Chapter 66

"Mr. Li, our Standard Chartered Bank has upgraded your company to a VIP client. If your company has any financial needs in trade, Standard Chartered can issue a commercial letter of credit up to five million US dollars at any time, without requiring a deposit. Of course, if your company is willing to pledge assets, this limit can be increased to twenty million US dollars!"

Li Xuan wore a polite smile on his face but listened somewhat absent-mindedly to the enthusiastic and eloquent senior client manager from Standard Chartered Bank, who was promoting various financial services of the bank.

An hour earlier, he had just dismissed another senior client manager from HSBC. Banks would always add flowers to brocade but never coal to a snowstorm.

Previously, to facilitate international business, Oriental Electronics had opened international accounts with both Standard Chartered and HSBC. After the first batch of Tank Battle and Hong Kong Blocks arcade machines arrived in the United States and were warmly welcomed by players on the streets, the agents who had signed contracts with Oriental Electronics quickly sprang into action. They all anxiously sent advance payments to Oriental Electronics' bank accounts, hoping to secure the arcade machines as soon as possible.

As a result, the funds in Oriental Electronics' accounts at Standard Chartered and HSBC rapidly increased, with the total balance soon exceeding ten million US dollars. It was impossible for the two banks to ignore such a suddenly emerging client with a large cash balance. After conducting investigations to understand the basic situation of Oriental Electronics, the two banks quickly took action.

Business operations cannot be separated from dealing with banks. For many entrepreneurs, banks are like their own fathers. Expanding the company, purchasing new equipment, and short-term capital turnover often require loans from banks.

However, Oriental Electronics was an exception. The advance payments from agents alone made the company's cash flow very abundant, eliminating the need to seek help from banks. Li Xuan didn't want to truly turn away the two largest banks in Hong Kong, so he had to spare some time to deal with them.

The senior manager from Standard Chartered Bank ignored Li Xuan's absent-minded attitude and remained very enthusiastic and sincere. He didn't expect to win Li Xuan over on their first meeting. His visit was merely to show that Standard Chartered Bank valued Oriental Electronics as a new client.

As long as he could stabilize the client and prevent Oriental Electronics from transferring a large amount of funds from the Standard Chartered account to the HSBC account, his task for the day would be accomplished. Building a relationship and deepening friendship with Li Xuan could be done gradually in the future, without rushing.

Just as the representative from Standard Chartered Bank left, the next guest, who had made an appointment with Li Xuan, arrived.

Lu Qintian, the general manager and owner of Lu's Electronics in Hong Kong. Originally a middle school teacher in Gaoyao County, Guangdong, Lu Qintian and his wife, Zheng Qiang, came to Hong Kong and started Lu's Electronics from scratch.

In just five years, the couple had developed Lu's Electronics into the largest indigenous television manufacturer in Hong Kong, producing hundreds of thousands of black and white and color televisions annually, which were sold in Hong Kong and throughout Southeast Asia.

"Hello, Mr. Li, I apologize for the intrusion!" Lu Qintian entered Li Xuan's office, led by his assistant, Cao Jingya.

Li Xuan did not act arrogantly just because the other party needed his help. He quickly stood up from behind his desk, stepped forward to shake hands with Lu Qintian, and they sat down on the sofa to start their conversation.

"Mr. Li, I'm not good with flowery language. I won't waste your valuable time, so I'll get straight to the point. Our Lu's company is one of the largest television manufacturers in Hong Kong and Kowloon. In recent years, the various models of televisions produced by our factory have been sold in Hong Kong and throughout Southeast Asia, known for their good quality and reasonable prices!

Your company manufactures arcade monitors using CRT displays, which our factory is fully capable of producing, and the prices will be much more favorable than the products you import from Japan!" Lu Qintian said as soon as he sat down.

"Which company's cathode ray tubes are used in the televisions produced by your factory?" Li Xuan asked.

Like televisions, the most important part of an arcade monitor is the cathode ray tube, which directly determines the quality of the displayed image. Previously, to ensure quality, Oriental Electronics had imported cathode ray tubes from Hitachi and NEC in Japan.

"Our cathode ray tubes and motherboards are sourced from RCA's Taiwan factory. If you have specific requirements for components, we can also purchase cathode ray tubes from Japanese companies!"

Lu Qintian placed great importance on Oriental Electronics as a potential client. From the information he had gathered, this newly established game machine manufacturing company had grown rapidly, with monthly arcade machine production exceeding ten thousand units. If Lu's could secure this major client, Lu Qintian's company could instantly expand by half.

Li Xuan was not unfamiliar with the name RCA. RCA, the abbreviation for Radio Corporation of America, was known as the first brand in American home appliance manufacturing. It was RCA that first invented the world's first black and white television and the first color cathode ray tube.

RCA was also one of the earliest American companies to invest in Taiwan, setting up factories there as early as 1959. It now has factories in Taoyuan, Zhubei, and Yilan, producing a variety of electronic and electrical products, including cathode ray tubes, televisions, video recorders, and audio equipment.

Lu's company's research and development capabilities were not strong. The main components of the televisions, such as the motherboards and cathode ray tubes, were custom-made from RCA's Taiwan factory. While producing its own brand of televisions, the company also accepted orders from RCA to manufacture televisions for them.

Li Xuan nodded when he heard that Lu's company used RCA cathode ray tubes: "As a company rooted in Hong Kong, Oriental Electronics will naturally prioritize supporting local Hong Kong enterprises when purchasing components at the same quality and price.

However, arcade monitors are different from home televisions; they have a much longer continuous operating time. Therefore, we have higher requirements for the durability and stability of the monitors we purchase.

If possible, we would like to receive a few samples for testing. If the test results meet our requirements, we can sit down and discuss the details of the cooperation. What do you think, Mr. Lu?"

"That's reasonable!" Lu Qintian nodded. "I can guarantee the quality of our products and am willing to cooperate with you on the relevant technical tests!"

Although the electronics industry had become the second largest pillar industry in Hong Kong after the textile industry, the technology level had always been low, relying on cost advantages to dominate the low-end market. To pursue rapid expansion, Oriental Electronics had not had the time to carefully select suppliers and had directly sought out suppliers who had cooperated with other game companies like Sega and Taito.

However, after the company stabilized, Li Xuan was determined to rebuild the supplier system. If local Hong Kong enterprises could meet the quality requirements, Li Xuan was very willing to prioritize them.

In addition to the price factor, Li Xuan's identity as a Hong Kong resident meant that Hong Kong was his home turf. By involving more local Hong Kong enterprises in Oriental Electronics' supply chain, the company's influence in the Hong Kong business community could be rapidly expanded.

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