Rebirth in Hong Kong: From Dessert Shop to Industrial Empire.

Chapter 252 Inspecting 4K (Seeking monthly tickets, recommendations, and subscriptions!)

After returning from his inspection of the shipyards and factories in Tsing Yi, Chen Bingwen did not stop.

Over the next few days, at his instruction, Fok Kin-ning and MacLehose meticulously arranged a series of inspections of Hutchison Whampoa's core assets.

Chen Bingwen's purpose was clear: the inspection was not to find fault, but to verify the figures on the reports with his own eyes, to feel the true situation of Hutchison Whampoa's various businesses, and to supplement and improve the details of the huge integration plan in his mind.

The first stop on the inspection tour was the Hong Kong International Container Terminal in Kwai Chung.

As the vehicle entered the dock area, huge containers were stacked like mountains, and quay cranes were loading and unloading colorful containers from cargo ships in an orderly manner, while tractor-trailers shuttled across the spacious area.

The person in charge of the dock was Andrew, an experienced British manager. He had been notified in advance and was waiting downstairs in the office building with several senior foremen.

Andrew's report was pragmatic and rigorous, and he readily presented data.

He had a thorough understanding of the terminal's throughput, berth utilization rate, ship turnaround time, and operational efficiency.

As Chen Bingwen listened, he was accompanied by Andrew to a higher office platform, overlooking the entire work area.

"Mr. Chen, berths one and two are currently operating at near full capacity, especially with the rapid increase in ships on the Far East-Europe route."

We are applying for permission to expand berth number three. If approved, this will increase throughput capacity by 40%.

Andrew pointed to a piece of land in the distance that was being reclaimed from the sea.

Chen Bingwen nodded and asked, "How does its operational efficiency compare to the ports in Singapore and Kaohsiung?"

After a moment's thought, Andrew said frankly, "Our single-machine operation efficiency is not bad, and in some aspects it is even ahead."

However, there is still room for improvement in overall customs clearance efficiency, informatization level, and the convenience of intermodal transport. In particular, during nighttime operations and holidays, insufficient manpower at customs and quarantine facilities can sometimes affect ship schedules.

Chen Bingwen understood.

Hardware is the foundation, but the efficiency of the soft environment is the key to future competitiveness.

He noticed that many of the trailers at the dock were old models and emitted black smoke.

"Are there any plans to upgrade the tractor unit?"

"There are preliminary plans, but the cost of changing them is very high, and the budget approval process has been slow," Andrew replied.

Chen Bingwen didn't say anything more, but kept it in mind.

It seems that not only shipyards and factories, but also docks need financial investment to upgrade equipment and improve efficiency.

But this money must be spent. The port is a golden goose that lays golden eggs; we can't let it lose its feathers because we're stingy with our investment.

After leaving the pier, Chen Bingwen went to see several large warehouses of Junyicang in Kowloon Bay.

Compared to the port's efficiency and modernity, this place even seems somewhat outdated.

The warehouse manager is an old-fashioned Chinese manager who knows the types of goods and warehouse locations like the back of his hand, but when it comes to modern and information-based warehouse management systems, he seems a bit clueless.

Although computers were still a rare commodity at the time, some large corporations had already begun to use computers extensively for inventory management and logistics tracking, but this trend had clearly not yet reached the traditional warehouses under Hutchison Whampoa.

Chen Bingwen noticed that many warehouses still relied on manual bookkeeping, and most of the forklifts were old models.

He realized that the value of Junyi Warehouse lay in the prime land and warehouse space it occupied, but its operating model urgently needed to be upgraded.

If a modern warehouse management system can be introduced and integrated with the port's business system to achieve "port-warehousing-distribution" integration, the value will be greatly enhanced.

This is not just a matter of investing funds; it also requires a change in management thinking and the introduction of professional talent.

In the following days, Chen Bingwen's inspection schedule was very full.

During his inspections of Hutchison Properties and Metropolitan Properties, Chen Bingwen focused more on land reserves and projects under construction.

At the construction site of North Point and Fu Centre, he inquired in detail about the project's planning, costs, and sales expectations.

When Chen Bingwen saw the huge plot of land at the Honghuangpu Shipyard, he stood there for a long time.

This coastal land boasts an excellent location and enormous development potential.

But he wasn't just thinking about building luxury homes to sell for money.

He plans to build a comprehensive industrial park here, integrating modern industrial plants, research and development centers, supporting residential and commercial facilities.

This requires substantial funds and long-term investment, but once completed, it will become a crucial support for Hutchison Whampoa's future industrial foundation, with long-term value far exceeding that of simple real estate development.

During his inspection of the Anderson Taiya Quarry, Chen Bingwen was more concerned about resource reserves and environmental protection.

Stone is the foundation of infrastructure, but with urban development, the environmental pressure on the quarrying industry will increase.

He instructed those in charge to plan ahead, increase investment in environmental protection, and begin studying land transformation and utilization plans after the depletion of quarry resources.

During each inspection, Chen Bingwen was accompanied by Wei Li, Huo Jianning, Mai Lisi, and the heads of relevant business lines.

He asked very specific questions, but rarely gave instructions on the spot; he listened and observed more.

His silence made the accompanying management team somewhat nervous, but Chen Bingwen knew in his heart that it would be foolish to give orders rashly before fully understanding the situation.

He needs time to process this firsthand information.

Back in his office at the Weiye Building in the evening, Chen Bingwen often worked late into the night, reviewing the inspection notes compiled by Huo Jianning and Mai Lisi and the supplementary materials submitted by various companies.

He recorded the problems he discovered and the ideas he came up with one by one in his notebook.

After several days of inspection, he gained a more intuitive and profound understanding of Hutchison Whampoa's asset status, operational level, and existing problems.

Hutchison Whampoa's advantages are obvious.

The assets are of high quality, especially in terms of ports, land and retail channels.

It has a solid foundation and a large number of skilled workers and technical personnel.

However, its disadvantages are equally prominent.

The organization is bloated, and management efficiency needs to be improved.

Some equipment is aging and needs to be replaced.

The subsidiaries have poor business synergy and internal resources have not been effectively integrated.

The company is facing tight cash flow and significant debt pressure.

More importantly, the management team has a relatively conservative mindset and lacks the drive to innovate and explore new avenues.

Chen Bingwen closed his notebook and leaned back in his chair.

The idea of ​​integration became clearer and clearer in his mind.

First, we must concentrate our resources on developing our three core businesses: port terminals, high-quality real estate, and retail networks, and make them bigger and stronger.

Ports need to accelerate expansion and equipment upgrades to improve efficiency;

Real estate development should focus on prime locations, and high-standard planning should be implemented for prime land parcels.

Retailers need to accelerate integration and expansion, and optimize their supply chains.

Secondly, it involves divesting, closing, or merging non-core, long-term loss-making, or uncertain businesses to recoup funds and reduce burdens.

For example, some small trading companies and technologically backward manufacturing plants.

Finally, we must vigorously promote internal collaboration.

The port's trucking business can be integrated to form a unified logistics fleet, prioritizing internal needs.

Hutchison Power can supply electricity to its own factories and docks at preferential rates.

The logistics of Watsons and ParknShop can be handled by the integrated warehousing and logistics system.

Finally, capital means are used to optimize the asset structure.

We are considering spinning off high-quality businesses for future listing and financing for further development.

For non-performing assets, sell them and realize cash as soon as possible.

This integration plan involves a wide range of issues and affects many interests, making its implementation extremely complex and difficult.

But Chen Bingwen was confident. His confidence stemmed from his grasp of future trends and his ample financial reserves.

A few days later, Chen Bingwen convened a small high-level meeting in the conference room of the Weiye Building. Only Huo Jianning, Mai Lisi, Fang Wenshan, and Li Ming, who had just returned from North America, attended.

Chen Bingwen first listened to Li Ming's report on the latest situation in the North American market.

The "Leap Forward Plan" continues to generate buzz, with sales of the Pulse series climbing steadily and the market outlook looking very promising. However, Li Ming also mentioned new challenges.

Coca-Cola and PepsiCo have significantly increased their R&D and marketing investment in the functional beverage sector. Although they have not yet launched direct competing products, the competition is becoming increasingly fierce.

Chen Bingwen was not surprised and instructed Li Ming to consolidate the distribution channels, increase brand investment, and accelerate new product development to maintain the competitive advantage.

"The situation in North America is good, but we cannot relax."

"The competition has only just begun," Chen Bingwen said, then changed the subject, "Today we'll mainly discuss the integration of Hutchison Whampoa and Whampoa."

I've looked around these past few days, and there are many problems, but the opportunities are even greater.

Integration needs to be quick, but it must not be chaotic.

I have a preliminary framework —

He elaborated on the approach of focusing on core businesses, divesting non-core businesses, and promoting internal collaboration.

"Jianning, you lead the finance and strategy departments to come up with a list of non-core assets and a divestiture plan within a week, prioritizing those that have been losing money for a long time and are unrelated to the main business."

Assess which businesses can be sold, which can be shut down, how much capital needs to be recovered, and create a timeline.

"Understood, Mr. Chen." Huo Jianning nodded.

"McLeigh, you are responsible for international business and capital operations, with a focus on studying the feasibility and timing of spinning off the port business for listing."

At the same time, we will assess which promising businesses could be brought in as strategic investors or through joint ventures.

"Okay, boss."

"Director Fang, you are in charge of fund allocation. Ensure cash flow security during the integration period. Funds recovered from asset sales should be prioritized for reducing debt and investing in core businesses."

"clear."

"Li Ming, you and your North American team cannot let your guard down."

Pulse is our cash cow; we can't afford to let it slip.

In addition, we have begun researching the European market, particularly the regulations and distribution channels for functional beverages in the UK, Germany, and France, in preparation for our next step in market expansion.

"Yes, Mr. Chen!"

After the meeting, Chen Bingwen kept Fang Wenshan behind alone.

"There's something I need you to do quietly."

"Please speak, Mr. Chen."

Please gather information on HK Electric and CLP Power, focusing on their shareholding structure, major shareholders, asset status, profitability, and future investment plans.

Please provide more details, but without alerting the outside world.

Chen Bingwen gave the instructions.

Chen Bingwen's words caused a flicker of surprise in Fang Wenshan's eyes: "Mr. Chen, are you thinking of—?"

"It's good to be prepared for a rainy day," Chen Bingwen said calmly. "Electricity is fundamental to people's livelihood and the lifeblood of economic development."

In the future, if we want to expand our real economy, energy security is key.

Let's first find out what the situation is and see if there's an opportunity.

"I understand, I will get it done as soon as possible." Fang Wenshan noted it down.

After Fang Wenshan left.

Chen Bingwen picked up the documents for Hutchison Power and began to read them.

Holding a controlling stake in a power company not only safeguards one's own industrial development but also provides stable cash flow and significant social influence; its strategic value far exceeds that of a mere commercial project.

But this move is difficult. Both HK Electric and CLP are long-established British-owned companies with complex and intertwined relationships, requiring excellent timing and strategy.

Now we're just making our moves and waiting for the right opportunity.

A few days later, accompanied by Fok Kin-ning, Chan Ping-man inspected Hutchison Power’s Sha Tin Power Plant in the New Territories.

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Hutchison Power's power plants are not large in scale, but their operations are stable, and their electricity supply business generates stable revenue.

Chen Bingwen was not only interested in the immediate profits; he was thinking about the future.

Hong Kong's electricity demand is growing rapidly, and the two monopolistic giants, CLP Power and HK Electric, are firmly established, but there are still opportunities.

If Hutchison Power can be expanded, or if it has the opportunity to participate in the capital operations of HK Electric or CLP Power in the future, it will undoubtedly greatly enhance its influence in Hong Kong's infrastructure sector.

This is a move that requires a great deal of time and patience to plan, but he doesn't mind making a move early.

On the way back to the city after inspecting Hutchison Power, Chen Bingwen said to Huo Jianning: "Jianning, have you noticed that our existing businesses, whether it's docks, warehouses, or power plants, are all heavily reliant on electricity?"

Electricity costs will be a major component of future operating costs. Huo Jianning nodded: "Yes, Mr. Chen. Especially if the Red Plot is to be developed into an industrial park according to your plan, a reliable power supply is of paramount importance."

Looking at the street scene outside the window, Chen Bingwen slowly said, "Therefore, we cannot be satisfied with just being an electricity user."

We need to find a way to get involved in this industry, even if it's starting small. Hutchison Power is small, but it's a good starting point and springboard. Have your people investigate whether Hutchison Power has the potential to expand, or whether it can participate in the Hong Kong government's future power supply project tenders, even if it's just a small consortium.

Huo Jianning replied, "Okay, Mr. Chen!"

Chen Bingwen nodded and closed his eyes to rest.

He knew in his heart that energy planning was a long-term plan that would take ten or even several decades and could not be rushed.

But it is always better to start sowing now than to dig a well when you are thirsty.

Meanwhile, Li Ka-shing was not idle at the headquarters of Cheung Kong Holdings.

Zhou Jinqian was standing in front of his desk reporting to him: "Mr. Li, Chen Bingwen has been working non-stop these past few days, thoroughly examining Hutchison Whampoa's core assets."

It looks like a major restructuring is in the works.

Li Jiacheng snorted coldly: "Young man, you have quite the appetite. Trying to get fat in one bite, aren't you afraid of choking?"

How many Hutchison Whampoa shares do we have in our hands now?

"It's close to 13%. The acquisition cost is five percentage points higher than the market price on average."

Li Jiacheng pondered for a moment and said, "Continue to absorb it, but don't make it too obvious, inhale slowly."

Also, when will Hutchison Whampoa hold its first new board meeting?

Zhou Jinqian glanced at the schedule: "It's tentatively scheduled for next Wednesday."

Li Jiacheng thought for a moment, then said, "Okay. I'll go and meet this new chairman then."

A few days later, on Wednesday, the atmosphere in the conference room of Hutchison Whampoa's headquarters building was somewhat delicate.

This was the first formal board meeting since Chen Bingwen took over.

The directors took their seats one after another around the rectangular conference table.

In addition to existing directors such as Wei Li, Huo Jianning, who recently joined the board, sat to the left of Chen Bingwen.

Li Jiacheng replaced Zhou Jinqian as a director and sat at the table, his face calm and revealing no emotion.