Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 236 Family Matters (5K views - Requesting monthly votes, recommendations, and subscriptions!)
The two announcements from Qingzhou Yingni were like two bombs, instantly igniting the Hong Kong capital market.

The Hong Kong Economic Journal's financial section featured a striking headline: "Qingzhou and Yingni launch two simultaneous attacks; Chen Bingwen makes another significant move in his capital game!"

The analysis provides a detailed perspective on the impact of Qingzhou Yingni's rights issue and asset sale, concluding that Chen Bingwen intends to recoup substantial funds and completely transform the company into a real estate and investment holding platform, and is optimistic about Qingzhou Yingni's future prospects.

The Sing Tao Daily commented: "Is China Resources' massive investment in the cement business aimed at Liu Bang?"

The mainland's thirst for infrastructure development may give rise to new industry giants.

The article links China Resources' acquisition to the huge infrastructure construction needs in mainland China, arguing that the deal has profound strategic significance.

Oriental Daily News focused more on market reaction: "Retail investors are snapping up Qingzhou Yingni, and rights issues may become highly sought-after!"

The report described how, after the announcement, Qingzhou Yingni's stock price soared at the opening bell, with many retail investors queuing at brokerage firms to apply for subscriptions to the rights issue, and market sentiment was high.

The trading hall was bustling with noise.

The investors gathered around the price chart, discussing the matter animatedly.

"Chen Bingwen is amazing! He got rid of the cement business and cashed out nearly 500 million yuan!"

"With a 30% discount on the rights issue and underwriting by Citigroup and Goldman Sachs, it's a sure-fire way to make money! Quickly raise the funds to subscribe!"

"If China Resources is optimistic about it, it's bound to rise! Following Mr. Chen is the right choice!"

Some seasoned stock market investors offered a more sober analysis: "It seems Chen Bingwen is about to make a big move. With so much cash accumulating, his target is definitely a bigger prey..."

In some of the wealthy clubs in Central, well-informed tycoons and fund managers are also discussing this matter.

"Chen Bingwen played this move brilliantly; with one inflow and one outflow, his cash flow immediately became abundant."

"If China Resources is willing to pay this price, it seems that the demand for building materials in the mainland is really urgent."

"What do you think Chen Bingwen plans to invest in next with all this money he's raised?"
Li Jiacheng is probably going to get restless.

Meanwhile, in the office of HSBC's CEO, Sir Michael Sandberg, the atmosphere was somewhat somber.

"Sir Sir Benjamin Shen, let's not beat around the bush." ​​Li Jiacheng tried his best to suppress his anxiety and keep his tone calm. "Chen Bingwen now has a lot of money in his hands, and his target is obviously Hutchison Whampoa."

The remaining shares in HSBC have become his next target.

If we don't finalize the deal soon, things might get complicated.

Shen Bi put down his teacup and said seriously, "Mr. Li, I understand your concerns."

HSBC also hopes that Hutchison Whampoa's shareholding structure can be stabilized as soon as possible.

but"

He then changed the subject, saying, "Some directors on the board believe that Hutchison Whampoa's value may need to be reassessed in the current market environment."

Moreover, Mr. Chen Bingwen's demonstrated capabilities and his positive relationship with the mainland, particularly with China Resources, have led some board members to believe that introducing some competition might not necessarily be a bad thing for the future of HSBC and Hutchison Whampoa.

Shen Bi's words made Li Jiacheng's heart sink.

Sir Michael Sandberg's words revealed two things: first, HSBC might want to raise the price; second, HSBC's internal view of Chen Bingwen is changing, and they might even consider selling shares to him.

“Sir Sir Michael Sandberg,” Li Ka-shing sat up straight and said sincerely, “Cheung Kong has cooperated with HSBC for many years. Cheung Kong’s leadership of Hutchison Whampoa is in the best interests of HSBC and all shareholders, and this has never changed.”

Although Chen Bingwen has the funds, he lacks experience with conglomerates like Hutchison Whampoa, and his rash intervention would only cause chaos.

Regarding relations with the mainland," he paused, then continued, "Cheung Kong also values ​​cooperation with the mainland, as evidenced by the Tin Shui Wai project."

The HSBC board of directors is asked to have faith in Cheung Kong's sincerity and capabilities.

Shen Bi pondered for a moment and said, "Mr. Li, I will convey your words to the board of directors."

However, the final decision must adhere to business principles and the interests of all shareholders.

Okay, the board will discuss this matter again in a week.

I will do my best to make it happen at that time.

However, Mr. Li, you also need to prepare a contingency plan, because the situation is more complicated than before.

After leaving the HSBC building and getting into his car, Li Jiacheng's expression became even more unpleasant.

Shen Bi's attitude has clearly softened, and he no longer firmly supports him alone as before.

This struggle has become more complex and difficult than ever before.

He realized that a more powerful solution was needed to turn the situation around.

After Li Jiacheng left, Shen Bi also examined the current situation in his office.

On the table were an analysis report on the Qingzhou Yingni transaction and the latest financial briefings from Chen Bingwen and Li Jiacheng.

As HSBC's taipan, his core responsibility was to safeguard HSBC's interests.

The sale of Hutchison Whampoa shares was intended to raise funds and optimize the asset structure, but at a deeper level, it was to find a reliable and capable "partner" for HSBC's future in Hong Kong.

A Chinese-owned partner that can effectively manage Hutchison Whampoa, maintain a close alliance with HSBC, and play a special role in the context of the new era.

Li Jiacheng is a traditional and prudent choice. We have cooperated for many years and know him well. His cautious and down-to-earth style is in line with HSBC's consistent preferences.

However, the network of interests behind him is relatively fixed.

Chen Bingwen is a completely new variable.

His rapid rise and the boldness he has shown are astonishing, and his deal with China Resources further demonstrates his unique ability and channels for dealing with the mainland.

However, he is too young, his style is more sharp and aggressive, and his massive fund allocation and capital operation methods also make people feel a little uneasy.

He is a skilled strategist, but whether he can willingly and effectively fulfill the role HSBC expects remains to be seen and considered.

Introducing competition might force Li Jiacheng to offer a higher price, and it would also provide an opportunity to further test and assess Chen Bingwen's true intentions and controllability.

However, this move is quite risky. If not handled properly, it could backfire and cause HSBC to lose control of the situation.

HSBC needs agents in Hong Kong Island, "white gloves" that can deeply integrate into the local community and act as intermediaries for HSBC and even the broader interests of British capital.

Li Jiacheng has always been a qualified candidate.

But does Chen Bingwen possess this potential?

Is he "obedient" enough?
He needs to weigh the pros and cons more carefully and develop a clearer strategy before the next board meeting.

This is not just an equity transaction, but a bet on the future landscape.

After receiving instructions from Chen Bingwen, McLeish immediately booked the fastest flight to the United States.

During the more than ten-hour flight, he barely slept, constantly reviewing copies of the FDA inquiry letter sent by the North American team and the preliminary response materials compiled by Li Ming.

When the plane landed at New York's JFK Airport, it was early morning.

Despite her jet lag, Milis called Li Ming from a public phone booth at the airport.

"Simon, you've arrived?" Li Ming asked.

"Just landed. How's the situation?" Maris asked immediately.

“FDA officials came again yesterday and took away many samples and batch records.”

They requested that we submit a comprehensive ingredient safety report and all relevant technical documents within fourteen working days.

Several large supermarket chains have already inquired about the situation; although the product hasn't been removed from their shelves yet, they are quite concerned!

What about the distributors?

"Most distributors are still taking a wait-and-see approach, but they are also urging us to give a clear answer."

"Understood. I'll go directly to the office. Inform the core members of the North American team that there will be a meeting in an hour."

In addition, please compile all recent records of frictions between us and the Coca-Cola and Pepsi bottling plants, regardless of their magnitude, the more detailed the better.

An hour later, in the conference room of Chen Ji Foods' North American office, all the core members of Chen Ji Foods' North American team were present.

Without wasting any words, Melis wrote down a few keywords on the whiteboard: FDA, channels, public opinion, and competitors.

"Everyone is aware of the situation."

This is not a simple technical inquiry; it is a business war.

Our opponents are exploiting the rules to attack us.

Now, we need to fight a counterattack.

Mai Lisi glanced at everyone and said, "Manager Li, you are responsible for stabilizing the channels."

We immediately sent a formal letter to all our channel partners, informing them that we are actively and fully cooperating with the FDA's review, emphasizing our absolute confidence in the safety of our products, and committing to assume all liability arising from compliance issues.

“Okay, Simon.” Li Ming nodded.

"The technical team is fully cooperating with Professor Zhou Zhiyuan's team to prepare all the technical documents required by the FDA."

The data must be solid, the format professional, and there can be no omissions. Remember,
This isn't about begging them, it's about proving to them that we're right.

"Understood!" "Public relations team, draft a statement immediately. It should have three key points: First, we will actively cooperate with the investigation;"
Secondly, our products are absolutely safe and legal;

Third, we welcome the FDA to conduct relevant safety regulatory inspections at any time.

After the statement was completed, it was first sent to me and Mr. Chen for review, and then immediately forwarded to all partner media outlets.

After arranging these things, Mai Lisi paused, softened her voice, and said, "Everything we do now is not only to solve the immediate trouble, but also to tell everyone that Chen Ji Foods is not a pushover."

"If we win this battle, no one in the North American market will dare to underestimate us again."

Meanwhile, on Hong Kong Island.

Gu Yongxian's actions were equally swift.

The Washington law firm he contacted, Alston-Borde, is a top firm in the field of food and drug law. One of its founding partners, Richard Alston, was a senior FDA official and was well-versed in the FDA's internal operating rules and review tendencies.

Of course, the fees are extremely high, with hourly rates reaching hundreds of dollars, and a substantial upfront payment is required.

After an urgent transoceanic phone call, the other party sent a senior partner, Irwin Carter, to Chen Ji Foods' North American office to meet with Michael and Li Ming.

In the office conference room, Mireille and Li Ming met with Owen Carter.

He was around fifty years old, with his hair neatly combed, wearing a well-fitting dark suit, sharp eyes, and spoke slowly but clearly.

“Mr. MacLeod, Mr. Li, I have a preliminary understanding of the situation.”

A copy of the inquiry letter was laid out in front of Irving Carter. "Procedurally, the FDA's current actions are still in the preliminary investigation and inquiry stage, but the speed of initiation and the focus seem... unusually proactive."

Typically, for new product categories like Pulsed Thunder containing high doses of functional ingredients, the FDA prefers to observe market reactions and collect more spontaneous reports rather than intervene so quickly.

He paused, then pointed out the key point: "The complaint was anonymous, which is standard practice."

However, the complaint directly addresses safety concerns regarding caffeine and taurine, rather than common labeling errors or contamination issues, which is quite telling.

The other party is very knowledgeable; they know how to touch the FDA's most sensitive nerve.

"Our ingredients are completely within safe limits!" Li Ming couldn't help but emphasize.

“I believe it,” Irving Carter nodded. “Scientific validity is a prerequisite.”

However, the FDA's decisions are often not based purely on science; they also take into account public opinion, political pressure, and... industry practices.

Currently, caffeine is recognized as a safe substance when used as a flavoring agent in carbonated beverages, and there are no clear limits, which is an advantage for us.

But your product has a much higher concentration than traditional cola, and conservatives within the FDA could very well demand a reassessment.

He then changed the subject, saying, "Therefore, our strategy cannot be limited to passively responding to inquiries."

"What is your suggestion?" Maris asked.

“We should adopt a proactive and cooperative approach,” Irving Carter stated clearly. “First, submit an extremely detailed and impeccable scientific report within the stipulated timeframe to demonstrate safety.”

Secondly, we proactively requested a face-to-face meeting with the FDA, where our expert team could present their findings directly, turning a passive situation into an active one.

Third, initiate a food safety audit process.

Although the process is cumbersome, once completed, it will provide long-term protection for the product.

Fourth, and crucially, we need to speak out in the public sphere, not to confront the FDA, but to demonstrate our transparency and confidence, indirectly putting pressure on the FDA to realize that overreaction could stifle innovation and create unnecessary public anxiety.

“The propaganda war is very important,” McLeish agreed. “We are preparing a major marketing campaign, the Leap Forward plan, which can be a platform for us to demonstrate our confidence and strength.”

“It’s excellent that you think this way,” Irwin Carter nodded in agreement. “Combining business activities with a positive approach to regulatory scrutiny sends a strong signal of confidence.”

My team will be responsible for drafting all legal documents and direct communication with the FDA.

You need to ensure that the technical and data support is flawless.

He concluded by saying, “Of course, all of this comes at a cost. For these types of cases, we typically charge a starting fee of $350 per hour, and the fee is even higher if Mr. Alston is personally involved.”

And a deposit of $100,000 is required in advance.

If hearings or more complex litigation are involved, the costs will increase significantly.

“Fee is not an issue,” McLeish said firmly. “Please begin work immediately.”

We need you to provide a legal opinion as soon as possible, analyzing the legal basis and potential risks of the FDA's inquiry, and guiding us on how to prepare and submit technical documents.

At the same time, it is hoped that Mr. Alston can use his influence to attempt informal communication with within the FDA to understand just how strong the driving forces behind it are.

"Understood. We will immediately assemble a team to first analyze the legal loopholes in the inquiry letter and the boundaries of the FDA's authority."

"At the same time, we will guide your technical team on how to present scientific data in a way that best suits the FDA's review practices," Irving Cattell replied firmly.

After seeing Owen Carter off, Milis immediately made an overseas call to Chen Bingwen, giving a detailed report on the meeting with the lawyer and the strategy they had devised.

After hearing the detailed report, Chen Bingwen instructed: "I agree with the strategy."

Money is not a problem, but time must be fast and effective.

Tell them that if they can resolve this matter properly within a month, they will receive an additional 20% bonus.

"Ok."

Meanwhile, preparations for "Project Leap" were being accelerated. McLeish deliberately had his team release some high-resolution photos of Rick Stevens undergoing acclimatization training to newspapers and television stations, hyping up the idea of ​​the first unpowered crossing of the Grand Canyon.

It successfully sparked a wave of curiosity and attention, diverting public attention from the FDA review.

Villa No. 75, Deep Water Bay Road.

It was rare for Chen Bingwen to come home on time for dinner.

At the dinner table, Chen Guofu looked at the newspaper report about Qingzhou Yingni. Although he didn't quite understand the complicated financial terms, the words "significant profits" and "optimistic market outlook" still made him smile.

"Awen, the newspapers are all praising you," Chen Guofu said with a smile.

“Dad, it’s all just empty fame. It’s just that business is going well.” Chen Bingwen put a piece of fish on his father’s plate.

Wang Qiaozhen was more concerned about whether her son was tired: "Business is important, but health is also important."

You're always so busy, you're practically never around.

"Okay, Mom." Chen Bingwen nodded, then smiled and said, "Dad, Mom, there's something I need to tell you."

The matter I mentioned to you last time about visiting relatives in mainland China has been approved.

"It's approved?!" Wang Qiaozhen's hand trembled, almost dropping her chopsticks on the table. Her voice instantly trembled. "Really? When can we go back?"

Chen Guofu also abruptly put down his newspaper and stared intently at his son.

“Really.” Chen Bingwen nodded affirmatively. “My friends at China Resources helped coordinate everything, and all the formalities have been completed.”

We should be able to set off around the beginning of next month.

I'll have Zhao Gang take a few men to accompany you back, so you can keep an eye on each other on the way.

"Good! Good!" Wang Qiaozhen's eyes instantly reddened, and she was so excited that she didn't know what to say. "We can go back now, we can finally go back! I wonder how your grandparents are doing, and whether the old house is still there..."

Chen Guofu took a deep breath, trying to calm his excitement, but his slightly trembling hands betrayed him: "After all these years, I can finally go back and take a look."

Ah Wen, you did a great job!

This dinner was made especially warm and cozy by the news.

Seeing his parents' happy faces, Chen Bingwen felt that all the busyness and pressure he had endured during this period had been worthwhile.

With a harmonious family, everything prospers; with stability at home, he can focus more intently on his work at the front.

He knew that the mainland authorities' swift approval of his family visit was subtly related to his successful transaction with China Resources regarding the Qingzhou Yingni Cement business.

This may seem like a family matter, but it is not.

After dinner, Wang Qiaozhen took out an old box that hadn't been touched for many years and started packing gifts to take back to her hometown.

Fabrics, candies, some commonly used medicines, and several new electronic watches prepared by Chen Bingwen.

As she tidied up, she chatted with Chen Guofu: "I wonder how my brother's family is doing. My nephew should be married by now, right?"

The younger generation will definitely love this digital watch.

Chen Guofu sat to the side, silently wiping a pair of reading glasses, his gaze somewhat distant.

As I get closer to home, I feel a mix of emotions.

He asked Chen Bingwen, "Wen, over there... are there many rules if we go now? Will it cause you any trouble?"

Chen Bingwen put down his teacup and comforted him, "Dad, don't worry."

My friends from China Resources have made all the arrangements; it's just a normal family visit, nothing special.

Go back and visit, stay for a few days, take some photos and come back.

There won't be any trouble.

(End of this chapter)