Tech Giants: Starting from Bankrupt Companies

84: Chapter 84 Late Night Operations Room, Counterattack Deployment8:00 PM, August 5th, Emergency Conference Room, top floor of Xinghuo Headquarters.

The incandescent lights of the conference room illuminated every weary and solemn face with a cold, hard glare.

The heavy soundproof door was tightly shut, sealing off the noise and speculation from the outside world.

Beside the long conference table, Su Chen sat in the center. To his left were Lin Wan and Shen Nanpeng, and to his right were Legal Director Liang Zhen and the Hongqi Automobile CEO Zhou Qingyu, who had just joined via a remote link.

The air was thick with the scent of strong coffee and a palpable tension.

Shen Nanpeng was the first to activate the projector in front of him. The cold blue light cast upon his face, highlighting the dark circles under his eyes.

The screen flickered with core data from today’s trading; every number felt like a heavy blow.

”Today’s turnover was 58 billion rmb, with a turnover rate of 3.2%,” he said, his voice raspy but clear.

”Note that our typical daily turnover rate is usually less than 1%. This means a massive amount of shares changed hands in a panic. Based on seat and trading characteristics, the scale of forced liquidation for margin financing positions is approximately 8 billion rmb.”

He pulled up another chart, which was densely packed with the distribution of warning lines for margin financing accounts.

”According to our model, if the stock price continues to fall tomorrow, around the 1750 rmb mark, another 4 billion rmb of margin financing positions will face forced liquidation risks. Once this level is breached...” Shen Nanpeng paused, his gaze sweeping across the room.

”The technical selling pressure could trigger a chain reaction, potentially even hitting the risk control lines of some public funds and causing passive redemptions, leading to a much wider stampede.”

”1750...” Lin Wan softly repeated the number, her fingers tracing a line on the table unconsciously.

This was nearly 3% lower than today’s closing price. While it seemed far from the ”800 rmb” target price in the short-selling report, in a market where emotions were collapsing, the breakdown of psychological defenses often came faster than the collapse of actual value.

Legal Director Liang Zhen adjusted his glasses. In front of him lay a paper copy of the short-selling report, covered in yellow sticky notes at key points.

”The report’s accusation regarding the ’exceeding expectations’ of the Red Flag project costs relies on a core ’piece of evidence’ that cites an internal cost estimate draft numbered ’HQ-CB-202704-DRAFT’. This draft does exist,” he said, his speech steady and carrying the characteristic rigor of a legal professional.

”But it was an early version we used for initial project evaluation four months ago, in April of this year. It was full of the most conservative assumptions and the most pessimistic estimates. The formal, board-approved final budget plan ’HQ-CB-202707-FINAL’ replaced it three months ago. The overall budget was optimized by 15%, and the technical path is much clearer. The short-seller either obtained outdated information or deliberately used the early draft to exaggerate costs.”

In the video feed, Zhou Qingyu was in his office at the Changchun Red Flag R&D Center, which was also brightly lit.

The former global vice president of Volkswagen had a resolute face, though his brows were tightly furrowed.

”Mr. Su, everyone,” his voice came through the speaker with the distinct force of a Northeastern accent. ”The report’s description of the R&D cost overruns for the ’spark super energy’ platform I am responsible for is taking things out of context. We did increase the budget due to higher battery safety standards and intelligent chassis performance goals, but the product premium and technological barriers brought by this investment are enough to cover it in future market returns. I can provide the complete project financial rolling forecasts audited according to international accounting standards.”

He leaned forward slightly, staring into the camera. ”If necessary, I can fly over overnight and, at tomorrow’s press conference, in front of all the media, clearly explain the purpose and current progress of every major investment in Hongqi Automobile since the acquisition.”

Su Chen had been listening quietly, his fingers tapping unconsciously on the smooth tabletop.