Chapter 342: The Unexpected Returns of the Charity Industry
Woven plastic sacks might not look impressive, and their technological complexity is low, but they're a truly useful invention for improving logistics. They save a vast amount of plant-based packaging materials, reduce transport costs, and even help protect the natural environment indirectly.
Although they didn't sound as glamorous as innovations in electronics, Changxing Industrial had always taken the route of small-scale product innovation. And since they controlled the raw materials for this product, the woven sack was a perfect addition to their line.
While they weren't quite single-use like traditional plastic bags, woven sacks still wore out or broke after repeated use, especially when used to carry heavy materials. So over time, customers would need to replace them, creating a massive and continuous market.
Wei Zetao laughed and said, "Alright, I've already placed an order with Japan for ten production lines, and with Germany for three flat-yarn extrusion lines. Those were all they could provide, otherwise I would've ordered even more."
The uniqueness of Changxing Industrial's product line lay in this: when a new idea emerged from within the company, there was almost 100% internal consensus that it would become a hit.
Like the early days of Post-it notes, adhesive hooks, rolling suitcases, and now plastic bags and woven sacks—when the prototypes first came out, everyone could see they were destined to sell.
Of course, most of these ideas came directly from the boss. While in-house designs by the team sold decently, they were never in the same league.
"That's normal," Yang Wendong nodded. "We need to focus on internal talent development too. Even a simple product, when produced at scale, comes with its own set of stability and quality control issues."
Anyone who has worked in manufacturing knows that even the simplest products become a challenge when you're producing them in the tens or hundreds of thousands. Ensuring consistency at that scale is a serious task.
"Understood," Wei Zetao nodded. "Our current capacity is about 5,000 woven sacks per day. I plan to prioritize supplying markets and rice distribution programs—that way, exposure will be at its highest."
"Good. Handle the details as you see fit," Yang Wendong said. "Just ramp up production as fast as possible. We'll soon be exporting."
By now, Changxing Industrial already had a basic global distribution network. While it wasn't yet perfect, the company had dealers in several countries—enough to support international expansion.
Time passed quickly. May arrived, and with it, the start of Hong Kong's sweltering summer.
May 2 – North Point, Watsons Beverage Factory
Yang Wendong visited the Watsons factory in North Point.
Zhou Haoran greeted him at the entrance. "Yang Sheng, based on the last two weeks of data, our canned drinks are ready to enter the market."
"What's the defect rate?" Yang Wendong asked.
Zhou Haoran replied, "Right now, we're seeing about 1.4 defective cans per 100,000—usually from post-production ruptures causing leaks."
"Fourteen per million? Not bad." Yang Wendong nodded. "What about the contents themselves—any spoiled drinks?"
Leaks were easy to detect. But spoilage, on the other hand, was much harder to catch. And a rotten drink could be disastrous.
"We've sampled thousands of cans and haven't found any issues," Zhou Haoran said. "That's mainly because our tea drinks are pasteurized at high temperatures. Unlike juice or other beverages, which require room-temperature sterilization, our process is much simpler and more reliable."
"Right. Heat sterilization is still the cheapest and most effective method," Yang Wendong said with a smile.
Juices and dairy products couldn't be boiled—that was a global technical limitation. Even in modern times, that issue remained unsolved. That's why companies like Dairy Farm existed—to deliver fresh milk daily.
This technical bottleneck wasn't resolved until European giant Tetra Pak introduced various advanced sterilization techniques, which finally allowed juice and milk to be preserved cheaply and safely—revolutionizing the dairy and juice markets.
Yang Wendong knew all about Tetra Pak because, in his past life, the company was among the first to be investigated under China's anti-monopoly laws. The reason? They practically held a monopoly over global dairy packaging. Giants like Yili and Mengniu had to hand over a huge chunk of their profits to Tetra Pak.
Zhou Haoran continued, "We'll need long-term testing with more manpower to truly verify the spoilage rate. But for now, no major problems have been found. Once the drinks hit the market and we build up volume, we'll collect broader feedback."
"Mm." Yang Wendong nodded. "But don't let your guard down. In Hong Kong, even if someone drinks something spoiled, they might not complain. But once we export these products, any issue could become a serious legal matter—especially in Western markets."
"Understood. We'll keep monitoring," Zhou Haoran said.
"Good. Let's go take a look at the production line."
"Right this way." Zhou Haoran led the group to the workshop.
After putting on safety gear, they toured the factory, observing the automated lines and sampling some cold drinks at the end of the line. The flavor was great, especially when chilled.
Afterwards, Yang Wendong said, "Zhou Sheng, coordinate with Carrefour. All our drinks should be displayed in refrigerators—it'll be far more appealing to customers."
"That's already part of the plan," Zhou Haoran said.
"Alright, let's wait for the market's response once the drinks launch," Yang Wendong said.
As a manufacturer, they had done all they could: cutting-edge packaging, flavor testing, partial self-distribution. The rest would depend on the consumers.
Yang Wendong was optimistic. Hongkongers loved herbal tea. Many people started their day by drinking some outside. A ready-to-drink herbal tea would be extremely convenient.
Not to mention, the ongoing drought and extreme heat meant cold, refreshing drinks were in high demand. Even Watsons' ginger soda—famous for its odd taste—was now selling well.
As they exited through another gate of the factory, Yang Wendong spotted workers loading crates of bottled water into trucks. Others were unloading empty bottles.
"The bottled water business is booming," Yang Wendong said with a smile.
Zhou Haoran replied, "Yes, the heat and drought have made things worse than during Lunar New Year. Some places only get water every two days—if at all. Even real estate scalpers are lining up at public water stations just to sell the slots—or the water itself."
"That's absurd. I've heard people are even fighting to the death over it," Yang Wendong said.
In his past life, growing up in the mainland in the 1980s, Yang Wendong had lived through poverty. Food was scarce, sure, but there was always water. The worst-case scenario was lugging buckets from a nearby river.
Now, as someone who had traveled back in time, he was watching a modern city buckle under water scarcity. It was nerve-wracking. Despite pouring resources into relief efforts, even the Hong Kong government could only ensure that people didn't die of thirst. But water was needed for everything—from cooking to cleaning.
Zhou Haoran nodded. "Demand has exploded. We're running the purification plant around the clock. We don't even need to worry about distribution—buyers line up overnight."
"That's good. Let the wealthy buy their own. That way, they won't compete with the general public," Yang Wendong said.
"I agree. Personally, I'd rather pay more than stand in line. If that means going through a scalper, so be it," Zhou Haoran said.
"How much are we selling per month now?" Yang Wendong asked.
Zhou Haoran leaned in and said quietly, "Rough estimate for this month: HKD 2 million in sales. Net profit? About HKD 1.5 million."
"So much? That's higher than Changxing Real Estate," Yang Wendong said, surprised. Then again, it wasn't hard to believe.
Zhou Haoran said, "The profit margin is insane. I'm not even marking up prices much. But our resellers? They're charging through the roof.
Given that demand is far higher than supply, I see no reason to let middlemen reap all the rewards while we earn peanuts. We hold the most valuable resource right now—pure water. Of course we should benefit.
Besides, Yang Sheng, you've spent a fortune bringing water to the shantytowns and helping the poor. Making it back from the rich is only fair."
"That's a fair point." Yang Wendong chuckled. "I never thought that my charitable water transport initiative would turn out to be a huge moneymaker thanks to your side."
Even without considering the long-term profits from repurposed ships for Middle East oil transport, the water delivery effort wasn't highly profitable. The government subsidized it, yes, but Yang Wendong still had to purchase and donate a huge volume of water for free to shantytowns and impoverished communities.
To do that, he had to control the water source. Once he had that, he could supply Watsons—and turn a profit on the other end.
Back when he started this project, he hadn't expected it to pay off. But now, under the branding of "pure water," he had bypassed the city's water utility regulations and entered a legal grey area.
In a drought-stricken society, the profits from purified water now exceeded what he had invested in charity.
Zhou Haoran grinned. "Yang Sheng, you were originally just trying to do some good. Now, through a mix of timing and opportunity, the heavens have rewarded your kindness with profit."
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