We are all reborn, who wants to be the richest man?
Chapter 318 High-Level Meeting
New Year's Day is approaching, and Luo Nianzhong, who just spent Christmas with his family yesterday, came to the group headquarters.
"What's going on? Old buildings are being demolished and demolished everywhere along the way. Are the property owners in Kowloon crazy? Are they going to raze this place to the ground?"
"Haha, Chairman, you may not know that land prices in Kowloon have skyrocketed recently, especially the land around us. The price is close to that of Central."
Luo Nianzhong was surprised by Niubijian's words. The land prices around the Far East Headquarters have always been very high, but don't you think it's an exaggeration to say that it's almost as high as Central?
That's Central, the most prosperous business district on Hong Kong Island.
Luo Nianzhong thinks it is reasonable for the land around the Far East Group to reach 7% to 8% of the price of Central. It is almost exaggerated to compare with Central.
Seeing Luo Nianzhong's confusion, Niubijian explained.
"Chairman, don't forget that the Hong Kong Island International Airport will be put into use soon."
"Oh, I'm telling you. Look at my brain, I've even forgotten about it." After speaking, Luo Nianzhong also patted his forehead.
Hong Kong Island International Airport is scheduled to be officially opened on January 1 next year. There are still five days left. Governor MacLehose will not only attend the opening ceremony, but also celebrities from the political and business circles of Hong Kong Island have been invited, including Luo Nianzhong.
However, Luo Nianzhong doesn't plan to go. In recent years, he has been avoiding participating in these activities unless it is something that is very meaningful to him or cannot be avoided.
However, Luo Nianzhong's non-participation does not mean that Far East Group will not give face. Not only Welch will lead many senior officials there, but Robert, the Luo family's financial steward, will also attend.
You must know that the Hong Kong International Airport Family Office is the majority shareholder and is theoretically managed by Robert.
Hong Kong International Airport is on Lantau Island. What does its opening have to do with land prices in Kowloon? That's a big deal.
The opening of the Hong Kong International Airport on Lantau Island means the suspension of Kai Tak Airport, and the height restrictions in Kowloon will also be lifted accordingly.
Why is it that the Yau Tsim Mong area, which was also the first batch of land developed on the Kowloon Peninsula, has become more luxurious and developed than the East Kowloon area over the years? Isn’t it because of the height limit order?
Places such as Mong Kok can build skyscrapers to maximize the use of land.
But what about East Kowloon? Not to mention skyscrapers, there are no buildings over thirty floors.
Now that the height limit order is foreseeably coming to an end, those old buildings occupying large areas of land will naturally become popular.
It is certain that there will be many high-rise buildings in the future. With the Far East Headquarters located here, there is no need to worry about the commercial value, which naturally arouses endless enthusiasm among developers.
In fact, when the Hong Kong International Airport was first settled, developers were targeting the land here, but no one was a fool, as they all knew that the price of land here would rise in the future.
Now that the dust has settled, large-scale demolition and reconstruction work has naturally been put on the agenda.
Businesses with greater strength will seek cooperation and invest in land, while businesses with less strength will start to wait for a price, hoping to sell at an ideal price.
Now it seems that Li Bancheng was very wise to borrow money to acquire a large amount of land in Ho Man Tin. If the commercial value here further increases, the properties in the Ho Man Tin residential area to the north will become more expensive.
"It seems that we may be squeezed into a corner in the future, living a life of being dependent on others and inferior to others."
Luo Nianzhong's joke made everyone in the conference room burst into laughter.
Being under someone else's roof and being inferior to others?
Even though you are a skyscraper, you are just a foil in front of the Far East Group.
However, one thing is worth being happy about, that is, the Far East Group's Bauhinia headquarters land has increased in value a lot.
"Okay, let's start the meeting."
After the joke, the last high-level meeting of the Far East Group before the annual holiday began.
The first, of course, is the performance reports of each company. This year's Far East Group's performance is undoubtedly gratifying. The total profit exceeded 100 billion US dollars for the first time, but this does not allow for the repayment of debts.
This is a period of expansion, and every year the group allocates large amounts of funds to acquire and build factories for the following companies.
Companies like Watsons don't need to worry about the group. Even if they need funds, they can borrow large sums.
But this is not possible for many companies, such as the battery project. This company named Kirin Battery, which was established along with mobile phones in the Han and Tang Dynasties, is simply going forward with debt.
The profits generated by those battery orders are not enough to fund the construction of factories around the world, let alone the huge expenditures spent on researching lithium batteries.
Up to now, the lithium battery research and development project alone has consumed more than 200 million US dollars.
If all losses are included, the Far East Group's allocation to Kirin Battery this year alone will exceed US$500 million, not counting large amounts of borrowing. The ability of this gold-swallowing behemoth to eat money is really staggering.
If Luo Nianzhong hadn't known that this track would be worth hundreds of billions or even trillions of dollars a year in the future, Luo Nianzhong wouldn't be so willing.
Kirin Battery is a latecomer in the battery industry, and it has to be willing to invest heavily if it wants to achieve success.
Even though Kirin Battery’s nickel-cadmium batteries are now leading the world, in the future field of lithium batteries, the research and development of Kirin Batteries is already several years later than that of beautiful countries and island countries.
Another one is port infrastructure. These are projects with long profit and payback cycles. Although loans can be obtained, it still costs a lot of money.
Far East Real Estate and Far East Port Management Company can be said to be one of the few companies in the Far East with high debt ratios.
"You all know that the rabbit side is further opening up, and that will be our main battlefield next.
Especially for Watson Group, you are the main force in the early stage.
Judging from the current consumption level there, Watsons' products are the most acceptable.
There are also brands over there. If you think they are good, you can definitely acquire them or make joint ventures.
We are here to capture the market, and such a big market cannot allow us to be alone. This is unrealistic."
Li Xiang nodded to express his understanding.
"Don't worry, Chairman, I know what to do.
What happened in the Arctic Ocean has changed my mind drastically. No one can say whether there will be the next trump card waiting for us."
Since acquiring the Arctic Ocean, Watsons has started to promote it after achieving satisfactory results in the early stage.
Now Arctic Ocean ranks third in the field of carbonated soda after Coca-Cola Company and PepsiCo, accounting for 17% of the global carbonated soda market share.
Especially in Europe, they really like this soda, which has few additives and plays a health role. Watsons is also the group with the largest share of the beverage industry in Western Europe.
"I heard that the Arctic Ocean will start a global factory construction model next year?"
“Yes, although two factories have been built in Guangdong Province, the production speed is still far behind the sales volume.
Not only are rabbits often out of stock, we also have no capacity to further expand our production in Eastern Europe, Northern Europe and South America, so it is urgent to build factories in Europe and South America."
"Okay, but building factories overseas is the responsibility of building factories overseas, so don't leave the craftsmanship to me.
What this soda needs is real ingredients, don’t turn into that kind of pigmented drink to damage the brand.”
Quality, this is something Luo Nianzhong has always emphasized, and it still needs to be emphasized.
"Don't worry, Chairman, in order to cope with the labor costs in Europe, we have decided to adjust prices for the Arctic Ocean in the European and American markets.
From now on, Arctic Ocean will focus on a mid-to-high-end brand, which will completely differentiate it from products such as Coke."
Luo Nianzhong nodded with satisfaction at Li Xiang's decision. He supported it.
Regardless of whether the decision is right or wrong, Luo Nianzhong needs to see his enthusiasm for change.
If the top management of a company loses their enterprising spirit, the company will soon fall into decline.
“Technology is the primary productive force, which is what our group has always insisted on.
I plan to start strengthening cooperation with schools this year. Do you have any suggestions? "
After talking about other industries, the final topic must be for Luo Nianzhong’s biological son, the technology industry.
"That's what I was going to say," Welch nodded.
“In the past two years, we have gained a lot from our cooperation with Rabbit and some universities in Southeast Asia. We have gained a large number of low-level researchers, which has also greatly saved costs.
I have already asked people to conduct a large-scale investigation around the world. Those schools that have certain educational capabilities but do not have money for research and development will make reasonable use of arrangements and archives. This can become our continuous talent reserve in the future.
Not only the semiconductor industry, but also Watsons.
Talents in the global semiconductor industry are concentrated in these developed regions, and talents in food research and development and chemistry are found in many areas.
I have told President Li Xiang about this, and Watsons will also use the talent database we have established to increase investment in this area."
Unexpectedly, Welch had already started making arrangements. It seemed that he was being sentimental. How could such a person not think of this?
This is good. You don’t have to worry too much about the development of the group, and you can focus more energy on other places.
After that comes the annual summary of each company. While listening to the report, Luo Nianzhong sometimes gives some suggestions, most of which meet his requirements.
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