Those Years When I Was Forced to Top the Forbes List

Chapter 89 A Long-cherished Wish for the Stock Market
From the Awakening of Insects to the Spring Equinox, and soon to the Qingming Festival, a whole month has passed. There is a path to the mountain of books, and the sea of ​​learning is boundless.

The quiet rural courtyards of Furong Village provide the perfect environment for studying and memorizing texts.

Ren Ying's tutoring was very targeted, focusing on his weaknesses in geography and math, and constantly improving him through teaching and problem-solving.

For the other subjects, Ren Ying believed that he already had the answering strategies, so she gave him an outline and had him memorize it repeatedly.

Chen Xuebing's comprehension-based memorization method is quite effective.

He started with the political aspects that interested him, and understood the core contradictions and solutions of each dynasty from the Xia, Shang, and Zhou dynasties, through the Spring and Autumn and Warring States periods, to the feudal period. Then, he learned about their culture, economy, and technology in the context of the times, which made it much easier.

This was his favorite subject, and after studying it, his views on many issues changed.

On the contrary, Chen Xuebing tried to study politics in depth, but found it difficult to understand, as there was too much to memorize and he found it uninteresting.

He didn't think it was a problem with his own political acumen, but rather that "Politics" wasn't about politics at all.

History is more like politics. And politics should be renamed "Class on Worldview, Morality, and Values" or "Foundations of Political Economy."

Even Chinese language classes, from an adult's perspective, contain too much Marxist influence.

The books for primary, middle, and high school all contain socialist values. Although Chen Xuebing agrees with most of them, his values ​​have already been formed. If some things are forced into his mind, he will feel that they are childish and even a little resistant. He looks forward to the open courses in university, which can give him some spiritual shock and reflection.

However, he had looked at the liberal arts programs at Chongqing Jiaotong University, and there weren't many options. There was no direct history major. If he had a choice, he would choose economics first to explore different economic ideas.

In short, I have gained a lot during this period.

The benefits weren't limited to just learning.

The sound of a motorcycle came from the courtyard downstairs. Jiao Gui called out "Brother" from below and then hurried upstairs.

"Brother, Sister Ying!" Jiao Gui greeted him with a cheerful and boisterous voice.

Jiao Gui and Ren Ying had been following Chen Xuebing for a long time and were already quite familiar with each other. Ren Ying rudely put the documents she was holding next to the stove and scolded:
"Keep your voice down! He's taking a test!"

Chen Xuebing didn't even look up, and while writing on the Chinese language test paper in his hand, he said, "It's okay, go ahead and say it."

"Lu Yiwen called. We sold 210,000 worth last week! The profit was over 40,000!"

"Oh." Chen Xuebing was not surprised by the number.

In March, they added a counterfeit phone business and significantly reduced prices. The Taobao store also provided a boost in traffic, and the Taobao store's profit reached 15 yuan.

In addition, the Huaqiangbei counter also earned more than 90,000 yuan.

Once the factory is operational, costs will be significantly reduced, and profit margins will more than double.

The expectation of a surge in business is the source of Chen Xuebing's confidence to spend money recklessly to expand his business.

However, we now have two more factory managers and employees, plus rent and utilities. As the number of employees increases, so will our expenses.

"Oh, brother, Lu Yiwen also asked you if you could get Huo Xiaowen to cooperate in buying used phones. He wants to add another used phone link, and a lot of customers are asking about it!" Jiao Gui added.

"Used phones... are a bit troublesome. There's inventory to stock up on, and you have to pay cash upfront. It's not a very profitable business."

As Chen Xuebing spoke, he put down his pen and chuckled:
"I originally planned to start with the second-hand business, but now this business has become a burden."

At this moment, Ren Ying suddenly thought of something and said, "You should make used goods!"

"Ok?"

"Didn't you need to file taxes? Selling used goods, now the simplified method calculates VAT, you can issue special invoices, and it only costs 3% tax, and I think there's even a 2% reduction! Taobao's turnover doesn't reflect the type of goods you're selling, you can file taxes as selling used goods, you can supplement a batch of purchase invoices yourself, that way you only need to pay 1% VAT, and the VAT will be made up! The purchase shortfall will also be covered, as long as no one deliberately audits you, your accounts will be plausible!"

Ren Ying had been worried about this messy, unsolvable debt for a while, but now that there was a workable solution, her eyes were full of excitement.

This feeling is probably only understood by those who have studied finance.

"Oh?" Chen Xuebing's eyes lit up slightly.

After a long pause, he slammed his hand on the table and said to Ren Ying:
"Okay! The company is in your hands. You handle the taxes, and as for the accounts... you can start with the general ledger, and I'll fill in the detailed accounts for the input taxes later when I hire an accountant."

Ren Ying couldn't help but reveal her silver teeth: "Then you'll have to pay a hefty 'bad debt fee' when you hire people. You need to provide receipts for millions of second-hand mobile phones. Just thinking about it is terrifying."

Chen Xuebing raised his eyebrows: "Why don't you do it?"

Ren Ying stuck out her tongue and stopped talking.

Jiao Gui, listening from the side, was completely bewildered: "Brother, why do we need to supplement these? I heard from Yu Yi that many companies that do this kind of small business don't keep accounts! And no one has checked for years!"

Chen Xuebing chuckled: "It's fine if you stay in this state of not understanding."

Jiao Gui felt rejected but didn't want to fall behind, so he pretended to be pitiful to Ren Ying: "Sister Ying, tell me about it!"

Ren Ying glanced at Chen Xuebing and cautiously guessed, "Small companies' accounts are usually not audited, especially individually run businesses like yours. The fact that he started consolidating his accounts so early... is it for a future IPO?"

She herself could hardly believe it after she finished speaking.

That idea is way too outrageous.

After thinking for a moment, he added, "Could it be to invite investors?"

Chen Xuebing laughed.

"Invite what investors? I am an investor. Xiao Ren, you seem to have a weak sense of ownership. What do you mean by 'yours' or 'them'? It's 'us.' We're going public, so you don't want the incentive shares in the option pool anymore?"

Financial requirements for listed companies: three consecutive years of profitability with a cumulative total of over 30 million yuan; in addition, cumulative operating revenue exceeding 300 million yuan or net operating cash flow (net inflow into bank accounts) exceeding 50 million yuan.

In addition, the financial profitability over these three years will directly affect the valuation of an IPO (Initial Public Offering).

Chen Xuebing needs a high valuation because he needs a large share capital.

He still remembers his original intention when he founded the company: to target the SSE 50 index.

The SSE 50 Index is a sample of 50 stocks (companies) selected from the largest and most liquid companies in the Shanghai Stock Exchange using scientific and objective methods. This index aims to comprehensively reflect the overall performance of a group of leading companies with the greatest market influence in the Shanghai Stock Exchange.

With limited share capital and few shareholders, where does the liquidity come from?
Share capital is the number of shares. In reality, it depends on how many parts the controlling shareholder divides the company into. The more parts, the more shares.

But if too many shares are split up, the share price will be lower.

He plans to adjust the share capital and set the initial share price at exactly 1 yuan.

In this way, as the company develops, shareholders will be able to directly see the increase in their company's stock price after listing.

No stock commentators are needed; investors only need to see their company's stock price X to know: "Oh, this company's stock price has increased X times."

Therefore, with a share capital of 1 yuan, the IPO valuation becomes particularly important.

Of course, once the company is large enough, a 1-for-10 or 10-for-100 stock split is quite intuitive. However, to follow this approach, the initial valuation is based on the initial share capital. [Stock market news/information follows, but is not directly related to the initial valuation.]

In 20 years, GDP has quadrupled, but looking back, the A-share market is still at 3000 points.

Stabilize the stock market and crush the short sellers.
The thought only lasted a moment.

"Bro, it's going public? How much money does that cost? I used to watch TV, and all those listed companies..."

Luxury cars? Buildings?
What kind of luxury car? What kind of building?
Jiao Gui didn't know how to describe it, so he could only keep expanding his arms to indicate that it was very, very big.

Although Ren Ying studied finance and had some economic knowledge, she didn't know exactly how much it should be.

Chen Xuebing also mentioned an option pool, but she doesn't even feel worthy of her current salary of 2200, so she doesn't even dare to think about it.

"What's the difference between someone who doesn't even dare to dream and a salted fish?" Chen Xuebing waved his hand. "How's it going with the matter I asked you to inquire about Huo Xiaowen?"

Jiao Gui quickly slapped his forehead.

“Oh, I asked! He said that recently a lot of new manufacturers have come to him to place orders. Also, Factory Manager Qi asked you that Feiyang New Market will be recruiting merchants in the second half of the month. Should we try to get in on that?”

Chen Xuebing sighed deeply.

I recently paid the remaining rent of 94,000 yuan for the office building in Chongqing, paid 10,000 yuan in wages to a few people in Shenzhen, and incurred more than 80,000 yuan in miscellaneous expenses at the construction site. With such a high income last month, I managed to save more than 40,000 yuan.

But then the issue of spending money came rushing in.

“Tell him that the tea fee is 200,000 and the rent cannot exceed 200,000. If you can reach an agreement, then do it.”

"Then I'll call him now."

"Don't panic, go to the construction site and bring Engineer Tan over here."

"it is good."

"Forget it, I'll go with you."

……

In just a month and a half after the Lunar New Year, the construction site had undergone a complete transformation.

The 7-meter-deep foundation pit for the first reservoir has been excavated, and workers are cleaning the bottom. An excavator is turning around nearby to dig a path for trucks carrying soil and rocks to reach the second foundation pit.

A portion of the earthwork must be reserved for later backfilling, and some of the earth and stone must be moved around within the limited space, which is called internal movement.

When there's too much of it and it has to be taken out and dumped, that's called "external transfer," such as the part dug down from the inner part of the mountain.

The retaining wall on the outer cliff has been built from three meters underground to the ground level.

The retaining wall excavated from the inner part of the mountain has also been half-built, about forty meters long.

These inner and outer walls are a solid guarantee to prevent the upper and lower levels of the sewage treatment plant from collapsing.

The repairs are going very well. Zhang Dajiang, who came from the construction site, is leading people to grout the retaining wall.

A long red banner was hung on the slope protection wall: "180-day sprint, efficient construction, quality assurance."

The original six-month construction period of 180 days, starting from after the new year, now seems to be shorter than that.

As Chen Xuebing was calculating the output value he had already generated, Old Tan, who was standing next to the deep foundation pit, saw him coming and immediately jogged over.

"The money's been distributed, so no one has any objections now, right?" Chen Xuebing asked with a smile.

"Of course!" Tan Maoshui laughed. "Everyone knows that we haven't submitted the progress report for the first phase of the project yet, but we're still confident that we can still pay out the money!"

Chen Xuebing wanted to report more work at once to get more progress payments, but the reporting cycle was almost every two months, so he could only order a delay and try to report it after the 4-meter-high retaining wall was completed.

M7.5 mortar-grouted rubble masonry, 100 meters long, with a slope that is thicker at the bottom and thinner at the top, with a thickness of 0.6-0.8, costs over 20,000 yuan per cubic meter at 75 pieces. Even if you quote 80%, it would still be around 16,000 or 17,000 yuan.

"How about it? I'll give you another week. Can you generate 50,000 yuan in output value?" Chen Xuebing asked hopefully.

Old Tan shook his head firmly: "We can't wait any longer! The progress payment is given to the entire project team at once! We were notified to submit the quantities on March 18th, and they submitted all the data before March 25th. Now we've dragged it out until early April. If we don't submit it soon, the other work teams will definitely be spitting in my face at the next project team meeting!"

Upon hearing this, Chen Xuebing let out a silent laugh.

"Don't worry, they won't dare to criticize you unless they don't want to share the road behind... Alright, that's settled then. We'll arrange for the supervisor to come and take over the survey tomorrow or the day after. Can we report a production value of 30 this time?"

"I'll try my best!" Tan Maoshui waved his hand: "Don't just focus on the quantity! There's also the profit! That Supervisor Bai, you weren't there when he came to do the earthwork ratio visa last time, so I didn't dare to make any arrangements. This time, will you arrange the acceptance, or should I go?"

Chen Xuebing scratched his head: "Supervisor Bai... how old is he?"

"There are probably fifty or sixty of them."

"Well... I guess he can't touch it anymore. Just treat him to a meal and give him a thousand. It's simple and practical, and it saves me money."

Tan Maoshui chuckled in a slightly lewd tone: "Fifty or sixty and you can't touch them... that's not necessarily true! I think their physique seems pretty good."

Chen Xuebing leaned back tactically: "Then you go with him? Call President Ren along too."

Tan Maoshui was all talk and no action; the moment he was told to actually use a knife or gun, he panicked and waved his hands frantically.

"No, no! My wife forbade me from going. You go, you go."

Chen Xuebing's mouth twisted slightly.

This old guy just can't handle things. He was so hesitant and timid when asked to touch breasts.

What's the point of doing engineering if I don't touch you?

This guy did a really good job, so Chen Xuebing didn't bother arguing with him anymore.

Are there any KTVs in the county?

Old Tan shook his head again: "I don't know! But there are several foot massage parlors."

"You son of a bitch..." Chen Xuebing glared at him coldly, "You go to foot massage parlors but not karaoke bars? What, you think karaoke bars aren't 'dirty' enough?"

"I went to get my corns removed!" Tan Maoshui cried out, "I'm always running around, I can't stand not getting them trimmed!"

"Holy shit." Chen Xuebing's face tightened. "You have a corn? You didn't sleep in my bed while I was gone, did you?"

"It's not contagious!" Old Tan was about to break down.

"...Alright, alright, I'll arrange the supervision! Also, I'm going to Gonghe Village in a couple of days to sign the highway contract. When you have the project meeting, set a time with those construction teams... next week, have them come over, and I'll assign them a portion of the work."

(End of this chapter)