Hong Kong 1980: The Savage Era

Chapter 50 [Fish on the Hook]

"Do you want to do the partition business or speculate in properties?" Lin Luoqi asked. He felt that the possibility of carrying out both projects at the same time was the smallest, and Luo Qihong did not have so much energy.

"Which one do you think is better?" Luo Qihong really hadn't made up his mind yet.

Lin Luoqi laughed and said, "I think this is definitely the most profitable hype."

"Okay, then let's hype the property. I'll look for a target first." Luo Qihong smiled slightly. The fancy sedan was carried by everyone, so Lin Luoqi's face naturally had to be taken into consideration.

Dehe Real Estate Company
Luo Qihong rented an office with an area of ​​13 square feet on the 746th floor of Du Laozhi Building in Wan Chai. He now has three permanent employees, who are basically salesmen and do some simple work. However, the salary is not low. Luo Qihong paid them 3 yuan.

"Pa pa!" Luo Qihong clapped his hands, attracting the attention of three employees. "The company made a lot of money this time, so I'll take you to celebrate. What do you want to eat?"

The employees looked at each other in bewilderment. They had just been employed for a few days, how could such a good thing happen?

"What? You don't want to go?" Luo Qihong understood why they reacted that way, so he spoke in a joking tone.

"Can I eat anything?" asked Chen Shanru, a slightly plump female employee with a round face.

"The budget is 4 yuan. As long as you don't exceed the budget, theoretically you can eat as much as you want." Luo Qihong smiled. If the company makes money and rewards these employees a little, they will have more centripetal force.

"Shall the four of us go?" Chen Shanru continued to ask.

After explaining everything to them, Luo Qihong returned to the office and re-analyzed the previous bankrupt company information in an attempt to find the most suitable company to start with.

This time we need to find two companies. The first one, which is also the best one, will be used for private acquisition and the "treasure hunt" target after the acquisition of China Bus Company is completed. The second one will be used to implement the "sniper" plan, and the situation cannot be too bad. It must be at least the second best company among the information on hand.

Jide Real Estate Co., Ltd., which was placed first by Liang Botao, attracted Luo Qihong's strong attention.

It is now February of 81, and the prices of industrial building-type properties have stopped increasing. However, prices will not drop immediately because the local market is still very prosperous.

Most of Jide Real Estate's assets are industrial building properties. If the price of industrial land falls after the acquisition, the price of the industrial building will definitely not be maintained, and Jide Real Estate's operating conditions will become worse and worse, seemingly forming a huge pit.

"Okay! I choose you." Luo Qihong showed his sharp white teeth.

He then continued to select listed companies suitable for his own operation, and finally found that some companies did have good qualifications, but his funds were very limited. Taking into account the future profits from the acquisition of China Bus Company, the funds that could be mobilized were about 1300 million yuan, which was not enough to save some companies with high asset values.

"Liang Botao still has some knowledge. He can actually see that I don't have much money. Then let's go to Paramount Company. The 1300 million integration funds of this company are enough." Luo Qihong put the information on the table.

The Paramount Restaurant Co., Ltd. was listed in the second half of 72. At that time, the listing conditions were very relaxed. As long as the asset value exceeded 2 million and some shares were given to the directors of the exchange, it could be listed.

As a result, in 72, nearly 1 companies in Hong Kong were listed on the stock exchange, doubling the size of Hong Kong's stock market.

After experiencing the stock market crash in 73, the Hong Kong government has increased the difficulty of listing and established regulatory departments and regulatory systems for the securities market, leaving no such loopholes to exploit.

In 72, Paramount Company raised more than 2 million yuan and bought a large number of properties with loans, including many offices and office buildings in Central, Wan Chai and Kowloon. Unfortunately, when the property prices were slightly higher in 77, the chairman of the board of directors of Paramount Company, Hui Hoi-chi, sold a large number of them. Although the company's debt ratio was temporarily reduced, seeing that the land market was so hot, he bought a lot of land in the New Territories, especially the new towns launched in the late 70s, Yuen Long and Tai Po. Now a large amount of funds are locked up in these, and with the sluggish catering industry, the other debt interest can only be repaid by rent, and Paramount Company is surviving.

After figuring out the outline of the matter, Luo Qihong spent two hours making a crude plan and went to Huoduoli Company to find Liang Botao.

Small reception room of Waldo Company
There was a cup of steaming coffee on the table in front of both of them, and the bitter yet fragrant aroma wafted through the entire reception room.

Luo Qihong handed his plan to Liang Botao and said, "Mr. Liang, I want to pretend to acquire this company. The acquisition should be slower and have more loopholes, but it can't be too obvious so that people can't find out that there is a trap."

The sniper tactics had not yet appeared. Even financial securities talents like Liang Botao did not know what Luo Qihong wanted to do. It was not until he finished reading the plan that he roughly understood what Luo Qihong wanted to do.

"Does Luo Sheng want to use other capital to raise the stock price and make a fortune in the end?" Liang Botao asked. "I have a question. If the target capital does not come out, Luo Sheng will not be able to achieve his goal at all."

"What Mr. Liang said is possible. In that case, I can only take over Jide Real Estate Company and do everything I can to run it well." Luo Qihong said with a faint smile.

If Lin Luoxun really doesn't fall into the trap, Luo Qihong will take over Jide Real Estate Company and quickly sell all its industrial buildings and industrial properties to recover the funds, reduce losses, and then find ways to increase capital.

Although there are losses, Luo Qihong does not think that the debt ratio of Jide Real Estate Company cannot be reduced. After all, he is a "prophet".

"In that case, when should I start buying shares of Jide Real Estate Company?" Liang Botao asked.

Luo Qihong replied, "Starting tomorrow, I will transfer 4 million in start-up capital from Dehe Real Estate Company. The current share price of Jide Real Estate is 0.6 yuan, with a total share capital of 4100 million shares and a market value of 2460 million yuan."

"Mr. Liang needs to use 3 million of it to secretly purchase 0.6% of the shares at a price of 12 yuan. Wait for my notification regarding the meeting with the shareholders. Mr. Liang just needs to make preparations for this."

"Okay! I will cautiously slow down the time to acquire 12% of the shares." Liang Botao understood all of Luo Qihong's plans.

In the next few days, Luo Qihong met with Lin Luoqi frequently, and sometimes he deliberately said something to let the traitors of the two brothers Lin Luoxun and Lin Luoshi in Yiren Real Estate Company know.

Office of the Deputy General Manager of Haofeng Real Estate Company
Lin Luoshi said to Lin Luoxun, "I have already found out that Lin Luoqi and Luo Qihong are preparing to acquire a company called Jide Real Estate. The company's operating conditions are also not good, but if there is new capital injection, it should be able to change the operating conditions and get rid of the crisis."

"We failed at Yiren Real Estate Company last time, largely because we acted too late. We must act earlier this time, otherwise Lin Luoqi will take over Jide Real Estate again."

Lin Luoxun was still very cautious and found something strange. "They kept it so secret last time, how come they let us know so easily this time? I'm afraid there's something fishy going on."

"Brother, you are too timid. Even if they set a trap, the Jide Real Estate Company can't be fake, right? The situation of Jide Real Estate is not something they can cover up with one hand." Lin Luoshi said impatiently.

Lin Luoxun also didn't want Lin Luoqi to acquire another listed company. The current market value of Yiren Real Estate Company exceeded 1 million yuan. If Jide Real Estate was added, the market value would at least reach 1.5 million yuan.

If Lin Luoqi continues to develop in this way, it will seriously affect his status in the Lin family. The eldest son's inheritance right is nothing but a joke in the eyes of many people. The family has always been a place where the capable are promoted and the inferior are eliminated.

"Go and check the details of Jide Real Estate Company first. Don't miss anything. Find out as much as you can today, and we'll start tomorrow." Lin Luoxun said thoughtfully, his face very solemn.

(End of this chapter)