Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 233 The Sugar Daddy 6K (Seeking monthly votes, recommendations, and subscriptions!)
He understood Li Ming's concerns about the "Leap Forward Plan".

As the head of the North American frontline, his primary responsibility is to monitor sales data and channel penetration.

But as the helmsman of the entire group, he cannot focus solely on the gains and losses of a single city or region in North America; he must consider the overall picture and the long term.

Once the giants recognize the value of the functional beverage market, the competition will instantly escalate to another level.

At that time, the competition will not only be about taste, distribution channels, or price, but also about the impression a brand leaves on consumers' minds.

Just like the success stories he had seen in his previous life:

When it comes to gift-giving, many people will reflexively think of Brain Gold (a health supplement).

When it comes to brain-boosting products, Six Walnuts comes to mind;

When we think of holidays, we think of Lulu Almond Milk.

From malted milk powder in the past to almond milk, Brain Gold, Six Walnuts and so on, these products are not irreplaceable, but through long-term and concentrated marketing, they have successfully occupied a specific position in consumers' minds and formed a strong brand barrier.

What Pulse Thunder aims to do is firmly establish in the minds of global consumers the label of the most potent energy drink and the essential for challenging limits.

For drivers who need to work through the night, students preparing for exams, and young people seeking excitement, the first thing that comes to mind when they think of needing a pick-me-up is a can of Pulse or Pulse Thunder.

The "Leap Forward Plan" is the most direct and forceful means to achieve this goal.

He wants to make Pulse Thunder synonymous with ultimate energization.

After finishing with the "Leap Forward Plan," Chen Bingwen reviewed several more documents.

As the workday was drawing to a close, the intercom light on the desk came on, and Ali's voice came through: "Mr. Chen, Director Fang and Manager Huo are here. They're here to discuss Qingzhou Yingni's interim financial report."

"Please invite them in." Chen Bingwen sat up straight.

A moment later, Vincent Fang and Canning Huo walked in one after the other, both with relaxed expressions on their faces.

Holding a document in his hand, Huo Jianning spoke first:
"Mr. Chen, there's been progress."

"Oh? In what aspect?" Chen Bingwen put down his pen.

"The shares of Cheung Kong Holdings," Huo Jianning reported happily. "Through an intermediary, we contacted the Bermuda fund that holds 2.1% of Cheung Kong Holdings' shares."

They are preparing to restructure their assets and intend to sell their stake in CK Asset Holdings.

Initial contact revealed that their asking price was 5% above the market price.

“A 5% premium…” Chen Bingwen pondered.

The premium is within an acceptable range. The key is that it allows you to acquire 2.1% of the shares in one go, which is far more discreet and efficient than acquiring them piecemeal in the secondary market.

Moreover, if they can successfully acquire this 2.1%, together with the previously acquired shares, their stake in Cheung Kong will be close to 5%.

While this is still not enough to threaten Li Ka-shing's controlling stake, it is sufficient as an important bargaining chip and deterrent.

At crucial moments, this nearly 5% stake might play a pivotal role.

"We can discuss it. You will personally oversee the process, operate through an offshore company, and be sure to keep it confidential."

Try to keep the premium below 3%, but if the other party insists, 5% is also acceptable.

The key is to be fast, to ensure a clean process, and to avoid any unforeseen complications.

"Understood! I'll arrange the next round of negotiations right away." Huo Jianning replied readily.

Then, he placed the document in his hand on Chen Bingwen's desk. "Mr. Chen, the preliminary financial results for the first half of the year for Qingzhou Yingni are in, and they are even better than we expected."

The internal restructuring was very effective, with management expenses decreasing by 18% and cash flow improving significantly.

Chen Bingwen took the preliminary financial accounting report for the first half of the year from Huo Jianning and quickly browsed through the key data.

The report shows that after a period of swift and decisive internal restructuring, the company's management expenses have decreased significantly by 18%, and cash flow has improved markedly.

Excluding the impact of the revaluation of the Hung Hom Crane Garden site, the company's main cement business generated a net profit of approximately HK$15 million in the first half of the year.

Although the profit margin is not high, it is stable, and the annual profit is expected to reach around HK$30 million.

For a long-established company that has just undergone a change in controlling stake and internal integration, this performance is quite impressive.

Huo Jianning, standing to the side, added: "Mr. Chen, the cement business itself has a low gross profit margin, but its cash flow is stable."

If we include a portion of the projected future development profits from the Hung Hom Crane Garden site in the current financial statements using a suitable valuation model, we can significantly improve the profitability of the financial statements, which will have an immediate stimulating effect on the stock price.

Chen Bingwen tapped the "net assets" column on the report.

He understood what Huo Jianning meant.

In 1979, the Hong Kong stock market was far less strictly regulated than it would be in later years, and its accounting standards were very flexible.

Many companies "create" profits through asset revaluation, especially listed companies with large land reserves.

The core asset of Qingzhou Yingni is the huge Heyuan land in Hung Hom.

"Is it technically feasible to include the revenue from the revaluation of the land in the financial statements?" Chen Bingwen asked, as he needed to confirm the compliance boundaries of the operation.

Although the rules are more relaxed at this time, one should not go too far and give others a handle to use against one.

“It’s entirely feasible.” Fang Wenshan took over the conversation. As the CFO, he was very familiar with the rules. “Currently, the generally accepted accounting standards allow for the fair value revaluation of investment properties. The resulting increase can be included in owners’ equity, and under certain conditions, it can even be reflected in the income statement.”

We don't need to be too aggressive. We can use the valuation report issued by the surveying firm for the Heyuan plot to reflect a portion of the increased value in the interim financial report as "property revaluation gains".

This makes the financial statements look good, conforms to current business practices, and is less likely to be questioned.

Chen Bingwen pondered for a moment.

This practice essentially involves including future real estate development profits in the current financial statements in advance, which is a financial technique.

However, this move is of great strategic necessity at this stage, as it is urgently needed to boost Qingzhou Yingni's stock price, improve the company's market image, and raise funds for potential future financing, such as for the development of the Heyuan plot.

A listed company that demonstrates strong profitability and huge asset potential will be in a more advantageous position, whether seeking loans from banks or issuing new shares in the future.

“Let’s do it this way.” Chen Bingwen made the decision. “Director Fang, you will be personally responsible for controlling the overall scale and disclosure. You can be a bit conservative and prudent. We need to let the market see the value, but we can’t leave people with the impression of excessive hype.”

The primary goal of the interim financial report is to demonstrate a solid foundation for core business operations, while simultaneously achieving a significant increase in earnings per share and net asset value through asset revaluation.

"Understood!" Fang Wenshan and Huo Jianning replied in unison.

"Before the official release of the financial report, the relevant data and plans must be kept strictly confidential and only known to core personnel."

Chen Bingwen instructed, "After the release, have the public relations department coordinate appropriate marketing efforts, focusing on highlighting the company's asset value and future transformation prospects."

We need this market rally to boost Qingzhou Yingni's market capitalization.

After the two left, Chen Bingwen leaned back in his chair.

Manipulating financial statements is a common tactic in the capital market; the key lies in the degree and timing.

He hopes that this meticulously crafted interim report will act as a catalyst to drive Qingzhou Yingni's stock price up again, further consolidate his control over the listed company, and reserve more ammunition for future capital operations.

Over the next few days, all tasks proceeded smoothly and in an orderly manner.

Good news came from Huo Jianning's side regarding the acquisition of Cheung Kong Holdings shares.

After negotiations, the Bermuda fund finally agreed to transfer its 2.1% stake in CK Asset Holdings to Sugar Heart Capital through an off-exchange block trade at a price 3.5% higher than the market price.

"Mr. Chen, the formalities have been completed and the funds have been transferred." Huo Jianning reported over the phone, "Including what we acquired in the secondary market before, our current shareholding in Cheung Kong has reached 4.9%, which is very close to the 5% threshold that requires public disclosure."

“Well done,” Chen Bingwen affirmed. “Keep quiet for now and don’t buy any more shares. The 4.9% shareholding is a good one; it has a certain weight, but doesn’t require an announcement for the time being, so we can keep it as a strategic asset.”

"Understood. I will keep a close eye on Cheung Kong's movements."

……

Meanwhile, in North America, the grid-based ground promotion strategy began to show results.

Following Chen Bingwen's "rural-to-urban strategy," the focus of North America's grid-based ground promotion efforts was placed on the "lower-tier markets" and specific channels that Coca-Cola and Pepsi had relatively neglected.

Li Ming's ground promotion team, with elite ground promotion personnel sent from Hong Kong Island as consultants, deeply penetrated into gas station convenience stores along highways, independent grocery stores in communities, 24-hour convenience stores, gyms, as well as nightclubs and bars.

These are the places where the target customers of the Pulse series of products gather.

The ground promotion team worked meticulously and thoroughly.

They helped the store organize the shelves, placing "Pulse Thunder" in a prominent position.

Post posters with a strong visual impact.

Conduct short-term promotional activities.

They even recommended to bars the method of using "Pulse Thunder" to mix signature cocktails.

This kind of "ground warfare" that is close to the end user may not result in large sales at a single point, but it adds up to a lot and has very high customer loyalty.

Feedback data shows that the repurchase rate of the Pulse series products is much higher in these channels than in traditional channels.

The newly acquired factory in Illinois had to work three shifts to produce in order to fill the market demand created outside of Coca-Cola's mainstream channels.

However, Li Ming also mentioned a concern in his latest weekly report.
Although Coca-Cola and Pepsi have not yet launched products directly competing with the Pulse series, nor have they openly blocked it in the distribution channels, they still have to consider the previous bottle cap patent licensing agreement.

However, Coca-Cola and Pepsi have significantly increased their promotional efforts for traditional carbonated beverages. Furthermore, their own-brand "sports drinks" or "energy supplements," with similar packaging but different tastes, have quietly appeared on the shelves of several large national supermarket chains, priced very low. This is clearly a test of market reaction and consumer acceptance, preparing for a possible large-scale launch of competing products. Li Ming worries that this is merely the prelude to a large-scale counterattack by Coca-Cola and Pepsi.

Once they've figured out the market dynamics and the best formula through these small-scale tests, they'll likely launch mature competing products quickly and leverage their vast distribution networks and marketing budgets to completely crush the competition.

Chen Bingwen was not surprised after reading Li Ming's report.

This is the normal state of business competition.

The previous "quiet" of the two giants is all the more alarming.

Their tentative actions precisely demonstrate that "Pulse" and "Pulse Thunder" have successfully attracted their high attention, and may even have already been internally initiated as targeted product development projects.

Now it's a competition of speed and time window, seeing who can build brand barriers and user loyalty faster.

He gave Li Ming instructions: "Don't pay too much attention to the competitor's exploratory products, and don't panic and get caught up in a price war."

We will continue to implement our established strategies of 'grid-based ground promotion' and 'precise channel penetration', cultivate niche markets, and consolidate the reputation and preferred position of the Pulse series products among core user groups.

At the same time, the 'Leap Forward Plan' needs to be accelerated; we need that sensational event to firmly establish the brand's global image and high-end positioning.

Meanwhile, the "Leap Forward" team, led by public relations manager Li Weiming, overcame various difficulties and made substantial progress.

Li Weiming ultimately selected Rick Steven, a top hang glider with rich experience and exceptional courage, to pilot this historic crossing mission.

Rick Stevens has shown great enthusiasm and confidence in challenging the Grand Canyon, believing it will be a milestone in the history of hang gliding.

Both parties signed a strict agreement, which included substantial insurance coverage and confidentiality clauses.

Rick Stevens has begun acclimatization training in areas with similar climate and terrain conditions, with a professional photography team hired by Sugar Heart Capital filming him throughout to collect high-definition footage for later documentary and promotional video production.

Meanwhile, negotiations with NBC for broadcasting rights have also gone much more smoothly.

Producers from NBC Sports were very interested in the exclusive live broadcast of "the first human paraglider crossing of the Grand Canyon," believing it to be visually stunning and newsworthy.

Both parties have reached a preliminary framework agreement on key terms such as live streaming rights fees, advertising revenue sharing, and documentary copyright.

NBC has also begun to assemble a professional live broadcast team and use its influence to assist in communication with relevant U.S. airspace management departments.

Meanwhile, Li Weiming's team communicated closely with agencies such as the Federal Aviation Administration and the National Park Service to apply for special airspace flight permits and activity permits, and paid high special fees for this and purchased exorbitant insurance policies to cover all possible risks.

Everything is progressing towards the established goal. Although it has cost a lot, Chen Bingwen believes that this investment is crucial for seizing the commanding heights of global brands.

As we entered late September, the summer heat on Hong Kong Island had not yet completely subsided, but the film market was ignited by a single movie.

Jackie Chan's self-directed and self-starring film "Young Master" has grossed an astonishing HK$1300 million in just one month since its release. It has not only firmly secured the title of the year's box office champion and broken many box office records in Hong Kong film history, but has also shaken the entire Hong Kong film industry.

Compared to his capital operations that often involve hundreds of millions, this figure, with profits only amounting to a few million, is indeed not a large sum of money. However, its symbolic significance is extraordinary.

In his office, Chen Bingwen looked at the final box office report sent by Weilong Films and a faint smile appeared on his face.

This marks the true establishment of Dragon Pictures in Hong Kong, and the golden brand of Jackie Chan has begun to shine.

Chen Bingwen closed the report and said to his secretary, Ali, who was waiting on the side, "Make arrangements. I will host a banquet at the Mandarin Oriental Hotel tomorrow night to celebrate the great success of 'Junior Brother Takes Action'."

We invited the entire crew, as well as several bosses and media friends we know well.

"Understood, I'll take care of it right away."

Ali nodded in agreement and immediately went to make the arrangements.

Chen Bingwen held this celebration banquet not only to celebrate Cheng Long's success, but also as an opportunity.

This is an opportunity to show the outside world that Chen Bingwen can not only make waves in the capital market, but also lead the trend in the cultural and entertainment field.

This can subtly enhance his public image and soft power, neutralizing the overly aggressive and purely businessman image he has recently gained due to real estate and capital operations, paving the way for future industrial development and brand building.

He knew that in Hong Kong Island, cultural influence and media power could sometimes bring unexpected benefits.

On Saturday night, the banquet hall of the Mandarin Oriental Hotel was brightly lit and filled with the clinking of glasses.

The celebration banquet for "The Young Master" was a grand affair, with the main cast and crew, Golden Harvest executives such as Raymond Chow and Raymond Ho, familiar media figures, and some business friends all invited.

Jackie Chan was undoubtedly the focus of the evening. Dressed in a brand-new suit, his face beaming with barely suppressed excitement, he stood at the entrance of the banquet hall with his fellow apprentices, including Yuen Biao and Yuen Wah, receiving congratulations from everyone.

"Ah Long, you really nailed this time!"

Congratulations! You've broken a record!

"The next movie will definitely be even more successful!"

Cheng Long beamed with joy and thanked him repeatedly.

As the biggest boss of Weilong Films, Chen Bingwen is naturally the focus of everyone's attention.

Many people came over to talk to him, and their words were full of admiration for his vision and courage.

"Mr. Chen, you're truly a Midas touch! Even your movie-making skills are amazing!"

"Chen Sheng has a keen eye. With Ah Long following you, it's hard for him not to become famous."

Chen Bingwen smiled and responded appropriately, neither being overly humble nor arrogant.

He knew in his heart that some of these people were genuinely congratulating him, but most were just trying to get closer to him or find out what was going on.

At this moment, Raymond Chow walked over with a warm smile: "Mr. Chen, congratulations! 'Junior Brother Takes the Field' has become a sensation in Hong Kong, and Dragon Films has a bright future!"

"Thank you very much. Golden Harvest Cinemas also deserves credit for this," Chen Bingwen said with a smile.

"If Mr. Chen comes up with any good projects in the future, don't forget about our cinema chain."

"Definitely, we will definitely cooperate if the opportunity arises."

In the midst of the pleasantries, a small commotion arose at the entrance of the banquet hall.

Ms. Mona Fong, the general manager of Shaw Brothers, entered the banquet hall accompanied by her assistant.

Her arrival was somewhat unexpected.

At that time, there were three cinema chains on Hong Kong Island: Shaw Brothers, Golden Harvest, and Golden Princess.

Golden Princess is not a production company; it simply screens independently produced films from Hong Kong Island and is the weakest of the three cinema chains.

Shaw Brothers and Golden Harvest, as two major Hong Kong film production companies, were natural rivals, each with its own production and distribution business.

"The Young Master" was screened in Golden Harvest theaters and did not go through Shaw Brothers' distribution channels.

Sir Run Run Shaw, the head of Shaw Brothers, did not attend in person, but sent Mona Fong, a heavyweight figure, to represent him. The implications of this are quite intriguing.

Fang Yihua walked straight to Chen Bingwen with a polite business smile on her face: "Mr. Chen, congratulations on the film's great success."

Sixth Uncle (Run Run Shaw) has other important business tonight, and specifically asked me to come on behalf of Shaw Brothers to extend my congratulations to you and Mr. Cheng Long.

This was the first time Chen Bingwen had met Mona Fong face-to-face in a formal setting. Although they had spoken by phone before about the overseas distribution rights of "Drunken Master," they had never met in person.

“Miss Fang, you’re too kind. Thank you so much, Uncle Six and Shaw Brothers, for your congratulations. It’s an honor to have you here.” Chen Bingwen shook hands with her, his tone composed. “Shaw Brothers is a role model in the industry, and we still have a lot to learn from them.”

Fang Yihua smiled, her gaze sweeping across the bustling venue, and said meaningfully, "Although Mr. Chen came from another field, his actions are extraordinary from the very beginning."

The film market is getting more and more lively now; competition drives progress, after all.

I hope that Shaw Brothers and Dragon Pictures will have opportunities to collaborate in the future.

“Of course, the market is huge and there are many opportunities. As long as the project is suitable, I believe there will be opportunities for cooperation.” Chen Bingwen’s answer was watertight.

After exchanging a few words, Fang Yihua excused herself, saying she needed to greet other acquaintances, and headed elsewhere.

Watching her departing figure, Chen Bingwen knew in his heart that Shaw Brothers was sending a signal to Dragon Film Studio.

On the one hand, it acknowledges your success, and on the other hand, it explores the possibility of future cooperation or competition.

This also means that, after the success of "Young Master", the Dragon Films brand has truly entered the vision of Hong Kong film industry giants and is no longer an insignificant new player.

The emcee announced the start of the banquet and invited investor Chen Bingwen to the stage to give a speech.

The audience fell silent, and all eyes turned to them.

Chen Bingwen walked onto the stage, adjusted the microphone height, glanced at the entire audience, and said with a smile, "Thank you all for coming tonight to celebrate the success of 'Junior Brother Takes the Field'."

The HK$1300 million box office is the result of Jackie Chan and the entire crew's hard work, proving the charm of Hong Kong films and demonstrating that audiences will support a well-made film.

He paused for a moment, then continued, "When I invest in movies, I'm not only interested in the box office revenue, but also in the influence of movies as a culture, and the potential of hardworking and talented filmmakers like Jackie Chan."

In the future, I will continue to support Hong Kong films and help discover more good stories and good actors.

His speech was brief and lacked excessive emotional appeal, but his message was clear: he is optimistic about the industry and will continue to invest in it.

Applause erupted from the audience, especially from those in the film industry, who gave particularly enthusiastic applause.

Having another powerful investor is a good thing for the industry.

Then Cheng Long went on stage, much more emotional, and thanked many people. Finally, he once again expressed his deepest gratitude to Chen Bingwen: "Without Mr. Chen, there would be no Cheng Long today!"
Mr. Chen is not only my boss, but also my mentor!

These words prompted reporters to keep snapping photos.

(End of this chapter)