Mrs. Tang looked at Mr. Tang in shock, "But this child offered 300 million..."
"I know," Mr. Tang said indifferently as he set down his phone, comforting his wife, "Do you know about Yanlong Corporation on Financial Street in the USA?"
Mrs. Tang shook her head, "I’ve heard of it, but I don’t know the specifics."
Mr. Tang explained, "Yanlong Corporation classifies its clients into six levels. Level 1 gets a 30% share, Level 2 gets 40%, Level 3 gets 60%, and so on, up to Level 6 which can reach a 100% annual return!"
"You must understand that even the entry-level 30% return rate is stronger than that of other top global fund companies. Hence, Yanlong secretly partnered with a fund company on Financial Street, which had reached $1 billion in scale."
"What they call partnership is actually making this fund company’s entire user information and managent under the control of Yanlong Corporation, even requiring the CEO of this company to be a person appointed by Yanlong!"
"Initially, they offered this company the entry-level 30% return rate and then managed it with a system that increased by one level each year."
"In the first year, when other fund companies had annual returns of less than 22%, Yanlong Corporation achieved a 30% return rate for this partner company, and its clients continued to invest in this company’s funds, even attracting clients from other companies."
"Then, in the second year, this company’s fund managent scale reached $30 billion, and the return rate offered to the clients was 40%!"
"That year, Yanlong again fulfilled its promise by distributing dividends to the clients at the agreed return rate. Consequently, those struggling fund companies couldn’t sit still anymore. One by one, they scrambled to join the Yanlong camp, even pressuring their managent to compromise internally."
"In three years, the 10 companies under Yanlong Corporation, which joined and prospered, beca the hottest fund products on Financial Street. As soon as they were released, they were almost always internally pre-sold. Not to ntion the initial third-level companies, even the entry-level companies’ products were highly sought after by the wealthy!"
Mr. Tang adjusted his glasses and said, "The reason why Thunder Group was able to turn defeat into victory recently was because of Yanlong Corporation’s involvent. You don’t realize how extensive its influence is. Let put it this way, with a clientele scattered across all of North Arica and Europe comprising the wealthiest, through this intricate chain of interests, dealing with a company whose annual profit is less than three to five billion RMB is trivial compared to the favors and influence of Yanlong Corporation."
Mrs. Tang, curious after listening, asked, "But what does this have to do with Juan spending over 300 million for a 5% stake?"
Mr. Tang smiled, "What if Tianfeng Corporation is the next Yanlong Corporation? Do you realize how valuable this initial 5% stake is?"
He analyzed, "Let’s assu Yanlong Corporation as a frawork. Suppose the company raises $100 billion annually. Then the value of the stake Juan holds would reach $5 billion. He wouldn’t even need to spend a di, as he could apply to the company to establish a level 1 entry-rate fund company. By then, there would be plenty of people wanting to buy products!"
"Dragon Nation is a society driven by human relations. He could use his share to manage and create value for many wealthy individuals in his circle. At that ti, the Tang Family’s stature couldn’t compare to now relying solely on Tangchen."
"Why does no one dare touch Yanlong Corporation’s Daniel Liu? Because all the wealthy do not wish him harm. In their eyes, the guy is a money god!"
Hearing his father outline the complex layers of interests, Juan was greatly shocked.
He hadn’t thought it through to this extent, only knowing that with this share he could make money, but he hadn’t considered that it was also a major killer weapon in the social capital circle!
Like Guo Yunfan’s grandfather, Mrs. Tang voiced her doubts, "But can the returns really be that high?"
"Yes!" Juan’s eyes lit up, "The specific amount we have internal strict agreents about, which I can’t reveal, but even after deducting shares for these people, I wouldn’t even need to spend a penny and could still use their money to generate inco for myself!"
"Absolutely," Mr. Tang said. "Yanlong has established six levels, with the top capable of offering up to 100% annual return rate to Level 6 users, indicating they have a huge margin for profit."
Mrs. Tang looked at her son, "Then what if six years later, your company must upgrade to Level 6? If you have to offer 100% return rate to all clients by then, would you still make a profit?"
These words focused Mr. Tang’s gaze on his son, Juan.
Only Juan knew, each operation’s return rate was over 200%!
He looked mysteriously at his parents, "I still have profits to make!"
Boom!
Mr. Tang was invigorated, "You still have profits to make?"
Juan himself got excited, "Definitely!"
If he really had to offer the highest Level 6 return rate of 100% to those clients in the future, he still had at least an extra 50% in profits.
And from another perspective, those users who had struggled with him up to Level 6 would only beco more devotedly loyal to him!
There was a mont when Juan understood why Yanlong Corporation was so formidable!
If you can create benefits, then you are the one who sets the rules!
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