Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 223 Mediation (Seeking monthly votes, recommendations, and subscriptions!)
In August, the international gold market experienced a dramatic shift.

Driven by persistently high inflation data in the United States, market risk aversion has surged, leading to a large influx of funds into gold.

London gold prices surged like a runaway horse, soaring from about $258 per ounce when Chen Bingwen first established his position, breaking through the $300 mark in less than half a month, reaching a high of $320.

Weiye Building.

Investment manager Xie Jianming strode into Chen Bingwen's office with the latest transaction records in hand, his face beaming with barely suppressed excitement.

"Mr. Chen, our long gold contracts, based on the current market price, have already generated a floating profit of over 60 million Hong Kong dollars!"

Chen Bingwen took the report and quickly scanned the strings of numbers.

Even though he had expected it, the increase still made him slightly excited.

This huge unrealized profit greatly alleviated the financial pressure brought about by operating on multiple fronts.

"Ah."

He put down the report, his expression calm. "It's precisely at times like these that we need to manage our funds carefully. The market is highly volatile and could pull back at any time, so we need to monitor it closely. We've raised our stop-loss level to $280."

No one is allowed to increase or decrease their position without my instructions.

"Understood!" Xie Jianming nodded emphatically and left.

After Xie Jianming left, Chen Bingwen breathed a slight sigh of relief.

A profit of HK$60 million is no small amount; it is almost equivalent to the profits of Chan Kee Foods over the previous few months.

But he also knew that the futures market was highly volatile, and the money was only on paper now. As long as the position wasn't closed out, the money wouldn't be truly secured.

However, barring any major ripple effects, he's guaranteed to profit from this once-in-decades gold bull market.

At that moment, the intercom light on the desk came on, and the secretary Ali's voice came through: "Mr. Chen, Director Fang and Professor Zhou Zhiyuan from the R&D center have arrived."

"Invite them in."

The office door opened again, and Zhou Zhiyuan and Fang Wenshan walked in together, each holding a folder and a few small sample bottles.

"Chen Sheng."

The two greeted each other at the same time.

"Professor Zhou, thank you for your hard work."

Chen Bingwen gestured for them to sit down.

"Mr. Chen, the preliminary compatibility test of the high fructose corn syrup sample has been completed."

Zhou Zhiyuan got straight to the point, placing the folder and sample bottles on the table. "These are detailed test reports and samples from trial production according to the new formula."

Chen Bingwen picked up a sample bottle containing a clear liquid.

He opened it and smelled it; the scent was not much different from the original Pulse.

"How does the taste compare?" he asked the most crucial question.

Zhou Zhiyuan adjusted his glasses and answered objectively, "To be honest, compared to the version made with pure cane sugar, you can feel a very subtle difference on the tip of your tongue."

The sweetness comes on faster, but the aftertaste is shorter, lacking the rich 'depth' of cane sugar.

However, unless compared side-by-side, most ordinary consumers probably wouldn't be able to taste a significant difference.

He paused, then added, "If HFCS-55 completely replaces sucrose, the cost of raw materials can be reduced by 35% to 38%."

If we purchase in large quantities, the price can be even lower.

After listening to Zhou Zhiyuan's introduction, Chen Bingwen unscrewed the cap of the sample bottle and took a sip.

“There is a slight difference.” He carefully tasted it and put down the bottle. “But it’s within acceptable limits.”

Since the taste difference is minimal, the cost advantage is significant, and the market demands a potent product.

He looked at Zhou Zhiyuan and said, "Professor Zhou, immediately adjust the formula of the product for the North American market."

All of our energy drinks, energy gums, and energy bars use high-fructose corn syrup instead of sucrose.

It's not just about replacement; it's about designing an upgraded version of the Pulse energy drink, with 12-13 grams of sugar per 100 ml and 80 mg of caffeine per 250 ml.

Chen Bingwen's decision surprised Zhou Zhiyuan: "Mr. Chen, the sugar and caffeine content have almost doubled?"

Could it be?

"With high inflation in North America and consumers under pressure, there is a stronger demand for the 'cheap pleasure' brought by high sugar and high caffeine."

Chen Bingwen explained, "We need to follow the trend and clearly tell consumers that this is the most energizing beverage on the market, bar none."

He did this because, in a market environment of high inflation and consumers seeking immediate comfort and strong stimulation, being the first to establish a brand image of "most effective" and "most invigorating" can create a solid competitive advantage.

When consumers think about needing a quick energy boost and a refreshment, the first thing that comes to mind is "Pulse Thunder." This cognitive advantage is difficult for competitors to shake in the short term, allowing Pulse energy drinks to gain a commanding position in potential future competition.

After discussing the formula adjustments, Chen Bingwen said to Fang Wenshan, "Director Fang, the new product line will be named the 'Pulsating Thunder' series."

The packaging has been redesigned, using a narrow can with a silver base and a striking lightning bolt logo to clearly distinguish it from the original Pulse.

The price can be raised appropriately to highlight its 'top-tier' positioning.

"Director Ling Peiyi has been expanding sales channels in mainland China recently. Please take charge of this and get it under control."

“Okay!” Fang Wenshan quickly wrote it down. “I will notify the North American team and design company immediately.”

“There’s one more thing,” Chen Bingwen handed Fang Wenshan a piece of draft paper with a drawing of two bulls, adding, “Have Li Ming register ‘Red Bull’ and all possible similar beverage trademarks and designs with elements such as energy, bulls, wings, and lightning bolts in North America and Europe as soon as possible. Leave none behind.”

Although he didn't quite understand the origin of the name "Red Bull," Vincent Fang nodded without hesitation: "Okay, Mr. Chen."

"Professor Zhou, I'm entrusting the stability of the mass production formula to you," Chen Bingwen said to Zhou Zhiyuan at the end.

"Don't worry, Mr. Chen, the lab data is very stable. I'll keep an eye on the production line and make adjustments," Zhou Zhiyuan assured him.

That night, a train from Guangzhou to Yanjing roared northward.

In the connecting area of ​​an ordinary hard sleeper carriage, Gao Zhenhai leaned against the door, watching the dark fields rushing past the window, dotted only by scattered lights.

Standing next to him were Xiao Zhang from the China Resources office and a section chief from the sugar and wine company.

After nearly a month of hard work, the first batch of 30,000 bottles of Chenji bottled sugar water, supplied to Yanjing Friendship Store and foreign-related hotels, has finally completed production, inspection and customs clearance procedures. It is now being loaded into wooden crates in the baggage car and is heading to its destination with this train.

"Manager Gao, don't worry, all the paperwork is in order. When we arrive at Yanjing Station, people from the Sugar and Wine Company will pick up the truck and transport it directly to the warehouse."

Section Chief Xiang from the sugar and wine company handed him a cigarette and said...

Gao Zhenhai waved his hand: "Thank you, Section Chief Xiang. I don't smoke. We really owe you a lot for your help this time. Otherwise, we would have spent a month running around handling all these procedures ourselves."

Xiao Zhang smiled and said, "Manager Gao, you're too kind. This is just part of our job!"

But to be honest, your sweet soup tastes really good. It's sweeter and more natural than Arctic Ocean soda, and the fruit flavor is also very strong.

At this price, I doubt many ordinary people can afford it.

Gao Zhenhai smiled and nodded, without saying anything.

He knew in his heart that, just as Chen Bingwen had said, this first batch of goods was mainly symbolic, a stepping stone to opening up the mainland market.

Although costs were controlled as much as possible, the cost of reaching Yanjing was still not low when transportation and tariffs were included. The main target customers were foreign guests with foreign exchange certificates and a few people who had become rich first.

Compared to the familiar business environment on Hong Kong Island, everything on the mainland is new and requires exploration and adaptation.

But he believed in Brother Sheng's judgment that this land had unlimited potential.

Meanwhile, in her Guangzhou office, Ling Peiyi was looking at maps and documents, planning the next steps for channel expansion.

Beijing was just the first stop; Shanghai, Guangzhou, and Tianjin—these major cities, with their foreign visitors and high-end consumer venues—were all her targets.

She knew that the month she spent in mainland China had taught her a valuable lesson.

In doing business in mainland China, policy is key, connections are the bridge, and product quality is the foundation. She must proceed cautiously step by step to complete the tasks assigned by Chen Bingwen, namely, opening up channels and establishing a brand image.

The next morning, after arriving at his office, Chen Bingwen habitually picked up the newspaper that Ali had prepared and began to read it.

A seemingly insignificant report in the financial section of the Sing Tao Daily caught his attention: "The British parent company of RTV (Asia Satellite TV) is suspected of intending to sell part of its shares."

The station has experienced declining viewership and widening losses in recent years, requiring capital injection to stay afloat.

Rediffusion Television?
Chen Bingwen tapped the message with his finger, a thought flashing through his mind.

This television station has experienced declining ratings and poor management in recent years, but it still possesses a free-to-air television license and a wide audience reach.

In the coming information age, the value of media channels cannot be underestimated.

This might be an opportunity.

He noted down this information, intending to have Gu Yongxian investigate further.

Just as he put down the newspaper, the internal phone rang. He picked it up and Ali's voice came through: "Mr. Chen, Sir Yue-Kong Pao's secretary called to ask if you are free this Friday afternoon. Sir Pao would like to invite you to play a round of golf at Clearwater Bay Golf Club."

When Y.K. Pao took the initiative to invite him, it was clearly more than just a game of ball.

It seems the last conversation had an effect; the shipping magnate may have more specific matters to discuss.

After a moment's thought, Chen Bingwen said, "Reply to Sir Bao that I will be free on Friday afternoon and will definitely be there on time."

"Okay, Mr. Chen."

Friday afternoon, Clearwater Bay Golf Club.

The weather was lovely, sunny but not too hot.

When Chen Bingwen arrived, Bao Yugang was already practicing putting on the green.

He was wearing a simple polo shirt and trousers and looked to be in good spirits.

"Sir Bao, I'm sorry I'm late," Chen Bingwen said as he stepped forward.

Bao Yugang put down the putter and said with a smile, "It's not late, it's not late either, I just arrived."

The weather's nice today, perfect for stretching my muscles.

After exchanging a few pleasantries, the two got onto their electric carts and headed towards the first tee box.

For the first few holes, the two chatted about light topics: golf, the weather, and occasionally the current state of the shipping market.

Chen Bingwen knew in his heart that the real issue had not yet begun.

The fifth hole was a par-3.

Bao Yugang swung his golf club, as if casually mentioning, "Mr. Chen, recently, there have been many rumors circulating about your dispute with Li Jiacheng in Qingzhou Yingni and Hutchison Whampoa."

Chen Bingwen's heart skipped a beat; he knew it was time to get down to business.

His expression remained unchanged as he looked at the green ahead and said with a smile, "The business world is like a sports field; competition is normal."

I just wonder which version Bao Sheng heard?

Bao Yugang laughed heartily: "There are so many versions. Some say you are a formidable young man, managing to snatch a piece of fat meat from the tiger's mouth."

Some say that Li Jiacheng suffered a hidden loss this time and won't easily let it go.

"If you keep arguing like this, won't it create too much of a commotion?"

At this moment, Bao Yugang stepped onto the tee, adjusted his posture, and swung his club cleanly. The white ball drew a beautiful arc and landed steadily in the center of the green.

"Great shot!" Chen Bingwen exclaimed.

“I’m getting old, and my strength isn’t what it used to be.” Bao Yugang shook his head, stepped down, and looked at Chen Bingwen. “Mr. Chen, to be honest, this time Sir Michael Shen asked me to ask you what you think.”

Chen Bingwen walked up to the tee box, selecting his club as he said, "Sir Sir Michael Sandberg? What does he want to ask?"

"Both he and Li Jiacheng hope that this matter can be resolved peacefully."

After all, continuing this stalemate benefits no one.

Bao Yugang’s voice was calm, but his meaning was clear: “Shen Bi’s idea is that we can sit down and talk.”
For example, when HSBC disposes of its remaining Hutchison Whampoa shares, it could adopt a solution that benefits everyone.

Chen Bingwen took a deep breath, aimed, and swung.

The ball flew out and landed in the rough at the edge of the green.

He stepped down and looked at Bao Yugang: "Sir Bao, it's not that I want to fight for it."

That's just how the market works.

Whoever has the foresight and the ability will be able to seize the opportunity.

I acquired Qingzhou Yingni according to market rules, which was reasonable and legal.

As for Hutchison Whampoa, I hold shares. As a shareholder, it's perfectly normal for me to be concerned about the company's future development, isn't it?

“It’s normal, of course it’s normal.” Bao Yugang nodded and walked with him toward the electric scooter. “However, Mr. Chen, you are a young man with a bright future ahead of you.”

Sometimes taking a step back is not necessarily a bad thing.

Sir Michael Sandberg and HSBC, after all, are both very powerful.

Li Jiacheng has been operating in Hong Kong Island for many years and has a deep network of connections.

If you really go toe-to-toe with them, even if you win, the cost could be very high.

Chen Bingwen understood the deeper meaning behind the words; it was both a reminder and a little bit of pressure.

“Sir Bao, I understand you mean well.” Chen Bingwen looked ahead and said seriously, “I never want to confront anyone head-on.”

In my business dealings, I believe in win-win cooperation.

If there is a real opportunity to sit down and talk, I will not refuse.

But the premise is how to cooperate and achieve a win-win situation. If I'm asked to unilaterally sacrifice my interests, well…

Chen Bingwen didn't finish his sentence, but his meaning was already very clear.

Bao Yugang glanced at him, his face showing admiration: "Young man, you have both courage and principles."

Okay! I understand what you mean.

I will explain it to Sim Bi.

I'll have my secretary contact you about the specific arrangements.

"Thank you, Sir John Paul."

Chen Bingwen knew that this tentative mediation had come to a temporary end.

The real negotiations may be yet to come.

However, he also clearly conveyed his position to the other party through Bao Yugang.

After finishing their game, the two had a quick cup of tea at the clubhouse before parting ways.

The fact that Bao Yugang stepped forward indicates that HSBC and Li Ka-shing have placed him in a position that requires serious attention.

This is a good thing, but it also means that the ensuing game will be more complicated.

He needs to think carefully about how to maximize his own interests in potential negotiations, or how to use this opportunity to set up a new plan.

"Mr. Chen, shall we go straight back to the company?" Zhao Gang asked.

"Yes." Chen Bingwen nodded.

(End of this chapter)