Tech Giants: Starting from Bankrupt Companies

12: Chapter 12: The Placard-Raising Controversy and the Iron Wall DefenseSpark Technology’s year-end financial report was like dropping a nuclear bomb onto the lake of the capital market, stirring up not only waves of astonishment but also the giant crocodiles lurking in the deep water, waiting for their chance.

In a secret trading room in the heart of the bustling city, the atmosphere was a stark contrast to Spark Technology’s booming success. There were no windows here, only cold screens surrounding the room, displaying intricate K-line charts and constantly refreshing trading data. Zhou Tianyu sat in the center, his fingertips gently tapping the mahogany armrest, his eyes as sharp as a hawk’s. On the large screen in front of him was the trend chart of Spark Technology, which was shooting upward at an almost 90-degree angle.

”Boss, the stock price has broken through 18 rmb. Our costs are continuously rising.” A trader reported without turning his head, his voice tinged with nervousness, ”The market’s floating shares are too scarce; even a slightly large buy order easily drives the price up by several percentage points. Currently, through various affiliated accounts, we have cumulatively acquired only 1.8% of the floating shares.”

Zhou Tianyu’s face remained expressionless, and he just gave a faint ”Hmm.” Ever since his two investment proposals were flatly rejected by Su Chen, he had initiated Plan B—secret acquisitions in the secondary market. He had utilized over twenty securities accounts under his control, scattered across the country, breaking down the large order into small ones to cautiously absorb Spark Technology’s stock.

However, Spark Technology’s equity structure was highly concentrated, with Su Chen alone holding 75%, and the market’s floating shares were only around 20%. Coupled with the market’s optimism before the financial report was released, there was a strong reluctance to sell; after the report was released, the stock price hit the daily limit continuously, making it impossible to buy in. Their acquisition progress was extremely slow, and the average cost had already been pushed up to around 18 rmb.

”We can’t wait any longer.” Zhou Tianyu finally spoke, his voice cold, ”The financial report data is too good, and market consensus has formed. If we drag this out, the costs will become unbearable. Launch the ’Hurricane’ plan, spare no expense, and the moment the daily limit opens, buy up the shares regardless of the cost!”

The day after the ”Hurricane” plan was launched, after several consecutive daily limit increases, Spark Technology finally opened up from the daily limit for the first time. The stock price fluctuated violently under the massive selling pressure from profit-taking, but buying interest was equally surging. Just as the battle between bulls and bears was in full swing, several massive buy orders, each exceeding 50 million rmb from different brokerage branches, swept through the sell orders like a hurricane, forcefully sealing the stock price back to the daily limit!

Over the next few trading days, similar situations played out repeatedly. Whenever the stock price showed any signs of loosening, mysterious funds would flood in, forcefully using money to pile the stock price up. The market was in an uproar, and everyone realized that powerful capital was collecting Spark Technology shares regardless of the cost!

Ultimately, during the frantic process of the stock price hitting a high of 27 rmb, Zhou Tianyu’s side successfully grabbed 5% of Spark Technology’s total share capital at an average cost of about 20 rmb, costing as much as 1.35 billion rmb!

The day after the acquisition was completed, an announcement from the stock exchange exploded across the entire market like a thunderclap:

[Prompt Announcement Regarding Changes in Shareholder Equity of Spark Technology Co., Ltd.]

[”Tianqiong Capital Management Co., Ltd.” and its persons acting in concert have recently increased their holdings of the company’s shares to 50,000,000 shares through centralized bidding transactions in the secondary market, accounting for 5.00% of the company’s total share capital. After this change in equity, the information discloser and its persons acting in concert hold 5.00% of the company’s shares. The information discloser recognizes the long-term investment value of Spark Technology and hopes to grow together with the company. In the future, it does not rule out the possibility of dispatching directors to the company at an appropriate time to participate in corporate governance and better safeguard the rights and interests of all shareholders.]

A buy-in! One of the most sensitive and aggressive signals in the capital market had appeared!

”Tianqiong Capital”? This name was very unfamiliar to the market, but all those with discerning eyes knew that the one standing behind this was the mysterious Zhou Tianyu!

Once the news broke, the interior of Spark Technology instantly entered a state of emergency. In Su Chen’s office, the atmosphere was heavy. Su Chen, Lin Wan, Shen Nanpeng, and Liang Zhen sat around together.

”The 5% buy-in threshold; they have finally revealed their true intentions.” Shen Nanpeng adjusted his glasses and analyzed calmly, ”An average price of 20 rmb, costing 1.35 billion rmb—the cost is very high. This indicates two things: first, they have strong financial resources and great determination; second, they were so eager and paid such a high cost to get this ’admission ticket’ that their intentions must be significant, certainly not a simple financial investment.”

Liang Zhen chimed in, his tone like cold legal clauses: ”According to regulations, shareholders holding 5% have the right to propose an extraordinary general meeting and nominate directors. Once their people enter the board of directors, they will gain the right to know the company’s core information, which is undoubtedly letting the wolf into the house. Their goal is very likely to obtain intelligence and influence decisions through the board of directors, paving the way for further subsequent share increases or even a struggle for control.”

Su Chen leaned back in his chair, his eyes scanning the three partners he trusted most, but a cold curve appeared at the corner of his mouth: ”Want to come to Spark’s board to reap the rewards? Or want to spy on our core secrets? Tell them, don’t even think about it.” He sat up straight, his tone resolute, ”Spark’s board does not welcome any ’barbarians’ with ulterior motives. My attitude is: firmly reject!”

”Understood!” The three responded in unison, their eyes full of fighting spirit.

The ironclad defense was launched immediately!

The public opinion counterattack was launched first. Several authoritative financial media outlets with close ties to Spark Technology published commentator articles at almost the same time.

”Economic Observer”: ”Beware of ’barbarians’ knocking at the door; what Spark Technology needs are strategic investors, not capital speculators!”

”Securities Times”: ”Upholding the founder’s spirit, ensuring the long-term stable development of the enterprise—looking at how private enterprises should deal with hostile buy-ins from the perspective of Spark Technology.”

The tone of the articles was distinct, portraying the capital behind Zhou Tianyu as short-sighted ”barbarians” who might destroy the company’s long-term development, successfully winning the sympathy and support of a large number of small and medium shareholders and public opinion.

The legal defense line was built simultaneously. Liang Zhen led a large legal team, working day and night, to carefully comb through every transaction record of ”Tianqiong Capital” and all its disclosed persons acting in concert over the past three months.

”President Su, we have discovered that the transaction IP addresses of several accounts highly overlap and are associated with the registered address of Tianqiong Capital.” Liang Zhen reported to Su Chen, ”We have reason to suspect that before the buy-in, there may have been a violation of failing to timely disclose the relationship of persons acting in concert. We have organized the preliminary materials and are preparing to file a real-name report to the Securities Regulatory Bureau.”

Internal unity was even more rock-solid. Su Chen personally communicated with all core technical backbone and business leaders such as Wang Ming, Evan Chen, Liu Jian, and Zhang Shuo, clarifying the challenges the company faced and the firm attitude of resistance. Everyone unhesitatingly expressed that they would unite closely around Su Chen, ensuring that company operations would not be interfered with in any way. At the same time, Su Chen also dialed Zhao Feng’s number.

”Brother Su, don’t worry!” Zhao Feng said firmly on the other end of the phone, ”Dingfeng stands with you! If necessary, we can sign an agreement for persons acting in concert; adding up to over 80% of the equity, I’d like to see what kind of waves he can stir up!”

Just as the defensive fortifications were initially formed and Su Chen breathed a slight sigh of relief, the encrypted phone on his desk rang with an urgent sound. The caller ID showed a strange number, but the origin was displayed as an overseas offshore region.

Su Chen pressed the answer button, and Zhou Tianyu’s familiar and uncomfortable voice came through, but this time, there was no more hypocritical politeness, only cold, threatening directness left.

”President Su, congratulations. Oh no, it should be shared congratulations, after all, we are now... shareholders sitting on the same boat.” Zhou Tianyu’s voice carried a hint of mockery, ”Now, we finally have the qualifications to sit down and have a good talk, right?”

Su Chen’s tone was flat: ”I have nothing to talk about with you.”

”Don’t be in such a hurry to refuse, President Su.” Zhou Tianyu chuckled, ”The capital market is all about information symmetry. As important shareholders, we are very concerned about the company’s next steps. For example... the market is rumored that your company’s secretly developed ’xinghuo no. 2’ seems to have made breakthrough progress? I wonder when we ’insiders’ can get a first look?”

Su Chen’s pupils contracted sharply!

The R&D of ”xinghuo no. 2” belonged to the company’s highest secrets, known only to the core R&D team and a few senior executives! How did Zhou Tianyu find out?! And listening to his certain tone, it didn’t seem like a guess!

A chill climbed up Su Chen’s spine.

The fangs of capital had been bared, and more dangerous information loopholes hidden in the dark seemed to have quietly emerged.

Zhou Tianyu’s final words, like a viper’s tongue, still lingered in Su Chen’s ears after the phone hung up.

”President Su, the chess game has only just begun. Let’s... play slowly.”