Chapter 28: Capital Infusion
Translator: Kim Guo Editor: Tehrn
In fact, although Xinye Company still operated well, it was suffering a cash shortage when it
tried to expand its business. Specifically speaking, it had had this problem since its
establishment, which was getting severer after it had purchased Lianyou Company.
Shanghai Xinye Company had bought out nearly 10 firms that were all bigger than it during the
five years since its start, making its equity structure complicated. Huang Xuan’s capital
infusion plan drew the company’s attention immediately.
Actually, the president of the board, Yu Liye, who owned 68% of the company’s shares, had long
known Huang Xuan’s identity—the first born son of the Huang Family in Nanjing, yet somehow
he didn’t tell Gan Lizheng.
The outcome of the meeting embarrassed Gan Lizheng, but it didn’t affect the judgment of the
company.
The next day at noon, Yu Liye and four other directors came to the Sheraton Hotel in Nanjing.
Although both the new code programs and the 12 million were important for them, what had
dragged them there was Huang Xuan’s identity. It would be good even if they could just
establish a little bit of connection with the family. On the other hand, although Huang Xuan
wasn’t interested in managing a company, he was hoping to find a good excuse to spend his
money in case his mom took it away from him again. A company with a great potential and
running well was satisfactory enough.
More importantly, Rolin was intrigued by it; his exact words were “I’ve heard of this company”,
which sufficed for Huang Xuan.
The talk was conducted with a friendly and relaxed atmosphere. Yu Liye’s first sentence was
“Welcome Mr. Huang Xuan to the board of Xinye Company.” The rest of the negotiation was all
about enhancing friendship.
Yu Liye was over 60 years old and graying at the temples. It was rare for such an old man to
operate a high-tech software company, at least so in China. However, although he knew little
about computers, he knew people and management. From the history of Xinye Company, it
could be seen that purchasing and luring were Yu Liye’s main means: he purchased other
companies, programs written by other people and even lured other companies’ best employees.
Thanks to that, the old man who barely knew anything about software had become a member of
Chinese software industry.
Yu Lixin’s business means were disgraceful but clean. After having read Rolin’s materials,
Huang Xuan drew this conclusion and became cordial. Just like what his family had said,
business was not about grace. If commercial morality had to be discussed, “clean” would be the
highest praise.
The other directors were of the same age as Gan Lizheng and used to be technicians. They
complimented Huang Xuan non-stop on his programs. Huang Xuan felt a little awkward and
couldn’t respond because he couldn’t even understand the notes to the programs, not to
mention talking with people about them. Since the only thing Rolin knew was reading
materials, and he made a ton of mistakes when it came to flexible questions, his help wouldn’t
mean much at this point.
Huang Xuan had to open a conversation with Yu Liye. He used to think that he wouldn’t be able
to talk business like his mom or uncles until he was in his thirties. He hadn’t expected that it
could be realized so early, so he was satisfied. Huang Xuan drank a cup of tea and couldn’t help
asking, “Mr. Yu, what do you think of my proposition?”
“Basically, no problem,” Yu Liye said with a smile, making people relax. “but since there are a lot
of shareholders in our company, the part concerning stock ownership needs revision.”
“How?”
“21% of the shares and 50% of the first year’s profit from the programs.”
“I’m afraid nobody would buy the programs within the first year,” Huang Xuan thought.
The programs’ specialty didn’t lie in how safe the code was but in the coding. The code hadn’t
been designed with mathematical or physics puzzles (like quantum code) but solely with coding
programs. As long as the reference object was set, for example, apples, the program would use
the set quotation to assemble a data bank which would form a public key that could be
disclosed; a series of numbers from the bank would form a private key that could be kept only
by the individual. Furthermore, the quotation was random. Since the private key permutation
was from one of the public keys, theoretically, the more complex the data bank was, the more
permutations there would be, and thus, the code would be safer. The individual could either just
choose the shape of the apples or the DNA of some apple. The individual’s needs would
determine the data bank.
This thought was totally different from the programs used before. In the time Huang Xuan
lived in, besides the security, simplicity was also necessary for codes. However, this program
ignored it, and users were allowed to set codes of different levels. In addition, since both the
data bank and the number of reference objects were theoretically limitless, no matter whether
it was a cup, an apple, a satellite, the moon, or a thought, it could all become a reference object
and form a data bank. Meanwhile, since the data bank only worked on the issue of matches
forming a random quotation, the public key wouldn’t recognize the content of the private key.
Even if an individual had tried every quotation, all he or she could get was the data bank but not
the private key. Therefore, the old cracking means would be outdated. Many programs had
claimed that they wouldn’t be cracked within tens of years even by supercomputers. However, a
modern computer could catch up with a supercomputer of the time within several years, which
meant that the estimated time to crack the program was pointless while the content supposed
to be secret was disclosed much earlier. Now, with the programs Rolin had offered, all these
problems were avoided.
“This is a thought fifty years ahead of the time,” Gan Lizheng said simply.
“You are right,” Huang Xuan thought.
Huang Xuan pondered it over and then said slowly, “24% of the shares and 30% of the profit in
the 10 years to come.”
Prolonging the period of a steady investment was a secure strategy that would reduce the
returns as well as the risks. Apparently, Yu Liye knew about this. He thought about it for a long
while and replied, “24% of the shares is fine, but I can only give you the commission of the
profit in the first three years at most and 35%, no more. Otherwise, the other shareholders will
get upset...”
The other directors nodded one after another. Huang Xuan shrugged and said, “OK.” He had
sold the programs twice. No matter how valuable they were, he was satisfied. Rolin was around,
anyway.
Chapter 28: Capital Infusion
Translator: Kim Guo Editor: Tehrn
In fact, although Xinye Company still operated well, it was suffering a cash shortage when it
tried to expand its business. Specifically speaking, it had had this problem since its
establishment, which was getting severer after it had purchased Lianyou Company.
Shanghai Xinye Company had bought out nearly 10 firms that were all bigger than it during the
five years since its start, making its equity structure complicated. Huang Xuan’s capital
infusion plan drew the company’s attention immediately.
Actually, the president of the board, Yu Liye, who owned 68% of the company’s shares, had long
known Huang Xuan’s identity—the first born son of the Huang Family in Nanjing, yet somehow
he didn’t tell Gan Lizheng.
The outcome of the meeting embarrassed Gan Lizheng, but it didn’t affect the judgment of the
company.
The next day at noon, Yu Liye and four other directors came to the Sheraton Hotel in Nanjing.
Although both the new code programs and the 12 million were important for them, what had
dragged them there was Huang Xuan’s identity. It would be good even if they could just
establish a little bit of connection with the family. On the other hand, although Huang Xuan
wasn’t interested in managing a company, he was hoping to find a good excuse to spend his
money in case his mom took it away from him again. A company with a great potential and
running well was satisfactory enough.
More importantly, Rolin was intrigued by it; his exact words were “I’ve heard of this company”,
which sufficed for Huang Xuan.
The talk was conducted with a friendly and relaxed atmosphere. Yu Liye’s first sentence was
“Welcome Mr. Huang Xuan to the board of Xinye Company.” The rest of the negotiation was all
about enhancing friendship.
Yu Liye was over 60 years old and graying at the temples. It was rare for such an old man to
operate a high-tech software company, at least so in China. However, although he knew little
about computers, he knew people and management. From the history of Xinye Company, it
could be seen that purchasing and luring were Yu Liye’s main means: he purchased other
companies, programs written by other people and even lured other companies’ best employees.
Thanks to that, the old man who barely knew anything about software had become a member of
Chinese software industry.
Yu Lixin’s business means were disgraceful but clean. After having read Rolin’s materials,
Huang Xuan drew this conclusion and became cordial. Just like what his family had said,
business was not about grace. If commercial morality had to be discussed, “clean” would be the
highest praise.
The other directors were of the same age as Gan Lizheng and used to be technicians. They
complimented Huang Xuan non-stop on his programs. Huang Xuan felt a little awkward and
couldn’t respond because he couldn’t even understand the notes to the programs, not to
mention talking with people about them. Since the only thing Rolin knew was reading
materials, and he made a ton of mistakes when it came to flexible questions, his help wouldn’t
mean much at this point.
Huang Xuan had to open a conversation with Yu Liye. He used to think that he wouldn’t be able
to talk business like his mom or uncles until he was in his thirties. He hadn’t expected that it
could be realized so early, so he was satisfied. Huang Xuan drank a cup of tea and couldn’t help
asking, “Mr. Yu, what do you think of my proposition?”
“Basically, no problem,” Yu Liye said with a smile, making people relax. “but since there are a lot
of shareholders in our company, the part concerning stock ownership needs revision.”
“How?”
“21% of the shares and 50% of the first year’s profit from the programs.”
“I’m afraid nobody would buy the programs within the first year,” Huang Xuan thought.
The programs’ specialty didn’t lie in how safe the code was but in the coding. The code hadn’t
been designed with mathematical or physics puzzles (like quantum code) but solely with coding
programs. As long as the reference object was set, for example, apples, the program would use
the set quotation to assemble a data bank which would form a public key that could be
disclosed; a series of numbers from the bank would form a private key that could be kept only
by the individual. Furthermore, the quotation was random. Since the private key permutation
was from one of the public keys, theoretically, the more complex the data bank was, the more
permutations there would be, and thus, the code would be safer. The individual could either just
choose the shape of the apples or the DNA of some apple. The individual’s needs would
determine the data bank.
This thought was totally different from the programs used before. In the time Huang Xuan
lived in, besides the security, simplicity was also necessary for codes. However, this program
ignored it, and users were allowed to set codes of different levels. In addition, since both the
data bank and the number of reference objects were theoretically limitless, no matter whether
it was a cup, an apple, a satellite, the moon, or a thought, it could all become a reference object
and form a data bank. Meanwhile, since the data bank only worked on the issue of matches
forming a random quotation, the public key wouldn’t recognize the content of the private key.
Even if an individual had tried every quotation, all he or she could get was the data bank but not
the private key. Therefore, the old cracking means would be outdated. Many programs had
claimed that they wouldn’t be cracked within tens of years even by supercomputers. However, a
modern computer could catch up with a supercomputer of the time within several years, which
meant that the estimated time to crack the program was pointless while the content supposed
to be secret was disclosed much earlier. Now, with the programs Rolin had offered, all these
problems were avoided.
“This is a thought fifty years ahead of the time,” Gan Lizheng said simply.
“You are right,” Huang Xuan thought.
Huang Xuan pondered it over and then said slowly, “24% of the shares and 30% of the profit in
the 10 years to come.”
Prolonging the period of a steady investment was a secure strategy that would reduce the
returns as well as the risks. Apparently, Yu Liye knew about this. He thought about it for a long
while and replied, “24% of the shares is fine, but I can only give you the commission of the
profit in the first three years at most and 35%, no more. Otherwise, the other shareholders will
get upset...”
The other directors nodded one after another. Huang Xuan shrugged and said, “OK.” He had
sold the programs twice. No matter how valuable they were, he was satisfied. Rolin was around,
anyway.
