Siheyuan, Me and the Yu Sisters
Chapter 471 Arrival at Hong Kong Island
As soon as Zhang Renkang and his party got off the boat, they saw Zhang Tingan and others waiting for them on the shore. This time, the port not only did not embarrass them, but even exempted them from security checks.
Zhang Ting'an brought two buses and a car. After everyone got on the bus, Zhang Ting'an and Zhang Renkang got on the car and drove from the port to the Huaguo Automobile Factory.
"The construction site has already built accommodation for us. Except for the inconvenience of getting water for showering, the power supply and other facilities are quite complete."
"The conditions are limited, please don't mind."
Zhang Tingan said with a smile that in the past month, he not only wandered between various forces in Hong Kong Island, but also took advantage of the Hong Kong Island government's cooperation. First, he used the funds of Lou Xiao'e and the Huo family to build two six-story accommodation and office buildings on the 100 acres of land allocated to them in Hong Kong Island. Otherwise, these dozens of people can't live in hotels every day, right? The country can't afford to support them.
Zhang Renkang laughed and responded to Zhang Tingan's joke:
"Director Zhang, we don't have a big hotel to stay in this time, but we have a place to stay in Hong Kong Island, which can be regarded as a home away from home."
"It seems that Director Zhang has been doing quite well in his work over the past month."
The two have worked together many times. Next, Zhang Renkang will be responsible for the work related to the Huaguo factory in Hong Kong Island, and Zhang Tingan will be transferred to the director of the security department. In name, he is responsible for the security work in the factory, but in fact he is still instructing the team in Hong Kong and paying close attention to it.
Hong Kong is different from mainland China. The biggest threat they face here is the erosion of Western ideas.
In less than ten minutes, Zhang Renkang saw a small hill. Zhang Tingan introduced
"The land allocated to us by Hong Kong Island is at the foot of the mountain, more than 110 acres, only four or five kilometers away from the port."
“The only bad thing is that the surrounding area is too desolate and not very popular.”
"The Huo family had to use a lot of connections to get the water and electricity."
"Otherwise, they won't even provide you with electricity."
Zhang Renkang nodded. This generation was probably the industrial area of Xingwang Road in Tuen Mun. It was close to the inland river terminal of Lung Kwu Tan. The location was pretty good, but it hadn’t started to develop at that time.
"As the population grows, I expect this generation to develop greatly in the next few years."
"Our one hundred acres of land may be worth a fortune in the future."
"The Hong Kong government has made a big move this time."
Zhang Renkang continued with a smile.
"How were your initial negotiations going?"
Zhang Ting'an shook his head. He brought the driver from the mainland. He was actually a person sent by a security department to take care of his safety. He was not afraid of leaks.
"Hong Kong Island's requirements are too high, requiring 45% of the dry shares"
"It's been a stalemate, and I don't see any signs of them compromising."
"Humph"
“45% is impossible”
"Lao Zhang, my expectation is that we will own 15% of the shares, Hong Kong Island will have a maximum of 60%, and the remaining % will be divided into two parts."
"Twenty of them will be used to win over the Chinese forces here, and the rest will be invested in the exchange."
Zhang Ting'an's face changed drastically when he heard this. Wouldn't it be easy for someone else to seize the dominant position in the factory with only 25% of the shares? He asked hurriedly.
"Comrade Renkang, isn't this too little?"
"According to the Western way of distributing equity, whoever has more equity has the final say in the factory."
"If someone takes over the factory's control, how will we explain it to the country?"
Zhang Tingan couldn't imagine what would happen to them. They would become criminals of the country.
Zhang Renkang shook his head and smiled
"Lao Zhang, I know you are anxious, but don't be anxious yet."
Zhang Tingan said anxiously
“How can I not be anxious?”
"This factory is going to be taken away,"
"Won't all our efforts be wasted?"
Zhang Renkang saw Zhang Tingan's anxious look and explained with a smile
“I intend to separate the dividend rights and management rights and sell the dividend shares in the form of stocks.”
"The method is that the shares of our factory purchased by the exchange can only enjoy the right to dividends at the end of the year, and have nothing to do with management rights."
"We have the right to purchase the shares issued by the exchange first, and before our factory gives up, shareholders holding our factory's dividend shares shall not trade them privately with external parties. Otherwise, we will not recognize their validity."
Zhang Tingan pondered for a moment, then slowly regained his composure and asked:
"You mean the stocks we trade can only be used for dividends, but not for other rights in the factory?"
Zhang Renkang nodded and smiled
"In a sense, this stock is also proof that they are shareholders of the factory."
“But when we issue shares, we only issue dividend shares.”
“Management shares are only used as management rights, but have no dividend effect.”
"So 100% of the management rights are still in our hands."
"However, this method can be used for a short period of time. Once China Automobile Group begins to demonstrate its potential and profitability, we will need to negotiate with multiple parties and redefine the plan."
"Our biggest problem now is that we lack sufficient funds to complete the construction before production."
“The purpose of issuing stocks is to raise funds.”
Zhang Tingan nodded and said
"A few days ago, I met with representatives of the Li and He families. Unless they share part of the profits, the management rights of our factory cannot be implemented in Hong Kong Island according to the domestic management method."
"Have you considered this aspect?"
Zhang Renkang laughed and asked
"Lao Zhang, I want to ask you"
“How many resources did we invest in building this factory?”
Zhang Tingan was a little confused, but still told the truth
"It's about 4.5 million yuan, but it's in our domestic currency."
"If you calculate it in Hong Kong Island, it's less than HK$1.2 million."
Zhang Renkang nodded and said
"According to my estimate, the entire Phase III project of the Huaguo Automobile Factory will cost about HK$10 million, not including equipment, etc., so the investment will be about HK$35 million."
"We spent more than 1.2 million yuan, most of which was spent on purchasing basic materials and food for staff in Guangdong Province."
"That is to say, we need to raise at least HK$15 million to complete the first phase of project construction and equipment procurement. Only after the products are put on the market and profitable can we have funds to continue operating."
"Old Zhang, do you think we can be considered to have gotten something for nothing?"
Zhang Ting'an nodded. He admired Zhang Renkang for this. Especially when there were no resources provided in China, Zhang Renkang could plan the outline of a large automobile manufacturing plant by himself. I'm afraid there are not many people in China who can do this.
Zhang Renkang continued to explain
"I had preliminary discussions with the Lou family and the Huo family last time. Both parties can pay no less than HK$2.4 million in exchange for 12 points of equity."
"The Hong Kong Island government used more than 110 acres of land to divide up 15 points of equity"
"We can account for 25% or even 20%."
"For the remaining, I will exchange 20 points at most for funds from other Chinese forces."
"Lao Zhang, they are all smart people. You see the money, but they see life and more money in the future."
Zhang Renkang looked at the construction site outside the car window. The two accommodation buildings Zhang Ting'an mentioned were actually just the main structure of one building that had been completed and equipped with certain living supplies. It was basically habitable.
The rest is just steel, cement and a busy construction site.
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