After Chapter 569, my mindset naturally changed.

"Thank you." Li Ying smiled sweetly, took the teacup from Song Ci, and gently stroked the warm cup with her fingertips.

Lin Hao sat down casually on the sofa and asked, "Boss Song called us over early this morning. What can I do for you?"

Song Ci patted his good friend on the shoulder, his eyes smiling, but his tone was serious: "Stop joking, I have something important to discuss with you guys today."

After saying that, he handed the documents on the coffee table to the two of them, saying, "Take a close look."

Li Ying and Lin Hao took the document and opened it at the same time.

"Huh? Tengda Technology is going public?!" Less than a minute later, Lin Hao couldn't help but exclaim in surprise, "So fast? Didn't they keep saying we'd have to wait another two years?"

Song Ci nodded slightly and sat down opposite the two: "The time is ripe. The entity for listing in the US, Cayman Tenda Holdings, has been registered, and all the relevant legal documents are here."

He pointed to the latter half of the document, "The reason I invited you here today is to arrange for the transfer of the shares of Tengda Technology held by Zhongxin Investment and Shanhai Capital to Tengda Holdings."

Li Ying read extremely quickly, having already browsed to the middle of the document. Her fingertips lightly swept across the complex equity structure diagram, and she immediately understood Song Ci's intention: to establish a red-chip structure.

Through this operation, all the equity of Tenda Technology's shareholders will be transferred to its overseas holding company.

As a Chinese citizen, Song Ci will regain 100% ownership of the equity in Tengda Technology, the domestic operating entity, which fully complies with regulatory requirements.

Domestic operating companies holding core licenses and businesses must be wholly owned by shareholders of Chinese nationality.

“The listing is scheduled for the third quarter of next year,” Song Ci added. “Goldman Sachs and Morgan Stanley will serve as the lead underwriters.”

Upon hearing this, Lin Hao was filled with excitement: "Tengda is already a super tech giant valued at $300 billion. Once it goes public, I wonder if it can break the record for tech stock listings?"

Li Ying closed the document, looked up, and said solemnly, "Don't worry, Chairman Song, Mr. Lin and I will fully cooperate to complete the listing preparations."

I will personally oversee the legal procedures for the share transfer to ensure everything goes smoothly.

“Besides Tengda’s IPO, there is another important matter.” Song Ci picked up his teacup and took a sip, his gaze slowly sweeping over the faces of his two confidants. “I plan to set up a family office.”

Upon hearing this, Li Ying and Lin Hao exchanged a glance, both seeing the "I knew it" look in each other's eyes.

After Liu Shishi's pregnancy was announced, they discussed the possibility privately.

Once people have offspring, their mindset changes, and they begin to make long-term plans for the continuation of their bloodline.

“You’re one of the world’s top billionaires, it’s time you set up a family office,” Lin Hao murmured in agreement, then asked curiously, “By the way, Mr. Song, how much wealth do you actually have?”

Song Ci frankly stated, "Apart from Tengda Technology and Devon Manufacturing, the main assets are those acquired by Shanhai Capital and Zhongxin Investment during the subprime crisis, which were bought up at the bottom of the stock market. The rest are all scattered investments."

Li Ying quickly calculated in her mind.

The Sino-Singapore Investment Company, which she oversees, currently holds shares in several technology companies, including Amazon, Apple, and Google, with a total market value of approximately $80 billion.

Lin Hao's Shan Hai Capital is comparable in size to Zhongxin Investment, and it's believed that they are not much different.

These two assets alone amount to $160 billion, not including his direct holdings in Tenda Technology and Devon Manufacturing.

Song Ci added, “Abroad, I have about $3 billion in long-term investments with Paulson Institute and Berkshire Hathaway.”

Other profits, including those from shorting the euro during the European debt crisis, have largely been repatriated and invested in Devon Manufacturing.

His tone was calm, but Li Ying and Lin Hao both knew that behind those few words lay countless thrilling capital operations.

Since the 2008 subprime mortgage crisis, Song Ci has demonstrated remarkable investment acumen.

By accurately shorting subprime securities and buying up high-quality assets at rock-bottom prices, he built a vast business empire in just four years.

However, as he himself said, compared with those wealthy European and American families who have accumulated their wealth over generations, his wealth is still concentrated in the stock market, with a relatively simple asset structure and a lack of diversified allocation.

Li Ying composed herself and brought her thoughts back to the topic of the family office: "How do you plan to set up this family office? Do you have any initial ideas?"

Song Ci, clearly having planned ahead, calmly stated, "The family office will report directly to me, and its core function will be to formulate overall asset allocation strategies and manage the relevant legal framework."

The specific plan is to transform the Sino-Singapore Investment into a family trust, which would also facilitate the concealment of some assets.

"You want to turn Sino-Singapore Investment into a family trust?" Li Ying was slightly taken aback, realizing the deeper meaning behind this arrangement.

“That’s right.” Song Ci nodded affirmatively.

“But I must remind you!” Li Ying’s expression suddenly turned serious, and her voice rose a few decibels, “Zhongxin Investment is an important shareholder of Tengda Technology, and the actual controller needs to be disclosed when the company goes public.”

No matter how many layers of trust are used to entangle the China-Singapore trust relationship, the regulatory authorities will eventually see through it to the individual.

The Song dynasty poet wrote in a calm tone: "It's alright. The Securities and Exchange Commission requires that the ultimate controlling shareholder be identified and disclosed."

I must clearly disclose the super voting rights I hold in Tengda Holdings through Shanhai Capital and Zhongxin Investment, but this does not mean that I need to disclose every single detail of the wealth.

"I understand," Li Ying said, suddenly realizing.

Tengda's prospectus only needs to disclose the trust settlor and beneficiary, without disclosing the internal wealth distribution of the trust and the specific trustee arrangements. This does leave some room for Song Ci to "hide his shortcomings".

Song Ci continued to elaborate on his plan: "As a family trust, Sino-Singapore Investment should have a more diversified asset allocation."

In addition to retaining some positions in US tech stocks, it is necessary to increase allocations to sectors such as healthcare, consumer goods, and index funds.

At the same time, it is also necessary to increase the allocation of physical assets such as commercial real estate, forests, and farms.

Li Ying understood: "I understand. Family trusts focus on wealth transfer and require a more stable and diversified asset allocation to mitigate risks."

Song Ci turned to Lin Hao: "Shanhai Capital will continue to focus on investments in emerging and cutting-edge fields around the world, complementing the trust assets of Zhongxin Investment."

A combination of flexibility and proactive approach, and steady, consistent succession – this is the key to long-term success.

Lin Hao nodded emphatically: "Don't worry, I will continue to advance the layout of Shanhai in the fields of artificial intelligence and biotechnology."

Song Ci smiled with satisfaction, then turned her gaze back to Li Ying, her words earnest:

"Sister Ying, we still need you to take on the responsibility of running the family office. I would like to ask you to serve as the CEO of the family office."

Li Ying was taken aback at first, then a look of helplessness appeared on her face, but that helplessness was also accompanied by the tacit understanding and trust built up over many years of cooperation.

She gave Song Ci a reproachful look: "I'm just destined to be a workaholic. From Sino-Singapore Investment to the family office, are you not planning to let me retire?"

Lin Hao chuckled: "Mr. Li, you're the one who's capable, so you should take on more work. Besides, for such an important position, who else could Boss Song trust to entrust it to besides you?"

Li Ying shook her head, but her eyes had already become focused, and she instantly entered a new role.

She took out an elegant notebook and pen from her Hermès handbag and began quickly jotting down key points.

"To manage such diverse and enormous assets for you, you need to build a professional team with a clear division of labor."

As she wrote, she said, “My preliminary estimate is that we need about 10 professional investment personnel to be responsible for the allocation of different asset classes;”

The finance, tax, and risk control team also needs about 10 people; in addition, a dedicated legal team, governance team, administrative support staff, etc., are also required.

A family office needs at least 40 professionals to function properly.

"Regarding personnel, Sister Ying, you can start by scouting and screening candidates, and I will conduct the final interviews before they can start working."

Song Ci is very attentive to the members of her family office, "especially the core members of the investment team, I need to personally oversee their selection."

Li Ying sighed softly and closed her notebook: "Talented people are hard to find, and reliable talent is even harder to find. It will probably take at least a year and a half to successfully set up a family office."

Moreover, these types of professionals are extremely sought after in the market, so we need to offer highly competitive compensation packages.

“There’s no need to worry about the budget.” Song Ci waved his hand. “We need top talent, so we should pay top salaries. In addition, I’ve decided to set up the family office in Hong Kong.”

“Hong Kong?” Li Ying said thoughtfully. “Indeed, the financial environment and legal system there are more suitable for family office operations.”

“Some non-core tasks in the early stages can be outsourced to Standard Chartered Private Banking, as they have extensive experience in this area.”

Song Ci added, "I have already spoken with the CEO of Standard Chartered, and they are very willing to provide support."

"OK."

“We’ll discuss the specific details later.” Song Ci glanced at his watch. “I have to go to a meeting at Devon Manufacturing later. They’ve encountered some technical problems with their newly introduced German production line.”

Lin Hao chuckled: "Alright, Mr. Song, you can go ahead and get busy. Leave the IPO preparations and the family office to us."

The three walked side by side toward the door.

In front of the elevator, Song Ci suddenly stopped, her tone becoming unusually solemn: "Sister Ying, Haozi, thank you for all these years."

A simple sentence, yet it startled both Li Ying and Lin Hao.

They have known each other for many years, ever since Song Ci started her business while she was still in college. They have been together through countless ups and downs in the business world.

Such a sentimental billionaire is a rare sight.

July is scorching hot, but by the end of the month, Jiuhua Mountain Villa, located on the outskirts of Beijing, is lush with greenery and offers a cool and pleasant respite.

The group's general office clearly put a lot of thought into choosing this location for the semi-annual meeting.

It allows executives to escape their daily busyness and focus on the lengthy agenda that lasts for several days, and it also makes it easier for everyone to relax and exchange ideas after the meeting, and to sort out their thoughts in the hot springs and gentle breeze.

The air conditioning in the multimedia hall, which can accommodate hundreds of people, was blasting.

The spotlight shone on the podium, where the group's Chief Financial Officer, Chen An, stood impeccably dressed in a suit, his voice carrying clearly throughout the hall:

"Good morning, colleagues. I will now report on the Group's financial performance in the first half of the year."

Before he finished speaking, the giant electronic screen that occupied the entire wall lit up.

Against a deep blue background, the words "Tengda Technology 2013 First Half Financial Report" are written in bold white letters, simple yet powerful, with the group logo below, exuding a sense of technology.

"In the first half of 2013, the Group's total revenue was US$21.1 billion, representing a year-on-year increase of 24.1%."

With the initial wave of mobile internet traffic growth fading, revenue growth has slowed compared to the explosive growth of previous years.

On the screen, complex bar charts and line graphs clearly show the revenue growth trajectory and changes in the growth rate.

"Net profit was $6.014 billion, with a profit margin of 28.5%." Chen An paused slightly. "This is the first time in nearly three years that the net profit margin has fallen below 30%."

Ultimately, as the group's business continues to expand, the proportion of its high-profit-margin gaming business is decreasing.

Financial models predict that the company's overall profit margin will continue to decline in the future, eventually stabilizing at around 25%.

The executives in the audience all understood what was going on.

Tenda made its fortune in the early years through its gaming business, which was a veritable "cash cow" with extremely high profit margins.

However, the company's business cannot be built solely on entertainment. Diversification has long been a strategic direction, and the moderate decline in profit margins is an inevitable price to pay for success.

After presenting the overall revenue and profit, Chen An skillfully switched between PowerPoint slides. The screen changed, displaying data from international giants.

"Let's take a look at the situation of our major global competitors."

He said calmly, "Amazon's revenue in the first half of the year was $31.7 billion, a year-on-year increase of 20%, but its net profit was only $75 million."

The main revenue comes from global e-commerce platforms and... the rapidly growing cloud computing business.

Please note the second-quarter data: Amazon Web Services (AWS) revenue reached $860 million in the quarter, demonstrating strong growth momentum and a promising future.

Google reported revenue of $28 billion in the first half of the year, up 19% year-on-year, and net profit of $6.14 billion.

Advertising revenue accounts for as much as 90% of total revenue, resulting in a relatively simple business structure and performance falling short of market expectations…

Chen An raised his voice slightly and concluded: "Although in terms of revenue scale, Tenda still lags behind Amazon and Google."

However, there is no doubt that our business structure is more diversified, our risk resistance is stronger, and our future growth engines are more abundant.

Sitting in the very center of the first row, Song Ci shook his head almost imperceptibly. Financial reports? Those things can only be used as a reference.

The barriers Amazon has built in cloud infrastructure and Google's near-monopoly in data and search algorithms cannot be fully represented by a few cold numbers on paper.

The real competition lies beyond the reports.

CEO Zhang Yong spoke up at the opportune moment: "President Chen, the specific operational details of each business segment will be reported in detail by the executive presidents of each business group later. You should focus on the core financial indicators first."

“Okay, Mr. Zhang.” Chen An readily complied and quickly flipped to the next slide. “Then let’s focus on the revenue contribution (in US dollars) of each of the group’s business segments.”

A brightly colored circular graph appeared on the screen.

Interactive entertainment revenue reached 6.119 billion yuan, accounting for 29% of total revenue, firmly maintaining its position as the world's number one.

Through self-developed high-quality games and revenue sharing with global platforms, it remains the cornerstone of the group's profits.

"Social media and advertising accounted for 8.018 billion yuan in revenue, representing 38% of the total, and are the core of the ecosystem's traffic. The synergistic monetization of WeChat and Weibo has exceeded expectations."

"Cutting-edge businesses such as cloud computing generated 1.032 billion yuan in revenue, accounting for 5%. Although it accounts for the smallest share, it represents the company's core technologies for the future."

"In the entertainment sector, the revenue was 2.11 billion yuan, accounting for 10%. Tengda has completed a closed-loop content ecosystem from literary IP to film and television production, theatrical distribution, and video playback, with stable growth."

"Fintech generated 2.555 billion yuan in revenue, accounting for 12% of total revenue. As internet finance becomes more widespread, it is one of the strongest growth engines in the future."

Local life services: 1.266 billion yuan, accounting for 6%. Currently, it is in a stage of fierce market subsidies and competition, and is in a state of strategic loss.

(End of this chapter)