Chapter 969 Earn Money in the Mainland, Spend It in the Mainland

The strange stalemate and shock phenomenon in Xiangjiang's real estate became more and more obvious in September.

At the beginning of September, real estate prices suddenly dropped. Three pieces of land sold at auction in the land market hit new lows in succession, and one piece of land was even taken back by the government.

But in sharp contrast, it is the property market in Xiangjiang.

On September 11, New World Development opened a new property about 1,500 meters east of Victoria Peak. This property is targeted at high-end business people. The price is 1,800 yuan per square foot, which directly sets a new record for apartment properties this year. The highest price also set a record for the most expensive apartment price in the history of Xiangjiang.

Except for a few villa areas and large-area houses on the mountain, which are more expensive than it, this property is the highest.

But Zheng Yutong also had a bitter look on his face.

The price he got for his land at the end of last year was very high. From the end of last year to now, construction workers' salaries, material costs and other expenses have increased by more than 50%.

I originally thought that opening at 1,500 would be enough, but now the gross profit margin from opening at 1,800 will not exceed 20%.

After excluding so many additional expenses, he was satisfied with basically guaranteeing a 5% net profit.

You know, last year and the year before last, New World Development's average gross profit margin was more than 35%!

You have to work overtime and do it quickly in order to have such a 5% profit. Otherwise, if the price of various artificial materials continues to increase, whether you can maintain your capital will be a problem.

There are many real estate companies in the same situation as Zheng Yutong.

They either chose to raise the price, or simply delayed the push and saw what happened.

It's not that they deliberately want to raise prices significantly, but that various forms of Xiangjiang force them to raise prices. This is the general situation.

To this end, real estate developers have lobbied the government desperately, and then launched various media offensives to tell their stories of their difficulties.

Their purpose of doing this is of course not to explain to the people, but to explain to the government, "I am suffering, it is not easy for me, you, old man, must not make any more policies! Otherwise we will collapse." ah!"

As everyone knows, the government has no intention of suppressing real estate developers at all.

The situation has become obvious.

Developers hold a large amount of undeveloped land, and many small and medium-sized investors also hold more than one house. Everyone uses houses as tools for speculation.

So the price cannot drop at all.

But at the same time, new land continues to enter the market, and prices have continued to drop.

Once developers who have newly acquired land use low costs to squeeze the real estate market, property prices will definitely fall.

Once there are more choices, people will definitely choose cheaper housing.

Then real estate developers and small and medium-sized real estate speculators who have all their funds locked up will definitely cause panic selling.

By that time, Xiangjiang's property market will definitely plummet, possibly down to two-thirds of its current level.

Therefore, the government is not in a hurry. They are waiting for the day when the real estate market adjusts again.

Of course, they will not relax the current binding measures in the slightest, and will also hammer them from time to time to prevent the real estate market from rising too high during this period, which will cause greater pain in the future.

After all, excluding the New Territories, the average housing price in Hong Kong has reached 1,300 yuan per square foot, which is really too high.

Yin Jun also saw the current high housing prices, but he did not express any opinions on it. It is only one year since the price plummeted, so we will wait and see.

It's better to do the things at hand first.

What has he been busy with these days?

Of course, it is related to Kirin Electronics, which is booming in the mainland.

As of mid-September, Kirin Electronics' Kirin radio recorders have been on sale for a month.

If people initially bought it for the reasons of "cheap price", "good color and appearance", and "produced by Xiangjiang Company", then now they have to add another one.

That means the quality is very good!

When everyone buys it and listens to the tape, they can immediately feel the difference from the previous tape recorder.

Not to mention that it is incomparable to the domestically produced ones, compared with those Japanese, European, and American cassette players that cost thousands of dollars, they are no different.

Some very fashionable audiophiles have also conducted some detailed experiments to compare the sound quality, playback smoothness, extreme usability and other aspects, proving that Kirin cassette recorders are comparable to mid-range cassette recorders from Europe, America and Japan. In comparison, it's not bad at all, but there is still a certain gap compared to those high-end cassette players.

But no one cares anymore.

Price, the factor that Chinese people care about the most, is actually right in front of them.

The price of your Kirin cassette player is only one-half or even one-third of that of foreign cassette players. It is only a little more expensive than domestic ones. Such a cassette player cannot be called cheap and high-quality, so what other cassette player can be called cheap? Where's the cheap stuff?

Even those enthusiasts who got rich first feel that if ordinary people play cassette players, they can buy Kirin cassette players and use them for three to five years.

In 1981, those who could play cassette players were, without exaggeration, just like the group of people who played mobile phones in the Mainland around 1996. They were all very trendy and had a certain financial strength.

In the past, there was no choice but to buy an ordinary domestic cassette player, or bite the bullet and buy imported goods.

But now that there are such good choices, of course they are willing to choose Kirin cassette recorders!

These people have always been the trendsetters in the city.

Seeing that they all bought Kirin cassette recorders, those young people who don’t have a lot of money, but they always have something if they squeeze in and get together, will naturally want to follow suit, and then they will feel like they have become a wealthy trend. People are the same.

This is the most important reason why the sales of Kirin cassette recorders have continued to receive good news this month!

In one month, a total of 800,000 Kirin radio recorders were sold, with total sales reaching an astonishing RMB 200 million! Converted into Hong Kong dollars, it was actually as much as 660 million.

Although it's just sales, with the various parts and labor being so cheap in the Mainland, everyone knows that Kirin Electronics' profit margin must be high!

But how high it reached, no one could tell.

In fact, only Yin Jun, Le Yiling and Huo Jianning know this number.

After excluding all expenses, including taxes, patent fees, etc., Kirin Electronics' net profit is 52%! !

Don’t doubt it, it’s just that high!

It’s almost as profitable as Apple’s mobile phone 30 years later! Moreover, the profit margin of several Apple mobile phones has not reached 50%, only around 43%.

The reason for such high profit margins lies in the extreme inequality in construction costs and selling prices.

In terms of selling price, the cheapest Kirin cassette recorder is the sum of four months' salary of mainland people. What does this mean in Hong Kong? That’s about 7500 for a radio cassette player! !

But the Japanese-made cassette recorders in Xiangjiang only cost more than 300-500, which is less than one-third of a month's salary.

It should be said that the current living standards of mainland people are not ridiculously low. Their average salary is still enough for a family to live.

It's just that these electronic products are considered luxury goods in the mainland, so they are ridiculously expensive, but no one is making any noise.

Since prices in the Mainland have not increased with the consumption of luxury goods, it can also be understood that the costs of parts and components, salaries, and various water and electricity expenses in the Mainland are also ridiculously low.

The lowest level of workers only earns 80 yuan a month, while the highest level only earns 500 yuan a month. The average salary does not exceed 200 yuan.

With so close to 10,000 workers, the monthly salary is only 2 million yuan and 6.6 million Hong Kong dollars.

If replaced by ordinary workers in Xiangjiang, they would employ around 3,500 people at most.

Jiangnan Province has given many discounts for water, electricity, etc., which is basically equivalent to one-tenth of Xiangjiang's.

More important is the price of parts.

Today's factories in the mainland are far from the rapid decline caused by the rapid economic development. The quality of today's state-owned electronics factories is still very safe.

Kirin Electronics orders thousands of parts from mainland factories, from more than 150 factories, and has very strict quality inspection standards, but the yield rate remains above 99.5%. This is a very remarkable technical capability.

Perhaps this has something to do with the fact that the order came from the Xiangjiang Company, but the price of such high-quality parts is only one-fifth of that in Europe and the United States, which really makes Huo Jianning a bit stunned.

Such an overall calculation directly created a miracle of 52% profit margin.

So this month, the profits brought by Kirin radio recorders to Kirin Electronics were as high as 343 million Hong Kong dollars. Huo Jianning, who had been very optimistic about profits before, couldn't help but sigh again that Jun Shao is indeed Jun Shao, in this remote mountainous area You can actually get such high profits from doing business!

It is a pity that this money cannot be sent back to Xiangjiang for the time being to repay the debt of Kirin Group, which has a loan of US$3.7 billion.

Because seeing that Kirin Electronics actually made so much money in one month, the mainland also panicked.

They are not afraid that Yin Jun will earn RMB, but they are afraid that Yin Jun will exchange RMB into US dollars or Hong Kong dollars and return to Hong Kong.

Especially US dollars.

The current exchange rate of the Mainland to the U.S. dollar is a very unruly 1.53:1, which means that 1 U.S. dollar can only be exchanged for 1.53 RMB.

If Yin Jun exchanges it at this price, he can exchange it for 131 million U.S. dollars. Not only will the mainland lose his pants, but he will also have to endure a sharp decrease in U.S. dollar foreign exchange reserves!

That’s 131 million a month, and nearly 1.6 billion U.S. dollars a year!

At present, domestic foreign exchange savings are less than 200 billion U.S. dollars. Can Yin Jun be given such luxury?

We wish we had more US dollars, so how could we be willing to give them to others?

Therefore, Zhang Hongbing went to find Yin Jun and expressed Mr. Xiao's hope that Yin Jun could help the mainland.

This is really what Mr. Xiao said, and he even wrote a letter to Yin Jun.

Yin Jun took Mr. Xiao's letter and read it over, and he really had nothing to say.

Even Mr. Xiao came forward, how could he not give him this face?

Not to mention that his good life is thanks to Mr. Xiao's positive changes, but if the Kirin Group wants to develop in the mainland in the future, it will need to maintain close relationships with the people above it. Yin Jun cannot ignore this request.

It was because Li Chaoren gave Mr. Xiao face at the critical moment that he had a high status in the mainland for the next 30 years, and he was successful in all kinds of business!

Therefore, Yin Jun made a decision directly and promised that within 10 years, all the money earned in the mainland would not be transferred out of the mainland, but all money would be spent in the mainland.

At most, if Yin Jun does business in Xiangjiang in the future, he hopes to use the money to buy things in the mainland and sell them to Xiangjiang.

To put it simply, Yin Jun hopes to buy mainland agricultural products or products from mainland factories when he needs them, and then resell them to supply Xiangjiang, allowing him to make money in Xiangjiang.