Chapter 18: Controlling the Three Future Unicorns

With the growing popularity of FY Technology, George, in his role as CEO, has shifted his primary focus back to Huang’s International Investment. The financing negotiations he and his team have been conducting with Alibaba and Baidu have reached a critical juncture.

Huang’s International Investment is no longer concerned about funding issues, thanks to the constant transfusion of capital from FY Technology. The strategy is simple: move FY Technology’s funds out under the guise of investment, route them through offshore companies, and then inject them back into Huang’s International Investment. Essentially, FY Technology has become a cash cow.

However, Huang Feiyang has not been excessive. He set a limit of 3 billion. Of that, 1 billion will flow into Huang’s International Investment, while the remaining 2 billion will be left for the trading teams. This task just needs to be completed before September, and given the current rate at which FY Technology is raking in money, that will be no problem at all.

In reality, transferring such large sums of money faces considerable resistance. To overcome this, Huang Feiyang made several strategic phone calls. By leveraging his personal connections, he managed to smooth over the obstacles. Of course, all these procedures are entirely legitimate; the calls were merely to minimize unnecessary friction and trouble.

On the afternoon of August 14, Huang Feiyang and Chen Xiruo boarded a flight to the Imperial Capital, as the military training for freshmen at Jinghua University was about to begin. It was time for them to report for duty.

It is worth mentioning that on that same morning, Huang Feiyang received a celebratory call from George. The first tranche of 1 billion from FY Technology had been successfully transferred abroad and injected into Huang’s International Investment. That morning, the team at Huang’s International Investment also finalized financing agreements with both Alibaba and Baidu. With an investment of 400 million, they secured a 67% stake in Alibaba; with 200 million, they acquired a 67% stake in Baidu. The shares in Alibaba were obtained through a combination of standard financing and private purchases from other shareholders. For instance, George used his personal connections to acquire the stake held by a Japanese shareholder at a high premium. Given the current downturn in the internet bubble, Alibaba is in a slump, making this a major bargain for Huang’s International Investment. As for Baidu, the deal was swift and decisive; it is difficult for a startup team to refuse such a significant injection of capital.

Perhaps it was a controlling interest strategy? Especially with the internet bubble burst, many internet entrepreneurs in China and abroad are feeling lost and uncertain about the future. Truth be told, Huang’s International could have easily used its financial advantage to acquire even more shares in the BAT companies, as the internet sector is currently in a deep trough. However, neither Huang Feiyang nor George had any intention of doing so.

They both understand that the true soul of these companies lies in their founding teams. If they want to retain that talent, they cannot do it without share incentives. Having a controlling interest is enough for Huang’s International.

At noon, in the first-class cabin of a flight from Guangzhou to the Imperial Capital, Chen Xiruo tilted her head and asked, "Huang Feiyang, you seem to be in a very good mood?"

Huang Feiyang nodded gently and grinned. Huang’s International Investment had successfully acquired controlling stakes in three of the future's biggest internet unicorns—how could he not be happy? Even if, for now, Huang’s International Investment is just a spendthrift—spending money without earning any—does that really matter? Huang Feiyang is focused on the future. However, he does not intend to continue injecting capital into Huang’s International Investment for the time being, as there is still over 400 million on the books—more than enough to cover expenses.

"Why?" Chen Xiruo asked curiously, staring directly into his eyes.

After a moment of thought, Huang Feiyang leaned over to her ear and whispered a brief explanation. Feeling the warmth of his breath, Chen Xiruo’s icy, beautiful face flushed red. He was doing it on purpose! That guy was absolutely doing it on purpose! She shot him a glare and gritted her teeth in secret. Aside from the two of them, the only other people in the first-class cabin were their bodyguards. Did he really have to act like that?

Regardless, the sheer scale of Huang’s International Investment’s maneuvers shocked her. A 600 million investment just like that? Three of the most prominent internet companies had been brought under their control. At the same time, she was a bit puzzled. Why was Huang Feiyang so bullish on these three specific companies, rather than investing in other industry leaders? After all, none of these three companies were currently the leaders in their respective fields.

"Huang Feiyang, just how much money do you actually have?" Chen Xiruo couldn't help but ask once she regained her composure.

"I have no idea myself!" Huang Feiyang replied with a shrug and a playful wink. There was no doubt he was talking about FY Technology, and he was being perfectly honest. Aside from the 1 billion already successfully transferred to Huang’s International Investment, there was another 2 billion in the process of being moved. He genuinely didn't know exactly how much money FY Technology held. There was no way to tell, mainly because FY Technology brings in hundreds of millions every single day.

One thing he was certain of was that his remaining 2 billion would be successfully transferred before the end of the month, and FY Technology would still have a massive amount of cash on its books. His confidence came from the sales of their three mobile phone models. Although sales had dipped slightly, they were still maintaining a daily volume of over a hundred thousand units. This was enough to bring in a massive influx of capital.

Essentially, as soon as the phones were produced by the major contract manufacturers, they were shipped all over the country. The factories were already running twenty-four hours a day, in three shifts. These manufacturers were extremely enthusiastic about FY Technology’s orders—one could even say they were filled with unprecedented passion. The main reason was that FY Technology was incredibly straightforward with payments, settling their accounts every few days. Could there be a more agreeable partner?

The same went for their suppliers. Because of FY Technology’s efficiency, they had quickly gained a loyal following of beneficiaries. Of course, everyone was only gathered together by mutual interest; Huang Feiyang knew this, and George was well aware of it too. But neither of them cared. All they needed to do was ensure that FY Technology raked in as much wealth as possible before other manufacturers could produce similar products.

They would harvest the Chinese market first, then head out into the world. When necessary, they could consider selling off some of their excess integrated chips. As for the next step, FY Technology could then consider building its own research team to develop their own phones.