Chapter 308 Triangle Merger
The 70-year-old man is still in his prime, and the young man has great ambitions.

What Yu Nian said was extremely abnormal. Wang Ningguo couldn't stand it. It was true that he wanted to be a leader, but he had no intention of starting a business from scratch with venture capital.

The ideal scenario is that Xie Jingxing spends a fortune to acquire a leading chip company and invites him to take over as the head of the company. At the very least, it has to be a startup company that has its own technology and business foundation and has a clear development prospect right from the start.

Wang Ningguo said goodbye and left in disappointment, but being able to catch the official route of Luzhou was also a gain. He remained calm on the surface, secretly changed his return ticket to Taiwan, and decided to go for an investigation.

After all, he has been working in the mainland for more than ten years and is familiar with the local investment practices. Xie Jingxing may not be able to make the final decision alone, but relying on his reputation as the king of Chinese semiconductor materials, he may be able to get support directly from Luzhou.

"He may be old but his heart is not. Let's leave him alone for a while."

Xie Jingxing was clear about this. Since Dr. Wang asked for such a high price, he could just go with the flow and ask for prices from various sources in the market to find out his true value.

Yu Nian was not optimistic: "Over the past decade or so, foreign investors have always been the investment style of local cities in China, and his reputation and resume are both top-notch. If he negotiates a price with Luzhou without you, how will you end up?"

"The Xiyou team is currently negotiating in Luzhou. I will keep an eye on him."

“What’s your bottom line?”

"Not yet. It depends on how many chips we can get next."

Xie Jingxing sent a message to Tang Man who was far away in Luzhou. He stared at Dr. Wang, checked the time and put down his phone: "Let's go to Zhaoxin Technology."

"Zhu Yiming and I agreed to meet in the evening." Yu Nian raised his eyebrows to remind him.

Xie Jingxing pressed his stiff neck and commented: "Hide it, tuck it in, the initiative will be exchanged the moment the need is exposed."

Never reveal your needs to investors easily - Yu Nian remembered what his mentor said when he first entered the industry.

Wang Ningguo exposed his needs, so he traveled thousands of miles without realizing it to pursue a result that was doomed to fail.

So what about Zhu Yiming?

In the afternoon, in the headquarters office of Zhaoxin Technology, employees passed by the front desk from time to time, looking at the famous investor who had suddenly appeared with curious eyes.

Luzhou's 100 billion semiconductor fund, the company is going to conduct a new round of financing, come to conduct due diligence?

Rumors spread in the company's internal gossip group. The girl at the front desk took a secret photo and wanted to post it on Weibo. The latest confidentiality regulations prevented this dangerous idea in time.

"Mr. Zhu, I'm sorry, I have something urgent to do tonight and I came to bother you in advance." Xie Jingxing put on the visiting card and explained.

Zhu Yiming, who interrupted a meeting to come to the reception, was indifferent: "It's understandable. Time is money in investment banking. Please come this way."

"I heard that Mr. Zhu has been very interested in investment banking business recently?" Yu Nian took the opportunity to bring up the topic.

"The development of chip companies cannot ignore the support of capital operations. We are recruiting a chief financial officer."

Zhu Yiming didn't take them on a tour, but went straight to his office and poured two cups of tea: "Mr. Xie and Mr. Yu, if you have a suitable candidate, please recommend it to us."

"Zhaoxin is going to go public?" Xie Jingxing asked bluntly after sitting down.

Zhu Yiming's expression was slightly stagnant. "It's the same as what I learned recently. Most companies like to hire financial officers who are good at listing business for a short period of time during the listing stage. The employment contract will end after the listing is successful. I heard that you call this a mercenary?"

"Everyone takes what they need. CFOs who are good at IPOs usually charge a lot of money, but they are not proficient in the specific business operations of the company itself."

Xie Jingxing nodded. Mercenary financial officers for listed companies often need to have corresponding personal connections and are likely to be sent to Tilanqiao to sing tears behind bars. It is high risk and high return, so companies will naturally not hire them under normal circumstances.

"Zhaoxin is at the top of the flash memory chip field. We have no rivals in China. We will have to find new growth points in the future."

Zhu Yiming smiled and said, "It is an old tradition in the chip industry to acquire technology through acquisitions, investment and cooperation, accelerate development and eliminate risks."

"This is the overall strategic direction of Zhaoxin, and a financial officer who is good at capital operation is very important."

He indirectly denied the question of listing and at the same time put forward the demand, which was M&A investment business, rather than Zhaoxin itself accepting investment.

Every well-known chip entrepreneur in China has a legendary past experience. Zhu Yiming simply brushed it off with a sentence "We have no rivals in China", demonstrating his ambition for the future.

It was memory chips again. Dr. Wang's eyes that were obsessed with power flashed through his mind. Yu Nian couldn't help but pick up the conversation: "So you want to hire Grapefruit Capital to provide M&A services?"

"During my time in the investment industry, Mr. Xie's professional capabilities in the field of mergers and acquisitions have been unanimously recognized and recommended. Many friends have emphasized to me the impressiveness of the WhatsApp acquisition." Zhu Yiming did not comment.

The demand exceeded expectations. Yu Nian asked thoughtfully: "Do you want to do overseas mergers and acquisitions?"

"It's too early to say. We need to determine the company's next major strategic direction, which may not necessarily be mergers and acquisitions." Zhu Yiming continued to explain the situation.

In short, this is a very standard investment banking advisory services case.

Grapefruit Capital entered the market to conduct a due diligence on Zhaoxin’s operating conditions, and worked with the company to formulate a perfect future strategic development direction. Based on this, it sought corresponding companies in the market and either acquired them or invested in them for cooperation.

Yesterday, at the wine party, Liu Yue's attitude from Qingxin Huachuang and the reminder from Chen Zhibin from Huachuang Xinyuan made Zhu Yiming inclined to choose. When it comes to the professional level of M&A services, Xie Jingxing seems to be really the best in the country.

Moreover, looking at the long-term strategy in the future, Zhaoxin will always need investment. It will be a natural thing to start cooperation with mergers and acquisitions and then introduce investment from Luzhou-Grapefruit Industry Fund.

Yu Nian quietly started brainstorming. Wang Ningguo wanted to make memory chips. Beijing Silicon Group, Yizhuang Guotou and Huachuang Xinyuan were going to acquire an overseas project, ISSI, which was also a memory chip. Now Zhaoxin also wanted to acquire a memory chip project. A triangular merger and acquisition deal took shape in an instant. Her heart was pounding and her chest was heaving. She glanced at Xie Jingxing and winked.

"Zhaoxin is going public."

Xie Jing Xing, however, remained calm and stirred his sensitive nerves again, this time with an affirmative tone.

Zhu Yiming couldn't help but frowned: "As far as I know, Mr. Xie's organization doesn't do listing business?"

"That's right, but I personally have a superficial understanding of the IPO issuance business. Determine the listing plan, introduce a coaching agency, restructure the shares, sort out the finances... report to the regulatory agency, and wait for the schedule... Starting from now, if everything goes well, Zhaoxin will issue an IPO in about a year."

Xie Jingxing slowed down his speech: "One year later, in 2016. Mr. Zhu, based on your understanding of the chip industry, what changes will occur in the memory chip market in 2016?"

"This question is very broad," Zhu Yiming responded perfunctorily.

Xie Jingxing stopped there and got back to the point: "If it doesn't go public, how can Zhaoxin pay for large acquisitions?"

Zhu Yiming restrained his posture and looked serious. Zhaoxin had indeed launched its listing plan, and even this year's financial profit was the last year of three consecutive years of profitability as set out in the listing criteria.

Therefore, the IPO issuance will be later than the time point inferred by Xie Jingxing, at least next autumn, and the so-called mergers and acquisitions to develop new businesses will be after that. There will be no money for transactions without listing.

So the question is, in the chip industry where the survival cycle of companies is measured in months, what will the market dynamics be like after a year and a half?
Whether there is still an opportunity to develop new business, or whether Zhaoxin can be successfully listed.

In silence, Xie Jingxing understood tacitly.

Issuing an IPO is a major operational matter that affects long-term interests and short-term survival for any company. For example, a second-generation intern who liked to show off his wealth at a securities firm suffered from his lack of education and accidentally leaked customer information of three listing guidance projects at once.

The client’s competitors immediately laughed and casually reported the client’s financial problems to the regulatory authorities, forcing them to re-examine the matter even though they knew there were no problems.

It is not a big deal to waste several months of review time. The key is that in actual operation, as long as you check, there is no perfect financial account book without problems.

From a certain perspective, the silent period during listing is a protection for the enterprise. Zhaoxin has just repeatedly emphasized the confidentiality system internally. Before the formal cooperation plan was signed, Zhu Yiming's tacit approval of the listing plan was decisive enough.

Of course, if Xie Jingxing wanted to cause trouble, speculation would be enough without any need for confirmation.

"We, Xiyou...uh, the chip industry guidance fund jointly established by Xiyou and Luzhou is willing to invest in Zhaoxin to start new business as soon as possible." He expressed his intention.

Zhu Yiming shook his head: "This is unrealistic."

"Our industry guidance fund requires that the invested projects be located in Luzhou, so we can invest by registering a new company. We provide the money and technology."

Xie Jingxing added without hesitation: "We will be responsible for all the strategic mergers and acquisitions required for the new company and new business."

This math problem is very simple. After Zhaoxin goes public next year, it will acquire and launch new businesses, and the company's market value will increase twice in a row, but it will have to bear the risks of market dynamics from now until the listing period.

If Xinhai Fund investment is introduced immediately, the time period risk sharing will be compressed to the minimum, and the company will obtain a round of valuation growth before listing.

However, the valuation growth in the primary market is unlikely to be as good as that in the secondary market, and a large portion of the premium from the valuation to the IPO issuance range will be divided up by Xie Jingxing. Compared with the early shareholders, this benefit is almost given away for free.

Even if Zhu Yiming agrees, all other shareholders whose profits will be diluted will object.

Registering a new company is completely different. Xie Jingxing contributes money and effort, and Zhaoxin only needs to invest technology to gain new business and pre-IPO valuation growth.

It is also like giving money away for free to buy an opportunity for a chip company that may be successful in the future.

"To be honest, I'm not sure what new business segment we are going to start." Zhu Yiming said in a deep voice after taking a deep breath.

Xie Jingxing spread his hands: "Of course it is other categories in the field of memory chips. Zhaoxin has the technical foundation, and I believe you can do it well."

"Mr. Xie, I'm sorry. What we've been talking about has gone a little off topic. I originally wanted to talk to you about M&A service cooperation." Zhu Yiming backed down and dodged.

Xie Jingxing eased up a little: "I understand that decisions related to long-term strategies need to be made carefully. So, I will stay in Beijing for a few days recently. Within a week... we will keep in touch at any time."

As he was speaking, he suddenly received a hint from Yu Nian's eyes, and he changed his tone and did not set a final deadline for the investment intention, but just wanted to communicate more.

Having said this, the two said goodbye and left to meet senior Zhang Wenyi.

…………

Zhu Yiming stood in front of the office window, watching Xie Jingxing and Yu Nian slowly drive away in a car downstairs. Until they completely disappeared from his sight, he withdrew his gaze with a lingering feeling.

I walked back to my desk and my phone screen lit up at the right moment.

【How is it? 】Chen Zhibin sent a message.

Zhu Yiming played with his phone for a while: [Let’s meet and chat. ]

[How about tonight? I'll buy you a drink, young commander! ]

(End of this chapter)