had the idea of tax avoidance before, and specially set up an Oriental Technology Holding Company in the Cayman Islands to wholly control the Hong Kong-registered Oriental Electronics Company. But he is not a professional after all, and he does not know how to operate it

As a result, under Luo Zhiping's operation, the American agents who originally signed the purchase agreement directly with Dongfang Electronics Company all resigned the contract to the name of Dongfang Holdings. After raising the price by 20% according to the actual production cost of the arcade, Dongfang Holding Company signed an arcade contract with Dongfang Electronics for the commissioned production of arcade machines.

As a result, most of the profits from arcade sales were kept in the name of Oriental Holdings in the Cayman Islands. According to Hong Kong's tax law, Li Xuan's property does not need to be taxed to the Hong Kong government.

The comprehensive cooperation agreement between Oriental Science and Technology Holdings and the Chinese University of Hong Kong actually consists of three parts. The first part is the joint establishment of the Zhongda-Dongfang Semiconductor Office and the Zhongda-Dongfang Electronics Office. The equipment and research funds of the two laboratories are fully funded by the Oriental Company to carry out joint research on projects of mutual interest.

Oriental Company has the right to screen and approve the projects submitted by CUHK, and once the projects applied by CUHK are approved, Oriental Company will allocate the corresponding equipment and funds according to the research plan. The project team is obliged to accept the financial supervision and results inspection of Dongfang during the research and development process of the project, and Dongfang Technology Holding Company will have full ownership of the patents of the research and development results.

The first phase of the R&D fund of the semiconductor laboratory is 20 million, which is mainly used to carry out research in the direction of integrated circuit design, semiconductor device development and research, and processor design. The first phase of the R&D fund of the electronic real room is 25 million, and priority is given to accepting polite R&D applications for computer hardware and computer software. After the contract was signed, Dongfang Company had already allocated 10 million Hong Kong dollars each to the specified bank account as soon as possible, so that the two real rooms could start operating as soon as possible.

The second part of the cooperation between the two parties includes the establishment of a number of scholarships in the name of DFE, of course, mainly for students majoring in e-learning. In addition, in the next three years, Oriental will sponsor CUHK to hold a number of campus competitions, such as the Computer Software Design Competition, the Computer Operating System Development Competition, and the Video Game Development Competition. There is also a research award scheme for CUHK teachers, and Dongfang Electronics will invest HK$5 million in this series of projects.

As for the third part of the cooperation, Chinese University provides information and intelligence collection support to Dongfang Electronics, especially patent search, helps Dongfang Electronics Company to carry out employee training, and carries out cooperation projects such as internship for CUHK students.