Chapter 217: Fixed Asset Calculation Method
The next morning, Pei Qian got out of bed and opened Aili Island's creator dashboard to check on his video.
It had gained a few views, with some comments and bullet chats, but overall it was still pretty quiet.
The comments and bullet chats were basically things like "Holy crap," "Rich guy," "Budget explosion," and "Too much money to burn."
Since this was a brand-new account, with no promotions and no followers, and uploaded to the digital section of Aili Island, it only got a trickle of natural traffic. After a whole night, its exposure was basically negligible.
Pei Qian didn't care though. He hadn't expected many people to watch it anyway.
If someone really did recharge, or if he could get a tiny cut from the incentive program, that would just count as some pocket money—nice to think about.
As he was munching on snacks while watching anime, the system's light screen suddenly unfolded before him.
[Wealth Conversion System]
[Host: Pei Qian]
[Profit Conversion Ratio: 100:1 | Loss Conversion Ratio: 1:1]
[Next Settlement Date: 93 days]
[System Funds: 2.43 million yuan (↓5.57 million)]
[Personal Funds: 45,691.4 yuan]
[Fixed Assets: One Mingyun Villa residential-commercial property (6.22 million)]
[Personal Funds: 357,412.5 yuan]
[Special Task This Cycle: "To Win Some, Lose Some—That Is the Way of Business."]
[Host appears overly fixated on temporary profits. Such a mindset does not befit a true business prodigy. Suggested objective for the next cycle: have at least one financial loss.]
[Reward for Completing Special Task: A mysterious surprise within system rules.]
[Special Notice:]
[Company fixed assets will be counted at 10% of the system's valuation and included in system funds, affecting settlement results.]
[Regenerating system funds value]
[System Funds: 2.43 million + 620,000 (↓4.95 million)]
[Fixed Assets: One Mingyun Villa residential-commercial property (6.22 million)]
[Personal Assets: 357,412.5]
Pei Qian froze with a potato chip halfway to his mouth.
What the hell does this mean?!
He carefully read through the contents on the system screen and, upon seeing the "Fixed Assets" section, vaguely began to understand.
Previously, almost all of his big purchases had been rentals—like office buildings, cars, etc.—so the [Fixed Assets] entry was never triggered.
Of course, the desks, furniture, office supplies, and other things bought for the company and the internet café should technically also count as company property, but they never showed up under [Fixed Assets].
Probably because those items were too cheap for the system to even bother acknowledging.
But now, after he'd bought a 6-million-yuan villa, the system could no longer ignore it.
According to the system's explanation, large-scale fixed assets would be appraised, and 10% of that valuation would be folded into system funds, affecting the final settlement.
Pei Qian had just spent a huge amount of money on the villa. Right now, the company's account balance is 2.43 million. Since the initial system funds were 8 million, under the original rules this should have been counted as a 5.57 million loss.
However, with the new calculation, the villa's valuation (6.22 million) was factored in at 10%, meaning only a 4.95 million loss:
8 million – (2.43 million + 6.22 million * 10%) = 4.95 million!
The system's latest display of funds—2.43 million + 620,000—meant that the 2.43 million was liquid funds in the company's account, actually usable, while the 620,000 was 10% of the villa's valuation, just a virtual number. It couldn't really be spent, but it still took up system funds and affected settlement.
Pei Qian scratched his head. His first reaction was that he honestly couldn't tell whether this was a good deal or a bad one.
Clearly, though, this new rule relaxed the restrictions on buying large fixed assets.
If large-scale assets like this weren't counted toward system funds, then Pei Qian could just go on a shopping spree later. As long as the cash flow didn't break, he could keep buying buildings to manufacture losses.
(Of course, there had to be a legitimate reason—no speculation, no living in them himself. It had to be like this time, where it was for business operations.)
For example, if he had 10 million in system funds left, he could take out 7 million to buy another villa (then casually find some "business purpose" for it). Just like that, he'd be left with only 3 million. Compared to the original 8 million in system funds, that would easily count as a 5-million loss.
Clearly, that would make losing money far too easy.
That's why fixed assets also had to be included in system funds.
But if fixed assets were counted in full, there would be a huge problem.
The starting system funds were only 8 million. If Pei Qian bought a villa worth 10 million, and that entire 10 million were added to system funds, then no matter how hard he tried he'd never be able to show an 8-million loss—unless he mortgaged or sold the property…
So the system chose a compromise.
Large-scale fixed assets would only be factored in at 10%. That way, Pei Qian wouldn't be completely forbidden from buying them when trying to lose money, but at the same time, he also couldn't achieve huge losses too easily by brainlessly snapping up real estate.
"Ah… if you look at it in a bad way, that's yet another get-rich-quick loophole the system just sealed off. It's always one step ahead of me…"
"But if you think about it in a good way, I probably wouldn't even have realized this if the system hadn't pointed it out…"
Pei Qian suddenly realized: even though buying fixed assets would affect settlement, it was still a valid way to spend money!
Suppose he managed to drive system funds down to 10 million. At that point, he could buy another villa or commercial property for, say, 5 million. Then the system funds would look like this:
10 million – 5 million + 5 million * 10% = 5.5 million.
That would still count as a loss of 8 million – 5.5 million = 2.5 million!
Of course, there was a risk. If he held too many fixed assets and one of them suddenly skyrocketed in valuation, system funds would also soar.
Say his villa's valuation suddenly jumped to 30 million. Then at 10%, that would add 3 million to system funds.
10 million – 5 million + 30 million * 10% = 8 million.
That would completely wipe out the loss!
Even worse, if Pei Qian had accumulated too many fixed assets, then even at 10% their combined valuation could exceed the initial system funds. In that case, even if he spent every last cent of liquid company funds, he wouldn't be able to show a loss.
Unless those assets depreciated, or he sold them all off for cash and spent it again.
In short…
Opportunity and risk went hand in hand.
After crunching all these numbers, Pei Qian felt his head starting to ache.
"What the hell? Even losing money takes this much brainpower? The rules are getting more and more complicated…"
He decided to put this matter aside for now.
When his system funds grew larger, say twenty or thirty million, then spending a few million on a shop would only add a few hundred thousand to system funds. That would be cost-effective.
But for now, his system funds were still on the low side. Buying too many properties carried the risk of backfiring, so better to hold off.
To play it safe, it would be best to save real estate purchases as a last-minute spending tactic.
For this cycle, he would just stick with the one mixed-use villa and focus on running the high-end restaurant into the ground.
Since the system had already given him the prompt, that meant the villa purchase had gone through and the paperwork should be complete.
Pei Qian called Assistant Xin and asked her to drive him over to the Mingyun Villa branch of Moyu Internet Café.
He wanted to arrange the layout for the high-end restaurant and also check whether the surrounding business environment had changed in any unexpected ways.
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