1RomanceEB Chapter 42 Hungry Dogs Licking Leftovers
Chapter 42 Hungry Dogs Licking Leftovers
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After a long silence, Henry Keswick asked, "You have connections with the Zhou Yongtai family, right?"
Without the advice of professionals, it would be difficult to calculate such accurate data.
The price includes almost all costs such as freight, insurance, customs duties, quarantine, risks, and costs of primary, secondary, and tertiary industries, with 55% of the price being fixed at the resale price in Australia.
"How is that possible?"
Chen Guanjiang hurriedly said, "I've always been on your side. I swear to the fan, you have no shame! Hong Kong people don't lie to foreigners."
Henry Keswick didn't believe a word that came out of that dog's mouth and directly quoted a price: "HK$1300 million for all the cows. I need to discuss the warehouse and cold chain in a meeting."
"no problem!"
………………
10 breeding male dairy cows, HK$24;
267 calves under six months old, HK$52;
1892 dairy cows of various production levels, with a total output value of HK$2270 million;
The total price should be HK$2346 million. Charging HK$1300 million is already a very favorable price, but it also reflects a very ironic reality.
The main business of the dairy company is selling milk. Its core asset, dairy cows, is only worth tens of millions of Hong Kong dollars, which can be sold at a discount of up to 50%. It is even less than the ice room chain, warehouses and cold chain transportation.
The market value is propped up by land in Causeway Bay and Pok Fu Lam. Even the land in Tsuen Wan Ranch is nothing. Financial capital has already broken away from the role of a service provider to the real economy and become the controller.
With short-term loan rates currently at 5.75% and long-term loan rates at 3.55%, the real economy of agriculture can still function.
When short-term loan interest rates reach 8.5% and long-term loan interest rates reach 6%, agricultural loans will be wiped out as much as they are.
However, as society continues to develop, all industries are pursuing growth. Real estate and finance, which are backed by assets, are less risky than real industries, and the loan amounts and interest rates they can obtain are more favorable than those of real industries.
Money will eventually flow to financial capital;
However, the real economy is the backbone of the economy!
After waiting for an hour, Henry Keswick returned and said, "I can sell you 120 refrigerated motorcycles, 30 refrigerated trucks, and a 3000-square-foot cold storage warehouse."
They sold off a large number of cold storage warehouses, kept all ambient temperature warehouses, and disposed of all refrigerated electric bicycles.
Chen Guanjiang knew that the Jardine Matheson Group was preparing for new retail, and of course he was also very envious of this commercial and distribution system, the industry that is closest to consumers.
The birth of Carrefour in 58 and the rapid development of Walmart in 62 both confirmed the development prospects of large-scale chain modern supermarkets proposed in the 30s.
But now is not the right time!
Two giants in Hong Kong are eyeing the large-scale chain new retail supermarket industry: Wellcome Supermarket, backed by Hongkong Land Group, and ParknShop, one of the four major British trading companies.
Among them, Hongkong Land Group is about to acquire Dairy Farm's transportation system, and its parent company, Jardine Matheson, is the general agent for imported cars in Hong Kong, both of which have strong warehousing and transportation systems.
Hutchison Whampoa, on the other hand, is a complicated case. It has a slew of almost every industry in Hong Kong, including warehousing and logistics, and its subsidiaries are in complete disarray.
Although Chen Guanjiang is a rising star in Hong Kong's newspaper industry and has strong cash flow support, his industrial structure is as thin as a cicada's wing. How dare he compete with these two giants?
Moreover, the real opportunity for the explosion of new retail has not yet arrived.
Poor inventory management and long checkout times are the two biggest weaknesses of new retail. Let Jardine Matheson and Hutchison Whampoa compete for it first, and sooner or later they will use it as a springboard to fight back in new retail.
"How much?"
"HKD 400 million!"
"Too expensive! I can only offer HK$200 million!"
"You stupid dog, don't go too far!"
Henry Keswick immediately roared, "Honda motorcycles cost HK$5000 each, and the refrigeration equipment modification will cost at least HK$3000 more, making it HK$8000 per motorcycle! That's HK$96."
"Each Toyota Dyna truck costs HK$5, plus an additional HK$5 for a large refrigeration unit, bringing the total cost to HK$10 per truck, for a total of HK$300 million."
"A cold storage unit costs HK$200 per square foot. How much would 3000 square feet cost? All added up, it would be HK$456 million. Is there a problem with my quote of HK$400 million?"
"No problem, but... it's still expensive."
Chen Guanjiang sighed deeply and said, "If it doesn't work out, then forget it! I'm not raising dairy cows anymore..."
"Okay! HK$200 million!"
Henry Keswick agreed through gritted teeth, becoming increasingly convinced that the stupid dog must be connected to the Zhou Yongtai family.
Disagreeing is not an option.
The Milk Company used 120 refrigerated motorcycles because Hong Kong has many mountains and a dense population, and motorcycles are used for short-distance transportation for convenience.
Refrigerated trucks can be sold to Australian farms? In such a vast country as Australia, who the hell delivers milk on a motorcycle? Are they going to dismantle them and sell them for used motorcycle parts?
Cold storage warehouses are limited by land costs in Hong Kong, resulting in scattered, ultra-small cold storage facilities built, using only small refrigeration equipment. These small refrigeration equipment are so small that even Australia wouldn't want them.
Selling the whole package to Chen Guanjiang would at least get you a decent price, but selling it piecemeal would be no different from selling scrap metal. Being able to recover some of the costs is better than losing everything.
Chen Guanjiang knew this, which emboldened him to make such an exorbitant demand. He continued, "Henry, that's very generous! In that case, let's make the factory and equipment the same price!"
"I...I've had enough of you!!"
Henry Keswick roared again, "The cows, warehousing, transportation, and all the factory equipment—one price! HK$1700 million, or get out!!"
"Yes, yes, yes! Please don't be angry, it's not worth ruining your health if you make this silly dog angry, is it?"
Chen Guanjiang continued with a fawning smile, "We've agreed on 1700 million. I'll go buy the land and build the factory right now. Once your acquisition is successful, we'll sign the contract, right?"
"Get out, get out of here now!"
"Don't be angry, I'll leave right now, with my tail between my legs~"
Henry Keswick told Chen Guanjiang to get lost, but he left the office first, unable to bear sharing a room with this idiot any longer.
It's important to know that the milk company was forcibly acquired and had no intention of closing down. In addition to producing fresh milk, it also produces ice cream, butter, and cheese, covering most of the dairy product supply chain.
Vacuum pumps, pulsers, refrigerated tanks, steam sterilization equipment, chemical sterilization equipment, rotary machines, bottle refrigeration machines—all kinds of related equipment, big and small, are available. None of them were purchased with money.
Moreover, the dairy company also introduced the most advanced pasteurization machine and the most advanced ice-making equipment. Although they were all second-hand, they could still easily sell them for HK$300 million.
The painful thing is that Hong Kong can't take it all in, and when it tries to sell it abroad, it has to consider depreciation, tariffs, transportation, and time costs. Otherwise, how could it be repeatedly extorted by this shameless idiot?
Fortunately, the milk company has not yet been acquired;
Fortunately, there is still time before the formal closing.
Prior to this, Jardine Matheson had ample time to deal with the dairy cows and equipment, which could be seen as a small revenge for the losses caused by this foolish dog selling off its Hongkong Land shares first.