Reborn, back to a small county town to become a wealthy family

Chapter 660 Corporate Strategic Development Direction
Luo Yang's words reminded Liang Yuxin.

This set of stuff is not as common as rotten cabbage on the street, but it is definitely not a state secret file.

How many registered companies are there in the tax haven Cayman Islands?
As long as people are willing to spend money, there are plenty of people willing to reorganize the group structure for Luo Yang.

Thinking of this, Miss Liang was no longer proud.

"Okay, I know you have money, but I'm just surprised"

Liang Yuxin curled her lips and said, "On the one hand, you started from scratch and created such a big business in a short period of time, just like a business genius. On the other hand, you are like a newbie who can't even figure out how to set up a reasonable organizational structure for a large group company. I really don't know how you achieved such great success."

"You can also ask Lao Liang about this."

Luo Yang sneered and said, "How many of those bosses who started out at the age of 90 understand the system you just mentioned?"

Among the bosses who emerged during the reform and opening up period, many had only junior high school education. It is not an exaggeration to say that they were grassroots people. This group of people with little education relied on their superhuman courage, excellent emotional intelligence and the ability to keep pace with the trend of the times to become one of the first people to become rich.

Where did the corporate management system come from at that time?

"Besides, isn't it normal for me, a civil engineering major, not to understand management?"

Luo Yang sneered and said, "Professional matters should be left to professionals. Where in the world is there an omniscient and omnipotent boss?"

Liang Yuxin didn't know how to respond for a moment.

"You have nothing to do anyway, so give me some lessons."

Luo Yang knew Miss Liang's temperament too well. He couldn't just suppress her. If necessary, he should smooth her over. The effect would be particularly good.

Sure enough, after hearing the soft words, Liang Yuxin felt much better.

She wrinkled her nose and said, "From the official documents issued by the group, we can see the company's current organizational structure. To be honest, if it was a small or medium-sized enterprise with a revenue of a few hundred million, it would be fine, but Lingshi Palace Group's annual revenue should be over 10 billion now, and two or three of its subsidiaries are eligible for listing, so it is no longer appropriate to continue using the current structure."

"You mean the common model of large group companies today?"

Luo Yang has some fragments in his mind, but they are not systematic, because this information all comes from the self-media information fragments that developed in later generations.

"I won't use more complicated examples for analysis."

Liang Yuxin took a sip of tea before continuing, "Take Lingshi Palace Group for example. In the future, will you distribute equity dividends to senior executives? If you do, these shares will be passed down to the subsidiaries below. Some of the holding subsidiaries under the group are 100% controlled by you, while others are in cooperation with others. If you don't sort it out, it will cause troublesome disputes in the future. Of course, this is just one of the disadvantages."

Luo Yang is not professional in this area, but he still has basic thinking ability and logical thinking.

Of course I can understand such a straightforward statement.

When he nodded, Liang Yuxin said, "There is also the issue of tax payment. I don't need to say more about that, right?"

“Registered overseas?”

Luo Yang's knowledge system is fragmented, but this does not prevent him from hitting the nail on the head.

“Yes, registered overseas.”

Liang Yuxin nodded and said, "You should register a wholly-owned investment company in a place like the Cayman Islands, and let this investment company control the Lingshi Palace Group, or set up another group company. On this basis, separate the original industries and divide them into two group companies according to different categories."

Luo Yang ignored the words overseas registration and Cayman Islands and focused on the industrial distinction.

"By different categories?"

He lowered his head and thought for a moment, then looked at Liang Yuxin and asked, "Is it based on physical and virtual entities, or is it based on the category of the enterprise?"

"That depends on what you think, Mr. Luo."

Liang Yuxin shrugged slightly and said, "For example, which companies do you plan to list, which companies have the conditions for listing but you don't plan to list, and the remaining companies that don't have the conditions for listing at all..."

If divided according to this, Luo Yang thinks it is relatively simple.

"There are also divisions based on industrial chains."

Liang Yuxin continued to give examples, "For example, Kunpeng Technology, you have built a full industrial chain for it, so you can set up a separate group company; for example, Luo Sheng Tang makes milk tea, Jiang Xiaobai makes white wine, and Huayang makes spicy strips. In fact, these can all be classified as food."

"I understand."

Luo Yang nodded and said, "Industry classification."

“There are more extreme ones.”

The most important thing is always put last. Liang Yuxin emphasized: "From the perspective of tax coordination, for now, the annual net profit of Luo Sheng Tang under your name is very high, but Kunpeng Technology may generate loss-making financial statements as it expands its market and increases its investment in research and development. Putting the profitable and loss-making companies in a group structure can adjust your tax payments in recent years."

These words are simple and easy to understand, but they are well-placed and have a great impact.

Let’s not talk about the Magic City, which has already been gathered under one group, but the situation in Yang City is different.

Zhengyang Group is currently very profitable. After the tax reduction and exemption preferential policies expire, the taxes it needs to pay will also be very high due to its excessively high annual net profits.

If a group company is established now and Guangfan Wind Energy, which has been in a loss-making state for at least two or three years, is put together, the overall tax amount will be reduced a lot at once.

After listening to these opinions, although Luo Yang did not interrupt, his expression told Liang Yuxin that he had listened.

"Then let's get back to what we were talking about earlier."

Luo Yang suddenly changed the subject and asked, "You suggested setting up an investment company in an overseas tax haven that I would hold 100% of. What's the logic behind this?"

"There are so many explanations here."

Liang Yuxin curled her lips and said, "The most direct one is your dividend income. If you still follow the current structure, you can only withdraw it from the holding subsidiary alone. For you, the personal income tax will be an extremely high proportion, but after the profits are returned to the overseas company, some tax rates will be much lower."

Well, even though the company has already paid profit tax, shareholder dividends are still subject to a tax rate as high as 20%, which is very painful to pay.

"In addition to the tax rate, there is also capital increase."

Liang Yuxin waved her finger and pointed to her office: "Take Pinduoduo as an example. The group holds 80% of the shares and I hold 20%. Now they want to increase capital. You personally take out money to invest in Pinduoduo. Whether you follow suit or not is not the case here, what about the group?"

If Luo Yang does not have 100% control over the group, this method of capital increase will personally cause Luo Yang to suffer a loss.

"And if we increase capital in this way, the accounts will become messy."

Liang Yuxin continued: "But you inject capital into the group through an overseas investment company, and then invest in Pinduoduo in the name of the group. In this way, not only will the accounts be clear, but the equity ratio can also be recalculated at the group level. Similarly, the reverse withdrawal of funds is also the same."

The more he listened, the more silent Luo Yang became.

"There are so many tricks here, more than what I mentioned above?"

Liang Yuxin continued without caring: "There are also corporate A and B shares, equal rights for equal shares, and small shares controlling the company's operating rights. These are applicable to the Internet company you created. They need to continue to raise funds from outside. In order to prevent the founder from being kicked out, a sophisticated structure needs to be designed. I am not an expert in this area, so you need to hire a more professional team to help you plan."

"Looks like I need to slow down a bit."

Luo Yang thought for a long time: "Unless I am satisfied with the current situation, the bigger the enterprise is, the more problems will arise in the future. So it is necessary to stop at this stage and find a professional team to design a rigorous architecture."

"At least you do."

Liang Yuxin nodded in agreement and said, "Some companies may have reached a scale of hundreds of billions, but because of their single industry, they don't need to go through so much trouble. For example, my real estate company, even if Lao Liang operates the company and lists it on the market in the future and reaches a scale of hundreds of billions, the existing structure can still be used."

"Yeah, I've started a lot of businesses."

Luo Yang had to admit that he had been involved in a lot of businesses in the past three years. "I am more curious, sometimes I even want to open your head and take a look."

Liang Yuxin smiled and said, "Drones, milk tea, liquor and film and television investment. Recently, he has also entered the financial and e-commerce fields, and even started to play with the concept industry of mobile Internet. Are you afraid of being poor? Do you do anything to make money?"

"It's not as complicated as you think."

Luo Yang smiled faintly and said, "In fact, you should know that I went to Jincheng Real Estate to work part-time because my family was in debt and I was forced to do so. So at the beginning, it was just like you thought, I did whatever made money."

"Including the Crab Card?"

Recalling the interesting things that happened three years ago, Liang Yuxin couldn't help but curl up the corners of her mouth.

"Yeah, that includes the Crab Card."

Luo Yang sighed, "You don't know, in addition to selling crab cards, I also traded stocks and opened an online store on Taobao to sell clothes. By the end of the year, I had paid off all my family debts."

"So you're not wholeheartedly working for my family part-time?"

Liang Yuxin joked, "If I had known, I would have squeezed you more. I can see that you were very capable at Jincheng Real Estate. Otherwise, how could you have so much energy to do other things?"

"Come on, don't you know how much benefit Lao Liang has gained from me?"

Luo Yang glanced at Liang Yuxin; "Otherwise he would give the general contract of the Pudong project to my father?"

"Yes. Jincheng Real Estate was really good back then!"

Liang Yuxin's eyes were filled with memories: "If there hadn't been that cooperation project."

She always thought that Luo Yang was dissatisfied with Lao Liang because of this incident, so she felt very sorry.

In fact, Luo Yang's departure was partly due to Jiang Fan's request.

"Stop talking about this."

If I continue to reminisce, it would be bad if it reminds Miss Liang of certain emotions.

Luo Yang changed the subject in time and said, "Later, the business of the online store I opened on Taobao grew bigger and bigger, so I opened a factory in Qiandeng. After developing step by step, the annual output value of this clothing factory has exceeded 10 billion yuan, and some products are even exported to Europe and the United States."

"what?"

Liang Yuxin was stunned for a moment, then lowered her head and thought for a moment.

"Isn't the clothing company you're talking about part of the Lingshi Palace Group?"

"Well, I have set up some industries in my hometown."

Luo Yang smiled and said, "It's mainly in the manufacturing industry, including the assembly of Kunpeng Technology and some fuselage material production plants, all of which were placed in my hometown."

Liang Yuxin looked at Luo Yang with complicated eyes.

I originally thought that it was a great miracle that he started from scratch and created the Lingshi Palace Group in three years.

Now it seems that this is not all.

As expected, he is the person I like. He is really excellent.
Although he stayed in Yangcheng and helped Luo Yang manage Pinxixi, he only came here once every two weeks. If he wanted to get close to him, the time was far from enough.

Do you want to give up your little self-esteem, bow your head to Lao Liang, and go back to the Magic City?
Luo Yang didn't know what Miss Liang was thinking at the moment.

He was considering Pinxixi's next development focus.

"Mr. Liang, in addition to listening to the company's recent development, I also want to discuss the company's future development direction with you."

"What direction?"

Liang Yuxin's thoughts were suddenly interrupted and she was a little unreacted for a moment.

Only after Luo Yang repeated it did he start thinking again.

"Didn't you explain this in the meeting room just now?"

She asked in confusion: "Expand the sales team, deepen the group buying business, consolidate the business in the Pearl River Delta, and seize the market in surrounding provinces in small steps."

"This is a tactical detail, not a development strategy direction."

Luo Yang curled his lips and said, "Once our company crosses a certain node, it will be noticed by our peers. At that time, the so-called new model will be exposed to everyone and studied repeatedly. In the final analysis, there is no threshold for this, and it is very easy for others to copy it."

Just like shared bicycles, there is no moat and it is easy to be imitated and copied.

Liang Yuxin understood after a little thought.

"Mr. Luo, I think we should apply for a payment license!"

The so-called payment license, whose full name is third-party payment license, refers to the third-party payment business license issued by the People's Bank of China, which is the basis for enterprises to legally carry out third-party payment business.

In order to regulate market order, the central bank issued payment licenses for the first time in 2011.

A total of 27 companies in the first batch obtained payment business licenses.

This includes Alipay.

"This is a moat."

Some memory fragments flashed through Luo Yang's mind, so he nodded and said, "And I have a feeling that this kind of third-party payment license will be very valuable in the future, so it would be a good thing to apply for it earlier."

This is indeed the case.

Ten years later, the cost of acquiring a third-party payment license in the market would be at least 10 billion yuan.

Applying now is equivalent to a high-return investment.

Moreover, this third-party payment license can not only be used on Pinxixi, but also related companies such as shared bicycles and Station C can benefit from it.

"Well, let's make this the top priority for the next two years."

Luo Yang instructed Liang Yuxin earnestly, "Be sure to apply for it. If you encounter any difficulties or need any support, please report to me in time."

"I have paid attention to this area. Before you acquired me, I also planned to apply for a third-party payment license."

Liang Yuxin sighed, "The e-commerce platform I built before was on the verge of bankruptcy, and I thought I would never have another chance. I didn't expect that after many twists and turns, it was finally acquired by you. Now I can realize this plan."

"Just consider it as the fulfillment of your plan."

Luo Yang smiled at Liang Yuxin, and then continued: "In addition to the third-party payment license, I also want to build another moat."

"besides?"

Liang Yuxin looked at Luo Yang intently.

"logistics!"

The sound of these two words was not loud, but they exploded in Liang Yuxin's ears.

(End of this chapter)