Chapter 237: Will you kindly step into the jar?
Translator: _Min_ Editor: Rundi
Inside Linhua Building.
Wang Linhua sat in front of the office table with a gloomy look on his face.
The meat that was almost in his hands somehow slipped away and he couldn’t do anything about it. His mood was obviously not too pleasant because Jiang Chen suddenly introduced the smart drone control system 1.0 which completely disrupted his plans.
The domestic real estate on the market was contracting due to the high price, but no market became apparent by the day. Linhua Group during 2008 was indeed very profitable, but it was going downhill. With the population aging and the growth of excessive housing, the downhill trend to the real estate market was almost irreversible.
Even with the introduction of policies such as decreased interest rate, the second child, it was still too difficult to reserve the inevitable trend of the downfall to the real estate market.
Just like the previous glorious, but now doomed coal industry, the real estate market will have to accept its inevitable fate. This point could be demonstrated by the shaky results on the financial report of Linhua group. While still in the positive, but their margin was getting narrower.
Wang Linhua, who could foresee the end to this industry, obviously was not going to wait for his own death.
There were only two choices in front of Linhua Group.
One to expand to the international market, two to shift into a different industry.
It was challenging to expand into the international market, for simple reasons. Due to the identity of the largest shareholder of Linhua group. While this skin worked well domestically, it didn’t fair too well internationally. The current status quo is, to slice a share of the cake in the international market, then they would have to use the money to do so. Although Linhua Group had money, they were not like CNPC who could not care about losses and depend on government for subsidization. This route could work but at too high of a cost.
Especially because the international market was not within the territory of the Wang family, this increased too many variables for investment. The people back home didn’t dare to trick you, but it would a different case outside. Once on the international stage, they may not withstand the test of capital.
As a careful consideration, Wang Linhua didn’t use the first option.
On the second hand, it was easier to shift to a different industry. Just like the mine owners that sold the unprofitable mines, some invested in sports, some in movies, even some entered the real estate market to eat “the leftovers.”
While Linhua Group was prepared to enter the entertainment industry. But at this time, Future Technology’s rapid growth gave Wang Linhua a tempting idea.
One software, a few servers, thirty-something programmers and sales would do. Once the software received recognition by the market, cash would be flying in.
Although Wang Linhua was lusting for Future Technology’s profit, he consciously knew that tech was an industry where risk and reward both existed. Even Buffet didn’t dare to invest in it, which meant that the risk and reward were not proportional.
Therefore, he had some scandalous ideas.
High risk, it only referred to the tech company that hasn’t managed to secure a stable source of revenue generation. For Future Technology that already has done so, there was no risk. As long as he controlled Future Technology, and use this as the point to enter the tech industry, Linhua Group would smoothly complete its transition!
Future Technology’s operating condition was smooth, had stable cash flow, the capitalists at Wall Street with bundles of cash could not exchange away Jiang Chen’s share. But for Wang Linhua it was not a big deal. In this country, having money meant nothing, or there wouldn’t be so many people with money leaving.
But Jiang Chen didn’t manage to leave yet. Future Technology’s primary operation was in the country. Before it could even enter the world stage, it was the perfect opportunity to make his move!
As long as he controlled Future Technology, he could enjoy the current profits and lead Future Technology to expand into the military tech field. Military artificial intelligence happened to be the strategic focus of the national defense now. It would not only increase the Wang family’s stake politically, but it could also allow the core asset of the Wang family smoothly transition through the downward trend in the real estate market.
Two birds with one stone.
Because of this, Wang Dehai would permit his action.
But unfortunately, his plan fell through.
Wang Linhua rubbed his sore temple and picked up a document on the table. He forced himself to focus on the work at hand and not think about those bothersome things.
But then, there was a knock at the door.
With a frown, Wang Linhua cleared his throat.
“Please come in.”
His secretary walked in with a pile of documents in his hands.
“What good thing just happened? You are so happy,” Seeing the smile on the secretary’s face, Wang Linhua’s eyebrows jumped as he said emotionlessly.
“President Wang, the company just received a big project.” Calming his excitement, his secretary Zheng Kai spoke with a trembling voice.
“How big of a project?” Wang Linhua slanted his mouth as he leaned against the chair.
Big project? The number of buildings yet to be sold are almost rotting in Linhua Group’s hands. Knowing that it was hard to sell houses and that the stock market seemed to be rising again, who would save the housing market now?
“It’s a project overseas. With initial estimates totaling over ten billion USD!”
Hearing this, Wang Linhua’s eyes widened as he immediately sat up.
“What did you say? An overseas project? How much?”
“Ten billion USD…”
He stood up from his chair, circled the table, and ripped the documents from the secretary’s hand as he looked emotionally at the documents in hand.
“Pannu Island’s 680 square kilometers tourism, commercial as well as basic infrastructure agreement… Johnny International?” Wang Linhua was more and more excited as he read through the document, but when he saw the company name, he paused for a moment.
He never saw this name before.
“They have passed through the credit check for the first phase of construction fee. It is rumored that the party behind them is a South African Gold company, they have two mines that could be used as collateral for the loan, so it should be fairly trustworthy.” Zheng Kai saw the skepticism on Wang Linhua’s face as he rushed to explain.
He had heard about Pannu Islands before; a small country with relatively rich tourism resources but lacked infrastructure development. The foreign relation of Pannu and Hua was just stable, although they have a consulate in Wanghai city, they still rented an apartment in Shangjing as an embassy.
Because they didn’t have the money to build the basic infrastructure, they naturally could not attract investments. But if capitals were willing to heavily invest in the island country on the Pacific, everything would be different.
Based on this proposal’s content, the project would be divided into four phases. After the completion of the first phase, Johnny International would pay the first phase of two billion USD in agreement, then the remaining eight billion would be paid at the end of the construction. As to the guarantee fee of two billion, it would be paid using the land near the construction zone of 110 square kilometers, a 70 square kilometers adjacent island as well as cash.
Paying with land pleased Wang Linhua perfectly.
Without exaggeration, once the ten billion USD infrastructure is completed, the land sold to him at a discount would more than double in price! As to whether the land would be developed by themselves, or sold to other people, it would be profit regardless.
Wang Linhua’s hands trembled.
Even if he had seen the ups and downs in life, a ten billion dollar contract was a first.
This contract, for the Linhua Group in the stagnant domestic market, was an opportunity.
He didn’t get overblown by the amazing deal. Inhaling a few times to calm his breath, Wang Linhua told his secretary in an undertone.
“Pannu Islands’ political environment, Johnny International’s background, I need you to give me a detailed report in two days. Do your job and your bonus doubles.”
There was too much unknown in the international market. Without a detailed investigation, a wrong investment could send the company crashing. Even if the proposal was attractive, Wang Linhua didn’t let his guard down because of this.
But when he saw the two gold mines as collateral in the appendix of the proposal, as well as the asset verification from the UA side, he began to feel floaty.
“Yes!” Hearing his bonus could double, Zheng Kai was ecstatic and immediately left the office.
Seeing that Zheng Kai closed the door, Wang Linhua threw the folded documents on the table, the gloom on his face vanished.
[This is god helping me! How did that saying go…Misfortune may actually be a blessing.]
Wang Linhua almost wanted to shout to the sky to unleash his thrilled emotion.
Although he lost the opportunity to control Future Technology, there was a major breakthrough in the international market.
After taking a few more deep breaths, Wang Linhua grabbed his phone and called the person responsible for managing the Wang family asset.
Once the ten billion USD deal is revealed, Linhua Group’s market capitalization would without a doubt double! Because of his pessimism towards the real estate market, he used the bull market before to decrease Linhua Group’s holding. But now, he must increase his holding again through the secondary market. He must do this before the details are revealed so that he can increase the holding of the Wang family in Linhua Group and maximize their gains!
Wang Linhua excitedly licked his lips before he sat back in his chair. He picked up the phone, called the manager of each department as he planned for a brief meeting.
They must win this contract!
But not even in his dreams could he imagine Jiang Chen had dug a giant hole for him, waiting for him – the Wang family to jump inside.
(1) Will you kindly step into the jar? – Try what you have devised against others.