Siheyuan: My wife is Xu Huizhen

Chapter 664

At this moment, He Yuzhu seemed to have traveled to the future and witnessed in advance the brilliant moment when he would stand proudly at the pinnacle of wealth.

He was wearing a gorgeous tailor-made suit made of fine fabrics and exquisite tailoring, with every detail showing nobility and luxury.

At the grand banquet with bright lights, people gathered around, looked at him with admiration and offered their sincere congratulations.

In his heart, lofty ambitions surged like a blazing fire. He had infinite longing and expectation for the future journey that was about to begin, and firmly believed that the road ahead would be full of flowers and brilliant achievements.

However, market changes are always unpredictable, just like the weather in June, changing at any time.

In Tuen Mun, when the 800 houses were sold out as quickly as snow melting in spring, the company's market research team immediately launched an in-depth and detailed investigation.

They are like keen hunters, not missing any details, walking through the streets and alleys, visiting countless potential customers and industry experts.

The survey results were shocking. It turned out that there were no longer enough customers in the area who were able and willing to purchase the properties launched by the company.

This phenomenon shows that the company's previous sales strategy was very effective and has successfully attracted all customers in Tuen Mun and Yuen Long districts who have the ability to buy houses and have real housing needs.

Although the Tuen Mun area is very lively on weekdays, with crowds of people on the streets and alleys, it shows its prosperity.

But a closer look reveals that the remaining people are not the potential main buyers of houses.

Some of them have already taken deep roots in their existing living environment. They greet each other with familiar neighbors every day and have deep friendships. The daily living facilities are convenient and easy to use, and have become an indispensable part of their lives. This comfort zone makes them have no intention of changing houses.

Others, while eager to improve their living conditions, are helplessly trapped by their limited financial resources. Faced with sky-high housing prices, they can only sigh in frustration and lament.

To sum up, the company's real estate in Tuen Mun is like sowing seeds on dry, cracked land that has not seen rain for a long time. Even if more effort is invested, it is difficult to reap a good harvest, and the market prospects are already bleak.

Faced with such a serious situation, the atmosphere in the conference room was so depressing that it was suffocating.

Manager Ma Dezhong sat at the conference table, his fingers tapping unconsciously. During a high-level meeting, he slowly raised his head, his expression solemn and somewhat apprehensive. He asked his boss, who sat at the head of the table, "Boss, the Tuen Mun and Yuen Long markets are already saturated, with a massive backlog of properties, making sales difficult. Given this, should we continue with the massive housing construction program?"

The question he raised was not a spur-of-the-moment one, but was raised carefully after repeated research on market data over many days, in-depth analysis of the company's business status, and based on careful consideration of the company's business development.

At this moment, his brows were tightly knitted together, forming a deep "川" character, and his eyes revealed a trace of deep worry. After all, the future development direction of the company is like the direction of a huge ship sailing in the vast ocean, which concerns the vital interests of every employee. Any decision may affect the entire body. The slightest mistake may put the company into an irretrievable situation.

However, He Yuzhu responded with a rhetorical question: "Who will we sell it to after we build it?"

This question was like a blow to the head, leaving Manager Ma Dezhong speechless for a moment.

He opened his mouth, but his throat seemed to be choked by something and he didn't know how to answer.

Because deep down he also realized that under the current market conditions, continuing to build houses might not be a wise choice.

The market is already saturated. Blindly investing large amounts of money, manpower and material resources in construction will only result in serious waste of resources and bring a heavy burden to the company.

Mr. Ho further explained, "Based on my observations and analysis, in the past three to five years, the demand for housing in both Tuen Mun and Yuen Long has been fully met. Therefore, we need to consider two directions to promote the company's development."

He stood up straight, his voice calm and firm, as if he had planned a clear and feasible path for the company's future, giving everyone present a reassurance.

The first direction focuses on expansion in other locations, that is, purchasing land in other regions to carry out real estate development projects.

Through comprehensive and in-depth market research, we can accurately locate potential areas that have not yet been fully developed but have extremely strong demand for housing.

For example, on the other side of the city, there may be a piece of land that has not yet received widespread attention from the public. The surrounding transportation network is gradually improving, the bus routes are becoming increasingly dense, and it is only a few hundred meters away from the planned subway station.

At the same time, surrounding education, medical care, commercial and other supporting facilities are also being constructed in an orderly manner. Projects such as large shopping malls, high-quality schools, and community hospitals have been included in the local government's short-term plans.

This piece of land is like an uncut gem, quietly waiting for a visionary developer to discover it. Through careful planning and construction, it will be given new value and vigorous vitality, attracting a large number of potential customers who are eager to improve their living environment.

The other direction focuses on deepening and expanding existing housing demand.

In terms of marketing strategies, a series of attractive preferential policies can be flexibly introduced.

For example, the down payment ratio can be significantly reduced from the traditional 30% to 20%, and even further reduced to 15% for some high-quality customers or specific housing types, which will greatly reduce the initial financial pressure on home buyers; provide considerable housing purchase subsidies, give a certain proportion of cash subsidies based on the area or total price of the house, and directly reduce the cost of buying a house; reasonably extend the loan term from the conventional 30 years to 35 years or even 40 years, effectively diluting the monthly repayment amount.

In terms of improving product quality, we select higher-quality, environmentally friendly and durable building materials, and strictly control everything from exterior wall insulation materials to interior decoration materials; we carefully optimize the house layout design, fully consider the rationality of space utilization and living comfort, and create a house layout with north-south transparency and reasonable dynamic and static zoning; we vigorously improve the property service level of the community, increase the frequency of security patrols, introduce intelligent security systems, optimize the green landscape of the community, and regularly organize community activities to create a warm, comfortable and safe living atmosphere for the owners.

Through the above multi-dimensional measures, the purchasing desire of potential customers is stimulated in all aspects, and those customers who were originally hesitant in making a home purchase decision are prompted to make up their minds and purchase the property they like.

At this time, turning our attention to other areas of Hong Kong, whether it is the vibrant Kwun Tong, the bustling Mong Kok, or the Kowloon with a strong commercial atmosphere, large-scale construction work is being carried out.

As you step into these areas, the roar of machines comes like a tide, continuously hitting your eardrums.

The demolition team worked in an orderly manner. Under the action of powerful machinery, the old building collapsed heavily to the ground with a loud bang, raising a sky full of dust, like a gray cloud that lingered for a long time.

And on top of these ruins, new residential buildings are springing up as rapidly as bamboo shoots after rain.

The exterior design of these new buildings is sleek and modern, with smooth and clean lines, highlighting a unique architectural style.

Under the bright sunshine, the large glass curtain wall reflects dazzling light, like a mirror, reflecting the surrounding scenery, while also exuding a strong modern atmosphere.

This construction boom can be seen everywhere in Hong Kong, with new buildings being built in various areas at full speed.

This scene is like a war without the smoke of gunpowder. Every developer is racking their brains and showing off their skills. Through various means, such as optimizing design plans, improving construction quality, and introducing preferential policies, they are trying their best to fight for the limited market share. The competition is extremely fierce.

After the sales report was completed, the atmosphere in the meeting room eased a little.

Ma Dezhong pushed the black-framed glasses on his nose, cleared his throat, and began to move on to the next important topic - introducing various costs.

"Colleagues, let's focus on the cost sector next."

Ma Dezhong distributed the report to everyone present, which contained a set of densely packed data tables.

"First, there's the cost of raw materials. Affected by recent market fluctuations, prices of key raw materials have increased by 15% compared to the previous quarter. Taking our core product A as an example, the cost of raw materials alone has increased by 20 yuan per unit. This has had a significant impact on product profit margins."

He frowned slightly and tapped his finger on the data.

Li Ming from the marketing department couldn't help but interject, "That's a huge increase. Have you considered looking for alternative suppliers?"

Ma Dezhong turned his gaze to Li Ming and nodded in response, "Our procurement team is already actively expanding our supplier resources, but the current supply channels for alternative high-quality raw materials are limited, making large-scale replacement difficult to achieve in the short term."

Ma Dezhong then added, "In terms of labor costs, as new business lines expand, we've added two new project teams. This headcount increase has led to an 8% increase in salary expenses. At the same time, to enhance employee skills, training investment has also increased by 30%. While this is for long-term development, it does increase the current cost burden."

Financial Director Wang Yue paused in thought before remarking, "Human resources and training investments are necessary, but we need to optimize the input-output ratio. We can review our training programs and assess which ones can bring more direct benefits."

Ma Dezhong noted the key points in agreement.

"There are also operating costs. Logistics costs have increased by 12% due to rising oil prices and adjustments to logistics policies in some regions. Warehousing costs have also increased due to the expansion of inventory."

Ma Dezhong's expression was solemn. "Taken together, the rising costs of various items are putting tremendous pressure on the company's operations. We must discuss a response strategy as soon as possible."

The meeting room fell into deep thought again, and everyone was thinking about how to find a balance between cost and benefit.

"At present, some buildings have successfully completed the roofing work. If you have the opportunity to visit the construction site, you can see colorful flags flying and the scene is bustling with activity. Tower cranes are waving their giant arms and construction workers are busy shuttling back and forth. The progress of various projects has long been more than half, and the overall progress is very smooth."

He paused briefly, his eyes sweeping across the audience, relief and confidence evident. He continued, "It's worth noting that the specific construction costs aren't significantly different from our previous estimates. Every brick we purchase is meticulously selected to meet stringent quality standards, and every bag of cement, its grade and performance, has been repeatedly verified. Every expenditure is under strict control."

After meticulous calculations by colleagues in the Finance Department day and night, the total construction cost of a single house, including raw material procurement, labor costs, machinery rental, and other related costs such as water and electricity bills, and temporary facility construction, totaled as high as 3.2.

Talking about the sales price, Ma Dezhong flipped through the documents in his hand, which were densely packed with data and analysis. "According to sales data, the average selling price of our houses is 4.3 yuan. This means that for every house successfully sold, we can reap a profit of 1.1 yuan. This profit is like a farmer who works hard all year long, sowing in spring, watering in summer, and guarding the fields in autumn, and finally picking the heavy, plump fruits from the fields. It is tangible and gratifying."

Moreover, I want to emphasize that this is the net profit after deducting all costs. Every penny has been rigorously calculated and there is not a trace of water.

Our project has a total of 792 houses. Minus the 20 reserved houses, the total profit generated by the houses sold so far is just over 800 million.

This money was like unexpected money falling from the sky, and it fell steadily into the company's pocket, which was a beautiful answer to our hard work during this period.

At first glance, this 800 million profit may seem like a piece of cake to some wealthy entrepreneurs who are accustomed to big events and often participate in multi-billion dollar projects. It seems that earning this little money in half a year is not enough.

But we need to analyze the funds He Yuzhu invested in depth. The construction cost of a house is 3.2 yuan. The total investment of the entire project, from land acquisition, preliminary planning and design to construction, is 2535 million yuan.

Judging from this amount, the profit only accounts for about one-third of the total investment. This may not seem like a high proportion, but a deeper analysis will reveal the difficulty involved.

Don’t forget, this is He Yuzhu’s first foray into the real estate industry. In this highly competitive field with complex rules, newcomers often find it difficult to make progress.

However, He Yuzhu achieved such results in a short period of time with his courage and hard work. This is already a very good start and has laid a solid foundation for him in this field.

However, in fact, the total amount of money invested by He Yuzhu was not just what was seen on the books, but as much as 300 million in cash!

There are many interesting insights behind this figure, among which the unique method of acquiring the land demonstrates He Yuzhu's extraordinary business acumen.