Hong Kong 1980: The Savage Era

Chapter 203 203 [Harsh Conditions]

The plan states that the Li family will return the 14.7% stake in Hongpu Real Estate Company held by Luo Qihong, which means returning 7% of the shares. However, the Li family will still spend 3 million yuan to acquire the 6.3% stake in Hongpu Real Estate Company held by Luo Qihong.

As previously agreed, the shareholding plan of the new company Dehong Investment is that the Li family holds 90% of the shares and Luo Qihong holds 10%.

Dehong Investment Company raised 1 million yuan, of which the Li family contributed 9 million yuan and Luo Qihong contributed 1 million yuan. Dehong Investment will hold 34.9% of the shares of Hongpu Real Estate Company, of which the Li family contributed 31.41% and Luo Qihong contributed 3.49%.

This plan was slightly changed, rejecting part of the previously agreed plan to allow Hongpu Real Estate Company to issue 34.9% of the shares. This would naturally be more beneficial to the Li family.

The Li family can pay Luo Qihong 7 million yuan less in cash, reduce the family's debt, and even take the opportunity to sell some Hongpu Real Estate Company shares, recover funds, and make profits from other investment projects.

But it was not a good thing for Luo Qihong, because the 1 million yuan he had earned was gone. Even if he sold those stocks on the stock market, it would take some time for Luo Qihong to get back the 1 million yuan.

"The plan is good, but most of the profits will go into your pockets. It would be better for me to take the 1 million yuan that belongs to me." Luo Qihong looked at Li Bingjun and said with a smile.

"Don't worry, Mr. Luo! Although the so-called raising of the stock price is not mentioned in it, we can sign another agreement privately to raise the stock price of Hongpu Real Estate Company to a certain price within a certain period of time. If it cannot be raised, the 1 million yuan gap caused by Mr. Luo will be made up by us." Li Bingjun continued, "This is very beneficial to Mr. Luo. To put it bluntly, it means giving Mr. Luo 3.49% of the shares of Hongpu Real Estate Company."

"Ms. Li is really eloquent. It's obviously in the best interest of you, but you say that I'm getting a great bargain. I didn't get these 3.49% shares for free, and it was Zhaoan Real Estate Company that made a great effort to raise the stock price. Without the support of Zhaoan Real Estate, I think you would have a bigger headache." Luo Qihong directly broke through the paper and said without any concealment.

Li Bingjun countered, "3.49% of the shares are worth 1 million yuan. We can't just give such a large sum of money to Luo Sheng. This plan is indeed more beneficial to us, but Luo Sheng can also get enough benefits. This is a win-win plan."

Luo Qihong suddenly found Li Bingjun very attractive at that moment. She exuded the unique aura of a strong woman in the workplace, which made him want to kiss her. However, when he recalled Li Bingjun's background and abilities, he stopped himself.

"Okay, these shares will not be wasted. I agree to this plan." Luo Qihong nodded.

"OK! Then we will go to the law firm to sign the contract later." Li Bingjun said.

"Wait, I have something else to ask." Luo Qihong smiled and said, "It's very simple. I don't want the balance, but I don't want to take out the money I've already paid. It's troublesome to transfer it back and forth. It's better to divide the equity directly to you at the original price."

Li Bingjun frowned slightly, thought about it for a while, and thought it was feasible. It could even allow the family to earn a few million more yuan. "Okay, let's do the deal according to what Luo Sheng said."

Luo Qihong added, "In the future, if Dehong Investment has any stock and securities investments, it can also be handed over to De'an Company. After all, Dehong Investment is not specialized in securities and stock investments."

De'an Company currently does not have a large business volume. Although it is already medium-sized, it needs to attract more business if it wants to have influence in the same industry. Dehong Investment Company is more or less a piece of meat.

Li Bingjun agreed immediately. These were just trivial matters and there was no need to refute Luo Qihong's opinion and make him unhappy.

After the contract was signed, Luo Qihong asked Zhaoan Real Estate Company to announce the good news that it would cooperate with Hongpu Real Estate Company to develop projects and invest in Hongpu Real Estate Company. At the same time, the market spread the news that Zhaoan Real Estate Company would sell half of the equity of Anleyuan Building in Central to Hongpu Real Estate Company.

Such concessions made investors believe that Luo Qihong was ready to invest heavily in Hongpu Real Estate Company and that the stock price of Hongpu Real Estate Company was about to take off.

As a result, investors began to flock to the stock market and snap up shares of Hongpu Real Estate Company. At the close of the day alone, the stock price rose by more than 12%, and the market value increased by more than 5 million yuan, approaching the 5 million yuan mark.

Huaguang Real Estate Company Board Meeting
The meeting was still initiated and chaired by Zhao Shizeng, and all directors attended the meeting.

Zhao Shizeng looked around, somewhat dissatisfied with the noise in the conference room, and said, "Everyone, our meeting is about to begin."

Before he finished speaking, the directors stopped whispering and looked at Zhao Shizeng. It can be seen that Zhao Shizeng's prestige in the board of directors is not low, which may be the reason why Zhao Shizeng has been in charge of Huaguang Real Estate Company for many years.

"Dear directors, you all have a detailed report on the company's profits in 81. I won't go into details. The company's overall profit last year was over 1 million yuan, with a net profit of 6 million yuan."

"Considering the project development and operating costs this year, I plan to take out 1 million yuan for dividends. Let's vote on it."

Zhao Shizeng put his ten fingers on the table and made a cross, with a domineering look of a superior between his brows. It seemed that this was just a routine inquiry and he did not give the directors a chance to refute.

Seeing that many directors raised their hands in favor, Zhao Shizeng smiled slightly, "Okay, unanimous approval! Don't worry, the company still has a lot of land to develop, and the profit this year is expected to be no less than 1 million yuan."

"Why is it more than 4 million yuan lower than last year? I think everyone has some predictions about this year's market. This year's market conditions will definitely not be as good as last year's, so the profit will be lower, which is inevitable."

"If you have any doubts, you can ask Mr. Luo Qihong, a rising star in the real estate industry, to explain it to you."

Zhao Shizeng could certainly explain that bringing Luo Qihong out could better appease people's hearts, prove that there was nothing wrong with his statement, and also serve as an attempt to increase his prestige.

The directors had heard of Luo Qihong's tough style in the real estate industry. If even Luo Qihong was convinced, then the directors should also be convinced. Luo Qihong understood Zhao Shizeng's calculations and did not feel disgusted, because Zhao Shizeng's approach was beneficial to him and in line with his plan.

Noticing the directors' unanimous glances, Luo Qihong knew there was no room for refusal. "I fully agree with what Mr. Zhao said. According to my personal judgment, the land market in 82 will be worse than that in 81, but it will still be OK overall. It's just that the profit will decline a little, which is still good for the company."

“I think the land market will become increasingly difficult in the next few years, and land development still needs to be arranged as soon as possible so that all directors can get more dividends.”

He has selfish motives. As long as Huaguang Real Estate Company vigorously develops its land and builds commercial and residential buildings, it will inevitably have to borrow money from banks and shoulder a heavy burden, which will provide him with greater opportunities to take action in the future.

Then Zhao Shizeng revealed the news that De'an Securities Investment Company helped to make a profit of 2 million yuan from the acquisition of Weidong Real Estate Company.

"Luo Sheng is indeed sharp, and he is worthy of being a hero in the real estate and investment circles. He made a profit of 2 million yuan in just two months."

"We are very relieved to have Mr. Zhao and Mr. Luo making money for the company. We will need to rely on you two more in the future."

The directors flattered Luo Qihong as if they had no shame at all.

Luo Qihong quickly said a few humble words. He knew that these directors were very snobbish. If you could help them make money, they would of course be in a good mood and flatter you. But if you lost money, I'm afraid the words they would say would be more unpleasant than cursing your mother.

However, Luo Qihong still needs their support for the time being, especially he needs these people to take control of the board of directors of Huaguang Real Estate Company to lay the foundation for future acquisition.

"I also plan to sell some of the properties in exchange for further development funds for the company. Dean Securities Investment Company will be responsible for the investment. If we can get a 6% profit, it will be great for the company. Next year, you can get more dividends." Zhao Shizeng suggested and explained.

It is obvious that the 1 million yuan in dividend funds were originally included in the development plan. Now that Zhao Shizeng has used it for dividends, he naturally has to raise this money from elsewhere to fill the hole.

At this time, the directors looked at each other, obviously disagreeing with Zhao Shizeng's proposal.

Luo Qihong didn't want to be the first to speak out, but unfortunately the "traitor" arranged by Zhao Shizeng began to speak out and was the first to agree with Zhao Shizeng's proposal.

Luo Qihong was worried that the directors would turn to Zhao Shizeng, so he said without hesitation, "Mr. Zhao, I think the current stock market is not very good. Weidong Real Estate Company's acquisitions are not common, and it is difficult to say that there will always be profits, so there is no need to sell the company's properties to invest in the stock market."

When Zhao Shizeng saw that other directors turned to Luo Qihong after Luo Qihong opposed it, he suddenly felt a headache. He knew that Luo Qihong was not so easy to fool. With Luo Qihong's leadership, these directors would definitely be much bolder.

"Mr. Luo, I also know this is the case. However, the current market situation is not as good as last year. I also want to find another way to make money for the company so that all the directors can benefit by the end of the year." Zhao Shizeng argued.

"De'an Company has 1 million yuan of funds from Huaguang Real Estate Company, plus 2 million yuan in profits, a total of 1 million yuan, which is already a considerable sum of money. It can leverage most of the investment projects. There is no need to increase the amount." Luo Qihong continued to refute.

In addition to the discussions and disagreements of the directors, Zhao Shizeng's second proposal was rejected by Luo Qihong. However, Luo Qihong was very considerate and took the lead in approving several subsequent small proposals, which relieved Zhao Shizeng's depression a lot. Otherwise, Luo Qihong was worried that Zhao Shizeng would make things difficult for him in the future.

in the office
Zhao Shizeng seemed to have forgotten that Luo Qihong had just taken the lead in opposing him, and he entertained Luo Qihong with a friendly face.

"What do you think of the Zhang Zhushan family, the major shareholder of Wheelock & Company, and the second largest shareholder and operator John Madden?"

Hearing this, Luo Qihong looked at Zhao Shizeng in confusion. He couldn't understand what Zhao Shizeng meant. What was he trying to do?
But Zhao Shizeng did not explain the meaning of the question, and smiled and said, "My father attaches great importance to the shipping industry, and the current situation in Hong Kong is not optimistic. If it is taken over, my father is worried that the situation will be like 49 or 50 years, so he now hopes to continue to reduce his holdings in Huaguang Real Estate Company."

Suddenly, Luo Qihong understood what Zhao Shizeng meant. He wanted to give up his position as the major shareholder of Huaguang Real Estate Company, but the management rights would still remain in the hands of the Zhao family.

Although there is not much difference from the current position of the second largest shareholder, Luo Qihong can lay a railway or even an airport in the future, and Huaguang Real Estate Company can become his pocket.

"How much does Zhao Sheng's family plan to reduce their holdings? How much do they want me to increase?" Luo Qihong asked, suppressing his excitement.

Zhao Shizeng smiled slightly and said, "Don't worry, Luo Sheng! We have conditions, Luo Sheng might as well listen to them before making a decision."

Seeing Luo Qihong nodded, Zhao Shizeng continued, "The condition is that all the shares held by Luo Sheng can only support my family to run Huaguang Real Estate Company. It is not allowed to support other people, including Luo Sheng himself, and the shares that Luo Sheng takes over must be purchased at a 5% premium based on the current share price."

"Considering that Luo Sheng holds 12% of the shares, my family plans to sell 20% of the shares to you. However, my family will buy back the shares from the stock market afterwards. We will buy back about 10% of the shares and will not hold less than 15%."

"If my family withdraws its investment from Hong Kong, the management rights of Huaguang Real Estate Company will be returned to Luo Sheng, but Luo Sheng will need to transfer about 20% of the company's dividends to my family every year."

These conditions were quite harsh, and they even wanted to take away the dividends. In other words, Luo Qihong only got a vague promise, and the Zhao Congyan family took away all the benefits.

(End of this chapter)