Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 37 Unlimited Business Opportunities (Please add to your favorites, vote for monthly tickets, recommend this chapter, and follow along!)

Bangkok Bank's headquarters are located in the heart of Bangkok's financial district, and its thick granite exterior exudes the prestige of Thailand's first bank.

Accompanied by a translator, Chen Bingwen and Fang Wenshan entered the credit department's meeting room.

Suraya, the senior vice president in charge of the Golden Elephant loan case, stood up to greet them, "Mr. Chen, Mr. Fang, it's a pleasure to meet you."

He reached out and shook hands with the two men, saying with a hint of scrutiny, "The change in Golden Elephant's shareholding was very sudden."

“This is simply a market-driven activity, Mr. Suraya.”

Chen Bingwen responded politely.

"Sugarheart Capital's takeover of Golden Elephant is an impressive move."

However, what I am concerned about is how Sugar Capital plans to handle the 576 million baht (approximately 120 million Hong Kong dollars) loan that Golden Elephant owes to Pangu Bank.

Furthermore, the 30% stake in Golden Elephant held by our bank as collateral is now worth far less than the loan principal plus interest due to the sharp drop in its share price.

Chen Bingwen didn't beat around the bush and got straight to the point: "Mr. Surayut, Bangkok Bank is the backbone of Thailand's financial system, and the future of Golden Elephant Bank is closely related to the bank's interests."

I am here today to provide a solution that minimizes bank risk and maximizes potential returns.

Pangu Bank has released the 30% stake in Golden Elephant held by the Somchai family from its pledge and converted it into equity, becoming the second-largest shareholder of Golden Elephant Foods!

After speaking, Chen Bingwen gestured to Fang Wenshan to place the relevant documents on the conference table.

Surayut leaned back in his high-backed chair, tapping the armrest with his fingertips: "Debt-to-equity swap?"
Mr. Chen, Jinxiang's current situation—low stock price and unclear prospects—is tantamount to the bank passively holding a high-risk asset and bearing greater uncertainty in the future.

Banks prefer to recover cash or dispose of collateral.

Golden Elephant's stock price plummeted, and the value of the collateral was less than 60% of the loan amount. According to the contract, we have the right to auction off the shares.

Chen Bingwen chuckled lightly, "Mr. Suraya, you know better than I what the consequences would be if, given the current plummeting stock price and the swiping of negative news, 30% of the shares were forcibly sold on the secondary market."

Golden Elephant's stock price will collapse instantly, becoming worthless!

The amount of money the bank can ultimately recover is probably less than a fraction of the loan principal!

This is a lose-lose situation. The bank suffers heavy losses, Golden Elephant collapses completely, and Pangu Bank will also be burdened with the reputation of being a crippling company, which will affect its reputation.

Debt-to-equity swaps can not only protect the interests of banks, but may even allow them to profit in the future.

Chen Bingwen knew that neither Golden Elephant Foods nor Sugar Heart Capital were child's play in the eyes of Pangu Bank, which had a market value of 380 billion baht.

Instead of going around in circles, it's better to explain the situation directly to Suraya.

If they can persuade Pangu Bank to convert its debt to equity, it will send a positive signal to the outside world and boost the stock price of Jinxiang Foods.

Although his main purpose in acquiring Golden Elephant was to solve the raw material supply chain problem for Chenji Dessert, it remains to be seen whether Golden Elephant Foods is a listed company or delisted.

For him, there was really no difference.

However, if they can retain Pangoal Institution as a major partner, it will greatly benefit the business layout of Golden Elephant and even Chen Bingwen in Southeast Asia.

Seeing that Surayud had not yet made a statement, Chen Bingwen looked at Surayud and said frankly, "Sugarheart Capital needs a strong local partner like Pangoal Institution to jointly stabilize the overall situation of Golden Elephant and restore market confidence."

This is not a request for debt forgiveness, but an invitation for Pangoal Institution to join us as a strategic investor in uncovering the true value of Golden Elephant, which has been obscured by market panic, and achieving a win-win situation.

Suraya leaned back in her chair, looking intently at Chen Bingwen.

The young Hong Kong businessman's clear logic, pragmatic attitude, and well-defined plans for Golden Elephant Assets far exceeded his expectations.

He had also read the bank's internal report, and as Chen Bingwen had said, the forced disposal of the collateral did indeed result in losses that, while not huge, had far-reaching consequences.

Moreover, as Thailand's largest bank, it bears the responsibility of maintaining stock market stability.

There are more than twenty listed companies in total, and each one is extremely valuable.

If Golden Elephant is delisted as a result, the losses for Pangu Bank will be far more than just money.

After a long silence, Surayud finally spoke, his tone much gentler: "Mr. Chen, your understanding of the value of Golden Elephant and your determination to restructure it are truly impressive."

Debt-to-equity swaps are theoretically reasonable.

He then changed the subject, saying, "But this requires specific safeguards and details to support it."

Pangus Bank cannot make a decision based solely on your description.

“I understand your caution,” Chen Bingwen responded immediately. “The document contains Jinxiang’s latest balance sheet, the supply contract with Chen Ji Foods, and an outline of a restructuring plan for the next 18 months, including capacity optimization, cost reduction and key customer lock-in.”

He turned to Fang Wenshan and said, "Manager Fang will provide all the details the bank needs and arrange for your team to conduct an on-site inspection."

Regarding the specific operational procedures for debt-to-equity swaps and the list of powers and responsibilities of the bank's appointed directors, our team can liaise with your relevant departments at any time to draft specific agreement terms as soon as possible.

Surayut's gaze swept over the documents on the table. After a moment's thought, he nodded: "Pangu Bank accepting debt-to-equity swaps is a feasibility study."

However, the final decision will be made by our evaluation team based on complete due diligence and detailed agreement terms.

Please provide detailed financial data and a restructuring plan, as well as the nomination and authority scheme for the bank's directors, as soon as possible.

“Of course!” Chen Bingwen readily agreed. “We look forward to working closely with the assessment team at Pangu Bank and believe that the bank’s professional judgment will arrive at the optimal solution.”

Although Pangu Bank did not give a final answer, Chen Bingwen knew from Surayud's attitude that as long as there were no unexpected events, the matter was basically settled.

After all, the pledge of 30% of Golden Elephant's shares and the loan of approximately HK$120 million were negligible to Pangu Bank.

The air at the Rayong factory of Golden Elephant Food Industries is filled with a strong aroma of coconut and a subtle scent of caramel.

Instead of returning to Hong Kong Island, Chan Ping-man rented a temporary apartment near the factory, essentially moving his office into the factory.

He viewed this brief waiting period, with no response from Pangoal Institution yet, as a golden window of opportunity to take control of the financial sector and resume production.

Chen Bingwen can be seen almost every day beside the coconut milk and syrup production lines.
His very existence is an invisible pressure and driving force.

"Pongcai, why is the efficiency of this coconut milk bottling line only 75% of its design value? What's the bottleneck? Is it due to aging equipment or operational issues?"

"Chawa, is the delivery of fresh coconuts to that cooperative in Phang Nga province in the north delayed? What caused this? Is it a problem with the transport vehicle allocation or the cooperative itself? Contact them immediately, I need a clear timeline!"

"Wirayu, why wasn't yesterday's production loss report from shift three on my desk before the morning meeting? The procedures must be strictly followed!"

Having witnessed many grand events in his previous life, Chen Bingwen was able to handle Jinxiang Foods' daily problems directly, precisely, and efficiently.

The original management team of Golden Elephant, including Pongchai and Chawat, went from feeling nervous and unaccustomed at first, but later they even developed a sense of excitement about being led to fight a tough battle.

Under his high-pressure push, the raw material supply channels in the northern production area were quickly opened up and stabilized, and the daily output of coconut milk at the Rayong factory is steadily moving toward the target of 5 tons set by Chen Bingwen.

One afternoon, Chen Bingwen was inspecting the syrup production workshop.

He noticed several workers who had just finished their shift gathered in the rest area in the corner of the workshop, each holding a palm-sized bright red glass bottle and drinking the amber liquid inside.

The bottle has a unique shape and a simple Thai label on it. The contents are not clearly visible, but the bright red label and the small size make it stand out in the drab factory environment.

It was just a glimpse!
Chen Bingwen stopped abruptly. "What...is that?"

Chen Bingwen pointed to the small red bottles in the workers' hands, his voice slightly tense, and asked the translator and Pengchai beside him.

Pongchai followed his gaze and a knowing smile appeared on his face: "Oh, that's a popular energy drink among workers called Red Bull."

It has a strong taste, but it really makes you feel energized. Drinking a bottle is very effective when you're working overtime or staying up late.

They're cheap, and you can find them at roadside shops.

Red Bull!

The name struck Chen Bingwen like a thunderbolt!

Founded in Thailand in 1976 by Chinese businessman Chaleo Yoovidhya, it was initially positioned as an energy drink for blue-collar workers and night shift drivers. Its main ingredients include taurine, caffeine, B vitamins and syrup. With its strong energizing effect and low price, it quickly became popular in the Southeast Asian grassroots market. This was the prototype of Red Bull!

In the future, under the management of Austrian businessman Mateschitz, it will break out of Asia and become a super functional beverage giant with annual sales of tens of billions of US dollars worldwide!

This has created several super-rich individuals with assets worth tens of billions of US dollars.

At this moment, the original version of this future beverage empire appeared before him without any warning, being drunk as a cheap energy drink by a few tired Thai workers.

Suppressing the turmoil in his mind, Chen Bingwen calmly said to Pengchai, "Go buy a few bottles, I'll try some too."

Soon, several bottles of chilled Thai Red Bull were delivered to Chen Bingwen.

He unscrewed the bottle cap, and a pungent aroma, a mixture of herbs, spices, and strong sweetness, rushed into his nostrils.

He took a small sip; the taste was extremely strong and sweet, with a distinct herbal bitterness and a strong medicinal feel. The texture was not good; in fact, it could be described as somewhat rough.

But after swallowing, a distinct, slightly tingling, refreshing sensation quickly spread from my throat, dispelling the afternoon's drowsiness.

Each bottle contains 1000 mg of taurine, which is significantly more potent than the previous Red Bull, which only contained 55 mg of taurine.

"The taste is... very unique." Chen Bingwen put down the bottle and commented calmly, as if he were just tasting an ordinary local beverage.

“Haha, yes, Mr. Chen, many people aren’t used to it the first time they drink it,” Pongchai laughed. “But we Thais, especially those who do manual labor, can’t live without it.”

Chen Bingwen nodded and did not ask any further questions.

But a bold plan, one that goes beyond his original intentions for this trip, has already begun to grow and take shape in his mind.

Red Bull's formula!
Although he didn't know the exact proportion of the original 100%, in his previous life, when Dongpeng Special Drink was launched, as the representative of the investors, he was deeply involved in product development and market positioning. He was very familiar with the core ingredients of functional beverages and their synergistic mechanisms, and also had a profound understanding of taste balance.

He was almost certain that he could replicate or even optimize a formula that was just as effective as Red Bull!
More importantly, he doesn't need to go to Chaleo Yoovidhya to discuss any authorization!
He now owns a factory like Golden Elephant with a stable syrup supply capacity, is backed by the bottled syrup bottling production line that Chen Kee Desserts is about to establish on Hong Kong Island, and has a franchise chain system that he will roll out when he returns to Hong Kong Island.

The supply chain, production chain, and distribution chain are all well-established!

Why can't he create his own functional beverage brand that is based in Hong Kong Island and radiates across Asia and even the world?

The thought popped into Chen Bingwen's mind.

Like wild grass in spring, it grew wildly in his mind.

Dongpeng Special Drink's success taught him that as long as the market positioning is accurate, different strategies can be formulated for different regions.

Focusing on cost-effectiveness and expanding into lower-tier markets can also help them carve out a niche for themselves.

The acquisition of Jinxiang solved Chenji Dessert's raw material bottleneck.

The discovery of Red Bull opened up a blue ocean for him, a blue ocean that was far broader and more explosive than just desserts, and could break the ceiling of the Hong Kong dessert market share.

This trip to Thailand was far more rewarding than I expected!
Just as Chen Bingwen was outlining his vision for the future of functional beverages, Pangoal Institution's official response finally arrived.

Surayut called personally, his tone much more conciliatory than when they last met: "Mr. Chen, after our evaluation team's thorough due diligence and careful discussion by senior management, Pangoal Institution has accepted your debt-to-equity swap proposal in principle."

We have agreed to release the 30% stake in Golden Elephant Foods held by the Somchai family from the pledge, and transfer it to Pangoal Institution as a strategic investor, allowing Pangoal Institution to directly hold a 30% stake in Golden Elephant Foods Industrial Company.

Chen Bingwen felt relieved, but his tone remained calm: "Thank you to Mr. Surayud and Bangkok Bank for their trust and professional judgment in making a win-win decision."

“However,” Surayud changed the subject, “based on risk management and the protection of shareholders’ rights, the bank requires that a non-executive director be appointed to the board of directors of Golden Elephant to oversee the company’s major decisions and financial status.”

At the same time, we need to sign a detailed shareholders' agreement that clearly defines the rights and responsibilities of both parties.

“This is a reasonable request, and we fully accept it.” Chen Bingwen agreed without hesitation. “Our team will fully cooperate with your bank’s legal and financial departments regarding the specific details.”

The appointment of directors was expected. As long as he holds controlling stake, he can control the strategic direction. This is actually a good thing, as it introduces bank credit backing and boosts market confidence.

"Very good. The Bangkok Stock Exchange's investigation into the suspension of Golden Elephant shares is also nearing completion."

I have been informally informed that the investigation concludes that the abnormal fluctuations were caused by market panic, and no conclusive evidence of market manipulation by Sugarheart Capital has been found.

The exchange is expected to issue an announcement tomorrow morning that trading of Jinxiang shares will resume.

Mr. Chen, the company's performance after the resumption of trading is crucial to Jinxiang's future financing and our cooperation.

Surayut reminded her, his tone tinged with anticipation.

With Pangoal Institution becoming a shareholder, it naturally hopes that Golden Elephant's share price can rebound.

"Please rest assured, Mr. Suraya. Golden Elephant is back on track, and I have a plan for the day it resumes trading," Chen Bingwen replied confidently.

What flashed through his mind was not only the stable supply of coconut milk, but also that bright red color and the infinite possibilities it represented.

　Thank you everyone for your support!! A special thank you to linvas, Xiaohugekk, and Xiaokaige_eB for their generous donations; thank you so much for your recognition!!

　　
　
(End of this chapter)