1988: Back to the human world for a few years

Chapter 524: Bandit Report

People in later generations often look at this era with historical stereotypes, and even look down on it, thinking that it was an era when they knew nothing.

But in fact, if we do not limit the realization to the mainland and do not consider the changes brought about by scientific and technological progress, the entire world has actually been stagnant for a long time in terms of the underlying operating logic;

Putting aside other things, if you have watched a series of classic TV series such as "Big Times" and "Creation of the Century", it is not difficult to see from the plot and details that the methods and concepts that the elites in the business and financial fields of later generations are complacent and even cherish, have actually been played with as early as the 70s to 90s.

The reason why we always feel that we cannot clearly understand this situation is that it is even difficult to understand the plots of jumping off buildings in TV dramas...

It’s nothing, the people are protected so well.

Although this protection is often not understood, many people are not aware of it at all.

………………

"Oh?"

"Your company is planning to use the two listed companies in which our Chen family holds shares to manipulate earnings?"

Chen Bingyi was somewhat surprised by Zhuo Mali's frankness, and the teacup in his hand suddenly stopped in mid-air.

Looking at Chen Jiahong Miaozi, who was about the same age as Yang Mo, Zhuo Mali smiled seriously: "Yes, profit manipulation."

"Strictly speaking, Sankyo Co., Ltd., Daiichi Pharmaceutical Co., Ltd. and other Japanese pharmaceutical companies have cooperated with our Dahua Company to build several artificial mulberry fungus planting bases covering hundreds of thousands of acres in various parts of Shandong and Qilu. To some extent, this is also a form of profit manipulation;"

"However, they are more likely to use the method of [misleading classification to inflate profits] in this area; and our suggestion is that you can consider using the method of one-off events to inflate profits!"

Zhuo Mali smiled and pushed the dried fruit plate on the tea table towards Chen Bingyi and Lin Keran, indicating that the two distinguished guests of Dahua Company should taste the freshly fried thousand-year-old ginkgo nuts. "This is also a gift from our General Manager Yang to you... General Manager Yang has great respect and admiration for patriotic overseas Chinese like Mr. Chen and Mr. Lin. As the saying goes, if you give me a papaya, I will give you a jade pendant in return... It's not a reward, but a friendship forever!"

Chen Bingyi and Lin Keran looked at each other, a hint of confusion flashing in their eyes.

When a magician wants to make a rabbit appear out of thin air, he will wave his wand in a serious manner to attract the audience's attention.

When public companies need to report profits, company management will also use some "secret sauce" to create something out of thin air to achieve this goal.

The "one-time profit" is like the rabbit hidden in the magic hat. It will fall from the sky, allowing the magician to complete a wonderful performance and win warm applause from the audience. Listed companies will also use this profit manipulation method, which has long been a tacit understanding in the industry, to disclose a beautiful financial statement to investors, and then push the company's stock price to a higher level.

Since this charming and beautiful minister could open her mouth and name the two most common and effective means of profit manipulation, "misleading classification to inflate profits" and "one-off events to inflate profits", she should know that these two means are nothing more than a trick that listed companies have to use to switch from one pocket to the other when they encounter operational difficulties under the pressure of capital rules;

If this request came from a representative of another company, it would be fine.

After all, although earnings manipulation allows investment companies to gain some obvious or hidden benefits in the secondary market through various means, it at least maintains the company's stock price and valuation on the surface. This kind of thing that focuses on face rather than foundation, if you are shameless enough, it would not feel out of place to say something like "win-win".

But the problem is that Dahua Company is a Chinese enterprise, and a centrally-owned Chinese enterprise at that, so the remarks just now seemed very strange!

You have to know that not only has the country been unwilling to fully open up its financial markets, but even the channels for capital circulation have been tightly locked. In this area, it can be said that it is currently an internal circulation system; unless it goes through Hong Kong as a transit point, or is specially approved by the organization, it is simply impossible for the funds from central enterprises to enter the "external circulation" system.

It is conceivable that this model of cutting off the mainland from the world capital market, with only Hong Kong as a connection point window in the middle, will last for a very long time (in fact, this will be the main pattern until later generations, but by then it may be necessary to add Qiongdao as a second connection point).

In other words, practically speaking, Dahua Company does not even have the initiative and needs to beg the Chen family to help them operate some things. The situation is similar to requiring them to cut meat for the other party to eat through a layer of iron fence without any coercion.

In such a situation, people can actually say things like "give me a papaya in return, give me a jade pendant" and even keep saying the three words "it's not revenge". It's too weird!

If it weren't for the fact that Dahua Company's previous actions had shown great goodwill and humanity, Chen Bingyi almost jumped up, pointed at the beautiful minister's nose and cursed, "How can a person be so shameless?"

Thinking of this, Chen Bingyi picked up his Qi-nourishing skills, took a sip of the tea in the cup, and then smiled at the peach in front of him: "Minister Zhuo...I would like to hear more about it."

Zhuo Mali looked at Chen Bingyi who had a calm expression, and then noticed Lin Keran's gradually sharpening expression. She couldn't help but sigh in her heart. After all, the family started out in the gambling industry. The feelings and sincerity of the old man of the Lin family were indeed well-known, but when it comes to family heritage and talent cultivation, they are still half a step behind the Chen family who started out in industry... Of course, maybe it's just a simple difference between men and women.

Without showing any abnormality on her face, Zhuo Mali smiled and poured another cup of tea for Song Wenxuan: "I'm afraid it would be more convincing if Director Song explained the cause and effect of this matter to you two."

Song Wenxuan, who had been in charge of dealing with the Chen and Lin families during this period, smiled slightly moved when he saw the old sister's statement that she was unwilling to cross the line, and then took over the conversation without hesitation.

"Mr. Chen, Ms. Lin, both of you are outstanding people. You have participated in a series of actions including short-term operations in gold futures with me during this period. I believe you can also clearly perceive that this world... is about to undergo drastic changes again."

Looking at Song Wenxuan's meaningful expression, Chen Bingyi and Lin Keran became thoughtful.

Although not all projects will be implemented directly, the two have indeed benefited a lot from spending time with Director Song, who graduated from Reading Business School. They have also learned a lot from his explanation of the principles of some futures and exchange rate changes, and have appreciated many things that they didn't care much about before.

Seeing this, Song Wenxuan smiled softly: "In short, the current trend has become increasingly obvious. Whether it is due to the shift of strategic focus or out of simple considerations of interests, Europe, the United States, and the island countries will gradually transfer the low-end manufacturing centers of the industry from Southeast Asia to China, South Korea, and South Asia... After all, in Southeast Asia today, although the advantage of raw material costs is still there, labor costs and policy costs have gradually risen to a level that European and American companies feel tasteless;"

"In fact, according to normal rules, although this process of low-end and mid-end industrial transfer, which has been repeated for hundreds of years around the world, is inevitable, even if there are signs, this process will still take about 20 to 30 years to complete. You have plenty of time to slowly consider and choose."

"Unfortunately……"

Song Wenxuan sighed softly, his tone full of regret and emotion: "It's a pity that with the crushing end of Desert Storm and the collapse of the island country's stock market, especially the island country's real estate market, it may hold on for a while, but it will eventually collapse irreversibly; this industrial transfer process will inevitably be greatly accelerated... Maybe five years, maybe ten years, but it is definitely impossible to continue for 20 to 30 years like Europe-North America, North America-South America/Northeast Asia, Northeast Asia/South America-Southeast Asia!"

Lin Ke Ran was shocked and blurted out: "How is it possible!?"

The Lin family, which started out in the gaming industry, now has two opinions about its future development;

One voice is for diversification, gradually shifting the focus to the tourism development industry, which is already closely related to the gaming industry;
Another voice is to completely distance oneself from the past and, like the top Chinese families in Southeast Asia, get involved in industrial sectors mainly in farms and manufacturing.

She was one of the latter, otherwise she would not have been assigned by her family to follow Chen Bingyi to Texas, far away in North China, for a field investigation.

Since she is an industrialist, even though she lacks experience, she still knows what it means once a large number of low- and medium-end manufacturing industries are transferred to China.

Let’s not talk about other things for now, but at least, the idea of ​​transforming into an industrial enterprise in Southeast Asia is completely shattered... Without the low-end manufacturing industry with a low threshold and less interest involvement as a springboard, what kind of industry can you get involved in? Do you really think that there is a paradise where you can fly freely?
Song Wenxuan sighed softly after hearing this: "Nothing is impossible. You two can think carefully about the recent futures price fluctuations of a series of traditional strong commodities in Southeast Asia, such as copper, aluminum, wood, and palm oil, the sources of orders in the spot market, and the series of commercial contracts signed between Europe and the United States, mainly America, and South Korea during this period, and you will know."

"It's obvious that America wants to quickly and comprehensively reap the island nation. If it wants to comprehensively reap the island nation, it must first force the island nation to relocate its low- and medium-end manufacturing industries. In this way, without the bottom two layers of the pyramid, the island nation's economy will become a tree without roots, and it will be at the mercy of Europe and the United States. "

"And the current situation is very clear. South Korea is the region chosen by America to undertake mid-range and even mid-to-high-end manufacturing industries. If nothing unexpected happens, China will be the ideal place for them to undertake low-end manufacturing industries!"

As soon as these words were spoken, Lin Keran's face suddenly turned pale.

Even the most brainless person knows that with China's size and scale, as well as its extremely low current labor costs, once China becomes the host of low-end manufacturing in Europe, America and even the world, what will that mean for Southeast Asia... This is almost equivalent to declaring that Southeast Asia can hardly get any decent external orders.

If it was last year, she would be anxious but not desperate. After all, there are gains and losses in this world. You can't just take advantage of others. In addition to taking over the manufacturing industry, you also need to pay a certain price. China has always been very cautious in this regard. It is impossible for it to take over such industrial transfer on a large scale in the short term. But the problem is...

When she thought of the Desert Storm operation that had just ended and had a strong impact on everyone, she was almost certain that Song Wenxuan's words were not alarmist... Facing America, who had just unscrupulously exposed all her fangs, no one in the world was willing to confront such a monster at this juncture.

and so……

Thinking of the chain reaction that such a drastic change would cause, the tea room suddenly became quiet. Everyone looked worried, even Zhuo Mali's face had lost its previous charm.

Seeing this, Song Wenxuan forced a smile on his face: "Although Southeast Asia is no longer a suitable place for industrial project investment, you two still have China as an option... At least, the door of the motherland is always completely open to all patriotic overseas Chinese!"

"As for Texas, I dare not say anything else, but the light and heavy industrial bases here are very complete. Although due to national policies, some heavy industrial fields do not allow private capital to enter, some less sensitive industries and all light industries welcome your families to invest at any time... and it is the purest kind of investment!"

After slightly emphasizing the word "pure", Song Wenxuan's expression remained unchanged: "Of course, I have said that the door of the motherland is always open to all patriotic overseas Chinese. Therefore, although the light and heavy industrial base in Dezhou is relatively complete, it is not a particularly attractive place. After all, the northern industry is complete, and the foundation will not be bad no matter where you two invest."

"But the problem is, I'm sure you two have heard about the domestic situation. Although China currently has a very complete range of industries, objectively speaking, most areas have relatively backward technology and lack of competitiveness in the international market;"

"From a business perspective, if the products produced cannot be sold, no matter how favorable the investment policy is, it will be meaningless... Moreover, the families you two belong to are currently in a relatively urgent need for transformation, so there is no question of returning a favor."

At this point, Song Wenxuan picked up the teacup and took a sip, with a mysterious expression on his face: "But the question is, what if Texas can directly provide your family with an opportunity to skip the transition period of low-end manufacturing and directly get involved in mid- to high-end manufacturing?"

! ! ! ? ? ?
Chen Bingyi and Lin Keran widened their eyes in disbelief and sat up straight.

If you are not in this field, or if you are not surrounded by wolves, you will not be able to understand the value of this sentence.

Song Wenxuan smiled, but his voice was full of indescribable sincerity: "Just recently at the Tokyo New Year Festival, the heads of several island companies proposed to Minister Mu that the two sides could deepen cooperation, and directly put forward an order for 1.4 vending machines... The other party said that as long as the finished products delivered domestically can meet the standard requirements, there will be no less than 60 batches in the next five years, and the total order quantity will be no less than units. Contracts are waiting for us to sign!"

60 vending machines?
The two were startled.

Although vending machines have been around for quite some time, after experiencing segmentation of usage scenarios and more than ten technological changes, they can still be considered relatively technologically advanced, and the price is not cheap. An order of 60 units is not small... At the very least, if you can deliver these 60 vending machines as required, you will have a foothold in this industry, even in the field of electronic identification. Although it is not a big one, it is enough for you to stand firmly there.

only……

This project may not be particularly large in scale, but it is of extraordinary significance. Is it really reliable?

As if seeing the two people's confusion, Song Wenxuan explained in a very understated tone: "America wants to fully reap the island country. The island country, which has just experienced a tragic exchange rate sniping war, naturally knows it well. Although the situation is stronger than people, facing America's father's violence, they are constrained by various objective conditions and have little direct resistance;"

"But this is, after all, the country that wrote 'An Island Nation Can Say No' and the world's second largest economy. Although it does not have the qualifications to directly resist the sickle from America, resistance from the side has been going on all the time."

"Ever since the yen began to be attacked, and their officials were concerned about the Tokyo Special Investigation Team and never made a strong rescue move, the island countries have visibly accelerated their cooperation and investment in China;"

"One of the most obvious changes is that the speed of industrial transfer from the island countries to China has greatly increased, including some industries with relatively high technological content. In addition, the conditions attached to investment are much less than when the reform and opening up just started. The degree of preferential treatment is not small!"

"The other party's intentions are very clear. Since America intends to vigorously support South Korea and replace it in mid-range and mid-to-high-end manufacturing industries, and even intends to strike back when necessary, then they might as well take the initiative and transfer these industries to China in advance in the form of GNP;"

"In this way, America may be able to replace them in some areas, but it is not realistic to collapse their industries... In the words of Huanzhu Louzhu, what the island companies are doing now is to create an external incarnation for themselves, and China, especially Qi and Lu, which are only separated from them by a sea and have a relatively complete light and heavy industrial base, is the best choice in their minds."

After pointing out the key point in the simplest words, Song Wenxuan smiled and said, "In short, this vending machine project that adopts the patent licensing + export sales cooperation model is just the beginning. I can't give you an answer now, but the other party's sincerity can be seen;"

"In short, at least based on the current situation, this project should be a rare opportunity for your families... Although the Dezhou region is also eager to promote the upgrading of some industries through this order, Mr. Yang did not hesitate to leave the leading rights of the project to Mr. Chen and Mr. Lin;"

"I think, considering the current situation in the country and even in Texas, and the current situation of Chengchan Fund Company and Dahua Company, the three words [bandit newspaper] should still be worthy of it, right?"

Chen Bingyi nodded without hesitation: "I totally deserve these three words... Mr. Yang, I would like to thank you on behalf of my uncle!"

This was said sincerely. Although China has never been reluctant to show its sincerity to patriotic overseas Chinese over the years, this sincerity is more reflected in economic returns and policy inclinations. There are very few people like Yang Mo who take the initiative to consider their real situation and give up the transformation opportunities they value most.

Although he is young, he is the key training target of the family after all. If he still doesn't know why Zhuo Mali had specifically asked about the two listed companies in which their Chen family has a stake, and why she mentioned the matter of "one-time event to inflate profits", then his life would have been in vain.

Nanyang is a place of underworld, and as someone who was born in such an environment, he naturally knew how to return a favor. He hesitated for a moment, then raised his head and said, "Thank you, Mr. Yang, for your high regard. Our Chen family is not the kind of family that would repay kindness with enmity."

"How about this, Director Song, let me call home and report to you later."

"If the clan has no objection, I plan to have my family set up a joint venture factory in Texas in the name of the two listed companies. After the factory gets the order, it will disclose it in the financial statements, and then use a one-time event to inflate profits and significantly push up the stock price;"

"When the stock price rises to a high level, our Chen family will sell most of the shares, and then set up a new overseas Chinese investment company in Hong Kong. Through Hong Kong, we will invest funds in this new joint venture factory."

At this point, Chen Bingyi added: "Of course, it is impossible to invest all the money cashed out from the stock market into the new factory. Our Chen family only requires a 34% controlling stake. Once this proportion is reached, we will stop injecting capital. We will retain the remaining funds and lock them in the special account of Xiangjiang Overseas Chinese Investment Company;"

"As for how to use this money in the future... Director Song, our Chen family used to run industrial factories, and we really don't know anything about investment. When the time comes, I'm afraid I'll have to trouble Mr. Yang for some advice."

Although he said it sincerely, even a fool could tell what Chen Bingyi meant.

Logically speaking, one should always say what should be said based on what has been done. However, Chen Bingyi laid out all the main frameworks and even directly pointed out his requirements and rewards to the other party before the two sides even started to talk about it. This was really an impulsive and almost brainless thing to do.

But in fact, this was one of the suggestions Mr. Chen gave when he set off for the mainland.

The country has shown great sincerity to these patriotic overseas Chinese from the beginning to the end, so they should show their sincerity in return;

Yang Mo gives people the impression of being a straightforward person with an indescribable gangster spirit in his bones. However, he showed such great kindness to these patriotic overseas Chinese right from the start, so they should show their kindness in return.

To put it simply, I will tell you my bottom line, and as for the rest, I will do what you say and do what I intend to do, and I will not hide a single cent from you.

Looking at Chen Bingyi who had already expressed his position, Lin Keran frowned, but ultimately did not say anything to spoil the mood.

In fact, the Lin and Chen families were not very familiar with each other at first, but they gradually became closer because of the original Moyazhai project and a series of cooperation actions in the island country last year.

Although the two families were not close friends, since they came to Texas together, in the eyes of outsiders, they were a group, and she naturally could not let outsiders laugh at them.

Thinking of this, she suppressed her dissatisfaction with Chen Bingyi's unauthorized statement and nodded gently: "Director Song, please borrow your company's phone later. I also need to report to my family... As for what the elders have decided, I will pass it on to you when the time comes."

Seeing this fashionably dressed girl acting like a megaphone, Song Wenxuan's eyes dropped slightly, but the smile on his face remained unchanged: "Okay!"

(End of this chapter)