"I don't know."

In Qiantang, at the headquarters of Haiwei Kangshi, Hu Yangzhong was holding the latest list of the top ten circulating stocks, which included Qingyun Investment, Qingyun Employee Stock Ownership Fund A, and Qingyun Employee Stock Ownership Fund B.

Together with Qingyun Xiangjiang Investment Foundation, Qingyun Group occupies four seats among the top ten circulating shareholders.

"Public reports show that Qingyun's boss Li Zehua is in Lushun, signing a strategic cooperation investment agreement with the local government, and investing 280 billion RMB to become the second largest shareholder of Yida Group.

Now it is negotiating with the National Electronics Technology Group Corporation to purchase 25% of Hikvision's shares from the latter, and to pay a premium to the market price, 150 billion RMB. What a huge deal!
The question is where do they get so much money? "

Gong Hongjia, the second largest shareholder of the group, who holds more than 27% of the shares, recalled the recent rumors in the market, "First, it was rumored that they had suffered huge losses from overseas gold investments.

This once led to suppliers blocking the door to demand repayment, but it turned out that someone had deliberately smeared the company. Not only did Qingyun Group not lose money, it also earned billions of dollars in profits from the futures market.

No one knows the exact amount, but judging from his successive investments in Yida, Longfor and Yongchuang, this guy has definitely made a lot of money.”

Qingyun Group and Hikvision have a long history of cooperation. As early as the beginning of the year, they signed a purchase order for surveillance and security products worth hundreds of millions of yuan.

Wu Yibin, the Qingyun director who was in charge of the negotiations at the time, once came forward and said that they wanted to see if there was any possibility of establishing deeper cooperation between the two groups.

At that time, Hikvision was about to prepare for its IPO. After careful analysis, it was believed that Qingyun Group purchased security monitoring products to donate to Liushenmen in order to win the latter's favor.

This simple donation behavior is not stable in Hikvision's view, because it has no urgent practical needs and Wu Yibin also has a lot of things to do.

I was just asked by my boss to inquire whether there was any possibility of a surprise investment. Since there was no possibility, I didn't force it. After saying hello and establishing business contact, I let it go.

It was not until Wu Yibin was transferred to the position of Vice Chairman and President of WeChat Technology Co., Ltd. that he made a routine call to Li Zehua to express his gratitude for his cultivation.

When I was asked about the shareholding status of the marked companies, I suddenly woke up. It turned out that except for purchasing stocks of more than a dozen listed companies such as Moutai and Pianzihuang, there was no movement in other companies.

Li Zehua was helpless, as it was impossible for him to keep an eye on his subordinates working all the time. At that time, he set a big goal for the investment fund under Qingyun Investment and only listened to the briefing once a month and paid no attention to it.

But Lin Wenhui, Qin Lang, and Wu Yibin, each one of them has their own specific job. They are so busy with their own tasks every day that they don’t have time to focus on buying stocks.

After Yao Xiangjun took office, he was busy promoting the industrial fund and invested in more than 30 technology companies that he was familiar with during his tenure at BOE, with investments ranging from several million to tens of millions in each.

His main goal is to catch everything in one swoop. He supports any company that is truly engaged in technological research and development. After all, his boss has money and likes to tinker with new things. He feels like a fish in water when he comes to Qingyun Investment.

By the time he came to his senses and noticed Hikvision, it was too late. Hikvision had successfully gone public at the end of May with an issue price of 68 yuan, and it didn't need the money from Qingyun Group at all.

There is no other way but to buy it publicly on the market. The price is a bit high, but who can blame the boss for liking it?

But everything changed after Zeng Haiyang took office as president of the Internet Travel Business Group and concurrently served as president of Yunyunbang and SF Chuxing.

Li Zehua has put forward strict requirements for online ride-hailing vehicles, whether they are operating within the city to carry passengers and cargo or for cross-regional logistics.

For example, for the Internet taxi business, he clearly required that both certificates be complete and the entire process be recorded and videotaped; for delivery within the city, whether it is take-out express delivery or cargo transportation by cooperative vehicles, videotaping is also required.

In Lushun, his newly proposed sharing economy also requires monitoring in the display areas, including tens of thousands of stations, experience stores, and future supermarkets across the country.

As well as assisting the Six Gates in establishing the Skynet Project, the Qingyun Group’s demand for security monitoring and portable audio and video recording products has skyrocketed.

It is no exaggeration to say that Qingyun's purchasing volume alone can support a security monitoring industry chain with annual sales of tens of billions.

Zeng Haiyang and Hu Zhiyuan went to explain in person, and the boss kept calling from the Northeast to ask questions.

Yao Xiangjun could no longer sit still, and he began to mobilize his connections in the industry. He first contacted the China Electronics Technology Group Corporation, as many of Qingyun's subsidiaries had shares in the State-owned Assets Supervision and Administration Commission.

The SASAC is in charge of the Electronic Technology Group, so the negotiations between the two sides progressed quickly. For the 52 institutes under the Electronic Technology Group, this was a bolt of fortune.

Why do you say that?

Because the trading market has clear trading restrictions on original shares, controlling shareholders are not allowed to trade original shares in the secondary market within three years of listing. After the lock-up period, the annual trading volume is also restricted.

In other words, unless they are particularly optimistic about the company's future, most shareholders will sell their shares to cash out after the lock-up period.

It doesn’t matter for the primary trading market. After the transaction, new shareholders must strictly abide by the secondary market trading rules and cannot sell publicly within the three-year lock-up period after buying.

Qingyun Group offered a price that the 52 institutions could not refuse, a 50% premium, and also issued a huge amount of commissioned customized procurement contracts.

How to choose? Do you still need to think about it?

Only a fool would refuse!

First, it sold at a 50% premium to the market price, successfully helping state-owned assets to cash out at a high level. The 52nd Institute currently holds a little more than 48% of Hikvision's shares, and after selling 25%, it still holds 23%.

Coupled with the contract offered by Qingyun Group, the stock price will only double in the future, and everyone's interests will be firmly protected.

What are the consequences of refusing?
Obviously, Hikvision is not the only player in the market. Qingyun has the monitoring and security needs of millions of vehicles, millions of delivery personnel, and hundreds of thousands of small and medium-sized enterprises.

Catering stores, supermarkets and huge personal market sales channels, plus the Beidou commercial full coverage and Skynet plan jointly implemented with the Five Military Commanderies and the Six Gates.

Once the negotiations fail, Qingyun will switch to its competitors with crucial orders, and Hikvision will immediately face the most terrifying and difficult competitor in the market.

When the lock-up period is lifted three years later, the stocks may fall to worthless pieces of paper that no one wants. Who will compensate for the loss then?

Play the emotional card and exert pressure from all sides to make Qingyun Group give up its investment and hand over the order obediently?
It's just dreaming. With Qingyun's current size, it can come up with real money to take over the state-owned assets. It would be polite to let the 52 institutions leave with a high premium. It would be better to replace them with something less sophisticated.

First, they frantically short sell in the secondary market, driving the stock price to rock bottom. Then, they spread rumors to raise the price of competitors, take out a part of the huge purchase orders, and continue to suppress the stock in the market.

In addition, with the resources behind Qingyun stepping in to pressure uncooperative shareholders, they can seize the shares held by the 52 institutes at a low price in a matter of minutes.

No matter how you look at it, accepting Qingyun Group as Hikvision's major shareholder will bring only benefits and no disadvantages.

In addition, the SASAC has been vigorously promoting the reform of state-owned legal person shares, and it itself owns shares in many subsidiaries of Qingyun Group. The two sides have a good basis for cooperation.

So after five or six months of negotiations, the two sides basically reached a consensus that Qingyun would invest 150 billion RMB in cash plus an order from Future Group to acquire 52% of Hikvision's original shares held by 25 Institute.

At the same time, Gong Hongjia also received an offer from Qingyun Investment to acquire 50% of its shares for 15 billion RMB. Unlike the high premium of state-owned assets, the offer he received was much lower.

However, compared to the added value, he still got the better deal. Gong Hongjia hasn't thought clearly yet whether to refuse or agree to the cooperation.

As they were chatting, the company's chairman, Chen Zhongnian, strode in and asked, "Tell me, what is the current situation?"

Hu Yangzhong smiled and said, "What else could it be? We've been targeted by a big shot. Mr. Yao Xiangjun from the investment company will come over for a meeting this afternoon."

"The 52% from the 25nd Institute, plus the 15% in your hands, Mr. Gong, totals 200 billion. After the investment, we will help develop the personal and commercial markets, and increase the company's revenue by more than billion every year."

Chen Zhongnian couldn't help but frown when he said this. "It seems that all the terms are arranged very well, but this aggressive attitude may just lead to a wolf entering the house!"

Hu Yangzhong sighed, "The market share is there, Qingyun Group has the strength to determine the future development direction of the security market, and he has enough funds to use for acquisitions.

The State-owned Assets Supervision and Administration Commission also put pressure on me, and I really couldn’t find any reason to refuse.”

Gong Hongjia is a businessman who never refuses a business that can make big money. "He even managed to convince the China Securities Regulatory Commission to circumvent the restriction that executives of listed companies cannot sell more than a quarter of their shares each year.

If you refuse such a generous gift, the consequences are clear to everyone. Once Qingyun is determined to support other competitors, Hikvision's future development may be overshadowed. "His words are quite interesting. He did not make a clear statement about his attitude, was very ambiguous about the acquisition, and tried every means to push the two partners to the opposite side of Qingyun.

"Accepting Qingyun as a major shareholder of Hikvision has many benefits. Take the example of BYD electric vehicles. Before the cooperation, its annual sales volume was only around one million vehicles.

After more than a year of cooperation with Qingyun, the company has expanded six or seven branch factories at once, and the production capacity has more than tripled. I heard that now three shifts are too busy to handle it. The sales volume of one factory is equivalent to the sum of the 2nd to 10th place.

Mr. Li is also generous to his own people. He is willing to take out 40% of the 5% shares acquired and reward them over five years to individuals or teams who have made outstanding contributions to the group's technology and management.

As direct beneficiaries, Hu Yangzhong and Chen Zhongnian were obviously tempted. Based on Hikvision's market value of more than 400 billion yuan today, 5% would be more than 20 billion RMB.

According to the future guarantee given by Qingyun Group, relying solely on the resources of the Qingyun system is enough to make Hikvision a well-deserved industry leader in China and follow Qingyun to expand overseas in the future.

The market prospects are broad and the future is limitless!
This is also the reason why the 52nd Institute of the National Electronics Technology Group was willing to accept it. Gong Hongjia did not refuse on the surface. The existing 28% shares would only be worth more than billion yuan at the market price.

Although he is optimistic about Hikvision's future, the addition of Qingyun as a variable, coupled with the tens of billions of orders it has every year, can completely support the creation of a new giant in the market.

Only God knows how much Hikvision will be worth by then.

By selling 15%, the company will get 50 billion in cash in the first place, and as for the remaining 13% or more of the shares, according to business plans, it is possible that the value will increase tenfold within five years.

As mentioned before, he is a businessman, so he will never refuse normal business profits.

But Jack Ma's circle of friends has influenced his judgment to a certain extent. As they are all Zhejiang businessmen, they should help each other. Pinxixi under Qingyun and Taotao under Ali are direct competitors.

Now Qingyun is trying to acquire a stake in Hikvision and the price they offer him is relatively low, which makes him feel disgusted, but at the same time, he is very tempted by the future that Qingyun offers.

“If we can get to the China Securities Regulatory Commission, we can use the restrictions on senior executives’ shareholding transfers to come up with a proxy holding contract, trick Qingyun Group into placing an order, and then wait for the stock price to skyrocket.

Is it feasible to set up a bureau to unite the 52 institutes and the management to drive Qingyun out?"

While the two partners were imagining the future, Gong Hongjia pondered over his previous conversations with Jack Ma and Guo Guangchang. The more he thought about it, the more he felt that there was room for maneuver.

After all, restrictions on senior executives’ appointments and annual transfers of original shares are also clearly stipulated in the Company Law. If the SASAC wants to operate privately and no one reports it, there will naturally be no problem.

After all, the Securities Law only makes clear provisions for secondary open market transactions. The China Securities Regulatory Commission will turn a blind eye to primary market transactions involving state-owned corporate shares.

But what if he reported himself?

The borrowing rules restrict Qingyun from purchasing his shares, and the annual transfer cannot exceed 25%. Even if he resigns from Hikvision now, it will take 11 years to transfer a little more than 7%.

In 12, one quarter of the remaining 21% will be transferred, which is a little more than 5%. In 13, about 16% will be held and the rest will be transferred to make up for the 15% stake. There is a lot of maneuverability in the process.

For example, if Qingyun were to invest in Hikvision, it would definitely have to agree to increase Hikvision’s performance and net profit in the next five years, and would have to make corresponding compensation if the conditions were not met.

By then, as long as the conditions are set slightly higher, it is entirely possible to trap Qingyun in, or even overturn the share transfer agreement that has already been transferred.

During this process, the stock price will surely soar as the performance improves, and he can simply lend out the shares and give them to a specific third party to sell at a high price.

When a dispute over equity arises and Hikvision's future is full of uncertainty, the stock price will inevitably plummet, and he will then buy it back at a low price, regardless of whether it is a normal transaction or the two parties part ways.

He always makes money.

With this idea in mind, Hu Yangzhong and Chen Zhongnian both maintained an objective and positive attitude when negotiating with Yao Xiangjun in the afternoon.

The only question that Gong Hongjia raised was how to ensure that additional penalties could be avoided after bypassing the regulators, and if the transaction was stopped, would it affect the continued cooperation between the two parties.

Yao Xiangjun was visibly stunned. “No, these are coordinated by the State-owned Assets Supervision and Administration Commission. In theory, they will not be held accountable by the regulatory authorities.”

Gong Hongjia cited the current surge in stock prices as an example, "Who can say for sure? It's like the market is irrational now. Since you and I came into contact, the stock price has begun to show a clear surge trend.

The longer the discussion takes, the more likely the news will be leaked out. At that time, the investors who will flock in will push the price sky-high, which will affect your ability to continue to purchase 52 shares at the current price.

It also lays hidden dangers for possible losses of state-owned assets in the future. The two companies have such a large-scale strategic cooperation, but Mr. Yao only said that in theory he would not be held accountable.

It seems that it is not convincing, right? "

As he spoke, Gong Hongjia glanced at the two partners next to him. Chen Zhongnian pondered for a moment and knew that he was dissatisfied with the acquisition price, but from his point of view, Qingyun's entry would only benefit him.

So he didn't talk to Hu Yangzhong.

Yao Xiangjun couldn't figure out what he was thinking for a moment. Thinking back to the previous contact, it seemed that this person didn't mean to refuse, so he smiled and said, "Then what kind of guarantee does Mr. Gong need?"

Gong Hongjia acted as if he was considering everyone and explained the plan of holding shares on behalf of others.

"Please wait a moment. I want to ask Mr. Gong a question. If you need additional guarantees, does the Electronic Technology Group also need the same guarantees?"

Yao Xiangjun always felt that something was wrong, but he did not think for a moment that Gong Hongjia was going to default on his debt. It was impossible not to be cautious when it came to such a large-scale transaction.

Gong Hongjia shook his head. "Institute 52 should listen to the State-owned Assets Supervision and Administration Commission. I am simply expressing my own opinions. Since this is a strategic cooperation, shouldn't we make it clear to avoid potential risks?"

Yao Xiangjun didn't dare to make a decision for a while.

Find an excuse to go out and call Li Zehua.

The latter is unaware of the tricks involved, but is not too keen on the model of first paying and then holding on behalf of others. “We are acquiring Hikvision now because the Roewe series will inevitably drive high growth in mobile Internet users in the second half of the year.

The security monitoring industry chain will also participate in the overall competition as part of the smart home plan, especially in the food delivery, express delivery, and online car-hailing businesses. The more users there are, the more control is needed.

Whether it is for the purpose of protecting passengers and consumers, or to avoid becoming the target of malicious smears by competitors, the security of the transaction process cannot be overemphasized.

Just the in-vehicle monitoring and the monitoring worn by individual delivery personnel during working hours are huge markets with a base of tens of millions or even hundreds of millions, and annual sales of tens of billions are easy to achieve.

In this case, Hikvision's future development will be very rapid, which will be directly reflected in its performance and net profit. A 100% year-on-year increase is not considered high. What if the stock price soars and the other party goes back on their word? "

Li Zehua would never pin his hopes on empty promises. Besides, Qingyun Group would not interfere in the management of security monitoring. He would rather use 5% option rewards to win over the management.

I also don’t want to make everyone unhappy because of the audit in the future.

"If the promised performance is not achieved or if additional trouble is caused to the transaction-related parties, the group can compensate with cash, but will never accept proxy holding."

Yao Xiangjun, who received clear instructions from Li Zehua, returned to the negotiation table with a tough attitude, "Qingyun Group has money, resources, and the market share that Hikvision desperately wants.

If Mr. Gong feels that there are hidden dangers in the transaction and it cannot meet your requirements, you can tell me directly, but holding shares on behalf of others is absolutely impossible."

Gong Hongjia was about to speak when he was stopped by the other two partners.

Chen Zhongnian said, "Please give me half an hour, Mr. Yao. After we have discussed it internally, I will definitely give you a trade answer."

Yao Xiangjun did not refuse, "Then I will wait for good news from Director Chen."

(End of this chapter)