Reborn in Tokyo: From Heiress to Global Tycoon

Chapter 379 Seibu's Nose

January 3, 1991, afternoon, Niseko Gokurakukan.

The snow had been falling since noon, and a layer of whitish frost had accumulated on the outside of the glass dome. The maintenance crew had just come down from the edge of the roof, and several workers were still wearing their winter coats. The snowmelt brought in by their boots had already melted into a puddle of grayish-white mud in the logistics passage.

Tourists cannot see these.

What they saw was a snowfield, hot springs, lights, and a towering glass dome. People were taking pictures in the lobby, and the laughter of skiers drifted in intermittently from the automatic doors. Although there were far fewer people than in its heyday, the atmosphere of "Hokkaido's new-style resort paradise" described in magazines was still quite intact.

In the operational office, no one could laugh.

Nozaki spread the heavy oil consumption chart for December on the table, and placed the records of defrosting the glass dome and replacing the seals next to it. The last document was a copy of the transfer data package that Saionji Construction had handed over to Seibu.

"Calculate it again."

The assistant standing by the table looked down at the calculation sheet, speaking in a low voice.

"We've already done the calculations three times. December's heavy fuel consumption is 21% higher than the stable operation forecast in the data package. The cost of dome defrosting and seal maintenance has also exceeded the average monthly budget for the snow season."

Nozaki did not speak.

The assistant added another sentence.

"If the trend continues in January, the maintenance budget will be burned through before the snow season is even over."

The office was silent for a few seconds.

Another gust of snow pattered against the windowpane. The lights from the dome shone brightly through the frost, but Nozaki felt that every minute they shone was a waste of money.

Indeed, it is burning money every single second.

He picked up the transfer package and turned to the page on winter energy consumption models.

"The price is high during the trial operation period, but it will drop after the operation stabilizes."

"The glass dome insulation structure has been optimized with composite layers to adapt to operation during the snowy season in Hokkaido."

"After the initial commissioning of the underground constant temperature system, energy consumption can enter a stable range."

When I first read those sentences, they were beautiful and persuasive. The information provided by Saionji Construction was complete enough that the bank was willing to accept it, and no one within Seibu was willing to ask any unpleasant questions about this project, which was just the right thing to do to support the Hokkaido resort layout.

The Paradise Hall has now been taken over.

As the economic situation worsens, turnover is decreasing, while operating costs are increasing.

Damn it! Wasn't the construction of Saionji supposed to be known for its quality?

Nozaki closed the document bag and picked up the phone.

"Connect with the Tokyo Engineering Management Department."

The assistant looked up.

"Now?"

"Now," Nozaki said, looking at the reports on the table, "tell them that the operating costs of Gokurakukan during the snow season and the transfer of the data package are significantly different."

"To Tokyo send a formal note to the Saionji construction site, requesting details on winter energy consumption models, dome maintenance costs, and insulation material replacement records."

The assistant hesitated for a moment.

"What about the wording?"

"Use annual audits."

Nozaki threw the pen back onto the table.

"Let's ask them first and see how they respond."

……

That evening, at the Saionji Construction Cost Management Headquarters.

Gondo sat behind his desk, looking at the photocopy of the note sent by the Seibu Engineering Management Department.

The document was worded very politely.

Every question seemed to be at the engineering and operational level, merely part of the annual cost review. But Quan Teng could see what these questions were really asking.

Why hasn't the consumption of heavy fuel oil decreased?

Why haven't the maintenance fees for the dome been reduced?

Why did the snow season model in the data package that was transferred back then look so much better than the current operational reports?

Gondo turned to the last page of the document, his gaze lingering on the confirmation section from that year's Cost Management Headquarters.

His seal is there.

Gondo put away the photocopies with some annoyance.

The young lady has returned to the country; things will get better as long as I see her...

The phone rang.

Gondo glanced at the number and answered it.

"Manager Gondo, the engineering management department asked if we should hold off on Seibu's request for now. Tokyo just received it today; we'll wait for the young lady's instructions before proceeding—"

"Don't press down."

There was a moment of silence on the other end of the phone.

Gondo put the note back on the table.

"Follow the procedures. The Engineering and Technology Department will verify the original model, the Operations and Data Room will verify the maintenance records, and the materials supplier will verify the insulation material batches. The Cost Management Department will not make a conclusion for now."

"But Seibu asked about transferring the data package..."

"I said, let's check the process first."

Gondo's voice was colder than usual.

"Whoever has the original records should hand them over. Do not supplement, do not change, and do not make explanations for anyone."

The person on the other end of the phone responded.

After Gondo hung up the phone, the office fell silent again.

He leaned back in his chair and pinched the space between his eyebrows.

Let's use those suppliers to stall for a while.

The letter has been sent.

He was waiting for Saionji Satsuki's decision after returning to Japan.

Before that, he could neither admit it nor deny it. Admitting it would be like handing the hilt of a sword to Seibu; denying it would be like writing his name on a piece of paper in Fujita Inspector's office beforehand.

This is not something that can be brushed off with a simple "red bean paste private Marseille".

So the only option is to push the ball down.

Push to the original record.

It was passed on to the technical department.

It should be pushed to those who actually fill in the forms page by page with the material, energy consumption, and maintenance costs.

Gondo looked at the note that was being pressed down on the table and suddenly felt that those few pages of paper were very light.

As light as snow.

It fell silently, and by the time people realized what was happening, the door was already buried.

……

When Hamano Materials Industries' Tokyo branch received the verification request, it was almost closing time.

Keizo Hamano was preparing to leave for his first client meeting after the New Year. When his secretary brought in the documents, he only flipped through two pages before hanging his coat back on the hanger.

"The car is for the vice president's use."

The secretary paused for a moment, then quickly responded and left.

Hamano spread the documents out on the table.

The request from Saionji Construction was a process verification requirement. The request from Seibu Engineering Management Department was a more subtle technical consultation. The two departments addressed each other differently, but were asking the same question.

Why is the cost of the snow season at Gokurakukan so different from the original model?

Hamano laid out the original insulation material grade specifications, the first revision table of winter energy consumption, the maintenance records of the dome seals, and the cost specifications in the transfer package.

After watching for half an hour, he actually breathed a sigh of relief.

There were no basic errors.

The material batches match, and the acceptance records also match. The energy consumption model itself has a calculation basis, and the high maintenance costs can be explained as being due to initial testing during the snow season. The original data package for the construction of Saionji Temple wasn't so foolish as to leave a loophole that's easy to spot.

That's where the trouble lies.

Every item can be explained, and every sentence is passable.

High energy consumption is a common occurrence during initial commissioning, defrosting and maintenance are subject to seasonal fluctuations, material replacement is a result of on-site optimization, and high maintenance costs will decrease after stable operation.

These words and phrases are all quite sound when viewed individually.

Gokurakukan is not an empty shell that hasn't been tested by the market. It was run by the Saionji family and made money.

In the first month after Seibu took over, the underground casinos, restaurants, and auction houses still had impressive book profits, so impressive that the exorbitant fuel costs, maintenance fees, and depreciation were temporarily reduced to "the costs that luxury facilities should have."

At that time, no one was willing to question whether the cost model was too optimistic.

Because the profits can still cover it.

But now, revenue is down, room occupancy is down, and auction sales are also down, while expenses are stuck at the same level, even worse than the forecasts in the data package.

Hamano picked up a pencil and drew a line next to "decline after stable operation".

The problem isn't that this statement didn't make any sense back then.

The problem is that its existence is predicated on the premise that the Pleasure House can maintain its initial exorbitant profits.

The secretary knocked and came in.

"President, Seibu is still waiting for a call."

Hamano did not look up.

"Tell them that there is no false material technically."

Just as the secretary was about to write it down, she heard him add another sentence.

"However, there is a significant discrepancy between the actual energy consumption curve and the stable operation projections in the transfer data package. The initial model was overly optimistic."

The secretary paused for a moment.

"Should we include that sentence too?"

"Write."

Hamano put down the pencil.

"The version given to Saionji Construction only answers 'process verification.' The version given to Seibu Consulting retains this sentence. Do not mention Gondo, nor should it mention Saionji Construction's internal responsibility."

"clear."

Hamano looked at the documents and remained silent for a while.

He certainly knew what Seibu wanted.

But he absolutely dared not offend Saionji.

We can only drag this out and take it one step at a time.

……

The rain in Akasaka lasted from morning until afternoon.

In the conference room of Seibu Realty's external consulting firm, Shimada sat at the end of a long table with three documents in front of him.

The first item is the maintenance cost of the Paradise Pavilion for the past three months.

The second document is the process verification requirements that Saionji Construction transferred to the supplier.

The third document is a technical summary from Hamano Materials Industries.

The head of the consulting firm is standing at the table, giving a report.

"The construction of Saionji Temple was neither directly explained nor denied."

"Gondo's instructions are that the Engineering and Technology Department, the materials suppliers, and the Operations Data Office should first verify the original records, and the Cost Management Department will not draw any conclusions for the time being."

Shimada flipped through Hamano's summary.

"No pressure either?"

"no."

"Has Gondo been in contact with Hamano recently?"

"On December 27th, at an exchange meeting of the Japan Building Materials Association, the two chatted for fifteen minutes. The content is unclear. There has been no confirmed direct contact since then."

Shimada nodded.

The brief initial contact was originally just ordinary social interaction. But now, placed after the exchange with the Gokurakukan (Paradise on Earth), the meaning has changed.

Gondo must have already sensed the risk.

But he neither handed the torch to Seibu nor closed the door to Saionji Construction.

He was waiting for someone to come back.

Waiting for Saionji Satsuki to return.

Shimada continued reading the summary.

"How does Hamano judge?"

The person in charge stated, "Technically, we cannot determine if it's fraudulent. However, there is a significant discrepancy between the actual energy consumption curve and the estimates in the transferred data package. The initial model was overly optimistic."

Shimada read the sentence twice.

Leaning towards optimism.

well.

These three words are more appropriate to be put on the table than "mistake".

Errors need to be proven, while overly optimistic views only need to be questioned.

"What about the First Kangyo Bank?"

"I haven't formally asked yet. However, the bridge loan for the Paradise Pavilion is with them. If there are discrepancies in the operating costs in the annual audit report, they will require supplementary explanations."

Shimada closed the file.

This matter is no longer as simple as just the Paradise Pavilion burning money.

Gokurakukan's financial losses are partly Seibu's fault. Customer traffic, fuel prices, the receding bubble, and winter maintenance can all be attributed to poor business decisions.

However, if the model in the transferred data package is optimistic from the beginning, the matter takes on an additional layer of meaning.

The projects following the merger of Saionji Temple have left room for reinterpretation.

What Saionji Satsuki is doing right now is taking advantage of the Leningrad cryogenic project to reclaim all the parameters for the cold regions, cryogenic storage, and Hokkaido projects.

She moved too fast.

Once she meets with Gondo, completes the information, and closes the explanation, Seibu will only have an ugly business report left.

"Prepare to send a briefing to Chairman Tsutsumi's secretariat."

The person in charge immediately lowered his head to take notes.

"What about the content?"

"Gokurakukan's operating costs during the snow season continued to deviate from the model in the transferred data package. Saionji Construction did not directly explain this and referred it to the supplier process for verification."

"Hamano Technical Summary believes the model is overly optimistic. It recommends initiating a re-review of operating costs under the guise of an annual audit, while temporarily refraining from contacting Gondo and naming Saionji Construction as responsible."

Shimada paused for a moment.

"Finally, one more point. First Quanye Bank may passively inquire about the risks of loan extensions."

"Yes."

At that moment, there was a gentle knock on the conference room door.

The secretary came in and placed a note next to Shimada.

"News from Narita. Saionji Satsuki has returned to Japan, and Endo has also gone to the airport."

The person in charge instinctively shut his mouth.

Shimada did not show any surprise.

He simply placed the note next to Hamano's summary and glanced at it for a moment.

"Don't touch Gondo yet," he said. "Let him seek solace with his master."

The person in charge nodded.

The secretary didn't leave and added:

"And there's also Osaka. A PR firm in Kitashinchi recently inquired about the winter maintenance costs and insulation material suppliers for Gokurakukan. They asked a roundabout question, but they did manage to get in touch with Hamano Materials Industry."

Shimada raised his eyes.

"White Water Club?"

"It cannot be confirmed yet, but that firm did work for two real estate companies controlled by Masaaki Urakami last year."

Shimada leaned back in his chair.

The sound of raindrops tapping on the glass was faint. The car lights on the street below were stretched into long lines by the rain, like someone drawing a line on Tokyo's account book with a wet finger.

He was certainly aware of the power struggle between the Hakusuikai and the Saionji family.

After their last card was blocked by Kyoto, they are now looking for a new card.

They could no longer ask whether Saionji was an outsider.

Then we can only ask Saionji himself whether he is safe or not.

Shimada looked at the three documents on the table.

The operational reports of the Paradise Pavilion.

Verification of the construction process for Xiyuan Temple.

Hamano's technical summary.

Individually, all three documents are just ordinary business documents.

When put together, they create a new flavor.

Perhaps the Seibu and Hakusuikai have a basis for joining forces.

"The briefing was first sent to Chairman Tsutsumi's office," Shimada said. "We also let them know in Osaka that Gokurakukan does indeed have a review summary."

"Then let me put it more tactfully: we... might have a possibility of cooperation."

The person in charge looked up at him, then quickly lowered his head.

"Yes."

Shimada reopened Hamano's summary, his gaze lingering on the phrase "the model is overly optimistic."

The rain is still falling outside the window.

Tokyo and Osaka are hundreds of kilometers apart, yet when the same rain falls, water always flows into the same ditch.