85: Chapter 85 Dawn Counterattack

August 6, 8:00 AM, International Conference Hall, Galaxy Hotel, Shenzhen.

The hall, capable of holding five hundred people, was packed to capacity, with aisles crowded with cameras and reporters. There was a sense of suppressed excitement in the air, like the silence before a storm. On the backdrop, a concise and powerful bold title read: "**Upholding Value, Investing in the Future — Spark Technology Major Matters Briefing**".

At exactly 8:00 AM, the side door opened.

Without a team of executives surrounding him or PR personnel guiding the way, Su Chen walked onto the podium alone. He wore the same dark gray shirt as yesterday, sleeves casually rolled to his elbows. His face looked slightly tired, but his eyes were clear and sharp, and his steps were steady.

He stood still in the center of the podium. Without an opening statement or pleasantries, he directly faced the dense crowd below and the non-stop flashing lights.

"Yesterday," his voice carried clearly through the microphone across the hall, "Spark Technology's market value decreased by 200 billion rmb during six hours of trading."

Getting straight to the point, facing the wound head-on. The audience was silent, with only the clicking of camera shutters.

"Many friends, from last night until now, have been asking me: Su Chen, are you panicking?" Su Chen paused, his gaze sweeping over the reporters and analysts in the front row, as well as the investors in the back holding up phones for live streams. "I say, I am."

This answer was unexpected, and a slight commotion broke out in the audience.

"But what I'm panicking about is not the 200 billion drop in stock price." Su Chen's voice rose a notch, carrying a suppressed heaviness. "I'm panicking because, even today, when a Huaxia enterprise truly makes some achievements in chip, in batteries, and in high-end manufacturing, there are still people who choose not to believe at the first opportunity. Why can a report full of loopholes and half-truths make so many people waver? I'm panicking about how much confidence we actually have in our own people and our own industries."

These words were like a heavy hammer, striking the hearts of many. This wasn't a business defense; it was a soul-searching question.

"I have carefully read that report from Gray Rhino Capital." Su Chen shifted the topic to specifics. "It says that the mass production yield rate of our 28nm 'flint one' chip is only 65%."

The large screen behind him lit up, displaying a chart filled with data points. "I can now announce the actual monthly average yield data for the Flint chip factory from July 1 to August 15: **82.3%**. Furthermore, this number has increased by more than 1 percentage point every month over the past forty-five days." The chart curve rose clearly, with data refreshing in real-time, finally settling on "Estimated yield for current batch (early August): 83.1%."

"The report also says," Su Chen continued, his tone calm but powerful, "that Hongqi Automobile is Spark's 'financial black hole' and will swallow 20 billion in future cash flow."

The screen switched to a video shot on a phone but with a steady frame. The timestamp was "2017.08.15 23:17," and the location was the assembly workshop of the Changchun Red Flag Smart Factory. On the production line, the body frame (body-in-white) of a pure white car model moved slowly under the precise coordination of robotic arms, being assembled and welded. The video finally froze on a clear laser-engraved serial number on the body: "H9-0001".

"At 11:17 PM last night," Su Chen looked at the screen, "the first body-in-white of Red Flag's new generation electric sedan, the car model, officially rolled off the line at the new Changchun factory. This is not a model, not a prototype; it is the starting point of mass-produced cars about to enter the market."

He turned around to face the audience: "Next, I will announce several decisions made by the Board of Directors of Spark Technology."

The first line of large text appeared on the screen:

"**First, the share buyback plan: Based on firm confidence in the company's long-term value, the company plans to use its own funds to buy back company shares through centralized competitive bidding within the next six months. Total buyback funds: not exceeding 20 billion rmb. Maximum buyback price: not exceeding 2,200 rmb/share.**"

The first wave of applause broke out from the audience, but it was relatively restrained.

"**Second, the interim dividend plan: To actively reward shareholders and share the fruits of development, the company's 2017 interim profit distribution plan is—a cash dividend of 45 rmb (tax included) for every 10 shares, which is 4.5 rmb per share. The total estimated cash payout is approximately 4.725 billion rmb, which will be completed before September 15.**"

The applause grew more enthusiastic. Announcing a high dividend after suffering a short-selling crash was the most direct display of healthy cash flow and earnings quality.

Su Chen waited for the applause to die down slightly, took a deep breath, and stated the most crucial part:

"**Third, the 'flint plan'—a hundred-billion-level private placement.**"

An animation of a burning Flint appeared on the large screen, eventually settling into the outline of a chip. Below was the detailed plan:

- **Issue Price: 2,000 rmb/share** (an 11.11% premium over yesterday's closing price)

- **Number of Shares Issued: 50 million shares**

- **Total Funds Raised: 100 billion rmb**

- **Use of Funds: Entirely for the '14nm and Below Advanced Process chip Full Industry Chain Independent Breakthrough Project'**

The audience erupted instantly! An issue price of 2,000 rmb? After a crash, not only was there no discount, but it was being issued at a premium? And raising 100 billion? This was simply insane!

But Su Chen's next words sent the room into even deeper shock.

"This 100-billion 'flint plan' is not a public offering to the market." He slowed down his speech to ensure every word was heard clearly. "Instead, it has already secured firm subscription intentions from five **strategic investors**."

The screen switched, and five national emblems and logos slowly emerged, with subscription amounts noted below:

1. **SASAC National Integrated Circuit Industry Investment Fund (Phase II)**: 30 billion rmb

2. **Huawei Investment Co., Ltd.**: 15 billion rmb

3. **Shencheng Metro Group (representing Shenzhen SASAC)**: 15 billion rmb

4. **Singapore Temasek Holdings**: 20 billion rmb

5. **Saudi Arabia Public Investment Fund (PIF)**: 20 billion rmb

**Total: 100 billion rmb.**

Silence.

A silence so profound you could hear a pin drop, lasting for five seconds.

Then, the applause, gasps, and the sound of rapid camera shutter fire almost blew the roof off the conference hall! This was not just financing; this was the birth of a top-tier strategic alliance! Led by the national team, followed by industry giants, and supported by two of the world's top sovereign wealth funds!

Su Chen raised his voice amidst the clamor: "This is not an ordinary financing! This is the national team, industrial capital, and international long-term capital using their most cautious and precious hard cash to cast a vote of confidence for the future of the 'Huaxia chip'! What they believe in is not just the company Spark, but the historical process of the independent rise of the Huaxia semiconductor industry!"

Entering the Q&A session, the atmosphere became even more heated.

The first to get a chance to ask a question was the chief reporter for Caijing Magazine, whose question went straight to the heart: "President Su, according to our calculations, after this private placement is completed, your personal shareholding will be diluted from 67.88% to approximately 64.79%. Does this mean a weakening of your control over the company? Will the five new strategic shareholders affect the independence of Spark's future decision-making?"

Su Chen was clearly well-prepared: "First of all, even after dilution, the voting rights I hold personally remain well above two-thirds, giving me absolute control over the company's major strategic direction and daily operations; there is no doubt about that. But what I want to emphasize is—"

He pointed to the five investors on the screen: "By introducing these shareholders, **a tiny change in control figures is exchanged for a comprehensive upgrade of Spark's strategic ecosystem**. The 30 billion from the National Integrated Circuit Fund means Spark's chip strategy is officially incorporated into the national-level overall semiconductor industry layout, gaining full support in policy, talent, and technical cooperation. Huawei Investment's 15 billion brings the possibility of deep synergy in 5G communications and the smart terminal ecosystem. The 15 billion represented by Shencheng Metro Group is a firm endorsement from local core resources for a star technology enterprise. And the combined 400 billion from Temasek and Saudi PIF—" Su Chen paused, "this represents recognition from the world's top long-term capital for the rising trend of Huaxia technology and Spark's own technical route. Their global vision and resource networks will provide immense help for Spark's future internationalization. Therefore, this is not dilution; it is the introduction of strategic allies and the sublimation of the company's value."

The second question came from a Reuters reporter, with the characteristic sharpness of foreign media: "President Su, Saudi Arabia's sovereign fund PIF previously focused its investments mostly on energy and European/American tech companies. Does this 20 billion rmb investment in Spark, especially at a sensitive moment when your company is being shorted, mean that international capital, represented by PIF, is re-evaluating the investment value of Huaxia semiconductors against the backdrop of China-US tech competition? Is this a form of 'taking sides'?"

[part:gemini-3.1-flash-lite]

The questions were sharp, involving geopolitics.

Su Chen answered cautiously and powerfully: 'The decisions of PIF and other excellent international investment institutions are based on professional investment analysis and long-term value judgment. They are optimistic about the huge potential of the Chinese semiconductor market, the innovation capabilities of Chinese engineers and scientists, and companies like Spark Technology that have proven their technical strength in market competition. This reflects the global capital's pursuit of technological progress and industrial opportunities, rather than simple

choosing sides.

China always adheres to opening up and cooperation, and Spark Technology also welcomes all investors who recognize our long-term value to share the dividends brought by technological progress.'"

The sharpest question was saved for last. A CNN correspondent in China took the microphone, aiming directly at the core of the short-selling report: 'Mr. Su, regarding the short-selling report's allegations about Hongqi Automobile's financial risks, your response using only a video of a white body-in-white coming off the line seems unconvincing. Can you disclose the detailed financial model of the Hongqi project, especially the real costs of the

Xinghan

platform R&D and factory renovation? How can you prove it is not a

financial black hole

driven by your personal sentiment?'"

The eyes of the entire audience were focused on Su Chen. He did not answer directly but signaled to the staff: 'Connect to the live video feed from Changchun.'

The big screen switched, showing Zhou Qingyu, CEO of Hongqi Automobile. He was standing in a room resembling a command center, with huge real-time factory monitoring screens behind him.

'I am Zhou Qingyu, CEO of Hongqi Automobile.' He spoke into the camera, his voice resonant. 'Regarding costs, I can responsibly say that all our major investments have strict budgets and dynamic monitoring. It is a fact that the

Xingyao

platform required huge investment, but in return, Hongqi now possesses a pure electric platform with full-stack self-developed underlying architecture, industry-leading smart cockpit systems, and rapidly iterating autonomous driving capabilities. These are the core barriers for competition in smart electric vehicles over the next decade.'"

He turned sideways, pointing to the monitoring screen behind him, which displayed real-time footage from different workshops in split screens: 'As for the factory, we did not just renovate the production line; we renovated the production paradigm. From traditional manufacturing to intelligent manufacturing, from meeting domestic needs to benchmarking against the highest global standards, these investments are costs in the short term, but assets and capabilities in the long term. This so-called

black hole

is being transformed, through the efforts of all our Hongqi people, into a

gravity field

that drives the Chinese automotive industry upward and attracts global technology and talent!'"

Zhou Qingyu concluded with a resonant tone: 'We are not afraid of looking at data, nor are we afraid of questions about details. After the press conference, we will open more detailed business materials to qualified investment institutions. We let our products and the market do the talking.'

The connection ended. Su Chen took over: 'Hongqi carries not just the revival of a commercial brand, but an industrial mission. Its value requires a longer time dimension to be examined and verified. We have patience and confidence in this.'

At 9:30 AM, the A-share market opened.

Spark Technology's stock price jumped to 1890 rmb, an increase of 5%. The panic was powerfully reversed overnight.

After 10:00, buying orders continued to pour in, the stock price quickly turned red, and fluctuated upwards all the way.

Around the midday break, the announcements from two major international investors were like two reassurances, released one after another:

First, Temasek Holdings released an announcement: '...has signed a non-binding investment intention with Spark Technology, planning to subscribe for approximately 20 billion rmb worth of its private placement shares. This investment is based on our optimism about the long-term trends of the global semiconductor industry and China's innovation potential in this field...'

Immediately after, the Saudi Public Investment Fund (PIF) also issued a brief statement: 'PIF confirms its intention to participate in Spark Technology's

flint plan,

with an investment of 20 billion rmb. This move is in line with PIF's strategy of investing in transformative industries that shape the future global economy, and is also an important part of its layout in the Asian technology sector.'"

When the afternoon session opened, the stock price rose again.

At 15:00, the market closed, with the stock price fixed at 1950.28 rmb. It surged 8.33% compared to yesterday, recovering nearly 80% of yesterday's decline. The single-day turnover increased to 68 billion, but the turnover rate did not soar abnormally, indicating that the selling pressure had been effectively digested. More importantly, it did not touch any margin call liquidation lines during the trading session, and the alarm was lifted.

After the market closed, CITIC Securities analysts held an emergency internal conference call, and the voice of gold analyst Li Ming echoed online:

'Today, Spark Technology's three measures, buybacks and dividends, are the

tactics

(shu), which are standard actions to stabilize morale. The true

strategy

(dao) is the 100 billion private placement and the lineup of five major strategic shareholders!'"

'The National Integrated Circuit Fund led the investment with 30 billion, which is the most important signal! This means that Spark Technology's chip strategy has been upgraded from a corporate action to an important part of the national strategy. In the future, in terms of equipment procurement, technical cooperation, talent introduction, etc., Spark Technology will receive unprecedented support, and its fault tolerance and resource guarantee capabilities for technical breakthroughs will be completely different!'"

'The participation of Temasek and Saudi PIF is equally significant. This represents the substantive optimism of international ultra-long-term capital—they are not looking at the financial reports of next year or the year after, but the trends of ten or twenty years—towards China's technological self-reliance process. Their endorsement can greatly offset the negative impact brought by overseas short-selling reports, and even attract more international long-term funds to pay attention to China's hard technology.'"

'Looking at the equity structure again, after the additional issuance, Su Chen's shareholding is still over 64%, and the control is Bedrock. The five major strategic shareholders hold a total of only 6.74%, which is a classic structure of

strategic investment, financial investment, and no seeking of control.

This not only introduces resources and endorsements but also ensures the independence and efficiency of the company's decision-making. This structural design is very brilliant!'"

At the investment research meeting of ',

Jinshi Capital,

Chen Jianhua drew a more vivid diagram for his team:

'Do you see it clearly? The 50 million shares issued this time are not ordinary stocks; they are

golden shares,

they are

circle of friends

tickets.'"

'The National Team (Integrated Circuit Fund) wants industrial chain security and technological breakthroughs; what they bring is policy and ecosystem.'"

'Huawei wants ecological synergy from chips to terminals to the cloud in the future era of the Internet of Everything.'"

'Shencheng Metro Group wants the tax, employment, and urban industrial upgrading brought by local core technology giants.'"

'Temasek and Saudi PIF want the long-term capital returns and global technology layout brought by China's technological rise.'"

'They are buying at a price of 2000 rmb, not buying yesterday's Spark Technology, but a seat on the chariot of China's semiconductor rise for the next decade. The implicit value brought by this shareholder structure is much higher than simply raising 100 billion in cash!'"

After the market closed, at Spark Headquarters, Shen Nanpeng reported the detailed progress to Su Chen:

He paused and mentioned a detail: 'In addition, the Saudi PIF side proposed during the intention communication that they hope to send a

board observer

to the Spark Technology board after the investment. They emphasized that this is not an official board seat, does not participate in voting, and only hopes to have the right to attend board meetings to understand major progress in core businesses such as chips, so as to better conduct post-investment management and value assessment.'"

Su Chen thought for a moment and nodded: 'Acceptable. But the strictest non-disclosure agreement must be signed, and the scope of attendance must also be clearly limited. Core secrets such as specific process details of chip technology and customer information must be isolated. We are open to cooperation, but the core moat must be firmly guarded.'

He walked to the whiteboard, looking at the newly updated, complex equity structure chart. His gaze lingered on the line ',

Su Chen: 64.79%

for a while.

'From 67.88% to 64.79%,' he said softly, a smile appearing at the corner of his mouth. 'It's 3 percentage points less, but Spark Technology's

circle of friends

has gone from Shenzhen to the capital, to Singapore, and to Riyadh. We are carrying the banner of the

flint plan,

and standing behind us are national will, industrial partners, and global visionary capital.'"

He turned and looked out the window. The sunset was falling, gilding the city with a golden edge.

'This battle is not over yet. But today, we not only held our ground but also planted our battle flag in a higher place. The Long March of chips has only just truly begun.'

After additional issuance (total share capital 1.1 billion shares):

Su Chen: 712.74 million shares → 64.79%

Spark Trust: 95.025 million shares → 8.64%

SASAC: 67.5 million shares → 6.13%

Huawei Investment: 27.45 million shares → 2.49%

Shencheng Metro Group: 37.53 million shares → 3.41%

Singapore Temasek: 10 million shares → 0.91%

Saudi Sovereign Fund: 10 million shares → 0.91%

Market Circulating Shares: 142.485 million shares → 12.72%