Chapter 23: Two Fronts Advancing

"On the Wharf (Wheelock and Marden) stock board, after 2:00 PM, a series of buy orders for over a thousand shares each suddenly appeared. The price jumped directly from 13.6 to 18.2, and the trading volume surged dramatically!

The market is buzzing with rumors that a mysterious buyer is aggressively sweeping up shares. Our analysis department has made a preliminary assessment that major news may be about to be announced!"

Chen Bingwen's heart gave a sharp jolt, and he gripped the receiver tightly.

It was here! This was no ordinary fluctuation; such a concentrated, massive, and aggressive acquisition could only be the signal that the long-brewing takeover battle had officially begun!

Had Li Ka-shing, who had been hiding in the shadows all along, finally lost his patience and decided to openly draw his sword?

Wheelock and Marden was no ordinary listed company; it was a constituent stock of the Hang Seng Index.

Occupying the most prime real estate since the founding of Hong Kong, it was one of the most vital core assets under the British-owned Jardine Matheson. It controlled approximately 70% of Hong Kong's cargo handling, storage, and cross-harbor ferry operations, and was known as the "lifeline of Hong Kong's economy."

Wheelock and Marden owned coveted golden assets, including vast tracts of warehouse land in Tsim Sha Tsui and Causeway Bay on both sides of Victoria Harbour, cargo terminals in the Western District, and the Star Ferry.

In a place like Hong Kong, where land is as precious as gold—especially against the backdrop of the economic take-off in the 1970s, where land prices were skyrocketing like rockets—the potential value of these vast, high-quality warehouse and terminal plots, which could be converted into commercial or residential developments, had long been like buried gold mines, far exceeding their book value as mere warehouse terminals.

However, fate has a cruel sense of irony.

In the mid-1970s, the global shipping industry fell into a severe recession. As a company that started with and primarily focused on terminals and warehousing, Wheelock and Marden’s stock price was firmly pinned at a low, shivering in the winter of the market.

The market only saw its dismal short-term earnings and the heavy burden of its shipping assets.

Meanwhile, Jardine Matheson’s controlling stake in Wheelock and Marden was not particularly high, hovering only around 5% to 15%. In the eyes of the capital market, this was akin to a young child carrying gold through a busy marketplace—full of fatal temptation.

A few days ago, an seemingly ordinary financial commentary had quietly appeared in the *Sing Tao Daily*.

A sensitive financial critic published an article titled "The Business Transformation of Wheelock and Marden Begins."

The text broke away from the market’s stereotypical and pessimistic view of Wheelock as merely a "shipping terminal company," boldly pointing out the land value of its vast, prime real estate.

It predicted: "If Wheelock and Marden Group can fully utilize its land resources and actively pivot toward property development, it could see a healthy growth rate of 20% annually over the next 10 years. Wheelock stock will be the most notable potential hot stock of 1978!"

The value of this commentary was like a stone cast into a deep pool.

Ordinary retail investors might have been baffled by its cryptic language and forward-thinking arguments, or simply skimmed over it as a routine financial prediction.

However, to those in the know, this commentary was a critical confirmation signal before the call to arms.

"Manager Zhang, is the source reliable? Can you trace the buyer's background?"

"It’s very vague! The buy orders are scattered across several different local brokerage firms. The methods are very covert, but the intensity and consistency are definitely not the work of retail investors. We are also urgently conducting an internal investigation. Chen, your position... the floating profit is quite substantial now. Are you considering taking some profits to lock in the gains? The volatility might intensify!"

Manager Zhang’s tone revealed a professional caution and a subtle, almost imperceptible probing.

Chen Bingwen’s move to leverage 300,000 in capital into 900,000 had always been a sword hanging over his head.

Although, as a financing institution, even if Wheelock’s stock price hit zero, only the client's margin would be lost if liquidated in time. But even so, it would be a significant stain on his performance record.

Therefore, it was always better if the client didn't lose money.

"No!" Chen Bingwen said firmly, his voice steady and powerful. "Manager Zhang, thank you for the reminder. But my judgment has not changed; this is likely just the beginning. Please continue to keep an eye on the board for me and notify me immediately if there is any unusual activity. My stop-loss line is clear; just execute it strictly."

The volatility in Wheelock’s share price, like a boulder thrown into a calm lake, created increasingly large ripples in Hong Kong’s capital market.

Over the next few days, the stock price did not fall back as some bears had expected. Instead, it stood firm above 18 HKD and began a gentle, high-volume climb.

All sorts of gossip flew around the market:

Some said there was a rift within Jardine Matheson and the major shareholder, the Keswick family, intended to reduce their stake; others claimed a wealthy Southeast Asian tycoon had set his sights on Wheelock’s Ocean Terminal plot in Tsim Sha Tsui; and some even pointed directly at Li Ka-shing, speculating that Cheung Kong Holdings was secretly accumulating shares.

These rumors, a mix of truth and fabrication, were tossed about in the casual chatter of tea restaurants and the clamor of the stock exchange.

The headline of the *Hong Kong Economic Journal’s* finance section read in bold: "Wheelock Trading Continues to Be Active; Identity of Mysterious Buyer Remains a Mystery; Is Jardine’s Control Being Challenged?"

The report analyzed Wheelock’s asset value in detail, specifically highlighting its prime land in Tsim Sha Tsui and Causeway Bay.

The professional analysis ignited the enthusiasm of more investors, and retail traders began to follow the trend, pushing the stock price steadily up to 30.5 HKD.

Chen Bingwen’s account balance saw rapid growth.

With 300,000 in capital plus a three-fold leverage, the average cost of his 900,000 investment was about 13.2 HKD per share.

At the current price of 30.5 HKD, his floating profit had already exceeded 900,000 HKD! The massive wealth figure jumping on his account was enough to make anyone’s heart race.

But he remained exceptionally calm.

After the close of each day, he still carefully studied all relevant reports and company announcements.

He knew that the real showdown had not yet begun; this share price fluctuation was merely the dessert and appetizer before the main course.

The true feast was yet to come.

Jardine Matheson would never stand by and watch its core assets be coveted by others; the sword of a counter-takeover could be drawn at any moment.

In the Kwun Tong Industrial Zone, inside a factory building larger than the one in Cheung Sha Wan, equipment installation and testing were in full swing.

Gao Zhenhai practically lived on the construction site, working with Zhong Qiang and a group of core staff to replicate the production line according to the standards of the Cheung Sha Wan factory.

Stainless steel boiling pots, mixers, cooling tanks, and other equipment were carefully hoisted into place.

Chen Bingwen would occasionally stop by to check on the burgeoning factory, inspecting the equipment installation and construction progress.

"Brother Wen, the equipment will be finished with testing next week. The first batch of twenty workers recruited has already started training at the Cheung Sha Wan factory. The Kwun Tong plant will definitely be operational by the end of the month!" Gao Zhenhai wiped the sweat from his face, his tone full of energy.

After the trials of the Victoria Park Lunar New Year Fair and this recent experience, the greenness had faded from him, and he had developed the sense of responsibility befitting a factory manager.

"Good!" Chen Bingwen patted his shoulder. "Starting production is just the first step; quality control is the key. The products from the Kwun Tong plant must be identical to those from Cheung Sha Wan—the taste, sweetness, and consistency must not differ in the slightest. This is the lifeline that allows us to survive in the market."

Turning to Zhong Qiang, Chen added, "Brother Qiang, the equipment operation manuals and quality control processes are in your hands."

Zhong Qiang nodded vigorously. "Don't worry, Boss. The recipes and process parameters are burned into my memory. I will personally supervise the critical steps."

On the logistics side, Ah Sheng’s "Shunda Logistics" was running more and more smoothly.

Two second-hand trucks, painted with eye-catching red paint and the "Shunda Logistics" logo, shuttled daily between the Cheung Sha Wan food factory and twenty mobile points and five standard stores across Kowloon.

Ah Sheng seemed to have found the joy of a "legitimate trade," managing the fleet with great skill. His men, now having stable incomes and respectable identities, were full of drive.

Chen Bingwen only met with Ah Sheng periodically to understand operations and costs, delegating the specific management entirely to him.

The five "Chen’s Sweet Soup Stations" located in the core business districts of Mong Kok, Yau Ma Tei, Tsim Sha Tsui, Causeway Bay, and Central had already become landmarks.

The uniform red-and-gold signage, bright glass counters, staff in neat red aprons, and consistently delicious sweet soup had quickly captured the hearts of white-collar workers and citizens alike.

In just half a month since opening, daily sales had easily exceeded three thousand bowls.

Lu Shanshan, the manager of the Central store—a capable woman who had jumped ship from an old-school tea restaurant—was excitedly reporting to Chen Bingwen during his inspection: "Mr. Chen, the queue during the lunch rush goes all the way to the street corner! Many white-collar workers from nearby office buildings are calling directly to pre-order afternoon tea soup sets for their entire departments! The Ginger Milk Curd and Black Sesame Soup are the best sellers!"

Chen Bingwen stood in a relatively quiet corner of the shop, observing the orderly yet bustling scene in front of the counter. He nodded in affirmation: "Booming business is a good thing, but in times like this, quality and service must not be compromised. Try not to keep customers waiting too long. If you need temporary staff, you can contact Factory Manager Gao Zhenhai in advance, and he will arrange it."

Central, top floor of Jardine House.

Outside the massive floor-to-ceiling windows was the busy scenery of Victoria Harbour. Sunlight flooded the carpet, but it failed to dispel the heavy, oppressive cold in the meeting room.

Henry Keswick’s face was so grim it could have wrung out water.

As the Chairman of Jardine Matheson and the guardian of Wheelock and Marden, the glass ashtray in front of him was already piled high with cigarette butts, and the air was thick with the acrid smell of tobacco.

On both sides of the long conference table, a group of Jardine executives sat rigidly, not daring to breathe loudly.

The reports and stock price charts scattered on the table were shocking.

The analyst had just finished his report, and the latest data showed that the hidden buyer’s stake was approaching at a terrifying speed.

With dual operations in secondary market acquisitions and private off-market transfers, they were likely only a step away from breaking the 20% control threshold.

How could Henry Keswick not be anxious!

"Useless! All of you are useless!" Keswick finally could not suppress his fury. He slammed the table, making the cups and saucers rattle. "You let a group of Chinese point a gun at our heads right under our noses! Why wasn't there an effective countermeasure earlier? Why did you let the market rumors fester?"

His bloodshot eyes swept over everyone, his voice sharp and grating.

For decades, Jardine had followed the policy of "making money in Hong Kong, developing overseas."

As a result, their overseas investment front was spread too thin, with low returns, leaving them with a heavy financial burden.

Now that the fire had started in their own backyard, they didn't have the cash to buy back Wheelock shares at a high price.

The meeting room fell into a terrifying silence, with only Keswick’s heavy breathing audible.

In the corner, a senior financial advisor pushed up his glasses and carefully broke the silence, his voice trembling slightly with nervousness: "Chairman, perhaps... there is one more option."

"Speak!" Keswick grabbed at it like a drowning man clutching a straw.

"Ask HSBC for help; ask them to provide funds for us to buy back the shares."

Keswick’s grey eyes shrank suddenly.

HSBC... the uncrowned king of Hong Kong’s financial world.

Bowing to them was no different from drinking poison to quench thirst, but remembering the article in the *Hong Kong Economic Journal* that predicted the skyrocketing value of Wheelock’s land, a chill ran down his spine.

The opponent’s blade was already at his throat; there was no room for hesitation.

"Contact Michael Sandberg immediately!" His voice was hoarse, filled with desperate resolve. "Whatever the cost!"

February 20th, Kwun Tong Industrial Zone.

At five in the morning, the Chen’s Sweet Soup Kwun Tong food factory was brightly lit.

After nearly half a month of intense construction, the new Kwun Tong plant was finally operational.

The official start of production at the Kwun Tong plant was like an adrenaline shot to the rapidly expanding Chen’s Sweet Soup.

The pressure on the Cheung Sha Wan plant was suddenly relieved, allowing it to focus more on refined production and new product development for the Kowloon West region.

With its central, radiating geographic location and production capacity, the Kwun Tong plant quickly became a solid backbone for expansion into Kowloon East and Hong Kong Island East.

The twenty mobile industrial points in Sham Shui Po, Cheung Sha Wan, and Lai Chi Kok, supported by unified red food carts and Shunda Logistics’ efficient delivery, had long become the first choice for workers' lunch breaks.

After the Kwun Tong plant’s capacity was unleashed, more than ten new mobile points were quickly added in the industrial areas of Shek Kip Mei, To Kwa Wan, and Kwun Tong itself.

The red food carts stamped with "Chen’s Sweet Soup" spread rapidly across Kowloon’s industrial map like a wildfire.

However, rapid expansion also brought new challenges.

Personnel management, supply chain coordination, and the absolute uniformity of quality control were all like taut strings.

That afternoon, Chen Bingwen was at the Kwun Tong plant with Zhong Qiang, studying the standardized recipe for a new product, "Coconut Sago."

Gao Zhenhai emerged from the office and headed straight for them.

"Brother Wen, the Kwun Tong plant... has run into a situation."

Gao Zhenhai’s tone carried rare anxiety and guilt.

"Don't worry, tell me slowly. What happened?" Chen Bingwen frowned slightly.

"It’s the Black Sesame Soup... the latest batch from the Kwun Tong plant, sent to several mobile points in Yau Tong and Lam Tin. Customers are complaining that... the taste is wrong, it’s not as fragrant and rich as before, and it’s a bit bitter."

Gao’s voice was full of self-reproach. "I checked the production records. The raw material batch was fine, the process parameters haven't changed, and I’ve been watching the workers... but the taste is just not right! Now the guys at those points are calling back to say customers are asking for refunds."

"Quality control has failed!" Zhong Qiang’s face changed instantly, and he shouted before Gao could finish.

For Chen’s Sweet Soup, which relied on reputation and standardization, this was the most fatal core pain point!

He and Chen Bingwen exchanged a glance, both seeing the gravity in each other's eyes.

Chen Bingwen’s brow furrowed even tighter. He had just been gratified by the new plant’s production capacity and the accelerated expansion—the market was like a wildfire, but a single spark inside was enough to ignite the entire prairie!

"Immediately! Stop all production and shipment of Black Sesame Soup at the Kwun Tong plant!" His voice was firm, carrying an unquestionable authority.