371: Chapter 371 Xingchen Automotive Launch

Late spring in Changchun still carried a hint of chill. This motor city, known as the "Detroit of the East," had witnessed the glory and the ups and downs of China's automotive industry. The Red Flag headquarters was located on Dongfeng Avenue, in a Soviet-style building completed in the 1950s. Its heavy stone exterior walls, tall columns, and red five-pointed star reliefs spoke of historical vicissitudes. Inside, however, it had long been revitalized—glass curtain walls, open office areas, and electric vehicle models everywhere gave it an immediate sense of modernity.

Zhou Qingyu stood before the floor-to-ceiling window, overlooking the factory area. In the distance, the newly built intelligent production lines were running at full speed, with brand-new Red Flag electric vehicles rolling off the line, their metallic luster gleaming in the sunlight. He was fifty-two years old, his hair meticulously combed back, wearing a well-tailored dark gray suit. His every move exuded a temperament that blended German rigor with Chinese elegance. A PhD in Mechanical Engineering from MIT and a former Global Vice President of Volkswagen, he had led the development of globally best-selling models like the lavida and Tiguan—that was the resume of the first half of his life. Now, he was the CEO of Red Flag, on the verge of the greatest transformation of his career.

There was a knock on the door, and his secretary peeked in: "CEO Zhou, the team from Spark Group has arrived."

Zhou Qingyu nodded, took one last look at the factory grounds outside the window, and turned toward the conference room.

The conference room was filled with people on both sides of the long table. The M&A team sent by Spark Group was led by Vice President Lin Wan. She was twenty-eight years old, dressed in a white suit with sharp short hair, and thick documents were spread out before her. Zhou Qingyu took the head seat, and after exchanging pleasantries, they got straight to the point.

Lin Wan opened a folder, her voice clear: "Xingchen Motors will invest 160 billion rmb to acquire an 80% stake in Red Flag. The remaining 20% will continue to be held by SASAC. After the merger, Red Flag will operate as an independent sub-brand of Xingchen Motors. The management team will remain unchanged, and CEO Zhou will serve as Executive Vice President of Xingchen Motors and President of the China Region."

Zhou Qingyu remained silent for a moment, his gaze sweeping over the Red Flag executives present. Their expressions were complex—there was anticipation, trepidation, and also reluctance. After three years of development, Red Flag was no longer the brand that survived solely on nostalgia. The H-series sedans were firmly established in the mid-to-high-end market, the X-series SUVs had become the top choice for families, the S-series high-end MPVs were even starting to challenge the Toyota Alphard's dominance, the M-series urban coupes had captured the younger generation, and the mini-series small electric cars were selling out in cities with license plate restrictions. With annual sales exceeding three million units, it was ten times what it had been three years ago.

But Zhou Qingyu knew this was only the beginning.

He spoke, his voice steady: "160 billion is a reasonable valuation. But I need to know, what is Xingchen Motors' positioning for Red Flag? Is it integration and absorption, or fighting separate battles?"

Lin Wan smiled, her expression full of certainty: "CEO Zhou, Spark Group never does things like 'absorption and integration.' CEO Su's meaning is very clear—Red Flag is Red Flag, and Xingchen is Xingchen. Two brands, two positionings, two different tracks. Xingchen focuses on high-end pure electric, benchmarking against Tesla; Red Flag covers all categories, with internal combustion, hybrid, and pure electric running in parallel. What will be shared are technology, platforms, and the supply chain, not erasing each other's boundaries."

Zhou Qingyu nodded slightly, lost in thought.

Lin Wan continued: "Semi-solid-state battery technology will be fully opened to Red Flag. Xingchen's self-developed smart cockpit system and autonomous driving platform will also be available for Red Flag's use. Overseas channels will be shared, and the supply chain will be integrated. You have only one task—to take Red Flag's annual sales from three million to five million, and then to ten million."

In the conference room, the Red Flag executives looked at each other, and some began to smile.

Zhou Qingyu stood up and extended his hand: "Deal."

Lin Wan shook his hand and said with a smile: "CEO Su said that when CEO Zhou was at Volkswagen, you made the lavida a national legendary car. Now, it's time to make Red Flag a global legendary car."

It was April in the capital, and spring was in full bloom. At the Xingchen Motors headquarters on Jianguomen Outer Avenue, the glass curtain walls reflected the CBD skyline. On the top floor, in the office of the President of Xingchen Motors, a negotiation involving tens of billions was underway.

Spark Group was where Su Chen had made his start, but since the rise of Xingchen Technology, his primary focus had long since shifted. However, the overseas automotive business of the Spark lineage had always been an important piece of the puzzle in his mind. Saudi Arabia, Malaysia, Russia—three joint ventures, two years of development, and annual sales of 1.5 million units, covering the Middle East, Southeast Asia, and Eastern Europe. Now, it was time to embed these pieces into the map of Xingchen Motors.

Spark Technology Group CEO Zhang Wei sat behind the desk. In his early fifties with slightly graying temples and wearing a deep blue suit, he exuded the steadiness of an old-school entrepreneur. Opposite him, Xingchen Motors CEO Gu Yanting was flipping through documents. Gu Yanting was forty-five, held a Master's from Cambridge, and was the former President of Audi China. Dressed in a sharp suit, his sharp eyes were visible behind gold-rimmed glasses.

Zhang Wei spoke, his voice low: "CEO Gu, Spark Saudi, Spark Malaysia, and Spark Russia—in these three joint ventures, Spark Group holds a 50% stake, while local partners hold the other 50%. In two years, total sales have exceeded 1.5 million units with profits over 8 billion. How do you intend to acquire them?"

Gu Yanting closed the folder and looked up: "60 billion to acquire the 50% stake held by Spark Group. Control of the three companies will go to Xingchen Motors, while the local partners' stakes and the management systems will remain unchanged. The brands can be considered for a gradual transition to Xingchen or Red Flag."

Zhang Wei smiled, his expression carrying a mix of complex emotions: "60 billion is not a low valuation. But does CEO Gu know how much hardship Spark Group endured to conquer these overseas territories? High-temperature testing in Saudi Arabia, adapting to the right-hand drive market in Malaysia, and the certification barriers in Russia—every step was paved with money."

Gu Yanting nodded, his tone sincere: "CEO Zhang, CEO Su is well aware of Spark Group's hardships. That's why for this acquisition, Xingchen won't pressure the price, won't haggle, and won't delay payment. 60 billion, cash settlement, arriving within a month. And—"

He paused and pulled a page from the folder: "Xingchen Motors is offering Spark Group the right to subscribe to 5% of its original shares. With the Hong Kong listing and a valuation of two trillion, that 5% is worth 100 billion."

Zhang Wei was stunned. He looked at that page, remained silent for a long time, and then laughed, this time with a sense of relief: "You kid, you're still so good at calculations. 100 billion in expected returns in exchange for my 60 billion overseas empire. I win, and you win too."

Gu Yanting also laughed: "CEO Zhang, this is called a win-win. Spark Group's overseas channels combined with Xingchen Motors' technology and brand—together, one plus one is greater than two."

Zhang Wei stood up, walked to the window, and watched the bustling traffic on Jianguomen Outer Avenue. After a long while, he turned and extended his hand: "Deal. Spark Group will always be a brother to Xingchen; our two groups won't quibble over details with you."

Gu Yanting shook his hand: "Thank you."

May 10th, Hong Kong.

Exchange Square in Central, the home of the HKEX—a modern glass-walled building shaped like a butterfly about to take flight. The morning sun spilled onto the glass, golden spots of light dancing and flickering. In front of the building, the red Spark Bank Tower and the gray Bank of China Tower stood side by side. The sea breeze from Victoria Harbour blew past with a salty tang, ferries crisscrossed the water, and the sound of sirens could be heard faintly.

Inside the HKEX hall, before a red backdrop, the golden words "Xingchen Motors Listing Ceremony" shone brightly. A massive electronic screen scrolled the Xingchen Motors logo—a silver star with flowing lines beneath it, symbolizing speed and technology. Reporters had already set up their cameras, flashes were going off incessantly, and traders in red vests bustled about. The air was thick with excitement and tension.

At 9:58 AM, the side door opened, and a group of people walked into the hall.

Walking at the front was Su Chen. He was thirty this year, wearing a deep blue custom suit, a white shirt, and a silver tie, his hair meticulously styled. A faint smile played on his lips. Five years of navigating the business world had added a touch of steadiness and composure to this young man's eyes. Behind him followed Xingchen Motors CEO Gu Yanting and the newly appointed Executive Vice President Zhou Qingyu. Gu Yanting had specifically worn a red tie today, while Zhou Qingyu wore his usual dark gray suit. The two walked side by side, their auras distinct yet complementary.

Su Chen walked to the backdrop, stopped, and scanned the hall. Reporters clicked their shutters frantically, traders stood on their tiptoes to catch a glimpse, and even the usually stoic HKEX staff had smiles on their faces.

The Chairman of the HKEX came forward to shake hands with Su Chen: "CEO Su, congratulations. The listing of Xingchen Motors is the biggest event for the HKEX this year."

Su Chen responded with a smile: "Thank you. Xingchen Motors standing here today would not be possible without the support of all sectors."

At exactly ten o'clock, the bell was about to be rung. Su Chen, Gu Yanting, and Zhou Qingyu stood before the gong. It was a massive bronze gong hanging on a red frame, gleaming gold, symbolizing the fairness and transparency of the market. Su Chen picked up the mallet and handed it to Gu Yanting and Zhou Qingyu: "Let's do it together."

Gu Yanting took the mallet and said with a smile: "CEO Su, once this gong sounds, Xingchen Motors will be a public company."

Zhou Qingyu stood to the side, his gaze deep: "A two-trillion valuation and 200 billion in financing. Three years ago, who could have imagined this?"

Su Chen shook his head: "Three years ago, I didn't even imagine it myself."

Ten o'clock sharp.

The three of them struck together, and the mallet fell.

*Gong—*

The resonant sound of the gong echoed through the hall, penetrating the glass curtain walls and carrying out over the waters of Victoria Harbour. On the electronic screen, Xingchen Motors' stock code lit up, the opening price jumped by 20%, and the trading volume instantly surpassed ten billion. The traders cheered, applause surged like a tide, camera flashes became a blur, and reporters spoke rapidly into their cameras, broadcasting the real-time market situation.

Su Chen took a step back, watching the numbers jump on the screen. Gu Yanting walked to his side and lowered his voice: "CEO Su, it opened up 20%; the market value is now 2.4 trillion."

Su Chen nodded without speaking. Zhou Qingyu also walked over, and the three of them stood side by side, watching the constantly fluctuating numbers.

After a long while, Su Chen said softly: "Two trillion is just the beginning. Xingchen Motors' goal is to surpass Toyota."

Gu Yanting and Zhou Qingyu looked at each other and smiled.

In the hall, the applause continued. Outside the window, on the waters of Victoria Harbour, a massive cargo ship slowly passed by, its long siren sounding like an accompaniment to this grand feast.

The next day, Shenzhen.

At Xingchen Technology headquarters, in Su Chen's office, Lin Wan stood by the window watching a live broadcast on her phone. On the screen, Su Chen was being interviewed by reporters alongside Gu Yanting and Zhou Qingyu, flashes flickering as he smiled composedly. She smiled, turned off her phone, and looked out the window.

The surface of Shenzhen Bay shimmered, and the Hong Kong skyline on the opposite shore was faintly visible through the mist. A cargo ship slowly passed, the Xingchen Motors logo printed on its containers—that silver star, shining brightly in the sun.

The same day, Brussels.

Margrethe Vestager sat in her office—more accurately, the third-floor office that had shrunk by two-thirds. she watched the news about Xingchen Motors' listing on her computer screen, remaining silent for a long time. A two-trillion market value, 200 billion in financing, and annual sales of 4.8 million units, surpassing Tesla to become the global champion in pure electric sales.

Her phone vibrated with a text message from her "old friend" in the United States: "Did you see? Xingchen Motors has gone public."

Vestager stared at the screen and did not reply. She turned off her phone and looked out the window. The Brussels sky was gray, and a fine drizzle was falling. She suddenly remembered three months ago, standing under the crystal chandeliers of the press conference hall, announcing the investigation into Xingchen with such high spirits. At that time, she thought she was defending the rules; only now did she realize that rules are used to protect the strong, and she had chosen the wrong side of strength.

The same day, Cupertino, California.

Tim Cook sat in his office, looking at the news of Xingchen Motors' listing, his expression grave. He dialed a number, waited a moment, and the call connected.

"CEO Su, congratulations. Xingchen Motors going public with a two-trillion market value is remarkable."

On the other end of the line, Su Chen's voice was calm and composed: "Thank you, Cook. Apple is also remarkable, three trillion US dollars."

Cook gave a bitter laugh: "Three trillion US dollars, but the European investigations are still ongoing. CEO Su, you refused to cooperate during our last call; can we talk now?"

Su Chen was silent for a moment: "Cook, once I've thought it over, we'll talk via video."

Cook nodded: "Alright, I'll wait for you."

Hanging up the phone, Cook looked out the window. The California sun was still brilliant, but in his heart, dark clouds loomed.

The same day, on a flight from Shenzhen to Beijing.

Zhou Qingyu sat in a window seat, looking at the sea of clouds outside. On his phone was the stock price trend of Xingchen Motors; it had closed up 28%, with a market value of 2.56 trillion. He thought back to when he had first taken over Red Flag three years ago—at that time, Red Flag's annual sales were less than 300,000, and it was mocked as a "nostalgia car." Now, Red Flag sold three million a year, and the merged Xingchen Motors sold 4.8 million, ranking among the top five globally.

A flight attendant walked over and asked softly: "CEO Zhou, do you need anything?"

Zhou Qingyu snapped out of it and smiled slightly: "A glass of water, please. Thank you."

The flight attendant nodded and left. Zhou Qingyu looked back out the window at the surging sea of clouds and the piercing sunlight. He suddenly remembered something an MIT professor had once said: "The automotive industry is the backbone of a nation. If the backbone cannot straighten up, the nation will never be able to stand tall."

Now, China's backbone had straightened up.