15 years of rotten tail in Ordos forest park: a wealthy businessman’s land business
In the corner of Ordos "Forest Park", ravines are criss-crossed, and farmhouses and malnourished pines and cypresses are scattered. Photo by Zhao Xiang
He is nearly 2 meters tall and weighs 300 Jin-this was the deepest impression left by Hao Zhangang, a rich businessman in Ordos, to a person who met him for the first time.
On August 20, 2021, Baotou City Public Security Bureau issued a notice saying that the "5.15 Task Force" set up by the Municipal Anti-vice Office destroyed the suspected criminal gang headed by Hao Zhangang in Ordos City, Inner Mongolia for many years and arrested 12 criminals. On August 18th, Hao Zhangang was arrested by Baotou City Procuratorate according to law.
Hao Zhangang data map
According to the notice of Baotou Public Security Bureau, Hao Zhangang gang obtained the land use right from the government in the name of a first-class land development enterprise, and then illegally transferred and resold the land use right to real estate developers at a high price, seeking illegal interests in the process of illegally transferring and reselling the land. It is suspected of illegal transfer and reselling of land use rights and other illegal and criminal acts, and the areas involved mainly include Ordos, Bayannaoer, Tongliao and Hohhot.
In Ordos, Hao Zhangang is a well-known real estate businessman. China News Weekly visited Ordos and learned that the arrest of Hao Zhangang gang was directly related to the Ordos Forest Park project that had been unfinished for many years. In 2006, Dongsheng District Government of Erdos signed an agreement on Forest Park Development with Wan Yu Jiaye Investment Management Co., Ltd. of Inner Mongolia (hereinafter referred to as "Wan Yu Jiaye") controlled by Hao Zhangang, and the company developed the forest park. In exchange, Wan Yu Jiaye got 8,000 mu of construction land. However, in the past 15 years, the forest park has not been completed, and Wan Yu Jiaye, which won the project, has transferred the construction land to dozens of enterprises in the past few years, so that Hao Zhangang’s business is getting bigger and bigger, and even his "forest park model" has blossomed in many places across the country.
A real estate businessman without development qualification
Hao Zhangang, a native of Erdos, was born in an ordinary worker’s family in Wulan Town in 1962. After finishing high school in 1980, he joined the army and settled in the family building of Beijing Air Force Logistics College. Shortly after joining the army, Hao Zhangang was attached to the army to do business in the sea. One of his Hainan subordinates recalled that Hao Zhangang once talked about it at the wine table, and his "first bucket of gold" was earned by "speculating in uncompleted flats" in Hainan in the early 1990s. "Before the collapse of the Hainan property market, he got the news and got away after changing hands, and he even laughed and said that the person who took his project was the" taker ".
Around 2006, Hao Zhangang saw the huge opportunities in his hometown Ordos real estate and returned to Ordos as a "Beijing boss". At that time, Ordos, with coal as its pillar industry, had a rapid urbanization momentum, and local departments were also actively investing in attracting investment. Wu Tian, then head of the land acquisition unit of Dongsheng District Land Bureau in Erdos, told China Newsweek that when Hao Zhangang came to discuss cooperation with the government, he revealed that he had invested 1 billion yuan in Dongsheng District. "At that time, there was also a discussion within the government, saying that Hao Zhangang was worthy of being a big boss from Beijing."
On August 8, 2006, Hao Zhangang registered and established Wan Yu Jiaye in Ordos with a registered capital of 70 million yuan. On November 7th, 2006, Wanyu Jiaye signed the Forest Park Development Agreement with Dongsheng District Government of Ordos City, and Dongsheng District Government handed over the plots located in Dongsheng District, north of South Ring Road, east of Santaichuan, south of Textile Street and west of Tongchuan Road, with a total area of 17.9 square kilometers and nearly 27,000 mu, to Wan Yu Jiaye for development. According to the agreement, Wanyu Jiaye will complete the construction of the forest park within five years, and bear the land acquisition compensation, resettlement fees and other expenses during the construction period, and undertake the construction of infrastructure and six roads in the forest park, with an investment of not less than 80 yuan per square meter. Based on the above conditions, Wanyu Jiaye can choose 5000 mu of construction land in the park.
Wu Tian introduced that this business of exchanging infrastructure for construction land is not an isolated case in Ordos. Take Wanzheng Real Estate, the largest real estate company in Dongsheng District, as an example. The infrastructure and old renovation in Tiexi area of Dongsheng District are operated by Wanzheng Real Estate, and the government uses the construction land to "pay the cost".
As Wanyu Jiaye does not have the qualification of real estate development, in 2008, Hao Zhangang introduced Nanjing Golden Eagle International Group Co., Ltd. with 30% shares of Wan Yu Jiaye. On May 8, 2008, Golden Eagle International, as the major shareholder, led the establishment of Inner Mongolia Golden Eagle Wanjia Real Estate Development Co., Ltd. (hereinafter referred to as "Golden Eagle Wanjia"). In the same month, it signed a tripartite agreement with Dongsheng District Government and Wan Yu Jiaye again, stipulating that some of the development and old renovation projects in the previous agreement would be handed over to Golden Eagle Wanjia with real estate qualifications.
After signing the Forest Park Development Agreement, as of July 8, 2010, Dongsheng District Government and Wanyu Jiaye have successively signed nine supplementary agreements to improve the forest park project. Through nine supplementary agreements, Wan Yu Jiaye obtained the construction land of Forest Park from 5,000 mu to 8,000 mu.
Dongsheng Forest Park is marked on a map of Dongsheng District in Ordos.
The two sides also agreed that the Dongsheng District Government must let Wan Yu Jiaye (or designated enterprise) transfer the land at the cost price, and the transfer fee will be returned to Wanyu Jiaye within one month as land acquisition, park construction and other related expenses and advance income; Dongsheng District Government agrees that Wan Yu Jiaye will participate in the transformation of the old city and enjoy the same policies as the return of land transfer fees in the development of forest parks; Wan Yu Jiaye must participate in the bidding, auction and hanging of every land in the area organized by Dongsheng District. If no competitor bids and auctions the land at a higher price, Wan Yu Jiaye must transfer the land at the reserve price, and the auction money will be returned according to the above agreement; Dongsheng District Government shall not approve any unit or individual to acquire land and build within the planning scope of Forest Park, and resolutely stop any new construction project from appearing in Wanyu Jiaye Forest Park and the old city reconstruction area.
According to the documents, it was Han Guangyuan, the deputy head of Dongsheng District who was in charge of land at that time who signed and sealed the aforementioned development agreement and supplementary agreement. China News Weekly learned that in 2012, the Ministry of Land and Resources reported that Han Guangyuan had been severely punished by the discipline inspection and supervision organs of Ordos City because of his involvement in the illegal land acquisition by Dongsheng District Government. Soon after, Han Guangyuan left the post of deputy district head and worked as the dean and party secretary of a vocational and technical college. Now he has retired. On October 8, Han Guangyuan told China Newsweek that it was not up to him to decide whether to sign or seal the supplementary agreement. All decisions of the supplementary agreement were discussed at the relevant meeting of Dongsheng District Government, and he only implemented them.
The degree of freedom given by the Dongsheng District Government at the agreement level has facilitated what Hao Zhangang will do next.
There are frequent chaos in reselling land
In July 2019, a real estate company from Fujian (hereinafter referred to as "Company F") filed an arbitration with the Ordos Arbitration Commission because the other party failed to submit the land as agreed after purchasing it from Wan Yu Jiaye. The legal document of this arbitration event opened the corner of Hao Zhangang’s land reselling business.
In January 2010, the two parties signed an agreement that Wanyu Jiaye sold 650 mu of construction land in the Forest Park to Company F at a price of 1.5 million yuan per mu, totaling about 1 billion yuan, in the name of the first-class land development enterprise entrusted by the Ordos government, and ensured that Company F could divide the project into several plots according to the plan, and each piece of land could independently apply for a land use certificate; Company F won the land use right of the project plot with a "land payment" of no more than 1.5 million yuan per mu, including a land transfer fee of 350,000 yuan per mu handed over to the land management department, and the rest was paid to Wan Yu Jiaye at a price of 1.15 million yuan per mu.
After the signing of the agreement, Company F paid Wan Yu Jiaye the "land deposit" at the price of 1.15 million yuan per mu, and Wanyu Jiaye also promised that if the land transfer fee exceeded 350,000 yuan per mu in the bidding, auction and auction, Wanyu Jiaye would refund the excess.
Under the arrangement of Wanyu Jiaye, Company F participated in the land bidding, auction and hanging organized by Dongsheng District Natural Resources Bureau, and paid the land transfer fee at the price of 350,000 yuan per mu as agreed in the agreement.
However, Wanyu Jiaye was unable to provide land afterwards. The agreement between the two parties originally stipulated that Wan Yu Jiaye was responsible for land acquisition compensation, demolition and resettlement, three links and one leveling, and delivered the net land to Company F on August 1, 2010. However, Wanyu Jiaye failed to provide net land on time. The purchase of land cost 1 billion yuan, which led to the lack of funds for F company to carry out three links and one leveling, and the project was put on hold.
In the arbitration, Company F held that Wan Yu Jiaye illegally sold the right to use state-owned land, and the contract was invalid. Wanyu Jiaye advocates that the two parties are legally contracted. On October 23rd, 2020, the Ordos Arbitration Commission made an award and supported Wan Yu Jiaye’s claim. On October 9th, the person in charge of Company F told China Newsweek that the problem has not been solved so far and the company has withdrawn from Ordos market.
A person familiar with the local situation told China Newsweek that Ordos is a typical human society, just as financing in business is usually private lending among acquaintances. In the forest park project, disputes arise, and it is rare for F Company to choose judicial channels to solve them.
Before Hao Zhangang was arrested, Ordos Wanye Real Estate Development Co., Ltd. (hereinafter referred to as "Wanye Company") had been expecting that the dispute between it and Wan Yu Jiaye could be settled through coordination.
On June 11th, 2008, Wanye Company signed the Land Transfer Agreement with Wan Yu Jiaye, and Wanyu Jiaye transferred 74.46 mu of gross land located in the north of Textile Street in Dongsheng District, that is, the D-2 plot of Forest Park Project to Wanye Company, with a price of 500,000 yuan per mu, ensuring that the land use certificate and other related procedures will be handled to Wanye Company.
Shen Shan, the relevant person in charge of Wanye Company, told China Newsweek that the price of 500,000 yuan per mu was actually the lowered price after cooperation. At the beginning of the cooperation, Wan Yu Jiaye promised to transfer the land "three links and one leveling" to Wanye Company at a price of 3 million yuan per mu, and Wanye Company paid a deposit of 80 million yuan. Later, due to difficulties in demolition, Wan Yu Jiaye could not deliver the net land, and Wanyu Jiaye re-signed an agreement with Wanye Company to lower the land price to 500,000 yuan per mu.
Wanyu Jiaye’s land demolition is always not smooth. According to Shen Shan, the main reason is that the asking price of relocated households is getting higher and higher, and "enterprises can’t afford land acquisition compensation". Wu Tian, a retired official of the Land Acquisition Unit of Dongsheng District Land Bureau, also told China Newsweek that with the passage of time, the demolition of the forest park became more and more difficult, and about 1,000 mu of land was finally demolished, which only accounted for about 3% of the total area of the whole project.
In cooperation with Wanyu Jiaye, Shen Shan also found that on August 28th, 2008, Wan Yu Jiaye obtained the land certificate of plot D-2, and on the same day, Golden Eagle Wanjia also obtained a land certificate of plot D-2. Shen Shan recalled that after years of mediation by Jiaye and the government in Wan Yu, the D-2 plot was finally owned by Wanye Company, which spent about 200 million yuan on the project and finally started construction in 2020. Although construction started, there was another problem in the floor area ratio. Shen Shan introduced that when Wanyu Jiaye sold the land to Wanye Company, it agreed that the plot ratio was 4. Now the government department thinks that this is not in compliance with the regulations, and Wanye Company needs to pay about 30 million yuan to the government department for this purpose.
"Hao Zhangang told us that he could help us coordinate the floor area ratio problem. Now that he has been arrested, there is nothing we can do." Shen Shan said.
The bus stop sign of "Forest Park" in Ordos. Photo by Zhao Xiang
The "rich man" created by the forest park project
Wanye Company and F Company are not the only companies that buy forest park land from Wan Yu Jiaye. According to Shen Shan, about 20 companies have bought land from Wan Yu Jiaye, which makes Hao Zhangang’s business bigger and bigger.
On May 18th, 2010, Wan Yu Jiaye Urban Construction Investment Group Co., Ltd., actually controlled by Hao Zhangang, was established with a registered capital of 150 million yuan, with Hao Zhangang holding 95% of the shares and Zhang Zhicheng, the vice president, holding 5% of the shares. According to a publicity material, in 2011, the real estate development area of the Group was about 730,000 square meters, with 300,000 square meters completed and 1.4 billion yuan returned. This publicity material also mentions a "three-year plan": it is planned to develop an area of 1.5 million square meters by 2013 and increase the sales income to 7.5 billion yuan, "to build the company into a first-class real estate company in Inner Mongolia and even the whole country."
An employee of Golden Eagle Wanjia recalled that Wanyu Jiaye originally worked on the 10th floor of Tianyou Building in Dongsheng District, and around 2010, another Wan Yu Jiaye Building was built on Tuanjie Road in Dongsheng District as the group headquarters. A business owner who has been to Jiaye Building in Wan Yu told China Newsweek that what impressed him the most was the lobby on the first floor, with a high ceiling and golden decoration, which looked very luxurious. In Wan Yu Jiaye Building, the access to the office area of Wanjia Group upstairs is an independent elevator. If outsiders want to take the elevator to enter the office area, they need to be remotely controlled by the security personnel upstairs.
With the expansion of business, Hao Zhangang’s ambition is no longer satisfied with the corner of Ordos. Wan Yu Jiaye Urban Construction Investment Group is composed of six branches in Inner Mongolia, with a land reserve of 20,000 mu. Its industries are all over Wuhai, Bayannaoer and Hohhot, among which there are many large-scale projects such as five-star resort hotels, high-grade villas and high-rise residential quarters. An official from Erdos once visited the project of Wan Yu Jiaye in Linhe District of Bayannaoer City. He still remembers a bridge built by Wanyu Jiaye for Linhe District. "We were very surprised when we saw it. The bridge was so beautiful."
The official told China Newsweek that, like the forest park project in Erdos, this bridge in Bayannaoer City is also an infrastructure investment made by Hao Zhangang to win the corresponding construction land. "Hao Zhangang has never been stingy with urban construction in order to get the construction land smoothly." The official said.
Established in February 2001, Beijing Guoyao Wanwei Information Technology Co., Ltd. (hereinafter referred to as "Beijing Guoyao") is represented by Shi Baowei, nephew of Hao Zhangang, whose wife Meng Caixia holds 74% of the shares and the Institute of Remote Sensing Application of Chinese Academy of Sciences holds 11%. Chen Kai (pseudonym), who was the general manager of Beijing Guoyao from 2011 to 2013, told China Newsweek that Beijing Guoyao’s main business was remote sensing surveying and mapping. In those years, he often followed Hao Zhangang on business trips to Inner Mongolia and other central and western regions to talk about cooperation with local governments. As a technician, on the one hand, he was a "platform" for Hao Zhangang; On the other hand, we can also get land surveying and mapping projects from local governments.
Chen Kai said that because Hao Zhangang did not understand remote sensing technology, Beijing Guoyao was more like a real estate company. "But Hao Zhangang had a soft spot for science and technology. At that time, Hao Zhangang said that real estate had no future and should engage in science and technology."
Hao Zhangang’s "New Story of Science and Technology"
Probably since 2014, Hao Zhangang began to enter the technology industry in a big way.
The 2020 annual financial report of Shenyang Xinsong Robot Automation Co., Ltd. (hereinafter referred to as "Shenyang Xinsong") shows that Xinsong Robot Investment Co., Ltd. (hereinafter referred to as "Robot Investment Company") was established on April 17, 2014 by Shenyang Xinsong, Beijing Wan Yu Jiaye Real Estate Investment Co., Ltd. and Huacheng Xinlian (Beijing) Technology Co., Ltd., with a registered capital of 100 million yuan, of which Shenyang Xinsong agreed to contribute 37 million yuan.
Hao Zhangang is the president of robot investment company, and Qu Daokui, founder and president of Shenyang Xinsong, is the chairman of robot investment company. Robot investment company claims to be "excellent intelligent industry investment operator", and has raced around the country in the name of Shenyang Xinsong to build Xinsong robot industrial park.
Zhang Hai, an employee of Robot Investment Company, told China Newsweek that when robot investment companies ask for land from local governments, most of them are negotiated by Hao Zhangang. At present, the company has six industrial parks, which are located in Fuyang, Anhui, Xinxiang, Hunan, Xiangtan, Zhangjiajie, Yangzhou, Jiangsu and Shenyang, Liaoning. Because most of them are located in the suburbs of third-tier cities, the investment situation is not very satisfactory. Zhang Hai said that Hao Zhangang won the construction land through industrial park projects in various places and then resold it to others, such as the "blooming everywhere" model of Ordos Forest Park.
The net profit of robot investment company is very high. Shenyang Xinsong’s 2020 annual financial report shows that as of the end of the reporting period, the total assets of robot investment companies were about 1.72 billion yuan and the net profit was about 230 million yuan, an increase of about 103% compared with the same period of the previous year.
While working in a robot investment company, Zhang Hai said that he had never heard Hao Zhangang mention his past in Inner Mongolia, and his impression of Hao Zhangang was hard work. "We often say privately that his boss is still working so hard. If we had so much money, we would have gone to play." Zhang Hai said.
Hao Zhangang has a bed in the office of the robot investment company in Beijing. He basically doesn’t go home at ordinary times, and he eats and lives in the company. Zhang Hai recalled that even for the New Year, Hao Zhangang was in the office. "He doesn’t smoke or drink, which is not good for women. He lives frugally and eats in the canteen." Zhang Hai said.
The "victim boss" once complained everywhere.
On October 11th, China Newsweek learned from a person close to the police that the case of Hao Zhangang has entered the stage of review and prosecution. Among the 12 gang members arrested by the police, some of them have been released from criminal compulsory measures due to insufficient evidence. At present, the police are supplementing evidence in Beijing and Inner Mongolia.
According to Shen Shan, the person in charge of Wanye Company, the main reason why Hao Zhangang was arrested was the forest park project. In his view, the frequent rights protection of the "victim" boss who bought land in the project is the most direct reason why Hao Zhangang was arrested. In the process of cooperation with Hao Zhangang, many bosses encountered the situation that they could not be demolished and delivered. "Every time this happened, Hao Zhangang always said that he would help find a way. He dragged on for too long until we had nowhere to go and complained everywhere."
Shen Shan recalled that as early as the end of 2020, the audit department entrusted the audit firm to its company to understand the situation of the forest park project and collect evidence of Hao Zhangang’s illegal reselling of land. Dongsheng District Natural Resources Management Bureau cooperated very much and handed over all the documents of the Forest Park Project to the audit department. Shen Shan described that the papers piled up like hills. "At that time, they took away a lot of boxes." In the first half of 2021, investigators from Baotou Public Security Bureau asked him about the situation. "They lived in Ordos for a long time and found many victims to understand."
China News Weekly learned that Hao Zhangang’s arrest was not unrelated to the anti-corruption storm in Inner Mongolia in recent years. Chen Kai, who once worked in Beijing Guoyao, told China Newsweek that Wen Jianhua, the former deputy inspector of the Inner Mongolia Department of Land and Resources, who was investigated in 2018 on suspicion of corruption, bribery, bribery and illegal transfer of land use rights, had close contacts with Hao Zhangang. Wen Jianhua used to be the director of the Bureau of Land and Resources of Ordos City. During his tenure in the land department of Hohhot, he also had many contacts with Beijing Guoyao. "Wen Jianhua usually comes to Beijing, and Hao Zhangang receives it at the five-star hotel. I accompany him and the dining level is very high." Chen Kai recalled.
However, behind the arrest of Hao Zhangang, the beautiful blueprint of Ordos Forest Park project has remained on "paper". A planning document made by Dongsheng District Planning Bureau in September 2007 shows that the planning direction of Forest Park is to build an eco-garden city landmark attraction consisting of high-end residential areas, wildlife parks and grasslands in Inner Mongolia, which is considered to be the "ecological green lung" of Ordos.
On October 2nd, China Newsweek visited the Forest Park. It is located in the southeast of Ordos city, next to the urban area, and its north side is the bustling area of Dongsheng District. The reporter saw at the scene that several unknown roads surrounded the forest park. Most of the dense pines and cypresses on the ground of the park were less than one person high because of malnutrition. Some scattered farmers made a living by opening farmhouses, and some unfinished buildings stood alone in the cold wind. A faded "Forest Park" bus stop sign on the roadside seems to tell people that this project once existed.
(The original title is: 15 years of unfinished Ordos Forest Park: a wealthy businessman’s land business)