Hong Kong 1980: The Savage Era

Chapter 212 [Profit Layout of Trade]

Yan Leduo's move reminded Luo Qihong of the project of nine new industrial buildings built by Jianian Real Estate Company that he had taken a fancy to before. The current price might be even cheaper, even lower than the cost.

So, Luo Qihong summoned Cheng Jianshen and asked about the current situation of Jianian Real Estate Company.

"The situation of Jia Nian Real Estate Company has become even worse, but Chairman Peng Guozhen has extraordinary connections in Hong Kong, and many banks are willing to lend money, so the situation of Jia Nian Real Estate Company has not collapsed."

Cheng Jianshen's eyes darkened, and he changed his tone and said, "But according to my investigation, the rent and profit of Jia Nian Real Estate Company can no longer keep up with the interest to be repaid, and the risk of collapse is getting bigger and bigger. As long as we wait for some time, we can buy what we want at a lower price."

Hearing this, Luo Qihong swept away the unhappiness brought by Yan Leduo and said, "If this is the case, it seems that we can only get it at places like auctions or banks."

"I also found out that Peng Guozhen had private transactions with bank executives and exaggerated the value of the collateral. The most outrageous deal was that Jianian Real Estate Company purchased a piece of land for 260 million yuan and mortgaged it for 1 million yuan." Cheng Jianshen said in a deep voice.

Luo Qihong was a little confused. He thought that only Chen Songqing from Jianing Company was doing such a bold thing. It turned out that many real estate developers were doing this, but Chen Songqing was doing it on a larger scale.

"No wonder so many banks collapsed and were taken over during the turmoil in 73. It turns out they were so crazy." Luo Qihong sighed helplessly. This is just asking for trouble.

"Boss, there's something I want to say but I'm not sure whether I should say it or not?" Cheng Jianshen asked tentatively.

Luo Qihong smiled and said, "There's nothing wrong with saying it, but just don't scold me."

Cheng Jianshen said quickly, "Don't dare! What I want to say is that we are already eyeing Huaguang Real Estate Company, Legu Real Estate Company, Jianing Company, and now with the addition of Jianian Real Estate Company, the market value of these four companies has exceeded 4 billion yuan. I'm afraid the company does not have the power to swallow up these companies yet."

In fact, many inside stories of Jianing Company cannot be found out. This is all judged based on Luo Qihong's memories of his previous life. The same is true for other companies. Therefore, Cheng Jianshen does not think that Jianing Company really has such a big hole that needs to be filled.

The same is true for Jianian Real Estate Company, except that Huaguang Real Estate Company and Legu Real Estate Company are slightly better. However, Cui Baiquan of Legu Real Estate holds a 43% stake and its business is stable. Cheng Jianshen does not think that his boss has any chance to take advantage of it.

"Humph!" Luo Qihong laughed and said, "Jian Shen, no matter how arrogant I am, I dare not take over the debt-ridden Jianing Company. It's just that he has some high-quality properties or land, and I want to take advantage of the opportunity to get some."

"We can also get a bargain from Jianian Real Estate. As for the real takeover of Huaguang Real Estate Company and Legu Real Estate Company, it depends on the situation. In any case, those three Central Commercial Buildings are priceless."

Cheng Jianshen did some calculations and frowned, "Huaguang Real Estate Company alone needs 3 million yuan in cash. If we acquire Legu Real Estate Company, we will probably still be heavily in debt. Aren't you worried that Zhaoan Real Estate Company will become the next Jianian Real Estate?"

"Jian Shen, have you forgotten that the crash is coming soon? 3 million yuan to buy Huaguang Real Estate? I'm afraid it won't take that much. As for Legu Real Estate, it depends on whether Cui Baiquan's family is willing to sell it. Zhaoan Real Estate doesn't have that much money, so we can work with De'an Securities and me to take it over privately."

"Boss, Legu Real Estate Company's business is so stable, the Cui Baiquan family may not be willing to sell it. The possibility is too low. I think it is better to focus on acquiring Huaguang Real Estate Company. One Huaguang Real Estate Company is enough for us to digest." Cheng Jianshen still insisted on being prudent.

Luo Qihong was unwilling to argue with Cheng Jianshen, because the future situation was not decided now. If there were major changes, no matter how much he said now, it would be useless.

"Let's talk about this later. We won't discuss it now. The purpose of calling you here is to let you keep an eye on Jia Nian Real Estate Company. You should be familiar with its properties so that it will be easier to make a move in the future."

"Yes, don't worry!" Cheng Jianshen thought for a moment, "Do I need to report to you regularly?"

Luo Qihong responded, "Have someone compile it into a report and send me a copy every month."

The information from these investigations will be compiled into a book, but what Luo Qihong is talking about here is the useful information compiled into a report, not those messy information reports.
Luo Qihong came to Hexiang Trading Company to take charge and deal with the accumulated official business.

Sitting opposite him were the four giants of Hexiang Trading: Zhang Zuyao, manager in charge of American business, Yan Guantong, manager in charge of European business, Wu Rongtin, manager in charge of Australian and Southeast Asian business, and Wen Jiatao, manager in charge of East Asia.

"Let's start with Manager Wu. How is the cooperation with Kaida Baoye Company? Are there any difficulties?" Luo Qihong called out.

"The current cooperation is OK, and the other party cooperates with us very well." Wu Rongtian reported, "However, these people are not very familiar with the development of trade business, which has caused some obstacles to our work, and they are obviously wary of us."

Luo Qihong waved his hand and said, "It doesn't matter. The Southeast Asian market will eventually be returned to Ding Xiongzhao and his team. You should still focus on Australia. The company will have bigger moves in the future."

Luo Qihong does not think highly of the trade business in Southeast Asia. Firstly, the trade is basically monopolized by Hengchang Bank and other trading companies. Secondly, the economy of Southeast Asia is not as good as that of other places.

"Yes! Boss, you are right. The market in Southeast Asia is not very good and sales have not been able to start. Last month, toy sales were only 51.3 pieces, of which Cabbage Patch dolls accounted for 7%, and the profit was only about HK$230 million." Wu Rongtin said.

"Once we recover the costs invested in the Southeast Asian market, we can move into the Australian market. Your task is not only to sell toys, but also to get involved in Australia's wine and mining trade." After careful consideration, Luo Qihong still felt that he should say something practical to paint a rosy picture for Wu Rongtin.

Sure enough, when Wu Rongtin heard this goal, his eyes lit up immediately and he said happily, "Boss, don't worry, I will make the investment in Southeast Asia pay off as soon as possible."

Luo Qihong nodded, then turned his gaze to Wen Jiatao and asked, "How is the market in East Asia?"

Wen Jiatao was a little surprised, as if he had not expected that it would be his turn to report so soon. "Kada Baoye's toys are not very popular in the Korean and Japanese markets. It may be that our publicity is not enough. I expect that in the second half of the year, sales should be able to increase by 30%."

"The current monthly sales volume is 92 Cabbage Patch dolls, which brings in a profit of 168 million yuan, for a total profit of 293 million yuan."

As things stand now, the mainland market has just been developed and sales are almost negligible. After all, few people can afford the rather expensive toys.

"For East Asia, the main trade deficit is still in electronic products. Manager Wen, you must find a way to intervene in the trade of electronic products. It doesn't matter how much market share we get, as long as we open up the market first," Luo Qihong instructed.

"If the trade market for electronic products is opened, which regions will we dump them in?" Wen Jiatao asked.

Luo Qihong smiled and said, "You need to discuss this among yourselves. Your other three colleagues are the best collaborators."

Luo Qihong's meaning was very clear. If a dumping site was needed, the profits from the traded goods would need to be shared with other departments. This would benefit everyone.

Of course, the company that made the most profit was Hexiang Trading Company, whose employees only received generous bonuses and commissions.

Wen Jiatao glanced at his three colleagues and felt that it was time to have a chat with them.

Japan has a strong electronics industry, with many large companies and even more small companies, so it was easy for Wen Jiatao to find trade sellers.

The profits from electronic products are very lucrative. For example, the electronic watches and quartz watches dumped by Japan in Hong Kong have very lucrative profits. Many of the small wealthy people in the past made their fortunes by selling these things.

(End of this chapter)