Reborn in 2012, building a new energy empire

Friday, January 7th.

The soybean meal 1301 contract opened at 3728 yuan, about 0.3% higher than yesterday's closing price, but did not show the strong gap that the market had expected.

The market trend was unusually stable. Prices fluctuated within a narrow range of 15 points between 3725 and 3740, and trading volume shrank significantly compared to yesterday.

There were no sudden large orders or fierce battles; it was as if yesterday's massive turnover had exhausted the energy of both the bulls and bears, and they needed to catch their breath today.

Jiang Haoran sat in front of the computer, looking at the curve on the intraday chart that was almost horizontal.

The sentiment in the forum began to shift:

[No need to think about it, it's bound to fall. The major players couldn't push it up all morning.]

With such a significant drop in trading volume, the major players have definitely exited.

[I also think it's peaked; the price is already at 3700. In previous years, soybean meal was only around 2000. Do they really think soybeans are made of gold?]

This location is too high, I'm too scared to go in.

I bought in yesterday when the stock hit its daily limit, but sold in a panic when it plunged in the afternoon. Then it rallied again at the close... Everyone else is making money while I'm losing money, boohoo.

Jiang Haoran closed the forum page. He was all too familiar with these voices—when the market moves forward hesitantly, it is always accompanied by various doubts and denials.

Most people only look at the current price level, but fail to see the supply and demand logic behind the price.

He pulled up the latest data from the US drought monitoring map.

Large areas of the core production region in the Midwest are still marked in deep red as "extreme drought," with no signs of relief. Weather models predict continued low rainfall for the coming week.

There was virtually no change in appearance.

In the afternoon, the market remained subdued. Prices climbed slowly, reaching 3745 yuan at 2:30 PM, a gain of nearly 1%. Trading volume remained sluggish.

Jiang Haoran felt much more at ease.

This slow, gradual rise in volume is often a healthy trend in a strong market, indicating that holders are reluctant to sell and that selling pressure is very light.

The market is digesting yesterday's massive turnover, accumulating strength for the next upward attack.

The closing price was 3761 yuan, a gain of 1.01% for the day. The daily candlestick chart showed a small positive line, with trading volume shrinking by more than 40% compared to the previous day.

Everything is progressing at the expected pace of the trend.

After the market closed, Jiang Haoran made a phone call to Zhou Mingyu.

"Young Master Zhou, how's the funding preparation going?" he asked bluntly. "If the cooperation agreement can be signed this week and the funds arrive, we can start immediately."

The sound of turning over papers came from the other end of the phone. Zhou Mingyu paused, then said, "The first batch of funds, 3000 million, is ready and has been opened in a separate account. Once the agreement is signed, it will be in place within three business days."

"Okay. The revised agreement should be ready today, and Attorney Shen will discuss the details with you."

"Very efficient. I'll wait for your reply."

After hanging up the phone, Jiang Haoran began to organize his weekend plans.

Early Saturday morning, he took the relevant materials to King & Wood Mallesons, where Shen Mo worked.

The air conditioning in the reception room was very strong, which contrasted sharply with the sweltering summer heat outside the window.

Shen Mo had already prepared the materials, and several documents were spread out in front of him.

"Regarding the choice of the partner, I suggest adopting a limited partnership structure." Shen Mo adjusted his glasses, adopting a professional demeanor. "There are three reasons."

"First, tax transparency. The partnership itself is not a taxpayer, and the income is directly attributed to the individual partners, thus avoiding double taxation as with corporations."

This is very suitable for your structure, which is primarily aimed at investment returns.

"Second, the rights and responsibilities are clearly defined. The general partner (GP) bears unlimited liability and is responsible for executing affairs; the limited partner (LP) bears limited liability up to the amount of its capital contribution and does not participate in management. This corresponds perfectly to your and Zhou Mingyu's roles."

"Third, it is highly flexible. Terms such as profit distribution, joining and withdrawing from the partnership, and transfer of shares can be freely agreed upon in the partnership agreement, unlike the many legally mandated requirements of a corporation."

Jiang Haoran nodded: "Is there a better way for me to invest as the GP?"

"Yes." Shen Mo pulled out a document. "I suggest you register a limited liability company first, and then use this company as the general partner (GP) in the partnership."

This adds an extra layer of risk protection between you and the partnership—in the event of debt disputes within the partnership, your personal assets will not be recoverable.

He paused for a moment, then said, "Of course, this will increase management costs a bit, as we'll need to prepare annual reports, do bookkeeping, and file taxes every year. But considering the scale of your collaboration, this cost is worthwhile."

Jiang Haoran thought for a few seconds. This was indeed a more prudent solution.

"Then let's go with this structure," he said. "I will register a company as the GP and contribute 500 million as subordinated capital; the company designated by the investor (Zhou Mingyu) will act as the LP and contribute senior capital."

Shen Mo wrote in his notebook: "I can handle the company registration for you; it can be done within a week. The main clauses of the partnership agreement will be adjusted accordingly."

"Furthermore," Jiang Haoran added, "the independent clause regarding investment decisions must be retained. This is my bottom line."

"Understood. The terms are clearly stated, and the other party's legal department has not raised any objections."

The conversation lasted for more than an hour.

Shen Mo explained the legal meaning and practical operation of each clause in detail, while Jiang Haoran asked questions from time to time.

By the time all the details were confirmed, it was already noon outside the window.

As he left the law firm, Shen Mo saw him to the elevator: "I'll send you the final version of the agreement before I leave work today. If there are no problems, we can arrange for the signing next week."

"Thank you for your hard work, senior brother."

On Saturday afternoon, Jiang Haoran received the final draft of the agreement from Shen Mo.

After carefully reviewing it, he forwarded it to Zhou Mingyu with the note: "The cooperation agreement has been finalized. Please review it. If there are no objections, we can arrange for signing next week."

Zhou Mingyu quickly replied: "Received. I'll take a look first, and then have the legal department review it."

The candlestick chart of soybean meal comes to mind, the curve representing price still extending upwards. But further ahead lies a broader picture: the layout of real industries, the deep cultivation of the industry, and the accumulation of technology.

The futures market is just the starting point, a place to accumulate your first pot of gold. The real battlefield is in the real economy.

He remembered that he had to see Lin Miaomiao next Wednesday to review the experimental data.

Behind those dry numbers and charts may lie the key to a future breakthrough in an industry.

Everything is progressing according to plan.

But Jiang Haoran knew that the real test had only just begun.

After the cooperation agreement is signed, he will manage funds of nearly 40 million (his own 5 million junior tranche plus Zhou Mingyu's 30 million senior tranche).

With such a massive amount of capital, every fluctuation will be amplified many times over.

The pressure will increase exponentially.

But he was ready.

All the efforts I've made since my rebirth have been for the purpose of standing on a bigger stage and doing more important things, haven't they?

A breeze blew in from the balcony, carrying the warmth unique to a summer night.

Jiang Haoran opened his eyes, turned on his computer, and began to formulate his trading plan for the following week.

The market never sleeps.

And he must always stay ahead of the market.