Li Yuanbin looked at the big words on the screen behind Park Xueyun for a long time without saying anything. He just nodded slightly and leaned back in his chair.
Park Seol-yoon nodded, then reorganized her words and continued speaking to the senior executives present.
"Al Jazeera Energy's failed investments in Africa and India resulted in huge losses, yet the company chose to set up numerous offshore companies to help it evade taxes and conceal its operating losses. It also resorted to falsifying financial statements to inflate its stock price."
"But the losses from investing in India are simply too great. Using offshore companies to inflate profits and then drive up stock prices isn't enough to fill the hole. So, yesterday, the chairman of Peninsula Energy disclosed the company's hidden operating losses to the public, and the stock price plummeted as a result..."
Park Seol-yoon told Li Yuanbin what happened at Peninsula Energy Company, and Li Yuanbin already understood what was going on.
The general meaning is that Peninsula Energy Company established some SPEs in the course of its operations. The Chinese name is special purpose entities, which are what people call shell companies.
These shell companies then used Peninsula Energy's shares as collateral, to borrow money or raise funds, and then used the money to buy Peninsula Energy's assets. By doing so, Peninsula Energy could convert some liabilities into equity through accounting.
Simply put, some of Peninsula Energy's liabilities and losses are transferred to these shell companies through these special purpose entities. In this way, the liabilities on the books become lower, which means that the owner's equity becomes higher, in other words, the profit is increased.
Of course, it is also mentioned here that these shell companies will use Peninsula Energy’s stocks to carry out a series of operations, so as long as Peninsula Energy’s stocks continue to rise, this method can be repeated continuously.
If the financial statements look good, the market will have confidence in them, and then the company's stock price will rise. As long as the stock price rises, the shell company routine can continue. With the continuous inflow of money, the financial statements will look even better.
However, this approach will obviously not last forever, and there will always be a fatal blow that will make the bubble disappear with the wind.
With the failure of Peninsula Energy's large investment in India, this long-lasting cycle was finally broken.
This is why the chairman of Peninsula Energy made the statement yesterday. The failure of investment led to the decline in stock prices. Peninsula Energy’s strategy is doomed to fail.
"So, they must have cashed out already?"
Li Yuanbin leaned back in his chair, supporting his chin with his left hand, his right hand resting lightly on the armrest, his fingers tapping rhythmically.
He suddenly remembered that at the beginning of this year, the chairman of Peninsula Energy Company was still talking to him at a party about how good their company's stock price was. Now it seems that everything was fake!
Park Seol-yoon looked at Lee Won-bin solemnly, nodded, and then said worriedly, "Yes, the chairman of Peninsula Energy began selling his company shares over a year ago, while ordinary investors were deceived by Peninsula Energy and continued to buy Peninsula Energy's stock."
Kering Group still holds a lot of Peninsula Energy shares, which were purchased at the beginning and have not been sold yet.
This is also the most direct reason why Park Seol-yoon hurriedly asked Lee Won-bin to return to the company today.
Li Yuanbin was not at all surprised by what Park Seol-yoon said.
After all, they were the ones who carried out the financial fraud. They knew that the company's prospects were not good, so they gave investors confidence on the surface and continued to raise the stock price, but secretly they sold out the company's stocks in their hands, which was also a normal operation.
It's just a pity for those investors who don't know the truth...
If things continue to develop like this, Peninsula Energy Company is bound to go bankrupt. The unemployment of nearly tens of thousands of people is a small problem in Park Xueyun's view, but if Kering Group is affected by this, she will never accept it!
“How many employees does Peninsula Energy have now?”
Li Yuanbin closed his eyes and thought about the interests involved, then slowly opened his eyes and looked at Park Xueyun and asked.
Park Xueyun glanced down at the information in his hand, then looked at Li Yuanbin and said slowly, "After calculation, Peninsula Energy Company has nearly 70,000 employees, and some domestic investment projects are not included."
"Seventy thousand people... seventy thousand people... this is not a small number~"
Li Yuanbin whispered, his brain working frantically.
After some thought, Li Yuanbin decided to wait a little longer, maybe things would turn around.
The executives present here also set their sights on this man who has repeatedly led them to achieve great results. His decisions will be implemented with the utmost trust of these people.
"How about this, keep a close eye on Peninsula Energy for three days, and then we'll make a decision!"
After thinking for a long time, Li Yuanbin looked at everyone present and spoke slowly.
Li Yuanbin finally decided to wait.
Park Seol-yoon, standing on the podium, opened her mouth, obviously wanting to say something, but after thinking about it, she gave up the idea.
After the meeting, Park Seol-yoon followed Lee Won-bin to the office.
Park Seol-yoon looked at Lee Won-bin, who was sitting in a chair with a calm expression, and couldn't help asking out of curiosity, "Isn't the president afraid of losing money at all?"
Li Yuanbin put down the water cup in his hand, smiled, and asked Park Xueyun: "Just now I asked you how many direct employees the Peninsula Energy Company has?"
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