1977: The beginning of the blind date with the daughter of the king

Chapter 601 Return to the mainland to invest openly!
"Jointly develop the Huangpu Dockyard?"

Inside the Li family's mansion, Zhuang Yueming looked at Li Jiacheng in surprise and couldn't help but raise her voice a little.

Li Jiacheng nodded calmly: "Yes, what China Resources means is that they want to be familiar with some of the real estate commercialization experience, but I think this is just an excuse."

"There is a master behind China Resources, who may have helped them find the Huangpu Dockyard location."

Li Jiacheng nodded calmly.

Zhuang Yueming frowned at this moment.

"I think it's a bit uneconomical. Even if we give up ParknShop, we can't give up the Whampoa Dockyard."

"We all know the value of the Huangpu Dockyard. If it is well managed, it will generate billions of profits, and ten ParknShop supermarkets will also be built there."

"I don't think I can agree to that!"

She knew the difference in value between a retail mall and real estate without even having to do the math. The difference in value was huge.

Unexpectedly, Li Jiacheng shook his head gently.

"No, I'm going to agree to it."

“Of course, the profits of ParknShop supermarkets are not as good as those of Whampoa Dockyard, but we should not focus on the economic benefits, but the context behind it.”

"The problem now is that there is no force in Hong Kong that can suppress Bao Zeyang. This also means that from the perspective of business warfare, he will always be in a strategic offensive position, and we can only passively defend."

"To be frank, we couldn't even defend ourselves. We could only passively wait for him to show mercy and let us go. But I don't think this little Baosheng is such a charitable person."

"After all, Hong Kong Island is so small, and there are only so many high-quality industries. Sooner or later, there will be collisions in other directions. Should we avoid them everywhere in the future?"

"So, we must find a force that can suppress Bao Zeyang, and at the moment, the north seems to be the most suitable."

"I now understand a little bit what my master meant by giving up money to ward off disasters."

"He didn't mean to eliminate the disaster at hand, but to completely suppress the disaster of Xiao Baosheng."

"If we can use the Huangpu Dockyard project to get Bao Zeyang to give in, I think this deal is very cost-effective, because it means that we will have the capital to truly compete with him in many industries in the future."

"So I am considering agreeing to Huangpu Dockyard."

"What's more, China Resources' attitude is not tough. They just want to join the game. The overall control is still in our hands, so in the end it's nothing more than sharing some of the profits. I think it's okay."

After hearing Li Jiacheng's analysis, Zhuang Yueming sighed silently in her heart.

My husband seemed to have been mentally disturbed by the little girl.

However, what he said is not without reason. Judging from the current situation in Hong Kong Island, no one can stop this young man from getting the property he wants, no matter what gods or Buddhas stand in his way.

Neither British nor Chinese capital could restrict his steps. Even HSBC never interfered with his business.

From this point of view, the other party already has some meaning of "Supreme Master of Martial Arts". At this time, it is indeed necessary to find a force that can suppress him.

Even if you don't use it, you should still have this trump card.

"Jingle Bell!"

The phone at home rang at this time. Li Changhe walked to the phone and picked up it.

"Hey?"

"Okay, I'll be there right away."

Zhu Lin, who was sitting on the sofa reading a newspaper, saw Li Changhe put down the phone and asked curiously.

"Where are you going?"

"I'm going to go to Mr. Liao's house."

Li Changhe said something to Zhu Lin with a smile, then took the car keys, got up and walked out.

Soon, he arrived at Mr. Liao's home.

At this moment, in addition to Mr. Liao, Director Lu is also at home.

Seeing this scene, Li Changhe had some vague guesses in his mind.

"Coming, Comrade Changhe."

"Sit down, come, eat some melon seeds first, the meal will be ready soon."

Mr. Liao asked Li Changhe to sit down, and then pushed the peanuts and melon seeds in front of the table in front of Li Changhe.

"Comrade Changhe, actually I asked you to come here this time because of the news coming back from Hong Kong Island."

"Li Jiacheng agreed to develop the Huangpu Dockyard."

Director Lu said cheerfully.

The people from China Resources have already inspected the land of Huangpu Dock. The location is very good. Once it is developed into a residential area, it will bring in at least 10 billion in profits.

This not only allows them to complete their foreign exchange earning mission, but also allows them to gain a deeper understanding of some of the operating rules of commercial real estate in Hong Kong Island.

This is indeed a great thing for China Resources.

"By the way, regarding the pharmaceutical company, I have helped you communicate with the Chinese medicine side. The Chinese medicine group really can't come up with more funds to cooperate with you now, so they can only reluctantly agree to your cooperation with Jingcheng Pharmaceutical."

"As for Beijing, you can just send someone to talk to Xiao Liang. I've already told Xiao Liang about this."

Mr. Liao said to Li Changhe with a smile.

After listening to this, Li Changhe smiled and said, "Commander, this is a perfect explanation."

"You came out to help Li Jiacheng and asked me to stop targeting Hutchison Whampoa, and in return, you opened up the pharmaceutical industry and tourist hotels to me."

"This way, my businesses can invest in the mainland openly."

"Yes, that's what we thought too."

Director Lu said with a smile.

It is impossible for Li Changhe's industry to cooperate with the mainland quietly all the time. That would be too fake, and it doesn't mean that it will not be traced at all.

Now there is an opportunity to put this kind of cooperation openly on the table, which is a perfect excuse.

"Then I'll arrange this matter when I return to Hong Kong Island in the next few days."

Afterwards, Li Changhe returned to Hong Kong Island quietly.

That day, he came to his office and called Wei Li.

"Boss, are you saying that we should call a truce against Hutchison Whampoa now?"

Wei Li was a little surprised when he heard Li Changhe's order.

Now they are suppressing Hutchison Whampoa, and ParknShop Supermarket is almost squeezed out of the two core areas of Kowloon and Hong Kong Island by Wei Li. At this time, Li Changhe wants to call a truce?

"Wei Li, to be honest, Li Jiacheng should have found Beijing, and the people in Beijing contacted me. They hope that I can make a truce with Li Jiacheng."

"I have no choice but to give the capital this favor. As far as I know, the Governor's Office is in contact with the capital to discuss the ownership of Hong Kong Island."

"The Americans' attitude is ambiguous, and it will be difficult for Britain to get their support this time. So I have to consider the opinions of the capital." At this moment, Li Changhe spoke to Wei Li "heart to heart".

Wei Li couldn't help but frown when he heard this.

"Damn politics again!"

"But, Weli, they also gave us compensation."

"First, I want an opportunity for pharmaceutical cooperation. I will cooperate with Beijing to establish a pharmaceutical company. At that time, I will introduce some of the technology of the American pharmaceutical group from the United States, and then expand our business in Asia."

"You know, even in the most closed countries, medicine is an unavoidable market, and the population there means that even if the price of medicine is low, there is still enough profit for us."

“Secondly, they gave us investment quotas for two hotels.”

"We can invest in building a high-end hotel in Beijing and Shanghai respectively. At that time, they will own 51% of the shares and we will own 49%. The cooperation period will be ten years. After ten years, we will sell the hotel shares to them for one dollar."

"This"

"Boss, can we make money from this?"

Wei Li asked hesitantly when he heard this condition.

"You can make money, and in my opinion, you can make a lot of money."

"Wei Li, the first thing you need to understand is that in the mainland, they have designated tourist cities and tourist hotels."

"That is to say, overseas tourists going to the mainland can only go to certain cities and certain hotels."

"According to the data they showed me, the number of overseas tourists entering the mainland last year was about 110 million, and these people could only visit a limited number of cities such as Beijing, Shanghai, and Chang'an."

"In Beijing, there are only six hotels that are qualified to provide accommodation for these overseas tourists, with a total of less than 5,000 accommodation rooms."

"And this is just the number of tourists. In addition, there are many overseas companies there, and their executives' accommodation is often dependent on these high-end hotels."

"That means they have a huge shortage of accommodation rooms."

"Moreover, these hotels are basically fully booked every day, with no vacant rooms."

"If we invest in a high-end hotel with 100 rooms, and the average daily consumption per room is $, that's $. In a year, that's $ million in turnover."

"And their losses will be reduced. According to the salary standards provided by the mainland, their staff wages are less than 50 US dollars per person per month. Even if they have a staff size of people, the labor cost is only US dollars per month."

"Of course, my calculation model is unscientific. This is just an example I gave."

"But there is no doubt that according to their estimates, taking the state-owned restaurants they operate as an example, they can recover their costs in about five years, and the remaining five years will be a profit period."

"In fact, in my opinion, we will probably recover our investment in less than five years, and the rest will be profit."

"More than that, there's one more thing."

"That is, now everyone is uncertain whether their reforms can be maintained or will change midway. Therefore, the ten-year cooperation period is a guarantee for both parties."

"To put it another way, if ten years from now, they not only maintain the current situation, but even further open up some of their domestic industries, then we can not only enter the mainland market on a large scale, but also cultivate a large number of employees suitable for working there through these two cooperative hotels."

“I think from this point of view, this is an opportunity!”

"What do you think?"

Li Changhe told Wei Li his analysis, and Wei Li sat there thinking.

In fact, there were many errors in the examples Li Changhe gave him. For example, in high-end hotels, the cost of a luxury suite is often several times or even dozens of times that of an ordinary suite.

Therefore, the hotel’s profit cannot be calculated simply based on the number of rooms.

But there is no doubt that he understood what Li Changhe meant. With the increasing number of tourists and senior executives of foreign-funded enterprises, the profitability of such high-end hotels is guaranteed.

Generally speaking, if we ignore the construction costs and only calculate the annual operating costs of a completed luxury hotel, the profit margin can be between 60% and 70%.

And if the labor cost is really reduced to 50 US dollars a month as the other party said, Wei Li feels that the profit margin of a hotel can reach more than %.

Based on an annual turnover of 20 million U.S. dollars and a profit of 16 million U.S. dollars, they account for 49% and can get 7.84 million U.S. dollars.

Theoretically, the investment can be recovered in about three years.

Of course, this is only in theory. In actual operation, there will definitely be increased losses, but it should not be a problem to recover the investment in about four years.

Therefore, the remaining six years were indeed all profits.

And as Li Changhe said, there is also a long-term warning here. From this perspective, it is indeed worth investing.

"Boss, do we invest directly in the name of Mandarin Hotel?"

After Wei Li finished estimating in his mind, he asked seriously.

"Yes, we can use the name of Mandarin Hotel. I even think we can use the Mandarin Hotel's signboard when the time comes."

"Although we will sell our equity to them officially after 10 years, I think that in the next 10 years, we can create a high-end reputation in their tourism market with our own brand."

"In fact, I think they will open up further in the future, and then we can save time on expanding our reputation in the mainland."

"On the other hand, if their system changes one day, they will just change the name of the hotel, and we won't suffer too much loss."

"By the way, we need to hurry up on this matter."

"My uncle has reached an agreement with them to donate 20 million US dollars to build a hotel in Beijing."

"The donation ceremony will probably be held in July. I think we can take this opportunity to go there and conduct an inspection. If there is an opportunity, I may make more investments."

At this time, Li Changhe gave Wei Li another instruction.

After listening to this, Wei Li nodded.

"I see. I will contact the Mandarin Hotel right away and ask them to form a team and prepare to go north with you."

"Boss, how much do you estimate the investment amount for the two hotels? We need to check the financial situation of the Mandarin Hotel."

Although these are all companies owned by Jardine Matheson, each company has its own accounts and investments are also based on each company's own accounts.

If the Mandarin Hotel is short of funds, then the Landmark will need to prepare in advance.

That's why Wei Li had to ask first.

"Twenty million US dollars per company, this is their standard. Of course, because the two parties have different shareholdings, they each divide the investment amount, so our investment is about twenty million US dollars. Of course, this is an approximate amount."

"We'll discuss the specific situation later. You should form a team first."

We still have to go through the overt negotiations, and then we can talk about the specific division.

Seeing this, Wei Li nodded slightly.

It was obvious that his boss had already reached preliminary agreement with them, so he could only execute it.

After Wei Li left, Li Changhe called Catherine in again and gave her the same instructions.

It is impossible for Wei Li to arrange the entire team going to the mainland this time. He also has to bring some of his own people.

After giving these instructions, Li Changhe sat there and continued thinking.

This is his first time returning to the mainland "openly", so he must do everything carefully!
(End of this chapter)