Siheyuan: Rebirth of a comfortable life starts with Shazhu

The owner of this plastic flower factory is now the new darling of Hong Kong Island's commercial market.

From a plastic flower factory, it changed its business track and is now about to go public.

But Lou Xiao'e really disliked this person.

One is that this person made his fortune with the help of foreigners, and the other is that he is a bit greedy in business.

Speaking of this, we have to talk about the issue of common area.

The common area on commercial properties was first introduced by Huojia.

Therefore, many people say that his family is the initiator of the bad rule of common area.

But this is totally wrong.

You have to know that before Huo's family came to power, properties in Hong Kong were not sold individually but as a whole building.

A wealthy landlord buys a building and then rents it out to citizens in need.

Ordinary citizens want to buy it, but they don’t have the financial resources.

With the development of Hong Kong Island, the middle class and white-collar class are increasing, so the demand for personal housing is also increasing.

So at this time, commercial real estate began to rise.

Places like corridors and stairs have both practical needs and maintenance costs.

Originally, when a building is sold to one person, it is natural for the landlord to maintain these things.

But if you want to sell a building to ten people, or more, then if you don’t negotiate it right at the beginning, maintenance will become a problem in the future.

At this time, Huojia introduced "layered sales" and "public contracts", stipulating that owners need to jointly bear the maintenance of public areas.

In other words, in this regard, people are not thinking about making a profit, but about ensuring that residents in the same building do not have to have conflicts over the maintenance costs of these common areas in the future.

As for "tiered sales", it is clearly stated on the title deed which parts belong to all owners and which parts belong to individuals.

However, this public area does not have the false increase seen in later generations, nor is there any necessary public area.

Everything is sold based on actual square footage.

For example, if a floor is 400 square meters, the public areas of some buildings are 50 square meters, while those of others are 80 square meters.

So in actual sales, the sales of these floors and the subsequent maintenance costs that individuals need to bear are 50 square meters and 80 square meters.

But recently, the owner of this plastic flower factory is thinking of making a bigger one.

According to information obtained by Lou Xiao'e, a real estate project recently developed by this company is considering increasing the common area in proportion to the actual area.

Let’s use an example. For a house of 100 square meters, only 70 square meters are actual area. For the other 30 square meters, the owner must pay for it based on 100 square meters regardless of whether it is on that floor or not.

The owner must also pay for the future maintenance costs of the non-existent thirty square meters.

It can be considered as earning money twice.

This made Lou Xiao'e feel quite disgusted.

She felt that this was blackmailing the citizens of Hong Kong Island.

But there is no way. Many of the bigwigs in real estate in Hong Kong Island have been persuaded by the owner of the plastic flower factory.

But no one dared to be the first to step forward, and everyone was waiting for that person to take the lead.

This is also what makes Lou Xiaoe feel depressed.

No matter how much she hated that man, she couldn't deny that he had good taste and the property he chose would definitely be easy to sell in the future.

And if he succeeds, Hong Kong Island’s real estate market will enter a new era.

"Please ask him to come in, Manyun, and bring in two cups of coffee." Although Lou Xiao'e hated it, she couldn't just act out and avoid seeing him, so she could only answer the front desk like this.

A pair of black-framed glasses, a big forehead, a black suit, and a slightly hunched waist.
I don’t know if it has always been like this or if it started because of meeting Lou Xiao’e, a socialite.

Anyway, he looks quite humble and kind.

"Ms. He, I apologize for the intrusion." Mr. Mu smiled as he entered the room and took the initiative to extend his hand to Lou Xiao'e. "Hello, Mr. Mu, I haven't congratulated you yet!" Lou Xiao'e also smiled and handled the situation very appropriately.

In the current mainstream society's perception in Hong Kong, Lou Xiao'e and Mr. Mu are probably the same.

Mr. Mu's personal wealth is much greater than Lou Xiao'e's, and his company is about to go public.

He is considered one of the most prominent business figures in Hong Kong Island.

It is estimated that there are several hundred million worth of fixed assets.

However, Lou Xiao'e is definitely not as good as others in terms of wealth accumulation.

But Lou Xiao'e is not without advantages. Her cash flow is quite abundant.

After all, its main business is trading, and Lou Xiao'e's company now has tens of millions of US dollars in bank cash flow at all times.

Of course, not all of this money belonged to Lou Xiao'e, such as the final payment for the televisions she represented, and the funds collected from various processing businesses she helped to attract from the mainland.
All of this needs to go through her company's accounts.

She gets a lot of grease from handling pork, and with so much money flowing out of her company's account every day, she makes a lot of money within the reasonable rules.

What is a reasonable range of rules?
It is like Lou Xiao'e is a middleman. She attracts business from outside, deducts taxes and operating costs, and then retains a certain profit for mainland OEM companies.

This is normal procedure.

But these days, the cost prices in the mainland are fixed.

The prices of raw materials for most products in our country remained stable before the reform and opening up.

But international trade has changed too much.

It is very likely that something that costs one dollar today will become one dollar and fifty cents tomorrow.

With the depreciation of the US dollar in the past two years, the changes in this regard have been even greater.

This is Lou Xiaoe’s advantage.

The cost price in the mainland remains unchanged, but the price of products outside changes every day.

If she doesn't make money, who will?
Even if Lou Xiao'e gave more concessions to the mainland side, she could not beat the people who took the initiative to give her money.

Just like some time ago, she helped the mainland to attract a batch of screw business. At that time, the price was negotiated and the buyer wanted one million pieces.

The price has been negotiated.

She has also negotiated the quotation with the mainland.

But after the samples were handed over to the purchaser, the other party saw that the samples met their usage requirements and increased the order to five million pieces.

Of course, Lou Xiao'e couldn't be so foolish as to agree. After a quick investigation, she found that the prices of her competitors had already increased by 20 basis points due to the increase in raw material prices.

And due to the risk awareness of rising raw material prices, no one dares to accept long-term large orders.

But Lou Xiao'e dares!

She asked for a 30 percent price increase, and the buyer turned around and left.

But Lou Xiao'e took a picture of the price trend of raw materials.

Tell the other party directly that if we agree to sign the contract today, the price may increase by 30%, but it may not be certain tomorrow.

Others don't dare to take on such contracts because of the scale of those factories.

But the number of OEM companies that Lou Xiao'e can contact is infinite.

As long as there is profit, who in the mainland's factories can't produce a few qualified screws?

We just need to put forward the standards and requirements here, and the rest is the mainland's business.

And it can be produced in the shortest time possible, ignoring the impact of rising raw material prices to the greatest extent.

(End of this chapter)