A century-old wealthy family that rose from Shanghai

In mid-January, the Chen family received good news – An Shuhui, the wife of Chen Wenming, the second son of the eldest son, gave birth to a son.

However, Chen Wenming didn't have time to be happy. After spending ten days with the family, which coincided with the Spring Festival, he hurriedly went to London.

"Brother Wenbo, what brings you here?"

Chen Wenming was picked up at the airport by his cousin, Chen Wenbo, who is a few months younger than him.

Today, Chen Wenbo is mainly responsible for the administrative work of Global Shipping, while Chen Wenming is responsible for the business operations.

"This isn't a family vacation in London. I heard you were coming, so I volunteered to pick you up. Stay at my place tonight!"

"it is good"

Chen Guangcong had long since become a British citizen, and his son Chen Wenbo naturally also holds British and Hong Kong citizenship, so they also have a home in the UK.

The car drove into a villa in London.

"Second Uncle, Second Aunt"

Chen Guangcong's entire family was present. His only son, Chen Wenbo, was already married and had a grandson. Then there were his two daughters, the eldest and the second daughter, who lived in the UK.

Their main business is global shipping, in which they hold a 15% stake.

Chan Kwong-chung traveled around the world for many years, so he eventually settled his family in London and returned to Hong Kong regularly.

"Knowing you were coming, we've prepared a cocktail party for you. It's tomorrow night, so you can take a day off to rest."

"Thank you very much, Uncle and Aunt."

"We're all family, no need to be so polite."

Upon entering the villa, Chen Wenming didn't treat himself as an outsider and enjoyed a harmonious time with his second uncle's family.

During dinner, Chen Guangcong said, "Shell Oil Company must have heard that we are willing to lease the oil tanker long-term because they are very interested in holding a banquet in London this time."

Chen Wenming nodded and replied, "Currently, of our 12 100,000-ton oil tankers, the first 10 have been leased out for long-term contracts, and the remaining two are about to be launched, which is just right."

Chen Guangcong said with a smile, "Did my elder brother give you a secret decree?"

The eldest brother, being incredibly insightful, would naturally pay attention to the leasing arrangements for the two oil tankers.

Chen Wenming nodded, about to speak.

Chen Guangcong spoke first: "No need to say more, I already know that you will be leading this negotiation."

"Yes, Second Uncle."

The first 10 oil tankers, each 10 tons, were basically signed for five years, roughly from 1962 to 1966.

This year, the lease term will probably be one year shorter, or maybe three years.

After all.

Worldwide Shipping has a very good reputation globally, offers competitive prices, and has excellent vessels.

Taking all three factors into account, the competition surpasses that of Greek shipowners and even surpasses that of Hong Kong's fleet, so business is naturally not a problem.

The next night.

Chen Guangcong, accompanied by his nephew Chen Wenming, attended a banquet. The attendees included European nobles, representatives from oil companies, and transportation companies, making it a very high-profile event.

On many occasions, Chen Guangliang would delegate his younger brother to represent the Global Group in shipping-related activities. Chen Guangcong, having worked in the shipping industry for nearly thirty years, coupled with his British citizenship, was enough to earn the recognition of European nobility.

Now, as the heir to the 'Global Group', Chen Wenming has begun to attend some events around the world, though he still needs his second uncle to introduce him or bring him along.

Shell Chairman Marcus, holding a wine glass, said to Chen Wenming, "Young man, are you interested in becoming a British citizen? That way, you can gain better respect in the world, just like your uncle."

Clearly, this is a problem of arrogance.

Although Chen Wenming is only 28 years old, this is not his first time attending such an event. He said humorously, "Sir Marcus's suggestion is very good. However, Hong Kong is currently a Commonwealth territory, so I don't feel any inconvenience for the time being."

Seeing this, Marcus smiled and said, "You're quite good. I've heard that the world's shipping magnates have many tiger-like sons, and now I see that the rumors are true."

"Thank you, but we are still far from being as good as Father!"

At the reception that evening, Chen Guangcong only briefly introduced his nephew before letting him roam freely. He soon discovered that his nephew was completely unrestrained in this setting, moving effortlessly among the nobles and business tycoons.

He couldn't help but think that although his eldest brother seemed to value Wenbo the most, he actually had more confidence in his own son, Wenming, and had been letting him grow up in a "hands-off" manner. Of course, the two brothers, one working outside and the other inside, seemed just right.

The next day.

As the chief negotiator, Chen Wenming gave Global Shipping the upper hand.

Two 103,000-ton oil tankers were contracted for a four-year period, and Shell Oil Company readily signed the agreement because there was no more suitable alternative.

Currently, oil costs only $2 to $3 per ton, while the transportation cost is more than twice that of oil, meaning that transportation is more important than oil.

This is also why the US business and political circles reacted so strongly when Chen Guangliang and Saudi Arabia reached the 'Jeddah Agreement' nine years ago.

In an office building in Central, there is a sign hanging at the entrance that reads "Asia Shipping".

At this moment, Bao Yugang was in his office, reviewing information about Asian shipping.

"Bao Sheng, you called for me!"

The subordinate walked in and asked cautiously. He knew that although Bao Yugang always had a smile on his face, he was actually a very formidable boss, and he could easily be criticized if he wasn't careful.

Bao Yu looked up, a smile on his face, and said, "Hmm. How have the three cargo ships we bought from Global Shipping last year been performing lately?"

He actually had a good idea of ​​what was going on, but he still asked his subordinates, as this would help him get more comprehensive information.

The subordinate nodded and said, "No problem, it's a very good deal. Before selling it to us, Global Shipping did a great job maintaining these three ships. They've been operating well for the past six months. Based on the current condition, they can operate for another five years without any problems."

Bao Yugang sighed, "Always buying secondhand ships isn't a solution; we need to find a way to build new ones!" In this life, although Bao Yugang also entered the shipping industry in 1955 and secured a high-priced long-term contract when the Suez Canal closed in 1956, he later discovered that Japanese shipping companies preferred Universal Shipping, which had signed numerous long-term contracts with many Japanese shipping companies. Furthermore, HSBC had already partnered with Universal Group and entered the shipping industry, so its support for Bao Yugang was naturally limited.

Therefore, at this time, Bao Yugang was merely a shipowner with 10 second-hand cargo ships, not even ranking among the top five in Hong Kong.

More importantly, Bao Yugang has no future, because the influence of the Global Group is already deeply rooted in both Japan and Europe and America.

The subordinate said, "It's just building a new ship. A 7500-ton cargo ship from Japan costs $120 million. That's quite expensive for us! In fact, a little over a year ago, a 7500-ton cargo ship only cost $100 million. We missed the best time to build ships back then."

There's nothing we can do; if you're late, you'll be late for everything.

In his previous life, Bao Yugang built a new ship in 1961 when the shipping industry was undervalued and shipbuilding prices were low.

Now that shipping has been busy for over a year, and Japanese shipyards have a full order book, prices will naturally rise.

Bao Yugang stood up and paced back and forth in his office. After a while, he said firmly, "We must build a new ship, otherwise our reputation will never be able to improve. Although $120 million is expensive, the annual rent is $85 now. If we deduct interest, labor, fuel, wear and tear, etc., we can still make a profit of $20. We can break even in six years. This business is worth doing."

As they were discussing this, a subordinate rushed in and reported, "Mr. Bao, Lloyd's of London has suddenly announced that it will significantly increase insurance premiums for cargo transported on old ships. It seems they're targeting Japan."

Bao Yugang's eyes widened, and he said angrily, "Damn it! When two countries are at war, we suffer the most!"

It turns out that although Japan's shipbuilding industry started developing in 1955, it is still a relatively large country. In addition, its economy is developing rapidly and it mainly relies on imports for resources. Therefore, Japan's transportation needs are second only to the United States. However, Japan's transportation mainly relies on second-hand ships, which occupy the dominant position.

Lloyd's Register is a globally renowned insurance company, and many shipping insurance policies in the Far East are paid through them. The significant increase in insurance premiums for cargo transported on secondhand ships will inevitably impact shipowners of these vessels.

"It seems we have to find a way to build new ships. But I heard that last year alone, Global Shipping sold more than a dozen second-hand ships. It seems they predicted this all along!"

Upon hearing this, Bao Yugang shuddered, and a sense of powerlessness washed over him.

Not long after entering the industry, he made a bold statement—that he would build a large shipping company like World Wing. After careful research, he discovered that World Wing didn't like excessive borrowing, and he felt this was a mistake.

Little did he know that he would later discover that Global Shipping didn't dislike loans; rather, they had substantial financial resources and could obtain loans directly from the shipbuilding country for new ships, without needing to go through Hong Kong banks.

Now, Bao Yugang has realized that while all of their ship owners, including Dong Yunhao, Zhao Congyan, Cao Wenjin, Yang Yifan (Yang Xiaohu), and others, are buying a large number of second-hand ships, Global Shipping is already planning to replace a large number of second-hand ships.

His foresight was too strong; how could he possibly succeed!

Lloyd's of London's move to significantly increase insurance premiums for second-hand ships has had a huge impact on the shipping industry throughout the Far East.

Shortly afterward, the Japanese government also urgently introduced policies and formulated a series of schemes to encourage shipbuilding—anyone building a new ship could borrow 80% of the cost from the Bank of Japan at an annual interest rate of 5%, with the remaining 20% ​​to be paid in installments.

Upon hearing this news, shipowners with resources naturally began preparing to build new ships, since the profit margins on secondhand ships are currently very thin.

Hong Kong shipping companies that charter vessels to customers, whether for short or long term, are responsible for their own fuel, labor, and insurance costs. Therefore, the increase in insurance premiums is actually a blow to second-hand ship owners.

Last year, Universal Group sold off a large number of second-hand ships that it had acquired at low prices between 1959 and 1961. At that time, the prices were extremely low, and many of them were bought at scrap ship prices, such as $6 for a seven or eight thousand ton cargo ship.

Later, the Global Group repaired and maintained a number of second-hand ships that were in relatively good condition and put them into operation.

By 1962, the shipping industry had emerged from its downturn, and the price of secondhand ships had risen. Worldwide Shipping sold more than a dozen cargo ships for over $30 each, making a fortune in the process.

The money earned by Global Shipping was naturally used to order new ships, creating a virtuous cycle.

After this operation, Worldwide Shipping earned a profit of approximately US$200 million.

"Big Brother"

"Little Tiger's here, have a seat."

Yang Xiaohu, Yang Yifan's cousin, came to Huanqiu Group to find Chen Guangliang.

Yang Xiaohu sat down and said with a smile, "I've had my name changed for a long time, and only my older brother, brother-in-law, father, and mother call me Xiaohu, but I feel very close to them."

Chen Guangliang also came to the sofa, crossed his legs, and said casually, "Now you're a tycoon in Hong Kong, why are you still reminiscing about the past!"

"It's good now, but it was good before too."

Chen Guangliang nodded. With his guidance and support, his cousin had had a relatively smooth journey.

Yang Xiaohu broke away from the government in the late 1940s, initially engaging in trade, and later making his fortune during the Korean War (shipping and smuggling). Of course, Yang Xiaohu was subsequently blacklisted by the US government, and he could only develop his business in Hong Kong and Southeast Asia until he was removed from the blacklist in the 1960s.

Even so, Yang Xiaohu's current net worth includes: a real estate company with two properties in Sheung Wan; a shipping group with registered vessels in Hong Kong and Southeast Asia; and a trading company mainly engaged in trade between Hong Kong and Southeast Asia.

"If you've come to the company to see me, just say so!"

Chen Guangcong was also Yang Xiaohu's brother-in-law, so he didn't usually need to come to Chen Guangliang's office for ordinary matters.

"It's nothing much, I just wanted to ask for your advice, brother. I'm thinking of rebuilding those two properties I own in Sheung Wan."

After thinking for a moment, Chen Guangliang said, "Build the Yongye Street building first. After it's built and leased out, we can consider building the next one. Build them all as top-notch office buildings for the Yang family's family legacy."

Yang Xiaohu felt his career prospects brighten and said, "I'll listen to you, brother. I'll have Wenjie introduce me to someone from Poly Construction later!"

"Um"

Yang Xiaohu wanted a 'future', so a few words from Chen Guangliang were enough to give him confidence.

While Yang Xiaohu's two properties are located in Sheung Wan, they are still close to Central, so there will be no shortage of tenants for the office buildings they construct. Although their overall value is not as high as the Yan family's two properties, they will still be worth at least several billion dollars in assets combined.

Later, Chen Guangliang said, "With Lloyd's raising the insurance premium this time, your second-hand ships must have suffered considerable damage. Have you considered building new ships?"

Yang Xiaohu nodded and said, "We can't always rely on secondhand ships. Of course, secondhand ships are enough for Southeast Asia, but now that I've been removed from the US blacklist, I'm thinking of expanding my shipping business. So this time, we're also planning to build new ships!"

"Do you have enough funds?"

Yang Xiaohu said, "A loan will solve it. Of course, I always keep my brother's words in mind and will not let the debt ratio exceed 40%."

"it is good"

After chatting for a while, Yang Xiaohu left feeling satisfied.

In his eyes, his elder brother was a legend in the business world; even a few words exchanged between them could be of immense benefit to him. (End of Chapter)