Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 180 A First Encounter Hidden Clues (Seeking monthly votes, recommendations, and subscriptions!)

In mid-May, the weather on Hong Kong Island began to become hot and humid.

Chen Bingwen sat in his office, looking at the April sales report that Ling Peiyi had just sent over.

The numbers in the report are very intuitive.

The ripple effects of the acquisition of Watsons are rapidly becoming apparent.

First, there's production capacity.

After taking over Watsons' soft drink and distilled water plants, and through simple production line modifications and personnel adjustments, the monthly production capacity of Pulse energy drinks increased by 40%.

The production capacity of bottled sugar water has also increased by 30 percent.

The previously strained supply chain has suddenly become much more relaxed.

More importantly, it's about sales channels.

Watsons’ 72 drugstores and 12 ParknShop supermarkets across Hong Kong and Kowloon have become excellent showcases and retail outlets for Chan Kee products.

In April alone, Pulse's monthly sales through Watsons reached HK$1.8 million.

The bottled sugar water series also sold HK$900,000.

This is just the initial result of the product launch.

Chen Bingwen did some mental calculations and found that Watsons' own stores alone could contribute nearly three million in sales per month.

This does not include the ripple effect on traditional convenience stores and supermarkets.

Due to increased advertising investment and channel penetration, Chan Kee's overall turnover in April increased by 25% compared to March, breaking the HK$20 million mark for the first time in a single month.

He put down the report and felt much more at ease.

With its distribution channels and production capacity in Hong Kong Island now firmly established, the next step is to gradually build its own sales channels in the Japanese and European and American markets.

At that moment, Vincent Fang knocked on the door and came in, holding a folder in his hand.

"Mr. Chen, Huoduoli has sent over the information on the shell companies they selected."

Chen Bingwen took the folder and opened it to take a look.

It contains detailed information about two listed companies.

The first one is "Wai Wah Textile", a small textile factory with a market value of about HK$80 million.

The equity structure is simple, with the main shareholders being the founding family, who hold 45% of the shares. Due to losses in the main business, the family intends to sell and cash out.

The advantages are that the acquisition is easy and fast.

The downsides are its small size, average asset quality, and lack of additional value beyond its listed status.

He flipped to the second document, his gaze sharpening slightly.

The second one was none other than "Qingzhou Yingni".

Data shows that this long-established cement company currently has a market value of approximately HK$120 million.

Its main assets include a cement plant in Kowloon and a large tract of land on Hok Yuen Street in Hung Hom.

Currently, the largest single shareholder is Lee Ka-shing of Cheung Kong Holdings, holding approximately 25% of the shares.

The second largest shareholder is the British-owned Kane family, holding approximately 20% of the shares.

The remaining shares are more dispersed.

Chen Bingwen's gaze lingered on the "Hung Hom Hok Yuen Street Plot" for a long time.

He knew the value of that land.

It appears to be industrial land now, but with the development of Hung Hom and Whampoa, its value will be astronomical after the land use is changed in the future.

The data estimates the land as being at the level of industrial land, which is a serious underestimation.

He calculated in his mind: if he could acquire Qingzhou Yingni, the future returns from this land alone could be ten times the current purchase price.

This is a huge arbitrage opportunity.

But the problems remain.

Li Jiacheng has already taken the lead and bought 25%.

This future superman is known for his sharp eye, and he clearly saw the value of Qingzhou Yingni.

It would be extremely difficult to snatch food from his mouth.

In contrast, Weihua Textile was much easier to deal with; there was almost no competition, and money could solve the problem.

Chen Bingwen leaned back in his chair, deep in thought.

Which one should I choose?
Choosing Weihua Textile is a safe bet, as it can quickly achieve the goal of listing and financing, but the returns are limited.

Choosing Yingni in Qingzhou is a huge challenge, but if successful, the rewards are amazing.

With a market value of 120 million, compared to the potential value of that piece of land in Hung Hom, the price difference is too tempting.

Giving up on Weihua Textile only means a slower listing.

But missing out on Qingzhou Yingni might mean missing out on a golden opportunity to multiply your assets.

While there are risks involved in acquiring Qingzhou Yingni, it is worth a try.

He looked up and said to Fang Wenshan, "Contact Huoduoli and tell him that we are interested in Yingni in Qingzhou."

They were asked to first, in an informal capacity as financial advisors, sound out Li Ka-shing and the Kane family's opinion.

Listen carefully to their asking price and terms, and be mindful of your approach; don't reveal that we are the acquiring party.

Fang Wenshan immediately understood Chen Bingwen's intention.

Instead of revealing their identities directly, they use intermediaries as a buffer, leaving room for future contact.

"Understood, Mr. Chen."

I'll take care of it right away.

A few days later, Vincent Fang brought back feedback from Huoduoli.

"Mr. Chen, both sides have responded."

The Kane family's intention to sell is quite clear.

Their family is shifting its focus to Europe and is willing to sell its entire 20% stake, but the asking price is high—HK$35 million—and they insist on a cash transaction, taking a rather firm stance.

Chen Bingwen quickly calculated in his mind that this price was significantly higher than the market price, but still within an acceptable range.

"What about Li Jiacheng?"

Fang Wenshan paused for a moment: "The response from Cheung Kong Holdings was very straightforward."

Li Sheng's secretary directly replied to Huoduoli, stating that Cheung Kong Holdings' investment in Qingzhou Yingni was a long-term strategic investment and that there were currently no plans to sell its shares. They didn't even give him a chance to make an offer.

This result was within Chen Bingwen's expectations.

Since Li Jiacheng has invested heavily, he will not easily give up.

The fact that the other party refused so decisively shows that they were determined to win and did not take other potential competitors seriously at all.

Forcibly seizing the property is not an option; the financial pressure would be too great, and it could easily lead to a lose-lose situation.

Even if we succeed in acquiring it, the cost will far exceed expectations.

But should we just give up like this?

After a moment's thought, Chen Bingwen said to Fang Wenshan, "Reply to Huoduoli, we can accept the Kane family's offer of 35 million in cash to acquire all 20% of their shares."

Please ask them to process the paperwork as soon as possible.

Fang Wenshan exclaimed in surprise, "Mr. Chen, in that case, even if we acquire the shares of the Kane family, we will only have 20%, making us the second-largest shareholder. We won't be able to shake Cheung Kong Holdings' position."

“I know,” Chen Bingwen interrupted him. “Let’s get the tickets first.”

With this 20%, we can finally be considered at the card table.

As for Li Jiacheng's side, there are always more solutions than problems.

Go and do it.

"Okay, I'll arrange it right away." Fang Wenshan didn't ask any more questions and turned to carry out the plan.

The news of the acquisition of shares in the Kane family caused a ripple in the small business circles of Hong Kong Island.

Many people are speculating about who is competing with Li Jiacheng for food.

At this point, Chen Bingwen naturally wouldn't deliberately hide it, nor would he take the initiative to admit it.

The share transfer process proceeded smoothly thanks to the intervention of Huoduoli.

With the funds transferred, Chen Bingwen's Sugar Heart Capital officially became the second largest shareholder of Qingzhou Yingni, holding 20% ​​of the shares.

That afternoon, Fang Wenshan reported to Chen Bingwen, "Mr. Chen, Mr. Li's secretary from Cheung Kong Holdings called and said that Mr. Li would like to invite you for tea tomorrow afternoon."

coming.

Chen Bingwen's lips curled up almost imperceptibly.

Acquiring shares is like knocking on a door; the owner will naturally come out to see who it is.

"Reply to the other party that the time and place will be determined by Mr. Li, and I will definitely be there on time."

The following afternoon, Chen Bingwen met Li Jiacheng at the tea room of the Mandarin Oriental Hotel.

At this time, Li Jiacheng was in his prime, wearing his signature black-rimmed glasses, exuding a calm and composed aura, but his attitude was very polite.

"Chen Sheng, you are young and promising, a truly formidable young man."

Li Jiacheng greeted Chen Bingwen with a smile and personally poured him tea.

"Mr. Li, you flatter me. You are a senior, and I still have much to learn from you."

Chen Bingwen smiled and politely declined.

After a few casual words, Li Jiacheng got down to business: "I heard that Mr. Chen has recently become interested in Yingni in Qingzhou?"

Chen Bingwen knew he was being tested, and answered frankly, "Yes, Mr. Li. It's mainly because I'm optimistic about the future development potential of that piece of land in Hung Hom."

As our Chenji business expands, we also need a stable asset allocation.

As it happened, the Kane family was looking to sell, so we took over, essentially making a financial investment.

He deliberately downplayed his intention to seize control, emphasizing that it was a financial investment and a necessity for his own development.

Li Jiacheng nodded, a half-smile on his face, and said, "Qingzhou Yingni's cement business is still very stable."

That piece of land in Hung Hom is indeed in a good location.

However, changing the land use designation for real estate development is a long process, requires significant investment, and involves many uncertainties.

"Chen Sheng's main beverage business is booming right now, is he able to keep up with all the demands?"

Li Jiacheng's words were loaded with meaning; they were both a reminder and a tactful attempt to dissuade him from the situation.

This implies that this is not the track Chen Bingwen should be playing in right now; the waters are very deep.

Chen Bingwen took a sip of tea and said neither humbly nor arrogantly, "Thank you for the reminder, Mr. Li."

We will definitely give our all to our core business.

As for investment, in the long run, high-quality real estate assets are still worth holding.

We also want to learn from someone as experienced as you, Mr. Li.

Chen Bingwen would not easily back down just because of a few words from Li Jiacheng.

Li Jiacheng looked at Chen Bingwen for a few seconds and suddenly laughed, "It's a good thing that young people have ideas."

The company, Qingzhou Yingni, has dispersed shareholdings, and a stable shareholder structure would be beneficial for everyone.

I have a long-term positive outlook on Qingzhou Yingni and will continue to increase my holdings, hoping to promote its better development.

Li Jiacheng's meaning is already very clear.

He won't sell; he'll buy more, with the goal of gaining controlling interest.

If Chen Bingwen is only interested in making a financial investment, he is welcome.

If you want to compete, then each of you must rely on your own abilities.

Chen Bingwen understood. His purpose in coming today was not to reach a conclusion in one go, but to make his stance clear and establish communication channels.

"Li Sheng's vision is naturally unique."

As shareholders, we are pleased to see the company doing well.

I look forward to your guidance in the future, Mr. Li.

A tea gathering, rife with subtle tension, ended in a seemingly harmonious atmosphere.

Neither side has completely broken off relations, but their true intentions and attitudes are already clear.

On the way back, Chen Bingwen closed his eyes to rest.

He knew that the real contest had only just begun.

A forced acquisition would be too costly; he had to find another way to wrest the delicious cake of Qingzhou Yingni from Li Jiacheng.

(End of this chapter)