I was forced to start the second round because I was raised in poverty

Chapter 401 Su Cheng's Business Empire

Since Su Sheng was expelled to Antarctica, Long Ruoli has become much more restrained.

The incident involving Su Sheng had a significant impact on her, forcing her to temporarily withdraw her energy inward.

If she was the one with the most information asymmetry at a certain point in time, then she is probably the one with the least information asymmetry now.

Judging from the current situation.

Su Tianyan, Bai Zihua, and even Zhang Lekang all possessed more information than she did.

She didn't know much about Su Cheng's side; the kid only said that he wanted to start his own business.

At this time, it is the worst thing to do to go against the grain.

Long Ruoli's thinking about the issue is no longer based on an objective and neutral assessment from the perspective of "raising children in poverty".

Everything has two sides.

She will only choose the version of the story that is more favorable to herself based on her current situation.

Take Su Cheng's application to start a business as an example.

She could say she would consider it, or she could vehemently deny it.

Both sides have their points.

Because of her different stances and circumstances, she chose different ways of speaking.

Now that Su Sheng has gone down, I have the least amount of information and intelligence.

At this critical moment, Long Ruoli must not act rashly, otherwise she might perish due to a lack of crucial information.

She already wields considerable power within the group.

But no matter how powerful they are, being exiled or banished is just a matter of a word from Su Tianyan.

At this point, it's best to follow the thoughts and opinions of others; that's the most prudent approach.

Therefore, Long Ruoli naturally chose the same story as Bai Zihua and Zhang Lekang in this matter.

"Brother Tianyan, it's a good thing to let Xiaocheng go out and explore."

Long Ruoli had three considerations.

First, with Su Cheng no longer in the group, she has more room to maneuver and can more easily influence Su Cheng.

Secondly, if Su Cheng doesn't perform well, his succession process could very likely be reversed.

Finally, she has the least information gap, which is the safest and most reliable approach.

Long Ruoli continued to explain, finding a suitable entry point for herself: "Brother Tianyan, after Xiaocheng started his own business, he subjectively had a social identity. He no longer relied on the Dihao Group and was no longer protected by the group's big tree."

Although they hadn't offered Su Cheng any help before, they had objectively provided her with some protection.

Because wherever Su Cheng goes, he always carries the name of the Emperor Group.

The prestigious brand of Dihao Group, which is well-known globally, will certainly have a positive effect on Su Cheng.

Long Ruoli's consideration from this perspective makes some sense.

After listening, Su Tianyan fell into deep thought.

I am unwilling to let Su Cheng leave the group to start her own business.

However, Bai Zihua, Zhang Lekang, and Long Ruoli all believed that it would be better to let Su Cheng start her own business.
Bai Zihua goes without saying; he's always been a moderate.

Old Zhang most likely doesn't want to fight Su Cheng.

Xiaolong also thinks he can start a business?
These three people may have different starting points, but their thoughts and opinions are very consistent.

Su Tianyan's plan to raise Su Cheng in poverty did include arrangements for Su Cheng to start her own business. There will definitely be a step in the future where Su Cheng will be able to independently and autonomously manage a company.

However, it wasn't a separation from the Emperor Group; rather, the young man was transferred to a branch office as president.

Su Tianyan had to reconsider whether he should really let Su Cheng start her own business.

In fact, starting from the island of Macau, Su Cheng gradually deviated from his plans, and the steps and processes accelerated considerably.

Because of his illness, he didn't have much time left.

Perhaps speeding up the process is a good thing?

Partial separation from the group allows for faster growth than remaining within the group...

finally.

Su Tianyan relented: "Okay."

"I agreed."

"Don't give him 100 million, approve 200 million instead."

"Let's see what kind of trouble he can cause, shall we?"

……

……

"Sister Chestnut, headquarters replied to my email."

"Oh? You're back so soon?"

"The Crown Prince's emails will definitely arrive quickly. I guess my father and his advisors will analyze them immediately and then respond."

"So what did your dad say?"

The two of them reviewed the email together:
Hello, Mr. Su Cheng...

Ye Li didn't feel anything at first, but when she thought that Su Tianyan was the head of the group, she felt a little uncomfortable.

When a father calls his son, he has to use the tone of an official document.

"I'm dying of laughter. Mr. Su Cheng? It reminds me of the scene in 'The Young Marshal' where the old marshal sends a telegram, addressing his son as Mr. Hanqing in a sarcastic way."

Su Cheng was amused by Ye Li: "Pfft..."

Stripping away a large section of redundancy, the only useful sentence is this:

[After serious discussion at headquarters, your project proposal has been approved. Business activities will be conducted based on the 'Advanced Individuals Program'. Effective immediately, you are relieved of your position as head of the business consulting department at "Yh International" but your K14 rank will be retained.]

"No, why did your dad demote you a grade?"

Ye Li was dumbfounded when she saw the email. Did applying for the Advancement Program come with a demotion?
Removal from office is normal, but demotion?
Su Cheng was already used to it: "It's my dad's normal procedure."

Su Cheng guessed that the old man probably felt that he had become too independent and wanted to teach him a lesson.

"Your dad is really..."

Ye Li couldn't think of a suitable word to describe Su Tianyan for a moment.

So many people in the group were forced to leave just to avoid relegation.

"Your dad is too strict with you. How can he demote someone like that?"

"Oh well, whatever, I don't care."

Su Cheng certainly didn't need it, but Ye Li didn't like this approach.

Unlike Ye Li, Su Cheng didn't experience much emotional fluctuation regarding this matter. Instead, the funding issue made him realize something was amiss.

The old man actually gave him 200 million yuan?
"Isn't this great? How much do you think is appropriate for him to give you? Fifty million?"

"Eh."

"Don't say anything."

"I think it would be most normal for the old man to cut the price down to 50 million or 10 million."

To Su Cheng's surprise, the old man not only didn't try to lower the price this time, but also approved double the amount of funding for him.

"Have you considered that your dad might demote you?"

"Not this one."

Ye Li asked Su Cheng to look at how the equity agreement below was allocated.

The most common ratio for the Forward Plan is 51 to 49, with the group holding 49% and not interfering in operations, only sharing profits.

There are also quite a few with 64, 73, and 82.

There are 9 to 1 ratios.

This time, Su Cheng's approved share was 90/10, with Su Cheng taking 90% and the group only taking 10%.

Money isn't important; to the old man, money is just a number.

What Su Cheng found acceptable was that the old man didn't take such a large shareholding, nor did he divide the shares into A and B shares.

In this way, the old man would no longer be able to influence Su Cheng's decisions through any means, and Su Cheng would have absolute control.

Su Cheng predicted that if he didn't apply for the Advancement Program, the old man would most likely transfer him to UNV as president, and he would probably have to bite the bullet and fight against Jin Hong Group.

Because the old man had already shifted the blame and the hostile sentiment onto him, he and Zhang Yangwen were now in a state of conflict.

The old man was unaware that Su Cheng was aware of the situation, nor did he know that he had implicitly admitted to Zhang Yangwen that he knew. Under these circumstances, the old man still approved the application and gave him double the funds.

If the old man had given her 5 million, Su Cheng probably wouldn't have been under so much pressure.

If he were given 200 million, and he didn't perform well, the old man would definitely give him a severe beating.

This goes without saying.

Ye Li asked, puzzled, "No, why do you care whether he gives you the increased intensity or not?"

“You’re at least half-detached from the group now, so you can do your own thing.”

Su Cheng:?
what?
Wait.

Sister Chestnut seems to be right.

He didn't care whether the old man would increase his intensity or not.

Su Cheng cursed inwardly.

Grass.

He's developed a conditioned reflex to it now, and he's constantly living in fear.

In reality, there's no need for that.

"What direction were you referring to again, real estate?"

"Yes, real estate."

The period from 2016 to 2021 was a market economy bubble, and Su Cheng was bound to participate.

"Show me how you allocate your money."

"it is good."

Su Cheng frankly showed Ye Li his asset allocation.

Of the total, 30 billion is being allocated domestically, 15 billion is being deployed overseas for hedging, and another 15 billion is being kept as an emergency reserve fund.

The total scale is six billion.

45 billion was siphoned off from Australia, and 15 billion was stolen by Su Cheng from the group through underhanded dealings and the transfer of benefits, including the sale and exchange of shares in "I Tell You" and Tangli Cafe.

With 60 billion in capital, it can make systematic industrial layouts and invest in multiple companies in the upstream and downstream of the industrial chain to form an ecological synergy effect.

It can also focus on capital-intensive industries such as new energy, semiconductors, and biomedicine, supporting portfolio companies in completing key technology research and development and capacity expansion.

This amount of funding allows Su Cheng to implement more complex investment strategies.

In some M&A transactions, experts usually only need to use a portion of their own funds, about 30% to 40%, and solve the rest through debt financing methods such as bank loans and bond issuance.

In the secondary market, this money can also be used as margin through derivative instruments such as stock index futures and options to control asset positions with a value far exceeding the principal, thereby amplifying returns.

Therefore, after obtaining approval from Lao Deng, Su Cheng was not considering what to do with the 200 million, but rather the 3 billion in domestic funds.

The 2 million was a performance for Old Deng.

30 billion is Su Cheng's actual principal.

This money was hard-earned; Su Cheng spent a long time and even sold her body to get it.

That was so damn hard.

The first question is whether or not to use leverage.

Using leverage and not using leverage are two fundamental differences.

The period from 2016 to 2021 was an absolute economic bubble.

Moreover, it's quite different from the island nation of the 90s.

To think that the past five years have been a real estate bubble is to be a complete idiot.

The island nation's problem is just a real estate bubble, mainly due to mortgages; they don't actually have any debt.

But Kyushu is different.

During this period, the commercial logic of the entire society was driven by two major engines:
First, real estate.

With rising housing prices at its core, a huge asset wealth effect and massive investment demand have been created.

Second, consumer credit.

With internet finance at its core, it has created unprecedented consumer convenience and enormous advanced purchasing power.

These two drivers are complementary and mutually reinforcing, jointly giving rise to "super prosperity" in more than a dozen fields.

Real estate development is the absolute epicenter of this bubble.

Through a high-leverage, high-debt, and high-turnover model, developers earned astonishing profits amid expectations of continuously rising housing prices.

Among them, Evergrande and Country Garden are representatives of scale expansion.

Vanke, Baolong, and other companies are the leading players in the industry.

Besides real estate companies, who else made money?
The most direct upstream and downstream sectors, such as construction, building materials, decoration, and home appliances, provide them with a continuous stream of orders due to the demand for hundreds of millions of new homes being built and decorated.

In addition, there are banks and trusts.

They are the blood transfusion workers for the bubble.

On the one hand, the real estate industry is deeply integrated with real estate developers' development loans and personal mortgage loans.

On the other hand, they provide financing to real estate companies through trusts and other channels, earning huge profits.

Luxury car manufacturers are also among the beneficiaries.

The illusion of wealth from rising property values, coupled with zero down payment and low-interest auto financing, has made buying a luxury car the best way to show off one's status and reward oneself.

BBA (BMW, Mercedes-Benz, Audi), Porsche, Lexus, and the later-emerging Tesla, as well as major auto finance companies, all made money.

Downstream in the automotive industry, used car dealers also make a lot of money, both before and after the bubble burst.

There are also high-end liquors.

Represented by liquor companies such as Moutai, Wuliangye, Luzhou Laojiao, and Yanghe.

With a booming economy, frequent business activities, and personal banquets, the social and financial attributes of high-end liquor have been maximized, making it a hard currency in the market.

This includes medical aesthetics and health.

People have "money and leisure time" and are willing to invest in their appearance and health.

With the addition of consumer loans, medical aesthetic procedures and health check packages that often cost tens of thousands of yuan are no longer out of reach.

Representative companies include Aimeike, Bloomage Biotechnology, and SoYoung.

There's also tourism and luxury goods.

"The world is so big, I want to go see it."

"A cure-all".

Consumer loans offer the possibility of instantly fulfilling these high-priced, non-essential "dream-like consumption" needs.

Major airlines, high-end hotels, and luxury brands are all indirect beneficiaries.

We should even add the education and training industry to that list.

The growth of wealth and class anxiety among the middle class has spurred them to invest heavily in their children's education and self-improvement, with parents and individuals willing to pay exorbitant tuition fees.

TAL Education Group, New Oriental Education & Technology Group, Offcn Education Group, and DaNei Technology are also beneficiaries.

Real estate is responsible for creating paper wealth and confidence.

Consumer loans are responsible for turning this confidence and future income into immediate purchasing power.

These two wheels drove each other, turning faster and faster, bringing all the aforementioned related industries to unprecedented historical highs, until the bubble finally began to burst.

This is the basic logic behind Su Cheng's future business empire and investment portfolio.

For Su Cheng, this was a sure-fire deal.

There is no reason not to use leverage.

Su Cheng not only wants to leverage, but she wants to leverage the maximum amount of leverage.

The old man used a small amount of 2 million to carry out a series of actions, while secretly using 30 billion to carry out a series of actions himself.

He can't do it all by himself; he needs to find a few white-collar workers to act as his firewall.

Su Cheng didn't know Vanke's boss, but he did know the eldest son of Baolong Group, surnamed Xu.

He played cards with Xu Ning, the eldest son of the Baolong Group, in Macau. That night, Xu Ning was the only one who lost money at the card table.

The Yin family of Atlantic Bank goes without saying; they are absolutely obedient.

Su Cheng felt that he could easily put Paulon and Atlantic Bank ahead of himself.

(End of this chapter)