"Don't worry, I'll help you look around in Hong Kong. It's only April!" Su Yourong comforted her.
"To be honest, the R&D company's funds are about to run out this month. If we don't get investment in May, we won't even be able to pay the R&D staff's salaries. The factory on the mainland is being renovated, which costs a lot of money." Lu Feng said with some worry, "If it really comes down to it, we'll just have to agree for now and we'll talk about the rest later."
Upon hearing this, Su Yourong immediately became anxious and said, "You're planting a time bomb! Hurricane Semiconductor will inevitably need financing in the future. Once the company grows bigger, it will follow in the footsteps of Jiafeng Group."
"Then what can we do? We can't just go bankrupt first, can we?" Lu Feng said helplessly.
"You can use your own money to cover the initial cost, and I'll try my best to find out if we can lower the valuation a bit," Su Yourong offered as a solution.
Lu Feng knew she was trying to stall for time, to investigate the details of the two venture capital firms before taking action, but Lu Feng wasn't going to give her that time.
“I really dare not touch my money. After all these years of hard work, this is all the money I have saved. I plan to set up an overseas trust for myself, as a safety net. As for the valuation, if I hold a small controlling stake and there are no other harsh conditions, the valuation should be at least HK$4 billion. Otherwise, if I sell 20% of the equity for less than HK$800 million, it won't be enough for this year. Besides, the deficit this year is US$200 million, which is HK$1.4 billion. I would have to sell 40% of the equity to make it enough!”
Lu Feng poured out his grievances on the phone, saying that if they could get through this year, next year would be relatively better. The main problem was that the market was bad this year, and R&D was at a critical stage. The chip factory's water and electricity systems needed to be upgraded. Next year, the iterative products will have a market, allowing the chip factory to break even, which would be much better.
In addition, recruiting a batch of top students from mainland universities this graduation season is cheaper than using top international students.
"Let me think of a way for you. I really don't want to see you go down this path again. No matter what, we've known each other for so many years, and I still hope you can do well in the semiconductor industry." Su Yourong said earnestly, as if she was doing all this because of their friendship.
"How about this week? I can only drag it out until this week because signing the contract with them requires a long process. If it's any later, the process will be completed, the money will be in place, and the company will go bankrupt!" Lu Feng continued to press for time.
"I'll try my best!" Su Yourong was getting anxious. She was afraid that in just one week, the investigation team going to Europe wouldn't even be able to find the doors of these two venture capital firms.
"It's getting late, you should get some rest too. I never imagined I'd end up like this. They say true friendship is revealed in times of trouble, and I'm truly grateful to you. If Hurricane had gone bankrupt, I might have needed your help." Lu Feng sighed, reflecting on his hardships.
Su Yourong said she definitely wouldn't listen, as she still had connections in Hong Kong.
After hanging up the phone, Su Yourong sat on the sofa, feeling very suspicious. What Lu Feng said was true. Hurricane Capital was right upstairs from her. Everyone would run into each other in the stairwell, and she would occasionally hear some news from some financial staff.
But Lu Feng was in too much of a hurry!
Su Yourong was also afraid of missing out. Once Lu Feng weathered this crisis and returned to the mainland, he could seek financing from municipal or provincial governments. With his connections, he could get subsidies or something. Regardless of the production situation, making money was a certainty.
The worst thing is to rush things. In any situation, if you take your time and think about the pros and cons, you can figure out what is true and what is false.
But when people get impatient, they become single-minded, their eyes fixed on the goal they imagine, and they forget to observe their surroundings.
Su Yourong panicked and decided to take action after a moment's thought. She immediately called her assistant and asked her to start the operation of the shell companies she had prepared the next day, with United Capital acting as an intermediary to facilitate financing.
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