Boss Jia was indeed very busy. After Zhu Qiushui left Yuzhang with her son, Boss Jia rushed to Shanghai to attend the completion ceremony of Shanghai Film City.
Shanghai Film City could be said to be the largest project in the history of Baidu Real Estate. It took a total of six years to complete and hold the completion ceremony.
Shanghai Film City was located in Shanghai's Pudong New District. It covered a total area of 60 square kilometers, which was twice the size of the famous Hengdian Film City in the future. It also occupied 4% of the entire Pudong New District.
Logically speaking, such a huge area would definitely be impossible to take down in the year 2000.
However, this piece of land was bought by Baidu Real Estate in 1994. At that time, Pudong New District was barren and filled with villages. It did not have a modern feel at all.
Therefore, when the new district government learned that Baidu Real Estate planned to build a large-scale Film City to develop the local economy, they agreed with both hands and feet. The acquisition of the entire land went smoothly.
At the same time, because the area of the Film City was too large, the construction of the entire Film City took a total of six years to complete. Baidu Real Estate invested more than 20 billion yuan in this huge project.
This made many people quite confused about the development speed of Baidu Real Estate. This was because Baidu Real Estate's rise and development speed in the real estate industry was simply like the devil.
Ordinary real estate companies would acquire land while building. Then, they would recover the funds and continue to develop the next piece of land.
Although many real estate companies had developed ways to sell houses in advance, all the houses would be sold as soon as the foundation was laid. At the same time, every real estate company owed the bank twice the amount of their fixed assets.
But even so, it would still take a long time to gather funds, and the speed of development was relatively normal. Baidu Real Estate was the only one that was completely unreasonable.
First of all, after they acquired the land, they would immediately build houses.
Of course, this was normal. What was abnormal was that after the houses were built, they did not seem to sell them at all. They either changed the houses into low-rent apartments to help the poor.
Or they rented them out …
Baidu Real Estate also set up a company called Eggshell Apartments. This company was specialized in the rental business. They directly took the built houses from Baidu Real Estate and invested in the renovation of the houses themselves. Then, they would rent the houses to the tenants as middlemen.
This was because Eggshell Condominium was obtained at zero cost. At the same time, it also had its own renovation company that carried out batches and unified renovations like a production line.
Even the various electrical appliances in the house were purchased in bulk from the Daqian Group's company. The price was about half of the market price. Therefore, the profit margin of Eggshell Apartments was astonishingly high. The annual net profit was said to have exceeded 5 billion yuan.
This also caused many apartment companies to rise in advance.
Although the Eggshell Condominium made a lot of money, it was definitely incomparable to the profits obtained from selling the house directly. Baidu Real Estate rarely sold its properties, so logically speaking, a company like Baidu Real Estate should have closed down a few years ago due to the lack of capital flow.
However, the problem was that Baidu Real Estate, which did not sell its houses, did not go bankrupt. Instead, it continued to buy land every year and expanded its projects every year.
According to incomplete statistics, Baidu Real Estate had more than 800 construction projects in the country, and the total construction area had exceeded one billion yuan. It was the number one real estate company in the country.
With such a huge business, not only did Baidu Real Estate not rely on selling its houses to recoup its capital, but it also had very little bank loans and no private fundraising. Even the invitation to be listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange was rejected. They did not even have the intention to be listed on the stock exchange to recoup their capital.
This made everyone in the real estate industry very curious about the source of Baidu Real Estate's funds. After all, Baidu Real Estate had invested at least 200 billion yuan in various real estate projects over the years. However, no one knew where the money came from!
Of course, for some people with high status, this was not a secret. After all, one only needed to look at the business information to know that Baidu Real Estate's major shareholder was Jia Yapeng. He owned 90% of Baidu Real Estate's shares.
The other 8% was Li Shiyi.
It was originally 10%. However, when Jia Changtian and Jia Zhangzhi were born, Li Shiyi gave 1% of the shares to the two children. Therefore, the third and fourth largest shareholders of the company were the five-year-old Jia Changtian and the three-year-old Jia Zhangzhi respectively.
Of course, these shares were represented by their guardian, Boss Jia.
Those who understood this knew who the source of Baidu Real Estate's funds was. They also knew that Baidu Real Estate's background was very powerful.
Although Boss Jia's biggest backer had passed away, the problem was that his current backer was also very powerful.
Most importantly, the Daqian Group was a company that many big shots admired and even respected.
Let's not talk about other things. In 1998, the Daqian Group paid a total of 78 billion yuan in taxes. That was a good example for Hua Xia. It was like a saint in the business world. It was perfect beyond imagination.
Moreover, the Daqian Group was also very smart. They only touched things that they could touch. They never touched things that they could not touch. In addition, the Daqian Group had become a banner in Hua Xia's market economy. It was even more secure.
Finally, the Daqian Group was also very good at handling local relations. They tried their best to satisfy all kinds of local requests. If some cities wanted to build roads, the Daqian Group would immediately pay for it.
If they wanted to build bridges, the Daqian Group would pay for it on the spot.
If they wanted to do all kinds of infrastructure projects, the Daqian Group would agree without hesitation. Not only did it allow the city to develop rapidly, but it also gave many laid-off workers the opportunity to find new jobs. There was no more perfect company in the world than this.
Cough, cough. Seems like I've gone too far. Back to the topic. Although Baidu Real Estate's business was very big, Baidu Shanghai Film City was still the biggest project in Baidu's history. Xiao Qi attached great importance to it. For the first time, he invited Boss Jia to attend the cutting ceremony.
Of course, before the cutting ceremony officially began, Boss Jia still wanted to understand the industry that he was coming to for the first time. Therefore, accompanied by Xiao Qi and the uninvited Chen Liren, Boss Jia began to tour the huge film city.
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