Reborn since 1993

Chapter 1353 A Bloodbath Caused by a Name

Chen Guoqing certainly wanted to accept the offer from Chitu Company. If he didn't, it would be hard to say whether Shanghai Phoenix could even keep its listed status.

However, while it is true that Chen Guoqing is the head of Shanghai Phoenix, he is also a professional manager. More importantly, Shanghai Phoenix is ​​a state-owned factory.

Not only Phoenix in Shanghai, but also another major bicycle brand in Shanghai, Forever, and the third bicycle brand, Flying Pigeon in Tianjin, are all state-owned factories.

Phoenix and Yongjiu are both listed companies and share the same parent company, Shanghai Light Industry Group!

Shanghai Light Industry Group is a behemoth in China's light industry, occupying half of the domestic market. At this time, its status is comparable to Unilever. Phoenix and Forever are just two brands under Shanghai Light Industry Group.

Later generations may not have a concrete concept of the status of Shanghai's light industry, and feel that the most powerful are the state-owned assets departments in various places.

But in those days, state-owned assets did not have such a strong position. Local light industry groups and heavy industry groups were local bigwigs, or even behemoths.

In addition to these two brands, Shanghai Light Industry Group also owns a whole host of other brands, including Shanghai Jahwa, Lao Feng Xiang, Baiyu, Maxam, Huafeng Shares, Shanghai Merlin, White Cat, White Rabbit Milk Candy, Bright Dairy, and many more.

However, these brands are not doing well now, and many of them are on the verge of collapse, just like Phoenix bicycles.

This situation led to a few years later when Shanghai's light industry sector transferred a large number of its assets to Shanghai's state-owned assets.

"Manager Guan!"

Chen Guoqing stated frankly, "Phoenix Company attaches great importance to its cooperation with Chitu Company."

I hope that this collaboration between the two sides can become a beautiful story, just like the cooperation between Shanghai Radio Factory No. 3 and Feiyan Technology!

"However, whether Chitu Company can acquire a stake in Shanghai Phoenix is ​​not a decision I can make; I need to report to the parent company, Shanghai Light Industry Group!"

Chen Guoqing certainly hoped that Shanghai Phoenix could cooperate with Chitu, but the issue of equity was beyond his control and might even ultimately involve the final decision of the Shanghai municipal government.

When Guan Zhenming heard Chen Guoqing's words, he knew that he was not trying to shirk responsibility, but that he was truly not qualified to have shares.

"Chitu Company does not intend to take control of Shanghai Phoenix Company, but hopes to become the second largest shareholder!"

"Shanghai Phoenix has other businesses besides bicycles, which Chitu does not want to interfere with or intend to get involved in, but... when it comes to the electric bicycle business, we hope that Shanghai Phoenix can cooperate with Chitu!"

Guan Zhenming also made his point clear: the Phoenix brand is quite well-known in Shanghai, and if it were taken away directly, there would probably be a lot of opposition.

Guan Zhenming was indeed somewhat interested in the plaque, but he wasn't determined to take it.

As long as Shanghai Phoenix can fully cooperate with Chitu Company in the electric bicycle industry after it enters the market, that will be enough!

"What Chitu needs is comprehensive cooperation with Phoenix Company."

Not only does it need Phoenix Company to provide parts and OEM services for Chitu, but it also supports Phoenix Company's entry into the electric bicycle industry in the future.

But the prerequisite is that Phoenix Company is willing to accept Chitu's investment and cooperate with Chitu's strategic plans in the electric bicycle industry!

Upon hearing that Guan Zhenming was actually supporting Phoenix Company's entry into the electric bicycle industry, Chen Guoqing was already quite tempted.

Of course, there is a price to pay. Chen Guoqing knows that nothing in the world is without a reason. The so-called cooperation with Chitu Company is actually just Phoenix Company acting as Chitu's pawn in the electric bicycle industry, obeying its commands!

This is a complete loss of face for Phoenix, a long-established brand. But as the saying goes, now we ask Phoenix: do you want face or substance? Do you want high-mindedness or bread?
"President Chen, you should know that there's a huge mess at Chitu right now, waiting for me to handle. I only have three days in Shanghai this time!"

Guan Zhenming gave Chen Guoqing an ultimatum: three days. Chitu wouldn't be fighting a protracted war with Shanghai Phoenix; they simply didn't have time to waste on this mess.

Then, Guan Zhenming seemed to remember something and said to Chen Guoqing, "I hope Mr. Chen can give Chitu a reply as soon as possible."

"During this trip to Shanghai, I also need to visit another company!"

Guan Zhenming didn't say which company, but Chen Guoqing's expression had already changed.

Both are located in Shanghai, both are bicycle brands, and both are century-old brands. Who else could it be but Forever?
Forever Bicycles is having an even tougher time than Phoenix, having already been delisted and is just one step away from being delisted.

He was still struggling with whether Shanghai Light Industry Group would relinquish control and agree to let Phoenix Company relinquish a portion of its shares. He was also worried about whether the introduction of Chitu and the Dongke Group behind Chitu would have any impact on Shanghai Phoenix and his position as the head of the company.

But the neighboring company, Yongjiu, is about to be delisted and go bankrupt, so it probably can't care about all this.

Given any opportunity, Yongjiu Company will likely hold on tightly and won't let go.

As for Shanghai Light Industry Group, it was already overwhelmed by the permanent mess, let alone agreeing to give up a portion of its equity in the permanent company.

As long as someone is willing to take over, and the brand of Yongjiu can be preserved, as well as the jobs of the current Yongjiu employees, Shanghai Light Industry Group would be willing to sell its controlling stake in Yongjiu!

Guan Zhenming didn't care about the constantly changing expressions on Chen Guoqing's face; he hadn't lied to Chen Guoqing.

After talking with Chen Guoqing, he did need to go to Yongjiu Company. Not only Yongjiu, but also Feige Company in Tianjin, he also needed to make a detour to visit.

However, Forever Bicycles is facing an even worse situation than Phoenix, teetering on the brink of collapse. Forever's problem isn't the brand itself, but rather the livelihoods of its employees—that's the crux of the matter.

This would be a major problem for other companies, but it's not a problem for Chitu.

If we really want to place permanent employees, we need to conduct a screening. Those who are willing to give up their status as employees of state-owned factories and continue to work instead of just going through the motions can be transferred to Chitu. Chitu can then establish a production base in Shanghai to supply the Yangtze River Delta city cluster.

What, you're worried that Red Hare can't handle so many staff?
One of Dongling High-Tech's three major production bases is located in Pudong, Shanghai. That production base has been expanding, and unless two or three hundred thousand people suddenly appear all at once, Dongling's Shanghai production base really can't accommodate them.

Otherwise, it wouldn't be a problem at all for Dongke's Shanghai production base!
If possible, they even hope to acquire the three major national brands of bicycles in the era of Phoenix, Forever and Flying Pigeon, as well as Chitu.

This is a risky move, but it could potentially lead to instant success. By leveraging the stores and sales channels of the three major bicycle brands, Chitu could directly establish a sales system covering the domestic market, saving Chitu five or even ten years of effort.

However, it's also possible that if you buy back three messes, these three major national brands will eventually all go out of business, and all the money you invested will be wasted.

In recent years, with the influx of foreign brands, how many time-honored domestic brands have gone out of business?
However, there are risks involved, but for Chitu, it's impossible to give up just because there are risks.

On Li Dashanren's side, a special fund has already been provided for Chitu to invest in the three major Phoenix brands, or to cooperate with the light industry group, state-owned assets and local municipal government behind them, so as to completely clear the obstacles for Chitu and An Dian to promote in the local area!
The money has already been allocated by the Dongke headquarters. Could it be that Guan Zhenming is afraid of failure and dares not do it? If so, he can forget about getting another penny from the headquarters!
After Guan Zhenming left, Chen Guoqing could no longer contain himself and went straight to the Shanghai Light Industry Group to report Chitu's cooperation requirements.

The initiative is no longer in Phoenix's hands. There are more than just these three bicycle companies that have fallen on hard times.

Faced with the olive branch extended by Chitu, countless bicycle companies would probably be scrambling to accept it, hoping to transform themselves into the most sought-after companies in the A-share market!

……

"Why the hell did it hit the daily limit down?!"

What exactly is Phoenix TV in Shanghai doing?

"I heard that the negotiations between the two sides broke down. Phoenix was unwilling to accept Red Hare's conditions, and Red Hare withdrew from the cooperation!"

"Damn it, is Shanghai Phoenix trying to mess with me? I've already thrown tens of thousands of yuan into it!"

"Those little punks in management at Phoenix TV in Shanghai, don't they know what time it is? They still can't let go of their airs?"

"Shanghai-based Yongjiu Company's stock price has hit the daily limit. Rumors suggest that Yongjiu is negotiating a cooperation with Chitu, and may even be acquiring a controlling stake!"

Which stock has been the most talked-about in the A-share market these past two days?
Without a doubt, it's Shanghai Phoenix Company. Rumors are circulating that this will be the new Dongke concept stock. After the market opened today, Shanghai Phoenix immediately hit the daily limit.

But at noon, the market suddenly reopened, and then, to the astonishment of both gamblers and retail investors, it experienced a dramatic swing from limit up to limit down.

Xu Jiangwei stared in disbelief at the scene. To be honest, this kind of dramatic change in expression was something that had truly opened his eyes.

From Shanghai Phoenix to Shanghai Forever, it's dazzling. Every time there's a rumor today, these two stocks are shaken, and they go from limit down to limit up, and then from limit up to limit down again, killing retail investors like rivers of blood.

And all of this was caused by the name of Dongke concept stock. The influence of Dongke concept stock in the A-share market was fully demonstrated through these two stocks!

Looking at this scene, Xu Jiangwei felt that it was like a reshuffling of cards, but the reshuffling was too ruthless. It seemed to be breaking the mentality of the retail investors in the two stocks and making them spit out all their chips.

Gritting his teeth, Xu Jiangwei decided to take a gamble and bought 60,000 yuan worth of Shanghai Phoenix and Shanghai Yongjiu stocks at the daily limit down price.

The next day, when the market opened, Xu Jiangwei was dumbfounded to see two stocks that were both stuck at their daily limit down.

This situation continued until the third day, when Xu Jiangwei stubbornly endured a 20% loss on Phoenix in Shanghai.

At this time, the financial sections of Tianya Forum, China.com, and the financial news on the four major portal websites, Sina, were all pessimistic about these two stocks.

Even financial programs and securities experts on television have spoken out, demanding a boycott of the unhealthy trend of blindly following the hype surrounding Dongke concept stocks.

Given this atmosphere of public opinion, it's easy to imagine the sell-off of the two Shanghai-listed Phoenix stocks. It was as if retail investors were fleeing en masse, with both stocks being heavily suppressed by hundreds of thousands of sell orders.

Seeing this scene, Xu Jiangwei's face turned green with embarrassment.

With the market closing time fast approaching, Xu Jiangwei shook his head helplessly. He was prepared to accept his fate and shut down his computer; he was afraid that watching any longer would cause him heartache and lead to a heart attack.

But at that moment, he saw that the huge sell orders for Phoenix in Shanghai were being absorbed at an alarming rate.

In the blink of an eye, hundreds of thousands of sell orders were completely wiped out, leaving the entire A-share market in complete silence.

Then, the stock price of Shanghai Phoenix started to form a straight line, and subsequently, the stock price of Shanghai Phoenix was firmly locked at the daily limit.

After the market closed, Shanghai Phoenix and Shanghai Forever issued announcements one after another.

"Shanghai Phoenix's controlling shareholder, Shanghai Light Industry Group, plans to issue 1.28 million shares to Chitu Company at a price of 1.98 yuan per share. Starting today, Qilu Chitu Group will become Shanghai Phoenix's second largest shareholder with a 28% stake!"

(End of this chapter)