Chapter 188: The Rise of Changxing Shipping
The group gradually dispersed; the excitement of seeing a new ship had run its course.
Sun Zhiwei then asked, "Mr. Yang, this ship is currently named Wilson. Now that it's registered in Hong Kong, do you want to give it a Chinese name?"
"Mhm," Yang Wendong nodded. "Let's call it Shun'an—'Smooth and Safe.'"
He had originally wanted to use the character "Jin" (Gold), a favorite among Chinese shipowners, but since Bao Yugang had already used it, he decided on something different.
"Understood," Sun replied.
The Shun'an cargo ship soon departed again, heading to the Whampoa Dockyard for inspection.
A week later, after a comprehensive check found no major issues, Yang instructed Standard Chartered Bank to release the remaining payment and finalized the transaction with the European seller.
At that moment, Changxing Shipping officially owned its first vessel.
After leaving the Whampoa shipyard, the Shun'an immediately set course for the Kowloon Wharf terminal.
The dock had already reserved a spot. As soon as the ship arrived, hundreds of workers began frantically loading cargo into the hold.
By the next morning, after 28 hours of nonstop work, 66,000 rolling suitcases were fully loaded onto the ship.
Then the vessel set off for the United States.
Inside an office at Kowloon Wharf, Yang reviewed the numbers on a printed report. "Loaded in just 28 hours. That's impressively fast."
Sitting next to him, An Yongqiang agreed. "Absolutely, Mr. Yang. I've worked on the docks for over 20 years, and I've never seen loading go this quickly.
Your goods are lightweight and neatly packed. Workers find them easier to handle. Plus, you treated the crew well—they were extra motivated."
"It was just a few meat buns," Yang chuckled.
He'd had Changxing employees bring extra food for the dockworkers. The buns gave them more energy, and the lightness of the suitcases made loading a breeze.
An smiled. "Still, those buns saved them the cost of a meal. Other bosses wouldn't spend the money."
"From now on, every time we load cargo, there'll be food provided," Yang replied.
After all, Changxing's kitchens were already producing meals every day. A few more workers and a little extra flour and pork wouldn't cost much.
"Then I'll assign our most efficient workers to handle your shipments," An said with a nod.
After a while, Yang and Wei left the terminal.
On the road:
Wei said, "Mr. Yang, according to Captain Sun, if we push the speed, the ship can reach Los Angeles in three weeks.
3M has already contacted the port to expedite unloading. Also, our team has arranged to purchase 8,000 tons of plastic pellets in LA. They'll ship back with the vessel.
This way, at least for now, we no longer depend on the local foreign trading houses."
"Excellent," Yang nodded. "How does the cost compare to buying from trading companies here?"
"It's slightly cheaper, but not by much," Wei replied. "We're still not purchasing directly from the manufacturers in the U.S.
We're buying from American distributors, who still take their cut. Fortunately, our own shipping costs are very low.
Otherwise, using third-party freight would be even more expensive."
Yang frowned. "We're buying thousands of tons. Why can't we go directly to the factories? We'll need even more later."
Wei explained, "Impossible. Most American manufacturers have exclusive agreements with regional distributors.
Unless we sign a long-term contract specifying that the goods are for export to Hong Kong, they won't sell directly.
And since we'll only be buying for a short time, it's not worth their while."
Yang asked, "What about Japan? Their prices should be cheaper, right?"
"Actually, no," Wei said. "Japan has its own plastic production, but demand is even higher. They're still importing too.
So their prices are higher than in the U.S. The upside is lower freight costs and shorter transit times.
When you factor in everything, it evens out. But our only ship right now can only run to the U.S."
"We'll expand the fleet, but Taiwan's supply will likely catch up first," Yang said. "It's best to start sourcing from there as soon as possible.
Even on return trips, it would be good to bring back other goods. How are things going with Wang Yung-ching?"
Even in the future container era, transport costs for industrial goods were a key concern.
That's why industrial zones tended to cluster—cost and efficiency went hand-in-hand.
In this era, sea freight and communication were even more expensive.
Since Hong Kong couldn't produce plastic pellets from raw materials, nearby Taiwan—with its future giant Formosa Plastics—was the logical partner.
Wei replied, "Our team has commissioned a third-party audit of Formosa Plastics. So far, there are no major issues.
Some minor ones were found, but they appear to be genuine oversights, not deliberate concealment. They likely didn't even know themselves."
"That's good," Yang said with a smile. "This gives them a chance to clean up their operations."
"Yes," Wei continued. "By our estimates, Mr. Wang values his company at about $2 million. He's offering 20% equity, which means we'll need to pay $400,000.
But he wants all of it injected into the company to fund Phase Two. So the total investment will be $500,000."
"No problem," Yang said. "Invest in Formosa Plastics under the name of Changxing Industrial. We'll take the 20% stake."
If Wang Yung-ching were pocketing the $400,000 personally, then Changxing would just pay that amount.
But since the funds would go into the company account, it was effectively a capital increase. Wang was adding $400,000 with his 80% ownership, so Changxing's 20% share required a $100,000 contribution as well—hence the total $500,000.
Yang didn't mind at all.
He knew full well that this investment would pay off many times over in the future.
"Alright. We'll try to negotiate the price down a bit during the final talks. If all goes well, we'll be ready to sign the deal soon," Wei Zetao said excitedly.
Securing a stable, nearby supplier of core materials was a huge win for Changxing Industrial. For the company's long-term development, this was a major milestone.
Yang Wendong asked, "Any issues with funding?"
Wei smiled. "No problems at all, Mr. Yang. Phase two of the Post-it production line is up and running. Right now, our monthly net profit is already over HK$1.5 million.
The rolling suitcase business is only a few months old, but it's already bringing in over HK$200,000 a month. If we successfully crack the U.S. market, it could even surpass Post-its to become our most profitable product.
Hooks and spin mops are a bit weaker, but they still bring in tens of thousands each month, and those markets haven't even fully opened up yet."
"Excellent," Yang nodded in satisfaction. "We've cleared all our previous loans, right?"
His products did face some piracy issues—that was inevitable and hard to solve. But even with knockoffs on the market, his factories remained highly profitable thanks to their scale and reliable distribution partners.
"Yes. We've fully repaid both Liu Chong Hing Bank and Hang Seng," Wei confirmed. "In fact, both banks approached me recently, encouraging us to take out more loans. But after running the numbers, I don't think we need it.
Most of our plastic-related products are outsourced. Even if we co-invest in suppliers, the capital needed isn't that large—our own cash flow is more than enough."
"Good. That means Changxing Industrial is now the cash cow of the whole group," Yang said with a grin. "Every large business needs a reliable division that stays profitable no matter what. That's your role now.
My expansion into real estate and shipping will rely heavily on your support."
Both real estate and shipping had more upside than manufacturing—but they also took more time and capital. With Changxing's strong profits, Yang could now support his push into these new high-yield industries.
"Mr. Yang, you're being too kind. Supporting the rest of the group is our duty," Wei said modestly.
Yang nodded. "For now, keep coordinating with Changxing Shipping. We need to expand our fleet quickly so our products don't get bottlenecked in Hong Kong."
He was reminded of how, in his previous life, BYD had fantastic electric cars, but because they lacked roll-on/roll-off ships, they couldn't get them to foreign markets.
Shipping was often the unseen but critical link.
Wei added, "We've already found a good candidate for the general manager position at Changxing Shipping.
She's a deputy general manager at Wheelock Shipping. Our headhunter is already in talks with her."
"Wheelock?" Yang raised his brows. That was one of Hong Kong's top-tier shipping firms.
While Sun Zhiwei was Changxing Shipping's first hire and ship captain, he didn't have the right background to manage an entire shipping company. That role required someone with corporate experience.
"Yes," Wei confirmed. "She looks like a good fit. I'm planning to schedule a meeting. Would you like to join?"
"I'll be there," Yang said. "In the short term, our ships serve Changxing Industrial. But in the future, we'll be doing open commercial shipping."
Before the 1980s, shipping had a bigger footprint in Hong Kong than real estate. Shipowners held massive influence—an order of ships could bring foreign ministers to Hong Kong for talks.
Real estate moguls, no matter how rich, couldn't match that kind of power.
"Understood. I'll notify you once we finalize the time," Wei said.
...
Three days later, Yang met with the deputy GM from Wheelock Shipping—Zheng Yuhua.
She was one of the rare Chinese women who had climbed to an executive position within a major British firm.
If it weren't for the fact that British companies rarely let Chinese staff reach the top, she might have already been promoted to GM.
After the interview, Yang was very impressed. The conversation went smoothly, and Zheng officially joined Changxing Shipping.
"Ms. Zheng, welcome to Changxing," Yang said.
"Thank you, Mr. Yang. I'm honored to join," Zheng replied with a smile.
Yang continued, "Your first major task is to help us acquire several WWII-era cargo ships from the U.S. Once you're onboard, this becomes your top priority."
"Understood," Zheng nodded. "I'll get in touch with our contacts in the U.S. and start digging for data. If necessary, I'll fly there myself."
"Good," Yang said. "Also, we need to recruit the staff now. We can't buy ships and have no one to sail them."
Zheng laughed. "Of course. I'll begin hiring immediately.
I know a lot of people in this field—captains, first mates, engineers. As a manager myself, I know ship quality inspections also require captains, engineers, and naval architects."
"Great. Let's move everything forward at the same time," Yang said.
And with that, Changxing Shipping officially took its first steps.
...
The sudden appearance of a newly-registered, 10,000-ton Hong Kong cargo ship naturally attracted media attention.
Reporters began digging and quickly discovered the truth: the "Post-it King" had entered the shipping business.
News soon spread across the city via the newspapers.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 20 Chapters In Advance: patreon.com/johanssen10