Hong Kong 1980: The Savage Era

Chapter 183 [Exposed? ]

Luo Qihong has sold all of his 21% shares in Zhaoan Real Estate Company, and at the same time acquired Zhao Qicheng's 14.93% stake in Zhaoan Real Estate Company. He then sold off his shares again, raising a total of 1 million yuan, of which 6 million yuan was profit.

The profit from the shares acquired from Zhao Qichen was only over 2 million yuan, which was far less than the profit from the shares held by Luo Qihong himself.

加上德安证券投资公司的投资项目分红1亿3千5百万元，罗齐鸿再支出1千万元，筹集3亿1千万元支付会德丰公司的全部尾款。

At this point, Luo Qihong's cash became 7 million yuan, and he owed Bank of East Asia 3 million yuan. The debt of Zhaoan Real Estate Company was also expected to reach 2 million yuan, with a debt ratio of nearly 1%.

These data all show that Luo Qihong has achieved good results since 81. As long as he clears his personal debts and reduces Zhaoan Real Estate's debt to 1 million yuan, Luo Qihong can finally take a break.

However, soon, Luo Qihong thought of bottom fishing after the big crash. Zhaoan Real Estate Company had to reserve a large amount of funds for bottom fishing, which would require another big move.

Zhao Qichen has already taken control of Yonghua Company, and its market value has stabilized at 2 million yuan. The company's internal purge has also stopped, and it has begun to sort out Yonghua Company's debts according to Luo Qihong's wishes.

Zhao Qichen was very decisive. He persuaded Gao Kaiquan of the Landlord Association and Lin Luoxun of Yiren Real Estate Company to let Yonghua Company issue new shares to him. In this way, his shareholding reached 40%, making him the largest shareholder of Yonghua Company.

Such a large amount of shares certainly does not fear any challenge from anyone, even people like Lin Luoxun and Gao Kaiquan.

However, Zhao Qicheng's personal debt also increased significantly, and his private company has stopped some projects, but it was worth it, after all, he got a company with a market value of 2 million yuan.

Zhao Qicheng's ability is average, but he knows the current situation very well. Even though he has a grudge against Luo Qihong, he still dares to use Luo Qihong's advice. Of course, this was a decision made after careful consideration.

Siu On Real Estate Company Office

Chen Zhilong submitted a document about the medium-sized real estate company Jia Nian, which contained the development of Jia Nian Real Estate Company in Southeast Asia and Hong Kong in recent years.

Jia Nian Real Estate Company was listed in the bull market in 72, and began to move overseas in 73, developing Subang Jaya in Kuala Lumpur, the capital of Malaysia. It continued to sell off various assets in Hong Kong and a large amount of funds were transferred.

In 73, the oil crisis broke out and the world economy went into recession. Malaysia's rubber and rice exports dropped sharply. The sales in Subang Jaya were disappointing and the development plan was slow. As a result, the profits of Jia Nian Real Estate Company declined year after year, and in 77, it only recorded 440 million yuan.

By the late 70s, when Hong Kong's economy recovered, major Chinese real estate companies had already bought a large amount of property and land at low prices during the sluggish real estate market. When Jia Nian Real Estate returned to Hong Kong at this time, it no longer had its original position and had to be reduced to a medium-sized real estate company.

The current Jianian Real Estate Company has brought back a large amount of funds from Southeast Asia. Although it has no chance to develop large plots of land, it has a large number of small plots of land, which is a bit of a tactical strategy of "lack of quality, but make up for it with quantity".

"The debt ratio of Jianian Real Estate Company is very high, as high as 78%, and it is still increasing." After reading the information, Luo Qihong said to Chen Zhilong, Cheng Jianshen and Kang Wenyi.

Luo Qihong had no interest in this kind of debt-ridden medium-sized real estate company. If he had not mentioned it at the beginning, his subordinates would not have submitted such a report.

"Peng Guozhen, the boss of Jianian Real Estate Company, is a capable person. He has always wanted to regain the status that Jianian Real Estate Company had when it was first listed in 72, so he is so radical." Chen Zhilong said seriously.

"Boss, do you want to acquire Jianian Real Estate?" Kang Wenyi asked.

Luo Qihong leaned back in his chair and smiled gently, "I'm not interested in a company with such a high debt ratio, but some of the properties under Jia Nian Real Estate are good."

The three of them immediately understood what Luo Qihong meant, that he wanted to take advantage of the opportunity to take over some properties and land.

Cheng Jianshen persuaded, "Boss, didn't you say that it's not suitable to buy properties for the time being?" "I did, but some properties are cheap enough, such as industrial buildings." Luo Qihong spread his hands and said, "The rent can fully pay the bank's interest. This is a good project."

Cheng Jianshen nodded and said, "Jian Nian Real Estate Company does have a number of newly built industrial buildings in its hands. The locations are very good, in the Yau Tong and Kowloon Bay areas."

"We can buy it at a price lower than the market price, but we need to buy more." Chen Zhilong said, "The current debt ratio of Jianian Real Estate Company is so high that it must be in a hurry to recover funds and repay those bank debts."

Luo Qihong nodded slightly and said, "Let Jianshen take care of this matter. The Finance Department will spend 1 million yuan. The loan amount cannot exceed 5% of the property itself. According to the current price of industrial buildings, we should be able to purchase 4-6 industrial buildings."

Cheng Jianshen thought for a moment and responded, "According to the data, Jianian Real Estate Company has 9 newly built buildings. Can we buy them all? If we buy them all, the price can be lowered a bit."

"How much money is needed?" Luo Qihong asked without thinking.

For Zhaoan Real Estate Company, 1 or 2 million is not a big sum. What Luo Qihong is interested in is that the bank loan business has not yet been tightened. In 83, banks will tighten their loan business, and it will not be so easy to get a loan at that time.

"2 million yuan is enough." Cheng Jianshen said after a quick calculation.

"Okay, I'll ask the Finance Department to prepare the money." Luo Qihong waved his hand.

"Boss, there are quite a few real estate companies on the market that are developing too rapidly recently. The debt ratio of these companies is generally not low. In addition, the current real estate market is not very good. There are already signs of being sold." Chen Zhilong reminded.

Chen Zhilong saw that Luo Qihong had made a lot of profits from Yonghua Company again, and Cheng Jianshen had taken away some of his power, so he immediately wanted to take back the power through other projects.

Kang Wenyi saw some signs, but he was the weakest among the three, and he did not have Luo Qihong's trust, so he could not compete at all.

But he could see that Luo Qihong didn't want to acquire any more real estate companies.

"Boss, I think the company is not suitable to acquire other real estate companies at the moment for two reasons."

"First, Zhaoan Real Estate Company has already reached its target value. Second, the current real estate market is sluggish, and the newly acquired company may be a loss. The excess funds can be invested in stock market securities or in some properties to increase the company's market value and enhance the company's strength."

Chen Zhilong looked at Kang Wenyi who suddenly spoke up. This person has always been a nobody. Why did he think of rebutting today? Was he trying to take advantage of the opportunity to share power?

Luo Qihong did not give Chen Zhilong a chance to speak, and said, "I think what Manager Kang said makes sense. The company should observe the market situation first. However, Director Chen should not relax and continue to collect information about peer companies. There may be good opportunities there."

Chen Zhilong swallowed the words that were about to come out of his mouth. Luo Qihong's meaning was very clear. He didn't want him to dominate the world, otherwise he would not have promoted Cheng Jianshen and Kang Wenyi.

"Yes! I will try my best to collect information."

The next morning
A few days ago, Luo Qihong had sent personnel to negotiate with the detective agency that was following Li Qiqi, and bribed the detective with 10 yuan to ask him to forge photos and information to deceive Gong Guoyan.

I thought the matter had come to an end, but who knew that Gong Guoyan actually hired two detective agencies to track Li Qiqi.

Since Luo Qihong and Li Qiqi had a close relationship, the detective naturally took photos of the two of them together.

(End of this chapter)