Chapter 327: The Enemy of My Enemy Is My Friend
Yang Wendong replied calmly, "As for shares, I'd like to invest for 30% equity. The exact amount of capital will depend on the results of a full audit of your company."
Although his team had already done some surface-level research on Maxim's Foods, that wasn't enough for a serious investment. Since it wasn't a publicly listed company, financial records and operational data weren't openly disclosed, so everything would need to be verified in full before proceeding.
The Wu brothers glanced at each other, and then the elder brother, Wu Zhan De, said, "Mr. Yang, that percentage is a bit too high."
"How much are you willing to sell, then?" Yang Wendong asked.
"15%. That's our bottom line," Wu Zhan De responded firmly.
Yang Wendong raised an eyebrow. "Only 15%? That won't bring in much capital. Especially given how much pressure Jardine is putting on you right now."
Wu Zhan De explained, "My brother and I are planning to take the company public in the future. If we sell off too much equity now, it could complicate that process later on. I'm sure Mr. Yang understands, particularly given the current circumstances with Jardine breathing down our necks."
"You make a fair point," Yang Wendong nodded. "But you don't need to worry—I have no intention of selling the shares to Jardine. In fact, I'm already in competition with them. We both operate supermarkets, and we've also started to clash in real estate.
I wouldn't say we're bitter enemies, but let's just say our relationship is far from friendly."
Wu Zhan De replied, "Mr. Yang, I mean no offense, but in business, there are no permanent friends or enemies. Two rivals today might become partners tomorrow. We've seen it happen more than once."
"You're absolutely right," Yang Wendong chuckled.
Forget businesses—even countries operated like that. Nations that had gone to war might be exchanging ambassadors a few years later.
In fact, in his previous life, Bao Yugang had once snatched Wharf Holdings from under Jardine's nose. The two parties had nearly torn each other apart—only to end up cooperating just a few years later. All for the sake of mutual benefit.
Compared to that, Yang Wendong's skirmishes with Jardine were nothing.
He continued, "It's good that you're thinking ahead, but let's talk about the present. With Hongkong Land's property control, even Carrefour can't get favorable terms.
Without enough capital, you'll be crushed by Jardine's tactics. You'll lose the business and everything you've built."
Wu Zhan De nodded slightly. "Mr. Yang is right. But even if you invest 30%, it still wouldn't be enough to stop them, would it?"
"True," Yang Wendong said, with a slight smile. "Which is why I'm proposing more than just an investment. I think we can build a strategic partnership."
The Wu brothers leaned forward, intrigued. "What kind of partnership?"
Yang Wendong replied, "You've seen the customer traffic at Carrefour, right? My idea is to open a Maxim's pastry shop inside each Carrefour location.
That way, you'll gain access to a huge customer base, and I'll be able to enrich Carrefour's offerings. It's a win-win."
In this early stage of Hong Kong's supermarket industry, stores were still little more than upgraded grocery shops. Even prepared foods weren't commonly sold yet.
When Carrefour launched, Yang Wendong didn't immediately go all-in on food service. From a business standpoint, it wasn't efficient, and more importantly, food safety required cautious, gradual implementation.
And he never planned to operate those services himself. Even in his past life, Walmart didn't make its own pastries or gourmet foods—it partnered with specialized brands.
Each industry had its own expertise. You couldn't do everything alone.
"Open a pastry shop inside a supermarket?" The Wu brothers were visibly stunned—they'd never even considered it.
Their instinctive image of a supermarket was a place to sell household goods, maybe some produce—not pastries and desserts.
But the more they thought about it, the more sense it made.
Yang Wendong continued, "Carrefour now has 35 operating stores, with 7 more opening soon, covering most of the major towns in Hong Kong and Kowloon. We'll continue to expand and open new stores in every town.
If Maxim's partners with us, it's like you're gaining access to dozens—or even hundreds—of high-traffic retail locations. Doesn't that sound like a good deal?"
"It's a fantastic opportunity," both Wu brothers agreed. They were clearly tempted.
In terms of foot traffic, some Carrefour locations were likely busier than premium spots in Central.
Yang Wendong added, "But let's be clear—this would be a standard commercial partnership. Carrefour locations are valuable real estate, and rent won't be cheap. Everything will be priced according to market rates.
Even if I become a shareholder in your company, you'll only get priority access—not special pricing."
Even within Changxing Group, fully-owned subsidiaries were required to pay each other fairly. The only exception was when Yang Wendong personally approved the temporary subsidization of a new business.
Generally, once a business was stable, everything moved back to standard commercial terms.
"Getting priority access alone would already be a big win for us," said Wu Zhan De. "In that case, I'll need to discuss this with my brother, but we would like Mr. Yang to agree to one more condition."
Yang Wendong raised an eyebrow. "Let's hear it."
Wu Zhan De said, "No matter how many shares we sell to you—if you decide to sell them later, we would like the right of first refusal to buy them back."
"This..." Yang Wendong paused briefly, then said, "That clause would place a restriction on my investment. I'll need to consider it further. Let's revisit it when we move on to the next stage of negotiations. How does that sound?"
Such right-of-first-refusal clauses are quite common in investment deals. They exist to protect the interests of the original shareholders. However, they are usually balanced with other conditions so that the buyer doesn't take on an unfair disadvantage.
"Understood," said Wu Zhan De after a moment of thought. "In that case, I'll consult with our lawyer and have a memorandum of understanding drafted. Once that's signed, we'll provide the necessary company data, and your team can proceed with the audit.
Once the valuation is finalized, we can revisit the specifics of the investment."
A memorandum of understanding, or MOU, is essentially a gentleman's agreement. It ensures the protection of shared data and trade secrets before the conclusion of a formal deal. If negotiations were to fall apart, the prospective investor wouldn't be allowed to use sensitive data obtained during talks against the seller.
This type of document is standard not only in business acquisitions but also in diplomatic negotiations, often acting as the first official step toward cooperation.
"Alright," Yang Wendong agreed. "Let's move quickly. I don't want this to drag out for too long."
Carrefour was already facing stiff competition. When there were fewer locations, customer bases didn't overlap much and operations were relatively calm. But now, in districts like Central and Causeway Bay, the two supermarket chains were stepping on each other's toes.
That meant it was time for Carrefour to offer more value to win over consumers. Bakery services were just one possible upgrade.
Of course, any innovation could be copied by rivals. So if he was going to do it, he had to do it the best. Given that Maxim's Foods had become Hong Kong's top food group in his past life, there was no better partner.
Not to mention, this investment would both bring in profit and tie up Jardine in a price war. The scale might not hurt Jardine much, but even a small distraction was still worth something.
"Understood," said Wu Zhan De. "I'll also prepare the financial data over the next few days."
"Then here's to a successful partnership." Yang Wendong stood up with a smile and extended his hand.
After a bit more small talk about the food business, the Wu brothers said their goodbyes.
Once Liu Huayu and Zheng Zhijie escorted them out and returned, Yang Wendong asked, smiling, "So, what do you think?"
"I think they'll accept the deal," said Zheng Zhijie. "It's just the specific terms that need more discussion."
Liu Huayu added, "Absolutely. Jardine's got so much property on the island, and their finances are strong. At this scale, even we at Carrefour have to tread carefully.
Even with excellent management and cost control, we can't beat their property leverage. For Maxim's, it must be even harder."
"Exactly," said Yang Wendong with a smile. "Owning your own property is half the battle in any service industry."
He continued, "But don't worry. In a few more years, even if Changxing Real Estate doesn't overtake Hongkong Land, we'll at least be on equal footing."
The more central a location was, the higher its rental burden. This wasn't unique to Hong Kong—it was a global business truth.
Zheng Zhijie nodded. "Got it. That's why our strategy is to own our real estate. Once our scale reaches a certain level, this particular disadvantage disappears.
At that point, we'll see whether Hongkong Land is still willing to burn cash to support ParknShop."
If both parties owned their buildings and had superior operations, then a price war would come down to operational strength.
"Right. And our operations still need improvement," Yang Wendong said. "Speaking of which, how are we doing on eggs and rice, those staple low-price items?"
Liu Huayu responded, "We've brought the egg price down to the lowest in Hong Kong. From imported feed to shipping, farming, and internal logistics, we manage it all ourselves. For poultry, we've invested in several chicken farms.
As for rice and flour, we can't say we're the absolute lowest. There are so many varieties of rice, and some ultra-cheap types are sold by local vendors.
We're buying from Europe and the U.S. alongside China Resources, so we can't claim the cheapest prices."
"That's fair," Yang Wendong said. "Rice isn't a single SKU. But eggs are more standardized."
He continued, "Aside from those items, we still need to enhance our customer offering. Bringing in Maxim's is one direction. But we should also offer ready-to-eat foods."
Chinese consumers love hot, ready-made meals. Even in his past life, Yang Wendong often bought them to satisfy cravings.
"Prepared food?" Liu Huayu immediately understood. "Plenty of local eateries with a strong reputation. I'll reach out to the best of them and invite them into our stores."
"Yes. If we bring them all under one roof, it'll be a major draw for customers," said Yang Wendong. "And it'll add to Carrefour's revenue."
After decades of iteration, modern supermarkets in China, Europe, and the U.S. all featured ready-to-eat food counters—because they were a win-win for everyone.
Hong Kong's supermarket scene had existed for a few years now. It was time to level up the model.
Zheng Zhijie added, "Mr. Yang, it's a great idea—but won't ParknShop just copy us?"
"They can," Yang Wendong replied calmly. "But we're already a step ahead. So your task now is to identify the best legacy food brands, and sign them before anyone else.
If necessary, invest in or acquire them. That way, even if ParknShop imitates us, they'll be left choosing from the second tier."
"Understood. The core strategy is to secure the best food vendors first," said Liu Huayu.
"Exactly," Yang Wendong nodded. "In the food business, flavor is king. This will come down to your taste and instincts."
"I'll start right away," Liu Huayu promised.
Yang Wendong added with a grin, "Also, keep an eye on Maxim's. The enemy of my enemy is my friend. I intend to invest heavily in them."
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