A century-old wealthy family that rose from Shanghai

On the French Riviera between France and Italy lies a tiny island—the Principality of Monaco. This small principality lies peacefully and untouched on the Mediterranean coast, with no customs duties, no army, and no tax collectors. It is famous for Monte Carlo, the world's gambling capital, and its income mainly comes from tourism and casinos.

There is also an alluring beach company that operates above the government, and it is often frequented by the world's richest people, royalty and nobles from various countries, and their beautiful wives.

However, these were all prosperous scenes before World War II.

After World War II, these wealthy nobles grew tired of the Monte Carlo casinos and went looking for new paradises, causing this once prosperous little principality to decline and teeter on the brink of bankruptcy.

Its ruler, Prince Rainier III, was forced to prepare to auction off the seawater bathing company that had once been the duchy's cash cow.

Upon hearing the news, Chen Guangliang, who was far away in Hong Kong, immediately took a plane to the location.

When Chen Guangliang arrived in Monaco, he was accompanied by Audrey Hepburn, his younger brother Chen Guangcong, and his European investment advisor Brownie, among others.

They did not choose to travel on the 'British American' superyacht because Chen Guangliang felt it would attract too much attention.

Upon arriving at the beach of the bathing resort company, Brownie gave Chen Guangliang a detailed report: "Mr. Chen, the assets under the bathing resort include: a casino in Monte Carlo, a yacht club, a Paris hotel, and one-third of the country's coastal land, including many historic properties from the Edwardian era."

Chen Guangliang looked at the azure coastline, his heart filled with emotion. He then turned back and asked, "How should I acquire it?"

Brownie is a senior British investment talent whom Chen Guangliang met at a dinner party in London, after which Chen recruited him to work for him.

He said confidently, “You have no competitors; all investors are pessimistic about the beach resort. Of course, for safety’s sake, your low-key arrival here this time is a very wise choice. My advice regarding the acquisition of the beach resort is to first acquire its shares outside the market and quietly own it. When Prince Rainier III auctions off the government’s shares, you will already be the largest shareholder, and then you can own it entirely.”

Makes sense!
If the shares of Prince Rainier III were acquired first, other retail shareholders would be eager to get a share and wouldn't sell their shares so easily. Although Chen Guangliang had a way to dilute everyone's shares through capital injection, he still didn't want to share this asset with anyone.

Then, Chen Guangliang added, "After buying the beach, how should we manage it?"

Brownie thought for a moment and said, "Currently, it seems that only investment and infrastructure upgrades can revive it. The European economy isn't doing well either, but if it recovers, things can improve."

Chen Guangliang nodded; he thought so too.

He then said, “Okay, let’s first assemble a team. We’ll recruit investment and management talent from Europe and America, acquire the bathing beach, and plan for upgrading its facilities. I’ll hold 50% of the shares in this investment team, Audrey, you’ll hold 40%, and Guang Cong, you’ll hold 10%. I’ll provide all the funding.”

Upon hearing this, Chen Guangcong quickly said, "Brother!"

"Okay, okay, stop being so dramatic!"

"Yes, brother."

Afterwards, everyone toured the beach as tourists, and Chen Guangliang also tentatively considered what amazing strategies he could use to give the place a fresh new look after buying it.

With his abilities, it was naturally not difficult, and he quickly grasped the situation.

A few days later, Chen Guangliang concluded his low-key inspection of Monaco and left.

The 'investment management team' led by Brownie officially and secretly acquired scattered shares of the bathing beach and kept an eye on the auction time; in addition, Audrey Hepburn became the apparent owner of the bathing beach and later served as the chairman; while Chen Guangliang and Chen Guangcong actually served as directors and investors, providing support behind the scenes.

Back at the London estate, Chen Guangliang said to Audrey Hepburn beside him, "My 50% stake will be yours sooner or later. When we develop the beach resort, you will be the uncrowned queen of this 20,000-square-meter land."

Audrey Hepburn said with a mixture of surprise and caution, "If the Wang family of Monaco finds out, they might kick us out!"

Chen Guangliang took note of what seemed like a casual remark—because he knew that the Monaco royal family would indeed be envious if the beach resort made a lot of money.

Of course, this is not a reason to stop him from investing.

"Rest assured, we are legitimate investors!"

Audrey Hepburn was immediately filled with longing. Now, following Chen Guangliang, she not only invests heavily in properties and securities in London, but also gets involved in the businesses of Mattel (Barbie dolls) and seawater bathing beaches.

In a short time, she gradually became a 'businesswoman'.

Of course, Audrey Hepburn's primary responsibility was taking care of her two children, while others shared the burden of her career.

Back in Hong Kong, Yan Kuan of Cheung Kong Property told Chen Guangliang some good news: "Boss, Cheung Kong Holdings has acquired a 21-square-foot warehouse site in Causeway Bay from Brunner Mond Company, equivalent to half a street of Paterson Street (one side of the street is covered), for a total of HK$650 million. With this project, we no longer need to do any other scattered projects!"

Upon hearing this, Chen Guangliang knew that this was the business that had been seized from Zhang Yuliang's family in his previous life.

“Okay, this land can’t be easily planned as a ‘commercial and residential building.’ I’m going to consider investing in a ‘commercial complex’ center in Causeway Bay. Let’s discuss it properly later!”

"it is good"

In its previous life, this area consisted of seven mixed-use commercial and residential buildings and the Daimaru Department Store, so this development model wasn't a problem. However, Chen Guangliang believed it was still too wasteful for Cheung Kong Holdings.

He plans to build a commercial complex on this half of the street, including a shopping mall, an office building, four apartment buildings, and serviced apartments.

In his previous life, Zhang Yuliang's family lacked the financial resources and vision to create something better; but in this life, with Chen Guangliang's wealth, it was naturally a piece of cake.

As a result, in this wave of real estate development, Cheung Kong Holdings could only sell the site at Public Square Street.

The land cost only HK$360 million, but it can be used to build 1200 residential units, which can be conservatively estimated to sell for HK$3000 million. Even after deducting construction costs and taxes, the profit would still be a full HK$2000 million.

As for the debts of Cheung Kong Holdings, there is absolutely no need to worry about them!

Firstly, the current annual rental income is around 5 million, Lane Crawford's annual profit is over 1 million, and Shangri-La Hotel's annual profit is one to two million.

The rental income of Cheung Kong Holdings alone can reach eight or nine million Hong Kong dollars.

In reality, Cheung Kong Holdings' debt is simply a matter of Chen Guangliang borrowing and lending money from his own pocket; his cash flow is still quite ample.

Zhu Guangsheng arrived at his eldest son Zhu Shaoyong's wig factory, where he saw forty or fifty workers busily working.

"Shao Yong, how's business?" "Dad, business is great! Now, as long as my factory produces something, I don't have to worry about not being able to sell it. We can make a couple hundred wigs a month!"

Zhu Shaoyong was happier than ever when talking about his factory.

Their family has been in Hong Kong for six years, during which time they have invested in many businesses, but most of them have ended in losses; the US$22 that the father brought to Hong Kong has almost all been lost.

Just when he was about to mortgage the property, his father ran into his old friend Mr. Chen Guangliang and casually mentioned it, which led to his current wig business.

Zhu Guangsheng said happily, "We really have to find the right person! Our family has invested in seven or eight businesses since we came to Hong Kong, and we've lost money or been cheated in every single one of them. Thanks to Mr. Chen for his guidance, he took us to visit Rebecca's wig factory and gave us some pointers."

Zhu Shaoyong nodded, recalling how his family had struggled to adapt to Hong Kong after arriving, and how no business they tried went smoothly. Their grain store was robbed and they were cheated by Cantonese people while doing foreign trade, almost having to sell their property.

“By the way, Father, our factory can now supply not only distributors, but also sell any inventory we have to Rebecca. They’re willing to sell it for us; it’s a sure-fire way to make a profit. Last month, our profit was 3!” “That much?”

"Yes, according to Rebecca's general manager, Hong Kong wigs are seizing the global market share, conservatively estimated to reach 70%, the prospects are limitless!"

Zhu Guangsheng was happy, but mainly because his family had this factory, they wouldn't have fallen into ruin. They could earn two or three hundred thousand Hong Kong dollars a year. In addition, with the guidance of his friend Chen Guangliang, they bought two properties, which finally stabilized their decline.

Actually, it's also his fault for being greedy and ignoring the principle of "not adapting to local conditions." He has invested in several businesses in recent years, but none of them have been successful.

"I need to prepare a gift and go see Mr. Chen. This relationship needs to be maintained; Mr. Chen is very sentimental!"

"Yes, Dad, Mr. Chen is really nostalgic. This time, many of the wig business owners are from Shanghai and Ningbo. Everyone went to learn from him, and Rebecca was always there to help."

That's not entirely true. It's more accurate to say that most wig businesses are run by factory owners in the Yangtze River Delta region (Jiangsu, Zhejiang, and Shanghai). If a factory owner from Guangdong came to her door, Rebecca wouldn't refuse.

Oriental Daily News: Rebecca Wigs, Hong Kong's first wig factory, opened last August. In just nine months, Hong Kong has grown to fifty or sixty wig factories, exporting tens of thousands of wigs and generating tens of millions in revenue. Rebecca Wigs, belonging to the Cheung Kong Industrial Group, is owned by Mr. Chan Kwong-leung. With a selfless spirit, Mr. Chan allowed Hong Kong factory owners to visit the Rebecca factory and openly discussed the sources of wig raw materials (real hair) and wig manufacturing machinery.

Sing Tao Daily: Hong Kong's wig industry has developed rapidly, growing from zero to tens of millions in just nine months. This is thanks to Mr. Chan Kwong Leung's Rebecca Wig Factory, which is known for its integrity and allows industry peers to visit and inspect the factory.

Such news is rampant in Hong Kong media.

While what he said was true, Chen Guangliang had already publicly stated in an interview with Oriental Daily News: "I am a businessman, not a philanthropist. They (business owners) went to Rebecca for internships and worked for free. Moreover, making wigs is not like other industries. If they don't learn anything at Rebecca, they will find other ways, and even if they take some detours, they can still succeed. The prosperity of Hong Kong's wig industry benefits everyone!"

At the same time, Hong Kong's wig industry is indeed booming, and more and more factory owners are joining the industry. It has the potential to become a global monopoly in wig production within a short period of time.

At that time, Hong Kong's wig industry will form a huge market with a scale of hundreds of millions of dollars.

"Brother Zhu, what brings you here today?"

Chen Guangliang accompanied Zhu Guangsheng and sat down on the sofa in the office, his smile genuine.

He was also an "old man" and cherished the old times. He treasured his friends from his days in Shanghai the most, and Zhu Guangsheng was one of them.

When making friends, you don't need to care whether the other person is rich or not, because you won't be as rich as them anyway.

"Thank you," Zhu Guangsheng politely thanked Chen Guangliang's assistant, then touched the teacup, clearly somewhat excited.

"Come and see Mr. Chen."

"Look at me, I'm doing well. My old friends from all over the country are here in Hong Kong. It's fate that we can meet again. I'm lucky to still be alive!"

Zhu Guangsheng nodded happily and then said, "I have to thank Mr. Chen! When I learned that you had come to Hong Kong, I felt that I had to come to Hong Kong too, and I couldn't stay on the mainland. After I arrived in Hong Kong, it was Mr. Chen who guided me to invest in property. Otherwise, I would have lost all my money in business these past few years. And recently, Mr. Chen has guided us to open a wig factory and has taken care of us in various ways. Finally, we can stabilize our business."

Chen Guangliang waved his hand and said, "Don't be so polite, we're all friends. Besides, if you don't make wigs, someone else will. In a few years, there will probably be hundreds of wig factories in Hong Kong."

Zhu Guangsheng said, "In the end, it was you who took care of us and allowed us to get ahead of others. It's just a little thing, Mr. Chen, please don't mind it!"

Upon seeing that it was an antique porcelain piece, Chen Guangliang immediately became displeased and said, "Brother Zhu, we don't do this kind of thing between us."

Zhu Guangsheng knew that Chen Guangliang didn't care at all; it was just that he had always received help from others, and it would be wrong not to reciprocate.

Besides, now that the items have been taken out, they naturally cannot be taken back.

He explained, "This Ming Chenghua blue and white porcelain bowl with melon and vine design is a small item in my collection and is not worth much."

Seeing Zhu Guangsheng's state, Chen Guangliang immediately wrote a check for HK$5 and handed it to him.

"If you don't take it, I can't take it either. We're friends to begin with!"

"Let's do as Mr. Chen says."

Then, the matter was considered closed.

Chen Guangliang inquired about Zhu Guangsheng's children and learned that his eldest son was running a wig factory, his second son worked in a grain store, and his daughter had already married.

"Brother, you might want to check out plastic flowers lately. It's an emerging industry with good prospects. If you're interested in investing, take my business card and visit Huatai Plastics Factory."

Zhu Guangsheng said with delight, "Mr. Chen is so kind to me!"

Chen Guangliang waved his hand and said, "But let me be clear from the start, opening a factory always carries risks, so you need to think it through. As for thanking me, there's really no need. The plastic flower factory will be open to Ningbo factory owners sooner or later, and anyone interested can come and visit. As for whether the business can succeed, that depends entirely on your own abilities."

"understand"

Chen Guangliang nodded. Whether it's the wig industry or the plastic flower industry, Yangtze River Industrial Group, with its financial strength and leading advantage, has always maintained a market share of over 20%, which is not a problem.

After all, although Li Jiacheng was a pioneer of plastic flowers in Hong Kong in his previous life, his financial strength was slightly insufficient during the expansion. Even so, in 1959, the total export value of Hong Kong's plastic flower industry was HK$1.6214 million, equivalent to US$2850 million (the exchange rate of US dollar/Hong Kong dollar was about 5.69), accounting for about 18%.

It's not impossible for Yangtze River Industrial Group to account for 30% of these two industries!
The reason I'm introducing this recipe to you now is simply to offer you some soup or broth; it doesn't mean Chen Guangliang doesn't want to make money. (End of Chapter)