Hong Kong 1980: The Savage Era

Chapter 379 380 [Weakness and Strength]

"4% equity!" Chen Yusan replied, "Shengyun Real Estate will also mortgage 6% of Hongji Building. I hope you can understand."

Luo Qihong laughed and said, "So, I used my money to buy the Hongji Building for you? This deal is very smart. Who came up with this idea?"

Luo Qihong has changed his mindset and is no longer willing to be taken advantage of by his family members.

"Don't worry, the rental income of Hongji Building will be settled every quarter, and we won't take advantage of you." Luo Qixing said seriously.

"Brother, you have already taken advantage. Isn't it a bit too much to say that you won't take advantage?" Luo Qihong restrained his smile and looked quite ugly.

"Ah Hong, it's all my fault. I said I'd keep half. Actually, we were planning to buy it back at the end of the year, after Shengyun Real Estate has recovered its investment in other projects, at the future price of the property." Chen Yusan quickly tried to smooth things over, "The increase in value and rent will be considered as the interest we give you. What do you think?"

Hearing this, Luo Qihong's anger subsided a lot. This was another way of borrowing money, and he was still willing to accept it.

"Not by the end of the year, maybe before October," Luo Qihong said.

Chen Yusan smelled something unusual and asked, "Why October? Is there any reason for this?"

Luo Qihong thought about it, and out of consideration for friendship and his parents' face, he explained, "There are some problems with the US market. There may be an economic crisis. I advise you not to invest too much and to withdraw some of the funds."

"Of course, you don't have to believe it. This is the result of my think tank's analysis."

Chen Yusan took a breath and adjusted her mood, "Then what do you think Shengyun Real Estate should do to maximize its profits?"

In Hong Kong, Luo Qihong is so famous. Whether it is cities or securities and stocks, Luo Qihong is an expert. Some people specialize in working on projects with De'an Securities Investment Company and make a fortune.

The wealthy ladies who were on good terms with Chen Yusan all wanted to get some clues from her, so Chen Yusan gradually became convinced of Luo Qihong's vision.

"Slowly sell off Shengyun Real Estate Company's non-core assets, recover funds and wait for the crisis to come," said Luo Qihong.

"How confident are you?" Luo Qixing asked indifferently.

Luo Qihong sneered and said, "I'm not sure. If you think it's credible, then believe it. If you don't believe it, I can't do anything about it."

How confident are you?
If it was an outsider, Luo Qihong would not want to pay any attention to him and would just turn around and leave.

He really has good intentions, not just bad intentions.

"Ah Hong, you should know Ah Xing's character better than me, don't mind it." Chen Yusan said, "So should we stop the transaction of Hongji Building?"

Luo Qihong frowned slightly and asked, "Can you settle this 10% debt before October?"

"It's difficult! The debt of 2.2 million yuan already accounts for half of Shengyun Real Estate Company's market value. We can try our best to resolve the debt of 1 million yuan and reduce the company's debt ratio to 40%." Chen Yusan said thoughtfully.

"We can sell Shengyun Printing, which should be able to solve the debt of around 4 million," said Luo Qixing.

"If I were you, I would sell off all the non-core properties and securities stocks, reduce the debt ratio to 3%, and then gather a large amount of funds in my hands." Luo Qihong sighed, "You can also sell off some of Shengyun Real Estate's shares. You also need to have a certain amount of funds as an individual."

"The matter of Hongji Building has been settled. Please let me know to transfer the money to you."

After saying that, Luo Qihong left the study room, having said what he should and shouldn't have said. Luo Qixing and his wife, who stayed in the study room, pondered over Luo Qihong's words. They still didn't quite believe it. The current market situation was good, and the possibility of a sudden collapse was very low.

"Ah Hong will not lie to us, and his judgment has never been wrong. For example, the sharp drop in small and medium-sized stocks in 85, didn't Ah Hong predict it?" Chen Yusan said.

"That makes sense, but we still have to leave some room. I accept the suggestion to reduce debt, but I think we should wait and see about the suggestion to sell off all non-core properties," Luo Qixing retorted.

In fact, Luo Qixing was still somewhat dissatisfied with his younger brother. He believed that since they were born to the same parents, he should have corresponding intelligence and talents.

At the same time, he also wanted to prove it to Chen Yusan and didn't want to lose face in front of his wife.

The Peninsula Tsim Sha Tsui
This is a private room inside the hotel, decorated extremely luxuriously, like a European royal castle.

There were only two people in the private room, Luo Qihong and Michael Kadoorie.

After a few minutes of greetings, Michael got down to business. "Mr. Luo, our two families have been fighting for quite some time. I think you've suffered a lot. How about we just stop here?"

"Mr. Michael, it's useless to say these empty words. I have some understanding of your family's Grand Hotel Group and China Power Group. Those losses are acceptable to me, including the full acquisition of the Grand Hotel Group."

"But your family is different. Most of the investment is in China Power Group. I'm afraid it will be difficult to stop my full acquisition."

"My request is very simple. Give me the power of the Liang family in the Grand Hotel Group, and I will stop. Otherwise, it will be difficult to resolve the issue."

Luo Qihong said these harsh words with a smile on his face.

Michael was a little embarrassed and asked, "Can Luo Sheng promise not to acquire the entire hotel group?"

"Mr. Michael, if you were willing to negotiate at the beginning, I think I could guarantee it, but I can't do it now because I am the dominant party and you are the weak party."

"I don't agree with what Luo Sheng said. Luo Sheng uses his two private companies to hold shares in the hotel. We can complain to the committee, and Luo Sheng will be in trouble." Michael threatened.

"There will be some troubles, but they are all controllable." Luo Qihong said, "Once the relationship breaks out, I will have no choice but to acquire the whole company. Can Mr. Michael really stop it?"

Michael was silent for nearly a minute, then said, "To be honest, Luo Sheng's reputation is scary. I don't dare to take the risk of letting you join the Grand Hotel Group. How about Luo Sheng reducing his stake and I find someone to take over?"

"Mr. Michael, I think you are mistaken. Your request is harsh, but mine is in compliance with Hong Kong Company Law. You have been working with other shareholders to block me from the board of directors of the Grand Hotel, which is not in line with morality." Luo Qihong said, "And I have been patient. Aren't you worried that I will lose my mind?"

"Mr. Luo, please give me some more time. I will convince the other directors as soon as possible." Michael said.

"Okay, the deadline is before October. If I still can't enter the board of directors and get the power I deserve, I will launch a comprehensive acquisition. I hope Mr. Michael can understand." Luo Qihong picked up the wine glass, gestured to Michael, and then said, "Goodbye!"

Michael was slightly stunned. He didn't expect Luo Qihong to be so ungentlemanly and leave without saying a word.

"Barbarian! He is a powerful barbarian. Can we really win?" Michael murmured to himself. He didn't drink the wine in the glass until Luo Qihong disappeared.

If it weren't for Lawrence and Horace's obstruction, Michael would still be willing to let Luo Qihong join the board of directors, and he would make friends with Luo Qihong so that he would have no reason to attack the hotel.

If it were the Kadoorie family of the 70s, Michael would have carried out the orders of his elders without compromise, but the Kadoorie family now is too weak to defeat the strong Luo Qihong.

(End of this chapter)