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ANDREW DAVID W.Y.
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04 / CAPITAL FLOW & REINVESTMENT
Capital Operations · Cash Cycle and Bubble Absorption
A positive-return-driven cash cycle and bubble absorption: from capital solicitation at 40% annualized to an IPO value leap
Capital · Original Diagram Redrawn / Source: PDF Page 1
04
Reinvestment Path
Trading and Cash-out
Path
Consumption Absorption Path
High-return incentives → Channel/end-customer expansion → Consumption + reinvestment cycle → Positive operating revenue supporting an IPO
In essence: cashing out through an exchange is fast; continued investment takes longer to realize, but offers greater return value
40% annualized
Business + Economic Model
Traditional channel
recruitment model
Private-domain economic model
Attract
Customer
Expansion
Dispersed
Holdings
Channel
Customers
End Custom
ers
Bubble
Bubble
Control
Circulation
Starting
Point
Majority + Cash
Small Portion Cashed Out
Guide increased
investment
Invest using profits
Business Investment
Rights Investment
Equity Investment
Equipment Intelligence
Business
Smart Equipment Sharing
Business
Annual dividend right in company
operating revenue
IPO Restricted
Shares
Positive-revenue
business
Expected future
value
Seed Venture Pre-A A B C D Pre-IPO
Meets Listing
Requirements
IPO
Exchange
Dispersed
Holdings
Withdraw Funds
/ Cash Out
Aggregate
Buy Orders
Attract retail investors — require members to promote the value of exchange-listed
assets as widely as possible
Capital leaving — closely monitor the exit rate!!!
Retail Investors
Increase Holdings
Positive news needed in the short term
Long-term value investing requires a view of future value
Rolling Reinvestment
DRIP
Obtain rights usable for cash investment after
pledging assets
Earn asset-denominated interest returns after
locking assets
Gold-denominated investment returns;
equity investment dividends
Token-denominated NFT mining-machine
investment returns
Limited Partnership LP
Consensus Holding
+
Cash
Increase
Consumption
Essential Consumption
Demand
Cultural and Experientia
l Consumption Demand
Premium Consumption
Demand
Use supply-chain capabilities: cash + assets, with gross margin at price parity with Taobao
Offer AI technology products at widely recognized market prices (high gross margins)
Domestic and overseas marketing conferences, events, and incentive travel
Study Travel with Certificates
Introduce external low-cost, high-value consumption options
Other premium consumption such as jewelry and luxury goods: pay costs in cash and gross margin in assets
Offset Cash-o
uts
Cash Flow from Part of
the Business Results
Raise Funds
Financing through
Traditional Channels
Cost Outlay
s
Business & Operations
Legend
Passive Investment
Customers
Active Investment
Customers
Logic of Controlling
Tradable Holdings
Principle: 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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