Shi Yuzhu's plan to build a house ran aground one year ago: the giant chose silence internally

Chen Zhe Chi Youlei

Giant Network builds houses for employees. This plan, which has been stranded for more than a year, has become popular again.

A media in Shanghai recently said that Giant had already set up a team to deal with relevant matters. The company would pay for land to build houses, sell them to the company's R&D staff at cost, and can mortgage.

"We are noncommittal," said Ma Quanzhi, the head of Giant's online public relations department. What we have learned is that this highly concerned plan actually ran aground more than a year ago.

A giant game developer, who did not want to be named, said, "Building a building is a myth. It was said several years ago. It's not a drama."

Shi Yuzhu has always advocated kinship culture among giants. A few years ago, he paid 1.5 billion yuan from his own pocket to invite construction master Tom Mayn to build the park in Songjiang. More than 1000 employees of the giant can enjoy star rated cinemas, bars, saunas, gyms, swimming pools and fitness rooms.

"We have always attached great importance to the treatment of employees and have been improving. I think private entrepreneurs should try to care for employees." Shi Yuzhu once told the media that from the perspective of enterprise development interests, improving the treatment of employees is the most effective way to reduce enterprise costs.

Although there are also six six storey staff dormitories in the park, which can basically cover all staff, the annual employee survey of Giant shows that the housing problem has long been the top concern of employees. It seems reasonable that Shi Yuzhu, the "big parent", would have the idea of providing housing at cost to solve employees' worries.

A middle-level giant who was once responsible for building recalled that in August 2010, a major leader of Shanghai, accompanied by Songjiang District, visited the Giant Group Park. The leader was very satisfied with the good operation mode of the talent apartment that the company provides for employees.

Talent housing is the main topic of Shanghai Municipal Government in recent years. At the "Two Sessions" held in Shanghai on January 12 this year, Yu Zhengsheng, Secretary of the Shanghai Municipal Party Committee, also stressed that he had been thinking about two difficult issues: first, how to solve the housing problem of young talents, and second, how to further expand the opening up. "Shanghai's development must open the door to attract excellent talents. But it is very difficult to attract and retain talents. The cost of various factors in Shanghai is very high, especially housing. In recent years, we have tried a lot of ways to solve the housing problem, but it is not enough, and more innovative breakthroughs are needed." Yu Zhengsheng said at the meeting.

The characteristics of the online game industry where the giant is located also made it a very urgent choice to provide employees with low-cost housing plans at that time.

Between 2009 and 2010, the giant performed strongly in the industry. In 2010, the giant became the "most profitable company" by virtue of Journey, with a net profit margin of more than 60% and a peak net profit margin of more than 80%.

But at this time, many small companies are springing up like mushrooms. "In those two years, the vicious poaching in the industry was very serious. When many employees changed jobs, their titles and salaries doubled. And experienced R&D personnel were even more attractive," said a giant insider.

For IT companies, especially online game companies, the R&D team of game products is actually the soul of company development. Once the backbone is removed, the entire product development will be paralyzed. A person familiar with the matter said, "Not all employees will enjoy this benefit in the housing construction plan that year, but only some core R&D personnel."

After receiving the affirmation from the leaders of Shanghai, the Giant executives had the hope that the relevant departments of Songjiang District would support a piece of residential land outside the park in the form of public auction, which would be constructed and developed by the Giant Group and sold to the company's R&D personnel at cost.

As one of the largest investment promotion projects in Songjiang District in recent years, Giant Group has received great support in local development. When the giant settled down in Songjiang in 2008, the local leaders held office meetings for many times and asked for all-out support for its development. This time, Giant's talent apartment was praised by senior leaders, "Songjiang District leaders seem willing to consider this issue."

People familiar with the matter said that the giant formed a group to study housing construction.

In the draft plan, the investor is not the giant network of listed companies, but companies controlled by Shi Yuzhu, such as giant investment. "Because in history, the board of directors and shareholders of the company did not support such seemingly unprofitable investment projects."

However, in the process of further negotiation, Giant and Songjiang District failed to reach an agreement on some issues, such as the area where the company initially hoped to acquire land, and there was no suitable residential land transfer. On the land price, the two sides also have some differences. The negotiations were therefore stalled.

There is also a version circulating in the street: several officials in charge of the land department in Songjiang District were exposed to corruption scandals in 2010 and 2011, and the giant's land acquisition was also affected. However, this statement was denied by the above-mentioned project leader.

But the giant did not give up. When the company wrote to Shanghai leaders twice in 2010 and 2011 to report the situation, it mentioned the matter of acquiring land and building buildings, but there has been no following.

In response to the rumor that the giant once again seethed, the final choice within the giant was silence.