Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 158 Dongguan County Soft Drink Factory (5K words, please vote for me and recommend this book)

Xu Shiwen was willing to mediate and help contact the other shareholders, which Chen Bingwen was naturally happy to see.

This would greatly increase his chances of success in the acquisition.

In the following time, Xu Shiwen not only introduced Watsons' financial situation, production status, employee structure and potential legal risks, but also talked with Chen Bingwen about Watsons' development direction.

The two talked more and more deeply, from Watson's century-old history to the challenges and opportunities of modern retail, and then to the broad prospects of the beverage market.

Finally, Xu Shiwen said with emotion: "Mr. Chen, to be honest, after working at Watsons for so many years, I know that its biggest problem is not its bad assets."

Rather, it suffers from rigid mechanisms and a lack of innovation, and is not valued within the Hutchison Whampoa system, much like a lion with its hands and feet tied.

If we can remove the constraints and provide the right direction and resources, it will surely be revitalized!

Chen Bingwen smiled and comforted her, "Don't worry, Manager Xu, this day will come."

After the morning tea, back at the Weiye Building, Chen Bingwen told Fang Wenshan about his meeting with Xu Shiwen and put him in charge of the next round of liaison work with Xu Shiwen.

The goal is to expedite the signing of equity transfer agreements with Liu Zhitang and other minority shareholders through Xu Shiwen.

After all the negotiations were completed, Chen Ji Foods immediately issued a formal offer to the board of directors of Hutchison Whampoa to acquire its shares in Watsons, making its intentions clear.

“In addition, you should also contact HSBC’s subsidiary, Victory,” Chen Bingwen added to Fang Wenshan, “under the guise of inquiring about the ‘feasibility of M&A financing,’ and sound them out.”

Fang Wenshan immediately understood Chen Bingwen's deeper intention: "Mr. Chen, are you trying to kill two birds with one stone? To test HSBC's possible attitude towards this transaction, and to lay the groundwork for a possible subsequent listing and financing?"

“That’s right.” Chen Bingwen nodded approvingly. “Huoduoli is the corporate finance and investment banking division of HSBC. They may have internal judgments about Hutchison Whampoa’s financial situation, HSBC’s support for Wiley’s strategy, and even Sir Michael Sandberg’s own thoughts.”

Approaching them as potential IPO candidates felt much more natural than directly knocking on Hutchison Whampoa's door.

As Chen's business grows larger, it will inevitably have to deal with banks and other financial institutions in the future.

As Hong Kong's de facto central bank, HSBC not only controls the printing of currency but also influences the fate of almost all large enterprises through its vast business network and shareholdings.

The rise and fall of British giants like Hutchison Whampoa, Swire, and Jardine Matheson are all inseparable from HSBC's influence.

Chen Bingwen knew that as the handover date drew closer, British-owned giants in Hong Kong were transferring assets overseas and reducing their investments in Hong Kong.

As the leading British-owned company, HSBC's most important task now is to find a local "white knight" who can take over and maintain the situation.

Back then, Li Ka-shing acquired Hutchison Whampoa's shares at a price that was almost free. He successfully persuaded Sir Michael Sandberg by taking advantage of HSBC's eagerness to find a "reliable local buyer" during a special historical period.

Otherwise, given Hutchison Whampoa's size, how could he possibly be the one to "swallow an elephant"?

After arranging the acquisition of Watsons, Chen Bingwen picked up the phone and dialed Li Guowei's number from China Resources.

The call was answered quickly, and Li Guowei asked with a smile, "Mr. Chen, you've made up your mind so soon?"

"This matter should be done sooner rather than later; the sooner it's implemented, the sooner it can be put into production!" Chen Bingwen said with a smile.

Li Guowei said, "Good! Mr. Chen is indeed a man of great things. When is a convenient time for you?"

"How about we set it for three days from now?"

"I need some time to arrange company affairs." Chen Bingwen calculated the time.

“No problem! See you at the Luohu border crossing three days from now. I’ll arrange the reception there.” Li Guowei readily agreed.

After hanging up the phone, Chen Bingwen called Ling Peiyi in Japan, Li Mingzhe in Singapore, and Li Ming in South Korea to emphasize the current work priorities.

After arranging everything, Chen Bingwen finally breathed a sigh of relief.

In the evening, Chen Bingwen returned to his home in Jindu Garden for dinner.

At the dinner table, he put down his chopsticks and said to Chen Guofu and Wang Qiaozhen, "Dad, Mom, I'm going to the mainland in three days to take over that beverage factory in Dongguan."

"Really?!" Chen Guofu looked up abruptly, surprised and delighted. "It's the one we talked about at the last party? You've already decided on it so quickly?"

"Yes, it's settled. In the past, the main tasks were to inventory the assets, complete the formalities, and get the factory up and running as soon as possible."

Chen Bingwen nodded.

Wang Qiaozhen was overjoyed and excitedly said repeatedly, "Great news!"
This is a great thing!
Setting up a factory in the mainland offers lower costs and a larger market.

Ah Wen, you're getting more and more capable!

After the initial excitement, Wang Qiaozhen suddenly remembered something, hesitated for a moment, and then said, "Awen, what about your trip to Dongguan this time?"
Dongguan isn't too far from Shunde. Do you have time to visit your hometown in Shunde?

As she spoke, she looked at Chen Bingwen expectantly and said, "Your maternal grandparents are getting old, and you also have two uncles and an aunt. We haven't seen them for many years."

The last time we contacted each other was by letter, and I kept thinking of you in every word.

If you have some free time, could you go and visit them for me?

Wang Qiaozhen has been married and living in Hong Kong Island for over twenty years. Before that, she could still keep in touch with her hometown through letters, exchanging greetings.

But later on, I didn't dare to anymore, for fear that sending letters back home would have a bad influence on my relatives.

This break lasted for more than a decade until Shui Sheng swam over and reconnected with his hometown in Shunde.

Seeing the expectation on his mother's face, Chen Bingwen agreed without hesitation: "Okay, Mom, don't worry."

I'll make time to visit my maternal grandparents, uncle, and aunt in Shunde.

"Yes, yes, yes!" Wang Qiaozhen said repeatedly, a smile spreading across her face. "I'll write the letter tonight!"
Please deliver this to them for me!
Let's give them another red envelope and buy some supplements for their health!

Chen Guofu added from the side, "Yes, we should go back and take a look."

Please help us take some money and supplies back with us. Although the situation there is different from ours, it's always good to show your concern.

“I know what to do, Dad.” Chen Bingwen nodded with a smile.

The next morning, after finishing a few routine official business, Chen Bingwen had Liu Ermeng drive him to the Kwun Tong factory.

When Chen Bingwen found Shui Sheng, he was wearing work clothes and sweating profusely as he directed workers to move raw materials.

"Awen? What brings you here?" Shuisheng asked, somewhat surprised, as he quickly wiped his hands and face with a towel when he saw Chen Bingwen.

"Come over here and I'd like to tell you something." Chen Bingwen patted his shoulder and pulled him aside. "I'm going to the mainland in a couple of days, to Dongguan."

My mom suggested I visit my maternal grandparents in my hometown of Shunde on my way back.

Upon hearing the words "Shunde hometown," Shui Sheng's eyes lit up instantly, but then dimmed again. He had secretly swam here last year, and going back now would likely cause him trouble.

Chen Bingwen saw through his thoughts and said directly, "It's definitely not convenient for you to go back for the time being."

In this way, you can write a letter, or if there's anything you want to bring home, I'll take it back for you.

This will let your family know you're doing well and put their minds at ease.

Shui Sheng nodded heavily, his eyes welling up with tears: "Oh! Okay! Okay! Thank you, Wen!"

I'll write it tonight!
I have so much to say to them.

He was so excited that he became somewhat incoherent.

For those who are away from home, their greatest concern is for their family.

Having the opportunity to deliver the message safely was a great comfort to him.

"No rush, just give it to me before you leave work tomorrow." Chen Bingwen smiled. "Work hard, and once the policies become clearer and the storm passes, it's not impossible for you to go back and visit."

"Yes! I know!" Shui Sheng nodded vigorously, his eyes filled with hope.

Before they knew it, it was the morning of the third day. Chen Bingwen, along with Gao Zhenhai, Zhao Gang, and two other technicians, got into Liu Ermeng's seven-seater car and headed to Luohu Port.

The car was filled with gifts for their hometown and testing tools prepared by Gao Zhenhai and his team.

Along the way, Gao Zhenhai and his companions were both excited and somewhat apprehensive, constantly discussing the possible situations they might encounter.

For them, the mainland was a mysterious and unknown world, where everything was full of challenges.

Chen Bingwen, on the other hand, remained relatively calm. As he watched the scenery outside the window gradually change, his thoughts drifted to the land he was about to set foot on.

Upon arriving at the Luohu border crossing, Li Guowei was already waiting there with an assistant.

After exchanging pleasantries, they went through the checkpoint together.

Upon setting foot on the mainland, Chen Bingwen clearly sensed an atmosphere different from that of Hong Kong Island.

The architecture, clothing, and slogans here all bear a distinct and unique mark of the era.

Although it appears simple overall, it exudes a vibrant and energetic atmosphere.

After passing through customs, three jeeps were already waiting at the checkpoint.

The group boarded the car and headed straight for Dongguan. But the real test was just beginning.

In 1979, National Highway 107 from Shenzhen to Dongguan was just a simple paved road, full of potholes and dust.

Although Jeeps have excellent off-road capabilities, they are still very bumpy when driving on uneven roads.

The people inside the vehicle were swayed from side to side and had to hold on tightly to the handrails to keep their balance.

Gao Zhenhai and the technicians initially looked at the pastoral scenery outside the window with curiosity, but they were quickly exhausted by the long and bumpy ride and their faces began to turn pale.

Occasionally, old Jiefang brand trucks, tractors belching black smoke, and long-distance buses would drive by, raising clouds of dust and forcing jeep drivers to slow down.

Li Guowei's assistant sat in the passenger seat, occasionally introducing the villages and towns they passed along the way.

Seeing this, he apologized somewhat helplessly, "Mr. Chen, everyone, thank you for your hard work."

This road has been in disrepair for years, and the county and region have been trying to raise money to repair it, but funds are really tight, so it hasn't been repaired yet.

"Things will get better," Chen Bingwen said with a smile and certainty.

After nearly three hours of bumpy travel, the convoy of three jeeps finally entered Dongguan County.

When they arrived at the somewhat dilapidated "Dongguan County Soda Factory" gate, everyone in the car, including Chen Bingwen, breathed a long sigh of relief.

Li Guowei had obviously already spoken to the people in Dongguan County beforehand.

As soon as the jeep arrived, three or four people quickly came out from the yard of the soda factory to greet it.

Li Guowei got out of the car first and walked to the front, smiling as he introduced Chen Bingwen to everyone.

"Mr. Chen, this is Director Zhang from the Dongguan County Light Industry Bureau." A middle-aged man wearing glasses and looking like an official stepped forward and warmly shook hands with Chen Bingwen.

"This is Director Liu of the soda factory." A middle-aged man in a blue Zhongshan suit with a dark and honest face then extended his hand, his smile somewhat reserved but very sincere.

"This is Technician Wang, a key technical staff member in the factory." A man who looked to be in his thirties and was wearing arm sleeves also stepped forward to shake hands.

With a smile, Chen Bingwen shook hands and exchanged pleasantries with everyone: "Director Zhang, Factory Director Liu, Technician Wang, thank you all for waiting so long."

I am Chen Bingwen from Chen Ji Foods.

"Mr. Chen, you must be tired from your journey! Welcome, welcome!"

Director Zhang smiled and said politely, "Manager Li told us long ago that Mr. Chen is genuinely interested in investing and developing here, and we will definitely cooperate fully!"

After a brief exchange of pleasantries, Director Liu stepped aside to lead the way: "Mr. Chen, comrades, you must be tired from your long journey. Why don't you come to my office for a cup of tea and rest your feet?"

Chen Bingwen waved his hand and got straight to the point: "Thank you, Director Liu, but there's no rush to drink the tea."

Let's take a look at the factory buildings and equipment first.

He always prefers to get straight to the point and doesn't like to waste time on pointless pleasantries.

"Good, good! Mr. Chen is truly a man of action!"

Director Zhang nodded repeatedly and gestured to Factory Director Liu, "Old Liu, then take Mr. Chen directly to see the situation of our factory."

"Okay! Mr. Chen, everyone, this way please."

Factory Director Liu immediately led the way, and the group headed straight for the production workshop.

The factory area consists of several rows of red brick buildings that look quite old, with slogans from a particular era still visible on the walls, but it is kept relatively clean and tidy.

However, when Director Liu pushed open the double wooden door of the main production workshop, the scene inside surprised Chen Bingwen, Gao Zhenhai, and the others.

In stark contrast to the somewhat worn-out exterior walls, the glass bottle filling production line and equipment inside the workshop are surprisingly new!
The machine was polished to a shine and was very well maintained.

"This is..." Chen Bingwen looked at Li Guowei with some surprise.

Although these devices were not quite up to par with the imported hot filling production line that Chen Ji bought, they were already considered quite advanced and complete for mainland China at that time.

The machines were kept gleaming, and the floor was spotless; it was clear the workers took great care of them.

“Mr. Chen, you didn’t expect this, did you?” Li Guowei explained with a smile, “Last year, Director Liu and his team gritted their teeth and upgraded the production line, hoping to make a big splash. Unfortunately, the market changed, and they encountered difficulties with raw materials and sales channels. Before the new equipment could be fully utilized, the factory was forced to shut down halfway.”

What a waste of such good equipment.

After he finished speaking, he sighed regretfully.

Upon hearing this, Chen Bingwen maintained a polite smile, but his mind immediately understood.

Li Guowei's statement might fool those Hong Kong businessmen who are unfamiliar with the situation on the mainland, but how could it possibly deceive him?

He knew perfectly well that under the planned economy system currently in place in mainland China, local state-owned factories like the Dongguan County Soda Factory had their production tasks entirely planned by the higher-level sugar and wine company, raw materials were allocated according to the plan, and products were purchased and sold by the sugar and wine company.

The factory doesn't need to worry about market changes or sales difficulties at all.

The sugar and wine company buys up whatever is produced; whether or not it can be sold is the sugar and wine company's business.

The claim that the production stoppage was due to "difficulties in raw materials and sales channels" is completely unfounded.

This explanation sounds more like a "standard answer" prepared to explain the current state of the factory.

Chen Bingwen didn't point it out, but followed the conversation and said regretfully, "I really didn't expect that!"

It's such a waste to leave such good equipment idle.

"Director Liu, you guys really had guts back then!"

Factory Director Liu blushed slightly and nodded awkwardly in agreement, "Yes, yes. I was thinking of getting it right the first time, but I didn't expect..." He didn't finish his sentence, but just shook his head.

Chen Bingwen understood and didn't press the matter further.

He then changed the subject, asking, "The equipment is good, but the key is its compatibility and potential."

Director Liu, would it be convenient for you to take a look at the water treatment system, boiler room, and electrical load?

If production capacity is fully utilized, can the existing supporting facilities keep up?

Seeing that Chen Bingwen was no longer pressing for the reason for the production stoppage, Factory Director Liu breathed a sigh of relief and quickly replied, "No problem, it's all in the back. Mr. Chen, this way please!"

The boiler was replaced last year along with the other equipment. The water treatment system is a bit old, but it's been maintained fairly well.

The subsequent investigation went exceptionally smoothly, almost like a natural progression.

A ready-made team of skilled workers is ready to go, and the veteran workers know the equipment like the back of their hand.

The brand-new production line was in excellent condition, almost as if it had been specially prepared to welcome its new owner.

Even the raw material warehouse was cleaned up thoroughly, as if it were just waiting for new raw materials to be stored.

Chen Bingwen knew in his heart that this was by no means the state of an ordinary county-run soda factory.

Wang Jianjun must have done a lot of work in advance to arrange everything so carefully and properly.

After the inspection, I returned to my office.

Gao Zhenhai reported to Chen Bingwen in a low voice: "Brother Sheng, there are basically no problems."

The equipment is new, and the workers are skilled.

The main bottleneck at present is the lack of sterile clean workshops, which is not yet feasible for producing "pulse" functional beverages and instant powder.

However, converting the production line to bottled sugar water is no problem at all; it only requires replacing some molds and adjusting the filling line parameters, and production can begin within a few weeks.

Chen Bingwen nodded to Gao Zhenhai, indicating that he understood.

He then turned to Director Zhang and Factory Director Liu and said directly, "Gentlemen, I have seen the situation, and it is better than expected."

The factory has a very good foundation, and its experienced workers are invaluable assets.

After a moment's thought, he offered a specific solution: "I think we should complete the formalities as soon as possible."

Meanwhile, Manager Gao and his technical team stayed behind and immediately began modifying and debugging the bottled sugar water production line.

Both sides are working diligently to get the factory back to production within a month and start shipping products!

Director Zhang and Factory Director Liu were overjoyed.

The soft drink factory was running well, but just a few days ago, they suddenly received instructions from their superiors to stop production and prepare for a joint venture with Hong Kong businessmen.

Although the entire factory was somewhat puzzled, they still strictly followed the orders.

Upon hearing Chen Bingwen's clear timetable for production, the two finally breathed a sigh of relief.

(End of this chapter)