Hong Kong 1980: The Savage Era

Chapter 77 [Acquisition Case Breaks Out]

Luo Qixing doesn't quite understand all of this, but he can learn slowly. Of course, considering Luo Qixing's stubbornness, this will be a long process.

Doing business requires taking risks, especially during the period of expansion. The so-called gradual progress is nothing more than an approach and plan that is completely unable to understand the situation clearly and is not suitable for the Luo family's current situation.

In fact, Luo Qihong didn't know much about the printing industry, but he was bold and had financial resources. Even if there were problems with the family business, he could invest money into it. It was a simple matter to preserve the original family business.

After reviewing the financial documents, the three of them immediately went to the law firm to sign the contract. The Luo brothers successfully acquired Shengyun Printing Company for 57 yuan. They then met with the five workers and announced that the boss had been replaced.

"I've checked. The factory on the third floor can accommodate two more machines, but the working environment will be worse. I think we'll need to recruit people later. If there's a chance, we'll rent the other half of the floor." Luo Qihong continued, "I plan to let Dad be the general manager of the company, and you be the deputy general manager. You can learn to manage it slowly. Anyway, the scale is not very large."

"Yeah!" Luo Qixing nodded. He suddenly remembered what Lin Ya said: Ah Hong is setting up a family business for you. You have to learn how to do business by yourself. It is not a solution to always trouble your younger brother. So he secretly made up his mind to study hard and must learn how to do business.

According to the current scale of Shengyun Printing Company, it has a profit of 2 yuan per month. Although it is not much, it is very promising. This is just the starting scale and it will definitely continue to expand in the future.

Luo Qihong is not interested in the printing industry, which is greatly affected by the environment and is not a stable industry.

Based on his research on the four major families in the previous life, he felt that in order to have a solid foundation, there must be a background company with a stable source of income, such as the Chow Tai Fook Jewellery Company of the Cheng Yutong family, the Kowloon Motor Bus Company of the Kwok Tak-seng family, the China Gas Company of the Lee Chiu-kee family, and the Electric Light Company of the Lee Ka-shing family.

Therefore, he must own a fairly stable company as the foundation of his family before he can really make his fortune.

Paramount Restaurant Corporate Office
Su Qishan stood in front of the desk with a very respectful look. He had already been convinced by the young boss Luo Qihong. It turned out that being old only meant accomplishing nothing, and the rest of the experience was just an excuse for not working hard.

Luo Qihong glanced at Su Qishan and said, "Sit down, why are you standing?"

"Thank you, boss!" Su Qishan then pulled out a chair and sat down.

"Don't tell anyone about the Sham Shui Po warehouse yet, and keep the information safe." Luo Qihong said seriously, "The company does not have the funds to start the project yet, and it will take some time to recover the funds."

"Yes, I understand. I will keep it a secret." Su Qishan promised seriously.

The survey report submitted by Su Qishan was very detailed, especially in terms of the location distribution of warehouses in the Sham Shui Po area, population density, recent statistics on the number of vehicles entering and leaving, and the required parking spaces.

Luo Qihong plans to convert the Sham Shui Po warehouse into a parking lot and then sell it to a parking management company, which should make him a lot of money.

Sham Shui Po is one of the most densely populated areas in Hong Kong. In addition, the land is expensive and there are many residents. Even if one wants to demolish and rebuild the tenement buildings, it will take a lot of manpower and material resources, and the profit will be greatly reduced. Therefore, many real estate developers are unwilling to develop these tenement buildings.

Li Zhaoji, who specializes in demolition and reconstruction business, is very secretive about the tenement buildings in Sham Shui Po and dares not to act rashly.

Although the residents there are not very rich, the population base is large and the parking lot still has a large market. It's just that it requires dealing with community groups, which makes Luo Qihong a little hesitant.

"I have also read the other property information you submitted, and they are all quite detailed. The company is very interested in the Shifeng Building, which is about to be completed and sold in Sheung Wan. You should keep up the good work and continue to dig up information about the Shifeng Building. The company's goal is to acquire the entire Shifeng Building." Luo Qihong crossed his fingers on the table and said to Su Qishan.

The Summit Building in Sheung Wan was built in early 1980. It has now been renovated and will be sold soon. It is a medium-sized commercial building with 21 floors and a floor area of ​​25.2 square feet.

According to the current price of commercial buildings in Sheung Wan, the market value of Shifeng Building is about 7 million yuan. Paramount Company can barely acquire this commercial building and raise half of it in cash, and the remaining half needs to be financed by a bank loan.

Su Qishan's eyes widened, his face full of shock. The previous market value of the company was only 5 million, and now it wants to acquire Shifeng Building with a market value of more than 7 million. Isn't this a gamble?

"Don't worry about other things. Collecting information is your full-time job. You can also contact the owner of Shifeng Building and reveal our intention to acquire the entire commercial building to test the owner's attitude." Luo Qihong ordered. "Yes!" Su Qishan began to think about Luo Qihong's development strategy. He felt that Luo Qihong was very courageous and resourceful. This might be his chance to become a superior person.

Luo Qihong naturally knew the difficulty of acquiring the Summit Building in Sheung Wan, but once the building was acquired, the share price of Paramount Company would immediately see a new increase, and the market value could even soar to 1 million yuan, which is a threshold for a company.

Having entered the club of companies with a market value of 5 million yuan, Paramount Group’s next goal is to have a market value of million yuan.

Jingle Bell! !

Inside the office, the telephone from the turn of the century rang.

Luo Qihong answered the phone, and his face became serious after a moment. Just as he was about to leave the office, the phone rang again.

After much consideration, Luo Qihong came to Sun Hung Kai Securities to meet Bai Jinyan.

"What's going on? Do you know what has touched the nerves of Sun Hung Kai Properties?" Luo Qihong asked in a deep voice.

Bai Jinyan immediately replied, "I don't know, but it's definitely not caused by our secret purchase. Sun Hung Kai Properties has always known about our existence, and it is highly unlikely that they would suddenly make a move. The proportion of their acquisition should be around 20%, not more than the Lei family."

The secret purchase is to narrow the gap and gain an advantage in shareholding ratio. Merely maintaining a tie is certainly not the goal of Sun Hung Kai Properties.

"You mean the Lei family discovered something, took private emergency measures, and alarmed Sun Hung Kai Properties? How many shares have we acquired?" Luo Qihong knew that there would not be much benefit in continuing to investigate the cause at this point. What he needed to do now was how to deal with this emergency.

"81.4 shares, consuming 407 million yuan, and there is still an account balance of 93 yuan." Bai Jinyan reported.

"What's the current stock price?" Luo Qihong continued to ask.

"It has just risen to 5.3 yuan, and it should be more than that price now." Bai Jinyan said.

Luo Qihong stroked his chin and thought about these things thoroughly. "Are there any signs that the Lei family will fail in the stock market?"

Bai Jinyan shook his head slightly and said, "No, for now, only Sun Hung Kai Properties is buying up a large number of scattered shares."

93 yuan cannot sustain the acquisition for long, but without bidding, it is difficult for the stock price to increase significantly. It is also possible for Sun Hung Kai Properties to acquire scattered shares to the target proportion.

"Place a high-price buy order immediately and purchase small quantities. The purpose is to raise the stock price as much as possible." Luo Qihong gave the order helplessly.

Bai Jinyan reminded him, "93 yuan won't last long. Do you have other funds to inject?"

Luo Qihong shook his head. "There is no other funds, only this 93 yuan. How to operate it depends on your ability. If you can't do it, I can do it."

Although Luo Qihong is not as professional as Bai Jinyan, he has some memories of his previous life and thinks he will have some unexpected gains.

Bai Jinyan certainly didn't admit defeat. Otherwise, how could she gain a foothold in Sun Hung Kai Securities if the news got out? "Let me do it."

(End of this chapter)