A century-old wealthy family that rose from Shanghai

11 month.

The shortage of ships in the Far East is becoming increasingly severe, and freight costs are extremely high. The most expensive routes are to northern China and North Korea, where freight costs have risen to US$150 per ton.

Of course, the dangers involved were very high. First, there were naval mines and the Nationalist government's navy deployed along the Taiwan Strait. Second, there were American warships in the northern waters.

Even so, some ship owners still take the risk because they can earn back the price of a second-hand ship in just one trip.

Huanqiu Shipping would naturally not take any risks. Being bombed was a minor matter; if they were caught by the Americans, the Chen Guangliang and Chen Guangcong brothers would be banned from entering the country and from doing business in the United States, which would be a greater loss than gain.

Chen Guangcong, as the vice president of Global Group, has already arrived in Japan with his team.

"Really? Mr. Chen, you're willing to lease six large ships to us long-term?"

At this moment, the president of Nippon Yusen Kaisha (NYK) Co., Ltd., Genichi Yasuda, was somewhat pleasantly surprised.

The Far East is experiencing a ship shortage, and Japan is even more severely lacking in shipping capacity. Nippon Yusen Kaisha (NYK) has a lot of shipping business, but it simply doesn't have enough ships.

Chen Guangcong thought to himself, "My brother really did plan this very well. These Japanese are indeed having a ship shortage."

He calmly replied, “That’s right, we can provide three 10,000-ton vessels, two of which are Liberty ships, two are 7800-ton vessels, and one is 5000-ton.”

As one of Japan's largest shipping companies, he believed the other party would really like the combination.

As expected, Yasuda Genichi became interested, and then deliberately hesitated before saying, "But how much is the rent, and how should it be paid? Also, which party should provide the sailors?"

Next, the two sides had a discussion, and the overall progress was very smooth.

The rental fee is roughly 8.5% of the shipping cost for a short-term annual rental (after deducting the short-term rest period, the shipping cost is not much cheaper).

Currency: 80% Japanese Yen and 20% US Dollar. If all payments are in Japanese Yen, the shipping cost will be discounted by 10%.

All seafarers must be from Worldwide Shipping.

Yasuda Genichi concluded, "Your conditions are excellent, but are your sailors capable of completing global transport missions?"

Seamen who look down on Chinese people?

Chen Guangcong firmly stated, "President Yasuda, we have been sailing to North America and Europe since 1946, and to South America since 1948. Our main routes are long-distance voyages to Europe and America. Our seamen are of very high quality, and completing the mission is not a problem."

"Alright, I believe you! After all, I've heard that Mr. Chen Guangliang was already a big figure in the shipping industry back in the 1930s."

"certainly"

Subsequently, Nippon Yusen Kaisha (NYK) immediately signed the contract, as they were waiting for the ship to be used.

Following the same method, Chen Guangcong leased half of Global Shipping's capacity, a total of 12 tons, to several major Japanese shipping companies in just ten days.

As a result, he received a formal reception from the Japanese government.

Global Shipping leases half of its capacity to Japanese shipping companies, while the other half sails between Hong Kong and Europe, Hong Kong and North America, Hong Kong and South America, Hong Kong and Southeast Asia, and even has a route from Hong Kong to Africa (South Africa).

In a short period of time, Worldwide Shipping became the largest and most powerful shipping company in Hong Kong, surpassing Jardine Matheson and Swire.

This move naturally threatened the profits of Jardine Matheson and Swire, but because the two shipping companies had already sold a lot of ships, they couldn't react in a short time; by the time they did, Worldwide Shipping had already captured a considerable market share.

"Damn it, that Chinese guy is so cunning!" John Keswick cursed angrily in his office.

Jardine Matheson bought at least 4 tons of shipping capacity, but it was all bought by Worldwide Shipping at a low price.

Now, watching Wharf Holdings make money right before their eyes, Jardine Matheson is naturally filled with regret.

An underling chimed in, "It's said that the fleet of Global Shipping at this time is the sum of our Jardine Matheson and Swire!"

"Snapped"

Keswick could no longer contain himself and said angrily, "Impossible! The sea belongs to us British. The Chinese are only fit to make a living on land."

He certainly understood that this might be true, because Global Shipping had also bought up a lot of second-hand ships in Europe and had almost wiped out all the second-hand ships being traded in the Hong Kong market.

Despite their anger, Jardine Matheson's loss of the shipping market was already a fact.

By 1950, Tsuen Wan was already lined with factories. Entrepreneurs from Shanghai had built factories in what was originally farmland.

However, with the US imposing a trade blockade on Hong Kong, these factories are under a dark cloud, facing a storm at any moment.

Chen Guangliang was also very concerned about the situation of Xinfeng Textile. He personally came to the factory for inspection. Tong Runfu accompanied him on the inspection and gave Chen Guangliang a detailed report on the work.

"After opening up markets in Indonesia, Pakistan, South Africa, and India, our staff has expanded to 4800."

It's not easy. Currently, there are only about 3 textile workers in Hong Kong, including 3500 garment factory workers. Sun Fung Textile already accounts for 20% of that.

Chen Guangliang was very satisfied with this achievement. In the South African and Indonesian markets, Xinfeng Textile held a dominant position, and other Hong Kong textile companies were not yet qualified to enter. South Africa was chosen because it was far away in Africa, and although it was a Commonwealth country, the distance was long and the technical requirements for textiles were very high. Indonesia was not a Commonwealth country, but it was indeed a major importer of textiles.

With these two markets, Hsin Feng Textile doesn't need to be too heavily involved in Southeast Asia.

Stepping into the textile workshop, one is greeted by modern 4S management, making it a top-tier factory in Hong Kong and even across Asia. Of course, to maintain high worker quality, good benefits are essential, at least significantly better than those of its Hong Kong counterparts.

The workers at Sin Fung Textiles are generally of a higher quality than those in other factories in Hong Kong.

"Amei, are you still training apprentices?" Chen Guangliang greeted an elderly female textile worker with a smile.

Amei was immediately excited. She didn't expect the boss to still remember her. The boss rarely came to the workshop, let alone the thousands of textile workers there.

"Yes, Mr. Chen," Amei said excitedly. "The company has recently expanded production, and many new colleagues have joined us."

Factory manager Zheng Shiying, standing to the side, chuckled and said, "Amei's production line has grown too long."

Amei immediately added, "They even gave us a raise."

This year, both her husband and she got promoted, and both received a 50% raise—they're practically winners in life! They now live in company dormitories, which are free, and they save a considerable amount of money every month, giving them hope for the future.

Chen Guangliang laughed and said, "They are all veterans of our textile factory. They paid a heavy price to set up factories in Hong Kong back then." Zheng Shiying said, "Yes, the conditions in the Hong Kong factory were very poor back then. Everyone went through that, and they were all far from home."

When we opened a textile factory in Hong Kong, we had to bring in skilled female textile workers from Shanghai, otherwise the quality of the production line could not be guaranteed.

Chen Guangliang nodded and said, "We all have a peaceful and prosperous life now. In a few years, we might be able to afford a house. Keep up the good work, Amei!"

"Yes, Mr. Chen, I will definitely do my best!"

Chen Guangliang remembered that Amei's husband was also an administrative staff member of the company. By the late 1950s, he should have been able to afford a house, since he had become an official.

Afterwards, Amei's apprentices exclaimed in surprise, "Boss, Mr. Chen actually knows you! You're really something!"

They were not recognized by the general manager or the factory manager, let alone Mr. Chen. But they knew that Xinfeng Textile was just one of Mr. Chen's businesses, and that Mr. Chen was a prominent Chinese leader in Hong Kong.

Ah Mei said, "When we first came to Hong Kong, Mr. Chen knew everyone very well. He has a good memory and knows many of the factory's old employees, hundreds of them. Everyone should work hard, and maybe one day Mr. Chen will recognize you too, and then you'll get promoted and receive a raise."

Yes, we must do our jobs well.

Chen Guangliang's arrival sparked a surge of high morale in the factory.

He said to Zheng Shiying, "In our textile factory, there are no workers earning less than 50 yuan, right?"

Zheng Shiying immediately replied, "No, the child labor rate is 50; the rate for entering the factory is never lower than 50."

Hearing about 'child labor', Chen Guangliang was not surprised. In this era, people don't go to school anymore, yet he pretends to be benevolent and righteous—if he doesn't use child labor, wouldn't that leave 14- to 18-year-olds who need to work with nowhere to go?

"Well, I don't mind earning less, but we want to make sure the workers' welfare and benefits are the best in Hong Kong."

Tong Runfu added, "Our profits have also increased after we opened up the markets in South Africa and Indonesia."

Chen Guangliang laughed and said, "So, this is a virtuous cycle. We provide good benefits to all employees, and everyone works to improve the quality of the products, which ultimately leads to good profits. The vicious cycle is that of small factories that squeeze their workers' welfare as much as possible, producing products that are only cheap in cost and otherwise worthless."

Everyone wholeheartedly agreed!

Of course, everyone has a different perspective. Small factories are just trying to survive, while some small factory owners make their fortunes by exploiting others, so their views are naturally different.

Subsequently.

Everyone accompanied Chen Guangliang to a warehouse, where they saw a huge amount of cotton and yarn spindles, which was quite shocking.

"You must be very careful about fire prevention! A single fire can burn down millions or even tens of millions of dollars worth of assets!"

"Yes, Mr. Chen, we implement strict management here."

Before the US blockade, Sin Fung Textile imported HK$10 million worth of US cotton as a cotton reserve, not including normal purchases. Now, with the blockade, the value of this cotton has increased significantly.

At that time, China was already experiencing a severe cotton shortage, with a gap equivalent to 1 to 1.5 months' worth of cotton consumption for factories nationwide.

During this era, China needed to import large quantities of cotton, mainly due to the damage the war inflicted on the cotton industry, and the Nationalist government's decision to import American cotton after the war, which completely destroyed China's cotton industry.

Tong Runfu said, "This cotton will ensure the competitiveness of Xinfeng Textile for the next few years."

Chen Guangliang nodded, and then he said, "Later, if any of our peers encounter difficulties with raw materials, we can provide some assistance. We can offer cotton at a discount to the market price, so there's no need to worry too much about gains and losses. This battle may last for two or three years, which is a challenge for Hong Kong's industry. Helping some of our peers is something we can do."

Everyone couldn't help but admire him.

Mr. Chen is benevolent and righteous.

Chen Guangliang waved his hand and said, "Alright, we're going to have to endure two or three tough years. If we can get through this, Hong Kong's industry will surely achieve remarkable results that will attract worldwide attention."

He came to encourage everyone and to set a benchmark for the industry.

Cotton can be sold at market price with a discount to fellow merchants facing difficulties; these are minor matters, since they won't lose money anyway.

Sin Fung Textile is itself a leader in Hong Kong's textile industry and has made a tremendous contribution to the entire Hong Kong textile industry.

In early December 1950, after the U.S. Department of Commerce issued a strict ban on exports to Hong Kong and mainland China, Japan, Canada, the Philippines, and other countries followed suit. No fewer than four or five hundred shipments of goods, valued at US$4 million, of pharmaceuticals, sheet metal, lead sheets, tires, and chemical raw materials destined for Hong Kong from the United States were intercepted in San Francisco, Japan, Manila, and other locations. Approximately 200 shipments, valued at US$2 million, were also seized by the United States before being loaded onto ships.

Under pressure from the United States on behalf of the United Nations, France, Belgium, Australia, South America, the Netherlands, Italy and other countries have successively announced controls on the transport of strategic materials to Hong Kong and mainland China.

Of course, for its own interests, Britain secretly sold a large amount of goods through Hong Kong.

According to later statistics, Britain sold over $300 million worth of goods in just six months, from October of this year to May of next year.

In a warehouse in Macau, Yang Xiaohu looked at the piles of supplies and felt as if he were looking at a mountain of gold.

More than six months ago, he was assigned by his elder brother to go to Macau to rent a warehouse and immediately began to stockpile supplies, including iron drums, sheet metal, medicines, communication equipment, rubber, gasoline and other supplies, at a cost of about HK$800 million.

Of course, these supplies are now worth at least HK$2400 million.

Yang Xiaohu picked up a box of penicillin, his hands trembling. This stuff must be worth three or four times more now, right?

"We need to act quickly, after all, the army is counting on this thing!"

Yang Xiaohu suddenly realized that his elder brother didn't want to help the other side, but his identity was too conspicuous, and his elder brother had a lot of assets in the United States, so he didn't want to do something that would cause trouble for himself.

But he was different. After the JF army entered the war, he had already sent his two ships, carrying goods, to venture north.

He did the math: if only one of the two ships returned, he would not only have gained one ship but also have some left over; if both ships returned, he would have gained two ships.

Soon, Yang Xiaohu found the Red Team in Macau. When they heard that Yang Xiaohu had urgently needed supplies and that the supplies were in Macau, they were very excited.

Following Chen Guangliang's instructions, Yang Xiaohu did not excessively raise the price. Instead, he offered a discount of 20-30% off the current market price to complete the transaction.

Both sides were very happy!

The main advantage lies in the fact that the supplies controlled by Yang Xiaohu are the things that the JF Army needs most, and they are already in the warehouse in Macau, making it very convenient to transport them back to the mainland.

Of course, leveraging his long-standing presence in the Guangdong-Hong Kong-Macau Greater Bay Area, Yang Xiaohu transported goods to Guangdong Province to obtain higher prices, while minimizing the risk for the other party. (End of Chapter)