Chapter 74: 072 Birth

Yu Xing went to sleep at 1:30 in the morning. He thought that after finalizing the intention and drinking beer, waking up would be a sunny morning, but unexpectedly, he opened his eyes at only 5 o'clock.

He was confused for a few minutes, pulled open the curtains, and only saw the faint morning light outside, but he had no sleepiness after getting back into bed.

Three and a half hours of sleep.

Yu Xing rubbed his face, got up to pee, and after a simple wash, brewed a cup of instant coffee. Looking out the window again, there were already elderly people exercising early in the morning on the street.

He drank the very bad coffee while looking at the street scene in the early morning and thinking.

For the past three months, except for that trip home, his mind had been pondering company matters almost every moment. Because they were all college students, even with Zhong Zhiling, Lu Haiying, and them, there were always strange things that needed to be asked.

Yu Xing felt at this moment that the mental fatigue brought by that high-load operation was even more unforgettable than this short sleep.

With the stimulation of high commissions and the opening of part-time jobs, Gui'ai. com, don't look at the fact that it hadn't been established for long, but the number of full-time and part-time employees was nearly 500. This was still after a wave of people left in August.

Five cities, this and that, right and wrong...

Yu Xing lit a cigarette, feeling that an effective management mechanism and a streamlined team could make his mood for doing things a bit happier.

His thoughts moved, and he couldn't help but think of this short-selling matter again.

Yu Xing's shallow understanding of short-selling almost all came from reflections after the financial crisis such as "The Big Short," as well as companies like Muddy Waters that were famous in China for sniping Chinese concept stocks.

Muddy Waters shouldn't have been established yet. Its name came from the Chinese "fishing in troubled waters." The founder was an American young man who had worked in investment banks and law firms, and had also worked in a foreign law firm in Shanghai, and was also operating a warehousing business and a website.

Later, the warehousing business was almost ruined, and the rent was embezzled by the park manager.

And the reason for establishing Muddy Waters was because he helped research a Chinese company and discovered fraud, so he simply went all the way and worked with his father, who had experience in this area, to short the company in return.

This short-selling caused the company's stock price to fall by more than half, and the founder also obtained a considerable profit of 6,000 USD!

6,000 USD, more than 40,000 Chinese currency, not a fat profit.

Yu Xing had a deep impression of this detail, but he couldn't remember the name of the first company shorted by Muddy Waters for a while. Fortunately, the name Jiang Nanchun was equally impressive.

The scale of Muddy Waters was not large. A typical one was the Citron company of a similar nature. It was said that it was just one person, only temporarily hiring 2 to 10 people to work when investigating different projects.

Yu Xing's understanding of Citron company came from its questioning of his former boss's company. Citron shorted Evergrande in Xiangjiang stocks in 2012, and then was sued, and was investigated by the Xiangjiang Securities and Futures Commission (SFC) in 2014. Finally, it was Citron's defeat in 2016, ruling that it was not allowed to buy or sell securities in Xiangjiang for 5 years.

Of course, that questioning was confirmed in the not-too-distant uproar, and a sentence in the investigation report was widely circulated.

——"Evergrande's ending is already doomed; what cannot be determined is just the time."

As an employee, Yu Xing didn't think his evaluation of the same thing at different stages could be so completely different, so he remembered it fresh and still felt mixed emotions when thinking back to this day.

Looking at it this way, as long as the core figure of the institution is established, it indeed doesn't need too many people.

And, it also needs enough safety.

Under the premise of safety, using suitable ideas plus adaptive tools, this work might be completed not badly.

The short-selling institution needs to operate separately from the mainland company, and itself needs to have multiple vests. Bai Xiaosheng can play an auxiliary role in certain public opinion moments, but it cannot always work for short-selling, and short-selling itself will not be that frequent.

Targets can be picked from companies in Xiangjiang stocks and US stocks that can be investigated, which itself belongs to legal and compliant operations.

Yu Xing drank half a cup of coffee, remembering the words Liu Wan Ying said herself: the project is a tool, and people are also tools, and the effect of these combined... not to mention not fat, could it bring some small fat profits?

The city outline outside the window became clearer and clearer in the morning light, and the pedestrians and vehicles on the road gradually increased.

Yu Xing looked at this scene. Perhaps it was the fatigue of sleep re-entangling his nerves, or perhaps it was the refractory period after the company sale intention was finalized. A thought buried in the bottom of his heart quietly surfaced: Why was it him? Why was it him who had such a dream?

Is there really a mandate of heaven?

He looked at the morning glow on the horizon and shook his head after a long time, really unable to grasp any mandate of heaven.

Yu Xing drank the remaining coffee in one breath. Since he couldn't grasp his own, let those companies that were picked and selected face their own mandate of heaven.

He went down to have a simple breakfast, then peacefully made up for two hours of sleep, and felt much more energetic when he woke up again, and the time was just right.

"Brother Xing, let's go eat." Zhong Zhiling called.

"You guys go, I've eaten." Yu Xing turned on the speakerphone and said casually, "I want to write something. You guys eat slowly. Don't be in a hurry all morning; Zhenai. com shouldn't be urging either."

The phone hung up, and the financial report of Focus Media from last year and the Q2 financial report released in August were opened on the notebook.

Focus's performance in the capital market before this year was actually quite outstanding, and it was also the first Chinese new media company to be included in the US NASDAQ 100 Index, and its head, Jiang Nanchun, even promoted many times that his own company was the media group second only to CCTV.

Focus's stock price reached its peak in November last year, as high as 65.1 USD, and its market value was surprisingly close to 8 billion USD. But this year, affected by multiple factors, and recently encountering the financial crisis, the stock price had fallen by more than 70% and was currently hovering at 20+ USD.

Yu Xing took out this reason for the sharp drop in stock price when talking to Liu Wan Ying last night, believing that from the perspective of human nature, it was difficult to resist the desire to toss in this situation.

Nearly 8 billion USD more than half a year ago, and now only 2.5 billion USD. If it were him, he would have to think of ways to revitalize the stock price.

Of course, this reason from the perspective of human heart was just put out, and company governance cannot be bound like this.

Therefore, Yu Xing intended to use a stupid method to verify whether Focus Media's core business was down-to-earth.

Focus Media, to put it bluntly, does advertising. It installs LCD screens in many business buildings and apartment elevators across the country, and then plays advertisements for various brands on them.

Its Q2 financial report showed that the total revenue was 211 million USD, a year-on-year increase of 106.8%, and the net profit was 36.13 million USD, and nearly 60% of the revenue here came from the LCD screen advertising business.

At the same time, the number of LCD screens in Focus Media's financial report was 121,000.

This was the basic data of the core business that Yu Xing thought of.

The stupid method he thought of was to first check whether this number was true and whether there was no moisture.

As for how to check...

Yu Xing intended to use his fingers to count.

121,000 billboards, right? I will hire a total of 30 college students in various cities, averaging 4,033 tasks per person, and then require them to count clearly within a month, which is counting 134 screens every day.

Each college student's part-time salary is 5,000 yuan, and the total labor cost is 150,000.

As for whether the number reported by each college student is accurate and whether his work is in place...

Errors are unavoidable.

On the one hand, it can be compared by telling the part-time college students that there are other people doing the same work, and the final numbers will be compared. On the other hand, Yu Xing intended to let people ask Focus Media about the number of screens in different cities in the name of placing advertisements, pretending to consider the advertising effect.

Anyway, as long as the data is aggregated and errors are eliminated, it should be easy to distinguish whether there is moisture, and multi-dimensional comparisons can also be made with data obtained from various angles.

If even this basic data has problems, the revenue in the financial report is likely to be mismatched or forged.

A lie always needs multiple lies to round it off. As long as it is determined that an important data has a problem, the subsequent financial report analysis will be handed over to professionals like Liu Wan Ying. If the basic data of this research has no problems...

Then come again in a year or a year and a half.

Flies don't bite seamless eggs.

The problem is, it can almost be determined that this is a seamless egg, but it is not known what stage it is in.

Already have a seam? Having a seam? Preparing to have a seam?

Anyway, the first one is it.

With intention calculating unintentional, there is no reason to be able to cover up the loopholes seamlessly. What's more, according to common sense, it shouldn't be thought that someone would have nothing to do and count the ten-thousand-level numbers clearly, right?

Yu Xing named this research on basic and important data "Ding Feng Spirit."

When the phone rang again, the document on the notebook was also more than half completed.

Yu Xing didn't write it too clearly, as long as he could understand it himself. It just so happened that he could find someone to get busy with this matter during these three months at Zhenai. com.

However, at the moment he closed the notebook, he still felt some emotion. Even if Focus Media's stock price had fallen by more than 70% now, its market value converted into Chinese currency was nearly 20 billion...

Such a volume was no different from a mountain peak compared to the institution that hadn't been built yet.

Can it really be shaken?

It should be able to.

And, there are lower peaks after this peak.

On the way to reunite with Zhong Zhiling and them, a flash of inspiration suddenly flashed in his heart, and he quickly sent a text message to Liu Wan Ying: How about naming the institution 'Guo Shanfeng'?

Liu Wan Ying found it funny after receiving the text message, thought for a while, and replied: Very good, very meaningful, very fierce, very vicious.

She sent a second text message: Are you so sure Focus has a problem?

Yu Xing replied: Check and you will know. There will be data by the end of the year at the latest. Let's analyze it together and divide the winner and loser. Also, vicious?

Liu Wan Ying was a bit strange: Isn't Guo Shanfeng vicious? Isn't it the King Cobra you are talking about?

Only after seeing this content did Yu Xing quickly use his mobile phone to check. The common name of the King Cobra is "Guo Shanfeng," "Guo Shanfeng," "Shan Wan She," "Guo Shan Wu"...

Uh, indeed vicious!

But this seems to fit well with short-selling...

Could this also be a mandate of heaven in the dark?

Even, now there is an English name for the institution—kingcobraresearch.

King Cobra Research or Guo Shanfeng Research Company.

After a long time, Yu Xing replied to Liu Wan Ying: Then let's use this name, how about it?

Liu Wan Ying: Your company, whatever you want.

Yu Xing felt it was okay, how the meaning was... considered not bad.

The company name was there, the first target was there, the research strategy was there, it just depended on the start in the remaining time of the second half of the year.

"Today we have two things: one is to determine the final investment and proportion, and the second is to determine the follow-up process with Zhenai. com." After reuniting with everyone, Yu Xing suppressed the viciousness that was itching in his heart and mentioned the business at hand.

He asked the second and third in command: "Did you guys discuss it well last night?"

Lu Haiying and Zhong Zhiling looked at each other and replied firmly: "Senior Brother, let's round it up together, 400,000."

Yu Xing smiled: "This is all-in."

The 2.635 million from the company sale, excluding the fraction, the two combined holding 15% can get 390,000. Now opening their mouths is 400,000, which is filling in part of the salary saved over three months to round it up.

Lu Haiying nodded: "Yes, as long as Senior Brother doesn't have other plans, we will invest like this."

Yu Xing calculated silently in his heart and pondered: "Then I will also take a round number, 1 million. Liu Wan Ying's money will be calculated according to investment after our company's shares are clear. That's not urgent."

Song Yufeng's 120,000 was confirmed, which meant that Bai Xiaosheng could raise 1.52 million in funds.

Yu Xing opened his mouth again at this time: "Zhenai. com acquires shares, this money needs to pay taxes, but this transfer is done from the Xiangjiang company, it seems to be paying withholding income tax at a 10% tax rate. Ask Zhenai. com about the specifics. This tax money will be paid with the option share we set up before. Yu Xing doesn't plan to take this advantage at this time."

The shareholder of the mainland Gui'ai. com company is Xiangjiang Gui'ai. com. The setting of the talent option was 10% at the beginning, which just happens to be able to pay taxes.

Zhong Zhiling and Lu Haiying didn't think of this at all, and nodded one after another. Senior Brother handles things openly.

The shareholding ratio is initially clear. If calculated only according to the invested funds, Bai Xiaosheng company sets up 10% options, the total value of the company is 1.68889 million, Yu Xing holds 59.21%, Lu Haiying and the two combined hold 23.68%, and Song Yufeng holds 7.11%.

"Senior Brother, as a director, I propose that in addition to the 10% talent option, take out another 10% as your incentive shares." Lu Haiying said at this time, "Zhilin and I have already discussed it. We are all sincere."

Yu Xing nodded slightly, not humble, and looked at Song Yufeng.

Song Yufeng said without hesitation: "Brother Xing, I absolutely have no opinion!"

Calculated this way, the total value of the company became 1.9 million. Yu Xing's 1 million investment accounted for 52.63%, plus an additional 10% incentive, holding a total of 62.63%, while Lu Haiying and the two combined held 21.05%, and Song Yufeng became 6.32%.

"Alright, I accept it. However, this 10%, to be honest, if I really take it all, I don't feel good in my heart." Yu Xing smiled, "We are starting anew together, we must have a good start. I accept this 10%, and take out 2% from it for Xiaoying, 1.5% for Zhiling, and 0.5% for Brother Feng."

Seeing that these three were about to speak, he immediately said: "This also counts as a small board meeting. I will exercise the power of a major shareholder once, and this matter is settled."

Yu Xing believed that his Junior Brother and Junior Sister were sincerely taking out 10%, and didn't think he was unqualified to accept it, but things could be more beautiful.

Unlike Gui'ai. com, it started in a hurry, it was stimulated to move forward, and it was to sell itself. The Bai Xiaosheng project could be longer, so it could lay a better foundation from the beginning.

Zhong Zhiling and Lu Haiying looked at each other, understood Senior Brother's intention, and accepted it just like Yu Xing did before.

Song Yufeng still wanted to be humble.

"Alright, Brother Feng has high style, then this 0.5% won't be given to you." Yu Xing was willing to fulfill his integrity.

"Hey, hey, Brother Xing, I was wrong, I was wrong, I want it, I want it." Song Yufeng quickly took off his posture and quickly admitted his mistake.

Yu Xing gave an "um," smiling but not smiling: "Then it's settled."

In the end, he held 58.63%, Zhong Zhiling and Lu Haiying held 24.55%, and Song Yufeng held 6.82%.

With the ratio set like this, everyone was exceptionally happy in their hearts.

Especially Song Yufeng, although according to the value of the actual money taken, this 0.5% is equivalent to 7,600 yuan, although this is less than the two, this proves... following Brother Xing is no problem!

Brother Xing eats meat, and I can drink a small sip of soup from the side, that's fine too!

Song Yufeng now had a motivated thought in his heart: must make the company bigger and stronger, and create brilliance!

As long as he works hard, the shares in his hand can have higher and higher value!

For this, even if... even if he goes in!

Song Yufeng didn't have leisure last night. He found two value positionings for himself: one is to closely surround Brother Xing and provide him with emotional value, and the other is to hold his head high and stand up to carry things for the company!

Privately, be the boss's confidant; publicly, be the company's backbone!

(End of chapter) ===== CHAPTER 75 =====