A century-old wealthy family that rose from Shanghai

It’s a new year again (1959).

Kowloon, Kwun Tong, Ngau Tau Kok.

Rongchang Heavy Industry bought a piece of land here to serve as its second ship dismantling site.

At this moment, more than a dozen large ships were moored here, awaiting inspection.

Chen Guangliang personally boarded a second-hand ship and began inspecting it, accompanied by his nephew Chen Wenbo and other personnel.

"The ship is 30 years old and its equipment is still in good condition. If it is properly maintained and repaired, it can be used for more than 5 years."

Chen Wenbo quickly replied, "Yes, Uncle, this ship is ready for maintenance and repair, not for dismantling. Of the 24 ships we bought from European and American ports this time, nearly half are still operational."

Chen Guangliang nodded. This nephew was quite conscientious in his work and not a spoiled brat.

His younger brother only had one son, and Chen Guangliang sometimes personally trained and arranged Chen Wenbo's work.

Chen Guangliang said:
"The shipbreaking industry is a large industry. Every year, a considerable number of ships are waiting to be dismantled. At the same time, the form of shipping also affects the development of the shipbreaking industry. For example, the world shipping industry is currently in a slump. Ship owners in Europe and America believe that it is more profitable to sell such ships cheaply rather than continue to operate them or leave them in port. Therefore, the number of ships waiting to be dismantled has increased significantly."

"On the other hand, Rongchang Shipbreaking must take the lead in Hong Kong's shipbreaking industry, set standards for shipbreaking processes, and eventually share practical experience. I know that more Hong Kong people will see the business opportunities here, and the uneven quality of shipbreaking teams will exacerbate pollution. As leaders, we must set some shipbreaking processes and work with the Hong Kong government to regulate the shipbreaking industry."

Qiao Guanchang, head of Rongchang Ship Dismantling under Rongchang Heavy Industry, took notes of his boss's words and then said, "Last year, we studied ship dismantling technology and went to Europe and America for research. We have mastered relatively advanced ship dismantling technology. We will also summarize our experience from recent practical operations and compile a report later."

Chen Guangliang immediately said, "Just give it to me."

"Ok"

The shipbreaking industry inevitably pollutes the environment, but compared to Hong Kong's economic development, it is an industry that must be developed.

This wave of shipbreaking industry is bound to be booming for three years, because the world shipping industry is experiencing a downturn, and ship owners are replacing their ships with newer and larger vessels.

If Hong Kong seizes the opportunity, it is equivalent to creating a huge industry worth tens of millions of Hong Kong dollars every year. The steel produced from ship dismantling can be reforged and used in construction sites, forming a virtuous cycle.

Later, Qiao Guanchang reported: "Boss, the British military is interested in having us dismantle their aircraft carrier. They believe that our ship dismantling technology is relatively standard, and that we have the scale and equipment to do so."

The so-called 'aircraft carrier' refers to the aircraft carrier from World War II, which is not comparable to aircraft carriers of later generations.

"That's a good thing. Dismantling more aircraft carriers and warships is a considerable business. You can negotiate it yourself!"

“Great, it just so happens that Hong Kong’s construction industry is recovering right now, which increases the demand for steel. Rongchang Heavy Industry can take as much steel as they can from the dismantling.”

Today, Hong Kong has more than just Rongchang Heavy Industries as a steel plant. Pang Dingyuan has also built a steel plant in Tuen Mun, as well as two other steel plants.

However, Rongchang Heavy Industry supplies nearly half of Hong Kong's construction steel needs. If imports are excluded, the other three steel mills account for a very small share.

Rongchang Shipyard employs two ship dismantling methods: Kwun Tong Wharf uses 'beach dismantling' and Tseung Kwan O Wharf uses 'floating dismantling'.

Later.

When Chan Kwong-leung arrived at Tseung Kwan O Pier, he saw the method of 'floating pier demolition'.

"Floating dismantling at the dock" is a common method of ship dismantling. It involves securing the scrapped ship to the dockside using mooring facilities, and then safely dismantling the ship section by section using shore-based dismantling facilities and floating cranes.

Qiao Guanchang explained, "During the dismantling process, we completely surround the vessel to be dismantled with oil booms to prevent the spread of oily wastewater. At the same time, oil-dumping vessels collect the oily wastewater floating inside the booms for environmentally friendly treatment. This step alone is enough to be included in ship dismantling textbooks and standardize Hong Kong's ship dismantling industry."

After he finished speaking, his eyes revealed pride.

When an industry leader becomes the dominant player and sets the rules for that industry, it naturally has reason to be proud.

Of course, all of this is inseparable from the boss's emphasis on protecting the environment as much as possible.

"Yes, draft the guidelines as soon as possible. I need to submit them to the Hong Kong government to regulate the industry. On the other hand, we're also preparing for the Shipbreaking Association. You'll be taking over as its chairman later."

"Yes, boss"

The Chan family wields considerable influence in Hong Kong. The textile association, garment association, plastic flower association, plastics association, and wig association are all under the management of the Cheung Kong Industrial Group.

Moreover, everyone has to admit that Cheung Kong Industrial Group is the 'leader' and 'founder' in these fields.

"Rongchang Ship Dismantling Plant is hiring. Room and board are provided. The internship salary is 80 yuan/month, and the salary after becoming a regular employee is 100 yuan/month."

Once this message was seen, it immediately attracted a large number of applicants.

Although it was already 1959, wage growth in Hong Kong was still very slow, thanks to the continuous influx of cheap labor from the mainland; and due to the impact of cheap labor from the mainland, the wages of local citizens naturally could not rise.

In the late 1940s, Hong Kong workers earned between HK$30 and HK$80, but ten years later, their wages have only risen to between HK$50 and HK$120.

Some "capitalists" are even very harsh. For example, auto repair shops and appliance factories sign "apprenticeship contracts" for six or seven years at a time, with a monthly salary of 40 yuan. However, they only pay you 20 yuan out of the contract, and only give you the remaining 720 yuan as a completion bonus after you've completed your apprenticeship. Of course, these contracts usually include room and board, otherwise, people would starve to death.

"Interns get 80 yuan a month, this job is pretty good!"

"That's right, but didn't you see? They only recruit men aged 16 to 40. It's physical work."

"Physical work is physical work, but since it includes food and lodging, I think it's pretty good."

For a time, applicants were as numerous as hairs on a cow.

Li Gaofu was one of them. He was quickly hired and then assigned to a shipbreaking yard in Ngau Tau Kok.

Even in winter, dismantling a ship can make you sweat profusely; it's extremely hard work.

Moreover, ship dismantling cannot be done haphazardly; there are technical personnel and managers here to oversee the steps and processes of ship dismantling.

After working for half a day, Li Gaofu couldn't help but complain, "I'm so tired!"

A colleague said, "Otherwise, do you think capitalists' money is so easy to get? But I've heard that you can basically become a full-time employee in a month, and then you can get a salary of 100, which is not less than that of a construction worker."

Li Gaofu's eyes lit up again. He came from the mainland, and it had only been a year.

With a salary of HK$100, he could endure even more intense work, let alone this level of exertion.

"dinner time"

As someone shouted, the shipbreaking yard workers disembarked to get their meals. "It smells so good!"

"There's meat, and quite a lot of it! This is such a great treat!"

"Could it be that they're only giving us such good treatment because it's the first day?"

At this moment, a manager loudly announced, "Gentlemen, here is the headquarters phone number for Rongchang Heavy Industry. If you are not satisfied with the food, you can report it. The person answering the phone is not from Rongchang Shipyard, but from a higher-level company. In short, our meals must include meat every day, and we must make sure everyone is well-fed."

Everyone was stunned; such a thing was possible, and they immediately cheered.

Li Gaofu's eyes lit up, and he muttered, "Back in the mainland, we only get to eat meat a few times a year. Even if it kills me, I'll work here!"

Little did he know that an even greater era of famine had already begun.
Qiao Guanchang inspected the Ngau Tau Kok shipbreaking yard, checked the lunch service, and only dared to leave after confirming that there were no problems.

An incident occurred at the Yangtze River Industrial Group that the management team never forgot. One branch company was caught red-handed by the boss for its terrible food. The boss didn't say anything at the time, but immediately ordered an investigation. It turned out that the food standards were one issue, but embezzlement was also a problem. The boss was furious—the entire management team was demoted, even the general manager was demoted three levels, some directly responsible managers were reduced to workers, and those who embezzled were sent to prison. This was a factory with hundreds of employees!

From then on, the management of Cheung Kong Industrial Group understood that while the salaries of the group's workers might be on par with those in Hong Kong, their benefits were far superior—including things like holiday bonuses, 13th or 14th month salaries, and meal allowances.

Their boss, unlike other bosses in Hong Kong, practices 'people-oriented' management.

Li Gaofu ate heartily, feeling quite pleased with himself. He was even thinking, "I need to save up some money here so I can get married!"

When people are well-fed and clothed, they start to crave more!

At a meeting of the Yangtze River Industrial Group.

Chen Guangliang glanced at the financial report and couldn't help but say, "Last year's profit exceeded HK$5000 million. Isn't that a bit too high?"

This is the truth; he genuinely felt the profits were too high!

The group's senior management and the general managers of its subsidiaries also know the boss's style and know that this is not hypocrisy.

Guo Deming, the group's deputy general manager, quickly said, "It's because of our large size. Last year (1958), Hong Kong's total output value was HK$65.52 billion, while our Cheung Kong Industrial Group's output value reached HK$5.8 million, accounting for nearly 9%. In terms of profit margin, Xinfeng Textile Group took the lead in the garment industry, coupled with the level of textile technology, so it's normal for the profit margin to be high. In terms of plastic flowers, there is still a profit margin of over 20% in labor and staff expenses, and we are also at the forefront in Hong Kong."

Simply put, the profit margin created by Yangtze River Industrial Group, thanks to its advanced technology and its focus on products with higher profit margins, is still very considerable, even with higher employee benefits.

In the textile industry, the lowest profit margin is undoubtedly in 'textiles', while 'garments' have higher added value, and 'brands' have the highest. Xinfeng Textile's textile technology is already ahead of other factories in Hong Kong, and in the garment sector, it was the first to open up the European and American markets, eventually even entering the branded apparel sector (Lacoste).

The same applies to other industries; they are all better than their peers!

It's fair to say that if Chen Guangliang were more of a 'capitalist,' his annual profits could increase by more than 20%.

Chen Guangliang nodded in satisfaction and said, "Science and technology change productivity, and technology changes economic efficiency. What we have been doing has fully verified these facts. We invented plastic flowers, we introduced wigs, we led the toy industry to compete with Japan, and we contributed to the development of Hong Kong's textile and garment industry. Therefore, Cheung Kong Industrial Group must continue to maintain its technological, visionary, and product advantages. As for the industries that are dragging us down, we should make adjustments."

Everyone applauded.

Subsequently, the general managers of each group reported on the situation of the companies they were responsible for and the changes that had been made.

For example, Su Dongsheng stated, "Huatai Plastics Factory's business is divided into plastic flowers and toys. Currently, plastic flower factories are springing up everywhere in Hong Kong. Starting last year, we outsourced some processes to residential homes (women take the production home), optimizing our production line. Next, in addition to further refining this production process, we also plan to develop 'agency contracts.' That is, we don't need to expand our production line; for orders that can't be fulfilled in time, we'll find small and medium-sized plastic flower factories to manufacture them."

Chen Guangliang agreed, saying, "This OEM/ODM contract is feasible. The global plastic flower industry can only expand Hong Kong's output value to a maximum of 6 million, and it has already exceeded 2 million last year. It is expected to reach a saturation point in 1962. Under such circumstances, it is very appropriate for us to adopt the OEM model without expanding our production lines."

From Chen Guangliang's words, everyone understood that plastic flowers, unlike textiles and clothing, are not an industry with a long development cycle and unlimited prospects; rather, they are an industry that will reach saturation in less than ten years, and may even be gradually abandoned.

Therefore, Su Dongsheng's proposed solution is clearly very suitable.

In fact, this is similar to the 'temporary workers' of later generations, only more euphemistic. Huatai Plastic Flowers' 'OEM factories' exploit workers, since Huatai Plastic Flowers' labor costs are the highest in the industry.

Su Dongsheng then continued, "Regarding Huatai Toys, we are no longer satisfied with OEM production. We have established a Hong Kong toy brand called 'Kids King,' which includes Rubik's Cubes and building blocks, and these are currently our main products under development."

Chen Guangliang nodded.

Later, he will meet with Su Dongsheng alone to prepare the 'Hello Kitty' plan.

'Hello Kitty' is a British-origin cat comic, and it is not difficult to draw. Although Chen Guangliang cannot draw it completely, if the artist draws many versions, he can choose the one that is closest to the original.

On the other hand, marketing Hello Kitty is crucial and requires a grassroots approach, that is, casting a wide net and licensing anything. When Hello Kitty becomes loved all over the world, that will be the time for the "King of Kids" to reap a great harvest.

The general managers of other industries reported on their work, and Chen Guangliang provided very accurate comments and plans for each of them.

The general managers also benefited greatly, and they always admired their bosses' vision, which is the fundamental reason for the development of all enterprises.

In late January, Chen Guangliang was at his estate in the suburbs of London with Audrey Hepburn, who had just given birth to their daughter, Chen Daiyi.

By this time, Audrey Hepburn had given birth to two sons, Chen Wenou and Chen Wenxi, and a daughter, Chen Daiyi, for Chen Guangliang.

Looking at the children of the three wives, the eldest son's wife has four sons and one daughter, the youngest of whom is less than 7 years old; the second son's wife has three sons and one daughter, the second daughter of whom is 21 years old this year.

With three wives, having a daughter is indeed a difficult thing, which is probably due to genetic factors.

Audrey Hepburn gave birth to a daughter, which made Chen Guangliang very happy, and she herself was also very happy. The two of them wanted a daughter, otherwise they would not have considered having a third child at all.

At night, after her youngest daughter fell asleep, Audrey Hepburn lay in Chen Guangliang's arms, enjoying the safest moment.

Chen Guangliang stroked her short hair and said, "When Wen Ou and the others grow up, I will arrange the best careers for them and build a large European family."

Audrey Hepburn gently stroked Chen Guangliang's chest with her delicate hand, her face filled with admiration, and said, "You're always so confident!"

Chen Guangliang smiled and said, "Of course, because I already have some ideas in mind. Britain has a lot of good assets. We can use Britain as a base to develop in Europe and then expand globally."

When Chen Wen-ou graduated from university in 1974, Chen Guang-liang could then provide substantial support to his children.

This also meant that Chen Guangliang would not provide Audrey with any further support before 1974, given her considerable wealth. Besides investments in securities and real estate in the UK, her assets included the Monaco beach resort, Audrey toys, and BMW shares.

The Monaco beach resort, for example, generates millions of US dollars in returns every year, making it a true cash cow.

Ultimately, Chen Guangliang can only provide real support once his children start working.

For example, Chen Wenjin, the eldest son of the second wife, is currently entering the shopping mall industry in the United States. If his current project succeeds, it will demonstrate that his abilities have been recognized; then, Chen Wenjin will be able to receive strong support to develop commercial real estate. (End of this chapter)