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

Chapter 256 Pressure 4K (Seeking monthly votes, recommendations, and subscriptions!)

"A separate listing?"

Ling Peiyi was somewhat surprised. "Mr. Chen, while Watsons is a high-quality asset, is it large enough to be listed independently?"

"It's not enough now, but we need to look at the problem from a developmental perspective."

"Chen Bingwen explained, "Watsons currently has over seventy stores on Hong Kong Island."

My goal is to expand the number of stores to 300 and achieve annual revenue exceeding HK$5 million within three years.

He paused, letting the numbers settle in everyone's minds.

Fang Wenshan subconsciously calculated the revenue and store growth rates in his mind, his brows furrowing slightly; this goal was extremely challenging.

"Three hundred stores? Within five years?" Ling Peiyi blurted out. She was in charge of food and beverage and had a direct understanding of the difficulty of expanding terminal channels. "Mr. Chen, isn't this expansion speed too fast?"

Site selection, staff training, and supply chain management are all major challenges.

"Not good." Chen Bingwen shook his head, his gaze sweeping over everyone. "The next one or two decades will be a golden age for the retail industry to expand rapidly."

Whoever occupies a favorable position first will gain the initiative.

We must seize this window of opportunity.

What he didn't say was that now is the best time to position oneself for the crazy expansion and consolidation of the retail industry in the coming decades.

Ma Shimin's eyes gleamed as he keenly grasped the key point: "Mr. Chen, do you mean that Watsons' expansion should not only rely on opening its own stores, but also on mergers and acquisitions?"

"That's right." Chen Bingwen nodded in agreement. "Relying solely on one's own accumulation is too slow."

Southeast Asia, especially Singapore, Malaysia, and Thailand, has many small and medium-sized chain pharmacies and personal care stores.

These are all potential targets.

Leveraging Sugarheart Capital's cash cow businesses, we will conduct strategic acquisitions to rapidly build a regional network.

Huo Jianning pondered for a moment and said, "The acquisition and integration is quite difficult. Cultural differences and management integration are all challenges."

"Therefore, a professional team and a clear integration strategy are needed."

Chen Bingwen picked up the conversation, "Mr. Ma, you need to focus on preparing for this."

A dedicated mergers and acquisitions integration department could be established to attract talent with international experience.

Furthermore, Watsons' expansion must be closely integrated with our core product lines.

He looked at Ling Peiyi and said, "The Pulse series of functional beverages, as well as functional chewing gum, electrolyte water, and other products, should become the core categories for attracting customers and increasing the average transaction value in Watsons stores."

Channels and brands need to empower each other.

Li Ming couldn't help but interject: "Mr. Chen, if Watsons expands rapidly in Southeast Asia, is there any reference value for our North American market?"

Could we consider acquiring some small, regional convenience store chains as well?

"The idea is good, but the priorities are different," Chen Bingwen analyzed. "Coca-Cola and Pepsi have a very deep-rooted presence in the North American market, and the channel barriers are high."

We will first focus on building our brand with our products, prioritizing channel partnerships, and then consolidating our distribution channels in lower-tier cities to avoid direct competition with Coca-Cola and Pepsi.

With the Southeast Asian market landscape still evolving, this is the perfect time for us to build our own distribution channels.

This is an important distinction.

"If Watsons were to go public independently, the valuation model would be very different," said McLeish thoughtfully.

As part of a conglomerate, its value may be underestimated.

After the spin-off, as a pure retail company, if it can demonstrate high growth potential, its price-to-earnings ratio will be quite considerable.

The key is to establish a solid concept for an Asian health and beauty retail platform.

"That's exactly right," Chen Bingwen nodded in affirmation. "Therefore, future expansion will depend on store image, product structure, and..."

Service standards must be standardized, moving towards professionalization and platformization. It can't just be about simply selling goods.

He turned to Ma Shimin: "This is the work you need to focus on next."

On the one hand, we need to continue expanding in Hong Kong, Macau and Southeast Asia, and on the other hand, we need to focus on developing the European market.

Hutchison Whampoa has a business foundation in Europe, and it should make full use of this advantage.

Huo Jianning then chimed in, "If Watsons were to go public independently, Hutchison Whampoa would be able to focus more on infrastructure and real estate, making its asset portfolio clearer."

"That's right. This is a deepening of the dual-platform strategy. Sugar Capital focuses on consumer brands, Hutchison Whampoa focuses on infrastructure, and Watsons, as a professional retail platform, works together while also developing independently."

As the discussion deepened, everyone's understanding of the future development direction of Sugar Heart Capital (Chen Ji Foods) became increasingly clear.

After the meeting, Ma Shimin deliberately stayed behind to have a private conversation with Chen Bingwen.

He knew that Watsons' independent listing plan would be a major turning point in his career and the best opportunity to prove his abilities.

Chen Bingwen gave him a clear strategic direction and full trust; now it's up to him to see how well he executes it.

Time quietly slipped into April 1980.

Chen Bingwen did not have much time to immerse himself in the blueprint for Watsons' future listing.

A more pressing and direct task concerning cash flow lay before him: dealing with that massive London gold position.

With a principal of HK$900 million and leveraged three times, totaling nearly HK$2.7 billion in risky positions, they bet on gold futures.

This represents almost the majority of the working capital that Sugarheart Capital and Chenji Foods can currently access, and even includes some of the initial proceeds from the sale of Qingzhou Yingne Cement business.

Success or failure hinges on this moment.

In order to keep abreast of the latest developments in the London gold market, Chen Bingwen specially dispatched a team of traders to be stationed at the London Gold Exchange to monitor the gold market in real time.

The person in charge of the team was a British man named David Smith, who had many years of experience in commodity trading and was recommended by MacLeod.

"David, what's the current situation with gold prices in London?" Chen Bingwen asked directly, without any pleasantries.

"Mr. Chen, the price is still rising, and the fluctuations are very drastic," David's voice came through the overseas phone. "The London midday fixing price is currently around $630 per ounce."

Market sentiment was extremely euphoric, with the Iranian hostage crisis and the situation in Afghanistan being the main driving forces.

However, the volatility is extremely high, and a reversal could occur at any time.

Chen Bingwen silently did some mental calculations.

At $630, compared to his initial average cost of just over $350 when he first established his position, the unrealized profit has exceeded 80%, an astonishing absolute amount.

But this is still a distance from the historical high point he remembers.

He knew that the real madness was yet to come, but the risks were accumulating rapidly.

"Continue to monitor the situation closely, especially any developments in the political situation," Chen Bingwen instructed. "If there is any important news, no matter what time it is in London, call my office or home immediately."

There are people on duty here 24 hours a day.

"Understood, Mr. Chen. My team and I will keep a close eye on the market," David solemnly promised.

After hanging up the phone, Chen Bingwen sat back in his chair and rubbed his temples.

He knew he was taking a huge gamble.

Although they have the advantage of being "prophetic" and knowing the general direction and peak area, the specific market sentiment and the instantaneous fluctuations that may be caused by breaking news can change the trend.

He cannot let his guard down completely; he must remain vigilant at all times.

Over the next few days, Chen Bingwen spent most of his time in the office, and the telephone became his closest working partner.

He even turned down several unnecessary social engagements, focusing all his attention on the fluctuating gold price line.

That day, when Fang Wenshan came in with the latest financial statements, he saw Chen Bingwen staring intently at the world map on the wall, with London marked on the map by a red thumbtack.

"Mr. Chen, this is the consolidated financial statement from last month. The cash flow is good, and payments from the North American market are coming in very promptly."

Fang Wenshan placed the documents on the table.

Chen Bingwen turned around, walked behind his desk and sat down. He quickly flipped through the reports, focusing on the cash balance and short-term liabilities.

"Very good. Maintaining ample cash flow may prove very useful in the future."

"Understood." Fang Wenshan nodded, hesitated for a moment, and then asked, "Mr. Chen, isn't the risk in London too great?"

With triple leverage, if the price moves in the opposite direction—

"I know the risks," Chen Bingwen interrupted him, saying calmly, "High risk, high reward."

This is a once-in-a-lifetime opportunity; we must seize it.

Prepare contingency plans to ensure that even in the event of extreme volatility, we can maintain our margin and prevent forced liquidation.

"Yes, I have had the finance department conduct a stress test. Unless the price of gold drops by more than 15% in a single day, our margin is safe."

However, given the current market sentiment, the likelihood of such a significant drop is extremely low.

"Don't let your guard down. When the market goes crazy, anything can happen."

Chen Bingwen instructed, "Furthermore, this matter must be kept strictly confidential, and only a few core members like you should know about it."

"Don't worry, Mr. Chen." After Fang Wenshan left, Chen Bingwen once again turned his gaze to London on the map.

This high-stakes gamble wasn't just about huge profits; it was about accumulating the crucial funds needed for future acquisitions of Hutchison Whampoa and realizing his business empire blueprint. He couldn't afford to lose.

A few days later, London gold prices continued to climb amid fluctuations, breaking through the $650 mark.

The market is filled with an almost manic optimism, ignoring any negative news and viewing any pullback as a buying opportunity.

However, this one-sided upward trend changed around January 10th.

That afternoon, Xie Jianming hurriedly knocked on Chen Bingwen's office door, his expression not as relaxed as before.

"Mr. Chen, there's news from London! Rumors are circulating that the United States may be secretly contacting Persia through a third party in an attempt to resolve the hostage crisis."

Although the news was unconfirmed, panic selling occurred in the market, and gold prices plummeted from $658. Now—

It's down to $645 now!

Chen Bingwen's heart skipped a beat. The drop of more than ten dollars, although not a large sum compared to the increase, was still significant at this high level, where any slight disturbance could trigger a chain reaction.

"Any news from David?"

David said the exchange was in chaos, with many short-term speculative positions being liquidated. However, he personally judged that this was just a technical correction and the fundamentals had not changed. He suggested that people wait and see, and even consider buying more shares on dips.

Xie Jianming relayed the opinions from London.

Buy on dips?

Chen Bingwen sneered inwardly.

At such high leverage and prices, this is tantamount to playing with fire.

He has an informational advantage, knowing that the peak of this market trend is just around the corner, and any pullback could be the start of a decline, not an opportunity.

"Tell David that his job is to keep a close eye on the market and sources of information, and to provide objective information, not to give investment advice."

Chen Bingwen said sternly, "We won't replenish a single share!"

We will continue to monitor the situation closely, especially any statements from US officials.

"Yes!" Xie Jianming was startled by Chen Bingwen's decisiveness and nodded quickly.

Over the next few hours, gold prices fluctuated around $645, with a fierce battle between bulls and bears.

Chen Bingwen sat in his office, not processing documents as usual, but just sitting quietly, his fingers unconsciously tapping lightly on the table. His inner state was far from calm as he appeared.

He knew that the crucial moment might be approaching.

Such large fluctuations are often one of the signals that the market has peaked.

He must remain absolutely calm and clear-headed.

In the evening, the latest closing price came out at $646, barely managing to stabilize the situation.

Rumors of contact between the United States and Iran were indirectly denied by the White House spokesperson, which calmed market sentiment slightly.

But Chen Bingwen was even more on edge.

He knew that the final sprint was about to begin!

In the following days, gold prices surged again, breaking through the $670, $700, and $750 levels in succession.

The market is rife with extreme rhetoric such as "gold prices have no upper limit" and "inflation is out of control, and paper money is becoming worthless."

On January 18, the price of gold in London reached a historic high of $800.

An unreal, frenzied atmosphere permeated the entire investment department.

The unrealized profit is already an astronomical figure.

Even the usually composed Fang Wenshan seemed somewhat dazed when he came in to report.

"Mr. Chen—this—this profit—" He held the latest calculated floating profit report, his hands trembling slightly.

Chen Bingwen was deeply shocked when he saw the astonishing figure on the report.

This was a rate of wealth accumulation he had never experienced in either of his two lifetimes.

A strong temptation was assaulting his reason: close the position and secure the profits!

That's so much money, you couldn't spend it all in several lifetimes!

But he forcibly suppressed the thought.

He knew that the peak of history had not yet been reached.

Closing your position now is certainly safe, but it might mean missing out on the last, and most profitable, upward move.

At the 800 level, every dollar increase brings absolute profits that were unimaginable at the previous lows.

"It's not the right time yet."

Chen Bingwen took a deep breath and said to Fang Wenshan, "Inform Xie Jianming and David in London that from now on, they should report prices and important news every hour."

All traders have cancelled their vacations and are on standby.

"Mr. Chen, the risk is too great! If we close the position now, the profit will already be gone—" Fang Wenshan couldn't help but want to advise against it.

"I know the risks!" Chen Bingwen interrupted him, "but this might be your only chance. Execute the order."

"—Yes." Fang Wenshan saw the unwavering determination in Chen Bingwen's eyes and swallowed back the rest of his words.

Chen Bingwen knew he was walking on a tightrope, with a bottomless abyss below.

But he had no choice; having chosen this path, he had to see it through to the end.

This tug-of-war between dependence on historical trends and the enormous risks of reality puts him under immense psychological pressure.

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