Chapter 176 Equity Distribution
The hospital is filled with the smell of disinfectant, and the white and blue furnishings are soothing.

After sending off the nurse who hinted that he should be discharged as soon as possible and not take up medical resources, Xie Jingxing moved a low stool and sat back beside the bed, staring at Song Anli lying on the bed with an expressionless face.

"Li Li took some people to the Industrial and Commercial Bureau to cause trouble, and wanted to forcibly dissolve Xiaoma Pentium as a major shareholder." She felt uncomfortable being stared at and made small talk.

Xie Jingxing still didn't say anything. Yesterday he went to the northwest to participate in a poverty alleviation project. When he learned that Song Anli, who seemed to be in good health, suddenly vomited and went to the hospital for examination, he immediately changed his schedule and turned down the drinking party with the local leadership group.

On the way back to Beijing, he calculated the pregnancy period, hired a new assistant, and considered revising his will. As a result, he received news from the hospital after getting off the plane that this was an accident caused by fried chicken and beer.

"Is Professor Do really handsome?" He was puzzled.

Song Anli blushed: "I just want to have a midnight snack and research some popular film and television products."

"From now on, your medical examination cycle will be synchronized with mine. Buy medical insurance and communicate with your private doctor at any time if you have any problems. The company will reimburse you." Xie Jingxing instructed.

Recently, the Korean drama "My Love from the Star" has become a global hit, bringing about a trend of eating fried chicken with beer.

Song Anli, who had been hospitalized for chronic gastritis in Harbin due to drinking, stayed up late to work overtime and followed the trend of eating midnight snacks, so she was hospitalized again.

He thought for a moment and got back to the point: "Let's talk to Sister Li Li later."

"My idea is to appease them. They still hold a total of 28% of the shares."

Song Anli sat up straight. "We have 60% of the capital shareholders, including United Jinyan and Jianyin Culture. The small shareholders who hold the remaining 10% of the shares may defect. If we push them too hard, it will be troublesome."

"How do you want to comfort me?" Xie Jingxing did not comment.

Song Anli was well prepared: "Sign a performance repurchase agreement + a performance incentive private placement agreement with them."

The shareholders of Xiaoma Pentium are divided into three categories. The capital shareholders headed by the second largest shareholder, China Construction Bank Culture, hold 48% of the shares; independent small shareholders with resource-related interests hold 12% of the shares.

'Xiao Ma Huan Teng' holds 28% of the shares and Li Li sisters and Li Ming personally hold 12% of the shares.

In the Xiaoma Huanteng structure, several members of the Li family each hold shares. In other words, Jin Yan holds 8% of Xiaoma Pentium shares from the Xiaoma Huanteng structure, and her daughter inherits Li Ming's personal 3% shares, which she holds on his behalf.

Overall, the total equity shareholding is the same at 28%, but the voting rights of individual holdings and VIE holdings are different.

The shareholders made money and left at a valuation of 42 billion, and the 48% equity repurchased at the company level entered a shelving period. Subsequently, the convertible bonds of Xiyou were paid for at a valuation of 25 billion, and new shares had to be issued to increase the stake to 60%.

This means that the value of the 52% shares held by small resource-based shareholders and the Li family has been diluted by half.

Yesterday, Jinyan cooperated with the capital shareholders and forced the resource-based small shareholders to agree to let Xiyou in under certain conditions.

Those small resource-based shareholders who held 1% of the shares wanted to cash out and leave, and Xiyou took over at a valuation of 42 billion. From the Spring Festival to now, Song Anli has received 7.5% of the shares.

You can sign a contract to transfer equity at any time.

Jin Yan's conditions were to serve as chairman, kick out Li Li and her sister, and add performance incentives to the targeted share issuance agreement.

She has served as chairman for three years. If Xiaoma Pentium's performance grows by an average of 50% each year, the company will need to give her a total of 15% of the shares in batches after three years.

Even though Jin Yan is a candidate who runs a vegetarian restaurant and spends every day thinking about selecting fresh mushrooms, she knows that this performance incentive agreement is just a carrot hanging in front of a donkey's head.

Not to mention how difficult it is to achieve a 50% annual performance growth, just the fact that Xiyou will hold 60% of the shares means that the final right of interpretation of the performance report will belong to her good sister Song Anli.

But she had no choice after she was dismissed from her position due to the falling out. Grapefruit had nine ways to cooperate with the Li Li sisters to kick her out completely, a total of nine ways!

Jin Yan knew that her good sister was preparing the poison under the pretext of respecting Mr. Li Ming's last wishes, but she could only swallow it with a smile.

It is better to die later than now. If you struggle hard during this period, you may still have a chance to turn things around.

Hope is the most luxurious thing in the world, and now Song Anli wants to sell it to the Li Li sisters.

Either you fight to the death now and get kicked out completely after Xiyou enters the game; or you sign a performance-based targeted share issuance agreement and try your luck.

You three siblings have been through many ups and downs in your business for many years. You would never want Jin Yan, a housewife who runs a restaurant, to control the company, right?

She will use her status to stabilize the morale of the company, but in the end, Xiaoma Pentium will have to rely on someone named Li to take charge.

Of course, Grapefruit Capital is an investment institution after all. If we only talk about feelings, not to mention that you may not believe it, I don’t believe it myself either.

Therefore, we have to sign a performance repurchase agreement. If the average performance growth within three years is lower than 30%, Grapefruit Capital will repurchase your shares at an agreed price.

——This is the negotiation script that Song Anli prepared for the Li Li sisters. For this purpose, she specially invited Su He to play Li Li and rehearsed the interview process more than a dozen times.

"It's much better than I expected." Xie Jingxing tacitly agreed to the plan.

他起初计划20—25亿全资收购小马奔腾，截止现在是15亿转价股拿到60%股份，42亿估值收回12%股权要5个亿左右。

The company acquired 20% of the shares for 72 billion yuan, which exceeded expectations.

The 28% held by several members of the Li family will be taken back later to establish employee stock options, cross-hold shares with partners, and also give out some as favor shares like Li Ming did.

This part is counted as operating cost, and the film and television industry is far from being as pure as Internet companies.

In this industry, the genius investor Xie Jingxing cannot make a living, only the super rich second-generation Xie Jingxing can do it. It can be said that one has to sing the song that suits the situation.

Song Anli couldn't help but smile: "Boss Su, Boss Tang gave me a lot of help, as well as Concubine Pei."

"How did Concubine Pei help you?" Xie Jingxing asked with interest.

Song Anli smoothed her hair and said, "She introduced me to a lot of rules in the film and television industry. There are many taboos in this industry. It's not as direct as our normal transactions, and it's easy to offend people."

"She has done her best to become the boss lady of Xiaoma Pentium. I will go back and transfer the 7.5% of shares you have taken back to her. I will hold them on her behalf for the time being."

Xie Jingxing was in a good mood and asked, "What reward do you want?"

"I want to open a private restaurant." Song Anli said without hesitation.

Xie Jingxing raised his eyebrows: "Is it that simple?"

"I have everything else I need."

Song Anli looked calm. She had to find ways to fight for and grab those things that she didn't deserve.

Xie Jing Xing was silent for a few seconds, then suddenly laughed: "I'll give you something else. You will hold Concubine Pei's shares on her behalf. You will join the board of directors of Xiaoma Pentium and transfer to serve as my special assistant."

"...Can I consider it?" Song Anli asked carefully.

Transferring to the position of special assistant and joining the board of directors of Xiaoma Pentium means that she no longer has to follow Xie Jingxing 24 hours a day and can handle projects independently.

Correspondingly, I lost some of the learning opportunities of getting close to him. "You will still be in charge of this project, considering the end of the previous transaction?" Xie Jingxing's smile became more and more obvious.

Song Anli nodded vigorously: "Okay!"

"Have a good rest. I'm going to see Zhong Lifang." Xie Jingxing kissed her.

Song Anli put her arm around his neck and said, "I want to discuss the performance repurchase agreement with Li Li and her sister. I want to add an extra clause. They can each retain 3% of the shares."

Xie Jing Xing was stunned for a moment, staring into a pair of shining eyes, and said seriously: "This project is yours."

"This project is yours!" Song Anli said firmly.

That night at the Beijing Club, Li Ming, full of gangster spirit, revealed all the inside stories of Xiaoma Pentium.

As a deal, he asked to retain his daughter's 3% stake if possible, give Jin Yan some money, and give the Li Li sister a chance to exit with dignity.

Xie Jingxing said that the request was a bit long and he might not remember it all, so Li Ming said nothing and just toasted one glass after another.

Therefore, Song Anli did not prepare a performance equity repurchase plan for Jin Yan. She wanted to help Xie Jingxing remember as much as possible.

If nothing else, the auspicious fortune stick drawn from the top of Beigao Peak said that a family that accumulates good deeds will surely have good fortune.

This wasn't her accumulated goodness, it was Xie Jingxing's!

…………

"I'm an investor, not a will-to-be charity. Li Ming thinks I can take over Pony Gallop, and I think you can take good care of Pony Gallop."

In the tea room, smoke curls up from the incense burner and the sound of tea being poured is soothing.

Xie Jingxing and Zhong Lifang sat opposite each other across a large Huanghuali tea table, with Concubine Pei sitting in the middle, gracefully demonstrating her tea-making skills.

He looked at her and asked, "I heard that you were the one who led the previous acquisition of Digital Kingdom?"

"Pony Ma is a grassroots enterprise at heart. None of my brothers and sisters in the company understand financial acquisitions. After much deliberation, they had no choice but to let me, who can speak English, take the lead."

Perhaps because she is middle-aged, Zhong Lifang's cheeks are slightly fatter, and she looks inexplicably kind and maternal, with a gentleness in her words and deeds.

But in fact, she worked at Phoenix.com in Hong Kong in her early years, then went abroad to study marketing, and returned to China to join Xiaoma Pentium as vice chairman. She has always strongly controlled capital operations such as investment and production, and external financing.

She was one of the first producers in China to strictly control the signing of priority guarantee agreements for investment in film and television works. Other investors suffered losses in many projects, but Xiaoma Pentium made a profit and exited.

At the same time, she is also one of the earliest experts in new-style marketing in China. In this era when marketing expenses in the film and television media industry account for 30% of the total production costs, she dares to split the marketing expenses and film and television production costs in half.

Active marketing through the Internet is quite meaningful in promoting movies in the mature period of short videos ten years later.

Her resume and background prove that this person is capable and has sharp qualities.

"Only the results matter. The acquisition you led was successful."

Xie Jingxing paused for a moment and said, "In the future, Pony.com will have many similar projects. I can't think of anyone in the company who can do it well except you."

"Thank you, Mr. President, for your compliment. I feel embarrassed by what you said." Zhong Lifang said as she turned her head and took the tea handed to her by Concubine Pei and expressed her gratitude.

Xie Jingxing didn't take it seriously and let her take the opportunity to change the subject and chat over tea.

Gradually, Concubine Pei's IQ increased and she realized the subtle atmosphere. She picked up the teacup and said, "Sister Fang, I'll offer you a cup of tea instead of wine. You have to treat me to a meal later."

"I can treat you to a meal, but you have to explain the reason clearly. Why do you want me to treat you?" Zhong Lifang felt that she had been reserved enough, so she asked with a smile.

Concubine Pei looked at Xie Jingxing: "Jingxing wants to give you shares, 10%. This matter should be announced after the situation stabilizes for a while. If I reveal the secret in advance, do you want to treat me to a meal?"

"Then I must treat you to this meal." Zhong Lifang agreed immediately.

Xie Jingxing promised to kick the Li family out and support her as the chairman plus 10% of the shares. Considering the benefits alone, this price is acceptable.

Considering the development of the company, the fact that Concubine Pei can sit here proves that there is no need to worry about funding issues for at least two years. As far as she knows, Xiyou is raising a 20 billion yuan fund which will be in place soon.

In terms of personal connections in the film and television industry, Xiyou may be slightly inferior, but it is definitely better than Xiaoma Pentium's current situation.

The overall future prospects are better than if she started her own business alone or found a job at a leading company in the industry.

"Ming Ge left suddenly. Deputy General Manager Li Li seized the personnel and financial power and refused to honor the options and dividends that Ming Ge promised to the senior executives."

Zhong Lifang quickly adjusted her attitude and followed Mr. Xie's lead: "There is no need to argue about right and wrong, but recently several senior executives are leaving and need to be resolved. Mr. Xie can make the decision to reassure the brothers and sisters. I must offer Mr. Xie a glass of wine."

"The option pool is tentatively set at 12%. Everyone will get a share of the profits, and Xiyou will increase the shares later." Xie Jingxing replied indifferently.

Options must be given according to the number of years, and 12% is enough to redeem the first batch.

Besides, he only wants to retain scarce talents such as screenwriters, directors, and producers. Senior management talents in mid- and back-end administrative positions should be sent to society after graduation.

Recruiting new people is not only cheap but also makes them obedient, thus maximizing profits.

He felt sorry for Song Anli and didn't want to put too much pressure on her, and also wanted to give Concubine Pei some good reputation. Zhong Lifang's touching speech couldn't get him to make a penny more.

However, given the value she has demonstrated so far, if her personal performance meets the standards, it will not be a problem for her to hold a maximum of 20% of the shares in the future.

"Mr. Xie just mentioned that Pony.com will have investment and M&A business in the future. What exactly is that business?"

Between personal and collective interests, Zhong Lifang feels that she should take care of herself first. The brothers and sisters in the company just need to wait for the right time, and there will be bread!
There is no way. The holder of 20% of the shares and the holder of 10% of the shares sit in different positions.

Xie Jingxing nodded slightly with satisfaction: "As far as I know, the company's main business currently includes advertising agency, film and television production, and theater distribution?"

"Advertising agencies account for more than 30% of the company's performance revenue, and the proportion has been decreasing year by year in recent years. It is expected that they will be excluded from the main business scope in the future."

Zhong Lifang said tactfully: "Film and television production business accounts for about 50% of the company's revenue. It is the company's core revenue business and has higher risks. Theatrical distribution is in the development stage, accounting for less than 20% of revenue, and has certain growth prospects."

"I am optimistic about theatrical distribution. This business tends to be asset-intensive, and we can appropriately use capital operations to improve operational efficiency." Xie Jingxing gave the answer.

The advertising agency business was obtained by Li Ming through his political and business connections, and it will naturally collapse in the future.

The investment risk of film and television production is high, and the investment cost increases year by year. If you don’t have a lot of money, you can’t afford it.

But with such a financial foundation, why should they rely solely on the film and television production business? Huayi and Tangren are the artists' agents, and Guangguang Media is trying hard to enter the theaters for distribution.

Several leading companies in the industry are instinctively adjusting their strategic directions. It makes sense that Pony.com, whose revenue from theatrical distribution accounts for less than 20%, is worth only 25 billion.

(End of this chapter)