Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 189 Three-Front Operation! (Seeking monthly votes, recommendations, and subscriptions!)

at this time.

The office phone suddenly rang.

Li Jiacheng walked over and picked up the receiver: "Hello, who is this?"

"Mr. Li, it's me, Zhang Jianhua from China Resources."

Zhang Jianhua's cheerful voice came from the other end of the phone.

Li Jiacheng quickly composed himself and replied with a smile, "Mr. Zhang, hello, hello."

Why do you have time to call me?

"Did I disturb you?" Zhang Jianhua asked politely. "It's mainly about the development of Tin Shui Wai. I have some new ideas that I'd like to discuss with you in person."

I wonder if Mr. Li is available tonight?

Want to grab a casual meal together?

Tin Shui Wai?
Li Jiacheng's heart skipped a beat.

This land is in a remote location and is difficult to develop. Many real estate developers on Hong Kong Island are not optimistic about it and are unwilling to get involved.

He was invited to Beijing last year to attend the National Day celebrations and vaguely sensed some trends, judging that the mainland had long-term plans for the development of Hong Kong Island. That's why he decided to participate in the project led by China Resources.

But he had his own plans.

China Resources has money, but lacks experience and a team to develop large-scale housing estates in Hong Kong.

His original plan was to "take small steps and move quickly".

They first entered the market under the guise of joint development, then gradually acquired shares from other minority shareholders, and finally took control of the project from China Resources.

This way, we can save face for China Resources while still getting a real share of the profits. If the development is successful in the future, we can just share some of the profits with China Resources.

He had been quite proactive, but he hadn't taken any concrete steps to make progress; he was just stalling for time and waiting for an opportunity.

When China Resources could no longer hold on, it voluntarily handed over the leadership to Cheung Kong Holdings.

Now that Zhang Jianhua has suddenly taken the initiative to meet with him and even emphasized "new ideas," he feels something is amiss.

“It’s convenient for Mr. Zhang to invite me,” Li Jiacheng agreed with a smile. “You decide the time and place, and I’ll be there on time.”

"Okay, then see you at Fulin Fishing Port at 7 PM."

"I'll definitely be there."

After hanging up the phone, Li Jiacheng was somewhat puzzled.

Zhang Jianhua's phone call was made at a rather opportune time.

He had just been tricked by Chen Bingwen at Yingni Ni in Qingzhou and was gathering funds to deal with it when news came from Tin Shui Wai.

Is it a coincidence, or is it?

He pondered for a moment, then pressed the internal intercom button: "Xiao Lian, help me check if China Resources has made any unusual moves recently."

"Okay, Mr. Li."

Evening, private room at Fulin Fishing Port.

Li Jiacheng and Zhang Jianhua arrived almost one after the other.

After exchanging a few pleasantries and waiting for the waiter to leave, Zhang Jianhua got down to business.

"Mr. Li, the main reason I asked you to come out today is the Tin Shui Wai project. The group is determined to push it forward vigorously."

Zhang Jianhua poured Li Jiacheng a cup of tea, his voice calm but with a hint of determination.

"Oh? That's good news," Li Jiacheng said with a smile. "What specific plans does Mr. Zhang have?"

“The previous plan was indeed a bit idealistic, and the scope was too broad.” Zhang Jianhua didn’t mince words. “We adjusted our thinking and decided to adopt a strategy of ‘overall planning, phased implementation, and rolling development’.”

Li Jiacheng listened, and a slight thought crossed his mind.

This strategy sounds very pragmatic, unlike the previous style within China Resources that emphasized scale while neglecting efficiency.

"The first step is to concentrate all resources to create a core 'model demonstration zone'."

Zhang Jianhua continued, "We will build roads, water, electricity, schools, medical stations, and commercial facilities to a high standard, so that citizens can see tangible things first and build market confidence."

"The second step is to use the revenue and popularity generated by the demonstration zone to develop the next area on a rolling basis."

This reduces financial pressure and keeps risks under control.

"In addition, we are also actively communicating with the Public Works Department of the Hong Kong government to try to win the general contracting of the planned municipal works. I heard that there is a 15% profit guarantee."

"Of course, the most important thing is that the funds are in place. So the group decided to immediately launch the detailed planning and construction bidding for the demonstration zone, and the funds will be secured at the same time."

At this point, Zhang Jianhua looked at Li Jiacheng and said, "According to the shareholding ratio of the joint development company, Cheung Kong Holdings holds 12.5% ​​of the shares."

Preliminary estimates suggest that the first phase of investment will require approximately one billion yuan, with Cheung Kong Holdings needing to contribute 125 million Hong Kong dollars.

Mr. Li, please prepare the funds as soon as possible; the project can't wait.

Li Jiacheng's smile remained unchanged, but his heart sank.

One hundred and twenty-five million!

We need to hurry!

This is completely contrary to his original plan of "slow and steady wins the race".

Who gave China Resources this advice?

Such a rapid and decisive change of mind?

He immediately thought of Chen Bingwen, who had been competing with him for shares in Yingni Ni, Qingzhou, in the past two days.

That kid seems to have a good relationship with China Resources, and the land next to Watsons is adjacent to Tin Shui Wai. Could it be him?

"Mr. Zhang, this decision is well made, and the strategy has been adjusted very well." Li Jiacheng praised him first, then changed the subject, "However, 125 million is not a small amount, and it will take time to mobilize the funds."

Moreover, the real estate market is currently operating at a high level, and financing costs are also high. Investing such a large sum of money so quickly carries significant risks.

“There are definitely risks, but the opportunities are even greater.” Zhang Jianhua’s attitude was firm. “Both the Hong Kong government and the group hope that the project can yield results as soon as possible.”

In terms of funding, I would appreciate Mr. Li's continued support.

If Cheung Kong Holdings faces genuine difficulties in the short term, we can consider adjusting our shareholding structure and introducing new strategic investors.

These words sound polite, but they actually carry a sense of pressure.

Li Jiacheng instantly understood the subtext: If you can afford it, then pay up; if not, we'll find someone else to play.

He certainly didn't want to give up Tin Shui Wai, a tough but potentially lucrative area.

"Mr. Zhang is too kind. Cheung Kong has always fully supported the Tin Shui Wai project."

Li Jiacheng laughed to conceal his inner turmoil, "I will raise the funds as soon as possible and will not delay the project's progress."

"I'm relieved to hear Mr. Li say that." Zhang Jianhua raised his teacup. "Let's drink tea instead of wine and wish each other a successful collaboration."

"Smooth cooperation."

Li Jiacheng found the meal somewhat unappetizing.

After seeing Zhang Jianhua off, he got into his car, his face darkening.

Fighting on three fronts!

In Yingni Village, Qingzhou, Chen Bingwen is being aggressive, driving up the stock price. To maintain control or even complete a takeover, he will need to invest at least 100 million yuan.

Hutchison Whampoa is in close contact with HSBC's Sir Michael Sandberg, a target he is determined to acquire, and the required funds are astronomical, estimated at at least several hundred million in cash.

Now Tin Shui Wai is suddenly going to withdraw another 125 million in cash!
Although Cheung Kong Holdings has substantial assets, most of them are land and projects, and its cash reserves are not unlimited.

Dealing with three financial black holes at the same time is too much pressure.

He rubbed his temples and instructed his secretary, Hong Xiaolian, who was sitting in the front row, "Have the finance department calculate tomorrow how much cash we can quickly access in the short term."

“Yes, Mr. Li.” Hong Xiaolian immediately wrote it down.

Li Jiacheng leaned back in the back seat of the car and closed his eyes.

The image of Chen Bingwen's young yet composed face flashed through my mind.

Was this kid doing it on purpose, or was it just a lucky accident?

Regardless, he was forced into a situation where he had to make a quick decision. The following morning, an extraordinary general meeting of shareholders of Qingzhou Yingni was held in the conference room of Qingzhou Yingni company.

The meeting atmosphere appeared peaceful, but undercurrents were swirling beneath the surface.

Both Li Jiacheng and Chen Bingwen attended the meeting in person.

When the two shook hands and exchanged pleasantries, they both had smiles on their faces, but their eyes held different meanings.

The meeting agenda was simple: to review the proposal to add Fang Wenshan and Ling Peiyi, representatives of Sugar Heart Capital, to the board of directors of Qingzhou Yingni Ni.

Li Jiacheng's side did not set up any obstacles, and even seemed quite cooperative.

The bill was passed smoothly.

But the real contest began at the subsequent board meeting.

The new board of directors consists of seven members: Cheung Kong Holdings holds three seats (including Li Ka-shing himself), Sugar Heart Capital holds two seats (Vincent Fang and Ling Pei-yi), and the other two seats are held by independent directors representing retail investors and minority shareholders.

Li Jiacheng was re-elected as chairman of the board.

When forming the core finance committee, Li Ka-shing proposed that the members of the finance committee should have extensive experience in finance and large-scale project management, and suggested that it be composed of himself and two other directors from Cheung Kong Holdings.

This clearly aims to exclude Sugarheart Capital from the core decision-making circle.

Following Chen Bingwen's prior instructions, Fang Wenshan did not forcefully compete for the quota. He simply stated that as a major shareholder, Sugar Heart Capital hoped that the company could maintain transparency in its finances and major decisions, and that the Finance Committee's resolutions should be reported to all directors regularly.

Li Jiacheng readily agreed.

After the meeting, Li Jiacheng smiled and said to Chen Bingwen, "Mr. Chen, we're family now. I hope we can work together to make the company a success."

"Of course, I still need Mr. Li's guidance."

Chen Bingwen responded with a smile.

Both of them knew in their hearts that this was just the beginning.

On the way back to Weiye Building after leaving Qingzhou Yingni Ni Company.

Fang Wenshan said, "Mr. Chen, the situation at the board meeting is basically as expected."

They've probably got something in mind for excluding us from the Finance Committee!

"Yes, as expected." Chen Bingwen was not surprised. "Li Jiacheng won't let us get in touch with the core so easily."

Your task in the board of directors is to observe and listen more, and to resolutely exercise your voting rights when there are proposals involving the Hung Hom land parcel and the disposal of major assets.

In addition, the technology upgrade proposal prepared by Director Ling can be submitted at an appropriate time.

"clear."

We're all decent people; if someone's going to trip us up, they'll do it both to our faces and behind our backs!
Meanwhile, back in his office at Cheung Kong Holdings, Li Jiacheng immediately asked Hong Xiaolian to bring in the financial director.

A few minutes later, the CFO rushed over, holding the latest financial statements.

"How much cash do we have available right now?" Li Jiacheng asked directly before the CFO could speak.

The CFO flipped through the reports and quickly reported, "The cash on hand is approximately HK$98 million."

However, several loans totaling approximately 40 million yuan are due to be repaid at the beginning of next month.

In addition, the construction and material costs for several ongoing projects also need to be paid, so setting aside 30 million is a safer measure.

Therefore, the number that can truly be flexibly mobilized is probably only around 28 million.

Twenty-eight million.

Li Jiacheng's heart sank.

This amount of money is far from enough to cover both Ying Ni Ni in Qingzhou and Tin Shui Wai at the same time, let alone either one.

"What if we mortgage part of the property or land? How much can we raise in the shortest time?"

he asked.

“For emergency mortgages, the assessment and procedures take time. Moreover, interest rates are currently very high, so the costs are not low.”

The CFO cautiously replied, "We can raise a maximum of 50 to 60 million within a week, which is the limit, and it will seriously affect the cash flow of our other projects."

Fifty or sixty million is still not enough.

To maintain its controlling stake, Qingzhou Yingni needs at least another 100 million, while Tin Shui Wai needs another 125 million.

The gap is too big.

"I understand. You can go now. Prepare a detailed fundraising plan immediately, including collateral selection and interest rate estimates. I need to see it by tomorrow morning."

Li Jiacheng waved his hand, dismissing the financial director.

The unprecedented financial pressure made him feel suffocated.

With only 28 million in available funds, it's a drop in the ocean compared to the funding needs of three companies that each require hundreds of millions.

He had never been so passive before.

What exactly is Chen Bingwen trying to do?
Is it all just for that piece of land in Yingni Ni, Qingzhou?
Or is there another plan?

Could China Resources' sudden change in strategy also be related to him?

A series of questions swirled in his mind.

Thinking of this, he took a deep breath and forced himself to calm down.

Panic solves nothing.

He first ruled out the idea of ​​giving up on Huang.

The acquisition of Hutchison Whampoa is a crucial step for Cheung Kong Holdings in its transformation into a large-scale conglomerate, and its significance is paramount and cannot be compromised.

So, the remaining choice is between Ying Ni Ni in Qingzhou and Tin Shui Wai.

On the Yingni Ni side of Qingzhou, Chen Bingwen adopted a tough stance, seemingly determined to win.

If they continue to fight it out, the financial drain will be a bottomless pit, and it will directly affect the progress of Hutchison Whampoa's acquisition.

But that plot of land in Hung Hom has huge potential, and it would be a real shame to give it up.

More importantly, if Cheung Kong Holdings were to show weakness and withdraw at this point, how would the outside world view it?
Won't it make people think that Changshi can't even beat a young upstart?
This will have a negative impact on CK Asset's reputation and on its future acquisitions.

China Resources suddenly accelerated its efforts in the Tin Shui Wai project, demonstrating a firm stance.

If Cheung Kong doesn't follow suit, China Resources might actually bring in other investors, and Cheung Kong's initial investment and potential future profits would be wasted.

Moreover, refusing to contribute capital would also affect the relationship with China Resources, which is also detrimental to long-term development.

Dilemma.

He needs to find a way to break the deadlock, a way to stabilize the situation at a relatively low cost, or even turn the tables.

Perhaps... we can find a breakthrough by dealing with Chen Bingwen?

Chen Bingwen's foundation is in food and beverage. Is his cash flow really without any pressure?

Where did he get the money to buy Yingni in Qingzhou?
Could it also be high leverage?

A plan gradually took shape in his mind.

He picked up the intercom and pressed the call button: "Xiao Lian, come in for a moment."

Hong Xiaolian came in quickly.

"Arrange for someone to thoroughly investigate the financial situation of Chen Bingwen and Sugar Heart Capital, especially the source of funds for their acquisition of Qingzhou Yingni Ni shares, whether they used high leverage, the leverage ratio, and what the collateral was. Be quick and discreet."

"Understood, Mr. Li." Hong Xiaolian wrote it down.

Li Jiacheng pondered for a moment, then said, "Contact a few financial newspapers and stock commentators with whom we have good relations, and spread the word."

The content states that Chenji Food Company's aggressive expansion and excessive leverage may pose a risk of a broken capital chain, reminding investors to pay attention to the risks in related sectors.

The wording should be vague, but the reference should be clear enough for those in the industry to guess who it refers to.

Hong Xiaolian immediately understood: "Okay, Mr. Li. I will handle things appropriately."

"Go ahead," Li Jiacheng waved his hand.

Whether it succeeds or not, putting some public pressure on Chen Bingwen and undermining market confidence in him might increase his financial pressure.

(End of this chapter)