In Hong Kong, we build a global business empire

John Madden never imagined that one day a Chinese businessman would tell him he was old and should retire.

Despite its decline, Wheelock & Co. is still among the top 20 listed companies in Hong Kong.

Among British-owned enterprises in Hong Kong, Wheelock is still ranked among the top five.

After all, even a starved camel is bigger than a horse.

John Madden remains a prominent figure in Hong Kong's business community.

If someone were to tell him under normal circumstances that he is old and should retire and sell his shares in Wheelock & Co., he would absolutely laugh at the person and might even have them kicked out without hesitation.

But now, facing Lin Haoran, he couldn't say such words.

It wasn't that he was afraid, but rather that he knew Lin Haoran was telling the truth.

He wanted to sell it six years ago, but HSBC stopped him.

Six years later, HSBC had become Lin Haoran's HSBC, and no one would stop him anymore.

Moreover, the current Wheelock is indeed not the same Wheelock as it was six years ago.

Six years ago, although business was difficult, at least the family assets were still intact, the real estate was still appreciating, and shipping was still profitable.

But now?

The real estate market collapsed, shipping companies suffered losses, and even the two giant ships ordered on a whim became hot potatoes.

He was like a gambler who bet all his chips on the shipping industry, only to be dealt a winning hand, a triple kill.

John Madden leaned back on the sofa, closed his eyes, and repeatedly replayed every word Lin Haoran had just said in his mind.

Even if you manage to keep Wheelock, who will you hand it over to in the future?

These words were like a thorn stuck in his heart, impossible to remove.

Hand it over to the eldest son, George?
George had no interest in business and didn't even bother to attend Wheelock's shareholders' meetings.

He once asked George why he was unwilling to come back and take over the family business.

George replied, “Father, I have my own life. Wheelock is your dream, not mine.”

Hand it over to the second son, Andrew?

Andrew was willing to take the job, but his abilities were really mediocre.

Last year, he put Andrew in charge of handling the lease renewal matters of an office building in Tsim Sha Tsui. As a result, he was tricked by a group of small businesses. Not only did the rent not increase, but they also took several months of rent-free period.

In the end, he had to personally step in to resolve the matter.

To hand it over to the youngest son, William?
William was his most beloved son, and also the son who most resembled him.

William, however, had no interest in business. What he loved was the Australian ranch, the sunshine and grasslands, the cattle, sheep and horses.

He tried to persuade William to stay, but William said, "Father, I don't want to repeat your life. I want to live the life I want."

None of his three sons were able to take over the responsibilities he had.

This is just one example.

Furthermore, the real estate crisis and the shipping industry downturn have combined to make it difficult for Wheelock to breathe.

He recalled the board meeting last week. Although the Zhang Yuliang family representative did not directly confront him, the implication was clear: Wheelock and Company could not continue like this.

The other party’s original words at the time were: “Mr. Madden, the losses in the shipping industry have been widening for three consecutive quarters. If this continues, we will have to consider adjusting our strategic direction. Perhaps it is time to let a more capable person lead Wheelock out of its predicament.”

More capable people.

John Madden, of course, understood the underlying meaning in those words.

Zhang Yuliang's family is trying to oust him from power!
The Zhang Yuliang family holds approximately 40% of Wheelock's shares, making them the largest shareholder.

The other party's interests in the Wheelock Group are even greater than those of the Madden family. The less profitable the group is, the greater the Zhang family's losses will be.

Therefore, it is understandable that Zhang Yuliang's family is anxious.

Over the years, the development strategy of the Wheelock Group has indeed been decided by John Madden, so he is indeed primarily responsible for the group's current predicament.

If Zhang Yuliang's family really wants to oust him from power, he will have no grounds for argument.

The Madden family owns only 13.5% of the shares, and they can barely maintain control thanks to the dual-class share structure.

If Zhang Yuliang joins other shareholders to demand the abolition of the dual-share system and the implementation of one share, one vote, he will have no room to resist.

And this is exactly what he is most worried about.

In addition, he himself lacked confidence in the future of Hong Kong, and during this period he watched helplessly as many British businessmen withdrew from Hong Kong, which made him even more uneasy.

Now, after Lin Haoran's persuasion, his first thought was not anger, but a sense of agreement actually arose in his heart!

Yes, a sense of belonging.

John Madden was startled by his own thought.

He, the patriarch of Wheelock and the head of the Madden family, actually agreed with a Chinese businessman's advice that "you're old and should retire."

But upon closer reflection, he realized there was nothing strange about it.

Every word Lin Haoran spoke was like a precise scalpel, cutting open the issues he had been avoiding and escaping for years.

There is no one to carry on the legacy; that is a fact.

It was a strategic mistake, that's a fact.

A lack of confidence is still a fact.

Zhang Yuliang's coercion of Zhang Yuliang is a fact.

Lin Haoran did not tell a single lie, nor did he exaggerate any problem.

He simply laid out these facts before him and then told him: there is a way to go.

For a moment, the study fell completely silent.

Lin Haoran quietly sipped his tea, neither urging him nor saying anything more.

He knew he had said everything he needed to say.

The rest was left for John Madden to think about.

The grandfather clock in the study ticked away, each second like a musical note, playing the melody of time in this ancient study.

John Madden leaned back on the sofa, his eyes closed, his fingers tapping unconsciously on the armrest.

He wondered what would have happened if HSBC hadn't stopped him six years ago.

Perhaps he has long since retired to his estate in England, spending his days gardening, fishing, and occasionally reminiscing about Hong Kong, the place where he once struggled.

In this day and age, isn't retiring at sixty a very normal thing?

Which of those old friends in the City of London didn't retire at sixty and hand over their positions to younger people?

Only he, over sixty years old, is still struggling in this quagmire.

It's not that he doesn't want to quit, it's that he can't.

Six years ago, I wanted to withdraw, but HSBC stopped me.

Later, the real estate industry took off, and Wheelock & Co. survived again. He felt he could work for a few more years.

Later, as the shipping industry began to decline, he felt he had to stay and try to turn the tide.

But the result?

Instead of turning the tide, they dragged Wheelock into an even deeper quagmire.

If he had retired six years ago, Wheelock & Co. might not be doing any better now, but at least it wouldn't be any worse.

Although Jardine Matheson was ruthless, the Keswick family had a knack for doing business.

If Takfung were to fall into the hands of Jardine Matheson, it might be broken up, but at least it wouldn't be in its current half-dead state.

But what's the point of saying all this now?
Time cannot be turned back, and he cannot go back six years to make a different choice.

Withdrawing now might be the best outcome.

The Madden family, relying on its shares in Wheelock and the wealth accumulated over the decades, has enough to support a comfortable life for several generations.

Once he establishes a family trust fund using all the family's assets, his three sons will be able to develop freely in their respective preferred fields.

And the Madden family was able to maintain a respectable life even after his death.

Isn't this much better than stubbornly holding on to Wheelock and being ousted by Zhang Yuliang and scolded by the shareholders?

Thinking of this, John Madden suddenly felt that the heavy stone that had been pressing on his heart for so long had loosened a little.

He opened his eyes and his gaze fell on Lin Haoran, who was quietly sipping tea across from him.

This young man, not yet thirty, already possesses the composure and patience expected of someone in their sixties.

No, I should say he's more patient than him.

When he and Lin Haoran were the same age, he was just a nobody following his father around learning from him, while Lin Haoran had already become the richest man in Hong Kong, owning Hang Seng Group, Hongkong Land Group, Wan Tsing Group, Hong Kong Electric Group, and Hutchison Whampoa.

The gap between people can sometimes be greater than the gap between people and monkeys.

Considering Lin Haoran's past penchant for acquiring British trading companies, John Madden suddenly felt that it wasn't entirely unexpected for Lin to approach him this time to discuss acquiring shares of Wheelock & Co. After all, Lin Haoran had once been dubbed a "collector of British trading companies" by some mainstream Hong Kong media outlets!
However, John Madden had no idea that he had come not to acquire Wheelock & Co. himself, but rather to have Wharf Holdings acquire it.

Lin Haoran was merely someone who stood behind Bao Yugang, paving the way for him.

Of course, Lin Haoran himself is also a part of Wharf Holdings, and in addition, Paul Y. has agreed that Wheelock will transfer Lane Crawford Group to Lin Haoran after the acquisition is successful, so he is not losing out on this deal.

Anyway, I'm just acting as a mediator, simple!
Looking at the quiet, thoughtful old foreigner in front of him, Lin Haoran had a better understanding of the purpose of his visit.

Throughout the entire conversation, when he told the other person that they were old and should retire, he didn't get angry. Instead, he fell into deep thought, which showed that the other person was somewhat persuaded by him.

John Madden suddenly sighed. He didn't know how much time had passed—perhaps only a minute, or perhaps ten minutes.

He asked, "Mr. Lin, since Wheelock is in such a predicament, why do you still want to acquire it?"

Upon hearing this, Lin Haoran laughed and said, "To be honest, Mr. Madden, I really don't think much of Wheelock's shipping business. In my opinion, the global shipping industry is in a slump and it will take a long time to recover."

As for the real estate industry, no one can predict what the future of Hong Kong will be like. My core industries are all in Hong Kong, so I am destined to leave Hong Kong. All of this is just a gamble. I have no idea whether Hong Kong real estate can return to its peak in the future.

What I value even more is Lane Crawford Group; I've wanted to acquire it for a long time, but unfortunately, Mr. Madden, you didn't agree before!

Upon hearing this, John Madden couldn't help but recall that two years ago, when he sold the International Building and the Federal Building to Lin Haoran as a package deal, Lin Haoran had hoped that he would also sell Lane Crawford Group, a retail giant in Hong Kong, as part of the package deal.

He refused at the time.

He felt that Lane Crawford was the crown jewel of Wheelock Properties and the foundation of the Madden family's retail business in Hong Kong, and therefore could not be sold.

Unexpectedly, in order to acquire Lane Crawford, the other party actually wanted to acquire Wheelock.

This time, John Madden misunderstood again.

He thought Lin Haoran wanted to acquire the entire Wheelock because of Lane Crawford, but he didn't know that Lane Crawford was just a bonus in this deal, and the real buyer was someone else.

However, this misunderstanding turned out to be a good thing for Lin Haoran.

It's much better for John Madden to think he's after Lane Crawford than for the other party to know he's paving the way for Bao Yugang.

After all, nobody wants to be used as a pawn.

However, he was somewhat conflicted because Lin Haoran did not have a good reputation within the British conglomerate.

The other party has successively acquired former British giants such as Hongkong Land Group, Huafeng Bank, Hutchison Whampoa, Hong Kong Telephone, and Hong Kong Electric Group, making him a veritable killer of British giants. In the eyes of many British conglomerates, Lin Haoran is undoubtedly an enemy!
The Keswick family, in particular, of Jardine Matheson & Co., hated Lin Haoran to the core.

If he were to sell Defeng Trading Company to Lin Haoran so readily, and then return to England to retire, his old friends would probably gossip about him.

They would say, "Look at that John Madden, he couldn't even keep his family business, he sold it to the Chinese."

"He squandered the hard work of generations of the Madden family."

Thinking about this, John Madden hesitated again.

He picked up the teacup, took a sip, and found the tea had gone cold, leaving a bitter taste on his tongue.

“Mr. Lin,” he put down his teacup, his voice a little hoarse, “your conditions are very good. To be honest, I’m very tempted, but I have a concern.”

Lin Haoran looked at him without saying anything, waiting for him to continue.

“Your reputation in British business circles…” John Madden carefully chose his words, “How should I put it, some people treat you as an enemy. Putting aside the price, if I sell Wheelock to you, it will be difficult to explain back in England.”

Upon hearing this, Lin Haoran couldn't help but chuckle to himself.

He suddenly realized how to avoid putting Bao Yugang in an awkward position in this matter.

Paul Yu-Kang and the Madden family have a long-standing relationship. If Paul Yu-Kang directly expressed his desire to acquire Wheelock, John Madden would inevitably feel resistant. That's why he had Lin Hao-Ran, an outsider, negotiate, which would be more flexible.

John Madden is now almost convinced, but he's worried about saving face.

He was afraid of being gossiped about if he went back to England, and afraid of not being able to hold his head up in front of his old friends.

This problem is easier to solve!
"Mr. Madden, how many of those who gossip behind your back do you think truly care about you?"

His voice wasn't loud, but every word was powerful.

"When Zhang Yuliang was forcing you to resign, did they speak up for you? When you were worried about the final payment for those two ships, did they lend you money?"

John Madden fell silent.

No.

not a single one.

Those who fraternized with him at the club, those who toasted him at the horse races, those who nodded to him at the shareholders' meetings—all of them vanished during his most difficult time.

They didn't care about Wheelock's life or death, or even his life or death; they only cared about their own face and interests.

“Actually, I understand that you don’t want to sell to me. I can point out another way for Mr. Madden to withdraw from Wheelock & Co. smoothly and safely, and the price will certainly not disappoint Mr. Madden,” Lin Haoran continued with a smile.

Upon hearing this, John Madden quickly asked, "What method?"

"As far as I know, Mr. Madden and Mr. Bao have a close relationship, right?" Lin Haoran asked in return.

Although John Madden did not understand why Lin Haoran would bring up Bao Yugang, he still nodded and said, "Mr. Bao and I have known each other for more than 30 years. Back when my father was in charge of Wheelock, we were very good business partners."

"Mr. Bao's success today owes much to the efforts of our Madden family back then."

John Madden spoke with a hint of pride.

Indeed, when Paul Y. first started his shipping business in Hong Kong, Wheelock was already one of the top shipping giants in Hong Kong.

John Madden's father, George Madden, had high hopes for the young man and provided him with a great deal of help, including shipping positions, cargo sources, and financing channels—he helped him in every way he could.

Bao Yugang is also a grateful person, and has maintained a good relationship with the Madden family over the years.

“That makes things easier.” Lin Haoran smiled slightly. “Mr. Madden, you can sell your shares to Mr. Bao.”

John Madden was stunned.

Sold to Bao Yugang?
He had never considered this possibility.

In fact, he also admired Paul Chung, who had foreseen the decline of the shipping industry several years ago, decisively abandoned shipbuilding and went ashore, selling off ships on a large scale and taking over Wharf Holdings, a real estate giant in Hong Kong.

In recent years, Wheelock has also taken over many ships from the Worldwide Shipping Group.

In retrospect, Bao Yugang's decision back then was incredibly wise.

Although Hong Kong's real estate industry is in crisis, Wharf Holdings mainly operates commercial buildings and shopping malls, so even if the real estate crisis is not a major factor affecting Wharf Holdings.

Thinking about this made John Madden feel even worse.

Back when the shipping industry was at its peak, Paul Yiu-kong withdrew from the market at the right time, selling his ships to a number of shipping companies, including Wheelock and Company, and cashing out a large sum of money to invest in Wharf Holdings.

At that time, he thought Bao Yugang was too conservative. Why should he withdraw from the shipping industry when there was still plenty of money to be made?

Looking back now, Bao Yugang was truly a person with foresight.

He himself was nothing more than a fool who bought at a high price.

He hesitated for a moment and asked, "Would Mr. Bao agree to acquire Wheelock's shares? After all, he has been reducing his investment in the shipping industry in recent years, and now that Wheelock's shipping business accounts for such a large proportion, would he be willing to take it over?"

Lin Haoran smiled: "Mr. Madden, that's a good question. Mr. Bao is indeed reducing his investment in the shipping industry, but he has never said that he wants to completely abandon shipping."

He simply reduced the proportion of shipping and invested more resources in real estate and retail. Although Wheelock's shipping business was losing money, the quality of its fleet was still very good.

After Mr. Bao takes over, he can gradually make adjustments, divesting the unprofitable parts and retaining the profitable parts. This is not a difficult task.

Most importantly, wouldn't it be better for you if Mr. Bao were willing to take over? Your two families have a close relationship, so Mr. Bao wouldn't be too aggressive in negotiating the price, would he?

John Madden's eyes lit up when he heard this.

Yes, selling to Bao Yugang would be much more respectable than selling to Lin Haoran.

Bao Yugang is indeed a Chinese businessman, but he is an old friend and a junior whom my father mentored back then.

If Wheelock is handed over to him, even if those old British friends want to gossip, they won't find a reason to do so.

Moreover, given Bao Yugang's personality, he certainly wouldn't be as shrewd as Lin Haoran.

In terms of pricing, things should be more flexible.

However, he hesitated for a moment before asking, "If Mr. Lin can't acquire it himself, why help me?"

Upon hearing this, Lin Haoran laughed and said, "Mr. Madden, don't forget that even if Mr. Bao acquires Wheelock's shares, he will do so in the name of Wharf Holdings. I, Lin Haoran, am the second largest shareholder of Wharf Holdings. I can offer my advice to Wharf Holdings. It's just a very simple matter for me to persuade Mr. Bao to acquire Wheelock!"

John Madden paused for a moment upon hearing this, then suddenly realized what was going on.

The second largest shareholder of Wharf Holdings.

It turned out to be the case.

Lin Haoran helped Bao Yugang make connections not because he couldn't afford Wheelock Properties himself, but because he was also a shareholder of Wharf Holdings.

If Wheelock were to fall into the hands of Wharf Holdings, he would still be able to get a share of the profits.

This person is truly meticulous in everything they do.

"If Mr. Lin can really get Mr. Bao interested in acquiring Wheelock shares, then I'll leave this matter to you."

John Madden's tone carried a hint of emotion.

"To be honest, I've been thinking about the future of Wheelock over the years. Now that I think about it, handing it over to Mr. Bao might be the best outcome."

Upon hearing this, Lin Haoran immediately smiled.

He knew that the matter was basically settled! (End of Chapter)