Tech Giants: Starting from Bankrupt Companies

45: Chapter 45: The Empire’s RewardOn the first day of 2017, as the clock struck midnight and most people were still immersed in the lingering joy of the New Year’s holiday, the eyes of the Chinese capital market were already focused on one point—the upcoming 2016 full-year financial report of Spark Technology. This report was not only a summary of the past year but also the ultimate test of the true quality of this company that had created countless miracles.

At exactly 9:00 AM, Spark Technology posted that long-awaited financial report on the official platform of the Shanghai Stock Exchange without any warning, in an almost calm manner.

The data was cold and hard, yet it carried an overwhelming power:

* **Total annual revenue: 125 billion rmb.**

* Consumer electronics sector (drones, cameras, and core modules): 20 billion (after experiencing nearly two quarters of supply suspension and production halts, it relied on inventory and the domestic market for stubborn support).

* Power battery sector (Spark Power): 70 billion (occupying absolute dominance, becoming the group’s strongest cash cow).

* Defense sector (consolidated with Spark-Arab Defense Company): 35 billion (a sudden emergence, contributing a staggering increase).

* **Net profit attributable to shareholders of the listed company for the year: 46 billion rmb!**

**46 billion!**

This number was like a thunderclap, exploding over the capital market on a winter morning. After a brief dead silence, there was a mountain-shaking, sea-like surge of excitement!

This report card not only far exceeded the seemingly impossible 20-billion performance target set during the second round of financing but left it far behind! It clearly outlined the prototype of a diversified commercial giant with strong risk resistance and extremely high profitability in every sector.

On January 3rd, the A-share market opened for the New Year.

Spark Technology’s stock code became the sole protagonist on the screen. Buying capital, like a giant beast that had lost its mind, flooded in frantically, swallowing sell orders in an instant. It hit the daily limit up right at the opening! Over the next two days, without suspense, it hit consecutive ’one-line’ limit-up boards!

On the K-line chart, that steep, almost vertical red line pierced through all technical analysis frameworks; it represented a pure capital faith and market sentiment.

**January 6th, a milestone moment to be recorded in the history of A-shares.**

Under the gaze of countless bloodshot eyes, Spark Technology’s stock price brazenly broke through the 600 yuan mark! The company’s total market value subsequently reached the astonishing height of 600 billion rmb!

”A six-hundred-billion giant is born!”

”Spark Technology, the new king of A-shares!”

”From ST bankruptcy to a six-hundred-billion market value, Su Chen only took two years!”

The front-page headlines of financial media were almost occupied by the same exclamations. The cover of Finance Weekly even used a photo of Su Chen giving a steady speech at a press conference, accompanied by a massive headline—’The Su Chen Empire: The Logic of Earning 46 Billion Net Profit in One Year’.

Analysts had given up on finding suitable valuation models. A senior market figure confessed on television: ”For Spark Technology, traditional PE/PB ratios have become invalid. The market is paying the ultimate premium for its ability to ’break monopolies and define the future.’ As long as its technological iterations don’t stop, its ceiling is immeasurable.”

However, just as the market was going crazy over the six-hundred-billion market value, Spark Technology made a move that showed even greater vision.

During the subsequent earnings call, Shen Nanpeng’s steady and clear voice reached the ears of every institutional investor and analyst through the airwaves:

”...Based on the company’s good cash flow status and sufficient confidence in future development, to give back for the long-term trust and support of our shareholders, the board of directors has reviewed and approved a plan to implement the company’s **first profit distribution** since going public.”

He paused, as if leaving time for the market to digest the news, and then announced forcefully:

”For this dividend, we will take **10% of the 2016 net profit, which is 4.6 billion rmb**, to be distributed in cash to all shareholders.”

4.6 billion in cash dividends!

On the other end of the conference call, there was a sound of uncontrollable gasps. In the A-share market, many high-growth companies tend to reinvest all profits; a company like Spark Technology, starting large-scale cash dividends at such a high-growth stage, was truly one in a million.

Su Chen took over the conversation, his voice through the microphone calm yet full of power: ”Since its founding, Spark Technology could not have succeeded without the trust and companionship of every shareholder through the wind and rain. This 4.6 billion is our token of gratitude. What we want to convey is that Spark Technology pursues more than just the growth of market value; we want to **share the value of the company’s growth** with all partners who identify with and support us. This is just the beginning.”

These words were like a warm current injected into the market, which had become somewhat restless due to the frenzy. It sent a strong signal: Spark Technology not only has the ability to make money but also the will and vision to share the results with investors. This not only stabilized some capital seeking short-term arbitrage but also attracted a large number of value investors who focus on long-term stable returns.

The capital market responded with the most practical recognition. After the stock price experienced consecutive limit-ups, although the limit was opened, there was no massive sell-off for profit-taking. Instead, a steady turnover formed at high levels, and it continued to maintain a slow upward trend. Market confidence became even more solid because of this tangible dividend.

If the shareholder dividend was the vision Spark Technology showed to the outside world, then the internal incentive plan announced immediately after was a nuclear bomb for internal cohesion.

The day after the dividend announcement was released, Spark Technology’s internal office system ’Spark Home’ and the email inboxes of all employees simultaneously received a heavyweight email from the group headquarters, jointly signed by Su Chen and Lin Wan—the **’Light of Spark’ Employee Stock Ownership Incentive Plan**.

The opening of the email read: ”Spark’s brilliance today is inseparable from you, who ignited the first spark during the darkest hour. The glory of the empire should be shared by every warrior who built it.”

The details of the plan were then announced:

1. Benefiting the grassroots and honoring the veterans: From the shares repurchased from the open market, the company will take 1% of the total share capital (worth approximately 6 billion rmb at the current market value) and convert it into stock options with extremely favorable exercise conditions, granted to approximately 5,000 veteran employees who joined and stayed during the company’s most difficult period in 2015.

* This meant that these 5,000 early employees would each receive stock options worth **approximately 1 million yuan** on average! The email clearly stated that this part of the options has a long lock-up period and can only be repurchased by the company or enjoy dividends, aiming to deeply bind employee interests with the company’s long-term development and avoid short-term cashing out.

2. Incentivizing the core and highlighting excellence: Simultaneously, ten core executives including Lin Wan, Shen Nanpeng, Liang Zhen, Wang Ming, He Jing, Wu Hao, Yang Yang, Liu Jian, Evan Chen, and Luo Qinghe will receive stock options with a total value of 1 billion rmb—an average of 100 million each—to commend their irreplaceable and outstanding contributions to the company’s leapfrog development.

This email triggered an earthquake within Spark Technology no less than that of the external capital market!

In the technology R&D center, a hardware engineer who had jumped ship from a foreign company in 2015 despite his family’s opposition looked at the string of numbers representing huge wealth in the email. His hands trembled, and his eyes instantly turned red. He suddenly stood up and shouted to the entire project team: ”Brothers! Did you see?! President Su didn’t forget us! Two years ago, I bet my career on Spark; today, the company has given me a future!” The whole project team went silent for a moment, then erupted into a huge cheer, and some even excitedly threw their documents into the air.

On the production line, Master Li, an old foreman who was personally persuaded to stay by Wang Ming during the production halt crisis and had mentored apprentices to maintain equipment, pointed at his phone screen with rough fingers. He confirmed it several times before choking up to the apprentices gathered around: ”See that? Following President Su, we won’t be mistreated! This... this is enough to buy a decent wedding house for my kid back home!” His simple words expressed the most genuine joy and gratitude.

In the administrative office area, several female clerks who also joined in 2015 and stayed even when salaries couldn’t be paid hugged each other, crying and laughing. They might have just wanted a job back then, but they never expected their loyalty and dedication would yield such a heavy reward.

The internal forums and chat groups were completely flooded with messages like ”Thank you, President Su!” and ”Long live Spark!” An unprecedented sense of belonging, pride, and ownership swept through every corner of the company like a surging tide. This wealth bound not just interests, but hearts—a brand of iron loyalty that no competitor could ever sway.

The news inevitably spread to the outside world. Topics like ”Spark Technology’s million-yuan per capita equity incentive,” ”Su Chen giving houses to early employees,” and ”The boss from someone else’s company” instantly topped the charts on various social platforms.

Workers across the internet cast gazes of extreme envy:

”Is it too late for me to quit my job and go sweep the floors at Spark?”

”Asking if Spark is still hiring cleaners? I’m a graduate with a major in cleaning from a top 985 university!”

”This is true common prosperity! Su Chen is a role model for entrepreneurs!”

”I was a tech fan before, now I’m a fan of his character! Just for this vision, I’m going to buy out Spark’s products!”

Spark Technology’s appeal in the talent market reached its peak at this moment, becoming an undisputed holy land in the hearts of countless top university graduates and senior technical talents.

In Shenzhen, on the top floor of Spark Technology’s headquarters.

Su Chen and Lin Wan stood side by side at the window, overlooking the employees in the park below who were still immersed in great joy.

”Now, the people’s hearts are completely settled,” Lin Wan said softly, with a gratified smile on her face.

Su Chen’s gaze was distant as he slowly said, ”Wealth dispersed, people gathered. These 6 billion have bought an iron army that can accompany Spark through the next ten or twenty years of battle. This is the company’s most precious asset, a ’human heart dividend’ that no technology can replace.”

The empire’s reward gave profit to shareholders and wealth to employees. Spark Technology, with a brilliant financial report, a historic dividend, and an unprecedented employee incentive, perfectly completed its ’coming-of-age ceremony’ as a great enterprise. Its foundation had never been as solid as it was now; its future had never been as clear and broad. The road ahead is long, but this team, armed with both wealth and faith, is already fearless of any storm.