My capital is quite large.

Chapter 171 Moths to a Flame

Throughout August, Li Feng's schedule was non-stop.

Between Nanjing and Xuzhou, the private jet bearing the Haofeng logo has practically become an aerial bus.

In this sweltering summer, Xuzhou New City Economic Development Zone has transformed into a bustling construction site.

"Mr. Li! This is the battery cell packaging plant that we just fully acquired and upgraded. This is the sixth factory we've opened this month!"

Under the scorching sun, Yu Chengdong, wearing a red safety helmet and drenched in sweat, pointed to the huge factory building covering tens of thousands of square meters in front of him.

Beside Li Feng, the top two leaders of Xuzhou City accompanied him with smiles on their faces, and the flashes of cameras went off one after another.

"The old screen module production line we bought from Sharp in Japan isn't the most advanced, but our technical team is working day and night to reverse engineer it and master it!"

"And there are also camera modules, motherboard SMD components, precision machine tool molds for phone casings... Mr. Li, the money you've given us is just right! We're now truly disassembling a phone's core components, bit by bit, into our own complete industrial chain!"

Listening to Yu Chengdong's energetic report, Li Feng's eyes gleamed with admiration.

He picked up the golden scissors and, amidst the deafening sound of firecrackers and the cheers of the local people, cut the red silk.

During this period, Li Feng, a rarely seen internet tycoon, has frequently appeared in front of local television news and official media in Liangjiang.

With each appearance of his, a super factory is completed, and hundreds of millions or even billions of dollars are poured into the deep pit of physical manufacturing!

For this entire industry chain, Li Feng's plan for the next ten years will most likely involve an investment of hundreds of billions of RMB!

This year alone, the initial startup capital has already reached several billion yuan!

Moreover, the purchase of outdated technologies from Japan and South Korea, the poaching of technical experts, and the annual investment of billions of dollars in pure R&D... these actions, which seem like throwing stones into the sea, have caused a great sensation in the industry.

"Is Li Feng out of his mind? Haofeng Network makes so much money from games and videos, why would he give up the internet with its 90% profit margin and go build a factory in the mud?"

"This is a bottomless pit of heavy assets! How much profit can you make assembling a single phone? Not to mention his plans to develop a complete industry chain and manufacture chips. Isn't this just a moth drawn to a flame?"

"I heard he mortgaged all his overseas shares to do this, owing banks hundreds of billions! I think Haofeng's aircraft carrier will be dragged down by this anchor sooner or later!"

The bigwigs in the internet industry shook their heads and sighed when they saw Li Feng's actions, which went against the logic of "making quick money with light assets." Many people were waiting to see him make a fool of himself when his capital chain broke.

But they don't understand at all.

Li Feng stood on the high platform of the factory, looking down at the tens of thousands of industrial workers dressed in uniform below.

This is only the beginning.

Once the entire industrial chain is fully integrated, the massive heavy industry system, encompassing upstream and downstream contract manufacturers, logistics, and supporting service industries, will create at least millions of jobs in the future!

The livelihoods of millions of families!

What does this mean?!

When he tied the livelihoods of millions of people and the local economic lifeline to Haofeng Group in Xuzhou and Nanjing...

This is the most indestructible get-out-of-jail-free card in this land!

"Others laugh at me for being like a moth drawn to a flame; I laugh at them for being unaware of their impending doom."

Li Feng coldly looked down on his colleagues who only knew how to fleece people in the virtual world.

When the tech war starts in a few years, you'll see who can make money while standing up!

……

In early September, a refreshing autumn breeze was blowing.

The annual Forbes China Rich List has entered the final asset accounting stage before its release.

As a rising superstar in China's internet industry, Li Feng naturally became the focus of Forbes investigators' attention.

That afternoon, several Forbes asset appraisers walked out of the Haofeng Group's headquarters building.

"That's unbelievable."

The lead assessor looked at the documents in his hand and shook his head. "It's widely rumored that Li Feng is a hidden billionaire, and some people even guess that his net worth has exceeded 100 billion. But after looking at the financial structures they've disclosed today, it's clear that the figures are inflated."

"Yes," another assessor chimed in. "Haofeng Group isn't listed, so without the support of a secondary market price-to-earnings ratio, we can only make a conservative valuation based on their net profit."

"And most fatally, Li Feng owns a cash-burning semiconductor project like Huaxin Technology, as well as a capital-intensive factory owned by Xiaomi Technology. These are all substantial debts!"

"Although his personal overseas shares are valuable, he just pledged them to an international banking syndicate, incurring an 80 billion yuan debt. Adding that to the 300 billion yuan syndicated loan… his total apparent liabilities amount to a staggering 380 billion yuan!"

Net assets are calculated by subtracting liabilities from assets.

In traditional Western assessment systems like Forbes, the true financial health of an unlisted company owner like Li Feng, who invests heavily in heavy assets and carries billions of dollars in debt, would be significantly discounted.

A few days later, the 2012 Forbes China Rich List was officially released!

The moment the list was released, netizens rushed to find the name of the "Liu Bang of Xuzhou" and the "God of Wealth in the Entertainment Industry".

However, the result surprised countless people.

The person ranked first is Mr. Zong of Wahaha, with a net worth of 630 billion RMB.

Second on the list is Li from Baidu, with a net worth of 510 billion RMB.

Wang Jianlin, the richest man in China, and Pony Ma, the founder of Tencent, are both among the top ten.

And Li Feng, who wields immense influence on the internet and in the entertainment industry…

It only ranked fifteenth on the list!

[15th Place: Li Feng. Main Businesses: Haofeng Group, Xiaomi Technology. Estimated Net Assets: 315 billion RMB.]

"Holy crap? Only 30 billion? Did Forbes take bribes for this list? Mr. Li is so rich, and he didn't even make the top ten?"

"You upstairs don't understand, Forbes looks at net worth! I heard Li Feng owes banks almost 40 billion yuan for his semiconductor business and factory construction! His debt ratio is too high; having a net worth of over 30 billion yuan is already amazing!"

"So he's a debtor! I thought he was incredibly rich. Looks like he took too big a step and is under a lot of financial pressure."

Upon seeing this list, not only netizens but also other big names in the internet community breathed a sigh of relief.

Looking at the list, Pony Ma from Shenzhen smiled with a relaxed expression: "I knew it. Heavy assets are a quagmire. Li Feng jumped in himself. A mere 30 billion yuan in assets is not enough to pose a sufficient threat to Tencent."

......

However, while the outside world was discussing this list extensively.

In the study of Zijinshan Manor in Jinling.

Zhang Xinyu casually tossed a magazine featuring the Forbes rich list into the trash can, her delicate face filled with absurdity and amusement.

"Boss, those foreign devils at Forbes are really bad at accounting."

Zhang Xinyu walked behind Li Feng, massaged his shoulders, and couldn't help but complain, "They actually counted Huaxin Technology's 30 billion loan as your personal deduction, without even clarifying the most basic physical segregation of assets."

Forbes was fooled by Li Feng's masterful use of capital illusions!

"Let them calculate. The tallest tree in the forest is the first to be felled by the wind. Making a fortune in silence is the best way." Li Feng picked up his teacup, completely unconcerned about any empty fame.

"But this error is just too outrageous."

Zhang Xinyu chuckled lightly, "They only see the surface-level revenue. They haven't taken into account the hidden valuation of our Haofeng Group, which is 100% wholly owned, let alone the real premiums of your external investments in JD.com, Xiaomi, Nvidia, and Steam. This list has reduced your net worth by more than five or six times."

As the boss's chief secretary in charge of the accounts, Zhang Xinyu knew the situation better than anyone else.

If we adjust Haofeng's money-printing machine according to the current internet price-to-earnings ratio, add those money-devouring external equity stakes, and deduct overseas pledged loans... the boss's real net worth is conservatively estimated to have already exceeded 150 billion!

This is not only China's hidden richest man, but he could even break into the top ten of this year's Forbes Global Rich List!

"Alright, we don't need to use these lists that are just for fooling outsiders in our reports anymore."

Li Feng put down his teacup, ending the pointless conversation, and turned to look at Zhang Xinyu.

"Have you finalized your schedule for September?"

Zhang Xinyu put away her casual expression: "Boss, the schedule for early September has been cleared as much as possible."

"Um."

Li Feng stood up, walked to the floor-to-ceiling window, and looked at the Zijin Mountain scenery in the distance.

"Go and arrange a private flight and security team."

"I'm going to Hong Kong next month."