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The Ideal City

This is a work of fiction.

Ep37

You know what...

You've just accidentally spilled the beans.

What?

You said,

"I thought you'd just send out a confirmation letter.

I didn't expect you to come in person."

What's wrong with saying that?

The fact that I went to Mr. Cui

was part of your plan,

wasn't it?

What plan?

I don't know what you were plotting,

but I know

that I am walking towards

a trap you set,

same as always.

I'm tired of all this, Xia Ming.

I'm truly exhausted.

Good luck.

Xia Ming

I've checked back and forth

at least four or five times.

TK for sure has

more liabilities than assets now.

How's that possible?

The audit two years ago

reported TK's financial status as

much healthier than the other four subsidiaries.

The report was prepared cleanly

without finding any flaws.

Gao jin,

What do you think?

It does have rather high debts,

but considering the All-Stars Plaza

has always been on advance construction,

the numbers seem to be within a reasonable range.

Have you confirmed the latest

outstanding balances?

Yes, I have.

There's no problem with the contract.

But to have more debts than assets

within such a short period

is indeed unreasonable.

I was thinking last night.

It's baffling for that girl to show up at my place

for no reason.

How was it possible?

Mr. Cui, it's my bad.

I left in a rush yesterday,

and I didn't have time to explain everything to you.

Yinghai Group is conducting

investigative auditing on us.

She's the Chief Director of the investigation team.

After she saw the loan contract between us,

she went there to confirm in person.

It's not a big deal.

It's not a big deal?

True. It's just to go through the process.

How come I have a feeling

that you didn't tell the truth.

Mr. Cui,

I wouldn't dare to lie to you.

You are my main benefactor.

Mr. Gao, what brought you here?

I'm here to conduct the complete audit.

Is Mr. Xia in?

Yes, he is.

He has visitors though.

Do you mind

waiting in the conference room for a while?

Sure.

Please bring me

all the financial data

from the past three years.

Also,

all the financial transactions

from now on

have to be approved by us first.

Okay.

After you, please.

Mr. Gao.

Has Ms. Su told you

I'm taking over the work here.

About five or six people

from the audit team came.

They're in the meeting room over there.

I knew it.

You didn't tell me the truth.

What do you mean?

Stop talking nonsense to me.

Do you think I'm a fool?

When an investigation of such level occurs,

either you

or your company

are in some major trouble.

How big of a problem could it be, Mr. Cui?

It's nothing.

Are you still trying to fool me?

I've been in the industry for over a decade,

don't you think I have the basic instincts?

Hurry to make the repayments,

and we can remain well civilized.

If you keep finding excuses,

don't blame me for

being rude to you.

Mr. Cui, please calm down.

Hear me ...

You will never give up

until you are consigned to the grave, won't you?

Mr. Gao is here.

He said that Yinghai sent him

to conduct the complete audit.

Okay. I got it.

He is like a pillow with an embroidered case,

just a pretty face.

That's right.

Among the five T-subsidiary companies,

TK is the best and most healthy financially.

How could it have deficits

just like that?

How would I know?

In this case,

what should we do now, Mr. Lin?

Do you want to keep collaborating with TK?

Let's wait and see.

I don't think it's that simple.

Perhaps, Xia Ming is holding back,

and plotting something ruthless.

He's left the land in the suburbs untouched.

He doesn't rely on his connection with He Yao, either.

The role as the general manager after the acquisition

seemed unattractive to him.

This is odd, isn't it?

I think so, too.

Whoever has all three conditions

could easily become an overnight success.

Fixed Asset Subsidiary Ledger

Land-use Rights

It's been a while. What are you up to?

I'm conducting investigative auditing at TK.

I just finished handing work over to Mr. Gao,

and got back.

I heard that TK is very deeply in debt.

What's going on?

I'm just casually asking.

If it's not convenient for you to say, forget it.

I know the subject may

be confidential.

Well, there's not any inconvenience.

It's already an open secret, isn't it?

If you ask me,

what they did is blind expansion.

At that time,

Mr. Lin offered to get them involved

in the real estate business.

Who knew that Xia Ming

would have turned it down right away.

How typical of having high aims but low abilities.

He totally messed up!

I have no idea what he's up to.

Did Su Xiao know?

I heard that they dated

in the past.

Do you think Su Xiao

will help him out?

No way.

Xiao will never do that.

Yeah...

about the recommendation last time,

I owe you big time!

No biggie!

Says who?

Listen.

We are extremely happy with

those people you recommended.

Mr. Lin even commented that

these people are amazing.

I said, 'of course,'

'they were referred by Helen."

He even said that if not for the fact

that you're already transferred to the reform team,

he would have requested to

transfer you to our real estate company.

What can I do there?

Be the HR Director, of course!

He's unhappy with

the HR director

we have right now.

I'm not qualified.

You are much better than

that Maria!

Look at her.

Other than dressing herself up every day,

she knows nothing.

She's acting.

Just like that all the time.

What an annoyance!

She's so annoying!

Don't you know?

So accurate!

Of course!

Xiao.

Ms. Su,

I am done eating.

Enjoy your meal!

Thank you.

Ms. Zhu was handing the account over to Mr. Gao,

and everything went well.

So I came back early.

Since when are you this close

to Nana?

We've always been pretty close.

What's wrong?

Nothing. I'm just wondering.

Are you still worried about Xia Ming?

I couldn't sort out this one thing.

TK is

his uncle's life-long hard work and dedication.

Even though he doesn't like the idea of acquisition,

he wouldn't want to destroy it,

ruining everything.

I've heard that

Lin Xiaoming invited him

to get his hands on the real estate business,

but he refused.

Perhaps...

he has misjudged the situation.

I... I'll get going now.

Okay.

How did it go?

For now, I haven't found any problems.

The financial reports here have no flaws, either.

Keep going.

After you, please.

How is

Mr. Huang's recovery?

Pretty good.

He visited the company on wheelchairs just

a couple of days ago.

Is that so?

It seems he's very concerned about the company.

Without a doubt!

Mr. Xia doesn't want him to worry,

so he's always kept in the dark from company affairs.

Mr. Huang would always call

and ask me secretly.

In your opinion,

how do you think Mr. Huang will react to

the deficit problem of TK?

That, I'm not sure.

Based on my understanding of him,

he'll jump right off his chair.

How did TK get into so many debts?

I'm in no place to say anything regarding

the operation and management of the company.

Shall I ask Mr. Xia to come and explain it to you?

You are the manager of the business contract department.

How could you not know where the losses are from?

That, I do know.

At first, it started with the Public Housing Project

in Taoyuan village.

After the walls collapsed,

we lost quite some money for compensation.

Before we could fill the money hole,

we took on the All-Stars Project.

We have been doing advance construction.

The interest expenses grew exponentially.

After that, Mr. Huang became ill,

we couldn't get the loans from the bank approved,

and subcontractors had a run on the bank.

Since then, there have been problems with our cash flow.

But once the All-Stars Plaza

launches the pre-sale,

things will turn around.

Once the pre-sale is launched, it'll be alright?

That should be the case.

Now the final account method

has changed, and most people place a lien on the properties for the construction fees.

The housing market should go up.

What if the price goes down?

What do you think is the most difficult part

of working in the finance and accounting field?

Well.

The most challenging part

is to decide where you stand.

The boss wants the numbers to look good.

They want to reimburse more than what's allowed.

They want to accumulate wealth on the kickbacks.

If you disagree,

you'll upset your boss,

and you'll have a hard time.

If you comply,

you are against the financial principal and guidelines.

If something goes wrong,

you are an accomplice.

What is it?

Construction companies have

very little intangible assets

Three years ago,

in the financial reports of TK,

there was an extra item,

the land-use rights.

Public Land-use Right Listing

I'm here to ask you about it.

Is there any problem with that?

The land has low depreciation

so it has not caught the attention of auditors'

in-depth investigation.

But it has a large area.

What's wrong with a large area?

It's nothing but a wasteland.

A few years ago,

we completed a shantytown redevelopment project,

which sustained losses.

So, the proprietor

placed a lien on the land use rights

in place of the last payments to TK.

Since it's been sitting there,

I hired

some farmers in the neighborhood

to plant organic produce on the land,

and turned it into a membership-based business.

Members are mostly TK's employees

and their family and friends.

As you can see,

the profit isn't much.

It's hard to say when

it can make up for the shortfall of the project.

You're very invested

for such little profit.

What else can I do?

It's a hot potato for me to deal with.

At least, the produce from the garden

is truly good.

Hello.

Mr. Xia, something came up at the construction site.

What happened?

A bunch of gangsters came.

What are you doing? Stop it!

Hello?

I gotta go.

What's going on?

Are the gangsters at TK's construction site

causing any trouble?

So far,

it seems that the loan between TK and Prosperity Bonding Co.

isn't fraudulent.

And there's not

any siphoning off funds for self-enrichment found.

But.

what is it then?

The juridical person of this boding company

is Cui Shaohui,

known as Mr. Cui.

Huang Lilin mentioned him before.

Mr. Zhao, do you recall?

No.

I don't remember a thing.

I have checked and found

that Huang Lilin used to

get bridge loans from Prosperity Bonding

when he was in short-term cash flow deficits.

There's a record of over ten years of transactions.

Their debtor-creditor relationship should be without doubt.

I see.

Su Xiao, please pay a visit

to find out what's going on.

These are all old rascals.

It's not right to send a girl like Su Xiao.

I'll go.

There's no need.

Let her go first to test the water.

If she failed, then you'll go.

I went to this bonding company

not long ago,

and I've dealt with Mr. Cui.

Perhaps Zhao Peng

should accompany her there?

No.

Not Zhao Peng.

He Congrong,

you'll go with Su Xiao.

First and foremost, you must figure out

their true intention once you get there,

specifically you need to find out

if they are in it together.

What's the worry?

You've always said that I overthink.

But see what happened.

TK is still under my charge,

but I wasn't notified first

when something as major as this happened.

Su Xiao is the reform team's Chief Director.

She's investigating in TK.

Naturally, she's informed first.

Then why didn't she

notify me?

Instead, she reported to the president directly.

Perhaps she was negligent.

I'll remind her later.

Zhiping, you know that's not what I meant.

I want you to know

that I'm not overly sensitive.

When I volunteered to go to the construction site,

the president didn't let me.

Fine. No problem

I suggested having Zhao Peng go with Su Xiao.

It was again rejected.

What's wrong with the Deputy Chief

going with the Chief Director?

How is that not okay?

Is that a bad idea?

Why did the president make

someone like He Congrong, who knows nothing

to go there with Su Xiao?

What do you think is the reason?

Stop pretending that you don't know.

Among all the people in the Yinghai Group,

you know the president

the best.

Mingyu, I have to say this again.

Yinghai belongs to every one of us.

not to you,

and it doesn't belong to the president, either.

It belongs to all of us.

I, too,

want everyone to benefit.

But judging the current situation...

Never mind. I'll stop nagging.

You'd say that I'm too sensitive.

I want my money back.

According to the contract,

a creditor is legally permitted

to demand an early repayment in a debt

from the debtor

when a debtor is found to be at risk of not making repayments.

Do you dare to say that TK has no cash flow deficits?

TK's fundamentals have not changed.

There are

temporary liquidation issues.

How could you make financial losses

only temporary liquidation problems?

I'll be blunt.

I have my sources to prove

that TK cannot recover

from the huge losses

even if

all the houses built

are sold out.

Hear me out...

Let's cut to the chase,

be frank,

and not waste our energy.

Alright. Please tell me

your terms and conditions to resolve it.

Three days.

Yinghai must pay me the 80 million principal

and the incurred interests.

Do we have a deal? Make your call.

Yinghai Group has its executive management,

the Board, and shareholders.

There are procedures in place.

The lump-sum is $80 million, not eight thousand yuan.

It'll take at least one month to approve the fund

following all the procedures and meetings.

Three days is not enough time.

That's it then.

Excuse me, Mr. Cui,

TK has gone too far

on advanced construction on All-Stars Plaza,

causing negative cash flow

and hence the problem.

Bringing gagsters to the construction site

will only make everything

worse.

It'll affect TK's ability to fulfill obligations.

You are

shooting yourself

in the foot.

I'm fully aware that you're extremely good with words,

so I won't bother arguing.

See for yourself.

These are the documents

I filed at the court yesterday.

Notice of a Lawsuit

Confirmation Letter of Disputes

Certificate of Service

I have filed to secure a lien on the equipment outside

for the debt of 30 million

you borrowed from me last time.

The pre-litigation property preservation application

was also filed at the court.

The case will be opened and in effect

in seven days.

Mr. Cui,

this is extreme.

Now the paper's served.

We can finally talk heart-to-heart.

The preservations of property before a proceeding is brought to court...

That's what's served.

I see.

Tell Su Xiao that

she cannot give any promises.

Use every means she has

to hold him off for now.

Buy us time until Mr. Gao completes the investigation.

Got it.

Don't make any promises. Buy more time for Mr. Gao

Mr. Cui,

it seems that

you loaned out more funds

after Xia Ming took over TK.

Doesn't this mean that you trusted him?

When Fat Huang came to me for loans,

I never lent him as much.

I know that

he was under Yinghai Group,

and there are many restrictions and limitations.

Then it struck me

that the younger folk

might be more flexible in business.

Hey you,

what did you say to me back then?

You said that we'll make a fortune together

by selling off the All-Stars Plaza properties.

Who'd know in the end...

Cut it off. No more ancient stories.

We'd better focus on how to resolve the debt.

Businesses make and lose money, and it's normal.

Yinghai Group

will not leave TK in the lurch.

But if you

drive Xia Ming off a cliff,

Yinghai may decide to file TK for bankruptcy

in which no assistance will be offered.

The compensation you receive at that time

will be even more limited.

I would rather believe that

Xia Ming can still pull it off and turn things around.

Mr. Cui,

you might as well believe in him till the end.

Please give him another chance.

Three days.

In three days,

I must receive a response.

Thank you, Mr. Cui.

TK is really at losses.

Don't bother anymore.

Time to leave.

There's nothing more you can do.

I don't believe it.

It can't be true.

TK's deficits

surfaced after Huang Lilin came down with a stroke.

But the root cause

is Xia Ming.

You've known Huang Lilin well.

He plans carefully

and does things one step at a time.

He doesn't spend more than he has.

Xia Ming is not like that.

He's bolder and more aggressive.

He recruited many people,

and took on quite a few good projects.

Throughout the years,

TK seemed to have expanded

and grew under his management,

but the labor costs

and interest

have been increasing

significantly over time.

Since the projects went well for the first two years,

these problems weren't noticeable.

But this year,

with advance construction on All-Stars Project,

and Huang Lilin's stroke,

these issues broke off.

Simply put,

they've taken too big of a step forward,

to have tripped themselves off.

Can TK sustain with help?

It has solid business foundations.

If it gets Yinghai's resources, it'll be fine.

But the problem is that there's a lack of funds in Yinghai.

We aren't able to help.

Once the litigation proceeds, TK's over.

It's better to make a decision early, Mr. Zhao.

Since we are going IPO,

non-performing assets have to be divested.

Excuse me, Mr. Zhao,

I didn't know that you are here...

It's okay.

What time is it?

It's almost time to leave.

What were you doing here?

We are investigating TZ,

and we duplicated a video from here a few days ago.

I know you...

Su Xiao and I were classmates in college.

I was one year above her,

but we lived in the same dorm room.

After graduating from college,

I've worked for Yinghai

until now.

Have you ever thought about changing jobs?

Never.

I value

the opportunity to work in Yinghai Group.

Probably because of how I was raised

at home.

My parents always said to me

that the factory is their family

because they are the employees.

I was born in a factory and grew up there.

I went to kindergarten,

elementary school, middle school, and high school in the factory.

To date, every time my parents call me,

they often lecture me

to follow the leader,

do more, and complain less.

Your parents are great,

and not many people think like them now.

How's work

at the reform team?

It's all good.

I appreciated the opportunity, Mr. Zhao.

I'll take off now, Mr. Zhao.

Mr. Zhao.

Mr. Zhao.

It's been a long day, Mr. Zhao.

TK's current situation

is unexpected,

but it's not completely out of whack.

A talented person

can have impressive achievements,

but the risks they take on are usually astonishing.

Sometimes they could be lethal.

Zhiping made a good point.

TK's failure resulted from

the blind expansion Xia Ming led.

Maria, please arrange a training,

in which Mr. Xu will talk about risks

to the mid-level and senior managers.

Everyone should learn from the case.

Sure.

What should we do with TK?

For one thing,

the creditors of TK are very hard to deal with.

Divestiture is best done early

to minimize the negative effects on Yinghai.

And here's the big picture.

Yinghai is going IPO.

For that reason alone, we need to separate the bad assets.

as soon as possible.

I agree.

Have you heard that No.13 line

has extended further.

Isn't that more convenient?

It sure is.

The housing along the extended line

is going to rise.

You bet.

Land-use Plan of Songjiang District, Shanghai

Map of Songjiang District

Shanghai Metro: Plan for Line 9

Line 9

I heard that

Lin Xiaoming was trying to get him involved in

the real estate business,

but he refused.

Bigger isn't better.

This is merely a wasteland.

What a treasure!

You must have been a bricklayer in the past.

I was a bricklayer my whole life.

Judging from your craftsmanship,

you must have been a team leader for bricklayers.

Back in the old days,

over a hundred people worked under me.

Do you live here now?

The land should be for agricultural use.

And that building should also be temporary.

Young lady, you know quite a lot!

Are you also in this field?

Which company do you work for?

Yinghai.

Yinghai?

I worked for Yinghai, too.

How come you end up living here?

Well, here's the thing.

After working as a bricklayer for my whole life,

I still couldn't afford a house.

The old house in my hometown has been unoccupied

and eventually collapsed.

Xiao Xia arranged for us to stay here.

Xiao Xia?

Xiao Xia also works for Yinghai.

Don't you know him?

He's from TK.

I do know him.

Look. All of us here

used to work for TK.

Now we are retired

and not strong enough to work at job sites anymore.

For many different reasons,

we cannot return to our hometowns, either.

Xiao Xia knew

and arranged for us

to garden and do chores on this land.

We have a fixed income every year.

It's nice.

What are you doing here, young lady?

I'm a friend of Xiao Xia.

I happened to pass by, so I stopped by to check it out.

Xiao Xia is a nice person.

You're not planning to keep living here, are you?

This is a temporary building.

Xiao Xia said that

Houses will be constructed here in the future.

At that time,

he'll also arrange a place for us to stay.

Young lady,

when you go back, please tell Xiao Xia

that we are all doing well

and can take care of ourselves.

Tell him not to worry.

Would the president agree to the divestiture?

Yinghai held the meeting yesterday.

As I anticipated,

they don't want to have anything to do with it.

Mr. Cui.

They don't want it to affect

the IPO, either.

So,

the decision to divest has been made and approved.

Finally, all the obstacles are cleared.

TK is going to be ours soon.

Hello, Xiao Xia.

Here you are, Xiao Xia!

I'll be responsible for their lives.

You do what you should do.

I don't think anyone would

truly understand

what you did here.

The management would only think

that you are concealing this land deliberately

so that

TK can make a comeback

after the split-off.

It's not wrong for them to think this way.

You dug

such a big hole,

and everyone fell into it.

Have you ever considered

what the president would do

once he finds out?

Since I have started it,

I am willing to bear the consequences.

Xia Ming,

is there no other way

to make both Yinghai and TK

have a better ending?

Do you know that

you're walking a tightrope?

You know well enough

what Yinghai Group is like.

I've waved the white flag.

And now

the future of everyone in TK.

is in my hands.

There's no going back.

Don't worry.

Please do what you have to do.