Tao Liangchen
Chapter 175 Under Thirty Yuan
Even if my old man handed me the entire Sihai International Cultural Tourism City project to manage, Su Yehao wouldn't be this worried.
Real estate development, when you get down to it, is just a few basic things, and he has experience with it.
However, the financial field is different. Every industry is like a separate mountain. Specialized matters must be left to specialized talents. Su Yehao knows the general direction, but can't really help much with the specific details of holding positions.
This is different from investing in Yahoo.
With Yahoo, Su Yehao knows that it will climb upward, albeit with twists and turns. As long as there are no mistakes in its operations, it will always rise to new heights.
But doing things like shorting with leverage can easily lead to heavy losses with a short-term fluctuation. Success or failure can be decided in just a few hours, so the risk is higher, and the volatility is greater.
Correspondingly, the short-term returns can also be amazing.
This is much more exciting than buying stocks...
The next day.
Su Yehao went to Vice President Zheng Yongwen's company and had the staff handle the transfer.
Before this, Su Yehao had specifically used his connections to inquire about information in private.
From the feedback he received, his little aunt's ex-boyfriend had a good reputation in the industry. His interpersonal skills seemed average, but people mentioned that he was capable.
Rumors that he might become a chief consultant had already begun to circulate, but nothing had been officially decided yet.
A full fifty million Hong Kong dollars entrusted to someone else to take full responsibility. Su Yehao wasn't relaxed when making the decision, but as soon as the fifty million disappeared from his account, the weight in his heart lifted.
At worst, he could just delay for a while and consider it less money earned from Yahoo.
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After leaving Zheng Yongwen's company, Su Yehao went directly to KOKO Venture Capital to discuss serious business with Nong Qingying.
Since this well-connected Nong Qingying parachuted into Su Yehao's venture capital company as vice president, she started leading a team to negotiate with Yinhai, a company in the mainland that sells document tools.
After contacting them twice, she told Su Yehao with a charming smile:
"We were almost finished with the negotiations before. I haven't really felt needed lately. Three million seven hundred thousand U.S. dollars in exchange for 45% of Yinhai's equity, that's the bottom line. Are you sure you really want to invest? Are you going to let me work hard for nothing, and then shake your head and say forget it?"
"As long as the conditions are right, of course I'm willing to invest. Did they agree to drastically lower the price of WPS?" Su Yehao asked.
Nong Qingying nodded and replied, "Yes, they will lower the product price to below thirty yuan within a month after receiving the financing. They weren't happy making this decision, mainly because they were worried that previous customers would ask for refunds, and they were also worried that it would affect the company's reputation."
Buyers would definitely be unhappy if the product price dropped drastically, which was unavoidable.
Su Yehao waved his hand dismissively and said,
"Anyway, there aren't many customers in total. Let them complain, they won't blame me. If Yinhai can't get financing, they're going bankrupt anyway. What's the point of caring about that? I'm worried that even selling the program for thirty yuan won't be enough to seize the market. Microsoft has become a hooligan, but users are using it voluntarily, so we can't even accuse them of disrupting the market."
"WPS currently sells for one hundred and sixty-nine yuan. Dropping it to below thirty yuan should stimulate sales, but are you sure you can make money? I always feel like this company... doesn't have much of a future."
KOKO Venture Capital doesn't have much business right now. Nong Qingying spent half an hour looking at the data after she arrived and basically familiarized herself with everything.
She has been busy negotiating with Yinhai these past few days, and she already knows something about that company.
Judging from the current deficit and market share, the situation is indeed not optimistic. Hong Kong is currently using Microsoft Word, and compared to Word, WPS has fewer functions.
Su Yehao knows that traffic equals wealth, and he also knows that this company will have a chance to make money in the future.
But if you ask him how to operate it specifically, he has to take it one step at a time.
The initial goal is to use WPS to bind tAt chat, or to advertise on the document's official website to attract traffic.
As for how much profit the WPS document can bring after the price reduction, Su Yehao doesn't really care. Earning a little bit of profit right now isn't even enough to develop the subsequent versions of the document. Every aspect, such as market development and research, is very expensive.
Su Yehao told Nong Qingying, "The top priority is to stop Microsoft and prevent the huge market in the north from being monopolized by Microsoft. In terms of profitability, things like corporate, school, and official orders should still be able to make money. At that time, we will divide the product into a trial version and an official version, and users will be willing to spend money to add more features, I believe."
"How long will it take to earn back the investment just by relying on these things?"
"...I don't know, but it can also help my other products, allowing users to develop a dependency, similar to shopping at Watsons, buying all the products you need at once to avoid having to go to several stores. Over time, everyone goes to Watsons, and this company becomes more and more popular."
Su Yehao used his scattered experience from his previous life to summarize and explain it to Nong Qingying.
This girl probably understood, but she didn't know anything about the value of this aspect.
In fact, although Nong Qingying is learning from Su Yehao to invest in Yahoo, she doesn't even understand why Yahoo is worth more than twenty billion U.S. dollars. Analyzing it solely from the financial reports, the revenue obviously can't support such a market value.
She is still looking at internet companies like Yahoo in the same way she looks at traditional companies.
The vast majority of people are the same.
It hasn't been many years since computers went from being used for office work to being used for social entertainment. Yahoo was only founded in 1995, so it's normal that people's attitudes can't change for the time being. This is Su Yehao's opportunity.
In this regard, he stands higher and sees farther than everyone else, avoiding many detours and forks in the road.
After a brief conversation.
When talking about the investment of fifty million Hong Kong dollars, Nong Qingying said in surprise, "Professor Zheng Yongwen? I also heard his lectures when I was in school. Has he actually gone from being an honorary professor to an honorary vice president?"
"I'm not sure. I just know he seems to be very powerful. I called my grandfather and asked him. The old man told me that he was a little regretful that he couldn't continue with my little aunt back then."
As soon as Su Yehao finished speaking, he added, "My grandfather has high standards. This is already a pretty high evaluation. My dad has become what he is today, but he is still looked down upon by the old man, who thinks he just stumbled upon a dog turd and got lucky."
"Just because of this, you let him manage fifty million for you?" Nong Qingying started packing her things, preparing to drag her man to the mall to buy clothes.
"Of course not. It's mainly because his views on recent issues coincide with mine. Great minds think alike, so I plan to trust him this once."
"Still great minds? If you have the ability, don't make excuses when I call you tonight."
"...Those are two different things!"
Just at this moment, Su Yehao received a call from the bank.
The twenty million Hong Kong dollars transferred from Sihai International's account had just been credited, and the bank's account manager immediately started promoting wealth management products, wanting to keep the money.
Su Yehao certainly didn't want to leave the money in the bank to earn interest. He would lose a lot of money, so he refused on the spot.
He perked up and said to Nong Qingying,
"You can contact the people from Yinhai and have them come over to discuss the contract. Prepare to sign it, just according to the current conditions, so as to avoid unexpected problems."