Chapter 1098 - Frustrated Sun Zhengyi
Chapter 1098 – Frustrated Sun Zhengyi
Feng Yu is satisfied after hearing Sun Lijie’s report on the company’s current and future profits. About half of the company’s investments had generated high returns, and the remaining half is still ongoing.
Tai Hua Consultancy had stringent checks on the companies asking them for investments. Not all internet companies had received funding from Tai Hua Consultancy, especially the field where Tai Hua Consultancy had invested in.
This is because Tai Hua Consultancy firmly believes that the companies they invested in will reach greater heights. Other companies in the same field will have no chance to compete with them.
What if Tai Hua Consultancy had invested in companies that had overlapping businesses in the same field? How is Tai Hua Consultancy going to help those companies?
If Tai Hua Consultancy supported both companies, it would be competing among themselves. But if Tai Hua Consultancy does not support them, the companies might be obsolete.
At this time, Softbank’s Sun Zhengyi started to invest in those companies. He wants to replicate the internet boom like the US.
Although Sun Zhengyi had not managed to invest in the companies he wanted, he had invested in several smaller companies. He will help them get listed.
It’s hard for these smaller companies to get listed on Nasdaq or Tokyo Stock Exchange. Still, it should not be a problem for them to get listed on China stock exchange. China still has not implemented strict requirements to get listed, and there are many loopholes to exploit.
After the companies get listed, the companies can push up their companies’ share prices by selling their internet concepts and future plans. After one year, they will slowly sell off their shares and profit from there.
Everything had been going smoothly. At the end of last year, Softbank managed to get two companies listed, and the share prices shot up immediately.
But after the Nasdaq crash at the start of this year, China’s internet stocks also start to fall. The main reason is that the investors had heard what Feng Yu said. “How can these companies be worth so much?! They must be overvalued!”
The companies that Softbank is pushing to get listed were ordered to stop. Those two companies listed last year were investigated. They were found to have manipulated their share prices and were suspended. When trading resumes, their share prices will plunge.
Sun Zhengyi will not be able to cash out his investments. It’s the investors who had bought the companies’ shares earlier that had made some money. Those that invested later also had their money trapped.
The companies Sun Zhengyi wanted to invest, were snatched away by Feng Yu’s company. The companies he invested in were disrupted by what Feng Yu said. Sun Zhengyi is furious with Feng Yu.
You earn your money, and I earn mine. We are not interfering with each other.
You had already snatched away my prospective customers, what else do you want?!
Sun Zhengyi had wanted to use the competition between the three Chinese web portals and get a bargain from it.
But the Bosses of those three web portals know each other and have a healthy competition. All of them are focusing on getting users and are reporting the news. But Sina is now focusing on their Micro-blogging feature and overseas news. NetEase is focusing on mailbox and game distribution. Just the game distribution business, NetEase managed to break even this year, while Sohu is focusing on online forums and videos. Almost all netizens in China will have a Sohu account!
Almost everything is discussed on the online forums.
The staff in companies with internet connections will check the latest news on Sina before logging in to NetEase mailbox for their emails. After that, they will log into Sohu’s online forum secretly while working.
Everyone will check the forums every once in a while. There might be some discussions that interest them appearing anytime.
What if someone is looking for you? It’s fine. They will contact you through QQ. Like Wind and Rain Electronics, almost all big companies in China are encouraging paperless offices to save costs!
Feng Yu had only told his companies to use QQ to pass messages within the company and stop paper wastage. But he did not expect his companies to implement it to this extend.
Some important documents like drawings, contracts, etc. must still be printed.
But the few internet companies Feng Yu invested in had entered all netizens’ life in China. It’s impossible for any Chinese who goes online to not know about these three companies.
The internet is developing rapidly, and PCs are getting common in China.
But Sun Zhengyi’s investment losses are increasing.
Many of the companies Sun Zhengyi invested in finished spending their funds even before they got listed. These companies contacted Sun Zhengyi for more investments in exchange for shares.
Sun Zhengyi realized these companies had spent their funds recklessly.
I had invested a sum of money in your company. The first thing you do is renovate your office, buy cars for all the company’s executives, increase the salaries of all developers, etc.
But where are the results you promised me?! You all had not fulfilled your claims and had not accomplished anything. All you did was to paint a beautiful picture to get me to invest!
You all had not achieved anything and used the invested money on yourselves. Are you treating me like an idiot?!
Sun Zhengyi scolded his subordinate, who had negotiated with those companies, to vent his anger.
But that subordinate felt wronged. We would have invested in Sina successfully if you had not demanded more shares back then.
I had rejected some of these companies, but you are the one who asked me to take the risk. You said that the internet is booming in China, and we can make high profits through these companies. That’s why these companies passed the selection criteria, and now you are blaming me for these losses?!
But there is nothing this subordinate can do, as Sun Zhengyi is his Boss.
“Go! Think of a way to stabilize those two stocks and get these two companies listed. If not, our investments in China will be gone.” Sun Zhengyi threw a document file on the floor.
The subordinate quickly picks up the file and left Sun Zhengyi’s office.
Sun Zhengyi had been in a bad mood after he failed to invest in those Chinese internet companies. Maybe it is also because Yahoo’s share prices had crashed recently.
But based on the agreements, Sun Zhengyi cannot sell their internet companies’ shares within the next few years. If not, the company will not suffer so many losses.
Sun Zhengyi is facilitating Yahoo to enter China. With Yahoo’s experience in the US, they will surely be successful after they enter China.
Those three Chinese web portals will be defeated by Yahoo! They will be defeated by Softbank!