Chapter 189: Successfully Investing in the Formosa Plastics Group
Clear Water Bay, Hong Kong Island – in a private villa.
A stern-looking middle-aged man sat reading the newspaper. Beside him, two young men were eating breakfast.
"Seems like any young punk can get into the shipping business these days," the middle-aged man said with a chuckle as he folded the paper.
"Father, what's going on?" asked the elder of the two sons.
The man handed him the paper and replied, "See for yourself. Some twenty-year-old kid made a bit of money from his factory and now thinks he can do shipping too."
"Twenty?" the young man raised an eyebrow. "This is the Post-it King, Yang Wendong? He's getting into shipping now?"
"The Post-it King?" the younger one perked up. "I heard he also entered the real estate market. Bought a big plot in Admiralty—cost at least one or two million, right?"
"Shipping and real estate?" The father frowned. "Jianhua, what's the story with this 'Post-it King'?"
"You don't know?" asked Jianhua, surprised.
The father replied, "I've heard of him, sure. But Hong Kong's full of so-called 'industrial kings' these days—plastic flowers, Post-its, chemicals. Too many to count."
"True, they don't compare to your reputation as a shipping tycoon," the younger son said with a smile. "But this guy's different. He's a real rags-to-riches story."
"Yeah, once I learned how he got started, I couldn't help but admire him," said Jianhua.
This family, naturally, was one of Hong Kong's prominent shipping dynasties—the Dong family. Their father was none other than Tung Hao-yun, a legendary name in the city's business world.
But since the Dong family's business focused entirely on maritime trade, he wasn't especially tuned in to rising entrepreneurs in Hong Kong.
As Jianhua recounted Yang Wendong's journey from a teenage street vendor in the wet market to a multi-industry mogul, Tung Hao-yun nodded slowly in approval.
"That suitcase design of his—I've been using one myself. Very convenient. I didn't realize it was invented by someone from Hong Kong."
"It is," said the younger son. "And lots of people I know really admire his story. He's totally self-made."
"Making it from nothing is no easy feat," Tung said. "From what I'm hearing, this Yang kid is no joke. If he's entering shipping now, he might very well become a serious rival someday."
"I'm not so sure," Jianhua replied. "From the article, it sounds like he's getting into shipping to serve his own exports—not really to challenge people like you."
"That's where you're wrong," Tung said, shaking his head. "In business, whether someone enters a field doesn't depend on what they want—it depends on where the growth takes them.
He's buying ships to transport his own goods. With his own product pipeline, he doesn't even have to worry about finding clients. That already puts him a step ahead of Bao Yugang in the early days.
Once he sees how profitable shipping can be, of course he'll expand."
"You're right, Father," Jianhua said quickly.
Tung continued, "If you have the chance, try to meet the guy. You're both young—you might actually hit it off."
"Yes, I'll look for an opportunity."
"Oh, and I'm heading to the U.S. soon. There are a lot of second-hand cargo ships up for sale. While I'm gone, spend more time with the senior staff. Learn the ropes."
"I will," Jianhua promised.
…
Meanwhile, in a Central office on Hong Kong Island:
"Mr. Bao, have you heard? There's a new player entering the shipping industry," said a man in his 40s as he walked in.
Mr. Bao looked up. "Who?"
Anyone entering the shipping world had to be a serious heavyweight. When Bao Yugang had entered the industry, it had shocked the entire business world.
"It's the Post-it King—Yang Wendong. Apparently, his new product is a suitcase. Needs to be exported to the U.S. in large quantities, so he bought his own ship."
"Exporting large quantities?" Bao flipped through the newspaper. "Damn, if I'd known earlier, I could've leased him one of my ships. Would've been a good deal."
The visitor laughed. "You really are always thinking about leasing ships. But now it looks like you've got a new competitor.
Yang's no small fry either. I asked around the docks—his exports are massive. He's got shipments going all over the world."
"This has nothing to do with us," said Bao Yugang with a casual laugh. "We've only got, what, fewer than ten ships? Even if he makes it big, it won't affect us."
"Fair enough," his companion replied, then asked, "So have you made up your mind? Planning to head to Japan to buy new ships?"
Bao nodded. "Yes. The older secondhand vessels just can't fetch a good charter rate anymore. These days, Japanese leasing companies only want newer ships."
"A new ship goes for more than a million U.S. dollars," the man said hesitantly. "Where are you going to get that kind of money?"
Bao sighed. "I'm planning to try HSBC."
"HSBC? That could be tricky," the man said.
Bao shook his head. "If you don't try, how will you ever know if it's possible?"
...
The maiden voyage of Changxing Shipping's first cargo vessel caused a minor stir in Hong Kong, but the excitement quickly faded. After all, it was just one ship.
Most of the big British firms probably didn't even bat an eye at the news.
By mid-September, Wei Zetao brought word from Taiwan: the negotiation team had reached an agreement with Wang Yung-ching, and they were preparing to sign the deal.
For Yang Wendong, the opportunity to invest in what would become Taiwan's largest corporation was far more important than simply getting into shipping or real estate. He planned to travel to Taiwan in person.
This time, he flew—Su Yiyi wouldn't be going. She was now in her first trimester and under strict bed rest. Even if she still helped with some business tasks, she was surrounded by medical staff and security.
Upon arrival in Taiwan, the team leader Fang Zhijue greeted him and said, "Mr. Yang, this is the finalized contract we've negotiated with Mr. Wang's team. It's the same as the one I previously mailed to Hong Kong."
"Great. Thank you for your hard work," Yang said, accepting the agreement and flipping through it.
"You're too kind, Mr. Yang—this is our job," Fang replied. "Mr. Wang still values his company at US$2 million, but he's agreed to let us invest US$495,000 for 20% equity. He only conceded an extra US$5,000 off the original price and wouldn't budge on the share percentage."
"That's fine," Yang nodded. Getting a 20% stake in what would become Formosa Plastics was already a major win. If the company eventually went public, he could still acquire more shares through the market.
But even then, he'd never try to compete with Wang Yung-ching for ownership. His main objective was a long-term, stable supplier of plastic raw materials for his industrial empire.
Fang continued, "The agreement also stipulates that after the equity deal, we must bring in a Hong Kong bank loan to help finance the new factory."
"That's not a problem," Yang said with a smile. "Plenty of banks in Hong Kong will line up to provide that loan."
With guaranteed purchase orders from Yang's companies and his rising influence in the Hong Kong business world, securing financing would be easy.
After reviewing the full agreement, Yang said, "Alright, then let's move forward. We'll sign the contract tomorrow."
"Yes, Mr. Yang." Fang collected the paperwork.
...
The next day, Yang and his team returned to the Formosa Plastics facility.
"Mr. Yang, I heard you've entered the shipping industry—congratulations!" said Wang Yung-ching with a broad smile.
"Haha, Mr. Wang, you've got impressive sources," Yang replied with a laugh.
"It's nothing, really," Wang said. "Now that you'll be a major shareholder in my company, I naturally need to keep an eye on your ventures."
Normally, Wang didn't pay much attention to Hong Kong news. But now that his main future market would likely be there, he had started keeping tabs—especially on major clients.
"I'm glad to be investing in your company," Yang replied.
"Please, come in," Wang said, gesturing toward the conference room.
Everyone entered. The signing process was straightforward. Both sides, along with their legal teams, reviewed the agreement one final time.
After confirming all the details were accurate, the two bosses signed their names.
Yang shook Wang's hand and said, "Mr. Wang, here's to a successful partnership."
"Likewise," Wang replied, clearly pleased. This partnership brought a substantial capital infusion and a reliable major shareholder.
Yang added, "The funds will be transferred to the joint company's account within three days. After that, you'll need to immediately begin construction on the new plastic production facility."
Though Formosa Plastics would one day generate enormous returns on investment, Yang's more immediate concern was securing a stable, nearby supply of raw materials.
"Absolutely, Mr. Yang. I've been eager to start," Wang replied.
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