Hong Kong 1980: The Savage Era

Chapter 469 471 [Anyway, I’m not afraid, I’ll drag you to death]

Since 82, the situation in Hong Kong has been up and down, and it is shrouded in mystery. Even most Chinese people are not optimistic about Hong Kong, let alone foreign companies.

Of course, Hong Kong's return on investment is still the highest in the world, so capital will not be completely withdrawn, but the amount of investment will be reduced.

Against this background, the Australian Prestige Group did not dare to ask for a high price and only paid a 1% premium, selling 5% of the shares of Prestige Parking Management Company for 5 million yuan, leaving 70% of the shares as an investment.

At the same time, Zhaoan Group handed over the management of all its commercial buildings and residential parking lots to Weixin Parking Management Company.

As a result, the number of parking lots managed by Weixin Parking exceeds 400, nearly twice as many as the second-ranked Sun Hung Kai Parking Management Company. However, it still has a long way to go before it can monopolize the parking lots in Hong Kong Island and Kowloon city.

This acquisition was quite low-key. Zhaoan Real Estate Company did not even issue an announcement, but just said hello to the directors. Therefore, it did not cause any sensation and there was no unexpected increase in the stock price.

In fact, the company's top management strongly suggested that Luo Qihong hype up the company's shares, as it was necessary to increase the company's share price and market value. After all, the market value of Zhao An Real Estate Company has not yet exceeded HK$200 billion.

According to the current economic situation, Luo Qihong estimates that in 95, Hong Kong's 36 blue-chip stocks will reach a market value of HK$200 billion.

It is only 91 years now, and there are still 3 or 4 years to reach HK$200 billion by relying on the market value to grow according to economic laws.

Luo Qihong didn't want to stand out too much. Now was the time to keep a low profile and let others stand out.

Compared with the success of other subsidiaries, Kowloon Airlines' situation is somewhat ugly. Last year, the company was still in a loss-making state, but the loss was reduced to 5 million Hong Kong dollars.

Compared with its rival Cathay Pacific Airways, Kowloon Airlines is simply weak. Cathay Pacific Airways has made a lot of money and has become the mainstay of the Swire Group.

However, Kowloon Airlines also put a lot of pressure on Cathay Pacific, especially on the round-trip routes between the mainland and Hong Kong. Cathay Pacific did not make any money on these mainland routes.

Luo Qihong can certainly afford the losses, but the Sino-Singapore Group has complaints about this. Although they do not need to bear the losses, not making money is a "loss".

Luo Qihong passed on the pressure of this dissatisfaction, but Sino-Singapore Group began to frequently contact Cathay Pacific, seemingly wanting to conduct some negotiations.

He immediately found Mr. Rong, and after two months of negotiations, he acquired the only remaining shares of Hong Kong Dragon Airlines from the Sino-Singapore Group at a high price. Luo Qihong held more than 2% of the shares of Kowloon Airlines, becoming the largest shareholder.

The senior management of Cathay Pacific Airways is well aware of Luo Qihong's strength and believes that if this continues, Cathay Pacific Airways' profits will decrease, which will have a significant impact on the company.

Of course, Cathay Pacific Airways also made efforts to put pressure on Luo Qihong himself at the board meeting of Kowloon Airways. Unfortunately, Luo Qihong directly said that he could buy their shares in Kowloon Airways at a high price.

The stationed director didn't dare to say anything. The shares he held were the only means to restrict Luo Qihong in the aviation field. How could he possibly give them to Luo Qihong?

This 30% stake was obtained by Swire Group through various means. How could it be returned easily?

Inside the Kowloon Airlines office.

Matic, the representative director of Swire Group, sat on the sofa, drinking coffee, with a slightly nervous look on his face.

"Luo Sheng, you have so many businesses under your control, there is no need to lose money in the aviation industry. If you have any requests, just let me know. I can help you submit them to the group's senior management."

"Mr. Matić, I have dealt with your Swire Group before. It cost a lot of money to acquire Swire Trading Company. But it's okay. I'll give you more." Luo Qihong smiled and said, "Now I really want to do aviation. I may do aviation in other countries in the future. Kowloon Airlines is just my test field." Matić's mouth twitched, "Why bother? The market in Hong Kong is only this big. There is no room for two airlines."

"Humph! Two? More than that, doesn't China Airlines count?" Luo Qihong laughed sarcastically, "Even if I can't run the business anymore, I will sell it to China Airlines, not Cathay Pacific."

"Mr. Luo, our bid will definitely be higher than China Airlines'. Do you have a grudge against money? Don't you want to make more money?"

Luo Qihong said, "I am a businessman, of course I want to make money. You are just a small director and senior executive, you can't understand the principle of 'losing money here and making big money elsewhere'."

"I don't want to do a one-size-fits-all deal. I may not make money from Kowloon Airlines, but I can make ten or a hundred times the profit from other places."

Matic is no small figure. He must have some skills to be sent to Kowloon Airlines to keep an eye on Luo Qihong.

Matic knew that Luo Qihong wanted greater benefits, and even guessed what Luo Qihong wanted, but the group would definitely not give it to him.

"Luo Sheng, tell me your conditions. There's no need to continue to argue."

"OK! Since you said so, I have two plans. One is that Kowloon Airlines will be handed over to Cathay Pacific for management. Cathay Pacific will hand over all routes from Hong Kong to the mainland to Kowloon Airlines, and I will be the major shareholder of Kowloon Airlines."

"The second option is that I want to invest in Cathay Pacific Airways and the equity I hold cannot be less than 15%."

Hearing this, Matic frowned deeply. This plan was a bit too much. The contents of both plans were beyond his power.

"Okay, I'll go back and ask the group's top management what they mean."

Looking at Matic's leaving back, Luo Qihong suddenly sneered. In his opinion, it was unlikely that the Swire Group would agree.

In fact, Luo Qihong had already had a conversation with China Airlines through Baoli Technology's channel. Unfortunately, China Airlines' bid was too low, and there were problems with the payment method. Not only did it not bear the interest on the installments, but it also extended the payment time.

This is not in line with the rules of the market economy. The interest collected from such a large sum of money in 2 or 3 years is more than 1 million. Not to mention that it is a hot spot for development now, it is not impossible to make several times the profit with this money.

China Airlines has a base in Hong Kong. As long as the policies are in place, it can compete with Cathay Pacific. That is why it does not attach much importance to the acquisition of Kowloon Airlines.

The Swire Group must have received similar news, which is why it sent someone over to test Luo Qihong's attitude.

"The Swire Group is really insightful. It can see the hugeness of the mainland market right away."

"Then let's fight slowly. I'm sure I can beat you anyway."

"Ha ha!!"

Luo Qihong's financial resources are too terrifying. Losing 5 million Hong Kong dollars a year is not a big deal. He can earn it back by simply going around in the market. This is why the Swire Group is panicking and willing to negotiate.

The previous boss, Cao Guangbiao, did not have such financial resources and could just barely hold on. It took the Swire Group several years to defeat him. Now Luo Qihong is countless times more powerful. The Swire Group is very afraid of the consequences. What should they do if they fail?
Luo Qihong's record in Hong Kong is so impressive that even the Jardine Matheson Group has been skinned dry. The Swire Group is also worried that it will be dragged down until Luo Qihong becomes strong in the aviation industry.

(End of this chapter)