Chapter 380 - 184: Pan Kejia: Men Are So Petty

Chapter 380: Chapter 184: Pan Kejia: Men Are So Petty

Based on the IPOs of previous industry leaders...

A 100% gain was definitely not the limit.

For example, Anji Technology soared by 400% on its debut day, and Dongfang Biotechnology surged by an even more impressive 587%!

Sky Intelligent Navigation was even higher on its first day, hitting 614%.

The most astounding was Guodun Quantum, whose first-day gains reached a terrifying 924%!

Its intraday peak even surpassed 1,000%!

True, many of these stocks skyrocketed on their debut day, hitting their peak price at the IPO only to decline steadily afterward.

In the long run, however, industry leaders with genuine production capabilities and a capacity for continuous innovation could still justify their high valuations through strong performance growth.

Chen Mo believed Chaolu Technology had that potential.

Given Chaolu Technology’s current technological competitiveness and market share, its first-day gains might not match the examples he cited.

But surpassing 100% would definitely be a breeze.

The exact percentage gain would depend on the IPO offering price.

If the offering price were set a bit lower, the gains would certainly be higher.

If it were set high, the gains would definitely be lower.

But no matter how it was set, 100% should be the minimum.

Before long, it was 9:30 AM.

Chen Mo immediately liquidated his entire stock portfolio.

After paying the margin interest and other miscellaneous fees, he had 290 million yuan in hand.

However, the 290 million yuan was still in his brokerage account, and transferring it all to his bank card in a single day would be a hassle.

A standard account had a daily transfer limit.

The daily limit was five million yuan.

Following that rule, it would take 58 days to transfer the 290 million.

In 58 days, Chaolu Technology would have long since gone public. Even if its stock shot to the moon on its debut day, it would have nothing to do with him.

So he could only opt for another method.

He could go to a branch office with his ID and make a manual transfer at the counter, which had a single transaction limit of 50 million yuan.

A few more transactions, and he could transfer the entire amount.

It was much, much faster than waiting 58 days.

"Hello? Is this Citic..."

Chen Mo called the Citic branch to make an appointment for a manual counter transfer the next day.

He had to do it tomorrow because withdrawals operate on a T+1 settlement basis.

In other words, the money from the shares he sold today could only be transferred out tomorrow.

As for Xihe, there was no need to call; Chen Mo sent Xia Shiqing a message on WeChat directly.

"Okay, I’ll personally take you there tomorrow."

Xia Shiqing replied to his message quickly.

"Alright."

A smile crept onto Chen Mo’s face.

If Xia Shiqing was taking him personally, he was certain they could complete the transfer in a single day.

The Xihe account had the most money, a full 190 million yuan.

Being able to transfer it out as quickly as possible would be for the best.

After chatting with Xia Shiqing for a little while, Chen Mo put down his phone.

He began to think about the matter of buying the shares.

For example, whether to buy them in his personal name or in his company’s name.

After all, the company had the "buff" of a tax incentive: two years of full exemption followed by three years of a fifty-percent reduction.

If he were to buy them in his personal name, assuming a 100% gain, the profit would be 300 million yuan.

That 300 million would be subject to a 20% tax, which is 60 million yuan.

Strictly speaking, this tax would be paid after three years, and he also had a three-million-yuan tax exemption.

That meant he would need to pay 57 million yuan in personal income tax.

In the end, combining principal and profit, he would walk away with 543 million yuan.

If he were to buy them in his company’s name, he would inject 300 million yuan into the company, and the profit would likewise be 300 million yuan.

His company would need to pay 20.16 million yuan in value-added tax and surcharges, and 34.98 million yuan in corporate income tax (after the three-year halving).

If he were to pay out this profit as a dividend to his personal account, he would also need to pay 48.97 million yuan in dividend income tax.

That’s a total of 104 million yuan!

Even if this money was left on the company’s books and not paid out as a dividend to his personal account, it would still be subject to 55.14 million yuan in taxes.

That wasn’t much different from the 57 million yuan he would pay if he bought the shares personally.

The crucial point was that if he bought them personally, the principal and profit would be deposited directly into his account.

He could spend that money however he wanted, and no one could tell him otherwise.

If the money was injected into the company, even if he had 100% ownership, he couldn’t just spend it frivolously.

That money could be used for company operations and investments, as well as paying employee salaries and other legitimate expenses.

But it couldn’t be used for personal consumption, not even by the sole, 100% controlling shareholder.

This way, while his company would indeed become more and more valuable, he personally would end up with very little cash on hand.

Because not only would he not get the profits, but even the 300 million yuan principal would have been injected into the company.

Unless he took it as a dividend, which would mean paying a 20% personal income tax.

All told, 104 million was far greater than 57 million.

It was almost double. There was really no need to buy the shares in the company’s name.

’What if I lend the 300 million to the company in the form of a loan?’

Just then, Chen Mo suddenly thought of a method used by many big shots.

Many big shots liked to lend their own money to their own companies.

When lending money to your own company, would you really set a low interest rate?

However, Chen Mo was different from those big shots. While they were founders and chairmen, they often held very little equity.

Chen Mo had 100% ownership, and this company was his starting point. Naturally, he wouldn’t do something like sucking the company dry.

He just wanted to test this line of thinking to see if it would be any better.

Chen Mo started scribbling and sketching on a sheet of A4 paper, beginning his calculations.

He couldn’t lend such a large sum of money to the company with zero interest, as that might be deemed a capital withdrawal disguised as a loan.

But since he didn’t want to suck the company dry, he calculated using the concurrent Loan Prime Rate (LPR) of 3.45%.

For a 300 million yuan loan over three years at an annual interest rate of 3.45%, the company would have to pay him 31.05 million yuan in interest.