Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 217 Gold (Seeking monthly votes, recommendations, and subscriptions!)
Bottled sugar water entering the mainland sounds simple, but there's a lot of knowledge involved in making it.

Currently, the purchasing power of ordinary people in mainland China is far from comparable to that of people in Hong Kong.

If measured by the costs and pricing of Hong Kong Island, this business is simply unworkable.

How much money do ordinary people in mainland China earn in a month?
If a bottle of sweet soup made in Hong Kong were sold there, the price would probably be higher than someone's daily wage. Who would buy it?

Therefore, Chen Bingwen's instructions to Gao Zhenhai were very clear:

Raw materials are sourced locally.

Sugar, fruit, and bottles should be sourced within the mainland as much as possible.

Only in this way can costs be reduced and prices made competitive.

Otherwise, let alone comparing it to a behemoth like Coca-Cola, even local soda factories could crush it.

It's not easy to get started, but this step is necessary.

The mainland market is a grand strategy; the moves we're making now are for the future, ten or twenty years from now.

He wasn't interested in how much money he could make right now, but rather in securing a position, expanding distribution channels, and getting the name "Chen Ji" into the minds of ordinary people.

When ordinary people have money in the future, his products will be the first thing they think of.

This is a long-term investment; it's a bet on the future.

Gao Zhenhai asked, "Brother Sheng, there's something else."

There is a shortage of foreign exchange in mainland China right now. If we use Hong Kong dollars for settlement, many companies will not be able to make payments.

Can you accept RMB settlement?

“Of course,” Chen Bingwen nodded. “The RMB received will be used to purchase raw materials in the mainland, forming a cycle.”

You should handle this flexibly.

At this moment, Ling Peiyi said, "Mr. Chen, since you want me to be in charge of the mainland market, I would like to go there with Ah Hai."

When it comes to channel development and advertising, you need to personally understand the actual situation to have a clear picture.

With Li Ming keeping an eye on things in North America, nothing will go wrong.

Chen Bingwen glanced at her and knew that what she said made sense.

Ling Pei-yi is highly capable, and with Gao Zhen-hai's cooperation, the start will be much smoother.

“Okay. You can go with Ahai.” He paused, then added, “The situation is different on the mainland, so we need to be more flexible in our approach.”

“I know, Mr. Chen.”

Ling Peiyi nodded in agreement.

On Monday morning, as soon as Chen Bingwen entered his office on the top floor of the Weiye Building, he saw Ma Shimin already waiting outside, holding a thick document in his hand.

"Good morning, Mr. Chen." Ma Shimin greeted him with a bright smile.

"Good morning, Simon. Come in."

Chen Bingwen gestured for him to follow him into the office.

Sitting down behind his desk, Chen Bingwen glanced at the documents Ma Shimin had placed on the table and asked, "Did you bring the things?"

"Brought it."

Ma Shimin pushed the document in front of Chen Bingwen, saying, "This is my preliminary plan for the reorganization of Watsons and the expansion into the Southeast Asian market. Please take a look."

Chen Bingwen picked up the document but didn't open it immediately. Instead, he looked at Ma Shimin and said, "First, briefly explain your thought process."

“Okay, Mr. Chan.” Ma Shimin said confidently, “My core idea is to ‘consolidate Hong Kong, radiate outwards to Southeast Asia, and set an eye on the world.’”

"The first step is to prioritize the integration of the 72 Watsons stores on Hong Kong Island."

We will carry out standardization reforms, unify our image, and optimize our product structure.

Increase shelf space for cosmetics, personal care products, and Chen Ji beverages to enhance the shopping experience.

"The second step is to use Hong Kong Island as a model and replicate it in Southeast Asia."

Singapore and Malaysia are the top choices, as these two places have large Chinese populations, similar consumption habits, and a strong economic foundation.

The model primarily relies on brand licensing and joint ventures, employing a light-asset operation to quickly seize market share.

“The third step,” Ma Shimin paused, a sharp glint in his eyes, “is that my preliminary research has revealed that the Thai market has great potential, the economy is developing rapidly, and the tourism industry is booming, but there are currently no large-scale chain pharmacies or personal care brands.”

I suggest looking for opportunities to directly acquire one or two promising local small and medium-sized chain enterprises, transform them using our brand and management, quickly penetrate the market, and establish a foothold.

As Chen Bingwen listened, he quickly browsed through the financial forecasts and expansion plans in the proposal.

Ma Shimin's thinking is clear and radical, yet retains sufficient flexibility. In particular, his proposed expansion strategy of first consolidating the foundation and then radiating outwards, as well as the combination of multiple models, ensures both speed and control of risks, which coincides with his own ideas.

"The plan is well done and very comprehensive." Chen Bingwen closed the document and made the decision directly, "Let's proceed with this approach."

You can begin the integration within Hong Kong Island immediately. If you need any support, just contact Director Fang.

In Southeast Asia, you should first make initial contact and gather information. You can contact Mr. Li Mingzhe, the manager of Chen Ji Foods' Singapore branch, and utilize existing channel resources to implement the plan as soon as possible.

"You must begin the integration within Hong Kong Island immediately."

"Understood! Thank you, Mr. Chen. I'll get started right away."

Ma Shimin's face lit up with excitement as he picked up the proposal and strode away.

After seeing Ma Shimin off, Chen Bingwen picked up the day's Hong Kong Economic Journal, which his secretary Ali had placed on the table, and turned to the international edition. His brows gradually furrowed.

The international edition is filled with all sorts of disturbing news.

As the two largest hegemonic powers in the world.

The Russian military is increasingly active on the Afghan border, escalating conflicts with local armed groups.

Some analysts have even speculated in their columns that the polar bear (Russia) might soon directly intervene militarily in the Afghan situation. Meanwhile, the bald eagle (US) and Persia (Africa) are also embroiled in a bitter dispute over oil, with relations plummeting to a freezing point.

The adjacent financial section reported that due to the continued tension in the Middle East and market concerns about potential disruptions to oil supplies, international oil prices have soared to over $30 per barrel, pushing up global inflation expectations.

Chen Bingwen put down the newspaper and fell into deep thought.

He knew very well that these geopolitical upheavals were often accompanied by intense risk aversion in the market.

Gold, as the ultimate safe-haven asset, is about to embark on a magnificent upward trend in price.

What we are seeing now is just the prelude to the main event, with the polar bear officially sending troops into Afghanistan and the bald eagle and Persia experiencing a hostage crisis.

The price of gold surged from over $200 per ounce to $850 per ounce.

It wasn't until January 21, 1980, when the US president intervened and stated that he would spare no effort to maintain America's position in the world, that the price of gold fell by $50 at the close of trading that day.

The following day, January 22, gold prices plummeted by $145.

Thus ended the first major bull market in gold in modern times, which lasted for 12 years.

金价从1968年的35美元涨到1980年的850美元，12年间，每年有30%的获利率。

This surge in gold prices presents a golden opportunity for him, who is currently raising funds to prepare for a final showdown with Li Jiacheng.

When an opportunity arises, it must be seized.

He silently calculated his financial situation: the previous acquisition of Hutchison Whampoa shares and Qingzhou Yingni had cost a huge amount of money. Although the sale of some Qingzhou Yingni shares had brought back more than HK$100 million, plus the original syndicated loans and profits, he currently had about HK$500 million in cash at his disposal.

This amount of money may seem substantial, but it will still be insufficient to cope with a potential escalation of the Hutchison Whampoa takeover battle, as well as to support expansion in the North American and mainland Chinese markets.

He needs to make his money generate more money faster.

"This is a rare opportunity, we must seize it!" Chen Bingwen made up his mind.

Having made up his mind, he picked up the internal phone and pressed the call button: "Ali, please ask Xie Jianming, the investment manager, to come over."

A few minutes later, Xie Jianming, the investment department manager, came to his office.

"Chen Sheng, you were looking for me?"

Chen Bingwen pushed the international and financial editions of the Hong Kong Economic Journal on the table in front of him: "What's your opinion on the recent international situation?"

After quickly glancing through the text, Xie Jianming's expression turned serious: "Things are not peaceful here, Mr. Chen."

The Middle East and West Asia are like a powder keg; oil prices have soared, and market risk aversion is clearly rising.

"How long do you think this feeling will last?"

Which assets will be most affected?

Chen Bingwen examined the Dao.

Xie Jianming thought for a moment and cautiously replied, "It doesn't seem like it can be calmed down in the short term."

If the situation deteriorates further, or even if local conflicts break out, gold will likely be the biggest beneficiary.

Historically, every geopolitical crisis and oil crisis has been accompanied by a significant rise in gold prices.

Chen Bingwen nodded, agreeing with his assessment, saying, "That's the same as my opinion."

The market is still in the digestion and anticipation phase, which is the perfect time to position oneself.

At this point, he decisively arranged, "We still have HK$500 million in cash at our disposal."

I've decided to allocate 200 million specifically for establishing a long position in gold.

Xie Jianming felt a chill run down his spine; two hundred million Hong Kong dollars was no small sum.

"Mr. Chen, how exactly will it be done? Through the London gold market, or through the Hong Kong Gold and Silver Exchange?"

What leverage ratio should be maintained?

"Primarily through the London gold market, using a combination of futures and spot trading."

"Regarding the leverage ratio," Chen Bingwen pondered for a moment, "it shouldn't be too high initially, keep it below two times, and first establish a basic position."

We will decide whether to increase our investment based on how the market develops.

Remember, our goal is to leverage this trend to raise funds for the company, not to gamble. Our primary objective is risk management.

"Understood, Mr. Chen." Xie Jianming immediately understood the intention. "I will personally oversee the process, select contracts with good liquidity, and build positions in batches to smooth out costs as much as possible."

"Very good. Go ahead and make the plan more detailed. I need to see a detailed position building plan and risk assessment report by tomorrow morning."

Chen Bingwen waved his hand.

"Yes!" Xie Jianming accepted the order and left the office.

After Xie Jianming left, the office fell silent again.

Chen Bingwen's gaze swept over the newspaper spread out on the table again.

With international oil prices rising above $30 and geopolitical risks escalating, all of this points to one clear direction—gold's safe-haven properties will become more prominent.

He invested HK$200 million, with leverage controlled at 2 times, which is already a relatively conservative strategy.

He knew that the market never played by the rules, and although his memories from his past life helped him, the volatility during the rise in gold prices was enough to swallow up any speculator who wasn't careful enough.

Of the 500 million, 200 million will be invested in gold, and the remaining 300 million will be used to cope with the Hutchison Whampoa takeover battle and to support the business of Qingzhou Yingni in North America, Southeast Asia, and mainland China.

This situation seems a bit tense no matter how you look at it.

The gold trade presents both risks and opportunities.

But he believed in his own judgment and even more in the general trend of history.

This gold bull market, driven by both geopolitical crisis and inflation, has only just begun.

(End of this chapter)