Hong Kong 1980: The Savage Era

Chapter 44 [Multiple Businesses]

"Mr. Luo, what is the cooperation plan?" Yang Mingkun asked seriously.

Luo Qihong thought for a moment, organized his words, and said, "I will be responsible for the business, and Mr. Yang will be responsible for the engineering. Then let's distribute the shares according to the investment. I want 60%. We will discuss the company's affairs. Does Mr. Yang have any opinions?"

Yang Mingkun thought about it carefully and felt that the plan was acceptable, but he wanted to clarify some things. "Mr. Luo, I speak very frankly. Please forgive me if I have offended you. Mr. Luo, can you guarantee the company's project volume? I hope there will be work every day."

"Mr. Yang, I can't guarantee that there will be work every day, but I can promise you that there will be work for at least three weeks a month, and I will cooperate with listed companies in the future, so the workload should be guaranteed." What Luo Qihong said was true, but the second half of the sentence was still an idea, it's just that the chance of success is higher.

Yang Mingkun knew that Luo Qihong was unlikely to deceive him. He recalled that Luo Qihong had always had projects for him every month. Now that he wanted to cooperate with him to start a company, it was obvious that he had a large number of projects and did not want the benefits to go to others.

"Okay, but I have a condition, and I hope Luo Sheng can agree to it." Yang Mingkun said seriously.

"Mr. Yang, please speak!" Luo Qihong did not agree immediately without taking on too much responsibility, although he guessed a little about Yang Mingkun's thoughts.

Yang Mingkun glanced at Tan Hongmei and said, "I hope that I will have the final say on engineering and technical matters. When there is a disagreement with you, Luo Sheng, my opinion will prevail."

Luo Qihong nodded happily. "Of course. I don't understand construction projects and I won't interfere without permission."

"Why don't you, Luo Sheng, directly invest in my Fengtu Construction Company. The company will now belong to me alone, so I won't have to run around to so many government departments." Yang Mingkun suggested.

"OK! Mr. Yang, please give us a price." Luo Qihong said. He believed that Yang Mingkun would not be stupid enough to ask for a random price.

Yang Mingkun shook his head and said, "I don't know how much it is either. Why don't I check it out and then call you, Luo Sheng, to discuss it."

"Okay, then let's go to Changle Street in the downtown area of ​​Kowloon to look at the shops first. If the price is determined, we will go to the law firm to sign the contract." Luo Qihong said.

Yang Mingkun asked in confusion, "Why didn't Luo Sheng wait until he acquired a stake in Fengtu Construction Company before talking about this? After acquiring a stake, the company can do these projects at a lower price."

Luo Qihong smiled and said, "Let's start work earlier. I need to recover the cost as soon as possible."

So, the two of them took a car to the urban area of ​​Kowloon. Yang Mingkun confirmed that the price was only 3 yuan, but Luo Qihong wanted Yang Mingkun to complete the partition project before the 12th.

Yang Mingkun knew that Luo Qihong was anxious, so he said that he would call the workers to start work that day and try to finish it before the first day of the Lunar New Year (February 2).

After finishing the negotiations with Yang Mingkun, Luo Qihong went to Yiren Real Estate Company again and looked for Lin Luoqi to cooperate in the next plan.

After listening to Luo Qihong's explanation of everything, Lin Luoqi always felt that Luo Qihong had other cooperation projects that he had not mentioned.

"You can't make much money from this kind of business, right?" Lin Luoqi looked down on the profits it brought.

Luo Qihong smiled and said, "A shop can make about 1% net profit, but our construction period is very short, so we can 'partition' multiple shops. If we can complete 10 shops in a month, we can make 2 million in profit."

"Two million!" Lin Luoqi took a breath. You know, the monthly rent of Yiren Real Estate Company is just over one million. Two months' company rent is really tempting.

Of course, Lin Luoqi also wanted to take over the business for himself, but he knew that Luo Qihong was cautious, so it might not be that simple.

"This kind of business won't always make a profit of 2 million, right?" Lin Luoqi asked.

Luo Qihong replied, "It won't be there forever. It will be there in the first two or three months, but it's hard to say what will happen in the future. So we are making quick money this time."

Even quick money is attractive.

"Okay, then what role do you want Yiren Real Estate Company to play?" Lin Luoqi asked.

"My purpose is very simple. I will pay 4% of the cost and only take 1 million in profit every month. The rest will belong to Yiren Real Estate. Or you can cooperate with us privately, but the project must be left to me." Luo Qihong said seriously.

"No problem!" Lin Luoqi had no objection to the profit distribution. Instead, he pondered over what Luo Qihong had said about "private cooperation", which seemed feasible.

Even if there is only profit for two months, that is more than 2 million in income, and it will be a long-term profit in the future.

"I will cooperate with you privately. There is no need to borrow the name of Yiren Real Estate Company." Lin Luoqi still decided to take over this business and profits. After all, Yiren Real Estate Company is a business of the Lin family, not completely owned by him, Lin Luoqi. Luo Qihong smiled and nodded. Lin Luoqi finally understood, "Then let's run the two stores together and see if they can be seamlessly connected? It will be harder in the first two months and make more money."

Lin Luoqi smiled and said, "That's natural! Make more money."

"I have another business deal, but it needs Yiren Real Estate Company to do it." Luo Qihong smiled mysteriously.

"What business?" Lin Luoqi immediately became interested.

"It's a pre-sale property owned by a big company." Luo Qihong said.

Lin Luoqi glanced at Luo Qihong and said, "There are many companies doing the pre-sale housing business. We don't have much resources to get involved."

Pre-sale properties are usually unfinished properties that are contracted by small real estate companies from large companies' projects. The price will be 95% lower than the market price. The small company will earn 5% of the profit and will work with decoration companies to earn more money from the decoration fees.

During the peak period of the real estate market, this kind of business is almost a sure win, but there are some large real estate projects in slightly remote areas that are not popular with many real estate developers.

Luo Qihong could see that Lin Luoqi had investigated such a project before and was clearly aware of the tricks involved. "If we can get the resources for this project, we will do it. If we don't have the resources, we will speculate on other properties. Luoqi, you know that I can sell any lousy property."

Luo Qihong and Lin Luoqi speculated on properties because they had their eyes on Yiren Real Estate Company and Lin Luoqi's network of relationships in Hong Kong. Once an industrial chain could be formed, they would make a lot of money.

"We can talk about this project. How do you want to cooperate?" Lin Luoqi said to Luo Qihong.

"We take 5% of the profit, you and I each get half, 25%, the remaining 5% will be given to Yiren Real Estate Company, but Yiren Real Estate Company has to pay most of the cost funds." Luo Qihong said with a smile.

"Do you also want this distribution plan for the future houses?" Lin Luoqi said with shining eyes.

Luo Qihong nodded. Without the transfer of benefits, who would want to play with you? With benefits tied to it, there is no need to worry that Lin Luoqi will not agree.

Lin Luoqi thought for a moment and said, "I agree to both projects, but the partner cannot be Hehong Real Estate Company or you personally. You should register a new company, which is safer."

"This is easy! You and I will each hold 50% of the shares in the new company, and I will be in charge of the specific operations." Luo Qihong said very tactfully.

"Haha!! Then we'll have a pleasant cooperation!" Lin Luoqi picked up the coffee cup and clinked it with Luo Qihong's cup.

The reason why Luo Qihong is so crazy is that he urgently needs funds to acquire listed companies and restructure assets, debts, etc. He believes that he will be able to enter the fast lane of development soon.

The two also discussed issues such as the specific funding for the three projects. Things were not as simple as they said and required some time to implement. Moreover, both of them were short of personal funds and needed time to raise them. In particular, Luo Qihong needed to sell the tenement building in Yuen Long as soon as possible to recover more than 200 million yuan in funds.

In fact, Luo Qihong has already regretted purchasing the tenement building in Yuen Long. He did not expect that it would be kept in his hands for so long. Now there is no favorable news from Yuen Long.

There were only three days left until the Spring Festival (they still had to go to work on New Year's Eve), and it was basically impossible to complete these procedures, so the two agreed to sign the contracts after the New Year.

Luo Qihong was very busy in the next three days. He wanted to sell the tenement building in Yuen Long and was trying hard to find a buyer. Unfortunately, not many people were interested in it, or the bids were a bit low, and he might even lose some taxes.

Tuesday, March 2

Zhang Taotao finally sold all the shares of Yiren Real Estate Company and successfully bought a lot of shares of China Bus Company.

"Mr. Luo, you hold 112.7 million shares of Yiren Real Estate Company. The average purchase price is 0.8 yuan, and the average selling price is 2 yuan. After deducting various fees and taxes, the funds recovered are 220.892 million yuan, and the rate of return is 150%." Zhang Taotao reported, "Among them, 113.16 million yuan has been used to buy 6.9 shares of China Bus Company at an average price of 16.4 yuan, and the remaining funds are 107.732 million yuan."

As a result, Luo Qihong already holds 30 shares of China Motor Bus Company, accounting for 1% of the total share capital, which is still far from the ideal %.

Luo Qihong thought about it and made up his mind, "Mr. Zhang, stop buying shares of China Bus Company and transfer the funds to my personal account."

"Yes! I'll do it later." Zhang Taotao responded, "The current share price of Hang Lung is 11.2 yuan, an increase of about 8%."

(End of this chapter)