After rebirth, I became a great master

Chapter 629 The Third Largest Shareholder

The original plan was for five rounds of negotiations.

In fact, the cooperation framework was basically finalized in the second round of negotiations.

There are two main points.

First, the controlling shareholder was removed.

In other words, the largest shareholder must hold less than 50% of the shares.

Second, introduce third-party partners.

That is, Zhongbo Software.

The reason it was able to proceed so smoothly is related to Zhou Haoran's past planning.

Because of Zhongbo Software's monopolistic nature.

At present, Fudan University has a technological monopoly. In China, only Professor Gao Xiangwen's team has developed a domestically produced smart card radio frequency chip, which is indispensable.

In fact, Zhongbo Software also holds a monopoly position.

This is a monopoly at the market level.

It is Zhou Haoran's "ecological thinking".

The smart card project is a combination of hardware and software, requiring the development of both software and systems, as well as supporting radio frequency chips.

Zhongbo Software develops smart card systems.

Many teams in China can develop this system, and it is much easier than developing a chip in China.

However, no one can shake Zhongbo Software's monopoly position.

Smart cards require a combination of hardware and software.

In the past, Zhou Haoran arranged for Yangyang to be the exclusive distributor of Mikron's radio frequency chips. He also used the reputation of universities and TV stations to build an industry brand. This resulted in even if a team developed a smart card system, they could not get radio frequency chips or win customers.

Without a market, naturally no one will develop it.

This gave Zhongbo Software no competitors in the market, giving it a monopolistic position.

Only Fudan University has domestically produced chips, and only Zhongbo Software has domestically produced operating systems.

To quickly capture the market and complete Fudan Microelectronics' listing on the capital market within two years, the fastest way is for both sides to get involved. The university has the technology and team, the local government has the funds and policies, and Zhongbo Software has market and operational experience.

Hit it off immediately!
There is an even more important point.

These days, there are too few listed companies.

For local governments, having even one more listed company in their area is a significant achievement. If it's a semiconductor-related company listed on the Hong Kong Stock Exchange, it's the crown jewel.

Therefore, the local area is the most eager for this cooperation.

We want to reach a cooperation agreement as soon as possible!

……

"The basic framework has been set. It's a three-way cooperation, and Zhongbo Software's shareholding should exceed 20%."

In the Red Mansion Teahouse, Zhou Haoran explained the basic situation to Sister Yangyang and Qiao Hai.

Xu You returned from the United States to discuss the establishment of a branch of the Trademark Network with Mr. Da, and also became involved.

"20%?" Qiao Hai was somewhat surprised. "That much?"

Zhou Haoran said, "The state-owned assets are the largest shareholder, with more than 40% of the shares. The university is the second largest shareholder, with more than 30% of the shares. Zhongbo Software is the third largest shareholder, with 20% of the shares."

"That's great!"

Qiao Hai was very satisfied; he really hadn't expected to get so many shares.

It seems like this collaboration is quite equal!
Xu You, who had been working in the United States, was not very familiar with the situation in China and was taken aback. "Really? The shares are distributed like this?"

Zhou Haoran smiled and said, "Yes, that's the basic framework. The specific amounts will be discussed in the third round of negotiations. A few percentage points more or less won't matter much."

"No! No!" Xu You felt he had overlooked something. "Where's the research team? Didn't you say this is the first domestically developed radio frequency chip? This is top-notch technology!"

"Uh……"

Zhou Haoran twitched the corners of his mouth.

Xu You continued, "There are also stock options and management shares! Since we want to operate in a standardized manner and list within two years, all of these need to be arranged!"

Zhou Haoran said, "What you're talking about is American thinking. Trademark.com can do it that way, but this is different."

In a typical technology company, the research team usually holds a significant percentage of shares.

At least 40%.

Especially for someone like Professor Gao Xiangwen, who has a monopolistic technology that is unique and unparalleled, the entire company relies on this technology to operate... It's normal for many foreign technology companies to give this team 70% or 80% of the shares.

Only in this way can we attract and retain talent.

After the rise of the domestic internet industry, it adopted the same share distribution strategy as foreign companies, which led to a gathering of talents in the internet industry, with elites from various industries being poached by internet companies.

Compared to earning a fixed salary, working for an internet company to earn shares and stock options, and then helping the company go public, is a way to achieve financial freedom and leapfrog your life.

However, Fudan Microelectronics, which was established through the cooperation of the three parties, is a state-owned company.

This is different.

Zhou Haoran said, "This is a state-owned company, and no one dares to easily promise state assets to the core team. When the shareholding is reformed later, Professor Gao should be able to get some shares, but not too many, a few per thousand would be good enough."

"How can we do it this way?"

Xu You shook his head repeatedly.

Isn't this treating scientific research talents like idiots?

Qiao Hai also felt it was inappropriate: "Professor Gao's research achievements are the core of Fudan Microelectronics. Giving him so little would be disheartening..." "You're overthinking it." Zhou Haoran shook his head. "Professor Gao is just a university professor, earning only two thousand yuan a month. Giving him some stock would be worth hundreds of thousands, which is more than enough."

"you……"

Xu You found this absurd and thought that doing it this way would definitely not work.

Ji Yingyang empathizes with this sentiment. She used to work at the drama center under the Red Star Broadcasting Art Troupe before switching to a foreign company. She said, "This is the downside of working within the system, especially with a permanent position. The advantage of a permanent position is a stable job. However, everything has two sides; there are advantages and disadvantages. With a permanent position, you have to follow orders and obey commands, and research results belong to the state."

Zhou Haoran laughed and said, "Yes, Yangyang is right. Professor Gao's research achievements are national assets and have nothing to do with him. He enjoys the benefits of a secure job, but there are always trade-offs."

"This is going to cause trouble!"

Xu You was not optimistic about this arrangement. He had seen too many similar things in Silicon Valley. Unequal distribution of profits was a life-or-death issue for many startups.

Zhou Haoran said dismissively, "You're overthinking it. That's American thinking. Many people in China, especially the older generation, have simpler ideas. Their output is a national asset; the country nurtured them. Public opinion and morality also side with the collective to restrict individuals. Anyone who dares to stand up for their own rights can easily fall into ruin."

"The collective is an imagined community, an illusion. Only individuals are living, breathing people. Caring for individuals is caring for each and every one of them."

Xu You has spent too much time abroad and is no longer compatible with the domestic environment.

Zhou Haoran laughed and said, "That's American thinking. Self-interest isn't encouraged in China."

Xu You said decisively, "If we do it this way, Fudan Microelectronics is definitely doomed. There won't be any major technological development. Without stock options and benefits, it's impossible to retain top talent. Those excellent chip engineers will still go abroad."

Zhou Haoran was powerless to do anything about it.

He couldn't change the underlying logic of this state-owned holding structure.

This will shape the landscape of China's technology industry over the next twenty years.

Highly skilled internet professionals are returning to China from abroad.

Internet companies are very generous; they offer stock options and make huge concessions on profits. Offering enough benefits is the greatest form of respect.

The semiconductor industry is different.

This industry requires too much investment and carries too much risk, so it must be supported by state-owned enterprises... This is true not only in China, but also abroad. In the early stages of the development of the semiconductor industry in Europe, America, South Korea, and Japan, they all received strong support from state funds.

The market alone cannot sustain this industry.

But here comes the problem.

The support policies differ between China and other countries. In other countries, funds are directly given to private enterprises, allowing them to spend and operate as they please. In China, state-owned enterprises often intervene directly because there are many fraudsters among private enterprises, and there is a fear that giving funds to private enterprises might lead to scams and deception.

Once it becomes a state-owned enterprise, it can't just give out large amounts of stock to talented people, offer them exorbitant salaries, or continuously promote them beyond their station like private enterprises do...

State-owned enterprises have strict rules and regulations.

State-owned enterprise stocks are all national assets; who would dare to give them away so easily?

If this door is opened, what will be introduced will not be highly skilled personnel, but rather a large number of people with connections who will impersonate others and seize state assets.

This underlying logic forces Fudan Microelectronics to do this.

Professor Gao's team would be lucky to get even a few thousandths of the shares.

This is a safety net.

Even if someone with connections impersonates someone to get in, they will at most get a few thousandths of the shares, which will not cause much damage or impact on the company as a whole.

This results in insufficient benefits being offered.

Seniority also plays a role.

Some young semiconductor engineers go abroad and earn millions a year. In China, because of their lack of experience and weak connections, they only earn a basic salary of two thousand yuan.

The loss of talent is inevitable.

Zhou Haoran laughed and said, "Actually, there's no need to worry too much. Fudan Microelectronics' core business is just smart cards. What kind of technological content can this thing have? It's only relatively rare in China, but it's commonplace abroad. Once the industry develops, technology won't be important anymore, and we won't need those high-level talents. The main focus will be on the market."

"If we only focus on smart cards, there's not much of a future for us."

Xu You shook his head.

Zhou Haoran said meaningfully, "If we can do a good job with the smart card business, survive without going bankrupt, and not become a burden on the local government, and do not need taxpayers' money to continue subsidizing it, then that would be a blessing for the people of the whole country."

The port area is highly market-oriented.

Even if Xu You didn't think much of it, Fudan Microelectronics was already excellent enough, far surpassing many well-known university-affiliated enterprises.

If it doesn't work, Zhou Haoran won't get involved.

Qiao Hai nodded and said, "The market for smart cards seems to be picking up!"

"They're already up."

"It's different, someone's trying to poach our staff."

"Ok?"

Zhou Haoran raised his eyebrows.

Qiao Hai said, "Yesterday, a technical director resigned. This morning, the vice president in charge of marketing also submitted his resignation. It's definitely not a coincidence; someone is pulling the strings behind the scenes."

Ji Yingyang said calmly, "It's not surprising at all. They snatched the distribution rights for Micron's RF chips. Now, they have the hardware, but not the software. Next, they'll probably poach a lot of people to build the software system."

Zhou Haoran asked, "Who left? A Fudan alumnus?"

"Huh?" Qiao Hai shook his head. "No, they're all from other schools. The technical director is from Zhejiang University, he's quite capable, it's a pity he left. As for the vice president, forget about him, he didn't even finish high school. The platform's resources gave him the opportunity, but he thought it was due to his own abilities."

Ji Yingyang suggested, "How about we improve the overall compensation?"

"No need. They chose their own path, let them do whatever they want!" Zhou Haoran was now full of confidence. With Fudan Microelectronics about to be established, why would he care about a few rats jumping around behind him? "Just keep the core team, and the rest... let them do whatever they want!"

Xu You agreed, saying, "Smart cards don't really have much technological value. They'll probably be everywhere across the country in less than two years. There's no need to treat them like treasures."

Zhou Haoran said, "Yes, the most important thing in this industry is the market, not the technology."

(End of this chapter)