Hong Kong 1980: The Savage Era

Chapter 340 341 [The Role of the Landlord Association]

Hexiang Trading Company Meeting Room

Hop Cheung Trading won the bid for Swire Trading and successfully merged with Swire Trading, becoming one of the top five trading companies in Hong Kong.

The business of Taikoo Trading Company is largely the same as that of Hop Cheung Trading. Its purchasing products include ready-made clothes, toys, furniture, gifts, cooking utensils and tableware, among which ready-made clothes account for 65% of the purchasing business turnover.

It has a company called Kimberly Enterprise, which was founded in 79 by Swire Group director and Hong Kong Chief Councillor of the Executive and Legislative Councils, Teresa Tang.

This is a garment company that mainly engages in the involvement, production and procurement of high-end garments, women's sportswear, the latest fashions and household items. Its business scope covers famous brands from the UK, the US and Japan, of which British brands account for 70%, the US market accounts for 27%, and the rest are Japan and other markets.

"We have begun to take over Swire Trading Company, but there are some problems with its subsidiary Jinbali Enterprise. You may need to take action in person, as Deng Lianru's identity is not ordinary." Qian Yu said.

Luo Qihong nodded and said, "Well, I came here in person for this matter, so I should go and say hello."

There is no way. Deng Lianru’s identity is very special and she needs to be given enough face.

"The business of Swire Trading Company overlaps with ours. Should we merge them?" Zhang Zuoyao asked tentatively.

Swire Trading's business in the US market accounts for 80%. Once merged, it will greatly enhance Hexiang Trading's influence in the US market and will also strengthen Zhang Zuoyao's voice within Hexiang Trading.

Luo Qihong glanced at Zhang Zuyao. The merger must be done. Dispersion would waste the company's human resources and increase expenditure costs.

"Sure. After we digest Taikoo Trading Company, all the offices will be merged and managed by the person in charge of the region. However, as the company grows bigger and bigger, the amount of business increases dramatically. I plan to open a secretariat to assist me, Vice President Li, and Vice President Qian in handling the company's affairs."

"So will we report our work to the secretariat in the future?" Zhang Zuyao asked with a gloomy expression.

"In theory, the two vice presidents are still in charge of the secretariat. You can contact them directly." Luo Qihong thought for a moment and said in a gentle tone, "If there are any major issues, you can report them to me."

Such an operation undoubtedly weakened the status and power of regional heads such as Zhang Zuoyao in the company, but its power in the region was strengthened.

Luo Qihong then added, "The Secretariat will set up agencies in various important regions to oversee trade operations and personnel changes in various regions, and will not be responsible for the heads of various regions."

"Swire Trading Company already has a set of supervision mechanisms, so we might as well use it directly," Qian Yu suggested.

This is to strengthen the power of their two vice presidents. They certainly do not want any unexpected situations to occur and want to get the power as soon as possible.

"Okay, you discuss it with Vice President Li." Luo Qihong said.

"According to the accounts of Swire Trading Company in the first three quarters of this year, the turnover this year is expected to reach HK$3 billion, with a net profit margin of 30%, or 2.1 million yuan," said Qian Yu.

Luo Qihong frowned and asked, "Why is it so low?"

"There are many reasons, mainly due to poor management and business being squeezed by peers." Qian Yu handed over a report, "If we take over, I can guarantee that next year's turnover will reach 40 billion Hong Kong dollars, and the net profit rate will reach 3%, which means next year's profit will be 1 million yuan."

"It's still not high enough. It has to reach at least 1 million. Adding the original profit of Hexiang Trading, the net profit must exceed 5 million yuan." Luo Qihong directly added.

"Yes, we will definitely do it." Qian Yu promised.

Now is the critical time to fight for power. Rejecting the boss means rejecting your own future.

"We have absorbed so many companies. Our scale is not much smaller than those of Innovent Biologics and Hengchangxing Enterprise. We need to keep up with the turnover and strive to exceed 1 billion yuan as soon as possible, with a profit margin of more than 3 million yuan," said Luo Qihong.

the next morning.

Luo Qihong met with Councillor Deng Lianru at the Mandarin Oriental Hotel. The two reached an agreement and decided to do things according to the previous rules.

Jinbali Enterprise Company is still headed by Deng Lianru, and there is no need to report non-major matters to Hexiang Trading Company. Moreover, Deng Lianru is directly in contact with Luo Qihong, and is not responsible to the two vice presidents or the secretariat.

In fact, there is some overlap in the business between Kimberly Enterprises and Lane Crawford, which will affect each other's turnover, but it is not serious.

Then Luo Qihong came to another private room. Actually, Luo Qihong didn't really want to come here, but it was one floor away and he thought it might be of some use.

"Mr. Luo!" Zhong Wei, chairman of the board of directors of Weimon Investment Company, who had been waiting for a long time, stood up respectfully and greeted him.

"Yeah!" Luo Qihong nodded slightly and chose a seat to sit down.

"Mr. Zhong, what do you want to talk to me about today? Just tell me, I don't have much time."

Zhong Wei flattered, "I heard that Luo Sheng wants to privatize Legu Real Estate Company. I wonder if Weimeng Investment can help?"

Luo Qihong's face froze. With the help of the landlord, the share price of Legu Real Estate Company would naturally be more favorable, making the debt of Huaguang Real Estate Company reach an ideal state.

If Huaguang Real Estate Company's debt is too serious, Zhaoan Real Estate Company may not be able to fully acquire Huaguang Real Estate because the cost will be too high.

According to the budget of Zhaoan Real Estate Company, the debt ratio of Huaguang Real Estate Company should rise to 6% at best. Unfortunately, the current debt ratio of Huaguang Real Estate is already very close to the ideal state.

Although Huaguang Real Estate Company's debt ratio will decrease as the local market improves and rises, it will be difficult to reduce it to the target value.

If Luo Qihong insists on achieving the target value, he will inevitably gain a bad reputation and have disputes with small shareholders. Now that the landlord is willing to help, he doesn't have to get involved himself.

"Name your price." Luo Qihong was too lazy to talk nonsense with Zhong Wei.

Zhong Wei smiled and said, "Mr. Luo doesn't quite understand the working style of Waymon Investment Company. We will earn the fees directly from driving up the stock price in the stock market, without the need for customers to pay any fees."

"What do you want to do?" Luo Qihong asked puzzledly.

"We will release the news that Huaguang Real Estate Company is privatizing Legu Real Estate Company to push up the stock price, and then sell a large amount of goods to drive down the stock price. Luo Sheng can take the opportunity to buy goods at a low price and can get any stock price he wants." Zhong Wei boasted.

"It's easy to say. If I didn't run a securities company, I would have been fooled by you." Luo Qihong held the wine glass and sneered, "Bring me the plan!"

"Okay, Luo Sheng!" Zhong Wei knew that the matter had been settled and quickly took out the documents.

Luo Qihong glanced through it and said with a smile, "You Landlord Association really plays the game of truth and falsehood thoroughly. Okay, I approve of the plan, let's do it according to this."

"Thank you, Mr. Luo! If you are satisfied with this cooperation, I hope you can give us more opportunities." Zhong Wei said humbly.

"No problem!" Luo Qihong waved his hand.

Luo Qihong doesn't care how much money the landlord will make, nor will he take the opportunity to collect commissions, because the bulk of the profits still go to Legu Real Estate Company.

Dehe Real Estate Company
According to the current market conditions, the asset value of Dehe Real Estate Company is about 30 billion yuan. It owns Dehe Plaza (Admiralty Land), New Sun Plaza at 28 Canton Road, Tsim Sha Tsui, 50% interest in China Hong Kong City, 3 commercial buildings in Yau Tsim Mong District, several villas in the Mid-Levels and some scattered properties.

Although the 50% interest in China Hong Kong City has not been fully acquired, Dehe Real Estate Company has already paid 2 million yuan in cash. The remaining construction costs need to be paid slowly, part of which will be in the form of loans.

"There is still a larger piece of land next to Dehe Plaza. We have not received any news yet from the Hong Kong government that it is going to be sold, but I think it should not be too far away," said Su Qishan.

"What's the area of ​​the remaining piece of land?" Luo Qihong asked.

"It's about 15.7 square feet, and the price is uncertain." Su Qishan said after a moment of hesitation.

Luo Qihong had already calculated a price in his mind, "We must get this piece of land, otherwise we will lose a lot."

"It will definitely double, maybe even exceed 20 billion." Su Qishan responded cautiously.

"20 billion is 20 billion. I will set aside funds. Don't worry." Luo Qihong waved his hand. "How much debt does the company have?"

Su Qishan said, "4 million yuan, the monthly interest is 5 million yuan, our rent is just enough to pay, the company still has sufficient funds in the account, but it is all construction costs for a few pieces of land."

(End of this chapter)