A century-old wealthy family that rose from Shanghai

A New Year Comes (1957).

In December of last year, the three branches of the Chan family moved into villas No. 79, 80 and 77 in Deep Water Bay, which can be considered as the true ancestral home of each branch. They will not move there in the future, and at most they will temporarily live elsewhere when it is renovated or rebuilt.

Of course, these three villas will only be passed down to the eldest son and grandson of each branch of the family.

On New Year's Day, the first and second wives reunited at 79 Deep Water Bay to celebrate the holiday. As for Audrey Hepburn and her two children, they will not come to Hong Kong for the Lunar New Year.

After all, Audrey Hepburn was quite busy at this time, running two businesses: 'Monaco Beach' and 'Audrey Toys', and also taking care of two children. She would probably come to Hong Kong three or four times a year, staying for ten days to two weeks each time. And when Chen Guangliang went to Europe, he would ask her to accompany him.

This New Year's Day, the eldest son, Chan Man-kit, spent the holiday at home, Chan Man-kam was still busy with his career, Chan Man-ming will graduate and return to Hong Kong in six months, and Chan Man-kai and Chan Lok-yee have been studying at universities in the United States for six months. In a short time, the second generation of the Chan family have all come of age or have already joined the workforce, which can be described as a prosperous phenomenon.

For Chen Guangliang, he hopes that the second and third generations of the Chen family will be very capable, and at the same time, they will run the family business according to his own opinions.

Many families inevitably encounter various problems by the second or third generation. Take the Cheng Yu-tung family in the past, for example. His son, Cheng Kar-shun, took over in the late 1980s, but his reckless expansion led to heavy debt, forcing Cheng Yu-tung to return to the helm. And that wasn't all. Cheng Yu-tung's eldest grandson, Adrian Cheng, later took over, and from the peak of the real estate market in 2017, he spent a staggering HK$170 billion, leaving New World Development heavily indebted. Cheng Kar-shun had to appoint his daughter as the new head of the family, and the third-generation leader had to be selected again.

This is a real-world example!

Therefore, Chen Guangliang hopes that the second, third, and fourth generations of his family will take over the family business under his guidance, rather than taking over at the peak, and instead focusing on "buying low and selling high." He only provides the "outline," while the "details" are left to them.

The cycle, this is extremely important!
Inside the villa, Chen Wenjie helped his grandmother Yang Hui downstairs. His steady demeanor pained Yang Hui.

"When I think back to when I was little, if my younger siblings did something wrong, you would be punished along with them, and it breaks my heart!"

“Grandma, that’s the kind of example I should set as the eldest brother. Besides, our family’s ‘punishment’ isn’t ‘beating,’ but rather ‘education’ rather than ‘authority.’ I don’t think there’s anything wrong with it!”

"Good, good grandson! By the way, when are you and Yuanzhen getting married? I'm really looking forward to holding my great-grandson!"

"It'll be soon! Yuanzhen and I have been back in Hong Kong for half a year now. Once we get to know each other better, we can consider getting married and having children. Don't worry!"

"That child, that's a beautifully said statement."

Other children might have answered, "You'll have to ask your parents."

Chen Wenjie knew that his marriage arrangements with Yuan Zhen were also to be decided by his parents, but he did not give that answer.

Before long, Yang Hui brought up the matter in front of Chen Guangliang and Yan Renmei.

Chen Guangliang said, "Let's choose a date in the second half of the year. Yuanzhen's work at Ping An Bank has just gotten on track, and it's a good life experience."

Yang Hui muttered, "What kind of experience is this? I'm still waiting to hold my great-grandchild!"

For her, a woman is someone to marry and have children with.

Yan Renmei immediately took Yang Hui's arm and patiently said, "Mom, times have changed, and our family is different too. When we marry, we want a virtuous wife, not just anyone who will have children."

Yang Hui then said, knowing when to stop, "Alright, alright, marry a virtuous woman. My eldest son married a virtuous wife like you, and of course, Mei Ying is very good too!"

Everyone laughed. The old lady was still 'pragmatic' and never embarrassed the head of the family.

On the first day after New Year's Day, Chen Guangliang arrived at the Ping An Bank Building on Garden Road.

He deliberately opened the window of his Rolls-Royce near the building and glanced at the Ping An Bank Building a few times.

The Chinese-style 'moon arch' is particularly eye-catching. The 15-story building is no longer the tallest building in Hong Kong, after all, residential buildings now have 17 to 22 stories.

However, with the completion of Lane Crawford Building on Queen's Road Central, Hong Kong's tallest building remains in the hands of the Chan family.

The meeting room of CK Asset Holdings Limited.

The first high-level meeting of the new year was held, and the eldest son, Chen Wenjie, also attended. The dozen or so senior executives in the meeting room represented a 'generational transition'.

The senior executives attending the meeting included those from the four major business units of Cheung Kong Property, Shangri-La Hotels, Poly Construction, and Cheung Kong Property (Commercial).

"How are the three sites owned by Cheung Kong Property doing?"

Upon hearing this, everyone turned their attention to Chen Wenjie, since the boss had specifically entrusted these three plots of land (five buildings) to the eldest son.

Chen Wenjie immediately sat up straight and reported, "Construction on these three sites began last year. According to current practices in the Hong Kong real estate industry, they can be sold off-plan at any time. However, our plan is to sell them in three batches, in mid-March, March, and May. Based on the current market conditions in Hong Kong, these 1060 residential units can bring in 3500 million HKD for construction."

After listening, Chen Guangliang didn't say anything and immediately moved on to the next topic.

"As Cheung Kong Holdings has grown to its current state, it can no longer rely solely on real estate. Otherwise, I wouldn't have brought Vitasoy into the group back then. Therefore, I plan to leverage Lane Crawford and Global Trade to enter the supermarket market. By supermarket, I mean a large self-service shopping market. I'll give you a month to produce your own research report and proposal."

"Ok"

In its previous life, Hong Kong supermarket originated from a joint venture between Lane Crawford and Dairy Farm. Later, Dairy Farm was acquired by Hongkong Land, which in turn acquired other brands, forming Wellcome, a supermarket chain with a high market share in Hong Kong.

In this life, Chen Guangliang naturally doesn't need to wait for the future to acquire other brands; he plans to take the lead in building his own brand – Huikang Supermarket.

Supermarkets and shopping malls will be developed first by Cheung Kong Holdings, leading the way in Hong Kong's commerce.

As for the shopping mall, the current Hong Kong Hotel and Lane Crawford Building will be demolished, but this will have to wait until the new Lane Crawford Building is completed before it can begin.

It is projected that in the early 1960s, Hong Kong will have its first shopping mall – Cheung Kong Plaza (the location of Landmark in the previous life), which will be four or five years earlier than Ocean Terminal, the first shopping mall in the previous life.

After the meeting, Chen Guangliang summoned a veteran official, Lin Hongying.

"Hongying, I remember you're a Christian, right?"

"Um"

Chen Guangliang then said, “There’s a small hotel on Nathan Road founded by a Spanish priest. I heard it was originally built to accommodate clergy who were expelled from the mainland, but now these clergy have gone to various countries around the world to take up their posts, so the priest’s hotel is open to the public. But as far as I know, it’s not good for churches to do business, it’s not good for missionary work. Maybe they’ll consider selling it. Of course, you should inquire about it first, or start with the parishioners there and wait for the right opportunity.”

Upon hearing this, Lin Hongying readily agreed, "Okay, I'll go and inquire first. I'll definitely try to secure it for the company if I get the chance."

Chen Guangliang laughed and said, "It's not that we necessarily have to acquire it, but the price has to be reasonable. These churches own a lot of land in Hong Kong. I remember that a church site in Causeway Bay was also acquired by Fok Ying-tung."

"Yes, I understand what you mean!"

Finding a bargain is of course the best option, but teaching someone won't lead to price gouging.

The average price of residential land in Hong Kong has been driven up to HK$150 per square foot. What does that mean?
以一副地皮2万平方尺为例，地皮费就要300万；而建筑费大概需要150万，形成了地皮费：建筑费达到了2:1。    而在1955年的建筑条例刚刚颁布时，地皮费和建筑费的比例为1:1。

With a land cost of 300 million and a construction cost of 150 million, the total cost could reach 500 million if taxes and interest are added. If calculated based on a building area of ​​18 square feet, the total value would be over 700 million, and the profit is not high.

Even so, Hong Kong's major property companies are still expanding at a frenzied pace; because in everyone's view, if a plot of land can still earn 200 million by selling apartments off-plan, it is obviously a very lucrative business.

After all, there aren't many real estate companies with assets in the tens of millions!
In the past year (1956), Hong Kong's trade recovered from its slump, with total trade reaching HK$79.8 billion, an increase of HK$15 billion. Industrial output also grew rapidly, reaching HK$46.8 billion, and per capita GDP exceeded HK$2030.

In 1954, Hong Kong's per capita GDP was only HK$1450, so the growth rate was quite fast.

Some media outlets have analyzed that in the past year (1956), the output value of plastic flowers in Hong Kong reached more than HK$8000 million, the output value of wigs reached HK$5000 million, and the output value of toys also surged. These were the three new industrial categories that saw a surge in Hong Kong.

Hong Kong's industry has experienced explosive growth, and Cheung Kong Industrial Group is undoubtedly a "giant" in Hong Kong's industry.

The group generated HK$2.5 million in revenue last year, with a net profit of approximately HK$3000 million.

Although Cheung Kong Industrial Group is engaged in industries that are not very technologically advanced, it is certainly worthwhile if it can bring jobs and contribute to Hong Kong's economic development.

this day.

Chen Guangliang then came to the Xinfeng Textile Industrial Park in Tsuen Wan, where a newly built eight-story industrial building has now become a garment and textile workshop.

He went to one of the floors and saw that they were producing 'bags'.

"Boss, these are the rolling suitcases we produce using fabric, leather, and plastic," Ke Ming, the person in charge of the rolling suitcases, introduced to Chen Guangliang.

Beside him is Lin Jianyun, the head of the ready-to-wear business, whose responsibilities include ready-to-wear manufacturing, ready-to-wear brands, and leather goods and bags.

Chen Guangliang picked up a leather suitcase, which was obviously the most valuable and had the best appearance, but it would be difficult to penetrate the ordinary market.

Manufacturing a rolling suitcase isn't particularly difficult; it's simply a matter of adding a telescopic rod and wheels to the bag. However, to make a good rolling suitcase, one needs both research and development capabilities and the ability to produce high-quality products.

Have you registered a patent?

"We have successfully registered our patents in both the UK and the US, and we are already preparing to market them to the world through sales channels such as flight attendants and pilots."

It's impossible to mass-produce suitcases in Hong Kong and then sell them worldwide. First, there are the high shipping costs, and they take up too much space; second, different countries have different local preferences, just like with clothing.

Therefore, Travelpro mainly relies on collecting patent fees, and also produces some suitcases locally for export, but these must be branded suitcases to truly make a profit.

"Yes, I believe pilots and flight attendants will like this product. In addition, Travelpro luggage is determined to maintain its brand, so we will continue to conduct research on technology while striving for excellence in quality."

"Yes, boss"

The investment was small and the number of R&D personnel was limited, but Chen Guangliang felt that this was a product that would change people's lives and deserved attention.

This Spring Festival, Chen Wenjin, the eldest son of the second wife, came to the study. He was somewhat excited, knowing that his real career was about to begin.

The Barbie dolls developed by 'Audrey Toys' can now sell up to 30,000 units per month, with a market price of $3 each, but this is still a small business; moreover, the company name 'Audrey Toys' also means that it is not Chen Wenjin's business, even though he joined it from the beginning.

"I've reviewed your information about shopping malls in the United States, which shows you've done thorough research and investigation over the past six months. Before we begin our formal discussion today, I'd like to ask you a few questions."

Chen Wenjin quickly straightened his back and said, "Father, please speak!"

At this moment, Jiang Meiying, who was standing to the side, also became somewhat expectant. It was true that she had more than 5000 million in wealth, but it was all in real estate, securities, cash flow, etc., and she did not have a real business in the United States.

Now that the eldest son has grown up and gained his father's approval, this marks the true beginning of their second family's business.

"Do you want to get into real estate?"

"I think it's worth considering. I believe real estate is a long-term career because, with the development of the global economy, real estate will inevitably become an important industry in various countries, and this industry also has its stability."

Chen Guangliang then asked, "So, do you want to get into securities?"

Chen Wenjin said, "Given sufficient funds, I think value investing is a more ideal investment approach. Of course, securities carry significant risks and can only serve as a supplement to investment, not the primary investment strategy. Unless, of course, my father instructs me on how to invest in securities!"

Pretty smart.

Then, Chen Guangliang said, "Well, I plan to have you develop in the real estate and securities industries in the United States. After you have experience and strength, you can invest in other industries. In real estate, it's not about simply collecting rent, but about investing in 'Amazon' branded shopping malls with air conditioning. This will become the mainstream shopping mall development in the United States. The core tenants (all-inclusive department stores) are already a model in the United States, so it won't be difficult for you to learn. But our Amazon branded shopping malls also need to have their own unique features. Think about the clustering effect of shopping malls!"

Chen Wenjin nodded and said, "Shopping malls are usually located in the suburbs, which happened to be the time when the United States was suburbanizing in the 1950s. They have features such as central pedestrian plazas and underground freight tunnels."

Chen Guangliang asked, "So, do you think that just because you've attracted a lot of people, shopping malls are only for shopping?"

Chen Wenjin was somewhat puzzled, after all, he didn't have that much foresight.

"What does father mean?"

"Shopping malls have a stimulating effect on surrounding development. Mixed-use developments—hotels, office buildings—that's what mixed-use development is all about. This model should be the first of its kind! Of course, whether hotels and office buildings should be included depends on the population and area your shopping mall serves, as well as its scale. Going forward, you can develop a pure shopping mall while also thinking carefully about commercial complexes, step by step. I will keep an eye on you."

Chen Wenjin is only 23 years old, so as a father, he naturally has to offer advice and suggestions from behind the scenes.

"Thank you, Father. After returning to the United States, I immediately assembled the team for Amazon Shopping Center."

"Remember, we need to focus on locals. We're not just developing in the Chinese community, we're developing across the entire United States. Even if we have wealthy American businessmen as partners, that's fine. After all, the funding we need later won't just come from self-financing; we'll also need to make full use of methods like equity investment. Localization is very important. Don't think that just because you're Chinese, you're American!"

"I see"

From the time he went to high school in the United States, he tried to make friends with white people and integrate into American society. Although he encountered some problems, he was very strong-willed.

To do business in the United States, you naturally need to localize!
"Furthermore, venture capital is worse than securities investment. You can look into new hotel chains like Holiday Inn, or American fast-food companies like KFC and McDonald's. These all have good future prospects. Of course, securities investment is also an option, like Coca-Cola and Pepsi. I will have your mother give you $1000 million to develop real estate and securities. I hope you will proceed steadily and keep in touch with me."

"Yes, I will definitely keep in touch with my father. After all, I know your foresight is unparalleled in the world. If I don't listen to your advice, wouldn't I be abandoning you, my greatest support?"

Chen Guangliang patted his son on the shoulder and said, "Listen to me, you won't go wrong. Of course, I can only give you pointers; you'll have to build your own empire yourself."

"Yes, I will definitely not disgrace my father!" (End of Chapter)