Chapter 138 138 [Finally we can take action]
“Most of what we robbed is our business, and a small part is from our peers.” Luo Qixing muttered, “There should be some remaining production capacity of those two companies. We need to continue to grab business.”
“What conditions did Yulang International offer?” This is normal business behavior, and Luo Qihong can’t say anything.
When others use normal business methods to do things, he can only return them in the same way.
“The price is 15% off the market price, which is 15% cheaper, but it requires a long contract period and high breach of contract fees.” Luo Qixing said with a solemn expression.
Luo Qihong pursed his lips and said with a smile, "Have you calculated the price so that we will not lose money?"
The printing company is privately owned by the Luo family, and the production capacity is idle. It is better to calculate Huang Yulang and vent his anger.
Even if he loses money, the Luo family can afford it. Now it’s just a little less profit, it’s not a big deal.
“60%, at least 60%, we won’t lose money.” Luo Qixing seemed to have a draft in mind.
Luo Qihong glanced at Luo Qixing. This eldest brother had prepared in advance, "Then we will directly reduce it to 70%, and we will also sign long-term and high liquidated damages contracts with these customers."
"." Luo Qixing was silent for a while and responded, "If we do this, other customers will also ask for a price reduction of 70%, so what will we do then?"
"Reduction in price, all prices! But we can set There is a threshold, and the quantity will be 70%. Use quantity to earn back the previous profits. "Luo Qihong is not willing to cause losses to the printing company, but with the example of Yulang International, price reduction will be a matter of time.
“Then we have to purchase new equipment?” Luo Qixing felt that such a move was too big and the company’s funds would be exhausted.
"Brother, of course you have to think about expanding the scale when doing business. If you just want to stick to it, you will only be eliminated by the market and eventually end up bankrupt." Luo Qihong said seriously, the market has always been like this, and it will only remain unchanged. Out.
"I will give you 200,000 yuan later. You will pay the down payment for the equipment first and the rest of the loan." Luo Qihong added, "Or we can increase the supplier's raw material prices, but this will easily arouse criticism from peers. Our resentment puts us in the same predicament as Yulang International.”
"The price reduction in business was initiated by Yulang International Company. We are well-known for our work, and we have been robbed of so much business. Our peers can only complain a few words." Luo Qixing said, "Raising the raw material prices of suppliers will make us internally and externally It’s not human, so don’t do it.”
Luo Qihong nodded, “Actually, it won’t have much impact on us, it’s just that those small workshops will be miserable.”
“There’s nothing we can do about it. Things." Luo Qixing sighed, and he finally understood why some bosses always said they had no choice but to do something.
"Then put up an announcement and purchase equipment and recruit employees as soon as possible." Luo Qihong said.
The affairs of Shenyun Printing and Shenbao Printing Company are all small matters, and the next thing will be the ‘big scene’.
In order to maximize profits, Luo Qihong sold the nearly completed Southeast Tenement House in Kowloon City to Siu On Real Estate Company for 19 million yuan.
This transaction was not publicized. Firstly, the sale price of Paramount Company has been set, and secondly, Luo Qihong did not want people like Li Fushu to lose face and cause displeasure to each other.
Parlem Company did not suffer losses. It made a profit of 1.3 million yuan on the Southeast Tenement House project, but it was just not as much as Luo Qihong expected.
This 19 million yuan payment was not paid in one lump sum, but in three months. Even the down payment of 3.8 million yuan had to be delayed.
Zhaoan Real Estate has been having some financial difficulties recently and needs to slow down. Moreover, Paramount Company is about to be sold. Luo Qihong naturally wants to put the interests of Zhaoan Real Estate Company first, not Paramount Company. Lomon Corporation.
It is estimated that there will still be more than 3 million in profits from this project, which is not a small amount for Zhao'an Real Estate Company.
In the office of Siu On Real Estate Company
Luo Qihong is carefully sorting out the information. Siu On Real Estate Company has a debt of more than 100 million yuan. Its current main properties include Ludao Building in Wan Chai and On Paradise Building in Central. , the asset value exceeds 300 million yuan, the debt ratio has exceeded 50%, and the market value is around 140 million yuan, which is not much different from the net asset value.
The plan of Zhaoan Real Estate Company to solve part of the debt is already being implemented, which is the 'acquisition case of Best Real Estate Company'. Once successful, Zhaoan Real Estate Company should be able to make tens of millions of yuan in profits and solve 20% of the debt. to 30% debt, the debt ratio will drop to about 45%.
The debt ratio of 45% is naturally still high. Since Zhaoan Real Estate Company will generally not withdraw funds from the city, Luo Qihong does not want to use the method of strengthening Paramount Company and Hongpu Real Estate Company to hype Zhaoan Real estate company.
Fund-raising and rights issues are not feasible for the time being. He is currently short of personal funds and will soon have a large amount of debt. This will only make Luo Qihong's personal situation more difficult.
"It seems that the only way to make money is from the stock market. Private debt will increase to 710 million yuan. Even if there is an acquisition like Wharf, it will be difficult to repay half of the debt." Luo Qihong feels 'pressure' Shanda'.
But what is gratifying is that the "Inherited" China Gas Company is about to be taken over. In the future, Luo Qihong will definitely have a seat among the top 20 chaebols in Hong Kong.
China Gas Company has been controlled by Wheelock Company for many years, and it is a British-owned enterprise. There must be many foreign senior executives inside. Although there is an example of Li Jiacheng taking over Hutchison Whampoa Company, Luo Qihong is not Li Jiacheng. There are not many talented people, and it is not easy to control the China Gas Company.
So, Luo Qihong had already talked about the issue of personnel retention during the negotiation with Li Fushu that day. The employees who are now confirmed to be taken away include Secretary Cheng Jianshen, Information Integration Department Manager Su Qishan, and two property departments Managers Kang Wenyi and Zhao Kai and 11 junior staff. This is Luo Qihong's entire team at Paramount Company, accounting for a quarter of the staff of Paramount Company.
Of course, some of these people are unwilling to work for Towngas Company, but Siu On Real Estate Company can also provide some staff for this purpose, and the total will not exceed 30 people.
Facing the China Gas Company with hundreds of employees, this is really not enough, but this is the result of Luo Qihong's efforts.
For the current plan, we can only win over a group of people within Towngas Company and suppress a group of people. By this time next year, things may be much better.
There are still 11 months until next year's 'Iron Lady Wrestling', but Zhao'an Real Estate's debt plus private debt is close to 900 million yuan, and Luo Qihong still has to save in advance for the 'big slump' period It’s really difficult to get a sum of cash.
This slump will last for 2 years, and Zhaoan Real Estate Company's current rent will only decrease, or even drop to 40% of the current level, so it will not be able to do much.
The relationship between the stock market and the local market is inextricably linked. If the local market falls, the real estate stocks on the stock market will definitely have a hard time, and the financial sector will also be hit hard.
However, Luo Qihong remembered that Liu Luanxiong's Aimego Company was listed in 1983 and was sought after by many investors, so there must be some hope for industrial stocks.
But it won’t be too good, because real estate and finance are the pillar industries in Hong Kong.
Most of Luo Qihong's funds come from the stock market and local markets. Once he cannot make profits from it, it will be like breaking an ordinary person's legs, and individuals and companies will only suffer huge losses.
Therefore, Luo Qihong needs to find two other businesses to replace the sources of funds from the stock market and real estate, even if the amount of funds is far less than the stock market and prefecture-level cities.
The domestic demand in Xiangjiang will not change significantly in a few years. It is mainly export and transshipment. For example, Liu Luanxiong's Aimeigao exports classical fans to South America and Europe.
"It seems that we can only do trade or export business such as electronics and food." Luo Qihong said with a sigh.
In Luo Qihong's impression, Xiangjiang's trade has been controlled by a few large foreign companies, such as Jardine Matheson, Hengchang Enterprises, Li & Fung Company, and other trading companies.
However, the trading plate is much larger than the electronic plate, and the profit is much greater.
Therefore, Luo Qihong immediately summoned Su Qishan and asked him to start collecting information on the three industries of Hong Kong: trade, industry, and food. He needed to pay special attention to those large companies.
Su Qishan was naturally shocked that he actually started to enter other industries.
Su Qishan knew that other industries were in deeper trouble than the real estate industry, but he felt that Luo Qihong had hundreds of millions of funds in his hands, and it was unclear whether he could carve out a way out in these industries.
Conference Room of Wheelock Building in Central
Luo Qihong, Li Fookshu, John Madden, and Zhang Yuliang (the major shareholder of Wheelock Company) were sitting in the conference room, and John Madden sat in the first chair as chairman of Wheelock's board of directors.
Zhang Yuliang was born in the Zhang Zhushan family. He was originally a Western medicine agent. In the 1960s, he began to enter the real estate industry. His family owns large properties in Mid-levels, Causeway Bay and other places. The federal and international buildings that were sold are the representative buildings of his family.
The Zhang Zhushan family is very low-key, and can even be called the most low-key Chinese family in Hong Kong. Its family assets are probably worth several billion yuan, which is no less than the market value of Wheelock Company. They are very wealthy. family.
Zhang Yuliang's personality and style are "solitary" (stingy), and he has never been generous to himself, let alone his family members.
“Both of you should have seen the acquisition plan I submitted. Based on the current stock price of 11.2 yuan, a premium of 20%, which is 13.5 yuan, Wheelock Company holds 31% of the shares of Towngas Company and needs funds. 837 million yuan," Luo Qihong said with a smile.
Negotiations are all about bargaining, and there is no way to reveal your trump card directly at the beginning.
"Luo Sheng, we at Wheelock Company have no intention of selling the equity of China Town Gas Company. I see that you only do it for Li Sheng's sake, and the price you offered is too low and unattractive." Zhang Yuliang met John Madden Without speaking, he spoke.
Luo Qihong glanced at Li Fushu and said with a smile, "Since Zhang Sheng thinks the price is low, let me raise it to the top. How about a 30% premium?"
At this time, John · Madden said, "30% is still low. As we all know, China Gas Company is an extremely high-quality industry, comparable to Xiangjiang Electric Company and China Electric Power Group. It is the only gas and natural gas company in Xiangjiang. I think a premium is needed 8 Success will do.”
80% premium!
This offer shocked Luo Qihong. If he purchased it at this price, he would have to pay 1.25 billion yuan in cash.
"Mr. Madden, this price is really too expensive. How about I give you another 10% premium for a total premium of 40%?" Luo Qihong quickly lowered the price.
Li Fushu helped persuade and said, "Mr. Madden and Zhang Sheng, the 80% premium is indeed a bit expensive. Luo Sheng really wants to acquire China Gas Company, but he does not have so much funds, and the Bank of East Asia cannot provide a loan." Such a large amount of money."
John Madden and Zhang Yuliang looked at each other, and John Madden said, "Okay, for Li Sheng's sake, let's give it a 70% premium."
Seeing this, Luo Qihong could only come up with the second plan, "I know that Wheelock Company has recently expanded rapidly in the shipping industry and needs a lot of funds. It is not as good as China Gas Company's 31% equity premium of 45%. I will help Wheelock How about the company acquiring some properties at a premium?”
(End of Chapter)