Black technology: a super empire spanning two worlds

Chapter 359 [Judging by Actions, Not by Intentions]

To be fair, President Zhou is indeed very good at handling things, and his career path is getting wider and wider.

Yun Shu tilted her head slightly to look at Xiao Yu: "Do you agree to the donation?"

This matter is that Zhou Chengyang expressed his intention to follow Xiao Yu completely from now on, and to go all the way down this path, wanting to enter the big boss's core circle of friends.

Zhou Chengyang has now secured a powerful patron through his kinship with Yun Shu, but he hasn't actually entered Xiao Yu's core circle of friends yet.

All I can say is that he is a good external partner.

But President Zhou clearly hoped to go further, because Likang Technology was too easily replaced, a fact he was very aware of, and it made him feel insecure.

Finally, after a moment's thought, Xiao Yu said succinctly, "Don't cash out. Let's transfer the shares as a donation."

Yun Shu nodded: "Okay, I'll say hello to my cousin later."

Regardless of Zhou Chengyang's motives, the most important thing to consider in this action is his actions, not his intentions, since he genuinely benefited the public.

At this current juncture, Zhou Chengyang's move is also beneficial to the development of the Liuguang Xingyu simulation robot.

This is a classic "good cop, bad cop" drama. Mr. Zhou was summoned for questioning, and his donation of 5% of his shares to the HP Foundation at this critical juncture is seen by outsiders as the best proof that he has learned his lesson after being dealt with harshly.

Since the HP Foundation's mission is "common prosperity" and to support the underprivileged in society, Zhou Chengyang's actions can provide positive guidance for relevant parties to offer a "compromise" solution.

This demonstrates that Zhou Chengyang acknowledges, admits, and corrects his mistakes, which can help salvage his damaged reputation in the eyes of the public.

Zhou Chengyang and his wife together hold 39.58% of the shares of Likang Technology. They donated 5% of the shares free of charge, leaving them with 34.58%. They remain the actual controllers of Likang Technology and still hold the lifeline of control over the company.

Companies listed on the A-share market do not support the A/B share system. However, as long as the shareholding ratio reaches 34%, it is equivalent to having a veto right, because the Company Law stipulates that a two-thirds majority is required to pass a major decision.

Zhou Chengyang and his wife together hold more than 34% of the shares. If they vote against it, they will not be able to obtain a two-thirds majority, and the resolution will not pass. This is equivalent to a de facto veto.

At this moment, Xiao Yu looked at Yun Shu and said, "Your cousin-in-law is good at handling things and getting things done, and he does a pretty good job. However, he goes a little too far. Tell him to stop trying to use these petty tricks to please others. If he can't get things done, he won't stand up for himself and will be useless. He's not my subordinate, so I can't say these things. You two are relatives, so you can give him a warning for me."

Hearing this, Yun Shu nodded: "Okay, I understand."

The matter of the Flowing Star Language simulation robot has come to an end for Xiao Yu. The enterprise version cannot be promoted yet and will have to wait until the rectification is completed.

Once the rectification is completed, the relevant departments will provide a "compromise" solution that avoids extremes. It will neither allow disorderly development nor reject advanced productivity and technological progress. The solution will support the continued operation and sales of the personal version, while the enterprise version will be put into trial operation in the entertainment industry.

We must fully recognize the double-edged nature of emerging things, give full play to their positive aspects, and curb their negative impacts on society.

Undoubtedly, with the groundwork laid and the negative emotions largely vented, the resistance to doing this will be much, much less. Opposition will not be as one-sided as it is now, and support will become the majority, allowing things to proceed more smoothly and be implemented.

……

Two hours later, Zhou Chengyang learned from his wife, Yun Ruolan, that Yun Shu had suggested that they directly transfer the shares to the HP Foundation.

Yun Shu gave her advice based on her own personal opinion, without mentioning that she had discussed the matter with Xiao Yu. However, President Zhou believed that she must have informed Xiao Yu beforehand before giving her advice.

In other words, this is what Xiao Yu meant.

Mr. Zhou was also very excited. The big boss had agreed, which meant approval. Entering the big boss's core circle of friends meant a promising future. At this moment, Mr. and Mrs. Zhou Chengyang were discussing this matter together. After thinking for a while, Mr. Zhou said, "Then let's directly transfer 4.99% of the shares to HP Fund. That way, when HP Fund wants to reduce its holdings and cash out, it won't need to issue a reduction announcement in the secondary market in advance."

Upon hearing this, Yun Ruolan couldn't help but say, "When I was on the phone with my cousin just now, she said to focus on doing practical things and not to engage in these superficial clever tricks. Don't take her words lightly. I think it's more like Xiao Yu instructed her to convey these words to us."

Zhou Chengyang laughed and said, "Of course I know that, but there's no conflict. We must do practical things well, but doing practical things well and adding these so-called clever tricks is even better. If the big boss says you don't need to do something, do you really not do it? That would be called being brainless. In short, we should add as much as possible to make things better. That's settled."

……

The following day, Wednesday, December 4th.

At around 13:33 p.m. that day, Zhou Chengyang posted a Weibo message stating that he would donate 4.99% of the equity of Likang Technology to the HP Foundation free of charge to support public welfare and fulfill his promise to "help the younger generation get rich".

As soon as he posted this Weibo post, netizens were amused and flocked to leave their scathing comments.

[Haha, Lao Zhou's survival instinct is off the charts.]
[happy--!]
[The gentleman was arrogant at first but then became obsequious; it's laughable to think about it (manual sarcasm)]
[I still prefer President Zhou's previous spirited and unruly demeanor (winking emoji/jpg)]
[Mr. Zhou: I've already behaved myself, please let me go.]
[If only I had known this would happen...]
[If someone knows they're wrong, admits their mistakes, and can correct them, then they're still a good comrade, right? (Shiba Inu.jpg)]
[Haha, after taking Iron Fist, it works so fast! Iron Fist is definitely the best... (doge.jpg)]
[Looks like President Zhou has really behaved himself... (facepalm.jpg)]
[Based on Likang Technology's latest market capitalization, this would be worth over 840 billion.]
[It's not worth that much anymore; it's only worth around 700 billion now. Likang Technology's stock price is plummeting.]
……

Just as netizens were watching and making fun of the stark contrast between Zhou Chengyang's behavior before and after being summoned for questioning, Likang Technology's stock price suddenly plummeted shortly after he posted the news on Weibo.

Before the Weibo post, the stock price had risen by more than 4 percentage points.

But now it has not only turned from rising to falling, but has also plummeted by -19%, and is still falling.

Around 14:39 PM, Likang Technology's stock price dropped to 2526.85 yuan, a drop of -30.00%, hitting the daily limit down. In just one day, it wiped out half of the gains from the previous rebound.

The sharp rebound of more than 1.5 times in the short term would have prompted profit-taking, and yesterday's slight drop of -0.26% and the closing of a green doji candlestick indicate some stagnation in the upward trend.

As soon as Mr. Zhou posted this Weibo post, the stock price plummeted.

Investors saw him transfer 4.99% of his shares to HP Fund, clearly worried that HP Fund would sell off its holdings later. Moreover, the fact that the stake was below 5% meant that it could be reduced at any time without needing to issue a reduction announcement 15 trading days in advance.

This news can be interpreted as either a negative factor or a positive one.

Zhou Chengyang's first statement after being summoned for questioning was a swift apology on Weibo, where he humbly admitted his mistakes and accepted rectification. Now, he has donated about 5% of the company's shares to the HP Foundation. In a sense, the fact that he has taken these "remedial" measures suggests that things are not as bad as the outside world expected, and it is unlikely that he will be directly and drastically cut off.

In other words, Likang Technology's stock price shouldn't have plummeted by 30cm due to the free donation of shares.

But the fact is that it was hit by the daily limit down, and after the news came out, the intraday chart plummeted.

The reason lies in the algorithmic trading of quantitative funds. It was collectively crashed by quantitative funds because after Zhou Chengyang posted on Weibo, many quantitative programs immediately captured the latest market dynamics.

Then, these quantitative programs analyzed the news and identified it as a major unexpected negative event, which was seen as a sudden and significant reduction in the shareholding ratio of the actual controller of Likang Technology, thus triggering the sell condition.

Quantitative funds dumped their shares and fled, resulting in a stampede that drove Likang Technology's stock price to its daily limit down.

On the next trading day, the stock price was hammered down by more than 20% during the day, falling below the 2000 yuan mark to 1999.98 yuan. However, in the afternoon, it staged a "V-shaped recovery", not only recovering but also closing up 13.43%.

When the price plummeted to around 2000 yuan, the operators of the social security fund and other national funds were surprised to find such a good deal. So they decisively and aggressively increased their holdings by more than 40 billion yuan.

……

(End of this chapter)