Reinventing the Millennium

How to solve the big hole in Sony?

Fang Zhuo was sitting on the plane flying to Luzhou, thinking about this matter for his old friend.

This year it seems that except for PS3, all businesses are in decline.

Oh, LCD TVs may be growing, but Japan's consumer subsidies coupled with a mandate to fully transition from analog to digital TV broadcasts are a big factor in driving growth.

Fang Zhuo thought about it, but still felt that Sony could only focus on the huge growth of smartphones.

But now it is no better than before. Yike and Apple are leading the way, and Samsung is also very competitive. There are also various manufacturers from various countries that are attacking the mid- to low-end. It is not easy for Sony to break out.

Apple is unwilling to let go of the screen, that is, the integration of Android system + Yike's photography + Sony. The first two together may still have combat effectiveness. In the end, with Sony's integration, the combat effectiveness will drop again.

"It's difficult." Fang Zhuo sighed.

Liu Zonghong raised his ears, what's going on?

"Sony is difficult." Fang Zhuo sighed again without saying anything.

Liu Zonghong lowered his ears and automatically translated in his mind, Sony is hard, good, good, good.

He waited for a few seconds and asked: "Mr. Fang, can Sony's business pick up next year? Will Stringer just drag it on like this?"

"It takes courage to burst the bubble." Fang Zhuo frowned, "It takes one year to mend the problem, and maybe the business will explode next year."

Liu Zonghong has been with his boss for a long time and knows a lot about Sony. In the past, Sony phones could not use their own camera technology, so the boss, an outsider, had to help.

Oh no, the boss is not an outsider, the boss is a director.

Even if he is not a director, Stringer is still called the head of Sony’s ZTE.

Liu Zonghong returned to silence, thinking about Sony Sensor's investment this time. If Sony continues to mess with this, it will be difficult for this subsidiary.

The Qingzi flew to Luzhou, and the directors of Bingxin were already waiting.

Goldman Sachs, Deutsche Bank, and DCM, three world-renowned institutions, sent senior or senior vice presidents this time to handle Bingxin’s unusual financing proposals.

IDG was personally attended by Xiong Xiaoge, the head of the group.

Bingxin has raised funds three times since 2003. The first two financing entities can be said to be Goldman Sachs, Deutsche Bank, DCM, IDG, and Fangzhuo. The third financing was the introduction of more private equity capital after the financial crisis, but the board of directors has changed. It has never been big. For example, Luzhou SDIC mainly represents local attitudes. General Manager Wu Hongquan has given up his board seat and replaced it with Liang Mengsong.

Ice core has always had a good board - a board that's like dead.

But this time, when Obtained Ice Core had a clear plan to go public, the dead-like board of directors also wanted to get excited.

After three rounds of financing, Bingxin has Goldman Sachs holding 12.3%, Deutsche Bank holding 11.2%, DCM holding 10.3%, IDG holding 10.2%, Luzhou State Investment holding 8.9%, private equity QT and MNG each holding 6 %, 6.3%.

And, the largest shareholders are Fangzhuo and Bingxin with 34.8%.

Judging from the equity release, Bingxin is a wafer manufacturing company that accommodates international capital and local Chinese companies.

From the perspective of customer distribution, Bingxin has customers all over the world.

In terms of revenue growth, Bingxin is already the fourth largest manufacturer in the world and is expected to be among the top three in the next few years.

From 2003 to 2010, 7 years, it is time to get returns and get them as soon as possible.

And, you can get rewards without paying any extra money!

The last point is the consensus of Goldman Sachs, Deutsche Bank and DCM.

It was about to go public, but suddenly it was necessary to raise funds suddenly. Everyone knew what they wanted to do.

No need, absolutely not necessary.

This time, Yasen from Goldman Sachs, Chelsea from Deutsche Bank, and Denton from DCM arrived in Luzhou two days in advance. After the telephone communication, they conducted close face-to-face communication to ensure that everyone had the same attitude.

And, don’t mind seeking broader shareholder support and strongly oppose new financing plans.

The three companies hold a total of 33.8% of the shares, which already has a strong influence. In addition, Bingxin and the two overseas private equity capitals QT and MNG that came in in the third round hold 12.3%. It is expected that a consensus will be reached. 46.1% of the shares.

This time at the board of directors, the three companies came to do two things. The first was to urge the ice core to be launched as soon as possible, and the second was to resolutely say no to Fang Zhuo!

However, considering their respective circumstances, such as the business changes caused by the tense relationship between Goldman Sachs and Mr. Fang, and the overseas wafer fab jointly built by Deutsche Bank and Ice Core in Germany, this time it was DCM’s Denton who was leading the charge.

As directors of an organization representing shareholders, although the three of them had not had any dealings with Fang Zhuo, they were familiar with his style of doing things. They communicated repeatedly before the meeting, hoping to get in touch with Fang Zhuo, who was a shareholder but did not have a director seat. QT and MNG, unfortunately there is no result yet, but their attitudes have been united.

At ten o'clock in the morning on October 10, the time for the Bingxin Board of Directors had arrived, but the leader Fang Zhuo had not yet appeared.

"President Fang's flight was probably delayed." Denton's Chinese was very standard and he smiled at Co-CEO Liang Mengsong, who was also attending the meeting.

Liang Mengsong looked at the director coldly without any reaction.

Denton was a little unhappy and glanced at his companions on the other side. Deutsche Bank's Chelsea was chatting and laughing with CEO Qiu Ciyun. The two of them had had several good communications in Germany.

He frowned. If Chelsea can do it, he should be able to do it too.

Denton still hoped to establish a spiritual connection with the co-CEO and make some preparations for the next meeting, and then said: "Mr. Fang has a very high reputation in the industry. This time he proposed refinancing, oh, it's really It’s surprising.”

Liang Mengsong looked over, but his eyes seemed not to be in front of him.

"Mr. Liang, I don't have to talk about this merger..." Denton was interrupted by the co-CEO.

Liang Mengsong sighed and said: "The depth of the gate trench is shallow, so dry etching technology is still needed. The etching time and rate must be precise to ensure the accuracy of the trench depth."

Denton: "???"

He looked at the co-CEO a little blankly. He was sure that he understood every Chinese character, but he really didn't understand what it meant when they were put together.

Denton thought for a while and asked politely in English: "Mr. Liang, what did you just say?"

Liang Mengsong repeated the results of his thinking in English.

Denton was sure that he still didn't understand this time, but this was undoubtedly a problem with the ice core's craftsmanship.

However, I am talking to you about today’s financing negotiation. Isn’t it impolite for you to talk about this with me?

"Dry etching technology is too difficult." CEO Qiu Ciyun picked up the topic, "The control of this precision will be a big problem."

Liang Mengsong's eyes suddenly turned sharp: "Isn't it difficult to do it? Which craft is not difficult?"

"It's not that we won't do it, but that we need to consider a more reasonable process matching and progress." Qiu Ciyun frowned and refuted.

The two argued over technical issues, and it was still the dispute over the front and rear gate plans that had been entangled inside the ice core during this period.

Denton said to Chelsea, who quietly sat back next to him: "The CEO and the co-CEO are at odds. This is a favorable signal for our board of directors."

The two people were arguing and their faces were red.

There are seven people on the board of directors. The three companies came here to show that the directors cannot be ignored. If necessary, they will not rule out the proposal to convene a shareholders' meeting.

But if you can get a vote on the board of directors, the process will be more convenient.

At this moment, the door of the conference room was pushed open, and Fang Zhuo, the head of Bingxin, walked in hurriedly.

Denton and Chelsea looked at each other, and both saw a deep look in each other's eyes that was wary, admiration, and fear. The old devil is here!

"Mr. Fang!"

Everyone in the conference room stood up in unison to welcome the major shareholders.

"Sit, everyone, sit down." Fang Zhuo waved his hand.

Yasen from Goldman Sachs, Chelsea from Deutsche Bank, Denton from DCM, and Xiong Xiaoge from IDG all sat down.

But Denton noticed that CEO Qiu Ciyun and co-CEO Liang Mengsong were still standing, and a thought came to his mind: Will they continue to fight even if the boss comes?

"Oh, Mr. Qiu, Dr. Liang, you go ahead, I'll be fine here." Fang Zhuo noticed the two men's eagerness.

Qiu Ciyun and Liang Mengsong nodded, turned around and left the conference room.

Denton was a little confused: "Wait, wait, Mr. Fang, isn't there a board meeting? Where are Mr. Qiu and Mr. Liang going?"

"All their votes are with me." Fang Zhuo explained, and then asked the DCM representative, "Do I need to sign a written concerted action agreement?"

Denton choked, noticing the impatient expression of co-CEO Liang Mengsong, and silently shook his head, there was no need.

Fang Zhuo nodded, took the tea poured by his secretary Liu Zonghong, took a sip before saying, "Is everyone in agreement?"

The five-person board fell silent.

Xiong Xiaoge also raised his glass and drank tea silently.

Fang Zhuo glanced at Lao Xiong, who didn't say hello, and felt that his demeanor was different after acquiring IDG. He was in a good mood and gained weight again.

Xiong Xiaoge received the look and said "cough" before speaking.

"Mr. Fang, it's hard to reach a consensus on this matter." Yassen from Goldman Sachs spoke first, and he expressed objections every time he spoke.

He had conducted in-depth research on President Fang and Yike Department, and knew that the head of IDG wore the same pants as President Fang.

There is a saying in the Chinese industry that there is a bear on the left and a dog on the right, which refers to the relationship between Mr. Fang and the two major investors in the investment circle.

"Why?" Fang Zhuo asked gently.

"Why? This, this..." Yasen was startled, "Because the ice core does not need financing now, and it can get enough money to build a production line and invest in R\u0026D without financing from us!"

Fang Zhuo glanced at the others and asked: "Everyone should have read the ice core future plan sent to you. We have production line construction plans in Shanghai, Xi'an and the future Yangcheng. This still requires funds. This Part of it is used to leverage funds for construction, so how can we say there is no need for financing?”

"Huaxia localities welcome ice cores. As far as I know, the production line in Yangcheng is operated on a commissioned basis, and the local government advances funds in the early stage." DCM's Denton pointed out one point.

Fang Zhuo asked again: "Who did you listen to?"

Denton was stunned for a moment: "That's what they say."

When Fang Zhuo saw what he said, he simply refuted the rumor: "It's false."

Denton: "?"

Fake? Is it true or false?

Marde, can you believe what Mr. Fang said?

"The current financial demand for ice core is indeed not like before, and local governments are indeed willing to invest funds for joint development. This is the same even in Germany." Fang Zhuo nodded at Deutsche Bank's Chelsea and continued, " But this is by no means unconditional support, and all information is subject to what I say.”

The latest and accurate news is that Yangcheng is willing to advance the capital, but I won't let it be fully advanced. All the news that has been circulated before is invalid.

Chelsea thought about the production lines of Deutsche Bank and Ice Core in Germany and did not say anything immediately.

"Even so, even if Bingxin's estimated revenue of up to 3 billion U.S. dollars this year can't raise the money, Mr. Fang, if you want to raise funds, just bring in other institutions. Why do we have to pay for it?" Denton pointed out. The most unreasonable point.

Bingxin has to raise funds before going public, but why does it need to raise funds for itself?

If you want money, just look for other places.

The most unacceptable thing is that the financing ratio proposed by Bingxin is extremely unreasonable. It wants to raise US$1.5 billion but only releases 8% of the shares. This means that the valuation of Bingxin in this round has jumped sharply to US$18.75 billion. .

The most obvious direct comparison is Taiji. As the industry leader, Taiji's current market value is US$45 billion, and its revenue estimate for this year is almost 4.5 times that of Bingxin.

Regardless of revenue scale or technology accumulation, Taiji far exceeds Bingxin.

Now that Ice Core has not been listed on the market, it has been estimated at 18.75 billion. What kind of performance support will it use after it is listed?

I'm afraid it will break if it's not listed on the market, and I'll be locked up immediately!

Denton impassionedly pointed out the irrationality of Bingxin’s financing, quoted Taiwan Journal’s leading status and revenue growth data, and stood up directly when talking about emotional points.

There is merit in using industry leading companies to measure valuation.

Fang Zhuo listened quietly to Denton's explanation and said relaxedly: "Denton, indeed, Taiji's revenue and technology are both leading. Bingxin's valuation of 180 seems too much, but in fact, this is because..."

He gave his own rebuttal: "The market value of Taiji is extremely undervalued."

It’s not that we set it too high, it’s that Taiwan Records set it too low!

When the faucet of Taiwan Records is lowered, we appear to be very tall.

Denton: "..."

He didn't expect that the standards he came up with could change, and he stood stunned on the spot.

Xiong Xiaoge noticed this person's expression and almost couldn't help laughing. Well, Mr. Fang's views are very thought-provoking. Mr. Denton is already rebuilding his thinking logic.

"Don't you believe it?" Fang Zhuo said, "If you don't believe it, here is a witness. We have made a private bet of 10 million U.S. dollars. Taiji will soon be a company worth 100 billion U.S. dollars in the future. Well, in three or four years. How about it?"

Denton asked, "Three years or four years?"

"Just three years." Fang Zhuo thought for a while, "In October 2013, Taiji was a company with a hundred billion US dollars. Our ice core was listed before that, so it is very reasonable to measure the current valuation in this way. .”

Denton was silent.

"Ten million dollars, no matter how young or old you are," Fang Zhuo said with a smile.

Denton considered the current market value of Taiwan Journal and the three-year period, and felt that it was still a bit difficult. Hearing the bet of "ten million US dollars", he opened his mouth and said: "Okay, then I will..."

He paused: "Then I won't bet with you."

I bet and I was fooled!

The losers of the last round of gambling all jumped off the rooftop!

"I am representing DCM today, not here to bet with you." Denton said calmly.

"Then let someone else be the DCM. You don't trust your own judgment. The communication between us is really a bit reluctant." Fang Zhuo shook his head slightly.

"Whether DCM will be replaced or not, that is a matter for later, Mr. Fang, Goldman Sachs is not willing to participate in this financing." Goldman Sachs Yasen Exports, who was watching, eased Denton's situation and expressed his attitude.

Fang Zhuo turned his eyes to Goldman Sachs and frowned: "Goldman Sachs doesn't want to see ice cores listed on the market?"

Yasen said in shock: "No, these are two different things."

Fang Zhuo said firmly: "It's the same thing."

Xiong Xiaoge felt a familiar feeling. When Mr. Fang said one thing, it was the same thing. If Mr. Fang wanted to confuse it, it was the same thing.