AB share model.

The shares are divided into two series, A and B, with 1 vote for Series A common stock issued by outside investors, and N votes (usually 10 votes) per share for Series B held by management.

Qiandu is the first listed company in China to use the AB share system, the founder's shares are Class B shares, and its voting rights are 10 votes for every 1 share, although Li Hong only owns 15.9% of the shares, but has 53.5% of the voting rights, firmly grasping the control of Qiandu Company.

If the AB share model is adopted, the three founders of Wang Zhenyu, Qiao Jianfei and Zhao Yali can firmly control the company even if they only own 10% of the shares, while Zhou Qiang even if he owns 90% of the Class A shares, in terms of voting rights, he is still not as good as three people.

Seeing Zhou Qiang frowning and silent.

Fang Wenxiu opened his mouth and said: "Dong Wang, this condition is a bit harsh, and it is difficult for our company to accept. ”

"What's so harsh about this, your company takes the money to invest, we are responsible for the management, everyone earns the money together, and the AB share model will not affect the dividends. Zhao Liya said.

"Then let me ask, does your company have mature products?" Fang Wenxiu said.

"Assistant Fang, as I just said, the product is still in the testing stage, and there is no problem with the technology. Zhao Liya said.

"As long as the product has not been tested, no one can guarantee this. Fang Wenxiu said:

"Your company wants to enter the Feizhou market, this is a new field, and can not come up with mature products, the risk of investment is very high, our company at this time to come in, not to sit back and enjoy the success, icing on the cake, but ready to take risks together. ”

"The three of us are the founders of the magic sound company, if the company wants to grow, it must dilute the shares, once we can't control the company, it is very likely to be seized by the capital, which will cause chaos to the company's management, affect the interests of the company, and it is not good for you. Zhao Liya said.

"You don't have to worry about that, I try not to interfere in the management of the company. Zhou Qiang said.

Wang Zhenyu and Zhao Liya glanced at each other, both a little silent.

"Dong Zhou, there were several companies that wanted to invest in our Moyin Real Estate before, and the reason why it was not negotiated is because of this. Wang Zhenyu showed a wry smile.

"I heard that your company used to be called Orange Company, but it has just changed its name. Zhou Qiang said.

"Yes, it was because I wanted to enter the Feizhou market that I changed my name. Wang Zhenyu said.

"Since the name has been changed, it is a new company, and I have taken a lot of risks in this investment, so it is better to add me to the ranks of the founders, and in this round of investment, I hold the original shares of Class B like you. Zhou Qiang said.

"Dong Zhou, is there any difference between this?" asked Wang Zhenyu.

"Of course, there is a difference, if the company wants to develop and grow, it is definitely impossible to have only one round of financing, if you continue to invest in the future, you can implement the AB share model, even if I reinvest, it is also in the name of the company, and when the time comes, it will be a class A share. Zhou Qiang said.

"Your proposal is good, but the company is the three of us, and we have to discuss it again when we go back. Wang Zhenyu said.

"Yes. Zhou Qiang nodded and continued: "This time, how much does your company want to finance?"

"Three hundred million. ”

"What is the market value?" Zhou Qiang asked.

"The estimated market value is 300 million. Wang Zhenyu said.

"This market value is not low. Zhou Qiang said.

"Last year, our company's turnover alone was hundreds of millions. Zhao Liya said.

"But you didn't make a profit, and you lost a lot. Fang Wenxiu said.

"In the early days of the company, it is normal to lose money, and if it really reaches the profit period, and the profit is very high, we have no need for financing. Zhao Liya said.

"Previously, your company said that the total sales volume last year was hundreds of thousands of units, but as far as I know, there is a lot of moisture here, and many of them are sold at reduced prices. Fang Wenxiu said.

"Assistant Fang, you may not know much about the mobile phone industry, the new generation of products is on the market, the previous generation needs to clear the inventory, and it is normal to reduce the price. Wang Zhenyu said.

"Is it normal for your company to still owe a lot of employees' wages now?" Fang Wenxiu asked.

Zhao Liya's face became a little ugly, and she said perfunctorily: "There is a problem with the banking system, and it will be issued in a few days." ”

Fang Wenxiu smiled and said nothing, leaving a glimmer of leeway, and did not continue to ask.

Wang Zhenyu showed a touch of bitterness: "Dong Zhou, what do you think is the right market value?"

"Two billion. Zhou Qiang said.

"It's too low. Wang Zhenyu shook his head.

"How much does Wang Dong think is appropriate?"

"Two and a half billion. ”

"In terms of market capitalization, it's not a big deal, and I'm okay with this valuation. Zhou Qiang spread his hands and said, "However, I hope that the amount of financing will change." ”

"How much does Dong Chou want to raise?" Wang Zhenyu said.

"If Dong Chou thinks that 300 million is too much, can he appropriately reduce the financing amount?" Zhao Liya said.

Zhou Qiang shook his head: "It's not too much, but the financing amount is too small, this investment is not interesting to me, Mr. Wang of Baichuan Company, you can decide directly." ”

"Dong Zhou, how much do you want to invest?" asked Wang Zhenyu.

"A billion. Zhou Qiang said.

Wang Zhenyu's face was a little complicated, and he exchanged a look with Zhao Liya: "Dong Zhou, there are too many, we didn't plan to ask for so much financing in the first round." ”

It is a good thing to have more funds, but their shares will also be diluted, and if Zhou Qiang invests one billion shares, he will account for 40% of the company's shares and become the company's largest shareholder.

"What I want to do is not only to enter the Feizhou market, but to dominate the Feizhou market, without sufficient funds, publicity, technology, and production are not in place, such a big piece of cake, we can't share much. Zhou Qiang said.

"You can take it step by step, at this stage, you really don't need so much money, you really need to be short of money, and you can also carry out a second round of financing. Wang Zhenyu said.

"Dong Wang, your company has not yet matured products, if you really want to do half of it without money, and you can't see mature products and profit returns, no one is willing to finance in, and when the time comes, it will be the Moyin Company that will suffer. Fang Wenxiu said.

"Isn't there still Dong Chou, the God of Wealth? Your company must not be short of money. Zhao Liya said.

"Wolves have more meat and less meat. Zhou Qiang showed a wry smile and said half-truthfully:

"I have several companies under my control, I have a spare money in my hand, they are like hungry wolves, eager to pounce together, if the billion is not invested in your company, it will not take long for them to divide up. ”

"Wang Dong, President Zhao, Dong Zhou is not alarmist, Baichuan Investment Company is doing this, if you really want to target other potential companies, you will definitely try your best to pick money from Dong Zhou and invest in other companies, when it is time for Moyin Company to use money, Dong Zhou may not have ready-made funds in his hands. Fang Wenxiu said.

"I didn't expect that there would be more companies and this trouble. Wang Zhenyu said.

"I am very optimistic about Transsion, and I also hope that our company can develop rapidly, so I suggest that you accept my financing line. Zhou Qiang said.

"Dong Zhou, you are the boss of the company, even if several of your companies ask for money, you can't suppress them?" Zhao Liya asked rhetorically.

"I started in real estate, if the real estate company uses money, I will definitely give it, the old bank can't lose it; some time ago, I invested in a cinema company, I am the world's largest cinema company, the cinema needs money, I have to give; not long ago, I opened a diamond company, the chairman is my girlfriend, she wants money, can I refuse?" Zhou Qiang said.

"But one billion is indeed a bit much for the company at the moment. Wang Zhenyu said.

"That's 800 million. Zhou Qiang said.

Wang Zhenyu hesitated: "Let's go back and discuss." ”

Money is a good thing, and they want it too.

But there is no free lunch in the world, and if you take Zhou Qiang's 800 million, Zhou Qiang will be able to account for 32% and suddenly become the company's largest shareholder.

This is still the first round of funding, and they will definitely need to continue to raise money in the future, and if the amount of financing is too much, they may lose control of the company.

"I won't interfere in the management of the company, and you still have the final say. Zhou Qiang said with relief.

Wang Zhenyu sighed, in fact, from the day they started their business, they thought that there would be this day.