The birth of the Hong Kong Island family

Lin Zhichao took people to Tsuen Wan to inspect the site selection of the 'Cheung Kong Industrial Factory'. Looking at the farmland and beach land in front of him, he suddenly had many questions.

So desolate!

"Currently, what is the population of Tsuen Wan? How many factories are there?" Lin Zhichao asked Hu Siu-hsu next to him.

Hu Zhaoxu is the marketing manager of Cheung Kong Real Estate. His essential job is to search for properties and land in Hong Kong and sell Cheung Kong Real Estate properties.

He was involved in the selection of the factory site for Lin Zhichao's future father-in-law, Tang Bingyao. Of course, he was only providing reference opinions; after all, Hu Zhaoxu was a layman on what factors a textile factory should consider.

"According to the latest statistics from the Hong Kong government, Tsuen Wan should have a population of 6,000. As for factories, they are very rare. I have investigated a Liquan winery, Qingshan Ceramics factory, Texaco, Meiya Weaving Factory, Far East Tiehuo Company, Huanan Weaving The factory is more famous, and then there is Mr. Tang’s factory under construction.”

The population is only 6,000, but it will accommodate 600,000 people in the future;

There are less than ten factories, which is even more pitiful.

Of course, Tsuen Wan in later generations has been reclamated many times, and the current downtown of Tsuen Wan is only 0.5 square kilometers (only counting the city center, the entire Tsuen Wan is about 50 square kilometers).

Lin Zhichao suddenly had an idea and asked: "How much does it cost per square foot to build a factory here?"

He recalled one thing: Tsuen Wan truly became a paradise for factory owners in 1950.

Because starting from the spring of 1949, everyone gave up their illusions and came to Hong Kong one after another with funds and technology. At that time, there were no factories to rent in Western District, Sheung Wan, Wanchai, Causeway Bay, and North Point; so factory owners could only choose Shau Kei Wan and Chai Wan on Hong Kong Island, and Tsuen Wan near Kowloon.

So, in other words - the land in Tsuen Wan is going to skyrocket.

Hu Zhaoxu immediately said: "It is expected to be in the range of 3 to 5 Hong Kong dollars per square foot. Yangwu Road near the sea is more expensive (near the pier), followed by Castle Peak Road (the main road leading to Kowloon in the New Territories). This side is relatively barren, almost There is no factory location here, unless there is really no place to locate it.”

Lin Zhichao was immediately happy. Such cheap land would at least double or triple in price two years later.

So, he said to Hu Zhaoxu: "Now, you lead someone to search for me an industrial land suitable for building a factory in Tsuen Wan. Castle Peak Road is the best. I need a land of about 100,000 square feet (16.6 mu. One and a half The size of a football field.) to build a factory for Cheung Kong Industries. After this matter is completed, I will consider absorbing other land in Tsuen Wan. This place is good and has great potential.”

Hu Zhaoxu sighed inwardly at Lin Zhichao's courage. Judging from the boss's appearance, he was probably investing millions of Hong Kong dollars in land this time.

"Okay, I'll take action right away! Boss, don't worry, I'm already very familiar with this place, and I will definitely give you a suitable target!"

Lin Zhichao nodded. Of course he would not look for land himself. Once Hu Zhaoxu found a suitable target, he would then determine whether it was feasible, thus saving energy.

The land can be mortgaged for a loan, and then the loan funds can be invested again, just like a snowball.

However, although he knew that the land in Tsuen Wan was going to skyrocket, Lin Zhichao must have only invested part of his funds, and his eggs could not be put in one basket.

He will invest in the land in Tsuen Wan and divide it into two companies for investment:

Cheung Kong Industries invested in a land of about 100,000 square feet, and then divided the land into two phases. The first phase of the project will build a one-story factory (fast speed), and the second phase of the factory will build a five-story industrial building (area many). In terms of funds, we will go to the Bank of East Asia for a loan. After all, Cheung Kong's monthly profit can reach HK$70,000 to 80,000, so we can continue to borrow money.

Cheung Kong Real Estate only started to formally invest in the second half of 1948. It invested almost 200,000 square feet of land (multiple plots). It was sold in 1950 and quickly sold to make other investments.

Although it is said that these lands can be doubled dozens of times in the future.

But Lin Zhichao understands the principle of "goods rotate" and needs to make funds move.

What's more, Hong Kong's real estate and land prices only started to rise in 1967, so there is no need to hold too many land and properties for the long term.

Lin Zhichao once again invited Jian Dongpu from the Bank of East Asia to inspect Cheung Kong Holdings. As the largest 'debt king' of the Bank of East Asia, Jian Dongpu is naturally very generous.

A medium-sized bank/bank in Hong Kong has a profit of almost HKD 400,000 a year, while a small bank only has a profit of HKD 1 or 200,000.

Lin Zhichao can provide Bank of East Asia with a profit of more than 200,000 yuan every year. In other words, he can also be regarded as the "God of Wealth" of Bank of East Asia; of course, it may be more reasonable to say it the other way around.

When the time is right, Lin Zhichao will definitely contact HSBC to increase the number of cooperative bank partners; it is not that he abandons the Bank of East Asia, but that his business is huge and he needs more choices.

"Amazing! These three machines have only been in Hong Kong for less than three months, and you can actually work 16 hours a day. It feels like a machine for printing money!" Jian Dongpu sighed.

Lin Zhichao handed over the financial statements for December last year to Jian Dongpu, and said: "Last month we produced 180,000 zippers, with a profit of HK$55,000. This month we received a large order from an American zipper merchant, one-time It is 12,000 meters of copper zippers, which can net a profit of 15,000 Hong Kong dollars; the important thing is that he has promised to cooperate with us for a long time."

Jian Dongpu was surprised. Lin Zhichao's zipper factory was almost as profitable as the Bank of East Asia.

What kind of speed of making money is this, which makes him feel unbelievable.

Opening the financial statements, Jian Dongpu was not only shocked, but also shocked.

After a long while, he sighed: "With just three machines, you are among the large factories in Hong Kong. There are only a handful of factories in Hong Kong that can earn HK$800,000 a year."

Lin Zhichao has a very rational mind and analyzed: "I am better than being the first to eat crabs, but I cannot be the only one eating crabs. Therefore, if I want to maintain this profit scale, I must expand the factory and order more machines." , to ensure better quality and reduce greater costs. Maybe only six machines will make this money in the future. After all, the competition pressure is high."

Jian Dongpu nodded and said, "Actually, I inspected your two factories and found that it's not just about the three machines. The success of Yangtze River Industry depends on your leadership. In this way, how much loan do you plan to borrow?"

Lin Zhichao immediately opened his mouth: "500,000 Hong Kong dollars!"

Jian Dongpu said unexpectedly: "It costs so much to build a factory?"

Lin Zhichao nodded and said: "I plan to invest in a large factory in Tsuen Wan, which requires at least 100,000 square feet of land. After all, the zipper market will increase exponentially. Even if someone else joins the competition, the annual profit will be one million Hong Kong dollars. I believe that the Yangtze River Industry can do it.”

In his previous life, Guo Desheng acted as an agent for YKK zippers, selling the products in Hong Kong and Southeast Asia, and was able to earn 1 million a year. Cheung Kong Industries had no reason to open a factory, and it was not as profitable as him as an agent.

Not to mention, Cheung Kong was also the first to try something new, and Lin Zhichao’s brains was not inferior to Tadao Yoshida’s.

After thinking for a while, Jian Dongpu said: "Your zipper factory has stable profits, and with the land mortgage, I loaned Yangtze River Industrial a total of 900,000 Hong Kong dollars, and I don't worry about not getting it back. What's more, your Yangtze Real Estate has plenty of cash. By the way, why don’t you use Changjiang Real Estate’s funds?”

Lin Zhichao said with a smile: "These are two companies. What's more, I think Yangtze River Industrial's debt of 900,000 is nothing, it is just a year's profit."

Jian Dongpu stopped talking nonsense. In his mind, Lin Zhichao was very trustworthy. Loans to Lin Zhichao were as safe as depositing money in the Bank of East Asia.

"Okay, I'll give you a loan in the next few days! According to the rules, Changjiang Industrial will mortgage it to us, including the land you bought with the money."

"no problem!"

His property was mortgaged, but he had no feeling of anxiety.

In the early stages of starting a business, you have to move forward bravely, because you won’t lose much anyway, and it’s easy to get back up again.

In the middle stage of entrepreneurship, you must develop without forgetting stability. Development is still the most important during this period, but stability needs to be considered.

In the late stage of starting a business, you must be steady and not forget about development. The first thing is to be steady, and only develop other businesses if you have extra money.