Hong Kong 1980: The Savage Era

Chapter 55【Where are your faces?】

Monday, December 81, 3
All the shares of Jide Real Estate held by Dehe Real Estate Company have been sold, with a profit of 922.4854 million yuan, and Luo Qihong received half of it, or 461.2427 million yuan.

此时，罗齐鸿拥有812.3万元的资金、价值118万元的10万股恒隆公司股票、价值528万元的30万股中华巴士公司股票、信和置业公司价值120万的60万股认购股票以及德合地产公司50%的股权和投资的2百万元。

These funds are not enough to save a listed company on the verge of bankruptcy, at least not enough to complete the restructuring of assets and debts.

Arriving at the Waldorf Astoria Company in Central, Luo Qihong obtained the latest detailed information about the Paramount Restaurant Company. At the same time, Liang Botao explained the current situation of the Paramount Restaurant Company.

"Xu Haizhi, chairman of the Paramount Restaurant Company, has already made a clear plan to withdraw. However, he is a cunning man and I am afraid he will not give up the Paramount Restaurant Company easily. Even if he can take it over, it will take some trouble." Liang Botao said, meaning that Luo Qihong should be prepared to spend a lot of money.

Luo Qihong flipped through the documents and responded, "Since it's so difficult, shouldn't we have a backup plan? Is there a better option than Paramount?"

There was not enough money to begin with, and Luo Qihong certainly didn't want to spend more money. Xu Haizhi wanted more money, so they had no choice but to part ways and let Xu Haizhi sink the Paramount Company.

"I am more optimistic about Jingsheng Real Estate Company. This company owns a large number of residential and commercial properties. Due to the failure in residential land development in recent years and the impact of the real estate crash and stock market crash in 73, it has not yet recovered. Its debts are somewhat serious, but the situation is better than that of Paramount Company. It does not need much funds for restructuring. Its major shareholder is very anxious to get rid of the burden of Jingsheng Real Estate Company." Liang Botao said.

Liang Botao is not clear about Luo Qihong's entire financial situation, but he has some guesses about Luo Qihong's financial resources. He thinks that Luo Qihong will encounter bad situations in the process of restructuring the company, so he now believes that Jingsheng Real Estate Company is more suitable for Luo Qihong.

Luo Qihong is not the kind of person who believes whatever others say. Once he has made up his mind, he will give it a try. Even if he fails and suffers losses, it will only be a few hundred thousand.

"Okay! Then Jingsheng Real Estate Company will be our backup. If we can't reach an agreement with Paramount Company, we will immediately turn to Jingsheng Real Estate." Luo Qihong immediately decided and said, "What is the current share price of Paramount?"

"0.3 yuan per share, market value of 2610 million yuan, asset value of 4930 million yuan, and net assets of only 25%, or 1232 million yuan. There are a large number of scattered shares in the market, accounting for about 40% of the total share capital. If you take action, you can acquire about 28% of the shares, which will cost 730.8 million yuan." Liang Botao answered in detail.

Hearing this number, Luo Qihong was silent for a moment. If he acquired 28% of the shares, he would only have 80 yuan in funds left, and the issuance of new shares would have to be postponed.

"Xu Haizhi, the major shareholder of Paramount, holds 33% of the shares. If you sweep up the scattered shares on a large scale, it is not impossible for you to hold more shares than Xu Haizhi. However, Xu Haizhi has been running Paramount for a long time, and there is a high probability that those directors support Xu Haizhi. So even if you hold 40% of the shares, you may not be able to control the board of directors of Paramount." Liang Botao advised.

"Then can I take action against those shareholders?" Luo Qihong did not want to issue new shares because the prerequisite for issuing new shares was to control the board of directors. Anyway, restructuring assets and debts was difficult, and making profits from the stock market to solve the debt problem was a foregone conclusion.

"Of course you can, but we have to be fast enough. Xu Haizhi can't profit from it for the time being and will definitely stop us. If you are intercepted, you will be very uncomfortable." Liang Botao said.

"I know! Then please ask Mr. Liang to start purchasing stocks and investigate the shareholder information of Paramount Company." Luo Qihong said seriously.

If the acquisition is to be fast enough, then there must be sufficient funds, so Luo Qihong’s next task is to raise more funds.

Back to North Point Wo Hung Properties
Yan Leduo from Lok Fu Real Estate Company had been sitting on a chair waiting for a long time. When he saw Luo Qihong, he took the initiative to stand up and greet him, "Mr. Luo, you are really busy. What are you busy with recently? I haven't seen you much in North Point." With the support of Haofeng Real Estate Company, Fenggui Development Company began to become wealthy and powerful. Seeing that Hehong Real Estate Company only charged 2% commission, it immediately adopted the strategy of "only charging 4% commission, and returning 6% commission equally to buyers and sellers", which messed up the intermediary market in North Point. Those peers cursed Fenggui Development Company.

The colleagues who were previously "sitting on the sidelines and watching the show" began to think about forming an alliance to jointly deal with Fenggui Development Company, hence Yan Leduo's current visit.

"I'm not busy. I'm just hyping up some properties. Agents can't make much money." Luo Qihong smiled slightly. "What's the matter with Mr. Yan coming to my house in person?"

"I'm going to take a client to see a house. You take care of the store." Guan Jiahui glanced at Yan Leduo. It was all this guy's fault. He had wasted so much of her time.

Seeing Guan Jiahui's dissatisfaction, Luo Qihong smiled and nodded, "Go ahead, I'll take you to Taikoo City for a stroll in the evening."

"Hmm!" Guan Jiahui snorted, and her dissatisfaction eased a little.

Yan Leduo was an old hand. He knew the reason but he was not embarrassed at all. "Luo Sheng, I think you should have heard about the comeback of Fenggui Development Company. Our colleagues are planning to unite to deal with Fenggui Development Company like they did last time."

"Mr. Yan, I reminded you last time that you didn't want to intervene. Now I have a countermeasure. There is no need to participate in your alliance. You can do it on your own." Luo Qihong said with a bad face.

"Mr. Luo, charging 2% ​​commission from Hehong Real Estate is a strategy that will cause you to lose a lot of money, or even make ends meet. It would be better for you to join forces with us and charge a unified 35% commission. This way, you can earn an extra 15% commission and maintain a balance between income and expenditure." Yan Leduo persuaded.

Luo Qihong raised his lips and smiled, "Mr. Yan, you just heard it. I have other business to do. I can't take care of the agency business. As for the shop rent, labor costs and so on, I don't need these two or three thousand yuan."

"I'm not Zhong Wuyan, and you're not the King of Qi, you can do whatever you want to me." Luo Qihong cursed in his heart.

Yan Leduo stole a glance at Luo Qihong and still wanted to persuade him. One more person means more strength. "Mr. Luo, I know that what we did before was not right. We suffered heavy losses in the previous confrontation, and we relied on this period of time to make up for the losses. Although you have other sources of business, the business in North Point has a lot of profits, otherwise you would not give up and continue to operate it."

"Mr. Yan guessed wrong! It's not about profit, but other reasons." Luo Qihong said lightly, "If Mr. Yan has nothing to do, go back and have a rest."

Luo Qihong started to serve tea and see the guests off. He didn't even say sorry after doing something wrong and he still shamelessly thought it was his due. It was really annoying.

Seeing this, Yan Leduo stopped trying to persuade him. After all, Luo Qihong was just a store, and even with its low prices it wouldn't occupy much of the market. He just came here to give it a try, and there would be no loss if he failed, so there was no need to continue persuading him.

"Hmph! A bunch of selfish guys! It's too late to think about the alliance now. As long as I don't fail, Haofeng Real Estate will not recover its investment so quickly. Fenggui Development Company will hold on for a long time this time, which will be enough for you to suffer." Luo Qihong didn't think there was anything cruel about it. The adult world has always been like this. Once you make a choice and a decision, don't blame others for any consequences.

The next day, those colleagues began to reduce their commission to 3%, which was 35% lower than the 5% mentioned by Yan Leduo. This strategy naturally attracted many customers back, but colleagues began to use various means to snatch customers in order to make more money.

(End of this chapter)