Starting out as a drug dealer in 1988

"Mr. Zhao, we should be considered old friends, right?"

Song Weixuan had a faint smile on his face, without any anger or dissatisfaction after being rejected. He even reached out and grabbed Zhao Wenhao's arm, pulling him back to the sofa.

Zhao Wenhao was a little surprised by Song Weixuan's sudden action, but he quickly regained his composure, cooperated and sat back on the sofa, and responded with a smile: "Of course, of course we are old friends."

"In that case, let's not waste any more time and get straight to the point."

Song Weixuan's smile remained unchanged as he continued, "Regarding your company's valuation, I discussed it with Mr. Doug before I came here, and we have a clear range. A valuation of 100 billion is the ideal option for us, but if you think this number is not appropriate, then we can definitely sit down and have a good discussion."

After saying that, Song Weixuan turned to look at Doug beside him, who nodded slightly in agreement.

Then, he turned his gaze to Zhao Wenhao again, with a firm light in his eyes: "You can share your opinion. I believe that Mr. Zhao is definitely not the kind of person who would ask for an exorbitant price. After all, you just said that we are already old friends."

"Since you said so, I'll just say it straight." Zhao Wenhao said frankly.

"First, although Ausima is also engaged in the home appliance industry, its product line is far less comprehensive than ours. They don't even cover products like air conditioners and freezers.

Secondly, in terms of brand awareness and sales, we have a clear advantage. In Europe and the United States, their sales performance is less than half of ours.

Third, regarding product quality, our full range of home appliances has been granted 1365 patents, many of which are world-leading technologies, such as inverter technology.

Based solely on the above three points, if our company successfully goes public, its market capitalization will undoubtedly be several times greater than that of Ausma, and only then will it be considered a reasonable valuation. Of course, as you mentioned, we haven't yet gone public, so we can't be evaluated according to this standard.

But even so, considering our company's current scale, market share and future development potential, I believe its valuation should be at least more than 150 billion yuan."

Song Weixuan didn't make any special moves, he just raised his head and looked at Doug beside him.

150 billion! This figure obviously exceeded their initial estimate.

Although the 100 billion they proposed previously was already their lowest price, even so, deep down in their hearts, Hengyuan Electronics' value could only be around 120 billion at most.

However, at this moment, Zhao Wenhao quoted a high price of 150 billion without hesitation.

What’s even more surprising is that this is only the lowest price in his mind.

"Mr. Zhao, please forgive me for being blunt, but your offer is simply too high. Although Hengyuan Electronics does have great development potential, if your current offer is too high, the profits we can earn when the company goes public will be limited."

Doug finally suppressed his anger and responded in a sincere tone.

From Doug's perspective, he believes that after Hengyuan Electronics is successfully listed in Hong Kong Island in the future, referring to other similar cases, if all conditions are met, the company's market value may quickly climb to 300 billion or even 400 billion yuan.

However, the possibility of breaking through the market value of 400 billion yuan is very slim.

This is only possible when the securities market is in an explosive period.

However, under normal circumstances, the shares of major shareholders of listed companies will be restricted within six months and cannot be sold at will.

No one can predict or guarantee what the securities market situation will be like six months from now.

&34;Mr. Doug, as an investor, you should be very familiar with the approximate price-to-earnings ratio of industrial companies like ours.

In addition, our industry is not like the Internet, which can create profit margins of dozens or even hundreds of times once it goes public.

This is really an unrealistic fantasy.

Also, I would like to make it clear to you two that the 150 billion valuation is only for you two.

If I had switched to another investment company, the price I would have offered would have been higher. &34;

Zhao Wenhao calmly told the two the truth.

In fact, in Zhao Wenhao's opinion, they were a little too greedy.

When the company raised funds for the first time, its valuation was only 53 billion, and they each acquired 5% of the shares.

The second round of financing will naturally see a substantial increase, and Doug and Song Weixuan hope to gain more profits.

Of course, Zhao Wenhao couldn't completely fulfill their wishes on this point. He couldn't make a significant concession on his own profits.

"No, no!" Doug was very stubborn and didn't really listen to Zhao Wenhao's words. "Mr. Zhao, you should know that if your company wants to be listed on Hong Kong Island, there is still a long way to go.

We at Goldman Sachs have our own advantages in these areas and can help you save a lot of trouble.

You should take all of this into consideration, rather than treating us as ordinary investors."

"So, what valuation do you think Mr. Doug should use?" Zhao Wenhao asked casually without changing his expression.

"120 billion is our bottom line," Doug said seriously. "If the price exceeds this, I think it will cause significant damage to our company's interests."

Zhao Wenhao chuckled and said, "Mr. Doug, since you think this will cause damage to your company, I have a suggestion."

Doug was stunned. He didn't know what Zhao Wenhao was up to.

"Mr. Doug, how about this? I will buy back the 5% stake that Goldman Sachs owns, and the price will be calculated based on the 150 billion valuation.

When Goldman Sachs acquired this 5% stake, it cost you a total of 2.65 million yuan, and now I am willing to buy it back for 7.5 million yuan.

In this way, you directly earned more than 4 million yuan.

What do you think? "

Zhao Wenhao didn't give Doug any face at all. Since they were in a negotiation, he had to show the right attitude. He couldn't let these foreigners manipulate him.

Besides, the initiative is in his hands now. If the negotiations really fail, the worst that can happen is that he will go to Sequoia and Citigroup to talk.

With the capabilities of Sequoia and Citibank, it is not a difficult task to arrange the listing of Hengyuan Electronics in Hong Kong Island.

Moreover, Zhao Wenhao wasn't just speaking in anger just now.

If possible, he would be fully willing to take back the 10% shares held by Goldman Sachs and Meifeng Group.

Unfortunately, Song Weixuan and Doug are not fools.

How could they possibly agree to such a request?

In just less than two years, the two companies invested a total of 5.3 million yuan, and now it has increased to 7.5 million yuan. Such a good investment is not something you can find everywhere.

There was no way they were giving up.