Hong Kong 1980: The Savage Era

Chapter 314 Chapter 315 [Smart people speak, stupid people take action]

Tuesday, March 3

Hong Kong and Macau International Co., Ltd. was formally established and a board meeting was held on the same day.

Luo Qihong didn't want to participate at first. He was currently working on the real estate of Jinzhongbing and raising funds for its development.

But this was the first board meeting of Hong Kong and Macau International, and he had to give face to everyone, so he had to put aside his work and attend.

Cao Guangbiao is naturally the chairman of the board of directors of Hong Kong and Macau International. He sits in the first seat and takes charge of the overall situation.

After a long speech, Cao Guangbiao finally got to the point.

"I suggest setting up Dragonair Limited with a registered capital of HK$1 million." Cao Guangbiao continued, "The mainland has been open for several years, and air traffic between Hong Kong and the mainland has become busy and crowded, especially the Hong Kong-BJ and Hong Kong-Shanghai routes. Many passengers cannot buy tickets and can only transfer to nearby cities. This is our opportunity."

Many directors agreed that the original purpose of establishing the airline was to seize the mainland aviation market and then expand into other regions.

Luo Qihong thought about it and decided to remind the ambitious Chairman Cao, "I have a question. Our actions will definitely be blocked by Cathay Pacific Airways. Should we discuss how to deal with the Swire Group?"

Cao Guangbiao took a deep look at Luo Qihong and asked, "Mr. Luo, if you have any insightful ideas, please speak up."

"I can't say I have a brilliant opinion, but I do have some superficial ones." Luo Qihong said modestly, "Due to the company's background, I think the Hong Kong government will intervene directly, and even block it from a legislative perspective. Should we take the initiative?"

This statement made most of the directors frown. The Hong Kong government has always claimed that it would not interfere in the market economy, so they really did not consider the issue of the Hong Kong government personally intervening. At most, they thought it would be a bit of an embarrassment.

"What Luo Sheng said makes sense. What is Luo Sheng's idea?" Cao Guangbiao suddenly took the youngest tycoon in the audience seriously.

"No matter what we do, we must have the official approval document from the Civil Aviation Department, so that we can be invincible." Luo Qihong smiled and said, "Now is the best time. While the Hong Kong government has not yet fully reacted, we must use means to get all the documents required by the Civil Aviation Department in the plan. Even if the Hong Kong government regrets it in the future, it will be very difficult. Only then will we have the capital for negotiation."

Why do we have the capital to negotiate?
Because changing one's mind every day is an important factor that damages the image of the Z government, by relying on this, they can get a lot of benefits from the Hong Kong government and avoid being in a passive position.

"Mr. Luo is right. I will hurry up and discuss this with the Civil Aviation Department," Cao Guangbiao nodded.

Luo Qihong smiled and said, "Chairman Cao, many of the directors here have good relations with the Hong Kong government. You can go to the Civil Aviation Department with them, and maybe it will have some effect."

He still couldn't help but remind them that these business predecessors were vigorous and resolute in their work, but most of them were very concerned about their reputation and believed that they were capable enough to handle organizations like the Civil Aviation Department, but they ignored the tactic of using the opponent's strength to their advantage.

All the tycoons present looked at Luo Qihong. This was to find work for them. They were just representing Hong Kong and Macao International and had never thought of helping with anything else.

It has to be said that Luo Qihong's move deepened the impression of the directors present on him. Although he was young, he was very far-sighted and ruthless in doing things, and he dragged everyone into a trap with just one sentence.

Li Jiacheng glanced at Luo Qihong, his expression even more serious than at the beginning. When it comes to his relationship with the Hong Kong government, apart from the ship chartering king and Cheng Yutong, he is the only one left.

After the meeting, Cao Guangbiao asked his son Cao Qiyong to invite Luo Qihong, Bao Chuanwang and Li Jiacheng to his office, saying that there was something important to discuss.

After some pleasantries, we got down to business.

"What Mr. Luo said just now is very valuable. The Civil Aviation Department of the Hong Kong government is indeed a key. I wonder if you three have time to go with me to the Civil Aviation Department to discuss the company's aviation affairs?" Cao Guangbiao kept smiling.

Luo Qihong smiled and said, "Chairman Cao, my relationship with the Hong Kong government is average, I'm afraid my visit will not have any effect."

This is a polite refusal!

These tasks are thankless and there is an old saying in Hong Kong: 'Smart people only talk but don't actually help'.

Cao Guangbiao said, "Mr. Luo has a strong grasp of the details and may be able to give us some good suggestions on the spot, saving us from making extra trips."

Cao Guangbiao did not give Luo Qihong a chance to refuse. He turned to Bao Chuanwang and Li Jiacheng and said, "Mr. Bao, Mr. Li, what do you think? Do you have the time?"

The charter boat king smiled and said, "I have the time, but I can't guarantee that the Civil Aviation Department will give me this favor."

Seeing that the charter king had agreed, Li Jiacheng was used to being a good guy, so he nodded and said, "Mr. Cao, just let me know when you decide the time. I'll make some time."

"Okay, then we four have a deal." Cao Guangbiao laughed, his eyes moving between the three people.

"."Luo Qihong was speechless. I haven't agreed yet. What do you mean the four of us have agreed on it?

When I returned to Zhaoan Real Estate Company, before I could even sit down, Cheng Jianshen and others walked in.

"boss!"

"Just tell me what's going on." Luo Qihong was not in a good mood. He only had 1.5% of Hong Kong and Macau International, but he had to do so many things. It was really not worth it. Now he was being drafted by Cao Guangbiao, which was really "shooting himself in the foot." "There are several small shareholders of Guangshengxing International who want to sell their shares. Should we take over?" Cheng Jianshen asked. Guangshengxing International is a good thing.

This is a company that deals in cosmetics, property rental, and land development. In the 60s and 70s, cosmetics were its main business, and now its main business is property rental and the development of its land.

It has a large amount of land and properties in Wan Chai, Causeway Bay, Kowloon City and North Point. It is a relatively outstanding real estate company, slightly inferior to Legu Properties.

"What's the price?" Luo Qihong put the documents away and asked in a deep voice.

"A 2% premium! There are many people ready to take over, so we may have to raise the premium to around 3% or 4%." Cheng Jianshen said.

"This company is not easy to acquire. Li Jiacheng is eyeing it covetously. He has such a good relationship with Feng Wanju of Guangsheng Bank. Why should we succeed?" Luo Qihong has already acquired so many high-quality real estate companies. He thinks there is no need to rush to the next step. Any big move will make him feel like Chen Songqing.

Cheng Jianshen also knew the difficulty. After thinking for a moment, he said, "We have to give it a try. What if we can get it? The properties held by this company are very good. The Citibank Centre in Causeway Bay is one of the best properties with a floor area of ​​55 square feet. There are 28 high-end residential buildings in South Bay, Repulse Bay, Stanley and other areas. There is also a large amount of cash in the bank earning interest, with an annual profit of more than 5 million yuan."

Luo Qihong was somewhat tempted, but he was still a little concerned about Li Jiacheng, this hungry wolf. He would not have any advantage in starting a business war with him. It would mean failure, and failure would result in losses. He suddenly found it difficult to make a decision.

In the end, Luo Qihong nodded and said, "The maximum premium is 3%. How much equity can I get?"

"9%!" Cheng Jianshen was afraid that his boss would think it was too little, so he explained, "The largest shareholder is the Feng Wanju family, which holds 24.85% of the shares. If we take over these shares, we can become the fourth largest shareholder of Guangsheng Bank."

"Then you guys go and talk." Luo Qihong waved his hand, showing little interest in this.

He remembered that Li Jiacheng had attempted to privatize Guangshengxing Company, but failed. If it had not been successful, he would have had to spend a lot of effort to transfer the properties of Guangshengxing Company and turn Guangshengxing Company into an empty shell.

But this operation is very harmful to human nature and is a form of legal theft.

If he does not transfer, he will have too many listed companies in his hands, and the businesses overlap greatly, which will waste a lot of manpower and resources, and there will be many hidden dangers.

"Don't think about acquisitions all the time. The subsidiaries of Zhaoan Real Estate are going to be integrated. I plan to privatize Legu Real Estate Company, and then privatize it at a very small cost after exhausting the strength of Huaguang Real Estate." Luo Qihong stated his plans for the next few years.

Cheng Jianshen and others had anticipated this situation. Zhaoan Real Estate has three listed companies, all of which are real estate companies. This is really a bit "excessive".

You have to know that those large comprehensive companies do not have so many listed companies of the same type. You can imagine the degree of burden.

"Yes! Let's prepare well." Cheng Jianshen and others nodded.

"Boss, this is the current market report on industrial properties." Chen Zhilong handed over a report. "Currently, only industrial properties in Yau Tong, Kowloon Bay and Tsuen Wan have seen an increase, but it is a small increase. It should usher in a larger increase in the second half of the year, between 20% and 30%."

"Three months have passed since mid-December last year until March now, and the industrial property market has increased by 12%, which is not bad." Luo Qihong glanced through the report and asked, "How is the company's debt now? How long can it last?"

"The debt is over 7%, but with a slight increase in property prices in Central, Wan Chai and other districts, the debt will soon fall back to around 65%. However, the interest we need to pay every month remains unchanged, and it should be able to support us until the end of the year, provided there are no accidents." Kang Wenyi reported.

Today, Zhaoan Real Estate Company still belongs to the category of medium-sized real estate companies and may also become part of the mid-year stock market crash.

The asset value will not fall sharply, but the market value is also very important and is also a criterion for measuring the development of a company.

"We have announced that the company will be raising funds and issuing shares at the end of April. Considering the company's current market value, we will issue one share for every three shares, raising 4 million yuan," said Luo Qihong.

Raising funds for share capital was within the plan, it was just brought forward a little.

"Will all the funds raised from the share offering be used to repay debts?" Cheng Jianshen asked.

"Yes, repay all the debts." Luo Qihong nodded slightly. "After the repayment, how much will the company's debt ratio drop to?"

"It dropped to around 37%, and the business situation became good," Cheng Jianshen replied.

"After the fundraising and share offering are completed, notify De'an Company and ask them to sell the shares held by the company." Luo Qihong almost forgot about the company's investment in the stock market.

Cheng Jianshen made a note in his notebook and asked, "Do we need to reduce our holdings of Huaguang Real Estate Company's shares?"

Cheng Jianshen realized something and thought that perhaps these companies were also on the list, but the boss had forgotten about it.

Luo Qihong was slightly stunned. How could he forget about Huaguang Real Estate?

"Reduce your holdings, reduce them to 36%, and complete it before mid-May." Luo Qihong still felt it was better to be cautious.

After a moment of silence, Chen Zhilong said, "At present, many overseas speculators have returned and are vigorously clearing out the better properties in various districts."

(End of this chapter)