Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 36 Takeover (Please add to your favorites, vote for this book, and recommend it!)

Two days later, the Bangkok Post published a major analysis in its supplement by an "independent observer," titled "The coconut milk industry's predicament under the shadow of the typhoon: an industry reshuffle is imminent."

The article is logically rigorous and data-rich, directly pointing to the fatal flaws of major southern manufacturers such as King Elephant, whose production capacity has been halved and costs have soared. Every word is like an icicle, piercing the already fragile nerves of the market.

Even more devastatingly, the financial sections of Singapore's Straits Times and Hong Kong's Hong Kong Economic Journal reprinted the story almost simultaneously, with the attention from international media acting as the final spark to ignite the fuse.

In an era where information exchange was entirely passive, individual investors had no ability to distinguish between true and false information from the outside world.

They naturally believe the reports from news media such as newspapers, radio, and television.

Panic began to spread to the Bangkok Stock Exchange.

"Mr. Chen, the selling pressure is picking up! Retail investors can't hold on any longer at 1.18 baht and 1.16 baht!"

Xie Jianming's voice was low, but he couldn't hide his excitement as he stared intently at the constantly changing stock prices on the trading board.

Chen Bingwen nodded and ordered the two traders, "Keep a close eye on the stock price of Jinxiang Foods. From now on, limit each order to less than 50,000 shares and buy in multiple orders."

Be careful to control the position size of any single account, and do not exceed 5%.

At this moment, Chen Bingwen has been in Bangkok for ten days, and the first shot against Golden Elephant Foods has officially been fired!
Rumors are the cheapest and sharpest weapon in the capital market.

Once a crack is found, it will grow and spread wildly.

Chen Bingwen's meticulously crafted, professionally veneered bearish analysis was the first crack.

Over the next two days, the article was interpreted in various ways by investors, causing many retail investors holding shares in Jinxiang Food Industry Company to follow suit and sell their shares.

Xie Jianming and Guo Sen used more than twenty retail investor accounts to absorb the panic selling of Jinxiang Foods' retail investors.

Sugar Heart Capital's stake in Golden Elephant Foods is gradually approaching 51%.

One week later.

Conference room at the headquarters of Golden Elephant Foods.

The core members of the Somchai family and several senior executives of Golden Elephant Company are holding their weekly meeting.

Near the end of the meeting, CFO Basong reported that the stock price of Golden Elephant Foods had fluctuated in the past few days.

"Stock price fluctuations?"

Songla, chairman of Golden Elephant Foods, said with the authority typical of a long-time leader, "It's just retail investors selling off their shares due to the typhoon. Keep a close eye on the market and use the family's reserve funds to support the market if necessary!"

“But, Father,” Sonra’s eldest son, Sonsa, who was in charge of marketing, interjected urgently, “the panic in the market is spreading very quickly!”

Those retail investors wouldn't listen to any explanations; they just kept selling! If the stock price continues to fall like this, it will not only affect our subsequent financing plans, but also the banks' assessments.

“A bank?” Sonra’s eyes widened suddenly. “Didn’t Pangoal Bank just renew the mortgage agreement?”
That loan was crucial in supporting our restoration of the southern coconut plantations!

When the bank was mentioned, CFO Basong's body trembled almost imperceptibly, and fine beads of sweat instantly appeared on his forehead.

He subconsciously wiped his face with a handkerchief, but this subtle action did not escape the eyes of Sonsa, Sonla's eldest son.

“Father,” Basong’s voice was dry and strained, “there are new developments regarding the mortgage loans from Pangoal Bank that I need to report to you.”

All eyes in the conference room instantly focused on him.

“Speak!” Sonra’s voice suddenly rose, staring at Basong and waiting for him to continue.

"Our funding gap for repairing the coconut plantations in the south is much larger than expected. We need to secure sufficient loans as soon as possible to ensure that the coconut milk supply is not completely interrupted."

Basong swallowed hard. "On top of the existing 20% ​​equity pledge, we added another 10% of our family equity as collateral, which we pledged to Pangu Bank."

"What?" Sonra jumped up from his chair. "Who gave you that power? That's the foundation of our family!"
Ten percent? Adding that to the previous twenty percent, thirty percent of the shares are pledged to the bank?

This news was like a bombshell that exploded in the conference room.

The faces of family members and executives were filled with shock and disbelief.

"The funding gap for the restoration of the coconut plantations in the south is too large. The banks are requiring additional collateral before they will release the funds. I thought we could recover the money quickly."

"What do you think?" Sonra suddenly grabbed the brass ashtray on the table and smashed it hard against Basong!

With a loud bang, the ashtray smashed into the conference table, leaving a deep dent.

"The foundation of our family has been destroyed because of your foolish thinking!"

“Father!” Somsak, who had been silent all along, suddenly stood up, his face equally grim. “Now is not the time to assign blame.”

The stock price is still falling! Someone is buying up our stock on a large scale!
Those anonymous reports, coupled with the news that a large amount of our shares have been pledged, if further rumors surface from Pangu Bank…

As if to prove his point, the conference room door was suddenly pushed open.

Secretary Songra stumbled in, "Chairman! We just received a notification from the Bangkok Stock Exchange that Golden Elephant Foods' stock has been suspended from trading!"

"What?" Sonra's vision went black.

"The exchange sent a notice saying that the stock price was fluctuating abnormally and suspected manipulation, and asked us to immediately provide detailed information on changes in the shareholding of the major shareholders and the actual controller."

Trading will be suspended for at least three days!

The secretary hurriedly explained.

Three days!

Sonra felt dizzy and disoriented.

Suspending trading for investigation is like putting a lid on a pot of frying oil.

The moment the lid is lifted is the moment when Golden Elephant boils and explodes completely.

Three days is enough for the hunters lurking in the shadows to deliver a fatal blow, and also enough for Pangoal Bank to sense the danger and take action!

Panic instantly filled the meeting room.

Meanwhile, the atmosphere was completely different in the executive suite of the Oriental Hotel in Bangkok.

Chen Bingwen stood on the sofa and made a phone call to Fang Wenshan, who was at the Bangkok Stock Exchange at the time.

Fang Wenshan's clear and excited voice came through the phone receiver:

"Mr. Chen, it's done! The stock exchange has officially suspended trading! Golden Elephant has been dragged into the investigation process, and the Songchai family will be unable to move for at least three days!"
We've swept up all the shares in circulation! Including the shares we secretly acquired earlier, Sugar Heart Capital now holds shares in Golden Elephant Foods.

Fang Wenshan paused for a moment, his voice tinged with disbelief and excitement.

"Fifty-one-three percent!"

51.3!

A controlling stake that's enough to crush everything!

Chen Bingwen took a deep breath and said happily, "Thank you for your hard work, Accountant Fang."

Immediately, in the name of Sugar Heart Capital, we will issue a formal notice to the stock exchange and the board of directors of Jinxiang Foods: As the new controlling shareholder of Jinxiang Foods, we request that an extraordinary general meeting of shareholders be convened in three days to exercise our rights as a major shareholder and take full control of the company's operations!

"Understood!" Fang Wenshan's voice was also very excited.

Even though Golden Elephant Food Industry Company is not large, it is still a listed company, which will greatly enhance Fang Wenshan's qualifications.

Three days later, in the conference room at the headquarters of Golden Elephant Foods.

The atmosphere was tense.

At one end of the long conference table sat a group of Somchai family members, led by Somra, and former executives of the Golden Elephant Group.

At the other end, Chen Bingwen, along with Fang Wenshan, Xie Jianming, Guo Sen, two local Thai lawyers, and two translators, calmly took their seats.

Songla fired the first shot, her tone forceful: "Mr. Chen! Sugar Heart Capital?"
Good tactic! But don't forget, this is Thailand!
The Golden Elephant is the culmination of our Songchai family's hard work! You think you can just take it away like that?

The board of directors will absolutely not agree! The shareholders will not allow it either!

Chen Bingwen didn't even lift his eyelids, and gestured for the lawyer to push the documents to the center of the table.

“Mr. Sonla,” Vincent Fang began, his tone very formal, “this is the share registration confirmation document from the Bangkok Stock Exchange.”

Sugar Capital currently holds 51.3% of the shares of Golden Elephant Food Industry Company, making it the absolute controlling shareholder in a legal sense.

According to Thailand's Civil and Commercial Code and the company's articles of association, the controlling shareholder has the right to convene a shareholders' meeting, elect a new board of directors, and determine the company's operating policy.

The purpose of our convening this extraordinary general meeting today is to exercise this right.

Sonla slammed his fist on the table: "51.3%? Who knows where you got your shares! Were those reports fabricated by you? We're demanding an investigation!"

“That’s your right,” Chen Bingwen finally said, “but investigation is investigation, and procedure is procedure.”

Mr. Sonla, your primary responsibility and that of the Golden Elephant Board of Directors is to cooperate with the controlling shareholder to complete a legal and smooth transfer of the company's management control.

Any obstruction will be considered as harming the company's interests, and the controlling shareholder reserves the right to pursue legal action.

His gaze swept over the gleaming eyes of the executives behind Sonra. "I believe that all of you professional managers here are better positioned to fulfill your responsibilities." It was a blatant threat, yet based on undeniable legal facts.

Sonra choked until his face turned purple.

His financial director, Basong, standing behind him, was sweating profusely.

The meeting proceeded in a tense atmosphere.

The Somchai family tried to delay, but the professional team brought by Chen Bingwen resolved each issue with legal provisions and company bylaws.

Ultimately, under the overwhelming pressure of absolute control, the extraordinary general meeting of shareholders forcibly passed the resolution.

The original board of directors was dismissed.

Five new directors nominated by Sugar Heart Capital were elected to the board of directors, including Chen Bingwen, Fang Wenshan, and three Thai professionals hired by Chen Bingwen.

The new board of directors immediately took over all management and operations of the company and reassessed the existing management team.

Seeing this, Sonla led his people away in anger.

The remaining former executives of Jinxiang looked at each other, the atmosphere awkward and fearful.

Without wasting words, Chen Bingwen looked directly at the heads of the remaining departments: production, procurement, finance, and sales.

"Ladies and gentlemen," Chen Bingwen stood up and looked at everyone, "the change of ownership of Golden Elephant is a foregone conclusion."

I have no intention of dwelling on the past. But the company needs to survive and make money.

I need people who are capable and willing to move forward with the new Golden Elephant.

"You have two choices: First, stay. Cooperate with the new management to complete the handover, pass the evaluation, and your compensation will remain unchanged, with future adjustments based on your performance."

Second, collect your severance pay and leave now. Tell me your choice in ten minutes.

There were no lengthy reassurances, no false promises.

There are only straightforward choices and tight deadlines.

This decisive and efficient style suffocated Thai executives who were used to the slow pace of family businesses, but they also sensed a sharpness that was different from the past.

Ten minutes later, no one had left.

Production Director Pongchai and Purchasing Manager Chawat stepped forward to express their willingness to cooperate.

Chen Bingwen nodded: "Very good. Director Pengchai, Manager Chawa, you two stay."

Everyone else, return to your posts and wait for further instructions.

Mr. Fang will arrange a follow-up evaluation.

He turned to Pongchai: “Take me to the production workshop and the coconut plantation. Now.”

Over the next few days, Chen Bingwen was like a tireless spinning top.

They went deep into the affected coconut plantations in the south to inspect the fallen coconut trees and damaged irrigation systems.

At the processing plant in Rayong Industrial Park, we inspected the equipment, raw materials, and coconut milk production process.

Review production records, financial statements, and sales contracts.

Pongchai and Chawa followed behind, their initial trepidation turning into a secret sense of dread.

This young Hong Kong Island boss has a sharp eye and gets straight to the point.

He doesn't understand Thai, but he always manages to accurately grasp the key points through translation.

After Chen Bingwen had a very clear understanding of the situation of Jinxiang Food Industry Company, he convened the first core management meeting after taking over the company in the factory office.

Vincent Fang, Pongchai, Chawat, and the newly nominated finance director Wirayu were present.

"First, for the coconut plantations in the south affected by the disaster, we will screen coconut trees that can be saved, clear fallen trees, and start a replanting plan immediately."

However, in the short term, the main source of coconut milk raw materials has shifted to the northern production area.

Manager Chawa, I need you to sign contracts with at least six supply points within three days with coconut farming cooperatives in Chiang Mai, Phang Nga, Chumphon, and other areas that are not exclusively sold by large companies, covering 70% of the production capacity for the next three months.

Prices are set at 5% above pre-disaster market prices, and quality is required to meet first-class standards.

30% prepayment, 70% upon delivery, is that okay?

Chawa felt the pressure, but even more so the trust placed in him. He nodded vigorously and said, "No problem, Boss Chen! I'll get on it right away!"

"Secondly, Director Pongchai, the Rayong factory currently has three production lines. The equipment is in decent condition, but the efficiency is low and the quality control process is practically non-existent."

I need you to increase your daily coconut milk production capacity to 5 tons within two weeks. Please provide a detailed plan by tomorrow afternoon.

Pongchai immediately replied, "Understood, Mr. Chen!"

"Third, Golden Elephant's original coconut milk and syrup business will be maintained for the time being."

However, 70% of the Rayong factory's production capacity must be prioritized, stably, and in sufficient quantity supplied to Hong Kong Island Chan Kee Food Co., Ltd.!

The remaining capacity can continue to supply existing customers, but will be reassessed upon contract expiration.

All orders from Chen Ji are produced separately, transported by dedicated lines, and must meet Chen Ji's highest internal quality standards.

Mr. Willayut, please immediately establish a dedicated financial settlement channel from the Golden Elephant factory to Chan Kee Foods on Hong Kong Island.

Wirayu nodded calmly: "It's already being processed simultaneously, Mr. Chen."

The reason for going to such great lengths to acquire Jinxiang Food Industry Company is to secure Chen Ji's raw material supply chain. After taking over, the priority will naturally be to meet Chen Ji's needs.

"Fourth, Director Pongchai and Manager Chawa, you are responsible for stabilizing the team."

The turnover rate of key personnel should be kept below 5%.

Technical backbone personnel who are willing to stay will retain their original compensation.

Those with outstanding abilities may receive a raise after evaluation.

However, any act of passive resistance or underhanded sabotage of the handover will result in immediate dismissal and prosecution to the maximum extent permitted by the contract.

Mr. Fang, you are responsible for overseeing the implementation.

“Received.” Fang Wenshan quickly wrote it down.

"Finally," Chen Bingwen closed his notebook, his gaze sweeping over everyone, "the crisis at Golden Elephant was caused by the mismanagement and greed of the Songchai family."

Now, Golden Elephant belongs to Sugar Heart Capital, and it also belongs to everyone.

I only ask for one thing: efficiency! Execution!

We must recover the lost production and win back the lost customers!

If we can do it, Golden Elephant can survive, and everyone will have a future.

It's impossible, or someone might outwardly comply while inwardly disagreeing.

He didn't finish speaking, but his cold gaze sent a chill down the spines of the Thai executives present.

"The meeting is dismissed!"

Back at the Oriental Hotel, Chen Bingwen sought out Vincent Fang.

“The 13% stake held by the Somchai family, along with the 30% stake held by Pangu Bank as collateral, poses a potential risk.”

Chen Bingwen got straight to the point: "Songla will not be satisfied and may join forces with Pangu Bank or other forces to make some underhanded moves. We must deal with them cleanly."

Fang Wenshan thought for a moment and said, "Bangkok Bank is the leading bank in Thailand and has a huge influence."

They hold shares pledged by the Somchai family, and now that the Golden Elephant stock price has plummeted, the value of the collateral is severely insufficient.

Banks are most concerned with minimizing losses and ensuring the safety of their claims.

The Somchai family cannot repay their debts, and the bank has the right to dispose of these shares.

"This is the opportunity. I plan to meet with the person in charge of the Golden Elephant loan case at Pangu Bank to try to convert the shares that the Somchai family has pledged to Pangu Bank into shares of Pangu Bank."

This resulted in a shareholding structure for Golden Elephant Company of 51.3%, Pangu Bank 30%, and the Somchai family 13%.

"You want to use Pangu Bank, the leading bank, to check and balance the Songchai family?" Fang Wenshan suddenly realized.

Chen Bingwen nodded: "With Pangu Bank as the second largest shareholder, the Songchai family wouldn't dare to make any underhanded moves!"

　I'll update first and then revise later. Thanks for your support! This chapter was really brain-teasers; the names and place names of these Thai people were completely baffling.

　　
　
(End of this chapter)