Chapter 63: Hua Yongming's Decision
Inside his study, Hua Yongming spoke slowly, "I discussed the 10 billion yuan investment with your elder brother earlier today. His suggestion is that Huayang Group should secretly take the risk of securing this large sum for Fang Hong, using internal information as support. At the same time, Huayang's black-market operations would follow Fang Hong's strategy."
Pausing for a moment, Hua Yongming turned his gaze toward Hua Yu and asked, "What do you think?"
"Father, with all due respect, elder brother underestimates Fang Hong by coming up with such a naive plan," Hua Yu responded without hesitation. He continued, "Father, do you think Fang Hong is a fool? I believe you don't, otherwise, you wouldn't have invested 1 billion yuan in him."
Hua Yongming remained concise. "Go on."
After contemplating for a moment, Hua Yu analyzed, "Even if we execute this plan carefully and manage to deceive him this time, what about the next time? And the time after that? How much profit can we actually generate by tricking him once? At most, our net profit would be between 300 million to 500 million yuan, which might seem substantial. But if we collaborate with Fang Hong, leveraging the 1 billion yuan we've already invested, our potential earnings could reach 30 to 50 billion yuan in the future. From this perspective, attempting to manipulate him would be a foolish and unnecessary risk."
"Since we've already built a good relationship with Fang Hong, we should consolidate our position and expand upon these favorable outcomes to secure greater long-term returns. Although most of the personnel at Qunxing Capital are from the Huayang faction that I brought in, it would be a mistake to assume we can simply remove him from power. The fact that he isn't worried at all suggests that he has his own contingency plans and hidden advantages."
"The reality is quite clear. Qunxing Capital is actually controlled by Zhenxing and Shenxing, with their General Partners (GPs) held by Xingxing, a company that Fang Hong owns 100% of. This structure means that Qunxing Capital is under his absolute control, and if he chooses to, he can convene an emergency shareholders' meeting at any moment and replace all directors and executives of the company."
"By appointing me as the head of Qunxing Capital, Fang Hong is essentially using Huayang's resources to build his own empire. And he has succeeded. Just ten days ago, Qunxing Capital was nothing more than an empty shell, but now, it is fully operational—freely benefiting from Huayang's wealth, influence, and intangible assets."
"Even though we are aware of his 'borrow a chicken to lay an egg' strategy, we have no choice but to comply. Since Huayang has already invested 1 billion yuan, wouldn't we want to supervise the investment? And to do so, we must continue supporting his expansion. I have to admit, his approach is truly brilliant."
Hua Yu paused momentarily before continuing, "There is another crucial factor—the general manager of Qunxing Capital does not belong to the Huayang faction. I observed this individual closely, and although his abilities are not outstanding, I realized that he is a devoted follower of Fang Hong."
At this, Hua Yongming narrowed his eyes and said in a deep voice, "Fang Hong placed this man in that position to handle potential crises. If necessary, he can remove you and the other key executives from Qunxing Capital at any time, allowing this individual, Cao Chenghui, to take over. His competence may be average, but his loyalty to Fang Hong is unquestionable. And in critical moments, loyalty outweighs capability. Even if he lacks intelligence, his unwavering devotion makes him invaluable."
Hua Yu immediately agreed. "I had the same thought, Father. In fact, I believe Fang Hong intentionally placed Cao Chenghui there as a subtle warning and a form of deterrence against us."
After a long silence, Hua Yongming finally spoke. "That is precisely why I assigned you to oversee Qunxing. Your elder brothers still lack the foresight and understanding needed to handle someone like Fang Hong. If they were to go up against him, they would lose—completely unaware that they've been outmaneuvered."
Ever since his first meeting with Fang Hong, Hua Yongming had never once regarded him as just a 20-year-old university student. His youthful appearance masked a level of cunning and strategic brilliance that rivaled even the most seasoned veterans of the business world.
Hua Yongming had spent considerable time investigating Fang Hong's background, yet he still couldn't comprehend how someone from such an ordinary upbringing could possess this level of intelligence. The data didn't add up, and by all logical standards, someone like him shouldn't exist.
But in the face of undeniable reality, the only conclusion left was that Fang Hong defied conventional logic.
At that moment, Hua Yu asked, "Father, what is your final decision?"
Fang Hong had given a strict deadline—he needed 10 billion yuan in liquid capital before the end of the year. It was already November 9th, meaning they had less than two months remaining.
Securing 10 billion yuan in liquid capital within such a short period carried immense risks. However, the potential return on investment was staggering. This was a gamble where high risk and high reward coexisted—a test of a decision-maker's courage.
After a long moment of deliberation, Hua Yongming made his choice.
"Huayang Group will proceed. We will provide Fang Hong with an advance of 10 billion yuan in liquidity through a bridge loan. However, we will not sign an agreement with Qunxing Capital directly. Instead, Fang Hong himself must personally pledge his future beneficiary rights to us."
If they signed the agreement with Qunxing Capital, Fang Hong would bear no personal responsibility—and Hua Yongming was well aware of how the company's control structure shielded him from liabilities.
Thus, to ensure the security of the investment, they needed to anchor the deal directly to Fang Hong himself, making sure that he couldn't escape accountability.
Hua Yongming's mind worked quickly as he murmured to himself, "With Fang Hong's stock trading skills, he can generate at least 300 million yuan in profits annually. If we use this as a benchmark, it would take 33 years for him to earn 10 billion yuan. That means we can structure this deal so that he pledges his future earnings for the next 33 years to secure the loan."
He then outlined the final terms.
"The pledge period will be one year, with an annual interest rate of 36%. If, by the end of the term, his accounts contain sufficient funds to repay the principal and interest, he can extend the agreement for another year. If he accepts these terms, Huayang Group will guarantee the funds for him."
Huayang Group was no stranger to high-interest lending. Though the company had diversified, its private lending business still accounted for 8% of total revenue—down from 25% five years ago.
Calculating at an annual interest rate of 36%, the projected profits from this loan would be:
3.6 billion yuan in one year
8.5 billion yuan in two years
15.1 billion yuan in three years
36.5 billion yuan in five years
Hua Yu nodded. "Understood. I will discuss this with him soon."
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