The next morning, the streets of Hong Kong Island were still slightly damp and cool, but the newsboys were already carrying heavy canvas bags and weaving through the streets and alleys, their crisp shouts breaking the silence.
"Newspapers for sale! Newspapers for sale! The Asia Daily is fresh off the press! Hongkong Land Group is betting big on mainland electronics, and Kobayashi Tenno is courting disaster!"
"Take a look at the Sing Tao Daily! A mountain of unsold electrical appliances in mainland China could wipe out huge investments by Jardine Matheson!"
"Ming Pao Special Offer! Japanese electronics monopolize the world, Kobayashi's counter-trend move is destined to result in huge losses!"
The shouts of newsboys rose and fell, and many early risers stopped to buy newspapers.
The front page of the newspapers was almost entirely dominated by the same news: Hongkong Land Group's investment in a mainland electrical appliance manufacturer had failed.
The bold, black-and-white title was particularly jarring, and the accompanying photos were even more shocking. The warehouse was densely packed with brand-new electric fans, radios, and black-and-white televisions, some of the cardboard boxes were damp and deformed, clearly indicating that they had been stored there for quite some time.
Of particular note is that even Kobayashi Tenmoku's own Asia Daily couldn't avoid the topic, devoting considerable space to analysis and reporting on the news of Hongkong Land Group's investment failures.
Asia Daily: "Since Kobayashi Tenmoku took over Hongkong Land Group, he has made frequent moves, which once led people to believe that he had the ability to reverse Jardine Matheson's decline."
Recently, it was discovered that Hongkong Land Group has suddenly invested heavily in several mainland electrical appliance manufacturers and is building the Shekou Industrial Park in Bao'an, mainland China. This move is tantamount to moths flying into a flame.
The global home appliance market is currently dominated by Japanese companies. Brands like Panasonic, Sony, and Sharp, with their advanced technology and stable quality, hold over 80% of the global market share. Even residents of Hong Kong Island favor Japanese appliances; the situation is even more pronounced in overseas markets.
The article continues: "The mainland's electrical appliance industry started relatively late, with outdated technology, rough processes, and inconsistent product quality. Our reporter visited several electrical appliance factories in the mainland and found that all they saw were warehouses full of unsold products."
Kobayashi Tenmoku disregarded market rules and impulsively spent a large sum of money. Such arrogance and recklessness may drag the Hongkong Land Group's decades-old foundation into the abyss.
Hongkong Land Group's funds should have been focused on its core Hong Kong Island real estate business, but now they've been diverted to the completely unfamiliar electronics sector, specifically to mainland manufacturers with bleak prospects. It seems only catastrophic losses await Kobayashi.
Sing Tao Daily quoted several industry analysts as saying: "The cost-effectiveness and technological barriers of Japanese electronics are far beyond what mainland Chinese manufacturers can achieve at this stage."
Consumers buy appliances for practicality and durability, and mainland products have no advantage in either of these aspects.
This investment by Hongkong Land Group lacks technological support, channel advantages, and brand recognition; it is purely a case of blind expansion.
We anticipate that within six months, this investment by Hongkong Land Group will face substantial losses, impacting its cash flow and potentially even affecting its core real estate business.
Ming Pao's commentary on this matter was even more scathing.
"When Kobayashi Tenmo was young and successful, the stock price of the company rose after he took over the company. He then thought he was invincible and became so arrogant that he forgot his own limitations."
Hong Kong's business community has never lacked promising young talents, but those who can establish themselves in the long run are invariably cautious and adaptable. Kobayashi's challenge to the Japanese electronics giant against the tide is tantamount to throwing an egg against a rock.
The surge in Hongkong Land's market capitalization to HK$10 billion was merely a temporary burst of blind market enthusiasm. Now that negative news has surfaced, the stock price is bound to plummet, and those who bought in following the trend are likely to suffer losses.
Other tabloids also started to follow suit, with headlines that were increasingly sensational, writing whatever was meant to attract attention.
"Jikland Group is in danger! Kobayashi Tenmoku's failed gamble will backfire."
"Mainland Electric Appliances has become a hot potato, and billions of dollars of land are tied up."
"Under the Japanese electronics monopoly, Kobayashi's wishful thinking will ultimately fail."
The news of Hongkong Land's failed investment immediately became the focus of heated discussion on the streets of Hong Kong Island.
In a tea restaurant in Sheung Wan, the restaurant is usually packed with customers in the early morning. Amidst the swirling smoke, everyone is looking at the latest newspaper and discussing the news.
In the 1970s and 80s, when entertainment options were limited, these morning news items were the "hot topics" in tea restaurants, especially those involving well-known companies in Hong Kong, which generated even more discussion.
"Qiang, have you read today's newspaper? Xiao Lin has really gotten himself into big trouble this time!"
A middle-aged man in overalls, holding a teacup, spoke in a very loud voice.
The young man across from him, Ah Qiang, nodded, still clutching half a newspaper in his hand, and said, "I saw it! I never expected that such a big company as Landsea would invest in Mainland Electrical Appliances."
My TV is a Panasonic, and it's lasted three years without breaking down. Who would dare buy appliances from mainland China with that kind of quality and standard?
The old man at the next table shook his head, put down his chopsticks, and sighed, saying, "Young people don't know their own limitations! Kobayashi Tenmoku has only been in charge of the company for a few months, and the stock price has risen a little, so he's already getting cocky and thinks he's a god."
The strength of Japanese electronics is undeniable, yet this company dares to target mainland Chinese products, attempting to pit mainland Chinese electronics against Japanese electronics in a direct competition. No wonder they're doomed.
"It's more than just a loss. Look at the photos in the newspapers. The warehouses of mainland electronics stores are piled up to the ceiling, and they can't sell them at all."
"Hongkong Land has invested so much money; if they can't get it back and their cash flow dries up, Hongkong Land could go bankrupt at any time!"
A bespectacled office worker standing nearby replied with certainty.
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