Hong Kong 1980: The Savage Era

Chapter 336 337 [Not yet the time]

Late September

Paramount Newspaper Company carried out its first share offering, raising 3 million yuan, and Fujia Newspaper Company was to contribute 2 million yuan.

The purpose of this fundraising is to acquire the "Overseas Chinese Daily" owned by the Cen Weixiu family, increase the asset value and foundation of Paramount Newspapers, and enhance its competitiveness in the industry.

The daily sales volume of "Overseas Chinese Daily" is only more than 3 copies, making it one of the most popular daily newspapers in Hong Kong. Although it cannot compare with "Tiantian Daily", which is ranked in the top four in sales volume, the advertising fees it receives every year are still astonishing, reaching more than 1 million.

In fact, the Overseas Chinese Daily has begun to decline, with its circulation dropping from 7 at its peak to 3 today, a drop of more than half.

This is because the Overseas Chinese Daily lacks innovation. The content has remained the same for ten years without much change.

The head of the Cen Weixiu family, Cen Caisheng, is old, now 64 years old, and lacks energy. His four children are not interested in the newspaper industry, so they have fallen into this situation.

Cheng King-hon is different from the Cham Wei-hsiu family. He is still young and determined to become a newspaper tycoon in Hong Kong. He will definitely make changes to the Overseas Chinese Daily in order to restore it to its peak state.

"Hello, Mr. Luo! I am Zheng Jinghan!" Zheng Jinghan shook hands with Luo Qihong. He finally met this legendary leader of the younger generation.

"Hello, Mr. Zheng!" Luo Qihong chose a seat and sat down, laughing, "Mr. Zheng is really amazing. He started a new business and listed it in just one and a half years."

Cheng King-han said modestly, "How can you compare to Luo Sheng! Luo Sheng, you have been in the real estate market since 80. Now, in just five years, you have become a well-known tycoon in Hong Kong, and you are no less than the tycoons of the older generation."

"Mr. Zheng, you're too kind! It's just luck." Luo Qihong didn't want to dwell on such a superficial topic, so he changed the subject and said, "After Paramount Newspapers acquired the Overseas Chinese Daily, they completed the reform and are about to challenge the position of the Tiantian Daily."

Zheng Jinghan's face changed slightly, and he said, "The sales of Tiantian Daily are over 3, while the sales of Huaqiao Daily are only . I don't know when it will threaten Tiantian Daily."

"Paramount will not focus all its energy on the daily newspaper. I plan to start other types of magazines to increase the scale of the company."

Luo Qihong nodded. "Well, the market for daily newspapers is already saturated and more competitive than other tracks. I personally think that the market for gossip magazines is huge. It seems saturated now, but in fact, it lacks truly authoritative magazines."

Zheng Jinghan said, "Luo Sheng wants Paramount to publish a gossip magazine?"

"Haha!! This is Zheng Sheng's will. I am just giving a suggestion to prevent the two newspapers from becoming real rivals. I also hope that Zheng Sheng can help me defeat Yulang International."

"That may be difficult. Wong Yuk-long has already monopolized the comics market in Hong Kong. Paramount's main business is magazines and daily newspapers, and it doesn't have much to do with Yuk-long International." Cheng King-han said somewhat against his will.

Luo Qihong smiled and said, "In the comics market, no one can rival Wong Yuk-lang, but he is no longer satisfied with the comics market. Zheng Sheng only needs to suppress Wong Yuk-lang in his exclusive field, and leave the rest to time and me."

"Okay! So if we succeed, how does Luo Sheng plan to deal with Yulang International Company?" Zheng Jinghan asked.

"If Paramount Newspaper Company has enough strength, it can completely swallow up Yulang International." Luo Qihong pursed his lips and smiled slightly. Yulang International is not small in scale, but it is not in Luo Qihong's eyes. First, the soul of Yulang International is Huang Yulang. Even if it is taken over, it will take a lot of energy to maintain the original status quo. Second, he has better goals.

"Thank you, Mr. Luo!" Zheng Jinghan didn't expect Luo Qihong to be so generous, but after thinking about it, he felt that this would be very beneficial to Luo Qihong. After all, Luo Qihong was a shareholder of Paramount Newspapers.

Due to Liu Luanxiong's sniping, Guo Zhiquan's family suffered heavy losses, and the situation of struggling to maintain Wing On Bank became urgent. There was little point in continuing to hold on.

In early October, the funds raised by Wing On Bank from its rights issue were again lost, so the Hong Kong government invited Hang Seng Bank to inject capital and take over Wing On Bank.

After Hang Seng Bank moved in, it checked the accounts and found that 95% of the loans it had issued were bad debts, including 5 million yuan lent out with a mortgage of 7 million yuan by the bank's vice chairman, Guo Zhikuang. However, Guo Zhikuang had died and the loans could not be recovered at all.

Then, under the auspices of Hang Seng Bank, Wing On Bank launched a "capital restructuring plan".

First, the original par value of Yongan Bank's common stock of 1 yuan was written off by 90%, that is, reduced to a par value of 10 yuan. The reduced share capital was added to the accumulated profits and share premium accounts in the past to offset the huge accumulated losses.

Then, the original shareholders were allowed to increase their capital. Every shareholder holding 20 shares could subscribe for 10 shares at the par value after write-down of share capital, that is, at a price of $154 per share, thereby injecting $1 million into the bank.

In the end, Hang Seng Bank acquired 50.28% of the shares of Wing On Bank, becoming the largest shareholder, while Wing On Group's shareholding was reduced to 45%, becoming the second largest shareholder.

Such a serious management mistake could not be fully borne by the deceased Guo Zhikuan. Therefore, after a fierce struggle within the Guo family, Guo Zhiquan was forced to resign as chairman of the board of directors of Wing On Group and let his cousin Guo Zhiliang take over.

"Even the head of the Guo family, Guo Zhiquan, has been defeated. The internal fighting within the Guo family is very intense." Bai Jinyan had a smile on his face.

Luo Qihong smiled and said, "Guo Zhiquan was able to secure his position as the head of the family by selling out a lot of interests. Now that the interests are gone, of course he has to step down. However, he still controls the Yongan Group, but he is not in the front."

"Do you want to do it again?" Bai Jinyan said with shining eyes.

Luo Qihong understood Bai Jinyan's meaning and said, "Last time I had a legitimate reason, but now I have no excuse. It's not worth it to force it."

"Yeah, that's right!" Bai Jinyan was somewhat unwilling. Yong'an Group was a well-known large company, and it would be a great thing for De'an Securities Investment Company to be able to acquire it.

"Even if we have to do it, we have to let Liu Luanxiong do it. We absolutely cannot stand in front of the stage. But Liu Luanxiong is in a quagmire now and does not have the ability to do it for the time being." Luo Qihong gave Bai Jinyan a glimmer of hope.

Bai Jinyan smiled and said, "Let's talk about it later."

Luo Qihong knew that Guo Zhiquan's family had a lot of problems. They had made a lot of profits from Yong'an Bank alone, which could not be repaid in a short period of time. Moreover, those members would not be willing to be lonely and would definitely do something naughty. That would be the best time to make a move.

At this time, Guo Zhiquan's family was also deeply mired in public opinion, otherwise Guo Zhiquan would not have resigned so easily. It can be said that Yong'an Bank has lost all its credibility, which is the most important thing.

(End of this chapter)