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

Chapter 403 A Precise System

Su Cheng's proposal is for the three of them to jointly establish a holding company in Hong Kong Island or the Cayman Islands.

This holding company will be the final collection and distribution center for all future profits.

It is also the core of the interests that binds him, Baolong Group, and Atlantic Bank.

The shareholding structure is as follows: Su Cheng 51%, Baolong Group 24.5%, and Atlantic Bank 24.5%.

As the central figure in this economic bubble, Su Cheng reaped the lion's share of the profits.

Paulon Group and Atlantic Bank were responsible for execution, and these two companies took the smaller cut.

In terms of its role, Atlantic Bank may be more important, but first, it needs to be decided whether the Yin and Xu families want to form a community of interests with it.

The equity structure and other details can be fine-tuned later.

However, Su Cheng felt that the ratio was good enough and did not need to be adjusted, in order to avoid disputes and infighting later.

"So what exactly do we need to do?"

Su Cheng explained it to them in detail.

Baolong Group is responsible for acquiring high-quality land and projects in first-tier and strong second-tier cities through urban renewal, mergers and acquisitions, and all other means.

The profits from its traditional development still belong to Baolong Group.

However, for all projects acquired through alliance resources, the three individuals' holding companies must enjoy a 30% share of the profits in the form of "phantom shares" or "excess profit sharing".

Atlantic Bank was responsible for providing the alliance with large-scale, low-cost, and efficient priority funding for its operations.

The Yin family will receive all the interest income from the loans, but for financing led by the three of them and exceeding the usual risk control, 50% of the excess interest or handling fees they receive must be injected into the holding company.

The capital holding company headed by Su Cheng will be responsible for the capital operation, financial innovation, and equity investment of all projects.

This includes the final exit time, timing, method, and channel.

Su Cheng collects management fees and performance-based commissions.

But the same thing.

50% of all capital gains achieved through the resources of their trio will also be injected into the holding company.

Finally, the distribution is made in the form of 51%, 24.5%, and 24.5%.

Xu Ning and Yin Jiazhi fell into a long silence, as if the air had frozen.

The two men looked at each other in disbelief, completely unable to believe that Su Cheng had clearly defined the specific responsibilities of the two companies, as well as the future plans of the Alliance Holdings.

Su Cheng even came up with a name for the offshore holding company: Trident.

Land reserves worth hundreds of billions.

Credit issuance amounting to tens of billions of yuan.

A market size in the trillions.

This...this...even Su Cheng's final statement about the "peak of the bubble" and the "end of the cycle" was like a needle, leaving the two of them in disbelief.

Both agreed that there might be a fundamental difference in values ​​between them and Su Cheng.

Su Cheng had anticipated their reaction, so she patiently continued her explanation:

"There is nothing wrong with believing in growth, believing in the model, and believing in the era we live in."

"But sometimes many people overlook a variable."

"A variable that no economic model can quantify."

"human nature."

Su Cheng's gaze swept over Xu Ning, becoming deep and thoughtful.

What is the value of a piece of land?

"Is it its construction cost, or the price of another plot of land next to it that was auctioned off yesterday?"

The answer to this question is, of course, the latter.

"Therefore, the essence of real estate is not physical, but psychological."

Su Cheng then looked at Yin Jiazhi: "What are the risks of a financial product?"

Is it the quality of its underlying assets, or the market's consensus on its future value?

The answer to the question is, of course, the latter.

"Therefore, the essence of finance is not mathematics, but consensus."

Xu Ning and Yin Jiazhi held their breath simultaneously.

Su Cheng is deconstructing the world they live in in a way they've never heard of before.

In the coming years, they will witness an unprecedented explosion of 'consensus' ignited by massive lending.

Su Cheng's tone was completely flat, yet it sent a chill down their spines.

"Hundreds of millions of people will be drawn into a collective hypnosis of 'assets will always rise'."

"This is not economic growth; it is a nationwide psychological movement in the name of 'wealth'."

"All psychological activities have a common endpoint, which is: wakefulness."

"When the hypnosis ends and the consensus collapses, all that's left to support it is the debt."

Xu Ning's lips parted slightly, and he felt a certain firm belief in his brain crumbling.

For the first time, he realized that the land auctions worth tens of billions of yuan that he participated in every day might really just be a psychological game.

Yin Jiazhi felt a chill run down his back.

His so-called complex financial models appear so fragile and laughable in the face of terms like "collective hypnosis" and "economic bubble."

The model can calculate the default rate and also calculate the opponent's hole cards at the poker table.

However, it is impossible to calculate the critical points of madness and fear.

Su Cheng did not ask them to reply immediately.

This is a big deal.

Even for conglomerates of the size of Paulon Group and Atlantic Bank, it would be impossible to make a decision in such a short period of time.

Because of Su Cheng's misjudgment, their asset liquidity dropped to negative, and the daily interest generated would cause them to lose money, resulting in a significant reduction in the value of their assets accumulated over decades.

The two of them hadn't made any preparations for this at all before they came, damn it!
They have a lot of authority, but that doesn't mean they have that much authority.

This is a bet on everything.

Although Yin Jiazhi and Xu Ning are already powerful figures in the family business, ...

Their father is still alive.

I can't make that decision.

Moreover, there are contradictions in this matter.

Before coming here, her family had already told her that if Su Cheng really wanted to talk business with them, no matter what kind of business it was, she had to agree.

The pressure was immediately placed on Yin Jiazhi and Xu Ning.

According to Su Cheng's plan, both Baolong Group and Atlantic Bank could reap considerable profits from what Su Cheng called the "bubble".

If the evacuation is timely, the number could easily multiply several times over.

So now we also need to consider the issue of attitude.

If they don't agree now and go back to think about it for a few days, then when they come back, the equity distribution might not be the same, and it might be even less.

Don't ask them how they know; that's just how capital works. Both of them have used this kind of psychological tactic in business negotiations quite a bit.

And it also involves a rather important point.

That is……

Neither Paulon Group nor Atlantic Bank were alternatives before this plan began.

Besides Baolong Group, other real estate developers in Kyushu include Vanke, Country Garden, Evergrande, Wanda, and others.

There are even more banks.

Standard Chartered Bank, Citibank, HSBC, and various joint-stock banks and city commercial banks.

Their strength is not much lower than theirs.

Why were they chosen?
The Emperor Group also has real estate companies and financial conglomerates...

But neither Yin Jiazhi nor Xu Ning dared to ask this question, because it might offend Su Cheng.

I've already chosen you, do I need any other reason?

Those who didn't choose the Geely Group must have their own reasons.

They only need to choose one of these three answers: agree to participate, go back and consider it, or reject Su Cheng's proposal.

If she doesn't agree outright, Su Cheng might consider replacing her.

in fact.

Yin Jiazhi and Xu Ning were both overthinking it.

Su Cheng didn't actually put that much pressure on the two of them. He didn't have that much ability to contact various banks and real estate companies.

If he were to contact other commercial banks, they would definitely be after the reputation of the Emperor Group, not Su Cheng.

Moreover, Su Cheng didn't want the people from Emperor Group to get involved, because then she wouldn't be in control anymore, and the old man could take over at any time, which would easily lead to a collapse.

To know.

Su Cheng has more than just 2 million yuan in his hands; he himself is a small fleet.

Su Cheng will indeed give the two of them some time to consider, but it cannot exceed one week.

The bubble has already started.

The longer they wait, the later they enter the market, and the smaller their profits will be.

The earlier you enter the market, the greater the potential profits.

"Oh, right, there's one more thing I want to emphasize."

"This matter has nothing to do with the Emperor Group. The Emperor Group will not cover the losses in this battle."

This put even more pressure on Yin Jiazhi and Xu Ning.

In other words.

If we fail, then we truly fail.

After the collapse, Geely didn't even offer to help them.

Only now did the two understand what Su Cheng had just said: whether to acknowledge him or Emperor.

So this was really something Su Cheng "independently" orchestrated?

What do you mean?
Is there internal strife within the Su family?
Is Su Cheng trying to develop his own power?

After a moment's thought, Xu Ning immediately gave his answer: "President Su, Baolong Group is willing to participate in this battle, voluntarily becoming one of the three spears in your trident, 100% executing your decisions and cooperating with your actions."

Xu Ning's thoughts were not that complicated.

At this point, he had completely forgotten about economic analysis, market analysis, and financial models.

Xu Ning focused his attention on Su Cheng's identity and status within the Emperor Group.

In Xu Ning's view.

Su Cheng is going to take over the business in the future.

But for some unknown reason, he personally took charge of starting his own business.

This is something worth considering.

Whether they win or lose, Baolong Group doesn't actually lose money.

If they win, Baolong Group's assets will multiply several times, turning it into a super-large company.

It's okay if we lose.

They helped Baolong win Su Cheng's trust and favor.

With the heir of the Emperor Group around, what are they afraid of?

At this moment, attitude is the most important!

The longer he hesitates, the lower his initial trust in Su Cheng will be, and his future potential may be limited.

Going back to consider it is out of the question; they would probably be directly rejected by Su Cheng.

Inviting them here is already giving them a lot of face.

Xu Ning himself felt that if he went back to consider it, he would be ungrateful.

If I go back and discuss this with my dad, his attitude will probably be the same as mine.

and so.

Xu Ning immediately gave an affirmative response on behalf of Baolong Group.

Ok?
Su Cheng was slightly surprised.

He didn't expect Xu Ning to give him his reply so quickly.

My relationship with Xu Ning is so-so; we even had a minor disagreement at the card table.

Su Cheng had always assumed that Yin Jiazhi, with whom she had previously collaborated in Australia, would be the first to give an answer.

"Young Master Yin, and you?"

Yin Jiazhi was still in a daze.

No... you fucking bastard!
Your quick agreement makes it seem like I'm being disrespectful to the young master.

This matter is indeed risky, and the risk is quite high.

But if there were no risks, would Su Cheng still have approached them?

Why don't they just do it themselves?

If you want to think about it, go back and think about it together. Why did you agree so readily?
It's over.

Yin Jiazhi felt that it was a bit late for him to agree now.

Every second he delayed, the less trust Su Cheng placed in him.

But this concerns the entire fortune of the Yin family.

It's not just the Yin family.

And then there's the reputation that the "Atlantic Bank" brand has accumulated over the years.

Yin Jiazhi did not want to see his bank go bankrupt and liquidate, and then make global news headlines.

"It's alright, Young Master Yin. If you insist, you can go back and discuss it with your family and advisors again."

"I can give you a week."

Su Cheng simply brought it up, telling Yin Jiazhi not to be so nervous.

Yin Jiazhi immediately replied, "No, no, no."

"We also agreed to participate in this battle."

"But Mr. Su, there is something I want to emphasize. I was just caught up in your grand plan and hadn't recovered yet, so my reaction was a little slow."

"Your plan is absolutely brilliant!"

"President Su, I'm really not hesitating, please don't overthink it."

Su Cheng: ???
Yin Jiazhi was still nervous.

"In that case, shall we begin preparations?"

"Yes, Mr. Su."

"President Su, we have no problem!"

"Hmm... no need to agree so quickly." Su Cheng thought for a moment, "I'll give you a week. You can back out at any time during this week, and I won't blame you."

"If you change your mind after a week, don't blame me for bringing up old grievances and holding you accountable later."

Su Cheng is quite open-minded.

This can't be forced.

Simply using the power of the Dihao Group is not enough.

If the two companies are not willing to cooperate, but instead implement the plan conservatively, or discount it during implementation, delaying or refusing for various reasons, then Su Cheng will have no choice but to comply.

So it has to be their own choice.

Su Cheng wasn't expecting a definite answer today; he was just trying to keep things confidential, concealing as much as possible from the old man, which is why he arranged the meeting.

Playing the good cop/bad cop with Ye Li was also to help the two of them understand the difference and concept between Su Cheng and the Emperor Group.

Only when Su Cheng, the real estate group, and the bank work together can they unleash their greatest power.

Without these two roles, Su Cheng would need to rely on her own wisdom and luck to seize every fleeting opportunity in the turbulent market.

Yes.

Even knowing there's an economic bubble, you still need luck when it comes to mergers and acquisitions.

Moreover, this model is very tiring, has a relatively low level, and represents success achieved by playing to the extreme within the rules.

Assuming that Baolong Group and Atlantic Bank fully cooperate, Su Cheng will not need to look for opportunities anymore.

He can create opportunities on his own.

Su Cheng no longer needs to adapt to the rules; he can influence them to a large extent.

Su Cheng could completely abandon reliance on the market and establish a sophisticated system capable of internal circulation.

"I don't need to emphasize the importance of confidentiality to you again, do I?"

"Even if you change your mind, don't reveal a single word to anyone else."

(End of this chapter)