I See through Everything

"So, how much is the land transfer fee?"

Luo Heguang was clearly prepared. "According to the letter of intent signed with the previous real estate company, the land transfer fee is 1,254 yuan per square meter. If General Manager Jiang is interested..."

"No need. We’ll go with that price," Jiang Miao cut in, interrupting what Luo Heguang was about to say.

’Although he could have gotten a lower price, Jiang Miao didn’t want to create any potential problems for himself down the line.’

Hearing that Jiang Miao was willing to take over at the original price, Luo Heguang said no more. After all, what he had been about to suggest could easily become a black mark on his record if someone found out.

Seeing how decisive Jiang Miao was, Luo Heguang struck while the iron was hot and began to detail the specifics of the plot of land.

The plot was sizable, covering approximately 213 mu, which is 141,858 square meters. This meant the land transfer fee would amount to 177,889,932 yuan.

If it were developed as a Type II residential area (mid-to-high-rise buildings), the maximum building density would be 35%, with a height limit of nine stories. The total floor area would be approximately 470,000 square meters.

For real estate in the local townships, the average all-inclusive cost per square meter is around 3,000 yuan, a figure that includes the land transfer fee. Therefore, the total cost for 470,000 square meters would be roughly 1.41 billion yuan.

This investment wasn’t impossible for the current Hailufeng Company, but it would compromise the security of its cash flow.

The company’s total revenue for June was 157.36 million yuan. Currently, it had 863.71 million yuan in liquid capital, along with gold and silver valued at 120 million yuan, and raw jadeite materials worth approximately 130 million yuan.

Moving forward, the average monthly gross profit was projected to increase at a near-daily rate.

In other words, barring any unforeseen circumstances, Hailufeng Company was on track to achieve a gross profit of around 2.2 billion yuan in 2025.

This was thanks to Hailufeng Company’s rapidly expanding eel fry production. By August, production capacity would increase to around 120 million eel fry, and by October, it would reach its maximum scale of 180 million.

This also factored in the launch of the Yandun Mountain Feed Factory, the new Ginseng Fruit and Tomato crops from Nanhu Farm, the new frozen fish balls from the Magong Canned Food Factory, and the gold and silver jewelry and jadeite products from the Meilong Gold and Silver Processing Plant.

Although the gross profits from these ventures couldn’t compare to the eel fry business, they would all contribute significantly to the company’s revenue.

If everything went according to plan, Hailufeng Company would become one of the top five corporations in Shanmei City this year, ranking just behind Xinli International and the Tobacco Shantou Branch.

’While investing 1.41 billion yuan to develop a residential complex would put some pressure on the company’s cash flow, it wouldn’t be overwhelming.’

’As for loans, the major banks are currently cautious about lending for real estate development. It would be even harder to secure financing since his real estate company was a sole proprietorship.’

’But Jiang Miao wasn’t concerned. After all, you eat a meal one bite at a time, and a real estate project could be developed in phases: Phase One, Phase Two, Phase Three, etc.’

’Therefore, he planned to develop only about 50 mu in the first phase, holding the rest of the land in reserve. In any case, once the houses were built, they would be offered to company employees first.’

After settling the matter of the idle plot in Xinxiang Village near the Cheung Sha Wan Highway Entrance.

Jiang Miao then asked Luo Heguang, "Mayor Luo, I’m planning to build a new office building at the intersection of Xinxiang Road and Shanma Avenue in Magong Town. I was wondering if the town government could help me out with that?"

Luo Heguang thought for a moment before placing the location. "There? You mean across the road from the idle plot?"

"That’s the one. Right across from the idle plot," Jiang Miao confirmed with a nod.

"The flat area there isn’t very large. You must be planning to include the mountain behind it, right?"

"Yes. I’m looking for a plot of land totaling 100 mu."

Luo Heguang didn’t agree immediately. "I can help inquire with the land resources department, but it should be straightforward. If it’s just for a commercial office building, the land transfer fee in that area should be around 500 yuan per square meter."

"That works for me. I’ll have to trouble you then, Mayor Luo."

"Think nothing of it. Hailufeng Company is Magong Town’s flagship enterprise. Of course, the town government will give you our full support," Luo Heguang said with a smile.

He wasn’t just spouting platitudes.

Hailufeng Company’s position in Magong Town was indeed growing in importance. The current macroeconomic environment was poor, and for a city like Shanmei—which was at the bottom of the third-tier cities—the economy was in an even more difficult state.

As a member of the town’s leadership, Luo Heguang was under immense pressure. Many grassroots-level government employees had faced significant pay cuts, and the township level, in particular, bore the brunt of it.

Land transfer fees and real estate taxes accounted for a very high proportion of local government revenue, often making up 50 to 60 percent.

The real estate situation in Shanmei these past few years could be summed up in a single phrase: half-dead.

That was why no local official would refuse Hailufeng Company’s offer to invest in real estate and build residential and office buildings.

’However, Jiang Miao knew that land acquisition didn’t just involve the officials; it also involved the villagers who lived on the land.’

’His reason for choosing that particular plot at the intersection was simple: the land belonged to villagers from the third, sixth, and seventh branches of the Jiang Clan in Xinxiang.’

’And Jiang Miao’s own family was part of the third branch.’

’As for the other two branches, the sixth was also easy to handle. Years ago, his younger uncle, Jiang Dahe, had been adopted by a granduncle from the sixth branch. Although his uncle now lived on the Xiangjiang River, he still held influence there and could be asked to persuade them.’

’The seventh branch was headed by Jiang Dalong, the current village chief of Xinxiang. As long as he wanted to be re-elected for the next term, he certainly wouldn’t go looking for trouble.’