Siheyuan, Shazhu: I have both parents in this life

Chapter 305 People from Pengcheng
He Yuzhu introduced his group, including Xiaoman, He Yuxin, Chen Sheng, Wilson, Gu Yuanheng, and Xian Xingyao. As for Xu Damao and Yang Tao, they were still in Xiangdu.

There are plenty of section chiefs and department heads in Shenzhen, and the situation is similar in Shekou Port, except there are also some chief engineers and the like.

After the meeting, He Yuzhu personally led the group to Kwai Chung Wharf.

Kwai Chung Pier is extremely busy, with cranes operating in an orderly manner along the coast, constantly loading and unloading containers.

Director Zhang walked to the dispatch room window, watching the staff inside record data on the instruments and occasionally issue instructions via walkie-talkie. He turned to Manager Ling and asked, "Xiao Ling, how's this dispatch system?"

"It's no worse than what we've seen before, and much more advanced than we expected," Manager Ling replied.

"Is it just not bad?" Director Zhang said with a smile.

"It's in the top three now," Manager Ling changed his tune under Director Zhang's intense gaze.

"If we're going to be honest, then we should be realistic!" Director Zhang patted him on the shoulder.

The chief engineer, who was traveling with them, led a group of people to oversee the dock's pile foundation structure, gantry cranes, and other equipment. He also asked He Yuxin to help find technical personnel to answer their questions.

He Yuxin consulted He Yuzhu, and only after He Yuzhu nodded did He Yuxin go to find someone.

Director Zhang had actually witnessed this scene, nodded to himself, said a few words to his subordinates, and then some people from Pengcheng also went along.

Kwai Chung Port is large enough that it took us all morning to see it all, mainly because the engineers were the ones who took up so much time.

At noon, He Yuzhu invited everyone to a restaurant, but they refused. Instead, He Yuzhu had boxed lunches delivered. Upon seeing the food in the boxed lunches, Director Zhang remarked, "In China, this kind of food would be served at a banquet."

He Yuzhu laughed and said, "I also own several restaurants, and this is made by one of them."

"No wonder, no wonder, this Shandong cuisine is so authentic."

“My father is a master chef of Shandong cuisine,” He Yuzhu said.

"Then we are truly fortunate!" Director Zhang said with a smile.

In the afternoon, we went to Tseung Kwan O, an area that has everything: a port, oil storage area, and factory area.

"Ladies and gentlemen, this is Tseung Kwan O, another important integrated development area for our group," He Yuzhu introduced.

“Mr. He should have brought us here directly,” Director Zhang said.

“There’s a comparison in Kwai Chung, because it’s not just us there, as you all saw. If you come directly here without a comparison, it’s hard for you to judge,” He Yuzhu said.

"That's true, then let's take a good look at Tseung Kwan O!"

"please!"

"Mr. He, how are the safety protection and fire protection systems in this oil storage area designed?" As they walked into the tank area, a safety officer from Shekou Port asked, looking very carefully at the layout of the tank area and the pipeline routes.

"We have adopted zoned isolation, automatic sprinkler, foam fire extinguishing and all-weather monitoring and early warning systems. Key parts have redundant designs, and emergency plans are regularly drilled. We can provide detailed information on specific technical parameters and safety standards in future cooperation."

Xian Xingyao, who was accompanying them, took over the conversation, pointing to the control tower and dense pipelines in the distance. As the person in charge of this project, he naturally knew it best.

They were then asked many more questions along the way, even about parameters, which the Yellow River Group team answered one by one.

By the time they finished visiting Tseung Kwan O, it was already evening. The inspection team was utterly amazed by the tour, their eyes practically shining with excitement, wishing they could take everything back to China. He Yuzhu, seeing this, simply smiled knowingly; this was exactly what he wanted to achieve.

Of course, the tour of the actual core technology area was just a guided tour without much explanation, which the delegation found regrettable.

The delegation declined He Yuzhu's invitation to a banquet and went directly back to the hotel arranged by President Liang.

They need to properly digest what they've learned that day, and then decide what to see tomorrow.

The next day, the delegation requested to visit the renovated wharves of Wharf Holdings and Hutchison Whampoa.

Only through such urban renewal can we truly assess the technological level of the Yellow River project, and He Yuzhu did not refuse.

After the tour, the people at Shekou Port were convinced, while Director Zhang was all smiles, as this provided him with a backup plan.

In the afternoon, the tour group was taken to the newly built public housing, upscale residential areas, newly constructed residential districts, CBD, and commercial complex projects integrated with the MTR, showcasing the new city's comprehensive residential, commercial, and transportation facilities.

This greatly inspired the leadership of Pengcheng, as this is the direction Pengcheng should take for future development.

After returning home that evening, the tour group split into several groups after discussion. Those interested in the port wanted to continue visiting the port, those interested in industry wanted to see factories and laboratories, and those interested in municipal projects wanted to see other real estate projects, including public welfare projects.

Then on the third day, the Yellow River side also split up. He Yuxin was in charge of the port, A Lang was in charge of real estate, and Gu Yuanheng and Xian Xingyao were in charge of the factory. As for the laboratory, the other party did not mention it, and He Yuzhu planned to talk about it at the end.

The week-long intensive inspection tour has finally come to an end. During the tour, we were taken to see the non-core areas of the car factory, steel factory, helicopter factory, semiconductor laboratory, car laboratory, helicopter laboratory, and color picture tube laboratory. Of course, the core components were not shown to the tour group, which the group understood.

After the visit, the members of the Pengcheng delegation returned to the negotiating table with a sense of awe and reflection.

The modern port operations, efficient industrial zone management, and forward-thinking urban complexes showcased by Huanghe Group, along with its advanced light and heavy industries, unfold like a future painting before them—precisely the ideal Shenzhen should be.

However, realizing a dream requires real money and a feasible path.

After the core delegation returned from the negotiations, they finalized their plans, focusing on three main projects: the development of Yantian Port, the comprehensive development of land around Luohu Port, and the construction of Pengcheng public housing to address the urgent needs (this was decided on short notice after visiting Xiangjiang public housing).

The negotiations for cooperation with Yantian Port were personally led by Director Zhang, with Manager Ling and his technical team from Shekou Port also participating as technical support.

“Mr. He, we have witnessed firsthand your group’s strength in port planning, construction and operation, and we are deeply impressed,” Director Zhang said.

“Director Zhang, we’re already so familiar with each other, let’s get straight to the point,” He Yuzhu said.

"Haha, good, Mr. He is indeed a straightforward person. Then I won't beat around the bush. Yantian Port has deep and wide waters, making it a treasure trove for building an international deep-water port. We very much look forward to the participation of a powerful and experienced partner like the Yellow River Group in its development. May I ask what specific plans your side has for cooperation?"

He Yuzhu gestured to He Yuxin.

He Yuxin began distributing the pre-prepared plans.

After finishing sending the message, He Yuxin said, "Can I explain as you all read?"

Director Zhang and Manager Ling exchanged glances and nodded in agreement.

He Yuxin then continued, “Based on our operational experience with Kwai Chung, Tseung Kwan O, and other advanced international ports, and combined with the natural conditions of Yantian Port, we have proposed a phased development plan. In the first phase, we hope to build at least two deep-water berths capable of accommodating third-generation container ships (2000-3000 TEUs) and supporting storage yards, gates, and modern loading and unloading systems.”

When everyone turned to the section he mentioned and looked at it carefully, to be honest, the number shocked everyone present, especially those from Shekou Port.

“Neither your Kwai Chung Port nor Wharf Holdings have reached this scale,” Manager Ling said.

“Our technology has reached that level. Kwai Chung and Wharf are only limited by port conditions; that’s all we can do,” He Yuxin said.

“According to your plan, the investment won’t be just a few hundred million; it could be billions or even tens of billions,” Manager Ling said.

“We won’t need that many. If that were the case, I would suggest building four, eight, or even more,” He Yuxin said.

Manager Ling asked, "With such a large-scale investment, how do you intend to participate? Sole proprietorship? Joint venture? And how will the shareholding ratio be set?"

Director Zhang glanced at Manager Ling, realizing it was a question he shouldn't have asked. Manager Ling gave an apologetic look, though he was genuinely concerned.

He Yuzhu gestured for He Yuxin not to speak, then he looked at Director Zhang, who nodded.

He Yuzhu then began, “We favor a joint venture model. Firstly, Yantian Port is a vital strategic resource for the nation, and secondly, it is also a crucial strategic resource for Shenzhen. Therefore, deep involvement from both the nation and Shenzhen is inevitable and key to ensuring the smooth progress of the project. Our proposal is as follows: Yellow River Industry will contribute capital, port planning and design, core equipment procurement channels, a modern management system, and future shipping route resources, holding a 65% stake. Your company will contribute land value and some supporting funds, holding a 35% stake.”

"65%?" Director Zhang frowned slightly. This shareholding ratio far exceeded the limit (the policy stipulates that foreign investment should not exceed 50%). "Mr. He, Yantian Port is a key national development project. We cannot agree to such a high shareholding ratio, and the policy does not allow it either."

"It's okay, I'm just expressing my idea. Can we talk about the specifics?"

"50% is the bottom line," Director Zhang set a red line.

The atmosphere in the meeting room instantly became somewhat tense.

He Yuxin wanted to speak again, but He Yuzhu stopped him, saying, "Director Zhang, if it's 50%, then who really has the final say between us?"

"This"

"65% is not enough, so our minimum requirement is 51%. I want to ensure decision-making efficiency and control over continuous investment, which is crucial for attracting international shipping giants and ensuring the port's long-term competitiveness. We are investing not only capital, but also internationally leading technology, management, and global network resources. Holding a controlling stake is the key to ensuring that these core investments are effectively implemented and maximize their benefits."

"We understand that, but I can't give you a decision right now."

He Yuzhu nodded: "I understand. Of course, I want to emphasize that your side has full seats and a voice in the joint venture's board of directors and management. Major decisions require consensus from both sides. The fundamental issues such as port safety supervision and sovereignty undoubtedly belong entirely to the Chinese side. Our goal is to build a win-win, internationally competitive super port, not to fight for control."

Director Zhang's expression softened considerably, and he exchanged a few quick, low-pitched words with the people around him.

Then he spoke again: "Mr. He, we will report the model you proposed. Whether it is a 65% or 51% controlling stake requirement, it involves major policies and cannot be decided at our level. It must be reported."

“Of course!” He Yuzhu said.

"Thank you for your understanding, but we recognize your strength and sincerity. For the Yantian Port project, Pengcheng is very keen to cooperate with the Yellow River Group. While awaiting approval from higher authorities, we can have in-depth discussions on technical details, planning refinement, and preliminary preparations, such as establishing a joint working group to conduct more detailed geological surveys and engineering pre-studies. Once the equity framework is approved in principle, we will immediately move into substantive operations."

This statement is tantamount to giving the green light to the cooperation; all that's left is to finalize the shareholding percentage so that the contract can be signed and construction can begin immediately.

He Yuzhu nodded: "We fully agree. Our technical team is ready to cooperate with you in the preliminary work."

"Mr. He, you can rest assured, we won't do anything like discarding someone after they've served their purpose," Director Zhang added. "As for business, if you were to seek investment from others, I would only feel sorry for you, though it's more likely that it's because we lack the resources," He Yuzhu said politely.

“There are currently no competitors on our list of potential partners who can rival Mr. He,” Director Zhang said.

He Yuzhu nodded. He didn't ask who else was involved; it didn't matter. That project couldn't be done by foreigners. At most, it would be shelved, but it would still be done later. Then there wouldn't be any 50% restriction, it would just be many years later.

The port project negotiations lasted two days, during which many details were discussed. If it weren't for the shareholding issue, the contract could have been signed immediately.

On the third day, the focus of the negotiations shifted to the development of the Luohu Port Economic Zone, which could bring commercial value more quickly.

This meeting was mainly led by cadres from Pengcheng responsible for urban planning and construction, who liaised with A Lang. Of course, He Yuzhu and Director Zhang were the main leaders of the meeting.

“Mr. He, Luohu Port is the most important land port connecting Shenzhen and Hong Kong, with dense flow of people and goods and huge commercial potential.” The head of the planning department unfolded a map and highlighted a large area near the port. “In accordance with the spirit of ‘pioneering and experimenting’ of the special economic zone, we plan to carry out a comprehensive transformation and upgrade of this area, with the goal of creating a modern port economic zone integrating commerce, finance, offices, hotels, and cultural leisure, becoming a window and calling card for the special economic zone to the outside world.”

He Yuzhu laughed and said, "There's no need to introduce this to us. I remember that this was the first thing I came up with. These ideas of yours should all be extracted from the proposal I gave to you back then."

The head of the planning department was embarrassed, as this was indeed based on the planning proposal from the Yellow River Group.

"Get to the point," Director Zhang said.

"Yes, this blueprint is not detailed enough; we would like to know more," said the head of the planning department.

Ah Lang looked at He Yuzhu, who pondered for a moment before nodding. Actually, he had originally intended to acquire the land before offering it, since real estate developers, unlike port developers, couldn't monopolize the market.

Director Zhang noticed this and said, "Mr. He, rest assured, before the contract is signed, you don't need to provide us with paper documents of your specific plans, and we will keep them confidential for you."

He Yuzhu nodded, signaling Ah Lang to begin.

A Lang nodded and then said, "Our idea is to build a large-scale 'port hub complex'."

“This name is very appealing, Mr. Hong, please elaborate,” Director Zhang said.

A Lang continued, "The core idea is to rely on the port and the future subway to build office buildings, supporting five-star hotels, podium buildings and underground spaces, develop large-scale high-end shopping centers, and introduce some international brands and specialty restaurants."

"The subway? That seems far off, considering we've only just established the special economic zone," Director Zhang said.

"Can we plan ahead, including public transportation, train stations, and so on?" He Yuzhu added.

"Mr. He's vision remains as forward-thinking as ever."

"Actually, this is the law of development. For a place to develop, it must have well-developed transportation. Otherwise, no matter how good other aspects are, it will be in vain. Don't you agree, Director Zhang?"

"That makes sense. Just like Shanghai and Huacheng, both water and land transportation are very developed."

"Therefore, the Shenzhen subway should be a top priority for you, Director Zhang, to follow up on after you return, as well as the highways."

"Speaking of highways, your company already has a precedent with Xiangdu. I wonder if we could cooperate on that basis as well?"

He Yuzhu shook his head, "That's different. We can't build a highway network as big as Pengcheng."

"Hahaha, Mr. He is too modest. We'll talk about that later. Let's talk about the Luohu Port today."

“Okay, A-Lang, continue,” He Yuzhu said.

"Okay, in terms of cooperation model, we prefer market-oriented operation. We hope to acquire the land use rights of the core plot at a reasonable price and carry out independent development, holding and operation. Of course, in terms of overall planning, we will strictly abide by the unified deployment and requirements of the Special Administrative Region Government to ensure coordinated development with the surrounding areas."

The topic seems to have moved forward again, and Pengcheng's team has started discussing it once more.

Then, Pengcheng agreed in principle to the real estate development project, but they have to wait for Pengcheng to go back and discuss whether to make a plan around the Yellow River or to produce their own version of the city plan first.

He Yuzhu was also troubled by this. Was urban planning such a simple matter? It would take a long time.

However, Director Zhang added at the end, "If the assessment of urban planning takes too long, we will prioritize starting the Yellow River plan."

Subsequent negotiations went relatively smoothly, with the focus on the location, size, transfer price, and development timeframe of specific plots of land.

Both parties agreed that a professional team would conduct a detailed land assessment and negotiate commercial terms.

The next day, we moved on to the last topic, which was raised on short notice because the tour group had visited public housing estates in Hong Kong.

“Mr. He, the special economic zone is in its early stages, and all industries are waiting to be developed. One of the most pressing problems right now is ‘housing.’ Many of the first batch of builders, introduced cadres, and technical personnel are still living in simple sheds or temporary shelters. Only with stable housing can people work and thrive. We plan to start the construction of a number of public housing units to solve the housing problem for early talents, but we are short of funds and experience. What do you think?” Director Zhang looked intently at He Yuzhu.

"Director Zhang, please speak frankly. We've already discussed so much, you should be able to feel our determination to invest. There's nothing we can't say."

“Alright, then I’ll get straight to the point. During our visit, we were deeply impressed by the public housing estates built by your group. They were well-designed, well-equipped, and well-managed. We wonder if your group would be interested in participating in the construction of the first batch of public housing in the Special Economic Zone? Although the profits are far less than those of commercial real estate, the significance is immense. It truly lays the foundation for the development of the Special Economic Zone and alleviates the concerns of talented individuals.”

The meeting room fell silent, and everyone looked at He Yuzhu.

The Yellow River Group believes that investing in public housing, given the current policies and costs, is almost certainly not profitable and may even result in a slight loss.

The idea of ​​these people in Pengcheng is that, if possible, they will be among the first to benefit.

He Yuzhu said, "Director Zhang, talent is the top priority for the development of the Special Economic Zone. A stable home is indeed a prerequisite for a fulfilling career. The Yellow River Group also needs talent if it wants to develop back in the mainland. We will also have relevant supporting facilities. If you want to know more, I can give you some information. We are willing to participate in the Pengcheng public housing project."

"That's great, you've solved a huge problem for me. What about the cooperation model? Is it the same as the Hong Kong government's?" Director Zhang asked.

He Yuzhu said, "The cooperation model is actually very flexible."

“Tell me more details, and we’ll make our selection,” Director Zhang said with a smile.

“We can advance the funding for construction, and the Special Economic Zone can repurchase the units in installments; or we can adopt a ‘construction on behalf’ model, where we are responsible for the entire process of planning, design, construction, and management, while the Special Economic Zone pays the construction costs and management fees. Of course, if you are not comfortable with this, we can start a pilot project first, for example, 500-1000 units. If you are satisfied, we will continue to cooperate; if not, we will purchase the pilot project for our own use,” He Yuzhu said.

"What's the longest possible buyback period? You know we don't have the money right now," Director Zhang said.

"I can only give you a maximum of ten years. As you know, the special economic zone is developing, so prices will rise in all aspects. Therefore, the price may have increased many times over in ten years. If I invest this money, the profit may be greater than the principal."

"That is indeed a problem. I would like to thank Mr. He for his optimism about the development of the special economic zone. Does Mr. He have any good solutions?"

“If possible, you can use other land use rights to repay this money,” He Yuzhu said.

"That's a good idea. It seems Mr. He really has high hopes for the Special Economic Zone."

"There's a place in the Special Economic Zone called Dapeng, so I think the Special Economic Zone could also be called Pengcheng, which will surely take off in the not-too-distant future."

"Clap clap clap clap!" The conference room erupted in applause.

"Then let's proceed with this plan. The specifics will depend on the project. Mr. He, is everything alright?"

"No problem. Hong Lang will be in charge of the real estate development. You can contact him directly if you have any questions in the future."

“Okay, Mr. He, I wish us a pleasant cooperation.” Director Zhang extended his hand.

"It's a pleasure to work with you." He Yuzhu extended his hand to shake hands.

After the meeting ended, Director Zhang spoke up again: "Mr. He, may I say something unrelated to this topic?"

"Director Zhang, please speak!"

Why didn't Mr. He invest in his two factories in Bao'an?

"this."

"What? Mr. He was very optimistic about Bao'an back then, so why did he turn around and switch to Xiangdu?" Director Zhang said, somewhat annoyed.

“This is not my fault. When we went to negotiate, the land they offered did not include any land in Bao’an,” He Yuzhu said.

"Oh, if only it had been earlier, we would have had two sizable companies. Now, all the taxes and jobs belong to others," Director Zhang lamented.

"Yes, yes!" the others echoed.

“There’s still a chance. We’re not just about cars and refrigerators,” He Yuzhu said with a smile.

"Then you must choose us next! We can offer you more favorable policies and help you clear away obstacles. I've heard about what happened in Xiangdu, but that definitely won't happen here. Don't you all agree?"

"Yes!" the accompanying cadres said in unison.

"Hahaha, great, the next one will definitely be in the Special Economic Zone!"

“It’s a deal!” Director Zhang extended his palm, and He Yuzhu gave him a high five.

Then he said, "Can I treat you to a meal today?"

"Sure, but the standards can't be too high!" Director Zhang said.

"They're all home-style dishes, just everyday fare!" He Yuzhu said with a smile.

"Let's go, I've heard that Mr. He has an incredible capacity for alcohol. We have a few other people here who can drink a lot too!"

"please!"

(End of this chapter)