Hong Kong Island: From a small stall to a global supplier

Central, Hutchison House, Cheung Kong Holdings headquarters.

“We have obtained approximately HK$5 million worth of remortgaged loans from HSBC, Citibank, and DBS, and have paid a total of HK$4.8 million in cash. According to the information provided by Gu Yuanbin, the total loan amount from K. Wah is approximately HK$9.2 million. The remaining amount is held by Standard Chartered Bank, Wing Lung Bank, Dah Sing Bank, and OCBC Wing Hang Bank. I contacted them yesterday, and they have reached an agreement with Wang Yaotang to transfer the mortgage loan to him,” Zhou Qianhe said in a deep voice.

Zhou Qianhe: A native of Chaozhou, he followed Li Xiangjiao to manage finances in the early days of Cheung Kong Holdings. He worked diligently and conscientiously and was a founding member of Cheung Kong Holdings. Later, he was promoted to vice president of the board of directors, responsible for the trading of Cheung Kong Holdings' stock.

The Zhou family loves their country and hometown. Zhou Yangyun, the father, contributed money and effort to the founding of Liancheng No. 1 Middle School in the 1930s. Zhou Qianhe inherited the family tradition and generously donated to public welfare undertakings in his hometown. In 1989, he donated 42,000 yuan to build a new school gate for Liancheng No. 1 Middle School, and in 1992, he donated 500,000 Hong Kong dollars to build the "Jinghe Building".

“According to the information, Wang Yaotang started out as a street thug, always involved in gangs, and was in the entertainment, audio-visual, and clothing industries. I’ve never heard of him having much connection with banks. How did he manage to get so many chips?” Sheng Songsheng asked, frowning.

Sheng Songsheng: A native of Shanghai, he joined Cheung Kong Plastics Factory in 54, where he was responsible for production and made great contributions to the development of Cheung Kong Holdings. He is currently the Vice President of the Board of Directors of Cheung Kong Holdings, responsible for the company's real estate business. He left Cheung Kong Holdings in 85 and immigrated to Canada.

Li Xiangjiao valued old friendships and threw a grand farewell party for Sheng Songsheng when he left...

"It's not necessarily because that young man has good relationships with a few banks." Li Xiangjiao took off his large-framed glasses and wiped them. It's more likely that these people were just deliberately trying to annoy him.

Moreover, Lu Zhihe has vanished without a trace, and Jia Hua's bankruptcy is imminent. The value of the previously mortgaged assets has shrunk significantly, posing a great financial risk. Holding onto them could easily turn them into bad debts. It would be better to lower the price slightly and release them, which would not only bring in the money but also do a good deed.

Foreign banks like HSBC, Citibank, and DBS mainly focus on financial business in Hong Kong. They make money easily in finance and are genuinely unwilling to get involved in real industries, as they simply cannot manage the assets they hold.

On the other hand, local banks such as Wing Lung Bank, Dah Sing Bank, and OCBC Wing Hang Bank are involved in real estate and port businesses to varying degrees in addition to their financial business. They have many conflicts with Li Xiangjiao in this regard and do not mind adding fuel to the fire at this time.

It's still unknown whether Wang Yaotang poses a threat in the future, but Li Xiangjiao is currently his biggest competitor.

Sheng Songsheng and Zhou Qianhe exchanged a glance and did not continue the topic.

Sheng Songsheng coughed lightly and said, "According to the original plan, we would let that clown Wang Yaotang hollow out Jia Hua, and after entering the bankruptcy process, we would use the secured debt to take the biggest piece of the pie, and use the remaining scraps to get rid of him. But now that he has taken so many chips, this method will not work."

“Yes.” Zhou Qianhe also frowned and said, “Entertainment and audio-visual products are cash cows. As far as I know, Wang Yaotang has a lot of cash on hand. 4 million is not the limit. After entering the bankruptcy liquidation process, even if we win by competing with funds, it will be a loss. But if he really controls the three major stone mines, he will inevitably retaliate against us. That kid is too vengeful.”

“It’s alright, don’t worry too much about him.” Li Xiangjiao waved his hand. “A criminal is a criminal. There are many loopholes in this kind of person. I will contact the Hong Kong government and the police to put pressure on him. As for K. Wah, we will focus on K. Wah International Centre and Harbour View Holiday Hotel. It’s not a big deal if he takes the stone mine. There’s also ‘Shek O’ and ‘Lamma Island’, as well as the stone mines produced in Taiwan. He can’t monopolize them.”

"Hehe, don't be fooled by their current smugness at watching us fight. When Wang Yaotang really tries to monopolize the stone mining industry, they'll object and jump out to obstruct us. We don't need to rush."

“Okay, then I know what to do,” Zhou Qianhe said in a deep voice.

……

On the other side, at the Union Building.

"No, how much is Lu Zhihe's net worth? How can he take out so many loans? Is he crazy? How much interest does he have every year?" Wang Yaotang asked, frowning at Tong Jianbo in front of him.

"Investing in stone mining doesn't actually yield much profit, and it's entered a bottleneck period. Mr. Lü has been trying to find ways to expand into other businesses," Tong Jianbo explained.

Tong Jianbo, general manager of Jia Hua International, a subsidiary of Jia Hua Group, was not on Li Xiangjiao's list of people to win over, so he simply sided with Wang Yaotang.

"We tried the 'steel' business before, but we could only act as middlemen. We couldn't control the source of goods or the transportation channels, so Mr. Lü gave up on it. We tried the cement business and even competed with Li Xiangjiao when we acquired Qingzhou Yingni, but we failed and had to give up. At present, Jiahua has a few concrete mixing plants and the profit is not bad, but there is not much prospect. So Mr. Lü's current focus is on real estate development and hotel business."

Tong Jianbo has been working for Boss Lü for over a decade and is well aware of all the attempts Lü Zhihe has made over the years. He wants to explain his abilities to the new boss.

"The operation of the Holiday Inn Ocean View Hotel is quite successful. Mr. Lü plans to continue his business in Macau, Hong Kong and the United States. Currently, there are three projects under preparation in Hong Kong: two hotels and one commercial real estate. In addition, he has purchased a piece of land in San Francisco on the west coast of the United States and is building a Holiday Inn Ocean View Hotel. In fact, Mr. Lü has a large funding gap."

Wang Yaotang frowned and hummed in agreement. "Why haven't I heard Gu Yuanbin mention this before?"

"Here's the thing, Mr. Yao. Gu Yuanbin's company was originally called 'International Tube Industry Co., Ltd.' After Mr. Lü dominated the Hong Kong stone mining industry, he started to move into other industries, so he founded the K. Wah Group. That's why International Tube Industry was renamed K. Wah Construction. The business of K. Wah International, where I work, is real estate development, and there's also a K. Wah Hotel, which is in charge of the Harbour View Holiday Hotel. But Mr. Lü is most famous as the 'Stone King,' which is also the core business. So when people talk about K. Wah, they usually mean K. Wah Construction. K. Wah International and K. Wah Hotel are just a little known in the industry," Tong Jianbo explained.

Wang Yaotang nodded in realization. He knew that Lü Zhihe had previously developed two residential properties, but they had already been sold and had nothing to do with him now. As for the Seaview Holiday, it had only been operating for a little over a year, and its brand value was incomparable to that of InterContinental or Peninsula.

“The construction funds for the Harbour View Holiday Hotel were all secured by shares of K. Wah Construction, which is why Gu Yuanbin gave you these details. As far as I know, after the Harbour View Holiday Hotel started operating, it was mortgaged again by Mr. Lu, which is how the money was raised to build a new Harbour View Holiday Hotel in San Francisco.” Tong Jianbo continued, “In addition, Mr. Lu also acquired two plots of land in Tsim Sha Tsui and Yau Ma Tei, respectively, and plans to continue building hotels there. He also has a plot of land on Java Road in North Point where the K. Wah International Centre Tower is being built.”

"I remember Lü Zhihe only borrowed 9.2 million in total, right? With so many projects, is that enough money?" Wang Yaotang asked in surprise.

"That's enough. Mr. Lu has accumulated some wealth over the years. Moreover, due to the negotiations between the two sides, the real estate market is not doing well right now. Therefore, the land in Tsim Sha Tsui and Yau Ma Tei has not been developed. Only the K. Wah International Centre in North Point is under construction, and the construction speed is relatively slow, so the amount of capital consumed is not too much. As long as the capital is consumed in San Francisco, if Mr. Lu is willing, he can actually borrow several hundred million more. The capital chain is still relatively safe."

Wang Yaotang chuckled. These people in the real estate business were constantly taking out loans, one after another. He remembered that in later years, real estate companies could have debt ratios of 200% or even higher.

Of course, companies in Hong Kong wouldn't dare to play that big. They have to repay the money to Hong Kong banks, since they are privately owned and the financial market is relatively open. Once the debt ratio exceeds a certain threshold, they will be swallowed up without a trace.

After understanding the whole situation, Wang Yaotang simply told them to continue according to the original plan and sent them away. He didn't say anything about Li Xiangjiao.

At this point, several of Jiahua's mines gradually ceased operations. Everyone knew that Jiahua was finished, and its cash flow would inevitably break, leading to bankruptcy. But this takes time; it's impossible to push people into the incinerator before they're even dead. They have to wait until next month's wages can't be paid, until they can't even pay the bank interest, before the government can step in to take over and initiate bankruptcy proceedings.

Then came the formation of a bankruptcy administrator team, composed of so-called professionals such as Hong Kong British officials, banks, and lawyers. After taking over the entire K Wah Group, they conducted an inventory of assets and debts, followed by asset liquidation and auctions. Only then could the debts and loans held by Wang Yaotang and Li Xiangjiao come into play.

By the way, the bankruptcy administrator team also gets paid, and their salaries are quite high. They also have the highest priority in the bankruptcy liquidation process. If, when it comes time to distribute the assets, there's only enough money left to pay the administrator team's salaries, then everyone else, including the company's original employees, can just leave—there's no money left…

Therefore, Wang Yaotang cannot have a conflict with Li Xiangjiao before this happens, otherwise, given his relationship with the Hong Kong British authorities, it is unknown when the bankruptcy inventory will be completed.

It's halftime now.

After the others left, the four-eyed guy pushed open the door and came in, followed by Jiao Peilin.

He invited the two to sit down, but the bespectacled guy, not wanting tea on such a hot day, went to the refrigerator and took out two cans of cola, handing one to Jiao Peilin.

"You need to go to Zhuhai and have a chat with them." After taking a sip and burping, the four-eyed man said.

"What's wrong?" Wang Yaotang asked.

“Kia Wah’s mine has stopped production, but the construction sites on Hong Kong Island can’t stop. We’re the ones who did the work, so we have to fill the gap in stone supply. That means we can only ask Zhuhai to increase the supply, but that requires official approval from the city government,” the bespectacled man explained.

"Isn't it good to sell more? Just place an order, right?" Wang Yaotang asked curiously.

“It’s not that simple. We’ve expanded production capacity now, but what will happen to the extra capacity in Zhuhai once we take over the three major mines of Jiahua and resume production? We can’t just cut it off.”

Wang Yaotang slapped his forehead, realizing he'd forgotten about it. Production capacity wasn't something you could just casually reveal. "What were you thinking?"

Jiao Peilin said with a smile, "Boss, the north is not Hong Kong Island. Guangdong alone is many times larger than Hong Kong. Besides, they are a socialist country. Production scheduling is just a matter of an official document. Zhuhai doesn't actually need to increase its production capacity. The existing capacity is enough to fill the gap in Hong Kong Island. Local demand can be met by transferring resources from other places. It's just that we don't have the face to do that. We need you to step in."

The bespectacled guy chuckled and said, "Patriotic businessmen have the most face, right?"

Wang Yaotang laughed and then cursed, "That bastard Li Xiangjiao."

"I know he's a bastard, but what did he do to offend you?" the four-eyed guy asked with a smile.

"I fought Lu Zhihe to the death, and when the market was empty, I had to swallow my pride and ask the north to coordinate. But he, on the other hand, didn't have to do anything and was just ready to reap the benefits. What an old bastard!"

The bespectacled guy curled his lip. "They're one of the four major families, they have capital and connections."

Jiao Peilin lowered his head and remained silent; this was not something a nobody like him could get involved in.

“Let’s not talk about him.” Wang Yaotang waved his hand. “Let’s make an appointment with someone in Zhuhai and talk about… talk about industrial upgrading, building a mineral processing plant to classify the stone in detail and increase market competitiveness. Jiao Peilin, make a plan and also set up a management team.”

"Good boss."

……

Zhuhai, government office building.

Wang Yaotang got out of the car and walked quickly toward the Second Elder. "I'm so sorry to have troubled you to come out and meet me."

"We are all doing things for the people, it's only right and proper. Come in, please come in."

"please."

Upon arriving at the conference room, both the Mining Bureau and the Foreign Trade Bureau were present. The secretary served tea, and everyone began chatting. The topic quickly turned to the Hong Kong building materials market.

Wang Yaotang guessed that they must have received news about the sudden increase in procurement. With street gunfights and RPGs blowing up planes, how could they not know about it, given how much importance the country has always placed on intelligence work?

What is capitalism?
This is an unpleasant topic, and he certainly won't mention it if we don't bring it up here. Increasing the purchase volume is a good thing in itself, because there will be more foreign exchange. Hong Kong consumed 1500 million tons of stone last year, with a market value of over HK$70 billion, close to US$10 billion. Zhuhai wants to absorb all of it.

After chatting for a while, the topic of the ore processing plant came up. Jiao Peilin had submitted the necessary documents to Zhuhai beforehand. Wang Yaotang's visit was mainly to finalize details regarding the site, investment, and utilities. More specific matters like recruitment and wages would naturally be handled by his subordinates. The equipment was secondhand, salvaged from Lamma Island. As for why they were auctioning off equipment and then discarding it…

They're basically eliminated!
Wang Yaotang only needed to pay for the industrial land and factory construction. In order to increase transportation efficiency, he also purchased 30 locally produced Hongwei GZ140 vehicles from Guangzhou.

In the early 80s, the domestic production of such heavy industrial products was limited. To order them, one not only needed connections but also had to wait in line. However, Wang Yaotang was in US dollars, so naturally, there was no problem, and he managed to send over a batch in advance, saving money as much as possible.

Everything was settled. Dinner was arranged on the Pearl River side. After the meal, Wang Yaotang did not stay overnight and took a boat back to Hong Kong Island. In reality, the conditions here were indeed not good.

On the way back, Jiao Peilin said, "I checked out that Hongwei truck. Its load capacity is only 3.5 tons, and according to the official price, it costs 1.7 US dollars. That's too expensive! A brand new Mitsubishi Fuso F series, a 6x4 tractor with a load capacity of 20 tons, only costs 6 US dollars. And we still have to rely on connections to go there. That's too much..."

From 81 to 84, a dual exchange rate system was implemented. The official exchange rate for non-trade settlement was 1:1.89, while the internal trade settlement rate was 1:2.80. Wang Yaotang's side settled according to the internal trade rate, but even so, he still suffered a great loss.

“Do you think production is so easy to coordinate? Even without this issue, we would still be investing.” Wang Yaotang said with a smile, “It’s not like Zhuhai is the only place with stone mines. There are plenty around Guangzhou. Wouldn’t it be better to just sell them to us and earn foreign exchange? Zhuhai is getting all the benefits, and other places are definitely not happy. If we really go to the provincial government, they will definitely try to treat everyone equally, at least on the surface. This is deliberately designed to let the car factory make the profit.”

"Doing things here is different from Hong Kong. The first thing to consider is definitely not whether or how much money we can make. Guangdong is so big that we have to take all aspects into account."

"I hadn't thought that far ahead. It's the boss who has such foresight and a keen mind," Jiao Peilin said with admiration.

Wang Yaotang blinked, so you deliberately started this conversation to flatter me!
Okay, it's quite comfortable.

The construction of the ore processing plant will take a considerable amount of time, but the supply of ore was arranged immediately with a single document, which is truly reassuring in terms of efficiency.

As long as it doesn't delay the progress of various projects in Hong Kong, the authorities have no reason to interfere.

With Wang Yaotang and Li Xiangjiao back to their old ways, Jia Hua gradually decayed, and everyone was waiting to see what would happen. However, before that, the auctions of 'Shek O' and 'Lamma Island' were the first to enter their countdown.

……

Six Lincoln Town Cars lined up and entered the parking lot. After the cars came to a stop, the first to get out was an 18-person security team led by Bisina. After setting up defenses in front and behind, Wang Yaotang opened the door and got out of the car, followed by A-Jie and A-Ji.

The Cadillac was airlifted to the United States for repairs. Without this top-of-the-line bulletproof car, Wang Yaotang's safety became a problem again. He could only arrange for the same vehicle to travel to create a false impression. To this end, Wang Yaotang ordered six more bulletproof cars from Mercedes-Benz, enough for all his brothers, with one extra as a backup.

Damn it, I'm clearly a generous and open-minded person, yet there are still despicable people who want to harm me!

"Has Li Xiangjiao arrived?" Wang Yaotang looked at Xiong Demin, who had come to greet him. At this point, the truth would be revealed, and there was no need to pretend anymore.

"No, but people from several other major real estate developers have arrived," Xiong Demin said.

"Ha, putting on airs? Big shots are always the last to arrive?" Wang Yaotang laughed.

"We're just beating people who're putting on airs!" Ah Jie sneered.

Xiong Demin was startled and looked at A-Jie and A-Ji with some suspicion. He knew that these two were Wang Yaotang's brothers, but they were usually in charge of the business of the gang and the security company. Why were they here today?
Are they going to do something horrific?
"Boss, this, this..."

"What's the big deal? You don't have to do it, why are you afraid?" A-Jie said with a smile.

Xiong Demin's expression changed drastically. "Are you serious?"
This is a public auction venue; not only are people from the Hong Kong government present, but also so many prominent figures. This is just too much…

As they were talking, two Mercedes-Benz cars drove up. Wang Yaotang waved his hand with a smile, "This is none of your business."

Xiong Demin nodded stiffly, then turned and ran quickly.

Whether you say Li Xiangjiao is just putting on an act or simply being low-key, he does indeed have a very low profile when he goes out. He is only accompanied by four white security guards, and the rest are his secretaries or subordinates.

As soon as Li Xiangjiao entered the parking lot, she saw a group of people standing in the middle of the road. A dozen or so people were dressed in black suits and sunglasses. They didn't look like good people at all. Without much thought, she knew it was Wang Yaotang.

As they got out of the car, their eyes met, and Li Xiangjiao saw Wang Yaotang leading his men over with smiles.

"Boss." Sheng Songsheng was a little nervous; the visitor didn't seem to have any good intentions.

Four tall, burly white security guards immediately stepped forward.

"It's alright, let him come over," Li Xiangjiao said, smiling as she went to greet him.

If he were scared and went back to his car in front of everyone, where would he put his face? Did he think he wouldn't attend the auction just because Wang Yaotang didn't leave?
He didn't believe Wang Yaotang would dare to do anything.

"Li Xiangjiao." Wang Yaotang walked over with a smile.

Li Xiangjiao smiled, took two steps forward, and extended her hand, "Wang Yaotang."

Looking at Li Xiangjiao's outstretched hand, Wang Yaotang curled his lip and said, "Sigh, no need for a handshake, I think you're dirty."

Li Xiangjiao froze on the spot, her face full of anger, her small eyes glaring at Wang Yaotang. She had never been insulted like this before. "Wang Yaotang, what do you mean!"

"I painstakingly set up this scheme, and you old bastard jump out halfway to try and steal the spoils, and you even ask me what I mean? Have you gone mad from making so much money?" Wang Yaotang cursed at Li Xiangjiao, looking down at him.

“Hey Wang, don’t go too far. In business competition, everyone has their own methods. If you can’t succeed, you can’t blame others,” Sheng Songsheng said loudly.

"Competition my ass! Who do you think you are? Do you even have a place to speak?" Ah Jie pointed his finger at his nose and cursed, "Everything has a first-come, first-served order. You guys have no sense of morality. What's wrong with cursing you? I'll hit you!"

With a wave of his hand, Ah Jie's men, who had been eagerly waiting behind him, suddenly lunged at the white security guards.

The white security guard took a step back and instinctively raised his hand to throw a punch.

Lu Shaotao ducked and rammed into him. The white security guard was startled, having never seen a fight like this before. He stumbled back a step, feeling a tightness in his chest from the impact, and, enduring the pain, reached out to hug Lu Shaotao.

Just as he grabbed Lu Shaotao, the others rushed up, taking a small step and throwing a punch at his head. The white security guard tried to raise his hand to block but found that his hand was grabbed. He had no way to dodge and took a solid punch to the face, his sunglasses flying off on the spot.

He cried out in pain, trying to forcefully shake off the person in his arms. Lu Shaotao took a deep breath and stomped on the white man's foot.

what--

He lost all his strength, couldn't move his hands, and his feet were in excruciating pain. He was hit several more times in the face, leaving him dizzy and disoriented. Lu Shaotao grabbed him by the waist and threw him to the ground, whereupon he was immediately swallowed up by the crowd.

"What are you doing!"

"Police, police!"

"Someone is hitting someone..."

"Shut up!" Ah Jie stepped forward and grabbed Sheng Songsheng by the collar. "If you fucking howl again, I'll hit you too!"

Li Xiangjiao was completely stunned. In his more than 30 years of business, he had never encountered such a situation. Chaos reigned all around him. His four bodyguards were overwhelmed in the blink of an eye, and those who couldn't get a foot in were staring at him with ill intent, looking ready to pounce at any moment.

Even someone as experienced as Li Xiangjiao in the business world was so frightened that she took a few steps back.

Old bastard started his business with the help of his uncle and married his cousin Zhuang Mingyue, which gave him a relatively high starting point. He skipped the early struggles and hardships. As his business grew, he only needed to eliminate his competitors after he had given his intentions. He never experienced that.

"Don't back down!" Wang Yaotang stepped forward, grabbed Li Xiangjiao's shoulder, and pressed half of his body weight on her. "Old man, weren't you very brave when you were picking the peaches? Didn't anyone tell you that if your hand is too far out, it will be chopped off!"

"Wang Yaotang, you, you, you! In business competition, you resort to such despicable tactics!" Li Xiangjiao looked around; these people were only beating his bodyguards. He quickly forced himself to calm down.

"Despicable?" Wang Yaotang made a gun gesture with his finger and rubbed Li Xiangjiao's forehead. "Stop pretending to be a big shot with me. Lu Zhihe has told you everything. He was hiding at your house that day. And now you're pretending to be innocent with me."

"You, me, that's Lu Zhihe, what does he have to do with me?"

"Ha, you think it's okay just because you say so? I think it was your idea that came up to him."

"What evidence do you have? You're making baseless accusations!"

"Evidence? Do you think I'm a police officer and I'm talking to you about evidence?"

The parking lot was in complete chaos. Soon someone ran inside to warn everyone, and the security guards at the entrance called the police early on. Before the police arrived, the bigwigs from the real estate and building materials industries who had come to attend the auction rushed out to see what was happening. As soon as they came out, they saw Wang Yaotang beating Li Xiangjiao...

Less than three minutes later, the sirens of police cars blared, and when the police arrived, the official person in charge of the auction also came out.

"Stop, stop..." (End of Chapter)