Chapter 535: Wanxiang's Slimming Record

In the ninth month after the three subsidiaries became independent, Shenzhen's autumn was unusually crisp.

Li Yaozong stood by the window of the Wanxiang Dasha, his gaze passing over the outline of Fenghuang Mountain and settling on the three brightly lit buildings in the distance.

The one on the left was Fenghuang Chat, the middle was Wanxiang Live, and the right was Wanxiang Video.

Nine months ago, they were still cramped as three departments within the R&D Center; now they are three independent companies each valued at tens of billions.

The telephone on the desk rang.

It was Wang Bo.

"President Li, the Q3 data for the three companies are out; are you available now?"

Li Yaozong pressed the speakerphone.

"Go ahead."

Excitement lay beneath Wang Bo's voice.

"Fenghuang Chat has surpassed 530 million monthly active users, with advertising revenue up 147% year‑on‑year. Wanxiang Live has exceeded 300 million MAU, with a single‑quarter merchandise transaction volume over 100 billion. Wanxiang Video has 240 million MAU, and membership revenue has quadrupled."

He paused.

"Combined, the three contributed profit this quarter that exceeds the entire last year."

Li Yaozong gave a hum.

"Got it."

After hanging up, he glanced again at the three buildings.

Before independence, they were bundled together, competing for resources and tripping each other up. After becoming independent, each ran its own track and actually moved faster.

He recalled a saying his father had once made.

"A single chopstick breaks easily; a bundle of chopsticks doesn't. But if the bundle is too thick to grip, it's better to separate them for use."

Now, he understood.

At two p. m., the conference room was packed.

Li Yaozong looked around and spoke.

"Everyone has seen the data from nine months of the three subsidiaries' independence."

He paused.

"I want to ask: what other businesses are slower when bundled together?"

The conference room fell silent for a few seconds.

Fang Wenshan was the first to raise his hand.

"President Li, the apparel segment—Wanxiang Sports now operates independently but still hangs under the group. Each year, budgeting and approval processes take at least three months. By the time approval comes, the season is over."

Liu Yang added.

"Home appliances are the same. Refrigerators, air conditioners, washing machines share a sales channel, but R&D fights its own battles. The fridge wants smart features, the AC wants fresh air, the washer wants large capacity; none can persuade the others, and in the end nothing gets done."

He Xiao muttered from the side.

"The real‑estate side is even more troublesome. Wanxiang Community has been building for five years and only three units are finished. Every land, planning, and budget approval must go through the group process. By the time approvals finish, land prices have risen again."

Lin Jiawen raised a hand.

"Retail and hotels show the problem more clearly. Wanxiang Supermarket wants to open a new store, Wanxiang Hotel wants franchising, both need group guarantees. But the group's review cycle is too long, often missing the optimal window."

Li Yaozong listened to each of them speak without interrupting.

After everyone finished, he finally spoke.

"So what do you think we should do?"

Wang Bo stood up and walked to the whiteboard.

He drew a large circle and wrote "Wanxiang Group" inside.

Then he drew a dozen small circles around it, each labeled: Fenghuang Chat, Wanxiang Live, Wanxiang Video, Wanxiang Sports, Wanxiang Home Appliances, Wanxiang Real Estate, Wanxiang Retail, Wanxiang Hotel, Wanxiang Mining…

"The group now has twenty‑three independently accounted business units."

He pointed at the small circles.

"Three of them have already become independent subsidiaries; the other twenty remain bundled within the group."

He drew several lines between those small circles.

"These twenty businesses have little interrelation. Home appliances and apparel are unrelated, real estate and retail are unrelated, hotels and mining are even less so. Bundling them only adds management costs and offers no benefit."

He looked at Li Yaozong.

"President Li, my suggestion is—spin all of them out."

The conference room was silent for a few seconds.

Fang Wenshan raised his hand.

"If we spin everything out, what does the group retain?"

Wang Bo pointed at the central large circle.

"Automobiles, smartphones, banks, the R&D Center, and the Research Institute."

He paused.

"And Wanxiang Holding."

He looked at the people seated.

"These are Wanxiang's core. Automobiles and smartphones are products, the bank is finance, the R&D Center and Research Institute are technology. Everything else is peripheral."

He Xiao muttered from the side.

"Should automobiles also be spun out?"

Wang Bo shook his head.

"Automobiles stay. Like smartphones and the bank, they are core. Moreover, cars need deep integration with phones—autonomous driving uses phone chips, phones need car batteries. These two must stay bundled together."

He Xiao nodded.

Liu Yang raised his hand.

"After we spin them off, how will the group manage them?"

Wang Bo was already prepared.

"Just like the three subsidiaries. Wanxiang Holding holds fifty‑one percent, and finance is centrally managed by the group. The rest is up to the subsidiary."

He paused.

"They set their own development direction, recruit their own team, and submit their own budget. The group only handles two things: year‑end profit sharing and major investments."

Liu Yang thought for a moment.

"Then when a subsidiary makes money, how is it divided?"

Lin Jiawen chimed in from beside him.

"According to share ratio. Fifty‑one percent goes to the group, forty‑nine percent stays with the subsidiary. The retained portion can be reinvested or used to give bonuses to employees."

Liu Yang nodded.

"That's clear."

Fang Wenshan raised his hand again.

"President Li, if this gets out, the media will start speculating wildly."

Li Yaozong looked at him.

"Guess what?"

Fang Wenshan thought for a moment.

"They might guess that Wanshang is failing, that we're cashing out and fleeing, or that there's an internal problem."

Li Yaozong smiled.

"Then let them guess."

He stood up and walked to the window.

"When the three subsidiaries became independent, they also guessed. After nine months of guessing, what did they come up with?"

He turned around.

"They guessed that Phoenix Chat was valued at fifty billion, that Wanxiang Live broke a hundred billion in a single quarter, and that Wanxiang Video's membership quadrupled."

He looked at Fang Wenshan.

"This time is the same. Let them guess. The more aggressive the speculation, the higher the attention. The higher the attention, the higher the starting point for these subsidiaries."

Fang Wenshan nodded.

"Understood."

Lin Jiawen raised his hand.

"President Li, there's another question."

"Go ahead."

"How long will it take to spin off all twenty businesses?"

Wang Bo calculated.

"One by one, even at the fastest it takes a year."

Lin Jiawen nodded.

"Within a year, each subsidiary must re‑register, open new bank accounts, and re‑sign contracts. The workload is huge."

He looked at Li Yaozong.

"On the banking side, we need to prepare in advance."

Li Yaozong nodded.

"You handle the preparation. If we need more staff, add them. If we need overtime pay, provide it."

Lin Jiawen nodded.

The meeting ran from 2 p. m. to 5 p. m.

In three hours they divided all twenty businesses.

Wanshang Sports, Wanshang Home Appliances, Wanshang Real Estate, Wanshang Retail, Wanshang Hotel, Wanshang Mining…

For each business, a person in charge was assigned, a timeline set, and boundaries clarified.

Li Yaozong, after hearing everyone's remarks, stood up.

"Starting tomorrow, we'll spin them off one by one."

He looked at Wang Bo.

"You take the lead and coordinate with each department. If any issues arise, come to me at any time."

Wang Bo nodded.

He then looked at Fang Wenshan.

"We don't need to proactively tell the media. If anyone asks, say it's a normal adjustment."

Fang Wanshan nodded.

He finally scanned the room.

"Any other questions?"

No one spoke.

"Meeting adjourned."

A month later, Wanshang Sports became independent first.

Two months later, Wanshang Home Appliances became independent.

Three months later, Wanshang Real Estate became independent.

Four months later, Wanshang Retail became independent.

Five months later, Wanshang Hotel became independent.

Six months later, Wanshang Mining became independent.

A year later, all twenty subsidiaries were listed.

Each new sign was hung in a different part of Shenzhen. Wanshang Sports in Futian, Wanshang Home Appliances in Longgang, Wanshang Real Estate in Nanshan, Wanshang Retail in Luohu, Wanshang Hotel in Bao'an, Wanshang Mining in …

Li Yaozong did not attend any of the sign‑unveiling ceremonies.

He simply stood every day in front of the thirty‑eighth‑floor window, watching the city in every direction.

There, the children he had personally dispatched were.

On the same day a year later, Wang Bo sent a report.

Twenty subsidiaries, first‑year performance.

Wanshang Sports, revenue grew by forty‑seven percent.

Wanshang Home Appliances, revenue grew by thirty‑two percent.

Wanshang Real Estate, revenue grew by fifty‑eight percent.

Wanshang Retail, revenue grew by twenty‑three percent.

Wanshang Hotel, revenue grew by forty‑one percent.

Wanshang Mining, revenue grew by seventeen percent.

All twenty combined, total revenue increased by thirty‑seven percent over the previous year.

Wang Bo closed the report.

"President Li, the allocation was correct."

Li Yaozong stared at the report and remained silent for a long time.

Then he lifted his head.

"What about the automotive side?"

Wang Bo turned to another page.

"Automobile sales rose twenty‑eight percent, mobile phone sales rose fifteen percent, bank profits rose twenty‑one percent, the R&D center produced thirty‑seven new patents, and the institute's graphene project entered the pilot‑scale stage."

He looked at Li Yaozong.

"Not a single core business was lost."

At seven p. m., Li Yaozong stood alone by the window.

In the distance, the city lights merged into a sea. Futian, Longgang, Nanshan, Luohu, Bao'an… In every direction, the children he had dispatched were.

They were no longer the chopsticks bound in his hand.

They were seeds scattered across the land, taking root and sprouting on their own.

He recalled a sentence his father had once said.

"If the family is discordant, all affairs falter. If the business is not divided, ten thousand horses fall silent."

At that time he did not fully understand.

Now he understands.