Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 124 A Profitable Investment (Seeking monthly votes and recommendations to continue reading)

“Professor Zhang’s suggestion is excellent!” Chen Bingwen immediately stated, “Chen’s does indeed have some new product ideas that desperately need the support of basic research.”

Especially in areas such as the thermal stability of beverages, flavor encapsulation technology, and new convenient packaging.

The research capabilities of the engineering school are exactly what we need.

He looked at Zhou Zhiyuan: "Professor Zhou, could you organize our potential external collaborative research topics in the near future, especially the technical difficulties related to ready-to-drink hot beverages, and discuss the possibility of cooperation with Professor Zhang?"

As for the graduates, we welcome them wholeheartedly!

Upon receiving Chen Bingwen's affirmative reply, Professor Zhang and the other teachers all smiled.

On the way back, Chen Bingwen said to Zhou Zhiyuan, "We can start preliminary research on the paper cup milk tea project."

First, list out the technical challenges, especially the core aspects such as tea powder extraction, milk fat emulsification, sweetness stability, and cup insulation.

The fundamental theoretical aspects can be packaged into multiple research topics, and we would appreciate the assistance of the School of Science and Engineering in their research.

“Understood, Mr. Chen.” Zhou Zhiyuan nodded. “This is indeed a good opportunity to leverage the academy’s resources and accelerate our research and development.”

One week later, in Central Park, New York City.

The afternoon sun shone through the sparse shade of the trees, and citizens and tourists were scattered on the lawn enjoying their leisure time.

Lisa, an employee of the market research company, smiled as she approached a young white man who had just finished jogging and was resting on a bench.

"Excuse me, sir, we are conducting an anonymous taste test for a new energy drink. Could you spare a few minutes of your time?"

Lisa handed over a clear bottle of beverage with no brand markings, only a "Sample C" label.

The young man wiped his sweat and curiously took the bottle: "Of course, I'm thirsty."

He unscrewed the bottle cap, and the diamond-shaped anti-slip pattern on the side of the cap made him pause for a moment.

He easily unscrewed it, tilted his head back, and took a big gulp.

"Wow!" His eyes widened slightly, and he took another sip, savoring it carefully. "This tastes really good!"
It's refreshingly sweet, is it orange flavored?

It also has a slight pineapple aroma?

My throat felt very comfortable after drinking it; it was a little cool but not too so.

This tastes much better than my usual drinks; it's not as sour or sticky.

He looked at the bottle again. "Is this really unbranded?"
Where can I buy it?

On the same day, outside a convenience store in an office building in Shinjuku Ward, Tokyo, Japan.

Market researcher Ms. Tanaka is inviting a young office lady who has just finished get off work to try the drinks.

The well-dressed lady carefully took the small sample cup, first observing the clarity of the liquid before taking a small sip.

"Huh?" She tilted her head slightly, showing a hint of surprise. "It tastes very smooth."

Is it a white peach?
It also has a slightly sour lime flavor?

The sweetness is just right, very refreshing, and completely free of that strange artificial flavoring.

As she spoke, she took another small sip, carefully savoring the aftertaste in her mouth. "My mouth felt very clean after drinking it, without any uncomfortable stickiness."

Is this a tea beverage brand?

But it seems a little different.

Similar scenes were playing out simultaneously in multiple cities across North America and Japan.

Genuine feedback from different regions, professions, and age groups was quickly collected and organized through rigorous questionnaires and interview records, forming detailed reports.

Through international fax and telephone, the information was continuously transmitted back to the headquarters of Chan Kee Foods on Hong Kong Island, across the Pacific Ocean.

At the same time, Gu Yongxian, who had just finished negotiating the distribution rights for "Drunken Fist" in Japan and Southeast Asia, placed a thick stack of documents on Chen Bingwen's desk. "Mr. Chen, I have not failed you."

The negotiations with Dongbao Donghe and Guotai Group have been basically finalized.

This is a preliminary draft of the agreement; please take a look.

Chen Bingwen put down the North American blind test report he was reviewing and looked at the stack of documents.

"Sit down, tell me slowly, what was the result?"

After Gu Yongxian sat down, he took a sip of water from the water handed to him by his secretary, Ali, and began to report: "First, let's talk about Dongbao and Donghe."

I conveyed to the other party the new cooperation idea you proposed, Mr. Chen: to establish a joint venture for in-depth cooperation based on agency distribution and joint promotion.

They were genuinely surprised at first, especially after we rejected a HK$300 million cash buyout offer.

Gu Yongxian smiled and continued, "Mr. Yamamoto, the representative of Toho Towa, remained silent for a full three minutes, repeatedly confirming that we did not want a higher buyout price, but rather genuinely hoped to engage in a longer-term, bundled cooperation."

"Following your instructions, I reiterated our core demands: we will not relinquish ownership, only distribution rights, in order to pursue long-term benefits and joint control over the IP. We hope to leverage Toho Towa's channels and experience to truly make 'Drunken Master' a stepping stone for the Chen Kee brand to enter the Japanese market, rather than just a transaction."

Chen Bingwen nodded slightly; this was exactly the strategic direction he had been hoping for.

Gu Yongxian continued, "After several rounds of negotiation, they finally agreed to this cooperation framework."

He opened a document and explained in detail: "The specific cooperation method is: Chen Ji Foods and Toho Towa will jointly invest in and establish a joint venture company in Tokyo called 'Towa-Chen Ji Joint Promotion Co., Ltd.'"

We hold 55% of the shares, while Dongbao Donghe holds 45%.

Chen Ji Foods provided the exclusive distribution rights for "Drunken Master" in Japan and promised Jackie Chan's cooperation in the film's main promotional activities in Japan;

Toho & Towa, on the other hand, leveraged its strong theatrical distribution network, promotional channels, and localized team resources.

"The core mission of this company is to be responsible for all the publicity and distribution work of 'Drunken Master' in Japan, including theatrical release, media promotion, and ground activities."

All related distribution revenue, box office revenue sharing, and any future commercial licensing fees will be collected by the joint venture and distributed as dividends according to their shareholding ratios.

"As for the promotion of 'Pulse' beverage," Gu Yongxian added, "as the major shareholder of the joint venture, we have priority to vigorously promote 'Pulse' beverage in all the Drunken Fist publicity channels under the joint venture's control."

Dongbao Donghe is committed to providing full support and convenience.

Upon hearing this, Chen Bingwen finally showed a satisfied smile.

This is exactly the result he wanted!
In return for sacrificing some short-term cash buyout fees, we have a physical platform that is deeply integrated with Dongbao Donghe's resources and focuses on long-term brand promotion.

This joint venture will not only serve the film "Drunken Master," but may also help other entertainment products and cultural brands under Chen Kee enter the Japanese market in the future.

Its strategic significance far exceeds HK$300 million!
“Excellent!” Chen Bingwen affirmed.

Gu Yongxian was also quite moved. Chen Bingwen's idea of ​​"not selling copyrights, but selling cooperation" seemed extremely bold and avant-garde, even somewhat risky, in the past.

After all, that was a real sum of several million Hong Kong dollars in cash.

But today, it has not only successfully persuaded industry giants like Toho Towa, but has also built a strategic foothold with great depth and foresight for Chenji to open up the Japanese market.

This courage and foresight in exchanging future profits and brand value for short-term cash is something even a seasoned lawyer like him deeply admires.

He composed himself and continued his report: "Then there's Cathay Group. Regarding the situation in the Southeast Asian market, I directly adopted the 'guaranteed revenue sharing + deep marketing integration' model you proposed."

The results were even better than expected.

The final agreed-upon solution was that Cathay Pacific would pay a minimum guarantee fee of $500,000.

Regardless of the box office performance, we'll get this money first.

In addition, we receive 15% of the net revenue from box office sales in Singapore, Malaysia, Thailand, the Philippines, Indonesia, and other regions.

Gu Yongxian explained, "Cathay is very confident in this film, so it is willing to pay this considerable minimum guarantee in exchange for a preferential share of revenue."

Additionally, you suggested setting up a 'Pulse' promotional point in the lobby of their cinemas.

They stated that as long as Jackie Chan cooperates with the film's promotion, they will fully support the promotion of "Pulse" beverage in its cinema channels, including exclusive displays in cinema lobbies, bundled sales of movie tickets and beverages, and co-branded exposure on all film promotional materials.

Most importantly, they agreed to include a 60-second commercial featuring Jackie Chan specifically filmed for "Pulse" before the main feature of the film, with content that echoed his kung fu kid image in the movie.

“The related venue support, material production and some promotion costs,” Gu Yongxian added, “Cathay agreed to bear a considerable portion, while the joint marketing activities will be jointly funded by both parties.”

They saw the added buzz and appeal this deep partnership could bring to the film's promotion, which was also beneficial to them.

Chen Bingwen listened very attentively. Cathay's proposal almost completely realized his original idea, and even made breakthroughs in some details.

“Excellent work, Attorney Gu.” Chen Bingwen nodded and affirmed, “This is exactly what we wanted.”

It not only brings immediate cash returns and future revenue sharing potential, but more importantly, it provides a powerful engine and readily available high-quality channels for the overseas promotion of our products in both regions.

The depth and breadth of this channel integration are unmatched by traditional buyout distribution.

“Yes, Mr. Chen.” Gu Yongxian sincerely agreed. “Dongbao Donghe was finally persuaded because they saw the long-term win-win value of this model. They also have high expectations for their continued cooperation with Chenji in the future.”

Cathay Pacific was more direct: they wanted hit movies, we wanted distribution channels—a win-win situation where each got what they needed.

"Please double-check the details of the agreement with Director Fang and finalize the signing as soon as possible."

Chen Bingwen nodded and instructed, "Also, inform Ling Peiyi to begin preparing a promotional plan for 'Pulse' beverage in Southeast Asia to coincide with the movie's release."

Cathay's resources should be fully utilized.

"Understood!" Gu Yongxian stood up and left the office with the documents.

The HK$200,000 acquisition of the Japanese and Southeast Asian rights to "Drunken Master" gave Chan Kee a temporary product promotion channel in Japan and Southeast Asia, in addition to the normal sales channels such as supermarkets and grocery stores.

This doesn't even include future box office and video revenue sharing; the value of the vast promotional network currently being built, covering core cinemas in Japan and Southeast Asia, is immeasurable.

"It's incredibly profitable," Chen Bingwen thought to himself.

(End of this chapter)