Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 74 Unleashing its Power (Second update of 10,000 words per day! Please vote with your monthly tickets and recommendations!)

Back at Jindu Garden, Chen Guofu and Wang Qiaozhen were already asleep.

Chen Bingwen tiptoed into the study and gently closed the door.

He walked to his desk and took out the latest monthly financial statements from Dexin Accounting Firm from his briefcase.

Chen Bingwen's gaze slowly moved among the various numbers listed on the paper.

Chen Ji Food Co., Ltd.

Current assets: HKD 105 million;

Net fixed assets (including equipment valuation at the Kwun Tong and Cheung Sha Wan plants): HKD 258 million;
Short-term liabilities (mainly accounts payable to suppliers): HKD 12;
Net profit for this month (including payment for the first batch of orders from Singapore): HKD 68;
Cash and bank deposits: HKD 183 million;
Debt (acquisition of Thailand's Golden Elephant Company): HK$4 million (one-year term, due in April 1979).

Sugar Heart Capital:

Permanent copyright for Drunken Master in Japan and Southeast Asia: HKD 20;

51.3% stake in Thailand's Golden Elephant Foods Company: market value approximately HK$290.4 million;
Cash and bank deposits: HK$171.3;

Private bank account: HK$101 million; (the amount after Wharf Holdings' profits were used to purchase the Cheung Sha Wan and Kwun Tong factories, as well as the Golden Garden.)
Looking at the rows of numbers in front of him, Chen Bingwen felt a great sense of accomplishment.

In just six months, the company went from a nearly bankrupt dessert shop in Sham Shui Po to owning two factories in Kwun Tong and Cheung Sha Wan.

With a network of mobile outlets, standard stores, and franchise stores covering Hong Kong and Kowloon, and holding a controlling stake in Thailand's Golden Elephant Food Industry Company, its bottled sweet soups are best-sellers in Singapore, Malaysia, and Indonesia, and its net assets are nearly HK$10 million.

Such a rate of development would have been quite phenomenal even in the previous era.

Based on Chen Ji Foods' current profitability, with subsequent orders from Singapore, the booming development of the Hong Kong Island convenience store channel, and the gradual opening of the Malaysian and Indonesian markets, monthly net profit exceeding one million Hong Kong dollars is just around the corner.

At that time, repaying the HK$400 million loan will be more than enough.

Therefore, the current cash and bank deposits can serve as a boost and source of confidence for Chen Ji to increase its production capacity.

The following day, in the conference room of the Kwun Tong Food Factory.

Chen Bingwen, Ling Peiyi, Gao Zhenhai, Zhong Qiang, and financial manager Liang Qiming sat around the table, discussing how to resolve the production capacity constraint issue in a short period of time.

“Everyone is aware of the situation.” Chen Bingwen got straight to the point, laying out the Singapore orders, feedback from the Singapore, Malaysia and Indonesia markets, data on the expansion of local convenience store channels, and the current production capacity pressure one by one. “The bottleneck is right in front of us, and it will only get tighter.”

As Gao Zhenhai listened to Chen Bingwen read out the demand figures, fine beads of sweat appeared on his forehead: "Brother Wen, the production line... it can't keep up with the demand after running for so long."

The machine has been operating under high load continuously, and the failure rate has begun to rise.

The filling valve got stuck once yesterday, but luckily Brother Qiang and his team fixed it quickly.

The workers are exhausted, working three shifts in a row. Although they are paid generously in bonuses, the physical exhaustion is real.

If this continues, I'm afraid... I'm afraid something terrible will happen!

Zhong Qiang nodded with a serious expression: "Boss, the equipment is operating beyond its capacity, and many routine maintenance and preventative care that should be done have been reduced or even canceled."

Hidden dangers are accumulating, and the frequency of minor malfunctions is increasing significantly.

The filling valve jamming yesterday was caused by excessive wear and premature aging of the seals.

If this continues, once a major problem occurs with a core component, it won't just be a few hours of downtime; it could mean several days or even longer of production stoppage!

The consequences of repair costs and order delays would be unimaginable.

Ling Peiyi continued, "Mr. Chen, I calculated it yesterday."

Based on current demand forecasts, the minimum production capacity shortfall next month will be more than 30,000 bottles per day.

Even if we disregard everything and squeeze our existing production capacity to its theoretical limit of 70,000 bottles per day, it will only be enough to barely cover the basic needs of Singapore orders and Hong Kong Island.

Once products are officially available in Malaysia and Indonesia, coupled with the continued growth in the convenience store channel, the supply gap will only widen.

This doesn't even include the necessary maintenance time for the equipment.

Sacmi engineers have emphasized that at least 24 hours of downtime per month is required for in-depth maintenance; otherwise, the equipment's lifespan will be significantly shortened and the risk of failure will increase dramatically.

Once production stops, Nissan's output will drop to zero, and the impact on the supply chain will be devastating.

Chen Bingwen nodded and said, "I communicated with Director Ling yesterday, and I have decided to start the construction of the second production line immediately."

Considering Sacmi's production line, the cycle from order placement, production, shipping, installation and commissioning to final production takes at least four to six months.

This is assuming everything goes smoothly.

Our production capacity shortfall is an urgent issue that will be pressing within the next two weeks or even next month.

Since distant water can't quench our immediate thirst, let's find water nearby.

Acquisition!

Immediately search for small and medium-sized beverage factories in Hong Kong Island and surrounding areas that have mature hot filling capabilities.

As long as the equipment is usable, the production capacity is matched, and the price is reasonable.

"After the acquisition, we can quickly establish production capacity to make up for our insufficient output."

Previously, Chen Bingwen was unable to fully utilize his resources due to insufficient funds.

Chen's account currently holds 1.83 million yuan in cash!
Sugar Heart Capital has 1.71 million in cash and nearly 3 million worth of Golden Elephant shares!

He has one million in his personal account as a reserve!

Even taking into account Wing Lung's four million debt, it still has nine months to repay!
This amount of money would be sufficient even if it were used to acquire a medium-sized beverage plant with hot filling equipment.

Chen Bingwen leaned forward slightly, and the aura of wealth and power he exuded from his past life—the kind that allowed him to crush his opponents with capital—instantly spread out:
"Currently, Chenji's abundant cash flow is our greatest weapon!"

We never dared to think about acquiring directly before because we didn't have the capital to gamble!
Now, we have the confidence!
This money is meant to break through bottlenecks, seize time, and capture market share!

“Money has never been a problem.” Chen Bingwen’s voice carried a confident air. “In the past, we were hesitant because we were poor and had to be very careful with every penny. We couldn’t afford to gamble. But now…” He glanced at the four people, “All small and medium-sized beverage factories with hot-filling capabilities in Hong Kong Island and the New Territories.”

Regardless of their size or the age of their equipment, as long as the core filling equipment is usable and there is potential for capacity expansion, they should all be considered for acquisition.

"Spread the word to chambers of commerce, industry associations, equipment suppliers, law firms, and accounting firms, and let them spread the word through their familiar channels that Chenji Foods needs to purchase a factory with hot filling equipment."

Price is not an issue! We prefer readily available Sacmi or equivalent equipment!
Spread the word: we're buying with cash, lightning-fast delivery!

These menacing words, which made no attempt to conceal his wealth and capriciousness, shocked everyone present.

What do you mean by "price is not an issue"?

What is meant by "priority Sacmi"?
This is practically a "I'm rich, come quick" message written all over their faces!

Ling Peiyi instantly understood Chen Bingwen's decisiveness, "Understood! Mr. Chen! I will use all resources to compile a preliminary list!"

“Very good!” Chen Bingwen turned to Gao Zhenhai and Zhong Qiang. “Ah Hai, Brother Qiang! You two organize a technical team. Once the list is out, bring your most reliable engineers to investigate the proposed acquisition targets. Focus on two points: whether the equipment can be quickly upgraded and put into production, and how much actual production capacity potential it has.”

All other minor details—the renovation, the age of the factory, the quality of the staff—can wait and be set aside.

Please provide a technical assessment report for each candidate organization!

Chen Bingwen drew his finger forcefully in the air, "In short, we don't care about the gains or losses of a single city or place, we only care about whether it can be transformed into the production capacity we urgently need as quickly as possible!"
Everyone needs to understand that all these expenses are for gaining market share and time! I understand this better than anyone else!

Liang Qiming took a deep breath. His boss's domineering logic of using capital to create a way out completely overturned his usual financial conservatism.

But numbers don't lie. Holding onto millions in cash and huge future profit potential, while hesitating over a premium of a few hundred thousand or a hundred thousand and the follow-up costs, is practically strategic suicide.

After the meeting, the entire Chenji management team began operating at maximum efficiency.

Chen Bingwen's declaration that "money is not a problem" and "use money to buy time" acted like a shot in the arm, instantly activating the fighting spirit of the entire team.

Soon, through Ling Pei-yi's precisely targeted information channels, the news that Chan Kee Foods was going to acquire a factory with hot filling equipment quickly spread within the small and medium-sized manufacturing circles on Hong Kong Island.

This news was especially seen as a lifeline by struggling beverage business owners.

Starting the next morning, the office phone at the Kwun Tong factory was ringing off the hook.

"Hello Mr. Chen! This is Old Li from Li Tong Soft Drink Factory in Tsuen Wan! I heard you're looking for a bottling line? Our factory has a Mitsubishi line from Japan, and it's a very new model!"
It was just introduced last year! It's...

"Hello? Is this Mr. Chen? We are Tian Tian Juice from Yuen Long. Our factory is clean and our equipment is excellent!"
Three lines available! Ready to use! Would you like to take a look? The price is absolutely fair.

"Mr. Chen! I'm Old Qian from Tai Cheong Hong in Kwun Tong! You need a production line? I have a source for German Krones stock, 90% new! The price is only..."

The information is a mix of truth and falsehood, and behind the enthusiasm, everyone has their own ulterior motives.

Some are looking to get rid of a hot potato, some are equipment dealers who have caught wind of the situation, and some are like sharks smelling blood, trying to fish in troubled waters.

Ling Peiyi quickly eliminated targets that clearly did not meet the requirements based on equipment type, scale, geographical location, and business status.

Three companies with hot filling lines, decent equipment, small scale, and relatively convenient locations were shortlisted and placed on Chen Bingwen's desk along with brief information.

Chen Bingwen made his first choice without any hesitation, choosing Shatin Wing Fook Beverage Factory as the closest and most efficient integration target.

Wing Fook Beverage Factory, Fo Tan Industrial Estate, Sha Tin.

The dilapidated iron gate, the somewhat empty factory area, and the faint scent of sweeteners in the air.

The boss, Huang Yongfu, wore a slightly worn suit and his hair was neatly combed, but he couldn't hide the anxiety in his eyes.

Seeing the group surrounding Chen Bingwen, he forced a slightly stiff smile and said humbly, "I am deeply grateful for Mr. Chen's esteemed presence! My name is Huang Yongfu."

"Mr. Huang, you're too kind." Chen Bingwen shook hands with Huang Yongfu and got straight to the point, "Director Ling should have given you a general overview of the situation over the phone. Let's take a look at the equipment first."

The overwhelming sense of pressure from this decisive action made Huang Yongfu nervously swallow.

In the workshop.

A dusty, long-discontinued carbonated beverage production line occupies most of the space.

In the corner, a hot filling line marked with the "SACMI" logo stood out prominently in the dim light.

It had clearly been wiped clean, contrasting sharply with the dilapidated surroundings.

"Mr. Chen, please look, this is the Sacmi noodle dish. It cost a lot of money back then," Huang Yongfu enthusiastically introduced. "It's a high-quality product imported from Italy!"

It cost over 600,000 yuan back then!
The designed production capacity is four thousand bottles per hour! "It's just been these last two years," he said, a look of embarrassment on his face, "that business has been slow these last two years, so we haven't been using much. Actually, if we just set things up properly, we can get it running again very quickly!"

Chen Bingwen nodded noncommittally, but did not approach. Instead, he stood a few steps away and checked the overall situation of the production line.

The main structure of the entire production line is intact, with no visible damage or deformation.

The lack of oil buildup on the machine indicates that routine cleaning is being done, suggesting that it hasn't been completely abandoned.

Several pipe joints had temporary welded repairs, which weren't very aesthetically pleasing, but they showed that the pipes were being maintained.

There were some relatively clean spare parts piled up in the corner, obviously for emergencies.

The entire inspection process took no more than two minutes, and a preliminary judgment had already formed in Chen Bingwen's mind.

Although the equipment is old, it looks better than it does from the outside.

The core components should be fine, and the basic functions have been preserved.

This aligns with his strategic requirements of "usable, adaptable, and fast"!

In his previous life, he had assessed many manufacturing companies on the verge of bankruptcy. He could see through the true nature of these small factories that were trying every means to save money and maintain their production lifeline just to survive.

"Ah Hai, Qiang Ge, you two take some men and carefully check the specific situation of the production line!" Having made his judgment, Chen Bingwen then called Gao Zhenhai and Zhong Qiang forward to check.

He then strolled to a relatively open area of ​​the workshop, calmly surveying the layout and environment of the entire factory area, as if assessing the potential of a rough gem rather than a factory on the verge of bankruptcy.

(End of this chapter)