Chapter 540 False Operation

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Xu Yang said, "I suspect that this issue is related to me, it was caused by me."

Lan Penghua was taken aback, "How is it related to you?"

Xu Yang briefly explained the feud between himself and the Bai Family as well as the slander against the Lijing Hotel.

Lan Penghua said, "So that’s what happened, but what should I do now?"

Xu Yang said, "I’ll discuss it on my side first and get back to you later. Don’t worry, since we are friends, I won’t implicate you."

Lan Penghua said, "President Xu, I trust you."

Xu Yang said, "Good."

After hanging up the phone, he relayed the situation to Ma Yangrong and then said, "Regarding these two issues, as well as any future moves the Bai Family might take, come up with a response strategy with your team."

"Okay," Ma Yangrong left.

Half an hour later.

Ma Yangrong returned to Xu Yang and presented the plan.

Xu Yang’s face broke into a smile, "Not bad, let’s do it this way."

...

The Lijing Hotel issued a statement.

There were no issues with the hotel’s management. After a self-inspection, the hotel staff had fulfilled their responsibilities, and the linens had been changed. The hotel reviewer, Han Fang, was instructed by someone to slander the hotel. The hotel would pursue the related responsibilities.

As soon as this statement came out, the internet exploded.@@novelbin@@

"Damn it, they just won’t own up to it!"

"Trash hotel, nobody should stay there in the future!"

"Let’s all boycott Lijing Hotel and shut it down!"

The netizens didn’t believe a word from the hotel. Each one was filled with righteous indignation. Some even more radical netizens went to the hotel entrance to hang banners.

At the same time, Lan Penghua went to the Jiangcheng Police Station to turn himself in.

He confessed to some of his past illegal activities and was detained by the police.

...

That morning.

A person arrived at Chi Yang Technology Company.

Entering the CEO’s office, he introduced himself, "Hello, Mr. Gu, my name is Shen Pingkang, assistant to Bai Family’s second young master."

Gu Feichi asked, "Hello, what can I do for you?"

Gu Feichi knew of the Bai Family and the second young master.

The Bai Family had two brothers; the elder was a profligate.

He had been arrested a few days ago, put away by Xu Yang.

The second young master was not a profligate, but was quite capable and the heir to the Bai Family.

Gu Feichi just didn’t know why the second young master’s assistant would be seeking him out.

Shen Pingkang smiled slightly, "Mr. Gu, do you believe that with just one phone call, our young master could shut down your company?"

Gu Feichi’s expression changed, "What are you trying to do?"

He believed that to be true as his company was only valued at five billion yuan.

The Bai Family was worth hundreds of billions, and the second young master was the heir with a powerful network.

If the second young master wished, a single phone call could indeed bankrupt his company.

Shen Pingkang chuckled, "Mr. Gu, actually, you have only yourself to blame for approaching Xu Yang for investment. If it weren’t for that, we wouldn’t be meeting. Enough chit-chat. Your company is valued at five billion, and Xu Yang invested two billion for a forty percent stake. I value your company at fifty billion and will invest twenty billion for a forty percent stake.

No problem, right?"

Upon hearing this, Gu Feichi was stunned.

He wasn’t a fool and knew that there was no such thing as a free lunch in this world, although getting hit by a brick might be possible.

His company’s real valuation was indeed five billion.

Shen Pingkang straightforwardly stated a valuation of fifty billion and offered to invest twenty billion, proposing a tenfold premium valuation.

There had to be a catch.

After some thought, he understood and asked, "Are you trying to take over President Xu’s assets?"

Exactly, the plan was to take over Xu Yang’s assets.

Initially, the company was valued at five billion.

Xu Yang’s investment of two billion took forty percent of the shares.

Now, with a valuation of fifty billion and still selling twenty billion for forty percent, it amounted to a 1000% increase in the share issuance.

Xu Yang didn’t subscribe but still invested two billion.

So his shareholding was diluted, leaving him with only four percent.

It was possible to create false financial statements, claiming that Chi Yang Technology was poorly managed, leading to losses, shrinking the company’s valuation to fifty billion again.

Thus, a four percent shareholding would then be worth only two billion.

If such operations were to continue, it could even reduce Xu Yang’s share value in the company to twenty million or even two million, two hundred thousand.

Meanwhile, Shen Pingkang’s fifty percent stake remained unchanged.

Of course, such operations were naturally illegal.

But with the powerful connections of the Bai Family’s second young master, it was still doable.

Shen Pingkang didn’t need to put in any money; he just had to sign the contract, proving an investment of twenty billion was made.

Shen Pingkang laughed, "Mr. Gu is a smart man. Just say whether you agree or not. If you don’t, just wait for your company to go bankrupt!"

Gu Feichi’s complexion turned extremely ugly.

He had truly not expected that even after attracting Xu Yang’s investment, such a situation would arise.

To be honest, he was rather grateful to Xu Yang.

He felt that Xu Yang’s investment in his company was a recognition of its potential.

Xu Yang’s eye for investment was famously keen; getting his investment meant that his company had a promising future.

As long as it developed and created new energy sources, it could truly start an energy revolution.

If he agreed to Shen Pingkang, wouldn’t that be betraying Xu Yang?

As he found himself stuck between a rock and a hard place, his cell phone on the office desk rang.

Looking at the caller ID, he saw it was Xu Yang calling.

After picking up, what Xu Yang said made his eyes light up.

After hanging up the phone, Gu Feichi said to Shen Pingkang, "I agree to your terms, but with one condition."

Shen Pingkang laughed, "Tell me, what’s the condition?"

Why Gu Feichi had changed his attitude after one phone call didn’t interest him.

All he knew was that if Gu Feichi didn’t agree, Chi Yang Technology would go bankrupt and Gu Feichi would become penniless.

So he was certain that Gu Feichi would agree.

As for the condition, it depended on the situation.

As long as it didn’t affect the overall plan, he would agree.

Gu Feichi said, "You only have dividend rights for your shares, no decision-making power; if you withdraw your investment, you must give a six-month notice, and I have the first right to repurchase."

Shen Pingkang laughed, "No problem."

He never intended to participate in the decision-making anyway.

Why bother with management issues when you could just get dividends directly?

Gu Feichi asked, "Then that’s settled. When do we sign the contract?"

Shen Pingkang replied with a smile, "Let’s sign now, my people are already waiting in the company’s reception room."

With that, he took out his phone and made a call.

Soon, his people came in.

The contracts had already been drafted and handed to Gu Feichi for review.

Without seeking a lawyer’s advice, Gu Feichi checked himself.

He signed his name directly upon finding no issues with the contract.

The valuation of Chi Yang Technology then became five hundred billion.

With a sixty percent stake, he became a big shot worth three hundred billion.

If Chi Yang Technology were listed, he could cash out his shares and become a billionaire.

Unfortunately, all of this was fake and not cashable.

Shen Pingkang didn’t spend a dime, yet owned forty percent of Chi Yang Technology by falsifying the financial statements.

Xu Yang’s shareholding was diluted to four percent.

The next step was to continue producing false financial reports, proving that Chi Yang Technology was poorly managed, reducing the valuation back down to fifty billion.

This would take time; it’s not possible for five hundred billion to plummet to fifty billion in just a few days – that would be too suspicious.

Once the deal was done, Shen Pingkang left and headed to a detention center in Jiang City.

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