As soon as this was said, the other directors also agreed with it and started discussing it.
"I understand your surprise."
Lin Huowang lowered his hand, glanced at the crowd, and took in everyone's reactions before slowly speaking, "But now everyone has seen that China's state-owned shipyards are capable of building giant 10,000-ton ships. So why can't state-owned steel mills produce construction steel that meets international standards? They have low costs, and their production capacity can be steadily expanded!"
As long as the materials are of good quality and low price, we don’t care whether they are from mainland China or elsewhere. As long as they meet our standards, who on earth should the people of Hong Kong Island have any say?
Importing construction materials from mainland China is the optimal supply chain solution for our Hong Kong real estate companies. This framework agreement in my hand is the result of urgent and confidential discussions with mainland China. Its core goal is to control costs and ensure supply!
The livelihood projects that His Excellency the Governor is pushing so hard for inherently require unconventional supply chain coordination. Mainland China has also expressed full understanding and support, which is one of the foundations for the project's success. As for the price, it was purely a commercial outcome negotiated through the economies of scale of bulk purchasing.
"What about the political risks? Our Hong Kong Land Group is a British-owned company. How could we possibly do business with mainland China? Although you, Mr. Xiaolin, are the Chairman of the Board, if we really want to follow your plan and import cheap construction materials from mainland China, I'm afraid we won't be able to get past the Governor first. The Hong Kong government won't allow Hong Kong Land Group to import large quantities of mainland materials."
Another British director launched an inquiry.
Lin Huowang nodded and replied, "This was indeed unsolvable in the past. The relationship between Hong Kong Island and the mainland was tense. Any company that did business with the mainland and had goods exchanges would be labeled "red" by the Hong Kong government, and all businesses in Hong Kong would be restricted in every way..."
At this point, Lin Huowang smiled and glanced at Fok Chun-ting next to him, "I believe Director Fok is very clear about this! But this time, our Hong Kong Land Group is representing the Hong Kong government's [Home Ownership Scheme] to discuss cooperation with the mainland on the supply of construction materials.
Do you think the Hong Kong government will oppose or support this? Just like Hong Kong Island's current fresh water supply, isn't it still supplied from mainland China? Do you think this makes a difference?
Since the Governor of Hong Kong has already approved the Home Ownership Scheme, he has already included our entire land holding company in the public welfare sector. We can also import cheap building materials from the mainland, just like we import fresh water, and naturally we can obtain political risk exemptions. Do you think there is any problem with this?"
Lin Huowang cleverly interpreted it from this perspective, and immediately all the confused directors present suddenly understood.
Before the directors could recover from the shock, Lin Huowang pointed to the second document, which was Document No. 3.
This is a combination of a map and an explanation, titled "Hong Kong Government's Special Support Program and Hong Kong Land's "New Community" Comprehensive Development Plan."
"Everyone, take a look at the plan. The land for 'Home Ownership for All' isn't the 'prime land' you imagine, acquired through bidding!"
Lin Huowang stood up and walked over to the map of Hong Kong Island in the conference room. Pointing to a key location, he said, "To fully support this plan, the Hong Kong government has specifically set aside several suitable plots of land that require comprehensive development to be exchanged for our Landmark Plaza. The largest of these plots..."
Lin Huowang pointed to a plot of land near the harbor, not in the core area but with great potential. "Right here! This will be the core site for our second large-scale residential community, 'Dragon Plaza'!"
"This project isn't solely about low-priced housing! To ensure the overall project's financial viability, Hong Kong Land will simultaneously develop and operate Dragon Plaza itself. This includes the large-scale community commercial center Dragon Plaza, the high-end boutique Dragon Court for the upper-class, and a waterfront themed experience zone integrating cultural and leisure activities."
"Hundreds of thousands of low- and middle-income families are moving into new communities, and they need a place to buy groceries, eat, and have jobs.
Dragon Plaza can provide jobs in retail, catering, and basic services; the waterfront theme area can attract families and tourists, and generate stable income from admission fees and derivatives;
Longteng Mansion is aimed at people who want to live better, and the rental returns are also considerable; more people live in the community and the supporting facilities are mature, which in turn can raise the value of the commercial center and high-end properties and guarantee the rent - this is a closed-loop business ecological chain!
The core residential properties will be sold promptly at cost to recover funds and support subsequent development; the supporting commercial and high-end properties will be sold or rented at market prices, and the profits will be the source of the 'above-average returns' we promised!
“This…this is simply…!”
A neutral director who had been silent until then pointed to the data on the financial model and said excitedly, "If we follow Mr. Xiaolin's idea of a closed-loop community ecosystem, and add mainland China's supply costs... and calculate the break-even point for the residential segment... it's actually feasible!"
The gross profit margins from the commercial and high-end properties are… my goodness, even more stable and higher than just luxury homes? This… this is a transformation blueprint tailor-made for Hong Kong Land!"
Lin Huowang's presentation and explanation were like a huge hammer, immediately smashing all of Huo Zhenting's carefully designed "doubts".
Use the mainland's stable and low-cost supply chain to solve the cost of building materials; use the Hong Kong government's special low-cost land to eliminate high land prices; and then use the long-term benefits of supporting businesses to feed back the entire project.
Guarantee both profitability and shareholder returns!
This model was so ingenious that it made the directors present, who were experienced in the business world, feel a tightness in their hearts.
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