Chapter 36: Taking Over

Over the next two days, the *Bangkok Post* published a high-impact analysis in its supplement under the pseudonym "Independent Observer," titled "The Coconut Milk Industry Crisis Under the Shadow of the Typhoon: A Market Reshuffle is Imminent."

The article was logically rigorous and data-rich, pinpointing the fatal wounds of major southern manufacturers like Golden Elephant: halved production capacity and skyrocketing costs. Every word was like an ice pick, ruthlessly piercing the already fragile nerves of the market.

Even more lethal was the nearly simultaneous republication of the article by Singapore’s *The Straits Times* and Hong Kong’s *Hong Kong Economic Journal* in their financial sections. The attention from international media was like the final spark igniting a fuse.

In an era where information exchange was entirely passive, retail investors had no capacity to discern the truth from external reports. They naturally trusted the news media—newspapers, radio, and television.

Panic began to spread across the Bangkok Stock Exchange.

"Mr. Chen, the sell-off is gaining volume! 1.18 Baht, 1.16 Baht... the retail investors are breaking!"

Xie Jianming’s voice was very low, yet he could not hide a trace of excitement, his eyes fixed on the stock price continuously being erased and updated on the trading board.

Chen Bingwen nodded and gave orders to the two traders, "Keep a close watch on Golden Elephant Food’s stock price. From now on, keep individual orders under 50,000 shares and buy in multiple batches. Make sure to control the holdings of any single account; do not exceed 5%."

At this moment, Chen Bingwen had been in Bangkok for ten days, and the first shot against Golden Elephant Food had officially been fired.

Rumors are the cheapest and sharpest weapon in the capital market. Once a crack is found, they grow and spread wildly. Chen Bingwen’s meticulously crafted, professionally disguised bearish analysis was that very first crack.

Over the next two days, the article was interpreted in various ways by investors, causing numerous retail holders of Golden Elephant Food Industrial Company shares to follow the trend and sell off.

Xie Jianming and Guo Sen utilized over twenty retail accounts, accepting all the panic-selling from Golden Elephant shareholders without hesitation. The shares of Golden Elephant Food controlled by Sugar Heart Capital crept closer and closer to 51%.

...

One week later.

At the headquarters of Golden Elephant Food, the core members of the Songchai family and several senior executives were holding their weekly meeting.

As the meeting neared its end, Chief Financial Officer Basong reported that the company’s stock price had been fluctuating over the past few days.

"Stock price fluctuations?"

Songla, the Chairman of Golden Elephant Food, dismissed it with the arrogance typical of a long-time autocrat. "It’s just retail investors panic-selling due to the typhoon. Keep a close eye on the market, and if necessary, use the family’s reserve funds to support the stock!"

"But, Father," interjected Songla’s eldest son, Songsa, who was in charge of marketing, "the market panic is spreading fast! Those retail investors aren't listening to explanations; they only know how to sell! If the stock price keeps falling like this, it won't just affect our subsequent financing plans; the banks' valuations will also..."

"Banks?" Songla’s eyes widened suddenly. "Didn't we just renew the mortgage agreement with Bangkok Bank? That loan is the key to repairing our southern coconut plantations!"

At the mention of the bank, CFO Basong’s body trembled imperceptibly, and a fine layer of sweat instantly appeared on his forehead. He subconsciously wiped it with a handkerchief, but this subtle movement did not escape the eyes of Songla’s son, Songsa.

"Father," Basong’s voice was dry and strained, "regarding the mortgage loan from Bangkok Bank... there is a new situation I need to report."

All eyes in the conference room focused on him instantly.

"Speak!" Songla’s voice rose sharply, staring at Basong, waiting for him to continue.

"We... our funding gap for repairing the southern coconut plantations is much larger than expected... in order to secure the full loan amount as quickly as possible and ensure that our coconut milk supply isn't completely interrupted..."

Basong swallowed hard. "On top of the original 20% equity mortgage... we added another 10% of the family’s equity as collateral and pledged it to Bangkok Bank."

"What?" Songla stood up abruptly from his chair. "Who gave you the authority? That is the foundation of our family! 10%? Plus the previous 20%, that’s 30% of our equity in the hands of the bank?"

This news exploded in the meeting room like a bombshell. The faces of the family members and executives were filled with shock and disbelief.

"The funding gap for the southern plantations was too large... the bank demanded additional collateral before they would release the funds. I... I thought we could turn it around quickly..."

"You thought?" Songla grabbed the copper ashtray from the table and hurled it violently at Basong!

With a loud "bang," the ashtray left a deep dent in the conference table.

"The foundation of this family has been ruined by your 'thought'!"

"Father!" Songsa, who had been silent, stood up, his expression equally grim. "Now is not the time to assign blame. The stock price is still falling! Someone is buying up our shares on a massive scale! Those anonymous reports, combined with the news that our equity has been heavily mortgaged—if word gets out from Bangkok Bank..."

As if to confirm his words, the conference room door was kicked open.

Songla’s secretary rushed in, stumbling. "Chairman! We just received a notice from the Bangkok Stock Exchange: Golden Elephant Food’s stock has been suspended!"

"What?" Everything went black before Songla’s eyes.

"The exchange issued a notice stating that the stock price is fluctuating abnormally and they suspect manipulation. They are demanding we provide detailed information on the equity changes of our major shareholders and actual controllers immediately. The suspension will last at least three days!"

The secretary explained in a panic.

Three days!

Songla felt the world spinning.

A suspension for investigation was like putting a lid on a boiling pot of oil. The moment that lid was lifted, it would be the moment Golden Elephant would boil over and explode. Three days were enough for the hunter in the shadows to deliver a fatal blow, and enough for Bangkok Bank to smell the danger and take action.

...

Panic instantly permeated the meeting room.

Meanwhile, in an executive suite at the Oriental Hotel in Bangkok, the atmosphere was completely different.

Chen Bingwen sat on the sofa, speaking on the phone with Fang Wenshan, who was currently at the Bangkok Stock Exchange.

Clear and excited, Fang Wenshan’s voice came through the receiver:

"Mr. Chen, it’s done! The exchange has officially suspended trading! Golden Elephant has been dragged into an investigation, and the Songchai family won't be able to move for at least three days! We have swept up all the shares in circulation! Including what we secretly absorbed earlier, Sugar Heart Capital now holds..."

Fang Wenshan’s voice paused, filled with a trace of incredulous excitement.

"Fifty-one point three percent!"

Fifty-one point three!

A controlling figure capable of crushing everything.

Chen Bingwen took a deep breath and said happily, "Good work, Accountant Fang. Immediately issue a formal notice to the Stock Exchange and the Board of Directors of Golden Elephant Food in the name of Sugar Heart Capital: As the new controlling shareholder of Golden Elephant Food, we demand an extraordinary general meeting of shareholders be held in three days, and we will exercise our rights as the major shareholder to take full control of the company’s operations!"

"Understood!" Fang Wenshan’s voice was also filled with excitement. Even though Golden Elephant Food Industrial Company was not large in scale, it was a listed company, and this would greatly enhance Fang Wenshan’s professional credentials.

...

Three days later, in the Golden Elephant Food headquarters conference room.

The atmosphere was tense. At one end of the long conference table sat the members of the Songchai family, led by Songla, and the original Golden Elephant executives.

At the other end, Chen Bingwen sat down calmly, accompanied by Fang Wenshan, Xie Jianming, Guo Sen, two local Thai lawyers, and two translators.

Songla took the initiative, his tone aggressive: "Mr. Chen! Sugar Heart Capital? A clever move! But don't forget, this is Thailand! Golden Elephant is the lifeblood of our Songchai family! You think you can just take it away like this? The Board of Directors will never agree! The shareholders won't allow it!"

Chen Bingwen did not even lift his eyelids; he signaled for his lawyers to push a document to the center of the table.

"Mr. Songla," Fang Wenshan began, his tone very formal, "this is the equity registration confirmation document from the Bangkok Stock Exchange. Sugar Heart Capital currently holds 51.3% of the shares of Golden Elephant Food Industrial Company and is the absolute controlling shareholder in the eyes of the law. According to the Civil and Commercial Code of Thailand and the company’s articles of association, the controlling shareholder has the right to convene a general meeting of shareholders, elect a new board, and decide the company’s operating policy. The purpose of our extraordinary general meeting today is to exercise this right."

Songla slammed the table. "51.3%? Who knows how you got those shares! Did you have a hand in those reports? We are going to apply for an investigation!"

"That is your right," Chen Bingwen finally spoke. "But an investigation is one thing, and procedure is another. Mr. Songla, your primary responsibility and that of the Golden Elephant Board is to cooperate with the controlling shareholder to complete a legal and smooth handover of company management. Any obstruction will be regarded as damage to the company’s interests, and the controlling shareholder reserves the right to pursue legal liability."

His gaze swept across the flickering eyes of the executives behind Songla. "I believe that those of you here who are professional managers know better how to fulfill your duties."

It was a naked threat, yet based on irrefutable legal facts. Songla was choked into a purple-faced silence. Behind him, CFO Basong was drenched in cold sweat.

The meeting proceeded under heavy tension. The Songchai family tried to stall, but every attempt was dismantled by the legal texts and articles of association cited by Chen Bingwen’s professional team.

In the end, crushed by the absolute controlling interest, the extraordinary general meeting of shareholders forcibly passed the resolution.

All members of the original Board of Directors were dismissed.

Five new directors nominated by Sugar Heart Capital were elected to the board, including Chen Bingwen, Fang Wenshan, and three Thai professionals hired by Chen Bingwen.

The new board immediately took over all management rights of the company and began a re-evaluation of the existing management.

Seeing this, Songla left the room in a fury with his clansmen.

The remaining original executives looked at one another, the atmosphere awkward and fearful.

Chen Bingwen did not waste words; he looked directly at the heads of the production, procurement, finance, and sales departments.

"Everyone," Chen Bingwen stood up and looked at them. "The change of ownership at Golden Elephant is a settled fact. I have no intention of pursuing the past. But the company must survive, and it must make money. I need people who are capable and willing to move forward with the new Golden Elephant."

"I will give you two choices: First, stay. Cooperate with the new management to complete the handover. If you pass the evaluation, your compensation will remain the same, and future adjustments will be based on performance. Second, take your severance pay and leave now. Tell me your choice in ten minutes."

There was no long-winded reassurance, no empty promises. Only a straightforward choice and an urgent deadline. This decisive, lightning-fast style made the Thai executives, accustomed to the sluggish pace of a family business, feel stifled, yet they also sensed a sharpness they hadn't experienced before.

Ten minutes later, no one had left.

Production Director Pongchai and Procurement Manager Chawa stepped forward, expressing their willingness to cooperate.

Chen Bingwen nodded. "Very good. Director Pongchai, Manager Chawa, you stay. The rest of you, return to your posts for now. Mr. Fang will arrange the subsequent evaluations."

He turned to Pongchai. "Take me to the production workshop and the coconut plantations. Now."

Over the next few days, Chen Bingwen was like a tireless spinning top. He went deep into the disaster-stricken southern coconut plantations to inspect fallen trees and damaged irrigation systems. In the processing plant in the Rayong Industrial Zone, he checked equipment, raw materials, and the coconut milk production process. He reviewed production logs, financial statements, and sales contracts.

Pongchai and Chawa followed behind him, moving from initial trepidation to secret astonishment. This young Hong Kong boss had a viciously sharp eye and his questions hit the nail on the head. He didn't understand Thai, but through his translator, he always accurately grasped the crux of the matter.

Once Chen Bingwen understood the situation at Golden Elephant Food Industrial Company thoroughly, he convened the first core management meeting since the takeover in the factory office. Fang Wenshan, Pongchai, Chawa, and the newly nominated Financial Director Wirayut were present.

"First, regarding the disaster-stricken southern coconut plantations: screen for salvageable trees, clear the fallen timber, and start the replanting plan immediately. However, in the short term, the primary source of coconut milk raw materials will shift to the northern production areas. Manager Chawa, I need you to sign contracts with at least six coconut farmer cooperatives in Chiang Mai, Phang Nga, and Chumphon that are not under exclusive contracts with large companies within three days, covering 70% of our production capacity for the next three months. The price will be 5% above the pre-disaster market price, and the quality must meet Grade 1 standards. 30% prepayment, 70% on delivery. Any problems?"

Chawa felt the pressure but also felt trusted. He nodded vigorously. "No problem, Mr. Chen! I'll get it done right away!"

"Second, Director Pongchai, the Rayong factory has three production lines. The equipment maintenance is acceptable, but efficiency is low, and the quality control process is non-existent. I need you to increase the daily output of coconut milk to 5 tons within two weeks. Give me a specific plan on how to achieve this by tomorrow afternoon."

Pongchai immediately responded, "Understood! Mr. Chen!"

"Third, Golden Elephant’s existing coconut milk and syrup business will be maintained for now. However, 70% of the Rayong factory’s capacity must be prioritized for stable, full-volume supply to Chen’s Food Limited in Hong Kong! The remaining capacity can continue to supply existing customers, but contracts will be re-evaluated upon expiration. All orders for Chen’s must be scheduled separately, transported via dedicated lines, and the quality must meet the highest internal standards of Chen’s. Mr. Wirayut, please establish a dedicated financial settlement channel from the Golden Elephant factory to Chen’s Food in Hong Kong immediately."

Wirayut nodded steadily. "It is already being processed simultaneously, Mr. Chen."

Going to such lengths to acquire Golden Elephant Food Industrial Company was specifically for Chen’s raw material supply chain, so naturally, Chen’s would be the first priority after the takeover.

"Fourth, Director Pongchai, Manager Chawa, you are responsible for stabilizing the team. The attrition rate for key personnel must be kept under 5%. Technical staff who are willing to stay will have their compensation maintained. Those with outstanding abilities can receive a raise after evaluation. But any passive resistance or secret sabotage of the handover will result in immediate dismissal and legal action to the maximum extent of the contract. Mr. Fang, you are responsible for supervising the execution."

"Received," Fang Wenshan recorded quickly.

"Finally," Chen Bingwen closed his notebook, his gaze sweeping across everyone. "Golden Elephant’s crisis was caused by the Songchai family’s mismanagement and greed. Now, Golden Elephant is the Golden Elephant of Sugar Heart Capital, and it is also everyone’s Golden Elephant. I only require one thing: efficiency! Execution! Win back the lost production, win back the lost customers! If you can do it, Golden Elephant will survive, and everyone will have a future. If you can't, or if anyone pays lip service while doing otherwise..."

He didn't finish the sentence, but his cold gaze made the Thai executives present tremble.

"Dismissed!"

Back at the Oriental Hotel, Chen Bingwen called for Fang Wenshan.

"The 13% of shares held by the Songchai family, plus the 30% of mortgaged equity in the hands of Bangkok Bank, are hidden risks." Chen Bingwen went straight to the point. "Songla won't be satisfied; he might join forces with Bangkok Bank or other factions to pull off some tricks. We must handle this cleanly."

Fang Wenshan thought for a moment and said, "Bangkok Bank is the leader in the Thai banking industry and has immense influence. They hold the equity mortgaged by the Songchai family. Now that Golden Elephant’s stock price has plummeted, the value of the collateral is seriously insufficient. The bank’s primary concern is how to reduce losses and ensure the safety of their credit. If the Songchai family cannot pay back the money, the bank has the right to dispose of those shares."

"That is exactly our opportunity. I plan to meet with the person in charge of the Golden Elephant loan case at Bangkok Bank and strive to convert the equity the Songchai family mortgaged to the bank into shares for the bank itself. In this way, Golden Elephant’s share structure will become 51.3% for Sugar Heart Capital, 30% for Bangkok Bank, and 13% for the Songchai family..."

"You want to use Bangkok Bank, the industry leader, to check and balance the Songchai family?" Fang Wenshan realized.

Chen Bingwen nodded. "If we have Bangkok Bank as the second-largest shareholder, the Songchai family won't dare to pull any tricks!"