A century-old wealthy family that rose from Shanghai

It’s Spring Again (1979).

Villa No. 79 in Deep Water Bay at dawn.

Chen Wenjie woke up from his sleep, gently lifted the covers, and prepared to get out of bed.

"Woke up"

His wife, Zhuang Yuanzhen, was also awakened and got up. She was wearing a silk nightgown with nothing underneath, and her breasts were not large, just large enough to be held in one hand.

Ignoring her own needs, Zhuang Yuanzhen took out the suit Chen Wenjie was to wear that day and personally tidied it up meticulously for her husband.

Chen Wenjie said with a smile, "I can do these things too."

Zhuang Yuanzhen kissed Chen Wenjie on the lips and said, "You're going to do big things, so of course I'll take care of these things for you. Besides, I can spot the wrinkles better, so we can't afford to make any mistakes in this area."

Chen Wenjie put his arm around Zhuang Yuanzhen's waist and said, "You've worked so hard! Time flies, Zerui will be graduating from university this year!"

Zhuang Yuanzhen smiled and said, "What are your plans after Ze Rui graduates, Dad?"

Although the old man has 'retired,' he still has the final say on important family matters. As the 'eldest grandson,' Ze Rui is even less likely to have the final say; at the very least, the old man's approval is required.

“Dad talked to Ze Rui and, like me, suggested that he work in the US for two years first, and then find a job himself!”

Zhuang Yuanzhen didn't feel sorry for her son, but said with a smile, "That's different. You started your own business directly back then."

Chen Wenjie said casually, "This only shows that Ze Rui and the other third-generation members aren't that nervous or under that much pressure, which is a good thing. And Ze Rui is very happy with his grandfather's arrangements!"

Zhuang Yuanzhen exclaimed, "It's so good to have Dad around! The third generation of our family admires and respects their grandfather so much, which makes everyone more united and work harder!"

Chen Wenjie pointed upstairs and said, "Don't worry, Dad is in good health!"

Zhuang Yuanzhen smiled and nodded!
Soon, the family began to eat breakfast.

The elderly lady, Yang Hui, is still alive, but she is 89 years old this year and her health is not as good as before, so she did not come out to eat.

Chen Guangliang happened to be at the villa today. He and Yan Renmei were sitting in the main seats, with Chen Wenjie, Zhuang Yuanzhen, and Chen Wenjie's two sons in the background.

Of course, Chen Wenjie also has a son and a daughter who are studying abroad. His eldest son, Chen Zerui, graduated from university this year and has entered the internship stage.

The family sat down to eat together, but the scene was a bit 'strange'. Chen Guangliang and Yan Renmei both looked very young, even younger than Chen Wenjie and Zhuang Yuanzhen.

Chen Wenjie is 46 years old this year, and Zhuang Yuanzhen is 45 years old. They are both normal, at most they are in good health, or they look like they have just turned 40.

Chen Guangliang looks like he's under 40, and Yan Renmei also looks 40, but she's much prettier than her daughter-in-law.

So the art style is a bit off, but thankfully everyone has gotten used to it.

Chen Guangliang ate the ginseng chicken soup, something he could only manage to eat every morning; others didn't have the luxury of such a meal.

He ate a refined and nourishing diet, consuming a lot of food, but he also expended a lot of energy, resulting in a higher level of physical activity than the average person. As a result, even after traversing more than 50 years, he had never been to a hospital, and he never allowed doctors to examine him. He was confident and needed to protect his secret.

During dinner, Zhuang Yuanzhen said, "Dad, Siqi called recently and said she plans to apply for a PhD in three years and wanted to ask for your opinion!"

Chen Siqi is the granddaughter of Chen Guangliang. She has been studying abroad for more than half a year and is studying medicine.

By the third generation of the Chen family, Chen Guangliang no longer had many requirements regarding everyone's major. Of course, studying medicine or law was a good choice for girls.

"Okay, I'll call her back later. Medicine is a very profound and unpredictable field. It would be great to get a doctorate and work at a hospital under the Chen Guangliang Foundation in the future. If you're interested, you can also serve the foundation and benefit more people."

Chen Wenjie and Zhuang Yuanzhen's eyes lit up, and they instantly understood their father's good intentions.

The Chan Kwong Leung Foundation is an important organization within the family, and has now developed into a charitable institution focused on investment and donations. Before 1978, it primarily donated to education and healthcare in Hong Kong, with total donations exceeding HK$8 million. Since 1978, it has donated US$1 million to mainland China, with each of the four top universities (Tsinghua, Peking, Fudan, and Shanghai Jiao Tong) receiving US$1000 million. The remaining funds are mainly donated to primary and secondary schools in Shanghai and Zhejiang Province for basic education.

With Chan Kwong-leung's retirement, the foundation began to develop in a more structured direction. It not only owns 25% of Cheung Kong Holdings and 25% of Ping An Bank, but also has US$1 million in assets (gold, real estate, and securities). Chan Kwong-leung also continues to inject funds annually from the profits of the Global Group and Cheung Kong Industrial Group, and his second, third, and fourth wives also donate funds every year.

Zhuang Yuanzhen said, "That's great! Siqi wanted to call you, but she was afraid of bothering you!"

Chen Guangliang smiled. This was normal. He didn't have much energy to interfere with the third generation. Relatively speaking, he had already spent the most time with Chen Wenjie's four children.

A year later, CK Asset Holdings announced that it had acquired a 40% stake in Hutchison Whampoa, a move that sent shockwaves through the market.

At this time last year, Cheung Kong Holdings acquired a 22.7% stake in Hutchison Whampoa from HSBC. Now, just one year later, Hutchison Whampoa’s share price has only increased by 110%, but the Chan family has already increased their stake to 40%.

Despite acquiring a full 17.3% stake, the stock price increase was only slightly higher than the Ping An Index.

Of course, some industry insiders have also pointed out that Ping An Investment's transaction of a 5% stake in Hutchison Whampoa to CK Asset Holdings was a key move.

In any case, after CK Asset Holdings announced the news, Wiley's situation quickly changed.

Because once the shareholding reaches 40%, it means that Cheung Kong Group has no competitors and is a major shareholder with very heavy weight; therefore, at this time, Wei Li also began to realize that he had entered the countdown to Hutchison Whampoa.

Soon after, Wei Li arranged to meet with Chen Wenjie.

"Mr. Chen, I didn't expect Cheung Kong Holdings to act so quickly!"

Chen Wenjie said with a smile, "Mr. Wei Li, the strength of our Cheung Kong Group has probably always been underestimated."

Wei Li nodded, not dwelling on the matter any further, and asked, "What does Chen Sheng plan to do?"

He didn't directly say "step down and give way to a more capable person" because, firstly, he was unwilling, and secondly, according to regulations, he could enjoy 2% of Hutchison Whampoa's profits each year.

Chen Wenjie stated directly, "We hope Mr. Wei Li will relinquish his position as Chairman of the Board early next year. As for the General Manager position, that's up to you."

Wei Li immediately said, "No need! If I'm going to leave, I'll leave cleanly. I'll end my work this year, but according to the contract, 2% of this year's profits should be my bonus."

Chen Wenjie readily agreed, "No problem."

Of the two factions within Hutchison Whampoa, Chan Man-kit believed that Wayne Lai posed the greatest threat because he always considered himself 'the savior of Hutchison Whampoa,' which made them very resentful.

According to Chen Wenjie, Wayne Lai only put in hard work, but achieved little. Since taking over as head of Hutchison Whampoa in 1975, Wayne Lai's work has primarily involved cutting businesses, selling off non-performing assets, and restructuring the internal organization. His investment strategy has been largely passive, relying on Hong Kong's economic recovery and the rebound in the property market. There seem to be very few successful examples of proactive investment.
Therefore, Chen Wenjie does not intend to retain Wei Li, but rather to ask him to leave Hutchison Whampoa as soon as possible; as for next year, he will serve as the chairman of the board of directors of Hutchison Whampoa, and the CEO will be temporarily appointed as Richard Xin, who is currently the second-in-command of Hutchison Whampoa.

After the first matter was discussed, Chen Wenjie proposed a plan: "Mr. Wayne, I would like to merge Lane Crawford Group and Watsons Group in order to integrate their retail and trade businesses. I hope to get your support on this!"

Wei Li asked in surprise, "How do you mean by merging?"

Chen Wenjie said, "We will inject Lane Crawford Group into Hutchison Whampoa and then merge it with Watsons. Hutchison Whampoa will issue new shares in exchange for assets held by Cheung Kong Holdings."

Wei Li's mind raced. If this plan passed, Hutchison Whampoa would essentially monopolize Hong Kong's retail industry, significantly increasing its power. However, at the same time, Cheung Kong Holdings' stake in Hutchison Whampoa would likely exceed 51%, making it virtually unassailable.

"What about HSBC?"

Chen Wenjie confidently stated, "We have already communicated with HSBC, and they will support this decision!"

What's the point of saying anything more? HSBC has already agreed, so they have a majority of voting rights and it's practically a sure thing.

Wei Li understood why HSBC had switched sides: it was rumored that HSBC had received assistance from the Chen family in acquiring US-based Sinotrans. Based on its own interests, HSBC relinquished Hutchison Whampoa.

As for the matter of Wharf Holdings, HSBC could not possibly provide full assistance to Jardine Matheson, so there was no question of personal favor involved.

"This is a good thing! But it must be approved by a vote at the shareholders' meeting."

"Then I'll trouble you!"

"It's alright, it's my job. I'm just a salaried employee, things like equity are not my concern."

In his last sentence, Wayne Lai sounded somewhat dejected. He had held the position of taipan at Hutchison Whampoa for three years, enjoying immense prestige.

But now he realizes that he was just an employee.

A week later.

At Hutchison Whampoa’s extraordinary general meeting, a resolution was passed with 66% in favor and 20% against to issue new shares in exchange for Lane Crawford Group of CK Asset Holdings.

The opposition is actually quite strong, after all, CK Asset Holdings alone holds 40% of the shares and HSBC holds 13%, so the actual number of supporters is only 13%.

The reason for the opposition is actually quite simple: CK Asset Holdings' move further dilutes the interests of minority shareholders.

However, from a long-term perspective, such a merger is beneficial to the development of Hutchison Whampoa.

In this lifetime, Hutchison Whampoa no longer owns container terminals, and its retail business has been weakened.

Overall, Hutchison Whampoa's main businesses are:

Hutchison Whampoa, the parent company, owns a large amount of land and property, and its businesses include real estate, ship repair, manufacturing, and transportation.

Hebao, a subsidiary, mainly engages in import and export trade, commerce, machinery, automobile sales, and building materials supply, among other things.

Watsons, a retail giant;

Hutchison Properties, real estate industry;
Capital City Real Estate; Real Estate Industry;
Junyi Warehouse is a large-scale port warehouse enterprise.

Anderson Pacific, a large-scale quarrying company;

Harbor engineering, construction companies;
Hutchison Whampoa has a total of eight 'first-tier companies', and most importantly, it possesses a group of outstanding management talents.

CK Asset Holdings Limited.

Chen Wenjie reported his work to his father, who, although retired, only made public statements. In reality, his father remained the one directing them from behind the scenes.

After listening, Chen Guangliang said, "When you become the chairman of the board next year, you must first continue to cooperate with Richardson and other British management members to further participate in the development of Hutchison Whampoa. Do not be arrogant or impetuous!"

Chen Wenjie immediately understood his father's meaning. He said, "Father, do you think Richard and other senior executives are still dissatisfied? But now that we hold 51.5% of the shares, they won't do that, will they?"

Chen Guangliang said with a smile, "Whether they are convinced or not, they are, after all, high-level executives from the Qi Dezun era. They are not very convinced of Wei Li, and they may not be convinced of you either. Therefore, Richard Xin is not the most suitable CEO."

Chen Wenjie nodded and said, "Okay, I'll remember what you said, Father."

Then, Chen Guangliang continued, "Next year, after you become Chairman of the Board, have Hutchison Whampoa establish 'Hutchison Paging' to quickly acquire paging companies in the market and increase its market share to over 50%, preparing for the future telecommunications industry. Motorola in the United States made the first mobile phone call in 1973. If nothing unexpected happens, the 1980s will see humanity enter the mobile phone era, enjoying convenient communication anytime, anywhere. Hutchison Whampoa's future lies in the telecommunications industry."

Chen Wenjie thought to himself, "My father has such a long-term vision. No wonder he has always been one step ahead of others for decades and rarely makes mistakes in judgment."

“Okay. I will also take this opportunity to start working at Hutchison Whampoa.”

At that time, Hutchison Whampoa was represented by only two directors from Cheung Kong Holdings: Executive Director Chan Man-kit and Director McLeish.

A moment later, Chen Wenjie asked, "Father, about the acquisition of Hong Kong Electric?"

"No rush, let's slow down and let things proceed naturally. You need to understand that you four brothers are already quite prominent and attract a lot of attention. There are some things we can do better. I observe that the new general manager of Hongkong Land, Paul Bo, is not as timid as the Keswick family. He is determined to bring Hongkong Land to a peak, but also to an abyss. Therefore, there are some things we need to acquire with more sophisticated methods, rather than fighting with others. To put it another way, if we want, Hongkong Land can be on our menu."

Chen Wenjie was shocked. Compared to his father, he was still far behind!

He also summarized his father's remarks over the past two years and came to the conclusion that there might be a major crash in the early 1980s due to the question of Hong Kong's future.

Therefore, if Cheung Kong Holdings were to engage in a fierce battle with Hongkong Land over the ownership of HK Electric and the Central Bus Terminus, even with its formidable strength, Cheung Kong Holdings might find itself in a minor predicament.

Clearly, the father wasn't worried about losing these things to them. Even if Hongkong Land acquired them first, the father had ways to make Hongkong Land give them back. To put it bluntly, directly acquiring Hongkong Land seemed to be the easiest option.

"Ok, I see!"

"Regarding this Wharf Holdings takeover battle, people say that 'Hongkong Land is cutting its losses with a smile,' which also means that the acquisition by Universal Group was not smart enough. Of course, they don't understand the strength of Universal Group, so there's nothing wrong with saying that. But Cheung Kong Holdings is different. It is essentially a publicly listed company, so it needs to be smarter in its actions, and it's not necessary to buy assets."

"Yes, father"

Cheung Kong Holdings' acquisition of Hutchison Whampoa has already opened up channels for investing in Europe and America. As for other assets, they can be acquired naturally. While Hong Kong Electric is also a must-have, the methods used will need to be more astute. (End of Chapter)