The asset-liability ratios are 60%, 55%, and 50% respectively, showing a downward trend, which indicates that the company’s financial risks are decreasing.
Both the current ratio and the quick ratio are above 1, suggesting the company’s short-term debt repaynt ability is good.
"Net cash flow from operating activities turned positive last year, reaching 50 million, which is a positive sign, showing that the company’s main business is beginning to generate positive cash flow."
Chen Cheng said slowly: "The net cash flow from investnt activities is negative, perhaps mainly due to the company’s continued investnt in research and developnt and capacity expansion?"
Wang Tenghui did not expect the young man in front of him to understand the financial report so quickly, but upon reflection, since he could establish Dili Private Equity and unite nine institutions in Beijing to form an alliance, there must be more than just connections—there’s strength as well.
"Mr. Chen indeed has a sharp eye!"
Wang Tenghui praised, "That’s right. We at Xin Neng have always regarded technology developnt and capacity expansion as core strategies for growth, so we have invested a lot in these areas."
Chen Cheng nodded and continued to peruse the report, his eyes settling on the net cash flow from financing activities.
"The net cash flow from financing activities is positive, mainly relying on equity financing, which indicates that the company still needs external funding support for developnt."
"Yes," Wang Tenghui said frankly, "The developnt of solid-state battery technology and construction of production lines require significant financial input. We hope to introduce strategic investors to jointly promote the rapid developnt of Xin Neng Battery."
Chen Cheng closed the report, "So, Dili is here."
Wang Tenghui’s eyes shone; money for a tech startup like this is a blessing in disguise during hard tis.
However, for Chen Cheng, money is the least of his concerns.
"Mr. Chen, the dostic power battery market is fiercely competitive, with industry giants like BYD and CATL, as well as so erging solid-state battery research enterprises. Our advantage at Xin Neng lies in the leading solid-state battery technology and cost control capabilities, but our shortcomings are in the small scale of production capacity and low brand recognition."
"Therefore, if you can invest in us at Xin Neng, I believe we will offer you a great return."
Chen Cheng leaned back in his chair, looking at the competitive landscape of the dostic power battery market on the PPT, asked: "How much are you planning to raise in this round of financing?"
Wang Tenghui pondered for a mont and said, "Mr. Chen, we plan to raise 1 billion this ti, for expanding production lines, increasing research and developnt input, and promoting our market."
Chen Cheng nodded. A 1 billion financing scale for a company like Xin Neng Battery is no small feat, but it aligns with its developnt plan and market expectations.
He tapped his fingers lightly on the table, contemplating the investnt strategy of Dili Private Equity.
"Mr. Wang," Chen Cheng said, "1 billion isn’t a small sum, so how much equity are you offering for it?"
Wang Tenghui was prepared, he adjusted his glasses and responded earnestly:
"Mr. Chen, we plan to offer 35% equity. This decision is made after careful consideration, on one hand taking into account the company’s current valuation, and on the other hand hoping to provide investors with enough equity returns to attract quality capital injection."
Chen Cheng raised his eyebrows and further asked: "Mr. Wang, I’m curious about how voting rights corresponding to this 35% equity are arranged?"
Wang Tenghui replied: "Mr. Chen, we can offer a ’sa shares, sa rights’ arrangent for investors.
That is, Dili Private Equity as a shareholder will have corresponding voting rights according to its shareholding proportion, participating in major company decisions, including but not limited to strategic planning, financial budgets, appointnts, and removals of senior managent.
Of course, we also hope investors will respect the existing managent team and operating model of the company, so everyone can contribute ideas to the developnt of Xin Neng Battery."
"And if the company goes through refinancing or other capital operations in the future, how will the interests of existing shareholders be protected? Like the issue of equity dilution."
"In this regard, we will explicitly include relevant terms in the investnt agreent. If refinancing occurs, existing shareholders will have preemptive rights to subscribe, ensuring that their equity proportions are not excessively diluted.
Moreover, we’ll determine reasonable pricing for each refinancing round based on the company’s valuation growth, ensuring each financing brings reasonable returns to shareholders.
For other capital operations, such as rgers and acquisitions, restructuring, etc., these will also undergo review by the board and the general eting of shareholders, fully ensuring shareholders’ right to be inford and decision-making rights."
Chen Cheng listened to this alluring ’sa shares, sa rights’ promise, planning quietly.
The ’sa shares, sa rights’ ans that once Dili invests, Dili will have considerable say in Xin Neng Battery’s decision-making.
He owns 35%, plus the 9.8% held by Wen Shulin, and if Cao Yue’s Jing Qi also ultimately chooses Xin Neng Battery, the combined equity of the three parties will hold significant sway in the company’s decision-making realm.
Chen Cheng pondered for a while and glanced at the distribution map on the PPT, asking a crucial question,
"Mr. Wang, where is your profit point?"
He sat up straight, "I’ve reviewed the materials you’ve presented, it seems to be... in the sectors of new energy vehicle manufacturers and energy storage system integrators, these two areas?"
Wang Tenghui nodded and pointed the laser pen at the screen again,
"One type is new energy vehicle manufacturers, especially those focused on high-end model developnt, the new force car companies. They have very high demands for battery performance and safety, and our solid-state batteries can precisely et their requirents.
The other type is energy storage system integrators. With the global push for renewable energy developnt, the demand for storage markets is rapidly growing. Our solid-state batteries also have substantial advantages in the energy storage field."
Chen Cheng nodded slightly, "This indeed is an example of walking on two legs."
"Yes, Mr. Chen."
Wang Tenghui was confident, "As long as you invest in us at Xin Neng, I believe we will provide a satisfactory answer."
Chen Cheng was in no hurry to agree, as he had another candidate in hand.
"So, Mr. Wang."
He stood up, and Tong Jialu, who hadn’t spoken all along, stood up as well.
"Thank you very much for your detailed presentation today. You have given us a more comprehensive understanding of Xin Neng Battery.
However, a 1 billion investnt is not a trivial amount, we also need to conduct thorough due diligence on your company, including technology developnt, market sales, financial status, and legal compliance.
Only when ensuring all risks are manageable will we make our final investnt decision."
Chen Cheng extended his hand, Wang Tenghui quickly grasped it, "Mr. Chen, that’s expected. We warmly welco you and your team to conduct comprehensive due diligence on us. We will fully cooperate and provide all necessary information and materials. We believe that through this cooperation, Xin Neng Battery will surely usher in faster developnt and bring substantial returns to shareholders."
The two shook hands again, and Chen Cheng said to Tong Jialu: "Xiao Lu, get Mr. Wang’s contact information, we’ll send soone to connect later."
"Okay, Mr. Chen."
Wang Tenghui also called his secretary, and after they exchanged, Wang Tenghui invited: "Mr. Chen, it’s almost alti, why not have a bite with us here? You can also better understand our corporate culture!"
Chen Cheng smiled and politely declined, "I have matters to attend to back at the company that need my imdiate return. Another ti, we’ll definitely have more opportunities to et."
Wang Tenghui did not insist, smilingly saw them off into the car.
After Tong Jialu drove out of the industrial park, she couldn’t wait to ask: "Husband, just now you said soone would co to connect, who are you sending?"
"You, how about it?" Chen Cheng deliberately asked.
"? I can’t do it." Tong Jialu shook her head repeatedly, "I don’t understand any of the things you talked about, it’s not like the old bond issuance stuff."
"1 billion! That’s no small sum." She sighed.
Chen Cheng laughed heartily, "Even if you wanted to, I wouldn’t let you handle it."
He paused, "I’ll hire soone."
"Hire soone? Dili still hires people?" Tong Jialu asked.
"Of course, unless you think I’m running a shell company?" Chen Cheng teased: "Is it just one boss with plenty of money, an assistant on maternity leave, and a clueless secretary?"
Tong Jialu laughed heartily and then teased: "Then you must give the five insurances and one fund."
"That’s a small matter. I’ll get you a car first."
"Really?"
Chen Cheng turned to look at her, "Yesterday when I bought a car for your sister, those envious little eyes of yours couldn’t fool ."
"I didn’t~"
Tong Jialu denied it, and half a second later, she coquettishly said: "I really want it~"
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