Bab 300: Chapter 300: Must Have Its Own Power
While the factories in Hong Kong might not be as large as those in the United States, they are among the largest in Asia. If all the over 100 companies in the Kowloon Tong Industrial Zone were to relocate, each contributing approximately USD 100,000 annually, the total income could exceed USD 10 million. This would be a substantial revenue stream.
Additionally, these enterprises have room for growth. Hong Kong is set to become a major re-export port in the East. Until other Asian countries rise to compete, business here is expected to thrive. By the late 1970s, as the Chinese market evolves, these factories could be relocated to the mainland, forming a new industrial cluster.
Modern machinery is crucial; using outdated equipment is not an option. The land in Hong Kong is becoming available, and with the real estate market booming, constructing new buildings here could be highly profitable.
After leaving the Kowloon Tong Industrial Zone, Victor took Hardy to the penicillin factory. This factory, a joint venture with Mersey Pharmaceuticals, had Hardy holding 70% of the shares, while Mersey provided technical expertise.
Nearly a year into construction, the factory was nearing completion. The facility had been acquired from an existing pharmaceutical company in Hong Kong. Equipment was imported from the United States, and technicians from Mersey Pharmaceuticals, known for their expertise, were on-site, making success highly likely.
The factory director, a member of the Hardy Group, greeted Hardy with a team at the entrance. As Hardy toured the factory, he learned that the two key stages of penicillin production are fermentation and extraction. The process involves cultivating a medium, harvesting it, and then extracting the penicillin.
"Boss, we're currently conducting training experiments. If these are successful, we can begin full production in about half a month," the factory manager reported with a smile.
"What about the output?" Hardy inquired.
"The design standard is a monthly output of 800,000 bottles. An annual output of tens of millions of bottles should be feasible," the director replied.
Although the scale is smaller compared to Mersey Pharmaceuticals and Pfizer, this factory will initially serve to acquire the technology.
"And the cost?" Hardy asked.
"The cost of producing a bottle, considering ingredients like corn syrup and lactose imported from Mersey Pharmaceuticals, and including sterile bottles, is about $0.16."
Hardy noted that the cost was relatively high. However, with China's future capabilities for mass production, penicillin prices would eventually drop significantly, though that might be over a decade or two.
After leaving the pharmaceutical factory, the sky had darkened. The motorcade returned Hardy to the Mid-Levels villa, where Han Yezhen greeted him in casual attire.
"You're tired; dinner is ready and waiting for you," Han Yezhen said as she helped Hardy with his coat and brought him slippers, making him feel welcomed after a busy day.
Dinner was elaborate, with dishes such as Wenchang Chicken, Honey Sauce Beef Brisket, Cooked Tai Chi Shrimp, Bergamot Ribs, Steamed Grouper, Mandarin Duck Cream Crab, and Bird's Nest Shark's Fin Soup.
Han Yezhen sat beside Hardy, serving him with care, while she ate very little herself. Hardy appreciated the home-cooked meal, commenting, "This is much more comfortable than the reception yesterday. If I'm here in the future, let's stick to home-cooked food."
"Of course," Han Yezhen replied, placing crab meat on his plate and feeding him gently.
As they dined, Hardy asked, "What did you do today?"
"I visited the construction site in the morning, then went to the auction house. Victor had mentioned that they had acquired a collection of Tang Dynasty gold artifacts. I went to inspect them," Han Yezhen explained.
"In the afternoon, I visited the vegetable market with Aunt Wang. We discussed our options while shopping, then came back to prepare dinner and wait for you."
Hardy listened attentively, enjoying the warmth of her presence.
"What were the Tang Dynasty artifacts like?" Hardy asked.
"There's a pure gold jewelry box containing gold hairpins, hosta, and other items, likely from a royal family. There are also gilt tin mirrors, golden basins, bowls, and flagons. Additionally, there are two pure gold Buddhist scriptures with special engravings and a golden pagoda with a sealed mouth. In total, there are over 200 pieces," Han Yezhen detailed.
She leaned in and whispered, "Victor mentioned that these items were sent by Mr. Kong. I suspect they might have been unearthed from a Tang Dynasty royal tomb."
Hardy pondered the implications, considering the possibility of tomb robbery.
After dinner, Hardy and Han Yezhen took a walk in the yard, eventually settling on a bench. With Han Yezhen nestled in Hardy's arms, they gazed out at Victoria Bay, illuminated by the city lights and the occasional siren.
Under the full moon, the scene was beautiful.
"Do you miss home?" Hardy asked.
"Yes, I miss my parents and siblings, and it's been a while since I've seen them," Han Yezhen replied.
"Why don't you come back with me? There's not much keeping you here," Hardy suggested.
Han Yezhen shook her head. "I need to oversee the museum's development. I've decided to stay in Hong Kong. If you have time, you can visit me here."
Hardy understood her decision. Despite the many women in his life, Han Yezhen was unique. Her Western upbringing had fostered independence, yet she retained an undeniable elegance and intelligence rooted in her heritage. She was not just another part of his life in the U.S.; here in Hong Kong, she was special.
Hardy's frequent visits to Hong Kong, made easy by his private jet, allowed him to maintain his relationships and focus on his business. He recognized that Han Yezhen's presence here was crucial for both their personal and professional lives.
That night, as they were alone, Hardy did not take precautionary measures. If Han Yezhen were to become pregnant, their future child would likely be both beautiful and intelligent. Han Yezhen was the first woman Hardy considered having a child with.
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The following day, Hardy and Han Yezhen visited the auction house. The building, once a bank with a European-style facade and a large vault, now housed a collection of antiques.
Victor explained that this was just a fraction of their acquisitions. As more antiques were bought, they had acquired an additional building to store larger items. The vault now held valuable smaller items such as jewelry, jade, gold, famous paintings, books, and fine porcelain.
Han Yezhen, passionate about antiques, took some items to an appraiser for further examination. She planned to research their origins and compile a preservation catalog, a significant undertaking.
In the office, Hardy and Victor discussed the security and intelligence companies.
"Have you decided on the locations for the security and intelligence companies?" Hardy asked.
"There are two options. One is in Wanchai, the former clubhouse of Deli Foreign Company. It covers 68 acres, with buildings and convenient transportation. The other is in Tsim Sha Tsui, a former furniture factory. It spans 36 acres, with a three-story office building and factory space. It's cheaper but requires renovation," Victor explained.
"Acquire both locations and establish two security branches. It will simplify operations," Hardy decided.
"Understood," Victor noted.
Hardy also sought approval from Governor Grantham for the security company to possess weapons. Grantham was hesitant but eventually agreed. Hardy planned to organize his own security force to protect his interests in Hong Kong.
With a growing influx of people and the presence of various criminal organizations, Hardy knew he needed robust security. His goal was for HD Security Company to become a formidable force in Hong Kong, commanding respect and ensuring the safety of his ventures.
Bab 301: Chapter 301: Industrial Consolidation and Enclosure
The next day, Hardy began his inspections with Wells Fargo Bank. Located in Central on Hong Kong Island, Wells Fargo's office, formerly a foreign bank, occupies a prominent position on Hong Kong's Financial Street.
President Sandy Weir briefed Hardy on the bank's performance over the past year, which had been stable despite the challenges. While Hong Kong still has HSBC, Hardy's strategy divides their roles: HSBC manages general business operations, while Wells Fargo acts as a core engine for the Hardy Group.
In the future, the Hardy Group's funds in Hong Kong will primarily flow through Wells Fargo, ensuring that the group's industrial core remains discreet.
After leaving Wells Fargo, Victor and Sandy accompanied Hardy to HSBC, situated just a few hundred meters away. As they arrived, a group of senior HSBC executives and managers awaited him, drawing the attention of curious onlookers.
Hardy exited the car, and HSBC President Sanders promptly greeted him. The crowd buzzed with speculation about Hardy's impressive background.
As Hardy approached the HSBC building, he paused to observe the structure. The building, the third generation of HSBC's headquarters, was a 13-story edifice with bronze lions flanking the entrance. These lions had a storied past, having been relocated during the Japanese occupation of Hong Kong and eventually returned by the U.S. Army.
Despite superstitions linking the displacement of these lions to misfortune in Hong Kong, Hardy, who typically does not believe in such notions, took a moment to address the lions directly. "Remember, no matter how things change, these bronze lions must remain where they are," he instructed. The staff nodded in agreement, acknowledging the boss's directive.
Inside the conference room, Hardy listened to reports from HSBC's management. Although the bank faced financial difficulties, with Wells Fargo and Manhattan Bank having provided substantial support, the situation was manageable. Sanders outlined plans to tighten financial controls, reduce loans, and restore depositor confidence.
Hardy offered his strategic insights: "Firstly, this is a good time to attract deposits. HSBC and Wells Fargo must intensify efforts in this area."
"Secondly, the Hong Kong stock market is currently limited. While there were three major exchanges in mainland China, Hong Kong's market remains relatively small, with only around 30 listed companies. I propose establishing a new stock exchange—perhaps the Far East Stock Exchange or the Kowloon Stock Exchange—to provide a platform for a broader range of companies, including those in shipping, hotels, real estate, and other sectors. This would stimulate financial activity in Hong Kong."
The executives were taken aback by Hardy's ambitious plans. The idea of creating a new stock exchange and transforming Hong Kong into a major financial center was both bold and impressive.
Hardy then addressed the organizational structure of the Hardy Group's operations in Hong Kong. "HSBC will continue to operate independently under its own board of directors. Wells Fargo Hong Kong will remain a branch of Wells Fargo Bank and will report to its headquarters."
"The Hong Kong branch of HD Security will operate independently as well. Global Times and ABC TV stations will be directly controlled by higher authorities."
"For other industries, we will establish a Hong Kong branch of the Hardy Group, managed by Victor. This branch will oversee all enterprises in the Kowloon Tong Industrial Zone, the penicillin company, the auction house, and Hardy Properties."
Victor would later need to find a suitable building for the Hong Kong branch headquarters. Hardy also planned for Han Yezhen to continue managing the auction house, given her expertise in antiques.
Back at the Mid-Levels Villa, Hardy and Victor enjoyed a warm afternoon in the backyard, sipping coffee and discussing future plans. Hardy posed a new question: "Victor, where do you think we should build a racecourse in Hong Kong?"
Victor was surprised by this shift in focus. "Are you considering building a racecourse?"
Hardy nodded. "The Hong Kong Jockey Club is a gathering place for the upper class and holds significant influence. Establishing our own racecourse is just the beginning. We need to join the Jockey Club and gain a say in its operations."
"Currently, there are few Chinese members in the Jockey Club. By establishing our own racecourse and joining the club, we can attract more Chinese members and build a new force in Hong Kong's financial landscape."
Victor suggested the large piece of land in Sha Tin, but Hardy decided on Kowloon. "Find a piece of land larger than Happy Valley in Kowloon for the new racecourse. We can consider Sha Tin later. Kowloon offers better accessibility now, and we can relocate the racecourse to Sha Tin when infrastructure improves. This will also allow us to capitalize on valuable land in Kowloon in the future."
Hardy's forward-thinking plans included the potential to relocate the racecourse later and maximize its value as Hong Kong's land becomes more valuable.
Victor understood Hardy's vision and agreed to find a suitable location for the racecourse and the Hong Kong branch headquarters.
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