Hong Kong 1980: The Savage Era

Chapter 247 [Distinguishing the Priorities]

It was already mid-to-late June when Luo Qihong returned to Hong Kong.

Although his people are in Tokyo, Japan, he has some understanding of the situation in Hong Kong. However, there is naturally some difference compared to when he was in Hong Kong.

Moreover, the situation in Hong Kong has also changed a lot, such as the internal situation of Hong Kong Land Development and China Shipping Company.

"Boss, the situation of Jianing Company is getting worse as you expected. HSBC's assistance in restructuring debts and assets has had a great positive impact on Jianing Company, but this is just robbing Peter to pay Paul. Moreover, the real estate market is so depressed that properties and land cannot be sold at a high price. Jianing Company is just struggling to maintain its operations," said Chen Zhilong.

"There are tabloid reports that Jianing's debt is close to 10 billion, and the so-called profit is nothing but a scam. HSBC has also begun to resolve the debt owed to them by Jianing by assisting in debt restructuring. There is some intention of striking first," Cheng Jianshen analyzed.

Luo Qihong remembered that the fuse that would lead to the bankruptcy of Jianing Company was imminent, and he had already obtained 21% of the shares of the most important Nikkatsu Film Company. He could take his time with the rest, just wait for the bankruptcy of Jianing Company, and then divide the shares.

"Well, you can put the matter of Jianing Company aside for now, and focus your main energy on China Real Estate, Hong Kong Holdings and Henderson Land Development." Luo Qihong said lightly.

It can be said that the bankruptcy of Jianing Company could not be saved. Even HSBC, known as the No. 22 financial group in Hong Kong, could not save it. HSBC's annual profit was only HK$2 billion. It would take at least two years' profit to barely reverse the decline of Jianing Company.

Luo Qihong had previously set his sights on the unfinished transaction between Jianing Company and Baishunning Group, namely, the control of the Kinmen Building and the United Soda Company. But now he calculated that his current funds were still insufficient, and the possibility of taking over the entire Kinmen Building was not high.

Good stuff, everyone wants it.

The three giants were slightly startled, and couldn't help but wonder in their hearts, what's wrong with the boss? Is he really willing to let go of such a fat piece of meat as Jianing Company?
In fact, Luo Qihong was also reluctant, but there is gain only when there is sacrifice. Those who want everything get nothing.

"The scope of the internal strife within the Jardine Matheson Company is expanding. Many directors and shareholders have already sided with Simon Keswick of the Keswick family. The alliance resistance of Newbyken and Bowdoin seems to be failing." Chen Zhilong continued to report.

Luo Qihong pondered for a moment. The failure of New Bijian and his team was only expected. First they lost the left-wing Wharf Group, and now the Hong Kong Land Development was burdened with a heavy debt of HK$165 billion, which put the Hong Kong Land Development at risk of bankruptcy. Even if the founder was reborn as the banker, the company would be shaky, not to mention that New Bijian was just a manager.

Simon Keswick was a capable man. Although the Jardine Land Group had huge flaws, it was still saved by him. Of course, losses could not be avoided.

"Has the Chinese capital taken any action against the Hong Kong Land Development? Do you know what they think?" Luo Qihong asked somewhat puzzled.

'.' The three giants looked at each other in bewilderment. It would not be difficult to find out what actions they had taken, but the term 'Chinese capital' had a very broad scope. As for their opinions, that was confidential and they would only tell their confidants. How could they easily find out?

Luo Qihong realized these questions and smiled instantly, "I didn't explain it clearly. If you want to know more about people, you can ask Li Jiacheng."

Among those bigwigs, Cheng Yutong does not like hostile takeovers and will definitely not be the first to take action. He will only cooperate with Chinese tycoons; Li Zhaoji probably does not have such a big appetite and does not like to take risks with such a large amount of funds; Guo Desheng specializes in real estate and is somewhat focused, and will not launch an attack on the Hong Kong Land Company without authorization; only Li Jiacheng is an ambitious person.

Chen Zhilong clarified Luo Qihong's question, sorted out his thoughts, and replied, "Li Jiacheng has been relatively low-key recently and is concentrating on developing his Hutchison Whampoa company. Cheung Kong Holdings has also carried out a series of debt adjustments and seems to have made major moves, but we are unable to find out the specific plan for the time being."

I'm afraid they have already set their sights on the Hong Kong Electric Company.

Luo Qihong thought to himself that he didn't believe at all what Li Jiacheng in his previous life said in front of the camera, "Ma Shimin persuaded him to acquire the Hong Kong Electric Company." He must have been eyeing the Hong Kong Electric Company for a long time, which is why the negotiation was completed in just over ten hours.

The Hong Kong Swire Properties also made a profit of HK$1 million from the Hong Kong Electric Company. If Li Jiacheng had not planned it for a long time, how could he have acquired it at such a high price? Did his money just come from the wind?
"Director Chen, please pay more attention to the Hong Kong Electric Company during this period." Luo Qihong gave the order.

Chen Zhilong was a little stunned. After thinking for a while, he asked, "Boss, are you worried that Li Jiacheng will take action against the Hong Kong Electric Company? The Hong Kong Land Company may not let go of such a high-quality property, right?"

Luo Qihong smiled and said, "Director Chen, you don't understand. With Li Jiacheng's business at this level, in order to avoid collapse, he must find a more risk-resistant industry. There are only a few companies in Hong Kong that meet the requirements. I'm afraid that it's not just Li Jiacheng who is thinking about this, but others are probably thinking about it too."

Chen Zhilong was just a senior employee and sometimes didn't understand what his bosses were thinking, but he quite agreed with Luo Qihong's reminder. After all, he had seen the ups and downs of many companies.

"Boss, are you planning to participate in their acquisition?" Cheng Jianshen asked.

If the boss takes over the Hong Kong Electric Light Company again, many positions will become available. If you can become the boss of the Hong Kong Electric Light Company, it will be an important turning point in your life and your social status will rise by several levels.

"Don't get me wrong! Under normal circumstances, it is difficult for us to take over the Hong Kong Electric Company, let alone an acquisition case with the involvement of a tycoon. Therefore, our goal is to make a profit, and we need at least 3 million Hong Kong dollars in profit." Luo Qihong said solemnly.

Three people, including Kang Wenyi, were eager to try, as this was a great opportunity.

So the three of them persuaded Luo Qihong to stand up, hoping that Luo Qihong could mobilize funds to participate in this large-scale acquisition. Even if he failed, it would be good for his reputation.

After all, it is not shameful to be defeated by a well-established tycoon like Li Jiacheng.

Luo Qihong still smiled bitterly and shook his head, "This is not my style. We need to be more prudent now to maintain the steady momentum of our expansion, rather than taking risks blindly."

"Those tycoons have strong financial resources and are determined to acquire the electric light company. It is difficult for us to compete with them. Moreover, such a high bid will only make things cheaper for the Landmark Company. We might as well take the opportunity to acquire some other high-quality things."

"Then when do we start?" Seeing that he could not change his boss's decision, Chen Zhilong turned his attention back to the power struggle.

"The battle for power in the Jardine Matheson Group has not yet come to an end, and our funds have other uses. Let's just keep an eye on it for now. Maybe it will be ready by the end of the year." Luo Qihong didn't know when the specific opportunity would come, but now was not the right time.

Since the Hong Kong Land Development has no intention of selling its 34.9% stake in the Electric Light Company, Li Jiacheng and Li Zhaoji will not rashly approach the Hong Kong Land Development.

This is a deep-level game. Whoever reveals the flaw first will suffer greater losses and lose more money.

Waiting is the most tormenting thing.

"Jia Nian Real Estate Company completed its final bankruptcy liquidation last month. The creditor banks have joined together to hold a bankruptcy auction. Boss, do you want to attend?" Chen Zhilong asked.

Hearing this, Luo Qihong became interested and asked with a smile, "I remember that we found a creditor bank to buy a batch of high-quality properties. Do you want other good things at the auction?"

“There are also some, like commercial buildings in Kowloon city and shopping malls and shops in Causeway Bay, but there won’t be too many colleagues participating,” said Chen Zhilong.

"There are quite a few real estate companies that have gone bankrupt recently. Didn't the banks cash out all those assets?" Luo Qihong asked casually. Jia Nian Real Estate's loans were spread across all the big and small banks in Hong Kong, and its asset value was not low. After other peers went bankrupt and liquidated, it was not easy to hold another auction.

“There are some, and the assets of Jia Nian Real Estate Company account for a relatively large proportion.”

"Who among you is interested in going with me?" Luo Qihong glanced at the three of them and said with a smile, "Your personal assets are not bad either. You can go to the auction to pick up some bargains."

The current market price has not yet bottomed out, but the items at the auction are almost at the bottom, so you can buy some good stuff.

Cheng Jianshen suddenly realized that the boss was seeking personal benefits for them, and asked, "Boss, do you think now is a good time to buy at the bottom?"

Luo Qihong shook his head. "It's not a good time to buy at the bottom yet, but it's rare for a company like Jia Nian Real Estate to go bankrupt. Some things can only be bought now, and the items at the auction won't be much lower than the bottom price."

Cheng Jianshen knew that Luo Qihong would not cheat them. After all, this would not benefit anyone and would only do harm.

"Then I'm interested in going over and taking a look, maybe I can find some good stuff." Cheng Jianshen said.

Upon seeing this, Kang Wenyi and Chen Zhilong also expressed their desire to go and have a look, hoping to possibly acquire some properties.

In fact, both real estate and stocks are the best investments.

Deep Water Bay Villa

The villa covers an area of ​​2 square feet and is equipped with a beach of more than 7 square feet. Its market value is more than 1 million yuan. If it was at its peak in 5, its market value would be no less than 82 million yuan.

With the villa, Lin Ya's idea of ​​not hiring a servant was no longer feasible. She really couldn't take care of it alone, so Luo Qihong took the opportunity to hire a housekeeper, three servants, and a chef.

This made Lin Ya criticize Luo Qihong, saying that he was too extravagant. The monthly salary of these five employees was close to 5 yuan, plus the maintenance and expenses of the villa, he needed to pay 3 yuan in cash every month.

Today, Shengyun Printing Company's monthly profit is only 50 to 60 yuan, which makes Lin Ya and Luo Zegui very distressed, but for the sake of face, they grit their teeth and accept it.

"Living in a villa is good, but it costs too much." Lin Ya sat on the rattan chair in the garden and sighed slightly.

Luo Qihong joked, "Brother's wedding will cost a lot of money, so why not just not have it and save some money?!"

Lin Ya's face changed slightly, and she gently scolded Luo Qihong, "How can this be the same? The wedding is a one-time thing, and the villa is a long-term thing. It must cost more than the wedding."

"I think you should not hold the wedding then, to save some money."

Lin Ya predicted that Luo Qihong's future wedding would cost at least 2 million, more than twice as much as Luo Qixing's.

"Haha!" Luo Qihong certainly didn't want to hold a wedding, but this was obviously not feasible.

Because he didn't hold a wedding, the Hong Kong newspapers would poke him in the back and call him stingy.

"Ashan is here!" Lin Ya smiled brightly again.

After Chen Yusan sat down, Luo Qihong greeted her, "Sister-in-law!"

"Ah Hong, is Japan fun?" Chen Yusan asked casually.

Luo Qihong smiled and said, "Japan's hot springs are nice, but I don't have much time to go to other places. You and your brother can consider Japan for your honeymoon."

Chen Yusan smiled and said, "Ah Xing and I have agreed to go to Europe for some fun. Japan will have to wait until the next trip."

Luo Qihong smiled and didn't respond.

"I heard that you have done a lot of projects in Japan. I wonder how they are going?" Chen Yusan asked.

"It's just so-so. The goal has been achieved." Luo Qihong said in a light tone.

Chen Yusan's face showed a conflicted look, but she finally said, "Japan's electronics industry is better than Hong Kong's. Jingmou Electronics Company wants to develop further, and perhaps it can borrow some Japanese technology. So my grandfather and his friends asked me to come and ask you, Ah Hong, if you have any connections in the electronics industry in Japan?"

Luo Qihong shook his head and said, "I just bought a film company in Japan and invested in stocks. I don't pay much attention to the electronics industry and can't help Jingmou Electronics Company."

Although Luo Qihong is a shareholder of Jingmou Electronics Company, the management rights are not in his hands, so he does not have to help.

"Yeah!" Chen Yusan nodded.

"It's different and you don't need to make concessions to cooperate. I suggest that Jingmou Electronics Company go to Japan to investigate the market. They can consider using the power of Dean Investment Company to acquire an electronics company. The current circuit board printing business seems to be very good." Luo Qihong pointed out a clear way out for the sake of his eldest brother.

Chen Yusan worked at Jingmou Electronic Manufacturing Company for some time and had some understanding of the circuit board printing business. This small industry has great prospects. After all, many electronic products require circuit boards.

Moreover, Hong Kong's electronic product assembly industry is huge. If the raw materials for circuit boards can be purchased from Jingmou Electronics Company, a lot of time can be saved and a small amount of cost can be saved (Hong Kong's tax rate is very low), which will definitely be a good business.

In fact, the Chen family had noticed this business a long time ago, but they lacked the channels and financial resources before, so now it is like bringing up old things again.

"Okay, then I'll go back and tell grandpa and see what they think." Chen Yusan said. She has already quit Jingmou Electronics and is helping out at Shengyun Printing Company.

(End of this chapter)