Chapter 162: Morning in Philadelphia (6)

A private room located on the top floor of a luxury hotel in the heart of downtown Philadelphia.

Soft lighting poured down over the table.

The places where high-end tableware had been set were neatly cleared, and now a few empty plates and desserts were placed there.

The meal was over, but the air lingering in the room flowed heavily.

Outside the window, the splendid night view of Philadelphia spread out.

Countless lights flickered like stars fallen to the ground, but no one gave a glance to that beautiful scenery.

I slowly lifted my glass.

The sound of water going down my throat was heard particularly clearly in the silent space.

I did not put the glass down immediately even after swallowing the water.

I merely watched the afterimage of the lighting reflected in the water while lightly swirling the glass between my fingers.

Since I was not saying anything, everyone sitting around the table watched my mood with bated breath.

No one tried to bring up words first.

It was an atmosphere where it was difficult to ask easily while the representative was stalling and hesitating.

At that time, Director Choi Seo-jun cautiously cleared his throat.

His voice spoke low and more cautiously than usual.

“Representative, may I ask now?”

I slowly raised my head.

As our eyes met, Choi Seo-jun unconsciously swallowed hard.

My eyes were calm.

They were revealing nothing yet reflecting everything, just like a deep lake.

“Please speak. Director Choi.”

It was a calm yet heavy voice.

Choi Seo-jun also hesitated, but once he had opened his mouth, there was no turning back.

“Earlier. The words you said at the FMS headquarters.”

He cautiously continued speaking while watching my face.

“You said Sinoa Marine would collapse within three years… is that true?”

At the same time as those words, the air above the table froze.

Everyone's gaze, including Jo Hana's, turned toward me.

They waited with bated breath for the words that would come out of my mouth.

I merely set the glass filled with water down on the table slowly.

The sound of the glass hitting the table with a thud cut through the silence.

I hesitated while continuously fidgeting with my hands.

In fact, I was also in the middle of hesitating because I was worrying about how it would be good to explain.

Not knowing that, everyone was only watching my mood.

Finally, I opened my mouth.

“On the surface, it will certainly look like a growth trend. Since sales are going up.”

My voice was calm, but a keen analysis was contained within it.

“But if you look closely at the internal debt structure, the story changes. More than half of the operating funds are bank borrowings. It means it is not running on its own capital.”

Choi Seo-jun furrowed his brow.

“At that level… it is true it is dangerous, but is it not at a level where it would collapse immediately?”

I shook my head.

“Usually, people think that way. But Sinoa Marine's problem is not simply that the debt ratio is high.”

I lightly tapped the table with my finger.

As if thinking deeply about something.

“If cash flow is blocked, they might shake immediately. To put it simply, even if a deposit is delayed by only one month, a chain reaction of blows will come.”

Being a state-owned enterprise did not mean it was safe.

Sinoa Marine was not directly under the central government, but was a local state-owned enterprise under the city of Shanghai.

Recently, as the central government reduced financial guarantees for local enterprises, the loan limits of banks were also significantly reduced.

If funds get tangled in this situation, even the government cannot easily reach out a hand.

President Yu Hyeon-seok stroked his chin.

“And yet, for them to have proposed technical cooperation….”

I took over his words.

“Yes. That is the key.”

I lifted the glass again and took a sip of water slowly.

While the liquid went down my throat, everyone was only staring at me.

Setting the glass down, I dropped my gaze onto the table.

I spoke as if reading something while narrowing my eyes, as if a transparent report were spread out there.

“Usually, when a company with technical prowess offers technology transfer as a condition, it is a clear signal that they are already pushed into a defensive position. Technology is a company's core asset. It is a card that would never be given to the outside in a normal management state.”

Jo Hana took out her tablet.

Her fingertips moved quickly.

I stopped speaking for a moment and looked around.

All four people had their eyes fixed on me.

I slowly met their gazes and slightly raised the corners of my mouth.

Though to others it was closer to a confident sneer than a smile.

Swirling the glass, I continued speaking.

“Furthermore, Sinoa Marine acquired a stake in a subsidiary not long ago. Though they packaged it as business expansion on the surface, the reality is different.”

General Hong showed interest and asked.

“Is there a problem with that subsidiary?”

“It is not just a level of a problem.”

Firmness permeated my voice.

“Looking at that company's internal reports, there have already been two liquidity warnings. The repayment schedule is continuously being delayed, and the creditor group will start to exert pressure in earnest.”

Jo Hana’s eyes widened.

“Then by any chance… if the subsidiary goes bankrupt?”

I nodded.

As if I had been waiting for her words.

“That aftermath will spread directly to Sinoa Marine.”

I tapped the table twice with my finger.

As if visualizing the sight of dominoes falling.

“It does not end simply as an investment loss. Credit ratings will drop and contract reliability will crumble. Additional loans from the financial sector will also be blocked. And core personnel will begin to leak out. Because smart people will jump off first before the ship sinks. From that moment on, it is truly the end.”

President Yu Hyeon-seok muttered low.

“In the end, offering even technology transfer meant it was the last card for survival.”

“That is correct.”

I slowly nodded and continued speaking.

“So the partnership they suggested is, in a way, closer to a rescue request rather than cooperation. If they do not notice that, FMS will also be dragged into the water together.”

Once those words dropped, it felt as if the temperature above the table were dropping rapidly.

General Hong let out a long whistle.

Then he spoke.

“Then it means FMS has already joined hands without even knowing it is dangerous.”

I said with a meaningful smile.

“That is why I said that.”

It looked as if it were underpinned by calm yet sharp insight and cool judgment, as if I had known from the beginning.

“They probably do not even know how deep a quagmire they have stepped into right now.”

Silence flowed for a moment along with those words.

A piece of ice floating in the glass melted and made a cracking sound.

Even that small sound echoed clearly in this silent space.

Choi Seo-jun asked cautiously.

“Still, for the Representative to be so certain, is it not because you have confirmed something more?”

I only smiled instead of answering.

At times like this, Choi Seo-jun felt a little annoying.

Jo Hana lowered her head for a moment, and then her fingertips moved quickly over the tablet.

Her hand, which was scrolling down, stopped.

Jo Hana’s voice echoed low.

“The words the Representative said are true.”

Along with that short sentence, gazes were focused on her.

Jo Hana rotated the tablet screen so that everyone could see it.

“This is the financial disclosure data of Sinoa Marine's parent company.”

Her voice was imbued with her characteristic level-headedness.

“As of the second quarter of last year, the debt-to-equity ratio has exceeded 280%. On top of that, the subsidiary has been on the delinquency list for repayments since three months ago.”

She caught her breath for a moment.

“It appears that Sinoa Marine has jointly guaranteed 70% of the subsidiary's debt.”

The numbers on the screen were cold.

The debt items marked in red seemed to flicker like warning lights.

Jo Hana’s finger pointed to a specific figure.

“This is not a simple liquidity problem, it is structural insolvency.”

Her voice became firmer as it was filled with conviction.

General Hong also just stared at the screen without being able to close his mouth.

“It is real.”

He ended up saying it without realizing it.

While everyone could not hide their surprise, I was still silent.

I merely picked up and ate one of the cookies that came out as dessert.

Jo Hana took the tablet back and quietly added it.

“It is perhaps natural that FMS did not know this.”

Her gaze slowly turned toward me.

It was a look filled with respect and trust.

“Chinese companies can never be judged solely by the figures revealed on the surface.”

Jo Hana continued speaking as if retracing her own experiences.

“Documents seen on the surface can be adjusted at any time. When government subsidies go in, they can look like they are in the black. Furthermore, Sinoa Marine is easy to mistake as safe from the outside because of its title as a state-owned enterprise.”

She caught her breath for a moment and chose her words more carefully.

“But China is currently in a restructuring phase. As the central government reduces support for local state-owned enterprises, local-level companies are in a situation where they are practically being forced to survive on their own.”

Her finger touched the tablet screen once more.

A new graph appeared.

The falling support fund trend and the surging debt ratio were clearly contrasted.

“So while it looks like there are no problems on the surface, inside it has already festered as much as it can.”

President Yu Hyeon-seok muttered lowly.

His voice was somewhat mixed with realization and anxiety.

“That means if government guarantees disappear, state-owned enterprises could collapse before private ones.”

Jo Hana slowly nodded.

“That is correct. Especially for a company like Sinoa Marine with a large proportion of overseas business, the blow is much faster.”

She hesitated for a moment and then threw out a word that pierced the core.

“The reason FMS could not have known that is only one.”

Jo Hana’s gaze sharpened.

“They interpreted China too much with a Western yardstick.”

Choi Seo-jun let out a long sigh.

His shoulders slumped.

“So they judged based only on the surface after all.”

He shook his head with a self-mocking smile.

Bitterness was revealed intact on his expression.

Only then did I raise my head.

My expression was calm, but my eyes shone coolly.

As if I had known all this.

Yet, at the same time, complex emotions as if feeling regret were contained within.

“That is why I always say. China is not a country that is read by numbers.”

My voice was low but clear.

Weight was loaded into each and every word.

“So one should not only look at reports but also consider the overall national policy situation.”

The lights illuminating the city outside the window were still sparkling splendidly, but now those lights began to look different.

Everyone in the room became lost in their own different thoughts.

I smiled quietly.

The moment of discovering an invisible crack.

This will be the beginning.