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

Chapter 270 Taurine 4K (Seeking monthly tickets, recommendations, and subscriptions!)

The afternoon after returning from his meeting with the Kadoorie family at the Peninsula Hotel, Chen Bingwen went to the China Resources Building.

Zhang Jianhua's office is on the top floor, with a wide view and a distant view of Victoria Harbour.

Upon seeing Chen Bingwen enter, he warmly stood up to greet him.

"Mr. Chen, thank you for making this trip. Please have a seat." Zhang Jianhua gestured to his secretary to make tea.

"Mr. Zhang, you're too kind." Chen Bingwen sat down on the sofa and got straight to the point. "Yesterday afternoon, I met with Sir Kadoorie and his son at the Peninsula Hotel."

"oh?

How is the situation?

Zhang Jianhua asked with concern.

Chen Bingwen conveyed in its entirety the attitude of Roland Scarborough that he was willing to make contact, as well as Michael's suggestion to "start with technical exchanges."

After listening, Zhang Jianhua pondered for a moment and nodded: "The Kadoorie family's cautious attitude is understandable."

Energy cooperation, especially large-scale projects like nuclear power, is highly sensitive.

Their willingness to take this step of technical exchange is a good start.

Mr. Chen, we owe you a great debt of gratitude for your help in making this connection.

"Mr. Zhang, you're too kind. It's just my job." Chen Bingwen smiled. "As a director of Guoxin, it's only right that I do some work to help Guoxin attract foreign investment and technology in China."

As the two were talking, there was a knock on the office door, and a man in his fifties, wearing glasses and with a calm demeanor, walked in, guided by his secretary.

"Mr. Zhang, I hope I haven't disturbed you? I heard Mr. Chen Bingwen is here?" The middle-aged man said with a smile, looking at Chen Bingwen with a gentle gaze.

"Oh, speak of the devil! You've come at the perfect time, Chairman Wang." Zhang Jianhua immediately stood up with a smile and introduced the two men, "Mr. Chen, this is Mr. Wang Guangxing, one of the directors of Guoxin Company, mainly responsible for investment and cooperation in the energy and light industry sectors. Chairman Wang, this is Mr. Chen Bingwen."

"Chairman Wang, hello, I've heard so much about you."

Chen Bingwen immediately stood up and shook hands.

Wang Guangxing is one of the veterans of Guoxin Company, with extensive connections in the light industry sector, and is a truly influential figure.

"Mr. Chen, you're too kind! I should be the one who has long admired you! We've all heard about your several major moves in the Hong Kong business world. You're truly a force to be reckoned with!"

This time, your help in connecting us with the Kadoorie family has been a huge help to Guoxin. We are so grateful!

Mr. Chen, you deserve immense credit for making progress in the early stages of the Daya Bay project!

"Chairman Wang, you flatter me. I really don't deserve such praise," Chen Bingwen quickly said modestly. "I'm just passing on a message; the specific work still needs to be carried out by a professional team."

As a director of Guoxin Securities, doing these things is my duty. It's also an honor to be able to contribute to the Daya Bay project.

Wang Guangxing greatly admired Chen Bingwen's selfless attitude; he had previously heard that this young Hong Kong businessman was decisive in his work.

With his sharp eye, he is not only calm and capable, but also knows how to consider the big picture. No wonder he has risen so quickly in the Hong Kong business world.

He nodded repeatedly: "Okay, okay!"

Having a director like Mr. Chen who understands international business rules and has the country at heart is a blessing for Guoxin.

Mr. Zhang, how about we take this opportunity to briefly discuss our next steps?

"That's exactly what I was thinking," Zhang Jianhua nodded in agreement.

After the three sat down, Zhang Jianhua repeated what Chen Bingwen had told him to Wang Guangxing.

After listening to the introduction, Wang Guangxing looked at Chen Bingwen with a serious expression: "Mr. Chen, now that the Kadoorie family has given their approval, we need to hurry up and follow suit."

We plan to organize a team of power experts as soon as possible to go to Hong Kong to exchange ideas with the technical team of CLP Power.

In the future, we will inevitably need your assistance in communication to advance the project.

The Kadoorie family has been operating in Hong Kong for many years and has deep roots there. In some aspects, it would be smoother for local Hong Kong entrepreneurs to handle the communication than for us to do it directly.

"No problem," Chen Bingwen readily agreed.

He knew that Guoxin had not yet set up an office in Hong Kong Island, and his position as a "director" was perfect for playing a bridging role in projects involving significant foreign investment.

This is not only fulfilling an obligation, but also an opportunity to build connections and enhance influence within Guoxin.

The Daya Bay project is of great significance, and deep involvement in it will bring far more than just commercial benefits.

Meanwhile, the battle for electrolyte water in the Japanese market has spread like wildfire.

Otsuka Pharmaceutical's Pocari Sweat officially launched nationwide in April as scheduled.

With its strong pharmaceutical background and distribution channels, coupled with a massive marketing blitz, Pocari Sweat quickly gained prominence in major drugstores and convenience stores upon its launch, emphasizing the concept of "close to body fluids, scientific supplementation," making a powerful impact.

However, almost at the same time that Pocari Sweat was being distributed, the free giveaway campaign for "Pulse Electrolyte Water," directed by Zhao Liming, head of Chen Chi's Japanese branch, also reached its climax.

Tokyo's Shinjuku Station, Osaka's Umeda, Nagoya's Sakaecho—in all the key areas where Pocari Sweat is being promoted, Pulse's free drink stations are everywhere.

Staff in uniform enthusiastically offered chilled Gatorade electrolyte water to passersby, with the slogan: "Free samples of Gatorade electrolyte water, experience true sports hydration!"

Pulsating blue banners and free tasting stations are everywhere—in parks, sports fields, university campuses, and around office buildings.

Zhao Liming strictly followed Chen Bingwen's instructions, and the scale of the free drinks was unprecedented. The initial target of two million bottles was quickly achieved, followed by the approval of a budget for another five million bottles.

This almost insane strategy of giving away free drinks has produced remarkable results.

On the one hand, the abundance of free samples quickly popularized the concept of "electrolyte water," allowing many consumers who were previously unfamiliar with such products to taste it for the first time and experience the benefits of replenishing electrolytes.

On the other hand, this close-quarters tactic greatly disrupted Pocari Sweat's listing schedule.

The carefully planned promotions and marketing campaigns by Dajia Pharmaceutical were largely obscured and diluted by Gatorade's simple and crude "free" strategy. When consumers see Pocari Sweat priced at 130 yen in a drugstore, they may recall the Gatorade they just had for free on the street corner, making their purchase decision inevitably hesitant.

What's even more troubling is that Chen's seems to be completely disregarding costs.

The scale and duration of Pulse's free drink campaign far exceeded the scope of conventional business competition, resembling more of a war of attrition aimed at destroying the opponent's market confidence.

Tokyo, headquarters of Daiichi Pharmaceutical Co., Ltd.

Project manager Hiroshi Fujiwara looked at the latest market report delivered by his subordinates with a gloomy expression.

The report shows that Pocari Sweat's initial shipment volume met expectations, but the actual sales speed was lower than anticipated.

Market research data shows that the brand awareness and trial rate of "Pulse" surged dramatically due to the free samples offered.

"Baka! What exactly is this Chen Ji up to?"

"Aren't they afraid of going bankrupt by giving these away for free?"

Fujiwara couldn't help but mutter a curse under his breath.

This unconventional fighting style left him feeling powerless, like punching cotton.

"Section Chief, according to our investigation, Chen Ji's free drink campaign involves a huge investment, but they seem to have plenty of funds."

Moreover, the taste of their products is indeed quite competitive.

The subordinate reported cautiously.

Fujiwara forced himself to calm down.

He knew that his opponent was using capital to buy time and market space.

While Otsuka has the advantage of trust due to its pharmaceutical background, it may not be able to completely suppress this fierce competitor from Hong Kong Island in terms of channel coverage and marketing flexibility in the fast-moving consumer goods sector.

"Adjust the strategy!" Fujiwara ordered. "First, increase investment in GG on television and print media, emphasizing our pharmaceutical-grade quality control and scientific formulation, and distinguish ourselves from ordinary beverages!"

Secondly, in terms of distribution channels, we will strengthen cooperation with chain pharmacies and launch joint promotional activities.

Third, follow up with free drinks!

They give gifts, so we give gifts too!

In key areas, conduct small-scale free tasting events; we can't let them monopolize the tasting market!

Fujiwara decided to fight.

He cannot sit idly by and watch Pulse win over consumers' minds by offering free drinks.

Everyone has substantial cash reserves for pharmaceutical manufacturing, so he can afford to wait!

A fierce market battle over electrolyte water has escalated across Japan.

Wai Yip Building, Hong Kong Island.

Chen Bingwen frowned slightly as he looked at the latest financial statements sent by Fang Wenshan.

The report shows that as sales of "Pulse" energy drinks continue to climb in North America and Southeast Asia, the procurement cost of taurine, a key raw material, is rising rapidly.

"Mr. Chen, this is a summary of last month's purchases."

The import price of taurine has risen by another 5%, and Japanese supplier Mutual Industries has hinted that contract prices for the next quarter may increase by another 10%-15%.

Fang Wenshan pointed to a piece of data on the report and said.

Taurine is one of the core ingredients in functional beverages, and Chen Ji currently relies mainly on imports from Japan for its supply.

As production capacity expands, the dependence on upstream raw materials becomes increasingly prominent.

"Mutual Industry is taking advantage of our large demand to raise prices arbitrarily."

Chen Bingwen put down the report and said calmly.

The annual consumption of taurine in the "Pulse" series of functional products is around 3,000 tons, and this amount is increasing year by year.

At this time, the global taurine industry was still in its infancy. Limited by the chemical synthesis technology of taurine, the distribution of production capacity was completely different from the previous situation where "China dominated".

The global annual production of taurine is less than 10,000 tons. The three Japanese companies, Taisho Pharmaceutical, Mutual Industries, and Honjo Chemical, have a combined annual production capacity of about 5,000 tons, accounting for almost 90% of the global taurine production capacity.

Taisho Pharmaceutical and Honjo Kasei primarily use their taurine for their own purposes and do not sell it to external parties.

This has led to a situation where one industry dominates the market.

Chen Bingwen was well aware of the risks of being dependent on others for supply chain control.

If Japanese suppliers cut off supplies or significantly raise prices, it will directly impact the production and cost of the Pulse series products.

"Yes, and I understand that Mutual Industry and Dajia Pharmaceutical have a close relationship."

"We cannot rule out the possibility that they might exert pressure on us through the raw material supply chain after Pocari Sweat's IPO failed," Fang Wenshan added.

While the possibility mentioned by Fang Wenshan cannot be ruled out, taurine is a niche product. However, Chen Bingwen believes that while commercial competition is one thing, as a supplier, Mutual Industry should prioritize its own commercial interests.

However, this did serve as a reminder to him that he shouldn't put all his eggs in one basket.

"We can't always be controlled by others," Chen Bingwen said to Fang Wenshan. "Besides Japan, let's see if there are any alternative suppliers in Europe or the United States. Even if the price is a little higher for the time being, we need to establish alternative channels. We can't put all our eggs in one basket."

"Understood, I'll arrange for the purchasing department to handle it immediately."

After Fang Wenshan left, Chen Bingwen pondered for a moment before dialing Zhang Jianhua's number.

In his memory, China did indeed later become a major producer of taurine in the world.

Although it is still the early 80s, relevant research in China may have already begun.

If we can intervene early and provide financial assistance, we can accelerate the research and development and industrialization process.

If successful, not only will the cost of taurine be significantly reduced, but the supply chain will also be completely self-reliant and controllable.

It can also help the development of the domestic chemical industry, which is a win-win situation.

"Mr. Zhang, there's something I'd like to ask you to inquire about for me—"

After the call was connected, Chen Bingwen expressed his hope to find out through his connections with China Resources or Guoxin whether there were any domestic research institutions engaged in the research of taurine production technology, and stated that Sugarheart Capital was willing to provide funding and technical support to jointly tackle the problem.

Zhang Jianhua, on the other end of the phone, was very interested after hearing this: "Mr. Chen, your idea is excellent!"

Supporting domestic scientific research and breaking foreign monopolies is a good thing that benefits the country and its people!

I'll have my people investigate immediately. Chairman Wang Guangxing should know more about the situation in the light industry system. I'll let you know as soon as I have any news.

After hanging up the phone, Chen Bingwen felt a little more at ease.

It's always better to have multiple options than to put all your eggs in one basket.

A few days later, Chen Bingwen received a phone call from Wang Guangxing himself.

"Mr. Chen, there's been some progress on that taurine thing you asked Mr. Zhang to inquire about last time!"

Wang Guangxing said happily, "I had someone check, and it seems that there is a research group at the Changchun Institute of Applied Chemistry, Chinese Academy of Sciences, that is conducting research on the synthesis of taurine using the ethylene oxide method. It is said that the small-scale test has been successful and they are currently working on the pilot-scale test. The expert in charge is surnamed Huang, named Huang Jichang."

Chen Bingwen's heart skipped a beat. Changchun Institute of Applied Chemistry, Huang Jichang—this matched the information in his memory.

He quickly asked, "Chairman Wang, that's wonderful! Would it be convenient for us to make an arrangement to visit Professor Huang and discuss the possibility of cooperation?"

"Of course it's convenient! I'll have the comrade in charge of light industry technology at Guoxin contact the Changchun Institute first and schedule a time."

I'll go to Changchun with you then, so you can see it for yourself!

Wang Guangxing readily agreed.

He greatly admired Chen Bingwen's willingness to invest in domestic scientific research and break the foreign technological monopoly, which was in line with Guoxin's mission of introducing technology and developing national industries.

"Thank you so much, Chairman Wang! I'll wait for your news."

97

After hanging up the phone, Chen Bingwen immediately called Ling Peiyi and told her to prepare, as he might need to go to the mainland soon to investigate the taurine project.

At the same time, he also instructed Vincent Fang to expedite the search for alternative suppliers in Japan and to begin collecting publicly available technical information on taurine production processes from around the world, in preparation for possible domestic cooperation.

He was thinking that if he could use funds and some external technical support to obtain priority purchasing rights or technology sharing after the success of domestic projects, it would be extremely beneficial to Chenji's long-term development.

This is not just a business deal, but a strategic investment.

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