He had decided to reconstitute the Black Dragon, and observing how Kira conducted herself in executing her misdeeds in a cold and calculated fashion, he was reminded of the Red Dragon, the organization from which the Black Dragon split.
He had decided to reconstitute the Black Dragon. How Kira conducted herself in executing her misdeeds in a cold and calculated fashion. This was what he was observing. He was reminded of the Red Dragon. The Red Dragon was the organization from which the Black Dragon split.