Lu Feng lay in bed, unable to sleep. He knew Su Yourong must be anxious right now, but if he acted more eager, she might realize what was going on.
So we'll have to stay on the line for the next few days; it's a game of who can outlast whom.
Over the next few days, Su Yourong would call Lu Feng almost every day, saying that she had found a suitable company and they could meet to discuss it. Lu Feng was hesitant, and at the same time, he told Su Yourong about the two companies. He preferred the larger venture capital firm and compared the investment terms.
The previously harsh terms had been relaxed considerably, and Thursday arrived in the blink of an eye. Lu Feng knew he had to give her some confidence, otherwise she might really give up.
“These two companies are already the highest valued, only 200 million less than that one. The other one has a lot of terms and conditions, while this one is much more lenient. What are you still hesitating for?” Su Yourong said with considerable dissatisfaction on the phone, “I’ve been talking to you so much these past few days, it’s not like I’m trying to make money off you.”
"You still want a brokerage fee?" Lu Feng asked, somewhat incredulously.
“This is a company decision, and I don’t want to accept it either, but it needs to be reflected in the financial statements. The industry standard is usually three percent, but you can give me one percent.” Su Yourong felt that she couldn’t explain it clearly over the phone, so she said, “Are you home? I’ll come over now.”
The call ended, and Lu Feng sighed, thinking to himself, "Let's do it today."
Less than forty minutes later, Su Yourong arrived. She seemed to be in a hurry, as she hadn't even bothered to put on her makeup. She was wearing a dress and had her hair casually tied up.
“You’re so hesitant. You never used to be like this,” Su Yourong said, stepping forward. “Can’t you even figure this out? What are the conditions over there? What are the conditions over here? Besides, if you sign the contract now, what if they figure out your background and then stall you for a month or two in the process?”
“These are all problems. Everything has risks. But is your side really that secure?” Lu Feng said to her, “Sit down and have some water! This side is very sincere. At least it’s a path. I checked your two companies. They haven’t made any major investments before, have they?”
Su Yourong sat down, took a sip of water, and said, "Let me tell you, things are actually more stable here. These companies all have big bosses behind them, they just can't show their faces. I used my connections to find them. If you accept the investment, you can complete the process and get the money in a week at most!"
“The procedures in Hong Kong are much simpler than those internationally!” Lu Feng took a deep breath, as if he were making a major decision.
"You weren't like this before!" Su Yourong looked at him with a slight frown and said, "Is this choice really that difficult?"
“Once we accept overseas financing, Hurricane Capital will be considered an international company.” Lu Feng hesitated for a moment, seemingly resigned, and said, “Alright, let’s deal with the immediate problem first. Let’s go meet those two investors. I’ll bring Hurricane Capital’s documents. If everything is fine, we can sign today?”
"Can!"
Half an hour later, Lu Feng and Su Yourong reviewed their respective requirements: both parties would hold 40% of the shares, send a finance team, have no authority over the management, have no profit requirements, and submit a progress report every six months, outlining the progress of major projects.
This 40% equity stake will not be diluted within three years, and will officially take effect once all funds are in place.
The requirements for Lu Feng are relatively low; as long as Hurricane Capital does not suffer significant losses and the R&D progress continues to be followed up.
At 10:30 a.m., I met with the heads of two companies in the reception room of a five-star hotel. The two men were not old, and looked to be no more than forty years old. They exchanged pleasantries as soon as they met, saying that they had long heard of Lu Feng's reputation and that he was here on behalf of his company to invest. They said that as long as there were no major problems, they could basically sign the agreement today.
Lu Feng handed the prospectus to the two men and then chatted about the company. Lu Feng discovered that one of them couldn't even understand the prospectus and knew nothing about the legal issues related to investing.
Su Yourong helped change the subject, and the two sides reached a preliminary agreement. They then signed an investment intention agreement. Tomorrow, Lu Feng will have the company prepare the relevant materials so that the two sides can connect and gain a thorough understanding of Hurricane Capital's finances, assets, liabilities, and other information.
The two sides had lunch together. In the afternoon, Lu Feng returned to the company and asked Wei Yandan to prepare relevant documents. In the office, Wei Yandan looked at Lu Feng and said, "President Lu, is it too low a valuation to give away 40% of the equity for such a small amount of money?"
"Such a small amount? They gave it based on a valuation of HK$4.8 billion, which is HK$1.92 billion, or US$240 million. What's the current economic climate? You can't calculate this based on Jiafeng's previous situation!" Lu Feng looked at her and said, "After all, opportunities like the Schroder Group are extremely rare!"
“But this $240 million is only enough for one year’s budget. I talked to President Liu, and even if next year’s budget is reduced, it will still be $80 million!” Wei Yandan said with some worry, “What will we do at the beginning of next year?”
"You don't need to worry about this. There's always a way!" Lu Feng told her to prepare the materials.
The process was quick; all agreements and legal procedures were completed within a week, and the funds arrived within half a month. Lu Feng gathered everyone together for a meeting. With the funds in place, there weren't many things Lu Feng needed to pay attention to afterward.
Zhu Lidong briefly discussed the situation in the mainland market, while also expressing his desire to try developing markets in neighboring countries. He noted that the international environment seemed less intense at the moment, and that material suppliers were a significant issue.
Liu Cheng spends most of the month on business trips overseas, mostly in Japan, making it difficult to negotiate a cooperation agreement with Sharp.
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