My Lord, you need to stand up!

Chapter 463 Reluctantly Becoming a Mentor

Xu Rao and the Hong Kong businessmen that Wei Dong could contact were all big shots with hundreds of millions in assets.

As Qin Zhiming said, many of them were old friends who played cards and poker together, and they were all in sync.

Xu Rao had already spread the word to people about investing in a hotel in Pingjing.

Instead of the computer business he had previously claimed he could handle.

The old foxes knew perfectly well that he must have suffered a loss in silence before turning against them.

Last time, when Wei Dong was left speechless in Shanghai, they already guessed that they had suppressed him.

The smooth operation of investments in Jiangzhou and Shanghai further proves that Rang Weidong is the mainland guy worth doing business with.

In mainland China during the 1980s, it was extremely difficult for Hong Kong businessmen to find partners who acted in accordance with business rules.

Having financial strength, operational capabilities, and official recognition is already difficult enough; you also need to understand business rules.

It is almost equal to zero.

A very small number of families in Shanghai possess this kind of inheritance, but most have already lost their family fortune and have not yet risen up.

Therefore, upon hearing that it was located in the very center of Pingjing and was a converted military guesthouse that Xu Rao had been showing off, the old businessman would only be more cautious and hesitant to place his bet.

Xu Rao and his group were precisely lacking guidance. Their favorite thing to show off was their ability to handle everything, which is exactly what old businessmen fear most: the power to disrupt rules.

They only agreed to come after hearing that Wei Dong would be the contractor.

The smuggler who got the IBM agency rights had already heard from Uncle De and Lao Heng that Wei Dong was a true expert in the computer industry, having gotten so close to Apple. He was also interested in taking over the hard drive agency contract.

They immediately followed suit and headed north.

This forced Wei Dong to stay in Pingjing for another three days.

He wasn't nervous about discussing big business deals with people, so he just spent a few more days monitoring the car production line and playing basketball.

The female national team player who managed the workshop at the sanitary napkin factory is now also a part-time basketball coach, leading a group of college basketball students, mainly from sports academies, to help the boss show off his prowess.

So, Xu Rao and his group, who had arrived after nightfall, went straight to the night market.

As it turned out, Mao'er was the standout performer that night.

Because the night market is so crowded, the citizens of Pyeongjin won't give you any extra leeway just because you're dressed in a few colored suits or have slicked-back hair like a Hong Kong businessman.

The guy who drove to pick up Xu Rao had just led the Hong Kong businessman to the basketball court when he was attracted by a small, unlicensed stall next to it, where monkeys rode dogs and mynah birds told fortunes.

The dog is a Sichuan East Dog, which may not be familiar to Pekingese or other breeds. The little macaque is also a rare breed from Sichuan, and it was lying on the dog's back, intently pawing at its fur in search of food.

The main purpose is to attract tourists' attention.

But the myna bird was much the same, perched on Mao'er's shoulder and chattering: "Trick, trick..."

A deck of cards looks ordinary when you hold it in your hand, with the suits clearly visible on the face, but if you cover it up and move it away, the suits change.

It's very simple, but very strange.

Mao'er is also very good at that kind of calm and collected demeanor that comes with his young age. Don't miss out if you're passing by; there's a small box in front of him where you can tip freely. Those who are willing can take the bait.

There are too many guys in the Kyoto gang who like to play these tricks, and this guy is totally in his element.

Every night, he would meet people who wanted to buy dogs, monkeys, or myna birds from him, and he even called the police to arrest him for illegally keeping wild animals.

As it turned out, Mao'er was able to find the zookeeper's work ID from Benjiangzhou Zoo!
So they just had all of Xu Rao's buddies squat there.

Little did they know that the silent stones crouching nearby had seen everything.

When Wei Dong was substituted, he didn't even break a sweat. He shook hands and exchanged pleasantries: "I don't plan to run a hotel. The one in Shanghai is run by Uncle De's second son, and the one in Jiangzhou is run by Lao Heng and his team. My construction company is only responsible for assisting with the civil engineering construction."

The Hong Kong businessman said slowly and deliberately, "Pete, your reputation speaks for itself. I'm only confident in investing if you join the joint venture."

Wei Dong joked, "I only charge around ten million in construction fees. You're not trying to drag me into this to save on construction costs, are you? I currently have three medium-to-large-sized industrial parks under construction, and my funds are tight. I don't want to strain my cash flow."

The other party remained gentle and polite: "Pete, this is your attitude towards doing things. I can pay your construction costs on schedule, and you can use other projects as collateral for your investment in this project. What I need is for you to participate in the leadership, after all, I am not familiar with the investment situation in mainland China, and I need the most reliable guarantee."

Wei Dong earnestly corrected him: "You can refer to the mainland. I personally don't like the term 'mainland.' We are all one family. So, what is the approximate investment scale of the entire hotel?"

The man was very familiar with the situation: "The Swan Hotel in Guangzhou cost 1.2 million Hong Kong dollars. You've seen what it looks like. The German family invested 4.3 million Hong Kong dollars in a five-star hotel in Shanghai. I estimate it's no less than that."

Right now, one Hong Kong dollar is roughly equal to 50 cents, so you can calculate it at half price.

But with an investment of two or three hundred million, Wei Dong would genuinely prefer to use it for production. He glanced at Xu Rao beside him: "What's your opinion?"

This guy was indeed not good at these kinds of complicated calculations: "You just need to lend your name, I'll give you 10%, Gangzi and I will get 50%, and the Hong Kong side will get 40%, isn't that enough?"

Apart from Zhuoma holding a towel and a water cup and bowing her head to serve, the others were separated by the Hong Kong businessman's entourage.

So there's no need to worry about being overheard during the negotiations.

Wei Dong then countered, "So how much funding are you planning to contribute?"

Xu Rao was surprised: "Didn't we contribute the land and all sorts of connections? Aren't the two joint venture hotels in Beijing built in the same way?"

They let Wei Dong stay at that house regularly, and when it was built, they didn't even plan to give him shares!
What gives foreigners the right to swagger around on our land, so brazenly?

Wei Dong explained slowly, "These two hotels were built by overseas Chinese with the intention of opening up the domestic market and serving their motherland. They didn't care too much about shares. Now it's a business cooperation, so we have to follow business rules."

The Hong Kong businessman smiled and clapped lightly: "Pete is indeed a businessman with whom we can cooperate very smoothly in the mainland. I am very optimistic about this cooperation."

Xu Rao squinted: "Whose side are you on anyway?"

Now that he's been working at the joint venture factory every day, Wei Dong has gotten used to it: "I'm on the same page as the rules and regulations. If Hong Kong businessmen come to invest, they have to abide by the laws and regulations of the mainland. If someone on my side behaves badly, I will directly notify the police to deal with it. Similarly, we also have to take care of the interests of investors. Otherwise, why would foreign investors come to the mainland to invest? Are they just trying to be unruly and untrustworthy? The biggest problem in attracting investment is right here: mutual benefit and doing things according to the rules."

Xu Rao immediately countered, "How much did you invest in the hotels you co-owned with them in Jiangzhou and Shanghai?"

Rang Weidong frankly stated: "I didn't invest any money, but the joint venture agreement I signed with them had an appendix. It was only to comply with the policy requirement that local governments must hold a controlling stake in a joint venture. I don't profit from the joint venture. Once the policy is lifted, I will negotiate to return the shares. I have my own business and don't need to make money from Hong Kong businesses' investment projects. The key point is that we can learn a lot from the advanced experience of Hong Kong businesses."

How could those shrewd people who would skim off a feather from a passing goose possibly be as magnanimous as Wei Dong?

Looking back at the Hong Kong businessman who was full of admiration, Xu Rao was a little dumbfounded. He was definitely more knowledgeable than those self-righteous state-owned enterprise cadres of joint venture hotels, and more importantly, he couldn't afford to lose face: "Then what do you suggest?"

Wei Dong felt like he was being taught step by step: "The location is indeed good. We estimate it to be 10%. He also said that we can use other projects as collateral. Are there any other large projects that can be converted into a share? According to the policy, we must hold a controlling stake, but the profit sharing can be based on the investment ratio, or the independent investor can make money within 20 years. Once we make 200,000, the hotel is yours. These are all negotiable. There are many flexible conditions. It's not a rigid rule that 'I'm not investing any money, and you have to share the profits with me after you invest.' We need to fully consider that people might not make any money and are just investing for nothing."

Xu Rao thought for a moment: "Then it's just a television production building? We certainly can't wait twenty years to start reaping the rewards, there will be some."

Wei Dong thought that this was the only way. If he didn't participate, these proletarians who wanted to get something for nothing wouldn't be able to finalize the project, and they wouldn't be able to calm their tempers, which would affect many things in his life.

He explained to the other party: "Although this office building hasn't started construction yet, it will definitely be completed before the hotel. I can mortgage a certain amount of the same size, and I can advance the funds to complete the hotel construction. The policy requires that the mainland shareholders must hold a controlling stake, but we can agree on a profit-sharing ratio based on the actual situation. I will not participate in the profit sharing. After the building is completed, I will collect my construction fees and leave. But the building... has some shares in it. Ugh, this is so troublesome. Damn it, if it weren't for helping this reform and opening-up, I really wouldn't get involved in this kind of thing."

The key lies with the mainland partners, who always insist that capitalists deserve to invest.

Just because I'm poor doesn't mean I deserve to get something for nothing.

How is this any different from seeing India dealing with foreign investment 30 or 40 years from now? Actually, we've all come from this kind of absurd situation.

This forced Wei Dong to act as the lubricant.

Fortunately, his participation was a guarantee, and this statement made it clear to the Hong Kong businessman that he truly understood the business principle of fair trade: "Pete explained it very clearly. The joint venture ratio is 51 to 49, but the actual profit-sharing ratio is 3:7. I will personally give an extra 10% to Pete as a thank you for your efforts in making the project a success."

Hong Kong businessmen aren't unwilling to spend money; they are well aware that every penny they invest now will yield tenfold or even a hundredfold returns in ten or twenty years.

The key lies in the timing of entry.

It would be painful to do it too early. As Collins and others described, the Americans in the joint venture were all a bit doubtful about life. The Hong Kong businessmen were even more afraid of being taken over all at once.

If you're too late, the opportunity will have already been snatched away by someone else.

Therefore, it is essential to ensure that the investment is reliable. At this stage, it is acceptable to earn less or no money at all.

In reality, Xu Rao and his group didn't spend a single penny and did nothing but sell the land, yet they still held a 30% stake. It wasn't a loss of face for them.

Let Wei Dong be the one who runs around doing all the work and only get a 10% commission.

Who told him to bravely march towards Rome on his own?

Satisfied, they instructed their assistant to begin recording the agreement memorandum. They would work through the night to draft various agreements, and tomorrow they would definitely hold a grand public signing ceremony.

The smuggler who had been standing on the sidelines, occasionally turning his head to watch the myna bird carrying the talisman, finally faced Rang Weidong. However, he couldn't speak Mandarin, so Rang Weidong had to ask Zhuoma to call his translator over.

Then, in that brief moment, the smuggler finally had a chance to reach out and pat Mao on the shoulder, gesturing for him to take his deck of cards...

With just this one movement, the Sichuan dog almost jumped up and attacked the figure that dared to touch its owner from behind.

It was all thanks to Mao'er reaching out and pressing it down.

The eyes of the several Beijing gentlemen lit up...

They have no interest in doing business; they just love playing these games.

(End of this chapter)