Siheyuan, Shazhu: I have both parents in this life

Chapter 300 The factory was approved.
Two days later, at 2 p.m., at the Bank of China Tower in Hong Kong.

He Yuzhu, along with Xiaoman and Xu Damao, entered the conference room on time.

President Liang was already waiting, surrounded by several capable-looking mainland officials, the leader of whom was a man around fifty years old.

"Mr. He, welcome!" President Liang stood up warmly to shake hands and then began to introduce them, "This is Director Zheng Guodong, the leader of the special task force sent from above. Director Zheng, this is Mr. He Fei from the Yellow River Group."

"I have long admired Mr. He's name." Director Zheng extended his hand, his smile gentle yet tinged with scrutiny.

"Director Zheng, you're too kind!" He Yuzhu also extended his hand.

“Mr. He, your investment proposal has attracted great attention. We are here today hoping to have in-depth discussions with you and expedite the project’s implementation,” Director Zheng said.

"It is my honor to contribute to the development of my hometown. Please have a seat."

After Director Zheng sat down, He Yuzhu calmly took his seat and then got straight to the point: "I'm sure you've all studied the plan in depth. Now, what specific issues need to be discussed?"

Director Zheng didn't mince words, producing the documents: "Mr. He's plan is very ambitious, and the higher-ups attach great importance to it. Our core objective for this trip is to expedite the project's substantial implementation. After preliminary research, we believe we can proceed in stages, prioritizing projects that are ready and yield quick results."

“That suits me perfectly. I wonder which direction the task force recommends to prioritize?” He Yuzhu nodded.

"The domestic automotive manufacturing industry currently faces a huge shortage of vehicles, especially passenger cars and light transport vehicles. Your proposal to cooperate with existing domestic manufacturers is very pragmatic and can quickly generate production capacity. After careful consideration, we have decided to adopt your suggestion," said Director Zheng.

"I would like to hear the details," He Yuzhu said.

"Mr. He has done a more thorough job than we have in choosing Liuzhou Tractor Factory as our partner. We only considered the convenience of the location and did not consider the production issues. After investigation, we found that although Liuzhou Factory mainly produces tractors, it has engine production capabilities and a certain mechanical manufacturing foundation. Its technical foundation and industrial workforce are more solid. If you build a factory with them, you can start production more quickly."

He Yuzhu nodded and said, "That's right, cars and tractors are connected in many ways."

Director Zheng exchanged a glance with an industrial cadre beside him: "We haven't informed the Liuzhou factory yet, but if we do, we will definitely go all out. However, we need to discuss this cooperation model."

He Yuzhu said, "My idea is that Huanghe Industrial will contribute capital, some key equipment, light vehicles ('Warrior' Jeeps), and design drawings, technical standards, and management systems for future new passenger vehicles, accounting for 51% of the shares. If it's inconvenient for us to acquire the land due to our status, we can let the Liuzhou plant acquire it. In addition, the Liuzhou Tractor Plant needs to provide other equipment and technical workers to account for 49% of the shares. If Huanghe acquires the land, then they can only account for 20%."

After speaking, He Yuzhu stopped, giving the other party time to discuss.

The people on the other side huddled together and discussed it for a while, and quickly came up with a solution. In the end, it was President Liang's words that played a key role.

"Gentlemen, we've clearly gotten a huge advantage in this matter. Land can be approved for businesses, and what the country lacks most is money and technology. We still want to gain actual control?"

"There's no precedent for this!" Director Zheng said.

"This is the first case to date. Do you really think that He Fei, with his status, couldn't acquire land in China?"

"It should be approved. His port and real estate development projects have also received instructions from above. We'll observe the preliminary projects, and if they perform well, they'll all be approved," Director Zheng said.

"Then what are you hesitating for? It's just a joint venture factory. If he wanted to take over the entire Liuzhou Tractor Factory, he would definitely have to report it to higher authorities, because you don't have that authority. Now that the factory has been authorized, shouldn't it?" President Liang said.

"Yes," Director Zheng said.

"Let me add something else. He Fei doesn't actually lack land or factories. He still has many undeveloped areas in Hong Kong, and he doesn't lack funds. He's just using bank loans to establish business relationships. You can continue the discussion; I won't participate anymore." After saying this, President Liang returned to his seat.

"Mr. He, how much capital do you plan to invest in the car factory?" President Liang was more concerned about the foreign exchange issue.

"Let's invest five million US dollars in the first phase. Not counting equipment, that should be enough to build a factory in China."

"That's enough. It seems Mr. He has quite a grand plan this time."

“It’s not that big. I’m afraid the domestic market won’t accept it all at once, especially in terms of shareholding.” He Yuzhu pointed out the key point. Actually, sole proprietorship is also possible. In terms of investment, 90% is enough. Only 51% is required because it is objectively not allowed.

"Yes." President Liang was aware of this. If it were someone else, they would have asked for a much higher price. Let's negotiate.

After a short while, Director Zheng and his team returned to their seats. Director Zheng said, "The 51% controlling stake requirement is acceptable, but we still need to submit it for approval."

“No problem!” He Yuzhu wasn’t in a hurry, and besides, the procedures in China definitely wouldn’t be that fast.

"Okay, let me move on to the next project, the refrigerator factory. What are Mr. He's thoughts on this?"

"I plan to build a refrigerator factory wholly owned by me. I wonder if you can approve the land for me."

Director Zheng frowned. This was different from what they had envisioned; they had originally planned to establish a joint venture factory.

“Of course, if there are suitable factories in Guangdong Province, it’s not impossible to form a joint venture, but the shares will not be allocated in this way. As far as I know, there are only a few companies in China that have the capability to produce such products, and the current production capacity is still a problem,” He Yuzhu said.

"What about the supply of materials and parts? Could we consider other domestic factories, and also the issue of exports?"

At this point, He Yuzhu understood. This wasn't just about letting other factories benefit from the technology; they also wanted to earn foreign exchange.

“We’ll take as much of their products as they meet the standards, and as for exports, that’s not a big problem either,” He Yuzhu said.

"Yes, we will include that in the report."

"Anymore?"

"There's another unrelated point, which concerns the Beijing Automobile Factory," Director Zheng said.

Upon hearing this name, He Yuzhu and the other two all wore strange expressions.

Xu Damao looked at He Yuzhu, who gave him a look that said, "Take it easy."

"Please speak, Director Zheng," He Yuzhu said.

"Well, the Sijiucheng Automobile Factory mainly produces Jeeps. Last year, someone introduced them to AMC and they talked about four-wheel drive technology. But AMC said that their technology had already been sold. However, as far as we know, the Jeeps that Mr. He sent to Jidong for disaster relief a few years ago had this technology. Do you know?"

Now Xiaoman and Xu Damao looked at He Yuzhu with even more curiosity. They were wondering how the old factory director of the Beijing Automobile Factory would solve this problem.

"So what are their intentions? Technological cooperation? Or a joint venture?"

"What's the difference?"

"As far as I know, the R&D team at the Beijing Auto Factory is quite capable. Of course, this is information from a long time ago, and I don't know the current situation."

"I'll have to go back and ask to find out."

"Technology cooperation means we license our four-wheel drive technology to them, and they pay patent fees. As for joint ventures, I don't need to explain that."

"Understood, I'll go back and confirm with the relevant personnel."

"If Director Zheng has nothing else, I also have two questions about the development of land around the port and border crossing. I wonder if Director Zheng can answer them."

"There are indeed instructions on this, but we need to see the results from the car factory and the refrigerator factory before we can make a decision."

"Understood." He Yuzhu nodded.

"That's all for today. We'll report back what we discussed today when we get back. Mr. He, just wait for our news."

“Okay.” He Yuzhu stood up, and Director Zheng also stood up and shook hands with He Yuzhu.

After He Yuzhu and his group left the Bank of China Building and got into the car, Director Zheng said to President Liang, "Old Liang, didn't you think the other party's expression was a little strange when I mentioned the Sijiucheng Automobile Factory just now?"

"That's true. Maybe they knew about that factory before, otherwise how would they know that the technical team is capable?"

"Hmm, this He Fei is no simple man. He knows a lot about things in China."

"As far as I know, he came from China, but I don't know exactly where he came from," said President Liang.

Didn't you ask?

“Those who came to Hong Kong in previous years all had their reasons, but they might not be willing to say them,” said President Leung.

"That makes sense, no wonder he worked so hard when the country was hit by a disaster."

"So try your best to meet his conditions. You should also mention this when you report it."

"understood."

Once in the car, Xu Damao asked, "Brother, are you really planning to cooperate with your old factory?"

"Are you afraid people will recognize me?" He Yuzhu asked with a smile.

Xu Damao nodded and said, "Yes, don't forget how we got out."

“The situation is different now, and it may change again in two years. Besides, it’s not like I’m the one who’s going to negotiate. Let Yang Tao and the others go.”

"I'm just afraid they'll figure it out," Xu Damao said.

"If you guessed it, you guessed it. It probably won't be long before we can go back to Beijing."

"Really?" This time, Xiaoman and Xu Damao spoke up together.

"Let's see, it shouldn't be long."

"That's great! I'm actually thinking of going back to take a look. Do you think we can get our house back?" Xu Damao said.

"You still care about a side room?" He Yuzhu asked curiously.

"No. 95 Courtyard is nothing compared to my father-in-law's house."

"Oh, they have a son. Who do you think you are?"

"The house was given to Xiao'e, and the deed is with Xiao'e."

"By the way, do you still have the things you entrusted to me? Do you want them back?" He Yuzhu asked. "Ah, you mean those antiques?"

"correct."

"No, you've given me enough over the years. Those things are just decorations."

"You'll regret this," He Yuzhu teased.

"No regrets. Xiao'e and I both work for the group now, and we earn quite a bit every year."

"Hahaha, this isn't like you at all."

"Brother, don't say that, it makes it sound like I'm greedy for money," Xu Damao said embarrassedly.

"Is not it?"

"That's true before you came to Hong Kong. Back then, there was nothing we could do, we were poor. Look at us now, we have everything we want. Why can't I change things up?"

"Hehehehe." Xiaoman laughed from the side.

"Sister-in-law, you're making fun of me too."

"Ahem, I just think you've broadened your horizons now," Xiaoman said.

"Indeed, you may still need to handle the Da Mao refrigerator factory matter later. In addition, you need to find a way to expand the business of the medical device company to the domestic market in the future. It's not just about imports; you also need to find a way to bring the technology back so that you can build your own factory in the future."

"Brother, can we really make that many?"

"Go ahead and do it. If it doesn't work out, find someone to cooperate with. Anyway, we can't let all this money go to the foreigners." He Yuzhu thought about how lucrative this industry was. The agency alone supported countless people, so you can imagine how much money the original manufacturer made from China.

"Okay, there's still time to prepare for that. But what about the pharmaceutical factory? Are we still going to proceed?"

"We'll definitely do it if we get the chance. Those guys took a lot of things left by our ancestors back then. Do you think they'll do the same?"

“Of course,” Xu Damao said.

"So there's another task: to save those ancient formulas. We'll talk about that later."

"Ah."

After the Spring Festival in 1979, He Yuzhu received news from Yang Tao that fifty "Warrior" aircraft had been produced. He also inquired about the situation of aircraft parts from Gu Yuanheng. After learning the quantity, he ordered all the parts to be loaded onto a ship and transported to Huacheng.

Then one of the ship captains who delivered the goods sent a telegram to Wu Qianli, instructing them to send someone to pick up the goods.

After receiving the telegram, Wu Qianli read it and reported it immediately. He didn't want his brother to suffer a loss, even though He Yuzhu said it was a gift.

The higher-ups were in a dilemma because this wasn't part of the plan. However, they had heard that He Yuzhu might invest in China, so after some research, they decided to take it over first and see where they could make up for it.

Wu Qianli sent someone to receive the items, along with several letters. Several of his old comrades wrote one each, firstly to express their gratitude, and secondly to tell He Yuzhu to let them know if he needed any help, as they still had some connections in the area.

Not long after the goods were transported back, an unexpected situation occurred, and Wu Qianli received orders to urgently redeploy troops.

A few days later, the members of 'Wolf Fang' returned to Hong Kong.

He Yuzhu told the others to rest and asked 'Violent Wolf' to come and report alone.

"boss!"

How is the training going?

“They’re not up to the high-difficulty tasks yet, but they’re fine with regular missions,” 'Wolf' said.

Did they say where they were going?

"No, Commander Wu said it was an emergency mission, and the training ended early. He also asked me to give this to you."

"Okay, I understand. You guys should take a good rest for a few days. You've worked hard for over a month."

"It's not hard work. We're all happy to train students like this."

"It seems like you guys are getting along well."

"Yes, I hope I'll have the chance to go again in the future."

"It's going to be tough," He Yuzhu said. After this incident, training will basically be kept secret. This time the situation is special, and there will definitely be no chance in the future.

"why?"

"They are soldiers."

"understood."

"Go back and tell those guys that they'll all get a subsidy this time."

"thank you boss!"

It wasn't until March that He Yuzhu received sporadic news from newspapers in other countries, all of which were collected and sent back by local officials.

It wasn't until March 16th that we received confirmation that we had won.

As it turned out, He Yuzhu already knew; he was concerned with the specifics, but unfortunately, he had no way of knowing.

In April, Director Zheng and his team arrived in Hong Kong again, and this time the talks were much more detailed.

Two plots of land, 500 mu and 100 mu respectively, were designated in Xiangdu for the construction of an automobile factory and a refrigerator factory.

With more land allocated, He Yuzhu's investments naturally had to change. The investment in the car factory directly increased to ten million US dollars, and the investment in the refrigerator factory to two million US dollars, because the refrigerator factory's equipment was already in place, but the technology might need to be upgraded.

After signing the letter of intent, Xu Damao and Yang Tao started traveling back to China to look at land, find construction companies, communicate with relevant local departments, and so on. In short, the two of them are now basically stationed there permanently.

He Yuzhu's payment was deposited into the Bank of China in Hong Kong immediately after the letter of intent was signed, which made President Liang very happy. This was a good start.

President Liang then brought up another matter: there was a large project in China that required a lot of foreign exchange, and he asked He Yuzhu if he could deposit a portion in advance, without transferring the money domestically, and repay He Yuzhu later when the Bank of China had the funds. He Yuzhu asked what the project was, and President Liang said it was for color television picture tubes; that whole set of equipment would cost a considerable amount of money.

He Yuzhu asked how far things had progressed, and President Liang exclaimed in surprise, "Mr. He, you're not interested in this too, are you? As far as I know, your group doesn't seem to have any related business."

"I'm just asking, I'm not happy about spending such a large sum of money to make a living."

"Who says otherwise? If it weren't for that incident back then, we should have partnered with RCA North America. But this time it would have been much cheaper."

“North America? Heh!” He Yuzhu sneered, “That’s even worse.”

"Mr. He has a lot of opinions about them," President Liang said with a smile.

He Yuzhu briefly explained the semiconductor patent issue, and President Liang was speechless. Sure enough, none of these countries were easy to deal with.

"We've just started talking, and we've only roughly defined the scope and price," President Liang said after thinking for a moment.

“Okay, I understand. Let me think about the deposit. After all, it’s a large sum of money, and you know how things are in Hong Kong right now,” He Yuzhu said.

"I understand, I understand, then I'll wait for your good news!" President Liang said with a smile.

"Then I'll go back first."

"I'll send it to you!"

"no need."

After returning, He Yuzhu sought out Bai Yifeng.

"Old Bai, I need you to do something for me."

"what's up?"

"Are any of our people in Xiao Rizi?"

"Yes, I specifically arranged it when the steel mill was working on technology and equipment."

"Alright, help me gather some information."

"You say."

"The supporting production equipment and technology for color display tubes."

"The boss wants to produce color TVs? These days, Hong Kong is full of cheap goods."

"What brands are on the market now?" He Yuzhu hadn't really paid attention to these things. He had some at home, but he hadn't really looked at them.

"Calendars, Panasonic, Sony."

"Then let's gather their information."

"This is a huge project!!!"

"Let's collect the data first and see what the situation is."

"Okay, I'll make arrangements right away."

(End of this chapter)