1982 Started from Hong Kong

Chapter 523 New Stocks
"Jurassic Park" raks off global box office success; dinosaurs triumph over Batman, Hollywood falls short of prodigy Yuan.

"Leading a new trend in global cinema, Jurassic Park successfully opened up the North American market, topping the daily box office charts on its theatrical opening day."

Jurassic Park on Sharp Island was packed with people; Governor William H. Smith personally officiated at the opening ceremony; the prodigy may well make it a pillar of Hong Kong's tourism industry.

91 Entertainment releases financial report; anime comics contribute tens of millions in revenue in a single month, with promising future prospects.

Basketball's popularity in Japan and other countries is largely due to the manga "Slam Dunk," and Rukawa Kaede has been named Tokyo's most popular manga character.

Pokémon sweeps the children's market, backpacks and stationery sell out, and Toxapex plans to further expand its peripheral business.

The strongest lineup of singers in Hong Kong gathers for the "September 1st Voice" to call for freedom and peace. Prodigy Yuan and his entire team create the star-studded chorus song "Glorious Years," inspired by South African black leader Nelson Mandela.

Girls' Generation announces their second performance at the Tokyo Dome in the second half of the year; Japanese fans snap up high-priced tickets in advance; "High School Musical 2" will also be released in Japan this summer.

"Hu Xian's poor management has led to a frequent decline in the sales of Sing Tao Daily, while the sales of Singapore's 'September 1st Daily' have reached a new high, currently second only to Lianhe Zaobao."

91 Entertainment Announces Collaboration with Novel Division to Develop Film and Television Adaptations of Several Works, Including "The Three-Body Problem"

91 Entertainment's revenue increased by over 37% in the first half of the year, resulting in substantial returns for shareholders. The board of directors has decided to distribute interest payments ahead of schedule to reward shareholders.

……

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This period coincided with the boom of the Asian entertainment industry, with all sectors of the cultural and entertainment industry undergoing rapid development. However, there was no company like 91 Entertainment, a Frankenstein's monster with a comprehensive strategic layout. It not only occupies a strong market influence in Hong Kong but also gradually expands into international markets.

Standing on the shoulders of giants, Zhai Yuan personally drove the upgrading of the entire industry, and in just a few years, he integrated an entertainment behemoth.

At the beginning of the year, 91 Entertainment's stock price remained stable at HK$32.

During the same period, TVB's stock price was around HK$12.

During the same period, Zou Wenhuai submitted another listing application to the Hong Kong Stock Exchange, the Securities and Futures Commission, and other departments, but it was rejected.

At the same time this year, Huang Yulang, known as "Emperor Yulang," was arrested by the Independent Commission Against Corruption (ICAC) and sentenced to four years in prison for conspiring with his sister and secretary to falsify accounts and embezzle tens of millions of dollars from his company.
The resulting chain reaction led Hu Xian, the head of Sing Tao Group, to be overly ambitious and spend HK$130 million to acquire a 40% stake in Yu Lang Group. As a result, the company suffered losses for three consecutive months with no sign of profitability. Even Sing Tao Group was affected, which ironically allowed the September 1st Daily to replace Sing Tao Daily in Singapore. This led to the outside world jokingly calling Hu Xian a "tiger father and dog daughter"...

Judging solely from the trends in the capital market,
This is enough to demonstrate 91 Entertainment's dominant position in Hong Kong's entertainment industry.

The high share price of HK$32 signifies that the group is highly favored by the capital market, which recognizes its leading position in the cultural and entertainment market and values ​​it extremely highly.

But for Zhai Yuan, it was still far from enough.

In April, Jiu Yi Entertainment Group's publicity and promotion efforts became ubiquitous.

Flowers in full bloom, oil sizzling over a raging fire.

In this prosperous era of economic rise, the stock market is extremely sensitive to any positive news, let alone such a barrage of negative news.

The shadow of Black Monday has long since passed, and the Hang Seng Index has returned to a stage where investors can make money even if they buy blindly.

As a result, the stock code 997 of 91 Entertainment Group soared like a rocket, instantly becoming the hottest stock on the exchange and attracting the attention of countless investors.

The China Securities Regulatory Commission (CSRC) was also drawn to the scene.

"I will instruct my staff to fully cooperate with the Securities and Futures Commission, but if you dare to suspend my license and cause negative impact, I'll be waiting for you in the Legislative Council!"

Facing a group of China Securities Regulatory Commission (CSRC) staff members in suits and ties, Zhai Yuan offered a well-intentioned reminder.

"No, we are just conducting a routine investigation into your company's recent stock market performance to ensure market fairness and transparency, and to protect the interests of investors."

Several senior investigators and market manipulation experts hurriedly put on smiles.

"Tune, tune, tune to capture the stars!"

Zhai Yuan ignored the other party and snapped his fingers. Secretary Li then produced a list of pre-prepared release records, internal communications, and financial statements.

"All the documents are here, take your time to look them up."

Zhai, a Legislative Council member, chairman of the Heung Yee Kuk, and Justice of the Peace, said arrogantly, "But remember to issue a statement to clarify things after the investigation is over, otherwise I will lose a penny, and you will no longer be able to make a living in this industry."

A China Securities Regulatory Commission (CSRC) staff member gave an awkward, apologetic smile: "Definitely, definitely!"

4 month 5 day,
Due to the intervention of the China Securities Regulatory Commission, the growth rate of 997's stock price has slowed down slightly.

4 month 6 day,
The China Securities Regulatory Commission (CSRC) issued a statement in the financial sections of major newspapers, stating: "In the recent investigation into the stock price fluctuations of 91 Entertainment Group, the CSRC reiterates that all its activities are conducted in accordance with relevant securities market laws and regulations, all news dissemination and release of positive news are legal, and there is no market manipulation involved..."

That afternoon, 997, backed by the China Securities Regulatory Commission, rebounded again, surging upwards in a straight line.

4 month 9 day,
The stock price of 91 Entertainment Group has surged to 56 yuan per share.
Within a week, the increase exceeded 57%...

…………

"It's still not rising high enough or fast enough."

Ngau Tau Kok 91 Entertainment Office Building
Zhai Yuan sat in the conference room, happily eating a box of fast food that cost a dozen yuan.
After swallowing a mouthful of rice coated with beef bits, Zhai Yuan looked up at the makeshift financial think tanks on either side.

Zhai Yuan asked, "Tell me what to do next?"

Professional tasks should naturally be left to professionals.

The ability to boost 997's stock price in just one week is not only due to Zhai Yuan's news offensive, but also inseparable from the two groups of people currently in the meeting room.

One group consisted of strategic planning experts from Goldman Sachs, and the other group consisted of risk management experts from Merrill Lynch.

Inevitably, there are also so-called valuation experts, public relations experts, financial advisors, data scientists, market analysts... In short, each title is full of gimmicks, and the fees are outrageously expensive.

The compliance and legal risks are naturally handled by their own team, the 91 Law Firm headed by Shen Wei.

"Mr. Zhai, judging from the current enthusiasm of stock market investors, the stock price of 997 is far from reaching its peak."

A Goldman Sachs broker surnamed Zhuang explained: "The key is that Mr. Zhai and other shareholders have too much capital. Mr. Zhai alone has a 70% controlling stake. With the other shareholders, it means that there are very few shares available for trading on the market, resulting in low liquidity. Naturally, the rise in stock price will also be affected."

Jiuyi Entertainment Group has issued a total of 100 million shares, of which Zhai Yuan now holds 70%.

The three major shareholders, He Shizhu, Lei Juekun, and the Guanjiapo couple, together hold 4.9% of the shares, while the public shareholders who hold the shares in the market hold only 25.1%.

With a low proportion of public shareholders and poor stock market liquidity, it can be said that Jiu Yi Entertainment's steady rise to this day is entirely due to Zhai Yuan's flawless business decisions and his consistent leadership in the industry. Otherwise, if another person had taken the lead, they would have faced the high risk of damaging market confidence with the slightest misstep.

Zhai Yuan nodded to indicate that he understood, and said with a smile, "I was just planning to sell some of my shares to raise some funds. Can you come up with a plan for me?"

A foreign broker from Merrill Lynch chimed in, "There are two options. The first is to issue new shares. The advantage is that you don't have to sell your shares directly. Although Mr. Zhai's shareholding percentage will decrease, he can still retain absolute control. The new shares can also attract new investors and bring more capital support. The second is to sell his own shares directly, which is the fastest way to cash out. If Mr. Zhai chooses to sell his shares to strategic investors or private consortia, it will undoubtedly further boost market confidence."

"It sounds like issuing new shares is a more reliable option."

Zhai Yuan smiled.

Whether it's issuing new shares or selling shares directly, the essence is to quickly realize cash and raise funds, which will also dilute one's own equity.

However, given the current upward trend of Jiuyi Entertainment's stock price, unless Zhai Yuan goes bankrupt today and needs a capital injection, issuing new shares will definitely be the first choice.

"Okay, Mr. Zhai, how do you plan to conduct this new share issuance?" Goldman Sachs' broker asked again. "Whether it's a public offering or a private placement, we need to ensure that the entire process goes as smoothly as possible."

Zhai Yuan picked at the last few grains of rice in his lunchbox and said, "This time I want to pursue two paths simultaneously. What you need to do is ensure that this batch of new shares can be digested quickly and without causing excessive market volatility."

The foreign broker from Merrill Lynch smiled and suggested, "If Mr. Zhai were willing to suppress his own stock price in advance and then raise it after the new share placement is over, you would get more cash than you are doing now."

Upon hearing this, Zhai Yuan glanced at the other person, wiped his mouth, and grinned: "It's not that I haven't thought about it, but after doing something like this, I'm also worried that my future children won't have a bowel movement..."

The meeting adjourned that day.

Zhai Yuan walked out of the conference room and first contacted the three major shareholders, including He Shizhu, to inform them of his upcoming issuance of new shares.

After the new share placement, not only will the shareholder's own equity be diluted, but the three major shareholders will also be affected.

Fortunately, no one raised any objections. Given the current stock price of 91 Entertainment, the 4.9% stake held by the three major shareholders is approaching HK$300 million, so why would they make any further demands?

"I think He Shizhu and Lei Juekun will definitely continue to buy shares of 997."

Zhai Yuan then made a special trip to find Shi Nansheng. After discussing the new share issuance, he said to the "housekeeper" Shi Nansheng, "997 still has room to rise. We should prioritize benefiting our own people first. While waiting for this batch of new shares to be issued, ask your colleagues if they are interested in buying a few lots. The company will give everyone priority in purchasing rights."

Having tasted the benefits once, Shi Nansheng's eyes lit up, and he even forgot about Zhong Chuhong's matter.

Sister Nan doesn't trust other stockbrokers, but she trusts Boss Zhai the only one.

She rubbed her hands together rather ungracefully, raised an eyebrow, and asked, "How many shares will be issued this time? What's the price?"

“2000 million shares.” Zhai Yuan winked at her. “60 yuan per share.”

Shi Nansheng was taken aback: "997 closed at only 56 yuan today. Is the new stock more expensive than its share price?"

Zhai Yuan curled his lip upon hearing this: "Expensive? Let's wait and see~"

4 month 10 day,
With Goldman Sachs and Merrill Lynch manipulating the market, 997's share price hit a new high, breaking through HK$60 for the first time.

4 month 12 day,
On the same day that the share price reached HK$61.5, 91 Entertainment Group officially announced that the group planned to place 20 million new shares at a price of HK$60 per share.

In this situation where market demand and supply are completely mismatched
To incentivize investors to buy new shares and ensure the success of a share issuance, companies typically offer a discount on the share price.

The discount is usually around 5%-10%, depending on market conditions and the company's needs.

91 Entertainment also offered a discount of HK$1.50, a 2.5% reduction, setting a record for the lowest discount in Hong Kong's IPO placements...

In 1972, CK Asset Holdings Limited was listed on the Hong Kong Stock Exchange, issuing 4200 million shares at HK$3 each. It was extremely popular at the time, and its stock price soared on the first day of trading.

Then, just one year later, Cheng Ge issued new shares five times in succession to acquire land.

Within a year, the hot money brought in through new share offerings has increased Cheung Kong's land reserves by more than 20 times, causing its asset value to soar.

Today, CK Asset Holdings' market capitalization has increased more than two hundredfold.
Despite the overall sluggishness of the real estate industry this year, the share price has remained stable around HK$55.

4 month 15 day,
Following the preliminary application and approval process, the subscription phase for 2000 million new shares of Jiuyi Entertainment Group has officially begun.
The market's enthusiasm far exceeded expectations. With the support of the major underwriters, the subscription ratio for the new shares exceeded 17 times, far exceeding the company's planned allocation.

91 Entertainment quickly became a darling of the capital market thanks to its first share placement.

4 month 22 day,
The Stock Exchange completed all reviews and approved the listing of the new shares. After a brief adjustment, the group's share price resumed its upward trend.

In 1990, the Hang Seng Index rose from 1600 points at the beginning of the year to 1800 points without showing any signs of decline.

Riding this wave of momentum, Jiu Yi Entertainment's 120 million shares hit a new high.

60, 65, 70...

After a week of stabilization and technical correction,
The final transaction price of 997 shares was HK$72, which overshadowed Cheung Kong Holdings and was unparalleled for a time!
The newspapers say that the child prodigy is already on par with Li Ka-shing!
Whether or not 91 Entertainment contributed to this hype, Zhai Yuan was being praised to the skies!

"If I owned four companies like 91 Entertainment, and each company issued more than 1 billion shares while still maintaining this stock price, then I could truly dethrone the richest person in China..."

Zhai Yuan looked at the newspaper articles comparing him to Brother Cheng and wisely chose to ignore them all.

We must guard against arrogance and impetuosity; the task ahead is arduous and the road is long!

At the end of the month,

As the IPO frenzy in Hong Kong gradually subsided, phone calls began coming in from Taiwan.

"Mr. Zhai, our key technical personnel from TSMC will arrive in Nanjing tomorrow. I wonder how your preparations are going?"

On the phone, Sun Zhongmou's cheerful voice came through, his seasoned composure tinged with a hint of anticipation.

Zhai Yuan picked up the phone, his voice tinged with laughter, and said sincerely into the receiver, "The technical backbone of Shenshan Semiconductor has also set off from Japan. I have already informed them to go directly to Nanjing to meet with President Sun. They are to follow all arrangements and commands. At that time, TSMC and Shenshan must have a good exchange and work together to plan for future development in Nanjing!"

hang up the phone,

Zhai Yuan looked thoughtful, rubbing the microphone for a long time without putting it down.

The $50 billion super electronics city plan in Nanjing?

Mount Kinabalu has already dug a huge pit. Let's see if Sun Chung-mou and TSMC can survive jumping in together.

(End of this chapter)