sbdcsierra Chapter 190 Securing Investments
Chapter 190 Securing Investments
"Mr. Li, as far as I know, the market for video recordings is about to come to an end!"
Qi Tongwei looked at Li Le seriously and said, "After VCDs were introduced, video recordings were quickly replaced."
The main problems are that videotapes are troublesome to play, inconvenient to use, expensive, difficult to store, and the picture quality is not clear.
VCD discs use MPEG-1 compression to compress images, resulting in much better clarity than videotapes. They are also far more portable than videotapes, naturally driving VCRs out of business.
"Oh? Why does Qi Sheng say that?"
Li Le was very curious as to why Qi Tongwei said that.
The video recording market is booming right now, and it doesn't seem like it's going to end anytime soon.
"Mr. Li, I wonder if you've been following the latest developments in film and television technology in the United States and Japan..."
Qi Tongwei briefly explained the VCD research in the United States and Japan to Li Le.
"Qi Sheng, are you really an official from the mainland?"
Li began to doubt whether Qi Tongwei was a mainland official, since mainland officials wouldn't know about the latest technologies in the United States and Japan.
They have no opportunity to go abroad and therefore cannot possibly know about new technologies from overseas.
Li Le didn't believe that Qi Tongwei had relatives abroad. If Qi Tongwei did have relatives abroad, he wouldn't have come to him seeking investment.
Judging from Qi Tongwei's performance, Handong has no foreign investment.
Needless to say, Yunmeng County, where Qi Tongwei is located, is another story.
If there were foreign investment in Yunmeng County, Handong, they probably wouldn't even look at our meager resources.
Li Le only has two or three hundred thousand yuan in total. Even if he invests, he won't put it all in; he'll keep half of it as a reserve.
Used to mitigate risks.
Moreover, his amount of money is pitifully small compared to the millions or tens of millions that his Hong Kong businessmen invest in Lingnan, Shenzhen, Dongguan, and Guangzhou.
Qi Tongwei, however, said that they would accept an investment of even 1,000 yuan.
In other words, for Qi Tongwei and his people in Yunmeng County, what matters is his investment, not the amount of investment.
In other words, Qi Tongwei probably had no way of knowing about the new technologies in the United States and Japan.
How did Qi Tongwei learn about these technologies?
“Mr. Li, I have a friend in Beijing and relatives abroad.”
Qi Tongwei fabricated a reason: people in Beijing have great influence, which is not hard to understand.
"I see! So Qi Sheng means that once new film and television technologies emerge in the United States and Japan, video recordings will be quickly replaced by VCDs?"
Li Le then began to believe Qi Tongwei's words; people with connections in Beijing could indeed know about new technologies from abroad.
If those new technologies from America and Japan emerge and VCDs quickly replace video recordings, then he might be able to prepare in advance and get a share of the market.
"Yes, I'm telling you all this not only to encourage you to invest in our area, but also to explore collaborations in this field."
As you know, due to technological backwardness, many parts cannot be produced domestically.
However, it is not easy to buy from abroad.
Therefore, we need to find someone in Hong Kong to help us purchase the parts.
Of course, it would be even better if we could buy the equipment to produce the parts.
We are also actively preparing to take a large share of the VCD market.
I have high hopes for VCDs. in the country, video recordings are unlikely to reach every household, but VCDs can.
This means that VCDs will have a market worth tens of billions of yuan in the country.
If we prepare in advance, we might be able to seize a market worth billions.
Qi Tongwei, after all, was the head of a township and couldn't frequently travel to Hong Kong.
Biyun Technology will buy what he needs, but at the height of the conflict in Jingzhou, it was easy for American and Japanese companies to find out that Biyun Technology was a domestic investment.
If the supply of parts is cut off, his VCD production will be unable to proceed due to a lack of key components.
Having other channels can prevent situations where there are no spare parts available.
Qi Tongwei has decided to purchase parts through multiple channels and acquire as much related equipment as possible.
Only by being able to produce its own parts can VCD avoid being held back by technology bottlenecks and prepare for technological upgrades to DVD.
Qi Tongwei plans to first capture a large portion of the VCD market, and then take a significant share of the DVD market as well.
Use VCDs and DVDs to drive the development of important technologies such as domestic chips.
As long as we don't fall behind foreign countries, we can also be self-sufficient in the subsequent mobile phone chips.
"I can help with that too, but I don't have that much funding."
Li Le knew he had to agree to Qi Tongwei's request to invest in mainland China, otherwise he wouldn't be able to get on board with the VCD bandwagon.
However, he had limited funds. It was manageable to help Qi Tongwei buy parts, and he could afford to buy fewer parts.
If he were to purchase equipment, it would cost millions or even tens of millions of dollars, and he wouldn't be able to afford it.
"Funding is indeed a problem!"
However, if Mr. Li decides to invest with us and helps us invite several Hong Kong business owners to invest with us, I will give Mr. Li and the business owners who invest with us a chance to make a fortune.
Qi Tongwei thought that he might be able to use the Hang Seng Index in Hong Kong, which was expected to surge this year, to make more investments.
Li Le can't invest much on his own, but if more people join, the total investment will increase, perhaps reaching 100 million.
If the investment reaches 100 million, Lei Yaohua, Fang Zhigang, Qi Tongwei, Lou Xinghe, Zuo Junman and Lü Zixuan who came to Hong Kong this time will all receive huge benefits.
“I do know some people in business; I’ll ask them about it later.”
Li Le was tempted. Wasn't his plan to invest in the mainland all about making a fortune?
Qi Tongwei would naturally not miss other opportunities to make money.
"Then I'll have to trouble you, Mr. Li!"
Qi Tongwei said with a smile, "It's good that Li Le is willing to help."
Soon after, Lei Yaohua and Fang Zhigang arrived, along with Lou Xinghe, director of the Industry Bureau, Zuo Junman, director of the Commerce Bureau, and Lü Zixuan, director of the Foreign Trade Bureau.
"Secretary Lei, County Head Fang, Director Lou, Director Zuo, Director Lü, this is Mr. Li Le!"
Qi Tongwei first introduced Li Le to Lei Yaohua, Fang Zhigang, Lou Xinghe, Zuo Junman, and Lü Zixuan.
"Mr. Li, these are Lei Yaohua, the Party Secretary of Yunmeng County; Fang Zhigang, the County Head; Lou Xinghe, the Director of the Industry Bureau; Zuo Junman, the Director of the Commerce Bureau; and Lü Zixuan, the Director of the Foreign Trade Bureau."
Next, Qi Tongwei introduced Lei Yaohua, Fang Zhigang, Lou Xinghe, Zuo Junman, and Lü Zixuan to Li Le.
"Hello, Mr. Li!"
Lei Yaohua, Fang Zhigang, Lou Xinghe, Zuo Junman and Lü Zixuan shook hands with Li Le one after another.
Then the group sat down and discussed the investment.
Ultimately, Li Le decided to invest 100,000 yuan in Yunmeng County, Handong Province, to open a garment factory.
Back at the hotel, everyone was very happy.
Although Li Le's investment was only 100,000 yuan, that was Hong Kong dollars.
This was the first time people from Hong Kong had invested in Handong; they were making history.
With this achievement, their future is bright.
"Tongwei, is the Hang Seng Index you mentioned before really reliable?"
Lei Yaohua and Fang Zhigang called Qi Tongwei into their room.
They had no prior knowledge of the Hang Seng Index, a key indicator of the Hong Kong stock market, until recently.