King of Capital

Chapter 13 Fundraising and Leading the Way

Zhao Mengche attacked twice in succession and was rejected both soft and hard, so he had to temporarily put away his magical powers.

Stanford's sharp-eyed and quick-handed leader took over the leadership and said, "The prospectus has three key points: history, business, and finance. I took a financial law course as an elective in graduate school, so I can lead someone to be responsible for the history section."

He doesn't have the ability to arrange things for others, but he does have the ability to arrange things for himself, and it's very great.

The prospectus can be divided into 'historical evolution', 'business and technology', and 'financial information' in order of writing, and is mainly divided into legal, business, and financial from a professional perspective.

Does the company have any dark history in its development? Are the shareholders clean and have they committed any crimes? What is its main business? How does it make money? Does it have any core technology that is irreplaceable?

In addition to being shown to relevant review departments, the prospectus is also mainly shown to buy-side investors.

When writing an online novel, the subject matter must be unique and interesting so that readers will buy it. The same is true for investing.

After looking at the business and technology, the last thing to look at is the financial information, which can be used to verify whether the above content is false.

Generally speaking, the "historical evolution" covers the legal content of the prospectus, and the interns have to update this version of the prospectus for only half a year. During this half-year period, there is unlikely to be any major changes in the "historical evolution" part, and there will be basically no mistakes if you copy the previous version of the prospectus.

Zhao Mengche knew nothing about the prospectus and didn't understand Stanford's little tricks. After a little thought, he was ready to agree on behalf of others.

"The 'historical evolution' section doesn't require two people. Fan Haonan can do it alone." After reading the prospectus table of contents, Xie Jingxing stood up and interrupted.

Fan Haonan lacked confidence: "I can't do it by myself, can you join me?"

"You can do it. Please ask Shen Xin to help you later."

Xie Jingxing passed it over without discussing it, and then looked at Stanford King: "Do you have experience in writing prospectuses?"

“I interned at a law firm during graduate school.”

The latter emphasized that he had relevant background, that the requirements for prospectuses for listing in the United States were simpler than those in China, and that he preferred to outsource the writing of the prospectus to law firms.

Xie Jingxing nodded slightly: "That's great, you will be responsible for the risk factors and peer competition, as well as the text typesetting and proofreading of the entire updated prospectus. Feng Shuo will cooperate with you. If you don't understand, ask He Chuan."

Risk factors and competition among peers are another area related to the law. Feng Shuo majored in chemistry, so his logical thinking and rigor cannot be too bad, so the two of them cannot make too many mistakes when working together.

Fan Haonan has never studied law, but she graduated from the Central University of Finance and Economics after all. She should be sensitive to domestic laws and regulations and eight-legged essays, so it is very appropriate for her to write the "Historical Evolution" part.

Stanford forced Wang to intern at a foreign law firm, but whether he understood the relevant domestic laws and regulations is another matter.

Without waiting for others to comment, Xie Jingxing pressed his hand and continued, "Old Xue, you and Song Anli, get the financial information."

"Qi Tian and I are responsible for business and technology, as well as fundraising and investment. Feng Shuo provides professional knowledge and support. Does anyone have any questions?" He finally promoted the spirit of democracy.

Song Anli was the first one who was unwilling to do so: "I have already interned at the Big Four in college. I came to Juntai to challenge myself in a different major. I want to work in the business and technology part."

"Two people are not enough to handle the finances, right?" Xue Haoran also disagreed.

Stanford forced Wang to add fuel to the fire: "I think there should be at least four people in finance, and one person should be assigned to fund raising and investment."

"You two should lead a group each. I have to follow Qiang's group. I want to do business and technology." Zhao Mengche had a unique perspective.

Several people were talking to each other in a noisy manner, and Xie Jingxing realized that he had just left the little princess behind.

"This is a team project, so everything starts from the whole team, do you agree?" He had to take off his suit jacket for the second time today and pick up the whiteboard and marker.

No one raised a voice to object, as everyone could see that he was going to arrest and kill a chicken on the spot.

Xie Jingxing wrote "Business and Technology" on the whiteboard and started with someone he knew to warm up: "You two both want to do this part, so tell me how to do it?"

"Update the development of the entire industry, technological advancement, and changes in competition and cooperation among peers during the past six months." Song Anli replied as she looked at the content she had just found on the computer.

Xie Jingxing did not comment and continued to ask: "Our prospectus is for a semiconductor materials company. What changes have taken place in the entire industry in the past six months? What are the development expectations for the entire industry in the future, as well as technological iterations... Let alone technological iterations, can you tell me what SIP/DIP/SOP/SOT mean in the semiconductor industry?"

"I can learn it right away." Song Anli blushed slightly.

Xie Jing Xing started to scold directly: "In order to let you challenge and break through yourself, everyone will stay up all night to study hard with you. When the teachers come at nine o'clock tomorrow morning, will they give you a little red flower for 'Three Good Students'?"

"Come on, who among you is willing to sleep on the floor with her in the company? I'll leave this part of the work to you." He looked at the others.

Song Anli's eyes were red again, and little pearls were falling, making me feel pity for her and she was so charming.

The results of the morning's small test were still in everyone's mailbox. Xie Jingxing had personally trained two girls in the morning, but now he suddenly changed his attitude and scolded them in public without any mercy.

The ferocious attack power made everyone feel that there was really no need to go against the wind to plug the bullet hole. It was not shameful to temporarily avoid the attack, which was better than being sprayed into a sieve and embarrassed in public.

"you……"

Xie Jingxing glanced at Zhao Mengche and ignored him. The princess had the nerve to say that she wanted to be in a group with the strong ones. What else could he say? So be it.

He wrote the words "fund raising and investment" on the whiteboard and pointed his gun at Stanford, asking Wang: "Can you explain to us the concept of the fund raising and investment part of the work?"

"Well, to put it simply, it's about how much money to raise from the stock market and what to do with the money."

"Who do you think is suitable for this part of the job?"

“It seems like none of us have experience in this area.”

Xie Jing Xing smiled: "Then I propose that I do it, who agrees and who opposes?"

He looked around, and everyone seemed confused, just like the day of the interview.

Xue Haoran suddenly recalled his unbearable internship experience at Goldman Sachs. He pursed his lips and explained sincerely: "Manufacturing finance involves the concept of cost allocation, which is relatively the most complicated. I have to lead at least two people to do it."

"You lead Song Anli and Zhao Mengche, don't feel pressured. I looked at the catalog, this prospectus should be Juntai's internal study version. The financial statements for the past six months are mainly manual work, and you need to update and check them bit by bit."

Xie Jingxing comforted him with satisfaction.

It was impossible for Juntai to give them a real prospectus to play house with, and he did not expect the interns to make no mistakes. Fewer mistakes was a victory.

"Time is tight and the task is heavy. If there are no problems, just divide the work and start working. If you have any other questions, talk about it now." Xie Jingxing clapped his hands.

Qi Tian sighed, shrugged, and led the way back to the office to start work. In theory, he and Fan Haonan had gotten the most suitable parts of the work, so there was no reason to object. Feng Shuo and Xue Haoran followed the crowd and listened to the orders. Zhao Mengche was not worried about the lack of things but the inequality. As long as no one got what they wanted, it was considered that everyone got it. Not only could she accept it, she even felt like comforting Song Anli.

As for Stanford, his opinion no longer matters. This is a team project and collective interests come first.

The last person who was shot at as a group by Xie Jingxing was now lying on the table crying.

Several boys left the meeting room one after another, and Zhao Mengche and Fan Haonan stayed to comfort Song Anli.

"Feeling wronged?" Xie Jingxing came closer.

After a slap in the face, you have to give a sweet treat. This is the famous "Pavlov's dog drooling law".

Lao Xie once said that personnel management and raising animals are essentially the same, whether it is a dog or an eagle.

Fan Haonan explained on behalf of Song Anli: "You should go and do your work first. She is feeling a little unwell."

"...Do you need any medicine? I'll go get some." Xie Jing Xing asked in a gentle voice.

Zhao Mengche squinted at him and replied impatiently, "Oh, don't worry about it. We'll take care of her."

Xie Jingxing couldn't help but frowned. Fan Haonan quickly stood up and pushed him out of the meeting room: "It's not what you think. She is really feeling unwell and has a stomachache. We are coming here right away and it won't affect the progress of the work."

"Don't worry, please stay with Song Anli for a while. If you have any questions, please tell me at any time."

Xie Jingxing put the little episode behind him and returned to the office area to move bricks.

Investment banking work may sound complicated, but in fact, the three basic steps are to find clients (contracting), process and package clients' products into commodities (making), and find sellers for the commodities (underwriting).

The seemingly glamorous image of investment banking elites in "contracting" and "underwriting" is a job that meets the needs of clients, while "undertaking" which is responsible for 80% of the workload and hard work of processing products is their life.

The unit of measurement in the draft prospectus for listing is kilograms, which shows that financial migrant workers and construction workers do physical work. Even Xie Jingxing has no way to easily reduce his workload. He can only calm down and lay bricks one by one, decorating the products to make people want to spend money to buy them.

"Teacher Xie, how about I switch with Song Anli? I'll go to the finance department and she'll help you."

Just as Xie Jingxing had sorted out his thoughts, Qi Tian came over and said.

He glanced at the time and it was 2:30 in the afternoon: "Song Anli is still not feeling well?"

"Yes, we are worried that Lao Xue and Zhao Mengche will be too busy to handle the business. Can you handle the business alone?" Qi Tian took off his glasses and rubbed his face with both hands. He looked very uncomfortable.

For him, interning on a variety show can be said to be a heavy burden. Under normal circumstances, he would not meet colleagues of the level of Song Anli and Zhao Mengche in his environment.

Xie Jingxing smiled knowingly: "I'm fine, you go over." How could anyone dislike fish dishes when it comes to fried fish? He could only accept it.

"It's been hard work, let's all work hard together."

The 'business, technology and contracting' part that the two were responsible for had just started and there was nothing to connect with, so Qi Tian took his computer and prepared to go to the tea room to report to the financial team.

"Hey, wait a minute." Xie Jingxing stopped him as if he remembered something, "Ask Fan Haonan to come back and sit next to Shen Xin to work. Also, ask Feng Shuo and Stanford to ask He Chuan if they have any questions."

In order to avoid affecting each other, several working groups either hid in the tea room or went to the meeting room. The office area was empty, and He Chuan and Shen Xin occupied a row of eight seats.

Qi Tian lowered his voice and said, "We have already handed over our work. They seem to be quite busy. It would be inappropriate to disturb them."

"How do you know they are busy if you didn't ask?"

Xie Jingxing had no choice but to take out his phone to order afternoon tea: "Tell everyone to sort out the questions they don't understand, and ask Shen Xin to answer them in half an hour."

“…Do American universities still teach social etiquette?”

Qi Tian was speechless, thinking that we are all the same age, it’s okay that you have strong professional skills, but why are you also so thick-skinned?

Xie Jingxing was silent. Is there any need to learn this kind of thing? Wouldn’t it be natural to make your face thicker by walking the night streets more often and getting beaten more often?

After sending Qi Tian away, he ran to Shen Xin's workstation with his computer in hand and sat down, asking sincerely, "Sister Shen Xin, I think the 'fundraising and investment' part of the prospectus is a bit vague. Can you help me take a look?"

"Okay, tell me." Shen Xin readily received the signal for help.

"The original prospectus stated that the issuer's self-developed g/i-line photoresist, KrF positive and negative photoresist and other products. The issuer's monomer products obtained Tokyo JSR rubber synthesis certification last year, and this year received monomer supply orders from Japan Sumitomo and South Korea's Samsung."

Xie Jingxing paused for a moment with an indescribable expression on his face: "I looked at their financials and found that this part of the business accounts for less than 300% of the revenue, million RMB."

Photoresist is the jewel in the crown of semiconductor materials. It is difficult to research and develop. China is currently at a stage where it has to rely on foreign imports. The products of the few companies that have the ability to independently research and produce are also generations behind those of foreign companies.

'Monomer' is one of the essential upstream chemical raw materials for photoresist. Ordinary 'monomer' materials are cheap, but the value of 'monomer' materials that can be used for photoresist production is incomparable.

The prospectus stated that the company supplied photoresist monomers to world-class giants such as Sumitomo Group and Samsung, but it only sold 300 million in a year!
What are you selling? You contracted Samsung's cleaning services and supplied toilet paper to Samsung Group's toilets, so it shouldn't cost you only three million, right?
I have close cooperation with world-class companies. Without my paper supply, they can't do anything!
Listen, this is so fucking domineering that the buyer investors couldn't help but bow down and empty their family savings to subscribe after seeing this.

"There are many descriptions like this. The issuer said that they have two provincial-level technical cooperation support units..." Xie Jingxing described the highlighted issues one by one.

As Stanford said, the "fundraising and investment" part of the prospectus is mainly for buy-side investors to see, explaining how much money the company needs to raise for its listing and what this money will be used for.

The way funds are used is strongly related to the company's business and technology. For example, if we develop new technology, we need money, but it is impossible for our chairman to buy a diamond ring for his mistress and use the company's account.

Therefore, the "Fundraising and Investment" section is usually assigned to the same senior VP to write together with the "Business and Technology" section. Another situation is that the industry in which the company itself operates is too highly specialized, and the senior VP cannot handle the specific business and cannot come up with a reason for raising funds.

At this time, the "fundraising and investment" part will be outsourced to a third-party consulting agency, but the core logic and instinctive habits of the consulting company's writing are problematic.

The two parts they wrote, "Business and Technology, Fundraising and Investment", were completely intended for their clients and their partners to read. They tried every way to brag about how they were far ahead on the left and how they were the industry leader on the right...

The problems with the prospectus mentioned by Xie Jingxing are a typical example of how a trivial matter can be blown up into something big.

However, the fact is that this part of the prospectus is for buyer investors and audit departments to see. Everyone will accept bragging within reasonable limits, but if you brag too much, it is equivalent to fraud.

Apart from wasting the time of buy-side researchers and being blacklisted, they can only fool retail investors and can never reach the level of institutional investors.

Xie Jingxing needed to confirm the problem with Shen Xin. Financial information could not deceive people, and he would be useless if he could not find the problem.

(End of this chapter)