Rebirth 1983: Building My Business Empire
Chapter 476 - Chapter 476 Chapter 464 Real Estate Promotion

Chapter 476: Chapter 464: Real Estate Promotion Chapter 476: Chapter 464: Real Estate Promotion Wansheng Real Estate’s new development in Causeway Bay was set to launch in July. Property prices are rising, with housing prices different every month, all climbing. However, Nie Zhan did not raise the price for this project; it was still sold at the price it was three months ago.

By mid-August, when the project in Mong Kok launched, they lowered the price by 20 Hong Kong Dollars per square foot for bottom-floor and less desirable units. Not only that, but there were also raffles to give away gifts, and anyone who bought a flat could get a souvenir when they left.

This news spread quickly, and many people thought Nie Zhan had gone mad. Some speculated that Wansheng Real Estate might be having cash flow issues because, otherwise, why would they reduce prices in a booming property market? When reporters interviewed Nie Zhan, he said the company had a relatively high debt ratio and wanted to recoup some funds earlier to pay off part of the debt.

As Wansheng Real Estate had incurred a great deal of debt through aggressive land purchasing, its debt ratio had soared to 68%, far above the normal level. Such an explanation from him seemed plausible to the public.

Hu Zhifeng had long advised him against such a high debt ratio and felt that his advice had taken effect when he saw Nie Zhan raising funds to pay debt. Tao Yong simply asked for two sets of flats in Mong Kok for his girlfriend Shi Xinyu at an internal price from Nie Zhan.

After buying the flats, Shi Xinyu immediately called Lu Jiaxin, “Jiaxin, do you know what I won? I got a gold necklace.”

The prizes prepared by Wansheng Real Estate were varied, including electric fans, rice cookers, gold necklaces, and the grand prize was an air conditioner.

Lu Jiaxin said with a smile, “You’re that lucky?”

Shi Xinyu excitedly said, “Yes, Tao Yong also said I’m lucky. Jiaxin, I’ll treat you to afternoon tea tomorrow.”

In fact, the gold necklace gifted was very thin and could be bought for just a few hundred dollars, but it was considered a good omen. Tao Yong too felt his fiancee had been consistently lucky lately, and now that she had won a prize, he praised her. Shi Xinyu was happier about her boyfriend’s compliment than winning the prize itself, especially since she had often been turned down.

Lu Jiaxin responded with a smile.

Shi Xinyu, puzzled, asked, “Jiaxin, don’t you find it boring to stay at home every day?”

Lu Jiaxin replied with a laugh, “Not boring at all.”

Boring? My mornings are packed with classes, I do my homework after a nap, and some evenings I even have meetings. It’s also Shi Xinyu who arranged this afternoon tea; otherwise, I wouldn’t even have time for a game of basketball.

After Shi Xinyu hummed in acknowledgment, she continued, “Sister Meitong has to work tomorrow, so I won’t call her. I’ll treat her separately when she has time off!”

She still thought her current situation was the best. With a manager running the store, she could just go there when she felt like it or entertain some guests if the mood struck her. If she didn’t want to move, she could just nest at home or gather with a couple of friends. Unlike Yu Meitong, who had to work from Monday to Friday and sometimes attend lectures on weekends. Although she knew Yu Meitong was improving herself, it looked tiring!

“Just let her know about it.”

“I will.”

Not long after hanging up with Shi Xinyu, Lu Jiaxin received a call from Su Heyuan, inquiring about the property development. The real estate market was booming, and everyone else was raising prices, but Wansheng Real Estate was reducing prices and even introducing raffles to attract buyers. Nie Zhan mentioned raising funds to repay debt, but Su Heyuan was skeptical.

Considering he had a new project launching next month, Lu Jiaxin said, “It’s not clear on the phone, come over after work, and we’ll talk face to face.”

He found it unusual, but Su Heyuan didn’t want to wait until after work, “I’m coming over right now.”

“I have a class, no time now, come over at noon!”

Su Heyuan then remembered she had classes in the morning and would not have time for a detailed discussion, “Okay, then I’ll come over for lunch.”

Lu Jiaxin, knowing he liked sashimi, said with a smile, “It just so happens that Feng Qinglei sent over some tuna and Australian lobsters today, you’re in for a treat.”

Timing it right, Su Heyuan arrived at the Lu Family Mansion just as Lu Jiaxin finished her morning classes. Jiaxin wasn’t up for eating, so she took him straight to the study.

Su Heyuan couldn’t wait to ask, “Why is Nie Zhan reducing the selling price?”

After drinking half a glass of water, Lu Jiaxin leisurely responded, “Just like the news reported, to recoup capital and reduce the debt ratio.”

“And?”

Lu Jiaxin smiled lightly, “A 68% debt ratio is too high. Not only is the capital from the project sales being used to repay debt, but next month he plans to increase capital stocks again, and that money will also be used to repay debt.”

Wansheng Real Estate had previously raised funds through capital stocks in the last two years. And next month’s fundraising was facilitated by Lu Jiaxin. Of course, the funds raised were not meant for repaying debt; they were to be used for bottom-picking after the stock market crash, making a fortune to then hoard land.

Su Heyuan said doubtfully, “It’s enough if the real estate debt ratio is maintained at 60%, and the capital from the two projects should be about enough.”

Lu Jiaxin didn’t respond to his remark, instead, she asked, “How much have you invested in the stock market?”

Without hesitation, Su Heyuan replied, “I bought 46 million worth of stocks, and now I’ve made over 24 million. My grandfather said the stock market is a bit overheated and advised me to divest some of my stocks. I’ve spoken to the stockbroker and decided to sell half to retrieve my principal.”

No wonder Old Master Su had managed to get out of the stock market crash unscathed back then–his clarity was stronger than many others. In fact, with the overheated stock market, many people were uneasy, yet greed made them want to earn more.

Lu Jiaxin stated, “Ah Zhan also thinks the stock market is overheated now, so he wants to quickly recover funds to repay a portion of the debt. With such a high company debt ratio, the bank will press for repayments if there’s a significant fluctuation in the stock market.”

“Nie Zhan thinks the stock market is overheated too?”

Lu Jiaxin countered, “Don’t you think the stock market is overheated now?”

Su Heyuan was also unsure, which is why he had followed Old Master Su’s advice to divest half of his shares by the end of the month. Thinking that Lu Jiaxin always had good financial luck, he inquired, “Have you bought a lot of stocks too? Have you cleared them all out?”

Lu Jiaxin didn’t hide the truth from him, saying, “I’ll clear out my stocks next month and also close out all my futures positions when they expire next month. I’ve made a tidy sum from this wave and can’t be greedy. Otherwise, if I get caught, I’ll cry.”

Upon hearing this, Su Heyuan immediately said, “Let me know when you clear out, and I’ll sell all of mine too.”

“Sure.”

Su Heyuan inquired, “Jiaxin, do you think I should also organize a promotional event?”

As a second shareholder, Lu Jiaxin was quite familiar with the situation of Flourishing Real Estate. Flourishing Real Estate had a debt ratio of 46%, which was within the normal range in the industry. However, with an impending stock market crash, it would be better to sell the houses earlier to recoup the capital. Otherwise, when the crash arrived, many people wouldn’t be buying houses due to severe losses. If the houses couldn’t be sold, the company would have to pay high-interest rates to the banks, increasing costs.

Lu Jiaxin said with a smile, “Promotional gifts don’t actually cost too much money, but some people are used to being thrifty, and if the prices and locations are similar, they’ll definitely choose you first.”

After some consideration, Su Heyuan decided to follow Lu Jiaxin’s advice, getting ready to organize a sales promotion next month. After the capital was recouped, they could either repay debts or hoard land.

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