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

Chapter 255 Business Group 4K (Seeking monthly votes, recommendations, and subscriptions!)

After the year-end banquet, all the senior management of Sugar Heart Capital and Chenji Foods, who were working outside the company, were present in the top-floor conference room of Weiye Building, filling the long conference table to capacity.

The Hong Kong Island headquarters includes Vincent Fang, Canning Fok, Simon Ma, and Joseph Koo.

Li Ming and Mai Lisi, who returned from North America.

Ling Pei-yi and Gao Zhen-hai rushed back from the mainland.

And the head of Dragon Pictures.

Chen Bingwen sat in the main seat, his gaze sweeping over every face.

These are the core pillars of his business empire.

The year-end party is for giving rewards; today's meeting is the real event.

The company has expanded too rapidly, with its business spanning the globe, and the original management methods are no longer keeping up with the pace.

He needs to take advantage of this opportunity to have everyone present to reorganize the structure, clarify responsibilities, and unify thinking.

"Everyone's here, let's start the meeting." Chen Bingwen didn't waste any pleasantries and went straight to the point: "Thank you all for your hard work over the past year."

The results speak for themselves, so I won't go into details.

The main reason I called everyone back today is to discuss problems and look to the future.

He gestured, and his secretary, Ali, distributed prepared documents to everyone.

It was a newly printed organizational restructuring plan and annual performance appraisal framework, still smelling of ink.

He picked up the proposal and briefly explained the core idea: "As the holding parent company, Sugar Heart Capital is only responsible for strategic investment, financial management, appointment and dismissal of senior executives, and risk control."

Specific business operations are delegated to the respective business units.

"Four major business groups were established: First, the Chen Kee Food and Beverage Business Group, which is headed by Ling Pei-yi and oversees the production, branding, and sales of food and beverages worldwide."

Li Ming was appointed General Manager of the North American Region, reporting to Ling Peiyi.

Gao Zhenhai is responsible for expanding the mainland market.

Upon hearing this, Ling Peiyi unconsciously straightened her back a little, feeling a heavy responsibility.

Although Li Ming had to report to Ling Peiyi, he was independently in charge of the North American region and wielded considerable power.

"Secondly, the Real Estate and Industrial Investment Business Group is headed by Canning Fok."

It oversees Qingzhou Yingni (Red Plot Development), Hutchison Whampoa-related real estate projects, and future strategic industrial investments.

Huo Jianning nodded calmly. This arrangement was in line with expectations. The pressure was immense, but the stage was also broader.

"Third, the Commercial Retail and Port Logistics Business Group will be headed by Simon Murray. It will integrate the port, dock, warehousing and logistics businesses of Watsons and Hutchison Whampoa."

The goal is to build a supply chain from port to store, including a global supply chain.

A hint of excitement flashed in Ma Shimin's eyes, which gave him a great deal of room for integration and development.

Fourth, the Strategic Investment and Capital Operations Business Group is headed by Mr. McLeish.

The focus is on the divestiture of non-core businesses from Hutchison Whampoa, potential strategic acquisitions, and group-level capital operations.

A smile appeared on McLeish's face. He was very satisfied with the position that Chen Bingwen had set for him, which required a strong overall perspective and a keen sense of capital.

"Fang Wenshan will serve as the group's CFO, directly responsible to me, and will oversee the financial management and fund allocation of all business groups."

Fang Wenshan looked solemn, knowing that the position of this "God of Wealth" was crucial to the smooth flow of the entire group's resources.

"Gu Yongxian, the group's legal and risk control officer, is also directly responsible to me."

"Dragon Pictures will operate independently for the time being and will report directly to me."

After explaining the general framework, Chen Bingwen looked around at everyone and said, "This is the initial idea. If you have any opinions, please feel free to raise them now."

Once determined, it must be strictly implemented.

The meeting room fell silent for a moment as everyone processed this huge change.

After a moment, seeing that no one spoke, Chen Bingwen said, "I know that everyone may feel that the changes have come a little too quickly."

Why change it now?

Because our old model is nearing its limit.

"First of all, there's the issue of efficiency," Chen Bingwen said, holding up a finger. "Now, whether it's price reductions and promotions in the North American market, building a new production line in Hong Kong, or even adjusting Watsons stores, the reports all end up piling up on my desk."

I only have 24 hours in a day. Even if I don't sleep, I'm bound to make mistakes or delay decisions.

The business world is like a battlefield; opportunities are fleeting, and we can't afford to wait.

He looked at Li Ming and said, "Take North America for example. If Coca-Cola launches a surprise promotion, Li Ming, you have to report it up and down the chain of command. By the time my approval comes through, the best opportunity to retaliate may have already passed."

Going forward, within the established framework, you, as the North American General Manager, have the absolute authority to make such market decisions on the spot.

A glint of light flashed in Li Ming's eyes, signifying that he had gained greater autonomy and a stronger sense of responsibility.

"Secondly, responsibilities and powers are clearly defined." Chen Bingwen held up a second finger. "There is too much overlap in business now, which easily leads to disputes."

For example, if Pulse wants to enter Watsons' ParknShop supermarkets, should it contact Ma Shimin or the head of marketing at Chen Ji Foods?

It won't happen again.

Ling Peiyi, your food and beverage group should focus on making good products and strengthening the brand. How to sell through the channels is something you and Ma Shimin should negotiate.

Ma Shimin, your retail logistics group's task is to manage all terminals effectively and ensure the flow of goods.

Each person's goals are clear, and the evaluation process is also straightforward.

He paused, his gaze sweeping over Huo Jianning and Mai Lisi, "Real estate and investment are the same."

Jianning, your task is to revitalize our existing real estate resources and increase asset value.

Michael, your task is to keep an eye on opportunities outside, sell decisively when you should sell, and buy precisely when you should buy.

One focuses on internal affairs, the other on external affairs; the division of labor is clear.

"Third, and most importantly, we must cultivate talent so that the company can function even without me, Chen Bingwen."

Chen Bingwen raised his voice slightly, and his words sent a jolt through everyone present.

"The company can't rely on me to charge ahead all the time."

I hope that each and every one of you here can become a capable leader.

The divisional system is the stage we've set for you.

Show me what you're capable of.

If you do well, the company will reward you handsomely.

Only in this way can Sugarheart Capital transform from a speedboat into an aircraft carrier fleet capable of withstanding storms.

He leaned back in his chair and concluded, "Therefore, the purpose of implementing the divisional system is not to decentralize power, but to empower."

Giving you greater power is also to place greater responsibility on you.

The goal is singular: to make our reaction speed faster than our competitors, to make our professional capabilities stronger than theirs, and to ensure that our great ship sails more steadily and further.

His explanation was clear and logical, directly addressing the core pain points. It demonstrated both his decisiveness and his trust and expectations of his team members.

The doubts and anxieties that might have existed were largely replaced by a sense of excitement that they felt "highly valued and had great potential."

"The architecture is in everyone's hands. If you have any specific questions, we can discuss them now." Chen Bingwen made a "please" gesture, leading the meeting into a substantive discussion phase.

Ma Shimin spoke first: "Mr. Chen, the structure is very clear, I agree."

However, the integration of Watsons and ParknShop is not a problem, but the port and terminal businesses under Hutchison Whampoa, which were previously managed by Wynn's people, may require time to integrate personnel and processes. We hope the group can provide support.

Chen Bingwen nodded: "As expected. Integration cannot be accomplished overnight."

Huo Jianning will cooperate with you to stabilize the business first, and then gradually optimize personnel and processes.

If you encounter any obstacles, you can report directly to me and Director Fang.

I'll put in a good word with Wei Li.

After Chen Bingwen gave explicit support to the integration issue raised by Ma Shimin, the discussion atmosphere in the meeting room became more pragmatic.

Several business group leaders began exchanging views on specific issues such as the boundaries of authority and responsibility, and resource coordination.

At this point, McLeish, who was in charge of strategic investment and capital operation, raised a more macro-level question: "Mr. Chen, this business unit structure is very clear and can greatly improve operational efficiency."

I have a question about the future positioning of Hutchison Whampoa.

We've invested a lot of effort in integrating it, and what kind of entity do we ultimately hope it will become within the group?

Is it a massive asset package that needs to be digested, or a core engine with independent value?

That's a very important question.

Everyone looked at Chen Bingwen, including Ma Shimin and Huo Jianning, who had just finished their report.

One wanted to integrate Hutchison Whampoa's retail and logistics assets, while the other wanted to manage Hutchison Whampoa's real estate business. Both wanted to know the boss's ultimate plan for this long-established trading company.

Chen Bingwen gave Mai Lisi an approving look; this question had just prompted him to think more deeply.

He crossed his arms on the table and smiled, "McLeigh asked a very good question."

This is not merely a management restructuring, but a strategic move for the group's future.

He paused, letting everyone follow his train of thought, "My view of Hutchison Whampoa is by no means merely that it is an asset package that needs to be digested."

My goal is to develop it into the second largest holding platform, on par with Sugar Heart Capital, and mutually reinforcing each other.

"Mutual support?" Fang Wenshan repeated thoughtfully.

"That's right," Chen Bingwen affirmed, and began to elaborate on his idea, "Everyone needs to look beyond the simple hierarchical relationship of Sugar Heart Capital holding Hutchison Whampoa."

What I'm thinking of is a more comprehensive dual-core driven mode.

He drew two parallel circles in the air with his hand: "On the left is Sugar Heart Capital."

Its core is brand and cash flow.

Chen Ji's food and beverage business is the foundation of our business, the source of stable and strong cash flow, and our brand presence directly facing end consumers.

This part of the business focuses on innovation, market share, and profit margins.

"On the right is Hutchison Whampoa," Chen Bingwen pointed to another dotted circle. "Its core will be infrastructure and asset value."

After integration, its main business will be very clear: First, ports and logistics, which are the lifeline of trade in Hong Kong Island and even Asia, and are infrastructure businesses with monopoly and continuous growth.

Secondly, real estate and industrial investments, including land in Hongdi Plot and Junyi Warehouse, as well as other high-quality properties, are ballast assets for preserving and increasing value.

He looked at everyone, his gaze sharp: "Can everyone see the relationship between these two?"

Huo Jianning was the first to react and blurted out: "Synergy effect!"

Sugar Capital needs Hutchison Whampoa's channels and logistics to support product distribution, while Hutchison Whampoa's infrastructure and retail network also need core businesses like Sugar Capital to ensure asset utilization and cash flow!

"That's exactly right!" Chen Bingwen nodded emphatically. "This is not just about internal collaboration."

More importantly, in the future, these two platforms can operate and develop relatively independently.

He further explained, "Sugarheart Capital can continue to focus on the consumer sector, using its own cash flow to acquire and incubate more consumer brands, and even go public to raise funds, becoming a pure consumer goods holding group."

"After completing its integration and focusing on infrastructure and real estate, Hutchison Whampoa can still operate independently in the capital market by leveraging its stable asset returns and growth potential."

It can acquire overseas ports and terminals, develop large-scale real estate projects, and even spin off its high-quality businesses, such as listing its port business separately.

Chen Bingwen's vision opened up a completely new and broader perspective for the executives present.

This is no longer a simple parent-subsidiary management system, but a meticulously designed blueprint for a business empire with strong synergies and the ability to grow independently.

"In this way," Chen Bingwen concluded, "our group will have two solid legs to walk on."

One leg is Sugar Heart Capital, which targets the mass consumer market;

The other leg is Hutchison Whampoa, which boasts scarce infrastructure and a solid, stable foundation.

The two support each other while also being able to develop independently, resulting in a level of risk resistance and growth potential far exceeding that of a single business model.

He looked at Michael and Canning Huo: "So, your current integrated art project is of great significance."

This is not merely about solving the current management problems, but also about mitigating both losses and gains for the group's development over the next ten years.

He then looked at Ling Peiyi and Ma Shimin: "Your future cooperation will not only be internal collaboration, but also a strategic synergy between the two core platforms."

The council chamber was silent as everyone digested this forward-thinking and ambitious strategic concept.

They realized that their boss's vision was far grander than they had imagined.

Transforming Hutchison Whampoa into a pillar alongside Sugar Capital signifies a deeper and more patient integration and restructuring, but if successful, its future is limitless.

Fang Wenshan pondered for a moment before speaking, "Chen Sheng's idea is very forward-thinking."

However, to achieve independent operation of the two platforms, several key issues need to be addressed.

The first step is asset allocation. It needs to be clearly defined which businesses and assets will be assigned to Sugarheart Capital and which will be left to Hutchison Whampoa.

For example, Watsons is both a retail outlet and a channel for consumer brands. How should this be classified?

Chen Bingwen nodded and said, "My idea is that Watsons, as a retail network, will be spun off and listed separately within the next three to five years."

Consumer goods products under Sugar Heart Capital are sold at Watsons and settled according to market principles.

The two platforms must work together while maintaining a principle of relative independence.

Upon hearing this, Ma Shimin leaned forward unconsciously, his eyes gleaming with excitement.