Chapter 192 Earning Foreign Exchange for the Country

Li Changhe was not idle for the next two days.

Wells helped him find a professional law firm to help him apply for a global patent.

Of course, this matter cannot be completed in a short time, but Li Changhe is not in a hurry.

When the time came, the two men came to Jinyang Plastic Factory again.

In the office, Li Changhe and Weiersi also saw the samples made by Zhao Jincai and his team.

Honestly, it’s pretty good!
Because of the mold, the entire suitcase is square in shape, but the rounded corners are polished into curved corners, which makes it look relatively soft.

In addition, Zhao Jincai also put a layer of leather on the outer packaging of Li Changhe, which made it look more high-end.

"We tried the pull rod, but the plastic one was too light and not strong enough, so we used aluminum alloy, which is light and stable,"

"Mr. Vick, you can try!"

Zhao Jincai said flatteringly at this time.

Li Changhe pulled it up and tried it, and it felt really good, and the pulley below was also light.

"Boss Zhao, how much does this thing cost?"

Li Changhe asked with a smile.

Zhao Jincai heard Li Changhe's question and quickly pointed his finger: "About 65 Hong Kong dollars, and that's because a lot of leather is used."

"If we just produce the boxes without the outer packaging, and then do full production, the cost can be reduced to around HK$25 to HK$30."

In fact, the cost of this box alone is not that high. It’s mainly because the leather purchased from outside is expensive and the decoration inside takes a lot of effort.

"If you were allowed to go into full production, how many could you make in a day?"

"If it's this kind of exquisite leather suitcase, we can make about 300 a day. It's mainly because the outer packaging takes a lot of effort and requires manual labor."

"If it's ordinary suitcases, I estimate that we can produce more than 1,500 a day."

“No machines to improve efficiency?”

Li Changhe didn't know much about the industry, and he didn't know the current level of machinery and equipment in the world.

"This"

Zhao Jincai was a little confused. He was just the owner of a small factory in Hong Kong. How could he not know about the most advanced technology in the world?

In desperation, he looked at the engineer, Master Zhou.

Master Zhou said seriously: "Yes, there is a new equipment called blow molding machine, which can make the box body quickly."

"In addition, there are machines for drilling and trimming, and leather bonding machines. With such a production line, efficiency will be greatly increased, and only the final finishing will require manual labor."

Although Master Zhou is a quiet person, he has obviously prepared detailed information.

"How much does it cost to purchase this set?"

Li Changhe asked curiously.

Master Zhou shook his head: "I don't know about this. I've only heard of such equipment. I heard that the Swire Group uses the latest equipment to produce bottles for Coca-Cola."

"I estimate that this set will cost at least several hundred thousand Hong Kong dollars."

After listening to this, Zhao Jincai stood there and thought for a while, then gritted his teeth and said, "Mr. Vick, if you are willing to let us do the production, I can pay for the equipment."

He has only saved a few million yuan in total now, and originally planned to move to a bigger house and buy a small house for his mistress.

But now that a great opportunity was before him, Zhao Jincai felt that he should give it a try.

"Boss Zhao, how about we cooperate?"

"I will buy shares in your factory and invest some money, and we will cooperate to make suitcases like this."

"Name your price!"

Li Changhe said with a smile.

After listening to this, Zhao Jincai was a little confused.

The other party wants to invest?

But his factory is actually not worth much.

It is a small factory, not a big enterprise, and it relies on connections to provide some products to Global Shipping.

The factory's annual revenue is actually only two to three million. After deducting costs, the profit is actually only about four to five hundred thousand.

The other party also wants to invest in such a small factory?
"Mr. Vick, how many shares do you need?"

Zhao Jincai asked hesitantly.

Although the factory is not big, it is his after all. If Li Changhe takes the lion's share and becomes the boss, he will definitely not be willing.

But he didn't want to give up this opportunity. He felt that cooperating with Mr. Vic would definitely be of great benefit.

So after some hesitation, Zhao Jincai wanted to see what Li Changhe's appetite was.

"I don't care. You can put as much as you want, as long as the price is right!"

Zhao Jincai's factory is actually not important to Li Changhe. The OEM factory he actually chose is not in Hong Kong Island, but he needs Zhao Jincai's factory to provide him with mature skilled workers.

Wells told him that although this guy's factory is not large, the workers are quite good, which is why they can enter the global shipping procurement chain. This plastic factory has certain strength.

After hearing what Li Changhe said, Zhao Jincai thought about it in his mind, and then said carefully: "Mr. Vick, you pay 40 yuan, and then I will invest another yuan. Let's invest million yuan in the new factory, and I will give you % of the shares, okay?"

His factory is not listed and he holds 100% of the shares. Even if he gives 40% to Li Changhe, he is still the absolute majority shareholder.

Li Changhe estimated in his mind that the annual profit of such a factory might be only three to five hundred thousand yuan. According to the profit estimation method, a simple estimate of its value would be between one and a half million yuan and two million yuan.

He invested an additional 500,000 yuan and gave Li Changhe 40% of the shares, which was considered a conscientious act.

Of course, the land of the other party’s factory will probably be worth a lot of money in the future, but Li Changhe doesn’t care about that.

"Okay, but I have another request. I might transfer some workers to other factories to provide guidance."

"Other factories? Can I ask where they are?"

"You are on the other side, the mainland!"

"This year, the United States established diplomatic relations with the mysterious East. We were allowed to invest and build factories there. This is why I came to Hong Kong Island."

"The labor and land there are too advantageous."

"Of course, I envision two directions. High-end suitcases like those made by Master Zhou will be made by Boss Zhao's factory."

"We mainly target the high-end market, and what we sell is nobility."

"In mainland China, I will ask them to produce ordinary suitcases, because our target is the whole world, which may require hundreds of thousands or even millions of suitcases every year."

"It's difficult to maintain production with just your factory."

Li Changhe said calmly.

The main purpose of Li Changhe making the suitcase is actually to invest in the mainland.

On July 1 this year, just before Li Changhe set off for Hong Kong Island, the state had just promulgated the Sino-Foreign Joint Venture Enterprise Law.

It is stipulated here that foreign capital can invest using industrial property rights, but this industrial property right is only authorization, not a patent.

In fact, up to now, the country has not formulated a patent law because the patent law, in a sense, conflicts with the socialist system.

The essence of patent law is private ownership, while socialism emphasizes public ownership, so patent law in this era is in conflict with national philosophy.

Li Changhe didn't know that the country was already studying patent law.

He just wants to use this thing to help the country train a group of business talents, familiarize them with business pricing, including letting them understand the value of world patents.

For a long time in the future, domestic patents will not be valued, just like the famous VCD, which was obviously invented by Chinese people, but was patented by the Japanese.

This is certainly due to the founder's own problems, but it is also related to the country's patent restrictions.

When Li Changhe was searching for information in his previous life, he saw that domestic patents had been hovering between the unitary system and the dual system for a long time.

The so-called unitary system is the patent law system in Europe and the United States.

The dual system is actually a patent law system explored by the Soviet Union and Eastern Europe, which is divided into external use and domestic use.

This model is to recognize foreign patent laws and implement an internationally accepted system for foreign companies' patents.

However, a reward system is implemented for domestic enterprises and individual patent inventions, and the patent ownership belongs to the collective or the state and is free for public use internally.

This dual-track system actually affects a large number of people, causing many people to not care about applying for patents even if they have inventions, because they themselves don’t understand whether their inventions belong to the collective or the state.

The VCD of that year was influenced by this kind of consciousness, and then it allowed Bookmaker to find a loophole in the dual-track system and obtain the patent rights.

Li Changhe couldn't remember when the Patent Law was revised, but he could make the country pay attention to it by making money.

Li Changhe was going to use the suitcase to earn foreign exchange for the country, so that they could see how a low-cost product could generate high profits with the support of patents.

Li Changhe thinks that this thing is not expensive at all if it is priced over a hundred dollars now. For example, the high-end trolley cases produced by Zhao Jincai's factory, Li Changhe plans to start at five hundred dollars.

Regardless of whether you want to buy it or not, with the support of the patent, Li Changhe will definitely be the only one in a short period of time.

Even in the era when the patent expired, there were still high-end trolley cases costing tens of thousands of yuan each.

Li Changhe feels that his current pricing is already very fair.

Besides, the main group that this thing is currently targeting is actually the high-income group, pilots, flight attendants, and the traveling middle class and wealthy class.

The portability of this thing is definitely much more convenient than the current suitcases.

After listening to Li Changhe's words, Zhao Jincai thought about it and agreed.

Today he talked with engineer Master Zhou. This thing is really very convenient to use. It is very light to carry luggage in your hands when you go out, unlike those suitcases you carry.

It not only saves energy, but also saves time.

Both people have a strong desire to buy, which actually represents the market.

Even people like them have the desire to buy. Think about the people who travel frequently on business, as well as the flight attendants and pilots. Don’t they have a greater demand?
And these people have one thing in common: they are not short of money.

"No problem, Mr. Vic, we can specialize in the production of high-end suitcases in the future."

Zhao Jincai did some calculation and immediately agreed.

They are just a few workers. They can be transferred away at will. As long as the factory exists, he can train more at any time.

(No more)
(End of this chapter)