Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 94 Wing Lung Bank's Attention (Seeking monthly votes and recommendations to continue reading)

The three framework agreements with Coca-Cola, Nestlé, and Suntory have not only made people on Hong Kong Island look at Chan Kee with new eyes.

The staff and management of Chen's were also thrilled.

The basic licensing fees of $80, $50, and $20, coupled with the continuous stream of commissions and bonuses, made everyone at Chen's company clearly see the company's huge potential and lucrative returns, instantly igniting the fighting spirit and confidence of the entire company.

However, Chen Bingwen knew that signing the agreement was only the first step in a long journey.

From the moment a promise is made on paper to the moment a product actually appears on the shelves of North American supermarkets and in the freezers of Japanese convenience stores, there is a long preparation period of at least three to six months.

Regulatory review, localization of packaging, integration of logistics systems, and negotiation of channel distribution—each step requires time to refine.

This timeframe is precisely the resource that Chen Bingwen needs most right now.

He needs to take advantage of this precious window of opportunity to make Chen Ji's production capacity, supply chain, and team indestructible.

"Thompson's promised access to North American and European channels will not be completed until the end of the year at the earliest, with internal processes, bottling plant coordination, and initial shipments being finalized."

At the Sha Tin plant, Chen Bingwen looked at the busy bottling production line and said to Ling Peiyi and Zhong Qiang beside him, "The process in the Japanese market might be faster, but it won't be less than two to three months. This precious window of opportunity is our golden time to sprint to increase production capacity!"

“Mr. Chen, the existing Sacmi hot filling line at the Shatin plant is mainly used for bottled sugar water,” Zhong Qiang immediately reported. “Rimba currently only has one filling line converted from that soft drink production line. To meet the explosive demand from the three major markets in the future, this capacity is probably not enough.”

“I had already considered this issue, and the new filling line must be put into operation in a timely manner.”

Chen Bingwen nodded, turned around and said, "Jinba functional beverages don't have high requirements for bottling lines. The soft drink production line only needs a little modification to meet the bottling needs."

Many small soft drink factories on Hong Kong Island are going out of business, so we can take this opportunity to buy one or two of them.

Chan Ping-man has this confidence because he is well aware of the current predicament of small soft drink factories on Hong Kong Island.

At this time, although Hong Kong Island's economy was taking off, market competition was becoming increasingly fierce.

For small local soft drink factories, survival is particularly difficult.

On the one hand, international giants such as Coca-Cola and Pepsi have almost monopolized mainstream channels and advertising resources thanks to their strong capital and powerful brand effect.

On the other hand, large domestic food groups such as Vitasoy and Watsons have also captured a huge market share with their diversified products and mature sales networks.

These small factories operate independently, resulting in high costs, low efficiency, and difficulty in achieving economies of scale.

Products often rely on low prices to barely survive in corner stores or remote areas, with meager profits.

The rise of new packaging technologies such as PET plastic bottles has had a huge cost impact on small factories that still use glass bottle recycling systems, leading to closures or acquisitions, which has become the common fate of most of them.

“That’s definitely a good idea,” Zhong Qiang’s eyes lit up. “Acquiring an existing factory means the equipment and skilled workers are readily available, the conversion period is short, and production capacity can be formed as quickly as possible!”

"However, the production department should pay attention to the reasonable allocation of production capacity. Jinba functional beverage is important, but bottled sugar water is equally important."

Besides the Hong Kong Island market, the market feedback in Singapore, Malaysia, and Indonesia has been very positive, with demand still surging.

Therefore, the production capacity of bottled sugar water must be maintained and cannot be reduced.

The newly acquired factory will be primarily used to expand Jinba's production capacity.

At the Sha Tin plant, the dessert production line needs to operate at full capacity, while also reserving space for potential new dessert products or further capacity increases in the future.

Before Jinba beverages have achieved market scale, bottled sugar water remains Chenji's most important source of profit and stable cash flow, and its strategic position is unshakable.

Ling Peiyi quickly understood Chen Bingwen's intention and replied, "Don't worry, Mr. Chen, the production and market supply of bottled sugar water will not be relaxed."

I will personally follow up on bottled sugar water orders from the Southeast Asian market to ensure timely delivery.

Chen Bingwen nodded approvingly, "That's exactly how it should be done, with a two-pronged approach of tapping into internal potential and expanding externally."

Transform the acquired factory into Jinba's production base in the shortest possible time and ramp up production capacity!

As he spoke, he looked at Ling Peiyi and said, "Acquisition negotiations need to be quick, accurate, and ruthless. The acquisition price only needs to be appropriate; there's no need to push it too hard."

"Understood!" Ling Peiyi nodded in response.

While Chen Bingwen was actively preparing to increase Jinba's production capacity, a completely different scene unfolded in the deluxe suite of the Peninsula Hotel.

"Fuck! Fuck! Fuck!" David Ross, who had just hung up the overseas call, slammed the phone receiver onto the landline and cursed repeatedly.

"Sir, what did headquarters say?"

Chen Ziming, who was standing to the side, asked cautiously.

"What did they say?" Ross looked up at Chen Ziming. "Given that Coca-Cola has reached an agreement, and the terms are far beyond our means, the board of directors has decided, after an emergency meeting, to suspend further negotiations on Chen's bottle cap patent!"
Pause! They just gave up like that!

Ross stood up and paced back and forth in the suite.

"18 months! It will take the headquarters' technical department at least 18 months to come up with an alternative."

For the next 18 months, Coca-Cola will be using that damn diamond-shaped bottle cap to improve their user experience in every corner of the world!

Our glass-bottled Coca-Cola and Mirinda will continue to be complained about by consumers as being difficult to open!

Market share will be eroded little by little!

The brand image will be damaged!
Can these losses be measured in millions of dollars?!

He stopped in his tracks, pointed at the open copy of the Sing Tao Daily on the table, and angrily rebuked:
"And that Jinba! Coca-Cola's distribution channels are its springboard."

Once it establishes a foothold in North America and Europe, leveraging Coca-Cola's damn bottling network, it will spread like a virus. We haven't even entered the energy drink market yet, and it might already be taking the lead!
Do those guys at headquarters, sitting in their air-conditioned rooms in New York, drinking freshly ground coffee, even know what market competition is?
Do you even know what strategic positioning is?!

Their minds are filled with Wall Street reports, not bottle caps on the shelf!

As the head of the Asia-Pacific region, Ross keenly saw the strategic value of the patents and the potential threat posed by Jinba. He fought tooth and nail to secure them, even at the cost of contradicting headquarters.

Ultimately, however, PepsiCo's conservative and short-sighted approach caused all their efforts to come to naught.

In this global game surrounding the tiny bottle cap, Pepsi completely lost its advantage due to the sluggishness and risk aversion of its decision-makers.

After a long silence, Ross resignedly said, "Let's pack our things."

Book the earliest flight back to New York.

This is no longer our business.

Emily and Chen Ziming exchanged a glance and nodded silently.

They knew that this trip to Hong Kong Island was already over for the PepsiCo Asia Pacific team.

On the other side, Chen Bingwen had just returned to his top-floor office in Fung Yip Building after inspecting the Sha Tin and Kwun Tong factories.

An unexpected phone call came in.

"Mr. Chen, hello! This is Zhou Mingzhe from Wing Lung Bank!" came the enthusiastic voice of Manager Zhou from the Credit Department of Wing Lung Bank on the other end of the phone.

Chen Bingwen was slightly surprised.

He and Manager Zhou had gotten along very well because of their previous loan transactions.

But all along, it was Chen Bingwen who took the initiative to approach Zhou Mingzhe.

This is the first time the other party has called me proactively, and with such a warm and enthusiastic tone.

"Hello, Manager Zhou," Chen Bingwen replied with a smile, but he already knew what was going on.

Banks always have the best information.

"Oh, Mr. Chen, congratulations!" Zhou Mingzhe's voice, even through the phone line, conveyed genuine admiration. "These past few days, the front pages of all the major newspapers have been filled with you and Mr. Chen!"
It's truly remarkable that they've forged strategic partnerships with major companies like Coca-Cola, Nestlé, and Suntory!

They've brought honor to businesses on Hong Kong Island!

I was incredibly excited when I saw the newspaper report!

"Manager Zhou, you flatter me. This is just a preliminary framework for cooperation."

Chen Bingwen responded with a smile.

"Mr. Chen is too modest! The value of this framework agreement is clear to anyone with eyes to see!"

Zhou Mingzhe changed the subject, his tone becoming more enthusiastic, "That's right, Mr. Chen."

With your company's rapid growth momentum, you will certainly need greater financial support in the future to seize this once-in-a-lifetime development opportunity!

We at Wing Lung Bank have always been very optimistic about Chan Kee's future!

Rest assured, we will not cause you any trouble at this time regarding the previous four million loan!

Once the loan matures, we can renew it anytime you need, and the amount is negotiable!

He paused, lowered his voice, and said with utmost sincerity, "More importantly, Mr. Chen, if you have any new funding needs in terms of capacity expansion, new product development, or market expansion in the near future, Wing Lung Bank is very happy to provide you with the strongest support!"
Whether it's new loan quotas or more flexible financing options, such as unsecured credit lines, we can sit down and discuss them in detail!
Regarding interest rates, we will definitely offer you the most favorable terms!
Our head office leadership has also given specific instructions to fully support promising and capable local enterprises like Chen Ji in going global!

A knowing smile appeared on Chen Bingwen's lips.

Sure enough!

The halo effect brought about by the agreement has already begun to appear.

The bank's change of attitude is the market's most direct recognition and endorsement of Chenji's value.

The previous caution when applying for a loan contrasts sharply with the current proactive enthusiasm, even bordering on obsequiousness.

The $150 million (approximately HK$750 million) licensing fee, coupled with the partnership with major distribution channels, instantly elevated Chen Kee's credit rating by several levels!
“Thank you for your trust and support, Manager Zhou and Wing Lung Bank,” Chen Bingwen replied calmly. “Manager Zhou is right. Chen’s is indeed planning a rapid expansion of its production capacity to meet the upcoming opportunities in the international market, and the capital requirements are considerable.”

In that case, I will have the head of the company's finance department contact you later to discuss our specific financing needs and plans in detail.

We hope to achieve deeper cooperation with Wing Lung Bank and jointly seize this development opportunity.

"Great! Great!" Zhou Mingzhe exclaimed with delight, his voice rising several decibels. "No problem, no problem!"

We're ready to serve you anytime!

After hanging up the phone, Chen Bingwen's smile deepened.

The bank's proactive "delivery of money" means that he has gained a significant amount of resources at his disposal.

Acquiring small soft drink factories, upgrading equipment, expanding raw material procurement, recruiting and training workers—all these plans that require real financial investment now have a stronger foundation.

However, before that, he had a more important and urgent matter to deal with first.

(End of this chapter)