Siheyuan, Shazhu: I have both parents in this life

Chapter 431 The Rising Red Flag

In the final months before Hong Kong's return to China, beneath the surface of prosperity and anticipation, the power struggle among various factions intensified.

In April 1997, in the office of the Assistant Commissioner of Police, Ho Yu-yiu had an intelligence summary from below laid out in front of him.

Several previously overlooked "cultural associations" and "student organizations" have become unusually active recently, frequently organizing rallies on sensitive topics, and often involving unidentified foreign individuals.

“They’ve gotten smarter. They’re no longer resorting to direct violence; they’ve started using this tactic,” He Yuyao told the head of the intelligence department who came to report. “The goal is to incite conflict and create a false impression of public opinion.”

“Inspector Ho, these organizations have complex backgrounds, many of them are disguised as religious or foundations, making them difficult to deal with and easy to be attacked under the pretext of human rights, freedom of speech, etc.”

He Yuyao tapped her fingers on the table: "Then let's try a different approach. Investigate their cash flow, venue rentals, and the backgrounds of their key members. Any cases involving illegal assembly, noise pollution, or unlicensed fundraising should be dealt with strictly according to the law, without any leniency. Notify the PTU to increase patrol density around these assembly sites. If any illegal activity is encountered, take decisive action, but ensure that procedures are compliant. We must use the law as a yardstick to measure and eliminate these noises."

"understand!"

Meanwhile, in his office on the top floor of the Yellow River Group building, He Yaozu was facing different kinds of pressure.

Several long-term British banks suddenly tightened their credit lines for some Yellow River projects, giving vague reasons.

Rumors about Huanghe's tight cash flow have also begun to circulate in the market.

“It’s just the same old trick, trying to create some trouble when we take over key assets.” He Yaozu instructed the CFO, “Activate the reserve funds to ensure the smooth completion of the acquisition project.”

"Okay, Mr. He, should we contact the Bank of China?"

“Yes, I think they would be happy to lend us a loan,” He Yaozu said.

"Yes, they've contacted us several times already, but we've refused them all before."

“Let’s take the initiative this time,” He Yaozu said.

"clear."

In May, amidst a light drizzle, a meticulously planned illegal march, ostensibly "in the name of culture," attempted to take place on Hong Kong Island.

The organizers attempted to block traffic and create chaos.

He Yuyao was in charge of the command center, and the PTU and mobile forces had already been deployed at key intersections.

"Has the warning procedure been completed?" He Yuyao asked.

"Three broadcast warnings have been issued, Inspector Ho."

"Clear the area as planned. Ensure that body cameras are on throughout the process. Take decisive action against any violent resistance, but strictly prohibit the excessive use of force."

Once the order was given, well-trained police officers formed a human wall and began to guide and disperse the crowd in accordance with the law.

Although there were some pushing and shoving and minor conflicts during the process, the situation did not escalate due to strict discipline and transparent law enforcement procedures.

The main organizers and several people who led the charge against the cordon were quickly removed from the scene.

This efficient and restrained law enforcement, broadcast through the media, has to some extent curbed the imitation effect.

He Yuyao knew that this was one of the last and most important security rectifications before the handover, and it had to be done flawlessly within the legal framework.

In June, the streets of Hong Kong began to be quietly decorated with Bauhinia flower elements.

Amidst an atmosphere of anticipation and anxiety, several major acquisitions spearheaded by He Yaozu were completed one after another, further consolidating Huanghe's industrial empire.

Following his father He Yuzhu's instructions, he began to gradually liquidate some non-core assets and hoard a large amount of cash to cope with any economic fluctuations that might occur after his return.

Bai Yifeng and his core subordinates have quietly left Hong Kong in batches.

In late June, He Yuzhu met with Lao Fan.

"Here, take this. You can decide what to do with it." He Yuzhu handed Lao Fan a thick brown paper bag.

Old Fan took it; it felt heavy in his hand.

He opened it and quickly flipped through it. Inside were detailed addresses, personnel lists, activity patterns, and internal structural sketches, even including shift change times and several possible secret passage exits.

The target was several key strongholds in Hong Kong that a Western superpower's intelligence agency had been operating for decades.

"So detailed?" Old Fan's pupils contracted slightly.

"We couldn't handle those people before, so we've left them to you."

"Don't worry, we won't let them continue to get away with it."

He Yuzhu nodded and added, "You'd better set up a perimeter in advance and not rely on the Hong Kong police."

Old Fan carefully put the document away: "Don't worry, we know what to do."

“There are some other things inside that require a lot of manpower. Your company in Hong Kong should expand.”

"I think you should be in my position."

"Come on, I'm doing fine now, but shouldn't you retire, you old codger?"

"Yes, it should be more or less over after this."

"Alright, hurry back, I won't keep you for dinner."

"It feels like I'm working for you," Lao Fan said helplessly.

"I don't mind having you as a subordinate when you retire."

"Hahaha, then I'll be waiting to fight alongside you, Lao He, again." Lao Fan laughed.

June 30, 1997, night.

In the old city of Beijing, there was the He family's courtyard house.

Inside the main room, the television was on, and the volume was turned up very high.

The entire He family, including Yu Zecheng, Wang Cuiping, and Lao Fang, sat quietly in front of the television.

The live broadcast had been going on for over ten hours, and the important moment was about to arrive. The children had already been put to sleep, and the yard was exceptionally quiet, with only the sounds from the television and the faint sound of firecrackers in the distance.

On the screen, the handover ceremony of the Hong Kong Convention and Exhibition Centre is being broadcast live.

He Yuzhu sat upright with his hands flat on his knees, seemingly calm, but his slightly pursed lips betrayed the turmoil in his heart.

I vividly remember the scene of going to Hong Kong in the mid-1960s; Hong Kong was a completely different place back then.

Over the past four decades, he has personally built a business empire spanning both sides of the Taiwan Strait, and he knows all too well the silent dedication and sacrifice of countless people behind this flag that is about to be raised.

At this moment, he is more like a witness, witnessing the end of a humiliating period and the beginning of a new era.

Xiaoman sat beside him and quietly took his hand, which was resting on his knee, feeling the unusual warmth emanating from his palm.

She glanced at her husband's resolute profile, her heart filled with understanding.

She recalled her years in Hong Kong, the hardships of the business battles, and understood even more clearly the profound sense of patriotism surging beneath this calm.

Old Fang leaned back in his chair, his hands clasped in front of his abdomen. His eyes were still sharp, but now held a complex look that was hard to describe.

He has spent most of his life battling rivals hidden in the shadows, with Hong Kong being the front line.

Watching the Union Jack about to be lowered on TV, he felt not much excitement, but rather a sense of relief that "this day has finally come," and a cautious approach to the challenges ahead after thoroughly cleaning the corners of the house.

Yu Zecheng sat upright, with Wang Cuiping sitting next to him.

Having both worked within the Hong Kong police force and its training system, the two men felt a complex mix of emotions. They had witnessed the flaws of the old system and had also personally mentored a new generation of law enforcement officers like He Yuyao.

For them, the return is not only a transfer of sovereignty, but also means that the seeds they sowed back then can finally grow strong on their own land.

Yu Zecheng and Wang Cuiping subconsciously adjusted their sitting posture, as if they were still wearing that familiar uniform.

Although most of the younger generation, such as He Yaozu and He Ningxue, were born and raised in Hong Kong, they were now in their ancestral home in Beijing, feeling the immense emotions contained in the silence of their parents. Their understanding of "family" and "country" became incredibly clear and profound at this moment.

Although Hong Kong is not their hometown, it is the place where they grew up. Now that Hong Kong has returned home, they feel the excitement of wanderers returning home.

The camera shifts, and the ceremony enters its most crucial phase.

When the flag-lowering ceremony began, the room fell completely silent.

The iconic flag slowly fell and was folded up.

At that moment, He Yuzhu clearly heard Lao Fang beside him let out a very light, almost inaudible long breath.

Immediately afterwards, the majestic national anthem played, and the bright five-star red flag and the Bauhinia regional flag rose steadily and unfurled in the wind amidst the melodious chimes and the gazes and heartbeats of countless people.

Thunderous applause erupted from the television, and the screen was illuminated by fireworks.

He Yuzhu felt Xiaoman tighten her grip on his hand. He slowly stood up and began to sing the national anthem along with the music. Everyone else in the room also stood up and sang the national anthem.

A feeling of excitement filled the air.

He Yuzhu's gaze passed over the television screen, as if piercing through time and space, and saw the dazzling spectacle blooming above Victoria Harbour, and the reborn Pearl of the Orient.

"I'm back," He Yuzhu said softly, as if it were a sigh or a declaration.

"Yes, he's back!" Old Fang echoed.

"Go set off the cannons!" He Yuxin shouted.

"The younger generation all rushed out, while the children's mothers ran back to their rooms. The sound of firecrackers outside was almost like that of the New Year, and the children must have been woken up."

"Crackling and popping, bang!"

"Crackling and popping, bang!"

The sounds of firecrackers and fireworks lasted for a long time. He Yuzhu had the children take Lao Fang, Yu Zecheng, Wang Cuiping and others home, while he himself helped He Daqing and Chen Lanxiang back to the back to rest.

Many people were destined to have a sleepless night, and He Yuyao was one of them. The entire police force was on high alert to prevent anyone from running out and causing trouble.

Old Fan was one of them; he even went to Hong Kong to personally oversee things.

July 1st, early morning.

After a night of celebration, Hong Kong welcomed its first morning since the handover.

The sunshine dispelled the gloom of the past few days and shone on the calm surface of Victoria Harbour.

On the streets, the ribbons and flags left from last night's celebrations have not yet been completely cleaned up, and brand-new five-star red flags and Bauhinia district flags flutter in the breeze on the windows of many shops and the balconies of residents.

The atmosphere on the street was one of complex tranquility. At the newsstands, people flipped through the front pages of newspapers reporting on the resurgence of the epidemic, their discussions quiet, their expressions a mixture of curiosity and observation. The tea restaurants were still packed with diners, the heat and noise as usual, but the conversation inevitably revolved around "what to order next time."

Traffic was orderly, and the patrolling police officers wore new cap badges and walked with a steady gait.

Beneath this seemingly ordinary surface, the undercurrents have not completely ceased; they have merely transformed.

A few days later, in an inconspicuous luxury apartment building in the Mid-Levels of Hong Kong Island.

Sitting in the makeshift command post, Lao Fan whispered into his headset: "Target location confirmed. Team A, block the exit. Team B, prepare to storm in. Action."

At almost the same time, a "trading company" located in an office building in Central and a villa in Kowloon Tong were also raided.

These locations are precisely the strongholds that a certain Western superpower's secret service department has been operating for many years, as clearly marked in the information provided by He Yuzhu.

The operation was swift and quiet, with no intense firefights, and most targets were brought under control while the others were still in shock.

Old Fan's men professionally seized computer hard drives, encrypted files from filing cabinets, and communication devices. Hidden rooms and safes were opened one by one, revealing years of accumulated intelligence, lists of undercover agents, and operating funds.

Subsequently, some information channels and special networks that were originally controlled by Bai Yifeng's subordinates and operated in the gray area were quietly taken over, modified, or replaced by people sent by Lao Fan in various identities—perhaps employees of newly registered consulting firms, or security consultants with deep backgrounds.

These gaps were filled quietly, ensuring that some necessary information flow and influence could continue in a more compliant manner under the new rules.

In the old city of Beijing, there was the He family's courtyard house.

He Yuzhu received an encrypted call from Lao Fan in Hong Kong.

"The house is cleaned up." Old Fan's voice carried a hint of fatigue and relief after completing a major task. "It went more smoothly than expected. Some rats were fast, but their nests were destroyed, and we recovered quite a few items. The 'key' you gave me is very useful."

"You've worked hard," He Yuzhu said. "My task is complete. The rest is up to you."

"I won't say much more about my thanks. I'm almost done here. Once the handover is complete, I'll come back to Beijing to have a drink with you."

"Wait for you."

Almost simultaneously with the return, another major event occurred.

On July 2, Thailand announced that it would abandon its fixed exchange rate system, causing the Thai baht to plummet and officially kicking off the Asian financial crisis.

Panic quickly spread to countries such as the Philippines, Malaysia, and Indonesia, causing a chain reaction of blows to currencies and stock markets.

Xiaoman placed a prepared report in front of He Yuzhu: "It's started in Southeast Asia, pretty much as we predicted. The next target for international speculative capital is likely Hong Kong."

He Yuzhu nodded calmly: "How are our preparations going?"

"According to your previous plan, we have already established capital pools in several offshore markets overseas, mainly through Yao Zu's companies in Hong Kong and Singapore, as well as several newly established investment companies in North America. The leverage ratio and risk hedging are all controlled within the planned range."

"You're in charge this time too."

"Why not let your son give it a try?"

"He's still too inexperienced; this is a large-scale operation."

"Okay, this time our main targets are several markets and companies that have experienced severe bubbles in the early stages and are in fierce competition with our industry, especially yen assets and conglomerates that rely on exports."

"You handle the specific operations. We've made ample preparations. While we're reaping the rewards, we need to keep the Hong Kong market stable."

"clear."

Afterwards, Xiaoman took He Yaozong, He Ningxue and others back to Hong Kong.

Hong Kong, the headquarters command center of the Yellow River Group.

The huge electronic screen displays real-time exchange rates of major global currencies and stock index futures data.

The teleconference system connects the trading teams in Singapore, London, and New York.

The atmosphere was tense yet orderly.

Xiaoman was in charge of the central operations, He Yaozu was responsible for fund allocation and coordination with banks, while He Yaozong led the analysis team to monitor the financial situation and market exposure risks of the target companies. "Mom, speculative funds have started to sell Hong Kong dollars on a large scale." He Yaozong stared at the screen. "The Hong Kong Monetary Authority has intervened and raised the overnight interbank lending rate."

"Keep up with us." Xiaoman's instructions were clear. "Use our funds to buy Hong Kong dollar futures long contracts in batches and in small amounts. Don't drive up costs all at once. Cooperate with the Hong Kong Monetary Authority to stabilize exchange rate expectations. At the same time, establish defensive positions on Hang Seng Index futures."

"Understood." He Yaozu immediately issued instructions to each account.

This financial battle is exceptionally brutal.

International speculative capital, with its massive amount of funds and skillful use of derivative instruments, continues to impact Hong Kong's linked exchange rate system and stock market.

With the support of the central government, the Hong Kong Monetary Authority has taken strong measures, including directly intervening in the market to buy stocks.

The funds from Huanghe played a crucial role in this. They did not blindly prop up the market, but rather used their deep understanding of local businesses and the market to precisely allocate funds, stabilize confidence in blue-chip stocks, and take advantage of market fluctuations to buy low and sell high. This not only effectively hedged the risks but also generated small profits, accumulating more "ammunition" for subsequent actions.

Meanwhile, another front quietly unfolded.

"Target A, XX Pharmaceutical." The analysis team presented a report to Xiaoman. "This company has long relied on overseas short-term bond financing. The sharp drop in the Thai baht has led to a sharp decline in its revenue in the Southeast Asian market, resulting in tight cash flow. We have detected that a large amount of its debt is about to mature."

“The opportunity has arrived.” Xiaoman looked at He Yaozu. “Through our investment company in North America, we will quietly acquire its soon-to-mature junk bonds, and then spread ‘analysis reports’ in the secondary market about its R&D failures and potential cash flow problems—remember, use public data, legally and compliantly.”

"At the same time, we contacted them about their non-core overseas assets that they were interested in selling, and tried to lower the price," He Yaozong added.

A similar strategy was used by an overseas subsidiary of a grain trader that previously attempted to undermine China's food security.

The grain trader suffered heavy losses due to soaring costs at its plantations in Southeast Asia caused by currency devaluation, and was further attacked by agricultural futures contracts launched by Huanghe through a third party.

Upon receiving instructions from He Yuzhu in mainland China, Xu Damao immediately took action. He directed the trading companies and cooperative pharmaceutical factories under the "Yellow River Traditional Chinese Medicine Development Alliance" to take advantage of the currency devaluation and asset price decline in Southeast Asian countries to increase their penetration and control over the production areas of high-quality medicinal materials.

"Mr. Li, regarding that spice plantation in Indonesia, the other party was adamant about the price before, but now we can go and talk to them. We can negotiate the price down by 30%."

"Director Wang, several small and medium-sized herbal extract plants in Thailand are going out of business. Send someone to contact them and see if there are any possibilities for mergers and acquisitions or technological cooperation. Remember, we only want the technology and distribution channels; we don't want non-performing assets."

At the same time, he did not forget his former rivals.

Through special channels, he learned that a joint venture of a Japanese pharmaceutical company in Thailand was in trouble due to the sharp depreciation of the local currency and was eager to sell its core assets to raise cash.

Xu Damao sneered and instructed his men: "Go, buy it, drive the price down to the bone. How they stole our formula back then, this time we'll get it back with interest."

On the peninsula, Taishan Group also took the opportunity to complete its transformation, continuously acquiring peninsula industries, further expanding its influence on the peninsula, and beginning to rival established conglomerates in some areas.

Subsequently, the battle to defend Hong Kong's financial interests entered a fierce stage.

International speculative capital launched a multi-pronged attack on the foreign exchange, stock, and futures markets simultaneously, causing the Hang Seng Index to fluctuate wildly and market confidence to the brink of collapse.

At a critical moment, with the support of the central government, the Hong Kong Monetary Authority used the Exchange Fund to directly enter the market and buy constituent stocks, a first in history, and confronted international speculative capital head-on.

The Yellow River Group stands firmly on the side of the Special Administrative Region government.

Ho Yiu-cho publicly expressed his confidence in Hong Kong's economic prospects and announced that the group would seek investment opportunities in high-quality assets amid market volatility.

Privately, he directed the group's funds to cooperate with the Hong Kong Monetary Authority's actions, establishing long positions in the futures market and supporting his own and other high-quality blue-chip stocks in the spot market as needed.

The overseas funds controlled by Xiaoman continue to launch a "besieging Wei to rescue Zhao" style attack on institutions associated with speculative capital around the world, diverting their forces and attention.

This war without gunfire lasted for several months. In the end, with Hong Kong's substantial foreign exchange reserves, its firm commitment to the linked exchange rate system, and the unwavering support of the central government, international speculative capital suffered a crushing defeat.

Although Hong Kong's economy suffered a severe blow and the real estate and stock market bubbles burst, the foundation of its financial system remained intact, and the linked exchange rate system was preserved.

By the fourth quarter, the aftershocks of the Asian financial crisis were still lingering, but the streets of Hong Kong were gradually returning to their usual rhythm.

In his office on the top floor of the Yellow River Group, He Yaozu stood in front of the floor-to-ceiling window, looking down at the gradually recovering traffic flow, holding a newly delivered asset liquidation report in his hand.

"Dad, the final calculations are in." He turned around and gently placed the report on the large mahogany desk. "After deducting all operating costs and risk hedging expenses, the group's net assets have increased by 1.3 times compared to before the storm. This is mainly due to the advance planning in overseas futures markets and the contributions from several Japanese pharmaceutical companies that bought in at low prices."

He Yuzhu sat on the sofa, leisurely brewing tea, and merely raised his eyes upon hearing this. "What about the Hong Kong real estate market?"

"It's fallen by about 40%, and the book value of our commercial properties has shrunk significantly, but the rental income is still relatively stable. As for the residential projects, we've basically held onto them as you said and haven't touched them." He Yaozu paused, "Several banks have approached us, asking if we're interested in taking over their non-performing asset portfolios, mainly the mortgaged properties and land."

"How did you respond?"

“I said I needed to think about it, but I didn’t rule it out.” He Yaozu sat down opposite his father. “At the current price, it’s really a bargain. But I’m worried that it might drop further, and it ties up too much capital.”

He Yuzhu pushed a cup of freshly brewed tea towards him. "It can't fall much further. Hong Kong is only so big, backed by the mainland, and its economy will eventually recover. We can slowly acquire properties in prime locations with clear property rights. If you don't have enough money, have your mother transfer it from her North American account."

He Yaozu nodded and kept it in mind.

He knew his father was probably looking at the future ten or twenty years from now.

"Also," He Yuzhu added, "let's talk to your Uncle Mao. Didn't he buy up several medicinal herb bases and pharmaceutical factories at rock-bottom prices recently? Ask him if he's having any cash flow problems. If so, the group can provide support."

"clear."

A few days later, He Yaozu conveyed He Yuzhu's intentions at a senior management meeting of the group.

The vice president in charge of the real estate sector hesitated: "Chairman, market confidence hasn't recovered yet. Wouldn't it be too aggressive for us to expand against the trend?"

Ho Yiu-cho waved his hand, his tone calm yet undeniable: "It's not expansion, it's sowing seeds. Hong Kong is the root of the Yellow River; the deeper the roots, the bigger the tree. Now is the perfect time to fertilize it. Go ahead and do it; I'll take care of the funding."

After the meeting, he personally led a team to begin screening the non-performing asset packages recommended by the banks. The process was not easy, requiring the identification of which were high-quality assets facing temporary difficulties and which were truly problematic. The legal and auditing teams worked overtime continuously, and He Yaozu often participated in the specific project assessments.

Meanwhile, in the Special Economic Zone, at the Yellow River Communications Headquarters.

He Yaozong faced a completely different situation. The financial crisis led to a contraction in overseas orders, and some component suppliers who relied on exports were in trouble.

“Mr. He, this is the quotation we just received,” the purchasing manager handed over a document. “Those European chip distributors who were previously holding us back have softened their prices and lowered them by 15%. There’s also a secondary distributor for STMicroelectronics asking if we’re interested in taking over the remaining capacity of one of their old production lines.”

He Yaozong carefully reviewed the price quote and technical specifications. "The price is good, but their technology is a generation behind our domestic partner factories. Even if we buy it, we can only use it on low-end product lines."

“But the overseas market for high-end machines is also shrinking right now,” the marketing director said worriedly. “Should we prioritize cash flow and maintain production using cheaper components?”

He Yaozong pondered for a moment, then shook his head. "We can't back down. The storm will eventually pass, but once the technological gap widens, it will be much harder to catch up later. We should tell those research institutes and factories in China that we will not only not reduce orders, but we can also make partial advance payments to help them through this difficult time, on the condition that they complete the process upgrades on schedule. In addition, we should reply to that STMicroelectronics agent that we want the production capacity, but not for production; we want to dismantle it for our engineers to study and reverse engineer. We'll also negotiate a 10% discount on the price."

He looked at everyone and said, "My dad always says that you only find out who's been swimming naked when the tide goes out. Now is the time to hone our skills. In the communications field, we must keep the core technologies in our own hands."

Huagao Technology Headquarters, Beijing.

Lu Shuyi's pressure was no less than that of Hong Kong and the Special Administrative Region. The financial crisis caused delays in the funding process for some military projects, and some supporting private suppliers experienced cash flow problems.

"Mr. Lu, we received a call from Sanlianxing Machinery Factory saying that if we don't pay 30% of the progress payment in advance, they might not be able to deliver next month," the assistant reported in a low voice. "They are the only supplier providing the precision casing for our new data link terminal."

Lu Shuyi rubbed her temples. "Their quality and craftsmanship are truly impeccable... How much working capital can the finance department squeeze out?"

"It's very stressful. This month we have to pay for both the Xi'an Aircraft Industry Group and the Navy project at the same time."

Lu Shuyi pondered for a moment, then picked up the phone and called He Yuzhu, briefly explaining the situation.

He Yuzhu was silent for a few seconds on the other end of the phone, then said, "The rules can't be broken, and advance payments don't follow the proper procedures. Here's what we'll do: you have Sanlianxing use their factory buildings and equipment as collateral, and I'll have Huanghe Investment provide them with a short-term bridge loan at the lowest possible interest rate. This will solve their immediate problem without breaking Huagao Technology's rules."

"Thank you, Dad!" Lu Shuyi breathed a sigh of relief. She knew that this was the most support her father-in-law could provide within the rules.

“We’re all family here, let’s not talk about these things. Stay calm. It’s precisely at times like these that we need to demonstrate the resilience and responsibility of our private sector.” He Yuzhu paused, “Tell everyone that Huagao Technology will not miss a single order, so you can focus on R&D.”

After hanging up the phone, Lu Shuyi immediately arranged for someone to make contact. She knew that Huagao Technology carried not only commercial interests, but also the trust and expectations from above, and she absolutely could not afford to fail at this crucial moment.

As the year draws to a close, the impact of the financial crisis is gradually fading.

Thanks to its forward-looking strategy and ample cash reserves, the Yellow River Group not only weathered the crisis but also became even stronger.

Several properties bearing the Yellow River logo have sprung up in prime locations in Hong Kong; the Special Administrative Region's telecommunications company gritted its teeth and completed another technological iteration; and several key projects managed by Huagao Technology have also reported good news one after another.

He Yuzhu's life seems to have returned to its previous rhythm: playing with his grandchildren, playing chess and bickering with Lao Fang and Lao Zhao, and occasionally going to the group to listen to reports.

Several factories in Harbin were completed one after another and entered the equipment installation stage, keeping Yang Tao extremely busy.

The head of the system development department came to report to He Yuzhu.

"Chairman, the first phase of the ERP system, including the financial, supply chain, and production data chains, has a 92.7% pass rate in internal stress tests. The main bottleneck is still the standardization of historical data migration from various branches, especially the merging of the two accounting systems in Hong Kong and the Special Administrative Region in the early years, which requires a lot of manual verification."

He Yuzhu said, "You've thought ahead, but it's a pity you've done all that work for nothing. Don't merge the two systems yet. They'll each run their own thing, with different financial systems. How can they function? From now on, we'll focus all our efforts on the domestic business. By June of next year, all core business segments must be running smoothly."

"Yes, what about Hong Kong?"

“You can send a separate team from Hong Kong to work on this, or have someone from Hong Kong come to assist you.”

"Let them provide the personnel; we have communication problems due to the language barrier."

"Then let's do it this way. Go find He Yaozu yourself. Any problem?"

"No, no problem."

"Okay, let's go."

During this period, Gu Yuanheng made a trip to Beijing.

"Boss, the initial disassembly of that 'big item' you sent back last time is complete. It's more complicated than we expected, but also more valuable."

He Yuzhu gestured for him to continue.

"The items have been divided into several major parts. The core modules for navigation, positioning, and signal processing, along with the special radiation-resistant chips and precision timing mechanisms used on them, have all been sent out separately as you instructed." Gu Yuanheng took out a list from his briefcase. "The Precision Engineering team took the structural components and some mechanisms, saying they want to study their lightweight and space environment adaptability design. The Microelectronics Research Institute, which is Huang's team, received the core processing unit and some memory; they are very interested in the integrated circuit technology inside, saying it has broadened their horizons. The Communications Laboratory is mainly studying its signal transponder and antenna technology."

He Yuzhu looked at the list carefully and nodded slightly.

"Have you encountered any difficulties?" He Yuzhu asked.

“Yes.” Gu Yuanheng’s smile faded. “The main problem is the lack of data. We can disassemble the hardware to examine it, but the underlying algorithms and software are black boxes, and it’s difficult for our current technology to extract them non-destructively. In addition, the compositional analysis of some special materials also takes time. The accuracy of the relevant testing equipment in China is not enough, and we may need to send them to a partner laboratory abroad, but that is risky.”

He Yuzhu thought for a moment and said.

"Software and algorithms can't be rushed. We need to thoroughly understand the hardware first. Let Xingyao figure out a way to analyze materials. If all else fails, we can go to Lao Bai to see if we can find a reliable third-party laboratory in North America to perform segmented testing. We should avoid sending samples all at once to ensure safety."

“Understood.” Gu Yuanheng noted it down. “There’s another problem. Several core teams involved in the dismantling and research have reported that, given the current project schedule, it’s difficult to fully dedicate themselves to this ‘new topic.’ We have to juggle both aspects, and manpower and time are indeed tight.”

"Then add more people. If all else fails, move all projects to China, where there are more people."

"Okay, boss."

"What about yourself?"

"I'll stay in Hong Kong, but boss, if you ever have any challenging jobs in the future, don't forget me. I'm capable."

"I can't forget you, don't worry, unless you can't move anymore."

"That's great."

After Gu Yuanheng left, He Yuzhu made several phone calls to several laboratories, firstly to remind them to keep it confidential, and secondly to speed up the progress, and to seek help from the state if necessary.

Not long after Gu Yuanheng left, someone from the He family came to visit again, Lu Shanhe.

“Old He, I won’t beat around the bush. The family is determined to develop a new generation of ‘large destroyers’ and ‘general-purpose Aegis ships.’ The targets are high, and the timeline is tight. We’re gritting our teeth and keeping up in other areas, but in some key subsystems, especially the integrated radio frequency system and integrated mast, our foundation is too weak. The existing research institutes and factories can’t crack it in a short time. Your Huagao Technology has a strong foundation in electronic system integration and precision structural components. Could you lend a hand?”

"Why don't you just contact the relevant department? Why are you coming to me?"

He Yuzhu clearly understood that the "large destroyer" and "general-purpose Aegis ship" mentioned in Lushanhekou referred to the Type 055 and the improved Type 052D, which are the backbone of the future navy and are extremely complex systems engineering projects.

There's not much Huanghe (Huagao Technology) can get involved in, and these things shouldn't be coming to him, a businessman.

“I need your attitude. You know that the funding and technology over there are not keeping up. At this stage, I want Huagao Technology to contribute more.”

"Old Lu, the integrated radio frequency system is the core of the entire ship. The core algorithms and top-level architecture involved are beyond the reach of our private enterprises, and we dare not touch them. However, the high-speed data exchange bus between the various units within the system, the special connectors that resist electromagnetic interference, and some non-core but highly reliable signal processing modules—these 'joints' and 'capillaries'—may be worth a try by the Precision Engineering and Electronic Technology Laboratories. In addition, the integrated mast you mentioned has extremely high requirements for lightweight structure, weather resistance of composite materials, and internal electromagnetic compatibility. This is precisely the advantage we have accumulated from our cooperation with Xi'an Aircraft Industry Group and Harbin Aircraft Industry Group. We can take the lead, uniting with capable materials research institutes and manufacturers in China, to conduct preliminary research and prototype manufacturing."

"What if Huagao Technology could use a different name?" Lu Shanhe asked tentatively.

"What do you mean? You old bastard, you want to buy my company?"

"No, no, no, you've misunderstood. Besides, I can't afford to accept it," Lu Shanhe hurriedly said.

"I can't get that brand, and besides, what use is that brand to me?"

"That's not very meaningful. Do you think I don't know what kind of person you are, Lao He? I'll handle the brand. I just need you to say the word: are you willing to give up Huagao Technology?"

He Yuzhu deliberately remained silent for a long time, while Lu Shanhe next to him smoked one cigarette after another.

After a long pause, He Yuzhu spoke up: "Can you guarantee that I can still use the civilian technology? If you can, I'll agree; if not, I'd rather not have this license."

"I need to ask about this. I'll try my best to keep Huagao Technology's model the same, and I know you've invested a lot."

"This isn't a matter of money, it's a matter of people. I can't find more scientific and technological personnel. My Yellow River project also needs to develop and progress, otherwise, if others catch up with us, I'll be eliminated."

"Yes, yes, I understand, I understand, I'll try my best to help you."

"We must try to do it, otherwise we'll have to split it up again and you'll have to provide the personnel yourselves."

"No, what I need are the people! If you take them all away, what am I supposed to do?" Lu Shanhe said urgently, this was the first time he, the commander-in-chief, had ever been so humble.

"If it doesn't work, then do it separately. I can't be left without any protection at all; that wouldn't be fair to me or the Yellow River."

"I know."

"Alright, we're done talking. You can leave now."

"No way! You're already here, why don't you treat me to a drink? I've been craving your food and drinks for ages."

"You, a dignified commander, can't have anything you want to eat, yet you come to my house to freeload a meal."

"There are plenty of people who come to your house for a free meal, one more won't make a difference, one more won't make a difference. I'll go pick up Lao Fang and Lao Zhao right now." Lu Shanhe said, and before He Yuzhu could react, he got up and walked out.

He Yuzhu shook his head and smiled wryly; he would have to cook again.

He Yuzhu prepared a table full of authentic Sichuan dishes, including his own innovative dishes. Lu Shanhe, who could drink two jin of liquor, couldn't get off the table. When he was sent back, he kept shouting that he wanted to compete with He Yuzhu next time.

He Yuzhu only informed a few key personnel at Huagao Technology, namely Lu Shuyi, Zhou Lei, and Wu Yang, about the arrangements made by Huagao Technology.

Aside from Lu Shuyi, the two boys actually agreed, after all, they came from the military and were determined to strengthen the army. Moreover, the two boys promised to do even better in the future.

"Things are not settled yet, so don't spread this around."

"Yes, we promise to keep it a secret," the two replied.

“I know what’s important, Dad!” Lu Shuyi replied.

(End of this chapter)