Through the wealth life

Chapter 531 Price War

After sending Henry Keswick away, Li Guangyu immediately asked Ganqin to inform Li Xuelan to return to Hengyu Supermarket Group, and at the same time inform the senior management of Hengyu Group to hold a meeting in his meeting room at 11:30.

Li Guangyu knew that after being rejected here, Henry Keswick would definitely make the next move, but faced with threats from outside Hengyu Supermarket and Watsons, and pressure from internal shareholders, once Henry Keswick failed to get the two major With the support of the bank, Wellcome Supermarket is likely to choose to close down.

Li Guangyu had to make preparations in advance. This time it depended on whether HSBC and Standard Chartered would make another move. If these two local tyrants entered the arena, the battle would have to drag on for several months.

Li Guangyu is waiting. He knows that once the property market crashes, Jardine will face the risk of a thunderstorm. Their assets will depreciate significantly. If the shareholders of Jardine don't inject capital into it, they can only sell some of their businesses. And Wellcome will obviously be a priority asset.

When Li Guangyu and Gan Qin walked into the meeting room, Li Xuelan and a group of high-level executives from Hengyu Supermarket Group were already waiting for Li Guangyu's arrival.

Regarding Li Guangyu's sudden high-level meeting, they all wanted to know if something important had happened.Because the time of this meeting was too sudden, usually the meeting would not be held in such an urgent manner.

Li Guangyu told the high-level officials about Henry Keswick's meeting with him and Henry Keswick's plan.

As soon as Li Guangyu finished speaking, Li Xuelan said: "Li Sheng, we cannot agree to Henry Keswick's proposal, otherwise our efforts for the past few months will be in vain."

Although the competition of the three major supermarkets has led to the closure of a large number of small and medium supermarkets in Xiangjiang, the Wellcome Supermarket still exists. Li Xuelan believes that this action is a failure because the ultimate goal has not been achieved.

Not only did Li Xuelan disagree with the end of the fight with Jardine at this time, but the senior management of Hengyu Supermarket Group also opposed the peace talks with Jardine.

If it weren't for Watson's Li Guangyu being the second largest shareholder, they would all be determined to kill Watson's together, and Hengyu Supermarket would dominate the Xiangjiang market.

Li Guangyu said: "Don't get excited, I don't want to agree with Henry Keswick's proposal. The reason why this meeting is held this time is to discuss with you the possible situation in the future and how we will develop next. .”

After hearing that Li Guangyu had no plan to negotiate peace with Jardine Harmony, Hengyu's executives felt relieved.

They have worked so hard for the past few months to suppress Wellcome. If Li Guangyu suddenly called a stop at this time, it would make them feel very uncomfortable. .

Afterwards, Li Guangyu told the senior management about what might happen in Wellcome Supermarket, and asked them what they thought about it.

Li Xuelan knew that there were a lot of troubles in a listed company when there were too many shareholders. Just like Hutchison Whampoa, when making money, those small shareholders were very kind and expressed their support for everything at the meeting.

Once a company becomes unprofitable or even loses money, these minority shareholders will jump out and ask those in power to solve this problem immediately. They are all here for profit. Thinking about quitting the company.

If it belongs to a subsidiary company, these small shareholders will let it deal with it, so as to avoid the subsequent damage of the group. It is estimated that Jardine is now facing such a situation.

Li Xuelan even felt that Henry Keswick was already facing a decision, otherwise he would not have come to discuss with Li Guangyu.Because at this time, whoever consults with the other party shows that the group cannot stand it anymore.

She said to Li Guangyu: "Li Sheng, now we need to make two preparations. First, if Wellcome closes, our two supermarkets must be prepared to increase the number of employees. The customer flow of Wellcome Supermarket will increase their sales by half." The workload, we have to deal with it in advance.”

"The second situation is that HSBC and Standard Chartered will help the Wellcome Supermarket in order to let the Jardine Group continue to hold us back. It is not even ruled out that their two banks will take over the shares of the minority shareholders of the Jardine Holdings Group. Then we will Further action is required."

The high-level executives here have also begun to express their views. Now that the problem of increasing manpower has begun, the high-level executives present have no objections. Even if Wellcome does not go bankrupt, they should reserve talents in advance.

Hengyu Supermarket Group will expand to the outside world in the second half of the year. Employees can be recruited locally, but the management of each store needs to be dispatched by Xiangjiang. Now some of these newly added people will be trained.

Moreover, some high-level executives even need manpower for the second possible action. They suggested that the current loss due to the [-]% discount is not too large, so Wellcome can persist. They proposed to implement a [-]% discount to completely give Wellcome Supermarket to defeat.

After thinking for a while, Li Guangyu said: "As for the increase in manpower, you recruit according to the situation, and pay attention to the situation at Wellcome. Once HSBC and Standard Chartered are out, I will discuss with Li Ka-shing, Zheng Yutong and others, and with Wellcome. Let’s fight a price war and see if they dare to follow.”

The top management of Hengyu Supermarket is full of confidence. They have the supply of profits from both Taiwan and Japan. They dare to do even [-]% off sales, but Li Guangyu's consent is needed for this.

Li Xuelan said: "Sheng Li, we will pay attention to the changes in Wellcome, and we will try to end the battle with Wellcome within three months. If this drags on, it will be very detrimental to Hengyu Supermarket Group and Watsons. It is better to finish the battle , completely squeezed Wellcome out of the Xiangjiang retail market.”

Before that, Li Guangyu wanted to drag Jardine over Wellcome, so that they would lose more financial resources on it.If Wellcome withdraws early, the properties of their Wellcome Supermarket can be transferred out, which is not what Li Guangyu wants to see.

As long as it is delayed until September, when the stock market and the property market plummet, Jardine will lose a lot, and the stores of their Wellcome Supermarket will not be able to sell them if they want to sell them.If Wellcome withdraws at this time, they will be able to recover a lot of funds to replenish blood for Jardine.

However, Li Guangyu is not too worried about this situation now. In the past few months, not only Guo Qingya has been dealing with Wheelock's properties, but Sun Hung Kai, Cheung Kong, Hutchison Whampoa, and Shau Kee Group have also been dealing with some of them that are not critical. properties, resulting in the market has become saturated.

As for Wellcome Supermarket, even if it wants to close its business, it will not be completed in a day or two, and it will be even more difficult to transfer the store. With so many stores and such a large area, it is not something ordinary people can take care of.

Li Guangyu said: "Xuelan, after you return to Hutchison Whampoa, first communicate with Mr. Li Ka-shing about this matter. This time, let's take a look at the situation of Wellcome. If the status quo is maintained there, we will implement a price war again. , completely squeezed Wellcome Supermarket out of the Xiangjiang market.”

"Alright Mr. Li, I will communicate with Mr. Li Ka-shing about this afternoon. I believe he will support this action." Li Xuelan replied.

Li Guangyu then asked the group's senior management to take the following countermeasures, especially in terms of personnel and logistics, to ensure that the supermarket can maintain normal operations.

……

(End of this chapter)