Chapter 69

"Director Fu, I think this is a good approach. Let's both take a step back. Your city's real estate development company can take 75%, and our Feihong Real Estate can take 25%. Both parties can establish a new joint-stock company in Hong Kong with this equity ratio. All housing contracts will be signed with the new company, and all proceeds from the sale of houses will be transferred to the new company's account for joint supervision. As for the specific development of the project, the new company will fully entrust it to our Feihong Real Estate!"

After more than an hour of intense debate, Li Xuan saw that the differences between the two sides were not significant, so he spoke up.

"Alright, you Hong Kong compatriots are ultimately here to make money in the special zone. We can be generous. 25% it is. We hope that after you return to Hong Kong, you can promote more Hong Kong businessmen to invest and develop in the special zone!" After a brief consultation with Cai Yongmin, Fu Yaonan finally agreed, and the matter was settled.

In fact, at this point, both sides had not even discussed the final location and scale of the new cooperative project. The officials from the Planning Bureau, who had been watching the show from the side, finally got their chance to speak.

Liu Yuanfei quickly moved the teacups on the table to the ground and took the already prepared Shenzhen City planning map from the head of the Design Department, Shen Chao, laying it flat on the table.

Liu Yuanfei, in his early forties, was a university graduate before the Cultural Revolution, a technical engineer by training, with strong professional skills and clear thinking. He was originally a key young and middle-aged cadre cultivated by the Guangzhou City Planning Bureau and was assigned to support the construction of the special zone.

Liu Yuanfei and his subordinates, including Shen Chao, spent several months traveling to every corner of Shenzhen City. After countless sleepless nights of discussion, they revised the plan multiple times and finally came up with this overall plan for the Shenzhen Special Zone.

A group quickly gathered around the table, and Liu Yuanfei pointed to the southern part of the map and explained to everyone, "Currently, the key development area in Shenzhen City is the Luohu District, with the area around the train station being the most important. This area is adjacent to the Luohu Port, which facilitates trade and daily exchanges between the special zone and Hong Kong."

"This plot of land is quite good, located west of the railway, next to Heping Road, and less than 500 meters from the train station. The plot covers about 10,000 square meters, nearly 15 acres, and is very convenient for development. If your Feihong Company takes it, you can build at least twenty residential buildings!"

After a brief discussion, Lin Yuhao and Zhang Wenzheng nodded in agreement, deciding to go and inspect the site the next day before making a final decision. Li Xuan glanced at the map and realized that the location Liu Yuanfei pointed to would be the Shipping Community and the Customs Dormitory in the future.

According to the information Zhang Wenzheng had previously provided to Li Xuan, the development cost of each square meter of residential area in the Shenzhen Special Zone, including design, construction, advertising, and sales, would not exceed 1,000 Hong Kong dollars. Calculating with six floors per building and four households per floor, at least 500 units could be provided by twenty buildings.

If each unit averaged 45 square meters and was sold at 2,500 Hong Kong dollars per square meter, the actual profit per square meter would be at least 1,500 Hong Kong dollars. Thus, this real estate project could generate a profit of 35 million Hong Kong dollars. Even if Feihong Real Estate only got one-tenth of the profit, it would still be around 8 to 9 million Hong Kong dollars.

Li Xuan, who had made a fortune from developing arcade games, relied on his rebirth advantage. However, in his view, any bold person could succeed with this project.

The moment he estimated the profit, even Li Xuan was somewhat tempted. Real estate was truly a highly profitable industry! But he quickly calmed down. Although the profit in real estate was high, the industry was riddled with underhanded and opaque practices. Feihong Company could easily acquire land and choose good plots now because Shenzhen City was still largely ignored.

Once the special zone started booming in a few years, it would be much harder to find such bargains. Thinking about the many corruption cases exposed decades later, many of which were intertwined with the real estate industry, Li Xuan felt that it was better to focus on electronics.

"Is this area planned to be an industrial zone?" Li Xuan examined the map and pointed to an area marked as Shangbu Industrial Zone. He remembered that this would be the famous Huqiangbei Electronics Market in the future, a world-renowned base for electronics.

"Yes, this will be the future electronics industrial zone of Shenzhen!" Liu Yuanfei nodded and said, "After the New Year, the construction of the Shangbu Industrial Zone will officially begin. Several electronics companies, including the Shenzhen Electronics Assembly Factory, Shenzhen Huqiang Electronics Industrial Company, and Jinghua Electronics Factory, have already decided to build their factories here! Setting up factories in the special zone is much cheaper in terms of land and labor costs compared to Hong Kong. Mr. Li, is your Oriental Electronics interested? If you are willing to set up a factory in the special zone, you can choose any location in the Shangbu Industrial Zone!"

Li Xuan gently shook his head, "Director Liu, my Oriental Electronics is already very profitable. Reducing costs is not my most pressing concern. On the contrary, logistics, transportation, warehousing, and the supply of supporting components are what Oriental Electronics values most in the near future! In these aspects, Shenzhen City lags far behind Hong Kong. To be honest, even if I choose to set up a factory in the Shenzhen Special Zone, I would prioritize the more developed Shekou Industrial Zone."

The northward shift of Hong Kong's industries is an inevitable trend, but compared to Hong Kong, Shenzhen City currently has few advantages. Although land prices are low, the infrastructure is underdeveloped. Although labor costs are low, there are no skilled workers. On the contrary, the backward logistics and transportation, cumbersome customs procedures, and uncertain policy prospects put Shenzhen at a disadvantage in competing with Hong Kong.

No wonder the Shekou Industrial Zone, established by Yuan Geng last year, has not had much success in attracting investors. Most Hong Kong businessmen come and go, only touring Shekou and ultimately returning to Hong Kong to set up their factories.

After reaching a preliminary cooperation agreement with the Shenzhen Housing Bureau, Li Xuan and Lin Yuhao hurried back to Hong Kong, while Zhang Wenzheng stayed behind to continue coordinating.

"Talk to your father tonight and ask him to support you with a few capable talents to help you set up the company's framework. We need to quickly develop the plan for the new project and aim to launch it for sale at the same time as Donghu Liyuan. Oh, and you need to come up with a nice name for the neighborhood. This is our Feihong Real Estate's first development project!" Li Xuan said to Lin Yuhao, who was sitting next to him on the train.

"I can do it myself; I don't want to ask him for help," Lin Yuhao said hesitantly, somewhat unwillingly.

"Listen, Haozi, don't be foolish at a critical moment. It's only natural for a son to seek help from his father! Your elder brother, Lin Yuli, wouldn't have climbed to the top decision-making level of the Lin Group so quickly if he weren't the son of Lin Guotai, no matter how capable he is!

I told you to be independent from the Lin family, not to envy their wealth. You have a nominal mother and two older brothers and a sister. No matter how much wealth your father has, according to the tradition of the eldest son inheriting the family, the share you would get is very limited. It would be better to take a high stance and give it up, which would earn you a good reputation!

But this doesn't mean you should ignore the Lin Group's backing. You are Lin Guotai's biological child, and his blood flows through your veins. As a father, he has the responsibility to give you a push when you start. Even if your brothers and sisters try to sabotage you, he will definitely intervene."

Li Xuan patted his roommate's shoulder. If Feihong Real Estate couldn't extract some benefits from Lin Guotai, his decision to give Lin Yuhao 40% of the company would be a huge loss.

In business, based solely on Lin Yuhao's current status as a university student, giving him a monthly salary of 2,000 yuan was already the maximum. Let alone being the company manager, he could only be a junior assistant.