Movie: Get Alpha Dog at the start

Late April 1984, Des Voeux Road Central, Central, Hong Kong.

Newsstands along the street were piled high with the day's newspapers, with the front page almost entirely dominated by two headlines: one reporting the second round of Sino-British negotiations on Hong Kong's future held in Beijing; the other a follow-up report on Burger King's revenue surging by 40% after implementing a transparent kitchen. In this city, permeated with anxiety and speculation due to uncertainty about the future, people were desperately searching for any signals that could bring a sense of security and opportunities for wealth.

In this atmosphere, Burger King officially submitted its listing application to the Hong Kong Stock Exchange.

At that time, the Hong Kong stock market was in an era of "four exchanges coexisting"—the Hong Kong Stock Exchange (commonly known as the "Hong Kong Exchange"), the Far East Exchange ("Far East Exchange"), the Gold and Silver Exchange ("Gold and Silver Exchange"), and the Kowloon Stock Exchange ("Kowloon Exchange") each operated independently and competed fiercely.

However, the actual power to approve listings still rests with the Hong Kong Stock Exchange, the oldest and most prestigious stock exchange in Hong Kong. The exchange building, located at No. 8 Connaught Place in Central, appears solemn and indifferent in the humid April air.

Qin Hao's Mercedes was parked downstairs at the stock exchange. He got out and glanced up at the building that would determine the fate of Burger King. Zhao Yajing followed behind him, wearing a dark blue business suit today, her hair neatly styled in a bun. She carried a thick manila envelope containing over five hundred pages of listing application documents.

"Are you nervous?" Qin Hao asked.

Zhao Ya took a deep breath: "A little. But mostly I'm excited—we've come this far."

"This is just the beginning." Qin Hao straightened his tie and stepped into the building.

The listing application submission process proceeded smoothly. They were received by the deputy director of the stock exchange's listing department, a British man in his fifties with slicked-back hair, whose Chinese name was Richard. As he took the heavy file folder, he raised an eyebrow: "It seems you've prepared very well."

“We hope to present the company’s overall picture in as much detail as possible,” Qin Hao replied in fluent English.

Richard nodded and said routinely, "We will review it as soon as possible. However, according to the procedure, it will take at least four to six weeks to move on to the next stage. As you know, the market situation is special right now, and the committee's review will be more stringent than usual."

"I understand," Qin Hao said. "I'll cooperate at any time."

As she walked out of the stock exchange building, Zhao Yajing couldn't help but look back: "Is it really that simple? I thought it would be much more complicated."

"The real challenge is yet to come." Qin Hao opened the car door. "Document review is just the first hurdle. The real test is the listing committee's hearing."

A month and a half later, in early June.

The meeting room on the third floor of the Hong Kong Stock Exchange. Nine people sat on either side of a rectangular mahogany conference table—the entire Listing Committee. Among them were a senior broker with gray hair, an accountant wearing gold-rimmed glasses, a serious-looking lawyer, and two senior executives of the exchange. Each of them had a copy of Burger King's IPO prospectus in front of them, the margins covered with yellow sticky notes.

Qin Hao, Zhao Yajing, and Smith, the managing director of the sponsoring bank—a British merchant bank—sat at the other end of the conference table. The atmosphere was so tense it could melt ice.

The chairman, a British man in his seventies, adjusted his reading glasses, flipped through documents, and spoke in a steady but authoritative voice: "Mr. Qin, Ms. Zhao, thank you for being here today. The committee has a few questions, and we hope you can answer them frankly."

"Of course." Qin Hao nodded slightly.

The first to ask a question was the accounting committee member, a man in his forties with a thin face: "Page 147 of the prospectus shows that your company's net profit growth rates for the past three years were 45%, 50%, and 60%, respectively. This growth rate is extremely rare in the catering industry. How do you explain this?"

Qin Hao calmly replied: "Three reasons. First, we've entered a gap in the Hong Kong fast food market, with precise positioning; second, the transparent kitchen initiative has boosted brand trust, directly translating into revenue; third, standardized management and large-scale procurement have led to a continuous decrease in marginal costs. All financial data has been audited by PricewaterhouseCoopers and is available for verification."

……

The elderly British man took off his reading glasses and looked at the other committee members. Some nodded, while others remained expressionless.

"The committee has approved your listing application in principle. The listing department will communicate with you regarding the specific details."

"Thank you, Chairman, and thank you, fellow committee members." Qin Hao stood up.

……

In mid-June, the news of Burger King's IPO was officially announced.

The IPO, with a ten-day subscription period and an offering price set at HK$2.5 per share, planned to issue 4800 million shares and raise HK$1.2 million. The news caused a sensation throughout Hong Kong.

At that time in Hong Kong, the fervor surrounding food hygiene and safety had not completely subsided. Newspapers still carried daily reports on restaurant hygiene, and the results of surprise inspections by the Department of Health frequently made headlines. Against this backdrop, the image of Burger King's transparent kitchen became deeply ingrained in the public consciousness, almost becoming synonymous with "safety and hygiene."

A deeper reason lies in Hong Kong's investment culture. In 1984, bank deposit interest rates in Hong Kong were below 3%, and some small accounts even required out-of-pocket management fees. Most Hong Kong citizens had a habit of investing—stock speculation, property speculation, foreign exchange speculation, horse racing betting, sports betting… They believed in the idea that you can never get ahead by working for someone else; to prosper, you have to be daring and hardworking.

This also explains why Hong Kong is always the first to be hit by every stock market crash—high leverage, rampant speculation, and rampant herding behavior.

On the first day of the IPO, long queues formed outside HSBC's headquarters in Central. Men, women, and children, holding subscription application forms clipped from newspapers, waited anxiously. Some had arrived before dawn to queue, while others brought small stools and thermos flasks, prepared for a long wait.

"Uncle, are you here to buy Burger King too?" a middle-aged man asked the old man in front of him.

"Of course!" the old man exclaimed loudly. "My grandson loves their fried chicken the most. Besides, have you read the newspaper? Their restaurant is the cleanest in all of Hong Kong! A company like that is bound to have its stock soar!"

"That's what I think too. And look, the issue price is only two and a half dollars, it's cheap!"

"I'm planning to buy 10,000 shares! I'll take a gamble, and maybe I'll turn a bicycle into a motorcycle!"

Such conversations could be heard everywhere in the queue. By noon, the bank announced that all the first-day subscription application forms had been distributed, but the crowd still refused to disperse and demanded that more be printed.

The frenzy continued for the next nine days. Final statistics showed that the public offering portion was oversubscribed by more than 12 times, while the institutional placement portion was oversubscribed by dozens of times. The underwriters were forced to activate the clawback mechanism, increasing the proportion offered in the public offering.

In early August, Burger King was officially listed on the Hong Kong Stock Exchange.

On its first day of trading, the stock opened at HK$2.5. Within just five minutes, a surge of buy orders caused the price to gap up to HK$2.8. Inside the exchange floor, shouts from brokers filled the air.
"0024, two dollars and ninety cents, five thousand lots needed!"

"Three pieces! Will anyone put three pieces down?"

"Three dollars and one jiao! I'll bid three dollars and one jiao!"

The numbers on the electronic price display jumped rapidly. Zhao Yajing and Qin Hao stood in the observation deck on the second floor of the exchange, watching the frenzied scene below. Zhao Yajing's hands gripped the railing tightly, her knuckles turning white.

"Three yuan and fifty cents..." she murmured.

"It's not over yet." Qin Hao stared at the screen.

As expected, buying intensified after the market opened in the afternoon. Some retail investors who bought at lower prices in the morning began to take profits, but more funds poured in. By 3 p.m., the share price had broken through HK$3.80, and finally closed at HK$3.82.

Daily increase: 52.8%.

Cheers and applause erupted inside the stock exchange—a stunning debut in the context of a generally sluggish Hong Kong stock market in 1984. Tomorrow's headlines were already predictable: "A New Consumer Stock King is Born, Soaring 50% on its First Day!"

That evening, Qin Hao and Zhao Yajing held a celebration banquet at the Mandarin Oriental Hotel. The banquet hall was filled with the clinking of glasses, and investors, partners, and company executives were all beaming with joy. Shi Fangren also arrived with Shi Xiaona, raising his glass to congratulate Qin Hao: "Xiao Qin, you fought brilliantly this time!"

"Thank you for your support, Uncle Shi." Qin Hao clinked glasses with him.

Zhao Yajing drank quite a bit of champagne, and her cheeks were flushed.

“Old Qin…” Zhao Yajing’s voice trembled slightly: “Isn’t it too easy to make money in the stock market? Ten days ago, this money didn’t even exist, and now it’s in our account…”

"Money in the financial market comes and goes quickly," Qin Hao said, emphasizing each word. "Today they can elevate us to the heavens, and tomorrow they can trample us underfoot. Once we fail to keep up with the rapid pace of development, we will be ruthlessly kicked off the train by capital. This money is not earned, but borrowed—borrowed from investors' confidence in the future."

The intoxication on Zhao Yajing's face gradually faded. She recalled the news reports of people jumping off buildings that she had seen in Hong Kong over the years: people going bankrupt from property speculation, people suffering stock market crashes, people being swallowed up by the financial markets...

“You’re right.” She took a deep breath: “The capital market, to put it bluntly, invests in the future. Even if your business is doing well and your debt ratio is not high, if they think you have no future, you will still be ruthlessly abandoned.”

“So,” Qin Hao walked to the window, looking at the night view of Victoria Harbour, “we need to build a moat as quickly as possible. We don’t have much time left.”

"Not much time?" Zhao Yajing asked, puzzled. "Now that we have money, shouldn't we be more relaxed?"

Qin Hao turned around, his expression grave: "I've received information that KFC is planning to return to Hong Kong. They'll be here by next year at the latest. At that time, Burger King will face direct competition from international giants. Once dragged into a price war, without strong logistical support and cost control capabilities, it will be crushed in less than six months."

Zhao Yajing's face paled. Of course she knew that KFC—a global fast-food giant—far surpassed Burger King in terms of brand, capital, and management experience.

"Then what should we do?"

"Solve the most crucial problem." Qin Hao walked back to the table and took out a document: "Ingredients, especially chicken."

……

In 1984, the Chinese broiler market was dominated by yellow-feathered chickens. These chickens were raised on farms, eating grains and insects, resulting in firm and delicious meat. However, their growth cycle was over 150 days, leading to high breeding costs, which could not meet the large-scale, standardized, and low-cost demands of the fast food industry.

White-feathered chickens, a breed introduced from the United States, can be ready for market in just 40 days. They have a high feed conversion rate and are suitable for factory farming. In fact, as early as the early 80s, mainland China had already begun to import white-feathered chickens on a small scale, but due to a severe shortage of foreign exchange reserves, large-scale promotion was not possible.

For Qin Hao, this was not a problem—Hong Kong dollars could be directly exchanged for US dollars.

In mid-August, Burger King held its first board meeting since its IPO. The meeting was held in the group's new headquarters office in Central, Hong Kong—Qin Hao had rented the entire floor after the IPO.

The board of directors has seven members: Qin Hao serves as chairman, Zhao Yajing as a director, Shi Xiaona holds one seat from the Shi Group, and the other four seats are held by investment institutions with significant shareholdings. Shi Fangren did not appoint his son, Shi Xiaojun, to the board, but instead chose his daughter, who had just graduated from the University of Hong Kong. The reasons behind this are clear to everyone.

The first item on the agenda was the white-feathered chicken farming plan.

Qin Hao stood in front of the projection screen—this Sanyo projector was also newly purchased—displaying data and charts: "...In summary, if we don't build our own breeding base, once KFC enters Hong Kong, it is very likely that they will suppress us by controlling the upstream raw materials. Chicken costs account for 35% of our product costs, which is our lifeline."

A board member asked, "Chairman Qin, why did you choose to build the factory in mainland China? Why not in Hong Kong?"

“Hong Kong has expensive land prices and strict environmental protection requirements, making it unsuitable for large-scale farming.” Qin Hao switched slides to show a map: “Guangdong is the best choice. On the one hand, Guangdong is at the forefront of reform and opening up, with flexible policies; on the other hand, it is close to Hong Kong, resulting in lower cold chain logistics costs.”

How much investment is expected?

"Fifty million Hong Kong dollars," Qin Hao said. "To build an integrated base that combines breeding, slaughtering, and freezing. Once completed, it will not only meet Hong Kong's needs but also supply the mainland."

Qin Hao did not include Burger King stores in mainland China in his assets. Hong Kong has limited room for development, but the mainland is a different story; it is an infinitely large market.

There was a moment of silence in the meeting room. Then, Shi Xiaona was the first to raise her hand: "I agree."

Zhao Yajing glanced at her and raised her hand as well: "Agreed."

The board members exchanged glances and ultimately approved the motion unanimously.

Over the next two months, Qin Hao personally led a team that visited more than a dozen cities and counties in Guangdong. As a Hong Kong-listed company, Burger King received extremely high honors. In each location, the mayor personally received them, and the investment promotion bureau and the foreign trade and economic cooperation commission accompanied them throughout the trip.

They looked at the wasteland on the outskirts of Guangzhou, the fishponds in Dongguan, and the orchards in Zhongshan. Finally, their gaze settled on Huizhou.

In 1984, Huizhou was still a county-level city under the jurisdiction of Huiyang Prefecture. It had vast hilly areas, sparse population, and cheap land. More importantly, the Dongjiang River flowed through Huizhou, providing abundant water resources; it was less than 100 kilometers from Shenzhen and only a two-hour drive from Hong Kong.

The mayor of Huizhou, surnamed Lin, was a dark-skinned man in his fifties from the south. He hosted a banquet for Qin Hao and his entourage at the municipal party committee guesthouse, during which he patted his chest and assured them: "President Qin, as long as you locate the project in Huizhou, I will personally take charge as the project leader! We will build the roads in advance; we will set up a special team to ensure the electricity supply, so you don't need to worry about any logistical issues."

Qin Hao raised his glass: "With Mayor Lin's words, I can rest assured."

In October, the agreement was signed. Burger King invested HK$50 million to build a 300-acre broiler chicken breeding and slaughtering base in Huizhou. The news excited the entire city of Huizhou—this was the largest foreign investment since the city's establishment.

The groundbreaking ceremony was scheduled for early November. Shi Fangren took time out of his busy schedule to come, traveling from Shenzhen in a Mercedes-Benz. Along the way, he looked out the window at the dusty construction site, the newly paved asphalt road, and the busy bulldozers, his eyes shining.

At the ceremony, colorful flags fluttered and drums resounded. Mayor Lin personally wielded a shovel to add soil, while television reporters recorded the event with cameras. Standing beside Qin Hao, Shi Fangren looked at the bustling scene before him and exclaimed, "President Qin, I truly admire you more and more. After the successful listing, you remained humble and focused on developing upstream industries. I haven't seen another young person with such composure and vision."

"Uncle Shi, you flatter me," Qin Hao said modestly.

“No flattery.” Shi Fangren turned to look at him earnestly: “I heard you’ve got a project called ‘Jinxiu Garden’ in Shenzhen, a large community of 130 acres. How’s it going? Still short of funding?”

Qin Hao chuckled inwardly: This old fox has finally spoken.

He remained outwardly calm: "Of course, the more funds the better. What, Uncle Shi, are you interested?"

“I’ve always been interested in businesses that make money,” Shi Fangren laughed heartily. “Especially the projects you manage.”

“That’s perfect,” Qin Hao said. “After the ceremony here, we’ll go to Shenzhen to take a look in person. Uncle Shi will decide whether to invest after his inspection.”

"Great!" Shi Fangren patted him on the shoulder. "But then again, investing is about investing in people. I have faith in you. If your project needs funding, just let me know!"

"Thank you very much, Uncle Shi." Qin Hao said thank you, but he knew in his heart that the old man was very shrewd. If the project did not meet his expectations, he would definitely just pack up and leave.

After finishing the business, Shi Fangren changed the subject: "By the way, Xiao Na has now graduated. Do you think we could arrange a real position for her at Burger King? She also wants to learn something practical."

Shi Xiaona stood not far away, talking to Zhao Yajing. Today she was wearing a beige trench coat, her long hair flowing down her shoulders, making her look exceptionally beautiful on the dusty construction site.

Qin Hao frowned inwardly. Shi Fangren's intentions were all too clear—he wanted to train his daughter, but more importantly, he wanted to create opportunities for Shi Xiaona to interact with him.

As for Zhao Yajing? In Shi Fangren's view, as long as she is not married, his daughter has a chance. He has confidence in his daughter, whom he has carefully raised: a graduate of the University of Hong Kong, with an elegant temperament and broad knowledge, she is incomparable to Zhao Yajing, who comes from a "small-town merchant family".

"Well... I need to discuss this with President Zhao," Qin Hao casually declined. He didn't want to experience a daily ordeal.

……

The day after the groundbreaking ceremony, Qin Hao and Shi Fangren arrived in Shenzhen.

The "Jinxiu Garden" project is located in Luohu District, not far from the future city center. The 130-acre site has been leveled and surrounded by a wall. Several excavators and bulldozers are working, kicking up clouds of dust. A huge planning map stands at the entrance to the site: more than twenty sixteen-story residential buildings surrounding a central garden, along with a kindergarten, shops…

Yang Shumo was on-site overseeing the work. He'd spent half the last six months there, going from knowing nothing to being able to read construction drawings, coordinate construction teams, and deal with government departments. He'd gotten tanned, and he'd become more capable.

Upon seeing Qin Hao and Shi Fangren, he rushed over, exclaiming, "Brother Hao! Uncle Shi! What brings you here?"

Shi Fangren gave a forced smile: "What? Can't I join in the fun?"

Deep down, he looked down on Yang Shumao. It wasn't because of poverty—the Shi family had also come from humble beginnings. It was because Yang Shumao's mother had caused Shi Fangren a great deal of suffering back in Beijing. Those old grudges were nothing short of deep-seated hatred. To ask him to marry his daughter into the Yang family? That would be worse than death for him.

Yang Shumo chuckled awkwardly and led the two on a tour of the construction site. Pointing to the planning map, he explained, "...This is the first phase, eight buildings, construction will begin before the end of the year. Land over there has been reserved for the second phase..."

Shi Fangren listened and nodded. He was a seasoned veteran; he could tell at a glance that this project had potential: a good location, innovative design, and a clear positioning. More importantly, he saw the speed of Shenzhen's development—just a few months ago this was barren land, and now it was already taking shape.

After the site visit, they returned to the temporary office. Shi Fangren waved his hand and said, "President Qin, I'm investing in this project! Shall we find a place to discuss the details?"

"Sure," Qin Hao smiled. He naturally wouldn't refuse money that was offered to him.

A 130-acre community would cost at least 150 million RMB to build. Relying solely on profits from Burger King's mainland stores wouldn't be enough; it would also hinder the core business's development. Introducing external capital is inevitable. And with the Shi family, the cooperation has been relatively pleasant; it's better to stick with what you know than to do something unfamiliar.

Over the next three days, both teams held negotiations in a conference room at the newly opened Shangri-La Hotel in Shenzhen. The focus was on the investment ratio and profit distribution.

Shi Fangren demanded a high price: "I'll offer 80 million for a 40% stake."

Zhao Yajing shook her head: "President Shi, the total investment for this project is estimated at 150 million yuan. You will contribute 80 million yuan, accounting for 35%. We also need to bring in other investors."

“35% is too low. When I develop properties in Hong Kong, it’s standard practice to invest half and hold half the shares.”

“But this is Shenzhen, and we initiated the project,” Zhao Yajing interjected. “We provide the land, design, and management team. These all have value.”

The negotiations stalled for two days. On the afternoon of the third day, Qin Hao personally intervened.

“Uncle Shi, 35%, that’s the most we can do.” He got straight to the point: “But we can compensate in other ways—for example, when it comes to the procurement of building materials for the project, we can give priority to suppliers related to the Shi Group.”

Shi Fangren narrowed his eyes, weighing the pros and cons. Building materials procurement was a lucrative business, but more importantly, he genuinely believed in Qin Hao.

"Okay!" he finally decided: "Eighty million, 35%."

"It's a pleasure doing business with you." Qin Hao extended his hand.

In addition to the Shi family, Qin Hao also brought in three other Hong Kong capital firms, each investing between 20 million and 30 million yuan. The final shareholding structure was as follows: Qin Hao and Zhao Yajing held 40% of the shares through a holding company, the Shi Group held 35%, and the other three firms held a combined 25%.

In this way, although Qin Hao's shareholding ratio was diluted to 40%, it greatly alleviated his financial pressure, allowing him to free up his time to do other things.

……

After returning to Hong Kong, Qin Hao convened the second board meeting.

This time the issue is more sensitive: the use of the remaining funds.

“I suggest,” Qin Hao said, standing at the front of the conference room, “that we allocate ten million Hong Kong dollars to acquire a sugar factory and a cardboard factory. Sugar is our core raw material, and cardboard is our packaging material. Controlling the upstream will further reduce costs.”

Several directors nodded. The reason was valid.

"The remaining 60 million," Qin Hao paused, "will all be invested in the Hong Kong property market."

The meeting room erupted in chaos.

"Chairman Qin, investing in the real estate market now? Are you crazy?" An institutional director stood up: "The Sino-British negotiations are still ongoing, and the future is uncertain! How many people are selling their properties and immigrating overseas, and you want to buy in?"

"Yes, the housing market has been falling for two years already. Who knows how long it will continue to fall?"

"We should be more conservative, hold cash, or invest in some stable bonds..."

Opposition was widespread. In 1984, Hong Kong was filled with anxiety. Negotiations between China and Britain regarding Hong Kong's future reached a stalemate, and rumors swirled in the market. Many British were selling assets, preparing to emigrate. The property and stock markets were both in a slump.

Qin Hao waited until they finished speaking before slowly saying, "Everyone, I have a question for you: Do you really believe that China will abandon Hong Kong?"

No one answered.

“I don’t believe it.” Qin Hao asked himself and answered, “Hong Kong’s value to China lies not only in its economy, but also in its politics—it is a window showcasing the achievements of reform and opening up. China will not let this window be closed.”

He walked to the window and pointed to the skyscrapers in Central: "The current drop in property prices is due to panic. But the panic will pass, and the value will return. Land in Hong Kong is a scarce resource, and these office buildings and luxury homes will only become more valuable in the future. Buying now means picking up bargains when the market is at its most pessimistic."

“But what if the negotiations break down…” another director said quietly.

"The negotiations will not break down." Qin Hao turned around, his gaze firm: "There will definitely be a result by the end of the year at the latest. At that time, the real estate market will rebound sharply."

The conference room fell silent. Everyone stared at Qin Hao as if he were a madman or a prophet.

"I support it." Shi Xiaona was the first to raise her hand. She looked at Qin Hao with undisguised trust in her eyes.

Zhao Yajing bit her lip and raised her hand as well: "I support it too."

With the support of two internal directors, plus Qin Hao's own vote, that makes three votes. Two more votes are needed.

After a long silence, an older board member sighed: "Chairman Qin, I admire your decisiveness. But this matter is too risky... How about this, I abstain."

Abstaining is equivalent to acquiescing. Currently, there are three votes in favor, one abstention, and three votes remaining.

The other two board members exchanged glances. Finally, one of them raised his hand: "I agree. But not because I'm optimistic about the housing market, but because I'm optimistic about you. Chairman Qin, your previous judgments have never been wrong."

The last vote was slowly raised.

The resolution was passed.

Over the next three months, Qin Hao personally managed the operation, buying up properties in Hong Kong on a buying spree. Office buildings in Central, shops in Causeway Bay, luxury homes in Mid-Levels... he acquired properties worth HK$60 million at prices 30% below market value.

Zhao Yajing was terrified as she watched the enormous sums of money flowing out every day. But she chose to trust Qin Hao.

The time came to December 1984.

On December 19, the Chinese and British governments officially signed the Sino-British Joint Declaration.

When the news reached Hong Kong, the entire city was in an uproar.

The following day, Hong Kong stocks surged, with the Hang Seng Index rising by more than 10% in a single day. The property market rebounded even more dramatically—two years of pent-up purchasing power was released instantly, with property prices jumping 20% ​​in a single day and continuing to climb.

Those who sold off their assets to emigrate were stunned. (End of Chapter)