Chapter 320: Building a City
This is another plan of Wang Yuanchao.

He bought a lot of land in the countryside of Yuen Long.

To the north of Yuen Long is the largest plain in Hong Kong, the Yuen Long Plain.

About 20 acres of land, 144 square kilometers.

If you go to Shenzhen in the 21st century and stand on a high building and look towards the Hong Kong River, you will see that the New Territories are full of wasteland.

At the beginning, John's administration intended to create a buffer zone with the mainland, and the New Territories were leased and might have to be returned at the end of the term, so they were unwilling to develop the New Territories.

Even the landfills and cemeteries are placed here.

Investors also have the same concerns as John's administration, worrying that the situation will change and they will lose all their money.

So the investment is not beyond Lion Rock.

Later, as the population pressure in Hong Kong Island and Kowloon became too great, the authorities developed some new towns in the New Territories, but they were also very stingy.

After the return, when people wanted to develop this area, they were opposed by a large number of citizens who already own houses, real estate developers, and environmental protection organizations, resulting in a waste of the great land here.

Later on, who would have thought that Pengcheng would actually surpass Hong Kong and it could no longer bring itself to develop this area.

When Wang Yuanchao sneaked into the country, he was locked up in a small dark room here.

Moreover, land in the countryside is very cheap and is purchased by the acre.

When Wang Yuanchao first purchased the land, it was only a few hundred yuan per acre. Yes, it was that cheap.

Because Bao'an is just across the street and the land in the mainland is not privately owned, some people come to buy it and many villagers are willing to sell it. If it is really taken away, there will be nothing left, right?

Later, the situation gradually stabilized and the price slowly increased to about 1,000 yuan per mu.

Some villagers are unwilling to sell because they would not be able to make a living if they did.

Wang Yuanchao even had to exchange some of the factory's recruitment quotas for it.

If the above methods don't work, a large number of community members will be busy. If they help Wang Yuanchao to take down the remaining stubborn households, they will be rewarded.

In this kind of countryside, even the police don't come. How powerful can the clan be? How can such a small countryside defeat the gang members?

Even if they can't win by fighting, they are soft-hearted. The gang members won't kill anyone. They may accidentally steal your chickens and ducks, burn your house, or beat you up if there is a conflict. Anyway, as long as no one is killed, they have plenty of ways to disgust you and make you defenseless.

Does Wang Yuanchao know?
know!

But that doesn't stop him from continuing to acquire.

Over the past two years, he has accumulated more than 20,000 acres of land.

The largest piece of land is as large as 1.5 acres or 10 square kilometers!

The whole piece of land belongs to him! There is no stubborn person in it!

Not only the plain, he also bought two hills nearby. The mountains are not only larger in area but also cheaper.

However, no bank was willing to mortgage the land and hilltop worth over 2000 million yuan.

This is the New Territories! Concession! What does rent mean? Renting means it’s not yours!

What if it is suddenly confiscated?
This is the sword of Damocles hanging over your head!

Otherwise, why hasn't anyone come to take over the land here?
Only Wang Yuanchao knew that it had not been taken back until he traveled through time.

So I can only hoard them.

Although this is a huge waste of cash flow, it will not be easy to acquire such a large area of ​​land in the future.

Wang Yuanchao planned to take out some scraps and sell them to the cement factory to make some money back.

The cement plant is a labor-intensive, resource-intensive, high-energy-consuming and high-pollution industry.

Not to mention the labor-intensive industry, the community can directly recruit a large number of laborers. The population of Hong Kong increases by 10 every year, so there is no shortage of labor. Moreover, there are a large number of villagers in Yuen Long who can be dispatched. If you want to enter the factory, you have to sell land. Kill two birds with one stone! In the end, Wang Yuanchao still has his eyes on other people's land.

It is resource-intensive. The raw material is limestone. Hong Kong is rich in marble, such as the hilltop that Wang Yuanchao bought. Limestone has always been purchased from the mainland, which has abundant resources in this regard. It can be exported to earn foreign exchange and can even be bartered for goods (cement) (limestone). Shipping is very convenient, so there are no major problems on the mainland.

The Tsing Yi oil-fired power plant, a joint venture between the Kadoorie family and ExxonMobil, has a capacity of 1520 megawatts and will be fully operational this year. The expansion of the cement plant can help digest the redundant electricity, and perhaps we can negotiate a preferential price.

I won’t mention the high pollution. What era is this? There is still a cement factory in Kowloon, not to mention the new factory is located in Yuen Long, which is the countryside!

As for the transportation problem, we can just build a pier on the seashore. Shipping is more convenient and efficient than any other method, and it is not a problem to set up a small fleet behind it.

Compared with other heavy industries, cement plants require relatively less fixed asset investment and are more like light asset industries.

Will the cement factory follow Wang Yuanchao’s wishes?

Wang Yuanchao talked to General Manager Rock!

Isn't it natural for the chairman of the board to communicate with the general manager about work?

Wang Yuanchao was very direct and asked Rock if he wanted to continue to hold the position of general manager.

The requirements are simple: just be obedient.

As for everyone's worry, whether the company will be confiscated over there, such a distant thing, what does it have to do with the company's management?

Even if we take a step back, the investment in the second factory is all from the company's profits and shareholders' contributions, and Rock doesn't have to pay a penny, and he can still get his salary.

However, if the second factory goes into production quickly and the profits increase significantly, Wang Yuanchao promised that he would push the board of directors to give Rock a 0.5% dry stock dividend.

It is true that Rock is a professional manager recruited by Carl, but Carl has never been so generous!
Carl just needs Rock to protect Carl's own interests!

But Wang Yuanchao is willing to make empty promises!

Although the cement plant's products are in short supply, it's a pity that Rock is on a fixed salary, so what does it have to do with the management to expand production? Rock has no motivation to promote the expansion. But now, the new chairman of the board has made it clear that if you do a good job, you will get carrots, but if you don't do a good job, you will be punished with a big stick and find another job.

How to choose?
Do I still need to choose?

Rock said calmly and righteously:
"I will follow your instructions, Chairman, to complete the expansion plan for the second plant!"

Wang Yuanchao smiled and handed over a set of materials that had been prepared long ago, saying:
“The board looks forward to your proposal!”

……

The new plan was quickly submitted to the board of directors.

“Shit, how can you build a factory over there?
Is this a question of whether the land is cheap or not?
That's the concession, the concession! Besides, it's so close to the other side, a shell will hit it!"

The third shareholder, Ben, cried out in pain when he saw the plan.

Carl, the second largest shareholder, frowned. Why did Rock submit such a plan? The biggest problem was what Ben just said, there was too much uncertainty!

The authorities are reclaiming land in Tuen Mun and Tsuen Wan. It’s just a matter of spending a little more money and time!

Compared with this huge uncertainty, what are the little cost and time saved on land compared to this huge uncertainty?

Everyone is investing to build a long-term business!

What's wrong with Rock? Didn't he listen to me? I clearly told him that he had plenty of money, so why was he so stingy with the land cost?

He glanced at Rock, who was sitting there steadily, not saying a word.

Carl asked:

"Rock, how do you consider stability? As an entrepreneur, we fear instability the most."

Rock now spoke:
“Because we did a market assessment.

According to Hong Kong's consumer market, even if the second plant has twice the production capacity of the first plant, with a daily production capacity of 5000 tons, Hong Kong can fully absorb it.

Such a large production capacity will require a huge amount of factory space.

As we all know, cement factories are highly polluting industries. Since the government established the Civil Affairs Department in 68, it has received a large number of complaints from surrounding residents about pollution from cement factories.

We would like to expand further, but we will definitely not be able to obtain government permission in Sham Shui Po and Tsuen Wan.

The Tuen Mun reclamation project has just begun and it will take at least two years for us to win the bid, reclaim the land and build the factory.

But in Yuen Long, if we conduct careful investigation and carry out factory construction and equipment procurement simultaneously, we can start production in half a year.

In 67, with such a huge advantage, the other side did not even cross the river! Now the relationship between the mainland and the North Country is very tense. Last month, the two sides had several conflicts on Zhenbao Island. It is impossible to provoke the North Country and John Country at the same time.

Therefore, in the next few years, the second factory will be very stable.

As long as we persist for two years, the shareholders’ investment will be recovered within two years.

Every year thereafter will bring huge returns to all shareholders!
With such a high return on investment, we have made a comprehensive and prudent judgment and decided that this option is the most feasible one at the moment.

Here is the investment plan for Tuen Mun and Tai Po. Compared with Yuen Long, both the capital cost and the time cost are much higher.

And strictly speaking, they all belong to the New Territories..."

What this sentence means is that if the other side really comes, it will be useless no matter where you go.

It’s better to be cheaper and make money quickly.

Rock distributed other materials to the directors.

hiss--

Everyone in the conference room exclaimed in amazement.

In short, there is no chance in Kowloon. As for the New Territories, there is not much difference between Yuen Long in the north and Tuen Mun and Tai Po in the south. The only thing to do is to race against time!

And with such high profits, it is not impossible to take a chance

Wang Yuanchao spoke moderately, combining the opinions of both sides and said:
"The opinions of Director Karl and this Director are not without reason. And General Manager Rock's plan is indeed very tempting. How about we carry out both plans at the same time?
The Yuen Long plant is responsible for rapid production, while the Tuen Mun plant is responsible for stable revenue. How do you think that is?"

Rock has already said that they are all new territories! Moreover, investing in two branches at the same time is too much for some of these directors.

So someone said:
"The chairman's opinion makes sense. Why don't we follow General Manager Rock's advice and start production in Yuen Long first? If the benefits are good, we can invest in Tuen Mun or somewhere else later."

Well, the director's opinion was compromised again.

After many compromises, Rock's plan for the second factory in Yuen Long was successfully passed. Not only did the small shareholders not get dividends, they had to inject capital, otherwise their shares would be diluted.

Will the New Territories authorities agree to set up a factory in Yuen Long?

Why don't you agree?

There are only a few factories in this remote and poor area of ​​the New Territories, and we can’t even collect taxes!
The cement factory in Sham Shui Po has nothing to do with the New Territories.

As for whether it is safe or not, it is the businessmen’s money, not the authorities’ money. Besides, isn’t there Pengcheng Bay in between?
Will the big chimney irritate the other side?

Just like Rock said, the situation across the country and in the North is tense and they can't take care of this side.

Anyway, it won't hinder the New Territories authorities from collecting taxes. As for future matters, we'll talk about it later.

Moreover, the cement factory has promised to recruit workers in the New Territories. Isn't this a better service for the local residents of the New Territories? They no longer have to go to Hong Kong Island and Kowloon to work, right?

This is the current situation of the Hong Kong authorities. They have no long-term plans because they don’t know how long they will last.

(End of this chapter)