Cutting-edge technology: Starting with individual stealth equipment

Chapter 106 Strategic Cooperation Agreement Signed, Industry Upheaval

Everyone present knew that from this day forward, the industry had completely changed.

The signing ceremony began at 17 p.m.

The major partners, including LONGi, Trina Solar, Jinko Solar, GCL, and other medium-sized manufacturers with advantages in their respective niche markets, took the stage in alphabetical order by name.

Each company sent a representative who sat side by side with Lin Chuan on either side of the signing table.

On the dark blue signing table lay rows of contracts, each hundreds of pages thick.

The first person to take the stage was Mr. Li from LONGi. He sat down in front of the signing table, turned to the last page of the contract, and picked up a pen.

The pen tip hovered above the signature bar for a second, then fell, and the writer put down their name.

After signing, he pushed the contract in front of Lin Chuan, who then signed his name.

The two stood up, shook hands, and a flurry of camera shutters clicked.

The second one was General Manager Gao. He signed very quickly, almost without hesitation. After signing, he turned to the side and shook hands with Lin Chuan.

"Mr. Lin, it's a pleasure doing business with you."

"It's a pleasure doing business with you, Mr. Gao."

The other manufacturers signed in turn, and the entire public signing ceremony lasted for nearly forty minutes.

Photographers captured every handshake moment from various angles, and these photos later made the front page of major media outlets, becoming one of the most cited images in the history of China's photovoltaic industry.

After the last contract was signed, representatives from various companies stood in a row, side by side with Lin Chuan on the stage.

The crowd below the stage held up recording pens. Lin Chuan stood in the middle, with General Manager Li on his left and General Manager Gao on his right.

Everyone faced the camera together.

A press conference was held immediately after the signing ceremony, where Lin Chuan and representatives of the partner companies sat on the stage to answer questions from reporters.

The Xinhua News Agency reporter was the first to raise his hand: "Mr. Lin, does this cooperation mean that my country's photovoltaic industry will completely bid farewell to the crystalline silicon era?"

Lin Chuan replied, "It won't disappear immediately. When a new technology emerges, the old technology will still exist for a period of time. But what is certain is that more and more newly built photovoltaic power plants in the future will adopt single-step fission technology. This is an inevitable law of technological iteration, and it cannot be changed by anyone's will."

A CCTV Finance reporter asked, "Mr. Lin, in this cooperation, DeepBlue Technology took 35% of the industry profits. Will this trigger a monopoly controversy?"

Lin Chuan's answer was straightforward: "Our technology is independently developed and has global patents. It's a globally accepted business rule that technology providers receive a higher share of profits. Qualcomm, Intel, and Apple all follow this practice."

Lin Chuan then added, "If this is considered a monopoly, it is a natural monopoly brought about by innovation. We welcome competition and are willing to license our technology under reasonable conditions."

That evening, almost all the headlines in major media outlets focused on interpreting the phrase "solar power has changed the world."

DeepBlue Technology signs strategic agreement with several leading photovoltaic companies, marking the beginning of a new era for domestic photovoltaic technology.

CBN (China Business Network)

The report provided a detailed analysis of the agreement's profit-sharing scheme and industry self-regulation clauses, calling it "a watershed moment for China's photovoltaic industry, marking a shift from disorderly competition to orderly cooperation."

[Restructuring of the Trillion-Yuan Photovoltaic Market: How Did DeepBlue Technology Take 35% of the Profits?] — 21st Century Business Herald

The media report analyzed DeepBlue Technology's core competitiveness from three dimensions: technology, patents, and market, and concluded that the patent barrier of singlet fission technology will be insurmountable for anyone in the next five years.

[The photovoltaic sector is poised for divergence; deep-blue industry chain partners will collectively benefit, while traditional manufacturers outside the system will face pressure!] - Securities Times

The article analyzes the impact on the A-share photovoltaic sector and suggests that investors pay attention to investment opportunities in companies that have partnered with DeepBlue Technology. While it does not explicitly say to avoid crystalline silicon companies that have not yet transformed, it hints at this in the article.

[Lin Chuan's Overt Strategy: Not a Price Killer, But a Rule Maker] — Daily Economic News

This media outlet dedicated a full page to detailing Lin Chuan's journey from releasing the technology to promoting industry collaboration, calling it a rare case in China's business history of using technology to drive industry rules.

[A rule-maker in the industry under 30: How did Lin Chuan manage to make the photovoltaic giants bow down?] — Entrepreneur

This report interviewed several insiders from photovoltaic companies, revealing the details of the negotiation process.

[The industrialization of singlet fission technology is imminent, marking a disruptive leap for China's photovoltaic industry from follower to leader!]

Science and Technology Daily

The article analyzes the significance of singlet fission from a technical perspective, arguing that it represents a core technological breakthrough in China's new energy sector with global competitiveness.

The following day, Wednesday, October 28.

At the opening of the A-share market, DeepBlue Technology opened at 120.54 yuan, up 2.25%.

After the market opened at 9:30, the stock price quickly surged.

Stimulated by the news yesterday that DeepBlue Technology officially signed strategic cooperation agreements with major leading manufacturers, many stock investors regarded it as a major positive and believed that DeepBlue Technology's market value would definitely break through the trillion mark.

At this moment, the stock price has increased to +4.72%, and the trading volume has also reached an unprecedented level.

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Within half an hour of the market opening this morning, the trading volume reached a staggering 87 billion.

"Huh? 12345?" A stock trader who does intraday scalping suddenly became alert when he saw DeepBlue Technology hit its intraday high.

At this moment, DeepBlue Technology's intraday high is set at 123.45 yuan, corresponding to a market capitalization of 7813.15 billion yuan.

100 million.

The price has now fallen back to +3.56%. This investor has an advantage because he bought in yesterday and planned to sell at a high price today.

Seeing that the price level of 123.45 yuan could not be broken for a long time, he chose to sell half of his shares to lock in some profits.

This stock trader is a seasoned veteran at short-term trading.

He knew that the A-shares market was very mysterious, and sometimes he had to believe in it.

He had seen many stocks that had been heavily speculated on reach their peak prices. Some major players would maliciously create special numbers, such as "pair top," "straight top," or "triple top."

Moreover, the stock price movement of DeepBlue Technology has shown several unusual numbers at its previous peaks.

For example, the top of pairs like 55.77 and 61.61.

The appearance of a straight number like 123.45 at such a high price today has made this investor unusually sensitive to this number.

After 11 o'clock, DeepBlue Technology's stock price was still fluctuating in the +3% range. Seeing that it hadn't broken through 123.45 after such a long time, he decisively sold all the remaining shares.

He increasingly felt that something bad was going to happen to this stock today, given its rapid surge in a short period of time and the significant positive news that came out yesterday.

Today is absolutely the best opportunity for major players to take advantage of the positive news to unload their shares, especially after he opened the stock forum comment section and looked around.

The screen is filled with bullish sentiment, predicting six consecutive limit-up days; market sentiment is overheated.

This is often the moment of reversal. This investor has participated in many short-term surges in speculative stocks, and he has encountered this kind of sudden reversal when emotions are at their peak many times.

I was suffocated many times and beaten quite a few times.

Around noon, a major announcement was made.

CITIC Securities published a report at midday titled "DeepBlue Technology: A Dual Beneficiary of Technological Revolution and Industry Consolidation."

The analysis report.

The author is the chief analyst of the new energy industry at CITIC Securities. The report is 42 pages long and provides a comprehensive analysis of DeepBlue Technology from four dimensions: technology roadmap, patent barriers, industry landscape, and financial model.

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The report's core conclusion, highlighted in bold and box, is placed in the most prominent position: "We believe that DeepBlue Technology's singlet fission technology is unlikely to be disrupted in the foreseeable future (five to eight years)."

"The patent wall it has built covers the entire industrial chain, including materials, processes, equipment, and applications. Any competitor that tries to bypass these patents for commercial production will face extremely high legal risks and technical barriers."

"Therefore, DeepBlue Technology's voice in the global photovoltaic industry chain will continue to grow."

Regarding the company's valuation, the report made a detailed calculation: "Based on DeepBlue Technology's disclosed profit distribution plan, and considering that the global photovoltaic new installation capacity is expected to reach 100 gigawatts in five years, i.e., in 2018, with the penetration rate of single-mode fission technology at 85%, the shipment volume of single-mode fission modules will be approximately 85 gigawatts."

"Based on a profit level of 0.92 yuan per watt, the total industry profit is approximately 782 billion yuan, of which DeepBlue Technology receives 35%, or approximately 273.7 billion yuan."

"Considering the efficiency improvements and cost reductions brought about by technological iterations, as well as DeepBlue Technology's potential layout in other new energy fields such as energy storage and distributed energy, and the growth curves of its military business and phagocytic microbiome business."

"DeepBlue Technology's average net profit over the next five years is projected to reach RMB 247.5 billion per year. We assign DeepBlue Technology a P/E ratio of 50, resulting in a target market capitalization of RMB 12375.86 billion, corresponding to a target share price of RMB 195.54, representing an upside of approximately 60% from the current share price. We maintain our buy rating."

As soon as CITIC Securities released this analysis report, investors immediately became restless.

At midday, investors were cursing loudly. Some who bought shares today panicked because almost nothing good came of CITIC Securities' bullish pronouncements.

The afternoon opening of the market became a self-fulfilling prophecy.

DeepBlue Technology's stock price plummeted from +3% to -4%, before rebounding and turning positive. The intraday price movement also began to fluctuate wildly, accompanied by a continuous increase in trading volume.

Some investors were skeptical and thought that DeepBlue Technology could withstand the bullish curse of CITIC Securities, so when it fell to -4%, a lot of funds bought in at the bottom.

However, the large funds were very decisive in their exit, and several groups of speculative funds also dumped shares aggressively.

However, today, no large funds came in to take over; it was mostly retail investors who were doing the buying.

Many retail investors felt that with such a big positive development yesterday, the market would definitely continue to rise, and that it would at least try to reach the trillion-dollar market capitalization threshold in the short term.

In the previous rounds of large-scale sell-offs, retail investors were still able to absorb the selling pressure.

But as time went on, around 14 PM, no new large funds came in, and investors couldn't keep up with the demand.

As the market approached its closing bell, the intraday chart had not yet turned positive.

Some investors who were initially bullish and ready to sell today, now feel that the market won't rise and can't hold on any longer, so they start selling.

At 14:20 PM, after a fierce battle between bulls and bears, the bears ultimately prevailed.

The buying support weakened, while the selling pressure continued to surge, resulting in a further accelerated drop in DeepBlue Technology's stock price.

At 14:42 PM, DeepBlue Technology's stock price dropped to 106.09 yuan, a decrease of 10.00%, hitting the daily limit down.

Today's daily trading volume reached an epic record high of 197 billion, an increase of 82 billion compared to yesterday's 115 billion, with record volume and record price occurring simultaneously.

In the stock forum comments section, those who bought in today are all lamenting their losses.

[I knew CITIC Securities' bullish pronouncements wouldn't be good; thankfully I sold this morning.]

[No, why did it hit the daily limit down today? Such a big positive development, I don't understand, I don't get it.]

[Yesterday we were saying it would continue to hit the daily limit today ———]

[I'm not surprised at all by today's limit-down sell-off. Today is the perfect opportunity for major players to unload their shares using the positive news; they're not worried about a lack of buyers.]

[What happened to the saying that oxen never reach their peak, and the sky is the only limit? You all ran away as soon as I appeared?]

[Actually, there were already many signals on the chart. The 12345 sequence—this special number—is reminiscent of previous market tops. Look at 5577 and 6161; they all peaked on the same day they appeared. Furthermore, CITIC Securities jumped in at midday to promote a bullish outlook. Experienced investors know that if CITIC Securities is bullish, it's best to sell quickly. Don't be skeptical; the A-shares market is known for its ability to punish those who disagree.]

[I already bought them this morning, but I can't sell them today. What's the use of hindsight?]

[Get out of here tomorrow, this massive volume and sky-high prices are truly the absolute peak.]

[From its backdoor listing to today, the stock has increased 32 times. Even from this year's lowest point, it has increased nearly 15 times. This trend has already exhausted the gains of the past ten years. 123.45 is definitely a ten-year high.]

[The company is a good company, but the current stock price is definitely not a good stock price.]

The following Thursday.

DeepBlue Technology plunged again, opening at a deep 7% drop. Funds that entered yesterday were forced to cut their losses. After the opening, the stock immediately surged, rebounding to a low of -2.5%. Some investors were furious and cursed when they saw that they had sold at the lowest point.

But then it crashed again, hitting the daily limit down price. The investors who were cursing earlier were relieved to see that it was a good thing.

Finally, the price was pried open again, and the stock ultimately closed down 7.62%, with an after-hours price of 98.01 yuan.

The following Friday, just when everyone thought the market would continue to fall, it rebounded and hit the daily limit, giving many people hope.

Some even think it's the main players shaking out weak hands, and that things will continue to go smoothly next week.

But Friday's limit-up was the last chance to escape.

When the market opened on Monday, Shenlan Technology opened lower and, without any rebound, plunged to its daily limit down.

On Tuesday, the stock opened lower and continued to fall, hitting the daily limit down again. On Wednesday, it hit the daily limit down once more.

It plummeted, hitting the daily limit down for three consecutive days, staging an "A-shaped" sell-off.

On Thursday, the stock experienced its fourth consecutive day of limit-down trading, but was pulled back by funds towards the close, ultimately closing down 7.72% at 72.53 yuan, corresponding to a market capitalization of 4590 billion yuan.

In just seven trading days, the company's market value evaporated by more than 3300 billion yuan.

The cumulative maximum drop during the period plummeted by 42.69%, almost equivalent to being halved.

In the following week, DeepBlue Technology's stock price rebounded to around 93 yuan, but this was not a reversal, as there was too much trapped capital above.

It then plunged again, and in the following month, it fell to a low of 61.45 yuan, with a cumulative drop of -50.22% from its highest point, suffering a 50% loss in just one and a half months.

DeepBlue Technology's stock price has been halved, but the company's fundamentals have not changed significantly.

It's purely because the price had risen too much in the early stages, and the speculation was too intense, so the funds available to take over couldn't keep up, and then the price turned around and plummeted.

However, it has no substantial impact on the company, nor on Lin Chuan.

There is basically no threat to Su Qingyue's pledged positions. Even if the stock price is halved, it is still above 60 yuan, while the forced liquidation line for pledged positions is 31.5 yuan.

Unless it's halved once and then halved again, the market value won't fall below 2000 billion.

However, this situation is highly unlikely, because DeepBlue Technology's fundamentals and performance are solid.

If the price falls further, there will be plenty of funds to buy at the bottom. Now that the stock price has been halved, there is already strong support, and the downside potential is very limited.

Based on its current performance and fundamentals, DeepBlue Technology's reasonable valuation should be no less than 3500 billion yuan, while its current market value is around 3895 billion yuan.

Even considering the current bear market phase, the most extreme drop would be around 3000 billion.

Moreover, the market is about to see a major reversal, and in about half a year, the A-shares market will usher in an epic leveraged bull market.

As long as DeepBlue Technology doesn't cause any problems and continues to develop steadily and normally.

Riding the wave of this bull market, it is almost inevitable that the company's market capitalization will break through the trillion mark.