Chapter 52 Ping Mei? You really dare to think
Shi Zhenglin spent ten minutes explaining his work, faithfully presenting Xingtan's situation, indicating that it would be ready for listing in two months. Yang Chengkai nodded happily. His original plan for a nine-month preparatory period had been shortened to six months by Shi Zhenglin, and Yang Chengkai was about to cross the threshold of the stock exchange. His drunken blush intensified, becoming even brighter. Going public had been a dream he had worked hard for years. "The net profit, revenue, and growth rates we've compiled now should be impressive in the capital market, right?" Yang Chengkai confirmed. "Of course. The related-party transactions have also been handled, don't worry." Shi Zhenglin's contribution far exceeded his expectations. The listing team was well integrated, especially in core R&D. He had leveraged his own resources to supplement the powerful figure he, the boss, couldn't bring in. Some historical issues that had been weighing on his mind had now been resolved legally and compliantly. Key terms related to the strategic investment had also been agreed upon, safeguarding his bottom line. He breathed a sigh of relief and drank half a cup of the yogurt the tea artist had just brought in to sober him up. "Zhenglin, these past six months haven't been easy for us. You've made an invaluable contribution, working day and night." Shi Zhenglin pulled out a tissue and handed it to him. "Xingtan's fundamentals are solid, and the boss has accomplished remarkable things over the years." Yang Chengkai wiped his lips. "My only regret is that IM's data isn't out yet, and we've had so many people talking to them. I suspect once the numbers come out, if they're positive, everyone will want to buy in, and the price will be so high that we can't merge as planned. Could you please step in if necessary?" As he expected, Yang Chengkai brought this up. Shi Zhenglin was one of IM's angel investors. The founder was a research scientist he knew well. Later, the project pipeline successfully developed, attracting investment, with VC and PE firms joining. When Yang Chengkai approached him about joining Xingtan, he was candid about his involvement in the investment. After joining, Yang Chengkai told him he wanted to discuss a partnership with IM. He stated that his involvement would involve related-party transactions, a violation of regulations, and could affect the company's listing. He didn't express any opinion interfering with his boss's thinking. He simply helped introduce the agent, Li Xuan, to the founder of IM, and Yang Chengkai personally facilitated the process, allowing a third party to handle the transaction. He also made preparations to mitigate the risks of related-party transactions, providing written details of his investment in IM and strictly avoiding any voting mechanisms, maintaining a segregated position. He considered that if Yang Chengkai brought up this matter tonight, it would be one of his leverage points for resigning. Yang Chengkai wanted him to intervene because he knew that Shi Zhenglin had introduced IM's large PE firm to the founder. He simply hoped that if the price was equal, he could mediate between the large PE firm and the founder...
Shi Zhenglin spent ten minutes talking about his work, truthfully presenting that Xingtan would be able to apply for listing in two months.
Yang Chengkai nodded happily. His original nine-month preparation period had been shortened by Shi Zhenglin to just six months. His drunken blush intensified, radiating ever brighter. Going public had been his dream for years.
"The financial data such as net profit, revenue and growth rate that have been sorted out now should be considered impressive in the capital market, right?" Yang Chengkai confirmed the core.
"Of course. The related-party transactions have also been handled, don't worry."
Shi Zhenglin's contribution has far exceeded his expectations. The listing team is well integrated, especially in core R&D. He used his own resources to supplement the strong people that even he, the boss, could not bring in. Some historical issues that have been bothering him have now been resolved in a compliant and legal manner. The key terms involved in the strategic investment have also been agreed upon, thus safeguarding his bottom line.
He breathed a sigh of relief, then lay back and drank half a cup of yogurt that the tea artist had just brought in to help him sober up.
"Zhenglin, these past six months haven't been easy for us. You've made an invaluable contribution, working day and night and doing your best."
Shi Zhenglin pulled out a tissue and handed it to him. "Xingtan's fundamentals are solid, and the boss has accomplished a remarkable amount over the years."
Yang Chengkai wiped his mouth. "My only regret is that IM's data hasn't come out yet. We've had too many people talking to them. I suspect that once the data comes out, if it's positive, several parties will want to buy in. The price will be too high, and we won't be able to merge as planned. If necessary, could you step in?"
As he expected, Yang Chengkai would indeed bring this up.
Shi Zhenglin is one of the angel round investors of IM. The founder is a R&D scientist he is very familiar with. Later, the project pipeline was incubated smoothly and was favored by capital, and VCs and PEs came in one after another.
When Yang Chengkai approached him about joining Xingtan, he was candid about the investment project he was involved in. After joining, Yang Chengkai told him he wanted to discuss a partnership with IM. He stated that his involvement would involve related-party transactions, violate regulations, and affect the company's listing. He didn't express any opinion interfering with his boss's thinking. He simply introduced the agent, Li Xuan, to the founder of IM, and Yang Chengkai personally facilitated the transaction, allowing a third party to handle the matter. He also took steps to mitigate the risks of related-party transactions, providing written details of his investment in IM and strictly avoiding any voting process, maintaining a segregated position.
He thought that if Yang Chengkai brought up this matter tonight, it would be one of his leverages to negotiate his resignation.
Yang Chengkai wanted him to come forward because he knew that Shi Zhenglin had introduced the big PE of IM to the founder. He simply hoped that under the same price conditions, he could come forward to coordinate the big PE and the founder to favor the transaction with Xingtan.
Those like Shi Zhenglin who invested in the angel round with a small amount of capital can expect a lucrative return on their investment, but they have no decision-making power unless they form a coalition with other small shareholders. The decision-makers are the large private equity firms and major shareholders.
He replied, "We small shareholders can't interfere with their decisions. We'll do our best to assist the boss once the 1M data comes out."
Yang Chengkai smiled but didn't make any more requests. Then, remembering that he had said he wanted to discuss personal matters last night, he sensed something was amiss and changed the subject, "If there's anything I can help you with, just let me know."
He adjusted his sitting position, leaning forward slightly, his expression solemn as he uttered the words that had been burning in his throat all night, "I'm sorry, but due to family reasons, I won't be able to devote myself to work for some time. After careful consideration, I'm resigning."
The most difficult words were finally spoken. He paused briefly before continuing, "I'm well aware that this is a critical period for the company's IPO. We've already developed a comprehensive transition plan to hedge risks and ensure there's no negative impact on the listing."
Yang Chengkai's face instantly turned red. After all, he was a man who had experienced many ups and downs. He was silent for a moment, his expression turned pale, and he stared at him and asked, "Family reasons? Necessary?"
"I wouldn't make this decision unless I had to." He looked him in the eyes, honestly.
He didn't bring up Shi Shi's anxiety disorder, not wanting his daughter to become a topic of conversation. He didn't need to elicit empathy or understanding. He knew that if it harmed the company's interests and affected the success of the IPO, even if it was because he had a terminal illness, it would be unforgivable in Yang Chengkai's eyes. As long as the company's interests were protected, any excuse was irrelevant.
Simply stating family reasons without specifying the specific personal difficulties would cause Yang Chengkai to suspect other motives for leaving.
"You broke the original agreement, Shi Zhenglin. This is not your style. I have always been optimistic about you. I am generally not wrong about people." Yang Chengkai leaned back in his chair and gave him a look of cold disappointment.
"I'm sorry to disappoint the boss. All I can do now is to make sure that personal changes do not become an obstacle to the listing."
"How do you ensure that?"
"If necessary, I am willing to transition as a consultant and sign a transition agreement to assist with liaisons with regulators and key clients, without affecting the continuity of key listing matters. I previously signed a one-year non-compete agreement, which stipulates that I will not hold any position in this industry for one year after leaving. If necessary, I can also add that I will not be involved in any other industry or any form of entrepreneurship besides this one."
In exchange for his broken promise to get out, he sacrificed any opportunities he had in the next year.
Yang Chengkai's face relaxed a little. It was obvious that he was really in trouble. Without saying a word, he pulled out a drawer on the side of the tea table and took out three small sandalwood sticks. He stood up and went to the entrance, lit the sandalwood sticks, and then inserted them into the ceramic incense burner under the solid wood screen.
It was his habit to light sandalwood to help him meditate. He sought peace.
"Zhenglin, I'm still your boss today, so I'll be frank. I don't know what's going on in your family, but sacrificing your career isn't the right thing for a man. I hope you'll reconsider. I won't agree." He paced back and forth a few times before returning to sit down. "This isn't just about you leaving. This is a matter that affects the entire team, raising regulatory concerns and eroding investor confidence."
There is no friendship in the face of interests.
He would not let him off the boat easily, and his previous disappointment turned into rational bargaining.
Shi Zhenglin knew he was referring to a chain reaction of resignations.
He continued with his transition plan, "I won't disclose this to the team until a successor is confirmed. The specific departure date will be coordinated with the filing of listing materials and the appointment of a successor. During this period, I will not slack off on the IPO process due to my impending departure. At the appointed time, I will communicate with each team member individually, emphasizing that the company's IPO goal remains unchanged, and that we will all agree to jointly issue a 'Joint Statement' to emphasize the stability of the overall team structure. I will also communicate with the intermediary agency to ensure compliance disclosure of management changes in the prospectus."
Several core members of the team were people he found himself, and he can now arrange for the others.
After he said this, Yang Chengkai realized that the team was actually a lever for him to leave.
Seeing Yang Chengkai fall silent again, he took out another handle and said, "Even if I'm not at Xingtan anymore, the boss is still my boss. Regarding IM, I still need to consider conflicts of interest within a year after leaving. But without the Xingtan identity, I will do my best to assist the boss in my own way."
He then brought up a case study of a pharmaceutical company, saying that the company also changed its CEO at this stage before going public, that the transition mechanism was sound, and that the company ultimately passed the review smoothly.
Yang Chengkai only had one last rope left to tie him up. "You can't leave until your replacement comes. There's no suitable person internally. It's not that easy to find someone. You and I put a lot of effort into hiring him."
He searched all the people he knew in the industry before finding Shi Zhenglin.
Shi Zhenglin looked at him but didn't respond. This was a hiring issue that every boss had to face, and he had to face it.
He was sincerely trying to help him find someone better. But if he pushed someone he had some connection with directly at this point, he would resist, no matter how good the person was. How could he easily trust someone he knew who was being pushed by the person leaving?
"Tell me, where can I find a replacement?" Yang Chengkai's tone became impatient. He thought quickly, but couldn't find a suitable one, and he became emotional.
He guided that "finding a replacement from a high-performing, listed pharmaceutical company would not only add points to Xingtan's listing, but also be beneficial to the subsequent rise in its stock price."
Yang Chengkai sneered, "How many incumbent CEOs are there with outstanding performance? Tell me."
He took the opportunity to talk about people in the Greater Bay Area, "People like Ping Mei from Qimai and Fang Jin from Zhongtang have seen growth in their performance in recent years and have great influence in the industry."
It sounded like a casual mention, but in reality, he had carefully considered it. He deliberately put Ping Mei, Qi Mai, first. He was sure that he would be interested in Ping Mei.
"Qimai Pingmei? You're really imagining that. Do you know her?"
Yang Chengkai knew Qimai Pharmaceutical, run by Ping Mei, well. He thought it would be impossible to negotiate with her, as it would be too expensive. He had never met her, but he knew her boss. He thought it was impossible for him to poach her directly, unless he used an intermediary to find out.
"No, we only met briefly at some industry events before," Shi Zhenglin replied.
Yang Chengkai was actually attracted to this person. "Would you like to go and talk to him?"
"I'm not suitable. I'm not very familiar with it. I suggest professionals do professional things. You can ask HR's Jiang Lingli to find a way to contact them."
He took the opportunity to bring the matter to Jiang Lingli, who was the person Yang Chengkai trusted most in personnel matters at that time.
If he directly recommended a headhunter to him, it would be frowned upon. He concluded that Jiang Lingli, unable to contact Ping Mei, would definitely seek a headhunter, and if she did, she would definitely choose Lin He first. As long as he was in office, the headhunting contract would definitely go through him.
But that wasn't necessarily the case; he was taking a gamble. By dragging Ping Mei, a high-performing CEO, into Yang Chengkai's sights, he was betting on Long Weihe's ability, her cooperation, and Ping Mei's acceptance and successful departure.
He had prepared a backup person, but this person was not Yang Chengkai's first choice, and now was not the right time.
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