From Becoming Penguin's Major Shareholder to Building an Entertainment Empire

Note that this book is a slow-burn novel, and it will become increasingly exciting as the story progresses.

It starts from 2002, beginning at the Beijing Film Academy, and starting with the H...

Chapter 55 Shen Fang is actually a stock market genius

After going downstairs, Shen Fang found that the scantily clad 36D girls had already left, and Shen Fang couldn't help but feel as if he had lost something.

What have we lost?

Shen Lanlan directly interrupted Shen Fang's thoughts.

"Uncle, I'm hungry."

Sinking Square...

Shen Fang simply slumped onto the sofa like Ge You in a relaxed pose.

"Go and order whatever you want to eat. I'll pay the bill in a bit. Go and get the whiskey from my liquor cabinet so we can have ice."

Shen Lanlan pouted.

"You just know how to order me around."

"If I don't order you around, who else should I order around? I'm going to Shenzhen tomorrow. Do you want to go home and visit your family?"

Shen Lanlan quickly shook her head.

"No, why go home? I'm having a great time in Beijing, and I'm not planning on going back."

After saying that, Shen Lanlan walked to the liquor cabinet, picked up a bottle of whiskey, poured two glasses, added some ice, and handed one to Shen Fang. She then picked up the phone and ordered some dishes.

A moment later, the door was opened.

Shen Kun returned, and he was quite surprised to see Shen Fang.

"Third Uncle, why are you back? Why didn't you ask me to pick you up?"

Shen Kun glanced at the whiskey on the table and poured himself a glass. He offered Shen Fang a cigarette and lit it for him.

Shen Fang lay lazily on the sofa, smoking a cigarette and drinking whiskey. With his exceptionally handsome face, he looked like a picture in a magazine.

"Xiao Kun, I asked you to raise funds. How much have you raised so far?"

"Third Uncle, it's about 200 million. Any more than that, and we'll have to use money from the company."

Chen Fang flicked his cigarette ash.

"The company's money is the company's money. Now that I've delegated authority, the money will no longer be used. 200 million should be enough."

Shen Kun nodded.

Shen Lanlan was shocked when she heard this. Her mouth was wide open, big enough to fit at least two steamed buns.

"Uncle? How do you have so much money???"

Shen Kun smiled and said, "This is all money that my third great-uncle made from stocks. He started with 2 million yuan and earned it in less than 3 years. He's a stock market genius."

Shen Lanlan looked at Shen Fang in surprise.

"Uncle, are you the reincarnation of Ding Hai???"

Shen Fang rolled his eyes at Shen Lanlan.

"Hong Kong stocks had been in a bull market for the past few years, with the Hang Seng Index more than doubling in value. The social stability and economic development following the 1997 handover were also major drivers of the bull market, leading to more mainland companies listing in Hong Kong. Coincidentally, in 1998, the US experienced a bull market driven by internet technology stocks, resulting in a boom in A-shares and a continued prosperity in the Hong Kong stock market. Even a fool could make money. I just had some foresight and invested in Li Ka-shing's Cheung Kong Holdings, electronic components, and technology stocks. I was lucky enough to make this much."

Shen Lanlan looked puzzled.

"Then how come I see the news that the domestic stock market has been falling all year?"

Shen Fang looked at the silly and cute Shen Lanlan.

"Pour me a glass of wine, and I'll share some knowledge with you."

Shen Lanlan quickly ordered a drink for Shen Fang.

Shen Fang took a sip.

"This matter involves several people, including Shi Meilun, a representative of the overseas returnees faction; the chairman of Lantian Group; and Liu Shuwei."

Shen Lanlan looked completely bewildered: "Who are all these people?"

Shen Fang was speechless. It was a waste of breath to talk to Shen Lanlan, who only knew how to eat, drink and have fun.

Shen Kun smiled: "Lanlan, this is a major event that has shaken the financial world. The Lantian incident is the biggest private event in the domestic securities market this year. The bursting of the huge bubble of Lantian, which was known as a 'veteran high-performing' company, is another ugly drama in the Chinese stock market after Yin Guangxia."

And Liu Shuwei is the woman who unveiled the secrets of the Lantian Group.

Shen Fang took a sip of his drink: "This company has used the corruption of senior executives in the banking and finance industry to create a false business empire."

First, the company fabricated accounts receivable. That year, its main business revenue was 1.84 billion yuan, while its accounts receivable were only 8.57 million yuan. The company explained that the rest were cash transactions (do you believe that?).

Second, inflating fixed assets. This included forging land certificates to inflate intangible assets by 11 million yuan and forging bank statements to inflate bank deposits by 27.7 million yuan.

Third, earnings per share were inflated. The share capital was altered from 83.7 million to 66.96 million, thus reducing the total share capital and increasing earnings per share.

Fourth, inflated fixed assets. Most of the new funds, loans, and profits were converted into fixed assets, and the proportion of fixed assets in that year was more than twice that of the industry average.

Fifth, inflated inventory. The proportion of work-in-process inventory was more than double that of its peers. From 1999 to 2001, Lantian Group's inventory increased from 260 million yuan to 4.4 billion yuan. Work-in-process accounted for 82% of the inventory.

Sixth, inflating sales revenue. In 2000, the company's main business revenue was 1.8 billion yuan, and in the first half of 2001 it was 800 million yuan, while it only paid 40,000 yuan in business tax and 280,000 yuan in value-added tax each month.

"Actually, anyone with even a little financial knowledge would understand that Lantian Company has problems, but you know, Lanlan."

"Did Chairman Lantian bribe them?"

Shen Fang nodded.

"Why could a 'naked Lantian' create a 'glorious myth'? It was through corruption, through the fact that the former chairman of Lantian Group, Qu Zhaoyu, was 'only a telephone line away' from some officials of major banks—the high kickbacks enabled him to obtain a huge loan of 3 billion yuan from the banks. This money all belonged to the people."

Anyone with even a basic understanding of finance can see the problem.

However, all the experts suddenly developed "collective aphasia".

However, this hornet's nest was punctured by the "ungrateful" and weak woman Liu Shuwei, and the "Lantian myth" was shattered. Although it reduced the losses for the country and shareholders, it fundamentally cut off the livelihood of the "rent-seeking class" represented by Qu Zhaoyu.

Shen Lanlan looked on with a gossipy expression.

"Isn't she afraid of retaliation?"

Shen Fang laughed heartily.

“She’s definitely afraid of retaliation, but she has connections. She reported it directly to the financial internal reference, and she’s an insider in Beijing’s economics circle, so she has a very deep background.”

"Later, this group from Lantian dared to come to her door and shout and yell, and in the lawsuit they demanded that Liu Shuwei 'publicly apologize, restore her reputation, eliminate the negative impact, and compensate for economic losses of 500,000 yuan.' They also threatened her, telling her to be careful with her life and property, and even dared to send threatening emails saying, 'The day the case goes to trial is the day you die.'"