Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 206 High Fructose Corn Syrup (Seeking monthly votes, recommendations, and subscriptions!)

When Chen Bingwen thought about boosting the stock market value, he couldn't help but think of the upcoming Jia Ning case.

The Hong Kong stock market is truly a goldmine right now.

The Hong Kong Club, the Far East Club, the Gold and Silver Club, and the Kowloon Club coexisted, each operating independently with loose regulation and inconsistent rules.

This environment is practically a breeding ground tailor-made for capital operations.

If it weren't for Margaret Thatcher's fall in Beijing that triggered a black swan event like the real estate crash, Chen Songqing's trick of repeatedly buying and selling the Golden Gate Building and driving up its stock price could have continued for several more years.

Chen Bingwen sneered inwardly.

As a former investment banking manager, he was all too familiar with this trick.

But he is different from those people; he has a solid industrial foundation, which allows him to play a more sophisticated and stable game.

Right now, Qingzhou Yingni is the first piece he is preparing to meticulously refine.

Thinking of this, he pressed the intercom button: "Ali, please ask Attorney Gu to come to my office."

A few minutes later, Gu Yongxian knocked on the door and came in.

"Chen Sheng, you were looking for me?"

"Attorney Gu, please sit down." Chen Bingwen gestured for him to sit down. "There are two things I need you to do."

"Speaking!"

"First, immediately find a British-owned surveying firm, one of the largest, most authoritative, and oldest in Hong Kong Island."

Jardine Matheson's Jones Lang LaSalle, or Cushman & Wakefield, would both be good options.

"What kind of assets is Mr. Chen planning to assess?" Gu Yongxian asked.

"All the land under Qingzhou Yingni's name, especially the industrial land in Hung Hom Crane Park, Kowloon Bay, and Tsuen Wan," Chen Bingwen stated clearly. "Find them and have an asset valuation report made."

The key point is to have them assess these plots based on the highest and best potential use principles, such as estimating their potential value by referring to the market value of similar plots in the surrounding area after being converted to commercial or residential use, rather than using the standards for existing industrial land.

I need a detailed, professional-looking, and convincing valuation report with impressive figures, and the sooner the better.

Gu Yongxian instantly understood Chen Bingwen's intention.

This kind of valuation report is an art in itself, and it is very flexible.

Choosing a long-established British firm like Jones Lang LaSalle is a good option. They have a strong reputation, are very persuasive, and know how to meet clients' needs and deliver figures that satisfy them within a "reasonable" range.

“I understand. I have some connections with both Jones Lang LaSalle and Cushman & Wakefield. I’ll contact them immediately and compare their flexibility.”

Gu Yongxian understood immediately.

"The second thing," Chen Bingwen continued, "is to find a few familiar financial reporters who are willing to do things for money, such as people from the Hong Kong Economic Journal and Economic Weekly, and spread some rumors."

The details are rather vague, stating that we are in preliminary, informal contact with the Hong Kong government's Town Planning Commission to actively explore the possibility of changing the land use of sites such as Hung Hom for large-scale integrated development, which may include commercial, residential, or even new industrial parks.

Don't be too specific, and don't confirm any details, but convey a strong signal that we have the intention and have already begun to act.

He paused, then emphasized: "The core purpose of doing this is only one: to completely reverse the market's inherent perception of Qingzhou Yingni."

We need to make all investors understand that this company is no longer a shabby, low-profit cement plant at its core!

It's a hidden gem company that holds vast tracts of prime land, whose potential value is severely underestimated, and which could transform into a real estate tycoon at any moment!

“I understand, Mr. Chen.” Gu Yongxian nodded and said seriously, “First, solidify the value with professional reports, then ignite expectations with market rumors. Use both methods to reprice.”

"That's right. Let's get these two things done first, and then decide on the next steps based on the situation."

After Gu Yongxian left, Chen Bingwen sorted out his thoughts on his own.

To manipulate the stock price of Qingzhou Yingni, one must proceed in several steps, proceeding cautiously at each step.

The first step is asset revaluation and the release of expectations.

The report from an authoritative surveying firm "proves" the asset's value, while simultaneously releasing "stories" about changing the land use, igniting market imagination.

If the market accepts this story, it is entirely possible for the stock price to rise by 50% to 80% in a short period of time.

The second step is to release some substantial "positive" news in a timely manner after the anticipation has fermented.

For example, the company officially announced its plan to relocate its highly polluting cement production operations to Tuen Mun or Tseung Kwan O, emphasizing that this is a strategic decision to align with the Hong Kong government's environmental policies and optimize the city's layout, laying the foundation for unlocking the value of core sites in the future.

At the same time, the company can announce plans to enter the real estate development sector or explore the possibility of joint development with well-known real estate developers.

Even just an intention is enough to give the market unlimited room for imagination.

Third, once the stock price reaches the desired high level, Qingzhou Yingni, as a listed company, can conduct refinancing operations such as rights issues and share placements.

Exchange overvalued stocks for real cash.

This money can be used to pay for relocation costs, part of the land price, and can also serve as start-up capital for future real estate development.

Use market funds to do our own thing.

However, the pros and cons of this move are obvious, and Chen Bingwen plans to decide based on future circumstances. With this series of combined measures, it's only a matter of time before Qingzhou Yingni's market value multiplies several times over.

After finishing the strategic layout of Qingzhou Yingni, Chen Bingwen picked up another document on the table, which was a work report sent back from North America by Ling Peiyi.

The report shows that, driven by the advertisement featuring the prince and the extensive sales channels of Coca-Cola and Pepsi throughout North America, "Pulse" energy drinks and their accompanying functional chewing gum and energy bars have performed very strongly in the North American market.

Sales have been climbing steadily each week.

Especially in bars, universities, gyms, and the long-haul transportation industry, the repurchase rate is very high.

At the end of the report, Ling Peiyi included a suggestion: given the rapid growth and long-term demand in the North American market, she recommended acquiring a small to medium-sized food and beverage factory in North America, mainly for the production of the core concentrate of "Pulse" and solid products such as chewing gum and energy bars.

The benefits of doing this are obvious: it can greatly reduce the huge logistics costs and tariffs of transporting finished products and enable a faster response to changes in market demand.

More importantly, it can serve as a backup and strategic guarantee for the bottling capacity of Coca-Cola and Pepsi, preventing the company from being held hostage by others in case of unexpected situations during cooperation.

Chen Bingwen read it carefully twice and felt that Ling Peiyi's suggestion was very feasible and necessary.

Although we are currently in a honeymoon period with both companies and they are very cooperative, there are no permanent friends in the business world.

Having its own production base is not only an important part of ensuring supply chain security, but it can also become a significant advantage in competing with Coca-Cola and Pepsi in the future.

He picked up the phone and dialed an overseas number to Los Angeles.

The call connected quickly, and Ling Peiyi's voice came through: "Mr. Chen?"

"Director Ling, I've read the report from North America."

Excellent results, thank you for your hard work.

Chen Bingwen affirmed this first.

"Thank you, Mr. Chen. This is the result of the team's joint efforts."

"I think your suggestion at the end of the report about acquiring a local factory is very feasible and a necessary precautionary measure."

After a brief chat about sales, Chen Bingwen got to the point, saying, "You can start looking for suitable targets within the United States."

Ideally, the location should be in the central region, allowing it to reach both the east and west coasts and minimize logistics costs.

“Okay, I will focus on the Midwest region to see if there are any suitable acquisition targets for us.” Ling Peiyi noted it down.

After discussing the factory acquisition, Chen Bingwen recalled another important matter concerning raw materials.

"By the way, Director Ling, there's one more thing. Could you please take a look at the production technology and main suppliers of high fructose corn syrup?"

Ling Peiyi on the other end of the phone paused slightly, clearly unfamiliar with the term: "High-fructose corn syrup?"

“Yes,” Chen Bingwen explained, “It’s one of the main sweeteners used in beverages.”

Currently, the sugar we and Coca-Cola use are all purchased from sugar factories or specialized companies.

International raw sugar prices are greatly affected by oil price fluctuations and the policies of sugar-producing countries, resulting in drastic price volatility.

Although we did some futures hedging, that was only a short-term measure and didn't address the root cause.

He paused, letting Ling Peiyi process the information, before continuing, "To maintain long-term and stable control over costs and product quality, one must have their own core raw material sources, or at least a stable and competitive supply channel."

High-fructose corn syrup is made from corn. The United States is the world's largest corn producer, with a stable supply of raw materials at low prices.

I understand that enzymatic conversion technology in this area seems to have made breakthroughs in recent years. If the technology is mature and commercialized on a large scale, we can introduce the technology and even add production lines to our acquired factories to produce it ourselves in the future.

Only in this way can we fundamentally seize the initiative and not be subject to international sugar prices.

Ling Peiyi now fully understood Chen Bingwen's profound intentions: "I understand, Mr. Chen."

This is not just about buying raw materials, but about extending upstream in the industrial chain and controlling core links.

I will focus my investigation on this aspect to see if the technology is mature and reliable.

"That's right. Knowing yourself and your enemy is the key to victory in every battle."

Let's get a clear picture of the situation first. We don't necessarily have to act immediately, but we need to have a strong position.

Chen Bingwen affirmed.

Despite all this talk, Chen Bingwen knew how much of a storm and health controversy high-fructose corn syrup would cause in the coming decades.

He knew that at this moment, high-fructose corn syrup in North America was on the eve of commercial explosion.

Thanks to breakthroughs in enzyme immobilization technology, especially the large-scale industrial application of glucose isomerase, it has become possible to efficiently convert inexpensive glucose in corn starch into sweeter fructose, significantly reducing costs.

As the world's largest corn producer, the United States has an almost unlimited supply of cheap raw materials.

Before long, high-fructose corn syrup liquor will become a major alternative to sucrose in carbonated beverages and the food industry.

"Okay, Mr. Chen. I've noted them down. I'll get started on these two things as soon as possible."

"Thank you for your hard work. Let's keep in touch."

(End of this chapter)