The formal contract will have to wait until October, when the three parties sign it at the Canton Fair (Autumn Fair). Each province, city, and import and export company has targets to complete at the Canton Fair.
Therefore, everyone tacitly tried to sign the formal contract at the Canton Fair. This would not only complete the task and bring face to the team leader, but also provide a hefty bonus.
According to mainland China's practice, after this intention is signed, the factory will begin to implement the contract, so delaying the signing will have no impact on Wu Dawei or the operation of this business.
The letter of intent was signed, and Huanyu Trading Company had officially formed a business partnership with Huaxin Trading Company. Wu Dawei naturally received the invitation letter from the Canton Fair from Director Ye.
Of course, Huaxin Trading Company did not work for nothing this time. 10% of the export contract amount is their agency fee.
For Director Ye of Huaxin Trading Company, since this business is just an agency and the specific contract has been negotiated between the buyer and the seller, it is not easy to earn this money.
Their job is to send the company's customs declarers to the customs for customs clearance, and to settle accounts for the garment factory.
Huanyu Trading Company will eventually pay the contract payment to Huaxin Trading Company's foreign exchange account. The garment factory does not have a foreign exchange account. Even if Wu Dawei wants to pay, he cannot give it to the garment factory.
In theory, the export agency fee should be borne by both parties, but Wu Dawei felt that the advantage in the contract was too great, so he borne the fee alone.
The agency fee is not much, but the key expense is US dollars. Wu Dawei's move made the three garment factories grateful to him.
Huaxin Trading Company is a wholly-owned subsidiary of Huaxia International Trust and Investment Company. It is a company specializing in international trade and has import and export rights.
Huaxia International Trust and Investment Co., Ltd. was initiated and approved by Emperor Taizong personally and established in 1979 by the later Vice Chairman Rong. Its business covers many fields such as finance, industry and service industry.
Vice Chairman Rong is a member of the Rong family, a well-known big capitalist before liberation. Later, the family dispersed to various parts of the world, developing and branching out independently.
In addition to the development of Vice Chairman Rong's branch in the mainland, Hong Kong and North America are places where the Rong family has developed relatively well.
Since Wu Dawei returned to Hong Kong and took over Huanyu Trading Company, he began to think about how to run the company better.
Huanyu Trading Company is a Hong Kong company, backed by the huge market of the mainland, so Wu Dawei naturally made the mainland the focus of his research.
Through research, Wu Dawei discovered that due to mainland China's import and export management policies, his own company could not have direct contact with mainland companies, regardless of export or import, and had to go through a company with import and export rights as an agent.
Because Huanyu Trading Company does not focus on a certain industry, the projects it does are also diverse. Most of the domestic import and export companies are of an industrial nature. In the future, as the company's projects increase, the corresponding import and export companies will also increase.
From a management perspective, this is very unreasonable and a huge waste of resources.
Fortunately, he had been working in the capital for more than a year and knew that the bosses of China International Trust and Investment Company were members of the Rong family. And his college classmates were relatives of the Rong family in Xiangjiang. After graduation, they worked in the company of the Rong family in Xiangjiang.
Wu Dawei contacted his classmates and they all got together. It happened that the company where his classmates worked had business ties with Huaxin Trading Company. Huaxin Trading Company was exactly the comprehensive import and export company that Wu Dawei expected.
Therefore, through the introduction of his classmates, Wu Dawei went to the capital and established contact with Huaxin Trading Company before returning to China to go to the garment factory.
Wu Dawei and Director Ye traveled all the way north from Guangdong Province, and finally signed a letter of intent at the Jintian Garment Factory. After having a celebratory lunch together, the two took a car back to the capital.
Wu Dawei called the company to ask for the car. He wanted to send Director Ye back. After Sun Dahai heard about it, he asked Xue Haitian to drive the Mercedes-Benz. Anyway, the capital is very close to Jintian, although there is no expressway yet.
, but it only takes two hours to drive.
Wu Dawei and Director Ye ran together for more than ten days, and the relationship between the two was very harmonious. Wu Dawei accidentally mentioned the calculator, and Director Ye wanted to help him find a favor.
It was only around four o'clock in the afternoon when we returned to the capital. Director Ye had to go back to the company first and file the agency contract.
The car parked in front of the International Building outside Jianguomen. This is the office building of China International Trust and Investment Company, and most of its subsidiaries also work here.
Director Ye took Wu Dawei upstairs with him, returned to Huaxin Trading Company, and then found his friend, Director Cui of the import department, to talk about the calculator business.
Director Cui of the import department was also very considerate and agreed to purchase these calculators.
This not only gives Director Ye face, but he also knows that smuggled calculators and electronic watches are selling well on the black market. You can definitely make money by importing calculators.
These calculators and electronic watches are all three-no products produced by some small electronics factories in Xiangjiang, and the quality is very poor. These products were smuggled to Guangdong Province by ship, and then were smuggled by the first generation of rich people who were bold and dared to seize the opportunity to make money.
Buy them and take them to various places for sale.
The purchase price of calculators in Guangdong Province is eight yuan, the wholesale price in the capital is twelve to fifteen yuan, and the final retail price on the black market is generally twenty to twenty-five yuan.
In the 1980s, a group of people appeared on the streets of many cities: carrying military shoulder straps and wearing coats, walking through the streets, especially in front of schools and factories, selling calculators and electronic watches.
The batch of calculators Wu Dawei had in his possession totaled 500,000 backlog products when he acquired the company. Based on Wilkinson's cost at the time of purchase, the purchase price was $0.80 each.
Wilkinson Trading Company originally bought these from several large factories and planned to sell them to Europe, so the quality was very good. Later, due to policy changes, they were unable to sell them, so they were kept in a backlog in the warehouse.
Director Cui had seen the samples provided by Wu Dawei and knew the quality of the goods. At the same time, he accepted the price of three dollars per calculator quoted by Wu Dawei.
Director Cui did some calculations and found that based on the current official exchange rate of one U.S. dollar to 2.3 yuan, the purchase price of such a calculator would be less than 7 yuan.
The price of calculators on the market is more than 30 yuan, and they are basically sold out of stock. A high-quality calculator like the sample provided by Wu Dawei can be sold for 40 to 50 yuan without any problem, and the profit in the middle is very large.
The market mentioned here refers to regular state-owned stores such as department stores and Xidan Mall, not the black market.
The prices of goods in state-owned stores are set by the state and cannot be changed. Moreover, when purchasing many goods, you not only need money, but also a receipt, and you even need to present a work permit or a letter of introduction before you can purchase.
The black market does not have these restrictions. You pay with one hand, deliver the goods with the other hand, and you can also bargain. This is why the smuggled goods in the black market can sell so well even though they are of poor quality and have no guarantee.