The importance and challenges of 1. due diligence

Due diligence refers to the investor's comprehensive, objective and accurate investigation and evaluation of the financial, legal, commercial, technical, environmental and other aspects of the investment target before making major decisions such as investment, mergers and acquisitions, and listing, in order to determine the true value of the investment target, Existing risks and future potential, so as to provide basis and guarantee for investment decisions. The importance of due diligence is self-evident, it can help investors:

-Understand the internal situation of the investment target, find potential problems and risks, avoid blind investment, reduce investment costs and losses;

-Assess the market position, competitive advantages and development prospects of the investment target, and determine the reasonable investment price and return expectation;

-Develop investment strategies, determine investment methods, terms, conditions, terms, etc., to provide a basis for the signing of investment agreements;

-Provide reference for post-investment management and supervision, and formulate effective risk control and value creation measures to achieve investment goals.

The process and results of due diligence have a direct impact on the success of the investment, so investors need to choose a professional, reliable and appropriate due diligence agency to ensure the quality and effectiveness of due diligence. However, choosing a due diligence agency is not an easy task, and investors need to face the following challenges:

-The number and quality of due diligence agencies are uneven. How to identify the qualifications, reputation, capabilities, experience, etc. of the agencies and find the most suitable partner?

-The scope and depth of due diligence needs to be flexibly adjusted according to the characteristics of the investment target and the needs of the investor, how to develop a reasonable due diligence program to avoid excessive or insufficient?

-The process of due diligence involves multi-party communication and collaboration. How to ensure the timely, accurate and complete acquisition and transmission of information to avoid distortion, leakage and lag of information?

-The results of due diligence need to be presented objectively, impartially and professionally, how to effectively analyze, explain and present the findings and conclusions of due diligence to provide strong support for investment decisions?

In response to these challenges, investors need to find an organization that can provide comprehensive, customized, efficient, and high-quality due diligence services, and Champ Consulting is such an organization.

Advantages and Characteristics of 2. Champ Consulting

Shangpu Consulting Group Co., Ltd. (hereinafter referred to as "Shangpu Consulting"), with registered capital of 50 million, was founded in early 2008. After more than ten years of hard work, Shangpu Consulting has accumulated rich professional experience and customer resources in the fields of industry research, market research, investment and financing consulting, and IPO listing consulting. With strong consulting innovation capabilities, first-class service quality, and Strong market competitiveness is highly recognized by all sectors of society, and has now become one of the most leading and authoritative independent third-party research and investment and financing consulting institutions in China.

Champ Consulting has the following advantages and characteristics in the field of due diligence:

-Professional team and ability. Shangpu Consulting has a professional team composed of senior industry experts, financial analysts, legal advisers, technical experts, etc., which can conduct in-depth investigation and evaluation of investment targets from multiple dimensions, multiple angles and multiple levels, and provide investors with Comprehensive, objective and accurate due diligence reports. Shangpu Consulting also has strong data support and analysis capabilities, and can use self-developed databases and models to effectively collect, organize, analyze, and interpret the financial, legal, commercial, technical, and environmental data of the investment target. Provide investors with valuable insights and suggestions.

-Customized services and programs. According to the different needs of investors and the different characteristics of the investment target, Shangpu Consulting can formulate a reasonable due diligence plan, determine the scope and depth of due diligence, avoid excessive or insufficient, and save time and cost. Champu Consulting is also able to customize the form and structure of the due diligence report according to the different preferences and styles of investors to ensure that the report is clear, understandable and convincing.

-Efficient process and management. Champ Consulting has a sound due diligence process and management mechanism to ensure the smooth and timely completion of due diligence. Before due diligence, Shangpu Consulting will fully communicate and coordinate with investors, clarify the purpose, content, method, time, etc. of due diligence, and formulate a detailed work plan and division of labor; in due diligence, it will cooperate with the investment target and Relevant parties maintain good communication and cooperation, obtain and transmit information in a timely manner, and avoid distortion, leakage, and lag of information; after due diligence, due diligence reports will be submitted to the investor in a timely manner and necessary modifications and additions will be made based on the investor's feedback.

-Extensive experience and resources. Shangpu Consulting has rich experience and resources in the field of due diligence, and has provided high-quality due diligence services for many investors in many industries and fields. The investment targets involved include domestic and foreign listed companies, private enterprises, state-owned enterprises, and startups. Companies, projects, etc., the investment amount involved ranges from several million to several billion, the investment methods involved include equity investment, debt investment, mergers and acquisitions, IPO listing, etc., and the industries and fields involved include the Internet, finance, manufacturing, energy, medical care, education, culture, real estate, etc. Shangpu Consulting has in-depth industry research and market research in various industries and fields, and has a wide range of industry resources and network of contacts, which can provide investors with the latest, most complete and most professional industry information and market trends.

3. the classic case of Champ Consulting.

In order to better demonstrate the advantages and characteristics of Champ Consulting in the field of due diligence, as well as the experiences and lessons learned from it, this paper selects several classic due diligence cases in which Champ Consulting participated for analysis, namely:

-An international fund's equity investment in a well-known Chinese Internet company;

-A domestic listed company's merger and acquisition of a high-tech company in the United States;

-A domestic private enterprise's debt investment in an educational institution in Singapore;

-A domestic start-up company makes due diligence on the IPO listing of a Hong Kong cultural company.

1. An international fund's equity investment in a well-known Chinese Internet company.

-Investor: An international fund is a venture capital fund focusing on the Internet, e-commerce, mobile Internet and other fields. It manages more than US $10 billion and has invested in well-known Internet companies such as Facebook, Twitter, and Airbnb;

-Investment target: A well-known Internet company in China is an Internet platform that provides diversified content services such as online video, music, games, and social networking. It has more than 0.5 billion monthly active users and is one of the largest video websites in China;

-Investment amount: US $0.1 billion, accounting for 5% of the equity of the investment target;

-Investment method: equity investment, the purchase of newly issued shares of the investment target in cash;

-The purpose of due diligence: to assess the business model, market position, competitive advantage, development prospects, financial situation, legal risks, etc. of the investment target, to determine the reasonable valuation of the investment target, and to provide a basis for investment decision-making;

-Content of due diligence: Champ Consulting provides investors with due diligence services in the following areas:

-Commercial due diligence: a comprehensive investigation and analysis of the business model, products and services, users and traffic, market size and share, competitive landscape and advantages, profit models and channels, development strategies and plans of the investment target, etc., to provide investors with an assessment of the commercial value and potential of the investment target;

-Financial due diligence: a detailed review and evaluation of the financial statements, financial indicators, financial policies, financial management, financial risks, etc. of the subject matter of the investment, providing investors with an analysis of the financial position and financial forecasts of the subject matter of the investment;

-Legal due diligence: the legal structure, legal documents, legal contracts, legal disputes, legal compliance, etc. of the investment target are strictly inspected and evaluated, and the investors are provided with suggestions on the legal risks and legal protection of the investment target;

-Technical due diligence: conducted an in-depth investigation and evaluation of the technical team, technical architecture, technical platform, technical innovation, technical security, etc. of the investment target, providing investors with an understanding of the technical capabilities and technical advantages of the investment target;

-Environmental due diligence: A comprehensive investigation and analysis of the industry environment, market environment, policy environment, and social environment of the investment target is conducted, providing investors with a judgment of the external opportunities and threats of the investment target.

-The result of due diligence: Shangpu Consulting has submitted a detailed due diligence report for the investor, which systematically presents and evaluates all aspects of the investment target, clearly combs and compares the advantages and disadvantages of the investment target, and reasonably estimates and controls the value and risk of the investment target, the investment strategy and terms of the investors put forward useful suggestions and opinions. The main conclusions of the report are as follows:

-The investment target is an Internet company with a strong business model, market position, competitive advantage, and development prospects. It has a huge user base, rich content resources, advanced technology platform, stable financial status, and compliant legal framework. It is a high-quality enterprise worth investing in;

-The main advantages of the investment target are its leading position in the video field, diversified layout in the music and game fields, innovative breakthroughs in the social field, and excellent capabilities in user operation and business realization. These advantages enable the investment target to Maintain growth and profitability in the fierce competition, while also providing more development space and opportunities for the investment target;

-The main disadvantages of the investment target are its higher cost in content production and copyright acquisition, less investment in technological innovation and security, greater exposure to legal disputes and compliance risks, and higher uncertainty in the market environment and policy environment. These disadvantages may affect the long-term competitiveness and sustainability of the investment target, At the same time, it also brings certain investment risks to investors;

-The reasonable valuation of the investment target is US $2 billion. According to the investment amount and equity ratio, the investor can obtain 5% equity of the investment target, and the return on investment is expected to be 25%;

-The investor's investment strategy and terms should consider the following points: First, establish a good cooperative relationship with the investment target, share resources and information, support the development strategy and plan of the investment target, and enhance the market competitiveness and brand influence of the investment target; The second is to sign a reasonable investment agreement with the investment target to clarify the purpose, conditions, terms, rights, obligations, risks, and exit of the investment, the third is to effectively manage and supervise the investment target, regularly obtain and evaluate the operation and financial data of the investment target, timely discover and solve the problems and risks of the investment target, and realize the value creation and value realization of the investment.

-Experience and lessons of due diligence: In the process of providing due diligence services to investors, Champ Consulting has accumulated the following experiences and lessons:

-In terms of business due diligence, Shangpu Consulting has made full use of its deep accumulation and extensive resources in the Internet industry to conduct a comprehensive assessment of the business model and market position of the investment target, and also paid attention to the competitors and potential of the investment target. The analysis of threats provides investors with an objective and comprehensive business perspective;

-In terms of financial due diligence, Shangpu Consulting has used its own professional capabilities and data analysis capabilities to conduct a detailed review and evaluation of the financial data of the investment target, and also paid attention to the rationality of the financial forecast and valuation of the investment target. And the reliability test provides investors with an accurate and professional financial perspective;

-In terms of legal due diligence, Champ Consulting relies on its own legal team and legal counsel to conduct strict inspection and evaluation of the legal documents and legal risks of the investment target, and also pays attention to the legal protection and legal advice of the investment target. The provision provides investors with a safe and compliant legal perspective;

-In terms of technical due diligence, Shangpu Consulting has conducted an in-depth investigation and evaluation of the technical platform and technological innovation of the investment target with the help of its own technical team and technical experts. at the same time, it also pays attention to the understanding of the technical safety and technical advantages of the investment target, providing investors with an advanced and powerful technical perspective;

-In terms of environmental due diligence, Shangpu Consulting has used its own industry research and market research to conduct a comprehensive investigation and analysis of the industry environment and market environment of the investment target, and also paid attention to the external opportunities and opportunities of the investment target. The judgment of threats provides investors with a dynamic and forward-looking environmental perspective.

-The effect and feedback of due diligence: The due diligence report provided by Shangpu Consulting for the investor has been highly recognized and appreciated by the investor. The investor said that the due diligence service of Shangpu Consulting is very professional, comprehensive, efficient and high-quality, which provides strong support and guarantee for the investment decision of the investor. According to the due diligence report of Shangpu Consulting, the investor successfully reached an investment agreement with the investment target, achieved the investment goal and obtained a good return on investment.

2. A domestic listed company's merger and acquisition of a high-tech company in the United States.

-Investor: A domestic listed company is a high-tech company focusing on intelligent manufacturing, intelligent transportation, intelligent security and other fields. It has a number of independent intellectual property rights and core technologies, and is one of the most innovative and competitive intelligent solution providers in China;

-Investment target: a high-tech company in the United States is a high-tech company focusing on artificial intelligence, machine learning, computer vision and other fields. It has a number of international leading technologies and products, and is one of the most influential and promising artificial intelligence companies in the world;

-Investment amount: US $0.5 billion, accounting for 100 per cent of the equity of the investment target;

-Investment methods: mergers and acquisitions, the acquisition of all the shares of the investment target in cash and stock, so that the investment target becomes a wholly-owned subsidiary of the investor;

-The purpose of due diligence: to assess the technical level, product quality, market prospects, financial situation, legal risks, etc. of the investment target, to determine the true value of the investment target, and to provide a basis for M & A decisions;

-Content of due diligence: Champ Consulting provides investors with due diligence services in the following areas:

-Technical due diligence: conducted an in-depth investigation and evaluation of the technical team, technical architecture, technical platform, technical innovation, technical security, etc. of the investment target, providing investors with an understanding of the technical capabilities and technical advantages of the investment target;

-Product due diligence: a comprehensive investigation and analysis of the product design, product function, product performance, product quality, product market, etc. of the investment target, providing investors with an assessment of the product value and potential of the investment target;

-Market due diligence: a comprehensive investigation and analysis of the industry environment, market environment, competitive environment and customer environment in which the investment target is located, providing investors with a judgment on the market opportunities and threats of the investment target;

-Financial due diligence: a detailed review and evaluation of the financial statements, financial indicators, financial policies, financial management, financial risks, etc. of the subject matter of the investment, providing investors with an analysis of the financial position and financial forecasts of the subject matter of the investment;

-Legal due diligence: The legal structure, legal documents, legal contracts, legal disputes, legal compliance, etc. of the investment target are strictly inspected and evaluated, and the investors are provided with suggestions on the legal risks and legal protection of the investment target.

-The result of due diligence: Shangpu Consulting has submitted a detailed due diligence report for the investor, which systematically presents and evaluates all aspects of the investment target, clearly combs and compares the advantages and disadvantages of the investment target, and reasonably estimates and controls the value and risk of the investment target, the investor's M & A strategy and terms put forward useful suggestions and comments. The main conclusions of the report are as follows:

-The investment target is a high-tech company with strong technical level, product quality and market prospect, with a number of international leading technologies and products, one of the most influential and promising artificial intelligence companies in the world, and a high-quality enterprise worthy of merger and acquisition;

-The main advantages of the investment target lie in its outstanding performance in core technologies, innovation capabilities, number of patents, technology platforms, technical security, etc. in the fields of artificial intelligence, machine learning, computer vision, etc. These advantages enable the investment target to develop high-performance, High-quality, high-value products, but also provide more possibilities for technological innovation and technological transformation for the investment target;

-The main disadvantages of the investment target are its limitations in product market and customer base, instability in financial status and profitability, uncertainty in legal disputes and compliance risks, and market environment and The uncontrollability of the competitive environment may affect the long-term development and sustainability of the investment target, and also bring certain M & A risks to investors;

-The reasonable valuation of the investment target is US $0.6 billion. According to the investment amount and equity ratio, the investor can acquire all the equity of the investment target and realize complete control over the investment target. The return on investment is expected to be 20%;

-The investor's M & A strategy and terms should consider the following points: First, establish good communication and trust with the investment target, eliminate the concerns and conflicts of the investment target, reach a consensus and willingness to M & A, and promote the smooth progress of M & A; Second, sign a reasonable M & A agreement with the investment target to clarify the purpose, conditions, terms, rights, obligations, risks, integration, etc. of the M & A to protect the legitimate rights and interests of the investor; the third is to effectively integrate and manage the investment target, retain the technical team and technical advantages of the investment target, realize the complementarity and synergy of the technology and products of the investor and the investment target, and enhance the market competitiveness and brand influence of the investor.

-Experience and lessons of due diligence: In the process of providing due diligence services to investors, Champ Consulting has accumulated the following experiences and lessons:

-In terms of technical due diligence, Shangpu Consulting has made full use of its professional knowledge and technical resources in the high-tech field, conducted an in-depth evaluation of the technical level and technical advantages of the investment target, and also paid attention to the technological innovation of the investment target. And the possibility and prospect of technological transformation, providing investors with a comprehensive and forward-looking technical perspective;

-In terms of product due diligence, Shangpu Consulting has made full use of its rich experience and extensive resources in the fields of intelligent manufacturing, intelligent transportation, intelligent security, etc., and conducted a comprehensive investigation and analysis of the product design and product functions of the investment target. It also paid attention to the testing and evaluation of the product performance and product quality of the investment target, providing investors with an efficient and high-quality product perspective;

-In terms of market due diligence, Shangpu Consulting has made full use of its own industry research and market research to conduct a comprehensive investigation and analysis of the industry environment and market environment in which the investment target is located. At the same time, it also pays attention to the competitive environment of the investment target. The understanding and evaluation of the customer environment provide investors with a dynamic and practical market perspective;

-In terms of financial due diligence, Shangpu Consulting has used its own professional capabilities and data analysis capabilities to conduct a detailed review and evaluation of the financial data of the investment target, and also paid attention to the rationality of the financial forecast and valuation of the investment target. And the reliability test provides investors with an accurate and professional financial perspective;

-In terms of legal due diligence, Champ Consulting relies on its own legal team and legal advisers to strictly inspect and evaluate the legal documents and legal risks of the investment target. At the same time, it also pays attention to the legal protection of the investment target and the provision of legal advice, providing investors with a safe and compliant legal perspective.

-The effect and feedback of due diligence: The due diligence report provided by Shangpu Consulting for the investor has been highly recognized and appreciated by the investor. The investor said that the due diligence service of Shangpu Consulting is very professional, comprehensive, efficient and high-quality, which provides strong support and guarantee for the investor's M & A decision. According to the due diligence report of Shangpu Consulting, the investor successfully reached a merger agreement with the investment target, achieved the merger goal, and improved the investor's technical level and market competitiveness.

3. A domestic private enterprise's debt investment in an educational institution in Singapore.

-Investor: A domestic private enterprise is an educational institution focusing on online education, vocational training, education consulting and other fields. It has many well-known online education platforms and vocational training brands, and is one of the largest online education providers in China;

-Investment target: an educational institution in Singapore, which focuses on overseas study, language training, cultural exchange and other fields, has a number of high-quality overseas partners and projects, and is one of the most popular service providers for studying abroad in Singapore;

-Investment amount: $50 million, or 100 per cent of the claims of the subject of the investment;

-Investment mode: creditor's rights investment, the purchase of the creditor's rights of the investment object in cash, and the right to the debt repayment and interest income of the investment object;

-The purpose of due diligence: to assess the operating status, financial situation, debt status, solvency, legal risk, etc. of the investment target, to determine the value of the investment target's claims, and to provide a basis for investment decision-making;

-Content of due diligence: Champ Consulting provides investors with due diligence services in the following areas:

-Business due diligence: a comprehensive investigation and analysis of the business model, business strategy, business management, business effectiveness, business risks, etc. of the investment target has been conducted, providing investors with an assessment of the business value and potential of the investment target;

-Financial due diligence: a detailed review and evaluation of the financial statements, financial indicators, financial policies, financial management, financial risks, etc. of the subject matter of the investment, providing investors with an analysis of the financial position and financial forecasts of the subject matter of the investment;

-Debt due diligence: the source of debt, debt amount, debt maturity, debt interest rate, debt guarantee, debt repayment, etc. of the investment target are strictly checked and evaluated, and the investor is provided with an analysis of the debt status and debt value of the investment target;

-Debt service due diligence: an in-depth investigation and assessment of the solvency, willingness to repay, debt service plan, debt service guarantee, etc. of the subject matter of the investment, providing investors with recommendations on the risk of debt service and debt service guarantee of the subject matter of the investment;

-Legal due diligence: The legal structure, legal documents, legal contracts, legal disputes, legal compliance, etc. of the investment target are strictly inspected and evaluated, and the investors are provided with suggestions on the legal risks and legal protection of the investment target.

-The result of due diligence: Shangpu Consulting has submitted a detailed due diligence report for the investor, which systematically presents and evaluates all aspects of the investment target, clearly combs and compares the advantages and disadvantages of the investment target, and reasonably estimates and controls the creditor's rights value and risk of the investment target, the investment strategy and terms of the investors put forward useful suggestions and opinions. The main conclusions of the report are as follows:

-The investment target is an educational institution with strong business model, business effects, and business prospects. It has multiple high-quality overseas partners and projects. It is one of the most popular service providers for studying abroad in Singapore and is a worthy investment. High-quality enterprise;

-The main advantage of the investment target lies in its outstanding performance in the fields of overseas study, language training, cultural exchange, professional knowledge, professional team, professional service, professional brand, etc. These advantages enable the investment target to attract and retain a large number of students and customers, and also provide more business space and opportunities for the investment target;

-The main disadvantages of the investment target are its instability in terms of financial status and profitability, deficiencies in debt status and solvency, uncertainty in legal disputes and compliance risks, and market environment. And the uncontrollability of the competitive environment, these disadvantages may affect the long-term development and sustainability of the investment target, and also bring certain investment risks to investors;

-The claim on the subject of the investment is reasonably valued at $60 million and, depending on the amount of the investment and the proportion of the claim, the investor may purchase all the claims on the subject of the investment and enjoy the right to debt repayment and interest income from the subject of the investment, with an estimated return on investment of 20 per cent;

-The investor's investment strategy and terms should consider the following points: First, establish a good cooperative relationship with the investment target, share resources and information, support the business development and financial improvement of the investment target, and improve the operating efficiency and solvency of the investment target; The second is to sign a reasonable creditor's rights transfer agreement with the investment target to clarify the source, amount, term, interest rate, guarantee, repayment, etc. of the creditor's rights, the third is to effectively supervise and manage the investment target, regularly obtain and evaluate the operation and financial data of the investment target, timely discover and solve the problems and risks of the investment target, and realize the value creation and value realization of the investment.

-Experience and lessons of due diligence: In the process of providing due diligence services to investors, Champ Consulting has accumulated the following experiences and lessons:

-In terms of business due diligence, Shangpu Consulting has made full use of its professional knowledge and industry resources in the education industry to conduct a comprehensive evaluation of the business model and business effects of the investment target, and also paid attention to the business risks and risks of the investment target. The analysis of business prospects provides investors with an objective and comprehensive business perspective;

-In terms of financial due diligence, Shangpu Consulting has used its own professional capabilities and data analysis capabilities to conduct a detailed review and evaluation of the financial data of the investment target, and also paid attention to the rationality of the financial forecast and valuation of the investment target. And the reliability test provides investors with an accurate and professional financial perspective;

-In terms of debt due diligence, Champ Consulting has relied on its own financial team and financial advisors to conduct strict inspections and evaluations of the source and value of the debt of the investment target, and also paid attention to the debt guarantee and debt repayment of the investment target. The guarantees and recommendations provide investors with a safe and favorable debt perspective;

-In terms of debt repayment due diligence, Shangpu Consulting has used its own experience and resources to conduct an in-depth investigation and evaluation of the solvency and willingness of the investment target. At the same time, it also pays attention to the debt repayment plan and The formulation and provision of debt repayment guarantees provide investors with an effective and guaranteed debt repayment perspective;

-In terms of legal due diligence, Champ Consulting relies on its own legal team and legal advisers to strictly inspect and evaluate the legal documents and legal risks of the investment target. At the same time, it also pays attention to the legal protection of the investment target and the provision of legal advice, providing investors with a safe and compliant legal perspective.

-The effect and feedback of due diligence: The due diligence report provided by Shangpu Consulting for the investor has been highly recognized and appreciated by the investor. The investor said that the due diligence service of Shangpu Consulting is very professional, comprehensive, efficient and high-quality, which provides strong support and guarantee for the investment decision of the investor. According to the due diligence report of Shangpu Consulting, the investor successfully reached a debt transfer agreement with the investment target, achieved the investment goal, and obtained a good return on investment.

4. A domestic start-up company makes due efforts to the IPO of a cultural company in Hong Kong.

-Investor: A domestic start-up company is a cultural company focusing on online literature, animation games, film and television dramas and other fields. It has a number of well-known online literature platforms and animation game brands. It is one of the most dynamic and potential cultural and creative enterprises in China;

-Investment target: a cultural company in Hong Kong, which is a cultural company focusing on film and television production, distribution, publicity and other fields, has a number of excellent film and television works and film and television talents, and is one of the most powerful and influential film and television companies in Hong Kong;

-Investment amount: US $10 million, accounting for 10% of the equity of the investment target;

-Investment method: IPO listing, cash purchase of newly issued shares of the investment target, so that the investment target is listed on the main board of the Hong Kong Stock Exchange;

-The purpose of due diligence: to assess the operating status, financial situation, legal risks, listing conditions, listing effect, etc. of the investment target, to determine the listing value of the investment target, and to provide a basis for investment decision-making;

-Content of due diligence: Champ Consulting provides investors with due diligence services in the following areas:

-Business due diligence: a comprehensive investigation and analysis of the business model, business strategy, business management, business effectiveness, business risks, etc. of the investment target has been conducted, providing investors with an assessment of the business value and potential of the investment target;

-Financial due diligence: a detailed review and evaluation of the financial statements, financial indicators, financial policies, financial management, financial risks, etc. of the subject matter of the investment, providing investors with an analysis of the financial position and financial forecasts of the subject matter of the investment;

-Legal due diligence: the legal structure, legal documents, legal contracts, legal disputes, legal compliance, etc. of the investment target are strictly inspected and evaluated, and the investors are provided with suggestions on the legal risks and legal protection of the investment target;

-Listing due diligence: an in-depth investigation and evaluation of the listing conditions, listing procedures, listing fees and listing effects of the investment target, providing investors with an analysis of the listing feasibility and listing benefits of the investment target;

-Investment due diligence: A comprehensive investigation and analysis of the investment value, investment risk, investment return, investment strategy, investment terms, etc. of the investment target is conducted, providing investors with an analysis of the investment feasibility and investment recommendations of the investment target.

-The result of due diligence: Shangpu Consulting has submitted a detailed due diligence report for the investor. The report systematically presents and evaluates all aspects of the investment target, clearly sorts out and compares the advantages and disadvantages of the investment target, and reasonably estimates and controls the listing value and risk of the investment target, the investment strategy and terms of the investors put forward useful suggestions and opinions. The main conclusions of the report are as follows:

-The investment target is a cultural company with a strong business model, business results, and business prospects. It has a number of outstanding film and television works and film and television talents. It is one of the most powerful and influential film and television companies in Hong Kong, and it is a worthy listing. High-quality enterprise;

-The main advantage of the investment target lies in its outstanding performance in the fields of film and television production, distribution, publicity, professional team, professional service, professional brand, etc. These advantages enable the investment target to create high-high quality, high-viewing and high-reputation film and television works, and also provide more possibilities for film and television creation and film and television cooperation for the investment target;

-The main disadvantages of the investment target are the instability of its financial status and profitability, the uncertainty of legal disputes and compliance risks, and the uncontrollability of the market environment and competitive environment. These disadvantages may affect the long-term development and sustainability of the investment target, and at the same time bring certain listing risks to investors;

-The reasonable valuation of the listing of the investment target is US $0.12 billion. According to the investment amount and equity ratio, the investor can purchase 10% of the equity of the investment target, so that the investment target can be listed on the main board of the Hong Kong Stock Exchange, and the return on investment is expected to be 30%;

-The investor's investment strategy and terms should consider the following points: First, establish a good cooperative relationship with the investment target, share resources and information, support the listing preparation and listing promotion of the investment target, and enhance the listing effect and listing value of the investment target; The second is to sign a reasonable investment agreement with the investment target to clarify the purpose, conditions, terms, rights, obligations, risks, and exit of the investment, the third is to effectively manage and supervise the investment target, regularly obtain and evaluate the operation and financial data of the investment target, timely discover and solve the problems and risks of the investment target, and realize the value creation and value realization of the investment.

-Experience and lessons of due diligence: In the process of providing due diligence services to investors, Champ Consulting has accumulated the following experiences and lessons:

-In terms of business due diligence, Shangpu Consulting has made full use of its professional knowledge and industry resources in the cultural industry to conduct a comprehensive evaluation of the business model and business effects of the investment target, and also paid attention to the business risks and risks of the investment target. The analysis of business prospects provides investors with an objective and comprehensive business perspective;

-In terms of financial due diligence, Shangpu Consulting has used its own professional capabilities and data analysis capabilities to conduct a detailed review and evaluation of the financial data of the investment target, and also paid attention to the rationality of the financial forecast and valuation of the investment target. And the reliability test provides investors with an accurate and professional financial perspective;

-In terms of legal due diligence, Champ Consulting relies on its own legal team and legal counsel to conduct strict inspection and evaluation of the legal documents and legal risks of the investment target, and also pays attention to the legal protection and legal advice of the investment target. The provision provides investors with a safe and compliant legal perspective;

-In terms of listing due diligence, Shangpu Consulting has used its own experience and resources to conduct an in-depth evaluation of the listing conditions and listing effects of the investment target. At the same time, it has also paid attention to the mastery and optimization of the listing procedures and listing fees of the investment target, providing investors with a feasible and favorable listing perspective;

-In terms of investment due diligence, Shangpu Consulting has used its own professional knowledge and investment resources to conduct a comprehensive analysis of the investment value and investment risks of the investment target. At the same time, it also pays attention to the formulation and provision of the investment strategy and investment terms of the investor, providing an effective and guaranteed investment perspective for the investor.

-The effect and feedback of due diligence: The due diligence report provided by Shangpu Consulting for the investor has been highly recognized and appreciated by the investor. The investor said that the due diligence service of Shangpu Consulting is very professional, comprehensive, efficient and high-quality, which provides strong support and guarantee for the investment decision of the investor. According to the due diligence report of Shangpu Consulting, the investor successfully reached an investment agreement with the investment target, achieved the investment target, made the investment target listed on the main board of the Hong Kong Stock Exchange, and obtained a good return on investment.

Conclusion

Due diligence is a necessary step before a company makes major decisions such as investment, mergers and acquisitions, and listings. It aims to comprehensively, objectively and accurately assess the value, risk and potential of the investment target. The quality and effectiveness of due diligence directly affects the success of the investment, so choosing a professional, reliable and appropriate due diligence agency is an important issue for investors. Shangpu Consulting is a well-known independent third-party research and investment and financing consulting agency in China, dedicated to providing professional solutions for corporate strategic decision-making.