Becoming Rich with Daily Scavenging APP-Chapter 646: Based on the Post-Recall Valuation?

After finishing the conversation with Zhu Li, Chen Yiyang returned to his office and was about to instruct his subordinates to turn down Anke's side.

After all, Anke's attempt to seek investment this time was obviously trying to pull him into a trap to help Anke overcome this crisis.

But just as Chen Yiyang was about to make the call.

He carefully thought over all the information about the situation and suddenly had some different ideas.

So instead of rushing to respond to Anke, he asked his assistant to help gather information on the financial status of several major power bank companies in the market.

The information was quickly collected, organized, and sent to Chen Yiyang.

Chen Yiyang carefully reviewed the collected materials and discovered something rather interesting.

The company Muma Shi, which holds the largest market share and can be called the leader in the domestic power bank market, actually has the worst financial status.

The other two major companies, Rice, backed by its parent company, is financially robust. Even if they were to recall a batch of power banks, or even all sold power banks, Rice would not face any financial crisis.

Anke, on the other hand, had previously profited a lot from selling mid-to-high-end power banks, and coupled with the recent development of many new products, its foundation is comparatively solid.

If many power banks were recalled, although there's still a risk of bankruptcy, they could still save themselves with external funds.

In contrast, the leader Muma Shi has a very poor financial situation, just surviving is quite an achievement.

Because back in 2011, Muma Shi was just a battery OEM in the domestic market.

It was only with the explosion of smartphones that Muma Shi began to shift to power banks, and by leveraging a low-price strategy, it managed to achieve a single-day sales breakthrough of twenty million, becoming the number one power bank company in the country.

Although it has held this number one position for over ten years, it has always relied on a strategy of low prices, high volume, and brand development.

In other words, Muma Shi is essentially a low-cost big brand company.

Nominally a big-name company, but its profit margin might not even be as high as some no-name companies.

Therefore, Muma Shi heavily relies on low-cost raw material supplies, allowing some low-cost suppliers to reverse the threat of Muma Shi, the principal.

Because Muma Shi has been pressuring raw material suppliers too harshly, there are only a handful of suppliers in the market that can meet their price requirements.

Of course, Muma Shi is fully aware of this situation.

So in recent years, they have been actively seeking transformation, trying to break into the mid-to-high-end market.

For this reason, they have established R&D centers abroad in Berlin and Silicon Valley, hoping to enter the foreign market on one hand, and develop exclusive technology on the other.

But this has further strained Muma Shi's finances.

Even the outside world is now aware that Muma Shi is extremely short on cash.

But as long as Muma Shi remains the leading power bank company domestically, they can survive by dismantling and delaying payments to suppliers.

After understanding all these situations.

Chen Yiyang called his assistant and asked the assistant to contact Anke's president, Yang Meng, hoping Yang Meng could come to Lin'an for a discussion about the investment.

A few days later, Yang Meng flew to Lin'an and met with Chen Yiyang in the conference room.

"Mr. Yang." Chen Yiyang proactively shook hands with Yang Meng, making Yang Meng feel somewhat flattered.

After all, Anke was the one seeking investment from Chen Yiyang, so logically, Yang Meng should be the one who needs Chen Yiyang.

But now Chen Yiyang's attitude made Yang Meng a bit uneasy.

Because Chen Yiyang's friendly demeanor might imply that what he is about to say will not be so friendly.

After they sat down, Chen Yiyang first spoke, "Mr. Yang, please tell me how you hope I will invest in you."

"It's like this." Yang Meng came prepared.

He immediately presented a lot of Anke's data and emphasized Anke's development in overseas markets and expansion in many new fields, especially in the charging equipment sector.

To sum up.

Anke doesn't require much financial investment from Chen Yiyang, but they have a significant need for Chen Yiyang's international connections and channels.

"If Mr. Chen is willing to invest in Anke, we are willing to sell about five percent of shares to you based on the market value."

Anke's market value had risen to over seventy billion at its peak.

Although it has slightly fallen back, it's still around fifty billion.

A company with such a promising future would definitely have to be purchased at a premium if you want to buy a large number of shares.

At least at a premium of twenty to thirty percent of the market value.

If there's a special situation or a competitor targeting directly, it could even premium over fifty percent.

Therefore, offering Chen Yiyang a portion of shares at market value could be considered a very generous condition.

Of course, all of this is premised on the recall issue being exposed.

Chen Yiyang listened with a smile on his face, taking a sip of water.

Once the room was silent, he slowly began to speak.

"I wonder if the market value Mr. Yang mentioned refers to Anke's current market value.

Or the market value after Anke announces a global recall of power banks."

Chen Yiyang's words made the already silent conference room even quieter.

The high-ranking officials and assistants accompanying Yang Meng to the conference room.

At this moment, they didn't even dare to blink, fearing any sound might escape.

Yang Meng also temporarily lost his ability to think.

No matter what, he couldn't figure out where Chen Yiyang obtained this information.

After his brain paused for quite a while, Yang Meng slowly began to speak, "What do you mean by that?"

"The issue with Anpu Rui Si's battery cells, Mr. Yang, how much longer do you think it will be before it explodes?"

Chen Yiyang continued to speak.

Yang Meng's lingering hope was completely crushed.

He now confirmed that Chen Yiyang had already learned about the pending issue with Anpu Rui Si's battery cells through other channels.

This also meant that he was already aware of the imminent recall of power banks from the major domestic companies.

Once the recall begins, compensation effectively has a basis.

In the domestic market, it's okay since collective lawsuits for compensation are not supported, so it can still be delayed.

But Anke's primary market is overseas, and if a collective lawsuit occurs, the compensation amount would not be insignificant.

Faced with such a huge pitfall, Yang Meng's previous boast about Anke's accomplishments overseas became meaningless.

Because the better their overseas performance, the more they would have to recall, and the greater the amount of compensation.

Yang Meng fell silent for a moment.

He even had the urge to turn and leave immediately.

But Chen Yiyang remained motionless after speaking.

Which gave Yang Meng ample time to think.

Why did Chen Yiyang, who already knew about the impending power bank issue in the country, still invite him to Lin'an for a face-to-face discussion?

Could it be to personally humiliate him? 𝚏𝕣𝕖𝚎𝚠𝚎𝚋𝚗𝐨𝐯𝕖𝕝.𝕔𝐨𝕞

Such a young tycoon couldn't be that childish, right?