King of Technology: A Fresh Start in 1983

Hong Kong, Central.

In the conference room of Jin Ding Capital.

Zhou Yuguang and Li Mingyuan are engaged in a difficult tug-of-war with Rogers, the managing director of Jinding Capital.

"Mr. Zhou, Professor Li,"

Rogers tapped lightly on the “Tiangong Technology (HK) Red Chip Listing Plan” spread out on the table.

"Golden Capital is open to your company's listing plan."

Rogers spoke slowly and deliberately, "But, regarding valuation..."

He paused for a moment, a slightly regretful smile appearing on his lips.

"But the valuation... HK$20 billion, raising HK$3 million? Forgive my bluntness, but that figure is far too optimistic."

He opened the financial projections section of the plan and pointed to several key figures.

"Let's take a look at the core assets that your company has injected."

"A 35% stake in Huaxin Precision is excellent; they are a well-known PCB manufacturer in Asia."

"But please note that CEFC's core business is OEM manufacturing."

"The technological barrier mainly lies in the stability of the process, rather than the cutting-edge design."

"Growth is constrained by upstream chip manufacturers and downstream OEMs, and their bargaining power is limited."

"Last year's net profit margin was only 8.5%, far below the global industry leader."

"Let's take a look at ACL Labs, what are the expected revenue streams from technology licensing..."

"Mr. Zhou, Professor Li, ACL has backgrounds in Tsinghua University and national projects..."

"But what is 'expectation'? Is it a contract that hasn't been signed yet? Or a valuation model?"

"Hong Kong stock investors are pragmatic; they need to see written contracts and predictable cash flow!"

"Currently, this part is almost blank on the reports."

"As for [Xuanyuan], well, it's a brand that's just starting to emerge in the mainland PC market."

"We conducted market research and found that its brand awareness is mainly concentrated in industry circles and among some high-end users."

"Public awareness is far lower than that of Lenovo, Great Wall, and Founder. Brand premium has not yet been established, and there is great uncertainty in its value assessment."

Rogers closed the plan and placed his hands on the table, crossed them.

"Mr. Zhou, Professor Li, please understand that the Hong Kong stock market has its own unique rules of the game."

He shrugged. "Investors value quantifiable, verifiable profits and cash flow! It's all supported by solid financial data!"

"Instead of a story full of 'potential' and 'expectations'."

Zhou Yuguang took a deep breath and pleaded, "Mr. Rogers, we understand your concerns. But please see the core value of Tiangong."

"Huaxin Precision is not just an OEM! It has leading multilayer board processing technology and a strict quality control system."

"It's the key to supporting the overall quality of the [Xuanyuan] machine! Its technological strength and production capacity are real assets!"

"ACL Labs' technology licensing revenue is not just empty talk!"

"The Pangu II chip is about to enter mass production! Its powerful multimedia processing capabilities will completely change the market landscape!"

"Our in-depth cooperation with Tsinghua University and the General Assembly Institute of the D Department is the greatest endorsement of our technological value!"

"The licensing revenue model is based on the impending surge in market demand!"

"Although the [Xuanyuan] brand is young, it has a clear positioning and leading technology!"

"We launched a complete system equipped with the [Pangu I] at the Shanghai Computer Show, and the market response was enthusiastic!"

"Once Pangu II is launched, the value of the Xuanyuan brand will experience a leap forward!"

"We expect to see a significant increase in market share in next quarter's report!"

Zhou Yuguang tried to impress the other party with technology and a blueprint for the future.

Potential is not the same as value!

Rogers interrupted again, "Mr. Zhou, the capital market doesn't believe in tears, nor does it readily believe in blueprints."

"What we need are our current performance, our current contracts, and our current market share!"

"Without these hard data to support it, Jin Ding cannot convince investors."

"It also cannot provide strong endorsement during the Hong Kong Stock Exchange hearing. This valuation must be reassessed."

Negotiations have reached a stalemate.

Zhou Yuguang and Li Mingyuan exchanged a glance, both seeing the heavy pressure in each other's eyes.

At this critical moment, Tiangong desperately needs to go public and raise funds!

Mass production of Pangu II requires a huge capital investment, Huaxin's production line needs a comprehensive upgrade, and the market promotion of the Xuanyuan complete machine...

However, the barriers to entry in the capital market are no easier than overcoming technological hurdles…

That evening, Golden Capital hosted a small cocktail party called "Cold Reception" at a top-tier private club in Central.

Holding a wine glass, Zhou Yuguang forced himself to stay alert as he moved among the investors and bankers in suits.

In a relatively secluded corner, a familiar figure made Zhou Yuguang's pupils involuntarily contract!

He was Lin Jianye's former deputy, Manager Ma, nicknamed "Crippled Ma".

He was talking in hushed tones with John Smith, a blond, blue-eyed investment bank manager from a well-known Wall Street firm.

Manager Ma had clearly noticed Zhou Yuguang as well.

He immediately ended his conversation with John Smith.

With a warm smile, he walked over, holding a wine glass.

"Mr. Zhou! Oh my, it's been so long!"

Ma the Cripple's voice was exaggeratedly enthusiastic, "Congratulations! I heard Tiangong is going public! Red-chip structure, big move!"

"Manager Ma, how have you been?" Zhou Yuguang maintained basic courtesy, but his voice was indifferent.

"The waters in this port city run deep."

Ma the Cripple took a step closer and lowered his voice.

"Red-chip listings involve a complex approval process with many variables..."

"Mr. Zhou, you and Mr. Chen both have technical backgrounds..."

"You have to be careful of the intricacies of the capital market!"

He paused, his voice lowering further, "I heard... that some people at the Hong Kong Stock Exchange are paying attention to the compliance issues of CEFC's equity transfer..."

"That transaction back then was rushed, the procedures... hehe, wasn't it a bit...?"

"Also, does the technology licensing of ACL Labs... constitute a loss of state-owned assets?"

"Regarding the process... were all the approvals completed according to regulations?"

He smiled meaningfully. "Mr. Zhou, at this crucial moment, we mustn't let things slip by unexpectedly!"

After saying that, Ma the Cripple turned and left.

Zhou Yuguang felt a chill run from the soles of his feet straight up to the top of his head.

He immediately dialed Chen Jianghe's mobile phone.

"Jiang He! Rogers is sticking to the argument that the valuation is too high, and negotiations have stalled!"

"There's one more thing. I ran into Crippled Ma at the party just now!"

"He hinted that he would use the compliance of CEFC's equity transfer and ACL technology licensing as leverage..."

There was a brief silence on the other end of the phone.

This silence made Zhou Yuguang's heart leap into his throat.

A few seconds later, Chen Jianghe's voice came through: "Understood. Engineer Zhou, the bottom line for valuation cannot be compromised!"

"Tell Rogers that the core value of Tiangong is not just dead numbers on paper!"

"Pangu II is about to enter mass production, which will ignite the PC multimedia market! The resulting sales surge will be exponential!"

"The technological value of the ACL Lab is backed by the National 863 Program and jointly certified by Tsinghua University and the General Armaments Institute of the Ministry of Public Security!"

"As for Crippled Ma, leave him to me!"

...