Reborn: Billionaire in College

After reading the report in his hand with a surprised expression, Chen Pingjiang was unable to come back to his senses for a long time. He looked at Bu Housheng opposite him with a look of suspicion.

“Is the report accurate?”

Bu Housheng patted his chest and assured: "It is 100% accurate. I had people infiltrate the user group and bribed scalpers, and finally connected this line."

"If that's the case, then he's still as brave as ever." Chen Pingjiang nodded.

"Haha, Mr. Chen, after years of financial fraud, isn't this just a little KS in comparison?"

Although we have long known that Boss Jia's acquisition of Yidao Car and the merger of Uber China were ultimately just for the sake of LeTV's stock price and sales, it is really jaw-dropping that he did it so blatantly.

It has been a month and a half since Yidao and Uber merged.

The two companies integrated very quickly and became one in just one month.

After that, a vigorous money-burning campaign began.

The burning method was also unheard of, which shocked the industry so much that it almost caused Chen Pingjiang's brain to crash.

At the press conference half a month ago, accompanied by Boss Jia’s choking and exciting breakthroughs, Yidao also embarked on a “money-burning” journey: one of the offers was “recharge 1400 yuan to get a LeTV 1099S phone worth 1 yuan”, and recharge up to 2200 yuan to get a LeTV TV.

It should be noted that users do not get the product on site, but only a mobile phone redemption code.

This is not just burning money, it's burning your life.

And just as Chen Pingjiang expected, everything was done for LeTV's benefit, to increase sales at all costs and thus boost the stock price.

"I'm crazy. I'm just running wildly on a crazy road. I'm doomed to never turn back."

Chen Pingjiang muttered to himself.

What will happen once this hole is poked through?
Banks demand repayment, regulators intervene, suppliers block the door to demand repayment...

The report clearly states:

After getting the redemption code for the LeTV 1S phone or LeTV TV, the recharge customers would not use it for themselves, but sell the code to scalpers at a discount. This even "cultivated" a group of scalpers who specialize in LeTV products in WeChat groups.

Obviously, the scalpers will not redeem the redemption codes they have bought for their own use. If so, they have no "professional ethics"! In fact, the scalpers will only redeem the redemption codes they have received from the next buyer. The key is who is this "next buyer"?

If it is true as claimed in the WeChat group, the so-called LeTV phones and LeTV TVs that were given away have returned to Yidao after a round of rotation.

When Yidao sends the redemption code to the recharge user, Yidao incurs fees and LeTV generates income; when Yidao buys the redemption code from the scalper, Yidao incurs fees and LeTV has nothing to do with it; finally, Yidao clears the purchased redemption code. This can be regarded as a "closed loop" built between "LeTV-Yidao-scalpers" and an alternative "ecosystem" created.

Yidao burned money, which eventually benefited LeTV and boosted the sales of LeTV phones and TVs.

What’s even more amazing is that the goods in the warehouse have not been shipped out!

From the whole process, it can be seen that LeTV does not really sell TVs and mobile phones to users. It simply turns the cost of Yidao car rental into LeTV's revenue through such a "financial number game". However, if LeTV and Yidao are regarded as a whole, this will not generate any profit.

But is profit important to LeTV?
On the road of rapid development, Boss Jia only focuses on sales, market share and number of fans.

During this process, no real products were transferred. Simply through the conversion of an electronic code, the originally unsaleable LeTV mobile phones and TVs all found "users". Whether it was LeTV mobile phones or LeTV TVs, the products did not even have to leave the warehouse, and they created huge "sales volume" and huge "sales revenue" for LeTV, creating the passion of LeTV and the cheers of Le fans.

"CFRA outlined seven major scams and 30 methods used by listed companies, including selling products to affiliated units and giving customers some kind of kickbacks as compensation, plus recording income that lacks actual economic significance. This is undoubtedly blatant financial fraud."

"Since the last short-selling report was issued, although it failed to fundamentally block the growth momentum of LeEco's stock price, it has also attracted the attention of relevant departments. We noticed that LeEco raised another 42 billion yuan in external financing some time ago. The way they spend the money, their capital chain will soon be unable to hold up," Bu Housheng analyzed.

Chen Pingjiang nodded.

At this point, there is no way to prevent LeTV from collapsing.

Although he thought about putting on some eye drops, his identity was sensitive after all.

The current Boss Jia and the future Boss Xu are so similar in some ways.

Tell a lie and cover it up with another lie.

Although the company is already heavily in debt and has to borrow credit to repay old loans, it still has to give the illusion to the outside world that the business is operating well.

Until the bubbles are blown bigger and bigger...

In the past few months, Boss Jia has been cashing out frantically when LeTV's market value was at its highest.

The money will be loaned to listed companies under the pretext of cashing out, but in the end it is just talk.

At this moment, he was very clear that LeTV was in a mess. Once the lies were exposed, this big ship would eventually sink.

In a luxurious villa in Beijing, a party attended by many celebrities from the entertainment industry had just dispersed, leaving the living room in a mess.

Gan Wei was wearing an expensive evening gown, revealing her jade-white arms and shoulders. She turned back with a flushed face and said, "Everyone has left. I had a really good time tonight. How was it? My sisters in the entertainment industry are all reliable. They said they would introduce some people to you, and they all came today."

The somewhat tired Boss Jia forced a gentle smile, and suddenly thought of something, and said, "You go to Hong Kong in the next two days. I will transfer some money there to invest in the United States. Later, you will help me find two more villas in the United States."

Gan Wei didn't doubt it and her face was full of joy.

"Haven't you already bought one? Why do you need to buy another one?"

"House prices are rising all over the world now, so even if you buy a house and rent it out, you won't lose money. You can treat it as a real estate investment."

"Well, okay, I reek of alcohol, so I'm going to take a shower first. You drink some tea and take a nap."

After watching his wife leave, Boss Jia's brows gradually furrowed.

He knew very well that he was like a gambler who was deeply trapped in online loans.

He is always on the road of borrowing money, borrowing new loans to repay old loans. In order to avoid the difficulty of credit investigation and to make the story more authentic, he must ensure his own credibility.

What is the best reputation for a businessman?

Naturally, it is a well-run and imaginative public company.

How do listed companies make money?
Either the profit from selling products and services or the stock price.

You have to take care of both ends.

But it is really difficult to make profits by providing products and services, and the amount is too small. It will be gone if several shareholders share it. Moreover, in most cases the money cannot be taken out and must be kept in the company account for the subsequent development of the company.

In this case, the fastest and safest way to make money is to raise the company's stock price and cash out.

Billions can be cashed out at once!

It would take at least five or eight years for a properly run company to make so much money.

But the growth of stock prices needs to be supported by performance!

Investors and shareholders need to believe the stories they make up.

What to do if performance data is not good?
They have no choice but to make up stories and fabricate things to maintain false prosperity.

Once the emperor's new clothes are pointed out by the little boy, all the disguises will be exposed in an instant. At that time, he will inevitably have to bear overwhelming pressure and responsibility.

As smart as Lao Jia is, he has already made arrangements for his escape.

The retreat route is only used as a last resort, and now he still has a chance.

He knew very well that LeTV alone could not save him.

LeTV phones cannot be saved either, because in the mobile phone industry, there are Apple and Samsung abroad, and Orange, Xiaomi and Huawei in China, and LeTV cannot be ranked.

So, he placed all his bets on making cars.

Only building cars can save him.

As long as the car is built and sold well, the company's performance will improve. The stock price will be supported, the profit will be settled, and there will be no talk of a crash. (End of this chapter)