Spring Breeze Twenty Years

Chapter 550 Do what you know, not what you don't.

Xiao Wei licked his lips and said with a smile to Chen Hui and Xia Maosheng, "I think we've expanded our operations a bit too much."

Chen Hui said, "Making money is fine. These two companies can just be set up here. They can do things when there's work to be done, but they don't need to do anything special. The real estate development was your request, Xiaowei, so you can arrange that. As for the department store, I was thinking about it the other day. If the building we buy is too big, we can just demolish it and rent it out. We don't need to source and sell goods ourselves. We can just tidy it up like an underground shopping mall and rent it out."

Xiao Wei said, "The real estate development company is doing this for convenience, so I'll handle it. Just assign me five or six people to run errands for now. My main tasks right now are dealing with the land plots at the Xingcheng Longcheng headquarters, and also the police station."

I feel that the police station can still profit from this. We can build a multi-purpose building for them and then use the remaining land. Although it seems like we're losing out at first glance, I've calculated that the profit margin is quite large.

Police stations are usually located in the center of the area. This is the result of investigation and research by the Public Security Bureau. Moreover, we may not be able to buy land in those places even if we want to.

That day, Dean Cheng mentioned the issue of branding to me, and I thought he made a good point. If we could cooperate with more police stations, we could say that our brand has been established.

I won't go into the residential sales; what I value more are the three storefronts. Following the police station's lead, we don't even need to plan anything ourselves. All our storefronts are centrally located on the small plot. Whether we use them to attract tenants as a department store or rent them out individually, they should do well in the future. Plus, they come with their own emergency call point.

Chen Hui asked, "How much does it cost to build? I heard you mention it today, over three million for one building?"

Xiao Wei shook his head and said, "No, I was just talking nonsense. There are basically no other costs for us to do this. The municipal infrastructure is also coordinated by the Public Security Bureau, and they will definitely pay the taxes. I estimate that the whole thing should cost around two million."

Chen Hui pouted and said, "I still feel like I'm getting ripped off. It's not even in the central business district, and the land isn't worth much. A few tens of thousands of yuan per acre is nothing."

Xiao Wei said, "First, you have to be able to buy it. Then there's the relocation, land costs, major municipal infrastructure, water, electricity, and gas installation, taxes, and all sorts of approvals. Just the time and money involved in all these things is enough to give you a headache. This is so much easier. The land is already there, and we don't have to worry about any fees or procedures. Once the houses are built, we sell them, and we manage the three floors ourselves."

Xia Maosheng said, "Once we're done, we'll become the most outstanding advanced unit in the joint construction between the police and the people of Fengtian. The entire public security system will have to appreciate our efforts. I think that whether we sign the name or not, we'll make money."

Xiao Wei nodded and said, "It's mainly to save us trouble. We're not doing this as a profession, as long as we can make money, that's fine. Later, when we've made a name for ourselves and have more capital, we can seriously buy land and develop. I feel this area should have good prospects. I've roughly calculated that after we finish this one place in Jixian, we should be able to make 20 to 30 million, and there are still those storefronts. This was originally just a side project."

Chen Hui blinked and exclaimed, "Damn, they can earn that much? What's the point of running a food factory then? We might as well just buy land and build houses!"

Xiao Wei shook his head and said, "There are plenty of ways to make money. If that's what you're saying, there are even more lucrative businesses than building houses. Just do whatever you want!"

Chen Hui asked, "What earns more than building houses?"

Xiao Wei glanced at Chen Hui and said, "Open a bank. Robbing a bank is fine too."

Chen Hui quieted down, scratched his hair, and remained silent.

Xiao Wei said, "We need to think long-term. Food factories and restaurants are currently the things we are most familiar with and most confident in, so we can't give them up no matter what. We should stick to what we know and not do what we don't know. No matter how things change in the future, there will always be a market for food, and if we do both well, we can make money."

As for other things, we'll do them if we have the opportunity, but we don't need to force it if we don't. What do you think?

It's like building a house. The police station is an opportunity for us. If they're willing, we'll do it. There are so many police stations, enough for us to work for a few years. Nobody knows what will happen in the future. None of us are particularly familiar with this line of work. Let's take it one step at a time and see how it goes once we're more experienced. Is that okay?

On the other hand, building houses won't affect our restaurant and food factory operations. Wouldn't we earn more if we did it together?

Geng Hui said, "I feel that building a house is just a matter of having land. The design institute will provide the blueprints, and the construction company will handle the building. We just contribute money, so it doesn't really interfere with anything else."

Xiao Wei said, "We need to set up a sales department later. Once the houses are built, we need to sell them. Xiao Hui and Lao Xia, you two should go to the riverside area when you have time and see how they do it. Learn about the procedures and processes involved. They're professionals in this field, so they're definitely better than us."

Chen Hui and Xia Maosheng both nodded.

Xiao Wei said, "Right now, we have food factories, restaurants, cake shops, department stores, feed companies, and real estate development. Let's not talk about the food factories and restaurants. How do we handle the department stores and real estate development? Also, which company should we include the cost of buying buildings in?"

Chen Hui said, "We'll split the department store profits equally among the three of us. Xiao Wei, you get thirty-four, and Lao Xia and I get thirty-three. You take half of the real estate company, and Lao Xia and I each get twenty-five. You were the one who arranged this, so we're just along for the ride. Can we really make twenty or thirty million?"

Xiao Wei nodded and said, "Really."

Chen Hui did the math and said, "Then Lao Xia and I will each have six or seven million. This money really fell from the sky. Thank God, thank the Jade Emperor, thank the Party and the people, and thank Comrade Zhang Wei for being blessed by the God of Wealth. I've decided, I'll treat you all to dinner when this money comes in." Everyone scoffed and gave him a look of disdain.

Xiao Wei said, "Let's split the real estate profits equally too; I've taken too much."

Chen Hui said, "No, stop messing around. What would Lao Xia and I be like if we took too much money? Besides, that's what I filled in when I registered, it's already legal."

Geng Hui said, "Chen Hui, tell me the shareholding percentage of each company, and I'll write it down."

Chen Hui said, "The department stores and real estate go without saying, right? At the food factory, Xiao Wei gets 60, Lao Xia gets 40, and I don't get any. At the restaurant, I get 50, Xiao Wei gets 30, An Lao Wu gets 20, and Lao Xia doesn't get any. At the cake shop, Xiao Wei gets 60, I get 25, and Lao Xia gets 15. At the feed factory, the three of us get 20 each, and Liu Hongliang gets 40. The school belongs to the food factory, so I don't get any."

Geng Hui noted it down, nodded, and asked, "So how does the head office handle this? Shouldn't it be registered for the three of you? And what about the issue Xiao Wei mentioned earlier—how will the investment and ownership of the purchased building and other fixed assets be determined?"

(End of this chapter)