Chapter 373: Recouping Investments
Chapter 373: Recouping Investments
After dinner, Su Heyuan sent Susan home, and on the way, she said, "Big sister, it's actually a good thing for me that you're staying. But opportunities like this are rare, and I'm afraid you might regret it?"
"Miss Lu has only opened one store. Why are you so optimistic?"
Su Heyuan smiled and said, "Compared to financial and real estate businesses, the profit margin in the clothing industry isn't that high. But she chose to give up on real estate and open a clothing store. Do you know why?"
"Why?"
Su Heyuan explained, "Because she likes it, she's willing to devote her energy and financial resources to it, and she will definitely make it a success."
In fact, he was quite interested in investing, but knowing that Lu Jiahui would not agree, he didn't bring it up.
Susan asked again, "You just said that Miss Lu gave up on the real estate business? It's not easy to make a profit in that industry. My father and brother invested in it before, and they both lost money."
What Su Heyuan meant was that Lu Jiahui was starting a real estate company, but Susan thought he was talking about investing. However, he didn't explain, "With Nie Zhan around, there's no way they'll lose money."
Susan thought about it and felt that he made sense.
When she returned, she sought her husband's opinion, and he was opposed to the idea of her joining Lu Jiahui's team. After all, Lu Jiahui had only opened one store, while Qirui was a company with annual profits of several thousand dollars.
After much deliberation, Susan decided to join Lu Jiahui's team. Firstly, Lu Jiahui had a keen sense of fashion and a natural talent for it. Secondly, Xu Yue was quite famous in the industry, and the fact that she chose to follow Lu Jiahui instead of joining a larger company meant that she believed in the better prospects. Thirdly, and most importantly, there were Su Heyuan's words. Having worked with him for so long, she knew that he was not one to make empty promises.
Her husband was angry that she didn't listen to him, and the couple had an argument. However, this didn't change her mind, and the next day, she gave Lu Jiahui a definite answer.
Lu Jiahui smiled and said, "Then wrap up your work quickly and come over."
She didn't want to overwhelm herself, so for Green Forest, she only intended to oversee the general direction. She left the agency rights and product selections to Xu Yue, and planned to hand over the company's operations to Susan.
Susan promoted her assistant and completed the handover within three days, reporting to Lu Jiahui. By then, Xu Yue had already secured a celebrity endorsement, and she was in charge of the subsequent filming and promotion, quickly getting a handle on things as these were her strong suits.
On the first day of filming, Susan went to report to Lu Jiahui, but before she could say much, she was interrupted. Lu Jiahui said, "Now that I've entrusted this to you, there's no need to report to me about every little thing. Sister Susan, I only care about the results; you have the freedom to decide on the process, and I won't interfere. You've been in this industry for almost twenty years, and I trust your judgment and abilities."
Susan was taken aback, but after a moment, she nodded and said, "I understand."
Lu Jiahui said, "I've already transferred three million to the Green Forest account. Sister Susan, we need to have our advertisements on television, fashion magazines, buses, and billboards."
Susan hadn't expected such a generous budget, "Boss, the marketing expenses will be quite high."
"You don't have to worry about money. Just give me a budget, and we're good to go. Oh, and if you know anyone talented in marketing, feel free to poach them."
Susan's worries melted away, and she smiled as she agreed. Heyuan had said that she would regret not following Miss Lu, and she now agreed with that statement. Her boss not only had a keen sense of fashion but was also financially strong and willing to invest heavily. The store would definitely be a hit.
After seeing Susan off, Lu Jiahui calculated her available funds. Since January, she had spent a total of 17 million Hong Kong dollars on the down payment, taxes, and other expenses for the villa. The acquisition of the real estate company and the subsequent expenditures amounted to 48 million. As for Green Forest, the rent, agency fees, and other costs had totaled over 5 million so far. Her expenses for the Gu residence and her personal spending for the past six months had also amounted to over 4 million.
After calculating, she had already spent nearly 100 million green dollars, and had about 130 million left. However, this was not enough for her upcoming plans to purchase high-quality properties.
The next morning, Lu Jiaxin called Wu Ziyu and asked about the current exchange rate of green dollars to Japanese yen. Upon hearing the rate, she discovered that it had dropped by 50% compared to before the agreement. Furthermore, compared to the rate when she had bought for the third time, it had dropped by an additional 30%.
At that time, she had bought 50 million green dollars using a tenfold leverage, profiting 150 million (excluding taxes and fees). Additionally, the Standard Chartered and HSBC accounts, which did not use leverage, had earned a combined profit of 3 million. Her total profits in Hong Kong City amounted to 213 million, and after deducting taxes, fees, and commissions, she was left with over 187 million. She had transferred 800 million to Nie Zhan, earning a profit of 240 million green dollars, bringing her total profits to 320 million. Lu Jiaxin was yet to calculate the taxes, fees, and commissions on Nie Zhan's side. On top of that, she had also invested 20 million green dollars in stocks, which had also increased significantly over the past six months.
Lu Jiaxin was very satisfied with her calculations. Her first goal of achieving financial freedom before the age of 20 had been accomplished. Her next goal was to establish her own brand by the age of 25, and she believed that she could achieve this in less than five years.
Upon hearing her intention to close her position, Wu Ziyu readily agreed. The decline had already brought significant profits, and knowing when to take profits was a wise decision.
However, Lu Jiaxin was not ready to take profits just yet. She recalled that within the next two years, the exchange rate of green dollars to Japanese yen would drop by more than double the current rate. With the rate having only dropped by 50% so far, she believed that continuing to short the market would bring further gains. Nonetheless, she expected there to be fluctuations and did not anticipate such a significant drop.
After some thought, Lu Jiaxin said, "Mr. Wu, I want to continue shorting. With a principal of 50 million and a five-fold leverage, there should be orders to match that, right?"
Wu Ziyu, recalling Lu Jiaxin's previous prediction about the continuous decline of the green dollar against the yen, smiled and said, "Yes, you can buy as much as you want."
Lu Jiaxin thought for a moment and said, "Since there are orders to match, then I'll buy one hundred million with a five-fold leverage."
Wu Ziyu smiled and nodded in agreement. "Alright, I'll help you close your current position tomorrow and then open the new one."
"Sounds good," replied Lu Jiaxin. She still had to transfer the money from her account and discuss the purchase of properties with Tan Gang and He Bin the next day.
As for Nie Zhan, she didn't call him. The two of them had already planned to have lunch and spend the day together. It was important for couples to meet and spend time together regularly to deepen their emotional connection. Long-distance, purely spiritual relationships rarely worked out and usually ended in breakups.
During lunch, Lu Jiaxin shared her thoughts, "After closing the current position, I plan to leave another 100 million to continue shorting. With the five-fold leverage we discussed before, I intend to hold this position until the end of the year."
Nie Zhan refrained from giving further advice, as they had already tripled their investment. Leaving 100 million to continue shorting was no longer considered a risky move. He asked, "In that case, will you transfer the rest of the money back?"
Lu Jiaxin shook her head. "I'll leave half of it there. I plan to open a few accounts on Wall Street to make it more convenient for stock investments and foreign exchange trading."
Previously, she had no choice but to ask for Nie Zhan's help due to her age. Now that she had come of age, she wanted to handle these matters independently.
(End of Chapter)
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