Return to 88: Starting from Marrying My Sister-in-law

Lianxiang Group is also a business partner of his Cheung Kong Holdings in mainland China.

Among the key projects invested in by the “Asian Audiovisual Foundation” led by the Li family is the VCD project led by Lianxiang.

Of course, this project is unrelated to the main business of Lianxiang, which is currently listed in the port city.

This is a new company jointly funded and established by both parties through the integration of resources and technology.

However, although this is a new company jointly funded by both parties, Lenovo is still the main entity and its upstream parent company, and the management rights are still firmly in the hands of Lenovo employees in mainland China.

Li Ka-shing put down the report and slowly spoke to his eldest son, Li Zeju, who was standing to the side. His voice was deep but carried an undeniable authority: "Zeju, your brother has been bullied badly this time."

Li Zeju listened attentively with his head bowed.

A glint of light flashed in Li Ka-shing's eyes as he continued, "Even when beating a dog, one must consider its owner. No matter how unruly Zekai is, he is still surnamed Li and is my son, Li Ka-shing. Yingke also represents the face of the Li family. We cannot swallow this insult."

He paused, then pointed to the name of Lianxiang on the report: "In addition, Lianxiang itself is also an important partner of our Cheung Kong Holdings. Its current stock price has seriously deviated from its actual value as a leading PC manufacturer in mainland China. It has fallen too much. There is an opportunity here."

He looked at Li Zeju and gave the order: "In the name of Cheung Kong Holdings, begin to enter the market, choose the right time and price, and absorb a large number of Lianxiang's circulating shares."

The eldest son's eyes flickered.

Li Ka-shing pointed twice with his finger: "The goal is to become a major shareholder of Lianxiang. Firstly, to stabilize the stock price and protect the interests of our partners and our own business strategy; secondly, it's also to show the Li family's attitude to that arrogant young man from the mainland on behalf of your brother."

Then, he looked at his eldest son, who was standing to the side, and said, "Raise your head. Do you understand?"

Li Zeju quickly forced himself to concentrate, raised his head, and nodded firmly to his father. "Father, I understand. I promise to cooperate well with my second brother and not let outsiders laugh at us."

Having served his father for so many years, he understood very well that this man, feared by everyone in Hong Kong's business world, was a man of his word. Even though he was the eldest son, he would definitely not have a good outcome if he disobeyed orders. What he needed to do now, before his father completely relinquished power to him, was to completely obey his father's orders...

He did whatever his father asked him to do and played the role of his son well.

This is also the biggest difference between him and his rebellious and intelligent second brother.

And so, while the outside world was still speculating about the sudden plunge in Lianxiang's stock price.

Everyone is speculating what went wrong!

Cheung Kong Holdings, a business behemoth personally controlled by Hong Kong's richest man, Li Ka-shing, and whose strength far surpasses that of PCCW, has begun to slowly start its massive capital engine.

A massive amount of capital began to flow into Lianxiang Technology's secondary market in a planned and determined manner.

In stark contrast to the collapse triggered by the panic selling at Century Investment, the entry of CK Asset Holdings acted like a powerful stabilizing force and a strong buying surge.

The market trend reversed in an instant!

Retail investors and institutions who panicked and sold off were stunned, watching as a sudden surge of massive buying pulled the stock price back up from the abyss!

0.39… 0.50… 0.80… 1.20… 1.60… With the support of substantial funds from CK Asset Holdings, the stock price rebounded strongly, quickly recovered its losses, and finally stabilized at around HK$2.00 per share, a key psychological range!

Soon after, the Hong Kong Stock Exchange updated its announcements: CK Asset Holdings Limited and its concert parties hold more than 5% of the issued share capital of Lianxiang Technology (0992.HK), and are required to disclose their interests in accordance with the Securities and Futures Ordinance.

Following PCCW, CK Asset Holdings has become the second Hong Kong-listed giant to acquire a stake in Lianxiang Technology!
As soon as the news broke, many Hong Kong and mainland media outlets realized that the Li family had orchestrated the whole thing, deliberately suppressing Lianxiang's stock price to buy at the bottom and acquire more shares at an even lower price.

In just one or two days, the number of shares required for a takeover bid has been reached!
The headquarters of Beijing Lianxiang, Lao Liu's office.

The news that Li Ka-shing's Cheung Kong Holdings had made a takeover bid was like another heavy blow to Liu Jingting's heart.

He looked at the strong rebound curve of Lianxiang's stock price on the screen, as well as the overwhelming reports in Hong Kong media about "Two generations of the Li family, father and son, two flagship companies, simultaneously heavily investing in the mainland technology leader Lianxiang!" and "Superman father and son are optimistic, will Lianxiang turn the tide?", but there was no joy on his face.

The stock price has rebounded, and even started a new round of strong rise due to the double endorsement of the Li family and the stimulus of the takeover bid effect, with gains exceeding 10% for several consecutive trading days!

But Lao Liu felt a bone-chilling cold rush from the soles of his feet to the top of his head, and his palms were covered in cold sweat.

Instead of feeling relieved, he felt unprecedented pressure and a fear of letting a wolf into his house!

“The Li family…Li Ka-shing and Li Zekai…” Old Liu slumped into the large leather chair, muttering to himself, his eyes filled with extreme worry and vigilance.

One is PCCW, the other is Cheung Kong Holdings... Father and son, two generations, have become major shareholders of Lianxiang... Together they hold at least 10% of the shares!
The power of discourse... the influence of the board of directors... this has become so great that it is enough to shake the foundation of the existing management of Lianxiang!

Old Liu knows all too well the methods of these financial giants.

Li Ka-shing is far superior to a hot-headed young man like Richard Li; his foresight and business acumen are truly terrifying.

On the surface, CK Asset Holdings' intervention is a market rescue and an indication of optimism, but is there a deeper purpose behind it?

Did the father and son reach some kind of tacit understanding in private?

What do they ultimately want to do with Lianxiang?
Is the intention to gradually erode control?
Or is there another picture?
"The Li family, indeed, are wolves in the capitalist world. Lianxiang... it is my Lenovo, I, Lao Liu, single-handedly built it from scratch to where it is today!"

Old Liu clenched his fist tightly, his knuckles turning white, his eyes blazing with intense resentment and a determination to protect it. "It's my child! I will never allow anyone, any force, to threaten my control over it! Never! Never—" Regardless of whether this was true or not.

Whether it's a misunderstanding or the truth, the seeds of this problem have been sown, so we must nip them in the bud.

Zhao Kuangyin's Chenqiao Mutiny and subsequent ascension to the throne is a lesson history has taught future generations!

In short, at this moment, an immense sense of crisis, like a cold, venomous snake, coiled around Lao Liu's heart, making him feel an unprecedented sense of isolation and threat. He had thought he had driven away Lu Yang, this "barbarian," but unexpectedly, in the blink of an eye, he was faced with an even more powerful and unshakeable "Superman Father and Son" alliance.

How to do?
How to break the game?

How to keep this incredibly powerful father and son in check?
Old Liu's brows furrowed into a tight knot as his mind raced, considering every possible solution.

The office was deathly silent, except for the sound of his heavy breathing.

An extremely risky, even somewhat humiliating, thought, like a poisonous vine sprouting in the darkness, quietly crept into his mind, making even him feel a chill:
"Could it be... that we really have to seek 'his' cooperation?"

"That... mortal enemy?"

To understand Lianxiang's equity structure, we must first understand what Lianxiang Group is and what Lenovo Holdings Group is.

Lenovo Holdings Group is a technology-focused investment holding company founded by Liu Zhi, who graduated from the Chinese Academy of Sciences in 1984, along with a group of colleagues.

Previously, it was 100% owned by the Chinese Academy of Sciences. After several reforms, a system of shareholding by administrators and employees was introduced. The Chinese Academy of Sciences holds 65% of the shares, while Liu Zhi and other management members hold 35% of the shares on behalf of the "Employee Stock Ownership Association".

At this point, some people may be curious: it is called Lenovo Holdings Group, so what is the relationship between it and Lenovo Group, which is listed in Hong Kong?
Who is the main character and who is the secondary character?
It's actually quite easy to explain. The essence of Lenovo's IPO in 1994 was that the parent company, Lenovo Holdings, took out a portion of the equity of its core and most profitable IT hardware business (i.e., Lenovo Group) and raised funds through a public offering in Hong Kong.

How much funding was raised?

It will account for approximately 35% of the total share capital. These approximately 35% of shares will be issued as publicly traded shares to the public and international investors to raise funds to support business expansion.

As the parent company of Lenovo Group, which is listed in Hong Kong, Lenovo Holdings holds approximately 65% ​​of the shares in Lenovo Group to maintain its absolute controlling stake.

This makes it clear that Lianxiang Group actually only has one major shareholder, Lenovo Holdings Group, which, as its parent company, firmly holds control. However, there have been repeated cases of shareholding increases, first with Lu Yang's Century Group, then with Li Zekai's PCCW, and then with Li Ka-shing's Cheung Kong Holdings.

As a listed company, the board of directors of Lianxiang Group became lively. If Lu Yang did not withdraw, it would be a four-person game. After Lu Yang withdrew, Liu Zhi would face the duo of Li Ka-shing and his son. Although he still firmly held control by relying on the 65% equity of the parent company of Lianxiang Holdings Group, he would still face a severe challenge from the father and son.

As a result, different voices emerged within the Lianxiang Group. If Liu Zhi could continue to rule as he did before, that would be fine. But once different opinions arose within the group, some people might have different ideas.

If someone were to side with the Li family father and son, and if there were any dissatisfaction with Liu Zhi within the Chinese Academy of Sciences, then Liu Zhi would be in danger.

Don't forget, besides the Lianxiang Group, which is currently a listed company, there is another subsidiary of Lianxiang Holdings Group, Lianxiang Digital. In order to speed up the VCD project and obtain more external funding, it reached an agreement with the Asian Audio-Visual Foundation led by the Li family. However, the shareholding ratios of the two parties are extremely close, with Lianxiang Holdings Group holding only 55% and the Asian Audio-Visual Foundation holding 45%. If there is any change, it is possible to lose control. Therefore, Liu Zhi is now facing a challenge from the Li family from two sides.

Whether it's the listed company Lianxiang Group or Lianxiang Audio-Visual Company, which now holds a certain position in the mainland VCD market, losing either of these companies would be a loss that the parent company, Lianxiang Holdings Group, cannot afford.

The Li family is too powerful. Liu Zhi is worried that some people in the Chinese Academy of Sciences might think that the current reform of Lianxiang is not thorough enough. If they want to try to completely introduce Hong Kong capital and eventually replace the existing management of Lianxiang, once the two sides reach a cooperation agreement, he, Old Liu, will not even have a chance to fight back.

In order to deal with this unexpected situation, he decided to introduce another powerful partner to Lianxiang to restrain the Li family in Gangcheng.

And so, after counting and counting, only Lu Yang was the most suitable.

just
"Investing in...Lenovo Holdings?!"

Liu Zhi's voice ripped through the office's deathly silence, carrying an unbelievable sharpness and a furious rage of utter offense. The roar seemed to drain the air from his lungs, leaving him gasping for breath.

He slammed the receiver hard against the expensive mahogany table, making a loud "bang"!
"Wishful thinking! Utter wishful thinking!!!"

Lu Yang's appetite was much bigger than he had imagined, no, it was much bigger than the limit he could imagine!

This is no longer as simple as coveting a portion of the equity in the listed company, Lianxiang Group.

This is a direct attempt to reach the very foundation of the Lenovo empire – Lenovo Holdings Group!
It is to shake the core of power that Liu Zhi relies on for survival and to control everything!

Indeed, Wei Shu, the female president of Century Group, replied to him on the phone: "I'm sorry, President Liu, the boss has decided to withdraw from the listed company Lianxiang Group. If you are truly sincere about cooperating, why not open up its parent company for financing?"

What is Lenovo Holdings Group?
That was the culmination of Liu Zhi's life's work, the foundation he built from scratch, starting in a small gatehouse at the Chinese Academy of Sciences, leading his initial eleven partners through arduous struggle! Although the Chinese Academy of Sciences held a 65% controlling stake, the 35% held by management and employees, especially the portion effectively controlled by Liu Zhi through the "Employee Stock Ownership Association," was the cornerstone of his power and the key to his firm grip on the steering wheel of Lenovo!

Lu Yang actually wants to directly acquire a stake in Lenovo Holdings?! What does this mean?
This means that he not only wants to become a major shareholder of the listed company (Lenovo Group), but also wants to become a shareholder of Lenovo Holdings!

If successful, Lu Yang will directly share the decision-making and profit rights of Lenovo Holdings, and his influence will penetrate from top to bottom, covering the core assets of the entire Lenovo Group, including the listed company and the VCD joint venture!

After a burst of intense anger, a chilling sensation instantly swept through Liu Zhi's body.

He was all too aware of the dangers involved.

The 65% stake held by the Chinese Academy of Sciences is a red line that cannot be easily crossed. What the other party is most likely coveting is the 35% stake held by the "Employee Stock Ownership Association," which is tantamount to directly undermining Liu Zhi and taking away a portion of the "lifeblood" of Lenovo from him and his core team!
"This kid... he's going to cause a major upheaval!" (End of Chapter)