Chapter 113: Hidden Value
“President Yu, please sit down.” Qi Yu raised his hand and beckoned the waiter to come over, “What would you like to drink?”
After taking her seat, Yu Lian said, “Let’s have a Negroni.”
After the waiter left, Yu Lian said, “I’m sorry, when we parted at the bamboo forest manor last time, I said I would find an opportunity to chat with you in the future. But I heard that you’re still studying abroad, so I never found an opportunity.”
Qi Yu: “It’s fine.”
Yu Lian stroked her hair: “Actually, when I heard Chief Ye say just now that you wanted to talk with me, I was also a little surprised. I thought you…”
Seeing that the other party hesitated to speak, Qi Yu followed her words and took a guess, “You thought I wasn’t very involved in the business?”
Yu Lian smiled and asked, “So I misunderstood?”
Qi Yu didn’t take it to heart and simply continued, “Since I’ve taken this position, I will try my best to fulfill this responsibility. As for Si Yuan’s intention to acquire Blooming Lotus, logically speaking, it should have been Chief Si and I who should be negotiating with you. It’s just that the Chief Si is busy with his personal affairs and I am worried that given my low status, my words might not carry much weight so I usually let Chief Ye speak for me… Just now, Chief Ye called me and said that you are not satisfied with Chief Si’s offer? ”
“If Chief Ye had just told me the price earlier, we wouldn’t have had to waste so much time.”
It seemed that Yu Lian hadn’t managed to completely calm down. Even though she adjusted her mood a bit as she headed downstairs, when she had said those words to Chief Ye, She had already planned for the worst in her heart. In front of Qi Yu, she was no longer appeared as gentle and good-natured as before.
Qi Yu nodded. “Since we’ve come this far, why don’t you also tell me about your final price.”
Yu Lian intertwined her fingers and said, “170 million, but this is just my personal bottom line price. Yan Xiu’s is 190 million. If I can sell it at this price, when it comes time to divide the payment with Yan Xiu, I’ll pay her for her share as though it were sold at 190.”
Qi Yu secretly thought that this Yu Lian greatly valued relationships and righteousness.
He said, “Last year, we conducted several rounds of valuation for Blooming Lotus and set its total value at 268 million. President Yu and President Yan only have 53% of Blooming Lotus’ stock, which is 142 million. If we were to completely based it on the stock price and the evaluation of professional pricing analysts, the company’s 140 million offer is indeed not outrageous.”
Yu Lian frowned lightly: “If Chief Qi is also of the mind that the price quoted by Chief Si is reasonable, why have me come down here to talk to you?”
Qi Yu paused and said: “A commodity, in addition to its own tangible assets also has hidden value that is not easily seen. Professional teams in the market are trying to standardize asset pricing as much as possible, but if all commodities could be valuated so easily, investing in this industry would be risk-free and predictable. A teacher told me that a successful investor must be able to tap the hidden value of commodities that others cannot find and promote its commercialization……”
At this time, the server brought their Negroni Yu Lian ordered.
Qi Yu raised his glass and clinked it against the other’s glass. “I still remember, when we first met, President Yan offered to sell your combined 53% shares for 250 million?”
“En…” Yu Lian took a sip of wine and continued to listen to him.
Qi Yu: “I was thinking before, since you quoted this price, maybe in your hearts, Blooming Lotus still has a value that we cannot see. In fact, just from the name of the company, I can already feel the importance that your and President Yan place on it. Otherwise you wouldn’t be so angry today because Chief Ye offered you a price of 140 million, right?”
We’re sorry for MTLers or people who like using reading mode, but our translations keep getting stolen by aggregators so we’re going to bring back the copy protection. If you need to MTL please retype the gibberish parts.
Yu Lian’s hand holding the wine glass tightened involuntarily.
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When Qi Yu said “Treat this company as if it were your own child”, Yu Lian’s eyes had turned red.
When facing Ye Qinru just now, although Yu Lian felt angry and humiliated, she did not feel sad. But when she heard Qi Yu say “reluctantly give up”, she actually burst into tears.
The woman in front of him blinked fiercely, trying her best to hold back her tears.
“Given Chief Qi’s young age, I didn’t expect that you would consider matters so carefully.” She did her best to hold back for a while, but she couldn’t manage it. She took out a tissue and quickly dabbed at her eyes. “I’m sorry, but I really didn’t expect for you to stand in our shoes and think over this problem…Your words got me reminiscing and I’ve not made a fool of myself in front of you.”
Qi Yu clinked his glass against hers again, using this simple gesture to resolve Yu Lian’s embarrassment.
Yu Lian sighed lightly. She stared at the rose-colored wine in the glass and told the story of how she and Yan Xiu created “Blooming Lotus”.
She started from her encounter with Yan Xiu in France. She talked about what they had learned, seen, heard, and felt; how they discovered that there was business opportunity in being a purchasing agent for luxury goods; how they formalized this idea.
“…During those two years, Yan Xiu and I worked as purchasing agents while studying. In order to make some money, we researched the pricing and discount seasons of almost every product. We went to the stores every weekend to learn about the discounts of brands…”
“Once we accidentally learned of an outlet store near a small town in southern France who regularly sold many big-brand products at a 50% discount. We contacted the designated agent and learned that the city had many tourists from developing countries. In the name of ‘brand culture promotion’, the big brands would give some agents very big discounts… So what did this mean? It showed that luxury goods also needed a bigger market.”
“We all know the luxury goods come at a premium, but it cannot be denied that many girls’ hearts still need these things to feel satisfied. Especially certain young girls who work in big cities; living in such a high-pressure environment, owning a famous brand name bag, a pair of shoes from a big brand, or a luxury brand necklace – I don’t mean imitations, but the real thing – can make them feel confident and more cheerful when they go out. It can will also make them study harder, try better in life… Yan Xiu and I are like this too. We entered this industry because of the same mentality. I still remember the joy I felt when I bought a pair of big-name high-heeled shoes that I liked for a long time at a low price…”
“In order to let more girls feel the same feeling we had, we set up ‘Blooming Lotus’. We tried to find those big brand businesses and tried our best to impress them. We persuaded them and in the name of ‘brand promotion’, managed to get a limited number of low-priced items. When Blooming Lotus was at its craziest, bags that were worth 10000 yuan but they were giving to us for 3000, we could get a hundred pieces of to put up on the platform. When we deducted manpower and other costs, we ourselves only earned maybe five percent…”
“Those two years were the hardest, but we felt very happy, especially when we saw the feedback and gratitude from customers after receiving the goods. The exhuastion we felt seemed worthwhile. Moreover, because we started with luxury goods from the very beginning, we immediately captured the hearts of young middle-class women in China. So during those two years, Blooming Lotus accumulated a large number of high-quality customers…”
Qi Yu nodded and said, “This is also what attracted us to Blooming Lotus.”
Yu Lian sighed: “After that, Yan Xiu and I were no longer satisfied with being just purchasing agents for foreign luxury goods. We began to want to produce our own products, build our own brand…”
Qi Yu commented, “This idea is also reasonable.”
Yu Lian: “At that time, there were many people who wanted to invest in us. Our mind was blown by how much attention the investors were giving us. And we too were anxious to develop, so we chose Ark Investment, who paid the most money. Ark Investment directly took away 30% of the shares from us. They demanded that we revise the company’s articles of incorporation and increase the management authority of the new shareholders. Afterwards, they sent two senior corporate development personnel over but Yan Xiu and I had great disagreements with them. We originally planned to start with just making small things, like maybe a necklace or a pair of shoes to test the water. We wanted to create a signature product. But the new managers felt that the efficiency of this test was too low, and more new businesses needed to be developed. They also said we needed to get listed as soon as possible, otherwise we would have no advantage at all when the major e-commerce companies open overseas shopping. Frankly speaking, Yan Xiu and I never planned on making an online wardrobe at all. A lot of people were already doing it and we didn’t think there would be any meaning to doing the same type of things… Yan Xiu and I listened to so many different suggestions during that time. Every day, there were people denying our ideas, telling us ‘no’. There was even a time when we began to doubt whether we merely succeeded out of luck and if the only thing we were capable of was being purchasing agents…”
Qi Yu said thoughtfully, “You and Yan Xiu were idealistic but not firm enough in your own ideas.”
Yu Lian smiled wryly, “You’re right, she and I lacked experience in planning a company’s long-term development. We were shaken with just a few words from others and unknowingly made a lot of compromises. The company has gone through several rounds of fundraising, its grown a lot in scale and Yan Xiu and I have become more and more valuable but we’re becoming more and more powerless and unhappy. Last year, the company went public, but Blooming Lotus was no longer the original Blooming Lotus. We felt like just anyone could come and dictate the development of the company. In addition, our company’s stock price has been falling since the listing. Friends around us saw that we were working so hard and they persuaded us to let it go, to sell Blooming Lotus while it still had some value…”
When she said this, her eyes turned a little red again.
Qi Yu asked back, “So you want to sell it? What about after you sell it?”
Yu Lian shook her head: “I don’t know, maybe I can find something else to do with Yan Xiu. Next time, we will do only what we want to do.”
After being silent for a while, Yu Lian added, “Actually, near the end of last year, when Chief Ye, on behalf of the Si Yuan Group, contacted us. I was very happy, because I have always liked the brand Mei Wei.”
Qi Yu: “You like Mei Wei?”
“Well, although something happened with Mei Wei last August, Yan Xiu and I both think that Mei Wei is the most dilligent of the domestic luxury clothing brands. When Yan Xiu and I wanted to start our own a brand, we set Mei Wei as our goal… Later, I heard that Si Yuan’s acquisition of Blooming Lotus is to build a platform for several of its brands. I think that this is the best destination for Blooming Lotus. In your hands, Blooming Lotus would change for the better…” Yu Lian lowered her eyes and smiled lightly, “But it’s hard to say whether it can be sold now. Because the price is too low, during this period, Yan Xiu and I have been constantly arguing about it. She’s always felt unreconciled. And while I’ve said so much already, I don’t think of any hidden value worth unearthing that the current Blooming Lotus has. If you think Blooming Lotus is not worth the price then I don’t want to force it any more.”
Qi Yu let out a breath and said solemnly, “President Yu, you may have underestimated yourself a bit.”
Yu Lian was stunned for a moment and raised her eyes slightly in surprise.
Qi Yu smiled: “Was Blooming Lotus’ success really just luck? Ask yourself, in this day and age, there are so many good clothes and shoes, and there are so many people who buy and sell discount goods and yet why do all these people insist on buying from Blooming Lotus?”
Yu Lian was dumbfounded. Even though she was Blooming Lotus’ founder, it was she who unexpectedly wanted to ask Qi Yu this question.
Qi Yu: “I’ve seen Blooming Lotus’ slogans. From the first, ‘Letting every ordinary girl have access to luxury goods’, to ‘I can buy my own shoes, do I still need you?’ and ‘With my beloved bag on my back, all of today’s worries have dissapeared.’… These words, you came up with them, right?”
Yu Lian nodded: “I thought those up. But any random product planner can come up with these, right?”
Qi Yu: “Were these also the denials given to you by those ‘any random’ people?”
Yu Lian: “…”
Qi Yu explained: “Chief Ye once said that you are a young woman of literature and art. I didn’t think much of it before, but after hearing you say all these things today, I realized that it may be because of your softness and sensibility, your resonance with those girls, that allowed them to have a kind of emotional connection with Blooming Lotus’ platform. So even now that Blooming Lotus’ stock price is falling, even if you say that Blooming Lotus is no longer the Blooming Lotus of the past, those customers still maintain their loyalty to this platform… My teacher and I have analyzed it, and this is what distinguishes Blooming Lotus from other companies. In fact, the greatest hidden value behind Blooming Lotus is you.”
Yu Lian’s eyes flickered. All the moodiness in her heart just now dissipated completely with Qi Yu’s words.
Moreover, Yu Lian seemed a little embarrassed being praised by a handsome young man so much younger than herself. She instinctively changed the subject, saying, “Your teacher…is he your teacher at Stanford?”
Qi Yu coughed lightly. “No, he’s the one you saw when you came here.”
Yu Lian smiled and said, “It’s Chief Fu…”
Qi Yu paused for a moment and continued, “If I weren’t sitting in the position I am today, I might have encouraged you and President Yan to continue on with this company. But I’m sorry, for the development of the group, I still wish to acquire Blooming Lotus. You said just now that the minimum prices you and President Yan are willing to accept are 170 million and 190 million?”
Yu Lian: “Yes…”
Qi Yu: “A compromise, 180 million. What do you think?”
Yu Lian’s eyes lit up, she raised her glass and said, “This is acceptable.”
Qi Yu clinked glasses with her. “But I have a condition.”
Yu Lian was stunned: “What?”
Qi Yu: “I understand your feelings for Blooming Lotus and you must be reluctant to part with this company that you treasure. But the Si Yuan Group is going for absolute control, so it is impossible to let you keep shares. Even after getting your 53%, we may still continue to acquire shares from Ark Investments.”
Yu Lian: “I understand.”
Qi Yu: “However, after Si Yuan acquires Blooming Lotus, it will be necessary to integrate Blooming Lotus and the Si Yuan Group’s brands including Mei Wei, Snow Lotus, Lovme Jewelry, etc., the culture of these different brands will be displayed on the platform. I hope you can come and stay to do this part of the planning work.”
Doing integration planning for Mei Wei and Blooming Lotus? Yu Lian was floored by the meat pies that Qi Yu kept throwing at her one after another: “No problem!”
After agreeing did she return back to her senses and asked, “But didn’t Chief Ye just say that you can’t just bypass Chief Si and negotiate with me about the price?”
Qi Yu: “Yes, the 40 million I added to you is for a hidden value that I personally identified. However, the company may not agree with this at all, so these are just my verbal promises to you for the time being, in order so that I may do my best to help you achieve this 180 million, I may need your cooperation to do some things next.”
Yu Lian: “…”
【Little Theater】
Yu Lian: 140 million is too low.
Qi Yu: I will give you 180 million.
Yu Lian: They all said we couldn’t.
Qi Yu: You can do it.
Yu Lian: I’m a fan of Mei Wei.
Qi Yu: When I buy Blooming Lotus, you can stay with us in Mei Wei.
Yu Lian: I love Chief Little Fish! (≧▽≦)/
Qi Yu: But this price doesn’t count if it’s my word alone. In a little bit, why don’t we put on a little show together? Let’s trick that stupid partner of mine?
Yu Lian: I have never seen a bankroller daddy quite like this before… I love Chief Little Fish! (≧▽≦)/
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Translator’s Note:
Chapter 113 is a pretty long chapter so I had to divide it into two. Unfortunately, there wasn’t really any good point to cut the chapter except here which means that tomorrow’s chapter is going to be a little short (but pretty interesting!!! So stay tuned.)
PS: Guys, guys, guys. I need you to check out Fulgur Ovid, Nijisanji vtuber, newly-debuted and 2ha fan (along with a bunch of other danmei and BL). Like what???? Just go on youtube, check out his intro 2.0. His taste in books and movies is awesome.
Interesting start to the week.
Thank you for the chapter !! Love this book sooooo much 🙂 and can’t wait for the remaining of this chapter tomorrow 🙂 I will definitely go take a look at this vtuber!
Can’t wait to see Chief Little Fish’s show tomorrow 😆
UWAHHHH A VTUBER FAN 🥰🥰🥰 Yes fulgur is hot, but my fav is totally sonny hehe. Niji fan 🥳🥳🥳
thanks for the chapter!
I know fuu~chan ! He used to have an old YouTube channel back then it was danmei only , he watched , read and made reviews to alot of danmei (svsss,mdzs, tgcf ,2ha ,bab,etc) .. sadly he deleted it but he still have a channel on bilibili all his old vids are there you can look it up it’s called Cu的动画Review
Giving Lotus jiejie a big warm hug (and hope that Blooming jiejie won’t be coming to hit me. It’s just a friendly hug. I’m not stealing your gf ah~ lol)