Tech Giants: Starting from Bankrupt Companies

200: Chapter 200 The ”Ultimate Reinforcement” of the Equity EmpireTime returns to March 6th, in the boardroom of Spark Technology headquarters.

Shenzhen, 38th floor of the Spark Technology Building.

A dozen people sat in the conference room: Su Chen, Lin Wan (CEO), Liang Zhen (CLO), Shen Nanpeng (CFO), and representatives from three institutions.

These three institutions were:

Shenzhen Metro Group: State-owned capital, invested 6 billion rmb three years ago. Holding 3.41% of the shares.

Temasek: Singapore sovereign wealth fund, invested 7 billion USD (approximately 50 billion rmb). Holding 0.91% of the shares.

Saudi sovereign wealth fund: Invested 7 billion USD, holding 0.91% of the shares.

Together, they held approximately 5.23% of Spark Technology’s shares.

Now, Su Chen intended to buy back these shares.

”Everyone, you have all seen the documents,” Su Chen began, ”My offer: 300 billion rmb to acquire all the Spark Technology shares you hold.”

The conference room went quiet.

Wang Jianguo, Chairman of Shenzhen Metro Group, spoke first: ”Mr. Su, we invested 6 billion rmb, and now you are offering 200 billion rmb (calculated by share ratio). A 33-fold return, I am very satisfied. But... why buy back now?”

Su Chen was frank: ”Because Spark Technology is about to enter deep waters. The chip war, investment in new energy, global expansion... these decisions may carry short-term risks and damage the stock price. I need absolute control to make rapid decisions.”

Temasek representative, the Chinese-descent female manager Lin Wei nodded: ”I understand. Spark Technology’s current valuation is already very high, and we can lock in our returns by exiting. Plus, since Mr. Su is willing to pay a 5% premium, we have no reason to refuse.”

Saudi representative, Prince Ali, participated via video: ”Mr. Su, money is not the issue. What we are more concerned about is whether we can maintain strategic cooperation with Spark Technology after exiting?”

”Of course,” Su Chen said, ”Spark Technology’s business in the Middle East will continue to expand. We plan to build a solar battery factory in Saudi Arabia and a data center in the UAE. These collaborations will not be affected.”

Prince Ali smiled: ”Good, then we agree.”

The three institutions voted unanimously in favor.

Total transaction price: 300 billion rmb. Repurchasing 5.23% of Spark Technology equity.

Payment method: Su Chen will pay in installments through his personal holding company, ’Chenxing Capital.’ A down payment of 100 billion rmb (from bank loans, using Spark Technology equity as collateral), and the remaining 200 billion rmb paid over 2 years.

After signing the agreement, Wang Jianguo shook Su Chen’s hand: ”Mr. Su, investing in you three years ago was the best decision of my career. Spark Technology has changed Shenzhen—we used to be the ’Capital of Copycats,’ now we are the ’Capital of Innovation’.”

”It is the era that gave us the opportunity,” Su Chen said.

Lin Wei also said: ”Spark Technology is the pride of Chinese enterprises. I hope you go even further.”

March 10th

After the transaction was completed, Spark Technology’s equity structure changed:

Su Chen personally: 70.02% (held through Chenxing Capital)

Spark Technology Employee Trust: 5% (covering 150,000 employees, each has a share, only dividend rights.)

SASAC: 6.13% (strategic investor, remaining as an observer)

Huawei Group: 2.49% (business alliance, deep cooperation)

Public shareholders: 16.36% (mainly secondary market investment institutions and individual investors)

The Legal Department issued a legal opinion:

”Mr. Su Chen holds more than two-thirds of the shares, and according to the ’Company Law,’ he possesses absolute control over the company. He can unilaterally pass major resolutions such as amending the articles of association, increasing or decreasing capital, and mergers or divisions. At the same time, the shareholdings of SASAC and Huawei form a strategic balance, preventing the risk of ’one-share dominance,’ which conforms to modern corporate governance principles.”

That day, Su Chen released an internal letter:

”To All Spark Technology Colleagues”

”...Many people asked me: Why spend 300 billion rmb to buy back shares? Is it because you don’t trust our partners?”

”No. I am grateful to every investor who supported Spark Technology during difficult times. But today, Spark Technology stands at a new historical juncture.”

”The chip war is far from over, the path for new energy vehicles has just begun, and the global market is ever-changing. The decisions we need to make in the future may damage the stock price, affect profits, and bear pressure in the short term.”

”If equity is dispersed, every decision would have to balance the interests of all parties, which might cause us to miss strategic opportunities.”

”So I chose to buy back the shares, not to establish a dictatorship, but so that when a storm comes, the company can make rapid decisions and not be held hostage by short-term interests.”

”Spark Technology’s mission is not to make the most money, but to do the hardest things: break through technological blockades, promote industrial upgrading, and head toward the stars and the sea.”

”This requires courage, patience, and more importantly... the determination not to be distracted.”

”Thank you for your understanding. Spark Technology belongs to everyone, but I will bear the responsibility for the decisions.”

This letter was posted on the internal forum and received over 100,000 views.

The comment with the most likes:

”Mr. Su, we are with you all the way.”

March 12th

Beijing, in a certain ministry conference room.

The leader looked at the document, his brows furrowed.

Document title: ”On the Equity Change of Spark Technology and Subsequent Risk Assessment.”

The assistant reported: ”Su Chen used 300 billion rmb to buy back shares, and now holds over 70%, possessing absolute control. From a corporate governance perspective, this is conducive to decision-making efficiency, but it may also lead to the risk of a ’dictatorship’.”

The leader put down the document and walked to the window.

Outside the window was Chang’an Avenue, with traffic flowing like a weaver’s shuttle.

”This person, Su Chen,” the leader said slowly, ”is taking steps that are too big. chips, materials, military industry, aerospace... and now he is splitting off consumer electronics for listing, raising 400 billion rmb. He is playing a very big game.”

”Should we intervene?” the assistant asked, ”State-owned capital holdings are down to only 6.13%, with limited influence.”

The leader shook his head and turned around: ”Such a private enterprise is a once-in-a-century phenomenon. Look at his layout: chips are the cornerstone of the information age, materials are the foundation of industry, and new energy is the direction of the future. Every step is taken on the nodes of national strategy.”

He walked back to the table, picked up a red pen, and annotated the document:

”Support market-oriented operations, pay attention to systemic risks. State-owned capital holdings should maintain an observation post role; do not intervene unless necessary.”

After writing, he said to the assistant: ”Tell SASAC not to touch that 6.13% share. This is our ’observation post’ and also a ’seatbelt’—it gives the enterprise freedom while also leaving an insurance policy.”

”Then what if Su Chen makes a decision that is too risky?”

”Risk?” The leader laughed, ”Which of the things he has done hasn’t been risky? Is making chips not risky? Is opposing America’s sanctions not risky? Is making rockets not risky? But he has succeeded in all of them.”

He paused: ”For such an entrepreneur, what we need to do is not to restrict him, but to escort and protect him. As long as he doesn’t cross the red lines—national security, financial stability—let him venture forth.”

The document was issued.

After receiving it, Spark Technology, Su Chen only said three words: ”Understood.”