King of Capital

Gree's shareholders' meeting was scheduled for Friday. After the proposal was rejected, Dong Mingzhu immediately made all mental preparations and suspended the stock before the market opened on Monday on the grounds that there was no major news that would affect the company's market performance that had not been announced.

Therefore, on the same day, her scolding of small and medium shareholders and the news that the acquisition of Yinlong had encountered obstacles failed to have a substantial impact on the stock trend.

That afternoon, Dong Mingzhu was summoned to Meizu Technology, where she received a positive answer that she was "selected" by Xie Jingxing.

Just two days later, Gree Electric Appliances quickly resumed trading on Wednesday and issued an announcement acknowledging that the shareholders' meeting voted against the acquisition of Yinlong and the plan to issue additional shares through a private placement.

A major business decision that was not accepted by small and medium-sized retail shareholders from the beginning was rejected, and the negative news turned into positive news and the stock price rose accordingly.

During the lunch break, a lot of financial analysis content suddenly emerged. The overall tone tended to interpret that Dong Mingzhu and shareholders had serious differences on the company's development strategy, which would most likely affect the company's operating conditions. The stock price turned to decline in the afternoon.

Some well-known financial experts even used Vanke as an example to illustrate the dangers of Gree's extremely dispersed equity structure and the low shareholding ratio of management. They also emphasized that the growth rate of the white goods industry has slowed down, and it is necessary for industry leaders to find a second growth point for performance.

The first half of the article was relatively objective, but the second half tried to whitewash Miss Dong, and the public was criticizing him. I really want to ask if his Weibo account was stolen. It was definitely Song Dongye who did it!

Amidst this turbulent change of positive and negative factors, retail investors were driven back and forth like a flock of sheep. Gree Electric's stock price fluctuated widely for many days in a row, and the trading volume increased day by day.

Jingxing Group and Baoneng Group are quietly manipulating market sentiments by washing the market's cloth. Both parties have officially started the process of absorbing funds and increasing holdings in an effort to seize actual control of Gree!
"Secretary Zou, please stop trying to fool me. If I don't see Mr. Xie today, will you take the responsibility?"

Director Wang pointed at Zou Jingyi expressionlessly and questioned her sternly, saying that she had only been pretending to come a few times last month. Now that Xie Jingxing had made up his mind to join the game brazenly, everyone started to get serious. Who could a little girl stop?

"Okay, I know Mr. Xie is in there, go ahead and get busy."

Director Wang strode forward, and his accompanying assistant swiftly stepped aside to block Zou Jingyi. Another middle-aged man with a square face walked into the office silently alongside the former.

This person is the new chairman of Gree Group who has not yet been officially announced. Just a few months ago, he participated in the acquisition of Meizu Technology project by Jingxing Group as a member of the Economic Development Zone Management Committee. Now he has changed his position and is standing on both sides.

"Mr. Xie, I heard that you have been increasing your holdings of Gree shares these days. I have always wanted to explain this to you clearly."

Director Wang briefly exchanged pleasantries and got to the point: "I personally, Gree Group, and even the city have always recognized you. If Yao Zhenhua insists on having his own way, you are undoubtedly the candidate for the white knight."

"Since our last meeting, I have thought of many ways to communicate with him, hoping to persuade him to quit through negotiation."

He paused with a helpless look on his face and said, "The result is not ideal. Baoneng Group is increasing its holdings of Gree shares in large amounts. You should know the current situation."

"In this case, I think we need to be open and honest and talk about how to protect Gree Electric. The growth of this company has witnessed Zhuhai's decades of reform and opening up history. It is of great significance in all aspects of industrial economy and social value. It is absolutely not allowed to be lost for Zhuhai people!"

Director Wang expressed his attitude in a proud manner, saying that state-owned assets tend to cooperate with Jingxing Group, and at the same time will not allow either Xie or Yao to monopolize Gree.

Xie Jingxing listened patiently, looking at the new chairman of Gree Group with an undisguised gaze. If Dong Mingzhu was out, this person would probably take charge of Gree Electric.

Four years ago, state-owned assets tried to do this by first taking the position of group president and then entering Gree Electric's board of directors and gradually building up their business.

Unfortunately, the new chairman not only failed to pass the shareholder vote, but was also exposed by enthusiastic citizens for having a little wine. Bordeaux wine is a bit expensive, so he was defeated in the end...

Now that he has made a comeback, can he withstand Dong Mingzhu’s counterattack?

In any case, Ms. Dong’s claim that she is reluctant to spend lavishly on business trips is not just talk. At least she really treats Gree as her own child.

"Director Wang, I understand your feelings very well, but as I said in the last meeting."

Xie Jingxing retracted his gaze and responded slowly: "Jingxing Group is a financial investment company. The premise of talking about sentiment and ideals is that investment decisions are ultimately responsible to LPs, and the same is true for this increase in Gree shares."

"That's natural. To put it bluntly, there is the precedent of Vanke. If your shareholding increase is stuck in a deadlock, there is undoubtedly a great investment risk."

Director Wang said without getting discouraged: "We have a better choice. We can join forces to share the risk costs."

Currently, Gree Group holds 13.7% of Gree Electric Appliances, and Jingxing Group's latest shareholding ratio is 8.8%. The two parties have reached a relationship of acting in concert, and only need to increase their holdings by a total of 10% to establish relative actual control.

The former has the same logic as the cooperation with the Baoneng Group.

That is to say, Xie Jingxing has to increase his holdings by about 25% on his own, and he has to face the competition of Gree Group's 13.7% + Yao Zhenhua's increase in holdings. The example of Vanke is just before our eyes. There is no need to analyze which is more important, the cost of increasing holdings and the uncontrollable risks of a long-term stalemate.

"Hmm... Director Wang, it seems like you have some disagreements with President Dong?" Xie Jingxing hesitated.

Director Wang was a little embarrassed and explained: "It's mainly because of the different business concepts, but it doesn't affect our common pursuit of developing Gree Electric Appliances well."

"Mr. Xie, you were present at the shareholders' meeting a few days ago. You should have sensed that everyone was quite willing to acquire Yinlong."

The new chairman took over the conversation with sharp words: "For the company's own fundraising, the price of the private placement of shares to the chairman was too low, which is detrimental to the interests of all existing shareholders, especially small and medium-sized retail shareholders."

"This is a serious blow to the good reputation that Gree has built up in the capital market over a long period of time."

The new bride can't wait to throw out the price after entering the bridal chamber. The two sides cooperate to get rid of Dong Mingzhu and let him take charge of Gree. Jingxing Group will make a fortune from the capital market and then make a fortune from the company itself. Everyone will benefit from cooperation, so what else can be said!

Director Wang added more calmly, "Mr. Xie, your strategic vision is obvious to all. I think you have a lot of expectations for Gree's future development direction, right?"

"After all, increasing the stake in Gree is a big project, and our employees are currently on-site at Gree to conduct research."

Xie Jing Xing avoided answering and smiled gently to prevaricate: "How about we talk after we finish the research?"

"No problem." Director Wang frowned and agreed reluctantly.

The new chairman sighed awkwardly: "Boss Xie, since we are talking about this, let me tell you the truth. I had no choice but to take over the position of CEO."

"How to say?"

"Forget it, you are careful and clear. Time waits for no one. I will come to see you this weekend."

Director Wang pulled his colleague back, and the two pretended to be mysterious and left in suspense. When they walked out of the office, they looked at each other, both shook their heads with serious expressions.

The Baoneng Group only wants to make profits from its capital, while Xie Jingxing may covet the actual control of Gree and incorporate it into its own smart terminal ecosystem.

So when the incident happened last month, he really didn't intend to worsen the relationship between the two parties. The distribution of interests between Baoneng Group and state-owned assets is more compatible, and Yao Zhenhua is much easier to manipulate than Xie Shaoshuai...

Now Xie Jingxing has made it clear that he wants to have the right to speak. At the very least, he needs Gree to develop in the direction of the smart ecological strategy he envisions, and what should be considered is state-owned assets.

If the two sides fail to reach an agreement, Dong Mingzhu, who is basically out of the game, will be saved. Xie Jingxing will be in charge of the management and operation of Gree. Director Wang has no way of knowing whether the two have already met, so adding some seasoning to divide them is better than doing nothing.

…………

"Notice on the removal of Comrade Dong Mingzhu from the position of Chairman of Zhuhai Gree Group."

A week passed in the blink of an eye. Director Wang did not meet with Xie Jingxing again as scheduled over the weekend, but explosive news about Dong Zong was circulated on the Internet again.

The official notice issued by a state-owned enterprise used the word "dismissal", causing an uproar in public opinion.

Gree Electric Appliances' official Weibo account issued an urgent clarification statement: Ms. Dong Mingzhu has voluntarily resigned from all positions in Gree Group to focus on the development of Gree Electric Appliances. This is a normal work change, and the relevant state-owned assets departments will continue to support Ms. Dong.

Gree Group responded with silence. No one came out to refute the online rumor that the dismissal notice was false, nor did anyone publicly support Dong Mingzhu.

"Your reputation is completely ruined."

As the dusk gradually darkened, Xie Jingxing stood on the pavilion, with half of the city quietly lying before his eyes.

Amid the confusion and insistence on different opinions, whoever becomes the winner among the local state-owned assets, Baoneng Group, and Xie Group will be able to easily kick Dong Mingzhu out without any pressure.

"I have been working at Gree for more than 20 years and have experienced too many true and false things. A truly trustworthy partner will not stop supporting me because of rumors." She stood shoulder to shoulder calmly to show that she is upright and has nothing to fear.

Xie Jingxing smiled without commenting. Director Wang's little trick was somewhat interesting, but it was a pity that he was rarely troubled by the chain of suspicion.

Qingyou Securities Asset Management Company, a subsidiary of Jingxing Group, and Dong Mingzhu jointly established a fund. The two parties jointly invested in the fund, with the former holding 90% of the shares and the latter holding 10% of the shares and serving as the fund manager to hold the operating rights.

This fund entity will then increase its holdings in Gree Electric Appliances, thus forming a situation where Xie Jingxing has actual control at the equity level and Dong Mingzhu has actual control at the management level, with the two-level structure restricting each other.

Director Wang, who was supposed to show up today, missed the appointment because the state-owned assets team was slow to penetrate the control chain. Later they realized that he had already reached an agreement with the Iron Lady!

"The shareholding ratio of the Baoneng Group has reached 4.9%. It will raise its stake next Monday, which is faster than expected." Dong Mingzhu broke the silence.

Xie Jingxing nodded: "It can be faster."

"I'm not under any pressure. Just take your time to be safe." Dong Mingzhu said insincerely.

No one knows what cards the state-owned assets have in their hands, and whether the next move will kill her directly. But if she admits defeat now, how will she deal with the young marshal next to her in the future? Will she be willing to be a subject and a slave?
Xie Jingxing had no intention of suppressing the old lady's self-esteem, and explained bluntly: "The betting plan between Meizu and Zhuhai on new energy vehicles has been stopped by the city. The team has been deployed, and the cost is wasted every day. Let's make a quick decision."

"Okay, I'll wait for your call." Dong Mingzhu calmed down a little and turned to walk down the pavilion.

"Send it to Dong Zong."

Xie Jingxing threw the bait in his hand into the pond, and koi fish jumped out of the water one after another, causing ripples on the water surface.

Zou Jingyi put down the tray, took out the towel and handed it to him, then stepped back to help Dong Mingzhu lead the way.

Yu Tong was on maternity leave and moved to Zhuhai with her daughter to be with him. The flat with sea view felt cramped, so she bought a mountaintop villa covering six acres and recreated the ancient style of Jiangnan gardens.

It's a nice place to live, with a great view overlooking half of the city, but the mountain road is a bit winding and rugged, and it's difficult to travel after dark.

…………

Monday, April 11th.

Gree Electric Appliances' stock price hit the daily limit with large trading volume. After the market closed, Qianhai Life Insurance, a subsidiary of Baoneng Group, raised its stake in Gree, reaching 5%.

Late on the same night, Gree Electric Appliances Chairman Dong Mingzhu and Jingxing Group jointly established a shareholding fund to hold 5% of the company's shares.

Two hours later, Gree Group's official website issued an announcement in the early morning, stating that the board of directors had resolved to increase its stake in Gree Electric Appliances by 2%-5% in the fourth quarter.

The barbarians are knocking at the door, and the major state-owned shareholders are joining forces with the White Knight to fight Yao Zhenhua. This is the situation from the public's perspective.

The share acquisition war was on the verge of breaking out, and small and medium-sized retail shareholders holding Gree Electric Appliances shares fell into a Vanke-style frenzy, with the stock price continuing to rise by 7% the next day.

On Wednesday, Jingxing Group raised its stake in Vanke for the third time, with a shareholding ratio of up to 15%; at the same time, Evergrande Group triggered a second bid, and its shareholding ratio in Vanke reached 10%.

The Baoneng Group has not yet triggered the 25% shareholding ratio threshold, and the chips circulating in the market have shrunk to below 30%. It is almost impossible for any of the three parties to achieve actual control by increasing their holdings in the secondary market.

On Friday, Dong Mingzhu made a public statement, angrily accusing Yao Zhenhua of becoming the sinner who destroyed China's manufacturing industry.

She called on small and medium shareholders to collectively resist the capital barbarians, and at the same time announced that she would issue additional shares at a premium to the shareholding platform jointly established between her and Jingxing Group in order to raise the stock price and dilute the shareholding ratio of the Baoneng Group.

This move has been widely recognized by all sectors of society. The dealer shareholding platform, which holds 8.2% of the shares, expressed support for President Dong. The total shareholding ratio of the Xie family soared to 13%, and the plan of private placement of shares became an inevitable trend.

In the week when Gree’s stock price skyrocketed, Baoneng Group’s shareholding ratio has not increased at all since it took over the control of the company.

Shocking news suddenly broke out in the market over the weekend that Jingxing Group will acquire all of Vanke's shares held by China Resources.

Wang Shi personally forwarded the explosive article accusing Xie Jingxing of doing evil. The former chairman of Shenzhen Metro Group jointly with several retired comrades in Shenzhen publicly petitioned the Shenzhen Stock Exchange, demanding a thorough investigation of Xie Jingxing's transactions with China Resources.

Xu Jiayin added fuel to the fire by saying that he believed in Marshal Xie more than himself and was willing to transfer his shares to Jingxing Group.

Zhuhai State-owned Assets held a press conference to deny any under-the-table dealings with the Baoneng and Xie groups. It welcomed friendly external investors to join Gree Electric's board of directors, but did not welcome any financial capital with ulterior motives and the purpose of damaging the interests of all shareholders to control Gree.

Yao Zhenhua is about to die. He can’t buy Gree and can’t withdraw from Vanke.

The day Xie Jingxing reached a deal with China Resources, he became the meal on the table.

As for Zhuhai state-owned assets, they should either withdraw from Gree completely or join hands with Yao Zhenhua to fight for the last chance. Try to see how much money Xie has and push up the stock price with him until one of them explodes...

It's Monday again, November 11st.

During the concentrated bidding phase of the early trading session, the K-line of Gree Electric Appliances drew a straight and bloody red line. Half an hour after the official opening, the stock price rose by 5%, and then the rise came to an abrupt halt, collapsing like a waterfall.

——The China Securities Regulatory Commission issued a sudden announcement, urgently halting the entry of many insurance funds, including Qianhai Life Insurance under Baoneng Group and Hengda Life Insurance under Evergrande Group, into the market. (End of this chapter)