Hong Kong 1980: The Savage Era

Chapter 133 [Sell, Sell]

A high-end restaurant in Causeway Bay
Xie Jiyuan, a member of the Landlords' Association, sat there with a serious expression on his face, not at all tempted by the delicious dishes wafting from the table.

"Mr. Luo, we agreed on 2 yuan per share and a market value of 4 million yuan. Why did you issue new shares without authorization? If it is raised to 2 yuan per share now, the market value will be 5 million yuan, while Hongpu Real Estate Company (which has successfully changed its name) has only assets of 2 million yuan, and the market value is nearly doubled." Xie Jiyuan said in a deep voice.

"Issuing new shares is a private matter of Hongpu Real Estate Company. Do we need to discuss it with the assisting company? Mr. Xie is not too strong." Luo Qihong sneered, "Don't forget who is the boss. Who pays you? It's not you who pays me!"

"."Xie Jiyuan frowned, wanting to refute but unable to speak.

"I'm not a 'scoundrel'. I will give you what I promised, but I hope you can raise the stock price to 1.8 yuan, and the 1 million shares will be deposited into my account immediately." Luo Qihong didn't want the landlord to become desperate and affect his next layout.

"Mr. Luo, the 5% equity we agreed on should be 1250 million shares." Xie Jiyuan certainly wanted more.

Luo Qihong snorted and laughed, "What did you agree on? It seems that you haven't even achieved the 2 yuan share price. You were just questioning me about the issuance of new shares, and now you want 250 million more new shares. Mr. Xie has a good plan."

"Okay, if we raise the stock price to 2 yuan, please ask Mr. Luo to fulfill his promise. If we fail to raise the stock price to 2 yuan per share, we will only need 1 million shares." Xie Jiyuan was serious, his eyes full of anticipation.

Luo Qihong put away his smile and said, "I will only give you three days. If the stock price doesn't rise to 3 yuan per share in three days, our cooperation will end."

"I don't have that much time to wait for your operation, and your operation has disappointed me. I thought you were professional, but... Humph!"

In fact, Xie Jiyuan had been the only one following up on the affairs of Hongpu Real Estate Company. The forces he could mobilize were very limited, so his contribution was not as great as imagined.

Friday, October 10

Hung Pu Properties announced once again that it has spent HK$4 million to acquire Lok Fu Building at 8 Fa Yuen Street in downtown Kowloon, adding 201 square feet of rental area to the company.

此时的红浦地产公司资产值超过3亿1千万元，但是负债也超过了1亿6千万元，负债率到达41%，与之前的负债率14.8%差别有些大了。

Although it had a debt of 1 million yuan, the Paramount Company also provided it with 6 million yuan in fundraising funds, which was equivalent to getting a commercial building in the city of Kowloon for free, which was also an unexpected surprise.

In fact, a debt ratio of 41% already means that the company is in relatively good operating condition among real estate companies of the same type, and the properties it holds are all properties with great potential, such as commercial buildings in Central and Wan Chai.

Xie Jiyuan worked very hard, but unfortunately the share price of Hongpu Real Estate Company stopped at 1.9 yuan and it was difficult to make any progress.

As a result, the Landlord Association only received 1 million shares of Hongpu Real Estate Company from Paramount Company, with a market value of 1 million yuan.

After Luo Qihong's three acquisitions of commercial buildings, the asset value of Hongpu Real Estate Company has reached a very good level. Therefore, many peers have come to inquire about taking over Hongpu Real Estate Company.

Therefore, Li Yude hurriedly joined forces with Lin Luoqi to meet with Luo Qihong and planned to acquire Hongpu Real Estate.

In fact, before meeting with these two people, Paramount Company had already sold 950 million shares on the stock market, raising funds of 1769 million yuan, barely recovering the costs it had paid before.

Today, Paramount Company holds 48% of the shares of Hongpu Real Estate Company and still firmly controls the company.

"Ah Hong, Rocky and I have decided to jointly acquire Hongpu Real Estate Company, but our current funds are only 1.4 million yuan, which can buy about 30% of the shares, but we hope to hold 44%."

"That is to say, there is still 14% of the equity that requires some time to raise funds. Can you be flexible?" Li Yude asked in a humble manner.

"Of course there is no problem. According to the rules, such a large amount of funds can be paid within a certain period of time." Luo Qihong thought for a moment and said with a smile, "You can complete the final payment before the end of December, which means you have two months to raise funds."

"Ah Hong, you misunderstood what I meant. The 14% equity transaction amount may take a year to be paid. Of course, we will definitely pay the profits generated from it." Li Yude said with a twinkle in his eyes.

Luo Qihong frowned and fell into deep thought. Paramount Company still had a debt of more than 1 million yuan, including 5 million yuan from Wei Kee Building.

The 1.4 million yuan paid by Li Yude and Lin Luoqi was enough to repay most of the debts of Paramount Company. According to the requirements of the bet, the debts of Paramount Company had to be controlled within 6 million yuan, so 1.4 million yuan was enough to achieve the goal.

"Okay! You pay 1.4 million yuan first, and the remaining 14% equity will be repaid one year later, that is, before 83. The interest generated needs to be paid monthly." Luo Qihong said seriously.

Soon this money will have nothing to do with him, but before it does, he will try to raise the share price of Paramount Company and strive to obtain half of the funds for the 31% stake in China Gas Company.

"Ah Hong, we know that your company has strong operational capabilities. Although the current debt ratio of Hongpu Real Estate Company is not high, we still hope to continue to expand the company, reduce the debt ratio and acquire more assets. Do you have any good suggestions?" Li Yude asked sincerely.

In fact, Li Yude was asking Luo Qihong how to make money and expand.

It seems that Li Yude is eager to expand or solve his debt problem.

"There is no better solution at the moment. Both your individual and company potentials have been exhausted. If you force it, it will be very risky." Luo Qihong pursed his lips. "Perhaps you can use it once to raise the stock price, sell off part of your holdings, and then issue new shares through the board of directors."

"Such an operation will allow the company to reap most of the profits, and a small portion of the profits can also flow into your pockets, but it will also weaken your control over Hongpu Real Estate."

"Can we increase the profitability of individuals and companies by acquiring companies that are not doing well, reorganizing assets, and then selling them?" Lin Luoqi asked. Good guy! He wants to learn the special skills directly!

Luo Qihong smiled slightly and looked at Lin Luoqi and Li Yude with deep eyes, "Do you want to imitate the rise of Hongpu Real Estate?"

Li Yude and Lin Luoqi nodded, their eyes filled with the desire to study.

"This is difficult, not because the method is difficult to learn, but because it is difficult to encounter a target company like Hongpu Chemical Company. In addition, to convince the banks, we must make them feel that the company is beyond saving and they can take the risk of letting others save it and get back the profits that belong to them," Luo Qihong explained.

"Or you have a large amount of capital and assets injected into the company, forcibly revitalize the company, drive up the stock price, and then make profits from the stock market and buyers."

"What if we have plenty of time to operate?" Li Yude grasped the key point.

"Of course it is possible. We can repay the debt through ordinary 'unwinding' and the amount of injected funds will be greatly reduced." Luo Qihong answered honestly.

"Ah Hong, I know that Paramount is about to be sold. Can Hongpu Real Estate and Zhaoan Real Estate cooperate? If so, I think it will be a win-win situation." Li Yude pleaded.

What kind of cooperation? This is clearly asking me to guide you, Luo Qihong thought to himself.

The situation of Zhaoan Real Estate Company is not very good. There is very little capital on the books, and most of its properties are mortgaged.

According to Luo Qihong's plan, after selling the Paramount Company, Zhaoan Real Estate Company needed to settle the debt of more than 1 million yuan. At the same time, he also needed to personally gain profits from Zhaoan Real Estate Company to repay the loan for the acquisition of China Gas Company.

"Okay! But I hope Zhaoan Real Estate Company can get some low-priced new shares issued by Hongpu Real Estate, about 5%. What do you think?" Luo Qihong did not forget to seek benefits for himself.

Li Yude and Lin Luoqi looked at each other and nodded.

"Okay, then let's have a pleasant cooperation!" Li Yude raised his wine glass and said with a smile on his face.

"It's a pleasure working with you!" Luo Qihong and Lin Luoqi said in unison.

Thursday, May 10

Paramount announced that it would sell its 44% stake in Hongpu Real Estate to Dehe Real Estate. Dehe Real Estate paid 1.4 million yuan in advance, and the remaining 6 million yuan would be settled within one year.
The 4% stake in Hongpu Real Estate Company that Paramount still held was sold under Luo Qihong's instructions, with a return of 1862 million yuan.

百乐门公司账上有资金1亿6千万元左右，罗齐鸿准备将偿还其中的1亿3千万元债务，剩余的3千万元会收购一幢价值5千万至6千万元的商厦。

As so many favorable news came out, the stock price of Paramount Company began to rise significantly, rising by 8 cents per share that day, and the market value increased by tens of millions of yuan, approaching the high market value of 7.5 million yuan.

This market value was somewhat different from what Luo Qihong had expected, but Luo Qihong no longer had many ways to continue to raise the market value because he was very worried that Li Zhaoji would suddenly take action against China Gas Company.

Therefore, he had to quickly recover the funds from the sale of Paramount Company and acquire China Gas Company.

On the second day, Friday, October 10, at the Paramount Office

Su Qishan came in with a report and, at Luo Qihong's signal, sat on the sofa next to him.

"Boss, this is the information of the Capital Centre Building, 13 Jardine's Bazaar, Causeway Bay." Su Qishan placed the document on the coffee table in front of Luo Qihong.

Luo Qihong put down the newsprint, picked up the document and read it carefully.

Jinghua Center Building is a young commercial building built in 72. It is 22 stories high and has a floor area of ​​27.2 square feet. The first and second underground floors are garages, the first to sixth floors are shopping malls and shops, and the remaining 1 floors are offices.

The owner is asking 5 million yuan, and many real estate developers are interested in acquiring the property, so there is fierce competition.

Luo Qihong thought for a moment and asked Su Qishan, "How much do you think we should bid to acquire this Jinghua Center Building?"

This was Luo Qihong's intention to test Su Qishan.

Su Qishan hesitated for a moment and replied, "5 million yuan! This is the price given based on the transaction record of the most expensive building in Causeway Bay."

"Okay, then you directly offer the owner 5 million. If he hesitates, immediately raise the price to 5 million. If he still has concerns, you can leave and look for other suitable targets." Luo Qihong had a faint smile on his face.

"Okay! I will do as you tell me." Su Qishan nodded.

Compared with shopping malls and shops, office buildings in Causeway Bay are the least valuable, and the vacancy rate is even higher than that in Kowloon city. What Luo Qihong values ​​are the 6-story shopping mall and shops.

Although Causeway Bay did not take over the number 1 position in the retail industry in Jordan at that time, the retail industry was developing very rapidly. In addition, commercial buildings such as Windsor House built by the Hong Kong Land Company on the site of the original milk ice factory boosted the commercial development of Causeway Bay. At that time, the prospects of Causeway Bay were even greater than those of Wan Chai.

(End of this chapter)