The final negotiated price for the transfer of Ogilvy Pharmaceuticals was HK$50 million, and Pumpkin Vine Pharmaceutical Company was responsible for the entire HK$20 million debt.
The three brothers of the Wei family own a total of 46 properties including buildings and shops. According to the current market price, they need to pay a down payment of 20 million yuan, and an additional monthly mortgage payment of 1.3 million yuan.
From an economic perspective, Chen Xia lost money on this business. After all, the mortgage was calculated based on the high housing prices a few years ago, and now housing prices have fallen sharply.
However, Chen Xia paid at least HK$20 million less when acquiring Ogilvy Pharmaceuticals, and in return took over the Wei family's debts. This money was actually worth half of their debts.
The key point is that Chen Xia knew that Hong Kong's housing prices would continue to rise wildly until the Asian financial crisis in 1998. This meant that the property market would recover soon. At that time, the Wei brothers were abroad and they didn't know how to vomit blood.
Chen Xia has now taken over the wealth accumulated by two generations of the Wei family in Hong Kong over decades with 70 million in cash + 20 million in debt + mortgage. How could this business lose money?
Although the Wei family is not a wealthy family, it is also one of the richest families in Hong Kong. Now all of their wealth belongs to the Chen family.
In other words, the Chen family in Hong Kong went from being a well-off family, or a small-capitalist family, to having a garment factory and an 8-story building.
In one fell swoop, he entered the middle bourgeoisie.
Now he owns a garment factory, a jewelry store, a pharmaceutical company, a pharmaceutical factory, as well as 46 properties and some popular shops acquired in the past few months.
With such assets, the second and third rate rich people are definitely ranked below the top rich people, first rate rich people and so on. Don’t forget that a piece of “Jadeite Rough Stone King” and “Chicken Blood King” in the south of Yunnan alone are worth more than 300 million Hong Kong dollars in total.
After agreeing on the price, Chen Shuqin calculated the cash reserves of Caiyunzhinan and Nanguateng.
Pumpkin Vine currently has 28 million in funds, and Caiyunzhinan currently has more than 80 million in funds in its account. Together, they are more than enough to pay for the acquisition without even having to borrow from a bank.
In addition, the monthly mortgage of 1.3 million is nothing in Chen Xia's eyes. This is just the turnover of Caiyunzhinan for one or two days. Maybe it is half a month's profit in other stores, but in Caiyunzhinan, turnover = profit.
The jade and bloodstone business, just as Chen Xia had planned, became the cash cow of his career.
Xiangjiang's efficiency is very high. After all the financial and legal procedures were completed, Ogilvy Pharmaceuticals was completely owned by the "Four Seasons Group" under Chen Xia's name.
Today is the official day for taking over the pharmaceutical factory. The great grandfather, the nominal chairman of the Pumpkin Vine Pharmaceutical Company, came in person. He just wanted to see how capable his eldest grandson was that he could even buy the pharmaceutical factory.
In the eyes of the older generation, speculating in real estate or stocks are not doing one's job properly, and doing business is the real career. Therefore, he strongly supports Chen Xia's acquisition of the pharmaceutical factory and has been shouting for several days that if there is not enough money, he can sell the house to make up for it.
Chen Xia was moved. This guy was really like a real grandfather. He had absolute and unreserved trust in her.
On the way to Tsuen Wan, Chan Tak-fat asked:
"Xiao Xia, what are your plans after acquiring the pharmaceutical factory? When you encouraged your uncle to invest in the mainland, are you also planning to move Ogilvy Pharmaceuticals to the mainland?"
Chen Xia shook his head: "Grandpa, on the contrary, I don't plan to put all my eggs in one basket. I will definitely invest in the mainland, but the pharmaceutical companies in Hong Kong will not be closed.
I plan to place the omeprazole production line in Yuezhou and the antibiotic production line in Xiangjiang. If nothing unexpected happens, Pumpkin Vine Pharmaceuticals will be headquartered in Xiangjiang. After all, it's a free port, making imports and exports more convenient in the future."
Chen Defa slapped Chen Xia's shoulder hard. "Okay, I think the same as you. You are indeed a descendant of our Chen family. Even your ideas are exactly the same. You did a good job. Grandfather supports you."
Chen Shuqin was unhappy: "Dad, Xiao Xia is just talking, but your little daughter is doing all the actual work. Why don't you praise me?"
"Okay, okay, my Ah Qin has worked hard, and Daddy is very happy. The Chen family will surely prosper with you two."
"Grandpa, your goal is not right. What do we mean by prosperity? Our goal is to become one of the top ten richest people in Hong Kong. Then you will be the grandfather of our Chen family. Even the Governor of Hong Kong will award you a Justice of the Peace."
"Hahaha, then Grandpa, work hard and live a few more years, and you young people, work hard to achieve great things."
Everyone was in a very good mood, and the car quickly drove along Kwai Chung Road to Ogilvy Pharmaceuticals. Wei Yunhai was also straightforward. Since he had decided to sell the pharmaceutical factory, he did not put up any obstacles and instead cooperated very well with the Chen family in taking it over.
When Chen Defa and his team entered the meeting room, all the management were already waiting there.
After the two sides exchanged greetings, Wei Yunhai personally introduced the management team.
To him, these professional managers are old employees with whom he has worked for many years. Even though he has already left, he always fights to prevent them from being fired.
The economy is in recession now, and being fired means the whole family loses their livelihood. This is not the mainland, where the government controls everything and you can still receive a 20 yuan subsidy even if you don't work.
In Hong Kong, if you lose your job and cannot pay your mortgage, the bank will actually kick you out of your home and your property will be seized. No one will show you mercy.
This kind of thing is happening all over Hong Kong recently.
The business of high-priced jadeite in the south of Yunnan is so booming that the rich are still continuing to live a luxurious life, while the poor and the middle class are struggling. The widening gap between the rich and the poor also lays hidden dangers for the outbreak of social conflicts in the future.
"Chairman Chen, this is Ye Shirong, the Vice President in charge of production. He graduated with a degree in pharmacy from the University of Manchester and is one of my most valuable assistants. He has been working in our company for over ten years and has always been diligent and hardworking."
Ye Shirong bowed slightly to Chen Defa, and said modestly, "Hello, Chairman Chen."
Chen Xia stood behind and observed Ye Shirong carefully.
This is a middle-aged man in his 40s. He wears glasses and looks like an intellectual. When he was talking to the old man, his eyes were always clear, without any evasion or suspicion. He did not seem like a particularly scheming person.
Chen Defa also smiled and shook hands with him: "Hello, Vice President Ye."
Wei Yunhai then introduced another circle: Ye Xin, Director of Human Resources Department, Yang Jiameng, Director of Finance Department, Wang Jiahao, Director of Materials Department, Zhu Wenqi, Director of Production Department, Qian Yutang, Director of Technology Department, and Liu Jiachang, Director of Quality Inspection Department.
Facing the new boss, everyone was polite and greeted him as subordinates.
"Hello, Chairman."
"Thank you for your hard work, Chairman."
Chen Defa was not born into a poor family. He was a well-known figure in Shanghai back then. Faced with such a situation, he could deal with it naturally and act like a boss.
This also made everyone feel relieved. They were worried that if a country bumpkin who didn't know how to manage came, the factory would be even more ruined.
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