OBS Chapter 608 Weaving an even bigger net
Chapter 608 Weaving an even bigger net
Li Xiangyang spread the contract out on the table, his fingers tracing the seemingly generous terms. The food factory owner leaned closer, cold sweat beading on his forehead: "They said that as long as we signed the contract, they would help us expand our production line within three months and even send experts to provide guidance—now it seems that these 'experts' are probably here to take over the factory, aren't they?"
“It’s not just a takeover.” Ma Laosan pointed with his cigarette butt at the “Equity Adjustment Agreement” in the contract appendix. “Look at this fine print: ‘If Party B fails to meet its performance commitments for two consecutive quarters, Party A has the right to increase its shareholding at 70% of the net asset value.’ But the performance targets are set higher than the industry ceiling. Isn’t this forcing you to breach the contract?”
The timber merchant suddenly slapped his thigh: "That's right! Zhao Ming from Dongfang Trading mentioned casually when he came to discuss cooperation last time that their 'head office was dealing with a batch of idle factory buildings.' Now that I think about it, they might be those factories that were acquired by Tianhua Industry!"
The air was thick with the acrid smell of paper and tobacco. Li Xiangyang suddenly remembered the Hong Kong businessmen mentioned by Master Sun, and then thought of Tianhua Industry's Hong Kong capital background. An idea formed in his mind: "They use different trading companies as shells, Wufu Trading, Dongfang Trading... Tianhua Industry is behind them all. First, they lure you into signing contracts with high terms, then they use contract traps to erode your equity, and finally they sell the whole thing to a Hong Kong-based group—this is a typical 'capital strangulation' tactic."
Wang Ergou suddenly stood up: "Then we need to tell the other bosses quickly, so they don't fall into the trap!"
“That’s not enough.” Li Xiangyang picked up the business card of Dongfang Trading, his fingertips tracing the name “Zhao Ming.” “We need evidence. For example, the financial transaction records between Dongfang Trading and Tianhua Industry, or their internal operating procedures.”
Ma Laosan stubbed out his cigarette, his eyes gleaming: "I have an old classmate in the provincial capital who works in auditing. Maybe he can find some loopholes in the financial statements. However..." He paused, "a group the size of Tianhua Industry must have very well-kept accounts, so it won't be that easy to check."
“Let’s start with Zhao Ming.” Li Xiangyang looked at the timber boss. “Do you remember Zhao Ming’s contact information? Could we arrange another meeting with him to discuss cooperation, and set up a trap?”
The timber merchant looked troubled: "But I already rejected him before, wouldn't it be too suspicious to go on another date with him?"
“That’s easy.” Li Xiangyang’s lips curled into a cold smile. “Just say you’re having some cash flow problems lately and you’ve heard they have an ‘emergency financing channel,’ so you want to discuss the details. Remember, be ‘soft’ in your attitude, but don’t agree to sign the contract.”
That night, Li Xiangyang drafted a "false demand list" overnight and had the timber boss give it to Zhao Ming. The list included "urgent need for 500 million yuan in working capital", "use the factory building as collateral", and "hope for loan disbursement within a week"—these conditions seemed urgent, but in fact they concealed a hidden agenda: legitimate financial institutions would not approve large-scale mortgage loans in a short period of time, and if Dongfang Trade dared to agree, there must be something fishy going on.
The next afternoon, the timber boss called, his voice filled with excitement: "Xiangyang, it's done! Zhao Ming said they have 'special channels' and asked me to go to the Hyatt Hotel in the city tomorrow to discuss the details. He also said there will be a kickback after it's done."
“Hyatt Hotel…” Li Xiangyang’s eyes narrowed. That was Tianhua Industry’s local headquarters. He turned to Ma Laosan and said, “Third Brother, take two men to keep an eye on the area around the hotel tomorrow. Take pictures of license plates and people coming and going. Er Gou and I will go and meet this Zhao Ming.”
Wang Ergou rubbed his hands together, eager to get started: "Should we bring some 'weapons'? Just in case they try something..."
“No need.” Li Xiangyang took out a voice recorder from the drawer. “What we need is evidence, not conflict. Remember, when you meet him, don’t confront him head-on. Go along with what he says and record his ‘special channels’ and ‘kickbacks’.”
Meanwhile, at the Hongda Machinery Factory on the other side of the county, factory director Chen Jianguo was frowning deeply over a "technology cooperation agreement." The "Southern Technology Research Institute" seal on the agreement was bright red, but the clause requiring "unconditional opening of core technology patents" sent chills down his spine. He grabbed the phone and dialed the contact number Li Xiangyang had left the night before: "Hello, is this Director Li? It seems I've run into some 'trouble' too..."
On the other end of the phone, Li Xiangyang's voice was steady and strong: "Director Chen, don't worry. Tomorrow morning, we'll have our first meeting at the county industrial association. Please bring the agreement, and we'll analyze it together."
As night deepened, the light in Li Xiangyang's office remained on. He spread out a sheet of white paper and wrote down the keywords "Tianhua Industry," "Hong Kong capital background," and "contract trap," connecting them one by one with arrows. Wang Ergou leaned over to look: "Xiangyang, what kind of formation are you drawing?"
“It’s not a formation, it’s a net.” Li Xiangyang paused with his pen. “Tianhua Industry wants to cast a wide net to catch fish, so we’ll weave an even bigger net to catch their tricks, evidence, and all the companies that might be harmed.”
In the conference room on the seventeenth floor of the Hyatt Hotel, Zhao Ming, dressed in a well-pressed suit, held a pen between his fingers, his gaze sweeping back and forth between the timber boss and Li Xiangyang and Wang Ergou, who were "accompanying him in the negotiations." A professional smile played on his lips, but he couldn't hide the shrewdness in his eyes: "Mr. Zhang, last time you said you would think about it, what's with the sudden change of heart?"
Following Li Xiangyang's instructions, the timber merchant rubbed his hands together, feigning embarrassment: "Sigh, to be honest, a batch of timber I bought last month is stuck with me, and the bank is pressing me for loan repayment... I heard your company has a 'fast track,' and I don't mind if the interest rate is a bit higher."
Li Xiangyang interjected at the opportune moment, his tone cautious like a businessman: "Manager Zhao, our boss Zhang is also in a hurry to turn over funds. But 500 million is not a small amount. Which financial institution are you referring to as the 'special channel'?"
Zhao Ming tapped his pen on the contract, lowering his voice: "To be honest, this money doesn't come from a bank. It's from our parent company's 'Capital Management Company,' which specializes in this kind of 'bridge loan.' The procedures are simple; as long as you deposit the factory property certificate with us, the funds will arrive within a week."
"Pledge the property certificate?" Wang Ergou frowned deliberately. "That's no different from a mortgage. What if you can't pay it back..."
"Don't worry!" Zhao Ming interrupted him, pulling a document from his briefcase. "We have a flexible 'debt restructuring' plan. For example, if you are experiencing temporary difficulties, you can use equity to offset part of your debt—just like we did for other factories, which not only solves the debt problem but also allows you to grow with our group."
Li Xiangyang caught a glimpse out of the corner of his eye that Wang Ergou had quietly pressed the switch on the recorder. He took the "debt restructuring agreement" handed to him by Zhao Ming, and quickly scanned the terms. Sure enough, he saw a "share discount clause" similar to that in a food factory contract in the appendix, and even an extra clause: "If Party B breaches the contract, Party A has the right to appoint a third-party appraisal agency to value the assets."