A century-old wealthy family that rose from Shanghai

Kowloon, the old Taoist priest.

Chen Wenjie, accompanied by his uncle Yan Zuhe, arrived at a construction site and said, "Uncle, this site is over 60,000 square feet and can be used to build four residential buildings, approximately 800 residential units. The owner is currently asking for HK$13 million. How about we two families combine our assets, each holding 50% of the shares?"

Yan Zuhe said somewhat embarrassedly, "Wenjie, I've only managed to raise HK$600 million, HK$500 million of which was borrowed from your mother. How can I possibly undertake such a large project? The total investment for this project will easily exceed HK$2000 million!"

Currently, the ratio of land cost to construction cost in Hong Kong's real estate market is approximately 2:1. Of course, this is just a rough estimate.

Chen Wenjie laughed and said, "Uncle, you don't know this, but we don't need to pay the owner's money all at once; we can agree to pay it off in one year. By then, the land will have already been sold, so there will naturally be no problem with insufficient funds."

Yan Zuhe was naturally aware of this practice. Before 1957, some companies only needed to pay one-tenth of the land cost, and then the real estate companies quickly recouped their funds by selling pre-sale apartments.

However, after 1957, the Hong Kong government first introduced policies to restrict the sale of properties off-plan, and then law firms and banks also began to restrict the disbursement of funds. Of course, after the property market crash, even landowners became cautious in signing sales contracts, and the payment ratio increased significantly.

But Yan Zuhe also understood that no restrictions existed for a behemoth like Cheung Kong Holdings; Cheung Kong was not only powerful, but also backed by Ping An Bank and the Chen family conglomerate, and had an excellent reputation.

"Good, with Cheung Kong Holdings as my backer, those problems naturally don't exist. You've helped me so much this time!"

Chen Wenjie said, "Uncle, you and Mommy are siblings from the same mother, so it's natural that she can't bear to see you like this. She just hopes that after this 'mistake,' you can be more cautious and steady."

He first attributed the credit to his mother, and then pointed out the reason for his uncle's failure, albeit in a very tactful way.

"You're right, I was too rash!"

Chen Wenjie said, "My father often said that as long as the debt ratio does not exceed 30%, you can be invincible. Whether it is investing in real estate or stocks, from a long-term perspective, he will make money, and he will definitely be able to outpace inflation."

Yan Zuhe sighed and said, "Your father's words were actually meant for you, but of course they are also of great benefit to us."

In fact, Yan's misfortune turned into a blessing in disguise; his assets not only did not decline, but actually increased significantly.

On the other hand, without the Chen Guangliang family's help last time, the Yan family would not have gone bankrupt; they would have only suffered asset losses.

Chen Wenjie nodded; he naturally understood this.

After the two parties finalized the agreement, they quickly purchased the land and prepared to begin development.

Hong Kong currently stipulates that pre-sale apartments can only be sold 9 months before the new building is handed over; or, the company's net assets must reach a certain amount.

Even so, citizens wouldn't believe a site where no buildings have even started construction. So real estate developers usually start construction to a certain extent first, and then emphasize the progress and delivery date when they go on sale.

Time flies, and another year has passed (1960).

在1959年，香港的本地生产总值就突破75亿港币，人均2420元。（前世1964年人均才2538元，当时人口已经350万）
More importantly, the annual GDP growth rate is now over HK$8 million, with a growth rate of around 10%.

Entering the 1960s, Hong Kong's economy became even more prosperous, with GDP growth expected to remain at 10%.

After New Year's Day, Chen Guangliang naturally prioritized inspecting the various companies of the Cheung Kong Industrial Group to understand the situation of Hong Kong's industry and predict its development trend.

For example, in 1958, the United States and Hong Kong imposed trade restrictions on cotton textiles. In order to make the most of the quotas and increase the rate of return, Hong Kong's garment industry improved its production technology and quality, and increased the added value of its products. Hong Kong's exports of finished garments to the United States increased rapidly, and the garment industry developed rapidly, becoming one of the world's most well-known garment exporters.

Under these circumstances, Sin Fung Textile had already made adjustments, expanding the proportion of its garment industry to surpass that of the textile industry; the same was true for the whole of Hong Kong, where garment exports had surpassed those of the textile industry.

This means that products exported from Hong Kong have higher added value and higher profits.

"Boss, the mid-to-high-end garment production lines we've established not only produce for our own Lacoste brand, but also for clothing brands in the US and Australia," Lin Jianyun, general manager of Xinfeng Textile, introduced confidently.

By the late 1950s, the output value of garments at Sin Fung Textiles had already surpassed that of textiles, making it one of the earliest textile companies in Hong Kong to undergo such a transformation.

Of course, the fact that garment manufacturing has surpassed textile manufacturing does not mean that textile manufacturing has declined. After all, textiles and garment manufacturing employ nearly 40% of Hong Kong's workers.

Chen Guangliang picked up a piece of clothing that had been manufactured for the company, examined it carefully, and then said, "Hmm, the product is not bad!"

He then changed the subject, saying, "You must pay close attention to the quota issue. At the very least, the Hong Kong government must ensure fairness. On this point, you cannot limit your vision to the internal workings of Sin Fung Textile, but must take a long-term perspective."

Starting last year, under pressure from the London government, the Hong Kong government also proactively restricted Hong Kong products from exporting to the Common Market. Quotas were a key factor.

Lin Jianyun nodded and said, "Our initial idea is that exporters and manufacturers each hold half of the quota, but we still need to negotiate with our peers and the Hong Kong government for the specifics."

"Well, in short, this matter is very important."

"Ok"

Currently, Tong Runfu serves only as an advisor to the Xinfeng Textile Group, a member of the Executive Council of the Hong Kong government, and the chairman of the Hong Kong Textile Association. His influence in Hong Kong is enormous.

Lin Jianyun rose from general manager of the garment business to general manager of the entire Xinfeng Textile Group, which naturally demonstrates his excellent abilities. More importantly, he is originally from Guangdong Province and joined Xinfeng Textile Group as early as 1937.

Regarding the quota issue, Chen Guangliang did not want Lin Jianyun to primarily consider Xinfeng Textile Group, but rather to consider it from the perspective of the entire industry; of course, Xinfeng Textile would also receive its due share.

Subsequently, Chen Guangliang also inspected the production line of 'Crocodile Garments'.

Currently, Lacoste Garments has opened five stores in Hong Kong, three in Singapore, three in Taiwan, and one in Kuala Lumpur, for a total of 12 stores. Its growth rate is rapid, and its brand effect has been very successful.

Afterwards, Lin Jianyun, accompanied by two members of management, went to Chen Guangliang's office.

"Mr. Chen"

"Okay, sit down, let's have a meeting!"

The two managers were a little uneasy because they rarely had the opportunity to see the boss, and today they were having a meeting in the boss's office. They wondered what the meeting was about.

Without wasting any words, Chen Guangliang said directly, "I asked General Manager Lin to introduce two managers with rich overseas experience who are both bold and meticulous. It's because I need to send a team to Africa, and I don't know if you would be willing to go."

"Africa?"

"South Africa?"

Hsin Feng Textile does indeed have export business in South Africa.

"It's Nigeria, also a British colony, but it gained a high degree of autonomy in 1954 and is expected to gain independence this year, though it should still be a Commonwealth country. It's a very large country. If the British leave, this country will have a lot of foreign exchange, but there will definitely be a severe shortage of goods. Take a look at the specific information. If you're willing to go, reply to me; if you're not willing, that's fine too, I'll send someone else."

After all, they all have families to support, so going to work in Africa definitely requires careful consideration.

The two of them started looking at the information, and they became engrossed in it. Although Nigeria is an African country, its population is larger than that of the United Kingdom, exceeding 4000 million.

If the British leave, the country will be left with a 'commercial vacuum', with a large amount of foreign exchange left behind but products being very scarce.

Needless to say, developing the textile industry here would be very advantageous.

Of course, there are also disadvantages, namely an unstable political environment and less-than-ideal living conditions.

Lin Jianyun tempted them, saying, "You're just mid-level managers, and promotions are difficult in Hong Kong. If you're willing to lead a team to Nigeria, you can enjoy the benefits of senior management. At the same time, our business in Nigeria will provide the team with a certain performance bonus." Upon hearing this, Wang Zhihe and Lü Chao, who had been summoned, could no longer resist the temptation and immediately agreed to go.

Chen Guangliang nodded and said, "This matter is not urgent. General Manager Lin will personally lead a team to conduct an inspection later, and the final investment decision may have to wait for the inspection results."

This is Hsin Feng Textile's first overseas factory, so naturally they want to proceed cautiously.

Of course, Hsin Feng Textile will consider building factories overseas in the future, eventually forming a global textile group.

Meanwhile, in Japan, Master Kong Ramen is engaged in fierce competition with local Japanese ramen brands.

Master Kong instant noodles from Hong Kong have been in the Japanese market for two years. For the first six months or so, there were no competitors, and it quickly captured a large market share and became a best-selling product.

More than six months later, Momofuku Ando of Japan was the first to create and start selling ramen under the brand name "Nissin".

Of course, Master Kong did not miss the opportunity and immediately filed a lawsuit in a Japanese court on the grounds of patent infringement.

The news spread like wildfire, and six months later, Master Kong offered a new solution—any brand that produces instant noodles must pay Master Kong a patent fee of US$5.

This move was also a last resort. After Nissin, Japanese instant noodle manufacturers sprang up one after another, and people criticized Master Kong for engaging in monopoly.

If the situation dragged on, it would be detrimental to the Master Kong brand in the Japanese market, so Master Kong instead lowered its patent fees, charging each company a symbolic patent fee of US$5.

Even so, they have already collected millions of dollars in patent fees.

In the following year, Master Kong changed its strategy and launched a price war, igniting a major instant noodle war in Japan.

After two years, the Hong Kong brand 'Master Kong' has not only established a firm foothold in Japan, but has also captured the largest market share.

Vitasoy Group President Chen Zhixing and Master Kong Instant Noodles President Ma Jiabo are holding a meeting in an office building in Ginza.

Half of the management and technical staff present were Japanese, because Master Kong has set its main market in Japan and has invested in an instant noodle factory there.

Chen Zhixing began, "In order to win this ramen war, this Ginza building we are in will be renamed Master Kong Building and will become the Japanese headquarters of Master Kong Ramen."

Everyone was taken aback. The Hong Kong management knew that the property belonged to Cheung Kong Holdings and was the property of the parent company.

Marco Polo happily said, "This is the best brand! Other ramen brands in Japan are just small players, while our Master Kong brand firmly holds the number one position in Japan."

Kenjiro Yasuda, the Japanese regional general manager, immediately said, "Although Master Kong is currently ranked first in sales, the pack tactics in the local market are still making it very difficult for us. Moreover, the low-price strategy has been in place for a year, during which we have relied entirely on patent fees to support our profits in Japan. This is not a long-term solution."

He knew, of course, that the group was very powerful; otherwise, it wouldn't have built a large food factory in Japan in the first place.

Margaret nodded in agreement, but then changed the subject, saying, "Of course we can't just sit idly by. The group has decided to develop a new product—tonkotsu ramen (pork bone ramen), which is almost ready. It will be produced in Japan soon. At that time, we will have two flavors, giving customers a better choice."

One of the management teams was delighted, as they hadn't expected the group company to have a new product so quickly; it was a very good sign.

At the same time, Chen Zhixing also said, "Not only that, the group has decided to continue to support your low-price strategy until you stabilize your market share. Furthermore, we can also package five bags of Master Kong ramen into one large bag and give away a porcelain bowl to further capture the market."

This is a huge investment!

The profit margin was already negligible, and now they're even giving away bowls – it's clearly a way to cut off Japanese brands' chances of survival.

In fact, this strategy was personally overseen by Chen Guangliang. In his previous life, Japanese instant noodles defeated Hong Kong's local brand "Doll Noodles" in the same way, forcing the owner of Doll Noodles to sell the company to Nissin Ramen, and ultimately Japanese instant noodles dominated the Hong Kong market.

Of course, Master Kong's current low-price marketing strategy is mainly aimed at consolidating and expanding its position in the Japanese market, rather than monopolizing it. After all, that's impossible, and large Japanese conglomerates wouldn't stand by and watch.

A series of major marketing initiatives are about to be launched, including naming rights to the Ginza Building, continued low-price strategy, free plastic bowls, and upcoming new products.

But that wasn't the end. Chen Zhixing continued, "Japanese people love ramen, and the group intends for Master Kong to establish a fast-food brand—Ajisen Ramen. The specific model will be similar to American fast-food chains, but Ajisen Ramen will mainly offer ramen, including various flavors."

Margaret was also informed and immediately said, "Yes, we already have a design proposal for a fast food company, and we will assemble a team later."

This design, coming from the boss, is naturally very valuable and is bound to succeed.

And that was indeed the case. Even American fast-food companies were, in Chen Guangliang's eyes, nothing more than children. No one could match his understanding of chain fast-food brands.

Nissin Ramen.

Momofuku Ando was in his office, anxiously looking at some market reports.

About a year and a half ago, he sold his property and took out a loan to enter the ramen industry. But what followed was the 'pressure' from Master Kong. The lawsuit almost caused Nissin's brand image to plummet and earned it the reputation of being a 'knock-off'.

If it weren't for the pressure he put on Master Kong by joining forces with other Japanese brands, Master Kong wouldn't have compromised and only accepted a patent fee of US$50,000 (to one company).

But then came Master Kong's formidable strength, which led to a low-price strategy that suppressed various Japanese brands. Some brands with strong backing fared relatively well, but Nissin, owned by Momofuku Ando, ​​was in trouble.

In this life, Momofuku Ando's Nisshin wasn't the first to try something new, so naturally, it didn't have any advantages.

"President Ando, ​​Mr. Ma Jiabo, the president of Master Kong, has arrived!"

Please invite us.

A moment later, Marco Polo walked in and said with a smile, "President Ando, ​​how have you been!"

When former enemies meet again, they can naturally control their emotions.

Momofuku Ando said with a smile, "Not bad, after all, Nissin is doing very well!"

Marco Polo sat on the sofa and said, "No, Nissin doesn't have the support of a large conglomerate. It's just one of many brands in Japan and doesn't have any particular advantages. Of course, I won't say too much. The reason I came to Nissin is to acquire your brand, President Ando."

Momofuku Ando suddenly stood up and said, "Impossible! I will not sell Nissin."

Despite the difficulties in running the business, we never considered selling it.

Ma Jiabo laughed and said, "President Ando, ​​don't worry. You may not know, but we have an even bigger marketing campaign coming up. When the war starts, Nissin will have no chance to fight back. Instead of that, President Ando, ​​we'd rather sell you at a good price. In addition, we are willing to invite you to serve as the global vice president of Master Kong and work with me."

Momofuku Ando's heart skipped a beat. He had done his research and found that Master Kong was just a brand of the Hong Kong Vitasoy Group, which in turn was a subsidiary of Cheung Kong Holdings. More importantly, Cheung Kong Holdings was just one of the conglomerates of the "world's shipping magnate."

This is equivalent to a Japanese zaibatsu, or even larger.

If they implement an even more aggressive low-price strategy, he really won't be able to withstand it!

Seeing that Momofuku Ando hesitated, Marco Polo said, "We'll give you a price that will definitely satisfy you, after all, you are an excellent entrepreneur."

"I'll think about it some more."

"Okay." (End of Chapter)