Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 106 Outsourcing (Seeking monthly votes and recommendations to continue reading)
Kowloon, Wing Hing Soft Drink Factory.

The factory's laboratory was in a complete mess.

There were more than a dozen glass bottles on the table, filled with liquids of varying colors and textures.

Huang Qifa's eyes were bloodshot as he stared at the latest batch of samples.

Technician Lao Zhao wiped his sweat, looking helpless: "Boss Huang, it still doesn't work. This red bean paste is either too thin to stick to the bottle, or it separates into layers as soon as you pour it."

Either it's too thick and clogs the filling valve during filling.

"I finally managed to thicken it a bit, but after cooling it clumped together and precipitated."

Another batch of sesame paste samples showed a layer of oil film on the surface and granular sediment at the bottom.

"The texture is wrong too!" Huang Qifa took a bite, then spat it out. "It's too powdery, not smooth enough, and the sesame flavor isn't strong enough!"
It's nowhere near as good as Chen's!

Technician Xiao Liu said dejectedly, "We boiled it according to the traditional recipe, concentrated it, and then bottled it, but the flavor completely changed after high-temperature sterilization!"
It will either turn sour or have a burnt smell.

Without preservatives, it won't last more than a week.

The week-long experiment consumed a large amount of raw materials, but the result was disheartening.

Bottled sugar water may seem simple, but it actually requires a high level of technical expertise.

Raw material pretreatment, cooking process, sugar content control, stability (prevention of stratification and sedimentation), high-temperature sterilization process, flavor preservation, and shelf life—every step was hampered by Yongxing Factory's rudimentary equipment and inexperienced technical team.

"Bang!" Huang Qifa slammed his fist on the table. "Is it really impossible to do?"

Old Zhao sighed: "Boss Huang, it's not that we're not trying."

Chen's team must have unique techniques, and their equipment is far more advanced than ours.

This kind of money isn't something we can just earn whenever we want.

The stockpiled soft drinks in the warehouse, the bank's calls demanding payment, and the workers' anxious eyes weighed heavily on Huang Qifa's mind like a mountain.

He slumped down and looked out the window toward the Chenji Weiye Building. A thought became clearer and clearer: if he relied on himself, Yongxing Factory would be doomed.

Two days later, at the front desk of Wai Yip Building, Kwun Tong.

Huang Qifa was wearing his best suit and his hair was neatly combed, but the fatigue and anxiety in his eyes were hard to hide.

"Hello, I'm looking for Mr. Chen Bingwen."

"I'm Huang Qifa from Yongxing Soft Drink Factory. I have some business I'd like to discuss with Mr. Chen."

He handed over his business card, his words carrying a hint of ingratiation.

After the receptionist confirmed the appointment, she led him upstairs.

Chen Bingwen's office.

Huang Qifa sat awkwardly on the sofa, his hands clasped tightly together.

"Mr. Chen, I've long admired your name." Huang Qifa forced a smile. "I apologize for bothering you today, but I'd like to ask you for a way out."

Although Chen Bingwen was a little surprised that his colleague Huang Qifa had come to visit, he did not show it on his face.

At this moment, upon hearing Huang Qifa offer a way out, he had a sudden thought and calmly said, "Mr. Huang, you flatter me. We are each doing our own business, why would I need to offer you a way out!"

Huang Qifa took a deep breath and forced a smile that looked worse than a grimace: "Boss Chen, to be honest, my Yongxing Soda Factory is about to go under."

The soft drinks aren't selling, and the warehouse is overflowing with stock.

I saw that Chen's bottled sweet soup was selling very well, so I got the idea to learn how to make it.

He gave a wry smile: "I tried for several days, wasted a lot of money, and the result was simply unacceptable!"

It either separates into layers or has sediment, and the taste is completely different!
That's when I realized that not everyone can handle this challenge!

He looked up and pleaded, "Boss Chen, our factory has an existing filling line. Although it's a bit old, it's still usable."

The workers are all experienced craftsmen, quick and efficient.

I... I want to ask Mr. Chen, could you possibly give our factory a chance to do OEM manufacturing for Chen's?

We guarantee to do it according to Chen's standards, without any compromise!

Chen Bingwen did not answer immediately, but instead quickly considered the advantages and disadvantages of the OEM model in his mind.

On the positive side, Yongxing Factory has a good location, decent equipment, and experienced workers.

If it can be incorporated into Chen Ji's OEM system, it can indeed quickly replenish production capacity, especially to cope with the surge in sweet soup sales brought about by "Drunken Master".

Moreover, Huang Qifa's failure to imitate proves that there are technological barriers to bottled sugar water.

Rather than letting him continue his aimless experimentation, potentially producing substandard products that disrupt the market, it's better to integrate him into our system and turn him into our own production workshop.

It eliminated a potential competitor and turned it into an asset.

The drawbacks are also obvious: the management level, worker quality, and quality control awareness of contract manufacturers may vary.

Quality issues will directly damage Chenji's brand reputation and incur high regulatory costs.

Moreover, the core formula and process are the lifeblood of Chenji. Even with confidentiality agreements, there is a risk of leakage or reverse engineering if the process is outsourced to outsiders.

Chen Bingwen's mind raced, the pros and cons clashing fiercely in his head.

Ultimately, several key points prevailed.

Demand for production capacity is the top priority. The sales peak brought by "Drunken Fist" is fleeting and must be seized to expand market share as soon as possible.

As for the core formula and process, only Yongxing is allowed to manufacture the most basic products with the lowest technical content. At the same time, core technical personnel and quality control personnel are dispatched to strictly supervise the process.

In this way, not only can existing resources be utilized to reduce costs, but Huang Qifa can also be transformed from an imitator into an employee, solving this problem once and for all.

Having thought this through, Chen Bingwen had already made up his mind.

He looked at the uneasy Huang Qifa and said, "Mr. Huang, OEM manufacturing is not out of the question."

Huang Qifa's eyes lit up instantly, as if he had seen the dawn.

“However,” Chen Bingwen changed the subject, questioning, “you must be aware of Chen’s quality requirements.”

The technical issues you just mentioned—stability, taste, and shelf life—must be thoroughly resolved.

Can the existing equipment at Yongxing Factory meet the requirements?

Huang Qifa's heart jumped, and he quickly explained, "The equipment is a bit old, but the key parts can be modified!"
"The technique... we still need to ask Master Chen's school for guidance."

Chen Bingwen continued, "Upgrading the equipment requires money."

Mastering the technology requires time and rigorous execution. Are you prepared for that?

Huang Qifa gritted his teeth and went all out: "Boss Chen, as long as you are willing to give me a chance, I will sell everything I own to fix the factory!"
"Worker training will be conducted strictly according to Chen's rules!" "Alright then," Chen Bingwen decided, "Boss Huang, go back and prepare a detailed report on the current state of the factory and an equipment list."

I will send Production Manager Gao Zhenhai and Deputy Manager Zhong Qiang to your factory for on-site inspection and evaluation.

If the hardware upgrades are feasible, the workers are properly trained, and a quality control system can be established, we can consider outsourcing some of the basic dessert soup production orders to Yongxing Factory.

Huang Qifa was overjoyed and bowed repeatedly, saying, "Thank you, Boss Chen! Thank you, Boss Chen! I'll go back and prepare right away!"

We will definitely cooperate fully!

Meanwhile, in its second week of release, "Drunken Master" continued to see its box office soar.

Golden Harvest Cinemas is packed to capacity, and positive word-of-mouth from audiences continues to grow.

The headlines of entertainment sections in major newspapers were dominated by "Drunken Master" and the name of Jackie Chan.

"Drunken Master" surpasses HK$800 million at the box office in its second week! Jackie Chan's kung fu comedy sweeps Hong Kong!

"Ng See-yuen creates another box office miracle! Calls for Jackie Chan to succeed Bruce Lee are rising!"

"Cinema manager: The line to buy tickets stretched halfway down the street!"

The movie's popularity directly boosted sales of Chenji products.

The line "After a fight, drink a bowl of Chen's sweet soup to soothe your throat" and the close-up shot of the "Chen's Sweet Soup" signboard in the film have become popular scenes among viewers.

Chan Kee, Mong Kok (Standard Store).

"Boss, two bottles of mango pomelo sago! My throat is dry after watching 'Drunken Master,' so I'll drink some sweet soup to soothe it like Jackie Chan did!" Several young people crowded in front of the counter.

"Alright! How about the 'Drunken Fist Set Meal'? Mango Pomelo Sago with a Powerful Herbal Extract, 20% off!" the clerk skillfully promoted.

"Yes! I want this one! I didn't get to try Jinba in the movie, so I'll give it a try!" The young man readily paid.

Similar scenes have been played out at multiple Chenji stores.

Wan Yingying, the deputy manager of the marketing department, happily reported the latest sales report to Chen Bingwen:
"Boss, in the second week of the release of 'Drunken Master,' sales of bottled sugar water increased by 40% compared to the previous week!"

The "Drunken Fist Set Meal" (sweet soup + bouillon) has an order rate as high as 65%!

The sales volume of a single bottle of Jinba also increased by 25% due to the movie posters and word-of-mouth!

The grid team reported that many customers specifically requested "the blue drink that Jackie Chan drinks."

Chen Bingwen nodded: "The movie's popularity has translated into product sales, with remarkable results."

Maintain promotional efforts and coordinate with the film's promotional schedule.

Meanwhile, in the Loewe Film Studios office.

Lo Wei looked at the newspaper reports of "Drunken Master's" box office success and the poster of Jackie Chan holding a Jinba beverage, his face turning ashen.

The assistant cautiously reported, "Mr. Luo, the lawyer's letter has been sent to Chenji Foods and Sugar Heart Capital. However, Sugar Heart Capital is registered in the Cayman Islands, so it may take some time for confirmation of delivery."

"Time? I can't wait!" Luo Wei slammed his fist on the table. "Legal procedures are slow, so let's ruin his reputation first!"

Contact your trusted newspaper immediately!

The following day, Entertainment Star Weekly published a sensational headline on its front page:

Breaking news! Jackie Chan is suspected of being embroiled in a contract dispute! He is suspected of being bribed by Chen Ji Foods to endorse the product in violation of regulations!

"Jackie Chan, star of 'Drunken Master,' has been exposed for secretly accepting a huge advertising deal, infuriating his former company, Lo Wei Films, which may take legal action!"

The article subtly alludes to Chen Ji's use of improper means to poach talent, implying that Cheng Long was opportunistic and disloyal.

Following this, Business Express also published a commentary:

"Rise of a New Power or Unbridled Growth? Legal Concerns Behind Chen Ji Foods' Patent Licensing!"

The article questions the originality of Chenji's bottle cap patent, implying that it may involve infringement, and alludes to shady dealings in its cooperation with industry giants.

The next morning, as soon as Chen Bingwen arrived at his office, his legal advisor, Gu Yongxian, placed two newspapers on his desk.

He pointed to the commentary section in *Business Express* and said to Chen Bingwen,
"Chen Sheng, Luo Wei's side is like a toad jumping on your foot, disgusting but with limited strength."

Cheng Long's contract terms are clear, and Sugar Heart Capital's registered location is a natural barrier, so the lawsuit will likely drag on. But this one," he said gravely, "has a very tricky angle, and it's also very dangerous."

Chen Bingwen picked up the newspaper, his eyes quickly scanning the article about patent concerns. His face was expressionless, but his eyes turned cold.

"Patents are our strongest moat and the foundation of Chenji."

Anyone who tries to undermine this foundation, even by simply spreading doubts, could have negative consequences and mislead consumers.

Gu Yongxian analyzed, "This doesn't seem like Luo Wei's simple act of venting his anger. There might be someone more knowledgeable behind the scenes giving him guidance, or it might just be the magazine trying to create a big news story."

Chen Bingwen put down the newspaper and leaned back in his chair.

"Love wants to stall us with mud, we can play along with the process."

But if someone wants to burn our foundations, then we can't just defend ourselves.

His tone was calm, yet carried an undeniable determination: "Attorney Gu, I do not wish to see another commentary in this Business Express, or any subsequent media outlets that question the legality of our patents."

“Understood.” Gu Yongxian replied immediately. “On the legal front, I will immediately send a formal lawyer’s letter to Business Express in the name of Chenji Foods, demanding that they publish a correction statement and apology in a prominent position to clarify their false speculations. Otherwise, we will file a lawsuit for damaging business reputation.”

In these types of lawsuits, the burden of proof lies with them, and they often find it difficult to withstand the pressure.

“Not enough.” Chen Bingwen shook his head. “A legal response is the bottom line, but it’s too slow.”

We must immediately suppress such voices in public opinion.

After a moment's thought, he gave the order:
"First, contact the Patent Administration Office and, on their behalf, issue a brief and powerful statement to major media outlets, emphasizing that Chenji's diamond-shaped anti-slip bottle cap patent has passed international patent examination and its authenticity is indisputable. Using the voice of a third-party professional organization is more powerful than our own pronouncements."

"Secondly, Wan Yingying, the deputy manager of the marketing department, was appointed as the official spokesperson for Chen Ji Foods and given an exclusive interview to the financial sections of Oriental Daily and Ming Pao."

The official statement from the public is: Chenji focuses on product innovation and technological breakthroughs, and has complete and indisputable ownership of all its independently developed patented technologies. Chenji reserves all rights to pursue legal action against any unverified malicious speculation and commercial defamation.

Your tone should be firm, and your posture should be authoritative.

“Third,” Chen Bingwen narrowed his eyes, “investigate who wrote this commentary in Business Express and whether it was influenced by other factors.”

If the newspaper is just trying to grab attention, then they should pay the price.

"If someone instructed them to do this."

He didn't finish speaking, but Gu Yongxian understood perfectly.

“If someone is behind this, we need to find the source before deciding whether to punish the dog or the owner.” Gu Yongxian nodded. “I’ll take care of it immediately.”

(End of this chapter)