Chapter 2213: Merger

Hearing the other party's name, Zhao Shucheng couldn't help but be stunned. This name might not be familiar to ordinary people, but Zhao Shucheng had a deep impression of it.

I still remember that when Zhao Shucheng was a junior high school student, he watched a TV series called "Merger" and felt very sympathetic towards the male protagonist in it.

Fu Chun is the boss of Huachang Company, a state-owned enterprise in Hai City. The company was targeted by the foreign company Will Company, which was determined to merge Huachang Company. Fu Chun applied for a loan from the bank, but the bank reported that the director of the credit department had accepted bribes, and the loan was disrupted.

When constructing a building, he was asked to build it directly as a landmark building. After the foundation was built, he needed to replan the site, but the city did not provide financial support. It could even be said that Huachang just looked at itself to find ways to raise funds. He wanted to get out of trouble and divest assets, but was accused by the Will Group of disrupting the economic order. When he engaged in debt-to-equity swaps, Will Company had already obtained business intelligence and directly took the opportunity to acquire all debts, and failed to save himself again. In the reform of state-owned enterprises and the separation of government and enterprises, his old classmates asked him to proceed from the overall situation and act in accordance with economic laws. He went back to his hometown to raise funds and tried to attract investment to save himself, but was also reported by Will Company. He tried to gamble, but was photographed. In the end, the huge Huachang Group was acquired for zero yuan, while the other party was able to go public and obtain 300 million US dollars in funds, at the cost of only tens of millions of debts.

Honestly speaking, when Zhao Shucheng first saw this TV series, he felt very aggrieved for Fu Chun. The company was clearly not at the end of its rope, but everyone was forcing it to go the route of merger.

In fact, this was also the situation faced by many state-owned enterprises in that era. The enterprises were obviously developing well and could continue to develop with a little help, but they had to accept mergers or joint ventures and eventually disappeared from the public eye.

It’s just that Zhao Shucheng didn’t expect to meet the other party here, but Zhao Shucheng soon realized that the sea city where Fu Chun was might be Beihai.

  This scared Zhao Shucheng a lot. You know, Haishi will face a real estate depression in the future. Many real estate companies have left a lot of messes and unfinished buildings in Haishi due to funding problems or other problems. Many companies are also facing funding problems. Will Xiao Lei's family face such problems when building a building here?

After a brief chat with Fu Chun, Zhao Shucheng learned that Haishi was booming, the real estate industry was in its infancy, and many real estate companies were entering Haishi one after another.

Zhao Shucheng felt relieved. As long as it wasn't the last moment of the game, everything was still in time.

So after borrowing the gasoline, he quickly drove to the gas station not far ahead. After filling up the gas, he headed straight to the construction site where Shi Hongwei and his team were.

When we arrived at Haishi, we could see buildings being built everywhere, including residential buildings and office buildings. There were more than a dozen construction sites that Zhao Shucheng saw, not to mention the ones that Zhao Shucheng didn't see.

In fact, having many construction sites is not a bad thing, but Zhao Shucheng is very clear that having many construction sites does not mean anything. It also depends on the city’s own ability to absorb them.

After all, if there is only a house but no one living in it, and you cannot sell it, the house will have no value and will eventually be abandoned.

So after meeting up with Shi Hongwei and the others, Zhao Shucheng did not rush to accuse Shi Hongwei of anything. He just asked him to count the number of land auctions and projects in Hai City in the past two years, as well as the local population and the number of migrant workers in Hai City.

Shi Hongwei seemed to know what Zhao Shucheng was worried about, and said with a smile: "Chairman, you don't have to worry. The building we built here is not just for the local people in Hai City. The city leaders have said that they want to attract investment, so like Pengcheng, it is facing Hong Kong, so there is no need to worry about sales at all."

Zhao Shucheng glared at him and said, "You are the only one who knows a lot. Do you think that as long as we target customers in Hong Kong, we won't have to worry about not being able to sell houses? Have you ever thought about the distance from here to Hong Kong, and the time it takes for the other party to travel?"

Shi Hongwei was stunned when he heard this and said, "It should not be far away, right?"

Zhao Shucheng couldn't help but kicked Shi Hongwei angrily and said, "It's not far, it's really not far, after all, it's all Chinese land, but is it convenient to travel? Can't you look at the map yourself?"

Shi Hongwei quickly ran to the office, took out the map and looked at it, and was immediately dumbfounded. This place is separated by a peninsula, and it doesn't look far on the map, but if you really want to come here, the round trip is not something that ordinary people can get used to. After all, this place is different from Pengcheng, where you can just drive back. Here you need to take a boat, and it may even take a day or half a day, which is not convenient at all.

"Then what should we do now?"

Zhao Shucheng frowned and said, "What should I do? Why don't you quickly prepare the information I asked you to prepare and see what happens when the time comes."

"Chairman, what if the house cannot be sold? The land auction will cost tens of millions, not to mention the construction materials and workers' wages. If we lose money, how will we explain it to the villagers?"

"You're scared now, but what were you doing before? When I called you, you seemed very capable, didn't you? Hurry up and get the information. I'll see if there's any way to save you."

Shi Hongwei was really scared this time, and he crawled out of the makeshift shed to find the information Zhao Shucheng wanted.

After Shi Hongwei came back with the information, Zhao Shucheng looked at various newspapers and government documents. When he saw the scenes depicted in them, he suddenly felt overwhelmed.

Although Haishi is one of the first coastal cities to be opened, it is very different from other cities in that there is no train here, so the transportation of materials basically relies on ports and roads.

Of course, thanks to the real estate boom in the past two years, the land and property prices in Hai City have also risen sharply, and even the number of real estate companies has increased from three at the beginning to hundreds now. Real estate prices and economic development do have a great reputation outside, but Zhao Shucheng saw an unusual side from these documents and news.

According to newspapers and documents, the number of properties to be completed in the next two years can already meet the needs of 100 people. If the land auctioned this year is included, it can meet the needs of 2 million people. However, Zhao Shucheng saw that the local population of Hai City was only 200,000, and the floating population was only 500,000. There was not even a strong and stable demand market and strong industry and commerce as a backing, so the real estate supply would definitely exceed the demand in the future.

Zhao Shucheng knew very well that in 1993, due to the Hainan real estate bubble, the scale of bank credit shrank, and those companies that borrowed money to develop real estate would be insolvent, which would definitely cause a chain reaction, and housing prices would only fall, not rise. But Zhao Shucheng knew that it was too late to say anything now, Shi Hongwei had already bought the land and even started construction, so he had to bite the bullet and finish the project. Of course, Zhao Shucheng did not expect to sell all the buildings. Even if they could not be sold, Zhao Shucheng would have to find a solution himself.

In fact, Beihai also has its own advantages, that is, it is a seaport city. If the transportation problem can be solved, there is still a great development prospect in the future. Especially for Xiaoleijia, when the Qinbei Railway is completed, they can take the train directly from Xiaoleijia or Jinzhou, take the Jiaoliu Railway or the Xianggui Railway, and directly transport the products to Beihai Port, and then transport them to all parts of the world.

Most of the products of Xiao Lei's family are actually shipped by sea. After arriving in Shanghai, they need to change to transport ships and go to inland ports. This mode of transportation is not as convenient as rail. However, Shanghai is a transportation hub, and the daily rail transportation is very tight. Therefore, it is not realistic for Xiao Lei's family or steel mills to transport their products and ore by rail. If the transportation problem of Beihai is solved, it can be said that it will give their development new wings and it may be more brilliant.

When Shi Hongwei saw the data listed by Zhao Shucheng and the situations that might need to be considered in the future, he was stunned. He had never thought that there would be such a big problem in the plot of land he saw. If it was not solved well, the village would lose tens of millions, and he could not afford it at all.

After severely criticizing Shi Hongwei, Zhao Shucheng told him to keep the matter to himself and not to tell anyone, and to pretend that he didn't know about it. However, Zhao Shucheng also asked him to investigate the local situation clearly when auctioning plots of land for real estate development in other cities in the future, not only in terms of economy, but also population, real estate holdings, and even industrial and commercial prospects, etc., and to be extremely cautious.

Shi Hongwei asked hesitantly: "Secretary Dongbao, you have been asking us to focus on the real estate industry in Pengcheng. Isn't there a risk of bankruptcy there? You know, their housing prices are already very high, otherwise I would not choose to come here to develop real estate."

Zhao Shucheng pondered and said, "It cannot be said that there is no risk at all, but relatively speaking, the risk is the smallest. From the map, this place is very close to Hong Kong, so the customers they face are not only local residents of Pengcheng, migrant workers, but also people from Hong Kong. You should know that the real estate prices in Hong Kong are extremely high, and many people buy so-called large houses with a floor space of only 100 square meters, and most people only live in houses with a living space of dozens of square meters, which is far inferior to that of Pengcheng. Moreover..."

Zhao Shucheng pointed at Pengcheng on the map and said, "Don't you forget where this is? You've been in Pengcheng for so long, haven't you seen those newly built factories? Since there are factories, there is a demand for labor. Even if all the local population of Pengcheng goes to the factories, it is not enough to meet the labor demand of these factories, so they can only recruit workers from outside. These are all potential customers. Do you still think Pengcheng is the same as Haishi?"

After hearing what Zhao Shucheng said, Shi Hongwei felt that he was still far behind Zhao Shucheng. He thought that he had gained a lot of experience during his time in Pengcheng and could surpass Zhao Shucheng, but he didn't expect to be taught a lesson.

"What about Dongbao? What should we do here now? Should we continue to develop it? Isn't it like pouring money into it even though we know we will lose money?"

Zhao Shucheng glared at him and said, "Shut up and don't talk about losing money in the future. By the way, when you bid for the land, did you require the type of building and its use?"

"It seems not. It only requires office buildings and residential buildings, and there are no detailed regulations for other things."

Zhao Shucheng nodded and said, "If that's the case, then it's easy. While we're just laying the foundation, you and I will go to the government department and request a change in the design. We will launch our own new design and make this a landmark building for the entire city."

"Ah, a landmark building, wouldn't it cost more money? Secretary Dong Bao, is it worth it?"

"You know nothing. I'm saving you. Otherwise, if the villagers knew you had lost tens of millions, do you think you could still return to the village? Can you continue to hold your current position? Besides, if you can't squeeze out the value of this land, do you think you can get your money back? Only by following my approach and making this place a landmark building, or even attracting companies or individuals to move in, can we make this place popular."

Zhao Shucheng asked Shi Hongwei to prepare tools for him. He would start designing the blueprints and make this place into an urban complex so that the people in Hai City would think it was feasible and they could modify the design drawings and successfully complete the real estate development.

Knowing the situation in Hai City well, Zhao Shucheng directly built a shopping, catering, cultural and entertainment business district according to the layout of commercial center, pedestrian street, office building, apartment building and star-rated hotel, so as to improve the style of the place and complete the task of recovering the investment.

In fact, Zhao Shucheng didn't want to use this trump card so early, but facing Shi Hongwei's operational error, Zhao Shucheng could only make the best of it and use this killer weapon in advance, but he didn't know what the effect would be.

After the design drawings came out, Shi Hongwei went to the government department to apply for it and received unanimous approval from the government department, so the construction site started again and construction was carried out according to the design drawings.

Just when Zhao Shucheng finally had some free time, Fu Chun from Huachang came to Xiao Lei's construction company looking for Zhao Shucheng.

Zhao Shucheng was a little surprised to hear the news that the other party was coming. After all, according to his calculations, Huachang Company would be in trouble for some time, and Fu Chun should not worry about funds, so why did he come to him?

"Please come in, Mr. Fu. By the way, you go to the construction site and keep an eye on it. The quality of this project is of vital importance, and there must not be any problems!"

"I know! I'll keep an eye on them and there won't be any problems."

After Fu Chun came in, Zhao Shucheng smiled and said, "Mr. Fu, you are such a busy man, how can you have time to come to my small place?"

"Boss Lei, you're joking. I've heard about it in the city. Your move is not small at all. It caused quite a stir."

Zhao Shucheng was stunned for a moment after hearing this, and said, "How did Mr. Fu know?"

"I also have the city's People's Congress with me, so I heard some news."

After hearing this, Zhao Shucheng suddenly realized that, after all, the cadres of state-owned enterprises these days are not only enterprise managers, but also state cadres.


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