Reborn since 1993

Chapter 1354 Win by lying down
"Shanghai Phoenix and Qilu Chitu Group have reached a comprehensive strategic cooperation agreement!"

In accordance with the domestic custom that the fewer the words, the bigger the matter, the announcement released by Shanghai Phoenix was not long, but it was enough for everyone who saw it to know that Shanghai Phoenix was really about to make a big move.

The controlling stake in Shanghai Phoenix remains with Shanghai Light Industry Group, but Chitu has acquired a 28% stake.

Although not a major shareholder, it still ensured Chitu's say in Phoenix Company in Shanghai, so that it wouldn't be suddenly kicked out one day.

With this announcement, the century-old Shanghai Phoenix officially became a company under the Chitu Group, which also signifies that Phoenix bicycles' sales channels and stores will now be used by Chitu!
A new company affiliated with Dongke Group has officially emerged in the A-share market!

Although Shanghai Phoenix does not directly cooperate with Dongling High-Tech, with Chitu acting as a bridge, all parties recognize Shanghai Phoenix's Dongling-affiliated status.

When Xu Jiangwei saw the announcement, he was also shocked. He was certain that the public opinion in the past few days was indeed that the major players in the A-share market were massacring retail investors and韭菜 (a metaphor for easily exploited investors) in Shanghai Phoenix.

If Xu Jiangwei hadn't sensed that even if he placed an order, it wouldn't sell, he might have placed a sell order too, and then also been fleeced and ripped off.

But having survived the exodus, Xu Jiangwei knew that Phoenix TV's spring in Shanghai was just around the corner.

Having experienced the frenzy of Dongke Group concept stocks, Shanghai Phoenix needs to consider not whether it will be designated as a special treatment stock (ST) or whether it will face the issue of maintaining its listing status.

But is Shanghai Phoenix ready for such a huge order?
Is Chen Guoqing, the general manager of Shanghai Phoenix, prepared to be asked by reporters about his opinion on Shanghai Phoenix becoming a "demon stock"?

Xu Jiangwei was certain that these things would definitely happen. The fact that Dongke Department could become a highly sought-after institution in the A-share market was not undeserved.
The magic of Dongke concept stocks lies in their ability to shatter all previous preconceived notions, which is why so many institutions are frantically snapping up their shares!

Not only Shanghai Phoenix, but also Shanghai Yongjiu, a listed company in Shanghai, followed suit and issued an announcement.

Moreover, the content of the announcement was even more explosive than that of Shanghai Phoenix. Shanghai Yongjiu Company officially announced that its controlling stake had changed hands, but it was also a transaction with Chitu.

Shanghai Yongjiu announced that its parent company, Shanghai Light Industry Group, transferred 54% of its controlling stake in Shanghai Yongjiu to Chitu for RMB 5400 million.

This price seems much cheaper than the 253 million RMB that Chitu spent to acquire a 28% stake in Shanghai Phoenix.

However, according to the agreement reached between Chitu and Shanghai Light Industry Group, acquiring a controlling stake in Shanghai Yongjiu also means assuming Shanghai Yongjiu's debt of nearly 200 million RMB, as well as the issue of employee resettlement.

After calculating the costs, the actual price is not much different from the price of acquiring the equity of Shanghai Phoenix, and may even be a few cents more expensive.

However, if Chitu were to acquire permanent controlling interest in Shanghai, and even conceal its true intentions, it could easily change its shell company, don a permanent disguise, and start preying on retail investors in the A-share market...

Acquiring a controlling stake in Shanghai Yongjiu is good news for Chitu. With Shanghai Yongjiu involved, they don't have to worry about Phoenix Company suddenly turning against them one day.

But in reality, when Guan Zhenming went to talk to Yongjiu, he didn't expect that Shanghai Light Industry Group's attitude towards Yongjiu was one of complete fire sale, because if it dragged on any longer, Shanghai Yongjiu would really be delisted and go bankrupt.

If such a century-old brand were to fail, the Shanghai Light Industry Group would have to bear the responsibility.

In fact, even if Chitu hadn't appeared, Shanghai Light Industry was already looking for a buyer for Shanghai Yongjiu, preparing to sell it off.

Although both are forms of bankruptcy, going bankrupt under someone else's control and going bankrupt under the control of the Shanghai Light Industry Group are two different concepts...

As for the resettlement of permanent staff, according to the agreement reached between Chitu and Shanghai Yongjiu and Shanghai Light Industry, all the management of Yongjiu headquarters will be transferred back to Shanghai Light Industry Group, and Chitu will not want any of them.

As for the employees of Shanghai Yongjiu, it is based on the principle of voluntariness. After all, Shanghai Yongjiu will no longer be a state-owned factory. Those who want to stay will sign new contracts with Chitu, and those who do not want to stay will be transferred back to Shanghai Light Industry Group.

The remaining employees were retired permanent staff members in Shanghai. Chitu gave them a sum of money, and then the retirement pensions and benefits of those retired employees were taken over by the Shanghai Light Industry Group.

Only after all these agreements were reached did Chitu take over Shanghai Yongjiu.

The decision made by Shanghai Light Industry Group this time can be described as quite decisive and bold, but in reality, it was also out of necessity.

The Shanghai Light Industry Group has a lot of brands that have not performed well in recent years. If this cooperation with Chitu can bring about a turnaround, it will give the management of the Shanghai Light Industry Group a much-needed breather!
Within a single day, two major A-share companies underwent tremendous changes, both related to Chitu. Suddenly, Chitu's reputation on the A-share market soared.

Chitu first gained fame in China not for its electric bicycles, but for its reputation in the A-share market, which is probably something no one expected.

In Qilu, Chitu acquired a major A-share company and invested in a listed company in a single day, instantly transforming itself into one of the most "well-known" companies in Qilu nationwide!

This kind of fame is very beneficial for someone in a career; it can be written into their annual report and their resume.

The surprises that Chitu brought to Qilu were somewhat beyond Qilu's expectations. The electric bicycles that went on sale sold very well, and the company also acquired and invested in two major A-share companies. In today's world where economic development is the main focus, these achievements are enough to add a brilliant chapter to the career resumes of a group of people in Qilu, and may even loosen their career prospects a bit!

This change has made Yao Zhengru's "Double Ten Strategy" even more renowned, and has also increased the Shandong Provincial Government's attention to Chitu!
The major media outlets in Shandong Province immediately and vigorously publicized the achievements of Chitu Company. Many people, upon seeing Chitu's performance, couldn't help but think that a new industry giant might emerge in Shandong.

This is not only due to the expectations for Chitu, but also because of the supporter behind Chitu, Dongling High-Tech!
Judging from Chitu's current performance, Qilu has truly seen the value of the Dongling High-Tech brand.

The Dongke Group of companies is adept at making big moves, and Chitu has once again proven this!

What the Shandong provincial government is hoping for is whether Chitu will have the opportunity to establish a new industry and base in Shandong, just like Torch Group under Dongke!

Guan Zhenming stayed in Shanghai for much longer than expected, and even sought help from the headquarters of Dongling High-Tech, urgently borrowing a group of senior executives to go there.

Chitu needs to integrate Shanghai Phoenix and Yongjiu into its parts supply chain system, which requires the establishment of new production lines on both sides and the support of technology and engineers.

Only components produced that meet Dongling Hi-Tech's component standards can be included in the industrial chain; it's not something you can just do by shoddy workmanship.

In addition, it is necessary to start promoting AnDian Technology to Shanghai and other places, which requires a lot of manpower.

The rest is to take over Forever Bicycle Company completely. The plan for Forever Company is to enter the electric bicycle market while maintaining its position in the bicycle market.

However, the bicycles produced by Forever Company must not be the traditional 28-inch bicycles anymore. Instead, they should be mountain bikes, off-road bikes, folding bikes, etc. Moreover, they should be from a century-old brand and move towards high-end products. At least they need to have high-end products to make a good impression.

Qilu Chitu headquarters needs Guan Zhenming to oversee things. They just acquired two major A-share companies, and they also need to go to Tianjin to prepare to acquire Flying Pigeon Bicycles and build Chitu's all-star lineup in the electric bicycle industry!
In the future, Chitu will have three major brands: Phoenix, Forever, and Flying Pigeon. These brands will form a product line with various price points to compete with various rivals and maintain Chitu's competitive advantage.

Several major tasks piled up at once, keeping Guan Zhenming extremely busy – this was the impact of rapid expansion.

However, with the support of personnel from the headquarters of Dongling High-Tech, although chaos was inevitable in the short term, Guan Zhenming was able to barely hold the line.

……

Meanwhile, in the A-share market, Xu Jiangwei watched as two Shanghai-based companies, Phoenix and Yongjiu, which had been labeled as Dongke concept stocks, experienced a seven-day winning streak with limit-up price increases!

Although this wasn't the first time Xu Jiangwei had witnessed such a scene, he still couldn't help but sigh, "The Dongke concept stocks are truly monstrous!"

However, Xu Jiangwei truly reaped the benefits of this wave of speculative hype. In the past, when faced with such speculative hype surrounding Dongling High-Tech concept stocks, Xu Jiangwei would curse them, saying that people's hearts were no longer pure and that scoundrels were in power.

This time, Xu Jiangwei felt that the pie was really tempting. He did nothing but watch as the money he invested in these two stocks increased by 95%, almost doubling!

In fact, there's still no sign of the stock opening up, so it's estimated that getting a few more limit-up days wouldn't be a problem!
Looking at the doubled stock price, and then at Jinyang Electronics, another Dongke concept stock that he had bought but hadn't touched yet, which was constantly paying dividends, Xu Jiangwei couldn't help but feel that the days of easy wins were really lacking in excitement. Where was the thrill of buying other stocks, where he was always thinking about getting his money back...

In Pingyang, Li Dongling was also looking at the emails Guan Zhenming had exchanged with Chitu. He was well aware of Chitu's current activities.

There's no reason why money should be wasted. With this series of moves, Chitu has established an absolute advantage over its competitors!

That's right, Chitu now has competitors.

Li Dongling opened another document, which was sent by Wang Fangzhi, the head of the newly formed advisory committee.

The new advisory committee has already started working, establishing information channels both domestically and internationally, including collecting the latest industry news from Dongling High-Tech and its subsidiaries.

Chitu's performance in the electric bicycle market has inspired many people to enter the electric bicycle industry.

The newly emerging electric bicycle brands are mainly composed of people from the bicycle and motorcycle industries. The first brand to emerge is Luyuan!

Other brands include Taimei, Xinri, and Lvjia. Among them, Taimei may be renamed Emma in a few years.

However, these electric bicycle brands are currently small workshops, learning by trial and error, and in the short term, they simply cannot compete with Chitu.

It's hard to say what will happen in the future, but for now, if Chitu can't even handle these small workshops, then it's really too pathetic.

Putting aside the news about Red Hare, the news that had attracted Li Dongling's attention the most in the past few days was the news that had suddenly begun to circulate on the Internet and was also widely reported by various media outlets: Yahoo Chief Yang Zhiyuan had parachuted into Yanjing.

The arrival of the world's first internet figure caused a huge stir in Zhongguancun and the domestic internet industry.

The photo of Yang Zhiyuan with a group of people from Zhongguancun on the Great Wall has become a hot topic, with many internet enthusiasts even calling it a landmark event in the Chinese internet world!
(End of this chapter)