Chapter 326: Maxim's Foods
The next day, after arriving at Changxing Tower, Zheng Zhijie came to meet Yang Wendong.
"Come in, have a seat," Yang Wendong said, handing over a can of drink with a smile. "This is a herbal tea that Watsons just started trial-producing. It's pretty good."
"Thanks, Mr. Yang!" Zheng Zhijie said, accepting the can with a smile. He glanced at the label and said, "UniTea Herbal Tea? That's a catchy name."
Yang Wendong chuckled. "The simpler, the better. If we ever expand into overseas markets, simple brand names are easier to promote."
The simpler the brand name, the easier it was to build awareness—like using common words, which helped customers remember it. That was a major advantage during early expansion.
In his past life, Yang Wendong had thought long and hard about brand names, and in the end, "Unified (UniTea)" was the simplest and most effective.
Zheng Zhijie studied the can for a moment, popped it open, and took a sip. "That's refreshing—tastes even better than the ones from breakfast shops."
Yang Wendong replied, "Because it just came out of the fridge. Any drink tastes better cold—even Coca-Cola."
Sugary drinks and fruits both tasted noticeably better when chilled close to freezing. The cold heightened the stimulation of the taste buds—even in winter.
Zheng Zhijie nodded. "True, but fridges are still quite rare in Hong Kong households these days."
"When the time is right, I'll have Rongyao Electronics start producing refrigerators," Yang Wendong said with a smile. "That'll bring the price down."
Before computers arrived, home appliances were the largest sector in the global electronics market. And now, he had a golden opportunity—electronic control was slowly being integrated into home appliances, which opened up new possibilities.
Of course, this wasn't an opportunity just for him. It was open to everyone. It would come down to who could execute better.
At present, his advantage wasn't overwhelming—not until the computer era in a decade or so. So Rongyao's expansion would still need to proceed step by step.
"That'd be great," Zheng Zhijie smiled. "Demand for refrigerators in Hong Kong is only going up."
"Mm." Yang Wendong nodded. "So, what brings you to me so early today?"
"There are two things." Zheng Zhijie took out a large roll of blueprint paper, unrolled it, and said, "The first is that we just received the design plans for the land king plot. Pei Tsu Ming's firm has completed the draft. We're planning a 28-story office tower, about 300,000 square feet in total. Here's the structural diagram."
Yang Wendong took a look. The design was simple and boxy—nothing fancy. In this era, skyscrapers didn't usually involve flashy architecture. Buildings were short, so there wasn't much need for wind resistance or complex foundations.
"Right here—" Zheng Zhijie began walking through the floor-by-floor layout, explaining all the internal design features.
It took 20 minutes to go through everything.
After hearing it all, Yang Wendong thought for a moment and said, "Only two underground parking levels? That's not enough. Add two more. We need to plan ahead. Once Hong Kong's economy grows, there will be more cars."
Even in the future, the average car ownership rate in Hong Kong would remain low—but that was the average. The kind of people who worked in Central office buildings? Many would own cars.
Whether he used the building himself or leased it out, having ample parking would only increase its value.
"Got it. I'll speak with Pei Tsu Ming and revise the plans," Zheng Zhijie replied.
"At worst, if we don't need that many parking spots, we can convert Basement Level 1 into retail space. Maybe even put a Carrefour store in there," Yang Wendong added.
Supermarkets in Hong Kong were very different from those in the mainland. As anyone who had visited Hong Kong would know, many stores were inside commercial buildings, not standalone buildings.
It wasn't that people in Hong Kong disliked standalone supermarkets—it was that land prices were too high. Given all the costs, mixed-use developments were more practical.
Because he had invested early and anticipated land value increases, Yang Wendong could afford to mimic mainland models in some locations. But in places like Central, this was the only option left.
Zheng Zhijie nodded. "Exactly. In Central, putting the supermarket inside a high-rise is probably the best move. It's basically impossible to find a standalone site to build on."
"Mm. But wherever we can, we should still build our own properties," Yang Wendong said. "How's the supermarket self-build strategy going?"
"Very smoothly," Zheng Zhijie said. "In Kowloon, these sites are easy to acquire. On Hong Kong Island, our options are more limited, but we've already purchased four old buildings and adjacent plots.
But now it looks like Jardine's people are copying us. They must be struggling with central district rents too."
"Jardine cares about rent?" Yang Wendong asked with a laugh.
"Maybe not the conglomerate, but ParknShop definitely does," Zheng Zhijie said. "It's probably run as an independent entity. If it bleeds money for too long, even Jardine won't tolerate it.
Even if the property belongs to Hongkong Land, I bet they still charge rent—just like how we do for internal divisions. Maybe with a slight discount."
"That's true. Their big groups are full of internal factions anyway," Yang Wendong said. "Forget them. Let's focus on our own work."
If they relied on existing buildings—whether renting or buying—they'd soon run into severe resource constraints. Suitable sites were already in short supply. Carrefour had already taken up many. And with land prices soaring, the costs would only get worse.
But if they bought land and built from scratch, the choices were endless. Anyone on Jardine's side with a brain would eventually realize that was the smarter path.
"Understood." Zheng Zhijie then said, "The second thing is about Maxim's Foods, the company you asked me to investigate. I've gathered the information. Please take a look."
He handed over a folder.
"Maxim's?" Yang Wendong said, remembering. He took the file and began flipping through it.
Zheng Zhijie began his explanation, "Maxim's Foods was founded in 1956 by the Wu brothers, Wu Zhan De and Wu Shun De. They started out with a Western-style restaurant business and quickly made a name for themselves among Hong Kong's upper class thanks to their strong management capabilities.
Around 1960, Maxim's expanded into coffee, bakeries, and patisseries. Their products were excellent, and they became extremely popular with the general public in Hong Kong. It's said that last year their revenue exceeded HK$10 million, which makes them one of the top-tier players in this industry."
"Ten million?" Yang Wendong nodded and asked, "That kind of revenue alone shouldn't be enough to attract Jardine's interest, right?"
Zheng Zhijie responded, "HK$10 million alone, probably not. But Maxim's business is mainly concentrated around Central. If they expanded throughout Hong Kong, it wouldn't be hard for them to triple or quadruple that figure."
"That makes sense," Yang Wendong said. "Their food is excellent—I've eaten there a few times myself." He paused. "So Jardine is eyeing their business now?"
Zheng Zhijie nodded. "Yes. Initially, Jardine tried to acquire the entire company, but the Wu brothers refused. Jardine then offered to buy 51% of the shares, but that also fell through.
Afterward, Jardine switched tactics and started building their own F&B ventures. Hongkong Land began leveraging its property holdings—forcing some Maxim locations on their properties to shut down, and even opening rival stores nearby. It was a blatant case of using their weight to crush the competition."
"Their real goal is to force the Wu brothers to hand over the company willingly," Yang Wendong said, instantly grasping the situation.
This was actually typical in commercial warfare: crushing smaller players by burning cash and leveraging real estate dominance. In his past life, the internet wars worked the same way.
Carrefour, on the other hand, was protected by its connection to Changxing Group. Jardine likely understood the scale and backing of Yang Wendong's conglomerate, which was why they didn't dare use the same tactics.
Zheng Zhijie nodded. "Exactly. In fact, many Chinese businesses ran into this kind of thing once they got big enough. Jardine, Wheelock, and other British trading houses grew by using precisely these methods.
After the 1950s, things got slightly better, at least on the surface. The colonial government stopped participating in these schemes, probably to save face. If that hadn't happened, Chinese companies would've never had a shot at growth."
"Business is like war. As long as it's not illegal, anything goes," Yang Wendong said with a smirk. "And if you can control the law too, even better."
The improvement in Hong Kong's business environment was partly due to the decline of the British Empire, which could no longer forcibly control its colonies.
It was also a result of geopolitical shifts—like China defeating 17 countries in a border war. That made Western powers think twice about overplaying their hands in the East.
And with nuclear testing set to begin next year, things might ease up even more.
Zheng Zhijie commented, "Right now, Hongkong Land might be bleeding three dollars to make Maxim lose one. But if this goes on long enough, the Wu brothers won't be able to hold out."
"Exactly," Yang Wendong said. "Once they're forced to sell, Jardine gets a high-quality asset for a bargain, and Maxim could grow even bigger under their umbrella."
Historically, Maxim's was acquired by Jardine in 1970, becoming a core brand in their food and beverage empire.
That timeline probably came from the economic downturn of 1965–67, which slowed Jardine's aggressive tactics. Otherwise, it was unlikely a small independent firm could withstand seven years of that kind of pressure.
"Mr. Yang," Zheng Zhijie asked, "do you plan to acquire Maxim's?"
"No. We're not in the F&B business. We have no experience and no real advantage there," Yang Wendong shook his head. "But it's a solid industry, and more importantly—they're draining Jardine's resources. We can simply invest."
There were too many profitable industries. Even as a time traveler, Yang Wendong knew he couldn't manage everything. His real edge lay in finance and in being able to predict future trends in consumer goods—not in labor-intensive service businesses.
Unless it was something disruptive, like launching a supermarket chain, he had no intention of stepping into traditional industries that others were already doing.
Traditional F&B could still make money if Changxing Group entered it, but the resource cost vs. ROI wasn't favorable compared to other industries he could pursue.
So instead of running the business himself, it was smarter to invest in the winners of the future. He could save his energy and perhaps build some strategic allies in the process.
"Should I reach out to the Wu brothers?" Zheng Zhijie asked.
"Yes," Yang Wendong nodded. "But keep it discreet. Don't let Jardine catch wind of it."
"Understood," Zheng Zhijie replied.
—
Three days later, at Changxing Tower, Yang Wendong met with the Wu brothers of Maxim's. The two had come under the pretense of "visiting Changxing Plaza," and were quietly brought upstairs via a private elevator.
"Mr. Yang, it's a pleasure to meet you," said Wu Zhan De, the elder brother, followed by his younger brother Wu Shun De.
Yang Wendong greeted them with a warm smile. "Welcome. I've been a loyal fan of Maxim's pastries for some time now."
Wu Zhan De chuckled. "Thank you for your patronage, Mr. Yang. It's an honor for our brand."
Wu Shun De added, "Mr. Yang, we're actually planning to open a store right here in Changxing Plaza. That way, you can enjoy our food more often."
"Haha, I'd like that," Yang Wendong laughed. "But I'll have to be careful—if I eat too much, my health might suffer."
After a moment, he shifted gears. "You probably already know why I asked you here today."
Wu Zhan De said, "Mr. Zheng didn't tell us specifics, but we assume you're interested in investing in Maxim's?"
"That's right," Yang Wendong nodded. "What do you gentlemen think?"
Wu Zhan De asked, "How much are you looking to invest? And what percentage of equity would you be seeking?"
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