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Chapter 1110 - The Shareholders Suspicions
Chapter 1110 - The Shareholders Suspicions
Chapter 1110: The Shareholders’ Suspicions
Wen Xinya slowly returned to her seat and fiddled with her tassel earrings with her slender fingers that were long and fine like jade. The black orchids dangled around her fingers playfully.
In Capital city, Jiayuan Club was well known amongst the rich and it was no secret that they had a secretive background.
Everyone also knew that Jiayuan Club was closely related to the Gu Family.
She used Gu Junling to reasonably bring up the topic of Jiayuan Club.
Although everyone knew that the entertainment city was lucrative, no one truly understood the industry. Since a large amount of funds had to be invested during the initial stages of the development, the shareholders would definitely be hesitant about forking out the money. The shareholders would obviously be glad to have the Jiayuan Club’s budget plan as a form of reassurance.
She indeed did not have a better solution to stop the entertainment city project from proceeding. Hence, she decided to let the shareholders see clearly that the Wen Corporation did not have enough resources to support the construction of the entertainment city project in a bid to make them drop the idea.
Wen Haowen knew that Wen Xinya was bent on stopping the entertainment city project from proceeding. Hence, he obviously wasn’t interested in the document and thus, simply skimmed through it before closing it. Slamming the file against the table, he hollered. “Wen Xinya, don’t think that you can fool us with a simple document.”
Wen Xinya said calmly, “I’m sure all the shareholders here can tell whether or not I’m fooling you.”
Refusing to budge, Wen Haowen continued, “Wen Xinya, quit being ridiculous. Everyone knows that Jiayuan Club has a secretive background. How could you have possibly managed to get ahold of their budget plan? How can you prove that this is really the Jiayuan Club’s budget plan?”
The shareholders had those doubts too.
Wen Xinya answered coldly, “Actually, Jiayuan Club has already revealed this information to the public. You guys may compare the data with the information available on the Jiayuan Club’s official website. Besides... this is a reasonable piece of information that is genuine and can be verified easily. You just have to look for a lawyer to verify it and get some professionals to conduct an analysis. We have these resources right at the Wen Corporation.”
Wen Xinya’s response was much more valid and reasonable compared to Wen Haowen.
Wen Haowen was dumbfounded and at a loss for words.
The shareholders had already believed Wen Xinya.
After all, Old Mr. Wen clearly supported Wen Xinya and they definitely couldn’t doubt him.
Wen Xinya said, “According to the entertainment city proposal, it is twice as large as the scope of Jiayuan Club’s development. The initial fund that was required by Jiayuan Club was 500 million yuan, and the subsequent investments amounted to a total of 2 billion yuan.”
The shareholders were rather daunted by the numbers written in red. 2 billion yuan... The Wen Corporation only had a total of 1 billion yuan in liquid assets. If they were to really develop the project, they would definitely have to touch the Wen Corporation’s foundation.
At this moment, Wen Haowen again interjected. “That may be the case, but we all know that Jiayuan Club is the top entertainment joint in the city and the management model is different. We’re not going to make it a luxurious entertainment city. How could you compare us to them?”
The shareholders nodded in agreement with Wen Haowen.
Wen Xinya said, “There is a concrete plan for the entertainment city’s management, and it’s set to be a midscale entertainment city. Please take a look at page four of the document that I’ve just distributed to everyone. There is a comparison that I’ve drawn against Jiayuan Club’s entertainment joint.”
The shareholders hurriedly flipped through the pages.
Wen Xinya smiled and said, “The first thing we have to consider is whether or not the land on which the entertainment city is to be built has been approved by the government. The plot of land that we’re planning to use cannot be bought over from the government and we have to purchase it by discussing with the owner and coming to an agreement. We’ll also have to put in a lot of resources, manpower, and money. We might even get into a real estate conflict.
“I’ve found out the price of bidding for development land in Capital city in the past few years, and compared them to the plot of land we’re planning to use for the entertainment city. If we bid for land, we might be able to purchase it at a price of 200 million yuan. But if we were to negotiate with the owner ourselves, I’m estimating that we’ll spend more than 300 million yuan.”
The shareholders could understand Wen Xinya’s analysis.
Wen Xinya continued, “Next, the construction costs are over the budget and the total cost is estimated to be above 1.5 billion yuan.”
Everyone was astonished after hearing her words.
The shareholders were no fools and definitely knew which proposal was more convincing.
The shareholders actually knew that the prices reflected in every proposal would deliberately be made to seem more favorable, so as to earn the approval of the shareholders. Once the funds were invested, they would have no choice but to continue supporting the project and investing more money so as to allow the project to be completed. Otherwise, they would not be able to reap greater benefits.
Clearly, it was the same for the entertainment city proposal.
Noticing the sullen expressions on the shareholders’ faces, Wen Haowen barked. “Nonsense. It clearly states in the proposal that the total estimated cost is only 1 billion yuan. Wen Xinya, you actually resorted to lying to the shareholders just so you could stop the project. What thoughts are you harboring?”
Wen Haowen would never believe that Wen Xinya’s analysis was real. To him Wen Xinya was just resorting to despicable means to stop the project from proceeding.
He would never let Wen Xinya get what she wanted.
Little did he know, the shareholders took his anger to be an expression of his guilty conscience. In order to get their support, he had indeed falsely minimized the budget for the entertainment city.