Chapter 118: 8% Shares, Ten Million Order Requests
Translator: Nyoi-Bo Studio Editor: Nyoi-Bo Studio
Everybody’s sight was focused on Chen Jin. He held his hands in front of his nose and said, “I plan to buy 2.5 billion worth of your company shares via capital injection and become one of your shareholders.”
2.5 billion! After hearing this number, Zhang Wei Jin and others from Zhong Xin International looked at each other. All of them were beyond excited.
“Mr. Zhang, this amount of investment is no small amount, our company’s market value is now at 32 billion; with this 2.5 billion of funds, it means that our shares will rise significantly by 7.8%!” Executive CEO Khoo Ci Feng said, calculating in his mind.
“Yes indeed, our company’s stock price has been on a constant downturn due to the market condition overall. If we announce Xing Hai Technologies’ large capital injection and boost the investors’ confidence, our market value could very well break 36 billion.” As a listed company running on pure capitalism, Zhong Xin International could issue stocks on the stock market for financing purposes. They could also accept funding from other investment agencies. Being a listed company, Zhong Xin International had to put their investors’ benefits into consideration in their every action. They had to come out with statements beyond satisfactory levels and be responsible towards their investors and capital funds; this urged them to improve their performance target. This put weight on them, but at the same time propelled them towards greater achievements.
For Chen Jin, investing in Zhong Xin International was not a whim, but a part of the medium and long-term layouts and plans he had in mind. The 2.5 billion investment funds did not originate from Xing Hai Technologies financial account, but from the two mysterious bank cards he had on hand. The cards had a combined 2.546 billion. This money was earned after “selling” all 3.2 million brushless motors and 5.5 million pairs of mechanical joints that he and the human replica robots transported. Every single cent was hard-earned money! But looking at the account balance that was getting bigger and bigger, Chen Jin was afraid that he would be targeted by the regulatory authorities and asked to pay taxes. The money did not feel safe. The best way to resolve this would be to quickly spend all the money! By then, one of his worries could be lifted.
The money was most suited to be used for investments. Moreover, last time when the movie director s.h.i.+ Xiao Tao came to him, from the 100 million Chen Jin invested in her movie, 50 million was from his personal account, which was earnings from the Forever Jewels store. The other 50 million originated from one of the mysterious bank cards.
Now, the money in all three bank cards was completely depleted. After completing this investment, Chen Jin would be left with no more than 500 thousand in cash. The money in Xing Hai Technologies’ financial account was intact, and therefore the company’s operations were normal and unaffected.
Then… what was it that Chen Jin wanted from investing 2.5 billion in Zhong Xin International? “8% of your company’s total shares, a voting position in the board of directors, and rights to partic.i.p.ate in strategy conferences,” said Chen Jin.
“Mr. Chen, we will still have to consider this. Based on our market value, your demands are a little too high. 7.5% to 7.8% is still within our acceptable range. 8% might be feasible but for our current market value, the investors and stockholders will not be happy if they know about this. As for voting positions in the board of directors, every shareholder that holds more than 3% of the company’s shareholding ratio will get a position, so you can even have two seats if you so decided to. Xing Hai will also have the rights to partic.i.p.ate in strategy conferences and even in Zhong Xin International’s strategic planning conference where you can propose your ideas and suggestions.”
Mainly it was still about the shareholding ratio, the criteria for an 8% shareholding ratio was not met. If they were to add another few tens of millions, 8% would not be a problem. However, Chen Jin had no intentions of increasing the amount of investment, and yet he came out with two demands consecutively. This left Zhang Wei Jin and his party’s mouths wide open in shock.
“Mr. Zhang, if we were to use the money as a long-term investment with a no-return policy for a 10-year duration and retain it as basic stock, could you possibly give us more shares? I heard that your company had already mastered the process technology of the 14-nano chip and is capable of producing the mobile device chip and the AI chip. It so happens that at Xing Hai Technologies, our Wa-wah robots will need tens of millions of CPU chips in the future. Another of our product under development would also need similar amounts of CPU and AI chips. If your company can sufficiently supply our demands on these chips, Xing Hai has the intentions to issue our first batch of 10 million orders. I would like to know whether your company will be capable of doing this. If you are, all future orders from Xing Hai Technologies on chips will be yours. We intend to cooperate with Zhong Xin in the long-term.”
Basic stocks with a 10-year no-return duration. 10 million chip orders! Guaranteed long-term strategic partners.h.i.+p. In exchange for Zhong Xin International’s 8% shares. What was still there to hesitate and consider? Zhang Wei Jin had a deep breath, stood up, and announced, “Mr. Chen. Zhong Xin International’s production for the 14-nano chip has a conformity rate of above 95%, we are capable of supplying your company’s chip orders! And so as all orders subsequently! I’ll agree on the 8% share you demanded on behalf of all the stockholders! Mr. Chen, I wish us good cooperation and may we achieve excellence together!” He extended his broad right-hand palm towards Chen Jin.
“May we have a pleasant cooperation.” Chen Jin stood up and shook hands with him, smiling. Strategic partners.h.i.+p, achieved!
After the meeting, the higher-ups of Zhong Xin International were very excited as they had a heated discussion amongst each other.
“Marvelous! Huge investments, tens of millions of chip orders, long-term strategic partners.h.i.+p, all of these will benefit us on a great scale!”
“It can be foreseen that Xing Hai Technologies will be our major client! If we get all the chip orders from Xing Hai Technologies, our company earnings will have at least a 30% surge.”
“With so much great news, our company share value will rise by at least 10%, right?”
“10%? Absolutely more than that, three raising limits at least!”
“We have finally met our moment that will only occur once in a decade, we must secure our big client Xing Hai Technologies!”
…
On the way back to the office, some executive personnel expressed their doubts and puzzling thoughts.
“Mr. Chen, Zhong Xin international is only fourth place in the chip foundry enterprise worldwide. They are far behind Mossy Electrics, Samsin, and Intel, which are at the top three positions and do not possess even 6% of market shares. Their process technology has a one- to two-generation gap from the other 7-nano and 10-nano chips, why don’t we seek partners.h.i.+p with those who have better technical capabilities?
“Mr. Chen, you gave this much money and order requests for outdated chips, can we really make good products out of this? I bet customers won’t buy it either.” This created discontent among them, they thought their boss was too young, and too…
“Shut up, both of you!” Chen Jin glared at them both. “Get lost if this can’t get through you!” He turned his head as his sight swept across everyone and he said, “I do not want to repeat, and I have made myself very clear, first, the learning machine is not like a mobile phone, it is rather bulky, the 14-nanochips performance will definitely suffice! Second, I do not want to get choked by anyone, n.o.body chokes Xin Hai Technologies! Finally, the 8% share Xing Hai holds in Zhong Xin International might increase in the future. I do not wish to hear anyone saying who should be a better partner or who we should give our orders to. If someone says these foolish words again, p.i.s.s off!”
“Yes sir.”
“Yes sir.”
Both of their heads shrunk in and they never spoke a single word again. The other executives nodded their heads. Their young boss might be immature, but this partners.h.i.+p was definitely him being farsighted. Besides, it was really patriotic.