Climbing the Career Ladder - Chapter 2 - Continuing the Negotiation
“Ah, that scared me to death.” It wasn’t until the robbers had all left that Xiaoyu finally took a long breath and clung to his neck.
“Don’t be scared, it’s over now,” he said, his hand moving to cover Xiaoyu’s mouth.
Xiaoyu quickly realized what was happening, ran to the desk, grabbed some paper and a pen, and started their silent conversation.
“Do you think they might have left a Eavesdropping device?” Eventually, they gave up on writing and started to remove surveillance devices from the room.
“I’ll check it out. These amateurish bugging techniques are easy to handle-I’m not stupid!” The man seemed particularly sensitive about being called a “fool.”
“You’re just jealous! Haha… I like that!” Xiaoyu exclaimed.
Who says he can’t do it, who says he’s stupid, who says he has no money? He’s just a bit odd, just took a risk that hardly ever pays off.
Look at him, sitting in Wansheng’s meeting room- who would have thought he had just narrowly escaped being extorted for billions, a man whose depth even a veteran who had been in the market for decades couldn’t fathom!
Yes, he is indeed a wealthy man!
Li Mengze, who came from Beijing, was there for a risky investment. He was of average height, fair-skinned, and lean.
And Xiaoyu, truly a law student, though not yet a lawyer, was also quite a beautiful woman.
At this moment, they were engaged in a critically important negotiation.
“Elder Ye, Mr. Chen, Mr. Liu, you all look much better today!” As was customary when hosts and guests met, Li Mengze started with some polite remarks, something he had grown accustomed to.
“Mr. Li, Miss Sima, please!” Chen Xiaochong spoke smoothly. He appeared exceptionally calm today, his complexion far better than before, a stark contrast to a few days ago. This made Li Mengze inwardly nervous, realizing these individuals were not easy to deal with.
“Ladies and gentlemen, let’s continue with yesterday’s topic. Our side is interested in taking a stake in your company and is very sincere. We also hope to accelerate the negotiation process for cooperation.”
“Mr. Li, we are deeply grateful for your noble gesture, which will certainly help our company out of its predicament. These past few months, Elder Ye and Mr. Liu have been on edge, treading on thin ice, and it remains so. But as you know, although the current situation is not very satisfactory, our company is still holding on. After all, we’ve had significant gains in the stock market in the past few months, and there’s a considerable chance of a turnaround.”
“We agree with this. However, according to our analysis, the prime time has passed, and given your company’s condition, you might end up bankrupt, left with nothing.”
Li Mengze Leisurely sipping tea, he is only responsible for the beginning, the charge would be led by Sima Xiaoyu. He just listened, occasionally smiling;
Li Mengze could not afford to appear ignorant; he needed to make others believe he held the winning cards, inscrutably profound. Even in the simplest matters, he had to ensure no one could guess what he was thinking.
“Of course, Wansheng has a substantial amount of cash to invest in the stock market, which is considerable compared to our funds. However, do not forget one crucial point-Wansheng’s stock is currently experiencing a severe crash. The company’s shares plummeted from 60.23 yuan to the issuance price of 6.35 yuan, then to the guaranteed price of 4.0 yuan, and are now below the Securities Regulatory Commission’s mandated 2.70 yuan.
The decline has reached 95.5%, and despite Wansheng having made a significant repurchase at the price of 4.50 yuan, buying back 3 billion shares, it still couldn’t prevent the stock’s severe slide, which continued by another 40%. Even by the Securities Regulatory Commission’s minimum stock price standards, Wansheng is now insolvent. Should the Securities Regulatory Commission require liquidation, it is hard to see what measures Wansheng could possibly take.
According to our analysis, the most important factor now is time-to quickly find a solution and submit it to the authorities before the Securities Regulatory Commission’s announcement is made, aiming for a proactive approach.
You are all more aware of Wansheng’s actual situation than we are. Why endure such overnight distress?”
As Sima Xiaoyu concluded, her voice became somewhat somber, seemingly filled with regret.
Sima Xiaoyu’s words silenced Chen Xiaochong. He was well aware of the situation, but he hadn’t expected Sima Xiaoyu to analyze it with such clarity, hitting the nail on the head.
Chen Xiaochong knew that the actual situation was even more severe than what Sima Xiaoyu was aware of. Just four trading days earlier, the day before he met Sima Xiaoyu, he had overseen a buyback operation. However, the money they threw into it had vanished without a trace, as if it had sunk into the depths of the ocean.
Chen Xiaochong was still lamenting that investment. If only they hadn’t made it, they would now have sufficient funds to buy back all the outstanding shares. As long as their “Troika” stayed intact, even purchasing some non-tradable shares would have been feasible. But now, they were out of money.
Under the current circumstances, no company dared to assist Wansheng, uncertain of how the Securities Regulatory Commission would handle the situation. Every shareholder of any company was trembling with fear.
Sima Xiaoyu was the only one who came to negotiate, truly offering timely assistance. What demands she might make was another concern for Chen Xiaochong.
“From what we know, in the past three months, Wansheng has raised approximately 70 billion yuan from the stock market. Four days ago, they spent 13.5 billion yuan, and currently, about 55 billion yuan of funds are still available. This is where their advantage lies.
Wansheng’s stock has plummeted, and during this plunge, the company took no measures, which will be very unfavorable in the evaluation by the Securities Regulatory Commission. They will consider you irresponsible; even the 13.5 billion yuan spent was not impactful enough.
Looking at the current situation, Wansheng’s non-tradable shares are relatively stable, but 15 billion in tradable shares could easily bankrupt the company. Repurchasing these shares would require about 55 billion yuan, and the chances of converting these tradable shares into non-tradable shares are slim.
Unless Wansheng can find a strong and reputable company to collaborate with to boost the stock market sentiment index. Currently, the stock market is so adverse to you that people shun it as they would a fearsome tiger;
If Wansheng decides to tackle this issue alone, the Securities Regulatory Commission may impose very stringent demands. Are you prepared for this kind of challenge?” Sima Xiaoyu did not let up on her opponent, continuing to apply pressure from a public opinion angle.
Chen Xiaochong couldn’t help but ponder. He had a gut feeling that Sima Xiaoyu’s offer of timely assistance had significant ulterior motives, which is why he had been avoiding negotiation with her. Deep down, he was reluctant to cooperate with her.
Chen Xiaochong realized that he had underestimated Sima Xiaoyu, as well as the severity of the situation his company faced. Perhaps, lacking partners would prove to be their most fatal flaw. The Securities Regulatory Commission would surely require Wansheng to restructure, a fact that Sima Xiaoyu was obviously aware of.
The meeting room was unusually quiet, except for Li Mengze, everyone else was deep in thought.
Chen Xiaochong glanced at Elder Ye, who was contemplating, and even Liu Fangsi, usually somewhat restless, had calmed down.
Chen Xiaochong knew that Li Mengze was still sipping tea; he was the only one moving around in the entire meeting room.
Chen Xiaochong became increasingly interested in Li Mengze. Whenever there was a negotiation, he would just drink tea, go to the restroom, and smile, endlessly praising the tea. He even asked for some tea leaves to take with him when leaving, which was both amusing and frustrating to them.
“You must still be questioning my identity and that of Sima Xiaoyu, but let me assure you, we are just ordinary people and this money has been obtained through legitimate means, with nothing to hide. Therefore, this should not be an obstacle to our cooperation.
Whether we are providing timely assistance or have ulterior motives, our side remains a partner to Wansheng Company. This is evident in four aspects:
First, we have the funds.
Second, this money is legally earned and will definitely be approved by the Securities Regulatory Commission and the Economic Management Committee, ensuring its transfer from the bank to Wansheng Company’s account.
Third, we are not greedy. Operating on the principle of profitable and mutually beneficial cooperation, we are committed to a sincere partnership with Wansheng Company. Under any circumstances, we will all make money together, and despite being in a weaker position, we will not interfere with the company’s normal operations.
Fourth, we are the only party so far to propose cooperation, showing our sincerity. Our partnership will help mitigate the adverse effects of this incident on the stock market.”
As the three individuals across from him turned their gaze towards him, Li Mengze was sipping his tea as if the words he had just spoken were not his own.
Li Mengze was also quite nervous. He and Sima Xiaoyu were here to seek a partnership-a profitable and win-win collaboration. No one understood the significance of this cooperation better than he did.
Li Mengze was just a minor employee at Uchida Company, with no prospects for development or a stage to showcase his talents. This opportunity was crucial, a lifeline he had grasped in his prolonged drowning. He wanted to cling to it, but he didn’t know what was on the other end of the rope. He couldn’t hold on too tightly, as that could backfire. “Do not let them perceive your intentions; maintain an air of mystery,” he had read in a book.
The negotiation seemed irrelevant to Li Mengze; he was only fighting for a commission. From the beginning, he told Wansheng Company that he was hired to negotiate.
Li Mengze was an insignificant figure, while Sima Xiaoyu studied law, so all his efforts were to perform well for his commission: if successful, he would earn a substantial amount of money; if not, he would still receive a small sum.
Wansheng Company seemed to believe Li Mengze’s words, treating him as an intermediary with great courtesy and respect.
However, after several days, neither party had moved on to the main issues, and Li Mengze was becoming restless. He was quite young, in his early twenties, and his youth meant a lack of experience; his directness was a product of his age, leading him to reveal some of his cards.
Li Mengze wanted to gauge Wansheng Company’s reaction. He couldn’t afford to be stalled by these people. The risks were too great-who knew if the events of yesterday afternoon might recur, or if he would be as fortunate next time, or if he could still protect his Xiaoyu? If more groups came, he might not see a cent of the commission he spoke of.
Sima Xiaoyu was unaware of Li Mengze’s thoughts. She knew he was bold but didn’t realize he was prone to wild and disordered thoughts.
“We are also very grateful for our sincerity, Miss Sima’s analysis is incisive and profound, but I wonder if Miss Sima has any good strategies?”
“I dare not claim they are brilliant strategies, but based on our situation, we have proposed some solutions.
Our plan is based on the principle of mutual profitability, guided by the idea of long-term cooperation.
Currently, our company has 55 billion yuan in book funds, but your company’s stock market is in a state of collapse, with its credibility nearly lost and a massive number of shares in circulation. It can be said that Wansheng is now impoverished. Three months ago, Wansheng had 500 million shares, of which 400 million were non-circulating, with each share priced at 4.0 yuan, valuing the market at 20.0 billion yuan. Therefore, we believe that cooperation between our two parties should be based on the situation three months ago, taking into account the changes over the past three months, to implement mutually beneficial cooperation.
The main aspect of the plan is to invest capital to repurchase circulating shares, stabilize the stock market value, and invest in the company’s industries. For the first plan, our side will invest 50 billion yuan, our total investment will reach 531 billion yuan, and after restructuring, the company’s market value will be 100 billion yuan, with our side holding 35% of the shares;
For the second plan, our side will invest 50 billion yuan, our total investment will reach 545 billion yuan, and after restructuring, the company’s market value will be 120 billion yuan, with our side holding 30% of the shares;
For the third plan, our side will invest 55 billion yuan, our total investment will reach 565 billion yuan, and after restructuring, the company’s market value will be 150 billion yuan, with our side holding 30% of the shares. The specific plans will be mailed to your inbox, please refer to them.”
Sima Xiaoyu laid out the already prepared plans, looking at Wansheng’s “Troika”; Li Mengze also stopped sipping his tea, watching the three people across from him.
“Alright, we need to do some research. It’s almost noon, 12 o’clock. Please have lunch at the company, and let’s continue our negotiation at 2 PM,” Ye Mingwen said.
“Thank you, we need some rest at noon. Please have Wansheng arrange transportation for us back to the hotel,” Sima Xiaoyu declined.
“Having friends come from afar and not offering a meal hardly seems hospitable, Miss Sima. Our company cafeteria has its own unique flair,” Ye Mingwen insisted eagerly.
“Okay! It’s been a few days since I had a cafeteria meal, and I miss it a bit. Xiaoyu, let’s eat here. After eating, we’ll head back, sir Ye, we’ll take you up on your hospitality,” Li Mengze knew Sima Xiaoyu wasn’t accustomed to eating cafeteria food as she was very picky about her diet, except for what he prepared.
Li Mengze also wanted to stay today, especially since Ye Mingwen would be joining them, which felt quite pleasant; plus, eating in the cafeteria would save time. He knew the afternoon’s negotiation would be more intense, and he needed time to let Xiaoyu rest properly.
The cafeteria at Wansheng was large, spacious, and bright, with quite good hygiene standards-at least, Li Mengze thought it was better than the environment at the Japanese-funded company where he worked.
Lunch was eaten accompanied by Chen Xiaochong and Ye Mingwen. Everyone ate quickly, and no one spoke;
Sima Xiaoyu felt a bit uncomfortable. She seldom ate cafeteria meals and was rather picky, but fortunately, Li Mengze was there. Knowing what she liked, he would pick out what she didn’t eat, and give her more of what she did like, taking care of her considerately.
Li Mengze was used to this and had a thick skin, so he didn’t mind; but Sima Xiaoyu became increasingly embarrassed, though fortunately, Chen Xiaochong and Ye Mingwen weren’t paying them much mind.
When Li Mengze wolfed down one and a half servings of food, all four put down their chopsticks, almost simultaneously finishing their meal, and exchanged smiles.
This meal, in an unspoken way, brought everyone closer together.
Sima Xiaoyu and Li Mengze returned to the hotel without saying a word; they got out of the car and went straight to the cafe in the restaurant.
Li Mengze said that one shouldn’t waste the free coffee provided by a three-star hotel. Of course, the main reason was that their room wasn’t a place for discussion. He always felt that even in the cafe, someone was watching them, though he didn’t know who it might be.
“Xiaoyu, do you think they will agree to our terms? I’m really unsure,” Li Mengze expressed his concerns openly in front of Sima Xiaoyu. This opportunity was too good, and he needed it badly. He had great ambitions but lacked opportunities. Although Sima Xiaoyu understood his feelings, he couldn’t help but worry.
“Don’t worry, Li Mengze. We are currently selling at a loss! Think about it, Wansheng company is out of money and in a credibility crisis. We are really providing timely assistance! This afternoon, just keep your mouth shut and drink tea!” Sima Xiaoyu glanced at him, seemingly in a good mood. She had never handled such an important event before, and she really enjoyed this negotiation.
“Alright, I’ll listen to you. But you also need to be aware of our shortcomings. We don’t have any credibility either. As long as it doesn’t exceed our bottom line, we should be ready to make concessions. Let’s go back to our room and rest for a bit. We have more negotiations this afternoon,” Li Mengze said with a sly smile, earning a playful scolding from Xiaoyu.