Chapter 168: The Only Rule!

"By the way, I heard... Xia Hua... oh no, it's Fanghuan Shipping now. I heard they're issuing 5 billion in corporate bonds?"
"Yes, the newly appointed CEO, Du, said he'll actively invest, personally handle business, and strive to get the company back on track."
Fanghuan Shipping's new captain is a company veteran named Du Yuanhang.
He promised to use his years of experience and connections to lead the company out of its current predicament and restore its once-tarnished reputation to its former glory!
But all of this requires money.
Therefore, he decided to issue 5 billion in bonds as operating capital for the company.
"Of these bonds, Fanghuan itself will probably invest about 3 billion," Su Hao explained.
"Mr. Su, is this using our department's funds?"
"No." Su Hao shook his head. "We've already invested 10 billion; adding more would be excessive.
Chairman Huang's idea is to use funds from Fanghuan Investment's own assets."
Fanghuan Investment now has its first subsidiary—Fanghuan Shipping.
The most common and safest way to inject capital into a subsidiary is to issue bonds and then subscribe to them with its own money.
This is both capital injection and a gesture—declaring to the entire market: Fanghuan is serious about the shipping industry!
"But the problem is, the outlook for the shipping industry is just too bleak right now."
The shipping industry's winter began with the global price war.
Customers aren't stupid; they'll use whoever offers the cheapest freight rates—that's only natural.
"It's so strange. These days, with wars raging everywhere, why are oil prices falling instead of rising? It's really incomprehensible."
"Yeah, when I was a kid, I heard on the news every day that oil was running out and they needed to develop new energy sources.
And what happened? The other day the news said they discovered a super-large oil field in the Middle East?"
More than half of a shipping company's operating costs are fuel expenses; fluctuations in oil prices have a decisive impact on the entire industry.
It's precisely because oil prices are low that countries around the world can drive down transportation costs even further.
"To put it bluntly, it's a bloody 'battle royale' game," someone succinctly summarized.
"That's the strategy countries are playing.
Now they're grabbing market share with low prices regardless of cost, waiting until all the other companies are driven out of business, then the entire market is theirs.
Then, won't they be able to dictate prices?"
This game is brutally cruel.
All players must constantly cut their own flesh and bleed until only one survivor remains.
Despite shedding its debts and changing its management, Fanghuan Shipping appeared revitalized, but its future remained bleak due to a lack of competitive transportation costs.
‘That won't do!’ Su Hao's brows furrowed deeply.
Fanghuan Shipping was the first business he and Huang Fengwen had jointly acquired.
After all that effort, finally rescuing it from the brink of collapse, was it just to prolong its life?
He absolutely couldn't accept that!
There had to be something… that could break the deadlock!
He immediately had all the shipping industry-related materials brought to him, piling up like a small mountain, and began to study them diligently.
However, one page, two pages, one stack, two stacks…
He studied from day to night, turning every document inside out.
Finally!
On one document, a long-awaited torrent of information emerged from his fingertips!
***
Meanwhile, Du Yuanhang, the newly appointed general manager of Fanghuan Shipping, was so worried his hair was almost turning white.
Since becoming general manager, he hadn't had a good night's sleep.
From being an ordinary employee, then a department manager, then a senior executive, and now general manager, he had poured his life's blood into saving this struggling company.
He was full of ambition, determined to pull this sinking ship back on track, but the wall of reality was just too damn thick.
"Mr. Du, almost all of our major client contracts have been snatched away by overseas competitors with lower prices.
Not just us, even the current leading domestic companies are having their market share eroded at an alarming rate."
"The only solution is for us to lower our prices too, even if it means losing money, we have to retain our clients..."
An executive suggested.
But what difference would that make from Xia Hua Shipping before its bankruptcy?
It's simply the difference between a slow death and a sudden, acute one.
"But what...what the hell is this?"
Besides the business troubles, Du Yuanhang had another, even more troubling problem.
Just after the 5 billion yuan arrived in his account, he received a "supreme instruction" from Fanghuan Investment's headquarters.
More accurately, it was a message from the legendary director of the trading department—Su Hao:
"Take all 5 billion yuan and buy oil! Stockpile it!"
What the hell?!
Du Yuanhang simply couldn't believe his ears.
This 5 billion was his lifeline, the money he planned to use to repair the company, upgrade the fleet, and barely keep operations afloat!
Company executives also raised objections:
"Mr. Du, stockpiling some as a strategic reserve is understandable, but 5 billion... isn't that too much?"
"Yes, Mr. Du, 5 billion worth of oil... our storage facilities can't hold it all. We'll have to spend money to rent new warehouses!"
"Moreover, purchasing so much oil at once is too risky; we'll definitely lose money!
All the experts predict that due to the global oversupply of crude oil, prices will continue to fall, from the current $38-40 range, to below $35!
Is there any possibility of oil prices rising in the short term? Unless a world war breaks out!"
In a situation where everyone is bearish, using all the company's funds to go all in on oil?
From any perspective, what's the difference between this and madness?
However, Du Yuanhang involuntarily recalled the words Chairman Huang Fengwen had said to him before he was appointed general manager.
"Old Du," Huang Fengwen patted him on the shoulder, speaking mysteriously,
"Once you're at Fanghuan, you have to abide by Fanghuan's rules. Our company has only two ironclad rules!"
"Oh? Chairman Huang, please speak."
"First, Director Su Hao's investment opinions must be implemented unconditionally and 100%. No questions allowed!"
"And... what's the second?"
Huang Fengwen grinned, revealing a set of bright white teeth.
"The second rule is, if any doubt arises, immediately copy rule one a hundred times!"
This conversation sounded utterly ridiculous.
But Du Yuanhang clearly remembered that when Huang Fengwen said this, there wasn't a trace of a joke in his eyes; it was absolute seriousness and an unquestionable tone.
"I know this sounds a bit strange," Huang Fengwen emphasized, "but trust me, work for President Su, and I guarantee you'll have money crawling under your pillow even when you sleep!"
Rumor had it that even he, the chairman himself, unconditionally followed Su Hao's investment decisions.
Du Yuanhang closed his eyes, falling into a brief moment of contemplation.
Reason was screaming alarm bells; his brain's CPU was about to overheat from the logical inconsistencies.
However, that young director named Su Hao…
Chairman Huang's unwavering trust…
Finally, he abruptly opened his eyes, his gaze filled with a do-or-die determination.
"...Go check how much storage space we can find for oil.
Not just this 5 billion, mobilize all the available cash in the company's accounts and convert it all into oil!"
"Mr. Du! You really want to buy it?"
"What?! You're not kidding, are you?"
The subordinates looked like they'd seen a ghost.
'Damn it, I'm betting!' Du Yuanhang clenched his fists.
As the saying goes, when in Rome, do as the Romans do.
Or rather, once you're in Fang Huan, you have to abide by Fang Huan's rules.
And here, Su Hao's judgment is the only rule!