Reinventing the Millennium

Sina is a very mature company with its own operating logic and model.

Therefore, after providing it with a solid equity structure, Fang Zhuo can safely delegate power and appoint Wang Yan as president to handle daily affairs. He only needs to provide guidance in certain key directions so that this listed company can have a higher stake. market capitalization.

By the way, no matter how small a win-win related transaction is.

The term related-party transaction is a neutral description. It may harm the interests of the company and may also save a lot of commercial negotiation costs.

Fang Zhuo connected Sina's private placement with Goldman Sachs Group in order to save business costs. The private placement is to find suitable investment institutions. Goldman Sachs Group, as an internationally renowned funder, is naturally extremely suitable.

This wave, everyone will be happy.

Goldman Sachs got the stock at a discount to the market price and was happy.

Sina got cash for development and was very happy.

Fang Zhuo... was simply happy.

There are so many ways to play a listed company that it’s hard to put it down.

Just as the chairman of CSMC Ice Core Company was eagerly looking forward to September 1st, Sina Company quickly finalized the private placement investment institutions as Goldman Sachs Group, Industrial and Commercial Bank of China, and Morgan Stanley. The average of the previous 20 trading days 80% of the stock price was increased by issuing 3 million additional shares.

According to the regulations of the U.S. Securities and Exchange Commission (SEC), fixed increase discounts below 20% do not need to be voted on by the shareholders' meeting. Otherwise, even if the board of directors signs a general authorization as usual, it will have to go through another layer of trouble.

In other words, the price of 52*0.8=41.6 US dollars held by Goldman Sachs, ICBC, and Morgan is the best price that can be directly decided by Sina's board of directors. No matter how cheap it is, a shareholders' meeting will have to be held.

On August 31, Sina disclosed its private placement plan, raising a total of US$124.8 million from three investment institutions: Goldman Sachs, ICBC, and Morgan. It will devote itself to the development and expansion of the domestic wireless value-added market, email market, and game market.

Once this plan was disclosed, the secondary market reacted immediately, with the stock price falling from US$55.35 to US$51.60.

Wang Yan, President of Sina, accepted an interview with the media and said that "the private placement is the company's overall long-term strategic plan, and it needs to be matched with part of the funds, which will definitely open up new profitable markets for the company."

At the same time, he also confidently expressed his views on the drop in stock prices: "Our profits in the first quarter are quite good, and the stock price is only a temporary fluctuation. I believe everyone will soon realize that Sina still has huge growth potential."

However, Sina's president's statement did not seem to be recognized by the market. The next day, Sina's stock price fell below the $50 mark. Financial media reporters were not satisfied with interviewing the president this time and called Sina to interview chairman Fang Zhuo.

Everyone knows that Sina's surname is Fang, and this private placement plan must have Fang Zhuo's nod.

The reporter's request for an interview was declined. When he asked for the reason, he received an answer that shocked him - the chairman was not in the company and was attending a signing meeting with the Ministry of Industry and Information Technology today.

This reporter from "China Securities News" immediately called his colleagues and learned that there was indeed a symposium and signing meeting of the Ministry of Industry and Information Technology today, but the interview media for this meeting was at the level of "People's Daily", and the disclosure of relevant information was also through official media channels.

The reporter was a little shocked and began to pay close attention to the news of such a high-level meeting.

On the afternoon of September 1, Fang Zhuo, as the chairman of CSMC Ice Core, attended the Semiconductor Industry Analysis Symposium of the Ministry of Industry and Information Technology and the signing meeting with CSMC.

Although the official support policy was a plan that was developed within a few days, when it was actually implemented, it felt like it had been studied for several months.

Fang Zhuo had no sense of presence in this scene. He basically listened to the analysis, review and planning of the semiconductor industry by the leaders and directors. He heard the strong praise of SMIC and their expectations for the future development of the semiconductor industry. .

It was not until the last ten minutes that Fang Zhuo got a frontal shot from the official media. He said calmly and low-key that he would use CSMC as the basis, seize the opportunities given by the times, vigorously develop semiconductor manufacturing projects, and strive to catch up with the world's first-class standards. .

Finally, Fang Zhuo received a key project letter stamped by the Ministry of Industry and Information Technology and received several preferential support policies, including but not limited to subsidies for export products.

This subsidy alone can improve the competitiveness of ice core products, because more than 90% of the sales of wafer factories such as SMIC in the past year were foreign. Even if China develops in the next few years, this proportion will still be Foreign countries account for the vast majority.

After nearly two weeks, Fang Zhuo got the actual preferential policies he wanted. He sincerely thanks all leaders, investors, collaborators, and technical talents.

That night, while urging DCM and Goldman Sachs from a distance, he prepared a small dinner and invited Wang Yan, Xiong Xiaoge and others to see him off. He would stay in Beijing longer than planned and would have to go back home tomorrow. .

The richest man in Shanghai is busy with things in Shanghai, the richest man in Anhui Province has projects in the provincial capital, President Yike has to pay attention to his own road to listing, and the chairman of Medical Science has a scheduled meeting to host. None of these people can stay in the capital for a long time. .

There were not many people at the dinner party, and there were only six people in total including Fangzhuo himself. However, he, the person who organized the party, did not have much time to communicate with each other after eating and drinking. He spent most of the time on the phone.

But no matter what, the sense of ritual before leaving has been completed.

On September 2, Fang Zhuo received a phone interview from a reporter from China Securities Journal before boarding the plane.

After just one night, almost all the reporters' original questions were canceled because on the previous trading day in the United States, Sina's stock price rose slightly and stood above $50 again.

It stands to reason that the news of the private placement will not be digested by the market so quickly, but Sina's stock price went up against the trend after the chairman attended a signing meeting for an unrelated project.

"Mr. Fang, what do you think of the stock price fluctuations after Sina announced its private placement plan?"

"Technical adjustments are normal. Everyone will understand our capital needs for private placement. Investment institutions are also very optimistic about Sina's future development."

“Do you think Sina stock price will return to the high of $55?”

"The domestic market is still growing at a high speed. Not only Sina, but also the entire Internet industry will have further benefits. In fact, there is no need to take things like stock price and market value too seriously. Our focus at Sina is to provide better services to domestic users. This is our only Points of concern.”

"Do you think the stock price returned to the 50 mark last night? Is this related to your attendance at the symposium of the Ministry of Industry and Information Technology?"

Fang Zhuo decided to take this as his last question, and he answered righteously: "These are completely different things. Semiconductors are semiconductors, and Sina is Sina. Everyone is still willing to hold stocks when they see the true value of our Sina. Otherwise, is it because When I see the leader, I think it’s worth buying? Are investors so blind?”

"Okay, okay, I'm going to board the plane. I have confidence in Sina. The domestic Internet is a vast market. Let's wait and see."

The reporter quickly thanked him. Although it was a telephone interview, this was a statement from Sina Chairman on the private placement, and it was a complete reply.

Although, the last sentence seems to have a bit of a joke.

At noon that day, Fang Zhuo led his team back to Shanghai. He didn't want to wait for a moment and made appointments with DCM, Goldman Sachs, and Deutsche Bank to promote the progress of the first round of financing with the preferential policies given by the Ministry of Industry and Information Technology.

All three investment institutions readily agreed.

Especially DCM was the most proactive and made an appointment directly in the afternoon.

Fang Zhuo had a quick lunch, met with Yike's management, and reviewed the situation in the past two weeks. Then, he urgently called Vice President Su Wei back from outside before DCM Connor arrived. .

"What's going on with the marketing department's adjustment plan?"

In the CEO's office, Fang Zhuo made a cup of strong tea. On the table was a plan for surgery, signed by many senior executives.

"This is to better coordinate the marketing department, increase our domestic share, and music market layout..." Su Wei answered sternly, and then was stopped by Fang Zhuo.

"Wait a minute, Teacher Xiao Su, that's not what I want to hear. Whose idea is this? What do you mean?" Fang Zhuo wondered. This plan made a lot of internal adjustments, and he had not had this intention before.

Su Wei pursed her lips: "It was Derek's strong suggestion."

Derek is the CFO of Yike. He was recommended by Goldman Sachs Group and he also has a very impressive work resume.

"Do you also have such a suggestion? Mr. Chu and Mr. Sun who signed the letter also think so?" Fang Zhuo frowned.

Su Wei was stunned: "Derek has rich experience. He believes that our domestic business should move closer to the US market."

"Do you think so too?" Fang Zhuo asked a similar question again.

Su Wei hesitated for a few seconds: "I think at least the music market is not as mature as the American market, so there is no need to get closer for the time being."

"Then why did you sign?" Fang Zhuo asked again.

"Derek has extensive working experience in **** and Goldman Sachs. The suggestion he made..." Su Wei said very truthfully, "I don't agree with it a little, and I plan to wait for you to come back before communicating with you."

Fang Zhuo said rudely: "Then you shouldn't sign this. The adjustment of the marketing department is a top priority, as is the change of strategic direction. Derek, a foreigner, doesn't know much about the domestic market?"

"Not only you, but also other senior executives who signed the contract. Good guy, I went to the capital and when I came back I found that you were going to ransack your house."

"I asked Derek to handle financial compliance issues and make various statements more compliant with SEC requirements. I didn't ask him to dictate."

"Don't be superstitious about his overseas resume. If you feel something is wrong, bring it up."

Fang Zhuo was a little harsh at the end.

Su Wei defended her colleagues: "The main reason is that I am afraid of affecting the company's listing..."

Fang Zhuo shook his head: "I won't do this next time."

After he finished speaking, he picked up the phone and called Xu Kaiwei of Goldman Sachs Group, and said in front of Vice President Su: "What kind of CFO did Goldman Sachs recommend to me? When he arrived at the company, he still wanted to touch my department. He came to help Yike Going public or becoming CFO?"

Xu Kaiwei on the phone asked a few questions about the situation.

Fang Zhuo did not explain in detail. After a few brief remarks, he made a request: "Get a new CFO who knows his responsibilities."

He hung up the phone and said to Su Wei: "Go and inform Derek that the company has dismissed him from his position and will soon replace him with another chief financial officer recommended by Goldman Sachs."

"That's...ok." Su Wei accepted the president's decision.

"There are differences between the southern and northern markets, not to mention the difference between the other side of the ocean and our country? Don't blindly believe in foreign methods. They haven't even figured out their own positioning. How can they figure out the market's positioning?"

"Teacher Xiao Su, as you are both a director and a vice president, you must have a clear understanding of everything."

Fang Zhuo finally said a few words in a gentle tone.

Su Wei left the president's office thoughtfully.

Fang Zhuo picked up the plan book on the table, glanced at it twice and threw it into the trash can. Derek had never had any experience working in China. This operation was purely nonsense. He used his experience in the American market to forcibly graft it into the domestic market. market.

But the persuasiveness brought by such a glorious resume is unparalleled. If it were replaced by other presidents, they might have followed the same nonsense, and they would wake up only after they had made a lot of mistakes-foreign methods and local methods can make the company The best way to live well is to live well.

At 2:30 in the afternoon, Fang Zhuo, the first CFO in the history of Yike who had only served for less than a month, was not affected at all. He received the DCM team in the conference room with a smile.

He took out the proceeds from this trip to the capital, and saw a look of satisfaction on Connor's face as he wished.

"The Chinese government is still happy to see the development of the semiconductor industry, which is a good thing." Connor commented on the action of quickly obtaining preferential policies.

For him, whether it is the United States or China, as long as it is beneficial to the project and beneficial to his investment decision, that is a good thing.

"Well, this is our opportunity. There are still few semiconductor projects in the country. In another two years, I'm afraid we won't be able to get such a discount." Fang Zhuo said with a smile.

Connor nodded. It was very possible. Rare things are worth more.

Fang Zhuo chatted about the details of the trip to the capital, and then said: "CSMC's funds have begun to be partially received, and the 1.3 billion contract of Luzhou State Investment has been officially signed. We will start purchasing equipment in batches and replenish the funds at the same time. ."

The funds from Yike Group, MIGA Fund, Luzhou State-owned Assets Investment Corporation, and China Enterprise Investment Corporation are all in place. This is not a small amount. It already accounts for 50% of the total budget, which is close to 500 million U.S. dollars. If you include the social investment funds obtained by IDG , the amount planned to be received has exceeded 500 million US dollars.

Coupled with the preferential policies stamped by the Ministry of Industry and Information Technology, Bingxin CSMC is making great strides forward.

Connor asked: "How about Deutsche Bank, Goldman Sachs, and IDG?"

"IDG has secured some funds because their U.S. and Chinese businesses are relatively independent. I'm afraid it will take some time. The other two companies are also advancing, and the process is fast or slow. Goldman Sachs Group will first sign an initial agreement with us." Fang Zhuo said.

The initial agreement signed by Goldman Sachs is hard-won and is the result that will be promoted after Yike's listing and Sina's private placement.

Connor nodded slightly and promised: "We at DCM will strive to complete all investment processes early this month. It is best to see the initial signature from Goldman Sachs before then, so that it can be faster."

Fang Zhuo smiled and stretched out his right hand: "No problem."

Connor shook hands vigorously and said with a smile: "Sometimes, I don't know the difference between investing one step earlier and one step later. Since I am optimistic about this project, of course I will fully support it."

"We at DCM fully support CSMC in becoming the best wafer foundry in mainland China."

Fang Zhuo sighed in his heart that if every family had more people like Mr. Connor, the world would become a better place.