Tech Giants: Starting from Bankrupt Companies

7: Chapter 7: Product Matrix and Financial Report ShocksTime entered the golden autumn of October 2015, and Spark Technology had long shed the greenness and panic of the beginning of the year, replaced by an atmosphere of order and keen enterprise under high-speed operation.

After successfully resisting the sniping from Lingyun Technology and opening up overseas markets, Su Chen knew clearly that the stage of conquering the world with a single hit product was about to pass; Spark Technology needed a more complete product matrix to consolidate its position and launch an assault on higher-profit hinterlands.

In late October, Spark Technology’s autumn new product launch was grandly held in the renovated company headquarters building.

The number of media and industry insiders present far exceeded the time when xinghuo no. 1 first debuted; the venue was packed, with cameras pointed at the stage, and the number of viewers on the online live broadcast channel had already exceeded one million before the start.

Su Chen was still wearing a simple dark suit, but his gait was full of stronger confidence than ever before.

On the big screen behind him, the eight characters ”Break Through the Horizon, Define the Future” shone brightly.

”Thank you all for paying attention to the growth of Spark Technology.” Su Chen’s opening remarks were steady and powerful, ”The success of xinghuo no. 1 proved the power of ultimate cost-effectiveness.”

”But today, we will not stop here. We want to provide more professional and powerful tools for creators with different needs.”

Without too much build-up, he directly introduced today’s protagonists.

”First, it is for users who pursue more stable image quality and reliable performance — xinghuo no. 1 Pro!”

The lights focused, and a drone that was more refined in detail slowly rose.

Su Chen detailed its upgrade points: the optimized 1080P camera brings a purer night view performance, the enhanced three-axis mechanical gimbal provides stability comparable to professional equipment, and the flight endurance is slightly increased to 28 minutes.

And its price was set at 3999 rmb.

Thunderous applause erupted from the audience.

This price still maintained a price advantage over similar products, but it had already touched the threshold of the mid-to-high-end market.

However, Su Chen changed the subject, pushing the atmosphere at the scene to a higher climax.

”However, for true professional creators, for explorers who yearn to capture every frame of perfect footage, Pro is not enough.”

His voice raised, carrying a kind of passion that leads the era, ”Next, please witness the heavy weapon we have prepared for the professional field — xinghuo no. 1 Max.”

The lights in the venue dimmed, and a spotlight shone on a drone with a slightly larger body and more powerful lines.

Its gimbal structure was obviously more complex, and the camera module was also much larger.

”4K/30fps ultra-clear video recording! 2.7K/60fps high-speed slow motion! Recording every detail of the moment for you!”

”Interchangeable lens interface! Meeting your different creative needs from wide-angle to telephoto!”

”Dual GPS modules! Providing more accurate positioning, more stable hovering, and safer flight guarantees!”

”All this is just to achieve your professional horizon. xinghuo no. 1 Max, priced at 4999 rmb!”

”Wow!”

Although they were mentally prepared, when this price and configuration were announced, the scene still erupted in huge gasps of astonishment.

The performance benchmarked against or even partially surpassed Lingyun Technology’s professional entry-level models that sold for nearly ten thousand, yet the price was almost only half!

This was no longer just a price butcher; this was directly wielding a giant axe, hacking at the most core and profitable hinterlands of the giants!

The online bullet comments went completely crazy, with terms like ”Domestic Rise!”, ”Technological Crushing!”, and ”Lingyun Won’t Sleep Tonight!” flooding the screen.

Market feedback is the only standard for testing products.

In the first month of their launch, the Pro and Max versions achieved amazing sales of 50,000 units and 30,000 units, respectively.

This not only brought considerable profits (the profit per unit for the Max version exceeded 2000 rmb), but more importantly, it successfully elevated the Spark Technology brand image from ”high cost-effectiveness” to a new height of ”technological leadership and professional reliability.”

Many professional users and studios that originally only looked at international big brands like Lingyun Technology began to turn their attention to this up-and-coming brand from Huaxia.

The successful expansion of the product line brought a continuous stream of cash flow and higher brand potential to the company.

And the next blow completely ignited the capital market.

In the newly completed modern conference room, Su Chen, Lin Wan, Wang Ming, and a new face—the newly appointed Chief Financial Officer (CFO) Shen Nanpeng, were making final preparations.

Shen Nanpeng was about forty years old, wore gold-rimmed glasses, had his hair combed meticulously, and carried a sense of steadiness and precision honed in top international investment banks.

He was a talent that Zhao Feng used his connections to strongly recommend to Su Chen, specifically to manage the increasingly complex finance and capital operations of Spark Technology.

”General Manager Su, the third-quarter financial report has been finalized and audited.”

Shen Nanpeng’s voice was calm and waveless, but his eyes revealed a hint of sharpness, ”The data is very beautiful. I am confident that once released, the market will give us the response we deserve.”

Su Chen nodded. Through these few weeks of contact, he had already quite recognized the professional ability of this new CFO.

”Good, let’s release it according to plan.”

In mid-October 2015, on a Sunday, Spark Technology’s 2015 third-quarter financial report was officially released to the public.

This financial report, personally handled by Shen Nanpeng and meeting the highest disclosure standards, was like a depth charge thrown into a calm lake:

As of September 30, 2015:

Huaxia Market: ’xinghuo no. 1’ standard version cumulative sales of 230,000 units.

Overseas Market: ’xinghuo no. 1’ standard version cumulative sales of 250,000 units.

(Note: Sales of Pro and Max versions are counted in the next quarter)

Total revenue for the company in the third quarter: 1.535 billion rmb.

Net profit attributable to shareholders of the parent company: 650 million rmb.

Net profit margin as high as 42.3%.

This data far exceeded the most optimistic expectations of all analysts!

A company that was still wearing the ST Spark hat and on the verge of delisting at the beginning of the year had not only achieved a stunning turnaround in just two quarters but had also raked in over 600 million in net profit!

This is simply a business miracle!

Financial media exploded instantly.

”ST Spark hands over a heaven-defying report card, net profit 650 million!”

”Spark Technology: From the edge of bankruptcy to a money-printing machine!”

”The drone market landscape is changing, the kingly aura of Spark Technology begins to show!”

The capital market expressed their fanaticism in the most direct way.

On the first trading day after the financial report was released, ST Spark’s stock opened with a huge number of buy orders, sealing it at the daily limit! 3.5 rmb!

On the second trading day, it was still a limit up without volume! 3.85 rmb!

On the third trading day... 4.23 rmb!

The stock price was like riding a rocket, with continuous limit ups, unstoppable!

After easily breaking through the 5 rmb mark, it continued to surge upward, and the company’s total market value once soared to over 6 billion rmb!

ST Spark, a name that was once a nightmare that stock investors avoided, had now become a cradle for creating wealth myths.

In the comment sections of trading software, it was full of cheers and exclamations like ”Regret selling too early,” ”Su Chen is my dad,” and ”Spark Technology is awesome.”

In just 8 months, Spark Technology’s stock price increased 6-fold. Many retail investors who cleared their positions at 1 rmb were now regretting it so much their intestines were green. However, those investors with vision who kept buying had huge gains. Because only 20% of Spark Technology’s shares were in circulation, fewer and fewer shares could be bought on the market; most shares were held by institutions, waiting for the stock price to continue rising.

The phone in Su Chen’s office rang; it was Zhao Feng calling.

”Brother Su! No, General Manager Su! Hahahaha!” Zhao Feng’s uncontrollable laughter came from the other end of the phone, ”650 million in net profit! 6 billion market value! This investment of mine is probably the most successful one of my life! I’m convinced, I’m truly convinced!”

Su Chen could feel Zhao Feng’s heartfelt excitement. Although Zhao Feng failed the valuation adjustment mechanism agreement, the 5% stake was now worth 300 million, a 6-fold increase. This was not a startup; for a mature listed company, having its stock price increase 6-fold in a short time was very difficult.

He smiled and responded a few times, hung up the phone with a sense of ease, and then his gaze fell on the financial report on his desk that still smelled of ink.

650 million in net profit, 6 billion in market value... this is just the beginning.

The product matrix has initially formed, the capital market is chasing after it, and the core team is becoming increasingly perfect.

Spark Technology, the giant ship he personally built, has already sailed into the vast deep-water zone, possessing the confidence to compete with any wind and waves.

He walked to the window and overlooked the increasingly prosperous park below.

The next step is to build a deeper moat and firmly grasp his core destiny in his own hands.