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04 / CAPITAL FLOW & REINVESTMENTCapital Operations · Cash Cycle and Bubble AbsorptionA positive-return-driven cash cycle and bubble absorption: from capital solicitation at 40% annualized to an IPO value leapCapital · Original Diagram Redrawn / Source: PDF Page 104Reinvestment PathTrading and Cash-out PathConsumption Absorption PathHigh-return incentives → Channel/end-customer expansion → Consumption + reinvestment cycle → Positive operating revenue supporting an IPOIn essence: cashing out through an exchange is fast; continued investment takes longer to realize, but offers greater return value40% annualizedBusiness + Economic ModelTraditional channel recruitment modelPrivate-domain economic modelAttractCustomer ExpansionDispersed HoldingsChannel CustomersEnd CustomersBubbleBubbleControl CirculationStarting PointMajority + CashSmall Portion Cashed OutGuide increased investmentInvest using profitsBusiness InvestmentRights InvestmentEquity InvestmentEquipment Intelligence BusinessSmart Equipment Sharing BusinessAnnual dividend right in company operating revenueIPO Restricted SharesPositive-revenue businessExpected future valueSeed Venture Pre-A A B C D Pre-IPOMeets Listing RequirementsIPOExchangeDispersed HoldingsWithdraw Funds / Cash OutAggregate Buy OrdersAttract retail investors — require members to promote the value of exchange-listed assets as widely as possibleCapital leaving — closely monitor the exit rate!!!Retail Investors Increase HoldingsPositive news needed in the short termLong-term value investing requires a view of future valueRolling Reinvestment DRIPObtain rights usable for cash investment after pledging assetsEarn asset-denominated interest returns after locking assetsGold-denominated investment returns; equity investment dividendsToken-denominated NFT mining-machine investment returnsLimited Partnership LPConsensus Holding+CashIncrease ConsumptionEssential Consumption DemandCultural and Experiential Consumption DemandPremium Consumption DemandUse supply-chain capabilities: cash + assets, with gross margin at price parity with TaobaoOffer AI technology products at widely recognized market prices (high gross margins)Domestic and overseas marketing conferences, events, and incentive travelStudy Travel with CertificatesIntroduce external low-cost, high-value consumption optionsOther premium consumption such as jewelry and luxury goods: pay costs in cash and gross margin in assetsOffset Cash-outsCash Flow from Part of the Business ResultsRaise FundsFinancing through Traditional ChannelsCost OutlaysBusiness & OperationsLegendPassive Investment CustomersActive Investment CustomersLogic of Controlling Tradable HoldingsPrinciple: establish a business model with positive operating revenue, shift channel and end customers from speculation to value investing,transfer the bubble to the company's future development (IPO), and eliminate part of the bubble through consumption.yutengfei.com · Andrew David W.Y.
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