In Hong Kong, we build a global business empire

Chapter 684 Li Jiacheng: Regret? No, I have never regretted it!
“Hey, Brother Bao, how could I not understand these principles? But our situations are different. When I successfully acquired the crucial 22.4% stake in Hutchison Whampoa held by Huifeng Bank, I was already no longer in control of my own destiny!” Li Jiacheng’s voice was tinged with bitterness.

He knew that completely tying himself to Huifeng Bank was a last resort, as only in this way could he satisfy his ambitious aspirations.

Before taking over Hutchison Whampoa, he was already one of the five most famous real estate tycoons in Hong Kong.

Li Ka-shing first acquired the American-owned Yung-Ko Company, and then defeated Hongkong Land Group. With a strategy of cash plus profit sharing, he successfully won the bid for the development rights of the properties above the Central and Admiralty MTR stations, and has become a shining new star in Hong Kong's real estate industry.

But what can we do about it?
At that time, although he had established himself in the business world and achieved a certain status, he was still far behind the top billionaires.

Shipping magnates like Tung Chee-hwa, Jardine Matheson, Swire, and HSBC all far surpassed Li Ka-shing in wealth and power.

When an opportunity presented itself to take control of one of the four most famous foreign trading companies—Hutchison Whampoa—Li Ka-shing embarked on this path without hesitation, despite the need to sacrifice a significant portion of his profits.

Because he knew in his heart that this was the perfect opportunity for him to overtake others and join the ranks of Hong Kong's top tycoons.

If he relies solely on his Cheung Kong Holdings, Li Ka-shing finds it difficult to predict how much time it will take, or even whether he will have a real chance of joining the ranks of Hong Kong's top tycoons.

Is it deeply intertwined with HSBC, the dominant force in Hong Kong's financial sector?

Such a once-in-a-lifetime opportunity is something many people would kill for!
After forging a business relationship with Huifeng Bank, his life was like being equipped with a powerful engine, advancing rapidly and rising quickly. He soon gained firm control of Hutchison Whampoa and became its rightful master.

With his two behemoth companies, Cheung Kong Holdings and Hutchison Whampoa, he quickly established himself in Hong Kong's business world and successfully joined the ranks of top conglomerates.

However, life is unpredictable. He never dreamed that his former biggest backer, Huifeng Bank, which was a powerful force in Hong Kong's financial industry and even the entire business world, would be defeated and forced to retreat in defeat by a young Chinese entrepreneur.

Today, Huifeng Bank is in an even worse state, having been acquired by another British bank.

His "ally," who was deeply intertwined with Huifeng Bank, suddenly found himself in an extremely awkward situation.

After all, although his company's funding was alleviated and the financial risk was eliminated after Standard Chartered Bank took over Huifeng Bank, he had already completely broken ties with Lin Haoran because of what had happened before.

Despite the fact that there was no communication between the two sides on the surface, and not even the slightest sign of a declaration of war, there was no indication of any communication between them.

However, the moment he picked up his pen and wrote that highly persuasive letter to all his partners and made it public, he had actually stood completely on the opposite side of Lin Haoran.

This letter did indeed bring many tangible benefits to Huifeng Bank.

This not only prompted many affiliated partners of Hutchison Whampoa and Cheung Kong Holdings to choose to cooperate with HSBC, but also triggered British-owned companies such as Swire Pacific and CLP Power to follow suit, and these companies also publicly expressed their support for HSBC.

For a time, Huifeng Bank seemed to have regained its vitality and almost had the ability to fight back.

When Li Jiacheng did all this, it was already destined that he and Lin Haoran would become complete adversaries.

Although Lin Haoran ultimately defeated Huifeng Bank with superior methods and strategies.

However, it is undeniable that during the fierce business battle between Bank of East Asia and Huifeng Bank, Li Ka-shing resolutely took a gamble and chose to side with Huifeng Bank, which created considerable obstacles for Bank of East Asia under Lin Haoran's control.

Bao Yugang naturally knew that Li Jiacheng and Huifeng Bank had an unusual relationship, but he was unaware of what kind of agreement Huifeng Bank had signed with Li Jiacheng.

After all, these were secrets between Huifeng Bank and Li Ka-shing.

Although Bao Yugang is also a member of the board of directors of Huifeng Bank, in reality, his position as a director of Huifeng Group is more of a symbolic title, and he is not given access to many important secrets within the group.

Therefore, after learning of Li Jiacheng's purpose, Bao Yugang pondered for a moment and said, "Brother Li, in my opinion, your current situation is actually quite easy to resolve."

My relationship with Haoran is fairly amicable. If you come with me to visit Haoran, sincerely apologize to him, and explain that you will transfer the financial businesses of Hutchison Whampoa and Cheung Kong Holdings to companies under Haoran's control, I think he will definitely forgive your previous actions.

I know you had no choice at the time, and I think Haoran can understand. In this way, you can not only turn enemies into friends with Haoran, but you might even have the opportunity to become business partners!

After saying that, Bao Yugang looked at Li Jiacheng with a puzzled expression. Normally, this method is not difficult to come up with, so why would Li Jiacheng come all the way to him for advice?
Upon hearing Bao Yugang's words, Li Jiacheng slowly shook his head.

He knew in his heart that doing this would indeed ease his relationship with Lin Haoran, and perhaps he could even become an important partner of Lin Haoran in the future.

But the problem is, he simply can't do it.

Although Huafeng Bank has now been acquired by Standard Chartered Bank, the contract he signed with Huafeng Bank is still legally binding.

The only difference is that the management of this contract has changed from senior executives at Huifeng Bank to senior executives at Standard Chartered Bank.

After all, as long as Huifeng Bank does not actually go bankrupt and be liquidated, he will never be able to get rid of his intricate and complicated relationship with Huifeng Bank.

He knows very well how he acquired Hutchison Whampoa shares from Huifeng Bank at a low price.

“Brother Bao, if things could be resolved so easily, I wouldn’t have come all this way to ask you for advice. To tell you the truth, Hutchison Whampoa and Cheung Kong Holdings, especially Hutchison Whampoa, will never break off their cooperation with Hui Fung Bank, unless… unless Hutchison Whampoa is no longer under my control!” Li Jiacheng sighed and said with a bitter smile.

Upon hearing this, Bao Yugang, though not explicitly told by Li Jiacheng, had already vaguely guessed the hidden story behind it.

Paul Yiu-kong began his collaboration with Hui Fung Bank in 1956, and it has lasted for 25 years.

He could roughly guess the tactics that Huifeng Bank usually used.

Even without Li Jiacheng saying it outright, he could guess that the contract must be full of harsh and inescapable clauses.

These terms were like invisible shackles, binding Li Jiacheng tightly. Even though he clearly saw the huge benefits that reconciliation and cooperation with Lin Haoran could bring, he could only be trapped in the complicated relationship with Huifeng Bank, unable to move.

Two years ago, when Bao Yugang learned that Li Ka-shing had acquired 22.4% of Hutchison Whampoa's shares from Huifeng Bank for just over HK$600 million, and that 20% of the HK$600 million could be paid upfront with the remaining funds deferred for two years, he found it utterly unbelievable.

How could Hutchison Whampoa's share price be so worthless?

It should be noted that Hutchison Whampoa had already had a professional assessment conducted at the time, and the group's net assets alone amounted to HK$58 billion.

Logically, the acquisition price should be at least higher than its net asset value.

But now, for just over HK$600 million, they can acquire 22.4% of the shares, and even defer payment. This is not just selling to Li Ka-shing at half price; it's practically giving it away for free.

Furthermore, Huifeng Bank seemed worried that Li Ka-shing lacked funds, so it only required him to pay an initial payment of over HK$100 million before handing over the shares.

All of this, no matter how you look at it, seems inexplicably strange.

Not to mention, under the restructuring by Wayne Lai, Hutchison Whampoa had already turned from loss to profit and its business situation had improved significantly.

Such a high-quality company, even if it had been offered for sale at a higher price at the time, would have undoubtedly become a highly sought-after commodity, easily fetching a premium.

However, Huifeng Bank acted completely out of the ordinary, transferring Hutchison Whampoa shares to Li Ka-shing in a manner that was almost like selling or giving them away.

Looking back now, it's clear that there must have been some undisclosed transactions between Huifeng Bank and Li Ka-shing.

Those harsh contract terms may be the heavy price that Li Jiacheng has to bear behind this seemingly "windfall" deal.

No wonder even Li Jiacheng himself felt caught in a dilemma and at a loss.

Although he now controls two major listed companies, Hutchison Whampoa and Cheung Kong Holdings, and is quite influential in the business world, once he offends Lin Haoran, his future will certainly not be easy.

After all, Hong Kong isn't that big, and its top business circles are even smaller.

Today, Lin Haoran's achievements are far more than just acquiring Hongkong Land Group and becoming the richest man in Hong Kong.

Li Ka-shing is not overly worried about becoming Hong Kong's richest man, as the accumulation of wealth involves many factors.

However, when Lin Haoran became a financial industry tycoon, controlling three banks—East Asia Bank, Heng Sheng Bank, and Dao Heng Bank—and maintaining a leading market share in the financial market, Li Jiacheng became truly afraid.

At this moment, Lin Haoran has grown into a business tycoon whom he can only look up to.

On the surface, Li Ka-shing is also a top business tycoon in Hong Kong, but the gap in strength between tycoons is far greater than imagined.

Putting aside other things, the combined strength of his two major companies is unmatched even by Landsea Group alone, not to mention the numerous large enterprises that Lin Haoran also controls.

Given such a disparity in strength, it would be extremely unwise for him to become enemies with Lin Haoran.

If Lin Haoran intends to target his two major companies, he probably won't have much ability to resist.

"Brother Li, did you ever regret reaching that agreement with Huifeng Bank?" Bao Yugang didn't mention any solutions, but instead asked with great interest.

"Regret? No, I have never regretted it!" Li Jiacheng shook his head without hesitation and said firmly. Without the strong support of Huifeng Bank back then, he would hardly have achieved his current prestigious status.

Although Cheung Kong Holdings has developed well, the size and value of Hutchison Whampoa alone are enough to be equivalent to several Cheung Kong Holdings.

Although Li Ka-shing had always coveted high-quality British-owned enterprises, under normal circumstances, it would have been impossible for him to successfully acquire Hutchison Whampoa.

That is why he has never regretted his previous cooperation with Huifeng Bank.

If fate allowed him to make a choice again, he would still choose to reach that agreement with Huifeng Bank without hesitation.

Even now, facing such a complex and difficult situation, he is perfectly clear that the decision he made back then was the key step that allowed him to move to a higher level in the business world and a major turning point that propelled his career forward.

However, at this moment he has no choice but to confront the numerous crises arising from this cruel reality.

Looking at Li Jiacheng's resolute and unwavering expression, Bao Yugang couldn't help but sigh inwardly.

This is utterly unrepentant!
He had always known that Li Jiacheng was an ambitious and decisive man, which was perfectly understandable.

When he first met Li Jiacheng, he keenly sensed that this person was destined for greatness and had limitless potential, so he got to know him early on and they later became close friends.

But who could have imagined that Li Jiacheng's ambition, which once helped him rise to power, would now push him into such a difficult and dilemma-ridden situation?

"Brother Li, your current situation is indeed quite tricky. Haoran and I do have a good personal relationship, but that doesn't mean I can force him to do something he doesn't want to do."

The way you acted back then, even if it were me, I would think it was a bit excessive. It's like two places are at war, and you keep sending weapons and ammunition to one side. Now you want the other side to forgive and forget about you. This approach is indeed very unethical.

"You still refuse to take the initiative to ease the tension with him. Aren't you deliberately making things difficult for me and putting me in a difficult position?" Bao Yugang frowned and sighed.

Li Jiacheng smiled bitterly, rubbed his tense temples with both hands, and slowly said, "Brother Bao, how could I not want to take the initiative to ease the tension with Lin Haoran? But the current situation is like being stuck in a huge quagmire, and every move I make may sink me deeper."

The constraints of that contract with Huifeng Bank are far more complex than you think. If I act rashly, I'm afraid all my hard work over the years will be in vain.

Bao Yugang nodded slightly. Although he was not entirely clear about the details of the contract, he could sense the difficulty in Li Jiacheng's tone.

His act of clinging to someone's leg means that once he's on, he can't let go.

He pondered for a moment and said, "Brother Li, have you tried to start with the contract itself? See if you can find some loopholes or room for negotiation. After all, Huifeng Bank has now been acquired by Standard Chartered, and perhaps the new management will have a different attitude towards this contract."

Li Jiacheng shook his head helplessly: "Brother Bao, how could I not have thought of this? After learning about the acquisition of Huifeng Bank, I contacted Standard Chartered Bank immediately."

However, they remained adamant, clearly stating that they would inherit and strictly enforce all terms of the original contract, leaving no room for negotiation. Moreover, they seemed to be using this contract to further control my influence at Hutchison Whampoa in order to achieve their own business objectives.

In reality, no matter who it's given to, they wouldn't give it up.

After all, both Cheung Kong Holdings and Hutchison Whampoa are now among the top ten listed companies.

The commercial value and influence of these two companies are enough to make any capital force drool.

After acquiring Huifeng, Standard Chartered Bank naturally wouldn't easily let go of the excellent opportunity to control the financial business connections between the two companies.

They will certainly keep Li Ka-shing firmly on the track of serving their interests by strictly enforcing the contract, and further expand their sphere of influence in Hong Kong's business landscape.

"Brother Li, to be honest, I really don't know how to resolve the conflict between you and Haoran. You must know Haoran's character. As long as you have done nothing wrong to him, he will never be your enemy without reason."
But if you actively oppose him, he's actually quite vengeful; the fates of Jardine Matheson and Huafeng Bank serve as cautionary tales.

Bao Yugang had no intention of gloating at this moment. After all, he and Li Jiacheng had known each other for more than ten or twenty years and were old friends. But faced with the current situation, he really didn't know how to help.

Bao Yugang's words made Li Jiacheng even more upset.

"However, don't worry too much. Your situation is too complicated. Although I can't help you mediate, Standard Chartered Bank is a force to be reckoned with. If Haoran really makes a move against you, Standard Chartered Bank will not stand idly by."

"You've simply switched to an equally powerful backer. I think if Haoran wanted to touch you, he would consider whether it would offend Standard Chartered Bank." Seeing Li Jiacheng remain silent, Bao Yugang smiled and comforted him.

“You’re right. I, Li Jiacheng, don’t rely on cooperating with Lin Haoran for a living. Although my company has some joint development projects with the Land Group, the share is not large. Under normal circumstances, I really don’t need to worry too much.” Bao Yugang’s words made Li Jiacheng feel much more at ease.

However, Li Jiacheng had no idea that when the stock market crashed, Lin Haoran had secretly instructed his subordinates to buy up a large number of shares in his two companies, and now the shareholding was already quite considerable.

If he knew about this, he probably would have been restless long ago.

"Brother Bao, I won't bother you any longer. I'll find some time to have a long and pleasant conversation with you after you return to Deep Water Bay!" Seeing that he couldn't get any practical advice from Bao Yugang, Li Jiacheng didn't stay any longer and bid farewell to Bao Yugang.

"Alright, Brother Li, take care." Bao Yugang stood up to see him off.

Watching Li Jiacheng's departing figure, Bao Yugang frowned slightly.

This Brother Li, although ten years younger than him, is indeed a man of considerable ability.

However, making such a choice to achieve one's own ambitions is rather irrational.

"The path of business must be taken one step at a time. However, this is his personal choice, so what does it have to do with me?" After a while, Bao Yugang couldn't help but chuckle to himself.

After Li Jiacheng returned to his headquarters office in the Chinese Building, he had barely sat down when there was a knock on the door.

"Please come in."

"Mr. Li, I have something I'd like to ask for your opinion on." The one who came in was Richard Xin, a senior executive who had stayed on from the Wayne era. This former deputy of Wayne had now been appointed as CEO by Li Jiacheng.

Because Li Ka-shing was very clear that he had only been in charge of Hutchison Whampoa for a short time, and if his management team rushed to take over Hutchison Whampoa completely, then Hutchison Whampoa would inevitably run into problems sooner or later.

Therefore, Li Ka-shing still entrusts these former Hutchison Whampoa generals with important responsibilities.

"Oh? Tell me more." Despite his frustration, Li Jiacheng suppressed his emotions and patiently asked Richard Xin.

“Our ParknShop supermarkets currently have several locations in the Kowloon Peninsula, but according to our observations, our old rival Wellcome supermarkets seem to be planning to open new stores in the surrounding area as well.”

"In this way, our ParknShop supermarkets will face fierce competition even before they open, and it will be very difficult to make a profit in the future. So I would like to know Mr. Li's thoughts on whether we should stop opening these new stores." Richard said, handing a report to Li Jiacheng.

Upon hearing this, Li Jiacheng was slightly taken aback.

ParknShop supermarkets are a key project of Hutchison Whampoa.

Since ParknShop opened in Stanley in 1973, it has grown rapidly in the following seven or eight years, with the number of chain stores increasing dramatically. It has become a strong player in Hong Kong's supermarket industry, second only to Wellcome Supermarket in strength.

Wellcome Supermarket is a supermarket brand under Dairy Farm International, a subsidiary of Hongkong Land Group. It has a longer history and more stores than ParknShop.

Wellcome's actions now seem to be targeting ParknShop!

"What are your thoughts?" Li Jiacheng asked, looking up at Richard Xin after finishing reading the report in his hand.

"Wellcome Supermarket's actions were clearly intentional. In fact, since the beginning of this year, ParknShop has launched several large-scale promotional campaigns to attract more customers."

Not long after, Wellcome's various branches launched a price war in response to us, and now they are targeting us in our new location. They are clearly retaliating against us for initiating the price war.

"I think we can't back down. If we back down this time, we'll probably have to keep making concessions in the future, which will be extremely detrimental to the long-term development of ParknShop supermarkets!" Richard said hurriedly.

Richard's words made Li Jiacheng hesitate.

Originally, he had already thoroughly offended Lin Haoran because of the Huifeng Bank incident.

Now, with its businesses facing aggressive targeting from Wellcome Supermarket, Li Jiacheng's already troubled mind is becoming even more tangled.

Whether Lin Haoran was behind this or not, he had no idea.

If Lin Haoran really was behind it, then things are going to get complicated.

Li Jiacheng leaned back in his chair, his fingers tapping lightly on the table, his eyes revealing contemplation and seriousness.

He slowly began to speak: "Wellcome's move is indeed ill-intentioned, but if we back down now, ParknShop will find it difficult to continue expanding its market in Hong Kong. Since we're going to fight, let's fight!"

After learning from Bao Yugang that he and Lin Haoran could not possibly mend their relationship, Li Jiacheng decided to give up.

Since the relationship cannot be improved, why bother giving Lin Haoran face?
(End of this chapter)