Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 103 Unsold Goods (Seeking monthly votes and recommendations to continue reading)
The next morning, Chen Bingwen entered his top-floor office in the Weiye Building on time.

Not long after he sat down, Fang Wenshan knocked on the door and came in with a smile on his face: "Mr. Chen, the patent licensing fees for the three companies have all been received."

As he spoke, he handed over a financial report: "Coca-Cola $80, Nestlé $50, Suntory $20 basic licensing fee."

After deducting necessary taxes and fees, the net income was approximately HK$748 million.

Including our existing cash and payments from Singapore orders, Chan Kee Foods' total bank deposits have now exceeded HK$1100 million.

HK$1100 million!
This number was clearly printed on the briefing.

Chen Bingwen took the briefing, his eyes scanning the string of numbers, and a smile appeared on his face.

With this money, many plans that were previously postponed due to funding concerns can be put on the agenda immediately.

"Excellent, such good news so early in the morning." Chen Bingwen put down the briefing and said happily, "The money has arrived, so we should spend it where necessary."

He looked at Fang Wenshan and said, "Director Fang, there are two things that need to be done as soon as possible."

"First, we purchased a complete set of production equipment for Jinba instant concentrated powder."

Professor Zhou has submitted the final list, which includes a precision mixer, microcapsule encapsulation equipment, spray drying tower, and automatic packaging machine.

Especially for the core components like the spray drying tower and microencapsulation equipment, it's crucial to have reliable suppliers. You can contact suppliers in Germany and Switzerland to inquire about models, pricing, and delivery times.

Tell the supplier that as long as the equipment meets the requirements and the delivery date is guaranteed, we can accept full prepayment.

However, after-sales service must include installation, commissioning, personnel training, and maintenance terms.

The entire process can be handled by Attorney Gu's legal team.

"Secondly, the renovation and upgrading of the sterile production workshop at Fuyuan Factory."

Once Gao Zhenhai isolates the site, he will renovate it into a sterile production workshop according to the production requirements of concentrated powder, achieving a cleanliness level of at least 100,000.

Contact a professional cleanroom engineering company to get a design plan and budget.

The ventilation system, air filtration, floor and wall materials, and pedestrian and material flow channels are all designed to the highest standards.

Budget is not an issue; what I need is speed and quality.

The renovation project and equipment procurement were carried out simultaneously, and the equipment was installed and tested immediately upon arrival.

“Okay,” Fang Wenshan nodded in agreement, then said, “In that case, the investment will probably be quite substantial!”

Chen Bingwen affirmed, "There's no other way; both the equipment and the sterile workshop are necessary components."

Moreover, this one-time investment yields long-term benefits; this money is well spent and shouldn't be skimped on.

Before Fang Wenshan could speak, Chen Bingwen continued:

"Do the math:"
A top-of-the-line spray drying tower and microcapsule equipment, plus the renovation of a sterile workshop, would require a total investment of between HKD 150 million and HKD 200 million.

But with it, we can produce the core Jinba instant concentrated powder in Hong Kong Island.

One ton of concentrated powder can be diluted and bottled into 10 standard bottles of Jinba beverage.

The cost of transporting one ton of powder is only a fraction of the cost of transporting 10 bottles of beverages!
The savings on shipping, storage, and losses can recoup the investment in equipment within a year!
More importantly, with this core base, we can firmly establish Jinba's "roots" in Hong Kong Island.

No matter where the market expands in the future, we will keep the core technologies and production capacity in our own hands.

This is a strategic high ground; it's worth every penny!

He paused, looking at Fang Wenshan: "As for the sterile workshop, it is the cornerstone of quality."

The core values ​​of Jinba are functionality and safety, and its taste and flavor must remain consistent.

A sterile environment can maximize product stability, extend shelf life, and eliminate the risk of microbial contamination.

This money is spent on brand reputation and consumer trust.

One investment yields long-term, stable quality and reputation, resulting in a steady stream of repeat customers.

This is a great deal no matter how you look at it!

As Fang Wenshan listened to Chen Bingwen's clear and logical analysis, his doubts completely disappeared.

"Understood, Mr. Chen!"
Chen Bingwen added, "Concentrated powder is the key for us to open up the global market, and we cannot let the production process lag behind."

at the same time.

In the office of Nan Hua Trading in Singapore, Lin Wenxiong stared blankly at the latest sales report on the table, his brows furrowed.

The report shows that the sales curve for bottled sugar water continues to rise steadily, just like the rising temperature in this tropical island nation, indicating clear market demand.

However, the line representing Jinba energy drink next to it appears flat and even somewhat sluggish.

This situation left him completely baffled.

The first batch of 50,000 bottles of Jinba, which were given away with the sugar water as a promotional gift, had an exceptionally good effect and were sold out almost within a week.

The market response has been enthusiastic, with many grocery store owners who tried it out calling to inquire when it will be officially available.

He originally thought that Jinba would explode in the market as soon as it was officially launched, just like it did in Hong Kong.

Therefore, he placed an order for another 50,000 bottles, and there is still a lot of inventory piled up in the warehouse.

But reality dealt him a heavy blow.

After its official launch, Jinba's sales were lukewarm, falling far short of expectations and performing drastically differently from the sales of other dessert products.

"It doesn't make sense," Lin Wenxiong muttered to himself, pushing aside the reports and walking to the window, looking down at the bustling street below. "The taste is fine, and the energizing effect is obvious. It was so popular during the promotion, so why is it not selling well now?"

He recalled the news from Hong Kong Island that as soon as Jinba was launched, it quickly became an essential energy booster for factory areas, cargo terminals, and taxi drivers, with sales soaring.

But why do the same products fail to adapt to Singapore?

Is the price too high?

Or is it because the distribution channels weren't established correctly?
Or perhaps the consumers here simply don't need this kind of energy drink?
Various guesses swirled in his mind, but he couldn't find a definite answer.

This severe mismatch between input and output left even this seasoned trader feeling somewhat frustrated and puzzled. He picked up the phone, then put it down again.

I felt that I couldn't explain this to Chen Bingwen over the phone, and it would make me look incompetent.

He decided to observe for a few more days, go deeper into the market, and find out the real reason before making a decision.

Lin Wenxiong picked up his coat and decided to personally visit several key sales points.

He refused to believe that the problem couldn't be found.

Meanwhile, at Wing Hing Soft Drink Factory, a long-established soft drink factory in Kowloon Bay, Hong Kong Island, manager Wong Kai-fat was worried about the warehouse full of unsold soft drinks, his mood strangely similar to that of Lin Wenxiong, who was far away in Singapore.

The production line has long since stopped, and the sweet, carbonated smell no longer fills the air.

In the warehouse, boxes of glass-bottled soda labeled "Fresh Orange Dew" and "Pineapple Treasure" were piled high.

These once-popular local soft drinks have almost lost all market share under the impact of international giants such as Coca-Cola and Pepsi, as well as emerging local beverage companies.

"Uncle Cai, Wellcome and ParknShop have said they're not ordering our goods for the time being."

A young man rushed in, looking dejected and panting, and reported, "They said sales are so bad, the stock is taking up too much space, and they want us to go and bring back the old inventory ourselves."

Huang Qifa sighed heavily, his face clouded with worry.

Pull it back?
Where can we pile them up if we bring them back?

The warehouse is already overflowing!

Workers' wages need to be paid, and factory rent needs to be paid. If things continue like this, Yongxing Soda Factory, a well-established brand with over 20 years of history, might be ruined in his hands.

He walked out of the office in frustration and wandered aimlessly on the streets outside the factory to relieve his irritation.

The sunlight was blinding, but he felt no warmth at all.

As he passed the corner store, he habitually glanced at the freezer.

That glance stunned him.

In the freezer, his neglected "Fresh Orange Dew" was relegated to a corner, while in the most prominent position, several bottles of tempting-looking and exquisitely packaged beverages were displayed.

One is the amber-colored "Chen Ji Tangerine Peel Red Bean Paste," and the other is the milky white "Chen Ji Mango Pomelo Sago" with mango pulp.

More importantly, in less than five minutes, he saw more than one customer open the freezer and take away "Chen Ji's" bottled sugar water without hesitation, without even glancing at the soda next to it.

Huang Qifa felt as if something had squeezed his heart tightly, and an indescribable sense of frustration and shock welled up inside him.

He had previously focused all his attention on how to compete with giants like Coca-Cola and Pepsi, how to improve the taste of soft drinks, reduce costs, and promote sales, and had never given a second glance to "sugar water," a traditional beverage that he considered "unworthy of being served."

In his deeply ingrained belief, soft drinks are the modern, fashionable, and thirst-quenching choice, while sweet drinks are merely an after-dinner pastime or a preference of the older generation, with a limited market.

However, the scene before his eyes completely overturned his understanding!
Bottled sugar water?

This stuff is selling so well?!
It sells so well that it completely crushes traditional soft drinks?!

He stared intently at the rows of "Chen Ji" desserts in the freezer; they were like magnets, firmly attracting customers' eyes and wallets.

The transparent glass bottle, the readily visible and abundant contents, and the "Chan Kee" brand, now a household name in Hong Kong, together create a powerful attraction.

In comparison, his own orange soda bottle seemed so cheap and unremarkable.

What made his heart ache even more was that he caught a glimpse of the price tag affixed to the freezer glass.

"Fresh Orange Dew" sells for HK$1.5 a bottle, while "Chen Kee Mango Pomelo Sago" is priced at a whopping HK$3.5! The price is more than double!
what does this mean?
This means huge profit margins!
This means that consumers are willing to pay a higher premium for this type of convenient dessert!

The overwhelming sense of disparity instantly overwhelmed Huang Qifa.

His factory's proud production line runs day and night, but the soft drinks it produces are piling up, unsellable, and generating meager profits.

Chen Ji, on the other hand, put the traditional bowl-style sweet soup into bottles, and it sold like hotcakes, and at a higher price!
Bottled sugar water. So this is the darling of the market right now?

A thought flashed through his chaotic thoughts like lightning.

At that moment, he seemed to have found a completely new and unexpected breakthrough.

He immediately turned around, no longer worrying aimlessly, but instead went to several nearby convenience stores and a Wellcome supermarket with a specific purpose.

The situation was strikingly consistent: Chen Ji's bottled sugar water was almost always placed in a prominent position, and it was restocked very quickly.

He even pretended to be a customer and struck up a conversation with a Wellcome store clerk who was restocking the freezer.

"Sister, is this sweet soup selling well?"

"Of course it sells well!" The shop assistant didn't even look up as she neatly arranged the bottles of mango pomelo sago. "Grandmas buy it as a dessert, and young people buy it as a drink. It's hot lately, so it sells even faster!"

It sells much better than soda!
"Look at those sodas over there, they barely sell a few cases a month."

The shop assistant casually pointed to the Yongxing Factory soda bottles next to him, which were covered in dust.

Huang Qifa's face flushed red and then turned pale, but his mind suddenly cleared, and a thought began to grow wildly.

Nobody drinks soft drinks anymore, but there's still a market for sweet soups!
It's still a huge market!
Our Yongxing factory has ready-made filling production lines, sterilizers, and labeling machines!

Although the equipment is a bit old, with some modifications, producing this kind of bottled sugar water would be a piece of cake.

If Chen's can do it, why can't we?

We are a decades-old factory and are no stranger to beverage production!
Who doesn't have a recipe for traditional sweet soups like red bean paste and sesame paste?
A tremendous sense of crisis and a strong urge to imitate instantly overwhelmed Huang Qifa's previous despair.

He felt as if he had seen a lifeline in the darkness, or even a gold mine!
He practically jogged back to the factory, and as soon as he entered, he shouted, "Amin! Call all the senior workers to the conference room for a meeting! Immediately! Right now!"

His face was flushed with excitement, and his eyes were burning:

"We're not making soft drinks anymore!"

We're switching to bottled syrup! Just like Chen's! Hurry! We have to be fast!

(End of this chapter)