Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 127 China Resources Ng Fung (Seeking monthly votes, recommendations, and continued reading)
January 3, 1979, Hong Kong Island.

Top-floor office of Weiye Building.

Chen Bingwen had just finished processing a few documents when the phone on his desk rang.

“Mr. Chen, this is Li Guowei.” Li Guowei’s voice came from the other end of the phone. “Mr. Wang Jianjun asked me to pass on this message to you.”

Samples of coconut milk and mangoes, organized for Chen's company, have arrived at Bao'an County Station and are undergoing customs clearance procedures. They are expected to arrive in Hong Kong Island tomorrow afternoon.

Chen Bingwen perked up upon hearing this: "Great! Manager Li, thank you so much! Please let me know as soon as the samples arrive."

“No problem, Mr. Chen,” Li Guowei replied.

After hanging up the phone, Chen Bingwen was very happy and asked his secretary, Ali, to bring Ling Peiyi over.

This is the first batch of coconut milk and mango raw material samples organized in mainland China through Wang Jianjun's connections.

This shipment is of great significance.

Chen Ji's bottled desserts, especially mango pomelo sago and coconut milk sago, rely heavily on imports of their core ingredients, coconut milk and mango, from Thailand and Southeast Asia.

Shipping is time-consuming, costly, and highly susceptible to weather and international events.

During typhoon season, port closures and disruptions to raw material supplies always exist.

Even though Thai Golden Elephant Foods has been acquired by Chen Bingwen through Sugar Heart Capital, the risk of raw material supply disruptions remains unavoidable.

Therefore, when Wang Jianjun visited and proposed the order for 200 million bags of instant beverage powder, Chen Bingwen saw far more than just a one-off deal.

What he saw was a golden opportunity.

This presents an opportunity to unlock the supply of high-quality raw materials from the mainland, enabling Chen Ji to establish a more stable, economical, and secure core supply chain.

Because he was very clear that during this period, it was important to establish a stable supply chain in mainland China for coconut milk, mangoes, and other fruits as ingredients for sweet soups.

The resources and efficiency that Chen Ji himself could mobilize were completely incomparable to those of the organization behind Wang Jianjun.

Therefore, if the mainland can provide a stable supply of high-quality raw materials, Chen Ji's supply chain will have an additional solid leg.

More importantly, raw materials from inland areas can be transported by rail, offering significant advantages in both speed and cost.

Ling Peiyi had been in Singapore for some time, responsible for developing and integrating the Southeast Asian market.

Although she had a general understanding of the specifics of the raw material channels in mainland China, the core follow-up implementation work required her, as the operations director, to personally coordinate and arrange.

Chen Bingwen had to explain the importance of this to her.

Ling Peiyi arrived at the office quickly.

"Chen Sheng, you were looking for me?"

"Director Ling, please sit down." Chen Bingwen gestured for her to sit down and explained with a smile, "I just received a call from Manager Li Guowei of China Resources Company."

Back on the mainland, the first batch of coconut milk and mango samples, which Wang Jianjun helped organize, will be delivered to the factory tomorrow afternoon.

Upon hearing this, Ling Peiyi's face immediately lit up with joy: "So fast? That's great!"

If the quality is right, our raw material costs can be reduced by at least 15%, and more importantly, the supply will be much more stable.

“Cost is secondary.” Chen Bingwen shook his head, his expression becoming serious. “Director Ling, have you thought about this?”

Why must I rely on Wang Jianjun's connection instead of sending our own people to set up procurement points directly in Qiongzhou and western Guangdong?

Ling Peiyi thought for a moment: "If we go by ourselves, we won't be familiar with the place, and the procedures might be complicated and inefficient."

“It’s more than just complicated.” Chen Bingwen chuckled. “When Chen’s Foods goes to the mainland, it’s just an ordinary overseas business organization.”

Sourcing from the source, inter-provincial transportation, and especially export quarantine and customs clearance—each step presents unfamiliar and extremely time-consuming barriers for us.

He paused, then emphasized, "But the organization behind Wang Jianjun is different."

Their simple act of saying hello is more effective than us running ourselves ragged.

Led by them, and with the help of China Resources Ng Fung Holdings, we can quickly gather a large quantity of high-quality raw materials that meet our standards from the best production areas.

Then, through the "Three Express Trains" green channel, the goods are transported directly, efficiently, and safely to Hong Kong Island.

The organizational efficiency and coordination capabilities demonstrated here far exceed what any commercial company can achieve.

If we tried to do it ourselves, it might take us six months to sort things out, but they could get everything running smoothly in just a few words and a few days.

Chen Bingwen looked at Ling Peiyi and pointed out the key point: "This is the core value of this channel."

It not only provides cheaper raw materials, but more importantly, it offers a level of stability and efficiency that we simply cannot achieve on our own, greatly reducing potential risks in the supply chain.

This source of raw materials from mainland China is no less significant to Chenji than capturing the Singapore market, and perhaps even more so.

"You're in Singapore, so you should understand this all too well: without an stable supply of raw materials, no matter how well you do in the market, it's all just castles in the air."

Ling Peiyi nodded immediately, deeply moved: "Yes, in Singapore, the port was closed once during the typhoon season, and there was almost a supply disruption. Fortunately, there was still enough stock at the time."

I never want to experience that feeling of constant anxiety again.

“That’s right,” Chen Bingwen affirmed. “Therefore, this mainland route brings not only a 15%-20% reduction in costs, but more importantly, stability and resilience.”

Rail transport is unaffected by typhoons, has fixed schedules, is fast, and has low losses.

He paused, then said, "Moreover, this channel was personally coordinated by the unit behind Wang Jianjun, and executed by China Resources Ng Fung Hong. Its organizational efficiency and reliability are far superior to what we can achieve by going to the mainland on our own."

The value of this far exceeds the small amount of shipping costs saved.

Ling Peiyi fully understood Chen Bingwen's intention, and her expression became serious: "Mr. Chen, I understand."

This line must be maintained and operated as a core strategic asset.

Don't worry, I'll personally handle the follow-up work.

“That’s right.” Chen Bingwen nodded in satisfaction. “Also, please inform Liang Qiming in the finance department to prepare the payment for the goods, and the price will be as previously agreed.”

"As long as the raw materials arrive at the factory tomorrow and meet our quality requirements after inspection, we will make payment as soon as possible."

“Okay!” Ling Peiyi nodded in response.

The following afternoon, a refrigerated truck bearing the "Ng Fung Hong" logo drove into the Kwun Tong factory area.

Li Guowei personally accompanied the car over.

Chen Bingwen, Ling Peiyi, Gao Zhenhai, Zhong Qiang and Zhou Zhiyuan were already waiting in the unloading area.

After exchanging a few pleasantries, Li Guowei arranged for workers to unload several sealed containers and baskets of mangoes from the refrigerated truck.

Zhou Zhiyuan opened a sealed container, and a rich coconut aroma instantly wafted out.

He used special tools to take samples, carefully observed their color and texture, and then tasted them carefully with a small spoon.

"It is milky white in color, with a uniform and delicate texture, and no layering or clumping."

It has a pure and rich coconut aroma, a smooth texture, moderate sweetness, and no off-flavors or impurities.

Grade A product, fully compliant with standards!

Zhou Zhiyuan quickly gave his conclusion.

He then picked up a mango, skillfully cut it open, and observed the plumpness of the flesh and the abundance of juice.

After inspecting everything, Zhou Zhiyuan took a bite and praised, "High sweetness, low acidity, rich and pure mango flavor, very little fiber, and a delicate texture. Superior quality, comparable to top-grade Thai mangoes!"

Chen Bingwen also picked up a mango, cut it open, and tasted it himself.

The sweet juice bursts in your mouth, and the rich aroma of mango instantly fills your oral cavity. The texture is delicate and smooth, with almost no fiber.

The quality is comparable to, and even fresher than, the top-grade mangoes imported from Thailand.

"Great!" Chen Bingwen put down the mango, a satisfied smile on his face. "Manager Li, this batch of samples is of excellent quality!"

It far exceeded our expectations!

Will subsequent supply be able to stabilize at this level?

Li Guowei smiled and said, "Don't worry, Mr. Chen. Now that Wufengxing has accepted the order, we will guarantee both the quality and the quantity."

As long as Chen's place an order, we will definitely supply it on time and with high quality.

Chen Bingwen nodded: "In that case, we hope to establish a closer strategic partnership with Ng Fung Hong!"

Mainland China will be the primary long-term supplier of core ingredients such as bottled sugar water!
Subsequent orders will only increase, not decrease.

Chen Bingwen's words made Li Guowei's smile even wider, but before he could reply, Chen Bingwen added another sentence, which made him almost unable to contain his excitement.

“It’s not just coconut milk and mango,” Chen Bingwen continued. “Manager Li, as long as the quality is consistent with this batch of samples and the supply is stable, Chen’s plans to gradually shift the procurement of other main raw materials such as red beans, mung beans, dried tangerine peel, and mango to Wu Feng Hang as well.”

Li Guowei took a deep breath, and his eyes lit up instantly.

What is the current scale of Chan Kee Foods on Hong Kong Island?
The daily production of bottled sugar water is tens of thousands of bottles. Mobile outlets and standard stores are located throughout Hong Kong and Kowloon. The Singapore market has been opened up, and future sales will only continue to rise.

This means that its demand for raw materials is an extremely large and continuously growing figure.

Are they shifting all their procurement to mainland China?

This isn't just an order; it's practically a mobile, ever-flowing "foreign exchange mine"!
In an era when the country urgently needed foreign exchange reserves, one of the core tasks of Ng Fung Hong, a subsidiary of China Resources, was to find ways to generate foreign exchange income.

The significance of Chen Ji's stable and ever-expanding procurement needs goes far beyond a simple business partnership.

Li Guowei could almost see the approving looks from his superiors and the impressive report data.

He forcibly suppressed his inner elation, but his tone still carried a hint of eagerness: "President Chen! Your decision is absolutely wise!"
Please rest assured that Ng Fung Hong will guarantee the supply to the highest standards!

The quality will only be better than this time, absolutely not worse! And the price will be absolutely fair!

He practically patted his chest and assured them: "We will definitely mobilize the best resources to prioritize meeting Chen Ji's needs!"
Whatever you need, as long as it's available in mainland China, we'll find a way to get it over here!

Chen Bingwen was not surprised by Li Guowei's reaction.

“Okay, I’m relieved to hear Manager Li say that.” Chen Bingwen nodded. “My operations director, Ms. Ling Peiyi, will compile the specific product category list and purchase volume as soon as possible and discuss it in detail with Wufengxing.”

He looked at Ling Peiyi and said, "Director Ling, you are in full charge of this matter. In the next procurement cycle, we will gradually introduce raw materials such as red beans and mung beans supplied from the mainland."

“Understood, Mr. Chen,” Ling Peiyi replied. “I’ll have the marketing department come up with a preliminary plan and standards within a week.”

Li Guowei quickly replied, "Director Ling, please contact me anytime if you have any needs. Wufengxing will be available 24/7!"

The atmosphere became increasingly harmonious.

Li Guowei was already planning how to report this good news to headquarters and how to coordinate with various production areas in mainland China to ensure that this "raw material channel" would be absolutely smooth.

After discussing some specific details, Li Guowei took his leave with great emotion.

He needed to return to the company immediately to report this fantastic news.

On the way back to the Weiye Building, Ling Peiyi smiled and said to Chen Bingwen, "Mr. Chen, getting this supply chain working has really solved our urgent problem."

Not only have costs decreased, but more importantly, I feel much more at ease now; I no longer have to worry about typhoons hitting Thailand.

Gao Zhenhai nodded in agreement: "Yes, Brother Wen. Railway transportation is fast and reliable, much more so than sea freight."

Chen Bingwen nodded and said, "Only by securing our raw material supply can we have the confidence to tackle even tougher challenges."

Now, by aligning interests, we can establish a strong cooperative relationship.

China Resources earned much-needed foreign exchange, while we secured a stable supply of high-quality, low-cost raw materials—a win-win situation for both parties.

The car drove into the underground parking garage of Weiye Building.

After getting out of the car, Chen Bingwen said to Ling Peiyi, "Director Ling, please finalize the subsequent procurement contracts and expand the product categories for raw materials as soon as possible."

Also, please inform Fang Wenshan, Gu Yongxian, and Li Ming to come to my office for a meeting in half an hour.

The North American and Japanese markets can't wait any longer.

Half an hour later, in the conference room on the top floor of the Weiye Building
Chen Bingwen, Ling Peiyi, Fang Wenshan, Gu Yongxian, and Li Ming, the marketing manager, sat around the conference table.

Without exchanging pleasantries, Chen Bingwen cut straight to the point: "We have found a long-term solution to the supply and safety issues of raw materials through mainland channels."

Next, we must focus all our efforts back on market expansion.

Chen Bingwen's gaze swept over the four people. "North America, Europe, and Japan can no longer remain in the analysis and probing stage."

We must act immediately and find a breakthrough.

We cannot fully commit to both markets at the same time.

Resources and energy are insufficient.

We must choose one as the primary point of attack, while maintaining contact and applying pressure on the other.

Chen Bingwen has given very serious thought to expanding into the North American, European, and Japanese markets.

Chen Ji's current strength does not allow it to wage a full-scale war.

If the North American (European) and Japanese markets are developed simultaneously, the different strategies required will inevitably lead to situations where one is neglected while the other is pursued.

The North American market is large, but it has high barriers to entry, concentrated risks, huge upfront investments, and uncertain results.

The biggest risk lies in the inefficiency and uncontrollability of the bottling plant system.

Japan, on the other hand, has a natural advantage due to the existence of the joint venture between Toho Towa and Chen Ji, which gives it a bit of the genes of a local enterprise.

With this connection, Chen's is no longer a complete outsider.

The North American market is certainly tempting, but venturing into a jungle full of giants could leave you with nothing but bones.

Although the Japanese market is highly competitive, the path is clearer and the risks are more controllable.

Therefore, Chen Bingwen plans to concentrate his superior forces to focus on the Japanese market!

With the help of Toho Towa, a major local player, the momentum of "Drunken Master," and controllable channels such as Suntory, they broke into the Japanese market and established a bridgehead in the shortest possible time.

First, conquer Japan, establish a foothold, and accumulate international operational experience.

At the same time, a strategy of using low-cost trials to accumulate experience.

In North America (and Europe), we conducted market testing, established small distribution networks, explored various channels, and evaluated models by supplying small batches of goods and focusing on Asian communities and specific channels (such as Chinese supermarkets).

This lays the foundation for potential future growth while keeping risks and investments to a minimum.

This is the most stable and smartest approach at this stage.

(End of this chapter)