Spring Breeze Twenty Years

Chapter 1274 The Auction Fails

Liang Gaoyou then produced another document: "This is the statistic I compiled. Most of the transactions here involve land swaps, with direct investment accounting for only one-third. They are all companies from other regions. Tianhe Fulaiyi is the largest case, with an investment of several hundred million yuan, mainly used for road construction."

Xiao Wei took the document and looked it over. Liang Gaoyou said, "I spent some money to find out from the side that the leader of the local land bureau said that it was possible to issue the certificate, but it required construction to be carried out with the person he designated, and he put forward a bunch of conditions."

The conditions he proposed were somewhat harsh, essentially meaning he was getting money for nothing. Therefore, some well-established companies disagreed, and that was the end of it. Those who agreed to cooperate proceeded with construction and use as planned, even though they had to concede some profits.

Those who disagreed were simply stopped; you can't really find fault with the official procedures, they're all guaranteed to be reasonable and legal, and nobody can do anything about it. If this drags on, the investors will definitely suffer.

Chen Hui said, "Damn, this is blatant robbery! No wonder this place is developing so slowly. Logically speaking, it shouldn't be like this now."

Liang Gaoyou said, "I found a case where the government put a dozen acres of land that had already been put into use out for bidding again. All the original investors lost their money, and even going to the provincial government didn't help."

Initially, it was indeed ordered to stop, but then, I don't know how the other party did it, provincial leaders gave approval, and all the original investors' investments were scrapped. Now the lawsuit has gone all the way to Beijing.

Xiao Wei put down the documents and looked at Chen Hui: "This feels a bit unbelievable. Shall we still proceed?"

Liang Gaoyou said, "This kind of thing is not an isolated case; it has happened quite a few times already—land being tendered twice. I think we still need to be cautious."

Chen Hui laughed and said, "Everyone says it's hard to get things done in Northeast China, you have to pull strings everywhere. It's even more ruthless here. You don't need to pull strings, they just openly rob you."

Liang Gaoyou said, "There are plans to put the unfinished projects up for auction here. This is a decision and arrangement made by the province, but in fact there has been no public announcement. At least I haven't heard any news about this from any source during this period."

Xiao Wei asked, "How's the auction in Haikou going? Have the results been announced yet?"

Liang Gao nodded slightly: "It's out. A total of five projects were auctioned this time, and all of them failed to sell. I analyzed the reasons. On the one hand, the entire real estate market here is weak right now, and everyone is watching and waiting, not daring to enter the market easily."

Secondly, the starting bid was set too high. Looking at the current industry analysis of the entire island, both land and construction prices have plummeted, and the outlook is not very optimistic; more investment means more risk.

My analysis is that the province will continue the auctions, and the price will drop further. At that point, we might consider getting involved. After all, we're not acquiring it for resale, so market conditions won't have a significant impact on us.

Xiao Wei asked, "Do you think it's appropriate for our shopping mall and hotel to move in now?"

A food factory could be built there, but that involves investment. I'm considering building it in Haikou; it's generally better than other places, after all, it's where the provincial capital is located.

Chen Hui asked, "Brother Liang, do you think it's a good idea for us to start this resort hotel/mountain resort?"

Liang Gaoyou smiled and said, "You're asking me some professional questions, but I don't know much about business operations. However, this area falls under tourism, and I think the operation depends entirely on the source of tourists, not on the specific situation here. As long as it's well-guided in the mainland, there shouldn't be any major problems."

Xiao Wei said, "I feel that this mainly depends on promotion. We need to set up booths in major cities across the country and carry out relevant promotions. The customer base should still be guaranteed. Now that people's lives are more affluent, more and more people are coming out to have fun."

I did a rough calculation. Based on the current scale of the plan, as long as we can guarantee a flow of more than 200 people per day, we won't lose money. If we can accommodate 500 people, we'll make a profit. Two or three thousand people a month is nothing compared to the national average.

Chen Hui said, "Five hundred people a day, wouldn't that be fifteen thousand a month?"

Xiao Wei said, "You're only staying at my house for one day? It'll take at least three to five days. So there has to be a beach and a pier so we can do some water sports. We can't just stay at the beach playing in the water and having a meal."

Chen Hui said, "Speedboats, cruise ships, to go for a spin in the sea, fish or something. Can we go diving here?"

Xiao Wei nodded: "We also need to develop onshore entertainment. Not everyone likes going to the sea; we need to have food and fun. Resorts like the one in Zhijin can only be run by the government; if we tried to do something like that, we'd go bankrupt."

Chen Hui said, "Of course, they're not doing this to make money. Look at Beidaihe, it's the same there. If private businesses were doing this, they would have closed down long ago."

Xiao Wei thought for a moment and said, "Should we go to QHD again? I heard that Nandaihe is developing quite well now, it's like a golden coast. Let's go and see what we can learn."

Chen Hui shook his head: "Let the men go. By the way, let Brother Liang take some men. I've noticed that Brother Liang has a sharp eye; he can spot a lot of things we miss. How about it, Brother Liang, a two-week trip to Nandaihe on public funds?"

Liang Gao said, "Half a month is not enough. Beidaihe, Nandaihe, Dalian and Meigouying are all in the north, and there are still big differences between them and this place. If you want to see, there are many places along the southern coast that are doing well, such as Hong Kong, Xiamen, Shantou and Shanwei. You should go and take a look."

Xiao Wei said, "Sure, you can manage the time yourself. This isn't something that can be done in just a day or two, so you can take a tour with your people and take a good look at the seaside tourism, entertainment, and hotel management, and take lots of photos."

I was originally planning to go for a walk, but Xiao Hong is about to give birth, so I can't go. How about you and Brother Liang go for a walk together, Chen Hui?

Chen Hui shook his head: "Forget it, Liang Ge can go. There will be plenty of opportunities to go shopping in the future. I'd rather spend more time with my parents this year."

Wu Guolin and his group walked in: "What are you talking about?"

Xiao Wei said, "Let's talk about the investment. There's a bit of a problem here. Let's go downstairs and find a place to eat, we can talk while we eat. Where did you guys go?"

Wu Guolin, Liu Jiaming, Wang Lihua, and Du An'an were not going to stay put and study the documents and plans. After all, they were just small shareholders making money. They were in the right positions, but they were just in charge of eating, drinking, and having fun.

Wu Guolin lit one of Xiao Wei's cigarettes and said, "I stayed at the beach, near the Zhijin Resort, for a while."

(End of this chapter)