Hong Kong 1980: The Savage Era

Chapter 24 024 [Yiren Real Estate] (Please collect)
Saturday, May 12

Due to the busy days, Guan Jiahui was a little overwhelmed, so she chose to take a rest on this day and went shopping with her best friend. Luo Qihong was the only one left in Hehong Real Estate Company.

"I heard that a big company came to North Point and caused chaos in North Point. I hope your business didn't suffer any losses?" came a familiar voice with a hint of teasing in its tone.

Luo Qihong turned to look at the person who came, confirmed that it was Lin Luoqi, and said with a smile, "There must be some losses, but they are not big, and you are taking care of my business, so they can't ruin it."

"Have a cup of tea first. I bought this from a tea shop at a high price, 500 yuan for half a pound." Luo Qihong poured Lin Luoqi a cup of tea.

Lin Luoqi smelled the tea and said, "It smells good, but I still prefer coffee."

Luo Qihong didn't respond, but asked with a smile, "What good business do you have to recommend to me today?"

Lin Luoqi shook his head. "No, it's not business, but it can be called business. I'm going to attend a bankruptcy auction. I came to ask if you are interested in joining me?"

Luo Qihong was a little confused. Lin Luoqi knew that his funds were all in the stock market. Even if he went to the auction, he would not be able to buy anything. However, he could broaden his horizons. But what was Lin Luoqi's purpose?
Seeing Luo Qihong's unusual expression, Lin Luoqi understood Luo Qihong's concerns, so he smiled and said, "There are some auction items that I want to take secretly. I don't want other people to know, especially my family."

This aroused Luo Qihong's curiosity, but he did not ask further. Instead, he agreed, "Okay! It's just right for me to go and see the auction. Maybe I can use this experience in the future."

Lin Luoqi joked with Luo Qihong with a smile, then explained the time of the auction, some details that needed attention, and gave Luo Qihong a list of items that needed to be auctioned.

After Lin Luoqi left, Luo Qihong picked up the auction list and looked at it carefully. The company that Lin Luoqi specifically mentioned was also on the list. The item being auctioned was 18% of the shares of Yiren Real Estate Company.

Luo Qihong didn’t know whether Yiren Real Estate Company was a listed company, but he guessed that Lin Luoqi wanted to leave the family and used Yiren Real Estate Company as a cover.

So, driven by curiosity, Luo Qihong called Zhang Taotao of HSBC, "Hello! Is this Mr. Zhang Taotao? I'm Luo Qihong!"

"Help me check a company. I want to know if Yiren Real Estate Company is a listed company? OK, I'll wait for your call."

Soon, Zhang Taotao confirmed that Yiren Real Estate Company was a listed company, but its current situation was not very good and it was on the verge of bankruptcy.

Luo Qihong ran to HSBC and asked Zhang Taotao for a document on Yiren Real Estate Company. He also learned that the current share price of Yiren Real Estate Company was 0.5 yuan and the total share capital was 5300 million shares.

This document shows that Yiren Real Estate Company has good asset value, but there is no record as to why it has evolved into its current state.

Luo Qihong shook his head helplessly and sighed, "I don't know how many years ago this information is, and it has not been updated."

Zhang Taotao argued that "since 72, there have been too many companies listed in Hong Kong. In 1972 alone, 65 companies were listed. If you count carefully, it was in the second half of 72. It is difficult for banks to update the information of all listed companies in a timely manner."

Luo Qihong nodded to show his understanding, but asked, "Does Mr. Zhang understand some acquisition rules?"

Zhang Taotao was secretly shocked. "Does Luo Sheng want to acquire Yiren Real Estate Company? Since Yiren Real Estate Company is facing the risk of bankruptcy, the company's debt must exceed 7% of its assets. It is no longer able to repay its debts normally, and it is even difficult to pay the interest."

Luo Qihong felt that Zhang Taotao knew something, so he asked, "According to Mr. Zhang, how much money do you need to invest to save Yiren Real Estate Company?"

"Mr. Luo, saving Yiren Real Estate Company does not necessarily require funds. The stock market is hot right now. If assets of equal value are injected into Yiren Real Estate Company, the company's asset value will increase and its debt ratio will decrease. Perhaps it can raise funds from the stock market to issue shares." Zhang Taotao continued to explain, "I personally think that in order to save Yiren Real Estate Company, at least 800 million in funds or 800 million worth of property assets are needed."

800? !

Luo Qihong didn't think that Lin Luoqi had such a huge amount of funds, and this was the minimum. If he wanted more funds and a higher success rate in restructuring assets, he would probably need 1000 million yuan.

He thought about buying shares of Yiren Real Estate Company at a low price, waiting for Lin Luoqi's restructuring to succeed, and making a fortune from it. Unfortunately, there was a high possibility that Lin Luoqi would fail.

Because this was Lin Luoqi's private action, his family was unaware of it. The huge capital demand was a difficult hurdle, and it was also the first difficulty in running Yiren Real Estate Company.

The price of 3 yuan per share is very tempting, and the profit is so high that even if it fails, it seems that the loss will not be much money. Luo Qihong thought to himself.

In the end, Luo Qihong held back. He did not have enough funds and needed to cash out shares of Hang Lung or Wing Tai Development Company from the stock market before he could buy Yiren Real Estate Company. This was not worth the loss.

The former two companies are sure-fire profits, while the latter, although very profitable, also has high risks. Perhaps it would be better to wait until the first two stocks are sold off and cashed out before buying shares in Yiren Real Estate Company.

A few days later
Luo Qihong received news that the Land Office had a batch of Type B official land exchange certificates available for public exchange, so he hurried to the Land Office, wanting to be the first to exchange some land in good locations.

On the public notice board, Luo Qihong saw the 30 square feet of land released this month, which were distributed in Tuen Mun, Yuen Long, Tai Po and Sai Kung districts, all of which were relatively poor locations.

After calming down, he continued his "turning waste into treasure" operation and suddenly noticed the land near Tiu Keng Leng in Tseung Kwan O. Although the new town plan has not been announced yet, it is close to the Kwun Tong District and is by the sea, which seems to be a good choice.

Therefore, Luo Qihong decided to exchange the land in Tiu Keng Leng, Tseung Kwan O. However, the land was connected and had an area of ​​about 4.8 square feet. Officials from the Land Department were reluctant to divide the land.

Luo Qihong had to talk his mouth off to convince the officials of the land office and finally acquired 2 square feet of land.

The procedures were completed very quickly, and the transfer was completed in just two hours. Luo Qihong also went to Tiu Keng Leng in person to confirm the land, which is only 2 kilometers away from the beach.

To his surprise, there was already a small construction site nearby, and the land in his hands should appreciate in value soon.

Buying a 24 square foot plot of land for 2 is really a bargain.

When Luo Qihong returned to the North Corner shop, he noticed an unusual light shining into the shop as soon as he entered the door. He turned around to look for the light source and was almost blinded.

It turned out that there was an Bagua mirror hanging on the door of the real estate agency across the street. As the sun began to set, the mirror reflected sunlight right into the door of the shop.

Hong Kong people are very particular about Feng Shui, so this is unlikely to be an unintentional mistake, as there have been many incidents caused by Feng Shui, including some that have resulted in injuries. Many Hong Kong people are very careful when using things like Bagua mirrors, for fear of accidentally getting into trouble.

"Aren't you going to go and have a chat with the other side? This is the plundering fortune bureau in the Feng Shui bureau!" Guan Jiahui said seriously, staring at Luo Qihong with her big eyes.

(End of this chapter)