Tech Giants: Starting from Bankrupt Companies

54: Chapter 54: A Billion-Dollar Gamble: Acquiring HongqiSpark Group headquarters, top-floor boardroom.

Beside the massive circular conference table, the atmosphere contrasted sharply with the bright spring sunlight outside, heavy enough to drip water. All directors and core executives were seated; there was only one topic: whether to acquire an 80% stake in the chronically loss-making Red Flag Automobile for 10 billion rmb.

”Mr. Su, I strongly object!” A senior independent director spoke up first, tapping the table, his emotions stirred. ”What is Red Flag? It’s a bottomless pit that can never be filled! How much money has the state invested over the past twenty years? Twenty billion! And the result? The more they lose, the more they continue to lose! The brand is aging, technology is lagging, and channels are rigid! We at Spark Group are currently in a great position, why should we carry this heavy burden? If this 10 billion were invested in our chip and battery research, how much benefit could it generate? If invested in overseas market expansion, how much market share could it capture? Why throw it into this sinking ship called Red Flag?”

”Director Li makes a valid point,” another director representing institutional investors chimed in. ”From a purely commercial return perspective, the risk of acquiring Red Flag is extremely high; one could even say there is no clear prospect of profitability. This will severely drag down our financial statements, impact our stock price, and shake investor confidence!”

The voices of doubt, like cold tides, continuously battered the tone of the meeting. Everyone cast their gaze toward Su Chen, who sat at the head of the table, silent throughout.

Su Chen slowly raised his head, his gaze sweeping calmly over every director who held an opposing view. He was not angry; in fact, there was a faint curve at the corner of his mouth. But when he spoke, his voice carried an unquestionable penetrating power that instantly suppressed all the noise:

”Gentlemen, what you see is a ’burden’ with book losses and heavy liabilities.” His fingers tapped lightly on the Red Flag materials on the table. ”But what I see is a giant that has slept for too long, one that is about to be awakened by us! A—National Totem—that flows in the blood of 1.4 billion Chinese people!”

He stood up and walked to the massive electronic screen, where 3D models of Spark Group’s ”Qingtian” electric drive system, ”Divine Travel” battery pack, and smart cockpit lit up.

”You ask me why? I tell you, with this 10 billion, we are buying two things!”

He pointed to the Red Flag brand Logo: ”First, it is **the market, it is time!** The name Red Flag possesses unparalleled recognition and emotional accumulation across the land of China. If we were to build a new brand from scratch to enter the high-end passenger vehicle market, how many years would it take? How much marketing expense would be needed to establish even one-tenth of this recognition? Red Flag gives us a shortcut to the top! It can save us at least five years of market education time and tens of billions in marketing expenses!”

Then, his finger moved to Spark Group’s technical models: ”Second, it is **the space to display our technology!** Red Flag has a soul, but it lacks a powerful ’heart’ and a wise ’brain.’ And what does Spark Group have? We have the world-leading ’Qingtian’ electric drive to give it surging power! We have the safe and efficient ’Divine Travel’ and ’Bedrock’ batteries to provide it with lasting range! We have the smart cockpit and autonomous driving technology based on the ’Flint’ chip to equip it with ’eyes’ and a ’brain’ that can foresee the future!”

His voice grew more impassioned, carrying the grand ambition of creating history: ”We are not going to extend the life of a dying brand! We are going to empower it, reshape it, and define it! We will use Spark Group’s cutting-edge technology to inject a brand-new, powerful soul into this ancient totem of Red Flag! What we are going to build is not the ’official car’ of the past, but the ’National Divine Car’ of the future that can represent China’s highest manufacturing standards and technological strength—a new National Car that will make the whole world take notice!”

This resounding and grand exposition was like a gale, blowing away the doubts and gloom that filled the boardroom. Some of the directors who had previously held opposing views fell into deep thought, while new sparks of light began to flicker in the eyes of others.

Lin Wan spoke up at the right moment, her voice clear and calm: ”Mr. Su has already reached a consensus with SASAC, and a 50 billion low-interest loan from the China Development Bank will be specifically used for Red Flag’s technological transformation and channel innovation. We have the capital, the technology, and even more, the determination to break the norm. I believe the risk is controllable, and the opportunity is unprecedented.”

Shen Nanpeng also added: ”From a capital perspective, acquiring the Red Flag brand means we have officially entered the core circle of the country’s high-end manufacturing. The implicit value and long-term strategic benefits it brings cannot be measured by simple financial models.”

Ultimately, faced with Su Chen’s unshakeable will and clear strategic blueprint, the board passed the resolution by an overwhelming majority: Spark Group would invest 10 billion rmb to acquire an 80% stake in Red Flag Automobile, with SASAC retaining 20%. An acquisition destined to be recorded in the annals of Chinese business history was thus finalized.

As soon as the news was officially disclosed, it was like pouring a ladle of cold water into a pan of hot oil in the capital market, instantly igniting a blazing fire!

Acquiring Red Flag, SASAC taking a 5% stake at a trillion-yuan valuation, a 50 billion low-interest loan from the China Development Bank... these three epic benefits superimposed, releasing an incredibly strong signal: Spark Technology was no longer just a successful private enterprise; it had become an extended arm of national will in the field of high-end technology and manufacturing!

The next day, the A-share market opened.

Spark Technology’s stock code became the sole protagonist on the screen. Buying funds surged in like a tsunami, the opening price jumped high, and then the time-sharing chart shot upward in a nearly 90-degree straight line! Massive buy orders devoured all sell orders, and within fifteen minutes of opening, the stock price was **firmly locked at the 800 rmb per share limit-up!**

”It’s crazy! Everyone’s gone crazy!”

”Trillion-yuan valuation! The national team enters the market! Acquiring Red Flag! This buff is fully stacked!”

”Didn’t manage to grab any at the opening! Who is selling? Are they stupid?”

Stock bars, forums, and trading software comment sections were completely boiling over; everyone’s emotions were ignited.

In this capital carnival, a seemingly inconspicuous post was quickly pushed to become a hot topic on the stock bar, titled: [Brothers, I’m numb, can forgetting my password really make me a stock god?]

The poster’s ID was ”Canghai Yisu.” In the post, he recounted his experience: ”At the end of ’15, Spark Technology was still an ST stock, falling so hard even its mother wouldn’t recognize it. I thought I’d take a gamble, took 5,000 rmb of ’private money’ and bought some. It was around 1 rmb back then, right? After buying it, I forgot about it, even forgot the account password... I’ve been busy as a dog getting married and having kids for the past two years, completely forgot about this. Two days ago, I was cleaning the house and dug out my old phone and laptop, only then did I remember this. It took a lot of effort to retrieve the password and log in to take a look... I... I just knelt down!”

Attached below the post was a screenshot of the account holdings with the sensitive information blurred, but the key information was clearly visible: Security Name: Spark Technology, Number of Shares: 5,000 shares, Current Market Price: 800 rmb, Total Assets: 4,000,000.00 rmb!

**5,000 rmb principal, in just over two years, turned into 4 million! Over 800 times the return!**

”Holy crap! The legendary ’forgotten’ stock god!”

”Boss, please accept my knees!”

”This is what value investing is! Buy and forget!”

”I’m jealous, why is my hand so itchy to check the market every day!”

This ”A-share’s strongest forgotten myth” was crazily reposted by major financial media and social media. Its dramatic nature and astonishing rate of return greatly stimulated the market’s nerves, adding the most legendary footnote to this capital feast of Spark Technology.

The media interpreted it in depth from various angles:

The Financial Times commentary section wrote: ”Acquiring Red Flag is far from a simple asset purchase. It marks that the private technology giant Spark Technology has been officially incorporated into the core system of the country’s high-end manufacturing, and its future development will be deeply bound to national strategy.”

Technology Morning Post analysis pointed out: ”This is a perfect win-win. The state has found the most ideal technical carrier and market engine for the national brand that is in urgent need of revitalization; while Spark Technology has gained a priceless, heavy brand endorsement and unparalleled political and business resources.”

Global Online’s observation was more macro: ”This acquisition is highly symbolic. Spark Technology has thereby completed a closed-loop layout in the automotive industry from core components (three-electric systems) to vehicle manufacturing, and its future profit imagination space has been completely opened, with no visible ceiling.”

However, the real nuclear bomb came from across the ocean, from the old man known as the ”Oracle of Omaha.”

Just as Spark Technology’s stock price remained stable at the 800 rmb limit-up and the market was buzzing, Warren Buffett accepted an exclusive TV interview with CNBC in his office in Omaha. When the host asked about his views on current global technology stocks, especially Chinese technology stocks, Buffett adjusted his tortoiseshell glasses, a signature, gentle, and wise smile appearing on his face.

”You know, I am usually cautious about overly popular technology companies,” Buffett said unhurriedly, ”but there is one company that is one of the most perfect combinations of innovation spirit, technological barriers, market execution, and long-term social value that I have seen in the past decade. It perfectly interprets the ’moat’ theory I advocate—its moat lies not only in technology, but also in the huge market it occupies and its profound understanding of national strategy.”

The host keenly followed up: ”Can you disclose which company it is?”

Buffett smiled and said clearly: ”Yes, it is China’s Spark Technology. I think it represents a new paradigm. My team and I, after long-term observation and careful evaluation, have already established a position of about 1% of its total share capital through compliant channels. Furthermore, I tend to regard it as a non-sale item, intending to hold it for a long time, or even permanently, just as we held Coca-Cola and American Express in the past.”

The public endorsement and personal involvement of ”Stock God” Buffett was like dropping an atomic bomb into the boiling capital market!

Global financial media headlines were instantly occupied by this news! ”Buffett makes a heavy bet on China’s Spark Technology!” ”Endorsed by the Stock God, where is Spark Technology’s moat?” ”Global capital vane points to the East!”

This became the last straw that crushed the short sellers, and also ignited the final frenzy of global capital. Through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, funds from all over the world, like gold rushers who discovered the New World, poured madly into the A-share market, snatching Spark Technology’s circulating shares (only about 13.57% left), which had become increasingly scarce due to the state-owned capital investment and Su Chen’s controlling stake.

In the following trading days, Spark Technology’s stock price started an ultimate sprint that was jaw-dropping and would be recorded in history!

810 rmb! 850 rmb! 900 rmb! 950 rmb!

Buying orders surged like a tide, and the K-line chart broke through integer barriers that were once considered fantasies one after another with an almost brutal and unreasonable posture. All technical analysis had failed; only the purest capital will and infinite longing for the future remained in the market.

On the fifth trading day after Buffett’s speech, at 2:40 PM, Spark Technology’s stock price, under the gaze of countless bloodshot eyes, defiantly broke through that dreamlike number—**1,000 rmb!**

Finally, the closing price was fixed at **1,050 rmb** per share!

With the closing price settled, Spark Technology’s total market capitalization was also set in stone—**1.05 trillion rmb** (total issued share capital of 1 billion shares multiplied by the stock price)!

This meant that a company that was still wearing an ST hat and on the verge of bankruptcy and liquidation two years ago, under the leadership of Su Chen, not only came back to life in less than three years, but also soared into the sky, successfully joining the **Trillion-Yuan Market Cap Club**, which symbolizes the status of a top business giant!

At this moment, Spark Technology was no longer just a company; it had become a symbol, a miracle, an immortal business legend that would be forever praised in the global capital market! And the creator of all this—Su Chen, was standing at the pinnacle of the trillion-yuan mark, overlooking the technology empire he had built with his own hands, his gaze cast toward the more distant stars and seas.