Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 218 Undercurrents (Seeking monthly votes, recommendations, and subscriptions!)
However, this involves the use of such a large amount of funds.

Chen Bingwen still needed to inform Fang Wenshan.

After all, as the CFO, Vincent Fang needs to coordinate the company's funds.

He pressed the intercom button: "Ali, please ask Director Fang to come over."

A few minutes later, Vincent Fang walked into the office: "Mr. Chen."

"Sit down." Chen Bingwen gestured for him to sit down. "I've invited you here for two main reasons."

The first thing is that Xie Jianming will be using 200 million yuan to trade gold. You need to coordinate with the finance department to ensure smooth fund allocation, while also monitoring risks. I need to know the daily positions and profit/loss status immediately.

Chen Bingwen's words sent a chill down Fang Wenshan's spine.

Investing HK$200 million in gold?
This is a significant move, utilizing nearly 40% of the company's currently available cash reserves.

The gold market is highly volatile. Although Mr. Chen's judgments are usually accurate, such a large investment carries considerable risk.

As the CFO, he must ensure the safety margin of funds.

"Mr. Chen, two hundred million is no small sum," Fang Wenshan reminded him. "The gold market is greatly affected by the international situation and is extremely volatile."

Chen Bingwen glanced at Fang Wenshan and understood that his concerns stemmed from his duty.

I understand your concerns.

The core of this operation is trend investing, not short-term speculation.

Xie Jianming will build his position in batches, keeping the initial leverage below two times.

The stop-loss line is set at 15% of the total capital. Once it is triggered, the position will be closed unconditionally.

We shouldn't be overly sensitive to daily fluctuations; what I need to look at is the medium- to long-term trend.

Fund security is the bottom line; you are responsible for closely monitoring the account and compliance procedures.

Hearing that there were clear stop-loss lines and risk control measures, Fang Wenshan felt somewhat relieved.

"Understood, Mr. Chen. I will ensure proper fund transfers and risk monitoring."

"Secondly," Chen Bingwen continued, "I've agreed in principle to the renovation plan for Watsons to coordinate with Ma Shimin, and I'm asking him to get things moving as soon as possible."

The consolidation of the Hong Kong Island stores requires funding. Could you coordinate efforts to prioritize their initial needs?

“Ma Shimin just had a preliminary discussion with me. His plan to renovate Watsons is very ambitious, and the initial funding requirements are indeed considerable, but it is still within a controllable range,” Fang Wenshan replied.

He also realized that Ma Shimin was a man of action and ambition.

If Watsons plays this game well, it has huge potential for the future, but the initial investment and risks also exist.

"Yes. The company seems to have a lot of funds right now, but in reality, it's still not enough. As the CFO, you need to make sure every penny is spent efficiently."

If this gold investment succeeds, it will give us valuable breathing room and more ammunition.

Chen Bingwen concluded.

While Chen Bingwen was making various plans, on the other side of the world, in a conference room at the Coca-Cola headquarters in Atlanta, USA, a meeting with a slightly tense atmosphere was underway.

The meeting was chaired by Robert Jones, Senior Vice President of Coca-Cola's International Business Unit.

Several market analysis reports were spread out in front of him.

"Gentlemen, we may need to reassess the 'functional beverage' segment."

Jones said with a serious expression, "Especially the 'Pulse' brand from Asia, particularly Hong Kong."

As he spoke, he gestured to his assistant to project some market sales data onto the screen as a slideshow.

"According to the latest monitoring from the marketing department, after 'Pulse' was introduced into our channels for large-scale sales, although its overall volume is still small compared to our Coca-Cola, its growth curve is very rapid."

Moreover, the repurchase rate is surprisingly high.

A brand management manager interjected: "Robert, I know this 'Pulse'."

But it looks more like a slightly medicinal sugar water, its taste is completely different from our carbonated drinks, and its positioning is also different. Does it really pose a threat?

“Whether it’s a threat or not, we can’t just look at the present.” Robert Jones shook his head. “The key is the market trend and the Chen Ji Food Company behind it.”

They were clever; they traded a patented bottle cap technology for access to our and Pepsi channels.

In retrospect, their products are excellent.

This "Pulse" energy drink contains caffeine, taurine, B vitamins, and electrolytes, and claims to quickly replenish energy and refresh the mind.

Its success lies in its precise targeting of a niche market that we had overlooked: consumers who needed an instant energy boost but were tired of carbonated drinks.

If this market is educated, its size could be considerable.

A senior vice president shrugged dismissively, "Aren't you being overly sensitive? This is probably just a short-lived marketing effect."

“I thought so at first,” Robert Jones said, as his assistant switched the slide to show another set of data. “Look, this is the sales data for its complementary functional gum and energy bars in the convenience store system, which is also climbing rapidly.”

He paused, looked around at everyone, and said, “I propose that the company immediately launch an energy drink research and development project to secretly develop our own energy drink formula.”

We may not launch it to the market immediately, but we must have technological reserves and product contingency plans.

Meanwhile, the marketing department strengthened its tracking and research on "Pulse," analyzing its ingredients, marketing strategies, and user profiles.

Robert Jones caused a brief silence in the meeting room.

A moment later, another executive spoke up: "Robert, have you considered directly acquiring Chen's Foods?"

“The timing of the acquisition may be too late,” Robert Jones shook his head. “Based on the limited information available, Chenji Foods is not a publicly listed company, and its shareholding structure appears to be highly concentrated.”

Moreover, they have just completed a major acquisition in Hong Kong Island, have ample funds, and have considerable ambitions.

I believe a more realistic strategy is to accelerate the development of our own products, while also focusing on distribution channels.
We can reassess the terms of our cooperation with them. While we can't directly tear up the agreement, I think we have absolute say in shelf display and the allocation of promotional resources. After all, compared to the vast Coca-Cola empire, Chen Ji and its "Pulse" are currently just insignificant ants.

If you want to get a feel for it, it's quite simple.

Coincidentally, similar discussions were taking place at PepsiCo's headquarters in New York State.

Pepsi executives also noticed the rise of "Pulse" and the potential market it represented.

Their decision-making process is strikingly similar to Coca-Cola's: on the one hand, they explore the possibility of cooperation or acquisition, and on the other hand, they secretly launch the research and development of their own products.

Although the two giants reacted at different speeds and with different levels of importance, Chenji and "Pulse" have indeed quietly entered their field of vision.

Beneath the calm surface of the sea, undercurrents began to surge.

Luohu Port.

Gao Zhenhai and Ling Peiyi walked out of the border with the flow of people.

A wave of heat, mixed with the smell of dust, hit me, a stark contrast to the cool, constant temperature of the air-conditioned rooms on Hong Kong Island.

Before you are vast stretches of undeveloped farmland and scattered low-rise buildings, while in the distance you can see construction sites underway, with scaffolding everywhere.

The road was a compacted dirt road, and cars would kick up a cloud of dust as they drove by.

People mostly dressed simply and in monotonous colors. Bicycles were the main mode of transportation, with occasional green jeeps or Shanghai-brand cars passing by.

Ling Peiyi frowned subconsciously and gently covered her mouth and nose with a handkerchief.

She was used to the hustle and bustle and cleanliness of Hong Kong Island, and the scene before her was quite a shock.

Gao Zhenhai, on the other hand, remained calm. He frequently traveled to and from Dongguan and was more familiar with the situation there.

"Director Ling, this way. The people from the office should be waiting outside."

Sure enough, a young man wearing a white polyester shirt and glasses was holding up a sign that read, "Welcome to the leaders of Hong Kong Island Chan Kee Company."

A black, old-fashioned Shanghai-brand sedan was parked next to him.

"Hello! Are you Manager Gao and Director Ling? I'm Zhang from the Shenzhen office of China Resources Company."

The young people saw them and quickly came to greet them, their attitude respectful yet somewhat nervous.

"I am Gao Zhenhai, and this is Director Ling Peiyi."

Gao Zhenhai shook hands with him and said politely, "Thank you for your hard work, Xiao Zhang."

"It's no trouble at all! You two must be tired from your journey, please get in the car."

As he spoke, Xiao Zhang opened the back door of the car.

The interior was cramped, and the seats were made of velvet, emitting a faint smell of tobacco and leather.

The car drove onto the bumpy dirt road at a slow speed.

As Xiao Zhang drove, he introduced, "Manager Gao, Director Ling, let's go to the office to settle in first."

Regarding the trial sale of bottled sugar water, we have received instructions from our superiors and are currently going through the procedures.

Gao Zhenhai nodded: "Thank you for your hard work."

"The purpose of our visit is to finalize the specific details."

Ling Peiyi looked at the scene outside the window and pondered to herself.

The consumption level in mainland China is vastly different from that in Hong Kong.

How to price?

How to promote it?

How should distribution channels be managed?

These are all entirely new topics.

Without understanding these circumstances, blindly expanding sales channels will only lead to utter failure.

Thinking of this, she asked, "Xiao Zhang, what kinds of drinks do the locals usually drink? And how much do they cost?"

Xiao Zhang glanced at Ling Peiyi in the rearview mirror and replied, "Director Ling, people here mainly drink soft drinks, like Beibingyang from Yanjing and Zheng Guanghe from Shanghai. Most cities have their own local soft drink factories."

A bottle costs about a few cents to a couple of dimes.

Imported beverages were rare and expensive; they were mainly purchased with foreign exchange certificates at Friendship Stores and other establishments catering to foreigners.

A few cents to a dime or two?
This price immediately chilled Ling Peiyi's heart.

The cheapest bottled sweet soup from Chan Kee costs more than HK$1 on Hong Kong Island, which is a huge price difference.

She realized that cost control was the top priority here, and she had to resolutely implement Chen Sheng's instruction to "source raw materials locally," otherwise she would not be able to sell anything.

The car stopped in front of a simple three-story building with a sign that read "China Resources Company Shenzhen Office" hanging at the entrance.

Xiao Zhang helped carry the luggage: "Dear leaders, the room is on the second floor and the conditions are rather basic. Please bear with us."

We've arranged to meet with colleagues from the sugar and wine company this afternoon to discuss the sugar supply.

Gao Zhenhai and Ling Peiyi exchanged a glance, both seeing a sense of urgency in each other's eyes.

"Okay, let's start work this afternoon," Gao Zhenhai said.

Time waits for no one; we must make progress as soon as possible.

(End of this chapter)