Having basically achieved his intended goals at the exchange, Lin Baicheng didn't linger any longer.
Back at his company, he instructed Cheng Yufeng to execute the prepared plan.
Without delay, Cheng Yufeng contacted attorney Chen Gao, and the two of them headed straight to Cangjiang Industries.
Upon arrival, Cheng Yufeng went to the reception desk and identified himself as a representative of the company's major shareholder, requesting an immediate meeting with Li Jiasheng. The receptionist, uncertain of the situation but unwilling to take chances, made a call upstairs. Soon after, Cheng Yufeng and Chen Gao were led into Li Jiasheng's office.
Inside, Li Jiasheng was not alone—two other men were present. He made no effort to dismiss them.
Unfazed, Cheng Yufeng and Chen Gao sat down. Cheng spoke first, calm and direct:
"Mr. Li, my name is Cheng Yufeng, assistant to Mr. Lin Baicheng. This is Attorney Chen Gao. We're here today on Mr. Lin's behalf."
Li nodded slightly, already guessing their purpose, but he asked anyway:
"And what matter brings you gentlemen here today?"
Cheng Yufeng pulled a document from his briefcase.
"Mr. Li, this is a copy of the certification showing that Mr. Lin currently holds 5% of Cangjiang Industries' shares. Please take a look."
Attorney Chen added politely,
"You may have your own lawyer verify it if you wish."
Li waved a hand dismissively.
"That won't be necessary. I can tell at a glance."
He took the document and scanned it briefly. Lin's shareholding—well above 10%—was no secret. There was no reason to suspect the document was forged.
As Li read, Cheng continued,
"Mr. Li, since Mr. Lin now holds over 5% of Cangjiang Industries' shares, he has the right to request a shareholders' meeting and to nominate one person to join the board of directors."
Li set the document down and looked up coldly.
"Assistant Cheng, you should know I control more than 40% of this company's shares. I hold the majority in the shareholders' meeting. I can easily reject any board nomination Mr. Lin makes."
Cheng met his gaze evenly.
"Mr. Li, you also know that such authority only applies when a shareholder owns no more than 5% of the company. But if a shareholder holds 20%, he's entitled to appoint a representative to the board to safeguard his interests. Even if you control the meeting, you can't refuse without giving Mr. Lin grounds to suspect his interests are being infringed upon."
The room tensed. Cheng's tone was polite but sharp—a direct challenge.
In any company, no matter how dominant a majority shareholder is, the interests of other major shareholders must still be respected. Unless it's a private enterprise owned outright, even 51% control doesn't justify pushing others aside. And if provoked, minority shareholders can still create plenty of trouble.
Of course, Li knew he had options too. A controlling shareholder could always issue new shares to dilute a rival's stake—if he had the cash. Without it, he could simply block new capital proposals and protect his own position.
Li frowned.
"So you're saying Lin already owns 20%?"
The number made him uneasy. If Lin had accumulated that much so quickly, it didn't yet threaten control—but it made Lin an undeniable power inside the company. And if this young investor decided to fight him on every issue, Cangjiang's development could easily stall.
"Yes," Cheng replied smoothly.
The truth was that Lin's holdings were just under 20%, but close enough that Cheng didn't hesitate to confirm.
Li tapped the paper.
"If he truly holds 20%, why only report 5%?"
Cheng smiled faintly.
"Mr. Li, I think you already know what Mr. Lin wants."
Li's expression hardened.
"Then you can tell Mr. Lin this—his offer is too low. If he wants my shares in Wharf Holdings, he can forget it unless he offers at least 25 Hong Kong dollars per share. Below that, there's nothing to talk about."
He spoke decisively. British or Chinese capital politics didn't matter—his own profits came first. He'd rather deal with future complications than sell cheaply.
Cheng's voice cooled.
"Mr. Li, your asking price is far too high. Wharf is trading at only 12 dollars a share right now."
Li waved him off.
"My decision stands. I'll be calling a shareholders' meeting in the coming days. If that's all, I have work to do."
The dismissal was clear.
Cheng stood, unfazed.
"Very well. I only hope Mr. Li won't keep Mr. Lin waiting too long."
With that, he and Chen Gao left.
Once they were gone, Li turned to the two men in his office.
"You saw that. Lin Baicheng isn't here for pleasantries—he's trying to take advantage of the situation, to snatch Wharf shares from me at a bargain."
One of the men nodded.
"Then the heavy buying we saw this morning—it must have been Lin."
The other added,
"If he really holds 20%, it'll make running the company much harder."
Li snorted.
"I've battled through decades in the business world. You think I'm afraid of some upstart? Those 20% are worth over 150 million Hong Kong dollars. No one throws that kind of money around just to prove a point."
He shook his head.
"Even a man worth a billion wouldn't ignore that much money."
The first adviser hesitated.
"But what if Lin's too young, too hot-headed—blinded by his earlier success, and just wants to challenge you out of pride?"
Li frowned. That thought gave him pause. Lin wasn't even twenty yet. Youth meant impulsiveness—and arrogance.
"True… that's something I can't ignore," he murmured. "Seems I won't get my hands on Wharf after all. But if I can't have it, neither will he."
As the owner of Cangjiang Industries, Li couldn't tolerate instability within his company. He'd made up his mind—to sell off his Wharf shares, passing the trouble to someone else, and at the same time find a way to drive Lin out before the young man became a bigger threat.
Once decided, Li wasted no time. He made a call immediately. The shareholders' meeting was just days away—he had to act before it was too late.
Meanwhile, back at Lin's company, Cheng Yufeng returned and reported Li's attitude in full.
Lin wasn't pleased. Twenty-five dollars a share was unacceptable.
"Fine," Lin said coldly. "If he wants to play hardball, then so be it. At the shareholders' meeting, we'll show all our cards—and I'll nominate myself to the board of directors."
If diplomacy failed, force would have to do.