Rebirth 2010: I'll be a big shot

Chapter 205: Obtained 2 rounds of financing, with expected revenue of US$10 billion

Author: The bright moon once shone on the ancient river

Chapter 205: Obtained 2 rounds of financing, with expected revenue of US$10 billion

"Yugang Electronics was founded in 1986 and is headquartered in Pudong New District, Shanghai. It is mainly engaged in semiconductor wafer foundry, chip packaging and testing, system packaging and other businesses, and can provide complete chip manufacturing services."

"We have multiple production bases and R&D centers in Shanghai, Jinling and other places, with more than 10,000 employees..."

Chen Heyu leaned against the sofa, with a mahogany tea tray placed on the table in front of him.

While Lao Zhou was reporting, he skillfully washed the tea, added boiling water, poured out the first brew, and then filled the cup with tea.

"My tea-making leg skills have improved."

Chen Heyu picked up the purple sand cup, took a small sip, let the light fragrance swirl on the tip of his tongue, and commented with satisfaction.

Zhou Xiaoyu smiled slightly and continued: "In 2008, Zigang Electronics successfully listed on the main board of the Hong Kong Island Stock Exchange and enjoyed a period of prosperity.

In recent years, due to improper business strategies and increasing debt pressure, the market share has gradually shrunk, the debt scale has increased year by year, and the financial situation has become increasingly severe, and it has been on the verge of bankruptcy."

"Is there any other reason? In his opinion, in the past thirty years, the market demand for low-end chips in the fields of industrial machinery and major appliances has always been greater than supply. Zigang Electronics won't be in such a miserable situation, right?"

Chen Heyu glanced at Lao Zhou and knew that he had not finished speaking.

really!

"I just know that Shi Yang, the boss of Zigang Electronics, returned from studying abroad in Neon Country two years ago. He wanted to upgrade and conquer the original process, so he built a large-scale wafer foundry in Jinling.

But the packaging technology is not up to standard. The size of the silicon wafer can be 12 inches (300mm). The packaging technology cannot keep up, and the 4 billion Chinese dollars invested in the early stage have all been wasted."

Zhou Xiaoyu smiled and then explained.

"Oh? There are very stupid people?"

Chen Heyu smiled softly, a little incredible.

No wonder Boss Jingda would rather his son sit idle all day long, picking up girls, buying cars and playing games, rather than messing around, starting a business, or even mentioning succession.

For a second-generation rich man, abandoning his career will harm others, but he will be able to live without worries about food and clothing.

"I was tricked by the equipment manufacturer in Neon Country. The wrong party originally promised that the wafer factory would be put into production so that Shi Yang could obtain advanced 3DIC packaging technology. Unfortunately, Xiaoyuezi changed his mind at the last minute..."

Lao Zhou spread his legs and said, with a hint of sullenness on his face.

Business wars are dangerous, so it’s a big taboo to trust others easily!

"How many days will it take for the financial audit report to be released?"

Chen Heyu nodded and asked.

Generally speaking, the larger the wafer size, the higher the utilization rate, the lower the production cost of the chip, and the efficiency will be greatly improved. However, the cost caused by the process is very high, and the required packaging technology is more precise and complex.

Compatible with different wafer sizes.

Zigang Electronics wanted to surpass Huaxin International and become the leader in the chip manufacturing industry, but it ended dismally.

So sad!

"Nothing unexpected happens. I'm asking for three days. I'm wrong. Mr. Zhang will come to Shanghai tomorrow."

Lao Zhou replied.

"Technical capabilities and intellectual property rights are the most important aspects for him. I told him to go to Dongfang and ask for a focused review on that aspect."

Chen Heyu warned.

As for packaging technology, there is always a way to solve it. It is really not feasible to buy equipment from Korea at high prices. Although it belongs to the second tier, it can solve the current problem.

"No, he knows."

Lao Zhou promised to come east.

Is chip manufacturing an asset-heavy industry? Spend money like water. If the boss wants to forge ahead, it's natural that he can't stop or persuade him. He can cooperate tacitly and clear the obstacles in the way.

"Let's have lunch together. It feels like we haven't seen each other for a while."

Chen Heyu knows the way well.

Lao Zhou was not his pocketbook, and he had worked hard over the past few years to help the company make money, putting aside official matters. The two of them were considered old friends, so it was natural for them to take the opportunity to deepen their relationship.

"Please call me Liao Feng?"

Zhou Xiaoyu asked with a smile.

"No problem. Let's take a look at Meng Guadao Xuan. Is he mature?"

Chen Heyu joked.

Then, the two walked out of the office together, walking in a silver Alfa with Liao Feng, the new senior venture capital director of Shanhai Capital.

Driving out of the software park and heading straight to the city center.

“Lighter, Cantonese food or local food is fine.”

Chen Heyu opened the car refrigerator, opened a bottle of mineral water, moistened his throat and said.

“How about Shu Xingyuan? It specializes in non-spicy Sichuan cuisine.”

Lao Zhou thought for a while and replied.

Of course he is familiar with the taste of his own boss, he loves spicy dishes, but he is also willing to try fresh and spicy dishes occasionally.

"Sichuan cuisine is also fine, Mr. Liao, was I the one who led the two rounds of financing agreements for Feitou?"

Chen Heyu nodded slightly, turned around and asked Liao Feng.

"Boss, why don't you call him Xiao Liao? In front of you and President Zhou, how can he dare to call him President?"

Shanhai Capital was not the lead investor in Feijiao Short Video’s first and second rounds of financing.”

Liao Feng said with a grin, his temperament was much smoother than Qiu Qiu a few years ago.

Douyin from the south, flying kick from the north!

In 2015, when Douyin was barely born, Shanhai Capital successfully entered the short video track.

"Tell me the specific situation."

Chen Heyu asked.

"In June last year, the founder of Feitou approached Zaimen for financing cooperation. He gave the wrong party 8 million Chinese dollars and took 25% of Dong's equity."

Liao Feng replied.

The investment of 8 million yuan was just a small project in Shanhai Capital, and it did not attract Chen Heyu’s attention.

"In September 2014, Feitou launched its second round of financing. The investment was US$10 million in exchange for 20% of the equity. SUG Capital exchanged US$2.5 million for 5% of the equity."

Liao Feng has a good memory and can casually tell the core data of projects he has been responsible for.

"Be included in A-level venture capital companies and maintain the pace of following investments."

Chen Heyu has decided to come east.

Outside of Shanhai Capital, investment projects or companies are divided into four levels: S, A, B, and C. Currently, Zhang Yiming, who has Douyin, belongs to the S level.

Didi Taxi and MiHiyou are Class A.

Little Green Book, mobile travel belongs to level B.

Wu Jin Film Co., Ltd. and Yang Mi Studio belong to Class C.

Zhou Xiaoyu and Liao Feng looked at each other with shocked expressions and asked puzzledly: "Boss, the short video field seems to have average potential?"

"4G networks and Wi-Fi wireless networks are very popular. Wait a year and we will be successful."

Chen Heyu said with a smile.

With the late stage of the Internet, the traffic dividend has gradually lost its potential to be tapped. Whoever can become the traffic entrance will be able to laugh at the beginning.

Why will Ahri be unable to follow up after 2019?

Because Ali is a traffic buyer, its annual advertising expenses are as high as tens of billions, and it then distributes the traffic to merchants to earn huge price differences.

Short video content like Douyin and Feijiao are fast in production and can be released and pushed instantly. They are suitable for the fast-paced modern lifestyle and greatly enhance user retention and activity.

Slowly, it becomes a traffic portal and can easily capture 100 billion in advertising fees a year.

"No, boss, he will pay more attention to it."

Liao Feng said seriously, keeping it in his heart.

He knew that Feili's investment project had come into the boss's sight and was recognized by him, so he was inevitably a little excited.

Is that his first A-level investment project in Shanhai Capital?

Chen Heyu made a plan, and two rounds of financing came from the east. Ye Yi obtained 38.75% of the equity of Feijuan. If calculated based on the company's issuance price of 115 yuan on the market, it would be equivalent to an IPO market value of US$10 billion, an increase of 909 times.

Of course, is this an ideal situation? Before Feitou went public, Li Yi completed 11 rounds of financing, with a cumulative financing amount of US$4.8 billion.

If Shanhai Capital wants to take advantage of Dong’s huge profits, it needs to continue to follow up on Jie Donglai’s 9 rounds of financing.

In the next five years, we must continue to invest at least US$2 billion in order to maintain the existing shareholding ratio.

"Hey, at that time, Zhang Yiming was obsessed with making headlines every day and had no ambition to enter the short video track. Can you please give him a push?"

Chen Heyu thought about it.

After arriving at the restaurant, he could not make up his mind, fearing that interfering in advance would affect the future development of Douyin Group.

There are many small foreign-style buildings of different styles in the ten-mile foreign market. They are like the beauty of the past, giving them a sense of beauty that has lasted forever.

Shuxingyuan is located in an old villa that imitates the British style and is a representative of high-end Sichuan cuisine.

Zhou Xiaoyu took the two of them into an exquisite private room with ease. The floor was made of retro marble and there were colorful enamel chandeliers overhead. The style of that year was vaguely visible.

"Donghai large yellow croaker in Sichuan sauce, pork liver minced with green onions, milk soup chowder, bamboo fungus liver paste soup, and the rest we will order and he will treat you."

Chen Heyu glanced at the menu and said.

"Sauce fried pork, Hechuan pork slices, snowflake chicken..."

Liao Feng declined, so Zhou Xiaoyu made up for the dishes.

"When will the annual meeting be held?"

Chen Heyu asked.

"The preliminary plan is February 7."

Liao Feng saw that the old leader was very interested in choosing drinks, so he replied.

"Investing 500 million yuan into the bonus pool will not allow everyone to work hard for a prosperous year."

Chen Heyu said in a deep voice.

Generally speaking, the core incentive mechanism for senior management of venture capital institutions is commission, which mainly comes from exit profits.

For example, Shanhai Capital invested 8 million in Feijiao in the A round. By the time the B round was completed, the post-financing valuation had increased by 15 times.

When Shanhai Capital sells stocks, the funds obtained will be withdrawn from the income. For senior partners and investment directors like Lao Zhou and Liao Feng, excluding basic salaries, this is where the largest dividends come from.

But during those two years, Shanhai couldn't get out of the business and focused on investing in start-ups, growth companies, large-scale mergers and acquisitions projects, as well as overseas stock trading.

If we follow the normal operating rules, Lao Zhou and Liao Feng can get a basic salary, which is actually very unreasonable.

Chen Heyu just thought of spending a fortune every year to reward all employees of Shanhai Capital.

Otherwise, it will easily chill Dong's heart.

After all, in that year, Shanhai Capital invested in a large number of Internet companies, and the annual cumulative return on investment exceeded 500%. It would be too ugly to not pay a dime.

Future technologies all have annual bonuses of 2 billion, so how can he favor one over the other?

"Thank you, boss."

Zhou Xiaoyu was very happy. Whether he was in charge or not, he would be worth at least tens of millions of Chinese dollars.

Compared with the salary package in the venture capital industry, the annual salary + bonuses and benefits for an investment analyst at the bottom of Shanhai Capital is approximately between 350,000 and 600,000 Chinese dollars.

The investment manager’s investment is between 900,000 and 1.2 million Chinese dollars.

For senior investment managers, the amount should be between 1.2 million and 1.5 million Chinese dollars.

An investment director or vice president is not at Liao Feng's level, and the total income is between 1.5 million and 2.5 million Chinese dollars.

For Lao Zhou's level, the price ranges from 4 to 12 million Chinese dollars.

If it were a foreign-funded enterprise, the figure would rise by 30%-50%. Chen Heyu easily threw out 500 million, and Shanhai Capital had less than 300 employees. Excluding the management who took the big profits, ordinary employees could get 100

Wanhua coins.

After almost 2 times the normal annual salary, it is really a big deal.

However, compared with game companies, it is slightly inferior. For a more aggressive head game team, the year-end bonus can even get 200 months of generous reports!

More inhumane!

…

After the banquet was over, Lao Mo drove back to Shanhai Film and Television headquarters.

"Mr. Chen, Liu Yifei's agent contacted him and wanted to gain influence from joining Shanhai?"

Lin Shiwei called.

Liu Yifei?

Fairy sister?

According to rumors, does she have a financial backer? She actually wants to cooperate with Shan Hai?

"Don't she have her own agency? How to cooperate with them?"

Chen Heyu asked curiously.

"The wrong party wants to follow Yang Mi's cooperation model and borrow Shanhai's funds and project resources, and they will take a commission from it."

Lin Shiwei replied.

"He is returning to the company now, and I will ask her to come to Shanhai Headquarters for an interview."

Chen Heyu pondered for a few seconds and then said.

(End of chapter)