Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 202 Bao Yugang (Seeking monthly votes, recommendations, and subscriptions!)

The top floor of the Weiye Building.

Chen Bingwen's office.

The phone rang, and Chen Bingwen picked it up. His secretary, Ali, spoke from the other end:
"Mr. Chen, it's a call from Li De, the president of Citibank."

"Get in."

Chen Bingwen said.

"Mr. Chen, congratulations! I saw the announcement, it was clean and efficient."

Li De's voice was tinged with laughter, "You've finally managed to crack that tough nut, Yingni in Qingzhou."

"I would also like to thank President Li De for his previous financial support."

Chen Bingwen smiled and thanked him, saying, "Without that margin loan, we wouldn't dare to operate like that in the secondary market."

"It's mutually beneficial."

Li De then changed the subject, "What are your plans going forward? Will you continue acquiring shares from Hutchison Whampoa?"

Li De asked a very crucial question.

Sugar Capital currently holds a 10.8% stake in Hutchison Whampoa, making it the second-largest shareholder after HSBC.

But HSBC's 33.65% stake is the decisive factor, and Sir Michael Sandberg clearly favors Lee Ka-shing for that portion.

“We’ll slow down the pace of the acquisition for now,” Chen Bingwen said after a moment of thought. “With a stake of over 10%, we’ll have more say.”

Continuing to buy up shares in the secondary market now would be too conspicuous and could easily arouse the suspicion of HSBC and Sir Michael Sandberg, which would be counterproductive.

Let's focus our attention on integrating Qingzhou Yingni first.

Hutchison Whampoa Group is far larger than Yingni in Qingzhou.

If this were to cause a dramatic fluctuation in the stock price, the hundreds of millions of Hong Kong dollars worth of shares might not even qualify for a seat.

Moreover, having just gained control of Qingzhou Yingni, and before they could fully digest and absorb it, launching an attack on Hutchison Whampoa would not only divert funds and energy.

If things go wrong, you might end up losing on both fronts.

Therefore, Chen Bingwen planned to first integrate Yingni in Qingzhou before strategizing for the next step.

“A very wise choice,” Li De agreed. “A steady and pragmatic approach is the right thing to do.”

However, we can't completely ignore Hutchison Whampoa.

Shen Bi is a very deep person and will not easily change his mind.

You need to do more preparation.

After saying that, Li De eagerly added, "If you need any funding, just let me know."

Your bottle cap patent has a very stable cash flow, making you one of our favorite types of customers.

Please feel free to contact me if you need anything.

Whether in the past or in this era, listed companies are always preferred partners for banks.

Seeing that Chen Ji Foods, under Chen Bingwen's leadership, had successively acquired shares in Hutchison Whampoa Group and taken control of Qingzhou Yingni, Li De could not possibly let go of such a high-quality customer.

Therefore, before Chen Bingwen could even speak, Li De offered to help solve the funding needs.

Chen Bingwen was perfectly aware of the reason behind Li De's enthusiasm.

He responded with a smile, "Thank you for the reminder, President Li."

Just as Li De hung up the phone, Fang Wenshan knocked on the door and walked in, his face showing a hint of seriousness.

"Mr. Chen, I just received a message."

HSBC's board of directors held an emergency meeting in the afternoon; the agenda was not disclosed, but it is said that Li Ka-shing went to the HSBC building.

Chen Bingwen nodded, showing no surprise whatsoever.

This situation was entirely within his expectations.

In the Battle of Yingni in Qingzhou, he forced Li Jiacheng to cut his losses and withdraw his funds.

Lee Ka-shing will undoubtedly be even more eager to acquire Hutchison Whampoa, make up for the losses, and prove his strength and determination to Sir Michael Sandberg.

Seeing that Lee Ka-shing had suffered a loss with him, and out of consideration for balance, Sir Michael Sandberg might be more inclined to finalize the deal with Lee Ka-shing as soon as possible, or even offer more favorable terms.

After all, prior to this, Sir Michael Sandberg had promised Li Ka-shing that as long as the conditions offered by Li Ka-shing were suitable, any suggestions from Cheung Kong Holdings would directly provide HSBC with the best options and opportunities for an orderly sale of Hutchison Whampoa ordinary shares at the appropriate time.

Although he had previously interfered with Li Ka-shing's acquisition of Hutchison Whampoa.

Now, they are certainly eager to restart, or even accelerate, this process.

"Mr. Chen, is there anything we need to do?" Fang Wenshan asked.

"No need." Chen Bingwen waved his hand, his expression calm. "It was expected that they would have a meeting."

Li Jiacheng was eager to turn the tide, and Shen Bi also needed to appease him.

But we must not lose our composure.

Our strategy remains unchanged.

Continue to quietly acquire Hutchison Whampoa's retail shares and accelerate the integration of Qingzhou Yingni.

Even if Sir Michael Sandberg wanted to expedite the deal, the HSBC board was not a monolithic entity, and the procedures would take time.

We must use this time difference to consolidate our positions.

“I understand.” Fang Wenshan nodded. “The proposal to reorganize the board of directors at Yingni in Qingzhou is ready and can be submitted to the extraordinary general meeting of shareholders for review at any time.”

"Yes, proceed according to plan." Chen Bingwen turned around. "Also, there are a few things that need to be done immediately."

Fang Wenshan took out his notebook.

"First, you will personally lead a team to immediately take over the board of directors of Qingzhou Yingni and fully control the finances and auditing. The primary task is to thoroughly investigate the detailed plans, property documents, and all potential legal disputes related to the land on Heyuan Street in Hung Hom."

If you have any questions, please let me know immediately.

"Understood." Fang Wenshan nodded.

"Second, business integration must begin immediately."

Assess Qingzhou Yingni's existing cement production capacity, costs, and market sales.

For those with decent profitability, retain and optimize them; for those that are losing money or have poor prospects, formulate plans to shut them down or divest them to stop the bleeding as soon as possible.

The key is to reduce the burden of non-core assets and concentrate resources on real estate development.

"Ok."

“Third,” Chen Bingwen thought for a moment, then continued, “in the name of Qingzhou Yingni, immediately submit an application for rezoning of the Hung Hom Hok Yuen Street site to the Hong Kong government’s Town Planning Board.”

Industrial land will be converted into residential land or mixed commercial land.

The application must provide sufficient justification, emphasizing that the site is located at a future transportation hub and is suitable for developing a modern community.

Fang Wenshan's eyes lit up, but he immediately said, "Mr. Chen, the application process for rezoning is lengthy and unpredictable. It may take a long time, and there's no guarantee of success. The cost is also high; based on the current value of commercial land, the land price supplement could be astronomical."

“I know.” Chen Bingwen nodded. “It’s precisely because it’s difficult that we need to start it immediately.”

First, consult with a professional to understand the process, potential obstacles, and most importantly, the cost estimate.

We need an exact number.

If the land price is too high now, we can hold off and wait for the land price to drop.

However, we must submit our application first to reserve a spot and demonstrate our development intentions.

This matter requires dedicated personnel to follow up on it long-term.

"Understood. I will personally oversee this matter and obtain a preliminary estimate as soon as possible."

Fang Wenshan said solemnly.

“Very good.” Chen Bingwen stood up. “Qingzhou Yingni is our first wholly-owned listed company platform, and we must make it a model.”

Integration must be swift, actions ruthless, and goals clearly defined.

Only after everything is completed can they acquire Chenji Foods in reverse, allowing Chenji to go public through Qingzhou Yingni's shell company.

"Understood." Fang Wenshan solemnly noted it down. "I will immediately assemble a team and move into Yingni, Qingzhou, and produce a preliminary report within a week."

“Yes.” Chen Bingwen nodded. “Only by completely digesting Qingzhou Yingni and turning it into a clean and valuable shell can we achieve a successful reverse acquisition of Chenji Foods and a complete listing in the future.”

This is a crucial step in our capital strategy.

“I understand the significance of this, Mr. Chen,” Fang Wenshan replied solemnly.

“There’s one more thing,” Chen Bingwen added, “In the name of Sugar Heart Capital, contact a few financial media outlets with which we have good relations and spread some word about it.”

We emphasized that after acquiring Qingzhou Yingni, we will focus on our own business integration and real estate development, and have no other major acquisition plans in the short term.

Fang Wenshan laughed and said, "Mr. Chen, you're trying to lull them into a false sense of security and lower their guard against our actions with Hutchison Whampoa!"

"Yes. What is false can be made real, and what is real can be made false."

Now that Sim Bi and Li Jiacheng's attention is definitely focused on Hutchison Whampoa, we can take this opportunity to digest Qingzhou Yingni.

A slight smile appeared on Chen Bingwen's lips.

The game has reached the middle stage, and every move is crucial.

Shen Bi wanted to proceed steadily and surely, while Li Jiacheng wanted to advance step by step.

He, on the other hand, had to constantly come up with unexpected tricks to disrupt their rhythm, drive wedges between them, and buy himself more time and space.

This game is far from over.

The real contest may have only just begun.

However, the movements of HSBC's board of directors and Li Ka-shing reminded him that he could not simply respond passively.

As a quasi-central bank, HSBC wields enormous influence. Rather than remaining completely in the shadows, it would be better to try to find an information channel or potential ally within its board of directors.

Several names flashed through his mind, but he finally settled on Bao Yugang.

Among the HSBC board members, Sir Michael Sandberg, Sir John Symonds, and John Newborg are all British executives, while Y.K. Pao is the only Chinese director. Moreover, the shipping industry is currently experiencing a downturn, which may present an opportunity for contact.

A plan quickly took shape in Chen Bingwen's mind.

He needed to meet with Y.K. Pao, not just for a simple visit, but for a conversation that could truly touch the other person in a private and natural setting.

Golf courses are undoubtedly the most frequently used venues for socializing and negotiating among Hong Kong's top tycoons.

Thinking of this, Chen Bingwen pressed the internal intercom button: "Ali, come in for a moment."

Secretary Ali quickly came in.

"Chen Sheng."

"Prepare a set of golf clubs for me, the best of everything," Chen Bingwen instructed. "Also, make an appointment with Sir Y.K. Pao of Worldwide Shipping."

Take Chen Bingwen of Chen's Foods, for example. He's long admired the Sir's reputation and would like to ask him some questions about ocean shipping and international trade. He asked when would be a convenient time for them to play a game of golf together.

“Okay, Mr. Chen,” Ali replied, then hesitated for a moment, “However, there might be quite a lot of things. I’d like to ask someone from the administration department to come with me and help me carry them.”

“Okay, you can arrange it,” Chen Bingwen replied casually.

After giving his instructions, Chen Bingwen began to carefully recall and sort out the key information from his past life regarding the global shipping and oil markets in the second half of 79, as well as the key information about Bao Yugang himself.

He wanted to use this information to impress Bao Yugang, the shipping tycoon.

In the administration department, Guan Jiahui was absentmindedly organizing documents.

The sudden changes in her family made her experience the coldness of human relationships and economic pressure earlier than her peers. Although getting this internship gave her a temporary relief, the uncertainty of the future still shrouded her heart like a dark cloud.

Ali walked in, her gaze sweeping across the office, and she happened to see Guan Jiahui by the window.

"Miss Guan, are you free now? Come with me to Central to buy some things for Mr. Chen."

Guan Jiahui paused for a moment, then immediately stood up: "Yes, Sister Ali."

She was a little curious and a little nervous, unsure of what she was going to buy or whether it was part of her job.

The two arrived in a company car at a high-end sporting goods store in Central that had an understated yet luxurious facade.

The staff had clearly been notified beforehand and respectfully led them to the VIP room.

When a set of gleaming top-brand golf clubs, a simple yet exquisitely designed golf bag, and a full range of clothing, shoes, hats, gloves, and other equipment were presented before her, Guan Jiahui was somewhat dazzled.

Although she came from a wealthy family, she had never experienced this level of lifestyle.

Ali was clearly an expert, carefully checking the materials and sizes, and occasionally exchanging a few technical terms with the shop assistant in English.

Guan Jiahui followed quietly behind, listening to the shop assistant announce the price of each item.

"This set of titanium alloy shaft golf clubs is now worth HK$120,000."

Custom-made jerseys and shoes, according to Mr. Chen's measurements, cost approximately 30,000 yuan.

This lightweight golf bag costs 28,000.

The shop assistant was calculating skillfully.

Guan Jiahui silently added it up in her mind; this set of equipment alone easily exceeded HK$500,000.

The number made her feel slightly dizzy.

HK$500,000 is an astronomical figure for her family at this moment, enough to solve all the immediate difficulties.

However, here, it was just an outfit that Chen Sheng casually bought for a game of ball.

She watched as Ali signed the invoice without batting an eye and arranged the delivery address, a complex mix of emotions churning within her.

It was the shock of enormous wealth, the bewilderment at the remoteness of this lifestyle, and an indescribable, intense longing.

I long for the day when I can be so at ease, no longer anxious about making a living.

(End of this chapter)