Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 160 A Polite Refusal (5K words, please vote and recommend to read further)

However, that's true!

However, the condition of "participation in major decision-making" proposed by Huo Duoli crossed his bottom line.

In particular, as a member of the HSBC group, the influence and voice of Huoduoli after entering the board of directors cannot be measured by the simple shareholding ratio.

Their involvement will inevitably have a significant impact on the company's strategy.

Chen Bingwen didn't want to have a "retired emperor" interfering with the business he had built.

He pondered for a moment, then slowly said, "Director Fang, your analysis makes a lot of sense."

Leveraging the resources of Huoduoli and HSBC can indeed help us achieve twice the results with half the effort.

However, their participation in major decision-making is absolutely unacceptable, and there is absolutely no room for negotiation.

Fang Wenshan was slightly taken aback; he hadn't expected Chen Bingwen to be so resolute on this issue.

In his mind, doing business in Hong Kong Island, being able to be associated with the HSBC group is almost every Chinese businessman's dream talisman and passport.

This not only brings huge sums of money and top-tier credit backing, but also signifies a certain "recognition" and "status" within the British-dominated business system.

Why was the shipping magnate able to become the richest man in Hong Kong Island? It was because of HSBC's unscrupulous support!

Chen Bingwen saw his doubt and said seriously, "Capital pursues short-term returns and risk control, while we look at long-term planning and strategic opportunities."

These two things are sometimes contradictory.

We at Chenji operate in the fast-moving consumer goods market, which requires constant innovation and rapid iteration. Sometimes, this inevitably involves launching some radical and risky projects.

If a representative from Huoduoli were to join the board of directors, would they understand why we would suddenly invest a huge sum of money to develop a beverage product that might fail or become a huge hit?

Could you support us in launching a massive, money-burning "buy one get one free" promotional campaign to seize market share?

He paused for a moment, then continued, "Huoduoli wants to invest because it essentially wants to share in our future growth dividends with minimal risk, and even influence or control the direction to some extent."

This is tantamount to inviting a wolf into the house.

We can leverage their channels and expertise, but we must never let them control our development direction.

In an economic system dominated by British capital, it's easy to imagine what would happen if Chinese capital were to be invested in by British capital.

The best-case scenario is that they become vassals, losing their drive and autonomy.

In the worst-case scenario, they may be gradually eroded and integrated in the game of capital, ultimately losing the brand and business they built from scratch.

There are simply too many examples to list.

"So, Mr. Chen, what do you mean?" Fang Wenshan asked.

“In reply to Zheng Jinhua,” Chen Bingwen said without hesitation, “we express our admiration for Huoduoli’s professional capabilities and our expectations for future cooperation.”

We can accept them as full-process financial advisors for both the 'acquisition of Watsons' and the 'backdoor listing' projects, and pay them advisory fees.

“However,” he changed the subject, stating firmly, “the issues of strategic investment and board seats are not being considered at this time.”

The founding team of Chen Ji must maintain absolute control and independent decision-making power over the company; this is our core principle and will not waver.

Fang Wenshan immediately understood Chen Bingwen's deeper meaning: "Doing so can indeed ensure the company's independence and decision-making efficiency, and avoid excessive interference from capital."

Chan Ping-man added, "However, the Wharf Holdings incident also reminded me that Hong Kong Island has more than just Wharf Holdings, so there's no need to put all our eggs in one basket."

As he spoke, he pressed the intercom call button: "Ali, come in for a moment."

Secretary Ali quickly pushed open the door and entered: "Mr. Chen, what can I do for you?"

"Immediately collect and organize detailed information on all American banks in Hong Kong, especially their investment banking divisions, with a focus on Citibank, Morgan Stanley, and Goldman Sachs."

I need to know their head of operations in the Asia-Pacific region, their main areas of business, especially projects involving assisting Chinese-owned companies with mergers, acquisitions, and IPOs.

Chen Bingwen made the arrangements carefully.

Ali quickly jotted it down: "Okay, Mr. Chen. I'll get right on it and have the preliminary report on your desk by tomorrow morning at the latest."

Ali accepted the order and quickly left.

Fang Wenshan suddenly realized and said, "Mr. Chen, are you trying to introduce competition so that Huoduoli knows we don't only have him as an option?"

“It’s not so much a competition,” Chen Bingwen said with a smile. “HSBC is certainly the dominant force in Hong Kong, but American banks are equally powerful and have a broader international perspective.”

We don't need to put all our eggs in one basket.

The international financial landscape is quietly changing.

American banks, especially giants like Citigroup, are expanding their businesses extremely aggressively globally, particularly in emerging markets in the Asia-Pacific region.

They urgently need to create several impressive benchmark cases in the Asia-Pacific region, especially in Hong Kong Island, their bridgehead, to demonstrate the success of their global strategy.

This inherent need for expansion may very well be our best opportunity for cooperation.

"Brilliant!" Fang Wenshan exclaimed sincerely. "I'll go and revise the negotiation strategy to gain more benefits."

“Go ahead. Remember, be enthusiastic, but be firm in your principles,” Chen Bingwen reminded him again.

After Fang Wenshan left, Chen Bingwen called Li Weiming over and explained the matter of going to the mainland to film the tea plantation.

Compared to making movies, making documentaries is a very leisurely and long-term job, and many directors in Hong Kong are willing to do it.

With just a little money, you can assemble a fully staffed filming crew.

However, Chen Bingwen specifically instructed Li Weiming: "What I want is authentic, simple, and moving visuals."

Go find a documentary filmmaker; they understand better how to capture the essence of life and the depth of culture.

“Okay,” Li Weiming nodded in agreement.

But he didn't leave immediately. Instead, he paused for a moment before saying, "Mr. Chen, there's been progress on the things you asked me to do last time."

"Oh? So fast!"

Upon hearing Li Weiming's words, Chen Bingwen asked with great interest.

“Yes, Mr. Chen.” Li Weiming said, flipping open his notebook and reporting in a clear and organized manner:
"The first issue is hiring students to work part-time distributing flyers. We have already reached an agreement with the student unions of schools such as the University of Hong Kong and the Polytechnic University, and recruited fifty students who need part-time work."

After half a day of training, we started distributing promotional leaflets and samples of our "Pulse" and bottled sugar water in densely populated areas such as Mong Kok and Causeway Bay yesterday.

The students were very enthusiastic and reported that the public, especially young people, was quite receptive to the new products.

Chen Bingwen nodded in satisfaction: "Yes, you did a good job."

It is important to ensure that students are paid on time and in full, that their personal safety is guaranteed, and that distribution areas are rationally planned to avoid conflicts with student organizations.

"Understood, Mr. Chen. We will follow up."

Li Weiming made a note in his notebook and continued his report, "We have made initial contact with the head of the marketing department of the Hong Kong Jockey Club."

The other party is very interested in our Chenji brand and products, but we are still negotiating the specific details of the cooperation and the amount of sponsorship.

Their asking price is not low, and they have very high requirements for the brand image of sponsors.

After a brief moment of thought, Chen Bingwen said, "The Jockey Club is a top-tier social circle, and the value of sponsoring it lies in brand enhancement and the expansion of high-end connections."

Money is negotiable, but the key is to secure good benefits, such as naming rights for horse racing, access to VIP boxes, and opportunities to appear at member events.

"Continue to follow up on the specific situation, just be careful to maintain a proper balance."

"Yes, Mr. Chen." Li Weiming took a deep breath and began to report on the most important and complicated item, "The last thing is the matter of participating in the Macau Grand Prix. I have done some preliminary research, and the situation is more complicated than expected."

He opened his notebook and said, "First of all, there's the cost."

If we want to build a competitive team, even if we only participate in one category, the initial investment is enormous.

This includes purchasing or modifying race cars to meet racing standards, with each car costing at least HK$300,000 to HK$500,000.

A professional transportation, maintenance, and logistics support team.

Hire experienced racing drivers and engineers.

There are also consumables such as registration fees, insurance premiums, tires, and fuel.

"Preliminary estimates suggest that at least two million Hong Kong dollars will be needed in the first year, not including potential damage and repair costs." "Secondly, there's the issue of personnel and training." Li Weiming looked troubled. "Local racing talent is extremely scarce on Hong Kong Island, and drivers with major racing experience are even rarer, most of whom are already under contract."

If we cultivate them ourselves, it will be a long process and risky.

Moreover, motorsports are an extremely specialized sport, requiring extensive testing and training to familiarize oneself with the track and break in the vehicle, all of which demand a continuous investment of time and money.

"The biggest challenge is time," he concluded. "The next Guia Grand Prix will be held at the end of the year, leaving less than six months to prepare."

Hastily assembling a team for competition not only makes it difficult to guarantee results but also poses high safety risks. In the event of a serious accident, it could damage the brand image.

Chen Bingwen listened quietly the whole time. After Li Weiming finished speaking, he smiled and said, "Manager Li, your research was very thorough, and your concerns are very reasonable."

However, you may have misunderstood me.

Li Weiming looked at Chen Bingwen with some confusion.

Chen Bingwen looked at Li Weiming and said, "Our core purpose is brand exposure and marketing momentum, not racing on the track."

At least for us at this stage, instead of investing heavily in building a racing team with little chance of success, we should change our approach and pursue higher cost-effectiveness and better communication results.

We can try to reach out to some independent riders or small teams who have racing experience but lack stable sponsorship.

Our Chenji sponsors their race cars and teams, for example, by prominently displaying the 'Pulse' logo on the car body and driver's uniforms.

The sponsorship amount is much lower than what we would pay to build our own team; a few hundred thousand Hong Kong dollars might be enough to gain extremely high exposure.

"Okay, I'll adjust the strategy immediately according to this line of thinking!"

Li Weiming nodded in deep agreement.

"Speaking of which, Manager Li, our 'Pulse' energy drink is currently being tested in North America, leveraging Coca-Cola's sales channels."

"You can gather information on extreme sports athletes in North America during this time,"

Chen Bingwen continued, "Especially those promising emerging athletes, such as those in mountain biking, skateboarding, surfing, and rock climbing."

Li Weiming immediately understood Chen Bingwen's intention: "Mr. Chen, do you mean that we not only want to sponsor the event, but also directly sign athletes to create a deeper and more personalized brand partnership?"

“That’s right!” Chen Bingwen affirmed. “Event sponsorship is like casting a wide net, covering the general public.”

Signing promising extreme athletes is a precise targeting strategy, as they are the best representatives of 'vitality, challenge, and breaking limits', which is highly consistent with the core values ​​of 'Pulse' brand.

Their training routines and match moments are excellent advertising material—more authentic and more likely to resonate with specific consumer groups.

He paused, then explained further: "The North American market, especially California, is the birthplace and center of extreme sports and outdoor culture."

To penetrate the North American market, traditional distribution channels and advertising alone are not enough. We must integrate into their cultural circles and sell our products using cultural promotion methods they can understand.

Signing local athletes is an efficient way to "open up cultural doors."

First, compile a list of names and background information, and then create a preliminary contact plan and budget assessment.

"Understood, Mr. Chen." Li Weiming quickly wrote it down. "I'll arrange for someone to gather information immediately."

Chen Bingwen added, "Ideally, it should be the type that overcomes difficulties and constantly challenges itself, which aligns with the brand spirit we want to convey."

This matter isn't urgent, but we need to start planning for it.

"Okay, Mr. Chen. I'll get back to work now."

Li Weiming closed his notebook, turned around, and left the office.

evening.

Jindu Garden.

When Wang Qiaozhen saw Chen Bingwen push open the door and enter, she quickly stepped forward and asked, "Awen, have you seen your maternal grandparents?"

Seeing this, Chen Guofu also came over, wanting to hear Chen Bingwen's answer.

Looking at his parents' expectant eyes, Chen Bingwen felt a pang of guilt.

He smiled and gently put his hand on Wang Qiaozhen's shoulder: "Mom, this time the time was too tight and there were some restrictions on the procedures, so I was unable to go to Shunde Village in person."

Upon hearing this answer, Wang Qiaozhen's eyes dimmed instantly, and she said with barely concealed disappointment, "Ah, I didn't see it." She murmured to herself, wiping her apron with her hands, somewhat at a loss.

“But!” Chen Bingwen’s tone changed, and he quickly took out a thick envelope and several photos from his briefcase and stuffed them into his mother’s hand. “Manager Li asked his friend at the Shunde Commerce Bureau to personally deliver the things to Bijiang Village!”

These are the photos they brought back!

Li Guowei is a reliable person. He not only delivered the goods, but also had his friend bring a camera to take some photos, develop them overnight, and send them to Dongguan.

Chen Bingwen was overjoyed when he received the photos, never expecting Li Guowei to be so thoughtful.

Otherwise, if I come back empty-handed, I don't know how to comfort my mom!
Upon hearing this, Wang Qiaozhen suddenly raised her head and eagerly took the photo.

When she saw her parents' familiar faces in the photo, her eyes instantly welled up with tears.

In the photo, her parents, Mr. and Mrs. Wang Funian, are wearing the new clothes she bought for them, sitting on bamboo chairs in the yard, beaming with joy.

Standing beside her were her brother, sister-in-law, and several children jumping around.

"Dad, Mom!" Tears welled up in Wang Qiaozhen's eyes instantly. Her fingers trembled as she stroked the photo. "They received it! They really received it! They're even wearing new clothes!"

"Received, received everything!" Chen Bingwen quickly explained, "Manager Li's friend said that Grandpa and Grandma are in good health, but they miss you very much."

I was overjoyed to see your letter and photos, as well as the cookies, candies, and clothes from Hong Kong Island.

My uncle said that they'd start a thorough renovation of the old house in the spring, and that they had enough money.

He then pointed to the envelope: "Inside here is a reply that my uncle wrote overnight, and a letter that my cousin Shuisheng brought back from his home."

My uncle said, "Don't worry, everything is fine at home. The policies have loosened up now, and life is much better than before. You and Dad can relax in Hong Kong and don't need to worry about them all the time."

Wang Qiaozhen clutched the photos and letter tightly, then smiled with relief: "Good! Good! It's good that we received them! It's good that they're doing well!"

She repeated it over and over, as if she had finally unloaded a huge weight that had been weighing on her heart for over a decade.

Chen Guofu nodded with satisfaction and handed Wang Qiaozhen a handkerchief: "Alright, alright, this is a joyous occasion, you should be happy."

We're relieved that Awen handled things so well.

Seeing his mother's excited expression, Chen Bingwen said softly, "Mom, once the policy becomes clearer, I will definitely accompany you back to Shunde to see Grandpa and Grandma. That day shouldn't be far off!"

"Okay! Okay!" Wang Qiaozhen nodded repeatedly, carefully putting away the photos and letters. She seemed to have become a few years younger, and walked briskly towards the kitchen: "We'll have extra dishes tonight!"
I'm going to make some slow-cooked soup. Ah Wen, you've worked hard!

Watching Wang Qiaozhen's retreating figure, Chen Guofu patted his son on the shoulder: "Well done, Awen."

This will make your mom happier than any big business deal you close.

The next day, April 6th.

Governor Murray MacLehose held a press conference.

He announced the results of his visit to the mainland to the public.

Despite this impact, the Hong Kong stock market rose against the trend.

But Chen Bingwen knew that from this moment on, the pace of British capital withdrawal from Hong Kong Island would accelerate.

Governor Murray MacLehose's trip to Yanjing and the subsequent announcement of a large-scale public housing plan, ostensibly aimed at alleviating housing pressure on Hong Kong Island, actually conveyed a clear signal at a deeper level:

The Hong Kong government is making long-term preparations for the handover of power, while shrewd British conglomerates have already begun quietly laying out their exit strategies.

"Jardine Matheson quietly moved its registered office to Bermuda; HSBC reduced its holdings in Hong Kong while accelerating international acquisitions."
Even established players like Swire and Wheelock are gradually shifting their investment focus to Southeast Asia and Australia,” Chen Bingwen muttered to himself. “These old foxes, outwardly peaceful, are secretly preparing their escape routes.”

However, this seemingly pessimistic retreat actually presents a tremendous business opportunity for Chen Bingwen.

"The retreat of British capital and the influx of Chinese capital is an inevitable consequence of the changing times." A sharp glint flashed in his eyes. "What they dare not take, what they dare not gamble on, is precisely my opportunity to rise!"

"We must speed things up."

The acquisition of Watsons, the backdoor listing, the expansion into North America, and the deepening of the mainland market—all these strategic moves require huge amounts of financial support.

Since the decision to reject Huoduoli has been made, an alternative must be found as soon as possible, and it must be a partner that can respect the founder's control and has a greater strategic synergy.

(End of this chapter)