Returning to his senior year of high school, he went all in and made billions by buying at the botto

January 11th.

Nine o'clock in the morning.

Changhu International Center, headquarters of Douyin Group.

Two additional security checks have been temporarily added outside the No. 1 conference room of the group.

All attendees are required to sign a confidentiality agreement before entering the meeting room.

Not many people showed up today.

Lin Wan, Liu Xin, Liu Fei.

Chen Liping and Zhang Nan of Douyin Group.

Liu Ming, General Manager of Deer Technology, and Zhang Hai, Technical Director.

Hu Tao, head of the industrial investment department of Xingchen Technology.

In addition, there were several core executives from the group's finance, legal, audit, human resources and industrial synergy departments, as well as Lin Wan's secretary.

This was Hu Tao's first appearance at the Star System's highest-level annual meeting.

He is 37 years old this year. In his early years, he worked in mergers and acquisitions at a leading securities firm in China. Later, he moved to a private equity investment institution and participated in Internet, consumer electronics and advanced manufacturing projects.

Last October, Lin Wan recruited him from Shanghai to Changhu to be in charge of reorganizing Xingchen Technology's industrial investment department.

The new person in charge doesn't talk much and is used to breaking down all projects into four columns: price, rights, risks, and exit paths.

Even when facing Chen Mo, he rarely used unquantifiable expressions such as "broad prospects" or "significant strategic importance".

Only two seats were reserved at the very front of the long table.

Chen Mo sat in the main seat.

Lin Wan sat to his right.

At 9:00 AM sharp, the conference room doors closed.

Lin Wan opened the red folder in front of her.

"Before we begin, I'd like to reiterate three points."

"First, we are using the internal management standards of the Starry Sky Group today, which are not equivalent to the statutory consolidated financial statements of any company."

"Different companies have different equity ratios, consolidation scopes, and audit requirements, so revenue and profit cannot be directly added together."

"Second, the valuation of Douyin, the equity value of unlisted companies, and bank credit lines are not included in cash or annual operating profit."

"Third, the projects, data, and equity arrangements involved today are all under the highest level of confidentiality within the group."

Lin Wan's gaze slowly swept across the long table.

"Anyone who discloses this information to personnel outside their authorized scope will be immediately dismissed and will be held legally accountable in accordance with the confidentiality agreement."

The people present signed their names one by one.

The staff collected the documents.

Lin Wan turned to the first item on the agenda.

"The Industrial Investment Department will report first."

Hu Tao got up and placed the six folders on the table one by one.

"As of January 8, all six direct equity investments that Xingchen Technology identified last year have been completed."

The first company appeared on the projection screen.

Pinduoduo.

"Xingchen Technology invested 80 million yuan to acquire 20% of Pinduoduo's equity."

"The business registration change, fund transfer, and director appointment have been completed."

"The founding team retains operational control, while StarCraft has a board seat, pre-emptive rights, and conventional investment protection rights."

"Douyin will provide 100 million yuan worth of GG and content resources in its first year, of which 30 million yuan is part of its free strategy quota."

Chen Mo nodded.

This was precisely the boundary he established during his negotiations with Huang Zheng.

A second company appeared on the screen.

Accelink Technologies.

"The issues of customer concentration, overseas listing structure, and early shareholder exit discovered during the due diligence process have all been incorporated into the formal agreement."

Hu Tao said.

"The final deal remains consistent with the initial framework."

"Xu Chuangtou's pre-investment valuation is 4 billion yuan."

"Star Capital invested 1.5 billion yuan, of which 1 billion yuan was invested in the company as capital increase and 500 million yuan was used to acquire existing shares from Google Capital, Lightspeed Venture Partners and some early shareholders."

"After the transaction is completed, Xingchen will hold 30% of the shares."

"Xingchen has acquired a full board member and an observer, and the new NT$1 billion has been deposited into Xuchuang's account, which will be mainly used for 100G capacity, next-generation high-speed optical modules, equipment procurement and working capital."

Although the people in the conference room knew about the deal beforehand, their expressions changed when they heard that the 1.5 billion yuan transaction had been completed.

Liu Xin glanced down at the materials in front of her.

Xingxin Mining integrated resources from most of the western province, and the cash it used was not much different from this investment.

Hu Tao did not comment on whether the price was high or low, and continued to the next page.

"Little Sweet Potato, Xingchen invested 300 million yuan to acquire 10% of the shares and a seat on the board of directors as an observer."

"The company will continue to be operated independently by the founding team. Xingchen and Douyin will only retain priority cooperation rights in content distribution, brand GG, and future cross-border e-commerce."

DJI will not accept additional share issuance.

"The Industrial Investment Department acquired a 3% stake from two early financial shareholders for 500 million yuan."

"miHoYo accepted an investment of 2 million yuan from Xingchen, holding a 15% stake."

"The founding team will maintain absolute control. Douyin will provide game content promotion and overseas distribution testing, but neither party will establish an exclusive partnership."

The last page is about LandSpace.

"Xingchen Industrial Investment paid 60 million yuan to formally acquire the 40% stake held by the original industrial fund and obtain the right of first refusal in the next round."

"The original management team will continue to be responsible for operations and technology."

"As of now, the company is still in the stage of building its team, engine solutions, and supply chain, and has not yet generated any revenue that can be recognized."

All six investments have been reported and completed.

The total number appears in the bottom right corner of the screen.

26.4 million yuan.

"This is the actual amount of money used to complete the transaction, not the project valuation."

Hu Tao said.

"Most of these are long-term equity interests, and there are currently no plans to exit them, nor have the unrealized appreciation been included in Xingchen Technology's annual profit."

"The annual assessment of the six projects by the Industrial Investment Department does not use the rate of return within one year as an indicator."

"We first look at whether the founding team remains stable, whether the funds are used as agreed, and whether the technology and user growth have deviated from the original logic."

Chen Mo asked, "Were there any projects that you rejected?"

"nine."

Hu Tao answered very decisively.

"The business models of the three companies are inconsistent, the founders of two companies have related-party transactions, and the offers from two companies are beyond what we can accept."

"There are two other projects with good technology, but Xingchen cannot provide additional industrial synergy. Continuing to invest in them is just chasing trends."

"The list and reasons for withdrawal are in the attachment."

Chen Mo did not ask him to repeat the nine projects: "Keep this standard in mind."

"clear."

Hu Tao sat down.

Lin Wan turned to the next item on the agenda.

Xingxin Mining.

Liu Xin had been waiting for a while and was getting restless.

He didn't bring the prepared speech notes, but just spread a few maps on the table.

"Let me talk about resources first."

"As of the end of last year, Xingxin had completed the acquisition, holding, joint venture, or long-term sales of fluorite, lithium and rare metal resources in Xi'an that met the conditions for market-oriented integration, accounting for 71.8% of the reserves."

"The rest are not things you can't take."

"Some mining rights are unclear, some have too many environmental and safety deficiencies, and some quotations are completely out of touch with reality."

Liu Xin tapped the map a few times with his large fingers.

"As President Chen said before, integration is not about grabbing any mine you see."

"Let whoever wants to tackle the remaining tough nuts take on the task. We'll focus on managing the mines we've already acquired."

Liu Xin, who used to rely on drinking parties, personal connections, and a ruthless spirit to make his way in the county's mining industry, now speaks more and more like the head of a large mining company when talking about reserves, rectification costs, and cash flow.

The screen switches to business data.

In 2015, Xingxin Mining's operating revenue was 23.8 billion yuan.

Net profit attributable to the consolidated entity was 4.5 million yuan.

Expenditure on safety rectification, mine technological upgrading, and resource acquisition amounted to 11.1 billion yuan.

The profits weren't excessive.

Many of the acquired mines have not yet fully resumed production, and the previous investments in equipment upgrades and environmental protection are continuing to drain cash.

Ke Xingxin has already completed the most difficult step.

It is no longer just a local enterprise that owns a few mines, but a resource platform that controls the pricing power of upstream fluorine-containing materials and some new energy minerals in western province.

"What about Huadong Mining?" Chen Mo asked.

Liu Xin grinned.

"Shen Zhennan is much more obedient now."

"After they withdrew from the western province, we had two more talks in other provinces."

"Huadong Mining has a heavy debt burden, which limits its continued expansion in China, but it has more experience than Xingxin in overseas mining mergers and acquisitions, shipping, and engineering management."

"Xingxin has downstream orders and financial credit, and they have an overseas team."

"Both sides have established a joint working group to first screen fluorite resources in Central Asia, lithium resources in South America, and non-ferrous metal projects in Africa."

"We've reviewed seven projects so far, two of which have entered the initial due diligence phase, but we haven't invested any money yet."

At this point, Liu Xin sighed.

"They were fighting tooth and nail in the western province before, and now they're starting to cooperate to go overseas."

"Things in business are really unpredictable."

"That's more like it," Chen Mo said. "Xingxin doesn't need to treat East China Mining as an enemy forever."

"Domestic upstream resources are limited; the real growth potential lies overseas. My overseas team will also assist in Xingxin's risk assessment."

"Understood, thank you, Mr. Chen."

Liu Xin put away the map.

Lin Wan looked at her cousin: "Feiyu Real Estate."

Liu Fei prepared a complete project list in advance.

Compared to Liu Xin, his report was more organized.

"As of the end of last year, Feiyu Real Estate had 3267 engineering staff and held nine plots of land."

"Four Feiyu Plazas are already open for business, while the other three are under construction."

"The first phase of Jiangcheng New Energy Industrial Park has been completed, with 620,000 square meters of factory buildings, warehouses, and living facilities delivered."

"The roads, pipelines, and eight standard factory buildings for the second phase are under construction."

"Currently, eleven companies have entered the park or signed formal investment agreements, with a total contracted investment of 68 billion yuan."

"Deer Technology and its supporting enterprises account for the majority of this."

He flipped to the residential projects.

"The total contracted sales of the three residential projects in Changhu and Jiangcheng reached 37.6 billion yuan for the year."

According to the delivery and accounting recognition standards, Feiyu's operating revenue in 2015 was 18.4 billion yuan, and its net profit was 2.21 million yuan.

"Pre-sale payments that have not yet been delivered are not included in revenue and profit."

At this point, Liu Fei added:

"Last year, the scale of land acquisition and industrial park financing was relatively large. Feiyu looks like it has money on paper, but most of the cash is already tied up in specific projects."

"2016 is not a suitable year to continue the unrestrained land hoarding in Changhu."

Liu Xin, sitting next to him, laughed and said, "You used to borrow money at exorbitant interest rates to acquire land, but now that you have money, you're afraid to?"

"The situation is different now."

Liu Fei glanced at his cousin speechlessly.

"At present, Feiyu has nine plots of land, seven plazas, and industrial parks and residential projects under construction at the same time."

"If they keep taking money recklessly, even the surviving companies will be dragged down by cash flow problems."

A low chuckle rippled through the conference room.

Chen Mo nodded as well.

"Feiyu's focus this year is on completing existing projects."

"We can continue to screen for plots in the core area of ​​Changhu, but we will not chase prices for ordinary plots."

"Industrial parks and Xingxin and Deer are given priority."

"it is good."

Next up is Deer Technology.

Liu Ming and Zhang Hai stood up together.

Liu Ming was in charge of operational data, and Zhang Hai was in charge of technological progress.

"Deer Technology's operating revenue in 2015 was 11.7 billion yuan, and its net profit was 1.38 million yuan."

"Research and development investment was 1.06 million yuan, accounting for nearly 10% of operating revenue."

"The fixed assets, equipment, and pilot production line investments at the Jiangcheng New Base have not all been included in current expenses, and there will still be ongoing depreciation pressure."

Liu Ming displayed several sets of product data on the screen.

"Battery-grade anhydrous hydrogen fluoride has achieved continuous and stable production."

"The pilot production line for lithium hexafluorophosphate has completed the first phase of expansion, and the output and consistency have met the customer's sample standards."

"The PVDF binder has completed the verification of three formulations, one of which has entered the 100-kilogram level test for power battery customers."

"Chujiang New Materials has completed the trial run of its first fluorine-containing intermediate production line, and the next step is to integrate it into Deer Supply Chain for verification."

Zhang Hai took over the conversation.

"What's really important is impurity control."

He was clearly more excited than Liu Ming.

"During our visit to Japan and South Korea, we came into contact with continuous distillation, high-purity crystallization, metal ion control, and wet electronic chemical packaging systems."

"Complete equipment and processes are of course unavailable for purchase, but we identified twelve problems in the original routes, brought in three overseas engineers, and bought back two sets of testing equipment that can be legally exported."

"The electronic-grade hydrofluoric acid sample has now been purified in the laboratory."

"There are still three hurdles to overcome before we can achieve stable mass production: equipment and materials, packaging, and customer verification."

"It will be at least the second half of this year before we can determine whether the route is truly viable."

Zhang Hai did not describe the laboratory samples as an industrial breakthrough.

There is a wide gap between producing a sample and achieving long-term stable production in a factory.

"What about the financing plan?" Chen Mo asked.

Liu Ming turned to the last page.

"Der is preparing to launch its first round of external strategic financing."

"Our initial recommendation is a pre-investment valuation of no less than 5 billion yuan."

"External strategic investors have invested a total of 1 billion yuan, and Xingchen Technology has simultaneously increased its investment by 500 million yuan."

"According to this plan, after the financing is completed, Xingchen's shareholding can still remain above 52%."

"Both Duofuduo and Tianci Materials have expressed their intention to subscribe."

"The combined intended amount from the two companies has already exceeded the external quota, and three other power battery companies also hope to participate."

"What do they want?"

"Priority supply, joint research and development, and access to product information within a certain scope."

"What about board seats?"

"I want them both."

Liu Ming gave a wry smile.

"But Germany can only add one seat at most."

Chen Mo did not decide on the spot who to give the shares to.

"First, let Duofuduo, Tianci, and several other companies submit their respective industry collaboration plans."

"Price is just the threshold."

"Whoever can help Deer shorten customer certification and fill the gaps in technology and sales will receive shares."

"Starry Sky will also invest in the company; we cannot lose control."

"clear."

After De'er finished her report, Lin Wan had her staff replace the terminal with a dedicated, completely offline one.