Hong Kong 1980: The Savage Era

Chapter 169 [Cancel the status of a listed company? ]

Run Run Shaw was a notoriously stingy person, and Luo Qihong didn't know much about this person. It would be difficult to get a comprehensive understanding of him based on some rumors from his past life. It would be better to let Sammo Hung and Sam Sham, who had dealt with Run Run Shaw, talk to him. Perhaps there would be some unexpected results.

In the 80s, Hong Kong films began to explode. Movies with themes such as martial arts, young and dangerous, and comedy emerged and spread throughout Southeast Asia, creating a group of regional superstars.

At this time, cinema chains should be making a profit as sure as can be. After all, the profit-sharing rules have not yet appeared. Now cinema chains all adopt the "bottom line" rule, that is, no matter how well a movie performs at the box office, it has nothing to do with the theaters, and the producers need to pay a certain fee.

Although Shaw Brothers Film Company has declined, it still has hundreds of theaters under its umbrella and has considerable influence, so the guarantee fee will naturally not be small.

Luo Qihong wanted to propose a "dividend system", but unfortunately it would affect the interests of his peers because the dividend system would make their income unstable and they would have to spend more energy to adjust the broadcast time and frequency of movies, which would require more manpower and resources.

In fact, Luo Qihong had his eyes on the cinema chains owned by Shaw Brothers Film Company. These properties were priceless, and the cinemas in the city alone could create a high-quality small real estate company.

Run Run Shaw himself made it into the list of Hong Kong's top ten tycoons in the 80s and 90s thanks to these theaters and cinemas. It is conceivable that the value of these theaters is extraordinary.

However, this is not the best time. First, Luo Qihong has no spare funds, and second, Run Run Shaw has not completely let go of these industries and may ask for too much.

In the end, Lai Yude agreed to the conditions proposed by Luo Qihong and was willing to sell the Jinghua Center Building in Causeway Bay to Yonghua Company at the original price of 5 million yuan, but the selling price would be 6 million yuan when it was announced to the public.

However, Luo Qihong himself needs to purchase 20% of the shares of Hongpu Real Estate Company held by Li Yude's family at the current market price. The agreement stipulates that Luo Qihong can only support Li Yude and cannot give up or support others to become the chairman of the board of directors of Hongpu Real Estate Company.

The acquisition fund was as high as 8 million yuan, but Luo Qihong chose to complete it in one lump sum. Although the equity acquisition was very low-key, it was still widely reported by the ubiquitous reporters. Luo Qihong wanted to re-enter Hongpu Real Estate Company and compete with the largest shareholder Li Yude for control of Hongpu Real Estate Company.

All of a sudden, a large number of investors bought Hongpu Real Estate Company's shares, and the market value soared from 4 million yuan to 4 million yuan.

Many real estate developers saw the opportunity to make profits through acquisitions, so they came to visit Luo Qihong, hoping that he could resell 20% of Hongpu Real Estate Company's shares to them. They were willing to pay a premium, with the highest premium being 2%.

In fact, these real estate developers saw that Luo Qihong was willing to "come back to his old love", so they thought that they could make huge profits by acquiring Hongpu Real Estate Company.

Moreover, the asset value and market value of Hongpu Real Estate Company are indeed not bad and are definitely worth investing in.

The release of a series of good news stimulated Yonghua Company's stock price and its market value skyrocketed to more than 1 million yuan.

Some people also saw the "hollowness" of Yonghua Company, which was built entirely on debt. However, with Luo Qihong's title as the company's doctor, those shareholders simply ignored the "truth".

After all, Luo Qihong has never failed since his debut, and investors who are willing to believe in Luo Qihong have made a lot of money, so retail investors naturally don't want to miss the opportunity to make money.

A coffee shop in Central
It was around two o'clock in the afternoon, and many white-collar workers in the museum were taking a break or drinking a cup of coffee to refresh themselves for work in the afternoon.

Luo Qihong took a sip of coffee and said to Zhong Wei across from him, "It is not time to sell Yonghua Company yet. Mr. Zhong is a financial elite. He should be able to see that Yonghua Company is currently very heavily indebted. I still need to continue restructuring its assets."

Selling Yonghua Company now would be a loss for Luo Qihong, because he had already purchased 20% of the shares of Hongpu Real Estate Company from Li Yude at a high price, and he could not sell it within a certain period of time and could only transfer it back to Li Yude.

If the Yonghua project cannot make a profit of more than 8 million yuan, Luo Qihong will be in trouble, after all, the 8 million yuan in cash is tied up in those shares. "The only solution to Yonghua's debt is to raise funds for rights issue or issue new shares. I guess Luo Sheng wants to use the first method, raising funds for rights issue." Zhong Wei said directly, "The investment will probably be even more. Why not sell it now? We are willing to use million to buy all of Luo Sheng's Yonghua shares. How about it?"

"This price is not good." Luo Qihong knew that the visitor had bad intentions. "Mr. Zhong wants to acquire Yonghua Company. I welcome it, but the time for sale will never be now, and it will not be at this price."

"I think Mr. Zhong knows very well how much energy and financial resources I have spent to increase the asset value of Yonghua Company. A selling price of only 1 million yuan is not enough to recover my losses."

Luo Qihong was not afraid of the Landlord Society's mischief. The Landlord Society was just a group of brokers who knew some financial operations. They could not make things difficult for Yonghua Company in the real estate industry, let alone forcibly acquire Yonghua Company which was firmly controlled by the controlling shareholder.

"If Mr. Luo thinks the price is not suitable, we can talk slowly. There is no need to reject it so hastily." Zhong Wei held a smile on his face. "To solve Yonghua's debt, we must rely on the stock market and shareholders. But if Yonghua loses its status as a listed company, then Yonghua will probably be in trouble, right?!"

Before he finished speaking, Luo Qihong frowned and said coldly, "It seems that Mr. Zhong is determined to acquire Yonghua Company. Isn't he afraid of retribution?"

Retribution naturally refers to Luo Qihong's revenge.

"Haha!! Luo Sheng is too serious. This is a normal business practice. There will be no retribution." Zhong Wei thought about it, looked at Luo Qihong and said, "If there is retribution, Luo Sheng will probably not be able to escape it."

Luo Qihong maliciously acquired many companies and offended many people, including some powerful peers.

Those colleagues were waiting for an opportunity, an opportunity to take advantage of Luo Qihong's misfortune. Once Luo Qihong fell from power, they would definitely rush up to take revenge.

However, Luo Qihong is different from them. Their revenge will result in losses, while Luo Qihong's revenge will result in profits.

"You want to 'kill one thousand enemies and lose eight hundred of your own?' Make acquisitions from the stock market so that everyone's shareholdings add up to more than 75%, so that the committee and the Securities and Exchange Commission can revoke Yonghua's listing status?" Luo Qihong immediately figured out Zhong Wei and his men's plan.

“Clap, clap!” Zhong Wei clapped his hands with a smile. “As expected of the ‘company doctor’, you guessed our plan right away. We have already obtained support from Standard Chartered Bank, so we will not be short of funds.”

Luo Qihong was used to being threatened, so he said with a smile, "If you do this, you will destroy Yonghua Company, and your losses will be huge. The Landlord Association will not be able to afford it. You still have allies, right? Why don't you tell me, Mr. Zhong?"

"Of course, Mr. Zhong doesn't have to tell me, but I can easily find out."

"Then Luo Sheng, go check it out." Zhong Wei said coldly, "According to my investigation, the reason why Luo Sheng used asset restructuring and debt restructuring to operate the company several times and then sold it at a high price was to make up for the huge loan brought by the acquisition of China Gas Company."

"If Luo Sheng continues to tangle with us, I'm afraid it will be even more disadvantageous to Luo Sheng. Ten Yonghua companies are no match for the China Gas Company."

"Humph!" Luo Qihong said indifferently, "Mr. Zhong's investigation is very detailed, but you overlooked one thing. I am in debt of 7 to 8 million yuan, and it is impossible to make up for it completely by selling this company at a high price."

Zhong Wei calmed down after hearing this. After a moment, he felt that Luo Qihong was trying to scare him. "Oh, what channel can make 7 or 8 million in just a few months?"

"There's no point in us bickering like this, let's just fight it out in the stock market." Luo Qihong stood up with a grim look on his face, said 'goodbye', and left.

(End of this chapter)