Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 183 Open Scheme (Seeking monthly votes, recommendations, and subscriptions!)
The car drove smoothly back to Weiye Building.

Chen Bingwen leaned back in the back seat, closing his eyes to rest, but his brain was working at a rapid pace.

It has been almost half a month since the acquisition of the Kane family's 20% stake in Qingzhou Yingni.

The share transfer procedures have long been completed, and the relevant announcements have already been issued.

According to business practice and the company's articles of association, it is only natural for a major shareholder holding more than 10% of the shares, especially the second largest shareholder, to join the board of directors and participate in corporate governance.

However, Li Jiacheng has remained silent since that seemingly polite but actually cryptic tea gathering at the Mandarin Oriental Hotel.

As the largest shareholder, Cheung Kong Holdings has the full responsibility and obligation to propose convening a board meeting or shareholders' meeting to consider the proposal to appoint new directors.

However, the other party seemed determined to "play dumb," as if they had completely forgotten about it, and just dragged it out silently.

Chen Bingwen sneered inwardly.

He was well aware of Li Jiacheng's plans.

The tactic of delaying is a common strategy in business negotiations.

The other party is simply trying to test his bottom line and patience by delaying, exhausting his energy, and even hoping that he will back down or make concessions in some way.

May is almost over, and June is just around the corner.

Time is of the essence, and Shen Bi's plan to find a "white glove" cannot be postponed indefinitely.

He needs to acquire enough leverage with Qingzhou Yingni before HSBC officially launches the Hutchison Whampoa share transfer to gain the initiative in negotiations.

Can't wait any longer.

Since the other party is not taking the initiative, we have no choice but to take the initiative ourselves.

He opened his eyes and instructed his secretary, Ali, in the passenger seat: "Ali, once we get back, immediately send a formal letter to the board of directors of Qingzhou Yingni in the name of Sugar Heart Capital."

Ali immediately took out her notebook and pen, and turned around to take notes.

"The letter contains two main points," Chen Bingwen said succinctly. "First, as the second largest shareholder holding 20% ​​of the shares of Qingzhou Yingni Co., Ltd., our company formally requests the board of directors to convene an extraordinary general meeting of shareholders as soon as possible, in accordance with the company's articles of association and regulations."

He paused, then continued, "Secondly, the agenda for the extraordinary general meeting of shareholders has only one item: to review and vote on the proposal to add our company's representatives, Mr. Fang Wenshan and Ms. Ling Peiyi, to the board of directors of Qingzhou Yingni."

"Understood, Mr. Chen." Ali quickly jotted down the key points.

Chen Bingwen nodded and continued, "The wording should be formal and strong, citing relevant legal provisions and the company's articles of association to show that this is our legitimate right as a major shareholder, and that we require the board of directors to respond and arrange a meeting within the statutory time limit."

A copy should be sent to the securities regulatory department for record-keeping.

"Okay, Mr. Chen. I'll draft it as soon as I get back, and after my legal counsel, Attorney Gu, reviews it, I'll send it out by registered mail and fax before I leave work today."

Ali confirmed.

"Hmm." Chen Bingwen nodded in satisfaction.

Sending such a formal letter is tantamount to putting the matter on the table.

The board of directors of Qingzhou Yingni, especially the representatives of Cheung Kong Holdings who hold a dominant position in it, can no longer "play dumb" and delay.

They must respond within the rules.

This is both an exercise of shareholder rights and a form of pressure.

If the other party continues to ignore or refuse, the next step may involve legal proceedings or even a special shareholders' meeting, at which point the situation will become even more unpleasant.

Li Jiacheng is a shrewd businessman; he wouldn't escalate things to that point over something so trivial, as it would be a losing proposition.

Sending this letter is tantamount to putting the other party in a difficult position, forcing them to respond.

Only by getting the other party moving can he find an opportunity to achieve his real goal.

Evening, at the Chinese Building.

Li Ka-shing emerged from his Cheung Kong Holdings office on the top floor on time and took the private elevator directly to the underground parking garage.

The driver was already waiting by his side and opened the door of the Rolls-Royce for him.

He had just gotten into the car when he rubbed his temples and, looking slightly tired, gestured for the driver to start the car.

Before the car even started, his secretary, Hong Xiaolian, rushed out of the elevator with a document in her hand.

Li Jiacheng rolled down the car window: "What's the rush?"

"Mr. Li, Sugar Heart Capital has sent a formal letter!" Hong Xiaolian said as she handed the document into the car. "Regarding Qingzhou Yingni, they are requesting an extraordinary general meeting of shareholders to add two directors."

Li Jiacheng took the document, quickly glanced at the title and key clauses, and his expression darkened slightly.

He nodded, didn't say much, and just waved his hand: "I understand."

He then rolled up the car window, signaling the driver to start the car.

The car drove out of the garage and merged into the evening traffic.

Using the car's interior light, Li Jiacheng quickly scanned the contents of the letter.

The letter was very formal, well-founded, and clearly stated its requirements, and it was also copied to the Securities Regulatory Commission.

He slightly turned the corners of his mouth down.

This Chen Bingwen is indeed not someone to be trifled with; he directly brought the matter to the forefront, forcing him to make a statement.

Back at their home at 79 Deep Water Bay, his wife, Chong Yuet Ming, greeted him as usual.

"Brother Cheng, you're back? Have some soup first. I asked Agui to make ginseng and chicken soup." Zhuang Yueming said gently in a soft voice.

Li Jiacheng shook his head and waved the fax in his hand: "You eat first, I have something to take care of." After saying that, he went straight into the study.

Zhuang Yueming watched her husband's retreating figure, hesitated for a moment, then turned and went to the kitchen to pour a cup of ginseng tea before entering the study.

In the study, Li Jiacheng placed the letter on the desk and sat in a chair, lost in thought.

Zhuang Yueming placed the ginseng tea beside him and asked softly, "Have you encountered a difficult situation?"

Li Jiacheng rarely brought work troubles home, and even less often did he show such an expression in front of her.

Li Jiacheng handed Zhuang Yueming a fax, saying, "Look, Chen Bingwen from Sugar Heart Capital has made trouble."

They requested an extraordinary general meeting of shareholders to elect two people to the board of directors.

Zhuang Yueming has always been his most trusted partner, not only in life but also in business.

In the early years, when Changjiang Plastics Factory was on the verge of bankruptcy, she took out her own money and, as Zhuang Jing'an's daughter, stepped in to persuade the bank and suppliers to help it overcome the difficulties.

She was not only his wife, but also his indispensable "strategist".

However, her health has been poor in recent years, which is why she has gradually faded from the public eye.

Therefore, when faced with a major issue and unable to make a decision, Li Jiacheng's first thought is to consult Zhuang Yueming.

Zhuang Yueming took the document, quickly glanced through it, and frowned slightly.

"You're moving very fast. This Mr. Chen is using an open strategy to break your delaying tactics."

He is young, full of vigor, and time is on his side.

He can afford to wait, but we... seem to be unable to.

“Yes.” Li Jiacheng rubbed his temples, a rare look of exhaustion on his face. “Yueming, you’re right.”

Before things could even settle down in Yingni, Qingzhou, Chen Bingwen came knocking on their door.

In Tin Shui Wai, China Resources is determined to push things forward. Although we can create some trouble to delay, it will ultimately divert a lot of our energy.

The most crucial point is Hutchison Whampoa, where the main battleground is with Sir Michael Sandberg, requiring a tremendous investment of energy and all of his negotiation skills.

Fighting on multiple fronts, it's difficult to manage both ends.

Li Jiacheng rubbed his temples again and continued, "In Qingzhou Yingni, Chen Bingwen suddenly emerged, took 20% of the shares, and is now formally requesting to join the board of directors."

"That kid has a sharp eye; he's definitely got his eye on that Hung Hom land too. With so many things to manage, it's really hard to keep up with him all the time."

Zhuang Yueming listened quietly without interrupting.

She knew that her husband was at a critical moment in his work, fighting on multiple fronts, and that distraction was the biggest taboo.

After Li Jiacheng finished speaking, Zhuang Yueming slowly said, "Brother Cheng, things should be done one step at a time, and money should be earned penny by penny. You can't rush things."

China Resources lacks practical experience and a team for developing large-scale housing estates on Hong Kong Island.

The joint venture project in Tin Shui Wai is large in scale and has a long development cycle.

As long as we manage to keep the other local real estate developers involved in the project "busy," or if they have internal disagreements, even though China Resources is the major shareholder, it will be difficult for them to achieve much in the short term.

We can stall for time, wait until we've taken over Hutchison Whampoa and recovered, then slowly sort things out and regain control of Tin Shui Wai.

She paused, then looked at the letter on the table: "As for Hutchison Whampoa, the key is indeed HSBC, and Sir Michael Sandberg."

I think you should expedite your contact with Sir Michael Sandberg. Perhaps you could find a suitable opportunity to formally invite him to your home to show our sincerity and respect.

Deep Water Bay offers a more private and relaxed environment, making it easier to discuss certain things at home than in the office.

Let him see our sincerity and strength; perhaps some conditions will be more negotiable then.

"What about Yingni in Qingzhou?" Li Jiacheng pressed, knowing his wife must have a backup plan.

“Since Sugar Capital has already made its intentions clear, dragging things out is not a solution. On the contrary, it may force them to take extreme measures and hold a special shareholders’ meeting, which would make the situation even more unsightly.”

Zhuang Yueming analyzed, "Why not go with the flow and first agree to let them enter the board of directors, give them one or two seats, and appease them temporarily?"

Meet their ostensible demands for participation in corporate governance and keep them on their toes.

Then, immediately find some 'work' for Yingni in Qingzhou.

"Find something to do?" Li Jiacheng asked thoughtfully.

“Yes.” Zhuang Yueming nodded. “For example, we could propose to start preliminary research on one or two real estate development projects that require a lot of funds and effort, or to conduct relocation assessments for factories in remote areas.”

Throw out the topic and let the people at Sugar Heart Capital busy themselves with these trivial and time-consuming things, thus diverting their attention.

In this way, Cheung Kong can free up its resources to continue acquiring retail shares in the market and consolidate its controlling stake.

By the time they realized what was happening, the situation was already decided.

After listening, Li Jiacheng's tightly furrowed brows gradually relaxed.

The wife's strategy was as precise and pragmatic as ever, hitting the nail on the head.

Divide, appease, restrain, and seize the opportunity to consolidate – this combination of tactics can indeed resolve the current passive situation.

“Alright! We’ll do it your way. Yueming, you see things very clearly.” Li Jiacheng made the decision. “Tomorrow I’ll have Hong Xiaolian contact Shen Bi’s secretary to schedule a time.”

In Qingzhou Yingni, a board meeting will be held tomorrow to respond to Sugar Heart Capital's demands.

(End of this chapter)