Chapter 105 The Betting Agreement!
Fang Huan Investment's quarterly results announcement was like a bombshell, sending shockwaves through the financial world.
The most bewildered people were not others, but Fang Huan Investment's own employees.
Especially those employees who worked hard for a quarter only to find that their department's performance was mediocre or even lost money, were completely stunned on the spot!
"Holy crap! Our company... made this much money this quarter?! Really? Am I seeing things?"
"What a joke! The market has been terrible this quarter, our entire department has lost a fortune! The manager got a real dressing down from upstairs because of this!"
"Where did this astronomical profit come from? It's outrageous!"
The employees at Fang Huan Investment were completely baffled by their company's performance report, feeling as if they were dreaming.
"Hey, what's so strange about that?" a well-informed person said in a low voice, feigning mystery.
"Most of the profits came from the newly established ' Special Trading Department '."
"That's not all! I heard that before the Special Trading Department was even established, that legendary CEO Su had already gone on a killing spree, making a fortune!"
"That's right! This news was just circulating on the side before, and everyone was skeptical."
When these results came out, wow, it was a definite confirmation!
The whole company is buzzing about it now, saying that the average bonus in the Special Trading Department is enough to make people in other departments envious!
The Personnel Department's phones are ringing off the hook; people from every department are scrambling to get into the Special Trading Department!
Unfortunately, that place isn't one you can just walk into.
It is said that only the chosen ones, selected by President Su's "intuition" which is comparable to a divine oracle, are qualified to step into this place!
Special Trading Department, in the conference room.
"Hey, I heard that the junk shares we bought back were bought by Changqing Group for a whopping 10 billion, and they even took out a mortgage loan!"
Newcomer Liu Yang looked excited.
"Pshaw, 10 billion sounds scary, but for a behemoth like Changqing Group, it's nothing."
That is, their cash flow was temporarily tight because they were busy with internal power struggles and spending money to build that new housing project.
Once their European hotel project kicks in, the cash flow will be pouring in, and Changqing Group's good days are just around the corner!
Liang Haiyuan offered a seemingly profound analysis.
At this moment, Shen Zekai is indeed "working tirelessly" for the future of Changqing Group.
It has to be said that there was a reason why those old guys in Changqing Group risked betraying the Old Chairman to support him in taking the helm.
This guy has a real knack for business and he's got some skills. Not long after taking office, he stabilized Changqing Group, which was almost sinking, and it looks like it's about to set sail again.
Especially with this foray into the European hotel industry, their first flagship store in France is about to open, and the initial market feedback has reportedly been overwhelmingly positive.
"Leaving aside Europe, just the successful completion and opening of new residential projects in Shanghai next year would be phenomenal! I heard the current valuation has already soared to 70 billion!"
"Sigh, what a pity. I didn't expect Changqing Group to recover so quickly."
I was worried that if they were unlucky, mismanaged their business, or their cash flow would dry up.
Our company might be able to snag a bargain and acquire their flagship project, " Evergreen Heaven Seal "!
Liu Yang said with some regret.
"Dream on! Do you think big companies are made of paper? If they were that easy to collapse, what kind of big company would they be? Even a starved camel is bigger than a horse, don't you understand?"
Liang Haiyuan, standing nearby, scoffed.
Theoretically speaking, if Changqing Group really does experience a cash flow crisis, Fang Huan Investment could indeed take over that new housing development in Shanghai.
But this task is five stars difficult!
Having collateral doesn't mean you can just take it away; it depends on the contract. The twists and turns and legal procedures can be incredibly frustrating.
"However, as far as I know," Liang Haiyuan lowered his voice, instantly silencing the small group,
"Our CEO Su added a 'debt settlement in kind' clause to the contract and also signed a ruthless 'betting agreement'!"
"Holy crap! They even used a 'betting agreement'? They're betting that he can't pay up! That's ruthless!"
The people nearby gasped.
"It seems that Shen Zekai has truly been driven to a dead end this time, and has no other choice."
Otherwise, how could he possibly sign such a contract, which is practically a bargaining chip, for a flagship project like this new housing development?
It's practically like deliberately putting your neck into a noose!
The crowd marveled, and for good reason.
Because the "debt settlement in kind" clause in the contract clearly defines the method of asset disposal, while the "betting agreement" is even more ruthless!
It actually grants Fang Huan Investment a privilege:
If Changqing Group defaults, for example, by failing to repay on time and in full, or by failing to meet other key performance indicators stipulated in the agreement, it will lose this 'bet'.
At this point, Fang Huan Investment would have the right to acquire the lucrative new property at an "internal price" far below the market price, or even at a symbolic price, as stipulated in the agreement!
"That's what they say, but can it really work? Wouldn't Changqing Group have to do everything in its power to prevent this from happening?" Some people were still skeptical.
"That's true. This contract is entirely beneficial to us, but to be honest, it's probably only a matter of time before Changqing Group pays off this debt."
That's why Shen Zekai agreed to sign this contract; after all, the possibility of triggering these clauses is extremely low.
The implication is that this new housing development is just a pie in the sky, all talk and no action.
Su Hao listened from the side and chuckled to himself:
"When the contract was drafted, the director probably thought,'Since we can't have it anyway, we might as well add some extra ingredients to annoy the other party,' and crammed in every unreasonable clause he could think of!"
"Alright, stop overthinking. Let's just focus on our own things," Su Hao interrupted the discussion.
" If Changqing Group pays back the money readily, we'll have an extra 10 billion yuan in cash flow for no reason. Why not?"
Even if they can't pay it back right now, we can still steadily earn high interest; it's a win-win situation no matter how you look at it.
"President Su, shall we begin the meeting?"
"Okay, let's begin. We've been rambling on a bit too long today." Su Hao sat in the main seat, looking at the projection screen.
Liu Yang quickly cleared his throat and began his report:
"Breaking news: The Federal Reserve has finally ended its long-standing zero-interest-rate policy, causing the dollar to rise, while the euro has fallen quite sharply..."
In the United States, they have finally ended their long-standing zero-interest-rate era.
Back in 2008, the subprime mortgage crisis that swept the globe almost brought the global economy to a standstill.
In order to save the market, the Federal Reserve has had to maintain a zero interest rate.
Now, with the economy gradually recovering, raising interest rates is imminent.
"..." Su Hao picked up a pen and lightly touched the dollar and yen marks on the document.
Sure enough, that familiar, mysterious premonition came again!