A century-old wealthy family that rose from Shanghai

The "development rights above Central Station," namely the "Midea Tower," was acquired by Cheung Kong Industrial Group in May 1978 for over HK$600 million. In addition, Cheung Kong Industrial Group also holds the "development rights above Admiralty Station," namely the Admiralty Centre.

The headquarters of Cheung Kong Industrial Group moved from Lane Crawford Building on Queen Road Central to Midea Building in the 1980s, where it has been used as its administrative headquarters.

The Cheung Kong Industrial Group comprises four major groups: Sun Fung Textile Group, Wing Cheong Heavy Machinery Group, Wah Tai Group, and Midea Group. Each group is a super-large enterprise employing tens of thousands of people, leading the development of industry and technology in Hong Kong.

"Mr. Chen, this is information about the overseas development of Uniqlo and Lacoste. I have had it compiled into complete data for you to review!"

Wu Weikang, CEO of Xinfeng Textile Group, walked into the chairman's office and handed the documents to Chen Wenkai.

Chen Wenkai took the documents but didn't rush to look them up; he was already familiar with the general developments.

Over the years, under his father's guidance and arrangements, the Lacoste and Uniqlo brands have attached great importance to overseas development, especially the Japanese market.

Today, both brands have hundreds of stores overseas and have also purchased several local shops and properties.

Lacoste is a very popular brand in Taiwan, Japan, and Singapore because, like the Bauhinia flower, it is a symbol of Hong Kong.

Uniqlo's success overseas stems from its "business model," and its ability to establish a foothold in the Japanese market is also partly due to the invention of fleece. Because it possessed the technology and patents for fleece, it sold millions of pieces in its first year in Japan, and even 200 million pieces in its second year. The current record is 600 million pieces sold in Japan in a single year, instantly establishing Uniqlo's brand recognition. The same trend has occurred in South Korea.

Chen Wenkai said, "The textile industry is now shifting to regions with lower labor costs, and the fact that our Xinfeng Textile Group's textile business now only accounts for 15% already speaks volumes."

As a group that started with textiles, the textile (textile printing and dyeing) business is now in decline, and most of its companies will probably not escape the fate of going bankrupt or failing to transform successfully.

Wu Weikang nodded and said, "Fortunately, the group has already laid out its plans in apparel, branding, and technology, so Xinfeng Textile Group is still maintaining a high growth rate. In addition, we are already in talks with 'FILA brand' to reach a cooperation agreement as soon as possible and enter the sports brand industry."

Hsin Feng Textile Group actually owns more than just Uniqlo and Lacoste, including the luggage brand 'TravelPro', the outdoor sports brand 'Lacoste', and others.

Every brand has a story. For example, TravelPro is the company that invented the rolling suitcase, and the 'Crocodile' outdoor brand is known for the invention of fleece and the invention of the three-layer outdoor gear.

Chen Wenkai said, “We must take the cooperation with FILA seriously. However, there is one more thing you need to do, which is to improve Uniqlo’s supply chain. My idea is to find a small town in Zhenhai District in the mainland and build an integrated region that combines textile printing and dyeing. Of course, after the supply chain system is improved, we can outsource some procedures to third parties. It is very necessary to spend ten years building such a supply chain.”

One of the core reasons why Uniqlo has developed so well is its "good quality at low prices", so the supply chain is very important.

Wu Weikang immediately wrote these down. The reason why Xinfeng Textile Group has stood for more than 50 years and has been on the rise is mainly due to the Chen family's 'foresight'.

"Okay, I'll come up with a detailed supply chain plan as soon as possible and show it to you!"

Chen Wenkai nodded. Choosing to establish the 'Supply Chain Town' project in his hometown of Zhenhai District was naturally a way for the family to support their hometown. Of course, this would also allow Xinfeng Textile Group to reduce costs.

However, the plan for the 'supply chain town' was actually guided by my father, and the Uniqlo brand was also planned by my father, though only in general terms.

As for the cooperation with FILA, it was mainly based on the fact that after signing Jordan, the FILA brand immediately developed rapidly in North America, while it naturally could not take care of Asia; fortunately, Hsin Feng Textile Group has rich experience in apparel operation in Asia, and the two parties can reach a cooperation agreement.

After Wu Weikang left, Chen Wenkai rubbed his temples. Taking control of a large group with hundreds of thousands of employees was not easy. Although he had his father's support, his father also gave him a task—none of the four major groups could fall behind.

Xinfeng Textile Group is vigorously developing its brand.

Rongchang Heavy Industry Machinery Group is also vigorously developing in the fields of 'yacht manufacturing', 'mechanical motors', and 'hardware tools'.

Chen Wenkai picked up a document, which was a research and development project plan for 'lithium batteries used in hardware tools'.

Rongchang Heavy Industry Machinery Group is the world's first company to commercialize lithium batteries. In particular, the selection of the right positive and negative electrode materials almost earned the scientists in the research team a Nobel Prize, or at least a nomination.

Historically, lithium batteries would not have been commercially viable until at least the early 90s, but Rongchang Heavy Industry Group accomplished this nearly ten years ahead of schedule.

Looking at the documents, Chen Wenkai felt that his father was truly great, and his admiration for him was overflowing.

While everyone else is researching the use of lithium batteries in electronic entertainment devices such as portable music players and radios, Rongchang Heavy Industry Machinery Company has already taken the lead in developing lithium batteries for use in tools, including various types of electric drills, hair dryers, and so on.

This step alone is another groundbreaking initiative.

However, Chen Wenkai soon discovered some shortcomings, namely that Rongchang Hardware's technological accumulation in hardware tools was not as good as that of Europe and the United States. But this did not stump him, so Chen Wenkai quickly decided to make up for it by acquisition, which would not only allow him to acquire technology, but also gain access to the European and American markets.

Therefore, he noted in the documents: "Considering the acquisition of relevant companies in the UK or Europe."

Despite the acquisitions, Rongchang still invested heavily in research and development, reflecting his father's philosophy of "revitalizing the port through science and technology."

Midea Building, Midea's gaming and entertainment division.

This is an important department of Midea Group. Its annual profit is equivalent to that of large real estate developers such as Sun Hung Kai Properties and New World Development. It can be said to be the pride of Hong Kong people.

Midea's gaming and entertainment division is actually divided into a hardware division and a software division, with the software division being the 'leader'.

The software department has over 300 R&D personnel, forming the 'cornerstone' of Hong Kong's game software industry.

It is precisely because Midea's gaming and entertainment software division creates astonishing value that this division rightfully occupies a prime location in one of Central's most luxurious office buildings, spanning three floors and approximately 3 square feet. Furthermore, this division has branches in Japan and the United States, and employs nearly one hundred people overseas.

At this moment, in a demonstration room of the game software division in the United States, an arcade machine is placed in the center, and two employees are 'playing the game'.

"I choose 'Dragon,' who comes from China and is skilled in ancient martial arts techniques, including fist and leg techniques!"

"I choose Chun-Li, from Japan, who is skilled in Hadouken-ryu karate!"

As the two staff members introduced the game, a fighting game demonstration on an arcade machine began, and Chen Wenkai and the others who were visiting immediately showed faint smiles.

Intense fighting sounds, accompanied by dazzling special moves and decreasing health bars—a perfect game has been completed.

The game ended, and the audience erupted in applause, their faces beaming with excitement.

"Mr. Chen, what do you think?" Lin Zhengxian, the president of Midea Games Entertainment, asked immediately.

perturbed.

For a long time, the main planner of Midea Games Entertainment has been this high-achieving boss who graduated from a prestigious American university. Games representing classic Hong Kong games, such as *Ping Pong*, *Space Invaders*, *Hong Kong Blocks*, *Pac-Man*, *World of Tanks*, *Contra*, and *Street Fighter*, almost all originated from 'mysterious planning documents'. Lin Zhengxian naturally knew that these games were likely planned by Chen Wenkai, but of course he couldn't tell his subordinates that it was all just company plans.

Whether these products are qualified to be launched on the market is naturally decided by the boss, Chen Wenkai.

Chen Wenkai said casually, "I announce that we can launch it to the market immediately as an arcade game, targeting the world. In addition, the FC console version should also be launched as soon as possible. We can't rest on our laurels from last year's excellent performance."

"Ha ha"

The employees burst into smiles; clearly, the boss was encouraging and motivating them!

Lin Zhengxian then reported: "Okay, the arcade version and the FC version will be launched on the market at the same time. The first half of the year will still be our product boom period."

Last year's Contra sold 100 million copies of the FC version in just 8 months, generating a profit of 1500 million US dollars.

The success of Contra has firmly established Midea Games Entertainment as one of the world's top four game software companies, and even puts it in a prominent position.

Of course, the game that can truly rival Super Mario is Hong Kong Blocks, which is almost exclusively tied to handheld game consoles.

come back to the office.

Chen Wenkai said with a smile, "Your department's bonus this year will probably be the envy of the entire group!"

Lin Zhengxian quickly said, "Thank you, boss! Actually, the classic games of Midea Games Entertainment are all thanks to the company, but the company gives the credit to everyone, so everyone is really grateful to the company."

He has been informed by the group that the highest year-end bonus for Midea Games Entertainment this year is 12 months' salary, which is a reward for some outstanding management and employees; the next highest is six to eight months' salary; and the lowest is three to four months' salary.

Chen Wenkai stated, "The group's decision to award substantial bonuses to Midea Games Entertainment is not solely based on performance. We also want everyone to see that Hong Kong's gaming industry is booming and has a bright future. This will encourage more talent to join us!"

"Yes, boss, you have great foresight!"

Last year, Midea Games Entertainment generated a net profit of US$1.15 million, equivalent to nearly HK$9 million.

To put this into perspective, the combined profits of Sun Hung Kai Properties and New World Development are estimated to be only around 5 to 6 million HKD per year, even though the Hong Kong property market only started to recover last year.

Even so, it's still quite terrifying, and Midea's gaming and entertainment profits are bound to continue to increase this year.

Before leaving, Chen Wenkai said, "Tell everyone, if you're buying a house out of necessity, then make the most of this year's income and don't waste it. Of course, I'm not talking about speculators!"

"Hmm," Lin Zhengxian said with a smile, "Our department is mostly composed of young people, and quite a few of them have housing needs. The company can offer some suggestions, and I believe they will understand."

Chen Wenkai wasn't trying to 'promote his own real estate business'; he was simply acting out of a desire for his employees to 'live and work in peace and contentment'.

Although he doesn't work in real estate, he has heard some opinions about Hong Kong real estate from his father, so having his employees buy houses at this time is definitely a good suggestion.

Oriental Daily News: Midea Games Entertainment has allocated HK$80 million as year-end bonuses, with each employee receiving HK$240,000, equivalent to their entire year's salary. Midea Games Entertainment has over 300 employees in Hong Kong and around 100 overseas. The total of over 400 people sharing this enormous bonus of HK$80 million is truly astonishing.

A news story quickly caused a huge sensation in Hong Kong!

Upon seeing this news, the citizens expressed a range of emotions: envy, shock, and concern.

“My son works for this company. He’s only been there for three years, but he already received a bonus of 10 yuan this year. His usual monthly salary is 1.2 yuan!”

"My goodness! I heard that your son's tuition was almost entirely waived when he studied at Hong Kong Polytechnic University, right?"

"Yes, but it's not the school that waives the tuition; it's the 'Chen Guangliang Foundation' that does it. The foundation waives the tuition for certain majors!"

"I understand! They train your son, and then your son goes in to work for them, that's how it is!"

“This job is perfect. My son started at 5000 a month when he joined the company, and his salary has been increasing ever since. Now it’s 1.2 a month.”

"Amazing"

Many people have felt the 'virtuous cycle' here. The 'Chan Kwong Leung Foundation' provides 'scholarships' to certain majors at Hong Kong Polytechnic University, the University of Hong Kong, and the Hong Kong Academy for the Arts, in order to encourage more people to join this industry.

Moreover, these students have no trouble finding jobs after graduation, as they are directly recruited by Chen's companies, and their job prospects are very optimistic.

Some Hong Kong property developers were also taken aback when they saw the news.

Their annual profit is only a few dollars, which is less than the year-end bonuses that other companies give to their employees. This shows how profitable Midea Games and Entertainment is.

The Sing Tao Daily subsequently published the following report: It is estimated that Midea Games Entertainment earned at least US$7000 million in profit last year due to the huge success of Contra, which is equivalent to the profits of a large real estate company. Midea Games Entertainment is merely a subsidiary of Cheung Kong Industrial Group, and the HK$8000 million year-end bonus awarded this time only applies to Midea Games Entertainment's software division.

The news shocked the entire Hong Kong media.

"Who says Hong Kong can't develop the technology industry! This game software is also high-tech! Moreover, Cheung Kong Industrial Group is a genuine technology company with many international patents and world-class product patents."

"Yes! But the development of Hong Kong's technology industry today is inseparable from one person."

“I know, of course it’s Sir Chan Kwong-leung. He started supporting the predecessor of Hong Kong Polytechnic University in the 1950s, promoting the transformation of Hong Kong Polytechnic into Hong Kong Polytechnic University, providing a continuous stream of talent for Hong Kong. Of course, it also provided talent for Cheung Kong Industries.”

"Sir Chen, you have such excellent taste!"

This incident, following the news of "Comic Artist's Lead Artist Driving a Sports Car," has sparked a huge and even prolonged discussion in Hong Kong.

Today, Hong Kong's comic book and game software industries are thriving.

Besides the Chan family businesses, there are also many similar businesses started by people who left the Chan family businesses to start their own, which has driven the development of the entire Hong Kong industry.

In fact, the rise of these industries also spurred the development of Hong Kong's real estate market. After all, as social wealth increases, it naturally flows into real estate and the stock market. (End of Chapter)