Hong Kong 1980: The Savage Era

Chapter 216 [What Rumor]

Feng Tianzhang vaguely felt that Luo Qihong was not so determined to acquire the printing company. In addition, the property's assertion made him feel uneasy. He also felt that the price was about right, and he was tempted to agree on the spot.

But thinking that he could wait a little longer and perhaps get a better price, Feng Tianzhang stopped talking about the acquisition and started chatting with the Luo brothers.

Back seat
The Luo brothers sat together as the motorcade passed through the undersea tunnel and headed towards their residential areas in the Mid-Levels.

"Ah Hong, why do I feel that Feng Tianzhang doesn't want to sell Tianzhang Printing Company to us and is waiting for a good price?" Luo Qixing had a worried look on his face. He was very satisfied with Tianzhang Printing Company.

Luo Qihong nodded and said, "Brother, it is common to compare prices from three different stores. Although we can make an offer, it depends on what Feng Tianzhang thinks."

"In fact, Feng Tianzhang wants to use those properties as capital to sell at a high price. We don't need to pay attention to these things. We can let Feng Tianzhang take back the business."

"Brother, don't forget what kind of business I am in. Properties worth millions are not enough to fill my teeth. If you want properties, I can ask Zhaoan Real Estate Company to find you some 'cheap, beautiful and decent' properties."

Luo Qixing thought about it and retorted, "I don't really want those properties, I just see that there are so many properties and some of them are eye-catching."

"Well! If Tianzhang Printing Company can't get it, we still have two alternative companies." Luo Qihong looked at Luo Qixing and said, "Brother, you have to do it yourself. According to today's negotiation steps, the price should not exceed 5% of the premium. We can discuss the rest and act accordingly."

The main reason is that Luo Qixing is impatient and it is easy for him to reveal his bottom price during the negotiation process, which is very disadvantageous.

The next morning
Luo Qihong saw a report in the newspaper about Qiu Degen's acquisition of Rediffusion Television. Qiu Degen, chairman of the Far East Group, purchased 50% of the shares of Rediffusion Television from the British-owned Voice Group and successfully took control of Rediffusion Television.

At the same time, Far Eastern Group announced that Rediffusion Television would soon be renamed Asia Television.

The report did not specify at what price Qiu Degen acquired the 50% stake, but Luo Qihong guessed that the price Qiu Degen paid should not be high.

Because there are only two TV stations in Hong Kong at present, Rediffusion Television and TVB, and TVB accounts for 90% of the Hong Kong TV market, while Rediffusion Television has less than 10% of the market share.

ATV has been making losses year after year. There are not many new films released so far. It has been broadcasting old films from the 60s and 70s, and its programs are not new enough.

The Husheng Group has long wanted to get rid of this burden, so they should not ask for a high price. Qiu Degen of the Far East Group is not a good man, so he will not offer a high price.

In the 60s, Qiu Degen was involved in real estate and entertainment industries, and he and his friends got involved in film production. Unfortunately, his wife and his friend's couple suffered a plane crash, so he had to stop.

This strong man also runs a bank and has been involved in a lawsuit with CITIC Bank. It seems that the lawsuit has not been concluded yet.

Luo Qihong knew that the profit of TVB in 78 was still more than 2 million yuan, but last year (81) the profit had exceeded million yuan. It was obvious that Qiu Degen had his eyes on the TV station's profits.

You should know that a medium-sized real estate company like Huaguang Real Estate Company only has an annual profit of more than 1 million yuan, and the profits of TV stations are more stable, unlike the real estate industry which fluctuates up and down.

Therefore, in Luo Qihong's view, television stations are second only to high-quality enterprises such as the Electric Light Company and the China Gas Company and are worthy of investment.

However, with the existence of a huge competitor like TVB, ATV still needs to invest a lot of money to supplement its assets and personnel, and its programs also need to be updated, otherwise it will still be a big money-loser.

Luo Qihong was certainly interested in getting involved, but unfortunately he could not defeat a strong man like Qiu Degen, and he did not have enough funds to support the rise of the TV station.

However, when he has enough funds in the future, he will still take over a TV station. Regardless of whether it is profitable or not, he will use it to expand the influence of his family and prevent others from bullying him.

As the Sino-British negotiations in September approached, the news reports became more and more disorganized, with most of the reports being comments on this aspect. After all, Hong Kong was still the territory of the British, and the pro-British faction had the upper hand. No matter how the mainland news papers explained, not many citizens were willing to believe them.

After all, a number of companies and factories owned by unscrupulous and black-hearted capitalists were confiscated during the founding period of the People's Republic of China. Such deeds naturally became a handle for smearing and attacking.

Therefore, newsprint has repeatedly weakened citizens' confidence in the mainland and caused people to be uneasy.

Many wealthy people have started thinking about selling their assets and emigrating overseas. If such actions were to happen on a large scale, it would be impossible for properties to stabilize their prices.

Luo Qihong had some expectations about the situation and was mentally prepared, but he was still a little upset to see the situation now.

Fortunately, Zhaoan Real Estate Company and private companies have already sold a number of properties. Now the remaining properties are of high quality and are also the foundation of the company, so there is no need to sell them to recover funds.

Soon, Kang Wenyi pushed the door open and saw Luo Qihong immersed in the newsprint, so he stepped back and knocked on the door.

"Come in!"

"Boss, the company has received a sum of funds from Dean Securities Investment Company. What are your plans?" Kang Wenyi asked.

Luo Qihong thought about it and realized that the current stock market situation was not good, and transferring too much funds to Japan was not a good thing, as it would easily attract the attention of other institutions.

However, the capital reserves of Siu An Real Estate Company have not yet reached the target, but there will be a capital raising and share offering which will just fill the planned reserve amount.

"Put it in the bank and collect interest. The current situation in all industries is not good." Luo Qihong gave the order, touching his chin.

"Boss, why don't you follow Dean Securities to invest in overseas markets? Although it will take a little longer to reap the rewards, the profits are huge," Kang Wenyi suggested.

Originally, Kang Wenyi was not worried about the struggle for power and wanted to be a small transparent person among the senior management of Zhaoan Real Estate Company. Unfortunately, Cheng Jianshen and Chen Zhilong started fighting, and now someone was targeting his position. He was worried that if he did nothing, he would become a victim of the office struggle.

Therefore, he wanted to gain Luo Qihong's respect and support, or at least keep his current position.

Luo Qihong didn't quite understand Kang Wenyi's thoughts, so he shook his head and said, "We don't have such plans at the moment. Do we have any properties with lesser qualifications?"

Kang Wenyi thought for a moment and replied, "The properties worth 2 million yuan that were previously acquired from other companies are still there, including some shops in downtown Kowloon. Does the boss want to sell these properties?"

Kang Wenyi is a senior executive of Zhaoan Real Estate Company. Of course, he is aware of Luo Qihong's assessment of the real estate property situation. The current goal of the company is to hold a large amount of cash flow, rather than bottom fishing as rumored by the outside world.

"Well! Except for On Lok Yuen Building and Dongchang Building in Central, and Kashima Building in Wan Chai, all other properties can be sold. Try to sell them at the market price and avoid losses." Luo Qihong thought for a while, "If it is lower than 9% of the market price, don't sell it. We will just continue to hold it."

"Yes!" Kang Wenyi nodded, his eyes flickering, as if he wanted to say something.

Luo Qihong asked, "Is there anything else? If so, just say it."

Kang Wenyi glanced at Luo Qihong and asked, "Boss, have you heard any rumors about the company?"

"What rumor?" Luo Qihong asked in confusion.

(End of this chapter)