Reborn in 08, a heretical cultivator starting a business

Chapter 149 Cash Flow Game, the Truth Comes to Light!

"Guo An, I'm entrusting the procurement of maternal and infant products to you!" Chairman Liu said.

"Don't worry, Chairman, I will definitely use 50 million to secure the largest quantity of goods!"

"JD.com absolutely has to be a part of this booming trend in the mother and baby product category!"

As Guo An spoke, he felt a mixture of envy, jealousy, and resentment towards YouTuan International.

JD.com purchases 70 million yuan worth of goods, and 70% of the payment must be prepaid. 50 million yuan is paid in advance, and the remaining 20 million yuan must be settled upon delivery.

And what about U-Tuan International?

Purchasing goods worth 10 billion only requires a prepayment of 2 million, or even 1.5 million.

As YouTuan International's transaction volume in the maternal and infant category continues to climb, even top brands such as Wyeth, Mead Johnson, Dumex, and Nestle only require a 20% prepayment.

The remaining payments will be settled on a T+30 basis.

Second-tier international brands are even more ruthless, requiring only a 1.5% or even 1% prepayment.

They're begging U-Tuan International to help them sell their goods!
It's true what they say, comparisons are odious.

What's worse is that JD.com had to scrimp and save to come up with 50 million yuan.

The outstanding payments held by YouTuan International under the T+30 system amount to two to three billion yuan, and they can easily extract two hundred million yuan.

There's no other reason than that to acquire a billion-dollar maternal and infant product, you only need to prepay 150 million, and once it's sold, it will be worth 2 billion, with the settlement only taking place 30 days later.

Including shipping and logistics, and the time it takes for consumers to confirm receipt, this money can remain tied up for 35-45 days.

All of this money is deposited into U-Tuan International's account, becoming U-Tuan International's cash flow, which can be used to continue purchasing other products.

As a result, U-Tuan International, U-Tuan Group Buying, and Vipshop are all flush with cash.

Not only Guo An felt envious and jealous, but Chairman Liu also gritted his teeth in hatred.

Who the hell would have thought that this could be done?
By perfectly taking over the three companies' financial collapse, Future Technology directly earned over a billion!

If it weren't for the collapse of Sanniu and the import of maternal and infant products, Future Technology probably wouldn't have been able to come up with even 800 million.

But because of San Niu's financial crisis and the import of maternal and infant products, Future Technology was able to come up with 1.8 billion or even 2 billion!
All I can say is that the collapse of Sanniu International has blown YouTuan International to smithereens.

As a result, YouTuan Technology, which was still seeking investment from Tencent in September, became incredibly wealthy by November and started making external investments!

The concept of a "hot trend" is truly wondrous.

That's why Chairman Liu wanted to ride the wave of the imported maternal and infant product market.

They also squeezed out 5000 million to purchase goods.

Therefore, Chairman Liu took several bottles of his treasured Moutai to the investment circle and went drinking with some bigwigs.

The wine was good, and the food was excellent.

But when it came time to secure investment, even the big names in the investment world started complaining:
"Chairman Liu, to be honest, I'm really unlucky. When the financial crisis broke out, my assets were reduced to only 30%. My liabilities didn't decrease at all, and I was on the verge of bankruptcy."

"Brother Liu, I'm afraid there's nothing I can do to help. I'm even hoping for a white knight to come and save my company. If this continues, I'm doomed."

"Don't even mention it! Foreign trade has completely come to a standstill, and goods are piling up at the port with nobody wanting them. To pay my employees' salaries, I even sold my house!"

After a series of setbacks, Chairman Liu approached his elder brother, Sun Shengyuan, raised his glass, and drank it all in one gulp.

"Brother Sun, you have to help me with this. I heard you cashed out some Midea stock; could you lend me some to tide me over?"

Sun Shengyuan sighed: "Brother, don't even mention it. I bought 10 million shares of Midea stock at 15 yuan per share when it was at rock bottom, costing 150 million yuan. I sold them a couple of days ago for 55 million yuan, 5.5 yuan per share, hahaha, isn't that hilarious?"

"But there's nothing we can do. The financial crisis seems endless, and every industry is struggling. If we can't sell it for 5.5 yuan now, it might be 5 yuan next month. In January, nobody will even want it for 5 yuan."

"Just then, someone wanted to take over, and the company was struggling to make ends meet and needed money, so I had no choice but to grit my teeth and sell everything!"

"The money arrived yesterday morning and was used to cover the shortfall in the afternoon. Now there's not a penny left."

"But I've made it ashore, and I'm free of debt."

"All those years of hard work have been wiped out in this one wave."

"Hey!"

Upon hearing this, Chairman Liu also fell silent.

What can be said?
Sun Shengyuan is not an individual, but a true reflection of the many entrepreneurs who suffered a double blow to foreign trade and stock prices during the financial crisis.

For those who invest in real estate, it's actually not too bad; the value has only depreciated by 20% to 30%.

Of those who invested in stocks, only 20-30% remained.

Those in foreign trade are the worst off; everything has collapsed, and they can't sell their goods.

Even if the items have already been sold, we can't get the final payment back; the other party's boss has gone bankrupt.

The entire operation was a complete rout.

After looking around, Chairman Liu still couldn't find the funds.

Left with no other choice, he got up the next day and went to Wall Street to try his luck.

Similar scenes are unfolding across the country and even around the world.

Future Technology has seized the opportunity presented by the booming maternal and infant product category, and with YouTuan International as its cash cow, it has nothing to fear.

But other companies are in dire straits.

In order to weather the crisis, we have no choice but to increase revenue and cut costs.

However, during the global economic crisis, assets may shrink by 70%, but debts will not!

This directly resulted in 99% of businesses being dirt poor.

Everyone is thinking about increasing revenue and reducing expenditure.

That means they can't find new sources of funding or new funding items.

If open source isn't an option, then cost-cutting is the only option.

The various methods employed by different companies are also quite diverse.

Renren.com is one of them.

Employee Hong Yan stood on the rooftop, smoking a cigarette.
"Damn it, Renren.com is really not working anymore. They've even stopped giving out the 15 yuan meal allowance."

"That's right! Baidu has a cafeteria, and look at us, we have neither a cafeteria nor a coffee shop. Now, we've even lost our meal allowance. Damn it!"

Zhou Lei, on the other side, was equally furious.

"Don't even mention Baidu. I heard that the food standards at Baidu's cafeteria have dropped drastically. The quality of the food has been greatly reduced, and many employee benefits have been canceled."

"It seems that Baidu is also having a tough time."

"Who can escape unscathed from the global financial crisis? Except for Vipshop."

"Damn, Vipshop is really lucrative. Although they don't have a cafeteria, they still provide a 25 yuan meal allowance. Overtime workers not only get a dinner allowance but also a late-night snack."

"Yes, they also have a coffee room as standard, and it's branded coffee. Unlike our Renren.com, which only has a water dispenser."

"That's bad enough, but the most disgusting thing is the performance evaluation system."

"Just thinking about it makes me furious. To cut costs, the boss keeps setting performance targets higher and higher, so we can't even get performance bonuses. It's like a disguised pay cut!"

"Yes, directly cutting salaries by 3000 is definitely unacceptable to employees. But they know how to play the game. They raise performance requirements. If we don't get the 3000 performance bonus, it's because the employees are incompetent and it has nothing to do with the company. They're shameless."

"Sigh, this is tough. It seems the company is really out of money."

"Exactly! If they had the money, why would the campus store, which was originally scheduled to launch in October, be delayed until November?"

"Is the campus mall finally going to launch? That's great! Hopefully, once it goes live, the company will have more money, and our lives will be a little easier. At least we'll be able to get our meal allowances back."

"Who knows? I don't think it'll work."

"What? You're in charge of purchasing for the school's online store, and you don't even have a good opinion of it?"

"If it were any other year, things would be alright, but this year... it's going to be tough!"

Hong Yan exhaled a smoke ring, then hesitated, as if he wanted to say something but stopped himself.

At that moment, a beautiful figure appeared at the rooftop entrance and coughed lightly:
"Manager Hong, the boss requests your presence." "Secretary Liu, I'm coming right now!"

Hong Yan immediately stubbed out his cigarette, caught up with him, and couldn't help but ask:
"I wonder what the boss wants to talk to me about? Is it good news or bad news?"

But Secretary Liu didn't respond at all.

Such a distant attitude made Hong Yan's heart skip a beat, and she had a bad feeling.

With a heavy heart, Hong Yan arrived at the office, and his expression immediately changed drastically.

Inside the office, not only Chairman Sun Yizhou, but also Xiaonei.com Vice President Dai Hede were present.

He Yan, Head of the Audit Department!
Joint trial by the three judicial authorities!

"Could it be that my secret has been exposed?!"

Hong Yan's heart skipped a beat, and his ominous premonition grew stronger.

Secretary Liu's reaction!

The arrival of He Yan, the head of the audit department!

This guy is in charge of internal auditing on the school's intranet, reviewing all departments, all middle and senior management, and employees.

The internal corruption of a high-ranking official on Renren.com was uncovered by He Yan, who discovered discrepancies in the accounts and quickly conducted a thorough investigation.

Of course, most of the time, the audit department won't take it too seriously; as long as it's not too outrageous, they won't bother with it.

But recently, Renren.com has run out of money, and the boss has put pressure on the audit department to conduct a thorough investigation.

He Yancai began to take it seriously.

The investigation quickly led to Hong Yan, the head of the purchasing department of the school's online store.

Upon investigation, the problem was discovered.

Looking at He Yan's ambiguous smile, Hong Yan felt as if he had fallen into an ice cellar.

No need to guess, the truth has come out!
His acceptance of bribes from distributors has been exposed!
Damn it!
Why is this woman investigating me of all people?

The fatal flaw is that the fact that he accepted bribes from distributors to inflate purchase prices was never investigated.

This is how to do?
Facing the tripartite hearing, Hong Bin sat down nervously, and his first sentence stunned everyone:
"Chairman, I'll address my question later; I have something to report!"

“???” Sun Yizhou was dumbfounded.

Dai Hede was also dumbfounded.

Instead, He Yan became interested: "Sure, who do you want to report? Your boss, Liu Qiang, the purchasing manager? Or Xie Fei, the president of the e-commerce division of Renren.com?"

"This is interesting!" Dai Hede also smiled, adopting a spectator-like attitude.

Because the reverse engineering of "WeChat Farm" failed, the coveted job of managing the Renren.com online store fell to Xie Fei.

Otherwise, I would be the president of the Renren.com online store.

Now Hong Yan has fallen into the trap. It would be best to expose Xie Fei and bring him down!
Ha ha ha.

However, at that moment, Hong Yan shook his head: "None of them."

"I want to report Vice President Dai Hede!"

"What?"

The words are not surprising and die endlessly.

Everyone in the room was shocked.

Dai Hede, who was waiting to see a good show, was no longer laughing.

Eating the melon will only harm your own head.

But what did this kid accuse me of?
I'm not in the e-commerce department, so I can't even get a kickback.

He immediately retorted angrily, "Manager Hong, you can eat whatever you want, but you can't say whatever you want. Don't you dare make false accusations."

Hong Yan ignored him and instead looked at Sun Yizhou:
"Chairman, if the problems I'm reporting are indeed true and have a significant impact on the company, and can salvage the company's strategic losses, could my minor issues be dealt with leniently?"

Sun Yizhou frowned, looked at Hong Yan's determined expression, and nodded: "If that's indeed the case, then it's fine."

Hong Yan only took some kickbacks.

The campus online store won't be online for another few days, and he won't be able to eat much anyway.

Under normal circumstances, it wouldn't have much of an impact.

If it weren't for the economic crisis, the decline in Renren.com's revenue, and its severe cash shortage, no one would have audited him!
"Manager Hong, don't you dare bite people indiscriminately!" Dai Hede's expression changed drastically, and he was terrified.

"Let him speak," Sun Yizhou said, his voice carrying an air of authority.

He also wanted to see what his most trusted subordinate, Dai Hede, was up to.

Hong Yan nodded and smiled, "Chairman, Dai Hede has been lying to you all along!"

"He said that the reverse engineering of 'WeChat Farm' is progressing smoothly and in an orderly manner, but that's all a lie."

"In fact, the reverse engineering of WeChat Farm failed last month and yielded no results at all."

"It's all just for show now!"

"what?"

Sun Yizhou was furious, his gaze towards Dai Hede seeming to want to devour him:
"Dai Hede, how do you explain this?"

"Chairman, I...I...he's just talking nonsense. The reverse engineering of 'WeChat Farm' is progressing smoothly and will be completed next month!"

"It can be done next month?" Sun Yizhou was so angry he laughed.

“I remember you said in August that reverse engineering WeChat Farm would be very simple and could be done in September.”

"In September, you said that WeChat Farm used code obfuscation technology, making reverse engineering a bit difficult, but you could get it done in October."

"In October you said that the code obfuscation technology was done, but the communication protocol was encrypted, and that it would be done in November."

"It's November now, and you're telling me it can be done in December!"

"Great, very good!"

"Even if we start developing from scratch in August, it should be ready by November, right?"

"You took shortcuts through reverse engineering, and you haven't achieved anything yet!"

“I…” Dai Hede broke out in a cold sweat, never expecting that his secret would be exposed like this.

Hong Yan said, "Chairman, the reverse engineering of 'WeChat Farm' actually yielded results last month. They managed to obfuscate the code and decipher the communication protocol encryption, but they found that the core logic was all on the server side, while the client side was just for display, so there was no point in reverse engineering it."

"In other words, the reverse engineering of 'WeChat Farm' was futile from the very beginning and was destined to fail!"

"It was just a waste of three months of manpower and resources, and a waste of the best window of opportunity for the counterfeit 'WeChat Farm.' Dai Hede was afraid you would blame him, so he dared not report it and asked his team members to keep quiet."

"How did you know that?" Sun Yizhou asked.

Hong Yan grinned: "I have a good relationship with Sun Qifeng from their team. He got drunk a few days ago at a KTV and that's when he told me."

"But I can guarantee that everything I said is true. You can confront the reverse engineering team."

"!!!" Dai Hede's mouth twitched.

Unexpectedly, it was Sun Qifeng who betrayed him.

Damn it!

Seeing Dai Hede's attitude, Sun Yizhou had already made up his mind: "What else do you have to say?"

Dai Hede sighed: "Chairman, accept your fate, we can't beat Wang Junshan."

"It's just a small game called 'WeChat Farm,' a Flash game, but he managed to create two sets of confusing logics: one simple to lure people in, and the other complex, which took us a month to figure out."

"We finally got it sorted out, but the communication protocol was encrypted. The encryption seemed simple enough that we cracked it in a week. But then we found a second one!"

(End of this chapter)