Chapter 105: Nine Dragon Warehouse: Food and Grass First
The Huangpu Group's meeting ended at noon. Liu Zhicheng called Hao Qingwen to his office and entrusted him with another private matter.

"My family currently has a villa in Repulse Bay. My parents have come to live there permanently. They like the scenery there, so I'll just let them live there. Please keep an eye out for me to see if there are any luxury houses for sale in Hong Kong Island."

His villa is located at No. 38 Repulse Bay Road. It is an old building, but the scenery is particularly beautiful. You can see the sea view and the garden is large, making it especially suitable for retirement.

Thinking about the inconveniences of living with Liu Yanxin and Yin Huifen in the future, Liu Zhicheng always wanted to find another place to live.

For the whole next day, Liu Zhicheng was busy handling the official business of the Huangpu Group. In fact, there was no important business, just a lot of documents to sign.

The next day, Liu Zhicheng came to the Yuen Long Industrial Park. As soon as he entered the park, he saw Wang Xingfa and two people on a tour.

"Mr. Liu, let me introduce him to you."

After that, Wang Xingfa pointed to a middle-aged man and woman beside him and said, "This lady is Atomi Nagasawa, the head of Yamaha Southeast Asia. She is here to discuss related business with the company."

The man seemed to be Nagasawa Atomi's assistant. Although she was from Japan, she could speak some Cantonese because she worked in Hong Kong.

In terms of etiquette, they still maintained the Japanese style. They lowered their heads and bent over to greet Liu Zhicheng.

Given Liu Zhicheng's current status and position, there is no need for him to talk to them too much.

But out of basic social etiquette, Liu Zhicheng invited them into the factory office building and talked while walking.

Liu Zhicheng briefly spoke to Nagasawa Atomi and then went to the third floor.

Liu Zhicheng has arrived at the meeting room accompanied by the management of Orange Technology.

After sitting down, Liu Zhicheng asked, "What business did Yamaha send someone to discuss?"

Wang Xingfa replied: "Yamaha has direct-sale stores for electronic appliances all over the world. They want to be the agent for the sales of Juzi Technology's Walkman and arcade machines."

“Where do they want to sell to?”

Although Liu Zhicheng has a layout of retail terminals in the global market, they are mainly concentrated in Europe and the United States, and there are still many blank markets in the world that have not been developed.

However, the agency position of Orange Technology is not given casually. It must be reasonable and cannot affect the existing agents. They can only be given a blank market.

Wang Xingfa said: "Mainly India and parts of the Middle East, these are blank markets for Orange Technology. Today Yamaha sent people to consult us, asking if we can entrust them with the development of these markets."

Liu Zhicheng responded: “We can give them these markets, and even the African market.”

Don't underestimate Africa. The economies of North Africa and South Africa are doing well now. Although there have been long-term unrest, there are many rich people there.

"Mr. Liu, I will continue to negotiate terms with them."

Liu Zhicheng ignored the matter and opened the annual report document in front of him and began to discuss Orange Technology's New Year plan.

In fact, it is mainly about the financial base. Orange Technology is Liu Zhicheng's cash cow, and raising funds depends on him.

This year, Orange Technology became very popular through "Contra", and the profit of the arcade game reached 5 million Hong Kong dollars, of which 3 million Hong Kong dollars were deposited in the form of US dollars in Citibank's overseas account.

Liu Zhicheng is very satisfied with the profits generated by Orange Arcade Games, although many of the game ideas come from himself.

Speaking of this issue, Liu Zhicheng took out a document from his briefcase and handed it to Wang Xingfa.

Wang Xingfa took the document and saw the words "Top Secret" printed on the cover, which made him a little excited. He opened it and saw "Super Mario" and "Astronaut Wars" written inside.

"These are two game plans. You arrange the development and launch them in 78."

Arcade games have been a gold mine in recent years and will soon be replaced by home game consoles. Liu Zhicheng will surely dig up the biggest bucket of gold.

Liu Zhicheng was flipping through the documents that recorded the development progress of the home game console (Famicom).

Currently, Orange Technology has registered a patent for the cross key and the related controller has been developed. If Liu Zhicheng had not made high requirements on the quality of the game console, it would have been on the market long ago.

But according to a document given by Huo Haiqing, it should be available for sale in the second half of next year, and arcade games will gradually decline.

Wang Xingfa listed an annual budget of 300 million Hong Kong dollars for the home game console, which includes R&D expenses, operating funds and future global promotion expenses.

After Liu Zhicheng looked at the budget table, he asked Huo Haiqing, "The processor for the Famicom is still purchased from outside for the time being. Can we develop and customize it ourselves?"

Liu Zhicheng has always wanted to develop his own chips, and he has already planned the production line, which will probably be scheduled for the year after next.

But it is not enough to just have a production line, you must have your own R&D capabilities. That is why Liu Zhicheng asked this question.

Huo Haiqing heard Liu Zhicheng asking, so he thought about it, put forward his own opinion, and said: "Mr. Liu, we have sufficient funds to develop any technological products, but the huge investment in chip research and development may not produce any results."

"At present, it is more cost-effective to purchase. Instead of putting our money and energy into this field, we should focus on making game software."

Liu Zhicheng had planned to purchase a chip production line, but due to the limitations of Hong Kong, he never took any real action. Moreover, chips are related to the future strategy of the entire Orange Technology, so investment is needed now.

Liu Zhicheng expressed his attitude by saying, "Our Walkman is a leading product. In order to maintain our advantage and not be strangled by others, I hope that the key components of the product can be produced by ourselves!"

Seeing that Liu Zhicheng had said it so bluntly, Huo Haiqing nodded and said, "Then let's set up a relevant research center in the United States first."

"Well, now we can produce magnetic heads ourselves, right?" Liu Zhicheng asked again.

"We have reached a technical cooperation agreement with Philips, and they will help us build a production line."

This is a precautionary measure. Currently, Orange Technology is just starting out and has only released two electronic products.

Although all of them are very popular, in the eyes of those old electronics giants, Orange Technology still seems to be insufficient.

Even if the giants create some obstacles for Orange Technology, it is only to plunder the product profits of Orange Technology.

Because Orange Technology has not entered the traditional electronics industry and has not competed with them for market share, it will not be hit by competitors for the time being.

If Liu Zhicheng starts investing heavily in chip design and development from now on, Orange Technology may be deliberately targeted in the future.

Therefore, we must comprehensively assess business risks and never act blindly. At present, Orange Technology is weak and if it is deliberately targeted by some G, it will suffer heavy losses in an instant.

The best solution is to conduct technological research and development first, and then build up technological reserves. It does not necessarily have to be put on the market, but can be used at critical moments.

Liu Zhicheng knocked on the table with both hands again and paused for a moment.

Liu Zhicheng gave Huo Haiqing instructions, saying, "Next year, set up a research group specifically for the research and development of chip technology. Give me a report."

Liu Zhicheng smiled and continued, "Also, let the Walkman research team set up a digital music project. The research and development direction is not actually the machine, but the music carrier."

Huo Haiqing understood immediately and said, "Mr. Liu, do you want to develop a new medium to replace vinyl and tapes?"

"correct."

Liu Zhicheng briefly introduced: "This medium is called CD. Now large electronics companies in Europe are developing this kind of thing. It may take a long time. I hope Orange Technology can keep up with their pace."

What Orange Technology wants to develop is a CD player, which will take about three years to succeed. During this period, he will first formulate the CD standard.

Thanks to the existence of the prophet Liu Zhicheng, Orange Technology has been able to avoid many detours, at least on the road of scientific research.

After the Orange Walkman was launched on the market, a total of 169 million units were sold in the global market. Currently, the profit of each player remains at US$30, and the profit has reached more than US$5000 million, which is equivalent to more than HKD 3 million.

This is the pure cash accumulated by Orange Technology, which Liu Zhicheng can use at any time. As for the R&D and operating funds of Orange Technology, there is no need to worry at all because they have new funds coming in every day.

He is about to stir up trouble in the stock market, and these funds will be his food and supplies.

Liu Zhicheng calculated in his mind that the funds needed to block Hutchison Whampoa might be as much as HK$20 billion. Even if the cost of 2% of the shares in the early stage was small, it would still be estimated to be HK$13 billion.

As for Hong Kong Land, which is currently launching a redevelopment plan for Central, its stock price is very strong, with its market capitalization remaining around HK$50 billion for a long time. If it wants to hold a controlling stake, it will require HK$25 billion.

Moreover, the market value of the Cheung Kong Company is HK$21 billion, so it would require around HK$10 billion.

If the above plan is to be realized, at least 48 billion Hong Kong dollars will be needed, and this is under normal circumstances. If a blocking war occurs, a huge amount of funds will be needed.

The funds he can currently use are only around HK$13 billion, which is completely an operation of a snake swallowing an elephant.

Liu Zhicheng was terrified and frightened at the thought of it.

After a moment, Liu Zhicheng smiled and said that at worst he would be left with nothing and start all over again.

Chigo International does not need to check the bottom of the market. Orders for tens of thousands of engines have not been consumed, so there is definitely no idle funds.

A few days later, York accompanied a vice president of Citibank to Hong Kong and had another secret talk with Liu Zhicheng.

The two sides negotiated for a whole day and reached a basket of loan plans in a pleasant atmosphere, with a total financing amount of US$8 million.

Liu Zhicheng used the newly acquired shares, as well as the shares of Juzi Technology and Walmart as collateral. Of course, the money was not all in one go.

Instead, it will be released in batches based on actual conditions, and the entire acquisition process must be handled by Citibank to ensure the safety of funds.

Liu Zhicheng showed his determination to fight to the death and agreed to Citibank's loan terms.

Everything is ready, waiting for the decisive battle.

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(End of this chapter)