Tech Giants: Starting from Bankrupt Companies

63: Chapter 63: Chinese Standards, Global Echoes 3Cooperation Summary (June 13)

At the Spark Power media briefing, Zhang Zhen stood on the stage with a world map displayed on the large screen behind him, dotted with flag icons representing partners.

”Over the past two weeks, Spark Power has signed formal cooperation agreements with 15 global automotive companies,” Zhang Zhen’s voice echoed through the venue’s speakers. ”These include Geely, Volkswagen, Tesla, Mercedes-Benz, BMW, Audi, Toyota, Honda, Hyundai, Great Wall, Changan, FAW, GAC, Nio, and Xpeng.”

Every time he announced a name, whispers rippled through the audience. This list covered almost all major global car manufacturers.

”The forms of cooperation are diverse: deep co-creation, joint ventures, strategic procurement, and technology exchange.” Zhang Zhen switched the slides to show the summarized data. ”The estimated total order value over the next three years is... 228 billion rmb.”

Camera flashes went off frantically.

”Specifically: Geely’s Haohan platform will be fully equipped; the Volkswagen Germany joint venture factory will go into production next year with an annual capacity of 500,000 sets; Tesla will procure 150GWh of batteries over three years; BBA will fully adopt our systems for their next-generation electric platforms; Japanese and Korean car companies will procure battery packs and BMS; BBA will deeply customize and co-create the three-electric system, covering all mid-to-high-end models of the four major domestic car companies...”

Zhang Zhen paused to let the reporters digest the information.

”What does this mean?” He asked and answered himself. ”It means that starting in 2020, for every three electric vehicles sold globally, at least one will be equipped with Spark Power’s core three-electric system. It means that Huaxia’s technical standards will become one of the benchmarks for the world’s electric vehicles.”

A reporter raised their hand: ”Mr. Zhang, with such large-scale supply, can Xinghuo’s production capacity really keep up?”

Zhang Zhen pulled up the production capacity plan: ”By the end of 2019, Xinghuo will have eight super factories globally: four in Huaxia, two in Germany, and two in Southeast Asia. The total planned capacity is 600GWh, which is enough to meet global demand before 2025.”

”Will the technology continue to lead?” asked another reporter.

”Spark Power invests 25% of its revenue into R&D.” Zhang Zhen gave a staggering figure. ”We are already developing a solid-state battery prototype with an energy density of 260Wh/kg, the motor efficiency target is 98%, and the electronic control system will integrate automotive-grade AI chip technology. We will continue to dig the technological moat deeper and deeper.”

Global Media Storm

Within three hours after the briefing ended, global media headlines were occupied by the same news.

The front page headline of the British ”Financial Times”: ”Huaxia Power: How Xinghuo Rewrote the Rules of the Century-Old Automotive Industry in One Week”. Subtitle: ”From Technology Import to Export, Huaxia Enterprises Achieve ’Reverse Colonization’ in Core Automotive Fields for the First Time.”

The article analyzed the joint venture agreement between Xinghuo and Volkswagen in detail, pointing out: ”For 10 billion euros, Volkswagen is buying not just production capacity, but time. When a German giant has to seek technological salvation from a Huaxia enterprise, one era ends, and another begins.”

The in-depth report by The Wall Street Journal focused on the capital market: ”Xinghuo Valuation Logic Reshaped: From Huaxia Supplier to Global Technology Oligarch.” The article calculated Xinghuo’s expected profit for the next three years and concluded: ”If Xinghuo can maintain its technological lead, its market value may surpass the combined value of Toyota and Volkswagen within five years.”

The cover of the German ”Der Spiegel” was shocking—a composite image: above the Volkswagen factory in Wolfsburg, the flame logo of Xinghuo was flying. The headline was: ”Change in Wolfsburg: Our Cars, Their Hearts.” The text was full of complex emotions: ”We must admit that on the track of electrification, Huaxia is already half a step ahead. What Volkswagen exchanged for 10 billion euros is not just batteries, but a ticket to participate in the future game.”

Domestic Media in Jubilation

CCTV’s ”Focus Report” produced a forty-minute special documentary ”A ’Huaxia Heart’ Beating for the World,” starting from Xinghuo’s early bankruptcy crisis, to the stunning Divine Travel 2, and now global car companies lining up to cooperate. The commentary was deep and powerful: ”This is not the victory of one company, but a technological eruption that has finally arrived after a country has worked hard in the field of high-end manufacturing for thirty years.”

The headline commentator article of Huaxia Daily was titled: ”Technological Confidence Leads a New Paradigm of Industrial Export.” The article pointed out: ”Xinghuo’s success proves that the upgrading path of Huaxia’s manufacturing industry can jump directly from OEM assembly at the bottom of the ’Smile Curve’ to technological R&D and brand standards at both ends of the curve. This is true high-quality development.”

Capital Market Carnival

On Monday, June 13, at the opening, the stock price of Spark Group opened high directly.

At 9:30, the stock price jumped from 1,150 rmb last Friday to 1,250 rmb, an increase of 8.7%.

At 10:15, Morgan Stanley released an emergency research report: ”Spark Power — The ’Intel + Qualcomm’ of the Global Electrification Era,” giving a ”Strong Buy” rating with a target price of 1,800 rmb. The report wrote: ”What Xinghuo is doing is replicating the roles of Intel in the PC era and Qualcomm in the mobile phone era during the automotive electrification process—defining the industrial ecosystem and obtaining excess profits by mastering core chip/systems.”

At 11:30, Goldman Sachs, UBS, CICC, and more than twenty other domestic and foreign brokerages collectively raised their target prices, ranging from 1,500 to 2,000 rmb.

After the afternoon opening, buying became even more intense. Institutional investors, foreign capital, hot money, and retail investors were all scrambling to buy. This stock, which almost delisted two years ago and once fell below 1 rmb, has now become the brightest star on the A-share market.

On the stock forum, a post was pinned to the homepage with the title: ”From 3 rmb to 1300 rmb, My 730 Days with Xinghuo.”

The poster ”Value Watcher” wrote: ”In July 2015, Xinghuo’s stock price was 3 rmb, and the company was on the verge of bankruptcy. With the mindset of gambling on the country’s fortune, I took out all my savings of 500,000 and bought 166,000 shares. Over the past two years, I have experienced several limit-downs, several doubts, and several times I wanted to cut losses and leave. But I saw the Xinghuo No. 4 drone, I saw the Divine Travel battery, and I saw Xinghuo speaking with products again and again. At today’s close, my account market value is 21.58 million. This is not because I have a good eye, but because I bet correctly on the general trend of this country’s industrial upgrading.”

Below the post, there were over 100,000 replies.

”Salute to the legend!”

”Crying, this is value investment!”

”I bought it two years ago too, but I sold it after holding it for three months. I’m kicking myself.”

”Is the original poster financially free now?”

”Watcher” replied to the last one: ”Financially free, but I won’t sell. I want to see the day Xinghuo becomes number one in the world.”

June 15, closed at 3:00 PM.

The stock price was fixed at: 1,300.00 rmb.

The single-day increase was 8.0%, with a cumulative increase of 26.7% over three consecutive days. The total market value was 1.3 trillion rmb, surpassing the Industrial and Commercial Bank of China to become the second-largest company in the A-share market, second only to Moutai.

In the Spark Technology park, someone didn’t know who opened the window first and shouted to the people downstairs: ”Xinghuo is awesome!”

Immediately after, all the windows in the entire R&D building opened, and engineers, technicians, and administrative staff shouted in unison:

”Xinghuo is awesome!”

The sound echoed over the park and spread far, far away.

In the president’s office, Su Chen stood in front of the floor-to-ceiling window, watching the employees gathering spontaneously downstairs to celebrate. Lin Wan stood beside him and whispered: ”Two years ago, there were less than two hundred people here, and we couldn’t even pay salaries. Now, we have eighty thousand employees and a trillion-market value.”

Su Chen didn’t speak, just looked out the window.

The sun was setting, and the golden sunlight shone on the huge metal flame sculpture in the center of the park—that was the logo of Xinghuo, which was shining brightly at this moment.

”This is just the beginning.” Su Chen finally spoke, his voice calm but containing endless power, ”Electrification is just the first stop. Next is intelligence, networking, and sharing... What we are going to do is define the future of the entire mobile travel.”

He turned around and looked at the world map hanging on the wall.

On it, Xinghuo’s partner network had spread all over the world.

And beyond that, there was a wider sky.

”Let the world remember the name of Huaxia technology.”

Outside the window, night fell, and thousands of lights lit up.

And the star-studded sea that belonged to Xinghuo was slowly unfolding.